Document:

Exhibit 4.3

 

K. (Keith) Richmond

Senior Account Manager

Tel: (604) 665-8409

Fax: (604) 665-6368

Email: keith.richmond@rbc.com

 

March 9, 2004

 

Private and Confidential

 

Best Buy Canada
Ltd./Magasins Best Buy Ltee

8800 Glenlyon Parkway

Burnaby, British Columbia V5J 5K3

 

 

Attention: Lana Bevilacqua

 

Dear Sirs:

 

We
are pleased to offer the credit facilities described below (the “Credit Facilities”), subject to the
following terms and conditions. This agreement supersedes and cancels any and
all previous agreements with the Borrower or its predecessors (the “Cancelled
Credit Facility”). In addition, any amount owing by the Borrower to the Bank
under the Cancelled Credit Facility is deemed to be a Borrowing hereunder.

 

DEFINITIONS AND SCHEDULES

The
attached schedules are incorporated into this agreement by reference.
Schedule “A” contains definitions of capitalized terms used and not
otherwise defined in this agreement. Unless otherwise provided, all dollar
amounts are in Canadian currency and accounting terms are to be interpreted in
accordance with GAAP.  

 

	
  BORROWER

  	
   

  	
   

  
	
  Best Buy Canada Ltd./Magasins Best Buy Ltee

  	
   

  	
  (the “Borrower”)

  
	
   

  	
   

  	
   

  
	
  LENDER

  	
   

  	
   

  
	
  Royal Bank of Canada

  	
   

  	
  (the “Bank”)

  

 

CREDIT FACILITIES

Facility  (1):                              $20,000,000 revolving demand facility, by way of:

 

(a)                                  RBP based loans (“RBP Loans”);

 

(b)                                 RBUSBR based loans in US currency (“RBUSBR Loans”);

 

(c)                                  Bankers’ Acceptances (“BAs”);

 

(d)                                 Letters of Credit in Canadian currency, US
currency or other approved currency (“LCs”);

 

(e)                                  Letters of Guarantee in Canadian currency, US
currency or other approved currency (“LGs”).

 

 

Facility  (2):                            $5,000,000 revolving demand facility available
only from August 1st to and including January 31st  annually, by way of:

 

(a)                              RBP based loans (“RBP Loans”);

 

(b)                             RBUSBR based loans in US currency (“RBUSBR Loans”);

 

(c)                              Bankers’ Acceptances (“BAs”);

 

(d)                             Letters of Credit in Canadian currency, US
currency or other approved currency (“LCs”);

 

(e)                              Letters of Guarantee in Canadian currency, US
currency or other approved currency (“LGs”).

 

Each
use of the Credit Facilities is a “Borrowing”
and all such usages outstanding at any time are “Borrowings”. Schedule “B” contains
notice provisions applicable to Borrowings that must be complied with.
Schedule “C” contains terms and conditions applicable to Borrowings made
otherwise than by way of RBP Loans or RBUSBR Loans which must be complied with.

 

FEF CONTRACTS

At
the Borrower’s request the Bank may enter into Foreign Exchange Forward
Contracts (“FEF Contracts”) with
the Borrower from time to time. The Bank makes no commitment to enter into any
FEF Contract and may at any time in its sole discretion decline to enter into
any FEF Contract. FEF Contracts will be governed by the terms and conditions
set forth in the FEF Contracts Schedule attached hereto.

 

TERMS
OF OTHER FACILITIES

The
Credit Facilities are in addition to the following:

 

(a)                              an assigned lease obligation from GATX

 

In
the event of conflict between this agreement and any separate agreement
delivered in connection with any such other facilities, the terms of such
separate agreement shall govern.

 

PURPOSE

 

Facilities
(1) & (2)

Finance
general operating requirements.

 

AVAILABILITY

Facilities
(1) & (2)

The
Borrower may borrow, convert, repay and reborrow up to the amount of these
revolving facilities, provided:

 

(a)                              these facilities are made available at the
sole discretion of the Bank and the Bank may cancel or restrict availability of
any unutilized portion of these facilities at any time and from time to time
without notice or demand.

 

REPAYMENT

 

Facilities
(1) & (2)

Borrowings
under these facilities are expected to revolve with operating requirements.

 

Notwithstanding
compliance with the covenants and all other terms and conditions of this
agreement, and regardless of the maturities of any outstanding instruments or
contracts, Borrowings under these facilities are repayable on demand and the
Bank may terminate these facilities at any time, without notice or demand.

 

2

 

Upon
demand the Borrower shall pay to the Bank all Borrowings outstanding under
these facilities including, without limitation, an amount equal to the
aggregate of the face amounts of all BAs, LCs and LGs which are unmatured or
unexpired, which amount shall be held by the Bank as security for the
Borrower’s obligations to the Bank in respect of such instruments or contracts.
The Bank may enforce its rights to realize upon its security and retain an
amount sufficient to secure the Bank for the Borrower’s obligations to the Bank
in respect of such instruments or contracts.

 

INTEREST RATES AND FEES

 

Facilities
(1) & (2)

	
  RBP
  Loans:

  	
   

  	
  RBP
  plus 0% per annum.

  
	
  RBUSBR
  Loans:

  	
   

  	
  RBUSBR
  plus 0% per annum.

  
	
  BAs:

  	
   

  	
  acceptance
  fee 1.00% per annum.

  
	
  LCs:

  	
   

  	
  fee
  to be quoted by the Bank at the time of issue of each LC.

  
	
  LGs:

  	
   

  	
  fee
  to be quoted by the Bank at the time of issue of each LG, subject to a
  minimum fee of $100 in the currency of issue (where in Canadian currency or
  US currency) and $100 in Canadian currency where issued in any other approved
  currency.

  

 

The
Bank agrees to reimburse the Borrower for up to the first $10,000 (Canadian) in
legal fees associated with the establishment of these Facilities.

 

CALCULATION AND PAYMENT OF INTEREST AND FEES

 

RBP
Loans and RBUSBR Loans

The
Borrower shall pay interest on each RBP Loan and RBUSBR Loan, monthly in
arrears, on the 21st day
of each month. Such interest will be calculated monthly and will accrue daily
on the basis of the actual number of days elapsed and a year of 365 days.
Interest on RBUSBR Loans shall be paid in US currency.

 

LC
Fees

The
Borrower shall pay an LC fee on the date of any payment made by the Bank
pursuant to a drawing under any LC calculated on the amount drawn, based upon
the number of days the LC was outstanding and a year of 365 days. If the total
amount available under any LC has not been drawn prior to the expiry of such
LC, the Borrower shall pay an LC fee calculated on the undrawn portion of such
LC on the expiry date thereof, based upon the number of days the LC was outstanding
and a year of 365 days.

 

LG
Fees

The
Borrower shall pay an LG fee on the date of issuance of any LG calculated on
the face amount of the LG issued and based on the number of days in the term
thereof and a year of 365 days.

 

BAs

The
Borrower shall pay an acceptance fee in advance on the date of issue of each BA
at the applicable rate provided for in this agreement. Acceptance fees shall be
calculated on the face amount of the BA issued and based upon the number of
days in the term thereof and a year of 365 days.

 

Limit
on Interest

The
Borrower shall not be obligated to pay any interest, fees or costs under or in
connection with this agreement in excess of what is permitted by law.

 

Overdue
Payments

Any
amount that is not paid when due hereunder shall, unless interest is otherwise
payable in respect thereof in accordance with the terms of this agreement or
the instrument or contract governing same, bear interest until paid at the rate
of RBP plus 5% per annum or, in the case of an amount in US currency, RBUSBR
plus 5% per annum.

 

3

 

Equivalent
Yearly Rates

The
annual rates of interest or fees to which the rates calculated in accordance
with this agreement are equivalent, are the rates so calculated multiplied by
the actual number of days in the calendar year in which such calculation is
made and divided by 365.

 

Time
and Place of Payment

Amounts
payable by the Borrower hereunder shall be paid at the Branch of Account in the
applicable currency. Amounts due on a day other than a Business Day shall be
deemed to be due on the Business Day next following such day. Interest and fees
payable under this agreement are payable both before and after any or all of
default, maturity date, demand and judgement.

 

EXCHANGE RATE FLUCTUATIONS

If,
for any reason, the amount of Borrowings outstanding under any facility, when
converted to the Equivalent Amount in Canadian currency, exceeds the amount
available under such facility, the Borrower shall immediately repay such excess
or shall secure such excess to the satisfaction of the Bank.

 

INCREASED COSTS

The
Borrower shall reimburse the Bank for any additional cost or reduction in
income arising as a result of (i) the imposition of, or increase in, taxes on
payments due to the Bank hereunder (other than taxes on the overall net income
of the Bank), (ii) the imposition of, or increase in, any reserve or other
similar requirement, (iii) the imposition of, or change in, any other condition
affecting the Credit Facilities imposed by any applicable law or the
interpretation thereof.

 

EVIDENCE OF INDEBTEDNESS

The
Bank shall open and maintain at the Branch of Account accounts and records
evidencing the Borrowings made available to the Borrower by the Bank under this
agreement. The Bank shall record the principal amount of each Borrowing, the
payment of principal and interest and all other amounts becoming due to the
Bank under this agreement.

 

The
Bank’s accounts and records constitute, in the absence of manifest error,
conclusive evidence of the indebtedness of the Borrower to the Bank pursuant to
this agreement.

 

The
Borrower authorizes and directs the Bank to automatically debit, by mechanical,
electronic or manual means, any bank account of the Borrower for all amounts
payable by the Borrower to the Bank pursuant to this agreement.

 

GENERAL ACCOUNT

The
Borrower shall establish a current account with the Bank (the “General
Account”) for the conduct of the Borrower’s day-to-day banking business. If the
balance in the General Account:

 

(a)                                  is a credit, the Bank may apply, at any time
in its discretion, the amount of such credit or part thereof, rounded to the
nearest $10,000 in Canadian currency or US currency, as applicable, as a
repayment of Borrowings outstanding by way of RBP Loans or RBUSBR Loans, as
applicable, under Facilities (1) & (2), or

 

(b)                                 is a debit, the Bank may, subject to
availability, make available a Borrowing by way of an RBP Loan or RBUSBR Loans,
as applicable, under Facilities (1) & (2) in an amount, rounded to the nearest
$10,000 in Canadian currency or US currency, as applicable, as is required to
place the General Account at not less than a zero balance.

 

CONDITIONS PRECEDENT

The
availability of any Borrowing is conditional upon:

 

(a)                                  the receipt of a duly executed copy of this
agreement in form and substance satisfactory to the Bank and reviewed by its
solicitors, Bull Housser and Tupper;

 

(b)                                 the receipt of the security provided for
herein, in form and substance satisfactory to the

 

4

 

Bank,
registered as required to perfect and maintain the security created thereby and
such certificates, authorizations, resolutions and legal opinions as the Bank
may reasonably require;

 

(c)                                  the receipt and review, to the satisfaction
of the Bank, of the US Credit Agreement;

 

(d)                                 there being no material adverse change in
financial condition;

 

(e)                                  the representations and warranties being true
and correct;

 

(f)                                    the satisfactory execution, registration and
receipt of documentation, including all legal opinions, copies of all necessary
corporate authorizations, documents etc. as required;

 

(g)                                 no event of default by the Borrower or
Guarantors under any credit agreement will have occurred or be continuing at
the time of, or after giving effect to, any Borrowing hereunder; and

 

(h)                                 the receipt and approval of such financial
and other information or documents relating to the Borrower and Guarantors as
the Bank may reasonably require, in its sole discretion.

 

SECURITY

Security
for the Borrowings and all other obligations of the Borrower to the Bank shall
include:

 

(a)                                  Guaranty and Subordination Agreement for
$25,000,000 provided by Best Buy Co., Inc. (a “Guarantor”);

 

(b)                                 Guaranty and Subordination Agreement for
$25,000,000 provided by Best Buy Stores, L.P. (a “Guarantor”).

 

REPRESENTATIONS AND WARRANTIES

The
Borrower represents and warrants to the Bank which representations and
warranties are deemed to be repeated as at the time of each Borrowing hereunder
that:

 

(a)                                  it is a corporation duly incorporated,
validly existing and duly registered or qualified to carry on business in all
jurisdictions where it carries on business, including in the Province of
British Columbia;

 

(b)                                 the execution, delivery and performance by it
of this agreement have been duly authorized by all necessary actions and do not
violate its constating documents or any Applicable Laws or agreements to which
it is subject or by which it is bound;

 

(c)                                  no event has occurred which constitutes, or
which, with notice, lapse of time, or both, would constitute, a breach of any
covenant or other term or condition of this agreement or any security agreement
given in connection therewith.

 

(d)                                 its most recent consolidated financial
statements provided to the Bank fairly present its financial position as of the
date thereof and its results of operations and cash flows for the fiscal period
covered thereby, and since the date of such financial statements, there has
occurred no material adverse change in its business or financial condition;

 

(e)                                  there is no claim, action, prosecution or
other proceeding of any kind pending or threatened against it or any of its
assets or properties before any court or administrative agency which relates to
any non-compliance with any Environmental Law or any Release from its lands of
a Contaminant into the natural environment or which, if adversely determined,
might have a material adverse effect upon its financial condition or operations
or its ability to perform its obligations under this agreement or any of the

 

5

 

Bank’s
security, and there are no circumstances of which it is aware which might give
rise to any such proceeding which it has not fully disclosed to the Bank;

 

(f)                                    it has good and marketable title to all of
its properties and assets, free and clear of any encumbrances, other than as
may be provided for herein;

 

(g)                                 it is in compliance in all material respects
with all Applicable Laws including, without limitation, all Environmental Laws;

 

(h)                                 it possesses all licenses, patents, trade
marks, service marks and copyrights, free from material restrictions, that are
necessary for the ownership, maintenance and operation of its assets and
businesses and it is not in violation of any rights of others with respect to
any of the foregoing;

 

(i)                                     it has filed all material tax returns which
were required to be filed by it, paid or made provision for payment of all
taxes and Potential Prior-Ranking Claims (including interest and penalties)
which are due and payable, and provided adequate reserves for payment of any
tax, the payment of which is being contested.

 

REPORTING COVENANTS

The
Borrower and Guarantors covenant and agree with the Bank, while this agreement
is in effect, to provide the Bank with:

 

(a)                                  Quarterly: unaudited consolidated financial
statements for the Borrower within 60 days of each of the first three fiscal
quarters of each fiscal year;

 

(b)                                 Quarterly: unaudited consolidated financial
statements for Best Buy Co., Inc. within 60 days of each of the first three
fiscal quarters of each fiscal year;

 

(c)                                  Quarterly: within 60 days after the close of
each of the first three fiscal quarters of the fiscal year of each Guarantor,
an officer’s compliance certificate, to include financial covenant calculations
pertaining to the US Credit Agreement, stating that as of the close of such
fiscal quarter no default or event of default had occurred and was continuing;

 

(d)                                 Annually: within 120 days after the close of
each of the Guarantor’s fiscal years, an officer’s compliance certificate, to
include financial covenant calculations pertaining to the US Credit Agreement,
stating that as of the close of such fiscal quarter no default or event of
default had occurred and was continuing;

 

(e)                                  Annually: unaudited consolidated financial
statements for the Borrower, within 120 days of each fiscal year end;

 

(f)                                    Annually: audited consolidated financial
statements for Best Buy Co., Inc., within 120 days of each fiscal year end; and

 

(g)                                 Such other financial and operating statements
and reports as and when the Bank may reasonably require.

