Best Buy 2003 Annual Report Download - page 55

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it being understood that, without limiting any of the other terms and conditions of this Offer Letter, including, without limitation, the
Margin Requirements set out below, the maximum principal amount available to the Borrower under the Operating Loan, including
the face amount of any outstanding Letters of Credit or Bankers’ Acceptances issued by the Bank shall not at any time exceed CDN
$50,000,000;
3.2. The existing F/X Facility (as defined in the Prior Offer Letter) shall be replaced
with a demand foreign exchange contract line of credit (the “F/X Facility”) under which
the Aggregate F/X Credit Risk (as defined below) shall at no time exceed CDN
$5,000,000 (the “F/X Credit Limit”).
3.3. A new CDN $13,000,000 electronic funds transfer line (the “EFT Limit”) shall be
available independent and exclusive from the Operating Loan;
3.4. The CDN $15,000,000 Bulge Facility, the Term Loan (under which the amount of
CDN $11,660,000 is outstanding as at September 13, 2002) and the Swap Facility (all as
described in the Prior Offer Letter) shall be fully repaid and cancelled.
4. Definitions and Interpretation:
The capitalized terms used in this Offer Letter shall have the meanings given to such terms either in the body of this Offer Letter or at
the end of Schedule “A” attached hereto (“Schedule “A””), whichever is applicable, and Schedule “A”, any additional schedules and
all of the provisions thereof are hereby incorporated into and shall form an integral part of this Offer Letter.
5. Purpose:
5.1. The Operating Loan shall be used to assist in financing the general corporate
purposes of the Borrower and to repay in full the Term Loan and the Swap Facility;
5.2. The F/X Facility shall be used to assist the Borrower in hedging against currency
fluctuations. In particular, the F/X Facility shall be used to enable the Borrower to
enter into forward exchange contracts with the Bank for the purchase or sale of U.S.
Dollars (or other major currencies approved by the Bank) having terms to maturity of
up to one year (any one such forward exchange contract being hereinafter referred to
as a “F/X Contract”); and
5.3. The EFT Limit will be used to facilitate the Borrower making its bi−weekly
payroll obligations to its employees.
2
6. Availability: