Neiman Marcus 2007 Annual Report Download - page 190

ARTICLE V
INVESTMENT CREDITS AND FUNDING
Section 5-1 Theoretical Rate of Return. A Participant's Defined Contribution Account shall be credited with a
theoretical rate of return, which shall be established, and may be prospectively modified at any time, by the Committee, in its sole and
absolute discretion; provided, however, that the Committee may not reduce the theoretical rate of return below an annual rate equal to
the average prime interest rate published in the Eastern Edition of The Wall Street Journal on the last business day of the preceding
calendar quarter (or, if two or more such rates are published, the average of such rates), unless the Committee otherwise adopts two or
more notional investment alternatives.
Section 5-2 Notional Investment Alternatives. To the extent two or more notional investment alternatives are
established by the Committee, the returns on each Participant's Defined Contribution Account will be based upon the notional
investment alternatives elected by the Participant. Notwithstanding the foregoing, if two or more notional investment alternatives are
established by the Committee and a Participant does not affirmatively elect one or more notional investment alternatives, until the
Participant makes an affirmative election regarding the notional investment alternatives on which the return of his or her Defined
Contribution Account will be based, the Participant will be deemed to have elected the default investment option that the Committee
has designated for this purpose. Additionally, if two or more notional investment alternatives are established by the Committee, unless
otherwise provided under this Plan, Participants may allocate the amounts credited to their Defined Contribution Accounts among the
notional investment alternatives available under the Plan only in whole percentages of not less than one percent. The rate of return,
positive or negative, credited under any notional investment alternative will be based upon the actual investment performance of the
investment fund(s) designated by the Committee from time to time, and shall equal the total return of such investment fund, net of
asset-based charges, including, without limitation, money management fees, fund expenses and mortality and expense risk insurance
contract charges.
Section 5-3 Changes of Notional Investment Alternatives, if Applicable. To the extent established by the Committee, a
Participant may change the notional investment alternatives to which the Participant's Defined Contribution Accounts are deemed to
be allocated on such basis as determined by the Committee in its sole and absolute discretion. Each such change may include:
(a) a reallocation of the amounts credited to the Participant's Defined Contribution Account among the
notional investment alternatives available in whole percentages of not less than one percent, and/or
(b) a change in investment allocation in whole percentages of not less than one percent of amounts to be
credited to the Participant's Defined Contribution Account in the future.
Section 5-4 Unfunded Status. Notwithstanding anything herein to the contrary, the Company shall not be obligated to
invest any Defined Contribution under this Plan, or any other amounts, in such portfolios or in any other investment funds. The Plan
shall be entirely unfunded and no provision shall at any time be made with respect to segregating any assets of the Company or an
Employer for payment of any distributions hereunder; however, the Board may, but shall not be required, to authorize the
establishment of a trust or the purchase of insurance to serve as a funding vehicle for the Company's obligations with respect to the
Plan. In any event, the obligation of the Company hereunder shall constitute a general, unsecured obligation, payable solely from the
general assets of the Company, and no Participant shall have any rights to any specific assets of the Company or any Employer.