Document:

dvmg_8k-ex10x13.htm

    Exhibit
10.13

     

     

    STOCK
PURCHASE AGREEMENT

     

    THIS
STOCK PURCHASE AGREEMENT (this “Agreement”), dated as
of December 8, 2009, is made by and between Golden Key International, Inc., a
Delaware corporation (“Seller”), and the
individual listed under the heading “Buyer” on the signature page
hereto  (the “Buyer”).

     

    RECITALS

     

    A.           Seller
owns all of the issued and outstanding shares of common stock (the “Shares”) of Deep
Rooted, Inc., a Delaware corporation (the “Company”), which
Shares constitute, as of the date hereof, all of the issued and outstanding
capital stock of the Company.

     

    B.           Buyer
holds 9,760,000 shares of common stock, $0.0001 par value per share, of Seller
(the “Purchase Price
Shares”), and Buyer have agreed to transfer such shares back to Seller
for cancellation (the “Repurchase”).

     

    C.           In
connection with the Repurchase, Buyer wish to acquire from Seller, and Seller
wishes to transfer to Buyer, the Shares, upon the terms and subject to the
conditions set forth herein.

     

    Accordingly,
the parties hereto agree as follows:

     

    1.           Purchase and Sale of
Stock.

     

    (a)           Purchased Shares.
Subject to the terms and conditions provided below, Seller shall sell and
transfer to Buyer and Buyer shall purchase from Seller, on the Closing Date (as
defined in Section 1(c)), all of the Shares.

     

    (b)           Purchase
Price.  The purchase price for the Shares shall be the transfer
and delivery by Buyer to Seller of the Purchase Price Shares, deliverable as
provided in Section 2(b).

     

    (c)           Closing. The closing
of the transactions contemplated in this Agreement (the “Closing”) shall take
place as soon as practicable following the execution of this
Agreement.  The date on which the Closing occurs shall be referred to
herein as the Closing Date (the “Closing
Date”).

     

    2.           Closing.

     

    (a)           Transfer of Shares.
At the Closing, Seller shall deliver to Buyer certificates representing the
Shares, duly endorsed to Buyer or as directed by Buyer, which delivery shall
vest Buyer with good and marketable title to all of the issued and outstanding
shares of capital stock of the Company, free and clear of all liens and
encumbrances.

     

    (b)  Payment of Purchase
Price. At the Closing, Buyer shall deliver to Seller a certificate or
certificates representing the Purchase Price Shares duly endorsed to Seller,
which delivery shall vest Seller with good and marketable title to the Purchase
Price Shares, free and clear of all liens and encumbrances.

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    3.           Representations and
Warranties of Seller. Seller represents and warrants to Buyer as of the
date hereof as follows:

     

    (a)           Corporate Authorization;
Enforceability. The execution, delivery and performance by Seller of this
Agreement is within the corporate powers and has been, duly authorized by all
necessary corporate action on the part of Seller. This Agreement has been duly
executed and delivered by Seller and constitutes the valid and binding agreement
of Seller, enforceable against Seller in accordance with its terms, except to
the extent that its enforceability may be subject to applicable bankruptcy,
insolvency, reorganization, moratorium and similar Laws affecting the
enforcement of creditors’ rights generally and by general equitable
principles.

     

    (b)           Governmental
Authorization. The execution, delivery and performance by Seller of this
Agreement requires no consent, approval, Order, authorization or action by or in
respect of, or filing with, any Governmental Authority.

     

    (c)           Non-Contravention;
Consents. The execution, delivery and performance by Seller of this
Agreement and the consummation of the transactions contemplated hereby do not
(i) violate the certificate of incorporation or bylaws of Seller or (ii) violate
any applicable Law or Order.

     

    (d)           Capitalization. As of
the date hereof, Seller owns the Shares, which shares represent 100% of the
authorized, issued and outstanding capital stock of the Company. The Shares are
duly authorized, validly issued, fully-paid, non-assessable and free and clear
of any Liens.

     

    4.           Representations and
Warranties of Buyer. Buyer represents and warrants to Seller as of the
date hereof as follows:

     

    (a)           Enforceability. The
execution, delivery and performance by Buyer of this Agreement are within Buyer’
powers. This Agreement has been duly executed and delivered by Buyer and
constitutes the valid and binding agreement of Buyer, enforceable against Buyer
in accordance with its terms, except to the extent that its enforceability may
be subject to applicable bankruptcy, insolvency, reorganization, moratorium and
similar laws affecting the enforcement of creditors' rights generally and by
general equitable principles.

     

    (b)           Governmental
Authorization. The execution, delivery and performance by Buyer of this
Agreement require no consent, approval, Order, authorization or action by or in
respect of, or filing with, any Governmental Authority.

     

    (c)           Non-Contravention;
Consents. The execution, delivery and performance by Buyer of this
Agreement, and the consummation of the transactions contemplated hereby do not
violate any applicable Law or Order.

     

     

     

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    (d)           Purchase for
Investment.  Buyer are financially able to bear the economic
risks of acquiring an interest in the Company and the other transactions
contemplated hereby, and have no need for liquidity in this investment. Buyer
have such knowledge and experience in financial and business matters in general,
and with respect to businesses of a nature similar to the business of the
Company, so as to be capable of evaluating the merits and risks of, and making
an informed business decision with regard to, the acquisition of the Shares.
Buyer are acquiring the Shares solely for their own account and not with a view
to or for resale in connection with any distribution or public offering thereof,
within the meaning of any applicable securities laws and regulations, unless
such distribution or offering is registered under the Securities Act of 1933, as
amended (the “Securities Act”), or
an exemption from such registration is available. Buyer have (i) received all
the information they have deemed necessary to make an informed investment
decision with respect to the acquisition of the Shares, (ii) had an opportunity
to make such investigation as they have desired pertaining to the Company and
the acquisition of an interest therein, and to verify the information which is,
and has been, made available to them and (iii) had the opportunity to ask
questions of Seller concerning the Company. Buyer have received no public
solicitation or advertisement with respect to the offer or sale of the Shares.
Buyer realize that the Shares are “restricted securities” as that term is
defined in Rule 144 promulgated by the Securities and Exchange Commission under
the Securities Act, the resale of the Shares is restricted by federal and state
securities laws and, accordingly, the Shares must be held indefinitely unless
their resale is subsequently registered under the Securities Act or an exemption
from such registration is available for their resale. Buyer understand that any
resale of the Shares by them must be registered under the Securities Act (and
any applicable state securities law) or be effected in circumstances that, in
the opinion of counsel for the Company at the time, create an exemption or
otherwise do not require registration under the Securities Act (or applicable
state securities laws). Buyer acknowledge and consent that certificates now or
hereafter issued for the Shares will bear a legend substantially as
follows:

