Coach 2011 Annual Report Download - page 105

“Permitted Encumbrances” means:
(a) Liens imposed by law for taxes and duties, assessments, governmental charges or levies that are not yet due or are being contested in
compliance with Section 5.04;
(b) landlords, carriers’, warehousemen’s, mechanics’, shippers’, materialmen’s, repairmen’s and other like Liens imposed by law, arising
in the ordinary course of business and securing obligations that are not overdue by more than 45 days or are being contested in compliance with
Section 5.04;
(c) pledges and deposits made in connection with workers’ compensation, unemployment insurance, old age pensions and other social
security laws or regulations, and pledges and deposits securing liability to insurance carriers under insurance or self-insurance arrangements;
(d) Liens, pledges and deposits to secure the performance of tenders, bids, trade contracts, leases, public or statutory obligations, warranty
requirements, customs, surety and appeal bonds, bonds posted in connection with actions, suits or proceedings, performance and bid bonds and
other obligations of a like nature, in each case in the ordinary course of business;
(e) Liens incurred in the ordinary course of business in connection with the sale, lease, transfer or other disposition of any credit card
receivables of the Company or any of its Subsidiaries;
(f) judgment, attachment or other similar liens in respect of judgments that do not constitute an Event of Default under clause (k) of Article
VII;
(g) easements, zoning restrictions, restrictive covenants, encroachments, rights-of-way and similar encumbrances on real property imposed
by law or arising in the ordinary course of business that do not materially detract from the value of the affected property or interfere with the ordinary
conduct of business of the Company or any Subsidiary; and
(h) possessory Liens in favor of brokers and dealers arising in connection with the acquisition or disposition of Permitted Investments;
provided that the term “Permitted Encumbrances” shall not include any Lien securing Indebtedness.
“Permitted Investments” means:
(a) direct obligations of, or obligations the principal of and interest on which are directly and fully guaranteed or insured by, the United
States of America (or by any agency thereof to the extent such obligations are backed by the full faith and credit of the United States of America) or
any Participating Member State;
(b) investments in commercial paper having, at such date of acquisition, a credit rating of at least A-2 from S&P or P-2 from Moody’s;
(c) investments in demand deposits, certificates of deposit, eurocurrency time deposits, banker’s acceptances and time deposits issued or
guaranteed by or placed with, and money market deposit accounts issued or offered by, any Lender or any commercial bank which has a combined
capital and surplus and undivided profits of not less than $100,000,000;
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