Document:

Employment Agreement

 Exhibit 10.36 
 Employment Agreement 
 April 5, 2006 
 This Employment Agreement (this “Agreement”) is between Saks Incorporated (“SKS”) and its
subsidiaries listed on the signature page of this Agreement and Charles G. Tharp (the “Executive”). 
 Terms
and Conditions 
 The parties to this Agreement agree as follows: 
 1. Employment. Effective January 9, 2006, the Company (as defined in the next sentence) employs the Executive, and during the
Executive’s employment the Executive will serve, as SKS’s Executive Vice President-Human Resources or in such other capacity of equal or greater status and responsibility with SKS or its subsidiaries as the Chief Executive Officer of SKS
designates. In this Agreement the term “the Company” means SKS or one of its subsidiaries that employs the Executive in accordance with this Agreement at the time of determination or reference. During the Executive’s
employment the Executive’s place of business will be located in New York, New York and the Executive will report directly to the Chief Executive Officer of SKS. 
 2. Duties. During the Executive’s employment the Executive will (a) devote substantially all of the Executive’s working time, energies, and skills to the benefit of the
Company’s business and (b) serve the Company diligently and to the best of the Executive’s ability and to use the Executive’s best efforts to follow the policies and directions of the Executive’s supervisors and the Board of
Directors of Saks. 
 3. Compensation. During the Executive’s employment the Executive’s compensation and
benefits under this Agreement will be as follows: 
 (a) Base Salary. The Company will pay the Executive
a base salary at a rate of not less than $500,000 per year (“Base Salary”). Base Salary will be paid in installments in accordance with the Company’s normal payment schedule but not less frequently than monthly. All
payments will be subject to the deduction of payroll taxes and similar assessments as required by law. 
 (b)
Bonus. In addition to Base Salary, the Executive will be eligible for an annual cash bonus. The bonus for plan achievement at the target level will be 50% of Base Salary and the bonus for plan achievement at the maximum level will be
75% of Base Salary, in all circumstances in accordance with and subject to the terms and conditions of the Company’s bonus program in effect from time to time. 
 (c) Effect Of Change in Control On Stock-Based Awards. Except as provided in section 5(b), SKS’s 2004 Long-Term
Incentive Plan (the “2004 Plan”) will govern 

 
the vesting of awards made to the Executive in accordance with such plan if a Change in Control (for all purposes of this Agreement as defined in the 2004
Plan) occurs. 
 (d) Performance Shares. Subject to the terms and conditions of the 2004 Plan and the
following sentences of this subsection (d), SKS will award to the Executive 30,000 performance shares pursuant to Section 8 of the 2004 Plan with respect to each of the SKS’s 2007 and 2008 fiscal years. Each of the two annual awards of
30,000 performance shares will include performance targets and performance measures as determined by the Human Resources and Compensation Committee of the SKS Board of Directors (the “Committee”) in accordance with
Section 8(e) of the 2004 Plan. Each of the three annual awards of 30,000 performance shares will reflect (i) a 10,000-share payout at the threshold level of performance, (ii) a 20,000-share payout at the target level of performance,
and (iii) a 30,000-share payout at the maximum level of performance. The Committee in accordance with the 2004 Plan will determine whether an award has been earned. To receive the performance shares subject to an award, the Executive must be
continuously employed by the Company to the last day of the restriction period except as provided in section 5(a) of this Agreement. Each award to be made as described in this subsection (d) is subject to Committee authorization and the
Executive’s execution and delivery to SKS of a performance share agreement in the form that in all material respects is the same form as executed and delivered by executives of the Company in positions that are comparable to the
Executive’s position. Performance shares awarded in accordance with this subsection (d) but not earned by the Executive will terminate and will not be delivered to the Executive. 
 (e) Substituted Cash Payment. The Company’s offer of employment to the Executive referred to an award by the
Company of 20,000 shares of restricted stock that would vest in two installments of 10,000 shares each, the first installment to vest on the first anniversary of the award date and the second installment to vest on the second anniversary of the
award date. Subject to the last sentence of this subsection, in lieu of, and in substitution for, the award of 20,000 shares of restricted stock, the Company will pay to the Executive within five business days after each of February 22, 2007
and February 22, 2008 an amount in cash equal to the sum of (i) and (ii), with (i) being the product of (A) the New York Stock Exchange closing price of the Company’s Common Stock on the applicable February 22 and
(B) 10,000, and (ii) being the product of (A) the total per-share dividends paid with respect to the Company’s Common Stock (valued at fair market value if paid other than in cash) from and after the date of this Agreement to and
including the applicable February 22 and (B) 10,000, in each case less deductions for payroll taxes and similar assessments as required by law. Each of the two payments referred to in the preceding sentence is referred to as a
“Cash Payment.” Except as provided in subsection 5(a) of this Agreement, to receive the first Cash Payment the Executive must be continuously employed by the Company to and including February 22, 2007 and to receive the
second Cash Payment the Executive must be continuously employed by the Company to and including February 22, 2008. 
 4.
Insurance And Benefits. During the Executive’s employment the Company will allow the Executive to participate in each employee benefit plan and receive each executive benefit applicable to executives in positions that are
comparable to the Executive’s position. 
  

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 5. Termination Without Cause; Death; Disability. 
 (a) Termination Without Cause. The Company may terminate this Agreement without Cause (as defined below in section 6)
at any time and upon such termination the Executive’s employment will terminate. Except as provided in this subsection, if the Company terminates this Agreement without Cause, then 
 (i)(A) SKS will pay to the Executive as severance in a lump sum an amount equal to the sum of (1) the Executive’s Base Salary
for twenty-four months at the rate in effect at the time of termination and (2) the Executive’s target bonus potential amount for the fiscal year during which the termination of this Agreement occurs (and no other bonus will be payable)
(such sum, the “Severance Payment”), and (B) each unvested restricted stock award (and not performance share awards) will immediately vest in an amount equal to the product of the number of shares subject to the award
multiplied by a fraction the numerator of which is the number of days elapsed during the three-year vesting period for the award to and including the effective date of the termination of the Executive’s employment and the denominator of which
is 1,095, and each unvested Cash Payment will immediately vest in an amount equal to the product of the Cash Payment multiplied by a fraction the numerator of which is the number of days elapsed during the one-year Cash Payment vesting period to and
including the effective date of the termination of the Executive’s employment and the denominator of which is 365, and all awards of restricted stock that do not vest, all Cash Payments that do not vest, and all unvested performance share
awards, will be immediately forfeited, and 
 (ii) if the Company’s termination occurs primarily in anticipation of or as
a result of or due to, directly or indirectly, a Change in Control (this and all subsequent references to “Change in Control” refer to the definition of that term in the 2004 Plan), in addition to the Company’s payment
of the Severance Payment to the Executive, all of the Executive’s restricted stock awards, the target amount of performance share awards, and each unpaid Cash Payment will immediately vest. 
 With respect to the immediate vesting of the unpaid Cash Payments, the Company will make them within five business days following the termination of the Executive’s
employment. To calculate a Cash Payment any portion of which immediately vests in accordance with this subsection (a), the Company will use the New York Stock Exchange closing price of the Company’s common stock on the date of termination of
the Executive’s employment, and if termination occurs as described in clause (ii) of this subsection (a) the Company will use the per-share consideration paid to the Company’s shareholders with respect to their shares of the
Company’s common stock as a result of the Change in Control instead of the New York Stock Exchange closing price. 
 SKS’s obligations to provide
the benefits described in this subsection (a) are subject to SKS’s receipt of a written release, in form and substance reasonably satisfactory to SKS, executed and delivered by the Executive in which the Executive releases SKS and its
affiliates from all claims of, and liabilities and obligations to, the Executive arising out of this Agreement and the Executive’s employment by the Company. Termination of this Agreement in accordance with 

  

