Neiman Marcus 2007 Annual Report Download - page 182

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(1) wages, within the meaning of Section 3401(a) of the Code, and all other payments of remuneration
to a Participant by an Employer for which the Employer is required to furnish the Participant a written statement
under Sections 6041(d), 6051(a)(3) and 6052 of the Code, but determined without regard to any rules that limit the
remuneration included in wages based on the nature or location of the employment or the services performed (such
as the exception for agricultural labor in Section 3401(a)(2) of the Code),
(2) any contributions made by an Employer on behalf of the Participant to a qualified cash or deferred
arrangement (as defined in Section 401(k) of the Code) maintained by the Employer,
(3) any compensation reduction amounts elected by such Participant for the purchase of benefits
pursuant to a cafeteria plan (within the meaning of Section 125(d) of the Code) maintained the Employer, and
(4) any elective amounts not includable in a Participant's gross income by reason of Section 132(f)(4)
of the Code.
(b) Notwithstanding the compensatory items enumerated in Section 2-18(a) above, the term "Eligible
Compensation" excludes:
(1) moving or other expense reimbursements,
(2) imputed compensation,
(3) property,
(4) tips,
(5) allowances,
(6) fringe benefits (both cash and noncash),
(7) severance payments,
(8) service awards and prizes other those paid in cash through an Employer's payroll system,
(9) contributions to a nonqualified plan of deferred compensation made by the an Employer to the
extent that the contributions are not includible in the gross income of the Participant for the taxable year in which
contributed,
(10) distributions from any other plan of deferred compensation, regardless of whether such amounts
are includible in the gross income of the Participant when distributed,
(11) amounts received in connection with or otherwise attributable to awards or grants under any stock
option plan, restricted stock plan, restricted stock unit plan, performance share plan, or similar plan,
(12) other amounts which receive special tax benefits, including premiums for group-term life
insurance,
(13) incentive payments earned through a wellness or similar program sponsored by an Employer, and
(14) any other extraordinary remuneration.