Document:

zynex8kex106_9232008.htm

     

    
      

      

    

     

    Exhibit 10.6

    

     

    

     

    BUSINESS
ASSOCIATE AGREEMENT

     

     

    

     

    This
Business Associate Agreement (“Agreement”) is entered into
this 22nd day of September, 2008, among Marquette Business Credit, Inc., d/b/a
Marquette Healthcare Finance, Standard Insurance Center, 900 SW Fifth Avenue,
Suite 1920, Portland, Oregon 97204 (“Marquette”), Zynex, Inc., and
Zynex Medical, Inc. f/d/b/a Stroke Recovery Systems, 8002 Southpark Circle,
Suite 100, Littleton, Colorado 80120 (collectively, “Provider”).

     

    Provider
is obligated to Marquette pursuant to a Loan and Security Agreement and other
loan documents (collectively, the “Loan
Documents”).  Pursuant to the terms of the Loan Documents and
to effectuate Marquette’s lending to Provider, Provider will provide Marquette
with protected health information subject to the HIPAA Privacy Rule, defined
below.

     

    The
parties intend by this Agreement to comply with the requirements of 45 CFR §
164.504(e), which permits Provider to Disclose Protected Health Information to
Marquette, and Marquette to receive or create Protected Health Information on
behalf of Provider, under a written agreement meeting the requirements of that
regulation.  The parties therefore agree as follows:

     

    1. Definitions.

     

    1.1 Generally.  Capitalized
terms used, but not otherwise defined, in this Agreement have the same meaning
as is given to those terms by the Privacy Rule, Security Rule, and the Loan
Documents.

     

    1.1.1 “Electronic Protected Health
Information” shall have the same meaning as the term “electronic
protected health information” in 45 CFR § 160.103, limited, however, to the
information created or received by Marquette from or on behalf of
Provider.

     

    1.1.2 "Privacy Rule" means 45 CFR
Part 160 and Part 164, Subparts A and E, which implement certain provisions of
the Health Insurance Portability and Accountability Act of 1996, Pub. L. No.
104-191 (“HIPAA”).

     

    1.1.3 “Protected Health Information”
shall have the same meaning as the term “protected health information” in 45 CFR
§ 164.501.  Unless otherwise specified, Protected Health Information
includes Electronic Protected Health Information.

     

    1.1.4 “Security Incident” shall have
the same meaning as the term “security incident” in 45 CFR §
164.304.

     

    
      
         

      

      
        Exhibit
10.6 - Page 1 of 7

        
          

        

      

      
         

      

    

    

     

    1.1.5 “Security Rule” means the
Security Standards at 45 CFR Part 160, Part 162, and Part 164, subparts A
and C.

     

    2. Obligations and Activities of
Marquette.

     

    2.1 Permitted Uses and
Disclosures.  Marquette shall not Use or Disclose Protected
Health Information other than as permitted or required by this Agreement or as
Required By Law.

     

    2.2 Safeguards.

     

    2.2.1 Marquette
shall Use appropriate safeguards to prevent Use or Disclosure of Protected
Health Information other than as provided for by this Agreement.

     

    2.2.2 Marquette
shall implement administrative, physical, and technical safeguards in accordance
with the Security Rule that reasonably and appropriately protect the
confidentiality, integrity, and availability of Electronic Protected Health
Information that Marquette creates, receives, maintains, or transmits by or on
behalf of Provider.

     

    2.3 Report of
Violations.

     

    2.3.1 Marquette
will report to Provider any Use or Disclosure of Protected Health Information
not provided for by this Agreement of which Marquette becomes
aware.

     

    2.3.2 Marquette
will report to Provider any Security Incident of which Marquette becomes
aware.

     

    2.4 Subcontractors or
Agents.  Marquette shall obtain a written agreement with any
agent or subcontractor to whom Marquette provides Protected Health Information
created or received for or from Provider.  Such written agreement
shall provide that such agent or subcontractor is bound by the same restrictions
and conditions that apply through this Agreement to Marquette with respect to
such Protected Health Information.

     

    2.5 Access.  If
requested by Provider, Marquette shall provide Provider in a reasonable time and
manner access to Protected Health Information in a Designated Record
Set.  If an Individual requests access to Protected Health Information
from Marquette directly, Marquette will forward such request to Provider and
take no direct action on such request.  If Provider determines such
request is to be granted, then Marquette shall cooperate with Provider to
provide, at Provider’s direction, Protected Health Information to such
Individual in order to meet the requirements of 45 CFR §
164.524.  Denials of access to Protected Health Information as
requested by an Individual are solely the responsibility of
Provider.

     

    
      
         

      

      
        Exhibit
10.6 - Page 2 of 7

        
          

        

      

      
         

      

    

    

     

    2.6 Amendments to Protected Health
Information.

     

    2.6.1 If
Provider requests that Marquette make any amendment(s) to Protected Health
Information in a Designated Record Set, then Marquette will forward the relevant
records to Provider for amendment and accept and incorporate such amendment(s)
in the Protected Health Information as Provider directs or agrees to make
pursuant to 45 CFR § 164.526.

     

    2.6.2 In the
event an Individual directly requests Marquette to amend Protected Health
Information in a Designated Record Set, Marquette will forward the relevant
records to Provider and take no direct action on the request.  If
Provider determines such request is to be granted, then Marquette will cooperate
with Provider to amend, at Provider’s direction, Protected Health Information in
order to meet the requirements of 45 CFR § 164.526.  Denials of
requests for amendment of Protected Health Information as requested by an
Individual are solely the responsibility of Provider.

     

    2.7 Records
Available.  Marquette shall make its internal practices, books,
and records relating to the Use and Disclosure of Protected Health Information
created or received for or from Provider available to the Provider, or to the
Secretary or the Secretary’s designee, in a reasonable time and manner for
purposes of determining Provider’s compliance with the Privacy
Rule.

     

    2.8 Disclosure
Record.  Marquette shall document Disclosures of Protected
Health Information and information related to such Disclosures as are required
for Provider to respond to a request by an Individual for an accounting of
Disclosures of Protected Health Information in accordance with 45 CFR §
164.528.

     

    2.9 Accounting of
Disclosures.

     

    2.9.1 Marquette
shall make available to Provider in a reasonable time and manner information
collected in accordance with Section 2.8 of this Agreement, so as to permit
Provider to respond to a request by an Individual for an accounting of
Disclosures of Protected Health Information in accordance with 45 CFR §
164.528.

