Neiman Marcus 2008 Annual Report Download - page 744

SCHEDULE 1.01(a)
Services
I. The Services that may be transitioned to Bank are defined as follows:
1. Documentation Services — The Statement Mailing responsibilities include preparing, processing and mailing customer
billing statements with related and appropriate inserts including but not limited to privacy policies and term notifications.
Additional credit correspondence may also be included. There are non-credit functions (i.e. store and marketing
mailings) not included in a transfer of Documentation Services. The ability for Universal Agents to retrieve copies of
customer billing statements through the SystemWare XNET or comparable system must also be done as part of this
transition. The cardholder remittance processing (Payment Processing) functionality related to receiving and processing
all incoming charge payments, except those payments received in the store, may also be transitioned. The Payment
Processing transition must include a daily feed of NM and BG payments separately as a TRAMS input feed into the
NMG PaySys system until the Bank PaySys system is used.
2. Credit Card Production Services — The production and issuance of all new, replacement and reissued credit card
plates related to the following credit card programs (Neiman Marcus, Bergdorf Goodman, NM Gold, NM InCircle, NM
Platinum). In addition to the embossed credit cards, the production services group generates non-embossed gift cards
with the 16-digit gift card number coded in the magnetic stripe. The timeline for the potential transition of gift card
issuance and additional costs incurred, if any, will be mutually agreed upon by Bank and NMG prior to such conversion.
3. Late Stage Collections — Collection accounts greater than or equal to 120 contractual days delinquent including
charged-off (P&L) accounts. Customer contact may include the use of power dialing equipment, generated collection
letters in addition to outbound phone contact with the customer. Post Charge-off (P&L) Collection Services include the
administration, maintenance and placement of accounts to outside attorneys and agencies on a contingency fee basis.
4. Data Processing Services — Credit card data processing involves retail cardholder account data storage and
maintenance, transaction authorizing and posting, fraud and risk management strategies and settlement.