Common use of Deposits for Borrower Obligations Clause in Contracts

Deposits for Borrower Obligations. The Guarantor hereby agrees --------------------------------- that it shall pledge, or cause one or more of its Subsidiaries to pledge, to secure the Guarantor's obligations under its guarantees of Specified D&O Facilities, cash in an amount and on the dates set forth herein, by depositing or causing to be deposited with the D&O Collateral Agent (to be held and applied pursuant to the provisions of the D&O Cash Collateral Agreement) as follows: (i) on or before the Effective Date, the Initial Cash Collateral Deposit, (ii) on or before December 15, 2000, an amount equal to the Aggregate $25 Benchmark Deficiency for the Director Borrowers, (iii) commencing with the delivery of each Compliance Certificate pursuant to Section 3.02 (a) of the Appendix (incorporated herein pursuant to Section 6(a) hereof) relating to the year period ending December 31, 2000, an amount equal to the $25 Benchmark Deficiency for all C-T Borrowers terminated through the end of the period covered by each such Compliance Certificate (each, a "C-T Borrower Cash Collateral Deposit"); provided, ------------------------------------ -------- however, the Guarantor may elect to make that portion of the C-T Borrower ------- Cash Collateral Deposit, up to a maximum aggregate of $15,000,000, relating to C-T Borrowers terminated during the period from the Effective Date to and through October 31, 2000, as follows: (A) one-third (but in no event more than $5,000,000) on the date of the required delivery of the Compliance Certificate relating to the year ending December 31, 2000, (B) one-third (but in no event more than $5,000,000) on the date of the required delivery of the Compliance Certificate relating to the year ending December 31, 2001, and (C) one-third (but in no event more than $5,000,000) on the date of the required delivery of the Compliance Certificate relating to the year ending December 31, 2002; provided, further, however, that, -------- ------- ------- consistent with, but not in limitation of, the foregoing, on the date of the required delivery of the Compliance Certificate for the year ending December 31, 2000, the Guarantor shall deposit or cause to be deposited the sum of (x) the difference, if a positive number, between: (i) that portion of the C-T Borrower Cash Collateral Deposit relating to all C-T Borrowers terminated during the period from the Effective Date to and through October 31, 2000 and (ii) $15,000,000 and (y) that portion of the C-T Cash Collateral Deposit relating to the employees terminated during the period from November 1, 2000 to and through December, 31, 2000.