Document:

Form of Amendment to Employment Agreement for Executive Officers

 Exhibit 10.40 
 Amendment to Employment Agreement 
 This Amendment to the Employment
Agreement (the “Agreement”), dated as of                     , between
                     (the “Executive”) and Saks Incorporated (the “Company”) is entered into as of December
    , 2008 by the Company and the Executive. 
 Capitalized terms used in this Amendment, but not defined shall have the
same meaning ascribed to them in the Agreement. 
 Recitals 

WHEREAS, the Company believes that it is in the best interests of the Company and the Executive to clarify how the payments would
be reduced under Section 11(a) of the Agreement; 
 WHEREAS, the Company has caused this Amendment to the Employment
Agreement (the “Amendment”), which clarifies how the payments would be reduced under Section 11(a) of the Agreement, to be prepared; and 
 WHEREAS, the Company and the Executive have determined that it would be in the best interest of the Company and the Executive to adopt this Amendment. 

WHEREAS, Section 13(c) of the Agreement requires that any modification of the Agreement be in writing signed by both parties
to the Agreement in order to be effective. 
 NOW THEREFORE, the parties agree to amend the Employment Agreement,
effective December 3, 2008, as follows: 
 Section 11(a) of the Agreement is hereby deleted and replaced in its
entirety with the following: 
 (a) “Amount of Gross-Up Payment. Anything in this Agreement to the
contrary notwithstanding, if any payment or distribution by the Company 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 11) (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 Section 11(a), the
Company 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 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 11(a) only if the Executive’s “parachute payments” (as such term is defined in Section 280G of the Code) exceed three hundred thirty percent (330%) 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 excise tax imposed by Section 4999 of the Code and that the Company could pay to the Executive without loss of deduction under Section 280G(a) of the Code.

 The reduction of the amounts payable to the Executive, if applicable, shall be made in the following order: (1) by first
eliminating the acceleration of vesting of any stock options for which the exercise price exceeds the then fair market value (and if there is more than one option award so outstanding, then the acceleration of the vesting of the most “under
water” option shall be reduced first and so on); (2) second, by eliminating the acceleration of vesting of any stock appreciation rights that are subject to time based vesting for which the exercise price exceeds the then fair market value
(and if there is more than one such stock appreciation right so outstanding, then the acceleration of the vesting of the most “under water” stock appreciation right shall be reduced first and so on); (3) third, by reducing the
payments of any stock appreciation rights, restricted stock, restricted stock units, phantom shares, performance share units, performance shares or other similar equity based awards that have been awarded to the Executive by the Company that are
subject to performance based vesting (and if there be more than one such award held by Executive, by reducing the awards in the reverse order of the date of their award, with the most recently awarded reduced first and the oldest award reduced
last); (4) fourth, by reducing any cash payments not subject to Code section 409A; (5) fifth, by reducing any benefit continuation payments (and if there be more than one such payment, by reducing the payments in reverse order, with the
payments made the earliest being reduced first); (6) sixth, by reducing cash payments that are subject to Code section 409A; (7) seventh, by reducing the payments of any restricted stock, restricted stock units, phantom shares or other
similar equity based awards that have been awarded to the Executive by the Company that are subject to time based vesting (and if there be more than one such award held by Executive, by reducing the awards in the reverse order of the date of their
award, with the most recently awarded reduced first and the oldest award reduced last); (8) eighth, by reducing the acceleration of vesting of any stock options that are not described in (1) above; and (9) ninth, by reducing the
acceleration of vesting of any stock appreciation rights that are not described in (2) or (3) above.” 
 The
Executive hereby waives any notice requirement provided for under the Agreement and agrees that the Company’s failure to comply with any such requirements with respect to this Amendment will not affect the validity thereof. 

  
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 Except as expressly modified herein, all other terms of the Agreement shall remain in full
force and effect. 

  
 3 

 In witness whereof, each of the Company and the Executive has executed this Amendment to be effective as of
the date indicated above. 
  

