Prospectus - Shriram Insight

35263(&786
'DWHG0DUFK
6+5,5$0&,7<81,21),1$1&(/,0,7('
2XU&RPSDQ\ ZDVLQFRUSRUDWHGDV6KULUDP+LUH3XUFKDVH)LQDQFH3ULYDWH /LPLWHGRQ0DUFKDVDSULYDWHOLPLWHGFRPSDQ\XQGHUWKH&RPSDQLHV$FW
DVDPHQGHGWKH³&RPSDQLHV$FW´DQGZDVJUDQWHGDFHUWLILFDWHRILQFRUSRUDWLRQE\WKH5HJLVWUDURI&RPSDQLHV&KHQQDL7DPLO1DGX:LWKHIIHFW
IURP2FWREHUWKHVWDWXVRIRXU&RPSDQ\ZDVFKDQJHGWRDSXEOLFOLPLWHGFRPSDQ\SXUVXDQWWRZKLFKWKHQDPHRIRXU&RPSDQ\ZDVFKDQJHGWR6KULUDP
+LUH3XUFKDVH )LQDQFH /LPLWHG 7KH QDPH RI RXU &RPSDQ\ ZDV VXEVHTXHQWO\ FKDQJHG WR 6KULUDP &LW\ 8QLRQ )LQDQFH /LPLWHG DQG D IUHVK FHUWLILFDWH RI
LQFRUSRUDWLRQGDWHG$SULOZDVLVVXHGE\WKH5HJLVWUDURI&RPSDQLHV&KHQQDL7DPLO1DGX)RUIXUWKHUGHWDLOVSOHDVHVHHWKHVHFWLRQWLWOHG³+LVWRU\DQG
&HUWDLQ&RUSRUDWH0DWWHUV´RQSDJH
5HJLVWHUHG2IILFH$QJDSSD1DLFNHQ6WUHHW&KHQQDL7DPLO1DGX,QGLD
&RUSRUDWH2IILFH6DQWKRPH+LJK5RDG0\ODSRUH&KHQQDL7DPLO1DGX,QGLD
7HOHSKRQH)DFVLPLOH
&RPSOLDQFH2IILFHU0U&5'DVK7HOHSKRQH)DFVLPLOH
(PDLOVFXIQFG#VKULUDPFLW\LQ :HEVLWHZZZVKULUDPFLW\LQ
38%/,& ,668( %< 6+5,5$0 &,7< 81,21 ),1$1&( /,0,7(' ³&203$1<´ 25 7+( ³,668(5´ 2) 6(&85(' 5('((0$%/( 121
&219(57,%/( '(%(1785(6 2) )$&( 9$/8( 2) ` ($&+ ³1&'´ $**5(*$7,1* 8372 ` /$.+6 :,7+ $1 237,21 72
5(7$,1 29(568%6&5,37,21 83 72 ` /$.+6 )25 ,668$1&( 2) $'',7,21$/ 1&'V $**5(*$7,1* 72 $ 727$/ 2) 83 72 `
/$.+6+(5(,1$)7(55()(55('72$67+(³,668(´
7KH ,VVXH LV EHLQJ PDGH XQGHU WKH 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD ,VVXH DQG /LVWLQJ RI 'HEW 6HFXULWLHV 5HJXODWLRQV DV DPHQGHG ³6(%, 'HEW
5HJXODWLRQV´
*(1(5$/5,6.6
,QYHVWRUVDUHDGYLVHGWRUHDGWKH5LVN)DFWRUVFDUHIXOO\EHIRUHWDNLQJDQLQYHVWPHQWGHFLVLRQLQUHODWLRQWRWKLV,VVXH)RUWDNLQJDQLQYHVWPHQWGHFLVLRQLQYHVWRUVPXVWUHO\
RQWKHLURZQH[DPLQDWLRQRIWKH,VVXHUDQGWKH,VVXHLQFOXGLQJWKHULVNVLQYROYHG6SHFLILFDWWHQWLRQRIWKHLQYHVWRUVLVLQYLWHGWRWKHVHFWLRQWLWOHG³5LVN)DFWRUV´RQSDJH
7KLVGRFXPHQWKDVQRWEHHQDQGZLOOQRWEHDSSURYHGE\DQ\UHJXODWRU\DXWKRULW\LQ,QGLDLQFOXGLQJWKH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD³6(%,´WKH5HVHUYH
%DQNRI,QGLD³5%,´DQ\UHJLVWUDURIFRPSDQLHVRUDQ\VWRFNH[FKDQJHLQ,QGLD
,668(5¶6$%62/87(5(63216,%,/,7<
7KH,VVXHUKDYLQJPDGHDOOUHDVRQDEOHLQTXLULHVDFFHSWVUHVSRQVLELOLW\IRUDQGFRQILUPVWKDWWKLV3URVSHFWXVFRQWDLQVDOOLQIRUPDWLRQZLWKUHJDUGWRWKH,VVXHUDQGWKH
,VVXHZKLFKLVPDWHULDOLQWKHFRQWH[WRIWKH,VVXHWKDWWKHLQIRUPDWLRQFRQWDLQHGLQWKLV3URVSHFWXVLVWUXHDQGFRUUHFWLQDOOPDWHULDOUHVSHFWVDQGLVQRWPLVOHDGLQJLQ
DQ\PDWHULDOUHVSHFWWKDWWKHRSLQLRQVDQGLQWHQWLRQVH[SUHVVHGKHUHLQDUHKRQHVWO\KHOGDQGWKDWWKHUHDUHQRRWKHUIDFWVWKHRPLVVLRQRIZKLFKPDNHVWKLV3URVSHFWXV
DVDZKROHRUDQ\RIVXFKLQIRUPDWLRQRUWKHH[SUHVVLRQRIDQ\VXFKRSLQLRQVRULQWHQWLRQVPLVOHDGLQJLQDQ\PDWHULDOUHVSHFW
&5(',75$7,1*
7KH1&'VSURSRVHGWREHLVVXHGXQGHUWKH,VVXHKDYHEHHQUDWHGµ&$5($$¶E\&$5(IRUDQDPRXQWRIXSWR`ODNKVYLGHLWVOHWWHUGDWHG0DUFK7KH
UDWLQJRIWKH1&'VE\&$5(LQGLFDWHVDKLJKGHJUHHRIVDIHW\UHJDUGLQJWLPHO\VHUYLFLQJRIILQDQFLDOREOLJDWLRQV 6XFKLQVWUXPHQWVFDUU\YHU\ORZFUHGLWULVN7KH
UDWLQJVSURYLGHGE\&$5(PD\EHVXVSHQGHGZLWKGUDZQRUUHYLVHGDWDQ\WLPHE\WKHDVVLJQLQJUDWLQJDJHQF\DQGVKRXOGEHHYDOXDWHGLQGHSHQGHQWO\RIDQ\RWKHU
UDWLQJ7KHVHUDWLQJVDUHQRWDUHFRPPHQGDWLRQWREX\VHOORUKROGWKH1&'VDQGLQYHVWRUVVKRXOGWDNHWKHLURZQGHFLVLRQV)RUIXUWKHUGHWDLOVSOHDVHUHIHUWRSDJH
IRUWKHUDWLQJOHWWHUVDQGWKHUDWLRQDOHIRUWKHDERYHUDWLQJV
38%/,&&200(176
7KH'UDIW3URVSHFWXVGDWHG0DUFKKDVEHHQILOHGZLWKWKH%6(/LPLWHG³%6(´WKH'HVLJQDWHG6WRFN([FKDQJHSXUVXDQWWRWKHSURYLVLRQVRIWKH6(%,'HEW
5HJXODWLRQVRQ0DUFKDQGZDVRSHQIRUSXEOLFFRPPHQWVIRUVHYHQ:RUNLQJ'D\VRIKRVWLQJWKH'UDIW3URVSHFWXVRQWKHZHEVLWHRIWKH'HVLJQDWHG6WRFN
([FKDQJHLHE\SPRQ0DUFK
/,67,1*
7KH1&'VRIIHUHGWKURXJKWKLV3URVSHFWXVDUHSURSRVHGWREHOLVWHGRQWKH%6(2XU&RPSDQ\KDVREWDLQHGµLQSULQFLSOH¶DSSURYDOIRUWKH,VVXHIURPWKH%6(YLGHLWV
OHWWHUGDWHG0DUFK)RUWKHSXUSRVHVRIWKH,VVXH%6(VKDOOEHWKH'HVLJQDWHG6WRFN([FKDQJH
'(%(1785(75867((
/($'0$1$*(56727+(,668(
5(*,675$5727+(,668(
,&,&,6(&85,7,(6/,0,7('
+73DUHNK0DUJ&KXUFKJDWH
0XPEDL,QGLD
7HOHSKRQH
)DFVLPLOH
(PDLOVFXIQFG#LFLFLVHFXULWLHVFRP
,QYHVWRU
*ULHYDQFH
(PDLO
FXVWRPHUFDUH#LFLFLVHFXULWLHVFRP
:HEVLWHZZZLFLFLVHFXULWLHVFRP
&RQWDFW 3HUVRQ 0U 0DQYHQGUD 7LZDUL 0V3D\DO.XONDUQL
&RPSOLDQFH2IILFHU0U6XELU6DKD
6(%,5HJLVWUDWLRQ1R,10
$.&$3,7$/6(59,&(6/,0,7('
)UHH3UHVV+RXVHUG)ORRU)UHH
3UHVV-RXUQDO0DUJ
1DULPDQ3RLQW0XPEDL
7HOHSKRQH
)DFVLPLOH
(PDLOVFXIQFG#DNJURXSFRLQ
,QYHVWRU*ULHYDQFH(PDLO
LQYHVWRUJULHYDQFH#DNJURXSFRLQ
:HEVLWHZZZDNFDSLQGLDFRP
&RQWDFWSHUVRQ0V$NVKDWD7DPEH0U
6LGGKDUWK6KDK
&RPSOLDQFH2IILFHU0U9LNDV$JDUZDO
6(%,5HJLVWUDWLRQ1R,10
6+5,5$0
,16,*+7
6+$5(
%52.(56/,0,7('
&.±6HFWRU,,6DOW/DNH&LW\
.RONDWD,QGLD
7HOHSKRQH
)DFVLPLOH
(PDLOVFXIBPDU#VKULUDPLQVLJKWFRP
:HEVLWHZZZVKULUDPLQVLJKWFRP
&RQWDFW 3HUVRQ 0V6QHKD -DLVZDO
&RPSOLDQFH 2IILFHU0U .DO\DQ 6
&KDNUDERUW\
6(%,5HJLVWUDWLRQ1R,15
*'$75867((6+,3/,0,7('
*'$+RXVH)LUVW)ORRU3ORW1R61R
%KXVDUL&RORQ\5LJKW.RWKUXG
3XQH,QGLD
7HOHSKRQH
)DFVLPLOH
(PDLOGW#JGDWUXVWHHFRP
,QYHVWRU*ULHYDQFH(PDLO
GW#JGDWUXVWHHFRP
:HEVLWHZZZJGDWUXVWHHFRP
&RQWDFW3HUVRQ0V1HHODP0XQGDGD
6(%,5HJLVWUDWLRQ1R,1' ,668(352*5$00(
,668(23(1621$SULO
,668(&/26(6210D\
7KH,VVXHVKDOOUHPDLQRSHQIRUVXEVFULSWLRQIURPDPWLOO30,QGLDQ6WDQGDUG7LPHIRUWKHSHULRGPHQWLRQHGDERYHZLWKDQRSWLRQIRUHDUO\FORVXUHRUH[WHQVLRQE\VXFKSHULRGDVPD\EH
GHFLGHGE\WKH%RDUGRI'LUHFWRUVRUDGXO\FRQVWLWXWHGFRPPLWWHHWKHUHRI,QWKHHYHQWRIVXFKHDUO\FORVXUHRUH[WHQVLRQRIWKHVXEVFULSWLRQOLVWRIWKH,VVXHRXU&RPSDQ\VKDOOHQVXUHWKDWSXEOLFQRWLFHRI
VXFKHDUO\FORVXUHRUH[WHQVLRQLVSXEOLVKHGRQRUEHIRUHWKHGD\RIVXFKHDUO\GDWHRIFORVXUHRU,VVXH&ORVLQJ'DWHWKURXJKDGYHUWLVHPHQWVLQDWOHDVWRQHOHDGLQJQDWLRQDOGDLO\QHZVSDSHU
$FRS\RIWKLV3URVSHFWXVVKDOOEHILOHGZLWKWKH5HJLVWUDURI&RPSDQLHV&KHQQDL7DPLO1DGXLQWHUPVRIWKHDSSOLFDEOHSURYLVLRQVRIWKH&RPSDQLHV$FWDQGWKH&RPSDQLHV$FWDORQJZLWK
WKHUHTXLVLWHHQGRUVHGFHUWLILHGFRSLHVRIDOOUHTXLVLWHGRFXPHQWV)RUPRUHLQIRUPDWLRQVHHWKHVHFWLRQWLWOHG³0DWHULDO&RQWUDFWVDQG'RFXPHQWVIRU,QVSHFWLRQ´RQSDJH
7$%/(2)&217(176
'(),1,7,216$1'$%%5(9,$7,216
&(57$,1&219(17,21686(2)),1$1&,$/,1'8675<$1'0$5.(7'$7$$1'&855(1&<
2)35(6(17$721
)25:$5'/22.,1*67$7(0(176
5,6.)$&7256
7+(,668(
6800$5<),1$1&,$/,1)250$7,21
6800$5<2)%86,1(66
*(1(5$/,1)250$7,21
&$3,7$/6758&785(
67$7(0(172)7$;%(1(),76
,1'8675<29(59,(:
285%86,1(66
5(*8/$7,216$1'32/,&,(6
+,6725<$1'&(57$,1&25325$7(0$77(56
2850$1$*(0(17
285352027(5
672&.0$5.(7'$7$)252856(&85,7,(6
),1$1&,$/,1'(%7('1(66
28767$1',1*/,7,*$7,21$1'0$7(5,$/'(9(/230(176
27+(55(*8/$725<$1'67$78725<',6&/2685(6
,668(6758&785(
7(506$1'&21',7,216,1&211(&7,21:,7+7+(1&'6
7(5062)7+(,668(
,668(352&('85(
0$,13529,6,2162)$57,&/(62)$662&,$7,212)7+(&203$1<
0$7(5,$/&2175$&76$1''2&80(176)25,163(&7,21
'(&/$5$7,21
$11(;85($),1$1&,$/67$7(0(176
$11(;85(%&5(',75$7,1*$1'5$7,21$/(
$11(;85(&&216(17/(7(5)5207+('(%(1785(75867((
'(),1,7,216$1'$%%5(9,$7,216
8QOHVVWKHFRQWH[WRWKHUZLVHLQGLFDWHVDOOUHIHUHQFHVLQWKLV3URVSHFWXVWR³RXU&RPSDQ\´RU³ZH´RU³XV´RU
³RXU´RU³6&8)/´DUHWR6KULUDP&LW\8QLRQ)LQDQFH/LPLWHGDSXEOLFOLPLWHGFRPSDQ\LQFRUSRUDWHGXQGHU
WKH&RPSDQLHV$FW
8QOHVVWKHFRQWH[WRWKHUZLVHLQGLFDWHVRULPSOLHVRUGHILQHGVSHFLILFDOO\LQWKLV3URVSHFWXVWKHIROORZLQJWHUPV
KDYH WKH IROORZLQJ PHDQLQJV LQ WKLV 3URVSHFWXV DQG UHIHUHQFHV WR DQ\ VWDWXWH RU UXOHV RU UHJXODWLRQV RU
JXLGHOLQHVRUSROLFLHVLQFOXGHVDQ\DPHQGPHQWVRUUHHQDFWPHQWVWKHUHWRIURPWLPHWRWLPH
&RPSDQ\5HODWHG7HUPV
7HUP
³,VVXHU´³6&8)/´³RXU&RPSDQ\´
RU³WKH&RPSDQ\´
$UWLFOHV$UWLFOHVRI$VVRFLDWLRQ$R$
%RDUG%RDUGRI'LUHFWRUV
'LUHFWRUV
(TXLW\6KDUHV
0HPRUDQGXP0HPRUDQGXPRI
$VVRFLDWLRQ0R$
3URPRWHU
³5HJLVWHUHG2IILFH´RU³&RUSRUDWH
2IILFH´
5R&
³6&/´RU³6KULUDP&DSLWDO´
6(+3/
³6+)/´RU³6KULUDP+RXVLQJ´RU
³6XEVLGLDU\´
627
65+3/
6WDWXWRU\$XGLWRUV$XGLWRUV
'HVFULSWLRQ
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHGDSXEOLFOLPLWHGFRPSDQ\LQFRUSRUDWHGXQGHU
WKH&RPSDQLHV$FWDQGKDYLQJLWVUHJLVWHUHGRIILFHVLWXDWHGDW$QJDSSD
1DLFNHQ6WUHHW&KHQQDL7DPLO1DGX,QGLDDQGFRUSRUDWHRIILFHVLWXDWHG
DW6DQWKRPH+LJK5RDG0\ODSRUH&KHQQDL7DPLO1DGX,QGLD
$UWLFOHVRIDVVRFLDWLRQRIRXU&RPSDQ\
%RDUGRIGLUHFWRUVRIRXU&RPSDQ\
'LUHFWRUVRQRXU%RDUG
(TXLW\VKDUHVRIRXU&RPSDQ\RIIDFHYDOXHRI`HDFK
0HPRUDQGXPRIDVVRFLDWLRQRIRXU&RPSDQ\
6KULUDP&DSLWDO/LPLWHG
7KHUHJLVWHUHGRIILFHVLWXDWHGDW$QJDSSD1DLFNHQ6WUHHW&KHQQDL
7DPLO 1DGX ,QGLD DQG FRUSRUDWH RIILFH VLWXDWHG DW 6DQWKRPH +LJK 5RDG
0\ODSRUH&KHQQDL7DPLO1DGX,QGLD
5HJLVWUDURI&RPSDQLHV&KHQQDL7DPLO1DGX
6KULUDP&DSLWDO/LPLWHG
6KULUDP(QWHUSULVH+ROGLQJV3ULYDWH/LPLWHG
7KHVXEVLGLDU\RIRXU&RPSDQ\QDPHO\6KULUDP+RXVLQJ)LQDQFH/LPLWHG
6KULUDP2ZQHUVKLS7UXVW
6KULUDP5HWDLO+ROGLQJV3ULYDWH/LPLWHG
7KHVWDWXWRU\DXGLWRUVRIRXU&RPSDQ\EHLQJ0V3LMXVK*XSWD&R&KDUWHUHG
$FFRXQWDQWV
,VVXH5HODWHG7HUPV
7HUP
$.&DSLWDO
$OORWPHQW$OORW$OORWWHG
$OORWPHQW$GYLFH
'HVFULSWLRQ
$.&DSLWDO6HUYLFHV/LPLWHG
7KHDOORWPHQWRIWKH1&'VWRWKH$OORWWHHVSXUVXDQWWRWKH,VVXH
7KHFRPPXQLFDWLRQVHQWWRWKH$OORWWHHVFRQYH\LQJGHWDLOVRI1&'VDOORWWHGWRWKH
$OORWWHHVLQDFFRUGDQFHZLWKWKH%DVLVRI$OORWPHQW
$OORWWHH
$VXFFHVVIXO$SSOLFDQWWRZKRPWKH1&'VDUHDOORWWHGSXUVXDQWWRWKH,VVXH
$SSOLFDQW,QYHVWRU
$ SHUVRQ ZKR DSSOLHV IRU LVVXDQFH RI 1&'V SXUVXDQW WR WKH WHUPV RI WKLV
3URVSHFWXVDQG$SSOLFDWLRQ)RUP
$SSOLFDWLRQ
$QDSSOLFDWLRQWRVXEVFULEHWR1&'VRIIHUHGSXUVXDQWWRWKH,VVXHE\VXEPLVVLRQRI
D YDOLG $SSOLFDWLRQ )RUP DQG SD\PHQW RI WKH $SSOLFDWLRQ $PRXQW E\ DQ\ RI WKH
PRGHVDVSUHVFULEHGXQGHUWKLV3URVSHFWXV
$SSOLFDWLRQ$PRXQW
7KH DJJUHJDWH YDOXH RI WKH 1&'V DSSOLHG IRU DV LQGLFDWHG LQ WKH
$SSOLFDWLRQ)RUP
$SSOLFDWLRQ)RUP
7KHIRUPXVHGE\DQ$SSOLFDQWIRUDSSO\LQJIRUWKH1&'VXQGHUWKH,VVXHWKURXJK
WKH$6%$RUQRQ$6%$SURFHVVLQWHUPVRIWKLV3URVSHFWXV
³$6%$´ RU ³$SSOLFDWLRQ 6XSSRUWHG $Q $SSOLFDWLRQ ZKHWKHU SK\VLFDO RU HOHFWURQLF XVHG E\ DQ $6%$ $SSOLFDQW WR
E\ %ORFNHG $PRXQW´ $6%$ PDNHDQ$SSOLFDWLRQE\DXWKRUL]LQJWKH6&6%WREORFNWKH$SSOLFDWLRQ$PRXQWLQ
$SSOLFDWLRQ
WKHVSHFLILHGEDQNDFFRXQWPDLQWDLQHGZLWKVXFK6&6%
$6%$$FFRXQW
$QDFFRXQWPDLQWDLQHGZLWKDQ6&6%ZKLFKZLOOEHEORFNHGE\VXFK6&6%WRWKH
H[WHQWRIWKH$SSOLFDWLRQ$PRXQWRIDQ$6%$$SSOLFDQW
$6%$$SSOLFDQW
$Q\$SSOLFDQWZKRDSSOLHVIRU1&'VWKURXJKWKH$6%$SURFHVV
$SSOLFDWLRQ,QWHUHVW
,QWHUHVW SD\DEOH RQ DSSOLFDWLRQ PRQH\ LQ D PDQQHU DV PRUH SDUWLFXODUO\
GHWDLOHGLQ³7HUPVRIWKH,VVXH±,QWHUHVW´RQSDJH
%DVH,VVXH6L]H
`ODNKV
%DQNHUVWRWKH,VVXH(VFURZ
7KHEDQNVZKLFKDUHFOHDULQJPHPEHUVDQGUHJLVWHUHGZLWK6(%,DVEDQNHUVWRWKH
7HUP
&ROOHFWLRQ%DQNV
%DVLVRI$OORWPHQW
%6(
%XVLQHVV'D\V
&$5(
&DWHJRU\,,QVWLWXWLRQDODQG1RQ
,QVWLWXWLRQDO,QYHVWRUV
&DWHJRU\,,+LJK1HW:RUWK
,QGLYLGXDOV
&DWHJRU\,,,5HWDLO,QGLYLGXDO
,QYHVWRUV
&RQVROLGDWHG1&'&HUWLILFDWH
&UHGLW5DWLQJ$JHQF\
³'HEHQWXUH&HUWLILFDWHV´RU³1&'
&HUWLILFDWHV´
³'HEHQWXUH+ROGHUV´RU³1&'
+ROGHUV´
³'HEHQWXUHV´RU³1&'V´
'HEHQWXUH7UXVW'HHG
'HEHQWXUH7UXVWHH7UXVWHH
'HEW/LVWLQJ$JUHHPHQW
'HHPHG'DWHRI$OORWPHQW
'HPRJUDSKLF'HWDLOV
'HVFULSWLRQ
,VVXHZLWKZKRPWKH(VFURZ$FFRXQWZLOOEHRSHQHGDQGLQWKLVFDVHEHLQJ $[LV
%DQN /LPLWHG ,QGXVLQG %DQN /LPLWHG <HV %DQN /LPLWHG DQG ,1* 9\V\D %DQN
/LPLWHG
7KHEDVLVRQZKLFK1&'VZLOOEHDOORWWHGWRVXFFHVVIXO$SSOLFDQWVXQGHUWKH,VVXH
DQGZKLFKLVGHVFULEHGLQWKHVHFWLRQWLWOHG³,VVXH3URFHGXUH±%DVLVRI$OORWPHQW´
RQSDJH
%6(/LPLWHG
$OOGD\VH[FOXGLQJ6DWXUGD\V6XQGD\VRUDSXEOLFKROLGD\LQ,QGLDRUDW
DQ\ RWKHU SD\PHQW FHQWUH QRWLILHG LQ WHUPV RI WKH 1HJRWLDEOH ,QVWUXPHQWV $FW
&UHGLW$QDO\VLVDQG5HVHDUFK/LPLWHG
5HVLGHQWSXEOLFILQDQFLDOLQVWLWXWLRQVFRPPHUFLDOEDQNVDQGUHJLRQDOUXUDOEDQNV
LQFRUSRUDWHGLQ,QGLDDQGDXWKRUL]HGWRLQYHVWLQWKH1&'V
,QGLDQ SURYLGHQW IXQGV SHQVLRQ IXQGV VXSHUDQQXDWLRQ IXQGV DQG JUDWXLW\ IXQGV
DXWKRUL]HGWRLQYHVWLQWKH1&'V
6WDWHLQGXVWULDOGHYHORSPHQWFRUSRUDWLRQV
,QGLDQYHQWXUHFDSLWDOIXQGVUHJLVWHUHGZLWK6(%,
,QGLDQLQVXUDQFHFRPSDQLHVUHJLVWHUHGZLWKWKH,5'$
1DWLRQDO,QYHVWPHQW)XQG
,QGLDQPXWXDOIXQGVUHJLVWHUHGZLWK6(%,
$OWHUQDWLYH,QYHVWPHQW)XQGVUHJLVWHUHGZLWK6(%,DQG
,QVXUDQFHIXQGVVHWXSE\DQGPDQDJHGE\WKHDUP\QDY\RUDLUIRUFHRIWKH8QLRQ
RI,QGLDRUE\WKH'HSDUWPHQWRI3RVWV*R,
&RPSDQLHVERGLHVFRUSRUDWHDQGVRFLHWLHVUHJLVWHUHGXQGHUWKHDSSOLFDEOHODZVLQ
,QGLDDQGDXWKRUL]HGWRLQYHVWLQWKH1&'V
7UXVWV VHWWOHG XQGHU WKH ,QGLDQ 7UXVWV $FW DQG RWKHU SXEOLFSULYDWH
FKDULWDEOHUHOLJLRXVWUXVWVVHWWOHGDQGRUUHJLVWHUHGLQ,QGLDXQGHUDSSOLFDEOHODZV
ZKLFKDUHDXWKRUL]HGWRLQYHVWLQWKH1&'V
5HVLGHQW ,QGLDQ VFLHQWLILF DQGRU LQGXVWULDO UHVHDUFK RUJDQL]DWLRQV DXWKRUL]HG WR
LQYHVWLQWKH1&'V
6WDWXWRU\ERGLHVFRUSRUDWLRQV
&RRSHUDWLYHEDQNV
/LPLWHG OLDELOLW\ SDUWQHUVKLSV IRUPHG DQG UHJLVWHUHG XQGHU WKH SURYLVLRQV RI WKH
/LPLWHG/LDELOLW\3DUWQHUVKLS$FW1RRIDXWKRUL]HGWRLQYHVWLQWKH
1&'VDQG
3DUWQHUVKLS ILUPV IRUPHG XQGHU DSSOLFDEOH ODZV LQ ,QGLD LQ WKH QDPH RI WKH
SDUWQHUVDXWKRUL]HGWRLQYHVWLQWKH1&'V
5HVLGHQW,QGLDQLQGLYLGXDOVDQG+LQGX8QGLYLGHG)DPLOLHVDSSO\LQJWKURXJKWKH.DUWD
IRU1&'VDJJUHJDWLQJWRDYDOXHRIPRUHWKDQ`DFURVVDOOVHULHVRI1&'V
5HVLGHQW,QGLDQLQGLYLGXDOVDQG+LQGX8QGLYLGHG)DPLOLHVDSSO\LQJWKURXJKWKH.DUWD
IRU1&'VDJJUHJDWLQJWRDYDOXHQRWPRUHWKDQ`DFURVVDOOVHULHVRI1&'V
7KHFHUWLILFDWHLVVXHGE\WKH,VVXHUWRWKH'HEHQWXUH+ROGHUIRUWKHDJJUHJDWH
DPRXQWRIWKH1&'VWKDWDUHDSSOLHGLQSK\VLFDOIRUPRUUHPDWHULDOL]HGDQGKHOG
E\VXFK'HEHQWXUH+ROGHUIRUHDFKVHULHVRI1&'V
)RUWKHSUHVHQW,VVXHWKH&UHGLW5DWLQJ$JHQF\LV&$5(
&HUWLILFDWH LVVXHG WR WKH 'HEHQWXUH +ROGHUV LQ FDVH WKH $SSOLFDQW KDV RSWHG IRU
SK\VLFDO 1&'V EDVHG RQ UHTXHVW IURP WKH 'HEHQWXUH +ROGHUV SXUVXDQW WR
$OORWPHQW
$Q\SHUVRQKROGLQJWKH 1&'VDQGZKRVHQDPHDSSHDUVRQWKHEHQHILFLDORZQHUV
OLVWSURYLGHGE\WKH'HSRVLWRULHVLQFDVHRI1&'VLQGHPDWHULDOL]HGIRUPRU
ZKRVHQDPHDSSHDUVLQWKH5HJLVWHURI'HEHQWXUH+ROGHUVPDLQWDLQHGE\WKH
,VVXHULQFDVHRI1&'VLQSK\VLFDOIRUP
6HFXUHG UHGHHPDEOH QRQFRQYHUWLEOH GHEHQWXUHV RI RXU &RPSDQ\ RI IDFH YDOXH RI
`HDFKSURSRVHGWREHLVVXHGE\RXU&RPSDQ\LQWHUPVRIWKLV3URVSHFWXV
7UXVW GHHG WR EH HQWHUHG LQWR EHWZHHQ WKH 'HEHQWXUH 7UXVWHH DQG WKH
&RPSDQ\LQDFFRUGDQFHZLWKDSSOLFDEOHODZV
7UXVWHHIRUWKH'HEHQWXUH+ROGHUVLQWKLVFDVHEHLQJ*'$7UXVWHHVKLS/LPLWHG
7KH OLVWLQJ DJUHHPHQW HQWHUHG LQWR EHWZHHQ RXU &RPSDQ\ DQG WKH UHOHYDQW VWRFN
H[FKDQJHVLQFRQQHFWLRQZLWKWKHOLVWLQJRIWKHGHEWVHFXULWLHVRIRXU&RPSDQ\
7KHGDWHDVGHFLGHGE\WKH%RDUGRUDGXO\FRQVWLWXWHGFRPPLWWHHWKHUHRIDQGDV
PHQWLRQHGRQWKH$OORWPHQW$GYLFH
7KHGHPRJUDSKLFGHWDLOVRIDQ$SSOLFDQWVXFKDVKLVDGGUHVVEDQNDFFRXQWGHWDLOV
7HUP
'HVFULSWLRQ
IRUSULQWLQJRQUHIXQGRUGHUVDQGRFFXSDWLRQ
'HVLJQDWHG%UDQFKHV
6XFKEUDQFKHVRIWKH6&6%VZKLFKVKDOOFROOHFWWKH$6%$$SSOLFDWLRQVDQGDOLVW
RIZKLFKLVDYDLODEOHRQ
KWWSZZZVHELJRYLQVHELZHEKRPHOLVW5HFRJQLVHG,QWHUPHGLDULHVRUDW
VXFKRWKHUZHEVLWHDVPD\EHSUHVFULEHGE\6(%,IURPWLPHWRWLPH
'HVLJQDWHG'DWH
7KH GDWH RQ ZKLFK $SSOLFDWLRQ $PRXQWV DUH WUDQVIHUUHG IURP WKH
(VFURZ $FFRXQW WR WKH 3XEOLF ,VVXH $FFRXQW RU WKH 5HIXQG $FFRXQW DV
DSSURSULDWH IROORZLQJ ZKLFK WKH %RDUG RI 'LUHFWRUV RU DQ\ GXO\ FRQVWLWXWHG
FRPPLWWHHWKHUHRIVKDOO$OORWWKH1&'VWRWKHVXFFHVVIXO$SSOLFDQWVSURYLGHG
WKDWWKHVXPVUHFHLYHGLQUHVSHFWRIWKH,VVXHZLOOEHNHSWLQWKH(VFURZ$FFRXQW
XSWRWKLVGDWH
'HVLJQDWHG6WRFN([FKDQJH
%6(
'UDIW3URVSHFWXV
7KH GUDIW SURVSHFWXV GDWHG 0DUFK ILOHG E\ WKH &RPSDQ\ ZLWK WKH
'HVLJQDWHG6WRFN([FKDQJHIRUWKHSXUSRVHRIVHHNLQJFRPPHQWVLQDFFRUGDQFH
ZLWKWKHUHJXODWLRQRI6(%,'HEW5HJXODWLRQVRQ0DUFK
(VFURZ$FFRXQWV
$FFRXQWVRSHQHGZLWKWKH(VFURZ&ROOHFWLRQ%DQNVLQWRZKLFKWKH0HPEHUVRI
WKH 6\QGLFDWH DQG WKH 7UDGLQJ 0HPEHUV DV WKH FDVH PD\ EH ZLOO GHSRVLW
$SSOLFDWLRQ$PRXQWVIURPQRQ$6%$$SSOLFDQWVDQGLQZKRVHIDYRXUQRQ$6%$
$SSOLFDQWVZLOOLVVXHFKHTXHVRUEDQNGUDIWVLQUHVSHFWRIWKH$SSOLFDWLRQ$PRXQW
ZKLOHVXEPLWWLQJWKH$SSOLFDWLRQ)RUPLQWHUPVRIWKLV3URVSHFWXVDQGWKH(VFURZ
$JUHHPHQW
(VFURZ$JUHHPHQW
$JUHHPHQW GDWHG 0DUFK HQWHUHG LQWR DPRQJVW WKH &RPSDQ\ WKH
5HJLVWUDUWRWKH,VVXHWKH/HDG0DQDJHUVDQGWKH(VFURZ&ROOHFWLRQ%DQNV
IRU FROOHFWLRQ RI WKH $SSOLFDWLRQ $PRXQWV DQG ZKHUH DSSOLFDEOH UHIXQGV RI WKH
DPRXQWVFROOHFWHGIURPWKH$SSOLFDQWVRWKHUWKDQ$6%$$SSOLFDQWVRQWKHWHUPV
DQGFRQGLWLRQVWKHUHRI
(TXLW\/LVWLQJ$JUHHPHQW
7KHOLVWLQJDJUHHPHQWVHQWHUHGLQWREHWZHHQRXU&RPSDQ\DQGWKHUHOHYDQWVWRFN
H[FKDQJHVLQFRQQHFWLRQZLWKWKHOLVWLQJRIWKH(TXLW\6KDUHVRIRXU&RPSDQ\
)3,V
)RUHLJQ SRUWIROLR LQYHVWRU XQGHU WKH 6(%, )RUHLJQ 3RUWIROLR ,QYHVWRUV
5HJXODWLRQV
,553/
,QGLDQ5DWLQJV5HVHDUFK3ULYDWH/LPLWHG
,6HF
,&,&,6HFXULWLHV/LPLWHG
,VVXH
3XEOLFLVVXHE\RXU&RPSDQ\RI1&'VDJJUHJDWLQJXSWR` ODNKVZLWKDQRSWLRQ
WR UHWDLQ RYHUVXEVFULSWLRQ XSWR ` ODNKV IRU LVVXDQFH RI DGGLWLRQDO 1&'V
DJJUHJDWLQJWRDWRWDORIXSWR` ODNKV
,VVXH&ORVLQJ'DWH
0D\RUVXFKHDUO\RUH[WHQGHGGDWHDVPD\EHGHFLGHGE\WKH%RDUGRUWKH
GXO\FRQVWLWXWHGFRPPLWWHHRIWKH%RDUG
,VVXH2SHQLQJ'DWH
$SULO
,VVXH3HULRG
7KHSHULRGEHWZHHQWKH,VVXH2SHQLQJ'DWHDQGWKH,VVXH&ORVLQJ'DWHLQFOXVLYHRI
ERWK GD\V GXULQJ ZKLFK SURVSHFWLYH $SSOLFDQWV PD\ VXEPLW WKHLU $SSOLFDWLRQ
)RUPV
/HDG%URNHUV
$ . 6WRFNPDUW 3ULYDWH /LPLWHG $[LV &DSLWDO /LPLWHG (GHOZHLVV %URNLQJ
/LPLWHG +')& 6HFXULWLHV /LPLWHG ,&,&, 6HFXULWLHV /LPLWHG DV D /HDG %URNHU
,QGLD ,QIROLQH /LPLWHG,QWHJUDWHG (QWHUSULVHV ,QGLD /LPLWHG -0 )LQDQFLDO
6HUYLFHV /LPLWHG.RWDN 6HFXULWLHV /LPLWHG 5 5 (TXLW\ %URNHUV 3ULYDWH /LPLWHG
60& *OREDO 6HFXULWLHV /LPLWHG 7DWD 6HFXULWLHV /LPLWHG 7LSVRQV 6WRFN %URNHUV
3ULYDWH/LPLWHG63$6HFXULWLHV/LPLWHGDQG-XVW7UDGH6HFXULWLHV/LPLWHG
/HDG0DQDJHUV/0V
,&,&,6HFXULWLHV/LPLWHGDQG$.&DSLWDO6HUYLFHV/LPLWHG
/LPLWHG/LDELOLW\3DUWQHUVKLSV
/LPLWHG OLDELOLW\ SDUWQHUVKLSV UHJLVWHUHG XQGHU WKH /LPLWHG /LDELOLW\ 3DUWQHUVKLS
$FW
0DUNHW/RW
2QH1&'
0DWXULW\ $PRXQW 5HGHPSWLRQ ,Q UHVSHFW RI 1&'V $OORWWHG WR D 'HEHQWXUH +ROGHU WKH IDFH YDOXH RI WKH 1&'V
$PRXQW
DORQJZLWKLQWHUHVWWKDWPD\KDYHDFFUXHGDVRQWKH5HGHPSWLRQ'DWH
0HPEHUVRIWKH6\QGLFDWH
7KH/HDG0DQDJHUVWKH/HDG%URNHUVIRUWKHSXUSRVHRIPDUNHWLQJRIWKH,VVXH
EURNHUVDQGVXE±EURNHUV
0,2,6
0XPEDL,QWHU%DQN2YHUQLJKW,QGH[HG0LGPDUNHW5DWH
06(
0DGUDV6WRFN([FKDQJH/LPLWHG
1&'V
6HFXUHGUHGHHPDEOHQRQFRQYHUWLEOHGHEHQWXUHVRIIDFHYDOXHRI `HDFKWR
EHLVVXHGXQGHUWKH,VVXH
15,V
3HUVRQVUHVLGHQWRXWVLGH,QGLDZKRDUHFLWL]HQVRI,QGLDRUSHUVRQVRI,QGLDQRULJLQ
DQG VKDOO KDYH WKH PHDQLQJ DVFULEHG WR VXFK WHUP LQ WKH )RUHLJQ ([FKDQJH
0DQDJHPHQW'HSRVLW5HJXODWLRQV
16(
1DWLRQDO6WRFN([FKDQJHRI,QGLD/LPLWHG
3URVSHFWXV
7KLV3URVSHFWXVGDWHG0DUFKWREHILOHGZLWKWKH5R&LQDFFRUGDQFHZLWK
7HUP
'HVFULSWLRQ
WKH6(%,'HEW5HJXODWLRQVFRQWDLQLQJLQWHUDOLDWKHFRXSRQUDWHVWKHWHUPVRIWKH
,VVXHDQGWKHWHUPVDQGFRQGLWLRQVRIWKH1&'V
3XEOLF,VVXH$FFRXQW
$Q DFFRXQW RSHQHG ZLWK RQH RU PRUH RI WKH %DQNHUV WR WKH ,VVXH WR UHFHLYH
PRQLHVIURPWKH(VFURZ$FFRXQWVIRUWKH,VVXHDQGWKH6&6%VDVWKHFDVHPD\
EHRQWKH'HVLJQDWHG'DWH
5HFRUG'DWH
7KHGDWHIRUSD\PHQWRILQWHUHVWLQFRQQHFWLRQZLWKWKH1&'VRUUHGHPSWLRQRIWKH
1&'V ZKLFKVKDOOEHILIWHHQGD\VSULRUWRWKHGDWHRQZKLFKLQWHUHVWLVGXH
DQGSD\DEOHDQGRUWKHGDWHRIUHGHPSWLRQ,QWKHHYHQWWKH5HFRUG'DWHIDOOVRQD
6DWXUGD\ 6XQGD\ RU D SXEOLF KROLGD\ LQ &KHQQDL RU DQ\ RWKHU SD\PHQW FHQWUH
QRWLILHGLQWHUPVRIWKH1HJRWLDEOH,QVWUXPHQWV$FWWKHVXFFHHGLQJ%XVLQHVV
'D\ZLOOEHFRQVLGHUHGDVWKH5HFRUG'DWH
5HGHPSWLRQ'DWH
7KHGDWHRIUHGHPSWLRQIRUHDFK6HULHVRI1&'V
5HIRUPDWWHG$XGLWHG)LQDQFLDO
7KH UHIRUPDWWHG DXGLWHG ILQDQFLDO LQIRUPDWLRQ RQ D FRQVROLGDWHG DQG VWDQGDORQH
6WDWHPHQWV
EDVHVSUHSDUHGXQGHU,QGLDQ*$$3IRUWKHVL[PRQWKVHQGHG6HSWHPEHU
DQGWKHILQDQFLDO\HDUVHQGHG0DUFKDQG
5HIXQG$FFRXQW
7KH DFFRXQW RSHQHG ZLWK WKH 5HIXQG %DQN IURP ZKLFK UHIXQGV LI DQ\ RI WKH
ZKROH RU SDUW RI WKH $SSOLFDWLRQ $PRXQW H[FOXGLQJ $SSOLFDWLRQ $PRXQWV IURP
$6%$$SSOLFDQWVVKDOOEHPDGH
5HIXQG%DQN
7KH%DQNHUVWRWKH,VVXHZLWKZKRPWKH5HIXQG$FFRXQWVZLOOEHRSHQHGLQWKLV
FDVHEHLQJ,QGXVLQG%DQN/LPLWHG
5HIXQG,QWHUHVW
,QWHUHVWSDLGRQ$SSOLFDWLRQ$PRXQWVOLDEOHWREHUHIXQGHGLQDPDQQHUDV PRUH
SDUWLFXODUO\GHWDLOHGLQ³7HUPVRIWKH,VVXH±,QWHUHVW´RQSDJH
5HJLVWHURI'HEHQWXUH+ROGHUV
7KHUHJLVWHURI 'HEHQWXUH+ROGHUVPDLQWDLQHGE\WKH,VVXHULQDFFRUGDQFH
ZLWK WKH SURYLVLRQV RI WKH &RPSDQLHV $FW DQG DV PRUH SDUWLFXODUO\
GHWDLOHGLQWKHVHFWLRQWLWOHG³7HUPVRIWKH,VVXH±5HJLVWHURI1&'+ROGHUV´RQ
SDJH
³5HJLVWUDU WR WKH ,VVXH´ RU 6KULUDP,QVLJKW6KDUH%URNHUV/LPLWHG
³5HJLVWUDU´
5HJLVWUDU0R8
0HPRUDQGXP RI XQGHUVWDWLQJ GDWHG 0DUFK HQWHUHG LQWR EHWZHHQ RXU
&RPSDQ\DQGWKH5HJLVWUDUWRWKH,VVXH
6HFXULW\
)LUVW DQG H[FOXVLYH FKDUJH RQ VSHFLILHG IXWXUH UHFHLYDEOHV RI RXU &RPSDQ\ LQ
IDYRXU RI WKH 'HEHQWXUH 7UXVWHH DQG SDUL SDVVX FKDUJH RQ LGHQWLILHG LPPRYDEOH
SURSHUW\ RI RXU &RPSDQ\ DV PD\ EH GHFLGHG PXWXDOO\ E\ RXU &RPSDQ\ DQG WKH
'HEHQWXUH7UXVWHH
6HULHV'HEHQWXUH+ROGHUV
$KROGHURIWKH1&'VRIDSDUWLFXODU6HULHVLVVXHGXQGHUWKH,VVXH
6HULHVRI1&'V
$VHULHVRI1&'V ZKLFKDUHLGHQWLFDOLQDOO UHVSHFWVLQFOXGLQJEXWQRWOLPLWHGWR
WHUPVDQGFRQGLWLRQVOLVWLQJDQG,6,1QXPEHULQWKHHYHQWWKDW1&'VLQDVLQJOH
VHULHVFDUU\WKHVDPHFRXSRQUDWHDQGDVIXUWKHUUHIHUUHGWRDVDQLQGLYLGXDO6HULHV
LQWKLV3URVSHFWXV
³6HOI &HUWLILHG 6\QGLFDWH %DQNV´ RU 7KH EDQNV ZKLFK DUH UHJLVWHUHG ZLWK 6(%, XQGHU WKH 6HFXULWLHV DQG ([FKDQJH
³6&6%V´
%RDUG RI ,QGLD %DQNHUV WR DQ ,VVXH 5HJXODWLRQV DQG RIIHU VHUYLFHV LQ
UHODWLRQ WR $6%$ LQFOXGLQJ EORFNLQJ RI DQ $6%$ $FFRXQW D OLVW RI ZKLFK LV
DYDLODEOH RQ KWWSZZZVHELJRYLQVHELZHEKRPHOLVW5HFRJQLVHG
,QWHUPHGLDULHVRUDWVXFKRWKHUZHEVLWHDVPD\EHSUHVFULEHGE\6(%,IURPWLPHWR
WLPH
6WRFN([FKDQJHV
7KH16(%6(DQGWKH06(
6\QGLFDWH$6%$
$Q $SSOLFDWLRQ VXEPLWWHG E\ DQ $6%$ $SSOLFDQW WKURXJK WKH 0HPEHUV RI WKH
6\QGLFDWHDQG7UDGLQJ0HPEHUVLQVWHDGRIWKH'HVLJQDWHG%UDQFKHVRIWKH6&6%V
6\QGLFDWH
$6%$
$SSOLFDWLRQ $SSOLFDWLRQ FHQWUHV DW FLWLHV VSHFLILHG LQ WKH 6(%, &LUFXODU QR
/RFDWLRQV
&,5&)'',/ GDWHG $SULO QDPHO\ 0XPEDL &KHQQDL .RONDWD
'HOKL $KPHGDEDG 5DMNRW -DLSXU %HQJDOXUX +\GHUDEDG 3XQH 9DGRGDUD DQG
6XUDW ZKHUH WKH 0HPEHUV RI WKH 6\QGLFDWH DQG 7UDGLQJ 0HPEHUV VKDOO DFFHSW
$6%$$SSOLFDWLRQV
6\QGLFDWH6&6%%UDQFKHV
,Q UHODWLRQ WR $6%$ $SSOLFDWLRQV VXEPLWWHG WR D 0HPEHU RI WKH 6\QGLFDWH RU
7UDGLQJ0HPEHUVVXFKEUDQFKHVRIWKH6&6%VDWWKH6\QGLFDWH$6%$$SSOLFDWLRQ
/RFDWLRQVQDPHGE\WKH6&6%VWRUHFHLYHGHSRVLWVRIWKH$SSOLFDWLRQ)RUPVIURP
WKH 0HPEHUV RI WKH 6\QGLFDWH DQG D OLVW RI ZKLFK LV DYDLODEOH RQ
KWWSZZZVHELJRYLQVHELZHEKRPHOLVW5HFRJQLVHG,QWHUPHGLDULHVRUDW
VXFKRWKHUZHEVLWHDVPD\EHSUHVFULEHGE\6(%,IURPWLPHWRWLPH
7UDGLQJ0HPEHUV
,QWHUPHGLDULHV UHJLVWHUHG DV EURNHUV RU VXEEURNHUV XQGHU WKH 6HFXULWLHV DQG
([FKDQJH %RDUG RI ,QGLD %URNHUV DQG 6XE %URNHUV 5HJXODWLRQV DQG ZLWK
WKH %6( XQGHU WKH DSSOLFDEOH E\HODZV UXOHV UHJXODWLRQV JXLGHOLQHV FLUFXODUV
LVVXHGE\WKH%6(IURPWLPHWRWLPHDQGGXO\UHJLVWHUHGZLWK%6(IRUFROOHFWLRQ
DQGHOHFWURQLFXSORDGRI$SSOLFDWLRQ)RUPVRQWKHHOHFWURQLFDSSOLFDWLRQSODWIRUP
SURYLGHGE\WKH%6(
7HUP
³7UDQVDFWLRQ5HJLVWUDWLRQ6OLS´RU
³756´
7ULSDUWLWH$JUHHPHQWV
:RUNLQJ'D\V
'HVFULSWLRQ
7KHVOLSRUGRFXPHQWLVVXHGE\DQ\RIWKH0HPEHUVRIWKH6\QGLFDWHWKH6&6%V
RUWKH7UDGLQJ0HPEHUVDVWKHFDVHPD\EHWRDQ$SSOLFDQWXSRQGHPDQGDVSURRI
RIUHJLVWUDWLRQRIKLVDSSOLFDWLRQIRUWKH1&'V
$JUHHPHQWVHQWHUHGLQWREHWZHHQWKH,VVXHU5HJLVWUDUDQGHDFKRIWKH'HSRVLWRULHV
XQGHU WKH WHUPV RI ZKLFK WKH 'HSRVLWRULHV DJUHH WR DFW DV GHSRVLWRULHV IRU WKH
VHFXULWLHVLVVXHGE\WKH,VVXHU
$OOGD\V H[FOXGLQJ 6XQGD\V RUD SXEOLFKROLGD\LQ,QGLD RUDWDQ\RWKHU
SD\PHQWFHQWUHQRWLILHGLQWHUPVRIWKH1HJRWLDEOH,QVWUXPHQWV$FW
&RQYHQWLRQDODQG*HQHUDO7HUPVRU$EEUHYLDWLRQV
7HUP$EEUHYLDWLRQ
$*0
$6
$XWRPRWLYH0LVVLRQ3ODQ
%)6
&$*5
&'6/
&,&
&-0
&RPSDQLHV$FW
&5$5
&65
&U3&
',1
'HSRVLWRU\LHV
'HSRVLWRULHV$FW
'3'HSRVLWRU\3DUWLFLSDQW
'55
'57
'7&
)&15$FFRXQW
)',
)(0$
),00'$
),5
)LQDQFLDO<HDU)LVFDO)<
*'3
*R,RU*RYHUQPHQW
+8)
+)&
,$6
,$$6
,&$,
,)56
,0DFV
,QFRPH7D[$FW
,QGLDQ*$$3
,3&
,6,1
,7
-9
/,%25
/&9
/79
0R)
0&$
0+&9
1%)&
1(&6
1()7
1*2
'HVFULSWLRQ)XOO)RUP
$QQXDO*HQHUDO0HHWLQJ
$FFRXQWLQJ6WDQGDUGVLVVXHGE\,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWVRI,QGLD
$XWRPRWLYH0LVVLRQ3ODQSUHSDUHGE\WKH0LQLVWU\RI+HDY\,QGXVWULHV
DQG3XEOLF(QWHUSULVHV*RYHUQPHQWRI,QGLD
%RDUGIRU)LQDQFLDO6XSHUYLVLRQ
&RPSRXQGHG$QQXDO*URZWK5DWH
&HQWUDO'HSRVLWRU\6HUYLFHV,QGLD/LPLWHG
&RUH,QYHVWPHQW&RPSDQ\
&KLHI-XGLFLDO0DJLVWUDWH
&RPSDQLHV$FWDVDPHQGHG
&DSLWDOWR5LVN$VVHWV5DWLR
&RUSRUDWH6RFLDO5HVSRQVLELOLW\
7KH&RGHRI&ULPLQDO3URFHGXUH
'LUHFWRU,GHQWLILFDWLRQ1XPEHU
&'6/DQG16'/
'HSRVLWRULHV$FW
'HSRVLWRU\3DUWLFLSDQWDVGHILQHGXQGHUWKH'HSRVLWRULHV$FW
'HEHQWXUH5HGHPSWLRQ5HVHUYH
'HEW5HFRYHU\7ULEXQDO
'LUHFW7D[&RGH
)RUHLJQ&XUUHQF\1RQ5HVLGHQW$FFRXQW
)RUHLJQ'LUHFW,QYHVWPHQW
)RUHLJQ([FKDQJH0DQDJHPHQW$FW
)L[HG,QFRPH0RQH\0DUNHWDQG'HULYDWLYH$VVRFLDWLRQRI,QGLD
)LUVW,QIRUPDWLRQ5HSRUW
3HULRGRIPRQWKVHQGHG0DUFKRIWKDWSDUWLFXODU\HDU
*URVV'RPHVWLF3URGXFW
*RYHUQPHQWRI,QGLD
+LQGX8QGLYLGHG)DPLO\
+RXVLQJILQDQFHFRPSDQ\
,QGLDQ$GPLQLVWUDWLYH6HUYLFH
,QGLDQ$XGLWVDQG$FFRXQWV6HUYLFH
,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWVRI,QGLD
,QWHUQDWLRQDO)LQDQFLDO5HSRUWLQJ6WDQGDUGV
,&5$0DQDJHPHQW&RQVXOWLQJ6HUYLFHV/LPLWHG
,QFRPH7D[$FW
*HQHUDOO\DFFHSWHGDFFRXQWLQJSULQFLSOHVIROORZHGLQ,QGLD
7KH,QGLDQ3HQDO&RGH
,QWHUQDWLRQDO6HFXULWLHV,GHQWLILFDWLRQ1XPEHU
,QIRUPDWLRQWHFKQRORJ\
-RLQW9HQWXUH
/RQGRQ,QWHU%DQN2IIHU5DWH
/LJKWFRPPHUFLDOYHKLFOHV
/RDQWRYDOXH
0LQLVWU\RI)LQDQFH*R,
0LQLVWU\RI&RUSRUDWH$IIDLUV*R,
0HGLXPDQGKHDY\FRPPHUFLDOYHKLFOH
1RQ%DQNLQJ)LQDQFH&RPSDQ\DVGHILQHGXQGHUDSSOLFDEOH5%,JXLGHOLQHV
1DWLRQDO(OHFWURQLF&OHDULQJ6\VWHP
1DWLRQDO(OHFWURQLF)XQG7UDQVIHU
1RQJRYHUQPHQWDORUJDQLVDWLRQV
7HUP$EEUHYLDWLRQ
16'/
15RU³1RQUHVLGHQW´
SD
3$1
3$7
3),
333
5%,
5%,$FW
“`”RU³5XSHHV´RU³,QGLDQ5XSHHV´
RU³5V´
57*6
6$5)$(6,$FW
6(%,
6(%,$FW
6(%,'HEW5HJXODWLRQV
'HVFULSWLRQ)XOO)RUP
1DWLRQDO6HFXULWLHV'HSRVLWRU\/LPLWHG
$SHUVRQUHVLGHQWRXWVLGH,QGLDDVGHILQHGXQGHU)(0$
3HUDQQXP
3HUPDQHQW$FFRXQW1XPEHU
3URILW$IWHU7D[
3XEOLF )LQDQFLDO ,QVWLWXWLRQ DV GHILQHG XQGHU 6HFWLRQ $ RI WKH &RPSDQLHV $FW
3XEOLF3ULYDWH3DUWQHUVKLS
5HVHUYH%DQNRI,QGLD
5HVHUYH%DQNRI,QGLD$FW
7KHODZIXOFXUUHQF\RI,QGLD
5HDO7LPH*URVV6HWWOHPHQW
6HFXULWLVDWLRQDQG5HFRQVWUXFWLRQRI)LQDQFLDO$VVHWVDQG(QIRUFHPHQWRI6HFXULW\
,QWHUHVW$FW
6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD
6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD$FW
6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD ,VVXH DQG /LVWLQJ RI 'HEW 6HFXULWLHV
5HJXODWLRQV
%XVLQHVV,QGXVWU\5HODWHG7HUPV
7HUP$EEUHYLDWLRQ
$/&2
$/0
&5$5
*ROG/RDQV
,%3&
,0D&6
,0D&6,QGXVWU\5HSRUW
,0D&6,QGXVWU\5HSRUW8SGDWH
.<&
1%)&
1%)&'
13$
1662
333
55%
6&%
'HVFULSWLRQ)XOO)RUP
$VVHW/LDELOLW\0DQDJHPHQW&RPPLWWHH
$VVHW/LDELOLW\0DQDJHPHQW
&DSLWDOWR5LVN$GMXVWHG5DWLR
3HUVRQDODQGEXVLQHVVORDQVVHFXUHGE\JROGMHZHOOHU\DQGRUQDPHQWV
,QWHU%DQN3DUWLFLSDWLRQ&HUWLILFDWH
,&5$0DQDJHPHQW&RQVXOWLQJ6HUYLFHV/LPLWHG
,0D&65HVHDUFK$QDO\WLFV,QGXVWU\5HSRUWV*ROG/RDQV0DUNHWLQ,QGLD
7KHXSGDWHIRUWKHFDOHQGDU\HDUWRWKH,0D&6,QGXVWU\5HSRUW
.QRZ<RXU&XVWRPHU
1RQ%DQNLQJ)LQDQFLDO&RPSDQ\
1RQ%DQNLQJ)LQDQFLDO&RPSDQ\'HSRVLW7DNLQJ
1RQ3HUIRUPLQJ$VVHW
1DWLRQDO6DPSOH6XUYH\2UJDQLVDWLRQ
3XUFKDVLQJ3RZHU3DULW\
5HJLRQDO5XUDO%DQN
6FKHGXOHG&RPPHUFLDO%DQNV
1RWZLWKVWDQGLQJ DQ\WKLQJ FRQWDLQHG KHUHLQ FDSLWDOLVHG WHUPV WKDW KDYH EHHQ GHILQHG LQ WKH VHFWLRQV WLWOHG
³&DSLWDO 6WUXFWXUH´ ³5HJXODWLRQV DQG 3ROLFLHV´ ³+LVWRU\ DQG &HUWDLQ &RUSRUDWH 0DWWHUV´ ³6WDWHPHQW RI 7D[
%HQHILWV´³2XU0DQDJHPHQW´³)LQDQFLDO,QGHEWHGQHVV´³2XWVWDQGLQJ/LWLJDWLRQDQG0DWHULDO'HYHORSPHQWV´
DQG³,VVXH3URFHGXUH´RQSDJHVDQGUHVSHFWLYHO\ZLOOKDYHWKHPHDQLQJV
DVFULEHGWRWKHPLQVXFKVHFWLRQV
&(57$,1&219(17,21686(2)),1$1&,$/,1'8675<$1'0$5.(7'$7$$1'
&855(1&<2)35(6(17$721
&HUWDLQ&RQYHQWLRQV
$OOUHIHUHQFHVLQWKLV3URVSHFWXVWR³,QGLD´DUHWRWKH5HSXEOLFRI,QGLDDQGLWVWHUULWRULHVDQGSRVVHVVLRQV
)LQDQFLDO'DWD
8QOHVVVWDWHGRWKHUZLVHWKHILQDQFLDOGDWDLQWKLV3URVSHFWXVLVGHULYHGIURPRXU5HIRUPDWWHG$XGLWHG)LQDQFLDO
6WDWHPHQWV ,Q WKLV 3URVSHFWXV DQ\ GLVFUHSDQFLHV LQ DQ\ WDEOH EHWZHHQ WKH WRWDO DQG WKH VXPV RI WKH DPRXQWV
OLVWHGDUHGXHWRURXQGLQJRII$OOGHFLPDOVKDYHEHHQURXQGHGRIIWRWZRGHFLPDOSRLQWV
7KHFXUUHQWILQDQFLDO\HDURIRXU&RPSDQ\FRPPHQFHVRQ$SULODQGHQGVRQ0DUFKRIWKHQH[W\HDUVRDOO
UHIHUHQFHVWRSDUWLFXODU³ILQDQFLDO\HDU´³ILVFDO\HDU´DQG³ILVFDO´RU³)<´XQOHVVVWDWHGRWKHUZLVHDUHWRWKH
PRQWKVSHULRGHQGHGRQ0DUFKRIWKDW\HDU
7KHGHJUHHWRZKLFKWKH,QGLDQ*$$3ILQDQFLDOVWDWHPHQWVLQFOXGHGLQWKLV3URVSHFWXVZLOOSURYLGHPHDQLQJIXO
LQIRUPDWLRQ LV HQWLUHO\ GHSHQGHQW RQ WKH UHDGHUµV OHYHO RI IDPLOLDULW\ ZLWK ,QGLDQ DFFRXQWLQJ SUDFWLFHV $Q\
UHOLDQFHE\SHUVRQVQRWIDPLOLDUZLWK,QGLDQDFFRXQWLQJSUDFWLFHVRQWKHILQDQFLDOGLVFORVXUHVSUHVHQWHGLQWKLV
3URVSHFWXVVKRXOGDFFRUGLQJO\EHOLPLWHG
&XUUHQF\DQG8QLWRI3UHVHQWDWLRQ
,QWKLV3URVSHFWXVUHIHUHQFHVWR³`´³,QGLDQ5XSHHV´³,15´³5V´DQG³5XSHHV´DUHWRWKHOHJDOFXUUHQF\RI
,QGLD DQG UHIHUHQFHV WR ³86´ ³86'´ DQG ³86 GROODUV´ DUH WR WKH OHJDO FXUUHQF\ RI WKH 8QLWHG 6WDWHV RI
$PHULFD)RUWKHSXUSRVHVRIWKLV3URVSHFWXVGDWDZLOOEHJLYHQLQ` ODNKVH[FHSWGDWDSURYLGHGLQWKHVHFWLRQ
WLWOHG³,QGXVWU\2YHUYLHZ´ZKHUHWKHGDWDZLOOEHJLYHQLQ `LQPLOOLRQ,QWKH3URVSHFWXVDQ\GLVFUHSDQF\LQ
DQ\WDEOHEHWZHHQWRWDODQGWKHVXPRIWKHDPRXQWVOLVWHGDUHGXHWRURXQGLQJRII
,QGXVWU\DQG0DUNHW'DWD
$Q\LQGXVWU\DQGPDUNHWGDWDXVHGLQWKLV 3URVSHFWXVFRQVLVWVRIHVWLPDWHVEDVHGRQGDWDUHSRUWVFRPSLOHGE\
JRYHUQPHQWERGLHVSURIHVVLRQDORUJDQL]DWLRQVDQGDQDO\VWVGDWDIURPRWKHUH[WHUQDOVRXUFHVDQGNQRZOHGJHRI
WKHPDUNHWVLQZKLFKZHFRPSHWH7KHVHSXEOLFDWLRQVJHQHUDOO\VWDWHWKDWWKHLQIRUPDWLRQFRQWDLQHGWKHUHLQKDV
EHHQREWDLQHGIURPSXEOLFO\DYDLODEOHGRFXPHQWVIURPYDULRXVVRXUFHVEHOLHYHGWREHUHOLDEOHEXWLWKDVQRWEHHQ
LQGHSHQGHQWO\ YHULILHG E\ XV RU LWV DFFXUDF\ DQG FRPSOHWHQHVV LV QRW JXDUDQWHHG DQG LWV UHOLDELOLW\ FDQQRW EH
DVVXUHG$OWKRXJK ZHEHOLHYHWKHLQGXVWU\DQG PDUNHWGDWDXVHG LQWKLV 3URVSHFWXVLVUHOLDEOHLWKDVQRWEHHQ
LQGHSHQGHQWO\YHULILHGE\XV7KHGDWDXVHGLQWKHVHVRXUFHVPD\KDYHEHHQUHFODVVLILHGE\XVIRUSXUSRVHVRI
SUHVHQWDWLRQ'DWDIURPWKHVHVRXUFHVPD\DOVRQRWEHFRPSDUDEOH7KHH[WHQWWRZKLFKWKHLQGXVWU\DQGPDUNHW
GDWDLVSUHVHQWHGLQWKLV3URVSHFWXVLVPHDQLQJIXOGHSHQGVRQWKHUHDGHUµVIDPLOLDULW\ZLWKDQGXQGHUVWDQGLQJRI
WKH PHWKRGRORJLHV XVHG LQ FRPSLOLQJ VXFK GDWD 7KHUH DUH QR VWDQGDUG GDWD JDWKHULQJ PHWKRGRORJLHV LQ WKH
LQGXVWU\ LQ ZKLFK ZH FRQGXFW RXU EXVLQHVV DQG PHWKRGRORJLHV DQG DVVXPSWLRQV PD\ YDU\ ZLGHO\ DPRQJ
GLIIHUHQWPDUNHWDQGLQGXVWU\VRXUFHV
([FKDQJH5DWHV
7KHH[FKDQJHUDWHV`RIWKH86'DVDW0DUFKIRUWKHODVW\HDUVDQGDVDWWKHVL[PRQWKVHQGHG6HSWHPEHU
DQGWKHQLQHPRQWKVHQGHG'HFHPEHUDUHSURYLGHGEHORZ
&XUUHQF\
86'
'HFHPEHU
6HSWHPEHU
0DUFK
0DUFK
0DUFK
0DUFK
0DUFK
6RXUFH5%,UHIHUHQFHUDWHV
0DUFKEHLQJDKROLGD\WKHH[FKDQJHUDWHVRIWKHSUHYLRXV:RUNLQJ'D\LH0DUFKDUHSURYLGHG
0DUFKEHLQJDKROLGD\WKHH[FKDQJHUDWHVRIWKHSUHYLRXV:RUNLQJ'D\LH0DUFKDUHSURYLGHG
)25:$5'/22.,1*67$7(0(176
&HUWDLQ VWDWHPHQWV FRQWDLQHG LQ WKLV 3URVSHFWXV WKDW DUH QRW VWDWHPHQWV RI KLVWRULFDO IDFW FRQVWLWXWH
³IRUZDUGORRNLQJVWDWHPHQWV´,QYHVWRUVFDQJHQHUDOO\LGHQWLI\IRUZDUGORRNLQJVWDWHPHQWVE\WHUPLQRORJ\VXFK
DV ³DLP´ ³DQWLFLSDWH´ ³EHOLHYH´ ³FRQWLQXH´ ³FRXOG´ ³HVWLPDWH´ ³H[SHFW´ ³LQWHQG´ ³PD\´ ³REMHFWLYH´
³SODQ´³SRWHQWLDO´³SURMHFW´³SXUVXH´³VKDOO´³VHHN´³VKRXOG´³ZLOO´³ZRXOG´RURWKHUZRUGVRUSKUDVHVRI
VLPLODU LPSRUW 6LPLODUO\ VWDWHPHQWV WKDW GHVFULEH RXU VWUDWHJLHV REMHFWLYHV SODQV RU JRDOV DUH DOVR IRUZDUG
ORRNLQJVWDWHPHQWV $OOVWDWHPHQWVUHJDUGLQJRXUH[SHFWHGILQDQFLDOFRQGLWLRQVUHVXOWV RIRSHUDWLRQVEXVLQHVV
SODQVDQGSURVSHFWVDUHIRUZDUGORRNLQJVWDWHPHQWV7KHVHIRUZDUGORRNLQJVWDWHPHQWVLQFOXGHVWDWHPHQWVDVWR
RXUEXVLQHVVVWUDWHJ\UHYHQXHDQGSURILWDELOLW\QHZEXVLQHVVDQGRWKHUPDWWHUVGLVFXVVHGLQWKLV3URVSHFWXVWKDW
DUHQRWKLVWRULFDOIDFWV$OOIRUZDUGORRNLQJVWDWHPHQWVDUHVXEMHFWWRULVNVXQFHUWDLQWLHVDQGDVVXPSWLRQVDERXW
XVWKDWFRXOGFDXVHDFWXDOUHVXOWVWRGLIIHUPDWHULDOO\IURPWKRVHFRQWHPSODWHGE\WKHUHOHYDQWIRUZDUGORRNLQJ
VWDWHPHQW,PSRUWDQW IDFWRUVWKDWFRXOGFDXVH DFWXDOUHVXOWVWRGLIIHU PDWHULDOO\ IURPRXU H[SHFWDWLRQVLQFOXGH
DPRQJRWKHUV
YRODWLOLW\LQLQWHUHVWUDWHVIRUERWKRXUOHQGLQJDQGWUHDVXU\RSHUDWLRQV
DQ\GLVUXSWLRQLQIXQGLQJVRXUFHV
UHYLVLRQV WR SULRULW\ VHFWRU OHQGLQJ UHTXLUHPHQWV DGKHUHG WR E\ VFKHGXOHG FRPPHUFLDO EDQNV UHVXOWLQJ LQ
LQFUHDVHGFRVWRIIXQGLQJ
KLJKOHYHOVRIFXVWRPHUGHIDXOWV
LQDELOLW\WRFRPSHWHHIIHFWLYHO\LQDQLQFUHDVLQJO\FRPSHWLWLYHLQGXVWU\
LQDELOLW\ WR DFFXUDWHO\ DSSUDLVH RU UHFRYHU WKH IXOO YDOXH RI FROODWHUDO RU DPRXQWV ZKLFK DUH VXIILFLHQW WR
FRYHUWKHRXWVWDQGLQJDPRXQWVGXHXQGHUGHIDXOWHGORDQV
RXUDELOLW\WRUHVSRQGWRDQ\DGYHUVHFKDQJHVLQUHJXODWRU\SROLFLHV
RXUDELOLW\WRUHVSRQGWRFRPSHWLWLRQ
RXUDELOLW\WRUHVSRQGWRDQ\DGYHUVHUDWLQJVUHFHLYHGIURPFUHGLWUDWLQJDJHQFLHVLQ,QGLD
RXU DELOLW\ WR VXFFHVVIXOO\ LPSOHPHQW RXU VWUDWHJ\ RXU JURZWK DQG H[SDQVLRQ SODQV DQG WHFKQRORJLFDO
FKDQJHV
RXUDELOLW\WRFRPSHWHHIIHFWLYHO\DQGDFFHVVIXQGVDWFRPSHWLWLYHFRVW
DQ\FKDQJHVLQFRQQHFWLRQZLWKVWDWXWRU\SURYLVLRQVUHJXODWLRQVDQGRU5%,GLUHFWLRQVLQFRQQHFWLRQZLWK
1%)&VLQFOXGLQJODZVWKDWLPSDFWRXUOHQGLQJUDWHVDQGRXUDELOLW\WRHQIRUFHRXUFROODWHUDO
DQ\LQFUHDVHLQWKHOHYHOVRI13$VRQRXUORDQSRUWIROLRIRUDQ\UHDVRQZKDWVRHYHUDQG
RWKHUIDFWRUVGLVFXVVHGLQWKLV3URVSHFWXVLQFOXGLQJLQWKHVHFWLRQWLWOHG³5LVN)DFWRUV´RQSDJH
$GGLWLRQDOIDFWRUVWKDWFRXOGFDXVHDFWXDOUHVXOWVSHUIRUPDQFHRUDFKLHYHPHQWVWRGLIIHUPDWHULDOO\LQFOXGHEXW
DUH QRW OLPLWHG WR WKRVH GLVFXVVHG LQ WKH VHFWLRQ WLWOHG ³2XU %XVLQHVV´ RQ SDJH 7KH IRUZDUGORRNLQJ
VWDWHPHQWV FRQWDLQHG LQ WKLV 3URVSHFWXV DUH EDVHG RQ WKH EHOLHIV RI PDQDJHPHQW DV ZHOO DV WKH DVVXPSWLRQV
PDGH E\ DQG LQIRUPDWLRQ FXUUHQWO\ DYDLODEOH WR PDQDJHPHQW $OWKRXJK ZH EHOLHYH WKDW WKH H[SHFWDWLRQV
UHIOHFWHGLQVXFK IRUZDUGORRNLQJVWDWHPHQWVDUHUHDVRQDEOHDWWKLVWLPH ZH FDQQRWDVVXUH LQYHVWRUVWKDW VXFK
H[SHFWDWLRQV ZLOO SURYH WR EH FRUUHFW *LYHQ WKHVH XQFHUWDLQWLHV LQYHVWRUV DUH FDXWLRQHG QRW WR SODFH XQGXH
UHOLDQFHRQVXFKIRUZDUGORRNLQJVWDWHPHQWV,IDQ\RIWKHVHULVNVDQGXQFHUWDLQWLHVPDWHULDOL]HRULIDQ\RIRXU
XQGHUO\LQJDVVXPSWLRQVSURYHWREHLQFRUUHFWRXUDFWXDOUHVXOWVRIRSHUDWLRQVRUILQDQFLDOFRQGLWLRQFRXOGGLIIHU
PDWHULDOO\ IURPWKDWGHVFULEHGKHUHLQDVDQWLFLSDWHGEHOLHYHGHVWLPDWHGRUH[SHFWHG$OOVXEVHTXHQWIRUZDUG
ORRNLQJ VWDWHPHQWV DWWULEXWDEOH WR XV DUH H[SUHVVO\ TXDOLILHG LQ WKHLU HQWLUHW\ E\ UHIHUHQFH WR WKHVH FDXWLRQDU\
VWDWHPHQWV
5,6.)$&7256
3URVSHFWLYHLQYHVWRUVVKRXOGFDUHIXOO\FRQVLGHUWKHULVNVDQGXQFHUWDLQWLHVGHVFULEHGEHORZLQDGGLWLRQWRWKH
RWKHU LQIRUPDWLRQ FRQWDLQHG LQ WKLV 3URVSHFWXV LQFOXGLQJ WKH VHFWLRQV WLWOHG ³2XU %XVLQHVV´ DQG ³)LQDQFLDO
6WDWHPHQWV´DWSDJHVDQGUHVSHFWLYHO\EHIRUHPDNLQJDQ\LQYHVWPHQWGHFLVLRQUHODWLQJWRWKH1&'V,I
DQ\RIWKHIROORZLQJULVNVRURWKHUULVNVWKDWDUHQRWFXUUHQWO\NQRZQRUDUHQRZGHHPHGLPPDWHULDODFWXDOO\
RFFXU RXU EXVLQHVV ILQDQFLDO FRQGLWLRQ DQG UHVXOW RI RSHUDWLRQ FRXOG VXIIHU WKH WUDGLQJ SULFH RI WKH 1&'V
FRXOG GHFOLQH DQG \RX PD\ ORVH DOO RU SDUW RI \RXU LQWHUHVW DQG RU UHGHPSWLRQ DPRXQWV 7KH ULVNV DQG
XQFHUWDLQWLHV GHVFULEHG LQ WKLV VHFWLRQ DUH QRW WKH RQO\ ULVNV WKDW ZH FXUUHQWO\ IDFH $GGLWLRQDO ULVNV DQG
XQFHUWDLQWLHVQRWNQRZQWRXVRUWKDWZHFXUUHQWO\EHOLHYHWREHLPPDWHULDOPD\DOVRKDYHDQDGYHUVHHIIHFWRQ
RXUEXVLQHVVUHVXOWVRIRSHUDWLRQVDQGILQDQFLDOFRQGLWLRQ
8QOHVV RWKHUZLVH VWDWHG LQ WKH UHOHYDQW ULVN IDFWRUV VHW IRUWK EHORZ ZH DUH QRW LQ D SRVLWLRQ WR VSHFLI\ RU
TXDQWLI\WKHILQDQFLDORURWKHULPSOLFDWLRQVRIDQ\RIWKHULVNVPHQWLRQHGKHUHLQ7KHRUGHULQJRIWKHULVNIDFWRUV
LVLQWHQGHGWRIDFLOLWDWHHDVHRIUHDGLQJDQGUHIHUHQFHDQGGRHVQRWLQDQ\PDQQHULQGLFDWHWKHLPSRUWDQFHRI
RQHULVNIDFWRURYHUDQRWKHU
7KLV3URVSHFWXVFRQWDLQVIRUZDUGORRNLQJVWDWHPHQWVWKDWLQYROYHULVNDQGXQFHUWDLQWLHV2XU&RPSDQ\¶VDFWXDO
UHVXOWVFRXOGGLIIHUPDWHULDOO\IURPWKRVHDQWLFLSDWHGLQWKHVHIRUZDUGORRNLQJVWDWHPHQWVDVDUHVXOWRIVHYHUDO
IDFWRUVLQFOXGLQJWKHFRQVLGHUDWLRQVGHVFULEHGEHORZDQGHOVHZKHUHLQWKLV3URVSHFWXV
8QOHVV RWKHUZLVH VWDWHG ILQDQFLDO LQIRUPDWLRQ XVHG LQ WKLV VHFWLRQ LV GHULYHG IURP WKH 5HIRUPDWWHG $XGLWHG
)LQDQFLDO6WDWHPHQWVDVRIDQGIRUWKHVL[PRQWKVHQGHG6HSWHPEHUDQG\HDUVHQGHG0DUFK
DQGSUHSDUHGXQGHUWKH,QGLDQ*$$3
5,6.6,15(/$7,2172285%86,1(66
:HDUHDIIHFWHGE\YRODWLOLW\LQLQWHUHVWUDWHVIRUERWKRXUOHQGLQJDQGWUHDVXU\RSHUDWLRQVZKLFKFRXOG
FDXVHRXUQHWLQWHUHVWLQFRPHWRGHFOLQHDQGDGYHUVHO\DIIHFWRXUUHWXUQRQDVVHWVDQGSURILWDELOLW\
$VLJQLILFDQWFRPSRQHQWRIRXULQFRPHLVWKHLQWHUHVWLQFRPHZHUHFHLYHIURPRXUILQDQFLQJDFWLYLWLHVZKLFK
FRPSULVHGDQGRIRXUWRWDOUHYHQXHIRUWKHVL[PRQWKSHULRGHQGHG6HSWHPEHU
ILQDQFLDO\HDUVDQGUHVSHFWLYHO\
2XU LQFRPH IURP ILQDQFLQJ DFWLYLWLHV LV DIIHFWHG E\ DQ\ YRODWLOLW\ LQ LQWHUHVW UDWHV LQ RXU OHQGLQJ RSHUDWLRQV
,QWHUHVW UDWHV DUH KLJKO\ VHQVLWLYH WR PDQ\ IDFWRUV EH\RQG RXU FRQWURO LQFOXGLQJ WKH PRQHWDU\ SROLFLHV RI WKH
5%,GHUHJXODWLRQRIWKHILQDQFLDOVHFWRULQ,QGLDGRPHVWLFDQGLQWHUQDWLRQDOHFRQRPLFDQGSROLWLFDOFRQGLWLRQV
DQG RWKHU IDFWRUV ZKLFK KDYH KLVWRULFDOO\ JHQHUDWHG D UHODWLYHO\ KLJK GHJUHH RI YRODWLOLW\ LQ LQWHUHVW UDWHV LQ
,QGLD5LVHLQLQIODWLRQDQGFRQVHTXHQWFKDQJHVLQEDQNUDWHVUHSRUDWHVDQGUHYHUVHUHSRUDWHVE\WKH5%,KDV
OHGWRDQLQFUHDVHLQLQWHUHVWUDWHVRQORDQVSURYLGHGE\EDQNVDQGILQDQFLDOLQVWLWXWLRQV0RUHRYHULIWKHUHLVDQ
LQFUHDVHLQWKHLQWHUHVWUDWHVZHSD\RQRXUERUURZLQJVWKDWZHDUHXQDEOHWRSDVVWRRXUFXVWRPHUVZHPD\ILQG
LW GLIILFXOW WR FRPSHWH ZLWK RXU FRPSHWLWRUV ZKR PD\ KDYH DFFHVV WR ORZFRVW GHSRVLW IXQGV )XUWKHU WR WKH
H[WHQWRXUERUURZLQJVDUHOLQNHGWRPDUNHWLQWHUHVWUDWHVZHPD\KDYHWRSD\LQWHUHVWDWDKLJKHUUDWHWKDQRXU
FRPSHWLWRUVWKDWERUURZRQO\DWIL[HGLQWHUHVWUDWHV
)OXFWXDWLRQV LQ LQWHUHVW UDWHV PD\ DOVR DGYHUVHO\ DIIHFW RXU WUHDVXU\ RSHUDWLRQV ,Q D ULVLQJ LQWHUHVW UDWH
HQYLURQPHQW HVSHFLDOO\ LI WKH ULVH LV VXGGHQ RU VKDUS ZH FRXOG EH DGYHUVHO\ DIIHFWHG E\ WKH GHFOLQH LQ WKH
PDUNHWYDOXHRIRXUVHFXULWLHVSRUWIROLRDQGRWKHUIL[HGLQFRPHVHFXULWLHV,QDGGLWLRQWKHYDOXHRIDQ\LQWHUHVW
UDWHKHGJLQJLQVWUXPHQWVZHPD\HQWHULQWRLQWKHIXWXUHZRXOGEHDIIHFWHGE\FKDQJHVLQLQWHUHVWUDWHVZKLFK
FRXOG DGYHUVHO\ DIIHFW RXU DELOLW\ WR KHGJH DJDLQVW LQWHUHVW UDWH YRODWLOLW\ :H FDQQRW DVVXUH \RX WKDW ZH ZLOO
FRQWLQXH WR HQWHU LQWR VXFK LQWHUHVW UDWH KHGJLQJ LQVWUXPHQWV RU WKDW ZH ZLOO EH DEOH WR HQWHU LQWR WKH FRUUHFW
DPRXQWRIVXFKLQVWUXPHQWVWRDGHTXDWHO\KHGJHDJDLQVWLQWHUHVWUDWHYRODWLOLW\LQWKHIXWXUH
)XUWKHUSXUVXDQWWRRXUORDQDJUHHPHQWVZLWKFXVWRPHUVZHPD\OHQGPRQH\RQDORQJWHUPIL[HGLQWHUHVWUDWH
EDVLVW\SLFDOO\ZLWKRXWLQFOXGLQJDSURYLVLRQWKDWLQWHUHVWUDWHVGXHXQGHURXUORDQDJUHHPHQWVZLOOLQFUHDVHLI
LQWHUHVWUDWHVLQWKHPDUNHWLQFUHDVH$Q\LQFUHDVHLQLQWHUHVWUDWHVRQRXUERUURZLQJVRYHUWKHGXUDWLRQRIVXFK
ORDQVPD\UHVXOWLQRXUORVLQJLQWHUHVWLQFRPH2XULQDELOLW\WRHIIHFWLYHO\DQGHIILFLHQWO\PDQDJHLQWHUHVWUDWH
YDULDWLRQV DQG RXU IDLOXUH WR SDVV RQ LQFUHDVHG LQWHUHVW UDWHV RQ RXU ERUURZLQJV PD\ FDXVH RXU LQFRPH IURP
ILQDQFLQJ DFWLYLWLHV WR GHFOLQH ZKLFK ZRXOG GHFUHDVH RXU UHWXUQ RQ DVVHWV DQG FRXOG DGYHUVHO\ DIIHFW RXU
EXVLQHVVIXWXUHILQDQFLDOSHUIRUPDQFHDQGUHVXOWRIRSHUDWLRQV
2XUEXVLQHVVUHTXLUHVVXEVWDQWLDOFDSLWDODQGDQ\GLVUXSWLRQLQIXQGLQJVRXUFHVZRXOGKDYHDPDWHULDO
DGYHUVHHIIHFWRQRXUOLTXLGLW\DQGILQDQFLDOFRQGLWLRQ
$V D ILQDQFH FRPSDQ\ RXU OLTXLGLW\ DQG RQJRLQJ SURILWDELOLW\ DUH LQ ODUJH SDUW GHSHQGHQW XSRQ RXU WLPHO\
DFFHVV WR DQG WKH FRVWV DVVRFLDWHG ZLWK UDLVLQJ FDSLWDO 2XU IXQGLQJ UHTXLUHPHQWV KLVWRULFDOO\ KDYH EHHQ PHW
IURPDFRPELQDWLRQRIWHUPORDQVIURPEDQNVDQGILQDQFLDOLQVWLWXWLRQVLVVXDQFHRIUHGHHPDEOHQRQFRQYHUWLEOH
GHEHQWXUHVSXEOLFGHSRVLWVWKHLVVXHRIVXERUGLQDWHGERQGVDQGFRPPHUFLDOSDSHU7KXVRXUEXVLQHVVGHSHQGV
DQG ZLOOFRQWLQXH WRGHSHQG RQRXUDELOLW\WRDFFHVVGLYHUVLILHG ORZFRVWIXQGLQJVRXUFHV2XUDELOLW\WRUDLVH
IXQGVRQDFFHSWDEOHWHUPVDQGDWFRPSHWLWLYHUDWHVFRQWLQXHVWRGHSHQGRQYDULRXVIDFWRUVLQFOXGLQJRXUFUHGLW
UDWLQJV WKH UHJXODWRU\ HQYLURQPHQW DQG SROLF\ LQLWLDWLYHV LQ ,QGLD GHYHORSPHQWV LQ WKH LQWHUQDWLRQDO PDUNHWV
DIIHFWLQJWKH,QGLDQHFRQRP\LQYHVWRUV
DQGRUOHQGHUV
SHUFHSWLRQRIGHPDQGIRUGHEWDQGHTXLW\VHFXULWLHVRI
1%)&VDQGRXUFXUUHQWDQGIXWXUHUHVXOWVRIRSHUDWLRQVDQGILQDQFLDOFRQGLWLRQ
&KDQJHV LQ HFRQRPLF DQG ILQDQFLDO FRQGLWLRQV RU FRQWLQXLQJ ODFN RI OLTXLGLW\ LQ WKH PDUNHW FRXOG PDNH LW
GLIILFXOWIRUXVWRDFFHVVIXQGVDWFRPSHWLWLYHUDWHV$VDQ1%)&ZHDOVRIDFHFHUWDLQUHVWULFWLRQVRQRXUDELOLW\
WRUDLVH PRQH\ IURPLQWHUQDWLRQDO PDUNHWV ZKLFK PD\ IXUWKHUFRQVWUDLQRXUDELOLW\WRUDLVH IXQGVDWDWWUDFWLYH
UDWHV
6XFKFRQGLWLRQVPD\RFFXUDJDLQLQWKHIXWXUHDQGPD\OHDGWRDGLVUXSWLRQLQRXUSULPDU\IXQGLQJVRXUFHVDW
FRPSHWLWLYHFRVWVDQGZRXOGKDYHDPDWHULDODGYHUVHHIIHFWRQRXUOLTXLGLW\DQGILQDQFLDOFRQGLWLRQ
5HFHQWUHYLVLRQVWRSULRULW\VHFWRUOHQGLQJUHTXLUHPHQWVDGKHUHGWRE\VFKHGXOHGFRPPHUFLDOEDQNVPD\
LQFUHDVH RXU FRVW RI IXQGLQJ DQG DGYHUVHO\ DIIHFW RXU EXVLQHVV UHVXOWV RI RSHUDWLRQV DQG ILQDQFLDO
FRQGLWLRQ
7KH 5%, KDV VHW WDUJHWV DQG VXEWDUJHWV IRU GRPHVWLF DQG IRUHLJQ EDQNV RSHUDWLQJ LQ ,QGLD WR OHQG WR FHUWDLQ
GHVLJQDWHG SULRULW\ VHFWRUV WKDW LPSDFW ODUJH VHFWLRQV RI WKH SRSXODWLRQ ZHDNHU VHFWLRQV DQG VHFWRUV WKDW DUH
HPSOR\PHQWLQWHQVLYH VXFK DV DJULFXOWXUH DQG VPDOO HQWHUSULVHV 3XUVXDQW WR WKH 5%, FLUFXODU GDWHG -XO\ VFKHGXOHGFRPPHUFLDOEDQNVRSHUDWLQJLQ,QGLDDUHUHTXLUHGWRPDLQWDLQIRUIRUHLJQEDQNVZLWK
OHVVWKDQEUDQFKHVLQ,QGLDRIWKHLUDGMXVWHGQHWEDQNFUHGLWRUFUHGLWHTXLYDOHQWRI WKHLURIIEDODQFHVKHHW
H[SRVXUHZKLFKHYHULVKLJKHUDVSULRULW\VHFWRUDGYDQFHV)RUHLJQEDQNVZLWKRUPRUHEUDQFKHVLQ,QGLDDUH
UHTXLUHG WR DFKLHYH SULRULW\ VHFWRU OHQGLQJ WDUJHWV DQG VXEWDUJHWV ZLWKLQ D PD[LPXP SHULRG RI ILYH \HDUV
FRPPHQFLQJIURP$SULODQGHQGLQJRQ0DUFK 7KHVHLQFOXGHORDQVWRWKHDJULFXOWXUHVPDOO
HQWHUSULVHV ORZLQFRPH KRXVLQJ SURMHFWV RIIJULG UHQHZDEOH HQHUJ\ H[SRUWV DQG VLPLODU VHFWRUV ZKHUH WKH
*RYHUQPHQW VHHNV WR HQFRXUDJH WKH IORZ RI FUHGLW WR VWLPXODWH HFRQRPLF GHYHORSPHQW LQ ,QGLD &RPPHUFLDO
EDQNVLQWKHSDVWKDYHUHOLHGRQVSHFLDOL]HGLQVWLWXWLRQVLQFOXGLQJPLFURILQDQFHLQVWLWXWLRQVDQGRWKHUILQDQFLQJ
FRPSDQLHVLQFOXGLQJ1%)&VWRSURYLGHWKHPZLWKDFFHVVWRTXDOLI\LQJDGYDQFHVWKURXJKOHQGLQJSURJUDPVDQG
ORDQDVVLJQPHQWV
3XUVXDQWWRWKH5%,FLUFXODUGDWHG0D\ORDQVH[WHQGHGE\FRPPHUFLDOEDQNVWR1%)&VDIWHU$SULO
DUH QRW FRQVLGHUHG SULRULW\ VHFWRU ORDQV :KLOH VFKHGXOHG FRPPHUFLDO EDQNV PD\ VWLOO FKRRVH WR OHQG WR
1%)&VWKH\PD\FKDUJHKLJKHUUDWHVWRGRVREHFDXVHWKHVHORDQVQRORQJHUFRXQWWRZDUGVWKHLUSULRULW\VHFWRU
OHQGLQJUHTXLUHPHQWV7KLVKDVOHDGWRDQLQFUHDVHLQWKHUDWHVDWZKLFKVXFKORDQVKDYHKLVWRULFDOO\EHHQRIIHUHG
WR XV WKXV LQFUHDVLQJ RXU ERUURZLQJ FRVWV DQG DGYHUVHO\ DIIHFWLQJ RXU ILQDQFLDO FRQGLWLRQ DQG UHVXOWV RI
RSHUDWLRQ$VDUHVXOWRXUDFFHVVWRIXQGVDQGWKHFRVWRIRXUFDSLWDOKDVEHHQDGYHUVHO\DIIHFWHG
+LJKOHYHOVRIFXVWRPHUGHIDXOWVFRXOGDGYHUVHO\DIIHFWRXUEXVLQHVVILQDQFLDOFRQGLWLRQDQGUHVXOWVRI
RSHUDWLRQV
2XUEXVLQHVVLQYROYHVOHQGLQJPRQH\DQGDFFRUGLQJO\ZHDUHVXEMHFWWRFXVWRPHUGHIDXOWULVNVLQFOXGLQJGHIDXOW
RUGHOD\LQUHSD\PHQWRISULQFLSDORULQWHUHVWRQRXUORDQV&XVWRPHUVPD\GHIDXOWRQWKHLUREOLJDWLRQVWRXVDVD
UHVXOW RI YDULRXV IDFWRUV LQFOXGLQJ EDQNUXSWF\ ODFN RI OLTXLGLW\ ODFN RI EXVLQHVV DQG RSHUDWLRQDO IDLOXUH ,I
ERUURZHUVIDLOWRUHSD\ORDQVLQDWLPHO\PDQQHURUDWDOORXUILQDQFLDOFRQGLWLRQDQGUHVXOWVRIRSHUDWLRQVZLOO
EHDGYHUVHO\LPSDFWHG
,Q DGGLWLRQ RXU FXVWRPHU SRUWIROLR SULQFLSDOO\ FRQVLVWV RI LQGLYLGXDOV DQG VPDOO HQWHUSULVH ERUURZHUV 7KHVH
ERUURZHUV DUH W\SLFDOO\ IURP WKH ORZ RU PLGGOH LQFRPH JURXSV RU WKH VPDOO HQWHUSULVH VHFWRU DQG DUH XQGHU
EDQNHG ZLWK OLPLWHG DFFHVV WR ILQDQFLQJ IURP FRPPHUFLDO EDQNV RU RWKHU RUJDQL]HG OHQGHUV DQG LQ WXUQ D
OLPLWHGLIDQ\FUHGLWKLVWRU\
%RUURZHUVIURPWKHORZDQGPLGGOHLQFRPHJURXSVDQGVPDOOHQWHUSULVHVODFNWKHILQDQFLDOUHVLOLHQFHRIODUJHU
FRUSRUDWHERUURZHUVDQGDVDUHVXOWWKH\PD\EHPRUHDGYHUVHO\DIIHFWHGE\GHFOLQLQJ HFRQRPLFFRQGLWLRQV
7KHVHERUURZHUVDUHDOVRXQGHUEDQNHGZLWKOLPLWHGDFFHVVWRFUHGLWDQGOLPLWHGLIDQ\FUHGLWKLVWRU\8QOLNH
VHYHUDOGHYHORSHGHFRQRPLHVDQDWLRQZLGHFUHGLWEXUHDXKDVRQO\UHFHQWO\EHFRPHRSHUDWLRQDOLQ,QGLDVRWKHUH
LVOHVVILQDQFLDOLQIRUPDWLRQDYDLODEOHDERXWWKHFUHGLWZRUWKLQHVVRIFXVWRPHUVSDUWLFXODUO\LQGLYLGXDOVDQGVPDOO
EXVLQHVVHV)XUWKHUZHPD\QRWUHFHLYHXSGDWHGLQIRUPDWLRQUHJDUGLQJDQ\FKDQJHLQWKHILQDQFLDOFRQGLWLRQRI
RXU FXVWRPHUV RU ZH PD\ UHFHLYH LQDFFXUDWH RU LQFRPSOHWH LQIRUPDWLRQ DV D UHVXOW RI DQ\ IUDXGXOHQW
PLVUHSUHVHQWDWLRQRQWKHSDUWRIRXUFXVWRPHUV,WLVWKHUHIRUHGLIILFXOWWRFDUU\RXWSUHFLVHFUHGLWULVNDQDO\VHV
RQ RXU FOLHQWV DQG DV D UHVXOW RXU FUHGLW ULVN H[SRVXUH LV KLJKHU FRPSDUHG WR OHQGHUV RSHUDWLQJ LQ PRUH
GHYHORSHGHFRQRPLHV$OWKRXJKZHIROORZFHUWDLQSURFHGXUHVWRHYDOXDWHWKHFUHGLWSURILOHRIRXUFXVWRPHUVDW
WKHWLPHRIVDQFWLRQLQJDORDQZHJHQHUDOO\UHO\RQUHIHUUDOVIURPWKHFXUUHQWRUSDVWFXVWRPHUVRIRXU&RPSDQ\
RUWKRVHRIRWKHUHQWLWLHVLQWKH6KULUDP*URXSRSHUDWLQJXQGHUWKH³6KULUDP&KLWV´EUDQGQDPH:HFDQQRWEH
FHUWDLQ WKDW RXU ULVN PDQDJHPHQW FRQWUROV ZLOO FRQWLQXH WR EH VXIILFLHQW RU WKDW DGGLWLRQDO ULVN PDQDJHPHQW
SROLFLHV IRU LQGLYLGXDO ERUURZHUV ZLOO QRW EH UHTXLUHG )DLOXUH WR FRQWLQXRXVO\ PRQLWRU ORDQ FRQWUDFWV
SDUWLFXODUO\ IRU LQGLYLGXDO ERUURZHUV FRXOG DGYHUVHO\ DIIHFW RXU FUHGLW SRUWIROLR ZKLFK FRXOG KDYH D PDWHULDO
DQGDGYHUVH HIIHFWRQRXUUHVXOWVRIRSHUDWLRQVDQG ILQDQFLDOFRQGLWLRQ0RUHRYHUGLIILFXOWLHVLQDVVHVVLQJWKH
ULVNSURILOHRIRXUFXVWRPHUVPD\UHVXOWLQKLJKHUUDWHVRIGHIDXOWVDQGWKHOHYHORI13$VLQRXUSRUWIROLR
5RXWLQH LQVSHFWLRQV E\ WKH 5%, KDYH LQ WKH SDVW PDGH VRPH DGYHUVH REVHUYDWLRQV DQG LQGLFDWHG QRQ
FRPSOLDQFHVLQUHVSHFWRIWKHFRQGXFWRIRXUEXVLQHVV
5%, FRQGXFWV URXWLQH LQVSHFWLRQV RI RXU &RPSDQ\ DQG KDV GXULQJ VXFK LQVSHFWLRQV REVHUYHG FHUWDLQ
GHILFLHQFLHVDQGLQGLFDWHGFHUWDLQQRQFRPSOLDQFHVLQWKHFRQGXFWRIRXUEXVLQHVV,PSRVLWLRQRIDQ\SHQDOW\E\
5%,PD\KDYHDPDWHULDODGYHUVHHIIHFWRQRXUUHSXWDWLRQILQDQFLDOFRQGLWLRQDQGUHVXOWVRIRSHUDWLRQV
)RULQVWDQFHWKH5%,KDVSXUVXDQWWRLWVLQVSHFWLRQRIRXU&RPSDQ\IRU)LVFDOE\LWVOHWWHUGDWHG)HEUXDU\
LVVXHGFHUWDLQREVHUYDWLRQVFRQFHUQLQJRXUEXVLQHVVDQGRSHUDWLRQVLQFOXGLQJLQUHODWLRQWRRXUFDSLWDO
DGHTXDF\ UDWLR 13$ LGHQWLILFDWLRQ DQG SURYLVLRQLQJ QRUPV LVVXDQFH RI UHWDLO QRQFRQYHUWLEOH GHEHQWXUHV DQG
UHWDLOVXERUGLQDWHGGHEHQWXUHVRQDSULYDWHSODFHPHQWEDVLVWKHSRRORIORDQDVVHWVZHW\SLFDOO\XWLOLVHWRVHFXUH
RXUSXEOLFO\LVVXHGQRQFRQYHUWLEOHGHEHQWXUHVGLVEXUVHPHQWRIMHZHOORDQVDOOHJHGGHILFLHQFLHVLQSURFHVVLQJ
RIRXUORDQDSSOLFDWLRQVRXULQWHUQDOFRQWUROV\VWHPVLQVXUDQFHRYHURXUFDVKEDODQFHVDQGRXU,7V\VWHPVDQG
SROLFLHV:HKDYHILOHGRXUUHVSRQVHWRWKLVOHWWHUIURPWKH5%,E\DOHWWHUGDWHG0DUFK
2XULQDELOLW\WRFRPSHWHHIIHFWLYHO\LQDQLQFUHDVLQJO\FRPSHWLWLYHLQGXVWU\PD\DGYHUVHO\DIIHFWRXUQHW
LQWHUHVWPDUJLQVLQFRPHDQGPDUNHWVKDUH
2XU SULPDU\ FRPSHWLWRUV DUH RWKHU 1%)&V SXEOLF VHFWRU EDQNV SULYDWH VHFWRU EDQNV FRRSHUDWLYH EDQNV DQG
IRUHLJQ EDQNV DQG WKH XQRUJDQL]HG ILQDQFLHUV ZKR SULQFLSDOO\ RSHUDWH LQ WKH ORFDO PDUNHWV 2YHU WKH SDVW IHZ
\HDUVZHKDYHDOVRVHHQDQLQFUHDVHLQFRPSHWLWLRQDPRQJEDQNVQDWLRQDODQGIRUHLJQLQUHWDLOILQDQFLQJ:H
KDYH DOVR EHJXQ WR IDFH FRPSHWLWLRQ IURP EDQNV DQG KRXVLQJ ILQDQFH FRPSDQLHV GXH WR VLJQLILFDQW JURZWK LQ
YHKLFOH DQG KRXVLQJ ILQDQFLQJ 7KHVH EDQNV DQG KRXVLQJ ILQDQFLQJ FRPSDQLHV PD\ KDYH DFFHVV WR ORZ FRVW
IXQGVSURYLGLQJWKHPZLWKKLJKHUPDUJLQVDQGWKHDELOLW\WRRIIHUILQDQFLQJDWORZHUUDWHVRUH[LVWLQJEXVLQHVV
RXWOHWVKDYHH[SDQGHGWKHLUUHDFKWRUXUDODQGVHPLXUEDQPDUNHWVDQGPD\KDYHDEHWWHUXQGHUVWDQGLQJRIDQG
UHODWLRQVKLSV ZLWK FXVWRPHUV LQ WKHVH PDUNHWV ,Q DGGLWLRQ LQWHUHVW UDWH GHUHJXODWLRQ DQG RWKHU OLEHUDOL]DWLRQ
PHDVXUHV DIIHFWLQJ WKH YHKLFOH ILQDQFLQJ VHFWRU WRJHWKHU ZLWK LQFUHDVHG GHPDQG IRU FDSLWDO KDYH UHVXOWHG LQ
LQFUHDVHG FRPSHWLWLRQ )XUWKHUPRUH ILQDQFH SURGXFWV DUH EHFRPLQJ LQFUHDVLQJO\ VWDQGDUGL]HG DQG YDULDEOH
LQWHUHVW UDWH DQG SD\PHQW WHUPV DQG ORZHU SURFHVVLQJ IHHV DUH EHFRPLQJ LQFUHDVLQJO\ FRPPRQ LQ WKH ILQDQFH
VHFWRU LQ ,QGLD )RU WKH VPDOO HQWHUSULVH VHJPHQW SURJUHVVLYH UHIRUPV DQG UHJXODWRU\ FKDQJHV FRXOG SURYLGH
VPDOOHQWHUSULVHVZLWKHDVLHUDFFHVVWRILQDQFHIURPEDQNV1%)&VDQGRWKHUILQDQFLDOLQVWLWXWLRQVZKLFKFRXOG
LQFUHDVHWKHOHYHORIFRPSHWLWLRQLQWKHVHJPHQW
2XUDELOLW\WRFRPSHWHHIIHFWLYHO\ZLOOGHSHQGLQSDUWRQRXUDELOLW\WRPDLQWDLQRULQFUHDVHRXUPDUJLQV2XU
PDUJLQVDUHDIIHFWHGLQSDUWE\RXUDELOLW\WRFRQWLQXHWRVHFXUHORZFRVWIXQGLQJDQGWKHLQWHUHVWUDWHVDWZKLFK
ZHOHQGWRRXUFXVWRPHUV2XUDELOLW\WRVHFXUHORZFRVWIXQGLQJKDVEHHQLPSDFWHGVLJQLILFDQWO\E\FRPSHWLWLRQ
DQGUHFHQWUHJXODWRU\GHYHORSPHQWV6HH³5LVN)DFWRU2XUORDQVWRVPDOOHQWHUSULVHVEXVLQHVVHVGHSHQGRQWKH
SHUIRUPDQFH RI WKH VPDOO HQWHUSULVHV VHFWRU LQ ,QGLD FRPSHWLWLRQ IURP SXEOLF VHFWRU EDQNV DQG ILQDQFLDO
LQVWLWXWLRQV DQG RWKHU 1%)&V DQG JRYHUQPHQW SROLFLHV DQG VWDWXWRU\ DQGRU UHJXODWRU\ UHIRUPV LQ WKH VPDOO
HQWHUSULVHV ILQDQFH VHFWRU¶ ,Q OLJKW RI WKLV SUHVVXUH RXU DELOLW\ WR PDLQWDLQ RU LQFUHDVH RXU PDUJLQV ZLOO EH
GHSHQGHQW RQ RXU DELOLW\ WR SDVV RQ LQFUHDVHV LQ WKH LQWHUHVW UDWHV RQ RXU LQWHUHVWEHDULQJ OLDELOLWLHV WR RXU
FXVWRPHUV2XUDELOLW\WRLQFUHDVH LQWHUHVWUDWHVRQWKH ORDQV ZHH[WHQGKRZHYHULV OLPLWHGE\WKHLQFUHDVLQJ
SRSXODULW\ RI VWDQGDUGL]HG DQG YDULDEOH LQWHUHVW UDWH ILQDQFLQJ SURGXFWV YDULDEOH SD\PHQW WHUPV DQG ORZHU
SURFHVVLQJ IHHV 0RUHRYHU DQ\ LQFUHDVHV LQ WKH LQWHUHVW UDWHV RQ WKH ORDQV ZH H[WHQG PD\ DOVR UHVXOW LQ D
GHFUHDVHLQEXVLQHVVRULQFUHDVHLQRXU13$V
7KHUH FDQ EH QR DVVXUDQFH WKDW ZH ZLOO EH DEOH WR UHDFW HIIHFWLYHO\ WR WKHVH RU RWKHU PDUNHW GHYHORSPHQWV RU
FRPSHWHHIIHFWLYHO\ZLWKQHZDQGH[LVWLQJSOD\HUVLQWKHLQFUHDVLQJO\FRPSHWLWLYHILQDQFHLQGXVWU\,QFUHDVLQJ
FRPSHWLWLRQPD\KDYHDQDGYHUVHHIIHFWRQRXUQHWLQWHUHVWPDUJLQDQGRWKHULQFRPHDQGLIZHDUHXQDEOHWR
FRPSHWHVXFFHVVIXOO\RXUPDUNHWVKDUHPD\GHFOLQH
:HPD\QRWEHDFFXUDWHO\DSSUDLVHRUUHFRYHURQDWLPHO\EDVLVRUDWDOOWKHIXOOYDOXHRIFROODWHUDORU
DPRXQWVZKLFKDUHVXIILFLHQWWRFRYHUWKHRXWVWDQGLQJDPRXQWVGXHXQGHUGHIDXOWHGORDQVZKLFKFRXOG
DGYHUVHO\DIIHFWRXUEXVLQHVVDQGUHVXOWVRIRSHUDWLRQV
)RU RXU QHZ DQG SUHRZQHG YHKLFOH ORDQV DQG ILQDQFLQJ IRU WZR ZKHHOHUV WKH YHKLFOH RU WZRZKHHOHU LV
W\SLFDOO\K\SRWKHFDWHGLQIDYRURIRXU&RPSDQ\IRUWKHWHQXUHRIWKHORDQ7KHYDOXHRIWKHDVVHWKRZHYHULV
VXEMHFWWRGHSUHFLDWLRQGHWHULRUDWLRQDQGRUUHGXFWLRQLQYDOXHRQDFFRXQWRIRWKHUH[WUDQHRXVUHDVRQVRYHUWKH
FRXUVHRIWLPH&RQVHTXHQWO\WKHUHDOL]DEOHYDOXHRIWKHFROODWHUDOIRUWKHFUHGLWIDFLOLW\SURYLGHGE\XVZKHQ
OLTXLGDWHG PD\ EH ORZHU WKDQ WKH RXWVWDQGLQJ ORDQ IURP VXFK FXVWRPHUV 7KH K\SRWKHFDWHG DVVHWV EHLQJ
PRYDEOHSURSHUW\ PD\EHGLIILFXOWWRORFDWHRUVHL]HLQWKHHYHQWRIDQ\GHIDXOWE\RXUFXVWRPHUV7KHUHFDQ
DOVREHQRDVVXUDQFHWKDWZHZLOOEHDEOHWRVHOOVXFKDVVHWVSURYLGHGDVFROODWHUDODWSULFHVVXIILFLHQWWRFRYHUWKH
DPRXQWVXQGHUGHIDXOW,QDGGLWLRQWKHUHPD\EHGHOD\VDVVRFLDWHGZLWKVXFKSURFHVV
,Q FRQQHFWLRQ ZLWK ORDQV DJDLQVW JROG SURYLGHG E\ XV WKH JROG MHZHOU\ DQGRU RUQDPHQWV DUH SURYLGHG DV
FROODWHUDO $Q HFRQRPLF GRZQWXUQ RU VKDUS GRZQZDUG PRYHPHQW LQWKH SULFH RI JROG FRXOG UHVXOW LQ D IDOO LQ
FROODWHUDOYDOXHV,QWKHHYHQWRIDQ\GHFUHDVHLQWKHSULFHRIJROGFXVWRPHUVPD\QRWUHSD\WKHLUORDQVDQGWKH
FROODWHUDOJROGMHZHOU\VHFXULQJWKHORDQVPD\KDYHGHFUHDVHGVLJQLILFDQWO\LQYDOXHUHVXOWLQJLQORVVHVZKLFK
ZHPD\QRWEHDEOHWRVXSSRUW1RDVVXUDQFHFDQEHJLYHQWKDWLIWKHSULFHRIJROGGHFUHDVHGVLJQLILFDQWO\RXU
ILQDQFLDO FRQGLWLRQ DQG UHVXOWV RI RSHUDWLRQV IURP WKLV EXVLQHVV SURGXFW ZRXOG QRW EH DGYHUVHO\ DIIHFWHG 7KH
LPSDFWRQRXUILQDQFLDOSRVLWLRQDQGUHVXOWVRIRSHUDWLRQV RIDK\SRWKHWLFDOGHFUHDVHLQ JROGYDOXHVFDQQRWEH
UHDVRQDEO\ HVWLPDWHG EHFDXVH WKH PDUNHW DQG FRPSHWLWLYH UHVSRQVH WR FKDQJHV LQ JROG YDOXHV LV QRW SUH
GHWHUPLQDEOH $GGLWLRQDOO\ ZH PD\QRWEHDEOHWRUHDOL]HWKH IXOOYDOXHRIWKHFROODWHUDOGXHWRDPRQJRWKHU
WKLQJVGHIHFWVLQWKHTXDOLW\RIJROGRUZDVWDJHRQPHOWLQJJROGMHZHOU\LQWRJROGEDUV
)RU SHUVRQDO ORDQV DQG ORDQV WR VPDOO HQWHUSULVHV ZKHUH WKH ERUURZHU LV DOVR DQ H[LVWLQJ FXVWRPHU RI HQWLWLHV
RSHUDWLQJ XQGHU WKH µ6KULUDP &KLWV¶ EUDQG QDPH ZH W\SLFDOO\ FUHDWH D OLHQ RYHU WKH FKLW GHSRVLWV RI WKH
ERUURZHU,IWKHYDOXHRIWKHFKLWGHSRVLWVLVLQVXIILFLHQWWRFRYHUWKHHQWLUHORDQDPRXQWRUWKHERUURZHULVQRW
DQH[LVWLQJFXVWRPHURI6KULUDP&KLWVZHW\SLFDOO\UHTXLUHLPPRYDEOHRUPRYDEOHSURSHUW\WREHSURYLGHGDV
FROODWHUDO IRU WKH UHPDLQLQJ YDOXH RI WKH ORDQ DPRXQW ,Q FDVHV ZKHUH WKH ERUURZHU LV XQDEOH WR SURYLGH
LPPRYDEOHRUPRYDEOHSURSHUW\DVFROODWHUDOWKHERUURZHULVW\SLFDOO\UHTXLUHGWRIXUQLVKDJXDUDQWHHIURPDQ
H[LVWLQJ RU D IRUPHU FXVWRPHU $Q\ GHWHULRUDWLRQ LQ WKH YDOXH RI VXFK DGGLWLRQDO FROODWHUDO RU RXU IDLOXUH WR
HQIRUFHVXFKJXDUDQWHHVRUWRHQIRUFHRXULQWHUHVWVLQVXFKFROODWHUDOLQDWLPHO\PDQQHURUDWDOOFRXOGDGYHUVHO\
DIIHFWRXURSHUDWLRQVDQGSURILWDELOLW\
$Q\ GHIDXOW LQ UHSD\PHQW RI WKH RXWVWDQGLQJ FUHGLW REOLJDWLRQV E\ RXU FXVWRPHUV PD\ H[SRVH XV WR ORVVHV $
IDLOXUHRUGHOD\WRUHFRYHUWKHH[SHFWHGYDOXHIURPVDOHRIFROODWHUDOVHFXULW\FRXOGH[SRVHXVWRDSRWHQWLDOORVV
$Q\VXFKORVVHVFRXOGDGYHUVHO\DIIHFWRXUILQDQFLDOFRQGLWLRQDQGUHVXOWVRIRSHUDWLRQV)XUWKHUPRUHHQIRUFLQJ
RXUOHJDOULJKWVE\OLWLJDWLQJDJDLQVWGHIDXOWLQJFXVWRPHUVLVJHQHUDOO\DVORZDQGSRWHQWLDOO\H[SHQVLYHSURFHVV
LQ,QGLD$FFRUGLQJO\LWPD\EHGLIILFXOWIRUXVWRUHFRYHUDPRXQWVRZHGE\GHIDXOWLQJFXVWRPHUVLQD WLPHO\
PDQQHURUDWDOO
:H PD\ DOVR EH DIIHFWHG E\ IDLOXUH RI RXU HPSOR\HHV WR FRPSO\ ZLWK LQWHUQDO SURFHGXUHV DQG LQDFFXUDWH
DSSUDLVDORIFUHGLWRUILQDQFLDOZRUWKRIRXUFXVWRPHUV)DLOXUHE\RXUHPSOR\HHVWRSURSHUO\DSSUDLVHWKHYDOXH
RIWKHFROODWHUDOSURYLGHVXVZLWKQRUHFRXUVHDJDLQVWWKHERUURZHUDQGWKHORDQVDQFWLRQPD\HYHQWXDOO\UHVXOWLQ
DEDGGHEWRQRXUERRNVRIDFFRXQWV,QWKHHYHQWZHDUHXQDEOHWRFKHFNWKHULVNVDULVLQJRXWRIVXFKODSVHVRXU
EXVLQHVVDQGUHVXOWVRIRSHUDWLRQVPD\EHDGYHUVHO\DIIHFWHG
2XUVLJQLILFDQWLQGHEWHGQHVVDQGWKHFRQGLWLRQVDQGUHVWULFWLRQVLPSRVHGE\RXUILQDQFLQJDUUDQJHPHQWV
FRXOGUHVWULFWRXUDELOLW\WRFRQGXFWRXUEXVLQHVVDQGRSHUDWLRQVLQWKHPDQQHUZHGHVLUH
$VRI6HSWHPEHUZHKDGRXWVWDQGLQJVHFXUHGGHEWRI `ODNKVDQGXQVHFXUHGGHEWRI `
ODNKV DQG ZH H[SHFW WR FRQWLQXH WR LQFXU DGGLWLRQDO LQGHEWHGQHVV LQ WKH IXWXUH 0RVW RI RXU
ERUURZLQJV DUH VHFXUHG E\ RXU LPPRYDEOH DQG RWKHU DVVHWV 2XU VLJQLILFDQW LQGHEWHGQHVV FRXOG KDYH VHYHUDO
LPSRUWDQWFRQVHTXHQFHVLQFOXGLQJEXWQRWOLPLWHGWRWKHIROORZLQJ
D SRUWLRQ RI RXU FDVK IORZ PD\ EH XVHG WRZDUGV UHSD\PHQW RI RXU H[LVWLQJ GHEW ZKLFK ZLOO UHGXFH WKH
DYDLODELOLW\RIRXUFDVK IORZ WRIXQG ZRUNLQJFDSLWDO FDSLWDOH[SHQGLWXUHVDFTXLVLWLRQV DQGRWKHUJHQHUDO
FRUSRUDWHUHTXLUHPHQWV
RXUDELOLW\WRREWDLQDGGLWLRQDOILQDQFLQJLQWKHIXWXUHDWUHDVRQDEOHWHUPVPD\EHUHVWULFWHGRURXUFRVWRI
ERUURZLQJV PD\ LQFUHDVH GXH WR VXGGHQ DGYHUVH PDUNHW FRQGLWLRQV LQFOXGLQJ GHFUHDVHG DYDLODELOLW\ RI
FUHGLWRUIOXFWXDWLRQVLQLQWHUHVWUDWHV
IOXFWXDWLRQVLQPDUNHWLQWHUHVWUDWHVPD\DIIHFWWKHFRVWRIRXUERUURZLQJVDVVRPHRIRXULQGHEWHGQHVVDUH
DWYDULDEOHLQWHUHVWUDWHVDQG
ZHPD\EHPRUHYXOQHUDEOHWRHFRQRPLFGRZQWXUQVPD\EHOLPLWHGLQRXUDELOLW\WRZLWKVWDQGFRPSHWLWLYH
SUHVVXUHV DQG PD\ KDYH UHGXFHG IOH[LELOLW\ LQ UHVSRQGLQJ WR FKDQJLQJ EXVLQHVV UHJXODWRU\ DQG HFRQRPLF
FRQGLWLRQV
)XUWKHU VRPH RI RXU ILQDQFLQJ DJUHHPHQWV DOVR LQFOXGH YDULRXV FRQGLWLRQV DQG FRYHQDQWV WKDW UHTXLUH XV WR
REWDLQ OHQGHU FRQVHQWV SULRU WR FDUU\LQJ RXW FHUWDLQ DFWLYLWLHV DQG HQWHULQJ LQWR FHUWDLQ WUDQVDFWLRQV )DLOXUH WR
PHHW WKHVH FRQGLWLRQV RU REWDLQ WKHVH FRQVHQWV FRXOG KDYH VLJQLILFDQW FRQVHTXHQFHV RQ RXU EXVLQHVV DQG
RSHUDWLRQV 6SHFLILFDOO\ XQGHU VRPH RI RXU ILQDQFLQJ DJUHHPHQWV ZH UHTXLUH DQG PD\ EH XQDEOH WR REWDLQ
FRQVHQWVIURPWKHUHOHYDQWOHQGHUVIRUDPRQJRWKHUVWKHIROORZLQJPDWWHUVHQWHULQJLQWRDQ\VFKHPHRIPHUJHU
RUUHFRQVWLWXWLRQVSLQQLQJRIIRIDEXVLQHVVGLYLVLRQ VHOOLQJRUWUDQVIHUULQJDOORUDVXEVWDQWLDOSRUWLRQRIRXU
DVVHWVPDNLQJDQ\FKDQJHLQRZQHUVKLSRUFRQWURORUFRQVWLWXWLRQRIRXU&RPSDQ\PDNLQJDPHQGPHQWVLQRXU
0HPRUDQGXP DQG $UWLFOHVRI $VVRFLDWLRQFUHDWLQJDQ\ IXUWKHUVHFXULW\ LQWHUHVWRQWKH DVVHWV XSRQ ZKLFKWKH
H[LVWLQJOHQGHUVKDYHDSULRUFKDUJHDQGUDLVLQJIXQGVE\ZD\RIDQ\IUHVKFDSLWDOLVVXH6RPHRIRXUILQDQFLQJ
DJUHHPHQWV DOVR W\SLFDOO\ FRQWDLQ FHUWDLQ ILQDQFLDO FRYHQDQWV LQFOXGLQJ WKH UHTXLUHPHQW WR PDLQWDLQ DPRQJ
RWKHUV VSHFLILHG GHEWWRHTXLW\ UDWLRV GHEWWRQHW ZRUWK UDWLRV RU 7LHU , WR 7LHU ,, FDSLWDO UDWLRV WKDW PD\ EH
KLJKHU WKDQ VWDWXWRU\ RU UHJXODWRU\ UHTXLUHPHQWV 7KHVH FRYHQDQWV YDU\ GHSHQGLQJ RQ WKH UHTXLUHPHQWV RI WKH
ILQDQFLDO LQVWLWXWLRQ H[WHQGLQJ WKH ORDQ DQG WKH FRQGLWLRQV QHJRWLDWHG XQGHU HDFK ILQDQFLQJ GRFXPHQW 6XFK
FRYHQDQWV PD\ UHVWULFW RU GHOD\ FHUWDLQ DFWLRQV RU LQLWLDWLYHV WKDW ZH PD\ SURSRVH WR WDNH IURP WLPH WR WLPH
)XUWKHUPRUHQRQFRPSOLDQFHZLWKDQ\RIWKHVHFRYHQDQWVDQGRIDQ\RIWKHRWKHUWHUPVDQGFRQGLWLRQVRIRXU
ILQDQFLQJDUUDQJHPHQWVFDQWULJJHUHYHQWVRIGHIDXOWXQGHUWKHVHDUUDQJHPHQWVZKLFKPD\FRPSHORXUOHQGHUV
WR LQWHU DOLD FDQFHO FUHGLW IDFLOLWLHV H[WHQGHG E\ WKHP UHFDOO GLVEXUVHPHQWV WKHUHRQ GHPDQG LPPHGLDWH
UHSD\PHQW RI WKH DPRXQWV RXWVWDQGLQJ XQGHU WKHVH IDFLOLWLHV OHY\ SHQDO LQWHUHVW WDNH SRVVHVVLRQ RI FKDUJHG
DVVHWV GRZQJUDGH WKHLU LQWHUQDO FUHGLW UDWLQJ RI RXU &RPSDQ\ DQG UHSRUW RXU &RPSDQ\ WR WKH 5%, &UHGLW
,QIRUPDWLRQ%XUHDXRI,QGLD/LPLWHGDVDFUHGLWGHIDXOWHU)XUWKHUPRUHDQ\VXFKEUHDFKPD\DOVRWULJJHUFURVV
GHIDXOWFODXVHVFRQWDLQHGLQVRPHRIRXUILQDQFLQJDUUDQJHPHQWVZKLFKPD\UHVXOWLQDQHYHQWRIGHIDXOWLQRXU
ORDQDUUDQJHPHQWVZLWKRWKHUOHQGHUV
$ IDLOXUHWRREVHUYHWKHFRYHQDQWVXQGHURXUILQDQFLQJDUUDQJHPHQWVRUWRREWDLQQHFHVVDU\FRQVHQWVUHTXLUHG
WKHUHXQGHU PD\ OHDG WR WKH WHUPLQDWLRQ RI RXU FUHGLW IDFLOLWLHV DFFHOHUDWLRQ RI DOO DPRXQWV GXH XQGHU VXFK
IDFLOLWLHVDQGWKHHQIRUFHPHQWRIDQ\VHFXULW\SURYLGHG$Q\DFFHOHUDWLRQRIDPRXQWVGXHXQGHUVXFKIDFLOLWLHV
PD\DOVRWULJJHUFURVVGHIDXOWSURYLVLRQVXQGHURXURWKHUILQDQFLQJDJUHHPHQWV,IWKHREOLJDWLRQVXQGHU DQ\RI
RXUILQDQFLQJGRFXPHQWVDUHDFFHOHUDWHGZHPD\KDYHWRGHGLFDWHDVXEVWDQWLDOSRUWLRQRIRXUFDVKIORZIURP
RSHUDWLRQVWRPDNHSD\PHQWVXQGHUVXFKILQDQFLQJGRFXPHQWVWKHUHE\UHGXFLQJWKHDYDLODELOLW\RIFDVKIRURXU
ZRUNLQJFDSLWDOUHTXLUHPHQWVDQGRWKHUJHQHUDOFRUSRUDWHSXUSRVHV
:HKDYHDOVRDYDLOHGYDULRXVZRUNLQJFDSLWDOGHPDQGDQGXQVHFXUHGORDQVWKDWDUHUHSD\DEOHXSRQGHPDQGRU
RQUHFHLYLQJQRWLFHIURPWKHUHVSHFWLYHOHQGHUV,IWKHVHOHQGHUVUHTXLUHXVWRUHSD\VXFKORDQVZHPD\KDYHWR
XVHRXUFDVKRQKDQGRUUDLVHIXQGVWRUHILQDQFHWKHORDQVZKLFKFRXOGDGYHUVHO\DIIHFWRXUEXVLQHVVUHVXOWVRI
RSHUDWLRQVRUILQDQFLDOFRQGLWLRQ)XUWKHUGXULQJDQ\SHULRGLQZKLFKZHDUHLQGHIDXOWZHPD\EHXQDEOHWR
UDLVH RU IDFH GLIILFXOWLHV UDLVLQJ IXUWKHU ILQDQFLQJ $Q\ RI WKHVH FLUFXPVWDQFHV FRXOG DGYHUVHO\ DIIHFW RXU
EXVLQHVVFUHGLWUDWLQJDQGILQDQFLDOFRQGLWLRQDQGUHVXOWVRIRSHUDWLRQV
,IRXUSURYLVLRQLQJUHTXLUHPHQWVDUHLQVXIILFLHQWWRFRYHURXUH[LVWLQJRUIXWXUHOHYHOVRIQRQSHUIRUPLQJ
ORDQVRULIIXWXUHUHJXODWLRQUHTXLUHVXVWRLQFUHDVHRXUSURYLVLRQVRXUDELOLW\WRUDLVHDGGLWLRQDOFDSLWDO
DQGGHEWIXQGVDVZHOODVRXUUHVXOWVRIRSHUDWLRQVDQGILQDQFLDOFRQGLWLRQFRXOGEHDGYHUVHO\DIIHFWHG
:H DGKHUH WR SURYLVLRQLQJ UHTXLUHPHQWV UHODWHG WR RXU ORDQ SRUWIROLR SXUVXDQW WR WKH 1RQ%DQNLQJ )LQDQFLDO
&RPSDQLHV 3UXGHQWLDO 1RUPV 5HVHUYH %DQN 'LUHFWLRQV DV DPHQGHG WKH ³3UXGHQWLDO 1RUPV´ 7KHVH
SURYLVLRQLQJ UHTXLUHPHQWV PD\ EH OHVV RQHURXV WKDQ WKH SURYLVLRQLQJ UHTXLUHPHQWV DSSOLFDEOH WR ILQDQFLDO
LQVWLWXWLRQV DQG EDQNV LQ RWKHU FRXQWULHV 7KH SURYLVLRQLQJ UHTXLUHPHQWV PD\ PRUHRYHU UHTXLUH VXEMHFWLYH
MXGJPHQWV RI RXU PDQDJHPHQW 2XU JURVV 13$V ZHUH ` ODNKV RU RI RXU WRWDO DVVHWV DV RI
6HSWHPEHUDVFRPSDUHGWR `ODNKVRURIRXUWRWDODVVHWVDVRI6HSWHPEHU
2XUSURYLVLRQRQ13$VZDV `ODNKVIRUWKHVL[PRQWKVHQGHG6HSWHPEHUDVFRPSDUHGWR `
ODNKV IRU WKH VL[ PRQWKV HQGHG 6HSWHPEHU 2XU JURVV 13$V ZHUH ` ODNKV RU
RIRXUWRWDODVVHWVDVRI0DUFKDVFRPSDUHGWR `ODNKVRURIRXUWRWDODVVHWVDV
RI0DUFK2XUSURYLVLRQRQ13$VZDV `ODNKVIRUWKHILQDQFLDO\HDUDVFRPSDUHGWR`
ODNKVIRUWKHILQDQFLDO\HDU
7KRXJK RXU RZQ H[LVWLQJ SURYLVLRQLQJ QRUPV DUH PRUH VWULQJHQW WKDQ WKRVH SUHVFULEHG E\ WKH 5%, RXU
SURYLVLRQLQJ UHTXLUHPHQWV PD\ EH LQDGHTXDWH WR FRYHU LQFUHDVHV LQ QRQSHUIRUPLQJ ORDQV 5HFHQWO\ WKH 5%,
DPHQGHGWKH3UXGHQWLDO1RUPVWRUHTXLUHWKH1%)&VWRPDNHDSURYLVLRQRILQUHVSHFWRIVWDQGDUGDVVHWV
DV ZHOO ZKLFK PD\ DGYHUVHO\ DIIHFW RXU UHVXOWV RI RSHUDWLRQ ,Q DGGLWLRQ WKH 7KRUDW &RPPLWWHH 5HSRUW KDV
UHFRPPHQGHGWKDWORDQVEHFODVVLILHGDVQRQSHUIRUPLQJLQDPDQQHUVLPLODUWRWKDWRIEDQNVFXUUHQWO\DIWHU
GD\VSDVWWKHGXHGDWHDVFRPSDUHGWRWKHFXUUHQWQRUPRIVL[PRQWKV,IWKLVUHFRPPHQGDWLRQLVDFFHSWHGE\WKH
5%,LW PD\LQFUHDVHRXUQRQSHUIRUPLQJORDQV,IRXUSURYLVLRQLQJ UHTXLUHPHQWVDUHLQVXIILFLHQWWRFRYHURXU
H[LVWLQJRUIXWXUHOHYHOVRIQRQSHUIRUPLQJORDQVRULIIXWXUHUHJXODWLRQUHTXLUHVXVWRLQFUHDVHRXUSURYLVLRQV
RXUDELOLW\WRUDLVHDGGLWLRQDOFDSLWDODQGGHEWIXQGVDVZHOODVRXUUHVXOWVRIRSHUDWLRQVDQGILQDQFLDOFRQGLWLRQ
FRXOGEHDGYHUVHO\DIIHFWHG
2XUORDQVWRVPDOOHQWHUSULVHVEXVLQHVVHVGHSHQGRQWKHSHUIRUPDQFHRIWKHVPDOOHQWHUSULVHVVHFWRULQ
,QGLD FRPSHWLWLRQ IURP SXEOLF VHFWRU EDQNV DQG ILQDQFLDO LQVWLWXWLRQV DQG RWKHU 1%)&V DQG
JRYHUQPHQWSROLFLHVDQGVWDWXWRU\DQGRUUHJXODWRU\UHIRUPVLQWKHVPDOOHQWHUSULVHVILQDQFHVHFWRU
$V RI 6HSWHPEHU RI RXU DVVHWV XQGHU PDQDJHPHQW ZHUH UHSUHVHQWHG E\ ORDQV WR WKH VPDOO
HQWHUSULVHVVHJPHQW,QUHFRJQLWLRQRIWKHFRQWULEXWLRQDQGYDVWSRWHQWLDORIWKHVPDOOHQWHUSULVHVILQDQFHVHFWRU
LQ WKH HFRQRP\ SURYLVLRQ RI DGHTXDWH FUHGLW WR WKLV VHFWRU FRQWLQXHV WR EH DQ LPSRUWDQW HOHPHQW RI EDQNLQJ
SROLF\ $FFRUGLQJ WR WKH 0LQLVWU\ RI )LQDQFH *RYHUQPHQW RI ,QGLD WKH VPDOO DQG PHGLXP HQWHUSULVHV VHFWRU
FRQWULEXWHV DERXW RI WRWDO PDQXIDFWXULQJ DQG RI WRWDO H[SRUWV DQG LV FUXFLDO WR ,QGLD
V HFRQRPLF
JURZWK HPSOR\PHQW JHQHUDWLRQ DQG HQWUHSUHQHXULDO GHYHORSPHQW 6RXUFH 0LQLVWU\ RI )LQDQFH 7KH
*RYHUQPHQWRI,QGLDKDVIURPWLPHWRWLPHWDNHQHFRQRPLFSROLF\LQLWLDWLYHVWRSURPRWHWKLVVHFWRUDQGHQKDQFH
FUHGLWWRVPDOODQGPHGLXPHQWHUSULVHV6RPHRIWKHLQLWLDWLYHVRIWKH*RYHUQPHQWWRVXSSRUWVPDOOHQWHUSULVH
ILQDQFLQJ LQFOXGH VHWWLQJ XS D FUHGLW JXDUDQWHH IXQG WUXVW IRU VPDOO LQGXVWULHV ULVN VKDULQJ IDFLOLWLHV YHQWXUH
FDSLWDOIXQGLQJDQGPLFURFUHGLW7KHVPDOOHQWHUSULVHVILQDQFHVHFWRUFXUUHQWO\LVFDWHUHGWRODUJHO\E\SXEOLF
VHFWRUEDQNVSXEOLFILQDQFLDOLQVWLWXWLRQVDQGORFDOXQRUJDQL]HGSULYDWHILQDQFLHUV
$Q\ FKDQJH LQ WKH UHJXODWRU\ UHTXLUHPHQWV LQ FRQQHFWLRQ ZLWK WKH VPDOO HQWHUSULVH ILQDQFH VHFWRU FKDQJH LQ
JRYHUQPHQWSROLFLHVVORZGRZQLQOLEHUDOL]DWLRQDQGUHIRUPVDIIHFWLQJWKHVHFWRUFRXOGDIIHFWWKHSHUIRUPDQFHRI
VPDOOHQWHUSULVHVDQGGHPDQGIRUVPDOOHQWHUSULVHILQDQFHDQGLQWXUQRXUEXVLQHVVDQGUHVXOWVRIRSHUDWLRQV
6LQFHZHKDQGOHKLJKYROXPHVRIFDVKDQGJROGMHZHOU\LQDGLVSHUVHGQHWZRUNRIEXVLQHVVRXWOHWVZHDUH
H[SRVHG WR RSHUDWLRQDO ULVNV LQFOXGLQJ HPSOR\HH QHJOLJHQFH IUDXG SHWW\ WKHIW EXUJODU\ DQG
HPEH]]OHPHQWZKLFKFRXOGKDUPRXUUHVXOWVRIRSHUDWLRQVDQGILQDQFLDOSRVLWLRQ
$VLJQLILFDQWSRUWLRQRIWKHFROOHFWLRQVIURPRXUFXVWRPHUVLVLQFDVK/DUJHFDVKFROOHFWLRQVH[SRVH XVWRWKH
ULVN RI WKHIW IUDXG PLVDSSURSULDWLRQ RU XQDXWKRUL]HG WUDQVDFWLRQV E\ HPSOR\HHV UHVSRQVLEOH IRU GHDOLQJ ZLWK
VXFK FDVK FROOHFWLRQV :H SULPDULO\ FDWHU WR FXVWRPHUV LQ UXUDO DQG VHPLXUEDQ PDUNHWV ZKLFK SUHVHQWV ULVNV
GXHWROLPLWDWLRQVLQLQIUDVWUXFWXUHDQGWHFKQRORJ\
:KLOHZHKDYHLPSOHPHQWHGWHFKQRORJ\WKDWWUDFNVRXUFDVKFROOHFWLRQVWDNHQUHTXLVLWHLQVXUDQFHSROLFLHVDQG
XQGHUWDNHQPHDVXUHVWRGHWHFWDQGSUHYHQWXQDXWKRUL]HGWUDQVDFWLRQVIUDXGRUPLVDSSURSULDWLRQWKLVPD\QRWEH
VXIILFLHQW WR SUHYHQW RU GHWHU VXFK DFWLYLWLHV LQ DOO FDVHV ZKLFK PD\ DGYHUVHO\ DIIHFW RXU RSHUDWLRQV DQG
SURILWDELOLW\)XUWKHUZHPD\EHVXEMHFWWRUHJXODWRU\RURWKHUSURFHHGLQJVLQFRQQHFWLRQZLWKDQ\XQDXWKRUL]HG
WUDQVDFWLRQVIUDXGRUPLVDSSURSULDWLRQE\RXUUHSUHVHQWDWLYHVDQGHPSOR\HHVZKLFKFRXOGDGYHUVHO\DIIHFWRXU
JRRGZLOO:HPD\DOVREHSDUW\WRFULPLQDOSURFHHGLQJVDQGFLYLOOLWLJDWLRQUHODWHGWRRXUFDVKFROOHFWLRQV
*LYHQ WKH KLJK YROXPH RI WUDQVDFWLRQV WKDW ZH SURFHVV FHUWDLQ LQVWDQFHV RI PRQH\ ODXQGHULQJ IUDXG DQG
PLVFRQGXFWE\RXUUHSUHVHQWDWLYHVRURIILFHUVPD\JRXQQRWLFHGIRUVRPHWLPHEHIRUHWKH\DUHGLVFRYHUHGDQG
VXFFHVVIXOO\UHFWLILHGRUWKHUHPD\EHGHILFLHQF\LQLPSOHPHQWDWLRQRI.<&SROLFLHVSUHVFULEHGE\5%,(YHQ
ZKHQZHGLVFRYHUIUDXGRUWKHIWDQGSXUVXHOHJDOUHFRXUVHRUILOHFODLPVZLWKRXULQVXUDQFHFDUULHUVWKHUHFDQEH
QRDVVXUDQFHWKDWZHZLOOUHFRYHUDQ\DPRXQWVORVWWKURXJKVXFKIUDXGRUWKHIW2XUGHSHQGHQFHRQDXWRPDWHG
V\VWHPVWRUHFRUGDQGSURFHVVWUDQVDFWLRQVPD\IXUWKHULQFUHDVHWKHULVNWKDWWHFKQLFDOV\VWHPIODZVRUHPSOR\HH
WDPSHULQJRUPDQLSXODWLRQRIVXFKV\VWHPVZLOOUHVXOWLQORVVHVWKDWDUHGLIILFXOWWRGHWHFWRUUHFWLI\
7KHLQDFFXUDWHRUIUDXGXOHQWDSSUDLVDORIJROGE\RXUSHUVRQQHOPD\DGYHUVHO\DIIHFWRXUEXVLQHVVDQG
ILQDQFLDOFRQGLWLRQ
7KHDFFXUDWHDSSUDLVDORIJROGSURYLGHGDVFROODWHUDOE\RXUFXVWRPHUVLVDVLJQLILFDQWIDFWRULQWKHVXFFHVVIXO
RSHUDWLRQ RI RXU ORDQV DJDLQVW JROG EXVLQHVV DQG VXFK DSSUDLVDO UHTXLUHV D VNLOOHG DQG UHOLDEOH ZRUNIRUFH
,QDFFXUDWHDSSUDLVDORIJROGE\RXUZRUNIRUFHPD\UHVXOWLQJROGEHLQJRYHUYDOXHGDQGWDNHQDVFROODWHUDOIRUD
ORDQWKDWLVKLJKHUWKDQWKHJROG¶VDFWXDOYDOXHZKLFKFRXOGDGYHUVHO\DIIHFWRXUUHSXWDWLRQDQGEXVLQHVV
)XUWKHUZHDUHVXEMHFWWRWKHULVNWKDWRXUJROGDSSUDLVHUVPD\HQJDJHLQIUDXGUHJDUGLQJWKHLUHVWLPDWLRQRIWKH
YDOXHRISOHGJHGJROG$Q\VXFKLQDFFXUDFLHVRUIUDXGLQUHODWLRQWRRXUDSSUDLVDORIJROGPD\DGYHUVHO\DIIHFW
RXUUHSXWDWLRQEXVLQHVVDQGILQDQFLDOFRQGLWLRQ
:HPD\QRWEHDEOHWRVXFFHVVIXOO\VXVWDLQRXUJURZWKVWUDWHJ\,QDELOLW\WRHIIHFWLYHO\PDQDJHDQ\RXU
JURZWKDQGUHODWHGLVVXHVPD\DGYHUVHO\DIIHFWRXUEXVLQHVVDQGILQDQFLDOFRQGLWLRQ
:HKDYHGHPRQVWUDWHGFRQVLVWHQWJURZWKLQRXUEXVLQHVVDQGLQRXUSURILWDELOLW\2XUDVVHWVXQGHUPDQDJHPHQW
KDYH LQFUHDVHG E\ D FRPSRXQGHG DQQXDO JURZWK UDWH RU &$*5 RI IURP ` ODNKV DV RI
0DUFKWR`ODNKVDVRI0DUFK2XUFDSLWDODGHTXDF\UDWLRDVRI0DUFK
FRPSXWHGRQWKHEDVLVRIDSSOLFDEOH5%,UHTXLUHPHQWVZDV FRPSDUHGWRWKH5%,VWLSXODWHGPLQLPXP
UHTXLUHPHQW RI 2XU 7LHU , FDSLWDO DV RI 6HSWHPEHU DQG 0DUFK ZDV ` ODNKVDQGODNKVUHVSHFWLYHO\2XU*URVV13$VDVDSHUFHQWDJHRI7RWDO/RDQ$VVHWVZHUH DQGDVRI6HSWHPEHUDQG0DUFKUHVSHFWLYHO\2XU1HW13$VDVDSHUFHQWDJHRI1HW
/RDQ $VVHWV ZDV DQG DV RI 6HSWHPEHU DQG 0DUFK UHVSHFWLYHO\ 2XU WRWDO
UHYHQXHLQFUHDVHGIURP `ODNKVIRUWKH ILQDQFLDO\HDU WR `ODNKVLQWKHILQDQFLDO
\HDUDWD&$*5RI2XUQHWSURILWDIWHUWD[LQFUHDVHGIURP `ODNKVLQWKHILQDQFLDO\HDU
WR`ODNKVLQWKHILQDQFLDO\HDUDWD&$*5RI
:HDOVRIDFHD QXPEHURIRSHUDWLRQDOULVNVLQH[HFXWLQJRXUJURZWKVWUDWHJ\:H KDYH H[SHULHQFHGJURZWKLQ
HDFKRIRXUOLQHVRIEXVLQHVV SDUWLFXODUO\ LQFRQQHFWLRQ ZLWKORDQVWRWKH VPDOOHQWHUSULVHVVHJPHQWDQGORDQV
DJDLQVW JROG ,Q DGGLWLRQ RXU EXVLQHVV RXWOHW QHWZRUN KDV H[SDQGHG VLJQLILFDQWO\ ZH DUH HQWHULQJ LQWR QHZ
VPDOOHUWRZQVDQGFLWLHVZLWKLQ,QGLDDQGZHDUHJUDGXDOO\LQWURGXFLQJDOORXUSURGXFWVLQHDFKRIRXUEXVLQHVV
RXWOHWV
2XU JURZWK VWUDWHJ\ LQFOXGHV JURZLQJ RXU ORDQ ERRN DQG H[SDQGLQJ RXU FXVWRPHU EDVH 7KHUH FDQ EH QR
DVVXUDQFH WKDW ZH ZLOO EH DEOH WR VXVWDLQ RXU JURZWK VWUDWHJ\ VXFFHVVIXOO\ RU WKDW ZH ZLOO EH DEOH WR H[SDQG
IXUWKHU RU GLYHUVLI\ RXU SURGXFW SRUWIROLR ,I ZH JURZ RXU ORDQ ERRN WRR TXLFNO\ RU IDLO WR PDNH SURSHU
DVVHVVPHQWVRIFUHGLWULVNVDVVRFLDWHGZLWKQHZERUURZHUVDKLJKHUSHUFHQWDJHRIRXUORDQVPD\EHFRPHQRQ
SHUIRUPLQJZKLFKZRXOGKDYHDQHJDWLYHLPSDFWRQWKHTXDOLW\RIRXUDVVHWVDQGRXUILQDQFLDOFRQGLWLRQ
2XUUDSLGJURZWKH[SRVHVXVWRDZLGHUDQJHRILQFUHDVHGULVNVLQFOXGLQJEXVLQHVVULVNVVXFKDVWKHSRVVLELOLW\
WKDWDQXPEHURIRXULPSDLUHGORDQVPD\JURZIDVWHUWKDQDQWLFLSDWHGDVZHOODVRSHUDWLRQDOULVNVIUDXGULVNV
DQGUHJXODWRU\DQGOHJDOULVNV0RUHRYHURXUDELOLW\WRVXVWDLQRXUUDWHRIJURZWKGHSHQGVVLJQLILFDQWO\XSRQRXU
DELOLW\WRPDQDJHNH\LVVXHVVXFKDVVHOHFWLQJDQGUHWDLQLQJNH\PDQDJHULDOSHUVRQQHOPDLQWDLQLQJHIIHFWLYHULVN