     

    2.9.2 In the
event of a request for an accounting made directly to Marquette by an
Individual, Marquette will forward such request to Provider and will take no
direct action on the request.  If Provider determines to provide an
accounting to the Individual, then Marquette will make available to Provider the
information collected pursuant to Section 2.8 of this Agreement.  All
preparation and delivery of accountings requested by Individuals shall be solely
the responsibility of Provider.

     

    
      
         

      

      
        Exhibit
10.6 - Page 3 of 7

        
          

        

      

      
         

      

    

    

     

    3. Permitted Uses and Disclosures by
Marquette.

     

    3.1 General Use and Disclosure.
Except as otherwise limited in this Agreement, Marquette may Use or Disclose
Protected Health Information as is minimally necessary to lend, enforce security
interests, and perform functions, activities, or services for, or on behalf of,
Provider as specified in the Loan Documents.  No Use or Disclosure of
Protected Health Information may be made by Marquette which would violate the
Privacy Rule or the policies and procedures of the Provider if done by
Provider.

     

    3.2 Specific Uses and
Disclosures.  Except as otherwise limited in this
Agreement:

     

    3.2.1 Marquette
may Use Protected Health Information for the proper management and
administration of Marquette and to carry out the legal responsibilities of
Marquette.

     

    3.2.2 Marquette
may Disclose Protected Health Information for the proper management and
administration of Marquette’s business if such Disclosures are Required By Law
or Marquette obtains reasonable assurances from the person to whom the
information is Disclosed that it will remain confidential and Used or further
Disclosed only as Required By Law or for the purpose for which it was Disclosed
to the person, and the person notifies Marquette of any instances of which it is
aware that the confidentiality of the information has been
breached.

     

    3.2.3 Marquette
may Use Protected Health Information to provide Data Aggregation services to
Provider as permitted by 45 CFR § 164.504(e)(2)(i)(B).

     

    3.2.4 Marquette
may Use Protected Health Information to report violations of law to appropriate
Federal and State authorities, consistent with 45 CFR §
164.502(j)(1).

     

    3.2.5 Marquette
may Use Protected Health Information for the specific Uses and Disclosures
permitted by this Section 3.2 only as is minimally necessary for such Uses and
Disclosures.

     

    3.3 Legal Process.  If
Marquette receives a subpoena, a civil, criminal, or administrative demand, or
other legal process seeking production of or access to Protected Health
Information created or received for or from Provider, then Marquette will
promptly notify Provider of receipt of such legal
process.  Contemporaneously with such notice to Provider, Marquette
will relinquish to Provider all control over such Protected Health Information
and the assertion of any defenses or privileges that may apply to production of
such Protected Health Information.  Provider shall thereafter defend
and hold harmless Marquette respecting such legal process.  In no
event, however, shall Marquette have an obligation under this Agreement to
disobey any order of any court or other government tribunal respecting
production of or access to Protected Health Information.

     

    
      
         

      

      
        Exhibit
10.6 - Page 4 of 7

        
          

        

      

      
         

      

    

    

     

    4. Obligations of
Provider.

     

    4.1 Notice of Privacy
Practices.  Provider shall notify Marquette of any
limitation(s) in, or revisions to, its notice of privacy practices provided in
accordance with 45 CFR § 164.520, to the extent that such limitation or revision
may affect Marquette's Use or Disclosure of Protected Health
Information.

     

    4.2 Notice of
Revocation.  Provider shall notify Marquette of any changes in,
or revocation of, authorization by an Individual to Use or Disclose Protected
Health Information, to the extent that such changes may affect Marquette's Use
or Disclosure of Protected Health Information.

     

    4.3 Notice of
Restrictions.  Provider shall notify Marquette of any
restriction on the Use or Disclosure of Protected Health Information that
Provider has agreed to in accordance with 45 CFR § 164.522, to the extent that
such restriction may affect Marquette's Use or Disclosure of Protected Health
Information.

     

    5. Permissible Requests by
Provider.   Provider may not request Marquette to Use or
Disclose Protected Health Information in any manner that would be impermissible
under the Privacy Rule if done by Provider; provided, however, Marquette may Use
or Disclose Protected Health Information for Data Aggregation or management and
administrative activities of Marquette, as provided in Section 3.

     

    6. Term and
Termination.

     

    6.1 Term.  Unless
terminated for cause as specified below, the term of this Agreement shall extend
from the date of execution until (a) all of Provider’s obligations to Marquette
under any of the Loan Documents have been fully performed; and (b) all of the
Protected Health Information created or received for or from Provider is
destroyed or returned to Provider, or, if it is not feasible to return or
destroy all such Protected Health Information, protections are extended to such
Protected Health Information retained by Marquette in accordance with the
provisions of Section 7.2.

     

    6.2 Termination for
Cause.  Upon a material breach of this Agreement by Marquette,
Provider shall provide written notice of such material breach to Marquette and
afford Marquette not less than 30 days to cure such breach.  In the
event that Marquette fails to cure such breach within 30 days, Provider may
terminate this Agreement for cause.

     

    7. Return or Destruction of Protected
Health Information.

     

    7.1 Upon
Termination.  Except as otherwise provided herein, upon
termination for any reason, Marquette will return to Provider or destroy all
Protected Health Information created or received for or from
Provider.  This provision applies to Protected Health Information in
the possession of subcontractors or agents of Marquette.  Marquette
may not retain copies of Protected Health Information.

     

    
      
         

      

      
        Exhibit
10.6 - Page 5 of 7

        
          

        

      

      
         

      

    

    

     

    7.2 Maintenance of Protected Health
Information.  If Marquette determines that returning or
destroying any Protected Health Information created or received for or from
Provider is not feasible, then Marquette shall (a) provide to Provider
notification of the conditions that make return or destruction of the affected
Protected Health Information not feasible; and (b) extend the protections of
this Agreement to such Protected Health Information and limit further Uses and
Disclosures of such Protected Health Information to those purposes that make the
return or destruction not feasible for so long as Marquette maintains such
Protected Health Information.  The obligations of this Section 7.2
survive termination of this Agreement or the Loan Documents.

     

    8. Marquette’s Right to a
Receiver.  In the event that this Agreement terminates for any
reason, Provider defaults under the Loan Documents, or Marquette is otherwise in
any way denied access to Protected Health Information prior to fulfillment of
all of Provider’s obligations under the Loan Documents and such termination or
denial of access to the Protected Health Information would hinder in any way
Marquette’s administration or enforcement of the Loan Documents, then Marquette
shall be entitled to the appointment of a receiver as a matter of right and any
receiver may serve without bond.  The receiver shall comply with all
directives from any court of competent jurisdiction regarding the Protected
Health Information.  The receiver shall have all authority necessary
or desirable to Use the Protected Health Information to administer or enforce on
behalf of Marquette any term in the Loan Documents or any remedy provided by law
or in equity as such court may order to cause Provider to fulfill all of its
obligations under the Loan Documents.

