**EXHIBIT 10.37**

 

**AMENDMENT TO THE**

**MANAGEMENT STOCKHOLDERS’ AGREEMENT**

 

ThisAmendment to the Management Stockholders’ Agreement (the “Amendment”) is madeeffective as of January 1, 2009, by and between Neiman Marcus, Inc.,a Delaware corporation (formerly known as Newton Acquisition, Inc.) (the “Company”),the Majority Stockholders (as listed on Schedule A) and the ManagementStockholders (as listed on Schedule B).

 

W I T N E S S E T H:

 

WHEREAS,the Company, the Majority Stockholder and the Management Stockholder enteredinto the Management Stockholders’ Agreement (the “Agreement”) effective as of October 6,2005; and

 

WHEREAS,the Company, the Majority Stockholder and the Management Stockholder now desireto amend the Agreement for compliance with Internal Revenue Code Section 409Aand the Treasury Regulations thereunder, and to make certain other changes;

 

NOW,THEREFORE, pursuant to the authority reserved in Section 9, the Agreementis amended as follows:

 

1.             The Agreement is hereby amended such that theterm “Company” shall mean Neiman Marcus, Inc.

 

2.             Section 1(j) of the Agreement ishereby amended and restated in its entirety as follows:

 

(j)            “Fair MarketValue” shall mean, as of any date:

 

i.              for Common Stock not readilytradable on an established securities market (as determined in accordance withTreas. Reg. §§ 1.409A-1(b)(5)(vi)(G) and 1.409A-1(k)), the value per shareof Common Stock as determined in good faith by the Board and based upon thereasonable application of a reasonable valuation method in accordance withTreas. Reg. § 1.409A-1(b)(5)(iv)(B); or

 

ii.             for Common Stock readily tradableon an established securities market (as determined in accordance with Treas.Reg. §§ 1.409A-1(b)(5)(vi)(G) and 1.409A-1(k)), (i) the closing priceon such day of a share of Common Stock as reported on the principal securitiesexchange on which shares of Common Stock are then listed or admitted to tradingor (ii) if not so reported, the average of the closing bid and ask priceson such day as reported on the National Association of Securities DealersAutomated Quotation System or (iii) if not so reported, as furnished byany member of the National Association of Securities Dealers, Inc. (“NASD”)selected by the Board.  The Fair Market Value of a share of Common Stockas of any such date on which the applicable exchange or inter-dealer quotationsystem through which trading in the Common Stock regularly occurs is closedshall be the Fair Market Value determined pursuant to the preceding sentence asof 

 

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the immediately precedingdate on which the Common Stock is traded, a bid and ask price is reported or atrading price is reported by any member of NASD selected by the Board.  Inthe event that the price of a share of Common Stock shall not be so reported orfurnished, the Fair Market Value shall be determined in good faith by the Boardand based upon any other reasonable method using actual transactions in suchCommon Stock as reported by any member of NASD selected by the Board.  However, the Fair Market Value of CommonStock readily tradable on an established securities market shall in all events bedetermined in a manner which satisfies the requirements of Treas. Reg. §1.409A-1(b)(5)(iv)(A).

 

The right to an OutsideAppraisal provided for in Sections 3(b)(ii) and 3(c)(ii) shall notapply to Common Stock readily tradable on an established securities market.

 

3.             Except as otherwise specifically set forthherein, all other terms and conditions of the Agreement shall remain in fullforce and effect.

 

IN WITNESS WHEREOF, theparties hereto have caused this Amendment to be executed on this the 10th day of December, 2008.

 
| ** ** | ** ** | ** ** | ** ** | **NEIMAN MARCUS, INC.**         |
|------------|------------|------------|------------|---------------------------------|
|       |       |       |       |                            |
|       |       |       |       |                            |
|       | By:        |       |       | /s/  Nelson A.  Bangs |
|       | Name:      |       |       | Nelson A. Bangs                 |
|       | Title:     |       |       | Senior Vice President           |

 