			
	SAKS INCORPORATED
		
	By:	 	  

		 	Name:
		 	Title:

  

			
		 	 
		 	[Executive]

  
 4Form of Amendment to Employment Agreement for Executive Officers

 Exhibit 10.41 
 DRAFT – For Discussion Purposes Only 
 Employment Agreement Form “A1”

 AMENDMENT 
 TO THE 
 EMPLOYMENT AGREEMENT 

BY AND BETWEEN 
 SAKS INCORPORATED AND 
 [EXECUTIVE] 

THIS AMENDMENT TO THE EMPLOYMENT AGREEMENT (the “Amendment”) is entered into as of [•], 2010, by and between [EXECUTIVE]
(the “Executive”) and Saks Incorporated (the “Company”). 
 Capitalized terms used herein which are not otherwise defined
have the same meaning as in the Employment Agreement. 
 WITNESSETH: 

WHEREAS, the Company and the Executive have previously entered into that certain Employment Agreement dated [•] (the
“Original Agreement”), as previously amended by the Amendment to Employment Agreement, dated as of [•] (the “First Amendment”) and the Amendment to Employment Agreement dated as of [•] (the “Second Amendment,”
and collectively with the Original Agreement and the First Amendment, the “Employment Agreement”); 
 WHEREAS,
it is necessary to amend the Employment Agreement to bring it into compliance with Internal Revenue Code Section 409A and the final Treasury Regulations issued thereunder; and 

WHEREAS, the Company and Executive believe it is in the best interest of the Company and the Executive to adopt this Amendment.

 NOW, THEREFORE, BE IT RESOLVED, that effective as of [•], 2010, the Employment Agreement is amended as follows:

  

	1.	The first paragraph of Section 4(a)(ii) of the Employment Agreement is deleted in its entirety and the following shall be substituted in its place:

 “(ii) Provided that the Executive has executed and delivered to the Company, and has not revoked, the
general release in substantially the form attached hereto as Attachment A (the “Release”) by the [fiftieth (50)] day following the Employment Termination Date, the Company shall make the following payments and shall provide the following
benefits, provided that if the Executive directly or indirectly engages in conduct that constitutes an Association (as defined in Section 12(b)(iv)(D) hereof), the Company’s obligation to make the following payments and to provide the
following benefits shall immediately terminate:” 
  

	2.	Section 4(a)(ii)(A) of the Employment Agreement is deleted in its entirety and the following shall be substituted in its place: 

“(A) except as otherwise provided in Section 10 hereof, an amount equal to the sum of
[            ] times the Executive’s Base Salary and [            ] times the Executive’s target bonus
potential amount of [    ]% of Base Salary for the fiscal year during which the Employment Termination Date occurs, which amount shall be payable in 24 equal monthly installments commencing with the month following the
month in which the sixtieth (60) day following the Employment Termination Date occurs;” 

  
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 DRAFT – For Discussion Purposes Only 

Employment Agreement Form “A1” 
  

	3.	The first paragraph of Section 4(b)(ii) of the Employment Agreement is deleted in its entirety and the following shall be substituted in its place:

 “(ii) provided that the Executive has executed and delivered to the Company, and has not revoked, the
Release by the [fiftieth (50)] day following the Employment Termination Date, the Company shall make the following payments and shall provide the following benefits, provided that if the Executive directly or indirectly engages in conduct that
constitutes an Association (as defined in Section 12(b)(iv)(D) hereof), the Company’s obligation to make the following payments and to provide the following benefits shall immediately terminate:” 

 

	4.	Section 4(b)(ii)(A) of the Employment Agreement is deleted in its entirety and the following shall be substituted in its place: 

“(A) except as otherwise provided in section 10 hereof, an amount equal to the sum of
[            ] times the Executive’s Base Salary and [            ] times the Executive’s target bonus
potential amount of [    ]% of Base Salary for the fiscal year during which the Employment Termination Date occurs, which amount shall be payable, (x) if the termination of employment occurs during the two year period
following a change in control of the Company under Section 1.409A-3(i)(5), in a lump sum, on the sixtieth (60) day following the Employment Termination Date, or (y) if the termination of employment occurs due to an event other than as
described in (x) above, in 24 equal monthly installments commencing with the month following the month in which the sixtieth (60) day following the Employment Termination Date occurs;” 

 

	5.	Section 7 of the Employment Agreement is deleted in its entirety and the following shall be substituted in its place: 

“Termination Due to Disability. If at any time prior to the termination of this Agreement the Executive shall become disabled,
this Agreement and the Executive’s employment shall continue for a period of 12 months from the date on which the Executive becomes disabled. The date on which Executive shall be deemed to have become disabled shall be the date on which either
(a) the Executive is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not
less than 12 months or (b) the Executive is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving
income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the service provider’s employer (a “Disability”). During the 12 month period following a Disability, the
Executive shall continue to receive all payments and benefits provided by this Agreement, including without limitation the benefits described in Section 3 of this Agreement, and the Executive shall remain eligible to receive, in accordance with
their respective terms, the severance and/or benefits that would be payable upon a termination of the Executive’s employment as described in Sections 4, 5, 6, 8, 9 or 11 of this Agreement, less all disability payments received pursuant to the
Company’s short-term disability/sick pay plan or its Group Long-Term Disability Insurance Policy. Notwithstanding the foregoing, during the 12 month period following a Disability, the Base Salary payable pursuant to Section 3(a) of this
Agreement shall be paid in monthly installments, and any bonus payable pursuant to Section 3(b) of this Agreement shall be paid at the time that bonuses for the fiscal year in which the 