     

    9. Limitation of
Remedies.  In no event shall Marquette be liable for any of
Provider’s incidental or consequential damages, including without limitation
damages for loss of reputation, lost revenue or profits, lost opportunities, or
injury to persons or property, arising from any breach of this
Agreement.

     

    10. Choice of Law, Jurisdiction, Waiver
of Jury Trial, and Attorney Fees.

     

    10.1 Choice of Law.  This
Agreement shall be construed under the laws of the State of Oregon.

     

    10.2 Jurisdiction and Waiver of
Jury. Any litigation, court proceeding, or action arising out of or
related in any way to this Agreement shall be brought in the state or federal
courts of the State of Oregon, and Provider hereby consents to the jurisdiction
of such Oregon courts.  In all cases, the parties waive any right that
they might have to have any claim adjudicated by a jury.

     

    10.3 Attorney Fees. In any
litigation, court proceeding, or action arising out of this Agreement, the
prevailing party shall be entitled to an award of attorney fees and costs,
including without limitation costs of depositions, experts, or any other
reasonably incurred expense of litigation at trial, on appeal, or in
bankruptcy.

     

    
      
         

      

      
        Exhibit
10.6 - Page 6 of 7

        
          

        

      

      
         

      

    

    

     

    11. Miscellaneous.

     

    11.1 Regulatory
References.  A reference in this Agreement to a section in
HIPAA, the Privacy Rule, or the Security Rule means the section as in effect or
as amended at the applicable time.

     

    11.2 Amendment.  The
Parties agree to amend this Agreement from time to time as is necessary for
Provider to comply with the requirements of the Privacy Rule and
HIPAA.  Such amendment shall be in a writing signed by both
parties.

     

    11.3 Construction. Any ambiguity in
this Agreement, or as between this Agreement and the Loan Documents, is to be
resolved so as to permit Provider to comply with the Privacy
Rule.  This Agreement controls in case of a conflict between this
Agreement and the Loan Documents.

     

    11.4 No Third-Party
Beneficiary.  Marquette enters into this Agreement for the sole
purpose of maintaining the relationship embodied in the Loan
Documents.  Provider enters into this Agreement for the sole purpose
of compliance with the Privacy Rule.  Marquette and Provider do not
intend by this Agreement or the Loan Documents to benefit any third party,
including without limitation any Individual who is a subject of Protected Health
Information governed by this Agreement.

     

    

    
      	
              Marquette Business Credit,
      Inc., 

              d/b/a Marquette Healthcare
      Finance:

               

               

               

               

              By: /s/ Jennifer
      Sheasgreen

              Name:
      Jennifer Sheasgreen

              Title:
      Senior Vice President

               

            	
              Zynex,
Inc.:

               

               

               

               

               

              By: /s/ Thomas
      Sandgaard

              Name:
      Thomas Sandgaard

              Title:
      Chief Executive Officer and President

               

              Zynex Medical, Inc., f/d/b/a
      

              Stroke Recovery
      Systems:

               

               

               

              By: /s/ Thomas
      Sandgaard

              Name:
      Thomas Sandgaard

              Title:
      President

            

    

     

    
 

    Exhibit 10.6 - Page 7 of 7Exhibit 10.32

 

THE NEIMAN MARCUS GROUP, INC.

 

SUPPLEMENTAL EXECUTIVE

 

RETIREMENT PLAN

 

As amended through December 31, 2007

 

 

THE NEIMAN MARCUS GROUP, INC.

 

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

 

 

Table of Contents

 

 

	
  ARTICLE

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  	
   

  
	
  Article 

  	
  I.-DEFINITIONS

  	
   

  	
  5

  
	
   

  	
  1.1.
  “Augmentation Plan”

  	
   

  	
  5

  
	
   

  	
  1.2.
  “Basic Plan”

  	
   

  	
  5

  
	
   

  	
  1.3.
  “Board of Directors”

  	
   

  	
  5

  
	
   

  	
  1.4.
  “CHH Plan”

  	
   

  	
  5

  
	
   

  	
  1.5.
  “Code”

  	
   

  	
  5

  
	
   

  	
  1.6.
  “Committee”

  	
   

  	
  5

  
	
   

  	
  1.7.
  “Company”

  	
   

  	
  5

  
	
   

  	
  1.8
  “Compensation

  	
   

  	
  6

  
	
   

  	
  1.9.
  “Effective Date”

  	
   

  	
  6

  
	
   

  	
  1.10.
  “Eligible Employee”

  	
   

  	
  6

  
	
   

  	
  1.11.
  “Individual Pension Agreement”

  	
   

  	
  7

  
	
   

  	
  1.12.
  “Minimum Salary”

  	
   

  	
  7

  
	
   

  	
  1.13.
  “Normal Form”

  	
   

  	
  7

  
	
   

  	
  1.14
  “Participant”

  	
   

  	
  7

  
	
   

  	
  1.15.
  “Participating Employer”

  	
   

  	
  7

  
	
   

  	
  1.16.
  “Plan”

  	
   

  	
  7

  
	
   

  	
  1.17.
  “Plan Year”

  	
   

  	
  7

  
	
   

  	
  1.18.
  “Service”

  	
   

  	
  8

  
	
   

  	
  1.19.
  “Social Security Benefit”

  	
   

  	
  8

  
	
   

  	
  1.20.
  “Spouse”

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  Article 

  	
  2.-PARTICIPATION

  	
   

  	
  10

  
	
   

  	
  2.1.
  Commencement of Participation

  	
   

  	
  10

  
	
   

  	
  2.2.
  Duration of Participation

  	
   

  	
  10

  
	
   

  	
  2.3.
  Reduction in Participants

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  Article 

  	
  3.-SOURCE
  OF BENEFIT PAYMENTS

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  Article 

  	
  4.-RETIREMENTBENEFITS

  	
   

  	
  13

  
	
   

  	
  4.1.
  Normal or Late Retirement Benefit

  	
   

  	
  13

  
	
   

  	
  4.2.
  Early Retirement Benefit

  	
   

  	
  13

  
	
   

  	
  4.3.
  Vested Termination Benefit

  	
   

  	
  15

  
	
   

  	
  4.4.
  Other Teffi1ination of Employment; Death

  	
   

  	
  15

  
	
   

  	
  4.5.
  Optional Forms of Benefits

  	
   

  	
  16

  
	
   

  	
  4.6.
  Forfeiture of Benefits

  	
   

  	
  17

  
	
   

