Document:

Form of Stock Option Agreement

 
STOCK OPTION AGREEMENT 
 May 1,
2001 
 This is a Stock Option Agreement between Saks Incorporated (the “Company”) and each individual who receives an Option
Grant (as defined in Section 1) (the “Optionee”). 
  
 Preliminary Statement 
 This Agreement is made pursuant to the Company’s 1997 Stock-Based Incentive Plan (the
“Plan”). Capitalized terms used but not defined in this Agreement are defined in the Plan as of, and without giving effect to any amendment after, the date of this Agreement. 
  
 Terms and Conditions 
 The Company and the Optionee agree as follows: 
  

 
 1. Options Covered. 
 a. This Agreement is the agreement referred to in paragraph 6 of the Plan. For each of the Company’s stock option grants to the Optionee pursuant to the Plan (each
an “Option Grant”), this Agreement, the Plan, and each document given to the Optionee reflecting the amount, exercisability, and other terms of the Option Grant (“Grant Document”) govern. In this
Agreement the words (i) “Common Stock” mean the Company’s Common Stock, par value $.10 per share, (ii) “Option” and “Options” mean the right and option to
purchase all or any part of the number of shares of Common Stock subject to an Option Grant, (iii) “exercise of the Options” and similar words used in this Agreement mean the purchase of shares of Common Stock subject to
an Option Grant in accordance with this Agreement, (iv) “Exercise Price” mean the price the Optionee must pay to the Company to exercise an option as specified by the Company in a Grant Document. The Optionee is not
required to exercise the Options. The Options are not “incentive stock options” as those terms are used in Section 422 of the Internal Revenue Code of 1986. 
 b. No Option may be exercised after the date that is the seventh anniversary of the Option’s date of grant and will terminate on that date (the “Option Termination Date”). 
  
 2. Exercisability of Options. 
 a. Except as the Grant Document may otherwise specify for an Option Grant and (i) subject to the other Sections of this Agreement and the Plan, and (ii) unless
the Options have terminated or have been forfeited in accordance with this Agreement or the Plan, the Optionee on or before the Option Termination Date may purchase shares of Common Stock subject to an Option Grant as follows: 

			
	 Percent Of Number Of Shares
 Specified In
The Option Grant That
 May Be Purchased
	 	 Date After Which
 Shares May Be
Purchased

	 20
	 	Six months after the Option Grant date
	 40
	 	The first anniversary of the Option Grant date
	 60
	 	The second anniversary of the Option Grant date
	 80
	 	The third anniversary of the Option Grant date
	 100
	 	The fourth anniversary of the Option Grant date

 The above vesting schedule applies only if the Grant Document is
silent as to vesting. 
  
 3. Exercising
the Options. 
 a. The Optionee may exercise Options that are exercisable in accordance with Section 2 and that have not terminated or been
forfeited in accordance with this Agreement or the Plan. To exercise Options included as part of an Option Grant, the Optionee must, on or prior to the Option Termination Date for the Option Grant, notify the Company (attention: Tina Kerr

 (telephone: 865-981-9568; fax: 865-980-0433) of the number of whole shares of Common Stock the
Optionee intends to purchase. The Optionee may not purchase less than 100 shares of Common Stock upon any exercise unless the number of shares of Common Stock subject to the Options at the time of exercise is less than that number. Unless otherwise
directed by the Company and subject to Section 10, the Optionee must include payment of the Exercise Price times the number of shares of Common Stock to be purchased (the “Purchase Price”). The date on which the Optionee
delivers the written notice to the Company in accordance with this subsection a. is referred to in this Agreement as the “Exercise Date”. Fractional share interests may be accumulated into whole shares. 
 b. The Optionee must pay the Purchase Price (1) in cash or by check payable to the order of the Company, (2) at the Company’s discretion, by exchange of
shares of Common Stock beneficially owned by the Optionee, the Optionee’s spouse, or both of them, for a period of at least six months from the Exercise Date (“Delivered Stock”), or (3) a combination of (1) and
(2). Delivered Stock will be valued at its Fair Market Value determined as of the close of business on the day before the Exercise Date. “Fair Market Value” means, on any date, (A) if the Common Stock is then listed and
traded on a registered national securities exchange or is quoted in the NASDAQ National Market System, the closing price recorded in composite transactions as reported in The Wall Street Journal for that date, or (B) in the absence of
reported sales or if the Common Stock is not so listed or quoted, the value of the Common Stock as determined in good faith by the Committee. 
 c. When the
Optionee complies with the requirements of this Section 3 and is otherwise in compliance with this Agreement and the Plan, in each case to the reasonable satisfaction of the Committee, the Company will promptly deliver to the Optionee one or
more stock certificates that together represent the shares of Common Stock that the Optionee has purchased. 
  
