Deposit Agreement between Brookfield Homes Corporation and Trilon International Inc. dated December 31, 2003
Brookfield Homes Corporation and Trilon International Inc. have agreed that Brookfield may deposit funds with Trilon in U.S. dollars under a demand deposit facility. Deposits will earn interest at a rate of 3-month LIBOR plus 50 basis points. Brookfield must provide one business day's notice for deposits and for withdrawals of $10 million or more, and same-day notice by 10am EST for smaller withdrawals. The agreement outlines the procedures for deposits and withdrawals and includes the provision of Trilon's latest audited financial statements.
EXHIBIT 4.2
December 31, 2003
Brookfield Homes Corporation
12865 Pointe Del Mar, Suite 200
Del Mar, CA 92014
Dear Sirs:
The following terms will highlight the conditions under which Brookfield Homes Corporation may from time to time deposit funds with Trilon International Inc.
DEPOSIT ENTITY: Trilon International Inc. will open appropriate accounts for Brookfield Homes Corporation to receive funds. CURRENCY: Deposits will be made in United States dollars. MATURITY DATE: This will be a demand deposit facility. INTEREST RATES: Deposit amounts will earn interest as follows: 3 Month Libor + 50 basis points DEPOSITS: Notice of any deposit amounts should be made One business day prior to deposit. WITHDRAWAL OF FUNDS: Brookfield Homes Corporation will notify Trilon International Inc. of deposit withdraws in accordance with the following notice timelines:
4 USD10 million or greater: One business day prior to withdrawal of funds.
4 Less than USD10 million: Notice must be received by 10am EST on the day of withdrawal.
For your information enclosed is a copy of our most recent audited financial statements.
Yours very truly,
Trilon International Inc. /s/ GEORGE GLEADALL
George Gleadall /s/ ANDRE PROCOPE
Andre Procope
Agreed and Accepted
Brookfield Homes Corporation
/s/ IAN G. COCKWELL
Ian G. Cockwell
/s/ PAUL G. KERRIGAN
Paul G. Kerrigan
