Document:

EXHIBIT 10.32

 

CONFIDENTIALITY, NON-COMPETITION
AND TERMINATION BENEFITS AGREEMENT

 

This Confidentiality,
Non-Competition and Termination Benefits Agreement (“Agreement”) is entered
into effective as of May 3, 2004 between James J. Gold (“Executive”) and Bergdorf
Goodman, Inc., a New York corporation (“Bergdorf’) and a wholly-owned
subsidiary of The Neiman Marcus Group, Inc., a Delaware corporation (“NMG”).
All capitalized terms used but not defined herein shall have the meanings
assigned to them in Appendix A, which is attached hereto and incorporated fully
herein by reference.

 

WHEREAS, Executive has
been promoted to the position of President and Chief Executive Officer of
Bergdorf, and Executive understands and agrees that his employment in such
position shall be on an “at will” basis, and that either Executive or Bergdorf
may terminate Executive’s employment at any time, with or without notice, and
for any reason;

 

WHEREAS, in connection
with the restructuring of the compensation and benefits provided to senior
executives of NMG and its Affiliates, including Executive, the Board of
Directors of NMG has determined that stock option and restricted stock awards
should be combined with appropriate post-employment and other restrictions
designed to protect the legitimate business interests of NMG and its
Affiliates, including Bergdorf;

 

WHEREAS, effective as of
this date and as a consequence of his promotion, (i) NMG and Executive
l1ave entered into separate stock option and purchase restricted stock
agreements (the “Incentive Agreements”) that set forth the rights and
obligations of NMG and Executive with respect to such awards, and (ii) NMG
has granted to Executive an ownership interest in NMG in the form of NMG stock;
;’

 

WHEREAS, by virtue of his
new position and responsibilities, Executive has and will have unique access to
and knowledge of Bergdorf’s trade secrets and other confidential and
proprietary business information;

 

WHEREAS, Executive’s
association with Bergdorf to the exclusion of its competitors will enhance
Bergdorf’s goodwill and Executive’s earning capacity; and

 

WHEREAS, Bergdorf and
Executive mutually desire to protect Bergdorf’s goodwill created by Executive’s
association with Bergdorf and Bergdorf’s trade secrets and other confidential
and proprietary business information, and in recognition of the possible
interruption of Executive’s earnings after the end of his Bergdorf employment;

 

NOW, THEREFORE, in
consideration of the Incentive. Agreements and the promises and undertakings of
the parties set out herein, and intending to be legally bound, Executive and
Bergdorf agree as follows:

 

1. (a) While
Executive is employed at-will by Bergdorf, if Bergdorf terminates Executive’s
employment for any reason other than for “Cause,” his “Total Disability,” or
his death, subject to paragraphs l(c) and l(d) below, Bergdorf shall
provide Executive with benefits (“Termination Benefits”) consisting of:

 

 

(1) an amount equivalent to 1.5 times his
then-current annual base salary, less required withholding, which amount would
be paid over an 18-month period (hereinafter, the “Salary Continuance Period”)
in regular, bi-weekly installments following such termination; and

 

(2) if, at the time of his termination, Executive
participates in a group medical insurance plan offered by Bergdorf and
Executive is eligible for and elects to receive continued coverage under such
plan in accordance with the Consolidated I Omnibus Budget Reconciliation Act of
1985 (“COBRA”) or any successor law, Bergdorf will reimburse Executive during
the Salary Continuance Period or, if shorter, the period of such actual COBRA
continuation coverage, for the total amount of the monthly COBRA medical
insurance premiums actually paid by Executive for such continued medical
insurance benefits.

 

For the purposes of
determining whether or not Bergdorf has terminated Executive’s employment under
this paragraph l(a), any material, adverse change in the terms and conditions
of his employment, including but not limited to a relocation of Executive’s place
of business 50 miles or more from the current location, which change causes
Executive to resign his employment with Bergdorf, will be deemed a termination
by Bergdorf.  A transfer of employment between Bergdorf and NMG or any
Affiliate of NMG shall not be considered as a termination of employment for
purposes of this Agreement.

 

(b) Bergdorf
shall require any successor or assignee (whether direct or indirect, by
purchase, merger, consolidation, or otherwise) to all or substantially all the
business and/or assets of Bergdorf, by agreement in writing in form and
substance reasonably satisfactory to Executive, expressly, absolutely, and
unconditionally to assume and agree to ‘perform this Agreement in the same
manner and to the same extent that Bergdorf would be required to perform it if
no such succession or assignment had taken place. If Bergdorf fails to obtain
such agreement by the effective time of any such succession or assignment, such
failure shall be considered a material, adverse change in the terms and
conditions of Executive’s employment and will be deemed a termination by
Bergdorf for purposes of paragraph l(a) of this Agreement if such failure
causes Executive to resign his employment with Bergdorf; provided that the
Termination Benefits to which Executive would be entitled after such
resignation pursuant to paragraph l(a) of this Agreement shall be the sole
remedy of Executive for any failure by Bergdorf to obtain such agreement. As
used in this Agreement, “Bergdorf’ shall include any successor or assignee
(whether direct or indirect, by purchase, merger, consolidation, or otherwise)
to all or substantially all the business and/or assets of Bergdorf that
executes and delivers the agreement provided for in this paragraph 1 (b) or
that otherwise becomes obligated under this Agreement by operation of law.