 4. Termination of Employment; Termination of Services as a Director. 
 a. Except as provided in this
Section 4 and in Section 5, the Optionee may not exercise Options unless: 
 (i) the Optionee, if an employee, is then in the employ of (A) the
Company, (B) an affiliated corporation, (C) a corporation issuing or assuming the Options in a transaction to which Section 424(a) of the Internal Revenue Code of 1986 applies, or (D) a parent corporation or subsidiary
corporation of the corporation described in clause (C), and the Optionee has remained continuously so employed since the date of grant of the Options. 
 (ii)
the Optionee, if a director, is then serving as a director of the Company and has continuously so served since the date of grant of the Options. 
 b. If the
Optionee’s employment, or service as a director, Terminates (other than by reason of Disability, Retirement, or death), the Optionee may, for a period of three months from the date of Termination, exercise all Options that are exercisable in
accordance with Section 2 (determined in accordance with subsection d. of this Section 4) and that have not otherwise terminated or been forfeited in accordance with this Agreement or the Plan. 
 c. If the Optionee’s employment, or service as a director, Terminates by reason of Retirement or Disability, the Optionee may, for a period of one year from the date
of Termination, exercise all Options that are exercisable in accordance with Section 2 (determined in accordance with subsection d. of this Section 4) and that have not otherwise terminated or been forfeited in accordance with this
Agreement or the Plan. 
 d. For purposes of subsections b. and c. of this Section 4, the 

 
number of shares of Common Stock that may be purchased upon exercise of the Options in accordance with Section 2 will be determined as of the date of
Termination and not as of the date the Options are exercised or any other date. 
 e. Nothing in this Agreement or in the Plan will (i) confer upon the
Optionee, if an employee, any right to continue in the employ of the Company or any of its affiliated corporations or interfere in any way with the right of the Company or any affiliated corporation to terminate the Optionee’s employment at any
time or (ii) confer upon the Optionee, if a director, any right to continue to serve as a director of the Company or interfere in any way with the right of the Company’s Board of Directors to terminate the Optionee’s service as a
director at any time. 
  
 5. Death of Optionee. 
 If the Optionee dies (a) while employed by the Company or an affiliated corporation or serving as a director of the Company, (b) within twelve months after
Termination due to Retirement or Disability, or (c) within three months after Termination for any other reason, the Optionee’s Beneficiary may, for a period of one year from the date of the Optionee’s death, exercise all Options that
are exercisable in accordance with Section 2 (determined in accordance with the next sentence of this Section 5) and that have not otherwise terminated or been forfeited in accordance with this Agreement or the Plan. The number of shares
of Common Stock that may be purchased upon exercise of the Options in accordance with Section 2 will be determined as of the date of death and not as of the date of Termination or any other date. 
  
 6. Limited Transferability of Options. 
 Except as provided in the Plan, the Options are not transferable. 
  
 7. Rights as a Stockholder. 
 Neither the Optionee nor any Award
Transferee will have any right as a stockholder with respect to the shares of Common Stock subject to the Options until the Company issues a stock certificate to the Optionee or the Award Transferee for the shares of Common Stock acquired upon
exercise of the Options in accordance with this Agreement. If the record date for any dividend or distribution precedes the Company’s issuance of a stock certificate for shares of Common Stock acquired upon exercise of the Options in accordance
with this Agreement, the Optionee or the Award Transferee will not be entitled to the dividend or distribution with respect to the shares of Common Stock represented by the stock certificate. 
  
 8. Forfeiture of Options. 
 The Optionee will forfeit all unexercised Options if (a) in the opinion of the Committee, the Optionee without the written consent of the Company engages directly or
indirectly in any manner or capacity as principal, agent, partner, officer, director, employee or otherwise, in any business or activity competitive with the business conducted by the Company or any of its subsidiaries, or (b) the Optionee
performs any act or engages in any activity that in the opinion of the Chief Executive Officer of the Company is inimical to the best interests of the Company. 
  