 

GENERAL COVENANTS

The
Borrower covenants and agrees with the Bank, while this agreement is in effect:

 

(a)                                  to pay all sums of money when due by it under
this agreement;

 

(b)                                 to provide the Bank with prompt written
notice of any event which constitutes, or which, with notice, lapse of time, or
both, would constitute a breach of any covenant or other term or condition of
this agreement or any security agreement given in connection

 

6

 

therewith;

 

(c)                                  to keep its assets fully insured against such
perils and in such manner as would be customarily insured by companies carrying
on a similar business or owning similar assets;

 

(d)                                 if the Borrower owns any commercial buildings
located in Metropolitan Vancouver, the Lower Fraser Valley, Metropolitan
Victoria or Saanich Peninsula, then, in addition to (c) above, the Borrower
shall insure and keep fully insured such commercial buildings against risk of
earthquake;

 

(e)                                  to file all material tax returns which are to
be filed by it from time to time, to pay or make provision for payment of all
taxes (including interest and penalties) and Potential Prior-Ranking Claims
when due, and to provide adequate reserves for the payment of any tax, the
payment of which is being contested;

 

(f)                                    to comply in all material respects with all
Applicable Laws including, without limitation, all Environmental Laws;

 

(g)                                 not to, without the prior written consent of
the Bank, grant, create, assume or suffer to exist any mortgage, charge, lien,
pledge, security interest or other encumbrance affecting any of its properties,
assets or other rights;

 

(h)                                 not to, without the prior written consent of
the Bank, sell, transfer, convey, lease or otherwise dispose of any of its
properties or assets other than in the ordinary course of business and on
commercially reasonable terms;

 

(i)                                     except as required under section 5.25 of
the US Credit Agreement, not to, without the prior written consent of the Bank,
guarantee or otherwise provide for, on a direct, indirect or contingent basis,
the payment of any monies or performance of any obligations by any other
Person, except as may be provided for herein;

 

(j)                                     to provide the Bank with a minimum of 30
days’ prior written notice of any intention to merge, amalgamate, or otherwise
enter into any other form of business combination with any other Person;

 

(k)                                  to provide the Bank with prompt written
notice of any non-compliance by the Borrower with any Environmental Laws or any
Release from the land of the Borrower of a Contaminant into the natural
environment and to indemnify and save harmless the Bank from all liability of
loss as a result of an Environmental Activity or any non-compliance with any
Environmental Law;

 

(l)                                     to permit the Bank or its representatives,
from time to time, to visit and inspect the Borrower’s premises, properties and
assets and examine and obtain copies of the Borrower’s records or other
information and discuss the Borrower’s affairs with the auditors, counsel and
other professional advisers of the Borrower;

 

(m)                               to remain a wholly owned subsidiary, either directly or indirectly, of
Best Buy Co., Inc. at all times; and

 

(n)                                 to notify the Bank within 5 days after
receipt of any demand for a guarantee from the Borrower under the US Credit
Agreement.

 

Nothing contained in the foregoing Covenants sections shall limit any
right of the Bank under this agreement to terminate or demand payment of, or
cancel or restrict availability of any unutilized portion of, any demand or
other discretionary facility made available under this agreement.

 

7

 

The Borrower and Best Buy Co., Inc. covenant and agree with the Bank,
while this agreement is in effect:

 

(a)          to notify the Bank within 5 days after any acceleration of indebtedness
owing by Best Buy Co., Inc. under the US Credit Agreement;

 

(b)         to notify the Bank of any demand for security against the assets of
Best Buy Co., Inc. and/or Best Buy Stores, L.P. by the lenders under the US
Credit Agreement within 5 days of the making of such demand; and

 

(c)          to provide to the Bank a copy of all future amendments to the US Credit
Agreement within 15 days of execution thereof by the Guarantors.

 

Nothing contained in the
foregoing Covenants sections shall limit any right of the Bank under this
agreement to terminate or demand payment of, or cancel or restrict availability
of any unutilized portion of, any demand or other discretionary facility made
available under this agreement.

 

SUCCESSORS AND ASSIGNS

This
agreement shall be binding upon and enure to the benefit of the parties and
their respective successors and permitted assigns.

 

The
Bank may assign all or part of its rights and obligations under this agreement
to any Person. The rights and obligations of the Borrower under this agreement
may not be assigned without the prior written consent of the Bank.

 

The
Bank may disclose to potential or actual assignees confidential information
regarding the Borrower (including, any such information provided by the
Borrower to the Bank) and shall not be liable for any such disclosure.

 

GENERAL

 

Expenses

The
Borrower agrees to pay all fees (including legal fees), costs and expenses
incurred by the Bank in connection with the preparation, negotiation and
documentation of this agreement and the security provided for herein and the
operation or enforcement of this agreement and the security provided for
herein.

 

Review

The
Bank may conduct periodic reviews of the affairs of the Borrower, as and when
determined by the Bank, for the purpose of evaluating the financial condition
of the Borrower. The Borrower shall make available to the Bank such financial
statements and other information and documentation as the Bank may reasonably
require and shall do all things reasonably necessary to facilitate such review
by the Bank.

 

Potential
Prior-Ranking Claims

The
Borrower hereby grants its consent (such grant to remain in force as long as
this agreement is in effect or any Borrowings are outstanding) to any Person
having information relating to any Potential Prior-Ranking Claim arising by any
law, statute, regulation or otherwise and including, without limitation, claims
by or on behalf of government to release such information to the Bank at any time
upon its written request for the purpose of assisting the Bank to evaluate the
financial condition of the Borrower.

 

Set
Off

The
Bank is authorized, but not obligated, at any time, to apply any credit
balance, whether or not then due, to which the Borrower is entitled on any
account in any currency at any branch or office of the Bank

 

8

 

in or towards satisfaction of the obligations of the Borrower due to
the Bank under this agreement. The Bank is authorized to use any such credit
balance to buy such other currencies as may be necessary to effect such
application.

 

Non-Merger

The
provisions of this agreement shall not merge with any security provided to the
Bank, but shall continue in full force for the benefit of the parties hereto.

 

Amendments
and Waivers

No
amendment or waiver of any provision of this agreement will be effective unless
it is in writing signed by the Borrower and the Bank. No failure or delay, on
the part of the Bank, in exercising any right or power hereunder or under any
security document shall operate as a waiver thereof.

 

Severability

If
any provision of this agreement is or becomes prohibited or unenforceable in
any jurisdiction, such prohibition or unenforceability shall not invalidate or
render unenforceable the provision concerned in any other jurisdiction nor
invalidate, affect or impair any of the remaining provisions of this agreement.

 

Life
Insurance Options

The
Borrower acknowledges that Borrowings are
not  insured under the Bank’s Business Loan Insurance Program.

 

Judgement
Currency

If
for the purpose of obtaining judgement in any court in any jurisdiction with
respect to this agreement, it is necessary to convert into the currency of such
jurisdiction (the “Judgement Currency”) any amount due hereunder in any
currency other than the Judgement Currency, then conversion shall be made at
the rate of exchange prevailing on the Business Day before the day on which
judgement is given. For this purpose “rate of exchange” means the rate at which
the Bank would, on the relevant date, be prepared to sell a similar amount of
such currency in the Toronto foreign exchange market, against the Judgement
Currency, in accordance with normal banking procedures.

 

In the event that there is a change in the rate of exchange prevailing
between the Business Day before the day on which judgement is given and the
date of payment of the amount due, the Borrower will, on the date of payment,
pay such additional amounts as may be necessary to ensure that the amount paid
on such date is the amount in the Judgement Currency which, when converted at
the rate of exchange prevailing on the date of payment, is the amount then due
under this agreement in such other currency together with interest at RBP and
expenses (including legal fees on a solicitor and client basis). Any additional
amount due from the Borrower under this section will be due as a separate
debt and shall not be affected by judgement being obtained for any other sums
due under or in respect of this agreement.

 

Governing
Law

This
agreement shall be construed in accordance with and governed by the laws of the
Province of British Columbia and of Canada applicable therein.

 

Whole
Agreement

This
agreement, the security and any other written agreement delivered pursuant to
or referred to in this agreement constitute the whole and entire agreement
between the parties in respect of the Credit Facilities. There are no verbal
agreements, undertakings or representations in connection with the Credit
Facilities.

 

Joint
and Several

Where
more than one Person is liable as Borrower [or Guarantor] for any obligation
under this agreement, then the liability of each such Person for such
obligation is joint and several with each other such Person.

 

9

 

Counterparts
and Facsimile Signatures

This
agreement may be executed in any number of counterparts and all such
counterparts shall for all purposes constitute one and the same agreement
binding on all the parties hereto notwithstanding that all parties are not
signatories to the same counterpart, provided that each party has signed at
least one counterpart. This agreement may be executed and delivered by
facsimile transmission and the parties hereto may rely upon all such facsimile
signatures as though such facsimile signatures were original signatures.

 

Time

Time
shall be of the essence in all provisions of this agreement.

 

Acceptance

This
offer is open for acceptance until March 19,
2004,  after which date it will be null and void, unless extended
in writing by the Bank.

 

Please
confirm your acceptance of this agreement by signing the attached copy of this
letter in the space provided below and returning it to the undersigned.

 

	
  Yours
  truly,

  
	
   

  
	
  /s/
  Keith Richmond

  	
   

  

 

We
acknowledge and accept the foregoing terms and conditions as of March 9,
2004.

 

	
  Best Buy
  Canada Ltd./Magasins Best Buy Ltee

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Kevin Layden

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  
	
   

  
	
  I/We have authority to
  bind the corporation.

  
	
   

  
	
  We acknowledge and confirm
  our agreement with the foregoing terms and conditions, as Guarantor, as of
  March 9, 2004.

  
	
   

  
	
  Best Buy Co., Inc.

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Ryan D. Robinson

  	
   

  	
   

  
	
  Name: Ryan D. Robinson

  
	
  Title: V.P.

  
	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  
	
   

  
	
  I/We have authority to
  bind the corporation.

  
									

 

10

 

	
  We acknowledge and confirm
  our agreement with the foregoing terms and conditions, as Guarantor, as of
  March 9, 2004.

  
	
   

  
	
  Best Buy Stores, L.P.

  
	
  By its General Partner BBC Property Co.

  
	
   

  
	
  By:

  	
  /s/ Ryan D. Robinson

  	
   

  
	
  Name: Ryan D. Robinson

  
	
  Title: V.P.

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  
	
   

  
	
  I/We have authority to
  bind partnership.

  
					

 

11

 

Schedule “A”
to the agreement dated March 9, 2004 between Best Buy Canada Ltd./Magasins
Best Buy Ltee, as Borrower, and Royal Bank of Canada, as the Bank.

 

DEFINITIONS

 

For
the purpose of this agreement, the following terms and phrases shall have the
following meanings:

 

“Applicable Laws” means, with respect to any Person, property, transaction or event, all
present or future Applicable Laws, statutes, regulations, rules, orders, codes,
treaties, conventions, judgements, awards, determinations and decrees of any
governmental, regulatory, fiscal or monetary body or court of competent jurisdiction
in any applicable jurisdiction;

 

“Bankers’ Acceptance” or “BA” mean
a bill of exchange, including a depository bill issued in accordance with the Depository Bills and Notes Act (Canada),
drawn on the Bank by, and payable to the order of, the Borrower which have been
accepted by the Bank;

 

“Branch of Account” means the branch of the Bank at which the Borrower’s accounts are
maintained. As at the date of this agreement, the “Branch of Account” is the Bank’s branch at 1025 West Georgia
Street, Vancouver, B.C.;

 

“Business Day” means a day, excluding Saturday, Sunday and any other day which shall
be a legal holiday or a day on which banking institutions are closed in the
province of the Branch of Account;

 

“Contaminant” includes, without limitation, any pollutant, dangerous substance,
liquid waste, industrial waste, hazardous material, hazardous substance or
contaminant including any of the foregoing as defined in any Environmental Law;

 

“Environmental Activity” means any activity, event or circumstance in
respect of a Contaminant, including, without limitation, its storage, use,
holding, collection, purchase, accumulation, assessment, generation,
manufacture, construction, processing, treatment, stabilization, disposition,
handling or transportation, or its Release into the natural environment,
including movement through or in the air, soil, surface water or groundwater;

 

“Environmental Laws” means all Applicable Laws relating to the
environment or occupational health and safety, or any Environmental Activity;

 

“Equivalent Amount” means, with respect to an amount of any currency, the amount of any
other currency required to purchase that amount of the first mentioned currency
through the Bank in Toronto, in accordance with normal banking procedures;

 

“GAAP” means, generally accepted accounting principles in effect from time to
time in Canada applied in a consistent manner from period to period;

 

“Letter of Credit” or “LC” means a
documentary credit issued by the Bank on behalf of the Borrower for the purpose
of paying suppliers of goods;

 

“Letter of Guarantee” or “LG” means
a documentary credits issued by the Bank on behalf of the Borrower for the
purpose of providing security to a third party that the Borrower or a person
designated by the Borrower will perform a contractual obligation owed to such
third party.

 

“Person” includes an individual, a partnership, a joint venture, a trust, an
unincorporated organization, a company, a corporation, an association, a
government or any department or agency thereof, and any other incorporated or
unincorporated entity;

 

“Potential Prior-Ranking Claims” means all amounts owing or required to be
paid, where the failure to

 

 

pay
any such amount could give rise to a claim pursuant to any law, statute,
regulation or otherwise, which ranks or is capable of ranking in priority to
the Bank’s security or otherwise in priority to any claim by the Bank for
repayment of any amounts owing under this agreement;

 

“RBP” and
“Royal Bank Prime” each means the
annual rate of interest announced by the Bank from time to time as being a
reference rate then in effect for determining interest rates on commercial
loans made in Canadian currency in Canada;

 

“RBUSBR” and “Royal Bank US Base Rate” each
means the annual rate of interest announced by the Bank from time to time as a
reference rate then in effect for determining interest rates on commercial
loans made in US currency in Canada;

 

“Royal Bank Prime Acceptance Fee” or “RBPAF” means
the annual rate announced by the Bank from time to time as a reference rate
then in effect for determining fees on BAs.

 

“Release” includes discharge, spray, inject, inoculate, abandon, deposit, spill,
leak, seep, pour, emit, empty, throw, dump, place and exhaust, and when used as
a noun has a similar meaning;

 

“US” means
United States of America;

 

“US Credit Agreement” defined as the amended and restated credit
agreement dated as of March 21, 2002 by and between Best Buy Co., Inc.,
the lenders from time to time party thereto, and U.S. Bank National
Association, as agent for the lenders party thereto, as amended from time to
time.

 

2

 

Schedule “B”
to the agreement dated March 9, 2004 between Best Buy Canada Ltd./Magasins
Best Buy Ltee, as Borrower, and Royal Bank of Canada, as the Bank.

 

NOTICE REQUIREMENTS

 

	
  Amount

  	
   

  	
  Prior
  Notice

  
	
   

  	
   

  	
   

  
	
  Under $10,000,000,
  Canadian or US currency

  	
   

  	
  By 10:00 a.m. on the day
  of Borrowing

  
	
   

  	
   

  	
   

  
	
  $ 10,000,000 up to but not
  including $25,000,000, Canadian or US currency

  	
   

  	
  By 10:00 a.m. 1 Business
  Day prior to the day of

  Borrowing

  

 

3

 

Schedule “C”
to the agreement dated March 9, 2004 between Best Buy Canada Ltd./Magasins
Best Buy Ltee, as Borrower, and Royal Bank of Canada, as the Bank.

 

BORROWING CONDITIONS

 

Borrowings
made otherwise than by way of RBP Loans or RBUSBR Loans will be subject to the
following terms and conditions:

 

BAs:

 

(a)                                  BAs shall be issued and mature on a Business
Day and shall be issued in minimum face amounts of $500,000 or such larger
amount as is a whole multiple of $100,000 for terms of not less than 30 and not
more than 180 days;

 

(b)                                 the Bank may, in its sole discretion, refuse
to accept the Borrower’s drafts or limit the amount of any BA issue at any
time;

 

(c)                                  notwithstanding any other provision of this
agreement, the Borrower shall indemnify the Bank against any loss, cost or
expense incurred by the Bank if any BA is repaid, prepaid, converted or
cancelled other than on the maturity date of such BA;

 

(d)                                 any BA issued under a term facility must have
a maturity on or before the maturity date of the term facility, unless
otherwise agreed by the Bank; and

 

(e)                                  prior to the issue of any BA the Borrower
shall execute the Bank’s standard form of undertaking and agreement in respect
of BAs. If there is any inconsistency at any time between the terms of this
agreement and the terms of the Bank’s standard form of undertaking and
agreement, the terms of this agreement shall govern.

 

LCs or LGs:

 

(a)                                  each LC and LG shall expire on a Business Day
and shall have a term of not more than 365 days;

 

(b)                                 at least 2 Business Days prior to the issue
of an LC or LG, the Borrower shall execute a duly authorized application with
respect to such LC or LG and each LC and LG shall be governed by the terms and
conditions of the relevant application for such contract;

 

(c)                                  an LC or LG may not be revoked prior to its
expiry date unless the consent of the beneficiary of the LC or LG has been
obtained; and

 

(d)                                  if there is any inconsistency at any time
between the terms of this agreement and the terms of the application for LC or
LG, the terms of the application for LC or LG shall govern.

 

 

Schedule “D” to the agreement dated March 9, 2004 between
Best Buy Canada Ltd./Magasins Best Buy Ltee, as Borrower, and Royal Bank of
Canada, as the Bank.

