Neiman Marcus 2008 Annual Report Download - page 642

SCHEDULE 1.1(c)
Program Loyalty Program and Loyalty Cards
Section A: Description of Current Program Loyalty Programs
Neiman Marcus InCircle Rewards Program
The Neiman Marcus InCircle Rewards program has successfully driven the use of the NM Card and has stimulated ongoing retail
sales for over 20 years. The Neiman Marcus InCircle Rewards Program applies automatically to any NM Card (in limited cases,
InCircle Rewards can be awarded to select AMEX cards enrolled in the program by a customer). Under the current InCircle Rewards
Program, each time a customer uses the NM Card, the customer earns one point for each dollar spent. Once a customer accumulates
5,000 points during an annual period, the customer automatically becomes a member of the InCircle Rewards program and receives an
InCircle Rewards card.
With membership come certain special privileges, as determined by NMG. In the past those privileges have included the following,
subject to changes made by NMG from time to time: two publications and a newsletter, complimentary gift packaging on purchases
over $25, Hertz double upgrade/discount, double InCircle Reward points on the customer's birthday and $25 dinner certificate for
Smith & Wollensky restaurant. Also cardholders receive advance notice of sales and special events at Neiman Marcus. NMG will
periodically have double-point days at Neiman Marcus stores when cardholders can earn two points for every dollar spent on the card,
driving more customer traffic into the stores.
Once a customer earns 100,000 InCircle Rewards points within the annual program period, the customer becomes a Platinum
Preference Award member and receives unlimited double InCircle Rewards points on all NM Card purchases for that annual period.
The customer also receives special privileges, as determined by NMG. In the past, these privileges have included the following,
subject to changes made by NMG from time to time: customer selected rewards for redemption, 1,000 InCircle Reward points on the
customer's birthday, complimentary subscriptions, memberships to Latitude global services, MEDJET ASSISTANCE, bottle of
champagne, cruise gift certificate and $100 dinner gift certificate to Smith & Wollensky restaurant. If the customer reaches 1,500,000
InCircle Rewards points, the customer becomes a member of the Chairman's Circle and the special privileges become even more
exceptional.
A member's account must be in good standing and at the current point level for thirty days to be eligible to redeem points for rewards.
Merchandise returns and other financial adjustments are deducted from the InCircle Rewards account points. Corporate and employee
accounts are not eligible to participate in the InCircle Rewards programs.
All point redemptions for InCircle Rewards must be made during the annual program period (which lasts for fourteen months from
January to the following March 1st). After March 1st, 25% of unredeemed InCircle Rewards points (up to a maximum of 5,000 points)
will be carried over into the next annual program period. Points are not earned on sales tax, beauty salons, delivery and processing,
alterations, gift packaging charges or NM Gift Cards®. Points are not