9. Other Restrictions. 
 The exercise of the Options is
subject to the requirement that, if at any time the Committee determines that any one or more of the following is a reasonably necessary or desirable condition to exercise of the Options: 
 a. the listing, registration or qualification of the shares of Common Stock subject to the Options upon any securities exchange or in accordance with any applicable law, 
 b. the consent or approval of any governmental authority, or 
 c. the
Optionee’s agreement to dispose of shares of Common Stock acquired pursuant to exercise of the Options in accordance with applicable law, 

 then any exercise of the Options will not be effective until all of the conditions so determined by the Committee are met. 
  

	10.	Taxes and Withholding. 

 a. The Optionee will pay to the
Company, or make arrangements satisfactory to the Committee regarding payment of, any federal, state, or local income taxes required by law to be withheld upon the exercise of the Options (“Taxes”). The Company will, to the
extent permitted or required by law, have the right to deduct all Taxes from any payment of any kind otherwise due to the Optionee. 
 b. Subject to the rules
and regulations of the Securities and Exchange Commission in effect from time to time, the Optionee may satisfy the Optionee’s obligation to pay Taxes by requesting that the Company withhold, from the shares of Common Stock to be delivered to
the Optionee upon each exercise of the Options, a number of shares having a Fair Market Value equal to the amount of the Taxes. 
  

	11.	Effect of Agreement. 

 This Agreement will be binding upon
and will inure to the benefit of any successor or successors of the Company. 
  

	12.	Conflicts and Interpretation. 

 a. Except as provided in this
Section 12, as to each Option Grant this Agreement and the Grant Document for the Option Grant are the entire agreement of the Company concerning the subject matter of this Agreement and the Grant Document. 
 b. The following rules of interpretation apply: 
 (i) If this Agreement and a
Grant Document are silent about any matter, the Plan governs. 
 (ii) If a Grant Document conflicts with this Agreement or the Plan, the Grant Document
governs. 
 (iii) If a Grant Document is silent about any matter and the Agreement conflicts with the Plan, the Agreement governs. 
 (iv) If a Grant Document is ambiguous, this Agreement governs unless this Agreement is ambiguous or silent, in which event the Plan governs. 
 (v) The headings of sections are included solely for convenience of reference and will not affect the meaning or interpretation of this Agreement. 
  
 13. Amendment. 
 This Agreement may not be modified, amended, or waived in any manner except in writing signed by the Company and the Optionee. The waiver by the Company or the Optionee of compliance with any provision of this
Agreement will not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach of a provision of this Agreement. 
  

14. Administration. 
 The authority to manage
and control the operation and administration of this Agreement will be vested in the Committee. The Committee will have all powers with respect to this Agreement as it has with respect to the Plan. Any interpretation of the Agreement by the
Committee and any decision made by it with respect to the Agreement is final and binding on all persons. 
  
 15. Adjustments for Pooling-of-Interests Accounting. 
 If the Company enters into a transaction
that is intended to be accounted for using the pooling-of-interests method of accounting but the Board of Directors determines that all or any part of the Options could reasonably be expected to preclude such treatment, the Board of Directors may
modify (to the extent required) or revoke (if necessary) the Options or any part. 
  
 16. Governing Law. 
 Tennessee law will govern the interpretation, performance, and enforcement of this Agreement.

  
 Saks Incorporated 

  

 2Employment Agreement, dated May 13th, 2005

 Exhibit 10.30 
  
 Employment Agreement 
  
 May 13, 2005 
  
 This Employment Agreement (this “Agreement”) is between Saks Incorporated (“SKS”) and its subsidiaries
listed on the signature page of this Agreement and Kevin Wills (the “Executive”). 
  
 Terms and Conditions 
  
 The parties to this Agreement agree as follows: 
  
 1. Employment. 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 of
Finance and Chief Accounting Officer or in such other capacity 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. 
  
 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. 
  