 

It is the
expectation of the parties that any successor or assignee (whether direct or
indirect, by purchase, merger, consolidation, or otherwise) to an or
substantially all the business and/or assets of NMG, if such assets continue to
include a controlling interest in the stock of Bergdorf as of the time of such
succession or assignment, shall by agreement in writing, in form and substance
reasonably satisfactory to Executive, expressly, absolutely, and
unconditionally agree to cause Bergdorf to honor and agree to perform this
Agreement following such succession or assignment. If such agreement has not
been executed and delivered by the effective time of any such succession or
assignment, such failure shall be considered a material, adverse change in the
terms and conditions of Executive’s employment and will be deemed a termination
by Bergdorf for purposes of paragraph l(a) of this Agreement if such
failure causes Executive to resign his employment with Bergdorf; provided that
the Termination Benefits to which Executive would be entitled after such
resignation pursuant to paragraph l(a) of this Agreement shall be the sole
remedy of Executive if no such agreement has been executed and delivered as of
the effective time of such succession or assignment. As used in this Agreement,
“NMG” shall include any successor or assignee (whether direct or indirect, by
purchase, merger, consolidation, or otherwise) to all or substantially all the
business and/or assets of NMG that executes and delivers the agreement provided
for in this paragraph or that otherwise becomes obligated under II this
Agreement by operation of law.

 

 

(c) If, in
the reasonable judgment of Bergdorf, Executive engages in any of the Restricted
Activities described in paragraph 3 of this Agreement, Bergdorf s obligation to
provide the Termination Benefits shall end as of the date Bergdorf so notifies
Executive in writing.

 

(d) If
Executive is arrested or indicted for any felony, other serious criminal
offense, or any violation of federal or state securities laws, or has any civil
enforcement action brought against him by any regulatory agency, for actions or
omissions related to his employment with Bergdorf, or if Bergdorf reasonably
believes in its sole judgment that Executive has committed any act or omission
that would have entitled Bergdorf to terminate his employment for Cause,
whether such act or omission was committed during his employment with Bergdorf
or during the Salary Continuance Period, Bergdorf may suspend any payments
remaining pursuant to paragraph l(a) of this Agreement until the final
resolution of such criminal or civil proceedings or until Bergdorf has made a
final determination in its sole judgment as to whether Executive committed such
an act or omission. If Executive is found guilty or enters into a plea
agreement, consent decree or similar arrangement with respect to any such
criminal or civil proceedings, or if Bergdorf determines in its sole judgment
that Executive has committed such an act or omission, (1) Bergdorf’s
obligation to provide the Termination Benefits shall immediately end, and (2) Executive
shall repay to Bergdorf any amounts paid to him pursuant to paragraph 1 (a) of
this Agreement within 30 days after a written request to do so by Bergdorf. If
any such criminal or civil proceedings do not result in 11 finding of guilt or
the entry of a plea agreement or consent decree or similar arrangement, or
Bergdorf determines in its sole judgment that Executive has not committed such
an act or omission, Bergdorf shall pay to Executive any payments pursuant to
paragraph l(a) of this Agreement that it has suspended, with interest on
such suspended payments at its cost of funds, and shall make any remaining
payments due thereunder.

 

2. Executive acknowledges
and agrees that (a) Bergdorf is engaged in a highly competitive business; (b) Bergdorf
has expended considerable time and resources to develop goodwill with its
customers, vendors, and others, and to create, protect, and exploit
Confidential Information; (c) Bergdorf must continue to prevent the
dilution of its goodwill and unauthorized use or disclosure of its Confidential
Information to avoid irreparable harm to its legitimate business interests; (d) in
the specialty retail business, his participation in or direction of Bergdorf’s
day-today operations and strategic planning are an integral part of Bergdorf’s
continued success and goodwill; ( e) given his position and responsibilities,
he necessarily will be creating Confidential Information that belongs to
Bergdorf and enhances Bergdorf s goodwill, and in carrying out his
responsibilities he in turn will be relying on Bergdorf’s goodwill and the
disclosure by Bergdorf to him of Confidential Information; (f) he will
have access to Confidential Information that could be used by any Competitor of
Bergdorf in a manner that would irreparably harm Bergdorf’s competitive
position in the marketplace and dilute its goodwill; and (g) he
necessarily would use or disclose Confidential Information if he were to engage
in competition with Bergdorf.  Bergdorf acknowledges and agrees that
Executive must have and continue to have throughout his employment the benefits
and use of its goodwill and Confidential Information in order to properly carry
out his responsibilities. Bergdorf accordingly promises upon execution and
delivery of this Agreement to provide Executive immediate access to new and
additional Confidential Information and authorize him to engage in activities
that will create new and additional Confidential Information. Bergdorf and
Executive thus acknowledge and agree that I during Executive’s employment with
Bergdorf and upon execution and delivery of this Agreement he (a) has
received, will receive, and will continue to receive, Confidential Information
that is unique, proprietary, and valuable to Bergdorf, (b) has created,
will create, and will continue to create, Confidential Information that is
unique, proprietary, and valuable to Bergdorf, and (c) has benefited, will
benefit, and will continue to benefit, including without limitation by way of
increased earnings and earning capacity, from the goodwill Bergdorf has
generated and from the Confidential Information. Accordingly, Executive
acknowledges and agrees that at all times during his employment by Bergdorf and
thereafter:

 

 

(a) all
Confidential Information shall remain and be the sole and exclusive property of
Bergdorf;

 

(b) he will
protect and safeguard all Confidential Information;

 

(c) he will
hold all Confidential Information in strictest confidence and not, directly or
indirectly, disclose or divulge any Confidential Information to any person
other than an officer, director, or employee of Bergdorf or NMG to the extent
necessary for the proper performance of his responsibilities unless authorized
to do so by Bergdorf or compelled to do so by law or valid legal process;

 

(d) if he
believes he is compelled by law or valid legal process to disclose or divulge
any Confidential Information, he will notify Bergdorf in writing sufficiently
in advance of any such disclosure to allow Bergdorf. the opportunity to defend,
limit, or otherwise protect its interests against such disclosure;

 

(e) at the
end of his employment with Bergdorf for any reason or at the request of
Bergdorf at any time, he will return to Bergdorf all Confidential Information
and all copies thereof, in whatever tangible form or medium including
electronic; and

 

(f) absent
the promises and representations of Executive in this paragraph and paragraph 3
below, Bergdorf would require him immediately to return any tangible
Confidential Information in his possession, would not provide Executive with
new and additional Confidential Information, would not authorize Executive to
engage in activities that will create new and additional Confidential
Information and would not enter into this Agreement, and NMG would not have
entered into the Incentive Agreements.