     

    THE
SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR QUALIFIED UNDER
ANY APPLICABLE STATE SECURITIES LAWS (THE “STATE ACTS”), HAVE BEEN ACQUIRED FOR
INVESTMENT AND MAY NOT BE SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED
EXCEPT PURSUANT TO A REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND
QUALIFICATION UNDER THE STATE ACTS OR PURSUANT TO EXEMPTIONS FROM SUCH
REGISTRATION OR QUALIFICATION REQUIREMENTS (INCLUDING, IN THE CASE OF THE
SECURITIES ACT, THE EXEMPTIONS AFFORDED BY SECTION 4(1) OF THE SECURITIES ACT
AND RULE 144 THEREUNDER). AS A PRECONDITION TO ANY SUCH TRANSFER, THE ISSUER OF
THESE SECURITIES SHALL BE FURNISHED WITH AN OPINION OF COUNSEL OPINING AS TO THE
AVAILABILITY OF EXEMPTIONS FROM SUCH REGISTRATION AND QUALIFICATION AND/OR SUCH
OTHER EVIDENCE AS MAY BE SATISFACTORY THERETO THAT ANY SUCH TRANSFER WILL NOT
VIOLATE THE SECURITIES LAWS.

     

    Buyer
understand that the Shares are being sold to them pursuant to the exemption from
registration contained in Section 4(1) of the Securities Act and that Seller is
relying upon the representations made herein as one of the bases for claiming
the Section 4(1) exemption.

     

    (e)           Liabilities.  Following
the Closing, Seller will have no debts, liabilities or obligations relating to
the Company or its business or activities, whether before or after the Closing,
and there are no outstanding guaranties, performance or payment bonds, letters
of credit or other contingent contractual obligations that have been undertaken
by Seller directly or indirectly in relation to the Company or its business and
that may survive the Closing.

     

     

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    (f)           Title to Purchase Price
Shares.  Buyer are the sole record and beneficial owners of the
Purchase Price Shares. At Closing, Buyer will have good and marketable title to
the Purchase Price Shares, which Purchase Price Shares are, and at the Closing
will be, free and clear of all options, warrants, pledges, claims, liens and
encumbrances, and any restrictions or limitations prohibiting or restricting
transfer to Seller, except for restrictions on transfer as contemplated by
applicable securities laws.

     

    5.           Indemnification and
Release.

     

    (a)           Indemnification.
Buyer covenant and agree to jointly and severally indemnify, defend, protect and
hold harmless Seller, and its officers, directors, employees, stockholders,
agents, representatives and affiliates (collectively, together with Seller, the
“Seller Indemnified
Parties”) at all times from and after the date of this Agreement from and
against all losses, liabilities, damages, claims, actions, suits, proceedings,
demands, assessments, adjustments, costs and expenses (including specifically,
but without limitation, reasonable attorneys’ fees and expenses of
investigation), whether or not involving a third party claim and regardless of
any negligence of any Seller Indemnified Party (collectively, “Losses”), incurred by
any Seller Indemnified Party as a result of or arising from (i) any breach of
the representations and warranties of Buyer set forth herein or in certificates
delivered in connection herewith, (ii) any breach or nonfulfillment of any
covenant or agreement on the part of Buyer under this Agreement, (iii) any debt,
liability or obligation of the Company, whether incurred or arising prior to the
date hereof or after, (iv) any debt, liability or obligation of Seller for
actions taken prior to that certain merger by and between Seller, Genesis Fluid
Solutions Acquisition Corp. and Genesis Fluid Solutions, Ltd., a Colorado
corporation (the “Merger”), including,
without limitation, any amounts due or owing to any former officer, director or
Affiliate of Seller, (v) the conduct and operations of the business of the
Company whether before or after the Closing, (vi) claims asserted against the
Company whether arising before or after the Closing, or (vii) any federal or
state income tax payable by Seller and attributable to the transaction
contemplated by this Agreement or activities prior to the Merger or with respect
to the Company after the Merger.

     

    (b)           Third Party
Claims.

     

    (i)           If
any claim or liability (a “Third-Party Claim”)
should be asserted against any of the Seller Indemnified Parties (the “Indemnitee”) by a
third party after the Closing for which Buyer have an indemnification obligation
under the terms of Section 5(a), then the Indemnitee shall notify Buyer (the
“Indemnitor”)
within 20 days after the Third-Party Claim is asserted by a third party (said
notification being referred to as a “Claim Notice”) and
give the Indemnitor a reasonable opportunity to take part in any examination of
the books and records of the Indemnitee relating to such Third-Party Claim and
to assume the defense of such Third-Party Claim and in connection therewith and
to conduct any proceedings or negotiations relating thereto and necessary or
appropriate to defend the Indemnitee and/or settle the Third-Party Claim. The
expenses (including reasonable attorneys’ fees) of all negotiations,
proceedings, contests, lawsuits or settlements with respect to any Third-Party
Claim shall be borne by the Indemnitor. If the Indemnitor agrees to assume the
defense of any Third-Party Claim in writing within 20 days after the Claim
Notice of such Third-Party Claim has been delivered, through counsel reasonably
satisfactory to Indemnitee, then the Indemnitor shall be entitled to control the
conduct of such defense, and shall be responsible for any expenses of the
Indemnitee in connection with the defense of such Third-Party Claim so long as
the Indemnitor continues such defense until the final resolution of such
Third-Party Claim. The Indemnitor shall be responsible for paying all
settlements made or judgments entered with respect to any Third-Party Claim the
defense of which has been assumed by the Indemnitor. Except as provided in
subsection (ii) below, both the Indemnitor and the Indemnitee must approve any
settlement of a Third-Party Claim. A failure by the Indemnitee to timely give
the Claim Notice shall not excuse Indemnitor from any indemnification liability
except only to the extent that the Indemnitor is materially and adversely
prejudiced by such failure.

