Document:

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                                                                   EXHIBIT 10.25

                                                                 August 22, 2005

Mr. Keith Monda
136 West 22nd Street
New York, NY 10011

      Re:   Employment Agreement Amendment

Dear Keith:

            This Letter Agreement confirms the understanding reached between you
and Coach, Inc., a Maryland corporation (the "Company"), regarding the terms of
your continued employment with the Company. This Letter Agreement constitutes an
amendment to that certain Employment Agreement by and between you and the
Company dated as of June 1, 2003 (the "Employment Agreement"), which is attached
hereto as Exhibit A. Capitalized terms used in this Letter Agreement and not
defined herein shall have the meaning given such terms in the Employment
Agreement.

            1. Employment Agreement Term. You and the Company acknowledge and
agree that, notwithstanding anything to the contrary in the Employment
Agreement, the Initial Term shall end on July 1, 2011 unless earlier terminated
as provided in Section 6 of the Employment Agreement.

            2. Annual Base Salary. Effective as of September 1, 2005, your
Annual Base Salary shall be payable at a rate of no less than $750,000 per year,
subject to annual increases as approved by the Committee.

            3. Annual Bonus. With respect to each Contract Year commencing on
and after July 1, 2005, your Maximum Bonus shall be equal to at least 150% of
your Annual Base Salary.

            4. Stock Options. As of August 22, 2005 (the "Grant Date"), you
shall be granted a non-qualified stock option (the "Extension Options") to
purchase 532,717 shares of Common Stock, pursuant to the terms and conditions of
the Stock Incentive Plan and a written Stock Option Agreement to be entered into
by and between you and the Company (the "Extension Stock Option Agreement"),
which, except as otherwise provided in this Section 4, shall be substantially
identical to the Retention Stock Option Agreement. For purposes of the
Employment Agreement (including without limitation Sections 7 and 11 thereof),
the Extension Options shall be treated identically to the Retention Options. The
Extension Options shall have an exercise price equal to the fair market value
per share of Common Stock as of the Grant Date and shall have a term of 10
years. The Extension Options shall become exercisable in three cumulative
installments as follows: (a) the first installment shall consist of 25% of the
shares of Common Stock covered by the Extension Options and shall become vested
and exercisable on the fourth anniversary of the Grant Date; (b) the second
installment shall consist of 25% of the shares of Common Stock covered by the
Extension Options and shall become vested and exercisable on the fifth
anniversary of the Grant Date; and (c) the third installment shall consist of
50% of the shares of Common Stock covered by the Extension Options and shall
become exercisable on the sixth anniversary of the Grant Date; provided, that,
except as otherwise provided in Section 7 of the Employment Agreement or the
Extension Stock Option Agreement, no portion of the Extension Options not then
exercisable shall become exercisable following your termination of employment
for any reason. (For the avoidance of doubt, if your employment shall terminate
by reason of your Disability or death, then Section 7(d) of the Employment
Agreement shall apply to the Extension Options.) You and the Company acknowledge
and

<PAGE>

agree that the Extension Options shall not provide for the grant of any
"Restoration Options" as defined in the Stock Incentive Plan.

            5. Employment Agreement. You and the Company acknowledge and agree
that, except as provided by this Letter Agreement, the Employment Agreement
shall remain in full force and effect.

                            [signature page follows]

                                       2

<PAGE>

            Please indicate your acceptance of the terms and provisions of this
Letter Agreement by signing both copies of this Letter Agreement and returning
one copy to me. The other copy is for your files. By signing below, you
acknowledge and agree that you have carefully read this Letter Agreement in its
entirety; fully understand and agree to its terms and provisions; and intend and
agree that it be final and legally binding on you and the Company. This Letter
Agreement shall be governed and construed under the internal laws of the State
of New York and may be executed in several counterparts.

                                Very truly yours,

                                ___________________________________
                                Felice Schulaner

                                SVP, Human Resources

Agreed and Accepted:

___________________________
Keith Monda

                                       3

<PAGE>

                                    EXHIBIT A

                             [EMPLOYMENT AGREEMENT]

                                       4

<PAGE>

                                     COACH
                            2000 STOCK INCENTIVE PLAN
                   EXTENSION OPTION GRANT NOTICE AND AGREEMENT

Keith Monda

      Coach, Inc. (the "COMPANY") is pleased to confirm that you have been
granted a stock option (the "OPTION"), effective as of August 22, 2005 (the
"GRANT DATE"), as provided in this agreement (the "Agreement"). The Option
evidenced by this Agreement is the "EXTENSION OPTION" as defined in that certain
Employment Agreement entered into by and between you and the Company effective
as of June 1, 2003 (as amended as of the Grant Date, the "EMPLOYMENT
AGREEMENT").