 

FEF CONTRACTS SCHEDULE

 

FEF Contract Definitions

 

“Foreign Exchange Forward Contract” or “FEF
Contract” means a currency exchange transaction or agreement or any
option with respect to any such transaction now existing or hereafter entered
into between the Borrower and the Bank;

 

Conditions Applicable to FEF Contracts

 

At
the Borrower’s request, the Bank may agree to enter into FEF Contracts with the
Borrower from time to time. The Borrower acknowledges that the Bank makes no
formal commitment herein to enter into any FEF Contract and the Bank may, at
any time and at all times, in its sole and absolute discretion, accept or
reject any request by the Borrower to enter into a FEF Contract. If the Bank
does enter into a FEF Contract with the Borrower, it will do so subject to the
following:

 

(a)                                  the Borrower shall promptly issue or
countersign and return a confirmation or acknowledgement of the terms of each
such FEF Contract as required by the Bank;

 

(b)                                 the Borrower shall, if required by the Bank,
promptly enter into a Foreign Exchange and Options Master Agreement or such
other agreement in form and substance satisfactory to the Bank to govern the
FEF Contract(s);

 

(c)                                  in the event of demand for payment under the
agreement of which this schedule forms a part, the Bank may terminate all
or any FEF Contracts. If the agreement governing any FEF Contract does not
contain provisions governing termination, any such termination shall be
effected in accordance with customary market practice. The Bank’s determination
of amounts owing under any terminated FEF Contract shall be conclusive in the
absence of manifest error. The Bank shall apply any amount owing by the Bank to
the Borrower on termination of any FEF Contract against the Borrower’s
obligations to the Bank under the agreement and any amount owing to the Bank by
the Borrower on such termination shall be added to the Borrower’s obligations
to the Bank under the agreement and secured by the Bank’s security;

 

(d)                                 the Borrower shall pay all required fees in
connection with any FEF Contracts and indemnify and hold the Bank harmless
against any loss, cost or expense incurred by the Bank in relation to any FEF
Contract;

 

(e)           any
rights of the Bank herein in respect of any FEF Contract are in addition to and
not in limitation of or substitution for any rights of the Bank under any
agreement governing such FEF Contract. In the event that there is any
inconsistency at any time between the terms hereof and any agreement governing
such FEF Contract, the terms of such agreement shall prevail.

 

 

GUARANTY AND SUBORDINATION AGREEMENT

(General Guaranty)

 

To:                              ROYAL BANK OF CANADA:

 

FOR VALUE RECEIVED, and in order to induce Royal Bank of Canada (the
“Bank”) to grant, extend or continue credit or other financial accommodations
to

 

Best Buy Canada Ltd./Magasins Best Buy Ltee (the “Customer”),

 

the undersigned (the “Guarantor”) unconditionally and irrevocably
guarantees to the Bank and its successors and assigns, the complete and
punctual payment when due (whether at the stated maturity or earlier by
acceleration or otherwise) of all Liabilities (as defined in the next sentence)
at any time owing by the Customer to the Bank. “Liabilities” as used in this
Guaranty means all indebtedness, obligations, liabilities and other amounts
due, of whatever nature, of the Customer to the Bank arising under or in
connection with the credit facilities described in and to be provided pursuant
to the terms of the offer letter dated March 9, 2004 (as the same may be
amended, extended, renewed, restated, superseded or replaced from time to time,
the “Cdn Credit Agreement”) given by the Bank to the Customer, as such credit
facilities may from time to time be amended, extended, renewed, restated,
superseded or replaced with the acknowledgement, confirmation or consent of the
Guarantor (collectively the “Credit Facilities”),whether now existing or
hereafter incurred, whether matured or unmatured, whether absolute or
contingent, whether characterized as principal, premium, interest, additional
interest, fees, expenses or otherwise and whether the Customer is bound alone
or with any others or as principal or as surety.

 

PROVIDED, however, that, regardless of the amount of the Liabilities of
the Customer to the Bank, the liability of the Guarantor hereunder is limited
to the greater of (a) the maximum liability that the Guarantor can incur
hereunder without rendering itself insolvent and (b) the amount in United
States Dollars of the value received by the Guarantor as a result of the
financial accommodations made available by the Bank to the Customer. The terms
“value” and “insolvent”, as used in this proviso shall have the same meanings
as in 11 U.S.C. §§ 548(a)(2)(A) and (B), respectively. If for any reason
this Guaranty would be otherwise avoidable as a fraudulent transfer (whether
under state law or the United States Bankruptcy Code), then the terms “value”
and “insolvent” as used herein shall be defined and the limitation on the
liability of the Guarantor shall be deemed to operate in such a manner as to
prevent this Guaranty from being avoided as a fraudulent transfer while
preserving the liability of the Guarantor to the fullest extent legally
permissible. Notwithstanding anything to the contrary contained herein, the
maximum liability of Guarantor under this Guaranty shall be limited to Cdn.
$25,000,000 plus interest thereon from the date of demand for payment at a rate
equal to “Royal Bank Prime” plus 5% per annum, both before and after default
and judgment. The term “Royal Bank Prime” means the annual rate of interest
announced by the Bank from time to time as being a reference rate then in
effect for determining interest rates on commercial loans made in Canadian
currency in Canada, and “Cdn. $” means dollars of lawful currency of Canada.

 

 

This Guaranty may be terminated only upon written notice to the Bank
and only with respect to Liabilities thereafter incurred or arising. Any such
termination shall not affect the liability of the Guarantor under this Guaranty
with respect to Liabilities created or incurred prior to the effective date of
such termination. Without limiting the foregoing, any such termination shall
not relate to any approval given, commitment made or liability incurred by the
Bank to or for the benefit of the Customer prior to the effective date of such
termination even though not then matured, and upon any such termination, the
Guarantor shall nevertheless remain liable with respect to all Liabilities, and
the performance of all duties, created or arising theretofore or based on a
commitment theretofore entered into or any approval, commitment or liability
theretofore given, made or incurred to or for the benefit of the Customer to
the full extent of the Guarantor’s liability therefor as provided herein.

 

THE GUARANTOR FURTHER AGREES WITH THE BANK AS FOLLOWS:

 

1.                                       Certain
Rights of Bank.  At any time and
from time to time (and whether once or more than once), without the necessity
of any reservation of rights against the Guarantor and without notice to,
demand on or further assent by the Guarantor or any other person:

 

(a)                                  any collateral
security (which term as used in this Guaranty includes other guaranties) held
by or available to the Bank in respect of the Liabilities or in respect of any
guaranty of the Liabilities may be sold, exchanged, waived, subordinated,
surrendered or released, in whole or in part and in any order;

 

(b)                                 any of the Liabilities
or the obligations of any other guarantor of the Liabilities may be changed,
renewed, extended, continued, accelerated, surrendered, compromised,
subordinated, waived or released, in whole or in part, or any default with
respect thereto waived or any demand for payment with respect thereto
rescinded;

 

(c)                                  the Bank may set off,
refrain from setting off or release, in whole or in part, any balance of any
and all deposits (general or special) or credits on its books in favour of the
Customer or of any such guarantor, may take or refrain from taking or
perfecting any security interest in any collateral security and may exercise or
refrain from exercising any right against the Customer or any other person;

 

(d)                                 the Bank may extend or
refrain from extending further credit or financial accommodations in any manner
whatsoever to, may accept compositions from and may otherwise generally deal
with the Customer and any other person and with any collateral security as the
Bank may see fit; and

 

(e)                                  the Bank may apply
all moneys at any time received from the Customer or any other person or from
any collateral security in such manner, in such amounts and against such part
of the Liabilities as the Bank considers best and change any such application
in whole or in part as the Bank may see fit.

 

All of these actions may be taken without in any way limiting,
diminishing or affecting the Guarantor’s liability under this Guaranty and
without imposing any obligation of trust on the Bank, and no loss of or in
respect of any collateral security, whether caused by the fault of the

 

2

 

Bank or otherwise, shall in any way limit, diminish or affect the
Guarantor’s liability under this Guaranty.

 

2.                                       Liability
of Guarantor Unconditional.  This
Guaranty is a guaranty of payment and not merely of collection. The Guarantor’s
liability under this Guaranty is absolute and unconditional and shall not be
limited, diminished or affected by the happening from time to time of any
event, including (but not limited to) any event described in paragraph 1 of
this Guaranty and any of the following events, whether or not any such event
occurs with notice to or with the consent of the Guarantor or once or more than
once:

 

(a)                                  the waiver,
surrender, compromise, settlement, discharge, release or termination of any or
all of the Liabilities;

 

(b)                                 the failure to give any notice to the
Customer;

 

(c)                                  the extension of the time for payment or
performance of any of the Liabilities;

 

(d)                                 the change (whether or not material) of
the terms of any document relating to the Liabilities (a “Document”);

 

(e)                                  the taking of or failure to take any
action referred to in any Document;

 

(f)                                    the illegality, invalidity,
unenforceability (including, but not limited to, by reason of any statute of
limitations or automatic stay) or irregularity of any of the Liabilities or any
Document;

 

(g)                                 any failure, omission, delay or lack of
diligence on the part of the Bank in the enforcement, assertion or exercise of
any right, power or remedy conferred on the Bank under any Document, or the
inability of the Bank to enforce any provision of any Document for any reason,
or any other act or omission on the part of the Bank, including (but not
limited to) failure by the Bank to perfect or protect any lien or security
interest granted to the Bank, to commence and prosecute any action to collect
the Liabilities or to enforce or collect any judgment obtained by the Bank;

 

(h)                                 the dissolution or
liquidation of the Customer, the sale or other disposition of all or
substantially all of the assets of the Customer, the marshalling of assets and liabilities of the Customer or the
existence of receivership, insolvency, assignment for the benefit of creditors,
bankruptcy, reorganization, arrangement, adjustment, composition or other
similar proceedings affecting the Customer; and

 

(i)                                     any other event,
action or circumstance that would, in the absence of this subparagraph (i),
result in the release or discharge of the Guarantor
from the performance or observance of any obligation, covenant or agreement
contained in this Guaranty.

 

3.                                       Waiver
of Notice.  The Guarantor waives all
notices of the creation, renewal, extension or accrual of any of the
Liabilities and notice or proof of reliance by the Bank on this Guaranty or

 

3

 

acceptance of this Guaranty. The Liabilities shall conclusively be
considered to have been created, contracted or incurred in reliance on this
Guaranty, and all dealings between the Customer and the Bank shall likewise be
conclusively presumed to have been had or consummated in reliance on this Guaranty.
The Guarantor also waives (to the extent permitted by applicable law) all
requirements of notice, presentment, protest or demand on it, the Customer or
any other person, all other notices and demands whatsoever relating to the
Liabilities and any requirement that the Bank file a claim with a court in any
bankruptcy or similar proceedings of the Customer or first proceed against the
Customer or any other person or first realize on any collateral security held
by it or otherwise exhaust any right, power or remedy under any Document or
against the Customer or any other person before proceeding against the
Guarantor under this Guaranty. The Bank shall have no responsibility to notify
the Guarantor of the Customer’s financial condition or the Customer’s incurrence
or performance of the Liabilities.

 

4.                                       Continuing
Guaranty.  This Guaranty is a
continuing guaranty, shall not be discharged until performance and payment in
full of all of the Liabilities, payment of all amounts payable by the Guarantor
under this Guaranty and cancellation of this Guaranty provided by the Bank to
the Customer and shall remain in full force and effect notwithstanding any
interruption in the business relations between the Customer and the Bank or any
increase or decrease (including a decrease to zero) from time to time in the
amount of the Liabilities. If demand for, or acceleration of the time for,
payment by the Customer to the Bank of any of the Liabilities is stayed upon
the insolvency, bankruptcy, reorganization or proposed compromise or
arrangement with creditors of the Customer, all Liabilities of which payment or
performance is stayed that would otherwise be subject to demand for payment or
acceleration shall nonetheless be payable by the Guarantor immediately on
demand by the Bank.

 

5.                                       Reinstatement.  This Guaranty shall continue to be
effective, or shall be reinstated, if at any time payment, or any part thereof,
of any of the Liabilities is rescinded or must otherwise be returned by the
Bank for any reason whatsoever (including, but not limited to, the bankruptcy,
insolvency, dissolution, liquidation or reorganization of the Customer or any
other person), all as though such payment had not been received by the Bank.

 

6.                                       Subordination.  All indebtedness, obligations, liabilities
and other amounts due, of whatever nature, of the Customer to the Guarantor
(the “Subordinated Debt”), whether now existing or hereafter incurred, whether
created directly or acquired by the Guarantor by assignment or otherwise,
whether matured or unmatured, whether absolute or contingent, whether
characterized as principal, premium, interest, additional interest, fees,
expenses or otherwise and whether the Customer is bound alone or with any
others or as principal or as surety, shall be subject and subordinate to the
Liabilities, and no payment shall be made or received on account of the
Subordinated Debt until all of the Liabilities have been paid and satisfied.
Notwithstanding the foregoing, indebtedness, obligations, liabilities and other
amounts due from the Customer to the Guarantor with respect to royalty and
licensing fees, expense reimbursements, capital purchases and inventory
purchases (collectively, “Trade Debt”) shall not be considered Subordinated
Debt. All moneys received by the Guarantor in respect of the Subordinated Debt
contrary to the foregoing shall be received in trust for the Bank and paid over
to the Bank. This subordination is independent of the guaranty provided in this
Guaranty and shall remain in full force and effect for so long as the Guarantor
has any liability under this

 

4

 

Guaranty. Assets of the Customer held by the Guarantor, whether in the
form of deposits, collateral security or otherwise, except for assets held for
the purpose of paying Trade Debt then owing, shall not at any time be set off
against the Subordinated Debt but shall be held in trust for the Bank. The
Guarantor hereby undertakes to execute such additional documents and to do such
additional acts as may be necessary or desirable (in the reasonable opinion of
the Bank) in order to carry out, complete or perfect this subordination.

 

7.                                       Limits
on Subrogation.  No payment by the
Guarantor pursuant to any provision of this Guaranty or other satisfaction of
the Guarantor’s liability under this Guaranty shall entitle the Guarantor, by
subrogation or otherwise, to any right or remedy against the Customer until
after the indefeasible payment in full of the Liabilities.

 

8.                                       Costs,
Expenses, Etc.  The Guarantor agrees
to pay on demand all losses, costs, expenses (including, but not limited to,
the actual amount of attorneys’ fees) and damages incurred by the Bank in
connection with the preparation of this Guaranty or any amendment, waiver or
consent with respect to this Guaranty, in connection with any rescission or
return referred to in paragraph 5 of this Guaranty, in enforcing or attempting
to enforce this Guaranty or any other guaranty of the Liabilities or in
protecting the Bank’s rights under this Guaranty or any other guaranty of the
Liabilities following any default by the Guarantor under this Guaranty, whether
the Bank’s rights are enforced by suit or otherwise.

 

9.                                       Obligations
Additional.  This Guaranty and the
Guarantor’s liability under this Guaranty are in addition to and not in
substitution for:

 

(a)           any other collateral security, by
whomsoever given, at any time held by the Bank and

 

(b)          any present or future obligation of
the Guarantor or any other obligor to the Bank incurred otherwise than under
this Guaranty,

 

whether the Guarantor or such other obligor is bound with or apart from
the Customer.

 

10.                                 Payments.  All payments under this Guaranty shall be
made to the Bank at such branch, agency or affiliate of the Bank as the Bank
may require, in immediately available funds and without setoff, counterclaim or
deduction of any kind, and shall be made in the lawful currency in which the
Liabilities are payable (“Primary Currency”). Without in any manner limiting
the Guarantor’s obligations contained in the preceding sentence, if any sum is
paid to and received by the Bank under this Guaranty in a currency other than
the Primary Currency (such other currency is called the “Alternative
Currency”), whether by judgment (and notwithstanding the rate of exchange
actually applied in such judgment) or otherwise, the Guarantor’s liability
under this Guaranty shall nevertheless be discharged only to the extent of the
net amount of Primary Currency that the Bank is able in accordance with its
normal banking procedures to purchase with such amount of Alternative Currency.
If the Bank is not able to purchase with such amount of Alternative Currency
sufficient Primary Currency to discharge the Guarantor’s liability under this
Guaranty in full, the Guarantor’s obligations to the Bank with respect to such
difference shall be due as a separate debt and shall not be affected by payment
of or judgment being obtained for any other sums due under this Guaranty.

 

5

 

11.                                 Successors
and Assigns.  This Guaranty shall
inure to the benefit of the Bank and its successors, transferees and assigns
and shall bind the Guarantor and the Guarantor’s heirs, executors,
administrators, legal representatives, successors and assigns; provided,
however, that the Guarantor may not assign its rights or obligations under this
Guaranty without the Bank’s prior written consent. If the Guarantor is a
partnership, the Guarantor’s liability under this Guaranty shall remain in full
force and effect notwithstanding any change in the parties comprising the
partnership and the term “Guarantor” shall include any altered or successive
partnerships, but the predecessor partnerships and their partners shall
continue to be bound under this Guaranty.