     

     

     

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    (ii)           If
the Indemnitor shall not agree to assume the defense of any Third-Party Claim in
writing within 20 days after the Claim Notice of such Third-Party Claim has been
delivered, or shall fail to continue such defense until the final resolution of
such Third-Party Claim, then the Indemnitee may defend against such Third-Party
Claim in such manner as it may deem appropriate and the Indemnitee may settle
such Third-Party Claim, in its sole discretion, on such terms as it may deem
appropriate. The Indemnitor shall promptly reimburse the Indemnitee for the
amount of all settlement payments and expenses, legal and otherwise, incurred by
the Indemnitee in connection with the defense or settlement of such Third-Party
Claim. If no settlement of such Third-Party Claim is made, then the Indemnitor
shall satisfy any judgment rendered with respect to such Third-Party Claim
before the Indemnitee is required to do so, and pay all expenses, legal or
otherwise, incurred by the Indemnitee in the defense against such Third-Party
Claim.

     

    (c)           Non-Third-Party
Claims. Upon discovery of any claim for which Buyer have an
indemnification obligation under the terms of this Section 5 which does not
involve a claim by a third party against the Indemnitee, the Indemnitee shall
give prompt notice to Buyer of such claim and, in any case, shall give Buyer
such notice within 30 days of such discovery. A failure by Indemnitee to timely
give the foregoing notice to Buyer shall not excuse Buyer from any
indemnification liability except to the extent that Buyer are materially and
adversely prejudiced by such failure.

     

    (d)           Release.  Buyer,
on behalf of themselves and their Related Parties, hereby release and forever
discharge Seller and its individual, joint or mutual, past and present
representatives, Affiliates, officers, directors, employees, agents, attorneys,
stockholders, controlling persons, subsidiaries, successors and assigns
(individually, a “Releasee” and
collectively, “Releasees”) from any
and all claims, demands, proceedings, causes of action, orders, obligations,
contracts, agreements, debts and liabilities whatsoever, whether known or
unknown, suspected or unsuspected, both at law and in equity, which Buyer or any
of their Related Parties now have or have ever had against any Releasee. Buyer
hereby irrevocably covenant to refrain from, directly or indirectly, asserting
any claim or demand, or commencing, instituting or causing to be commenced, any
proceeding of any kind against any Releasee, based upon any matter released
hereby. “Related
Parties” shall mean, with respect to Buyer, (i) any Person that directly
or indirectly controls, is directly or indirectly controlled by, or is directly
or indirectly under common control with Buyer, (ii) any Person in which Buyer
hold a Material Interest or (iii) any Person with respect to which any Buyer
serves as a general partner or a trustee (or in a similar capacity). For
purposes of this definition, “Material Interest”
shall mean direct or indirect beneficial ownership (as defined in Rule 13d-3
under the Securities Exchange Act of 1934, as amended) of voting securities or
other voting interests representing at least ten percent (10%) of the
outstanding voting power of a Person or equity securities or other equity
interests representing at least ten percent (10%) of the outstanding equity
securities or equity interests in a Person.

     

     

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    6.           Definitions. As used
in this Agreement:

     

    (a)           “Affiliate” means,
with respect to any Person, any other Person directly or indirectly controlling,
controlled by or under common control with the first Person. For the purposes of
this definition, “Control,” when used
with respect to any Person, means the possession, directly or indirectly, of the
power to (i) vote 10% or more of the securities having ordinary voting power for
the election of directors (or comparable positions) of such Person or (ii)
direct or cause the direction of the management and policies of such Person,
whether through the ownership of voting securities, by contract or otherwise,
and the terms “Controlling” and
“Controlled”
have meanings correlative to the foregoing;

     

    (b)           “Governmental
Authority” means any domestic or foreign governmental or regulatory
authority;

     

    (c)           “Law” means any
federal, state or local statute, law, rule, regulation, ordinance, code, Permit,
license, policy or rule of common law;

     

    (d)           “Lien” means, with
respect to any property or asset, any mortgage, lien, pledge, charge, security
interest, encumbrance or other adverse claim of any kind in respect of such
property or asset. For purposes of this Agreement, a Person will be deemed to
own, subject to a Lien, any property or asset which it has acquired or holds
subject to the interest of a vendor or lessor under any conditional sale
agreement, capital lease or other title retention agreement relating to such
property or asset;

     

    (e)           “Order” means any
judgment, injunction, judicial or administrative order or decree;

     

    (f)           “Permit” means any
government or regulatory license, authorization, permit, franchise, consent or
approval; and

     

    (h)           “Person” means an
individual, corporation, partnership, limited liability company, association,
trust or other entity or organization, including a government or political
subdivision or an agency or instrumentality thereof.

     

     

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    7.           Miscellaneous.

     

    (a)           Counterparts. This
Agreement may be signed in any number of counterparts, each of which will be
deemed an original but all of which together shall constitute one and the same
instrument.

     

    (b)           Amendments and
Waivers.

     

    (i)           Any
provision of this Agreement may be amended or waived if, but only if, such
amendment or waiver is in writing and is signed, in the case of an amendment, by
each party to this Agreement, or in the case of a waiver, by the party against
whom the waiver is to be effective.