      1. OPTION RIGHT. Your Option is to purchase, on the terms and conditions
set forth below, the following number of shares (the "OPTION SHARES") of the
Company's Common Stock, par value $.01 per share (the "COMMON STOCK"), at the
exercise price specified below (the "EXERCISE PRICE").

                       Number of Option Shares  Exercise Price Per Option Share
                       -----------------------  -------------------------------
      Shares Granted         532,717                      $32.37

      2. OPTION. This Option is a non-qualified stock option that is intended to
conform in all respects with the Company's 2000 Stock Incentive Plan (the
"PLAN"), a copy of which will be supplied to you upon your request, and the
provisions of which are incorporated herein by reference. This Option is not
intended to qualify as an incentive stock option within the meaning of Section
422 of the Internal Revenue Code of 1986, as amended.

      3. EXPIRATION DATE. This Option expires on the tenth (10th) anniversary of
the Grant Date (the "EXPIRATION DATE"), subject to earlier expiration upon your
death, disability or other termination of employment, as provided in Section 5
below.

      4. VESTING. This Option may be exercised only to the extent it has vested.
Subject to Section 5 below, if you are continuously employed by the Company or
any of its affiliates (collectively, the "COACH COMPANIES") from the Grant Date
until (a) August 22, 2009, this Option will vest with respect to 25% of the
Option Shares as of such date, (b) August 22, 2010, this Option will vest with
respect to an additional 25% of the Option Shares as of such date, and (c)
August 22, 2011, this Option will vest with respect to the remaining 50% of the
Option Shares as of such date.

<PAGE>

      5. TERMINATION OF EMPLOYMENT.

            (a) DEATH OR DISABILITY. If you cease active employment with the
      Company because of your death or "DISABILITY" (as defined in the
      Employment Agreement), any portion of this Option that is not vested and
      exercisable as of the date of such termination shall thereupon be
      forfeited; provided, that in the alternative the Human Resources and
      Corporate Governance Committee (the "COMMITTEE") of the Company's Board of
      Directors may, in its sole discretion, cause all or any portion of this
      Option then held by you to become vested and exercisable effective as of
      the date of such termination. In the event that your employment terminates
      due to your death or Disability, the last day on which any vested Options
      may be exercised shall be the earlier of (i) the Expiration Date, or (ii)
      the fifth anniversary of your death or Disability.

            (b) TERMINATION WITHOUT CAUSE OR FOR GOOD REASON. Except as
      otherwise provided in Section 5(d) with respect to certain terminations of
      employment in connection with a Change in Control, if your employment is
      terminated by the Company without "CAUSE" (as defined in the Employment
      Agreement) or by you for "GOOD REASON" (as defined in the Employment
      Agreement), then (i) any portion of this Option that is not vested and
      exercisable as of the date of such termination shall continue to become
      exercisable as of the dates set forth in Section 4 and (ii) the last day
      on which this Option may be exercised shall be the Expiration Date.

            (c) TERMINATION FOR CAUSE OR WITHOUT GOOD REASON. If your employment
      is terminated by the Company for Cause or by you without Good Reason
      (including without limitation by reason of your retirement), then (i) any
      portion of this Option that is not vested and exercisable as of the date
      of such termination shall thereupon be forfeited and (ii) the vested
      portion of this Option shall terminate (A) if your employment is
      terminated by the Company for Cause, then this Option shall terminate on
      the date your employment terminates, (B) if your employment is terminated
      by you without Good Reason (including without limitation by reason of your
      retirement) prior to August 22, 2011, then this Option shall terminate on
      the earlier of (x) the Expiration Date, or (y) the 90th day following the
      date of your termination of employment, or (C) if your employment is
      terminated by you without Good Reason (including without limitation by
      reason of your retirement) on or following August 22, 2011, then this
      Option shall terminate on the Expiration Date.

            (d) CERTAIN TERMINATIONS OF EMPLOYMENT IN CONNECTION WITH A CHANGE
      IN CONTROL. Notwithstanding Section 5(b), if your employment is terminated
      by the Company without Cause or by you for Good Reason within six months
      prior to a "CHANGE IN CONTROL" (as defined in the Employment Agreement) or
      during the 12 month period immediately following such Change in Control,
      then (i) this Option shall become fully vested and exercisable with
      respect to all shares subject thereto effective immediately prior to the
      date of such

                                       2
<PAGE>

      termination, and (ii) the last day on which this Option may be exercised
      shall be the Expiration Date.