 

12.                                 Joint
and Several Obligations.  If this
Guaranty is executed by more than one party, each party’s liability under this
Guaranty shall be joint and several; provided, however, that this Guaranty
shall be construed for all purposes as if a separate, identical agreement
(including the amount of any limitation on the Guarantor’s liability) had been
executed by each party. The Guarantor’s liability under this Guaranty shall not
in any way be changed, reduced or terminated as a result of:

 

(a)                                  any change or
reduction in or termination of the obligations of any other guarantor of the
Liabilities,

 

(b)                                 the death or loss or
diminution of capacity of any other guarantor of the Liabilities or

 

(c)                                  the failure of any
other person to execute this or any other guaranty of the Liabilities.

 

13.                                 Waivers
and Amendments, Cumulative Remedies. 
The Bank shall not be obligated to exercise any right, power or
privilege under this Guaranty, and no failure to exercise and no delay in
exercising, on the part of the Bank, any such right, power or privilege under
this Guaranty shall operate as a waiver thereof, nor shall any single or
partial exercise thereof preclude any other or further exercise thereof or the
exercise of any other right, power or privilege. No notice to or demand on the
Guarantor shall be deemed to be a waiver of the Bank’s right to take further
action without notice or demand as provided herein. No waiver shall be
applicable except in the specific instance for which given or shall in any way
impair the Bank’s rights or the Guarantor’s liability in any other respect or
at any other time, nor in any event shall any modification or waiver of any
provision of this Guaranty be effective unless in writing and signed on behalf
of the Bank. The rights and remedies provided in this Guaranty are cumulative
and are not exclusive of any other right or remedy provided by law, in equity
or under any other agreement or instrument.

 

14.                                 Representations
and Warranties.  The Guarantor
represents and warrants to the Bank that:

 

(a)                                  it is duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
organization;

 

(b)                                 the Guarantor has full
capacity and authority to execute, deliver and perform this Guaranty, and the
execution, delivery and performance of this Guaranty will not:

 

6

 

(i)                                   violate
any law or regulation,

 

(ii)                                violate
any provision of the Guarantor’s organizational documents,

 

(iii)                             violate
or constitute (with due notice or lapse of time or both) a default under any
indenture, agreement, license or other instrument to which the Guarantor is a
party or by which the Guarantor or any of the Guarantor’s properties may be
bound,

 

(iv)                            violate
any order of any court, tribunal or governmental agency binding on the
Guarantor or any of the Guarantor’s properties or

 

(v)                               result
in the creation or imposition of any lien of any nature whatsoever on any of
the Guarantor’s properties or assets;

 

(c)                                  no approval or
consent of, or filing or registration with, any federal, state or local regulatory
authority is required in connection with the execution, delivery and
performance of this Guaranty; and

 

(d)                                 this Guaranty
constitutes the legal, valid and binding obligation of the Guarantor,
enforceable against the Guarantor in accordance with its terms.

 

These representations and
warranties shall survive the execution of this Guaranty.

 

15.                                 Financial
Information.  The Guarantor agrees
to furnish promptly to the Bank copies of the Guarantor’s annual and quarterly
financial statements and such other information relating to the Guarantor’s
business and financial condition as the Bank may from time to time reasonably
request.

 

16.                                 Stamp
Taxes, Etc.  The Guarantor agrees to
indemnify the Bank against any claim or liability for any stamp, excise or other
similar taxes and any penalties or interest with respect thereto that may be
imposed, levied, collected, withheld or assessed by any jurisdiction in
connection with the execution and delivery of this Guaranty, any document
related to this Guaranty or any modification of this Guaranty or any such
document. This covenant shall survive the termination of this Guaranty.

 

17.                                 Withholding
Tax.  Any and all payments by the
Guarantor hereunder shall be made free and clear of, and without deduction for,
any and all present and or future taxes. If the Guarantor is required by law to
deduct any taxes from or in respect of any sum payable hereunder to the Bank,
(a) the sum payable shall be increased by the amount necessary so that after
making all required deductions (including deductions applicable to additional
sums payable under this Section 16) the Bank will receive an amount equal
to the sum it would have received had no such deductions been made; (b) the
Guarantor shall make such deductions; and (c) the Guarantor shall pay the full
amount deducted to the relevant taxing authority or other governmental
authority in accordance with applicable law and promptly forward to the Bank an
official receipt or other documentation acceptable to the Bank evidencing such
payment.

 

7

 

18.                                 Governing
Law, Submission to Jurisdiction. 
This Guaranty and the rights and obligations of the Bank and of the
Guarantor under this Guaranty shall be governed by and construed in accordance
with the laws of the State of Minnesota. For purposes of any suit, action or
proceeding involving this Guaranty or any judgment entered by any court in
respect of such suit, action or proceeding, the Guarantor expressly submits to
the non-exclusive jurisdiction of any Minnesota court of competent jurisdiction
sitting in Minneapolis or St. Paul, Minnesota, and agrees that any order,
process or other paper may be served upon the Guarantor within or without such
court’s jurisdiction by mailing a copy to the Guarantor at the Guarantor’s
address for notices provided in this Guaranty, provided that a reasonable time
for appearance is allowed. The Guarantor irrevocably waives any objection the
Guarantor may now or hereafter have to the laying of venue of any suit, action
or proceeding arising out of or relating to this Guaranty brought in any such
court and further irrevocably waives any claim that any such suit, action or
proceeding brought in any such court has been brought in an inconvenient forum.
Nothing contained in this Guaranty shall affect the Bank’s right to serve legal
process in any other manner permitted by law or to bring any action or
proceeding against the Guarantor or the Guarantor’s property in the courts of
other jurisdictions.

 

19.                                 Severability.  Any provision of this Guaranty that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions of this Guaranty, and any such
prohibition or unenforceability in any jurisdiction shall not invalidate such
provision or render it unenforceable in any other jurisdiction.

 

20.                                 Notices.  Notices and other communications with
respect to this Guaranty shall be in writing (including telecommunications) and
made or delivered to the party to which such notice or other communication is
required or permitted to be given or made at the address(es) shown on the
signature page of this Guaranty or at such other address as shall be designated
by such party in a written notice to the other party given in accordance with
this paragraph and shall be considered delivered on receipt if telecommunicated
or delivered by messenger or courier service or five days after mailing,
postage prepaid. All mailed notices shall be by certified or registered mail.

 

21.                                 Headings.  The headings used in this Guaranty are for
convenience only and shall not affect the construction of this Guaranty. 

 

22.                                 Waiver
of Jury Trial.  EACH PARTY TO THIS GUARANTY, AND BY ITS ACCEPTANCE OF
THIS GUARANTY THE BANK, KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY
RIGHT TO A JURY TRIAL OF ANY DISPUTE

 

8

 

RELATING TO THIS GUARANTY AND AGREES THAT ANY
SUCH DISPUTE SHALL BE TRIED BEFORE A JUDGE SITTING WITHOUT A JURY

 

IN WITNESS WHEREOF, the Guarantor has executed this Guaranty, or has
caused this Guaranty to be executed by its duly authorized officer or partner,
as of the 9th day of March, 2004.

 

	
   

  	
   

  	
   

  
	
  Address for
  Notices:

  	
   

  	
  BEST BUY
  STORES, L.P.

  
	
   

  	
   

  	
  By: BBC
  PROPERTY CO.

  
	
   

  	
   

  	
  Its General
  Partner

  
	
   

  	
   

  	
   

  
	
  7601 Penn
  Avenue South

  	
   

  	
  By:

  	
  /s/ Ryan D.
  Robinson

  	
   

  
	
  Richfield,
  Minnesota 55423

  	
   

  	
  Name: Ryan
  D. Robinson

  
	
  Attention:
  General Counsel

  	
   

  	
  Title: V.P.

  
	
  Telephone:612-291-7445

  	
   

  	
   

  
	
  Telefax:
  612-292-2323

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Bank’s
  Address for Notices:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Royal Bank
  of Canada

  Commercial Markets, Greater Vancouver

  36th Floor, 1055 West Georgia Street

  Vancouver, British Columbia, V6E 3S5

  Telephone: 604-665-8409

  Telefax: 604-665-6368

  	
   

  	
   

  

 

9Exhibit 10.4

 

Best Buy

Fourth Amended and
Restated

Deferred Compensation
Plan

Master
Plan Document

 

Effective April 1, 2004

 

 

BEST BUY

FOURTH AMENDED AND RESTATED

DEFERRED COMPENSATION PLAN

 

Effective April 1, 2004

 

Purpose

 

The purpose
of this Plan is to provide specified benefits to a select group of management
and highly compensated Employees and Directors who contribute materially to the
continued growth, development and future business success of Best Buy Co.,
Inc., a Minnesota corporation, and its subsidiaries.  This Plan shall be unfunded for tax purposes and for purposes of
Title I of ERISA.

 

The Plan was initially
adopted effective as of April 1, 1998. 
The Plan was amended and restated effective each of October 1,
1998, July 1, 1999 and January 1, 2001, and was amended effective
January 1, 2003.  The Plan is being
amended and restated effective April 1, 2004 (i) to change the name of the
Plan, (ii) to change the date for commencement of participation in the Plan for
new Participants, and (iii) to make certain other clarifying modifications.

 

ARTICLE 1

Definitions

 

For purposes of this
Plan, unless otherwise clearly apparent from the context, the following phrases
or terms shall have the following indicated meanings:

 

1.1                                 “Account
Balance” shall mean, with respect to a Participant, a credit on the records of
the Company equal to the sum of (i) the Deferral Account balance, (ii) the
vested Company Contribution Account balance and (iii) the vested Company
Matching Account balance.  The Account
Balance, and each other specified account balance, shall be a bookkeeping entry
only and shall be utilized solely as a device for the measurement and
determination of the amounts to be paid to a Participant, or his or her
designated Beneficiary, pursuant to this Plan.

 

1.2                                 “Accounting
Firm” shall have the meaning set forth in Section 3.8.

 

1.3                                 “Annual
Deferral Amount” shall mean that portion of a Participant’s Base Annual Salary,
Bonus and Directors Fees that a Participant elects to have, and is deferred, in
accordance with Article 3, for any one Plan Year.  In the event of a Participant’s Retirement,
Disability (if deferrals cease in accordance with Section 8.1), death or a
Termination of Employment prior to the end of a Plan Year, such year’s Annual
Deferral Amount shall be the actual amount withheld prior to such event.

 

1

 

1.4                                 “Base
Annual Salary” shall mean the annual cash compensation relating to services
performed during any calendar year, whether or not paid in such calendar year
or included on the Federal Income Tax Form W-2 for such calendar year,
excluding bonuses, commissions, overtime, fringe benefits, stock options,
relocation expenses, incentive payments, non-monetary awards, directors fees
and other fees, automobile and other allowances paid to a Participant for
employment services rendered (whether or not such allowances are included in
the Employee’s gross income).  Base
Annual Salary shall be calculated before reduction for compensation voluntarily
deferred or contributed by the Participant pursuant to all qualified or
non-qualified plans of any Employer and shall be calculated to include amounts
not otherwise included in the Participant’s gross income under Code Sections
125, 402(e)(3), 402(h), or 403(b) pursuant to plans established by any
Employer; provided, however, that all such amounts will be included in
compensation only to the extent that, had there been no such plan, the amount
would have been payable in cash to the Employee.

 

1.5                                 “Beneficiary”
shall mean one or more persons, trusts, estates or other entities, designated
in accordance with Article 9, that are entitled to receive benefits under
this Plan upon the death of a Participant.

 

1.6                                 “Beneficiary
Designation Form” shall mean the form established from time to time by the
Committee that a Participant completes, signs and returns to the Committee to
designate one or more Beneficiaries.

 

1.7                                 “Board”
shall mean the board of directors of the Company.

 

1.8                                 “Bonus”
shall mean any compensation, in addition to Base Annual Salary relating to
services performed during any calendar year, whether or not paid in such
calendar year or included on the Federal Income Tax Form W-2 for such calendar
year, payable to a Participant as an Employee under any Employer’s bonus and
cash incentive plans, excluding stock options.

 

1.9                                 “Business
Day” shall mean any day other than Saturday, Sunday or any legal holiday
observed by the New York Stock Exchange.

 

1.10                           “Change
in Control” shall mean the first to occur of any of the following events:

 

(a)                                  Any “person” (as that term is used in
Section 13 and 14(d)(2) of the Securities Exchange Act of 1934 (“Exchange
Act”)) becomes the beneficial owner (as that term is used in Section 13(d)
of the Exchange Act), directly or indirectly, of fifty percent (50%) or more of
the Company’s capital stock entitled to vote in the election of directors;

 

(b)                                 During any period of not more than two
consecutive years, not including any period prior to the adoption of this Plan,
individuals who at the beginning of such period constitute the board of
directors of the Company, and any new director (other than a

 

2

 

director
designated by a person who has entered into an agreement with the Company to effect
a transaction described in clause (a), (c), (d) or (e) of this Section) whose
election by the board of directors or nomination for election by the Company’s
stockholders was approved by a vote of at least three-fourths (3⁄4ths) of the
directors then still in office who either were directors at the beginning of
the period or whose election or nomination for election was previously so
approved, cease for any reason to constitute at least a majority thereof;

 

(c)                                  The shareholders of the Company approve
any consolidation or merger of the Company, other than a consolidation or
merger of the Company in which the holders of the common stock of the Company
immediately prior to the consolidation or merger hold more than fifty percent
(50%) of the common stock of the surviving corporation immediately after the
consolidation or merger;

 

(d)                                 The shareholders of the Company approve
any plan or proposal for the liquidation or dissolution of the Company; or

 

(e)                                  The shareholders of the Company approve
the sale or transfer of all or substantially all of the assets of the Company
to parties that are not within a “controlled group of corporations” (as defined
in Code Section 1563) in which the Company is a member.

 

1.11                           “Claimant”
shall have the meaning set forth in Section 14.1.

 

1.12                           “Code”
shall mean the Internal Revenue Code of 1986, as it may be amended from time to
time.

 

1.13                           “Committee”
shall mean the committee described in Article 12.

 

1.14                           “Company”
shall mean Best Buy Co., Inc., a Minnesota corporation, and any successor to
all or substantially all of the Company’s assets or business.

 

1.15                           “Company
Contribution Account” shall mean (i) the sum of the Participant’s Company
Contribution Amounts, plus or minus (ii) amounts credited or debited in
accordance with all the applicable crediting and debiting provisions of this
Plan that relate to the Participant’s Company Contribution Account, less (iii)
all distributions made to the Participant or his or her Beneficiary pursuant to
this Plan that relate to the Participant’s Company Contribution Account.

 

1.16                           “Company
Contribution Amount” shall mean, for any one Plan Year, the amount determined
in accordance with Section 3.5.

 

1.17                           “Company
Matching Account” shall mean (i) the sum of all of a Participant’s Company
Matching Amounts,  plus or minus (ii)
amounts credited or debited in accordance with all the

 

3

 

applicable
crediting and debiting provisions of this Plan that relate to the Participant’s
Company Matching Account, less (iii) all distributions made to the Participant
or his or her Beneficiary pursuant to this Plan that relate to the
Participant’s Company Matching Account.

 

1.18                           “Company
Matching Amount” for any one Plan Year shall be the amount determined in
accordance with Section 3.6.

 

1.19                           “Deduction
Limitation” shall mean the following described limitation on a benefit that may
otherwise be distributable pursuant to the provisions of this Plan.  Except as otherwise provided, this
limitation shall be applied to all distributions that are “subject to the
Deduction Limitation” under this Plan. 
If the Company determines in good faith prior to a Change in Control
that there is a reasonable likelihood that any compensation paid to a
Participant for a taxable year of the Employer would not be deductible by the
Employer solely by reason of the limitation under Code Section 162(m),
then to the extent deemed necessary by the Company to ensure that the entire
amount of any distribution to the Participant pursuant to this Plan prior to
the Change in Control is deductible, the Company may defer all or any portion
of a distribution under this Plan.  Any
amounts deferred pursuant to this limitation shall continue to be
credited/debited with additional amounts in accordance with Section 3.9
below, even if such amount is being paid out in installments.  The amounts so deferred and amounts credited
thereon shall be distributed to the Participant or his or her Beneficiary (in
the event of the Participant’s death) at the earliest possible date, as
determined by the Company in good faith, on which the deductibility of
compensation paid or payable to the Participant for the taxable year of the
Employer during which the distribution is made will not be limited by Code
Section 162(m), or if earlier, the effective date of a Change in
Control.  Notwithstanding anything to
the contrary in this Plan, the Deduction Limitation shall not apply to any
distributions made after a Change in Control.

