Best Buy 2003 Annual Report Download - page 56

6.1. So long as there is no Event of Default (as defined below) and subject to the
Margin Requirements (as defined below) and upon satisfaction of the Conditions
Precedent specified below, the Operating Loan shall, at the Borrower’s option, be made
available by way of:
6.1.1 direct advances, in either Canadian Dollars or U.S. Dollars, or any combination thereof, by way
of current account overdraft;
6.1.2 Bankers’ Acceptances in face amounts of not less than CDN $500,000 and in integral multiples
of CDN $100,000 and otherwise pursuant to section 4 of Schedule “A”; and
6.1.3 Canadian Dollar or U.S. Dollar Letters of Credit (as defined in Schedule “A”) issued under the
Documentary Credit Sub−Facility,
or any combination thereof.
6.2. Upon satisfaction of the Conditions Precedent set out below, the F/X Facility
shall be made available to the Borrower by way of the Bank entering into F/X
Contracts with and at the request of the Borrower, provided that the Aggregate F/X
Credit Risk applicable to all F/X Contracts entered into by the Bank and in effect at
any given time shall not exceed the F/X Credit Limit specified under the heading
“Credit Facilities” above, namely, CDN $5,000,000. For the purposes of this Offer
Letter, “Aggregate F/X Credit Risk” means the aggregate of the F/X Credit Risk Values
applicable to all F/X Contracts entered into by the Bank and remaining in effect at any
given time; “F/X Credit Risk Value” means the value obtained when the face value of a
given F/X Contract (converted to Canadian Dollars, where applicable, in accordance
with the Bank’s standard rates of conversion) is multiplied by the F/X Credit Risk
Factor assigned by the Bank to such F/X Contract; “F/X Credit Risk Factor” means the
foreign exchange credit risk factor with respect to any particular F/X Contract,
expressed as a percentage, as determined by the Bank from time to time in its absolute
discretion, based upon the term to maturity of the applicable F/X Contract and the
Bank’s assessment of the risk associated with the market for the subject currency(ies).
For clarification purposes:
6.2.1 based on the F/X Credit Risk Factors utilized by the Bank and the F/X Credit Limit applicable
to the F/X Facility, the Borrower would at the date hereof be permitted to enter into 12−month U.S.
Dollar F/X Contracts having an aggregate value of up to approximately US $28,000,000, provided that
the aggregate value of the F/X Contracts which the Borrower may be entitled to enter into at any given
time will
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vary based upon the length of the term of the individual F/X Contracts and the F/X Credit Risk Factors applicable thereto,
which F/X Credit Risk Factors may be varied by the Bank from time to time, in its absolute discretion; and