 

3. In consideration of
Bergdorf’s promises to provide Executive with new and additional Confidential
Information and to authorize him to engage in activities that will create new
and additional Confidential Information upon execution and delivery of this
Agreement, and the other promises and undertakings of Bergdorf in this
Agreement and NMG in the Incentive Agreements, Executive agrees that, while he
is employed by Bergdorf and for a period of eighteen months following the end
of that employment for any reason, he shall not engage in any of the following
activities (the “Restricted Activities”):

 

 

(a) He will
not directly or indirectly disparage Bergdorf, NMG, or their Affiliates, or any
products, services, or operations of Bergdorf, NMG or their Affiliates, or any
of the former, current, or future officers, directors, or employees of
Bergdorf, NMG or their Affiliates;

 

(b) He will
not, whether on his own behalf or on behalf of any other individual,
partnership, firm, corporation or business organization, either directly or
indirectly solicit, induce, persuade, or entice, or endeavor to solicit,
induce, persuade, or entice, any person who is then employed by or otherwise
engaged to perform services for Bergdorf, NMG, or their Affiliates to leave
that employment or cease performing those services;

 

(c) He will
not, whether on his own behalf or on behalf of any other individual,
partnership, firm, corporation or business organization, either directly or
indirectly solicit, induce, persuade, or entice, or endeavor to solicit,
induce, persuade, or entice, any person who is then a customer, supplier, or
vendor of Bergdorf, NMG, or any of their Affiliates to cease being a customer,
supplier, or vendor of Bergdorf, NMG or their Affiliates or to divert all or
any part of such person’s or entity’s business from Bergdorf, NMG or their
Affiliates; and

 

(d) He will
not associate directly or indirectly, as an employee, officer, director, agent,
partner, stockholder, owner, representative, or consultant, with any Competitor
unless (1) he has advised Bergdorf in writing in advance of his desire to
undertake, such activities and the specific nature of such activities; (2) Bergdorf
has received written assurances (that will be designed, among other things, to
protect Bergdorf’s, NMG’s and their Affiliates’ goodwill, Confidential
Information, and other important commercial interests) from the Competitor and
Executive that are, in Bergdorf’s sole discretion, adequate to protect its
interests; (3) Bergdorf, in its sole discretion, has approved in writing
such association; and (4) Executive and the Competitor adhere to such
assurances. Executive shall not be in violation of this paragraph 3( d) solely
as a result of his investment in stock or other securities of a Competitor or
any of its Affiliates listed on a national securities exchange or actively
traded in the over-the-counter market if he and the members of his immediate
family do not, directly or indirectly, hold more than a total of one (1) percent
of all such shares of stock or other securities issued and outstanding.
Executive acknowledges and agrees that engaging in the Restricted Activities
described in this subparagraph would result in the inevitable disclosure or use
of Confidential Information for the Competitor’s benefit or to the detriment of
Bergdorf.

 

Executive
acknowledges and agrees that the restrictions contained in this paragraph 3 are
ancillary to an otherwise enforceable agreement, including without limitation
the mutual promises and undertakings set forth in paragraph 2 of this Agreement
and in the Incentive Agreements; that the promises and undertakings of Bergdorf
set forth in paragraph 2 of this Agreement and those of NMG in the Incentive
Agreements, Executive’s position and responsibilities with Bergdorf, and NMG
granting to Executive ownership in NMG in the form of NMG stock, give rise to
Bergdorf’s interest in restricting Executive’s post-employment activities; that
such restrictions are designed to enforce Executive’s promises and undertakings
set forth in this paragraph 3 and his common-law obligations and duties owed to
Bergdorf; that the restrictions are reasonable and necessary, are valid and
enforceable under New York law, and do not impose a greater restraint than
necessary to protect Bergdorf’s goodwill, Confidential Information, and other
legitimate business interests; that he will immediately notify Bergdorf in
writing should he believe or be advised that the restrictions are not valid or
enforceable under New York law or the law of any other state that he contends
or is advised is applicable; that the mutual promises and undertakings of
Bergdorf and Executive under paragraphs 2 and 3 of this Agreement are not
contingent on the duration of Executive’s employment with Bergdorf; and that
absent the promises and representations made by Executive in this paragraph 3
and paragraph 2 above, Bergdorf would require him to return any Confidential
Information in his possession, would not provide Executive with new and
additional Confidential Information, would not authorize Executive to engage in
activities that will create new and additional Confidential Information, and
would not enter into this Agreement, and NMG would not have entered into the
Incentive Agreements.

 

 

4. The Termination
Benefits constitute all of Bergdorf’s obligations to Executive with respect to
the end of Executive’s employment with Bergdorf. However, nothing in this
Agreement is intended to limit any earned, vested benefits (other than any
entitlement to severance or separation pay, if any) that Executive may have
under the applicable provisions of any benefit plan of Bergdorf in which
Executive is participating at the time of his termination of employment or
resignation.

 

5. Executive acknowledges
and agrees that Bergdorf would not have an adequate remedy at law and would be
irreparably harmed in the event that any of the provisions of paragraphs 2 or 3
of this Agreement were not performed in accordance with their specific terms or
were otherwise breached. Accordingly, Executive agrees that Bergdorf shall be
entitled to equitable relief, including preliminary and permanent injunctions
and specific performance, in the event Executive breaches or threatens to
breach any of the provisions of such paragraphs, without the necessity of
posting any bond or proving special damages or irreparable injury. Such
remedies shall not be deemed to be the exclusive remedies for a breach or
threatened breach of this Agreement by Executive, but shall be in addition to
all other remedies available to Bergdorf at law or equity. Executive
acknowledges and agrees that Bergdorf shall be entitled to recover its
attorneys’ fees, expenses, and court ‘costs, in addition to any other remedies
to which it may be entitled, in the event he breaches this Agreement. Executive
acknowledges and agrees that no breach by Bergdorf of this Agreement or failure
to enforce or insist on its rights under this Agreement shall constitute a
waiver or abandonment of any such rights or defense to enforcement of such
rights.