2

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**SCHEDULE A**

**MAJORITYSTOCKHOLDERS**

 
| ** ** | ** ** | ** ** | ** ** | **NEWTON HOLDING, LLC**                                   |
|------------|------------|------------|------------|-----------------------------------------------------------|
| ** ** | ** ** | ** ** | ** ** | ** **                                                |
| ** ** | ** ** | ** ** | ** ** | ** **                                                |
|       | By:        |       |       | /s/ Clive Bode                                            |
|       | Title:     |       |       | Partner and General  Counsel                              |
| ** ** | ** ** | ** ** | ** ** | ** **                                                |
| ** ** | ** ** | ** ** | ** ** | **TPG NEWTON III LLC**                                    |
|       | By:        |       |       | **TPG  Partners III, L.P., its Managing  Member**         |
|       | By:        |       |       | **TPG GenPar III, L.P., its  General Manager**            |
|       | By:        |       |       | **TPG Advisors III, Inc.,  its General Partner**     |
| ** ** | ** ** | ** ** | ** ** | ** **                                                |
| ** ** | ** ** | ** ** | ** ** | ** **                                                |
|       | By:        |       |       | /s/  Clive Bode                                 |
|       | Title:     |       |       | Partner and General  Counsel                              |
| ** ** | ** ** | ** ** | ** ** | ** **                                                |
| ** ** | ** ** | ** ** | ** ** | **TPG PARTNERS IV, L.P.**                                 |
|       | By:        |       |       | **TPG GenPar IV, L.P., its  General Partner**             |
|       | By:        |       |       | **TPG Advisors III, Inc.,  its General Partner**     |
| ** ** | ** ** | ** ** | ** ** | ** **                                                |
| ** ** | ** ** | ** ** | ** ** | ** **                                                |
|       | By:        |       |       | /s/  Clive Bode                                 |
|       | Title:     |       |       | Partner and General  Counsel                              |
| ** ** | ** ** | ** ** | ** ** | ** **                                                |
| ** ** | ** ** | ** ** | ** ** | **TPG NEWTON CO-INVEST I LLC**                            |
|       | By:        |       |       | **TPG GenPar IV, L.P., its  Managing Member**             |
|       | By:        |       |       | **TPG Advisors IV, Inc., its  General Partner**      |
| ** ** | ** ** | ** ** | ** ** | ** **                                                |
| ** ** | ** ** | ** ** | ** ** | ** **                                                |
|       | By:        |       |       | /s/  Clive Bode                                 |
|       | Title:     |       |       | Partner and General  Counsel                              |
| ** ** | ** ** | ** ** | ** ** | ** **                                                |
| ** ** | ** ** | ** ** | ** ** | **WARBURG PINCUS PRIVATE**                                |
| ** ** | ** ** | ** ** | ** ** | **EQUITY VIII, L.P.**                                     |
|       | By:        |       |       | **Warburg  Pincus Partners, LLC, its  General Partner**   |
|       | By:        |       |       | **Warburg Pincus & Co.,  its Managing Partner**  |
| ** ** | ** ** | ** ** | ** ** | ** **                                                |
| ** ** | ** ** | ** ** | ** ** | ** **                                                |
|       | By:        |       |       | /s/  Kewsong Lee                                |
|       | Title:     |       |       |                                                      |
| ** ** | ** ** | ** ** | ** ** | ** **                                                |
| ** ** | ** ** | ** ** | ** ** | **WARBURG PINCUS NETHERLANDS**                            |
| ** ** | ** ** | ** ** | ** ** | **PRIVATE EQUITY VIII  C.V.I.**                           |
|       | By:        |       |       | **Warburg  Pincus Partners, LLC, its****General Partner** |

 