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this subsection (a) will not terminate the Executive’s obligations under section 8 of this Agreement or SKS’s obligations under section 7 of
this Agreement. If the Company terminates this Agreement without Cause and as a result the Executive would be entitled to receive a severance payment in accordance with the terms of SKS’s 2000 Change of Control and Material Transaction
Severance Plan, as amended from time to time (the “2000 Plan”), if then in effect, that would be greater than the Severance Payment, then only in that circumstance and solely for purposes of 2000 Plan the Executive may elect
to waive the Executive’s rights to receive the Severance Payment and upon the waiver the Executive will not be entitled to receive the Severance Payment and this Agreement will not constitute an Existing Program as defined in the 2000 Plan. If
the Executive directly or indirectly engages in an association that constitutes an Association (as defined in section 8(b)(iv)(D) of this Agreement), SKS’s obligations to provide the benefits described in the second sentence of this subsection
will immediately terminate. 
 (b) Medical Plan Benefits. If the termination of the Executive’s
employment occurs in anticipation of, or on or after, a Change in Control, during the eighteen-month period following the termination of the Executive’s employment the Company will, subject to the next sentence, reimburse the Executive monthly
for the costs of medical insurance for the Executive and the Executive’s family under COBRA less the then-applicable monthly associate contribution amount for comparable participation under the Company’s medical insurance plan. If prior to
the end of the eighteen-month period and as a result of employment the Executive becomes eligible for medical insurance the coverage and the cost of which is comparable in all material respects to the coverage and the cost of participation in the
Company’s medical insurance plan then in effect, the Company’s obligations in the preceding sentence will immediately terminate. Unless the Company’s obligations in the first sentence of this paragraph have terminated in accordance
with the preceding sentence, at the end of the eighteen-month period the Company will pay to the Executive in a lump sum an amount sufficient to enable the Executive to obtain equivalent medical insurance plan coverage for six months, no amount of
which the Executive will be obligated to return upon subsequent employment. If termination of the Executive’s employment occurs as described in clause (B) of the first sentence of paragraph (i) of this subsection (b), the
Company’s obligation with respect to the Executive’s participation under the Company’s medical insurance plan will be limited to the Executive’s COBRA rights, which the Executive may exercise at the Executive’s expense.

 (c) Death. This Agreement will terminate upon the Executive’s death, except as to: (i) the
right of the Executive’s estate to exercise all unexercised stock options, if any, in accordance with and subject to SKS’s stock option plan under which the unexercised stock options were granted, (ii) other entitlements under this
Agreement that expressly survive death, (iii) any rights that the Executive’s estate or dependents may have under COBRA or any other federal or state law or that are derived independent of this Agreement by reason of the Executive’s
participation in any employee benefit arrangement or plan maintained by the Company, and (iv) the right of the Executive’s estate to receive all shares of restricted awarded to the Executive that are vested as of the date of the
Executive’s death. 
 (d) Disability. If the Executive becomes disabled at any time prior to the
termination of this Agreement, the Executive will after the Executive becomes disabled continue to receive all payments and benefits provided by this Agreement, less all disability payments 

  

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received, for twelve months. The Executive will be deemed to be disabled when the Executive becomes entitled to receive disability benefits under SKS’s
Long-Term Disability Plan. 
 (e) Application of IRC Code Section 409A. If the Company or the
Executive reasonably and in good faith determines that any payment to be made or benefit to be provided to the Executive upon the Executive’s termination of employment would be subject to Section 409A(a)(1) of the Internal Revenue Code of
1986, as amended (the “Code”), the Company will, to the extent necessary, delay making the payment or providing the benefit until the earliest date on which the Company in good faith determines that the payment can be paid or
the benefit can be provided without causing the payment or the benefit to be subject to the Section 409A(a)(1). 
 6.
Termination by the Company for Cause. The Company may terminate this Agreement for Cause at any time and upon such termination the Executive’s employment will terminate, in which event no salary or bonus will be paid after such
termination. For purposes of this Agreement, the term “Cause” will mean and be strictly limited to: (i) conviction of the Executive, after all applicable rights of appeal have been exhausted or waived, for any crime that
materially discredits the Company or is materially detrimental to the reputation or goodwill of the Company; (ii) commission of any material act of fraud or dishonesty by the Executive against the Company or commission of an immoral or
unethical act that materially reflects negatively on the Company; if first the Executive is provided with written notice of the claim and with an opportunity to contest it before the Board of Directors; (iii) the Executive’s violation of
the Company’s Code of Business Conduct and Ethics, which violation the Executive knows or reasonably should know could reasonably be expected to result in a material adverse effect on the Company, if first the Executive is provided with written
notice of the violation and with an opportunity to contest it before the Board of Directors, or (iv) the Executive’s continual and material breach of the Executive’s obligations under section 2 of this Agreement as determined by the
Committee after the Executive has been given written notice of the breach and a reasonable opportunity to cure the breach. Termination for Cause will be effective immediately upon notice sent or given to the Executive. Termination of this Agreement
in accordance with this section 6 will not terminate the Executive’s obligations under section 8 of this Agreement or SKS’s obligations under section 7 of this Agreement. 
 7. Tax Gross-Up. 
 (a) Amount of Gross-Up Payment. Anything in this Agreement to the contrary notwithstanding, if any payment or distribution by SKS or its affiliated companies to or for the benefit of the Executive
(whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise, but determined without regard to any additional payments required under this section 7) (a “Payment”) becomes or
would become subject to the excise tax imposed by Section 4999 of the Code, or any interest or penalties are incurred by the Executive with respect to such excise tax (such excise tax, together with any such interest and penalties, are together
referred to as the “Excise Tax”), then, subject to the next sentences of this subsection (a), SKS will make an additional payment to the Executive (a “Gross-Up Payment”) in an amount such that after
payment by the Executive of all taxes (including any interest or penalties imposed with respect to such taxes), including, without limitation, any income taxes (and any interest and penalties imposed with respect thereto) and Excise Tax imposed upon
the 

  

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Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments. The Executive will be entitled
to a Gross-Up Payment in accordance with this section 7(a) only if the Executive’s “parachute payments” (as such term is defined in Section 280G of the Code) exceed three hundred thirty percent of the Executive’s “base
amount” (as determined under Section 280G(b) of the Code) (such product, the “Threshold”). If the Payment does not exceed the Threshold, the Executive will not receive a Gross-Up Payment and the amount of the
Payment will be reduced to an amount that is one dollar less than the largest amount that would not become subject to the tax imposed by Section 4999 of the Code and that SKS could pay to the Executive without loss of deduction under
Section 280G(a) of the Code. 
 (b) Calculations; When Paid. Subject to the provisions of section
7(c), all determinations required to be made under this section 7, including whether and when a Gross-Up Payment is required and the amount of such Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall be made
by a nationally recognized public accounting firm retained by SKS (the “Accounting Firm”) that will provide detailed supporting calculations both to SKS and the Executive as soon as practicable following the receipt of notice
from the Executive that there has been a Payment. All fees and expenses of the Accounting Firm will be borne solely by SKS. All Gross-Up Payments, as determined pursuant to this section 7, shall be paid by SKS to the Executive promptly following the
receipt of the Accounting Firm’s determination. If the Accounting Firm determines that no Excise Tax is payable by the Executive, the Accounting Firm will furnish the Executive with a written opinion that failure to report the Excise Tax on the
Executive’s applicable federal income tax return should not result in the imposition of a negligence or similar penalty or comparable opinion supporting such determination in accordance with the practices and procedures of the Accounting Firm.
Any determination by the Accounting Firm will be binding upon SKS and the Executive absent manifest error. As a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Accounting
Firm hereunder, it is possible that Gross-Up Payments which will not have been made by SKS should have been made (“Underpayment”), consistent with the calculations required to be made in accordance with this section 7. If SKS
exhausts its remedies pursuant to section 7(c) and the Executive thereafter is required to make a payment of any Excise Tax, the Accounting Firm will determine the amount of the Underpayment that has occurred and any such Underpayment will be
promptly paid by SKS to or for the benefit of the Executive. 
 (c) IRS Claims. The Executive will notify
SKS in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by SKS of the Gross-Up Payment. The Executive will give the notice as soon as practicable but no later than 10 business days after the
Executive is informed in writing of the claim and will apprise SKS of the nature of the claim and the date on which such claim is requested to be paid. The Executive will not pay the claim prior to the expiration of the 30-day period following the
date on which the Executive gives the notice to SKS (or such shorter period ending on the date that any payment of taxes with respect to the claim is due). If SKS notifies the Executive in writing prior to the expiration of the 30-day period that
SKS desires to contest the claim, the Executive will (i) give SKS any information reasonably requested by SKS relating to the claim, (ii) take all action in connection with contesting the claim as SKS reasonably requests in writing from
time to time, including, 