 

6. If the provisions of
paragraphs 2 or 3 of this Agreement are ever deemed by a court to exceed the
limitations permitted by applicable law, Executive and Bergdorf agree that such
provisions shall be, and are, automatically reformed to the maximum limitations
permitted by such law.

 

7. This Agreement
contains the entire agreement between the parties and supersedes all prior
agreements and understandings, oral or written, with respect to the ending of
Executive’s at-will employment and the subject matter of this Agreement. This
Agreement may not be changed orally. It may be changed only by written
agreement signed by the party against whom any waiver, change, amendment,
modification or discharge is sought to be enforced. This Agreement is to be
construed as a whole, according to its fair meaning, and not strictly for or
against any of the parties. If any provision of this Agreement shall be
determined by a court to be invalid or unenforceable, the remaining provisions
of this Agreement shall not be affected thereby, shall remain in full force and
effect, and shall be enforceable to the fullest extent permitted by applicable
law.

 

 

8. The validity,
performance and enforceability of this Agreement shall be determined and
governed by the laws of the State of New York, without regard to its conflict
of laws principles.  Bergdorf and Executive agree that the exclusive forum
for any action concerning this Agreement shall be in a court of competent
jurisdiction in New York County, New York, with respect to a state court, or
the United States District Court for the Southern District of New York, with
respect to a federal court. EXECUTIVE HEREBY CONSENTS TO THE EXERCISE OF
JURISDICTION OF A COURT IN THE EXCLUSIVE FORUM AND WAIVES ANY RIGHT HE MAY HAVE
TO CHALLENGE OR CONTEST THE REMOVAL AT ANY TIME BY BERGDORF TO FEDERAL COURT OF
ANY SUCH ACTION HE MAY BRING AGAINST IT IN STATE COURT. EXECUTIVE AND
BERGDORF FURTHER HEREBY MUTUALLY WAIVE THEIR RIGHT TO TRIAL BY JURY IN ANY
ACTION CONCERNING THIS AGREEMENT.

 

9. Executive’s promises
and obligations under this Agreement shall survive the end of his employment
with Bergdorf, and such promises and obligations shall inure to the benefit of
any Affiliates, subsidiaries, divisions, successors, or assigns of Bergdorf.

 

 

	
   

  	
   

  	
   

  	
  BERGDORF
  GOODMAN, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /S/  James J. Gold

  	
   

  	
  By:

  	
  /s/  Nelson
  A. Bangs

  
	
   

  	
   

  	
   

  	
  Nelson A. Bangs,
  Vice President

  

 

 

APPENDIX A

 

Definitions

 

1. “Affiliate” means,
with respect to any entity, any other corporation, organization, association,
partnership, sole proprietorship or other type of entity, whether incorporated
or unincorporated, directly or indirectly controlling or controlled by or under
direct or indirect common control with such entity.

 

2. “Cause” means, in
Bergdorf’s reasonable judgment, (i) a breach of duty by Executive in the
course of his employment involving fraud, acts of dishonesty (other than
inadvertent acts or omissions), disloyalty, or moral turpitude; (ii) conduct
that is materially detrimental to Bergdorf, monetarily or otherwise, or
reflects unfavorably on Bergdorf or Executive to such an extent that Bergdorf’s
best interests reasonably require the termination of Executive’s employment; (iii) acts
of Executive in violation of his obligations under this Agreement or at law; (iv) Executive’s
failure to comply with or enforce Bergdorf’s policies concerning equal
employment opportunity, including engaging in sexually or otherwise harassing
conduct; (v) Executive’s repeated insubordination or failure to comply
with or enforce other personnel policies of Bergdorf or its Affiliates; (vi) Executive’s
failure to devote his full working time and best efforts to the performance of
his responsibilities to Bergdorf or its Affiliates; or (vii) Executive’s
conviction of or entry of a plea agreement or consent decree or similar
arrangement with respect to, a felony, other serious criminal offense, or any
violation of federal or state securities laws; provided, however, that with
respect to items (v) and (vi), Executive has been provided prior written
notice of the failure and afforded a reasonable opportunity to correct same.

 

3. “Competitor” means (i) each
of Saks Incorporated, Nordstrom, Inc., Barneys New York, Inc., any
Affiliate of any of them, and any other person or entity that owns, operates or
controls any of them or any of their Affiliates, directly or indirectly; (ii) the
successors to or assigns of the persons or entities identified in (i); and (iii) any
other person or entity (and any Affiliate of such person or entity) that owns,
operates or controls, directly or indirectly, a luxury specialty retail store.

 

4. “Confidential
Information” shall mean, without limitation, all documents or information, in
whatever form or medium, concerning or evidencing sales; costs; pricing;
strategies; forecasts and long range plans; financial and tax information;
personnel information; business, marketing and operational projections, plans
and opportunities; and customer, vendor, and supplier information; but
excludin1! any such information that is or becomes generally available to the
public other than as a result of any breach of this Agreement or other
unauthorized disclosure by Executive.

 

5. “Total Disability”
means that, in Bergdorf’s reasonable judgment, either (i) Executive has
been unable to perform his duties because of a physical or mental impairment
for 80% or more of the normal working days during six consecutive calendar months
or 50% or more of the normal working days during twelve consecutive calendar
months, or (ii) Executive has become totally and permanently incapable of
performing the usual duties of his employment with Bergdorf on account of a
physical or mental impairment.Exhibit 10.59

 

Confidential Treatment
Requested.