PDQDJHPHQW SROLFLHV FRQWLQXLQJ WR RIIHU SURGXFWV ZKLFK DUH UHOHYDQW WR RXU WDUJHW EDVH RI FXVWRPHUV
GHYHORSLQJ PDQDJHULDO H[SHULHQFH WR DGGUHVV HPHUJLQJ FKDOOHQJHV DQG HQVXULQJ D KLJK VWDQGDUG RI FXVWRPHU
VHUYLFH:HZLOOQHHGWRUHFUXLWQHZHPSOR\HHVZKRZLOOKDYHWREHWUDLQHGDQGLQWHJUDWHGLQWRRXURSHUDWLRQV
:H ZLOO DOVR KDYH WR WUDLQ H[LVWLQJ HPSOR\HHV WR DGKHUH SURSHUO\ WR LQWHUQDO FRQWUROV DQG ULVN PDQDJHPHQW
SURFHGXUHV)DLOXUHWRWUDLQRXUHPSOR\HHVSURSHUO\PD\UHVXOWLQDQLQFUHDVHLQHPSOR\HHDWWULWLRQUDWHVUHTXLUH
DGGLWLRQDOKLULQJHURGHWKHTXDOLW\RIFXVWRPHUVHUYLFHGLYHUWPDQDJHPHQWUHVRXUFHVLQFUHDVHRXU H[SRVXUHWR
KLJKULVNFUHGLWDQGLPSRVHVLJQLILFDQWFRVWVRQXV
:HKDYHOLPLWHGRSHUDWLQJH[SHULHQFHLQWKHKRXVLQJILQDQFHEXVLQHVVDQGDFFRUGLQJO\ZHPD\QRWEH
DEOHWRVXFFHVVIXOO\LPSOHPHQWRXUJURZWKVWUDWHJ\WRIRUD\LQWRWKHKRXVLQJILQDQFHEXVLQHVV
:H FRQGXFW KRXVLQJ ILQDQFH DFWLYLWLHV WKURXJK RXU 6XEVLGLDU\ 6KULUDP +RXVLQJ )LQDQFH /LPLWHG ZKLFK ZDV
UHJLVWHUHG ZLWK WKH 1DWLRQDO +RXVLQJ %DQN ZKROO\ RZQHG E\ WKH 5HVHUYH %DQN RI ,QGLD LQ :H WKXV
KDYHOLPLWHGH[SHULHQFHRSHUDWLQJLQ WKH KRXVLQJ ILQDQFHLQGXVWU\DQG6KULUDP+RXVLQJ)LQDQFH /LPLWHGKDV
LQFXUUHGDORVVDIWHUWD[DWLRQRI `ODNKV `ODNKVDQGSURILWRI `ODNKVIRUWKHILQDQFLDO\HDUV
DQGDQGIRUWKHVL[PRQWKVHQGHG6HSWHPEHUUHVSHFWLYHO\
:HFDQQRWDVVXUHWKDWRXUHQWU\LQWRWKHKRXVLQJILQDQFHEXVLQHVVZLOOSURGXFHIDYRUDEOHRUH[SHFWHGUHVXOWVDV
RXURYHUDOOSURILWDELOLW\DQGVXFFHVVZLOOEHVXEMHFWWRYDULRXVIDFWRUVLQFOXGLQJDPRQJRWKHUVRXULQH[SHULHQFH
LQ WKH KRXVLQJ ILQDQFH LQGXVWU\ DQG DELOLW\ WR FRPSHWH ZLWK EDQNV KRXVLQJ ILQDQFH FRPSDQLHV DQG RWKHU
ILQDQFLDOLQVWLWXWLRQVWKDWDUHDOUHDG\ZHOOHVWDEOLVKHGLQWKLVPDUNHWVHJPHQWDVZHOODVRXUDELOLW\WRHIIHFWLYHO\
DEVRUEDGGLWLRQDOFRVWVDVVRFLDWHGZLWKHQWHULQJWKHKRXVLQJILQDQFHLQGXVWU\
2XU KRXVLQJ ILQDQFH EXVLQHVV KDV UHTXLUHG DQG ZLOO FRQWLQXH WR UHTXLUH VLJQLILFDQW FDSLWDO LQYHVWPHQWV DQG
FRPPLWPHQWVRIWLPHIURPRXUVHQLRUPDQDJHPHQW)XUWKHUWKHUHFDQEHQRDVVXUDQFHWKDWRXUPDQDJHPHQWZLOO
EH DEOH WR GHYHORS WKH VNLOOV QHFHVVDU\ WR VXFFHVVIXOO\ PDQDJH WKHVH QHZ EXVLQHVV DUHDV 2XU LQDELOLW\ WR
HIIHFWLYHO\PDQDJHDQ\RIWKHVHLVVXHVFRXOGPDWHULDOO\DQGDGYHUVHO\DIIHFWRXUEXVLQHVVDQGLPSDFWRXUIXWXUH
ILQDQFLDOSHUIRUPDQFH
:H PD\ H[SHULHQFH GLIILFXOWLHV LQ H[SDQGLQJ RXU EXVLQHVV LQWR QHZ UHJLRQV DQG PDUNHWV LQ ,QGLD DQG
LQWURGXFLQJRXUFRPSOHWHUDQJHRISURGXFWVLQHDFKRIRXUEXVLQHVVRXWOHWVZKLFKPD\DGYHUVHO\DIIHFW
RXUEXVLQHVVUHVXOWVRIRSHUDWLRQVDQGILQDQFLDOFRQGLWLRQ
$VSDUWRIRXUJURZWKVWUDWHJ\ZHFRQWLQXHWRHYDOXDWHDWWUDFWLYHJURZWKRSSRUWXQLWLHVWRH[SDQGRXUEXVLQHVV
LQWR QHZ UHJLRQV DQG PDUNHWV LQ ,QGLD )DFWRUV VXFK DV FRPSHWLWLRQ FXOWXUH UHJXODWRU\ UHJLPHV EXVLQHVV
SUDFWLFHV DQG FXVWRPV DQG FXVWRPHU UHTXLUHPHQWV LQ WKHVH QHZ PDUNHWV PD\ GLIIHU IURP WKRVH LQ RXU FXUUHQW
PDUNHWVDQGRXUH[SHULHQFHLQRXUFXUUHQWPDUNHWVPD\QRWEHDSSOLFDEOHWRWKHVHQHZPDUNHWV,QDGGLWLRQDV
ZH HQWHU QHZ PDUNHWV DQG JHRJUDSKLFDO UHJLRQV ZH DUH OLNHO\ WR FRPSHWH QRW RQO\ ZLWK RWKHU EDQNV DQG
ILQDQFLDOLQVWLWXWLRQVEXWDOVRWKHORFDOXQRUJDQL]HGRUVHPLRUJDQL]HGSULYDWHILQDQFLHUVZKRDUHPRUHIDPLOLDU
ZLWKORFDOUHJXODWLRQVEXVLQHVVSUDFWLFHVDQGFXVWRPVDQGKDYHVWURQJHUUHODWLRQVKLSVZLWKFXVWRPHUV
$VDSDUWRIRXUJURZWKVWUDWHJ\ZHLQWHQGWRHVWDEOLVKRXURSHUDWLRQVWKURXJKQHZEXVLQHVVRXWOHWVLQFLWLHVDQG
WRZQVZKHUHZHKLVWRULFDOO\KDGUHODWLYHO\OLPLWHGRSHUDWLRQVVXFKDVLQHDVWHUQDQGQRUWKHUQSDUWVRI,QGLDDQG
WR IXUWKHU FRQVROLGDWH RXU SRVLWLRQ DQG RSHUDWLRQV LQ ZHVWHUQ DQG VRXWKHUQ SDUWV RI ,QGLD :H DOVR LQWHQG WR
JUDGXDOO\LQWURGXFHRXUHQWLUHUDQJHRISURGXFWRIIHULQJVDWHDFKRIRXUH[LVWLQJEXVLQHVVRXWOHWVDFURVV,QGLD
2XU EXVLQHVV PD\ EH H[SRVHG WR YDULRXV DGGLWLRQDO FKDOOHQJHV LQFOXGLQJ REWDLQLQJ QHFHVVDU\ JRYHUQPHQWDO
DSSURYDOVLGHQWLI\LQJDQGFROODERUDWLQJZLWKORFDOEXVLQHVVDQGSDUWQHUVZLWKZKRPZHPD\KDYHQRSUHYLRXV
ZRUNLQJUHODWLRQVKLSVXFFHVVIXOO\JDXJLQJPDUNHWFRQGLWLRQVLQORFDOPDUNHWVZLWKZKLFKZHKDYHQRSUHYLRXV
IDPLOLDULW\ DWWUDFWLQJ SRWHQWLDO FXVWRPHUV LQ D PDUNHW LQ ZKLFK ZH GR QRW KDYH VLJQLILFDQW H[SHULHQFH RU
YLVLELOLW\ EHLQJ VXVFHSWLEOH WR ORFDO WD[DWLRQ LQ DGGLWLRQDO JHRJUDSKLFDO DUHDV RI ,QGLD DQG DGDSWLQJ RXU
PDUNHWLQJ VWUDWHJ\ DQG RSHUDWLRQV WR GLIIHUHQW UHJLRQV RI ,QGLD LQ ZKLFK GLIIHUHQW ODQJXDJHV DUH VSRNHQ 2XU
LQDELOLW\WRH[SDQGRXUFXUUHQWRSHUDWLRQVPD\DGYHUVHO\DIIHFWRXUEXVLQHVVSURVSHFWVILQDQFLDOFRQGLWLRQDQG
UHVXOWVRIRSHUDWLRQV
$Q\DGYHUVHGHYHORSPHQWVLQWKHQHZDQGSUHRZQHGWZRZKHHOHURUYHKLFOHILQDQFLQJLQGXVWULHVFRXOG
DGYHUVHO\DIIHFWRXUEXVLQHVVUHVXOWVRIRSHUDWLRQVDQGILQDQFLDOFRQGLWLRQ
:HSURYLGHILQDQFLQJIRUDPRQJRWKHUWKLQJVQHZDQGSUHRZQHGWZRZKHHOHUVDQGYHKLFOHVWRFXVWRPHUVLQ
UXUDODQGVHPLXUEDQPDUNHWVDFFRXQWLQJIRUDQGRIRXUWRWDODVVHWVXQGHUPDQDJHPHQWIRU
WKH VL[ PRQWKVHQGHG6HSWHPEHUDQGIRU ILQDQFLDO\HDUVDQGDVRI0DUFKDQG
UHVSHFWLYHO\2XUDVVHWSRUWIROLRVKDYHDQGZLOOOLNHO\FRQWLQXHWRKDYHDVLJQLILFDQWFRQFHQWUDWLRQRIILQDQFLQJ
DUUDQJHPHQWVIRUWZRZKHHOHUVDQGYHKLFOHVLQUXUDODQGVHPLXUEDQPDUNHWV7KHVXFFHVVRIRXUEXVLQHVVWKXV
GHSHQGV RQ YDULRXV IDFWRUV WKDW DIIHFW FXVWRPHUV IRU VXFK WZRZKHHOHUV DQG YHKLFOHV LQFOXGLQJ D WKH
PDFURHFRQRPLF HQYLURQPHQW LQ ,QGLD E WKH GHPDQG IRU WUDQVSRUWDWLRQ DQG F FKDQJHV LQ UHJXODWLRQV DQG
SROLFLHVLQFRQQHFWLRQZLWKWZRZKHHOHUVDQGYHKLFOHV$Q\GHFOLQHLQVDOHVRIRULQGHPDQGIRUILQDQFLQJIRU
WZRZKHHOHUVRUYHKLFOHVFRXOGDGYHUVHO\DIIHFWRXUEXVLQHVVUHVXOWVRIRSHUDWLRQVDQGILQDQFLDOFRQGLWLRQ
:HGHSHQGRQEXVLQHVVHVRSHUDWLQJXQGHUWKH³6KULUDP&KLWV´EUDQGQDPHIRUVXEVWDQWLDOO\DOORIRXU
FXVWRPHUVLQRXUVPDOOHQWHUSULVHVHJPHQW
,Q RXU VPDOO HQWHUSULVH VHJPHQW VXEVWDQWLDOO\ RXU HQWLUH FXVWRPHU EDVH KDV EHHQ UHIHUUHG WR XV E\ HQWLWLHV
RSHUDWLQJ XQGHU WKH ³6KULUDP &KLWV´ EUDQG QDPH :H KDYH DOVR VRXUFHG FXVWRPHUV IRU SHUVRQDO ORDQV IURP
EXVLQHVVHVRSHUDWLQJXQGHUWKH³6KULUDP&KLWV´EUDQGQDPH$FFRUGLQJO\RXUEXVLQHVVGHSHQGVVXEVWDQWLDOO\RQ
WKH VXFFHVV RI WKH GLVWULEXWLRQ DQG PDUNHWLQJ QHWZRUN DQG EUDQG HTXLW\ RI WKH EXVLQHVVHV RSHUDWLQJ XQGHU WKH
³6KULUDP&KLWV´EUDQGQDPH$Q\LQDELOLW\E\WKHVHEXVLQHVVHVWR PDLQWDLQDQGH[SDQGWKHLURZQGLVWULEXWLRQ
QHWZRUNV LQFUHDVH WKHLU VDOHV RU FRQWLQXH WR DQWLFLSDWH DQG UHVSRQG HIIHFWLYHO\ WR FKDOOHQJHV SRVHG E\ WKH
,QGLDQ&KLWIXQGLQGXVWU\FRXOGDGYHUVHO\DIIHFWRXUEXVLQHVVUHVXOWVRIRSHUDWLRQVDQGILQDQFLDOFRQGLWLRQ
$ODUJHQXPEHURIRXUEXVLQHVVRXWOHWVDUHORFDWHGLQVRXWK,QGLDDQGDQ\GRZQWXUQLQWKHHFRQRP\LQ
WKH VWDWHV LQ ,QGLD ZKHUH ZH RSHUDWH RU DQ\ FKDQJH LQ FRQVXPHU SUHIHUHQFHV LQ WKDW UHJLRQ FRXOG
DGYHUVHO\DIIHFWRXUUHVXOWVRIRSHUDWLRQVDQGILQDQFLDOFRQGLWLRQ
:H KDYH D VWURQJ FRQFHQWUDWLRQ RI RXU EXVLQHVV LQ VRXWK ,QGLD ZLWK RI RXU EXVLQHVV RXWOHWV DV RI
6HSWHPEHUORFDWHGLQWKHVWDWHVRI7DPLO1DGX$QGKUD3UDGHVK.HUDODDQG.DUQDWDND$Q\DGYHUVH
FKDQJHLQWKHSROLWLFDOUHJXODWRU\DQGRUHFRQRPLFHQYLURQPHQWLQWKHVHVWDWHVRUDQ\XQIDYRUDEOHFKDQJHVLQ
WKH UHJXODWRU\ DQG SROLF\ UHJLPH LQ WKH VDLG UHJLRQ FRXOG DGYHUVHO\ DIIHFW RXU PDQXIDFWXULQJ RSHUDWLRQV
ILQDQFLDOFRQGLWLRQDQGRUSURILWDELOLW\)XUWKHUDQ\FKDQJHVLQFRQVXPHUSUHIHUHQFHVLQWKLVUHJLRQFRXOGDOVR
DIIHFWRXURSHUDWLRQVDQGSURILWDELOLW\
$Q\GRZQJUDGHLQRXUFUHGLWUDWLQJVFRXOGLQFUHDVHERUURZLQJFRVWVDQGDGYHUVHO\DIIHFWRXUDFFHVVWR
FDSLWDODQG OHQGLQJPDUNHWVDQGFRXOGDOVRDIIHFWRXUUHSXWDWLRQ LQWHUHVWPDUJLQVEXVLQHVVUHVXOWVRI
RSHUDWLRQVDQGILQDQFLDOFRQGLWLRQ
2XUFRVWDQGDYDLODELOLW\RIFDSLWDOGHSHQGVLQSDUWRQRXUVKRUWWHUPDQGORQJWHUPFUHGLWUDWLQJV&UHGLWUDWLQJV
UHIOHFWWKHRSLQLRQVRIUDWLQJVDJHQFLHVRQRXUILQDQFLDOVWUHQJWKRSHUDWLQJSHUIRUPDQFHVWUDWHJLFSRVLWLRQDQG
DELOLW\WRPHHWRXUREOLJDWLRQV&HUWDLQIDFWRUVWKDWLQIOXHQFHRXUFUHGLWUDWLQJVPD\EHRXWVLGHRIRXUFRQWURO
)RUH[DPSOHRXUFUHGLWUDWLQJVPD\GHSHQGRQWKHDVVHWTXDOLW\ILQDQFLDOSHUIRUPDQFHDQGEXVLQHVVSURVSHFWV
RI WKH 6KULUDP *URXS )RU IXUWKHU GHWDLOV RI RXU FUHGLW UDWLQJV SOHDVH VHH VHFWLRQ WLWOHG ³%XVLQHVV ±&UHGLW
5DWLQJ´RQSDJH
$Q\ GRZQJUDGH LQ RXU FUHGLW UDWLQJV FRXOG LQFUHDVH ERUURZLQJ FRVWV DQG DGYHUVHO\ DIIHFW RXU UHSXWDWLRQ DQG
DFFHVVWRFDSLWDODQGGHEWPDUNHWVZKLFKFRXOGLQWXUQDGYHUVHO\DIIHFWRXULQWHUHVWPDUJLQVRXUEXVLQHVVDQG
UHVXOWV RI RSHUDWLRQV ,Q DGGLWLRQ DQ\ GRZQJUDGH LQ RXU FUHGLW UDWLQJV FRXOG LQFUHDVH WKH SUREDELOLW\ WKDW RXU
OHQGHUVLPSRVHDGGLWLRQDOWHUPVDQGFRQGLWLRQVWRDQ\ILQDQFLQJRUUHILQDQFLQJDUUDQJHPHQWVZHHQWHULQWRLQWKH
IXWXUH
,IZHDUHXQDEOHWRPDQDJHWKHOHYHORI1RQ3HUIRUPLQJ$VVHWV13$VLQRXUORDQDVVHWVRXUILQDQFLDO
SRVLWLRQDQGUHVXOWVRIRSHUDWLRQVPD\VXIIHU
2XUJURVV13$VDVDSHUFHQWDJHRIWRWDOORDQDVVHWVZHUHDQGDVRI6HSWHPEHU
0DUFKDQGUHVSHFWLYHO\ZKLOHRXUQHW13$VDVDSHUFHQWDJHRIQHWORDQDVVHWVZHUH
DQGDVRI6HSWHPEHU0DUFKDQGUHVSHFWLYHO\:H
FDQQRW EH VXUH WKDW ZH ZLOO EH DEOH WR LPSURYH RXU FROOHFWLRQV DQG UHFRYHULHV LQ UHODWLRQ WR RXU 13$V RU
RWKHUZLVHDGHTXDWHO\FRQWURORXUOHYHORI13$VLQWKHIXWXUH0RUHRYHUDVRXUORDQSRUWIROLRPDWXUHVZHPD\
H[SHULHQFHJUHDWHUGHIDXOWVLQSULQFLSDODQGRULQWHUHVWUHSD\PHQWV7KXVLIZHDUHQRWDEOHWRFRQWURORUUHGXFH
RXUOHYHORI13$VWKHRYHUDOOTXDOLW\RIRXUORDQSRUWIROLRPD\GHWHULRUDWHDQGRXUUHVXOWVRIRSHUDWLRQVPD\EH
DGYHUVHO\ DIIHFWHG )XUWKHUPRUH RXU FXUUHQW SURYLVLRQV PD\ QRW EH DGHTXDWH ZKHQ FRPSDUHG WR WKH ORDQ
SRUWIROLRV RI RWKHU ILQDQFLDO LQVWLWXWLRQV 7KHUH DOVR FDQ EH QR DVVXUDQFH WKDW WKHUH ZLOO EH QR IXUWKHU
GHWHULRUDWLRQLQRXUSURYLVLRQLQJFRYHUDJHDVDSHUFHQWDJHRIJURVV13$VRURWKHUZLVHRUWKDWWKHSHUFHQWDJHRI
13$VWKDWZHZLOOEHDEOHWRUHFRYHUZLOOEHVLPLODUWRRXUSDVWH[SHULHQFHRIUHFRYHULHVRI13$V,QWKHHYHQW
RIDQ\IXUWKHUGHWHULRUDWLRQLQRXU13$SRUWIROLRWKHUHFRXOGEHDQHYHQJUHDWHUDGYHUVHLPSDFWRQRXUUHVXOWVRI
RSHUDWLRQV
2XUFXVWRPHUEDVHFRPSULVHVPRVWO\LQGLYLGXDOERUURZHUVZKRJHQHUDOO\DUHPRUHOLNHO\WREHDIIHFWHG
E\ GHFOLQLQJ HFRQRPLF FRQGLWLRQV WKDQ ODUJH FRUSRUDWH ERUURZHUV $Q\ GHFOLQH LQ WKH UHSD\PHQW
FDSDELOLWLHVRIRXUERUURZHUVPD\UHVXOWLQLQFUHDVHLQGHIDXOWVWKHUHE\DGYHUVHO\DIIHFWLQJRXUEXVLQHVV
DQGILQDQFLDOFRQGLWLRQ
,QGLYLGXDOERUURZHUVJHQHUDOO\DUHOHVVILQDQFLDOO\UHVLOLHQWWKDQODUJHFRUSRUDWHERUURZHUVDQGDVDUHVXOWWKH\
FDQ EH PRUH DGYHUVHO\ DIIHFWHG E\ GHFOLQLQJ HFRQRPLF FRQGLWLRQV ,Q DGGLWLRQ D VLJQLILFDQW PDMRULW\ RI RXU
FXVWRPHUEDVHEHORQJVWRWKHORZWRPLGGOHLQFRPHJURXSZKRPD\EHPRUHOLNHO\WREHDIIHFWHGE\GHFOLQLQJ
HFRQRPLFFRQGLWLRQVWKDQODUJHFRUSRUDWHERUURZHUV
$Q\ GHFOLQH LQ WKH HFRQRPLF FRQGLWLRQV PD\ LPSDFW WKH UHSD\PHQW FDSDELOLWLHV RI RXU ERUURZHUV ZKLFK PD\
UHVXOWLQLQFUHDVHLQGHIDXOWVWKHUHE\DGYHUVHO\DIIHFWLQJRXUEXVLQHVVDQGILQDQFLDOFRQGLWLRQ
$GHFOLQHLQRXUFDSLWDODGHTXDF\UDWLRFRXOGUHVWULFWRXUIXWXUHEXVLQHVVJURZWK
3XUVXDQWWRWKH1RQ%DQNLQJ)LQDQFLDO'HSRVLW$FFHSWLQJRU+ROGLQJ&RPSDQLHV3UXGHQWLDO1RUPVDQG
WKH5%,QRWLILFDWLRQGDWHG)HEUXDU\DPHQGHGZHDUHUHTXLUHGWRPDLQWDLQDFDSLWDODGHTXDF\UDWLRRI
DWOHDVWRIRXUULVNZHLJKWHGDVVHWVRIRXUEDODQFHVKHHWDQGRIULVNDGMXVWHGYDOXHRIRIIEDODQFHVKHHW
LWHPVFRQVLVWLQJRIDWOHDVWDVPXFK7LHU,FDSLWDODV7LHU,,FDSLWDORQDQRQJRLQJEDVLV2XUFDSLWDODGHTXDF\
UDWLRZDVDVRI0DUFKZLWK7LHU,FDSLWDOFRPSULVLQJ,IZHFRQWLQXHWRJURZRXUORDQ
SRUWIROLRDQGDVVHWEDVHZHZLOOEHUHTXLUHGWRUDLVHDGGLWLRQDO7LHU,DQG7LHU,,FDSLWDOLQRUGHUWRFRQWLQXHWR
PHHW DSSOLFDEOH FDSLWDO DGHTXDF\ UDWLRV ZLWK UHVSHFW WR RXU EXVLQHVV 0RUHRYHU LPSOHPHQWDWLRQ RI WKH
UHFRPPHQGDWLRQVVHWRXWLQWKH7KRUDW&RPPLWWHH5HSRUWPD\UHTXLUHHDFK1%)&LQFOXGLQJRXU&RPSDQ\WR
PDLQWDLQ 7LHU , FDSLWDO RI DW OHDVW 7KHUH FDQ EH QR DVVXUDQFH WKDW ZH ZLOO EH DEOH WR UDLVH DGHTXDWH
DGGLWLRQDO FDSLWDO LQ WKH IXWXUH RQ WHUPV IDYRUDEOH WR XV RU DW DOO ZKLFK FRXOG UHVXOW LQ QRQFRPSOLDQFH ZLWK
DSSOLFDEOHFDSLWDODGHTXDF\UDWLRVDQGPD\DGYHUVHO\DIIHFWWKHJURZWKRIRXUEXVLQHVV
:HDQGRXU'LUHFWRUVDUHLQYROYHGLQFHUWDLQOHJDODQGRWKHUSURFHHGLQJVWKDWLIGHWHUPLQHGDJDLQVWXV
FRXOGKDYHDPDWHULDODGYHUVHHIIHFWRQRXUILQDQFLDOFRQGLWLRQDQGUHVXOWVRIRSHUDWLRQV
:HDQGRXU'LUHFWRUVDUHFXUUHQWO\LQYROYHGLQ FHUWDLQ OHJDOSURFHHGLQJVDULVLQJLQWKHRUGLQDU\FRXUVHRIRXU
EXVLQHVV7KHVHSURFHHGLQJVDUHSHQGLQJDWGLIIHUHQWOHYHOVRIDGMXGLFDWLRQEHIRUHYDULRXVFRXUWVDQGWULEXQDOV
SULPDULO\UHODWLQJWRFLYLOVXLWVDQGWD[GLVSXWHV$QDGYHUVHGHFLVLRQLQWKHVHSURFHHGLQJVFRXOGPDWHULDOO\DQG
DGYHUVHO\DIIHFWRXUEXVLQHVVILQDQFLDOFRQGLWLRQDQGUHVXOWVRIRSHUDWLRQV
)RUIXUWKHUGHWDLOVRIPDWHULDOOHJDOSURFHHGLQJVLQYROYLQJRXU&RPSDQ\SOHDVHVHHVHFWLRQWLWOHG³2XWVWDQGLQJ
/LWLJDWLRQDQG0DWHULDO'HYHORSPHQWV´RQSDJH
:H PD\ QRW EH DEOH WR PDLQWDLQ RXU FXUUHQW OHYHOV RI SURILWDELOLW\ GXH WR LQFUHDVHG FRVWV RU UHGXFHG
VSUHDGV
2XUEXVLQHVVLQYROYHVDODUJHYROXPHRIVPDOOWLFNHWVL]HORDQVDQGUHTXLUHVPDQXDORSHUDWLRQDOVXSSRUW+HQFH
ZHUHTXLUHGHGLFDWHGVWDIIIRUSURYLGLQJRXUVHUYLFHV ,QRUGHUWRJURZRXUSRUWIROLRRXUH[SDQGHGRSHUDWLRQV
ZLOO DOVR LQFUHDVH RXU PDQSRZHU UHTXLUHPHQWV DQG SXVK XS RSHUDWLRQDO FRVWV 2XU JURZWK ZLOO DOVR UHTXLUH D
UHODWLYHO\KLJKHUJURVVVSUHDGRUPDUJLQRQWKHOHQGLQJSURGXFWVZHRIIHULQRUGHUWRPDLQWDLQSURILWDELOLW\,I
WKH JURVV VSUHDG RQ RXU OHQGLQJ SURGXFWV ZHUH WR UHGXFH WKHUH FDQ EH QR DVVXUDQFH WKDW ZH ZLOO EH DEOH WR
PDLQWDLQRXUFXUUHQWOHYHOVRISURILWDELOLW\ZKLFKFRXOGDGYHUVHO\DIIHFWRXUUHVXOWVRIRSHUDWLRQV
6\VWHP IDLOXUHV RU LQDGHTXDF\ DQG VHFXULW\ EUHDFKHV LQ FRPSXWHU V\VWHPV PD\ DGYHUVHO\ DIIHFW RXU
EXVLQHVV
2XUEXVLQHVVLVLQFUHDVLQJO\GHSHQGHQWRQRXUDELOLW\WRSURFHVVRQDGDLO\EDVLVDODUJHQXPEHURIWUDQVDFWLRQV
2XUILQDQFLDODFFRXQWLQJRURWKHUGDWDSURFHVVLQJV\VWHPVPD\IDLOWRRSHUDWHDGHTXDWHO\RUEHFRPHGLVDEOHGDV
D UHVXOW RI HYHQWV WKDW DUH ZKROO\ RU SDUWLDOO\ EH\RQG RXU FRQWURO LQFOXGLQJ D GLVUXSWLRQ RI HOHFWULFDO RU
FRPPXQLFDWLRQVVHUYLFHV
2XU DELOLW\ WR RSHUDWH DQG UHPDLQ FRPSHWLWLYH ZLOO GHSHQG LQ SDUW RQ RXU DELOLW\ WR PDLQWDLQ DQG XSJUDGH RXU
LQIRUPDWLRQWHFKQRORJ\V\VWHPVRQDWLPHO\DQGFRVWHIIHFWLYHEDVLV7KHLQIRUPDWLRQDYDLODEOHWRDQGUHFHLYHG
E\RXUPDQDJHPHQWWKURXJKRXUH[LVWLQJV\VWHPVPD\QRWEHWLPHO\DQGVXIILFLHQWWRPDQDJHULVNVRUWRSODQIRU
DQG UHVSRQG WR FKDQJHV LQ PDUNHW FRQGLWLRQV DQG RWKHU GHYHORSPHQWV LQ RXU RSHUDWLRQV :H PD\ H[SHULHQFH
GLIILFXOWLHVLQXSJUDGLQJGHYHORSLQJDQGH[SDQGLQJRXUV\VWHPVTXLFNO\HQRXJKWRDFFRPPRGDWHRXUJURZLQJ
FXVWRPHUEDVHDQGUDQJHRISURGXFWV
2XU RSHUDWLRQV DOVR UHO\ RQ WKH VHFXUH SURFHVVLQJ VWRUDJH DQG WUDQVPLVVLRQ RI FRQILGHQWLDO DQG RWKHU
LQIRUPDWLRQ LQ RXU FRPSXWHU V\VWHPV DQG QHWZRUNV 2XU FRPSXWHU V\VWHPV VRIWZDUH DQG QHWZRUNV PD\ EH
YXOQHUDEOH WR XQDXWKRUL]HG DFFHVV FRPSXWHU YLUXVHV RU RWKHU PDOLFLRXV FRGH DQG RWKHU HYHQWV WKDW FRXOG
FRPSURPLVHGDWDLQWHJULW\DQGVHFXULW\
$Q\ IDLOXUH WR HIIHFWLYHO\ PDLQWDLQ RU LPSURYH RU XSJUDGH RXU PDQDJHPHQW LQIRUPDWLRQ V\VWHPV LQ D WLPHO\
PDQQHUFRXOGPDWHULDOO\DQGDGYHUVHO\DIIHFWRXUFRPSHWLWLYHQHVVILQDQFLDOSRVLWLRQDQGUHVXOWVRIRSHUDWLRQV
0RUHRYHULIDQ\RIWKHVHV\VWHPVGRQRWRSHUDWHSURSHUO\RUDUHGLVDEOHGRULIWKHUHDUHRWKHUVKRUWFRPLQJVRU
IDLOXUHVLQRXULQWHUQDOSURFHVVHVRUV\VWHPVLWFRXOGDIIHFWRXURSHUDWLRQVRUUHVXOWLQILQDQFLDOORVVGLVUXSWLRQ
RI RXU EXVLQHVVHV UHJXODWRU\ LQWHUYHQWLRQ RU GDPDJH WR RXU UHSXWDWLRQ ,Q DGGLWLRQ RXU DELOLW\ WR FRQGXFW
EXVLQHVV PD\EHDGYHUVHO\LPSDFWHGE\DGLVUXSWLRQLQWKHLQIUDVWUXFWXUH WKDW VXSSRUWV RXUEXVLQHVVHVDQGWKH
ORFDOLWLHVLQZKLFKZHDUHORFDWHG
$VSDUWRIRXUEXVLQHVVVWUDWHJ\ZHKDYHLQWKHSDVWDVVLJQHGDVXEVWDQWLDOSRUWLRQRIRXUORDQVWREDQNV
DQGRWKHULQVWLWXWLRQV$Q\GHWHULRUDWLRQLQWKHSHUIRUPDQFHRIDQ\SRRORIUHFHLYDEOHVDVVLJQHGWREDQNV
DQGRWKHULQVWLWXWLRQVPD\DGYHUVHO\LPSDFWRXUUHVXOWVRIRSHUDWLRQVDQGILQDQFLDOFRQGLWLRQ
:HKDYHLQWKHSDVWDVVLJQHGUHFHLYDEOHVIURPRXUORDQSRUWIROLRWREDQNVDQGRWKHULQVWLWXWLRQVDVRQHRIRXU
DYHQXHVRIVHFXULQJDQGPDQDJLQJIXQGLQJDQGOLTXLGLW\7KHVHDVVLJQPHQWWUDQVDFWLRQVZHUHFRQGXFWHGRQWKH
EDVLV RI RXU LQWHUQDO HVWLPDWHV RI RXU IXQGLQJ UHTXLUHPHQWV ZKLFK PD\ YDU\ IURP WLPH WR WLPH )RU WKH VL[
PRQWKV HQGHG 6HSWHPEHU DQG ILQDQFLDO \HDUV DQG WKH &RPSDQ\ DVVLJQHG ORDQ
UHFHLYDEOHV DJJUHJDWLQJ ` ODNKV ` ODNKV ` ODNKV DQG ` ODNKV
UHVSHFWLYHO\
,QWKHSDVWWKHFRXQWHUSDUWLHVWRUHFHLYDEOHVDVVLJQPHQWWUDQVDFWLRQVUHTXLUHGXVWRSURYLGHFUHGLWHQKDQFHPHQW
WKURXJK IL[HG GHSRVLWV RU FRUSRUDWH JXDUDQWHHV :H KDG FUHGLW HQKDQFHPHQW RXWVWDQGLQJ RI ` ODNKV
DQG `ODNKVDVRI 6HSWHPEHUDQG 0DUFKUHVSHFWLYHO\,IDFRXQWHUSDUW\GRHVQRW
UHDOL]H WKH UHFHLYDEOHV GXH XQGHU VXFK ORDQ DVVHWV LW FRXOG FODLP UHFRXUVH WKURXJK VXFK FUHGLW HQKDQFHPHQW
ZKLFK FRXOG DGYHUVHO\ DIIHFW RXU UHVXOWV RI RSHUDWLRQV DQG ILQDQFLDO FRQGLWLRQ 7KH 5%, LVVXHG UHYLVHG
µ*XLGHOLQHVRQ6HFXULWLVDWLRQRI6WDQGDUG$VVHWV¶WKH³5HYLVHG6HFXULWLVDWLRQ*XLGHOLQHV´WREDQNVZKLFKKDYH
EHHQ H[WHQGHG WR 1%)&V ZLWK HIIHFW IURP $XJXVW 7KH 5HYLVHG *XLGHOLQHV LPSRVH D UHVWULFWLRQ RQ
RIIHULQJRIFUHGLWHQKDQFHPHQWLQDQ\ IRUPDQGOLTXLGLW\IDFLOLWLHV LQWKHFDVHRIORDQWUDQVIHUVWKURXJKGLUHFW
DVVLJQPHQW RI FDVK IORZV :H EHOLHYH WKDW WKLV GHYHORSPHQW KDV GLVFRXUDJHG LQYHVWRUV IURP HQWHULQJ LQWR
DVVLJQPHQWWUDQVDFWLRQVDQGPD\DGYHUVHO\DIIHFWRXUDELOLW\WRUDLVHIXQGVIURPVXFKWUDQVDFWLRQV
:H IDFH DVVHWOLDELOLW\ PLVPDWFKHV ZKLFK FRXOG DIIHFW RXU OLTXLGLW\ DQG FRQVHTXHQWO\ PD\ DGYHUVHO\
DIIHFWRXURSHUDWLRQVDQGSURILWDELOLW\
:HIDFHSRWHQWLDOOLTXLGLW\ULVNVGXHWRYDU\LQJSHULRGVRYHUZKLFKRXUDVVHWVDQGOLDELOLWLHVPDWXUH$VLVW\SLFDO
IRU1%)&VDSRUWLRQRIRXUIXQGLQJUHTXLUHPHQWVLVPHWWKURXJKVKRUWWHUPIXQGLQJVRXUFHVVXFKDVEDQNORDQV
ZRUNLQJ FDSLWDO GHPDQG ORDQV FDVK FUHGLW VKRUW WHUP ORDQV DQG FRPPHUFLDO SDSHU +RZHYHU HDFK RI RXU
SURGXFWVGLIIHUVLQWHUPVRIWKH DYHUDJHWHQXUHDYHUDJH \LHOGDYHUDJH LQWHUHVWUDWHVDQGDYHUDJH VL]H RIORDQ
7KH DYHUDJH WHQXUH RI RXU DVVHWV PD\ QRW PDWFK ZLWK WKH DYHUDJH WHQXUH RI RXU OLDELOLWLHV &RQVHTXHQWO\ RXU
LQDELOLW\WRREWDLQDGGLWLRQDOFUHGLWIDFLOLWLHVRUUHQHZRXUH[LVWLQJFUHGLWIDFLOLWLHVLQDWLPHO\DQGFRVWHIIHFWLYH
PDQQHURUDWDOOPD\OHDGWRPLVPDWFKHVEHWZHHQRXUDVVHWVDQGOLDELOLWLHVZKLFKLQWXUQPD\DGYHUVHO\DIIHFW
RXU RSHUDWLRQV DQG ILQDQFLDO SHUIRUPDQFH )XUWKHU PLVPDWFKHV EHWZHHQ RXU DVVHWV DQG OLDELOLWLHV DUH
FRPSRXQGHGLQFDVHRISUHSD\PHQWVRIWKHILQDQFLQJIDFLOLWLHVZHJUDQWWRRXUFXVWRPHUV
$Q\ FKDQJH LQ FRQWURO RI RXU 3URPRWHUV DQGRU DQ\ GLVDVVRFLDWLRQ RI RXU &RPSDQ\ IURP WKH 6KULUDP
*URXSFRXOGDGYHUVHO\DIIHFWRXURSHUDWLRQVDQGSURILWDELOLW\
$VRI6HSWHPEHU6&/KROGV RIRXUSDLGXSVKDUHFDSLWDO,I6&/FHDVHVWRH[HUFLVHFRQWURO
RYHUXVDVDUHVXOWRIDQ\WUDQVIHURIVKDUHVRURWKHUZLVHRXUDELOLW\WRGHULYHDQ\EHQHILWIURPWKHEUDQGQDPH
³6KULUDP´DQGRXUJRRGZLOODVDSDUWRIWKH6KULUDP*URXSRIFRPSDQLHVPD\EHDGYHUVHO\DIIHFWHGZKLFKLQ
WXUQ FRXOG DGYHUVHO\ DIIHFW RXU EXVLQHVV DQG UHVXOWV RI RSHUDWLRQV $Q\ VXFK FKDQJH RI FRQWURO FRXOG DOVR
VLJQLILFDQWO\LQIOXHQFHRXUEXVLQHVVSROLFLHVDQGRSHUDWLRQV
:HEHQHILWLQVHYHUDOZD\VIURPRWKHUHQWLWLHVXQGHUWKH6KULUDP*URXS:HFDSLWDOL]HRQWKH6KULUDP*URXS¶V
HFRV\VWHPWRUHDFKRXWWRRXUSURVSHFWLYHFXVWRPHUVDQGRXUIRFXVKDVEHHQLQPD[LPL]LQJRXUDVVRFLDWLRQZLWK
WKH³6KULUDP´EUDQGQDPHDQGWKHV\QHUJLHVRIIHUHGE\WKHLQIUDVWUXFWXUHRIDQGHQWLWLHVLQWKH6KULUDP*URXS
7KH ODUJH FXVWRPHU EDVH DQG ZLGHVSUHDG QHWZRUN RI EXVLQHVV RXWOHWV RI HQWLWLHV VXFK DV 6KULUDP 7UDQVSRUW
)LQDQFH &RPSDQ\ /LPLWHG DQG HQWLWLHV RSHUDWLQJ XQGHU WKH ³6KULUDP &KLWV´ EUDQG QDPH KDV FRQWLQXHG WR
SURYLGH XV ZLWK D ODUJH SODWIRUP RI WDUJHW FXVWRPHUV )XUWKHU W\SLFDOO\ ORDQV SURYLGHG WR FKLW GHSRVLWRUV RI
6KULUDP &KLWV DUH SDUWO\ RU HQWLUHO\ VHFXUHG E\ WKHLU GHSRVLWV PDGH ZLWK 6KULUDP &KLWV $FFRUGLQJO\ DQ\
GLVDVVRFLDWLRQRIRXU&RPSDQ\IURPWKH6KULUDP*URXSDQGRURXULQDELOLW\WRDFFHVVWKHLQIUDVWUXFWXUHSURYLGHG
E\RWKHUFRPSDQLHVLQWKH6KULUDP*URXSFRXOGDGYHUVHO\DIIHFWRXUDELOLW\WRDWWUDFWFXVWRPHUVDQGWRH[SDQG
RXUEXVLQHVVZKLFKLQWXUQFRXOGDGYHUVHO\DIIHFWRXUJRRGZLOORSHUDWLRQVDQGSURILWDELOLW\
,QDELOLW\WRDFKLHYHDIDYRXUDEOHRXWFRPHIURPWKHUHFHQWUHVWUXFWXULQJRIRXU&RPSDQ\SXUVXDQWWRWKH
6FKHPHRI$UUDQJHPHQWFRXOGDGYHUVHO\DIIHFWRXURSHUDWLRQVDQGSURILWDELOLW\
,QWHUPVRIWKH6FKHPHRI$UUDQJHPHQWDQLQWHUPVRIWKH+LJK&RXUWRUGHUGDWHG-XQH6(+3/ZDV
PHUJHG LQWR 65+3/ ³&RQVROLGDWHG 65+3/´ ZLWK HIIHFW IURP $SULO DQG WKH &RQVROLGDWHG 65+3/
ZDV WKHQ PHUJHG ZLWK RXU &RPSDQ\ ZLWK HIIHFW IURP DXJXVW )RU IXUWKHU GHWDLOV SOHDVH VHH VHFWLRQ
WLWOHG³+LVWRU\DQG&HUWDLQ&RUSRUDWH0DWWHUV´RQSDJH
,IRXU&RPSDQ\LVXQDEOHWREHQHILWIURPWKHV\QHUJLHVRUHIILFLHQFLHVH[SHFWHGIURPWKLVDUUDQJHPHQWRULIWKH
SURSRVHGDUUDQJHPHQWGRHVQRW\LHOGGHVLUHGUHVXOWVRXU&RPSDQ\¶VRSHUDWLRQVDQGILQDQFLDOFRQGLWLRQPD\EH
PDWHULDOO\DGYHUVHO\DIIHFWHG
7KHWUDGHPDUNVHUYLFHPDUNDQGORJRLQFRQQHFWLRQZLWKWKH³6KULUDP´EUDQGZKLFKZHXVHLVOLFHQVHG
WR XV DQG FRQVHTXHQWO\ DQ\ WHUPLQDWLRQ RU QRQUHQHZDO RI VXFK OLFHQVH PD\ DGYHUVHO\ DIIHFW RXU
UHSXWDWLRQJRRGZLOORSHUDWLRQVDQGSURILWDELOLW\
3XUVXDQW WR D OLFHQVH DJUHHPHQW GDWHG $SULO EHWZHHQ RXU &RPSDQ\ DQG 6KULUDP 2ZQHUVKLS 7UXVW
³627´ZHDUHHQWLWOHGWRXVHWKHEUDQGQDPH³6KULUDP´DQGWKHDVVRFLDWHGPDUNRQDQRQH[FOXVLYHEDVLV,Q
WKLVUHJDUGRXU&RPSDQ\KDVWRSD\WR627RQWKHJURVVWXUQRYHURIRXU&RPSDQ\IRUWKHILUVW\HDURI
WKHOLFHQVHDJUHHPHQW5R\DOW\UDWHVIRUWKHVXEVHTXHQW\HDUVZLOOEHGHFLGHGPXWXDOO\RQRUEHIRUH$SULOVWRI
WKHUHVSHFWLYHILQDQFLDO\HDUV$ORQJZLWKWKHUR\DOW\RXU&RPSDQ\DOVRLVUHTXLUHGWRSD\WR627DPRXQWVE\
ZD\ RI UHLPEXUVHPHQW RI DFWXDO H[SHQVHV LQFXUUHG E\ 627 LQ UHVSHFW RI SURWHFWLRQ DQG GHIHQVH RI WKH
&RS\ULJKW7KLVDJUHHPHQWLVYDOLGWLOO0DUFKVXEMHFWWRDQ\SUHPDWXUHWHUPLQDWLRQWKHUHRIE\627LQ
DFFRUGDQFHZLWKWKHWHUPVDQGFRQGLWLRQVRIWKHDJUHHPHQW
,QWKHHYHQWVXFKOLFHQVH DJUHHPHQWLVWHUPLQDWHGRULVQRWUHQHZHGRUH[WHQGHGLQWKHIXWXUH ZH PD\ QRWEH
HQWLWOHGWRXVHWKHEUDQGQDPH³6KULUDP´DQGWKHDVVRFLDWHGPDUNLQFRQQHFWLRQZLWKRXUEXVLQHVVRSHUDWLRQV
&RQVHTXHQWO\ZHZLOOQRWEHDEOHWRGHULYHWKHJRRGZLOOWKDWZHKDYHEHHQHQMR\LQJXQGHUWKH³6KULUDP´EUDQG
)XUWKHU LI WKH FRPPHUFLDO WHUPV DQG FRQGLWLRQV LQFOXGLQJ WKH FRQVLGHUDWLRQ SD\DEOH SXUVXDQW WR WKH VDLG
DJUHHPHQWDUHUHYLVHGXQIDYRUDEO\RXU&RPSDQ\PD\EHUHTXLUHGWRDOORFDWHODUJHUSRUWLRQVRILWVSURILWVDQGRU
UHYHQXHVWRZDUGVVXFKFRQVLGHUDWLRQZKLFKZRXOGDGYHUVHO\DIIHFWRXUSURILWDELOLW\
:HRSHUDWHLQDFRPSHWLWLYHHQYLURQPHQWDQGZHEHOLHYHWKDWRXUEUDQGUHFRJQLWLRQLVDVLJQLILFDQWFRPSHWLWLYH
DGYDQWDJH WR XV ,I WKH OLFHQVH DJUHHPHQW LV QRW UHQHZHG RU LVWHUPLQDWHG ZH PD\ QHHG WR FKDQJH RXU QDPH
WUDGH PDUNVHUYLFH PDUN RU WKH ORJR $Q\ VXFK FKDQJH FRXOG UHTXLUH XV WR LQFXU DGGLWLRQDO FRVWV DQG PD\
DGYHUVHO\LPSDFWRXUUHSXWDWLRQJRRGZLOOEXVLQHVVSURVSHFWVDQGUHVXOWVRIRSHUDWLRQV
:HKDYHFHUWDLQFRQWLQJHQWOLDELOLWLHVZKLFKPD\DGYHUVHO\DIIHFWRXUILQDQFLDOFRQGLWLRQ
$VRI6HSWHPEHUZHKDGFHUWDLQFRQWLQJHQWOLDELOLWLHVQRWSURYLGHGIRUQDPHO\LQFRPHWD[DPRXQWLQJ
WR`ODNKV
)RU IXUWKHU LQIRUPDWLRQ RQ VXFK FRQWLQJHQW OLDELOLWLHV VHH µ1RWHV IRUPLQJ D SDUW RI WKH FRQVROLGDWHG ILQDQFLDO
VWDWHPHQWIRUWKHKDOI\HDUHQGHG6HSWHPEHU¶LQWKHVHFWLRQWLWOHG³)LQDQFLDO6WDWHPHQWV´RQSDJH
,Q WKH HYHQW WKDW DQ\ RI WKHVH FRQWLQJHQW OLDELOLWLHV PDWHULDOL]H RXU ILQDQFLDO FRQGLWLRQ PD\ EH DGYHUVHO\
DIIHFWHG
:HPD\KDYHWRFRPSO\ZLWKVWULFWUHJXODWLRQVDQGJXLGHOLQHVLVVXHGE\UHJXODWRU\DXWKRULWLHVLQ,QGLD
RXU QRQFRPSOLDQFH ZLWK RU DQ\ FKDQJHV WR ZKLFK FRXOG DGYHUVHO\ DIIHFW RXU EXVLQHVV DQG ILQDQFLDO
SHUIRUPDQFH
:HDUHUHJXODWHGSULQFLSDOO\E\DQGKDYHUHSRUWLQJREOLJDWLRQVWRWKH5%,:HDUHDOVRVXEMHFWWRWKHFRUSRUDWH
ODERXU WD[DWLRQ DQG RWKHU ODZV LQ HIIHFW LQ ,QGLD 7KH UHJXODWRU\ DQG OHJDO IUDPHZRUN JRYHUQLQJ XV PD\
FRQWLQXHWRFKDQJHDV,QGLD¶VHFRQRP\DQGFRPPHUFLDODQGILQDQFLDOPDUNHWVHYROYH,QUHFHQW\HDUVH[LVWLQJ
UXOHVDQGUHJXODWLRQVKDYHEHHQPRGLILHGQHZUXOHVDQGUHJXODWLRQVKDYHEHHQHQDFWHGDQGUHIRUPVKDYHEHHQ
LPSOHPHQWHGZKLFKDUHLQWHQGHGWRSURYLGHWLJKWHUFRQWURODQGPRUHWUDQVSDUHQF\LQ,QGLD¶VDVVHWILQDQFHVHFWRU
)XUWKHU5%,PD\LQFUHDVHWKHPLQLPXPFDSLWDODGHTXDF\UHTXLUHPHQWIRUGHSRVLWWDNLQJ1%)&VVXFKDVXV
&RPSOLDQFH ZLWK PDQ\ RI WKH UHJXODWLRQV DSSOLFDEOH WR RXU RSHUDWLRQV PD\ LQYROYH VLJQLILFDQW FRVWV DQG
RWKHUZLVHPD\LPSRVHUHVWULFWLRQVRQRXURSHUDWLRQV,IWKHLQWHUSUHWDWLRQRIWKHUHJXODWRUVDQGDXWKRULWLHVYDULHV
IURP RXU LQWHUSUHWDWLRQ ZH PD\ EH VXEMHFW WR SHQDOWLHV DQG WKH EXVLQHVV RI RXU &RPSDQ\ FRXOG EH DGYHUVHO\
DIIHFWHG7KHUHFDQEHQRDVVXUDQFHWKDWFKDQJHVLQWKHVHUHJXODWLRQVDQGWKHHQIRUFHPHQWRIH[LVWLQJDQGIXWXUH
UXOHV E\ JRYHUQPHQWDO DQG UHJXODWRU\ DXWKRULWLHV ZLOO QRW DGYHUVHO\ DIIHFW RXU EXVLQHVV DQG IXWXUH ILQDQFLDO
SHUIRUPDQFH
2XUDELOLW\WRDVVHVVPRQLWRUDQGPDQDJHULVNVLQKHUHQWLQRXUEXVLQHVVGLIIHUVIURPWKHVWDQGDUGVRI
VRPHRIRXUFRXQWHUSDUWVLQ,QGLDDQGLQVRPHGHYHORSHGFRXQWULHV
:HDUHH[SRVHGWRDYDULHW\RIULVNVLQFOXGLQJOLTXLGLW\ULVNLQWHUHVWUDWHULVNFUHGLWULVNRSHUDWLRQDOULVNDQG
OHJDOULVN7KHHIIHFWLYHQHVVRIRXUULVNPDQDJHPHQWLVOLPLWHGE\WKHTXDOLW\DQGWLPHOLQHVVRIDYDLODEOHGDWD
2XUKHGJLQJVWUDWHJLHVDQGRWKHUULVNPDQDJHPHQWWHFKQLTXHVPD\QRWEHIXOO\HIIHFWLYHLQPLWLJDWLQJRXUULVNV
LQ DOO PDUNHW HQYLURQPHQWV RU DJDLQVW DOO W\SHV RI ULVN LQFOXGLQJ ULVNV WKDW DUH XQLGHQWLILHG RU XQDQWLFLSDWHG
6RPH PHWKRGV RI PDQDJLQJ ULVNV DUH EDVHG XSRQ REVHUYHG KLVWRULFDO PDUNHW EHKDYLRU $V D UHVXOW WKHVH
PHWKRGV PD\ QRWSUHGLFWIXWXUHULVNH[SRVXUHV ZKLFKFRXOGEHJUHDWHUWKDQWKH KLVWRULFDO PHDVXUHVLQGLFDWHG
2WKHU ULVN PDQDJHPHQW PHWKRGV GHSHQG XSRQ DQ HYDOXDWLRQ RI LQIRUPDWLRQ UHJDUGLQJ PDUNHWV FXVWRPHUV RU
RWKHU PDWWHUV 7KLV LQIRUPDWLRQ PD\ QRW LQ DOO FDVHV EH DFFXUDWH FRPSOHWH FXUUHQW RU SURSHUO\ HYDOXDWHG
0DQDJHPHQW RI RSHUDWLRQDO OHJDO RU UHJXODWRU\ ULVN UHTXLUHV DPRQJ RWKHU WKLQJV SROLFLHV DQG SURFHGXUHV WR
SURSHUO\UHFRUGDQGYHULI\DQXPEHURIWUDQVDFWLRQVDQGHYHQWV$OWKRXJKZHKDYHHVWDEOLVKHGWKHVHSROLFLHVDQG
SURFHGXUHVWKH\PD\QRWEHIXOO\HIIHFWLYH2XUIXWXUHVXFFHVVZLOOGHSHQGLQSDUWRQRXUDELOLW\WRUHVSRQGWR
QHZ WHFKQRORJLFDO DGYDQFHV DQG HYROYLQJ 1%)& DQG UHWDLO ILQDQFH VHFWRU VWDQGDUGV DQG SUDFWLFHV RQ D FRVW
HIIHFWLYHDQGWLPHO\EDVLV7KHGHYHORSPHQWDQGLPSOHPHQWDWLRQRIVXFKWHFKQRORJ\HQWDLOVVLJQLILFDQWWHFKQLFDO
DQGEXVLQHVVULVNV7KHUH FDQEH QRDVVXUDQFHWKDW ZH ZLOOVXFFHVVIXOO\LPSOHPHQWQHZ WHFKQRORJLHVRUDGDSW
RXUWUDQVDFWLRQSURFHVVLQJV\VWHPVWRFXVWRPHUUHTXLUHPHQWVRUHYROYLQJPDUNHWVWDQGDUGV
:HUHTXLUHFHUWDLQVWDWXWRU\DQGUHJXODWRU\DSSURYDOVIRUFRQGXFWLQJRXUEXVLQHVVDQGRXULQDELOLW\WR
REWDLQUHWDLQRUUHQHZWKHPLQDWLPHO\PDQQHURUDWDOOPD\DGYHUVHO\DIIHFWRXURSHUDWLRQV
:HUHTXLUHFHUWDLQVWDWXWRU\DQGUHJXODWRU\DSSURYDOVIRUFRQGXFWLQJRXUEXVLQHVV)RUH[DPSOHZHDUHUHTXLUHG
WR REWDLQ DQG PDLQWDLQ D FHUWLILFDWH RI UHJLVWUDWLRQ IRU FDUU\LQJ RQ EXVLQHVV DV DQ 1%)& D FHUWLILFDWH WKDW LV
VXEMHFWWRQXPHURXVFRQGLWLRQV:HDOVRUHTXLUHOLFHQVHVDQGDSSURYDOVWRRSHUDWHRXUYDULRXVOLQHVRIEXVLQHVV
:HPD\QRWEHDEOHWRREWDLQVXFKDSSURYDOVLQDWLPHO\PDQQHURUDWDOO
,QDGGLWLRQRXUYDULRXVRIILFHVDUHUHTXLUHGWREHUHJLVWHUHGXQGHUWKHUHOHYDQWVKRSVDQGHVWDEOLVKPHQWVODZVRI
WKH VWDWHVDQGDOVRUHTXLUH D WUDGH OLFHQVH LQFHUWDLQVWDWHV7KH VKRSVDQGHVWDEOLVKPHQW ODZVUHJXODWH YDULRXV
HPSOR\PHQW FRQGLWLRQV LQFOXGLQJ ZRUNLQJ KRXUV KROLGD\V DQG OHDYH DQG RYHUWLPH FRPSHQVDWLRQ $ FRXUW
DUELWUDWLRQSDQHORUUHJXODWRU\DXWKRULW\PD\LQWKHIXWXUHILQGWKDWZHKDYHQRWFRPSOLHGZLWKDSSOLFDEOHOHJDO
RUUHJXODWRU\UHTXLUHPHQWV:HPD\DOVREHVXEMHFWWRODZVXLWVRUDUELWUDWLRQFODLPVE\FXVWRPHUVHPSOR\HHVRU
RWKHU WKLUG SDUWLHV LQ WKH GLIIHUHQW VWDWH MXULVGLFWLRQV LQ ,QGLD LQ ZKLFK ZH FRQGXFW RXU EXVLQHVV ,I ZH IDLO WR
REWDLQRUUHWDLQDQ\RIWKHVHDSSURYDOVRUOLFHQVHVRUUHQHZDOVWKHUHRILQDWLPHO\PDQQHURUDWDOORXUEXVLQHVV
PD\EHDGYHUVHO\DIIHFWHG,IZHIDLOWRFRPSO\RUDUHJXODWRUFODLPVZHKDYHQRWFRPSOLHGZLWKDQ\RIWKHVH
FRQGLWLRQVRXUFHUWLILFDWHRI UHJLVWUDWLRQ PD\EH VXVSHQGHGRUFDQFHOOHGDQG ZHVKDOOQRWEHDEOHWRFDUU\RQ
VXFKDFWLYLWLHV:HPD\DOVRLQFXUVXEVWDQWLDOFRVWVUHODWHGWROLWLJDWLRQLIZHDUHVXEMHFWWRVLJQLILFDQWUHJXODWRU\
DFWLRQZKLFKPD\DGYHUVHO\DIIHFWRXUEXVLQHVVIXWXUHILQDQFLDOSHUIRUPDQFHDQGUHVXOWVRIRSHUDWLRQV
:HPD\QRWEHLQFRPSOLDQFHZLWKUHOHYDQWVWDWHPRQH\OHQGLQJODZVZKLFKFRXOGDGYHUVHO\DIIHFWRXU
EXVLQHVV ,Q WKH HYHQW WKDW DQ\ VWDWH JRYHUQPHQW UHTXLUHV XV WR FRPSO\ ZLWK WKH SURYLVLRQV RI WKHLU
UHVSHFWLYH VWDWH PRQH\ OHQGLQJ ODZV RU LPSRVHV DQ\ SHQDOW\ LQFOXGLQJ IRU SULRU QRQFRPSOLDQFH RXU
EXVLQHVVUHVXOWVRIRSHUDWLRQVDQGILQDQFLDOFRQGLWLRQPD\EHDGYHUVHO\DIIHFWHG
7KHUHLVDPELJXLW\RQZKHWKHURUQRW1%)&VDUHUHTXLUHGWRFRPSO\ZLWKWKHSURYLVLRQVRIVWDWHPRQH\OHQGLQJ
ODZVWKDWHVWDEOLVKFHLOLQJVRQLQWHUHVWUDWHV)XUWKHULQWKHHYHQWWKHSURYLVLRQVRIDQ\VWDWHVSHFLILFUHJXODWLRQV
DUH H[WHQGHG WR 1%)&V LQ WKH JROG ORDQ EXVLQHVV VXFK DV RXU &RPSDQ\ ZH FRXOG KDYH LQFUHDVHG FRVWV RI
FRPSOLDQFH DQG RXU EXVLQHVV DQG RSHUDWLRQV FRXOG EH DGYHUVHO\ DIIHFWHG 7KHUH DUH VHYHUH FLYLO DQG FULPLQDO
SHQDOWLHVIRUQRQFRPSOLDQFHZLWKWKHUHOHYDQWPRQH\OHQGLQJVWDWXWHV,QWKHHYHQWWKDWWKHJRYHUQPHQWRIDQ\
VWDWHLQ,QGLDUHTXLUHVXVWRFRPSO\ZLWKWKHSURYLVLRQVRIWKHLUUHVSHFWLYHVWDWHPRQH\OHQGLQJODZVRULPSRVHV
DQ\SHQDOW\DJDLQVWXVRXU'LUHFWRUVRURXURIILFHUVLQFOXGLQJIRUSULRUQRQFRPSOLDQFHRXUEXVLQHVVUHVXOWVRI
RSHUDWLRQVDQGILQDQFLDOFRQGLWLRQPD\EHDGYHUVHO\DIIHFWHG
:H DUH VXEMHFW WR VXSHUYLVLRQ DQG UHJXODWLRQ E\ WKH 5%, DV D V\VWHPLFDOO\ LPSRUWDQW GHSRVLWWDNLQJ
1%)&DQGFKDQJHVLQ5%,¶VUHJXODWLRQVJRYHUQLQJXVFRXOGDGYHUVHO\DIIHFWRXUEXVLQHVV
:HDUHVXEMHFWWRWKH5%,¶VJXLGHOLQHVRQILQDQFLDOUHJXODWLRQRI1%)&VLQFOXGLQJFDSLWDODGHTXDF\H[SRVXUH
DQGRWKHUSUXGHQWLDOQRUPV7KH5%,DOVRUHJXODWHVWKHFUHGLWIORZE\EDQNVWR1%)&VDQGSURYLGHVJXLGHOLQHV
WR FRPPHUFLDO EDQNV ZLWK UHVSHFW WR WKHLU LQYHVWPHQW DQG FUHGLW H[SRVXUH QRUPV IRU OHQGLQJ WR 1%)&V 7KH
5%,¶VUHJXODWLRQVRI1%)&VFRXOGFKDQJHLQWKHIXWXUHZKLFKPD\UHTXLUHXVWRUHVWUXFWXUHRXUDFWLYLWLHVLQFXU
DGGLWLRQDOFRVWUDLVHDGGLWLRQDOFDSLWDORURWKHUZLVHDGYHUVHO\DIIHFWRXUEXVLQHVVDQGRXUILQDQFLDOSHUIRUPDQFH
7KH5%,IURPWLPHWRWLPH DPHQGVWKHUHJXODWRU\ IUDPHZRUN JRYHUQLQJ1%)&VWRDGGUHVVFRQFHUQVDULVLQJ
IURP FHUWDLQ GLYHUJHQW UHJXODWRU\ UHTXLUHPHQWV IRU EDQNV DQG 1%)&V 3XUVXDQW WR WZR QRWLILFDWLRQV GDWHG
'HFHPEHU1RWLILFDWLRQV1R'1%6&*03.DQG'1%6&*03.WKH
5%,DPHQGHGWKH1%)&$FFHSWDQFHRI3XEOLF'HSRVLWV'LUHFWLRQVUHFODVVLI\LQJGHSRVLWWDNLQJ 1%)&V
VXFK DV XV :H DUH DOVR VXEMHFW WR WKH UHTXLUHPHQWV RI WKH 1RQEDQNLQJ )LQDQFLDO 'HSRVLW $FFHSWLQJ RU
+ROGLQJ &RPSDQLHV 3UXGHQWLDO 1RUPV 5HVHUYH %DQN 'LUHFWLRQV DV DPHQGHG DQG WKH ³*XLGHOLQHV RQ
6HFXULWL]DWLRQRI6WDQGDUG$VVHWV´LVVXHGE\WKH5%,WKURXJKLWVFLUFXODUGDWHG0D\ZKLFKUHJXODWHRXU
VHFXULWL]DWLRQDQGDVVLJQPHQWWUDQVDFWLRQV
7KH ODZV DQG UHJXODWLRQV JRYHUQLQJ WKH EDQNLQJ DQG ILQDQFLDO VHUYLFHV LQGXVWU\ LQ ,QGLD KDYH EHFRPH
LQFUHDVLQJO\ FRPSOH[ DQG FRYHU D ZLGH YDULHW\ RI LVVXHV VXFK DV LQWHUHVW UDWHV OLTXLGLW\ LQYHVWPHQWV HWKLFDO
LVVXHVPRQH\ODXQGHULQJDQGSULYDF\0RUHRYHUWKHVHODZVDQGUHJXODWLRQVFDQEHDPHQGHGVXSSOHPHQWHGRU
FKDQJHGDWDQ\WLPHVXFKWKDWZHPD\EHUHTXLUHGWRUHVWUXFWXUHRXUDFWLYLWLHVDQGLQFXUDGGLWLRQDOH[SHQVHVWR
FRPSO\ ZLWK VXFK ODZV DQG UHJXODWLRQV ZKLFK FRXOG PDWHULDOO\ DQG DGYHUVHO\ DIIHFW RXU EXVLQHVV DQG RXU
ILQDQFLDO SHUIRUPDQFH )RU H[DPSOH LQ 'HFHPEHU WKH GUDIW JXLGHOLQHV EDVHG RQ WKH 8VKD 7KRUDW
&RPPLWWHH 5HSRUW ZHUH SXEOLVKHG E\ 5%, ZKLFK VHHN WR VWUHQJWKHQ WKH QRUPV JRYHUQLQJ 1%)&V LQFOXGH
SURYLVLRQVIRU
WKHLQWURGXFWLRQRIDOLTXLGLW\FRYHUDJHUDWLRIRUDOOUHJLVWHUHG1%)&V
KLJKHUULVNZHLJKWIRUFDSLWDOPDUNHWH[SRVXUHVDQGFRPPHUFLDOUHDOHVWDWHH[SRVXUHVIRU1%)&VWKDWDUH
QRWVSRQVRUHGE\EDQNVDVFRPSDUHGWR1%)&VVSRQVRUHGE\EDQNVRUKDYLQJEDQNVDVSDUWRIWKHLUJURXSV
DVVHWFODVVLILFDWLRQDQGSURYLVLRQLQJQRUPVVLPLODUWREDQNVIRUDOOUHJLVWHUHG1%)&VLQDSKDVHGPDQQHU
LQFOXGLQJWKHGD\VRYHUGXHQRUPIRUFODVVLI\LQJ13$VIURPWKHFXUUHQWVL[PRQWKVDQG
WKH UHTXLUHPHQW WR PDLQWDLQ D FDSLWDO DGHTXDF\ UDWLR RI DW OHDVW ZLWK 7LHU , FDSLWDO IRU &5$5
SXUSRVHVFRPSULVLQJDWOHDVW
&RPSOLDQFH ZLWK PDQ\ RI WKH UHJXODWLRQV DSSOLFDEOH WR RXU RSHUDWLRQV LQ ,QGLD LQFOXGLQJ DQ\ UHVWULFWLRQV RQ
LQYHVWPHQWV DQG RWKHU DFWLYLWLHV FXUUHQWO\ EHLQJ FDUULHG RXW E\ XV LQYROYHV D QXPEHU RI ULVNV SDUWLFXODUO\ LQ
PDUNHWV ZKHUH DSSOLFDEOH UHJXODWLRQV PD\ EH VXEMHFW WR YDU\LQJ LQWHUSUHWDWLRQV ,I WKH LQWHUSUHWDWLRQ RI WKH
UHJXODWRUVDQGDXWKRULWLHVYDULHVIURPRXULQWHUSUHWDWLRQZHPD\EHVXEMHFWWRSHQDOWLHVDQGRXUEXVLQHVVFRXOG
EH DGYHUVHO\ DIIHFWHG :H DUH DOVR VXEMHFW WR FKDQJHV LQ ODZV UHJXODWLRQV DQG DFFRXQWLQJ SULQFLSOHV DQG
SUDFWLFHV7KHUHFDQEHQRDVVXUDQFHWKDWWKHODZVJRYHUQLQJWKHILQDQFLDOVHUYLFHVVHFWRUZLOOQRWFKDQJHLQWKH
IXWXUH RU WKDW VXFK FKDQJHV RU WKH LQWHUSUHWDWLRQ RU HQIRUFHPHQW RI H[LVWLQJ DQG IXWXUH ODZV DQG UXOHV E\
JRYHUQPHQWDODQGUHJXODWRU\DXWKRULWLHVZLOOQRWDGYHUVHO\DIIHFWRXUEXVLQHVVDQGIXWXUHILQDQFLDOSHUIRUPDQFH
)RUH[DPSOHWKH5%,KDVQRWHVWDEOLVKHGDFHLOLQJRQWKHUDWHRILQWHUHVWWKDWFDQEHFKDUJHGE\1%)&VLQWKH
DVVHWILQDQFHVHFWRUZKLFKDUHQRWUHJLVWHUHGDV1%)&0),VDVVHWRXWLQWKHPDVWHUFLUFXODURQ³,QWURGXFWLRQRI
1HZ&DWHJRU\RI1%)&V±1%)&0),V'LUHFWLRQ´LVVXHGE\WKH5%,RQ-XO\,QWKHHYHQWWKDWZHDUH
FODVVLILHGDVDQ1%)&0),ZHZLOOEHVXEMHFWWRDFHLOLQJRILQWHUHVWSHU\HDURQLQGLYLGXDOORDQVDVVHW
RXWLQWKLVFLUFXODU&XUUHQWO\WKH5%,UHTXLUHVWKDWWKHERDUGRIGLUHFWRUVRIHDFK1%)&DGRSWVDQLQWHUHVWUDWH
PRGHOWKDWWDNHVLQWRDFFRXQWUHOHYDQWIDFWRUVVXFKDVWKHFRVWRIIXQGVPDUJLQDQGULVNSUHPLXP:KLOHVWDWHV
KDYH PRQH\ OHQGLQJ ODZV WKDW HVWDEOLVK FHLOLQJV RQ LQWHUHVW UDWHV LV XQFOHDU ZKHWKHU 1%)&V DUH UHTXLUHG WR
FRPSO\ ZLWK WKHVH ODZV ,I WKHVH VWDWHV RU RWKHU UHJXODWRU\ ERGLHV GHFLGH WKDW WKHVH ODZV DSSO\ WR XV ZH RXU
'LUHFWRUVDQGRWKHURIILFHUVPD\EHDVVHVVHGSHQDOWLHVRUILQHV
$GGLWLRQDOO\ ZH DUH UHTXLUHG WR PDNH YDULRXV ILOLQJV ZLWK WKH 5%, WKH 5HJLVWUDU RI &RPSDQLHV DQG RWKHU
UHOHYDQWDXWKRULWLHVSXUVXDQWWRWKHSURYLVLRQVRI5%,UHJXODWLRQVWKH&RPSDQLHV$FWDQGWKH&RPSDQLHV
$FW WR WKH H[WHQW DSSOLFDEOH DQG RWKHU UHJXODWLRQV ,I ZH IDLO WR FRPSO\ ZLWK WKHVH UHTXLUHPHQWV RU D
UHJXODWRU FODLPV ZH KDYH QRW FRPSOLHG ZLWK WKHVH UHTXLUHPHQWV ZH PD\ EH VXEMHFW WR SHQDOWLHV DQG
FRPSRXQGLQJSURFHHGLQJV
2XU 3URPRWHUV KDYH VLJQLILFDQW FRQWURO LQ RXU &RPSDQ\ ZKLFK ZLOO HQDEOH WKHP WR LQIOXHQFH WKH
RXWFRPHRIPDWWHUVVXEPLWWHGWRVKDUHKROGHUVIRUDSSURYDODQGWKHLULQWHUHVWVPD\GLIIHUIURPWKRVHRI
RWKHUVKDUHKROGHUV
$V RI 'HFHPEHU RXU 3URPRWHU 6KULUDP &DSLWDO RZQHG RI RXU SDLGXS HTXLW\ VKDUH FDSLWDO
3OHDVH VHH VHFWLRQ WLWOHG ³2XU 3URPRWHU´ RQ SDJH 2XU 3URPRWHU KDV WKH DELOLW\ WR FRQWURO RXU EXVLQHVV
LQFOXGLQJ PDWWHUV UHODWLQJ WR DQ\ VDOH RI DOO RU VXEVWDQWLDOO\ DOO RI RXU DVVHWV WKH WLPLQJ DQG GLVWULEXWLRQ RI
GLYLGHQGVDQGWKHHOHFWLRQRUWHUPLQDWLRQRIDSSRLQWPHQWRIRXURIILFHUVDQGGLUHFWRUV7KLVFRQWUROFRXOGGHOD\
GHIHU RU SUHYHQW D FKDQJH LQ FRQWURO RI RXU &RPSDQ\ LPSHGH D PHUJHU FRQVROLGDWLRQ WDNHRYHU RU RWKHU
EXVLQHVVFRPELQDWLRQLQYROYLQJRXU&RPSDQ\RUGLVFRXUDJHDSRWHQWLDODFTXLUHUIURPPDNLQJDWHQGHURIIHURU
RWKHUZLVHDWWHPSWLQJWRREWDLQFRQWURORIRXU&RPSDQ\HYHQLILWLVLQRXU&RPSDQ\¶VEHVWLQWHUHVW,QDGGLWLRQ
IRUVRORQJDVRXU3URPRWHU FRQWLQXHVWRH[HUFLVH VLJQLILFDQWFRQWURORYHURXU&RPSDQ\LW PD\ LQIOXHQFHWKH
PDWHULDOSROLFLHVRIRXU&RPSDQ\LQD PDQQHUWKDWFRXOG FRQIOLFW ZLWKWKH LQWHUHVWVRI RXURWKHUVKDUHKROGHUV
7KH 3URPRWHU PD\ KDYH LQWHUHVWV WKDW DUH DGYHUVH WR WKH LQWHUHVWV RI RXU RWKHU VKDUHKROGHUV DQG PD\ WDNH
SRVLWLRQVZLWKZKLFKZHRURXURWKHUVKDUHKROGHUVGRQRWDJUHH
7KH UHVWULFWLRQV LPSRVHG RQ 1%)&V E\ WKH 5%, WKURXJK D 0DVWHU &LUFXODU ± %DQN )LQDQFH WR 1RQ
%DQNLQJ )LQDQFLDO &RPSDQLHV GDWHG -XO\ WKH ³0DVWHU &LUFXODU´ PD\ UHVWULFW RXU DELOLW\ WR
REWDLQEDQNILQDQFLQJIRUVSHFLILFDFWLYLWLHV
3XUVXDQW WR WKH 0DVWHU &LUFXODU WKH 5%, KDV LPSRVHG FHUWDLQ UHVWULFWLRQV RQ EDQNV SURYLGLQJ ILQDQFLQJ WR
1%)&V8QGHUWKH0DVWHU&LUFXODUFHUWDLQ1%)&DFWLYLWLHVDUHLQHOLJLEOHIRUILQDQFLQJE\EDQNFUHGLWVXFKDV
FHUWDLQW\SHVRIGLVFRXQWLQJDQGUHGLVFRXQWLQJRIELOOVORDQVDQGDGYDQFHVE\1%)&VWRWKHLUVXEVLGLDULHVDQG
JURXSFRPSDQLHVRUOHQGLQJE\1%)&VWRLQGLYLGXDOVIRUVXEVFULELQJWRSXEOLFRIIHULQJVDQGSXUFKDVLQJVKDUHV
IURPWKHVHFRQGDU\PDUNHWXQVHFXUHGORDQVLQWHUFRUSRUDWHGHSRVLWVSURYLGHGE\WKH1%)&VDQGVXEVFULSWLRQ
WRVKDUHVRUGHEHQWXUHVE\1%)&V,QDGGLWLRQWKH0DVWHU&LUFXODUSURKLELWV
EDQNVIURPJUDQWLQJEULGJHORDQVRIDQ\QDWXUHSURYLGHLQWHULPILQDQFHDJDLQVWFDSLWDORUGHEHQWXUHLVVXHV
DQGRULQWKHIRUPRIORDQVRIDWHPSRUDU\QDWXUHSHQGLQJWKHUDLVLQJRIORQJWHUPIXQGVIURPWKHPDUNHWE\
ZD\RIFDSLWDOGHSRVLWVRURWKHUPHDQVWRDQ\FDWHJRU\RI1%)&V
EDQNVDFFHSWLQJVKDUHVDQGGHEHQWXUHVDVFROODWHUDOIRUVHFXUHGORDQVJUDQWHGWR1%)&VDQG
EDQNV IURP H[HFXWLQJ JXDUDQWHHV FRYHULQJ LQWHUFRPSDQ\ GHSRVLWV RU ORDQV WKDW JXDUDQWHH UHIXQG RI
GHSRVLWVRUORDQVDFFHSWHGE\1%)&V7KH0DVWHU&LUFXODUDOVRUHTXLUHVWKDWJXDUDQWHHVQRWEHLVVXHGE\
EDQNVIRUWKHSXUSRVHRILQGLUHFWO\HQDEOLQJWKHSODFHPHQWRIGHSRVLWVZLWK1%)&V
7KHVHUHVWULFWLRQV PD\DGYHUVHO\DIIHFWRXUDFFHVVWRRUWKH DYDLODELOLW\RIEDQN ILQDQFLQJ ZKLFK PD\LQWXUQ
DGYHUVHO\DIIHFWRXUILQDQFLDOFRQGLWLRQDQGUHVXOWVRIRSHUDWLRQV
:H KDYH HQWHUHG LQWR DQG ZLOO FRQWLQXH WR HQWHU LQWR UHODWHG SDUW\ WUDQVDFWLRQV DQG WKHUH FDQ EH QR
DVVXUDQFHWKDWZHFRXOGQRWKDYHDFKLHYHGPRUHIDYRUDEOHWHUPVKDGVXFKWUDQVDFWLRQVQRWEHHQHQWHUHG
LQWRZLWKUHODWHGSDUWLHV
:HKDYHHQWHUHGLQWRWUDQVDFWLRQVZLWKVHYHUDOUHODWHGSDUWLHVLQFOXGLQJRXU3URPRWHU'LUHFWRUVDQGFRPSDQLHV
LQWKH6KULUDP*URXS:HFDQJLYHQRDVVXUDQFHWKDWZHFRXOGQRWKDYHDFKLHYHGPRUHIDYRUDEOHWHUPVKDGVXFK
WUDQVDFWLRQV EHHQ HQWHUHG LQWR ZLWK SDUWLHV WKDW ZHUH QRW UHODWHG SDUWLHV )XUWKHUPRUH LW LV OLNHO\ WKDW ZH ZLOO
HQWHULQWRUHODWHGSDUW\WUDQVDFWLRQVLQWKHIXWXUH7KHUHFDQEHQRDVVXUDQFHWKDWVXFKWUDQVDFWLRQVLQGLYLGXDOO\
RU LQ WKH DJJUHJDWH ZLOO QRW KDYH DQ DGYHUVH HIIHFW RQ RXU ILQDQFLDO FRQGLWLRQ DQG UHVXOWV RI RSHUDWLRQV 7KH
WUDQVDFWLRQV ZH KDYH HQWHUHG LQWR DQG DQ\ IXWXUH WUDQVDFWLRQV ZLWK RXU UHODWHG SDUWLHV KDYH LQYROYHG RU FRXOG
SRWHQWLDOO\LQYROYHFRQIOLFWVRILQWHUHVW)RUPRUHLQIRUPDWLRQ SOHDVHVHHVHFWLRQWLWOHG³)LQDQFLDO6WDWHPHQWV´
RQSDJH
$Q\ IDLOXUH E\ XV WR LGHQWLI\ PDQDJH FRPSOHWH DQG LQWHJUDWH DFTXLVLWLRQV GLYHVWLWXUHV DQG RWKHU
VLJQLILFDQW WUDQVDFWLRQV VXFFHVVIXOO\ FRXOG DGYHUVHO\ DIIHFW RXU UHVXOWV RI RSHUDWLRQV EXVLQHVV DQG
SURVSHFWV
$V SDUW RI RXU EXVLQHVV VWUDWHJ\ ZH PD\ DFTXLUH FRPSOHPHQWDU\ FRPSDQLHV RU EXVLQHVVHV GLYHVW QRQFRUH
EXVLQHVVHV RU DVVHWV HQWHU LQWR VWUDWHJLF DOOLDQFHV DQG MRLQW YHQWXUHV DQG PDNH LQYHVWPHQWV WR IXUWKHU RXU
EXVLQHVV,QRUGHUWRSXUVXHWKLVVWUDWHJ\VXFFHVVIXOO\ZHPXVWLGHQWLI\VXLWDEOHFDQGLGDWHVIRUDQGVXFFHVVIXOO\
FRPSOHWHVXFKWUDQVDFWLRQVVRPHRIZKLFKPD\EHODUJHDQGFRPSOH[DQGPDQDJHWKHLQWHJUDWLRQRIDFTXLUHG
FRPSDQLHVRUHPSOR\HHV:HPD\QRWIXOO\UHDOL]HDOORIWKHDQWLFLSDWHGEHQHILWVRIDQ\VXFKWUDQVDFWLRQZLWKLQ
WKHDQWLFLSDWHGWLPHIUDPHRUDWDOO$Q\LQFUHDVHGRUXQH[SHFWHGFRVWVXQDQWLFLSDWHGGHOD\VRUIDLOXUHWRDFKLHYH
FRQWUDFWXDO REOLJDWLRQV FRXOG PDNH VXFK WUDQVDFWLRQV OHVV SURILWDEOH RU XQSURILWDEOH 0DQDJLQJ EXVLQHVV
FRPELQDWLRQVDQGLQYHVWPHQWWUDQVDFWLRQVUHTXLUHVYDU\LQJOHYHOVRIPDQDJHPHQWUHVRXUFHVZKLFKPD\GLYHUW
RXU DWWHQWLRQ IURP RWKHU EXVLQHVV RSHUDWLRQV PD\ UHVXOW LQ VLJQLILFDQW FRVWV DQG H[SHQVHV DQG FKDUJHV WR
HDUQLQJV7KHFKDOOHQJHVLQYROYHGLQLQWHJUDWLRQLQFOXGH
FRPELQLQJSURGXFWRIIHULQJVDQGHQWHULQJLQWRQHZPDUNHWVLQZKLFKZHDUHQRWH[SHULHQFHG
FRQVROLGDWLQJDQGPDLQWDLQLQJUHODWLRQVKLSVZLWKFXVWRPHUV
FRQVROLGDWLQJDQGUDWLRQDOL]LQJWUDQVDFWLRQSURFHVVHVDQGFRUSRUDWHDQG,7LQIUDVWUXFWXUH
LQWHJUDWLQJHPSOR\HHVDQGPDQDJLQJHPSOR\HHLVVXHV
FRRUGLQDWLQJ DQG FRPELQLQJ DGPLQLVWUDWLYH DQG RWKHU RSHUDWLRQV DQG UHODWLRQVKLSV ZLWK WKLUG SDUWLHV LQ
DFFRUGDQFHZLWKDSSOLFDEOHODZVDQGRWKHUREOLJDWLRQVZKLOHPDLQWDLQLQJDGHTXDWHVWDQGDUGVFRQWUROVDQG
SURFHGXUHV
DFKLHYLQJVDYLQJVIURPLQIUDVWUXFWXUHLQWHJUDWLRQDQG
PDQDJLQJRWKHUEXVLQHVVLQIUDVWUXFWXUHDQGRSHUDWLRQDOLQWHJUDWLRQLVVXHV
2XUVXFFHVVGHSHQGVLQODUJHSDUWXSRQRXUPDQDJHPHQWWHDPDQGNH\PDQDJHULDOSHUVRQQHODQGRXU
DELOLW\WRDWWUDFWWUDLQDQGUHWDLQVXFKSHUVRQV
:HGHSHQGVLJQLILFDQWO\XSRQRXUPDQDJHULDOSHUVRQQHOWRLPSOHPHQWRXUJURZWKVWUDWHJLHVDGGUHVVHPHUJLQJ
FKDOOHQJHVDQGHQVXUHDKLJKVWDQGDUGRIFOLHQWVHUYLFH,QRUGHUWREHVXFFHVVIXOZHPXVWDWWUDFWWUDLQPRWLYDWH
DQGUHWDLQKLJKO\VNLOOHGHPSOR\HHVHVSHFLDOO\EXVLQHVVRXWOHWPDQDJHUVDQGSURGXFWH[HFXWLYHV,I ZHFDQQRW
KLUHDGGLWLRQDOTXDOLILHGSHUVRQQHORUUHWDLQWKHPZHZLOOQHHGWRUHFUXLWQHZHPSOR\HHVZKRZLOOKDYHWREH
WUDLQHGDQGLQWHJUDWHGLQWRRXURSHUDWLRQV:HZLOODOVRKDYHWRWUDLQH[LVWLQJHPSOR\HHVWRDGKHUHSURSHUO\WR
LQWHUQDOFRQWUROVDQGULVNPDQDJHPHQWSURFHGXUHV)DLOXUHWRKLUHDQGWUDLQVXLWDEOHHPSOR\HHVPD\UHVXOWLQDQ
LQFUHDVHLQHPSOR\HHDWWULWLRQUDWHVGLYHUWPDQDJHPHQWUHVRXUFHVDQGVXEMHFWXVWRLQFXUULQJDGGLWLRQDOKXPDQ
UHVRXUFH UHODWHG H[SHQGLWXUH DQG RXU DELOLW\ WR H[SDQG RXU EXVLQHVV ZLOO EH LPSDLUHG DQG RXU UHYHQXH FRXOG
GHFOLQH +LULQJ DQG UHWDLQLQJ TXDOLILHG DQG VNLOOHG PDQDJHUV DUH FULWLFDO WR RXU IXWXUH DV RXU EXVLQHVV PRGHO
GHSHQGV RQ RXU FUHGLWDSSUDLVDO DQG DVVHW YDOXDWLRQ PHFKDQLVP ZKLFK DUH SHUVRQQHOGULYHQ RSHUDWLRQV
0RUHRYHUFRPSHWLWLRQIRUH[SHULHQFHGHPSOR\HHVLQWKHILQDQFHVHFWRUFDQEHVLJQLILFDQWDQGZHGRQRWKDYH
NH\ PDQ LQVXUDQFH 2XU LQDELOLW\ WR DWWUDFW DQG UHWDLQ WDOHQWHG SURIHVVLRQDOV RU WKH UHVLJQDWLRQ RU ORVV RI NH\
PDQDJHPHQWSHUVRQQHOPD\KDYHDQDGYHUVHLPSDFWRQRXUEXVLQHVVDQGIXWXUHILQDQFLDOSHUIRUPDQFH
2XU EXVLQHVV VWUDWHJ\ PD\ FKDQJH LQ WKH IXWXUH DQG PD\ EH GLIIHUHQW IURP WKDW ZKLFK LV FRQWDLQHG
KHUHLQ $Q\ IDLOXUH WR VXFFHVVIXOO\ GLYHUVLI\ LQWR RWKHU EXVLQHVVHV FDQ DGYHUVHO\ DIIHFW RXU UHVXOWV RI
RSHUDWLRQVDQGILQDQFLDOFRQGLWLRQ
2XUFXUUHQWEXVLQHVVVWUDWHJ\LVLQWHUDOLDWRFRQWLQXHWRJURZRXUVPDOOHQWHUSULVHILQDQFHVHJPHQWJURZRXU
KRXVLQJILQDQFHEXVLQHVVDQGH[SDQGRXUEXVLQHVVRXWOHWQHWZRUN:HFDQQRWDVVXUH\RXWKDWZHZLOOFRQWLQXHWR
IROORZWKHVHEXVLQHVVVWUDWHJLHV,QWKHIXWXUHZHPD\GHFLGHWRGLYHUVLI\LQWRRWKHUEXVLQHVVHV:HKDYHVWDWHG
RXUREMHFWLYHVIRUUDLVLQJIXQGVWKURXJKWKH,VVXHDQGKDYHVHWIRUWKRXUVWUDWHJ\IRURXUIXWXUHEXVLQHVVKHUHLQ
+RZHYHUGHSHQGLQJRQSUHYDLOLQJPDUNHWFRQGLWLRQVDQGRWKHUFRPPHUFLDOFRQVLGHUDWLRQVRXUEXVLQHVVPRGHO
LQWKHIXWXUHPD\FKDQJHIURPZKDWLVGHVFULEHGKHUHLQ
:HFDQQRWDVVXUH\RXWKDWDQ\GLYHUVLILFDWLRQLQWRRWKHUEXVLQHVVHVZLOOEHEHQHILFLDOWRXV)XUWKHUDQ\IDLOXUH
WRVXFFHVVIXOO\GLYHUVLI\LQQHZEXVLQHVVHVFDQDGYHUVHO\DIIHFWRXUILQDQFLDOFRQGLWLRQ
2XUUHVXOWVRIRSHUDWLRQVFRXOGEHDGYHUVHO\DIIHFWHGE\DQ\GLVSXWHVZLWKRXUHPSOR\HHV
$VRI6HSWHPEHUZHHPSOR\HGHPSOR\HHV&XUUHQWO\QRQHRIRXUHPSOR\HHVLVDPHPEHURID
ODERU XQLRQ :KLOH ZH EHOLHYH WKDW ZH PDLQWDLQ JRRG UHODWLRQVKLSV ZLWK RXU HPSOR\HHV WKHUH FDQ EH QR
DVVXUDQFHWKDWZHZLOOQRWH[SHULHQFHIXWXUHGLVUXSWLRQVWRRXURSHUDWLRQVGXHWRGLVSXWHVRURWKHUSUREOHPVZLWK
RXUZRUNIRUFHZKLFKPD\DGYHUVHO\DIIHFWRXUEXVLQHVVDQGUHVXOWVRIRSHUDWLRQV
2XU JROG ORDQV EXVLQHVV FRXOG EH DGYHUVHO\ LPSDFWHG E\ 5%, UHTXLUHPHQWV LQ FRQQHFWLRQ ZLWK OHQGLQJ
DJDLQVWVHFXULW\RIJROGMHZHOOHU\
3XUVXDQW WR D FLUFXODU GDWHG 0DUFK WKH 5%, UHTXLUHV DOO 1%)&V PXVW L PDLQWDLQ D /79 UDWLR QRW
H[FHHGLQJIRUORDQVJUDQWHGDJDLQVWWKHFROODWHUDORIJROGMHZHOOHU\DQGLLGLVFORVHLQWKHLUEDODQFHVKHHW
WKH SHUFHQWDJH RI VXFK ORDQV WR WKHLU WRWDO DVVHWV 7KH DERYHPHQWLRQHG 5%, FLUFXODU DOVR UHTXLUHV 1%)&V
SULPDULO\ HQJDJHG LQ OHQGLQJ DJDLQVW JROG MHZHOOHU\ VXFK ORDQV FRPSULVLQJ RU PRUH RI WKHLU ILQDQFLDO
DVVHWV WR PDLQWDLQ D PLQLPXP 7LHU , FDSLWDO RI E\ $SULO DQG VWLSXODWHV WKDW 1%)&V PXVW QRW
JUDQW DQ\ DGYDQFH DJDLQVW EXOOLRQ RU SULPDU\ JROG DQG JROG FRLQV $V RI 6HSWHPEHU WKH WRWDO ERRN
YDOXH RI JROG ORDQ DVVHWV ZKLFK VWRRG DW ` ODNKV ZDV RI RXU WRWDO ERRN RI ORDQ DVVHWV
)XUWKHUWKH5%,UHOHDVHGDUHSRUWGDWHG-DQXDU\RIWKH³:RUNLQJ*URXSWR6WXG\WKH,VVXHV5HODWHGWR
*ROG,PSRUWVDQG*ROG/RDQ1%)&VLQ,QGLD´ZKLFKFRQWDLQVYDULRXVUHFRPPHQGDWLRQVLQFRQQHFWLRQZLWKWKH
1%)&V RIIHULQJ JROG ORDQV LQWHU DOLD LQFUHDVLQJ WKH UHTXLUHPHQW RI PDLQWHQDQFH RI WKH /79 UDWLR WR UHVWULFWLQJWKH QXPEHURIEUDQFKHV ZKLFKFDQEH VHWXSE\DQ1%)&DORQJ ZLWKWKHUHTXLUHPHQWRI PLQLPXP
OHYHORILQIUDVWUXFWXUHDWHDFKEUDQFKDQGUDWLRQDOL]DWLRQRULPSRVLQJDFDSRQWKHLQWHUHVWUDWHVWREHFKDUJHGRQ
WKH JROG ORDQV RIIHUHG E\ WKH 1%)&V 7KH DERYHPHQWLRQHG UHTXLUHPHQWV RI WKH 5%, DQ\ IXWXUH FKDQJHV LQ
FRQQHFWLRQZLWKWKHUHJXODWLRQRIOHQGLQJDJDLQVWVHFXULW\RIJROGMHZHOOHU\LQFOXGLQJWKRVHUHFRPPHQGHGLQWKH
DIRUHPHQWLRQHGUHSRUWFRXOGDGYHUVHO\LPSDFWRXUORDQVDJDLQVWJROGEXVLQHVVZKLFKFRXOGDGYHUVHO\DIIHFWRXU
JURZWKRSHUDWLRQVSURILWDELOLW\DQGFDVKIORZV
2XULQVXUDQFHFRYHUDJHPD\QRWDGHTXDWHO\SURWHFWXVDJDLQVWORVVHV
:H PDLQWDLQ VXFK LQVXUDQFH FRYHUDJH WKDW ZH EHOLHYH LV DGHTXDWH IRU RXU RSHUDWLRQV 2XU LQVXUDQFH SROLFLHV
KRZHYHU PD\ QRW SURYLGH DGHTXDWH FRYHUDJH LQ FHUWDLQ FLUFXPVWDQFHV DQG DUH VXEMHFW WR FHUWDLQ GHGXFWLEOHV
H[FOXVLRQVDQGOLPLWVRQFRYHUDJH:HFDQQRWKRZHYHUDVVXUH\RXWKDWWKHWHUPVRIRXULQVXUDQFHSROLFLHVZLOO
EHDGHTXDWHWRFRYHUDQ\GDPDJHRUORVVVXIIHUHGE\XVRUWKDWVXFKFRYHUDJHZLOOFRQWLQXHWREHDYDLODEOHRQ
UHDVRQDEOHWHUPVRUZLOOEHDYDLODEOHLQVXIILFLHQWDPRXQWVWRFRYHURQHRUPRUHODUJHFODLPVRUWKDWWKHLQVXUHU
ZLOOQRWGLVFODLPFRYHUDJHDVWRDQ\IXWXUHFODLP)XUWKHUZHDUHFXUUHQWO\LQWKHSURFHVVRIUHQHZLQJFHUWDLQRI
RXULQVXUDQFHSROLFLHV
$VXFFHVVIXODVVHUWLRQRIRQHRUPRUHODUJHFODLPVDJDLQVWXVWKDWH[FHHGVRXUDYDLODEOHLQVXUDQFHFRYHUDJHRU
FKDQJHVLQRXULQVXUDQFHSROLFLHVLQFOXGLQJSUHPLXPLQFUHDVHVRUWKH LPSRVLWLRQRIDODUJHUGHGXFWLEOHRUFR
LQVXUDQFHUHTXLUHPHQWFRXOGDGYHUVHO\DIIHFWRXUEXVLQHVVILQDQFLDOFRQGLWLRQDQGUHVXOWVRIRSHUDWLRQV
0DMRUODSVHVRIFRQWURORUV\VWHPIDLOXUHVFRXOGDGYHUVHO\LPSDFWRXUEXVLQHVV
:HDUHYXOQHUDEOHWRULVNVDULVLQJIURPWKHIDLOXUHRIHPSOR\HHVWRDGKHUHWRDSSURYHGSURFHGXUHVIDLOXUHVRI
VHFXULW\ V\VWHP LQIRUPDWLRQ V\VWHP GLVUXSWLRQV FRPPXQLFDWLRQ V\VWHPV IDLOXUH DQG GDWD LQWHUFHSWLRQ GXULQJ
WUDQVPLVVLRQ WKURXJK H[WHUQDO FRPPXQLFDWLRQ FKDQQHOV DQG QHWZRUNV )DLOXUH WR GHWHFW WKHVH EUHDFKHV LQ
VHFXULW\PD\DGYHUVHO\DIIHFWRXURSHUDWLRQV
:HGRQRWRZQPRVWRIRXUEXVLQHVVRXWOHWVDQGRXUUHJLVWHUHGRIILFH$Q\IDLOXUHRQRXUSDUWWRH[HFXWH
DQGRU UHQHZ OHDVH DJUHHPHQWV DQG SUHPLVH VKDULQJ DJUHHPHQWV LQ FRQQHFWLRQ ZLWK VXFK RIILFHV RU
IDLOXUH WR ORFDWH DOWHUQDWLYH RIILFHV LQ FDVH RI WHUPLQDWLRQ RI VXFK DJUHHPHQWV LQ FRQQHFWLRQ ZLWK DQ\
EXVLQHVVRXWOHWFRXOGDGYHUVHO\DIIHFWRXURSHUDWLRQVDQGSURILWDELOLW\
2XU5HJLVWHUHG2IILFHDQGDOORIRXUEXVLQHVVRXWOHWVDUHORFDWHGRQSUHPLVHVWKDWZHRFFXS\SXUVXDQWWROHDVH
DJUHHPHQWV DQG SUHPLVH VKDULQJ DJUHHPHQWV ,I DQ\ RI WKH RZQHUV RI WKHVH SUHPLVHV GRHV QRW UHQHZ DQ
DJUHHPHQWXQGHUZKLFKZHRFFXS\WKHSUHPLVHVRULIDQ\RIWKHRZQHUVVHHNVWRUHQHZDQDJUHHPHQWRQWHUPV
DQGFRQGLWLRQVXQIDYRUDEOHWRXVZHPD\VXIIHUDGLVUXSWLRQLQRXURSHUDWLRQVRULQFUHDVHGFRVWVRUERWKZKLFK
PD\DGYHUVHO\DIIHFWRXUEXVLQHVVDQGUHVXOWVRIRSHUDWLRQV
2XU 3URPRWHU 'LUHFWRUV DQG UHODWHG HQWLWLHV KDYH LQWHUHVWV LQ D QXPEHU RI HQWLWLHV ZKLFK DUH LQ
EXVLQHVVHVVLPLODUWRRXUVDQGWKLVPD\UHVXOWLQSRWHQWLDOFRQIOLFWVRILQWHUHVWZLWKXV
&HUWDLQGHFLVLRQVFRQFHUQLQJ RXURSHUDWLRQVRUILQDQFLDO VWUXFWXUH PD\SUHVHQWFRQIOLFWV RILQWHUHVWDPRQJRXU
3URPRWHURWKHUVKDUHKROGHUV'LUHFWRUVH[HFXWLYHRIILFHUVDQGWKH1&'+ROGHUV2XU3URPRWHU'LUHFWRUVDQG
UHODWHGHQWLWLHVKDYHLQWHUHVWVLQWKHIROORZLQJHQWLWLHVWKDWDUHHQJDJHGLQEXVLQHVVHVVLPLODUWRRXUV
6KULUDP7UDQVSRUW)LQDQFH&RPSDQ\/LPLWHG
6KULDP$XWRPDOO,QGLD/LPLWHG
6KULUDP(TXLSPHQW)LQDQFH&RPSDQ\/LPLWHG
6KULUDP+RXVLQJ)LQDQFH/LPLWHG
6KULUDP$VVHW0DQDJHPHQW&RPSDQ\/LPLWHG
6KULUDP&UHGLW&RPSDQ\/LPLWHG
6KULUDP)RUWXQH6ROXWLRQV/LPLWHG
6KULUDP:HDOWK$GYLVRUV/LPLWHG
6KULUDP,QVLJKW6KDUH%URNHUV/LPLWHG
,QVLJKW&RPPRGLWLHVDQG)XWXUHV3ULYDWH/LPLWHG
6KULUDP)LQDQFLDO3URGXFW6ROXWLRQV&KHQQDL3ULYDWH/LPLWHG
%KDUDW5HLQVXUDQFH%URNHUV3ULYDWH/LPLWHG
6KULUDP2YHUVHDV,QYHVWPHQWV3ULYDWH/LPLWHG
6KULUDP,QYHVWPHQW+ROGLQJV/LPLWHG
6KULUDP&UHGLW&RPSDQ\/LPLWHG
9LVWDDU)LQDQFLDO6HUYLFHV3ULYDWH/LPLWHG
6KULUDP(TXLSPHQW)LQDQFH&RPSDQ\/LPLWHG
73*&DSLWDO,QGLD3ULYDWH/LPLWHG
37%DQN7DEXQHDQ3HQVLXQDQ1DVLRQDO,QGRQHVLD
7KDL5HWDLO&UHGLW%DQN%DQJNRN
,QWHUQDWLRQDO$VVHW5HFRQVWUXFWLRQ&RPSDQ\3ULYDWH/LPLWHGDQG
,QGLD,QIROLQH$VVHW0DQDJHPHQW&RPSDQ\/LPLWHG
&RPPHUFLDO WUDQVDFWLRQV LQ WKH IXWXUH EHWZHHQ XV DQG UHODWHG SDUWLHV FRXOG UHVXOW LQ FRQIOLFWLQJ LQWHUHVWV $
FRQIOLFW RI LQWHUHVW PD\ RFFXU GLUHFWO\ RU LQGLUHFWO\ EHWZHHQ RXU EXVLQHVV DQG WKH EXVLQHVV RI RXU 3URPRWHU
ZKLFK FRXOG KDYH DQ DGYHUVH DIIHFW RQ RXU RSHUDWLRQV &RQIOLFWV RI LQWHUHVW PD\ DOVR DULVH RXW RI FRPPRQ
EXVLQHVVREMHFWLYHVVKDUHGE\XVRXU3URPRWHU'LUHFWRUVDQGWKHLUUHODWHGHQWLWLHV2XU3URPRWHU'LUHFWRUVDQG
WKHLUUHODWHGHQWLWLHVPD\FRPSHWHZLWKXVDQGKDYHQRREOLJDWLRQWRGLUHFWDQ\RSSRUWXQLWLHVWRXV7KHUHFDQEH
QRDVVXUDQFHWKDWWKHVHRURWKHUFRQIOLFWVRILQWHUHVWZLOOEHUHVROYHGLQDQLPSDUWLDOPDQQHU
5,6.6,15(/$7,21727+(1&'V
7KHUHLVQRJXDUDQWHHWKDWWKH1&'VLVVXHGSXUVXDQWWRWKLV,VVXHZLOOEHOLVWHGRQWKH%6(LQDWLPHO\
PDQQHURUDWDOO
,QDFFRUGDQFHZLWK,QGLDQODZDQGSUDFWLFHSHUPLVVLRQVIRUOLVWLQJDQGWUDGLQJRIWKH1&'VLVVXHGSXUVXDQWWR
WKLV,VVXHZLOOQRWEHJUDQWHGXQWLODIWHUWKH1&'VKDYHEHHQLVVXHGDQGDOORWWHG$SSURYDOIRUOLVWLQJDQGWUDGLQJ
ZLOOUHTXLUHDOOUHOHYDQWGRFXPHQWVDXWKRULVLQJWKHLVVXLQJRI1&'VWREHVXEPLWWHG7KHUHFRXOGEHDIDLOXUHRU
GHOD\LQOLVWLQJWKH1&'VRQWKH%6(
<RX PD\ QRW EH DEOH WR UHFRYHU RQ D WLPHO\ EDVLV RU DW DOO WKH IXOO YDOXH RI WKH RXWVWDQGLQJ DPRXQWV
DQGRUWKHLQWHUHVWDFFUXHGWKHUHRQLQFRQQHFWLRQZLWKWKH1&'V
2XUDELOLW\WRSD\LQWHUHVWDFFUXHGRQWKH 1&'VDQGRUWKHSULQFLSDODPRXQWRXWVWDQGLQJIURPWLPHWRWLPHLQ
FRQQHFWLRQ WKHUHZLWK ZRXOG EH VXEMHFW WR YDULRXV IDFWRUV LQFOXGLQJ LQWHUDOLD RXU ILQDQFLDO FRQGLWLRQ
SURILWDELOLW\DQGWKHJHQHUDOHFRQRPLFFRQGLWLRQVLQ,QGLDDQGLQWKHJOREDOILQDQFLDOPDUNHWV:HFDQQRWDVVXUH
\RXWKDWZHZRXOGEHDEOHWRUHSD\WKHSULQFLSDODPRXQWRXWVWDQGLQJIURPWLPHWRWLPHRQWKH1&'VDQGRUWKH
LQWHUHVWDFFUXHGWKHUHRQLQDWLPHO\PDQQHURUDWDOO$OWKRXJKRXU&RPSDQ\ZLOOFUHDWHDSSURSULDWHVHFXULW\LQ
IDYRXURIWKH'HEHQWXUH7UXVWHHIRUWKHKROGHUVRIWKH1&'VRQWKHDVVHWVDGHTXDWHWRHQVXUHDVVHWFRYHU
IRU WKH 1&'V WKH UHDOL]DEOH YDOXH RI WKH VHFXUHG DVVHWV ZKHQOLTXLGDWHG PD\ EH ORZHU WKDQ WKH RXWVWDQGLQJ
SULQFLSDO DQGRU LQWHUHVW DFFUXHG WKHUHRQ LQ FRQQHFWLRQ ZLWK WKH 1&'V $ IDLOXUH RU GHOD\ WR UHFRYHU WKH
H[SHFWHGYDOXHIURPDVDOHRUGLVSRVLWLRQRIWKHVHFXUHGDVVHWVFRXOGH[SRVH\RXWRDSRWHQWLDOORVV
$Q\GRZQJUDGLQJLQFUHGLWUDWLQJRIRXU1&'VPD\DIIHFWWKHWUDGLQJSULFHRIWKH1&'V
7KH 1&'VSURSRVHGWREH LVVXHGXQGHUWKLV,VVXH KDYH EHHQUDWHGE\ &$5(&$5( KDVDVVLJQHGD UDWLQJRI
µ&$5($$¶WRWKH1&'VYLGHOHWWHUGDWHG0DUFK,QVWUXPHQWVZLWKWKLVUDWLQJDUHFRQVLGHUHGWRKDYH
KLJKGHJUHHRIVDIHW\UHJDUGLQJWLPHO\VHUYLFLQJRIILQDQFLDOREOLJDWLRQV6XFKLQVWUXPHQWVFDUU\YHU\ORZFUHGLW
ULVN
:HFDQQRWJXDUDQWHHWKDWWKLVUDWLQJZLOOQRWEHGRZQJUDGHG7KHUDWLQJVSURYLGHGE\&$5(PD\EHVXVSHQGHG
ZLWKGUDZQRUUHYLVHGDWDQ\WLPH$Q\UHYLVLRQRUGRZQJUDGLQJLQWKHDERYHFUHGLWUDWLQJPD\ORZHUWKHYDOXH
RIWKH1&'VDQGPD\DOVRDIIHFWRXU&RPSDQ\¶VDELOLW\WRUDLVHIXUWKHUGHEW
&KDQJHVLQLQWHUHVWUDWHVPD\DIIHFWWKHSULFHVRIWKH1&'V
$OOVHFXULWLHVZKHUHDIL[HGUDWHRILQWHUHVWLVRIIHUHGVXFKDVWKH1&'VDUHVXEMHFWWRSULFHULVN7KHSULFHRI
VXFKVHFXULWLHVZLOOYDU\LQYHUVHO\ZLWKFKDQJHVLQSUHYDLOLQJLQWHUHVWUDWHVLHZKHQLQWHUHVWUDWHVULVHSULFHVRI
IL[HG LQFRPH VHFXULWLHV IDOO DQG ZKHQ LQWHUHVW UDWHV GURS WKH SULFHV LQFUHDVH 7KH H[WHQW RI IDOO RU ULVH LQ WKH
SULFHV LV D IXQFWLRQ RI WKH H[LVWLQJ FRXSRQ GD\V WR PDWXULW\ DQG WKH LQFUHDVH RU GHFUHDVH LQ WKH OHYHO RI
SUHYDLOLQJ LQWHUHVW UDWHV ,QFUHDVHG UDWHV RI LQWHUHVW ZKLFK IUHTXHQWO\ DFFRPSDQ\ LQIODWLRQ DQGRU D JURZLQJ
HFRQRP\DUHOLNHO\WRKDYHDQHJDWLYHHIIHFWRQWKHSULFHRIWKH1&'V
)DLOXUHWRFRPSO\ZLWKWKHUHTXLUHPHQWVLQFRQQHFWLRQZLWKFUHDWLRQRIDGHTXDWHGHEHQWXUHUHGHPSWLRQ
UHVHUYH³'55´IRUWKH1&'VLVVXHGSXUVXDQWWRWKLV3URVSHFWXVDQGRUEHDEOHWRGHSRVLWRULQYHVWWKH
UHTXLUHG SURSRUWLRQ RI WKH YDOXH RI WKH 1&'V PDWXULQJ HYHU\ \HDU XQWLO DOO 1&'V LVVXHG DQG DOORWWHG
SXUVXDQWWRWKH,VVXHPDWXUHRUDUHUHGHHPHGRWKHUZLVH
$VSHU6HFWLRQ&RIWKH&RPSDQLHV$FW DQ\FRPSDQ\WKDWLQWHQGVWRLVVXHGHEHQWXUHVPXVWFUHDWH D
'55WRZKLFKDGHTXDWHDPRXQWVVKDOOEHFUHGLWHGRXWRIWKHSURILWVRIWKHFRPSDQ\XQWLOWKHUHGHPSWLRQRIWKH
GHEHQWXUHV 7KH JHQHUDO FLUFXODU GDWHG )HEUXDU\ ³&LUFXODU´ LVVXHG E\ WKH 0LQLVWU\ RI &RUSRUDWH
$IIDLUVKDVFODULILHGWKDW
WKHDGHTXDF\
RI'55IRU1%)&VUHJLVWHUHGZLWKWKH5%,XQGHU6HFWLRQO$RIWKH
5%,$PHQGPHQW$FWVKDOOEHRIWKHYDOXHRIGHEHQWXUHVLVVXHGWKURXJKDSXEOLFLVVXHDVSHUWKH
'HEW5HJXODWLRQV7KH&LUFXODUIXUWKHUPDQGDWHVDHYHU\FRPSDQ\WRFUHDWHPDLQWDLQWKHUHTXLUHG'55EHIRUH
WKHWKGD\RI$SULORIHDFK\HDUDQGEGHSRVLWRULQYHVWDVWKHFDVHPD\EHDVXPZKLFKVKDOOQRWEHOHVV
WKDQRIWKHDPRXQWRILWVGHEHQWXUHVPDWXULQJGXULQJWKH\HDUHQGLQJRQWKHVWGD\RI0DUFKIROORZLQJ
7KH DERYHPHQWLRQHG DPRXQW GHSRVLWHG RU LQYHVWHG PXVW QRW EH XWLOL]HG IRU DQ\ SXUSRVH RWKHU WKDQ IRU WKH
UHSD\PHQW RI GHEHQWXUHV PDWXULQJ GXULQJ WKH \HDU SURYLGHG WKDW WKH DPRXQW UHPDLQLQJ GHSRVLWHG RU LQYHVWHG
PXVW QRW DW DQ\ WLPH IDOO EHORZ RI WKH DPRXQW RI GHEHQWXUHV PDWXULQJ GXULQJ WKH SHULRG DV PHQWLRQHG
DERYH )DLOXUH WR FRPSO\ ZLWK WKH UHTXLUHPHQWV LQ FRQQHFWLRQ ZLWK FUHDWLRQ RI DGHTXDWH '55 IRU WKH 1&'V
LVVXHGSXUVXDQWWRWKLV3URVSHFWXVDQGRUEHDEOHWRGHSRVLWRULQYHVWWKHUHTXLUHGSURSRUWLRQRIWKHYDOXHRIWKH
1&'V PDWXULQJ HYHU\ \HDU XQWLO DOO 1&'V LVVXHG DQG DOORWWHG SXUVXDQW WR WKH ,VVXH PDWXUH RU DUH UHGHHPHG
RWKHUZLVH
3D\PHQWVPDGHRQWKH1&'VZLOOEHVXERUGLQDWHGWRFHUWDLQWD[DQGRWKHUOLDELOLWLHVSUHIHUUHGE\ODZ
7KH1&'VZLOOEHVXERUGLQDWHGWRFHUWDLQOLDELOLWLHVSUHIHUUHGE\ODZVXFKDVWRFODLPVRIWKH*R,RQDFFRXQWRI
WD[HV DQG FHUWDLQ OLDELOLWLHV LQFXUUHG LQ WKH RUGLQDU\ FRXUVH RI RXU WUDQVDFWLRQV ,Q SDUWLFXODU LQ WKH HYHQW RI
EDQNUXSWF\OLTXLGDWLRQRUZLQGLQJXSRXUDVVHWVZLOOEHDYDLODEOHWRSD\REOLJDWLRQVRQWKH1&'VRQO\DIWHUDOO
RI WKRVH OLDELOLWLHV WKDW UDQN VHQLRU WR WKHVH 1&'V KDYH EHHQ SDLG ,Q WKH HYHQW RI EDQNUXSWF\ OLTXLGDWLRQ RU
ZLQGLQJXSWKHUHPD\QRWEHVXIILFLHQWDVVHWVUHPDLQLQJDIWHUSD\LQJDPRXQWVUHODWLQJWRWKHVHSURFHHGLQJVWR
SD\DPRXQWVGXHRQWKH1&'V)XUWKHUWKHUHLVQRUHVWULFWLRQRQWKHDPRXQWRIGHEWVHFXULWLHVWKDWZHPD\LVVXH
WKDW PD\UDQNDERYH WKH 1&'V7KH LVVXHRIDQ\ VXFKGHEWVHFXULWLHV PD\UHGXFH WKH DPRXQWUHFRYHUDEOHE\
LQYHVWRUVLQWKH1&'VRQRXUEDQNUXSWF\ZLQGLQJXSRUOLTXLGDWLRQ
<RXPD\EHVXEMHFWWR,QGLDQWD[HVDULVLQJRQVDOHRIWKH1&'V
6DOHV RI 1&'V E\ DQ\ KROGHU PD\ JLYH ULVH WR WD[ OLDELOLW\ LQ ,QGLD )RU GHWDLOV SOHDVH VHH VHFWLRQ WLWOHG
³6WDWHPHQWRI7D[%HQHILWV´RQSDJH
(;7(51$/5,6.6
$VORZGRZQLQHFRQRPLFJURZWKLQ,QGLDDQGFHUWDLQRWKHUFRXQWULHVFRXOGFDXVHRXUEXVLQHVVWRVXIIHU
2XU UHVXOWV RI RSHUDWLRQV DQG ILQDQFLDO FRQGLWLRQ DUH GHSHQGHQW RQ DQG KDYH EHHQ DGYHUVHO\ DIIHFWHG E\
FRQGLWLRQVLQWKH ILQDQFLDO PDUNHWVSDUWLFXODUO\LQ,QGLDDQGWKHFRQGLWLRQLQFOXGLQJWKHXQHYHQUHFRYHU\RI
WKHJOREDOHFRQRP\:HDUHSDUWLFXODUO\VXVFHSWLEOHWRFRQGLWLRQVLQWKHILQDQFLDOPDUNHWVLQ,QGLDZKLFKFRXOG
GLUHFWO\DQGDGYHUVHO\DIIHFWGHPDQGIRUVPDOOHQWHUSULVHILQDQFH3URGXFW)LQDQFHORDQVDJDLQVWJROGYHKLFOHV
DQGYHKLFOHILQDQFLQJDQGRXUDELOLW\WRVHFXUHDGGLWLRQDOILQDQFLQJ
6LQFH$XJXVW,QGLD¶VHFRQRP\KDVEHHQDIIHFWHGE\WKHFXUUHQWJOREDOHFRQRPLFXQFHUWDLQWLHVLQFOXGLQJ
SHULRGV RI YRODWLOLW\ LQ LQWHUHVW UDWHV FXUUHQF\ H[FKDQJH UDWHV FRPPRGLW\ DQG HOHFWULFLW\ SULFHV DGYHUVH
FRQGLWLRQVDIIHFWLQJDJULFXOWXUHDQGRWKHUIDFWRUV7KH,QGLDQHFRQRP\LVFXUUHQWO\LQDVWDWHRIWUDQVLWLRQDQGLW
LVGLIILFXOWWRSUHGLFWWKH LPSDFWRIFHUWDLQ IXQGDPHQWDOHFRQRPLFFKDQJHVRQRXUEXVLQHVV:KLOHWKH FXUUHQW
*RYHUQPHQW KDV HQFRXUDJHG SULYDWH SDUWLFLSDWLRQ LQ YDULRXV VHFWRUV DQ\ DGYHUVH FKDQJH LQ RU IDLOXUH WR
VXFFHVVIXOO\LPSOHPHQWSROLFLHVFRXOGIXUWKHUDGYHUVHO\DIIHFWWKH,QGLDQHFRQRP\
,Q(XURSHHVSHFLDOO\WKH(XUR]RQHODUJHEXGJHWGHILFLWVDQGULVLQJSXEOLFGHEWVKDYHWULJJHUHGVRYHUHLJQGHEW
ILQDQFH FULVHV WKDW UHVXOWHG LQ WKH EDLORXWV RI (XURSHDQ HFRQRPLHV DQG HOHYDWHG WKH ULVN RI JRYHUQPHQW GHEW
GHIDXOWVIRUFLQJJRYHUQPHQWVWRXQGHUWDNHDJJUHVVLYHEXGJHWFXWVDQGDXVWHULW\PHDVXUHVLQWXUQXQGHUVFRULQJ
WKHULVNRIJOREDOHFRQRPLFDQGILQDQFLDOPDUNHWYRODWLOLW\0RUHRYHULQ-DQXDU\WKHVRYHUHLJQUDWLQJRI
YDULRXV(XURSHDQ8QLRQFRXQWULHVZDVGRZQJUDGHG
0RUHRYHUWKHJOREDOHFRQRP\LVFXUUHQWO\LQDVWDWHRIXQHYHQUHFRYHU\7KH8QLWHG6WDWHVFRQWLQXHVWRIDFH
DGYHUVH HFRQRPLF VFHQDULRV DQG VKRXOG D IXUWKHU GRZQJUDGH RI WKH VRYHUHLJQ FUHGLW UDWLQJV RI WKH 86
JRYHUQPHQWRFFXULWLVIRUHVHHDEOHWKDWWKHUDWLQJVDQGSHUFHLYHGFUHGLWZRUWKLQHVVRILQVWUXPHQWVLVVXHGLQVXUHG
RUJXDUDQWHHGE\LQVWLWXWLRQVDJHQFLHVRULQVWUXPHQWDOLWLHVGLUHFWO\OLQNHGWRWKH86JRYHUQPHQWFRXOGDOVREH
FRUUHVSRQGLQJO\DIIHFWHGE\DQ\VXFKGRZQJUDGHZKLFKPD\KDYHDQDGYHUVHDIIHFWRQWKHHFRQRPLFRXWORRN
DFURVVWKHZRUOG
(PHUJLQJDQGGHYHORSLQJHFRQRPLHVKDYHDOVRIDFHGULVNVWRPDFURHFRQRPLFDQGILQDQFLDOVWDELOLW\GXHWRWKH
LQIOX[RIVKRUWWHUPFDSLWDOH[FHVVLYHFXUUHQF\PRYHPHQWVDQGSUHVVXUHVRQJHQHUDODQGDVVHWSULFHLQIODWLRQ
7KHVH KDYH QHFHVVLWDWHG IXUWKHU SROLF\ WLJKWHQLQJ LQWURGXFWLRQ RI OLTXLGLW\ PDQDJHPHQW PHDVXUHV DQG
LPSRVLWLRQRIVRPHIRUPVRIFDSLWDOFRQWUROV
7KH UHVXOWLQJ HFRQRPLF SUHVVXUH RQ WKH HFRQRPLHV LQ ZKLFK ZH RSHUDWH D JHQHUDO ODFN RI FRQILGHQFH LQ WKH
ILQDQFLDOPDUNHWVDQGIHDUVRIDIXUWKHUZRUVHQLQJRIWKHHFRQRP\KDYHDIIHFWHGDQGPD\FRQWLQXHWRDIIHFWWKH
HFRQRPLFFRQGLWLRQVLQVXFKFRXQWULHV:HFDQQRWDVVXUH\RXWKDWWKHPDUNHWVLQZKLFKZHRSHUDWHZLOOXQGHUJR
D IXOO WLPHO\ DQG VXVWDLQDEOH UHFRYHU\ 7KH HFRQRPLF WXUPRLO PD\ FRQWLQXH RU WDNH SODFH LQ WKH IXWXUH
DGYHUVHO\DIIHFWRXUEXVLQHVVUHVXOWVRIRSHUDWLRQVDQGILQDQFLDOFRQGLWLRQ
3ROLWLFDO LQVWDELOLW\ FKDQJHV LQ WKH *RYHUQPHQW RU QDWXUDO FDODPLWLHV PD\ DGYHUVHO\ DIIHFW HFRQRPLF
FRQGLWLRQVLQ,QGLDZKLFKPD\LPSDFWRXUEXVLQHVVILQDQFLDOUHVXOWVDQGUHVXOWVRIRSHUDWLRQV
7KH *RYHUQPHQW KDV WUDGLWLRQDOO\ H[HUFLVHG DQG FRQWLQXHV WR H[HUFLVH LQIOXHQFH RYHU PDQ\ DVSHFWV RI WKH
HFRQRP\ 2XU EXVLQHVV DQG WKH PDUNHW SULFH DQG OLTXLGLW\ RI RXU 1&'V PD\ EH DIIHFWHG E\ LQWHUHVW UDWHV
FKDQJHV LQ *RYHUQPHQW SROLF\ WD[DWLRQ VRFLDO DQG FLYLO XQUHVW DQG RWKHU SROLWLFDO HFRQRPLF RU RWKHU
GHYHORSPHQWV LQ RU DIIHFWLQJ ,QGLD 6LQFH VXFFHVVLYH ,QGLDQ *RYHUQPHQWV KDYH SXUVXHG SROLFLHV RI
HFRQRPLFOLEHUDOL]DWLRQDQGILQDQFLDOVHFWRUUHIRUPV7KHFXUUHQWJRYHUQPHQWLVDFRDOLWLRQRIVHYHUDOSROLWLFDO
SDUWLHV 9DULRXV IDFWRUV LQFOXGLQJ D FROODSVH RI WKH SUHVHQW FRDOLWLRQ JRYHUQPHQW GXH WR WKH ZLWKGUDZDO RI
VXSSRUW RI FRDOLWLRQ PHPEHUV FRXOG WULJJHU VLJQLILFDQW FKDQJHV LQ ,QGLD¶V HFRQRPLF OLEHUDOL]DWLRQ DQG
GHUHJXODWLRQSROLFLHVGLVUXSWEXVLQHVVDQGHFRQRPLFFRQGLWLRQVLQ,QGLDJHQHUDOO\DQGRXUEXVLQHVVLQSDUWLFXODU
2XUILQDQFLDOSHUIRUPDQFHDQGWKHPDUNHWSULFHRIRXU1&'VPD\EHDGYHUVHO\DIIHFWHGE\FKDQJHVLQLQIODWLRQ
H[FKDQJH UDWHV DQG FRQWUROV LQWHUHVW UDWHV *RYHUQPHQW VRFLDO VWDELOLW\ RU RWKHU SROLWLFDO HFRQRPLF RU
GLSORPDWLFGHYHORSPHQWVDIIHFWLQJ,QGLDLQWKHIXWXUH
,QGLD KDV H[SHULHQFHG DQG PD\ FRQWLQXH WR H[SHULHQFH QDWXUDO FDODPLWLHV VXFK DV HDUWKTXDNHV IORRGV DQG
GURXJKW7KHH[WHQWDQGVHYHULW\RIWKHVHQDWXUDOGLVDVWHUVGHWHUPLQHVWKHLUHIIHFWRQWKH,QGLDQHFRQRP\6XFK
QDWXUDOFDODPLWLHVFRXOGKDYHDQHJDWLYHHIIHFWRQWKH,QGLDQHFRQRP\DGYHUVHO\DIIHFWLQJRXUEXVLQHVVDQGWKH
SULFHRIRXU1&'V
7HUURULVWDWWDFNVFRPPXQDOGLVWXUEDQFHVFLYLOXQUHVWDQGRWKHUDFWVRIYLROHQFHRUZDULQYROYLQJ,QGLD
DQGRWKHUFRXQWULHVPD\DGYHUVHO\DIIHFWWKHILQDQFLDOPDUNHWVDQGRXUEXVLQHVV
7HUURULVWDWWDFNVDQGRWKHUDFWVRIYLROHQFHRUZDUPD\DGYHUVHO\DIIHFWWKH,QGLDQPDUNHWVRQZKLFKRXU1&'V
WUDGHDQGDOVRDGYHUVHO\DIIHFW,QGLDQDQGZRUOGZLGHILQDQFLDOPDUNHWV7KHVHDFWVPD\DOVRUHVXOWLQDORVVRI
EXVLQHVVFRQILGHQFHDQGDGYHUVHO\DIIHFWRXUEXVLQHVVILQDQFLDOFRQGLWLRQDQGUHVXOWVRIRSHUDWLRQV,QDGGLWLRQ
DQ\ GHWHULRUDWLRQ LQ UHODWLRQV EHWZHHQ ,QGLD DQG LWV QHLJKERXULQJ FRXQWULHV PLJKW UHVXOW LQ LQYHVWRU FRQFHUQ
DERXWVWDELOLW\LQWKHUHJLRQZKLFKPD\DGYHUVHO\DIIHFWWKHSULFHRIRXU1&'V
,QGLDKDVDOVRZLWQHVVHGFLYLOXQUHVWLQFOXGLQJFRPPXQDOGLVWXUEDQFHVDQGULRWVLQUHFHQW\HDUV,IVXFKHYHQWV
UHFXURXURSHUDWLRQDODQGPDUNHWLQJDFWLYLWLHVPD\EHDGYHUVHO\DIIHFWHGUHVXOWLQJLQDGHFOLQHLQRXULQFRPH
6XFK LQFLGHQWV PD\ DOVR FUHDWH D JUHDWHU SHUFHSWLRQ WKDW LQYHVWPHQW LQ ,QGLDQ FRPSDQLHV LQYROYHV D KLJKHU
GHJUHHRIULVNDQGPD\KDYHDQDGYHUVHLPSDFWRQWKHSULFHRIRXU1&'V
$Q\GRZQJUDGHRIFUHGLWUDWLQJVRI,QGLDPD\DGYHUVHO\DIIHFWRXUDELOLW\WRUDLVHGHEWILQDQFLQJ
,QGLD¶VVRYHUHLJQUDWLQJVUHIOHFWDQDVVHVVPHQWRIWKH,QGLDQJRYHUQPHQW¶VRYHUDOOILQDQFLDOFDSDFLW\WRSD\LWV
REOLJDWLRQVDQGLWVDELOLW\RUZLOOLQJQHVVWRPHHWLWVILQDQFLDOFRPPLWPHQWVDVWKH\EHFRPHGXH1RDVVXUDQFH
FDQ EH JLYHQ WKDW DQ\ VWDWLVWLFDO UDWLQJ RUJDQLVDWLRQ ZLOO QRW GRZQJUDGH WKH FUHGLW UDWLQJV RI ,QGLD $Q\ VXFK
GRZQJUDGH FRXOG DGYHUVHO\ DIIHFW RXU DELOLW\ WR UDLVH DGGLWLRQDO ILQDQFLQJ DQG WKH LQWHUHVW UDWHV DQG RWKHU
FRPPHUFLDO WHUPV DW ZKLFK VXFK DGGLWLRQDO ILQDQFLQJ LV DYDLODEOH 7KLV FRXOG KDYH DQ DGYHUVH HIIHFW RQ RXU
EXVLQHVVDQGILQDQFLDOSHUIRUPDQFH
$ GHFOLQH LQ ,QGLD¶V IRUHLJQ H[FKDQJH UHVHUYHV PD\ DIIHFW OLTXLGLW\ DQG LQWHUHVW UDWHV LQ WKH ,QGLDQ
HFRQRP\ZKLFKFRXOGDGYHUVHO\LPSDFWRXUILQDQFLDOFRQGLWLRQ
7KH GLUHFW DGYHUVH LPSDFW RI WKH JOREDO ILQDQFLDO FULVLV RQ ,QGLD KDV EHHQ WKH UHYHUVDO RI FDSLWDO LQIORZV DQG
GHFOLQHLQH[SRUWVOHDGLQJWRSUHVVXUHVRQWKHEDODQFHRISD\PHQWVDQGDVKDUSGHSUHFLDWLRQRIWKH,QGLDQ5XSHH
YLVjYLVWKH86'ROODU $Q\ LQFUHDVHGLQWHUYHQWLRQE\WKH 5%, LQWKH IRUHLJQH[FKDQJH PDUNHWWRFRQWUROWKH
YRODWLOLW\RIWKHH[FKDQJHUDWHPD\UHVXOWLQDGHFOLQHLQ,QGLD¶VIRUHLJQH[FKDQJHUHVHUYHVDQGUHGXFHGOLTXLGLW\
DQGKLJKHULQWHUHVWUDWHVLQWKH,QGLDQHFRQRP\ZKLFKFRXOGDGYHUVHO\DIIHFWRXUILQDQFLDOFRQGLWLRQ
&RPSDQLHV RSHUDWLQJ LQ ,QGLD DUH VXEMHFW WR D YDULHW\ RI FHQWUDO DQG VWDWH JRYHUQPHQW WD[HV DQG
VXUFKDUJHV
7D[DQGRWKHUOHYLHVLPSRVHGE\WKHFHQWUDODQGVWDWHJRYHUQPHQWVLQ,QGLDWKDWDIIHFWRXUWD[OLDELOLW\LQFOXGH
DPRQJRWKHUVFHQWUDODQGVWDWHWD[HVDQGRWKHUOHYLHVLQFRPHWD[YDOXHDGGHGWD[WXUQRYHUWD[VHUYLFH WD[
VWDPSGXW\DQGRWKHUVSHFLDOWD[HVDQGVXUFKDUJHVLQWURGXFHGRQDWHPSRUDU\RUSHUPDQHQWEDVLV
7KHUHJXODWLRQVJRYHUQLQJFHQWUDODQGVWDWHWD[HVLQ,QGLDDUHH[WHQVLYHDQGVXEMHFWWRFKDQJH)RUH[DPSOHLQ
LWV XQLRQ EXGJHW IRU WKH ILVFDO \HDU WKH *RYHUQPHQW RI ,QGLD SURSRVHG WZR PDMRU UHIRUPV LQ ,QGLDQ WD[
ODZV L WKH JRRGV DQG VHUYLFHV WD[ ZKLFK LV LQWHQGHG WR UHSODFH WKH YDULRXV LQGLUHFW WD[HV RQ JRRGV DQG
VHUYLFHVDQGLLWKHGLUHFWWD[FRGHZKLFKLVLQWHQGHGWRFRQVROLGDWHDQGDPHQGODZVUHODWLQJWRGLUHFWWD[HV,Q
LWV XQLRQ EXGJHW IRU WKH ILVFDO \HDU WKH *RYHUQPHQW RI ,QGLD GLG QRW VHW D GHILQLWLYH WLPHIUDPH IRU
LPSOHPHQWLQJ WKH JRRGV DQG VHUYLFHV WD[ RU WKH GLUHFW WD[ FRGH $V D UHVXOW RI WKHVH DQG RWKHU SURSRVHG
DPHQGPHQWVWRH[LVWLQJRUQHZODZVWKH,QGLDQWD[DWLRQV\VWHPPD\XQGHUJRVLJQLILFDQWUHYLVLRQVWKHORQJ
WHUPHIIHFWVRIZKLFKDUHXQFOHDU0RUHRYHULQWKHIXWXUHWKH*RYHUQPHQWRI,QGLDRUVWDWHJRYHUQPHQWVPD\
LQFUHDVHWKHFRUSRUDWHLQFRPHWD[LPSRVHGRQFRPSDQLHVLQFOXGLQJRXUV
$Q\VXFKIXWXUHLQFUHDVHVLQWD[HVRUDPHQGPHQWVWRWD[UHJXODWLRQVPD\UHVXOWLQWKHLPSRVLWLRQRIVLJQLILFDQW
DGGLWLRQDOWD[HVRUDGYHUVHO\DIIHFWRXUDELOLW\WRFDSLWDOL]HRQH[LVWLQJWD[HIILFLHQFLHVZKLFKFRXOGDGYHUVHO\
DIIHFWRXUEXVLQHVVDQGUHVXOWVRIRSHUDWLRQV
2XUDELOLW\WRUDLVHIRUHLJQFDSLWDOPD\EHFRQVWUDLQHGE\,QGLDQODZ
$VDQ,QGLDQFRPSDQ\ZHDUHVXEMHFWWRH[FKDQJHFRQWUROVWKDWUHJXODWHERUURZLQJLQIRUHLJQFXUUHQFLHV6XFK
UHJXODWRU\UHVWULFWLRQVOLPLWRXUILQDQFLQJVRXUFHVDQGKHQFHFRXOGFRQVWUDLQRXUDELOLW\WRREWDLQILQDQFLQJRQ
FRPSHWLWLYH WHUPV DQG UHILQDQFH H[LVWLQJ LQGHEWHGQHVV ,Q DGGLWLRQ ZH FDQQRW DVVXUH \RX WKDW WKH UHTXLUHG
DSSURYDOVZLOOEHJUDQWHGWRXVZLWKRXWRQHURXVFRQGLWLRQVRUDWDOO7KHOLPLWDWLRQVRQIRUHLJQGHEWPD\KDYH
DQDGYHUVHHIIHFWRQRXUEXVLQHVVJURZWKILQDQFLDOFRQGLWLRQDQGUHVXOWVRIRSHUDWLRQV
$QRXWEUHDNRIDQLQIHFWLRXVGLVHDVH RUDQ\RWKHUVHULRXVSXEOLFKHDOWKFRQFHUQVLQ$VLDRUHOVHZKHUH
FRXOGKDYHDQDGYHUVHHIIHFWRQRXUEXVLQHVVDQGUHVXOWVRIRSHUDWLRQV
7KH RXWEUHDN RI DQ LQIHFWLRXV GLVHDVH LQ $VLD RU HOVHZKHUH RU DQ\ RWKHU VHULRXV SXEOLF KHDOWK FRQFHUQV FRXOG
KDYHDQHJDWLYHHIIHFWRQWKHHFRQRPLHVILQDQFLDOPDUNHWVDQGEXVLQHVVDFWLYLWLHVLQWKHFRXQWULHVLQZKLFKRXU
HQGPDUNHWVDUHORFDWHGZKLFKFRXOGKDYHDQDGYHUVHHIIHFWRQRXUEXVLQHVV:HFDQJLYHQRDVVXUDQFHWKDWD
IXWXUHRXWEUHDNRIDQLQIHFWLRXVGLVHDVHDPRQJKXPDQVRUDQLPDOVRUDQ\RWKHUVHULRXVSXEOLFKHDOWKFRQFHUQV
ZLOOQRWKDYHDQDGYHUVHHIIHFWRQRXUEXVLQHVV
2XUWUDQVLWLRQWRWKHXVHRIWKH,)56FRQYHUJHG,QGLDQ$FFRXQWLQJ6WDQGDUGVPD\DGYHUVHO\DIIHFWRXU
ILQDQFLDOFRQGLWLRQDQGUHVXOWVRIRSHUDWLRQV
2Q)HEUXDU\WKH0LQLVWU\RI&RUSRUDWH$IIDLUV*RYHUQPHQWRI,QGLD³0&$´QRWLILHGWKDWWKH,)56
FRQYHUJHG,QGLDQ $FFRXQWLQJ6WDQGDUGV³,1' $6´ ZLOO EHLPSOHPHQWHGLQD SKDVHGPDQQHUDQGVWDWHGWKDW
WKHGDWHRILPSOHPHQWDWLRQRI,1'$6ZLOOEHQRWLILHGE\WKH0&$DWDODWHUGDWH7KHUHLVQRVLJQLILFDQWERG\
RI HVWDEOLVKHG SUDFWLFH RQ ZKLFK WR GUDZ IURP LQ IRUPLQJ MXGJPHQWV UHJDUGLQJ WKH LPSOHPHQWDWLRQ DQG
DSSOLFDWLRQRI,1'$6$GGLWLRQDOO\,1'$6KDVIXQGDPHQWDOGLIIHUHQFHVZLWK,)56DQGDVDUHVXOWILQDQFLDO
VWDWHPHQWV SUHSDUHG XQGHU ,1' $6 PD\ EH VXEVWDQWLDOO\ GLIIHUHQW IURP ILQDQFLDO VWDWHPHQWV SUHSDUHG XQGHU
,)56$V ZHDGRSW,1'$6UHSRUWLQJZHPD\HQFRXQWHUGLIILFXOWLHVLQWKHRQJRLQJSURFHVVRILPSOHPHQWLQJ
DQG HQKDQFLQJ RXU PDQDJHPHQW LQIRUPDWLRQ V\VWHPV 0RUHRYHU WKHUH LV LQFUHDVLQJ FRPSHWLWLRQ IRU WKH VPDOO
QXPEHU RI ,)56H[SHULHQFHG DFFRXQWLQJ SHUVRQQHO DYDLODEOH DV ,QGLDQ FRPSDQLHV EHJLQ WR SUHSDUH ,1' $6
ILQDQFLDOVWDWHPHQWV7KHDGRSWLRQRI,1'$6E\XVDQGDQ\IDLOXUHWRVXFFHVVIXOO\DGRSW,1'$6LQDFFRUGDQFH
ZLWKWKHSUHVFULEHGWLPHOLQHVFRXOGUHVXOWLQRSHUDWLRQDOGHOD\VDQGUHVXOWLQJSHQDOWLHV
,QGLDQ FRUSRUDWH DQG RWKHU GLVFORVXUH DQG DFFRXQWLQJ VWDQGDUGV GLIIHU IURP WKRVH REVHUYHG LQ RWKHU
MXULVGLFWLRQVVXFKDV86*$$3DQG,)56
2XU ILQDQFLDO VWDWHPHQWV DUH SUHSDUHG LQ DFFRUGDQFH ZLWK ,QGLDQ *$$3 ZKLFK GLIIHUV LQ VLJQLILFDQW UHVSHFWV
IURP86*$$3DQG,)56 $VD UHVXOW RXUILQDQFLDO VWDWHPHQWVDQGUHSRUWHGHDUQLQJVFRXOGEHVLJQLILFDQWO\
GLIIHUHQW IURP WKRVH ZKLFK ZRXOG EH UHSRUWHG XQGHU 86 *$$3 RU ,)56 ZKLFK PD\ EH PDWHULDO WR \RXU
FRQVLGHUDWLRQRIWKHILQDQFLDOLQIRUPDWLRQSUHSDUHGDQGSUHVHQWHGLQDFFRUGDQFHZLWK,QGLDQ*$$3FRQWDLQHGLQ
WKLV 3URVSHFWXV <RX VKRXOG UHO\ RQ \RXU RZQ H[DPLQDWLRQ RI RXU &RPSDQ\ WKH WHUPV RI WKH ,VVXH DQG WKH
ILQDQFLDOLQIRUPDWLRQFRQWDLQHGLQWKLV3URVSHFWXV
3URPLQHQW1RWHV
7KLVLVDSXEOLFLVVXHRI1&'VDJJUHJDWLQJXSWR `ODNKVZLWKDQRSWLRQWRUHWDLQRYHUVXEVFULSWLRQ
XSWR`ODNKVIRULVVXDQFHRIDGGLWLRQDO1&'VDJJUHJDWLQJWRDWRWDORIXSWR`ODNKV
)RU GHWDLOV RQ WKH LQWHUHVW RI RXU &RPSDQ\
V 'LUHFWRUV VHH WKH VHFWLRQV WLWOHG 2XU 0DQDJHPHQW DQG
&DSLWDO6WUXFWXUHEHJLQQLQJDWSDJHVDQGUHVSHFWLYHO\
2XU&RPSDQ\KDVHQWHUHGLQWRFHUWDLQUHODWHGSDUW\WUDQVDFWLRQVZLWKLQWKHPHDQLQJRI$6DVQRWLILHGE\
WKH &RPSDQLHV $FFRXQWLQJ 6WDQGDUGV 5XOHV DV GLVFORVHG LQ WKH VHFWLRQ WLWOHG )LQDQFLDO
6WDWHPHQWVEHJLQQLQJRQSDJH
$Q\FODULILFDWLRQRULQIRUPDWLRQUHODWLQJWRWKH,VVXHVKDOOEHPDGHDYDLODEOHE\WKH/HDG0DQDJHUVDQGRXU
&RPSDQ\ WR WKH LQYHVWRUV DW ODUJH DQG QR VHOHFWLYH RU DGGLWLRQDO LQIRUPDWLRQ ZRXOG EH DYDLODEOH IRU D
VHFWLRQRILQYHVWRUVLQDQ\PDQQHUZKDWVRHYHU
,QYHVWRUV PD\ FRQWDFW WKH 5HJLVWUDU WR WKH ,VVXH &RPSOLDQFH 2IILFHU DQG WKH /HDG 0DQDJHUV IRU DQ\
FRPSODLQWVSHUWDLQLQJWRWKH,VVXH,QFDVHRIDQ\VSHFLILFTXHULHVRQDOORWPHQWUHIXQG,QYHVWRUPD\FRQWDFW
WKH5HJLVWUDUWRWKH,VVXH
,QWKHHYHQWRIRYHUVXEVFULSWLRQWRWKH,VVXHDOORFDWLRQRI1&'VZLOOEHDVSHUWKH³%DVLVRI$OORWPHQW´VHW
RXWRQSDJH
2XU(TXLW\6KDUHVDUHOLVWHGRQWKH16(%6(DQG06(2XUQRQFRQYHUWLEOHGHEHQWXUHVLVVXHGSXUVXDQWWR
SUHYLRXVSXEOLFLVVXHVDUHOLVWHGRQ%6(DQG16(
$VRI6HSWHPEHUZHKDGFHUWDLQFRQWLQJHQWOLDELOLWLHVQRWSURYLGHGIRUDPRXQWLQJWR `
ODNKV)RUIXUWKHULQIRUPDWLRQRQVXFKFRQWLQJHQWOLDELOLWLHVSOHDVHVHHVHFWLRQWLWOHG³)LQDQFLDO6WDWHPHQWV´
RQSDJH
)RUIXUWKHULQIRUPDWLRQUHODWLQJWRFHUWDLQVLJQLILFDQWOHJDOSURFHHGLQJVWKDWZHDUHLQYROYHGLQSOHDVHVHH
VHFWLRQWLWOHG³2XWVWDQGLQJ/LWLJDWLRQDQG0DWHULDO'HYHORSPHQWV´RQSDJH
7+(,668(
7KHIROORZLQJLVDVXPPDU\RIWKHWHUPVRIWKH1&'V7KLVVHFWLRQVKRXOGEHUHDGLQFRQMXQFWLRQZLWKDQGLV
TXDOLILHGLQLWVHQWLUHW\E\PRUHGHWDLOHGLQIRUPDWLRQLQWKHVHFWLRQHQWLWOHG³7HUPVRIWKH,VVXH´RQSDJH
