Contract
0 HP EHUVKLS 3 ROLFLHV
5 LJ KWV 5 HTXLUHP HQWVDQG 2 EOLJ DWLRQV ’ HFHP EHU 9 HUVLRQ ) ,1 $ /
7 KHVH SROLFLHVVXSHUVHGH DOOH[ LVWLQJ ( 2 6 UXOHVDQG SROLFLHVUHJ DUGLQJ P HP EHUVKLS
0<DYI ] N ] [ jI [ jh
0 HP EHUVKLS 3 ROLFLHV
’ ( ) ,1 ,7 ,2 1 6
0 ( 0 %( 5 &/ $ 6 6 ( 6
D $ FWLYH 0 HP EHUVKLS LVRSHQ WR
E $ VVRFLDWH 0 HP EHUVKLS LVRSHQ WR
0 ( 0 %( 5 5 ,* + 7 6
D $ FWLYH 0 HP EHU
L ) XOO6 HUYLFH &OXE LL 6 HQLRU&OXE
E $ VVRFLDWH 0 HP EHU
L &RP P XQLW\ $ VVRFLDWLRQ LL $ VVRFLDWH / HDJ XH
0 ( 0 %( 5 5 ( 4 8 ,5 ( 0 ( 1 7 6
D $ FWLYH 0 HP EHUV
L ) XOO6 HUYLFH &OXE LL 6 HQLRU&OXE
E $ VVRFLDWH 0 HP EHUV
L &RP P XQLW\ $ VVRFLDWLRQ LL $ VVRFLDWH / HDJ XH
LLL 6 XSSRUWLQJ $ VVRFLDWH 0 HP EHU
0 ( 0 %( 5 2 %/ ,* $ 7 ,2 1 6
D $ FWLYH 0 HP EHU
L ) XOO6 HUYLFH &OXE LL 6 HQLRU&OXE
E $ VVRFLDWH 0 HP EHU
L &RP P XQLW\ $ VVRFLDWLRQ LL $ VVRFLDWH / HDJ XH
LLL 6 XSSRUWLQJ $ VVRFLDWH 0 HP EHU
1 ( : 0 ( 0 %( 5 5 ( 4 8 ,5 ( 0 ( 1 7 6
D $ FWLYH 0 HP EHU
L ) XOO6 HUYLFH &OXE LL 6 HQLRU&OXE
E $ VVRFLDWH 0 HP EHU
L &RP P XQLW\ $ VVRFLDWLRQ LL $ VVRFLDWH / HDJ XH
LLL 6 XSSRUWLQJ $ VVRFLDWH 0 HP EHU
1 ( : 0 ( 0 %( 5 $ 6 6 ( 6 6 0 ( 1 7
D $ FWLYH 0 HP EHU
L ) XOO6 HUYLFH &OXE LL 6 HQLRU&OXE
E $ VVRFLDWH P HP EHU
L &RP P XQLW\ $ VVRFLDWLRQ LL $ VVRFLDWH / HDJ XH
LLL 6 XSSRUWLQJ $ VVRFLDWH 0 HP EHU
’ ( ) ,1 ,7 ,2 1 6
$ FWLYH 0 HP EHUVKLS VKDOOP HDQ DQ\ ( 2 6 0 HP EHU&OXE Z LWK D FXUUHQWP HP EHUVKLS
&OXE UHIHUVWR DQ ( 2 6 0 HP EHUWKDWUHJ LVWHUVSOD\ HUVWR WDNH SDUWLQ WUDLQLQJ DQG FRP SHWLWLRQ
) XOO6 HUYLFH &OXE UHIHUVWR DQ ( 2 6 P HP EHU&OXE WKDWRIIHUVSURJ UDP P LQJ WR \ RXWK SDUWLFLSDQWV DQG P D\ DOVR RIIHUSURJ UDP P LQJ WR VHQLRUSDUWLFLSDQWV
6 HQLRU&OXE UHIHUVWR DQ ( 2 6 P HP EHU&OXE WKDWRIIHUVSURJ UDP P LQJ WR RQO\ VHQLRU SDUWLFLSDQWV
$ VVRFLDWH 0 HP EHU UHIHUVWR DQ RUJ DQL] DWLRQ WKDWLVD P HP EHURI WKH ( 2 6 Z LWKRXWYRWLQJ ULJ KWVDQG VXFK RWKHUULJ KWVDVGHVFULEHG EHORZ
$ VVRFLDWH / HDJ XH LVD OHDJ XH WKDWRIIHUVOHDJ XH FRP SHWLWLRQ VHUYLFHVWR ( 2 6 0 HP EHU&OXEVDQG LV QRWJ RYHUQHG E\ 2 QWDULR RU&DQDGD 6 RFFHU
&RP P XQLW\ $ VVRFLDWLRQ UHIHUVWR D QHLJ KERXUKRRG EDVHG FRP P XQLW\ RUJ DQL] DWLRQ WKDWRIIHUVD YDULHW\ RI UHFUHDWLRQDODQG FXOWXUDOSURJ UDP VDQG VHUYLFHV VRFFHUEHLQJ RQH RI WKRVH SURJ UDP V
