Neiman Marcus 2009 Annual Report Download - page 358

(iv) for each segment referred to in Section 17.2(g)(i) and (ii), a forecast of Post-MP RAM and each
component thereof for the [***] commencing with such report, which forecast shall be derived based on
"business-as-usual" assumptions (all of which shall be disclosed), including an assumption that the
Agreement would remain in effect for the full [***] (except that payments in accordance with Article IX
shall be assumed to cease at the end of month [***] and Net Credit Sales shall be assumed to be [***] in
each month following month six) and would not reflect any behavior by Cardholders reflective of a
termination of this Agreement;
(v) for each segment of RAM Deficient Accounts reflected in any of the foregoing analyses, (A) a
description of any proposed changes in Risk Management Policies and (B) information regarding the
forecasted effects of each such proposed change on key Program performance metrics, including [***];
(vi) for each segment of RAM Deficient Accounts, a calculation of the Risk Change Compensation
Amount and the Risk Change Compensation Percentage in respect of such Account segment; and
(vii) within [***] of receiving all information required to be delivered by the above clauses of this
Section 17.2(g), NMG must provide written notice to Bank of which Account segments referred to in
clause (i) or (ii) above NMG wishes to protect from application of any new Risk Management Policies
(other than required by Applicable Law) pursuant to an election to apply Protection Through MP Reduction
or Test/Control Protection pursuant to Section 4.6(f). For each segment defined in Section 17.2(g)(i)(A),
NMG may request to protect subsegments of such segment using only one of the [***] defined in
Section 17.2(g)(i)(B) and Section 17.2(g)(ii). Schedule 17.2(g) sets forth an illustration of the
segmentation process described in this Section 17.2(g).
All forecasts and calculations required to be prepared pursuant Section 17.2(g) shall be prepared using standard
methodologies utilized by Bank for other similar private label Credit Card programs, shall take into account trends at the time
such proposed change would be implemented and shall be certified as meeting the foregoing requirements of this Section by
the Chief Financial Officer of Bank's Credit Card business.
(h) Following a termination by NMG pursuant to Section 16.2(f)(ii)(B) and prior to the [***] preceding the
expiration of the purchase option with respect to the Program Assets referred to in Section 17.2, NMG can designate up to [***]
Accounts (including Accounts already so designated) as [***] Accounts, without regard to the limitations on such designations that
would otherwise apply pursuant to [***] for the purpose of causing
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