Coach 2006 Annual Report Download - page 94

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4.1.7 Cash Collateral.
(a) Upon the reduction (but not termination) of the Total Commitment to an amount less than the Maximum Drawing Amount, the
Administrative Agent may require, and at the direction of the Required Lenders shall require, that the Borrower shall immediately cash
collateralize an amount equal to 100% of such difference, to be held by the Issuing Lender as cash collateral for any drawing under the
Letters of Credit then outstanding.
(b) Upon the termination of the Total Commitment or the acceleration of the Reimbursement Obligations with respect to all Letters
of Credit in accordance with Section 13, the Administrative Agent may require, and at the direction of the Required Lenders shall require,
that the Borrower shall immediately cash collateralize an amount equal to 100% of the aggregate Maximum Drawing Amount of all such
Letters of Credit, to be held by the Issuing Lender as cash collateral for any drawing under any such Letter of Credit; provided, that upon
acceleration of the Reimbursement Obligations with respect to all Letters of Credit pursuant to Sections 13(h) or (i), the Borrower’s
obligations to immediately cash collateralize an amount equal to 100% of the aggregate Maximum Drawing Amount of all such Letters of
Credit as aforesaid shall automatically become effective without further act by the Administrative Agent or any Lender.
For purposes of this Section 4.1.7 herein, “cash collateralize” means to pledge and deposit with or deliver to the Administrative Agent, for
the benefit of the Issuing Lender and the Lenders, as collateral for the Maximum Drawing Amount of the Letters of Credit then outstanding
(or, in the case of clause (a) above, the difference between the Total Commitment and the Maximum Drawing Amount of the Letters of
Credit then outstanding), cash or deposit account balances pursuant to documentation in form and substance satisfactory to the
Administrative Agent and the Issuing Lender (which documents are hereby consented to by the Lenders). The Borrower hereby grants to the
Administrative Agent, for the benefit of the Issuing Lender and the Lenders, a security interest in all such cash, deposit accounts and all
balances therein and all proceeds of the foregoing. Cash collateral shall be maintained in blocked, interest bearing deposit accounts at Bank
of America.
4.1.8 Applicability ISP and UCP. Unless otherwise expressly agreed by the Issuing Lender and the Borrower when a Letter of
Credit is issued (a) the rules of the ISP shall apply to each standby Letter of Credit, and (b) the rules of the Uniform Customs and Practice
for Documentary Credits, as most recently published by the International Chamber of Commerce at the time of issuance shall apply to each
commercial Letter of Credit.
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