Neiman Marcus 2009 Annual Report Download - page 406

SCHEDULE 4.6(f)
Alternative Risk Change Payment Arrangement
With respect to any segment of RAM Deficient Accounts identified pursuant to Section 17.2(g) comprised of not less than [***]
Accounts, NMG may elect, by written notice to Bank, to cause such segment of Accounts to become subject to an Alternative Risk
Change Payment Arrangement, as described below, [***]. So long as NMG complies with the payment arrangements pursuant to
such Alternative Risk Change Payment Arrangement, as described below, [***].
i. Bank will randomly select the greater of [***] Accounts or [***] of Accounts capped at [***] Accounts from each segment of
[***]; provided, however, that Bank shall only select the number of Accounts in excess of [***] Accounts (subject to the [***]
Account cap) necessary to achieve a [***] confidence level that such Accounts are representative of the segment of [***].
ii. Bank will apply the [***] to the [***], and will record the number of active and total Accounts, Net Credit Sales, Average
Daily Gross Receivables and end of month Gross Receivables and performance [***] with respect to such Test Actioned
Accounts. Bank shall report all of the foregoing information, pursuant to a report in form and substance reasonably
satisfactory to NMG, on a quarterly basis, no later than the 20th day following the end of each Program Quarter.
iii. Bank will also record and report to NMG, on the same time frame as set forth in clause (ii), all of the information referred to
in clause (ii) with respect to the [***] other than the [***].
iv. Bank would also calculate and report to NMG, on the time frame referred to in clause (ii), the Baseline Receivables. [***]