Refer to Exhibit 9.8A. Explain why Reitmans uses letters of credit and how the working capital loan relates to them.

EXHIBIT 9.8A Excerpt from Reitmans' 2017 Annual Report, Management Discussion and Analysis The Company has unsecured borrowing and working capital credit facilities available up to an amount of $75 million or its U.S. dollar equivalent. As at January 28, 2017, $9.7 million (January 30, 2016- $14.1 million) of the operating lines of credit were committed for documentary and standby letters of credit. These credit facilities are used principally for U.S. dollar letters of credit to satisfy international third-party vendors which require such backing before confirming purchase orders issued by the Company and to support U.S. dollar foreign exchange forward contract purchases. The Company rarely uses such credit facilities for other purposes. The reduction in the commitments under the operating lines of credit reflects the Company's initiative to change payment settlement from documentary letters of credit towards open credit. The Company has granted irrevocable standby letters of credit, issued by highly-rated financial institutions, to third parties to indemnify them in the event the Company does not perform its contractual obligations. As at January 28,2017, the maximum potential liability under these guarantees was $2.8 million (January 30, 2016- $2.8 million). The standby letters of credit mature at various dates during fiscal 2018. The Company has recorded no liability with respect to these guarantees, as the Company does not expect to make any payments for these items. EXHIBIT 9.8A Excerpt from Reitmans' 2017 Annual Report, Management Discussion and Analysis The Company has unsecured borrowing and working capital credit facilities available up to an amount of $75 million or its U.S. dollar equivalent. As at January 28, 2017, $9.7 million (January 30, 2016- $14.1 million) of the operating lines of credit were committed for documentary and standby letters of credit. These credit facilities are used principally for U.S. dollar letters of credit to satisfy international third-party vendors which require such backing before confirming purchase orders issued by the Company and to support U.S. dollar foreign exchange forward contract purchases. The Company rarely uses such credit facilities for other purposes. The reduction in the commitments under the operating lines of credit reflects the Company's initiative to change payment settlement from documentary letters of credit towards open credit. The Company has granted irrevocable standby letters of credit, issued by highly-rated financial institutions, to third parties to indemnify them in the event the Company does not perform its contractual obligations. As at January 28,2017, the maximum potential liability under these guarantees was $2.8 million (January 30, 2016- $2.8 million). The standby letters of credit mature at various dates during fiscal 2018. The Company has recorded no liability with respect to these guarantees, as the Company does not expect to make any payments for these items