  	
  4.7.
  Surviving Spouse Benefit

  	
   

  	
  17

  
	
   

  	
  4.8.
  Disability

  	
   

  	
  17

  
	
   

  	
  4.9.
  No Reduction in Accrued Benefit Under CHH Plan

  	
   

  	
  18

  

 

2

 

	
   

  	
  4.10.
  Lump Sum Settlements

  	
  18

  
	
   

  	
  4.11.
  Reemployment After Retirement

  	
  18

  
	
   

  	
   

  	
   

  
	
  Article 

  	
  5.-COMMITTEE

  	
  20

  
	
   

  	
  5.1.
  Plan Administration and Interpretation

  	
  20

  
	
   

  	
  5.2.
  Powers, Duties, Procedures, etc.

  	
  20

  
	
   

  	
  5.3.
  Information

  	
  21

  
	
   

  	
  5.4.
  Indemnification of Committee

  	
  21

  
	
   

  	
   

  	
   

  
	
  Article 

  	
  6.
  –AMENDMENTANDTERMINATION

  	
  22

  
	
   

  	
  6.1.
  Amendments

  	
  22

  
	
   

  	
  6.2.
  Termination of Plan

  	
  22

  
	
   

  	
   

  	
   

  
	
  Article 

  	
  7.-MISCELLANEOUS

  	
  23

  
	
   

  	
  7.1.
  Nonassignability

  	
  23

  
	
   

  	
  7.2.
  Limitation on Participants’ Rights

  	
  23

  
	
   

  	
  7.3.
  Participants Bound

  	
  23

  
	
   

  	
  7.4.
  Receipt and Release

  	
  23

  
	
   

  	
  7.5.
  Governing Law

  	
  24

  
	
   

  	
  7.6.
  Headings and Subheadings

  	
  24

  

 

3

 

THE NEIMAN MARCUS GROUP, INC.

 

SUPPLEMENTAL EXECUTIVE

 

RETIREMENT PLAN

 

Purpose

 

The
Company originally adopted this Plan, effective August 7, 1987, for a
select group of management personnel in order to

 

(a) attract,
retain and motivate qualified management personnel;

 

(b) facilitate
the retirement of management personnel; and

 

(c) provide
survivor income for the spouses of management personnel.

 

The
Company hereby amends and restates the Plan to make certain changes and
clarifications. The Plan is intended to be “a plan which is unfunded and is
maintained by an employer primarily for the purpose of providing deferred
compensation for a select group of management or highly compensated employees”
within the meaning of Sections 201(2) and 301(a)(3) of ERISA, and
shall be interpreted and administered to the extent possible in a manner
consistent with that intent.

 

4

 

Article 1. - Definitions

 

Wherever
used herein the following terms have the meanings set forth below, unless a
different meaning is clearly required by the context:

 

1.1.
“Augmentation Plan” means the Augmentation to Pension Plan for Employees of
Carter Hawley Hale Stores, Inc.

 

1.2.
“Basic Plan” means The Neiman Marcus Group, Inc. Retirement Plan as
amended from time to time. Reference to any Article or Section of the
Basic Plan shall include reference to any comparable or successor provisions of
the Basic Plan as amended from time to time.

 

1.3.
“Board of Directors” means the Board of Directors of the Company.

 

1.4.
“CHH Plan” means the Supplemental Executive Retirement Plan of Carter Hawley
Hale Stores, Inc, as in effect on the day before the Effective Date.

 

I.5.  “Code” means the Internal Revenue Code of
1986, as amended from time to time. Reference to any Section or subsection
of the Code includes reference to any comparable or succeeding provisions of
any legislation which amends, supplements or replaces such Section or
subsection.

 

1.6.
“Committee” means the Employee Benefits Committee appointed by the Board of
Directors or its Executive Committee.

 

1.7.
“Company” means The Neiman Marcus Group, Inc., a Delaware corporation and
any successor to all or substantially all of its assets or business which
assumes the obligations of the Company.

 

5

 

1.8.
“Compensation” means, with respect to any given period, the aggregate
compensation, exclusive of any bonuses, paid to an Eligible Employee by one or
more Participating Employers during such period, whether before or after he or
she becomes an Eligible Employee. “Compensation” shall be determined before any
reduction under Section 125 or 40 1 (k) of the Code or under any
other deferred compensation plan or arrangement, but shall not otherwise
include any Participating Employer contributions under retirement or other
benefit plans or arrangements, or any expense reimbursements, imputed
compensation, property, or payments of compensation previously deferred. In the
case of an Eligible Employee who was, immediately prior to the Effective Date,
employed by Carter Hawley Hale Stores, Inc. (“CHH”) or any of its
affiliates, the term “Participating Employer” shall, for purposes of this Section 1.7,
include CHH and its affiliates.

 

1.9.
“Effective Date” means August 2, 1987.

 

1.10.
“Eligible Employee” means each employee of a Participating Employer who, on any
August 1,

 

(a) is employed in an executive, administrative, or professional
capacity as defined in Section 13(a)(I) of the Fair Labor Standards
Act, as amended, and the regulations thereunder,

 

(b) participates in the Basic Plan,

 

(c) had a base salary on the immediately preceding December 31
at least equal to the Minimum Salary, and

 

(d) is not employed as a salesperson.

 

6

 

1.11.
“Individual Pension Agreement” means a deferred compensation agreement between
a Participating Employer and an Eligible Employee which provides for payment by
the Participating Employer of supplementary retirement benefits, but shall not
include any agreement to defer compensation under The Neiman Marcus Group, Inc.
Key Employee Deferred Compensation Plan or any similar plan or arrangement.

 

1.12.
“Minimum Salary” means:

 

(a) for December 31 of each of the years 1992 through 1995,
the amount in effect under Section 414(q)(1)(B) of the Code for the
year following such December 31; and

 

(b) for
December 31, 1996, and each December 31 thereafter, $100,000.

 

1.13.
“Normal Form” means a form of benefit payable monthly to an individual during
his or her lifetime, the first payment to be due on the date of the
commencement of his or her benefits under the Plan, and the last payment to be
due for the calendar month in which his or her death occurs.

 

1.14.
“Participant” means any individual who participates in the Plan in accordance
with Article 2.

 

1.15.
“Participating Employer” means the Company and any affiliate or subsidiary of
the Company which is a Participating Employer as defined in the Basic Plan.

 

1.16.
“Plan” means The Neiman Marcus Group, Inc. Supplemental Executive
Retirement Plan as set forth herein and in all subsequent amendments hereto.

 

1.17.
“Plan Year” means the 52 or 53 week period ending on the Saturday nearest to July 31
of each year.

