Document:

EXHIBIT 4.6

 

[FORM OF FACE OF INITIAL NOTE]

[Global Notes Legend]

 

UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE
COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC) ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

TRANSFERS
OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND
TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS MADE IN
ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE
REVERSE HEREOF.

 

[[FOR
REGULATION S GLOBAL NOTE ONLY] UNTIL 40 DAYS AFTER THE LATER OF COMMENCEMENT OR
COMPLETION OF THE OFFERING, AN OFFER OR SALE OF SECURITIES WITHIN THE UNITED
STATES BY A DEALER (AS DEFINED IN THE SECURITIES ACT) MAY VIOLATE THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT IF SUCH OFFER OR SALE IS MADE
OTHERWISE THAN IN ACCORDANCE WITH RULE 144A THEREUNDER.]

 

[Restricted Notes Legend for Notes offered otherwise

than in Reliance on Regulation S]

 

THIS
NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM
REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND THIS NOTE MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN
THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. 
EACH PURCHASER OF THIS NOTE IS HEREBY NOTIFIED THAT THE SELLER OF THIS NOTE
MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF
THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.

 

THE
HOLDER OF THIS NOTE AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS
NOTE MAY BE OFFERED, RESOLD, PLEDGED OR

 

 

OTHERWISE
TRANSFERRED, ONLY (I) TO THE COMPANY, (II) WITHIN THE UNITED STATES
TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL
BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION
MEETING THE REQUIREMENTS OF RULE 144A, (III) OUTSIDE THE UNITED
STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE
SECURITIES ACT, (IV) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE) OR
(V) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT, IN EACH OF CASES (I) THROUGH (V) IN ACCORDANCE WITH ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND (B) THE
HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF
THIS NOTE FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.

 

[Restricted Notes Legend for Notes Offered in Reliance on Regulation S]

 

THIS
NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION ORIGINALLY
EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE TRANSFERRED IN THE UNITED
STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, ANY U.S. PERSON EXCEPT PURSUANT
TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT AND ALL APPLICABLE STATE SECURITIES LAWS.  TERMS USED ABOVE HAVE THE
MEANINGS GIVEN TO THEM IN REGULATION S UNDER THE SECURITIES ACT.

 

[Temporary Regulation S Global Note Legend]

 

EXCEPT
AS SET FORTH BELOW, BENEFICIAL OWNERSHIP INTERESTS IN THIS TEMPORARY
REGULATION S GLOBAL NOTE WILL NOT BE EXCHANGEABLE FOR INTERESTS IN THE
PERMANENT REGULATION S GLOBAL NOTE OR ANY OTHER NOTE REPRESENTING AN
INTEREST IN THE NOTES REPRESENTED HEREBY WHICH DO NOT CONTAIN A LEGEND
CONTAINING RESTRICTIONS ON TRANSFER, UNTIL THE EXPIRATION OF THE “40-DAY
DISTRIBUTION COMPLIANCE PERIOD” (WITHIN THE MEANING OF RULE 903(b)(2) OF
REGULATION S UNDER THE SECURITIES ACT) AND THEN ONLY UPON CERTIFICATION IN
FORM REASONABLY SATISFACTORY TO THE TRUSTEE THAT SUCH BENEFICIAL INTERESTS
ARE OWNED EITHER BY NON-U.S. PERSONS OR U.S. PERSONS WHO PURCHASED SUCH INTERESTS
IN A TRANSACTION THAT DID NOT REQUIRE REGISTRATION UNDER THE SECURITIES
ACT.  DURING SUCH 40-DAY DISTRIBUTION COMPLIANCE PERIOD, BENEFICIAL
OWNERSHIP INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL NOTE
MAY ONLY BE SOLD, PLEDGED OR TRANSFERRED (I) TO THE COMPANY, (II) OUTSIDE
THE UNITED STATES IN A TRANSACTION IN ACCORDANCE WITH RULE 904 OF
REGULATION S

 

2

 

UNDER
THE SECURITIES ACT, OR (III) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT, IN EACH OF CASES (I) THROUGH (III) IN
ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES.  HOLDERS OF INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL
NOTE WILL NOTIFY ANY PURCHASER OF THIS NOTE OF THE RESALE RESTRICTIONS REFERRED
TO ABOVE, IF THEN APPLICABLE.

 

AFTER
THE EXPIRATION OF THE DISTRIBUTION COMPLIANCE PERIOD BENEFICIAL INTERESTS IN
THIS TEMPORARY REGULATION S GLOBAL NOTE MAY BE EXCHANGED FOR
INTERESTS IN A RULE 144A GLOBAL NOTE ONLY IF (1) SUCH EXCHANGE OCCURS
IN CONNECTION WITH A TRANSFER OF THE NOTES IN COMPLIANCE WITH RULE 144A
AND (2) THE TRANSFEROR OF THE REGULATION S GLOBAL NOTE FIRST DELIVERS TO
THE TRUSTEE A WRITTEN CERTIFICATE (IN THE FORM ATTACHED TO THIS
CERTIFICATE) TO THE EFFECT THAT THE REGULATION S GLOBAL NOTE IS BEING
TRANSFERRED (A) TO A PERSON WHO THE TRANSFEROR REASONABLY BELIEVES TO BE A
QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A, (B) TO A
PERSON WHO IS PURCHASING FOR ITS OWN ACCOUNT OR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, AND
(C) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE
UNITED STATES AND OTHER JURISDICTIONS.

 

BENEFICIAL
INTERESTS IN A RULE 144A GLOBAL NOTE MAY BE TRANSFERRED TO A PERSON WHO
TAKES DELIVERY IN THE FORM OF AN INTEREST IN THE REGULATION S GLOBAL NOTE,
WHETHER BEFORE OR AFTER THE EXPIRATION OF THE 40-DAY DISTRIBUTION COMPLIANCE
PERIOD, ONLY IF THE TRANSFEROR FIRST DELIVERS TO THE TRUSTEE A WRITTEN
CERTIFICATE (IN THE FORM ATTACHED TO THIS CERTIFICATE) TO THE EFFECT THAT
SUCH TRANSFER IS BEING MADE IN ACCORDANCE WITH RULE 903 OR 904 OF
REGULATION S OR RULE 144 (IF AVAILABLE).

 

[Certificated Notes Legend]

 

IN
CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE NOTE REGISTRAR AND
TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH TRANSFER AGENT
MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE
FOREGOING RESTRICTIONS.

 

3

 

	
  No.                       

  	
  $                          

  

 

103/8% Senior Subordinated Notes
Due 2015

 

The
Neiman Marcus Group, Inc., a Delaware corporation, promises to pay to
                        ,
or registered assigns, the principal sum
of                          Dollars
on October 15, 2015.

 

Interest
Payment Dates:  April 15 and October  15.

 

Record
Dates:  April 1 and October 1.

 

Additional
provisions of this Note are set forth on the other side of this Note.

 

	
  Dated:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE NEIMAN MARCUS GROUP, INC.

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
    Name:

  
	
   

  	
   

  	
    Title:

  
	
   

  	
   

  
	
  TRUSTEE’S
  CERTIFICATE OF

  	
   

  
	
  AUTHENTICATION

  	
   

  
	
   

  	
   

  
	
  WELLS FARGO BANK, NATIONAL

  ASSOCIATION, as Trustee

  	
   

  
	
  certifies that this is one of the Notes

  referred to in the Indenture.

  	
   

  
	
   

  	
   

  
	
  By

  	
   

  	
   

  
	
   

  	
    Authorized
  Signatory

  	
   

  

 

4

 

[FORM OF REVERSE SIDE OF INITIAL NOTE]

 

103/8% Senior Subordinated Note
Due 2015

 

Capitalized
terms used herein but not defined herein shall have the meanings given to such
terms in the Indenture.

 

1.             Principal and Interest;
Subordination.

 

The
Neiman Marcus Group, Inc. (the “Company”) shall pay the principal of this
Note on October 15, 2015.

 

The
Company promises to pay interest and Additional Interest, if any, on the
principal amount of this Note on each Interest Payment Date, as set forth
below, at the rate of 103/8% per annum (subject to
adjustment as provided below).

 

Interest,
and Additional Interest, if any, shall be payable semi-annually (to the Holders
of the Notes at the close of business on April 1 or October 1
immediately preceding the Interest Payment Date) on each Interest Payment Date,
commencing April 15, 2006.

 

The
Holder of this Note is entitled to the benefits of the Exchange and
Registration Rights Agreement, dated October 6, 2005, among the Company,
Holdings, the Subsidiary Guarantors and the Initial Purchasers named therein
(the “Registration Rights Agreement”), including with respect to Additional
Interest.

 

Interest
on this Note shall accrue from the most recent date to which interest has been
paid or, if no interest has been paid, from October 6, 2005; provided that, if there is no existing
Default in the payment of interest and if this Note is authenticated between a
Regular Record Date referred to on the face hereof and the next succeeding
Interest Payment Date, interest shall accrue from such next succeeding Interest
Payment Date.  Interest shall be computed on the basis of a 360-day year
of twelve 30-day months.

 

The
Company shall pay interest and Additional Interest if any, on overdue principal
and premium, if any, and interest on overdue installments of interest, to the
extent lawful, at a rate per annum equal to the rate of interest applicable to
the Notes.

 

The
indebtedness evidenced by the Notes is, to the extent and in the manner
provided in the Indenture, subordinate and subject in right of payment to the
prior payment in full of all Senior Indebtedness, and this Note is issued
subject to such provisions.  Each Holder of this Note, by accepting the
same, (a) agrees to and shall be bound by such provisions, (b) authorizes
and directs the Trustee on its behalf to take such action as may be necessary
or appropriate to effectuate the subordination as provided in the Indenture and
(c) appoints the Trustee its attorney in-fact for such purpose.

 

5

 

 

2.             Method of Payment.

 

The
Company shall pay interest (except defaulted interest) on the principal amount
of the Notes on each April 15 and October 15 to the Persons who are
Holders (as reflected in the Note Register at the close of business on
April 1 and October 1 immediately preceding the Interest Payment
Date), in each case, even if the Note is transferred or exchanged after such
Regular Record Date, except as provided in Section 306(b) with respect
to Defaulted Interest; provided
that, with respect to the payment of principal, the Company shall make payment
to the Holder that surrenders this Note to any Paying Agent on or after
October 15, 2015.

 

The
Company shall pay principal (premium, if any) and interest in money of the
United States that at the time of payment is legal tender for payment of public
and private debts.  However, the Company may pay principal (premium, if
any) and interest by its check payable in such money.  The Company may pay
interest on the Notes either (a) by mailing a check for such interest to a
Holder’s registered address (as reflected in the Note Register) or (b) by
wire transfer to an account located in the United States maintained by the
payee.  If a payment date is a date other than a Business Day at a place
of payment, payment may be made at that place on the next succeeding day that
is a Business Day and no interest shall accrue for the intervening period.

 

3.             Paying Agent and Note
Registrar.

 

Initially,
Wells Fargo Bank, National Association (the “Trustee”) shall act as Paying
Agent and Note Registrar.  The Company may change any Paying Agent or Note
Registrar upon written notice thereto and without notice to the Holders. 
The Company, any Subsidiary or any Affiliate of any of them may act as Paying
Agent, Note Registrar or co-registrar.

 

4.             Indenture.

 

The
Company issued the Notes under a Senior Subordinated Indenture dated as of
October 6, 2005 (the “Indenture”), among the Company, Holdings, the
Subsidiary Guarantors and the Trustee.  The terms of the Notes include
those stated in the Indenture and those made part of the Indenture by reference
to the Trust Indenture Act.  The Notes are subject to all such terms, and
Holders are referred to the Indenture and the Trust Indenture Act for a statement
of all such terms.  To the extent permitted by applicable law, in the
event of any inconsistency between the terms of this Note and the terms of the
Indenture, the terms of the Indenture shall control.

 

The
Notes are unsecured senior subordinated obligations of the Company.  The
Indenture does not limit the aggregate principal amount of the Notes. 
Subject to the conditions set forth in the Indenture, the Company may issue
Additional Notes.