 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 no less than $425,000 per year (“Base
Salary”). Base Salary will be paid in installments in accordance with the Company’s normal payment schedule. 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 a yearly cash bonus based on personal performance objectives to be determined annually by the Human Resources/Option Committee of the Board of Directors. The bonus for achievement of personal
performance objectives at the target level will be 40% 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. SKS’s Amended and Restated 1994 Long-Term Incentive Plan (the “1994 Plan”), its 1997 Amended and Restated Stock-Based Incentive Plan (the “1997 Plan”), and its 2004
Long-Term Incentive Plan (the “2004 Plan” and together with the 1994 Plan and the 1997 Plan, the “Plans”) each will govern 

  

 
the vesting of awards made to the Executive in accordance with such plan if a “Change in Control” as defined in such plan occurs. 
  
 (d) Restricted Stock Award. Subject to the terms and
conditions of the 2004 Plan, the Company awards to the Executive 20,000 shares of Restricted Stock pursuant to the 2004 Plan, 10,000 shares of which will vest on May 11, 2007 and the remaining 10,000 shares of which will vest on May 11,
2008. The award is subject to the following additional conditions: (i) approval by the Human Resources/Option Committee of the Board of Directors or by the Company’s Chief Executive Officer in accordance with authority delegated by the
Committee; (ii) the Executive’s execution and delivery to the Company of a restricted stock agreement in form and substance reasonably satisfactory to the Company; and (iii) with respect to the 10,000 shares that vest on May 11,
2007 the Executive must be continuously employed by the Company to that date and with respect to the 10,000 shares that vest on May 11, 2008 the Executive must be continuously employed by the Company to that date. 
  
 (e) Retention Bonus. The Company confirms that the
retention bonus letter dated April 29, 2005 (the “Retention Letter”) delivered to the Executive is in full force and effect. If the Company adopts a retention bonus program that provides for benefits that are more
lucrative in any material respect than the benefits provided in the Retention Letter, then the Company will make the more lucrative benefits available to the Executive in lieu of the benefits payable in accordance with the Retention Letter, which in
that event will terminate. 
  
 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. 
  
 5. Termination Without Cause Or For Good Reason; Death; Disability. 
  
 (a) Termination Without Cause. The Company may terminate this Agreement at any time without Cause, and the Executive may terminate
this Agreement at any time for Good Reason, in either case upon ten days’ prior written notice to the other. “Good Reason” means (i) at any time the Executive’s principal place of employment is relocated from
the Birmingham, Alabama area, (ii) in anticipation of, or on or after, a Change in Control (as defined in the 2004 Plan), the Executive’s duties or status are reduced; or (iii) the Executive terminates the Executive’s employment
at any time following the first anniversary of a Change in Control. Upon termination of the Executive’s employment in accordance with this subsection (a), this Agreement will terminate except for subsection (b) of this section and section
8, each of which will continue in effect in accordance with its terms. 
  
 (b) Payments and Benefits Upon Termination. Subject to the next sentence, if the Executive’s employment is terminated as described in subsection (a) of this section, the Company will pay, and otherwise make
available, to the Executive the severance benefits, in addition to all earned but unpaid wages, described in paragraphs (i) through (iii) of this subsection (b). The Company’s obligation to pay, and otherwise make available to, the
Executive the severance benefits described in paragraphs (i) through (iii) of this subsection (b) is subject to subsections (c) and (d) of this section and the Company’s receipt of a written release, 

  

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in form and substance reasonably satisfactory to the Company, executed and delivered by the Executive in which the Executive releases the Company and its
affiliates from all claims of, and liabilities and obligations to, the Executive arising out of this Agreement. 
  
 (i) (A) If termination occurs prior to, and not in anticipation of, a Change in Control, an amount equal to two times the Executive’s Base
Salary paid in monthly installments of Base Salary at the rate in effect at the time of termination and (B) if termination occurs in anticipation of, or on or after, a Change in Control, an amount equal to the sum of (x) three times the
Executive’s Base Salary and (y) the Executive’s target bonus potential amount for the fiscal year during which the Change in Control occurs multiplied by a fraction the numerator of which is the number of days elapsed during the
fiscal year to and including the effective date of the Change in Control and the denominator of which is 365, the applicable amount determined in clause (A) or (B) of this paragraph (the “Severance Payment”) to be
paid in a lump sum within five days after the date of termination; 
  
 (ii) To the extent permitted by the 1994 Plan, the 1997 Plan, and the 2004 Plan, immediate vesting of all stock options, performance share awards, and restricted stock awards; and 
  
 (iii) If termination occurs in anticipation of, or on or after, a Change in
Control, participation at no cost to the Executive in the Company’s health plans, with family coverage, for three years from the date of termination. 
  
