Neiman Marcus 2009 Annual Report Download - page 383

SCHEDULE 1.1(f)
Program Loyalty Program and Loyalty Cards
Section A: Description of Current Program Loyalty Program
The InCircle Program
The InCircle program has successfully driven the use of the NM and BG Card and has stimulated ongoing retail sales for over 25
years. The InCircle Program applies automatically to any NM or BG Card (in limited cases, InCircle can be awarded to select AMEX
cards enrolled in the program by a customer). Under the current InCircle Program, a customer is an InCircle member as soon as they
open a new credit card account. Each time a customer uses the NM or BG Card, the customer earns two points for each dollar spent.
Once a customer accumulates 10,000 points during an annual period, the customer becomes eligible to redeem for an InCircle Gift
card.
With membership come certain special benefits, as determined by NMG. In the past those benefits have included the following,
subject to changes made by NMG from time to time, and upon $2500 spend: a Perk Card (good for store services such as dining,
alterations, parking and more), two publications, complimentary gift packaging on purchases over $25, double InCircle points on the
customer's Day of Choosing. Also, all active cardholders receive advance notice of sales and special events. NMG will periodically
have bonus-point days in stores and/or online when cardholders can earn double or triple points for every dollar spent on the card,
driving more customer traffic.
A member's account must be in good standing and at the current point level for thirty days to be eligible to redeem points.
Merchandise returns and other financial adjustments are deducted from the InCircle account points. Corporate and employee accounts
are not eligible to participate in the InCircle program.
All point redemptions for InCircle must be made during the annual program period (which lasts for thirteen months from January 1st,
to the following January 31st). After January 31st, 25% of unredeemed InCircle points (up to a maximum of 5,000 points) will be
carried over into the next annual program period. Points are not earned on sales tax, beauty salons, delivery and processing, alterations
or gift packaging charges. Points are not convertible to cash or payment on Neiman Marcus or Bergdorf Goodman credit accounts.
Customers are responsible for all federal, state, and local taxes; for delivery, processing, and handling fees; and for insurance.
NMG also offers special privileges determined by NMG from time to time (such as personal shopper services, invitations to exclusive
events, free consultations and private shopping hours) as well as InCircle points to AMEX Centurion ("Black") and Platinum
cardholders.
The InCircle program also permits point owners to convert points from InCircle points to points for other programs, including United
Airlines, American Airlines and Delta Airlines (point for point), and gifts/travel at Circle level four and above.