  

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without limitation, accepting legal representation with respect to the claim by an attorney reasonably selected by SKS, (iii) cooperate with SKS in good
faith in order effectively to contest the claim, and (iv) permit SKS to participate in all proceedings relating to the claim. SKS will bear and pay directly all costs and expenses (including additional interest and penalties) incurred in
connection with the contest and will indemnify and hold the Executive harmless, on an after-tax basis, for all Excise Tax and income tax (including applicable interest and penalties) imposed as a result of the representation and payment of costs and
expenses. Without limitation on the foregoing provisions of this section 7(c) and subject to the next two sentences, SKS will control all proceedings taken in connection with the contest and, at its sole option, may pursue or forgo any and all
administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of the claim and may, at its sole option, either direct the Executive to pay the tax claimed and sue for a refund or contest the claim in any
permissible manner, and the Executive agrees to prosecute the contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as SKS determines. If SKS directs the Executive to
pay the claim and sue for a refund, SKS will advance the amount of the payment to the Executive on an interest-free basis and will indemnify and hold the Executive harmless, on an after-tax basis, from all Excise Tax and income tax (including
applicable interest and penalties) imposed with respect to the advance or with respect to any imputed income with respect to the advance. With respect to any extension of the statute of limitations relating to payment of taxes for the taxable year
of the Executive as to which the contested amount is claimed to be due, the Executive may seek to limit the extension to the contested amount. SKS’s control of the contest will be limited to issues with respect to which a Gross-Up Payment would
be payable in accordance with this section 7 and the Executive will be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority. 
 (d) Refunds. If, after the receipt by the Executive of an amount advanced by SKS pursuant to section 7(c), the
Executive becomes entitled to receive, and receives, any refund with respect to the claim, the Executive will (subject to SKS’s compliance with the requirements of section 7(c)) promptly pay to SKS the amount of the refund (together with all
interest paid or credited on the refund after taxes applicable to it). If, after the receipt by the Executive of an amount advanced by SKS pursuant to Section 7(c), a determination is made that the Executive will not be entitled to any refund
with respect to the claim and SKS does not notify the Executive in writing of its intent to contest the denial of refund prior to the expiration of 30 days after such determination, then the advance will be forgiven and will not be required to be
repaid and the amount of the advance will offset, on a dollar-for-dollar basis, the amount of Gross-Up Payment required to be paid. 
 (e) Survival. The rights of the Executive, and the obligations of SKS, in this section 7 will survive the termination of the Executive’s employment and the termination of this Agreement. 
 8. Protection of SKS’s Confidential Information and Goodwill. 
 (a) Confidential Information. For purposes of this Agreement, “Confidential Information”
includes, without limitation but subject to the next sentence, all 

  

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documents and information of SKS or one of more of its subsidiaries, in all forms and mediums, concerning or evidencing one or more of the following: sales;
costs; pricing; strategies; forecasts and long-range plans; financial and tax information; personnel information; business, marketing, and operational projections, plans, and opportunities; and customer, vendor, and supplier information.
Confidential Information excludes any document or information that is or becomes available to the public other than as a result of any breach of this Agreement or other unauthorized disclosure by the Executive. Confidential Information does not have
to be designated as such to constitute Confidential Information. 
 (b) Non-Disclosure; Non-Competition; and
Remedies. 
 (i) The Executive acknowledges and agrees that (A) the business of the Company and its affiliates is
highly competitive, (B) that the Company and its affiliates have expended considerable time and resources to develop good will with its customers, vendors, and others and to create, exploit, and protect Confidential Information, (C) the
Company and its affiliates must continue to prevent the dilution of their goodwill and unauthorized use and disclosure of Confidential Information to avoid irreparable harm to their businesses, (D) the Executive’s participation in the
business activities of the Company and its affiliates is and will be integral to the continued operation, goodwill, and success of the business of the Company and its affiliates, (E) the Executive will be creating Confidential Information, and
(F) the Executive will have access to Confidential Information that could be used by third parties in a manner that would be detrimental to the competitive position of the Company or one of its affiliates. 
 (ii) The Company acknowledges and agrees that the Executive will need the benefits and use of the goodwill of the Company and its
affiliates and Confidential Information in order for the Executive to properly perform the Executive’s responsibilities in accordance with this Agreement. The Company will provide the Executive immediate access to new and additional
Confidential Information and authorizes the Executive to engage in activities that will create new and additional Confidential Information. The Executive acknowledges and agrees that the Executive will benefit from access to Confidential
Information, including without limitation as a result of the Executive’s increased earnings and earning capacity. 
 (iii) Accordingly, the Executive agrees that: 
 (A) All Confidential Information will remain the sole and exclusive
property of the Company and its affiliates; 
 (B) The Executive will protect and safeguard all Confidential Information;

 (C) The Executive will hold all Confidential Information in strictest confidence and not, directly or indirectly, disclose
or divulge any Confidential Information to any person other than an employee of the Company or one of its affiliates to the extent necessary for the proper performance of the Executive’s responsibilities unless authorized to do so by the
Company or compelled to do so by law or valid legal process; 
  

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 (D) If the Executive believes the Executive is compelled by law or valid legal process
to disclose or divulge any Confidential Information, the Executive will notify the Company in writing sufficiently in advance of any such disclosure to give the Company the opportunity to take all actions necessary to protect the interests of the
Company or its affiliates against such disclosure; 
 (E) At the end of the Executive’s employment pursuant to this
Agreement for any reason or at the request of the Company at any time, the Executive will return to the Company all copies of all Confidential Information in all tangible forms and mediums; and 
 (F) Absent the promises and representations of the Executive in this paragraph (iii) and paragraph (iv) below, the Company
would not provide the Executive with Confidential Information, would not authorize the Executive to engage in activities that would create new and additional Confidential Information, and would not enter into this Agreement. 
 (iv) The Executive agrees to not engage in a Prohibited Activity for the period beginning on the date of this Agreement and ending twelve
months from the date of termination of the Executive’s employment for any reason. “Prohibited Activity” means any one or more of the following: 
 (A) Disparaging the Company or any of its affiliates, or any products, services, or operations of the Company or any of its affiliates,
or any former, current, or future officer, director, or employee of any the Company or any of its affiliates; 
 (B) Whether
on the Executive’s own behalf or on behalf of any other individual, partner, firm, corporation, or business organization, either directly or indirectly soliciting or inducing or attempting to solicit or induce any person who is then employed by
the Company or any of its affiliates to leave that employment; 
 (C) Whether on the Executive’s own behalf or on behalf
of any other individual, partnership, firm, corporation, or business organization, either directly or indirectly soliciting or inducing, or attempting to solicit or induce any person who is then a customer, supplier, or vendor of the Company or any
of its affiliates to cease being a customer, supplier, or vendor of the Company or to divert all or any part of such person’s or entity’s business from the Company or any of its affiliates; 
 (D) Associating, directly or indirectly, as an employee, officer, director, agent, partner, owner, stockholder, representative,
consultant, or vendor with, for, or on behalf of any Competitor (as defined below in this subparagraph (D) (each an “Association”), unless the Company in the exercise of its reasonable discretion has approved each
Association in accordance with the following sentence. The Company’s approval for an Association will be evidenced exclusively by a written agreement that has been executed and delivered by, and is legally binding on, the Company and the
Executive, that includes terms and conditions that the Company deems reasonably necessary to preserve its goodwill and the confidentiality of the Confidential Information in accordance with this Agreement, and that includes all other terms and
conditions that the Company determines in its sole discretion are reasonably necessary under 

  

