Neiman Marcus 2003 Annual Report Download - page 191

ARTICLE 7
Amendment and Termination
7.1. Amendments. The Board shall have the right to amend the Plan from time to time, subject to Section 7.3, by an
instrument in writing approved by the Board and executed on the Company's behalf by a duly authorized officer.
7.2. Termination of Plan. The Plan is strictly a voluntary undertaking on the part of the Company and shall not be
deemed to constitute a contract between the Company and any Participant or a consideration for, or an inducement or condition of, the
performance of services by any Participant as a member of the Board. The Board reserves the right to terminate the Plan at any time,
subject to Section 7.3, by an instrument in writing approved by the Board and executed on the Company's behalf by a duly authorized
officer. Upon termination of the Plan, no further benefits shall accrue on behalf of any individual then a Participant, nor shall any
individual not a Participant as of the date of termination be eligible to become a Participant thereafter.
7.3. Existing rights. No amendment or termination of the Plan shall reduce:
(a) any benefits payable to (or in respect of) a Participant who has ceased to be a member of the Board, or
(b) any benefits to which a current Board member would have been entitled, currently or in the future, in the
event his or her service as a Board member had terminated on the date of such amendment or termination.
ARTICLE 8
Miscellaneous
8.1. No funding. Nothing in the Plan will be construed to create a trust or to obligate the Company or any other person
to segregate a fund, purchase an insurance contract, or in any other way currently to fund the future payment of any benefits
hereunder, nor will anything herein be construed to give any Participant or any other person rights to any specific assets of the
Company or of any other person. The Plan constitutes a mere promise by the Company to make benefit payments in the future, and is
intended to be unfunded for tax purposes. Any benefits which become payable hereunder shall be paid from the general assets of the
Company, and the rights of any Participant or of his or her estate or beneficiary shall be those of an unsecured general creditor.
8.2. Grantor trust. The Company in its sole discretion may establish a trust (a "grantor trust") of which it is treated as
the owner under Subpart E of Subchapter J, Chapter 1 of the Code to provide for the payment of benefits hereunder, subject to the
claims of the Company's general creditors in the event of insolvency, and subject to such other terms and conditions as the Company
may deem necessary or advisable to ensure that benefits are not includable, by reason of the trust, in the income of trust beneficiaries
prior to their actual distribution.
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