Neiman Marcus 2006 Annual Report Download - page 83

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Footnotes:
(1) Represents a lump sum basic life insurance benefit payment of $1,000,000 payable by the Company's life insurance provider to
the beneficiaries of Messrs. Skinner, Hoffman, and Gold.
(2) Represents long-term disability payments of $20,000 per month for twelve months payable from the Company's long-term
disability insurance provider.
(3) Represents a lump sum payment of two times base salary, two times target bonus, a lump sum retirement benefit, and the
maximum amount for outplacement service payable under the change in control agreements for each of Messrs. Skinner,
Hoffman, and Gold. The amount included for health and welfare benefits represents a continuation of COBRA benefits for a
period of two years. Calculations were based on COBRA rates currently in effect. See "Change of Control Agreements" on page
72 of this section.
(4) Represents a lump sum payment of $962,683 payable to each of Messrs. Skinner, Hoffman, and Gold under the Cash Incentive
Plan, more fully described on page 74 of this section.
(5) Represents a lump sum payment of two times base salary, two times target bonus, the intrinsic value of all unvested equity
incentive awards calculated by taking the difference between the exercise price and the valuation price of $2,683.68 (as described
on page 59 of this section), 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 two years. Calculations were based on COBRA rates
currently in effect. See "Change of Control Agreements"on page 72 of this section.
(6) In addition, any earned but unpaid bonus relating to fiscal year 2007 would also be paid to Messrs. Skinner, Hoffman and Gold.
See footnotes (1) and (3) of the Summary Compensation Table on page 65 of this section.
DIRECTOR COMPENSATION
None of our directors receive compensation for their service as a member of our board. They are reimbursed for any
expenses incurred as a result of their service. As an employee director, Mr. Tansky receives no compensation for his service as a
board member. We offer to each of our directors a discount at our stores at the same rate that is available to our employees.
In connection with the Transactions, affiliates of the Sponsors receive an annual management fee equal to the lesser of (i)
0.25% of consolidated annual revenue, and (ii) $10 million for consulting and management advisory services they provide to us. See
discussion on "Management Services Agreement" on page 83 of this section.
Compensation Committee Interlocks and Insider Participation
In fiscal year 2007, Jonathan Coslet, Kewsong Lee, and John G. Danhakl served as members of our Compensation
Committee. No officer or employee served on the compensation committee (or equivalent), or the board of directors, of another entity
whose executive officer(s) served on our compensation committee or board.
78