6 XSSRUWLQJ $ VVRFLDWH 0 HP EHUUHIHUVWR D VRFFHURUJ DQL] DWLRQ WKDWWUDLQVRURWKHUZ LVH KHOSVSURJ UHVV WKH GHYHORSP HQWRI SOD\ HUV FRDFKHV P DWFK RIILFLDOVRUVRFFHULQ J HQHUDO1 RWWR LQFOXGH DQ\ RUJ DQL] DWLRQ WKDWRSHUDWHVDQ\ WHDP RUVTXDG RUHQWHUVLQWR DQ\ HYHQWVQRWVDQFWLRQHG E\ 2 QWDULR 6 RFFHU
7HDP 2 IILFLDO UHIHUVWR DQ\ LQGLYLGXDOUHJ LVWHUHG WR D &OXE 0 HP EHU¶VWHDP DVD + HDG &RDFK
$ VVLVWDQW&RDFK 7HDP 0 DQDJ HU $ VVLVWDQW0 DQDJ HU RU&OXE + HDG &RDFK 7HFKQLFDO’ LUHFWRURU7HFKQLFDO6 WDII VXFK DVD * RDONHHSHU&RDFK $ WKOHWLF
7 KHUDSLVWHWF
6 DQFWLRQHG 2 UJ DQL] DWLRQ VKDOOP HDQ DQ DFWLYH VRFFHURUJ DQL] DWLRQ WKDWLVD UHJ LVWHUHG P HP EHURI WKH ( 2 6 2 QWDULR 6 RFFHURUDQ\ RWKHUJ RYHUQLQJ ERG\ XQGHU) ,) $
6 DQFWLRQHG &RP SHWLWLRQ VKDOOP HDQ D FRP SHWLWLRQ Z KLFK KDVREWDLQHG WKH DSSURYDORI WKH ( 2 6 2 QWDULR
6 RFFHURUDQRWKHU) ,) $ 0 HP EHURUJ DQL] DWLRQ LQ DFFRUGDQFH Z LWK WKDW RUJ DQL] DWLRQ¶VJ RYHUQLQJ GRFXP HQWV
* UDVVURRWV 6 WDQGDUGV VKDOOP HDQ D GRFXP HQWGHYHORSHG DQG UHFRP P HQGHG E\ 2 QWDULR 6 RFFHU¶V3 OD\ HU ’ HYHORSP HQW3 URJ UDP LQ DOLJ QP HQWZ LWK &DQDGD 6 RFFHU
$ IILOLDWLRQ UHIHUVWR D Z ULWWHQ DJ UHHP HQWZ LWK DQRWKHU( 2 6 $ FWLYH 0 HP EHUWKDWDOORZ VIRU P RYHP HQWRI SOD\ HUV LQ DFFRUGDQFH Z LWK DOO( 2 6 DQG 2 QWDULR 6 RFFHUJ RYHUQLQJ GRFXP HQWV
3 UREDWLRQDU\ VKDOOP HDQ WKH SHULRG RI WLP H LQ Z KLFK D 0 HP EHURUJ DQL] DWLRQ¶VDFWLYLWLHVDUH VXEMHFWWR UHYLHZ E\ WKH ( 2 6 %RDUG EHIRUH EHLQJ DGP LWWHG LQWR P HP EHUVKLS LQ WKH VXEVHTXHQWP HP EHUVKLS \ HDU
0 ( 0 %( 5 &/ $ 6 6 ( 6
7 KH ( 2 6 KDVWZ R FODVVHVRI 0 HP EHUV D $ FWLYH 0 HP EHUVKLS LV RSHQ WR
L ) XOO6 HUYLFH &OXE LL 6 HQLRU&OXE
E $ VVRFLDWH 0 HP EHUVKLS LV RSHQ WR L &RP P XQLW\ $ VVRFLDWLRQ
LL $ VVRFLDWH / HDJ XH
LLL 6 XSSRUWLQJ $ VVRFLDWH 0 HP EHU
0 ( 0 %( 5 5 ,* + 7 6
D $ F W0 HL PY ▇▇ ▇ ▇
L ) X6
OH OU&
YO LX
FE H
$ FFHVVWR DOO&DQDGD 6 RFFHU 2 QWDULR 6 RFFHUDQG ( 2 6 SURJ UDP V OHDJ XHVDQG FRP SHWLWLRQV
$ FFHVVWR 3 URYLQFLDODQG 1 DWLRQDO&KDP SLRQVKLSV
$ FFHVVWR VDQFWLRQHG WRXUQDP HQWVZ RUOGZ LGH
$ FFHVVWR 2 QWDULR 6 RFFHU¶VJ UDVVURRWVVWDQGDUGVFXUULFXOXP
$ ELOLW\ WR KRVWFRDFK DQG UHIHUHH FOLQLFVRIIHUHG E\ 2 QWDULR DQG RU&DQDGD 6 RFFHU
,QVXUDQFH FRYHUDJ H IRUDOOUHJ LVWUDQWV $ FFLGHQW/ LDELOLW\ 7 UDYHODQG 7 ▇▇▇▇ SDUW\ &HUWLILFDWHV
$ FFHVVWR 2 QWDULR 6 RFFHUFHUWLILHG 0 DWFK 2 IILFLDOVDWDOOFRP SHWLWLRQV
$ FFHVVWR 2 QWDULR 6 RFFHU¶V’ LVFLSOLQH &RP SODLQWVDQG ’ LVSXWH 5 HVROXWLRQ SURFHVVHVDQG DGP LQLVWUDWLRQ