&200217(506)25$//6(5,(62)7+(1&'V
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
6HFXUHGUHGHHPDEOHQRQFRQYHUWLEOHGHEHQWXUHVRIRXU&RPSDQ\RIIDFHYDOXHRI`HDFK
6HFXUHG
6HQLRU
3XEOLFLVVXH
6HHWKHVHFWLRQWLWOHG³,VVXH3URFHGXUH±:KRFDQDSSO\´RQSDJH
7KH1&'VVKDOOEHOLVWHGRQWKH%6(ZLWKLQ:RUNLQJ'D\VIURPWKH,VVXH&ORVXUH'DWH
µ&$5($$¶IURP&$5(
,QVWUXPHQWV ZLWK WKLV UDWLQJ DUH FRQVLGHUHG WR KDYH KLJK GHJUHH RI VDIHW\ UHJDUGLQJ WLPHO\
VHUYLFLQJRIILQDQFLDOREOLJDWLRQV6XFKLQVWUXPHQWVFDUU\YHU\ORZFUHGLWULVN)RUWKHUDWLRQDOH
RIWKLVUDWLQJVHH$QQH[XUH%RQSDJH
`ODNKV
UHWDLQ 8SWR`ODNKVIRULVVXDQFHRIDGGLWLRQDO1&'V
,VVXHU
7\SHRILQVWUXPHQW
1DWXUHRILQVWUXPHQW
6HQLRULW\
0RGHRILVVXH
(OLJLEOH,QYHVWRUV
/LVWLQJ
5DWLQJ
RI
WKH
LQVWUXPHQW
,VVXHVL]H
2SWLRQ
WR
RYHUVXEVFULSWLRQ
2EMHFWVRIWKH,VVXH
'HWDLOV RI XWLOLVDWLRQ RI
SURFHHGV
&RXSRQUDWH
6WHS XS VWHS GRZQ
FRXSRQUDWHV
&RXSRQ
SD\PHQW
IUHTXHQF\
&RXSRQSD\PHQWGDWHV
&RXSRQW\SH
'HIDXOWLQWHUHVW
'D\FRXQWEDVLV
,QWHUHVW RQ $SSOLFDWLRQ
$PRXQWV
7HQXUH
5HGHPSWLRQ'DWHV
5HGHPSWLRQ$PRXQW
6HHWKHVHFWLRQWLWOHG³2EMHFWVRIWKH,VVXH´RQSDJH
6HHWKHVHFWLRQWLWOHG³2EMHFWVRIWKH,VVXH´RQSDJH
6HHWKHVHFWLRQWLWOHG³7HUPVRIWKH,VVXH±,QWHUHVW´RQSDJH
6HHWKHVHFWLRQWLWOHG³7HUPVRIWKH,VVXH±,QWHUHVW´RQSDJH
6HHWKHVHFWLRQWLWOHG³7HUPVRIWKH,VVXH±,QWHUHVW´RQSDJH
6HHWKHVHFWLRQWLWOHG³7HUPVRIWKH,VVXH±3D\PHQWRI,QWHUHVWRQ1&'V´RQSDJH
)L[HG
6HHWKHVHFWLRQWLWOHG³7HUPVRIWKH,VVXH±(YHQWVRI'HIDXOW´RQSDJH
$FWXDODFWXDO)RUIXUWKHUGHWDLOVVHHWKHVHFWLRQWLWOHG³7HUPVRIWKH,VVXH´RQSDJH
6HHWKHVHFWLRQWLWOHG³7HUPVRIWKH,VVXH±,QWHUHVWRQ$SSOLFDWLRQ$PRXQWV´RQSDJH
6HHWKHVXEVHFWLRQWLWOHG³±6SHFLILF7HUPVIRUHDFK6HULHVRI1&'V´RQSDJH
6HHWKHVXEVHFWLRQWLWOHG³±6SHFLILF7HUPVIRUHDFK6HULHVRI1&'V´RQSDJH
,QUHVSHFWRI1&'V$OORWWHGWRDQ1&'+ROGHUWKHIDFHYDOXHRIWKH1&'VDORQJZLWKLQWHUHVW
WKDWPD\KDYHDFFUXHGDVRQWKH5HGHPSWLRQ'DWH
,VVXH3ULFHLQ`
`
`
)DFH9DOXHLQ``
`
0LQLPXP DSSOLFDWLRQ ` 1&'V IRU DOO VHULHV RI 1&'V QDPHO\ 6HULHV , 6HULHV ,, 6HULHV ,,, 6HULHV ,9
6HULHV9DQG6HULHV9,HLWKHUWDNHQLQGLYLGXDOO\RUFROOHFWLYHO\
VL]H
7KHPLQLPXPQXPEHURI1&'VSHU$SSOLFDWLRQ)RUPZLOOEHFDOFXODWHGRQWKHEDVLVRIWKHWRWDO
QXPEHU RI 1&'V DSSOLHG IRU XQGHU HDFK VXFK $SSOLFDWLRQ )RUP DQG QRW RQ WKH EDVLV RI DQ\
VSHFLILFRSWLRQ
$SULO
,VVXHRSHQLQJGDWH
0D\
,VVXHFORVLQJGDWH
7KH ,VVXH VKDOO UHPDLQ RSHQ IRU VXEVFULSWLRQ IURP DP WLOO 30 ,QGLDQ 6WDQGDUG
7LPH IRU WKH SHULRG PHQWLRQHG DERYH ZLWK DQ RSWLRQ IRU HDUO\ FORVXUH RU H[WHQVLRQ E\ VXFK
SHULRGDVPD\EHGHFLGHGE\WKH%RDUGRI'LUHFWRUVRUDGXO\FRQVWLWXWHGFRPPLWWHHWKHUHRI,Q
WKHHYHQWRIVXFKHDUO\FORVXUHRUH[WHQVLRQRIWKHVXEVFULSWLRQOLVWRIWKH,VVXHRXU&RPSDQ\
VKDOOHQVXUHWKDWSXEOLFQRWLFHRIVXFKHDUO\FORVXUHRUH[WHQVLRQLVSXEOLVKHGRQRUEHIRUHWKH
GD\RIVXFKHDUO\GDWHRIFORVXUHRU,VVXH&ORVLQJ'DWHWKURXJKDGYHUWLVHPHQWVLQDWOHDVWRQH
OHDGLQJQDWLRQDOGDLO\QHZVSDSHU
7KHHQWLUH$SSOLFDWLRQ$PRXQWLVSD\DEOHRQWKHGDWHRI$SSOLFDWLRQ
3D\LQGDWH
'HHPHG
GDWH
RI 7KHGDWHRILVVXHRIWKH$OORWPHQW$GYLFHRUVXFKGDWHDVPD\EHGHWHUPLQHGE\WKH%RDUGRUD
GXO\FRQVWLWXWHGFRPPLWWHHWKHUHRIDQGQRWLILHGWRWKH%6($OOEHQHILWVUHODWLQJWRWKH1&'V
$OORWPHQW
LQFOXGLQJ LQWHUHVW RQ WKH 1&'V VKDOO EH DYDLODEOH WR WKH LQYHVWRUV IURP WKH 'HHPHG 'DWH RI
$OORWPHQW7KHDFWXDO$OORWPHQWRI1&'VPD\WDNHSODFHRQDGDWHRWKHUWKDQWKH'HHPHG'DWH
RI$OORWPHQW
,VVXDQFH PRGH RI WKH 'HPDWHULDOLVHGIRUPRUSK\VLFDOIRUPDVVSHFLILHGE\DQ$SSOLFDQWLQWKH$SSOLFDWLRQ)RUP
LQVWUXPHQW
,QGHPDWHULDOLVHGIRUPRQO\
7UDGLQJ
16'/DQG&'6/
'HSRVLWDULHV
%XVLQHVV
GD\ 6HHWKHVHFWLRQWLWOHG³7HUPVRIWKH,VVXH±(IIHFWRIKROLGD\VRQSD\PHQWV´RQSDJH
FRQYHQWLRQ
ILIWHHQ GD\V SULRU WR WKH UHOHYDQW LQWHUHVW SD\PHQW GDWH RU UHOHYDQW 5HGHPSWLRQ 'DWH IRU
5HFRUG'DWH
1&'VLVVXHGXQGHUWKLV3URVSHFWXV,QWKHHYHQWWKH5HFRUG'DWHIDOOVRQD6DWXUGD\6XQGD\RU
D SXEOLF KROLGD\ LQ &KHQQDL RU DQ\ RWKHU SD\PHQW FHQWUH QRWLILHG LQ WHUPV RI WKH 1HJRWLDEOH
,QVWUXPHQWV$FWWKHVXFFHHGLQJ%XVLQHVV'D\ZLOOEHFRQVLGHUHGDVWKH5HFRUG'DWH
7KH SULQFLSDO DPRXQW RI WKH 1&'V WR EH LVVXHG LQ WHUPV RI WKLV 3URVSHFWXV WRJHWKHU ZLWK DOO
6HFXULW\
LQWHUHVWGXHRQWKH1&'VDVZHOODVDOOFRVWVFKDUJHVDOOIHHVUHPXQHUDWLRQRIWKH'HEHQWXUH
7UXVWHH DQG H[SHQVHV SD\DEOH LQ UHVSHFW WKHUHRI E\ ZD\ RI D ILUVW DQG H[FOXVLYH FKDUJH RQ
VSHFLILHG IXWXUH UHFHLYDEOHV RI RXU &RPSDQ\ LQ IDYRXU RI WKH 'HEHQWXUH 7UXVWHH DQG D SDUL
SDVVXFKDUJHRQLGHQWLILHGLPPRYDEOHSURSHUW\RIRXU&RPSDQ\DVPD\EHGHFLGHGPXWXDOO\E\
RXU&RPSDQ\DQGWKH'HEHQWXUH7UXVWHH
7UDQVDFWLRQGRFXPHQWV 7KH 'UDIW 3URVSHFWXV WKLV3URVSHFWXV UHDG ZLWK DQ\ QRWLFHV FRUULJHQGD DGGHQGD WKHUHWR WKH
'HEHQWXUH7UXVW'HHGDQGRWKHUVHFXULW\GRFXPHQWVLIDSSOLFDEOHDQGYDULRXVRWKHUGRFXPHQWV
DJUHHPHQWVXQGHUWDNLQJVHQWHUHGRUWREHHQWHUHGE\WKH&RPSDQ\ZLWK/HDG0DQDJHUVDQGRU
RWKHU LQWHUPHGLDULHV IRU WKH SXUSRVH RI WKLV ,VVXH LQFOXGLQJ EXW QRW OLPLWHG WR WKH 'HEHQWXUH
7UXVW 'HHG WKH 'HEHQWXUH 7UXVWHH $JUHHPHQW WKH (VFURZ $JUHHPHQW WKH 0HPRUDQGXP RI
8QGHUVWDQGLQJ ZLWK WKH 5HJLVWUDU DQG WKH 0HPRUDQGXP RI 8QGHUVWDQGLQJ ZLWK WKH /HDG
0DQDJHUV
6HHWKHVHFWLRQWLWOHG³7HUPVRIWKH,VVXH±(YHQWVRI'HIDXOW´RQSDJH
(YHQWVRIGHIDXOW
&URVV
GHIDXOW 1$
SURYLVLRQV
5ROHVDQGUHVSRQVLELOLW\ 6HHWKHVHFWLRQWLWOHG³7HUPVRIWKH,VVXH±'HEHQWXUH7UXVWHH´RQSDJH
RI
WKH
'HEHQWXUH
7UXVWHH
*RYHUQLQJ ODZ DQG 7KH1&'VDUHJRYHUQHGE\DQGVKDOOEHFRQVWUXHGLQDFFRUGDQFHZLWKWKHH[LVWLQJ,QGLDQODZV
$Q\GLVSXWHEHWZHHQWKH&RPSDQ\DQGWKH1&'+ROGHUVZLOOEHVXEMHFWWRWKHMXULVGLFWLRQRI
MXULVGLFWLRQ
FRPSHWHQWFRXUWVLQ&KHQQDL
$WOHDVWRIWKHRXWVWDQGLQJ1&'VDWDQ\SRLQWRIWLPH
6HFXULW\FRYHU
*'$7UXVWHHVKLS/LPLWHG
'HEHQWXUH7UXVWHH
6KULUDP,QVLJKW6KDUH%URNHUV/LPLWHG
5HJLVWUDU
7KURXJK YDULRXV DYDLODEOH PRGHV DV GHWDLOHG LQ WKH VHFWLRQ WLWOHG ³,VVXH 3URFHGXUH ±3D\PHQW
0RGHVRISD\PHQW
,QVWUXFWLRQV´RQSDJH
,&,&,6HFXULWLHV/LPLWHGDQG$.&DSLWDO6HUYLFHV/LPLWHG
/HDG0DQDJHUV
63(&,),&7(506)25($&+6(5,(62)1&'V
7KHWHUPVRIHDFK6HULHVRI1&'VDUHVHWRXWEHORZ
6HULHV
)UHTXHQF\RI
LQWHUHVW
SD\PHQW
0LQLPXP
DSSOLFDWLRQ
,QPXOWLSOHVRI
,
$QQXDO
,,
$QQXDO
,,,
$QQXDO
,9
9
9,
` 1&'VIRUDOO VHULHVRI1&'VQDPHO\ 6HULHV,6HULHV,,6HULHV,,,6HULHV ,96HULHV9DQG
6HULHV9,HLWKHUWDNHQLQGLYLGXDOO\RUFROOHFWLYHO\
`2QH `2QH
`2QH
`2QH
`2QH
`2QH
1&'
1&'
1&'
1&'
1&'
1&'
`
`
`
`
`
`
)DFHYDOXHRI
1&'V
`1&'
,VVXH3ULFH`
`
`
1&'
7KURXJKYDULRXV 7KURXJKYDULRXV
0RGHRI
RSWLRQVDYDLODEOH RSWLRQVDYDLODEOH
LQWHUHVW
SD\PHQW
&RXSRQ UDWH
SHU
DQQXP
IRU
1&' +ROGHUV
LQ&DWHJRU\,
`
`
`
`
7KURXJKYDULRXV
RSWLRQV
DYDLODEOH
1RWDSSOLFDEOH
1RWDSSOLFDEOH
1RWDSSOLFDEOH
-
-
-
6HULHV
&RXSRQ UDWH
SHU
DQQXP
IRU
1&' +ROGHUV
LQ&DWHJRU\,,
&RXSRQ UDWH
SHU
DQQXP
IRU
1&' +ROGHUV
LQ &DWHJRU\
,,,
(IIHFWLYH \LHOG
SHU DQQXP
IRU
1&'
+ROGHUV
LQ
&DWHJRU\,
(IIHFWLYH \LHOG
SHU DQQXP
IRU
1&'
+ROGHUV
LQ
&DWHJRU\,,
(IIHFWLYH \LHOG
SHU DQQXP
IRU
1&'
+ROGHUV
LQ
&DWHJRU\,,,
7HQXUH
5HGHPSWLRQ
GDWH
5HGHPSWLRQ
DPRXQWSHU
1&'
5HFRUG'DWH
,
,,
,,,
,9
-
9
-
9,
-
-
-
-
7ZHQW\IRXU
PRQWKV
7ZHQW\IRXU
PRQWKVIURP
WKH'HHPHG
'DWHRI
$OORWPHQW
5HSD\PHQWRI
WKHIDFHYDOXH
SOXVDQ\
LQWHUHVWWKDW
PD\KDYH
DFFUXHGDWWKH
5HGHPSWLRQ
'DWH
7KLUW\6L[
PRQWKV
7KLUW\VL[
PRQWKVIURP
WKH'HHPHG
'DWHRI
$OORWPHQW
5HSD\PHQWRI
WKHIDFHYDOXH
SOXVDQ\
LQWHUHVWWKDW
PD\KDYH
DFFUXHGDWWKH
5HGHPSWLRQ
'DWH
6L[W\PRQWKV
ILIWHHQ
GD\V SULRU WR
WKH UHOHYDQW
LQWHUHVW
SD\PHQW GDWH
RU UHOHYDQW
5HGHPSWLRQ
'DWH
IRU
1&'V
ILIWHHQ
GD\V SULRU WR
WKH UHOHYDQW
LQWHUHVW
SD\PHQW GDWH
RU UHOHYDQW
5HGHPSWLRQ
'DWH
IRU
1&'V
7ZHQW\IRXU
PRQWKV
7ZHQW\IRXU
PRQWKVIURP
WKH'HHPHG
'DWHRI
$OORWPHQW
)RU&DWHJRU\,
1&'+ROGHUV
`SHU
1&'
)RU&DWHJRU\,,
1&'+ROGHUV
`SHU
1&'
)RU&DWHJRU\
,,,1&'
+ROGHUV`
SHU
1&'
ILIWHHQ
GD\V SULRU WR
WKH
5HGHPSWLRQ
'DWHIRU1&'V
6L[W\PRQWKV
IURPWKH
'HHPHG'DWH
RI$OORWPHQW
5HSD\PHQWRI
WKHIDFHYDOXH
SOXVDQ\
LQWHUHVWWKDW
PD\KDYH
DFFUXHGDWWKH
5HGHPSWLRQ
'DWH
ILIWHHQ
GD\V SULRU WR
WKH
UHOHYDQW
LQWHUHVW
SD\PHQW GDWH
RU
UHOHYDQW
5HGHPSWLRQ
'DWHIRU1&'V
7KLUW\6L[
6L[W\PRQWKV
PRQWKV
7KLUW\VL[
6L[W\PRQWKV
PRQWKVIURP IURPWKH'HHPHG
WKH'HHPHG 'DWHRI$OORWPHQW
'DWHRI
$OORWPHQW
)RU&DWHJRU\, )RU&DWHJRU\,
1&'+ROGHUV 1&'+ROGHUV`
`SHU SHU
1&'
1&'
)RU&DWHJRU\,, )RU&DWHJRU\,,
1&'+ROGHUV 1&'+ROGHUV`
`SHU SHU
1&'
1&'
)RU&DWHJRU\ )RU&DWHJRU\,,,
,,,1&'
1&'+ROGHUV`
+ROGHUV`
SHU
SHU
1&'
1&'
ILIWHHQ ILIWHHQ GD\V
GD\V SULRU WR SULRU WR WKH
WKH
5HGHPSWLRQ'DWH
5HGHPSWLRQ IRU1&'V
'DWH
IRU
1&'V
2XU&RPSDQ\VKDOODOORFDWHDQG$OORW1&'VRI6HULHV9,WRDOOYDOLGDSSOLFDWLRQVZKHUHLQWKH$SSOLFDQWVKDYHQRWLQGLFDWHGWKHLUFKRLFHRI
WKHUHOHYDQW1&'VHULHV
)RUYDULRXVPRGHVRILQWHUHVWSD\PHQWVHHWKHVHFWLRQWLWOHG³7HUPVRIWKH,VVXH±0RGHVRI3D\PHQW´RQSDJH
6XEMHFWWRDSSOLFDEOHWD[HVGHGXFWHGDWVRXUFHLIDQ\
6800$5<),1$1&,$/,1)250$7,21
7KHIROORZLQJWDEOHVVHWIRUWKVXPPDU\ILQDQFLDOLQIRUPDWLRQGHULYHGIURPRXUILQDQFLDOLQIRUPDWLRQIRUWKH VL[
PRQWKV HQGHG 6HSWHPEHU DQG WKH \HDUV HQGHG 0DUFK DQG 7KH
VXPPDU\ILQDQFLDOLQIRUPDWLRQSUHVHQWHGEHORZVKRXOGEHUHDGLQFRQMXQFWLRQZLWKWKHVHFWLRQWLWOHG³$QQH[XUH
$±)LQDQFLDO6WDWHPHQWV´RQSDJH
6QR
3DUWLFXODUV
3DJH
5HIRUPDWWHGXQFRQVROLGDWHGVXPPDU\VWDWHPHQWRIDVVHWVDQGOLDELOLWLHVDVDW0DUFK 6
5HIRUPDWWHGXQFRQVROLGDWHGVXPPDU\VWDWHPHQWRISURILWDQGORVVDVDW0DUFK
6
5HIRUPDWWHGXQFRQVROLGDWHGVXPPDU\RIFDVKIORZVWDWHPHQWDVDW0DUFK
6
5HIRUPDWWHGFRQVROLGDWHGEDODQFHVKHHWDVDW0DUFK
6
5HIRUPDWWHGFRQVROLGDWHGVWDWHPHQWRISURILWDQGORVVDVDW0DUFK
6
5HIRUPDWWHGFRQVROLGDWHGFDVKIORZVWDWHPHQWDVDW0DUFK
6
5HIRUPDWWHGXQFRQVROLGDWHGEDODQFHVKHHWDVDW6HSWHPEHU
6
5HIRUPDWWHGXQFRQVROLGDWHGVWDWHPHQWRISURILWDQGORVVDVDW6HSWHPEHU
6
5HIRUPDWWHGXQFRQVROLGDWHGFDVKIORZVWDWHPHQWDVDW6HSWHPEHU
6
5HIRUPDWWHGFRQVROLGDWHGEDODQFHVKHHWDVDW6HSWHPEHU
6
5HIRUPDWWHGVWDWHPHQWRIFRQVROLGDWHGSURILWDQGORVVDVDW6HSWHPEHU
6
5HIRUPDWWHGFRQVROLGDWHGFDVKIORZVWDWHPHQWDVDW6HSWHPEHU
6
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
` LQODFV
3DUWLFXODUV
$VDW0DUFK
(TXLW\DQG/LDELOLWLHV
$6KDUHKROGHUV¶IXQGV
D6KDUHFDSLWDO
7RWDO1RQFXUUHQWOLDELOLWLHV
'&XUUHQWOLDELOLWLHV
D6KRUWWHUPERUURZLQJV
E2WKHUFXUUHQWOLDELOLWLHV
E5HVHUYHVDQGVXUSOXV
F0RQH\UHFHLYHGDJDLQVWVKDUH
ZDUUDQWV
7RWDO6KDUHKROGHUV¶IXQGV
%6KDUHDSSOLFDWLRQPRQH\
SHQGLQJDOORWPHQW
&1RQFXUUHQWOLDELOLWLHV
D/RQJWHUPERUURZLQJV
E2WKHUORQJWHUPERUURZLQJV
F/RQJWHUPSURYLVLRQV
F6KRUWWHUPSURYLVLRQV
7RWDO&XUUHQWOLDELOLWLHV
(7RWDO(TXLW\DQG/LDELOLWLHV
$%&'
$VVHWV
)1RQFXUUHQWDVVHWV
D)L[HGDVVHWV
L7DQJLEOHDVVHWV
E1RQFXUUHQWLQYHVWPHQWV
F'HIHUUHGWD[DVVHWV
E&DVKDQGEDQNEDODQFHV
F6KRUWWHUPORDQVDQGDGYDQFHV
LL,QWDQJLEOHDVVHWV
G/RQJWHUPORDQVDQGDGYDQFHV
H2WKHUQRQFXUUHQWDVVHWV
7RWDO1RQFXUUHQWDVVHWV
*&XUUHQWDVVHWV
D&XUUHQWLQYHVWPHQWV
G2WKHUFXUUHQWDVVHWV
7RWDO&XUUHQWDVVHWV
6
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
` LQODFV
3DUWLFXODUV
+7RWDO$VVHWV)*
$VDW0DUFK
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
` LQODFV
1HWZRUWKDVDW0DUFK
L6KDUHFDSLWDO
LL5HVHUYHVDQGVXUSOXV
LLL0RQH\UHFHLYHGDJDLQVWVKDUHZDUUDQWV
LY6KDUHDSSOLFDWLRQPRQH\SHQGLQJ
DOORWPHQW
Y/HVV0LVFHOODQHRXV([SHQGLWXUHWRWKH
H[WHQGQRWZULWWHQRIIRUDGMXVWHG
7RWDOLLLLLLLYY
6
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
5HIRUPDWWHGVXPPDU\RI6WDWHPHQWRI3URILWDQG/RVV
` LQODFV
3DUWLFXODUV
$,QFRPH
D5HYHQXHIURP2SHUDWLRQ
E2WKHU,QFRPH
7RWDO5HYHQXH
)RU\HDUWKHHQGHG0DUFK
&3URILWEHIRUHWD[
'7D[H[SHQVH
D&XUUHQWWD[
E'HIHUUHGWD[
F:HDOWKWD[
G)ULQJHEHQHILWWD[
H7D[RIHDUOLHU\HDUV
7RWDOWD[H[SHQVH
%([SHQVHV
D(PSOR\HHEHQHILWVH[SHQVHV
E)LQDQFHFRVWV
F'HSUHFLDWLRQDQGDPRUWLVDWLRQ
H[SHQVHV
G2WKHUH[SHQVHV
H3URYLVLRQVZULWHRIIVQHW
7RWDOH[SHQVHV
(3URILWDIWHUWD[IURPFRQWLQXLQJRSHUDWLRQV
(DUQLQJVSHUHTXLW\VKDUH
(TXLW\VKDUHVRISDUYDOXH`HDFK
%DVLF`)
'LOXWHG`)
6
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
5HIRUPDWWHG6XPPDU\RI&DVK)ORZ6WDWHPHQW
` LQODFV
3DUWLFXODUV
$&DVKIORZIURP2SHUDWLQJDFWLYLWLHV
1HWSURILWEHIRUHWD[DWLRQ
1RQFDVKDGMXVWPHQWVWRUHFRQFLOHSURILW
EHIRUHWD[WRQHWFDVKIORZV
'HSUHFLDWLRQDQGDPRUWL]DWLRQ
3URYLVLRQIRULPSDLUPHQW
3URILWORVVRQVDOHRIIL[HGDVVHWV
(PSOR\HHV6WRFNRSWLRQFRPSHQVDWLRQ
H[SHQVHV
6KDUHDQGGHEHQWXUHLVVXHH[SHQVHV
ZULWWHQRII
3URYLVLRQIRUQRQSHUIRUPLQJDVVHWVDQG
EDGGHEWZULWWHQRII
&RQWLQJHQW3URYLVLRQRQ6WDQGDUGDVVHWV
3URYLVLRQIRUKHGJLQJFRQWUDFWV
3URYLVLRQIRUGLPLQXWLRQLQYDOXHRI
LQYHVWPHQWV
3URYLVLRQIRUJUDWXLW\
3URYLVLRQIRUOHDYHEHQHILWV
3URYLVLRQIRUGLPLQXWLRQLQYDOXHRI
LQYHVWPHQWV
1HWJDLQORVVRQVDOHRILQYHVWPHQWV
,QWHUHVWLQFRPHRQFXUUHQWDQGORQJWHUP
LQYHVWPHQWVDQGLQWHUHVWLQFRPHRQIL[HG
GHSRVLWV
'LYLGHQG,QFRPH
2SHUDWLQJSURILWEHIRUHZRUNLQJFDSLWDO
FKDQJHV
0RYHPHQWLQ:RUNLQJFDSLWDO
,QFUHDVHGHFUHDVHLQDVVWVXQGHU
ILQDQFLQJDFWLYLWLHV
,QFUHDVHGHFUHDVHLQ6KRUWWHUPORDQV
DQGDGYDQFHV
,QFUHDVHGHFUHDVHLQ/RQJWHUPORDQVDQG
DGYDQFHV
,QFUHDVHGHFUHDVHLQRWKHUFXUUHQWDVVHWV
,QFUHDVHGHFUHDVHLQRWKHUQRQFXUUHQW
DVVHWV
,QFUHDVHGHFUHDVHLQRWKHUFXUUHQW
OLDELOLWLHV
,QFUHDVHGHFUHDVHLQRWKHUQRQFXUUHQW
OLDELOLWLHV
&DVKJHQHUDWHGIURPRSHUDWLRQ
'LUHFWWD[HVSDLGQHWRIUHIXQG
1HW&DVKIORZIURPXVHGLQRSHUDWLQJ
DFWLYLWLHV$
6
%&DVKIORZIURPLQYHVWLQJDFWLYLWLHV
,QYHVWPHQWLQ)L[HG'HSRVLWKDYLQJ
RULJLQDOPDWXULW\RIPRUHWKDQWKUHH
PRQWKV
,QYHVWPHQWLQPDUJLQPRQH\GHSRVLW
3XUFKDVHRIIL[HGDQGLQWDQJLEOHDVVHWV
3URFHHGVIURPVDOHRIIL[HGDVVHWV
,QYHVWPHQWLQVXEVLGLDU\FRPSDQ\
3XUFKDVHRIQRQFXUUHQWLQYHVWPHQWV
3URFHHGVIURPVDOHRIQRQFXUUHQW
LQYHVWPHQWV
3URFHHGVIURPVDOHRIFXUUHQWLQYHVWPHQWV
QHW
,QWHUHVWUHFHLYHGRQFXUUHQWDQGORQJWHUP
LQYHVWPHQWVDQGLQWHUHVWRQIL[HGGHSRVLWV
'LYLGHQGUHFHLYHG
1HWFDVKIORZIURPXVHGLQLQYHVWLQJ
DFWLYLWLHV%
&&DVKIORZIURPILQDQFLQJDFWLYLWLHV
3URFHHGVIURPLVVXHRIHTXLW\VKDUHFDSLWDO
LQFOXGLQJVHFXULWLHVSUHPLXPDQGVKDUH
DSSOLFDWLRQPRQH\
,QFUHDVHGHFUHDVHRIORQJWHUP
ERUURZLQJV
,QFUHDVHGHFUHDVHRIVKRUWWHUP
ERUURZLQJV
3XEOLFLVVXHH[SHQVHVIRUQRQFRQYHUWLEOH
GHEHQWXUHSDLG
'LYLGHQG3DLG
7D[RQGLYLGHQG
1HW&DVKIORZIURPXVHGLQILQDQFLQJ
DFWLYLWLHV&
1HWLQFUHDVHGHFUHDVHLQFDVKDQGFDVK
HTXLYDOHQWV$%&
&DVKDQGFDVKHTXLYDOHQWVDWWKH
EHJLQQLQJRIWKH\HDU
&DVKDQGFDVKHTXLYDOHQWVDWWKHHQGRI
WKH\HDU
6
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
5HIRUPDWWHG6XPPDU\RI&DVK)ORZ6WDWHPHQW
` LQODFV
&RPSRQHQWRIFDVKDQGFDVKHTXLYDOHQWV
&DVKRQKDQGDQGUHPLWWDQFHLQWUDQVLW
)RUWKH\HDUHQGHG0DUFK
%DODQFHVZLWKEDQNV
&XUUHQW$FFRXQW
%DODQFHLQXQSDLGGLYLGHQGDFFRXQWV
%DQN'HSRVLWZLWKPDWXULW\RIOHVVWKDQPRQWKV
7RWDO&DVKDQGFDVKHTXLYDOHQWV
6XPPDU\RIVLJQLILFDQWDFFRXQWLQJSROLFLHV
6
` LQODFV
5HIRUPDWWHG&RQVROLGDWHG%DODQFH6KHHWDV
DW0DUFK
,(TXLW\DQG/LDELOLWLHV
6KDUHKROGHUV¶IXQGV
D6KDUHFDSLWDO
E5HVHUYHVDQGVXUSOXV
F0RQH\UHFHLYHGDJDLQVWVKDUHZDUUDQWV
6KDUHDSSOLFDWLRQPRQH\SHQGLQJDOORWPHQW
1RQFXUUHQWOLDELOLWLHV
D/RQJWHUPERUURZLQJV
E2WKHUORQJWHUPOLDELOLWLHV
F/RQJWHUPSURYLVLRQV
&XUUHQWOLDELOLWLHV
D6KRUWWHUPERUURZLQJV
E2WKHUFXUUHQWOLDELOLWLHV
F6KRUWWHUPSURYLVLRQV
0LQRULW\LQWHUHVW
7RWDO
,,$66(76
1RQFXUUHQWDVVHWV
D)L[HGDVVHWV
L7DQJLEOHDVVHWV
LL,QWDQJLEOHDVVHWV
E1RQFXUUHQWLQYHVWPHQWV
F'HIHUUHGWD[DVVHWV
G/RQJWHUPORDQVDQGDGYDQFHV
H2WKHUQRQFXUUHQWDVVHWV
&XUUHQWDVVHWV
D&XUUHQWLQYHVWPHQWV
E&DVKDQGEDQNEDODQFHV
F6KRUWWHUPORDQVDQGDGYDQFHV
G2WKHUFXUUHQWDVVHWV
7RWDO
6
1HWZRUWKDVDW0DUFK
L6KDUHFDSLWDO
LL5HVHUYHVDQGVXUSOXV
LLL0RQH\UHFHLYHGDJDLQVWVKDUHZDUUDQWV
LY/HVV0LVFHOODQHRXV([SHQGLWXUHWRWKH
H[WHQGQRWZULWWHQRIRUDGMXVWHG
7RWDOLLLLLLLYY
6
` LQODFV
` LQODFV
5HIRUPDWWHG&RQVROLGDWHG6WDWHPHQWRI3URILW
DQG/RVVIRUWKH\HDUHQGHG0DUFK
5HYHQXHIURP2SHUDWLRQ
2WKHU,QFRPH
7RWDO5HYHQXH
([SHQVHV
(PSOR\HHEHQHILWVH[SHQVH
)LQDQFHFRVWV
'HSUHFLDWLRQDQGDPRUWL]DWLRQH[SHQVH
2WKHUH[SHQVHV
3URYLVLRQVZULWHRIIVQHW
7RWDOH[SHQVHV
3URILWEHIRUHWD[
7D[H[SHQVH
&XUUHQWWD[
'HIHUUHGWD[
7D[RIHDUOLHU\HDUV
7RWDOWD[H[SHQVH
3URILWDIWHUWD[IURPFRQWLQXLQJRSHUDWLRQV
/HVV0LQRULW\,QWHUHVW
(DUQLQJVSHUHTXLW\VKDUH
(TXLW\VKDUHVRISDUYDOXH`HDFK
%DVLF`)
'LOXWHG`)
6
` LQODFV
5HIRUPDWWHG&RQVROLGDWHG&DVKIORZVWDWHPHQWIRUWKH
\HDUHQGHG0DUFK
&DVKIORZIURP2SHUDWLQJDFWLYLWLHV
1HWSURILWEHIRUHWD[DWLRQ
1RQFDVKDGMXVWPHQWVWRUHFRQFLOHSURILWEHIRUHWD[WRQHW
FDVKIORZV
'HSUHFLDWLRQDQGDPRUWL]DWLRQ
/RVVRQVDOHRIIL[HGDVVHWV
(PSOR\HHVVWRFNRSWLRQFRPSHQVDWLRQH[SHQVHV
3XEOLFLVVXHH[SHQGLWXUHIRUQRQFRQYHUWLEOHGHEHQWXUHV
3URYLVLRQIRUQRQSHUIRUPLQJDVVHWVDQGEDGGHEWVZULWWHQ
RII
&RQWLQJHQWSURYLVLRQRQVWDQGDUGDVVHWV
3URYLVLRQIRUKHGJLQJFRQWUDFWV
3URYLVLRQIRUGLPLQXWLRQLQWKHYDOXHRILQYHVWPHQWV
3URYLVLRQIRUJUDWXLW\
3URYLVLRQIRUOHDYHEHQHILWV
3URYLVLRQIRUOHDVH
UHQWDO
1HWJDLQRQVDOHRIFXUUHQWLQYHVWPHQWV
,QWHUHVWLQFRPHRQFXUUHQWDQGORQJWHUPLQYHVWPHQWVDQG
LQWHUHVWLQFRPHRQIL[HGGHSRVLWV
'LYLGHQG,QFRPH
2SHUDWLQJSURILWEHIRUHZRUNLQJFDSLWDOFKDQJHV
0RYHPHQWLQ:RUNLQJFDSLWDO
,QFUHDVHGHFUHDVHLQDVVHWVXQGHUILQDQFLQJDFWLYLWLHV
,QFUHDVHGHFUHDVHLQ6KRUWWHUPORDQVDQGDGYDQFHV
,QFUHDVHGHFUHDVHLQ/RQJWHUPORDQVDQGDGYDQFHV
,QFUHDVHGHFUHDVHLQRWKHUFXUUHQWDVVHWV
,QFUHDVHGHFUHDVHLQRWKHUQRQFXUUHQWDVVHWV
,QFUHDVHGHFUHDVHLQRWKHUFXUUHQWOLDELOLWLHV
,QFUHDVHGHFUHDVHLQRWKHUQRQFXUUHQWOLDELOLWLHV
&DVKJHQHUDWHGIURPRSHUDWLRQV
'LUHFWWD[HVSDLGQHWRIUHIXQG
1HW&DVKIORZIURPXVHGLQRSHUDWLQJDFWLYLWLHV$
&DVKIORZIURPLQYHVWLQJDFWLYLWLHV
,QYHVWPHQWLQIL[HGGHSRVLWVKDYLQJPDWXULW\RIPRUHWKDQ
WKUHHPRQWKV
,QYHVWPHQWLQPDUJLQPRQH\GHSRVLWV
6
` LQODFV
5HIRUPDWWHG&RQVROLGDWHG&DVKIORZVWDWHPHQWIRUWKH
\HDUHQGHG0DUFK
3XUFKDVHRIIL[HGDQGLQWDQJLEOHDVVHWV
3URFHHGVIURPVDOHRIIL[HGDVVHWV
3XUFKDVHRILQYHVWPHQWV
3URFHHGVIURPVDOHRILQYHVWPHQWVQHW
,QWHUHVWUHFHLYHGRQFXUUHQWDQGORQJWHUPLQYHVWPHQWVDQG
LQWHUHVWRQIL[HGGHSRVLWV
'LYLGHQGUHFHLYHG
1HWFDVKIORZIURPXVHGLQLQYHVWLQJDFWLYLWLHV%
&DVKIORZIURPILQDQFLQJDFWLYLWLHV
3URFHHGVIURPLVVXHRIHTXLW\VKDUHFDSLWDOLQFOXGLQJ
VHFXULWLHVSUHPLXPDQGVKDUHDSSOLFDWLRQPRQH\
,QFUHDVHGHFUHDVHRIORQJWHUPERUURZLQJV
,QFUHDVHGHFUHDVHRIVKRUWWHUPERUURZLQJV
3XEOLFLVVXHH[SHQVHVIRUQRQFRQYHUWLEOHGHEHQWXUHVSDLG
'LYLGHQG3DLG
7D[RQGLYLGHQG
1HW&DVKIORZIURPXVHGLQILQDQFLQJDFWLYLWLHV&
1HWLQFUHDVHGHFUHDVHLQFDVKDQGFDVKHTXLYDOHQWV
$%&
&DVKDQGFDVKHTXLYDOHQWVDWWKHEHJLQQLQJRIWKH\HDU
&DVKDQGFDVKHTXLYDOHQWVDWWKHHQGRIWKH\HDU
)RUWKH\HDUHQGHG0DUFK
&RPSRQHQWRIFDVKDQGFDVKHTXLYDOHQWV
&DVKRQKDQG
%DODQFHVZLWKEDQNV
&XUUHQWDFFRXQWV
%DODQFHLQXQSDLGGLYLGHQGDFFRXQWV
%DQNGHSRVLWVZLWKPDWXULW\RIOHVVWKDQPRQWKV
7RWDO&DVKDQGFDVKHTXLYDOHQWV
6
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
%DODQFH6KHHW
` LQODFV
$VDW6HSW $VDW0DUFK
3DUWLFXODUV
&XUUHQWOLDELOLWLHV
D6KRUWWHUPERUURZLQJV
E2WKHUFXUUHQWOLDELOLWLHV
L7DQJLEOHDVVHWV
LL,QWDQJLEOHDVVHWV
,(TXLW\DQG/LDELOLWLHV
6KDUHKROGHUV¶IXQGV
D6KDUHFDSLWDO
E5HVHUYHVDQGVXUSOXV
F0RQH\UHFHLYHGDJDLQVWVKDUHZDUUDQWV
6KDUHDSSOLFDWLRQPRQH\SHQGLQJDOORWPHQW
1RQFXUUHQWOLDELOLWLHV
D/RQJWHUPERUURZLQJV
E2WKHUORQJWHUPOLDELOLWLHV
F/RQJWHUPSURYLVLRQV
F6KRUWWHUPSURYLVLRQV
7RWDO
,,$66(76
1RQFXUUHQWDVVHWV
D)L[HGDVVHWV
E1RQFXUUHQWLQYHVWPHQWV
F'HIHUUHGWD[DVVHWV
G/RQJWHUPORDQVDQGDGYDQFHV
H2WKHUQRQFXUUHQWDVVHWV
6
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
%DODQFH6KHHW
` LQODFV
$VDW6HSW $VDW0DUFK
3DUWLFXODUV
&XUUHQWDVVHWV
D&XUUHQW,QYHVWPHQW
E&DVKDQGEDQNEDODQFHV
F6KRUWWHUPORDQVDQGDGYDQFHV
G2WKHUFXUUHQWDVVHWV
7RWDO
6
6KULUDP&LW\8QLRQ)LQDQFH/WG
6WDWHPHQWRI3URILWDQG/RVV
3DUWLFXODUV
)RUWKHSHULRGHQGHG6HSW
5HYHQXHIURPRSHUDWLRQV
` LQODFV
)RUWKH\HDUHQGHG0DUFK
([SHQVHV
(PSOR\HHEHQHILWVH[SHQVH
)LQDQFHFRVWV
2WKHULQFRPH
7RWDO5HYHQXH
'HSUHFLDWLRQDQGDPRUWL]DWLRQH[SHQVH
2WKHUH[SHQVHV
3URYLVLRQVZULWHRIIVQHW
3URILWEHIRUHWD[
7D[H[SHQVH
&XUUHQWWD[
'HIHUUHGWD[
(TXLW\VKDUHVRISDUYDOXH`HDFK
%DVLF`)
'LOXWHG`)
7RWDOH[SHQVHV
7RWDOWD[H[SHQVH
3URILWDIWHUWD[IURPFRQWLQXLQJ
RSHUDWLRQV
(DUQLQJVSHUHTXLW\VKDUH
6
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
&DVKIORZVWDWHPHQW
&DVKIORZIURP2SHUDWLQJDFWLYLWLHV
1HWSURILWEHIRUHWD[DWLRQ
)RUWKHSHULRGHQGHG
6HSW
(`)LQODFV
)RUWKH\HDUHQGHG
0DUFK
1RQFDVKDGMXVWPHQWVWRUHFRQFLOHSURILWEHIRUHWD[WRQHWFDVKIORZV
'HSUHFLDWLRQDQGDPRUWL]DWLRQ
/RVVRQVDOHRIIL[HGDVVHWV
3XEOLFLVVXHH[SHQGLWXUHIRUQRQFRQYHUWLEOHGHEHQWXUHV
3URYLVLRQIRUQRQSHUIRUPLQJDVVHWVDQGEDGGHEWVZULWWHQRII
&RQWLQJHQWSURYLVLRQRQVWDQGDUGDVVHWV
3URYLVLRQIRUGLPLQXWLRQLQWKHYDOXHRILQYHVWPHQWV
3URYLVLRQIRUJUDWXLW\
3URYLVLRQIRUOHDYHEHQHILWV
1HWJDLQRQVDOHRIFXUUHQWLQYHVWPHQWV
,QWHUHVWLQFRPHRQFXUUHQWDQGORQJWHUPLQYHVWPHQWVDQGLQWHUHVW
LQFRPHRQIL[HGGHSRVLWV
'LYLGHQG,QFRPH
2SHUDWLQJSURILWEHIRUHZRUNLQJFDSLWDOFKDQJHV
0RYHPHQWLQ:RUNLQJFDSLWDO
,QFUHDVHGHFUHDVHLQDVVHWVXQGHUILQDQFLQJDFWLYLWLHV
,QFUHDVHGHFUHDVHLQ6KRUWWHUPORDQVDQGDGYDQFHV
,QFUHDVHGHFUHDVHLQ/RQJWHUPORDQVDQGDGYDQFHV
,QFUHDVHGHFUHDVHLQRWKHUFXUUHQWDVVHWV
,QFUHDVHGHFUHDVHLQRWKHUQRQFXUUHQWDVVHWV
,QFUHDVHGHFUHDVHLQRWKHUFXUUHQWOLDELOLWLHV
,QFUHDVHGHFUHDVHLQRWKHUQRQFXUUHQWOLDELOLWLHV
1HW&DVKIORZIURPXVHGLQRSHUDWLQJDFWLYLWLHV$
&DVKIORZIURPLQYHVWLQJDFWLYLWLHV
,QYHVWPHQWLQIL[HGGHSRVLWVKDYLQJPDWXULW\RIPRUHWKDQWKUHH
PRQWKV
,QYHVWPHQWLQPDUJLQPRQH\GHSRVLWV
3XUFKDVHRIIL[HGDQGLQWDQJLEOHDVVHWV
3URFHHGVIURPVDOHRIIL[HGDVVHWV
,QYHVWPHQWLQVXEVLGLDU\FRPSDQ\
&DVKJHQHUDWHGIURPRSHUDWLRQV
'LUHFWWD[HVSDLGQHWRIUHIXQG
,QYHVWPHQWLQ0XWXDOIXQG
3URFHHGVIURPVDOHRILQYHVWPHQWVQHW
,QWHUHVWUHFHLYHGRQFXUUHQWDQGORQJWHUPLQYHVWPHQWVDQGLQWHUHVWRQ
IL[HGGHSRVLWV
'LYLGHQGUHFHLYHG
1HWFDVKIORZIURPXVHGLQLQYHVWLQJDFWLYLWLHV%
6
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
&DVKIORZIURPILQDQFLQJDFWLYLWLHV
)RUWKHSHULRGHQGHG
6HSW
)RUWKH\HDUHQGHG
0DUFK
3URFHHGVIURPLVVXHRIHTXLW\VKDUHFDSLWDOLQFOXGLQJ
VHFXULWLHVSUHPLXPDQGVKDUHDSSOLFDWLRQPRQH\
,QFUHDVHGHFUHDVHRIORQJWHUPERUURZLQJV
,QFUHDVHGHFUHDVHRIVKRUWWHUPERUURZLQJV
3XEOLFLVVXHH[SHQVHVIRUQRQFRQYHUWLEOHGHEHQWXUHVSDLG
'LYLGHQG3DLG
7D[RQGLYLGHQG
&DVKDQGEDQNEDODQFHUHFHLYHGRQDFFRXQWRIPHUJHUZLWK65+3/
1HW&DVKIORZIURPXVHGLQILQDQFLQJDFWLYLWLHV&
1HWLQFUHDVHGHFUHDVHLQFDVKDQGFDVKHTXLYDOHQWV
$%&
&DVKDQGFDVKHTXLYDOHQWVDWWKHEHJLQQLQJRIWKH\HDU
&DVKDQGFDVKHTXLYDOHQWVDWWKHHQGRIWKH\HDU
&RPSRQHQWRIFDVKDQGFDVKHTXLYDOHQWV
&DVKRQKDQG
)RUWKHSHULRGHQGHG
6HSW
)RUWKH\HDUHQGHG
0DUFK
%DODQFHVZLWKEDQNV
&XUUHQWDFFRXQWV
%DODQFHLQXQSDLGGLYLGHQGDFFRXQWV
%DQNGHSRVLWVZLWKPDWXULW\RIOHVVWKDQPRQWKV
7RWDO&DVKDQGFDVKHTXLYDOHQWV
6
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
&RQVROLGDWHG%DODQFH6KHHW
,(TXLW\DQG/LDELOLWLHV
6KDUHKROGHUV¶IXQGV
$VDW6HSW
D6KDUHFDSLWDO
E5HVHUYHVDQGVXUSOXV
F0RQH\UHFHLYHGDJDLQVWVKDUH
ZDUUDQWV
6KDUHDSSOLFDWLRQPRQH\SHQGLQJ
DOORWPHQW
1RQFXUUHQWOLDELOLWLHV
` LQODFV
$VDW0DUFK
D/RQJWHUPERUURZLQJV
E2WKHUORQJWHUPOLDELOLWLHV
F/RQJWHUPSURYLVLRQV
&XUUHQWOLDELOLWLHV
D6KRUWWHUPERUURZLQJV
E2WKHUFXUUHQWOLDELOLWLHV
F6KRUWWHUPSURYLVLRQV
0LQRULW\LQWHUHVW
7RWDO
,,$66(76
1RQFXUUHQWDVVHWV
D)L[HGDVVHWV
L7DQJLEOHDVVHWV
LL,QWDQJLEOHDVVHWV
E1RQFXUUHQWLQYHVWPHQWV
F'HIHUUHGWD[DVVHWV
G/RQJWHUPORDQVDQGDGYDQFHV
H2WKHUQRQFXUUHQWDVVHWV
&XUUHQWDVVHWV
D&XUUHQW,QYHVWPHQW
6
E&DVKDQGEDQNEDODQFHV
F6KRUWWHUPORDQVDQGDGYDQFHV
G2WKHUFXUUHQWDVVHWV
7RWDO
6
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
6WDWHPHQWRI&RQVROLGDWHG3URILWDQG/RVV
5HYHQXHIURPRSHUDWLRQV
2WKHULQFRPH
7RWDO5HYHQXH
([SHQVHV
(PSOR\HHEHQHILWVH[SHQVH
` LQODFV
)RUWKHSHULRGHQGHG )RUWKH\HDUHQGHG
6HSW
0DUFK
)LQDQFHFRVWV
'HSUHFLDWLRQDQGDPRUWL]DWLRQH[SHQVH
2WKHUH[SHQVHV
3URYLVLRQVZULWHRIIVQHW
7RWDOH[SHQVHV
3URILWEHIRUHWD[
7D[H[SHQVH
&XUUHQWWD[
'HIHUUHGWD[
7RWDOWD[H[SHQVH
3URILWDIWHUWD[IURPFRQWLQXLQJRSHUDWLRQV
/HVV0LQRULW\LQWHUHVW
(DUQLQJVSHUHTXLW\VKDUH
(TXLW\VKDUHVRISDUYDOXH`HDFK
%DVLF`)
'LOXWHG`)
6
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
&RQVROLGDWHG&DVKIORZVWDWHPHQWIRUWKHKDOI\HDU
HQGHG
&DVKIORZIURP2SHUDWLQJDFWLYLWLHV
1HWSURILWEHIRUHWD[DWLRQ
1RQFDVKDGMXVWPHQWVWRUHFRQFLOHSURILWEHIRUHWD[WRQHW
FDVKIORZV
'HSUHFLDWLRQDQGDPRUWL]DWLRQ
/RVV3URILWRQVDOHRIIL[HGDVVHWV
3XEOLFLVVXHH[SHQGLWXUHIRUQRQFRQYHUWLEOHGHEHQWXUHV
3URYLVLRQIRUQRQSHUIRUPLQJDVVHWVDQGEDGGHEWV
ZULWWHQRII
&RQWLQJHQWSURYLVLRQRQVWDQGDUGDVVHWV
3URYLVLRQIRUGLPXQLWLRQLQWKHYDOXHRILQYHVWPHQWV
3URYLVLRQIRUJUDWXLW\
3URYLVLRQIRUOHDYHEHQHILWV
3URYLVLRQIRUOHDVHUHQWDO
1HWJDLQRQVDOHRIFXUUHQWLQYHVWPHQWV
,QWHUHVWLQFRPHRQFXUUHQWDQGORQJWHUPLQYHVWPHQWVDQG
LQWHUHVWLQFRPHRQIL[HGGHSRVLWV
0LVFLQFRPH
'LYLGHQG,QFRPH
2SHUDWLQJSURILWEHIRUHZRUNLQJFDSLWDOFKDQJHV
0RYHPHQWLQ:RUNLQJFDSLWDO
,QFUHDVHGHFUHDVHLQDVVHWVXQGHUILQDQFLQJDFWLYLWLHV
,QFUHDVHGHFUHDVHLQ6KRUWWHUPORDQVDQGDGYDQFHV
,QFUHDVHGHFUHDVHLQ/RQJWHUPORDQVDQGDGYDQFHV
,QFUHDVHGHFUHDVHLQRWKHUFXUUHQWDVVHWV
,QFUHDVHGHFUHDVHLQRWKHUQRQFXUUHQWDVVHWV
,QFUHDVHGHFUHDVHLQRWKHUFXUUHQWOLDELOLWLHV
,QFUHDVHGHFUHDVHLQRWKHUQRQFXUUHQWOLDELOLWLHV
&DVKJHQHUDWHGIURPRSHUDWLRQV
'LUHFWWD[HVSDLGQHWRIUHIXQG
1HW&DVKIORZIURPXVHGLQRSHUDWLQJDFWLYLWLHV$
&DVKIORZIURPLQYHVWLQJDFWLYLWLHV
,QYHVWPHQWLQIL[HGGHSRVLWVKDYLQJPDWXULW\RIPRUH
WKDQWKUHHPRQWKV
,QYHVWPHQWLQPDUJLQPRQH\GHSRVLWV
3XUFKDVHRIIL[HGDQGLQWDQJLEOHDVVHWV
3URFHHGVIURPVDOHRIIL[HGDVVHWV
,QYHVWPHQWLQVXEVLGLDU\FRPSDQ\
,QYHVWPHQWLQ0XWXDOIXQG
3URFHHGVIURPVDOHRILQYHVWPHQWVQHW
,QWHUHVWUHFHLYHGRQFXUUHQWDQGORQJWHUPLQYHVWPHQWV
DQGLQWHUHVWRQIL[HGGHSRVLWV
0LVFLQFRPH
'LYLGHQGUHFHLYHG
1HWFDVKIORZIURPXVHGLQLQYHVWLQJDFWLYLWLHV%
&DVKIORZIURPILQDQFLQJDFWLYLWLHV
3URFHHGVIURPLVVXHRIHTXLW\VKDUHFDSLWDOLQFOXGLQJ
6
` LQODFV
)RUWKHSHULRG
)RUWKH\HDU
HQGHG6HSW HQGHG0DUFK
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
&RQVROLGDWHG&DVKIORZVWDWHPHQWIRUWKHKDOI\HDU
HQGHG
VHFXULWLHVSUHPLXPDQGVKDUHDSSOLFDWLRQPRQH\
,QFUHDVHGHFUHDVHRIORQJWHUPERUURZLQJV
,QFUHDVHGHFUHDVHRIVKRUWWHUPERUURZLQJV
3XEOLFLVVXHH[SHQVHVIRUQRQFRQYHUWLEOHGHEHQWXUHV
SDLG
'LYLGHQG3DLG
7D[RQGLYLGHQG
&DVKDQGEDQNEDODQFHUHFHLYHGRQDFFRXQWRIPHUJHUZLWK
65+3/
1HW&DVKIORZIURPXVHGLQILQDQFLQJDFWLYLWLHV&
1HWLQFUHDVHGHFUHDVHLQFDVKDQGFDVKHTXLYDOHQWV
$%&
&DVKDQGFDVKHTXLYDOHQWVDWWKHEHJLQQLQJRIWKH
\HDU
&DVKDQGFDVKHTXLYDOHQWVDWWKHHQGRIWKH\HDU
&RPSRQHQWRIFDVKDQGFDVKHTXLYDOHQWV
&DVKRQKDQG
%DODQFHVZLWKEDQNV
&XUUHQWDFFRXQWV
%DODQFHLQXQSDLGGLYLGHQGDFFRXQWV
%DQNGHSRVLWVZLWKPDWXULW\RIOHVVWKDQPRQWKV
7RWDO&DVKDQGFDVKHTXLYDOHQWV
6
` LQODFV
)RUWKHSHULRG
)RUWKH\HDU
HQGHG6HSW HQGHG0DUFK
)RUWKHSHULRG
)RUWKH\HDU
HQGHG6HSW HQGHG0DUFK
6800$5<2)%86,1(66
2YHUYLHZ
:H DUH D GHSRVLWWDNLQJ 1%)& ZLWK PXOWLSOH SURGXFW OLQHV LQFOXGLQJ ORDQV WR WKH VPDOO HQWHUSULVH ILQDQFH
VHJPHQW ORDQV DJDLQVW JROG ILQDQFLQJ IRU WZR ZKHHOHUV DSSOLDQFHV DQG RWKHU FRPPHUFLDO JRRGV UHIHUUHG WR
KHUHLQDV³3URGXFW)LQDQFH´SUHRZQHGDQGQHZYHKLFOHORDQVDQGSHUVRQDOORDQV:HDUHWKHPDUNHWOHDGHU
LQ WKH VPDOO ORDQ VHJPHQW ZLWK DQ HVWLPDWHG PDUNHW VKDUH RI LQ ILVFDO 6RXUFH $QDO\VLV RI WKH
060( 6PDOO /RDQ &UHGLW 0DUNHW IRU 1%)&V LQ ,QGLD -XQH E\ )URVW 6XOOLYDQ :H DUH SDUW RI WKH
6KULUDP*URXSRIFRPSDQLHVWKH³6KULUDP*URXS´DILQDQFLDOVHUYLFHVFRQJORPHUDWHLQ,QGLD
:HEHOLHYH ZHDUH,QGLD¶VSUHPLHU ILQDQFLDOVHUYLFHVFRPSDQ\ VSHFLDOL]LQJLQVPDOOHQWHUSULVH ILQDQFH ZKLFK
DFFRXQWHG IRU DQG RI RXU DVVHWV XQGHU PDQDJHPHQW IRU WKH ILQDQFLDO \HDUV
DQG VL[ PRQWKV HQGHG 6HSWHPEHU UHVSHFWLYHO\ 6LQFH FRPPHQFLQJ RSHUDWLRQV LQ
ZHKDYHHVWDEOLVKHGDSDQ,QGLDQSUHVHQFHWKURXJKEXVLQHVVRXWOHWVDVRI6HSWHPEHU:H
FDWHUWRWKHILQDQFLQJQHHGVRIRXUVPDOOHQWHUSULVHVDQGUHWDLOFXVWRPHUVZKLFKFRQVWLWXWHDVLJQLILFDQWSDUWRI
RXUFXVWRPHUEDVH
:H DUH D SDUW RI WKH 6KULUDP *URXS ZKLFK KDV D VWURQJ SUHVHQFH LQ ILQDQFLDO VHUYLFHV LQ ,QGLD LQFOXGLQJ
FRPPHUFLDO YHKLFOH ILQDQFLQJ FRQVXPHU ILQDQFH OLIH DQG JHQHUDO LQVXUDQFH VWRFN EURNLQJ FKLW IXQGV DQG
GLVWULEXWLRQ RI ILQDQFLDO SURGXFWV VXFK DV OLIH DQG JHQHUDO LQVXUDQFH SURGXFWV DQG PXWXDO IXQG SURGXFWV 7KH
6KULUDP *URXS DOVR KDV D JURZLQJ SUHVHQFH LQ RWKHU EXVLQHVVHV VXFK DV SURSHUW\ GHYHORSPHQW HQJLQHHULQJ
SURMHFWV DQG LQIRUPDWLRQ WHFKQRORJ\ 7KH ODUJH FXVWRPHU EDVH DQG ZLGHVSUHDG QHWZRUN RI FHUWDLQ 6KULUDP
*URXS FRPSDQLHV LQFOXGLQJ EXVLQHVVHV RSHUDWLQJ XQGHU WKH 6KULUDP &KLWV EUDQG QDPH 6KULUDP 7UDQVSRUW
)LQDQFH &RPSDQ\ /LPLWHG WKH ODUJHVW DVVHW ILQDQFLQJ FRPSDQ\ LQ WHUPV RI DVVHW XQGHU PDQDJHPHQW WRWDO
LQFRPH DQG SURILW DIWHU WD[ LQ ,QGLD EDVHG RQ WKH ILQDQFLDO SDUDPHWHUV IRU ILVFDO 6RXUFH &RPPHUFLDO
9HKLFOH)LQDQFH$&RPSDUDWLYH 6WXG\-XQHE\'XQ %UDGVWUHHW6KULUDP)RUWXQH 6ROXWLRQV /LPLWHG
DQG 6KULUDP )LQDQFLDO 3URGXFWV 6ROXWLRQV &KHQQDL 3ULYDWH /LPLWHG SUHVHQW XV ZLWK D ODUJH SRRO RI WDUJHW
FXVWRPHUV ZKR ZH EHOLHYH WUXVW WKH 6KULUDP EUDQG QDPH +LVWRULFDOO\ VXEVWDQWLDOO\ RXU HQWLUH VPDOO DQG
PHGLXPHQWHUSULVHVFXVWRPHUEDVHKDVEHHQUHIHUUHGWRXVE\HQWLWLHVRSHUDWLQJXQGHUWKH6KULUDP&KLWVEUDQG
QDPH ZKLFK LQFUHDVHV HIILFLHQF\ DQG LPSURYHV WKH TXDOLW\ RI RXU ORDQ ERRN ,Q DGGLWLRQ ZH EHOLHYH WKDW WKH
JRRGZLOODVVRFLDWHGZLWKWKH6KULUDPEUDQGQDPHDOORZVXVWRDFFHVVIXQGLQJDWDUHODWLYHO\FRPSHWLWLYHFRVW
:H RSHUDWH D µKXEDQG VSRNH¶ EXVLQHVV PRGHO ZKHUH UHVSRQVLELOLWLHV IURP ORDQ RULJLQDWLRQ WR UHFRYHULHV RI
ORDQVDUHYHVWHGLQHDFKRIRXUEXVLQHVVRXWOHWVXQGHUWKHJHQHUDOVXSHUYLVLRQDQGFRQWURORIRXUKHDGRIILFHLQ
&KHQQDL:HHPSOR\GHGLFDWHGLQKRXVHWHDPVZKRDUHORFDOO\GUDZQZLWKLQGHSWKNQRZOHGJHRIFXVWRPHUVIRU
SUHOHQGLQJ ILHOG LQYHVWLJDWLRQ DQG SRVWOHQGLQJ SURFHGXUHV 2XU QHWZRUN RI EXVLQHVV RXWOHWV LV IXOO\
LQWHUFRQQHFWHGDQGHDFKEXVLQHVVRXWOHWLVFRQQHFWHGWRRXUKHDGRIILFHWKURXJKDSURSULHWDU\HQWHUSULVHUHVRXUFH
SODQQLQJ³(53´SODWIRUP
:H KDYH GHPRQVWUDWHG FRQVLVWHQW JURZWK LQ RXU EXVLQHVV DQG SURILWDELOLW\ 2XU WRWDO LQFRPH LQFUHDVHG WR
`ODNKVIRUWKHILQDQFLDO\HDUIURP `ODNKVIRUWKHILQDQFLDO\HDUDWD&$*5
RI2XUQHWSURILWDIWHUWD[LQFUHDVHGWR `ODNKVIRUWKH ILQDQFLDO \HDUIURP `
ODNKVIRUWKHILQDQFLDO\HDUDWD&$*5RI
2XUDVVHWVXQGHUPDQDJHPHQWZHUH `ODNKVDQG `ODNKVDVRI6HSWHPEHUDQG
0DUFK UHVSHFWLYHO\ 2XU FDSLWDO DGHTXDF\ UDWLR DV RI 0DUFK FRPSXWHG RQ WKH EDVLV RI
DSSOLFDEOH 5%, UHTXLUHPHQWV ZDV FRPSDUHG WR WKH 5%, VWLSXODWHG PLQLPXP UHTXLUHPHQW RI 2XU7LHU,FDSLWDODVRI6HSWHPEHUDQG0DUFKZDV`ODNKVDQG`ODNKV
UHVSHFWLYHO\2XUJURVV13$VDVDSHUFHQWDJHRIWRWDOORDQDVVHWVZHUH DQGDVRI6HSWHPEHU
DQG0DUFKUHVSHFWLYHO\2XUQHW13$VDVDSHUFHQWDJHRIQHWORDQDVVHWVZHUHDQG
DVRI6HSWHPEHUDQG0DUFK
2UJDQL]DWLRQDO6WUXFWXUH
2XURUJDQL]DWLRQDOVWUXFWXUHLVDVIROORZV
.H\ILQDQFLDOSDUDPHWHUV
3URYLGHGEHORZLVDVXPPDU\RIRXUNH\ILQDQFLDOSDUDPHWHUVIRUWKHODVWWKUHH)LVFDOV
3DUWLFXODUV
3DLGXSHTXLW\VKDUHFDSLWDO
1HWZRUWK
7RWDO'HEWRIZKLFK
1RQ&XUUHQW0DWXULWLHVRI
/RQJ7HUP%RUURZLQJ
6KRUW7HUP%RUURZLQJ
&XUUHQW0DWXULWLHVRI/RQJ7HUPERUURZLQJ
1HW)L[HG$VVHWV
1RQ&XUUHQW$VVHWV1HWRI)L[HG$VVHWV
&DVKDQG%DQN%DODQFHV
&XUUHQW,QYHVWPHQWV
&XUUHQW$VVHWV1HWRI&DVKDQG%DQN%DODQFHV
&XUUHQW,QYHVWPHQWV
&XUUHQW/LDELOLWLHV1HWRI6KRUW7HUP%RUURZLQJV
&XUUHQW0DWXULWLHVRI/RQJ7HUP%RUURZLQJ
,QWHUHVW,QFRPH
,QWHUHVW([SHQVH
3URYLVLRQLQJ:ULWHRIIV
3URILWDIWHUWD[3$7
*URVV13$
1HW13$
7LHU,&DSLWDO$GHTXDF\5DWLR
7LHU,,&DSLWDO$GHTXDF\5DWLR
'HEWHTXLW\UDWLRDVDW6HSWHPEHU
%HIRUHWKH,VVXH
$IWHUWKH,VVXH
6HSWHPEHU
$XGLWHG
)LVFDO
`LQODNK
)LVFDO
)LVFDO
$XGLWHG
$XGLWHG
$XGLWHG
2XU6WUHQJWKV
:HEHOLHYHWKDWWKHIROORZLQJDUHRXUNH\VWUHQJWKV
/HDGLQJSRVLWLRQLQWKHKLJKJURZWKVPDOOHQWHUSULVHILQDQFHVHJPHQW
2XUDVVHWVXQGHUPDQDJHPHQWKDYHJURZQE\D&$*5RIWR`ODNKVDVRI0DUFK
IURP`ODNKVDVRI0DUFK2XUJURZWKKDVEHHQGULYHQE\ORDQVWRVPDOOHQWHUSULVHVDQGWR
XQGHUEDQNHG VHPLXUEDQ DQG UXUDO FXVWRPHUV WR PHHW WKHLU GLYHUVH FUHGLW QHHGV DFURVV LQFRPH JHQHUDWLRQ
FRQVXPSWLRQ DQG EDVLF QHHGV VXFK DV KRXVLQJ :H EHJDQ RIIHULQJ FXVWRPL]HG ORDQV LQ WKH VPDOO HQWHUSULVH
ILQDQFHVHJPHQWLQDQGZHKDYHFRQWLQXDOO\IRFXVHGRQH[SDQGLQJRXUFXVWRPHUEDVHIRUWKLVSURGXFWVLQFH
WKHQ$FFRUGLQJWRWKH)URVWDQG6XOOLYDQUHSRUWWLWOHG³$QDO\VLVRI060(/RDQ0DUNHWVIRU1%)&VLQ,QGLD±
-XQH ´ ZH DUH WKH PDUNHW OHDGHU LQ WKH VPDOO ORDQ VHJPHQW ZLWK DQ HVWLPDWHG PDUNHW VKDUH RI LQ
ILVFDO
:HEHOLHYHWKDWWKHVPDOOHQWHUSULVHILQDQFHVHJPHQWKDVVLJQLILFDQWURRPIRUJURZWKLQWKH,QGLDQPDUNHWSODFH
$FFRUGLQJWR)URVWDQG6XOOLYDQWKH060(VPDOOORDQFUHGLWPDUNHWLQ,QGLDLVH[SHFWHGWRLQFUHDVHDWD&$*5
RI EHWZHHQ DQG ³$QDO\VLV RI 060( /RDQ 0DUNHWV IRU 1%)&V ± -XQH ´ :LWK RXU
PDUNHWOHDGHUVKLSSRVLWLRQLQWKHVPDOOHQWHUSULVHILQDQFHVHJPHQWZHEHOLHYHWKDWZHDUHLGHDOO\SRVLWLRQHGWR
WDNHDGYDQWDJHRIWKHH[SHFWHGJURZWKSRWHQWLDO,QDGGLWLRQZLWKDSSUR[LPDWHO\RIRXUEXVLQHVVRXWOHWVLQ
WKHXQGHUSHQHWUDWHGVHPLXUEDQDUHDVRI,QGLDZHEHOLHYH WKHUHLVDVLJQLILFDQWSRWHQWLDOIRUJURZWKGULYHQE\
ULVLQJLQFRPHOHYHOVLQWKHVHDUHDV
(VWDEOLVKHGEUDQGQDPHDQGDVVRFLDWLRQZLWKWKH6KULUDP*URXS
:H EHQHILW IURP RXU DVVRFLDWLRQ ZLWK WKH 6KULUDP *URXS D ILQDQFLDO VHUYLFHV FRQJORPHUDWH LQ ,QGLD 7KH
6KULUDP *URXS HQJDJHV LQ D EURDG UDQJH RI ILQDQFLDO VHUYLFHV LQFOXGLQJ FRPPHUFLDO YHKLFOH ILQDQFLQJ
FRQVXPHU ILQDQFH OLIH DQG JHQHUDO LQVXUDQFH VWRFN EURNLQJ FKLW IXQGV DQG GLVWULEXWLRQ RI ILQDQFLDO SURGXFWV
VXFKDVOLIHDQGJHQHUDOLQVXUDQFHSURGXFWVDQGPXWXDOIXQGSURGXFWV7KH6KULUDP*URXSDOVRKDVDJURZLQJ
SUHVHQFHLQRWKHUEXVLQHVVHV VXFKDVSURSHUW\GHYHORSPHQWHQJLQHHULQJSURMHFWVDQGLQIRUPDWLRQWHFKQRORJ\
:HEHOLHYHWKDWWKH6KULUDPEUDQGQDPHLVUHFRJQL]DEOHDPRQJWKHSRSXODFHLQ,QGLD
:H SDUWLFXODUO\ EHQHILW IURP WKH ODUJH FXVWRPHU EDVH DQG ZLGHVSUHDG QHWZRUN RI FHUWDLQ 6KULUDP *URXS
FRPSDQLHV LQFOXGLQJ HQWLWLHV RSHUDWLQJ XQGHU WKH 6KULUDP &KLWV EUDQG QDPH 6KULUDP 7UDQVSRUW )LQDQFH
&RPSDQ\ /LPLWHG 6KULUDP )RUWXQH 6ROXWLRQV /LPLWHG DQG 6KULUDP )LQDQFLDO 3URGXFWV 6ROXWLRQV &KHQQDL
3ULYDWH/LPLWHG7KHVHDVVRFLDWLRQVSURYLGHXVZLWKDODUJHSRRORIWDUJHWFXVWRPHUVZKRZHEHOLHYHWUXVWWKH
6KULUDPEUDQGQDPH)XUWKHUZHDUHDEOHWRGUDZRQDOORIFULWLFDOFDSDELOLWLHVDQGLQVWLWXWLRQDONQRZOHGJHRI
HQWLWLHV RSHUDWLQJ XQGHU WKH 6KULUDP &KLWV EUDQG QDPH LQFOXGLQJ V\VWHPV SURFHVVHV DQG FXVWRPHU FUHGLW
KLVWRULHVDQGUHSD\PHQWUHFRUGVZKLFKFRQWULEXWHWRUHGXFLQJULVNLQFUHDVLQJHIILFLHQF\DQGLPSURYLQJRXUORDQ
ERRNTXDOLW\
,QDGGLWLRQZHDUHDEOHWRH[SDQGRXUORDQSRUWIROLRDQGPLQLPL]HRXUFUHGLWULVNE\SURYLGLQJVPDOOHQWHUSULVH
ORDQVWRFXVWRPHUVRIHQWLWLHVRSHUDWLQJXQGHUWKH6KULUDP&KLWVEUDQGQDPHWKDWDUHSDUWO\RUHQWLUHO\VHFXUHG
E\ WKHLU 6KULUDP &KLWV GHSRVLWV :H EHOLHYH WKH XQGHUEDQNHG FRPPXQLW\ HVSHFLDOO\ WKH VPDOO HQWHUSULVH
ILQDQFHVHJPHQWRIWHQGRHVQRWKDYHVXIILFLHQWPRYDEOHDQGRULPPRYDEOHSURSHUW\WRSURYLGHDVVHFXULW\IRU
ORDQV$VDUHVXOWRIRXUDVVRFLDWLRQZLWKHQWLWLHVRSHUDWLQJXQGHUWKH6KULUDP&KLWVEUDQGQDPHZHDUHIDPLOLDU
ZLWKWKHVHFXVWRPHUV¶UHTXLUHPHQWVDQGZHDUHDEOHWRHIIHFWLYHO\VHUYLFHWKHPZLWKSDUWLDOO\RUIXOO\VHFXUHG
ILQDQFLQJ
)LQDOO\ZHEHOLHYHWKDWRXUDVVRFLDWLRQZLWKWKH6KULUDP*URXSDQGWKHVWUHQJWKRIWKH6KULUDPEUDQGDOORZVXV
WR H[SDQG ZLWKLQ RXU WDUJHW PDUNHW LQ H[LVWLQJ DQG QHZ JHRJUDSKLHV ZLWK PLQLPDO PDUNHWLQJ VSHQG :H DOVR
EHOLHYH WKDW WKH JRRGZLOO DVVRFLDWHG ZLWK WKH 6KULUDP EUDQG QDPH DOORZV XV WR DFFHVV IXQGLQJ DW D UHODWLYHO\
FRPSHWLWLYHFRVW
'LYHUVLILHG3RUWIROLRRI3URGXFWV
:HKDYHVXFFHVVIXOO\GLYHUVLILHGRXUSURGXFWSRUWIROLRZKLFKFRQVLVWVRIORDQVWRWKHVPDOOHQWHUSULVHILQDQFH
VHJPHQWORDQVDJDLQVWJROG3URGXFW)LQDQFHORDQVSUHRZQHGDQGQHZYHKLFOHORDQVDQGSHUVRQDOORDQV(DFK
RIRXUSURGXFWVGLIIHUVLQWHUPV RIWKHDYHUDJH WHQXUHDYHUDJH \LHOGDYHUDJH LQWHUHVWUDWHDQGDYHUDJHVL]HRI
ORDQ $VRI 6HSWHPEHUDQG 0DUFKDSSUR[LPDWHO\ DQGRIRXUDVVHWV XQGHU
PDQDJHPHQW FRPSULVHG ORDQV WR VPDOO HQWHUSULVHV DQG RI RXU DVVHWV XQGHU PDQDJHPHQW
FRPSULVHGORDQVDJDLQVWJROGDQGRIRXUDVVHWVXQGHUPDQDJHPHQWFRPSULVHG3URGXFW)LQDQFH
ORDQV DQG RI RXU DVVHWV XQGHU PDQDJHPHQW FRPSULVHG SUHRZQHG DQG QHZ YHKLFOH ORDQV DQG
DQGRIRXUDVVHWVXQGHUPDQDJHPHQWFRPSULVHGSHUVRQDOORDQVUHVSHFWLYHO\2XUGLYHUVHUHYHQXH
VWUHDPV UHGXFH RXU GHSHQGHQFH RQ DQ\ SDUWLFXODU SURGXFW WKXV HQDEOLQJ XV WR VSUHDG DQG PLWLJDWH RXU ULVN
H[SRVXUH WR DQ\ SDUWLFXODU LQGXVWU\ EXVLQHVV RU FXVWRPHU VHJPHQW 7KH IROORZLQJ JUDSK LOOXVWUDWHV WKH
GLYHUVLILFDWLRQRIRXUSURGXFWSRUWIROLRRYHUWKHSDVWWKUHHILQDQFLDO\HDUV
+XEDQGVSRNHEXVLQHVVPRGHOZLWKHIILFLHQWFUHGLWSROLFLHVDQGSURFHGXUHVUHVXOWLQJLQKLJKDVVHWTXDOLW\
:H RSHUDWH D µKXEDQG VSRNH¶ EXVLQHVV PRGHO ZKHUH UHVSRQVLELOLWLHV IURP ORDQ RULJLQDWLRQ WR UHFRYHULHV RI
ORDQVDUHYHVWHGLQHDFKRIRXUEXVLQHVVRXWOHWVXQGHUWKHJHQHUDOVXSHUYLVLRQDQGFRQWURORIRXUKHDGRIILFHLQ
&KHQQDL2XUEXVLQHVVRXWOHWQHWZRUNVDUHIXOO\LQWHUFRQQHFWHGDQGHDFKEXVLQHVVRXWOHWLVFRQQHFWHGWRRXUKHDG
RIILFHWKURXJKRXUSURSULHWDU\(53SODWIRUP2XU(53SODWIRUPHQDEOHVRXUPDQDJHPHQWWRPRQLWRUHDFKORDQ
IURPRULJLQDWLRQWRUHSD\PHQWRUUHFRYHU\RIWKHORDQ
2XU VHQLRU PDQDJHPHQW LV SULPDULO\ UHVSRQVLEOH IRU WKH SROLF\ IRUPXODWLRQ IRU RXU EXVLQHVVHV +RZHYHU WKH
GHFLVLRQ PDNLQJSURFHVVLQFRQQHFWLRQ ZLWKORDQVLVGHFHQWUDOL]HGDQG PDMRUO\ YHVWHGLQRXUEXVLQHVVRXWOHWV
ZKLFKHQVXUHVVSHHG\FUHGLWDSSURYDOVDQGPRUHHIILFLHQWWXUQDURXQGWLPHVLQSURFHVVLQJORDQV
:H IRFXV RQ FORVHO\ PRQLWRULQJ RXU DVVHWV DQG ERUURZHUV WKURXJK RXU RIILFLDOV DW HDFK EXVLQHVV RXWOHW 2XU
RIILFLDOV DW WKH EXVLQHVV RXWOHWV GHYHORS UHODWLRQVKLSV ZLWK RXU WDUJHW FXVWRPHU EDVH ZKLFK HQDEOHV XV WR
FDSLWDOL]H RQORFDONQRZOHGJH:H IROORZVWULQJHQWFUHGLWSROLFLHVLQFOXGLQJOLPLWVRQFXVWRPHUH[SRVXUH DQG
WKHQDWXUHRIVHFXULW\SURYLGHGWREROVWHUWKHDVVHWTXDOLW\RIRXUORDQV)XUWKHUZHKDYHQXUWXUHGDFXOWXUHRI
DFFRXQWDELOLW\E\PDNLQJRXUSURGXFWH[HFXWLYHVDWHDFKEXVLQHVVRXWOHWUHVSRQVLEOHIRUORDQDGPLQLVWUDWLRQDQG
PRQLWRULQJ DV ZHOO DV UHFRYHU\ RI WKH ORDQV WKH\ RULJLQDWH :H KDYH D GHGLFDWHG WHDP RI RIILFLDOV DW HDFK
EXVLQHVV RXWOHW ZKR DUH UHVSRQVLEOH IRU L ORDQ RULJLQDWLRQ LL FUHGLW HYDOXDWLRQ LLL SUHOHQGLQJ ILHOG
LQYHVWLJDWLRQVZKHUHRXURIILFLDOVSHUVRQDOO\YLVLWRXUSURVSHFWLYHFXVWRPHUVDWWKHLUKRPHVRURIILFHVDQGY
SRVWOHQGLQJSURFHGXUHV7KHWHDPRIRIILFLDOVUHVSRQVLEOH IRURULJLQDWLRQRIDORDQLVDOVRUHVSRQVLEOHIRUWKH
WLPHO\VHUYLFLQJRIORDQVUHFRYHULHVDQGPRQLWRULQJWKHSHUIRUPDQFHRIHDFKORDQIURPRULJLQDWLRQWRFORVXUHRI
WKHORDQ:HW\SLFDOO\RIIHULQFHQWLYL]HGVDODU\VWUXFWXUHVWRVXFKRIILFLDOVZKHUHWKHLULQFHQWLYHVDUHOLQNHGWR
UHFRYHU\ RI LQVWDOOPHQWV RI WKH SULQFLSDO DPRXQW DQG LQWHUHVW RQ WKH ORDQV :H EHOLHYH RXU HIILFLHQW FUHGLW
SROLFLHV FUHGLW DSSURYDO SURFHGXUHV FUHGLW GHOLYHU\ SURFHVV DQG UHODWLRQVKLSEDVHG ORDQ DGPLQLVWUDWLRQ DQG
PRQLWRULQJ PHWKRGRORJ\KDYHKHOSHGXVLQFUHDVHRXUFXVWRPHUOR\DOW\DQGHDUQUHSHDWEXVLQHVVDQGFXVWRPHU
UHIHUUDOV
2XUVWULQJHQWFUHGLWSROLFLHV DQGUHODWLRQVKLSEDVHG PRGHOKDYHDOVR KHOSHGXV PDLQWDLQ KLJKDVVHWTXDOLW\DV
HYLGHQFHGE\UHODWLYHO\ORZ13$OHYHOV2XUJURVV13$VDVDSHUFHQWDJHRIWRWDOORDQDVVHWVZHUH DQG
DQGRXUQHW13$VDVDSHUFHQWDJHRIQHWORDQDVVHWVZHUH DQGHDFKDVRI6HSWHPEHU
DQG0DUFKUHVSHFWLYHO\
$GYDQFHGSURFHVVHVDQGWHFKQRORJ\V\VWHPV
:H EHOLHYH WKDW ZH KDYH LPSOHPHQWHG D µEHVW LQ FODVV¶ WHFKQRORJ\ SODWIRUP DFURVV RXU RSHUDWLRQV :H KDYH
LQYHVWHGLQRXUWHFKQRORJ\V\VWHPVDQGSURFHVVHVWRLPSURYHRYHUDOOSURGXFWLYLW\DQGHQVXUHJRRGPDQDJHPHQW
RI FXVWRPHU FUHGLW TXDOLW\ (DFK EXVLQHVV RXWOHW LV FRQQHFWHG ZLWK RXU VHUYHUV LQ RXU KHDG RIILFH LQ &KHQQDL
WKURXJK D SURSULHWDU\ (53 SODWIRUP 7KLV WHFKQRORJ\ LQFUHDVHV RXU RSHUDWLRQDO DQG PDQDJHULDO HIILFLHQF\ E\
VWUHDPOLQLQJRXUFUHGLWDSSURYDODGPLQLVWUDWLRQDQGPRQLWRULQJSURFHVVHVWRPHHWFXVWRPHUUHTXLUHPHQWVRQD
UHDOWLPHEDVLV,QDGGLWLRQZHKDYHLPSOHPHQWHGWHFKQRORJ\OHGSURFHVVLQJV\VWHPVWRPDNHRXUDSSUDLVDODQG
FROOHFWLRQSURFHVVHVPRUHHIILFLHQWIDFLOLWDWHUDSLGGHOLYHU\RIFUHGLWWRRXUFXVWRPHUVDQGDXJPHQWWKHEHQHILWV
RIRXUUHODWLRQVKLSEDVHGDSSURDFK:HDOVREHOLHYHWKDWRXUDGYDQFHGWHFKQRORJ\V\VWHPVHQDEOHXVWRUHVSRQG
WRPDUNHWRSSRUWXQLWLHVDQGFKDOOHQJHVVZLIWO\LPSURYHWKHTXDOLW\RIVHUYLFHWRRXUFXVWRPHUVDQGLPSURYHRXU
ULVNPDQDJHPHQWFDSDELOLWLHV
([SHULHQFHGVHQLRUPDQDJHPHQWWHDP
2XU%RDUGFRQVLVWVRI'LUHFWRUVDQGKDVH[WHQVLYHH[SHULHQFHLQWKHILQDQFLDOVHUYLFHVVHFWRU (DFKRIRXU
VHQLRU PDQDJHPHQW SHUVRQQHO KDV H[WHQVLYH H[SHULHQFH DQG LQGHSWK LQGXVWU\ NQRZOHGJH DQG H[SHUWLVH 2XU
PDQDJHPHQW SURPRWHV D UHVXOWRULHQWHG FXOWXUH WKDW UHZDUGV RXU HPSOR\HHV RQ WKH EDVLV RI PHULW ,Q RUGHU WR
PDLQWDLQRXUVWURQJFUHGLWDSSUDLVDODQGULVNPDQDJHPHQWV\VWHPVDQGWRHQIRUFHRXUFUHGLWSROLFLHVZHHPSOR\
DQXPEHURIVHQLRUPDQDJHUVZKRKDYHH[WHQVLYHH[SHULHQFHLQWKH,QGLDQEDQNLQJDQGILQDQFLDOVHUYLFHVVHFWRU
DQG LQ VSHFLDOL]HG ILQDQFH ILUPV SURYLGLQJ ORDQV WR UHWDLO FXVWRPHUV :H EHOLHYH WKDW WKH LQGHSWK LQGXVWU\
NQRZOHGJHRIRXUPDQDJHPHQWDQGSURIHVVLRQDOVSURYLGHXVZLWKDGLVWLQFWFRPSHWLWLYHDGYDQWDJH
6WUDWHJ\
2XUNH\VWUDWHJLFSULRULWLHVDUHDVIROORZV
&RQWLQXHWRJURZRXUVPDOOHQWHUSULVH ILQDQFHVHJPHQWE\ FDSLWDOL]LQJRQ WKH 6KULUDP*URXSEUDQGQDPH
DQGHFRV\VWHP
:LWKRXU PDUNHWOHDGHUVKLSSRVLWLRQLQWKH VPDOOHQWHUSULVHILQDQFHVHJPHQW ZH EHOLHYHWKDW ZH DUH XQLTXHO\
SRVLWLRQHGWRWDNHDGYDQWDJHRIWKHH[SHFWHGJURZWKSRWHQWLDOLQWKLVVHJPHQWDQGZHZLOOFRQWLQXHWRIRFXVRQ
JURZLQJWKLVEXVLQHVV:HEHOLHYHWKDWRXUDVVRFLDWLRQZLWKWKH6KULUDP*URXSDQGWKHVWUHQJWKRIWKH6KULUDP
EUDQG ZLOO DOORZ XV WR FRQWLQXH WR H[SDQG ZLWKLQ RXU WDUJHW PDUNHW LQ H[LVWLQJ DQG QHZ JHRJUDSKLHV ZLWK
PLQLPDO PDUNHWLQJ VSHQG :H LQWHQG WR FRQWLQXH WR FDSLWDOL]H RQ WKH 6KULUDP EUDQG QDPH DQG LQIUDVWUXFWXUH
SURYLGHG E\ WKH 6KULUDP *URXS SDUWLFXODUO\ HQWLWLHV RSHUDWLQJ XQGHU WKH 6KULUDP &KLWV EUDQG QDPH (QWLWLHV
RSHUDWLQJ XQGHU WKH 6KULUDP &KLWV EUDQG QDPH FROOHFW FKLW GHSRVLWV IURP VHOIHPSOR\HG SURIHVVLRQDOV
ZKROHVDOHUHWDLO GHDOHUV PHUFKDQWV EXLOGHUV PDQXIDFWXUHUV DQG VPDOO DQG PHGLXP VFDOH EXVLQHVV RSHUDWRUV
ZKLFKSURYLGHVXVZLWKDQH[WHQVLYHGDWDEDVHRISUHVFUHHQHGSRWHQWLDOERUURZHUVSDUWLFXODUO\IRURXUORDQVLQ
WKH VPDOO HQWHUSULVH ILQDQFH VHJPHQW ,Q DGGLWLRQ ZH LQWHQG WR FRQWLQXH WR FDSLWDOL]H RQ WKH 6KULUDP *URXS
HFRV\VWHP SDUWLFXODUO\ WKH FULWLFDO FDSDELOLWLHV DQG LQVWLWXWLRQDO NQRZOHGJH RI HQWLWLHV RSHUDWLQJ XQGHU WKH
6KULUDP&KLWVEUDQGQDPHLQFOXGLQJWKHLUSURFHVVHVDQGFXVWRPHUFUHGLWKLVWRULHVDQGUHSD\PHQWUHFRUGV
&RQWLQXHWRIRFXVRQFRQWURORIRSHUDWLQJFRVWVDQGRSHUDWLRQDOHIILFLHQF\
:KLOH ZH KDYH JURZQ UDSLGO\ VLQFH RXU LQFRUSRUDWLRQ LQ WR EHFRPH WKH PDUNHW OHDGHU LQ WKH VPDOO ORDQ
VHJPHQW ZLWK DQ HVWLPDWHG PDUNHW VKDUH RI LQ ILVFDO 6RXUFH $QDO\VLV RI WKH 060( 6PDOO /RDQ
&UHGLW0DUNHWIRU1%)&VLQ,QGLD-XQHE\)URVW6XOOLYDQZHEHOLHYHZHKDYHPDLQWDLQHGHIILFLHQF\
LQRXURSHUDWLRQV)RUWKHVL[PRQWKVHQGHG6HSWHPEHUDQG ILQDQFLDO\HDUVDQGZH
UHFRUGHG SURILW DIWHU WD[ RI ` ODNKV ` ODNKV ` ODNKV DQG ` ODNKV
UHVSHFWLYHO\ $V ZH FRQWLQXH WR LQWURGXFH QHZ SURGXFW RIIHULQJV DW HDFK RI RXU H[LVWLQJ EXVLQHVV RXWOHWV DQG
HVWDEOLVKQHZEXVLQHVVRXWOHWVZHLQWHQGWRFRQWLQXHWRSXUVXHWKHIROORZLQJLQLWLDWLYHVDPRQJRWKHUVWRUHGXFH
FRVWVDQGHQKDQFHRXURSHUDWLRQDOHIILFLHQF\VRWKDWRXURSHUDWLQJFRVWVGRQRWRXWSDFHRXUJURZWK
FRQWLQXDOO\ DVVHVV DQG LPSURYH RXU WHFKQRORJ\ SODWIRUP VR WKDW RXU FUHGLW DSSURYDO DGPLQLVWUDWLRQ DQG
PRQLWRULQJ SURFHVVHV DOORZ XV WR VHUYLFH RXU FXVWRPHUV RQ D UHDOWLPH EDVLV ZKLOH HQVXULQJ WKDW RXU
DSSUDLVDODQGFROOHFWLRQSURFHVVHVDUHHIIHFWLYHDQGPLQLPL]HULVNDQG
VHHNDGGLWLRQDOZD\VWRFDSLWDOL]HRQWKHODUJHFXVWRPHUEDVHDQGZLGHVSUHDGQHWZRUNRIEXVLQHVVRXWOHWV
RIWKH6KULUDP*URXSLQSDUWLFXODUHQWLWLHVVXFKDV6KULUDP7UDQVSRUW)LQDQFH&RPSDQ\/LPLWHGRQHRIWKH
ODUJHVW RUJDQL]HG DVVHW ILQDQFLQJ 1%)&V LQ ,QGLD DQG HQWLWLHV RSHUDWLQJ XQGHU WKH 6KULUDP &KLWV EUDQG
QDPH
)XUWKHU H[SDQG RSHUDWLRQV E\ LQWURGXFLQJ RXU IXOO UDQJH RI SURGXFWV LQ DOO RI RXU EXVLQHVV RXWOHWV DQG
JURZLQJRXUEXVLQHVVRXWOHWQHWZRUN
$V RI 6HSWHPEHU ZH KDG EXVLQHVV RXWOHWV DFURVV ,QGLD ZLWK D VLJQLILFDQW SUHVHQFH LQ VRXWK
,QGLDKRZHYHUQRWDOORIRXUEXVLQHVVRXWOHWVFXUUHQWO\RIIHURXUIXOOUDQJHRISURGXFWV$VDQLQWHUQDOSROLF\
ZHW\SLFDOO\LQWURGXFH QHZSURGXFWVLQDSDUWLFXODUORFDWLRQRQO\DIWHUHYDOXDWLQJWKHUHJLRQDO PDUNHWDQGWKH
GHPDQGIRUHDFKLQGLYLGXDOSURGXFW,QDGGLWLRQZHGRQRWLQWURGXFHQHZSURGXFWVDWDEXVLQHVVRXWOHWXQWLOWKH
VWDIIVWUHQJWKDQGH[SHULHQFHDWWKHSDUWLFXODUORFDWLRQLVDGHTXDWHWRVXSSRUWWKHQHZSURGXFWRUSURGXFWV$VRI
6HSWHPEHU DSSUR[LPDWHO\ RI RXU EXVLQHVV RXWOHWV RIIHUHG DOO RI RXU SURGXFWV $V D SDUW RI RXU
VWUDWHJ\ZHLQWHQGWRJUDGXDOO\LQWURGXFHRXUHQWLUHUDQJHRISURGXFWRIIHULQJVDWRXUH[LVWLQJ EXVLQHVVRXWOHWV
DFURVV,QGLDEDVHGRQWKHUHJLRQDOPDUNHWGHPDQGIRUHFDVW
,Q DGGLWLRQ ZH LQWHQG WR H[SDQG RXU RSHUDWLRQV WKURXJK QHZ EXVLQHVV RXWOHWV LQ FLWLHV DQG WRZQV ZKHUH ZH
KLVWRULFDOO\KDYHKDGUHODWLYHO\OLPLWHGRSHUDWLRQVVXFKDVLQHDVWHUQDQGQRUWKHUQSDUWVRI,QGLDDQGWRIXUWKHU
FRQVROLGDWH RXU SRVLWLRQ DQG RSHUDWLRQV LQ WKH ZHVWHUQ DQG VRXWKHUQ SDUWV RI ,QGLD 2XU EXVLQHVV LV FXUUHQWO\
FRQFHQWUDWHG LQ VRXWK ,QGLD ZLWK RI RXU EXVLQHVV RXWOHWV DV RQ 6HSWHPEHU ORFDWHG LQ WKH
VWDWHVRI7DPLO1DGX$QGKUD3UDGHVK.DUQDWDNDDQG.HUDOD:HLQWHQGWRFRQWLQXHWRPDNHHIIRUWVWRH[SDQG
LQWR RWKHU UHJLRQV LQ ,QGLD ZLWK D IRFXV RQ 7LHU ,, DQG 7LHU ,,, FLWLHV ZKHUH ZH EHOLHYH WKH GHPDQG IRU RXU
SURGXFWVZLOOJURZVWHDGLO\LQWKHQHDUIXWXUH
,PSURYHRXUFUHGLWUDWLQJVWRGHFUHDVHRXUFRVWRIIXQGV
:HIXQGRXUFDSLWDOUHTXLUHPHQWVWKURXJKDYDULHW\RIVRXUFHVLQFOXGLQJWHUPDQGZRUNLQJFDSLWDOORDQVIURP
EDQNVLVVXDQFHRIQRQFRQYHUWLEOHGHEHQWXUHVDQGFRPPHUFLDOSDSHUDQGIL[HGGHSRVLWVIURPUHWDLOFXVWRPHUV
)RUGHWDLOVRIRXUFUHGLWUDWLQJVSOHDVHVHHVHFWLRQWLWOHG³2XU%XVLQHVV±&UHGLW5DWLQJ´RQSDJH
:H EHOLHYH WKDW ZH KDYH EHHQDEOHWRDFKLHYH UHODWLYHO\VWDEOHDQGFRPSHWLWLYH FRVWRI IXQGV IURPD UDQJH RI
VRXUFHVGHVSLWHWKHGLIILFXOWFRQGLWLRQVLQWKHJOREDODQG,QGLDQHFRQRP\DQGWKHUHVXOWLQJUHGXFHGOLTXLGLW\DQG
LQFUHDVHLQLQWHUHVWUDWHVSULPDULO\GXHWRRXUFUHGLWUDWLQJVDQGWKHJRRGZLOODVVRFLDWHGZLWKWKH6KULUDPEUDQG
QDPH%DVHGRQRXULQFUHDVLQJO\VWURQJEDODQFHVKHHW ZHEHOLHYHWKDW ZH ZLOOEHDEOHWRIXUWKHULPSURYHRXU
FUHGLWUDWLQJVZKLFKPD\GHFUHDVHRXUFRVWRIIXQGV
*URZRXUKRXVLQJILQDQFHEXVLQHVV
:HEHJDQSURYLGLQJKRPHORDQILQDQFLQJWKURXJKRXUVXEVLGLDU\6KULUDP+RXVLQJ)LQDQFH/LPLWHG³6KULUDP
+RXVLQJ´ LQ WKH ILQDQFLDO \HDU ,Q $SULO 9DOLDQW 0DXULWLXV 3DUWQHUV )', /LPLWHG LQYHVWHG LQ
6KULUDP+RXVLQJDQGKROGVRIWKHWRWDOVKDUHFDSLWDORI6KULUDP+RXVLQJ$VRI6HSWHPEHUZH
KDYHGLVEXUVHG `ODNKVLQKRPHORDQVSULPDULO\WRPLGGOHLQFRPHFXVWRPHUVLQVHPLXUEDQORFDWLRQV
2XUKRXVLQJ ILQDQFHEXVLQHVVDVRI 6HSWHPEHUDJJUHJDWHG `ODNKV:HEHOLHYHWKDW ZHDUH
ZHOO SRVLWLRQHG WR JURZ RXU KRXVLQJ ILQDQFH EXVLQHVV WKURXJK RXU HVWDEOLVKHG LQIUDVWUXFWXUH RXU H[LVWLQJ
FXVWRPHU EDVH DQG RXU DVVRFLDWLRQ ZLWK RWKHU HQWLWLHV LQ WKH 6KULUDP *URXS :H DOVR EHOLHYH WKDW WKH KRXVLQJ
ILQDQFH VHJPHQW LQ ,QGLD LV XQGHUSHQHWUDWHG DV FRPSDUHG WR PRUH GHYHORSHG PDUNHWV 7KH ,QGLDQ KRXVLQJ
ILQDQFH PDUNHWLVFKDUDFWHUL]HGE\DQDFWLYHSULPDU\ PRUWJDJH PDUNHW 7KHVHFRQGDU\ PDUNHWLVVWLOOHYROYLQJ
+RXVLQJORDQVDVDSHUFHQWDJHRI*'3KDYHUHPDLQHGDWDSSUR[LPDWHO\VLJQLILFDQWO\ORZHUWKDQWKHOHYHOV
DFKLHYHG LQ PRVW GHYHORSHG FRXQWULHV :H EHOLHYH WKLV XQGHUSHQHWUDWLRQ ZLOO LQFUHDVH GHPDQG IRU KRXVLQJ
ILQDQFHDQGKHOSRXUSURGXFWJURZVWHDGLO\LQWKHQHDUIXWXUH
GENERAL INFORMATION
2XU &RPSDQ\ ZDV LQFRUSRUDWHG DV 6KULUDP +LUH3XUFKDVH )LQDQFH 3ULYDWH /LPLWHG RQ 0DUFK DV D
SULYDWHOLPLWHGFRPSDQ\XQGHUWKH &RPSDQLHV$FWDQGZDVJUDQWHGDFHUWLILFDWHRILQFRUSRUDWLRQE\WKH
5R&:LWKHIIHFWIURP2FWREHUWKHVWDWXVRIRXU&RPSDQ\ZDVFKDQJHGWRDSXEOLFOLPLWHGFRPSDQ\
SXUVXDQWWRZKLFKWKHQDPHRIRXU&RPSDQ\ZDVFKDQJHGWR6KULUDP+LUH3XUFKDVH)LQDQFH/LPLWHG7KHQDPH
RI RXU &RPSDQ\ ZDV VXEVHTXHQWO\ FKDQJHG WR 6KULUDP &LW\ 8QLRQ )LQDQFH /LPLWHG DQG D IUHVK FHUWLILFDWH RI
LQFRUSRUDWLRQGDWHG$SULOZDVLVVXHGE\WKH5R&
2XU&RPSDQ\KROGVDFHUWLILFDWHRIUHJLVWUDWLRQGDWHG$SULOLVVXHGLQOLHXRIWKHRULJLQDOUHJLVWUDWLRQ
GDWHG 6HSWHPEHU EHDULQJ UHJLVWUDWLRQ QR LVVXHG E\ WKH 5%, WR FDUU\ RQ WKH DFWLYLWLHV RI D
1%)&XQGHUVHFWLRQ,$RIWKH5%,$FW
5HJLVWHUHG2IILFH
$QJDSSD1DLFNHQ6WUHHW
&KHQQDL
7DPLO1DGX,QGLD
&RUSRUDWH2IILFH
6DQWKRPH+LJK5RDG
0\ODSRUH&KHQQDL
7DPLO1DGX,QGLD
7HOHSKRQH
)DFVLPLOH
:HEVLWHZZZVKULUDPFLW\LQ
5HJLVWUDWLRQ
'HWDLOV
&RPSDQ\UHJLVWUDWLRQQXPEHUZLWK5R&
&,1
1%)&UHJLVWUDWLRQFHUWLILFDWHQXPEHUXQGHUVHFWLRQ,$RIWKH5%,$FW
5HJLVWUDWLRQ,GHQWLILFDWLRQQXPEHU
/713/&
&RQWHQWVRIWKH0HPRUDQGXPRI$VVRFLDWLRQRIWKH&RPSDQ\DVUHJDUGVLWVREMHFWV
)RU LQIRUPDWLRQ RQ WKH &RPSDQ\¶V PDLQ REMHFWV SOHDVH VHH WKH VHFWLRQ WLWOHG ³+LVWRU\ DQG &HUWDLQ &RUSRUDWH
0DWWHUV ± 0DLQ 2EMHFWV´ RQ SDJH 3OHDVH UHIHU WR &ODXVH ,,, RI WKH 0HPRUDQGXP RI $VVRFLDWLRQ RI WKH
&RPSDQ\ IRU WKH FRPSOHWH WH[W RI WKH PDLQ REMHFWV DQG RWKHU REMHFWV RI WKH &RPSDQ\ 7KH 0HPRUDQGXP RI
$VVRFLDWLRQRIWKH &RPSDQ\LVD PDWHULDOGRFXPHQWIRULQVSHFWLRQLQUHODWLRQWRWKH,VVXH)RUIXUWKHUGHWDLOV
VHHWKHVHFWLRQWLWOHG³0DWHULDO&RQWUDFWVDQG'RFXPHQWVIRU,QVSHFWLRQ´RQSDJH
/LDELOLW\RIWKHPHPEHUVRIWKH&RPSDQ\
/LPLWHG
1DPHV RI VLJQDWRULHV WR WKH 0HPRUDQGXP RI $VVRFLDWLRQ RI WKH &RPSDQ\ DQG WKH QXPEHU RI VKDUHV
VXEVFULEHGE\WKHP
*LYHQ EHORZ DUH WKH QDPHV RI WKH VLJQDWRULHV RI WKH 0HPRUDQGXP RI $VVRFLDWLRQ RI WKH &RPSDQ\ DQG WKH
QXPEHURIHTXLW\VKDUHVVXEVFULEHGE\WKHPDWWKHWLPHRIVLJQLQJRIWKH0HPRUDQGXPRI$VVRFLDWLRQ
1XPEHURIHTXLW\VKDUHVRIIDFHYDOXHRI``HDFK
1DPHRIVLJQDWRU\
0U096HHWKDSDWK\
0U*6XQGDUHVDQ
7RWDO
$GGUHVVRIWKH5HJLVWUDURI&RPSDQLHV
7KH5HJLVWUDURI&RPSDQLHV
%ORFN1R%:LQJQG)ORRU
6KDVWUL%KDZDQ
+DGGRZV5RDG
&KHQQDL7DPLO1DGX,QGLD
7HOHSKRQH
)DFVLPLOH
(PDLOURFFKHQQDL#PFDJRYLQ
&RPSOLDQFH2IILFHU
0U&5'DVK
&RPSDQ\6HFUHWDU\
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
6DQWKRPH+LJK5RDG0\ODSRUH
&KHQQDL7DPLO1DGX,QGLD
7HO1R
)D[
(PDLOVFXIQFG#VKULUDPFLW\LQ
,QYHVWRUVFDQFRQWDFWWKH&RPSOLDQFH2IILFHURUWKH5HJLVWUDUWRWKH,VVXHLQFDVHRIDQ\SUH,VVXHRUSRVW,VVXH
UHODWHG SUREOHPV VXFK DV QRQUHFHLSW RI $OORWPHQW $GYLFH FUHGLW RI $OORWWHG 1&'V LQ EHQHILFLDU\ DFFRXQWV
'HEHQWXUH &HUWLILFDWHV IRU $SSOLFDQWV ZKR KDYH DSSOLHG IRU $OORWPHQW LQ SK\VLFDO IRUP UHIXQG RUGHUV DQG
LQWHUHVWRQWKH$SSOLFDWLRQ$PRXQWV
$OOJULHYDQFHVUHODWLQJWRWKH,VVXHPD\EHDGGUHVVHGWRWKH5HJLVWUDUWRWKH,VVXHJLYLQJIXOOGHWDLOVVXFKDVQDPH
$SSOLFDWLRQ)RUPQXPEHUDGGUHVVRIWKH$SSOLFDQWQXPEHURI1&'VDSSOLHGIRU6HULHVRI1&'VDSSOLHGIRUDPRXQW
SDLG RQ DSSOLFDWLRQ 'HSRVLWRU\ 3DUWLFLSDQW QDPH DQG FOLHQW LGHQWLILFDWLRQ QXPEHU DQG WKH FROOHFWLRQ FHQWUH RI WKH
0HPEHUVRIWKH6\QGLFDWHZKHUHWKH$SSOLFDWLRQZDVVXEPLWWHG
$OOJULHYDQFHVUHODWLQJWRWKH$6%$SURFHVVPD\EHDGGUHVVHGWRWKH5HJLVWUDUWRWKH,VVXHZLWKDFRS\WRHLWKHUDWKH
UHOHYDQW'HVLJQDWHG%UDQFKRIWKH6&6%ZKHUHWKH$SSOLFDWLRQ)RUPZDVVXEPLWWHGE\WKH$6%$$SSOLFDQWRUE
WKHFRQFHUQHG0HPEHURIWKH6\QGLFDWHDQGWKHUHOHYDQW'HVLJQDWHG%UDQFKRIWKH6&6%LQWKHHYHQWRIDQ$SSOLFDWLRQ
VXEPLWWHGE\DQ$6%$$SSOLFDQWDWDQ\RIWKH6\QGLFDWH$6%$&HQWUHVJLYLQJIXOOGHWDLOVVXFKDVQDPHDGGUHVVRI
$SSOLFDQW $SSOLFDWLRQ )RUP QXPEHU VHULHVRSWLRQ DSSOLHG IRU QXPEHU RI 1&'V DSSOLHG IRU DPRXQW EORFNHG RQ
$SSOLFDWLRQ
$OOJULHYDQFHVDULVLQJRXWRI$SSOLFDWLRQVIRUWKH1&'VPDGHWKURXJK7UDGLQJ0HPEHUVPD\EHDGGUHVVHGGLUHFWO\WR
WKH%6(
&KLHI)LQDQFLDO2IILFHU
0V6XEKDVUL6ULUDP
6DQWKRPH+LJK5RDG0\ODSRUH
&KHQQDL7DPLO1DGX,QGLD
7HO1R
)D[
(PDLOVFXIQFG#VKULUDPFLW\LQ
/HDG0DQDJHUVWRWKH,VVXH
,&,&,6HFXULWLHV/LPLWHG
,&,&,&HQWUH+73DUHNK0DUJ&KXUFKJDWH
0XPEDL,QGLD
7HOHSKRQH
)DFVLPLOH
(PDLO VFXIQFG#LFLFLVHFXULWLHVFRP
,QYHVWRU*ULHYDQFH(PDLOFXVWRPHUFDUH#LFLFLVHFXULWLHVFRP
:HEVLWHZZZLFLFLVHFXULWLHVFRP
&RQWDFWSHUVRQ0U0DQYHQGUD7LZDUL0V3D\DO.XONDUQL
&RPSOLDQFH2IILFHU 0U6XELU6DKD
6(%,5HJLVWUDWLRQQXPEHU,10
$.&DSLWDO6HUYLFHV/LPLWHG
)UHH3UHVV+RXVHUG)ORRU)UHH3UHVV-RXUQDO0DUJ
1DULPDQ3RLQW0XPEDL
7HOHSKRQH
)DFVLPLOH
(PDLOVFXIQFG#DNJURXSFRLQ
,QYHVWRU*ULHYDQFH(PDLOLQYHVWRUJULHYDQFH#DNJURXSFRLQ
:HEVLWHZZZDNFDSLQGLDFRP
&RQWDFWSHUVRQ0V$NVKDWD7DPEH0U6LGGKDUWK6KDK
&RPSOLDQFH2IILFHU0U9LNDV$JDUZDO
&RPSOLDQFH2IILFHU(PDLOYLNDVDJDUZDO#DNJURXSFRLQ
6(%,5HJLVWUDWLRQ1XPEHU,10
6WDWHPHQWRI,QWHU6H$OORFDWLRQRI5HVSRQVLELOLWLHVIRUWKH,VVXH
7KHIROORZLQJWDEOHVHWVIRUWKWKHGLVWULEXWLRQRIUHVSRQVLELOLW\DQGFRRUGLQDWLRQIRUYDULRXVDFWLYLWLHVDPRQJVW
WKH/HDG0DQDJHUV
1R
$FWLYLWLHV
'XH GLOLJHQFH RI ,VVXHU¶V RSHUDWLRQV PDQDJHPHQW EXVLQHVV SODQV OHJDO
HWF
'UDIWLQJ DQG GHVLJQ RI WKH 'UDIW 3URVSHFWXV3URVSHFWXV DQG RI VWDWXWRU\
DGYHUWLVHPHQW LQFOXGLQJ $EULGJHG 3URVSHFWXV 7KH /HDG 0DQDJHUV VKDOO
HQVXUH FRPSOLDQFH ZLWK VWLSXODWHG UHTXLUHPHQWV DQG FRPSOHWLRQ RI
SUHVFULEHGIRUPDOLWLHVZLWKWKH%6(5R&DQG6(%,LQFOXGLQJILQDOL]DWLRQ
RI 'UDIW 3URVSHFWXV3URVSHFWXV DQG 5R& ILOLQJ GHSRVLW RI VHFXULW\
GHSRVLWZLWK'HVLJQDWHG6WRFN([FKDQJH
&RRUGLQDWLRQZLWK$XGLWRUVRQFRPIRUWOHWWHUDQGFRRUGLQDWLRQZLWKOHJDO
FRXQVHOIRUOHJDORSLQLRQ
6WUXFWXULQJ RI YDULRXV LVVXDQFH RSWLRQV ZLWK UHODWLYH FRPSRQHQWV DQG
IRUPDOLWLHVHWF
'UDIWLQJ DQG DSSURYDO RI DOO SXEOLFLW\ PDWHULDO RWKHU WKDQ VWDWXWRU\
DGYHUWLVHPHQW DV PHQWLRQHG LQ DERYH LQFOXGLQJ FRUSRUDWH
DGYHUWLVHPHQWEURFKXUHHWF
$SSRLQWPHQW RI RWKHU LQWHUPHGLDULHV YL] 5HJLVWUDU SULQWHUV DGYHUWLVLQJ
DJHQF\/HDG%URNHUVDQG%DQNHUVWRWKH,VVXH
3UHSDUDWLRQRIURDGVKRZSUHVHQWDWLRQ)$4V
,QGLYLGXDO+8)PDUNHWLQJVWUDWHJ\ZKLFKZLOOFRYHULQWHUDOLD
)LQDOL]HFROOHFWLRQFHQWHUV
ƒ
ƒ
)ROORZXS RQ GLVWULEXWLRQ RI SXEOLFLW\ DQG ,VVXH PDWHULDO LQFOXGLQJ
IRUP3URVSHFWXVDQGGHFLGLQJRQWKHTXDQWXPRIWKH,VVXHPDWHULDO
'RPHVWLFLQVWLWXWLRQVEDQNVPXWXDOIXQGVPDUNHWLQJVWUDWHJ\
ƒ
)LQDOL]H WKH OLVW DQG GLYLVLRQ RI LQYHVWRUV IRU RQH RQ RQH PHHWLQJV
LQVWLWXWLRQDODOORFDWLRQ
1RQLQVWLWXWLRQDOPDUNHWLQJVWUDWHJ\ZKLFKZLOOFRYHULQWHUDOLD
)LQDOL]H PHGLD PDUNHWLQJ DQG SXEOLF UHODWLRQ VWUDWHJ\ DQG SXEOLFLW\
ƒ
EXGJHW
ƒ
)LQDOL]HFHQWHUVIRUKROGLQJFRQIHUHQFHVIRUEURNHUVHWF
&RRUGLQDWLRQZLWKWKHVWRFNH[FKDQJHVIRUWKHELGGLQJVRIWZDUH
&RRUGLQDWLRQIRUVHFXULW\FUHDWLRQE\ZD\RIH[HFXWLRQRI'HEHQWXUH7UXVW
'HHG'HHGRI+\SRWKHFDWLRQ
&RRUGLQDWLRQ ZLWK %DQNHUV WR WKH ,VVXH IRU PDQDJHPHQW RI (VFURZ
$FFRXQW IRU FROOHFWLRQ FHUWLILFDWH DQG ILQDOL]DWLRQ RI %DVLV RI $OORWPHQW
ZLWK'HVLJQDWHG6WRFN([FKDQJH
7KHSRVW,VVXHDFWLYLWLHVIRUWKH,VVXHLQYROYLQJHVVHQWLDOIROORZXSVWHSV
ZKLFKLQFOXGHFDOFXODWLRQRILQWHUHVWDQG7'6SD\DEOHRQDSSOLFDWLRQDQG
UHIXQG PRQH\ ILQDOL]DWLRQ RI GUDIW RI RWKHU VWDWLRQHU\ LWHPV OLNH UHIXQG
RUGHU $OORWPHQW $GYLFH 'HEHQWXUH &HUWLILFDWH OHWWHU RI DOORWPHQW HWF
GLVSDWFKRIUHIXQGVGHPDWDQGGHOLYHU\RIVHFXULWLHVILQDOL]DWLRQRIOLVWLQJ
DQG WUDGLQJ RI LQVWUXPHQWV ZLWK WKH YDULRXV DJHQFLHV FRQQHFWHG ZLWK WKH
5HVSRQVLELOLW\
,6HF$.&DSLWDO
&RRUGLQDWRU
,6HF
,6HF$.&DSLWDO
,6HF
,6HF$.&DSLWDO
,6HF
,6HF$.&DSLWDO
,6HF
,6HF$.&DSLWDO
,6HF
,6HF$.&DSLWDO
,6HF$.&DSLWDO
,6HF
$.&DSLWDO
,6HF$.&DSLWDO
$.&DSLWDO
,6HF$.&DSLWDO
$.&DSLWDO
,6HF$.&DSLWDO
,6HF$.&DSLWDO
,6HF
,6HF
,6HF$.&DSLWDO
,6HF
1R
$FWLYLWLHV
ZRUN VXFK DV WKH 5HJLVWUDU WR WKH ,VVXH DQG %DQNHUV WRWKH ,VVXH DQG WKH
UHGUHVVDORILQYHVWRUJULHYDQFHVLQUHODWLRQWRSRVWLVVXHDFWLYLWLHV
&RRUGLQDWLRQIRUUHOHDVHRIVHFXULW\GHSRVLW
/HDG%URNHUV
$.6WRFNPDUW3ULYDWH/LPLWHG
)UHH3UHVV+RXVH
)UHH3UHVV-RXUQDO+RXVH
1DULPDQ3RLQW
0XPEDL
7HOHSKRQH
)DFVLPLOH
(PDLODQNLW#DNJURXSFRLQ
:HEVLWHZZZDNFDSLQGLDFRP
&RQWDFWSHUVRQ0U$QNLW*XSWD
6(%,UHJLVWUDWLRQQXPEHU
,1%,1%
(GHOZHLVV%URNLQJ/LPLWHG
(GHOZHLVV+RXVH
2II&675RDG
.DOLQD
0XPEDL
7HOHSKRQH
)DFVLPLOH
(PDLODPLWGDOYL#HGHOZHLVVILQFRP
SUDNDVKERULFKD#HGHOZHLVVILQFRP
:HEVLWHZZZHGHOZHLVVILQFRP
,QYHVWRUJULHYDQFHHPDLO
KHOSGHVN#HGHOZHLVVLQ
&RQWDFWSHUVRQ0U$PLW'DOYL0U3UDNDVK
%RULFKD
6(%,UHJLVWUDWLRQQXPEHU
,1%,1),1(,1%
5HVSRQVLELOLW\
&RRUGLQDWRU
$[LV&DSLWDO/LPLWHG
$[LV+RXVH
/HYHO
&:DGLD,QWHUQDWLRQDO&HQWUH
3%0DUJ:RUOL
0XPEDL
7HOHSKRQH
)DFVLPLOH
(PDLOYLQD\DNNHWNDU#D[LVFDSLQ
:HEVLWHZZZD[LVFDSLWDOFRLQ
&RQWDFWSHUVRQ0U9LQD\DN.HWNDU
6(%,UHJLVWUDWLRQQXPEHU,10
+')&6HFXULWLHV/LPLWHG
,7KLQN7HFKQR&DPSXV%XLOGLQJ%
³$OSKD´2IILFH)ORRU
2SS&URPSWRQ*UHDYHV
1HDU.DQMXPDUJ6WDWLRQ.DQMXPDUJ(DVW
0XPEDL
7HOHSKRQH
)DFVLPLOH
(PDLOVXQLOUDXOD#KGIFVHFFRP
VKDUPLODNDPEOL#KGIFVHFFRP
:HEVLWHZZZKGIFVHFFRP
,QYHVWRUJULHYDQFHHPDLO
FXVWRPHUFDUH#KGIFVHFFRP
&RQWDFWSHUVRQ0U6XQLO5DXOD0V6KDUPLOD
.DPEOL
6(%,UHJLVWUDWLRQQXPEHU,1%
,QGLD,QIROLQH/LPLWHG
,,)/+RXVH6XQ,QRWHFK3DUN
UGIORRU5RDG1R9
3ORW1R%
0,'&7KDQH,QGXVWULDO$UHD
:DJOH(VWDWH7KDQH:HVW
7HOHSKRQH
)DFVLPLOH
(PDLOQFG#LQGLDLQIROLQHFRP
:HEVLWHZZZLQGLDLQIROLQHFRP
,QYHVWRUJULHYDQFHHPDLOQFG#LQGLDLQIROLQHFRP
&RQWDFWSHUVRQ0U$QZDU$KPHG
6(%,UHJLVWUDWLRQQXPEHU,1%
-0)LQDQFLDO6HUYLFHV/LPLWHG
.DPDQZDOD&KDPEHUV
6LU305RDG)RUW
0XPEDL
7HOHSKRQH
)DFVLPLOH
(PDLOURKLWVLQJK#MPIOFRP
:HEVLWHMPILQDQFLDOVHUYLFHVLQ
,&,&,6HFXULWLHV/LPLWHGDVD/HDG%URNHU
,&,&,&HQWUH+73DUHNK0DUJ
&KXUFKJDWH0XPEDL
7HOHSKRQH
)DFVLPLOH
(PDLOVFXIQFG#LFLFLVHFXULWLHVFRP
,QYHVWRU*ULHYDQFH(PDLO
FXVWRPHUFDUH#LFLFLVHFXULWLHVFRP
:HEVLWHZZZLFLFLVHFXULWLHVFRP
&RQWDFWSHUVRQ0V3D\DO.XONDUQL
&RPSOLDQFH2IILFHU0U6XELU6DKD
6(%,5HJLVWUDWLRQQXPEHU
,1%,1%
,QWHJUDWHG(QWHUSULVHV,QGLD/LPLWHG
VW)ORRU
0RGHUQ+RXVH
'U%%*DQGKL0DUJ)RUW
0XPEDL
7HOHSKRQH
)DFVLPLOH
(PDLO.ULVKQDQ#LQWHJUDWHGLQGLDLQ
:HEVLWHZZZLQWHJUDWHGLQGLDLQ
,QYHVWRUJULHYDQFHHPDLOEKDNWL#LQWHJUDWHGLQGLDLQ
&RQWDFWSHUVRQ0U.ULVKQDQ9
6(%,UHJLVWUDWLRQQXPEHU,1%
,QYHVWRUJULHYDQFHHPDLOLJGLVWULEXWLRQ#MPIOFRP
&RQWDFWSHUVRQ0U5RKLW6LQJK
6(%,5HJLVWUDWLRQQXPEHU
,1%,1%
.RWDN6HFXULWLHV/LPLWHG
5DMD%DKDGXU&RPSRXQG
2SS%DQNRI0DKDUDVKWUD
0XPEDL6DPDFKDU0DUJ
0XPEDL
7HOHSKRQH
(PDLOVDQMHHEGDV#NRWDNFRP
:HEVLWHZZZNRWDNFRP
,QYHVWRUJULHYDQFHHPDLOLSRUHGUHVVDO#NRWDNFRP
&RQWDFWSHUVRQ0U6DQMHHE.XPDU'DV
6(%,UHJLVWUDWLRQQXPEHU,1%
,1%
60&*OREDO6HFXULWLHV/LPLWHG
1HWDML6XEKDVK0DUJ
2SS*ROFKD&LQHPD'DU\DJXQM
1HZ'HOKL
7HOHSKRQH
)DFVLPLOH
(PDLOPNJ#VPFLQGLDRQOLQHFRP
QHHUDMNKDQQD#VPFLQGLDRQOLQHFRP
:HEVLWHZZZVPFWUDGHRQOLQHFRP
,QYHVWRUJULHYDQFHHPDLO
GLVWULEXWLRQTXHU\#VPFLQGLDRQOLQHFRP
&RQWDFWSHUVRQ0U0DKHVK*XSWD
6(%,UHJLVWUDWLRQQXPEHU,1%
7LSVRQV6WRFN%URNHUV3ULYDWH/LPLWHG
6KHUDWRQ+RXVHWK)ORRU3RO\WHFKQLF5RDG
$PEDZDGL$KPHGDEDG
7HOHSKRQH
)DFVLPLOH
(PDLOKLUHQFKDQGDUDQD#WUXHYDOXHLQGLDFRP
DYLQDVKNRWKDUL#WLSVRQVFRP
:HEVLWHZZZWUXHYDOXHLQGLDFRP
,QYHVWRUJULHYDQFHHPDLO
KLUHQFKDQGDUDQD#WUXHYDOXHLQGLDFRP
&RQWDFWSHUVRQ0U+LUHQ&KDQGDUDQD0U
$YLQDVK.RWKDUL
6(%,UHJLVWUDWLRQQXPEHU,1%
-XVW7UDGH6HFXULWLHV/LPLWHG
%DMDM+RXVH
1HKUX3ODFH
1HZ'HOKL
7HOHSKRQH
)DFVLPLOH
(PDLOKDULVKV#EDMDMFDSLWDOFRP
:HEVLWHZZZMXVWWUDGHLQ
,QYHVWRUJULHYDQFHHPDLO
FXVWRPHUVHUYLFH#MXVWUDGHLQ
55(TXLW\%URNHUV3ULYDWH/LPLWHG
005RDG
5DQL-KDQVL0DUJ
-KDQGHZDODQ
1HZ'HOKL
7HOHSKRQH
)DFVLPLOH
(PDLOPDQLVKDJUDZDO#UUIFOFRP
:HEVLWHZZZUUIFOFRP
&RQWDFWSHUVRQ0U0DQLVK$JUDZDO
6(%,UHJLVWUDWLRQQXPEHU
,1%,1%
7$7$6HFXULWLHV/LPLWHG
UG)ORRU
/RGKD±,7KLQN7HFKQR&DPSXV
3RNKUDQ5RDG
7KDQH:HVW
7KDQH
7HOHSKRQH
)DFVLPLOH
(PDLOQDFKLDSSDQU#WDWDFDSLWDOFRP
:HEVLWHZZZWDWDVHFXULWLHVFRP
,QYHVWRUJULHYDQFHHPDLO
LQYHVWFDUH#WDWDFDSLWDOFRP
&RQWDFWSHUVRQ0U51DFKLDSSDQ
6(%,UHJLVWUDWLRQQXPEHU
,1%,1),1%)(
63$6HFXULWLHV/LPLWHG
µ&¶%ORFN
&RPPXQLW\&HQWUH
-DQDNSXUL
1HZ'HOKL
7HOHSKRQH
)DFVLPLOH
(PDLOVXQLO#VSDFDSLWDOFRP
:HEVLWHZZZVSDVHFXULWLHVFRP
,QYHVWRUJULHYDQFHHPDLOVXQLO#VSDFDSLWDOFRP
&RQWDFWSHUVRQ0U6XQLO0DKHVKZDUL
6(%,UHJLVWUDWLRQQXPEHU
,1%,1%
&RQWDFWSHUVRQ0U+DULVK6DEKDUZDO
6(%,UHJLVWUDWLRQQXPEHU,1%DQG
,1%
'HEHQWXUH7UXVWHH
*'$7UXVWHHVKLS/LPLWHG
*'$+RXVH)LUVW)ORRU3ORW1R61R
%KXVDUL&RORQ\5LJKW.RWKUXG
3XQH,QGLD
7HOHSKRQH
)DFVLPLOH
(PDLOGW#JGDWUXVWHHFRP
,QYHVWRU*ULHYDQFH(PDLOGW#JGDWUXVWHHFRP
:HEVLWHZZZJGDWUXVWHHFRP
&RQWDFW3HUVRQ0V1HHODP0XQGDGD
6(%,5HJLVWUDWLRQ1R,1'
7KH'HEHQWXUH7UXVWHHKDVFRQVHQWHGWRDFWDVDGHEHQWXUHWUXVWHHLQUHODWLRQWRWKH,VVXHXQGHUUHJXODWLRQ
RIWKH6(%,'HEW5HJXODWLRQ6HH$QQH[XUH&RQSDJHIRUWKHFRQVHQWOHWWHURIWKH'HEHQWXUH7UXVWHH
5HJLVWUDUWRWKH,VVXH
6KULUDP,QVLJKW6KDUH%URNHUV/LPLWHG
&.±6HFWRU,,6DOW/DNH&LW\
.RONDWD,QGLD
7HOHSKRQH
)DFVLPLOH
(PDLO,'VFXIBQRY#VKULUDPLQVLJKWFRP
:HEVLWHZZZVKULUDPLQVLJKWFRP
,QYHVWRU*ULHYDQFH,'VFXIBPDU#VKULUDPLQVLJKWFRP
&RQWDFW3HUVRQ0V6QHKD-DLVZDO&RPSOLDQFH2IILFHU0U.DO\DQ6&KDNUDERUW\
6(%,5HJLVWUDWLRQ1XPEHU,15
6WDWXWRU\$XGLWRUV
3LMXVK*XSWD&R&KDUWHUHG$FFRXQWDQWV
3&,75RDG6FKHPH,90
.RONDWD:HVW%HQJDO,QGLD
7HOHSKRQH
(PDLO,'SLMXVKJXSWDFD#JPDLOFRP
)LUPUHJLVWUDWLRQQR(
$XGLWRUVVLQFH
/HJDO&RXQVHOWRWKH&RPSDQ\DVWR,QGLDQODZ
/XWKUD/XWKUD/DZ2IILFHV
WK)ORRU7RZHU
,QGLDEXOOV)LQDQFH&HQWUH
(OSKLQVWRQH0LOOV&RPSRXQG6HQDSDWL%DSDW0DUJ
/RZHU3DUHO0XPEDL,QGLD
7HOHSKRQH
)DFVLPLOH
%DQNHUVWRWKH&RPSDQ\
$OODKDEDG%DQN
$QGKUD%DQN
,QGXVWULDO)LQDQFH%UDQFK
0RZEUD\V5RDG%UDQFK
$QQD7KHDWUH%XLOGLQJ
$OZDUSHW&KHQQDL
0RXQW5RDG&KHQQDL
7HOHSKRQH
7HOHSKRQH
)DFVLPLOH
$[LV%DQN/LPLWHG
.DUXPXWKX1LOD\DP1R
*URXQG)ORRU
$QQD6DODL&KHQQDL
7HOHSKRQH
)DFVLPLOH
%DQN2I,QGLD
&KHQQDL&RUSRUDWH%DQNLQJ%UDQFK,9)ORRU
7DUDSRUH7RZHUV1R
$QQD6DODL&KHQQDL
7HOHSKRQH
)DFVLPLOH
)DFVLPLOH &DQDUD%DQN
3ULPH&RUSRUDWH%UDQFK*URXQG)ORRU
6SHQFHU7RZHU,
1R$QQD6DODL&KHQQDL
7HOHSKRQH
)DFVLPLOH
&HQWUDO%DQN2I,QGLD
&RUSRUDWH)LQDQFH%UDQFK
$GGLVRQ%XLOGLQJ
$QQD6DODL&KHQQDL
7HOHSKRQH
)DFVLPLOH
&RUSRUDWLRQ%DQN
1R:KLWHV5RDG
&KHQQDL
7HOHSKRQH
)DFVLPLOH
&LW\8QLRQ%DQN/LPLWHG
.HHUWKLV
,VW)ORRU
1R0DQGDYHOL6WUHHW
0DQGDYHOL&KHQQDL
7HOHSKRQH
)DFVLPLOH
'%6%DQN/LPLWHG
1R$QQD6DODL
&KHQQDL
7HOHSKRQH
)DFVLPLOH
)HGHUDO%DQN
$QQD6DODL
&KHQQDL
7HOHSKRQH
)DFVLPLOH
,&,&,%DQN/LPLWHG
,&,&,%DQNUG)ORRU
1R&HQRWDSK5G7H\QDPSHW
&KHQQDL
7HOHSKRQH
)DFVLPLOH
,QGLDQ2YHUVHDV%DQN
&RPPHUFLDO,QVWLWXWLRQDO&UHGLW%UDQFK
$XUDV&RUSRUDWH&HQWUH1R$
''U5DGKDNULVKQDQ6DODL0\ODSRUH
&KHQQDL
7HOHSKRQH
)DFVLPLOH
%DQN2I%DURGD
0\ODSRUH%UDQFK
/X]&KXUFK5RDG
0\ODSRUH&KHQQDL
7HOHSKRQH
)DFVLPLOH
%DQN2I0DKDUDVKWUD
1R(DVW0DGD6WUHHW
1HDU7KHUDGL
0\ODSRUH&KHQQDL
7HO
)D[
'HQD%DQN
1R7KDQLNDFKDODP6WUHHW
71DJDU&KHQQDL
7HOHSKRQH
)DFVLPLOH
+')&%DQN/LPLWHG
1R'U5DGKDNULVKQDQ6DODL
WK)ORRU0\ODSRUH&KHQQDL
7HOHSKRQH
)DFVLPLOH
,'%,%DQN/LPLWHG
36*%UDQFK
*UHDPV5RDG
&KHQQDL
7HO
)D[
,QGXV,QG%DQN/LPLWHG
)ORRU1HZ1R2OG1R
*1&KHWW\5RDG
71DJDU&KHQQDL
7HOHSKRQH
)DFVLPLOH
,1*9\V\D%DQN/LPLWHG
5HJLRQDO2IILFH1R
$QQD6DODL,,)ORRU&KHQQDL
7HOHSKRQH
)DFVLPLOH
-DPPX.DVKPLU%DQN/LPLWHG
9ROWDV,QWHUQDWLRQDO&HQWUH
$UPHQLDQ6WUHHW3DUU\V&KHQQDL
7HOHSKRQH
)DFVLPLOH
.DUXU9\V\D%DQN
.RWDN0DKLQGUD%DQN/LPLWHG
:KLWHV5RDG
&RPPHUFLDO%DQNLQJ$JUL%XVLQHVV*URXS
&KHQQDL
&HHEURV%XLOGLQJVWIORRU
7HOHSKRQH
0RQWLHWK5RDG(JPRUH
)DFVLPLOH
&KHQQDL±
7HOHSKRQH
2ULHQWDO%DQN2I&RPPHUFH
3XQMDE1DWLRQDO%DQN
'U5DGKDNULVKQDQD6DODL
1R5DMD6WUHHW
0\ODSRUH&KHQQDL
71DJDU&KHQQDL
7HOHSKRQH
7HOHSKRQH
)DFVLPLOH
)DFVLPLOH
6PDOO ,QGXVWULHV 'HYHORSPHQW %DQN 2I ,QGLD 6WDWH%DQN2I,QGLD
,QGXVWULDO)LQDQFH%UDQFK
6,'%,
2YHUVHDV7RZHUV1R/$QQD6DODL
7KH$UFDGHQG)ORRU:RUOG7UDGH&HQWUH
2SS796&KHQQDL
&XIIH3DUDGH&RODED0XPEDL
7HOHSKRQH
7HOHSKRQH
)DFVLPLOH
)DFVLPLOH
6WDWH%DQN2I3DWLDOD
6WDWH%DQN2I0DXULWLXV
&RPPHUFLDO%UDQFK
$&DWKHGUDO5RDG
$WODQWDVW)ORRU
3ULQFH$UFDGH
1DULPDQ3RLQW0XPEDL
WK)ORRU&KHQQDL
7HOHSKRQH
7HOHSKRQH
)DFVLPLOH
)DFVLPLOH
6WDWH%DQN2I0\VRUH
6WDWH%DQN2I7UDYDQFRUH
&RUSRUDWH$FFRXQWV%UDQFK
&RPPHUFLDO%UDQFK
1R&0LWWDO&RXUWµ&¶:LQJ
³-HHYD$DQDG´
1DULPDQ3RLQW0XPEDL
1R$QQD6$ODL7H\QDPSHW
7HOHSKRQH
&KHQQDL
)DFVLPLOH
7HOHSKRQH
)DFVLPLOH
6\QGLFDWH%DQN
7DPLOQDG0HUFDQWLOH%DQN/LPLWHG
&RUSRUDWH)LQDQFH%UDQFK
1R$QQD6DODL*URXQG)ORRU
)LUVW)ORRU
1HDU'LVWULFW&HQWUDO/LEUDU\
(OGDPV5RDG7H\DPSHW
0RXQW5RDG&KHQQDL
&KHQQDL
7HOHSKRQH
7HOHSKRQH
)DFVLPLOH
)DFVLPLOH
7KH6RXWK,QGLDQ%DQN/LPLWHG
8QLRQ%DQN2I,QGLD
,QGXVWULDO)LQDQFH%UDQFK
,QGXVWULDO)LQDQFH%UDQFK,)ORRU
1R5DKHMD7RZHUV
%URDGZD\
$QQD6DODL&KHQQDL
&KHQQDL
7HOHSKRQH
7HOHSKRQH
)DFVLPLOH
)DFVLPLOH
8QLWHG%DQN2I,QGLD
8QLWHG%DQNRI%XLOGLQJ1R
6LU305RDG)RUW0XPEDL
8&2%DQN
3/$5DWQD7RZHUV
$QQDVDODL
7HOHSKRQH
)DFVLPLOH
9LMD\D%DQN
0RXQW5RDG%UDQFK0RXQW5RDG
2SS6SHQFHU3OD]D&KHQQDL
7HOHSKRQH
)DFVLPLOH
<HV%DQN/LPLWHG
1R1XQJDPEDNNDP+LJK5RDG
1XQJDPEDNNDP
&KHQQDL
7HOHSKRQH
)DFVLPLOH
(VFURZ&ROOHFWLRQ%DQNV%DQNHUVWRWKH,VVXH
$[LV%DQN/LPLWHG
1R
5.6DODL
0\ODSRUH
&KHQQDL±
7HOHSKRQH
)DFVLPLOH
(PDLO,'&KHQQDLEUDQFKKHDG#D[LVEDQNFRP
:HEVLWHZZZD[LVEDQNFRP
&RQWDFW3HUVRQ6'1DQGDNXPDU
6(%,5HJLVWUDWLRQ1XPEHU,1%,
<HV%DQN/LPLWHG
UG)ORRU,QGLDEXOOV)LQDQFH&HQWUH
6HQDSDWL%DSDW0DUJ(SKLQVWRQH:HVW
0XPEDL±
7HOHSKRQH
)DFVLPLOH
(PDLO,'GOEWLVHUYLFHV#\HVEDQNLQ
:HEVLWHZZZ\HVEDQNLQ
&RQWDFW3HUVRQ0DKHVK6KLUDOL
6(%,5HJLVWUDWLRQ1XPEHU,1%,
&KHQQDL
7HOHSKRQH
:RRUL%DQN
7+)ORRU($&KDPEHUV
1R/:KLWHV5RDG5R\DSHWWDK
&KHQQDL
7HOHSKRQH
)DFVLPLOH
,QGLDQ%DQN
1R5DMDML6DODL
+DUERXU%UDQFK
&KHQQDL
7HOHSKRQH
)DFVLPLOH
,QGXV,QG%DQN/LPLWHG
6ROLWDLUH3DUN%XLOGLQJQR*URXQG)ORRU
*XUX+DUJRYLQGML0DUJ
$QGKHUL(DVW
0XPEDL
7HOHSKRQH
)DFVLPLOH
(PDLO,'VDQMD\YDVDUNDU#LQGXVLQGFRP
:HEVLWHZZZLQGXVLQGFRP
&RQWDFW3HUVRQ6DQMD\9DVDUNDU
6(%,5HJLVWUDWLRQ1XPEHU,1%,
,1*9\V\D%DQN/LPLWHG
&06+XE9LWKDO0DO\D5RDG(GHQ3DUN
%DQJDORUH±
7HOHSKRQH
)DFVLPLOH
(PDLO,'\RJDQDQGM#LQJY\V\DEDQNFRP
DNVKD\KHJGH#LQJY\V\DEDQNFRP
:HEVLWHZZZLQJY\V\DEDQNFRP
&RQWDFW3HUVRQ<RJDQDQG-$NVKD\+HJGH
6(%,5HJLVWUDWLRQ1XPEHU,1%,
7KH6(%,UHJLVWUDWLRQRI<HV%DQN/LPLWHG ZDVYDOLGXSWR-DQXDU\7KHDSSOLFDWLRQIRUUHQHZDORIWKHFHUWLILFDWH
RI UHJLVWUDWLRQ LQ WKH SUHVFULEHG PDQQHU KDV EHHQ PDGH E\ <HV %DQN /LPLWHG WR 6(%, ZLWKLQ WKH WLPH SHULRG SUHVFULEHG
XQGHUWKH6(%,%DQNHUVWRDQ,VVXH5HJXODWLRQVDVDPHQGHG7KHDSSURYDOIURP6(%,LVFXUUHQWO\DZDLWHG
5HIXQG%DQN
,QGXV,QG%DQN/LPLWHG
6ROLWDLUH3DUN%XLOGLQJQR*URXQG)ORRU
*XUX+DUJRYLQGML0DUJ
$QGKHUL(DVW
0XPEDL
7HOHSKRQH
)DFVLPLOH
(PDLO,'VDQMD\YDVDUNDU#LQGXVLQGFRP
:HEVLWHZZZLQGXVLQGFRP
&RQWDFW3HUVRQ6DQMD\9DVDUNDU
6(%,5HJLVWUDWLRQ1XPEHU,1%,
6HOI&HUWLILHG6\QGLFDWH%DQNV
7KH EDQNV ZKLFK DUH UHJLVWHUHG ZLWK 6(%, XQGHU WKH 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD %DQNHUV WR DQ
,VVXH5HJXODWLRQVDQGRIIHUVHUYLFHVLQUHODWLRQWR$6%$LQFOXGLQJEORFNLQJRIDQ$6%$$FFRXQWDOLVW
RI ZKLFK LV DYDLODEOH RQ KWWSZZZVHELJRYLQVHELZHEKRPHOLVW5HFRJQLVHG,QWHUPHGLDULHV RU DW
VXFKRWKHUZHEVLWHDVPD\EHSUHVFULEHGE\6(%,IURPWLPHWRWLPH
&UHGLW5DWLQJ$JHQF\
&UHGLW$QDO\VLV5HVHDUFK/LPLWHG
8QLW1R2&6SHQFHU3OD]D
WK)ORRU1R$QQD6DODL
&KHQQDL±
7HOHSKRQH
)DFVLPLOH
(PDLOSUDGHHSNXPDU#FDUHUDWLQJVFRP
:HEVLWHZZZFDUHUDWLQJVFRP
&RQWDFW3HUVRQ0U93UDGHHS.XPDU
6(%,5HJLVWUDWLRQ1R,1&5$
&UHGLW5DWLQJDQG5DWLRQDOH
&$5(KDVDVVLJQHGDUDWLQJRIµ&$5($$¶WRWKH1&'VYLGHOHWWHUGDWHG0DUFK,QVWUXPHQWVZLWKWKLV
UDWLQJ DUH FRQVLGHUHG WR KDYH KLJK GHJUHH RI VDIHW\ UHJDUGLQJ WLPHO\ VHUYLFLQJ RI ILQDQFLDO REOLJDWLRQV 6XFK
LQVWUXPHQWVFDUU\YHU\ORZFUHGLWULVN)RUGHWDLOVLQUHODWLRQWRWKHUDWLRQDOHIRUWKHFUHGLWUDWLQJSOHDVHUHIHUWR
WKH$QQH[XUH%WRWKLV3URVSHFWXVRQSDJH
([SHUW2SLQLRQ
([FHSWIRUWKHOHWWHUVGDWHG0DUFKLVVXHGE\&$5(LQUHVSHFWRIWKHFUHGLWUDWLQJIRUWKH1&'VDQGWKH
UHSRUWRQ5HIRUPDWWHG$XGLWHG)LQDQFLDO6WDWHPHQWVGDWHG 2FWREHUDQGWKHVWDWHPHQWRIWD[EHQHILWV
GDWHG0DUFKLVVXHGE\RXU6WDWXWRU\$XGLWRUVRXU&RPSDQ\KDVQRWREWDLQHGDQ\H[SHUWRSLQLRQVLQ
UHVSHFWRIWKH,VVXH
0LQLPXP6XEVFULSWLRQ
8QGHUWKH6(%,'HEW5HJXODWLRQVRXU&RPSDQ\PD\VWLSXODWHDPLQLPXPVXEVFULSWLRQDPRXQWZKLFKLWVHHNV
WR UDLVH ,I RXU &RPSDQ\ GRHV QRW UHFHLYH WKH PLQLPXP VXEVFULSWLRQ RI RI WKH %DVH ,VVXH LH ` ODNKVRQWKH GDWH RIFORVXUH RIWKH ,VVXHWKH HQWLUH $SSOLFDWLRQ $PRXQWVVKDOOEH UHIXQGHGWRWKH $SSOLFDQWV
ZLWKLQWKHWLPHSUHVFULEHGXQGHUDSSOLFDEOHVWDWXWRU\UHJXODWRU\UHTXLUHPHQWV,IWKHUHLVGHOD\LQWKHUHIXQGRI
$SSOLFDWLRQ $PRXQWV EH\RQG WKH SHUPLVVLEOH WLPH SHULRG DV PD\ EH SUHVFULEHG E\ DSSOLFDEOH VWDWXWRU\
UHJXODWRU\UHTXLUHPHQWVIRURXU&RPSDQ\WRUHIXQGWKH$SSOLFDWLRQ$PRXQWVRXU&RPSDQ\ZLOOSD\LQWHUHVWIRU
WKHGHOD\HGSHULRGDWUDWHVSUHVFULEHGXQGHUVXFKDSSOLFDEOHVWDWXWRU\DQGRUUHJXODWRU\UHTXLUHPHQWV
,VVXH3URJUDPPH
,668(352*5$00(
,668(23(1621
$SULO
,668(&/26(621
0D\
7KH,VVXHVKDOOUHPDLQRSHQIRUVXEVFULSWLRQIURPDPWLOO30,QGLDQ6WDQGDUG7LPHIRUWKHSHULRGPHQWLRQHGDERYHZLWKDQRSWLRQ
IRUHDUO\FORVXUHRUH[WHQVLRQE\VXFKSHULRGDVPD\EHGHFLGHGE\WKH%RDUGRI'LUHFWRUVRUDGXO\FRQVWLWXWHGFRPPLWWHHWKHUHRI,QWKHHYHQWRI