 

1.20                           “Deferral
Account” shall mean (i) the sum of all of a Participant’s Annual Deferral
Amounts, plus or minus (ii) amounts credited or debited in accordance with all
the applicable crediting and debiting provisions of this Plan that relate to
the Participant’s Deferral Account, less (iii) all distributions made to the
Participant or his or her Beneficiary pursuant to this Plan that relate to his
or her Deferral Account.

 

1.21                           “Director”
shall mean any member of the board of directors of any Employer.

 

1.22                           “Directors
Fees” shall mean the annual fees paid by any Employer, including retainer fees
and meetings fees, as compensation for serving on the board of directors.

 

1.23                           “Disability”
shall mean a period of disability during which a Participant qualifies for
permanent disability benefits under the Participant’s Employer’s long-term
disability plan, or, if a Participant does not participate in such a plan, a
period of disability during which the Participant would have qualified for
permanent disability benefits under such a plan had the Participant been a participant
in a plan, as determined in the sole discretion of the

 

4

 

Committee.  If the Participant’s Employer does not
sponsor such a plan, or discontinues to sponsor such a plan, Disability shall
be determined by the Committee in its sole discretion.

 

1.24                           “Disability
Benefit” shall mean the benefit set forth in Article 8.

 

1.25                           “Election
Form and Plan Agreement” shall mean the form(s) established from time to time
by the Committee that a Participant completes, signs and returns (or completes
and submits online) to the Committee to indicate participation in the Plan
and/or to make an election under the Plan. The terms of any Election Form and
Plan Agreement may be different for any Participant, and any Election Form and
Plan Agreement may provide additional benefits not set forth in the Plan or
limit the benefits otherwise provided under the Plan; provided, however, that
any such additional benefits or benefit limitations must be agreed to by the
Company, the Employer and the Participant.

 

1.26                           “Employee”
shall mean a person who is an employee of any Employer.   The term “Employee” does not include any
person performing services purportedly as an independent contractor,
consultant, or “leased” worker, even if such person alleges or is found to be a
“common-law employee” of the Company and/or any of its subsidiaries, and such
persons are not eligible to participate in the Plan.

 

1.27                           “Employer(s)”
shall mean the Company and/or any of its subsidiaries (now in existence or
hereafter formed or acquired) whose Employees and/or Directors have been
selected by the Board to participate in the Plan.

 

1.28                           “ERISA”
shall mean the Employee Retirement Income Security Act of 1974, as it may be
amended from time to time.

 

1.29                           “401(k)
Plan” shall be that certain Best Buy Retirement Savings Plan dated
October 1, 1990 and adopted by the Company, as it may be amended from time
to time.

 

1.30                           “In-Service
Distribution” shall mean the payout set forth in Section 4.1.

 

1.31                           “Participant”
shall mean any Employee or Director (i) who is selected to participate in the
Plan, (ii) who elects to participate in the Plan, (iii) who properly completes
and submits an Election Form and Plan Agreement and a Beneficiary Designation
Form, (iv) whose Election Form and Plan Agreement and Beneficiary Designation
Form are accepted by the Committee, (v) who commences participation in the
Plan, and (vi) whose Election Form and Plan Agreement has not terminated.  A spouse or former spouse of a Participant
shall not be treated as a Participant in the Plan or have an Account Balance
under the Plan, even if he or she has an interest in the Participant’s benefits
under the Plan as a result of applicable law or property settlements resulting
from legal separation or divorce.

 

5

 

1.32                           “Plan”
shall mean the Company’s Deferred Compensation Plan, which shall be evidenced
by this instrument, as it may be amended from time to time.

 

1.33                           “Plan
Year” shall mean a period beginning on January 1 of each calendar year and
continuing through December 31 of such calendar year.

 

1.34                           “Pre-Retirement
Survivor Benefit” shall mean the benefit set forth in Article 6.

 

1.35                           “Quarterly
Installment Method” shall be a quarterly installment payment over the number of
quarters selected by the Participant in accordance with this Plan, calculated
as follows: The Account Balance of the Participant shall be calculated as of
the close of business on the last business day of the quarter.  The quarterly installment shall be
calculated by multiplying this balance by a fraction, the numerator of which is
one, and the denominator of which is the remaining number of quarterly payments
due the Participant.  By way of example,
if the Participant elects a forty (40) quarter Annual Installment Method, the
first payment shall be one-fortieth (1/40th) of the Account Balance, calculated
as described in this definition.  The
following quarter, the payment shall be one-thirty-ninth (1/39th) of the
Account Balance, calculated as described in this definition.  Each quarterly installment shall be paid on
or as soon as practicable after the last business day of the applicable
quarter.  Unless the Committee
determines otherwise, quarterly installment payments shall be drawn on a
pro-rata basis from each of the applicable Measurement Funds used to determine
amounts to be credited or debited to the Participant’s Account Balance pursuant
to Section 3.9 below.

 

1.36                           “Retirement”,
“Retire(s)” or “Retired” shall mean, with respect to an Employee, severance
from employment from all Employers for any reason other than a leave of
absence, death or Disability on or after the attainment of age sixty (60); and
shall mean with respect to a Director who is not an Employee, severance of his
or her directorships with all Employers on or after the attainment of age
seventy (70).  If a Participant is both
an Employee and a Director, Retirement shall not occur until he or she Retires
as both an Employee and a Director, which Retirement shall be deemed to be a
Retirement as a Director; provided, however, that such a Participant may elect,
at least five years prior to Retirement and in accordance with the policies and
procedures established by the Committee, to Retire for purposes of this Plan at
the time he or she Retires as an Employee, which Retirement shall be deemed to
be a Retirement as an Employee.

 

1.37                           “Retirement
Benefit” shall mean the benefit set forth in Article 5.

 

1.38                           “Termination
Benefit” shall mean the benefit set forth in Article 7.

 

1.39                           “Termination
of Employment” shall mean the severing of employment with all Employers, or
service as a Director of all Employers, voluntarily or involuntarily, for any
reason other than Retirement, Disability, death or an authorized leave of absence.  If a Participant is both an Employee and a
Director, a Termination of Employment shall occur only upon the

 

6

 

termination
of the last position held; provided, however, that such a Participant may elect,
at least five years before cessation of employment with all Employers and in
accordance with the policies and procedures established by the Committee, to be
treated for purposes of this Plan as having experienced a Termination of
Employment at the time he or she ceases employment with all Employers as an
Employee.

 

1.40                           “Trust”
shall mean one or more trusts established pursuant to that certain Master Trust
Agreement, dated as of April 1, 1998 between the Company and the trustee
named therein, as amended from time to time.

 

1.41                           “Unforeseeable
Financial Emergency” shall mean an unanticipated emergency that is caused by an
event beyond the control of the Participant that would result in severe
financial hardship to the Participant resulting from (i) a sudden and
unexpected illness or accident of the Participant or a dependent of the
Participant, (ii) a loss of the Participant’s property due to casualty, or
(iii) such other extraordinary and unforeseeable circumstances arising as a
result of events beyond the control of the Participant, all as determined in
the sole discretion of the Committee.

 

1.42                           “Withdrawal
Amount” shall mean the payout set forth in Section 4.4.

 

1.43                           “Years
of Service” shall mean the total number of years in which a Participant has
been employed by one or more Employers, as defined in Article IV of the
401(k) Plan.

 

ARTICLE 2

Selection, Enrollment, Commencement
of Participation

 

2.1                                 Selection by Committee.  Participation in the Plan shall be limited
to a select group of management and highly compensated Employees and Directors
of the Employers, as determined by the Committee in its sole discretion.  From that group, the Committee shall select,
in its sole discretion, Employees and Directors to participate in the Plan.

 

2.2                                 Enrollment Requirements.  As a condition to participation, each
selected Employee or Director shall complete, sign and return (or complete and
submit online, to the extent available) to the Committee an Election Form and
Plan Agreement and a Beneficiary Designation Form, all within thirty (30) days
after he or she is selected to participate in the Plan.  In addition, the Committee shall establish
from time to time such other enrollment requirements as it determines in its
sole discretion are necessary.

 

2.3                                 Commencement of Participation.  Provided an Employee or Director selected to
participate in the Plan has met all enrollment requirements set forth in this
Plan and required by the Committee, including returning all required documents
to the Committee within the specified time period, such Employee or Director
shall commence participation in the Plan as soon as

 

7

 

administratively
practicable after the date on which such Employee or Director completes all
enrollment requirements; provided, that no Employee may commence participation
in the Plan prior to the first day of the calendar month coincident with or
immediately following sixty (60) days of continuous employment with any
Employer.  If an Employee or a Director
fails to meet all such requirements within the period required, in accordance
with Section 2.2, that Employee or Director shall not be eligible to
participate in the Plan until the first day of the pay period commencing in the
Plan Year following the delivery to and acceptance by the Committee of the
required documents.

 

2.4                                 Termination of Participation and/or Deferrals.  If the Committee determines in good faith
that a Participant no longer qualifies as a member of a select group of
management or highly compensated employees, as membership in such group is
determined in accordance with Sections 201(2), 301(a)(3) and 401(a)(1) of
ERISA, the Committee shall have the right, in its sole discretion, to (i)
terminate any deferral election the Participant has made for the remainder of
the Plan Year in which the Participant’s membership status changes, (ii)
prevent the Participant from making future deferral elections and/or (iii)
immediately distribute the Participant’s then Account Balance as a Termination
Benefit subject to Article 7 and terminate the Participant’s participation
in the Plan.

 

ARTICLE 3

Deferral Commitments/Company
Matching/Crediting/Taxes

 

3.1                                 Minimum Deferral.  There is no minimum amount for deferral of
Base Annual Salary, Bonus or Director’s Fees under the Plan. If no election is
made, the amount deferred shall be zero.

 

3.2                                 Maximum Deferral.

 

(a)                                  Base Annual Salary, Bonus and Directors Fees.
For each Plan Year, a Participant may elect to defer, as his or her Annual
Deferral Amount, Base Annual Salary, Bonus and/or Directors Fees up to the
following maximum percentages for each deferral elected:

 

	
  Deferral

  	
   

  	
  Maximum
  Amount

  
	
  Base Annual Salary

  	
   

  	
  75%

  
	
  Bonus

  	
   

  	
  100%

  
	
  Directors Fees

  	
   

  	
  100%

  

 

(b)                                 Notwithstanding the foregoing, if a
Participant first becomes a Participant after the first day of a Plan Year, the
maximum Annual Deferral Amount, with respect to Base Annual Salary, Bonus and
Directors Fees shall be limited to the amount of

 

8

 

compensation
not yet earned by the Participant as of the date the Participant submits an
Election Form and Plan Agreement to the Committee for acceptance.

 

3.3                                 Election to Defer; Effect of Election Form and Plan
Agreement.

 

(a)                                  First Plan Year.  In connection with a Participant’s commencement
of participation in the Plan, the Participant shall make an irrevocable
deferral election for the Plan Year in which the Participant commences
participation in the Plan, along with such other elections as the Committee
deems necessary or desirable under the Plan. For these elections to be valid,
the Election Form and Plan Agreement must be completed by the Participant and
timely delivered to the Committee (in accordance with Section 2.2 above)
and accepted by the Committee.

 

(b)                                 Subsequent Plan Years.  For each succeeding Plan Year, the
Participant shall make an irrevocable deferral election for that Plan Year, and
such other elections as the Committee deems necessary or desirable under the
Plan.  For these elections to be valid,
the Election Form and Plan Agreement must be completed by the Participant and
timely delivered to the Committee, in accordance with its rules and procedures,
before the end of the Plan Year preceding the Plan Year for which the election
is made.  If no such Election Form and Plan
Agreement is timely delivered for a Plan Year, the Annual Deferral Amount shall
be zero for that Plan Year.

 

(c)                                  Effect of Termination on Pending Election.  Upon the occurrence of a Termination of
Employment, any pending election shall be automatically terminated.

 

3.4                                 Withholding of Annual Deferral Amounts.  For each Plan Year, the Base Annual Salary
portion of the Annual Deferral Amount shall be withheld from each regularly
scheduled Base Annual Salary payroll in equal amounts, as may be adjusted from
time to time for increases and decreases in Base Annual Salary.  The Bonus and/or Directors Fees portion of
the Annual Deferral Amount shall be withheld at the time the Bonus or Directors
Fees are or otherwise would be paid to the Participant, whether or not this
occurs during the Plan Year itself.

 

3.5                                 Company Contribution Amount.  For each Plan Year, the Company, in its sole
discretion, may, but is not required to, credit any amount it desires to any
Participant’s Company Contribution Account under this Plan, which amount shall
be for that Participant the Company Contribution Amount for that Plan
Year.  The amount so credited to a
Participant may be smaller or larger than the amount credited to any other
Participant, and the amount credited to any Participant for a Plan Year may be
zero, even though one or more other Participants receive a Company Contribution
Amount for that Plan Year.  The Company
Contribution Amount, if any, shall be credited as of the date(s) selected by
the Company.

 

9

 

3.6                                 Company Matching Amount.  For each Plan Year, the Company, in its sole
discretion, may, but is not required to, credit to any Participant’s Company
Matching Account a Company Matching Amount for any Plan Year equal to a
percentage of all or a portion of the Participant’s Annual Deferral Amount for
such Plan Year.  Such Company Matching
Amount may, but need not be, coordinated with any matching contribution made to
the 401(k) Plan on the Participant’s behalf for the plan year of the 401(k)
Plan that corresponds to the Plan Year. The Company Matching Amount, if any,
shall be credited as of the date(s) selected by the Company, which may, but
need not be, the same date(s) that matching contributions are credited under the
401(k) Plan.

 

3.7                                 Investment of Trust Assets.  The trustees of the Trust shall be
authorized, upon written instructions received from the Committee or investment
manager appointed by the Committee, to invest and reinvest the assets of the
Trust in accordance with the applicable trust agreements, including the
disposition of Company stock and reinvestment of the proceeds in one or more
investment vehicles designated by the Committee.

 

3.8                                 Vesting.

 

(a)                                  A Participant shall at all times be one
hundred percent (100%) vested in his or her Deferral Account.

 

(b)                                 A Participant shall be vested in his or
her Company Contribution Account, if any, and any earnings credited thereon
pursuant to Section 3.9 below, in accordance with the vesting
schedule established by the Company in its sole discretion.

 

(c)                                  A Participant shall be vested in his or
her Company Matching Account, and any earnings credited thereon pursuant to
Section 3.9 below, as follows: (i) with respect to all benefits under this
Plan other than the Termination Benefit, a Participant’s vested Company
Matching Account shall equal one hundred percent (100%) of such Participant’s
Company Matching Account; and (ii) with respect to the Termination Benefit, a
Participant’s Company Matching Account shall vest on the basis of the
Participant’s Years of Service at the time the Participant experiences a
Termination of Employment, in accordance with the following schedule:

 

	
  Years of Service at Date of

  Termination of Employment

  	
   

  	
  Vested
  Percentage of

  Company Matching Account

  
	
  Less than 2 years

  	
   

  	
  0%

  
	
  2 years or more, but
  less than 3

  	
   

  	
  20%

  
	
  3 years or more, but
  less than 4

  	
   

  	
  40%

  
	
  4 years or more, but
  less than 5

  	
   

  	
  60%

  
	
  5 years or more

  	
   

  	
  100%

  

 

10

 

(d)                                 Notwithstanding anything to the contrary
contained in this Section 3.8 except subsection (e), in the event of
either (i) a Change in Control, or (ii) a termination of the Plan as described
in Section 11.1 below, a Participant’s Company Contribution Account and
Company Matching Account shall immediately become one hundred percent (100%)
vested (if it is not already vested in accordance with the above vesting
schedules).

 

(e)                                  Notwithstanding subsection (d), the
vesting schedule for a Participant’s Company Contribution Account and
Company Matching Account shall not be accelerated upon a Change in Control to
the extent that the Committee determines that such acceleration would cause the
deduction limitations of Section 280G of the Code to become effective.  In the event that all of a Participant’s
Company Contribution Account and/or Company Matching Account is not vested
pursuant to such a determination, the Participant may request independent
verification of the Committee’s calculations with respect to the application of
Section 280G.  In such case, the
Committee must provide to the Participant within fifteen (15) business days of
such a request an opinion from a nationally recognized accounting firm selected
by the Participant (the “Accounting Firm”). 
The opinion shall state the Accounting Firm’s opinion that any
limitation in the vested percentage hereunder is necessary to avoid the limits
of Code Section 280G and contain supporting calculations.  The cost of such opinion shall be paid for
by the Company.

