Neiman Marcus 2009 Annual Report Download - page 410

SCHEDULE 4.6(m)
Account Management Expansion
1. Types of Action:
Account management expansion initiatives will be implemented across at least [***]:
i. Proactive Batch Credit Line Increases (CLI): Utilizing this strategy, guidelines would be systemically increased through a
batch process on Accounts meeting specific credit criteria with no customer interaction required. Typically, the Accounts
systemically increased would be active Accounts nearing their existing guideline that meet minimum risk score and account
qualifications.
ii. Posting CLI**: As part of the posting CLI process, a Cardholder who has an approved overlimit transaction would receive a
systemic guideline increase such that the new guideline amount would be enough to accommodate the aforementioned
approved overlimit transaction (i.e., the new guideline would exceed the outstanding balance on the account including the
approved overlimit transaction).
iii. Expansion of Existing Overlimit Authorizations Strategy [***]**: This strategy contains the criteria for determining (i)
whether an account is eligible for overlimit transactions, and (ii) the overlimit amount for which such account is eligible.
Expanding the existing overlimit authorizations strategy could entail, for example, removing or reducing the hard decline risk
score threshold (e.g., from [***] risk score for customer exceeding guideline, which would otherwise result in a hard decline
at POS) or raising the overlimit percentage that auto-approves transactions in excess (e.g., from [***] to [***]) of a
cardholder's guideline.
iv. Relaxation of Existing Risk-Based Active Credit Line Decrease (CLD) Strategy: [***]. Relaxing an existing Risk-Based
Active CLD Strategy might entail, for example, reducing the number of Accounts affected by raising risk score thresholds in
the existing strategy, decreasing guidelines less drastically (i.e., CLD to balance plus a certain buffer amount (e.g., [***])
instead of CLD to balance) [***].
v. Relaxation of Existing Risk Based Inactive CLD Strategy: Similar to the risk-based active credit limit decrease strategy,
[***]. Relaxing this strategy may include, for example, reducing the number of Accounts affected by raising risk score
thresholds in the existing strategy, decreasing guidelines less drastically (i.e., CLD to an amount higher than [***]), [***].
**[***]
2. Four illustrative examples of Bank's obligations under Section 4.6(m):