 

5.             Redemption.

 

At
any time prior to October 15, 2010, the Company may redeem all or a part
of the Notes, upon not less than 30 nor more than 60 days’ prior notice at a

 

6

 

redemption
price equal to 100% of the principal amount of Notes redeemed plus the
Applicable Premium as of, and accrued and unpaid interest and Additional
Interest, if any, to the Redemption Date, subject to the rights of Holders on
the relevant record date to receive interest due on the relevant Interest
Payment Date.

 

On
and after October 15, 2010, the Company may redeem the Notes, in whole or
in part, upon not less than 30 nor more than 60 days’ prior notice to each
Holder at the Redemption Prices (expressed as percentages of principal amount)
set forth below, plus accrued and unpaid interest thereon and Additional
Interest, if any, to the applicable Redemption Date, subject to the right of
Holders on the relevant record date to receive interest due on the relevant
Interest Payment Date, if redeemed during the twelve-month period beginning on
October 15 of each of the years indicated below:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
  2010

  	
   

  	
  105.188

  	
  %

  
	
  2011

  	
   

  	
  103.458

  	
  %

  
	
  2012

  	
   

  	
  101.729

  	
  %

  
	
  2013 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

In
addition, until October 15, 2008, the Company may, at its option, redeem
up to 35% of the aggregate principal amount of Notes issued under the Indenture
at a redemption price equal to 110.375% of the aggregate principal amount
thereof, plus accrued and unpaid interest thereon and Additional Interest, if
any, to the applicable Redemption Date, subject to the right of Holders on the
relevant record date to receive interest due on the relevant Interest Payment
Date, with the net cash proceeds of one or more Equity Offerings of the Company
or any direct or indirect parent of the Company to the extent such net cash
proceeds are contributed to the Company; provided
that at least 50% of the sum of the aggregate principal amount of
Notes originally issued under the Indenture remains Outstanding immediately
after the occurrence of each such redemption; provided,
further,  that each
such redemption occurs within 90 days of the date of closing of each such
Equity Offering.

 

6.             Repurchase upon a Change of
Control and Asset Sales.

 

Upon
the occurrence of (a) a Change of Control, the Holders shall have the
right to require that the Company purchase such Holder’s outstanding Notes, in
whole or in part, at a purchase price of 101% of the principal amount thereof,
plus accrued and unpaid interest and Additional Interest, if any, to the date
of purchase and (b) Asset Sales, the Company may be obligated to make
offers to purchase Notes and Senior Subordinated Indebtedness of the Company
with a portion of the Net Proceeds of such Asset Sales at a redemption price of
100% of the principal amount thereof plus accrued and unpaid interest and
Additional Interest, if any, to the date of purchase.

 

7

 

7.             Denominations; Transfer;
Exchange.

 

The
Notes are in registered form without coupons in denominations of $2,000
principal amount and integral multiples of $1,000.  A Holder may transfer
or exchange Notes in accordance with the Indenture.  The Note Registrar
and the Trustee may require a Holder, among other things, to furnish
appropriate endorsements and transfer documents and the Company may require a
Holder to pay any taxes and fees required by law or permitted by the
Indenture.  The Note Registrar need not register the transfer or exchange
of a Note or portion of a Note selected for redemption (except, in the case of
a Note to be redeemed in part, the portion of the Note not to be redeemed) or
any Note or portion of a Note for a period of 15 days before a selection of
Notes to be redeemed or 15 days before an interest payment date.

 

8.             Persons Deemed Owners.

 

A
registered Holder may be treated as the owner of a Note for all purposes.

 

9.             Unclaimed Money.

 

Subject
to any laws relating to abandoned property, if money for the payment of
principal (premium, if any) or interest remains unclaimed for two years, the
Trustee and the Paying Agent shall pay the money back to the Company at its
request or (if then held by the Company) shall be discharged from such
trust.  After that, Holders entitled to the money must look to the Company
for payment and all liability of the Trustee and such Paying Agent with respect
to such money, and all liability of the Company as trustee thereof, shall
cease.

 

10.           Discharge and Defeasance
Prior to Redemption or Maturity.

 

Subject
to satisfaction of conditions set forth in the Indenture, the Company at any
time may terminate some or all of its obligations under the Notes and the
Indenture if the Company irrevocably deposits with the Trustee cash or
Government Securities or a combination thereof sufficient for the payment of
the then outstanding principal of and interest on the Notes to Redemption or
Stated Maturity, as the case may be.

 

11.           Amendment; Supplement;
Waiver.

 

Subject
to certain exceptions, the Indenture or the Notes may be amended or
supplemented with the consent of the Holders of at least a majority in
aggregate principal amount of the Outstanding Notes, including consents
obtained in connection with a purchase of, or tender offer or exchange offer
for, the Notes, and any existing Default or compliance with any provision of
the Indenture or the Notes may be waived with the consent of the Holders of a
majority in aggregate principal amount of the Outstanding Notes.  Without
notice to or the consent of any Holder, the parties thereto may amend or
supplement the Indenture or the Notes to, among other things, cure any

 

8

 

ambiguity,
omission, mistake, defect or inconsistency and make any change that does not
adversely affect the legal rights of any Holder.

 

12.           Restrictive Covenants.

 

The
Indenture contains certain covenants, including covenants with respect to the
following matters: (i) Restricted Payments; (ii) incurrence of
Indebtedness and issuance of Disqualified Stock and Preferred Stock;
(iii) Liens; (iv) transactions with Affiliates; (v) dividend and
other payment restrictions affecting Restricted Subsidiaries;
(vi) guarantees of Indebtedness by Restricted Subsidiaries;
(vii) incurrence of other Senior Subordinated Indebtedness;
(viii) merger, consolidation or sale of all or substantially all assets;
(ix) purchase of Notes upon a Change in Control; and (x) disposition
of proceeds of Asset Sales.  Within 120 days (or the successor time period
then in effect under the rules and regulations of the Exchange Act) after
the end of each fiscal year, the Company must report to the Trustee on
compliance with such limitations.

 

13.           Successor Persons.

 

When
a successor Person or other entity assumes all the obligations of its
predecessor under the Notes and the Indenture, the predecessor Person shall be
released from those obligations, subject to certain exceptions.

 

14.           Remedies for Events of
Default.

 

If
an Event of Default, as defined in the Indenture, occurs and is continuing, the
Trustee or the Holders of at least 30% in principal amount of the Outstanding
Notes may declare all Outstanding Notes to be immediately due and payable; provided, however, that, so long as any
Indebtedness permitted to be incurred under the Indenture as part of the Senior
Credit Facilities or the Senior Notes shall be outstanding, no such acceleration
shall be effective until the earlier of (1) acceleration of any such
Indebtedness under the Senior Credit Facilities and the Senior Notes, or
(2) five Business Days after the giving of written notice of such
acceleration to the Company, the administrative agent under the Senior Credit
Facilities and the trustee under the Senior Indenture.  If an Event of
Default arising from certain events of bankruptcy or insolvency with respect to
the Company or any Significant Subsidiary occurs and is continuing, the Notes
automatically become immediately due and payable.  Subject to the
provisions of the Indenture relating to the duties of the Trustee, in case an
Event of Default occurs and is continuing, the Trustee shall be under no
obligation to exercise any rights or powers under the Indenture at the request
or direction of any of the Holders unless such Holders have offered to the
Trustee reasonable indemnity or security against any loss, liability or
expense.  Subject to certain restrictions, the Holders of a majority in
principal amount of the Outstanding Notes are given the right to direct the
time, method and place of conducting any proceeding for any remedy available to
the Trustee or of exercising any trust or power conferred on the Trustee. 
The Trustee, however, may refuse to follow any direction that conflicts with
law or the Indenture or that the Trustee determines is unduly prejudicial to
the rights of any other Holder of a Note or that would involve the Trustee in
personal liability.

 

9

 

15.           Guarantees.

 

The
Company’s obligations under the Notes are fully, irrevocably and
unconditionally guaranteed on an unsecured senior subordinated basis, to the
extent set forth in the Indenture, by Holdings and each of the Subsidiary
Guarantors.

 

16.           Trustee Dealings with
Company.

 

The
Trustee under the Indenture, in its individual or any other capacity, may
become the owner or pledgee of Notes and may make loans to, accept deposits
from, perform services for, and otherwise deal with, the Company and its
Affiliates as if it were not the Trustee.

 

17.           Authentication.

 

This
Note shall not be valid until the Trustee signs the certificate of
authentication on the other side of this Note.

 

18.           Abbreviations.

 

Customary
abbreviations may be used in the name of a Holder or an assignee, such
as:  TEN COM (= tenants in common), TEN ENT (= tenants by the entireties),
JT TEN (= joint tenants with right of survivorship and not as tenants in
common), CUST (= Custodian) and U/G/M/A (= Uniform Gifts to Minors Act).

 

19.           CUSIP Numbers.

 

Pursuant
to a recommendation promulgated by the Committee on Uniform Security
Identification Procedures, the Company has caused CUSIP numbers to be printed
on the Notes and has directed the Trustee to use CUSIP numbers in notices of
redemption as a convenience to Holders.  No representation is made as to
the accuracy of such numbers either as printed on the Notes or as contained in
any notice of redemption and reliance may be placed only on the other identification
numbers placed thereon.

 

20.           Holders’ Compliance with the
Registration Rights Agreement.

 

Each
Holder of a Note, by acceptance hereof, acknowledges and agrees to the
provisions of the Registration Rights Agreement, including the obligations of
the Holders with respect to a registration and the indemnification of the
Company to the extent provided therein.

 

21.           Governing Law.

 

THIS SECURITY AND THE INDENTURE SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

10

 

The
Company shall furnish to any Holder upon written request and without charge a
copy of the Indenture.  Requests may be made to The Neiman Marcus
Group, Inc., 1618 Main Street, Dallas, Texas 75201, Attention: General
Counsel.

 

11Exhibit 4.7

 

$1,200,000,000

 

NEWTON
ACQUISITION MERGER SUB, INC.

 

$700,000,000
9%/93/4% Senior Notes due 2015

$500,000,000 103/8% Senior Subordinated Notes due 2015

 

REGISTRATION
RIGHTS AGREEMENT

 

October 6, 2005

 

	
  CREDIT SUISSE FIRST BOSTON LLC

  
	
  DEUTSCHE BANK SECURITIES INC.

  
	
  BANC OF AMERICA SECURITIES LLC

  
	
  GOLDMAN, SACHS & CO.,

  
	
    c/o Credit Suisse First Boston LLC,

  
	
  Eleven Madison Avenue,

  
	
  New York, N.Y. 10010-3629

  

 

Dear
Sirs:

 

Newton
Acquisition Merger Sub, Inc., a Delaware corporation (the “Merger Sub”), proposes to issue and sell to
Credit Suisse First Boston LLC, Deutsche Bank Securities Inc., Banc of America
Securities LLC and Goldman, Sachs & Co. (collectively, the “Initial Purchasers”), upon the terms set
forth in a purchase agreement dated September 28, 2005 (the “Purchase Agreement”), $700,000,000
principal amount of its 9%/93⁄4% Senior Notes due 2015 (the “Senior Notes”), and $500,000,000 principal
amount of its 103/8% Senior Subordinated Notes
due 2015 (the “Senior Subordinated Notes”
and, together with the Senior Notes, the “Initial
Securities”) to be unconditionally guaranteed (the “Guarantees”) by Newton Acquisition Inc. (“Holdings”) and, immediately following the
Merger (as defined in the Purchase Agreement), by each of the subsidiary
guarantors listed in Schedule I hereto (collectively, and together with
Holdings, the “Guarantors” and,
together with the Issuer (as defined below), the “Company”). As used in this Agreement, the term “Issuer” means, prior to the Merger, Merger
Sub and, thereafter, The Neiman Marcus Group, Inc., a Delaware
corporation. The Initial Securities will be issued pursuant to separate
Indentures, each dated as of October 6, 2005, (each, an “Indenture”) among the Issuer, the
Guarantors and Wells Fargo Bank, National Association, as trustee (the “Trustee”). As an inducement to the Initial
Purchasers to enter into the Purchase Agreement, the Company agrees with the
Initial Purchasers, for the benefit of the holders of the Initial Securities
(including, without limitation, the Initial Purchasers), the Exchange
Securities (as defined below) and the Private Exchange Securities (as defined
below) (collectively the “Holders”)
and each Market Maker (as defined below) as follows:

 

1.  Registered Exchange Offer.  The
Company shall, at its own cost, use its reasonable best efforts to prepare and
file with the Securities and Exchange Commission (the “Commission”) one or more registration
statements (collectively, the “Exchange Offer
Registration Statement”) on an appropriate form under the Securities
Act of 1933, as amended (the “Securities Act”),
with respect to a proposed offer (the “Registered
Exchange Offer”) to the Holders of Transfer Restricted Securities
(as defined in Section 7 hereof), who are not prohibited by any law or
policy of the Commission from participating in the Registered Exchange Offer,
to issue and deliver to such Holders, in exchange for the Initial Securities, a
like aggregate principal amount of debt securities (the “Exchange Securities”) of the Company issued
under the applicable Indenture and identical in all material respects to the
applicable series of Initial Securities surrendered by such Holder (except for
the transfer restrictions relating to the Initial Securities and the provisions
relating to the matters described in Section 7 hereof) that would be
registered under the Securities Act.  The Company shall use its reasonable
best efforts to (i) cause such Exchange Offer Registration Statement to be
declared effective under the Securities Act and (ii) keep the Exchange
Offer Registration Statement effective for not less than 20 business days
(or longer, if required by applicable law)

 

 

after
the date notice of the Registered Exchange Offer is mailed to the Holders (such
period being called the “Exchange Offer Registration
Period”).

