On July 22, 2010, Neiman Marcus, Inc. (the "Company") and its wholly-owned subsidiary, The Neiman Marcus Group, Inc. (collectively with the Company, "the Neiman Marcus Group"), entered into new employment agreements with James E. Skinner, Executive Vice President and Chief Financial Officer, and James J. Gold, President and Chief Executive Officer of Bergdorf Goodman, Inc., the terms of which become effective on October 6, 2010. Each of the employment agreements is for a four-year term with automatic extensions of one year unless either party provides three months' written notice of non-renewal. The agreement with Mr. Skinner provides that he will act as Executive Vice President, Chief Operating Officer and Chief Financial Officer of the Neiman Marcus Group for a beginning annual base salary of $700,000 and participation in an annual incentive program with a target bonus opportunity of 75% of annual base salary and a maximum bonus of 150% of annual base salary. In addition, as part of the agreement, the Company will, effective September 30, 2010 and pursuant to the Company's Management Equity Incentive Plan ("Plan"), grant Mr. Skinner a non-qualified stock option with respect to 2,200 shares of Common Stock of the Company with an exercise price equal to the fair market value of the Common Stock at the time of grant. The stock option will expire no later than the seventh anniversary of the grant date.
The agreement with Mr. Gold provides that he will act as President, Specialty Retail of the Neiman Marcus Group for a beginning annual base salary of $750,000 and participation in an annual incentive program with a target bonus opportunity of 75% of annual base salary and a maximum bonus of 150% of annual base salary. In addition, as part of the agreement, the Company will, effective September 30, 2010 and pursuant to the Plan, grant Mr. Gold a non-qualified stock option with respect to 2,200 shares of Common Stock of the Company with an exercise price equal to the fair market value of the Common Stock on the date of grant. The stock option will expire no later than the seventh anniversary of the grant date.
The employment agreements may be terminated by either party. In certain termination circumstances, Mr. Skinner and Mr. Gold each will receive, subject to their execution of a waiver and release agreement, severance pay consisting of no more than a prorated portion of the target bonus for the year of termination, an amount representing the monthly premium cost of certain continued medical benefits for 18 months, 1.5 times annual base salary, and 1.5 times annual target bonus. The agreements contain an 18 month noncompetition agreement along with related confidentiality, nondisparagement, and intellectual property provisions and conditions receipt of the severance pay just described on compliance with those provisions.
Under the agreements, Mr. Skinner and Mr. Gold will be based at the principal executive offices of the Neiman Marcus Group in Dallas, Texas.
The foregoing description of the agreements between the Company and each of Mr. Skinner and Mr. Gold is qualified in its entirety by reference to each of the employment agreements, filed herewith as Exhibit 10.1 and Exhibit 10.2, respectively, and incorporated herein by reference. |