 

3.9                                 Crediting/Debiting of Account Balances.  In accordance with, and subject to, the
rules and procedures that are established from time to time by the Committee,
in its sole discretion, amounts shall be credited or debited to a Participant’s
Account Balance, which solely for purposes of this Section 3.9 shall
include the Participant’s Company Contribution Account and Company Matching
Account regardless of vesting status, 
in accordance with the following rules:

 

(a)                                  Election of Measurement Funds.  A Participant, in connection with his or her
initial deferral election in accordance with Section 3.3(a) above, shall
elect, on the Election Form and Plan Agreement, one or more Measurement Fund(s)
(as described in Section 3.9(c) below) to be used to determine the
additional amounts to be credited or debited to his or her Account Balance for
the first day in which the Participant commences participation in the Plan and
continuing thereafter for each subsequent day in which the Participant
participates in the Plan, unless changed in accordance with the next sentence.
Commencing with the first day that follows the Participant’s commencement of
participation in the Plan and continuing thereafter for each subsequent day in
which the Participant participates in the Plan, the Participant may (but is not
required to) elect, by submitting an Election Form and Plan Agreement to the
Committee that is accepted by the Committee, to add or delete one or more
Measurement Fund(s) to be used to determine the additional amounts to be
credited or debited to his or her Account Balance, or to change the portion of
his or her

 

11

 

Account
Balance allocated to each previously or newly elected Measurement Fund. The
Participant may change the percentage of future contributions to be invested in
each Measurement Fund and/or elect to have all or part the Participant’s
previously invested Account Balance transferred among the Measurement Funds at
any time. If an election is made in accordance with this Subsection (a),
it shall be effective as soon as administratively practicable after the
election is made.  Generally, an
election shall become effective on the day such election is made if such
election is received before 3:00 PM CT on any Business Day, and any election
received after 3:00 PM CT on a Business Day, or any election received on a day
other than a Business Day, shall be effective as of the next Business Day.  Any election shall continue thereafter for
each subsequent day in which the Participant participates in the Plan, unless
changed in accordance with this Subsection (a).

 

(b)                                 Proportionate Allocation.  In making any election described in
Section 3.9(a) above, the Participant shall specify on the Election Form
and Plan Agreement, in increments of one percentage point (1%), the percentage
of his or her Account Balance to be allocated to a Measurement Fund (as if the
Participant was making an investment in that Measurement Fund with that portion
of his or her Account Balance).

 

(c)                                  Measurement Funds.
The Participant may elect one or more measurement funds described in the
Election Form and Plan Agreement and/or accompanying Plan enrollment materials,
based on certain mutual funds (the “Measurement Funds”), for the purpose of
crediting or debiting additional amounts to his or her Account Balance. As
necessary, the Committee may, in its sole discretion, discontinue, substitute
or add a Measurement Fund.  Each such
action will take effect as of the first day of the calendar month that follows
by thirty (30) days the day on which the Committee gives Participants advance
written notice of such change.

 

(d)                                 Crediting or Debiting Method.  The performance of each elected Measurement
Fund (either positive or negative) will be determined by the Committee, in its
reasonable discretion, based on the performance of the Measurement Funds
themselves.  A Participant’s Account
Balance shall be credited or debited on a daily basis based on the performance
of each Measurement Fund selected by the Participant, as determined by the
Committee in its sole discretion, as though (i) a Participant’s Account Balance
were invested in the Measurement Fund(s) selected by the Participant, in the
percentages applicable to such day, at the closing price on such date; (ii) the
portion of the Annual Deferral Amount that was actually deferred during any day
were invested in the Measurement Fund(s) selected by the Participant, in the
percentages applicable to such day, on the day on which such amounts are
actually deferred from the Participant’s Base Annual Salary through reductions
in his or her payroll, at the closing price on such date; and (iii) any
distribution made to a Participant that decreases such Participant’s Account
Balance

 

12

 

ceased
being invested in the Measurement Fund(s), in the percentages applicable to
such day, on the Business Day prior to the distribution, at the closing price
on such prior Business Day. The Participant’s Company Matching Amount shall be
credited to his or her Company Matching Account for purposes of this
Section 3.9(d) as of the close of business on the date(s) that matching
contributions are credited under the 401(k) Plan.  The Participant’s Company Contribution Amount shall be credited
to his or her Company Contribution Account on any date(s) selected by the
Company.

 

(e)                                  No Actual Investment.  Notwithstanding any other provision of this
Plan that may be interpreted to the contrary, the Measurement Funds are to be
used for measurement purposes only, and a Participant’s election of any such
Measurement Fund, the allocation to his or her Account Balance thereto, the
calculation of additional amounts and the crediting or debiting of such amounts
to a Participant’s Account Balance shall not be considered or construed in any
manner as an actual investment of his or her Account Balance in any such
Measurement Fund.  In the event that the
Company or the trustees of the Trust, in their own discretion, decide to invest
funds in any or all of the Measurement Funds, no Participant shall have any
rights in or to such investments themselves. 
Without limiting the foregoing, a Participant’s Account Balance shall at
all times be a bookkeeping entry only and shall not represent any investment
made on his or her behalf by the Company or the Trust; the Participant shall at
all times remain an unsecured creditor of the Company, and where applicable,
the Participant’s Employer.

 

3.10                           FICA and Other Taxes.

 

(a)                                  Annual Deferral Amounts.  For each Plan Year in which an Annual
Deferral Amount is being withheld from a Participant, the Participant’s
Employer(s) shall withhold from that portion of the Participant’s Base Annual
Salary and Bonus that is not being deferred, in a manner determined by the
Employer(s), the Participant’s share of FICA and other employment taxes on such
Annual Deferral Amount.  If necessary,
the Committee may reduce the Annual Deferral Amount in order to comply with
this Section 3.10.

 

(b)                                 Company Matching and Contribution Amounts.  When a Participant becomes vested in a
portion of his or her Company Matching Account or Company Contribution Account,
the Participant’s Employer(s) shall withhold from the Participant’s Base Annual
Salary and/or Bonus that is not deferred, in a manner determined by the
Employer(s), the Participant’s share of FICA and other employment taxes.  If necessary, the Committee may reduce the
vested portion of the Participant’s Company Matching Account in order to comply
with this Section 3.10.

 

3.11                           Distributions.  The Company, or the trustees of the Trust, shall withhold from
any payments made to a Participant under this Plan all federal, state and local
income, employment and

 

13

 

other
taxes required to be withheld in connection with such payments, in amounts and
in a manner to be determined in the sole discretion of the Company and the
trustees of the Trust.

 

ARTICLE 4

In-Service Distribution;
Unforeseeable Financial Emergencies; Withdrawal

 

4.1                                 In-Service Distribution.  In connection with each election to defer an
Annual Deferral Amount, a Participant may irrevocably elect to receive a future
“In-Service Distribution” from the Plan with respect to all or a portion of
such Annual Deferral Amount.  Subject to
the Deduction Limitation, the In-Service Distribution shall be a lump sum
payment in an amount that is equal to the portion of the Annual Deferral Amount
for which the Participant has elected to receive an In-Service Distribution
plus or minus amounts credited or debited in the manner provided in
Section 3.9 above on that amount, determined at the time that the
In-Service Distribution  becomes payable
(rather than the date of a Termination of Employment).  Subject to the Deduction Limitation and the
other terms and conditions of this Plan, each In-Service Distribution elected
shall be paid out during a sixty (60) day period commencing immediately after
the last day of any Plan Year designated by the Participant that is at least
five Plan Years after the Plan Year in which the Annual Deferral Amount is
actually deferred.  By way of example,
if a five year In-Service Distribution is elected for Annual Deferral Amounts
that are deferred in the Plan Year commencing January 1, 2004, the five
year In-Service Distribution would become payable during a sixty (60) day
period commencing no earlier than January 1, 2010.

 

4.2                                 Other Benefits Take Precedence Over In-Service
Distribution.   Should
an event occur that triggers a benefit under Article 5, 6, 7 or 8, any
Annual Deferral Amount, plus amounts credited or debited thereon, that is
subject to an In-Service Distribution election under Section 4.1 shall not
be paid in accordance with Section 4.1 but shall be paid in accordance
with the other applicable Article.

 

4.3                                 Withdrawal Payout/Suspensions for Unforeseeable
Financial Emergencies. 
If the Participant experiences an Unforeseeable Financial Emergency, the
Participant may petition the Committee to (i) suspend any deferrals required to
be made by a Participant and/or (ii) receive a partial or full payout from the
Plan.  The payout shall not exceed the
lesser of the Participant’s Account Balance, calculated as if such Participant
were receiving a Termination Benefit, or the amount reasonably needed to
satisfy the Unforeseeable Financial Emergency. 
If, subject to the sole discretion of the Committee, the petition for a
suspension and/or payout is approved, suspension shall take effect upon the
date of approval and any payout shall be made within sixty (60) days of the
date of approval.  The payment of any
amount under this Section 4.3 shall not be subject to the Deduction
Limitation.

 

4.4                                 Withdrawal Election.  A Participant (or, after a Participant’s
death, his or her Beneficiary) may elect, at any time, to withdraw all of his
or her Account Balance, calculated as if there

 

14

 

had
occurred a Termination of Employment as of the day of the election, less a
withdrawal penalty equal to ten percent (10%) of such amount (the net amount
shall be referred to as the “Withdrawal Amount”). This election can be made at
any time, before or after Retirement, Disability, death or Termination of
Employment, and whether or not the Participant (or Beneficiary) is in the
process of being paid pursuant to an installment payment schedule. If made
before Retirement, Disability or death, a Participant’s Withdrawal Amount shall
be calculated as if there had occurred a Termination of Employment as of the
day of the election. No partial withdrawals of the Withdrawal Amount shall be
allowed. The Participant (or his or her Beneficiary) shall make this election
by giving the Committee advance written notice of the election in a form
determined from time to time by the Committee. The Participant (or his or her
Beneficiary) shall be paid the Withdrawal Amount within sixty (60) days of his
or her election. Once the Withdrawal Amount is paid, the Participant’s
participation in the Plan shall terminate and the Participant shall not be
eligible to participate in the Plan until the first Plan Year following the one
(1) year anniversary of the payment of the Withdrawal Amount. The payment of
any such Withdrawal Amount shall not be subject to the Deduction Limitation.

 

ARTICLE 5

Retirement Benefit

 

5.1                                 Retirement Benefit.  Subject to the Deduction Limitation, a
Participant who Retires shall receive, as a Retirement Benefit, his or her
Account Balance.

 

5.2                                 Payment of Retirement Benefit.  A Participant, in connection with his or her
commencement of participation in the Plan, shall elect on an Election Form and
Plan Agreement to receive the Retirement Benefit in a lump sum or pursuant to a
Quarterly Installment Method of twenty (20), forty (40) or sixty (60)
quarters.  If the Participant’s Account
Balance at the time of Retirement is less than $10,000, the Committee, at its
discretion, may allow the Retirement Benefit to be paid in a lump sum.  The Participant may annually change his or
her election to an allowable alternative payout period by submitting a new
Election Form and Plan Agreement to the Committee, provided that any such
Election Form and Plan Agreement is submitted at least 3 years prior to the
Participant’s Retirement and is accepted by the Committee in its sole
discretion. The Election Form and Plan Agreement most recently accepted by the
Committee shall govern the payout of the Retirement Benefit.  If a Participant does not make any election
with respect to the payment of the Retirement Benefit, then such benefit shall
be payable in a lump sum.  The lump sum
payment shall be made, or installment payments shall commence, no later than
sixty (60) days after the last day of the Plan Year in which the Participant
Retires.  Any payment made shall be
subject to the Deduction Limitation.

 

5.3                                 Death Prior to Completion of Retirement Benefit.  If a Participant dies after Retirement but
before the Retirement Benefit is paid in full, the Participant’s unpaid
Retirement Benefit

 

15

 

payments
shall continue and shall be paid to the Participant’s Beneficiary (i) over the
remaining number of quarters and in the same amounts as that benefit would have
been paid to the Participant had the Participant survived, or (ii) in a lump
sum, if requested by the Beneficiary and allowed in the sole discretion of the
Committee, that is equal to the Participant’s unpaid remaining Account Balance.

 

ARTICLE 6

Pre-Retirement Survivor Benefit

 

6.1                                 Pre-Retirement Survivor Benefit.  Subject to the Deduction Limitation, the
Participant’s Beneficiary shall receive a Pre-Retirement Survivor Benefit equal
to the Participant’s Account Balance if the Participant dies before he or she
Retires, experiences a Termination of Employment or suffers a Disability.

 

6.2                                 Payment of Pre-Retirement Survivor Benefit.  A Participant, in connection with his or her
commencement of participation in the Plan, shall elect on an Election Form and
Plan Agreement whether the Pre-Retirement Survivor Benefit shall be received by
his or her Beneficiary in a lump sum or pursuant to a Quarterly Installment
Method of twenty (20) or forty (40) quarters. 
The Participant may annually change this election to an allowable
alternative payout period by submitting a new Election Form and Plan Agreement
to the Committee, which form must be accepted by the Committee in its sole
discretion.  The Election Form and Plan
Agreement most recently accepted by the Committee prior to the Participant’s
death shall govern the payout of the Participant’s Pre-Retirement Survivor
Benefit.  If a Participant does not make
any election with respect to the payment of the Pre-Retirement Survivor
Benefit, then such benefit shall be paid in a lump sum.  Despite the foregoing, if the Participant’s
Account Balance at the time of his or her death is less than $25,000, payment
of the Pre-Retirement Survivor Benefit may be made, in the sole discretion of
the Committee, in a lump sum or pursuant to a Quarterly Installment Method of
not more than twenty (20) quarters.  The
lump sum payment shall be made, or installment payments shall commence, no
later than sixty (60) days after the last day of the Plan Year in which the
Committee is provided with proof that is satisfactory to the Committee of the
Participant’s death.  Any payment made
shall be subject to the Deduction Limitation.

 

ARTICLE 7

Termination Benefit

 

7.1                                 Termination Benefit.  Subject to the Deduction Limitation, the
Participant shall receive a Termination Benefit, which shall be equal to the
Participant’s vested Account Balance (with vesting determined as of the date of
the Participant’s Termination of Employment), if a Participant experiences a
Termination of Employment prior to his or her Retirement, death or Disability.

 

16

 

7.2                                 Payment of Termination Benefit.  If the Participant’s Account Balance at the
time of his or her Termination of Employment is less than $25,000, payment of
his or her Termination Benefit shall be paid in a lump sum.  If his or her Account Balance at such time
is equal to or greater than that amount, the Participant may request and the
Committee, in its sole discretion, may allow the Termination Benefit to be paid
in a lump sum or pursuant to a Quarterly Installment Method of twenty (20)
quarters.  The lump sum payment shall be
made, or installment payments shall commence, no later than sixty (60) days after
the last day of the Plan Year in which the Participant experiences the
Termination of Employment.  Any payment
made shall be subject to the Deduction Limitation.

 

ARTICLE 8

Disability Waiver and Benefit

 

8.1                                 Disability Waiver.

 

(a)                                  Waiver of Deferral.  A Participant who is determined by the
Committee to be suffering from a Disability shall be excused from fulfilling
that portion of the Annual Deferral Amount commitment that would otherwise have
been withheld from a Participant’s Base Annual Salary, Bonus and/or Directors
Fees for the Plan Year during which the Participant first suffers a
Disability.  During the period of
Disability, the Participant shall not be allowed to make any additional
deferral elections, but will continue to be considered a Participant for all
other purposes of this Plan.

 

(b)                                 Return to Work.  If a Participant returns to employment, or
service as a Director, with an Employer, after a Disability ceases, the
Participant may elect to defer an Annual Deferral Amount for the Plan Year following
his or her return to employment or service and for every Plan Year thereafter
while a Participant in the Plan; provided such deferral elections are otherwise
allowed and an Election Form and Plan Agreement is delivered to and accepted by
the Committee for each such election in accordance with Section 3.3 above.

 

8.2                                 Continued Eligibility; Disability Benefit.  A Participant suffering a Disability shall,
for benefit purposes under this Plan, continue to be considered to be employed,
or in the service of an Employer as a Director, and shall be eligible for the
benefits provided for in Articles 4, 5, 6 or 7 in accordance with the
provisions of those Articles. 
Notwithstanding the above, the Committee shall have the right to, in its
sole and absolute discretion and for purposes of this Plan only, and must in
the case of a Participant who is otherwise eligible to Retire, deem the
Participant to have experienced a Termination of Employment, or in the case of
a Participant who is eligible to Retire, to have Retired, at any time (or in
the case of a Participant who is eligible to Retire, as soon as practicable)
after such Participant is determined to be suffering

 

17

 

a
Disability, in which case the Participant shall receive a Disability Benefit
equal to his or her Account Balance at the time of the Committee’s
determination; provided, however, that should the Participant otherwise have
been eligible to Retire, he or she shall be paid in accordance with Article 5.  The Disability Benefit shall be paid in a
lump sum within sixty (60) days of the Committee’s exercise of such right.  Any payment made shall be subject to the
Deduction Limitation.