 

Certain
material (indicated by asterisks) has been omitted from this document and filed
separately with the Securities and Exchange Commission pursuant to a request
for confidential treatment.

 

10th AMENDMENT TO CREDIT CARD PROGRAM AGREEMENT

 

This 10th Amendment (the “10th Amendment”)
is entered into this 17th day of December 2009 by and among The Neiman
Marcus Group, Inc. and Bergdorf Goodman, Inc. on the one hand, and
HSBC Private Label Corporation (formerly, Household Corporation) and HSBC Bank
Nevada, N.A. on the other hand, to that certain Credit Card Program Agreement,
dated June 8, 2005 (as amended, the “Agreement”), among the foregoing
parties.  The 10th Amendment shall have an effective date as of March 1st,
2009.  All capitalized terms used herein
and not otherwise defined shall have the meanings given to them in the
Agreement.

 

1.  The following new defined terms shall be
added in Section 1.1 of the Agreement in the appropriate alphabetical
order:

 

“10th Amendment Measurement Period” means the period
from (and including) March 1, 2009 through June 30, 2010.

 

“Base
Shared Receivables Write-Off Amount” means with respect to the completed
calendar months of the 10th Amendment Measurement Period, the amount equal to
the (i) Reference Period Average Gross Receivables, multiplied by (ii) the
excess, if any, of (A) the Base Shared Receivables Write-Off Percentage
for such period over (B) [***] (it being understood, for the avoidance of
doubt, that if the Base Shared Receivables Write-Off Percentage is less than or
equal to [***] then the Base Shared Receivables Write-Off Amount shall be zero)
(iii) divided by 12 and (iv) multiplied by the number of completed
calendar months following (and including) March 2009.

 

“Base
Shared Receivables Write-Off Cap” means the Base Shared Receivables Write-Off
Percentage on the day when the Rolling 12 Month Receivables Net Write-Off Ratio
first exceeds [***].

 

“Base
Shared Receivables Write-Off Percentage” means, with respect to the completed
calendar months of the 10th Amendment Measurement Period,
the percentage equal to (i) Net Write-Offs for such period divided by (ii) Reference
Period Average Gross Receivables for such period (Hi) multiplied by 12 and (iv) divided
by the number of completed calendar months following (and including) March 2009;
provided that in no event shall the Base Shared Receivables Write-Off
Percentage exceed the Base Shared Receivables Write-Off Cap.

 

“Net
Finance Charge Income” means the total dollar amount of revenue received as a
result of finance charges assessed upon Cardholders, less any finance charge
waivers granted.

 

“Optional
Letter of Credit” means an irrevocable standby letter of credit naming Bank as
the beneficiary thereof and having an expiration date no earlier than [***],
issued and confirmed by an issuing bank selected by NMG and reasonably
acceptable to Bank and in customary form, and in a face amount equal to the
amount as referenced in Section 7.1(e)(i).

 

 

“Optional
Shared Receivables Write-Off Amount” means with respect to the completed
calendar months of the 10th Amendment Measurement Period, the amount equal to
the (i) Reference Period Average Gross Receivables, multiplied by (ii) the
excess, if any, of (A) the Optional Shared Receivables Write-Off
Percentage for such period over (B) the Base Shared Receivables Write-Off
Cap (it being understood, for the avoidance of doubt, that if the Optional
Shared Receivables Write-Off Percentage is less than or equal to the Base
Shared Receivables Write-Off Cap then the Optional Shared Receivables Write-Off
Amount shall be zero) (iii) divided by 12 and (iv) multiplied by the
number of completed calendar months following (and including) March 2009.

 

“Optional
Shared Receivables Write-Off Cap” means the Optional Shared Receivables
Write-Off Percentage on the day when the Rolling 12 Month Receivables Net
Write-Off Ratio first exceeds [***].

 

“Optional
Shared Receivables Write-Off Percentage” means, with respect to the completed
calendar months of the 10th Amendment Measurement Period,
the percentage equal to (i) Net Write-Offs for such period divided by (ii) Reference
Period Average Gross Receivables for such period (iii) multiplied by 12
and (iv) divided by the number of completed calendar months following (and
including) March 2009; provided that in no event shall the Optional Shared
Receivables Write-Off Percentage exceed the Optional Shared Receivables
Write-Off Cap.

 

“Receivables
Net Write-Off Ratio” means with respect to any period, the percentage equal to (i) Net
Write-Offs during such period divided by (ii) Reference Period Average
Gross Receivables during such period.

 

“Reference
Period Average Gross Receivables” means with respect to any measurement period,
the average of the Gross Receivables on the last day of each calendar month
during such measurement period.

 

“Rolling
12 Month Receivables Net Write-Off Ratio” means, with respect to any calendar
month, the Receivables Net Write-Off Ratio for the period of 12 consecutive
calendar months ending on and including the month immediately preceding such
calendar month.

 

“Third
Change of Terms (hereinafter, “Third COT:)” means the prior alteration of the
Account terms, effective as of January 13, 2009 and as previously mutually
agreed by the Parties per the Letter of Understanding (dated October 22,
2008), in which the minimum rate of Finance Charge was increased to a Daily
Periodic Rate of [***] (corresponding to a [***] Annual Percentage Rate).

 

“Third
COT Finance Charge Income” means, with respect to the 10th Amendment
Measurement Period,[***] of the Net Finance Charge Income that is generated
from the Gross Receivables during such measurement period.

 

“Third
COT Incremental Net Write Offs” shall be equal to (i) $0 per month during
the period beginning on [***] and ending on [***] and (ii)

 

2

 

[***]
per month during the period beginning on [***] and ending on [***].”