     

    (ii)           No
failure or delay by any party in exercising any right, power or privilege
hereunder will operate as a waiver thereof nor will any single or partial
exercise thereof preclude any other or further exercise thereof or the exercise
of any other right, power or privilege. The rights and remedies herein provided
will be cumulative and not exclusive of any rights or remedies provided by
Law.

     

    (c)           Successors and
Assigns. The provisions of this Agreement will be binding upon and inure
to the benefit of the parties hereto and their respective successors and
assigns; provided that
no party may assign, delegate or otherwise transfer (including by operation of
Law) any of its rights or obligations under this Agreement without the consent
of each other party hereto.

     

    (d)           No Third Party
Beneficiaries. This Agreement is for the sole benefit of the parties
hereto and their permitted successors and assigns and nothing herein expressed
or implied will give or be construed to give to any Person, other than the
parties hereto, those referenced in Section 5 above, and such permitted
successors and assigns, any legal or equitable rights hereunder.

     

    (e)           Governing Law. This
Agreement will be governed by, and construed in accordance with, the internal
substantive law of the State of New York.

     

    (f)           Headings. The
headings in this Agreement are for convenience of reference only and will not
control or affect the meaning or construction of any provisions
hereof.

     

    (g)           Entire Agreement.
This Agreement constitutes the entire agreement among the parties with respect
to the subject matter of this Agreement. This Agreement supersedes all prior
agreements and understandings, both oral and written, between the parties with
respect to the subject matter hereof of this Agreement.

     

     

     

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    (h)           Severability. If any
provision of this Agreement or the application of any such provision to any
Person or circumstance is held invalid, illegal or unenforceable in any respect
by a court of competent jurisdiction, the remainder of the provisions of this
Agreement (or the application of such provision in other jurisdictions or to
Persons or circumstances other than those to which it was held invalid, illegal
or unenforceable) will in no way be affected, impaired or invalidated, and to
the extent permitted by applicable Law, any such provision will be restricted in
applicability or reformed to the minimum extent required for such provision to
be enforceable. This provision will be interpreted and enforced to give effect
to the original written intent of the parties prior to the determination of such
invalidity or unenforceability.

     

     

     

     

    [Signature
Page Follows]

     

     

     

     

     

     

     

     

     

     

     

     

     

     

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    IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed and delivered, effective as of the date first above
written.

     

    

     

    
      
        	 	GOLDEN
      KEY INTERNATIONAL, INC.	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Robert
      Blair	 
	 	 	Name: 
      Robert Blair	 
	 	 	Title: 
      President and Chief Executive Officer	 
	 	 	 	 

      

    

     

    

    
      	 	"BUYER"	 
	 	 	 	 
	
               

            	
              By:
      

            	/s/ Norm
      Blair	 
	 	 	Norm
      Blair	 
	 	 	 	 
	 	 	 	 

    

    
 

     

     

     

     

     

     

     

     

     

    9Exhibit 10.56

 

SECOND AMENDMENT TO THE

NEIMAN MARCUS, INC.

MANAGEMENT EQUITY INCENTIVE PLAN

 

This
Second Amendment to the Neiman Marcus, Inc. Management Equity Incentive
Plan (the “Amendment”) is made effective as of November 16, 2009, by
Neiman Marcus, Inc., a Delaware corporation (formerly known as Newton
Acquisition, Inc.) (the
“Company”).

 

W I T N E S S E T H:

 

WHEREAS,
the Company established the Newton Acquisition, Inc. Management Equity
Incentive Plan (the “Plan”) effective as of November 29, 2005; and

 

WHEREAS,
the Company subsequently amended the Plan effective January 1, 2009 for
compliance with Internal Revenue Code Section 409A and to change the name
of the Plan to the Neiman Marcus, Inc. Management Equity Incentive Plan;
and

 

WHEREAS,
the Company now desires to amend the definitions of Fair Value Option and
Performance Option under the Plan to allow more flexibility in the design of
the awards, and to make certain other related changes;

 

NOW,
THEREFORE, pursuant to the authority reserved in Section 4.12, the Plan is
amended as follows:

 

1.             Section 2(a) of
the Plan is hereby amended and restated in its entirety as follows:

 

(a)           “Accreting Exercise Price” shall mean,
with respect to an Option, except as otherwise provided in a Participant’s
Stock Option Grant Agreement, an Exercise Price that increases at a 10.00%
compound rate on each anniversary of the Grant Date of such Option until the
earlier to occur of (i) Exercise of such Option, (ii) the fifth
anniversary of the Grant Date of such Option, and (iii) the occurrence of
a Change of Control of the Company; provided, however, that the Exercise
Price shall cease to increase as provided herein on a portion of the
outstanding Performance Options following the sale by the Majority Stockholder
of shares of Common Stock as follows:  the pro rata portion of the Performance Options held by a
Participant with respect to which the Exercise Price shall cease to increase
shall be the portion of the Performance Options that bears the same ratio to
the total Performance Options held by a Participant as the total number of
shares of Common Stock sold by the Majority 

 

 

Stockholder
bears to the total number of shares of Common Stock owned by the Majority
Stockholder immediately prior to such sale.

 

2.             Section 2(r) of
the Plan is hereby amended and restated in its entirety as follows:

 

(r)  “Fair Value
Option” shall mean, except as otherwise provided in a Participant’s
Stock Option Grant Agreement, an Option with a fixed Exercise Price equal to
the Fair Market Value of the underlying Common Stock on the Grant Date.

 

3.             Section 2(cc) of the
Plan is hereby amended and restated in its entirety as follows:

 

(cc)  “Performance Option” shall mean,
except as otherwise provided in a Participant’s Stock Option Grant Agreement,
an Option with an Accreting Exercise Price that starts at the Fair Market Value
of the underlying Common Stock on the Grant Date.