      6. EXERCISE. This Option may be exercised (subject to the restrictions
contained in this Agreement) in whole or in part for the number of shares
specified (which in all cases must be at least the lesser of two-hundred and
fifty (250) or the total number of shares outstanding under this Option) in a
verbal or written notice that is delivered to the Company or its designated
agent and is accompanied by full payment of the Exercise Price for such number
of Option Shares in cash, or by surrendering or attesting to the ownership of
shares of Common Stock, or a combination of cash and shares of Common Stock, in
an amount or having a combined value equal to the aggregate Exercise Price for
such Option Shares. In connection with any payment of the Exercise Price by
surrender or attesting to the ownership of shares of Common Stock, proof
acceptable to the Company shall be submitted upon request that such previously
acquired shares have been owned by you for at least six (6) months prior to the
date of exercise. Notwithstanding anything contained in this Agreement to the
contrary, this Option shall not provide for the grant of any "RESTORATION
OPTIONS" as defined in the Plan.

      7. FORFEITURE. Notwithstanding anything contained in this Agreement to the
contrary, this Option shall be subject to Section 11 of the Employment
Agreement. Accordingly, if you (a) violate any of the covenants set forth in
Section 9(a) or 9(b) of the Employment Agreement, or (b) materially violate any
of the covenants set forth in Section 9(c), 9(e) or 9(f) of the Employment
Agreement, then pursuant to Section 11 of the Employment Agreement, then (i) any
portion of this Option that has not been exercised prior to the date of such
breach shall thereupon be forfeited and (ii) you shall be required to pay to the
Company the amount of all Retention Option Gain (as defined in the Employment
Agreement). You shall also be required to pay to the Company the amount of all
Retention Option Gain upon the occurrence of those certain events described in
Section 11(b) of the Employment Agreement.

      8. RIGHTS AS A STOCKHOLDER. You will have no right as a stockholder with
respect to any Option Shares until and unless ownership of such Option Shares
has been transferred to you.

      9. OPTION NOT TRANSFERABLE. This Option will not be assignable or
transferable by you, other than by a qualified domestic relations order or by
will or by the laws of descent and distribution, and will be exercisable during
your lifetime only by you (or your legal guardian or personal representative).
If this Option remains exercisable after your death, subject to Sections 1, 5
and 6 above, it may be exercised by the personal representative of your estate
or by any person who acquires the right to exercise such Option by bequest,
inheritance or otherwise by reason of your death.

      10. TRANSFERABILITY OF OPTION SHARES. Option Shares generally are freely
tradable in the United States. However, you may not offer, sell or otherwise
dispose of any Option Shares in a way which would: (a) require the Company to
file any registration statement with the Securities and Exchange Commission (or
any similar filing under state

                                       3
<PAGE>

law or the laws of any other country) or to amend or supplement any such filing
or (b) violate or cause the Company to violate the Securities Act of 1933, as
amended, the rules and regulations promulgated thereunder, any other state or
federal law, or the laws of any other country. The Company reserves the right to
place restrictions required by law on Common Stock received by you pursuant to
this Option.

      11. CONFORMITY WITH THE PLAN. This Option is intended to conform in all
respects with, and is subject to applicable provisions of, the Plan.
Inconsistencies between this Agreement and the Plan shall be resolved in
accordance with the terms of the Plan. By your acceptance of this Agreement, you
agree to be bound by all of the terms of this Agreement and the Plan.

      12. NO RIGHTS TO CONTINUED EMPLOYMENT. Nothing in this Agreement confers
any right on you to continue in the employ of the Coach Companies or affects in
any way the right of any of the Coach Companies to terminate your employment at
any time with or without cause.

      13. MISCELLANEOUS.

            (a) AMENDMENT OR MODIFICATIONS. The grant of this Option is
      documented by the minutes of the Committee, which records are the final
      determinant of the number of shares granted and the conditions of this
      grant. The Committee may amend or modify this Option in any manner to the
      extent that the Committee would have had the authority under the Plan
      initially to grant such Option, provided that no such amendment or
      modification shall directly or indirectly impair or otherwise adversely
      affect your rights under this Agreement without your prior written
      consent. Except as in accordance with the two immediately preceding
      sentences, this Agreement may be amended, modified or supplemented only by
      an instrument in writing signed by both parties hereto.