 

7

 

1.18.
“Service” means the period measured in years equal to years of Vesting Service
determined under the Basic Plan, subject to the following special rules:

 

(a) Years of Vesting Service, if any, prior to
the Effective Date shall be determined in accordance with the rules of the
Pension Plan for Employees of Carter Hawley Hale Stores, Inc. that applied
on August 1, 1987 to employees hired after June 30, 1980; and

 

(b) A Participant shall be credited with a full
year of Service for each partial year of Vesting Service interrupted by a
Period of Severance, provided that (i) the Participant is credited with at
least 1,000 Hours of Service during such partial year of Vesting Service, and (ii) no
more than one year of Service shall be credited during any 12-month period.

 

1.19.
“Social Security Benefit” means, in the case of each Participant, the estimated
amount of the monthly primary old age insurance benefit available to him at age
65 under the Social Security Act as in effect on the earliest of his or her
Normal Retirement Date, Termination of Employment or death. The amount shall be
computed upon the assumption that the Participant has been continuously covered
under said Act since the later of 1951 or his or her 21st birthday, and that
his or her remuneration for employment for the calendar year preceding the date
of his or her Normal Retirement, Termination of Employment or death, whichever
is earliest, was equal to that portion of his compensation for such year that
would be subject to tax under Section 3101(a) of the Code without the
dollar limitation of Code Section 3121(a)(l), and his or her remuneration
for each prior calendar year was equal to the assumed remuneration for the
subsequent year divided by 1.06. If a Participant has a Termination of
Employment 

 

8

 

for
any reason, or becomes Totally and Permanently Disabled, prior to his or her
Normal Retirement Date, in determining his or her Social Security Benefit,
earnings for the calendar year of such termination or disability and each
subsequent calendar year prior to his or her Normal Retirement Date shall be
assumed to be equal to that portion of his or her compensation for the calendar
year prior to the year of termination or disability that would be subject to
tax under Section 3101(a) of the Code without the dollar limitation
of Code Section 3121(a)(1). 1.20. “Spouse” means the lawfully married
husband or wife of a Participant, determined at the time of the Participant’s
death or, if earlier, as of the first day of the first month for which benefits
are payable under the Plan.

 

Unless
defined herein, any capitalized word, phrase or term used in this Plan shall
have the meaning given to it in the Basic Plan.

 

9

 

Article 2. - PARTICIPATION

 

2.1. Commencement of Participation. Any individual who was a Participant in the
Plan on July 31, 1993 will, subject to Sections 2.2 and 2.3, continue to
be a Participant under this restatement of the Plan. Any other individual who
is an Eligible Employee on August 1, 1993 or any subsequent August 1
shall become a Participant on such August.

 

1.
2.2. Duration of Participation. Subject to Section 2.3, an
individual who has become a Participant in the Plan shall continue to be a
Participant as long as he or she remains an employee of a Participating
Employer or is entitled to a benefit under the Plan, even though his or her
base salary after becoming a Participant later falls below the then applicable base
salary level specified in Section 1.10. A Participant will cease to be a
Participant when he or she is neither employed by a Participating Employer nor
entitled to receive a benefit under the Plan.

 

2.3.
Reduction in Participant. 
Notwithstanding any other provision of the Plan to the contrary, the
Committee may terminate the right of any Participant or Eligible Employee to
participate in the Plan if the Committee deems such action to be necessary to
preserve the status of the Plan as “a plan which is unfunded and is maintained
by an employer primarily for the purpose of providing deferred compensation for
a select group of management or highly compensated employees” within the
meaning of Sections 201 (2) and 301(a)(3) of ERISA. In the event a
Participant’s participation is terminated under this Section 2.3, the
Participant shall not be entitled to any benefits under the Plan except to the
extent such benefits would be protected under Section 6.2 if the Plan were
then terminated.

 

10

 

The
Committee may, in its discretion, direct the Participant’s Participating
Employer to pay to the Participant the present value of any such protected
benefits, or to provide for payment of such benefits through another plan, or
may direct a combination of the foregoing, in lieu of providing such benefits
under this Plan, and such payment or provision (or both) shall be in complete
satisfaction of the Participant’s rights under this Plan.

 

11

 

Article 3. - SOURCE OF BENEFIT PAYMENTS

 

Nothing
in this Plan will be construed to create a trust or to obligate the
Participating Employers or any other person to segregate a fund, purchase an
insurance contract, or in any other way currently to fund the future payment of
any benefits hereunder, nor will anything herein be construed to give any
employee or any other person rights to any specific assets of the Participating
Employers or of any other person. Any benefits which become payable hereunder
shall be paid from the general assets of the Participating Employers. .

 

12

 

Article 4. - RETIREMENT BENEFITS

 

4.1.
Normal or Late Retirement
Benefit. The amount of the monthly retirement benefit payable under the
Plan to a Participant who retires on or after
his or her Normal Retirement Date, commencing on the first day of the month
coinciding with or next following his or her
retirement and payable in the Normal Form, will be equal to (a) minus (b),
but not less than zero, where

 

(a) is 50% of the Participant’s average monthly Compensation for
the highest sixty consecutive months preceding retirement, less 60% of the
Participant’s Social Security Benefit, the result multiplied by a fraction the
numerator of which is the Participant’s years of Service (not in excess of 25)
and the denominator of which is 25; and

 

(b) is the monthly normal or late retirement benefit payable to
the Participant under the Basic Plan (increased by his or her monthly benefit, if any, under the
Augmentation Plan and any Individual Pension Agreement), calculated as though
payable in the Normal Form.

 

4.2.
Early Retirement Benefit.

 

(a) The amount of the monthly retirement benefit under this Plan
payable in the Normal Form to a Participant who has attained age 55 with
at least 10 years of Service, and who retires thereafter (but prior to his or
her Normal Retirement Date), shall equal (1) minus (2), but not less than
zero, where

 

(1) is the amount determined under Section 4.1(a) above,
unreduced for early commencement if the benefit starting date is on or after
the Participant’s 62nd birthday, reduced by 1/600th for each month 

 

13

 

between
the Participant’s 60th and 62nd birthday by which the benefit starting date
precedes the month in which the Participant attains age 62, and reduced further
by 1/240th for each month by which the benefit starting date precedes the month
in which the Participant attains age 60; and

 

(2) is the Participant’s monthly early
retirement benefit, if any, under the Basic Plan (increased by his or her
monthly early retirement benefit, if any, under the Augmentation Plan and any
Individual Pension Agreement), calculated as though payable in the Normal Form.