 

4.             Section 2(kk) of the
Plan is hereby amended and restated in its entirety as follows:

 

(kk)         “Stock Option Grant Agreement” shall mean an agreement which is
entered into by a Participant and the Company evidencing the Grant of an Option
pursuant to the Plan in substantially the same form as one of the agreements
attached hereto as Exhibit A or such other agreement form as may be
approved by the Board.

 

5.             The second to last sentence
of Section 4.4(a) is hereby amended and restated in its entirety as
follows:

 

Unless otherwise specified
in a Participant’s Stock Option Grant Agreement, the portion of an Option that
vests on any Vesting Date will be allocated equally among the portion of the
Option that is a Fair Value Option and the portion of the Option that is a
Performance Option.

 

6.             Exhibit A to the Plan
is hereby amended by the addition of the forms of Stock Option Grant Agreement
attached hereto as Exhibit A.

 

7.             Except as otherwise
specifically set forth herein, all other terms and conditions of the Plan shall
remain in full force and effect.

 

2

 

IN WITNESS WHEREOF, the Company
has caused this Amendment to be executed on its behalf by its duly authorized
officer on this the 16th day of November 2009.

 

	
   

  	
  NEIMAN MARCUS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Nelson A. Bangs

  
	
   

  	
   

  	
  Senior Vice President

  

 

3

 

Exhibit A

 

Form of

 

AMENDED AND RESTATED

STOCK OPTION GRANT AGREEMENT

(Non-Qualified Stock Option)

 

This Amended and Restated
Stock Option Grant Agreement (the “Agreement”) is made effective as of this           
day of                               ,
2009 between Neiman Marcus, Inc. (the “Company”) and                                                   
(the “Participant”).

 

WHEREAS, the Company has
adopted and maintains the Neiman Marcus, Inc. Management Equity Incentive
Plan, as amended (the “Plan”);

 

WHEREAS, the Plan provides
for the grant to Participants in the Plan of Non-Qualified Stock Options to
purchase shares of Common Stock of the Company;

 

WHEREAS, the Company
previously granted a Non-Qualified Stock Option to the Participant pursuant to
the Plan evidenced by a Stock Option Grant Agreement dated as of                               ,
20      , that contained both a Performance
Option and a Fair Value Option (the “Original Option”);

 

WHEREAS, the Stock Option
Grant Agreement with respect to the Original Option was amended effective January 1,
2009;

 

WHEREAS, the Fair Market
Value of the shares of Common Stock subject to the Original Option is less than
the Exercise Price of the Original Option immediately prior to the
effectiveness of this Agreement;

 

WHEREAS, pursuant to an
exchange offer accepted by the Participant, the Company and the Participant
have cancelled the portion of the Original Option that is a Performance Option
as consideration for the grant of a new Performance Option as provided herein;

 

WHEREAS, the Company has
approved the modification of the Expiration Date of the Original Option with
respect to both the Performance Option and the Fair Value Option; and

 

WHEREAS, the portion of the
Original Option that is a Fair Value Option shall otherwise remain unchanged;

 

NOW, THEREFORE, pursuant to
the authority reserved in Section 4.12 of the Plan and in consideration of
the premises and the mutual covenants hereinafter set forth, the parties hereto
hereby agree to amend and restate the Stock Option Grant Agreement with respect
to the Original Option in its entirety as follows:

 

4

 

1.             Incorporation of Plan.  All terms, conditions and restrictions of the
Plan are incorporated herein and made part hereof as if stated herein. All
capitalized terms used and not defined herein shall have the meaning given to
such terms in the Plan.

 

2.             Grant of Options.  Pursuant to, and subject to, the terms and
conditions set forth herein and in the Plan, the Company hereby restates the
prior grant to the Participant of a Fair Value Option with respect to                     
shares of Common Stock of the Company and now hereby grants to the Participant
a new Performance Option with respect to                     
shares of Common Stock of the Company, such that the total number of shares of
Common Stock of the Company granted to the Participant hereunder as a
Non-Qualified Stock Option is                     
shares (the “Option”).

 

3.             Grant Date.  The Grant Date of the Performance Option
hereby granted is                               ,
2009. The Grant Date of the Fair Value Option shall remain                               ,
20      .

 

4.             Exercise Price.

 

(a)           The Exercise Price of each
share of Common Stock underlying the portion of the Option that is a Fair Value
Option is $                    .

 

(b)           The Exercise Price of each
share of Common Stock underlying the portion of the Option that is a
Performance Option shall be an increasing amount starting with $                    
on the Grant Date and increasing at a 10.00% compound rate on each anniversary
of the Grant Date of such Performance Option until the earlier to occur of (i) the
exercise of the Option, (ii) the fourth anniversary of the Grant Date of such
Performance Option, or (iii) the occurrence of a Change of Control of the
Company; provided, however, that the Exercise Price shall cease to increase as
provided herein on a portion of the outstanding Performance Option following
the sale by the Majority Stockholder of shares of Common Stock as
follows:  the pro rata
portion of the Performance Option held by a Participant with respect to which
the Exercise Price shall cease to increase shall be the portion of the
Performance Option that bears the same ratio to the total Performance Option
held by a Participant as the total number of shares of Common Stock sold by the
Majority Stockholder bears to the total number of shares of Common Stock owned
by the Majority Stockholder immediately prior to such sale.

 

5.             Vesting Date.

 

(a)           The Fair Value Option shall
become exercisable as follows:  20% of
the shares underlying such Fair Value Option shall vest and become exercisable
on the first anniversary of the Grant Date of such Fair Value Option and the
remaining portion of the Fair Value Option shall vest and become exercisable in
forty-eight (48) equal monthly installments over the forty-eight (48) months
following the first anniversary of the Grant Date of such Fair Value Option,
beginning on the one-month anniversary of such first anniversary, until 100% of
the Fair Value Option is fully vested and exercisable

 

5

 

thereafter, provided that
the Participant is still employed by the Company on each such anniversary.

