SAKS INC
THIRD AMENDMENT TO THE SAKS INCORPORATED DEFERRED COMPENSATION PLAN
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<TYPE>EX-10.17.3
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<DESCRIPTION>THIRD AMENDMENT TO THE SAKS INCORPORATED DEFERRED COMPENSATION PLAN
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B>Exhibit 10.17.3 </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2">THIRD AMENDMENT </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">TO THE </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2">SAKS INCORPORATED DEFERRED COMPENSATION PLAN </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">(as amended and restated effective May&nbsp;1, 2002)
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><I>December&nbsp;21, 2006 </I></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">The Saks Incorporated Deferred Compensation Plan (the &#147;Plan&#148;) is hereby amended, effective December&nbsp;1, 2006, as follows: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT FACE="Times New Roman"
SIZE="2">Section&nbsp;4.04 is amended by adding the following at the end of the section: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT FACE="Times New Roman" SIZE="2">In addition, the following amounts shall be
credited to a Participant&#146;s Deferred Compensation Account as &#147;Other Employer Amounts&#148;: </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="5%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(a)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">For Plan Years beginning on or after January&nbsp;1, 2006, amounts that would have been contributed on behalf of the Participant to the Saks Incorporated 401(k) Retirement Plan as
Supplemental Company Contributions (as defined in such plan), but for the fact that the Participant did not qualify for such contributions under such plan because he was a Highly Compensated Employee (as defined in such plan) for the Plan Year.
</FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="5%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(b)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">For Plan Years beginning on or after January&nbsp;1, 2007, amounts that would have been allocated to the Participant&#146;s Cash Balance Account in the Saks Fifth Avenue Pension
Plan as Benefit Credits (as defined in such plan), but for the fact that the Participant did not qualify for such allocations under such plan because he was a Highly Compensated Employee (as defined in such plan) for the Plan Year.
</FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT FACE="Times New Roman" SIZE="2">Other Employer Amounts shall be fully vested at all times. </FONT></P> <P
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<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">SAKS INCORPORATED</FONT></TD></TR>
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<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">Charles Hansen</FONT></P></TD></TR>
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<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Title:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Executive Vice President and General Counsel</FONT></TD></TR>
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