3

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|       | By:        |       |       | **Warburg Pincus & Co.,  its Managing Member**   |
|------------|------------|------------|------------|-----------------------------------------------------------|
| ** ** | ** ** | ** ** | ** ** | ** **                                                |
| ** ** | ** ** | ** ** | ** ** | ** **                                                |
|       | By:        |       |       | /s/  Kewsong Lee                                |
|       | Title:     |       |       |                                                      |
| ** ** | ** ** | ** ** | ** ** | ** **                                                |
| ** ** | ** ** | ** ** | ** ** | **WARBURG PINCUS GERMANY**                                |
| ** ** | ** ** | ** ** | ** ** | **PRIVATE EQUITY VIII K.G.**                              |
|       | By:        |       |       | **Warburg  Pincus Partners, LLC, its****General Partner** |
|       | By:        |       |       | **Warburg  Pincus & Co., it Managing****Member** |
| ** ** | ** ** | ** ** | ** ** | ** **                                                |
| ** ** | ** ** | ** ** | ** ** | ** **                                                |
|       | By:        |       |       | /s/ Kewsong Lee                                           |
|       | Title:     |       |       |                                                      |
| ** ** | ** ** | ** ** | ** ** | ** **                                                |
| ** ** | ** ** | ** ** | ** ** | **WARBURG  PINCUS PRIVATE  EQUITY IX, L.P.**              |
|       | By:        |       |       | **Warburg  Pincus IX LLC, its General Partner**           |
| ** ** | ** ** | ** ** | ** ** | ** **                                                |
| ** ** | ** ** | ** ** | ** ** | ** **                                                |
|       | By:        |       |       | /s/ Kewsong Lee                                           |
|       | Title:     |       |       |                                                      |

 

4

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**SCHEDULE B**

**MANAGEMENT STOCKHOLDERS**

 
|       | By:    |       |       | /s/ Gerald A. Barnes        |
|------------|--------|------------|------------|-----------------------------|
| ** ** | Name:  | ** ** | ** ** | **Gerald A. Barnes**        |
| ** ** |   | ** ** | ** ** | ** **                  |
| ** ** | By:    | ** ** | ** ** | /s/ Steven P. Dennis        |
| ** ** | Name:  | ** ** | ** ** | **Steven P. Dennis**        |
| ** ** |   | ** ** | ** ** | ** **                  |
| ** ** | By:    | ** ** | ** ** | /s/ Jeanie Galvin           |
| ** ** | Name:  | ** ** | ** ** | **Jeanie Galvin**           |
| ** ** |   | ** ** | ** ** | ** **                  |
| ** ** | By:    | ** ** | ** ** | /s/ Ronald H. Goddard       |
| ** ** | Name:  | ** ** | ** ** | **Ronald H. Goddard**       |
| ** ** |   | ** ** | ** ** | ** **                  |
| ** ** | By:    | ** ** | ** ** | /s/ James J. Gold           |
| ** ** | Name:  | ** ** | ** ** | **James J. Gold**           |
| ** ** |   | ** ** | ** ** | ** **                  |
| ** ** | By:    | ** ** | ** ** | /s/ Neva L. Hall            |
| ** ** | Name:  | ** ** | ** ** | **Neva L. Hall**            |
| ** ** |   | ** ** | ** ** | ** **                  |
| ** ** | By:    | ** ** | ** ** | /s/ Mary V. Hershey         |
| ** ** | Name:  | ** ** | ** ** | **Mary Virginia Hershey**   |
| ** ** |   | ** ** | ** ** | ** **                  |
| ** ** | By:    | ** ** | ** ** | /s/ Brendan L. Hoffman      |
| ** ** | Name:  | ** ** | ** ** | **Brendan L. Hoffman**      |
| ** ** |   | ** ** | ** ** | ** **                  |
| ** ** | By:    | ** ** | ** ** | /s/ Wayne A. Hussey         |
| ** ** | Name:  | ** ** | ** ** | **Wayne A. Hussey**         |
| ** ** |   | ** ** | ** ** | ** **                  |
| ** ** | By:    | ** ** | ** ** | /s/ Jonathan Joselove       |
| ** ** | Name:  | ** ** | ** ** | **Jonathan Joselove**       |
| ** ** |   | ** ** | ** ** | ** **                  |
| ** ** | By:    | ** ** | ** ** | /s/ Karen W. Katz           |
| ** ** | Name:  | ** ** | ** ** | **Karen W. Katz**           |
| ** ** |   | ** ** | ** ** | ** **                  |
| ** ** | By:    | ** ** | ** ** | /s/ Lisa M. Kazor           |
| ** ** | Name:  | ** ** | ** ** | **Lisa M. Kazor**           |
| ** ** |   | ** ** | ** ** | ** **                  |
| ** ** | By:    | ** ** | ** ** | /s/ Steven Kornajcik        |
| ** ** | Name:  | ** ** | ** ** | **Steven Kornajcik**        |
| ** ** |   | ** ** | ** ** | ** **                  |
| ** ** | By:    | ** ** | ** ** | /s/ Thomas Lind             |
| ** ** | Name:  | ** ** | ** ** | **Thomas Lind**             |
| ** ** |   | ** ** | ** ** | ** **                  |
| ** ** | By:    | ** ** | ** ** | /s/ Marita O’Dea Glodt |
| ** ** | Name:  | ** ** | ** ** | **Marita O’Dea Glodt** |