 

(b)           The Performance Option shall
become exercisable as follows:  25% of
the shares underlying such Performance Option shall vest and become exercisable
on the first anniversary of the Grant Date of such Performance Option and the
remaining portion of the Performance Option shall vest and become exercisable
in thirty-six (36) equal monthly installments over the thirty-six (36) months
following the first anniversary of the Grant Date of such Performance Option,
beginning on the one-month anniversary of such first anniversary, until 100% of
the Performance Option is fully vested and exercisable thereafter, provided
that the Participant is still employed by the Company on each such anniversary.

 

6.             Expiration Date.  With respect to the Option or any portion thereof
which has not become exercisable, the Option shall expire on the date the
Participant’s Employment is terminated for any reason, and with respect to the
Option or any portion thereof which has become exercisable, the Option shall
expire (i) 90 days after the Participant’s termination of Employment for
reasons other than Retirement, Cause, death or Disability; (ii) one year
after termination of the Participant’s Employment by reason of Retirement,
death or Disability; (iii) as of the commencement of business on the date
the Participant’s Employment is, or is deemed to have been, terminated for
Cause; or (iv) on                               ,
2017, if the Option has not previously expired for any of the reasons specified
above in this Section 6.

 

7.             Certain Rights on a Change
of Control.  If (a) a Change of Control occurs,
(b) the surviving corporation following such Change of Control is an
entity for whose stock there is no Public Market, (c) the surviving
corporation assumes the Participant’s outstanding Options in connection with
such Change of Control and such Options convert into options to purchase common
stock or other equity interests of the surviving corporation (the “Assumed
Options”) and (d) the Participant thereafter experiences a Qualifying Termination
at any time prior to the occurrence of an Initial Public Offering of the
surviving corporation, the Participant will be entitled to sell to the Company
or such surviving corporation, within ninety (90) days of such Qualifying
Termination, all or any portion of the Assumed Options that the Participant had
not exercised at the time of such sale and elects to sell to the Company or
such surviving corporation (the “Eligible Assumed Options”), and the Company or
such surviving corporation will be obligated to purchase from the Participant,
in full satisfaction of the Participant’s rights with respect to such Eligible
Assumed Options, all such Eligible Assumed Options, for a price equal to the
aggregate fair market value, as determined in accordance with Treas. Reg. §
1.409A-1(b)(5)(iv), of the shares of common stock or other equity interests
underlying such Eligible Assumed Options, minus the aggregate exercise price of
such Eligible Assumed Options that such Participant would have been required to
pay in order to exercise such Eligible Assumed Options.

 

8.             Construction of Agreement.  Any provision of this Agreement (or portion
thereof) which is deemed invalid, illegal or unenforceable in any jurisdiction
shall, as to that jurisdiction and subject to this section, be ineffective to
the extent of such invalidity, 

 

6

 

illegality or
unenforceability, without affecting in any way the remaining provisions thereof
in such jurisdiction or rendering that or any other provisions of this
Agreement invalid, illegal, or unenforceable in any other jurisdiction. If any
covenant should be deemed invalid, illegal or unenforceable because its scope
is considered excessive, such covenant shall be modified so that the scope of the
covenant is reduced only to the minimum extent necessary to render the modified
covenant valid, legal and enforceable. No waiver of any provision or violation
of this Agreement by the Company shall be implied by the Company’s forbearance
or failure to take action. It is intended that the Option be exempt from Code Section 409A,
and this Agreement shall be administered and construed to the fullest extent
possible to reflect and implement such intent.

 

9.             Delays or
Omissions.  No delay or
omission to exercise any right, power or remedy accruing to any party hereto
upon any breach or default of any party under this Agreement, shall impair any
such right, power or remedy of such party nor shall it be construed to be a
waiver of, or acquiescence in, any such breach or default, or any similar
breach or default thereafter occurring nor shall any waiver of any single
breach or default be deemed a waiver of any other breach or default theretofore
or thereafter occurring. Any waiver, permit, consent or approval of any kind or
character on the part of any party of any breach or default under this
Agreement, or any waiver on the part of any party or any provisions or
conditions of this Agreement, shall be in writing and shall be effective only
to the extent specifically set forth in such writing.

 

10.           Limitation on Transfer.  The Option shall be exercisable only by the
Participant or the Participant’s Permitted Transferee(s), as determined in
accordance with the terms of the Plan (including without limitation the requirement
that the Participant obtain the prior written approval by the Board of any
proposed Transfer to a Permitted Transferee during the lifetime of the
Participant). Each Permitted Transferee shall be subject to all the
restrictions, obligations, and responsibilities as apply to the Participant
under the Plan and this Agreement and shall be entitled to all the rights of
the Participant under the Plan, provided that in respect of any Permitted
Transferee which is a trust or custodianship, the Option shall become
exercisable and/or expire based on the employment and termination of employment
of the Participant. All shares of Common Stock obtained pursuant to the Option
granted herein shall not be transferred except as provided in the Plan and,
where applicable, the Management Stockholders’ Agreement.

 

11.           Integration.  This Agreement, and the other documents
referred to herein or delivered pursuant hereto which form a part hereof
contain the entire understanding of the parties with respect to its subject
matter. There are no restrictions, agreements, promises, representations,
warranties, covenants or undertakings with respect to the subject matter hereof
other than those expressly set forth herein and in the Plan. This Agreement,
including without limitation the Plan, supersedes all prior agreements and
understandings between the parties with respect to its subject matter.

 

12.           Counterparts.  This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which shall
constitute one and the same instrument.

 

7

 

13.           Governing Law.  This Agreement shall be governed by and
construed and enforced in accordance with the laws of the State of Delaware
without regard to the provisions governing conflict of laws.

 

14.           Participant Acknowledgment.  The Participant hereby acknowledges receipt
of a copy of the Plan. The Participant hereby acknowledges that all decisions,
determinations and interpretations of the Board in respect of the Plan, this
Agreement and the Option shall be final and conclusive. The Participant further
acknowledges that, prior to the existence of a Public Market, no exercise of
the Option or any portion thereof shall be effective unless and until the
Participant has executed the Management Stockholders’ Agreement and the
Participant hereby agrees to be bound thereby.

