Neiman Marcus 2007 Annual Report Download - page 152

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
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