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the circumstances. The restrictions in the foregoing sentences of this subparagraph (D) apply to the Executive’s direct and indirect performance of
the same or similar activities the Executive has performed for the Company or any of its affiliates and to all other activities that reasonably could lead to the disclosure of Confidential Information. The Executive will not have violated this
subparagraph (D) solely as a result of the Executive’s investment in capital stock or other securities of a Competitor or any of its Affiliates listed on a national securities exchange or actively traded in the over-the-counter market if
the Executive and the members of the Executive’s immediate family together do not, directly or indirectly, hold more than one percent of all such shares of capital stock or other securities issued and outstanding. For purposes of this
subparagraph (D), the term “Competitor” means (i) prior to the completion of a Parisian Transaction (as defined below in this paragraph (D)), each of Federated Department Stores, Inc., Dillard’s, Inc., Kohls
Corporation, Belk, Inc., Limited Brands, Inc., J. C. Penney Co, Inc., Sears Holding Corporation, The Bon-Ton Stores, Inc., Target Corporation, The Neiman Marcus Group, Inc., Barney’s New York, Inc., and Nordstrom, Inc., and the Affiliates and
successors of each of them, and (ii) upon and after the completion of a Parisian Transaction, each of The Neiman Marcus Group, Inc., Barney’s New York, Inc., and Nordstrom, Inc., and the Affiliates and successors of each of them. For
purposes of this subparagraph (D), “Affiliate” means with respect to a specific corporation, limited liability company, general or limited partnership, sole proprietorship, or other for profit or non-profit business
organization or association (each the “subject entity”), any other corporation, limited liability company, general or limited partnership, sole proprietorship, or other for profit or non-profit business organization or
association directly or indirectly controlling or controlled by or directly or indirectly under common control with the subject entity, and “Parisian Transaction” means the sale or other transfer for consideration, in one or
more transactions, of SKS’s Parisian business. 
 (v) The Executive acknowledges and agrees that (A) the
restrictions contained in this section 8(b) are ancillary to an otherwise enforceable agreement, (B) the agreements and undertakings of the Company in this Agreement and the Executive’s position and responsibilities with the Company give
rise to, and are valid consideration for, the Company’s interest in restricting the Executive’s post-employment activities, (C) the restrictions are reasonably designed to enforce the Executive’s agreements and undertakings in
this section 8(b) and the Executive’s common-law obligations and duties owed to the Company and its affiliates, (D) the restrictions are reasonable and necessary, valid and enforceable under Tennessee law, and do not impose a greater
restraint than reasonably necessary to protect the goodwill and other legitimate business interests of the Company and its affiliates and the Confidential Information, (E) the agreements and undertakings of the Company and the Executive in this
section 8(b) are not contingent on the duration of the Executive’s employment with the Company; and (F) absent the agreements and undertakings made by the Executive in this section 8(b), the Company would not provide the Executive with
Confidential Information, would not authorize the Executive to engage in activities that would create new and additional Confidential Information, and would not have entered into this Agreement. 
 (vi) Without limiting the right of Company to pursue all other legal and equitable remedies available for violation by the Executive of
the Executive’s agreements in this section 8, the Executive agrees that such other remedies cannot fully compensate Company for any such violation and that the Company will be entitled to injunctive relief to prevent any such 

  

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violation or any continuing violation. The Company will be entitled to recover its attorneys’ fees, expenses, and court costs, in addition to any other
remedies to which the Company may be entitled if the Executive breaches this Agreement. The Executive will be entitled to seek to recover its attorneys’ fees, expenses, and court costs, in addition to any other remedies to which the Executive
may be entitled if the Executive prevails in such injunctive proceeding. 
 (vii) The Executive will forfeit all unexercised,
unearned, and unpaid awards under the 2004 Plan, including, but not by way of limitation, awards earned but not yet paid, all unpaid dividends and dividend equivalents, and all interest, if any, accrued on the foregoing if (i) the Executive,
without the written consent of SKS, engages directly or indirectly in an association that constitutes an Association; or (ii) the Executive performs any act or engages in any activity which in the opinion of the Chief Executive Officer of SKS
is inimical to the best interests of the SKS. 
 (viii) If within six months following the Executive’s termination of
employment the Executive, without the written consent of SKS, engages directly or indirectly in an association that constitutes an Association, the Executive will be required to pay to SKS an amount in cash equal to the sum of the following:
(i) with respect to awards made under the 2004 Plan consisting of stock options and stock appreciation rights, the amounts realized in connection with the Executive’s exercise of the options or the settlement of the stock appreciation
rights on or after, or within six months prior to, the Executive’s termination of employment; and (ii) with respect to awards made under the 2004 Plan consisting of restricted stock, restricted stock units, performance shares, performance
share units, and performance units, the value of the awards that vested on or after, or within six months prior to, the Executive’s termination of employment, which value will be determined as of the date of vesting. 
 (ix) Subsections (vii) and (viii) will be void and of no legal effect upon a Change in Control (as defined in the 2004 Plan).

 (x) If in any action before any court or agency legally empowered to enforce the agreements contained in this section 8 any
term, restriction, or agreement contained in this section 8 is found to be unreasonable or otherwise not permitted by applicable law, then such term, restriction, or agreement will be deemed modified to the extent necessary to make it enforceable by
such court or agency. 
 (xi) The agreements of the Executive contained in this section 8 will survive the end of the
Executive’s employment by the Company for any and all reasons. 
 9. General Provisions. 
 (a) Notices. Any notice to be given hereunder by either party to the other may be effected in writing by personal
delivery, mail, overnight courier, or facsimile. Notices will be addressed to the parties at the addresses set forth below, but each party may change its address by written notice in accordance with this section 9(a). Notices will be deemed
communicated as of the actual receipt or refusal of receipt. 
  

 11 

 If to the Executive: 
             Charles G. Tharp 
             12 East 49th Street 
             New York, New York 10017 
 If to the Company:
        General Counsel 
             Saks Incorporated 
             750 Lakeshore Parkway 
             Birmingham, Alabama 35211 
 (b)
Partial Invalidity. If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions will, nevertheless, continue in full force and without being
impaired or invalidated in any way. 
 (c) Entire Agreement. Except for any prior grants of
options, restricted stock, or other forms of incentive compensation evidenced by a written instrument or by an action of the Board or Directors, this Agreement supersedes any and all other agreements (including without limitation all employment
agreements, which agreements are terminated), either oral or in writing, between the parties hereto with respect to employment of the Executive by the Company and contains all of the covenants and agreements between the parties with respect to such
employment. Each party to this Agreement acknowledges that no representations, inducements or agreements, oral or otherwise, that have not been embodied herein, and no other agreement, statement or promise not contained in this Agreement, will be
valid or binding. Any modification of this Agreement will be effective only if it is in writing signed by the party to be charged. 
 (d) Resignation. If the Executive’s employment is terminated, the termination will be deemed to constitute the Executive’s resignation as an officer of the Company (and all of its affiliates), as the case may
be, effective as of the date of such termination. Upon termination of employment, the Executive will return to the Company upon such termination any of the following which contain confidential information: all documents, instruments, papers,
facsimiles, and computerized information which are the property of the Company or such subsidiary or affiliate. 
 (e)
Headings. The section and subsection headings are for convenience of reference only and will not define or limit the provisions of the sections and subsections. 
 (f) Attorney’s Fees. If the Executive brings any action to enforce the Executive’s rights under this
Agreement after a Change in Control (as defined in the 2004 Plan), the Company will reimburse the Executive for the Executive’s reasonable costs, including attorney’s fees, incurred. The Company will reimburse the Executive as the costs
are incurred and without regard to the outcome of the action. 
 (g) Successors and Assigns; Transfer of
Obligations. This Agreement is binding upon the Company and its successors (including without limitation by merger or 

  

