Neiman Marcus 2006 Annual Report Download - page 80

Burton M. Tansky
Executive Benefits
and Payments Upon Separation
Retirement
($)(1)(7)(8)
Termination
due to
death
($)(2)(7)(8)
Termination
due to
Disability
($)(3)(7)(8)
Termination
without cause
or
for good
reason
($)(4)(7)(8)
Change in
Control
($)(5)(7)
Termination
without cause
following a
change in
control
($)(6)(7)
Compensation:
Severance $ — $ — $ — $ 4,260,000 $ — $ 4,260,000
Bonus — 1,207,000 1,207,000 3,621,000 — 3,621,000
Stock Options — 15,886,417 15,886,417 9,708,366 15,886,417 15,886,417
Benefits & Perquisites:
Retirement Plans 3,192,000 — — — — —
Outplacement Services — — — 75,000 — 75,000
Cash Incentive Plan Payment — — — — 3,080,911 —
Long-Term Disability — — 240,000 — — —
Health and Welfare Benefits — — — 44,790 — 44,790
Life Insurance Benefits — 1,000,000 — — — —
Total $ 3,192,000 $ 18,093,417 $ 17,333,417 $ 17,709,156 $ 18,967,328 $ 23,887,207
Footnotes:
(1) Represents the SERP enhancement provided in Mr. Tansky's employment agreement.
(2) Represents the estimated present value of amounts payable to Mr. Tansky's beneficiaries upon his death: A lump sum payment
of Mr. Tansky's target bonus; the intrinsic value of all unvested equity incentive awards (calculated as in footnote 1 above); and a
lump sum basic life insurance benefit payment of $1,000,000 payable by the Company's life insurance provider.
(3) Represents the intrinsic value of all unvested equity incentive awards (calculated as in footnote (1) above), and $20,000 per
month payable for 12 months pursuant to the terms and conditions of the Company's long-term disability plan provider.
(4) Represents a lump sum payment of three times base salary, three times target bonus, the intrinsic value of 50% of the unvested
equity incentive awards, which would become vested upon the termination of employment (calculated in the same manner as
described in footnote 1 above), and the maximum allowed for outplacement service. The amount included for health and welfare
benefits represents a continuation of COBRA benefits for a period of three years. Calculations were based on COBRA rates
currently in effect. See "Change of Control Agreements" on page 72 of this section.
(5) Represents the intrinsic value of all unvested equity incentive awards, which will become vested upon the change in control,
calculated by taking the difference between the exercise price and $2,683.68 (as described on page 59 of this section), and a lump
sum amount payable under the Cash Incentive Plan, more fully described on page 74 of this section.
(6) Represents a lump sum payment of three times base salary, three times target bonus, the intrinsic value of all unvested equity
incentive awards, which would become vested upon the termination of employment (calculated in the same manner as described
in footnote (1) above), and the maximum allowed for outplacement service. The amount included for health and welfare benefits
represents a continuation of COBRA benefits for a period of three years. Calculations were based on COBRA rates currently in
effect. See "Change in Control Agreements" on page 72 of this section.
(7) In addition, any earned but unpaid bonus for fiscal year 2007 would also be paid to Mr. Tansky. See footnotes (1) and (3) of the
Summary Compensation Table on page 65 of this section.
(8) In addition, Mr. Tansky may become entitled to receive a portion (ranging from, as of July 28, 2007, 25% to 100%, depending
on the reason for the separation from service) of the Cash Incentive Plan Payment indicated under the column entitled "Change in
Control" if his employment is terminated for any reason other than Cause, and, subsequent to such termination, a change in
control or an initial public offering meeting certain conditions occurs.
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