 

If
the Participant is not eligible for an early retirement benefit under the Basic
Plan (or, if applicable, the Augmentation Plan or any Individual Pension
Agreement) at the time a benefit becomes payable under this Plan, the monthly
benefit under this Plan will be determined without reduction for such early
retirement benefit until such time as the Participant could begin to receive a
benefit under the Basic Plan (or Augmentation Plan or Individual Pension
Agreement), and will then be reduced by the amount of each such benefit
calculated as though payable in the Normal Form.

 

(b) The
monthly benefit payable to a Participant under this Section 4.2 shall
commence at the same time as the early retirement benefit payable under the
Basic Plan. However, if no benefit is payable to a Participant under the Basic
Plan before his or her Normal Retirement Date, the benefit payable under this Section 4.2
shall commence on the first day of the month coinciding with or next following
the Participant’s retirement, or such later month (up to the Participant’s
Normal Retirement Date) as the Participant may elect. Such election must be
made at least 90 days before 

 

14

 

benefits
would otherwise commence. In each case the reductions applicable under
paragraph (a)(l) shall reflect the actual date as of which benefits
commence.

 

4.3.
Vested Termination Benefit. Any Participant who has a Termination of
Employment after he or she has completed at least 5 years of Service, but
before he or she has satisfied the requirements for early retirement hereunder,
shall be entitled to a monthly benefit payable in the Normal Form, commencing at the same time as the
Participant’s vested benefit under the Basic Plan, in an amount equal to (a) below
(reduced by the applicable factor set forth in Section 4.2(a)(1) above)
minus (b) below, but not less than zero, where

 

(a) is 50% of the Participant’s average monthly Compensation for
the highest sixty consecutive months preceding the Termination of Employment,
less 60% of the Participant’s Social Security Benefit, the result multiplied by
a fraction the numerator of which is the Participant’s years of Service and the
denominator of which is the greater of 25 years or the number of years of
Service the Participant would have had if he or she continued employment with a
Participating Employer without interruption until his or her Normal Retirement
Date; and

 

(b) is the Participant’s monthly benefit under the Basic Plan
(increased by his or her monthly benefit, if any, under the Augmentation Plan
and any Individual Pension Agreement), calculated as though payable in the
Normal Form.

 

4.4.
Other Termination of Employment; Death. If a Participant has a
Termination of Employment for any reason prior to the time he or she is
eligible for a retirement or 

 

15

 

vested
benefit under Section 4.1, 4.2 or 4.3, no benefit shall be payable under
this Plan. In the event a Participant dies prior to the commencement of benefit
payments hereunder, then except as provided in Section 4.7 no benefits
shall be payable hereunder following the Participant’s death. In the event a
Participant dies after the commencement of benefit payments hereunder, payments
shall continue to be made following his or her death only if the Participant
has chosen an optional form of benefit under Section 4.5 and then only to
the extent, if any, provided under such optional form of benefit.

 

4.5.
Optional Forms of Benefits. A Participant may elect to receive, in lieu
of the retirement benefit otherwise payable to him or her in the Normal Form pursuant
to Section 4.1, 4.2 or 4.3, retirement benefits of Actuarial Equivalent
value payable in any of the optional forms available under the Basic Plan,
provided that no optional form of benefit shall be available to a married
Participant, other than a 50% contingent annuity form protecting the
Participant’s Spouse, without the written consent of such Spouse. The Committee
shall notify each Participant of the options available to him and shall provide
forms for election of such options. The Participant shall be entitled to elect
one of the foregoing options (or to revoke any such election) within the 90-day
period prior to the commencement of benefits. The election of one of the
options provided for in this Section 4.5 shall become effective as of the
first day of the first month for which benefits are payable to the Participant
under the Plan, and may not be rescinded or modified thereafter. Should the
Participant’s Spouse or other beneficiary die prior to such effective date, the
Participant’s election will be void and the Participant’s retirement benefit
will be paid to him as though he or she had made no election unless the 

 

16

 

Participant
makes a new election prior to such effective date.

 

4.6.
Forfeiture of Benefits. Notwithstanding any provision of this Plan to
the contrary, no benefits shall be payable under this Plan with respect to any
Participant who confesses to, or is convicted of, any act of fraud, theft or
dishonesty arising in the course of, or in connection with, his or her
employment with a Participating Employer. The Committee’s decision as to the
applicability of this Section 4.6 in any case shall be fixed and binding
on all persons.

 

4.7.
Surviving Spouse Benefit. In the event a Participant dies on or after
the earliest date as of which he or she becomes eligible for a benefit under Section 4.1,
4.2 or 4.3 but prior to the first day of the first month for which benefits are
payable to him or her under this Plan, and such Participant is survived by a
Spouse, a monthly surviving spouse benefit shall be payable to such Spouse
commencing as of the month the pre-retirement death benefit under the Basic
Plan commences to be paid to the Spouse (the “survivor benefit commencement
date”) and ending with the month in which the Spouse’s death occurs. The
monthly surviving spouse benefit shall be computed as though the Participant
had terminated employment on the date of his or her death (if not already
terminated), had chosen to have benefit payments commence in the 50% contingent
annuity form described in Section 4.5 on the survivor benefit commencement
date, and had survived to and died on the day following such commencement date.

 

4.8.
Disability.  Any Participant who
becomes Totally and Permanently Disabled at a time when he or she has ten or
more years of Service but before Normal Retirement Age shall continue to have
Service credited on his or her behalf until the earlier of his or her Normal
Retirement Date or the date on which he or she is no longer 

 

17

 

Totally
and Permanently Disabled (or, if he or she returns to work at that time for a
Participating Employer, until his or her subsequent retirement or other
termination of employment).

 

4.9.
No Reduction in Accrued Benefit Under CHH Plan. Notwithstanding any
other provision of the Plan, in the case of a Participant who was a participant
in the CHH Plan on the day before the Effective Date, any benefit payable to
the Participant under Section 4.1 ~ 4.2~ or 4.3 in the Normal Form will
not be less than the benefit that would have been payable to the Participant in
the Normal Form, commencing at the same time, under the CHH Plan as in effect
on the day before the Effective Date if the Participant’s employment had
terminated on that date. For purposes of the preceding sentence, a Participant
will be deemed to have satisfied the age and service requirements for
entitlement to benefits under the CHH Plan and from the Pension Plan for
Employees of Carter Hawley Hale Stores, Inc. on the day before the
Effective Date, but the Participant’s actual age and Service will be taken into
account in computing the amount of benefit that would have been payable to the
Participant under the CHH Plan.

 

4.10.
Lump Sum Settlements. Notwithstanding any other provisions of the Plan
to the contrary, if any benefit payable under the Plan is less than $50 per
month, such benefit shall instead be paid in a single lump sum of Actuarial
Equivalent value.