  
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Employment Agreement Form “A1” 
  

 
Disability occurred are paid to other senior executives of the Company. If the Executive’s disability continues after the end of such 12-month period, the Company may terminate this
Agreement and the Executive’s employment for disability (“Disability Termination”). Disputes regarding the existence of the Executive’s disability shall be resolved by the determination of a physician selected by the Board who is
reasonably acceptable to the Executive. The Executive shall submit to appropriate medical examinations for purposes of determining disability. Upon a Disability Termination, the Executive shall be entitled exclusively to (a) the payments in the
amounts and at the times described in Sections 4(a)(i)(A), (B) and (C) hereof and described in Section 4(b)(ii)(B) hereof; (b) the Executive’s unexercisable stock options, unvested shares of restricted stock and unvested
performance shares shall vest as described in Section 4(b)(ii)(E) hereof; and (c) all other benefits in accordance with Section 3(d) of this Agreement that would be payable upon such Disability Termination. Upon a Disability
Termination, the Company’s obligations in Sections 11, 13(f) and 13(h) of this Agreement, and the Executive’s obligations in Sections 11, 12, and 13(h) of this Agreement, shall continue in effect in accordance with their respective
terms.” 
  

	6.	Section 10 of the Employment Agreement is amended by adding three new paragraphs to the end of the Section which shall provide as follows:

 “The Agreement is intended to comply with the requirements of Section 409A or an exemption or
exclusion therefrom and, with respect to amounts that are subject to Section 409A, shall in all respects be administered in accordance with Section 409A. Any payments that qualify for the “short-term deferral” exception or
another exception under Section 409A shall be paid under the applicable exception. Each payment of compensation under this Agreement shall be treated as a separate payment of compensation for purposes of Section 409A. All payments to be
made upon a termination of employment under this Agreement may only be made upon a “separation from service” under Section 409A. In no event may the Executive, directly or indirectly, designate the calendar year of any payment under
this Agreement. Any tax gross-up payment made pursuant to this Agreement shall be made no later than the end of Executive’s taxable year next following Executive’s taxable year in which Executive remits the related taxes. 

Notwithstanding anything to the contrary in this Agreement, all reimbursements and in-kind benefits provided under this Agreement shall be
made or provided in accordance with the requirements of Section 409A, including, where applicable, the requirement that (a) any reimbursement is for expenses incurred during the Executive’s lifetime (or during a shorter period of time
specified in this Agreement); (b) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during a calendar year may not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other
calendar year, except, if such benefits consist of the reimbursement of expenses referred to in Section 105(b) of the Code, a maximum, if provided under the terms of the plan providing such medical benefit, may be imposed on the amount of such
reimbursements over some or all of the period in which such benefit is to be provided to the Executive as described in Treasury Regulation Section 1.409A-3(i)(1)(iv)(B); (c) the reimbursement of an eligible expense will be made no later
than the last day of the calendar year following the year in which the expense is incurred, provided that the Executive shall have submitted an invoice for such fees and expenses at least ten (10) days before the end of the calendar year next
following the calendar year in which such fees and expenses were incurred; and (d) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit. 

  
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 DRAFT – For Discussion Purposes Only 

Employment Agreement Form “A1” 
  

 Notwithstanding anything to the contrary in this Agreement, payment of any amounts,
including, but not limited to, salary and bonuses, will be subject to, and payable in accordance with, any prior deferral elections made with respect to such amounts under the Company’s Deferred Compensation Plan (as amended and restated
effective January 1, 2009).” 
  

	7.	Except as expressly modified herein, all other terms of the Employment Agreement shall remain in full force and effect. 

[signature page follows] 

  
 4 

 DRAFT – For Discussion Purposes Only 

Employment Agreement Form “A1” 
  

 IN WITNESS WHEREOF, this Amendment has been duly executed as of the date and year
first above written. 
  

	
	SAKS INCORPORATED
	
	  

	By:
	
	Title:
	
	EXECUTIVE
	
	  

	[EXECUTIVE]

  
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