9 RLFH DQG YRWHVDWDOO0 HP EHU0 HHWLQJ V DVZ ULWWHQ LQ WKH ( 2 6 %\ ODZ VDQG RU
$ UWLFOHV
$ FFHVVWR 2 QWDULR 6 RFFHU¶VHP SOR\ HH EHQHILWVSURJ UDP
$ ELOLW\ WR DSSO\ IRUWRXUQDP HQWVDQFWLRQLQJ
’ LVSOD\ RQ WKH ( 2 6 ¶VZ HEVLWH DVDQ $ FWLYH 0 HP EHU
L 6L H
&Q LO
RX UE
$ FFHVVWR DOO&DQDGD 6 RFFHU 2 QWDULR 6 RFFHUDQG ( 2 6 6 HQLRUSURJ UDP V OHDJ XHV DQG FRP SHWLWLRQV
$ FFHVVWR 6 HQLRU3 URYLQFLDODQG 1 DWLRQDO&KDP SLRQVKLSV
$ FFHVVWR VDQFWLRQHG 6 HQLRUWRXUQDP HQWV LQVLGH 2 QWDULR DQG RXWVLGH RI 2 QWDULR DQG &DQDGD
$ ELOLW\ WR KRVWFRDFK DQG UHIHUHH FOLQLFVRIIHUHG E\ 2 QWDULR DQG RU&DQDGD 6 RFFHU
,QVXUDQFH FRYHUDJ H IRUDOOUHJ LVWUDQWV $ FFLGHQW/ LDELOLW\ 7 UDYHODQG 7 ▇▇▇▇ SDUW\ &HUWLILFDWHV
$ FFHVVWR 2 QWDULR 6 RFFHUFHUWLILHG 0 DWFK 2 IILFLDOVDWDOOFRP SHWLWLRQV
$ FFHVVWR 2 QWDULR 6 RFFHU¶V’ LVFLSOLQH &RP SODLQWVDQG ’ LVSXWH 5 HVROXWLRQ SURFHVVHVDQG DGP LQLVWUDWLRQ
9 RLFH DQG YRWHV DVZ ULWWHQ LQ WKH ( 2 6 ¶V%\ ODZ V DWDOO0 HP EHU0 HHWLQJ V
$ FFHVVWR 2 QWDULR 6 RFFHU¶VHP SOR\ HH EHQHILWVSURJ UDP
$ ELOLW\ WR DSSO\ IRUWRXUQDP HQWVDQFWLRQLQJ
’ LVSOD\ RQ WKH ( 2 6 ¶VZ HEVLWH DVDQ $ FWLYH 0 HP EHU
E $ V V R0 HF LP DE HW UH
L & R P P$
XV QV
LR WF L\
D W L R Q
$ FFHVVWR 2 QWDULR 6 RFFHU¶VJ UDVVURRWVVWDQGDUGVFXUULFXOXP 9 RLFH DWDOO0 HP EHU0 HHWLQJ V
$ FFHVVWR DIILOLDWLRQ Z LWK DQ ( 2 6 P HP EHUIRUWKH SXUSRVHVRI \ RXWK SOD\ HU GHYHORSP HQWDQG DGYDQFHP HQW
’ LVSOD\ RQ WKH ( 2 6 ¶VZ HEVLWH DVDQ $ VVRFLDWH 0 HP EHU
L L$ V V
/R HF DL
JD XWH H
2 QWDULR 6 RFFHUFHUWLILHG 0 DWFK 2 IILFLDOVDWDOOFRP SHWLWLRQV
$ FFHVVWR 2 QWDULR 6 RFFHU¶V’ LVFLSOLQH &RP SODLQWVDQG ’ LVSXWH 5 HVROXWLRQ SURFHVVHVDQG DGP LQLVWUDWLRQ
9 RLFH DWDOO0 HP EHU0 HHWLQJ V
$ ELOLW\ WR DSSO\ IRUWRXUQDP HQWVDQFWLRQLQJ
’ LVSOD\ RQ WKH ( 2 6 ¶VZ HEVLWH DVDQ $ VVRFLDWH 0 HP EHU
L L 6 L X S S$
RV UV
W0R
HLF
PQL
EDJ
HW UH
9 RLFH DWDOO0 HP EHU0 HHWLQJ V
’ LVSOD\ RQ WKH ( 2 6 ¶VZ HEVLWH DVDQ $ VVRFLDWH 0 HP EHU
0 ( 0 %( 5 5 ( 4 8 ,5 ( 0 ( 1 7 6
D $ F W0 HL
PY EH
H U V
L ) X6
OH OU&
YO LX
FE H
0 XVWUHQHZ WKHLU&OXE 0 HP EHUVKLS DQQXDOO\ E\ $ XJ XVW VWRURQ D GDWH VHWE\ WKH ( 2 6
3 D\ WKH QHZ $ FWLYH 0 HP EHUDSSOLFDWLRQ IHH RUWKH DQQXDO$ FWLYH 0 HP EHUDQQXDO UHQHZ DOIHH DVVHWE\ WKH ( 2 6 DQQXDOO\ E\ $ XJ XVW VWRURQ D GDWH VHWE\ WKH ( 2 6 5 HJ LVWHUDOORI LWV/ HDJ XHV 7HDP V 3 OD\ HUV 7HDP 2 IILFLDOVDQG $ GP LQLVWUDWRUVZ LWK