 

If
the Company effects the Registered Exchange Offer, the Company (i) will be
entitled to close the Registered Exchange Offer 20 business days after the
commencement thereof (provided that the Company has accepted all the Initial Securities
theretofore validly tendered in accordance with the terms of the Registered
Exchange Offer) and (ii) will use its reasonable best efforts to
consummate the Registered Exchange Offer not later than 360 days (or if
the 360th day is
not a business day, the first business day thereafter) after the date of
original issue of the Initial Securities (the “Issue Date”) (such 360th day, or the first business day thereafter, the
“Consummation Deadline”).

 

The
Company may, in its discretion, accept tenders of Initial Securities for
Exchange Securities after the date that the Company consummates the Registered
Exchange Offer with respect to Initial Securities tendered as of the date of
initial consummation and, for purposes of Section 7(a)(ii), the Registered
Exchange Offer shall be deemed to have been consummated notwithstanding any
such extension of the tender period.

 

Following
the declaration of the effectiveness of the applicable Exchange Offer
Registration Statement, the Company shall promptly commence the Registered
Exchange Offer for the applicable series of the Initial Securities, it being
the objective of such Registered Exchange Offer to enable each Holder of
Transfer Restricted Securities electing to exchange the Initial Securities of
such series for Exchange Securities of the same series (assuming that such
Holder is not an affiliate of the Company within the meaning of the Securities
Act, acquires the Exchange Securities in the ordinary course of such Holder’s
business and has no arrangements or understanding with any person to
participate in the distribution of the Exchange Securities and is not
prohibited by any law or policy of the Commission from participating in the
Registered Exchange Offer) to trade such Exchange Securities from and after
their receipt without any limitations or restrictions under the Securities Act
and without material restrictions under the securities laws of the several
states of the United States.  The Company’s obligations under each
Registered Exchange Offer and each Private Exchange shall be subject to the
conditions that (i) such Registered Exchange Offer or Private Exchange, as
the case may be, does not violate applicable law or any applicable
interpretation of the staff of the SEC; (ii) no action or proceeding shall
have been instituted or threatened in any court or by any governmental agency
which might materially impair the ability of the Issuer to proceed with such
Registered Exchange Offer or Private Exchange, and no material adverse
development shall have occurred in any existing action or proceeding with
respect to the Company; and (iii) all governmental approvals that the
Company deems necessary for the consummation of such Registered Exchange Offer
or Private Exchange shall have been obtained.

 

The
Company acknowledges that, pursuant to current interpretations by the
Commission’s staff of Section 5 of the Securities Act, in the absence of
an applicable exemption therefrom, (i) each Holder which is a broker or
dealer registered under the Exchange Act of 1934, as amended (the “Exchange Act”) (a “broker-dealer”) electing
to exchange Initial Securities, acquired for its own account as a result of
market making activities or other trading activities, for Exchange Securities
(an “Exchanging Dealer”), is
required to deliver a prospectus containing the information set forth in
(a) Annex A hereto on the cover, (b) Annex B hereto in the “Exchange
Offer Procedures” section and the “Purpose of the Exchange Offer” section,
and (c) Annex C hereto in the “Plan of Distribution” section of such
prospectus in connection with a sale of any such Exchange Securities received
by such Exchanging Dealer pursuant to the Registered Exchange Offer and
(ii) an Initial Purchaser that elects to sell Private Exchange Securities
(as defined below) acquired in exchange for Initial Securities constituting any
portion of an unsold allotment is required to deliver a prospectus containing
the information required by Items 507 or 508 of Regulation S-K under the
Securities Act, as applicable, in connection with such sale.  All
references in this Agreement to “prospectus” shall, except when context
otherwise requires, include any prospectus (or amendment or supplement thereto)
filed with the Commission pursuant to Section 4 of this Agreement.

 

The
Company shall use its reasonable best efforts to keep each Exchange Offer
Registration Statement effective and to amend and supplement the prospectus
contained therein, in order to permit such prospectus to be lawfully delivered
by all persons subject to the prospectus delivery requirements of the
Securities Act for such period of time as such persons must comply with such
requirements in order to resell

 

2

 

the
Exchange Securities; provided, however, that (i) in the case where such
prospectus and any amendment or supplement thereto must be delivered by an
Exchanging Dealer or an Initial Purchaser, such period shall be the lesser of
180 days (or such shorter period during which such person is required by
applicable law to deliver such prospectus) and the date on which all Exchanging
Dealers and the Initial Purchasers have sold all Exchange Securities held by
them (unless such period is extended pursuant to Section 3(j) below)
and (ii) the Company shall make such prospectus and any amendment or
supplement thereto, available to any broker-dealer or other person with similar
prospectus delivery requirements for use in connection with any resale of any
series of Exchange Securities for a period of not less than 90 days after the
effective date of the Exchange Offer Registration Statement relating to such
series (or such shorter period during which such persons are required by
applicable law to deliver such prospectus).

 

If,
upon consummation of each Registered Exchange Offer, any Initial Purchaser
holds Initial Securities acquired by it as part of its initial distribution,
the Company, simultaneously with the delivery of the Exchange Securities
pursuant to the Registered Exchange Offer, shall issue and deliver to such
Initial Purchaser upon the written request of such Initial Purchaser, in
exchange (the “Private Exchange”)
for the Initial Securities held by such Initial Purchaser, a like principal
amount of debt securities of the Company issued under the applicable Indenture
and identical in all material respects (including the existence of restrictions
on transfer under the Securities Act and the securities laws of the several
states of the United States, but excluding provisions relating to the matters
described in Section 7 hereof) to the Initial Securities (the “Private Exchange Securities”).  The
Initial Securities, the Exchange Securities and the Private Exchange Securities
are herein collectively called the “Securities”.

 

In
connection with each Registered Exchange Offer, the Company shall:

 

(a)  mail to each
Holder a copy of the prospectus forming part of the applicable Exchange Offer
Registration Statement, together with an appropriate letter of transmittal and
related documents;

 

(b)  keep the
applicable Registered Exchange Offer open for not less than 30 days (or longer,
if required by applicable law) after the date notice thereof is mailed to the
Holders;

 

(c)  utilize the
services of a depositary for the applicable Registered Exchange Offer with an
address in the Borough of Manhattan, The City of New York, which may be the
Trustee or an affiliate of the Trustee;

 

(d)  permit
Holders to withdraw tendered Securities at any time prior to the close of
business, New York time, on the last business day on which the applicable Registered
Exchange Offer shall remain open; and

 

(e)  otherwise
comply with all applicable laws.

 

As
soon as practicable after the close of the applicable Registered Exchange Offer
or the applicable Private Exchange, as the case may be, the Company shall:

 

(x)  accept for
exchange all the Initial Securities validly tendered and not withdrawn pursuant
to such Registered Exchange Offer and such Private Exchange;

 

(y)  deliver to
the Trustee for cancellation all the Initial Securities so accepted for
exchange; and

 

(z)  cause the
Trustee to authenticate and deliver promptly to each Holder of the Initial
Securities, Exchange Securities or Private Exchange Securities of each series,
as the case may be, equal in principal amount to the Initial Securities of such
series of such Holder so accepted for exchange.

 

Each
Indenture will provide that the Exchange Securities will not be subject to the
transfer restrictions set forth in the applicable Indenture and that all the
Securities issued pursuant to such Indenture

 

3

 

will
vote and consent together on all matters as one class and that none of the
Securities will have the right to vote or consent as a class separate from one
another on any matter.

 

Interest
on each Exchange Security and Private Exchange Security issued pursuant to each
Registered Exchange Offer and in each Private Exchange will accrue from the
last interest payment date on which interest was paid on the Initial Securities
surrendered in exchange therefor or, if no interest has been paid on the
Initial Securities, from the Issue Date.

 

Each
Holder participating in each Registered Exchange Offer shall be required to
represent to the Company that at the time of the consummation of the applicable
Registered Exchange Offer that: (i) any Exchange Securities received by
such Holder will be acquired in the ordinary course of business, (ii) such
Holder will have no arrangements or understanding with any person to
participate in the distribution (within the meaning of the Securities Act) of
the Exchange Securities, (iii) such Holder is not an “affiliate,” as
defined in Rule 405 of the Securities Act, of the Company or if it is an “affiliate”,
such Holder will comply with the registration and prospectus delivery requirements
of the Securities Act to the extent applicable, (iv) if such Holder is not
a broker-dealer, that it is not engaged in, and does not intend to engage in,
the distribution of the Exchange Securities and (v) if such Holder is a
broker-dealer, that it will receive Exchange Securities for its own account in
exchange for Initial Securities that were acquired as a result of market-making
activities or other trading activities and that it will comply with the
applicable provisions of the Securities Act (including, but not limited to
delivery of a prospectus in connection with any resale of such Exchange
Securities).

 

Upon
consummation of the Registered Exchange Offer in accordance with this
Section 2 with respect to each series of the Initial Securities, the provisions
of this Agreement shall continue to apply solely with respect to Transfer
Restricted Securities of such series that are Private Exchange Securities, as
to which Section 2 is applicable and Exchange Securities of such series
held by Participating Broker-Dealers, and the Company shall have no further
obligation to register any other Securities of such series pursuant hereto.

 

2.  Shelf Registration.  If,
(i) because of any change in law or in applicable interpretations of the
staff of the Commission, the Company is not permitted to effect a Registered
Exchange Offer, as contemplated by Section 1 hereof, (ii) for any
other reason a Registered Exchange Offer is not consummated within
360 days of the Issue Date, (iii) any Initial Purchaser shall notify
the Company following consummation of the applicable Registered Exchange Offer
that the Initial Securities (or the Private Exchange Securities) held by it are
not eligible to be exchanged for Exchange Securities in such Registered
Exchange Offer or (iv) any Holder (other than an Exchanging Dealer)
notifies the Company within 30 days after the consummation of the applicable
Registered Exchange Offer that it is prohibited by law or Commission policy
from participating in such Registered Exchange Offer or, in the case of any
Holder (other than an Exchanging Dealer) that participates in such Registered
Exchange Offer, such Holder may not resell the Exchange Securities acquired by
it in such Registered Exchange Offer to the public without delivering a
prospectus and so notifies the Company within 30 days after such Holder first
becomes aware of such restrictions, the Company shall take the following
actions:

 

(a)  The Company
shall, at its cost, promptly file with the Commission and thereafter shall use
its reasonable best efforts to, no later than 360 days after the Issue Date (or
if the 360th day is not a business day, the first business
day thereafter) (such 360th day, or the first business day
thereafter, as the case may be, being an “Effectiveness
Deadline”), cause to be declared effective under the Securities Act
a registration statement (the “Shelf
Registration Statement” and, together with the applicable Exchange
Offer Registration Statement and any applicable Market Making Registration
Statement (as defined below), a “Registration
Statement”) on an appropriate form under the Securities Act relating
to the offer and sale of the Transfer Restricted Securities of each series by
the Holders thereof from time to time in accordance with the methods of
distribution set forth in the applicable Shelf Registration Statement and
Rule 415 under the Securities Act (hereinafter, the “Shelf Registration”); provided, however,
that no Holder (other than an Initial Purchaser) shall be entitled to have the
Securities held by it covered by such Shelf Registration Statement unless such
Holder agrees in writing to be bound by all the provisions of this Agreement
applicable to such Holder.

