Neiman Marcus 2007 Annual Report Download - page 188

Section 4-2 Time of Distribution.
(a) Affirmative Election.
(1) Subject to Section 7-2, Section 7-3, Section 7-4 and Section 7-5 below, the Committee, in its sole
and absolute discretion, may permit an Eligible Employee to elect to receive the distribution of his or her Defined
Contributions for each Plan Year upon the later of:
(A) his or her Separation From Service, or
(B) his or her Specified Distribution Date.
(2) Notwithstanding anything herein to the contrary, an affirmative election will be disregarded and
given no consideration if such an election is not reflected on a completed and fully executed Enrollment Agreement
that is timely with the Committee by the earlier of:
(A) the date set by the Committee, in its sole and absolute discretion, or
(B) the first day of the Plan Year for which the Defined Contribution relates.
(b) Deemed Election. Subject to Section 7-2, Section 7-3, Section 7-4 and Section 7-5 below, to the extent an
Eligible Employee has not made an affirmative election regarding the distribution of his or her Defined Contributions for a
given Plan Year, pursuant to Section 4-2(a) above, the Eligible Employee shall be deemed to have designated the time of
payment as the later of:
(1) Separation From Service, and
(2) the attainment of age fifty-five (55).
Section 4-3 Form of Distribution. Subject to Section 7-3 below, the distribution of a Participant's Defined Contribution
Account will be made in five (5) annual installments commencing on the time of distribution elected, or deemed to have been elected,
by the Participant under Section 4-2 above.
Section 4-4 Modifications of Distribution Timing. Except as provided in Section 7-6 below, the election as to the time
of payment cannot be subsequently changed.
Section 4-5 Characterization of Payments for 409A Purposes. For purposes of Section 409A of the Code, installment
payments under the Plan shall be treated as a series of separate payments.
Section 4-6 Change in Status. If at any time during the Plan Year an Eligible Employee ceases to qualify as such, then
the following provisions shall apply:
(a) Cessation as an Eligible Employee.
(1) If an Eligible Employee ceases to qualify as an Eligible Employee at any time during the Plan
Year, but remains employed by an Employer, the Company will credit to such Eligible Employee's Defined
Contribution Account, at the same time that Defined Contributions are credited to the other Eligible Employees'
Defined Contribution Accounts, an amount equal to the amount that the Eligible Employee would have received if
the Eligible Employee continued as such for the remainder of the Plan Year, except only the portion of the
Employee's Compensation that was earned during the period he or she qualified as an Eligible Employee will be
counted for this purpose. For