Neiman Marcus 2003 Annual Report Download - page 241

Section 5.04. Maintenance of Property and Leases. The Borrower will, and will cause each Subsidiary to, keep its
properties, whether owned or leased, in satisfactory repair, working order and condition, except where the failure to keep such
properties in such condition could not reasonably be expected to have, individually or in the aggregate, a material adverse change in
the business, assets, financial position or results of operations of the Borrower and its Consolidated Subsidiaries, considered as a
whole.
Section 5.05. Insurance. The Borrower will, and will cause each Subsidiary to, maintain with financially sound and
reputable insurers insurance against liability to persons and damage to property to the extent and in the manner customary for
companies of like size in similar businesses, it being understood that the Borrower may self-insure against exposures which, in the
judgment of its management, are reasonable in relation to its financial position. The Borrower will deliver to the Lenders from time
to time upon request of any Lender through the Administrative Agent full information as to the insurance so carried.
Section 5.06. Accounts and Reports. The Borrower will, and will cause each Subsidiary to, keep true records and books
of account in which full, true and correct entries will be made of all dealings or transactions in relation to its businesses and affairs, in
accordance with United States generally accepted accounting principles consistently applied.
Section 5.07. Inspection. Each Lender or its designee shall have the right, at its expense, on reasonable notice (given to
a senior financial officer of the Borrower) and at reasonable times to visit and inspect the properties of the Borrower and its
Subsidiaries and to discuss the financial affairs of the Borrower and its Subsidiaries with the Borrower's senior officers and will be
furnished from the books of the Borrower and its Subsidiaries such financial information as it may reasonably request and upon such
reasonable conditions relating to confidentiality of the material and information so supplied as the Borrower might impose. Each
Lender shall respect the confidential nature of the material and information so supplied and shall take reasonable measures to preserve
such confidentiality. It is understood that a Lender may be required to disclose such confidential material and information or portions
thereof (1) at the request of a bank regulatory agency or in connection with an examination of the Lender by bank examiners, (2)
pursuant to subpoena or other court process, (3) at the express direction of any other authorized government agency, (4) to its
independent auditors or (5) otherwise as required by law.
Section 5.08. Coverage of Consolidated Fixed Charges. The Fixed Charge Coverage Ratio will not at the end of any
fiscal quarter be less than 2.75 to 1.
Section 5.09. Leverage Ratio. The Leverage Ratio will at no time exceed 60%.
Section 5.10. Restrictions on Liens. The Borrower will not, nor will it permit any Subsidiary to, create, incur, assume
or suffer to exist any Lien upon any of its property or assets now owned or hereafter acquired, except:
(a) Liens existing on the date hereof securing Debt outstanding on the date hereof;
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