 

IN WITNESS WHEREOF, the
Company has caused this Agreement to be duly executed by its duly authorized
officer and said Participant has hereunto signed this Agreement on his own
behalf, thereby representing that he has carefully read and understands this
Agreement, the Plan and the Management Stockholders’ Agreement as of the day
and year first written above.

 

	
   

  	
  NEIMAN
  MARCUS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PARTICIPANT

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [Participant’s
  Name]

  

 

8

 

Form of

 

SECOND AMENDED AND RESTATED

 

STOCK OPTION GRANT AGREEMENT

(Non-Qualified Stock Option)

 

This Second Amended and
Restated Stock Option Grant Agreement (the “Agreement”) is made effective as of
this            day of                               ,
2009 between Neiman Marcus, Inc. (the “Company”) and                                                   
(the “Participant”).

 

WHEREAS, the Company has
adopted and maintains the Neiman Marcus, Inc. Management Equity Incentive
Plan, as amended (the “Plan”);

 

WHEREAS, the Plan provides
for the grant to Participants in the Plan of Non-Qualified Stock Options to
purchase shares of Common Stock of the Company;

 

WHEREAS, the Company
previously granted a Non-Qualified Stock Option to the Participant pursuant to
the Plan evidenced by a Stock Option Grant Agreement dated as of                               ,
20      , that contained both a Performance
Option and a Fair Value Option (the “Original Option”);

 

WHEREAS, the Stock Option
Grant Agreement with respect to the Original Option was amended effective January 1,
2009;

 

WHEREAS, the Stock Option
Grant Agreement with respect to the Original Option was amended and restated
effective as of                               ,
2009 (the “Amended and Restated Stock Option Grant Agreement”) to reflect the
exchange of the Performance Option and to modify the Expiration Date of both
the Performance Option and the Fair Value Option;

 

WHEREAS, the Fair Market
Value of the shares of Common Stock subject to the Fair Value Option is less
than the Exercise Price of the Fair Value Option immediately prior to the
effectiveness of this Agreement;

 

WHEREAS, the Company and the
Participant have agreed to cancel the Fair Value Option as consideration for
the grant of a new Fair Value Option as provided herein; and

 

WHEREAS, the Performance
Option shall remain unchanged;

 

NOW, THEREFORE, pursuant to
the authority reserved in Section 4.12 of the Plan and in consideration of
the premises and the mutual covenants hereinafter set forth, the parties hereto
hereby agree to amend and restate the Amended and Restated Stock Option Grant
Agreement in its entirety as follows:

 

9

 

1.             Incorporation of Plan.  All terms, conditions and restrictions of the
Plan are incorporated herein and made part hereof as if stated herein. All
capitalized terms used and not defined herein shall have the meaning given to
such terms in the Plan.

 

2.             Grant of Options.  Pursuant to, and subject to, the terms and
conditions set forth herein and in the Plan, the Company hereby restates the
prior grant to the Participant of a Performance Option with respect to                     
shares of Common Stock of the Company and now hereby grants to the Participant
a new Fair Value Option with respect to                     
shares of Common Stock of the Company, such that the total number of shares of
Common Stock of the Company granted to the Participant hereunder as a
Non-Qualified Stock Option is                     
shares (the “Option”).

 

3.             Grant Date.  The Grant Date of the Fair Value Option
hereby granted is                               ,
2009. The Grant Date of the Performance Option shall remain                               ,
2009.

 

4.             Exercise Price.

 

(a)           The Exercise Price of each
share of Common Stock underlying the portion of the Option that is a Fair Value
Option is $                    .

 

(b)           The Exercise Price of each
share of Common Stock underlying the portion of the Option that is a
Performance Option shall be an increasing amount starting with $                    
on the Grant Date and increasing at a 10.00% compound rate on each anniversary
of the Grant Date of such Performance Option until the earlier to occur of (i) the
exercise of the Option, (ii) the fourth anniversary of the Grant Date of
such Performance Option, or (iii) the occurrence of a Change of Control of
the Company; provided, however, that the Exercise Price shall cease to increase
as provided herein on a portion of the outstanding Performance Option following
the sale by the Majority Stockholder of shares of Common Stock as
follows:  the pro rata
portion of the Performance Option held by a Participant with respect to which
the Exercise Price shall cease to increase shall be the portion of the
Performance Option that bears the same ratio to the total Performance Option
held by a Participant as the total number of shares of Common Stock sold by the
Majority Stockholder bears to the total number of shares of Common Stock owned
by the Majority Stockholder immediately prior to such sale.

 

5.             Vesting Date.

 

(a)           The Fair Value Option shall
become exercisable as follows:  25% of
the shares underlying such Fair Value Option shall vest and become exercisable
on                               ,
2010 and the remaining portion of the Fair Value Option shall vest and become
exercisable in thirty-six (36) equal monthly installments over the following
thirty-six (36) months, beginning on the one-month anniversary of such date,
until 100% of the Fair Value Option is fully vested and exercisable thereafter,
provided that the Participant is still employed by the Company at such time.

 

10

 

(b)           The Performance Option shall
become exercisable as follows:  25% of
the shares underlying such Performance Option shall vest and become exercisable
on the first anniversary of the Grant Date of such Performance Option and the
remaining portion of the Performance Option shall vest and become exercisable
in thirty-six (36) equal monthly installments over the thirty-six (36) months
following the first anniversary of the Grant Date of such Performance Option,
beginning on the one-month anniversary of such first anniversary, until 100% of
the Performance Option is fully vested and exercisable thereafter, provided
that the Participant is still employed by the Company on each such anniversary.