VXFKHDUO\FORVXUHRUH[WHQVLRQRIWKHVXEVFULSWLRQOLVWRIWKH,VVXHRXU&RPSDQ\VKDOOHQVXUHWKDWSXEOLFQRWLFHRIVXFKHDUO\FORVXUHRUH[WHQVLRQLV
SXEOLVKHGRQRUEHIRUHWKHGD\RIVXFKHDUO\GDWHRIFORVXUHRU,VVXH&ORVLQJ'DWHWKURXJKDGYHUWLVHPHQWVLQDWOHDVWRQHOHDGLQJQDWLRQDOGDLO\
QHZVSDSHU
&$3,7$/6758&785(
'HWDLOVRIHTXLW\VKDUHFDSLWDO
7KH IROORZLQJ WDEOH OD\V GRZQ GHWDLOV RI RXU DXWKRULVHG LVVXHG VXEVFULEHG DQG SDLG XS VKDUH FDSLWDO DV RQ
'HFHPEHU
3DUWLFXODUV
$JJUHJDWHYDOXH
`LQODNKV
$XWKRULVHGVKDUHFDSLWDO
(TXLW\6KDUHVRI`HDFK
HTXLW\VKDUHVRI`HDFK
&XPXODWLYH5HGHHPDEOH3UHIHUHQFH6KDUHVRI`HDFK
,VVXHGVXEVFULEHGDQGSDLGXS(TXLW\6KDUHFDSLWDO
(TXLW\6KDUHV
6HFXULWLHVSUHPLXPDFFRXQW
'HWDLOVRIFKDQJHLQDXWKRUL]HGVKDUHFDSLWDO
6HWIRUWKEHORZDUHWKHGHWDLOVRIFKDQJHVLQWKHDXWKRUL]HGVKDUH FDSLWDORIRXU&RPSDQ\GXULQJWKH ODVW ILYH
\HDUV
6
1R
3DUWLFXODUVRILQFUHDVH
7KH DXWKRULVHG VKDUH FDSLWDO RI RXU &RPSDQ\ ZDV LQFUHDVHG IURP `
GLYLGHG LQWR (TXLW\ 6KDUHV DQG &XPXODWLYH 5HGHHPDEOH 3UHIHUHQFH 6KDUHV RI ` HDFK WR `
GLYLGHG LQWR (TXLW\ 6KDUHV DQG &XPXODWLYH5HGHHPDEOH3UHIHUHQFHVKDUHVRI`HDFK
7KH DXWKRULVHG VKDUH FDSLWDO RI RXU &RPSDQ\ ZDV LQFUHDVHG IURP `
GLYLGHG LQWR (TXLW\ 6KDUHV DQG &XPXODWLYH 5HGHHPDEOH 3UHIHUHQFH VKDUHV RI ` HDFK WR `
GLYLGHG LQWR (TXLW\ 6KDUHV DQG &XPXODWLYH5HGHHPDEOH3UHIHUHQFHVKDUHVRI`HDFK
7KH DXWKRULVHG VKDUH FDSLWDO RI RXU &RPSDQ\ ZDV LQFUHDVHG IURP `
GLYLGHG LQWR (TXLW\ 6KDUHV DQG &XPXODWLYH 5HGHHPDEOH 3UHIHUHQFH VKDUHV RI ` HDFK WR `
GLYLGHGLQWR(TXLW\VKDUHVRI` HDFKDQG
HTXLW\ VKDUHV RI ` HDFK DQG &XPXODWLYH
5HGHHPDEOH3UHIHUHQFHVKDUHVRI` HDFK
'DWHRI
VKDUHKROGHUV¶
PHHWLQJ
0D\
$*0(*0
0DUFK
(*0
$XJXVW
(*0
$XWKRULVHGVKDUHFDSLWDOZDVLQFUHDVHGSXUVXDQWWRWKH6FKHPHRI$UUDQJHPHQW)RUGHWDLOVRIWKH6FKHPHRI$UUDQJHPHQWSOHDVHVHH
VHFWLRQWLWOHG³+LVWRU\DQG&HUWDLQ&RUSRUDWH0DWWHUV±6FKHPHRI$UUDQJHPHQW´RQSDJH
1RWHVWRFDSLWDOVWUXFWXUH
(TXLW\6KDUHFDSLWDOKLVWRU\RIRXU&RPSDQ\
6HWIRUWKEHORZLV(TXLW\6KDUHFDSLWDOKLVWRU\RIRXU&RPSDQ\IRUWKHODVWILYH\HDUVDVDW'HFHPEHU
'DWHRI 1XPEHU )DFH ,VVXH 1DWXUHRI
1DWXUHRI &XPXODWLYH &XPXODWLYH
DOORWPHQW RI(TXLW\ YDOXH 3ULFH &RQVLGHUDWLRQ DOORWPHQW QXPEHURI HTXLW\VKDUH
`` `
`
6KDUHV
HTXLW\
FDSLWDO
``
VKDUHV
-DQXDU\
&DVK
([FHUFLVH RI (623
0D\ &DVK
([FHUFLVH RI (623
1RYHPEHU &DVK
&RQYHUVLRQ RIZDUUDQWV
1RYHPEHU &DVK
&RQYHUVLRQ RIZDUUDQWV
&XPXODWLYH 5HPDUNV
VKDUH
SUHPLXP
``
'DWHRI 1XPEHU )DFH ,VVXH 1DWXUHRI
1DWXUHRI &XPXODWLYH &XPXODWLYH
DOORWPHQW RI(TXLW\ YDOXH 3ULFH &RQVLGHUDWLRQ DOORWPHQW QXPEHURI HTXLW\VKDUH
`` `
`
6KDUHV
HTXLW\
FDSLWDO
``
VKDUHV
1RYHPEHU &DVK
&RQYHUVLRQ
RIZDUUDQWV
-DQXDU\ &DVK
([FHUFLVH RI (623
0DUFK &DVK
([FHUFLVH RI (623
0D\ &DVK
([FHUFLVH RI (623
-XQH &DVK
([FHUFLVH RI (623
$XJXVW
&DVK
([FHUFLVH RI (623
6HSWHPEHU
&DVK
([FHUFLVH RI (623
2FWREHU
&DVK
([FHUFLVH RI (623
1RYHPEHU
&DVK
([FHUFLVH RI (623
'HFHPEHU
&DVK
([FHUFLVH RI (623
'HFHPEHU
&DVK
([FHUFLVH RI (623
-DQXDU\
&DVK
([FHUFLVH RI (623
0DUFK &DVK
([FHUFLVH RI (623
0DUFK &DVK
([FHUFLVH RI (623
$SULO &DVK
([FHUFLVH RI (623
-XQH &DVK
([FHUFLVH RI (623
-XQH &DVK
([FHUFLVH RI (623
$XJXVW &DVK
([FHUFLVH RI (623
$XJXVW
&DVK
([FHUFLVH RI (623
2FWREHU
&DVK
([FHUFLVH RI (623
1RYHPEHU
&DVK
([FHUFLVH RI (623
'HFHPEHU
&DVK
([FHUFLVH RI (623
'HFHPEHU
&DVK
([FHUFLVH RI (623
)HEUXDU\
&DVK
([FHUFLVH RI (623
0DUFK &DVK
([FHUFLVH RI (623
0DUFK &DVK
3UHIHUHQWLDO LVVXH
0DUFK &DVK
([FHUFLVH RI (623
0D\ &DVK
([FHUFLVH RI (623
0D\ &DVK
([FHUFLVH RI (623
&XPXODWLYH 5HPDUNV
VKDUH
SUHPLXP
``
'DWHRI 1XPEHU )DFH ,VVXH 1DWXUHRI
1DWXUHRI &XPXODWLYH &XPXODWLYH
DOORWPHQW RI(TXLW\ YDOXH 3ULFH &RQVLGHUDWLRQ DOORWPHQW QXPEHURI HTXLW\VKDUH
`` `
`
6KDUHV
HTXLW\
FDSLWDO
``
VKDUHV
-XQH &DVK
([FHUFLVH RI (623
-XO\ &DVK
([FHUFLVH RI (623
6HSWHPEHU
&DVK
([FHUFLVH RI (623
2FWREHU
&DVK
([FHUFLVH RI (623
1RYHPEHU
&DVK
([FHUFLVH RI (623
'HFHPEHU
&DVK
([FHUFLVH RI (623
-DQXDU\ &DVK
([FHUFLVH RI (623
)HEUXDU\
&DVK
([FHUFLVH RI (623
0DUFK &DVK
([FHUFLVH RI (623
0DUFK &DVK
&RQYHUVLRQ RIZDUUDQWV
0DUFK &DVK
([FHUFLVH RI (623
0D\ &DVK
([FHUFLVH RI (623
-XO\
&DVK
([FHUFLVH RI (623
-XO\ &DVK
&RQYHUVLRQ RIZDUUDQWV
$XJXVW
1$ 2WKHU
WKDQ 3XUVXDQW WR FDVK
WKH 6FKHPH
RI
$UUDQJHPHQW
6HSWHPEHU
&DVK
([FHUFLVH RI (623
1RYHPEHU
&DVK
([HUFLVH RI (623
&XPXODWLYH 5HPDUNV
VKDUH
SUHPLXP
``
(TXLW\ 6KDUHV KHOG E\ 65+3/ ZHUH FDQFHOOHG SXUVXDQW WR WKH 6FKHPH RI $UUDQJHPHQW ZLWK HIIHFW IURP $XJXVW )RU
GHWDLOVRIWKH6FKHPHRI$UUDQJHPHQWSOHDVHVHHVHFWLRQWLWOHG³+LVWRU\DQG&HUWDLQ&RUSRUDWH0DWWHUV ±6FKHPHRI$UUDQJHPHQW´RQSDJH
'HWDLOVRIDPDOJDPDWLRQLQWKHODVWRQH\HDU
3XUVXDQW WR WKH RUGHU RI WKH +LJK &RXUW RI 0DGUDV GDWHG -XQH 6(+3/ ZDV PHUJHG LQWR
65+3/³)LUVW0HUJHU´DQGWKHHQWLW\IRUPHGSRVWWKH)LUVW0HUJHU³&RQVROLGDWHG65+3/´ZDV
PHUJHGLQWRRXU&RPSDQ\³6HFRQG0HUJHU´DQGVXFKPHUJHUVWKH³6FKHPHRI$UUDQJHPHQW´WR
LQWHU DOLD UHGXFH VKDUHKROGLQJ WLHUV RSWLPL]H DGPLQLVWUDWLYH FRVWV DQG HQDEOH WKH VKDUHKROGHUV RI
65+3/WRKROG(TXLW\6KDUHVGLUHFWO\LQRXU&RPSDQ\ )RUGHWDLOVSOHDVHVHHVHFWLRQWLWOHG³+LVWRU\
DQG&HUWDLQ&RUSRUDWH0DWWHUV±6FKHPHRI$UUDQJHPHQW´RQSDJH
7RS(TXLW\6KDUHVKROGHUVDVRQ'HFHPEHU
7KHIROORZLQJDUHWKHGHWDLOVRIWKHWRSWHQVKDUHKROGHUVRIRXU&RPSDQ\DVRQ'HFHPEHU
6U
QR
1DPHRIVKDUHKROGHU
1RRI(TXLW\
6KDUHVKHOG
6KULUDP&DSLWDO/LPLWHG
73*,QGLD,QYHVWPHQW,,QF
1RUZHVW9HQWXUH3DUWQHUV;),,0DXULWLXV
1RRI(TXLW\
6KDUHVKHOGLQ
GHPDWHULDOLVHG
IRUP
7RWDOVKDUHKROGLQJ
DVDSHUFHQWDJHRI
WKHWRWDOQXPEHURI
(TXLW\6KDUHV
6U
QR
1DPHRIVKDUHKROGHU
1RRI(TXLW\
6KDUHVKHOG
%HVVHPHU9HQWXUH3DUWQHUV7UXVW
,,)/,QF$&9RQWREHO,QGLD6HOHFW)XQG
,'%, 7UXVWHHVKLS 6HUYLFHV /LPLWHG ,QGLD
$GYDQWDJH)XQG9,
%DQN 0XVFDW 6$2* $& %DQNPXVFDW ,QGLD
)XQG
6WHDGYLHZ&DSLWDO0DXULWLXV/LPLWHG
$FDFLD3DUWQHUV/3
0DVVDFKXVHWWV,QVWLWXWH2I7HFKQRORJ\6&0
7RWDO
1RRI(TXLW\
6KDUHVKHOGLQ
GHPDWHULDOLVHG
IRUP
7RWDOVKDUHKROGLQJ
DVDSHUFHQWDJHRI
WKHWRWDOQXPEHURI
(TXLW\6KDUHV
6KDUHKROGLQJSDWWHUQRIRXU&RPSDQ\
7KHIROORZLQJLVWKHVKDUHKROGLQJSDWWHUQRIRXU&RPSDQ\DVRQ'HFHPEHU
&DWHJRU\RIVKDUHKROGHU
1XPEHU 7RWDOQXPEHU 1XPEHURI
7RWDO
6KDUHVSOHGJHRU
7RWDO
RI
RI(TXLW\
VKDUHVKHOGLQ VKDUHKROGLQJ
RWKHUZLVH
VKDUHKROGLQJ
VKDUHKROGHUV
6KDUHV
GHPDWHULDOL]HG DVDRI
HQFXPEHUHG
DV
IRUP
WRWDOQXPEHU 1XPEHU $VD DRIWRWDO
RI(TXLW\
QXPEHURI
RI
6KDUHV
(TXLW\
VKDUHV
$%
6KDUHV
$%&
6KDUHKROGLQJRI3URPRWHUDQG
3URPRWHU*URXS$
,QGLDQ
,QGLYLGXDOV +LQGX 8QGLYLGHG
)DPLO\
&HQWUDO *RYHUQPHQW 6WDWH
*RYHUQPHQWV
%RGLHV&RUSRUDWH
)LQDQFLDO,QVWLWXWLRQV%DQNV
$Q\2WKHU
)RUHLJQ
,QGLYLGXDOV
1RQ5HVLGHQW
,QGLYLGXDOV)RUHLJQ,QGLYLGXDOV
%RGLHV&RUSRUDWH2&%
,QVWLWXWLRQV),,
$Q\2WKHU
7RWDO
6KDUHKROGLQJ
RI
3URPRWHU DQG 3URPRWHU
*URXS$
3XEOLFVKDUHKROGLQJ%
,QVWLWXWLRQV%
0XWXDO)XQGV87,
)LQDQFLDO,QVWLWXWLRQV%DQNV
&HQWUDO *RYHUQPHQW 6WDWH
*RYHUQPHQWV
9HQWXUH&DSLWDO)XQGV
,QVXUDQFH&RPSDQLHV
)RUHLJQ,QVWLWXWLRQDO,QYHVWRUV
)RUHLJQ
9HQWXUH
&DSLWDO
,QYHVWRU
4XDOLILHG )RUHLJQ ,QYHVWRUV
,QGLYLGXDOV
4XDOLILHG )RUHLJQ ,QYHVWRUV
&RUSRUDWLRQV
6XE7RWDO%
1RQLQVWLWXWLRQV%
%RGLHV&RUSRUDWH
&DWHJRU\RIVKDUHKROGHU
1XPEHU 7RWDOQXPEHU 1XPEHURI
7RWDO
6KDUHVSOHGJHRU
7RWDO
RI
RI(TXLW\
VKDUHVKHOGLQ VKDUHKROGLQJ
RWKHUZLVH
VKDUHKROGLQJ
VKDUHKROGHUV
6KDUHV
GHPDWHULDOL]HG DVDRI
HQFXPEHUHG
DV
IRUP
WRWDOQXPEHU 1XPEHU $VD DRIWRWDO
RI(TXLW\
QXPEHURI
RI
6KDUHV
(TXLW\
VKDUHV
$%
6KDUHV
$%&
,QGLYLGXDO VKDUHKROGHUV KROGLQJ
QRPLQDO VKDUH FDSLWDO XSWR ` ODNK
,QGLYLGXDO VKDUHKROGHUV KROGLQJ
QRPLQDO VKDUH FDSLWDO LQ H[FHVV
RI`ODNK
4XDOLILHG )RUHLJQ ,QYHVWRUV
,QGLYLGXDOV
4XDOLILHG )RUHLJQ ,QYHVWRUV
&RUSRUDWLRQV
$Q\RWKHU±FOHDULQJPHPEHUV
7UXVWV
&RUSRUDWH ERG\ ± )RUHLJQ
%RGLHV
1RQ5HVLGHQW,QGLDQV
/LPLWHG/LDELOLW\3DUWQHUVKLSV
6XE7RWDO%
7RWDO 3XEOLF 6KDUHKROGLQJ %
%%
7RWDO$%
6KDUHVKHOGE\FXVWRGLDQVDQGDJDLQVWZKLFK'HSRVLWRU\UHFHLSWVKDYHEHHQLVVXHG&
3URPRWHU DQG 3URPRWHU
*URXS
3XEOLF
*5$1'727$/$%&
7RSWHQKROGHUVRIGHEWLQVWUXPHQWV
)RUGHWDLOVRIWKHWRSWHQKROGHUVRIGHEWLQVWUXPHQWVDVRQ'HFHPEHUSOHDVHVHHVHFWLRQWLWOHG
³)LQDQFLDO,QGHEWHGQHVV±7RSWHQKROGHUVRIGHEWLQVWUXPHQWV´RQSDJH
([FHSW DV VWDWHG LQ WKLV 3URVSHFWXV RXU &RPSDQ\ KDV QRW XQGHUJRQH DQ\ UHRUJDQLVDWLRQ RU
UHFRQVWUXFWLRQLQWKHODVWRQH\HDU
/RQJWHUPGHEWWRHTXLW\UDWLR
7KH ORQJ WHUP GHEW WR HTXLW\ UDWLR RI RXU &RPSDQ\ SULRU WR WKLV ,VVXH LV EDVHG RQ D WRWDO ORQJ WHUP
RXWVWDQGLQJ GHEW RI ` ODNKV DQG VKDUHKROGHUV¶ IXQGV DPRXQWLQJ WR ` ODNKV
ZKLFK ZDV WLPHV DV RQ 'HFHPEHU 7KH ORQJ WHUP GHEW WR HTXLW\ UDWLR SRVW WKH ,VVXH
FRQVLGHULQJ IXOO VXEVFULSWLRQ RI ` ODNKV EDVHG RQ D WRWDO ORQJ WHUP RXWVWDQGLQJ GHEW RI `
ODNKV DQG VKDUHKROGHUV¶ IXQGV RI ` ODNKV ZLOO EH WLPHV WKH GHWDLOV RI
ZKLFKDUHDVXQGHU
3DUWLFXODUV
3ULRUWRWKH,VVXH
DVRQ'HFHPEHU
'HEW
6KRUWWHUPGHEW
/RQJWHUPGHEW
7RWDOGHEW
6KDUHKROGHUV¶IXQG
6KDUHFDSLWDO
5HVHUYHV
/HVV0LVFHOODQHRXVH[SHQGLWXUHWRWKHH[WHQW
QRWZULWWHQRIIRUDGMXVWHG
7RWDOVKDUHKROGHUV¶IXQGV
3RVW,VVXH
3DUWLFXODUV
3ULRUWRWKH,VVXH
DVRQ'HFHPEHU
/RQJWHUPGHEWHTXLW\
7RWDOGHEWHTXLW\
$VVXPLQJIXOOVXEVFULSWLRQRI` ODNKVWKURXJKWKHSUHVHQW,VVXH
,QFOXGHVVKRUWWHUPGHEWDQGFXUUHQWPDWXULWLHVRIORQJWHUPERUURZLQJV
3RVW,VVXH
1RQHRIWKH(TXLW\6KDUHVDUHSOHGJHGRURWKHUZLVHHQFXPEHUHG
)RU GHWDLOV RI WKH RXWVWDQGLQJ ERUURZLQJV RI RXU &RPSDQ\ SOHDVH VHH WKH VHFWLRQ WLWOHG ³)LQDQFLDO
,QGHEWHGQHVV´RQSDJH
(PSOR\HH6WRFN2SWLRQ6FKHPHV
(623
3XUVXDQWWRD VSHFLDOUHVROXWLRQGDWHG2FWREHUSDVVHG E\WKH VKDUHKROGHUVRI WKH &RPSDQ\
RXU &RPSDQ\ KDV IRUPXODWHG DQ HPSOR\HH VWRFN RSWLRQ VFKHPH QDPHO\ ³6&8)/ (PSOR\HH 6WRFN
2SWLRQ 6FKHPH ´ ³(623 ´ 8QGHU WKH (623 WKH H[HUFLVH SULFH IRU RSWLRQV LV `
'HWDLOVRIWKHRSWLRQVJUDQWHGXQGHUWKH(623DVRQ'HFHPEHU
3DUWLFXODUV
2SWLRQVJUDQWHG
2SWLRQVYHVWHGDQGH[HUFLVDEOH
2SWLRQVH[HUFLVHG
(TXLW\6KDUHVLVVXHGRQH[HUFLVHRIRSWLRQV
7RWDOQXPEHURIRSWLRQVRXWVWDQGLQJ
7RWDO
(623
3XUVXDQW WR D VSHFLDO UHVROXWLRQ GDWHG 0D\ SDVVHG E\ WKH VKDUHKROGHUV RI RXU &RPSDQ\ RXU
&RPSDQ\KDVIRUPXODWHGDQHPSOR\HHVWRFNRSWLRQVFKHPHQDPHO\³6&8)/(PSOR\HH6WRFN2SWLRQ
6FKHPH´³(623´$VRQ'HFHPEHURXU&RPSDQ\KDVQRWJUDQWHGDQ\RSWLRQV
XQGHU WKH (623 8QGHU WKH (623 WKH H[HUFLVH SULFH IRU RSWLRQV LV ` )XUWKHU
SXUVXDQWWRDVSHFLDOUHVROXWLRQSDVVHGE\WKHVKDUHKROGHUVRIRXU&RPSDQ\DW DQ $*0KHOGRQ-XO\
DQG WKH SURYLVLRQV RI 6HFWLRQ $ DQG RWKHU DSSOLFDEOH SURYLVLRQV LI DQ\ RI WKH
&RPSDQLHV$FWDQGWKHVXEMHFWWRWKH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD(PSOR\HH6WRFN
2SWLRQ 6FKHPH DQG (PSOR\HH 6WRFN 3XUFKDVH 6FKHPH *XLGHOLQHV DV DPHQGHG WKH %RDUG RI
'LUHFWRUV LV HPSRZHUHG WR JUDQW LVVXH RIIHU DQG DOORW RSWLRQV XQGHU (623 WR WKH SUHVHQW DQG
IXWXUHHPSOR\HHVRIWKHVXEVLGLDU\FRPSDQLHVRIRXU&RPSDQ\
(623
3XUVXDQWWRDVSHFLDOUHVROXWLRQGDWHG0D\SDVVHGE\WKHVKDUHKROGHUVRIRXU&RPSDQ\RXU
&RPSDQ\KDVIRUPXODWHGDQHPSOR\HHVWRFNRSWLRQVFKHPHQDPHO\³6&8)/(PSOR\HH6WRFN2SWLRQ
6FKHPH´³(623´WRJUDQWLVVXHRIIHUDQGDOORWRSWLRQVWRHPSOR\HHVRIRXU&RPSDQ\
DQG RI WKH VXEVLGLDU\ FRPSDQLHV RI RXU &RPSDQ\ $V RQ 'HFHPEHU RXU &RPSDQ\ KDV QRW
JUDQWHGDQ\RSWLRQV XQGHUWKH (6238QGHUWKH(623WKHH[HUFLVHSULFH IRURSWLRQVLV `
:DUUDQWV
7KHUHDUHQRRXWVWDQGLQJZDUUDQWVDVRQGDWHRIWKLV3URVSHFWXV
2%-(&762)7+(,668(
,VVXH3URFHHGV
2XU &RPSDQ\ KDV ILOHG WKLV 3URVSHFWXV IRU D SXEOLF LVVXH RI 1&'V DJJUHJDWLQJ XSWR ` ODNKV ZLWK DQ
RSWLRQWRUHWDLQRYHUVXEVFULSWLRQXSWR`ODNKVIRULVVXDQFHRIDGGLWLRQDO1&'VDJJUHJDWLQJWRDWRWDORI
XSWR ` ODNKV 7KH IXQGV UDLVHG WKURXJK WKLV ,VVXH ZLOO EH XWLOLVHG IRU RXU YDULRXV ILQDQFLQJ OHQGLQJ
LQYHVWPHQWV UHSD\LQJ RXU H[LVWLQJ OLDELOLWLHV RU ORDQV WRZDUGV RXU EXVLQHVV RSHUDWLRQV FDSLWDO H[SHQGLWXUH
ZRUNLQJFDSLWDOUHTXLUHPHQWVDQGJHQHUDOFRUSRUDWHSXUSRVHVDIWHUPHHWLQJWKHH[SHQGLWXUHVRIDQGUHODWHGWR
WKH,VVXHDQGVXEMHFWWRDSSOLFDEOHVWDWXWRU\UHJXODWRU\UHTXLUHPHQWV
7KH PDLQ REMHFWV FODXVH RI WKH 0HPRUDQGXP RI $VVRFLDWLRQ RI RXU &RPSDQ\ SHUPLWV RXU &RPSDQ\ WR
XQGHUWDNHLWVH[LVWLQJDFWLYLWLHVDVZHOODVWKHDFWLYLWLHVIRUZKLFKWKHIXQGVDUHEHLQJUDLVHGWKURXJKWKLV,VVXH
,QWHULPXVHRI3URFHHGV
6XEMHFWWRDSSOLFDEOHODZWKH PDQDJHPHQWRIRXU&RPSDQ\LQDFFRUGDQFH ZLWKWKHSROLFLHV IRUPXODWHGE\LW
IURPWLPHWRWLPHZLOOKDYHIOH[LELOLW\LQGHSOR\LQJWKHSURFHHGVUHFHLYHGIURPWKH,VVXH3HQGLQJXWLOLVDWLRQIRU
WKHSXUSRVHVGHVFULEHGDERYH ZHLQWHQGWRWHPSRUDULO\LQYHVWWKH IXQGVLQLQWHUHVWEHDULQJOLTXLGLQVWUXPHQWV
LQFOXGLQJGHSRVLWVZLWKEDQNVDQGLQYHVWPHQWVLQOLTXLGQRWHTXLW\PXWXDOIXQGVDVPD\EHDSSURYHGE\WKH
%RDUG DQGRU DQ\ GXO\ FRQVWLWXWHG FRPPLWWHH RI 'LUHFWRUV RI RXU &RPSDQ\ DV WKH FDVH PD\ EH 6XFK
LQYHVWPHQWVZRXOGEHLQDFFRUGDQFHZLWKWKHLQYHVWPHQWSROLFLHVDSSURYHGE\RXU%RDUGIURPWLPHWRWLPH
0RQLWRULQJRI8WLOL]DWLRQRI)XQGV
7KHUHLVQRUHTXLUHPHQWIRUDSSRLQWPHQWRID PRQLWRULQJDJHQF\ LQWHUPVRIWKH 6(%,'HEW5HJXODWLRQV7KH
%RDUGRI'LUHFWRUVVKDOOPRQLWRUWKHXWLOLVDWLRQRIWKHSURFHHGVRIWKH,VVXH2XU&RPSDQ\ZLOOGLVFORVHLQRXU
&RPSDQ\¶V ILQDQFLDO VWDWHPHQWV IRU WKH UHOHYDQW ILQDQFLDO \HDU FRPPHQFLQJ IURP WKH ILQDQFLDO \HDU HQGHG
0DUFKWKHXWLOLVDWLRQRIWKHSURFHHGVRIWKH,VVXHXQGHUDVHSDUDWHKHDGDORQJZLWKGHWDLOVLIDQ\LQ
UHODWLRQWRDOOVXFKSURFHHGVRIWKH,VVXHWKDWKDYHQRWEHHQXWLOLVHGWKHUHE\DOVRLQGLFDWLQJLQYHVWPHQWVLIDQ\
RIVXFKXQXWLOLVHGSURFHHGVRIWKH,VVXH)XUWKHULQDFFRUGDQFHZLWKWKH'HEW/LVWLQJ$JUHHPHQWRXU&RPSDQ\
ZLOOIXUQLVKWRWKH%6(RQDKDOI\HDUO\EDVLVDVWDWHPHQWLQGLFDWLQJPDWHULDOGHYLDWLRQVLIDQ\LQWKHXVHRI
,VVXH SURFHHGV DQG VKDOO DOVR SXEOLVK WKH VDPH LQ QHZVSDSHUV VLPXOWDQHRXVO\ ZLWK WKH KDOI\HDUO\ ILQDQFLDO
UHVXOWV:HVKDOOXWLOL]HWKHSURFHHGVRIWKH,VVXHRQO\XSRQH[HFXWLRQRIWKHGRFXPHQWVIRUFUHDWLRQRIVHFXULW\
DVVWDWHGLQWKLV 3URVSHFWXVLQWKH VHFWLRQWLWOHG ³7HUPVRI WKH ,VVXH´RQSDJHDQGXSRQWKH OLVWLQJRI WKH
1&'V
,VVXHH[SHQVHV
$ SRUWLRQ RI WKH ,VVXH SURFHHGV ZLOO EH XVHG WR PHHW ,VVXH H[SHQVHV 7KH IROORZLQJ DUH WKH HVWLPDWHG ,VVXH
H[SHQVHV
3DUWLFXODUV
$PRXQW
`LQODNKV
$VSHUFHQWDJHRI,VVXH
SURFHHGVLQ
$VSHUFHQWDJHRIWRWDO
H[SHQVHVRIWKH,VVXHLQ
)HHVSD\DEOHWR,QWHUPHGLDULHV
/HDG 0DQDJHUV IHH VHOOLQJ
DQG EURNHUDJH FRPPLVVLRQ
6&6%VSURFHVVLQJIHHV
5HJLVWUDUWRWKH,VVXH
'HEHQWXUH7UXVWHH
$GYHUWLVLQJDQGPDUNHWLQJ
3ULQWLQJDQGVWDWLRQHU\FRVW
2WKHU0LVFHOODQHRXV([SHQVHV
7RWDO
6&6%VZRXOGEHHQWLWOHGWRDSURFHVVLQJIHHRI`SHU$SSOLFDWLRQ)RUPIRUSURFHVVLQJWKH$SSOLFDWLRQ)RUPVSURFXUHG
E\WKH0HPEHUVRIWKH6\QGLFDWHRU7UDGLQJ0HPEHUVDQGVXEPLWWHGWR6&6%
67$7(0(172)7$;%(1(),76
8QGHUWKHFXUUHQWWD[ODZVWKHIROORZLQJWD[EHQHILWVLQWHUDOLDZLOOEHDYDLODEOHWRWKH'HEHQWXUH+ROGHUV7KH
WD[EHQHILWVJLYHQEHORZDUHDVSHUWKHSUHYDLOLQJWD[ODZVDQGPD\YDU\IURPWLPHWRWLPHLQDFFRUGDQFHZLWK
DPHQGPHQWVWRWKHODZRUHQDFWPHQWVWKHUHWR7KH'HEHQWXUH+ROGHULVDGYLVHGWRFRQVLGHULQKLVRZQFDVHWKH
WD[LPSOLFDWLRQVLQUHVSHFWRIVXEVFULSWLRQWRWKH'HEHQWXUHVDIWHUFRQVXOWLQJKLVWD[DGYLVRUDVDOWHUQDWHYLHZV
DUHSRVVLEOH:HDUHQRWOLDEOHWRWKH'HEHQWXUH+ROGHULQDQ\PDQQHUIRUSODFLQJUHOLDQFHXSRQWKHFRQWHQWVRI
WKLVVWDWHPHQWRIWD[EHQHILWV
3,-86+*837$&2
&+$57(5('$&&2817$176
3&,752$'6&+(0(,90.2/.$7$±
7KH%RDUGRI'LUHFWRUV
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QJDSSD1DLFNHQ6WUHHW
&KHQQDL±
'HDU6LUV
6WDWHPHQWRI3RVVLEOH7D[%HQHILWV
:HKHUHE\UHSRUWWKDWWKHHQFORVHGVWDWHPHQWVWDWHVWKHSRVVLEOHWD[EHQHILWVDYDLODEOHWRWKH&RPSDQ\DQGWRWKH
1&'KROGHUVRIWKH&RPSDQ\XQGHUWKH,QFRPHWD[$FWDQGWKH:HDOWKWD[$FWDVDPHQGHGE\WKH
)LQDQFH$FWSUHVHQWO\LQIRUFHLQ,QGLD6HYHUDORIWKHVHEHQHILWVDUHGHSHQGHQWRQWKH&RPSDQ\RULWV
1&'KROGHUVIXOILOOLQJWKHFRQGLWLRQVSUHVFULEHGXQGHUWKHUHOHYDQWSURYLVLRQVRIWKHVWDWXWH+HQFHWKHDELOLW\
RIWKH&RPSDQ\RULWV1&'KROGHUVWRGHULYHWKHWD[EHQHILWVLVGHSHQGHQWXSRQIXOILOOPHQWRIVXFKFRQGLWLRQV
ZKLFKEDVHGRQEXVLQHVVLPSHUDWLYHVWKH&RPSDQ\IDFHVLQWKHIXWXUHWKH&RPSDQ\PD\RUPD\QRWFKRRVHWR
IXOILOO
7KHEHQHILWVGLVFXVVHGLQWKHHQFORVHGVWDWHPHQWDUHQRWH[KDXVWLYH7KLVVWDWHPHQWLVRQO\LQWHQGHGWRSURYLGH
JHQHUDOLQIRUPDWLRQWRWKHLQYHVWRUVDQGLVQHLWKHUGHVLJQHGQRULQWHQGHGWREHDVXEVWLWXWHIRUSURIHVVLRQDOWD[
DGYLFH ,Q YLHZ RI WKH LQGLYLGXDO QDWXUH RI WKH WD[ FRQVHTXHQFHV DQG WKH FKDQJLQJ WD[ ODZV HDFK LQYHVWRU LV
DGYLVHGWRFRQVXOWKLVRUKHURZQWD[FRQVXOWDQWZLWKUHVSHFWWRWKHVSHFLILFWD[LPSOLFDWLRQVDULVLQJRXWRIWKHLU
SDUWLFLSDWLRQLQWKHLVVXH
:HGRQRWH[SUHVVDQ\RSLQLRQRUSURYLGHDQ\DVVXUDQFHDVWRZKHWKHU
L
WKH&RPSDQ\RULWV1&'KROGHUVZLOOFRQWLQXHWRREWDLQWKHVHEHQHILWVLQIXWXUHRU
LL
WKHFRQGLWLRQVSUHVFULEHGIRUDYDLOLQJWKHEHQHILWVKDYHEHHQZRXOGEHPHWZLWK
7KH FRQWHQWV RI WKH HQFORVHG VWDWHPHQW DUH EDVHG RQ LQIRUPDWLRQ H[SODQDWLRQV DQG UHSUHVHQWDWLRQV REWDLQHG
IURP WKH &RPSDQ\ DQG RQ WKH EDVLV RI RXU XQGHUVWDQGLQJ RI WKH EXVLQHVV DFWLYLWLHV DQG RSHUDWLRQV RI WKH
&RPSDQ\
)RU3LMXVK*XSWD&R
)LUP5HJLVWUDWLRQ1XPEHU(
&KDUWHUHG$FFRXQWDQWV
5DPHQGUD1DWK'DV
3DUWQHU
0HPEHUVKLS1R
'DWH0DUFK
$ ,03/,&$7,21681'(57+(,1&20(7$;$&7µ,7$&7¶
, 7RWKH5HVLGHQW'HEHQWXUH+ROGHU
,QWHUHVW RQ 1&' UHFHLYHG E\ 'HEHQWXUH +ROGHUV ZRXOG EH VXEMHFW WR WD[ DW WKH QRUPDO UDWHV RI WD[ LQ
DFFRUGDQFHZLWKDQGVXEMHFWWRWKHSURYLVLRQVRIWKH,7$FWDQGVXFKWD[ZRXOGQHHGWREHZLWKKHOGDWWKH
WLPH RI FUHGLWSD\PHQW DV SHU WKH SURYLVLRQV RI 6HFWLRQ RI WKH ,7 $FW +RZHYHU QR LQFRPH WD[ LV
GHGXFWLEOHDWVRXUFHLQUHVSHFWRIWKHIROORZLQJ
D 2Q DQ\ VHFXULW\ LVVXHG E\ D FRPSDQ\ LQ D GHPDWHULDOL]HG IRUP DQG LV OLVWHG RQ UHFRJQL]HG VWRFN
H[FKDQJH LQ ,QGLD LQ DFFRUGDQFH ZLWK WKH 6HFXULWLHV &RQWUDFWV 5HJXODWLRQ $FW DQG WKH UXOHV
PDGHWKHUHXQGHUZHI
E ,Q FDVH WKH SD\PHQW RI LQWHUHVW RQ GHEHQWXUHV WR D UHVLGHQW LQGLYLGXDO RU D +LQGX 8QGLYLGHG )DPLO\
µ+8)¶ 'HEHQWXUH +ROGHU GRHV QRW RU LV QRW OLNHO\ WR H[FHHG 5V LQ WKH DJJUHJDWH GXULQJ WKH
)LQDQFLDO\HDUDQGWKHLQWHUHVWLVSDLGE\DQDFFRXQWSD\HHFKHTXH
F :KHQWKH$VVHVVLQJ2IILFHULVVXHVDFHUWLILFDWHRQDQDSSOLFDWLRQE\D'HEHQWXUH+ROGHURQVDWLVIDFWLRQ
WKDW WKH WRWDO LQFRPH RI WKH 'HEHQWXUH KROGHU MXVWLILHV QR GHGXFWLRQ RI WD[ DW VRXUFH DV SHU WKH
SURYLVLRQVRI6HFWLRQRIWKH,7$FW DQGWKDWFHUWLILFDWHLVILOHGZLWKWKH&RPSDQ\EHIRUH
WKHSUHVFULEHGGDWHRIFORVXUHRIERRNVIRUSD\PHQWRIGHEHQWXUHLQWHUHVW7KH'HEHQWXUH KROGHU
FDQDOVRREWDLQFHUWLILFDWHIRUORZHUUDWHRIGHGXFWLRQ
GL :KHQ WKH UHVLGHQW 'HEHQWXUH +ROGHU ZLWK 3HUPDQHQW $FFRXQW 1XPEHU µ3$1¶ QRW EHLQJ D
FRPSDQ\RUDILUPVXEPLWVDGHFODUDWLRQDVSHUWKHSURYLVLRQVRIVHFWLRQ$$RIWKH,7$FW
LQ WKH SUHVFULEHG )RUP * YHULILHG LQ WKH SUHVFULEHG PDQQHU WR WKH HIIHFW WKDW WKH WD[ RQ KLV
HVWLPDWHGWRWDOLQFRPHRIWKHILQDQFLDO\HDULQZKLFKVXFKLQFRPHLVWREHLQFOXGHGLQFRPSXWLQJ
KLVWRWDOLQFRPHZLOOEH1,/+RZHYHUXQGHUVHFWLRQ$%RIWKH,7$FW)RUP*FDQQRW
EHVXEPLWWHGQRUFRQVLGHUHGIRUH[HPSWLRQIURPWD[GHGXFWLRQDWVRXUFHLIWKHDJJUHJDWHRILQWHUHVW
LQFRPH FUHGLWHG RU SDLGRU OLNHO\ WR EH FUHGLWHG RUSDLG GXULQJ WKH )LQDQFLDO \HDU LQ ZKLFK VXFK
LQFRPHLVWREHLQFOXGHGH[FHHGVWKHPD[LPXPDPRXQWZKLFKLVQRWFKDUJHDEOHWRWD[DVPD\EH
SUHVFULEHGLQHDFK\HDU¶V)LQDQFH$FW
7RLOOXVWUDWHDVRQWKH PD[LPXPDPRXQWRI LQFRPH QRWFKDUJHDEOHWR WD[LQFDVHRI
LQGLYLGXDOVRWKHUWKDQVHQLRUFLWL]HQVDQGVXSHUVHQLRUFLWL]HQVDQG+8)VLV5VLQWKH
FDVHRIHYHU\LQGLYLGXDOEHLQJDUHVLGHQWLQ,QGLDZKRLVRIWKHDJHRI\HDUVRUPRUHEXWOHVV
WKDQ\HDUVDWDQ\WLPHGXULQJWKH)LQDQFLDO\HDU6HQLRU&LWL]HQLV5VDQGLQWKHFDVH
RI HYHU\ LQGLYLGXDO EHLQJ D UHVLGHQW LQ ,QGLD ZKR LV RI WKH DJH RI \HDUV RU PRUH DW DQ\ WLPH
GXULQJWKH)LQDQFLDO\HDU6XSHU6HQLRU&LWL]HQLV5VIRU)LQDQFLDO<HDU
LL6HQLRUFLWL]HQVZKRDUHRUPRUH \HDUVRIDJHDWDQ\WLPHGXULQJWKH ILQDQFLDO\HDUHQMR\WKH
VSHFLDOSULYLOHJHWRVXEPLWDVHOIGHFODUDWLRQLQWKHSUHVFULEHG)RUP+IRUQRQGHGXFWLRQRIWD[
DW VRXUFH LQ DFFRUGDQFH ZLWK WKH SURYLVLRQV RI VHFWLRQ $& RI WKH ,7 $FW HYHQ LI WKH
DJJUHJDWHLQFRPHFUHGLWHGRUSDLGRUOLNHO\WREHFUHGLWHGRUSDLGH[FHHGVWKH PD[LPXPDPRXQW
QRWFKDUJHDEOHWRWD[IRU)< SURYLGHGWKDWWKH WD[GXH RQWRWDO LQFRPHRI WKHSHUVRQLV
1,/
LLL,QDOORWKHUVLWXDWLRQVWD[ZRXOGEHGHGXFWHGDWVRXUFHDVSHUSUHYDLOLQJSURYLVLRQVRIWKH,7$FW
)RUP1R*ZLWK3$1)RUP1R+ZLWK3$1&HUWLILFDWHLVVXHGXVKDVWREHILOHG
ZLWKWKH&RPSDQ\EHIRUHWKHSUHVFULEHGGDWHRIFORVXUHRIERRNVIRUSD\PHQWRIGHEHQWXUHLQWHUHVW
ZLWKRXWDQ\WD[ZLWKKROGLQJ
,QFDVHZKHUHWD[KDVWREHGHGXFWHGDWVRXUFHZKLOHSD\LQJGHEHQWXUHLQWHUHVWWKH&RPSDQ\LVQRWUHTXLUHG
WRGHGXFWVXUFKDUJHHGXFDWLRQFHVVDQGVHFRQGDU\DQGKLJKHUHGXFDWLRQFHVV
$VSHUVHFWLRQ$RIWKH,7$FWUHDGZLWKVHFWLRQ$RIWKH,7$FWDOLVWHGGHEHQWXUHLVWUHDWHGDV
DORQJWHUPFDSLWDODVVHWLIWKHVDPHLVKHOGIRUPRUHWKDQPRQWKVLPPHGLDWHO\SUHFHGLQJWKHGDWHRILWV
WUDQVIHU
$V SHU VHFWLRQ RI WKH ,7 $FW FDSLWDO JDLQV DULVLQJ RQ WKH WUDQVIHU RI ORQJ WHUP FDSLWDO DVVHWV EHLQJ
OLVWHGVHFXULWLHVDUHVXEMHFWWRWD[DWWKHUDWHRIRIFDSLWDOJDLQVFDOFXODWHGDIWHUUHGXFLQJLQGH[HGFRVW
RIDFTXLVLWLRQRURIFDSLWDOJDLQVZLWKRXWLQGH[DWLRQRIWKHFRVWRIDFTXLVLWLRQ7KHFDSLWDOJDLQVZLOOEH
FRPSXWHG E\ GHGXFWLQJ H[SHQGLWXUH LQFXUUHG LQ FRQQHFWLRQ ZLWK VXFK WUDQVIHU DQG FRVW RI
DFTXLVLWLRQLQGH[HGFRVWRIDFTXLVLWLRQRIWKHGHEHQWXUHVIURPWKHVDOHFRQVLGHUDWLRQ
+RZHYHUDVSHUWKHWKLUGSURYLVRWRVHFWLRQRI,7$FWEHQHILWRILQGH[DWLRQRIFRVWRIDFTXLVLWLRQXQGHU
VHFRQG SURYLVR RI VHFWLRQ RI ,7 $FW LV QRW DYDLODEOH LQ FDVH RI ERQGV DQG GHEHQWXUH H[FHSW FDSLWDO
LQGH[HGERQGV7KXVORQJWHUPFDSLWDOJDLQVDULVLQJRXWRIOLVWHGGHEHQWXUHVZRXOGEHVXEMHFWWRWD[DWWKH
UDWHRIFRPSXWHGZLWKRXWLQGH[DWLRQ
,Q FDVH RI DQ LQGLYLGXDO RU +8) EHLQJ D UHVLGHQW ZKHUH WKH WRWDO LQFRPH DV UHGXFHG E\ VXFK ORQJWHUP
FDSLWDOJDLQVLVEHORZWKH PD[LPXPDPRXQW ZKLFKLVQRW FKDUJHDEOHWRLQFRPHWD[WKHQVXFKORQJWHUP
FDSLWDO JDLQV VKDOO EH UHGXFHG E\ WKH DPRXQW E\ ZKLFK WKH WRWDO LQFRPH DV VR UHGXFHG IDOOV VKRUW RI WKH
PD[LPXP DPRXQW ZKLFK LV QRW FKDUJHDEOH WR LQFRPHWD[ DQG WKH WD[ RQ WKH EDODQFH RI VXFK ORQJWHUP
FDSLWDOJDLQVVKDOOEHFRPSXWHGDWWKHUDWHPHQWLRQHGDERYH
6KRUWWHUPFDSLWDOJDLQVRQWKHWUDQVIHURIOLVWHGGHEHQWXUHVZKHUHGHEHQWXUHVDUHKHOGIRUDSHULRGRIQRW
PRUH WKDQ PRQWKV ZRXOG EH WD[HG DW WKH QRUPDO UDWHV RI WD[ LQ DFFRUGDQFH ZLWK DQG VXEMHFW WR WKH
SURYLVLRQVRIWKH,7$FW7KHSURYLVLRQVUHODWLQJ WRPD[LPXPDPRXQWQRWFKDUJHDEOHWRWD[GHVFULEHGDW
SDUDDERYHZRXOGDOVRDSSO\WRVXFKVKRUWWHUPFDSLWDOJDLQV
,IWKHGHEHQWXUHVDUHKHOGDVVWRFNLQWUDGHWKHLQFRPHRQWUDQVIHURIGHEHQWXUHVZRXOGEHWD[HGDVEXVLQHVV
LQFRPHRUORVVLQDFFRUGDQFHZLWKDQGVXEMHFWWRWKHSURYLVLRQVRIWKH,7$FW
,, 7RWKH1RQ5HVLGHQW'HEHQWXUH+ROGHU
$ QRQUHVLGHQW ,QGLDQ KDV DQ RSWLRQ WR EH JRYHUQHG E\ &KDSWHU ;,,$ RI WKH ,7 $FW VXEMHFW WR WKH
SURYLVLRQVFRQWDLQHGWKHUHLQZKLFKDUHJLYHQLQEULHIDVXQGHU
D 8QGHU VHFWLRQ ( RI WKH ,7 $FW LQWHUHVW LQFRPH IURP GHEHQWXUHV DFTXLUHG RU SXUFKDVHG ZLWK RU
VXEVFULEHGWRLQFRQYHUWLEOHIRUHLJQH[FKDQJHZLOOEHWD[DEOHDWZKHUHDVORQJWHUPFDSLWDOJDLQV
RQWUDQVIHURIVXFK'HEHQWXUHVZLOOEHWD[DEOHDWRIVXFKFDSLWDOJDLQVZLWKRXWLQGH[DWLRQRIFRVW
RIDFTXLVLWLRQ6KRUWWHUPFDSLWDOJDLQVZLOOEHWD[DEOHDWWKHQRUPDOUDWHVRIWD[LQDFFRUGDQFHZLWKWKH
SURYLVLRQVFRQWDLQHGWKHUHLQ
E 8QGHU VHFWLRQ ) RI WKH ,7 $FW ORQJ WHUP FDSLWDO JDLQV DULVLQJ WR D QRQUHVLGHQW ,QGLDQ IURP
WUDQVIHURIGHEHQWXUHVDFTXLUHGRUSXUFKDVHGZLWKRUVXEVFULEHGWRLQFRQYHUWLEOHIRUHLJQH[FKDQJHZLOO
EHH[HPSWIURPFDSLWDOJDLQWD[LIWKHQHWFRQVLGHUDWLRQLVLQYHVWHGZLWKLQVL[PRQWKVDIWHUWKHGDWHRI
WUDQVIHU RI WKH GHEHQWXUHV LQ DQ\ VSHFLILHG DVVHW RU LQ DQ\ VDYLQJ FHUWLILFDWHV UHIHUUHG WR LQ VHFWLRQ
%RIWKH,7$FWLQDFFRUGDQFHZLWKWKHSURYLVLRQVFRQWDLQHGWKHUHLQ
F 8QGHUVHFWLRQ*RIWKH,7$FWLWVKDOOQRWEHQHFHVVDU\IRUDQRQUHVLGHQW,QGLDQWRILOHDUHWXUQRI
LQFRPHXQGHUVHFWLRQRIWKH,7$FWLIKLVWRWDOLQFRPHFRQVLVWVRQO\RILQYHVWPHQWLQFRPHDV
GHILQHG XQGHU VHFWLRQ & DQGRU ORQJ WHUP FDSLWDO JDLQV HDUQHG RQ WUDQVIHU RI VXFK LQYHVWPHQW
DFTXLUHG RXW RI FRQYHUWLEOH IRUHLJQ H[FKDQJH DQG WKH WD[ KDV EHHQ GHGXFWHG DW VRXUFH IURP VXFK
LQFRPHXQGHUWKHSURYLVLRQVRI&KDSWHU;9,,%RIWKH,7$FWLQDFFRUGDQFHZLWKDQGVXEMHFWWRWKH
SURYLVLRQVFRQWDLQHGWKHUHLQ
G 8QGHU VHFWLRQ + RI WKH ,7 $FW ZKHUH D QRQUHVLGHQW ,QGLDQ EHFRPHV D UHVLGHQW LQ ,QGLD LQ DQ\
VXEVHTXHQW\HDUKHPD\IXUQLVKWRWKH$VVHVVLQJ2IILFHUDGHFODUDWLRQLQZULWLQJDORQJZLWKUHWXUQRI
LQFRPHXQGHUVHFWLRQIRUWKHDVVHVVPHQW\HDUIRUZKLFKKHLVDVVHVVDEOHDVDUHVLGHQWWRWKHHIIHFW
WKDWWKHSURYLVLRQVRI&KDSWHU;,,$VKDOOFRQWLQXHWRDSSO\WRKLPLQUHODWLRQWRWKHLQYHVWPHQWLQFRPH
RWKHUWKDQRQVKDUHVLQDQ,QGLDQ&RPSDQ\GHULYHGIURPDQ\IRUHLJQH[FKDQJHDVVHWVLQDFFRUGDQFH
ZLWKDQGVXEMHFWWRWKHSURYLVLRQVFRQWDLQHGWKHUHLQ2QGRLQJVRWKHSURYLVLRQVRI&KDSWHU;,,$VKDOO
FRQWLQXHWRDSSO\WRKLPLQUHODWLRQWRVXFKLQFRPHIRUWKDWDVVHVVPHQW\HDUDQGIRUHYHU\VXEVHTXHQW
DVVHVVPHQW\HDUXQWLOWKHWUDQVIHURUFRQYHUVLRQRWKHUZLVHWKDQE\WUDQVIHULQWRPRQH\RIVXFKDVVHWV
,QDFFRUGDQFHZLWKWKHSURYLVLRQVRIVHFWLRQ,RIWKH,7$FWD1RQ5HVLGHQW,QGLDQPD\RSWQRWWREH
JRYHUQHGE\WKHSURYLVLRQVRI&KDSWHU;,,$RIWKH,7$FW,QWKDWFDVH
D
E
F
/RQJ WHUP FDSLWDO JDLQV RQ WUDQVIHU RI OLVWHG GHEHQWXUHV ZRXOG EH VXEMHFW WR WD[ DW WKH UDWH RI FRPSXWHGZLWKRXWLQGH[DWLRQ
6KRUWWHUPFDSLWDOJDLQVRQWKHWUDQVIHURIOLVWHGGHEHQWXUHVZKHUHGHEHQWXUHVDUHKHOGIRUDSHULRGRI
QRWPRUH WKDQPRQWKVSUHFHGLQJWKHGDWHRIWUDQVIHUZRXOGEHWD[HGDWWKHQRUPDOUDWHVRIWD[LQ
DFFRUGDQFHZLWKDQGVXEMHFWWRWKHSURYLVLRQVRIWKH,7$FW
:KHUHGHEHQWXUHVDUHKHOGDVVWRFNLQWUDGHWKHLQFRPHRQWUDQVIHURIGHEHQWXUHVZRXOGEHWD[HGDV
EXVLQHVVLQFRPHRUORVVLQDFFRUGDQFHZLWKDQGVXEMHFWWRWKHSURYLVLRQVRIWKH,7$FW
8QGHU6HFWLRQRIWKH,7$FWWKHFRPSDQ\LVUHTXLUHGWRGHGXFWWD[DWVRXUFHLHRQLQYHVWPHQW
LQFRPHDQGRQDQ\ORQJWHUPFDSLWDOJDLQVDVSHUVHFWLRQ(DQGDWWKHQRUPDOUDWHVIRU6KRUW7HUP
&DSLWDO*DLQVLIWKHSD\HH'HEHQWXUH+ROGHULVD1RQ5HVLGHQW,QGLDQ
,QFDVHRIIRUHLJQFRPSDQLHVZKHUHWKHLQFRPHSDLGRUOLNHO\WREHSDLGH[FHHGV5VEXWGRHV
QRWH[FHHGWHQFURUHUXSHHVDVXUFKDUJHRIRIVXFKWD[OLDELOLW\LVSD\DEOHDQGZKHQVXFKLQFRPHSDLGRU
OLNHO\WREHSDLGRUOLNHO\WREHSDLGH[FHHGVUXSHHVWHQFURUHVVXUFKDUJHDWRIVXFKWD[LVSD\DEOH
HGXFDWLRQFHVVDQGVHFRQGDU\DQGKLJKHUHGXFDWLRQFHVVRQWKHWRWDOLQFRPHWD[LQFOXGLQJVXUFKDUJHLV
DOVRGHGXFWLEOH
7KH)LQDQFH$FWKDVLQVHUWHGDQHZVHFWLRQ/&LQWKH,7$FWZKLFKSURYLGHVIRUORZHUUDWHRI
ZLWKKROGLQJ WD[ DW WKH UDWH RI DV DJDLQVW RQ SD\PHQW E\ ZD\ RI LQWHUHVW SDLG E\ DQ ,QGLDQ
FRPSDQ\WRDQRQUHVLGHQWLQFOXGLQJDIRUHLJQFRPSDQ\LQUHVSHFWRIERUURZLQJPDGHLQIRUHLJQFXUUHQF\
IURP VRXUFHV RXWVLGH ,QGLD EHWZHHQ -XO\ DQG -XO\ XQGHU D ORDQ DJUHHPHQW DSSURYHG E\
&HQWUDO*RYHUQPHQW
7KH)LQDQFH$FWKDVLQVHUWHGDQHZVHFWLRQ/'LQWKH,7$FWZKLFKSURYLGHVWKDWDQ\SHUVRQZKR
LVUHVSRQVLEOHIRUSD\LQJWR)RUHLJQ,QVWLWXWLRQDO,QYHVWRURUD4XDOLILHG)RUHLJQ,QYHVWRUDQ\LQWHUHVWDIWHU
EXW EHIRUH LQ UHVSHFW RI LQYHVWPHQWV PDGH E\ WKH SD\HH LQ D UXSHH GHQRPLQDWHG
ERQGRIDQ,QGLDQ&RPSDQ\RUD*RYHUQPHQW6HFXULW\GHGXFWLQFRPHWD[WKHUHRQ#SURYLGHGWKDWWKH
UDWHRILQWHUHVWLQUHVSHFWRIERQGVKDOOQRWH[FHHGWKHUDWHDVPD\EHQRWLILHGE\WKH&HQWUDO*RYHUQPHQWLQ
WKLVEHKDOI,QDGGLWLRQWRWKDWDSSOLFDEOHVXUFKDUJHHGXFDWLRQFHVVDWRQLQFRPHWD[VXUFKDUJHDQG
KLJKHUVHFRQGDU\HGXFDWLRQFHVVDWRQLQFRPHWD[VXUFKDUJHZLOODOVREHGHGXFWHG
$VSHUVHFWLRQRIWKH ,7$FWUHDG ZLWKWKH &LUFXODUQRGDWHG2FWREHULVVXHGE\WKH
&HQWUDO%RDUGRI'LUHFW7D[HVLQWKHFDVHRIDUHPLWWDQFHWRDFRXQWU\ZLWKZKLFKD'RXEOH7D[$YRLGDQFH
$JUHHPHQW'7$$LVLQIRUFHWKHWD[VKRXOGEHGHGXFWHGDWWKHUDWHSURYLGHGLQWKH)LQDQFH$FWRIWKH
UHOHYDQW\HDURUDWWKHUDWHSURYLGHGLQWKH'7$$ZKLFKHYHULVPRUHEHQHILFLDOWRWKHDVVHVVHH+RZHYHU
VXEPLVVLRQ RI WD[ UHVLGHQF\ FHUWLILFDWH FRQWDLQLQJ SUHVFULEHG SDUWLFXODUV LV D PDQGDWRU\ FRQGLWLRQ IRU
DYDLOLQJEHQHILWVXQGHUDQ\'7$$
$OWHUQDWLYHO\ WR HQVXUH QRQ GHGXFWLRQ RU ORZHU GHGXFWLRQ RI WD[ DW VRXUFH DV WKH FDVH PD\ EH WKH
'HEHQWXUH +ROGHU VKRXOG IXUQLVK D FHUWLILFDWH XQGHU VHFWLRQ RI WKH ,7 $FW IURP WKH $VVHVVLQJ
2IILFHU EHIRUH WKH SUHVFULEHG GDWH RI FORVXUH RI ERRNV IRU SD\PHQW RI GHEHQWXUH LQWHUHVW +RZHYHU DQ
DSSOLFDWLRQIRUWKHLVVXDQFHRIVXFKFHUWLILFDWH ZRXOGQRWEHHQWHUWDLQHGLQWKHDEVHQFHRI3$1DVSHUWKH
SURYLVLRQVRIVHFWLRQ$$
,,,7RWKH)RUHLJQ,QVWLWXWLRQDO,QYHVWRUV),,V
,QDFFRUGDQFHZLWKDQGVXEMHFWWRWKHSURYLVLRQVRIVHFWLRQ$'RIWKH,7$FWORQJWHUPFDSLWDOJDLQV
RQWUDQVIHURIGHEHQWXUHVE\),,VDUHWD[DEOHDWSOXVDSSOLFDEOHVXUFKDUJHDQGHGXFDWLRQDQGVHFRQGDU\
DQGKLJKHUHGXFDWLRQFHVVDQGVKRUWWHUPFDSLWDOJDLQVDUHWD[DEOHDWSOXVDSSOLFDEOHVXUFKDUJHDQG
HGXFDWLRQDQGVHFRQGDU\DQG KLJKHUHGXFDWLRQFHVV7KH EHQHILW RIFRVWLQGH[DWLRQ ZLOO QRWEH DYDLODEOH
)XUWKHUEHQHILWRISURYLVLRQVRIWKHILUVWSURYLVRRIVHFWLRQRIWKH,7$FWZLOOQRWDSSO\
,QFRPHRWKHUWKDQFDSLWDOJDLQVDULVLQJRXWRIGHEHQWXUHVLVWD[DEOHDWLQDFFRUGDQFHZLWKDQGVXEMHFW
WRWKHSURYLVLRQVRI6HFWLRQ$',QDGGLWLRQWRWKHDIRUHVDLGWD[LQFDVHRIIRUHLJQFRUSRUDWH),,VZKHUH
WKHLQFRPHH[FHHGV5VEXWGRHVQRWH[FHHG5XSHHV7HQ&URUHVDVXUFKDUJHRIRIVXFKWD[
OLDELOLW\LVDOVRSD\DEOHDQGZKHQWKH,QFRPHH[FHHGLQJ5XSHHV7HQ&URUHVDVXUFKDUJHDWRIVXFKWD[
OLDELOLW\ LV DOVR SD\DEOH $ HGXFDWLRQ FHVV DQG VHFRQGDU\ DQG KLJKHU HGXFDWLRQ FHVV RQ WKH WRWDO
LQFRPHWD[LQFOXGLQJVXUFKDUJHLVSD\DEOHE\DOOFDWHJRULHVRI),,¶V
,QDFFRUGDQFHZLWKDQGVXEMHFWWRWKHSURYLVLRQVRIVHFWLRQ'RIWKH,7$FWQRGHGXFWLRQRIWD[DW
VRXUFHLVDSSOLFDEOHLQUHVSHFWRIFDSLWDOJDLQVDULVLQJRQWKHWUDQVIHURIGHEHQWXUHVE\),,V
7KHSURYLVLRQVDWSDUD,,DQGDERYHZRXOGDOVRDSSO\WR),,V
,97RWKH2WKHU(OLJLEOH,QVWLWXWLRQV
$OOPXWXDOIXQGVUHJLVWHUHGXQGHU6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLDRUVHWXSE\SXEOLFVHFWRUEDQNV
RUSXEOLFILQDQFLDOLQVWLWXWLRQVRUDXWKRULVHGE\WKH5HVHUYH%DQNRI,QGLDDUHH[HPSWIURPWD[RQDOOWKHLU
LQFRPHLQFOXGLQJLQFRPHIURP LQYHVWPHQWLQ'HEHQWXUHVXQGHUWKHSURYLVLRQVRI6HFWLRQ'RIWKH
,7$FWVXEMHFWWRDQGLQDFFRUGDQFHZLWKWKHSURYLVLRQVFRQWDLQHGWKHUHLQ
9 ([HPSWLRQXQGHU6HFWLRQV(&DQG)RIWKH,7$FW
8QGHUVHFWLRQ(&RIWKH,7$FWORQJWHUPFDSLWDOJDLQVDULVLQJWRWKHGHEHQWXUHKROGHUVRQWUDQVIHURI
WKHLUGHEHQWXUHVLQWKHFRPSDQ\VKDOOQRWEHFKDUJHDEOHWRWD[WRWKHH[WHQWVXFKFDSLWDOJDLQVDUHLQYHVWHG
LQFHUWDLQQRWLILHGERQGV ZLWKLQVL[PRQWKVDIWHUWKHGDWH RIWUDQVIHU,IRQO\SDUWRIWKHFDSLWDOJDLQLVVR
LQYHVWHG WKH H[HPSWLRQ VKDOO EH SURSRUWLRQDWHO\ UHGXFHG +RZHYHU LI WKH VDLG QRWLILHG ERQGV DUH
WUDQVIHUUHGRUFRQYHUWHGLQWRPRQH\ZLWKLQDSHULRGRIWKUHH\HDUVIURPWKHLUGDWHRIDFTXLVLWLRQWKHDPRXQW
RIFDSLWDOJDLQVH[HPSWHGHDUOLHUZRXOGEHFRPHFKDUJHDEOHWRWD[DVORQJWHUPFDSLWDOJDLQVLQWKH\HDULQ
ZKLFKWKHERQGVDUHWUDQVIHUUHGRUFRQYHUWHGLQWRPRQH\+RZHYHUWKHH[HPSWLRQLVVXEMHFWWRDOLPLWRI
LQYHVWPHQW RI 5V /DNKV GXULQJ DQ\ ILQDQFLDO \HDU LQ WKH QRWLILHG ERQGV :KHUH WKH EHQHILW RI VHFWLRQ
(&RIWKH$FWKDVEHHQDYDLOHGRIRQLQYHVWPHQWVLQWKHQRWLILHGERQGVDGHGXFWLRQIURPWKHLQFRPHZLWK
UHIHUHQFHWRVXFKFRVWVKDOOQRWEHDOORZHGXQGHUVHFWLRQ&RIWKH$FW
$VSHUWKHSURYLVLRQVRIVHFWLRQ)RIWKH,7$FWDQ\ORQJWHUPFDSLWDOJDLQVRQWUDQVIHURIDORQJWHUP
FDSLWDO DVVHW QRW EHLQJ UHVLGHQWLDO KRXVH DULVLQJ WR D 'HEHQWXUH +ROGHU ZKR LV DQ LQGLYLGXDO RU +LQGX
8QGLYLGHG)DPLO\LVH[HPSWIURPWD[LIWKHHQWLUHQHWVDOHVFRQVLGHUDWLRQLVXWLOL]HGZLWKLQDSHULRGRIRQH
\HDU EHIRUH RU WZR \HDUV DIWHU WKH GDWH RI WUDQVIHU LQ SXUFKDVH RI D QHZ UHVLGHQWLDO KRXVH RU IRU
FRQVWUXFWLRQ RI UHVLGHQWLDO KRXVH ZLWKLQ WKUHH \HDUV IURP WKH GDWH RI WUDQVIHU ,I SDUW RI VXFK QHW VDOHV
FRQVLGHUDWLRQ LV LQYHVWHG ZLWKLQ WKH SUHVFULEHG SHULRG LQ D UHVLGHQWLDO KRXVH WKHQ VXFK JDLQV ZRXOG EH
FKDUJHDEOHWRWD[RQDSURSRUWLRQDWHEDVLV
7KLVH[HPSWLRQLVDYDLODEOHVXEMHFWWRWKHFRQGLWLRQWKDWWKH'HEHQWXUH+ROGHUGRHVQRWRZQPRUHWKDQRQH
UHVLGHQWLDOKRXVHDWWKHWLPHRIVXFKWUDQVIHU,IWKHUHVLGHQWLDOKRXVHLQZKLFKWKHLQYHVWPHQWKDVEHHQPDGH
LV WUDQVIHUUHG ZLWKLQ D SHULRG RI WKUHH \HDUV IURP WKH GDWH RI LWV SXUFKDVH RU FRQVWUXFWLRQ WKH DPRXQW RI
FDSLWDOJDLQVWD[H[HPSWHGHDUOLHUZRXOGEHFRPHFKDUJHDEOHWRWD[DVORQJWHUPFDSLWDOJDLQVLQWKH\HDULQ
ZKLFKVXFKUHVLGHQWLDOKRXVHLVWUDQVIHUUHG6LPLODUO\LIWKH'HEHQWXUH+ROGHUSXUFKDVHVZLWKLQDSHULRGRI
WZR \HDUV RU FRQVWUXFWV ZLWKLQ D SHULRG RI WKUHH \HDUV DIWHU WKH GDWH RI WUDQVIHU RI FDSLWDO DVVHW DQRWKHU
UHVLGHQWLDOKRXVHRWKHUWKDQWKHQHZUHVLGHQWLDOKRXVHUHIHUUHGDERYHWKHQWKHRULJLQDOH[HPSWLRQZLOOEH
WD[HGDVFDSLWDOJDLQVLQWKH\HDULQZKLFKWKHDGGLWLRQDOUHVLGHQWLDOKRXVHLVDFTXLUHG
9,5HTXLUHPHQWWRIXUQLVK3$1XQGHUWKH,7$FW
6HF$$
D 6HFWLRQ $$ UHTXLUHV HYHU\ SHUVRQ IURP ZKRVH LQFRPH WD[ KDV EHHQ GHGXFWHG DW VRXUFH XQGHU
FKDSWHU ;9,,% RI WKH ,7 $FW WR IXUQLVK KLV 3$1 WR WKH SHUVRQ UHVSRQVLEOH IRU GHGXFWLRQ RI WD[ DW
VRXUFH
6HF$$
D 6HFWLRQ $$ RI WKH ,7 $FW UHTXLUHV HYHU\ SHUVRQ HQWLWOHG WR UHFHLYH DQ\ VXP RQ ZKLFK WD[ LV
GHGXFWLEOHXQGHU&KDSWHU;9,,%µGHGXFWHH¶WRIXUQLVKKLV3$1WRWKHGHGXFWRUIDLOLQJZKLFKDWWUDFWV
WD[VKDOOEHGHGXFWHGDWWKHKLJKHURIWKHIROORZLQJUDWHV
L DWWKHUDWHVSHFLILHGLQWKHUHOHYDQWSURYLVLRQRIWKH,7$FWRU
LLDWWKHUDWHRUUDWHVLQIRUFHRU
LLLDWWKHUDWHRIWZHQW\SHUFHQW
E
F
$ GHFODUDWLRQ XQGHU 6HFWLRQ $ RU $$ $& VKDOO QRW EH YDOLG XQOHVV WKH SHUVRQ
IXUQLVKHVKLV3$1LQVXFKGHFODUDWLRQDQGWKHGHGXFWRULVUHTXLUHGWRGHGXFWWD[DVSHU3DUDDDERYH
LQVXFKDFDVH
:KHUHDZURQJ3$1LVSURYLGHGLWZLOOEHUHJDUGHGDVQRQIXUQLVKLQJRI3$1DQG3DUDDDERYHZLOO
DSSO\
9,,7D[DELOLW\RIJLIWVUHFHLYHGIRUQLORULQDGHTXDWHFRQVLGHUDWLRQ
$VSHUVHFWLRQYLLRIWKH,7$FWZKHUHDQLQGLYLGXDORU+LQGX8QGLYLGHG)DPLO\UHFHLYHVGHEHQWXUHV
IURPDQ\SHUVRQRQRUDIWHUVW2FWREHU
L ZLWKRXW DQ\ FRQVLGHUDWLRQ DJJUHJDWH IDLU PDUNHW YDOXH RI ZKLFK H[FHHGV ILIW\ WKRXVDQG UXSHHV WKHQ WKH
ZKROHRIWKHDJJUHJDWHIDLUPDUNHWYDOXHRIVXFKGHEHQWXUHVRU
LLIRU D FRQVLGHUDWLRQ ZKLFK LV OHVV WKDQ WKH DJJUHJDWH IDLU PDUNHW YDOXH RI WKH GHEHQWXUH E\ DQ DPRXQW
H[FHHGLQJILIW\WKRXVDQGUXSHHVWKHQWKHDJJUHJDWHIDLUPDUNHWYDOXHRIVXFKGHEHQWXUHVDVH[FHHGVVXFK
FRQVLGHUDWLRQ
VKDOOEHWD[DEOHDVWKHLQFRPHRIWKHUHFLSLHQWDWWKHQRUPDOUDWHVRIWD[
+RZHYHUWKLVSURYLVLRQZRXOGQRWDSSO\WRDQ\UHFHLSW
D IURPDQ\UHODWLYHRU
E RQWKHRFFDVLRQRIWKHPDUULDJHRIWKHLQGLYLGXDORU
F XQGHUDZLOORUE\ZD\RILQKHULWDQFHRU
G LQFRQWHPSODWLRQRIGHDWKRIWKHSD\HURUGRQRUDVWKHFDVHPD\EHRU
H IURPDQ\ORFDODXWKRULW\DVGHILQHGLQ6HFWLRQRIWKH,7$FW
I IURP DQ\ IXQG RU IRXQGDWLRQ RU XQLYHUVLW\ RU RWKHU HGXFDWLRQDO LQVWLWXWLRQ RU KRVSLWDO RU RWKHU PHGLFDO
LQVWLWXWLRQRUDQ\WUXVWRULQVWLWXWLRQUHIHUUHGWRLQ6HFWLRQ&
J IURPDQ\WUXVWRULQVWLWXWLRQUHJLVWHUHGXQGHUVHFWLRQ$$
%,03/,&$7,21681'(57+(:($/7+7$;$&7
:HDOWKWD[LVQRWOHYLHGRQLQYHVWPHQWLQGHEHQWXUHVXQGHUVHFWLRQHDRIWKH:HDOWKWD[$FW
1RWHV
7KH DERYH 6WDWHPHQW VHWV RXW WKH SURYLVLRQV RI ODZ LQ D VXPPDU\ PDQQHU RQO\ DQG LV QRW D FRPSOHWH
DQDO\VLVRUOLVWLQJRIDOOSRWHQWLDOWD[FRQVHTXHQFHVRIWKHSXUFKDVHRZQHUVKLSDQGGLVSRVDORIVKDUHV
7KHDERYHVWDWHPHQWFRYHUVRQO\FHUWDLQUHOHYDQWEHQHILWVXQGHUWKH,QFRPHWD[$FW:HDOWK7D[$FW
FROOHFWLYHO\UHIHUUHGWRDVµGLUHFWWD[ODZV¶DQGGRHVQRWFRYHUEHQHILWVXQGHUDQ\RWKHUODZ
7KH DERYH VWDWHPHQW RI SRVVLEOH WD[ EHQHILWV DUH DV SHU WKH FXUUHQW GLUHFW WD[ ODZV UHOHYDQW IRU WKH
DVVHVVPHQW \HDU6HYHUDORI WKHVH EHQHILWVDUH GHSHQGHQWRQWKH'HEHQWXUH+ROGHUIXOILOOLQJWKH
FRQGLWLRQVSUHVFULEHGXQGHUWKHUHOHYDQWSURYLVLRQV
7KLV VWDWHPHQW LV LQWHQGHG RQO\ WR SURYLGH JHQHUDO LQIRUPDWLRQ WR WKH 'HEHQWXUH +ROGHUV DQG LV QHLWKHU
GHVLJQHGQRULQWHQGHGWREHDVXEVWLWXWHIRUSURIHVVLRQDOWD[DGYLFH,QYLHZRIWKHLQGLYLGXDOQDWXUHRIWD[
FRQVHTXHQFHV HDFK 'HEHQWXUH +ROGHU LV DGYLVHG WR FRQVXOW KLVKHULWV RZQ WD[ DGYLVRU ZLWK UHVSHFW WR
VSHFLILFWD[FRQVHTXHQFHVRIKLVKHULWVKROGLQJLQWKHGHEHQWXUHVRIWKH&RPSDQ\
7KH VWDWHGEHQHILWV ZLOOEH DYDLODEOHRQO\ WRWKH VROHILUVW QDPHG KROGHULQFDVH WKHGHEHQWXUHLV KHOGE\
MRLQWKROGHUV
,QUHVSHFWRIQRQUHVLGHQWVWKHWD[UDWHVDQGFRQVHTXHQWWD[DWLRQPHQWLRQHGDERYHZLOOEHIXUWKHUVXEMHFWWR
DQ\ EHQHILWV DYDLODEOH XQGHU WKH UHOHYDQW WD[ WUHDW\ LI DQ\ EHWZHHQ ,QGLD DQG WKH FRXQWU\ LQ ZKLFK WKH
QRQUHVLGHQWKDVILVFDOGRPLFLOH
,Q UHVSHFW RI QRQUHVLGHQWV WD[HV SDLG LQ ,QGLD FRXOG EH FODLPHG DV D FUHGLW LQ DFFRUGDQFH ZLWK WKH
SURYLVLRQVRIWKHUHOHYDQWWD[WUHDW\
1RDVVXUDQFHLVJLYHQWKDWWKHUHYHQXHDXWKRULWLHVFRXUWVZLOOFRQFXUZLWKWKHYLHZVH[SUHVVHGKHUHLQ2XUYLHZV
DUHEDVHGRQWKHH[LVWLQJSURYLVLRQVRIODZDQGLWVLQWHUSUHWDWLRQZKLFKDUHVXEMHFWWRFKDQJHVIURPWLPHWRWLPH
:HGRQRWDVVXPHUHVSRQVLELOLW\WRXSGDWHWKHYLHZVFRQVHTXHQWWRVXFKFKDQJHV:HVKDOOQRWEHOLDEOHWRDQ\
FODLPVOLDELOLWLHVRUH[SHQVHVUHODWLQJWRWKLVDVVLJQPHQWH[FHSWWRWKHH[WHQWRIIHHVUHODWLQJWRWKLVDVVLJQPHQW
DVILQDOO\MXGLFLDOO\GHWHUPLQHGWRKDYHUHVXOWHGSULPDULO\IURPEDGIDLWKRULQWHQWLRQDOPLVFRQGXFW:HZLOOQRW
EHOLDEOHWRDQ\RWKHUSHUVRQLQUHVSHFWRIWKLVVWDWHPHQW
INDUSTRY OVERVIEW
7KH LQIRUPDWLRQ SUHVHQWHG LQ WKLV VHFWLRQ KDV EHHQ REWDLQHG IURP SXEOLFO\ DYDLODEOH GRFXPHQWV IURP YDULRXV
VRXUFHV LQFOXGLQJ RIILFLDOO\ SUHSDUHG PDWHULDOV IURP WKH *RYHUQPHQW RI ,QGLD DQG LWV YDULRXV PLQLVWULHV
LQGXVWU\ZHEVLWHVSXEOLFDWLRQVDQGFRPSDQ\HVWLPDWHV,QGXVWU\ZHEVLWHVDQGSXEOLFDWLRQVJHQHUDOO\VWDWHWKDW
WKH LQIRUPDWLRQ FRQWDLQHG WKHUHLQ KDV EHHQ REWDLQHG IURP VRXUFHV EHOLHYHG WR EH UHOLDEOH EXW WKHLU DFFXUDF\
FRPSOHWHQHVVDQGXQGHUO\LQJDVVXPSWLRQVDUHQRWJXDUDQWHHGDQGWKHLUUHOLDELOLW\FDQQRWEHDVVXUHG$OWKRXJK
ZH EHOLHYH LQGXVWU\ PDUNHW DQG JRYHUQPHQW GDWD XVHG LQ WKLV 3URVSHFWXV LV UHOLDEOH LW KDV QRW EHHQ
LQGHSHQGHQWO\YHULILHG
,QFRQQHFWLRQZLWKWKHUHSRUWE\,&5$0DQDJHPHQW&RQVXOWLQJ6HUYLFHV/LPLWHG³,0DFV´RQWKH*ROG/RDQ
0DUNHWLQ,QGLD±³,0DFV*ROG/RDQ5HSRUW´DOOLQIRUPDWLRQKDVEHHQREWDLQHGE\,0DFVIURP
VRXUFHVEHOLHYHGE\LWWREHDFFXUDWHDQGUHOLDEOH$OWKRXJKUHDVRQDEOHFDUHKDVEHHQWDNHQWRHQVXUHWKDWWKH
LQIRUPDWLRQLQWKH,0DFV*ROG/RDQ5HSRUWLVWUXHVXFKLQIRUPDWLRQLVSURYLGHGµDVLQ¶ZLWKRXWDQ\ZDUUDQW\RI
DQ\ NLQG DQG ,0DFV LQ SDUWLFXODU PDNHV QR UHSUHVHQWDWLRQ RU ZDUUDQW\ H[SUHVVHG RU LPSOLHG DV WR WKH
DFFXUDF\WLPHOLQHVRUFRPSOHWHQHVVRIDQ\VXFKLQIRUPDWLRQ$OOLQIRUPDWLRQFRQWDLQHGLQWKH,0DFV*ROG/RDQ
5HSRUWPXVWEHFRQVWUXHGVROHO\DVVWDWHPHQWVRIRSLQLRQDQG,0DFVVKDOOQRWEHOLDEOHIRUDQ\ORVVHVLQFXUUHG
E\XVHUVIRUDQ\XVHRIWKH,0DFV*ROG/RDQ5HSRUWRULWVFRQWHQWV
&5,6,/5HVHDUFKDGLYLVLRQRI&5,6,//LPLWHG&5,6,/KDVWDNHQGXHFDUHDQGFDXWLRQLQSUHSDULQJLWVUHSRUW
RQ 5HWDLO )LQDQFH ± $XWR 2FWREHU 5HSRUW EDVHG RQ WKH LQIRUPDWLRQ REWDLQHGE\&5,6,/ IURP VRXUFHV
ZKLFK LW FRQVLGHUV UHOLDEOH 'DWD +RZHYHU &5,6,/ GRHV QRW JXDUDQWHH WKH DFFXUDF\ DGHTXDF\ RU
FRPSOHWHQHVVRIWKH'DWD5HSRUWDQGLVQRWUHVSRQVLEOHIRUDQ\HUURUVRURPLVVLRQVRUIRUWKHUHVXOWVREWDLQHG
IURPWKHXVHRI'DWD5HSRUW7KLV5HSRUWLVQRWDUHFRPPHQGDWLRQWRLQYHVWGLVLQYHVWLQDQ\FRPSDQ\FRYHUHG
LQWKH5HSRUW&5,6,/HVSHFLDOO\VWDWHVWKDWLWKDVQROLDELOLW\ZKDWVRHYHUWRWKHVXEVFULEHUVXVHUVWUDQVPLWWHUV
GLVWULEXWRUVRIWKLV5HSRUW&5,6,/5HVHDUFKRSHUDWHVLQGHSHQGHQWO\RIDQGGRHVQRWKDYHDFFHVVWRLQIRUPDWLRQ
REWDLQHGE\&5,6,/¶V5DWLQJV'LYLVLRQ &5,6,/5LVNDQG,QIUDVWUXFWXUH 6ROXWLRQV/WG&5,6ZKLFKPD\LQ
WKHLUUHJXODURSHUDWLRQVREWDLQLQIRUPDWLRQRIDFRQILGHQWLDOQDWXUH7KHYLHZVH[SUHVVHGLQWKH5HSRUWDUHWKDW
RI &5,6,/ 5HVHDUFK DQG QRW RI &5,6,/¶V 5DWLQJV 'LYLVLRQ &5,6 1R SDUW RI WKLV 5HSRUW PD\ EH
SXEOLVKHGUHSURGXFHGLQDQ\IRUPZLWKRXW&5,6,/¶VSULRUZULWWHQDSSURYDO
2YHUYLHZRIWKH*OREDO(FRQRP\
$FFRUGLQJ WR WKH :RUOG (FRQRPLF 2XWORRN 5HSRUW JOREDO SURVSHFWV KDYH LPSURYHG DJDLQ EXW WKH URDG WR
UHFRYHU\LQWKHDGYDQFHGHFRQRPLHVZLOOUHPDLQEXPS\:RUOGRXWSXWJURZWKLVIRUHFDVWWRUHDFKVOLJKWO\DERYH
LQDQGLQ,QWKHPDMRUDGYDQFHGHFRQRPLHVDFWLYLW\LVH[SHFWHGWRJUDGXDOO\DFFHOHUDWH
IROORZLQJ D ZHDN VWDUW WR ZLWK WKH 8QLWHG 6WDWHV LQ WKH OHDG ,Q HPHUJLQJ PDUNHW DQG GHYHORSLQJ
HFRQRPLHV DFWLYLW\ KDV DOUHDG\ SLFNHG XS VWHDP 'RZQVLGH ULVNV WR JOREDO JURZWK SURVSHFWV VWLOO GRPLQDWH
ZKLOH ROG ULVNV UHPDLQ QHZ ULVNV KDYH HPHUJHG LQFOXGLQJ WKH SRVVLELOLW\ RI D ORQJHU JURZWK VORZGRZQ LQ
HPHUJLQJ PDUNHW HFRQRPLHV HVSHFLDOO\ JLYHQ ULVNV RI ORZHU SRWHQWLDO JURZWK VORZLQJ FUHGLW DQG SRVVLEO\
WLJKWHUILQDQFLDOFRQGLWLRQVLIWKHDQWLFLSDWHGXQZLQGLQJRIPRQHWDU\SROLF\VWLPXOXVLQWKH8QLWHG6WDWHVOHDGV
WRVXVWDLQHGFDSLWDOIORZUHYHUVDOV,QDGYDQFHGHFRQRPLHVWKHULJKWPDFURHFRQRPLFDSSURDFKFRQWLQXHVWREH
JUDGXDO EXW VXVWDLQHG ILVFDO DGMXVWPHQW EXLOW RQ PHDVXUHV WKDW OLPLW GDPDJH WR DFWLYLW\ DQG DFFRPPRGDWLYH
PRQHWDU\SROLF\DLPHGDWVXSSRUWLQJLQWHUQDOGHPDQG.H\DGYDQFHGHFRQRPLHVVKRXOGSXUVXHDSROLF\PL[WKDW
VXSSRUWVQHDUWHUPJURZWKDQFKRUHGE\FUHGLEOHSODQVIRUPHGLXPWHUPSXEOLFGHEWVXVWDLQDELOLW\7KLVZRXOG
DOVRDOORZ IRUPRUHJUDGXDOQHDUWHUP ILVFDODGMXVWPHQW6RXUFH,QWHUQDWLRQDO0RQHWDU\)XQG,0) :RUOG
(FRQRPLF2XWORRN:(2'DWDEDVH-XQHXSGDWH
2YHUYLHZRIWKH,QGLDQ(FRQRP\
,QGLDLVWKHZRUOG¶VODUJHVWGHPRFUDF\E\SRSXODWLRQDQGRQHRIWKHIDVWHVWJURZLQJHFRQRPLHVLQWKHZRUOG,WLV
WKHIRXUWKODUJHVWHFRQRP\LQWKHZRUOGLQWHUPVRIJURVVGRPHVWLFSURGXFW³*'3´RQWKHEDVLVRISXUFKDVLQJ
SRZHUSDULW\DIWHUWKH8QLWHG6WDWHVWKH(XURSHDQ8QLRQDQG&KLQD6RXUFH&,$:RUOG)DFWERRN0D\
7KH ,QGLDQ HFRQRP\ UHPDLQHG UHVLOLHQW GHVSLWH D VORZGRZQ LQ WKH WKLUG TXDUWHU RI DPLG D ZHDNHU
JOREDOHFRQRP\'XULQJWKLVSHULRG,QGLD¶V*'3JUHZDVFRPSDUHGWRGXULQJWKHWKLUGTXDUWHURI
6RXUFH 5%, 0DFURHFRQRPLF DQG 0RQHWDU\ 'HYHORSPHQWV LQ ,QGLDQ *'3 JURZWK FRQWLQXHV WR
UHPDLQ DERYH WKH JOREDO DYHUDJH 7KH ,0) IRUHFDVWV JOREDO JURZWK WR UHPDLQ VWHDG\ DW LQ EHIRUH
LPSURYLQJ WR LQ 6RXUFH 5%, 0DFURHFRQRPLF DQG 0RQHWDU\ 'HYHORSPHQWV LQ ,Q
FRQWUDVW,QGLD¶V*'3LQFUHDVHGE\LQDQGLWLVHVWLPDWHGWRJURZE\LQGHPRQVWUDWLQJWKH
VWUHQJWKRIWKH,QGLDQHFRQRP\6RXUFH,0):RUOG(FRQRPLF2XWORRN$SULO
0DFURHFRQRPLF2XWORRN
$GHFUHDVHLQJURZWKSHUVLVWHQWLQIODWLRQDQGWKHWZLQGHILFLWULVNVFDPHWRWKHIRUHGXULQJDQGDIIHFWHG
WKH,QGLDQHFRQRP\HQGDQJHULQJWKHUHYHUVDORILWVGHFOLQLQJJURZWKSDWK$PLGVWWUDGHRIIVPRQHWDU\SROLF\
PRYHG WR FDOLEUDWHG HDVLQJ WR DGGUHVV WKH JURZWK VORZ GRZQ DV KHDGOLQH LQIODWLRQ JUDGXDOO\ PRGHUDWHG 7KH
JRYHUQPHQW DOVR ODXQFKHG D FRQFHUWHG SROLF\ DFWLRQ DQG UHIRUPV GXULQJ WKH VHFRQG KDOI RI 7KHVH
UHIRUPVZLWKIXOOHULPSOHPHQWDWLRQDUHH[SHFWHGWRVWDUWUHFRYHU\LQ
&RUSRUDWH LQYHVWPHQW KDV GHFUHDVHG GXH WR VWUXFWXUDO DQG F\FOLFDO IDFWRUV DIWHU D FDSLWDO H[SHQGLWXUH ERRP
GXULQJ LQ ZKLFK SODQQHG IL[HG LQYHVWPHQWV RI FRPSDQLHV LQYROYHG LQ ODUJH SURMHFWV LQFUHDVHG
DSSUR[LPDWHO\WLPHVLQHLJKW\HDUV+RZHYHULIVWUXFWXUDOLVVXHVRIWKHNLQGPHQWLRQHGDERYHDUHTXLFNO\
UHVROYHGDWXUQDURXQGLQLQYHVWPHQWDFWLYLW\VKRXOGEHSRVVLEOH 6RXUFH5%,0DFURHFRQRPLFDQG0RQHWDU\
'HYHORSPHQWVLQ
6758&785(2),1',$¶6),1$1&,$/6(59,&(6,1'8675<
7KH 5%, LV WKH FHQWUDO UHJXODWRU\ DQG VXSHUYLVRU\ DXWKRULW\ IRU WKH ,QGLDQ ILQDQFLDO V\VWHP 7KH %RDUG IRU
)LQDQFLDO 6XSHUYLVLRQ ³%)6´ LV WKH SULQFLSDO UHJXODWRU\ HQWLW\ UHVSRQVLEOH IRU HQIRUFLQJ 5%,¶V VWDWXWRU\
UHJXODWRU\DQGVXSHUYLVRU\IXQFWLRQVWKH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD³6(%,´UHJXODWHVWKHFDSLWDO
PDUNHWVVHFWRULQFOXGLQJPXWXDOIXQGVDQGWKH,QVXUDQFH5HJXODWRU\DQG'HYHORSPHQW$VVRFLDWLRQ³,5'$´
UHJXODWHVWKHLQVXUDQFHVHFWRU
$YDULHW\RIILQDQFLDOLQVWLWXWLRQVDQGLQWHUPHGLDULHVSDUWLFLSDWHLQ,QGLD¶VILQDQFLDOVHUYLFHVLQGXVWU\LQFOXGLQJ
&RPPHUFLDOEDQNV1%)&VVSHFLDOL]HGILQDQFLDOLQVWLWXWLRQVVXFKDV
WKH1DWLRQDO%DQNIRU$JULFXOWXUHDQG5XUDO'HYHORSPHQW
WKH([SRUW,PSRUW%DQNRI,QGLD
WKH6PDOO,QGXVWULHV'HYHORSPHQW%DQNRI,QGLDDQGWKH7RXULVP)LQDQFH&RUSRUDWLRQRI,QGLD
VHFXULWLHVEURNHUV
LQYHVWPHQWEDQNV
LQVXUDQFHFRPSDQLHV
PXWXDOIXQGVDQG
YHQWXUHFDSLWDOIXQGV
121%$1.,1*),1$1&(&203$1,(6
2YHUYLHZ
1%)&VDUHDJURXSRILQVWLWXWLRQVZKLFKSHUIRUPWKHIXQFWLRQRIILQDQFLDOLQWHUPHGLDWLRQLQDZLGHYDULHW\RI
ZD\VIRUH[DPSOHE\DFFHSWLQJGHSRVLWVPDNLQJORDQVDQGDGYDQFHVDQGILQDQFLQJOHDVLQJDQGKLUHSXUFKDVH
WUDQVDFWLRQV1%)&VW\SLFDOO\DGYDQFHORDQVDQGUHODWHGILQDQFLDOSURGXFWVWRZKROHVDOHUVUHWDLOWUDGHUVVPDOO
VFDOHLQGXVWULHVDQGWKHVHOIHPSOR\HG3XUVXDQWWRWKH5HVHUYH%DQNRI,QGLD$FW³5%,$FW´6HFWLRQ
,I1%)&VLQFOXGH
DILQDQFLDOLQVWLWXWLRQZKLFKLVDFRPSDQ\
D QRQEDQNLQJ LQVWLWXWLRQ ZKLFK LV D FRPSDQ\ DQG ZKLFK KDV DV LWV SULQFLSDO EXVLQHVV WKH UHFHLYLQJ RI
GHSRVLWVXQGHUDQ\VFKHPHRUDUUDQJHPHQWRULQDQ\RWKHUPDQQHURUOHQGLQJLQDQ\PDQQHU
VXFK RWKHU QRQEDQNLQJ LQVWLWXWLRQ RU FODVV RI VXFK LQVWLWXWLRQV DV WKH 5%, PD\ ZLWK WKH SUHYLRXV
DSSURYDORIWKH&HQWUDO*RYHUQPHQWDQGE\QRWLILFDWLRQLQWKH2IILFLDO*D]HWWHVSHFLI\
³)LQDQFLDOLQVWLWXWLRQ´DQG³QRQEDQNLQJLQVWLWXWLRQ´KDYHEHHQGHILQHGXQGHUVHFWLRQV,FDQG,HRI
WKH5%,$FWUHVSHFWLYHO\
1%)&V W\SLFDOO\ XQGHUWDNH IXQGEDVHG DFWLYLWLHV ZKLFK LQYROYH SURYLGLQJ IXQGV WR FXVWRPHUV DQG IHHEDVHG
DFWLYLWLHVZKLFKLQYROYHSURYLGLQJVHUYLFHVWRFXVWRPHUV)XQGEDVHGDFWLYLWLHVLQFOXGHHTXLSPHQWOHDVLQJKLUH
SXUFKDVH ELOO GLVFRXQWLQJ ORDQV DQG LQYHVWPHQWV YHQWXUH FDSLWDO IDFWRULQJ HTXLW\ SDUWLFLSDWLRQ VKRUWWHUP
ORDQV LQWHUFRUSRUDWH ORDQV DQG PLFURILQDQFH )HHEDVHG DFWLYLWLHV LQFOXGH LQYHVWPHQW EDQNLQJ SRUWIROLR
PDQDJHPHQWZHDOWKPDQDJHPHQWORDQDQGOHDVHV\QGLFDWLRQDGYLVRU\VHUYLFHVDQGGLVWULEXWLRQ
7KH WRWDOQXPEHURI 1%)&V UHJLVWHUHG ZLWKWKH5%,FRQVLVWLQJRI1%)&V'DQG1%)&V1'GHFOLQHG IURP
DWWKHHQGRI0DUFKWRDWWKHHQGRI0DUFK7KHQXPEHURI1%)&V'GHFOLQHGIURP
WRGXULQJWKHVDPHSHULRGPDLQO\GXHWRWKHH[LWRIPDQ\1%)&V'IURPGHSRVLWWDNLQJDFWLYLW\
6RXUFHKWWSZZZUELRUJLQVFULSWV3XEOLFDWLRQV9LHZDVS["LG &DFFHVVHGRQ2FWREHU
7\SHVRI1%)&V
1%)&VDUHFODVVLILHGLQWRWKHIROORZLQJFDWHJRULHVE\WKH5%,
L
DVVHW ILQDQFH FRPSDQLHV ± 1%)&V ZKRVH SULQFLSDO EXVLQHVV LV WKDW RI ILQDQFLQJ WKH SK\VLFDO DVVHWV
ZKLFKVXSSRUWYDULRXVSURGXFWLYHDQGHFRQRPLFDVVHWVLQ,QGLD 3ULQFLSDOEXVLQHVVIRUWKLVSXUSRVH
PHDQV WKDW WKH DJJUHJDWH RI ILQDQFLQJ UHDOSK\VLFDO DVVHWV VXSSRUWLQJ HFRQRPLF DFWLYLW\ DQG LQFRPH
DULVLQJWKHUHIURPLVQRWOHVVWKDQRIWRWDODVVHWVDQGWRWDOLQFRPHUHVSHFWLYHO\
LL
LQYHVWPHQWFRPSDQLHV±1%)&VZKRVHSULQFLSDOEXVLQHVVLVWKDWRIWKHDFTXLVLWLRQRIVHFXULWLHVDQG
LLL
ORDQ FRPSDQLHV ± 1%)&V ZKRVH SULQFLSDO EXVLQHVV LV WKDW RI SURYLGLQJ ILQDQFH ZKHWKHU E\ PDNLQJ
ORDQVRUDGYDQFHVRURWKHUZLVHIRUDQ\DFWLYLW\RWKHUWKDQLWVRZQEXWGRHVQRWLQFOXGHDQHTXLSPHQW
OHDVLQJFRPSDQ\RUDKLUHSXUFKDVHILQDQFHFRPSDQ\
1%)&VPD\EHIXUWKHUFODVVLILHGLQWRWKRVHDFFHSWLQJGHSRVLWVRUGHSRVLWWDNLQJ1%)&VRUWKRVHQRWDFFHSWLQJ
GHSRVLWVRUQRQGHSRVLWWDNLQJ1%)&V
,QIUDVWUXFWXUH)LQDQFH&RPSDQLHV)ROORZLQJWKH6HFRQG4XDUWHU5HYLHZRIWKH0RQHWDU\3ROLF\IRUWKH<HDU
WKH5%,LQWURGXFHGDIRXUWKFDWHJRU\RI1%)&VNQRZQDV³1%)&,QIUDVWUXFWXUH)LQDQFH&RPSDQLHV´
ZKLFKZHUHGHILQHGDVHQWLWLHVZKLFKKROGDPLQLPXPRIRIWKHLUWRWDODVVHWVIRUWKHSXUSRVHVRIILQDQFLQJ
LQIUDVWUXFWXUHSURMHFWV
&RUH,QYHVWPHQW&RPSDQLHV7KH5%,LQLWVFLUFXODUGDWHG$XJXVWVWDWHGWKDW1%)&VFDUU\LQJRQWKH
EXVLQHVVRIWKHDFTXLVLWLRQRIVKDUHVDQGVHFXULWLHVDQGZKLFKKROGQRWOHVVWKDQRILWVWRWDODVVHWVLQWKH
IRUPRILQYHVWPHQWVLQHTXLW\VKDUHVSUHIHUHQFHVKDUHVGHEWRUORDQVLQJURXSFRPSDQLHVDQGDUHLQFRPSOLDQFH
ZLWK RWKHU FRQGLWLRQV SURYLGHG LQ WKH 5%, FLUFXODU DUH HOLJLEOH WR EH FODVVLILHG DV FRUH LQYHVWPHQW FRPSDQLHV
³&,&´(YHU\&,&WKDWFRPSOLHVZLWKWKHFRQGLWLRQVGHVFULEHGLQWKH5%,FLUFXODUGDWHG$XJXVWLV
HOLJLEOHWRDSSO\WRWKH5%,IRUDQH[HPSWLRQIURPWKHUHTXLUHPHQWVRIPDLQWDLQLQJWKHVWDWXWRU\PLQLPXPQHW
RZQHG IXQG DQG WKH UHTXLUHPHQWV RI WKH 3UXGHQWLDO 1RUPV 'LUHFWLRQV LQFOXGLQJ UHTXLUHPHQWV RI FDSLWDO
DGHTXDF\DQGH[SRVXUHQRUPV
,QIUDVWUXFWXUH'HEW)XQGV±1RQ%DQNLQJ)LQDQFLDO&RPSDQ\7KH)LQDQFH0LQLVWHUDQQRXQFHGLQKLVEXGJHW
VSHHFKIRUWKH\HDUWKHVHWXSRI,QIUDVWUXFWXUH'HEW)XQGV,')V*LYLQJHIIHFWWRWKHVDPHWKH5%,
E\ LWV 3UHVV 5HOHDVH GDWHG 6HSWHPEHU DQG QRWLILFDWLRQ GDWHG 1RYHPEHU KDV VHW RXW WKH
SDUDPHWHUVIRUEDQNVDQG1%)&VWRVHWXS,')VIUDPHZRUNDQGUHJXODWRU\IUDPHZRUNJRYHUQLQJ1%)&,)&V
1RQ %DQNLQJ )LQDQFLDO &RPSDQ\ 0LFUR )LQDQFH ,QVWLWXWLRQV )ROORZLQJ WKH 6HFRQG 4XDUWHU 5HYLHZ RI WKH
0RQHWDU\3ROLF\LQ1RYHPEHU5%,LQWURGXFHGDVHYHQWKQHZFDWHJRU\RI1%)&NQRZQDV1%)&0LFUR
)LQDQFH ,QVWLWXWLRQV 1%)&0),V WKURXJK µ1RQ %DQNLQJ )LQDQFLDO &RPSDQ\ 0LFUR )LQDQFH ,QVWLWXWLRQV¶
1%)&0),V'LUHFWLRQVGDWHG-XO\$Q1%)&0),LVGHILQHGDVDQRQGHSRVLWWDNLQJ1%)&WKDWKDV
PLQLPXPQHWRZQHGIXQGVRI`PLOOLRQDQGKDVQRWOHVVWKDQRILWVQHWDVVHWVLQWKHQDWXUHRI³TXDOLI\LQJ
DVVHWV´
5HJXODWLRQV$IIHFWLQJ1%)&V
1%)&V PXVW DGKHUH WR WKH 3UXGHQWLDO 1RUPV 'LUHFWLRQV ZKLFK DPRQJVW RWKHU UHTXLUHPHQWV SUHVFULEH
JXLGHOLQHV UHJDUGLQJ LQFRPH UHFRJQLWLRQ DVVHW FODVVLILFDWLRQ SURYLVLRQLQJ UHTXLUHPHQWV FRQVWLWXWLRQ RI DXGLW
FRPPLWWHH FDSLWDO DGHTXDF\ UHTXLUHPHQWV FRQFHQWUDWLRQ RI FUHGLWLQYHVWPHQW DQG QRUPV UHODWLQJ WR
LQIUDVWUXFWXUHORDQV1%)&VPXVWDOVRLPSOHPHQWLQWHUQDOSROLFLHVDQGSURFHGXUHVWRGHWHUPLQHLQWHUHVWUDWHVDQG
SURFHVVLQJ DQG RWKHU FKDUJHV DV VHW RXW LQ WKH 5%, FLUFXODU GDWHG 0D\ 1%)&V PXVW DOVR DGRSW DQ
LQWHUHVWUDWHPRGHOIRUUHJXODWLQJWKHLQWHUHVWUDWHVWKH\FKDUJHSXUVXDQWWRWKH0DVWHU&LUFXODURQ)DLU3UDFWLFHV
&RGHGDWHG-XO\LVVXHGE\WKH5%,WRDOO1%)&V
)RUIXUWKHUGHWDLOVVHHWKHVHFWLRQWLWOHG³5HJXODWLRQVDQG3ROLFLHV´RQSDJH
5HJXODWLRQV$IIHFWLQJ'HSRVLWWDNLQJ1%)&V
,Q DGGLWLRQ GHSRVLWWDNLQJ 1%)&V PXVW FRPSO\ ZLWK WKH 1RQ%DQNLQJ )LQDQFLDO &RPSDQLHV $FFHSWDQFH RI
3XEOLF'HSRVLWV5HVHUYH%DQN'LUHFWLRQVDVLVVXHGE\WKH 5%,QRWLILFDWLRQGDWHG-XO\ZKLFK
UHTXLUHDPRQJRWKHUWKLQJVWKDW
L
1%)&V DUH DOORZHG WR DFFHSW RU UHQHZ SXEOLF GHSRVLWV IRU D PLQLPXP SHULRG RI PRQWKV DQG
PD[LPXPSHULRGRIPRQWKV
LL
1%)&VFDQQRWDFFHSWGHSRVLWVUHSD\DEOHRQGHPDQG
LLL
1%)&VFDQQRWRIIHULQWHUHVWUDWHVKLJKHUWKDQWKHFHLOLQJUDWHSUHVFULEHGE\5%,IURPWLPHWRWLPH
LY
1%)&VFDQQRWRIIHUJLIWVLQFHQWLYHVRUDQ\RWKHUDGGLWLRQDOEHQHILWWRWKHGHSRVLWRUV
Y
1%)&VVKRXOGKDYHDPLQLPXPRIDQLQYHVWPHQWJUDGHFUHGLWUDWLQJ
YL
1%)&VGHSRVLWVDUHQRWLQVXUHGDQG
YLL
UHSD\PHQWRIGHSRVLWVE\1%)&VLVQRWJXDUDQWHHGE\5%,
)RUIXUWKHUGHWDLOVVHHWKHVHFWLRQWLWOHG³5HJXODWLRQVDQG3ROLFLHV´RQSDJH
9(+,&/(),1$1&(,1'8675<
$XWRPRWLYH,QGXVWU\2YHUYLHZ
$FFRUGLQJWRWKH$XWRPRWLYH0LVVLRQ3ODQSUHSDUHGE\WKH0LQLVWU\RI+HDY\,QGXVWULHVDQG3XEOLF
(QWHUSULVHV *RYHUQPHQW RI ,QGLD ³$XWRPRWLYH 0LVVLRQ 3ODQ´ ,QGLD LV HPHUJLQJ DV RQH RI WKH ZRUOG¶V
IDVWHVW JURZLQJ SDVVHQJHU FDU PDUNHWV DQG WKH VHFRQG ODUJHVW WZR ZKHHOHU PDQXIDFWXUHU 7KH JURZWK RI WKH
,QGLDQPLGGOHFODVVDORQJZLWKLQFUHDVLQJSXUFKDVLQJSRZHUDQGUREXVWJURZWKLQWKHHFRQRP\LQUHFHQW\HDUV
KDVDWWUDFWHGPDMRUJOREDODXWRPRWLYHPDQXIDFWXUHUVWRWKH,QGLDQPDUNHW6LQFHGHOLFHQVLQJLQ-XO\WKH
,QGLDQ DXWRPRWLYH LQGXVWU\ KDV LQFUHDVHG DW D UDWH RI DSSUR[LPDWHO\ 6RXUFH $XWRPRWLYH 0LVVLRQ 3ODQ
$0LVVLRQIRU'HYHORSPHQWRI,QGLDQ$XWRPRWLYH,QGXVWU\
7KH FKDUW EHORZ LOOXVWUDWHV WKH GRPHVWLF PDUNHW VKDUH EHWZHHQ SDVVHQJHU YHKLFOHV FRPPHUFLDO YHKLFOHV WZR
ZKHHOHUVDQGWKUHHZKHHOHUVIRU
6RXUFH6RFLHW\RI,QGLDQ$XWRPRELOH0DQXIDFWXUHUV
&DUVDQG8WLOLW\9HKLFOHV
7KH QHZ FDU DQG XWLOLW\ YHKLFOHV PDUNHW LV H[SHFWHG WR LQFUHDVH IURP ` ELOOLRQ LQ WR ` ELOOLRQLQ7KHQHZFDUDQGXWLOLW\YHKLFOHILQDQFHPDUNHWLVH[SHFWHGWRLQFUHDVHIURP`ELOOLRQLQ
±WR`ELOOLRQLQ6RXUFH&5,6,/5HVHDUFK
7KHFKDUWEHORZLOOXVWUDWHVWKHJURZWKWUHQGVLQQHZFDUVDQGXWLOLW\YHKLFOHVPDUNHWDQGWKHQHZFDUILQDQFHDQG
XWLOLW\YHKLFOHILQDQFHPDUNHW
7KHFKDUWVEHORZLOOXVWUDWHWKHFDUVILQDQFHYLVjYLVWKHQHZFDUVILQDQFHPDUNHWDQGWKHXWLOLW\YHKLFOHVILQDQFH
YLVjYLVWKHXWLOLW\YHKLFOHVILQDQFHPDUNHW
((VWLPDWHG33URMHFWHG
6RXUFH&5,6,/5HVHDUFK
((VWLPDWHG33URMHFWHG
6RXUFH&5,6,/5HVHDUFK
)LQDQFH3HQHWUDWLRQRI&DUVDQG8WLOLW\9HKLFOHV
5HOLDQFHRQILQDQFHFRQWLQXHVWRUHPDLQKLJKLQWKHFDUVDQGXWLOLW\YHKLFOHVLQGXVWU\DWDERXWLQ
+RZHYHU WKLV QXPEHU LV VWLOO ORZHU WKDQ OHYHOV RI ZLWQHVVHG EHIRUH 2YHU WKH QH[W ILYH \HDUV
ILQDQFH SHQHWUDWLRQ LQ QRQPHWUR PDUNHWV LV H[SHFWHG WR JURZ DW D KHDOWK\ SDFH $YDLODELOLW\ RI FUHGLW
LQIRUPDWLRQZLOODOVRSOD\DYLWDOUROHLQERRVWLQJILQDQFHSHQHWUDWLRQ+RZHYHUE\ILQDQFHSHQHWUDWLRQ
ZLOO FRQWLQXH WR UHPDLQ ORZHU WKDQ SUHFULVLV OHYHOV RI 6RXUFH &5,6,/ 5HSRUW RQ 5HWDLO )LQDQFH ±
$XWR2FWREHU
7KH FKDUW EHORZ GHPRQVWUDWHV WKH FXUUHQW DQG SURMHFWHG WUHQGV RI ILQDQFH SHQHWUDWLRQ LQ WKH FDUV DQG XWLOLW\
YHKLFOHVLQGXVWU\
((VWLPDWHG33URMHFWHG
6RXUFH&5,6,/5HVHDUFK
/79RI&DUVDQG8WLOLW\9HKLFOHV
6LQFHWKHHFRQRPLFVORZGRZQILQDQFHFRPSDQLHVKDYHDGRSWHGPRUHVWULQJHQWXQGHUZULWLQJSUDFWLFHV
DVDUHVXOWRIKLJKGHOLQTXHQF\GHIDXOWOHYHOV7RPLQLPL]HVXFKULVNV/79VKDYHEHHQUHGXFHG%HWZHHQ
DQG /79 UDWLRV IRU FDUV DQG XWLOLW\ YHKLFOHV LV H[SHFWHG WR LQFUHDVH WR DQG UHVSHFWLYHO\
6RXUFH&5,6,/5HSRUWRQ5HWDLO)LQDQFH±$XWR2FWREHU7KHFKDUWEHORZGHPRQVWUDWHVWKHFXUUHQWDQG
SURMHFWHGWUHQGVRI/79VLQWKHFDUVDQGXWLOLW\YHKLFOHVLQGXVWU\
((VWLPDWHG33URMHFWHG
6RXUFH&5,6,/5HVHDUFK
&UHGLWORVVHVDQGSURILWDELOLW\
,Q OLJKW RI LQFUHDVLQJ FRVWV RI IXQGV LQ QHW SURILW PDUJLQV RI FDUV DQG XWLOLW\ YHKLFOHV ILQDQFLHUV
GHFOLQHG ,QWHUHVW UDWHV DUH HVWLPDWHG WR KDYH GHFOLQHG E\ DURXQG ESV LQ +RZHYHU \LHOGVDUH
HVWLPDWHG WR KDYH UHPDLQHGIODW GXULQJ WKH \HDU GHVSLWH LQWHUHVW UDWH FXWGXH WRWKH ULVLQJ SURSRUWLRQ RI
KLJKHU\LHOGDVVHWVLHUXUDODVVHWILQDQFLQJDQGXWLOLW\YHKLFOHILQDQFLQJ+RZHYHUULVLQJFRVWRIIXQGVSXVKHG
GRZQVSUHDGVE\aESV
)XUWKHULQFUHDVHLQFUHGLWFRVWVFRXSOHGZLWKFRQWUDFWLRQLQJURVVVSUHDGVFDXVHG130VWRVKULQNE\aESV,Q
ZHH[SHFW\LHOGVWRLQFUHDVHLQOLQHZLWKDQH[SHFWHGLQFUHDVH LQFRVWRIIXQGV+RZHYHU130VDUH
H[SHFWHGWRGHFOLQHGXHWRLPSDFWRIHFRQRPLFVORZGRZQRQFUHGLWFRVWV6RXUFH&5,6,/5HVHDUFK
7KHWDEOHEHORZGHPRQVWUDWHVSURILWDELOLW\WUHQGVRIFDUVDQGXWLOLW\YHKLFOHILQDQFLHUV
((VWLPDWHG33URMHFWHG
3URILWDELOLW\EDVHGRQERRN
6RXUFH&5,6,/5HVHDUFK
&RPPHUFLDO9HKLFOHV
&RPPHUFLDO YHKLFOH &9 ORDQ GLVEXUVHPHQWV DUH HVWLPDWHG WR KDYH ULVHQ E\ LQ OHG E\ DURXQG
JURZWKLQXQGHUO\LQJGRPHVWLFYHKLFOHVDOHVYROXPHV,QGRPHVWLF&9VDOHVIHOOE\RZLQJWR
ZHDN HFRQRPLF JURZWK $PRQJ &9 VHJPHQWV VDOHV RI PHGLXP DQG KHDY\ FRPPHUFLDO YHKLFOHV 0+&9V
GHFOLQHG VLJQLILFDQWO\ E\ DQG VDOHV RI OLJKW FRPPHUFLDO YHKLFOHV /&9V JUHZ DW D KHDOWK\ UDWH RI :HDNGRPHVWLFVDOHVFRXSOHGZLWKDVKLIWLQPL[WRZDUGVSURGXFWVRIORZHUWLFNHWVL]HKDGDVL]HDEOHLPSDFWRQ
GLVEXUVHPHQWV 7KXV &9 GLVEXUVHPHQWV DUH HVWLPDWHG WR KDYH GHFOLQHG E\ LQ 6RXUFH &5,6,/
5HVHDUFK
,Q ZH H[SHFW &9 VDOHV WR UHPDLQ VXEGXHG RQ DFFRXQW RI VORZ JURZWK LQ IUHLJKW DYDLODELOLW\ ORZHU
XWLOLVDWLRQRIWKHH[LVWLQJ&9IOHHWDQGZHDNWUDQVSRUWHUVHQWLPHQWRZLQJWRWKHLUFRQVWUDLQHGILQDQFHV+HQFH
&9VDOHVDUHH[SHFWHGWRGHFOLQHE\DERXW\R\FDXVLQJGLVEXUVHPHQWVWRIDOOE\\R\
&RPPHUFLDO9HKLFOH/RDQ'LVEXUVHPHQWV
,Q WKH ODVW ILYH \HDUV WLOO GLVEXUVHPHQWV JUHZ E\ DURXQG LQ OLQH ZLWK JURZWK LQ &9 VDOHV /&9
GLVEXUVHPHQWVJUHZIDVWHUWKDQ0+&9GLVEXUVHPHQWVRQDFFRXQWRIIDVWHUJURZWKLQ/&9VDOHV
,PSURYHG SOD\HU IRFXV DQG WKH UHVXOWDQW JURZWK LQ ILQDQFH SHQHWUDWLRQ OHG WR &$*5 JURZWK LQ /&9
GLVEXUVHPHQWV RYHU D ILYH\HDU SHULRG IURP WR 2Q WKH RWKHU KDQG 0+&9 GLVEXUVHPHQWV
JUHZDWDURXQG&$*5LQOLQHZLWKDULVHLQWKH&9PDUNHWVL]HVDOHVLQYDOXHWHUPV+RZHYHUILQDQFH
SHQHWUDWLRQ LQ WKLV VHJPHQW GHFOLQHG PDUJLQDOO\ GXULQJ WKH FULVHV DV ILQDQFLHUV H[HUFLVHG JUHDWHU
FDXWLRQ
&5,6,/5HVHDUFKH[SHFWVWKH&9ILQDQFHLQGXVWU\WRJURZE\WRDERXW`ELOOLRQLQOHGE\
JURZWK LQ GRPHVWLF &9 VDOHV PDUJLQDO LQFUHDVH LQ ILQDQFH SHQHWUDWLRQ DQG LQFUHDVH LQ /79 UDWLRV 6RXUFH
&5,6,/5HVHDUFK
7KH FKDUW EHORZ GHPRQVWUDWHV WKH FXUUHQW DQG SURMHFWHG WUHQGV RI JURZWK LQ GLVEXUVHPHQWV IRU FRPPHUFLDO
YHKLFOHV
((VWLPDWHG33URMHFWHG
6RXUFH&5,6,/5HVHDUFK
7KHFKDUWEHORZGHPRQVWUDWHVWKHFXUUHQWDQGSURMHFWHGWUHQGVRIJURZWKLQGLVEXUVHPHQWVIRU/&9V
((VWLPDWHG33URMHFWHG
6RXUFH&5,6,/5HVHDUFK
7KHFKDUWEHORZGHPRQVWUDWHVWKHFXUUHQWDQGSURMHFWHGWUHQGVRIJURZWKLQGLVEXUVHPHQWVIRU0+&9V
((VWLPDWHG33URMHFWHG
6RXUFH&5,6,/5HVHDUFK&5,6,/5HSRUWRQ5HWDLO)LQDQFH±$XWR2FWREHU
/79IRUFRPPHUFLDOYHKLFOHV
*LYHQWKHZHDNHFRQRPLFVFHQDULRDQGLQFUHDVLQJSUHVVXUHRQWUDQVSRUWHUPDUJLQV0+&9ILQDQFLHUVORZHUHG
WKHLUORDQWR YDOXH /79V UDWLRVLQ+RZHYHUFRPSHWLWLRQLQ /&9 ILQDQFLQJ IRUFHGSOD\HUVWRRIIHU
PDUJLQDOO\KLJKHU/79UDWLRVZLWKWKHH[FHSWLRQRIIHZSOD\HUVZKHUH/79VZHUHUDLVHGVLJQLILFDQWO\WRSXVK
VDOHV
,QZHH[SHFW/79UDWLRVWRGHFOLQHGXHWRVWULQJHQWFUHGLWDSSUDLVDOPHFKDQLVPVJLYHQFRQFHUQVRYHU
GHWHULRUDWLRQLQDVVHWTXDOLW\DPLGDZHDNHFRQRPLFJURZWKVFHQDULR)XUWKHUGHFOLQHLQUHVDOHYDOXHVZLOODOVR
FDXVH /79V WR GHFOLQH PDUJLQDOO\ HVSHFLDOO\ LQ WKH 0+&9 VHJPHQW 2YHU WKH QH[W ILYH \HDUV WKRXJK ZH
H[SHFW/79VWRLQFUHDVHWRIURPDURXQGLQ6RXUFH&5,6,/5HVHDUFK
7KH FKDUW EHORZ GHPRQVWUDWHV WKH FXUUHQW DQG SURMHFWHG WUHQGV RI /79V LQ WKH FRPPHUFLDO YHKLFOH ILQDQFH
LQGXVWU\
((VWLPDWHG33URMHFWHG
6RXUFH&5,6,/5HVHDUFK
)LQDQFHSHQHWUDWLRQ
7KH&9ILQDQFHLQGXVWU\LVDOUHDG\KLJKO\SHQHWUDWHG7\SLFDOO\PRUHWKDQRIWKHYHKLFOHVSXUFKDVHGDUH
IXQGHGH[WHUQDOO\$OWKRXJKILQDQFHSHQHWUDWLRQKDGGHFUHDVHGPDUJLQDOO\LQSHQHWUDWLRQUHFRYHUHGWR
QRUPDOOHYHOVLQ)LQDQFHSHQHWUDWLRQLVH[SHFWHGWRUHPDLQKLJKDWDERXWRYHUWKHQH[WILYH
\HDUV6RXUFH&5,6,/5HVHDUFK
&UHGLWORVVHVDQGSURILWDELOLW\
,WLVHVWLPDWHGWKDWQHWPDUJLQVRIFRPPHUFLDOYHKLFOHILQDQFLHUVKDVGHFOLQHGLQ<LHOGVDUHHVWLPDWHG
WRKDYHULVHQGHVSLWHPDUJLQDOLQWHUHVWUDWHFXWVDV/&9VRQZKLFKLQWHUHVWUDWHVDUHKLJKHUE\DERXW
EDVLVSRLQWVJDLQHGVKDUHLQVDOHV+RZHYHUFRVWRIIXQGVLQFUHDVHGQDUURZLQJJURVVVSUHDGVRIILQDQFLHUVE\
ESV )XUWKHU DV WKH HFRQRP\ UHPDLQHG ZHDN WUDQVSRUWHUV ZHUH XQDEOH WR IXOO\ SDVV RQ ULVLQJ IXHO DQG RWKHU
FRVWVWRFXVWRPHUVDQGWKHUHVXOWDQWLPSDFWRQPDUJLQVDOVRWUDQVODWHGLQWRULVLQJGHOLQTXHQFLHV&RQVHTXHQWO\
&9ILQDQFLHUV
FUHGLWORVVHVDUHHVWLPDWHGWRKDYHULVHQE\ ESVGXULQJWKH \HDU)XUWKHURSHUDWLQJH[SHQVHV
DUHDOVRHVWLPDWHGWRKDYHULVHQPDUJLQDOO\7KHVHIDFWRUVWRJHWKHUFDXVHGQHWSURILWPDUJLQV130VWRGHFOLQH
E\ESVGXULQJWKH\HDU
,QZHH[SHFW5%,
VPHDVXUHVWRFRQWDLQUXSHHGHSUHFLDWLRQDQGLQIODWLRQWRLPSDFWILQDQFLHU
VFRVWRI
IXQGV)XUWKHUVXFKLQFUHDVHLQFRVWZLOOEHSDVVHGRQE\ZD\RIKLJKHULQWHUHVWUDWHVFDXVLQJ\LHOGVWRLQFUHDVH
E\D VLPLODUPDJQLWXGHLQWXUQOHDGLQJWRJURVVVSUHDGVUHPDLQLQJIODW+RZHYHUFUHGLWFRVWV ZLOOFRQWLQXHWR
ULVH RZLQJ WRZRUVHQLQJ LPSDFW RI WKH RQJRLQJ HFRQRPLF VORZGRZQRQ WUDQVSRUWHUV
FDVK IORZV 5LVLQJ FUHGLW
FRVWVFRXSOHGZLWKPDUJLQDOLQFUHDVHLQRSHUDWLQJH[SHQVHVZLOOLPSDFW130VGXULQJWKH\HDU
7KHWDEOHEHORZGHPRQVWUDWHVSURILWDELOLW\WUHQGVRIFRPPHUFLDOYHKLFOHILQDQFLHUV
((VWLPDWHG33URMHFWHG
3URILWDELOLW\EDVHGRQERRN
6RXUFH&5,6,/5HVHDUFK
7ZR:KHHOHUV)LQDQFH,QGXVWU\
&5,6,/5HVHDUFKHVWLPDWHVWZRZKHHOHUILQDQFHGLVEXUVHPHQWVWRKDYHJURZQE\LQKLJKHUWKDQD
LQFUHDVH LQ XQGHUO\LQJ WZRZKHHOHU VDOHV YDOXH DLGHG E\ D VWHDG\ ULVH LQ ILQDQFH SHQHWUDWLRQ )LQDQFH
SHQHWUDWLRQGURSSHGVLJQLILFDQWO\LQGXHWRULVLQJGHOLQTXHQFLHV7KLVIRUFHGPDQ\SOD\HUVWRH[LWWKH
EXVLQHVV
+RZHYHU VWULQJHQW FUHGLW QRUPV DQG WKH DYDLODELOLW\ RI FUHGLWLQIRUPDWLRQ WKURXJK &,%,/ KDV KHOSHG SOD\HUV
H[SDQGWKHLUFXVWRPHUEDVH$GGLWLRQDOO\WKHHQWU\RIQRQEDQNLQJILQDQFHFRUSRUDWLRQV1%)&VOLNH+LQGXMD
)LQDQFH7DWD&DSWLDODQG+HUR)LQDQFHZLOOERRVWILQDQFHSHQHWUDWLRQ
7ZRZKHHOHU YROXPH JURZWK UHPDLQHG VXEGXHG DW LQ ,Q WZRZKHHOHU VDOHV JURZWK LV
H[SHFWHG WR UHFRYHU WR GULYHQ E\ LPSURYHG LQFRPH SURVSHFWV ORZHU IXHO SULFHV DQG IDOOLQJ LQIODWLRQ
+LJKHU IDUP LQFRPHV ZLOO ERRVW VDOHV RI PRWRUF\FOHV DQG PRSHGV DQG UXUDO DUHDV ZLOO DFFRXQW IRU EXON RI
LQFUHPHQWDOVDOHV6FRRWHUVDOHVRQWKHRWKHUKDQGZLOOJURZE\ULGLQJRQDQLPSURYHPHQWLQXUEDQ
LQFRPHVHQWLPHQWQHZPRGHOODXQFKHVDQGDQH[SDQVLRQLQSOD\HUV
GLVWULEXWLRQQHWZRUN,QWHUPVRIVL]HWKH
LQGXVWU\LVH[SHFWHGWRJURZE\
,QOLQHZLWKWKHVWHDG\ULVHLQILQDQFHSHQHWUDWLRQZHH[SHFWGLVEXUVHPHQWVIRUWZRZKHHOHUVWRJURZE\
GXULQJWKH\HDU6RXUFH&5,6,/5HVHDUFK
7ZRZKHHOHUILQDQFLQJGLVEXUVHPHQWV
2YHUWRKLJKGHOLQTXHQFLHVDQGFRQVHTXHQWH[LWVE\SOD\HUVKLWGLVEXUVHPHQWJURZWK)LQDQFH
SHQHWUDWLRQDQGORDQWRYDOXH/79UDWLRWRRGURSSHGVLJQLILFDQWO\+HQFHGLVEXUVHPHQWVDUHHVWLPDWHGWRKDYH
GHFOLQHGDWD&$*5RYHUWKHODVWILYH\HDUV+RZHYHUOHGE\DJURZWKRILQYDOXHWHUPVLQWZR
ZKHHOHU VDOHV DQG LQFUHDVH RI DERXW ESV LQ ILQDQFH SHQHWUDWLRQ ZH H[SHFW WZRZKHHOHU GLVEXUVHPHQWV WR
JURZDWD&$*5RIRYHUWR6RXUFH&5,6,/5HVHDUFK
7KHFKDUWEHORZGHPRQVWUDWHVWKHHVWLPDWHGJURZWKLQWZRZKHHOHUGLVEXUVHPHQWV
((VWLPDWHG33URMHFWHG
6RXUFH&5,6,/5HVHDUFK
)LQDQFHSHQHWUDWLRQRIWZRZKHHOHUYHKLFOHV
$IWHUIDOOLQJWROHVVWKDQLQIURPOHYHOVRIEHIRUHILQDQFHSHQHWUDWLRQKDVVWDUWHG
LQFUHDVLQJVORZO\:HH[SHFWWKLVWUHQGWRFRQWLQXHRYHUWKHQH[WILYH\HDUVWRDVWKHPDUNHW
LVH[SHFWHGWRVHHDJJUHVVLYHDFWLRQE\ERWKH[LVWLQJSOD\HUVDVZHOODVQHZHQWUDQWVDLGHGE\LQIRUPDWLRQIURP
FUHGLWEXUHDXV0RUHRYHU ZHH[SHFWILQDQFLHUVWR ZLGHQ WKHLUUHDFKWRWLHUDQGWLHUFLWLHVWRWDSWKHODWHQW
GHPDQGIRUWZRZKHHOHUORDQV6RXUFH&5,6,/5HVHDUFK
7KHILQDQFHSHQHWUDWLRQIRUWKHWZRZKHHOHUILQDQFHPDUNHWIRUWKHQH[WILYH\HDUVLVLOOXVWUDWHGEHORZ
((VWLPDWHG33URMHFWHG
6RXUFH&5,6,/5HVHDUFK
/79VWRLPSURYHRYHUWKHQH[W\HDUV
$IWHUUHGXFLQJVKDUSO\WRVXEOHYHOVLQORDQWRYDOXHUDWLR/79RQWZRZKHHOHUVGLVEXUVHPHQWV
DUHHVWLPDWHGWRKDYHULVHQWRE\/LEHUDOFUHGLWXQGHUZULWLQJQRUPVDGRSWHGE\ILQDQFLHUVLQWKH
SDVW KDG VLJQLILFDQWO\ GHWHULRUDWHG DVVHW TXDOLW\ LQ WKLV VHJPHQW 6XEVHTXHQWO\ EDQNV ILQDQFLHUV KDYH
VWUHQJWKHQHG WKHLU FUHGLW DSSUDLVDO QRUPV DQG DUH QRZ VWULQJHQW LQ FKHFNLQJ WKH FXVWRPHUV
SDVW WUDFN UHFRUG
GRFXPHQWDWLRQUHSD\PHQWFDSDELOLW\HWFEHIRUHVDQFWLRQLQJORDQV
+RZHYHU RYHU WKH ODVW IHZ \HDUV FRPSHWLWLRQ IURP XQRUJDQLVHG ILQDQFLHUV DQG QHZ HQWUDQWV KDV LQWHQVLILHG
([LVWLQJ RUJDQLVHG SOD\HUV ZLOO EH IRUFHG WR RIIHU KLJK /79V WR VWD\ FRPSHWLWLYH +RZHYHU DYDLODELOLW\ RI
FXVWRPHU LQIRUPDWLRQ WKURXJK &,%,/ ZLOO KHOS WKHVH SOD\HUV LGHQWLI\ KLJKULVN ERUURZHUV WKXV HDVLQJ DVVHW
TXDOLW\FRQFHUQVWRVRPHH[WHQW6RXUFH&5,6,/5HVHDUFK
7KHFKDUWEHORZLOOXVWUDWHVWKH/79WUHQGVLQUHODWLRQWRWZRZKHHOHUYHKLFXODUILQDQFH
((VWLPDWHG33URMHFWHG
6RXUFH&5,6,/5HVHDUFK
&UHGLWORVVHVDQGSURILWDELOLW\RIWZRZKHHOHUILQDQFH
,Q JURVV VSUHDGV RI WZRZKHHOHU ILQDQFLHUV DUH HVWLPDWHG WR KDYH FRQWUDFWHG RQ DFFRXQW RI RQO\
PDUJLQDOLQFUHDVH LQ \LHOGV GHVSLWH VKDUS LQFUHDVH LQ FRVW RI IXQGV +RZHYHU FUHGLW ORVVHV DQG RSHUDWLQJ
H[SHQVHVDUHHVWLPDWHGWRKDYHUHPDLQHGIODW+HQFHQHWVSUHDGVVKUDQNE\aESVGXULQJWKH\HDULQOLQHZLWK
WKHFRQWUDFWLRQLQJURVVVSUHDGV
,QLQOLQHZLWKULVLQJLQWHUHVWUDWHVZHH[SHFW\LHOGVWRLQFUHDVHPDUJLQDOO\$OVRPHDVXUHVWDNHQE\
5%, WR SUHYHQW UXSHH GHSUHFLDWLRQ DQG PDQDJH LQIODWLRQ ZLOO FDXVH FRVW RI IXQGV WR HVFDODWH GXULQJ WKH \HDU
)XUWKHU ZH H[SHFW SURORQJHG ZHDNQHVV LQ WKH HFRQRP\ WR OHDG WR KLJKHU FUHGLW DQG RSHUDWLQJ FRVWV /HG E\
WKHVHIDFWRUVQHWVSUHDGVDUHH[SHFWHGWRVKULQNIXUWKHULQKRZHYHURQO\E\ESV\R\
7KHWDEOHEHORZLOOXVWUDWHVSURILWDELOLW\WUHQGVIRUWKHWZRZKHHOHUILQDQFLQJLQGXVWU\
((VWLPDWHG33URMHFWHG
6RXUFH&5,6,/5HVHDUFK
060(/2$10$5.(7)251%)&6
060(6HFWRU
2YHUWKHODVWILYHGHFDGHVWKH0LFUR6PDOODQG0HGLXP(QWHUSULVHV060(VVHFWRUKDVHPHUJHGDVDYLEUDQW
DQGG\QDPLFVHFWRURIWKH,QGLDQHFRQRP\060(VSOD\DFUXFLDOUROHLQSURYLGLQJHPSOR\PHQWRSSRUWXQLWLHV
DWFRPSDUDWLYHO\ORZHUFRVWWKDQODUJHLQGXVWULHVDVZHOODVDVVLVWLQJLQLQGXVWULDOL]DWLRQRIUXUDODQGEDFNZDUG
DUHDV WKHUHE\ UHGXFLQJ UHJLRQDO LPEDODQFHV DQG DVVXULQJ PRUH HTXLWDEOH GLVWULEXWLRQ RI QDWLRQDO LQFRPH DQG
ZHDOWK6RXUFH0LQLVWU\RI0LFUR6PDOODQG0HGLXP(QWHUSULVHV$QQXDO5HSRUW
060(VDUHVLJQLILFDQWJURZWKGULYHUVRIWKH,QGLDQHFRQRP\7KH\SURYLGHHPSOR\PHQWWRDSSUR[LPDWHO\
PLOOLRQSHRSOHDFURVVPLOOLRQXQLWVDQGFRQWULEXWHWR%RIWKHPDQXIDFWXULQJRXWSXWDQGWR%RIH[SRUWV
6RXUFH$QDO\VLVRI060(6PDOO/RDQ&UHGLW0DUNHWIRU1%)&VLQ,QGLD)URVW6XOOLYDQ -XQH7KH
FKDUWEHORZLOOXVWUDWHVWKHWRWDOZRUNLQJHQWHUSULVHHPSOR\PHQWPDUNHWYDOXHRIIL[HGDVVHWVDQGJURVVRXWSXW
IRU060(VEHWZHHQDQG
6
QR
<HDU
7RWDO:RUNLQJ
(QWHUSULVH
``PLOOLRQV
(PSOR\PHQW
`` PLOOLRQV
0DUNHW9DOXHRI
)L[HG$VVHWV
``ELOOLRQV
3URMHFWHG
6RXUFH0LQLVWU\RI0LFUR6PDOODQG0HGLXP(QWHUSULVHV$QQXDO5HSRUW
*URVV2XWSXW
`ELOOLRQV
7KHWRWDOHPSOR\PHQWIURPWKH060(VHFWRULQ,QGLDZDVPLOOLRQLQ,QWKH060(
VHFWRULVSURMHFWHGWRHPSOR\PLOOLRQ7KHFKDUWEHORZLOOXVWUDWHVWKHWRWDOHPSOR\PHQWEHWZHHQ
DQG
33URMHFWHG
6RXUFH0LQLVWU\RI0LFUR6PDOODQG0HGLXP(QWHUSULVHV$QQXDO5HSRUW
&UHGLW*XDUDQWHH)XQG6FKHPH
7KH*RYHUQPHQWRI,QGLDODXQFKHGWKH &UHGLW*XDUDQWHH )XQG 6FKHPH IRU6PDOO,QGXVWULHVQRZUHQDPHGDV
&UHGLW*XDUDQWHH)XQG6FKHPHIRU0LFURDQG6PDOO(QWHUSULVHVLQ$XJXVWZLWKWKHREMHFWLYHRIPDNLQJ
FUHGLW DYDLODEOH WR PLFUR DQG VPDOO HQWHUSULVHV 06( SDUWLFXODUO\ 0LFUR (QWHUSULVHV IRU ORDQV XS WR ` PLOOLRQZLWKRXWFROODWHUDORUWKLUGSDUW\JXDUDQWHHV7KHVFKHPHLVRSHUDWHGE\WKH&UHGLW*XDUDQWHH)XQG7UXVW
IRU0LFURDQG6PDOO(QWHUSULVHVVHWXSMRLQWO\E\WKH*RYHUQPHQWRI,QGLDDQG6,'%,
7KHVFKHPHFRYHUVFROODWHUDOIUHHFUHGLWIDFLOLW\WHUPORDQDQGRUZRUNLQJFDSLWDOH[WHQGHGE\HOLJLEOHPHPEHU
OHQGLQJLQVWLWXWLRQVWRQHZDQGH[LVWLQJPLFURDQGVPDOOHQWHUSULVHVXSWR`PLOOLRQSHUERUURZLQJXQLW7KH
JXDUDQWHHFRYHUSURYLGHGLVXSWR%RIWKHFUHGLWIDFLOLW\XSWR`PLOOLRQZLWKDQLQFUHPHQWDOJXDUDQWHHRI
%RIWKHFUHGLWIDFLOLW\DERYH`PLOOLRQDQGXSWR`PLOOLRQ%IRUORDQVXSWR`PLOOLRQSURYLGHGWR
PLFUR HQWHUSULVHV % IRU 06(V RZQHG RU RSHUDWHGE\ ZRPHQ DQG DOO ORDQV WR WKH 1RUWK (DVWHUQ 5HJLRQ RI
,QGLD
$V RQ 'HFHPEHU WKHUH ZHUH HOLJLEOH OHQGLQJ LQVWLWXWLRQV UHJLVWHUHG DV 0/,V RI WKH 7UXVW
FRPSULVLQJSXEOLFVHFWRUEDQNVSULYDWHVHFWRUEDQNVUHJLRQDOUXUDOEDQNVIRXUIRUHLJQEDQNVDQGHLJKW
RWKHU LQVWLWXWLRQV &XPXODWLYHO\ SURSRVDOV KDYH EHHQ DSSURYHG IRU JXDUDQWHH FRYHU IRU D WRWDO
VDQFWLRQHG ORDQ DPRXQW RI ` PLOOLRQ 6RXUFH 0LQLVWU\ RI 0LFUR 6PDOO DQG 0HGLXP (QWHUSULVHV
$QQXDO5HSRUW
'HVSLWHYDULRXVLQLWLDWLYHVLQWURGXFHGE\WKH*RYHUQPHQWRI,QGLDEDQNVDQGILQDQFLDOLQVWLWXWLRQV060(VIDFH
FHUWDLQFKDOOHQJHV7KHPDMRUFKDOOHQJHVIDFLQJ060(VDUHSUREOHPVUHODWLQJWRPDUNHWLQJFRPSHWLWLRQFRVW
RIORDQVDQGLQDGHTXDWHDFFHVVWRILQDQFHGXHWRODFNRIILQDQFLDOLQIRUPDWLRQDQGQRQIRUPDOEXVLQHVVSUDFWLFHV
6RXUFH0LQLVWU\RI0LFUR6PDOODQG0HGLXP(QWHUSULVHV$QQXDO5HSRUW
5ROHRI1%)&VLQWKH060(ILQDQFHVHFWRU
7KHJURZWKGULYHUVIRU1%)&VHQJDJHGLQ060(ILQDQFHFDQEHVXPPDUL]HGDVIROORZV
)LQDQFHVQLFKHVHJPHQWVXFKDVVHFRQGKDQGRUXVHGPDFKLQHU\ZKLFKDUHJHQHUDOO\QRWIXQGHGE\EDQNV
6ZLIW/RDQ3URFHVVLQJGXHWRPLQLPDOGRFXPHQWDWLRQDQGIOH[LELOLW\RIGLVEXUVHPHQWSURFHVV
6LJQLILFDQW8QWDSSHG0DUNHWDQGWKHODFNRIDGHTXDWHSHQHWUDWLRQE\EDQNV
5HSHDWILQDQFLQJEXVLQHVV RQDFFRXQWRIVWURQJDQGIULHQGO\UHODWLRQVKLSVGHYHORSHGZLWKFOLHQWVRYHUWKH
OHQGLQJSHULRG
6WULFWHYDOXDWLRQSURFHGXUHVFRXSOHGZLWKLQGXVWU\H[SHULHQFHDQGFRQVHUYDWLYHOHQGLQJSUDFWLVHVWKDWKHOS
HQVXUHPLQLPDO13$V
&XVWRPL]HGDQG)OH[LEOH5HSD\PHQW6FKHGXOHVEDVHGRQFXVWRPHUUHTXLUHPHQWDWDORZHULQWHUHVWUDWHWKDQ
LQIRUPDOVRXUFHVDQG
([WHQVLYH1HWZRUNRIEUDQFKHVDQGOHDGVWREHWWHUFXVWRPHUVHUYLFH
6RXUFH$QDO\VLVRI060(6PDOO/RDQ&UHGLW0DUNHWIRU1%)&VLQ,QGLD)URVW6XOOLYDQ-XQH
*2/'/2$1,1'8675<
6L]HDQGH[SHFWHGJURZWKRIWKHJROGORDQVPDUNHW
,QWKHILQDQFLDO\HDUVWRWKH,QGLDQRUJDQL]HGJROGORDQV PDUNHWJUHZDWD&$*5RIWRUHDFKD
PDUNHWVL]HRI`WR`ELOOLRQXSIURP`WR`ELOOLRQ7KLVJURZWKLVFRQVLGHUHGDGHILQLQJ
SHULRGIRUWKHJROGORDQVVHJPHQWDVLWH[SHULHQFHGDFRPSOH[LQWHUSOD\RIDPL[RIPXOWLSOHIDFWRUVUHODWHGWR
GHPDQGVXSSO\DQGUHJXODWLRQVZKLFKKDYHWRVRPHH[WHQWWUDQVIRUPHGWKHJURZWKFRPSHWLWLYHODQGVFDSHDQG
EXVLQHVVG\QDPLFVRIWKHVHJPHQW7KLVWUHQGLVH[SHFWHGWRFRQWLQXH6RXUFH,0DFV*ROG/RDQ5HSRUW
:KLOHWKHLQFUHDVHLQWKHSULFHRIJROGDQGWKHGHPDQGIRUJROGLQ,QGLDUHPDLQWKHNH\JURZWKIDFWRUVDQRWKHU
IDFWRU ZKLFK KDV VSXUUHGJURZWKLVWKH VXFFHVVIXOH[SDQVLRQRI VSHFLDOL]HG JROGORDQV 1%)&V%HWZHHQ
DQGFHUWDLQ1%)&VHPEDUNHGRQODUJHVFDOHGLVWULEXWLRQPDUNHWLQJDQGSURPRWLRQDOFDPSDLJQVDLPHGDW
HQWHULQJWKHQRQWUDGLWLRQDOPDUNHWVRIJROGORDQVEH\RQG6RXWK,QGLD7KHVHFDPSDLJQVHQFRXUDJHFXVWRPHUVWR
PRYHIURPWKHXQRUJDQL]HGVHFWRUVXFKDVPRQH\OHQGHUVDQGORFDOSDZQEURNHUV6RXUFH,0DFV*ROG/RDQ
5HSRUW
*ROGGHPDQG
7KHGHPDQG IRU JROGLVVWURQJLQ,QGLDGHVSLWHD%LQFUHDVH LQ JROGSULFHVLQUXSHHWHUPVRYHUDSHULRGRI
WKUHH\HDUVHQGLQJ'HFHPEHU'HPDQGKDVLQFUHDVHGDWD&$*5RI%IURPWR7KH:RUOG
*ROG &RXQFLO H[SHFWV JROG GHPDQG LQ ,QGLD WR UHDFK D PLQLPXP DQQXDO GHPDQG RI WRQV E\ D
PLQLPXPDQQXDOJURZWKRI%SHU\HDU*ROGGHPDQGLQ,QGLDEHWZHHQDQGLVLOOXVWUDWHGLQWKHFKDUW
EHORZ
6RXUFH,0DFV*ROG/RDQ5HSRUW
/RDQVDJDLQVWJROG
,QGLDLVWKHODUJHVWFRQVXPHUPDUNHWIRUJROGDQGEHWZHHQDQGGHPRQVWUDWHGDVWURQJGHPDQGIRUWKH
PHWDOZLWKD&$*5RI,QGHPDQGGHFUHDVHGWRGXHWRDVLJQLILFDQWLQFUHDVHLQJROGSULFHV
7KHJURZWKLQWKHWRWDOJROGORDQPDUNHWLVHVWLPDWHGDWDSSUR[LPDWHO\`ELOOLRQE\$SSUR[LPDWHO\
RIWKHDGGLWLRQZLOOFRPHRQDFFRXQWRILQFUHDVHGJROGSULFHVRIWKHSRUWIROLRZLOOEHRQDFFRXQWRI
LQFUHDVHGGHPDQGIRUJROGMHZHOOHU\DQGWKHEDODQFHRIZLOOFRPHIURPWKHLQFUHDVHGSHQHWUDWLRQRIJROG
ORDQV
7KHRUJDQL]HGVHFWRULVH[SHFWHGWRFRQVWLWXWHRIWKHJURZWKIRUHFDVWIRUWKHWRWDOJROGORDQVPDUNHWGXULQJ
6RXUFH,0DFV*ROG/RDQ5HSRUW
.H\*URZWK'ULYHUV