 

2.
The following defined terms shall replace the corresponding and existing defined
terms of the same name:

 

“Net
Write-Offs” means, with respect to Accounts that have been written off in a
particular period in accordance with the credit and collection policies
contained in the Risk Management Policies, (a) the portion of the total Gross
Receivables charged-off as uncollectible to the written-off Accounts in
accordance with such credit and collection policies (and not as a result of
fraud losses) during such period minus (b) any recoveries,
including sales tax recoveries, received during such period on previously
written-off Accounts, and minus (c) the Third COT Incremental Net Write
Offs.”

 

“Gross
Financing Income” means, with respect to any period, an amount equal to the sum
of assessed or accrued Net Finance Charge Income, late fees, NSF fees and any
other interest or fees payable under the Program and any amounts paid by NMG to
Bank pursuant to Section 4.10 or 4.11 during such period less the sum of
fee waivers, the amount required under GAAP to be amortized by Bank as deferral
amortization pursuant to Financial Accounting Standard No. 91 during such
period, any amounts paid by Bank to NMG pursuant to Section 4.10 or 4.11
during such period, and the Third COT Finance Charge Income. Fees from Approved
Ancillary Products are not included as part of Gross Financing Income.

 

“Variable
Break-Even Margin” means (i) Gross Financing Income plus (ii) the
amounts paid by NMG pursuant to Section 9. 1(a)(viii), 9.1(a)(x) and
9.1(a)(xi) minus (iii) Funding Costs minus (iv) Net Write-Offs minus (v) the
Total of All Amounts Bank Paid to NMG minus (vi) Marketing Expenses minus (vii) Fraud
Loss minus (viii) Standard Variable Operating Expenses. As used to
determine Variable Break-Even Margin, the following term shall have the
following meaning:

 

“Risk
Adjusted Margin” means, with respect to the RAM Measurement Period (or in the
case of any interim payment pursuant to Section 9.1(a)(vii) and
9.1(a)(x), the relevant Reference Period), the percentage equivalent of a
fraction equal to (A) (i) Gross Financing Income for such period, minus
(ii) Net Write-Offs for such period, minus (iii) Funding
Costs for such period, plus (iv) the total of all amounts paid by
NMG pursuant to Section 9.1(a)(viii), 9.l(a)(x), and 9.l(a)(xi) at any
time during such period divided by (B) the Average Gross
Receivables for such period.”

 

3. Section 3.2(g) of the Agreement is amended by striking the
existing subclause (v)(A) thereunder, and replacing it with the following:

 

“(A) will
not affect a group of Accounts for which the Rolling 12 Month Receivables Net
Write-Off Ratio reduced in respect of each ten (10) point Next Gen score
band (e.g. [***]) is less than [***]  (as set forth in the report
provided by Bank to NMG).  Such report
shall be provided to NMG on a quarterly basis beginning in November 2009
and at least 30 days in advance of making any such changes and shall
demonstrate the most recent Rolling 12 Month

 

3

 

Receivables
Net Write-Off Ratio (Example attached as Exhibit D) for each such group of
Accounts that were in existence on the last day of the Month preceding the
first Month included in the Rolling 12 Month Receivables Net Write-Off Ratio.
Bank may blend groups of Accounts in adjacent ten (10) point Next Gen
score bands together (e.g. [***] and [***]) so long as (x) the Rolling 12
Month Receivables Net Write-Off Ratio reduced for the group of Accounts in the
highest ten (10) point Next Gen score band (e.g., [***] would be higher
than [***]) of the groups to be blended exceeds [***] and (y) the total
blended Rolling 12 Month Receivables Net Write-Off Ratio reduced exceeds [***]
for the combined groups. Notwithstanding the foregoing, Bank may implement
changes to Risk Management Policies in respect of a subgroup of Accounts within
an individual ten (10) point Next Gen score band whose Rolling 12 Months
Receivables Net Write-Off Ratio is less than [***], if, by utilizing other risk
attributes that historically correlate (consistent with Bank’s past practice)
to the likelihood of Net Write-Offs, such subgroup of Accounts within such ten (10) point
Next Gen score band has a Rolling 12 Month Receivables Net Write-Off Ratio of
greater than [***], as set forth in the report provided by Bank to NMG (Example
attached as Exhibit E).”

 

4. Section 3.2(g) of the Agreement is
amended by striking the existing subclause (vi), and replacing it with the
following:

 

“(vi) if
at any time during the Term, the Rolling 12 Month Receivables Net Write-Off
Ratio is greater than [***] (or [***] in the event NMG exercises the
Incremental Loss Sharing Option in accordance with 7.1(e )(i), for so long as
the Rolling 12 Month Receivables Net Write-Off Ratio remains greater than [***]
(or [***] in the event NMG exercises the Incremental Loss Sharing Option in accordance
with 7.1(e)(i), changes to Risk Management Policies that are designed to reduce
the Net Write-Off Ratio, provided that such changes will not affect a group of
Accounts for which the Rolling 12 Month Receivables Net Write-Off Ratio reduced
in respect of each ten (10) point Next Gen score band (e.g. [***]) is less
than [***] (or [***] in the event NMG exercises the Incremental Loss Sharing
Option in accordance with 7.1(e)(i) (as set forth in the report provided
by Bank to NMG).  Such report shall be
provided to NMG on a quarterly basis beginning in November 2009 and at
least 30 days in advance of making any such changes and shall demonstrate the
most recent Rolling 12 Month Receivables Net Write-Off Ratio (Example attached
as Exhibit D) for each such group of Accounts that were in existence on
the last day of the Month preceding the first Month included in the Rolling 12
Month Receivables Net Write-Off Ratio. 
Bank may blend groups of Accounts in adjacent ten (10) point Next
Gen score bands together (e.g. [***] and [***]) so long as (x) the Rolling
12 Month Receivables Net Write-Off Ratio reduced for the group of Accounts in
the highest ten (10) point Next Gen score band (e.g., [***] would be
higher than [***]) of the groups to be blended exceeds [***] (or [***] in the
event NMG exercises the Incremental Loss Sharing Option in accordance with
7.1(e)(i) and (y) the total blended Rolling 12 Month Receivables Net
Write-Off Ratio reduced exceeds [***] (or [***] in the event NMG exercises the
Incremental Loss Sharing Option in accordance with 7.1(e)(1) for the
combined groups. Notwithstanding the foregoing, Bank may implement changes to
Risk