 

4

 

(b)  The Company
shall use its reasonable best efforts to keep each Shelf Registration Statement
continuously effective in order to permit the prospectus included therein to be
lawfully delivered by the Holders of the relevant Securities, for a period of
two years (or for such longer period if extended pursuant to Section 3(j) below)
from the Issue Date or such shorter period that will terminate when all the
Securities covered by such Shelf Registration Statement (i) have been sold
pursuant thereto or (ii) are no longer restricted securities (as defined
in Rule 144 under the Securities Act, or any successor
rule thereof).  The Company shall be deemed not to have used its
reasonable best efforts to keep each Shelf Registration Statement effective
during the requisite period if it voluntarily takes any action that would
result in Holders of Securities covered thereby not being able to offer and
sell such Securities during that period, unless such action is required by
applicable law or is taken pursuant to Section 3(j) hereof.

 

(c)  Notwithstanding
any other provisions of this Agreement to the contrary, the Company shall cause
each Shelf Registration Statement and the related prospectus and any amendment
or supplement thereto, as of the effective date of such Shelf Registration
Statement, amendment or supplement, (i) to comply in all material respects
with the applicable requirements of the Securities Act and the rules and
regulations of the Commission and (ii) not to contain any untrue statement
of a material fact or omit to state a material fact required to be stated
therein or necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading.

 

Notwithstanding any other provisions of this
Agreement to the contrary, at any time, the Company may delay the filing of any
Shelf Registration Statement or delay or suspend the effectiveness thereof, for
a reasonable period of time, but not in excess of 60 consecutive days with no
more than three such delays in filing or delays or suspension of effectiveness
during any calendar year (each, a “Shelf
Suspension Period”), if the Company determines reasonably and in
good faith that the filing of any such Shelf Registration Statement or the
continuing effectiveness thereof would require the disclosure of non-public
material information that, in the reasonable judgment of the Board of Directors
of the Company, would be detrimental to the Company if so disclosed or would
otherwise materially adversely affect a financing, acquisition, disposition,
merger or other material transaction or such action is required by applicable
law.

 

3.  Registration Procedures.  In
connection with any Shelf Registration contemplated by Section 2 hereof
and, to the extent applicable, any Registered Exchange Offer contemplated by
Section 1 hereof, the following provisions shall apply:

 

(a)  The Company
shall (i) furnish to each Initial Purchaser, prior to the filing thereof
with the Commission to the extent reasonably practicable, a copy of the
applicable Registration Statement and each amendment thereof and each
supplement, if any, to the prospectus included therein and, in the event that
an Initial Purchaser (with respect to any portion of an unsold allotment from
the original offering) is participating in such Registered Exchange Offer or
such Shelf Registration Statement, the Company shall use its reasonable best
efforts to reflect in each such document, when so filed with the Commission,
such comments as such Initial Purchaser reasonably may propose;
(ii) include the information set forth in Annex A hereto on the cover, in
Annex B hereto in the “Exchange Offer Procedures” section and the “Purpose
of the Exchange Offer” section and in Annex C hereto in the “Plan of
Distribution” section of the prospectus forming a part of the Exchange Offer
Registration Statement and include the information set forth in Annex D hereto
in the Letter of Transmittal delivered pursuant to the Registered Exchange
Offer; (iii) if requested by an Initial Purchaser, include the information
required by Items 507 or 508 of Regulation S-K under the Securities Act, as
applicable, in the prospectus forming a part of the applicable Exchange Offer
Registration Statement; (iv) include within the prospectus contained in
the applicable Exchange Offer Registration Statement a section entitled “Plan
of Distribution,” reasonably acceptable to the Initial Purchasers, which shall
contain a summary statement of the positions taken or policies made by the
staff of the Commission with respect to the potential “underwriter” status of
any broker-dealer that is the beneficial owner (as defined in Rule 13d-3
under the Exchange Act) of Exchange Securities received by such broker-dealer
in the Registered Exchange Offer (a “Participating
Broker-Dealer”), whether such positions or policies have been
publicly disseminated by the staff of the Commission or such positions or
policies, in the

 

5

 

reasonable judgment of the Initial Purchasers based
upon advice of counsel (which may be in-house counsel), represent the
prevailing views of the staff of the Commission; and (v) in the case of a
Shelf Registration Statement, include the names of the Holders, who propose to
sell Securities pursuant to such Shelf Registration Statement, as selling security
holders.

 

(b)  The Company
shall give written notice to the Initial Purchasers, the Holders of the
Securities and any Participating Broker-Dealer from whom the Company has
received prior written notice that it will be a Participating Broker-Dealer in
the applicable Registered Exchange Offer (which notice pursuant to clauses
(ii)-(v) hereof shall be accompanied by an instruction to suspend the use
of the prospectus until the requisite changes have been made):

 

(i)  when the
applicable Registration Statement or any amendment thereto has been filed with
the Commission and when the applicable Registration Statement or any
post-effective amendment thereto has become effective;

 

(ii)  of any
request by the Commission for amendments or supplements to the applicable Registration
Statement or the prospectus included therein or for additional information;

 

(iii)  of the
issuance by the Commission of any stop order suspending the effectiveness of
the applicable Registration Statement or the initiation of any proceedings for
that purpose;

 

(iv)  of the
receipt by the Company or its legal counsel of any notification with respect to
the suspension of the qualification of the Securities for sale in any
jurisdiction or the initiation or threatening of any proceeding for such purpose;
and

 

(v)  of the
happening of any event that requires the Company to make changes in the
applicable Registration Statement or the prospectus in order that the
applicable Registration Statement or the prospectus do not contain an untrue
statement of a material fact nor omit to state a material fact required to be
stated therein or necessary to make the statements therein (in the case of the
prospectus, in light of the circumstances under which they were made) not
misleading.

 

(c)  The Company
shall use its reasonable best efforts to obtain the withdrawal at the earliest
possible time of any order suspending the effectiveness of each Registration
Statement.

 

(d)  The Company
shall furnish to each Holder of Securities included within the coverage of each
Shelf Registration, without charge, if the Holder so requests in writing, at
least one copy of the applicable Shelf Registration Statement and any
post-effective amendment thereto, including financial statements and schedules,
and, if the Holder so requests in writing, all exhibits thereto (including
those, if any, incorporated by reference).

 

(e)  The Company
shall deliver to each Exchanging Dealer, upon its request, and each Initial
Purchaser, and to any other Holder who so requests, without charge, at least
one copy of the applicable Exchange Offer Registration Statement and any
post-effective amendment thereto, including financial statements and schedules,
and, if any Initial Purchaser or any such Holder requests, all exhibits thereto
(including those incorporated by reference).

 

(f)  The Company
shall, during each Shelf Registration Period, deliver to each Holder of
Securities included within the coverage of the applicable Shelf Registration,
without charge, as many copies of the prospectus (including each preliminary
prospectus) included in the applicable Shelf Registration Statement and any
amendment or supplement thereto as such person may reasonably request. The
Company consents, subject to the provisions of this Agreement, to the use of
the prospectus or any amendment or supplement thereto by each of the selling
Holders of the Securities in connection with the offering and sale of the
Securities covered by the prospectus, or any amendment or supplement thereto,
included in the applicable Shelf Registration Statement.

 

6

 

(g)  The Company
shall deliver to each Initial Purchaser, any Exchanging Dealer, any
Participating Broker-Dealer and such other persons required to deliver a
prospectus following each Registered Exchange Offer, without charge, as many
copies of the final prospectus included in the applicable Exchange Offer
Registration Statement and any amendment or supplement thereto as such persons
may reasonably request.  The Company consents, subject to the provisions
of this Agreement, to the use of the prospectus or any amendment or supplement
thereto by any Initial Purchaser, if necessary, any Exchanging Dealer, any
Participating Broker-Dealer and such other persons required to deliver a
prospectus following the applicable Registered Exchange Offer in connection
with the offering and sale of the Exchange Securities covered by the
prospectus, or any amendment or supplement thereto, included in such Exchange
Offer Registration Statement.

 

(h)  Prior to any
public offering of the Securities, pursuant to any Registration Statement, the
Company shall register or qualify or cooperate with the Holders of the
Securities included therein and their respective counsel in connection with the
registration or qualification of the Securities for offer and sale under the
securities or “blue sky” laws of such states of the United States as any Holder
of the Securities reasonably requests in writing and do any and all other acts
or things necessary or advisable to enable the offer and sale in such
jurisdictions of the Securities covered by such Registration Statement;
provided, however, that the Company shall not be required to (i) qualify
generally to do business in any jurisdiction where it is not then so qualified
or (ii) take any action which would subject it to general service of
process or to taxation in any jurisdiction where it is not then so subject.

 

(i)  The Company
shall cooperate with the Holders of the Securities to facilitate the timely
preparation and delivery of certificates representing the Securities to be sold
pursuant to any Registration Statement free of any restrictive legends and in
such denominations and registered in such names as the Holders may request a
reasonable period of time prior to sales of the Securities pursuant to such
Registration Statement.

 

(j)  Upon the
occurrence of any event contemplated by paragraphs (ii) through
(v) of Section 3(b) above during the period for which the
Company is required to maintain an effective Registration Statement, the
Company shall promptly prepare and file a post-effective amendment to each
Registration Statement or a supplement to the related prospectus and any other
required document so that, as thereafter delivered to Holders of the Securities
or purchasers of Securities, the prospectus will not contain an untrue
statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading.  If the Company
notifies the Initial Purchasers, the Holders of the Securities and any known
Participating Broker-Dealer in accordance with paragraphs (ii) through
(v) of Section 3(b) above to suspend the use of the prospectus
until the requisite changes to the prospectus have been made, then the Initial
Purchasers, the Holders of the Securities and any such Participating
Broker-Dealers shall suspend use of such prospectus, and the period of
effectiveness of the applicable Shelf Registration Statement provided for in
Section 2(b) above and the applicable Exchange Offer Registration
Statement provided for in Section 1 above shall each be extended by the
number of days from and including the date of the giving of such notice to and
including the date when the Initial Purchasers, the Holders of the Securities
and any known Participating Broker-Dealer shall have received such amended or
supplemented prospectus pursuant to this Section 3(j).

 

(k)  Not later
than the effective date of the applicable Registration Statement, the Company
will provide a CUSIP number for the Initial Securities, the Exchange Securities
or the Private Exchange Securities, as the case may be, and provide the
applicable trustee with printed certificates for the Initial Securities, the
Exchange Securities or the Private Exchange Securities, as the case may be, in
a form eligible for deposit with The Depository Trust Company.

 

(l)  The Company
will comply with all rules and regulations of the Commission to the extent
and so long as they are applicable to each Registered Exchange Offer or each
Shelf Registration and will make generally available to its security holders
(or otherwise provide in accordance with Section 11(a) of the
Securities Act) an earnings statement satisfying the

 

7

 

provisions of Section 11(a) of the
Securities Act, no later than 45 days after the end of a 12-month period (or 90
days, if such period is a fiscal year) beginning with the first month of the
Company’s first fiscal quarter commencing after the effective date of the
Registration Statement, which statement shall cover such 12-month period.

 

(m)  The Company
shall cause the Indentures to be qualified under the Trust Indenture Act of
1939, as amended (the “Trust Indenture Act”),
in a timely manner and containing such changes, if any, as shall be necessary
for such qualification.  In the event that such qualification would
require the appointment of a new trustee under either Indenture, the Company
shall appoint a new trustee thereunder pursuant to the applicable provisions of
the relevant Indenture.

 

(n)  The Company
may require each Holder of Securities to be sold pursuant to any Shelf
Registration Statement to furnish to the Company such information regarding the
Holder and the distribution of the Securities as the Company may from time to
time reasonably require for inclusion in the Shelf Registration Statement
including requiring the Holder to properly complete and execute any selling
security holder notices and questionnaires, and any amendments or supplements
thereto, that it may reasonably deem necessary or appropriate, and the Company
may exclude from such registration the Securities of any Holder that
unreasonably fails to furnish such information within a reasonable time after
receiving such request.

