Saks Fifth Avenue 2008 Annual Report Download - page 177

compensation limit under Code section 401(a)(17). Such a Participant who is eligible to participate in the Plan for the given Plan
Year (whether or not actually making deferrals for the Plan Year) shall have a Lost Match Amount credited to his Deferred
Compensation Account for such Plan Year in the amount described herein, provided he is employed by a Participating Company
on the last day of the Plan Year and further provided that his total compensation exceeds the limit under Code section 401(a)(17)
for the Plan Year. The amount of the Lost Match Amount to be credited to the Participant’s Deferred Compensation Account for
a given Plan Year shall be calculated as the amount by which the Participant’s employer matching contribution in the 401(k)
Plan for such Plan Year is reduced due to the operation of the Code section 402(g) and 401(a)(17) limits, calculated based on the
Participant’s Basic Compensation net of his Elective Deferral Amounts. Provided, however, that such Lost Match Amount may
not exceed the amount permitted for such purpose under Code section 409A and the regulations thereunder. The Committee
shall have sole authority to establish rules concerning the operation of this Section.
This Section shall be effective as of January 1, 2008.
At the discretion of the Board, other amounts (as deferred compensation), if any, may be credited to a Participant’s Deferred
Compensation Account in such amount or amounts and at such time or times as the Board may in its sole discretion determine.
Any such amounts must meet the terms and conditions of Code section 409A and the regulations thereunder and shall constitute
“Other Employer Amounts” for purposes of this Plan.
Notwithstanding any provisions in the Plan to the contrary prior to the January 1, 2009, with respect to contributions, deferrals
and Investment Credits for the 2005, 2006, 2007 or 2008 Plan Year, each Participant shall be permitted to change the Class
Share and/or payout elections for existing Class Shares for such contributions, deferrals and Investment Credits; provided,
however, that such election shall be made on or before December 31, 2008. Provided, further, that any such election made in
2006 may neither specify a payment date in 2006 nor defer amounts otherwise payable in 2006, an election made in 2007 may
neither specify a payment date in 2007 nor defer amounts otherwise payable in 2007, and an election made in 2008 may neither
specify a payment date in 2008 nor defer amounts otherwise payable in 2008.
At the time each Class Share is established, the Participant shall specify in such form as may be prescribed by the Committee,
separately for each Class Share, the investment funds in which the Class Share balance shall be deemed to be invested for
purposes of adjusting such balance to reflect income, gains, losses and expenses.
As of each Valuation Date, each Class Share in the Participant’s Account will be credited with income and gains and charged
with losses, expenses and distributions equal to the amount by which the Class Share would have been credited or charged since
the prior Valuation Date (in the manner described below) had the Participant’s Class Share been invested in the investment
funds (as defined below) selected by the Participant in accordance with the Participant’s investment election. The adjustments
4.04 Other Em
p
lo
y
er Amounts.
4.05 Transitional Elections.
4.06 Investment Credits.
12/14/2008
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