Coach 2012 Annual Report Download - page 21

providers to meet their contractual obligations, whether or not by culpable default, could detract from the
continuing viability of the HDRs as an investment. Coach will not have direct contractual recourse against the
custodian, any sub-custodian or the registrar; hence the potential for redress in circumstances of default will
be limited. However, Coach and the HDR Depositary have executed a deed poll in favor of HDR holders in
relation to the exercise by them of their rights as HDR holders under the Deposit Agreement against the
Company or the HDR Depositary.
Withdrawals and exchanges of HDRs into Common Stock traded on the NYSE might adversely affect the
liquidity of the HDRs.
Our Common Stock is presently traded on the NYSE. Any HDR holder may at any time request that
their HDRs be withdrawn and exchanged into Common Stock for trading on the NYSE. Upon the exchange
of HDRs into Common Stock, the relevant HDRs will be cancelled. In the event that a substantial number of
HDRs are withdrawn and exchanged into Common Stock and subsequently cancelled, the liquidity of the
HDRs on the Hong Kong Stock Exchange might be adversely affected.
The time required for HDRs to be exchanged into Common Stock (and vice versa) might be longer than
expected and investors might not be able to settle or effect any sales of their securities during this period.
There is no direct trading or settlement between the NYSE and the Hong Kong Stock Exchange on
which the Common Stock and the HDRs are respectively traded. In addition, the time differences between
Hong Kong and New York and unforeseen market circumstances or other factors may delay the exchange of
HDRs into Common Stock (and vice versa). Investors will be prevented from settling or effecting the sale of
their securities across the various stock exchanges during such periods of delay. In addition, there is no
assurance that any exchange of HDRs into Common Stock (and vice versa) will be completed in accordance
with the timelines investors might anticipate.
Investors are subject to exchange rate risk between Hong Kong dollars and U.S. dollars.
The value of an investment in the HDRs quoted in Hong Kong dollars and the value of dividend
payments in respect of the HDRs could be affected by fluctuations in the U.S. dollar/Hong Kong dollar
exchange rate. While the Hong Kong dollar is currently linked to the U.S. dollar using a specified trading
band, no assurance can be given that the Hong Kong government will maintain the trading band at its current
limits or at all.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
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