Neiman Marcus 2003 Annual Report Download - page 189

4.5. Form of payment. When a Participant elects to make elective deferrals in accordance with Section 4.1, the
Participant shall also elect whether the value of such elective deferrals shall be paid in (a) a lump sum, or (b) a specified number of
annual installments (not to exceed 10). Each installment (other than the first) shall accrue interest from the date of the first installment
to the date on which such installment is paid, compounded quarterly at a rate equal to the average of the top rates paid by major New
York banks on primary new issues of three-month negotiable certificates of deposit (usually on amounts of $1,000,000 or more) as
quoted in the Wall Street Journal on the last business day of the fiscal quarter. The foregoing election shall be made on a form
approved or prescribed by the Committee.
4.6. Death prior to payment. In the event that a Participant dies prior to complete distribution of his or her Account, the
balance of his or her Account shall be paid in a single lump sum to the beneficiary or beneficiaries designated by the Participant. If no
such beneficiary has been designated or if no designated beneficiary survives the Participant, the balance of such Account shall be
paid to the Participant's estate. Payment of such amount shall be made within sixty (60) days from the date of receipt by the office of
the Secretary of the Company of notice of the Participant's death. Such designation or designations of beneficiary must be in writing,
dated and signed by the Participant, and no such designation shall require Company consent. No beneficiary designation shall be
deemed effective unless the same is on file in the office of the Secretary of the Company prior to the death of the Participant. The
Company may rely in all cases on the genuineness, accuracy and date of any such beneficiary designation and shall be fully protected
in making payment in accordance therewith. Any beneficiary designation filed in the office of the Secretary of the Company prior to
the death of the Participant shall be deemed to have revoked all earlier designations, and no beneficiary designation filed after the date
of a Participant's death shall be deemed effective.
ARTICLE 5
Non-Elective Deferrals
5.1 Crediting of Common Stock equivalent units. It is contemplated that Board compensation after the Effective Date
may, in the Board's sole discretion, include credits to the Accounts of Participants consisting of Common Stock equivalent units, and
that the value thereof shall be determined under the stock-based option described in Section 4.3(b). For this purpose, for each
Participant who has not elected to defer Compensation pursuant to Section 4.1, an Account shall be established. Any amounts so
credited shall remain in each Participant's Account until termination of his or her service as a member of the Board, and payment from
such Account will be made or will commence at the end of the fiscal quarter in which the Participant's service as a member of the
Board terminates.
5.2 Method of payment. At the Participant's election, made prior to October 1, 1998, on a form approved or prescribed
by the Committee, the value of any amount so credited shall be paid in a lump sum or in annual installments (not to exceed 10), and if
the latter, installments (other than the first) shall accrue interest as described in Section 4.5. In the event that a Participant dies prior to
complete distribution of any amounts credited to his or her Account pursuant to Section 5.1, the balance of such amounts shall be paid
in the manner prescribed and to the persons specified in Section 4.6.
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