 

4.11.
Reemployment After Retirement. Any benefit payable under the Plan to a
Participant shall cease as of the date of rehire if the Participant is
reemployed by a Participating Employer and shall resume following subsequent
retirement or other Termination of Employment in accordance with the applicable
provisions of this Article 4. The retirement benefit subsequently payable
shall be computed in accordance with 

 

18

 

this
Article 4 on the basis of service and compensation to the time of such
subsequent Termination of Employment, but shall be reduced by the Actuarial
Equivalent of any payments previously made under the Plan, including lump sum
payments or amounts applied to purchase annuity contracts. In no event shall
the aggregate benefits of any rehired Participant be greater than the benefit
he or she would have received if all his or her service had been one continuous
period of employment.

 

19

 

Article 5. -
COMMITTEE

 

5.1. Plan Administration and Interpretation. The Committee shall
have complete control over the administration of the Plan. The Committee shall
have complete control and authority to determine the rights and benefits and
all claims, demands and actions arising out of the provisions of the Plan of
any Participant, beneficiary, deceased Participant, or other person having or
claiming to have any interest under the Plan. All rules and decisions of
the Committee shall be uniformly and consistently applied to all Participants
and other claimants in similar circumstances. When making a determination or
calculation, the Committee shall be entitled to rely on information furnished
by a Participant, a beneficiary, the Participating Employers, the legal counsel
of a Participating Employer or the Committee, or the Actuary. Subject to
applicable laws and regulations, for all purposes of administration and
interpretation of the Plan, the Committee shall consider the Plan as if it were
maintained by a single employer for the benefit of all Participants by whomever
employed. The Committee shall be deemed to be the Plan administrator with
responsibility for complying with any reporting and disclosure requirements of
ERISA.

 

5.2. Powers, Duties, Procedures, etc. The Committee shall have
such powers and duties, may adopt such rules and tables, may act in
accordance with such procedures, may appoint such officers or agents, may
delegate such powers and duties, may receive such reimbursements and compensation,
and shall follow such claims and appeal procedures with respect to the Plan as
are permitted or required under the terms of the Basic Plan.

 

20

 

5.3. Information. To enable the Committee to perform its
functions, the Participating Employers shall supply full and timely information
to the Committee on all matters relating to the compensation of Participants,
their employment, retirement, death, the cause for termination of employment,
and such other pertinent facts as the Committee may require.

 

5.4. Indemnification of Committee. The Company agrees to
indemnify and to defend to the fullest extent permitted by law any officer or
employee of any Participating Employer who serves as a member of the Committee
(including any such individual who formerly served as a member of the
Committee) against all liabilities, damages, costs and expenses (including
attorneys’ fees and amounts paid in settlement of any claims approved by the
Company) occasioned by any act or omission to act in connection with the Plan,
if such act or omission is in good faith.

 

21

 

Article 6. - AMENDMENT AND TERMINA TTON

 

6.1. Amendments. The Company shall have the right to amend this
Plan from time to time by resolution of the Board of Directors or its Executive
Committee and to amend or cancel any amendments. Any such amendment shall be
stated in an instrument in writing, executed by the Company in the same manner
as this Plan.

 

6.2. Termination of Plan. This Plan is strictly a voluntary
undertaking on the part of the Company and shall not be deemed to constitute a
contract between the Company and any Eligible Employee (or any other employee)
or a consideration for, or an inducement or condition of employment for, the
performance of services by any Eligible Employee (or other employee). The
Company reserves the right to terminate this Plan at any time and, in the event
of such termination, to pay no benefits to any Participant who has neither completed
5 years of Service nor attained age 65. No such termination shall result in the
reduction of (a) benefits that have commenced before the date of
termination, (b) benefits accrued as of that date by any Participant who
has completed at least 5 years of Service or attained age 65 by that date, or (c) benefits
accrued under the CHH Plan as of the day before the Effective Date by any
Participant who was a participant in the CHH Plan on that day.

 

22

 

Article 7. - MISCELLANEOUS

 

7.1.
Nonassignability. None of the benefits, payments, proceeds or claims of
any Participant or beneficiary shall be subject to any claim of any creditor
and, in particular, the same shall not be subject to attachment or garnishment
or other legal process by any creditor, nor shall any Participant or
beneficiary have any right to alienate, anticipate, commute, pledge, encumber
or assign any of the benefits or payments or proceeds which he or she may
expect to receive, contingently or otherwise, under this Plan.

 

7.2. Limitation on Participants’ Rights. Participation in this
Plan shall not give any Eligible Employee the right to be retained in the
employ of a Participating Employer or any right or interest in the Plan other
than as herein provided. Each Participating Employer reserves the right to
dismiss any Eligible Employee without any liability for any claim against the
Participating Employer, except to the extent provided herein.

 

7.3. Participants Bound. Any action with respect to this Plan
taken by the Committee, the Company, or any other Participating Employer, or
any action authorized by or taken at the direction of the Committee, the
Company, or any other Participating Employer, shall be conclusive upon all
Participants and beneficiaries entitled to benefits under the Plan.

 

7.4. Receipt and Release. Any payment to any Participant or
beneficiary in accordance with the provisions of this Plan shall, to the extent
thereof, be in full satisfaction of all claims against the Company, any other
Participating Employer, and the Committee, and the Committee may require such
Participant or beneficiary, as a condition precedent to such payment, to
execute a receipt and release to such effect. If

 

23

 

any
Participant or beneficiary is determined by the Committee to be incompetent by
reason of physical or mental disability (including minority) to give a valid
receipt and release, the Committee may cause the payment or payments becoming
due to such person to be made to another person for his or her benefit without
responsibility on the part of the Committee, the Company, or any other
Participating Employer to follow the application of such funds.

 

7.5. Governing Law. This Plan shall be construed, administered,
and governed in all respects under and by the laws of the Commonwealth of
Massachusetts. If any provision shall be held by a court of competent
jurisdiction to be invalid or unenforceable, the remaining provisions hereof
shall continue to be fully effective.

 

7.6. Headings and Subheadings. Headings and subheadings in this
Plan are inserted for convenience only and are not to be considered in the
construction of the provisions hereof.

 

IN WITNESS WHEREOF, the Company has caused this Plan to be executed by
its duly authorized officer, effective as of the first day of August, 1993.

