Common use of Payment at Maturity; Cash Collateral Clause in Contracts

Payment at Maturity; Cash Collateral. (i) McKesson Canada shall pay to the Canadian Administrative Agent, and there shall become due and payable, at 12:00 noon (Eastern time) on the maturity date for each Bankers’ Acceptance an amount in Canadian Dollars in same day funds equal to the Face Amount of such Bankers’ Acceptance. McKesson Canada shall make each payment hereunder in respect of Bankers’ Acceptances by deposit of the required funds to the Canadian Administrative Agent at the Canada Administrative Agent’s Office. Upon receipt of such payment, the Canadian Administrative Agent will promptly thereafter cause such payment to be distributed in like funds in payment of Bankers’ Acceptances ratably (based on the proportion that the aggregate Face Amount of Bankers’ Acceptances held by any Canadian Lender or any participant thereof maturing on the relevant date bears to the aggregate Face Amount of Bankers’ Acceptances accepted or held by all Canadian Lenders or any participants or assignees thereof maturing on such date) to Canadian Lenders for their account and for the account of any participant, to the extent of and in accordance with their participation. Such payment to the Canadian Administrative Agent shall satisfy McKesson Canada’s obligations under any Bankers’ Acceptances to which it relates and each Canadian Lender that has accepted such Bankers’ Acceptances shall thereafter be solely responsible for the payment of such Bankers’ Acceptances and shall indemnify and hold McKesson Canada harmless against any liabilities, costs or expenses incurred by McKesson Canada as a result of any failure by such Canadian Lender or such participant to pay such Bankers’ Acceptance in accordance with its terms. (ii) If McKesson Canada fails to pay any Bankers’ Acceptance when due, or to convert or renew the Face Amount of such Bankers’ Acceptance pursuant to Section 2.04(i), the unpaid amount due and payable in respect thereof shall be converted as of such date, and without any necessity for McKesson Canada to give a Committed Loan Notice in accordance with Section 2.02, to, and thereafter be outstanding as, a Canadian Prime Rate Loan made by, the Canadian Lenders and shall bear interest calculated and payable as provided in Section 2.08. Each Borrower acknowledges, agrees and confirms with the Canadian Lenders that the records of each Canadian Lender in respect of payment of any Bankers’ Acceptance by such Canadian Lender shall be binding on McKesson Canada and shall be conclusive evidence (in the absence of manifest error) of a Canadian Prime Rate Loan to an amount owing by McKesson Canada to such Canadian Lender. McKesson Canada further agrees that if an Event of Default or the Maturity Date shall occur prior to the date upon which any one or more Bankers’ Acceptances are payable by a Canadian Lender, thereupon, McKesson Canada shall Cash Collateralize the full Face Amounts of all such Bankers’ Acceptances as provided in Section 2.03(g), notwithstanding the fact that any such Bankers’ Acceptance may be held by such Canadian Lender in its own right at maturity; provided, however, that if for any reason McKesson Canada fails to so Cash Collateralize any Bankers’ Acceptance, thereupon McKesson Canada shall be deemed for all purposes to have received a Canadian Prime Rate Loan in an amount equal to the Face Amount of such Bankers’ Acceptance and McKesson Canada shall pay interest thereon at the Canadian Prime Rate until repayment thereof in full.

Payment at Maturity; Cash Collateral. (i) McKesson Canada shall pay to the Canadian Administrative Agent, and there shall become due and payable, at 12:00 noon (Eastern Toronto time) on the maturity date for each Bankers’ ' Acceptance an amount in Canadian Dollars in same day funds equal to the Face Amount of such Bankers’ ' Acceptance. McKesson Canada shall make each payment hereunder in respect of Bankers’ ' Acceptances by deposit of the required funds to the Canadian Administrative Agent at the Canada Administrative Agent’s 's Office. Upon receipt of such payment, the Canadian Administrative Agent will promptly thereafter cause such payment to be distributed in like funds in payment of Bankers’ ' Acceptances ratably (based on the proportion that the aggregate Face Amount of Bankers’ ' Acceptances held by any Canadian Lender or any participant thereof maturing on the relevant date bears to the aggregate Face Amount of Bankers’ ' Acceptances accepted or held by all Canadian Lenders or any participants or assignees thereof maturing on such date) to Canadian Lenders for their account and for the account of any participant, to the extent of and in accordance with their participation. Such payment to the Canadian Administrative Agent shall satisfy McKesson Canada’s 's obligations under any Bankers’ ' Acceptances to which it relates and each Canadian Lender that has accepted such Bankers’ ' Acceptances shall thereafter be solely responsible for the payment of such Bankers’ ' Acceptances and shall indemnify and hold McKesson Canada harmless against any liabilities, costs or expenses incurred by McKesson Canada as a result of any failure by such Canadian Lender or such participant to pay such Bankers’ ' Acceptance in accordance with its terms. (ii) If McKesson Canada fails to pay any Bankers’ ' Acceptance when due, or to convert or renew the Face Amount of such Bankers’ ' Acceptance pursuant to Section 2.04(i), the unpaid amount due and payable in respect thereof shall be converted as of such date, and without any necessity for McKesson Canada to give a Committed Loan Notice in accordance with Section 2.02, to, and thereafter be outstanding as, a Canadian Prime Rate Loan made by, the Canadian Lenders and shall bear interest calculated and payable as provided in Section 2.08. Each Borrower acknowledges, agrees and confirms with the Canadian Lenders that the records of each Canadian Lender in respect of payment of any Bankers’ Acceptance by such Canadian Lender shall be binding on McKesson Canada and shall be conclusive evidence (in the absence of manifest error) of a Canadian Prime Rate Loan to an amount owing by McKesson Canada to such Canadian Lender. McKesson Canada further agrees that if an Event of Default or the Maturity Date shall occur prior to the date upon which any one or more Bankers’ Acceptances are payable by a Canadian Lender, thereupon, McKesson Canada shall Cash Collateralize the full Face Amounts of all such Bankers’ Acceptances as provided in Section 2.03(g), notwithstanding the fact that any such Bankers’ Acceptance may be held by such Canadian Lender in its own right at maturity; provided, however, that if for any reason McKesson Canada fails to so Cash Collateralize any Bankers’ Acceptance, thereupon McKesson Canada shall be deemed for all purposes to have received a Canadian Prime Rate Loan in an amount equal to the Face Amount of such Bankers’ Acceptance and McKesson Canada shall pay interest thereon at the Canadian Prime Rate until repayment thereof in full2.