,QFUHDVH LQ OHQGHUV¶ LQWHUHVW 7KHUH ZDV D VORZGRZQ LQ FUHGLW RIIWDNH GXH WR ULVLQJ LQWHUHVW UDWHV DQG KLJK
LQIODWLRQLQWKHTXDUWHUHQGHG'HFHPEHU7KHDVVHWTXDOLW\RIWKHEDQNVKDGDOVRVKRZQVLJQVRIVWUHVV
DQG DV D FRQVHTXHQFH UHWDLO OHQGLQJ LQ SDUWLFXODU XQVHFXUHG SHUVRQDO ORDQV VORZHG GRZQ 6HYHUDO EDQNV DQG
1%)&VKDYHUHFRJQL]HGJROGORDQVDVDQDWWUDFWLYHRSSRUWXQLW\
&XVWRPHU$FFHSWDELOLW\RIJROGORDQV2YHUWKHODVWGHFDGHWKHDSSURDFKWRGHEWRIWKHDYHUDJH,QGLDQFRQVXPHU
KDVFKDQJHGVRWKDWWKH\DUHQRWVRDYHUVHWRGHEW7KHFKDQJHLQPLQGVHWLVDOVRUHIOHFWHGLQWKHJURZWKWUHQGVLQ
WKH JROG ORDQV VHJPHQW ZKHUH KLVWRULFDOO\ LQ JHRJUDSKLHV RWKHU WKDQ 6RXWK ,QGLD FXVWRPHUV KDG FXOWXUDO
LQKLELWLRQVWRSOHGJHWKHLUMHZHOOHU\DQGFRQVLGHUHGWKHSOHGJLQJRIJROGDVDODVWUHVRUW7KH GHPDQGIRUJROG
ORDQVDVDSURGXFWKDVH[SHULHQFHGVWURQJJURZWKDVDUHVXOWRIWDUJHWHGSURPRWLRQE\JROGORDQ1%)&V
7KHNH\FXVWRPHUEDVHIRUJROGORDQVLVIDUPHUKRXVHKROGVORZDQGORZHUPLGGOHLQFRPHKRXVHKROGVLQXUEDQ
DUHDV 7KHVH FXVWRPHUV WHQG WR UHVRUW WRSOHGJLQJ JROG WR PHHWXUJHQW EXVLQHVV DQG SHUVRQDO QHHGV 5HFHQWO\
OHQGHUVKDYHZLWQHVVHGEXVLQHVVFXVWRPHUVLQFUHDVLQJO\XVLQJJROGORDQVWRPHHWWKHLUUHJXODUZRUNLQJFDSLWDO
UHTXLUHPHQWV:KLOHWKLVWUHQGLVH[SHFWHGWREURDGHQWKH UHDFKRIJROGORDQVWKHQHZ FXVWRPHUVHJPHQWVDOO
EULQJDQHZVHWRIEXVLQHVVULVNVZKLFKPD\UHTXLUHOHQGHUVWRDGRSWDGLIIHUHQWDSSURDFKWRFUHGLWDSSUDLVDODQG
DVVHVVPHQWWRWKLVVHJPHQWYLVDYLVWKDWWDNHQIRUWUDGLWLRQDOFXVWRPHUV
5HJXODWRU\LQFHQWLYHVKDYHEHHQPRGLILHGEDQNVPLJKWFRQVLGHUHQWHULQJWKHJROGORDQVVHJPHQWGLUHFWO\*ROG
ORDQV IRU DJULFXOWXUDO SXUSRVHV DUH HOLJLEOH DV SULRULW\ VHFWRU OHQGLQJ DQG OHQGHUV FRQVLGHU WKHP PRUH VHFXUH
7KHSUHVFULEHGULVN ZHLJKWRQ JROGORDQVLV QLOIRUFRPPHUFLDO EDQNVWKHUHE\UHGXFLQJWKH DVVRFLDWHGFDSLWDO
FRVW 8QWLO HDUO\ EDQNV WKDW ODFNHG WKH FDSDELOLWLHV WR RSHUDWH LQ WKH VHJPHQW ZHUH SDUWLFLSDWLQJ LQ WKH
PDUNHWWKURXJKELODWHUDOSRUWIROLREX\RXWDJUHHPHQWVZLWK1%)&VDQGRQOHQGLQJWR1%)&VRSHUDWLQJLQWKH
JROGORDQVVHJPHQW ZKLFK ZDVHOLJLEOHWREH FRXQWHGWRZDUGVWKH EDQNVSULRULW\ VHFWRUOHQGLQJWDUJHWV6LQFH
)HEUXDU\JROGORDQSRUWIROLREX\RXWVDQGOHQGLQJWRJROGORDQ1%)&VE\EDQNVDUHQRORQJHUFRQVLGHUHG
XQGHUWKHSULRULW\VHFWRUOHQGLQJWDUJHWV7KLVLVEHFDXVHWKHUHDUHQRVHFXUHPHFKDQLVPVWRDVFHUWDLQWKHHQGXVH
RIWKHORDQVERUURZHGDJDLQVWJROG7KLVFKDQJHZLOOSURPSWVRPHEDQNVWRSDUWLFLSDWHLQWKHJROGORDQVPDUNHW
GLUHFWO\DQGZLOOIXUWKHULQFUHDVHWKHFRPSHWLWLRQLQWKHJROGORDQVHJPHQW6RXUFH,0DFV*ROG/RDQ5HSRUW
6SHFLDOL]HG1%)&V
$ W\SLFDO JROG ORDQ FXVWRPHU H[SHFWV KLJK ORDQWRYDOXH UDWLRV HDV\ DFFHVV ORZ OHYHOV RI GRFXPHQWDWLRQ DQG
IRUPDOLWLHVTXLFNDSSURYDODQGGLVEXUVDORIORDQVQRH[LVWLQJEDQN DFFRXQWUHTXLUHPHQWDQGDWHDPRIH[SHUW
YDOXHUV6SHFLDOL]HG1%)&VZLWKWKHLUORQJ\HDUVRIH[SHULHQFHDQGDVLQJXODUIRFXVRQWKHJROGORDQVVHJPHQW
KDYHGHYHORSHGDGHHSXQGHUVWDQGLQJRIWKHNH\FXVWRPHUVHJPHQWVDQGEXVLQHVVG\QDPLFVDQGKDYHDFTXLUHG
QLFKH FDSDELOLWLHV LQ RUGHU WRFDWHU WR WKH UHTXLUHPHQWV RI WKH WDUJHW FXVWRPHU VHJPHQWV 6RXUFH ,0DFV *ROG
/RDQ5HSRUW
2XWORRNRIWKH*ROG/RDQV0DUNHWLQ,QGLDIRU1%)&V
7KHRYHUDOOJROGORDQVRUJDQL]HGDQGXQRUJDQL]HGPDUNHWLVH[SHFWHGWRJURZ DWDQDYHUDJHUDWHRIEHWZHHQ
DQGEHWZHHQWKHILQDQFLDO\HDUVDQG$QDGGLWLRQRI`ELOOLRQRIJROGORDQVSRUWIROLR
LV H[SHFWHG LQ WKLV SHULRG7KH JURZWK LQ WKH JROG ORDQV PDUNHW LV H[SHFWHG WR EH GULYHQ E\ WKH WULSOH JURZWK
IDFWRUVRIDQQXDOGHPDQGIRUJROGMHZHOOHU\RIDQH[SHFWHGLQFUHDVHLQJROGSULFHVDWDQDQQXDODYHUDJHRI
DQGDQH[SHFWHGLQFUHDVHLQSHQHWUDWLRQRIJROGORDQVIURPDSSUR[LPDWHO\LQWKHILQDQFLDO\HDUWR
RIWKHWRWDOMHZHOOHU\VWRFNLQ,QGLDLQWKHILQDQFLDO\HDU
7KHRUJDQL]HGJROGORDQPDUNHWLVH[SHFWHGWRLQFUHDVHDWDKLJKHUUDWH RIEHWZHHQDQG7KH ORZHU
WKDQ H[SHFWHG JURZWK UDWH FDQ EH DWWULEXWHG WR WKH VWULQJHQW UHJXODWRU\ HQYLURQPHQW IRU 1%)&V ZKLFK LV
H[SHFWHGWROHDGWR
$ UHGXFWLRQ LQ WKH YDOXH RI ORDQV RIIHUHG RQ WKH VDPH TXDQWLW\ RI JROG SOHGJHG DW KLVWRULFDO OHYHOV 7KH
DYHUDJH/79IRUWKHVHFWRULVH[SHFWHGWRGHFUHDVHIURPLQWRDQG
$UHGXFWLRQLQWKHSDFHRIH[SDQVLRQRI*ROG/RDQV1%)&VRYHUWKHQH[WRQHWRWZR\HDUVDQGLQWXUQD
VORZHUUDWHRISHQHWUDWLRQRIJROGORDQVDV1%)&VDUHH[SHFWHGWRIRFXVDSDUWRIWKHLUUHVRXUFHVWRRUJDQL]H
WKHPVHOYHVLQUHVSHFWRIWKHWLJKWHUUHJXODWRU\HQYLURQPHQW7KHLPSDFWRIWKHVORZGRZQLVH[SHFWHGWREH
SDUWO\FRPSHQVDWHGE\DQDQWLFLSDWHGLQFUHDVHLQWKHSUHVHQFHRIWKHEDQNVLQWKHVHFWRU
6RXUFH,0DFV*ROG/RDQ5HSRUW
0DUNHW6KDUHRIWKH*ROG/RDQV6HJPHQW
7KHFKDUWEHORZLOOXVWUDWHVWKHSHUFHQWDJHRIPDUNHWVKDUHIRUJROGORDQVLQ,QGLDIRUWKHILQDQFLDO\HDUVWR
6RXUFH,0DFV*ROG/RDQ5HSRUW
7KH,QGLDQ+RXVLQJ)LQDQFH0DUNHW
7KH ,QGLDQ KRXVLQJ ILQDQFH PDUNHW LV FKDUDFWHUL]HG E\ DQ DFWLYH SULPDU\ PRUWJDJH PDUNHW 7KH VHFRQGDU\
PDUNHW LV VWLOO HYROYLQJ +RXVLQJ ORDQV DV D SHUFHQWDJH RI *'3 KDYH UHPDLQHG DW DSSUR[LPDWHO\ VLJQLILFDQWO\ORZHUWKDQWKH OHYHOVDFKLHYHGLQ PRVWGHYHORSHGFRXQWULHV7KLVLOOXVWUDWHVWKHRSSRUWXQLWLHV IRU
IXUWKHU SHQHWUDWLRQ RI WKLV PDUNHW 7KH KRXVLQJ ILQDQFH LQGXVWU\ LQ ,QGLD LV JURZLQJ UDSLGO\ 7KH VHFWRU LV
DWWUDFWLQJDUDQJHRIFXVWRPHUVIURPLQGLYLGXDOVWRFRUSRUDWLRQVEHFDXVHRIWKHLQWHQWLRQRIWKHEDQNLQJVHFWRU
DQGWKHHPHUJHQFHRIPRUHVSHFLDOL]HGILQDQFLDOLQVWLWXWLRQV$VRI-XQHWKHUHZHUHKRXVLQJILQDQFH
FRPSDQLHVUHJLVWHUHGZLWKWKH1DWLRQDO+RXVLQJ%DQN
$FFRUGLQJWR,&5$¶VHVWLPDWHVWKHWRWDOKRXVLQJFUHGLWRXWVWDQGLQJLQ,QGLDDVRQ0DUFKZDVRYHU `
ELOOLRQ FRPSDUHG WR ` ELOOLRQ DV RQ 0DUFK VKRZLQJ JURZWK RI 7KH KRXVLQJ ORDQ
SRUWIROLRVRI+)&VDVDZKROHUHSRUWHGDJURZWKRIGXULQJ7KLVJURZWKLVKLJKHUWKDQWKH
LQFUHDVHUHSRUWHGE\VFKHGXOHGFRPPHUFLDOEDQNV6&%V7KHVKDUHRI+)&VLQWKHPRUWJDJHPDUNHWKDVEHHQ
JURZLQJ+)&VPD\EHDEOHWRPDLQWDLQWKHLUPDUNHWVKDUHGXHWRWKHLUIRFXVHGDSSURDFKWDUJHWLQJRIVSHFLDO
FXVWRPHUVHJPHQWVUHODWLYHO\VXSHULRUFXVWRPHUVHUYLFHDQGVLJQLILFDQWJURZWKSODQVLQWKHFDVHRIVRPHRIWKH
QHZ+)&V6RXUFH,QGXVWU\2XWORRNDQG3HUIRUPDQFH5HYLHZRI+RXVLQJ)LQDQFH&RPSDQLHVDQGWKH,QGLDQ
0RUWJDJH)LQDQFH0DUNHWIRU
7KH*RYHUQPHQWRI,QGLD5%,DQGWKH1DWLRQDO+RXVLQJ%DQNKDYHPDGHWKHKRXVLQJILQDQFHVHFWRUDSULRULW\
DQGVXSSRUWWKHVHFWRUWKURXJKILVFDODQGUHJXODWRU\PHDVXUHV7KHJURZLQJPLGGOHFODVVLQFUHDVLQJSXUFKDVLQJ
SRZHUDQGFKDQJLQJGHPRJUDSKLFVWKHLQFUHDVLQJQXPEHURIQXFOHDUIDPLOLHVDQGDORZGHOLQTXHQF\UDWHKDYH
UHVXOWHGLQDORZQXPEHURIQRQSHUIRUPLQJDVVHWVLQFRQWUDVWWRRWKHUVHFWRUV7KLVKDVDOORZHGWKHVHFWRUWR
JURZDWD IDVWHUSDFHDQGDWWUDFW PDQ\LQVWLWXWLRQDOFRPSDQLHVUHSUHVHQWLQJ KLJKYROXPH 6RXUFH5HSRUWRQ
7UHQGDQG3URJUHVVRI+RXVLQJLQ,QGLD
OUR BUSINESS
2YHUYLHZ
:H DUH D GHSRVLWWDNLQJ 1%)& ZLWK PXOWLSOH SURGXFW OLQHV LQFOXGLQJ ORDQV WR WKH VPDOO HQWHUSULVH ILQDQFH
VHJPHQW ORDQV DJDLQVW JROG ILQDQFLQJ IRU WZR ZKHHOHUV DSSOLDQFHV DQG RWKHU FRPPHUFLDO JRRGV UHIHUUHG WR
KHUHLQDV³3URGXFW)LQDQFH´SUHRZQHGDQGQHZYHKLFOHORDQVDQGSHUVRQDOORDQV:HDUHWKHPDUNHWOHDGHU
LQ WKH VPDOO ORDQ VHJPHQW ZLWK DQ HVWLPDWHG PDUNHW VKDUH RI LQ ILVFDO 6RXUFH $QDO\VLV RI WKH
060( 6PDOO /RDQ &UHGLW 0DUNHW IRU 1%)&V LQ ,QGLD -XQH E\ )URVW 6XOOLYDQ :H DUH SDUW RI WKH
6KULUDP*URXSRIFRPSDQLHVWKH³6KULUDP*URXS´DILQDQFLDOVHUYLFHVFRQJORPHUDWHLQ,QGLD
:H EHOLHYH ZH DUH ,QGLD¶VSUHPLHU ILQDQFLDOVHUYLFHVFRPSDQ\ VSHFLDOL]LQJLQVPDOOHQWHUSULVH ILQDQFH ZKLFK
DFFRXQWHG IRU DQG RI RXU DVVHWV XQGHU PDQDJHPHQW IRU WKH ILQDQFLDO \HDUV
DQG VL[ PRQWKV HQGHG 6HSWHPEHU UHVSHFWLYHO\ 6LQFH FRPPHQFLQJ RSHUDWLRQV LQ
ZHKDYHHVWDEOLVKHGDSDQ,QGLDQSUHVHQFHWKURXJKEXVLQHVVRXWOHWVDVRI6HSWHPEHU:H
FDWHUWRWKHILQDQFLQJQHHGVRIRXUVPDOOHQWHUSULVHVDQGUHWDLOFXVWRPHUVZKLFKFRQVWLWXWHDVLJQLILFDQWSDUWRI
RXUFXVWRPHUEDVH
:H DUH D SDUW RI WKH 6KULUDP *URXS ZKLFK KDV D VWURQJ SUHVHQFH LQ ILQDQFLDO VHUYLFHV LQ ,QGLD LQFOXGLQJ
FRPPHUFLDO YHKLFOH ILQDQFLQJ FRQVXPHU ILQDQFH OLIH DQG JHQHUDO LQVXUDQFH VWRFN EURNLQJ FKLW IXQGV DQG
GLVWULEXWLRQ RI ILQDQFLDO SURGXFWV VXFK DV OLIH DQG JHQHUDO LQVXUDQFH SURGXFWV DQG PXWXDO IXQG SURGXFWV 7KH
6KULUDP *URXS DOVR KDV D JURZLQJ SUHVHQFH LQ RWKHU EXVLQHVVHV VXFK DV SURSHUW\ GHYHORSPHQW HQJLQHHULQJ
SURMHFWV DQG LQIRUPDWLRQ WHFKQRORJ\ 7KH ODUJH FXVWRPHU EDVH DQG ZLGHVSUHDG QHWZRUN RI FHUWDLQ 6KULUDP
*URXS FRPSDQLHV LQFOXGLQJ EXVLQHVVHV RSHUDWLQJ XQGHU WKH 6KULUDP &KLWV EUDQG QDPH 6KULUDP 7UDQVSRUW
)LQDQFH &RPSDQ\ /LPLWHG WKH ODUJHVW DVVHW ILQDQFLQJ FRPSDQ\ LQ WHUPV RI DVVHW XQGHU PDQDJHPHQW WRWDO
LQFRPH DQG SURILW DIWHU WD[ LQ ,QGLD EDVHG RQ WKH ILQDQFLDO SDUDPHWHUV IRU ILVFDO 6RXUFH &RPPHUFLDO
9HKLFOH)LQDQFH$&RPSDUDWLYH 6WXG\-XQHE\'XQ %UDGVWUHHW6KULUDP)RUWXQH 6ROXWLRQV /LPLWHG
DQG 6KULUDP )LQDQFLDO 3URGXFWV 6ROXWLRQV &KHQQDL 3ULYDWH /LPLWHG SUHVHQW XV ZLWK D ODUJH SRRO RI WDUJHW
FXVWRPHUV ZKR ZH EHOLHYH WUXVW WKH 6KULUDP EUDQG QDPH +LVWRULFDOO\ VXEVWDQWLDOO\ RXU HQWLUH VPDOO DQG
PHGLXPHQWHUSULVHVFXVWRPHUEDVHKDVEHHQUHIHUUHGWRXV E\HQWLWLHVRSHUDWLQJXQGHUWKH6KULUDP&KLWVEUDQG
QDPH ZKLFK LQFUHDVHV HIILFLHQF\ DQG LPSURYHV WKH TXDOLW\ RI RXU ORDQ ERRN ,Q DGGLWLRQ ZH EHOLHYH WKDW WKH
JRRGZLOODVVRFLDWHGZLWKWKH6KULUDPEUDQGQDPHDOORZVXVWRDFFHVVIXQGLQJDWDUHODWLYHO\FRPSHWLWLYHFRVW
:H RSHUDWH D µKXEDQG VSRNH¶ EXVLQHVV PRGHO ZKHUH UHVSRQVLELOLWLHV IURP ORDQ RULJLQDWLRQ WR UHFRYHULHV RI
ORDQVDUHYHVWHGLQHDFKRIRXUEXVLQHVVRXWOHWVXQGHUWKHJHQHUDOVXSHUYLVLRQDQGFRQWURORIRXUKHDGRIILFHLQ
&KHQQDL:HHPSOR\GHGLFDWHGLQKRXVHWHDPVZKRDUHORFDOO\GUDZQZLWKLQGHSWKNQRZOHGJHRIFXVWRPHUVIRU
SUHOHQGLQJ ILHOG LQYHVWLJDWLRQ DQG SRVWOHQGLQJ SURFHGXUHV 2XU QHWZRUN RI EXVLQHVV RXWOHWV LV IXOO\
LQWHUFRQQHFWHGDQGHDFKEXVLQHVVRXWOHWLVFRQQHFWHGWRRXUKHDGRIILFHWKURXJKDSURSULHWDU\HQWHUSULVHUHVRXUFH
SODQQLQJ³(53´SODWIRUP
:H KDYH GHPRQVWUDWHG FRQVLVWHQW JURZWK LQ RXU EXVLQHVV DQG SURILWDELOLW\ 2XU WRWDO LQFRPH LQFUHDVHG WR
`ODNKVIRUWKHILQDQFLDO\HDUIURP `ODNKVIRUWKHILQDQFLDO\HDUDWD&$*5
RI2XUQHWSURILWDIWHUWD[LQFUHDVHGWR `ODNKVIRUWKH ILQDQFLDO \HDUIURP `
ODNKVIRUWKHILQDQFLDO\HDUDWD&$*5RI
2XUDVVHWVXQGHUPDQDJHPHQWZHUH `ODNKVDQG `ODNKVDVRI6HSWHPEHUDQG
0DUFK UHVSHFWLYHO\ 2XU FDSLWDO DGHTXDF\ UDWLR DV RI 0DUFK FRPSXWHG RQ WKH EDVLV RI
DSSOLFDEOH 5%, UHTXLUHPHQWV ZDV FRPSDUHG WR WKH 5%, VWLSXODWHG PLQLPXP UHTXLUHPHQW RI 2XU7LHU,FDSLWDODVRI6HSWHPEHUDQG0DUFKZDV`ODNKVDQG`ODNKV
UHVSHFWLYHO\2XUJURVV13$VDVDSHUFHQWDJHRIWRWDOORDQDVVHWVZHUH DQGDVRI6HSWHPEHU
DQG0DUFKUHVSHFWLYHO\2XUQHW13$VDVDSHUFHQWDJHRIQHWORDQDVVHWVZHUHDQG
DVRI6HSWHPEHUDQG0DUFK
2UJDQL]DWLRQDO6WUXFWXUH
2XURUJDQL]DWLRQDOVWUXFWXUHLVDVIROORZV
.H\ILQDQFLDOSDUDPHWHUV
3URYLGHGEHORZLVDVXPPDU\RIRXUNH\ILQDQFLDOSDUDPHWHUVIRUWKHODVWWKUHH)LVFDOV
3DUWLFXODUV
3DLGXSHTXLW\VKDUHFDSLWDO
1HWZRUWK
7RWDO'HEWRIZKLFK
1RQ&XUUHQW0DWXULWLHVRI
/RQJ7HUP%RUURZLQJ
6KRUW7HUP%RUURZLQJ
&XUUHQW0DWXULWLHVRI/RQJ7HUP
%RUURZLQJ
1HW)L[HG$VVHWV
1RQ&XUUHQW$VVHWV1HWRI)L[HG$VVHWV
&DVKDQG%DQN%DODQFHV
&XUUHQW,QYHVWPHQWV
&XUUHQW$VVHWV1HWRI&DVKDQG%DQN%DODQFHV
&XUUHQW,QYHVWPHQWV
&XUUHQW/LDELOLWLHV1HWRI6KRUW7HUP%RUURZLQJV
&XUUHQW0DWXULWLHVRI/RQJ7HUP%RUURZLQJ
,QWHUHVW,QFRPH
,QWHUHVW([SHQVH
3URYLVLRQLQJ:ULWHRIIV
3URILWDIWHUWD[3$7
*URVV13$
1HW13$
7LHU,&DSLWDO$GHTXDF\5DWLR
7LHU,,&DSLWDO$GHTXDF\5DWLR
'HEWHTXLW\UDWLRDVDW6HSWHPEHU
%HIRUHWKH,VVXH
$IWHUWKH,VVXH
6HSWHPEHU
$XGLWHG
)LVFDO
`LQODNK
)LVFDO
)LVFDO
$XGLWHG
$XGLWHG
$XGLWHG
2XU6WUHQJWKV
:HEHOLHYHWKDWWKHIROORZLQJDUHRXUNH\VWUHQJWKV
/HDGLQJSRVLWLRQLQWKHKLJKJURZWKVPDOOHQWHUSULVHILQDQFHVHJPHQW
2XUDVVHWVXQGHUPDQDJHPHQWKDYHJURZQE\D&$*5RIWR`ODNKVDVRI0DUFK
IURP`ODNKVDVRI0DUFK2XUJURZWKKDVEHHQGULYHQE\ORDQVWRVPDOOHQWHUSULVHVDQGWR
XQGHUEDQNHG VHPLXUEDQ DQG UXUDO FXVWRPHUV WR PHHW WKHLU GLYHUVH FUHGLW QHHGV DFURVV LQFRPH JHQHUDWLRQ
FRQVXPSWLRQ DQG EDVLF QHHGV VXFK DV KRXVLQJ :H EHJDQ RIIHULQJ FXVWRPL]HG ORDQV LQ WKH VPDOO HQWHUSULVH
ILQDQFHVHJPHQWLQDQGZHKDYHFRQWLQXDOO\IRFXVHGRQH[SDQGLQJRXUFXVWRPHUEDVHIRUWKLVSURGXFWVLQFH
WKHQ$FFRUGLQJWRWKH)URVWDQG6XOOLYDQUHSRUWWLWOHG³$QDO\VLVRI060(/RDQ0DUNHWVIRU1%)&VLQ,QGLD±
-XQH ´ ZH DUH WKH PDUNHW OHDGHU LQ WKH VPDOO ORDQ VHJPHQW ZLWK DQ HVWLPDWHG PDUNHW VKDUH RI LQ
ILVFDO
:HEHOLHYHWKDWWKHVPDOOHQWHUSULVHILQDQFHVHJPHQWKDVVLJQLILFDQWURRPIRUJURZWKLQWKH,QGLDQPDUNHWSODFH
$FFRUGLQJWR)URVWDQG6XOOLYDQWKH060(VPDOOORDQFUHGLWPDUNHWLQ,QGLDLVH[SHFWHGWRLQFUHDVHDWD&$*5
RI EHWZHHQ DQG ³$QDO\VLV RI 060( /RDQ 0DUNHWV IRU 1%)&V ± -XQH ´ :LWK RXU
PDUNHWOHDGHUVKLSSRVLWLRQLQWKHVPDOOHQWHUSULVHILQDQFHVHJPHQWZHEHOLHYHWKDWZHDUHLGHDOO\SRVLWLRQHGWR
WDNHDGYDQWDJHRIWKHH[SHFWHGJURZWKSRWHQWLDO,QDGGLWLRQZLWKDSSUR[LPDWHO\RIRXUEXVLQHVVRXWOHWVLQ
WKHXQGHUSHQHWUDWHGVHPLXUEDQDUHDVRI,QGLDZHEHOLHYHWKHUHLVDVLJQLILFDQWSRWHQWLDOIRUJURZWKGULYHQE\
ULVLQJLQFRPHOHYHOVLQWKHVHDUHDV
(VWDEOLVKHGEUDQGQDPHDQGDVVRFLDWLRQZLWKWKH6KULUDP*URXS
:H EHQHILW IURP RXU DVVRFLDWLRQ ZLWK WKH 6KULUDP *URXS D ILQDQFLDO VHUYLFHV FRQJORPHUDWH LQ ,QGLD 7KH
6KULUDP *URXS HQJDJHV LQ D EURDG UDQJH RI ILQDQFLDO VHUYLFHV LQFOXGLQJ FRPPHUFLDO YHKLFOH ILQDQFLQJ
FRQVXPHU ILQDQFH OLIH DQG JHQHUDO LQVXUDQFH VWRFN EURNLQJ FKLW IXQGV DQG GLVWULEXWLRQ RI ILQDQFLDO SURGXFWV
VXFKDVOLIHDQGJHQHUDOLQVXUDQFHSURGXFWVDQGPXWXDOIXQGSURGXFWV7KH6KULUDP*URXSDOVRKDVD JURZLQJ
SUHVHQFHLQRWKHUEXVLQHVVHV VXFKDVSURSHUW\GHYHORSPHQWHQJLQHHULQJSURMHFWVDQGLQIRUPDWLRQWHFKQRORJ\
:HEHOLHYHWKDWWKH6KULUDPEUDQGQDPHLVUHFRJQL]DEOHDPRQJWKHSRSXODFHLQ,QGLD
:H SDUWLFXODUO\ EHQHILW IURP WKH ODUJH FXVWRPHU EDVH DQG ZLGHVSUHDG QHWZRUN RI FHUWDLQ 6KULUDP *URXS
FRPSDQLHV LQFOXGLQJ HQWLWLHV RSHUDWLQJ XQGHU WKH 6KULUDP &KLWV EUDQG QDPH 6KULUDP 7UDQVSRUW )LQDQFH
&RPSDQ\ /LPLWHG 6KULUDP )RUWXQH 6ROXWLRQV /LPLWHG DQG 6KULUDP )LQDQFLDO 3URGXFWV 6ROXWLRQV &KHQQDL
3ULYDWH/LPLWHG7KHVHDVVRFLDWLRQVSURYLGHXVZLWKDODUJHSRRORIWDUJHWFXVWRPHUVZKRZHEHOLHYHWUXVWWKH
6KULUDPEUDQGQDPH)XUWKHUZHDUHDEOHWRGUDZRQDOORIFULWLFDOFDSDELOLWLHVDQGLQVWLWXWLRQDONQRZOHGJHRI
HQWLWLHV RSHUDWLQJ XQGHU WKH 6KULUDP &KLWV EUDQG QDPH LQFOXGLQJ V\VWHPV SURFHVVHV DQG FXVWRPHU FUHGLW
KLVWRULHVDQGUHSD\PHQWUHFRUGVZKLFKFRQWULEXWHWRUHGXFLQJULVNLQFUHDVLQJHIILFLHQF\DQGLPSURYLQJRXUORDQ
ERRNTXDOLW\
,QDGGLWLRQZHDUHDEOHWRH[SDQGRXUORDQSRUWIROLRDQGPLQLPL]HRXUFUHGLWULVNE\SURYLGLQJVPDOOHQWHUSULVH
ORDQVWRFXVWRPHUVRIHQWLWLHVRSHUDWLQJXQGHUWKH6KULUDP&KLWVEUDQGQDPHWKDWDUHSDUWO\RUHQWLUHO\VHFXUHG
E\ WKHLU 6KULUDP &KLWV GHSRVLWV :H EHOLHYH WKH XQGHUEDQNHG FRPPXQLW\ HVSHFLDOO\ WKH VPDOO HQWHUSULVH
ILQDQFHVHJPHQWRIWHQGRHVQRWKDYHVXIILFLHQWPRYDEOHDQGRULPPRYDEOHSURSHUW\WRSURYLGHDVVHFXULW\IRU
ORDQV$VDUHVXOWRIRXUDVVRFLDWLRQZLWKHQWLWLHVRSHUDWLQJXQGHUWKH6KULUDP&KLWVEUDQGQDPHZHDUHIDPLOLDU
ZLWKWKHVHFXVWRPHUV¶UHTXLUHPHQWVDQGZHDUHDEOHWRHIIHFWLYHO\VHUYLFHWKHPZLWKSDUWLDOO\RUIXOO\VHFXUHG
ILQDQFLQJ
)LQDOO\ZHEHOLHYHWKDWRXUDVVRFLDWLRQZLWKWKH6KULUDP*URXSDQGWKHVWUHQJWKRIWKH6KULUDPEUDQGDOORZVXV
WR H[SDQG ZLWKLQ RXU WDUJHW PDUNHW LQ H[LVWLQJ DQG QHZ JHRJUDSKLHV ZLWK PLQLPDO PDUNHWLQJ VSHQG :H DOVR
EHOLHYH WKDW WKH JRRGZLOO DVVRFLDWHG ZLWK WKH 6KULUDP EUDQG QDPH DOORZV XV WR DFFHVV IXQGLQJ DW D UHODWLYHO\
FRPSHWLWLYHFRVW
'LYHUVLILHG3RUWIROLRRI3URGXFWV
:HKDYHVXFFHVVIXOO\GLYHUVLILHGRXUSURGXFWSRUWIROLRZKLFKFRQVLVWVRIORDQVWRWKHVPDOOHQWHUSULVHILQDQFH
VHJPHQWORDQVDJDLQVWJROG3URGXFW)LQDQFHORDQVSUHRZQHGDQGQHZYHKLFOHORDQVDQGSHUVRQDOORDQV(DFK
RIRXUSURGXFWVGLIIHUVLQWHUPVRIWKHDYHUDJH WHQXUHDYHUDJH\LHOGDYHUDJHLQWHUHVWUDWHDQGDYHUDJHVL]HRI
ORDQ $VRI 6HSWHPEHUDQG 0DUFKDSSUR[LPDWHO\ DQGRIRXUDVVHWV XQGHU
PDQDJHPHQW FRPSULVHG ORDQV WR VPDOO HQWHUSULVHV DQG RI RXU DVVHWV XQGHU PDQDJHPHQW
FRPSULVHGORDQVDJDLQVWJROGDQGRIRXUDVVHWVXQGHUPDQDJHPHQWFRPSULVHG3URGXFW)LQDQFH
ORDQV DQG RI RXU DVVHWV XQGHU PDQDJHPHQW FRPSULVHG SUHRZQHG DQG QHZ YHKLFOH ORDQV DQG
DQGRIRXUDVVHWVXQGHUPDQDJHPHQWFRPSULVHGSHUVRQDOORDQVUHVSHFWLYHO\2XUGLYHUVHUHYHQXH
VWUHDPV UHGXFH RXU GHSHQGHQFH RQ DQ\ SDUWLFXODU SURGXFW WKXV HQDEOLQJ XV WR VSUHDG DQG PLWLJDWH RXU ULVN
H[SRVXUH WR DQ\ SDUWLFXODU LQGXVWU\ EXVLQHVV RU FXVWRPHU VHJPHQW 7KH IROORZLQJ JUDSK LOOXVWUDWHV WKH
GLYHUVLILFDWLRQRIRXUSURGXFWSRUWIROLRRYHUWKHSDVWWKUHHILQDQFLDO\HDUV
+XEDQGVSRNHEXVLQHVVPRGHOZLWKHIILFLHQWFUHGLWSROLFLHVDQGSURFHGXUHVUHVXOWLQJLQKLJKDVVHWTXDOLW\
:H RSHUDWH D µKXEDQG VSRNH¶ EXVLQHVV PRGHO ZKHUH UHVSRQVLELOLWLHV IURP ORDQ RULJLQDWLRQ WR UHFRYHULHV RI
ORDQVDUHYHVWHGLQHDFKRIRXUEXVLQHVVRXWOHWVXQGHUWKHJHQHUDOVXSHUYLVLRQDQGFRQWURORIRXUKHDGRIILFHLQ
&KHQQDL2XUEXVLQHVVRXWOHWQHWZRUNVDUHIXOO\LQWHUFRQQHFWHGDQGHDFKEXVLQHVVRXWOHWLVFRQQHFWHGWRRXUKHDG
RIILFHWKURXJKRXUSURSULHWDU\(53SODWIRUP2XU(53SODWIRUPHQDEOHVRXUPDQDJHPHQWWRPRQLWRUHDFKORDQ
IURPRULJLQDWLRQWRUHSD\PHQWRUUHFRYHU\RIWKHORDQ
2XU VHQLRU PDQDJHPHQW LV SULPDULO\ UHVSRQVLEOH IRU WKH SROLF\ IRUPXODWLRQ IRU RXU EXVLQHVVHV +RZHYHU WKH
GHFLVLRQ PDNLQJSURFHVVLQFRQQHFWLRQ ZLWKORDQVLVGHFHQWUDOL]HGDQG PDMRUO\ YHVWHGLQRXUEXVLQHVVRXWOHWV
ZKLFKHQVXUHVVSHHG\FUHGLWDSSURYDOVDQGPRUHHIILFLHQWWXUQDURXQGWLPHVLQSURFHVVLQJORDQV
:H IRFXV RQ FORVHO\ PRQLWRULQJ RXU DVVHWV DQG ERUURZHUV WKURXJK RXU RIILFLDOV DW HDFK EXVLQHVV RXWOHW 2XU
RIILFLDOV DW WKH EXVLQHVV RXWOHWV GHYHORS UHODWLRQVKLSV ZLWK RXU WDUJHW FXVWRPHU EDVH ZKLFK HQDEOHV XV WR
FDSLWDOL]H RQORFDONQRZOHGJH:H IROORZVWULQJHQWFUHGLWSROLFLHVLQFOXGLQJOLPLWVRQFXVWRPHUH[SRVXUHDQG
WKHQDWXUHRIVHFXULW\SURYLGHGWREROVWHUWKHDVVHWTXDOLW\RIRXUORDQV)XUWKHUZHKDYHQXUWXUHGDFXOWXUHRI
DFFRXQWDELOLW\E\PDNLQJRXUSURGXFWH[HFXWLYHVDWHDFKEXVLQHVVRXWOHWUHVSRQVLEOHIRUORDQDGPLQLVWUDWLRQDQG
PRQLWRULQJ DV ZHOO DV UHFRYHU\ RI WKH ORDQV WKH\ RULJLQDWH :H KDYH D GHGLFDWHG WHDP RI RIILFLDOV DW HDFK
EXVLQHVV RXWOHW ZKR DUH UHVSRQVLEOH IRU L ORDQ RULJLQDWLRQ LL FUHGLW HYDOXDWLRQ LLL SUHOHQGLQJ ILHOG
LQYHVWLJDWLRQVZKHUHRXURIILFLDOVSHUVRQDOO\YLVLWRXUSURVSHFWLYHFXVWRPHUVDWWKHLUKRPHVRURIILFHVDQGY
SRVWOHQGLQJSURFHGXUHV7KHWHDPRIRIILFLDOVUHVSRQVLEOH IRURULJLQDWLRQRIDORDQLVDOVRUHVSRQVLEOHIRUWKH
WLPHO\VHUYLFLQJRIORDQVUHFRYHULHVDQGPRQLWRULQJWKHSHUIRUPDQFHRIHDFKORDQIURPRULJLQDWLRQWRFORVXUHRI
WKHORDQ:HW\SLFDOO\RIIHULQFHQWLYL]HGVDODU\VWUXFWXUHVWRVXFKRIILFLDOVZKHUHWKHLULQFHQWLYHVDUHOLQNHGWR
UHFRYHU\ RI LQVWDOOPHQWV RI WKH SULQFLSDO DPRXQW DQG LQWHUHVW RQ WKH ORDQV :H EHOLHYH RXU HIILFLHQW FUHGLW
SROLFLHV FUHGLW DSSURYDO SURFHGXUHV FUHGLW GHOLYHU\ SURFHVV DQG UHODWLRQVKLSEDVHG ORDQ DGPLQLVWUDWLRQ DQG
PRQLWRULQJ PHWKRGRORJ\KDYHKHOSHGXVLQFUHDVHRXUFXVWRPHUOR\DOW\DQGHDUQUHSHDWEXVLQHVVDQGFXVWRPHU
UHIHUUDOV
2XUVWULQJHQWFUHGLWSROLFLHV DQGUHODWLRQVKLSEDVHG PRGHOKDYHDOVR KHOSHGXV PDLQWDLQ KLJKDVVHWTXDOLW\DV
HYLGHQFHGE\UHODWLYHO\ORZ13$OHYHOV2XUJURVV13$VDVDSHUFHQWDJHRIWRWDOORDQDVVHWVZHUHDQG
DQGRXUQHW13$VDVDSHUFHQWDJHRIQHWORDQDVVHWVZHUH DQGHDFKDVRI6HSWHPEHU
DQG0DUFKUHVSHFWLYHO\
$GYDQFHGSURFHVVHVDQGWHFKQRORJ\V\VWHPV
:H EHOLHYH WKDW ZH KDYH LPSOHPHQWHG D µEHVW LQ FODVV¶ WHFKQRORJ\ SODWIRUP DFURVV RXU RSHUDWLRQV :H KDYH
LQYHVWHGLQRXUWHFKQRORJ\V\VWHPVDQGSURFHVVHVWRLPSURYHRYHUDOOSURGXFWLYLW\DQGHQVXUHJRRGPDQDJHPHQW
RI FXVWRPHU FUHGLW TXDOLW\ (DFK EXVLQHVV RXWOHW LV FRQQHFWHG ZLWK RXU VHUYHUV LQ RXU KHDG RIILFH LQ &KHQQDL
WKURXJK D SURSULHWDU\ (53 SODWIRUP 7KLV WHFKQRORJ\ LQFUHDVHV RXU RSHUDWLRQDO DQG PDQDJHULDO HIILFLHQF\ E\
VWUHDPOLQLQJRXUFUHGLWDSSURYDODGPLQLVWUDWLRQDQGPRQLWRULQJSURFHVVHVWRPHHWFXVWRPHUUHTXLUHPHQWVRQD
UHDOWLPHEDVLV,QDGGLWLRQZHKDYHLPSOHPHQWHGWHFKQRORJ\OHGSURFHVVLQJV\VWHPVWRPDNHRXUDSSUDLVDODQG
FROOHFWLRQSURFHVVHVPRUHHIILFLHQWIDFLOLWDWHUDSLGGHOLYHU\RIFUHGLWWRRXUFXVWRPHUVDQGDXJPHQWWKHEHQHILWV
RIRXUUHODWLRQVKLSEDVHGDSSURDFK:HDOVREHOLHYHWKDWRXUDGYDQFHGWHFKQRORJ\V\VWHPVHQDEOHXVWRUHVSRQG
WRPDUNHWRSSRUWXQLWLHVDQGFKDOOHQJHVVZLIWO\LPSURYHWKHTXDOLW\RIVHUYLFHWRRXUFXVWRPHUVDQGLPSURYHRXU
ULVNPDQDJHPHQWFDSDELOLWLHV
([SHULHQFHGVHQLRUPDQDJHPHQWWHDP
2XU%RDUGFRQVLVWVRI'LUHFWRUVDQGKDVH[WHQVLYHH[SHULHQFHLQWKH ILQDQFLDOVHUYLFHVVHFWRU (DFKRIRXU
VHQLRU PDQDJHPHQW SHUVRQQHO KDV H[WHQVLYH H[SHULHQFH DQG LQGHSWK LQGXVWU\ NQRZOHGJH DQG H[SHUWLVH 2XU
PDQDJHPHQW SURPRWHV D UHVXOWRULHQWHG FXOWXUH WKDW UHZDUGV RXU HPSOR\HHV RQ WKH EDVLV RI PHULW ,Q RUGHU WR
PDLQWDLQRXUVWURQJFUHGLWDSSUDLVDODQGULVNPDQDJHPHQWV\VWHPVDQGWRHQIRUFHRXUFUHGLWSROLFLHVZHHPSOR\
DQXPEHURIVHQLRUPDQDJHUVZKRKDYHH[WHQVLYHH[SHULHQFHLQWKH,QGLDQEDQNLQJDQGILQDQFLDOVHUYLFHVVHFWRU
DQG LQ VSHFLDOL]HG ILQDQFH ILUPV SURYLGLQJ ORDQV WR UHWDLO FXVWRPHUV :H EHOLHYH WKDW WKH LQGHSWK LQGXVWU\
NQRZOHGJHRIRXUPDQDJHPHQWDQGSURIHVVLRQDOVSURYLGHXVZLWKDGLVWLQFWFRPSHWLWLYHDGYDQWDJH
6WUDWHJ\
2XUNH\VWUDWHJLFSULRULWLHVDUHDVIROORZV
&RQWLQXHWRJURZRXUVPDOOHQWHUSULVH ILQDQFHVHJPHQWE\ FDSLWDOL]LQJRQ WKH 6KULUDP*URXSEUDQGQDPH
DQGHFRV\VWHP
:LWKRXU PDUNHWOHDGHUVKLSSRVLWLRQLQWKH VPDOOHQWHUSULVHILQDQFHVHJPHQW ZH EHOLHYHWKDW ZH DUH XQLTXHO\
SRVLWLRQHGWRWDNHDGYDQWDJHRIWKHH[SHFWHGJURZWKSRWHQWLDOLQWKLVVHJPHQWDQGZHZLOOFRQWLQXHWRIRFXVRQ
JURZLQJWKLVEXVLQHVV:HEHOLHYHWKDWRXUDVVRFLDWLRQZLWKWKH6KULUDP*URXSDQGWKHVWUHQJWKRIWKH6KULUDP
EUDQG ZLOO DOORZ XV WR FRQWLQXH WR H[SDQG ZLWKLQ RXU WDUJHW PDUNHW LQ H[LVWLQJ DQG QHZ JHRJUDSKLHV ZLWK
PLQLPDO PDUNHWLQJ VSHQG :H LQWHQG WR FRQWLQXH WR FDSLWDOL]H RQ WKH 6KULUDP EUDQG QDPH DQG LQIUDVWUXFWXUH
SURYLGHG E\ WKH 6KULUDP *URXS SDUWLFXODUO\ HQWLWLHV RSHUDWLQJ XQGHU WKH 6KULUDP &KLWV EUDQG QDPH (QWLWLHV
RSHUDWLQJ XQGHU WKH 6KULUDP &KLWV EUDQG QDPH FROOHFW FKLW GHSRVLWV IURP VHOIHPSOR\HG SURIHVVLRQDOV
ZKROHVDOHUHWDLO GHDOHUV PHUFKDQWV EXLOGHUV PDQXIDFWXUHUV DQG VPDOO DQG PHGLXP VFDOH EXVLQHVV RSHUDWRUV
ZKLFKSURYLGHVXVZLWKDQH[WHQVLYHGDWDEDVHRISUHVFUHHQHGSRWHQWLDOERUURZHUVSDUWLFXODUO\IRURXUORDQVLQ
WKH VPDOO HQWHUSULVH ILQDQFH VHJPHQW ,Q DGGLWLRQ ZH LQWHQG WR FRQWLQXH WR FDSLWDOL]H RQ WKH 6KULUDP *URXS
HFRV\VWHP SDUWLFXODUO\ WKH FULWLFDO FDSDELOLWLHV DQG LQVWLWXWLRQDO NQRZOHGJH RI HQWLWLHV RSHUDWLQJ XQGHU WKH
6KULUDP&KLWVEUDQGQDPHLQFOXGLQJWKHLUSURFHVVHVDQGFXVWRPHUFUHGLWKLVWRULHVDQGUHSD\PHQWUHFRUGV
&RQWLQXHWRIRFXVRQFRQWURORIRSHUDWLQJFRVWVDQGRSHUDWLRQDOHIILFLHQF\
:KLOH ZH KDYH JURZQ UDSLGO\ VLQFH RXU LQFRUSRUDWLRQ LQ WR EHFRPH WKH PDUNHW OHDGHU LQ WKH VPDOO ORDQ
VHJPHQW ZLWK DQ HVWLPDWHG PDUNHW VKDUH RI LQ ILVFDO 6RXUFH $QDO\VLV RI WKH 060( 6PDOO /RDQ
&UHGLW0DUNHWIRU1%)&VLQ,QGLD-XQHE\)URVW6XOOLYDQZHEHOLHYHZHKDYHPDLQWDLQHGHIILFLHQF\
LQRXURSHUDWLRQV)RUWKHVL[PRQWKVHQGHG6HSWHPEHUDQG ILQDQFLDO\HDUVDQGZH
UHFRUGHG SURILW DIWHU WD[ RI ` ODNKV ` ODNKV ` ODNKV DQG ` ODNKV
UHVSHFWLYHO\ $V ZH FRQWLQXH WR LQWURGXFH QHZ SURGXFW RIIHULQJV DW HDFK RI RXU H[LVWLQJ EXVLQHVV RXWOHWV DQG
HVWDEOLVKQHZEXVLQHVVRXWOHWVZHLQWHQGWRFRQWLQXHWRSXUVXHWKHIROORZLQJLQLWLDWLYHVDPRQJRWKHUVWRUHGXFH
FRVWVDQGHQKDQFHRXURSHUDWLRQDOHIILFLHQF\VRWKDWRXURSHUDWLQJFRVWVGRQRWRXWSDFHRXUJURZWK
FRQWLQXDOO\ DVVHVV DQG LPSURYH RXU WHFKQRORJ\ SODWIRUP VR WKDW RXU FUHGLW DSSURYDO DGPLQLVWUDWLRQ DQG
PRQLWRULQJ SURFHVVHV DOORZ XV WR VHUYLFH RXU FXVWRPHUV RQ D UHDOWLPH EDVLV ZKLOH HQVXULQJ WKDW RXU
DSSUDLVDODQGFROOHFWLRQSURFHVVHVDUHHIIHFWLYHDQGPLQLPL]HULVNDQG
VHHNDGGLWLRQDOZD\VWRFDSLWDOL]HRQWKHODUJHFXVWRPHUEDVHDQGZLGHVSUHDGQHWZRUNRIEXVLQHVVRXWOHWV
RIWKH6KULUDP*URXSLQSDUWLFXODUHQWLWLHVVXFKDV6KULUDP7UDQVSRUW)LQDQFH&RPSDQ\/LPLWHGRQHRIWKH
ODUJHVW RUJDQL]HG DVVHW ILQDQFLQJ 1%)&V LQ ,QGLD DQG HQWLWLHV RSHUDWLQJ XQGHU WKH 6KULUDP &KLWV EUDQG
QDPH
)XUWKHU H[SDQG RSHUDWLRQV E\ LQWURGXFLQJ RXU IXOO UDQJH RI SURGXFWV LQ DOO RI RXU EXVLQHVV RXWOHWV DQG
JURZLQJRXUEXVLQHVVRXWOHWQHWZRUN
$V RI 6HSWHPEHU ZH KDG EXVLQHVV RXWOHWV DFURVV ,QGLD ZLWK D VLJQLILFDQW SUHVHQFH LQ VRXWK
,QGLDKRZHYHUQRWDOORIRXUEXVLQHVVRXWOHWVFXUUHQWO\RIIHURXUIXOOUDQJHRISURGXFWV$VDQLQWHUQDOSROLF\
ZHW\SLFDOO\LQWURGXFH QHZSURGXFWVLQDSDUWLFXODUORFDWLRQRQO\DIWHUHYDOXDWLQJWKH UHJLRQDO PDUNHWDQGWKH
GHPDQGIRUHDFKLQGLYLGXDOSURGXFW,QDGGLWLRQZHGRQRWLQWURGXFHQHZSURGXFWVDWDEXVLQHVVRXWOHWXQWLOWKH
VWDIIVWUHQJWKDQGH[SHULHQFHDWWKHSDUWLFXODUORFDWLRQLVDGHTXDWHWRVXSSRUWWKHQHZSURGXFWRUSURGXFWV$VRI
6HSWHPEHU DSSUR[LPDWHO\ RI RXU EXVLQHVV RXWOHWV RIIHUHG DOO RI RXU SURGXFWV $V D SDUW RI RXU
VWUDWHJ\ZHLQWHQGWRJUDGXDOO\LQWURGXFHRXUHQWLUHUDQJHRISURGXFWRIIHULQJVDWRXUH[LVWLQJEXVLQHVVRXWOHWV
DFURVV,QGLDEDVHGRQWKHUHJLRQDOPDUNHWGHPDQGIRUHFDVW
,Q DGGLWLRQ ZH LQWHQG WR H[SDQG RXU RSHUDWLRQV WKURXJK QHZ EXVLQHVV RXWOHWV LQ FLWLHV DQG WRZQV ZKHUH ZH
KLVWRULFDOO\KDYHKDGUHODWLYHO\OLPLWHGRSHUDWLRQVVXFKDVLQHDVWHUQDQGQRUWKHUQSDUWVRI,QGLDDQGWRIXUWKHU
FRQVROLGDWH RXU SRVLWLRQ DQG RSHUDWLRQV LQ WKH ZHVWHUQ DQG VRXWKHUQ SDUWV RI ,QGLD 2XU EXVLQHVV LV FXUUHQWO\
FRQFHQWUDWHG LQ VRXWK ,QGLD ZLWK RI RXU EXVLQHVV RXWOHWV DV RQ 6HSWHPEHU ORFDWHG LQ WKH
VWDWHVRI7DPLO1DGX$QGKUD3UDGHVK.DUQDWDNDDQG.HUDOD:HLQWHQGWRFRQWLQXHWRPDNHHIIRUWVWRH[SDQG
LQWR RWKHU UHJLRQV LQ ,QGLD ZLWK D IRFXV RQ 7LHU ,, DQG 7LHU ,,, FLWLHV ZKHUH ZH EHOLHYH WKH GHPDQG IRU RXU
SURGXFWVZLOOJURZVWHDGLO\LQWKHQHDUIXWXUH
,PSURYHRXUFUHGLWUDWLQJVWRGHFUHDVHRXUFRVWRIIXQGV
:HIXQGRXUFDSLWDOUHTXLUHPHQWVWKURXJKDYDULHW\RIVRXUFHVLQFOXGLQJWHUPDQGZRUNLQJFDSLWDOORDQVIURP
EDQNVLVVXDQFHRIQRQFRQYHUWLEOHGHEHQWXUHVDQGFRPPHUFLDOSDSHUDQGIL[HGGHSRVLWVIURPUHWDLOFXVWRPHUV
)RU GHWDLOV RI RXU FUHGLW UDWLQJV DV RI 6HSWHPEHU SOHDVH VHH VHFWLRQ WLWOHG ³2XU %XVLQHVV ± &UHGLW
5DWLQJ´RQSDJH
:H EHOLHYH WKDW ZH KDYH EHHQDEOHWRDFKLHYH UHODWLYHO\VWDEOHDQGFRPSHWLWLYH FRVWRI IXQGV IURPD UDQJH RI
VRXUFHVGHVSLWHWKHGLIILFXOWFRQGLWLRQVLQWKHJOREDODQG,QGLDQHFRQRP\DQGWKHUHVXOWLQJUHGXFHGOLTXLGLW\DQG
LQFUHDVHLQLQWHUHVWUDWHVSULPDULO\GXHWRRXUFUHGLWUDWLQJVDQGWKHJRRGZLOODVVRFLDWHGZLWKWKH6KULUDPEUDQG
QDPH%DVHGRQRXULQFUHDVLQJO\VWURQJEDODQFHVKHHW ZHEHOLHYHWKDW ZH ZLOOEHDEOHWRIXUWKHULPSURYHRXU
FUHGLWUDWLQJVZKLFKPD\GHFUHDVHRXUFRVWRIIXQGV
*URZRXUKRXVLQJILQDQFHEXVLQHVV
:HEHJDQSURYLGLQJKRPHORDQILQDQFLQJWKURXJKRXUVXEVLGLDU\6KULUDP+RXVLQJ)LQDQFH/LPLWHG³6KULUDP
+RXVLQJ´ LQ WKH ILQDQFLDO \HDU ,Q $SULO 9DOLDQW 0DXULWLXV 3DUWQHUV )', /LPLWHG LQYHVWHG LQ
6KULUDP+RXVLQJDQGKROGVRIWKHWRWDOVKDUHFDSLWDORI6KULUDP+RXVLQJ$VRI6HSWHPEHU
ZH KDYH GLVEXUVHG ` ODNKV LQ KRPH ORDQV SULPDULO\ WR PLGGOHLQFRPH FXVWRPHUV LQ VHPLXUEDQ
ORFDWLRQV2XUKRXVLQJILQDQFHEXVLQHVVDVRI6HSWHPEHUDJJUHJDWHG`ODNKV:HEHOLHYHWKDW
ZHDUHZHOOSRVLWLRQHGWRJURZRXUKRXVLQJILQDQFHEXVLQHVVWKURXJKRXUHVWDEOLVKHGLQIUDVWUXFWXUHRXUH[LVWLQJ
FXVWRPHUEDVHDQGRXUDVVRFLDWLRQ ZLWKRWKHUHQWLWLHV LQWKH6KULUDP*URXS:HDOVREHOLHYHWKDWWKH KRXVLQJ
ILQDQFH VHJPHQW LQ ,QGLD LV XQGHUSHQHWUDWHG DV FRPSDUHG WR PRUH GHYHORSHG PDUNHWV 7KH ,QGLDQ KRXVLQJ
ILQDQFHPDUNHWLVFKDUDFWHUL]HGE\DQDFWLYHSULPDU\PRUWJDJHPDUNHW7KHVHFRQGDU\PDUNHWLVVWLOOHYROYLQJ
+RXVLQJORDQVDVDSHUFHQWDJHRI*'3KDYHUHPDLQHGDWDSSUR[LPDWHO\VLJQLILFDQWO\ORZHUWKDQWKHOHYHOV
DFKLHYHG LQ PRVW GHYHORSHG FRXQWULHV :H EHOLHYH WKLV XQGHUSHQHWUDWLRQ ZLOO LQFUHDVH GHPDQG IRU KRXVLQJ
ILQDQFHDQGKHOSRXUSURGXFWJURZVWHDGLO\LQWKHQHDUIXWXUH
'HVFULSWLRQRI2XU%XVLQHVV
2XU3URGXFWV
:H RIIHU PXOWLSOH ILQDQFLQJ SURGXFWV LQFOXGLQJ ORDQV WR WKH VPDOO HQWHUSULVH ILQDQFH VHJPHQW ORDQV DJDLQVW
JROG 3URGXFW )LQDQFH ILQDQFLQJ IRU WZR ZKHHOHUV DSSOLDQFHV DQG RWKHU FRPPHUFLDO JRRGV SUHRZQHG DQG
QHZYHKLFOHORDQVDQGSHUVRQDOORDQV7KHIROORZLQJFKDUWLOOXVWUDWHVWKHSHUFHQWDJHRIDVVHWVXQGHUPDQDJHPHQW
DWWULEXWDEOHWRHDFKSURGXFWOLQHIRUWKHVL[PRQWKVHQGHG6HSWHPEHU
6PDOO(QWHUSULVH)LQDQFH6HJPHQW
:HEHJDQRIIHULQJFXVWRPL]HGORDQVWRWKHVPDOODQGPHGLXPHQWHUSULVHILQDQFHVHJPHQWLQDQGZHKDYH
FRQWLQXDOO\ IRFXVHG RQ H[SDQGLQJ RXU FXVWRPHU EDVH IRU WKLV SURGXFW VLQFH WKHQ $FFRUGLQJ WR )URVW DQG
6XOOLYDQ WKH 060( VPDOO ORDQ FUHGLW PDUNHW LQ ,QGLD LV H[SHFWHG WR LQFUHDVH DW D &$*5 RI EHWZHHQ
DQG³$QDO\VLVRI060(/RDQ0DUNHWVIRU1%)&V±-XQH´
&XUUHQWO\ZHRIIHUEXVLQHVVORDQVWRWKHVPDOOHQWHUSULVHILQDQFHVHJPHQWIRUDQDYHUDJH WHQXUHRIPRQWKV
DQGDQDYHUDJH\LHOGRI2XUWDUJHWFXVWRPHUVLQWKHVPDOOHQWHUSULVHILQDQFHVHJPHQWW\SLFDOO\FRQVLVW
RI VHOIHPSOR\HG SURIHVVLRQDOV ZKROHVDOH DQG UHWDLO GHDOHUV PHUFKDQWV EXLOGHUV VPDOO DQG PHGLXP VFDOH
PDQXIDFWXULQJFRQFHUQVFDWHULQJVHUYLFHVDQGWRXURSHUDWRUVDPRQJRWKHUV(DFKVPDOOHQWHUSULVHILQDQFHORDQ
LV W\SLFDOO\ FXVWRPL]HG WR VXLW WKH UHTXLUHPHQWV RI WKH FXVWRPHU DIWHU KDYLQJ DVVHVVHG DQG XQGHUVWRRG WKHLU
EXVLQHVV PRGHO $V RI 6HSWHPEHU RXU DVVHWV XQGHU PDQDJHPHQW IRU ORDQV WR WKH VPDOO HQWHUSULVH
ILQDQFHVHJPHQWZDV `ODNKVZKLFKUHSUHVHQWHGRIRXUWRWDODVVHWVXQGHUPDQDJHPHQWDVRI
WKDWGDWH
7KH6KULUDP*URXSSDUWLFXODUO\HQWLWLHVRSHUDWLQJXQGHUWKH6KULUDP&KLWVEUDQGQDPHKDVDODUJHQXPEHURI
FXVWRPHUV XQGHU WKH VPDOO HQWHUSULVH ILQDQFH VHJPHQW :H LQWHQG WR LQFUHDVH WKH VL]H RI RXU VPDOO HQWHUSULVH
ILQDQFHVHJPHQWSRUWIROLRE\FRQWLQXLQJWRRIIHUFXVWRPL]HGSURGXFWVWRRXUWDUJHWFXVWRPHUVZLWKDSDUWLFXODU
IRFXV RQ H[LVWLQJ FXVWRPHUV RI HQWLWLHV RSHUDWLQJ XQGHU WKH 6KULUDP &KLWV EUDQG QDPH DQG UHIHUUDOV IURP
FXVWRPHUVRIVXFKHQWLWLHV
/RDQVDJDLQVW*ROG
6LQFHZHKDYHSURYLGHGSHUVRQDODQGEXVLQHVVORDQVVHFXUHGE\JROGMHZHOOHU\DQGRUQDPHQWV:HSURYLGH
SHUVRQDOJROGORDQVSULPDULO\WRLQGLYLGXDOVZKRSRVVHVVJROGMHZHOOHU\EXWGRQRWKDYHDFFHVVWRIRUPDOFUHGLW
ZLWKLQDUHDVRQDEOHWLPHRUWRZKRPFUHGLWPD\QRWEHDYDLODEOHDWDOOWRPHHWWKHLUVKRUWWHUPUHTXLUHPHQWV
2XUSHUVRQDOJROGORDQVDUHIRUDQDYHUDJHWHQXUHRIWKUHHWRIRXUPRQWKVDQGSURYLGHDW\SLFDODYHUDJH\LHOGRI
$V RI 6HSWHPEHU RXU DVVHWV XQGHU PDQDJHPHQW IRU SHUVRQDO ORDQV DJDLQVW JROG ZDV
`ODNKVZKLFKUHSUHVHQWHGRIRXUWRWDODVVHWVXQGHUPDQDJHPHQWDVRIWKDWGDWH
:H DOVR SURYLGH EXVLQHVV ORDQV VHFXUHG E\ JROG DQG RUQDPHQWV WR VPDOO HQWHUSULVHV LQFOXGLQJ SDZQ EURNHUV
2XUEXVLQHVVJROGORDQVDUHIRUDQDYHUDJHWHQXUHRIILYHWRVL[PRQWKVDQGSURYLGHDW\SLFDODYHUDJH\LHOGRI
$V RI 6HSWHPEHU RXU DVVHWV XQGHU PDQDJHPHQW IRU EXVLQHVV ORDQV DJDLQVW JROG ZDV `
ODNKVZKLFKUHSUHVHQWHGRIRXUWRWDODVVHWVXQGHUPDQDJHPHQWDVRIWKDWGDWH
3UHRZQHGDQG1HZ9HKLFOH/RDQV
:HRIIHUDYDULHW\RIORDQVWRILQDQFHWKHSXUFKDVHRIQHZDQGSUHRZQHGSDVVHQJHUDQGFRPPHUFLDOYHKLFOHV
LQFOXGLQJ WKUHH ZKHHOHUV IRXU ZKHHOHUV DQG QHZ DQG SUHRZQHG FDUV 2XU YHKLFOH ILQDQFLQJ SURGXFWV DUH
SULQFLSDOO\ WDUJHWHG DW WKH ILQDQFLQJ RI SUHRZQHG SDVVHQJHU YHKLFOHV :LWK UHVSHFW WR QHZ YHKLFOH ORDQV RXU
H[HFXWLYHVDUHVWDWLRQHGDWWKHVKRZURRPVRIYDULRXVSDVVHQJHUDQGFRPPHUFLDOYHKLFOHGHDOHUV2XUH[HFXWLYHV
DUHUHVSRQVLEOHIRUEULQJLQJLQWKHFXVWRPHUFUHGLWYHULILFDWLRQORDQRULJLQDWLRQDQGUHFRYHU\RIWKHORDQ7KH
DYHUDJHWHQXUHIRURXUYHKLFOHORDQVLVW\SLFDOO\PRQWKVDQGWKHDYHUDJH\LHOGW\SLFDOO\UDQJHVEHWZHHQ
2XUFXVWRPHUVW\SLFDOO\FRQWULEXWHRIWKHSXUFKDVHSULFHRIWKHDVVHWZLWKWKHEDODQFHILQDQFHG
E\XV$VRI6HSWHPEHURXUDVVHWVXQGHUPDQDJHPHQWIRUYHKLFOHORDQVZDV `ODNKVZKLFK
UHSUHVHQWHGRIRXUWRWDODVVHWVXQGHUPDQDJHPHQWDVRIWKDWGDWH
3URGXFW)LQDQFH/RDQV
2XU SURGXFW ILQDQFH ORDQV LQFOXGH WZR ZKHHOHU ORDQV DQG ORDQV IRU SXUFKDVH RI KRPH DSSOLDQFHV DQG RWKHU
FRPPHUFLDOJRRGV7KHDYHUDJHWHQXUHIRURXUWZRZKHHOHUORDQVLVW\SLFDOO\PRQWKVDQGWKHDYHUDJH\LHOG
W\SLFDOO\ UDQJHV EHWZHHQ $V RI 6HSWHPEHU RXU DVVHWV XQGHU PDQDJHPHQW IRU WZR ZKHHOHU
ORDQVZDV`ODNKVZKLFKUHSUHVHQWHGRIRXUWRWDODVVHWVXQGHUPDQDJHPHQWDVRIWKDWGDWH
7KHDYHUDJHWHQXUHIRUORDQVIRUWKHSXUFKDVHRIKRPHDSSOLDQFHVDQGRWKHUFRPPHUFLDOJRRGVLVW\SLFDOO\
PRQWKV DQG WKH DYHUDJH \LHOG W\SLFDOO\ UDQJHV EHWZHHQ $V RI 6HSWHPEHU RXU DVVHWV XQGHU
PDQDJHPHQW IRU ORDQV IRU SXUFKDVH RI KRPH DSSOLDQFHV DQG RWKHU FRPPHUFLDO JRRGV ZDV ` ODNKV
ZKLFKUHSUHVHQWHGRIRXUWRWDODVVHWVXQGHUPDQDJHPHQWDVRIWKDWGDWH
3HUVRQDO/RDQV
:HSURYLGHSHUVRQDOORDQVRQO\WRRXUH[LVWLQJFXVWRPHUVDQGFXVWRPHUVRIHQWLWLHVRSHUDWLQJXQGHUWKH6KULUDP
EUDQGQDPH2XURIILFLDOVUHDFKRXWGLUHFWO\WRRXUSHUVRQDOORDQFXVWRPHUVDQGYLVLWWKHPDWWKHLUGRRUVWHSWR
FDUU\RXWORDQRULJLQDWLRQDQGFUHGLWHYDOXDWLRQVRDVWRHQVXUHVSHHG\SURFHVVLQJRIORDQV:HWDUJHWFXVWRPHU
VHJPHQWVWKDWGRQRWKDYHHDV\DFFHVVWREDQNVRURWKHUPRGHVRIILQDQFLQJIRULPPHGLDWHVKRUWRUPHGLXPWHUP
IXQGLQJ UHTXLUHPHQWV ZLWKLQ UHDVRQDEOH WLPH &XVWRPHUV W\SLFDOO\ VHHN SHUVRQDO ORDQV IRU PHGLFDO WUHDWPHQW
HGXFDWLRQDQGZHGGLQJV7KHDYHUDJHWHQXUHIRUVXFKORDQVLVW\SLFDOO\PRQWKVZLWKDYHUDJH\LHOGVW\SLFDOO\
UDQJLQJ EHWZHHQ $V RI 6HSWHPEHU RXU DVVHWV XQGHU PDQDJHPHQW IRU SHUVRQDO ORDQV ZDV
`ODNKVZKLFKUHSUHVHQWHGRIRXUWRWDODVVHWVXQGHUPDQDJHPHQWDVRIWKDWGDWH
+RXVLQJ)LQDQFH
:H EHJDQ SURYLGLQJ KRXVLQJ ILQDQFH WR LQGLYLGXDOV WKURXJK RXU 6XEVLGLDU\ 6KULUDP +RXVLQJ D UHJLVWHUHG
KRXVLQJ ILQDQFHFRPSDQ\LQ WKH ILQDQFLDO \HDU:HJUDQW KRXVLQJILQDQFHORDQV IRUEX\LQJUHQRYDWLQJ
H[WHQGLQJ DQG LPSURYLQJ KRPHV 2XU KRXVLQJ ILQDQFH EXVLQHVV ZKLFK FXUUHQWO\ RSHUDWHV LQ VWDWHV
FRQVWLWXWHGRIRXUWRWDOLQFRPHIRUWKHVL[PRQWKVHQGHG6HSWHPEHU6KULUDP+RXVLQJHPSOR\HG
HPSOR\HHVDVRI6HSWHPEHU
6KULUDP+RXVLQJSURYLGHGDQDJJUHJDWH `ODNKVLQKRXVLQJORDQVWRFXVWRPHUVIRUWKHVL[PRQWKV
HQGHG6HSWHPEHUDQGDQDJJUHJDWH`ODNKVLQKRXVLQJORDQVWRFXVWRPHUVIRUWKHILQDQFLDO
\HDU$VVHWVXQGHUPDQDJHPHQWLQRXUKRXVLQJILQDQFHEXVLQHVVDJJUHJDWHG `ODNKVRURI
RXUWRWDOORDQDVVHWVDVRI6HSWHPEHU6KULUDP+RXVLQJUHFRJQL]HGSURILWEHIRUHWD[RI `ODNKV
DQG`ODNKVDQGDSURILWDIWHUWD[RI `ODNKV `DQGODNKVIRUWKHVL[PRQWKVHQGHG6HSWHPEHU
DQGILQDQFLDO\HDUUHVSHFWLYHO\
9DOLDQW0DXULWLXV3DUWQHUV)',/LPLWHGKROGVDLQWHUHVWLQ6KULUDP+RXVLQJ
2XU2SHUDWLRQV
%XVLQHVV2XWOHW1HWZRUN
$V RI 6HSWHPEHU ZH KDG D ZLGH QHWZRUN RI EXVLQHVV RXWOHWV DFURVV ,QGLD 2XU EXVLQHVV LV
FRQFHQWUDWHGLQUXUDODQGVHPLXUEDQDUHDVRIVRXWK,QGLDLQWKHVWDWHVRI7DPLO1DGX$QGKUD3UDGHVK.HUDOD
DQG.DUQDWDND7KHGLVWULEXWLRQRIRIILFHVDFURVV,QGLDE\UHJLRQDVRI6HSWHPEHUDQG0DUFK
DQGLVVHWRXWLQWKHIROORZLQJWDEOH
$VRI6HSWHPEHU
6RXWKHUQ,QGLD
1RUWKHUQ,QGLD
:HVWHUQ,QGLD
&HQWUDO,QGLD
(DVWHUQ,QGLD
7RWDO%XVLQHVV2XWOHWV
$VRI0DUFK
$W\SLFDOEXVLQHVVRXWOHWFRPSULVHVWKUHHWRVL[HPSOR\HHVLQFOXGLQJWKHEUDQFKPDQDJHU$VRI6HSWHPEHU
DOORIRXUEXVLQHVVRXWOHWVZHUHFRQQHFWHGWRVHUYHUVDWRXUFRUSRUDWHRIILFHWRHQDEOHUHDOWLPHLQIRUPDWLRQ
VKDULQJ ZLWK UHVSHFW WR RXU ORDQ GLVEXUVHPHQW DQG UHFRYHU\ DGPLQLVWUDWLRQ 2XU FXVWRPHU RULJLQDWLRQ HIIRUWV
VWUDWHJLFDOO\ IRFXV RQ EXLOGLQJ ORQJ WHUP UHODWLRQVKLSV ZLWK RXU FXVWRPHUV DQG DGGUHVVLQJ VSHFLILF LVVXHV DQG
ORFDOEXVLQHVVUHTXLUHPHQWVRISRWHQWLDOFXVWRPHUVLQDVSHFLILFUHJLRQ
&XVWRPHU(YDOXDWLRQ&UHGLW$SSUDLVDODQG'LVEXUVHPHQW
,QLWLDO(YDOXDWLRQ
$OOFXVWRPHURULJLQDWLRQDQGHYDOXDWLRQORDQGLVEXUVHPHQWORDQDGPLQLVWUDWLRQDQGPRQLWRULQJDVZHOODVORDQ
UHFRYHU\ SURFHVVHV DUH FDUULHG RXW E\ RXU H[HFXWLYHV DW HDFK EXVLQHVV RXWOHW ZKR DUH UHVSRQVLEOH IRU ORDQ
RULJLQDWLRQ FUHGLW HYDOXDWLRQ SUHOHQGLQJ ILHOG LQYHVWLJDWLRQV DQG SRVW OHQGLQJ SURFHGXUHV XQGHU WKH JHQHUDO
VXSHUYLVLRQ DQG FRQWURO RI RXU KHDG RIILFH 7KH WHDP RI RIILFLDOV UHVSRQVLEOH IRU RULJLQDWLRQ RI D ORDQ LV DOVR
UHVSRQVLEOH IRU WKH WLPHO\ VHUYLFLQJ RI ORDQV UHFRYHULHV DQG PRQLWRULQJ SHUIRUPDQFH RI HDFK ORDQ IURP
RULJLQDWLRQWRFORVXUHRIWKHORDQ:HW\SLFDOO\RIIHULQFHQWLYL]HGVDODU\VWUXFWXUHVWRVXFKRIILFLDOVZKHUHWKHLU
LQFHQWLYHVDUHGLUHFWO\OLQNHGWRUHFRYHU\RILQVWDOOPHQWVRIWKHSULQFLSDODPRXQWDQGLQWHUHVWRQWKHORDQV:H
GRQRWHQJDJHGLUHFWVHOOLQJRURWKHUPDUNHWLQJDQGGLVWULEXWLRQDJHQWVRUDSSUDLVHUVWRFDUU\RXWWKHVHSURFHVVHV
:KHQ D FXVWRPHU LV LGHQWLILHG DQG WKH UHTXLVLWH LQIRUPDWLRQ IRU D ILQDQFLQJ SURSRVDO LV UHFHLYHG D EUDQFK
PDQDJHURURXUEUDQFKH[HFXWLYHSHUVRQDOO\YLVLWVWKHDSSOLFDQWDWKLVRUKHUKRPHDQGRUSODFHRIEXVLQHVVWR
DVVHVVWKHORDQUHTXLUHPHQWVDQGFUHGLWZRUWKLQHVVRIWKHDSSOLFDQW$VSHURXUNQRZ\RXUFOLHQWUHTXLUHPHQWVDQ
DSSOLFDQWPXVWSURYLGHLQWHUDOLDKLVRUKHUDJHDGGUHVVHPSOR\PHQWGHWDLOVDQQXDOLQFRPHDQGLQIRUPDWLRQ
RQRXWVWDQGLQJORDQV7KHDSSOLFDQWLVUHTXLUHGWRSURYLGHSURRIRILGHQWLILFDWLRQDQGUHVLGHQFHIRUYHULILFDWLRQ
SXUSRVHV:HDOVRUHTXLUHDQDSSOLFDQWWRSURYLGHDUHIHUHQFHIURPDQH[LVWLQJFXVWRPHU*HQHUDOO\ZKHUHWKH
DSSOLFDQWLVXQDEOHWRSURYLGHVXIILFLHQWLPPRYDEOHRUPRYDEOHSURSHUW\WRVHFXUHWKHHQWLUHYDOXHRIWKHORDQ
WKHDSSOLFDQWLVDOVRUHTXLUHGWRIXUQLVKDJXDUDQWHHIURPDQDFFHSWDEOHJXDUDQWRU'HWDLOHGLQIRUPDWLRQUHODWLQJ
WRWKHJXDUDQWRULVDOVRUHTXLUHG
&UHGLW3ROLFLHVDQG6HFXULW\
:HIROORZVWULQJHQWFUHGLWSROLFLHVDQGLQWHUQDOFRQWUROPHDVXUHVWRHQVXUHWKHDVVHWTXDOLW\RIRXUORDQVDQGWKH
VHFXULW\SURYLGHGIRUVXFKORDQV$Q\GHYLDWLRQIURPRXUFUHGLWSROLFLHVLQFRQQHFWLRQZLWKDORDQDSSOLFDWLRQ
UHTXLUHV SULRU DSSURYDO IURP RXU KHDG RIILFH ,Q DGGLWLRQ WR D FUHGLW HYDOXDWLRQ RI WKH DSSOLFDQW ZH UHO\ RQ
JXDUDQWRU DUUDQJHPHQWV WKH DYDLODELOLW\ RI VHFXULW\ UHIHUUDOV IURP H[LVWLQJ UHODWLRQVKLSV DQG FORVH FOLHQW
UHODWLRQVKLSVLQRUGHUWRPDQDJHRXUDVVHWTXDOLW\)URPWLPHWRWLPHRXUPDQDJHPHQWSUHVFULEHVORDQDSSURYDO
SDUDPHWHUVZKLFKDUHOLQNHGWRWKHYDOXHRIWKHXQGHUO\LQJVHFXULW\DQGRUFROODWHUDO
,QFRQQHFWLRQZLWKDQ\UHWDLO RUVPDOOHQWHUSULVHORDQRWKHUWKDQORDQVVHFXUHGE\JROGWRDERUURZHUZKRLV
DOVRDQH[LVWLQJFXVWRPHURIDQHQWLW\RSHUDWLQJXQGHUWKH6KULUDP&KLWVEUDQGQDPHZHJHQHUDOO\FUHDWHDOLHQ
RYHU WKH FKLW GHSRVLWV RI WKH ERUURZHU ,I WKH ERUURZHU LV QRW D 6KULUDP &KLWV FXVWRPHU ZH JHQHUDOO\ UHTXLUH
LPPRYDEOHRUPRYDEOHSURSHUW\WREHSURYLGHGDVVHFXULW\IRUWKHYDOXHRIWKHORDQDPRXQW,QFDVHVZKHUHWKH
ERUURZHU LV XQDEOH WR SURYLGH LPPRYDEOH RU PRYDEOH SURSHUW\ DV VHFXULW\ WKH ERUURZHU LV DOVR UHTXLUHG WR
IXUQLVKDJXDUDQWHHIURPDQDFFHSWDEOHJXDUDQWRU
)RURXUWZRZKHHOHUDQGYHKLFOHORDQVWKHWZRZKHHOHURUYHKLFOHLVK\SRWKHFDWHGLQIDYRURIRXU&RPSDQ\IRU
WKHWHQXUHRIWKHORDQ,QFHUWDLQFDVHVZHPD\DOVRUHTXLUHSRVWGDWHGFKHFNVIURPWKHFXVWRPHUFRYHULQJDQ
LQLWLDOSHULRGRIWKHORDQ6HFXULW\UHFHLYHGIURPWKHERUURZHULQFOXGLQJXQXWLOL]HGSRVWGDWHGFKHFNVLIDQ\LV
UHOHDVHG RQ UHSD\PHQW RI DOO GXHV RU RQ FROOHFWLRQ RI WKH HQWLUH RXWVWDQGLQJ ORDQ DPRXQW SURYLGHG QR RWKHU
H[LVWLQJULJKWRUOLHQIRUDQ\RWKHUFODLPH[LVWVDJDLQVWWKHERUURZHU
:LWK UHVSHFW WR JROG ORDQV WKH SULQFLSDO IRUP RI VHFXULW\ ZH DFFHSW LV ZHDUDEOH KRXVHKROG XVHG JROG
MHZHOOHU\:HGRQRWORDQDJDLQVWEXOOLRQJROGEDUVQHZPDVVSURGXFHGMHZHOOHU\RUPHGDOOLRQVXQOHVVSOHGJHG
DORQJVLGHXVHGMHZHOOHU\7KHDPRXQWWKDWZHILQDQFHDJDLQVWJROGLVW\SLFDOO\EDVHGRQDIL[HGUDWHSHUJUDPRI
JROGFRQWHQWLQWKHMHZHOOHU\:HDSSUDLVHJROGMHZHOOHU\EDVHGRQRXUFHQWUDOL]HGSROLFLHVDQGVROHO\EDVHGRQ
LWV JROG FRQWHQW ZLWKRXW IDFWRULQJ LQ SURGXFWLRQ FRVW VW\OH EUDQG RU YDOXH RI DQ\ JHPVWRQHV (DFK EXVLQHVV
RXWOHW RIIHULQJ JROG ORDQV KDV GHVLJQDWHG H[HFXWLYHV IRU JROG DSSUDLVDO ZKR RSHUDWH XQGHU D FOHDU SROLF\
UHJDUGLQJ WKHLU IXQFWLRQ DQG UHVSRQVLELOLWLHV :H JHQHUDOO\ OHQG EHWZHHQ DQG RI WKH SULFH RI JROG
DVVXPHGE\XVZKLFKLVJHQHUDOO\ORZHUWKDQWKHPDUNHWSULFHRIJROGDWWKDWWLPH
3OHGJHGJROGLVVWRUHGDWWKHEXVLQHVVRXWOHWWKDWGLVEXUVHGWKHORDQLQDQLURQVDIHRUDVWURQJURRPGHSHQGLQJ
RQWKHYROXPHRIJROGVWRUHGDWVXFKORFDWLRQZKLFKDUHEXLOWLQDFFRUGDQFHZLWKLQGXVWU\SUDFWLFH(QVXULQJ
WKHVDIHW\DQGVHFXULW\RIHDFKEXVLQHVVRXWOHWRIIHULQJJROGORDQVLVYLWDOWRWKHEXVLQHVVDVWKHJROGLVNHSWRQ
WKH SUHPLVHV 6HFXULW\ PHDVXUHV LPSOHPHQWHG E\ XV LQFOXGH EXUJODU DODUPV VHFXULW\ JXDUGV DQG ,3 RU &&79
FDPHUDV*ROGLQYHQWRU\LVLQVXUHGLQDFFRUGDQFHZLWKLQGXVWU\SUDFWLFHDQGHDFKEXVLQHVVRXWOHWRIIHULQJJROG
ORDQVLVVXEMHFWWRYDULRXVLQWHUQDODXGLWSURFHVVHV
$SSURYDO3URFHVV
7KHEUDQFKPDQDJHUHYDOXDWHVWKHORDQSURSRVDOEDVHGRQVXSSRUWLQJGRFXPHQWDWLRQDQGYDULRXVRWKHUIDFWRUV
7KHSULPDU\FULWHULRQIRUDSSURYDORIDORDQSURSRVDOLVEDVHGRQDUHIHUHQFHRIWKHDSSOLFDQWIURPDQH[LVWLQJ
FXVWRPHUWKHUHSRUWRIRXUEUDQFKH[HFXWLYHDQGZKHWKHUDJXDUDQWHHLVIXUQLVKHGE\WKHDSSOLFDQW,QDGGLWLRQ
RXUEUDQFKPDQDJHUVPD\DOVRFRQVLGHURWKHUIDFWRUVLQWKHDSSURYDOSURFHVVVXFKDVWKHORFDWLRQDQGWKHWLPH
SHULRGRIUHVLGHQFHSDVWUHSD\PHQWUHFRUGDQGLQFRPHVRXUFHV7KHEUDQFKPDQDJHULVDXWKRUL]HGWRDSSURYHDOO
ORDQ SURGXFWV RWKHU WKDQ VPDOO HQWHUSULVH ILQDQFH ORDQV LI WKH SURSRVDO PHHWV WKH FULWHULD HVWDEOLVKHG E\ RXU
KHDGRIILFHIRUWKHDSSURYDORIDORDQ
$SSURYDOIRUHDFKVPDOOHQWHUSULVHILQDQFHORDQLVPDGHDWWKHUHOHYDQWRIILFHXSRQWKHUHFRPPHQGDWLRQRIWKH
EUDQFKPDQDJHUDVIROORZV
VPDOOHQWHUSULVHORDQVXSWR`DUHUHIHUUHGWRWKHGLYLVLRQRIILFHIRUDSSURYDO
VPDOOHQWHUSULVHORDQVRYHU`XSWR`ODNKVDUHUHIHUUHGWRWKH]RQDORIILFHIRUDSSURYDO
VPDOO HQWHUSULVH ORDQV RYHU ` ODNKV XS WR ` ODNKV DUH UHIHUUHG WR WKH VWDWH KHDG RIILFH IRU
DSSURYDOE\WKHSURGXFWKHDGDQG
VPDOO HQWHUSULVH ORDQV RYHU ` ODNKV DUH UHIHUUHG WR WKH VWDWH KHDG RIILFH IRU DSSURYDO E\ WKH KHDG
PDQDJHPHQWWHDP
7R PLQLPL]H WKH WLPH UHTXLUHG IRU DSSURYDOV ZH FRQGXFW NQRZ\RXUFXVWRPHU SURFHGXUHV DV UHTXLUHG E\ WKH
5%,LQKRXVHXVHGHFHQWUDOL]HGDSSURYDODXWKRULW\DQGVWDQGDUGL]HGGRFXPHQWDWLRQDQGSURFHGXUHVDFURVVRXU
EXVLQHVVRXWOHWV7KHDSSOLFDQWLVLQIRUPHGRIWKHRXWFRPHRIWKHDSSURYDOSURFHVVDVZHOODVWKHDPRXQWRIORDQ
DSSURYHGWKHWHUPVDQGFRQGLWLRQVRIVXFKILQDQFLQJLQFOXGLQJWKHUDWHRILQWHUHVWDQGWKHDSSOLFDWLRQRIVXFK
LQWHUHVWGXULQJWKHWHQXUHRIWKHORDQ
'LVEXUVHPHQW
$IWHUFRQILUPLQJFRPSOHWLRQRIWKHLQLWLDOHYDOXDWLRQDQGDSSURYDOSURFHVVDORDQRIILFHUPHHWVWKHFXVWRPHUWR
H[HFXWHWKHORDQGRFXPHQWDWLRQHQVXULQJWKDWZHJDLQVHFXULW\RYHUWKHDSSOLFDEOHFROODWHUDO0DUJLQPRQH\DQG
RWKHU FKDUJHV DUH FROOHFWHG SULRU WR ORDQ GLVEXUVHPHQWV 7KH ORDQ RIILFHU YHULILHV WKH NQRZ\RXUFXVWRPHU
FKHFNOLVW ZLWK WKH ERUURZHU DQG WKH FRPSOHWHG FKHFNOLVW ZLWK LQIRUPDWLRQ LQ RXU ILOH 7KH ORDQ RIILFHU LV DOVR
UHTXLUHG WR HQVXUH WKDW WKH FRQWHQWV RI WKH ORDQ GRFXPHQWV DUH H[SODLQHG LQ GHWDLO WR WKH ERUURZHU HLWKHU LQ
(QJOLVKRULQWKHORFDOODQJXDJHRIWKHERUURZHUDQGDVWDWHPHQWWRVXFKHIIHFWLVLQFOXGHGDVSDUWRIWKHORDQ
GRFXPHQWDWLRQ7KHERUURZHULVSURYLGHGZLWKDFRS\RIWKHORDQGRFXPHQWVH[HFXWHGE\KLPRUKHUDQGWKH
ORDQRIILFHUUHWDLQVHYLGHQFHRIWKHERUURZHU¶VDFFHSWDQFHRIWKHWHUPVDQGFRQGLWLRQVRIWKHORDQDVSDUWRIWKH
ORDQGRFXPHQWDWLRQ
)RUYHKLFOH ORDQVDQGWZRZKHHOHUORDQVD FKDVVLVSULQWRIWKH YHKLFOH LVDOVRREWDLQHG DQG PDLQWDLQHGLQWKH
ORDQILOH7KHUHOHYDQW5HJLRQDO7UDQVSRUW2IILFH572HQGRUVHPHQWIRUPVDUHDOVRUHTXLUHGWREHH[HFXWHGE\
WKHERUURZHUSULRUWRWKHGLVEXUVHPHQWRIWKHORDQ
)RUJROGORDQVWKHERUURZHULVDOVRSURYLGHGDSDZQWLFNHWLQDGGLWLRQWRWKHORDQDJUHHPHQW
2XUGLVEXUVDOVDFURVVRXUYDULRXVSURGXFWVIRUWKHSHULRGVLQGLFDWHGDUHDVIROORZV
`LQODNKV
6PDOO(QWHUSULVH)LQDQFH
*ROG/RDQV
3URGXFW)LQDQFLQJ
3UHRZQHGDQGQHZYHKLFOHORDQV
3HUVRQDO/RDQV
7RWDO
)RUWKHVL[PRQWKV
)RUWKH)LQDQFLDO<HDU(QGHG
HQGHG6HSWHPEHU
0DUFK 0DUFK 0DUFK
/RDQDGPLQLVWUDWLRQDQGPRQLWRULQJ
7KH ERUURZHU DQG JXDUDQWRU LI UHTXLUHG H[HFXWHV WKH VHFXULW\ FUHDWLRQ GRFXPHQWV DQG WKH ORDQ DJUHHPHQW
VHWWLQJRXWWKHWHUPVRIWKHORDQ$ORDQUHSD\PHQW VFKHGXOHLVDWWDFKHGDVD VFKHGXOH WRWKH ORDQDJUHHPHQW
ZKLFKJHQHUDOO\VHWVRXWSHULRGLFDOUHSD\PHQWWHUPV5HSD\PHQWVDUHPDGHLQSHULRGLFDOLQVWDOOPHQWVDQGFDQEH
PDGHE\FDVKRUFKHFN/RDQVGLVEXUVHGDUHUHFRYHUHGIURPWKHERUURZHULQDFFRUGDQFHZLWKWKHORDQWHUPVDQG
FRQGLWLRQVDJUHHGZLWKWKHERUURZHU
:HWUDFNORDQUHSD\PHQWVFKHGXOHVRIRXUFXVWRPHUVRQDPRQWKO\EDVLVEDVHGRQWKHRXWVWDQGLQJWHQXUHRIWKH
ORDQV WKH QXPEHU RI LQVWDOOPHQWV GXH DQG PLVVHG SD\PHQWV LI DQ\ 7KLV GDWD LV DQDO\]HG EDVHG RQ WKH ORDQV
GLVEXUVHGDQGORFDWLRQRIWKHERUURZHU7KHRIILFLDORULJLQDWLQJWKHORDQLVUHVSRQVLEOHIRUPRQLWRULQJWKHTXDOLW\
RI WKH XQGHUO\LQJ VHFXULW\ DQGRU FROODWHUDO DQG WLPHO\ UHSD\PHQW RI ORDQV 7\SLFDOO\ WKH ORDQ RIILFLDO¶V
UHPXQHUDWLRQLVLQFHQWLYL]HGDQGOLQNHGWRWKHUHFRYHU\RISD\PHQWVIURPWKHERUURZHU
:H EHOLHYH WKDW FORVH PRQLWRULQJ RI GHEW VHUYLFLQJ HQDEOHV XV WR PDLQWDLQ KLJK UHFRYHU\ UDWLRV DQG UHVXOWDQW
DVVHWTXDOLW\2XUPRQLWRULQJSURFHVVLQYROYHVWKHIROORZLQJ
$QQXDO LQVSHFWLRQ :H KDYH D GHGLFDWHG LQVSHFWLRQ WHDP WKDW YLVLWV EXVLQHVV RXWOHWV DQG FDUULHV RXW
LQVSHFWLRQVRIUHFRUGVRQDQDQQXDOEDVLV$OOORDQVGLVEXUVHGGXULQJWKH\HDUDUHUHYLHZHGE\WKHLQVSHFWLRQ
WHDP
,QWHUQDODXGLW2XULQWHUQDODXGLWWHDPW\SLFDOO\FRYHUVRIRXUEXVLQHVVRXWOHWVRQDQDQQXDOEDVLV
+HDGRIILFHYLVLWV7KHKHDGRIILFHSHUVRQQHOSHULRGLFDOO\ YLVLWRXUEXVLQHVVRXWOHWVLQFOXGLQJGXULQJORDQ
FDPSVDQGFRQGXFWDQLQIRUPDOFKHFNRQWKHRXWOHWRSHUDWLRQV
3URSHUW\ LQVSHFWLRQ :H FDUU\ RXW SHULRGLFDO LQVSHFWLRQV RI VHFXUHG SURSHUW\ ERWK EHIRUH DQG DIWHU
GLVEXUVHPHQWV
,QVSHFWLRQE\6WDWXWRU\$XGLWRU2XUVWDWXWRU\DXGLWRUDOVRFDUULHVRXWDQDXGLWRIVWUDWHJLFEXVLQHVVRXWOHWV
RQ D UDQGRP EDVLV HDFK \HDU WR FKHFN WKH HIILFDF\ RI WKH FUHGLW DSSUDLVDO DQG OHQGLQJ SURFHVV DQG RWKHU
LQWHUQDOFRQWUROV
&ROOHFWLRQDQG5HFRYHU\
:H EHOLHYH WKDW RXU ORDQ UHFRYHU\ SURFHGXUH LV SDUWLFXODUO\ ZHOOVXLWHG WR RXU WDUJHW PDUNHW IRU HDFK RI RXU
SURGXFWV 7KH HQWLUH FROOHFWLRQ RSHUDWLRQ LV DGPLQLVWHUHG LQKRXVH WKURXJK RXU EUDQFK RIILFLDOV :H GR QRW
RXWVRXUFHORDQUHFRYHU\RUFROOHFWLRQRSHUDWLRQV,QFDVHRIGHIDXOWWKHUHDVRQVIRUWKHGHIDXOWDUHLGHQWLILHGE\
WKH RIILFHU UHVSRQVLEOH IRU HDFK ORDQ DQG DSSURSULDWH DFWLRQ LV LQLWLDWHG VXFK DV UHTXLULQJ SDUWLDO UHSD\PHQW
DQGRUVHHNLQJDGGLWLRQDOJXDUDQWHHVRUFROODWHUDO
,QWKHHYHQWRIDGHIDXOWRQWKUHHORDQLQVWDOOPHQWSD\PHQWVWKHUHOHYDQWRIILFHULVUHTXLUHGWRPDNHDSHUVRQDO
YLVLW WR WKH ERUURZHU WR GHWHUPLQH WKH JUDYLW\ RI WKH ORDQ UHFRYHU\ SUREOHP :H PD\ LQLWLDWH WKH SURFHVV IRU
UHSRVVHVVLRQ RI WKH XQGHUO\LQJ DVVHW DQG HQIRUFHPHQW RI WKH FKDUJH LI UHTXLUHG 2XU RIILFHUV DUH WUDLQHG WR
UHSRVVHVV DVVHWV DQGRU HQIRUFH WKH VHFXULW\ LQWHUHVW DQG QR H[WHUQDO DJHQF\ LV LQYROYHG LQ VXFK SURFHVVHV
5HSRVVHVVHG DVVHWV DUH KHOG DW GHVLJQDWHG VHFXUHG IDFLOLWLHV IRU HYHQWXDO GLVSRVDO 7KH QRWLFH WR WKH ERUURZHU
VSHFLILHVWKHRXWVWDQGLQJDPRXQWWREHSDLGZLWKLQDVSHFLILHGSHULRGIDLOLQJZKLFKWKHDVVHWPD\EHGLVSRVHGRI
DQGRU WKH FKDUJH HQIRUFHG ,Q WKH HYHQW WKHUH LV D VKRUW IDOO LQ WKH UHFRYHU\ RI WKH RXWVWDQGLQJ DPRXQW IURP
HQIRUFHPHQWRIWKHFKDUJHOHJDOSURFHHGLQJVDJDLQVWWKHERUURZHUPD\EHLQLWLDWHG
$VVHW4XDOLW\
:H PDLQWDLQ RXU DVVHW TXDOLW\ WKURXJK WKH HVWDEOLVKPHQW RI SUXGHQW FUHGLW QRUPV WKH DSSOLFDWLRQ RI VWULQJHQW
FUHGLW HYDOXDWLRQ WRROV OLPLWLQJ FXVWRPHU DQG VHFXULW\ H[SRVXUH DQG GLUHFW LQWHUDFWLRQ ZLWK FXVWRPHUV ,Q
DGGLWLRQWRRXUFUHGLWHYDOXDWLRQDQGUHFRYHU\PHFKDQLVPRXUODUJHO\DVVHWEDFNHGOHQGLQJPRGHODQGDGHTXDWH
DVVHWFRYHUKDVKHOSHGPDLQWDLQORZJURVVDQGQHW13$OHYHOV2XUKLVWRULFDO1HW$VVHWVXQGHU0DQDJHPHQWIRU
HDFKVHJPHQWDQG1HW13$VRIRXUEXVLQHVVKDYHEHHQDVIROORZV
(` LQODNKV
1HW$VVHWVXQGHU0DQDJHPHQW
3URGXFW)LQDQFH/RDQV
9HKLFOH/RDQV
$VRI6HSWHPEHU
$VRI0DUFK
3HUVRQDO/RDQV
/RDQV$JDLQVW*ROG
6PDOO(QWHUSULVH)LQDQFH6HJPHQW/RDQV
+RXVLQJ)LQDQFH/RDQV
2WKHU$VVHWV
1HW1RQ3HUIRUPLQJ$VVHWV
$VRI6HSWHPEHU
$VRI0DUFK
&ODVVLILFDWLRQRI$VVHWV
7KH 1RQ%DQNLQJ )LQDQFLDO 'HSRVLW $FFHSWLQJ RU +ROGLQJ &RPSDQLHV 3UXGHQWLDO 1RUPV 5HVHUYH %DQN
'LUHFWLRQV DV DPHQGHG WKH ³3UXGHQWLDO 1RUPV´ DQG WKH 1RQ%DQNLQJ )LQDQFLDO &RPSDQLHV
$FFHSWDQFH RI 3XEOLF 'HSRVLWV 5HVHUYH %DQN 'LUHFWLRQV DV DPHQGHG WKH ³3XEOLF 'HSRVLWV
'LUHFWLRQV´SURYLGHVWDQGDUGVIRUDVVHWFODVVLILFDWLRQWUHDWPHQWRI13$VDQGSURYLVLRQLQJDJDLQVW13$VIRU
GHSRVLWWDNLQJ1%)&VLQ,QGLD$QDVVHWLVWHUPHGDVDQ13$LILQWHUHVWRULQVWDOOPHQWVRIWKHSULQFLSDODPRXQW
UHPDLQRYHUGXHIRUDSHULRGRIVL[PRQWKVRUPRUH2XU&RPSDQ\OLNHRWKHUGHSRVLWWDNLQJ1%)&VLVUHTXLUHG
WR FODVVLI\ OHDVH DQG KLUH SXUFKDVH DVVHWV ORDQV DGYDQFHV DQG RWKHU IRUPV RI FUHGLW LQWR YDULRXV FODVVHV 7KH
UHOHYDQW5%,JXLGHOLQHVIRUDVVHWFODVVLILFDWLRQDUHVHWIRUWKEHORZ
6WDQGDUGDVVHWV$QDVVHWLQUHVSHFWRIZKLFKQRGHIDXOWLQUHSD\PHQWRISULQFLSDORUSD\PHQWRILQWHUHVWLV
SHUFHLYHG DQG ZKLFK GRHV QRW GLVFORVH DQ\ SUREOHP QRU FDUU\ PRUH WKDQ QRUPDO ULVN DWWDFKHG WR WKH
EXVLQHVV
6XEVWDQGDUGDVVHWV$QDVVHWZKLFKKDVEHHQFODVVLILHGDVDQ13$IRUDSHULRGQRWH[FHHGLQJPRQWKVRU
ZKHUHWKHWHUPVRIWKHDJUHHPHQWUHJDUGLQJLQWHUHVWDQGRUSULQFLSDOKDYHEHHQUHQHJRWLDWHGRUUHVFKHGXOHG
RUUHVWUXFWXUHGDIWHUFRPPHQFHPHQWRIRSHUDWLRQVXQWLOWKHH[SLU\RIRQH\HDURIVDWLVIDFWRU\SHUIRUPDQFH
XQGHUWKHUHQHJRWLDWHGRUUHVFKHGXOHGWHUPV
'RXEWIXODVVHWV$QDVVHWZKLFKUHPDLQVDVXEVWDQGDUGDVVHWIRUDSHULRGH[FHHGLQJPRQWKV
/RVV DVVHWV D $Q DVVHW ZKLFK KDV EHHQ LGHQWLILHG DV ORVV DVVHW E\ WKH 1%)& RU LWV LQWHUQDO RU H[WHUQDO
DXGLWRU RU E\ WKH 5%, GXULQJ WKH LQVSHFWLRQ RI WKH 1%)& WR WKH H[WHQW WKDW LW LV QRW ZULWWHQ RII E\ WKH
1%)&DQGEDQDVVHWZKLFKLVDGYHUVHO\DIIHFWHGE\DSRWHQWLDOWKUHDWRIQRQUHFRYHUDELOLW\GXHWRHLWKHU
HURVLRQLQWKHYDOXHRIVHFXULW\RUQRQDYDLODELOLW\RIVHFXULW\RUGXHWRDQ\IUDXGXOHQWDFWRURPLVVLRQRQ
WKHSDUWRIWKHERUURZHU
2XU $XGLW &RPPLWWHH KDV FRQVWLWXWHG D SROLF\ IRU PDNLQJ SURYLVLRQV LQ H[FHVV RI WKH DPRXQWV SUHVFULEHG E\
5%,DQGZHPD\PDNHIXUWKHUSURYLVLRQVLIZHGHWHUPLQHWKDWLWLVSUXGHQWIRUDNQRZQDQGLGHQWLILHGULVN:H
FXUUHQWO\PDNHSURYLVLRQVDVIROORZV
'HOLQTXHQF\OHYHO±$VGHILQHGE\WKHPDQDJHPHQW
$VVHWVLQUHVSHFWRIZKLFKWKHUHDUHQRGHIDXOWLQUHSD\PHQWRU
DVVHWV IRU ZKLFK WKH GXHV LI DQ\ GRHV QRW H[FHHG RYHUGXH GD\V
13$0RQWKVLVJUHDWHUWKDQPRQWKVDQGLVOHVVWKDQRUHTXDOWR
PRQWKV
13$0RQWKVLVJUHDWHUWKDQPRQWKVDQGLVOHVVWKDQRUHTXDO
WRPRQWKV
13$ 0RQWKV LV JUHDWHU WKDQ PRQWKV DQG LV OHVV WKDQ RU
HTXDOWRPRQWKV
13$0RQWKVLVJUHDWHUWKDQPRQWKV
0LQLPXP3URYLVLRQLQJ3ROLF\
1,/
RIWKHWRWDORXWVWDQGLQJ
RI WKH XQVHFXUHG SRUWLRQ DQG RI WKH
VHFXUHGSRUWLRQRIWKHORDQ
RI WKH XQVHFXUHGSRUWLRQ DQG RI WKH
VHFXUHGSRUWLRQRIWKHORDQ
RIWKHWRWDORXWVWDQGLQJ
%DVHGRQRXUSROLF\RXUSURYLVLRQVDVRI6HSWHPEHUDQGDVRI0DUFKZHUH `ODNKV
DQG`ODNKVUHVSHFWLYHO\
2XU ZULWHRIIV ZHUH ` ODNKV DQG ` ODNKV DV RI 6HSWHPEHU DQG 0DUFK UHVSHFWLYHO\:HPDGHDWRWDOSURYLVLRQLQFOXGLQJLQFRPHUHYHUVDOVRI `ODNKVDQG `ODNKV
DVRI6HSWHPEHUDQG0DUFKUHVSHFWLYHO\2XUFRYHUDJHUDWLRDVRI6HSWHPEHUDQG
0DUFKDQGZDVDQGUHVSHFWLYHO\'HWDLOVRISURYLVLRQVDQG
DPRXQWVZULWWHQRIIDVRIWKHVSHFLILHGGDWHVDUHVHWRXWLQWKHWDEOHEHORZ
*URVV13$V`LQODNKV
3URYLVLRQV`LQODNKV
1HW13$V`LQODNKV
7RWDO/RDQ$VVHWV`LQODNKV
*URVV13$WR7RWDO/RDQ$VVHWV
1HW13$WR1HW/RDQ$VVHWV
&RYHUDJH5DWLR
$VRI6HSWHPEHU
$VRI0DUFK
:HEHOLHYHWKDWRXUHYHQWXDOZULWHRIIVDUHUHODWLYHO\ORZEHFDXVHRIRXUUHODWLRQVKLSEDVHGFXVWRPHURULJLQDWLRQ
DQG FXVWRPHU VXSSRUW SUXGHQW ORDQ DSSURYDO SURFHVVHV LQFOXGLQJ DGHTXDWH FROODWHUDO EHLQJ REWDLQHG DQG RXU
DELOLW\WRUHDOL]HVXFKFROODWHUDOLQDWLPHO\PDQQHU
7UHDVXU\2SHUDWLRQV
2XU WUHDVXU\ RSHUDWLRQV KHOS XV PHHW RXU IXQGLQJ UHTXLUHPHQWV DQG PDQDJH VKRUWWHUP VXUSOXVHV :H KDYH
PXOWLSOHVRXUFHVRIIXQGVLQRUGHUWRUHGXFHRXUIXQGLQJFRVWVSURWHFWLQWHUHVWPDUJLQVDQGPDLQWDLQDGLYHUVH
IXQGLQJSRUWIROLR7KLVHQDEOHVXVWRDFKLHYHIXQGLQJVWDELOLW\DQGOLTXLGLW\2XUVRXUFHVRIIXQGLQJLQFOXGHWHUP
ORDQV IURP EDQNV DQG ILQDQFLDO LQVWLWXWLRQV FDVK FUHGLW IURP EDQNV UHGHHPDEOH QRQFRQYHUWLEOH GHEHQWXUHV
WKURXJKSXEOLFRIIHUDQGRQDSULYDWHSODFHPHQWEDVLVVXERUGLQDWHGERQGVVKRUWWHUPFRPPHUFLDOSDSHUSXEOLF
GHSRVLWV DQG LQWHUFRUSRUDWH GHSRVLWV :H KDYH DSSRLQWHG 6KULUDP )LQDQFLDO 3URGXFWV 6ROXWLRQV &KHQQDL
3ULYDWH /LPLWHG DQG 6KULUDP )RUWXQH 6ROXWLRQV /LPLWHG WR DVVLVW XV LQ RXU RQJRLQJ SULYDWH SODFHPHQW RI
GHEHQWXUHV FDSLWDO LQWURGXFWLRQ DQG PRELOL]DWLRQ RI GHSRVLWV SXUVXDQW WR 6HUYLFH $JUHHPHQWV GDWHG -XO\ DQG-DQXDU\UHVSHFWLYHO\
:HEHOLHYHWKDWZHKDYHGHYHORSHGVWDEOHORQJWHUPUHODWLRQVKLSVZLWKRXUOHQGHUVDQGHVWDEOLVKHGDWUDFNUHFRUG
RIWLPHO\VHUYLFLQJRIRXUGHEWV:HEHOLHYHWKDWRXUHVWDEOLVKHGWUDFNUHFRUGRIWLPHO\GHEWUHSD\PHQWVWURQJ
EUDQG HTXLW\ FUHGLW UDWLQJV DQG ULVN PDQDJHPHQW KDYH DOORZHG XV WR VHFXUH DWWUDFWLYH LQWHUHVW UDWHV RQ RXU
IXQGLQJVRXUFHV+LVWRULFDOO\ZHKDYHEHHQDEOHWRVHFXUHIL[HGUDWHORQJWHUPORDQVRIWKUHHWRILYH\HDUVWHQXUH
WRVWDELOL]HRXUFRVWRIERUURZLQJV
2XUWUHDVXU\GHSDUWPHQWXQGHUWDNHVOLTXLGLW\PDQDJHPHQWE\VHHNLQJWRPDLQWDLQDQRSWLPXPOHYHORIOLTXLGLW\
DQGFRPSO\LQJZLWKWKH5%,¶VUHTXLUHPHQWVIRUDVVHWDQGOLDELOLW\PDQDJHPHQW2XUREMHFWLYHLVWRHQVXUHWKH
VPRRWKIXQFWLRQLQJRIRXUEXVLQHVVDQGDWWKHVDPHWLPHDYRLGKROGLQJH[FHVVLYHFDVK2XUWUHDVXU\PDLQWDLQVD
EDODQFHEHWZHHQLQWHUHVWHDUQLQJOLTXLGDVVHWVDQGFDVKWRRSWLPL]HHDUQLQJV:HDFWLYHO\PDQDJHRXUFDVKDQG
IXQGVIORZ XVLQJYDULRXVFDVK PDQDJHPHQW VHUYLFHVSURYLGHGE\EDQNV $VSDUWRIRXUWUHDVXU\DFWLYLWLHV ZH
DOVR LQYHVW RXU VXUSOXV IXQGV LQ IL[HG GHSRVLWV ZLWK EDQNV OLTXLG GHEWEDVHG PXWXDO IXQGV DQG JRYHUQPHQW
VHFXULWLHV$OORIRXULQYHVWPHQWVDUHPDGHLQDFFRUGDQFHZLWKWKHLQYHVWPHQWSROLF\DSSURYHGE\RXU%RDUG
7KHIROORZLQJWDEOHVHWVIRUWKWKHSULQFLSDOFRPSRQHQWVRIRXUVHFXUHGORDQVDVRIWKHGDWHVLQGLFDWHG
`LQODNKV
/RQJ7HUP%RUURZLQJV
5HGHHPDEOH1RQFRQYHUWLEOH
'HEHQWXUHVUHWDLOSULYDWH
SODFHPHQW
1RQFRQYHUWLEOH'HEHQWXUHV
LQVWLWXWLRQDOSULYDWHSODFHPHQW
5HGHHPDEOH1RQFRQYHUWLEOH
'HEHQWXUHVSXEOLFLVVXH
7HUP/RDQVIURP%DQNV
7HUP/RDQVIURP)LQDQFLDO
,QVWLWXWLRQV
7RWDOD
6KRUW7HUP%RUURZLQJV
$VRI6HSWHPEHU
$VRI0DUFK
7HUP/RDQVIURP%DQNV
7HUP/RDQVIURP)LQDQFLDO
,QVWLWXWLRQV
&DVK&UHGLWIURP%DQNV
:RUNLQJ&DSLWDO'HPDQG/RDQV
IURP%DQNV
7RWDOE
7RWDODE
$VRI6HSWHPEHU
$VRI0DUFK
7KHIROORZLQJWDEOHVHWVIRUWKWKHSULQFLSDOFRPSRQHQWVRIRXUXQVHFXUHGORDQVDVRIWKHGDWHVLQGLFDWHG
`LQODNKV
/RQJ7HUP%RUURZLQJV
)L[HG'HSRVLWV
6XERUGLQDWHGGHEWERQGV
7RWDOD
6KRUW7HUP%RUURZLQJV
)L[HG'HSRVLWV
&RPPHUFLDO3DSHU
,QWHUFRUSRUDWH'HSRVLWV
7RWDOE
7RWDODE
$VRI6HSWHPEHU
$VRI0DUFK
:HJHQHUDWHSURILWIURPWKH GLIIHUHQFHEHWZHHQWKH LQWHUHVWUDWHVRQRXULQWHUHVWHDUQLQJDVVHWVZKLFKDUHWKH
ORDQVZHH[WHQGDQGLQWHUHVWEHDULQJOLDELOLWLHVZKLFKDUHRXUERUURZLQJV7KHDYHUDJHFRVWRIERUURZLQJVIRU
WKHGDWHVLQGLFDWHGLVVHWRXWEHORZ
2XU&RPSDQ\
6HSWHPEHU
)LQDQFLDO<HDU
:H DUH UHJLVWHUHG DV D GHSRVLWWDNLQJ 1%)& ZLWK WKH 5%, ZKLFK DXWKRUL]HV XV WR DFFHSW GHSRVLWV IURP WKH
SXEOLF:HGRQRWKRZHYHUGHSHQGRQGHSRVLWVDVRXUSULPDU\VRXUFHRIIXQGLQJ$VRI 6HSWHPEHU
DQG0DUFKZHKDGIL[HGGHSRVLWVRXWVWDQGLQJRI `ODNKVDQG`ODNKVZKLFKFRQVWLWXWHG
DQGUHVSHFWLYHO\RIRXUWRWDOERUURZLQJVDVRIVXFKGDWHV
3XUVXDQW WR D 6(%, FLUFXODU GDWHG 6HSWHPEHU PXWXDO IXQGV DUH UHTXLUHG WR HQVXUH WKDW WKH WRWDO
H[SRVXUHRIGHEWVFKHPHVRIPXWXDOIXQGVLQDSDUWLFXODUVHFWRUVKDOOQRWH[FHHGRIWKHQHWDVVHWVRIWKH
VFKHPH ZLWK HIIHFW IURP 2FWREHU )XUWKHU VFKHPHV H[LVWLQJ SULRU WR 2FWREHU DUH UHTXLUHG WR
FRPSO\ ZLWK WKLV UHTXLUHPHQW ZLWKLQ RQH \HDU IURP 6HSWHPEHU DQG DUH SURKLELWHG IURP IXUWKHU
LQFUHDVLQJWKHH[SRVXUHGXULQJWKLVRQH\HDUSHULRGLIVXFKH[SRVXUHLVDOUHDG\DERYH7KLVVKDOOUHVWULFWRXU
DELOLW\WRUDLVHIXQGVE\LVVXDQFHRIGHEWVHFXULWLHVWRPXWXDOIXQGV,QDGGLWLRQUHFHQWUHJXODWRU\FKDQJHVPD\
OHDG WR DQ LQFUHDVH LQ RXU LQWHUHVW FRVWV )RU LQVWDQFH LQ WHUPV RI WKH 5%, FLUFXODU GDWHG 0D\ ORDQV
H[WHQGHGE\FRPPHUFLDOEDQNVWR1%)&VDIWHU$SULODUHQRORQJHUUHFRJQL]HGDVSULRULW\VHFWRUORDQV
3ULRUWRWKLVZHFRXOGDYDLORIIDYRXUDEOHLQWHUHVWUDWHVIURPFRPPHUFLDOEDQNVIRUORDQVDYDLOHGIRUWKHSXUSRVH
RI RQOHQGLQJ WR SULRULW\ VHFWRUV DV RXU QHWZRUN RI UXUDO DQG VHPL XUEDQ FXVWRPHU EDVH IDFLOLWDWHG WKH
FRPPHUFLDOEDQNVLQPHHWLQJWKHLUSULRULW\VHFWRUOHQGLQJUHTXLUHPHQWV 6HH³5LVN)DFWRUV²5HFHQWUHYLVLRQV
WR SULRULW\ VHFWRU OHQGLQJ UHTXLUHPHQWV DGKHUHG WR E\ EDQNV PD\ LQFUHDVH RXU FRVW RI IXQGLQJ DQG DGYHUVHO\
DIIHFWRXUEXVLQHVVUHVXOWVRIRSHUDWLRQVDQGILQDQFLDOFRQGLWLRQ´
6HFXULWL]DWLRQDQGDVVLJQPHQWRIRXUSRUWIROLRDJDLQVWILQDQFLQJDFWLYLWLHV
:HKDYHKLVWRULFDOO\XQGHUWDNHQVHFXULWL]DWLRQDQGDVVLJQPHQWWUDQVDFWLRQVWRHIILFLHQWO\XWLOL]HRXUFDSLWDODQG
DV D FRVW HIIHFWLYH VRXUFH RI IXQGV +RZHYHU DV IXUWKHU GLVFXVVHG EHORZ UHFHQW UHJXODWRU\ FKDQJHV KDYH
DGYHUVHO\ DIIHFWHG RXU DELOLW\ WR XQGHUWDNH DVVLJQPHQW WUDQVDFWLRQV :H FXUUHQWO\ VHOO SDUW RI RXU DVVHWV IURP
WLPH WR WLPH XQGHU ILQDQFLQJ DFWLYLWLHV WKURXJK VHFXULWL]DWLRQ WUDQVDFWLRQV 2XU VHFXULWL]DWLRQ WUDQVDFWLRQV
LQYROYH SURYLVLRQ RI DGGLWLRQDO FROODWHUDO DQG GHSRVLWV RU EDQN JXDUDQWHHV $V RI 6HSWHPEHU DQG
ILQDQFLDO\HDURXUWRWDOERRNYDOXHRI/RDQ$VVHWVVHFXULWL]HGZDV `ODNKVDQG `
ODNKV DQG RXU WRWDO ERRN YDOXH RI /RDQ $VVHWV DVVLJQHG ZDV ` ODNKV DQG ` ODNKV
UHVSHFWLYHO\
:H FRQWLQXH WR SURYLGH DGPLQLVWUDWLRQ VHUYLFHV IRU WKH VHFXULWL]HG DQG DVVLJQHG SRUWIROLR WKH H[SHQVHV IRU
ZKLFKDUHSURYLGHGIRUDWWKHRXWVHWRIHDFKWUDQVDFWLRQ7KHJDLQVDULVLQJRXWRIVHFXULWL]DWLRQDQGDVVLJQPHQW
ZKLFKYDU\DFFRUGLQJWRDQXPEHURIIDFWRUVVXFKDVWKHWHQXUHRIWKHVHFXULWL]HGRUDVVLJQHGSRUWIROLRWKH\LHOG
RQWKHSRUWIROLRVHFXULWL]HGRUDVVLJQHGDQGWKHGLVFRXQWLQJUDWHDSSOLHGDUHWUHDWHGDVLQFRPHRYHUWKHWHQXUHRI
DJUHHPHQWVDVSHU5%,JXLGHOLQHVRQVHFXULWL]DWLRQRIVWDQGDUGDVVHWV/RVVLIDQ\LVUHFRJQL]HGXSIURQW
7KHIROORZLQJWDEOHVVHWIRUWKFHUWDLQLQIRUPDWLRQZLWKUHVSHFWWRRXUVHFXULWL]DWLRQDQGDVVLJQPHQWWUDQVDFWLRQV
IRUWKHSHULRGVLQGLFDWHG
`LQODNKV
7RWDOQXPEHURI/RDQ$VVHWV
VHFXULWL]HGDVVLJQHG
7RWDOERRNYDOXHRI/RDQ$VVHWV
VHFXULWL]HGDVVLJQHG
6DOHFRQVLGHUDWLRQUHFHLYHGIRU
VHFXULWL]HGDVVLJQHGDVVHWV
*DLQRQDFFRXQWRI
VHFXULWL]DWLRQDVVLJQPHQW
6HSWHPEHU
)LQDQFLDO<HDU
:HDUHUHTXLUHGWRSURYLGHFUHGLWHQKDQFHPHQWIRUWKHVHFXULWL]DWLRQWUDQVDFWLRQVE\ZD\RIHLWKHUIL[HGGHSRVLWV
RU EDQN JXDUDQWHHV DQG WKH DJJUHJDWH FUHGLW HQKDQFHPHQW DPRXQW RXWVWDQGLQJ IRU VHFXULWL]DWLRQV DV RI
6HSWHPEHU ZDV ` ODNKV 7KH DJJUHJDWH FUHGLW HQKDQFHPHQW DPRXQW RXWVWDQGLQJ IRU OHJDF\
DVVLJQPHQW WUDQVDFWLRQV DV RI 6HSWHPEHU ZDV ` ODNKV ,Q WKH HYHQW D UHOHYDQW EDQN RU
LQVWLWXWLRQ GRHV QRW UHDOL]H WKH UHFHLYDEOHV GXH XQGHU WKH VHFXUHG RU DVVLJQHG /RDQ $VVHWV VXFK EDQN RU
LQVWLWXWLRQZRXOGKDYHUHFRXUVHWRWKHFUHGLWHQKDQFHPHQW
5HFHQW UHJXODWRU\ FKDUJHV KDYH DGYHUVHO\ DIIHFWHG RXU DELOLW\ WR XQGHUWDNH DVVLJQPHQW DQG VHFXULWLVDWLRQ
WUDQVDFWLRQV 7KH 5%, LVVXHG UHYLVHG µ*XLGHOLQHV RQ 6HFXULWLVDWLRQ RI 6WDQGDUG $VVHWV¶ WKH ³5HYLVHG
6HFXULWLVDWLRQ *XLGHOLQHV´ WR EDQNV ZKLFK ZHUH PDGH DSSOLFDEOH WR 1%)&V E\ WKH 5%, WKURXJK LWV FLUFXODU
GDWHG$XJXVW7KH5HYLVHG*XLGHOLQHVUHJXODWHDVVLJQPHQWWUDQVDFWLRQVZKLFKZHUHQRWFRYHUHGXQGHU
WKHHDUOLHUJXLGHOLQHVLVVXHGE\WKH5%,7KH5HYLVHG*XLGHOLQHVLPSRVHDUHVWULFWLRQRQWKHRIIHULQJRIFUHGLW
HQKDQFHPHQWLQDQ\IRUPDQGOLTXLGLW\IDFLOLWLHVLQWKHFDVHRIORDQWUDQVIHUVWKURXJKGLUHFWDVVLJQPHQWRIFDVK
IORZV7KLVUHJXODWRU\FKDQJHKDVGLVFRXUDJHGLQYHVWRUV IURPHQWHULQJLQWRDVVLJQPHQW WUDQVDFWLRQVDQGDVD
UHVXOWRXUDELOLW\WRUDLVHIXQGVIURPDVVLJQPHQWWUDQVDFWLRQVKDVEHHQDGYHUVHO\DIIHFWHG
)XUWKHU WKH 5HYLVHG *XLGHOLQHV SURYLGH WKDW ORDQV FDQ RQO\ EH DVVLJQHG RU VHFXULWLVHG LI WKH 1%)& KDV KHOG
WKHP LQ WKHLU ERRNV IRU D VSHFLILHG PLQLPXP SHULRG 7KH\ DOVR SURYLGH D PDQGDWRU\ UHWHQWLRQ UHTXLUHPHQW
³055´IRUVHFXULWLVDWLRQDQGDVVLJQPHQWWUDQVDFWLRQV)RUVHFXULWLVDWLRQWKH055LVLQWKHIRUPRIPLQLPXP
HTXLW\ FRQWULEXWLRQ LQ WKH VSHFLDO SXUSRVH YHKLFOH FUHDWHG IRU WKH SXUSRVH RI VHFXULWLVDWLRQ ZKHUHDV LQ FDVH RI
DVVLJQPHQWWUDQVDFWLRQV055LVLQWKHIRUPRIWKHULJKWWRUHFHLYHFDVKIORZVIURPWKHDVVHWVWUDQVIHUUHG6HH
³5LVN)DFWRUV²5HFHQWGHYHORSPHQWVLQWKHUHJXODWRU\HQYLURQPHQWFRQFHUQLQJDVVLJQPHQWDQGVHFXULWL]DWLRQ
WUDQVDFWLRQVZLWKUHVSHFWWRUHFHLYDEOHVRIRXUORDQSRUWIROLRFRXOGDGYHUVHO\DIIHFWRXUDELOLW\WRVHFXUHIXQGLQJ
DQGRXUUHVXOWVRIRSHUDWLRQVDQGILQDQFLDOFRQGLWLRQ´
&DSLWDO$GHTXDF\
:HDUHVXEMHFWWRFDSLWDODGHTXDF\UHTXLUHPHQWVVHWRXWE\WKH 5%,IRUV\VWHPLFDOO\LPSRUWDQWGHSRVLWWDNLQJ
1%)&VZKLFKFXUUHQWO\UHTXLUHXVWRPDLQWDLQDFDSLWDODGHTXDF\UDWLRFRQVLVWLQJRI7LHU,DQG7LHU,,FDSLWDORI
QRW OHVV WKDQ RI RXU DJJUHJDWH ULVN ZHLJKWHG DVVHWV RQ EDODQFH VKHHW DQG RI ULVN DGMXVWHG YDOXH RI RII
EDODQFHVKHHWLWHPV2XUFDSLWDODGHTXDF\UDWLRVZHUHDQGDVRI0DUFK
DQG UHVSHFWLYHO\ ,QIRUPDWLRQ UHODWHG WR RXU FDSLWDO DGHTXDF\ UDWLR RQ DQ XQFRQVROLGDWHG EDVLV DQG WKH
FDSLWDODGHTXDF\UDWLRUHTXLUHGE\5%,IRUWKHGDWHVVSHFLILHGDUHVHWRXWEHORZ
`LQODNKV
(OLJLEOH7LHU,&DSLWDO
(OLJLEOH7LHU,,&DSLWDO
7RWDO&DSLWDO
7RWDO5LVNZHLJKWHG$VVHWV
&DSLWDO$GHTXDF\5DWLR
&DSLWDO$GHTXDF\5DWLRUHTXLUHGE\5%,
$VRI0DUFK
&UHGLW5DWLQJ
7KHIROORZLQJWDEOHVHWVIRUWKFHUWDLQLQIRUPDWLRQZLWKUHVSHFWWRRXUFUHGLWUDWLQJV
&UHGLW5DWLQJ$JHQF\
,QVWUXPHQWV
5DWLQJV
/LPLWLQ`ODNKV
&$5(
1&'
&$5($$
&$5(
6KRUW7HUP'HEW
&$5($
&$5(
)L[HG'HSRVLW
&$5($$)'
&$5(
6XE'HEW
&$5($$
&5,6,/
1&'
&5,6,/$$67$%/(
&5,6,/
6KRUW7HUP'HEW
&5,6,/$
&5,6,/
)L[HG'HSRVLW
)$$67$%/(
&5,6,/
6XE'HEW
&5,6,/$$67$%/(
,QGLD5DWLQJV
1&'
,1'$$
,QGLD5DWLQJV
%DQN/RDQ
,1'$$
,QGLD5DWLQJV
6KRUW7HUP'HEW
,1'$
,QGLD5DWLQJV
)L[HG'HSRVLW
,1'W$$
5LVN0DQDJHPHQW
:HKDYHGHYHORSHGDVWURQJULVNDVVHVVPHQWPRGHOLQRUGHUWRPDLQWDLQDGHTXDWHDVVHWTXDOLW\7KHNH\ULVNV
DQGULVNPLWLJDWLRQSULQFLSOHVZHDSSO\WRDGGUHVVWKHVHULVNVDUHVXPPDUL]HGEHORZ
,QWHUHVW5DWH5LVN
2XU UHVXOWV RI RSHUDWLRQV DUH GHSHQGHQW XSRQ WKH OHYHO RI RXU QHW LQWHUHVW PDUJLQV 1HW LQWHUHVW LQFRPH LV WKH
GLIIHUHQFH EHWZHHQ RXU LQWHUHVW LQFRPH DQG LQWHUHVW H[SHQVH 2XU QHW LQWHUHVW LQFRPH DV D SHUFHQWDJH RI WRWDO
LQFRPH IRU WKH VL[ PRQWKV HQGHG 6HSWHPEHU DQG ILQDQFLDO \HDUV DQG ZDV DQGUHVSHFWLYHO\
6LQFH RXU EDODQFH VKHHW FRQVLVWV RI UXSHH DVVHWV DQG SUHGRPLQDQWO\ UXSHH OLDELOLWLHV PRYHPHQWV LQ GRPHVWLF
LQWHUHVWUDWHVFRQVWLWXWHWKHSULPDU\VRXUFHRILQWHUHVWUDWHULVN:HDVVHVVDQGPDQDJHWKHLQWHUHVWUDWHULVNRQ
RXUEDODQFHVKHHWWKURXJKWKHSURFHVVRIDVVHWOLDELOLW\PDQDJHPHQW:HERUURZIXQGVDWIL[HGDQGIORDWLQJUDWHV
RILQWHUHVWZKLOHZHH[WHQGFUHGLWDWIL[HGUDWHV
:HEHOLHYHZHKDYHGHYHORSHGVWDEOHORQJWHUPUHODWLRQVKLSVZLWKRXUOHQGHUVDQGHVWDEOLVKHGDWUDFNUHFRUGRI
WLPHO\VHUYLFLQJRXUGHEWV7KLVKDVHQDEOHGXVWREHFRPHDSUHIHUUHGFXVWRPHUZLWKPRVWRIWKHPDMRUEDQNV
DQGILQDQFLDOLQVWLWXWLRQVZLWKZKRPZHGREXVLQHVV0RUHRYHURXUFUHGLWHYDOXDWLRQFDSDELOLWLHVHQDEOHXVWR
LQYHVW LQ JRRG TXDOLW\ DVVHWV ZLWK VWDEOH DWWUDFWLYH \LHOGV 6RPH RI RXU ORDQV DUH FODVVLILHG DV SULRULW\ VHFWRU
DVVHWVE\WKH5%,ZKLFKZKHQVHFXULWL]HGILQGDUHDG\PDUNHWZLWKYDULRXVILQDQFLDOLQVWLWXWLRQVLQFOXGLQJRXU
OHQGHUV
/LTXLGLW\5LVN
/LTXLGLW\ ULVN DULVHV GXH WR QRQDYDLODELOLW\ RI DGHTXDWH IXQGV RU QRQDYDLODELOLW\ RI DGHTXDWH IXQGV DW DQ
DSSURSULDWHFRVWRURIDSSURSULDWHWHQXUHWRPHHWRXUEXVLQHVVUHTXLUHPHQWV7KLVULVNLVPLQLPL]HGWKURXJKD
PL[RIVWUDWHJLHVLQFOXGLQJDVVHWVHFXULWL]DWLRQDVVLJQPHQWDQGWHPSRUDU\DVVHWOLDELOLW\JDS
:HPRQLWRUOLTXLGLW\ULVNWKURXJKRXU$VVHW/LDELOLW\0DQDJHPHQW³$/0´IXQFWLRQZLWKWKHKHOSRIOLTXLGLW\
JDS UHSRUWV 7KLV LQYROYHV WKH FDWHJRUL]DWLRQ RI DOO DVVHWV DQG OLDELOLWLHV LQWR GLIIHUHQW PDWXULW\ SURILOHV DQG
HYDOXDWLQJWKHVHLWHPVIRUDQ\PLVPDWFKHVLQDQ\SDUWLFXODUPDWXULWLHVHVSHFLDOO\LQWKHVKRUWWHUP2XU$/0
SROLF\ FDSV WKH PD[LPXP PLVPDWFKHV LQ WKH YDULRXV PDWXULWLHV LQ OLQH ZLWK 5%, JXLGHOLQHV DQG $/&2
JXLGHOLQHV
7R DGGUHVV OLTXLGLW\ ULVN ZH KDYH GHYHORSHG H[SHUWLVH LQ PRELOL]LQJ ORQJWHUP DQG VKRUWWHUP IXQGV DW
FRPSHWLWLYH LQWHUHVW UDWHV DFFRUGLQJ WR WKH UHTXLUHPHQWV RI WKH VLWXDWLRQ )RU LQVWDQFH ZH VWUXFWXUH RXU
LQGHEWHGQHVVWRDGHTXDWHO\FRYHUWKHDYHUDJHWKUHH\HDUWHQXUHRIORDQVZHH[WHQG$VDPDWWHURISUDFWLFHZH
JHQHUDOO\GRQRWGHSOR\IXQGVUDLVHGIURPVKRUWWHUPERUURZLQJIRUORQJWHUPOHQGLQJ
$ VXPPDU\ RI RXU DVVHW DQG OLDELOLW\ PDWXULW\ SURILOH DV RI 6HSWHPEHU ZKLFK LV EDVHG RQ FHUWDLQ
HVWLPDWHVDVVXPSWLRQVDQGRXUSULRUH[SHULHQFHRIWKHSHUIRUPDQFHRIRXUDVVHWVLVVHWRXWEHORZ
` LQODNKV
3DUWLFXODUV
/LDELOLWLHV2XWIORZV
(TXLW\6KDUH&DSLWDO
5HVHUYHV6XUSOXV
'HEHQWXUHV6XEGHEWV
3XEOLF'HSRVLWV
7HUPORDQ
&DVKFUHGLW
$GYDQFH,QFRPH
,QWHUHVW3D\DEOHRQ/RDQ
3URYLVLRQVRWKHUWKDQ
13$
&XUUHQW/LDELOLWLHV
2WKHUV
7RWDO/LDELOLWLHV
2XWIORZV$
$VVHWV,QIORZ
&DVK
&XUUHQW$FFRXQW
'HSRVLWV6KRUWWHUP
'HSRVLWV
,QYHVWPHQWV1HWRI
3URYLVLRQV
,QIORZIURP/RDQV
$GYDQFHV
2ZQHG$VVHWV
,QWDQJLEOH$VVHWVDQG
2WKHU1RQ&DVKIORZ
LWHPV
,QWHUHVWDQGRWKHULQFRPH
UHFHLYDEOH
2WKHUV$VVHWV
7RWDO$VVHWV,QIORZ%
0LVPDWFK%$
&XPXODWLYHPLVPDWFK
3HUFHQWDJH
WR
GD\V
RQH
PRQWK
2YHURQH
PRQWK
WR
2YHU
PRQWKV
WR
PRQWKV
2YHU
PRQWKV
WR
PRQWKV
2YHU
PRQWKV
WRRQH
PRQWKV
2YHU
RQH
\HDUWR
\HDU
2YHU
WR
\HDUV
\HDUV
2YHU
\HDUV
7RWDO
&UHGLWULVN
&UHGLWULVNLVWKHULVNRIORVVWKDWPD\RFFXUIURPWKHGHIDXOWE\RXUFXVWRPHUVXQGHUWKHORDQDJUHHPHQWVZLWK
XV$VGLVFXVVHGDERYHERUURZHUGHIDXOWVDQGLQDGHTXDWHFROODWHUDOPD\OHDGWRKLJKHU13$V
:H OHQG RQ D UHODWLRQVKLSEDVHG PRGHO DQG ZH EHOLHYH WKDW RXU KLJK ORDQ UHFRYHU\ UDWLRV LQGLFDWH WKH
HIIHFWLYHQHVV RI WKLV DSSURDFK IRU RXU WDUJHW FXVWRPHU EDVH :H DOVR HPSOR\ DGYDQFHG FUHGLW DVVHVVPHQW
SURFHGXUHVZKLFKLQFOXGHYHULI\LQJWKHLGHQWLW\DQGFKHFNLQJUHIHUHQFHVRIWKHSURSRVHGFXVWRPHUWKRURXJKO\DW
WKHOHDGJHQHUDWLRQVWDJH2XUH[WHQVLYHORFDOSUHVHQFHDOVRHQDEOHVXVWRPDLQWDLQUHJXODUGLUHFWFRQWDFWZLWK
RXUFXVWRPHUV,QWKLVUHJDUGZHDVVLJQSHUVRQDOUHVSRQVLELOLW\WRHDFKPHPEHURIWKHOHDGJHQHUDWLRQWHDPIRU
WKH WLPHO\ UHFRYHU\ RI WKH ORDQV WKH\ RULJLQDWH FORVHO\ PRQLWRULQJ WKHLU SHUIRUPDQFH DJDLQVW RXU &RPSDQ\
V
VWDQGDUGVDQGPDLQWDLQLQJH[SRVXUHOLPLWVZLWKUHVSHFWWRHDFKFOLHQW
2SHUDWLRQDO5LVN
2SHUDWLRQDOULVNVDULVHIURPLQDGHTXDWHRUIDLOHGLQWHUQDOSURFHVVHVSHRSOHDQGV\VWHPVRUIURPH[WHUQDOHYHQWV
$VRQHRI WKHIHDWXUHVRIRXUOHQGLQJRSHUDWLRQV ZHRIIHU DVSHHG\ORDQDSSURYDOSURFHVVDQGWKHUHIRUHKDYH
DGRSWHGGHFHQWUDOLVHGORDQDSSURYDOV\VWHPV,QRUGHUWRFRQWURORXURSHUDWLRQDOULVNVZHKDYHDGRSWHGFOHDUO\
GHILQHGORDQDSSURYDOSURFHVVHVDQGSURFHGXUHVDQGKDYHLPSOHPHQWHGFRPSUHKHQVLYHLQWHUQDOFRQWUROPHDVXUHV
WRHQVXUHSURFHVVTXDOLW\DQGVWDQGDUGRSHUDWLQJSURFHGXUHVIRUDOORSHUDWLRQV:HKDYHSUHSDUHGULVNUHJLVWHUV
IRU DOO SURFHVVHV LGHQWLI\LQJ WKH ULVNV ZLWK PLWLJDQWV FRQWUROV DQG ULVN WULJJHUV :H DOVR DWWHPSW WR PLWLJDWH
RSHUDWLRQDO ULVN E\ PDLQWDLQLQJ NH\ EDFNXS SURFHGXUHV DQG XQGHUWDNLQJ FRQWLQJHQF\ SODQQLQJ 2XU LQKRXVH
DQG LQGHSHQGHQW LQWHUQDO FRQWURO SURFHVV WHDPV FDUU\ RXW DXGLW FKHFNV RI WKH FULWLFDO SURFHVVHV DQG DOO NH\
RSHUDWLRQDO SURFHVVHV DUH FHQWUDOL]HG DW RXU KHDG RIILFH IRU EHWWHU FRQWURO ,I UHFRPPHQGHG E\ WKH LQWHUQDO
FRQWUROSURFHVVWHDPIRUDQ\SDUWLFXODUEXVLQHVVRXWOHWZHDSSRLQWDORFDODXGLWILUPWRFRQGXFWDIXUWKHUDXGLW
5HSRUWV RI WKH LQWHUQDO DXGLWRUV DV ZHOO DV WKH DFWLRQ WDNHQ RQ WKH PDWWHUV UHSRUWHG XSRQ DUH GLVFXVVHG DQG
UHYLHZHGDWWKH$XGLW&RPPLWWHHPHHWLQJV
&DVK0DQDJHPHQW5LVN
2XURIILFHVFROOHFWDQGGHSRVLWDODUJHDPRXQWRIFDVKWKURXJKDKLJKYROXPHRIVPDOOWUDQVDFWLRQVWDNLQJSODFH
LQRXUQHWZRUN7RDGGUHVVFDVKPDQDJHPHQWULVNVZHKDYHGHYHORSHGDGYDQFHGFDVKPDQDJHPHQWFKHFNVWKDW
ZHHPSOR\DWHYHU\OHYHOWRWUDFNDQGWDOO\DFFRXQWV0RUHRYHUZHFRQGXFWUHJXODUDXGLWVWRHQVXUHWKHKLJKHVW
OHYHOVRIFRPSOLDQFHZLWKRXUFDVKPDQDJHPHQWV\VWHPV
$VVHWULVN
$VVHWULVNVDULVHGXHWRWKHGHFUHDVHLQWKHYDOXHRIWKHFROODWHUDORYHUWLPH7KHVHOOLQJSULFHRIDUHSRVVHVVHG
DVVHW PD\ EH OHVV WKDQ WKH WRWDO DPRXQW RI ORDQ DQG LQWHUHVW RXWVWDQGLQJ LQ VXFK ERUURZLQJ DQG ZH PD\ EH
XQDEOH WR UHDOL]H WKH IXOO DPRXQW OHQW WR RXU FXVWRPHUV GXH WR VXFK D GHFUHDVH LQ WKH YDOXH RI WKH FROODWHUDO
7KRXJK ZHEHOLHYH ZHWDNHDSSURSULDWHLQVXUDQFHWRPLWLJDWHWKLVULVNZHPD\DOVRIDFHFHUWDLQSUDFWLFDODQG
H[HFXWLRQGLIILFXOWLHVGXULQJWKHSURFHVVRIVHL]LQJFROODWHUDO2XURIILFHUVDUHWUDLQHGWRUHSRVVHVVDVVHWVDQGRU
HQIRUFHWKHVHFXULW\LQWHUHVWDQGQRH[WHUQDODJHQF\LVLQYROYHGLQVXFKSURFHVVHV
5LVN0DQDJHPHQW$UFKLWHFWXUH
,QRUGHUWRDGGUHVVWKHULVNVWKDWDUHLQKHUHQWWRRXUEXVLQHVVZHKDYHGHYHORSHGDULVNPDQDJHPHQWDUFKLWHFWXUH
WKDW LQFOXGHV PRQLWRULQJ E\ RXU %RDUG WKURXJK WKH $XGLW &RPPLWWHH DQG WKH $VVHW /LDELOLW\ 0DQDJHPHQW
&RPPLWWHH
$XGLW&RPPLWWHH2XU$XGLW&RPPLWWHHDFWVDVDOLQNEHWZHHQWKHVWDWXWRU\DQGLQWHUQDODXGLWRUVDQGRXU
%RDUG ,W LV DXWKRUL]HG WR VHOHFW DQG HVWDEOLVK DFFRXQWLQJ SROLFLHV UHYLHZ UHSRUWV RI WKH VWDWXWRU\ DQG WKH
LQWHUQDODXGLWRUVDQG PHHW ZLWKWKHPWRGLVFXVVWKHLU ILQGLQJVVXJJHVWLRQVDQGRWKHUUHODWHG PDWWHUV2XU
$XGLW &RPPLWWHH KDV DFFHVV WR DOO LQIRUPDWLRQ LW UHTXLUHV IURP RXU &RPSDQ\ DQG FDQ REWDLQ H[WHUQDO
SURIHVVLRQDODGYLFHZKHQHYHUUHTXLUHG
$VVHW/LDELOLW\0DQDJHPHQW&RPPLWWHH 2XU$VVHW/LDELOLW\0DQDJHPHQW&RPPLWWHHDVVLVWVRXU%RDUGLQ
EDODQFHVKHHWSODQQLQJIURPDULVNUHWXUQSHUVSHFWLYHLQFOXGLQJVWUDWHJLFPDQDJHPHQWRILQWHUHVWUDWHDQG
OLTXLGLW\ULVNVPDQDJHPHQWRIPDUNHWULVNIXQGDQFDSLWDOSODQQLQJSURILWSODQQLQJDQGJURZWKSURMHFWLRQ
DQDO\VLVDQGIRUHFDVWLQJRIIXWXUHEXVLQHVVHQYLURQPHQWDQGFRQWLQJHQF\SODQQLQJ
(PSOR\HHV
$VRI6HSWHPEHURXUWRWDOHPSOR\HHVWUHQJWKZDV
:HKDYHEXLOWDKLJKO\FDSDEOHZRUNIRUFHSULPDULO\E\UHFUXLWLQJDQGWUDLQLQJIUHVKJUDGXDWHV$VRXUEXVLQHVV
PRGHOGRHVQRWUHTXLUHH[WHQVLYHEDFNJURXQGLQEDQNLQJRUWKHILQDQFLDOVHUYLFHVLQGXVWU\ZHSUHIHUWRKLUHDQG