 

 

	
   

  	
   

  	
  THE
  NEIMAN MARCUS GROUP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gerald T. Hughes

  

 

24

 

FIRST AMENDMENT

 

Pursuant to Section 6.1 of The Neiman Marcus Group, Inc.
Supplemental Executive Retirement Plan, as amended and restated effective August 1,
1993, The Neiman Marcus Group, Inc. hereby amends said Plan as follows
effective August 1, 1998:

 

1.  Section 1.12(b) is
amended to read in its entirety as follows:

 

“(b) for December 31, 1996, $100,000; and

 

2.  A new paragraph (c) is
added to the end of Section 1.2, as amended, to read in its entirety as
follows:

 

“(c) for December 31, 1997, and each December 31
thereafter, $160,000.”

 

IN WITNESS WHEREOF, The Neiman Marcus Group, Inc. has caused this
instrument to be executed by its duly authority officer this 31st
day of July, 1998.

 

 

	
   

  	
   

  	
  THE
  NEIMAN MARCUS GROUP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gerald T. Hughes

  

 

25

 

SECOND AMENDMENT

 

Pursuant to Section 6.1 of The Neiman Marcus Group, Inc.
Supplement Executive Retirement Plan, said Plan is hereby amended, effective January 1,
2000 by inserting the following at the end of Section 4.10 thereof:

 

“The
Committee may, in its discretion, pay any other benefit in a single lump sum of
Actuarial Equivalent value with the consent of the individual entitled to such
benefit (and, if such individual is a married Participant, the consent of his
or her Spouse).”

 

IN WITNESS WHEREOF, The Neiman Marcus Group, Inc. has caused this
instrument to be executed in its name and on its behalf by its duly authorized
officer this 30th day of October, 2000.

 

 

	
   

  	
   

  	
  THE
  NEIMAN MARCUS GROUP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gerald T. Hughes

  
	
   

  	
   

  	
  Vice
  President, Human Resources

  

 

26

 

THIRD AMENDMENT

 

Pursuant to the provisions of Section 6.1 thereof, The Neiman
Marcus Group, Inc. Supplemental Executive Retirement Plan (the “Plan”) is
hereby amended in the following respect only:

 

Effective July 29, 2007, Section 1.8 of the Plan is hereby
amended by restatement in its entirety to read as follows:

 

1.8                                 “Compensation”
means, with respect to any given period, the aggregate compensation, exclusive
of any bonuses, paid to an Eligible Employee by one or more Participating
Employers during such period, whether before or after he becomes an “Eligible
Employee.”  “Compensation” shall be
determined before any reduction under Section 125 or 401(k) of the
Code or under any deferred compensation plan or arrangement, but shall not
otherwise include any Participating Employer contributions under retirement or
other benefit plans or arrangements, or any expense reimbursements, imputed
compensation, property, payments of compensation previously deferred, or
incentive payments earned through a wellness or similar program sponsored by a
Participating Employer.  In the case of
an Eligible Employee who was, immediately prior to the Effective Date, employed
by Carter Hawley Hale Stores, Inc. (“CHH”) or any of its affiliates, the
term “Participating Employer” shall, for purposes of this Section 1.7,
include CHH and its affiliates.

 

IN WITNESS WHEREOF, this Amendment is executed this 20th day
of July, 2007.

 

 

	
   

  	
   

  	
  THE
  NEIMAN MARCUS GROUP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Marita O’Dea

  
	
   

  	
   

  	
  Senior
  Vice President Human Resources

  

 

27

 

FOURTH AMENDMENT

 

Pursuant to Section 6.1of The Neiman Marcus Group, Inc.
Supplemental Executive Retirement (the “Plan”) is hereby amended, effective as
of December 31, 2007, in the following respects only:

 

FIRST:  Article I
of the Plan is hereby amended by adding the following new Sections 1.21 and
1.22 to the end thereof:

 

1.21  “Grandfathered
Rule of 65 Employee” means a Rule of 65 Employee who either:  (i) expressly elected to remain eligible
to participate in the Basic Plan in accordance with an election made n 2007, or
(ii) implicitly elected to remain eligible to participate in the Basic
Plan by failing to make a timely election to the contrary and thereby
acquiescing to such an election by default.

 

1.22  “Rule of
65 Employee” means an Eligible Employee as of December 31, 2007 whose age
as of December 31, 2007 when added to the number of his or her years of
Vesting Service under the Basic Plan as of December 31, 2007 was equal to
or in excess of 65.

 

SECOND:  Article 2
of the Plan is hereby amended by adding the following new Section 2.4 to
the end thereof:

 

2.4  Participation
After December 31, 2007.  A
Participant who is a Grandfathered Rule of 65 Employee as of December 31,
2007 shall continue to be a Participant under the Plan thereafter, subject to
and in accordance with the terms of the Plan; provided, however, that if a
Grandfathered Rule of 65 Employee has a Termination of Employment after December 31,
2007, such employee shall not be treated as a Grandfathered Rule of 65
Employee upon any later reemployment by a Participating Employer.  Any provisions of the Plan to the contrary
notwithstanding, no individual shall become an Eligible Employee on or after January 1,
2008 who was not an Eligible Employee on December 31, 2007 and, thus,
there shall be no new Participants in the Plan on and after such date, and a
Participant who is not a Grandfathered Rule of 65 Employee shall remain a
Participant in the Plan after December 31, 2007 as provided in Section 2.2
as long as he or she is entitled to receive a benefit under the Plan, but no
additional benefit shall accrue for any Participant who is not a Grandfathered Rule of
65 Employee under the Plan after December 31, 2007, subject to the
following:

 

28

 

(i)  the amount of benefit payable under the
Plan after December 31, 2007 with respect to a Participant who is an
Eligible Participant as of such date but who is not a Grandfathered Rule of
65 Employee shall be determined as if such Participant had a Termination of
Employment effective as of December 31, 2007, provided, however, that any
such Participant shall not be treated as having a Termination of Employment for
purposes of determining whether he or she has attained Normal Retirement Age
until his or her actual Termination of Employment and benefit payments shall
not commence to any such Participant until payments would otherwise commence to
such Participant under the terms of the Plan; and

 

(ii)  a Participant who is not a Grandfathered Rule of
65 Employee shall continue to be entitled to credit for Service after December 31,
2007 for purposes of determining whether such Participant has attained the
required years of Service to vest in a benefit or to commence receiving a
benefit prior to Normal Retirement Date, but not for purposes of the
calculation of the amount of such benefit.

 

IN WITNESS WHEREOF, this Amendment has been executed this 20th
day of December, 2007 to be effective as provided herein.

 

 

	
   

  	
   

  	
  THE NEIMAN MARCUS GROUP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Marita O’Dea

  
	
   

  	
   

  	
  Senior Vice President and Chief Human

  
	
   

  	
   

  	
  Resource Officer

  

 

29

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