Neiman Marcus 2009 Annual Report Download - page 489

It is the Company's policy to formalize all agreements in writing. Exceptions may be made under certain circumstances, but only with
prior approval from the Legal Department. Every new agreement must be pre-approved by the Legal Department unless an identical
form agreement has been previously authorized. Pre-approval is not required on commonly printed forms related to commercial
travel, car rental, shipment of goods, magazine subscriptions, or any other purely routine matters that common sense dictates may be
transacted without prior legal review.
ENTERING AGREEMENTS
Only certain associates are authorized to sign contracts. Before making commitments on behalf of the Company, an associate must
ensure that he/she has the required signing authority. Entering into unauthorized side letters or oral agreements is prohibited and may
be grounds for disciplinary action. In most cases, the Company, and not the other contracting party, should take the initiative in
preparing agreements. The Legal Department should be conferred with at the earliest opportunity, so that it may anticipate legal
problems and work proactively with management personnel rather than having to react later under unnecessary time constraints. If
there are any questions, please contact the Legal Department.
TERMINATING AGREEMENTS
Periodically, the Company may wish to terminate an agreement before it is due to expire. Because certain liabilities may arise that are
not readily apparent, termination of any agreement requires a critical review of possible ramifications. Therefore, no agreements
should be terminated without the approval of an attorney within the Legal Department.
PRODUCT SAFETY
The Company is committed to complying with all applicable product safety laws and regulations. Although vendors and
manufacturers are ultimately responsible for ensuring the safety and usability of their products, the Company must take reasonable
steps to ensure that their products satisfy applicable legal requirements. Such steps protect the Company's reputation and customer
relationships, and limit the risk of potential legal liability. While not an exhaustive list, the following provides a brief overview of
some requirements.
FLAMMABILITY STANDARDS
Textiles used to manufacture clothing sold in the United States must meet required flammability standards. Associates involved in
buying apparel are responsible for obtaining from vendors copies of test results indicating that the fabrics used in clothing sold to the
Company meet applicable flammability standards. Note that stricter standards apply for fabrics used in children's sleepwear. Vendors
should provide copies of applicable continuing guarantees of compliance filed by them with the Consumer Products Safety
Commission. If an associate becomes aware of any product sold by the Company that does not comply with flammability standards or
contains a defect which may pose a safety hazard to consumers, the associate must notify the Legal Department immediately.
CHILDREN'S TOYS
Toys and other children's items that present potential choking or ingestion hazards must be properly labeled to identify that they are
not intended for use by children under three
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