            (b) GOVERNING LAW. All matters regarding or affecting the
      relationship of the Company and its stockholders shall be governed by the
      General Corporation Law of the State of Maryland. All other matters
      arising under this Agreement shall be governed by the internal laws of the
      State of New York, including matters of validity, construction and
      interpretation. You and the Company agree that all claims in respect of
      any action or proceeding arising out of or relating to this Agreement
      shall be heard or determined in any state or federal court sitting in New
      York, New York and you and the Company agree to submit to the jurisdiction
      of such courts, to bring all such actions or proceedings in such courts
      and to waive any defense of inconvenient forum to such actions or
      proceedings. A final judgment in any action or proceeding so brought shall
      be conclusive and may be enforced in any manner provided by law.
      Notwithstanding the foregoing, any matter also covered by, or dependent
      upon any interpretation under, the Employment Agreement shall be resolved
      pursuant to the arbitration provisions of Section 20 thereof.

                                       4
<PAGE>

            (c) SUCCESSORS AND ASSIGNS. Except as otherwise provided herein,
      this Agreement will bind and inure to the benefit of the respective
      successors and permitted assigns and heirs and legal representatives of
      the parties hereto whether so expressed or not.

            (d) SEVERABILITY. Whenever feasible, each provision of this
      Agreement will be interpreted in such manner as to be effective and valid
      under applicable law, but if any provision of this Agreement is held to be
      prohibited by or invalid under applicable law, such provision will be
      ineffective only to the extent of such prohibition or invalidity, without
      invalidating the remainder of this Agreement.

                            [signature page follows]

                                       5

<PAGE>

      In witness whereof, the parties hereto have executed and delivered this
agreement.

                                 COACH, INC.

                                 _____________________________________________
                                 Felice Schulaner
                                 Senior Vice President of Human Resources

                                 Date:  August 22, 2005

      I ACKNOWLEDGE THAT I HAVE READ AND UNDERSTAND THE TERMS AND CONDITIONS OF
THIS AGREEMENT AND OF THE PLAN AND I AGREE TO BE BOUND THERETO.

                                  OPTIONEE:

                                  _____________________________________________
                                  KEITH MONDA

                                  SSN: ###-##-####

                                  Date: August 22, 2005

                                       6exv10w21

 

EXHIBIT 10.21

FIRST AMENDMENT

     THIS FIRST AMENDMENT, dated as of February 7, 2005 (this “Amendment”) to that certain
Receivables Financing Agreement, dated as of December 9, 2004 (the “Financing Agreement”),
among HL Funding II, Inc., a Delaware corporation (the “Borrower”), CAFCO, LLC, as an
“Investor”, Citibank, N.A., as a “Bank”, Citicorp North America, Inc., as the program agent
(“Program Agent”) and as an “Investor Agent”, HLI Operating Company, Inc., as “Servicer”
(“HLIOC”) and Citibank, N.A., as the “Disbursement Agent”, and the other financial
institutions from time to time a party thereto, as “Investors”, “Banks” and/or “Investor Agents”
(as each such quoted term is defined in the Financing Agreement), is by and among the Borrower,
HLIOC, the Program Agent, the Bank, the Investor Agent, the Investor and the Disbursement Agent.
Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to them in
the Financing Agreement, as amended hereby.

SECTION 1. Amendment. For valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, and subject to the fulfillment of the conditions set forth below, the parties
hereto agree that the Financing Agreement is hereby amended by deleting the definition of
“Originator” in its entirety and substituting the following in its stead:

“Originator” means each of the Persons designated as such on
Schedule 1.01-4, as such Schedule 1.01-4 may,
notwithstanding Section 11.01 of the Financing Agreement, be amended,
restated, supplemented or otherwise modified from time to time with the
written consent of the Program Agent and the Borrower.

SECTION 2. Representations and Warranties. Each of the Borrower and Servicer (each an
“HL Person”) hereby severally represents and warrants to each Investor, Bank, Investor
Agent, the Program Agent and the Disbursement Agent that, as of the Effective Date: (a) all of the
representations and warranties of such HL Person in the Financing Agreement and in the other
Transaction Documents are true and correct in all material respects on and as of the Effective Date
as though made to each Investor, Bank, Investor Agent, the Program Agent and the Disbursement Agent
on and as of such date (other than representations and warranties which expressly speak or are
deemed made as of a different date, which representations shall be made only on such date), and (b)
no Event of Termination or Incipient Event of Termination has occurred and is continuing.