 

(o)  The Company
shall enter into such customary agreements (including, if requested, an
underwriting agreement in customary form) and take all such other action, if
any, as Holders of 20% in principal amount of the Securities registered under
the Shelf Registration (such Holders being “Significant Holders”) shall
reasonably request in order to facilitate the disposition of the Securities
pursuant to any Shelf Registration.

 

(p)  In the case
of any underwritten offering pursuant to Shelf Registration, the Company shall
(i) make reasonably available for inspection by the Holders of the
Securities, any underwriter participating in any disposition pursuant to the
applicable Shelf Registration Statement and any attorney, accountant or other
agent retained by the Holders of the Securities or any such underwriter all
relevant financial and other records, pertinent corporate documents and
properties of the Company and (ii) cause the Company’s officers,
directors, employees, accountants and auditors to supply all relevant
information reasonably requested by the Holders of the Securities or any such
underwriter, attorney, accountant or agent in connection with the applicable
Shelf Registration Statement, in each case, as shall be reasonably necessary to
enable such persons, to conduct a reasonable investigation within the meaning
of Section 11 of the Securities Act; provided, however, that the foregoing
inspection and information gathering shall be coordinated on behalf of the
Initial Purchasers by you and on behalf of the other parties, by one counsel
designated by and on behalf of such other parties as described in
Section 5 hereof.

 

(q)  In the case
of any underwritten offering pursuant to Shelf Registration, the Company, if
requested by any Significant Holders of Securities covered thereby, shall cause
(i) its counsel to deliver an opinion and updates thereof relating to the
Securities in customary form addressed to such Holders and the Managing
Underwriters (as defined below), if any, thereof and dated, in the case of the
initial opinion, the effective date of such Shelf Registration Statement (it
being agreed that the matters to be covered by such opinion shall include,
without limitation, the due incorporation and good standing of the Company and
its subsidiaries; the qualification of the Company and its subsidiaries to
transact business as foreign corporations; the due authorization, execution and
delivery of the relevant agreement of the type referred to in Section 3(o) hereof;
the due authorization, execution, authentication and issuance, and the validity
and enforceability, of the applicable Securities; the absence of material legal
or governmental proceedings involving the Company and its subsidiaries; the absence
of governmental approvals required to be obtained in connection with the
applicable Shelf Registration Statement, the offering and sale of the
applicable Securities, or any agreement of the type referred to in
Section 3(o) hereof; the compliance as to form of such Shelf
Registration Statement and any documents incorporated by reference therein and
of the Indentures with the requirements of the Securities Act and the Trust
Indenture Act, respectively; and, as of the date of the opinion and as of the effective
date of the applicable Shelf

 

8

 

Registration Statement or most recent post-effective
amendment thereto, as the case may be, the absence from such Shelf Registration
Statement and the prospectus included therein, as then amended or supplemented,
and from any documents incorporated by reference therein of an untrue statement
of a material fact or the omission to state therein a material fact required to
be stated therein or necessary to make the statements therein not misleading
(in the case of any such documents, in the light of the circumstances existing
at the time that such documents were filed with the Commission under the
Exchange Act); (ii) its officers to execute and deliver all customary documents
and certificates and updates thereof requested by any underwriters of the
applicable Securities and (iii) its independent public accountants and the
independent public accountants with respect to any other entity for which
financial information is provided in the Shelf Registration Statement to
provide to the selling Holders of the applicable Securities and any underwriter
therefor a comfort letter in customary form and covering matters of the type
customarily covered in comfort letters in connection with primary underwritten
offerings, subject to receipt of appropriate documentation as contemplated, and
only if permitted, by Statement of Auditing Standards No. 72.

 

(r)  In the case
of the Registered Exchange Offer, if requested by any Initial Purchaser or any
known Participating Broker-Dealer, the Company shall cause (i) its counsel
to deliver to such Initial Purchaser or such Participating Broker-Dealer a
signed opinion in the form set forth in Section 6(c) of the Purchase
Agreement with such changes as are customary in connection with the preparation
of a Registration Statement and (ii) its independent public accountants to
deliver to such Initial Purchaser or such Participating Broker-Dealer a comfort
letter, in customary form, meeting the requirements as to the substance thereof
as set forth in Sections 6(a) and (g) of the Purchase Agreement,
with appropriate date changes.

 

(s)  If a
Registered Exchange Offer or a Private Exchange is to be consummated, upon
delivery of the Initial Securities by Holders to the Company (or to such other
Person as directed by the Company) in exchange for the Exchange Securities or
the Private Exchange Securities, as the case may be, the Company shall mark, or
cause to be marked, on the Initial Securities so exchanged that such Initial
Securities are being canceled in exchange for the Exchange Securities or the
Private Exchange Securities, as the case may be; in no event shall the Initial
Securities be marked as paid or otherwise satisfied.

 

(t)  The Company
will use its reasonable best efforts to (a) if the Initial Securities have
been rated prior to the initial sale of such Initial Securities, confirm such
ratings will apply to the Securities covered by a Registration Statement, or
(b) if the Initial Securities were not previously rated, cause the
Securities covered by a Registration Statement to be rated with the appropriate
rating agencies, if so requested by Holders of a majority in aggregate
principal amount of Securities covered by such Registration Statement, or by
the Managing Underwriters, if any.

 

(u)  In the event
that any broker-dealer registered under the Exchange Act shall underwrite any
Securities or participate as a member of an underwriting syndicate or selling
group or “assist in the distribution” (within the meaning of the Conduct
Rules (the “Rules”) of the
National Association of Securities Dealers, Inc. (“NASD”)) thereof, whether as a Holder of
such Securities or as an underwriter, a placement or sales agent or a broker or
dealer in respect thereof, or otherwise, the Company will assist such
broker-dealer in complying with the requirements of such Rules, including,
without limitation, by (i) if such Rules, including Rule 2720, shall
so require, engaging a “qualified independent underwriter” (as defined in Rule 2720)
to participate in the preparation of the Registration Statement relating to
such Securities, to exercise usual standards of due diligence in respect
thereto and, if any portion of the offering contemplated by such Registration
Statement is an underwritten offering or is made through a placement or sales
agent, to recommend the yield of such Securities, (ii) indemnifying any
such qualified independent underwriter to the extent of the indemnification of
underwriters provided in Section 6 hereof and (iii) providing such
information to such broker-dealer as may be required in order for such
broker-dealer to comply with the requirements of the Rules.

 

(v)  The Company
shall use its reasonable best efforts to take all other steps necessary to
effect the registration of the Securities covered by a Registration Statement
contemplated hereby.

 

9

 

4. 
Market Making. (a)  For so
long as any of the Securities are outstanding and CSFB (in such capacity, the “Market Maker”) or any of its affiliates (as
defined in the rules and regulations of the Commission) owns any equity
securities of the Company or any of its affiliates and proposes to make a
market in the Securities part of its business in the ordinary course, the following
provisions shall apply for the sole benefit of the Market Maker:

 

(i) The Company shall
use its reasonable best efforts to (A) on the date that the applicable
Exchange Offer Registration Statement or, if required hereby, the applicable
Shelf Registration Statement is filed with the Commission, file a registration
statement (the “Market Making Registration
Statement”) (which may be the applicable Exchange Offer Registration
Statement or the applicable Shelf Registration Statement if permitted by the
rules and regulations of the Commission) and cause such Market Making
Registration Statement to be declared effective by the Commission on or prior
to the consummation of the Registered Exchange Offer or the effective date of
the Shelf Registration Statement, as applicable; (B) periodically amend
such Market Making Registration Statement so that the information contained
therein complies with the requirements of Section 10(a) under the
Securities Act; (C) amend the Market Making Registration Statement or amend
or supplement the related prospectus when necessary to reflect any material
changes in the information provided therein; and (D) amend the Market
Making Registration Statement when required to do so in order to comply with
Section 10(a)(3) of the Securities Act; provided, however, that
(1) prior to filing the Market Making Registration Statement, any
amendment thereto or any amendment or supplement to the related prospectus, the
Company will to the extent reasonably practicable furnish to the Market Maker
copies of all such documents proposed to be filed, which documents will be
subject to the review of the Market Maker and its counsel, (2) the Company
will not file the Market Making Registration Statement, any amendment thereto
or any amendment or supplement to the related prospectus to which the Market
Maker and its counsel shall reasonably object unless the Company is advised by
counsel that such Market Making Registration Statement, amendment or supplement
is required to be filed under applicable securities laws and (3) the
Company will provide the Market Maker and its counsel with copies of the Market
Making Registration Statement, the related prospectus and each amendment and
supplement thereto filed.

 

(ii) The Company shall
notify the Market Maker and, if requested by the Market Maker, confirm such
advice in writing, (A) when any Market Making Registration Statement, any
post effective amendment to the Market Making Registration Statement or any
amendment or supplement to the related prospectus has been filed, and, with
respect to any Market Making Registration Statement or any post effective
amendment, when the same has become effective; (B) of any request by the
Commission for any post effective amendment to the Market Making Registration
Statement, any supplement or amendment to the related prospectus or for
additional information; (C) of the issuance by the Commission of any stop
order suspending the effectiveness of the Market Making Registration Statement
or the initiation of any proceedings for that purpose; (D) of the receipt
by the Company of any notification with respect to the suspension of the
qualification of the Securities for sale in any jurisdiction or the initiation
or threatening of any proceedings for such purpose; and (E) of the happening
of any event that makes any statement made in the Market Making Registration
Statement, the related prospectus or any amendment or supplement thereto untrue
or that requires the making of any changes in the Market Making Registration
Statement, such prospectus or any amendment or supplement thereto, in order to
make the statements therein, in light of the circumstances under which they
were made, not misleading.

 

(iii) If any event
contemplated by Section 4(a)(ii)(B) through (E) occurs during
the period for which the Company is required to maintain an effective Market
Making Registration Statement, the Company shall use its reasonable best
efforts to promptly prepare and file with the Commission a post-effective
amendment to the Market Making Registration Statement or an amendment or
supplement to the related prospectus or file any other required document so
that the prospectus will not include an untrue statement of a material fact or
omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading.

 

10

 

(iv) In the event of
the issuance of any stop order suspending the effectiveness of the Market
Making Registration Statement or of any order suspending the qualification of
the Securities for sale in any jurisdiction, the Company shall promptly use its
reasonable best efforts to obtain its withdrawal.

 

(v) The Company shall
furnish to the Market Maker, without charge, (i) at least one conformed
copy of the Market Making Registration Statement and any post effective
amendment thereto; and (ii) as many copies of the related prospectus and
any amendment or supplement thereto as the Market Maker may reasonably request.

 

(vi) The Company shall
consent to the use of the prospectus contained in the Market Making
Registration Statement or any amendment or supplement thereto by the Market
Maker in connection with its market making activities.

 

(vii) Notwithstanding
the foregoing provisions of this Section 4, the Company may, if it
determines reasonably and in good faith that the continuing effectiveness of
the Market Making Registration Statement would require the disclosure of
non-public material information that, in the reasonable judgment of the Board
of Directors of the Company, would be detrimental to the Company if so
disclosed or would otherwise materially adversely affect a financing,
acquisition, disposition, merger or other material transaction or such action
is required by applicable law, notify the Market Maker in writing that the
Market Making Registration Statement is no longer effective or the prospectus
included therein is no longer usable for offers and sales of Securities;
provided that the use of the Market Making Registration Statement or the
prospectus contained therein shall not be suspended for more than 60
consecutive days with no more than three such suspensions during any calendar
year. The Market Maker agrees that upon receipt of any notice from the Company
pursuant to this Section 4(a)(vii), it will discontinue use of the
prospectus contained in the Market Making Registration Statement until receipt
of copies of the supplemented or amended prospectus relating thereto or until
advised in writing by the Company that the use of the prospectus contained in
the Market Making Registration Statement may be resumed.

 

(b) In
connection with the applicable Market Making Registration Statement, the
Company shall (i) make reasonably available for inspection by a
representative of, and counsel acting for, the Market Maker all relevant
financial and other records, pertinent corporate documents and properties of
the Company and its subsidiaries and (ii) use its reasonable best efforts
to have its officers, directors, employees, accountants and counsel supply all
relevant information reasonably requested by such representative or counsel or
the Market Maker.

