Neiman Marcus 2008 Annual Report Download - page 226

(iv) SERP Enhancement. At the time of the Executive's termination of employment with NMG and all
of its Affiliates, the Executive's years of service for purposes of calculating his benefit under The Neiman Marcus
Group, Inc. Supplemental Executive Retirement Plan (the "SERP") shall be determined by multiplying his actual
service for purposes of the SERP by 2, subject to the 25-year maximum set forth in the SERP, and by then providing
the Executive with an additional credit for each year of service by the Executive to NMG following his attainment of
age sixty-five (65) (disregarding the 25-year maximum set forth in the SERP). Following the Effective Date, NMG
shall take any necessary steps to amend the SERP or create a supplemental SERP for the Executive in order to
effectuate the crediting provisions set forth in this Paragraph 5. During the Employment Term, the SERP shall not
be terminated or amended in any way that adversely affects the Executive.
(d) Employee Benefits and Perquisites. During the Employment Term, the Executive will be entitled to
(i) participate in all employee benefit plans, programs, and arrangements that are generally made available by NMG to its senior
executives, including without limitation NMG's life insurance, long-term disability, and health plans and (ii) the perquisites and other
fringe benefits that are made available by NMG to its senior executives generally and to such perquisites and fringe benefits that are
made available by NMG to the Executive in particular, subject to any applicable terms and conditions of any specific perquisite or
other fringe benefit. NMG agrees that the employee benefit plans, programs and arrangements and perquisites and other fringe
benefits that are made available to the Executive during the Employment Term will not be materially diminished in the aggregate from
those benefit plans, programs and arrangements and perquisites and fringe benefits made available immediately prior to the Effective
Date (subject to any diminution during the Subsequent Term that results from the diminution in the Executive's Base Salary from the
CEO Term to the Subsequent Term). The Executive agrees to cooperate and participate in any medical or physical examinations as
may be required by any insurance company in connection with the applications for such life and/or disability insurance policies.
(e) Support during Subsequent Term. During the Subsequent Term, NMG will provide the Executive with a
full-time administrative assistant and an executive office space and furnishings appropriate to his position and status.
(f) Expenses. The Executive shall be entitled to receive reimbursement for all reasonable expenses incurred by
the Executive in performing his duties and responsibilities under this Agreement, consistent with NMG's policies or practices for
reimbursement of expenses incurred by other NMG senior executives.
(g) Vacations. The Executive shall be eligible for vacation, sick pay, and other paid and unpaid time off in
accordance with the policies and practices of NMG. The Executive agrees to use his vacation and other paid time off at such times
that are (i) consistent with the proper performance of his duties and responsibilities and (ii) mutually convenient for NMG and the
Executive.
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