 12 

 
otherwise by operation of law) and permitted assigns of each and upon the Executive and the Executive’s heirs, executors and other legal
representatives, and permitted assigns. If the Company complies with the following sentences of this subsection (g), the Company may transfer or delegate its obligations under this Agreement with respect to the Executive to any acquirer of, or other
successor to, all or substantially all of the business of SKS (whether direct or indirect, by purchase of assets or SKS common stock, merger, consolidation, or otherwise) (the “Acquirer”), which transfer or delegation to the
Acquirer will not terminate, or be deemed to constitute a termination of, this Agreement or termination of the Executive’s employment for any purpose, including with respect to this Agreement and the 2000 Plan. The Company’s rights in the
preceding sentence are subject to the conditions that the Company first (i) obtains from the Acquirer its binding and enforceable written agreement (which expressly provides that the Executive is a third-party beneficiary of the Acquirer’s
obligations) to assume and perform unconditionally the obligations of SKS and the Company in this Agreement in accordance with their terms and (ii) delivers the Acquirer’s agreement to the Executive. 
 (h) Cooperation. The Executive will reasonably cooperate in good faith with the Company as and when requested by the
Company with regard to all current and future internal and government inquiries and investigations, litigation and administrative agency proceedings, and other legal or accounting matters. The Executive’s cooperation will include, without
limitation but subject to the Executive’s availability at times and places that does not unreasonably interfere with the Executive’s reasonable personal and business obligations, (1) being available for, and providing information to
the Company and its legal, accounting, and other representatives during, in-person meetings and interviews and by telephone and (2) being available for and providing depositions and other sworn testimony. Following the termination of this
Agreement the Company will reimburse the Executive for all reasonable out-of-pocket expenses the Executive incurs to comply with this subsection. 
 (i) Arbitration. All disputes and controversies between the Company and the Executive, whether arising out of or relating to this Agreement, the breach of this Agreement, or otherwise, will be
settled by arbitration before a single arbitrator in Nashville, Tennessee, administered by the American Arbitration Association (the “AAA”) in accordance with its Commercial Arbitration Rules then in effect, and judgment on
the award rendered by the arbitrator may be entered in any court having jurisdiction. The single arbitrator will be selected by the mutual agreement of the Company and the Executive, unless they are unable to agree to an arbitrator, in which case,
the arbitrator will be selected under the procedures of the AAA. The arbitrator will have the authority to award any remedy or relief that a court of competent jurisdiction could order or grant, including, without limitation, the issuance of an
injunction. However, the Company and the Executive each may, without inconsistency with this arbitration provision, apply to any court having jurisdiction over the dispute or controversy and seek interim provisional, injunctive, or other equitable
relief until the arbitration award is rendered or the controversy is otherwise resolved. Except as necessary in court proceedings to enforce this subsection or an award rendered in accordance with it, or to obtain interim relief, none of the
Company, the Executive, or an arbitrator may disclose the existence, content, or results of any arbitration without the prior written consent of the Company and the Executive. The Company and the Executive acknowledge that this Agreement evidences a
transaction involving interstate 

  

 13 

 
commerce. Notwithstanding any choice of law provision included in this Agreement, the United States Federal Arbitration Act shall govern the interpretation
and enforcement of this subsection. 
 (j) Governing Law. This Agreement will be governed by and
construed in accordance with the laws of the State of Tennessee. 
  

			
	Saks Incorporated
		
	By:	 	/s/ CHARLES J. HANSEN
	 Charles J. Hansen
 Executive Vice President
and
 General Counsel
  
 Saks & Company
 Saks Direct, Inc.
 Saks Distribution Centers, Inc.
 Saks Fifth Avenue Distribution Company
 Saks Fifth Avenue, Inc.
 Saks Wholesalers, Inc.
 Saks Fifth Avenue of Texas, Inc.
 Saks Holdings, Inc.

Tex SFA, Inc.
 SCCA Store Holdings, Inc.
 SCIL Store Holdings, Inc.
 SCCA, LLC
 SCIL, LLC
 SFAILA, LLC
 New York City Saks, LLC
 Saks Fifth Avenue Texas,
L.P.
 Parisian Stores, Inc.
 Club Libby Lu,
Inc.

		
	By:	 	/s/ CHARLES J. HANSEN
	 Charles J. Hansen
 Executive Vice
President

	
	/s/ CHARLES G. THARP
	Charles G. Tharp

  

 14Form of Indemnification

 Exhibit 10.37 
 INDEMNIFICATION AGREEMENT 
 THIS AGREEMENT is entered into, effective as of
April 5, 2006, between Saks Incorporated, a Tennessee corporation (the “Company”), and [NAME OF INDEMNITEE] (“Indemnitee”). 
 WHEREAS, it is essential to the Company that it attract and retain as directors and officers the most capable persons available; 
 WHEREAS, Indemnitee serves the Company as a director or officer, or both; 
 WHEREAS, both the
Company and Indemnitee recognize the increased risk of litigation and other claims currently being asserted against directors and officers of corporations; and 
 WHEREAS, in order to enhance Indemnitee’s continued and effective service to the Company, and in order to induce Indemnitee to provide continued services to the Company, the Company wishes to enter into
this Agreement relating to the indemnification of, and the advancement of expenses to, Indemnitee as well as to the coverage of Indemnitee under the Company’s directors’ and officers’ liability insurance policies (the “D&O
Insurance”). 
 NOW, THEREFORE, in consideration of the above premises and of Indemnitee’s continuing to serve the Company
as a director or officer, or both, and intending to be legally bound hereby, the parties agree as follows: 
 1. Certain
Definitions: 
 (a) The term Advance shall have the meaning assigned to it in Section 2(c). 
 (b) Board: The Board of Directors of the Company. 
 (c) Change in Control: 
 (i) Any person or entity, including a “group” as
defined in Section 13(d)(3) of the 1934 Act, other than the Company, a subsidiary of the Company, or any employee benefit plan of the Company or its subsidiaries, becomes the beneficial owner of the Company’s securities having 25 percent
or more of the combined voting power of the then outstanding securities of the Company that may be cast for the election for directors of the Company (other than as a result of an issuance of securities initiated by the Company in the ordinary
course of business); or 
 (ii) As the result of, or in connection with, any cash tender or exchange offer, merger or other
business combination, sale of assets or contested election, or any combination of the foregoing transactions, less than a majority of the combined voting power of the then outstanding securities of the Company or any successor corporation or entity
entitled to vote generally in the election of directors of the Company or such other corporation or entity after such transaction, are held in the aggregate by holders of the 

 
Company’s securities entitled to vote generally in the election of directors of the Company immediately prior to such transactions; or 
 (iii) During any period of two consecutive years, individuals who at the beginning of any such period constitute the Board cease for any
reason to constitute at least a majority thereof, unless the election, or the nomination for election by the Company’s shareholders, of each director of the Company first elected during such period was approved by a vote of at least two-thirds
of the directors of the Company then still in office who were directors of the Company at the beginning of any such period. 
 (d) The term
Company shall have the meaning assigned to it in the first paragraph of this Agreement. 
 (e) Disinterested Director: A
director of the Company who is not a party to the Proceeding in respect of which indemnification or an Advance is sought by Indemnitee. 
 (f) The term D&O Insurance shall have the meaning assigned to it in the Recitals. 
 (g) Expenses: Any reasonable
expense, including without limitation, attorneys’ fees, retainers, court costs, transcript costs, fees and expenses of experts, including accountants and other advisors, travel expenses, duplicating costs, postage, delivery service fees, filing
fees, and all other disbursements or expenses of the types typically paid or incurred in connection with investigating, defending, being a witness in, or participating (including on appeal), or preparing for any of the foregoing, in any Proceeding
relating to any Indemnifiable Event, and any expenses of establishing a right to indemnification under any of Sections 2, 4 or 5 of this Agreement, in each case, to the extent reasonable. 
 (h) Indemnifiable Costs: Any and all Expenses, liability or loss, judgments, fines and amounts paid in settlement and any interest, assessments,
or other charges imposed thereon, and any federal, state, local, or foreign taxes imposed as a result of the actual or deemed receipt of any payments under this Agreement. 
 (i) Indemnifiable Event: Any event or occurrence, either prior to or after the execution of this Agreement, related to the fact that Indemnitee is
or was serving the Company as a director or officer, or both, or while serving in any such capacity is or was serving at the request of the Company as a director or officer, or both, of another corporation, partnership, joint venture, trust or other
enterprise or related to anything done or not done by Indemnitee in any such capacity, whether or not the basis of the Proceeding is alleged action in an official capacity with the Company, whether as a director or officer, or both, or in any other
capacity, as described above. 
 (j) The term Indemnitee shall have the meaning assigned to it in the first paragraph of this
Agreement. 
 (k) Independent Counsel: means a law firm, or a member of a law firm, selected in the manner provided in
Section 3(a), that is experienced in matters of corporation law and neither presently is, nor in the past three years has been, retained to represent: (i) the 