 (c) 2000 Plan. 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 that would be payable in accordance with subsection (b) of this section, then only in that circumstance and solely for purposes of 2000 Plan the Executive will not be entitled to the Severance Payment in accordance with this
section and this Agreement will not constitute an Existing Program as defined in the 2000 Plan. 
  
 (d) Engagement in Association. 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), the Company’s obligation to make the Severance Payment in accordance with this section will immediately terminate. 
  
 (e) 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 the Company’s stock option plan under which the unexercised stock options were granted, (ii) other entitlements under
this Agreement that expressly survive death, and (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. 
  

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 (f) Disability. If Executive becomes disabled at any time during the term of this
Agreement, the Executive will after the Executive becomes disabled continue to receive all payments and benefits provided under the terms of this Agreement for twelve months. The Executive will be deemed to be disabled when the Executive becomes
entitled to receive disability benefits under the Company’s Long-Term Disability Plan. 
  
 6. Severance Payment Gross Up. 
  
 (a) Amount of Gross-up Payment. If at any time: 
  
 (i) the Severance Payment or other payment or distribution by the Company to the Executive or for the Executive’s benefit (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) (all payments together are referred to as the “Subject
Payments”) would be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended, or imposed by any comparable statute having a similar effect (together, “Section
4999”), or 
  
 (ii) the Executive incurs any
interest or penalties with respect to the excise tax imposed by Section 4999 (the excise tax imposed by Section 4999, together with related interest and penalties, are together referred to as the “Excise Tax”),

  
 then, subject to the other subsections of this section 6, the Company will
make an additional payment or payments to the Executive (together, the “Gross-Up Payment”) in a total amount such that after the Executive’s payment of all taxes (and related interest or penalties), including without
limitation (i) all income taxes (and related interest and penalties) and (ii) the Excise Tax imposed upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Subject
Payments. 
  
 (b) Calculations; When Paid.
Subject to the next sentence, all determinations and calculations required to be made under this section from time to time will be made by a national independent accounting firm selected by the Executive (the “Selected
Firm”), and the Company will cause the determinations and calculations to be made and delivered to the Executive within ten days after the termination of employment at the Company’s expense. If the Selected Firm is serving as
accountant or auditor for, or otherwise as consultant to, the individual, entity, or group effecting the Change in Control, all determinations and calculations required to be made under this section from time to time will be made by another national
independent accounting firm, selected by the Executive in the Executive’s sole discretion, within ten days after the termination of employment at the Company’s expense. The Selected Firm or the other accounting firm selected by the
Executive in accordance with this subsection is referred to in this section as the “Accounting Firm.” Any Gross-Up Payment will be paid by the Company to the Executive within ten days after receipt by the Executive of the
Accounting Firm’s determination. Subject to subsection (b) of this section, any determination by the Accounting Firm will be binding upon the Company and the Executive in the absence of obvious error. 
  

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 (c) Recalculations. If after the payment of the Gross-Up Payment the Company
exhausts its remedies described in subsections (c) and (d) of this section 6 and the Executive is required to make a payment of Excise Tax in an amount that is greater than the amount that the Accounting Firm assumed the Executive would be
required to pay at the time of calculation of the Gross-up Payment, the Accounting Firm will recalculate the Gross-Up Payment. If the recalculated Gross-Up Payment is greater than the amount of Gross-Up Payment paid to the Executive by the Company
in accordance with paragraph (b) of this section, the Company will pay the Executive an amount equal to the difference within ten days of receipt of the Accounting Firm’s recalculation. 
  
 (d) IRS Claims. The Executive will give the Company
written notice of any claim by the Internal Revenue Service (within ten days after the Executive receives the claim) that, if successful, would require the Company to make a Gross-Up Payment to the Executive. Not later than ten days prior to the
response date indicated in the claim notice from the Internal Revenue Service, the Company will give the Executive written notice whether the Company intends to contest the claim. If the Company tells the Executive that it intends to contest the
claim, the Executive will (i) not pay the claim until the Company directs the Executive otherwise and (ii) fully cooperate in good faith with the Company concerning the claim, including without limitation accepting legal representation by
a lawyer chosen by the Company in the exercise of its reasonable discretion and allowing the Company to participate in the claim proceedings. The Company will pay directly all costs and expenses (including additional interest and penalties) incurred
in, or as a result of, the contest and will indemnify and hold the Executive harmless, on an after-tax basis, from all Excise Tax and income tax (and related interest and penalties) imposed as a result of the representation and payment of costs and
expenses. 
  