SECTION 3. Effective Date. This Amendment shall become effective as of the date first
above written (the “Effective Date”) upon the satisfaction of the following conditions:

     (a) The Program Agent shall have received counterparts hereof executed by each of the parties
hereto; and

     (b) Each of the representations and warranties contained in this Amendment shall be true
and correct in all material respects on and as of the Effective Date.

 Citicorp North America, Inc./HL Funding II, Inc.

First Amendment

 

 

SECTION 4. Miscellaneous.

     (a) This Amendment is a Transaction Document. The headings herein are for convenience of
reference only and shall not alter or otherwise affect the meaning hereof.

     (b) On and after the Effective Date, each reference in the Financing Agreement to “this
Agreement”, “hereunder”, “hereof” or words of like import, and each reference in the other
Transaction Documents to the Financing Agreement, shall mean and be a reference to the Financing
Agreement as modified hereby. Except to the extent specifically modified hereby, all of the terms
of the Financing Agreement and the other Transaction Documents remain unchanged and in full force
and effect and are hereby ratified and confirmed in all respects.

     (c) The execution, delivery and effectiveness of this Amendment shall not operate as a waiver
of any right, power or remedy of any Investor, Bank, Investor Agent or the Program Agent or
Disbursement Agent under the Financing Agreement or any of the Transaction Documents, nor obligate
any Investor, Bank, Investor Agent or the Program Agent or Disbursement Agent to agree to similar
amendments in the future.

SECTION 5. Counterparts; Facsimile Delivery. This Amendment may be executed in
counterparts, each of which when so executed and delivered shall be deemed an original, but all
such counterparts together shall constitute but one and the same instrument. Delivery of an
executed counterpart of this Amendment by facsimile transmission shall be effective as delivery of
a manually executed counterpart hereof.

SECTION 6. GOVERNING LAW. THIS AMENDMENT SHALL BE INTERPRETED, AND THE RIGHTS AND
LIABILITIES OF THE PARTIES HERETO DETERMINED, IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

Citicorp North America, Inc./HL Funding II, Inc.

First Amendment

 

 

IN WITNESS WHEREOF, the Investor, Bank, Investor Agent, Program Agent, Borrower, Servicer and
Disbursement Agent have caused this Amendment to be executed by their respective officers thereunto
duly authorized as of the date first above written.

	 	 	 	 	 
	     BORROWER:	HL FUNDING II, INC.

 	 
	 	By:  	/s/ Steven Esau	 
	 	 	Name:  	Steven Esau	 
	 	 	Title:  	Assistant Secretary	 

	 	 	 	 	 
	     SERVICER:	HLI OPERATING COMPANY, INC.

 	 
	 	By:  	/s/ Steven Esau	 
	 	 	Name:  	Steven Esau	 
	 	 	Title:  	Assistant Secretary	 

Signature Page to

Citicorp North America, Inc./HL Funding II, Inc.

First Amendment

 

 

	 	 	 	 	 	 	 
	     INVESTOR:	 	CAFCO, LLC
	 
	 	 	 	 	 	 
	 	 	By:	 	Citicorp North America, Inc., 
as Attorney-in Fact
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Debbie Ng 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Debbie Ng
	 

	 	 	 	 	 	Vice President

	 	 	 	 	 
	     PROGRAM AGENT:	CITICORP NORTH AMERICA, INC.,

as Program Agent

 	 
	 	By:  	/s/ Debbie Ng	 
	 	 	Name:  	Debbie Ng	 
	 	 	Vice President 	 

	 	 	 	 	 
	     BANK:	CITIBANK, N.A.

 	 
	 	By:  	/s/ Debbie Ng	
	 	 	Name:  	Debbie Ng	
	 	 	Vice President

Percentage: 100.00% 	 

	 	 	 	 	 
	     INVESTOR AGENT:	CITICORP NORTH AMERICA, INC.

 	 
	 	By:  	/s/ Debbie Ng	 
	 	 	Name:  	Debbie Ng	 
	 	 	Title:  	Vice President	 

Signature Page to

Citicorp North America, Inc./HL Funding II, Inc.

First Amendment

 

 

	 	 	 	 	 
	     DISBURSEMENT AGENT:	CITIBANK, N.A.

 	 
	 	By:  	/s/ John Hannon	 
	 	 	Name:  	John Hannon	 
	 	 	Title:  	AVP	 

Signature Page to

Citicorp North America, Inc./HL Funding II, Inc.

First Amendment

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