2 QWDULR 6 RFFHU DVSUHVFULEHG E\ 2 QWDULR 6 RFFHUDQG DQQXDOO\ SURYLGH D UHJ LVWUDWLRQ VXP P DU\ LQFOXGLQJ WKH QXP EHURI SOD\ HUVUHJ LVWHUHG LQ HYHU\ &OXE SURJ UDP WR WKH
( 2 6 IRUUHFRQFLOLDWLRQ Z LWK 2 QWDULR 6 RFFHU¶VUHJ LVWUDWLRQ V\ VWHP
) RUWUDQVSDUHQF\ DQG 5 HJ LVWUDQWDJ HQF\ P DNH FOHDUWR SURVSHFWLYH 5 HJ LVWUDQWVZ KDW LVLQFOXGHG LQ WKH &OXE¶VSURJ UDP IHHV ) RUH[ ▇▇ ▇▇▇ XQLIRUP VRUWRXUQDP HQWFRVWV
6 XEP LWDQQXDOO\ D OLVWRI DOO&OXE SURJ UDP VRIIHUHG LQFOXGLQJ DQ\ SURJ UDP VRIIHUHG E\ DIILOLDWHG VXEGLYLVLRQVRI WKH &OXE
6 XEP LWDQQXDOO\ D VXP P DU\ RI WKH &OXE¶VILQDQFLDODFWLYLWLHVLQ RUGHUWR VKRZ SURRI WKDWWKH &OXE LVD J RLQJ FRQFHUQ
0 XVWKROG WKH P LQLP XP &DQDGD 6 RFFHU/ LFHQVH 4 XDOLW\ 6 HUYLFH 3 URYLGHU
3 OD\ LQJ IRUP DWVDUH DOLJ QHG WR WKH ( 2 6 ’ HYHORSP HQWP DWUL[
L L6 H
&Q LO
RX UE
0 XVWUHQHZ WKHLU&OXE 0 HP EHUVKLS DQQXDOO\ E\ $ XJ XVW VWRURQ D GDWH SURYLGHG DQQXDOO\ E\ WKH ( 2 6
3 D\ WKH QHZ $ FWLYH 6 HQLRU0 HP EHUDSSOLFDWLRQ IHH RUWKH $ FWLYH 6 HQLRU0 HP EHU DQQXDOP HP EHUVKLS UHQHZ DOIHH DVVHWE\ WKH ( 2 6 DQQXDOO\ E\ $ XJ XVW VWRURQ D GDWH VHWE\ WKH ( 2 6
5 HJ LVWHUDOORI LWV/ HDJ XHV 7HDP V 3 OD\ HUV 7HDP 2 IILFLDOVDQG $ GP LQLVWUDWRUVZ LWK
2 QWDULR 6 RFFHU DVSUHVFULEHG E\ 2 QWDULR 6 RFFHU
E $ V V R0 HF LP
DE HW
UH V
L & R P P$
XV QV
LR WF L\
D W L R Q
0 XVWUHQHZ WKHLU$ VVRFLDWH 0 HP EHUVKLS DQQXDOO\ E\ $ XJ XVW VWRURQ D GDWH SURYLGHG DQQXDOO\ E\ WKH $ VVRFLDWLRQ
3 D\ WKH QHZ $ VVRFLDWH 0 HP EHUDSSOLFDWLRQ IHH RUWKH DQQXDO$ VVRFLDWH 0 HP EHU DQQXDOP HP EHUVKLS UHQHZ DOIHH DVVHWE\ WKH ( 2 6 DQQXDOO\ E\ $ XJ XVW VWRURQ D GDWH VHWE\ WKH ( 2 6
L L$ V V
/R HF DL
JD XWH H
0 XVWUHQHZ WKHLU$ VVRFLDWH 0 HP EHUVKLS DQQXDOO\ E\ $ XJ XVW VWRURQ D GDWH SURYLGHG DQQXDOO\ E\ WKH ( 2 6
3 D\ WKH $ VVRFLDWH 0 HP EHUDSSOLFDWLRQ IHH RUWKH $ VVRFLDWH 0 HP EHUDQQXDO
P HP EHUVKLS UHQHZ DOIHH DVVHWE\ WKH ( 2 6 DQQXDOO\ E\ $ XJ XVW VWRURQ D GDWH VHW E\ WKH ( 2 6
5 HJ LVWHUZ LWK 2 QWDULR 6 RFFHU DVSUHVFULEHG E\ 2 QWDULR 6 RFFHU
3 RVWDOO/ HDJ XH SDUWLFLSDQWVSXEOLFO\ LQFOXGLQJ RQ WKH / HDJ XH Z HEVLWH
6 XEP LWDQQXDOO\ D IXOOOLVWRI DOO/ HDJ XH GLYLVLRQVDQG SURJ UDP VRIIHUHG 2 QO\ DSSURYHG SURJ UDP VDQG GLYLVLRQVZ LOOEH SHUP LWWHG WR RSHUDWH
+ DYH D P LQLP XP RI RQH / HDJ XH UHSUHVHQWDWLYH FHUWLILHG LQ 2 QWDULR 6 RFFHU¶V&KDLU ’ LVFLSOLQH DQG &HUWLILFDWLRQ &RXUVH
L 6L XL
S S$
RV UV
W0R
HLF
PQL
EDJ
HW UH
0 XVWUHQHZ WKHLU$ VVRFLDWH 0 HP EHUVKLS DQQXDOO\ E\ $ XJ XVW VWRURQ D GDWH SURYLGHG DQQXDOO\ E\ WKH ( 2 6