WUDLQ IUHVK JUDGXDWHV LQ WKH SDUWLFXODU RSHUDWLRQDO DVSHFWV RI RXU EXVLQHVV 0RUHRYHU ZH SUHIHU WR KLUH RXU
ZRUNIRUFH IURP WKH ORFDOLW\ LQ ZKLFK WKH\ ZLOO RSHUDWH LQ RUGHU WR EHQHILW IURP WKHLU NQRZOHGJH RI WKH ORFDO
FXOWXUH ODQJXDJH SUHIHUHQFHV DQG WHUULWRU\ :H HPSKDVL]H ERWK FODVVURRP WUDLQLQJ DQG RQWKHMRE VNLOOV
DFTXLVLWLRQ 3RVW UHFUXLWPHQW DQ HPSOR\HH XQGHUJRHV LQGXFWLRQ WUDLQLQJ WR JDLQ DQ XQGHUVWDQGLQJ RI RXU
&RPSDQ\ DQG RXU RSHUDWLRQV 2XU SURGXFW H[HFXWLYHV DUH UHVSRQVLEOH IRU FXVWRPHU RULJLQDWLRQ ORDQ
DGPLQLVWUDWLRQDQGPRQLWRULQJDQGORDQUHFRYHU\DQGWKLVHQDEOHVWKHPWRGHYHORSVWURQJUHODWLRQVKLSVZLWKRXU
FXVWRPHUV :H EHOLHYH RXU WUDQVSDUHQW RUJDQL]DWLRQDO VWUXFWXUH HQVXUHV HIILFLHQW FRPPXQLFDWLRQ DQG IHHGEDFN
DQGGULYHVRXUSHUIRUPDQFHGULYHQZRUNFXOWXUH
,QDEXVLQHVVZKHUHSHUVRQDOUHODWLRQVKLSVDUHDQLPSRUWDQWGULYHURIJURZWKH[HFXWLYHDWWULWLRQPD\OHDGWRORVV
RIEXVLQHVV:HWKHUHIRUHHQGHDYRUWREXLOGFRPPRQYDOXHVDQGJRDOVWKURXJKRXWRXURUJDQL]DWLRQDQGVWULYHWR
HQVXUH D SURJUHVVLYH FDUHHU SDWK IRU SURPLVLQJ HPSOR\HHV DQG UHWHQWLRQ RI TXDOLW\ LQWHOOHFWXDO FDSLWDO LQ RXU
&RPSDQ\ :H SURYLGH D SHUIRUPDQFHEDVHG SURJUHVVLYH FDUHHU SDWK IRU RXU HPSOR\HHV )RU LQVWDQFH ZH
LQWURGXFHGWKUHHHPSOR\HHVWRFNRSWLRQSODQVIRUHOLJLEOHHPSOR\HHVDWWKHEUDQFKPDQDJHUOHYHODQGDERYH:H
EHOLHYHRXUDWWULWLRQUDWHVDUHDPRQJWKHORZHVWLQWKHLQGXVWU\DWPDQDJHULDOOHYHOV
,QWHOOHFWXDO3URSHUW\
3XUVXDQW WR D /LFHQVH $JUHHPHQW GDWHG $SULO EHWZHHQ RXU &RPSDQ\ DQG 6KULUDP 2ZQHUVKLS 7UXVW
³627´ ZH DUH OLFHQVHG RQ D QRQH[FOXVLYH EDVLV WR XVH WKH QDPH ³6KULUDP´ DQG WKH DVVRFLDWHG ORJR )RU
GHWDLOVSOHDVHVHHVHFWLRQWLWOHG³+LVWRU\DQG&HUWDLQ&RUSRUDWH0DWWHUV±0DWHULDO$JUHHPHQWV´RQSDJH
/LWLJDWLRQ
([FHSWDVGLVFORVHGHOVHZKHUHLQWKLV3URVSHFWXV WKHUHDUH QR PDWHULDOOLWLJDWLRQ LQYROYLQJWKH &RPSDQ\)RU
GHWDLOVSOHDVHVHHVHFWLRQWLWOHG³2XWVWDQGLQJ/LWLJDWLRQDQG0DWHULDO'HYHORSPHQWV´RQSDJH
7HFKQRORJ\
:HXVHLQIRUPDWLRQWHFKQRORJ\DVDVWUDWHJLFWRROLQRXUEXVLQHVVRSHUDWLRQVWRLPSURYHRXURYHUDOOSURGXFWLYLW\
2XULQIRUPDWLRQWHFKQRORJ\VXSSRUWV\VWHPVDLGXVLQSHUIRUPLQJWKHSURFHVVHVLQYROYHGLQDORDQWUDQVDFWLRQ
)RUH[DPSOHDWWKHSUHGLVEXUVHPHQWVWDJHZHVWRUHNQRZ\RXUFXVWRPHUGHWDLOVDQGRWKHUGHWDLOVRIFXVWRPHU
DSSUDLVDOLQWRWKHV\VWHPIRUIXWXUHUHIHUHQFH$IWHUGLVEXUVHPHQWRXUV\VWHPFDQJHQHUDWHWKHLQWHUHVWGXHRQ
HDFKORDQDWDQ\JLYHQSRLQWDQGWUDFNHDFKSKDVHRIWKHSD\PHQWVFKHGXOHXS WRPDWXULW\:HFDQFRQWURORXU
LQIRUPDWLRQ WHFKQRORJ\ V\VWHP IURP RXU KHDG RIILFH LQ &KHQQDL DOORZLQJ VHQLRU PDQDJHPHQW WR UHFHLYH
RSHUDWLRQDOGDWDRQDSURPSWEDVLV:HDUHDOVRDEOHWRWUDFNRXUOLTXLGLW\SRVLWLRQZKLFKDOORZVXVWRSODQIRU
VKRUWIDOOVLQDGYDQFH$OORIRXUEXVLQHVVRXWOHWVDUHFRQQHFWHGWRWKHFHQWUDOL]HGGDWDFHQWUHLQ&KHQQDL)XUWKHU
ZH XVH KDQGKHOG *356 GHYLFHV WR FROOHFW ORDQ SD\PHQWV DW WKH FXVWRPHU¶V KRPH RU EXVLQHVV ORFDWLRQV 2XU
SURGXFWLRQVHUYHUVDOVRDOORZXVWRFRQGXFWD GDLO\DXWRPDWHGEDFNXS:HFXUUHQWO\KDYHWKH WHFKQRORJ\DQG
IDFLOLWLHVLQSODFHWREDFNXSRXUV\VWHPVDQGKDYHHVWDEOLVKHGGLVDVWHUUHFRYHU\SURFHGXUHVLQ&KHQQDL
,QVXUDQFH
:HPDLQWDLQVXFKLQVXUDQFHFRYHUDJHWKDWZHEHOLHYHLVDGHTXDWHIRURXURSHUDWLRQV:HKDYHLQWHUDOLDWDNHQ
JURXS SROLF\ IRU RXU HPSOR\HHV VWDQGDUG ILUH DQG VSHFLDO SHULOV SROLF\ LQVXUDQFH DJDLQVW EXUJODU\ HOHFWURQLF
HTXLSPHQW LQVXUDQFH SROLF\ :H DUH KRZHYHU FXUUHQWO\ LQ WKH SURFHVV RI UHQHZLQJ FHUWDLQ RI RXU LQVXUDQFH
SROLFLHV
&RPSHWLWLRQ
:H EHOLHYH WKDW RXU NQRZOHGJH RI WKH UXUDO DQG VHPLXUEDQ PDUNHW H[LVWLQJ FXVWRPHU EDVH DQG DVVRFLDWHG
UHODWLRQVKLSV WKH FRQWLQXHG H[SDQVLRQ RI RXU RIILFH QHWZRUN DQG RXU DVVRFLDWLRQ ZLWK WKH 6KULUDP *URXS
FRXSOHGZLWKRXUSURDFWLYHDSSURDFKLQSURYLGLQJIOH[LEOHORDQSURGXFWVDQGVSHHG\VHUYLFHZLOOHQDEOHXVWR
UHPDLQFRPSHWLWLYH&RPSHWLWLRQLQRXULQGXVWU\LVH[SHFWHGWR FRQWLQXHWRLQFUHDVH2XUSULPDU\FRPSHWLWRUV
DUHSXEOLFVHFWRUEDQNVSULYDWHEDQNVLQFOXGLQJIRUHLJQEDQNVFRRSHUDWLYHEDQNVUHJLRQDOUXUDOEDQNVDQG
1%)&V%DQNVDUHLQFUHDVLQJO\H[SDQGLQJLQWRUHWDLOORDQVLQWKHUXUDODQGVHPLXUEDQDUHDVRI,QGLD
3URSHUW\
2XUUHJLVWHUHGRIILFHLVDW$QJDSSD 1DLFNHQ6WUHHW &KHQQDL 7DPLO 1DGX,QGLD 2XUFRUSRUDWH
RIILFHLVDW5R\DSHWWDK+LJK5RDG0\ODSRUH&KHQQDL7DPLO1DGX,QGLD$VRI6HSWHPEHU
ZH KDG EXVLQHVVRXWOHWVDFURVV,QGLD ZKLFK ZH RFFXS\SXUVXDQWWROHDVHDJUHHPHQWVRUSUHPLVHV
VKDULQJDJUHHPHQWV
5(*8/$7,216$1'32/,&,(6
7KHIROORZLQJLVDVXPPDU\RIFHUWDLQODZVDQGUHJXODWLRQVLQ,QGLDZKLFKDUHDSSOLFDEOHWRRXU&RPSDQ\7KH
LQIRUPDWLRQ GHWDLOHG LQ WKLV FKDSWHU KDVEHHQ REWDLQHG IURP SXEOLFDWLRQV DYDLODEOH LQ WKH SXEOLF GRPDLQ 7KH
UHJXODWLRQVVHWRXWEHORZPD\ QRWEH H[KDXVWLYHDQGDUHRQO\LQWHQGHGWRSURYLGHJHQHUDOLQIRUPDWLRQWRWKH
LQYHVWRUVDQGDUHQHLWKHUGHVLJQHGQRULQWHQGHGWRVXEVWLWXWHIRUSURIHVVLRQDOOHJDODGYLFH
2XU&RPSDQ\LVUHJLVWHUHGDVDQ1%)&ZKLFKLVDQDVVHWILQDQFHFRPSDQ\ZKLFKDFFHSWVSXEOLFGHSRVLWV+RZHYHUDV
RQ'HFHPEHULQWHUPVRIRXUWRWDODVVHWVDQGWRWDOLQFRPHRQDQXQFRQVROLGDWHGEDVLVRXU&RPSDQ\LVQRZ
FODVVLILHGDVD³ORDQFRPSDQ\´XQGHUWKHSURYLVLRQVRI6HFWLRQ,$RIWKH5%,$FWDQGDSSOLFDEOHQRWLILFDWLRQVRQ
FODVVLILFDWLRQRI1%)&VLVVXHGE\WKH5%,$VRQGDWHRIWKLV3URVSHFWXVZHKDYHQRWEHHQJUDQWHGDUHYLVHGFHUWLILFDWH
RI UHJLVWUDWLRQ DV D ³ORDQ FRPSDQ\´ E\ WKH 5%, $V VXFK RXU EXVLQHVV DFWLYLWLHV DUH UHJXODWHG E\ 5%, UHJXODWLRQV
DSSOLFDEOHWR1%)&VUHJLVWHUHGDVDGHSRVLWDFFHSWLQJ1%)&³1%)&'´
)ROORZLQJDUHWKHVLJQLILFDQWUHJXODWLRQVWKDWDIIHFWRXURSHUDWLRQV
1%)&UHJXODWLRQV
5HJXODWLRQRI1%)&VUHJLVWHUHGZLWKWKH5%,
7KH5%,UHJXODWHVDQGVXSHUYLVHVDFWLYLWLHVRI1%)&V&KDSWHU,,,%RIWKH5HVHUYH%DQNRI,QGLD$FWRI
³5%,$FW´HPSRZHUVWKH5%,WRUHJXODWHDQGVXSHUYLVHWKHDFWLYLWLHVRIDOO1%)&VLQ,QGLD7KH5%,$FWGHILQHV
DQ1%)&XQGHUVHFWLRQ,I
L ³DILQDQFLDOLQVWLWXWLRQZKLFKLVDFRPSDQ\
LL D QRQEDQNLQJ LQVWLWXWLRQ ZKLFK LV D FRPSDQ\ DQG ZKLFK KDV DV LWV SULQFLSDO EXVLQHVV WKH UHFHLYLQJ RI
GHSRVLWVXQGHUDQ\VFKHPHRUDUUDQJHPHQWRULQDQ\RWKHUPDQQHURUOHQGLQJLQDQ\PDQQHU
LLL VXFKRWKHUQRQEDQNLQJLQVWLWXWLRQRUFODVVRIVXFKLQVWLWXWLRQVDVWKH5%,PD\ZLWKWKHSUHYLRXVDSSURYDORI
WKH&HQWUDO*RYHUQPHQWDQGE\QRWLILFDWLRQLQWKH2IILFLDO*D]HWWHVSHFLI\´
6HFWLRQ,FRIWKH5%,$FWIXUWKHUGHILQHV³ILQDQFLDOLQVWLWXWLRQ´WRPHDQDQ\QRQEDQNLQJLQVWLWXWLRQZKLFK
DPRQJRWKHUWKLQJVFDUULHVRQWKHEXVLQHVVRUSDUWRILWVEXVLQHVVRIPDNLQJORDQVRUDGYDQFHV
7KH 5%, KDV FODULILHG WKURXJK D SUHVV UHOHDVH 5HI 1R GDWHG $SULO WKDW LQ RUGHU WR
LGHQWLI\DSDUWLFXODUFRPSDQ\DVDQ1%)&LWZLOOFRQVLGHUERWKWKHDVVHWVDQGWKHLQFRPHSDWWHUQDVHYLGHQFHG
IURPWKHODVWDXGLWHGEDODQFHVKHHWRIWKHFRPSDQ\WRGHFLGHLWVSULQFLSDOEXVLQHVV7KHFRPSDQ\ZLOOEHWUHDWHGDV
DQ1%)&LIDLWVILQDQFLDODVVHWVDUHPRUHWKDQSHUFHQWRILWVWRWDODVVHWVQHWWHGRIIE\LQWDQJLEOHDVVHWVDQG
ELQFRPHIURPILQDQFLDODVVHWVVKRXOGEHPRUHWKDQSHUFHQWRIWKHJURVVLQFRPH%RWKWKHVHWHVWVDUHUHTXLUHG
WREHVDWLVILHGDVWKHGHWHUPLQDQWIDFWRUIRUSULQFLSDOEXVLQHVVRIDFRPSDQ\
7KH5%,$FWPDQGDWHVWKDWQR1%)&ZKLFKFRPHVLQWRH[LVWHQFHDIWHUWKHFRPPHQFHPHQWRIWKH5HVHUYH%DQN
RI,QGLD$PHQGPHQW$FWVKDOOFRPPHQFHRUFDUU\RQWKHEXVLQHVVRIDQRQEDQNLQJILQDQFLDOLQVWLWXWLRQZLWKRXW
REWDLQLQJDFHUWLILFDWHRIUHJLVWUDWLRQ)XUWKHUPRUHVXFKDQ1%)&PXVWDOVRKDYHDQHWRZQHGIXQGRI`
RUVXFKRWKHUDPRXQWQRWH[FHHGLQJ`
8QGHUVHFWLRQ±,&RIWKH5%,$FWHYHU\1%)&PXVWFUHDWHDUHVHUYHIXQGDQGWUDQVIHUWKHUHWRDVXPQRWOHVV
WKDQSHUFHQWRILWVQHWSURILWHYHU\\HDUDVGLVFORVHGLQWKHSURILWDQGORVVDFFRXQWDQGEHIRUHDQ\GLYLGHQGLV
GHFODUHG )XUWKHU QR DSSURSULDWLRQ FDQ EH PDGH IURP WKH IXQG IRU DQ\ SXUSRVH E\ WKH 1%)& H[FHSW IRU WKH
SXUSRVHVVSHFLILHGE\WKH5%,IURPWLPHWRWLPHDQGHYHU\VXFKDSSURSULDWLRQVKDOOEHUHSRUWHGWRWKH5%,ZLWKLQ
GD\VIURPWKHGDWHRIVXFKDSSURSULDWLRQ
2EOLJDWLRQV RI 1%)&' XQGHU WKH 1RQ%DQNLQJ )LQDQFLDO &RPSDQLHV $FFHSWDQFH RI 3XEOLF 'HSRVLWV
5HVHUYH%DQN'LUHFWLRQVDVDPHQGHG³3XEOLF'HSRVLW'LUHFWLRQV´
7KH5%,¶V3XEOLF'HSRVLW'LUHFWLRQVJRYHUQVWKHPDQQHULQZKLFK1%)&VPD\DFFHSWDQGRUKROGSXEOLF
GHSRVLWV 7KH 3XEOLF 'HSRVLW 'LUHFWLRQV SODFHV WKH IROORZLQJ UHVWULFWLRQV RQ 1%)&V LQ FRQQHFWLRQ ZLWK
DFFHSWLQJSXEOLFGHSRVLWV
L 3URKLELWLRQ IURP DFFHSWLQJ DQ\ GHPDQG GHSRVLWV 1%)&V DUH SURKLELWHG IURP DFFHSWLQJ DQ\ SXEOLF
GHSRVLWZKLFKLVUHSD\DEOHRQGHPDQG
LL &HLOLQJRQTXDQWXPRIGHSRVLWV$1%)&ZKLFKLVFODVVLILHGDVDQDVVHWILQDQFHFRPSDQ\DKDYLQJ
QHWRZQHGIXQGVRI `5XSHHVWZHQW\ILYHODNKVRQO\RUPRUHDQGEKDYLQJFRPSOLHG
ZLWKDOOSUXGHQWLDOQRUPVUHODWLQJWRWKHFDSLWDODGHTXDF\UDWLRRIQRWOHVVWKDQILIWHHQSHUFHQWDVSHU
ODVWDXGLWHGEDODQFHVKHHWPD\DFFHSWRUUHQHZSXEOLFGHSRVLWVQRWH[FHHGLQJRQHDQGRQHKDOIWLPHV
RI LWV QHW RZQHG IXQGV RU SXEOLF GHSRVLW XS WR ` 5XSHHV RQH WKRXVDQG ODNKV RQO\
ZKLFKHYHU LV OHVV )XUWKHU DQ DVVHW ILQDQFH FRPSDQ\ D KDYLQJ QHW RZQHG IXQGV RI ` 5XSHHVWZHQW\ILYHODNKVRQO\RUPRUHEKDYLQJFRPSOLHGZLWKDOOWKHSUXGHQWLDOQRUPVDQGF
KDYLQJ REWDLQHG PLQLPXP LQYHVWPHQW JUDGH FUHGLW UDWLQJ IURP D QRWLILHG FUHGLW UDWLQJ DJHQF\ PD\
DFFHSWRUUHQHZSXEOLFGHSRVLWVQRWH[FHHGLQJIRXUWLPHVRILWVQHWRZQHGIXQGV
)XUWKHUPRUH DQ 1%)& ZKLFK LV FODVVLILHG DV D ORDQ FRPSDQ\ D KDYLQJ QHW RZQHG IXQGV RI
` 5XSHHV WZHQW\ ILYH ODNKV RQO\ RU PRUH E KDYLQJ PLQLPXP LQYHVWPHQW JUDGH FUHGLW
UDWLQJ DQG F FRPSO\LQJ ZLWK DOO WKH SUXGHQWLDO QRUPV ZLWK FDSLWDO DGHTXDF\ UDWLR RI QRW OHVV WKDQ
ILIWHHQSHUFHQWDVSHULWVODVWDXGLWHGEDODQFHVKHHWPD\DFFHSWRUUHQHZSXEOLFGHSRVLWWRJHWKHUZLWK
WKHDPRXQWVUHPDLQLQJRXWVWDQGLQJLQWKHERRNVRIVXFKORDQFRPSDQ\DVRQWKHGDWHRIDFFHSWDQFHRU
UHQHZDORIVXFKGHSRVLWQRWH[FHHGLQJRQHDQGRQHKDOIWLPHVRILWVQHWRZQHGIXQGV
LLL 'RZQJUDGLQJ RI FUHGLWUDWLQJ ,Q WKH HYHQW WKDW WKH FUHGLW UDWLQJ LVVXHG E\ D FUHGLW UDWLQJ DJHQF\
UHFRJQL]HG E\ 5%, IRU DQ DVVHW ILQDQFH FRPSDQ\ RU D ORDQ FRPSDQ\ LV GRZQJUDGHG EHORZ WKH
PLQLPXP VSHFLILHG LQYHVWPHQW JUDGH ZLWK UHVSHFW WR WKH UHOHYDQW FUHGLW UDWLQJ DJHQF\ WKH 1%)&
PXVW D IRUWKZLWK VWRS DFFHSWLQJ SXEOLF GHSRVLW E UHSRUW WKH SRVLWLRQ RI WKH FUHGLW UDWLQJ ZLWKLQ
ILIWHHQ ZRUNLQJ GD\V WR WKH 5%, DQG F UHGXFH ZLWKLQ WKUHH \HDUV IURP WKH GDWH RI VXFK
GRZQJUDGLQJRIFUHGLWUDWLQJWKHDPRXQWRIH[FHVVSXEOLFGHSRVLWWRQLORUWKHDSSURSULDWHH[WHQWDV
SHUPLWWHGXQGHUWKH3XEOLF 'HSRVLW'LUHFWLRQVE\UHSD\PHQWDVDQG ZKHQVXFKGHSRVLWIDOOVGXHRU
RWKHUZLVH
LY &HLOLQJ RQ UDWH RI LQWHUHVW $Q 1%)& FDQQRW LQYLWH RU DFFHSW RU UHQHZ SXEOLF GHSRVLWV DW D UDWH RI
LQWHUHVWH[FHHGLQJWZHOYHDQGKDOISHUFHQWSHUDQQXP6XFKLQWHUHVWPD\EHSDLGRUFRPSRXQGHGDW
UHVWVZKLFKVKDOOQRWEHVKRUWHUWKDQPRQWKO\UHVWV
Y 0LQLPXP ORFNLQ SHULRG $Q 1%)& LV SURKLELWHG IURP JUDQWLQJ DQ\ ORDQ DJDLQVW D SXEOLF GHSRVLW RU
PDNH SUHPDWXUH UHSD\PHQW RI D SXEOLF GHSRVLW ZLWKLQ D SHULRG RI WKUHH PRQWKV IURP WKH GDWH RI
DFFHSWDQFHRIVXFKSXEOLFGHSRVLW
2EOLJDWLRQVRI1%)&'XQGHUWKH1RQ%DQNLQJ)LQDQFLDO'HSRVLW$FFHSWLQJRU+ROGLQJ&RPSDQLHV
3UXGHQWLDO1RUPV5HVHUYH%DQN'LUHFWLRQVDVDPHQGHG³3UXGHQWLDO1RUPV´
1%)&'VDUHUHTXLUHGWRFRPSO\ZLWKSUHVFULEHGFDSLWDODGHTXDF\UDWLRVVLQJOHDQGJURXSH[SRVXUHQRUPV
DQGRWKHUVSHFLILHGSUXGHQWLDOUHTXLUHPHQWVSUHVFULEHGXQGHUWKH3UXGHQWLDO1RUPV6RPHRIWKHLPSRUWDQW
REOLJDWLRQVDUHDVIROORZV
L ,QFRPH5HFRJQLWLRQDVSHUWKHµ0DVWHU&LUFXODURQ3UXGHQWLDOQRUPVRQ,QFRPH5HFRJQLWLRQ$VVHW
&ODVVLILFDWLRQ DQG 3URYLVLRQLQJ SHUWDLQLQJ WR $GYDQFHV¶ GDWHG -XO\ ³0DVWHU &LUFXODU RQ
3UXGHQWLDO1RUPV´1%)&'VDUHUHTXLUHGWRIROORZUHFRJQL]HGDFFRXQWLQJSULQFLSOHVLQFRQQHFWLRQ
ZLWK LQFRPH UHFRJQLWLRQ ,QFRPH LQFOXGLQJ LQWHUHVWGLVFRXQW RU DQ\ RWKHU FKDUJHV RQ 13$ LV
UHFRJQL]HG RQO\ ZKHQ LW LV DFWXDOO\ UHDOL]HG $Q\ VXFK LQFRPH UHFRJQL]HG EHIRUH WKH DVVHW EHFDPH
QRQSHUIRUPLQJ DQG UHPDLQLQJ XQUHDOL]HG PXVW EH UHYHUVHG :LWK UHVSHFW WR KLUH SXUFKDVH DVVHWV
ZKHUHLQVWDOPHQWVDUHRYHUGXHIRUPRUHWKDQPRQWKVLQFRPHVKDOOEHUHFRJQL]HGRQO\ZKHQKLUH
FKDUJHVDUHDFWXDOO\UHFHLYHG$Q\VXFKLQFRPHWDNHQWRWKHFUHGLWRISURILWDQGORVVDFFRXQWEHIRUH
WKHDVVHWEHFDPHQRQSHUIRUPLQJDQGUHPDLQLQJXQUHDOL]HGPXVWEHUHYHUVHG
LL $VVHW &ODVVLILFDWLRQ DQG SURYLVLRQLQJ RI DVVHWV $V SHU WKH 0DVWHU &LUFXODU RQ 3UXGHQWLDO 1RUPV
HYHU\1%)&'LVUHTXLUHGWRDIWHUWDNLQJLQWRDFFRXQWWKHGHJUHHRIZHOOGHILQHGFUHGLWZHDNQHVVHV
DQGH[WHQWRIGHSHQGHQFHRQFROODWHUDOVHFXULW\IRUUHDOL]DWLRQFODVVLI\LWVOHDVHKLUHSXUFKDVHDVVHWV
ORDQVDQGDGYDQFHVDQGDQ\RWKHUIRUPVRIFUHGLWLQWRWKHIROORZLQJFODVVHVQDPHO\
6WDQGDUGDVVHWV
6XEVWDQGDUGDVVHWV
'RXEWIXODVVHWVDQG
/RVVDVVHWV
)XUWKHUDQ1%)&'PXVWDIWHUWDNLQJLQWRDFFRXQWWKHWLPHODJEHWZHHQDQDFFRXQWEHFRPLQJQRQ
SHUIRUPLQJ LWV UHFRJQLWLRQ DV VXFK WKH UHDOLVDWLRQ RI WKH VHFXULW\ DQG WKH HURVLRQ RYHU WLPH LQ WKH
YDOXHRIVHFXULW\FKDUJHGPDNHSURYLVLRQDJDLQVWVXEVWDQGDUGDVVHWVGRXEWIXODVVHWVDQGORVVDVVHWV
LQWKHPDQQHUSUHVFULEHGE\5%,
LLL 3URYLVLRQLQJ RI 6WDQGDUG $VVHWV $V SHU WKH 0DVWHU &LUFXODU RQ 3UXGHQWLDO 1RUPV 1%)&V DUH
UHTXLUHG WR PDNH D JHQHUDO SURYLVLRQ DW SHU FHQW RI WKH RXWVWDQGLQJ VWDQGDUG DVVHWV 7KH
SURYLVLRQV RQ VWDQGDUG DVVHWV DUH QRW FRQVLGHUHG IRU DUULYLQJ DW QHW 13$V 7KH SURYLVLRQV WRZDUGV
VWDQGDUG DVVHWV GR QRW QHHG WR EH QHWWHG IURP JURVV DGYDQFHV EXW PXVW EH VKRZQ VHSDUDWHO\ DV
&RQWLQJHQW3URYLVLRQVDJDLQVW6WDQGDUG$VVHWV
LQWKHEDODQFHVKHHW1%)&VDUH DOORZHGWRLQFOXGH
WKH µ*HQHUDO 3URYLVLRQV RQ 6WDQGDUG $VVHWV¶ LQ 7LHU ,, FDSLWDO ZKLFK WRJHWKHU ZLWK RWKHU µJHQHUDO
SURYLVLRQVORVVUHVHUYHV¶ZLOOEHDGPLWWHGDV7LHU,,FDSLWDORQO\XSWRDPD[LPXPRISHUFHQWRI
WKHWRWDOULVNZHLJKWHGDVVHWV
LY 5HVWUXFWXULQJ RI DGYDQFHV $V SHU QRWLILFDWLRQ GDWHG -DQXDU\ WKH 5%, KDV DPHQGHG WKH
H[LVWHQW QRUPV UHODWLQJ WR LQIUDVWUXFWXUH ORDQV H[WHQGHG E\ 1%)&V 7KH QRWLILFDWLRQ UHJXODWHV DVVHW
FODVVLILFDWLRQRISURMHFWORDQVIRUERWKWKHLQIUDVWUXFWXUHVHFWRUDQGWKHQRQLQIUDVWUXFWXUHVHFWRU7KH
DPHQGPHQWDOVRLQWURGXFHVQHZJXLGHOLQHVJRYHUQLQJUHVWUXFWXULQJRIDGYDQFHVE\1%)&VZKLFKDUH
DSSOLFDEOHWRDOOUHVWUXFWXULQJVLQFOXGLQJWKRVHXQGHUFRUSRUDWHGHEWUHVWUXFWXULQJPHFKDQLVP1%)&V
PD\ UHVWUXFWXUH WKH DFFRXQWV FODVVLILHG XQGHU VWDQGDUG
VXEVWDQGDUG
DQG GRXEWIXO
FDWHJRULHV
1%)&VFDQQRWUHVFKHGXOHUHVWUXFWXUHRUUHQHJRWLDWHERUURZDODFFRXQWVZLWKUHWURVSHFWLYHHIIHFW
Y
/RDQV DJDLQVW 1%)&¶V RZQ VKDUHV SURKLELWHG $V SHU WKH 3UXGHQWLDO 1RUPV QR 1%)&' FDQ OHQG
DJDLQVWLWVRZQVKDUHV$Q\RXWVWDQGLQJORDQJUDQWHGE\D1%)&'DJDLQVWLWVRZQVKDUHVRQWKHGDWH
RIFRPPHQFHPHQWRIWKHVH'LUHFWLRQVVKDOOEHUHFRYHUHGE\WKH1%)&DVSHUWKHUHSD\PHQWVFKHGXOH
YL 1%)& IDLOLQJ WR UHSD\ SXEOLF GHSRVLW SURKLELWHG IURP PDNLQJ ORDQV DQG LQYHVWPHQWV $V SHU WKH
3UXGHQWLDO 1RUPV DQ 1%)&' ZKLFK KDV IDLOHG WR UHSD\ DQ\ SXEOLF GHSRVLW RU SDUW WKHUHRI LQ
DFFRUGDQFHZLWKWKHWHUPVDQGFRQGLWLRQVRIVXFKGHSRVLWFDQQRWJUDQWDQ\ORDQRURWKHUFUHGLWIDFLOLW\
E\ ZKDWHYHU QDPH FDOOHG RU PDNH DQ\ LQYHVWPHQW RU FUHDWH DQ\ RWKHU DVVHW DV ORQJ DV VXFK GHIDXOW
H[LVWV
YLL ([SRVXUH WR FDSLWDOPDUNHWV $V SHU WKH 3UXGHQWLDO 1RUPV HYHU\ 1%)&' ZLWK WRWDO DVVHWV RI `
ODNKVDQGDERYHDFFRUGLQJWRWKHSUHYLRXVDXGLWHGEDODQFHVKHHWPXVWVXEPLWDPRQWKO\UHWXUQ
ZLWKLQDSHULRGRIGD\VRIWKHH[SLU\RIWKHPRQWKWRZKLFKLWSHUWDLQVLQWKHSUHVFULEHGIRUPWRWKH
5HJLRQDO2IILFHRIWKH'HSDUWPHQWRI1RQ%DQNLQJ6XSHUYLVLRQRIWKH5%,
YLLL &DSLWDO $GHTXDF\ $V SHU WKH 3UXGHQWLDO 1RUPV HYHU\ 1%)&' VKDOO PDLQWDLQ D PLQLPXP &$5
FRQVLVWLQJRI7LHU,DQG7LHU,,FDSLWDOZKLFKPXVWQRWEHOHVVWKDQILIWHHQSHUFHQWRILWVDJJUHJDWHULVN
ZHLJKWHGDVVHWVRQ EDODQFHVKHHWDQGRIULVNDGMXVWHGYDOXH RIRIIEDODQFHVKHHWLWHPV 7KH WRWDORI
7LHU,,FDSLWDORIDQ\1%)&'DWDQ\SRLQWRIWLPHPXVWQRWH[FHHGRQHKXQGUHGSHUFHQWRI7LHU,
FDSLWDO $V SHU 5%, QRWLILFDWLRQ GDWHG )HEUXDU\ DOO GHSRVLW DFFHSWLQJ 1%)&V KDYH WR
PDLQWDLQDPLQLPXPFDSLWDOUDWLRFRQVLVWLQJRI7LHU,DQG7LHU,,FDSLWDOZKLFKVKDOOQRWEHOHVVWKDQ
RILWVDJJUHJDWHULVNZHLJKWHGDVVHWVRQEDODQFHVKHHWDQGULVNDGMXVWHGYDOXHRIRIIEDODQFHVKHHW
LWHPVZHI0DUFK
L[ 'LVFORVXUH 5HTXLUHPHQWV $V SHU WKH 3UXGHQWLDO 1RUPV HYHU\ 1%)&' LV UHTXLUHG WR VHSDUDWHO\
GLVFORVHLQLWVEDODQFHVKHHWWKHSURYLVLRQVPDGHLQDFFRUGDQFHZLWKWKHDSSOLFDEOHSUXGHQWLDOQRUPV
SUHVFULEHGE\WKH5%,ZLWKRXWQHWWLQJWKHPIURPWKHLQFRPHRUDJDLQVWWKH YDOXHRIDVVHWV)XUWKHU
WKHSURYLVLRQVPXVWEHGLVWLQFWO\LQGLFDWHGXQGHUVHSDUDWHKHDGVRIDFFRXQWDVXQGHU
SURYLVLRQVIRUEDGDQGGRXEWIXOGHEWVDQG
SURYLVLRQVIRUGHSUHFLDWLRQLQLQYHVWPHQWV
6XFKSURYLVLRQVVKDOOQRWEHDSSURSULDWHGIURPWKHJHQHUDOSURYLVLRQVDQGORVVUHVHUYHVKHOGLIDQ\
E\ WKH 1%)&' DQG IRU HDFK \HDU VKDOO EH GHELWHG WR WKH SURILW DQG ORVV DFFRXQW 7KH H[FHVV RI
SURYLVLRQV LI DQ\ KHOG XQGHU WKH KHDGV JHQHUDO SURYLVLRQV DQG ORVV UHVHUYHV PD\ EH ZULWWHQ EDFN
ZLWKRXWPDNLQJDGMXVWPHQWDJDLQVWWKHP
[
)DLU 3UDFWLFHV &RGH 7KH 5%, KDV IUDPHG WKH IDLU SUDFWLFH JXLGHOLQHV WR SURPRWH JRRG DQG IDLU
SUDFWLFHVE\VHWWLQJPLQLPXPVWDQGDUGVWREHDGKHUHGWRE\1%)&VLQGHDOLQJZLWKFXVWRPHUV7KHVH
JXLGHOLQHVUHTXLUH1%)&VWRHQVXUHWKDWWKH\PHHWWKHFRPPLWPHQWVDQGVWDQGDUGVVSHFLILHGWKHUHLQ
IRUWKHSURGXFWVDQGVHUYLFHVWKH\RIIHUDQGLQWKHSURFHGXUHVDQGSUDFWLFHVWKHLUVWDIIIROORZVWKHLU
SURGXFWVDQGVHUYLFHVPHHWUHOHYDQWODZVDQGUHJXODWLRQVLQOHWWHUDQGVSLULWDQGWKHLUGHDOLQJVZLWK
FXVWRPHUV UHVW RQ HWKLFDO SULQFLSOHV RI LQWHJULW\ DQG WUDQVSDUHQF\ )XUWKHU WKH VDLG JXLGHOLQHV
SUHVFULEHWKHUHTXLUHPHQWVLQFRQQHFWLRQZLWKLQIRUPDWLRQWREHSURYLGHGDQGGLVFORVXUHVWREHPDGH
E\1%)&VWRWKHLUFXVWRPHUV$FFRUGLQJO\WKHJXLGHOLQHVUHTXLUH1%)&VWRSURYLGHLQIRUPDWLRQRQ
LQWHUHVW UDWHV FRPPRQ IHHV DQG FKDUJHV SURYLGH FOHDU LQIRUPDWLRQ H[SODLQLQJ WKH NH\ IHDWXUHV RI
WKHLU VHUYLFHV DQG SURGXFWV WKDW FXVWRPHUV DUH LQWHUHVWHG LQ SURYLGH LQIRUPDWLRQ RQ DQ\ W\SH RI
SURGXFWDQGVHUYLFHRIIHUHGWKDWPD\VXLWWKHFXVWRPHU¶VQHHGVWHOOWKHFXVWRPHUVDERXWWKHYDULRXV
PHDQV WKURXJK ZKLFK SURGXFWV DQG VHUYLFHV DUH RIIHUHG DQG SURYLGH PRUH LQIRUPDWLRQ RQ WKH NH\
IHDWXUHVRIWKHSURGXFWVLQFOXGLQJDSSOLFDEOHLQWHUHVWUDWHVIHHVDQGFKDUJHV
[L .<&*XLGHOLQHV1%)&VKDYHEHHQDGYLVHGWRIROORZFHUWDLQFXVWRPHULGHQWLILFDWLRQSURFHGXUHVIRU
WKHRSHQLQJRIDFFRXQWVDQGPRQLWRULQJWUDQVDFWLRQVRIVXVSLFLRXVQDWXUHIRUWKHSXUSRVHRIUHSRUWLQJ
LWWRDSSURSULDWHDXWKRULW\³.<&1RUPV´$FFRUGLQJO\1%)&VKDYHEHHQDGYLVHGWRHQVXUHWKDWD
SURSHUSROLF\IUDPHZRUNRQµNQRZ\RXUFXVWRPHU¶DQGDQWLPRQH\ODXQGHULQJPHDVXUHVLVIRUPXODWHG
DQG SXW LQ SODFH ZLWK WKH DSSURYDO RI WKH 5%, 7KH .<& 1RUPV DOVR UHTXLUH WKDW ZKLOH SUHSDULQJ
RSHUDWLRQDOJXLGHOLQHV1%)&VPXVWWUHDWWKHLQIRUPDWLRQFROOHFWHGIURPWKHFXVWRPHUIRUWKHSXUSRVH
RIRSHQLQJRIDFFRXQWDVFRQILGHQWLDODQGQRWGLYXOJHDQ\GHWDLOVWKHUHRIIRUFURVVVHOOLQJRUDQ\RWKHU
SXUSRVHV1%)&VPXVWHQVXUHWKDWLQIRUPDWLRQVRXJKWIURPWKHFXVWRPHULVUHOHYDQWWRWKHSHUFHLYHG
ULVN LV QRW LQWUXVLYH DQG LV LQ FRQIRUPLW\ ZLWK WKH JXLGHOLQHV LVVXHG LQ WKLV UHJDUG $Q\ RWKHU
LQIRUPDWLRQIURPWKHFXVWRPHUVKRXOGEHVRXJKWVHSDUDWHO\ZLWKKLVKHUFRQVHQWDQGDIWHURSHQLQJWKH
DFFRXQW
5DWLQJRI)LQDQFLDO3URGXFW
3XUVXDQW WR WKH 5%, FLUFXODU GDWHG )HEUXDU\ 5HI 1R DOO 1%)&V ZLWK DQ
DVVHWVL]HRI`ODNKVDQGDERYHDUHUHTXLUHGWRIXUQLVKDWWKHUHOHYDQWUHJLRQDORIILFHRIWKH5%,ZLWKLQ
ZKRVHMXULVGLFWLRQWKHUHJLVWHUHGRIILFHRIWKH1%)&LVIXQFWLRQLQJLQIRUPDWLRQUHODWLQJWRWKHGRZQJUDGLQJDQG
XSJUDGLQJRIDVVLJQHGUDWLQJRIDQ\ILQDQFLDOSURGXFWVLVVXHGE\WKHPZLWKLQGD\VRIVXFKFKDQJH
1RUPVIRU([FHVVLYH,QWHUHVW5DWHV
7KH5%,WKURXJKLWVFLUFXODUGDWHG0D\5HI1RGLUHFWHGDOO1%)&VWRSXWLQSODFH
DSSURSULDWHLQWHUQDOSULQFLSOHVDQGSURFHGXUHVWRGHWHUPLQHLQWHUHVWUDWHVDQGSURFHVVLQJDQGRWKHUFKDUJHV,Q
DGGLWLRQWRWKHDIRUHVDLGLQVWUXFWLRQWKH5%,KDVLVVXHGD0DVWHU&LUFXODURQ)DLU3UDFWLFHV&RGHGDWHG-XO\
IRUUHJXODWLQJWKHUDWHVRILQWHUHVWFKDUJHGE\WKH1%)&V7KHVHFLUFXODUVVWLSXODWHWKDWWKHERDUGRIHDFK
1%)&LVUHTXLUHGWRDGRSWDQLQWHUHVWUDWHPRGHOWDNLQJLQWRDFFRXQWWKHYDULRXVUHOHYDQWIDFWRUVLQFOXGLQJFRVW
RIIXQGVPDUJLQDQGULVNSUHPLXP7KHUDWHRILQWHUHVWDQGWKHDSSURDFKIRUJUDGDWLRQRIULVNDQGWKHUDWLRQDOH
IRUFKDUJLQJGLIIHUHQWUDWHVRILQWHUHVWIRUGLIIHUHQWFDWHJRULHVRIERUURZHUVDUH UHTXLUHGWREHGLVFORVHGWRWKH
ERUURZHUV LQ WKH DSSOLFDWLRQ IRUP DQG H[SUHVVO\ FRPPXQLFDWHG LQ WKH VDQFWLRQ OHWWHU )XUWKHU WKLV LV DOVR
UHTXLUHGWREHPDGHDYDLODEOHRQWKH1%)&VZHEVLWHRUSXEOLVKHGLQQHZVSDSHUVDQGLVUHTXLUHGWREHXSGDWHGLQ
WKH HYHQW RI DQ\ FKDQJH WKHUHLQ )XUWKHU WKH UDWH RI LQWHUHVW ZRXOG KDYH WR EH DQ DQQXDOL]HG UDWH VR WKDW WKH
ERUURZHULVDZDUHRIWKHH[DFWUDWHVWKDWZRXOGEHFKDUJHGWRWKHDFFRXQW
'UDIW*XLGHOLQHVIRU1%)&V
%DVHG RQ WKH UHFRPPHQGDWLRQV RI WKH µ8VKD 7KRUDW &RPPLWWHH 5HSRUW RQ ,VVXHV DQG &RQFHUQV LQ 1%)&
6HFWRU¶ WKH 5HVHUYH %DQN RI ,QGLD RQ 'HFHPEHU SODFHG RQ LWV ZHEVLWH GUDIW JXLGHOLQHV WR DGGUHVV
LVVXHVDQGFRQFHUQVLQWKH1%)&VHFWRU7KHNH\SURYLVLRQVRIWKHVDLGGUDIWJXLGHOLQHVDUHDVIROORZV
L &RUSRUDWH *RYHUQDQFH $V UHJDUGV FRUSRUDWH JRYHUQDQFH 1%)&V ZLWK DQ DVVHW VL]H RI RYHU `
ODNKV DUH QRZ VXEMHFWHG WR D VWULFW OHJDO UHJLPH DQG PXVW FRPSO\ ZLWK &ODXVH RI WKH (TXLW\ /LVWLQJ
$JUHHPHQWLUUHVSHFWLYHRIZKHWKHURUQRWWKH\DUHOLVWHG$OOUHJLVWHUHG1%)&VERWKGHSRVLWDFFHSWLQJDQG
QRQGHSRVLWDFFHSWLQJDUHUHTXLUHGWRWDNHSULRUDSSURYDOIURPWKH5HVHUYH%DQNRI,QGLDZKHUHWKHUHLVD
FKDQJHLQFRQWURODQGRULQFUHDVHRIVKDUHKROGLQJWRWKHH[WHQWRIRULQH[FHVVWKHUHRIRIWKHSDLGXS
HTXLW\ FDSLWDO RI WKH FRPSDQ\ E\ LQGLYLGXDOV RU JURXSV GLUHFWO\ RU LQGLUHFWO\ $SSRLQWPHQW RI &(2V RI
1%)&V ZLWK DVVHW VL]H RI ` ODNKV DQG DERYH ZRXOG UHTXLUH WKH 5HVHUYH %DQN RI ,QGLD¶V SULRU
DSSURYDO ,W ZRXOG EH PDQGDWRU\ IRU UHJLVWHUHG 1%)&V ZLWK DVVHWV RI ` ODNKV DQG DERYH WR
FRQVWLWXWH D UHPXQHUDWLRQ FRPPLWWHH WR GHFLGH RQ WKH FRPSHQVDWLRQ SD\DEOH WR H[HFXWLYHV 1%)&V ZLWK
DVVHW VL]H EHORZ ` ODNKV KDYH EHHQ HQFRXUDJHG WR DGRSW VXFK SUDFWLFHV $OO GHSRVLW DFFHSWLQJ
1%)&VDUHUHTXLUHGWRHQVXUHWKDWWKHUHLVDSROLF\LQSODFHIRUDVFHUWDLQLQJWKHILWDQGSURSHUFULWHULDIRU
DSSRLQWPHQWRIGLUHFWRUV
LL
(QWU\ 3RLQW 1RUPV 3ULQFLSDO %XVLQHVV &ULWHULD 3%& 0XOWLSOH DQG &DSWLYH 1%)&V 1%)&V DUH
FODVVLILHG LQWR WZR FDWHJRULHV QDPHO\ UHJLVWHUHG DQG H[HPSWHG 5%, ZLOO UHJXODWH WKH DFWLYLWLHV RI
UHJLVWHUHG 1%)&V ([HPSWHG 1%)&V DUH L 1%)&V ZLWK DQ DVVHW VL]H XQGHU ` ODNKV ZKHWKHU
DFFHSWLQJ SXEOLF IXQGV RU QRW DQG LL 1%)&V ZLWK DQ DVVHW VL]H EHORZ ` ODNKV ZKLFK GR QRW
GLUHFWO\RULQGLUHFWO\DFFHVVIXQGVIURPWKHSXEOLF)RUHLJQRZQHGFRPSDQLHVZLOOKDYHWRUHJLVWHUZLWKWKH
5%,LUUHVSHFWLYHRIVL]HRUDFFHSWDQFHRISXEOLFIXQGV7KH3%&IRUFODVVLILFDWLRQRIDQHQWLW\DVDQ1%)&
KDVDOVREHHQUHYLVHGWRLQFOXGHDFRPSDQ\QRWDFFHSWLQJGHSRVLWVZLWK `ODNKVRUPRUHILQDQFLDO
DVVHWVLQDJJUHJDWHDQGRUPRUHRILWLQFRPHLVILQDQFLDOLQFRPH)LQDQFLDOHQWLWLHVWKDWKDYHDVVHWV
RYHU ` ODNKV RI ZKLFK ILQDQFLDO DVVHWV DUH RU ILQDQFLDO LQFRPHV FRQVWLWXWLQJ RI JURVV
LQFRPHVZLOODOVRQHHGWREHUHJLVWHUHGZLWKWKH5%,DV1%)&V
LLL 3UXGHQWLDO5HJXODWLRQV7KH7LHU,FDSLWDOUHTXLUHPHQWKDVEHHQUDLVHGWRIRUDOOFDSWLYH1%)&VDQG
1%)&VRSHUDWLQJZLWKRUPRUHRIWKHWRWDODVVHWVLQVHQVLWLYHVHFWRUVFDSLWDOPDUNHWVFRPPRGLWLHV
DQGUHDOHVWDWH $OORWKHU1%)&VDUHUHTXLUHGWR PDLQWDLQ WKHLU7LHU,FDSLWDODW+RZHYHUDWKUHH
\HDUSHULRGKDVEHHQSURYLGHGZLWKLQZKLFKFRPSOLDQFHZLWKWKHVHQRUPVPXVWEHPDGH$VUHJDUGVDVVHW
FODVVLILFDWLRQ WKH 5%, KDV VRXJKW WR SXW 1%)&V DW SDU ZLWK EDQNV PDQGDWLQJ D GD\ SHULRG IRU
FODVVLILFDWLRQDVDQ13$+RZHYHUWKLVLVSURSRVHGLQDSKDVHG PDQQHU ZLWKDGD\ QRUP IURPWKH
\HDUFRPPHQFLQJ$SULODQGDGD\QRUPIURPWKHVXEVHTXHQW\HDU3URYLVLRQLQJIRUDOOVWDQGDUG
DVVHWV DOVR VWDQGV LQFUHDVHG WR IURP WKH IRUPHU 7R DGGUHVV FRQFHQWUDWLRQ WKH JURXS
UHFRPPHQGHG 7LHU , FDSLWDO WR EH UDLVHG WR LQWURGXFWLRQ RI D OLTXLGLW\ UDWLR DQG DOLJQPHQW RI
SUXGHQWLDO QRUPV ZLWK WKRVH RI EDQNV &DSWLYH 1%)&V finDQFLQJ SDUHQW FRPSDQ\¶V SURGXFWV PD\
PDLQWDLQ7LHU,FDSLWDODWDQGVXSHUYLVRU\ULVNDVVHVVPHQWRIVXFKFRPSDQLHVVKRXOGWDNHLQWRDFFRXQW
WKHULVNRIWKHSDUHQWFRPSDQ\
LY 1%)&VPD\EHVXEMHFWWRUHJXODWLRQVZKLOHXQGHUWDNLQJPDUJLQILQDQFLQJVLPLODUWREDQNVZKLOHOHQGLQJ
WR VWRFN EURNHUV DQG PHUFKDQW EDQNV DQG DV VSHFLfiHG E\ WKH 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD
6(%,WRVWRFNEURNHUV%RDUGDSSURYHGOLPLWVIRUEDQN¶VH[SRVXUHWRUHDOHVWDWHPD\EHPDGHDSSOLFDEOH
IRU WKH EDQN JURXS DV D ZKROH ZKHUH WKHUH LV DQ 1%)& LQ WKH JURXS 7KH ULVN ZHLJKWV IRU VWDQGDORQH
1%)&VPD\EHUDLVHGWRIRUFDSLWDOPDUNHWH[SRVXUHVDQGIRU&RPPHUFLDO5HDO(VWDWH&5(
H[SRVXUHV,QFDVHRIEDQNVSRQVRUHG1%)&VWKHULVNZHLJKWVIRU&DSLWDO0DUNHW([SRVXUHV&0(DQG
&5(PD\EHWKHVDPHDVVSHFLfiHGIRUEDQNVDQG
Y 1%)&VPD\EHJLYHQWKHEHQHILWVXQGHUWKH6$5)$(6,$FW
&RUSRUDWH*RYHUQDQFH
3XUVXDQWWR5%,FLUFXODU5HI1RGDWHG0D\WKH5%,KDVSURSRVHGFHUWDLQ
FRUSRUDWHJRYHUQDQFHJXLGHOLQHVIRUWKHFRQVLGHUDWLRQRIDOO1%)&'ZLWKDGHSRVLWVL]HRI`ODNKV
RUPRUH7KHJXLGHOLQHVUHFRPPHQGWKDWVXFK1%)&VKDYHDQ DXGLWFRPPLWWHHDQRPLQDWLRQFRPPLWWHH
WR HQVXUH WKDW ILW DQG SURSHU SHUVRQV DUH QRPLQDWHG DV GLUHFWRUV RQ WKHLU UHVSHFWLYH ERDUGV DQG D ULVN
PDQDJHPHQWFRPPLWWHHWRLQVWLWXWHULVNPDQDJHPHQWV\VWHPV7KHJXLGHOLQHVKDYHDOVRLVVXHGLQVWUXFWLRQV
UHODWLQJWRFUHGLWIDFLOLWLHVWRGLUHFWRUVORDQVDQGDGYDQFHVWRUHODWLYHVRIWKHGLUHFWRUVRIWKHVDLG1%)&V
RUWRWKHGLUHFWRUVRIRWKHUFRPSDQLHVDQGWKHLUUHODWLYHVDQGRWKHUHQWLWLHVWLPHIUDPHIRUUHFRYHU\RIVXFK
ORDQVHWF6XFK1%)&VDUHDOVRUHTXLUHGWRIUDPHLQWHUQDOFRUSRUDWHJRYHUQDQFHJXLGHOLQHVEDVHGRQWKH
JXLGHOLQHVLVVXHGE\WKH5%,RQ0D\
*XLGHOLQHVRQ3ULYDWH3ODFHPHQWE\1%)&V
3XUVXDQWWRWKH 5%,FLUFXODU GDWHG-XQH 5HI1RWKH5%,KDVLVVXHG
*XLGHOLQHV RQ 3ULYDWH 3ODFHPHQW E\ 1%)&V ³*XLGHOLQHV RQ 3ULYDWH 3ODFHPHQW´ $FFRUGLQJ WR WKH
*XLGHOLQHV RQ 3ULYDWH 3ODFHPHQW WKH RIIHU GRFXPHQW IRU D SULYDWH SODFHPHQW VKRXOG EH LVVXHG ZLWKLQ D
PD[LPXPSHULRGRIVL[PRQWKVIURPWKHGDWHRIWKHERDUGUHVROXWLRQDXWKRUL]LQJWKHLVVXHDQGWKHSULYDWH
SODFHPHQWVKDOOEHUHVWULFWHGWRQRWPRUHWKDQLQYHVWRUVLGHQWLILHGXSIURQWE\WKH1%)&,QUHODWLRQWR
FUHDWLRQRIVHFXULW\IRUGHEHQWXUHVERWKIRUSULYDWHSODFHPHQWDQGSXEOLFLVVXH1%)&VPXVWHQVXUHWKDW
DW DOO SRLQWV RI WLPH WKH GHEHQWXUHV LVVXHG LQFOXGLQJ VKRUW WHUP 1&'V DUH IXOO\ VHFXUHG 7KHUHIRUH LQ
FDVH DW WKH VWDJH RI LVVXH WKH VHFXULW\ FRYHU LV LQVXIILFLHQW RU QRW FUHDWHG WKH LVVXH SURFHHGV VKDOO EH
SODFHG XQGHU HVFURZ XQWLO FUHDWLRQ RI VHFXULW\ ZKLFK LQ DQ\ FDVH VKRXOG EH ZLWKLQ RQH PRQWK IURP WKH
GDWHRILVVXH
5HSRUWLQJE\6WDWXWRU\$XGLWRU
7KH VWDWXWRU\ DXGLWRU RI WKH 1%)&' LV UHTXLUHG WR VXEPLW WR WKH ERDUG RI GLUHFWRUV RI WKH FRPSDQ\ D
UHSRUWLQWHUDOLDFHUWLI\LQJWKDWVXFKFRPSDQ\KDVFRPSOLHGZLWKWKHSUXGHQWLDOQRUPVUHODWLQJWRLQFRPH
UHFRJQLWLRQ DFFRXQWLQJ VWDQGDUGV DVVHW FODVVLILFDWLRQ DQG SURYLVLRQLQJ IRU EDG DQG GRXEWIXO GHEWV DQG
VWDQGDUGDVVHWVDVDSSOLFDEOH WRLW,QWKHHYHQWRIQRQFRPSOLDQFHWKHVWDWXWRU\DXGLWRUVDUHUHTXLUHGWR
GLUHFWO\UHSRUWWKHVDPHWRWKH5%,
)RUHLJQ,QYHVWPHQW5HJXODWLRQV
)(0$5HJXODWLRQV
)RUHLJQ LQYHVWPHQW LQ ,QGLD LV JRYHUQHG SULPDULO\ E\ WKH SURYLVLRQV RI WKH )(0$ DQG WKH UXOHV UHJXODWLRQV DQG
QRWLILFDWLRQVWKHUHXQGHUUHDGZLWKWKHSUHVHQWO\DSSOLFDEOHFRQVROLGDWHG)',SROLF\HIIHFWLYHIURP$SULODV
LVVXHGE\WKH'HSDUWPHQWRI,QGXVWULDO3ROLF\DQG3URPRWLRQ³',33´
7KH5%,LQH[HUFLVHRILWVSRZHUVXQGHUWKH)(0$KDVQRWLILHGWKH)RUHLJQ([FKDQJH0DQDJHPHQW7UDQVIHURU,VVXH
RI 6HFXULW\ E\ D 3HUVRQ 5HVLGHQW 2XWVLGH ,QGLD 5HJXODWLRQV ³)(0$ 5HJXODWLRQV´ WR SURKLELW UHVWULFW RU
UHJXODWHWUDQVIHUE\RULVVXHRIVHFXULW\WRDSHUVRQUHVLGHQWRXWVLGH,QGLD
)RUHLJQ'LUHFW,QYHVWPHQW
)',LVSHUPLWWHGH[FHSWLQFHUWDLQSURKLELWHGVHFWRUVLQ,QGLDQFRPSDQLHVHLWKHUWKURXJKWKHDXWRPDWLFURXWHRUWKH
DSSURYDOURXWHGHSHQGLQJXSRQWKHVHFWRULQ ZKLFK)',LVVRXJKWWREH PDGH8QGHUWKHDXWRPDWLFURXWH QRSULRU
JRYHUQPHQW DSSURYDO LV UHTXLUHG IRU WKH LVVXH RI VHFXULWLHV E\ ,QGLDQ FRPSDQLHV DFTXLVLWLRQ RI VHFXULWLHV RI ,QGLDQ
FRPSDQLHVVXEMHFWWRWKHVHFWRUDOFDSVDQGRWKHUSUHVFULEHGFRQGLWLRQV8QGHUWKHDSSURYDOURXWHSULRUDSSURYDOIURP
WKH),3%RU5%,LVUHTXLUHG)',IRUWKHLWHPVDFWLYLWLHVWKDWFDQQRWEHEURXJKWLQXQGHUWKHDXWRPDWLFURXWHPD\EH
EURXJKWLQWKURXJKWKHDSSURYDOURXWH
)XUWKHU
D $VSHUWKHVHFWRUVSHFLILFJXLGHOLQHVRIWKH*RYHUQPHQWRI,QGLD)',15,LQYHVWPHQWVDUHDOORZHG
XQGHUWKHDXWRPDWLFURXWHLQFHUWDLQ1%)&DFWLYLWLHVVXEMHFWWRFRPSOLDQFHZLWKJXLGHOLQHVRIWKH5%,LQ
WKLVUHJDUG
E 0LQLPXP&DSLWDOLVDWLRQ1RUPVIRUIXQGEDVHG1%)&V
L )RU)',XSWR86ODNKVWREHSXWXSIURQW
LL )RU)',DERYHDQGXSWR86ODNKVWREHSXWXSIURQW
LLL )RU)',DERYHDQGXSWR86ODNKVRXWRIZKLFK86ODNKVWREHSXWXSIURQW
DQGWKHEDODQFHLQPRQWKV
0LQLPXP FDSLWDOLVDWLRQ QRUP RI 86 ODNKV LV DSSOLFDEOH LQ UHVSHFW RI DOO SHUPLWWHG QRQ IXQG EDVHG
1%)&VZLWKIRUHLJQLQYHVWPHQW
F 6XFKDQ1%)&FDQQRWKRZHYHUVHWXSDQ\VXEVLGLDU\IRUDQ\RWKHUDFWLYLW\QRUFDQLWSDUWLFLSDWHLQDQ\
HTXLW\RIDQ1%)&KROGLQJRSHUDWLQJFRPSDQ\
G 1%)&VKDYLQJIRUHLJQLQYHVWPHQWRI PRUHWKDQDQGXSWRFDQVHWXSVWHSGRZQVXEVLGLDULHV
ZLWKRXWWKHFRQGLWLRQWRGLVLQYHVWDPLQLPXPRIRILWVHTXLW\WR,QGLDQHQWLWLHVVXEMHFWWREULQJLQJ
LQ86ODNKVDVDWELLLDERYHZLWKRXWDQ\UHVWULFWLRQRQQXPEHURIRSHUDWLQJVXEVLGLDULHVZLWKRXW
EULQJLQJLQDGGLWLRQDOFDSLWDO
H
-RLQWYHQWXUHVRSHUDWLQJ1%)&¶VWKDWKDYHRUOHVVWKDQIRUHLJQLQYHVWPHQWZLOODOVREHDOORZHG
WR VHW XS VXEVLGLDULHV IRU XQGHUWDNLQJ RWKHU 1%)& DFWLYLWLHV VXEMHFW WR WKH VXEVLGLDULHV DOVR FRPSO\LQJ
ZLWKWKHDSSOLFDEOHPLQLPXPFDSLWDOLQIORZLHELDQGELLDERYH
/DZVUHODWLQJWR(PSOR\PHQW
6KRSVDQG(VWDEOLVKPHQWVOHJLVODWLRQVLQYDULRXVVWDWHV
7KHSURYLVLRQVRIYDULRXV6KRSVDQG(VWDEOLVKPHQWVOHJLVODWLRQVDVDSSOLFDEOHUHJXODWHWKHFRQGLWLRQVRIZRUN
DQGHPSOR\PHQWLQVKRSVDQGFRPPHUFLDOHVWDEOLVKPHQWVDQGJHQHUDOO\SUHVFULEHREOLJDWLRQVLQUHVSHFWRILQWHU
DOLDUHJLVWUDWLRQRSHQLQJDQGFORVLQJKRXUVGDLO\DQGZHHNO\ZRUNLQJKRXUVKROLGD\VOHDYHKHDOWKDQGVDIHW\
PHDVXUHVDQGZDJHVIRURYHUWLPHZRUN
/DERXU/DZV
2XU &RPSDQ\ LV UHTXLUHG WRFRPSO\ ZLWK YDULRXV ODERXU ODZV LQFOXGLQJ WKH 0LQLPXP :DJHV $FW WKH
3D\PHQW RI %RQXV $FW WKH 3D\PHQW RI :DJHV $FW WKH 3D\PHQW RI *UDWXLW\ $FW DQG WKH
(PSOR\HHV¶3URYLGHQW)XQGVDQG0LVFHOODQHRXV3URYLVLRQV$FW
/DZVUHODWLQJWR,QWHOOHFWXDO3URSHUW\
7UDGH0DUNV$FW
7KH7UDGH0DUNV$FWWKH³7UDGHPDUN$FW´JRYHUQVWKHVWDWXWRU\SURWHFWLRQRIWUDGHPDUNVLQ,QGLD,Q,QGLD
WUDGHPDUNVHQMR\SURWHFWLRQXQGHUERWKVWDWXWRU\DQGFRPPRQODZ,QGLDQWUDGHPDUNVODZSHUPLWVWKHUHJLVWUDWLRQRI
WUDGHPDUNV IRU JRRGV DQG VHUYLFHV &HUWLILFDWLRQ WUDGHPDUNV DQG FROOHFWLYH PDUNV DUH DOVR UHJLVWHUDEOH XQGHU WKH
7UDGHPDUN$FW
$QDSSOLFDWLRQIRUWUDGHPDUNUHJLVWUDWLRQPD\EHPDGHE\DQ\SHUVRQFODLPLQJWREHWKHSURSULHWRURIDWUDGHPDUNDQG
FDQEHPDGHRQWKHEDVLVRIHLWKHUFXUUHQWXVHRULQWHQWLRQWRXVHDWUDGHPDUNLQWKHIXWXUH7KHUHJLVWUDWLRQRIFHUWDLQ
W\SHVRIWUDGHPDUNVLVDEVROXWHO\SURKLELWHGLQFOXGLQJWUDGHPDUNVWKDWDUHQRWGLVWLQFWLYHDQGZKLFKLQGLFDWHWKHNLQGRU
TXDOLW\RIWKHJRRGV
$SSOLFDWLRQV IRU D WUDGHPDUN UHJLVWUDWLRQ PD\ EH PDGH IRU LQ RQH RU PRUH LQWHUQDWLRQDO FODVVHV 2QFH JUDQWHG
WUDGHPDUNUHJLVWUDWLRQLVYDOLGIRUWHQ\HDUVXQOHVVFDQFHOOHG,IQRWUHQHZHGDIWHUWHQ\HDUVWKHPDUNODSVHVDQGWKH
UHJLVWUDWLRQIRUVXFKPDUNKDVWREHREWDLQHGDIUHVK
:KLOHERWKUHJLVWHUHGDQGXQUHJLVWHUHGWUDGHPDUNVDUHSURWHFWHGXQGHU,QGLDQODZWKHUHJLVWUDWLRQRIWUDGHPDUNVRIIHUV
VLJQLILFDQWDGYDQWDJHVWRWKHUHJLVWHUHGRZQHUSDUWLFXODUO\ZLWKUHVSHFWWRSURYLQJLQIULQJHPHQW5HJLVWHUHGWUDGHPDUNV
PD\EHSURWHFWHGE\PHDQVRIDQDFWLRQIRULQIULQJHPHQWZKHUHDVXQUHJLVWHUHGWUDGHPDUNVPD\RQO\EHSURWHFWHGE\
PHDQVRIWKHFRPPRQODZUHPHG\RISDVVLQJRII,QFDVHRIWKHODWWHUWKHSODLQWLIIPXVWSULRUWRSURYLQJSDVVLQJRII
ILUVWSURYHWKDWKHLVWKHRZQHURIWKHWUDGHPDUNFRQFHUQHG,QFRQWUDVWWKHRZQHURIDUHJLVWHUHGWUDGHPDUNLVSULPD
IDFLHUHJDUGHGDVWKHRZQHURIWKHPDUNE\YLUWXHRIWKHUHJLVWUDWLRQREWDLQHG
,Q DGGLWLRQ WR WKH DERYH RXU &RPSDQ\ LV UHTXLUHG WR FRPSO\ ZLWK WKH SURYLVLRQV RI WKH &RPSDQLHV $FW WKH
&RPSDQLHV $FW WR WKH H[WHQW DSSOLFDEOH WKH )RUHLJQ ([FKDQJH 0DQDJHPHQW $FW YDULRXV WD[ UHODWHG
OHJLVODWLRQVDQGRWKHUDSSOLFDEOHVWDWXWHV
HISTORY AND CERTAIN CORPORATE MATTERS
2XU &RPSDQ\ ZDV LQFRUSRUDWHG DV 6KULUDP +LUH3XUFKDVH )LQDQFH 3ULYDWH /LPLWHG RQ 0DUFK DV D
SULYDWHOLPLWHGFRPSDQ\XQGHUWKH&RPSDQLHV$FWDQGZDVJUDQWHGDFHUWLILFDWHRILQFRUSRUDWLRQE\WKH
5R&:LWKHIIHFWIURP2FWREHUWKHVWDWXVRIRXU&RPSDQ\ZDVFKDQJHGWRDSXEOLFOLPLWHGFRPSDQ\
SXUVXDQWWRZKLFKWKHQDPHRIRXU&RPSDQ\ZDVFKDQJHGWR6KULUDP+LUH3XUFKDVH)LQDQFH/LPLWHG7KHQDPH
RI RXU &RPSDQ\ ZDV VXEVHTXHQWO\ FKDQJHG WR 6KULUDP &LW\ 8QLRQ )LQDQFH /LPLWHG DQG D IUHVK FHUWLILFDWH RI
LQFRUSRUDWLRQGDWHG$SULOZDVLVVXHGE\WKH5R&7KHFRUSRUDWHLGHQWLILFDWLRQQXPEHURIRXU&RPSDQ\
LV/713/&
2XU&RPSDQ\KROGVDFHUWLILFDWHRIUHJLVWUDWLRQGDWHG$SULOLVVXHGLQOLHXRIWKHRULJLQDOUHJLVWUDWLRQ
GDWHG 6HSWHPEHU EHDULQJ UHJLVWUDWLRQ QR LVVXHG E\ WKH 5%, WR FDUU\ RQ WKH DFWLYLWLHV RI D
1%)&XQGHUVHFWLRQ,$RIWKH5%,$FW
)RU GHWDLOV LQ UHODWLRQ WR RXU EXVLQHVV DFWLYLWLHV DQG LQYHVWPHQWV SOHDVH VHH VHFWLRQ WLWOHG ³2XU %XVLQHVV´ RQ
SDJH
0DMRUHYHQWV
<HDU
(YHQW
,QFRUSRUDWLRQRIRXU&RPSDQ\
&RQYHUWHGWRDSXEOLFOLPLWHGFRPSDQ\
/LVWHGRQ%6(
/LVWHGRQ16(
/DXQFKHGµ6PDOO(QWHUSULVH)LQDQFH¶
3UHIHUHQWLDODOORWPHQWRI(TXLW\6KDUHVWRFHUWDLQLQYHVWRUV
/DXQFKHGµ/RDQ$JDLQVW*ROG¶
3UHIHUHQWLDODOORWPHQWRI(TXLW\6KDUHVWRFHUWDLQLQYHVWRUV
5HDFKHGQHWZRUWKRI`ODNKV
,QFRUSRUDWHGRXU6XEVLGLDU\6KULUDP+RXVLQJ)LQDQFH/LPLWHG
&RPSOHWHG\HDUVRIEXVLQHVV
0DLQREMHFWV
2XUPDLQREMHFWVDVFRQWDLQHGLQRXU0HPRUDQGXPRI$VVRFLDWLRQLQWHUDOLDDUH
7ROHQGPRQH\RQVHFXULW\RQPRYDEOHRULPPRYDEOHSURSHUWLHVRUDQ\VKDUHVRUVHFXULWLHVRIDQ\QDWXUHRU
ZLWKRXWVHFXULW\DQGWRQHJRWLDWHORDQV
7RXQGHUWDNHDQGFDUU\RQWKHEXVLQHVVRIILQDQFLQJKLUHSXUFKDVHFRQWUDFWVUHODWLQJWRSURSHUW\RUDVVHWVRI
DQ\GHVFULSWLRQHLWKHUIL[HGRUPRYDEOHDQGLQSDUWLFXODUUHODWLQJWRKRXVHVODQGVJRYHUQPHQWERQGVJRRGV
FKDWWHOV PRWRUFDUV PRWRUEXVHV PRWRUORUULHV DXWRULFNVKDZV RPQLEXVHV WULF\FOHV VFRRWHUV ELF\FOHV
XQLF\FOHV TXDGULF\FOHV YHORFLSHGHV FDUULDJHV DQG YHKLFOHV RI DOO NLQGV ZKHWKHU PHFKDQLFDOO\ SURSHOOHG E\
VWHDPRLOJDVSHWURORUHOHFWULFLW\RURWKHUZLVHWUDFWRUVEXOOLRQVWRFNVVKDUHVWHOHYLVLRQVHWVPDFKLQHULHVRI
DOONLQGVSXPSVHWVUHIULJHUDWRUVHOHFWULFDQGHOHFWURQLFJRRGVDQGRWKHUKRXVHKROGDUWLFOHV
7RDFTXLUHLPSURYHPDQDJHZRUNGHYHORSH[HUFLVHDOOULJKWVLQUHVSHFWRIOHDVHVDQGPRUWJDJHVDQGWRVHOO
GLVSRVH RI WXUQ WR DFFRXQW DQG RWKHUZLVH GHDO ZLWK SURSHUW\ RI DOO NLQGV DQG LQ SDUWLFXODU ODQG EXLOGLQJV
FRQFHVVLRQVSDWHQWVEXVLQHVVFRQFHUQVDQGXQGHUWDNLQJV
*HQHUDOO\ WR FDUU\ RQ DQG XQGHUWDNH DQ\ EXVLQHVV RU RSHUDWLRQ FRPPRQO\ FDUULHG RQ RU XQGHUWDNHQ E\
FDSLWDOLVWVILQDQFLHUV
7RERUURZRUWDNHGHSRVLWVRIPRQH\RQLQWHUHVWRURWKHUZLVHIURPDQ\SHUVRQRUSHUVRQVORFDODXWKRULW\RU
JRYHUQPHQWDQGDGYDQFHOHQGRUGHSRVLWDQ\VXFKPRQH\RURWKHUPRQH\VRIWKH&RPSDQ\IRUWKHWLPHEHLQJ
RQ VXFK VHFXULW\ RU RWKHUZLVH DV WKH &RPSDQ\ PD\ GHHP H[SHGLHQW %XW WKH &RPSDQ\ VKDOO QRW GR DQ\
EDQNLQJEXVLQHVVDVGHILQHGLQWKH%DQNLQJ5HJXODWLRQ$FW
7RFDUU\RQEXVLQHVVRIDQ LQYHVWPHQWFRPSDQ\RUDQLQYHVWPHQWWUXVWFRPSDQ\WRXQGHUWDNHDQGWUDQVDFW
WUXVWDQGDJHQF\LQYHVWPHQWILQDQFLDOEXVLQHVVILQDQFLHUVDQGIRUWKDWSXUSRVHWROHQGRULQYHVWPRQH\DQG
QHJRWLDWH ORDQV LQ DQ\ IRUP RU PDQQHU WR GUDZ DFFHSW HQGRUVH GLVFRXQW EX\ VHOO DQG GHDO LQ ELOOV RI
H[FKDQJH KXQGLHV SURPLVVRU\ QRWHV DQG RWKHU QHJRWLDEOH LQVWUXPHQWV DQG VHFXULWLHV DQG DOVR WR LVVXH RQ
FRPPLVVLRQWRVXEVFULEHIRUXQGHUZULWHWDNHDFTXLUHDQGKROGVHOODQGH[FKDQJHDQGGHDOLQVKDUHVVWRFNV
ERQGV RU GHEHQWXUHV RU VHFXULWLHV RI DQ\ JRYHUQPHQW RU SXEOLF DXWKRULW\ RU FRPSDQ\ JROG DQG VLOYHU DQG
EXOOLRQ DQG WR IRUP SURPRWH VXEVLGLVH DQG DVVLVW FRPSDQLHV V\QGLFDWHV DQG SDUWQHUVKLS WR SURPRWH DQG
ILQDQFHLQGXVWULDOHQWHUSULVHVDQGDOVRWRJLYHDQ\JXDUDQWHHVIRUSD\PHQWRIPRQH\RUSHUIRUPDQFHRIDQ\
REOLJDWLRQRUXQGHUWDNLQJWRJLYHDGYDQFHVORDQVDQGVXEVFULEHWRWKHFDSLWDORILQGXVWULDOXQGHUWDNLQJVDQG
WR XQGHUWDNH DQ\ EXVLQHVV WUDQVDFWLRQ RU RSHUDWLRQ FRPPRQO\ FDUULHG RQ RU XQGHUWDNHQ E\ FDSLWDOLVWV
SURPRWHUVILQDQFLHUVDQGXQGHUZULWHUVDQG
7RDFWDVLQYHVWRUVJXDUDQWRUVXQGHUZULWHUVDQGILQDQFHUVZLWKWKHREMHFWRIILQDQFLQJLQGXVWULDOHQWHUSULVHV
WR OHQG RU GHDO ZLWK WKH PRQH\ HLWKHU ZLWK RU ZLWKRXW LQWHUHVW RU VHFXULW\ LQFOXGLQJ LQ FXUUHQW RU GHSRVLW
DFFRXQWZLWKDQ\EDQNRUEDQNVRWKHUSHUVRQRUSHUVRQVXSRQVXFKWHUPVFRQGLWLRQVDQGPDQQHUDVPD\IURP
WLPHWRWLPHEHGHWHUPLQHGDQGWRUHFHLYHPRQH\RQGHSRVLWRUORDQXSRQVXFKWHUPVDQGFRQGLWLRQVDVWKH
FRPSDQ\PD\DSSURYH3URYLGHGWKDWWKH&RPSDQ\VKDOOQRWGRDQ\EDQNLQJEXVLQHVVDVGHILQHGXQGHUWKH
%DQNLQJ5HJXODWLRQ$FW
7KH PDLQ REMHFWV FODXVH DQG WKH REMHFWV LQFLGHQWDO RU DQFLOODU\ WR WKH PDLQ REMHFWV RI RXU 0HPRUDQGXP RI
$VVRFLDWLRQHQDEOHXVWRXQGHUWDNHRXUH[LVWLQJDFWLYLWLHVDQGWKHDFWLYLWLHVIRUZKLFKWKHIXQGVDUHEHLQJUDLVHG
WKURXJKWKLV,VVXH
+ROGLQJFRPSDQ\
2XU&RPSDQ\GRHVQRWKDYHDKROGLQJFRPSDQ\
6XEVLGLDU\FRPSDQ\
6KULUDP+RXVLQJ)LQDQFH/LPLWHG
6KULUDP+RXVLQJ)LQDQFH/LPLWHG³6+)/´RXU6XEVLGLDU\ZDVLQFRUSRUDWHGXQGHUWKH&RPSDQLHV$FW
RQ1RYHPEHU,WVUHJLVWHUHGRIILFHLVVLWXDWHGDW$QJDSSD1DLFNHQ6WUHHW&KHQQDL7DPLO
1DGX,QGLD7KH PDLQREMHFWVRIWKHFRPSDQ\DUH LQWHUDOLDWRFDUU\RQWKHEXVLQHVVRISURYLGLQJORQJWHUP
ILQDQFHIRUFRQVWUXFWLRQRUSXUFKDVHRIDKRXVHIODWRUDQ\SDUWRUSRUWLRQVWKHUHRIIRUUHVLGHQWLDORUFRPPHUFLDO
SXUSRVHVDQGWRDFWDVDVHFXULWLVDWLRQDQGUHFRQVWUXFWLRQFRPSDQ\XQGHUWKH6$5)$(6,$FW$VRQ'HFHPEHU
RXU&RPSDQ\KROGVRIHTXLW\VKDUHVRIIDFHYDOXHRI `HDFKLQ6+)/
6FKHPHRI$UUDQJHPHQW
7KH FRPSRVLWH VFKHPH RI DUUDQJHPHQW EHWZHHQ 6KULUDP 5HWDLO +ROGLQJV 3ULYDWH /LPLWHG ³65+3/´
6KULUDP(QWHUSULVH+ROGLQJV3ULYDWH/LPLWHG³6(+3/´RXU&RPSDQ\DQGWKHUHVSHFWLYHVKDUHKROGHUVDQG
FUHGLWRUV³6FKHPHRI$UUDQJHPHQW´
7KH 6FKHPH RI $UUDQJHPHQW ZDV DSSURYHG E\ WKH +LJK &RXUW RI 0DGUDV E\ DQ RUGHU GDWHG -XQH DFFRUGLQJ WR ZKLFK 6(+3/ ZDV PHUJHG LQWR 65+3/ ³)LUVW 0HUJHU´ DQG WKH HQWLW\ IRUPHG SRVW WKH )LUVW
0HUJHU ³&RQVROLGDWHG 65+3/´ ZDV PHUJHG LQWR RXU &RPSDQ\ ³6HFRQG 0HUJHU´ WR LQWHU DOLD UHGXFH
VKDUHKROGLQJWLHUVRSWLPL]HDGPLQLVWUDWLYHFRVWVDQGHQDEOHWKHVKDUHKROGHUVRI65+3/WRKROG(TXLW\6KDUHV
GLUHFWO\LQRXU&RPSDQ\
7KH DSSRLQWHG GDWH XQGHU WKH 6FKHPH RI $UUDQJHPHQW IRU WKH )LUVW 0HUJHU ZDV $SULO DQG IRU WKH
6HFRQG0HUJHU$XJXVW
3XUVXDQWWRWKHDSSURYDORIWKH6FKHPHRI$UUDQJHPHQWE\WKH+LJK&RXUWRI0DGUDVE\DQRUGHUGDWHG-XQH
&RQVROLGDWHG65+3/ZDVPHUJHGZLWKRXU&RPSDQ\ZLWKHIIHFWIURP$XJXVWDQG 65+3/DQG
6(+3/VWRRGGLVVROYHGZLWKRXWEHLQJZRXQGXS
3XUVXDQWWRWKH6FKHPHRI$UUDQJHPHQWRXU&RPSDQ\LVVXHGDQGDOORWWHGWRHDFKPHPEHURIWKH&RQVROLGDWHG
65+3/(TXLW\6KDUHVLQWKHUDWLRRI DGMXVWHGIURPLQWHUPVRI 6FKHPH RI $UUDQJHPHQWLH
(TXLW\6KDUHVIXOO\SDLGXSLVVXHGIRUHYHU\HTXLW\VKDUHVRIWKHIDFHYDOXHRI `HDFKIXOO\SDLGXS
RIWKH&RQVROLGDWHG65+3/KHOGE\WKHPHPEHU'HWDLOVRIWKH(TXLW\6KDUHVDOORWWHGWRVXFKPHPEHUVDUHDV
EHORZ
1DPHRIDOORWWHH
6&/
73*,QGLD,QYHVWPHQWV,,QF
1RRI(TXLW\6KDUHVDOORWWHG
'DWHRIDOORWPHQW
$XJXVW
$XJXVW
0DWHULDO$JUHHPHQWV
,QYHVWRUDQGVKDUHVXEVFULSWLRQDJUHHPHQWV
,QYHVWPHQWDJUHHPHQWGDWHG0D\EHWZHHQ$VLDEULGJH)XQG,//&³$VLDEULGJH´DQG
RXU&RPSDQ\³,QYHVWRU$JUHHPHQW,´
2XU &RPSDQ\ HQWHUHG LQWR DQ DJUHHPHQW ZLWK $VLDEULGJH IRU WKH SXUSRVH RI LVVXH DQG DOORWPHQW RI
(TXLW\ 6KDUHV DQG ZDUUDQWV WR $VLDEULGJH 3XUVXDQW WR WKH ,QYHVWPHQW $JUHHPHQW , $VLDEULGJH
VXEVFULEHGWR(TXLW\6KDUHVDWDSULFHRI `SHU(TXLW\6KDUHDQGZDUUDQWVHDFK
FRQYHUWLEOH WR RQH (TXLW\ 6KDUH RI RXU &RPSDQ\ DW SULFH RI ` SHU ZDUUDQW 6RPH RI WKH PDLQ
SURYLVLRQVRIWKH,QYHVWPHQW$JUHHPHQW,DUHVXPPDUL]HGEHORZ
,QIRUPDWLRQ 5LJKWV $VLDEULGJH LV HQWLWOHG WR FHUWDLQ LQIRUPDWLRQ ULJKWV DV VHW RXW LQ WKH ,QYHVWPHQW
$JUHHPHQW,,QWKHHYHQWDQ\LQIRUPDWLRQULJKWVDUHSURYLGHGWRFHUWDLQRWKHULQYHVWRUVWKHVDPHULJKWV
VKDOOEHSURYLGHGWR$VLDEULGJH
1RQ WHUPLQDWLRQ RI DUUDQJHPHQWV ZLWK FRQQHFWHG SHUVRQV 2XU &RPSDQ\ LV UHTXLUHG WR VHHN SULRU
ZULWWHQFRQVHQWRI$VLDEULGJHEHIRUHWHUPLQDWLQJDQ\RILWVPDWHULDOFRQWUDFWVRUDUUDQJHPHQWVZLWKLWV
DIILOLDWHVLQUHODWLRQWRVKDULQJRILQIUDVWUXFWXUHRUIDFLOLWLHV
7HUPDQGWHUPLQDWLRQ(LWKHUSDUW\KDVWKHULJKWWRWHUPLQDWH,QYHVWPHQW$JUHHPHQW,,DQ\WLPHEHIRUH
WKHGDWHRQZKLFKFORVLQJVKDOOKDYHWDNHQSODFHGXHWRDEUHDFKRIWKHUHSUHVHQWDWLRQVZDUUDQWLHVRU
FRYHQDQWV
,QYHVWPHQW DJUHHPHQW GDWHG 0D\ EHWZHHQ %HVVHPHU 9HQWXUHV 3DUWQHUV ³%HVVHPHU´
DQGRXU&RPSDQ\³,QYHVWPHQW$JUHHPHQW,,´
2XU &RPSDQ\ HQWHUHG LQWR DQ DJUHHPHQW ZLWK %HVVHPHU IRU WKH SXUSRVH RI LVVXH DQG DOORWPHQW RI
(TXLW\ 6KDUHV DQG ZDUUDQWV WR %HVVHPHU 3XUVXDQW WR WKH ,QYHVWPHQW $JUHHPHQW ,, %HVVHPHU
VXEVFULEHGWR(TXLW\6KDUHVDWDSULFHRI`SHU(TXLW\6KDUHDQGZDUUDQWVHDFK
FRQYHUWLEOH WR RQH (TXLW\ 6KDUH RI RXU &RPSDQ\ DW SULFH RI ` SHU ZDUUDQW 6RPH RI WKH PDLQ
SURYLVLRQVRIWKH,QYHVWPHQW$JUHHPHQW,,DUHVXPPDUL]HGEHORZ
,QYHVWRUULJKWV
L
5LJKWWRDSSRLQWREVHUYHU%HVVHPHUKDVDULJKWWRDSSRLQWDQREVHUYHUWRWKH%RDUGZKRZLOO
EHHQWLWOHGWRDWWHQGDOOPHHWLQJVRIWKH%RDUG
LL
3UHHPSWLYHULJKWRQIXUWKHULVVXHVRIFDSLWDO,IRXU&RPSDQ\VKRXOGXQGHUWDNHDQ\IXUWKHU
LVVXHRIHTXLW\VKDUHVDQGRUDQ\RWKHULQVWUXPHQWFRQYHUWLEOHLQWRHTXLW\VKDUHV%HVVHPHULV
HQWLWOHG WR EH RIIHUHG VXFK HTXLW\ VKDUHV DQGRU RWKHU LQVWUXPHQWV RQ WKH VDPH WHUPV DV WKH
SURSRVHGLVVXDQFHVRDVWRHQDEOH%HVVHPHUWRPDLQWDLQLWVVKDUHKROGLQJLQRXU&RPSDQ\DW
WKHVDPHOHYHODVLWKDGSULRUWRVXFKIXUWKHULVVXH7KLVULJKWLVDYDLODEOHWR%HVVHPHUDVORQJ
DVWKHVKDUHKROGLQJRI%HVVHPHULQRXU&RPSDQ\LVPRUHWKDQRIWKHSDLGXSHTXLW\VKDUH
FDSLWDORIRXU&RPSDQ\
LLL
,QIRUPDWLRQULJKWV$VORQJDVWKHVKDUHKROGLQJRI%HVVHPHULVPRUHWKDQRIWKHSDLGXS
HTXLW\VKDUHFDSLWDORIRXU&RPSDQ\%HVVHPHULVHQWLWOHGWRFHUWDLQLQIRUPDWLRQULJKWVDVVHW
RXWLQWKH,QYHVWPHQW$JUHHPHQW,,,QWKHHYHQWWKDWWKHVKDUHKROGLQJRI%HVVHPHUIDOOVEHORZ
DQG WKHUHDIWHU %HVVHPHU DFTXLUHV DGGLWLRQDO VKDUHV RI RXU &RPSDQ\ VR DV WR WDNH WKH
VKDUHKROGLQJ RI %HVVHPHU LQ RXU &RPSDQ\ WR PRUH WKDQ WKH LQIRUPDWLRQ ULJKWV ZLOO QR
ORQJHU EH DYDLODEOH WR %HVVHPHU +RZHYHU QRWZLWKVWDQGLQJ WKH LQIRUPDWLRQ ULJKWV RI WKH
%HVVHPHU RXU &RPSDQ\ VKDOO SXEOLVK DQ\ XQSXEOLVKHG SULFH VHQVLWLYH LQIRUPDWLRQ EHIRUH
SURYLGLQJ LW WR %HVVHPHU DQG %HVVHPHU DJUHHV WKDW WKHVH LQIRUPDWLRQ ULJKWV VKDOO UHPDLQ
VXVSHQGHG GXULQJ WKH WLPH WKH %RDUG ZLWKKROGV WKH SXEOLFDWLRQ RI VXFK SULFH VHQVLWLYH
LQIRUPDWLRQ
1RQ WHUPLQDWLRQ RI DUUDQJHPHQWV ZLWK FRQQHFWHG SHUVRQV 2XU &RPSDQ\ LV UHTXLUHG WR VHHN SULRU
ZULWWHQFRQVHQWRI%HVVHPHUEHIRUHWHUPLQDWLQJDQ\RILWVPDWHULDOFRQWUDFWVRUDUUDQJHPHQWVZLWKVXFK
SHUVRQV GHVFULEHG DV µFRQQHFWHG SHUVRQV¶ LQ WKH ,QYHVWPHQW $JUHHPHQW ,, LQ UHODWLRQ WR VKDULQJ RI
LQIUDVWUXFWXUHRUIDFLOLWLHV
7HUPDQGWHUPLQDWLRQ(LWKHUSDUW\KDVWKHULJKWWRWHUPLQDWH,QYHVWPHQW$JUHHPHQW,,DQ\WLPHEHIRUH
WKHGDWHRQZKLFKFORVLQJVKDOOKDYHWDNHQSODFHGXHWRDEUHDFKRIWKHUHSUHVHQWDWLRQVZDUUDQWLHVRU
FRYHQDQWV,QWKHHYHQWWKHVKDUHKROGLQJRI%HVVHPHUZKLFKVKDOOLQFOXGHZDUUDQWVRQDIXOO\GLOXWHG
EDVLVDQGDQ\SXUFKDVHE\ %HVVHPHURIWKHVKDUHVRIRXU&RPSDQ\LQDSULPDU\LVVXDQFHRUWKURXJK
VHFRQGDU\ SXUFKDVHV IDOOV EHORZ RI WKH SDLG XS VKDUH FDSLWDO RI RXU &RPSDQ\ WKH ULJKWV RI
%HVVHPHUXQGHUWKLVDJUHHPHQWVKDOOWHUPLQDWH7KHFXUUHQWVKDUHKROGLQJRI%HVVHPHULQRXU&RPSDQ\
RQDIXOO\GLOXWHGEDVLVLV
,QYHVWPHQWDJUHHPHQWGDWHG'HFHPEHUEHWZHHQ9DQ*RJK/LPLWHG³9DQ*RJK´ DQG
RXU &RPSDQ\ ³,QYHVWPHQW $JUHHPHQW ,,,´ DV DPHQGHG E\ WKH VXEVFULSWLRQ DQG DPHQGPHQW
DJUHHPHQWGDWHG0D\³$PHQGPHQW$JUHHPHQW´
2XU &RPSDQ\ HQWHUHG LQWR DQ DJUHHPHQW ZLWK 9DQ *RJK IRU WKH SXUSRVH RI LVVXH DQG DOORWPHQW RI
(TXLW\ 6KDUHV WR 9DQ *RJK 3XUVXDQW WR WKH ,QYHVWPHQW $JUHHPHQW ,,, 9DQ *RJK VXEVFULEHG WR
(TXLW\ 6KDUHV DW D SULFH RI ` SHU (TXLW\ 6KDUH )XUWKHU SXUVXDQW WR WKH $PHQGPHQW
$JUHHPHQWRXU&RPSDQ\LVVXHGDQGDOORWWHGWR9DQ*RJK(TXLW\6KDUHVDWDSULFHRI `
SHU(TXLW\6KDUHDQGZDUUDQWVDWDSULFHRI `SHU(TXLW\6KDUHSD\DEOHRQWKHH[HUFLVHRI
HDFKZDUUDQW6RPHRIWKHPDLQSURYLVLRQVRIWKH,QYHVWPHQW$JUHHPHQW,,,DUHVXPPDUL]HGEHORZ
,QGHPQLWLHV 2XU &RPSDQ\ ZLOO LQGHPQLI\ L 9DQ *RJK LWV DIILOLDWHV DQG HPSOR\HHV DQG LL WKH
LQYHVWRU JURXS DV GHVFULEHG LQ WKH ,QYHVWPHQW $JUHHPHQW ,,, DJDLQVW DQ\ ORVVHV DULVLQJ RXW RI
PLVUHSUHVHQWDWLRQVRUEUHDFKRIDQ\ZDUUDQW\FRVWVDQGH[SHQVHVLQFXUUHGLQUHVSHFWRIDQ\FODLP
%RDUG RI 'LUHFWRUV 2XU &RPSDQ\ 9DQ *RJK DQG 2WKHU 1HZ ,QYHVWRUV , DV GHVFULEHG LQ WKH
,QYHVWPHQW$JUHHPHQW,,,ZLOOMRLQWO\DJUHHRQDSDQHORIVL[LQGHSHQGHQWGLUHFWRUVRXWRIZKLFKWKUHH
ZLOO EH DSSRLQWHG E\ RXU &RPSDQ\ IRU D SHULRG RI ILYH \HDUV DQG ZLOO QRW EH HOLJLEOH WR UHWLUH E\
URWDWLRQ9DQ*RJKDOVRKDVDULJKWWRDSSRLQWDQREVHUYHUZKRLVHQWLWOHGWRDWWHQGDQ\DQGDOO%RDUG
PHHWLQJV
5HVHUYHG PDWWHUV 2XU &RPSDQ\ LV UHTXLUHG WR VHHN FRQVHQW IURP 9DQ *RJK EHIRUH SDVVLQJ DQ\
UHVROXWLRQRUWDNLQJDQ\GHFLVLRQVZLWKUHVSHFWWRDUHVHUYHGPDWWHU5HVHUYHGPDWWHUVLQFOXGHDSSURYDO
RIDQDQQXDOEXVLQHVVSODQRSHUDWLQJEXGJHWDQ\PDWHULDOGHYLDWLRQVIURPWKHDSSURYHGEXVLQHVVSODQ
HQWHULQJ LQWR RU PRGLI\LQJ WUDQVDFWLRQV ZLWK FRQQHFWHG SHUVRQVFRQFHUQV PDNLQJ LQYHVWPHQWV RU
DFTXLULQJ VKDUHV H[FHHGLQJ ` ODNKV WUDQVIHU RU GLVSRVDO RI DQ\ PDWHULDO SDUW RI RXU &RPSDQ\¶V
EXVLQHVVFKDQJHVLQWKHPHPRUDQGXPRUDUWLFOHVRIDVVRFLDWLRQRIRXU&RPSDQ\LVVXHRIQHZVKDUHV
RUFRQYHUWLEOHLQVWUXPHQWVH[FHSWLQDFDVHZKHUH9DQ*RJKKDVQRWH[HUFLVHGWKHSUHHPSWLYHULJKWV
RIIHUHGDQ\FKDQJHLQWKHFODVVULJKWVSUHIHUHQFHVDQGSULYLOHJHVRIVKDUHKROGHUVLQFOXGLQJFRPPRQ
HTXLW\ SUHIHUHQFH VKDUHV DQG RWKHU FRQYHUWLEOH LQVWUXPHQWV YROXQWDU\ GHOLVWLQJ RI WKH VKDUHV DQ\
PDWHULDOFKDQJHLQWKHQDWXUHRIEXVLQHVVRIRXU&RPSDQ\RUFRPPHQFHPHQWRIDQHZOLQHRIEXVLQHVV
RU HQWHULQJ LQWR DQ\ MRLQW YHQWXUH SDUWQHUVKLS RU FRQVRUWLXP DUUDQJHPHQW SDVVLQJ DQ\ UHVROXWLRQ RU
WDNLQJ DQ\ VWHSV WR KDYH RXU &RPSDQ\ ZRXQG XS OLTXLGDWHG RU WR GLVVROYH RXU &RPSDQ\ LQFOXGLQJ
WDNLQJ VWHSV WR HIIHFW D UHFDSLWDOL]DWLRQ UHFODVVLILFDWLRQ VSOLWRII VSLQRII RU EDQNUXSWF\ RI RXU
&RPSDQ\XQGHUWDNLQJDPHUJHUDPDOJDPDWLRQGHPHUJHUVSLQRIIFRQVROLGDWLRQRIRUDQDFTXLVLWLRQ
RI DQRWKHU FRPSDQ\ WR PRUWJDJH SOHGJH K\SRWKHFDWH JUDQW VHFXULW\ LQWHUHVW LQ VXEMHFW WR DQ\ OLHQ
DQ\EXVLQHVVRUDVVHWVRIRXU&RPSDQ\DSSRLQWPHQWRIWKHLQGHSHQGHQWGLUHFWRUDQGGLUHFWRUDSSRLQWHG
DW WKH VXJJHVWLRQ RI WKH 2WKHU 1HZ ,QYHVWRUV , DQG 2WKHU 1HZ ,QYHVWRUV ± ,, DV GHVFULEHG LQ WKH
$PHQGPHQW$JUHHPHQWDSSURYDORIDQ\HPSOR\HHVWRFNRSWLRQVFKHPHRUHPSOR\HHVWRFNSXUFKDVH
VFKHPHDQ\FKDQJHLQWKHQDPHRIRXU&RPSDQ\DQGDQ\FRPPLWPHQWRUDJUHHPHQWWRGRDQ\RIWKH
IRUHJRLQJ
)XUWKHU LVVXH RI VKDUHV ,Q WKH HYHQW WKDW RXU &RPSDQ\ LVVXHV DQ\ IXUWKHU VKDUHV RU RWKHU ZDUUDQWV
FRQYHUWLEOHLQVWUXPHQWVRUDQ\RSWLRQVRUDQ\DSSUHFLDWLRQULJKWVDQGRWKHUVHFXULWLHVFRQYHUWLEOHLQWR
VHFXULWLHV RU RWKHUZLVH WR DQ\ SHUVRQ ³)UHVK 2IIHULQJ´ WKH IROORZLQJ VKDOO EH DSSOLFDEOH YLVjYLV
9DQ*RJK
L
,Q FDVH RI D SUHIHUHQWLDO LVVXH 2XU &RPSDQ\ ZLOO RIIHU VXFK QXPEHU RI VHFXULWLHV WR 9DQ
*RJK 2WKHU 1HZ ,QYHVWRUV, DQG 2WKHU 1HZ ,QYHVWRUV ± ,, LQ WKH )UHVK 2IIHULQJ ZKLFK LV
HTXDOWRWKHLUVKDUHKROGLQJLQRXU&RPSDQ\SULRUWRVXFK)UHVK2IIHULQJRQWKHVDPHWHUPVDV
WKDWRIWKH)UHVK2IIHULQJ,IDQ\RIWKH2WKHU1HZ,QYHVWRUV,DQGWKH2WKHU1HZ,QYHVWRUV±
,, GHFOLQH WR VXEVFULEH WR WKHLU SRUWLRQ RI WKH VHFXULWLHV VR RIIHUHG WKHQ VXFK GHFOLQHG
VHFXULWLHV VKDOO EH RIIHUHG SURSRUWLRQDWHO\ WR 9DQ *RJK DQG WKH QRQGHFOLQLQJ 2WKHU 1HZ
,QYHVWRUV, DQG WKH QRQGHFOLQLQJ 2WKHU 1HZ ,QYHVWRUV ± ,, LQ SURSRUWLRQ WR WKHLU UHVSHFWLYH
VKDUHKROGLQJSHUFHQWDJHSULRUWRWKH)UHVK2IIHULQJLQRXU&RPSDQ\RQWKHVDPHWHUPVDVWKH
SURSRVHG)UHVK2IIHULQJ
LL
,QFDVHRIDULJKWVLVVXH,IDZKROHRUDSDUWRIWKHULJKWVLVVXHUHPDLQVXQVXEVFULEHGWKHQWKH
XQVXEVFULEHGSRUWLRQRIWKHVHFXULWLHVVKDOOEHSURSRUWLRQDWHO\RIIHUHGWR9DQ*RJKWKH2WKHU
1HZ,QYHVWRUV,DQGWKH 2WKHU1HZ,QYHVWRUV ±,,RQWKH VDPH WHUPVDVWKH SURSRVHGULJKWV
LVVXH3URYLGHGWKDWLIDQ\RIWKH2WKHU1HZ,QYHVWRUV,WKH2WKHU1HZ,QYHVWRUV±,,GHFOLQH
WRVXEVFULEH VXFKVHFXULWLHV RXU&RPSDQ\ VKDOORIIHU VXFK VHFXULWLHVSURSRUWLRQDWHO\WR9DQ
*RJK2WKHU1HZ,QYHVWRU,DQGWKH2WKHU1HZ,QYHVWRU,,RQWKHVDPHWHUPVDVWKHSURSRVHG
ULJKWVLVVXH
,QIRUPDWLRQ 5LJKWV 9DQ *RJK LV HQWLWOHG WR FHUWDLQ LQIRUPDWLRQ ULJKWV DV VHW RXW LQ WKH ,QYHVWPHQW
$JUHHPHQW,,,
1RQ WHUPLQDWLRQ RI DUUDQJHPHQWV ZLWK FRQQHFWHG SHUVRQV 2XU &RPSDQ\ LV UHTXLUHG WR VHHN SULRU
ZULWWHQFRQVHQWRI$VLDEULGJHEHIRUHWHUPLQDWLQJDQ\RILWVPDWHULDOFRQWUDFWVRUDUUDQJHPHQWVZLWKLWV
DIILOLDWHVLQUHODWLRQWRVKDULQJRILQIUDVWUXFWXUHRUIDFLOLWLHV
7HUPDQG7HUPLQDWLRQ7KHULJKWVRI9DQ*RJKLQFRQQHFWLRQZLWKUHVHUYHGPDWWHUVVWDQGWHUPLQDWHG
XSRQWKHVKDUHKROGLQJRI9DQ*RJKFDOFXODWHGDVSHUWKH$PHQGPHQW$JUHHPHQWIDOOLQJEHORZ
7KH ULJKWV RI 9DQ *RJK LQ FRQQHFWLRQ ZLWK IXUWKHU LVVXH RI VKDUHV VWDQG WHUPLQDWHG XSRQ WKH
VKDUHKROGLQJ RI 9DQ *RJK IDOOLQJ EHORZ XQOHVV WKH VDPH LV FDXVHG GXH WR VHFXULWLHV QRW EHLQJ
RIIHUHG WR 9DQ *RJK LQ DFFRUGDQFH ZLWK 9DQ *RJK¶V SUHHPSWLYH ULJKW 9DQ *RJK FXUUHQWO\ KDV QLO
VKDUHKROGLQJLQRXU&RPSDQ\
6KDUHVXEVFULSWLRQDJUHHPHQWGDWHG6HSWHPEHUEHWZHHQL0U57K\DJDUDMDQ0U7
-D\DUDPDQ6&/DQG6KULUDP2ZQHUVKLS7UXVWDFWLQJWKURXJKLWVWUXVWHHV0U57K\DJDUDMDQ
0U$UXQ'XJJDO0U'$3UDVDQQD0U5.DQQDQDQG0U'95DYLFROOHFWLYHO\NQRZQDV
WKH ³)RXQGHUV´ LL 73* ,QGLD ,QYHVWPHQWV , ,QF ³73*´ LLL 65+3/LY 6(+3/ DQG RXU
&RPSDQ\³6XEVFULSWLRQ$JUHHPHQW´
3XUVXDQWWRWKH6XEVFULSWLRQ$JUHHPHQW73*KDGVXEVFULEHGWRHTXLW\VKDUHVRI65+3/DWD
SULFHRI`SHUHTXLW\VKDUHDQGZDUUDQWVFRQYHUWLEOHLQWRHTXLW\VKDUHVRI65+3/DW
DSULFHRI`SHUZDUUDQW3XUVXDQWWRWKH6FKHPHRI$UUDQJHPHQW73*EHLQJDVKDUHKROGHURI
6+53/ ZDVDOORWWHG(TXLW\ 6KDUHVDQG KROGV RIWKHHTXLW\ VKDUH FDSLWDORIRXU
&RPSDQ\DVRQ6HSWHPEHU
6RPHRIWKHPDLQSURYLVLRQVRIWKH6XEVFULSWLRQ$JUHHPHQWDUHVXPPDUL]HGEHORZ
1RQFRPSHWH$VORQJDV73*GLUHFWO\RULQGLUHFWO\KROGVQROHVVWKDQEHQHILFLDOLQWHUHVWLQWKH
SDLGXSVKDUHFDSLWDORIRXU&RPSDQ\QHLWKHUWKH)RXQGHUVQRU DQ\RIWKHLUDIILOLDWHV PD\ ZRUNIRU
DVVRFLDWH ZLWK RU FRQGXFW EXVLQHVV DV D FRPSHWLWRU RI WKH &RPSDQ\ RU DQ\ IXWXUH GLUHFW RU LQGLUHFW
VXEVLGLDULHVRIWKH&RPSDQ\GLUHFWO\RULQGLUHFWO\
73*¶V ULJKW RI ILUVW UHIXVDO %HIRUH WUDQVIHUULQJ DQ\ RI LWV HTXLW\ VKDUHV DQGRU ZDUUDQWV LQ RXU
&RPSDQ\WKH)RXQGHUVKDOO JLYHDQRWLFHRIVXFKLQWHQWLRQDQG FHUWDLQRWKHUGHWDLOV WR73*,I73*
HLWKHUIDLOVWRUHVSRQGWRWKHQRWLFHZLWKLQGD\VRUUHIXVHVWREX\WKHHTXLW\VKDUHVWKH)RXQGHUPD\
WUDQVIHUVXFKHTXLW\VKDUHVDQGRUZDUUDQWVWRDQ\SHUVRQ
7DJ DORQJ ULJKWV ,Q WKH HYHQW RI D SURSRVHG WUDQVIHU RI HTXLW\ VKDUHV DQGRU ZDUUDQWV KHOG LQ RXU
&RPSDQ\E\73*RUWKH)RXQGHUVWRDWKLUGSDUW\WKHQRQWUDQVIHUULQJSDUW\LVHQWLWOHGWRUHTXLUHWKH
WUDQVIHUULQJ SDUW\ WR FDXVH WKH SURSRVHG WUDQVIHUHH WR SXUFKDVH DW WKH VDPH SULFH VXFK QXPEHU RI
HTXLW\VKDUHVDQGRUZDUUDQWVKHOGE\WKHQRQWUDQVIHUULQJSDUW\DVHTXDOWRWKHWUDQVIHUULQJSHUFHQWDJH
RIWKHWRWDOQXPEHURIHTXLW\VKDUHVDQGRUZDUUDQWVKHOGE\WKHQRQWUDQVIHUULQJSDUW\DVRQWKHGDWHRI
WKHSURSRVHGWUDQVIHU
&RPSRVLWLRQRIWKHERDUGRIGLUHFWRUV8QGHUWKHWHUPVRIWKH6XEVFULSWLRQ$JUHHPHQWWKHERDUGRI
RXU&RPSDQ\VKDOOFRPSULVHRIXSWRGLUHFWRUVRXWRIZKLFKLWKUHHGLUHFWRUVVKDOOEHWKHQRPLQHH
RI73*LLWKUHHGLUHFWRUVVKDOOEHWKHQRPLQHHRIWKH)RXQGHUVLLLIRXULQGHSHQGHQWGLUHFWRUVWREH
QRPLQDWHGLQDFFRUGDQFHZLWKRWKHULQYHVWPHQWDJUHHPHQWVHQWHUHGLQWRE\WKH&RPSDQ\73*DQGWKH
)RXQGHUVVKDOOPXWXDOO\DJUHHXSRQDQGLGHQWLI\RQHLQGLYLGXDOZKRVKDOOEHLQGHSHQGHQW GLUHFWRUDQG
ZKRVKDOOEHWKHFKDLUPDQRIWKH%RDUG7KHPDQDJLQJGLUHFWRURIWKH&RPSDQ\VKDOOEHDSSRLQWHGE\
WKH)RXQGHUV
4XRUXP7KHFKDLUPDQRIWKHERDUGVKDOOQRWKDYHDFDVWLQJYRWH7KHTXRUXPRIDQ\PHHWLQJRIWKH
ERDUGZKHUHDQ\PDWWHUZKLFKUHTXLUHVWKHVSHFLILFFRQVHQWRIWKHQRPLQHHVRI73*RUWKH)RXQGHUV
RULVWREHWDNHQXSVKDOOEHLQDFFRUGDQFHZLWKDSSOLFDEOHODZRIZKLFKDWOHDVWRQHGLUHFWRUVKDOOEH
WKHQRPLQHHRI73*RUWKH)RXQGHUVRUERWKDVWKHFDVHPD\EH7KHTXRUXPRIDQ\PHHWLQJRIWKH
ERDUGRIGLUHFWRUVRWKHUWKDQWKRVHDIRUHPHQWLRQHGVKDOOFRPSULVHDWOHDVWRQHGLUHFWRUZKRVKDOOEHD
QRPLQHHRI73*DQGRQHGLUHFWRUZKRVKDOOEHDQRPLQHHRIWKH)RXQGHUV$OOGHFLVLRQVDWDQ\PHHWLQJ
RI WKH ERDUG VKDOO EH LQ DFFRUGDQFH ZLWK WKH YRWH RI D VLPSOH PDMRULW\ VDYH VXFK GHFLVLRQV ZKLFK
UHTXLUHWKHVSHFLILFFRQVHQWRIWKH)RXQGHUVRU73*DVWKHFDVHPD\EH
&RPSRVLWLRQRIFRPPLWWHHV73*DQGWKH)RXQGHUVVKDOOVXEMHFWWRWKHULJKWWRQRPLQDWHDWOHDVWRQH
QRPLQHH EH HQWLWOHG WR QRPLQDWH HTXDO QXPEHU RI QRPLQHHV RQ HDFK FRPPLWWHH RI WKH ERDUG RI
GLUHFWRUV
)XQGDPHQWDO LVVXHV $Q\ DFWLRQ ZLWK UHVSHFW WR FXVWRPDU\ IXQGDPHQWDO LVVXHV DV VHW RXW LQ WKH
6XEVFULSWLRQ $JUHHPHQW VKDOO UHTXLUH WKH VSHFLILF FRQVHQW RI WKH VKDUHKROGHUV E\ ZD\ RI DQ
H[WUDRUGLQDU\ UHVROXWLRQ DQGRU WKH FRQVHQW RI 73* DQG WKH )RXQGHUV¶ QRPLQHH RQ WKH ERDUG RI
GLUHFWRUVRUFRPPLWWHHWKHUHRIDVWKHFDVHPD\EH
,QGHPQLWLHV 2XU &RPSDQ\ DQG WKH )RXQGHUV MRLQWO\ DQG VHYHUDOO\ DJUHH WR LQGHPQLI\ 73* LWV
DIILOLDWHV DQG HPSOR\HHV IRU DQ\ FODLPV DULVLQJ RXW RI DQ\ PDWHULDO EUHDFK RI WKLV 6XEVFULSWLRQ
$JUHHPHQW
'UDJDORQJULJKWV,QDFFRUGDQFHZLWKWKHWHUPVDQGSURFHGXUHVHWRXWLQWKH6XEVFULSWLRQ$JUHHPHQW
73*KDVWKHULJKWWRUHTXLUH WKH )RXQGHUVWRVHOODOORUSDUWRI WKHHTXLW\VKDUHVRU ZDUUDQWVWKDWWKH
)RXQGHUVKROGLQRXU&RPSDQ\
3XWDQGFDOORSWLRQ,QWKHHYHQWRIDPDWHULDOEUHDFKRIWKHSURYLVLRQVRIWKH6XEVFULSWLRQ$JUHHPHQW
WKHQRQGHIDXOWLQJSDUWLHVDUHLQWHUDOLDLQFHUWDLQVLWXDWLRQVHQWLWOHGWRH[HUFLVHSXWDQGFDOORSWLRQV
7KHQRQGHIDXOWLQJSDUW\VKDOOKDYHWKHULJKWWRHLWKHUUHTXLUHWKHGHIDXOWLQJSDUW\MRLQWO\DQGVHYHUDOO\
WRDFTXLUHDQ\RUDOORIWKHHTXLW\VKDUHVDQGZDUUDQWVKHOGE\WKHQRQGHIDXOWLQJSDUW\LQRXU&RPSDQ\
DWDSULFHHTXLYDOHQWWRRIWKHIDLUPDUNHWYDOXHRIVXFKHTXLW\VKDUHVDQGZDUUDQWVRUFDXVHWKH
GHIDXOWLQJSDUW\WRVHOOWRWKHQRQGHIDXOWLQJSDUW\DQ\RUDOORIWKHHTXLW\VKDUHVDQGZDUUDQWVWKHQKHOG
E\WKHGHIDXOWLQJSDUW\DWDSULFHHTXLYDOHQWRIRIWKHIDLUPDUNHWYDOXH
7HUPDQGWHUPLQDWLRQ,QWKHHYHQWRIDPDWHULDOEUHDFKRIWKHUHVSHFWLYHUHSUHVHQWDWLRQVZDUUDQWLHV
DQGFRYHQDQWVE\73*WKH)RXQGHUVRURXU&RPSDQ\WKHQRQGHIDXOWLQJSDUW\VKDOOKDYHWKHULJKWWR
WHUPLQDWHWKH6XEVFULSWLRQ$JUHHPHQWDQGWKHGHIDXOWLQJSDUW\VKDOOEHOLDEOHIRUDOOORVVHVVXIIHUHGDV
DUHVXOWRIVXFKEUHDFK
/LFHQVH $JUHHPHQW GDWHG $SULO EHWZHHQ 6KULUDP 2ZQHUVKLS 7UXVW ³627´ DQG RXU &RPSDQ\
³/LFHQVH$JUHHPHQW´
3XUVXDQW WR WKH /LFHQVH $JUHHPHQW 627 KDV JUDQWHG RXU &RPSDQ\ WKH OLFHQVH WR XVH WKH QRQ H[FOXVLYH
FRS\ULJKWUHODWLQJWRWKHH[LVWLQJDUWLVWLFZRUN³6+5,5$0´ORJR³&RS\ULJKW´DVVLJQHGLQIDYRXURI627E\
6KULUDP &DSLWDO /LPLWHG DQG WR UHSURGXFH WKH VDLG ZRUN LQ FRQQHFWLRQ ZLWK WKH EXVLQHVV DFWLYLWLHV RI RXU
&RPSDQ\LQWKHWHUULWRU\RI,QGLDGXULQJWKHWHUPRIWKH&RS\ULJKW6RPHRIWKHPDLQSURYLVLRQVRIWKH/LFHQVH
$JUHHPHQWDUHDVIROORZV
&RQVLGHUDWLRQ :H SDLG 627 D UR\DOW\ IHH RI DQG RI RXU JURVV WXUQRYHU IRU WKH ILUVW
VHFRQGDQGWKLUG\HDUVRIWKHOLFHQVHDJUHHPHQWUHVSHFWLYHO\5R\DOW\UDWHIRUWKH\HDULVUDWHV
IRUVXEVHTXHQW\HDUVZLOOEHGHFLGHGPXWXDOO\RQRUEHIRUH$SULOVWRIWKHUHVSHFWLYHILQDQFLDO\HDUV 5R\DOW\
ZLOOEHSDLGE\RXU&RPSDQ\WR627ZLWKTXDUWHUO\UDWHVHQGLQJRQ-XQHWK6HSWHPEHUWK'HFHPEHUVW
DQG0DUFKVWZLWKHIIHFWIURPGDWHRIWKH/LFHQVH$JUHHPHQW$ORQJZLWKWKHUR\DOW\RXU&RPSDQ\ZLOODOVR
SD\WR627DPRXQWVE\ZD\RIUHLPEXUVHPHQWRIDFWXDOH[SHQVHVLQFXUUHGE\627LQUHVSHFWRISURWHFWLRQDQG
GHIHQFHRIWKH&RS\ULJKW
7HUP,QWHUPVRIWKH/LFHQVH$JUHHPHQWDQGOHWWHUGDWHG$SULOWKLVDJUHHPHQWLVYDOLGWLOO0DUFK
2850$1$*(0(17
%RDUGRI'LUHFWRUV
3XUVXDQWWRWKH$UWLFOHVRI$VVRFLDWLRQRXU&RPSDQ\LVUHTXLUHGWRKDYHQRWOHVVWKDQWKUHHDQGQRWPRUHWKDQ
'LUHFWRUV&XUUHQWO\RXU&RPSDQ\KDV'LUHFWRUVRQWKH%RDUGRXWRIZKLFKWZRDUHH[HFXWLYH'LUHFWRUV
DQGQLQHDUHQRQH[HFXWLYH'LUHFWRUV)XUWKHURXU%RDUGFRQVLVWVRIVL[LQGHSHQGHQW'LUHFWRUV
7KHIROORZLQJWDEOHVHWVIRUWKGHWDLOVUHJDUGLQJWKH%RDUGDVRQGDWHRIWKLV3URVSHFWXV
1DPH'HVLJQDWLRQ$JH
',1DQG2FFXSDWLRQ
0U$UXQ'XJJDO
&KDLUPDQ1RQ
([HFXWLYH1RQ
,QGHSHQGHQW
1DWLRQDOLW\
'DWHRI
$SSRLQWPHQW
8QLWHG6WDWHVRI 0D\
$PHULFD
2YHUVHDV
&LWL]HQRI,QGLD
$JH
',1
2FFXSDWLRQ&RQVXOWDQW
0U5'XUXYDVDQ
,QGLD
-XQH
0DQDJLQJ'LUHFWRU
$JH
$GGUHVV
2WKHU'LUHFWRUVKLSV
$ UG )ORRU :HVW ,QGLDQFRPSDQLHV
(QG &RORQ\ 1HZ L =XDUL$JUR&KHPLFDOV/LPLWHG
LL ,QIR(GJH,QGLD/LPLWHG
'HOKL
LLL $GDQL 3RUWV DQG 6SHFLDO
(FRQRPLF=RQH/LPLWHG
LY 'LVK79,QGLD/LPLWHG
Y 6KULUDP 7UDQVSRUW )LQDQFH
&RPSDQ\/LPLWHG
YL ,QWHUQDWLRQDO
$VVHW
5HFRQVWUXFWLRQ
&RPSDQ\
3ULYDWH/LPLWHGDQG
YLL 6KULUDP&DSLWDO/LPLWHG
)RUHLJQFRPSDQLHV
L
-XELODQW
(QHUJ\
19
1HWKHUODQGV
LL 6DQODP /LPLWHG 6RXWK $IULFD
DQG
LLL 6DQODP /LIH ,QVXUDQFH /LPLWHG
6RXWK$IULFD
)ODW 1R % ,QGLDQFRPSDQLHV
6WRQH 9DOOH\ &(6/LPLWHG
$SDUWPHQWV 5RDG
1R %DQMDUD +LOOV
+\GHUDEDG
',1
2FFXSDWLRQ6HUYLFH
0U*66XQGDUDUDMDQ ,QGLD
0DQDJLQJ'LUHFWRU
1RYHPEHU
$JH
',1
2FFXSDWLRQ6HUYLFH
0U5DQYLU'HZDQ
1RQ ([HFXWLYH 1RQ
,QGHSHQGHQW'LUHFWRU
$JH
6LQJDSRUH
'HFHPEHU
)ODW 1R 7KH
6XPPLW 1R , VW
$YHQXH
6KDVWUL
1DJDU &KHQQDL ,QGLDQFRPSDQLHV
L
6KULUDP&DSLWDO/LPLWHG
LL
6KULUDP &UHGLW &RPSDQ\
/LPLWHG
LLL 6KULUDP *HQHUDO ,QVXUDQFH
&RPSDQ\/LPLWHG
LY 9LVWDDU )LQDQFLDO 6HUYLFHV
3ULYDWH/LPLWHG
Y
6KULUDP (TXLSPHQW )LQDQFH
&RPSDQ\/LPLWHG
YL 6KULUDP
/LIH
,QVXUDQFH
&RPSDQ\/LPLWHGDQG
YLL 6KULUDP +RXVLQJ )LQDQFH
/LPLWHG
(ZH %RRQ 5RDG )RUHLJQFRPSDQLHV
37 %DQN RI 7DEXQHJDQ
&U\VWDO L
3HQVLXQDQ1DVLRQDO,QGRQHVLD
7RZHU 6LQJDSRUH 73* $VLD 9 $PEHU 3WH
LL
/LPLWHG6LQJDSRUH
LLL 73* 0DUNHWV $PEHU 3WH
/LPLWHG6LQJDSRUH
LY 73* 9, $PEHU 3WH /LPLWHG
1DPH'HVLJQDWLRQ$JH
',1DQG2FFXSDWLRQ
1DWLRQDOLW\
'DWHRI
$SSRLQWPHQW
$GGUHVV
2WKHU'LUHFWRUVKLSV
',1
Y
2FFXSDWLRQ6HUYLFH
6LQJDSRUHDQG
7KDL 5HWDLO &UHGLW
%DQJNRN
%DQN
,QGLD
0U3XQHHW%KDWLD
1RQ ([HFXWLYH 1RQ
,QGHSHQGHQW'LUHFWRU
$JH
'HFHPEHU
%
$UDOLDV
$SDUWPHQWV
'/)
3+9 2OG *ROI
&OXE *XUJDRQ ±
',1
2FFXSDWLRQ6HUYLFH
0U6.ULVKQDPXUWK\ ,QGLD
$SULO
1RQ
([HFXWLYH
,QGHSHQGHQW'LUHFWRU
$JH
& $VKWDODNVKPL
$SDUWPHQWV
$UXQGDOH
%HDFK
5RDG %HVDQW 1DJDU
&KHQQDL
,QGLDQFRPSDQLHV
L
73*&DSLWDO,QGLD3ULYDWH
/LPLWHG
LL
6KULUDP7UDQVSRUW)LQDQFH
&RPSDQ\/LPLWHG
LLL 6KULUDP&DSLWDO/LPLWHG
LY 73*:KROHVDOH3ULYDWH
/LPLWHG
Y
)ODUH(VWDWH3ULYDWH/LPLWHG
DQG
YL 6KULUDP3URSHUWLHV3ULYDWH
/LPLWHG
,QGLDQFRPSDQLHV
6KULUDP(3&/LPLWHG
L
LL
.HUDOD$\XUYHGD/LPLWHGDQG
LLL 7DNH6ROXWLRQV/LPLWHG
',1
2FFXSDWLRQ6HUYLFH
,QGLD
1RYHPEHU
1R $ :RUOG ,QGLDQFRPSDQLHV
63$ 6HFWRU 6KULUDP*HQHUDO,QVXUDQFH&RPSDQ\
/LPLWHG
*XUJDRQ
,QGLD
0U90XUDOL
1RQ
([HFXWLYH
,QGHSHQGHQW'LUHFWRU
$JH
',1
2FFXSDWLRQ &KDUWHUHG
DFFRXQWDQW
'HFHPEHU
5DLQWUHH )ODW 1R$
%ORFN ( 1R
9HQXV &RORQ\ QG
6WUHHW
$OZDUSHW
&KHQQDL
,QGLD
'HFHPEHU
0U9LSHQ.DSXU
1RQ
([HFXWLYH
,QGHSHQGHQW'LUHFWRU
$JH
',1
2FFXSDWLRQ&RQVXOWDQW
0V/DNVKPL3UDQHVK
1RQ
([HFXWLYH
,QGHSHQGHQW'LUHFWRU
$JH
,QGLDQFRPSDQLHV
L
:LW]HQPDQQ ,QGLD 3ULYDWH
/LPLWHG
LL
$QGKUD&KDPEHURI&RPPHUFH
LLL +LQGXVWDQ
&KDPEHU
RI
&RPPHUFH
LY *DUXGD9DD\X6KDNWKL/LPLWHG
+LQGXVWDQ ,QVHFWLFLGHV /LPLWHG
Y
DQG
YL 6KULUDP +RXVLQJ )LQDQFH
/LPLWHG 2OG 1R 1HZ 1LO
1R
5XNPDQL
5RDG .DODNVKHWUD
%HVDQW
&RORQ\
1DJDU &KHQQDL ',1
2FFXSDWLRQ
5HWLUHG
1DPH'HVLJQDWLRQ$JH
',1DQG2FFXSDWLRQ
1DWLRQDOLW\
'DWHRI
$SSRLQWPHQW
$GGUHVV
2WKHU'LUHFWRUVKLSV
,QGLDQ $GPLQLVWUDWLYH
6HUYLFHVRIILFHU
,QGLD
$XJXVW
$UDGKDQD ,QGLDQFRPSDQLHV
L ,QWHUQDWLRQDO$VVHW5HFRQVWUXFWLRQ
$SDUWPHQWV
&RPSDQ\3ULYDWH/LPLWHG
5.3XUDP 6HF
1HZ'HOKL
)RUHLJQFRPSDQLHV
L +.7/LPLWHGDQG
LL +.70DQDJHPHQW/LPLWHG
0U 3UDQDE 3UDNDVK ,QGLD
3DWWDQD\DN
2FWREHU
)ODW 1R $ *RNXODP &RPSOH[
'RGGDNDODVDQGUD WK
.DQDNDSXUD
0LOH
5RDG %DQJDORUH 0U6XQLO9DUPD
1RQ
([HFXWLYH
,QGHSHQGHQW'LUHFWRU
$JH
',1
2FFXSDWLRQ6HUYLFH
1RQ
([HFXWLYH
,QGHSHQGHQW'LUHFWRU
$JH
',1
2FFXSDWLRQ
0DQDJHPHQWFRQVXOWDQW
,QGLDQFRPSDQLHV
,QGLD ,QIROLQH $VVHW 0DQDJHPHQW
&RPSDQ\/LPLWHG
1RQHRIWKHFXUUHQWGLUHFWRUVRIWKH&RPSDQ\DSSHDURQWKHOLVWRIGHIDXOWHUVRIWKH5%,(&*&GHIDXOWOLVW
1R 'LUHFWRU RU PHPEHURI WKH VHQLRU PDQDJHPHQW KDV EHHQ DSSRLQWHG SXUVXDQW WR DQ\ DUUDQJHPHQWV RU
XQGHUVWDQGLQJVZLWKPDMRUVKDUHKROGHUVFXVWRPHUVVXSSOLHUVRURWKHUV6RPHRIRXUVKDUHKROGHUVKDYHDULJKW
WRDSSRLQW'LUHFWRUVSXUVXDQWWRWKHVKDUHVXEVFULSWLRQDJUHHPHQWVHQWHUHGLQWRZLWKWKHP)RUIXUWKHUGHWDLOVRI
VXFKLQYHVWRUULJKWVSOHDVHVHHVHFWLRQWLWOHG³+LVWRU\DQG&HUWDLQ&RUSRUDWH0DWWHUV±0DWHULDO$JUHHPHQWV´RQ
SDJH
%ULHI3URILOHV
7KHIROORZLQJDUHEULHIELRJUDSKLHVRIRXU'LUHFWRUV
0U$UXQ'XJJDODJHG\HDUVLVDQRQH[HFXWLYHQRQLQGHSHQGHQWFKDLUPDQRQRXU%RDUG+HKROGVDGHJUHH
RI%DFKHORURI7HFKQRORJ\LQPHFKDQLFDOHQJLQHHULQJIURPWKH,QGLDQ,QVWLWXWHRI7HFKQRORJ\'HOKLDQGDSRVW
JUDGXDWHGLSORPDLQEXVLQHVVDGPLQLVWUDWLRQIURPWKH,QGLDQ,QVWLWXWHRI0DQDJHPHQW$KPHGDEDG+HKDVEHHQ
RQRXU%RDUGVLQFH0D\
0U5'XUXYDVDQDJHG\HDUVLVDPDQDJLQJ'LUHFWRURQRXU%RDUG+HLVDOVRRQWKHERDUGRIGLUHFWRUVRI
&(6/LPLWHG+HKDVEHHQRQRXU%RDUGVLQFH-XQH
0U*66XQGDUDUDMDQDJHG\HDUVLVDPDQDJLQJ'LUHFWRURQRXU%RDUG+HKROGVDGHJUHHRI%DFKHORURI
(QJLQHHULQJ $JULFXOWXUH IURP WKH 7DPLO 1DGX $JULFXOWXUDO 8QLYHUVLW\ &RLPEDWRUH DQG D SRVW JUDGXDWH
GLSORPDLQPDQDJHPHQW$JULFXOWXUHIURPWKH,QGLDQ,QVWLWXWHRI0DQDJHPHQW$KPHGDEDG +HKDVEHHQRQ
RXU%RDUGDVDGLUHFWRUVLQFH'HFHPEHUDQGKDVEHHQ0DQDJLQJ'LUHFWRUZLWKHIIHFWIURP1RYHPEHU
0U 5DQYLU 'HZDQ DJHG \HDUV LV D QRQ H[HFXWLYH QRQ LQGHSHQGHQW 'LUHFWRU RQ RXU %RDUG +H KROGV D
GHJUHHRI%DFKHORURI&RPPHUFHKRQRXUVFRXUVHIURPWKH8QLYHUVLW\RI'HOKL+HLVDIHOORZRIWKH,QVWLWXWH
RI &KDUWHUHG $FFRXQWDQWV LQ (QJODQG DQG :DOHV DQG D PHPEHU RI WKH ,QVWLWXWH RI &KDUWHUHG $FFRXQWDQWV RI
2QWDULR+HKDVEHHQRQRXU%RDUGVLQFH'HFHPEHU
0U 3XQHHW %KDWLD DJHG \HDUV LV D QRQ H[HFXWLYH QRQ LQGHSHQGHQW 'LUHFWRU RQ RXU %RDUG +H KROGV D
GHJUHHRI%DFKHORURI&RPPHUFHKRQRXUVFRXUVHIURPWKH6KUL5DP&ROOHJHRI&RPPHUFH'HOKLDQGD3RVW
*UDGXDWH 'LSORPD LQ 0DQDJHPHQW IURP WKH ,QGLDQ ,QVWLWXWH RI 0DQDJHPHQW &DOFXWWD +H KDV EHHQ RQ RXU
%RDUGVLQFH'HFHPEHU
0U6.ULVKQDPXUWK\DJHG\HDUVLVDQRQH[HFXWLYHLQGHSHQGHQW'LUHFWRURQRXU%RDUG+HKROGVDGHJUHH
RI %DFKHORU RI $UWV IURP WKH 8QLYHUVLW\ RI 0DGUDV D &RPPHUFLDO (GXFDWLRQ 'LSORPD LQ VSHFLDOLVHG EDQNLQJ
IURPWKH,QGLDQ0HUFKDQWV¶&KDPEHUD'LSORPDLQ,QGXVWULDO5HODWLRQVDQG3HUVRQQHO 0DQDJHPHQW IURPWKH
%KDUDWL\D9LG\D%KDYDQDGHJUHHRI%DFKHORURI*HQHUDO/DZIURPWKH8QLYHUVLW\RI0\VRUHDQGDGHJUHHRI
0DVWHU RI /DERXU 6WXGLHV IURP WKH 0DGXUDL .DPDUDM 8QLYHUVLW\ +H LV DQ DVVRFLDWH RI WKH ,QGLDQ ,QVWLWXWH RI
%DQNHUV+HKDVSUHYLRXVO\KHOGWKHSRVWRI%DQNLQJ2PEXGVPDQ&KHQQDLIRUDSSUR[LPDWHO\ILIWHHQPRQWKV
+HKDVEHHQRQRXU%RDUGVLQFH$SULO
0U9LSHQ.DSXUDJHG\HDUVLVDQRQH[HFXWLYHLQGHSHQGHQW'LUHFWRURQRXU%RDUG+HKROGVDGHJUHHRI
%DFKHORU RI &RPPHUFH IURP 8QLYHUVLW\ RI 0DGUDV +H LV DQ DVVRFLDWH RI WKH ,QVWLWXWH RI %DQNHUV +H KDV
SUHYLRXVO\EHHQDVVRFLDWHGZLWK*ULQGOD\V%DQNDQG%DQNRI$PHULFD1HZ'HOKL+HKDVEHHQRQRXU%RDUG
VLQFH-XQH
0U 9 0XUDOL DJHG \HDUV LV D QRQ H[HFXWLYH LQGHSHQGHQW 'LUHFWRU RQ RXU %RDUG +H KROGV D GHJUHH RI
%DFKHORU RI &RPPHUFH IURP WKH 9LYHNDQDQGD &ROOHJH &KHQQDL +H LV D IHOORZ RI WKH ,QVWLWXWH RI &KDUWHUHG
$FFRXQWDQWVRI,QGLDDQGDQDVVRFLDWHRIWKH,QVWLWXWHRI&RVWDQG:RUNV$FFRXQWDQWVRI,QGLD+HKDVEHHQRQ
RXU%RDUGVLQFH'HFHPEHU
0V/DNVKPL3UDQHVKDJHG\HDUVLVDQRQH[HFXWLYHLQGHSHQGHQW'LUHFWRURQRXU%RDUG6KHKROGVDGHJUHH
RI %DFKHORU RI 6FLHQFH IURP WKH 8QLYHUVLW\ RI 0DGUDV DQG RI 0DVWHU RI 6FLHQFH 0DWKHPDWLFV IURP WKH
8QLYHUVLW\RI0DGUDV6KHKDVSUHYLRXVO\KHOGWKHSRVWRIFKLHIVHFUHWDU\WRWKHJRYHUQPHQWRI7DPLO1DGX6KH
KDVEHHQRQRXU%RDUGVLQFH'HFHPEHU
0U6XQLO9DUPDDJHG\HDUVLVDQRQH[HFXWLYHLQGHSHQGHQW'LUHFWRURQRXU%RDUG+HKROGVDGHJUHHRI
%DFKHORURI$UWVIURPWKH3DQMDE8QLYHUVLW\+HLVDIHOORZRIWKH,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWVRI,QGLD
DQG DQ DVVRFLDWH RI WKH ,QVWLWXWH RI &RVW DQG :RUNV $FFRXQWDQWV RI ,QGLD +H KDV EHHQ RQ RXU %RDUG VLQFH
$XJXVW
0U 3UDQDE 3UDNDVK 3DWWDQD\DN DJHG \HDUV LV D QRQ H[HFXWLYH LQGHSHQGHQW 'LUHFWRU RQ RXU %RDUG +H
KROGV D GHJUHH RI %DFKHORU RI $UWV IURP WKH 8WNDO 8QLYHUVLW\ DQG D 0DVWHU RI $UWV GHJUHH IURP 8WNDO
8QLYHUVLW\+HKDVSUHYLRXVO\KHOGWKHSRVWVRIGHSXW\PDQDJLQJGLUHFWRUDQGFKLHIFUHGLWRIILFHUDW6WDWH%DQN
RI,QGLD+HKDVEHHQRQRXU%RDUGVLQFH2FWREHU
5HODWLRQVKLSZLWKRWKHU'LUHFWRUV
1RQHRIRXU'LUHFWRUVDUHUHODWHGWRHDFKRWKHU
%RUURZLQJSRZHUVRIWKH%RDUG
3XUVXDQWWRUHVROXWLRQSDVVHGE\WKHVKDUHKROGHUVRIRXU&RPSDQ\DWWKHLU$*0KHOGRQ-XO\DQGLQ
DFFRUGDQFHZLWKSURYLVLRQVRI6HFWLRQGRIWKH&RPSDQLHV$FWWKH%RDUGKDVEHHQDXWKRULVHGWR
ERUURZVXPVRIPRQH\DVWKH\PD\GHHPQHFHVVDU\IRUWKHSXUSRVHRIWKHEXVLQHVVRIRXU&RPSDQ\XSRQVXFK
WHUPVDQGFRQGLWLRQVDQGZLWKRUZLWKRXWVHFXULW\DVWKH%RDUGPD\WKLQNILWSURYLGHGWKDWPRQH\RUPRQLHVWR
EHERUURZHGWRJHWKHUZLWKWKHPRQLHVDOUHDG\ERUURZHGE\RXU&RPSDQ\DSDUWIURPWHPSRUDU\ORDQVREWDLQHG
DQGRU WR EH REWDLQHG IURP WKH &RPSDQ\¶V EDQNHUV LQ WKH RUGLQDU\ FRXUVH RI EXVLQHVV VKDOO QRW H[FHHG`
ODNKV 7KH DJJUHJDWH YDOXH RI WKH 1&'V RIIHUHG XQGHU WKLV 3URVSHFWXV WRJHWKHU ZLWK WKH H[LVWLQJ
ERUURZLQJVRIRXU&RPSDQ\LVZLWKLQWKHDSSURYHGERUURZLQJOLPLWVRI `ODNKV
7KH ,VVXH LV EHLQJ PDGH SXUVXDQW WR WKH UHVROXWLRQ SDVVHG E\ WKH %RDUG RQ -XO\ DQG WKH UHVROXWLRQ
DSSURYHGE\WKH6HFXULWLHV0DQDJHPHQW&RPPLWWHHDWLWVPHHWLQJKHOGRQ0DUFK
,QWHUHVWVRIRXU'LUHFWRUV
$OORIRXU'LUHFWRUVPD\EHGHHPHGWREHLQWHUHVWHGWRWKHH[WHQWRIUHLPEXUVHPHQWRIH[SHQVHVDQGVLWWLQJIHHV
LIDQ\SD\DEOHWRWKHPXQGHURXU$UWLFOHVIRUDWWHQGLQJPHHWLQJRI%RDUGDQGFRPPLWWHHVDQGWRWKHH[WHQWRI
UHPXQHUDWLRQLIDQ\SDLGWRWKHPIRUVHUYLFHVUHQGHUHGDVDQRIILFHURUHPSOR\HHRIRXU&RPSDQ\
2XU'LUHFWRUVH[FOXGLQJLQGHSHQGHQWGLUHFWRUVPD\DOVREHUHJDUGHGDVLQWHUHVWHGLQWKH(TXLW\6KDUHVLIDQ\
KHOGE\WKHFRPSDQLHVILUPVDQGWUXVWVLQZKLFKWKH\DUHLQWHUHVWHGDVGLUHFWRUVPHPEHUVSDUWQHUVRUWUXVWHHV
DQGSURPRWHUV
([FHSWDVVWDWHGLQWKHVHFWLRQWLWOHG³)LQDQFLDO6WDWHPHQWV´RQSDJHDQGWRWKHH[WHQWRIFRPSHQVDWLRQDQG
FRPPLVVLRQLIDQ\RXU'LUHFWRUVGRQRWKDYHDQ\RWKHULQWHUHVWLQRXUEXVLQHVV
2XU 'LUHFWRUV KDYH QR LQWHUHVW LQ DQ\ SURSHUW\ DFTXLUHG RU SURSRVHG WR EH DFTXLUHG E\ RXU &RPSDQ\ LQ WKH
SUHFHGLQJWZR\HDUVRIILOLQJWKLV3URVSHFWXVZLWKWKH'HVLJQDWHG6WRFN([FKDQJHQRUGRWKH\KDYHDQ\LQWHUHVW
LQDQ\WUDQVDFWLRQUHJDUGLQJWKHDFTXLVLWLRQRIODQGFRQVWUXFWLRQRIEXLOGLQJVDQGVXSSO\RIPDFKLQHU\HWFZLWK
UHVSHFWWRRXU&RPSDQ\
1RQHRIRXU'LUHFWRUVKDYHWDNHQDQ\ORDQIURPRXU&RPSDQ\
4XDOLILFDWLRQVKDUHVKHOGE\'LUHFWRUV
$V SHU WKH $UWLFOHV RI $VVRFLDWLRQ WKH 'LUHFWRUV DUH QRW UHTXLUHG WR KROG DQ\ TXDOLILFDWLRQ VKDUHV LQ RXU
&RPSDQ\
6KDUHKROGLQJRI'LUHFWRUV
$VRQGDWHRIWKLV3URVSHFWXVQRQHRIRXU'LUHFWRUVKROGDQ\(TXLW\6KDUHV
'HEHQWXUH6XERUGLQDWHG'HEWKROGLQJRI'LUHFWRUV
$VRQGDWHRIWKLV3URVSHFWXVQRQHRIRXU'LUHFWRUVKROGDQ\GHEHQWXUHVRUVXERUGLQDWHGGHEWLQRXU&RPSDQ\
5HPXQHUDWLRQRIWKH'LUHFWRUV
$ ([HFXWLYH'LUHFWRUV
0U * 6 6XQGDUDUDMDQ ZDV DSSRLQWHG DV WKH PDQDJLQJ 'LUHFWRU RI RXU &RPSDQ\ IRU D SHULRG RI ILYH
\HDUV ZLWK HIIHFW IURP 1RYHPEHU SXUVXDQW WR D UHVROXWLRQ RI WKH %RDUG RI 'LUHFWRUV RI RXU
&RPSDQ\SDVVHGRQ2FWREHUDQGWKHDSSURYDORIWKHVKDUHKROGHUVRIRXU&RPSDQ\DWWKH (*0
GDWHG0D\)XUWKHUSXUVXDQWWRWKHDIRUHPHQWLRQHGERDUGUHVROXWLRQDQGDVDJUHHGXSRQE\0U
*66XQGDUDUDMDQKHVKDOOQRWGUDZDQ\UHPXQHUDWLRQIURPRXU&RPSDQ\IRUWKHVHUYLFHVSURYLGHGE\KLP
DVWKHPDQDJLQJ'LUHFWRURIRXU&RPSDQ\
0U 5 'XUXYDVDQ ZDV DSSRLQWHG DV WKH PDQDJLQJ 'LUHFWRU RI RXU &RPSDQ\ IRU D SHULRG RI ILYH \HDUV
ZLWKHIIHFWIURP-XQHSXUVXDQWWRDUHVROXWLRQRIWKH%RDUGRI'LUHFWRUVRIRXU&RPSDQ\SDVVHGE\
FLUFXODWLRQRQ-XQHDQGWKHDSSURYDORIWKHVKDUHKROGHUVRIRXU&RPSDQ\SXUVXDQWWRDUHVROXWLRQ
SDVVHGDWWKHLU$*0KHOGRQ-XO\7KHUHPXQHUDWLRQSDLGWRKLPIRUWKHODVWILVFDOLV`ODNKV
7KHUHPXQHUDWLRQSD\DEOHWR0U5'XUXYDVDQE\ZD\RIVDODU\DQGRWKHUSHUTXLVLWHVDVDXWKRULVHGE\WKH
VKDUHKROGHUV RI RXU &RPSDQ\ SXUVXDQW WR UHVROXWLRQ SDVVHG DW WKHLU $*0 KHOG RQ -XO\ LV DV
IROORZV
D 5HPXQHUDWLRQ ` SHU PRQWK ZLWK DQQXDO LQFUHPHQW RI QRW OHVV WKDQ SHU DQQXP ZLWK
HIIHFWIURP$SULOHYHU\\HDU
E 3HUTXLVLWHV
L
+RXVLQJ5HQWIUHHDFFRPPRGDWLRQRZQHGOHDVHGUHQWHGE\RXU&RPSDQ\RUKRXVLQJDOORZDQFH
LQOLHXWKHUHRIDVSHUWKHUXOHVRIRXU&RPSDQ\
LL &OXEIHHV 6XEVFULSWLRQOLPLWHGWRDPD[LPXPRIWZRFOXEV1ROLIH PHPEHUVKLSRUDGPLVVLRQ
IHHVVKDOOEHSDLGE\RXU&RPSDQ\$OOH[SHQVHVDWFOXEIRURIILFLDOSXUSRVHVKDOOEHUHLPEXUVHG
RUSDLGWRWKHFOXE
LLL
LY
([SHQGLWXUHRQHQWHUWDLQPHQWIRURIILFLDOSXUSRVHVKDOOEHRQWKH&RPSDQ\¶VDFFRXQW
&RQWULEXWLRQ WR SURYLGHQW IXQG VXSHUDQQXDWLRQ IXQG RU DQQXLW\ IXQG $V SHU WKH UXOHV RI RXU
&RPSDQ\
Y *UDWXLW\$VSHUWKHUXOHVRIWKH&RPSDQ\
YL (QFDVKPHQWRIOHDYH$VSHUWKHUXOHVRIWKH&RPSDQ\
YLL /HDYH$VSHUWKH&RPSDQ\¶VUXOHV
YLLL &RPSDQ\¶VFDUZLWKGULYHUIRUXVHRQ&RPSDQ\¶VEXVLQHVVDQGPDLQWHQDQFHH[SHQVHVWKHUHRQ
L[ 7HOHSKRQH 7HOHSKRQH FKDUJHV DW UHVLGHQFH VKDOO EH ERUQH E\ WKH &RPSDQ\ 0RELOH WHOHSKRQH
ELOOVVKDOOEHSDLGE\WKH&RPSDQ\3HUVRQDOORQJGLVWDQFHFDOOVVKDOOEHFKDUJHGWRWKHPDQDJLQJ
