Neiman Marcus 2008 Annual Report Download - page 583

to pursue any such recoveries. In the event NMG is audited or assessed by a state, and as a result any amount of sales tax previously
recovered is repaid to the state, Bank shall repay such amount to NMG. NMG shall use commercially reasonable efforts to negotiate
such audit or assessment. Bank also shall fully cooperate in any such audit or assessment and shall pay the costs and expenses of
NMG incurred in connection with negotiating any tax audit or assessment or analyzing or pursuing any bad debt claims.
4.10 Participation in Reversals.
(a) Reporting of Reversals. Each Year-End Settlement Statement shall set forth a calculation of the applicable Finance Charge
Reversal Percentage and Late Fee Reversal Percentage for the preceding Fiscal Year and such other calculations as are necessary to
calculate the payment in respect thereof to be made by the Parties pursuant to this Section 4.10. All amounts payable pursuant to this
Section shall be netted against each other so that only a single payment shall be made pursuant to this Section.
(b) Finance Charge Reversals. If the Finance Charge Reversal Percentage with respect to the Private Label Accounts reflected in
the Year-End Settlement Statement with respect to the preceding Fiscal Year is greater than the applicable High Collar, the NMG
Companies shall pay Bank an amount equal to (A) the Finance Charge Reversal Percentage with respect to the Private Label Accounts
minus the applicable High Collar, multiplied by (B) the aggregate amount of all finance charges assessed on the Private Label
Accounts during such preceding Fiscal Year. If the Finance Charge Reversal Percentage with respect to the Private Label Accounts for
such Fiscal Year is less than the applicable Low Collar, Bank shall pay the NMG Companies an amount equal to (A) the applicable
Low Collar minus the Finance Charge Reversal Percentage with respect to the Private Label Accounts, multiplied by (B) the aggregate
amount of all finance charges assessed on the Private Label Accounts during such preceding Fiscal Year.
(c) Late Fee Reversals. If the Late Fee Reversal Percentage with respect to the Private Label Accounts reflected in the Year-End
Settlement Sheet with respect to the preceding Fiscal Year is greater than the applicable High Collar, the NMG Companies shall pay
Bank an amount equal to (A) the Late Fee Reversal Percentage with respect to the Private Label Accounts minus the applicable High
Collar, multiplied by (B) the aggregate amount of all late fees assessed on the Private Label Accounts during such preceding Fiscal
Year. If the Late Fee Reversal Percentage with respect to the Private Label Accounts for such Fiscal Year is less than the applicable
Low Collar, Bank shall pay the NMG Companies an amount equal to (A) the applicable Low Collar minus the Late Fee Reversal
Percentage with respect to the Private Label Accounts, multiplied by (B) the aggregate amount of all late fees assessed on the Private
Label Accounts during such preceding Fiscal Year.
4.11 Interest Free Accounts. Bank shall offer and support interest free Accounts in accordance with this Agreement and, subject
to the limitations set forth in this Section 4.11, the cost of maintaining such interest free Accounts shall be borne by Bank. The Year-
End Settlement Sheet for each Fiscal Year shall set forth, (i) Average Private Label Receivables, (ii) Average Interest Free
Receivables and (iii) the Net Yield for such Fiscal Year calculated on all Billed Cardholder Debt. If the dollar amount of Average
Interest Free Receivables as a
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