3 D\ WKH $ VVRFLDWH 0 HP EHUDSSOLFDWLRQ IHH RUWKH $ VVRFLDWH P HP EHUDQQXDO
P HP EHUVKLS UHQHZ DOIHH DVVHWE\ WKH ( 2 6 DQQXDOO\ E\ $ XJ XVW VWRURQ D GDWH VHW E\ WKH ( 2 6
3 URYLGH D IXOOOLVWRI DOO0 HP EHUSURJ UDP VRIIHUHG DQQXDOO\
0 ( 0 %( 5 2 %/ ,* $ 7 ,2 1 6
D $ F W0 HL PY ▇▇ ▇ ▇
L ) X6
OH OU&
YO LX
FE H
$ GKHUH WR DOO&OXE P HP EHUVKLS UHTXLUHP HQWVRI 2 QWDULR 6 RFFHU DVZ ULWWHQ LQ 2 QWDULR 6 RFFHU¶V* RYHUQLQJ ’ RFXP HQWV
: LOOQRWHQJ ▇▇ ▇ LQWHUDFWRUVKHOWHUQRQ VDQFWLRQHG UHFRJ QL] HG HQWLWLHVXQGHUWKHLU FOXE XP EUHOOD RQ D SD\ P HQWIRUDFFHVVLELOLW\ DUUDQJ HP HQWDVLWGRHVQRWDOLJ Q Z LWK WKH QDWXUDOHYROXWLRQ RI FOXEVDQG IUHH DQG IDLUP RYHP HQWRI LQGLYLGXDOVZ LWKLQ WKH ( 2 6 ¶V HFRV\ VWHP
&OXEVP XVWVXEP LWD FXUUHQWOLVWRI &OXE %RDUG RI ’ LUHFWRUVWR WKH ( 2 6 DQG SRVWWKH OLVW SXEOLFO\ RQ &OXE Z HEVLWH
0 XVWFRP P LWWR / RQJ 7HUP 3 OD\ HU’ HYHORSP HQWDVSUHVFULEHG E\ &DQDGD 6 RFFHU &OXEVP XVWKDYH D SROLF\ WKDWFRP P LWVWKH &OXE WR VWULYLQJ WR DFKLHYH J HQGHUDQG FXOWXUDOHTXLW\ Z LWKLQ WKHLU%RDUG RI ’ LUHFWRUVRUZ LWKLQ WKHLURZ QHUVKLS J URXS ,Q RWKHU Z RUGV WKH %RDUG RI ’ LUHFWRUVZ LOOEH UHIOHFWLYH RI WKH FXOWXUH DQG J HQGHUVRI LWV
P HP EHUVKLS
0 XVWKDYH SURJ UDP VWKDWWDUJ HWXQGHUUHSUHVHQWHG J URXSVDQG UHGXFH EDUULHUVWR SDUWLFLSDWLRQ DVRXWOLQHG LQ &DQDGD 6 RFFHU¶V* XLGH WR $ FFHVVLELOLW\ DQG ,QFOXVLRQ
0 XVWVXEP LWD 9 ROXQWHHU6 FUHHQLQJ 5 HSRUWDQQXDOO\ XVLQJ D P HWKRG SUHVFULEHG E\ WKH ( 2 6
3 D\ DOOLQYRLFHVIURP WKH ( 2 6 Z LWKLQ VL[ W\ GD\ V
+ DYH WKH IROORZ LQJ 3 ROLFLHV
D &KLOG 3 URWHFWLRQ 3 ROLF\
E 9 ROXQWHHU6 FUHHQLQJ 3 ROLF\ F 5 XOH RI 7Z R 3 ROLF\
G : KLVWOHEORZ HU3 ROLF\ H * HQGHU( TXLW\ 3 ROLF\
I ’ LYHUVLW\ ,QFOXVLYLW\ 3 ROLF\
J 3 OD\ HU) LQDQFLDO$ VVLVWDQFH 3 ROLF\
&RP P LWP HQWWR IROORZ 2 QWDULR 6 RFFHU¶V&RQIOLFWRI ,QWHUHVWDQG &RGH RI &RQGXFW 3 ROLFLHV
0 XVWRSHUDWH D * UDVVURRWVGHYHORSP HQWSURJ UDP
0 XVWRSHUDWH P RUH &OXE UHFUHDWLRQDOWHDP VWKDQ FRP SHWLWLYH WHDP VDWWKH ▇▇ ▇ RI 8 DQG ROGHU
0 XVWQRWUHJ LVWHUWHDP VIURP DQ\ RWKHU( 2 6 0 HP EHU&OXE LQWR LWVRZ Q &OXE OHDJ XHV
Z LWKRXWSHUP LVVLRQ IURP WKH ( 2 6
6 KDUH DGGUHVVHVRI DOOSOD\ HUVZ LWK WKH ( 2 6
L 6L H
&Q LO
RX UE
$ GKHUH WR DOO6 HQLRU&OXE P HP EHUVKLS UHTXLUHP HQWVRI 2 QWDULR 6 RFFHU DVZ ULWWHQ LQ 2 QWDULR 6 RFFHU¶V* RYHUQLQJ ’ RFXP HQWV