'LUHFWRU
[ (PSOR\HHV 6WRFN 2SWLRQ $V PD\ EH GHFLGHG E\ WKH 5HPXQHUDWLRQ &RPPLWWHH %RDUG RI
'LUHFWRUVIURPWLPHWRWLPHDFFRUGLQJWRWKH(PSOR\HHV6WRFN2SWLRQ6FKHPHRIWKH&RPSDQ\
F 2WKHU7HUPV
L
LL
LLL
7KH 0DQDJLQJ 'LUHFWRU VKDOO QRW EH SDLG DQ\ VLWWLQJ IHHV IRU DWWHQGLQJ JHQHUDO PHHWLQJV DQG
PHHWLQJVRIWKH%RDUGRU&RPPLWWHHWKHUHRI
,QWKHHYHQWRIDEVHQFHRULQDGHTXDF\RISURILWVLQDQ\ILQDQFLDO\HDUWKHPDQDJLQJ'LUHFWRUZLOO
EH SDLG WKH DERYH UHPXQHUDWLRQ DV PLQLPXP UHPXQHUDWLRQ VXEMHFW WR WKH RYHUDOO FHLOLQJV ODLG
GRZQ LQ VHFWLRQ ,, RI SDUW ,,RI VFKHGXOH ;,,, RI WKH &RPSDQLHV $FW RU DQ\ PRGLILFDWLRQ
WKHUHRI
7KH %RDUG PD\ UHYLVH WKH H[LVWLQJ RU DOORZ DQ\ RWKHU IDFLOLWLHVSHUTXLVLWHV IURP WLPH WR WLPH
ZLWKLQRYHUDOOFHLOLQJ
7KHPDQDJLQJ'LUHFWRUVKDOOQRWUHWLUHE\URWDWLRQ
LY
% 1RQ([HFXWLYH'LUHFWRUV
7KH IROORZLQJ WDEOH VHWV IRUWK WKH GHWDLOV RI WKH VLWWLQJ IHHV DQG FRPPLVVLRQ SDLG WR RXU QRQH[HFXWLYH
'LUHFWRUVGXULQJWKH)LVFDOHQGHG0DUFK
,Q`
1DPH
6LWWLQJIHHIRUERDUG
PHHWLQJ
1,/
1,/
1,/
1,/
0U$UXQ'XJJDO
0U5DQYLU'HZDQ
0U3XQHHW%KDWLD
0U6.ULVKQDPXUWK\
0U9LSHQ.DSXU
0U90XUDOL
0UV/DNVKPL3UDQHVK
0U6XQLO9DUPD
0U3UDQDE3UDNDVK3DWWDQD\DN
0U*66XQGDUDUDMDQ
6LWWLQJIHHIRU
FRPPLWWHHPHHWLQJ
1,/
1,/
1,/
1,/
1,/
7RWDO
1,/
1,/
1,/
1,/
$SSRLQWHGDVPDQDJLQJ'LUHFWRUZLWKHIIHFWIURP1RYHPEHUSULRUWRZKLFKKHZDVDQRQH[HFXWLYHQRQLQGHSHQGHQW'LUHFWRU
RIRXU&RPSDQ\
&KDQJHVLQ%RDUGGXULQJWKHODVWWKUHH\HDUV
6U
1R
1DPH
0U5DPDPRRUWK\
5DMDJRSDODQ.XWWDODP
0U0XNXQG*RYLQG
'LZDQ
0U90XUDOL
0U5DPDPXUWK\
.DQQDQ
0U5'XUXYDVDQ
0U69HQNDWDNULVKQDQ
0U3UDQDE3UDNDVK
3DWWDQD\DN
',1
'HVLJQDWLRQRI
'LUHFWRU
'DWHRI
$SSRLQWPHQW
1RQH[HFXWLYHLQGHSHQGHQW
1RQH[HFXWLYHLQGHSHQGHQW
1RQH[HFXWLYHLQGHSHQGHQW
PDQDJLQJGLUHFWRU
0DQDJLQJ'LUHFWRU
1RQH[HFXWLYHQRQ
LQGHSHQGHQW
1RQH[HFXWLYHLQGHSHQGHQW
'DWHRI&HVVDWLRQ
1RYHPEHU
1RYHPEHU
'HFHPEHU -XQH
-XQH
$XJXVW
2FWREHU
6U
1R
1DPH
',1
0U9LSHQ.DSXU
0U*66XQGDUDUDMDQ 'HVLJQDWLRQRI
'LUHFWRU
1RQH[HFXWLYHLQGHSHQGHQW
0DQDJLQJ'LUHFWRU
'DWHRI
$SSRLQWPHQW
'DWHRI&HVVDWLRQ
2FWREHU
1RYHPEHU 1RYHPEHU &RUSRUDWH*RYHUQDQFH
:H DUH LQFRPSOLDQFH ZLWKWKH UHTXLUHPHQWVRIFRUSRUDWH JRYHUQDQFHDV PDQGDWHGLQ FODXVH RIWKH (TXLW\
/LVWLQJ$JUHHPHQWHQWHUHGLQWRE\RXU&RPSDQ\ZLWKWKH6WRFN([FKDQJHVSDUWLFXODUO\WKRVHLQUHODWLRQWRWKH
FRPSRVLWLRQ RI WKH %RDUG RI 'LUHFWRUV FRQVWLWXWLRQ RI FRPPLWWHHV VXFK DV DXGLW FRPPLWWHH UHPXQHUDWLRQ
FRPPLWWHH DQG LQYHVWRUVKDUHKROGHUV JULHYDQFH FRPPLWWHH 7KH %RDUG KDV ODLG GRZQ D FRGH RI FRQGXFW IRU WKH
%RDUGRI'LUHFWRUVDQGVHQLRUPDQDJHPHQWRIRXU&RPSDQ\DQGWKHVDPHLVSRVWHGRQWKHZHEVLWHRIRXU&RPSDQ\
&XUUHQWO\RXU%RDUGKDV'LUHFWRUV,QFRPSOLDQFHZLWKFODXVHRIWKH(TXLW\/LVWLQJ$JUHHPHQWRIWKH
'LUHFWRUVRQRXU%RDUGZHKDYHWZRH[HFXWLYH'LUHFWRUV DQGQLQHQRQH[HFXWLYH'LUHFWRUV)XUWKHURIWKH
'LUHFWRUVZHKDYHVL[LQGHSHQGHQW'LUHFWRUVDQGILYHQRQLQGHSHQGHQW'LUHFWRUV
&RPPLWWHHVRIWKH%RDUGRI'LUHFWRUV
2XU%RDUGFRQVWLWXWHVVXEFRPPLWWHHVLQLWVRUGLQDU\FRXUVHRIEXVLQHVV:LWKUHJDUGWRFRUSRUDWHJRYHUQDQFH
UHTXLUHPHQWVWKHIROORZLQJFRPPLWWHHVKDYHEHHQFRQVWLWXWHG
$ $XGLWDQG5LVN0DQDJHPHQW&RPPLWWHH
% 1RPLQDWLRQDQG5HPXQHUDWLRQ&RPPLWWHH
& 6WDNHKROGHUV5HODWLRQVKLS&RPPLWWHH
' $VVHW/LDELOLW\0DQDJHPHQW&RPPLWWHH
7KHGHWDLOVRIWKHVHFRPPLWWHHVDUHDVIROORZV
$ $XGLWDQG5LVN0DQDJHPHQW&RPPLWWHH
7KHDXGLWFRPPLWWHHZDVFRQVWLWXWHGE\DPHHWLQJRIRXU%RDUGKHOGRQ-DQXDU\DQGUHFRQVWLWXWHG
DV WKH $XGLW DQG 5LVN 0DQDJHPHQW &RPPLWWHH E\ D PHHWLQJ RI RXU %RDUG GDWHG -DQXDU\ 7KH
PHPEHUVRIWKH$XGLW&RPPLWWHHDUH
6U1R
1DPHRIWKH0HPEHU
'HVLJQDWLRQ
1DWXUHRI'LUHFWRUVKLS
0U6XQLO9DUPD
&KDLUPDQ
1RQH[HFXWLYHLQGHSHQGHQW
0U6.ULVKQDPXUWK\
0HPEHU
1RQH[HFXWLYHLQGHSHQGHQW
0U5DQYLU'HZDQ
0HPEHU
1RQH[HFXWLYHQRQLQGHSHQGHQW
0V/DNVKPL3UDQHVK
0HPEHU
1RQH[HFXWLYHLQGHSHQGHQW
0U90XUDOL
0HPEHU
1RQH[HFXWLYHLQGHSHQGHQW
7KHWHUPVRIUHIHUHQFHRIWKH$XGLWDQG5LVN0DQDJHPHQW&RPPLWWHHLQWHUDOLDLQFOXGH
L
5HFRPPHQG WKH DSSRLQWPHQW UHDSSRLQWPHQW WHUPV RI DSSRLQWPHQWUHDSSRLQWPHQW DQG
UHPXQHUDWLRQRIDXGLWRUV
LL 5HYLHZDQGPRQLWRUDXGLWRU¶VLQGHSHQGHQFHDQGSHUIRUPDQFHDQGHIIHFWLYHQHVVRIDXGLWSURFHVV
LLL ([DPLQHWKHILQDQFLDOVWDWHPHQWVILQDQFLDOUHSRUWLQJSURFHVVDQGWKHDXGLWRU¶VUHSRUW
LY (YDOXDWLRQRILQWHUQDOILQDQFLDOFRQWUROVDQGULVNPDQDJHPHQWV\VWHPV
Y 0RQLWRUWKHHQGXVHRIIXQGVUDLVHGWKURXJKSXEOLFRIIHUVDQGUHODWHGPDWWHUV
YL 5HYLHZLQWHUQDODXGLWIXQFWLRQLQWHUQDODXGLWUHSRUWIROORZXSRQILQGLQJVDQGWKHSHUIRUPDQFHRI
WKHLQWHUQDODXGLWRU
YLL 5HYLHZILQGLQJVRIDQ\LQWHUQDOLQYHVWLJDWLRQUHSRUWVRIWKH LQWHUQDODXGLWRUVRQ VXVSHFWHGIUDXGRU
LUUHJXODULW\RUDIDLOXUHRILQWHUQDOFRQWUROV\VWHPVRIDPDWHULDOQDWXUHDQGUHSRUWLWWRWKH%RDUG
YLLL /RRN LQWR WKH GHIDXOWV LQ WKH SD\PHQW WR WKH GHSRVLWRUV GHEHQWXUH KROGHUV VKDUHKROGHUV DQG
FUHGLWRUV
L[
[
[L
[LL
[LLL
[LY
5HYLHZWKHIXQFWLRQLQJRIWKHZKLVWOHEORZHUPHFKDQLVP
$SSURYDORUDQ\VXEVHTXHQWPRGLILFDWLRQRIDQ\WUDQVDFWLRQZLWKUHODWHGSDUWLHV
$SSURYHDSSRLQWPHQWRIWKHFKLHIILQDQFLDORIILFHURIWKH&RPSDQ\
6FUXWLQ\RILQWHUFRUSRUDWHORDQVDQGLQYHVWPHQWV
7RYDOXDWHXQGHUWDNLQJRIDVVHWVZKHUHYHUQHFHVVDU\
7R DQDO\VH HFRQRPLF FRQGLWLRQV LQGXVWU\ZLVH SHUIRUPDQFH JXLGHOLQHV LVVXHG E\ UHJXODWRU\
DXWKRULWLHV FRPSHWLWRU¶V SROLFLHV DQG DOHUWLQJ WKH PDQDJHPHQW WR WKH SRVVLELOLW\ RI DQ\ DGYHUVH
VLWXDWLRQHPHUJLQJ
[Y 7R UHYLHZ $/0 SRVLWLRQV FDSLWDO DGHTXDF\ SRVLWLRQV UHVRXUFHV UDLVHG FUHGLW UDWLQJV DQG 13$
PDQDJHPHQW
[YL 7RDQDO\VHWUHQGRIFRVWRIIXQGVH[SHQVHVDQGUHYLHZDFWLRQWDNHQWRPLWLJDWHULVNVWKHUHRI
[YLL 7R DQDO\VH SHUIRUPDQFH RI DVVHWV DVVLJQHGVHFXULWLVHG UHODWHG SDUW\ WUDQVDFWLRQV VLQJOH SDUW\
H[SRVXUHDQGFRQWLQJHQWOLDELOLWLHV
[YLLL7RUHYLHZDFWLRQWDNHQZLWKUHJDUGWRDOOVWDWXWRU\OHJDOUHTXLUHPHQWV
[L[ 7RUHYLHZWKHFUHGLWSROLF\IRUHDFKSURGXFWDQGWRDVVHVVGRYHWDLOLQJRIEXVLQHVVGRQHLQDFFRUGDQFH
ZLWKRYHUDOOFUHGLWSROLF\
[[ 7RUHYLHZDOOPDMRURSHUDWLRQDOFRQWURODFWLRQDEOHSRLQWVWRKDQGOHIDLOXUHVDQGRWKHUH[LJHQFLHV
[[L &DUU\RXWDQ\RWKHUIXQFWLRQDVGHFLGHGE\WKH%RDUGIURPWLPHWRWLPH
% 1RPLQDWLRQDQG5HPXQHUDWLRQ&RPPLWWHH
7KHUHPXQHUDWLRQDQGFRPSHQVDWLRQFRPPLWWHHZDVFRQVWLWXWHGE\DPHHWLQJRIRXU%RDUGKHOGRQ-DQXDU\
DQGUHFRQVWLWXWHGE\DPHHWLQJKHOGRQ1RYHPEHU,WZDVVXEVHTXHQWO\UHFRQVWLWXWHGDV
WKH 1RPLQDWLRQ DQG 5HPXQHUDWLRQ &RPPLWWHH E\ D PHHWLQJ RI RXU %RDUG GDWHG -DQXDU\ 7KH
PHPEHUVRIWKH1RPLQDWLRQDQG5HPXQHUDWLRQ&RPPLWWHHDUH
6U1R
1DPHRIWKH0HPEHU
'HVLJQDWLRQ
1DWXUHRI'LUHFWRUVKLS
0U9LSHQ.DSXU
&KDLUPDQ
1RQH[HFXWLYHLQGHSHQGHQW
0U6.ULVKQDPXUWK\
0HPEHU
1RQH[HFXWLYHLQGHSHQGHQW
0U90XUDOL
0HPEHU
1RQH[HFXWLYHLQGHSHQGHQW
7KHWHUPVRIUHIHUHQFHRIWKH5HPXQHUDWLRQDQG&RPSHQVDWLRQ&RPPLWWHHLQWHUDOLDLQFOXGH
L
,GHQWLI\SHUVRQVZKRTXDOLI\WREHFRPH'LUHFWRUVDQGUHFRPPHQGWKHLUDSSRLQWPHQWWRWKH%RDUGDV
DQGZKHQYDFDQFLHVDULVH
LL 6KRXOGVXFKDQHHGDULVHWRUHFRPPHQGUHPRYDORID'LUHFWRUIURPWKH%RDUG
LLL 7RFDUU\RXWHYDOXDWLRQRISHUIRUPDQFHRIHYHU\'LUHFWRURQDQDQQXDOEDVLV
LY 7RLGHQWLI\SHUVRQVZKRPD\EHDSSRLQWHGDVPHPEHUVRIVHQLRUPDQDJHPHQW
Y )RUPXODWHSROLFLHVIRUTXDOLILFDWLRQDWWULEXWHVDQGLQGHSHQGHQFHRI'LUHFWRUV
YL 7RGHYHORSJXLGHOLQHVDQGEURDGUHPXQHUDWLRQSROLF\RIWKH&RPSDQ\
YLL 7RJXLGHSROLFLHVDQGSUDFWLFHVLQWKHWDOHQWPDQDJHPHQWRIWKH&RPSDQ\
YLLL 7R UHYLHZ DQG DSSURYH HPSOR\PHQW DJUHHPHQWV VHYHUDQFH DUUDQJHPHQWV FKDQJH LQ FRQWURO
DJUHHPHQWV
L[ 7R HVWDEOLVK JXLGHOLQHV DQG WR JUDQW WKH VWRFN RSWLRQV WR HPSOR\HHV 'LUHFWRUV RIILFHUV RI WKH
&RPSDQ\DQGRWKHULQFHQWLYHSODQVIRUHPSOR\HHVDQG'LUHFWRUV
[ 7RDGPLQLVWHUWKH&RPSDQ\¶VVWRFNLQFHQWLYHSODQVDQGRWKHUVLPLODULQFHQWLYHSODQVDQGLQWHUSUHWDQG
DGRSWUXOHVIRUWKHRSHUDWLRQWKHUHRI
[L 7RIRUPVXEFRPPLWWHHVDQGWDNHPDWWHUVDVPD\EHDVVLJQHGE\WKH%RDUGIURPWLPHWRWLPH
& 6WDNHKROGHUV5HODWLRQVKLS&RPPLWWHH
7KHVKDUHKROGHUV¶DQGLQYHVWRUV¶JULHYDQFHFRPPLWWHH ZDVFRQVWLWXWHGE\DPHHWLQJRI RXU%RDUGKHOGRQ
-DQXDU\DQGVXEVHTXHQWO\UHFRQVWLWXWHGDVWKH6WDNHKROGHUV5HODWLRQVKLS&RPPLWWHHE\DPHHWLQJ
RIRXU%RDUGGDWHG-DQXDU\7KHPHPEHUVRIWKH6WDNHKROGHUV5HODWLRQVKLS&RPPLWWHHDUH
6U1R
1DPHRIWKH0HPEHU
'HVLJQDWLRQ
1DWXUHRI'LUHFWRUVKLS
0U6.ULVKQDPXUWK\
&KDLUPDQ
1RQH[HFXWLYHLQGHSHQGHQW
0U5'XUXYDVDQ
0HPEHU
0DQDJLQJ'LUHFWRU
0U*66XQGDUDUDMDQ
0HPEHU
0DQDJLQJ'LUHFWRU
7KHWHUPVRIUHIHUHQFHRIWKH6WDNHKROGHUV5HODWLRQVKLS&RPPLWWHHLQWHUDOLDLQFOXGH
L
5HGUHVVDORIVKDUHKROGHUV
JULHYDQFHV
LL 7RUHYLHZWKHVHFXULW\KROGLQJSDWWHUQ
LLL 7RIDFLOLWDWHEHWWHULQYHVWRUFXVWRPHUVHUYLFHVDQGUHODWLRQV
LY 7UDQVIHURIXQFODLPHGGLYLGHQGGHSRVLWVGHEHQWXUHVVXERUGLQDWHGGHEWWRWKH,QYHVWRU(GXFDWLRQDQG
3URWHFWLRQ)XQG
Y /LVWLQJRIVHFXULWLHVRQVWRFNH[FKDQJHVLQFOXGLQJJOREDOGHSRVLWRU\UHFHLSWV
YL $SSRLQWPHQWRIVHFUHWDULDODXGLWRUVDQGIL[LQJWKHLUUHPXQHUDWLRQ
YLL 7RDGGUHVVPDWWHUVUHODWLQJWRGHSRVLWRULHVUHJLVWUDUDQGWUDQVIHUDJHQWV
YLLL 7RPRQLWRUWKH&RGHRI&RQGXFWIRU,QVLGHU7UDGLQJSXUVXDQWWR6(%,3URKLELWLRQRI,QVLGHU7UDGLQJ
5HJXODWLRQVDVDPHQGHG
L[ $Q\RWKHUVXEMHFWDVPD\EHDVVLJQHGE\WKH%RDUGIURPWLPHWRWLPH
' $VVHW/LDELOLW\0DQDJHPHQW&RPPLWWHH
7KH$VVHW/LDELOLW\0DQDJHPHQW&RPPLWWHHZDVFRQVWLWXWHGE\DPHHWLQJRIRXU%RDUGKHOGRQ2FWREHU
7KHPHPEHUVRIWKH$VVHW/LDELOLW\0DQDJHPHQW&RPPLWWHHDUH
6U1R
1DPHRIWKH0HPEHU
'HVLJQDWLRQ
1DWXUHRI'LUHFWRUVKLS
0U3UDQDE3DWWDQD\DN
&KDLUPDQ
1RQ([HFXWLYH,QGHSHQGHQW
'LUHFWRU
0U5'XUXYDVDQ
0HPEHU
0DQDJLQJ'LUHFWRU
0U5&KDQGUDVHNKDU
0HPEHU
0V6XEKDVUL6ULUDP
0HPEHU
7KHWHUPVRIUHIHUHQFHRIWKH$VVHW/LDELOLW\0DQDJHPHQW&RPPLWWHHLQWHUDOLDLQFOXGH
L
LL
LLL
LY
Y
%DODQFHVKHHWSODQQLQJIURPULVNUHWXUQSHUVSHFWLYH
6WUDWHJLFPDQDJHPHQWRILQWHUHVWDQGOLTXLGLW\ULVN
7RDGGUHVVEXVLQHVVULVNLQDVWUXFWXUHGPDQQHU
$GRSWLRQRIDVVHWOLDELOLW\PDQDJHPHQWSUDFWLFHV
3URYLGLQJDFRPSUHKHQVLYHDQGG\QDPLFIUDPHZRUNIRUPHDVXULQJPRQLWRULQJDQGPDQDJLQJOLTXLGLW\
DQGLQWHUHVWUDWHULVNVRIPDMRURSHUDWRUVLQWKHILQDQFLDOV\VWHP
YL $VVHVVPHQWRIYDULRXVW\SHVRIULVNVDQGDOWHULQJWKHDVVHWOLDELOLW\SRUWIROLRLQDG\QDPLFZD\LQRUGHU
WRPDQDJHULVNV
YLL $Q\RWKHUVXEMHFWDVPD\EHVSHFLILHGE\5%,IURPWLPHWRWLPH
2UJDQL]DWLRQDO&KDUW
2XU&RPSDQ\¶VPDQDJHPHQWRUJDQL]DWLRQDOVWUXFWXUHLVVHWIRUWKEHORZ
3D\PHQWRU%HQHILWWR2IILFHUVRIRXU&RPSDQ\
([FHSW HQWLWOHPHQW WR VWRFN RSWLRQV XQGHU WKH (623 (623 DQG (623 DQG SD\PHQWV LQ
DFFRUGDQFH ZLWK WKH WHUPV RI DSSRLQWPHQW RI RXU HPSOR\HHV ZH KDYH QRW SDLG RU JUDQWHG DQ\ DPRXQWV RU
EHQHILWVWRRXUHPSOR\HHVLQWKHWZR\HDUVSUHFHGLQJWKHGDWHRIWKLV3URVSHFWXV2XUHPSOR\HHVDUHQRWHQWLWOHG
WRDQ\VKDUHLQWKHSURILWVRIRXU&RPSDQ\
&KDQJHLQDXGLWRUVRIRXU&RPSDQ\
7KHUHKDYHEHHQQRFKDQJHVWRWKHDXGLWRUVRIRXU&RPSDQ\LQWKHODVWWKUHH\HDUV
285352027(5
2XU3URPRWHULV6KULUDP&DSLWDO/LPLWHG
%ULHIEDFNJURXQGRIRXU3URPRWHU
2XU 3URPRWHU ZDV RULJLQDOO\ LQFRUSRUDWHG DV D SULYDWH OLPLWHG FRPSDQ\ XQGHU WKH &RPSDQLHV $FW DV
6KULUDP&KLWV,QYHVWPHQWV3ULYDWH/LPLWHGDQGUHFHLYHGDFHUWLILFDWHRILQFRUSRUDWLRQIURPWKH5R&RQ$SULO
7KHUHDIWHU ZLWK HIIHFW IURP -DQXDU\ RXU 3URPRWHU ZDV FRQYHUWHG LQ WR D SXEOLF OLPLWHG
FRPSDQ\ DQG WKH QDPH RI RXU 3URPRWHU ZDV FKDQJHG WR 6KULUDP &KLWV ,QYHVWPHQWV /LPLWHG DQG D IUHVK
FHUWLILFDWHRILQFRUSRUDWLRQZDVLVVXHGE\5R&FRQVHTXHQWXSRQFKDQJHRILWVQDPHRQ1RYHPEHU
6XEVHTXHQWO\RXU3URPRWHU ZDVUHFRQYHUWHGWRDSULYDWH OLPLWHGFRPSDQ\ ZLWKHIIHFW IURPRQ-XQH
DQGWKHQDPHRIRXU3URPRWHUZDVFKDQJHGWR6KULUDP&KLWV,QYHVWPHQWV3ULYDWH/LPLWHGDQGFRQVHTXHQWO\
DQHQGRUVHPHQWZDVUHLQVWLWXWLQJWKHZRUG³3ULYDWH´WRWKHQDPHRIRXU3URPRWHUE\WKH5R&6XEVHTXHQWO\WKH
QDPH RI RXU 3URPRWHU ZDV FKDQJHG WR 6KULUDP )LQDQFLDO 6HUYLFHV +ROGLQJV 3ULYDWH /LPLWHG DQG D IUHVK
FHUWLILFDWH RI LQFRUSRUDWLRQ FRQVHTXHQW WR FKDQJH RI QDPH ZDV LVVXHG E\ WKH 5R& RQ 'HFHPEHU 7KHUHDIWHURXU3URPRWHUZDVIXUWKHUFRQYHUWHGWRDSXEOLFOLPLWHGFRPSDQ\DQGWKHQDPHRIRXU3URPRWHUZDV
FKDQJHGWR6KULUDP)LQDQFLDO6HUYLFHV+ROGLQJV/LPLWHGDQGDIUHVKFHUWLILFDWHRILQFRUSRUDWLRQFRQVHTXHQWWR
WKH FKDQJH RI QDPH ZDV LVVXHGE\ WKH 5R& RQ)HEUXDU\7KHUHDIWHUWKH QDPHRI RXU3URPRWHU ZDV
FKDQJHGWRLWVFXUUHQWQDPHDQGDIUHVKFHUWLILFDWHRILQFRUSRUDWLRQFRQVHTXHQWWRFKDQJHRIQDPHZDVLVVXHGE\
WKH5R&RQ0DUFK
7KHUHJLVWHUHGRIILFHRIRXU3URPRWHULVORFDWHGDW6KULUDP+RXVH1R%XUNLW5RDG71DJDU&KHQQDL±
2XU3URPRWHULVDV\VWHPLFDOO\LPSRUWDQFHFRUHLQYHVWPHQWFRPSDQ\UHJLVWHUHGZLWKWKH5%,XQGHUVHFWLRQ
,$RIWKH5%,$FW
6KDUHKROGLQJRIRXU3URPRWHULQRXU&RPSDQ\
3URYLGHGEHORZLVWKHVKDUHKROGLQJRIRXU3URPRWHULQRXU&RPSDQ\DVRQ'HFHPEHU
6QR
1DPHRIWKH
VKDUHKROGHU
6KULUDP
/LPLWHG
7RWDOQXPEHU
1XPEHURI
7RWDO
1XPEHURI
RI(TXLW\
(TXLW\6KDUHVLQ VKDUHKROGLQJDV (TXLW\6KDUHV
6KDUHV
GHPDWHULDOLVHG
DRIWRWDO
SOHGJHG
IRUP
QXPEHURI
(TXLW\6KDUHV
&DSLWDO 1,/
RI(TXLW\
6KDUHVSOHGJHG
ZLWKUHVSHFWWR
(TXLW\6KDUHV
RZQHG
1,/
,QWHUHVWRIRXU3URPRWHU
2XU3URPRWHUKDVQRLQWHUHVWLQDQ\SURSHUW\DFTXLUHGE\RXU&RPSDQ\LQWKHODVWWZR\HDUVIURPWKHGDWHRI
WKLV3URVSHFWXVRULQDQ\SURSHUW\SURSRVHGWREHDFTXLUHGE\RXU&RPSDQ\
2WKHUWKDQWKHSD\PHQWRIGLYLGHQGRQWKH (TXLW\6KDUHVKHOGE\RXU3URPRWHULQRXU&RPSDQ\DQGDVVWDWHG
XQGHUWKHVHFWLRQWLWOHG³)LQDQFLDO6WDWHPHQWV´RQSDJHRXU&RPSDQ\KDVQRWSDLGRUJUDQWHGDQ\DPRXQWV
RUEHQHILWVLQWKHWZR\HDUVSUHFHGLQJWKHGDWHRIWKLV3URVSHFWXV
([FHSW DV VWDWHG XQGHU WKH VHFWLRQ WLWOHG ³)LQDQFLDO 6WDWHPHQWV´ SDJH DQG WR WKH H[WHQW RI LWV (TXLW\
6KDUHKROGLQJLQRXU&RPSDQ\RXU3URPRWHUGRHVQRWKDYHDQ\RWKHULQWHUHVWLQRXU&RPSDQ\DQGLWVEXVLQHVV
672&.0$5.(7'$7$)252856(&85,7,(6
(TXLW\6KDUHV
2XU(TXLW\6KDUHVDUHOLVWHGRQWKH%6(16(DQG06(+RZHYHURXU(TXLW\6KDUHVKDYHQRWEHHQWUDGHGRQ
WKH06(VLQFH-XO\
3URYLGHGEHORZDUHWKH KLJKORZDQGDYHUDJH PDUNHWSULFHVRIWKH(TXLW\6KDUHVRIRXU&RPSDQ\GXULQJWKH
SUHFHGLQJWKUHH\HDUV
<HDU
'DWHRI
+LJK
-DQ
'HF
$SU
6RXUFHZZZEVHLQGLDFRP
+LJK``
%6(
9ROXPHRQ
'DWHRI
GDWHRI+LJK
ORZ
1RRIVKDUHV
'HF
-DQ
$XJ
/RZ`
`
9ROXPHRQ
'DWHRIORZ
1RRI
VKDUHV
$YHUDJHIRU
WKH\HDU``
9ROXPHRQ
'DWHRIORZ
1RRI
VKDUHV
$YHUDJHIRU
WKH\HDU`
<HDU
'DWHRI
+LJK
$SU
'HF
$SU
+LJK``
16(
9ROXPHRQ
'DWHRI
GDWHRI+LJK
ORZ
1RRI
VKDUHV
'HF
-DQ
$XJ
/RZ`
`
6RXUFHZZZQVHLQGLDFRP
1RWHV
+LJKORZDQGDYHUDJHSULFHVDUHRIWKHGDLO\FORVLQJSULFHV
,QFDVHRIWZRGD\VZLWKWKHVDPHFORVLQJSULFHWKHGDWHZLWKKLJKHUYROXPHKDVEHHQFRQVLGHUHG
3URYLGHGEHORZDUHWKHPRQWKO\KLJKDQGORZSULFHVDQGWUDGLQJYROXPHVRIRXU(TXLW\6KDUHVRQWKH%6(DQG
WKH16(IRUWKHVL[PRQWKVSUHFHGLQJWKHGDWHRIILOLQJRIWKLV3URVSHFWXV
0RQWK
'DWHRI
+LJK
6HS
2FW
1RY
'HF
-DQ
)HE
6HS
2FW
1RY
'HF
-DQ
)HE
+LJK``
%6(
9ROXPHRQ
'DWHRIORZ
GDWHRI+LJK
1RRI
VKDUHV
6HS
2FW
1RY
'HF
-DQ
)HE
/RZ`
`
9ROXPHRQ
'DWHRIORZ
1RRI
VKDUHV
$YHUDJHIRU
WKH\HDU`
9ROXPHRQ
'DWHRIORZ
1RRI
VKDUHV
$YHUDJHIRU
WKH\HDU`
6RXUFHZZZEVHLQGLDFRP
0RQWK
'DWHRI
+LJK
6HS
2FW
1RY
'HF
-DQ
)HE
6HS
2FW
1RY
'HF
-DQ
)HE
+LJK``
16(
9ROXPHRQ
'DWHRIORZ
GDWHRI+LJK
1RRI
VKDUHV
6HS
2FW
1RY
'HF
-DQ
)HE
6RXUFHZZZQVHLQGLDFRP
/RZ`
`
1RWHV
+LJKORZDQGDYHUDJHSULFHVDUHRIWKHGDLO\FORVLQJSULFHV
,QFDVHRIWZRGD\VZLWKWKHVDPHFORVLQJSULFHWKHGDWHZLWKKLJKHUYROXPHKDVEHHQFRQVLGHUHG
/LVWHGQRQFRQYHUWLEOHGHEHQWXUHV
3URYLGHG EHORZ DUH WKH KLJK ORZ DQG DYHUDJH PDUNHW SULFHV RI WKH QRQFRQYHUWLEOH GHEHQWXUHV RI RXU
&RPSDQ\EHDULQJ,6,1 1R ,1($RQWKH%6(DQGWKH 16( GXULQJWKHSUHFHGLQJWKUHH \HDUV
DQGIRUWKHVL[PRQWKVSUHFHGLQJWKHGDWHRIILOLQJRIWKLV3URVSHFWXV
A
<HDU
0RQWK
'DWHRI
+LJK
A
6HS
2FW
1RY
'HF
-DQ
)HE
'HF
1,/
)HE
1,/
1,/
1,/
1,/
1,/
1,/
+LJK``
1,/
1,/
1,/
1,/
1,/
1,/
1,/
%6(
9ROXPHRQ
'DWHRIORZ
GDWHRI+LJK
1RRI
GHEHQWXUHV
'HF
1,/
1,/
$XJ
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
/RZ`
`
1,/
1,/
1,/
1,/
1,/
1,/
1,/
9ROXPHRQ
'DWHRIORZ
1RRI
GHEHQWXUHV
1,/
1,/
1,/
1,/
1,/
1,/
1,/
$YHUDJHIRU
WKH\HDU`
`
9ROXPHRQ
'DWHRIORZ
1RRI
GHEHQWXUHV
1,/
1,/
1,/
1,/
1,/
$YHUDJHIRU
WKH\HDU`
1,/
1,/
1,/
1,/
1,/
1,/
1,/
&RPPHQFHGWUDGLQJIURP6HSWHPEHU
6RXUFHZZZEVHLQGLDFRP
<HDU
0RQWK
'DWHRI
+LJK
A
6HS
2FW
1RY
'HF
-DQ
)HE
1,/
1,/
)HE
1,/
1,/
1,/
'HF
-DQ
)HE
+LJK`
`
1,/
1,/
1,/
1,/
1,/
16(
9ROXPHRQ
'DWHRIORZ
GDWHRI+LJK
1RRI
GHEHQWXUHV
1,/
1,/
1,/
1,/
0DU
1,/
1,/
1,/
1,/
1,/
1,/
'HF
-DQ
)HE
/RZ`
`
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
A
&RPPHQFHGWUDGLQJIURP6HSWHPEHU
6RXUFHZZZQVHLQGLDFRP
3URYLGHG EHORZ DUH WKH KLJK ORZ DQG DYHUDJH PDUNHW SULFHV RI WKH QRQFRQYHUWLEOH GHEHQWXUHV RI RXU
&RPSDQ\EHDULQJ,6,1 1R ,1($RQWKH%6(DQGWKH 16(GXULQJWKHSUHFHGLQJWKUHH \HDUV
DQGIRUWKHVL[PRQWKVSUHFHGLQJWKHGDWHRIILOLQJRIWKLV3URVSHFWXV
<HDU
0RQWK
'DWHRI
+LJK
A
6HS
2FW
1RY
'HF
-DQ
)HE
'HF
'HF
)HE
6HS
2FW
1RY
'HF
-DQ
)HE
+LJK`
`
%6(
9ROXPHRQ
'DWHRIORZ
GDWHRI+LJK
1RRI
GHEHQWXUHV
2FW
0DU
0DU
6HS
2FW
1RY
'HF
-DQ
)HE
/RZ`
`
9ROXPHRQ
'DWHRIORZ
1RRI
GHEHQWXUHV
$YHUDJHIRU
WKH\HDU`
A
&RPPHQFHGWUDGLQJIURP6HSWHPEHU
6RXUFHZZZEVHLQGLDFRP
<HDU
0RQWK
'DWHRI
+LJK
A
6HS
2FW
1RY
'HF
-DQ
)HE
'HF
'HF
)HE
6HS
2FW
1RY
'HF
-DQ
)HE
+LJK`
`
16(
9ROXPHRQ
'DWHRIORZ
GDWHRI+LJK
1RRI
GHEHQWXUHV
2FW
0DU
0DU
6HS
2FW
1RY
'HF
-DQ
)HE
/RZ`
`
9ROXPHRQ
'DWHRIORZ
1RRI
GHEHQWXUHV
$YHUDJHIRU
WKH\HDU`
`
A
&RPPHQFHGWUDGLQJIURP6HSWHPEHU
6RXUFHZZZQVHLQGLDFRP
3URYLGHG EHORZ DUH WKH KLJK ORZ DQG DYHUDJH PDUNHW SULFHV RI WKH QRQFRQYHUWLEOH GHEHQWXUHV RI RXU
&RPSDQ\EHDULQJ,6,1 1R ,1($RQWKH%6(DQGWKH 16(GXULQJWKHSUHFHGLQJWKUHH \HDUV
DQGIRUWKHVL[PRQWKVSUHFHGLQJWKHGDWHRIILOLQJRIWKLV3URVSHFWXV
A
<HDU
0RQWK
'DWHRI
+LJK
A
6HS
2FW
1RY
'HF
-DQ
)HE
1RY
'HF
0DU
1,/
2FW
1RY
1,/
-DQ
)HE
+LJK`
`
1,/
1,/
%6(
9ROXPHRQ
'DWHRI
GDWHRI+LJK
ORZ
1RRI
GHEHQWXUHV
2FW
$SU
0DU
1,/
1,/
2FW
1RY
1,/
1,/
-DQ
)HE
/RZ`
`
1,/
1,/
9ROXPHRQ
'DWHRIORZ
1RRI
GHEHQWXUHV
1,/
1,/
$YHUDJHIRU
WKH\HDU`
9ROXPHRQ
'DWHRIORZ
1RRI
GHEHQWXUHV
$YHUDJHIRU
WKH\HDU`
1,/
1,/
&RPPHQFHGWUDGLQJIURP6HSWHPEHU
6RXUFHZZZEVHLQGLDFRP
A
<HDU
0RQWK
'DWHRI
+LJK
A
6HS
2FW
1RY
'HF
-DQ
)HE
'HF
1RY
)HE
6HS
2FW
1RY
'HF
-DQ
)HE
+LJK`
`
16(
9ROXPHRQ
'DWHRIORZ
GDWHRI+LJK
1RRI
GHEHQWXUHV
2FW
$SU
0DU
6HS
2FW
1RY
'HF
-DQ
)HE
/RZ`
`
&RPPHQFHGWUDGLQJIURP6HSWHPEHU
6RXUFHZZZQVHLQGLDFRP
3URYLGHG EHORZ DUH WKH KLJK ORZ DQG DYHUDJH PDUNHW SULFHV RI WKH QRQFRQYHUWLEOH GHEHQWXUHV RI RXU
&RPSDQ\EHDULQJ,6,1 1R ,1($RQWKH%6(DQGWKH 16(GXULQJWKHSUHFHGLQJWKUHH \HDUV
DQGIRUWKHVL[PRQWKVSUHFHGLQJWKHGDWHRIILOLQJRIWKLV3URVSHFWXV
A
<HDU
0RQWK
'DWHRI
+LJK
+LJK`
`
A
6HS
2FW
1RY
'HF
-DQ
)HE
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
%6(
9ROXPHRQ
'DWHRIORZ
GDWHRI+LJK
1RRI
GHEHQWXUHV
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
/RZ`
`
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
9ROXPHRQ
'DWHRIORZ
1RRI
GHEHQWXUHV
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
$YHUDJHIRU
WKH\HDU`
`
9ROXPHRQ
'DWHRIORZ
1RRI
GHEHQWXUHV
1,/
1,/
1,/
1,/
1,/
1,/
1,/
$YHUDJHIRU
WKH\HDU`
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
&RPPHQFHGWUDGLQJIURP6HSWHPEHU
6RXUFHZZZEVHLQGLDFRP
A
<HDU
0RQWK
'DWHRI
+LJK
6HS
2FW
1RY
'HF
-DQ
)HE
6HS
2FW
1,/
1,/
1,/
1,/
1,/
1,/
1,/
+LJK`
`
1,/
1,/
1,/
1,/
1,/
1,/
1,/
16(
9ROXPHRQ
'DWHRIORZ
GDWHRI+LJK
1RRI
GHEHQWXUHV
6HS
2FW
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
/RZ`
`
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
1,/
&RPPHQFHGWUDGLQJIURP6HSWHPEHU
6RXUFHZZZQVHLQGLDFRP
3URYLGHG EHORZ DUH WKH KLJK ORZ DQG DYHUDJH PDUNHW SULFHV RI WKH QRQFRQYHUWLEOH GHEHQWXUHV RI RXU
&RPSDQ\EHDULQJ,6,1 1R ,1($RQWKH%6(DQGWKH 16(GXULQJWKHSUHFHGLQJWKUHH \HDUV
DQGIRUWKHVL[PRQWKVSUHFHGLQJWKHGDWHRIILOLQJRIWKLV3URVSHFWXV
<HDU
0RQWK
'DWHRI
+LJK
A
6HS
2FW
1RY
'HF
-DQ
)HE
6HS
'HF
0DU
6HS
2FW
1RY
'HF
-DQ
)HE
+LJK`
`
%6(
9ROXPHRQ
'DWHRIORZ
GDWHRI+LJK
1RRI
GHEHQWXUHV
6HS
0DU
0DU
6HS
2FW
1RY
'HF
-DQ
)HE
/RZ`
`
9ROXPHRQ
'DWHRIORZ
1RRI
GHEHQWXUHV
$YHUDJHIRU
WKH\HDU`
9ROXPHRQ
'DWHRIORZ
1RRI
GHEHQWXUHV
$YHUDJHIRU
WKH\HDU`
A
&RPPHQFHGWUDGLQJIURP6HSWHPEHU
6RXUFHZZZEVHLQGLDFRP
<HDU
0RQWK
'DWHRI
+LJK
A
6HS
2FW
1RY
'HF
-DQ
6HS
2FW
+LJK`
`
16(
9ROXPHRQ
'DWHRIORZ
GDWHRI+LJK
1RRI
GHEHQWXUHV
2FW
0D\
0DU
6HS
2FW
/RZ`
`
A
<HDU
0RQWK
'DWHRI
+LJK
1RY
'HF
-DQ
)HE
1RY
'HF
-DQ
)HE
+LJK`
`
16(
9ROXPHRQ
'DWHRIORZ
GDWHRI+LJK
1RRI
GHEHQWXUHV
1RY
'HF
-DQ
)HE
/RZ`
`
9ROXPHRQ
'DWHRIORZ
1RRI
GHEHQWXUHV
$YHUDJHIRU
WKH\HDU`
`
&RPPHQFHGWUDGLQJIURP6HSWHPEHU
6RXUFHZZZQVHLQGLDFRP
3URYLGHG EHORZ DUH WKH KLJK ORZ DQG DYHUDJH PDUNHW SULFHV RI WKH QRQFRQYHUWLEOH GHEHQWXUHV RI RXU
&RPSDQ\EHDULQJ,6,1 1R ,1($RQWKH%6(DQGWKH 16(GXULQJWKHSUHFHGLQJWKUHH \HDUV
DQGIRUWKHVL[PRQWKVSUHFHGLQJWKHGDWHRIILOLQJRIWKLV3URVSHFWXV
A
<HDU
0RQWK
'DWHRI
+LJK
A
6HS
2FW
1RY
'HF
-DQ
)HE
1,/
1RY
0DU
1,/
1,/
1,/
'HF
1,/
)HE
+LJK`
`
1,/
%6(
9ROXPHRQ
'DWHRIORZ
GDWHRI+LJK
1RRI
GHEHQWXUHV
1,/
1,/
$SU
$SU
1,/
1,/
1,/
1,/
1,/
1,/
'HF
1,/
1,/
)HE
/RZ`
`
1,/
9ROXPHRQ
'DWHRIORZ
1RRI
GHEHQWXUHV
1,/
1,/
1,/
1,/
1,/
$YHUDJHIRU
WKH\HDU`
9ROXPHRQ
'DWHRIORZ
1RRI
GHEHQWXUHV
$YHUDJHIRU
WKH\HDU`
1,/
1,/
1,/
1,/
1,/
&RPPHQFHGWUDGLQJIURP6HSWHPEHU
6RXUFHZZZEVHLQGLDFRP
<HDU
0RQWK
'DWHRI
+LJK
A
6HS
2FW
1RY
'HF
-DQ
)HE
'HF
2FW
0DU
6HS
2FW
1RY
'HF
-DQ
)HE
+LJK`
`
16(
9ROXPHRQ
'DWHRIORZ
GDWHRI+LJK
1RRI
GHEHQWXUHV
'HF
$SU
$SU
6HS
2FW
1RY
'HF
-DQ
)HE
/RZ`
`
A
&RPPHQFHGWUDGLQJIURP6HSWHPEHU
6RXUFHZZZQVHLQGLDFRP
3URYLGHG EHORZ DUH WKH KLJK ORZ DQG DYHUDJH PDUNHW SULFHV RI WKH QRQFRQYHUWLEOH GHEHQWXUHV RI RXU
&RPSDQ\EHDULQJ,6,1 1R ,1($RQWKH%6(DQGWKH 16(GXULQJWKHSUHFHGLQJWKUHH \HDUV
DQGIRUWKHVL[PRQWKVSUHFHGLQJWKHGDWHRIILOLQJRIWKLV3URVSHFWXV
<HDU
0RQWK
'DWHRI
+LJK
A
6HS
2FW
1RY
1RY
-DQ
6HS
2FW
1RY
%6(
9ROXPHRQ
'DWHRIORZ
GDWHRI+LJK
1RRI
GHEHQWXUHV
1RY
$SU
6HS
2FW
1RY
+LJK`
`
/RZ`
`
9ROXPHRQ
'DWHRIORZ
1RRI
GHEHQWXUHV
$YHUDJHIRU
WKH\HDU`
<HDU
0RQWK
'DWHRI
+LJK
'HF
-DQ
)HE
'HF
-DQ
)HE
A
+LJK`
`
%6(
9ROXPHRQ
'DWHRIORZ
GDWHRI+LJK
1RRI
GHEHQWXUHV
'HF
-DQ
)HE
/RZ`
`
9ROXPHRQ
'DWHRIORZ
1RRI
GHEHQWXUHV
$YHUDJHIRU
WKH\HDU`
`
9ROXPHRQ
'DWHRIORZ
1RRI
GHEHQWXUHV
$YHUDJHIRU
WKH\HDU`
&RPPHQFHGWUDGLQJIURP2FWREHU
6RXUFHZZZEVHLQGLDFRP
A
<HDU
0RQWK
'DWHRI
+LJK
A
6HS
2FW
1RY
'HF
-DQ
)HE
1RY
'HF
6HS
2FW
1RY
'HF
-DQ
)HE
+LJK`
`
16(
9ROXPHRQ
'DWHRI
GDWHRI+LJK
ORZ
1RRI
GHEHQWXUHV
1RY
0DU
6HS
2FW
1RY
'HF
-DQ
)HE
/RZ`
`
&RPPHQFHGWUDGLQJIURP2FWREHU
6RXUFHZZZQVHLQGLDFRP
3URYLGHG EHORZ DUH WKH KLJK ORZ DQG DYHUDJH PDUNHW SULFHV RI WKH QRQFRQYHUWLEOH GHEHQWXUHV RI RXU
&RPSDQ\EHDULQJ,6,1 1R ,1($RQWKH%6(DQGWKH 16(GXULQJWKHSUHFHGLQJWKUHH \HDUV
DQGIRUWKHVL[PRQWKVSUHFHGLQJWKHGDWHRIILOLQJRIWKLV3URVSHFWXV
<HDU
0RQWK
'DWHRI
+LJK
A
6HS
2FW
1RY
'HF
-DQ
)HE
'HF
'HF
6HS
2FW
1RY
'HF
-DQ
)HE
+LJK`
`
%6(
9ROXPHRQ
'DWHRIORZ
GDWHRI+LJK
1RRI
GHEHQWXUHV
2FW
0DU
6HS
2FW
1RY
'HF
-DQ
)HE
/RZ`
`
9ROXPHRQ
'DWHRIORZ
1RRI
GHEHQWXUHV
$YHUDJHIRU
WKH\HDU`
9ROXPHRQ
'DWHRIORZ
1RRI
GHEHQWXUHV
$YHUDJHIRU
WKH\HDU`
A
&RPPHQFHGWUDGLQJIURP2FWREHU
6RXUFHZZZEVHLQGLDFRP
<HDU
0RQWK
'DWHRI
+LJK
A
6HS
2FW
1RY
'HF
-DQ
)HE
'HF
$XJ
6HS
2FW
1RY
'HF
-DQ
)HE
+LJK`
`
16(
9ROXPHRQ
'DWHRIORZ
GDWHRI+LJK
1RRI
GHEHQWXUHV
'HF
0DU
6HS
2FW
1RY
'HF
-DQ
)HE
A
&RPPHQFHGWUDGLQJIURP2FWREHU
6RXUFHZZZQVHLQGLDFRP
/RZ`
`
3URYLGHG EHORZ DUH WKH KLJK ORZ DQG DYHUDJH PDUNHW SULFHV RI WKH QRQFRQYHUWLEOH GHEHQWXUHV RI RXU
&RPSDQ\EHDULQJ,6,1 1R ,1($RQWKH%6(DQGWKH 16( GXULQJWKHSUHFHGLQJWKUHH \HDUV
DQGIRUWKHVL[PRQWKVSUHFHGLQJWKHGDWHRIILOLQJRIWKLV3URVSHFWXV
A
<HDU
0RQWK
'DWHRI
+LJK
A
6HS
2FW
1RY
'HF
-DQ
)HE
'HF
$SU
6HS
2FW
1RY
'HF
-DQ
)HE
+LJK`
`
%6(
9ROXPHRQ
'DWHRIORZ
GDWHRI+LJK
1RRI
GHEHQWXUHV
2FW
0DU
6HS
2FW
1RY
'HF
-DQ
)HE
/RZ`
`
9ROXPHRQ
'DWHRIORZ
1RRI
GHEHQWXUHV
$YHUDJHIRU
WKH\HDU`
`
9ROXPHRQ
'DWHRIORZ
1RRI
GHEHQWXUHV
$YHUDJHIRU
WKH\HDU`
&RPPHQFHGWUDGLQJIURP2FWREHU
6RXUFHZZZEVHLQGLDFRP
A
<HDU
0RQWK
'DWHRI
+LJK
A
6HS
2FW
1RY
'HF
-DQ
)HE
'HF
2FW
6HS
2FW
1RY
'HF
-DQ
)HE
+LJK`
`
16(
9ROXPHRQ
'DWHRIORZ
GDWHRI+LJK
1RRI
GHEHQWXUHV
'HF
0DU
6HS
2FW
1RY
'HF
-DQ
)HE
/RZ`
`
&RPPHQFHGWUDGLQJIURP2FWREHU
6RXUFHZZZQVHLQGLDFRP
3URYLGHG EHORZ DUH WKH KLJK ORZ DQG DYHUDJH PDUNHW SULFHV RI WKH QRQFRQYHUWLEOH GHEHQWXUHV RI RXU
&RPSDQ\EHDULQJ,6,1 1R ,1($RQWKH%6(DQGWKH 16(GXULQJWKHSUHFHGLQJWKUHH \HDUV
DQGIRUWKHVL[PRQWKVSUHFHGLQJWKHGDWHRIILOLQJRIWKLV3URVSHFWXV
<HDU
0RQWK
'DWHRI
+LJK
A
6HS
2FW
1RY
'HF
-DQ
)HE
2FW
1RY
6HS
2FW
1RY
'HF
-DQ
)HE
+LJK`
`
%6(
9ROXPHRQ
'DWHRIORZ
GDWHRI+LJK
1RRI
GHEHQWXUHV
1RY
-DQ
6HS
2FW
1RY
'HF
-DQ
)HE
/RZ`
`
9ROXPHRQ
'DWHRIORZ
1RRI
GHEHQWXUHV
$YHUDJHIRU
WKH\HDU`
9ROXPHRQ
'DWHRIORZ
1RRI
GHEHQWXUHV
$YHUDJHIRU
WKH\HDU`
A
&RPPHQFHGWUDGLQJIURP2FWREHU
6RXUFHZZZEVHLQGLDFRP
<HDU
0RQWK
'DWHRI
+LJK
A
6HS
2FW
'HF
6HS
+LJK`
`
16(
9ROXPHRQ
'DWHRIORZ
GDWHRI+LJK
1RRI
GHEHQWXUHV
2FW
-DQ
6HS
/RZ`
`
<HDU
0RQWK
'DWHRI
+LJK
2FW
1RY
'HF
-DQ
)HE
2FW
1RY
'HF
-DQ
)HE
+LJK`
`
16(
9ROXPHRQ
'DWHRIORZ
GDWHRI+LJK
1RRI
GHEHQWXUHV
2FW
1RY
'HF
-DQ
)HE
/RZ`
`
9ROXPHRQ
'DWHRIORZ
1RRI
GHEHQWXUHV
$YHUDJHIRU
WKH\HDU`
`
A
&RPPHQFHGWUDGLQJIURP2FWREHU
6RXUFHZZZQVHLQGLDFRP
3URYLGHG EHORZ DUH WKH KLJK ORZ DQG DYHUDJH PDUNHW SULFHV RI WKH QRQFRQYHUWLEOH GHEHQWXUHV RI RXU
&RPSDQ\EHDULQJ,6,1 1R ,1($RQWKH %6( DQGWKH 16(GXULQJWKHSUHFHGLQJWKUHH \HDUV
DQGIRUWKHVL[PRQWKVSUHFHGLQJWKHGDWHRIILOLQJRIWKLV3URVSHFWXV
<HDU
0RQWK
'DWHRI
+LJK
-DQA
)HE
-DQ
)HE
+LJK`
`
%6(
9ROXPHRQ
'DWHRIORZ
GDWHRI+LJK
1RRI
GHEHQWXUHV
-DQ
)HE
/RZ`
`
9ROXPHRQ
'DWHRIORZ
1RRI
GHEHQWXUHV
$YHUDJHIRU
WKH\HDU`
9ROXPHRQ
'DWHRIORZ
1RRI
GHEHQWXUHV
$YHUDJHIRU
WKH\HDU`
A&RPPHQFHGWUDGLQJIURP-DQXDU\
6RXUFHZZZEVHLQGLDFRP
<HDU
0RQWK
'DWHRI
+LJK
-DQA
)HE
-DQ
)HE
+LJK`
`
16(
9ROXPHRQ
'DWHRIORZ
GDWHRI+LJK
1RRI
GHEHQWXUHV
-DQ
)HE
/RZ`
`
A&RPPHQFHGWUDGLQJIURP-DQXDU\
6RXUFHZZZQVHLQGLDFRP
3URYLGHG EHORZ DUH WKH KLJK ORZ DQG DYHUDJH PDUNHW SULFHV RI WKH QRQFRQYHUWLEOH GHEHQWXUHV RI RXU
&RPSDQ\EHDULQJ,6,1 1R ,1($RQWKH%6(DQGWKH 16(GXULQJWKHSUHFHGLQJWKUHH \HDUV
DQGIRUWKHVL[PRQWKVSUHFHGLQJWKHGDWHRIILOLQJRIWKLV3URVSHFWXV
<HDU
0RQWK
'DWHRI
+LJK
+LJK`
`
-DQA
)HE
1,/
1,/
1,/
1,/
%6(
9ROXPHRQ
'DWHRIORZ
GDWHRI+LJK
1RRI
GHEHQWXUHV
1,/
1,/
1,/
1,/
/RZ`
`
1,/
1,/
9ROXPHRQ
'DWHRIORZ
1RRI
GHEHQWXUHV
1,/
1,/
$YHUDJHIRU
WKH\HDU`
9ROXPHRQ
'DWHRIORZ
1RRI
GHEHQWXUHV
1,/
1,/
$YHUDJHIRU
WKH\HDU`
1,/
1,/
A&RPPHQFHGWUDGLQJIURP-DQXDU\
6RXUFHZZZEVHLQGLDFRP
<HDU
0RQWK
'DWHRI
+LJK
+LJK`
`
-DQA
)HE
1,/
1,/
1,/
1,/
16(
9ROXPHRQ
'DWHRIORZ
GDWHRI+LJK
1RRI
GHEHQWXUHV
1,/
1,/
1,/
1,/
/RZ`
`
1,/
1,/
1,/
1,/
A&RPPHQFHGWUDGLQJIURP-DQXDU\
6RXUFHZZZQVHLQGLDFRP
3URYLGHG EHORZ DUH WKH KLJK ORZ DQG DYHUDJH PDUNHW SULFHV RI WKH QRQFRQYHUWLEOH GHEHQWXUHV RI RXU
&RPSDQ\EHDULQJ,6,1 1R ,1($RQWKH %6( DQGWKH 16(GXULQJWKHSUHFHGLQJWKUHH \HDUV
DQGIRUWKHVL[PRQWKVSUHFHGLQJWKHGDWHRIILOLQJRIWKLV3URVSHFWXV
<HDU
0RQWK
'DWHRI
+LJK
-DQA
)HE
-DQ
)HE
+LJK`
`
%6(
9ROXPHRQ
'DWHRIORZ
GDWHRI+LJK
1RRI
GHEHQWXUHV
-DQ
)HE
/RZ`
`
9ROXPHRQ
'DWHRIORZ
1RRI
GHEHQWXUHV
$YHUDJHIRU
WKH\HDU`
`
9ROXPHRQ
'DWHRIORZ
1RRI
GHEHQWXUHV
$YHUDJHIRU
WKH\HDU`
A&RPPHQFHGWUDGLQJIURP-DQXDU\
6RXUFHZZZEVHLQGLDFRP
<HDU
0RQWK
'DWHRI
+LJK
-DQA
)HE
-DQ
)HE
+LJK`
`
16(
9ROXPHRQ
'DWHRIORZ
GDWHRI+LJK
1RRI
GHEHQWXUHV
-DQ
)HE
/RZ`
`
A&RPPHQFHGWUDGLQJIURP-DQXDU\
6RXUFHZZZQVHLQGLDFRP
3URYLGHG EHORZ DUH WKH KLJK ORZ DQG DYHUDJH PDUNHW SULFHV RI WKH QRQFRQYHUWLEOH GHEHQWXUHV RI RXU
&RPSDQ\EHDULQJ,6,1 1R ,1($RQWKH %6( DQGWKH 16(GXULQJWKHSUHFHGLQJWKUHH \HDUV
DQGIRUWKHVL[PRQWKVSUHFHGLQJWKHGDWHRIILOLQJRIWKLV3URVSHFWXV
<HDU
0RQWK
'DWHRI
+LJK
-DQA
)HE
-DQ
)HE
+LJK`
`
%6(
9ROXPHRQ
'DWHRIORZ
GDWHRI+LJK
1RRI
GHEHQWXUHV
-DQ
)HE
/RZ`
`
9ROXPHRQ
'DWHRIORZ
1RRI
GHEHQWXUHV
$YHUDJHIRU
WKH\HDU`
9ROXPHRQ
'DWHRIORZ
1RRI
GHEHQWXUHV
1,/
$YHUDJHIRU
WKH\HDU`
A&RPPHQFHGWUDGLQJIURP-DQXDU\
6RXUFHZZZEVHLQGLDFRP
<HDU
0RQWK
'DWHRI
+LJK
-DQA
)HE
1,/
)HE
16(
9ROXPHRQ
'DWHRIORZ
GDWHRI+LJK
1RRI
GHEHQWXUHV
1,/
1,/
1,/
)HE
+LJK`
`
/RZ`
`
1,/
1,/
A&RPPHQFHGWUDGLQJIURP-DQXDU\
6RXUFHZZZQVHLQGLDFRP
3URYLGHG EHORZ DUH WKH KLJK ORZ DQG DYHUDJH PDUNHW SULFHV RI WKH QRQFRQYHUWLEOH GHEHQWXUHV RI RXU
&RPSDQ\EHDULQJ,6,1 1R ,1($RQWKH %6( DQGWKH 16(GXULQJWKHSUHFHGLQJWKUHH \HDUV
DQGIRUWKHVL[PRQWKVSUHFHGLQJWKHGDWHRIILOLQJRIWKLV3URVSHFWXV
<HDU
0RQWK
'DWHRI
+LJK
+LJK`
`
-DQA
)HE
1,/
1,/
1,/
1,/
%6(
9ROXPHRQ
'DWHRIORZ
GDWHRI+LJK
1RRI
GHEHQWXUHV
1,/
1,/
1,/
1,/
/RZ`
`
1,/
1,/
9ROXPHRQ
'DWHRIORZ
1RRI
GHEHQWXUHV
1,/
1,/
$YHUDJHIRU
WKH\HDU`
9ROXPHRQ
'DWHRIORZ
1RRI
GHEHQWXUHV
1,/
1,/
$YHUDJHIRU
WKH\HDU`
1,/
1,/
A&RPPHQFHGWUDGLQJIURP-DQXDU\
6RXUFHZZZEVHLQGLDFRP
<HDU
0RQWK
'DWHRI
+LJK
+LJK`
`
-DQA
)HE
1,/
1,/
1,/
1,/
16(
9ROXPHRQ
'DWHRIORZ
GDWHRI+LJK
1RRI
GHEHQWXUHV
1,/
1,/
1,/
1,/
/RZ`
`
1,/
1,/
1,/
1,/
A&RPPHQFHGWUDGLQJIURP-DQXDU\
6RXUFHZZZQVHLQGLDFRP
3URYLGHG EHORZ DUH WKH KLJK ORZ DQG DYHUDJH PDUNHW SULFHV RI WKH QRQFRQYHUWLEOH GHEHQWXUHV RI RXU
&RPSDQ\EHDULQJ,6,1 1R ,1($RQWKH %6( DQGWKH 16(GXULQJWKHSUHFHGLQJWKUHH \HDUV
DQGIRUWKHVL[PRQWKVSUHFHGLQJWKHGDWHRIILOLQJRIWKLV3URVSHFWXV
<HDU
0RQWK
'DWHRI
+LJK
-DQA
)HE
-DQ
)HE
%6(
9ROXPHRQ
'DWHRIORZ
GDWHRI+LJK
1RRI
GHEHQWXUHV
-DQ
)HE
+LJK`
`
/RZ`
`
9ROXPHRQ
'DWHRIORZ
1RRI
GHEHQWXUHV
$YHUDJHIRU
WKH\HDU`
`
9ROXPHRQ
'DWHRIORZ
1RRI
GHEHQWXUHV
$YHUDJHIRU
WKH\HDU`
A&RPPHQFHGWUDGLQJIURP-DQXDU\
6RXUFHZZZEVHLQGLDFRP
<HDU
0RQWK
'DWHRI
+LJK
-DQA -DQ
)HE )HE
+LJK`
`
16(
9ROXPHRQ
'DWHRIORZ
GDWHRI+LJK
1RRI
GHEHQWXUHV
-DQ
)HE
/RZ`
`
A&RPPHQFHGWUDGLQJIURP-DQXDU\
6RXUFHZZZQVHLQGLDFRP
3URYLGHG EHORZ DUH WKH KLJK ORZ DQG DYHUDJH PDUNHW SULFHV RI WKH QRQFRQYHUWLEOH GHEHQWXUHV RI RXU
&RPSDQ\EHDULQJ,6,1 1R ,1($RQWKH %6( DQGWKH 16(GXULQJWKHSUHFHGLQJWKUHH \HDUV
DQGIRUWKHVL[PRQWKVSUHFHGLQJWKHGDWHRIILOLQJRIWKLV3URVSHFWXV
<HDU
0RQWK
-DQA
)HE
'DWHRI
+LJK
+LJK`
`
1,/
1,/
1,/
1,/
9ROXPHRQ
GDWHRI+LJK
1RRI
GHEHQWXUHV
1,/
1,/
%6(
'DWHRIORZ
1,/
1,/
/RZ`
`
1,/
1,/
9ROXPHRQ
'DWHRIORZ
1RRI
GHEHQWXUHV
1,/
1,/
$YHUDJHIRU
WKH\HDU`
9ROXPHRQ
'DWHRIORZ
1RRI
GHEHQWXUHV
1,/
1,/
$YHUDJHIRU
WKH\HDU`
1,/
1,/
A&RPPHQFHGWUDGLQJIURP-DQXDU\
6RXUFHZZZEVHLQGLDFRP
<HDU
0RQWK
-DQA
)HE
'DWHRI
+LJK
+LJK`
`
1,/
1,/
1,/
1,/
9ROXPHRQ
GDWHRI+LJK
1RRI
GHEHQWXUHV
1,/
1,/
16(
'DWHRIORZ
1,/
1,/
/RZ`
`
1,/
1,/
1,/
1,/
A&RPPHQFHGWUDGLQJIURP-DQXDU\
6RXUFHZZZQVHLQGLDFRP
6RPHRIRXUSULYDWHO\SODFHGQRQFRQYHUWLEOHGHEHQWXUHVWKDWDUHOLVWHGRQ%6(KDYHQRWEHHQWUDGHGIRUWKHODVW
WKUHH\HDUV
),1$1&,$/,1'(%7('1(66
6HWIRUWKEHORZLVDEULHIVXPPDU\RIRXU&RPSDQ\¶VRXWVWDQGLQJVHFXUHGERUURZLQJVRI` ODNKV
DQGXQVHFXUHGERUURZLQJVRI` ODNKVDVRQ'HFHPEHUWRJHWKHUZLWKDEULHIGHVFULSWLRQRI
FHUWDLQVLJQLILFDQWWHUPVRIVXFKILQDQFLQJDUUDQJHPHQWV
I.
6HFXUHGERUURZLQJVDYDLOHGE\RXU&RPSDQ\
$
7HUPORDQV
6HWIRUWKEHORZLVDEULHIVXPPDU\RIRXUVHFXUHGWHUPORDQVDVRQ'HFHPEHU
` LQODNKV
6
QR
1DPHRI
OHQGHU
%DQNRI,QGLD
%DQN
RI
0DKDUDVKWUD
&DQDUD%DQN
2ULHQWDO %DQN
RI&RPPHUFH
$PRXQW
VDQFWLRQHG
3ULQFLSDO
5HSD\PHQWGDWHVFKHGXOH
DPRXQW
RXWVWDQGLQJ
%XOOHW UHSD\PHQW LQ RQH
LQVWDOPHQWDWWKHHQGRIWKUHH
\HDUV IURP WKH GDWH RI WKH
ILUVWGLVEXUVHPHQW
5HSD\DEOH LQ VL[ HTXDO
PRQWKO\ LQVWDOPHQWV SD\DEOH
IURPWKHWZHQW\IRXUWKWLOOWKH
WKLUWLHWK
PRQWK
IURP
GLVEXUVHPHQW
5HSD\DEOH LQ WZR HTXDO
LQVWDOPHQWV DW WKH HQG RI DQG PRQWKV UHVSHFWLYHO\
IURP WKH GDWH RI WKH ILUVW
GLVEXUVHPHQW
5HSD\DEOH LQ WZR HTXDO
LQVWDOPHQWV DW WKH HQG RI DQG PRQWKV UHVSHFWLYHO\
IURP WKH GDWH RI WKH ILUVW
GLVEXUVHPHQW
5HSD\DEOH LQ WZR HTXDO
LQVWDOPHQWV DW WKH HQG RI DQG PRQWKV UHVSHFWLYHO\
IURP WKH GDWH RI WKH ILUVW
GLVEXUVHPHQW
%XOOHW UHSD\PHQW LQ RQH
LQVWDOPHQW DW WKH HQG RI PRQWKV IURP WKH GDWH RI WKH
ILUVWGLVEXUVHPHQW
5HSD\DEOH LQ IRXU HTXDO
TXDUWHUO\ LQVWDOPHQWV WKH
ILUVW LQVWDOPHQW FRPPHQFLQJ
DIWHU WKUHH PRQWKV IURP WKH
GDWHV RI DYDLOPHQW RI HDFK
WUDQFKH
5HSD\DEOH LQ WKUHH HTXDO
LQVWDOPHQWV SD\DEOH DW WKH
HQGRIDQGPRQWKV
UHVSHFWLYHO\IURPWKHGDWHRI
WKHILUVWGLVEXUVHPHQW
5HSD\DEOH LQ IRXU HTXDO
6HFXULW\
+\SRWKHFDWLRQ RYHU SUHVHQW DQG
IXWXUH ERRNGHEWV RXWVWDQGLQJV
PRQH\ UHFHLYDEOHV FODLPV DQG ELOOV
RI RXU &RPSDQ\ RI DQ\ QDWXUH
FXUUHQWO\ EHLQJ GXH RU ZKLFK PD\
GXULQJ WKH FRQWLQXDQFH RI WKH
VHFXULW\ EH RZHG E\ WKH &RPSDQ\
WRDQ\SHUVRQRUHQWLW\
+\SRWKHFDWLRQ RI VSHFLILF ERRN
GHEWV
RXWVWDQGLQJV
PRQH\
UHFHLYDEOHV FODLPV DQG GXHV RI RXU
&RPSDQ\SUHVHQWDQGIXWXUH
+\SRWKHFDWLRQ RI UHFHLYDEOHV XQGHU
RXU &RPSDQ\¶V KLUH SXUFKDVH
DJUHHPHQWV
ILQDQFLDO
OHDVLQJ
DJUHHPHQWV K\SRWKHFDWLRQ ORDQ
DJUHHPHQWV DQG RYHU UHSRVVHVVHG
YHKLFOHVDQGUHFHLYDEOHVIURPVXQGU\
GHEWRUV
+\SRWKHFDWLRQ RI UHFHLYDEOHV XQGHU
RXU &RPSDQ\¶V KLUH SXUFKDVH
DJUHHPHQWV
ILQDQFLDO
OHDVLQJ
DJUHHPHQWV K\SRWKHFDWLRQ ORDQ
DJUHHPHQWV DQG RYHU UHSRVVHVVHG
YHKLFOHVDQGUHFHLYDEOHVIURPVXQGU\
GHEWRUV
+\SRWKHFDWLRQ RI UHFHLYDEOHV XQGHU
RXU &RPSDQ\¶V KLUH SXUFKDVH
DJUHHPHQWV
ILQDQFLDO
OHDVLQJ
DJUHHPHQWV K\SRWKHFDWLRQ ORDQ
DJUHHPHQWV DQG RYHU UHSRVVHVVHG
YHKLFOHVDQGUHFHLYDEOHVIURPVXQGU\
GHEWRUV
([FOXVLYH FKDUJH RQ VSHFLILF
UHFHLYDEOHV RI RXU &RPSDQ\ ZLWK
DVVHWFRYHUDJHRIWLPHV
+\SRWKHFDWLRQ
RI
VSHFLILF
UHFHLYDEOHV RI RXU &RPSDQ\ RXW RI
DVVHWV ILQDQFHG E\ RXU &RPSDQ\
ZLWKDVVHWFRYHUDJHRIWLPHV
([FOXVLYH FKDUJH RQ VSHFLILF
UHFHLYDEOHV RI RXU &RPSDQ\ RXW RI
WKH GHPDQG ORDQ NHHSLQJ D
VWLSXODWHGPDUJLQ
+\SRWKHFDWLRQ
RI
VSHFLILF
6
QR
1DPHRI
OHQGHU
$PRXQW
VDQFWLRQHG
3ULQFLSDO
DPRXQW
RXWVWDQGLQJ
&RUSRUDWLRQ
%DQN
6WDWH %DQN RI
3DWLDOD
6\QGLFDWH%DQN
6WDWH %DQN RI
7UDYDQFRUH
8&2%DQN
$OODKDEDG
%DQN
5HSD\PHQWGDWHVFKHGXOH
TXDUWHUO\ LQVWDOPHQWV SRVW D UHFHLYDEOHV RI RXU &RPSDQ\ FUHDWHG
VL[ PRQWK PRUDWRULXP DIWHU RXW RI WKH ORDQ LH IURP RQZDUG
WKHILUVWGLVEXUVHPHQW
OHQGLQJ RI WKH ORDQ DPRXQW WR VPDOO
EXVLQHVVHQWHUSULVHV
5HSD\DEOH LQ WZR HTXDO KDOI +\SRWKHFDWLRQ
RQ
VSHFLILF
\HDUO\ LQVWDOPHQWV DIWHU D UHFHLYDEOHV RI RXU &RPSDQ\ RQ WKH
PRUDWRULXPRIRQH\HDUIURP ORDQ DVVHWV FUHDWHG WKURXJK WKH
WKH GDWH RI DYDLOPHQW DW WKH SURFHHGV RI WKLV ORDQ NHHSLQJ D
HQG RI DQG PRQWKV VWLSXODWHGPDUJLQ
UHVSHFWLYHO\IURPWKHGDWHRI
DYDLOPHQW
%XOOHW UHSD\PHQW DW WKH HQG ([FOXVLYH
ILUVW
FKDUJH
RIIRXU\HDUVIURPWKHGDWHRI K\SRWKHFDWLRQ RYHU VSHFLILF VPDOO
DYDLOPHQW
HQWHUSULVHV VPDOO URDG WUDQVSRUW
RSHUDWRUV DVVHWV UHFHLYDEOHV RI RXU
&RPSDQ\ FUHDWHG RXW RI WKH
SURFHHGVRIWKLVORDQ
%XOOHW UHSD\PHQW DW WKH HQG +\SRWKHFDWLRQ RI VSHFLILF DVVHWV RI
RIPRQWKVIURPWKHGDWHRI RXU &RPSDQ\ LQ WKH QDWXUH RI
DYDLOPHQW
SUHVHQW DQG IXWXUH FXUUHQW DVVHWV
FRYHUHG XQGHU KLUHSXUFKDVH OHDVH
ORDQ DJUHHPHQWV ZLWK D PLQLPXP
DVVHW FRYHU RI D PLQLPXP RI WLPHV RI WKH DPRXQWV RXWVWDQGLQJ LQ
WKLVIDFLOLW\
5HSD\DEOH LQ WKUHH HTXDO +\SRWKHFDWLRQ RI VSHFLILF DVVHWV RI
DQQXDOLQVWDOPHQWV
RXU &RPSDQ\ LQ WKH QDWXUH RI
SUHVHQW DQG IXWXUH FXUUHQW DVVHWV
FRYHUHG XQGHU KLUHSXUFKDVH OHDVH
ORDQ DJUHHPHQWV ZLWK D PLQLPXP
DVVHW FRYHU RI D PLQLPXP RI WLPHV RI WKH DPRXQWV RXWVWDQGLQJ LQ
WKLVIDFLOLW\
%XOOHW UHSD\PHQW LQ RQH +\SRWKHFDWLRQ RI WKH VSHFLILF DVVHWV
LQVWDOPHQW DW WKH HQG RI RIRXU&RPSDQ\ ILQDQFHGRXWRIWKH
PRQWKV IURP WKH GDWH RI WKH SURFHHGV RI WKLV WHUP ORDQ WR WKH
ILUVWGLVEXUVHPHQW
H[WHQWRI`ODNKV
%XOOHW UHSD\PHQW LQ RQH +\SRWKHFDWLRQ RI WKH VSHFLILF DVVHWV
LQVWDOPHQW DW WKH HQG RI RIRXU&RPSDQ\ ILQDQFHGRXWRIWKH
PRQWKV IURP WKH GDWH RI WKH SURFHHGV RI WKLV WHUP ORDQ WR WKH
ILUVWGLVEXUVHPHQW
H[WHQWRI`ODNKV
5HSD\DEOH LQ WZR HTXDO +\SRWKHFDWLRQ RI WKH VSHFLILF DVVHWV
LQVWDOPHQWV DIWHU DQG RIRXU&RPSDQ\ ILQDQFHGRXWRIWKH
PRQWKV UHVSHFWLYHO\ IURP SURFHHGV RI WKLV WHUP ORDQ WR WKH
WKHGDWHRIDYDLOPHQW
H[WHQWRI`ODNKV
%XOOHW UHSD\PHQW LQ RQH +\SRWKHFDWLRQ
RI
VSHFLILF
LQVWDOPHQW DW WKH HQG RI UHFHLYDEOHV RI RXU &RPSDQ\
PRQWKV IURP WKH GDWH RI WKH H[WHQGHG WR LWV FXVWRPHUV WR WKH
ILUVWGLVEXUVHPHQW
H[WHQWRIRIWKHORDQDPRXQW
%XOOHW UHSD\PHQW LQ RQH +\SRWKHFDWLRQ RI VSHFLILHG ERRN
LQVWDOPHQWDWWKHHQGRIWKUHH GHEWVRIRXU&RPSDQ\
\HDUV IURP WKH GDWH RI WKH
ILUVWGUDZGRZQ
%XOOHW UHSD\PHQW LQ RQH +\SRWKHFDWLRQ RI VSHFLILF DQG
LQVWDOPHQW DW WKH HQG RI LGHQWLILHG UHFHLYDEOHV IURP DVVHWV RI
PRQWKV IURP WKH GDWH RI WKH RXU&RPSDQ\FUHDWHGRXWRIWKHORDQ
ILUVWGLVEXUVHPHQW
DPRXQWLQFOXGLQJDSSOLFDEOHPDUJLQ
DVVHW FRYHUDJH RI D PLQLPXP RI
WLPHV DQGH[FOXVLYH FKDUJHRQ
FRUUHVSRQGLQJLQVXUDQFHFODLPV
5HSD\DEOH LQ WKUHH HTXDO +\SRWKHFDWLRQ RI VSHFLILF DQG
LQVWDOPHQWV DW WKH HQG RI LGHQWLILHG UHFHLYDEOHV IURP DVVHWV RI
DQG PRQWKV IURP WKH RXU&RPSDQ\FUHDWHGRXWRIWKHORDQ
6HFXULW\
6
QR
1DPHRI
OHQGHU
$PRXQW
VDQFWLRQHG
3ULQFLSDO
DPRXQW
RXWVWDQGLQJ
$QGKUD%DQN
,QGLDQ%DQN
8QLWHG%DQNRI
,QGLD
9LMD\D%DQN
<HV
%DQN
/LPLWHG
'HQD%DQN
5HSD\PHQWGDWHVFKHGXOH
GDWHRIWKHILUVWGLVEXUVHPHQW DPRXQWZLWKDQDVVHWFRYHUDJH RID
PLQLPXP RI WLPHV DQG
H[FOXVLYH FKDUJH RQ FRUUHVSRQGLQJ
LQVXUDQFHFODLPV
5HSD\DEOH LQ HLJKW KDOI $VVLJQPHQW RI ORDQ UHFHLYDEOHV RI
\HDUO\ LQVWDOPHQWV WKH ILUVW RXU &RPSDQ\ H[FOXVLYHO\ WR WKH
LQVWDOPHQW WR IDOO VL[ PRQWKV OHQGHU
IURP WKH GDWH RI UHOHDVH RI
WKHORDQ
%XOOHW UHSD\PHQW LQ RQH +\SRWKHFDWLRQ RI JRRGV SURGXFH
LQVWDOPHQWDWWKHHQGRIWKUHH PHUFKDQGLVH VWRFN VWRUHG LQ WKH
\HDUV IURP WKH GDWH RI ILUVW SUHPLVHV RI RXU &RPSDQ\ IL[HG
DYDLOPHQW
DVVHWV SODQW DQG PDFKLQHU\ DQG
UHFHLYDEOHV IURP WHUP ORDQV
H[WHQGHG E\ RXU &RPSDQ\ WR VPDOO
URDGWUDQVSRUWRSHUDWRUV
5HSD\DEOH LQ VL[ HTXDO +\SRWKHFDWLRQ
RYHU
VSHFLILF
PRQWKO\ LQVWDOPHQWV DIWHU UHFHLYDEOHV RI RXU &RPSDQ\ ZLWK D
PRQWKV IURP WKH GDWH RI PDUJLQRI
GLVEXUVHPHQW
5HSD\DEOH LQ IRXU HTXDO +\SRWKHFDWLRQ RI IXWXUH UHFHLYDEOHV
\HDUO\
LQVWDOPHQWV RI RXU &RPSDQ\ DULVLQJ RXW RI
FRPPHQFLQJIURPWKHHQGRI DJULFXOWXUDO DVVHW ORDQV DQG ORDQV
PRQWKV IURP WKH GDWH RI H[WHQGHGE\RXU&RPSDQ\WRPLFUR
WKHILUVWGLVEXUVHPHQW
VPDOO DQG PHGLXP HQWHUSULVHV ZLWK
D FKDUJH RQ WKH XQGHUO\LQJ DVVHWV
WKHUHRI
5HSD\DEOH LQ IRXU HTXDO +\SRWKHFDWLRQ RI IXWXUH UHFHLYDEOHV
\HDUO\
LQVWDOPHQWV RI RXU &RPSDQ\ QRW FKDUJHG ZLWK
FRPPHQFLQJIURPWKHHQGRI DQ\ RWKHU OHQGHU DULVLQJ RXW RI
PRQWKV IURP WKH GDWH RI DJULFXOWXUDO DVVHW ORDQV DQG ORDQV
WKHILUVWGLVEXUVHPHQW
H[WHQGHGE\RXU&RPSDQ\WRPLFUR
VPDOO DQG PHGLXP HQWHUSULVHV ZLWK
D PDUJLQRI ZLWKDFKDUJHRQ
WKHXQGHUO\LQJDVVHWVWKHUHRI
5HSD\DEOHLQPRQWKVZLWK +\SRWKHFDWLRQ RI VSHFLILF IXWXUH
DQ LQLWLDO PRUDWRULXP RI UHFHLYDEOHV XQGHU PLFUR DQG VPDOO
PRQWKV DQG WKHUHDIWHU HQWHUSULVHV VHFWRU DFFRXQWV RQO\
UHSD\DEOH LQ HTXDWHG SULQFLSDO DPRXQWV DORQJ ZLWK
PRQWKO\LQVWDOPHQWV
K\SRWKHFDWLRQ RI WKH XQGHUO\LQJ
DVVHWVFUHDWHGRXWRIRQZDUGOHQGLQJ
IURP WKLV IDFLOLW\ WR WKH H[WHQW RI
WLPHVRIWKHORDQDPRXQW
%XOOHW UHSD\PHQW LQ RQH +\SRWKHFDWLRQ RYHU VSHFLILF IXWXUH
LQVWDOPHQW DW WKH HQG RI UHFHLYDEOHVRIRXU&RPSDQ\IURPLWV
PRQWKV IURP WKH GDWH RI WKH ORDQSRUWIROLRWRWKHPLFURDQGVPDOO
ILUVWGLVEXUVHPHQW
HQWHUSULVHV VHFWRU WR WKH H[WHQW RI
WLPHVRIWKHORDQDPRXQW
%XOOHW UHSD\PHQW LQ RQH +\SRWKHFDWLRQ RI WKH ZKROH RI WKH
LQVWDOPHQW DW WKH HQG RI FXUUHQW DVVHWV RI RXU &RPSDQ\¶V
PRQWKV IURP WKH GDWH RI WKH VWRFNV RI UDZ PDWHULDO VHPL
ILUVWGLVEXUVHPHQW
IXUQLVKHG IXUQLVKHG JRRGV VWRUHV
DQG VSDUHV LQFOXGLQJ WKRVH UHODWLQJ
WRSODQWDQGPDFKLQHU\FRQVXPDEOH
VWRUHV DQG VSDUHV ELOOV UHFHLYDEOHV
DQGERRNGHEWVDQGRWKHUUHFHLYDEOHV
RI RXU &RPSDQ\ ERWK SUHVHQW DQG
IXWXUHDVVHWFRYHUDJHRIWLPHV
5HSD\DEOH LQ IRXU HTXDO KDOI +\SRWKHFDWLRQ RI UHFHLYDEOHV RI RXU
\HDUO\
LQVWDOPHQWV &RPSDQ\ DULVLQJ RXW RI KLUH
FRPPHQFLQJDWWKHHQGRI SXUFKDVHK\SRWKHFDWLRQDJUHHPHQWV
PRQWKV IURP WKH GDWH RI
DYDLOPHQW
6HFXULW\
6
QR
1DPHRI
OHQGHU
$PRXQW
VDQFWLRQHG
3ULQFLSDO
5HSD\PHQWGDWHVFKHGXOH
DPRXQW
RXWVWDQGLQJ
%XOOHW UHSD\PHQW LQ RQH
LQVWDOPHQW DW WKH HQG RI PRQWKV IURP WKH GDWH RI WKH
ILUVWGLVEXUVHPHQW
-DPPX
.DVKPLU%DQN
8QLRQ %DQN RI
,QGLD
%XOOHW UHSD\PHQW LQ RQH
LQVWDOPHQWDWWKHHQGRIWKUHH
\HDUV IURP WKH GDWH RI WKH
ILUVWGLVEXUVHPHQW
%XOOHW UHSD\PHQW LQ RQH
LQVWDOPHQWDWWKHHQGRIWKUHH
\HDUV IURP WKH GDWH RI WKH
ILUVWGLVEXUVHPHQW
5HSD\DEOH LQ WKUHH HTXDO
\HDUO\
LQVWDOPHQWV
FRPPHQFLQJ
DIWHU
D
PRUDWRULXP SHULRG RI RQH
\HDU
,1*
%DQN
9\V\D
%DQNRI%DURGD
,QGLDQ
2YHUVHDV%DQN
,QGXV,QG %DQN
/LPLWHG
5HSD\DEOH LQ VL[ HTXDO
TXDUWHUO\
LQVWDOPHQWV
FRPPHQFLQJPRQWKVIURP
GLVEXUVDO
&HQWUDO %DQN
RI,QGLD
3D\DEOH LQ WKUHH HTXDO KDOI
\HDUO\
LQVWDOPHQWV
FRPPHQFLQJIURPPRQWKV
IURPWKHILUVWGUDZGRZQ
:RRUL%DQN
6PDOO
,QGXVWULHV
'HYHORSPHQW
%DQNRI,QGLD
%XOOHW UHSD\PHQW LQ RQH
LQVWDOPHQW DW WKH HQG RI RQH
\HDU IURP WKH GDWH RI
GLVEXUVHPHQW
2QDQDQQXDOEDVLVZLWK
EHLQJUHSDLGDWWKHHQGRI
PRQWKV DQG PRQWKV EHLQJUHSDLGDWWKHHQGRI
DQG PRQWKV DQG EHLQJUHSDLGDWWKHHQGRI
DQG PRWKV UHVSHFWLYHO\
IURP WKH GDWH RI ILUVW
GLVEXUVHPHQW
5HSD\PHQW LQ VL[ XQHTXDO
LQVWDOPHQWV
FRPPHQFLQJ
IURPWKHHQGRIPRQWKVRI
WKH GDWH RI WKH ILUVW
GLVEXUVHPHQW DQG HQGLQJ PRQWKVIURPWKHGDWHRI ILUVW
GLVEXUVHPHQW
%XOOHW UHSD\PHQW LQ RQH
LQVWDOPHQW DW WKH HQG RI PRQWKV IURP WKH GDWH RI WKH
ILUVWGLVEXUVHPHQW
%XOOHW UHSD\PHQW LQ RQH
LQVWDOPHQW DW WKH HQG RI IRXU
\HDUV IURP WKH GDWH RI
GLVEXUVHPHQW
6HFXULW\
6SHFLILF DQG H[FOXVLYH E\ ZD\ RI
DVVLJQPHQW RI ORDQ DVVHWV ERRN
GHEWV RI RXU &RPSDQ\ H[WHQGHG RXW
RI WKH SURFHHGV RI WKLV IDFLOLW\ ZLWK
DVVHW FRYHU WLPHV RI WKH ORDQ
DPRXQW
+\SRWKHFDWLRQ
RI
VSHFLILF
UHFHLYDEOHV RI RXU &RPSDQ\ DQG
WDQJLEOH PRYDEOH SODQW DQG
PDFKLQHU\ RI RXU &RPSDQ\ ERWK
SUHVHQWDQGIXWXUH
+\SRWKHFDWLRQ RI DVVHWV SXUFKDVHG
E\RXU&RPSDQ\RXWRIWKHSURFHHGV
RI WKLV ORDQ DQG RI VSHFLILHG
UHFHLYDEOHVRIRXU&RPSDQ\
+\SRWKHFDWLRQ RYHU VSHFLILF KLUH
SXUFKDVH DQG OHDVHG DVVHWV RI RXU
&RPSDQ\ DQG UHVXOWDQW ERRN GHEWV
DFTXLUHG WR EH DFTXLUHG IURP WKH
ORDQ DPRXQW PLQLPXP DVVHW FRYHU
RIWLPHV
+\SRWKHFDWLRQ
RI
VSHFLILF
UHFHLYDEOHV RI RXU &RPSDQ\ WR WKH
H[WHQWRIRIWKHORDQDPRXQW
+\SRWKHFDWLRQ RI VSHFLILF IXWXUH
UHFHLYDEOHV RI RXU &RPSDQ\ QRW
RXWVWDQGLQJ IRU PRUH WKDQ PRQWKV DORQJ ZLWK WKH XQGHUO\LQJ
DVVHWVILQDQFHGE\RXU&RPSDQ\
+\SRWKHFDWLRQ RI XQHQFXPEHUHG
ORDQ UHFHLYDEOHV RI RXU &RPSDQ\
DULVLQJ IURP VHFXUHG UHWDLO ORDQV
H[WHQGHG E\ RXU &RPSDQ\ ZLWK
VHFXULW\ FRYHU RI WLPHV DW DOO
SRLQWVRIWLPH
+\SRWKHFDWLRQ RI VSHFLILF IXWXUH
UHFHLYDEOHV RI RXU &RPSDQ\ DULVLQJ
IURP LWV KLUHSXUFKDVH DJUHHPHQWV
ILQDQFLDO OHDVH DJUHHPHQWV DQG ORDQ
DJUHHPHQWVZLWKDPDUJLQ
+\SRWKHFDWLRQ
RI
VSHFLILF
UHFHLYDEOHV RI RXU &RPSDQ\ ZLWK
DVVHW FRYHUDJH RI WR EH
PDLQWDLQHGDWDOOWLPHV
+\SRWKHFDWLRQ RQ WKH HTXLSPHQW
SODQW DQG PDFKLQHU\ YHKLFOHV DQG
RWKHU DVVHWV WKDW PD\ EH DFTXLUHG
DUH WR EH DFTXLUHG E\ RXU &RPSDQ\
XWLOLVLQJ WKHVH ORDQ IXQGV ZLWK D
PDUJLQ
+\SRWKHFDWLRQ RQ DOO WKH SODQW
PDFKLQHU\HTXLSPHQWWRROVVSDUHV
DFFHVVRULHV DQG DOO RWKHU DVVHWV RI
RXU &RPSDQ\ LQFOXGLQJ PRWRU
YHKLFOHVDOOVXFKDVVHWVDFTXLUHGDUH
WR EH DFTXLUHG E\ RXU &RPSDQ\
XWLOLVLQJ WKHVH ORDQ IXQGV ZLWK D
PDUJLQ
7KHRULJLQDOWHUPORDQDPRXQWVDQFWLRQHGXQGHUWKLVIDFLOLW\ZDV`ODNKV6XEVHTXHQWO\DQDPRXQWRI`ODNKVZDVFDUYHGRXW
RIWKHWHUPORDQIDFLOLW\DQGFUHDWHGDVDFDVKFUHGLWEDQNJXDUDQWHHOLPLW6HHWKHVXEVHFWLRQWLWOHG³±&DVK&UHGLW)DFLOLWLHV´EHORZ
%
&DVKFUHGLWIDFLOLWLHV
6HW IRUWK EHORZ LV D EULHI VXPPDU\ RI RXU VHFXUHG FDVK FUHGLW IDFLOLWLHV DV RQ 'HFHPEHU 2XU FDVK
FUHGLWIDFLOLWLHVDUHDOOUHSD\DEOHXSRQGHPDQGE\WKHUHVSHFWLYHOHQGHUV
` LQODNKV
6
QR
1DPHRIOHQGHU
,1*9\V\D%DQN
$PRXQW
VDQFWLRQHG
3ULQFLSDODPRXQW
RXWVWDQGLQJ
3XQMDE 1DWLRQDO
%DQN
,QGLDQ 2YHUVHDV
%DQN
%DQN
0DKDUDVKWUD
RI
&LW\ 8QLRQ %DQN
/LPLWHG
2ULHQWDO %DQN RI
&RPPHUFH
)HGHUDO%DQN
-DPPX
.DVKPLU%DQN
%DQNRI,QGLD
,QGLDQ%DQN
7DPLO
1DGX
0HUFDQWLOH%DQN
'HQD%DQN
7KH 6RXWK ,QGLDQ
%DQN
&HQWUDO %DQN RI
,QGLD
6HFXULW\
+\SRWKHFDWLRQRQ VSHFLILF KLUHSXUFKDVH DQG OHDVHG
DVVHWVRIRXU&RPSDQ\DQGUHVXOWDQWERRNGHEWV
+\SRWKHFDWLRQ RI VWRFN RQ KLUH QHW RI XQPDWXUHG
ILQDQFH FKDUJHV UHVLGXDO YDOXH RI KLUHSXUFKDVH
DUUDQJHPHQWVDQGRWKHUDFFUXDOVIURPKLUHSXUFKDVH
DUUDQJHPHQWV RI RXU &RPSDQ\ GXO\ DVVLJQHG LQ
IDYRXURIWKHOHQGHU
+\SRWKHFDWLRQ RQ VSHFLILF IXWXUH UHFHLYDEOHV RI RXU
&RPSDQ\ RXWVWDQGLQJ IRU QRW ORQJHU WKDQ PRQWKV DORQJ ZLWK XQGHUO\LQJ DVVHWV ILQDQFHG E\
RXU&RPSDQ\LQUHODWLRQWRWKHVHUHFHLYDEOHV
+\SRWKHFDWLRQRQRXU&RPSDQ\¶VSUHVHQWDQGIXWXUH
PRYHDEOH SODQWV DQG PDFKLQHU\ JRRGV VWRFNV RI
UDZ PDWHULDOV LWHPV LQYHQWRULHV VWRFNV LQ SURFHVV
VHPLIXUQLVKHGDQGILQLVKHGJRRGVVWRUHVDQGVSDUHV
FRQVXPDEOH VWRUHV DQG VSDUHV VWRFN LQ WUDGH
JRRGV LQ SURFHVV PRYDEOHV LQ WUDQVLW DQG SUHVHQW
DQG IXWXUH WDQJLEOH DQG LQWDQJLEOH DVVHWV YHKLFOHV
JRRGZLOOWUDGHPDUNFRS\ULJKWSDWHQWDQGDOOULJKWV
WLWOHVDQGEHQHILWVWKHUHRQ
+\SRWKHFDWLRQRIDOOPRWRUYHKLFOHVWREHOHWRXWE\
RXU &RPSDQ\ IRU KLUH IURP RXU &RPSDQ\ ZLWK DQ
RSWLRQWRKLUHSXUFKDVHVXFKYHKLFOHV
+\SRWKHFDWLRQ E\ DVVLJQPHQW RI ERRN GHEWV RI RXU
&RPSDQ\ LQ UHODWLRQ WR YHKLFXODU ORDQV IXQGHG E\
WKHZRUNLQJFDSLWDOORDQDPRXQW
+\SRWKHFDWLRQ RI VSHFLILF UHFHLYDEOHV RI RXU
&RPSDQ\ZLWKDPDUJLQ
+\SRWKHFDWLRQ E\ DVVLJQPHQW RI ORDQ DVVHWV ERRN
GHEWV RI RXU &RPSDQ\ SHUWDLQLQJ WR ORDQV FUHDWHG
RXWRIEDQNILQDQFHZLWKDPDUJLQ
+\SRWKHFDWLRQRYHUVSHFLILFLGHQWLILHGDVVHWVRIRXU
&RPSDQ\ SHUWDLQLQJ WR YDULRXV KLUH SXUFKDVH OHDVH
ILQDQFLQJ ORDQ K\SRWKHFDWLRQ GRFXPHQWV WR EH
DFTXLUHGWKURXJKWKLVORDQDQGRYHUDOOERRNGHEWV
PRQH\ UHFHLYDEOHV FODLPV DQG ELOOV ERWK SUHVHQW
DQG IXWXUH SHUWDLQLQJ WR VXFK KLUH SXUFKDVH OHDVH
ILQDQFHORDQK\SRWKHFDWLRQGRFXPHQWV
+\SRWKHFDWLRQ H[FOXVLYH FKDUJH RYHU LGHQWLILHG
UHFHLYDEOHVRIRXU&RPSDQ\ZRUWK`ODNKVDV
DW2FWREHU
+\SRWKHFDWLRQ RYHU RXU &RPSDQ\¶V SUHVHQW DQG
IXWXUH ERRN GHEWV ELOOV FRQWUDFWV VHFXULWLHV
LQYHVWPHQWV ULJKWV DQG DVVWV H[FHSW IRU SURSHUW\
RWKHUZLVHK\SRWKHFDWHGDQGFKDUJHGWRWKHOHQGHU
+\SRWKHFDWLRQRIIXWXUHUHFHLYDEOHVRIRXU&RPSDQ\
XQGHULWVKLUHSXUFKDVHDJUHHPHQWVILQDQFLDOOHDVHG
DJUHHPHQWV UHSRVVHVVHG YHKLFOHV DQG UHFHLYDEOHV
IURPVXQGU\GHEWRUV
+\SRWKHFDWLRQ RI VSHFLILF UHFHLYDEOHV RI RXU
&RPSDQ\ DULVLQJ RXW RI RQZDUG OHQGLQJ IURP WKH
OHQGHU¶VVDQFWLRQHGOLPLW
+\SRWKHFDWLRQ RI VSHFLILF UHFHLYDEOHV RI RXU
&RPSDQ\ IURP VPDOO DQG PLFUR HQWHUSULVHV LQ WKH
PDQXIDFWXULQJDQGVHUYLFHVVHFWRUV
6
QR
1DPHRIOHQGHU
&DQDUD%DQN
$PRXQW
VDQFWLRQHG
3ULQFLSDODPRXQW
RXWVWDQGLQJ
6WDWH %DQN RI
3DWLDOD
8QLRQ %DQN RI
,QGLD
8QLWHG %DQN RI
,QGLD
6WDWH %DQN RI
0\VRUH
.RWDN 0DKLQGUD
%DQN
6WDWH %DQN RI
,QGLD
,QGXV,QG
/LPLWHG
%DQN
'HYHORSPHQW
%DQN
RI
6LQJDSRUH
&RUSRUDWLRQ%DQN
,'%,
/LPLWHG
6\QGLFDWH%DQN
6WDWH %DQN RI
0DXULWLXV
.DUXU
9\V\D
%DQN
$QGKUD%DQN
$[LV%DQN
%DQN
6HFXULW\
+\SRWKHFDWLRQ RI VSHFLILF UHFHLYDEOHV RI RXU
&RPSDQ\ DULVLQJ RXW RI WKH DVVHWV ILQDQFHG E\ RXU
&RPSDQ\ WR WKH 60( VHJPHQWQRQ60( VHJPHQW
JHQHUDOEXVLQHVVSURFHVVHVRXWRIWKLVORDQ
+\SRWKHFDWLRQ RI SUHVHQW DQG IXWXUH UHFHLYDEOHV RI
RXU &RPSDQ\ FRYHUHG E\ VSHFLILF KLUHSXUFKDVH
OHDVH ORDQ DJUHHPHQWV ZLWK DVVHW FRYHUDJH RI D
PLQLPXPRIWLPHV
+\SRWKHFDWLRQ RI VWRFNV RQ KLUHG DVVHWV DQG
UHFHLYDEOHV XQGHU KLUHSXUFKDVH DJUHHPHQWV RI RXU
&RPSDQ\
+\SRWKHFDWLRQ RI JROG ORDQ UHFHLYDEOHV RI RXU
&RPSDQ\ DQG FKDUJH RQ WKH XQGHUO\LQJ DVVHWV
WKHUHRI
+\SRWKHFDWLRQ RQ VSHFLILF SUHVHQW DQG IXWXUH
UHFHLYDEOHVFRYHUHGE\VSHFLILFKLUHSXUFKDVHOHDVH
DVVHW EDFN ORDQ DJUHHPHQWV RI RXU &RPSDQ\ ZLWK
DVVHWFRYHUDJHRIDPLQLPXPRIWLPHV
+\SRWKHFDWLRQ RQ VSHFLILF ERRN GHEWV ORDQ
UHFHLYDEOHV RI RXU &RPSDQ\ ERWK SUHVHQW DQG
UHFHLYDEOHV
IXWXUH
LQFOXGLQJ
ERRNGHEWV
RXWVWDQGLQJ PRQH\V FODLPV GHPDQGV ELOOV
FRQWUDFWV HQJDJHPHQWV DQG VHFXULWLHV KHOG E\ RXU
&RPSDQ\ VWRFNV RI UDZ PDWHULDOV VHPLIXUQLVKHG
DQGIXUQLVKHGJRRGVDQGRWKHUUHODWHGPRYDEOHV
+\SRWKHFDWLRQ RI VSHFLILF JRRGV ERRNGHEWV DQG
PRYDEOH DVVHWV RI RXU &RPSDQ\ LQFOXGLQJ
GRFXPHQWVRIWLWOHWRJRRGVRXWVWDQGLQJPRQH\VDQG
UHFHLYDEOHV
+\SRWKHFDWLRQRIXQHQFXPEHUHGORDQUHFHLYDEOHVRI
RXU &RPSDQ\ DULVLQJ IURP VHFXUHG UHWDLO ORDQV
H[WHQGHG E\ RXU &RPSDQ\ ZLWK VHFXULW\ FRYHU RI
WLPHVDWDOOSRLQWVRIWLPH
+\SRWKHFDWLRQRQORDQUHFHLYDEOHVRIRXU&RPSDQ\
UHODWHGWRROGWUXFNORDQVFRPPHUFLDOYHKLFOHORDQV
HQWHUSULVHILQDQFHORDQVDQGPLFURILQDQFHORDQV
+\SRWKHFDWLRQH[FOXVLYHILUVWFKDUJHRYHUVSHFLILF
UHFHLYDEOHV DVVHWV RI RXU &RPSDQ\ LQ UHODWLRQ WR
ORDQV H[WHQGHG WR VPDOO HQWHUSULVHV VPDOO URDG
WUDQVSRUWRSHUDWRUV
+\SRWKHFDWLRQRYHUDOOULJKWVWLWOHVEHQHILWVFODLPV
DQG UHFHLYDEOHV RI RXU &RPSDQ\ RYHU YDULRXV
DJUHHPHQWV IRU VSHFLILF DJULFXOWXUDO DVVHWV DQG
K\SRWKHFDWLRQ RYHU VSHFLILF DJULFXOWXUDO DVVHWV
ILQDQFHG XQGHU YDULRXV DJULFXOWXUDO ILQDQFLQJ
DJUHHPHQWV RI RXU &RPSDQ\ DORQJ ZLWK WRROV
DFFHVVRULHVDQGHTXLSPHQWWKHUHRI
+\SRWKHFDWLRQRIWKHVSHFLILFDVVHWVRIRXU&RPSDQ\
ILQDQFHG RXW RI WKH SURFHHGV RI WKLV IDFLOLW\ WR WKH
H[WHQWRI`ODNKV
+\SRWKHFDWLRQRIUHFHLYDEOHVDQGERRNGHEWVRIRXU
&RPSDQ\ RYHU ORDQV JUDQWHG E\ RXU &RPSDQ\ WR
VPDOO DQG PHGLXP HQWHUSULVHV PLFUR VPDOO DQG
PHGLXPHQWHUSULVHV
+\SRWKHFDWLRQ RI VSHFLILF UHFHLYDEOHV RI RXU
&RPSDQ\RIPDWXULW\RIRQH\HDU
+\SRWKHFDWLRQRI DOO RI RXU &RPSDQ\
V SUHVHQW DQG
IXWXUH JRRGV SURGXFH DQG PHUFKDQGLVH YHKLFOHV
H[LVWLQJWREHSXUFKDVHGRXWRIWKHSURFHHGVRIWKLV
IDFLOLW\ WDQJLEOH SODQW DQG PDFKLQHU\ SUHVHQW DQG
IXWXUH ERRN GHEWV DQG RXWVWDQGLQJ UHFHLYDEOHV RI
RXU&RPSDQ\
+\SRWKHFDWLRQ RYHU VWDQGDUG DVVHWV SRUWIROLR RI
UHFHLYDEOHVRIRXU&RPSDQ\
6
QR
1DPHRIOHQGHU
+')&
/LPLWHG
%DQN
$PRXQW
VDQFWLRQHG
,&,&,
/LPLWHG
%DQN
3ULQFLSDODPRXQW
RXWVWDQGLQJ
6HFXULW\
+\SRWKHFDWLRQRIDOORXWVWDQGLQJPRQLHVUHFHLYDEOH
FODLPVELOOVGXHQRZRUIXWXUHRIRXU&RPSDQ\LQ
WKHFRXUVHRILWVEXVLQHVV
+\SRWKHFDWLRQ RYHU VSHFLILF UHFHLYDEOHV JHQHUDWHG
E\ RXU &RPSDQ\ IURP WKH SURFHHGV RI WKLV IDFLOLW\
ZLWKDVVHWFRYHUDJHRIWLPHV
$QDPRXQWRI`ODNKVZDVFDUYHGRXWRIWKHWHUPORDQIDFLOLW\H[WHQGHGE\,QGXV,QG%DQN/LPLWHGRI`ODNKVDQGFUHDWHGDVD
FDVKFUHGLWEDQNJXDUDQWHHOLPLW6HHWKHVXEVHFWLRQWLWOHG³±7HUP/RDQ)DFLOLWLHV´DERYH
&
6HFXUHGQRQFRQYHUWLEOHGHEHQWXUHV
6HWIRUWKEHORZLVDEULHIVXPPDU\RIRXUVHFXUHGQRQFRQYHUWLEOHGHEHQWXUHVDVRQ'HFHPEHU
L
1RQFRQYHUWLEOHGHEHQWXUHVLVVXHGWKURXJKSXEOLFRIIHULQJV
6HWIRUWKEHORZLVDEULHIVXPPDU\RIRXUVHFXUHGQRQFRQYHUWLEOHGHEHQWXUHVLVVXHGWKURXJKSXEOLFRIIHULQJVDV
RQ'HFHPEHU
` LQODNKV
,VVXH
'HEHQWXUH
7HQXUH
6HULHV
0DWXULW\
2SWLRQ
6HULHV,
PRQWKV
&RXSRQ
UDWH
3XEOLF
RIIHULQJRI
QRQ
FRQYHUWLEOH
GHEHQWXUHV
³
1&'V´RI 6HULHV,,
IDFHYDOXH
DQGLVVXH
SULFHRI`
LQ
)LVFDO
6HULHV,,,
PRQWKV
PRQWKV
IRUQRQ
LQGLYLGXDOV
IRU
LQGLYLGXDOV
IRUQRQ
LQGLYLGXDOV
IRU
LQGLYLGXDOV
6HULHV,9
PRQWKV
PRQWKV
VXEMHFWWR
WKH
H[HUFLVHRI
DSXW
RSWLRQ
H[HUFLVDEOH
DWWKHHQG
RI
PRQWKV
IURPWKH
GHHPHG
GDWHRI
DOORWPHQW
IRUKROGHUV
IURP
µ&DWHJRU\,¶
DQG
µ&DWHJRU\
,,¶
IRUKROGHUV
IURPWKH
µ5HVHUYHG
,QGLYLGXDO
3RUWLRQ¶
IRUKROGHUV
IURPWKH
µ8QUHVHUYHG
,QGLYLGXDO
3RUWLRQ¶
IRUKROGHUV
IURP
µ&DWHJRU\,¶
DQG
µ&DWHJRU\
3XEOLF
2SWLRQ,
RIIHULQJRI
QRQ
FRQYHUWLEOH
GHEHQWXUHV
³
1&'V´RI
IDFHYDOXH
DQGLVVXH
SULFHRI`
LQ
)LVFDO
³
1&'
,VVXH´
2SWLRQ,,
PRQWKV
5HGHPSWLRQ
GDWH
6FKHGXOH
2FWREHU
$PRXQW
&UHGLW
UDWLQJ
6HFXULW\
2FWREHU
µ&$5(
$$¶E\
&$5(
DQG
µ&5,6,/
$$
6WDEOH¶E\
&5,6,/
)LUVW DQG H[FOXVLYH
FKDUJH
RYHU
LGHQWLILHG
LPPRYDEOH
SURSHUW\
DQG
VSHFLILHG
IXWXUH
UHFHLYDEOHV RI RXU
&RPSDQ\
$XJXVW
µ&$5(
$$¶E\
&$5(
DQG
µ&5,6,/
$$
6WDEOH¶E\
&5,6,/
)LUVW DQG H[FOXVLYH
FKDUJH
RYHU
LGHQWLILHG
LPPRYDEOH
SURSHUW\
DQG
VSHFLILHG
IXWXUH
UHFHLYDEOHV RI RXU
&RPSDQ\
2FWREHU
2FWREHU
2FWREHU
$XJXVW
$XJXVW
'DWHRI
DOORWPHQW
,VVXH
'HEHQWXUH
6HULHV
2SWLRQ
7HQXUH
0DWXULW\
&RXSRQ
UDWH
5HGHPSWLRQ
GDWH
6FKHGXOH
,,¶
'DWHRI
DOORWPHQW
$PRXQW
&UHGLW
UDWLQJ
6HFXULW\
IRUKROGHUV
IURPWKH
µ5HVHUYHG
,QGLYLGXDO
3RUWLRQ¶
IRUKROGHUV
IURPWKH
µ8QUHVHUYHG
,QGLYLGXDO
3RUWLRQ¶
+ROGHUVRI1&'VXQGHU6HULHV,,,DQG6HULHV,9DUHQRWHQWLWOHGWRSHULRGLFLQWHUHVWSHULRGV6HULHV,,,1&'KROGHUVDUHHQWLWOHGWRUHFHLYHDQ
DPRXQWRI`SHU1&'LQFDVHRIDQLQGLYLGXDO1&'KROGHUHIIHFWLYH\LHOGRISDDQG`SHU1&'LQFDVHRIDQRQ
LQGLYLGXDO1&'KROGHUHIIHFWLYH\LHOGRISDRQWKHGDWHRIUHGHPSWLRQRIWKH6HULHV,,,1&'V6HULHV,91&'KROGHUVDUHHQWLWOHG
WRUHFHLYHDQDPRXQWRI`SHU1&'LQFDVHRIDQLQGLYLGXDO1&'KROGHUHIIHFWLYH\LHOGRISDDQG `SHU1&'LQ
FDVHRIDQRQLQGLYLGXDO1&'KROGHUHIIHFWLYH\LHOGRISDRQWKHGDWHRIUHGHPSWLRQRIWKH6HULHV,91&'V
)RUWKHSXUSRVHVRIWKH1&',VVXHL&DWHJRU\,RIKROGHUVRI1&'VFRPSULVHGHOLJLEOHSXEOLFILQDQFLDOLQVWLWXWLRQVVWDWXWRU\FRUSRUDWLRQV
FRPPHUFLDOEDQNVFRRSHUDWLYHEDQNVUHJLRQDOUXUDOEDQNVSURYLGHQWIXQGVSHQVLRQIXQGVVXSHUDQQXDWLRQIXQGVJUDWXLW\IXQGV6(%,UHJLVWHUHGYHQWXUH
FDSLWDOIXQGVLQVXUDQFHFRPSDQLHVUHJLVWHUHGZLWK,5'$1DWLRQDO,QYHVWPHQW)XQGDQGPXWXDOIXQGVUHJLVWHUHGZLWK6(%,LL&DWHJRU\,,RIKROGHUVRI
1&'V FRPSULVHG HOLJLEOH FRPSDQLHV ERGLHV FRUSRUDWH VRFLHWLHV SXEOLFSULYDWH FKDULWDEOHUHOLJLRXV WUXVWV VFLHQWLILF DQGRU LQGXVWULDO UHVHDUFK
RUJDQLVDWLRQV SDUWQHUVKLS ILUPV DQG OLPLWHG OLDELOLW\ SDUWQHUVKLSV LLL WKH 5HVHUYHG ,QGLYLGXDO 3RUWLRQ FRPSULVHG RI KROGHUV RI 1&'V ZKR ZHUH
UHVLGHQW ,QGLDQ LQGLYLGXDOV DQG +8)V DSSO\LQJ WR WKH H[WHQW RI ` ODNKV DFURVV DOO 2SWLRQV RI 1&'V DQG LY WKH 8QUHVHUYHG ,QGLYLGXDO 3RUWLRQ
FRPSULVHGRIKROGHUVRI1&'VZKRZHUHUHVLGHQW,QGLDQLQGLYLGXDOVDQG+8)VDSSO\LQJLQH[FHVVRI `ODNKVDFURVVDOO2SWLRQVRI1&'V
LL
1RQFRQYHUWLEOHGHEHQWXUHVLVVXHGWKURXJKSULYDWHSODFHPHQWV
6HW IRUWK EHORZ LV D EULHI VXPPDU\ RI RXU VHFXUHG QRQFRQYHUWLEOH GHEHQWXUHV LVVXHG RQ D SULYDWH SODFHPHQW
EDVLVDVRQ'HFHPEHU
` LQODNKV
'HEHQWXUH
6HULHV
7HQXUH
0DWXULW\
&RXSRQ
UDWH
5HGHPSWLRQ
GDWH
6FKHGXOH
0DUFK
'DWHRI
DOORWPHQW
$PRXQW
QRQ
FRQYHUWLEOH
GHEHQWXUHV RI
IDFH YDOXH DQG
LVVXH SULFH RI
`
,6,1
,1($
)LIW\IRXU
PRQWKV
QRQ
FRQYHUWLEOH
GHEHQWXUHV RI
IDFH YDOXH DQG
LVVXH SULFH RI
`
,6,1
,1($
)LYH\HDUV
QRQ
FRQYHUWLEOH
GHEHQWXUHV RI
IDFH YDOXH DQG
LVVXH SULFH RI
`
,6,1
,1($
)LYH\HDUV
6HSWHPEHU
µ&$5(
$$¶
IURP
&$5(
6HSWHPEHU
6HSWHPEHU
µ&$5(
$$¶
IURP
&$5(
2FWREHU
2FWREHU
µ&$5(
$$¶
IURP
&$5(
&UHGLW
UDWLQJ
6HFXULW\
)LUVW SDUL SDVVX
FKDUJH
RQ
UHFHLYDEOHV RI RXU
&RPSDQ\ ZLWK D
PLQLPXP
DVVHW
FRYHU RI WLPHV
DW DOO WLPH GXULQJ
WKH WHQXUH RI WKHVH
QRQFRQYHUWLEOH
GHEHQWXUHV
)LUVW SDUL SDVVX
FKDUJH
RQ
UHFHLYDEOHV RI RXU
&RPSDQ\ ZLWK D
PLQLPXP
DVVHW
FRYHU RI WLPHV
DW DOO WLPH GXULQJ
WKH WHQXUH RI WKHVH
QRQFRQYHUWLEOH
GHEHQWXUHV
)LUVW SDUL SDVVX
FKDUJH
RQ
UHFHLYDEOHV RI RXU
&RPSDQ\ ZLWK D
PLQLPXP
DVVHW
FRYHU RI WLPHV
DW DOO WLPH GXULQJ
WKH WHQXUH RI WKHVH
'HEHQWXUH
6HULHV
7HQXUH
0DWXULW\
&RXSRQ
UDWH
5HGHPSWLRQ
GDWH
6FKHGXOH
'DWHRI
DOORWPHQW
$PRXQW
QRQ
FRQYHUWLEOH
GHEHQWXUHV RI
IDFH YDOXH DQG
LVVXH SULFH RI
`
,6,1
,1($
)LIW\IRXU
PRQWKV
$SULO
2FWREHU
QRQ
FRQYHUWLEOH
GHEHQWXUHV RI
IDFH YDOXH DQG
LVVXH SULFH RI
`
,6,1
,1($
6HYHQ
\HDUV
1RYHPEHU
1RYHPEHU
QRQ
FRQYHUWLEOH
GHEHQWXUHV RI
IDFH YDOXH DQG
LVVXH SULFH RI
`
,6,1
,1($
6HYHQ
\HDUV
'HFHPEHU
'HFHPEHU
QRQ
FRQYHUWLEOH
GHEHQWXUHV RI
IDFH YDOXH DQG
LVVXH SULFH RI
`
,6,1
,1($
7HQ\HDUV
)HEUXDU\
)HEUXDU\
QRQ
FRQYHUWLEOH
GHEHQWXUHV RI
IDFH YDOXH DQG
LVVXH SULFH RI
`
,6,1
,1($
6L[\HDUV
SD
IRU WKH ILUVW
WZR \HDUV
DQG
VXEVHTXHQWO\
PRQWKV
,15 0,2,6
SD
0DUFK
0DUFK
=HURFRXSRQ
QRQFRQYHUWLEOH
GHEHQWXUHVRI
IDFHYDOXHDQG
LVVXHSULFHRI
`
,6,1
,1($
7ZR\HDUV
-DQXDU\
-DQXDU\
7KUHH
0D\
0D\
QRQ
&UHGLW
UDWLQJ
6HFXULW\
QRQFRQYHUWLEOH
GHEHQWXUHV
µ&$5(
)LUVW SDUL SDVVX
$$¶
FKDUJH
RQ
IURP
UHFHLYDEOHV RI RXU
&$5(
&RPSDQ\ ZLWK D
PLQLPXP
DVVHW
FRYHU RI WLPHV
DW DOO WLPH GXULQJ
WKH WHQXUH RI WKHVH
QRQFRQYHUWLEOH
GHEHQWXUHV
µ&$5(
)LUVW SDUL SDVVX
$$¶
FKDUJH
RQ
IURP
UHFHLYDEOHV RI RXU
&$5(
&RPSDQ\ ZLWK D
DQG
PLQLPXP
DVVHW
µ&5,6,/ FRYHU RI WLPHV
$$
DW DOO WLPH GXULQJ
6WDEOH¶
WKH WHQXUH RI WKHVH
IURP
QRQFRQYHUWLEOH
GHEHQWXUHV
&5,6,/
µ&$5(
)LUVW SDUL SDVVX
$$¶
FKDUJH
RQ
IURP
UHFHLYDEOHV RI RXU
&$5(
&RPSDQ\ ZLWK D
DQG µ,1' PLQLPXP
DVVHW
$$¶
FRYHU RI WLPHV
IURP
DW DOO WLPH GXULQJ
,553/
WKH WHQXUH RI WKHVH
QRQFRQYHUWLEOH
GHEHQWXUHV
µ&$5(
)LUVW SDUL SDVVX
$$¶
FKDUJH
RQ
IURP
UHFHLYDEOHV RI RXU
&$5(
&RPSDQ\ ZLWK D
DQG µ,1' PLQLPXP
DVVHW
$$¶
FRYHURIWLPHV
IURP
DW DOO WLPH GXULQJ
,553/
WKH WHQXUH RI WKHVH
QRQFRQYHUWLEOH
GHEHQWXUHV
µ,1'
)LUVW SDUL SDVVX
$$¶
FKDUJH
RQ
IURP
UHFHLYDEOHV RI RXU
,553/
&RPSDQ\ ZLWK D
PLQLPXP
DVVHW
FRYHU RI WLPHV
DW DOO WLPH GXULQJ
WKH WHQXUH RI WKHVH
QRQFRQYHUWLEOH
GHEHQWXUHV
µ&$5(
6SHFLILF
DQG
$$¶
H[FOXVLYH FKDUJH
IURP
RYHU UHFHLYDEOHV RI
&$5(
RXU &RPSDQ\ ZLWK
D PLQLPXP DVVHW
FRYHU RI WLPHV
DW DOO WLPH GXULQJ
WKH WHQXUH RI WKHVH
QRQFRQYHUWLEOH
GHEHQWXUHV
µ&$5(
6SHFLILF
DQG
'HEHQWXUH
6HULHV
7HQXUH
0DWXULW\
&RXSRQ
UDWH
5HGHPSWLRQ
GDWH
6FKHGXOH
FRQYHUWLEOH
GHEHQWXUHVRI
IDFHYDOXHDQG
LVVXHSULFHRI
`
,6,1
,1($
\HDUV
=HURFRXSRQ
QRQFRQYHUWLEOH
GHEHQWXUHVRI
IDFHYDOXHDQG
LVVXHSULFHRI
`
,6,1
,1($
7KUHH
\HDUV
'HFHPEHU
'HFHPEHU
=HURFRXSRQ
QRQFRQYHUWLEOH
GHEHQWXUHVRI
IDFHYDOXHDQG
LVVXHSULFHRI
`
,6,1
,1($
7KUHH
\HDUV
)HEUXDU\
)HEUXDU\
=HURFRXSRQ
QRQFRQYHUWLEOH
GHEHQWXUHVRI
IDFHYDOXHDQG
LVVXHSULFHRI
`
,6,1
,1($
7ZR\HDUV
)HEUXDU\
)HEUXDU\
QRQ
FRQYHUWLEOH
GHEHQWXUHVRI
IDFHYDOXHDQG
LVVXHSULFHRI
`
,6,1
,1($
)LYH\HDUV
-XO\
-XO\
QRQ
FRQYHUWLEOH
GHEHQWXUHV RI
IDFH YDOXH DQG
LVVXH SULFH RI
`
,6,1
,1($
)LYH\HDUV
-XO\
-XO\
=HURFRXSRQ
QRQFRQYHUWLEOH
GHEHQWXUHVRI
IDFHYDOXHDQG
LVVXHSULFHRI
\HDUV
-XQH
)HEUXDU\
$PRXQW
'DWHRI
DOORWPHQW
&UHGLW
UDWLQJ
6HFXULW\
$$¶ E\ H[FOXVLYH FKDUJH
&$5(
RYHU UHFHLYDEOHV RI
RXU &RPSDQ\ ZLWK
D PLQLPXP DVVHW
FRYHU RI WLPHV
DW DOO WLPH GXULQJ
WKH WHQXUH RI WKHVH
QRQFRQYHUWLEOH
GHEHQWXUHV
µ&$5(
6SHFLILF
DQG
$$¶ E\ H[FOXVLYH FKDUJH
&$5(
RYHU UHFHLYDEOHV RI
RXU &RPSDQ\ ZLWK
D PLQLPXP DVVHW
FRYHU RI WLPHV
DW DOO WLPH GXULQJ
WKH WHQXUH RI WKHVH
QRQFRQYHUWLEOH
GHEHQWXUHV
µ&$5(
6SHFLILF
DQG
$$¶ E\ H[FOXVLYH FKDUJH
&$5(
RYHU UHFHLYDEOHV RI
RXU &RPSDQ\ ZLWK
D PLQLPXP DVVHW
FRYHU RI WLPHV
DW DOO WLPH GXULQJ
WKH WHQXUH RI WKHVH
QRQFRQYHUWLEOH
GHEHQWXUHV
µ&$5(
6SHFLILF
DQG
$$¶ E\ H[FOXVLYH FKDUJH
&$5(
RYHU UHFHLYDEOHV RI
RXU &RPSDQ\ ZLWK
D PLQLPXP DVVHW
FRYHU RI WLPHV
DW DOO WLPH GXULQJ
WKH WHQXUH RI WKHVH
QRQFRQYHUWLEOH
GHEHQWXUHV
µ&$5(
6SHFLILF
DQG
$$¶ E\ H[FOXVLYH FKDUJH
&$5(
RYHU UHFHLYDEOHV RI
DQG µ,1' RXU &RPSDQ\ ZLWK
$$¶
D PLQLPXP DVVHW
IURP
FRYHU RI WLPHV
,553/
DW DOO WLPH GXULQJ
WKH WHQXUH RI WKHVH
QRQFRQYHUWLEOH
GHEHQWXUHV
µ&$5(
6SHFLILF
DQG
$$¶ E\ H[FOXVLYH FKDUJH
&$5(
RYHU UHFHLYDEOHV RI
DQG µ,1' RXU &RPSDQ\ ZLWK
$$¶ E\ D PLQLPXP DVVHW
,553/
FRYHU RI WLPHV
DW DOO WLPH GXULQJ
WKH WHQXUH RI WKHVH
QRQFRQYHUWLEOH
GHEHQWXUHV
µ&$5(
6SHFLILF
DQG
$$¶ E\ H[FOXVLYH FKDUJH
&$5(
RYHU UHFHLYDEOHV RI
RXU &RPSDQ\ ZLWK
D PLQLPXP DVVHW
'HEHQWXUH
6HULHV
7HQXUH
0DWXULW\
&RXSRQ
UDWH
5HGHPSWLRQ
GDWH
6FKHGXOH
'DWHRI
DOORWPHQW
$PRXQW
`
,6,1
,1($
&UHGLW
UDWLQJ
6HFXULW\
FRYHU RI WLPHV
DW DOO WLPH GXULQJ
WKH WHQXUH RI WKHVH
QRQFRQYHUWLEOH
GHEHQWXUHV
7KHKROGHUVRIWKHVHQRQFRQYHUWLEOHGHEHQWXUHVDUHQRWHQWLWOHGWRSHULRGLFLQWHUHVWSD\PHQWVEXWDUHHQWLWOHGWRUHFHLYHDQDPRXQWRI
`SHUQRQFRQYHUWLEOHGHEHQWXUHDWWKHWLPHRIUHGHPSWLRQ
7KHKROGHUVRIWKHVHQRQFRQYHUWLEOHGHEHQWXUHVDUHQRWHQWLWOHGWRSHULRGLFLQWHUHVWSD\PHQWV
7KHKROGHUVRIWKHVHQRQFRQYHUWLEOHGHEHQWXUHVDUHQRWHQWLWOHGWRSHULRGLFLQWHUHVWSD\PHQWVEXWDUHHQWLWOHGWRUHFHLYHDQDPRXQWRI
`SHUQRQFRQYHUWLEOHGHEHQWXUHDWWKHWLPHRIUHGHPSWLRQ
7KHKROGHUVRIWKHVHQRQFRQYHUWLEOHGHEHQWXUHVDUHQRWHQWLWOHGWRSHULRGLFLQWHUHVWSD\PHQWVEXWDUHHQWLWOHGWRUHFHLYHDQDPRXQWRI
`SHUQRQFRQYHUWLEOHGHEHQWXUHDWWKHWLPHRIUHGHPSWLRQ
7KHKROGHUVRIWKHVHQRQFRQYHUWLEOHGHEHQWXUHVDUHQRWHQWLWOHGWRSHULRGLFLQWHUHVWSD\PHQWVEXWDUHHQWLWOHGWRUHFHLYHDQDPRXQWRI
`SHUQRQFRQYHUWLEOHGHEHQWXUHDWWKHWLPHRIUHGHPSWLRQ
$VRQWKHGDWHRIWKLV3URVSHFWXVWKHVHGHEHQWXUHVKDYHEHHQUHGHHPHG
LLL
5HWDLOQRQFRQYHUWLEOHGHEHQWXUHVLVVXHGRQDSULYDWHSODFHPHQWEDVLV
2XU &RPSDQ\ KDV LVVXHG VHFXUHG UHGHHPDEOH QRQFRQYHUWLEOH GHEHQWXUHV RI IDFH YDOXH RI ` ³5HWDLO
1&'V´ WR UHWDLO VXEVFULEHUV RQ D SULYDWH SODFHPHQW EDVLV 7KHVH 5HWDLO 1&'V KDYH EHHQ DOORWWHG RQ D
FRQWLQXLQJEDVLVDQGWKHWHUPVRIFRQGLWLRQVRIWKHVH5HWDLO1&'VZKHQLVVXHGLQFOXGLQJFRXSRQUDWHVKDYH
EHHQ GHFLGHG E\ WKH %DQNLQJ )LQDQFH &RPPLWWHH RI RXU %RDUG RI 'LUHFWRUV 6HW IRUWK EHORZ LV D EULHI
VXPPDU\RIRXU5HWDLO1&'VDVRQ'HFHPEHU
` LQODNKV
0DWXULQJLQ
&RXSRQUDWH
±PRQWKV
±SD
±SD
±SD
$ERYHSD
±SD
±SD
±SD
$ERYHSD
±SD
±SD
±SD
$ERYHSD
±SD
±SD
±SD
$ERYHSD
±SD
±SD
±SD
$ERYHSD
±PRQWKV
±PRQWKV
±PRQWKV
/HVVWKDQPRQWKV
5HGHPSWLRQ
'DWHRI
GDWH
DOORWPHQW
6FKHGXOH
%HWZHHQ WR $SULO PRQWKV ± $XJXVW IURP
WKH DOORWPHQWGDWH
%HWZHHQ WR
PRQWKV
IURP
WKH
DOORWPHQWGDWH
%HWZHHQ WR
PRQWKV
IURP
WKH
DOORWPHQWGDWH
%HWZHHQ WR
PRQWKV
IURP
WKH
DOORWPHQWGDWH
/HVV WKDQ PRQWKV IURP
WKH DOORWPHQW
GDWH
$PRXQW
6HFXULW\
0RUWJDJH
RYHU
LGHQWLILHG LPPRYDEOH
SURSHUW\ RZQHG E\ RXU
&RPSDQ\
+\SRWKHFDWLRQ
RYHU
LQGHQWLILHG
KLUH
SXUFKDVH ORDQV RI RXU
&RPSDQ\
LQFOXGLQJ
ERRNGHEWV
DQG
UHFHLYDEOHV
WKHUHRQ
ERWKSUHVHQWDQGIXWXUH
,,
8QVHFXUHGERUURZLQJVDYDLOHGE\RXU&RPSDQ\
$
)L[HGGHSRVLWV
$VDQGHSRVLWWDNLQJQRQEDQNLQJILQDQFLDOFRPSDQ\RXU&RPSDQ\DFFHSWVERWKQRQFXPXODWLYHDQGFXPXODWLYH
XQVHFXUHG GHSRVLWV IURP WKH SXEOLF ³6&8) 'HSRVLWV´ ZKLFK DUH DFFHSWHG LQ PXOWLSOHV RI ` ZLWK D
PLQLPXPGHSRVLWDPRXQWRI `SHUFXPXODWLYHGHSRVLWDFFRXQWDQG`SHUQRQFXPXODWLYHGHSRVLW
DFFRXQWDWLQWHUHVWUDWHVUDQJLQJIURPSDWRSDZLWKDQDGGLWLRQDOLQWHUHVWUDWHRISDIRU
VHQLRUFLWL]HQVZKRKDYHFRPSOHWHG\HDUVRIDJHRQWKHGDWHRIPDNLQJWKHGHSRVLWDQGDUHUHGHHPDEOHIURP
D SHULRG RI PRQWKV WR PRQWKV IURP WKH GDWH RI WKH GHSRVLW 6HW IRUWK EHORZ LV D EULHI VXPPDU\ RI WKH
6&8)'HSRVLWVDVRQ'HFHPEHU
7\SHRI
LQVWUXPHQW
)L[HGGHSRVLWV
$PRXQW
LVVXHG
3ULQFLSDODPRXQW
RXWVWDQGLQJ
5HSD\PHQWGDWHVFKHGXOH
` LQODNKV
&UHGLWUDWLQJ
±PRQWKVIURPWKHGDWHRI µ)$$ 67$%/(¶ E\ &5,6,/
WKHGHSRVLWUHQHZDO
µ&$5($$)'¶IURP&$5(
DQGµ,1'W$$¶IURP,553/
%
6XERUGLQDWHGGHEHQWXUHV
6HWIRUWKEHORZLVDEULHIVXPPDU\RIRXUXQVHFXUHGVXERUGLQDWHGGHEHQWXUHVDVRQ'HFHPEHU
L
/LVWHGVXERUGLQDWHGGHEHQWXUHV
6HWIRUWKEHORZLVDEULHIVXPPDU\RIRXUOLVWHGXQVHFXUHGVXERUGLQDWHGGHEHQWXUHVDVRQ'HFHPEHU
` LQODNKV
'HEHQWXUH6HULHV
QRQ
FRQYHUWLEOH
GHEHQWXUHV RI IDFH
YDOXH DQG LVVXH
SULFHRI`
,6,1
,1($
QRQ
FRQYHUWLEOH
GHEHQWXUHV RI IDFH
YDOXH DQG LVVXH
SULFHRI`
,6,1
,1($
QRQ
FRQYHUWLEOH
GHEHQWXUHV RI IDFH
YDOXH DQG LVVXH
SULFHRI`
,6,1
,1($
QRQ
FRQYHUWLEOH
GHEHQWXUHV RI IDFH
YDOXH DQG LVVXH
SULFHRI`
,6,1
,1($
QRQ
FRQYHUWLEOH
GHEHQWXUHV RI IDFH
YDOXH DQG LVVXH
SULFHRI`
,6,1
,1($
QRQ
FRQYHUWLEOH
GHEHQWXUHV RI IDFH
YDOXH DQG LVVXH
SULFHRI`
,6,1
,1($
QRQ
FRQYHUWLEOH
GHEHQWXUHV RI IDFH
YDOXH DQG LVVXH
SULFH
RI
7HQXUH
0DWXULW\
6HYHQ\HDUV
&RXSRQUDWH
5HGHPSWLRQ
GDWH6FKHGXOH
0DUFK
'DWHRI
DOORWPHQW
0DUFK
$PRXQW
6HYHQ\HDUV
-DQXDU\
-DQXDU\
µ&$5(
$$¶
E\
&$5(
PRQWKV
$XJXVW
)HEUXDU\
µ&$5(
$$¶
E\
&$5(
6HYHQ\HDUV
)HEUXDU\
)HEUXDU\
µ&$5(
$$¶
E\
&$5(
PRQWKV
6HSWHPEHU
0DUFK
µ&$5(
$$¶
E\
&$5(
6HYHQ\HDUV
0DUFK
0DUFK
µ&$5(
$$¶
E\
&$5(
6HYHQ\HDUV
'HFHPEHU
'HFHPEHU
µ&$5(
$$¶
E\
&$5(
&UHGLW
UDWLQJ
µ&$5(
$$¶
E\
&$5(
'HEHQWXUH6HULHV
`
,6,1
,1($
QRQ
FRQYHUWLEOH
GHEHQWXUHV RI IDFH
YDOXH DQG LVVXH
SULFH
RI
`
,6,1
,1($
7HQXUH
0DWXULW\
&RXSRQUDWH
5HGHPSWLRQ
GDWH6FKHGXOH
'DWHRI
DOORWPHQW
$PRXQW
&UHGLW
UDWLQJ
6HYHQ\HDUV
-DQXDU\
-DQXDU\
µ&$5(
$$¶
E\
&$5(
LL 8QOLVWHGVXERUGLQDWHGGHEHQWXUHV
2XU&RPSDQ\KDVLVVXHGXQVHFXUHGVXERUGLQDWHGQRQFRQYHUWLEOHGHEHQWXUHVRIIDFHYDOXHRI`³5HWDLO
6XERUGLQDWHG 'HEHQWXUHV´ WR UHWDLO VXEVFULEHUV RQ D SULYDWH SODFHPHQW EDVLV 7KH 5HWDLO 6XERUGLQDWHG
'HEHQWXUHV KDYH EHHQ DOORWWHG RQ D FRQWLQXLQJ EDVLV IURP D WHQXUH UDQJLQJ IURP WR PRQWKV DW LQWHUHVW
UDWHVRISDZLWKDGGLWLRQDOLQWHUHVWUDWHRISDIRUVHQLRUFLWL]HQVZKRKDYHFRPSOHWHG\HDUV
RIDJHRQWKHGDWHRIVXEVFULELQJWRWKH5HWDLO6XERUGLQDWHG'HEHQWXUHV6HWIRUWKEHORZLVDEULHIVXPPDU\RI
RXU5HWDLO6XERUGLQDWHG'HEHQWXUHVDVRQ'HFHPEHU
` LQODNKV
7\SHRI
LQVWUXPHQW
5HWDLO
6XERUGLQDWHG
'HEHQWXUHV
$PRXQW
LVVXHG
3ULQFLSDODPRXQW
RXWVWDQGLQJ
5HSD\PHQWGDWHVFKHGXOH
&UHGLWUDWLQJ
7HQXUH RI PRQWKV RU µ&$5( $$¶ IURP &$5( DQG
PRQWKV
µ&5,6,/ $$67$%/(¶ IURP
&5,6,/
,,, 6LJQLILFDQWUHVWULFWLYHFRYHQDQWVLQRXUGHEWIDFLOLWLHV
6RPHRIWKHVLJQLILFDQWFRUSRUDWHDFWLRQVIRUZKLFKRXU&RPSDQ\UHTXLUHVWKHSULRUZULWWHQFRQVHQWRIOHQGHUV
LQFOXGHWKHIROORZLQJ
WR GHFODUH DQG RU SD\ GLYLGHQG WR DQ\ RI LWV VKDUHKROGHUV ZKHWKHU HTXLW\ RU SUHIHUHQFH GXULQJ DQ\
ILQDQFLDO \HDU XQOHVV RXU &RPSDQ\ KDV SDLG WR WKH OHQGHU WKH GXHV SD\DEOH E\ RXU &RPSDQ\ LQ WKDW
\HDU
WR XQGHUWDNH RU SHUPLW DQ\ PHUJHU DPDOJDPDWLRQ RU FRPSURPLVH ZLWK LWV VKDUHKROGHUV FUHGLWRUV RU
HIIHFWDQ\VFKHPHRIDPDOJDPDWLRQRUUHFRQVWUXFWLRQ
WRFUHDWHRUSHUPLWDQ\FKDUJHVRUOLHQRQDQ\PRUWJDJHGRUK\SRWKHFDWHGSURSHUWLHV
WRDPHQGLWV02$DQG$2$RUDOWHULWVFDSLWDOVWUXFWXUHDQG
WRPDNHDQ\PDMRULQYHVWPHQWVE\ZD\RIGHSRVLWVORDQVVKDUHFDSLWDOHWFLQDQ\PDQQHU
,9 7RSWHQKROGHUVRIGHEWLQVWUXPHQWV
6HWIRUWKEHORZDUHRXUGHWDLOVRIRXUWRSWHQKROGHUVRIGHEWLQVWUXPHQWVDVRQ'HFHPEHU
6QR
1DPHRIKROGHU
1HGHUODQGVH )LQDQFLHULQJV0DDWVFKDSSLM 9RRU 2QWZLNNHOLQJVODQGHQ 19
)02
+')&7UXVWHH&RPSDQ\/LPLWHG$&+LJK,QWHUHVW)XQG6KRUW7HUP3ODQ
-30RUJDQ,QGLD)L[HG0DWXULW\3ODQ±6HULHV
'HQD%DQN(PSOR\HH3HQVLRQ)XQG
+')&7UXVWHH&RPSDQ\/LPLWHG$&+')&)0301RY
8QLWHG%DQNRI,QGLD
%DQNRI0DKDUDVKWUD
8QLWHG,QGLD,QVXUDQFH&RPSDQ\/LPLWHG
%DQNRI0DKDUDVKWUD$&
.RWDN0DKLQGUD7UXVWHH&RPSDQ\/LPLWHG$&
`LQODNKV
$PRXQWRIGHEWVHFXULWLHVKHOG
OUTSTANDING LITIGATION AND MATERIAL DEVELOPMENTS
2XU &RPSDQ\ LVLQYROYHGLQ OHJDOSURFHHGLQJV ZKLFKKDYHDULVHQLQWKHRUGLQDU\FRXUVHRIEXVLQHVV6DYHDV
VWDWHG KHUHLQEHORZ VXFK SURFHHGLQJV KRZHYHU DUH QRW PDWHULDO HQRXJK WR DGYHUVHO\ DIIHFW RXU RSHUDWLRQV
ILQDQFLDOSRVLWLRQDQGSURILWDELOLW\
([FHSWDVGHVFULEHGEHORZWKHUHDUHQRFULPLQDOSURVHFXWLRQVWD[SURFHHGLQJVDQGRWKHURXWVWDQGLQJOLWLJDWLRQV
DJDLQVWRXU&RPSDQ\WKDWPD\KDYHDPDWHULDODGYHUVHHIIHFWRQRXUEXVLQHVVDQGWKHUHDUHQRSHQGLQJFULPLQDO
SURVHFXWLRQVODXQFKHGDJDLQVWRXU'LUHFWRUV
2XU&RPSDQ\KDVSUHIHUUHGDQDSSHDOEHIRUHWKH&RPPLVVLRQHURI,QFRPHWD[$SSHDOVDJDLQVWWKHRUGHU
RIWKH$VVHVVLQJ2IILFHUGDWHG0DUFKZKHUHLQLQWHUDOLDWKH$VVHVVLQJ2IILFHUKDVGLVDOORZHGWKH
DPRXQW WUDQVIHUUHG WR VWDWXWRU\ UHVHUYH IXQG RI ` LQ FRPSOLDQFH ZLWK WKH SURYLVLRQV RI WKH
6HFWLRQ ,& RI WKH 5HVHUYH %DQN RI ,QGLD $FW IRU WKH DVVHVVPHQW \HDU XQGHU QRUPDO
FRPSXWDWLRQ DQG ` XQGHU FRPSXWDWLRQ XQGHU 6HFWLRQ -%RI WKH ,QFRPH 7D[ $FW 7KH$2KDVDOVRDGGHG3URYLVLRQIRU%DG'HEWV`UR\DOW\RI`(623FRVWRI`
GLVDOORZDQFH RI LQWHUHVW XV ' ` DQG 6 DLD GLVDOORZDQFH RI `
DQGUDLVHGDGHPDQGRI `IRUDVVHVVPHQW\HDU7KHVHSURFHHGLQJVDUH
SHQGLQJKHDULQJDQGILQDOGLVSRVDO
2XU&RPSDQ\KDVSUHIHUUHGDQDSSHDOEHIRUHWKH+RQ¶EOH+LJK&RXUWRI0DGUDVDJDLQVWWKHRUGHURIWKH
,QFRPH 7D[ $SSHOODWH 7ULEXQDO ³,7$7´ GDWHG $SULO ZKHUHLQ LQWHU DOLD LW KDG FRQILUPHG WKH
GLVDOORZDQFHRIWKHDPRXQWWUDQVIHUUHGWRWKHVWDWXWRU\UHVHUYHIXQGRI`LQFRPSOLDQFHZLWK
WKHSURYLVLRQVRIWKH6HFWLRQ,&RIWKH5HVHUYH%DQNRI,QGLD$FWIRUWKHDVVHVVPHQW\HDU
XQGHUQRUPDOFRPSXWDWLRQDQG`XQGHUFRPSXWDWLRQXQGHU6HFWLRQ-%RIWKH,QFRPH7D[
$FW7KHDSSHDOKDVEHHQUDLVHGRQWKHJURXQGVWKDWWKHRUGHURI,7$7LQFRQILUPLQJWKHDGGLWLRQ
ERWKXQGHU5HJXODU&RPSXWDWLRQDQGXQGHU6HFWLRQ-%RIWKH,QFRPH7D[$FWLVHUURQHRXV7KH
DSSHDOLVSHQGLQJKHDULQJDQGILQDOGLVSRVDO
0DWHULDOGHYHORSPHQWVSRVW6HSWHPEHU
([FHSW DV GLVFORVHG EHORZ WKHUH KDYH EHHQ QR PDWHULDO GHYHORSPHQWV RI RXU &RPSDQ\ DIWHU 6HSWHPEHU LHWKHGDWHRIWKHODVWDXGLWHGILQDQFLDOVWDWHPHQWVRIWKH&RPSDQ\
7KH(623$OORWPHQW&RPPLWWHHRIRXU%RDUGRI'LUHFWRUVRQ1RYHPEHULVVXHGDQGDOORWWHG
(TXLW\6KDUHVXSRQWKHH[HUFLVHRIRSWLRQVE\FHUWDLQKROGHUVRIVWRFNRSWLRQVXQGHU(623
DWDSUHPLXPRI`SHU(TXLW\6KDUH3XUVXDQWWRWKLVDOORWPHQWWKHVXEVFULEHG(TXLW\6KDUH
FDSLWDORIWKH&RPSDQ\ZDV`GLYLGHGLQWR(TXLW\6KDUHV
7KH(623$OORWPHQW&RPPLWWHHRIRXU%RDUGRI'LUHFWRUVRQ-DQXDU\ LVVXHGDQGDOORWWHG
(TXLW\6KDUHVXSRQWKHH[HUFLVHRIRSWLRQVFHUWDLQKROGHUVRIVWRFNRSWLRQV XQGHU(623