 

(c) 
Prior to the effective date of the applicable Market Making Registration
Statement, the Company shall use its reasonable best efforts to register or
qualify the Securities for offer and sale under the securities or blue sky laws
of such jurisdictions as the Market Maker reasonably requests in writing and do
any and all other acts or things necessary or advisable to enable the offer and
sale in such jurisdictions of the Securities covered by such Market Making
Registration Statement; provided that the Company shall not be required to
(i) qualify as a foreign corporation or other entity or as a dealer in
securities in any jurisdiction where it would not otherwise be required to so
qualify, (ii) file any general consent to subject itself to service of
process in any such jurisdictions or (iii) subject itself to taxation in
any such jurisdiction where it is not then so subject.

 

(d) 
The Company represents and agrees that each Market Making Registration
Statement, any post effective amendments thereto, any amendments or supplements
to the related prospectus and any documents filed by them under the Exchange
Act will, when they become effective or are filed with the Commission, as the
case may be, conform in all respects to the requirements of the Securities Act
and the Exchange Act and the rules and regulations of the Commission
thereunder and will not, as of the effective date of such Market Making
Registration Statement or post effective amendments and as of the filing date
of amendments or supplements to such prospectus or filings under the Exchange
Act, contain an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading;
provided that no representation or warranty is made as to information contained
in or omitted from the applicable Market

 

11

 

Making
Registration Statement or the related prospectus in reliance upon and in
conformity with written information furnished to the Company by the Market
Maker specifically for inclusion therein, which information the parties hereto
agree will be limited to the statements concerning the market making activities
of the Market Maker to be set forth on the cover page, in the “Plan of
Distribution” and in the analogous sections of the Canadian wrapper, if any, of
the prospectus (the “Market Maker’s
Information”).

 

(e) 
At the time of effectiveness of the applicable Market Making Registration
Statement and concurrently with each time such Market Making Registration
Statement or the related prospectus shall be amended or such prospectus shall
be supplemented, the Company shall (if requested by the Market Maker) furnish
the Market Maker and its counsel with a certificate of its Chief Executive
Officer or any Vice President and a principal financial and accounting officer
to the effect that:

 

(i) such Market Making
Registration Statement has been declared effective; (ii) in the case of an
amendment to such Market Making Registration Statement, such amendment has
become effective under the Securities Act as of the date and time specified in
such certificate, if applicable; and in the case of an amendment or supplement
to the prospectus, such amendment or supplement to the prospectus was filed
with the Commission pursuant to the subparagraph of Rule 424(b) under
the Securities Act specified in such certificate on the date specified therein;
(iii) to the knowledge of such officers, no stop order suspending the
effectiveness of the Market Making Registration Statement has been issued and
no proceeding for that purpose is pending or threatened by the Commission; and
(iv) such officers have carefully examined the Market Making Registration
Statement and the prospectus (and, in the case of an amendment or supplement,
such amendment or supplement) and as of the date of such Market Making
Registration Statement, prospectus, amendment or supplement, as applicable, the
Market Making Registration Statement and the prospectus, as amended or
supplemented, if applicable, did not include any untrue statement of a material
fact and did not omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading.

 

(f) 
At the time of effectiveness of the applicable Market Making Registration
Statement, the Company shall (if requested by the Market Maker) furnish the
Market Maker and its counsel with the written opinion of counsel for the
Company reasonably satisfactory to the Market Maker to the effect that:

 

(i)  such Market Making
Registration Statement has been declared effective; (ii) in the case of an
amendment to such Market Making Registration Statement, such amendment has
become effective under the Securities Act as of the date and time specified in
such opinion, if applicable; and in the case of an amendment or supplement to
the prospectus, such amendment or supplement to the prospectus was filed with
the Commission pursuant to the subparagraph of Rule 424(b) under the
Securities Act specified in such opinion on the date specified therein;
(iii) to the knowledge of such counsel, no stop order suspending the
effectiveness of such Market Making Registration Statement has been issued and
no proceeding for that purpose is pending or threatened by the Commission; and
(iv) such counsel has reviewed such Market Making Registration Statement
and the prospectus (and, in the case of an amendment or supplement, such
amendment or supplement) and has no reason to believe that (except for the
financial statements and other financial and statistical data contained therein
as to which such counsel need express no belief) as of the date of such Market
Making Registration Statement, prospectus, amendment or supplement, as
applicable, such Market Making Registration Statement and the prospectus, as
amended or supplemented, if applicable, contained any untrue statement of a
material fact or omitted to state a material fact required to be stated therein
or necessary to make the statements therein not misleading.

 

(g) 
At the time of effectiveness of the applicable Market Making Registration
Statement, the Company shall (if requested by the Market Maker) furnish the
Market Maker and its counsel with a letter of Deloitte & Touche LLP
(or other independent public accountants for the Company of nationally
recognized standing) in form satisfactory to the Market Maker, addressed to the
Market Maker and dated the date of delivery of such letter, (i) confirming
that they are independent public accountants within the meaning of the
Securities Act and are in compliance with the applicable requirements relating
to the qualification of

 

12

 

accountants
under Rule 2-01 of Regulation S-X of the Commission and (ii) in all
other respects, substantially in the form of the letter delivered to the
Initial Purchasers pursuant to Sections 6(a) and 6(g) of the Purchase
Agreement.

 

(h) 
The Company, on the one hand, and the Market Maker, on the other hand, hereby
agree to indemnify each other, and, if applicable, contribute to the other, in
accordance with Section 6 of this Agreement.

 

(i) 
The Company will comply with the provisions of this Section 4 at its own
expense and will reimburse the Market Maker for its expenses associated with
this Section 4 (including reasonable fees of counsel for the Market
Maker).

 

(j) 
The agreements contained in this Section 4 and the representations,
warranties and agreements contained in this Agreement shall survive all offers
and sales of the Securities and shall remain in full force and effect,
regardless of any termination or cancellation of this Agreement or any
investigation made by or on behalf of any indemnified party.

 

(k) 
For purposes of this Section 4, (i) any reference to the terms “amend”,
“amendment” or “supplement” with respect to the applicable Market Making
Registration Statement or the prospectus contained therein shall be deemed to
refer to and include the filing under the Exchange Act of any document deemed
to be incorporated therein by reference and (ii) any reference to the term
“Securities” shall be deemed to refer to and include any securities issued in
exchange for or with respect to such Securities.

 

5.  Registration Expenses.  The Company
shall bear all fees and expenses incurred in connection with the performance of
its obligations under Sections 1 through 4 hereof (including the reasonable
fees and expenses, if any, of Cravath, Swaine & Moore LLP, counsel for
the Initial Purchasers, incurred in connection with the Registered Exchange
Offer), whether or not the applicable Exchange Offer Registration Statement or
a Shelf Registration is filed or becomes effective, and, in the event of a
Shelf Registration, shall bear or reimburse the Holders of the Securities
covered thereby for the reasonable fees and disbursements of one firm of
counsel designated by the Holders of a majority in principal amount of the
Initial Securities covered thereby to act as counsel for the Holders of the
Initial Securities in connection therewith.

 

6.  Indemnification.  (a)  The
Company agrees to indemnify and hold harmless (x) each Holder of the
Securities (including the Market Maker), any Participating Broker-Dealer and
each person, if any, who controls such Holder (including the Market Maker) or
such Participating Broker-Dealer within the meaning of the Securities Act or
the Exchange Act (each Holder, any Participating Broker-Dealer and such
controlling persons are referred to collectively as the “Indemnified Parties”) from and against any
losses, claims, damages or liabilities, joint or several, or any actions in
respect thereof (including, but not limited to, any losses, claims, damages,
liabilities or actions relating to purchases and sales of the Securities) to which
each Indemnified Party may become subject under the Securities Act, the
Exchange Act or otherwise, insofar as such losses, claims, damages, liabilities
or actions arise out of or are based upon any untrue statement or alleged
untrue statement of a material fact contained in a Registration Statement or
prospectus or in any amendment or supplement thereto or in any preliminary
prospectus relating to a Shelf Registration, or arise out of, or are based
upon, the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading, and shall reimburse, as incurred, the Indemnified Parties for any
legal or other expenses reasonably incurred by them in connection with investigating
or defending any such loss, claim, damage, liability or action in respect
thereof; provided, however, that (i) the Company shall not be liable in
any such case to the extent that such loss, claim, damage or liability arises
out of or is based upon any untrue statement or alleged untrue statement or
omission or alleged omission made in a Registration Statement or prospectus or
in any amendment or supplement thereto or in any preliminary prospectus
relating to a Shelf Registration in reliance upon and in conformity with
written information pertaining to such Holder or Market Maker, respectively,
and furnished to the Company by or on behalf of such Holder or Market Maker,
respectively, specifically for inclusion therein and (ii) with respect to
any untrue statement or omission or alleged untrue statement or omission made
in any preliminary prospectus relating to a Shelf Registration Statement, the

 

13

 

indemnity
agreement contained in this subsection (a) shall not inure to the
benefit of any Holder or Participating Broker-Dealer from whom the person
asserting any such losses, claims, damages or liabilities purchased the
Securities concerned, to the extent that a prospectus relating to such
Securities was required to be delivered by such Holder or Participating
Broker-Dealer under the Securities Act in connection with such purchase and any
such loss, claim, damage or liability of such Holder or Participating
Broker-Dealer results from the fact that there was not sent or given to such
person, at or prior to the written confirmation of the sale of such Securities
to such person, a copy of the final prospectus if the Company had previously
furnished copies thereof to such Holder or Participating Broker-Dealer; and (y) the
Market Maker from and against any and all losses, claims, damages and
liabilities (including, without limitation, legal fees and other expenses
reasonably incurred in connection with any suit, action or proceeding or any
claim asserted, as such fees and expenses are incurred), that arise out of, or
are based upon, any breach of the Company of its representations, warranties
and agreements contained in Section 4 of this Agreement; provided further,
however, that this indemnity agreement will be in addition to any liability
which the Company may otherwise have to such Indemnified Party.  The
Company shall also indemnify underwriters, their officers and directors and
each person who controls such underwriters within the meaning of the Securities
Act or the Exchange Act to the same extent as provided above with respect to
the indemnification of the Holders of the Securities if requested by such
Holders.

 

(b)  Each
Holder of the Securities (including the Market Maker), severally and not
jointly, will indemnify and hold harmless the Company and each person, if any,
who controls the Company within the meaning of the Securities Act or the
Exchange Act from and against any losses, claims, damages or liabilities or any
actions in respect thereof, to which the Company or any such controlling person
may become subject under the Securities Act, the Exchange Act or otherwise,
insofar as such losses, claims, damages, liabilities or actions arise out of or
are based upon any untrue statement or alleged untrue statement of a material
fact contained in a Registration Statement or prospectus or in any amendment or
supplement thereto or in any preliminary prospectus relating to a Shelf
Registration, or arise out of or are based upon the omission or alleged
omission to state therein a material fact necessary to make the statements
therein not misleading, but in each case only to the extent that the untrue
statement or omission or alleged untrue statement or omission was made in
reliance upon and in conformity with written information pertaining to such
Holder or Market Maker Information, respectively, and furnished to the Company
by or on behalf of such Holder or Market Maker, as the case may be,
specifically for inclusion therein; and, subject to the limitation set forth
immediately preceding this clause, shall reimburse, as incurred, the Company
for any legal or other expenses reasonably incurred by the Company or any such
controlling person in connection with investigating or defending any loss,
claim, damage, liability or action in respect thereof.  This indemnity
agreement will be in addition to any liability which such Holder may otherwise
have to the Company or any of its controlling persons.