 

6.             Expiration Date.  With respect to the Option or any portion thereof
which has not become exercisable, the Option shall expire on the date the
Participant’s Employment is terminated for any reason, and with respect to the
Option or any portion thereof which has become exercisable, the Option shall
expire (i) 90 days after the Participant’s termination of Employment for
reasons other than Retirement, Cause, death or Disability; (ii) one year
after termination of the Participant’s Employment by reason of Retirement,
death or Disability; (iii) as of the commencement of business on the date
the Participant’s Employment is, or is deemed to have been, terminated for
Cause; or (iv) on                               ,
2017, if the Option has not previously expired for any of the reasons specified
above in this Section 6.

 

7.             Certain Rights on a Change
of Control.  If (a) a Change of Control occurs,
(b) the surviving corporation following such Change of Control is an
entity for whose stock there is no Public Market, (c) the surviving
corporation assumes the Participant’s outstanding Options in connection with
such Change of Control and such Options convert into options to purchase common
stock or other equity interests of the surviving corporation (the “Assumed
Options”) and (d) the Participant thereafter experiences a Qualifying Termination
at any time prior to the occurrence of an Initial Public Offering of the
surviving corporation, the Participant will be entitled to sell to the Company
or such surviving corporation, within ninety (90) days of such Qualifying
Termination, all or any portion of the Assumed Options that the Participant had
not exercised at the time of such sale and elects to sell to the Company or
such surviving corporation (the “Eligible Assumed Options”), and the Company or
such surviving corporation will be obligated to purchase from the Participant,
in full satisfaction of the Participant’s rights with respect to such Eligible
Assumed Options, all such Eligible Assumed Options, for a price equal to the
aggregate fair market value, as determined in accordance with Treas. Reg. §
1.409A-1(b)(5)(iv), of the shares of common stock or other equity interests
underlying such Eligible Assumed Options, minus the aggregate exercise price of
such Eligible Assumed Options that such Participant would have been required to
pay in order to exercise such Eligible Assumed Options.

 

8.             Construction of Agreement.  Any provision of this Agreement (or portion
thereof) which is deemed invalid, illegal or unenforceable in any jurisdiction
shall, as to that jurisdiction and subject to this section, be ineffective to
the extent of such invalidity, illegality or unenforceability, without
affecting in any way the remaining provisions thereof in such jurisdiction or
rendering that or any other provisions of this Agreement 

 

11

 

invalid, illegal, or
unenforceable in any other jurisdiction. If any covenant should be deemed
invalid, illegal or unenforceable because its scope is considered excessive,
such covenant shall be modified so that the scope of the covenant is reduced
only to the minimum extent necessary to render the modified covenant valid,
legal and enforceable. No waiver of any provision or violation of this
Agreement by the Company shall be implied by the Company’s forbearance or
failure to take action. It is intended that the Option be exempt from Code Section 409A,
and this Agreement shall be administered and construed to the fullest extent
possible to reflect and implement such intent.

 

9.             Delays or Omissions.  No delay or omission to exercise any right,
power or remedy accruing to any party hereto upon any breach or default of any
party under this Agreement, shall impair any such right, power or remedy of
such party nor shall it be construed to be a waiver of, or acquiescence in, any
such breach or default, or any similar breach or default thereafter occurring
nor shall any waiver of any single breach or default be deemed a waiver of any
other breach or default theretofore or thereafter occurring. Any waiver,
permit, consent or approval of any kind or character on the part of any party
of any breach or default under this Agreement, or any waiver on the part of any
party or any provisions or conditions of this Agreement, shall be in writing
and shall be effective only to the extent specifically set forth in such
writing.

 

10.           Limitation on Transfer.  The Option shall be exercisable only by the
Participant or the Participant’s Permitted Transferee(s), as determined in
accordance with the terms of the Plan (including without limitation the requirement
that the Participant obtain the prior written approval by the Board of any
proposed Transfer to a Permitted Transferee during the lifetime of the
Participant). Each Permitted Transferee shall be subject to all the
restrictions, obligations, and responsibilities as apply to the Participant
under the Plan and this Agreement and shall be entitled to all the rights of
the Participant under the Plan, provided that in respect of any Permitted
Transferee which is a trust or custodianship, the Option shall become
exercisable and/or expire based on the employment and termination of employment
of the Participant. All shares of Common Stock obtained pursuant to the Option
granted herein shall not be transferred except as provided in the Plan and,
where applicable, the Management Stockholders’ Agreement.

 

11.           Integration.  This Agreement, and the other documents
referred to herein or delivered pursuant hereto which form a part hereof
contain the entire understanding of the parties with respect to its subject matter.
There are no restrictions, agreements, promises, representations, warranties,
covenants or undertakings with respect to the subject matter hereof other than
those expressly set forth herein and in the Plan. This Agreement, including
without limitation the Plan, supersedes all prior agreements and understandings
between the parties with respect to its subject matter.

 

12.           Counterparts.  This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which shall
constitute one and the same instrument.

 

13.           Governing Law.  This Agreement shall be governed by and
construed and 

 

12

 

enforced in accordance with
the laws of the State of Delaware without regard to the provisions governing
conflict of laws.

 

14.           Participant Acknowledgment.  The Participant hereby acknowledges receipt
of a copy of the Plan. The Participant hereby acknowledges that all decisions,
determinations and interpretations of the Board in respect of the Plan, this
Agreement and the Option shall be final and conclusive. The Participant further
acknowledges that, prior to the existence of a Public Market, no exercise of
the Option or any portion thereof shall be effective unless and until the Participant
has executed the Management Stockholders’ Agreement and the Participant hereby
agrees to be bound thereby.

 

IN WITNESS WHEREOF, the
Company has caused this Agreement to be duly executed by its duly authorized
officer and said Participant has hereunto signed this Agreement on his own
behalf, thereby representing that he has carefully read and understands this
Agreement, the Plan and the Management Stockholders’ Agreement as of the day
and year first written above.

 

	
   

  	
  NEIMAN
  MARCUS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PARTICIPANT

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [Participant’s
  Name]

  

 

13

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