  

 2 

 
Company or any of its subsidiaries or affiliates, (ii) Indemnitee or (iii) any other party to the Proceeding giving rise to a claim for
indemnification or Advances hereunder, in any matter (other than with respect to matters relating to indemnification and advancement of expenses). No law firm or lawyer shall qualify to serve as Independent Counsel if that person would, under the
applicable standards of professional conduct then prevailing, have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement. 
 (l) The term Other Indemnitees shall have meaning assigned to it in Section 8. 
 (m) The term Other Indemnification Agreements shall have the meaning assigned to it in Section 8. 
 (n) Proceeding: Any threatened, pending, or completed action, suit or proceeding, whether civil, criminal, administrative or investigative,
whether formal or informal, whether threatened, pending or completed prior to or after the execution of this Agreement, that relates to an Indemnifiable Event. 
 (o) Reviewing Party: The Reviewing Party shall be shall be (i) the Board acting by a majority vote of a quorum of Disinterested Directors, (ii) if a quorum of Disinterested Directors cannot be
obtained, a committee designated by the Board (in which designation directors who are not Disinterested Directors may participate) consisting solely of two or more Disinterested Directors, which Committee shall act by majority vote, or (iii) if
a quorum of Disinterested Directors cannot be designated under clause (i) above, and a committee cannot be designated under clause (ii) above, the Independent Counsel; provided that in the event of a Change in Control, the Reviewing Party
shall be the Independent Counsel. 
 (p) The term Subsequent Determination shall have the meaning assigned to it in Section 2(d).

 (q) The term TBCA shall have the meaning assigned to it in Section 2(c). 
 (r) The term Trust shall the meaning assigned to it in Section 8. 
 (s) The term Trustee shall have the meaning assigned to it in Section 8(b). 
 2. Agreement to Indemnify. 
 (a) General Agreement regarding Indemnification. In the event Indemnitee was, is, or becomes a party to or witness or other participant in, or is threatened to be made a party to or witness or other participant in, a Proceeding by
reason of (or arising in part out of) an Indemnifiable Event, the Company shall indemnify Indemnitee from and against Indemnifiable Costs, to the fullest extent permitted by applicable law, as the same exists or may hereafter be amended or
interpreted (but in the case of any such amendment or interpretation, only to the extent that such amendment or interpretation permits the Company to provide broader indemnification rights than were permitted prior thereto); provided that the
Company’s 

  

 3 

 
commitment set forth in this Section 2(a) to indemnify Indemnitee shall be subject to the limitations and procedural requirements set forth in this
Agreement. 
 (b) Partial Indemnification. If Indemnitee is entitled under any provision of this Agreement to indemnification by the
Company for some or a portion of Indemnifiable Costs, but not, however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee is entitled. 
 (c) Advancement of Expenses. Indemnitee may request that the Company advance to Indemnitee any and all Expenses incurred by Indemnitee (an
“Advance”), prior to final disposition of any Proceeding. The Company shall make such an Advance to Indemnitee if: 
 (i) Indemnitee furnishes to the Company a Request, Affirmation and Undertaking, executed by Indemnitee, substantially in the form attached hereto as Exhibit A; 
 (ii) the Reviewing Party makes a determination that the facts then known would not preclude indemnification of Indemnitee under the
Tennessee Business Corporation Act (the “TBCA”); and 
 (iii) the Advance is authorized by the Reviewing Party,
provided that if the Reviewing Party is the Independent Counsel, the Advance shall be authorized by those entitled to select the Independent Counsel pursuant to Section 3(a). 
 Advances shall be made without regard to Indemnitee’s ability to repay the Expenses. Indemnitee’s obligation to reimburse the Company for Advances shall be unsecured and no interest shall be charged thereon.
The Reviewing Party shall make a determination with respect to Indemnitee’s entitlement to an Advance, and a decision shall be made regarding the authorization of the Advance, pursuant to this Section 2(c), in each case to the extent
practical, not later than 60 calendar days after receipt by the Company of a request for such Advance (which request shall include an itemization, in reasonable detail, of the Expenses for which advancement is sought). The Company shall notify
Indemnitee of the Reviewing Party’s determination regarding Indemnitee’s entitlement to an Advance, and the decision regarding the Advance, no later than two business days after the decision regarding such authorization has been made. If
it is determined that Indemnitee is not entitled to an Advance, the Company shall specify in its notice to Indemnitee which of the conditions of this Section 2(c) has not been satisfied. If it is determined that Indemnitee is entitled to an
Advance and the Advance has been authorized pursuant to this Section 2(c), the Company shall pay such Advance within 10 business days of such authorization. If Indemnitee has commenced legal proceedings in a court of competent jurisdiction to
secure a determination that Indemnitee should be indemnified under applicable law, as provided in Section 4, any determination made by the Reviewing Party that Indemnitee would not be permitted to be indemnified under applicable law shall not
be binding and Indemnitee shall not be required to reimburse the Company for any Advance until a final judicial determination is made with respect thereto (as to which all rights of appeal therefrom have been exhausted or have lapsed). 

 

 4 

 (d) Effect of Subsequent Determination by Reviewing Party. Following an initial determination
pursuant to Section 2(c) that Indemnitee is entitled to Advances with respect to a Proceeding, and the authorization of such Advances pursuant to Section 2(c), the Company shall, subject to this Section 2(d), continue to provide
Advances to Indemnitee with respect to such Proceeding, provided that any request for such an additional Advance must be accompanied by an itemization, in reasonable detail, of the Expenses for which advancement is sought. Any such Advances shall be
paid by the Company within 30 days of a request therefor. Notwithstanding the foregoing, the Company shall have no further obligation to make Advances to Indemnitee with respect to a Proceeding if the Reviewing Party makes a determination on the
basis of additional facts made known to it subsequent to the initial determination referenced in Section 2(c)(ii), that the Company would be precluded from indemnifying Indemnitee under the TBCA in connection with such Proceeding (a
“Subsequent Determination”). If the Reviewing Party is the Board or a committee of the Board, the Board or such committee may at any time consider whether a Subsequent Determination is warranted. If the Reviewing Party is the Independent
Counsel, the Board or a committee of the Board may at any time request that the Independent Counsel consider whether a Subsequent Determination is warranted. 
 (e) Exception to Obligation to Indemnify and Advance Expenses. Notwithstanding anything in this Agreement to the contrary, Indemnitee shall not be entitled to indemnification or advancement pursuant to this
Agreement in connection with any Proceeding initiated by Indemnitee against the Company or any director or officer of the Company unless (i) the Board has consented to the initiation of such Proceeding; or (ii) the Proceeding is one to
enforce Indemnitee’s rights under Section 5. 
 3. Independent Counsel. 
 (a) Selection of Independent Counsel. The Independent Counsel, if any, shall be selected by (i) the Board acting by a majority vote of a
quorum of Disinterested Directors, (ii) if a quorum of Disinterested Directors cannot be obtained, by majority vote of a committee designated by the Board (in which designation directors who are not Disinterested Directors may participate)
consisting solely of two or more Disinterested Directors or (iii) if a quorum of Disinterested Directors cannot be designated under clause (i) above, and a committee cannot be designated under clause (ii) above, by majority vote of
the full Board (in which vote directors who are not Disinterested Directors may participate). 
 (b) Role of Independent Counsel.
After a Change in Control, the Board shall seek legal advice only from the Independent Counsel with respect to all determinations concerning the rights of Indemnitee to indemnity payments and Advances under this Agreement or any other agreement or
under applicable law or the Company’s Amended and Restated Charter or Amended and Restated By-laws now or hereafter in effect relating to indemnification for Indemnifiable Events. The Independent Counsel shall render its written opinion to the
Board and Indemnitee as to whether and to what extent Indemnitee should be permitted to be indemnified under applicable law. Such indemnification shall be subject to authorization by those entitled to select the Independent Counsel pursuant to
Section 3(a). The Company agrees to pay the reasonable fees of the Independent Counsel and to indemnify fully such counsel against any and all expenses (including attorneys’ fees), claims, liabilities, loss, and damages arising out of or
relating to this Agreement or the engagement of Independent Counsel pursuant hereto. 
  