 

5

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| ** ** | By:    | ** ** |   | /s/ Ann S. Paolini                                 |
|------------|--------|------------|--------|----------------------------------------------------|
| ** ** | Name:  | ** ** |   | **Ann S. Paolini**                                 |
| ** ** |   | ** ** |   | ** **                                         |
| ** ** | By:    | ** ** |   | /s/ J. Russell Patrick                             |
| ** ** | Name:  | ** ** |   | **John Russell Patrick**                           |
| ** ** |   | ** ** |   | ** **                                         |
| ** ** | By:    | ** ** |   | /s/ Gregory G. Shields                             |
| ** ** | Name:  | ** ** |   | **Gregory G. Shields**                             |
| ** ** |   | ** ** |   | ** **                                         |
| ** ** | By:    | ** ** |   | /s/ Stacie R. Shirley                              |
| ** ** | Name:  | ** ** |   | **Stacie R. Shirley**                              |
| ** ** |   | ** ** |   | ** **                                         |
| ** ** | By:    | ** ** |   | /s/ James E. Skinner                               |
| ** ** | Name:  | ** ** |   | **James E. Skinner**                               |
| ** ** |   | ** ** |   | ** **                                         |
| ** ** | By:    | ** ** |   | /s/ Margaret E. Spaniolo                           |
| ** ** | Name:  | ** ** |   | **Margaret E. Spaniolo**                           |
| ** ** |   | ** ** |   | ** **                                         |
| ** ** | By:    | ** ** |   | /s/ Thomas P. Stangle                              |
| ** ** | Name:  | ** ** |   | **Thomas P. Stangle**                              |
| ** ** |   | ** ** |   | ** **                                         |
| ** ** | By:    | ** ** |   | /s/ T. Dale Stapleton                              |
| ** ** | Name:  | ** ** |   | **T. Dale Stapleton**                              |
| ** ** |   | ** ** |   | ** **                                         |
| ** ** | By:    | ** ** |   | /s/ Ann Stordahl                                   |
| ** ** | Name:  | ** ** |   | **Ann Stordahl**                                   |
| ** ** |   | ** ** |   | ** **                                         |
| ** ** | By:    | ** ** |   | /s/ Burton M. Tansky                               |
| ** ** | Name:  | ** ** |   | **Burton M. Tansky**                               |
| ** ** |   | ** ** |   | ** **                                         |
| ** ** | By:    | ** ** |   | /s/ Kim Yee                                        |
| ** ** | Name:  | ** ** |   | **Kim Yee**                                        |
| ** ** |   | ** ** |   | ** **                                         |
| ** ** |   | ** ** |   | **TANSKY  2007 CHILDREN AND  GRANDCHILDREN TRUST** |
| ** ** |   | ** ** |   | ** **                                         |
| ** ** | By:    | ** ** |   | /s/ Eva T. Blum                                    |
| ** ** | Name:  | ** ** |   | **Eva T. Blum, Trustee**                           |
| ** ** |   | ** ** |   | ** **                                         |
| ** ** |   | ** ** |   | **KATZ 2008 IRREVOCABLE TRUST**                    |
| ** ** |   | ** ** |   | ** **                                         |
| ** ** | By:    | ** ** |   | /s/ Mary Ann Mihalopoulos                          |
| ** ** | Name:  | ** ** |   | **Mary Ann Mihalopoulos, Trustee**                 |

 

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