 

4

 

Management
Policies in respect of a subgroup of Accounts within an individual ten (10) point
Next Gen score band whose Rolling 12 Month Receivables Net Write-Off Ratio is
less than [***] (or [***] in the event NMG exercises the Incremental Loss
Sharing Option in accordance with 7.I(e)(i), if, by utilizing other risk attributes
that historically correlate (consistent with Bank’s past practice) to the
likelihood of Net Write-Offs, such subgroup of Accounts within such ten (10) point
Next Gen score band has a Rolling 12 Month Receivables Net Write-Off Ratio of
greater than [***] (or [***] in the event NMG exercises the Incremental Loss
Sharing Option in accordance with 7.1(e)(i)), asset forth in the report
provided by Bank to NMG (Example attached as Exhibit E.).”

 

5.              The existing Section 7.1(d) is
amended by striking the existing Section 7.1(d) and replacing it with
the following new Section 7.1(d):

 

“(d) On each “Report Date” reflected on Schedule 7.1(d), Bank will
deliver to NMG a calculation of (i) the Risk Adjusted Margin, the Net
Write-Off Ratio, the Receivables Net Write-Off Ratio, the Rolling 12 Month
Receivables Net Write-Off Ratio, Variable Break-Even Margin, Third COT Finance
Charge Income and each component of each of the foregoing (including, in the
case of Gross Financing Income, separately reported amounts in respect of
finance charges, late fees and fee waivers), in each case calculated as if the
Reference Period were the period indicated as such in such Schedule and (ii) the
dollar amount that would be payable by Bank to NMG (or by NMG to Bank) pursuant
to each of Section 9.1(a)(vii)(A) and (B) and 9.1(a)(viii) if
such payment were due in respect of the reported period.  Such calculations shall be in such form and
shall reflect such detail with respect to each of the foregoing items, and each
component thereof) as shall be mutually agreed upon by the Parties.  The financial information set forth in such
reports from Bank is derived from its General Ledger (GL) and/or its supporting
financial accounting subsystems.”

 

6.              The existing
Schedule 7.1(d) is amended by striking the existing Schedule 7.1(d), and
replacing with the new Schedule 7.1(d) attached hereto.

 

7.              The following
shall be added as the new Sections 7.1(e)(i) and (ii) of the
Agreement:

 

“(i) Bank
will monitor the Rolling 12 Month Receivables Net Write-Off Ratio and report to
NMG within three (3) Business Days of such ratio reaching [***], and
thereafter Bank will report in writing and certify the previous month’s Rolling
12 Month Receivables Net Write-Off Ratio to NMG by noon Central Standard Time
on the following Business Day.  If the
Rolling 12 Month Receivables Net Write-Off Ratio exceeds [***] as reported and
certified by Bank, NMG may, at its sole discretion, exercise its right to pay
[***] of the Optional Shared Receivables Write-Off Amount in accordance with Section 9.1(a)(xi)
(the “Incremental Loss Sharing Option”) by notifying Bank in writing within
three (3) Business Days of first receiving notice in writing from Bank of
the Rolling 12 Month Receivables Net Write-Off Ratio exceeding [***]. In order
to

 

5

 

exercise
the Incremental Loss Sharing Option, within thirty (30) days of notifying Bank,
NMG must secure the Optional Letter of Credit in an amount equal to: (x) [***]
multiplied by (y) Reference Period Average Gross Receivables.  The Optional Letter of Credit shall serve as
security for the performance by NMG of its obligation under Section 9.1(a)(xi)
to the extent NMG exercises its Incremental Loss Sharing Option and may be
drawn on solely by Bank after [***] if any amounts payable by NMG under Section 9.1(a)(xi)
are not paid by NMG on [***].

 

(ii) If
NMG fails to provide the Optional Letter of Credit in accordance with the
Agreement, including but not limited to Section 7.I(e)(i), without
limiting any remedies afforded to Bank, NMG shall thereby waive the right to
exercise the Incremental Loss Sharing Option and Bank may immediately implement
Risk Management Policy changes in accordance with section 3.2(g)(vi).

 

8.              Section 9.I(a)(ix) shall
be renumbered to be Section 9.1(a)(xii) of the Agreement, and shall be
amended to read as follows:

 

“(xii)
Set forth on Schedule 9.I(a)(xii), are illustrative calculations of the
payments described in clauses (vii), (viii), (ix) and (x) above.”

 

9.              The existing
Schedule 9.I(a)(ix) is amended by striking the existing Schedule 9.1(a)(ix) and
replacing it with the new Schedule 9.1(a)(ix) attached hereto.

 

10. The following shall be
added as new Sections 9.1(a)(ix), (x) and (xi) of the Agreement:

 

“(ix) On
each Payment Date set forth on Schedule 9.1(a)(ix) with respect to the
measurement periods set forth on Schedule 9.1(a)(ix), Bank will pay NMG [***]
of the Third COT Finance Charge Income less [***] of the Third COT Incremental
Net Write Offs.