 

8.3                                 Short-Term Disability Waiver.  If a Participant qualifies for and receives
short-term disability benefits under any short-term disability plan maintained
by Participant’s Employer, the Participant shall continue to be considered
employed by the Employer for purposes of this Plan and the Participant shall be
excused from making deferrals under the Plan until the earlier of the date the
short-term disability benefits expire or the Participant returns to a paid
employment status.  Upon such expiration
or return, deferrals shall resume for the remaining portion of the Plan Year in
which the expiration or return occurs, based on the deferral election, if any,
made for that Plan Year.  If no election
was made for that Plan Year, no deferral shall be withheld.

ARTICLE 9

Beneficiary Designation

 

9.1                                 Beneficiary.  Each Participant shall have the right, at any time, to designate
his or her Beneficiary(ies) (both primary as well as contingent) to receive any
benefits payable under the Plan to a beneficiary upon the death of a
Participant.  The Beneficiary designated
under this Plan may be the same as or different from the Beneficiary
designation under any other plan of an Employer in which the Participant
participates.

 

9.2                                 Beneficiary Designation; Change; Spousal Consent.  A Participant shall designate his or her
Beneficiary by completing and signing the Beneficiary Designation Form, and
returning it to the Committee or its designated agent.  A Participant shall have the right to change
a Beneficiary by completing, signing and otherwise complying with the terms of
the Beneficiary Designation Form and the Committee’s rules and procedures, as
in effect from time to time.  If the
Participant names someone other than his or her spouse as a Beneficiary of at
least fifty percent (50%) of the Participant’s benefits,  a spousal consent, in the form designated by
the Committee, must be signed by that Participant’s spouse and returned to the
Committee.  Upon the acceptance by the
Committee of a new Beneficiary Designation Form, all Beneficiary designations
previously filed shall be canceled.  The
Committee shall be entitled to rely on the last Beneficiary Designation Form
filed by the Participant and accepted by the Committee prior to his or her
death.

 

9.3                                 Acknowledgment.  No designation or change in designation of a Beneficiary shall be
effective until received and acknowledged in writing by the Committee or its
designated agent.

 

18

 

9.4                                 No Beneficiary Designation.  If a Participant fails to designate a
Beneficiary as provided in Sections 9.1, 9.2 and 9.3 above or, if all
designated Beneficiaries predecease the Participant or die prior to complete
distribution of the Participant’s benefits, then the Participant’s designated
Beneficiary shall be deemed to be his or her surviving spouse.  If the Participant has no surviving spouse,
the benefits remaining under the Plan to be paid to a Beneficiary shall be
payable to the executor or personal representative of the Participant’s estate.

 

9.5                                 Doubt as to Beneficiary.  If the Committee has any doubt as to the
proper Beneficiary to receive payments pursuant to this Plan, the Committee
shall have the right, exercisable in its discretion, to cause the Company to
withhold such payments until this matter is resolved to the Committee’s
satisfaction.

 

9.6                                 Discharge of Obligations.  The payment of benefits under the Plan to a
Beneficiary shall fully and completely discharge all Employers and the
Committee from all further obligations under this Plan with respect to the
Participant.

 

ARTICLE 10

Leave of Absence

 

10.1                           Paid Leave of Absence.   If a Participant is authorized by the
Participant’s Employer for any reason to take a paid leave of absence from the
employment of the Employer, the Participant shall continue to be considered
employed by the Employer and the Annual Deferral Amount shall continue to be
withheld during such paid leave of absence in accordance with Section 3.4.

 

10.2                           Unpaid Leave of Absence.  If a Participant is authorized by the
Participant’s Employer for any reason to take an unpaid leave of absence from
the employment of the Employer, the Participant shall continue to be considered
employed by the Employer and the Participant shall be excused from making
deferrals until the earlier of the date the leave of absence expires or the
Participant returns to a paid employment status.  Upon such expiration or return, deferrals shall resume for the
remaining portion of the Plan Year in which the expiration or return occurs,
based on the deferral election, if any, made for that Plan Year.  If no election was made for that Plan Year,
no deferral shall be withheld.

 

ARTICLE 11

Termination, Amendment or
Modification

 

11.1                           Termination.  Although the Company anticipates that it will continue the Plan
for an indefinite period of time, there is no guarantee that the Company will
continue the Plan or will not terminate the Plan at any time in the
future.  Accordingly, the Company
reserves the

 

19

 

right
to discontinue its sponsorship of the Plan and/or to terminate the Plan at any
time with respect to any or all of the participating Employees and Directors,
by action of its Board.  Upon the
termination of the Plan with respect to the Employees and/or Directors of any
Employer, the Election Form and Plan Agreements of the affected Participants
who are employed by that Employer, or in the service of that Employer as
Directors, shall terminate, and such affected Participants (i) shall
immediately become one hundred percent (100%) vested in their Company
Contribution Accounts and Company Matching Accounts as provided in
Section 3.8(d) above (subject to Section 3.8(e)), and (ii) shall have
their Account Balances (determined as if they had experienced a Termination of
Employment on the date of Plan termination or, if Plan termination occurs after
the date upon which a Participant was eligible to Retire, then with respect to
that Participant as if he or she had Retired on the date of Plan termination)
paid to them as follows:  Prior to a
Change in Control, if the Plan is terminated with respect to all of the
Employees and/or Directors of an Employer, the Company shall have the right, in
its sole discretion, and notwithstanding any elections made by the Participant,
to pay such benefits in a lump sum or pursuant to a Quarterly Installment
Method of up to sixty (60) quarters, with amounts credited and debited during
the installment period as provided herein. 
If the Plan is terminated with respect to less than all of the Employees
and/or Directors of an Employer, the Company shall be required to pay such
benefits in a lump sum.  After a Change
in Control, the Company shall be required to pay such benefits in a lump
sum.  The termination of the Plan shall
not adversely affect any benefits to which a Participant or Beneficiary has
become entitled under the Plan as of the date of termination; provided however,
that the Company shall have the right to accelerate installment payments
without a premium or prepayment penalty by paying the Account Balance in a lump
sum or pursuant to a Quarterly Installment Method using fewer quarters
(provided that the present value of all payments that will have been received
by a Participant at any given point of time under the different payment
schedule shall equal or exceed the present value of all payments that
would have been received at that point in time under the original payment
schedule).

 

11.2                           Amendment.  The Company may, at any time, amend or modify the Plan in whole
or in part by the action of its Board; provided, however, that: (i) no
amendment or modification shall be effective to decrease or restrict the value
of a Participant’s Account Balance in existence at the time the amendment or
modification is made, calculated as if the Participant had experienced a
Termination of Employment as of the effective date of the amendment or
modification or, if the amendment or modification occurs after the date upon
which the Participant was eligible to Retire, the Participant had Retired as of
the effective date of the amendment or modification, and (ii) no amendment or
modification of this Section 11.2 or Section 12.2 of the Plan shall
be effective.  The amendment or
modification of the Plan shall not adversely affect any benefits to which a
Participant or Beneficiary has become entitled under the Plan as of the date of
the amendment or modification; provided, however, that the Company shall have
the right to accelerate installment payments by paying the Account Balance in a
lump sum or pursuant to a Quarterly Installment Method using fewer quarters
(provided that the present value of all payments that will have been received
by a Participant

 

20

 

at any
given point of time under the different payment schedule shall equal or
exceed the present value of all payments that would have been received at that
point in time under the original payment schedule).

 

11.3                           Election Form and Plan Agreement.  Despite the provisions of Sections 11.1 and
11.2 above, if a Participant’s Election Form and Plan Agreement contains
benefits or limitations that are not in this Plan document, the Company may
only amend or terminate such provisions with the consent of the Participant.

 

11.4                           Effect of Payment.  The full payment of the applicable benefit
under Articles 4, 5, 6, 7 or 8 of the Plan shall completely discharge all
obligations to a Participant and his or her designated Beneficiaries under this
Plan and the Participant’s Election Form and Plan Agreement shall terminate.

 

ARTICLE 12

Administration

 

12.1                           Committee Duties.  Except as otherwise provided in this
Article 12, this Plan shall be administered by a Committee which shall
consist of the Board, or such committee as the Board shall appoint.  Members of the Committee may be Participants
under this Plan.  The Committee shall
also have the discretion and authority to (i) make, amend, interpret, and
enforce all appropriate rules and regulations for the administration of this
Plan and (ii) decide or resolve any and all questions including interpretations
of this Plan, as may arise in connection with the Plan.  Any individual serving on the Committee who
is a Participant shall not vote or act on any matter relating solely to himself
or herself. When making a determination or calculation, the Committee shall be
entitled to rely on information furnished by a Participant or the Company.

 

12.2                           Administration Upon Change In Control.  For purposes of this Plan, the Company shall
be the “Administrator” at all times prior to the occurrence of a Change in
Control.  Upon and after the occurrence
of a Change in Control, the “Administrator” shall be an independent third party
selected by the trustee of the Master Trust and approved by the individual who,
immediately prior to such event, was the Company’s Chief Executive Officer or,
if not so identified, the Company’s highest ranking officer (the
“Ex-CEO”).  The Administrator shall have
the discretionary power to determine all questions arising in connection with
the administration of the Plan and the interpretation of the Plan and Trust
including, but not limited to benefit entitlement determinations; provided,
however, upon and after the occurrence of a Change in Control, the
Administrator shall have no power to direct the investment of Plan assets or
assets of the Trust or select any investment manager or custodial firm for the
Plan or Trust.  Upon and after the
occurrence of a Change in Control, the Company must: (i) pay all reasonable
administrative expenses and fees of the Administrator; and (ii) supply full and
timely information to the Administrator or all matters relating to the

 

21

 

Plan,
the Trust, the Participants and their Beneficiaries, the Account Balances of
the Participants, the date of circumstances of the Retirement, Disability,
death or Termination of Employment of the Participants, and such other
pertinent information as the Administrator may reasonably require.  Upon and after a Change in Control, the
Administrator may be terminated (and a replacement appointed) by the trustee of
the Master Trust only with the approval of the Ex-CEO.  Upon and after a Change in Control, the
Administrator may not be terminated by the Company.

 

12.3                           Agents. 
In the administration of this Plan, the Committee may, from time to
time, employ agents and delegate to them such administrative duties as it sees
fit (including acting through a duly appointed representative) and may from
time to time consult with counsel who may be counsel to any Employer.

 

12.4                           Binding Effect of Decisions.  The decision or action of the Administrator
with respect to any question arising out of or in connection with the
administration, interpretation and application of the Plan and the rules and
regulations promulgated hereunder shall be final and conclusive and binding
upon all persons having any interest in the Plan.

 

12.5                           Indemnity of Committee.  The Company shall indemnify and hold
harmless the members of the Committee, and any Employee or agent to whom the
duties of the Committee may be delegated, and the Administrator against any and
all claims, losses, damages, expenses or liabilities arising from any action or
failure to act with respect to this Plan, except in the case of gross
negligence or willful misconduct by the Committee, any of its members, any such
Employee or the Administrator.

 

12.6                           Employer Information.  To enable the Committee and/or Administrator
to perform its functions, the Company and each Employer shall supply full and
timely information to the Committee and/or Administrator, as the case may be,
on all matters relating to the compensation of its Participants, the date and
circumstances of the Retirement, Disability, death or Termination of Employment
of its Participants, and such other pertinent information as the Committee or
Administrator may reasonably require.

 

ARTICLE 13

Other Benefits and Agreements

 

13.1                           Coordination with Other Benefits.  The benefits provided for a Participant and
Participant’s Beneficiary under the Plan are in addition to any other benefits
available to such Participant under any other plan or program for employees of
the Participant’s Employer.  The Plan
shall supplement and shall not supersede, modify or amend any other such plan
or program except as may otherwise be expressly provided.

 

22

 

ARTICLE 14

Claims Procedures

 

14.1                           Presentation of Claim.  Any Participant or Beneficiary of a deceased
Participant (such Participant or Beneficiary being referred to below as a
“Claimant”) may deliver to the Committee a written claim for a determination
with respect to the amounts distributable to such Claimant from the Plan.  If such a claim relates to the contents of a
notice received by the Claimant, the claim must be made within sixty (60) days
after such notice was received by the Claimant.  All other claims must be made within one hundred eighty (180)
days of the date on which the event that caused the claim to arise
occurred.  The claim must state with
particularity the determination desired by the Claimant.

 

14.2                           Notification of Decision.  The Committee shall consider a Claimant’s
claim within a reasonable time, and shall notify the Claimant in writing:

 

(a)                                  that the Claimant’s requested
determination has been made, and that the claim has been allowed in full; or

 

(b)                                 that the Committee has reached a conclusion
contrary, in whole or in part, to the Claimant’s requested determination, and
such notice must set forth in a manner calculated to be understood by the
Claimant:

 

(i)                                     the
specific reason(s) for the denial of the claim, or any part of it;

 

(ii)                                  specific
reference(s) to pertinent provisions of the Plan upon which such denial was
based;

 

(iii)                               a
description of any additional material or information necessary for the
Claimant to perfect the claim, and an explanation of why such material or
information is necessary; and

 

(iv)                              an
explanation of the claim review procedure set forth in Section 14.3 below.

 

14.3                           Review of a Denied Claim.  Within sixty (60) days after receiving a
notice from the Committee that a claim has been denied, in whole or in part, a
Claimant (or the Claimant’s duly authorized representative) may file with the
Committee a written request for a review of the denial of the claim.  Thereafter, but not later than thirty (30)
days after the review procedure began, the Claimant (or the Claimant’s duly
authorized representative):

 

(a)                                  may review pertinent documents;

 

(b)                                 may submit written comments or other
documents; and/or

 

23

 

(c)                                  may request a hearing, which the
Committee, in its sole discretion, may grant.

 

14.4                           Decision on Review.  The Committee shall render its decision on
review promptly, and not later than sixty (60) days after the filing of a
written request for review of the denial, unless a hearing is held or other
special circumstances require additional time, in which case the Committee’s
decision must be rendered within one hundred twenty (120) days after such
date.  Such decision must be written in
a manner calculated to be understood by the Claimant, and it must contain:

 

(a)                                  specific reasons for the decision;

 

(b)                                 specific reference(s) to the pertinent
Plan provisions upon which the decision was based; and

 

(c)                                  such other matters as the Committee deems
relevant.

 

14.5                           Subsequent Action; Mandatory Arbitration.

 

(a)                                  Subsequent Action.  A Claimant’s compliance with the foregoing
provisions of this Article 14 is a mandatory prerequisite to a Claimant’s
right to commence any subsequent action with respect to any claim for benefits
under this Plan.

 

(b)                                 Mandatory Arbitration.  Any controversy or claim arising out of or
relating to this Plan shall be resolved by arbitration in accordance with the
Commercial Arbitration Rules of the American Arbitration Association.  Arbitration shall be by a single arbitrator
experienced in the matters at issue and selected by the parties in accordance
with the Commercial Arbitration Rules of the American Arbitration
Association.  The arbitration shall be
held in such place in Minneapolis, Minnesota, as may be specified by the
arbitrator (or any place agreed to by the parties and the arbitrator).  The decision of the arbitrator shall be
final and binding as to any matters submitted under this Article 14;
provided, however, if necessary, such decision may be enforced in any court
having jurisdiction over the subject matter or over any of the parties to this
Plan.  All costs and expenses incurred
in connection with any such arbitration proceeding (including reasonable
attorneys’ fees) shall be borne by the party against which the decision is
rendered.  If the arbitrator’s decision
is a compromise, the determination of which party or parties bears the costs
and expenses incurred in connection with such arbitration proceeding shall be
made by the arbitrator on the basis of the arbitrator’s assessment of the
relative merits of the parties’ positions.

 

24

 

ARTICLE 15

Establishment of The Trust

 

15.1                           Establishment and Funding of the Trust.
The Company shall establish the Trust. The Company shall at least annually
transfer over to the Trust such assets as the Company determines, in its sole
discretion, are necessary to provide, on a present value basis, for its
respective future liabilities created with respect to the Annual Deferral
Amounts, Company Contribution Amounts, and Company Matching Amounts for the
Participants for all periods prior to the transfer, as well as any debits and
credits to the Participants’ Account Balances for all periods prior to the
transfer, taking into consideration the value of the assets in such Trust at
the time of the transfer.

 

15.2                           Interrelationship of the Plan and the Trust.  The provisions of the Plan shall govern the
rights of a Participant to receive distributions pursuant to the Plan.  The provisions of the Trust shall govern the
rights of the Company, the Participants, and the creditors of the Company and,
where applicable, creditors of Employers other than the Company, to the assets
transferred to the Trust.  The Company
shall at all times remain liable to carry out its obligations under the Plan.

