Neiman Marcus 2008 Annual Report Download - page 648

SCHEDULE 2.1(b)
Private-Label Credit Card Re-issuance
For the initial Private Label Credit Card re-issuance, preliminary and on-going meetings between Bank and NMG must take place to
discuss the criteria for Cardholders receiving the re-issued Private Label Credit Card mailing. During the initial meetings, timeframes
must be reviewed in order to avoid a significant increase in customer service call volume. At a minimum, the Private Label Credit
Card re-issuance shall (i) take place in separate mailings across a 90-120 day minimum timeframe based on account status and (ii) be
structured such that active cardholders receive the re-issued Credit Cards first followed by in-active Cardholders in equally-staged
mailings. In addition to defining the testing and project plan to be implemented in connection with this re-issuance, other
considerations to be addressed by the Management Committee include a potential account purge of some inactive Accounts, the
development of fraud prevention steps and the coding for Credit Card activation at the POS (or through the IVR/VRU). In accordance
with the design of the Cardholder Documentation associated with the re-issuance pursuant to Section 4.5, Bank will be responsible for
the production, mailing, audit reporting and communication of the appropriate loyalty-level Private Label charge cards and related
materials to all cardholders. In addition to the staged mailing process, Bank must work with NMG to ensure that the Private Label
Credit Cards and related materials meet NMG standards in order to address the customer service impact of the re-issuance. Prior to
any mailing of re-issued Private Label Credit Cards, Bank and NMG must discuss and agree upon the maximum daily mailing
volumes in this staged process.