Neiman Marcus 2003 Annual Report Download - page 187

ARTICLE 4
Elective Deferrals
4.1. Elective deferrals. An individual who is a Non-Employee Director on January 17, 1997 may elect, by filing a
written election with the Committee prior to February 14, 1997, to defer all or a specified portion of his or her Compensation for
services to be performed on or after such deferral election. An individual who is a Non-Employee Director on the first day of any
fiscal year of the Company after the Effective Date may elect to defer all or a specified portion of his or her Compensation for services
to be performed on or after such date by filing a written election with the Committee before such date. An individual who has been
nominated or elected to serve as a Non-Employee Director, and who was not a Non-Employee Director immediately prior to such
nomination or election, may elect before or within thirty (30) days after becoming a Non-Employee Director to defer all or a specified
portion of his or her Compensation for services to be performed after such deferral election.
Each deferral election under this Section 4.1 shall be made on a form approved or prescribed by the Committee and
shall also specify the time and form of distribution of the amounts deferred and the investment equivalent alternative described in
Section 4.3 to be applied to such amounts.
An election to defer Compensation and to specify the time and form of distribution may be revoked or modified,
effective for amounts earned on and after the first day of any fiscal year of the Company, by an election filed before that date, but may
not otherwise be revoked or modified except as provided in Section 8.8 in the event of an Unforeseen Emergency.
4.2. Accounts. The Committee shall maintain a bookkeeping account (the "Account") for each Participant reflecting
elective deferrals made for the Participant's benefit under Section 4.1, and the value of such elective deferrals determined in
accordance with Section 4.3, together with any adjustments hereunder. Elective deferrals shall be credited to the Account as of the
day such amounts become payable to the Participant. As of each February 15th, the Committee shall provide the Participant with a
statement of his or her Account as of the end of the preceding Plan Year.
4.3. Investment equivalent alternatives. When a Participant elects to make elective deferrals in accordance with
Section 4.1, he or she shall also elect whether the value of such elective deferrals shall be determined under the cash-based option or
the stock-based option described below.
(a) Cash-based option:
Under the cash-based option, elective deferrals shall accrue interest, to be compounded at the end of each fiscal
quarter of the Company, at a rate equal to the average of the top rates paid by major New York banks on primary
new issues of three-month negotiable certificates of deposit (usually on amounts of $1,000,000 or more) as quoted in
the Wall Street Journal on the last business day of the fiscal quarter.
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