 

(c)  Promptly
after receipt by an indemnified party under this Section 6 of notice of
the commencement of any action or proceeding (including a governmental
investigation), such indemnified party will, if a claim in respect thereof is
to be made against the indemnifying party under this Section 6, notify the
indemnifying party in writing of the commencement thereof; but the failure to
notify the indemnifying party shall not relieve the indemnifying party from any
liability that it may have under subsection (a) or (b) above
except to the extent that it has been materially prejudiced (through the
forfeiture of substantive rights or defenses) by such failure; and provided
further that the failure to notify the indemnifying party shall not relieve it
from any liability that it may have to an indemnified party otherwise than
under subsection (a) or (b) above.  In case any such action
is brought against any indemnified party, and it notifies the indemnifying
party of the commencement thereof, the indemnifying party will be entitled to
participate therein and, to the extent that it may wish, jointly with any other
indemnifying party similarly notified, to assume the defense thereof, with
counsel reasonably satisfactory to such indemnified party (who shall not,
except with the consent of the indemnified party, be counsel to the
indemnifying party), and after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof the
indemnifying party will not be liable to such indemnified party under this
Section 6 for any legal or other expenses, other than reasonable costs of
investigation, subsequently incurred by such indemnified party in connection
with the defense thereof.  In any such proceeding, any indemnified party shall
have the right to retain its own counsel, but the fees and expenses of such
counsel shall be at the expense of such indemnified party unless (i) the
indemnifying party and the indemnified party shall have mutually agreed to the
contrary; (ii) the indemnifying party has failed within a reasonable time
to retain counsel reasonably

 

14

 

satisfactory
to the indemnified party; (iii) the indemnified party shall have
reasonably concluded that there may be legal defenses available to it that are
different from or in addition to those available to the indemnifying party; or
(iv) the named parties in any such proceeding (including any impleaded
parties) include both the indemnifying party and the indemnified party and
representation of both parties by the same counsel would be inappropriate due
to actual or potential differing interests between them.  It is understood
and agreed that the indemnifying party shall not, in connection with any
proceeding or related proceeding in the same jurisdiction, be liable for the
fees and expenses of more than one separate firm (in addition to any local
counsel) for all indemnified parties, and that all such fees and expenses shall
be reimbursed as they are incurred.  Any such separate firm for any
Initial Purchaser, its affiliates, directors and officers and any control
persons of such Initial Purchaser shall be designated in writing by CSFB and
any such separate firm for the Company, and any control persons of the Company
shall be designated in writing by the Company.  Any such separate firm for
the Market—Maker shall be designated in writing by the Market—Maker.  No indemnifying party shall, without
the prior written consent of the indemnified party, effect any settlement of
any pending or threatened action in respect of which any indemnified party is
or could have been a party and indemnity could have been sought hereunder by
such indemnified party unless such settlement (i) includes an
unconditional release of such indemnified party from all liability on any
claims that are the subject matter of such action, and (ii) does not
include a statement as to or an admission of fault, culpability or a failure to
act by or on behalf of any indemnified party.

 

(d)  If
the indemnification provided for in this Section 6 is unavailable or
insufficient to hold harmless an indemnified party under subsections
(a) or (b) above, then each indemnifying party shall contribute to
the amount paid or payable by such indemnified party as a result of the losses,
claims, damages or liabilities (or actions in respect thereof) referred to in
subsection (a) or (b) above (i) in such proportion as is
appropriate to reflect the relative benefits received by the indemnifying party
or parties on the one hand and the indemnified party on the other from the
exchange of the Securities, pursuant to the Registered Exchange Offer, or
(ii) if the allocation provided by the foregoing clause (i) is not
permitted by applicable law, in such proportion as is appropriate to reflect
not only the relative benefits referred to in clause (i) above but also
the relative fault of the indemnifying party or parties on the one hand and the
indemnified party on the other in connection with the statements or omissions
that resulted in such losses, claims, damages or liabilities (or actions in
respect thereof) as well as any other relevant equitable considerations. 
The relative fault of the parties shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact
or the omission or alleged omission to state a material fact relates to
information supplied by the Company on the one hand or such Holder or such
other indemnified party or the Market Maker Information, as the case may be, on
the other, and the parties’ relative intent, knowledge, access to information
and opportunity to correct or prevent such statement or omission.  The
amount paid by an indemnified party as a result of the losses, claims, damages
or liabilities referred to in the first sentence of this
subsection (d) shall be deemed to include any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating
or defending any action or claim which is the subject of this
subsection (d).  Notwithstanding any other provision of this
Section 6(d), the Holders of the Securities (including the Market Maker)
shall not be required to contribute any amount in excess of the amount by which
the net proceeds received by such Holders from the sale of the Securities
pursuant to a Registration Statement exceeds the amount of damages which such
Holders (or the Market Maker) have otherwise been required to pay by reason of
such untrue or alleged untrue statement or omission or alleged omission, nor
shall such Market Maker be required to contribute any amount of its commission
from the market making transactions at issue.  No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any person who was
not guilty of such fraudulent misrepresentation.  For purposes of this
paragraph (d), each person, if any, who controls such indemnified party within
the meaning of the Securities Act or the Exchange Act shall have the same
rights to contribution as such indemnified party and each person, if any, who
controls the Company within the meaning of the Securities Act or the Exchange
Act shall have the same rights to contribution as the Company.

 

(e)  The
agreements contained in this Section 6 shall survive the sale of the
Securities pursuant to a Registration Statement and shall remain in full force
and effect, regardless of any termination or cancellation of this Agreement or
any investigation made by or on behalf of any indemnified party.

 

15

 

7.  Additional Interest Under Certain Circumstances. 
(a)  Additional interest (the “Additional
Interest”) with respect to the Initial Securities of a given series
shall be assessed as follows if any of the following events occur in respect of
such series (each such event in clauses (i) through (iii) below
a “Registration Default”):

 

(i)  any Shelf
Registration Statement (other than a Market Making Registration Statement)
required by this Agreement is not declared effective by the Commission on or
prior to the applicable Effectiveness Deadline;

 

(ii)  the Registered
Exchange Offer has not been consummated on or prior to the Consummation
Deadline; or

 

(iii)  any Registration
Statement (other than a Market Making Registration Statement) required by this
agreement has been declared effective and (A) such Registration Statement
thereafter ceases to be effective; or (B) such Registration Statement or
the related prospectus ceases to be usable in connection with resales of
Transfer Restricted Securities during the periods specified herein because
either (1) any event occurs as a result of which the related prospectus
forming part of such Registration Statement would include any untrue statement
of a material fact or omit to state any material fact necessary to make the
statements therein in the light of the circumstances under which they were made
not misleading, or (2) it shall be necessary to amend such Registration
Statement or supplement the related prospectus, to comply with the Securities
Act or the Exchange Act or the respective rules thereunder.

 

Except
during any Shelf Suspension Period referred to in Section 2(c), Additional
Interest shall accrue on the Initial Securities of the relevant series over and
above the interest set forth in the title of the Securities of that series from
and including the date on which any such Registration Default shall occur, at a
rate of 0.25% per annum for the first 90-day period immediately following the
occurrence of such Registration Default, and such rate will increase by an
additional 0.25% per annum with respect to each subsequent 90-day period until
all Registration Defaults in respect of that series have been cured, up to a
maximum Additional Interest rate of 1.0% per annum.

 

(b)  A
Registration Default referred to in Section 7(a)(iii)(B) hereof shall
be deemed not to have occurred and be continuing in relation to a Shelf
Registration Statement or the related prospectus if (i) such Registration
Default has occurred solely as a result of (x) the filing of a
post-effective amendment to such Shelf Registration Statement to incorporate
annual audited financial information with respect to the Company where such
post-effective amendment is not yet effective and needs to be declared
effective to permit Holders to use the related prospectus or (y) other
material events with respect to the Company that would need to be described in
such Shelf Registration Statement or the related prospectus and (ii) in
the case of clause (y), the Company is proceeding promptly and in good faith to
amend or supplement such Shelf Registration Statement and related prospectus to
describe such events.  Upon the cure of all Registration Defaults in
respect of a given series of Securities, additional interest shall cease to
accrue in respect of that series of Initial Securities.

 

(c)  Any
amounts of Additional Interest due pursuant to Section 7(a) above
will be payable (a) with regard to the Senior Notes in the form elected by
the Company for payment or interest pursuant to the terms of the Indenture
governing the Senior Notes and (b) with regard to the Senior Subordinated
Notes in cash on the regular interest payment dates with respect to the Initial
Securities. The amount of Additional Interest will be determined by multiplying
the applicable Additional Interest rate by the principal amount of the Initial
Securities of the relevant series, multiplied by a fraction, the numerator of
which is the number of days such Additional Interest rate was applicable during
such period (determined on the basis of a 360-day year comprised of twelve 30-day
months), and the denominator of which is 360.

 

(d) “Transfer Restricted Securities” means each
Security of a given series until (i) the date on which such Transfer
Restricted Security has been exchanged by a person other than a broker-dealer
for a freely transferable Exchange Security of the same series in the
Registered Exchange Offer with respect to such series, (ii) following the
exchange by a broker-dealer in the Registered Exchange Offer with respect to
such series of an Initial Security for an Exchange Security, the date on which
such Exchange Security is

 

16

 

sold
to a purchaser who receives from such broker-dealer on or prior to the date of
such sale a copy of the prospectus contained in the Exchange Offer Registration
Statement with respect to such series, (iii) the date on which such
Initial Security has been effectively registered under the Securities Act and
disposed of in accordance with the Shelf Registration Statement or (iv) the
date on which such Initial Securities is distributed to the public pursuant to
Rule 144 under the Securities Act or is saleable pursuant to Rule 144(k) under
the Securities Act.

 

(e) 
Notwithstanding any other provisions of this Section 7, the Company shall
not be obligated to pay Additional Interest provided in
Section 7(a)(ii) during a Shelf Suspension Period permitted by
Section 2 hereof.

 

8.  Rules 144 and 144A.  The
Company shall use its reasonable best efforts to file the reports required to
be filed by it under the Securities Act and the Exchange Act in a timely manner
and, if at any time the Company is not required to file such reports, it will,
upon the request of any Holder of Initial Securities or the Market Maker, make
publicly available other information so long as necessary to permit sales of
their securities pursuant to Rules 144 and 144A.  The Company
covenants that it will take such further action as any Holder of Initial
Securities or the Market Maker may reasonably request, all to the extent
required from time to time to enable such Holder or the Market Maker to sell
Initial Securities without registration under the Securities Act within the
limitation of the exemptions provided by Rules 144 and 144A (including the
requirements of Rule 144A(d)(4)).  The Company will provide a copy of
this Agreement to prospective purchasers of Initial Securities identified to
the Company by the Initial Purchasers upon request.  Upon the request of
any Holder of Initial Securities or the Market Maker, the Company shall deliver
to such Holder or the Market Maker a written statement as to whether it has
complied with such requirements. Notwithstanding the foregoing, nothing in this
Section 8 shall be deemed to require the Company to register any of its
securities pursuant to the Exchange Act.

 

9.  Underwritten Registrations.  If
any of the Transfer Restricted Securities covered by any Shelf Registration are
to be sold in an underwritten offering, the investment banker or investment
bankers and manager or managers that will administer the offering (“Managing Underwriters”) will be selected by
the Holders of a majority in aggregate principal amount of such Transfer
Restricted Securities to be included in such offering.

 

No
person may participate in any underwritten registration hereunder unless such
person (i) agrees to sell such person’s Transfer Restricted Securities on
the basis reasonably provided in any underwriting arrangements approved by the
persons entitled hereunder to approve such arrangements and (ii) completes
and executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents reasonably required under the terms of such
underwriting arrangements.

 

10.  Miscellaneous.

 

(a)  Amendments and Waivers.  The
provisions of this Agreement may not be amended, modified or supplemented, and
waivers or consents to departures from the provisions hereof may not be given,
except by the Company and the written consent of the Holders of a majority in
principal amount of the Securities affected by such amendment, modification,
supplement, waiver or consents.  The provisions of Section 4 may not
be amended, modified or supplemented without prior written consent of the
Market Maker.

 

(b)  Notices.  All notices and other
communications provided for or permitted hereunder shall be made in writing by
hand delivery, first-class mail, facsimile transmission, or air courier which
guarantees overnight delivery:

 

	
   

  	
  (1)

  	
  if
  to a Holder of the Securities, at the most current address given by such
  Holder to the Company.

  
	
   

  	
   

  	
   

  
	
   

  	
  (2)

  	
  if
  to the Initial Purchasers:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Credit
  Suisse First Boston LLC

  
	
   

  	
   

  	
  Eleven
  Madison Avenue

  
	
   

  	
   

  	
  New
  York, NY 10010-3629

  

 

17

 

	
   

  	
   

  	
  Fax
  No.: (212) 325-4296

  
	
   

  	
   

  	
  Attention:
  Transactions Advisory Group

  
	
   

  	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Cravath,
  Swaine & Moore LLP

  
	
   

  	
   

  	
  825 Eighth
  Avenue

  
	
   

  	
   

  	
  Worldwide
  Plaza

  
	
   

  	
   

  	
  New
  York, NY 10019-7475

  
	
   

  	
   

  	
  Fax
  No.: (212) 474-3700

  
	
   

  	
   

  	
  Attention:
  George A. Stephanakis

  
	
   

  	
   

  	
   

  
	
   

  	
  (3)

  	
  if
  to the Company, at its address as follows:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The
  Neiman Marcus Group, Inc.

