Neiman Marcus 2008 Annual Report Download - page 303

Borrower and its Restricted Subsidiaries during such period; provided that the term "Capital Expenditures" shall not include:
(i) expenditures made in connection with the replacement, substitution, restoration or repair of assets to the
extent financed with (x) insurance proceeds paid on account of the loss of or damage to the assets being replaced,
restored or repaired or (y) awards of compensation arising from the taking by eminent domain or condemnation of
the assets being replaced,
(ii) the purchase price of equipment that is purchased simultaneously with the trade-in of existing
equipment to the extent that the gross amount of such purchase price is reduced by the credit granted by the seller of
such equipment for the equipment being traded in at such time,
(iii) the purchase of plant, property or equipment to the extent financed with the proceeds of Asset Sales
that are not applied to prepay Loans pursuant to Section 2.20,
(iv) expenditures that constitute Consolidated Lease Expense,
(v) expenditures that are accounted for as capital expenditures by the Borrower or any Restricted
Subsidiary and that actually are paid for by a Person other than the Borrower or any Restricted Subsidiary and for
which neither the Borrower nor any Restricted Subsidiary has provided or is required to provide or incur, directly or
indirectly, any consideration or obligation to such Person or any other Person (whether before, during or after such
period),
(vi) the book value of any asset owned by the Borrower or any Restricted Subsidiary prior to or during such
period to the extent that such book value is included as a capital expenditure during such period as a result of such
Person reusing or beginning to reuse such asset during such period without a corresponding expenditure actually
having been made in such period, provided that (x) any expenditure necessary in order to permit such asset to be
reused shall be included as a Capital Expenditure during the period in which such expenditure actually is made and
(y) such book value shall have been included in Capital Expenditures when such asset was originally acquired, or
(vii) expenditures that constitute acquisitions of Persons or business units permitted hereunder.
"Capital Stock" means (a) in the case of a corporation, corporate stock, (b) in the case of an association or business
entity, any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock, (c) in the case
of a partnership or limited liability company, partnership or membership interests (whether general or limited) and (d) any other
interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the
issuing Person.
"Capitalized Lease Obligation" means, at the time any determination thereof is to be made, the amount of the
liability in respect of a capital lease that would at such time be required to be capitalized and reflected as a liability on a balance sheet
(excluding the footnotes thereto) in accordance with GAAP.
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