Neiman Marcus 2008 Annual Report Download - page 775

"Net Write-Off Ratio" means, with respect to any period, (i) Net Write-Offs (as defined below) during such period divided by (ii) Net
Credit Sales during such period.
"Next Gen" means an individual consumer's (including Cardholders) credit score based upon that consumer's overall credit
performance and history as provided by the three major credit bureaus (Equifax-Pinnacle, Experian-Experian/Fair Isaac Advanced
Risk Score and TransUnion-Precision).
"RAM Measurement Period" means the period from (and including) [***]through [***].
"Reference Period" means with respect to any interim annual payment required pursuant to Section 9.1 (a)(vii) or (viiI), the period
from (and including) [***]preceding the due date for the Year-End Settlement Sheet on which such payment will be reflected.
"Risk Adjusted Margin" means, with respect to the RAM Measurement Period (or in the case of any interim payment pursuant to
Section 9.1 (a) (vii), the relevant Reference Period), the percentage equivalent of a fraction equal to (A) (i) Gross Financing Income
for such period, minus (ii) Net Write-Offs for such period, minus(iii) Funding Costs for such period, plus (iv) the total of all amounts
paid by NMG pursuant to Section 9.1(a)(viii) at any time during such period divided by (B) the Average Gross Receivables for such
period."
"Rolling 12 Net Write-Off Ratio" means, with respect to any calendar month, the Net Write-Off Ratio for the period of 12
consecutive calendar months ending on and including the month immediately preceding such calendar month.
"Shared Write-Off Amount" means, with respect to the RAM Measurement Period (or in the case of any interim payment pursuant to
Section 9.1 (a)(viii), the relevant Reference Period), the amount by which Net Write-Offs for such period exceed [***]of Net Credit
Sales up to and including [***]of Net Credit Sales for such period (it being understood for the avoidance of doubt that if the Net
Write-Off Ratio for such period is less than or equal to [***], then the Shared Write-Off Amount shall be zero, and that the Shared
Write-Off Amount cannot exceed an amount equal to [***] of Net Credit Sales).
"Variable Break-Even Margin" means (i) Gross Financing Income (defined below) plus (ii) the amounts paid by NMG pursuant to
Section 9.1 (a) (viii) minus (iii) Funding Costs (defined below) minus (iv) Net Write-Offs (defined below) minus (v) the Total of All
Amounts Bank Paid to NMG (defined below) minus (vi) Marketing Expenses (defined below) minus (vii) Fraud Loss (defined below)
minus (viii) Standard Variable Operating Expenses (defined below). As used to determine Variable Break-Even Margin, the
following terms shall have the following meanings:
(1) "Gross Financing Income" means, with respect to any period, an amount equal to the sum of assessed or accrued
finance charges, late fees, NSF fees and any other interest or fees payable under the Program and any amounts paid by NMG
to Bank pursuant to Section 4.10 or 4.11 during such period less the sum of finance charge waivers, fee waivers, the amount
required under GAAP to be amortized by Bank as deferral amortization pursuant to Financial Accounting Standard No. 91
during such period and any amounts paid by Bank to NMG pursuant to Section 4.10 or 4,11 during such period. Fees from
Approved Ancillary Products are not included as part of Gross Financing Income.
(ii) "Funding Costs" means for each calendar month during any period, the product of (A) business daily average of
one month LIBOR as published by Bloomberg Financial Markets plus [***], times (B) the average of [***]of the Gross
Receivables for each day during such calendar month.
(iii) "Net Write-Offs" means, with respect to Accounts that have been written off in a particular period in accordance
with the credit and collection policies contained in. the' Risk Management Policies, (a) the portion of the total Gross
Receivables charged-off as uncollectible to the written-off Accounts in accordance with such credit and collection policies
(and not as a result of fraud losses) during such period minus (b) any recoveries, including sales tax recoveries, received
during such period on previously written-