: LOOQRWHQJ ▇▇ ▇ LQWHUDFWRUVKHOWHUQRQ VDQFWLRQHG UHFRJ QL] HG HQWLWLHV XQGHUWKHLU FOXE XP EUHOOD RQ D SD\ P HQWIRUDFFHVVLELOLW\ DUUDQJ HP HQWDVLWGRHVQRWDOLJ Q Z LWK WKH QDWXUDOHYROXWLRQ RI FOXEV DQG IUHH DQG IDLUP RYHP HQWRI LQGLYLGXDOVZ LWKLQ WKH ( 2 6 ¶V HFRV\ VWHP
&OXEVP XVWVXEP LWFXUUHQWOLVWRI &OXE %RDUG RI ’ LUHFWRUVWR WKH ( 2 6
,I WKH &OXE KDVDQ\ SOD\ HUVXQGHUWKH ▇▇ ▇ RI WKH &OXE P XVWVXEP LWD 9 ROXQWHHU 6 FUHHQLQJ 5 HSRUWDQQXDOO\ XVLQJ D P HWKRG SUHVFULEHG E\ WKH ( 2 6
3 D\ DOOLQYRLFHVIURP WKH ( 2 6 Z LWKLQ VL[ W\ GD\ V
+ DYH WKH IROORZ LQJ 3 ROLFLHV
D &KLOG 3 URWHFWLRQ 3 ROLF\ LI DQ\ SOD\ HUVXQGHU LQ &OXE
E 9 ROXQWHHU6 FUHHQLQJ 3 ROLF\ LI DQ\ SOD\ HUVXQGHU LQ &OXE F 5 XOH RI 7Z R 3 ROLF\ LI DQ\ SOD\ HUVXQGHU LQ &OXE
G : KLVWOHEORZ HU3 ROLF\
H 3 OD\ HU) LQDQFLDO$ VVLVWDQFH 3 ROLF\
&RP P LWP HQWWR IROORZ 2 QWDULR 6 RFFHU¶V&RQIOLFWRI ,QWHUHVWDQG &RGH RI &RQGXFW 3 ROLFLHV
0 XVWRSHUDWH D P LQLP XP RI IRXU WHDP VRUUHJ LVWHUD P LQLP XP RI WKLUW\ SOD\ HUV
6 HQLRU&OXEVJ UDQGIDWKHUHG LQ WKH \ HDU DUH H[ HP SWIURP WKLVUHTXLUHP HQW
0 XVWQRWUHJ LVWHUWHDP VIURP DQ\ RWKHU( 2 6 0 HP EHU&OXE LQWR LWVRZ Q &OXE OHDJ XHV
Z LWKRXWSHUP LVVLRQ IURP WKH ( 2 6
E $ V V R0 HF LP DE HW UH
L & R P P$
XV QV
LR WF L\
D W L R Q
$ GKHUH WR DOO$ VVRFLDWH P HP EHUVKLS UHTXLUHP HQWVRI 2 QWDULR 6 RFFHU DVZ ULWWHQ LQ 2 QWDULR 6 RFFHU¶V* RYHUQLQJ ’ RFXP HQWV
0 XVWKDYH SURJ UDP VWKDWWDUJ HWXQGHUUHSUHVHQWHG J URXSVDQG UHGXFH EDUULHUVWR SDUWLFLSDWLRQ DVRXWOLQHG LQ &DQDGD 6 RFFHU¶V* XLGH WR $ FFHVVLELOLW\ DQG ,QFOXVLRQ
<RXWK &OXEVP XVWVXEP LWD 9 ROXQWHHU6 FUHHQLQJ 5 HSRUWDQQXDOO\ DVSDUWRI WKH 0 HP EHUVKLS UHQHZ DOSURFHVVXVLQJ D P HWKRG SUHVFULEHG E\ WKH ( 2 6
3 D\ DOOLQYRLFHVIURP WKH ( 2 6 Z LWKLQ VL[ W\ GD\ V
+ DYH WKH IROORZ LQJ 3 ROLFLHV
D &KLOG 3 URWHFWLRQ 3 ROLF\ LI DQ\ SOD\ HUVXQGHU LQ &OXE
E 9 ROXQWHHU6 FUHHQLQJ 3 ROLF\ LI DQ\ SOD\ HUVXQGHU LQ &OXE F 5 XOH RI 7Z R 3 ROLF\ LI DQ\ SOD\ HUVXQGHU LQ &OXE
G : KLVWOHEORZ HU3 ROLF\
H 3 OD\ HU) LQDQFLDO$ VVLVWDQFH 3 ROLF\
L $L
V V /R HF DL
JD XWH H
$ GKHUH WR DOO/ HDJ XH P HP EHUVKLS UHTXLUHP HQWVRI 2 QWDULR 6 RFFHU DVZ ULWWHQ LQ 2 QWDULR 6 RFFHU¶V* RYHUQLQJ ’ RFXP HQWV
3 D\ DOOLQYRLFHVIURP WKH ( 2 6 Z LWKLQ VL[ W\ GD\ V
+ DYH WKH IROORZ LQJ 3 ROLFLHV
D : KLVWOHEORZ HU3 ROLF\
E &RP P LWP HQWWR IROORZ 2 QWDULR 6 RFFHU¶V&RQIOLFWRI ,QWHUHVWDQG &RGH RI &RQGXFW3 ROLFLHV
L L6
LX S S$
RV UV
W0R
HLF
PQL
EDJ
HW UH