 5 

 4. Process and Appeal. 
 (a) Indemnification Payment. 
 (i) A determination with respect to Indemnitee’s entitlement to indemnification and authorization of such indemnification shall, to the extent practicable, be made not later than 60 calendar days after receipt by the Company of a
written demand on the Company for indemnification (which written demand shall include such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is
entitled to indemnification). Indemnitee shall be notified of the determination with respect to Indemnitee’s entitlement to indemnification no later than two business days thereafter. 
 (ii) Indemnitee shall be entitled to indemnification of Indemnifiable Costs, and shall receive payment thereof, from the Company within 10
business days after the Reviewing Party has made its determination with respect to Indemnitee’s entitlement to indemnification and such indemnification has been authorized in accordance with the terms of this Agreement. 
 (b) Suit to Enforce Rights. If (i) no determination of entitlement to an Advance or indemnification shall have been made within the time
limitation for such determinations set forth in Sections 2(c) or 4(a)(i), (ii) payment of an Advance or indemnification pursuant to Section 2(c) or 4(a)(ii) is not made within the period permitted for such payments by such sections or
(iii) the Reviewing Party determines pursuant to Section 2(c) or 4(a) that Indemnitee is not entitled to an Advance or indemnification, then Indemnitee shall have the right to enforce the rights granted under this Agreement by commencing
litigation in any court of competent jurisdiction in the State of Tennessee seeking an initial determination by the court or challenging any determination by the Reviewing Party or any aspect thereof. The Company hereby consents to service of
process and to appear in any such proceeding. Any determination by the Reviewing Party not challenged by Indemnitee within six months of the date of the Reviewing Party’s determination shall be binding on the Company and Indemnitee. The remedy
provided for in this Section 4 shall be in addition to any other remedies available to Indemnitee in law or equity. 
 (c) Burden of
Proof, Defense to Indemnification, and Presumptions. 
 (i) To the maximum extent permitted by applicable law in making a
determination with respect to entitlement to indemnification (or payment of Advances) hereunder, the Reviewing Party shall presume that an Indemnitee is entitled to indemnification (or payment of Advances) under this Agreement, and the Company shall
have the burden of proof to overcome that presumption in connection with the making by the Reviewing Party of any determination contrary to that presumption. 
 (ii) It shall be a defense to any action brought by Indemnitee against the Company to enforce this Agreement that it is not permissible
under applicable law for the Company to indemnify Indemnitee for the amount claimed or pay the Advances requested. 
  

 6 

 (iii) For purposes of this Agreement, the termination of any claim, action, suit, or
proceeding, by judgment, order, settlement (whether with or without court approval), conviction, or upon a plea of nolo contendere, or its equivalent, shall not create a presumption that Indemnitee did not meet any particular standard of conduct or
have any particular belief or that a court has determined that indemnification is not permitted by applicable law. 
 5.
Indemnification for Expenses Incurred in Enforcing Rights. The Company shall indemnify Indemnitee against any and all Expenses to the fullest extent permitted by law and advance Expenses to Indemnitee (pursuant to the procedures set
forth in Section 2(c)) that are incurred by Indemnitee in connection with any claim asserted against or action brought by Indemnitee for: 
 (a) enforcement of this Agreement; 
 (b) indemnification of Indemnifiable Costs or payment of Advances by the Company under this
Agreement or any other agreement or under applicable law or the Company’s Amended and Restated Charter or Amended and Restated By-laws now or hereafter in effect relating to indemnification for Indemnifiable Events; and/or 
 (c) recovery under directors’ and officers’ liability insurance policies maintained by the Company. 
 6. Notification and Defense of Proceeding. 
 (a) Notice. Promptly after receipt by Indemnitee of notice of the commencement of any Proceeding, Indemnitee will, if a claim in respect thereof is to be made against the Company under this Agreement, notify
the Company of the commencement thereof. The failure to notify or promptly notify the Company shall not relieve the Company from any liability which it may have to Indemnitee otherwise than under this Agreement, and shall not relieve the Company
from liability hereunder except to the extent the Company has been prejudiced or as further provided in Section 6(d). 
 (b) Suits by
or in Right of Company. In the event any Proceeding is by or in the right of the Company or any of its subsidiaries, Indemnitee may, at the option of Indemnitee, either control the defense thereof or accept the defense provided under the D&O
Insurance; provided, however, that Indemnitee may not control the defense if such decision would affect the coverage provided by the D&O Insurance, if any, to Indemnitee, the Company or the other directors and officers covered thereby. The
Company shall not be entitled to assume the defense of any Proceeding brought by or in the right of the Company or any of its subsidiaries. 
 (c) Defense. With respect to any Proceeding as to which Indemnitee notifies the Company of the commencement thereof, the Company will be entitled to participate in the Proceeding at its own expense and except as otherwise noted
herein, to the extent the Company so wishes, it may assume the defense thereof with counsel selected by the Company. After 

  

 7 

 
notice from the Company to Indemnitee of its election to assume the defense of any Proceeding, the Company will not be liable to Indemnitee under this
Agreement or otherwise for any Expenses subsequently incurred by Indemnitee in connection with the defense of such Proceeding other than reasonable costs of investigation or as otherwise provided below. Indemnitee shall have the right to employ
separate counsel in such Proceeding, but all Expenses related thereto incurred after notice from the Company of its assumption of the defense shall be at Indemnitee’s expense unless: (i) the employment of counsel by Indemnitee has been
authorized by the Company, (ii) Indemnitee has reasonably determined that there may be a conflict of interest between Indemnitee and the Company in the defense of the Proceeding, or (iii) the Company shall not within 60 calendar days in
fact have employed counsel to assume the defense of such Proceeding, in each of which cases all Expenses of the Proceeding shall be borne by the Company. 
 (d) Settlement of Claims. The Company shall not be liable to indemnify Indemnitee under this Agreement or otherwise for any amounts paid in settlement of any Proceeding effected without the
Company’s written consent. Neither the Company nor Indemnitee shall settle any Proceeding in any manner that would impose any penalty or limitation on the other party without the other party’s written consent. Neither the Company nor
Indemnitee will unreasonably withhold consent to any proposed settlement. The Company shall not be liable to indemnify Indemnitee under this Agreement with regard to any judicial award if the Company was not given a reasonable and timely
opportunity, at its expense, to participate in the defense of such action; the Company’s liability hereunder shall not be excused if participation in the Proceeding by the Company was barred by this Agreement. 
 7. Non-Exclusivity. The rights of Indemnitee hereunder shall be in addition to any other rights Indemnitee may have under the laws
of the State of Tennessee, the Company’s Amended and Restated Charter, Amended and Restated By-laws, applicable law, or otherwise. To the extent that a change in applicable law (whether by statute or judicial decision) permits greater
indemnification by agreement than would be afforded currently under the Company’s Amended and Restated Charter, Amended and Restated By-laws, applicable law, or this Agreement, it is the intent of the parties that Indemnitee enjoy by this
Agreement the greater benefits so afforded by such change. 
 8. Establishment of Trust. Promptly following the
occurrence of a Change in Control, the Company shall create a grantor or “rabbi” trust (the “Trust”) for the benefit of Indemnitee and the other indemnitees (the “Other Indemnitees”) who are parties to agreements with
the Company that are similar to this Agreement (the “Other Indemnification Agreements”). The Company shall fund the Trust from time to time in an amount sufficient to satisfy any and all amounts reasonably anticipated to be incurred
pursuant to this Agreement and the Other Indemnification Agreements, including, without limitation, all Expenses reasonably anticipated to be incurred in connection with investigating, preparing for, participating in, or defending any Proceeding.
The amount or amounts to be deposited in the Trust pursuant to the foregoing funding obligation shall be recommended by the Independent Counsel and determined by those entitled to select the Independent Counsel pursuant to Section 3(a). The
terms of the Trust shall provide that: 
 (a) the Trust shall not be revoked or the principal thereof invaded, without the written consent of
Indemnitee and the Other Indemnitees; 
  