 (e) The Company to Control Proceedings.
The Company will in good faith control all proceedings taken in the contest that directly relate to issues with respect to which a Gross-Up Payment would be payable. The Company 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 will prosecute the contest in good faith as the Company may reasonably request. If the Company directs the Executive to pay the claim and sue for a
refund, the Company 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 any Excise Tax or income tax (and related interest or penalties)
imposed as a result of the advance or on any related imputed income. Any extension of the statute of limitations relating to the Executive’s taxable year will be limited solely to the amount contested in accordance with this subsection. The
Company’s control of the contest will be limited to issues with respect to which a Gross-Up Payment would be payable, and the Executive may settle or contest all other issues as the Executive may determine in the Executive’s sole
discretion. 
  
 7. 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, bonus, or Severance Payment, or other benefit (except as
required by law) will be paid, or made available, to the Executive 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 
  

 5 

 
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; or (iii) the Executive’s continual and material breach of the Executive’s
obligations under Section 2 of this Agreement as determined by the Human Resources/Option Committee of the Board of Directors 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 7 will not terminate the Executive’s obligations under Section 8 of this
Agreement. 
  
 8. Protection of the Company’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 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. 
  

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 (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; 
  
 (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) Directly or indirectly 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; 
  

 7 

 (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 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 each of Federated Department Stores, Inc., The May Department Stores Company, Dillard’s, Inc., Kohl’s Corporation, Belk, Inc., Limited Brands, Inc., J. C. Penney Co, Inc., Sears, Roebuck and
Co., Kmart Holding Corporation, Target Corporation, 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. 
  
 (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 
  

 8 

 
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 violation or any continuing violation. The Executive also agrees that the Company will be entitled to seek 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 Company agrees that 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 Plans, 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 the Company, 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 the Company is inimical to the best interests of the Company. 
  
 (viii) If within six months following the Executive’s termination of
employment the Executive, without the written consent of the Company, engages directly or indirectly in an association that constitutes an Association, the Executive will be required to pay to the Company an amount in cash equal to the sum of the
following: (i) with respect to awards made under the Plans 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 Plans 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. 
  
 (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

  

 9 

 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. 
  

			
	 If to the Executive:
	  	Kevin Wills
	 	  	750 Lakeshore Parkway
	 	  	Birmingham, Alabama 35211
		
	 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 the employment agreement dated February 14, 2003, under which all of Executive’s rights 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 Executive agrees to resign 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 agrees to return to
the Company upon such termination any of the following which contain 
  

 10 

 
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, 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;
Transferability of Obligations. This Agreement is binding upon the Company and its successors (including without limitation by merger or 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. The Company will have the unrestricted right to transfer its obligations under this Agreement with respect to the Executive to any person, including without
limitation to any purchaser of all or any part of the Company’s business. 
  
 (h) Indemnification. The Company will indemnify and hold harmless the Executive from and against all threatened, pending, and completed civil, criminal, administrative, and investigative actions,
suits, and proceedings to maximum extent permitted by the Tennessee Business Corporation Act, the Company’s Amended and Restated Charter, and the Company’s Amended and Restated Bylaws. 
  
 (i) Governing Law. This Agreement will be governed by
and construed in accordance with the laws of the State of Tennessee. 
  
 [Signatures on the next page] 
  

 11 

			
	Saks Incorporated
		
	By:	 	 /S/  CHARLES J. HANSEN

	 Charles J. Hansen
 Executive Vice President and
 General Counsel
  
 Carson Pirie Holdings, Inc., Herberger’s Department Stores, LLC, McRae’s of Alabama, Inc., McRae’s Stores Partnership, McRae’s Stores Services, Inc.,
McRIL, LLC, McRae’s, Inc., Parisian, Inc., PMIN General Partnership, Saks & Company, and New York City Saks, LLC
  

		
	By:	 	 /S/    CHARLES J.
HANSEN

	 Charles J. Hansen
 Executive Vice President

			
	
	 /S/    KEVIN
WILLIS

	Kevin Wills

  
  

 12

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