0 XVWVXEP LWD 9 ROXQWHHU6 FUHHQLQJ 5 HSRUWLI DSSOLFDEOH XVLQJ D P HWKRG SUHVFULEHG E\ WKH ( 2 6
3 D\ DOOLQYRLFHVIURP WKH ( 2 6 Z LWKLQ VL[ W\ GD\ V
+ DYH WKH IROORZ LQJ 3 ROLFLHV Z KHUH DSSOLFDEOH D &KLOG 3 URWHFWLRQ 3 ▇▇▇▇\
E 9 ROXQWHHU6 FUHHQLQJ 3 ROLF\ F 5 XOH RI 7Z R 3 ROLF\
G : KLVWOHEORZ HU3 ROLF\ H * HQGHU( TXLW\ 3 ROLF\
I ’ LYHUVLW\ ,QFOXVLYLW\ 3 ROLF\
&RP P LWP HQWWR DELGH E\ 2 QWDULR 6 RFFHU¶V&RGH RI &RQGXFW3 ROLFLHV
1 ( : 0 ( 0 %( 5 5 ( 4 8 ,5 ( 0 ( 1 7 6
D $ F W0 HL PY ▇▇ ▇ ▇
L ) X O O& O 6X HE U Y L F H
0 XVWDELGH E\ DOO5 HTXLUHP HQWVDQG 2 EOLJ DWLRQVRI $ FWLYH ) XOO6 HUYLFH &OXEVOLVWHG DERYH Z LWK WKH H[ FHSWLRQ RI &DQDGD 6 RFFHU/ LFHQVLQJ Z KLFK P XVWEH REWDLQHG Z LWKLQ WKH ILUVW\ HDURI P HP EHUVKLS
0 D\ QRWRIIHUFRP SHWLWLYH SURJ UDP VLQ WKH ILUVW\ HDURI P HP EHUVKLS
0 XVWVXEP LW&OXE¶VJ RYHUQDQFH DQG RUJ DQL] DWLRQDOVWUXFWXUH WR WKH ( 2 6
) LUVW\ HDURI P HP EHUVKLS LVD SUREDWLRQDU\ SHULRG Z LWK D UHYLHZ IROORZ LQJ \ HDURQH WR HQVXUH WKDWWKH &OXE FRQWLQXHVWR P HHWDOOUHTXLUHP HQWV
’ HWDLOSURVSHFWLYH SOD\ HUVLQ WKH &OXE LQFOXGLQJ WKHLUUHJ LVWUDWLRQ KLVWRU\ Z LWKLQ WKH
( 2 6 LI DSSOLFDEOH Z LWK WKH J RDORI HQVXULQJ WKDWQHZ &OXEVDUH SULP DULO\ EULQJ LQJ QHZ SOD\ HUVWR VDQFWLRQHG VRFFHU
&OXE VXVWDLQDELOLW\ GHP RQVWUDWHG WKURXJ K J RYHUQDQFH DQG LQFRUSRUDWLRQ VWUXFWXUH WHFKQLFDORSHUDWLRQDODQG ILQDQFLDOSODQV
’ HP RQVWUDWHG DFFHVVWR ILHOGVDQG IDFLOLWLHV
0 XVWVXEP LWP HP EHUVKLS DSSOLFDWLRQ LQ WKH P DQQHUSUHVFULEHG E\ WKH ( 2 6
L 6L H
&Q LO
RX UE
0 XVWDELGH E\ DOO5 HTXLUHP HQWVDQG 2 EOLJ DWLRQVRI $ FWLYH 6 HQLRU&OXEVOLVWHG DERYH
6 XEP LW&OXE¶VJ RYHUQDQFH DQG RUJ DQL] DWLRQDOVWUXFWXUH WR WKH ( 2 6
) LUVW\ HDURI P HP EHUVKLS LVD SUREDWLRQDU\ SHULRG Z LWK D UHYLHZ IROORZ LQJ \ HDURQH WR HQVXUH WKDWWKH &OXE FRQWLQXHVWR P HHWDOOUHTXLUHP HQWV
3 URYLGH UHJ LVWUDWLRQ KLVWRU\ LQFOXGLQJ DJ HVDQG J HQGHUVRI SOD\ HUV IRUWKH SDVWWZ R
\ HDUV LI DSSOLFDEOH
&OXE VXVWDLQDELOLW\ GHP RQVWUDWHG WKURXJ K J RYHUQDQFH DQG LQFRUSRUDWLRQ VWUXFWXUH WHFKQLFDORSHUDWLRQDODQG ILQDQFLDOSODQV
0 XVWVXEP LWP HP EHUVKLS DSSOLFDWLRQ LQ WKH P DQQHUSUHVFULEHG E\ WKH ( 2 6
E $ VVRFLDWH 0 HP EHU
L & R P P$
XV QV
LR WF L\
D W L R Q
0 XVWDELGH E\ DOO5 HTXLUHP HQWVDQG 2 EOLJ DWLRQVRI $ VVRFLDWH &RP P XQLW\ 0 HP EHUV OLVWHG DERYH
0 XVWVXEP LW&OXE¶VJ RYHUQDQFH DQG RUJ DQL] DWLRQDOVWUXFWXUH WR WKH ( 2 6