 

(x) NMG
will pay Bank [***] of the Base Shared Receivables Write-Off Amount, if any,
with respect to the 10th Amendment Measurement Period, with interim
annual payments in respect of the total amount payable (calculated on an
estimated basis based on the relevant Reference Period) being reflected on and
paid pursuant to each Year-End Settlement Sheet, and with the final payment in
respect of the 10th Amendment Measurement Period being due and
payable on September 1, 2010; provided, however, that, in calculating any
payment in respect of the total amount owing by NMG pursuant to this clause
(x), there shall be deducted from such payment the net amount previously paid
by NMG pursuant to this clause (x) (after adding all previous interim
payments and deducting all previous interim refunds. paid by Bank to NMG
pursuant to the following sentence of this clause (x).  In the event that the amount owing by NMG to
Bank pursuant to this clause (x) is less than the net amount already paid
by NMG to Bank pursuant to this clause (x) (after applying this sentence),
Bank shall refund

 

6

 

to
NMG the excess of the net amount previously paid by Bank over the total amount
payable by Bank in respect of the 10th Amendment
Measurement Period (or the relevant Reference Period, as applicable).  For the avoidance of doubt, in no event shall
the total payments by Bank pursuant to this clause (x) exceed the total
amounts received by it from NMG pursuant to this clause (x).

 

(xi)
If NMG exercises the Incremental Loss Sharing Option, NMG will pay Bank [***] of the
Optional Shared Receivables Write-Off Amount, if any, with respect to the 10th Amendment Measurement Period, on [***].”

 

All
capitalized terms not otherwise defined herein shall have the same meaning
afforded them in the Agreement. Except as otherwise modified herein, the terms
and conditions of the Agreement remain in full forced and effect.

 

AGREED
TO AND EXECUTED on this the 17th day of December 2009.

 

	
  HSBC BANK NEVADA, N.A.

  	
   

  	
  HSBC
  PRIVATE LABEL CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Brian D. Hughes

  	
   

  	
  By:

  	
  /s/
  Brian D. Hughes

  
	
  Its:

  	
  Executive
  Vice President

  	
   

  	
  Its:

  	
  Executive
  Vice President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  THE NEIMAN MARCUS GROUP, INC.

  	
   

  	
  BERGDORF
  GOODMAN, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  William S. Hough

  	
   

  	
  By:

  	
  /s/
  Nelson A. Bangs

  
	
  Its:

  	
  VP
  — Credit Services

  	
   

  	
  Its:

  	
  Vice
  President

  

 

 

Schedule 7.1(d)

Reporting

 

The
calculation of Risk Adjusted margin, the Net Write-Off Ratio, Variable Break
Even Margin and each component of the forgoing will begin on [***] and will be
measured quarterly (through the end of the RAM Measurement Period) and payments
will be contemplated by Section 9.1(a)(vii) and (viii) shall be
settled annually based on the below:

 

	
  Measurement Period

  	
   

  	
  Report Date

  	
   

  	
  Payment Date

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  

 

Schedule 9.1(a)(ix)

Reporting

 

The
calculation of the Shared Receivables Write-Off Amount, Third COT Finance
Charge Income, the Third COT Incremental Net Write Offs and each component of
the forgoing will begin on [***] and will be measured
quarterly (through the end of the 10th Amendment
Measurement Period) and payments will be contemplated by Section 9.1(a)(vii),
(viii), (ix) and (x) shall be settled based on the bellow:

 

	
  Measurement Period

  	
   

  	
  Report Date

  	
   

  	
  Payment Date

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  

 

 

Schedule 9.1(a)(xii)

Illustrative Calculations

 

2007 Actual Data

 

	
  Average
  Gross Receivables

  	
   

  	
  [***]

  
	
   

  	
   

  	
   

  
	
  Net Credit Sales

  	
   

  	
  [***]

  
	
  Number of Average Active Accounts

  	
   

  	
  [***]

  
	
   

  	
   

  	
   

  
	
  Gross
  Finance Income

  	
   

  	
  [***]

  
	
   

  	
   

  	
   

  
	
  Less Cost of Funds (actual internal charge)

  	
   

  	
  [***]

  
	
  Less Net Write-Offs

  	
   

  	
  [***]

  
	
   

  	
   

  	
  [***]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [***]

  
	
   

  	
   

  	
   

  
	
  Increased
  late fee due to 6th amendment Adjust

  	
   

  	
  [***]

  
	
   

  	
   

  	
  [***]

  
	
   

  	
   

  	
   

  
	
  Risk
  Adjusted Margin

  	
   

  	
  [***]

  

 

Variable Margin

 

	
  Gross
  Finance Income**

  	
   

  	
  [***]

  
	
  Less
  Cost of Funds*

  	
   

  	
  [***]

  
	
  Less
  Net Write-Offs

  	
   

  	
  [***]

  
	
  Less
  All Payments Bank paid to NMG

  	
   

  	
  [***]

  
	
  Less
  Fraud Loss

  	
   

  	
  [***]

  
	
  Less
  Marketing Expense

  	
   

  	
  [***]

  
	
  Less Standard Variable Expenses

  	
   

  	
  [***]

  
	
  Variable
  Margin

  	
   

  	
  [***]

  

 

*Avg
1 months Libor for 2007 +20 bps=[***] times [***] of Gross
Receivables ([***]).

**Includes income from [***].

 

 

Example of 2010 Year End
Settlement

 

 

[***]

 

 

Exhibit D

 

Exhibit D — 12mo average balance to cumulative Net CO

 

	
  FICO

  	
   

  	
  All
  Accounts as of 31

  Dec 2007

  	
   

  	
  Avg
  Balance

  (January 08 -

  December 08)

  	
   

  	
  Cum Net
  Charge-

  offs (January 08 -

  December 08

  	
   

  	
  % net
  CO/Avg

  Balance

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  Total

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  

 

[***]

[***]

[***]

[***]

[***]

 

 

Exhibit E

 

Exhibit E
— 12 mo average balance cumulative

 

	
  Vintage

  	
   

  	
  Avg
  Balance

  January 08-

  December 08)

  	
   

  	
  Cum Net
  Charge-

  Offs (January 08-

  December 08_

  	
   

  	
  % Net CO

  / Avg

  Balance

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  

 

[***]

[***]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}]]