Neiman Marcus 2003 Annual Report Download - page 242

(b) Liens incidental to the conduct of its business or the ownership of its properties and assets which were not incurred
in connection with the borrowing of money or the obtaining of advances or credit or the incurrence of Derivatives Obligations and
which do not materially detract from the value of its property or assets or materially impair the use thereof in the operation of its
business;
(c) any Lien on any asset securing Debt incurred or assumed for the purpose of financing all or any part of the cost of
acquiring or constructing such asset; provided that such Lien attaches to such asset concurrently with or within 180 days after the
acquisition or completion of construction thereof;
(d) Liens incurred in connection with Guarantees of bonds, notes or other similar obligations of a state, city, town or
other governmental agency or entity which obligations are issued in order to finance property used or to be used by the Borrower or
any Subsidiary, and Liens incurred in connection with the acquisition of, or improvements to, real estate; provided, however, that no
such Lien shall extend to or cover any property other than the property so acquired or improved;
(e) any Lien existing on any assets of any corporation or other entity at the time it becomes a Subsidiary and not
created in contemplation of such corporation becoming a Subsidiary, or existing on any assets acquired by the Borrower or any
Subsidiary through purchase, merger, consolidation, or otherwise and not created in contemplation of such purchase, merger,
consolidation or other transaction;
(f) any Lien resulting from any order of attachment, distraint or other legal process arising out of judicial proceedings
so long as the execution or other enforcement thereof is effectively stayed;
(g) Liens on shares of capital stock or property of a Subsidiary securing obligations owing by such Subsidiary to the
Borrower or to another Subsidiary;
(h) Liens arising out of the refinancing, extension, renewal or refunding of any Debt secured by any Lien permitted by
this Section 5.10; provided that such Debt is not increased and is not secured by any additional assets;
(i) Liens to banks or other institutions arising in connection with the issuance of letters of credit or bankers
acceptances in connection with the shipment or storage of goods in the ordinary course of business;
(j) Liens on cash and cash equivalents securing Derivatives Obligations; provided that the aggregate amount of cash
and cash equivalents subject to such Liens may at no time exceed $50,000,000; and
(k) Liens not otherwise permitted by any of the foregoing clauses of this Section 5.10 (i) covering assets other than
inventory of the Borrower or a Restricted Subsidiary and (ii) securing Debt in an aggregate principal amount at any time outstanding
not to exceed 20% of Consolidated Net Assets.
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