) LUVW\ HDURI P HP EHUVKLS LVD SUREDWLRQDU\ SHULRG Z LWK D UHYLHZ IROORZ LQJ \ HDURQH WR HQVXUH WKDWWKH &OXE FRQWLQXHVWR P HHWDOOUHTXLUHP HQWV
0 XVWVXEP LW$ VVRFLDWH 0 HP EHUVKLS DSSOLFDWLRQ LQ WKH P DQQHUSUHVFULEHG E\ WKH ( 2 6
L $L V V
/R HF DL
JD XWH H
0 XVWDELGH E\ DOO5 HTXLUHP HQWVDQG 2 EOLJ DWLRQVRI $ VVRFLDWH / HDJ XH 0 HP EHUVOLVWHG DERYH
0 XVWVXEP LW/ HDJ XH¶VJ RYHUQDQFH DQG RUJ DQL] DWLRQDOVWUXFWXUH WR WKH ( 2 6
) LUVW\ HDURI P HP EHUVKLS LVD SUREDWLRQDU\ SHULRG Z LWK D UHYLHZ IROORZ LQJ \ HDURQH WR HQVXUH WKDWWKH / HDJ XH FRQWLQXHVWR P HHWDOOUHTXLUHP HQWV
/ HDJ XH VXVWDLQDELOLW\ GHP RQVWUDWHG WKURXJ K J RYHUQDQFH DQG LQFRUSRUDWLRQ VWUXFWXUH RSHUDWLRQDODQG ILQDQFLDOSODQV
’ HP RQVWUDWHG DFFHVVWR ILHOGVDQG IDFLOLWLHV
0 XVWVXEP LWP HP EHUVKLS DSSOLFDWLRQ LQ WKH P DQQHUSUHVFULEHG E\ WKH ( 2 6
L L6
LX S S$
RV UV
W0R
HLF
PQL
EDJ
HW UH
0 XVWDELGH E\ DOO5 HTXLUHP HQWVDQG 2 EOLJ DWLRQVRI 6 XSSRUWLQJ $ VVRFLDWH 0 HP EHUV OLVWHG DERYH
0 XVWVXEP LW2 UJ DQL] DWLRQ¶VJ RYHUQDQFH DQG RUJ DQL] DWLRQDOVWUXFWXUH WR WKH ( 2 6
) LUVW\ HDURI P HP EHUVKLS LVD SUREDWLRQDU\ SHULRG Z LWK D UHYLHZ IROORZ LQJ \ HDURQH WR HQVXUH WKDWWKH &OXE FRQWLQXHVWR P HHWDOOUHTXLUHP HQWV
0 XVWVXEP LWP HP EHUVKLS DSSOLFDWLRQ LQ WKH P DQQHUSUHVFULEHG E\ WKH ( 2 6
1 ( : 0 ( 0 %( 5 $ 6 6 ( 6 6 0 ( 1 7
D $ FWLYH 0 HP EHU
L ) X6
OH OU&
YO LX
FE H
$ SSURYDORI WKH ( 2 6 %RDUG RI ’ LUHFWRUVLVVXEMHFWWR DQG Z LOOFRP SO\ Z LWK WKH ‡1 HZ ) XOO6 HUYLFH $ FWLYH 0 HP EHU&RQVLGHUDWLRQ 3 URFHGXUH· DVDP HQGHG IURP WLP H WR WLP H
L 6L H
&Q LO
RX UE
$ SSURYDORI WKH ( 2 6 %RDUG RI ’ LUHFWRUVLVVXEMHFWWR DQG Z LOOFRP SO\ Z LWK WKH ‡1 HZ 6 HQLRU$ FWLYH 0 HP EHU &RQVLGHUDWLRQ 3 URFHGXUH· DVDP HQGHG IURP WLP H WR WLP H
E $ V V RP HF LP DE HW UH
L & R P P$
XV QV
LR WF L\
D W L R Q
$ SSURYDORI WKH ( 2 6 %RDUG RI ’ LUHFWRUVLVVXEMHFWWR DQG Z LOOFRP SO\ Z LWK WKH ‡1 HZ &RP P XQLW\
$ VVRFLDWLRQ 0 HP EHU&RQVLGHUDWLRQ 3 URFHGXUH· DVDP HQGHG IURP WLP H WR WLP H
L $L V V
/R HF DL
JD XWH H
$ SSURYDORI WKH ( 2 ’ 6 $ %RDUG RI ’ LUHFWRUVLVVXEMHFWWR DQG Z LOOFRP SO\ Z LWK WKH ‡1 HZ $ VVRFLDWH / HDJ XH 0 HP EHU&RQVLGHUDWLRQ 3 URFHGXUH· DVDP HQGHG IURP WLP H WR WLP H
L 6L XL
S S$
RV UV
W0R
HLF
PQL
EDJ
HW UH
$ SSURYDORI WKH ( 2 6 %RDUG RI ’ LUHFWRUVLVVXEMHFWWR DQG Z LOOFRP SO\ Z LWK WKH ‡1 HZ 6 XSSRUWLQJ $ VVRFLDWH 0 HP EHU&RQVLGHUDWLRQ 3 URFHGXUH· DVDP HQGHG IURP WLP H WR WLP H