  
	
   

  	
   

  	
  One
  Marcus Square

  
	
   

  	
   

  	
  1618
  Main Street

  
	
   

  	
   

  	
  Dallas,
  Texas 75201

  
	
   

  	
   

  	
  Fax
  No.: (214) 743 7611

  
	
   

  	
   

  	
  Attention:
  General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
  with
  a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Cleary
  Gottlieb Steen & Hamilton LLP

  
	
   

  	
   

  	
  One
  Liberty Plaza

  
	
   

  	
   

  	
  New
  York, NY 10006

  
	
   

  	
   

  	
  Fax
  No.: (212) 225-3999

  
	
   

  	
   

  	
  Attention:
  Robert P. Davis

  
	
   

  	
   

  	
   

  
	
   

  	
  (4)

  	
  if
  to CSFB as Market Marker:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Credit
  Suisse First Boston LLC

  
	
   

  	
   

  	
  Eleven
  Madison Avenue

  
	
   

  	
   

  	
  New
  York, NY 10010-3629

  
	
   

  	
   

  	
  Fax
  No.: (212) 325-4296

  
	
   

  	
   

  	
  Attention:
  Transactions Advisory Group

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Cravath,
  Swaine & Moore LLP

  
	
   

  	
   

  	
  825 Eighth
  Avenue

  
	
   

  	
   

  	
  Worldwide
  Plaza

  
	
   

  	
   

  	
  New
  York, NY 10019-7475

  
	
   

  	
   

  	
  Fax
  No.: (212) 474-3700

  
	
   

  	
   

  	
  Attention:
  George A. Stephanakis

  

 

All
such notices and communications shall be deemed to have been duly given: 
at the time delivered by hand, if personally delivered; three business days
after being deposited in the mail, postage prepaid, if mailed; when receipt is
acknowledged by recipient’s facsimile machine operator, if sent by facsimile
transmission; and on the day delivered, if sent by overnight air courier
guaranteeing next day delivery.

 

(c)  No Inconsistent Agreements.  The
Company has not, as of the date hereof, entered into, nor shall it, on or after
the date hereof, enter into, any agreement with respect to its securities that
is inconsistent with the rights granted to the Holders herein or otherwise
conflicts with the provisions hereof.

 

(d)  Successors and Assigns.  This
Agreement shall be binding upon the Company and its successors and assigns.

 

18

 

(e)  Counterparts.  This Agreement
may be executed in any number of counterparts and by the parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
agreement.

 

(f)  Headings.  The headings in this
Agreement are for convenience of reference only and shall not limit or
otherwise affect the meaning hereof.

 

(g)  Governing Law.  THIS AGREEMENT
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS.

 

(h)  Severability.  If any one or
more of the provisions contained herein, or the application thereof in any circumstance,
is held invalid, illegal or unenforceable, the validity, legality and
enforceability of any such provision in every other respect and of the
remaining provisions contained herein shall not be affected or impaired
thereby.

 

(i)  Securities Held by the Company.  Whenever
the consent or approval of Holders of a specified percentage of principal
amount of Securities is required hereunder, Securities held by the Company or
its affiliates (other than subsequent Holders of Securities if such subsequent
Holders are deemed to be affiliates solely by reason of their holdings of such
Securities) shall not be counted in determining whether such consent or
approval was given by the Holders of such required percentage.

 

(j) 
Submission to Jurisdiction; Waiver of
Immunities.  Each of the parties hereto hereby submits to the
non-exclusive jurisdiction of the Federal and state courts in the Borough of
Manhattan in The City of New York in any suit or proceeding arising out of or
relating to this Agreement or the transactions contemplated hereby. To the
extent that any such party may acquire any immunity from jurisdiction of any
court or from any legal process (whether through service of notice, attachment
prior to judgment, attachment in aid of execution, execution or otherwise) with
respect to itself or its property, it hereby irrevocably waives such immunity
in respect of this Agreement, to the fullest extent permitted by law.

 

19

 

If
the foregoing is in accordance with your understanding of our agreement, please
sign and return to the Company a counterpart hereof, whereupon this instrument,
along with all counterparts, will become a binding agreement among the several
Initial Purchasers and the Issuer and the Guarantors in accordance with its
terms.

 

 

	
   

  	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NEWTON
  ACQUISITION MERGER SUB, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By

  	
  /s/
  Kewsong Lee

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
  Kewsong
  Lee

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
  Senior
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NEWTON
  ACQUISITION, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By

  	
  /s/
  Nelson A. Bangs

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
  Nelson
  A. Bangs

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
  Senior
  Vice President and General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NEIMAN
  MARCUS SPECIAL EVENTS, INC.

  
	
   

  	
   

  	
  NM
  FINANCIAL SERVICES, INC.

  
	
   

  	
   

  	
  NM
  KITCHENS, INC.

  
	
   

  	
   

  	
  BERGDORFGOODMAN.COM,
  LLC

  
	
   

  	
   

  	
  BERGDORF
  GOODMAN, INC.

  
	
   

  	
   

  	
  BERGDORF
  GRAPHICS, INC.

  
	
   

  	
   

  	
  NEIMAN
  MARCUS HOLDINGS, INC.

  
	
   

  	
   

  	
  NEMA
  BEVERAGE CORPORATION

  
	
   

  	
   

  	
  NEMA
  BEVERAGE HOLDING CORPORATION

  
	
   

  	
   

  	
  NEMA
  BEVERAGE PARENT CORPORATION

  
	
   

  	
   

  	
  WORTH
  AVENUE LEASING COMPANY

  
	
   

  	
   

  	
  NMGP,
  LLC

  
	
   

  	
   

  	
  NM
  NEVADA TRUST

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By

  	
  /s/
  Nelson A. Bangs

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
  Nelson
  A. Bangs

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
  Vice
  President

  

 

20

 

	
  The
  undersigned hereby acknowledges and agrees

  that, upon the effectiveness of the Merger (as

  defined in the Purchase Agreement) it will succeed

  by operation of law to all of the rights and obligations

  of the Company set forth herein and that all references

  herein and that all references hereinto the “Company”

  shall thereupon be deemed to be references to the

  undersigned.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  BY
  THE NEIMAN MARCUS GROUP, INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  
	
   

  	
  /s/
  Nelson A. Bangs

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Nelson A. Bangs

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Assistant Secretary

  	
   

  	
   

  

 

21

 

	
  The
  foregoing Registration Rights

  Agreement is hereby confirmed

  and accepted as of the date

  first above written.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CREDIT
  SUISSE FIRST BOSTON LLC

  DEUTSCHE BANK SECURITIES INC.

  BANC OF AMERICA SECURITIES LLC

  GOLDMAN, SACHS & CO.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  BY
  CREDIT SUISSE FIRST BOSTON LLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  
	
   

  	
  /s/
  Edward Neuberg

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Edward Neuberg

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Director

  	
   

  	
   

  

 

22

 

ANNEX A

 

Each
broker-dealer that receives Exchange Securities for its own account pursuant to
the Exchange Offer must acknowledge that it will deliver a prospectus in
connection with any resale of such Exchange Securities.  The Letter of
Transmittal states that by so acknowledging and by delivering a prospectus, a
broker-dealer will not be deemed to admit that it is an “underwriter” within
the meaning of the Securities Act.  This Prospectus, as it may be amended
or supplemented from time to time, may be used by a broker-dealer in connection
with resales of Exchange Securities received in exchange for Initial Securities
where such Initial Securities were acquired by such broker-dealer as a result
of market-making activities or other trading activities.  The Company has
agreed that, for a period of 180 days after the Expiration Date (as defined
herein), it will make this Prospectus available to any broker-dealer for use in
connection with any such resale.  See “Plan of Distribution.”

 

 

ANNEX B

 

Each
broker-dealer that receives Exchange Securities for its own account in exchange
for Initial Securities, where such Initial Securities were acquired by such
broker-dealer as a result of market-making activities or other trading
activities, must acknowledge that it will deliver a prospectus in connection
with any resale of such Exchange Securities.  See “Plan of Distribution.”

 

 

ANNEX C

 

PLAN OF DISTRIBUTION

 

Each
broker-dealer that receives Exchange Securities for its own account pursuant to
the Exchange Offer must acknowledge that it will deliver a prospectus in
connection with any resale of such Exchange Securities.  This Prospectus,
as it may be amended or supplemented from time to time, may be used by a broker-dealer
in connection with resales of Exchange Securities received in exchange for
Initial Securities where such Initial Securities were acquired as a result of
market-making activities or other trading activities.  The Company has
agreed that, for a period of 180 days after the Expiration Date, it will make
this prospectus, as amended or supplemented, available to any broker-dealer for
use in connection with any such resale.  In addition,
until                  
, 200[·], all dealers
effecting transactions in the Exchange Securities may be required to deliver a
prospectus.(1)

 

The
Company will not receive any proceeds from any sale of Exchange Securities by
broker-dealers.  Exchange Securities received by broker-dealers for their
own account pursuant to the Exchange Offer may be sold from time to time in one
or more transactions in the over-the-counter market, in negotiated
transactions, through the writing of options on the Exchange Securities or a
combination of such methods of resale, at market prices prevailing at the time
of resale, at prices related to such prevailing market prices or at negotiated
prices.  Any such resale may be made directly to purchasers or to or
through brokers or dealers who may receive compensation in the form of commissions
or concessions from any such broker-dealer or the purchasers of any such
Exchange Securities.  Any broker-dealer that resells Exchange Securities
that were received by it for its own account pursuant to the Exchange Offer and
any broker or dealer that participates in a distribution of such Exchange
Securities may be deemed to be an “underwriter” within the meaning of the
Securities Act and any profit on any such resale of Exchange Securities and any
commission or concessions received by any such persons may be deemed to be
underwriting compensation under the Securities Act.  The Letter of
Transmittal states that, by acknowledging that it will deliver and by
delivering a prospectus, a broker-dealer will not be deemed to admit that it is
an “underwriter” within the meaning of the Securities Act.

 

For
a period of 180 days after the Expiration Date the Company will promptly send
additional copies of this Prospectus and any amendment or supplement to this
Prospectus to any broker-dealer that requests such documents in the Letter of
Transmittal.  The Company has agreed to pay all expenses incident to the
Exchange Offer (including the expenses of one counsel for the Holders of the
Securities) other than commissions or concessions of any brokers or dealers and
will indemnify the Holders of the Securities (including any broker-dealers)
against certain liabilities, including liabilities under the Securities Act.

 

(1)  In addition, the legend required by Item
502(e) of Regulation S-K will appear on the back cover page of the
Exchange Offer prospectus.

 

 

ANNEX D

 

o            CHECK HERE IF YOU ARE A
BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL COPIES OF THE PROSPECTUS AND 10
COPIES OF ANY AMENDMENTS OR SUPPLEMENTS THERETO.

 

	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

If
the undersigned is not a broker-dealer, the undersigned represents that it is
not engaged in, and does not intend to engage in, a distribution of Exchange
Securities.  If the undersigned is a broker-dealer that will receive
Exchange Securities for its own account in exchange for Initial Securities that
were acquired as a result of market-making activities or other trading
activities, it acknowledges that it will deliver a prospectus in connection
with any resale of such Exchange Securities; however, by so acknowledging and by
delivering a prospectus, the undersigned will not be deemed to admit that it is
an “underwriter” within the meaning of the Securities Act.

 

 

SCHEDULE I

 

List of
Subsidiary Guarantors

 

Neiman Marcus Special Events, Inc.

NM Financial Services, Inc.

NM Kitchens, Inc.

BergdorfGoodman.com, LLC

Bergdorf Goodman, Inc.

Bergdorf Graphics, Inc.

Neiman Marcus Holdings, Inc.

NEMA Beverage Corporation

NEMA Beverage Holding Corporation

NEMA Beverage Parent Corporation

Worth Avenue Leasing Company

NMGP, LLC

NM Nevada Trust

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