 8 

 (b) the trustee of the Trust (the “Trustee”) shall make Advances to Indemnitee within the time
periods specified by Section 2(c) for the making of Advances by the Company following the determination and authorization specified by Section 2(c); 
 (c) the Trust shall continue to be funded by the Company in accordance with the funding obligations set forth in this Section 8; 
 (d) the Trustee shall promptly pay to Indemnitee all amounts for which Indemnitee shall be entitled to indemnification pursuant to Section 2 of this Agreement; and 
 (e) all unexpended funds in the Trust shall revert to the Company upon a final determination by the Reviewing Party or a court of competent jurisdiction,
as the case may be, that Indemnitee and the Other Indemnitees have been fully indemnified under the terms of this Agreement and the Other Indemnification Agreements. 
 The Trustee shall be a bank or trust company chosen by the Company and having assets in excess of $10 billion. Nothing in this Section 8 shall relieve the Company of any of its obligations under this Agreement.
The Company shall pay all costs of establishing and maintaining the Trust and shall indemnify the Trustee against any and all expenses (including attorneys’ fees), claims, liabilities, loss and damages arising out of or relating to this
Agreement or the establishment and maintenance of the Trust. 
 9. Liability Insurance. To the extent the Company
maintains an insurance policy or policies providing directors’ or officers’ liability insurance, Indemnitee, if a director or officer of the Company, shall be covered by such policy or policies, in accordance with its or their terms.

 10. Amendment of this Agreement. No supplement, modification, or amendment of this Agreement shall be binding unless
executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement shall operate as a waiver of any other provisions hereof (whether or not similar), nor shall such waiver constitute a continuing waiver. Except
as specifically provided herein, no failure to exercise or any delay in exercising any right or remedy hereunder shall constitute a waiver thereof. 
 11. Subrogation. In the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and
shall do everything that may be necessary to secure such rights, including the execution of such documents necessary to enable the Company effectively to bring suit to enforce such rights. 
 12. No Duplication of Payments. The Company shall not be liable under this Agreement to make any payment in connection with any
claim made against Indemnitee to the extent Indemnitee has otherwise actually received payment (whether under the Company’s Amended and Restated Charter, the Company’s Amended and Restated By-laws, any insurance policy, by law, or
otherwise) of the amounts otherwise indemnifiable hereunder. 
  

 9 

 13. Binding Effect. This Agreement shall be binding upon and inure to the benefit of
and be enforceable by the parties hereto and their respective successors and assigns, including any direct or indirect successor by purchase, merger, consolidation, or otherwise to all or substantially all of the business and/or assets of the
Company, spouses, heirs, and personal and legal representatives. The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation, or otherwise) to all or substantially all of the business and/or
assets of the Company, by written agreement in form and substance reasonably satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform
if no such succession had taken place. This Agreement shall continue in effect regardless of whether Indemnitee continues to serve the Company or, at the Company’s request, any other enterprise, as a director or officer, or both. 
 14. Severability. If any provision (or portion thereof) of this Agreement shall be held by a court of competent jurisdiction to be
invalid, void, or otherwise unenforceable, the remaining provisions shall remain enforceable to the fullest extent permitted by law. Furthermore, to the fullest extent possible, the provisions of this Agreement (including, without limitation, each
portion of this Agreement containing any provision held to be invalid, void, or otherwise unenforceable, that is not itself invalid, void, or unenforceable) shall be construed so as to give effect to the intent manifested by the provision held
invalid, void, or unenforceable. 
 15. Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Tennessee applicable to contracts made and to be performed in such State without giving effect to the principles of conflicts of laws. 
 16. Notices. All notices, demands, and other communications required or permitted hereunder shall be made in writing and shall be
deemed to have been duly given if delivered by hand, against receipt, or mailed, postage prepaid, certified or registered mail, return receipt requested, and addressed 
 to the Company at: 
 750 Lakeshore Parkway 
 Birmingham, AL 35211 
 Attn: General Counsel

 and 
 to Indemnitee at:

 [INDEMNITEE] 
 [ADDRESS]

 Notice of change of address shall be effective only when done in accordance with this Section. All notices complying with this Section shall be deemed to
have been received on the date of delivery or on the third business day after mailing. 
  

 10 

 IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Agreement as of the
day specified above. 
  

									
	COMPANY:	 		 	SAKS INCORPORATED
				
		 		 	By:	 	  
		 		 		 	Name:	 	  
		 		 		 	Title:	 	  
			
	INDEMNITEE:	 		 	[INDEMNITEE]
			
		 		 	  

  

 11 

 Exhibit A 
 REQUEST, AFFIRMATION, AND UNDERTAKING 
 Saks Incorporated 
 750 Lakeshore Parkway 
 Birmingham, AL 35211 
 The Board of Directors: 
 I
hereby request, pursuant to the Amended and Restated Charter (the “Charter”) and the Amended and Restated Bylaws (the “Bylaws”) of Saks Incorporated (the “Company”), and the Indemnification Agreement
between myself and the Company dated as of
                                     (the
“Agreement”), that the Company advance reasonable expenses incurred by me in connection with [a Proceeding as defined in the Agreement] (the “Proceeding”). 
 Subject to the Charter, the Bylaws, the Agreement, and Sections 48-18-502, 48-18-504, 48-18-506 and 48-18-507 of the Tennessee Business Corporation Act
and to induce the Company to advance reasonable expenses incurred by me in connection with the Proceeding pursuant to Section 2(c) of the Agreement: 
  

	 	•	 	I affirm that it is my good faith belief that: 

 (a) my
conduct in connection with the matters that are the subject of the Proceeding (my “Conduct”) was undertaken in good faith; 
 (b) I reasonably believed, to the extent that my Conduct was undertaken in my official capacity with the Company, that it was in the Company’s best interest; 
 (c) I reasonably believed, in all cases not covered by paragraph (b) above, that my Conduct was at least not opposed to the best interests of the Company; and 
 (d) In the case of any criminal proceeding, I had no reasonable cause to believe that my Conduct was unlawful. 
  

	 	•	 	I hereby undertake and agree to repay to the Company any funds advanced to me or paid on my behalf if it is ultimately determined that I am not entitled to indemnification. I shall
make any such repayment promptly following written notice from the Company of such determination. 

  

	 	•	 	I agree that payment by the Company of my expenses in connection with the Proceeding in advance of the final disposition thereof shall not be deemed an admission by the Company that
it shall ultimately be determined that I am entitled to indemnification. 

  

	
	
	   
	[Name of Recipient]
	
	   
	[Signature]
	
	   
	Date:

  

 A-1 

 Schedule of Parties to 
 Indemnification Agreements 
 Non-Employee Directors 
 Ronald de Waal 
 Stanton J. Bluestone 
 Robert B. Carter 
 Julius W. Erving 
 Michael S. Gross 
 Donald E. Hess 
 Nora P. McAniff 
 C. Warren Neel 
 Marguerite W. Sallee 
 Christopher J. Stadler 
 Executive Officers 
 R. Brad Martin, Chairman of the Board of
Directors 
 Stephen I. Sadove, Chief Executive Officer and Director 
 James A. Coggin, President and Chief Administrative Officer 
 Douglas E. Coltharp, Executive Vice President and Chief Financial Officer 

Charles J. Hansen, Executive Vice President and General Counsel 
 Kevin G.
Wills, Executive Vice President of Finance and Chief Accounting Officer 
  

 A-2

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