 

15.3                           Distributions From the Trust.  The Company’s obligations under the Plan may
be satisfied with assets of the Trust distributed pursuant to the terms of the
Trust, and any such distribution shall reduce the Company’s obligations under
this Plan.

 

ARTICLE 16

Miscellaneous

 

16.1                           Status of Plan.  The Plan is intended to be a plan that is not qualified within the
meaning of Code Section 401(a) and that “is unfunded and is maintained by
an employer primarily for the purpose of providing deferred compensation for a
select group of management or highly compensated employees” within the meaning
of ERISA Sections 201(2), 301(a)(3) and 401(a)(1).  The Plan shall be administered and interpreted to the extent possible
in a manner consistent with that intent.

 

16.2                           Unsecured General Creditor.  Participants and their Beneficiaries, heirs,
successors and assigns shall have no legal or equitable rights, interests or
claims in any property or assets of an Employer.  For purposes of the payment of benefits under this Plan, any and
all of the Company’s assets shall be, and remain, the general, unpledged
unrestricted assets of the Company.  The
Company’s obligation under the Plan shall be merely that of an unfunded and
unsecured promise to pay money in the future.

 

16.3                           Employer Liability.  The Company’s liability for the payment of
benefits, and the obligation of any Employer, shall be defined only by the Plan
and the Election Form and

 

25

 

Plan
Agreements, as entered into between the Company, the Employer (if different
from the Company) and a Participant. 
Neither the Company nor an Employer shall have any obligation to a
Participant under the Plan except as expressly provided in the Plan and his or
her Election Form and Plan Agreement.

 

16.4                           Nonassignability.  Neither a Participant nor any other person
shall have any right to commute, sell, assign, transfer, pledge, anticipate,
mortgage or otherwise encumber, transfer, hypothecate, alienate or convey in
advance of actual receipt, the amounts, if any, payable hereunder, or any part
thereof, which are, and all rights to which are expressly declared to be,
unassignable and non-transferable.  No
part of the amounts payable shall, prior to actual payment, be subject to seizure,
attachment, garnishment or sequestration for the payment of any debts,
judgments, alimony or separate maintenance owed by a Participant or any other
person, be transferable by operation of law in the event of a Participant’s or
any other person’s bankruptcy or insolvency or be transferable to a spouse as a
result of a property settlement or otherwise.

 

16.5                           Not a Contract of Employment.  The terms and conditions of this Plan shall
not be deemed to constitute a contract of employment between any Employer and
the Participant.  Such employment is
hereby acknowledged to be an “at will” employment relationship that can be
terminated at any time for any reason, or no reason, with or without cause, and
with or without notice, unless expressly provided in a written employment
agreement.  Nothing in this Plan shall
be deemed to give a Participant the right to be retained in the service of any
Employer, either as an Employee or a Director, or to interfere with the right of
any Employer to discipline or discharge the Participant at any time.

 

16.6                           Furnishing Information.  A Participant or his or her Beneficiary will
cooperate with the Committee by furnishing any and all information requested by
the Committee and take such other actions as may be requested in order to
facilitate the administration of the Plan and the payments of benefits
hereunder, including but not limited to taking such physical examinations as
the Committee may deem necessary.

 

16.7                           Terms. 
Whenever any words are used herein in the masculine, they shall be
construed as though they were in the feminine in all cases where they would so
apply; and whenever any words are used herein in the singular or in the plural,
they shall be construed as though they were used in the plural or the singular,
as the case may be, in all cases where they would so apply.

 

16.8                           Captions. 
The captions of the articles, sections and paragraphs of this Plan are
for convenience only and shall not control or affect the meaning or
construction of any of its provisions.

 

26

 

16.9                           Governing Law.  Subject to ERISA, the provisions of this Plan shall be construed
and interpreted according to the internal laws of the State of Minnesota
without regard to its conflicts of laws principles.

 

16.10                     Notice. 
Any notice or filing required or permitted to be given to the Committee
under this Plan shall be sufficient if in writing and hand-delivered, or sent
by registered or certified mail, to the address below:

 

	
   

  	
   

  	
  Best Buy Co., Inc.

  
	
   

  	
   

  	
  Office of the General
  Counsel

  
	
   

  	
   

  	
  7601 Penn Avenue South

  
	
   

  	
   

  	
  Richfield, MN 55423

  
	
   

  	
  with a copy to:

  	
   

  
	
   

  	
   

  	
  Elliot S. Kaplan, Esq.

  
	
   

  	
   

  	
  Robins, Kaplan, Miller
  & Ciresi L.L.P.

  
	
   

  	
   

  	
  2800 LaSalle Plaza

  
	
   

  	
   

  	
  800 LaSalle Avenue

  
	
   

  	
   

  	
  Minneapolis, MN 55402

  

 

Such notice shall be
deemed given as of the date of delivery or, if delivery is made by mail, as of
the date shown on the postmark on the receipt for registration or
certification.

 

Any notice or filing
required or permitted to be given to a Participant under this Plan shall be
sufficient if in writing and hand-delivered, or sent by mail, to the last known
address of the Participant.

 

16.11                     Successors.  The provisions of this Plan shall bind and inure to the benefit
of the Company and, where applicable, the Participant’s Employer, their
respective successors and assigns, and the Participant and the Participant’s
designated Beneficiaries.

 

16.12                     Spouse’s Interest.  The interest in the benefits hereunder of a
spouse of a Participant who has predeceased the Participant shall automatically
pass to the Participant and shall not be transferable by such spouse in any
manner, including but not limited to such spouse’s will, nor shall such
interest pass under the laws of intestate succession.

 

16.13                     Validity. 
In case any provision of this Plan shall be illegal or invalid for any
reason, said illegality or invalidity shall not affect the remaining parts
hereof, but this Plan shall be construed and enforced as if such illegal or
invalid provision had never been inserted herein.

 

16.14                     Incompetence.  If the Committee determines in its discretion that a benefit under
this Plan is to be paid to a minor, a person declared incompetent or to a
person incapable of handling the disposition of that person’s property, the
Committee may direct payment of such benefit to the guardian, legal
representative or person having the care and custody of such minor,

 

27

 

incompetent
or incapable person.  The Committee may
require proof of minority, incompetence, incapacity or guardianship, as it may
deem appropriate prior to distribution of the benefit.  Any payment of a benefit shall be a payment
for the account of the Participant and the Participant’s Beneficiary, as the
case may be, and shall be a complete discharge of any liability under the Plan
for such payment amount.

 

16.15                     Court Order.  The Committee is authorized to make any payments directed by
court order in any action in which the Plan or the Committee has been named as
a party.  In addition, if a court determines
that a spouse or former spouse of a Participant has an interest in the
Participant’s benefits under the Plan in connection with a property settlement
or otherwise, the Committee, in its sole discretion, shall have the right,
notwithstanding any election made by a Participant, to immediately distribute
the spouse’s or former spouse’s interest in the Participant’s benefits under
the Plan to that spouse or former spouse.

 

16.16                     Distribution in the Event of Taxation.

 

(a)                                  In General. 
If, for any reason, all or any portion of a Participant’s benefits under
this Plan becomes taxable to the Participant prior to receipt, a Participant
may petition the Committee before a Change in Control, or the Administrator of
the Trust after a Change in Control, for a distribution of that portion of his
or her benefit that has become taxable. 
Upon the grant of such a petition, which grant shall not be unreasonably
withheld (and, after a Change in Control, shall be granted), the  Company shall distribute to the Participant
immediately available funds in an amount equal to the taxable portion of his or
her benefit (which amount shall not exceed a Participant’s unpaid Account
Balance under the Plan).  If the
petition is granted, the tax liability distribution shall be made within ninety
(90) days of the date when the Participant’s petition is granted.  Such a distribution shall affect and reduce
the benefits to be paid under this Plan.

 

(b)                                 Trust. 
If the Trust terminates in accordance with Section 3.6(e) of such
Trust and benefits are distributed from such Trust to a Participant in
accordance with that Section, the Participant’s benefits under this Plan shall
be reduced to the extent of such distributions.

 

16.17                     Insurance.  The Company, on its own behalf or on behalf of the trustees
of  the Trust, and, in its sole
discretion, may apply for and procure insurance on the life of the Participant,
in such amounts and in such forms as the trustees may choose.  The Company or the trustees of any of the
Trust, as the case may be, shall be the sole owner and beneficiary of any such
insurance.  The Participant shall have
no interest whatsoever in any such policy or policies, and at the request of
the Company shall submit to medical examinations and supply such information
and execute such documents as may be required by the insurance company or
companies to whom the Company has applied for insurance.

 

28

 

16.18                     Legal Fees To Enforce Rights After Change in Control.  The Company is aware that upon the
occurrence of a Change in Control, the Board or the board of directors of a
Participant’s Employer (which might then be composed of new members) or a
shareholder of the Company or the Participant’s Employer, or of any successor
corporation might then cause or attempt to cause the Company, the Participant’s
Employer or such successor to refuse to comply with its obligations under the
Plan and might cause or attempt to cause the Company or the Participant’s
Employer to institute, or may institute, litigation seeking to deny
Participants the benefits intended under the Plan.  In these circumstances, the purpose of the Plan could be
frustrated.  Accordingly, if, following
a Change in Control, it should appear to any Participant that the Company, the
Participant’s Employer or any successor corporation has failed to comply with
any of its obligations under the Plan or any agreement thereunder or, if the
Company, such Employer or any other person takes any action to declare the Plan
void or unenforceable or institutes any litigation or other legal action
designed to deny, diminish or to recover from any Participant the benefits
intended to be provided, then the Company irrevocably authorizes such
Participant to retain counsel of his or her choice at the expense of the
Company to represent such Participant in connection with the initiation or
defense of any litigation or other legal action, whether by or against the
Company, the Participant’s Employer or any director, officer, shareholder or
other person affiliated with the Company, the Participant’s Employer or any
successor thereto in any jurisdiction.

 

IN WITNESS WHEREOF, the
Company has signed this Fourth Amended and Restated Plan document effective as
of April 1, 2004.

 

 

	
   

  	
  Best Buy Co., Inc., a
  Minnesota corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John C. Walden

  	
   

  
	
   

  	
   

  	
  John C. Walden

  
	
   

  	
   

  	
  Executive Vice
  President

  
	
   

  	
   

  	
  Human Capital and
  Leadership

  

 

29

 

TABLE OF CONTENTS

 

	
  ARTICLE 1.

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2.

  	
  Selection, Enrollment, Commencement of Participation

  	
   

  
	
  2.1

  	
  Selection
  by Committee

  	
   

  
	
  2.2

  	
  Enrollment
  Requirements

  	
   

  
	
  2.3

  	
  Commencement of
  Participation

  	
   

  
	
  2.4

  	
  Termination
  of Participation and/or Deferrals

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3.

  	
  Deferral Commitments/Company
  Matching/Crediting/Taxes

  	
   

  
	
  3.1

  	
  Minimum
  Deferral

  	
   

  
	
  3.2

  	
  Maximum
  Deferral

  	
   

  
	
  3.3

  	
  Election
  to Defer; Effect of Election Form and Plan Agreement

  	
   

  
	
  3.4

  	
  Withholding of
  Annual Deferral Amounts

  	
   

  
	
  3.5

  	
  Company Contribution Amount

  	
   

  
	
  3.6

  	
  Company
  Matching Amount

  	
   

  
	
  3.7

  	
  Investment of Trust Assets

  	
   

  
	
  3.8

  	
  Vesting

  	
   

  
	
  3.9

  	
  Crediting/Debiting
  of Account Balances

  	
   

  
	
  3.10

  	
  FICA and
  Other Taxes

  	
   

  
	
  3.11

  	
  Distributions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4

  	
  In-Service Distribution; Unforeseeable
  Financial Emergencies; Withdrawal

  	
   

  
	
  4.1

  	
  In-Service
  Distribution

  	
   

  
	
  4.2

  	
  Other
  Benefits Take Precedence Over In-Service Distribution

  	
   

  
	
  4.3

  	
  Withdrawal
  Payout/Suspensions for Unforeseeable Financial Emergencies

  	
   

  
	
  4.4

  	
  Withdrawal
  Election

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5

  	
  Retirement Benefit

  	
   

  
	
  5.1

  	
  Retirement
  Benefit

  	
   

  
	
  5.2

  	
  Payment of Retirement
  Benefit

  	
   

  
	
  5.3

  	
  Death
  Prior to Completion of Retirement Benefit

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6

  	
  Pre-Retirement Survivor Benefit

  	
   

  
	
  6.1

  	
  Pre-Retirement Survivor
  Benefit

  	
   

  
	
  6.2

  	
  Payment of
  Pre-Retirement Survivor Benefit

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7

  	
  Termination Benefit

  	
   

  
	
  7.1

  	
  Termination
  Benefit

  	
   

  
	
  7.2

  	
  Payment of Termination
  Benefit

  	
   

  

 

i

 

	
  ARTICLE 8

  	
  Disability Waiver and Benefit

  	
   

  
	
  8.1

  	
  Disability
  Waiver

  	
   

  
	
  8.2

  	
  Continued
  Eligibility; Disability Benefit

  	
   

  
	
  8.3

  	
  Short-Term Disability
  Waiver

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9.

  	
  Beneficiary Designation

  	
   

  
	
  9.1

  	
  Beneficiary

  	
   

  
	
  9.2

  	
  Beneficiary
  Designation; Change; Spousal Consent

  	
   

  
	
  9.3

  	
  Acknowledgment

  	
   

  
	
  9.4

  	
  No Beneficiary Designation

  	
   

  
	
  9.5

  	
  Doubt
  as to Beneficiary

  	
   

  
	
  9.6

  	
  Discharge
  of Obligations

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10.

  	
  Leave of Absence

  	
   

  
	
  10.1

  	
  Paid
  Leave of Absence

  	
   

  
	
  10.2

  	
  Unpaid
  Leave of Absence

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11.

  	
  Termination, Amendment or Modification

  	
   

  
	
  11.1

  	
  Termination

  	
   

  
	
  11.2

  	
  Amendment

  	
   

  
	
  11.3

  	
  Election Form and
  Plan Agreement

  	
   

  
	
  11.4

  	
  Effect of
  Payment

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 12.

  	
  Administration

  	
   

  
	
  12.1

  	
  Committee
  Duties

  	
   

  
	
  12.2

  	
  Administration
  Upon Change In Control

  	
   

  
	
  12.3

  	
  Agents

  	
   

  
	
  12.4

  	
  Binding Effect of Decisions

  	
   

  
	
  12.5

  	
  Indemnity
  of Committee

  	
   

  
	
  12.6

  	
  Employer
  Information

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 13.

  	
  Other Benefits and Agreements

  	
   

  
	
  13.1

  	
  Coordination with
  Other Benefits

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 14.

  	
  Claims Procedures

  	
   

  
	
  14.1

  	
  Presentation
  of Claim

  	
   

  
	
  14.2

  	
  Notification
  of Decision

  	
   

  
	
  14.3

  	
  Review
  of a Denied Claim

  	
   

  
	
  14.4

  	
  Decision on
  Review

  	
   

  
	
  14.5

  	
  Subsequent
  Action; Mandatory Arbitration

  	
   

  

 

ii

 

	
  ARTICLE 15

  	
  Establishment of The Trust

  	
   

  
	
  15.1

  	
  Establishment
  and Funding of the Trust

  	
   

  
	
  15.2

  	
  Interrelationship
  of the Plan and the Trust

  	
   

  
	
  15.3

  	
  Distributions From the
  Trust

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 16.

  	
  Miscellaneous

  	
   

  
	
  16.1

  	
  Status of Plan

  	
   

  
	
  16.2

  	
  Unsecured General Creditor

  	
   

  
	
  16.3

  	
  Employer
  Liability

  	
   

  
	
  16.4

  	
  Nonassignability

  	
   

  
	
  16.5

  	
  Not a Contract of
  Employment

  	
   

  
	
  16.6

  	
  Furnishing
  Information

  	
   

  
	
  16.7

  	
  Terms

  	
   

  
	
  16.8

  	
  Captions

  	
   

  
	
  16.9

  	
  Governing Law

  	
   

  
	
  16.10

  	
  Notice

  	
   

  
	
  16.11

  	
  Successors

  	
   

  
	
  16.12

  	
  Spouse’s
  Interest

  	
   

  
	
  16.13

  	
  Validity

  	
   

  
	
  16.14

  	
  Incompetence

  	
   

  
	
  16.15

  	
  Court Order

  	
   

  
	
  16.16

  	
  Distribution in
  the Event of Taxation

  	
   

  
	
  16.17

  	
  Insurance

  	
   

  
	
  16.18

  	
  Legal
  Fees To Enforce Rights After Change in Control

  	
   

  

 

iii

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}]]