DWDSUHPLXPRI`SHU(TuLW\6KDUH3XUVXDQWWRWKLVDOORWPHQWWKHVXEVFULEHG(TXLW\6KDUH
FDSLWDORIWKH&RPSDQ\ZDV`GLYLGHGLQWR(TXLW\6KDUHV
7KH 'HEW ,VVXDQFH &RPPLWWHH RI RXU &RPSDQ\ RQ -DQXDU\ LVVXHG DQG DOORWWHG VHFXUHG UHGHHPDEOH QRQFRQYHUWLEOH GHEHQWXUHV RI IDFH YDOXH RI ` HDFK ³-DQXDU\ 1&'V´ DW D SULFH RI ` SHU -DQXDU\ 1&' SXUVXDQW WR D SXEOLF LVVXH RI VHFXUHG QRQ
FRQYHUWLEOHGHEHQWXUHV 7KH -DQXDU\ 1&'VDUH OLVWHGRQWKH16(DQG%6()RU IXUWKHUGHWDLOV
SOHDVHVHH³2WKHU5HJXODWRU\DQG6WDWXWRU\'LVFORVXUHV 3UHYLRXV3XEOLF,VVXHVE\RXU&RPSDQ\DQG
RWKHUOLVWHGFRPSDQLHVXQGHUWKHVDPHPDQDJHPHQWZLWKLQWKHPHDQLQJRIVHFWLRQ%GXULQJODVW
ILYH\HDUV´DWSDJH
2XU &RPSDQ\ KDV LQ DFFRUGDQFH ZLWK WKH (TXLW\ /LVWLQJ $JUHHPHQW RQ
-DQXDU\ILOHGZLWKWKH6WRFN([FKDQJHVXQDXGLWHGILQDQFLDOLQIRUPDWLRQRIWKH&RPSDQ\IRU
WKH QLQH PRQWKV HQGHG 'HFHPEHU VXEMHFW WR OLPLWHG UHYLHZ E\ LWV VWDWXWRU\ DXGLWRUV 6XFK
ILQDQFLDO LQIRUPDWLRQ LV DYDLODEOH RQ WKH ZHEVLWHV RI WKH %6( DQG 16( DW ZZZEVHLQGLDFRP DQG
ZZZQVHLQGLDFRPUHVSHFWLYHO\
OTHER REGULATORY AND STATUTORY DISCLOSURES
$XWKRULW\IRUWKH,VVXH
7KH ,VVXH LV EHLQJ PDGH SXUVXDQW WR WKH UHVROXWLRQ SDVVHG E\ WKH %RDUG RQ -XO\ DQG WKH UHVROXWLRQ
DSSURYHGE\WKH6HFXULWLHV0DQDJHPHQW&RPPLWWHHDWLWVPHHWLQJKHOGRQ0DUFK
3XUVXDQWWRUHVROXWLRQSDVVHGE\WKHVKDUHKROGHUVRIRXU&RPSDQ\DWWKHLU$*0KHOGRQ-XO\DQGLQ
DFFRUGDQFHZLWKSURYLVLRQVRI6HFWLRQGRIWKH&RPSDQLHV$FWWKH%RDUGKDVEHHQDXWKRULVHGWR
ERUURZVXPVRIPRQH\DVWKH\PD\GHHPQHFHVVDU\IRUWKHSXUSRVHRIWKHEXVLQHVVRIRXU&RPSDQ\XSRQVXFK
WHUPVDQGFRQGLWLRQVDQGZLWKRUZLWKRXWVHFXULW\DVWKH%RDUGRI'LUHFWRUVPD\WKLQNILWSURYLGHGWKDWPRQH\
RUPRQLHVWREHERUURZHGWRJHWKHUZLWKWKHPRQLHVDOUHDG\ERUURZHGE\RXU&RPSDQ\DSDUWIURPWHPSRUDU\
ORDQVREWDLQHGDQGRUWREHREWDLQHGIURPWKH&RPSDQ\¶VEDQNHUVLQWKHRUGLQDU\FRXUVHRIEXVLQHVVVKDOOQRW
H[FHHG`ODNKV
(OLJLELOLW\WRPDNHWKH,VVXH
2XU&RPSDQ\WKHSHUVRQVLQFRQWURORIRXU&RPSDQ\RUWKHSURPRWHUKDYHQRWEHHQUHVWUDLQHGSURKLELWHGRU
GHEDUUHGE\6(%,IURPDFFHVVLQJWKHVHFXULWLHVPDUNHWRUGHDOLQJLQVHFXULWLHVDQGQRVXFKRUGHURUGLUHFWLRQLV
LQIRUFH
&RQVHQWV
&RQVHQWVLQZULWLQJRIWKH'LUHFWRUVWKH&RPSOLDQFH2IILFHUWKH6WDWXWRU\$XGLWRUV%DQNHUVWRWKH&RPSDQ\
(VFURZ &ROOHFWLRQ %DQNV %DQNHUV WR WKH ,VVXH /HDG 0DQDJHUV /HDG %URNHUV 5HJLVWUDU WR WKH ,VVXH /HJDO
&RXQVHO WR WKH &RPSDQ\ DV WR ,QGLDQ ODZ &UHGLW 5DWLQJ $JHQFLHV DQG WKH 'HEHQWXUH 7UXVWHH IRU WKH 1&'
+ROGHUV WR DFW LQ WKHLU UHVSHFWLYH FDSDFLWLHV KDYH EHHQ REWDLQHG DQG VKDOO EH ILOHG DORQJ ZLWK D FRS\ RI WKLV
3URVSHFWXVZLWKWKH5R&
2XU &RPSDQ\ KDV DSSRLQWHG *'$ 7UXVWHHVKLS DV 'HEHQWXUH 7UXVWHH XQGHU UHJXODWLRQ RI WKH 6(%, 'HEW
5HJXODWLRQV7KH'HEHQWXUH7UXVWHHKDVJLYHQLWVFRQVHQWWRRXU&RPSDQ\IRULWVDSSRLQWPHQWZKLFKLVHQFORVHG
DV$QQH[XUH&
([SHUW2SLQLRQ
([FHSWIRUWKHOHWWHUVGDWHG0DUFKLVVXHGE\&$5(LQUHVSHFWRIWKHFUHGLWUDWLQJIRUWKH1&'VDQGWKH
UHSRUWRQ5HIRUPDWWHG$XGLWHG)LQDQFLDO6WDWHPHQWVGDWHG2FWREHUDQGWKHVWDWHPHQWRIWD[EHQHILWV
GDWHG0DUFKLVVXHGE\RXU6WDWXWRU\$XGLWRUVRXU&RPSDQ\KDVQRWREWDLQHGDQ\H[SHUWRSLQLRQVLQ
UHVSHFWRIWKH,VVXH
&RPPRQ)RUPRI7UDQVIHU
7KHUH VKDOOEH D FRPPRQIRUPRIWUDQVIHU IRUWKH 1&'V KHOGLQSK\VLFDO IRUPDQGUHOHYDQWSURYLVLRQVRIWKH
&RPSDQLHV$FWDQGWKH&RPSDQLHV$FWWRWKHH[WHQWDSSOLFDEOHDQGDOORWKHUDSSOLFDEOHODZVVKDOO
EHGXO\FRPSOLHGZLWKLQUHVSHFWRIDOOWUDQVIHURIWKH1&'VDQGUHJLVWUDWLRQWKHUHRI
0LQLPXP6XEVFULSWLRQ
8QGHUWKH6(%,'HEW5HJXODWLRQVRXU&RPSDQ\PD\VWLSXODWHDPLQLPXPVXEVFULSWLRQDPRXQWZKLFKLWVHHNV
WR UDLVH ,I RXU &RPSDQ\ GRHV QRW UHFHLYH WKH PLQLPXP VXEVFULSWLRQ RI RI WKH %DVH ,VVXH LH ` ODNKVRQWKH GDWH RIFORVXUH RIWKH ,VVXHWKH HQWLUH $SSOLFDWLRQ $PRXQWVVKDOOEH UHIXQGHGWRWKH $SSOLFDQWV
ZLWKLQWKHWLPHSUHVFULEHGXQGHUDSSOLFDEOHVWDWXWRU\UHJXODWRU\UHTXLUHPHQWV,IWKHUHLVGHOD\LQWKHUHIXQGRI
$SSOLFDWLRQ $PRXQWV EH\RQG WKH SHUPLVVLEOH WLPH SHULRG DV PD\ EH SUHVFULEHG E\ DSSOLFDEOH VWDWXWRU\
UHJXODWRU\UHTXLUHPHQWVIRURXU&RPSDQ\WRUHIXQGWKH$SSOLFDWLRQ$PRXQWVRXU&RPSDQ\ZLOOSD\LQWHUHVWIRU
WKHGHOD\HGSHULRGDWUDWHVSUHVFULEHGXQGHUVXFKDSSOLFDEOHVWDWXWRU\DQGRUUHJXODWRU\UHTXLUHPHQWV
3UHYLRXV3XEOLF,VVXHVE\RXU&RPSDQ\DQGRWKHUOLVWHGFRPSDQLHVXQGHUWKHVDPHPDQDJHPHQWZLWKLQ
WKHPHDQLQJRIVHFWLRQ%GXULQJODVWILYH\HDUV 7KHUH DUH QR OLVWHG FRPSDQLHV XQGHU WKH VDPH PDQDJHPHQW ZLWKLQ WKH PHDQLQJ RI 6HFWLRQ % RI WKH
&RPSDQLHV$FW6HWIRUWKEHORZDUHWKHGHWDLOVRISXEOLFLVVXHVE\RXU&RPSDQ\GXULQJWKHODVWILYH\HDUV
<HDU
RI
LVVXH
'HWDLOVRIWKH
LVVXH
3XEOLF LVVXH RI
XSWR VHFXUHG QRQ
FRQYHUWLEOH
GHEHQWXUHV RI
IDFH YDOXH RI `
HDFK
³ %RQGV
,VVXH´
3XEOLF LVVXH RI
XSWR VHFXUHG QRQ
FRQYHUWLEOH
GHEHQWXUHV RI
IDFH YDOXH RI `
HDFK
³ %RQGV
,VVXH´
3XEOLF LVVXH RI
XSWR -DQXDU\ 1&'V
³-DQXDU\
%RQGV
,VVXH´
'DWHRI
FORVXUHRI
LVVXH
$XJXVW
'DWHRI
DOORWPHQW
$XJXVW
'DWHUHIXQGV
5DWHRI
GLYLGHQG
SDLG
'DWHRI
OLVWLQJRQWKH
VWRFN
H[FKDQJH
$XJXVW
16(
6HSWHPEHU
%6(
6HSWHPEHU
$PRXQWRI
SUHPLXPGLV
FRXQWDW
ZKLFKWKH
VHFXULWLHVDUH
DOORWWHGLI
DQ\
6HSWHPEHU
2FWREHU
2FWREHU
16(
2FWREHU
%6(
2FWREHU
'HFHPEHU
-DQXDU\
-DQXDU\
16(-DQXDU\
%6(-DQXDU\
&RPPLVVLRQRU%URNHUDJHRQ3UHYLRXV3XEOLF,VVXHV
$Q DPRXQW RI ` ODNKV ZDV LQFXUUHG WRZDUGV OHDG PDQDJHPHQW IHHV DQG VHOOLQJ FRPPLVVLRQ LQ
FRQQHFWLRQZLWKWKH%RQGV,VVXH
$Q DPRXQW RI ` ODNKV ZDV LQFXUUHG WRZDUGV OHDG PDQDJHPHQW IHHV DQG VHOOLQJ FRPPLVVLRQ LQ
FRQQHFWLRQZLWKWKH%RQGV,VVXH
$Q DPRXQW RI ` ODNKV ZDV LQFXUUHG WRZDUGV OHDG PDQDJHPHQW IHHV DQG VHOOLQJ FRPPLVVLRQ LQ
FRQQHFWLRQZLWKWKH-DQXDU\%RQGV,VVXH
&KDQJHLQDXGLWRUVRIRXU&RPSDQ\GXULQJWKHODVWWKUHH\HDUV
7KHUHKDVEHHQQRFKDQJHVLQWKHVWDWXWRU\DXGLWRURIRXU&RPSDQ\LQWKHODVWWKUHHILQDQFLDO\HDUVSUHFHGLQJ
WKHGDWHRIWKLV3URVSHFWXV
5HYDOXDWLRQRIDVVHWV
2XU&RPSDQ\KDVQRWUHYDOXHGLWVDVVHWVLQWKHODVWILYH\HDUV
8WLOLVDWLRQRI3URFHHGV
7KHIXQGVSURSRVHGWREHUDLVHGWKURXJKWKH,VVXHVKDOOEHXWLOL]HGWRZDUGV OHQGLQJDQGLQYHVWPHQWVWRUHSD\
RXU H[LVWLQJ OLDELOLWLHV RU ORDQV DQG WRZDUGV RXU EXVLQHVV RSHUDWLRQV LQFOXGLQJ IRU RXU FDSLWDO H[SHQGLWXUH DQG
ZRUNLQJFDSLWDOUHTXLUHPHQWVDQGJHQHUDOFRUSRUDWHSXUSRVHV)RUPRUHLQIRUPDWLRQSHUWDLQLQJWRXWLOLVDWLRQRI
SURFHHGVSOHDVHVHHVHFWLRQWLWOHG³2EMHFWVRIWKH,VVXH´RQSDJH
6WDWHPHQWE\WKH%RDUGRI'LUHFWRUV
L $OO PRQLHV UHFHLYHG RXW RI WKH ,VVXH RI WKH 1&'V WR WKH SXEOLF VKDOO EH WUDQVIHUUHG WR D VHSDUDWH EDQN
DFFRXQWRWKHUWKDQWKHEDQNDFFRXQWUHIHUUHGWRLQVHFWLRQRIWKH&RPSDQLHV$FW
LL 'HWDLOV RI DOO PRQLHV XWLOLVHG RXW RI WKH ,VVXH UHIHUUHG WR LQ VXELWHP L VKDOO EH GLVFORVHG XQGHU DQ
DSSURSULDWH VHSDUDWH KHDG LQ RXU %DODQFH 6KHHW LQGLFDWLQJ WKH SXUSRVH IRU ZKLFK VXFK PRQLHV ZHUH
XWLOLVHGDQG
LLL 'HWDLOVRIDOOXQXWLOLVHGPRQLHVRXWRIWKH,VVXHUHIHUUHGWRLQVXELWHPLLIDQ\VKDOOEHGLVFORVHGXQGHU
DQ DSSURSULDWH VHSDUDWH KHDG LQ RXU %DODQFH 6KHHW LQGLFDWLQJ WKH IRUP LQ ZKLFK VXFK XQXWLOLVHG PRQLHV
KDYHEHHQLQYHVWHG
7KH IXQGV UDLVHG E\ XV IURP SUHYLRXV LVVXHV RI ERQGV KDYH EHHQ XWLOLVHG IRU RXU EXVLQHVV DV VWDWHG LQ WKH
UHVSHFWLYHRIIHUGRFXPHQWV
'LVFODLPHUFODXVHRI%6(
%6(/LPLWHG³([FKDQJH´KDVJLYHQYLGHLWVOHWWHUGDWHG0DUFKSHUPLVVLRQWRWKLV&RPSDQ\WRXVH
WKH([FKDQJH¶VQDPHLQWKLVRIIHUGRFXPHQWDVRQHRIWKHVWRFNH[FKDQJHVRQZKLFKWKLV&RPSDQ\¶VVHFXULWLHV
DUHSURSRVHGWREHOLVWHG7KH([FKDQJHKDVVFUXWLQL]HGWKLVRIIHUGRFXPHQWIRULWVOLPLWHGLQWHUQDOSXUSRVHRI
GHFLGLQJ RQ WKH PDWWHU RI JUDQWLQJ WKH DIRUHVDLG SHUPLVVLRQ WR WKLV &RPSDQ\ 7KH ([FKDQJH GRHV QRW LQ DQ\
PDQQHU
DZDUUDQWFHUWLI\RUHQGRUVHWKHFRUUHFWQHVVRUFRPSOHWHQHVVRIDQ\RIWKHFRQWHQWVRIWKLVRIIHUGRFXPHQWRU
EZDUUDQWWKDWWKLV&RPSDQ\¶VVHFXULWLHVZLOOEHOLVWHGRUZLOOFRQWLQXHWREHOLVWHGRQWKH%6(RU
FWDNHDQ\UHVSRQVLELOLW\IRUWKHILQDQFLDORURWKHUVRXQGQHVVRIWKLV&RPSDQ\LWVSURPRWHUVLWVPDQDJHPHQWRU
DQ\VFKHPHRUSURMHFWRIWKLV&RPSDQ\
DQGLWVKRXOGQRWIRUDQ\UHDVRQEHGHHPHGRUFRQVWUXHGWKDWWKLVRIIHUGRFXPHQWKDVEHHQFOHDUHGRUDSSURYHG
E\WKH([FKDQJH(YHU\SHUVRQZKRGHVLUHVWRDSSO\IRURURWKHUZLVHDFTXLUHVDQ\VHFXULWLHVRIWKLV&RPSDQ\
PD\GRVRSXUVXDQWWRLQGHSHQGHQWLQTXLU\LQYHVWLJDWLRQDQGDQDO\VLVDQGVKDOOQRWKDYHDQ\FODLPDJDLQVWWKH
([FKDQJH ZKDWVRHYHU E\ UHDVRQ RI DQ\ ORVV ZKLFK PD\ EH VXIIHUHG E\ VXFK SHUVRQ FRQVHTXHQW WR RU LQ
FRQQHFWLRQ ZLWK VXFK VXEVFULSWLRQDFTXLVLWLRQ ZKHWKHU E\ UHDVRQ RI DQ\WKLQJ VWDWHG RU RPLWWHG WR EH VWDWHG
KHUHLQRUIRUDQ\RWKHUUHDVRQZKDWVRHYHU
'LVFODLPHULQ5HVSHFWRI-XULVGLFWLRQ
7KH ,VVXH LV EHLQJ PDGH LQ ,QGLD WR ,QYHVWRUV IURP &DWHJRU\ , &DWHJRU\ ,, DQG &DWHJRU\ ,,, 7KH 'UDIW
3URVSHFWXVDQGWKLV3URVSHFWXVZLOOQRWKRZHYHUFRQVWLWXWHDQRIIHUWRVHOORUDQLQYLWDWLRQWRVXEVFULEHIRUWKH
1&'VRIIHUHGKHUHE\LQDQ\MXULVGLFWLRQRWKHUWKDQ,QGLDWRDQ\SHUVRQWRZKRPLWLVXQODZIXOWRPDNHDQRIIHU
RU LQYLWDWLRQ LQ VXFK MXULVGLFWLRQ $Q\ SHUVRQ LQWR ZKRVH SRVVHVVLRQ WKH 'UDIW 3URVSHFWXV DQG WKLV 3URVSHFWXV
FRPHVLVUHTXLUHGWRLQIRUPKLPVHOIRUKHUVHOIDERXWDQGWRREVHUYHDQ\VXFKUHVWULFWLRQV
7UDFN5HFRUGRISDVWLVVXHVKDQGOHGE\WKH/HDG0DQDJHUV
7KH WUDFN UHFRUG RI SDVW LVVXHV KDQGOHG E\ ,&,&, 6HFXULWLHV /LPLWHG DQG $. &DSLWDO 6HUYLFHV /LPLWHG DUH
DYDLODEOHDWZZZLFLFLVHFXULWLHVFRPDQGZZZDNFDSLQGLDFRPUHVSHFWLYHO\
/LVWLQJ
7KH1&'VZLOOEHOLVWHGRQWKH%6(%6(LVWKH'HVLJQDWHG6WRFN([FKDQJH7KH%6(KDVJLYHQLQSULQFLSOH
OLVWLQJDSSURYDOWKURXJKWKHLUOHWWHUGDWHG0DUFK
,IWKHSHUPLVVLRQWROLVWDQGWUDGHWKH1&'VKDVQRWEHHQJUDQWHGE\WKH%6(RXU&RPSDQ\VKDOOUHSD\DOOVXFK
PRQH\V UHFHLYHG IURP WKH $SSOLFDQW LQ SXUVXDQFH RI WKLV 3URVSHFWXV LQ FRPSOLDQFH ZLWK DSSOLFDEOH ODZ 2XU
&RPSDQ\VKDOOXVHEHVWHIIRUWVWRHQVXUHWKDWDOOVWHSVIRUWKHFRPSOHWLRQRIWKHQHFHVVDU\IRUPDOLWLHVIRUOLVWLQJ
DQGFRPPHQFHPHQWRIWUDGLQJDWWKH%6(ZLOOEHWDNHQZLWKLQ:RUNLQJ'D\VIURPWKH,VVXH&ORVLQJ'DWH
'LYLGHQG
)RUGHWDLOVRIGLYLGHQGVSDLGE\RXU&RPSDQ\IRUWKHVL[PRQWKVHQGHG6HSWHPEHUDQGILQDQFLDO\HDUV
HQGHG 0DUFK DQG SOHDVH VHH VHFWLRQ WLWOHG ³$QQH[XUH $ ± )LQDQFLDO
6WDWHPHQWV´RQSDJH
0HFKDQLVPIRUUHGUHVVDORILQYHVWRUJULHYDQFHV
6KULUDP,QVLJKW6KDUH%URNHUV/LPLWHG KDVEHHQDSSRLQWHGDVWKH5HJLVWUDUWRWKH,VVXHWRHQVXUHWKDWLQYHVWRU
JULHYDQFHVDUHKDQGOHGH[SHGLWLRXVO\DQGVDWLVIDFWRULO\DQGWRHIIHFWLYHO\GHDOZLWKLQYHVWRUFRPSODLQWV
$OOJULHYDQFHVUHODWLQJWRWKH,VVXHVKRXOGEHDGGUHVVHGWRWKH5HJLVWUDUWRWKH,VVXHDQGWKH&RPSOLDQFH2IILFHU
JLYLQJ IXOO GHWDLOV RI WKH $SSOLFDQW QXPEHU RI 1&'V DSSOLHG IRU DPRXQW SDLG RQ DSSOLFDWLRQ VHULHVRSWLRQ
DSSOLHGIRUDQG0HPEHURIWKH6\QGLFDWH7UDGLQJ0HPEHU6&6%WRZKLFKWKHDSSOLFDWLRQZDVVXEPLWWHG
$OOJULHYDQFHVUHODWLQJWRWKH$6%$SURFHVVPD\EHDGGUHVVHGWRWKH5HJLVWUDUWRWKH,VVXHZLWKDFRS\WRHLWKHU
D WKH UHOHYDQW 'HVLJQDWHG %UDQFK RI WKH 6&6% ZKHUH WKH $SSOLFDWLRQ )RUP ZDV VXEPLWWHG E\ WKH $6%$
$SSOLFDQWRUEWKHFRQFHUQHG0HPEHURIWKH6\QGLFDWHDQGWKHUHOHYDQW'HVLJQDWHG%UDQFKRIWKH6&6%LQ
WKHHYHQWRIDQ$SSOLFDWLRQVXEPLWWHGE\DQ$6%$$SSOLFDQWDWDQ\RIWKH6\QGLFDWH$6%$&HQWUHVJLYLQJIXOO
GHWDLOV VXFK DV QDPH DGGUHVV RI $SSOLFDQW $SSOLFDWLRQ )RUP QXPEHU VHULHVRSWLRQ DSSOLHG IRU QXPEHU RI
1&'VDSSOLHGIRUDPRXQWEORFNHGRQ$SSOLFDWLRQ
$OO JULHYDQFHV DULVLQJ RXW RI $SSOLFDWLRQV IRU WKH 1&'V PDGH WKURXJK 7UDGLQJ 0HPEHUV PD\ EH DGGUHVVHG
GLUHFWO\WRWKH%6(
,668(6758&785(
3XEOLFLVVXHRI1&'VDJJUHJDWLQJXSWR ` ODNKVZLWKDQRSWLRQWRUHWDLQRYHUVXEVFULSWLRQXSWR` ODNKVIRULVVXDQFHRIDGGLWLRQDO1&'VDJJUHJDWLQJXSWR`ODNKV
7KHIROORZLQJDUHWKHNH\WHUPVRIWKH1&'V7KLVVHFWLRQVKRXOGEHUHDGLQFRQMXQFWLRQZLWKDQGLVTXDOLILHGLQ
LWVHQWLUHW\E\PRUHGHWDLOHGLQIRUPDWLRQLQ³7HUPVRIWKH,VVXH´RQSDJH
3DUWLFXODUV
0LQLPXPDSSOLFDWLRQVL]H
0RGHRIDOORWPHQW
7HUPVRI3D\PHQW
7UDGLQJ/RW
:KRFDQ$SSO\
7HUPVDQG&RQGLWLRQV
` 1&'V IRU DOO VHULHV RI 1&'V QDPHO\ 6HULHV , 6HULHV ,, 6HULHV ,,,
6HULHV,96HULHV9DQG6HULHV9,HLWKHUWDNHQLQGLYLGXDOO\RUFROOHFWLYHO\
7KHPLQLPXPQXPEHURI1&'VSHU$SSOLFDWLRQ)RUPZLOOEHFDOFXODWHGRQWKHEDVLVRI
WKHWRWDOQXPEHURI1&'VDSSOLHGIRUXQGHUHDFKVXFK$SSOLFDWLRQ)RUPDQGQRWRQWKH
EDVLVRIDQ\VSHFLILFRSWLRQ
%RWKLQGHPDWHULDOLVHGIRUPDVZHOODVLQSK\VLFDOIRUPDVVSHFLILHGE\WKH$SSOLFDQWLQ
WKH$SSOLFDWLRQ)RUP
)XOODPRXQWRQDSSOLFDWLRQ
RQH1&'
&DWHJRU\,±,QVWLWXWLRQDODQG1RQ,QVWLWXWLRQDO,QYHVWRUV
5HVLGHQW SXEOLF ILQDQFLDO LQVWLWXWLRQV FRPPHUFLDO EDQNV DQG UHJLRQDO UXUDO
EDQNVLQFRUSRUDWHGLQ,QGLDDQGDXWKRUL]HGWRLQYHVWLQWKH1&'V
,QGLDQSURYLGHQWIXQGVSHQVLRQIXQGVVXSHUDQQXDWLRQIXQGVDQGJUDWXLW\IXQGV
DXWKRUL]HGWRLQYHVWLQWKH1&'V
6WDWHLQGXVWULDOGHYHORSPHQWFRUSRUDWLRQV
,QGLDQYHQWXUHFDSLWDOIXQGVUHJLVWHUHGZLWK6(%,
,QGLDQLQVXUDQFHFRPSDQLHVUHJLVWHUHGZLWKWKH,5'$
1DWLRQDO,QYHVWPHQW)XQG
,QGLDQPXWXDOIXQGVUHJLVWHUHGZLWK6(%,
$OWHUQDWLYH,QYHVWPHQW)XQGVUHJLVWHUHGZLWK6(%,
,QVXUDQFHIXQGVVHWXSE\DQGPDQDJHGE\WKHDUP\QDY\RUDLUIRUFHRIWKH
8QLRQRI,QGLDRUE\WKH'HSDUWPHQWRI3RVWV*R,
&RPSDQLHVERGLHVFRUSRUDWHDQGVRFLHWLHVUHJLVWHUHGXQGHUWKHDSSOLFDEOHODZV
LQ,QGLDDQGDXWKRUL]HGWRLQYHVWLQWKH1&'V
7UXVWV VHWWOHG XQGHU WKH ,QGLDQ 7UXVWV $FW DQG RWKHU SXEOLFSULYDWH
FKDULWDEOHUHOLJLRXV WUXVWV VHWWOHG DQGRU UHJLVWHUHG LQ ,QGLD XQGHU DSSOLFDEOH
ODZVZKLFKDUHDXWKRUL]HGWRLQYHVWLQWKH1&'V
5HVLGHQW,QGLDQVFLHQWLILFDQGRULQGXVWULDOUHVHDUFKRUJDQL]DWLRQVDXWKRUL]HGWR
LQYHVWLQWKH1&'V
6WDWXWRU\ERGLHVFRUSRUDWLRQV
&RRSHUDWLYHEDQNV
/LPLWHGOLDELOLW\SDUWQHUVKLSVIRUPHGDQGUHJLVWHUHGXQGHUWKHSURYLVLRQVRIWKH
/LPLWHG/LDELOLW\3DUWQHUVKLS$FW1RRIDXWKRUL]HGWRLQYHVWLQ
WKH1&'VDQG
3DUWQHUVKLS ILUPV IRUPHG XQGHU DSSOLFDEOH ODZV LQ ,QGLD LQ WKH QDPH RI WKH
SDUWQHUVDXWKRUL]HGWRLQYHVWLQWKH1&'V
&DWHJRU\,,±+LJK1HW:RUWK,QGLYLGXDOV
5HVLGHQW,QGLDQLQGLYLGXDOVDQG+LQGX8QGLYLGHG)DPLOLHVDSSO\LQJWKURXJKWKH.DUWD
IRU1&'VDJJUHJDWLQJWRDYDOXHRIPRUHWKDQ`DFURVVDOOVHULHVRI1&'V
&DWHJRU\,,,±5HWDLO,QGLYLGXDO,QYHVWRUV
5HVLGHQW,QGLDQLQGLYLGXDOVDQG+LQGX8QGLYLGHG)DPLOLHVDSSO\LQJWKURXJKWKH.DUWD
IRU1&'VDJJUHJDWLQJWRDYDOXHQRWPRUHWKDQ`DFURVVDOOVHULHVRI1&'V
3DUWLFLSDWLRQ E\ DQ\ RI WKH DERYHPHQWLRQHG LQYHVWRU FODVVHV LQ WKLV ,VVXH ZLOO EH VXEMHFW WR DSSOLFDEOH
VWDWXWRU\DQGRUUHJXODWRU\UHTXLUHPHQWV$SSOLFDQWVDUHDGYLVHGWRHQVXUHWKDWDSSOLFDWLRQVPDGHE\WKHP
GRQRWH[FHHGWKHLQYHVWPHQWOLPLWVRUPD[LPXPQXPEHURI1&'VWKDWFDQEHKHOGE\WKHPXQGHUDSSOLFDEOH
VWDWXWRU\DQGRUUHJXODWRU\SURYLVLRQV
,QFDVHRI$SSOLFDWLRQ)RUPEHLQJVXEPLWWHGLQMRLQWQDPHV$SSOLFDQWVVKRXOGHQVXUHWKDWWKHGHPDWDFFRXQWLVDOVR
KHOGLQWKHVDPHMRLQWQDPHVDQGWKHQDPHVDUHLQWKHVDPHVHTXHQFHLQZKLFKWKH\DSSHDULQWKH$SSOLFDWLRQ)RUP
$SSOLFDQWV DUH DGYLVHG WR HQVXUH WKDW WKH\ KDYH REWDLQHG WKH QHFHVVDU\ VWDWXWRU\ DQGRU UHJXODWRU\ SHUPLVVLRQV
FRQVHQWVDSSURYDOVLQFRQQHFWLRQZLWKDSSO\LQJIRUVXEVFULELQJWRRUVHHNLQJDOORWPHQWRI1&'VSXUVXDQWWRWKH
,VVXH
)RUIXUWKHUGHWDLOVSOHDVHVHHVHFWLRQWLWOHG³,VVXH3URFHGXUH´RQSDJH
7(506$1'&21',7,216,1&211(&7,21:,7+7+(1&'6
1DWXUHRIWKH1&'V
7KH1&'VEHLQJLVVXHGDUHLQIRUPRIVHFXUHGUHGHHPDEOHQRQFRQYHUWLEOHGHEHQWXUHVRIIDFHYDOXHRI`
HDFK7KHSULQFLSOHWHUPVRIHDFK6HULHVRI1&'VDUHVHWRXWEHORZ
6HULHV
)UHTXHQF\ RI
LQWHUHVW
SD\PHQW
0LQLPXP
DSSOLFDWLRQ
,QPXOWLSOHV
RI
,
$QQXDO
,,
$QQXDO
,,,
$QQXDO
9
9,
` 1&'VIRUDOOVHULHVRI1&'VQDPHO\6HULHV,6HULHV,,6HULHV,,,6HULHV,96HULHV9DQG6HULHV
9,HLWKHUWDNHQLQGLYLGXDOO\RUFROOHFWLYHO\
`2QH
`2QH
`2QH
`2QH `2QH `2QH1&'
1&'
1&'
1&'
1&'
1&'
`
`
`
`
`
`
)DFHYDOXHRI
1&'V
`1&'
,VVXH3ULFH`
`
`
1&'
7KURXJKYDULRXV 7KURXJKYDULRXV
0RGHRI
RSWLRQVDYDLODEOH RSWLRQVDYDLODEOH
LQWHUHVW
SD\PHQW
&RXSRQ UDWH
SHU
DQQXP IRU
1&'
+ROGHUV LQ
&DWHJRU\,
&RXSRQ UDWH
SHU
DQQXP IRU
1&'
+ROGHUV LQ
&DWHJRU\,,
&RXSRQ UDWH
SHU
DQQXP IRU
1&'
+ROGHUV LQ
&DWHJRU\,,,
(IIHFWLYH
\LHOG
SHU
DQQXP IRU
1&'
+ROGHUV LQ
&DWHJRU\,
(IIHFWLYH
\LHOG
SHU
DQQXP IRU
1&'
+ROGHUV LQ
&DWHJRU\,,
(IIHFWLYH
\LHOG
SHU
DQQXP IRU
1&'
+ROGHUV LQ
&DWHJRU\,,,
7ZHQW\IRXU
7KLUW\6L[
7HQXUH
`
`
`
`
7KURXJKYDULRXV
RSWLRQV
DYDLODEOH
1RWDSSOLFDEOH
1RWDSSOLFDEOH
1RWDSSOLFDEOH
6L[W\PRQWKV
7ZHQW\IRXU
7KLUW\6L[
6L[W\PRQWKV
,9
6HULHV
5HGHPSWLRQ
GDWH
5HGHPSWLRQ
DPRXQWSHU
1&'
5HFRUG'DWH
,
PRQWKV
7ZHQW\IRXU
PRQWKVIURP
WKH'HHPHG
'DWHRI
$OORWPHQW
5HSD\PHQWRI
WKHIDFHYDOXH
SOXVDQ\
LQWHUHVWWKDW
PD\KDYH
DFFUXHGDWWKH
5HGHPSWLRQ
'DWH
,,
PRQWKV
7KLUW\VL[
PRQWKVIURP
WKH'HHPHG
'DWHRI
$OORWPHQW
5HSD\PHQWRI
WKHIDFHYDOXH
SOXVDQ\
LQWHUHVWWKDW
PD\KDYH
DFFUXHGDWWKH
5HGHPSWLRQ
'DWH
ILIWHHQ
GD\V SULRU WR
WKH UHOHYDQW
LQWHUHVW
SD\PHQW GDWH
RU UHOHYDQW
5HGHPSWLRQ
'DWH
IRU
1&'V
ILIWHHQ
GD\V SULRU WR
WKH UHOHYDQW
LQWHUHVW
SD\PHQW GDWH
RU
UHOHYDQW
5HGHPSWLRQ
'DWH
IRU
1&'V
,,,
6L[W\PRQWKV
IURPWKH
'HHPHG'DWH
RI$OORWPHQW
5HSD\PHQWRI
WKHIDFHYDOXH
SOXVDQ\
LQWHUHVWWKDW
PD\KDYH
DFFUXHGDWWKH
5HGHPSWLRQ
'DWH
ILIWHHQ
GD\V SULRU WR
WKH
UHOHYDQW
LQWHUHVW
SD\PHQW GDWH
RU
UHOHYDQW
5HGHPSWLRQ
'DWHIRU1&'V
,9
PRQWKV
7ZHQW\IRXU
PRQWKVIURP
WKH'HHPHG
'DWHRI
$OORWPHQW
)RU&DWHJRU\,
1&'+ROGHUV
`SHU
1&'
)RU&DWHJRU\,,
1&'+ROGHUV
`SHU
1&'
)RU&DWHJRU\
,,,1&'
+ROGHUV`
SHU
1&'
ILIWHHQ
GD\V SULRU WR
WKH
5HGHPSWLRQ
'DWHIRU1&'V
9
9,
PRQWKV
7KLUW\VL[ 6L[W\PRQWKVIURP
PRQWKVIURP WKH'HHPHG'DWH
WKH'HHPHG
RI$OORWPHQW
'DWHRI
$OORWPHQW
)RU&DWHJRU\, )RU&DWHJRU\,
1&'+ROGHUV 1&'+ROGHUV`
SHU
`SHU
1&'
1&'
)RU&DWHJRU\,, )RU&DWHJRU\,,
1&'+ROGHUV 1&'+ROGHUV`
`SHU
SHU
1&'
1&'
)RU&DWHJRU\ )RU&DWHJRU\,,,
,,,1&'
1&'+ROGHUV`
+ROGHUV`
SHU
1&'
SHU
1&'
ILIWHHQ ILIWHHQ GD\V
GD\V SULRU WR SULRU
WR
WKH
WKH
5HGHPSWLRQ 'DWH
5HGHPSWLRQ IRU1&'V
'DWH
IRU
1&'V
2XU&RPSDQ\VKDOODOORFDWHDQG$OORW1&'VRI6HULHV9,WRDOOYDOLGDSSOLFDWLRQVZKHUHLQWKH$SSOLFDQWVKDYHQRWLQGLFDWHGWKHLUFKRLFHRI
WKHUHOHYDQW1&'VHULHV
)RUYDULRXVPRGHVRILQWHUHVWSD\PHQWSOHDVHVHHVHFWLRQWLWOHG³7HUPVRIWKH,VVXH±0RGHVRI3D\PHQW´RQSDJH
6XEMHFWWRDSSOLFDEOHWD[HVGHGXFWHGDWVRXUFHLIDQ\
7HUPVRI3D\PHQW
7KHHQWLUHIDFHYDOXHSHU1&'LVSD\DEOHRQ$SSOLFDWLRQ,QWKHHYHQWRI$OORWPHQWRIDOHVVHUQXPEHURI1&'V
WKDQ DSSOLHG IRU RXU &RPSDQ\ VKDOO UHIXQG WKH H[FHVV DPRXQW SDLG RQ DSSOLFDWLRQ WR WKH $SSOLFDQW LQ
DFFRUGDQFHZLWKWKHWHUPVRIWKLV3URVSHFWXV
7(5062)7+(,668(
7KH 1&'V EHLQJ RIIHUHG DV SDUW RI WKH ,VVXH DUH VXEMHFW WR WKH SURYLVLRQV RI WKH 6(%, 'HEW 5HJXODWLRQV WKH
'HEW/LVWLQJ$JUHHPHQWDSSOLFDEOHSURYLVLRQVRIWKH&RPSDQLHV$FWDQGWKH&RPSDQLHV$FWWKH
5%,$FWWKHWHUPVRIWKH'UDIW3URVSHFWXVWKLV3URVSHFWXVWKH$SSOLFDWLRQ)RUPWKHWHUPVDQGFRQGLWLRQVRI
WKHGHEHQWXUHWUXVWHHDJUHHPHQWDQGWKH'HEHQWXUH7UXVW'HHGDQGRWKHUDSSOLFDEOHVWDWXWRU\DQGRUUHJXODWRU\
UHTXLUHPHQWV LQFOXGLQJ WKRVH LVVXHG IURP WLPH WR WLPH E\ 6(%, 5%, WKH *R, DQG RWKHU VWDWXWRU\UHJXODWRU\
DXWKRULWLHVUHODWLQJWRWKHRIIHULVVXHDQGOLVWLQJRIVHFXULWLHVDQGDQ\RWKHUGRFXPHQWVWKDWPD\EHH[HFXWHGLQ
FRQQHFWLRQZLWKWKH1&'V
$XWKRULW\IRUWKH,VVXH
7KH,VVXHLVEHLQJPDGHSXUVXDQWWRWKHUHVROXWLRQSDVVHGE\WKH%RDUGRQ-XO\DQG
WKHUHVROXWLRQDSSURYHGE\WKH6HFXULWLHV0DQDJHPHQW&RPPLWWHHDWLWVPHHWLQJKHOGRQ-XO\
2XUVKDUHKROGHUVKDYHLQDUHVROXWLRQSDVVHGDWDQ$*0KHOGRQ-XO\DXWKRULVHGRXU
%RDUGWRERUURZVXPVRIPRQH\DVWKH\PD\GHHPQHFHVVDU\IRUWKHSXUSRVHRIWKHEXVLQHVV
RI RXU &RPSDQ\ XSRQ VXFK WHUPV DQG FRQGLWLRQV DQG ZLWK RU ZLWKRXW VHFXULW\ DV WKH %RDUG
PD\WKLQNILWSURYLGHGWKDWPRQH\RUPRQLHVWREHERUURZHGWRJHWKHUZLWKWKHPRQLHVDOUHDG\
ERUURZHGE\RXU&RPSDQ\DSDUWIURPWHPSRUDU\ORDQVREWDLQHGDQGRUWREHREWDLQHGIURP
RXU&RPSDQ\¶VEDQNHUVLQWKHRUGLQDU\FRXUVHRIEXVLQHVVVKDOOQRWH[FHHG`ODNKV
,VVXHVWDWXVDQGUDQNLQJRIWKH1&'V
3XEOLF LVVXH RI 1&'V DJJUHJDWLQJ XSWR ` ODNKV ZLWK DQ RSWLRQ WR UHWDLQ RYHU
VXEVFULSWLRQ XSWR `ODNKV IRULVVXDQFHRIDGGLWLRQDO1&'VDJJUHJDWLQJXSWR `
ODNKV 7KH 1&'V ZRXOGFRQVWLWXWHGLUHFWDQGVHFXUHGREOLJDWLRQVRIRXUVDQGVKDOOUDQN SDUL
SDVVXLQWHUVH
7KH 1&'V VKDOO EH VHFXUHG SXUVXDQW WR D 'HEHQWXUH 7UXVW 'HHG DQG XQGHUO\LQJ VHFXULW\
GRFXPHQWV7KH1&'+ROGHUVDUHHQWLWOHGWRWKHEHQHILWRIWKH'HEHQWXUH7UXVW'HHGDQGDUH
ERXQGE\DQGDUHGHHPHGWRKDYHQRWLFHRIDOOWKHSURYLVLRQVRIWKH'HEHQWXUH7UXVW'HHG
7KH SULQFLSDO DPRXQW RI WKH 1&'V WR EH LVVXHG LQ WHUPV RI WKLV 3URVSHFWXV WRJHWKHU ZLWK DOO
LQWHUHVWGXHRQWKH1&'VDVZHOODVDOOFRVWVFKDUJHVDOOIHHVUHPXQHUDWLRQRIWKH'HEHQWXUH
7UXVWHH DQG H[SHQVHV SD\DEOH LQ UHVSHFW WKHUHRI E\ ZD\ RI D ILUVW DQG H[FOXVLYH FKDUJH RQ
VSHFLILHG IXWXUH UHFHLYDEOHV RI RXU &RPSDQ\ LQ IDYRXU RI WKH 'HEHQWXUH 7UXVWHH DQG D SDUL
SDVVXFKDUJHRQLGHQWLILHGLPPRYDEOHSURSHUW\RIRXU&RPSDQ\DVPD\EHGHFLGHGPXWXDOO\
E\RXU&RPSDQ\DQGWKH'HEHQWXUH7UXVWHH2XU&RPSDQ\ZLOOFUHDWHDSSURSULDWHVHFXULW\LQ
IDYRXURIWKH'HEHQWXUH7UXVWHHIRUWKH1&'+ROGHUVRQWKHDVVHWVDGHTXDWHWRHQVXUH
DVVHWFRYHUIRUWKH1&'V
7KH FODLPV RI WKH 1&' +ROGHUV VKDOO EH VXSHULRU WR WKH FODLPV RI DQ\ XQVHFXUHG FUHGLWRUV
VXEMHFWWRDSSOLFDEOHVWDWXWRU\DQGRUUHJXODWRU\UHTXLUHPHQWV
)RUPIDFHYDOXHWLWOHDQGOLVWLQJHWF
)RUPRI$OORWPHQW
L
7KH$OORWPHQWRIWKH1&'VVKDOOEHLQDGHPDWHULDOL]HGIRUPDVZHOODVSK\VLFDOIRUP
2XU &RPSDQ\ KDV PDGH GHSRVLWRU\ DUUDQJHPHQWV ZLWK &'6/ DQG 16'/ IRU WKH
LVVXDQFHRIWKH1&'VLQGHPDWHULDOL]HGIRUPSXUVXDQWWRWKHWULSDUWLWHDJUHHPHQWGDWHG
1RYHPEHU DPRQJ RXU &RPSDQ\ WKH 5HJLVWUDU DQG &'6/ DQG WKH WULSDUWLWH
DJUHHPHQW GDWHG 1RYHPEHU DPRQJ RXU &RPSDQ\ WKH 5HJLVWUDU DQG 16'/
FROOHFWLYHO\³7ULSDUWLWH$JUHHPHQWV´
LL 2XU&RPSDQ\VKDOOWDNHQHFHVVDU\VWHSVWRFUHGLWWKH'HSRVLWRU\3DUWLFLSDQWDFFRXQWRI
WKH $SSOLFDQWV ZLWK WKH QXPEHU RI 1&'V DOORWWHG LQ GHPDWHULDOL]HG IRUP 7KH 1&'
+ROGHUV KROGLQJ WKH 1&'V LQ GHPDWHULDOLVHG IRUP VKDOO GHDO ZLWK WKH 1&'V LQ
DFFRUGDQFHZLWKWKHSURYLVLRQVRIWKH'HSRVLWRULHV$FWDQGRUUXOHVDVQRWLILHGE\WKH
'HSRVLWRULHVIURPWLPHWRWLPH
LLL
7KH 1&' +ROGHUV PD\ UHPDWHULDOL]H WKH 1&'V LVVXHG LQ GHPDWHULDOLVHG IRUP DW DQ\
WLPHDIWHU $OORWPHQWLQDFFRUGDQFHZLWKWKHSURYLVLRQVRIWKH'HSRVLWRULHV$FWDQGRU
UXOHVDVQRWLILHGE\WKH'HSRVLWRULHVIURPWLPHWRWLPH
LY
,QFDVHRI1&'VKHOGLQSK\VLFDOIRUPZKHWKHURQ$OORWPHQWRURQUHPDWHULDOL]DWLRQRI
1&'VDOORWWHGLQGHPDWHULDOLVHGIRUPRXU&RPSDQ\ZLOOLVVXHRQHFHUWLILFDWHIRUHDFK
6HULHVRI1&'VWRWKH1&'+ROGHUIRUWKHDJJUHJDWHDPRXQWRIWKH1&'VWKDWDUHKHOG
E\ VXFK 1&' +ROGHU HDFK VXFK FHUWLILFDWH D ³&RQVROLGDWHG 1&' &HUWLILFDWH´ ,Q
UHVSHFWRID&RQVROLGDWHG1&'&HUWLILFDWHRXU&RPSDQ\VKDOOZLWKLQ%XVLQHVV'D\V
RI WKH UHFHLSW RI D UHTXHVW IURP DQ 1&' +ROGHU VSOLW VXFK &RQVROLGDWHG 1&'
&HUWLILFDWHLQWRVPDOOHUGHQRPLQDWLRQVLQDFFRUGDQFHZLWKDSSOLFDEOHUHJXODWLRQVUXOHV
DFWV VXEMHFW WR D PLQLPXP GHQRPLQDWLRQ RI RQH 1&' 1R IHHV ZLOO EH FKDUJHG IRU
VSOLWWLQJD &RQVROLGDWHG 1&'&HUWLILFDWHDQGDQ\VWDPSGXW\RQVXFKVSOLWLISD\DEOH
ZLOO EH SDLG E\ WKH 1&' +ROGHU7KH UHTXHVW WR VSOLW D &RQVROLGDWHG 1&' &HUWLILFDWH
VKDOO EH DFFRPSDQLHG E\ WKH RULJLQDO &RQVROLGDWHG 1&' &HUWLILFDWH ZKLFK ZLOO XSRQ
LVVXDQFHRIWKHVSOLW&RQVROLGDWHG1&'&HUWLILFDWHEHFDQFHOOHGE\RXU&RPSDQ\
0DQQHURIDOORWPHQW
L
LL
$OORWPHQWRIWKH1&'VZLOOEHLQSK\VLFDODQGGHPDWHULDOLVHGIRUP
)RU1&'VLVVXHGLQGHPDWHULDOLVHGIRUPRXU&RPSDQ\ZLOOWDNHUHTXLVLWHVWHSVWRFUHGLW
WKH GHPDW DFFRXQWV RI DOO VXFFHVVIXO $OORWWHHV ZKR KDYH DSSOLHG IRU WKH 1&'V LQ
GHPDWHULDOLVHGIRUPZLWKLQ:RUNLQJ'D\VIURPWKH,VVXH&ORVXUH'DWH
LLL
)RU 1&'V LVVXHG LQ SK\VLFDO IRUP RXU &RPSDQ\ ZLOO LVVXH &RQVROLGDWHG 1&'
&HUWLILFDWHVWRDOOVXFFHVVIXO$OORWWHHVZKRKDYHDSSOLHGIRUWKH1&'VLQSK\VLFDOIRUP
ZLWKLQ:RUNLQJ'D\VIURPWKH,VVXH&ORVXUH'DWH
)DFH9DOXH
7KHIDFHYDOXHRIHDFK1&'LV`
7LWOH
L
,QFDVHRI
D DQ1&'KHOGLQGHPDWHULDOLVHGIRUPWKHSHUVRQIRUWKHWLPHEHLQJDSSHDULQJLQWKH
UHJLVWHURIEHQHILFLDORZQHUVPDLQWDLQHGE\WKH'HSRVLWRULHVDQG
E DQ 1&' KHOG LQ SK\VLFDO IRUP WKH SHUVRQ IRU WKH WLPH EHLQJ DSSHDULQJ LQ WKH
5HJLVWHURI1&'+ROGHUVDVGHILQHGEHORZDV1&'+ROGHU
VKDOO EH WUHDWHG IRU DOO SXUSRVHV E\ RXU &RPSDQ\ WKH 'HEHQWXUH 7UXVWHH WKH
'HSRVLWRULHVDQGDOORWKHUSHUVRQVGHDOLQJZLWKVXFKSHUVRQVWKHKROGHUWKHUHRIDQGLWV
DEVROXWH RZQHU IRU DOO SXUSRVHV ZKHWKHU RU QRW LW LV RYHUGXH DQG UHJDUGOHVV RI DQ\
QRWLFH RI RZQHUVKLS WUXVW RU DQ\ LQWHUHVW LQ LW RU DQ\ ZULWLQJ RQ WKHIW RU ORVV RI WKH
&RQVROLGDWHG1&'&HUWLILFDWHIRU1&'VKHOGLQSK\VLFDOIRUPDQGQRSHUVRQZLOOEH
OLDEOHIRUVRWUHDWLQJWKH1&'+ROGHU
LL
1RWUDQVIHU RIWLWOH RID 1&' ZLOOEH YDOLGXQOHVVDQGXQWLOHQWHUHG RQWKH 5HJLVWHU RI
1&'+ROGHUVRUWKHUHJLVWHURIEHQHILFLDORZQHUVPDLQWDLQHGE\RXU&RPSDQ\DQGRU
WKH'HSRVLWRULHVRUWKH5HJLVWUDUWRWKH,VVXHSULRUWRWKH5HFRUG'DWH,QWKHDEVHQFHRI
WUDQVIHUEHLQJUHJLVWHUHGLQWHUHVWDQGRU5HGHPSWLRQ$PRXQWDVWKHFDVH PD\EHZLOO
EHSDLGWRWKHSHUVRQZKRVHQDPHDSSHDUVILUVWLQWKH5HJLVWHURI1&'+ROGHUVRUWKH
UHJLVWHU RI EHQHILFLDO RZQHUV PDLQWDLQHG E\ RXU &RPSDQ\ DQG RU WKH 'HSRVLWRULHV
DQGRUWKH5HJLVWUDUWRWKH,VVXHDVWKHFDVHPD\EH,QVXFKFDVHVFODLPVLIDQ\E\WKH
SXUFKDVHUVRIWKH1&'VZLOOQHHGWREHVHWWOHGZLWKWKHVHOOHURIWKH1&'VDQGQRWZLWK
RXU&RPSDQ\RUWKH5HJLVWUDUWRWKH,VVXH
/LVWLQJ
7KH1&'VZLOOEHOLVWHGRQWKH%6(
0DUNHW/RW
7KH1&'VVKDOOEHDOORWWHGLQSK\VLFDODVZHOODVGHPDWHULDOLVHGIRUP,QWHUPVRIWKH 6(%,
'HEW 5HJXODWLRQV WKH WUDGLQJ RI WKH 1&'V VKDOO EH LQ GHPDWHULDOLVHG IRUP RQO\ 6LQFH WKH
WUDGLQJ RI 1&'V LV LQ GHPDWHULDOL]HG IRUP WKH WUDGDEOH ORW IRU WKH 1&'V LV RQH 1&'
³0DUNHW/RW´
3URFHGXUHIRUUHPDWHULDOLVDWLRQRI1&'V
1&'+ROGHUVZKRZLVKWRKROGWKH1&'VLQSK\VLFDOIRUPDIWHUKDYLQJRSWHGIRU$OORWPHQWLQ
GHPDWHULDOLVHG IRUP PD\ GR VR E\ VXEPLWWLQJ D UHTXHVW WR WKHLU 'HSRVLWRU\ 3DUWLFLSDQW LQ
DFFRUGDQFHZLWKDSSOLFDEOHSURFHGXUHVVWLSXODWHGE\WKH'HSRVLWRU\3DUWLFLSDQW
3URFHGXUHIRUGHPDWHULDOLVDWLRQRI1&'V
1&' +ROGHUV ZKR ZLVK WR KROG WKH 1&'V LQ GHPDWHULDOLVHG IRUP DIWHU KDYLQJ RSWHG IRU
$OORWPHQWLQSK\VLFDOIRUPPD\GRVRE\VXEPLWWLQJDUHTXHVWWRWKHLU'HSRVLWRU\3DUWLFLSDQW
LQDFFRUGDQFHZLWKDSSOLFDEOHSURFHGXUHVVWLSXODWHGE\WKH'HSRVLWRU\3DUWLFLSDQW
7UDQVIHURIWKH1&'VLVVXHRI&RQVROLGDWHG1&'&HUWLILFDWHVHWF
5HJLVWHURI1&'+ROGHUV
2XU &RPSDQ\ VKDOO PDLQWDLQ DW LWV UHJLVWHUHG RIILFH RU VXFK RWKHU SODFH DV SHUPLWWHG E\
6HFWLRQV DQG $ RI WKH &RPSDQLHV $FW D UHJLVWHU RI 1&' +ROGHUV FRQWDLQLQJ
VXFK SDUWLFXODUV RI WKH OHJDO RZQHUV RI WKH 1&'V )XUWKHU WKH UHJLVWHU RI EHQHILFLDO RZQHUV
PDLQWDLQHG E\ 'HSRVLWRULHV IRU DQ\ 1&' LQ GHPDWHULDOLVHG IRUP XQGHU 6HFWLRQ RI WKH
'HSRVLWRULHV$FWVKDOODOVREHGHHPHGWREHDUHJLVWHURI1&'+ROGHUVIRUWKLVSXUSRVH
7UDQVIHUV
L
7UDQVIHURI1&'VKHOGLQGHPDWHULDOLVHGIRUP
,Q UHVSHFW RI 1&'V KHOG LQ WKH GHPDWHULDOLVHG IRUP WUDQVIHUV RI WKH 1&'V PD\ EH
HIIHFWHGRQO\WKURXJKWKH'HSRVLWRULHVZKHUHVXFK1&'VDUHKHOGLQDFFRUGDQFHZLWK
WKHSURYLVLRQVRIWKH'HSRVLWRULHV$FWDQGRUUXOHVDVQRWLILHGE\WKH'HSRVLWRULHVIURP
WLPHWRWLPH7KH1&'+ROGHUVKDOOJLYHGHOLYHU\LQVWUXFWLRQVFRQWDLQLQJGHWDLOVRIWKH
SURVSHFWLYHSXUFKDVHU¶V'HSRVLWRU\3DUWLFLSDQW¶VDFFRXQWWRKLV'HSRVLWRU\3DUWLFLSDQW
,I D SURVSHFWLYH SXUFKDVHU GRHV QRW KDYH D 'HSRVLWRU\ 3DUWLFLSDQW DFFRXQW WKH 1&'
+ROGHUPD\UHPDWHULDOL]HKLVRUKHU1&'VDQGWUDQVIHUWKHPLQDPDQQHUDVVSHFLILHGLQ
SDUDJUDSKLLEHORZ
LL
7UDQVIHURI1&'VLQSK\VLFDOIRUP
7KH1&'VPD\EHWUDQVIHUUHGLQDPDQQHUDVPD\EHSUHVFULEHGE\RXU&RPSDQ\IRU
WKH UHJLVWUDWLRQ RI WUDQVIHU RI 1&'V 3XUFKDVHUV RI 1&'V DUH DGYLVHG WR VHQG WKH
&RQVROLGDWHG1&'&HUWLILFDWHWRRXU&RPSDQ\RUWRVXFKSHUVRQVDVPD\EHQRWLILHGE\
RXU&RPSDQ\IURPWLPHWRWLPH,IDSXUFKDVHURIWKH1&'VLQSK\VLFDOIRUPLQWHQGVWR
KROG WKH 1&'V LQ GHPDWHULDOLVHG IRUP WKH 1&'V PD\ EH GHPDWHULDOL]HG E\ WKH
SXUFKDVHUWKURXJK KLVRUKHU'HSRVLWRU\3DUWLFLSDQWLQDFFRUGDQFHZLWK WKHSURYLVLRQV
RIWKH'HSRVLWRULHV$FWDQGRUUXOHVDVQRWLILHGE\WKH'HSRVLWRULHVIURPWLPHWRWLPH
7KHSD\PHQWRIVWDPSGXW\RQWUDQVIHURI1&'VDVZHOODVWKHH[HFXWLRQRILQVWUXPHQW
RI WUDQVIHU DV UHTXLUHG XQGHU 6HFWLRQ RI WKH &RPSDQLHV $FW KDV EHHQ
H[HPSWHG E\ *R,¶V QRWLILFDWLRQ 1R *65 ( GDWHG 'HFHPEHU 2XU
&RPSDQ\ ZLOO UHJLVWHU WKH WUDQVIHU RI 1&'V SURYLGHG WKH 1&' &HUWLILFDWH ZLWK WKH
GHWDLOV RI QDPH DGGUHVV RFFXSDWLRQ LI DQ\ DQG VLJQDWXUH RI WKH WUDQVIHUHH RQ WKH
UHYHUVH RI WKH 1&' &HUWLILFDWH LV GHOLYHUHG WR WKH DGGUHVVRI WKH 5HJLVWUDU PHQWLRQHG
KHUHLQE\UHJLVWHUHGSRVWRUE\KDQGGHOLYHU\1RVWDPSGXW\LVSD\DEOHXQGHUWKHVDLG
QRWLILFDWLRQRQVXFKWUDQVIHUV2XU&RPSDQ\VKDOORQEHLQJVDWLVILHGDQGVXEMHFWWRWKH
SURYLVLRQV RI WKH $UWLFOHV RI $VVRFLDWLRQ UHJLVWHU WKH WUDQVIHU RI VXFK 1&'V LQ LWV
ERRNV
LLL
)RUPDOLWLHVIUHHRIFKDUJH
5HJLVWUDWLRQRIDWUDQVIHURI1&'VDQGLVVXDQFHRIQHZ&RQVROLGDWHG1&'&HUWLILFDWHV
ZLOOEHHIIHFWHGZLWKRXWFKDUJHE\RURQEHKDOIRIRXU&RPSDQ\EXWRQSD\PHQWRUWKH
JLYLQJRIVXFKLQGHPQLW\DVRXU&RPSDQ\ PD\UHTXLUHLQUHVSHFWRIDQ\WD[RURWKHU
JRYHUQPHQWDO FKDUJHV ZKLFK PD\ EH LPSRVHG LQ UHODWLRQ WR VXFK WUDQVIHU DQG RXU
&RPSDQ\ EHLQJ VDWLVILHG WKDW WKH UHTXLUHPHQWV FRQFHUQLQJ WUDQVIHUV RI 1&'V KDYH
EHHQFRPSOLHGZLWK
'HEHQWXUH5HGHPSWLRQ5HVHUYH³'55´
3XUVXDQWWR5HJXODWLRQRIWKH6(%,'HEW5HJXODWLRQVDQGVHFWLRQ&RIWKH&RPSDQLHV
$FW DQ\ FRPSDQ\ WKDW LQWHQGV WR LVVXH GHEHQWXUHV QHHGV WR FUHDWH D '55 WR ZKLFK
DGHTXDWHDPRXQWVVKDOOEHFUHGLWHGRXWRIWKHSURILWVRIWKHFRPSDQ\XQWLOWKHUHGHPSWLRQRI
WKHGHEHQWXUHV)XUWKHUWKH0&$KDVWKURXJKLWVFLUFXODUGDWHG)HEUXDU\VSHFLILHG
WKDW 1%)&V VKDOO FUHDWH D '55 WR WKH H[WHQW RI RI WKH YDOXH RI WKH GHEHQWXUHV LVVXHG
WKURXJK SXEOLF LVVXHV $FFRUGLQJO\ RXU &RPSDQ\ VKDOO FUHDWH '55 RI RI WKH YDOXH RI
1&'V LVVXHG DQG DOORWWHG LQ WHUPV RI WKLV 3URVSHFWXV RU VXFK WR VXFK H[WHQW DV PD\ EH
UHTXLUHG XQGHU DSSOLFDEOH ODZV IURP WLPH WR WLPH IRU WKH UHGHPSWLRQ RI WKH 1&'V 2XU
&RPSDQ\VKDOOFUHGLWDGHTXDWHDPRXQWVWRWKH'55IURPLWVSURILWVHYHU\\HDUXQWLOWKH1&'V
DUHUHGHHPHG7KHDPRXQWVFUHGLWHGWRWKH'55VKDOOQRWEHXWLOL]HGE\RXU&RPSDQ\IRUDQ\
SXUSRVHRWKHUWKDQIRUWKHUHGHPSWLRQRIWKH1&'V
$SSOLFDWLRQ$PRXQW
7KH 1&'VDUHEHLQJLVVXHGDWSDUDQGIXOODPRXQWRI IDFHYDOXHSHU 1&'LVSD\DEOHRQDSSOLFDWLRQ
(OLJLEOH$SSOLFDQWVFDQ DSSO\IRU DQ\DPRXQWRIWKH1&'VVXEMHFWWRD PLQLPXPDSSOLFDWLRQVL]HRI
`1&'VIRUDOOVHULHVRI1&'VQDPHO\6HULHV,6HULHV,,6HULHV,,,6HULHV,96HULHV9
DQG 6HULHV 9, HLWKHU WDNHQ LQGLYLGXDOO\ RU FROOHFWLYHO\ 7KH $SSOLFDQWV ZLOO EH DOORWWHG WKH 1&'V LQ
DFFRUGDQFHZLWKWKH%DVLVRI$OORWPHQW
'HHPHG'DWHRI$OORWPHQW
7KH'HHPHG'DWHRI $OORWPHQW IRUWKH1&'VVKDOOEH WKH GDWH RI LVVXH RIWKH $OORWPHQW $GYLFHRU
VXFKGDWHDVPD\EHGHWHUPLQHGE\WKH%RDUGRUDGXO\FRQVWLWXWHGFRPPLWWHHWKHUHRIDQGQRWLILHGWR
WKH %6( $OO EHQHILWV UHODWLQJ WR WKH 1&'V LQFOXGLQJ LQWHUHVW RQ WKH 1&'V VKDOO EH DYDLODEOH WR WKH
LQYHVWRUVIURPWKH'HHPHG'DWHRI$OORWPHQW7KHDFWXDO$OORWPHQWRI1&'VPD\WDNHSODFHRQDGDWH
RWKHUWKDQWKH'HHPHG'DWHRI$OORWPHQW
6XEVFULSWLRQ
3HULRGRI6XEVFULSWLRQ
7KH,VVXHVKDOOUHPDLQRSHQIRUWKHSHULRGPHQWLRQHGEHORZ
$SULO
,VVXHRSHQVRQ
0D\
,VVXHFORVHVRQ
7KH ,VVXH VKDOO UHPDLQ RSHQ IRU VXEVFULSWLRQ IURP DP WLOO 30 ,QGLDQ 6WDQGDUG
7LPHIRUWKHSHULRGPHQWLRQHGDERYHZLWKDQRSWLRQIRUHDUO\FORVXUHRUH[WHQVLRQE\VXFK
SHULRGDVPD\EHGHFLGHGE\WKH%RDUGRI'LUHFWRUVRUDGXO\FRQVWLWXWHGFRPPLWWHHWKHUHRI,Q
WKHHYHQWRIVXFKHDUO\FORVXUHRUH[WHQVLRQRIWKHVXEVFULSWLRQOLVWRIWKH,VVXHRXU&RPSDQ\
VKDOOHQVXUHWKDWSXEOLFQRWLFHRIVXFKHDUO\FORVXUHRUH[WHQVLRQLVSXEOLVKHGRQRUEHIRUHWKH
GD\RIVXFKHDUO\GDWHRIFORVXUHRU,VVXH&ORVLQJ'DWHWKURXJKDGYHUWLVHPHQWVLQDWOHDVWRQH
OHDGLQJQDWLRQDOGDLO\QHZVSDSHU
8QGHUZULWLQJ
7KH,VVXHLVQRWXQGHUZULWWHQ
0LQLPXP6XEVFULSWLRQ
,IRXU&RPSDQ\GRHVQRWUHFHLYHWKHPLQLPXPVXEVFULSWLRQRIRIWKH%DVH,VVXHLH`
ODNKV RQ WKH GDWH RI FORVXUH RI WKH ,VVXH WKH HQWLUH $SSOLFDWLRQ $PRXQWV VKDOO EH
UHIXQGHG WR WKH $SSOLFDQWV ZLWKLQ WKH WLPH SUHVFULEHG XQGHU DSSOLFDEOH VWDWXWRU\ UHJXODWRU\
UHTXLUHPHQWV,IWKHUHLVGHOD\LQWKHUHIXQGRI $SSOLFDWLRQ$PRXQWVEH\RQGWKHSHUPLVVLEOH
WLPH SHULRG DV PD\ EH SUHVFULEHG E\ DSSOLFDEOH VWDWXWRU\ UHJXODWRU\ UHTXLUHPHQWV IRU RXU
&RPSDQ\WRUHIXQGWKH$SSOLFDWLRQ$PRXQWVRXU&RPSDQ\ZLOOSD\LQWHUHVWIRUWKHGHOD\HG
SHULRGDWUDWHVSUHVFULEHGXQGHUVXFKDSSOLFDEOHVWDWXWRU\DQGRUUHJXODWRU\UHTXLUHPHQWV
,QWHUHVW
,QWHUHVWUDWHV
L
6HULHV,1&'V
)RU6HULHV,1&'VLQWHUHVWZRXOGEHSDLGRQ DQDQQXDO EDVLVDWWKHIROORZLQJ LQWHUHVW
UDWHV LQ FRQQHFWLRQ ZLWK WKH UHOHYDQW FDWHJRULHV RI 1&' +ROGHUV RQ WKH DPRXQW
RXWVWDQGLQJ IURP WLPH WR WLPH FRPPHQFLQJ IURP WKH 'HHPHG 'DWH RI $OORWPHQW RI
HDFK6HULHV,1&'
&DWHJRU\RI1&'+ROGHU
&DWHJRU\,
&DWHJRU\,,
&DWHJRU\,,,
,QWHUHVWUDWHSHUDQQXP
6HULHV , 1&'V VKDOO EH UHGHHPHG DW WKH IDFH YDOXH WKHUHRI DORQJ ZLWK WKH LQWHUHVW
DFFUXHGWKHUHRQLIDQ\DWWKHHQGRIPRQWKVIURPWKH'HHPHG'DWHRI$OORWPHQW
LL
6HULHV,,1&'V
)RU6HULHV,,1&'VLQWHUHVWZRXOGEHSDLGRQDQDQQXDOEDVLVDWWKHIROORZLQJLQWHUHVW
UDWHV LQ FRQQHFWLRQ ZLWK WKH UHOHYDQW FDWHJRULHV RI 1&' +ROGHUV RQ WKH DPRXQW
RXWVWDQGLQJ IURP WLPH WR WLPH FRPPHQFLQJ IURP WKH 'HHPHG 'DWH RI $OORWPHQW RI
HDFK6HULHV,,1&'
&DWHJRU\RI1&'+ROGHU
&DWHJRU\,
&DWHJRU\,,
&DWHJRU\,,,
LLL
,QWHUHVWUDWHSHUDQQXP
6HULHV ,, 1&'V VKDOO EH UHGHHPHG DW WKH IDFH YDOXH WKHUHRI DORQJ ZLWK WKH LQWHUHVW
DFFUXHGWKHUHRQLIDQ\DWWKHHQGRIPRQWKVIURPWKH'HHPHG'DWHRI$OORWPHQW
6HULHV,,,1&'V
)RU6HULHV,,,1&'VLQWHUHVWZRXOGEHSDLGRQDQDQQXDOEDVLVDWWKHIROORZLQJLQWHUHVW
UDWHV LQ FRQQHFWLRQ ZLWK WKH UHOHYDQW FDWHJRULHV RI 1&' +ROGHUV RQ WKH DPRXQW
RXWVWDQGLQJ IURP WLPH WR WLPH FRPPHQFLQJ IURP WKH 'HHPHG 'DWH RI $OORWPHQW RI
HDFK6HULHV,,,1&'
&DWHJRU\RI1&'+ROGHU
&DWHJRU\,
,QWHUHVWUDWHSHUDQQXP
&DWHJRU\RI1&'+ROGHU
&DWHJRU\,,
&DWHJRU\,,,
,QWHUHVWUDWHSHUDQQXP
6HULHV ,,, 1&'V VKDOO EH UHGHHPHG DW WKH IDFH YDOXH WKHUHRI DORQJ ZLWK WKH LQWHUHVW
DFFUXHGWKHUHRQLIDQ\DWWKHHQGRIPRQWKVIURPWKH'HHPHG'DWHRI$OORWPHQW
LY
6HULHV,91&'V
1RSHULRGLFLQWHUHVWSD\PHQWVZRXOGEHSDLGWR1&'+ROGHUVKROGLQJ6HULHV,91&'V
+RZHYHU6HULHV,91&'VVKDOOEHUHGHHPHGDWWKHHQGRIPRQWKVIURPWKH'HHPHG
'DWH RI $OORWPHQW DW WKH IROORZLQJ 5HGHPSWLRQ $PRXQWV IRU DOO &DWHJRULHV RI 1&'
+ROGHUV
Y
5HGHPSWLRQ$PRXQW LQ`
`
6XEMHFWWRDSSOLFDEOHWD[HVGHGXFWHGDWVRXUFHLIDQ\
6HULHV91&'V
1RSHULRGLFLQWHUHVWSD\PHQWVZRXOGEHSDLGWR1&'+ROGHUVKROGLQJ6HULHV91&'V
+RZHYHU6HULHV91&'VVKDOOEHUHGHHPHGDWWKHHQGRIPRQWKVIURPWKH'HHPHG
'DWH RI $OORWPHQW DW WKH IROORZLQJ 5HGHPSWLRQ $PRXQWV IRU DOO &DWHJRULHV RI 1&'
+ROGHUV
YL
&DWHJRU\RI1&'+ROGHU
&DWHJRU\,
&DWHJRU\,,
&DWHJRU\,,,
&DWHJRU\RI1&'+ROGHU
&DWHJRU\,
&DWHJRU\,,
&DWHJRU\,,,
5HGHPSWLRQ$PRXQW LQ`
`
&DWHJRU\RI1&'+ROGHU
&DWHJRU\,
&DWHJRU\,,
&DWHJRU\,,,
5HGHPSWLRQ$PRXQW LQ`
`
6XEMHFWWRDSSOLFDEOHWD[HVGHGXFWHGDWVRXUFHLIDQ\
6HULHV9,1&'V
1RSHULRGLFLQWHUHVWSD\PHQWVZRXOGEHSDLGWR1&'+ROGHUVKROGLQJ6HULHV9,1&'V
+RZHYHU6HULHV9,1&'VVKDOOEHUHGHHPHGDWWKHHQGRIPRQWKVIURPWKH'HHPHG
'DWH RI $OORWPHQW DW WKH IROORZLQJ 5HGHPSWLRQ $PRXQWV IRU DOO &DWHJRULHV RI 1&'
+ROGHUV
6XEMHFWWRDSSOLFDEOHWD[HVGHGXFWHGDWVRXUFHLIDQ\
3OHDVH QRWH WKDW LQ FDVH WKH 1&'V DUH WUDQVIHUUHG DQGRU WUDQVPLWWHG LQ DFFRUGDQFH
ZLWK WKH SURYLVLRQV RI WKLV 3URVSHFWXV UHDG ZLWK WKH SURYLVLRQV RI WKH $UWLFOHV RI
$VVRFLDWLRQ RI RXU &RPSDQ\ WKH WUDQVIHUHH RI VXFK 1&'V VKDOO EH HQWLWOHG WR DQ\
LQWHUHVW ZKLFK PD\ KDYH DFFUXHG RQ WKH 1&'V VXEMHFW WR VXFK WUDQVIHUHH KROGLQJ WKH
1&'VRQWKH5HFRUG'DWH
'D\FRXQWFRQYHQWLRQ
,QWHUHVWRQWKH1&'VVKDOOEHFRPSXWHGRQDQDFWXDODFWXDOEDVLVIRUWKHEURNHQSHULRGLIDQ\
&RQVHTXHQWO\ LQWHUHVW VKDOO EH FRPSXWHG RQ D GD\VD\HDU EDVLV RQ WKH SULQFLSDO
RXWVWDQGLQJRQWKH1&'V+RZHYHUZKHUHWKHLQWHUHVWSHULRGVWDUWGDWHWRHQGGDWHLQFOXGHV
)HEUXDU\LQWHUHVWVKDOOEHFRPSXWHGRQGD\VD\HDUEDVLVRQWKHSULQFLSDORXWVWDQGLQJ
RQWKH1&'V
,OOXVWUDWLRQRIFDVKIORZV7RGHPRQVWUDWHWKHGD\FRXQWFRQYHQWLRQSOHDVHVHHWKHIROORZLQJ
WDEOH EHORZ ZKLFK GHVFULEHV WKH FDVKIORZ LQ WHUPV RI LQWHUHVW SD\PHQW DQG SD\PHQW RI
5HGHPSWLRQ$PRXQWSHU1&'IRUDOO&DWHJRULHVRI1&'+ROGHUV
L
&DVKIORZVRQ6HULHV,1&'V
3DUWLFXODUV
'HWDLOV
&RPSDQ\
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
)DFHYDOXHSHU1&'
`
,VVXH2SHQLQJGDWH'DWHRIDOORWPHQWWHQWDWLYH
$SULO0D\7XHVGD\
5HGHPSWLRQ'DWH
0D\
,QWHUHVWUDWHIRU&DWHJRU\,
,QWHUHVWUDWHIRU&DWHJRULHV,,DQG,,,
)UHTXHQF\RILQWHUHVWSD\PHQWZLWKVSHFLILHGGDWHV
$QQXDO
'D\FRXQWFRQYHQWLRQ
$FWXDO$FWXDO
%DVHGRQ WKH,VVXH &ORVLQJ 'DWH 0D\ DQGSRVW,VVXH WLPHOLQHV IRUWKHSUHVHQW ,VVXH DQG
PD\EHVXEMHFWWRFKDQJHV
&DVKIORZV
HYHQW
'XHGDWH
'DWHRISD\PHQW
)LUVWFRXSRQ
0D\
0D\
:HGQHVGD\
:HGQHVGD\
6HFRQGFRXSRQ
0D\
0D\
)ULGD\
)ULGD\
3ULQFLSDO0DWXULW\
0D\
0D\
)ULGD\
YDOXH
)ULGD\
7RWDO
3D\PHQW
SHULRG
GD\V
&DVKIORZVIRU
&DWHJRU\,``
&DVKIORZV
IRU
&DWHJRULHV
,,DQG,,,
``
LL
&DVKIORZVRQ6HULHV,,1&'V
3DUWLFXODUV
'HWDLOV
&RPSDQ\
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
)DFHYDOXHSHU1&'
`
,VVXH2SHQLQJGDWH'DWHRIDOORWPHQWWHQWDWLYH
$SULO0D\7XHVGD\
5HGHPSWLRQ'DWH
0D\
,QWHUHVWUDWHIRU&DWHJRU\,
,QWHUHVWUDWHIRU&DWHJRULHV,,DQG,,,
)UHTXHQF\RILQWHUHVWSD\PHQWZLWKVSHFLILHGGDWHV
$QQXDO
'D\FRXQWFRQYHQWLRQ
$FWXDO$FWXDO
%DVHGRQ WKH,VVXH &ORVLQJ 'DWH 0D\ DQGSRVW,VVXH WLPHOLQHV IRUWKHSUHVHQW ,VVXH DQG
PD\EHVXEMHFWWRFKDQJHV
&DVKIORZV
HYHQW
'XHGDWH
'DWHRISD\PHQW
)LUVWFRXSRQ
0D\
0D\
:HGQHVGD\
:HGQHVGD\
6HFRQGFRXSRQ
0D\
0D\
)ULGD\
)ULGD\
7KLUGFRXSRQ
0D\
0D\
6DWXUGD\
6DWXUGD\
3ULQFLSDO0DWXULW\
0D\
0D\
6DWXUGD\
YDOXH
6DWXUGD\
7RWDO
3D\PHQW
SHULRG
GD\V
&DVKIORZVIRU
&DWHJRU\,``
&DVKIORZV
IRU
&DWHJRULHV
,,DQG,,,
``
LLL
&DVKIORZVIRU6HULHV,,,1&'V
3DUWLFXODUV
'HWDLOV
&RPSDQ\
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
)DFHYDOXHSHU1&'
`
,VVXH2SHQLQJGDWH'DWHRIDOORWPHQWWHQWDWLYH
$SULO0D\7XHVGD\
5HGHPSWLRQ'DWH
0D\
,QWHUHVWUDWHIRU&DWHJRU\,
,QWHUHVWUDWHIRU&DWHJRULHV,,DQG,,,
)UHTXHQF\RILQWHUHVWSD\PHQWZLWKVSHFLILHGGDWHV
$QQXDO
'D\FRXQWFRQYHQWLRQ
$FWXDO$FWXDO
%DVHGRQ WKH,VVXH &ORVLQJ 'DWH 0D\ DQGSRVW,VVXH WLPHOLQHV IRUWKHSUHVHQW ,VVXH DQG
PD\EHVXEMHFWWRFKDQJHV
&DVKIORZV
HYHQW
'XHGDWH
'DWHRI
SD\PHQW
)LUVWFRXSRQ
0D\
0D\
:HGQHVGD\
:HGQHVGD\
6HFRQGFRXSRQ
0D\
0D\
)ULGD\
)ULGD\
7KLUGFRXSRQ
0D\
0D\
6DWXUGD\
6DWXUGD\
)RXUWKFRXSRQ
0D\
0D\
0RQGD\
6XQGD\
)LIWKFRXSRQ
0D\
0D\
0RQGD\
0RQGD\
3ULQFLSDO0DWXULW\
0D\
0D\
0RQGD\
YDOXH
0RQGD\
7RWDO
3D\PHQW
SHULRG
GD\V
&DVKIORZVIRU
&DWHJRU\,``
&DVKIORZV
IRU
&DWHJRULHV
,,DQG,,,
``
LY
&DVKIORZVRQ6HULHV,91&'V
3DUWLFXODUV
'HWDLOV
&RPSDQ\
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
)DFHYDOXHSHU1&'
`
,VVXH2SHQLQJGDWH'DWHRIDOORWPHQWWHQWDWLYH
$SULO0D\7XHVGD\
5HGHPSWLRQ'DWH
0D\
,QWHUHVWUDWHIRU&DWHJRU\,
1$
,QWHUHVWUDWHIRU&DWHJRULHV,,DQG,,,
1$
)UHTXHQF\RILQWHUHVWSD\PHQWZLWKVSHFLILHGGDWHV
1$
'D\FRXQWFRQYHQWLRQ
$FWXDO$FWXDO
%DVHGRQ WKH,VVXH &ORVLQJ 'DWH 0D\ DQGSRVW,VVXH WLPHOLQHV IRUWKHSUHVHQW ,VVXH DQG
PD\EHVXEMHFWWRFKDQJHV
&DVKIORZV
HYHQW
'XHGDWH
'DWHRISD\PHQW
3ULQFLSDO0DWXULW\ 0D\
0D\
YDOXH
)ULGD\
)ULGD\
7RWDO
3D\PHQW
SHULRG
GD\V
&DVKIORZV
IRU&DWHJRU\
,`
`
1$
&DVKIORZV
IRU
&DWHJRULHV
,,DQG,,,
``
Y
&DVKIORZVRQ6HULHV91&'V
3DUWLFXODUV
'HWDLOV
&RPSDQ\
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
)DFHYDOXHSHU1&'
`
,VVXH2SHQLQJGDWH'DWHRIDOORWPHQWWHQWDWLYH
$SULO0D\7XHVGD\
5HGHPSWLRQ'DWH
0D\
,QWHUHVWUDWHIRU&DWHJRU\,
1$
,QWHUHVWUDWHIRU&DWHJRULHV,,DQG,,,
1$
)UHTXHQF\RILQWHUHVWSD\PHQWZLWKVSHFLILHGGDWHV
1$
'D\FRXQWFRQYHQWLRQ
$FWXDO$FWXDO
%DVHGRQ WKH,VVXH &ORVLQJ 'DWH 0D\ DQGSRVW,VVXH WLPHOLQHV IRUWKHSUHVHQW ,VVXH DQG
PD\EHVXEMHFWWRFKDQJHV
&DVKIORZV
HYHQW
'XHGDWH
'DWHRI
SD\PHQW
3ULQFLSDO0DWXULW\ 0D\
0D\
YDOXH
6DWXUGD\
6DWXUGD\
7RWDO
3D\PHQW
SHULRG
GD\V
&DVKIORZVIRU
&DWHJRU\,`
`
1$
&DVKIORZV
IRU
&DWHJRULHV
,,DQG,,,
``
YL
&DVKIORZVRQ6HULHV9,1&'V
3DUWLFXODUV
'HWDLOV
&RPSDQ\
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
)DFHYDOXHSHU1&'
`
,VVXH2SHQLQJGDWH'DWHRIDOORWPHQWWHQWDWLYH
$SULO0D\7XHVGD\
5HGHPSWLRQ'DWH
0D\
,QWHUHVWUDWHIRU&DWHJRU\,
1$
,QWHUHVWUDWHIRU&DWHJRULHV,,DQG,,,
1$
)UHTXHQF\RILQWHUHVWSD\PHQWZLWKVSHFLILHGGDWHV
1$
'D\FRXQWFRQYHQWLRQ
$FWXDO$FWXDO
%DVHGRQ WKH,VVXH &ORVLQJ 'DWH 0D\ DQGSRVW,VVXH WLPHOLQHV IRUWKHSUHVHQW ,VVXH DQG
PD\EHVXEMHFWWRFKDQJHV
&DVKIORZV
HYHQW
'XHGDWH
'DWHRI
SD\PHQW
3ULQFLSDO0DWXULW\ 0D\
0D\
YDOXH
0RQGD\
0RQGD\
7RWDO
3D\PHQW
SHULRG
GD\V
&DVKIORZVIRU
&DWHJRU\,`
1$
&DVKIORZV
IRU
&DWHJRULHV
,,DQG,,,
``
,QWHUHVWRQ$SSOLFDWLRQ$PRXQWV
L
,QWHUHVWRQDSSOLFDWLRQPRQLHVUHFHLYHGZKLFKDUHXVHGWRZDUGVDOORWPHQWRI1&'V
D :H VKDOO SD\ LQWHUHVWRQ $SSOLFDWLRQ $PRXQWVRQ WKH DPRXQWDOORWWHG VXEMHFW WR
GHGXFWLRQ RI LQFRPH WD[ XQGHU WKH SURYLVLRQV RI WKH ,QFRPH 7D[ $FW DV
DSSOLFDEOH WR DQ\ $SSOLFDQWV WR ZKRP 1&'V DUH $OORWWHG H[FHSW IRU $6%$
$SSOLFDQWV SXUVXDQW WR WKH ,VVXH IURP WKH GDWH RI UHDOL]DWLRQ RI WKH
FKHTXHVGHPDQGGUDIWVRUWKUHHGD\VIURPWKHGDWHRIXSORDGRIWKH$SSOLFDWLRQ
RQWKHHOHFWURQLFELGGLQJSODWIRUPRI%6(ZKLFKHYHULVODWHUXSWRRQHGD\SULRUWR
WKH'HHPHG'DWHRI$OORWPHQWDWWKHUDWHRISD
E $ WD[ GHGXFWLRQ FHUWLILFDWH ZLOO EH LVVXHG IRU WKH DPRXQW RI LQFRPH WD[ VR
GHGXFWHG
F :HPD\HQWHULQWRDQDUUDQJHPHQWZLWKRQHRUPRUHEDQNVLQRQHRUPRUHFLWLHV
IRUGLUHFWFUHGLWRILQWHUHVWWRWKHDFFRXQWRIWKHDSSOLFDQWV$OWHUQDWLYHO\LQWHUHVW
ZDUUDQWVZLOOEHGLVSDWFKHGDORQJZLWKWKH/HWWHUVRI$OORWPHQWDWWKHVROHULVNRI
WKHDSSOLFDQWWRWKHVROHILUVWDSSOLFDQW
LL
,QWHUHVWRQDSSOLFDWLRQPRQLHVUHFHLYHGZKLFKDUHOLDEOHWREHUHIXQGHG
D :HVKDOOSD\LQWHUHVWRQ$SSOLFDWLRQ$PRXQWVZKLFKLVOLDEOHWREHUHIXQGHGWRWKH
$SSOLFDQWV RWKHU WKDQ $SSOLFDWLRQ $PRXQWV UHFHLYHG DIWHU WKH FORVXUH RI WKH
,VVXH DQG $6%$ $SSOLFDQWV VXEMHFW WR GHGXFWLRQ RI LQFRPH WD[ XQGHU WKH
SURYLVLRQVRIWKH,QFRPH7D[$FWDVDSSOLFDEOHIURPWKHGDWHRIUHDOL]DWLRQRIWKH
FKHTXHVGHPDQGGUDIWVRUWKUHHGD\VIURPWKHGDWHRIXSORDGRIWKH$SSOLFDWLRQ
RQWKHHOHFWURQLFELGGLQJSODWIRUPRI%6(ZKLFKHYHULVODWHUXSWRRQHGD\SULRUWR
WKH'HHPHG'DWHRI$OORWPHQWDWWKHUDWHRISD6XFKLQWHUHVWVKDOOEHSDLG
DORQJ ZLWK WKH PRQLHV OLDEOH WR EH UHIXQGHG ,QWHUHVW ZDUUDQWV ZLOO EH
GLVSDWFKHGFUHGLWHG LQ FDVH RI HOHFWURQLF SD\PHQW DORQJ ZLWK WKH OHWWHUV RI
UHIXQGDWWKHVROHULVNRIWKH$SSOLFDQWWRWKHVROHILUVW$SSOLFDQW
E $ WD[ GHGXFWLRQ FHUWLILFDWH ZLOO EH LVVXHG IRU WKH DPRXQW RI LQFRPH WD[ VR
GHGXFWHG
F 3URYLGHG WKDW QRWZLWKVWDQGLQJ DQ\WKLQJ FRQWDLQHG KHUHLQDERYH RXU &RPSDQ\
VKDOOQRWEHOLDEOHWRSD\DQ\LQWHUHVWRQPRQLHVOLDEOHWREHUHIXQGHGLQFDVHRID
LQYDOLG $SSOLFDWLRQVRU $SSOLFDWLRQV OLDEOH WREH UHMHFWHG DQGRU EDSSOLFDWLRQV
ZKLFKDUHZLWKGUDZQE\WKHDSSOLFDQW3OHDVHVHHVHFWLRQWLWOHG³,VVXH3URFHGXUH±
5HMHFWLRQRI$SSOLFDWLRQV´RQSDJH
G ,QWKHHYHQWRXU&RPSDQ\GRHVQRWUHFHLYHDPLQLPXPVXEVFULSWLRQRIRIWKH
%DVH ,VVXH LH ` ODNKV RQ WKH GDWH RI FORVXUH RI WKH ,VVXH RXU &RPSDQ\
VKDOO SD\ LQWHUHVW RQ DSSOLFDWLRQ PRQH\ ZKLFK LV OLDEOH WR EH UHIXQGHG WR WKH
DSSOLFDQWV LQ DFFRUGDQFH ZLWK WKH SURYLVLRQV RI WKH 'HEW 5HJXODWLRQV DQGRU WKH
DSSOLFDEOHSURYLVLRQVRIWKH &RPSDQLHV$FWDQGWKH&RPSDQLHV$FW
RURWKHUDSSOLFDEOHVWDWXWRU\DQGRUUHJXODWRU\UHTXLUHPHQWVVXEMHFWWRGHGXFWLRQ
RILQFRPHWD[XQGHUWKHSURYLVLRQVRIWKH,QFRPH7D[$FW
5HGHPSWLRQ
7KHIDFHYDOXHRIWKH1&'VZLOOEHUHGHHPHGDWSDURQWKHUHVSHFWLYH 5HGHPSWLRQ'DWHVRI
HDFK RI WKH 1&' 6HULHV )RU IXUWKHU GHWDLOV SOHDVH VHH WKH VXEVHFWLRQ WLWOHG ³7HUPV RI WKH
,VVXH±,QWHUHVW´RQSDJH
3URFHGXUHIRU5HGHPSWLRQE\1&'+ROGHUV
7KHSURFHGXUHIRUUHGHPSWLRQLVVHWRXWEHORZ
L
1&'VKHOGLQHOHFWURQLFIRUP
1RDFWLRQLVUHTXLUHGRQWKHSDUWRI1&'+ROGHUVDWWKHWLPHRIPDWXULW\RIWKH1&'V
LL
1&'VKHOGLQSK\VLFDOIRUP
1RDFWLRQZLOORUGLQDULO\EHUHTXLUHGRQWKHSDUWRI1&'+ROGHUVKROGLQJWKH1&'VLQ
SK\VLFDOIRUPDWWKHWLPHRIUHGHPSWLRQDQGWKH0DWXULW\$PRXQWZLOOEHSDLGWRWKRVH
1&'+ROGHUVZKRVHQDPHVDSSHDULQWKH5HJLVWHURI1&'+ROGHUVPDLQWDLQHGE\RXU
&RPSDQ\RQWKH5HFRUG'DWHIL[HGIRUWKHSXUSRVHRIUHGHPSWLRQZLWKRXWWKHUHEHLQJD
UHTXLUHPHQW IRU WKH VXUUHQGHU RI WKH SK\VLFDO &RQVROLGDWHG 1&' &HUWLILFDWHV 2XU
&RPSDQ\VKDOOVWDQGGLVFKDUJHGRIDQ\OLDELOLWLHVDULVLQJRXWRIDQ\IUDXGXOHQWWUDQVIHU
RIWKH1&'VRUQRQUHJLVWUDWLRQRIWUDQVIHURI1&'VZLWKRXU&RPSDQ\
3D\PHQWV
3D\PHQWRI,QWHUHVWRQ1&'V
D 3D\PHQWRILQWHUHVWRQWKH1&'VDFURVV6HULHV,,,DQG,,,ZLOOEHPDGHWRWKRVH1&'
+ROGHUV ZKRVH QDPH DSSHDUV ILUVW LQ WKH 5HJLVWHU RI 1&' +ROGHUV PDLQWDLQHG E\ WKH
'HSRVLWRULHVDQGRURXU&RPSDQ\DQGRUWKH5HJLVWUDUWRWKH,VVXHDVWKHFDVHPD\EHDV
RQWKH5HFRUG'DWH
E ,QWHUHVWRQWKHUHOHYDQW6HULHVRI1&'V6HULHV,,,DQG,,,VKDOOEHSDLGRQVXFKGDWHVDV
VSHFLILHGEHORZ
L $QQXDOSD\PHQWRILQWHUHVWRQ6HULHV,,,DQG,,,1&'V
)RU 1&'V VXEVFULEHG RU KHOG DV WKH FDVH PD\ EH XQGHU 6HULHV , DQGRU 6HULHV ,,
DQGRU6HULHV,,,WKHUHOHYDQWLQWHUHVWZLOOEHSDLGRQWKHDQQLYHUVDU\RIWKH'HHPHG
'DWHRI$OORWPHQWHYHU\\HDUIRUWKHDPRXQWRXWVWDQGLQJ7KHILUVWLQWHUHVWSD\PHQW
ZLOOEHPDGHRQWKHILUVWDQQLYHUVDU\RIWKH'HHPHG'DWHRI$OORWPHQWIRUWKHSHULRG
FRPPHQFLQJ IURP WKH 'HHPHG 'DWH RI $OORWPHQW WLOO RQH GD\ SULRU WR WKH ILUVW
DQQLYHUVDU\RIWKH'HHPHG'DWHRI$OORWPHQW7KHODVWLQWHUHVWSD\PHQWZLOOEHPDGH
DWWKHWLPHRIUHGHPSWLRQRIWKH1&'V
LL 1&'VXQGHU6HULHV,99DQG9,
)RU1&'VVXEVFULEHGRUKHOGDVWKH FDVH PD\EHXQGHU6HULHV,9DQGRU6HULHV9
DQGRU 6HULHV 9, QR SHULRGLF LQWHUHVW SD\PHQWV VKDOO EH PDGH )RU IXUWKHU GHWDLOV
SOHDVHVHHWKHVXEVHFWLRQWLWOHG³±,QWHUHVW´RQSDJH
5HFRUG'DWH
7KHUHFRUGGDWHIRUWKHSD\PHQWRILQWHUHVWRUWKH0DWXULW\$PRXQWVKDOOEH%XVLQHVV'D\V
SULRU WR WKH GDWH RQ ZKLFK VXFK DPRXQW LV GXH DQG SD\DEOH ³5HFRUG 'DWH´ ,Q FDVH RI
UHGHPSWLRQRI1&'VWKHWUDGLQJLQWKH1&'VVKDOOUHPDLQVXVSHQGHGEHWZHHQWKH5HFRUG
'DWHDQGWKH5HGHPSWLRQ'DWH,QWKHHYHQWWKH5HFRUG'DWHIRUSD\PHQWRILQWHUHVWIDOOV
RQD6DWXUGD\6XQGD\RUDSXEOLFKROLGD\LQ&KHQQDLRUDQ\RWKHUSD\PHQWFHQWUHQRWLILHG
LQ WHUPV RI WKH 1HJRWLDEOH ,QVWUXPHQWV $FW WKH VXFFHHGLQJ %XVLQHVV 'D\ ZLOO EH
FRQVLGHUHGDVWKH5HFRUG'DWH
(IIHFWRIKROLGD\VRQSD\PHQWV
D ,IWKHGDWHRILQWHUHVWSD\PHQWIDOOVRQD6XQGD\RUDSXEOLFKROLGD\LQ&KHQQDLRUDQ\
RWKHU SD\PHQW FHQWUH QRWLILHG LQ WHUPV RI WKH 1HJRWLDEOH ,QVWUXPHQWV $FW WKH
VXFFHHGLQJ :RUNLQJ 'D\ ZLOO EH FRQVLGHUHG DV WKH HIIHFWLYH GDWH &RQVHTXHQWO\ LQ FDVH
WKHGDWHRISD\PHQWRILQWHUHVWVSHFLILHGIDOOVRQDKROLGD\WKHSD\PHQWZLOOEHPDGHRQ
WKH VXFFHHGLQJ :RUNLQJ 'D\ DORQJ ZLWK LQWHUHVW IRU VXFK DGGLWLRQDO SHULRG 6XFK
DGGLWLRQDOLQWHUHVWZLOOEHGHGXFWHGIURPWKHLQWHUHVWSD\DEOHRQWKHQH[WGDWHRISD\PHQW
RILQWHUHVW
E ,IWKH5HGHPSWLRQ'DWHIDOOVRQD6XQGD\RUDSXEOLFKROLGD\LQ&KHQQDLRUDQ\RWKHU
SD\PHQW FHQWUH QRWLILHG LQ WHUPV RI WKH 1HJRWLDEOH ,QVWUXPHQWV $FW WKH
SUHFHGLQJ:RUNLQJ'D\ZLOOEHFRQVLGHUHGDVWKH5HGHPSWLRQ'DWH&RQVHTXHQWO\LQFDVH
WKH5HGHPSWLRQ'DWHIDOOVRQDKROLGD\WKHSD\PHQWRIWKH5HGHPSWLRQ$PRXQW ZLOOEH
PDGHRQWKHSUHFHGLQJ:RUNLQJ'D\DORQJZLWKFRXSRQLQWHUHVWDFFUXHGRQWKH1&'VXQWLO
EXWH[FOXGLQJWKHGDWHRIVXFKSD\PHQW
:KLOVW RXU &RPSDQ\ ZLOO XVH WKH HOHFWURQLF PRGH IRU PDNLQJ SD\PHQWV ZKHUH IDFLOLWLHV IRU
HOHFWURQLF PRGHRISD\PHQWVDUHQRW DYDLODEOHWR WKH1&'+ROGHURU ZKHUH WKHLQIRUPDWLRQ
SURYLGHG E\ WKH $SSOLFDQW LV LQVXIILFLHQW RU LQFRPSOHWH RXU &RPSDQ\ SURSRVHV WR XVH RWKHU
PRGHVRISD\PHQWWR PDNHSD\PHQWVWRWKH 1&' +ROGHUVLQFOXGLQJWKURXJKWKH GLVSDWFKRI
FKHTXHV WKURXJK FRXULHU RU UHJLVWHUHG SRVW WR WKH DGGUHVV SURYLGHG E\ WKH 1&' +ROGHU DQG
DSSHDULQJLQWKH5HJLVWHURI1&'+ROGHUVPDLQWDLQHGE\WKH'HSRVLWRULHVDQGRURXU&RPSDQ\
DQGRU WKH 5HJLVWUDU WR WKH ,VVXH DV WKH FDVH PD\ EH DV RQ WKH 5HFRUG 'DWH 2XU &RPSDQ\
VKDOOSD\LQWHUHVWRYHUDQGDERYHWKHFRXSRQUDWHRIWKHUHOHYDQW1&'VLQWKHHYHQWWKDWVXFK
SD\PHQWVDUHGHOD\HGEH\RQGWKHSHUPLVVLEOHWLPHSHULRGDVPD\EHSUHVFULEHGE\DSSOLFDEOH
VWDWXWRU\UHJXODWRU\UHTXLUHPHQWVIRURXU&RPSDQ\WRSD\VXFKDPRXQWVH[SHFWLIVXFKGHOD\V
DUHRQDFFRXQWRIGHOD\LQSRVWDOFKDQQHOVRIWKHFRXQWU\
2XU&RPSDQ\¶VOLDELOLW\WRWKH1&'+ROGHUVLQFOXGLQJ IRUSD\PHQW RURWKHUZLVH VKDOO VWDQG
H[WLQJXLVKHGIURPWKH5HGHPSWLRQ'DWHRURQGLVSDWFKRIWKHDPRXQWVSDLGE\ZD\RISULQFLSDO
DQGRU LQWHUHVW WR WKH 1&' +ROGHUV )XUWKHU RXU &RPSDQ\ ZLOO QRW EH OLDEOH WR SD\ DQ\
LQWHUHVWLQFRPHRUFRPSHQVDWLRQRIDQ\NLQGDFFUXLQJVXEVHTXHQWWRWKH0DWXULW\'DWH
0DQQHUDQG0RGHRI3D\PHQW
0DQQHURI3D\PHQW
$OO SD\PHQWV WR EH PDGH E\ RXU &RPSDQ\ WR WKH 1&' +ROGHUV VKDOO EH PDGH LQ DQ\ RI WKH
IROORZLQJPDQQHUV
L
)RU1&'VDSSOLHGRUKHOGLQHOHFWURQLFIRUP
%DQNGHWDLOVZLOOEHREWDLQHGIURPWKH'HSRVLWRULHVIRUSD\PHQWV,QYHVWRUVZKRKDYH
DSSOLHG RU ZKR DUH KROGLQJ WKH 1&' LQ HOHFWURQLF IRUP DUH DGYLVHG WR LPPHGLDWHO\
XSGDWH WKHLU EDQN DFFRXQW GHWDLOV DV DSSHDULQJ RQ WKH UHFRUGV RI WKHLU 'HSRVLWRU\
3DUWLFLSDQW)DLOXUHWRGRVRFRXOGUHVXOWLQGHOD\VLQFUHGLWRIWKHSD\PHQWVWRLQYHVWRUV
DW WKHLU VROH ULVN DQG QHLWKHU WKH /HDG 0DQDJHUV QRU RXU &RPSDQ\ VKDOO KDYH DQ\
UHVSRQVLELOLW\DQGXQGHUWDNHDQ\OLDELOLW\IRUVXFKGHOD\VRQSDUWRIWKHLQYHVWRUV
LL
)RU1&'VKHOGLQSK\VLFDOIRUP
7KHEDQNGHWDLOVZLOOEHREWDLQHGIURPWKH5HJLVWUDUWRWKH,VVXHIURPWKH$SSOLFDWLRQ
)RUPIRUHIIHFWLQJSD\PHQWV
0RGHVRI3D\PHQW
7KHPRGHRILQWHUHVWUHIXQGH[FHSWIRUUHIXQGVWR$6%$$SSOLFDQWV5HGHPSWLRQ$PRXQWV
VKDOOEHXQGHUWDNHQLQWKHIROORZLQJRUGHURISUHIHUHQFH
L
'LUHFW&UHGLW
D $SSOLFDQWV KDYLQJ EDQN DFFRXQWV ZLWK WKH 5HIXQG %DQN DV SHU WKH GHPRJUDSKLF
GHWDLOV UHFHLYHG IURP WKH 'HSRVLWRULHV VKDOO EH HOLJLEOH WR UHFHLYH UHIXQGV WKURXJK
GLUHFWFUHGLW
E 2XU&RPSDQ\VKDOOQRWEHUHVSRQVLEOHIRUDQ\GHOD\WRWKH1&'+ROGHUUHFHLYLQJ
FUHGLW RI LQWHUHVW RU UHIXQG RU 0DWXULW\ $PRXQW VR ORQJ DV RXU &RPSDQ\ KDV
LQLWLDWHGWKHSURFHVVLQWLPH
LL
1(&6
D 7KURXJK1(&6IRU$SSOLFDQWVKDYLQJDQDFFRXQWDWDQ\RIWKHFHQWUHVQRWLILHGE\
WKH 5%, 7KLV PRGH RI SD\PHQW ZLOO EH VXEMHFW WR DYDLODELOLW\ RI FRPSOHWH EDQN
DFFRXQWGHWDLOVLQFOXGLQJWKH0DJQHWLF,QN&KDUDFWHU5HFRJQLWLRQ³0,&5´FRGH
DVDSSHDULQJRQDFKHTXHOHDIIURPWKH'HSRVLWRULHV
E 2XU&RPSDQ\VKDOOQRWEHUHVSRQVLEOHIRUDQ\GHOD\WRWKH1&'+ROGHUUHFHLYLQJ
FUHGLW RI LQWHUHVW RU UHIXQG RU 0DWXULW\ $PRXQW VR ORQJ DV RXU &RPSDQ\ KDV
LQLWLDWHGWKHSURFHVVLQWLPH
LLL
5HDO7LPH*URVV6HWWOHPHQW³57*6´
D $SSOLFDQWV KDYLQJ D EDQN DFFRXQW ZLWK D EDQN EUDQFK ZKLFK LV 57*6 HQDEOHG DV
SHU WKH LQIRUPDWLRQ DYDLODEOH RQ WKH ZHEVLWH RI 5%, DQG ZKRVH SD\PHQW DPRXQW
H[FHHGV` ODFVRUDVPD\EHVSHFLILHGE\WKH5%,IURPWLPHWRWLPHVKDOOEH
HOLJLEOH WR UHFHLYH UHIXQG WKURXJK 57*6 SURYLGHG WKH GHPRJUDSKLF GHWDLOV
GRZQORDGHG IURP WKH 'HSRVLWRULHV FRQWDLQ WKH QLQH GLJLW 0,&5 FRGH RI WKH
$SSOLFDQW¶V EDQN ZKLFK FDQ EH PDSSHG ZLWK WKH 5%, GDWD WR REWDLQ WKH
FRUUHVSRQGLQJ,QGLDQ )LQDQFLDO6\VWHP &RGH ³,)6&´&KDUJHVLI DQ\OHYLHGE\
WKH 5HIXQG %DQN IRU WKH VDPH ZRXOG EH ERUQH E\ RXU &RPSDQ\ &KDUJHV LI DQ\
OHYLHG E\ WKH $SSOLFDQW¶V EDQN UHFHLYLQJ WKH FUHGLW ZRXOG EH ERUQH E\ WKH
$SSOLFDQW
E 2XU&RPSDQ\VKDOOQRWEHUHVSRQVLEOHIRUDQ\GHOD\WRWKH1&'+ROGHUUHFHLYLQJ
FUHGLW RI LQWHUHVW RU UHIXQG RU 0DWXULW\ $PRXQW VR ORQJ DV RXU &RPSDQ\ KDV
LQLWLDWHGWKHSURFHVVLQWLPH
LY
1DWLRQDO(OHFWURQLF)XQG7UDQVIHU³1()7´
Y
D 3D\PHQW RI UHIXQG VKDOO EH XQGHUWDNHQ WKURXJK 1()7 ZKHUHYHU WKH $SSOLFDQWV¶
EDQNEUDQFKLV1()7HQDEOHGDQGKDVEHHQDVVLJQHGWKH,)6&ZKLFKFDQEHOLQNHG
WRDQ0,&5FRGHRIWKDWSDUWLFXODUEDQNEUDQFK,)6&&RGHZLOOEHREWDLQHGIURP
WKHZHEVLWHRI5%,DVRQDGDWHSULRUWRWKHGDWHRISD\PHQWRIUHIXQGGXO\PDSSHG
ZLWKDQ0,&5FRGH:KHUHYHUWKH$SSOLFDQWVKDYHUHJLVWHUHGWKHLU0,&5QXPEHU
DQG WKHLU EDQN DFFRXQW QXPEHU ZKLOH RSHQLQJ DQG RSHUDWLQJ WKH EHQHILFLDU\
DFFRXQWWKHVDPHZLOOEHGXO\PDSSHGZLWKWKH,)6&&RGHRIWKDWSDUWLFXODUEDQN
EUDQFKDQGWKHSD\PHQW ZLOO EH PDGHWRWKH $SSOLFDQWV WKURXJKWKLV PHWKRG7KH
SURFHVV IORZ LQ UHVSHFW RI UHIXQGV E\ ZD\ RI 1()7 LV DW DQ HYROYLQJ VWDJH DQG
KHQFHXVHRI1()7LVVXEMHFWWRRSHUDWLRQDOIHDVLELOLW\FRVWDQGSURFHVVHIILFLHQF\
DQG WKH SDVW H[SHULHQFH RI WKH 5HJLVWUDU WR WKH ,VVXH ,Q WKH HYHQW 1()7 LV QRW
RSHUDWLRQDOO\ IHDVLEOH WKH SD\PHQW ZRXOG EH PDGH WKURXJK DQ\ RQH RI WKH RWKHU
PRGHVDVGLVFXVVHGLQWKLVVHFWLRQ
E 2XU&RPSDQ\VKDOOQRWEHUHVSRQVLEOHIRUDQ\GHOD\WRWKH1&'+ROGHUUHFHLYLQJ
FUHGLW RI LQWHUHVW RU UHIXQG RU 0DWXULW\ $PRXQW VR ORQJ DV RXU &RPSDQ\ KDV
LQLWLDWHGWKHSURFHVVLQWLPH
&KHTXHVRUGHPDQGGUDIWV
%\ FKHTXHV RU GHPDQG GUDIWV PDGH LQ WKH QDPH RI WKH 1&' +ROGHUV ZKRVH QDPHV
DSSHDU LQ WKH 5HJLVWHU RI 1&' +ROGHUV DV PDLQWDLQHG E\ RXU &RPSDQ\ DQGRU DV
SURYLGHGE\WKH'HSRVLWRULHV$OOFKHTXHVRUGHPDQGGUDIWVDVWKHFDVHPD\EHVKDOOEH
VHQWE\UHJLVWHUHGVSHHGSRVWFRXULHUDWWKH1&'+ROGHU¶VVROHULVN
3ULQWLQJRIEDQNSDUWLFXODUV
$V D PDWWHU RI SUHFDXWLRQ DJDLQVW SRVVLEOH IUDXGXOHQW HQFDVKPHQW RI UHIXQG RUGHUV DQG
LQWHUHVWUHGHPSWLRQ ZDUUDQWV GXH WR ORVV RU PLVSODFHPHQW WKH SDUWLFXODUV RI WKH $SSOLFDQW¶V
EDQN DFFRXQW DUH PDQGDWRULO\ UHTXLUHG WR EH SURYLGHG IRU SULQWLQJ RQ WKH RUGHUVZDUUDQWV
$SSOLFDWLRQV ZLWKRXW WKHVH GHWDLOV DUH OLDEOH WR EH UHMHFWHG +RZHYHU LQ UHODWLRQ WR
$SSOLFDWLRQV IRU GHPDWHULDOLVHG 1&'V WKHVH SDUWLFXODUV ZLOO EH WDNHQ GLUHFWO\ IURP WKH
'HSRVLWRULHV,QFDVHRI1&'VKHOGLQSK\VLFDOIRUPHLWKHURQDFFRXQWRIUHPDWHULDOLVDWLRQRU
WUDQVIHUWKH1&'+ROGHUVDUHDGYLVHGWRVXEPLWWKHLUEDQNDFFRXQWGHWDLOVZLWKWKH5HJLVWUDUWR
WKH ,VVXH EHIRUH WKH 5HFRUG'DWH IDLOLQJ ZKLFK WKH DPRXQWV ZLOO EH GLVSDWFKHG WR WKH SRVWDO
DGGUHVVRIWKH1&'+ROGHUV%DQNDFFRXQWSDUWLFXODUVZLOOEHSULQWHGRQWKHRUGHUVZDUUDQWV
ZKLFKFDQWKHQEHGHSRVLWHGRQO\LQWKHDFFRXQWVSHFLILHG
6SHFLDO7D[%HQHILWV
)RUWKHGHWDLOVRIWD[EHQHILWVSOHDVHVHHVHFWLRQWLWOHG³6WDWHPHQWRI7D[%HQHILWV´RQSDJH
6HFXULW\
7KHSULQFLSDODPRXQWRIWKH1&'VWREHLVVXHGLQWHUPVRIWKLV3URVSHFWXVWRJHWKHUZLWKDOOLQWHUHVWGXH
RQWKH1&'VDVZHOODVDOOFRVWVFKDUJHVDOOIHHVUHPXQHUDWLRQRIWKH'HEHQWXUH7UXVWHHDQGH[SHQVHV
SD\DEOHLQUHVSHFWWKHUHRIE\ZD\RIDILUVWDQGH[FOXVLYHFKDUJHRQVSHFLILHGIXWXUHUHFHLYDEOHVRIRXU
&RPSDQ\LQIDYRXURIWKH'HEHQWXUH7UXVWHHDQGDSDULSDVVXFKDUJHRQLGHQWLILHGLPPRYDEOHSURSHUW\
RI RXU &RPSDQ\ DV PD\ EH GHFLGHG PXWXDOO\ E\ RXU &RPSDQ\ DQG WKH 'HEHQWXUH 7UXVWHH 2XU
&RPSDQ\ZLOOFUHDWHDSSURSULDWHVHFXULW\LQIDYRXURIWKH 'HEHQWXUH7UXVWHH IRUWKH1&'+ROGHUVRQ
WKHDVVHWVDGHTXDWHWRHQVXUHDVVHWFRYHUIRUWKH1&'V
(YHQWVRIGHIDXOW
7KH'HEHQWXUH7UXVWHHDWLWVGLVFUHWLRQPD\RULIVRUHTXHVWHGLQZULWLQJE\WKHKROGHUVRIQRW
OHVVWKDQLQSULQFLSDODPRXQWRIWKH1&'VWKHQRXWVWDQGLQJRULIVRGLUHFWHGE\DVSHFLDO
UHVROXWLRQ VKDOO VXEMHFW WR EHLQJ LQGHPQLILHG DQGRU VHFXUHG E\ WKH 1&' +ROGHUV WR LWV
VDWLVIDFWLRQJLYHQRWLFHWRRXU&RPSDQ\VSHFLI\LQJWKDWWKH1&'VDQGRUDQ\SDUWLFXODU6HULHV
RI 1&'V LQ ZKROH EXW QRW LQ SDUW DUH DQG KDYH EHFRPH GXH DQG UHSD\DEOH DW WKH HDUO\
UHGHPSWLRQDPRXQWRQVXFKGDWHDVPD\EHVSHFLILHGLQVXFKQRWLFHDPRQJRWKHUWKLQJVLIDQ\
RIWKHHYHQWVDVVWDWHGLQSDUDJUDSKEHORZRFFXU
$OOHYHQWVRIGHIDXOWVKDOOEHDVVSHFLILHGLQWKH'HEHQWXUH7UXVW'HHG
7KH HDUO\ UHGHPSWLRQ DPRXQW SD\DEOH RQ WKH RFFXUUHQFH RI DQ HYHQW RI GHIDXOW VKDOO EH DV
GHWDLOHGLQWKH'HEHQWXUH7UXVW'HHG
,IDQHYHQWRIGHIDXOWRFFXUVZKLFKLVFRQWLQXLQJWKH'HEHQWXUH7UXVWHHPD\ZLWKWKHFRQVHQW
RIWKH1&'+ROGHUVREWDLQHGLQDFFRUGDQFHZLWKWKHSURYLVLRQVRIWKH'HEHQWXUH7UXVW'HHG
DQGZLWKDSULRUZULWWHQQRWLFHWRRXU&RPSDQ\WDNHDFWLRQLQWHUPVRIWKH'HEHQWXUH 7UXVW
'HHG
,Q FDVH RI GHIDXOW LQ WKH UHGHPSWLRQ RI 1&'V LQ DGGLWLRQ WR WKH SD\PHQW RI LQWHUHVW DQG DOO
RWKHU PRQLHV SD\DEOH KHUHXQGHU RQ WKH UHVSHFWLYH GXH GDWHV RXU &RPSDQ\ VKDOO DOVR SD\
LQWHUHVWRQWKHGHIDXOWHGDPRXQWV
1&'+ROGHUV¶ULJKWVQRPLQDWLRQHWF
5LJKWVRI1&'+ROGHUV
6RPHRIWKHVLJQLILFDQWULJKWVDYDLODEOHWRWKH1&'+ROGHUVDUHDVIROORZV
L
7KH1&'VVKDOOQRWH[FHSWDVSURYLGHGLQWKHDSSOLFDEOHSURYLVLRQVRIWKH&RPSDQLHV
$FW DQG WKH &RPSDQLHV $FW FRQIHU RQ 1&' +ROGHUV DQ\ ULJKWV RU
SULYLOHJHVDYDLODEOHWRPHPEHUVRIRXU&RPSDQ\LQFOXGLQJWKHULJKWWRUHFHLYHQRWLFHVRU
DQQXDO UHSRUWV RI RU WR DWWHQG DQG RU YRWH DW RXU &RPSDQ\¶V JHQHUDO PHHWLQJV
+RZHYHULIDQ\UHVROXWLRQDIIHFWLQJWKHULJKWVRIWKH1&'+ROGHUVLVWREHSODFHGEHIRUH
WKH VKDUHKROGHUV VXFK UHVROXWLRQ ZLOO ILUVW EH SODFHG EHIRUH WKH FRQFHUQHG UHJLVWHUHG
1&'+ROGHUVIRUWKHLUFRQVLGHUDWLRQ,QWHUPVRI6HFWLRQRIWKH&RPSDQLHV$FW
1&'+ROGHUVVKDOOEHHQWLWOHGWRDFRS\RIWKHEDODQFHVKHHWRQDVSHFLILFUHTXHVW
PDGHWRRXU&RPSDQ\
LL
6XEMHFWWRDSSOLFDEOHVWDWXWRU\UHJXODWRU\UHTXLUHPHQWVDQGWHUPVRIWKH'HEHQWXUH7UXVW
'HHGLQFOXGLQJUHTXLUHPHQWVRIWKH5%,WKHULJKWVSULYLOHJHVDQGFRQGLWLRQVDWWDFKHGWR
WKH1&'V PD\EHYDULHGPRGLILHG DQGRUDEURJDWHGZLWKWKHFRQVHQWLQ ZULWLQJRIWKH
1&'+ROGHUVRIDWOHDVWWKUHHIRXUWKVRIWKHRXWVWDQGLQJDPRXQWRIWKH1&'VRUZLWKWKH
VDQFWLRQ RI D VSHFLDO UHVROXWLRQ SDVVHG DW D PHHWLQJ RI WKH FRQFHUQHG 1&' +ROGHUV
+RZHYHULQWKHHYHQWWKDWVXFKFRQVHQWRUVSHFLDOUHVROXWLRQSHUWDLQVWRPRGLI\RUYDU\
WKH WHUPV DQG FRQGLWLRQV JRYHUQLQJ WKH 1&'V VXFK FRQVHQW RU UHVROXWLRQ VKDOO QRW EH
RSHUDWLYH DJDLQVW RXU &RPSDQ\ LQ WKH HYHQW WKDW VXFK FRQVHQW RU UHVROXWLRQ LV QRW
DFFHSWDEOHWRRXU&RPSDQ\
LLL
6XEMHFWWRDSSOLFDEOHVWDWXWRU\UHJXODWRU\UHTXLUHPHQWVDQGWHUPVRIWKH'HEHQWXUH7UXVW
'HHGLQFOXGLQJUHTXLUHPHQWVRIWKH5%,WKHUHJLVWHUHG1&'+ROGHURULQFDVHRIMRLQW
KROGHUV WKH SHUVRQ ZKRVH QDPH VWDQGV ILUVW LQ WKH 5HJLVWHU RI 1&' +ROGHUV VKDOO EH
HQWLWOHG WR YRWH LQ UHVSHFW RI VXFK 1&'V HLWKHU E\ EHLQJ SUHVHQW LQ SHUVRQ RU ZKHUH
SUR[LHV DUH SHUPLWWHG E\ SUR[\ DW DQ\ PHHWLQJ RI WKH FRQFHUQHG 1&' +ROGHUV
VXPPRQHGIRUVXFKSXUSRVHDQGHYHU\VXFK1&'+ROGHUVKDOOEHHQWLWOHGWRRQHYRWHRQ
D VKRZ RI KDQGV DQG RQ D SROO KLV RU KHU YRWLQJ ULJKWV VKDOO EH LQ SURSRUWLRQ WR WKH
RXWVWDQGLQJ QRPLQDO YDOXH RI 1&'V KHOG E\ KLP RU KHU RQ HYHU\ UHVROXWLRQ SODFHG
EHIRUHVXFKPHHWLQJRIWKH1&'+ROGHUV
LY
6XEMHFWWRDSSOLFDEOHVWDWXWRU\UHJXODWRU\UHTXLUHPHQWVDQGWHUPVRIWKH'HEHQWXUH7UXVW
'HHGLQFOXGLQJUHTXLUHPHQWVRIWKH5%,1&'VPD\EHUROOHGRYHU ZLWKWKHFRQVHQWLQ
ZULWLQJRIWKHKROGHUVRIDWOHDVWWKUHHIRXUWKVRIWKHRXWVWDQGLQJDPRXQWRIWKH1&'VRU
ZLWK WKH VDQFWLRQ RI D VSHFLDO UHVROXWLRQ SDVVHG DW D PHHWLQJ RI WKH FRQFHUQHG 1&'
+ROGHUVDIWHUSURYLGLQJDWOHDVWGD\VSULRUQRWLFHIRUVXFKUROORYHUDQGLQDFFRUGDQFH
ZLWKWKH6(%,'HEW5HJXODWLRQV2XU&RPSDQ\VKDOOUHGHHPWKH1&'VRIDOOWKH1&'
+ROGHUVZKRKDYHQRWJLYHQWKHLUSRVLWLYHFRQVHQWWRWKHUROORYHU
Y
7KH DERYH ULJKWV RI 1&' +ROGHUV DUH PHUHO\ LQGLFDWLYH 7KH ILQDO ULJKWV RI WKH 1&'
+ROGHUV ZLOO EH DV SHU WKH WHUPV RI WKH 'UDIW 3URVSHFWXV WKLV 3URVSHFWXV DQG WKH
'HEHQWXUH7UXVW'HHGWREHH[HFXWHGE\RXU&RPSDQ\ZLWKWKH'HEHQWXUH7UXVWHH
1RWH±$µVSHFLDOUHVROXWLRQ¶IRUWKHSXUSRVHRIWKLVVHFWLRQLVDUHVROXWLRQSDVVHGDWD
PHHWLQJ RI 1&' +ROGHUV RI DW OHDVW WKUHHIRXUWKV RI WKH RXWVWDQGLQJ DPRXQW RI WKH
1&'VSUHVHQWDQGYRWLQJ
6XFFHVVLRQ
:KHUH1&'VDUHKHOGLQMRLQWQDPHVDQGRQHRIWKHMRLQWKROGHUVGLHVWKHVXUYLYRUVZLOOEH
UHFRJQL]HGDVWKH1&'+ROGHUVLQDFFRUGDQFHZLWK DSSOLFDEOHODZV,WZLOOEHVXIILFLHQWIRU
RXU &RPSDQ\ WR GHOHWH WKH QDPH RI WKH GHFHDVHG 1&' +ROGHU DIWHU REWDLQLQJ VDWLVIDFWRU\
HYLGHQFH RI KLV GHDWK SURYLGHG WKDW D WKLUG SHUVRQ PD\ FDOO RQ RXU &RPSDQ\ WR UHJLVWHU KLV
QDPHDVVXFFHVVRURIWKHGHFHDVHG1&'+ROGHUDIWHUREWDLQLQJHYLGHQFHVXFKDVSUREDWHRID
ZLOOIRUWKHSXUSRVHRISURYLQJKLVWLWOHWRWKH1&'V,QWKHHYHQWRIGHPLVHRIWKHVROHRUILUVW
KROGHU RI WKH 1&'V RXU &RPSDQ\ ZLOO UHFRJQL]H WKH H[HFXWRUV RU DGPLQLVWUDWRU RI WKH
GHFHDVHG1&'+ROGHUVRUWKHKROGHURIWKHVXFFHVVLRQFHUWLILFDWHRURWKHUOHJDOUHSUHVHQWDWLYH
DVKDYLQJWLWOHWRWKH1&'VRQO\LIVXFKH[HFXWRURUDGPLQLVWUDWRUREWDLQVDQGSURGXFHVSUREDWH
RI ZLOO RU OHWWHU RI DGPLQLVWUDWLRQ RU LV WKH KROGHU RI WKH VXFFHVVLRQ FHUWLILFDWH RU RWKHU OHJDO
UHSUHVHQWDWLRQDVWKHFDVHPD\EHIURPDQFRXUWRIFRPSHWHQWMXULVGLFWLRQLQ,QGLD2XU%RDUG
LQ WKHLU DEVROXWH GLVFUHWLRQ PD\ LQ DQ\ FDVH GLVSHQVH ZLWK SURGXFWLRQ RI SUREDWH RI ZLOO RU
OHWWHURIDGPLQLVWUDWLRQRUVXFFHVVLRQFHUWLILFDWHRURWKHUOHJDOUHSUHVHQWDWLRQ
1RPLQDWLRQ)DFLOLW\WR1&'+ROGHUV
L
7KHVROH1&'+ROGHURUILUVW1&'+ROGHUDORQJZLWKRWKHUMRLQW1&'+ROGHUVEHLQJ
LQGLYLGXDOVPD\QRPLQDWHDQ\RQHSHUVRQEHLQJDQLQGLYLGXDOZKRLQWKHHYHQWRI
GHDWKRIWKHVROHKROGHURUDOOWKHMRLQWKROGHUVDVWKHFDVHPD\EHVKDOOEHFRPHHQWLWOHG
WRWKH1&'$SHUVRQEHLQJDQRPLQHHEHFRPLQJHQWLWOHGWRWKH1&'E\UHDVRQRIWKH
GHDWK RI WKH 1&' +ROGHUV VKDOO EH HQWLWOHG WR WKH VDPH ULJKWV WR ZKLFK KH ZLOO EH
HQWLWOHGLIKHZHUHWKHUHJLVWHUHGKROGHURIWKH1&':KHUHWKHQRPLQHHLVDPLQRUWKH
1&'+ROGHUVPD\PDNHDQRPLQDWLRQWRDSSRLQWDQ\SHUVRQWREHFRPHHQWLWOHGWRWKH
1&'V LQ WKH HYHQW RI KLV GHDWK GXULQJ WKH PLQRULW\ $ QRPLQDWLRQ VKDOO VWDQG
UHVFLQGHGRQVDOHRID1&'E\WKHSHUVRQQRPLQDWLQJ$EX\HUZLOOEHHQWLWOHGWRPDNH
DIUHVKQRPLQDWLRQLQWKH PDQQHUSUHVFULEHG:KHQWKH 1&'LV KHOGE\WZR RU PRUH
SHUVRQVWKHQRPLQHHVKDOOEHFRPHHQWLWOHGWRUHFHLYHWKHDPRXQWRQO\RQWKHGHPLVHRI
DOO WKH 1&' +ROGHUV )UHVK QRPLQDWLRQV FDQ EH PDGH RQO\ LQ WKH SUHVFULEHG IRUP
DYDLODEOHRQUHTXHVWDWRXU&RPSDQ\¶VDGPLQLVWUDWLYHRIILFHRUDWVXFKRWKHUDGGUHVVHV
DVPD\EHQRWLILHGE\RXU&RPSDQ\
LL
7KH1&'+ROGHUVDUHDGYLVHGWRSURYLGHWKHVSHFLPHQVLJQDWXUHRIWKHQRPLQHHWRRXU
&RPSDQ\ WR H[SHGLWH WKH WUDQVPLVVLRQ RI WKH 1&'V WR WKH QRPLQHH LQ WKH HYHQW RI
GHPLVHRIWKH1&'+ROGHUV7KHVLJQDWXUHFDQEHSURYLGHGLQWKH$SSOLFDWLRQ)RUPRU
VXEVHTXHQWO\ DW WKH WLPH RI PDNLQJ IUHVK QRPLQDWLRQV 7KLV IDFLOLW\ RI SURYLGLQJ WKH
VSHFLPHQVLJQDWXUHRIWKHQRPLQHHLVSXUHO\RSWLRQDO
LLL
$Q\SHUVRQZKREHFRPHVDQRPLQHHXQGHUDQ\DSSOLFDEOHODZVVKDOORQWKHSURGXFWLRQ
RI VXFK HYLGHQFH DV PD\ EH UHTXLUHG E\ RXU &RPSDQ\¶V %RDUG RU &RPPLWWHH RI
'LUHFWRUVRUWKH&KDLUPDQDQG0DQDJLQJ'LUHFWRUDVWKHFDVHPD\EHHOHFWHLWKHU
D
WRUHJLVWHUKLPVHOIRUKHUVHOIDVWKHKROGHURIWKH1&'VRU
LY
Y
E
WRPDNHVXFKWUDQVIHURIWKH1&'VDVWKHGHFHDVHGKROGHUFRXOGKDYHPDGH
1RWZLWKVWDQGLQJ DQ\WKLQJ VWDWHG DERYH $SSOLFDQWV ZKR DUH DOORWWHG 1&'V LQ
GHPDWHULDOLVHG IRUP QHHG QRW PDNH D VHSDUDWH QRPLQDWLRQ ZLWK RXU &RPSDQ\
1RPLQDWLRQVUHJLVWHUHGZLWKWKHUHVSHFWLYH'HSRVLWRU\3DUWLFLSDQWRIWKH1&'+ROGHU
ZLOOSUHYDLO,IWKH1&'+ROGHUVUHTXLUHFKDQJLQJWKHLUQRPLQDWLRQWKH\DUHUHTXHVWHG
WRLQIRUP WKHLUUHVSHFWLYH 'HSRVLWRU\3DUWLFLSDQW)RU $SSOLFDQWV ZKRRSWWR KROGWKH
1&'VLQSK\VLFDOIRUPWKH$SSOLFDQWVDUHUHTXLUHWRILOOLQWKHGHWDLOVIRUµQRPLQHHV¶DV
SURYLGHGLQWKH$SSOLFDWLRQ)RUP
)XUWKHU RXU &RPSDQ\¶V %RDUG RU DQ\ GXO\ DXWKRULVHG FRPPLWWHH WKHUHRI DV WKH FDVH
PD\EHPD\DWDQ\WLPHJLYHQRWLFHUHTXLULQJDQ\QRPLQHHRIWKHGHFHDVHGKROGHUWR
FKRRVH HLWKHU WR EH UHJLVWHUHG KLPVHOI RU KHUVHOI RU WR WUDQVIHU WKH 1&'V DQG LI WKH
QRWLFHLVQRWFRPSOLHGZLWKZLWKLQDSHULRGRIGD\V RXU&RPSDQ\¶V%RDUGRU DQ\
GXO\ DXWKRULVHG FRPPLWWHH WKHUHRI DV WKH FDVH PD\ EH PD\ WKHUHDIWHU ZLWKKROG
SD\PHQW RI DOO LQWHUHVWV RU RWKHU PRQLHV SD\DEOH LQ UHVSHFW RI WKH 1&'V XQWLO WKH
UHTXLUHPHQWVRIWKHQRWLFHKDYHEHHQFRPSOLHGZLWK
'HEHQWXUH7UXVWHH
2XU&RPSDQ\KDVDSSRLQWHG *'$7UXVWHHVKLS/LPLWHGWRDFWDVWKHGHEHQWXUHWUXVWHHIRUWKH
1&'+ROGHUV2XU&RPSDQ\LQWHQGVWRHQWHULQWRD'HEHQWXUH7UXVW'HHGZLWKWKH'HEHQWXUH
7UXVWHH WKH WHUPV RI ZKLFK ZLOO JRYHUQ WKH DSSRLQWPHQW DQG IXQFWLRQLQJ RI WKH 'HEHQWXUH
7UXVWHH DQG VKDOO VSHFLI\ WKH SRZHUV DXWKRULWLHV DQG REOLJDWLRQV RI WKH 'HEHQWXUH 7UXVWHH
8QGHUWKHWHUPVRIWKH'HEHQWXUH7UXVW'HHGRXU&RPSDQ\ZLOOFRYHQDQWZLWKWKH'HEHQWXUH
7UXVWHH WKDW LW ZLOO SD\ WKH 1&' +ROGHUV WKH SULQFLSDO DPRXQW RQ WKH 1&'V RQ WKH UHOHYDQW
0DWXULW\'DWHVDQGDOVRWKDWLWZLOOSD\WKHLQWHUHVWGXHRQ1&'VRQWKHUDWHVSHFLILHGXQGHU
WKLV3URVSHFWXVXQGHUZKLFK$OORWPHQWKDVEHHQPDGH
7KH1&'+ROGHUVVKDOOZLWKRXWIXUWKHUDFWRUGHHGEHGHHPHGWRKDYHLUUHYRFDEO\JLYHQWKHLU
FRQVHQW WR WKH 'HEHQWXUH 7UXVWHH RU DQ\ RI WKHLU DJHQWV RU DXWKRULVHG RIILFLDOV WR GR DOO VXFK
DFWVGHHGVPDWWHUVDQGWKLQJVLQUHVSHFWRIRUUHODWLQJWRWKH1&'VDVWKH'HEHQWXUH7UXVWHH
PD\ LQ WKHLU DEVROXWH GLVFUHWLRQ GHHP QHFHVVDU\ RU UHTXLUH WR EH GRQH LQ WKH LQWHUHVW RI WKH
1&'+ROGHUV$Q\SD\PHQWPDGHE\RXU&RPSDQ\WRWKH'HEHQWXUH7UXVWHHRQEHKDOIRIWKH
1&'+ROGHUVVKDOOGLVFKDUJHRXU&RPSDQ\SURWDQWRWRWKH1&'+ROGHUV$OOWKHULJKWVDQG
UHPHGLHV RI WKH 1&' +ROGHUV VKDOO YHVW LQ DQG VKDOO EH H[HUFLVHG E\ WKH 'HEHQWXUH 7UXVWHH
ZLWKRXW UHIHUHQFH WR WKH 1&' +ROGHUV 1R 1&' +ROGHUVKDOO EH HQWLWOHG WR SURFHHG GLUHFWO\
DJDLQVWRXU&RPSDQ\XQOHVVWKH'HEHQWXUH7UXVWHHKDYLQJEHFRPHVRERXQGWRSURFHHGIDLOHG
WRGRVR
7KH'HEHQWXUH7UXVWHHZLOOSURWHFWWKHLQWHUHVWRIWKH1&'+ROGHUVLQWKHHYHQWRIGHIDXOWE\
RXU&RPSDQ\LQUHJDUGWRWLPHO\SD\PHQWRILQWHUHVWDQGUHSD\PHQWRISULQFLSDODQGWKH\ZLOO
WDNHQHFHVVDU\DFWLRQDWRXU&RPSDQ\¶VFRVW)XUWKHUWKH'HEHQWXUH7UXVWHHVKDOOHQVXUHWKDW
WKHDVVHWVRIRXU&RPSDQ\DUHVXIILFLHQWWRGLVFKDUJHWKHSULQFLSDODPRXQWDWDOOWLPHXQGHUWKLV
,VVXH
0LVFHOODQHRXV
/RDQDJDLQVW1&'V
7KH 1&'V FDQ EH SOHGJHG RU K\SRWKHFDWHG IRU REWDLQLQJ ORDQV IURP OHQGLQJ LQVWLWXWLRQV LQ
DFFRUGDQFHZLWKWKHOHQGLQJSROLFLHVRIWKHFRQFHUQHGLQVWLWXWLRQV
/LHQ
2XU&RPSDQ\VKDOOKDYHWKHULJKWRIVHWRIIDQGOLHQSUHVHQWDVZHOODVIXWXUHRQWKHPRQH\V
GXH DQG SD\DEOH WR WKH 1&' +ROGHU RU GHSRVLWV KHOG LQ WKH DFFRXQW RI WKH 1&' +ROGHU
ZKHWKHULQVLQJOHQDPHRUMRLQWQDPHWRWKHH[WHQWRIDOORXWVWDQGLQJGXHVE\WKH1&'+ROGHU
WRRXU&RPSDQ\
/LHQRQSOHGJHRI1&'V
6XEMHFWWRDSSOLFDEOHODZVRXU&RPSDQ\DWLWVGLVFUHWLRQPD\QRWHDOLHQRQSOHGJHRI1&'V
LIVXFKSOHGJHRI1&'LVDFFHSWHGE\DQ\EDQNLQVWLWXWLRQRURWKHUVIRUDQ\ORDQSURYLGHGWR
WKH1&'+ROGHUDJDLQVWSOHGJHRIVXFK1&'VDVSDUWRIWKHIXQGLQJ
-RLQWKROGHUV
:KHUHWZRRUPRUHSHUVRQVDUHKROGHUVRIDQ\1&'VWKH\VKDOOEHGHHPHGWRKROGWKHVDPH
DVMRLQWKROGHUVZLWKEHQHILWVRIVXUYLYRUVKLSVXEMHFWWRDSSOLFDEOHODZV
6KDULQJRILQIRUPDWLRQ
2XU &RPSDQ\ PD\ DW LWV RSWLRQ XVH LWV RZQ DV ZHOO DV H[FKDQJH VKDUH RU SDUW ZLWK DQ\
ILQDQFLDO RU RWKHU LQIRUPDWLRQ DERXW WKH 1&' +ROGHUV DYDLODEOH ZLWK RXU &RPSDQ\ DQG
DIILOLDWHV DQG RWKHU EDQNV ILQDQFLDO LQVWLWXWLRQV FUHGLW EXUHDXV DJHQFLHV VWDWXWRU\ ERGLHV DV
PD\EHUHTXLUHGDQGQHLWKHURXU&RPSDQ\QRULWVDIILOLDWHVQRUWKHLUDJHQWVVKDOOEHOLDEOHIRU
XVHRIWKHDIRUHVDLGLQIRUPDWLRQ
1RWLFHV
$OOQRWLFHVWRWKH1&'+ROGHUVUHTXLUHGWREHJLYHQE\RXU&RPSDQ\RUWKH'HEHQWXUH7UXVWHH
VKDOOEHSXEOLVKHGLQDWOHDVWRQHQDWLRQDOGDLO\QHZVSDSHUKDYLQJZLGHFLUFXODWLRQDQGRUZLOO
EHVHQWE\SRVWFRXULHUWRWKHUHJLVWHUHG1&'+ROGHUVIURPWLPHWRWLPH1RWLFHVPD\DOVREH
SURYLGHG E\ HPDLO WR 1&' +ROGHUV KROGLQJ 1&'V LQ GHPDWHULDOLVHG IRUP WR WKHLU HPDLO
DGGUHVVHVDVXSGDWHGZLWKWKH'HSRVLWRULHV
,VVXHRIGXSOLFDWH&RQVROLGDWHG1&'&HUWLILFDWHV
L
,IDQ\&RQVROLGDWHG1&'&HUWLILFDWHLVPXWLODWHGRUGHIDFHGLWPD\EHUHSODFHGE\RXU
&RPSDQ\ DJDLQVW WKH VXUUHQGHU RI VXFK &RQVROLGDWHG 1&' &HUWLILFDWHV SURYLGHG WKDW
ZKHUHWKH&RQVROLGDWHG1&'&HUWLILFDWHVDUHPXWLODWHGRUGHIDFHGWKH\ZLOOEHUHSODFHG
RQO\LIWKHFHUWLILFDWHQXPEHUVDQGWKHGLVWLQFWLYHQXPEHUVDUHOHJLEOH
LL
,IDQ\ &RQVROLGDWHG 1&'&HUWLILFDWHLV GHVWUR\HGVWROHQRUORVWWKHQRQSURGXFWLRQRI
SURRI WKHUHRI WR WKH ,VVXHU¶V VDWLVIDFWLRQ DQG RQ IXUQLVKLQJ VXFK LQGHPQLW\VHFXULW\
DQGRUGRFXPHQWVDVLWPD\GHHPDGHTXDWHGXSOLFDWH&RQVROLGDWHG1&'&HUWLILFDWHV
VKDOOEHLVVXHG
7KH DERYHUHTXLUHPHQW PD\EH PRGLILHGIURPWLPHWRWLPHDV SHUDSSOLFDEOHODZ
DQGSUDFWLFH
)XWXUHERUURZLQJV
2XU &RPSDQ\ VKDOO EH HQWLWOHG DW DQ\ WLPH LQ WKH IXWXUH GXULQJ WKH WHUP RI WKH 1&'V RU
WKHUHDIWHU WR ERUURZ RU UDLVH ORDQV RU FUHDWH HQFXPEUDQFHV RU DYDLO RI ILQDQFLDO DVVLVWDQFH LQ
DQ\IRUPRUH[WHQGJXDUDQWHHVLQIDYRXURIDQ\SHUVRQHQWLW\DQGDOVRWRLVVXHSURPLVVRU\QRWHV
RU ERQGV RU DQ\ RWKHU VHFXULWLHV LQ DQ\ IRUP PDQQHU UDQNLQJ DQG GHQRPLQDWLRQ ZKDWVRHYHU
DQGWRDQ\HOLJLEOHSHUVRQVZKDWVRHYHUDQGWRFKDQJHLWVFDSLWDOVWUXFWXUHLQFOXGLQJWKURXJKWKH
LVVXH RI VKDUHV RI DQ\ FODVV RQ VXFK WHUPV DQG FRQGLWLRQV DV RXU &RPSDQ\ PD\ GHHP
DSSURSULDWH ZLWKRXW UHTXLULQJ WKH FRQVHQW RI RU LQWLPDWLRQ WR WKH 1&' +ROGHUV RU WKH
'HEHQWXUH7UXVWHHLQWKLVFRQQHFWLRQ
-XULVGLFWLRQ
7KH1&'VWKH7UXVW'HHGDQGRWKHUUHOHYDQWGRFXPHQWVVKDOOEHJRYHUQHGE\DQGFRQVWUXHG
LQDFFRUGDQFHZLWKWKHODZVRI,QGLD)RUWKHSXUSRVHRIWKLV,VVXHDQGDQ\PDWWHUUHODWHGWRRU
DQFLOODU\WRWKH,VVXHWKHFRXUWVRI&KHQQDL,QGLDVKDOOKDYHH[FOXVLYHMXULVGLFWLRQ
5HVWULFWLRQRQWUDQVIHURI1&'V
7KHUH DUH QR UHVWULFWLRQV RQ WUDQVIHUV DQG WUDQVPLVVLRQ RI 1&'V DQG RQ WKHLU FRQVROLGDWLRQ
VSOLWWLQJH[FHSWDVPD\EHUHTXLUHGXQGHUDSSOLFDEOHVWDWXWRU\DQGRUUHJXODWRU\UHTXLUHPHQWV
LQFOXGLQJ DQ\ UHTXLUHPHQWV RI WKH 5%, DQGRU DV SURYLGHG LQ RXU $UWLFOHV RI $VVRFLDWLRQ
3OHDVHVHHWKHVHFWLRQWLWOHG³0DLQ3URYLVLRQVRI$UWLFOHVRI$VVRFLDWLRQRIWKH&RPSDQ\´RQ
SDJH
,668(352&('85(
7KLV VHFWLRQ DSSOLHV WR DOO $SSOLFDQWV $6%$ $SSOLFDQWV DQG $SSOLFDQWV ZKR DSSO\ WKURXJK WKH 'LUHFW 2QOLQH
$SSOLFDWLRQ0HFKDQLVPDVGHILQHGKHUHLQDIWHULQWKHHYHQWVXFKPHFKDQLVPLVSXWLQSODFHE\WKH%6(SULRUWR
WKH ,VVXH 2SHQLQJ 'DWH VKRXOG QRWH WKDW WKH $6%$ SURFHVV DQG WKH 'LUHFW 2QOLQH $SSOLFDWLRQ 0HFKDQLVP
LQYROYHVDSSOLFDWLRQSURFHGXUHVWKDWDUHGLIIHUHQWIURPWKHSURFHGXUHDSSOLFDEOHWRDOORWKHU$SSOLFDQWV3OHDVH
QRWHWKDWDOO$SSOLFDQWVDUHUHTXLUHGWRSD\WKHIXOO$SSOLFDWLRQ$PRXQWRUHQVXUHWKDWWKH$6%$$FFRXQWKDV
VXIILFLHQWFUHGLWEDODQFHVXFKWKDWWKHHQWLUH$SSOLFDWLRQ$PRXQWFDQEHEORFNHGE\WKH6&6%ZKLOHPDNLQJDQ
$SSOLFDWLRQ,QFDVHRI$6%$$SSOLFDQWVDQDPRXQWHTXLYDOHQWWRWKHIXOO$SSOLFDWLRQ$PRXQWZLOOEHEORFNHGE\
WKH6&6%VLQWKHUHOHYDQW$6%$$FFRXQWV
$6%$$SSOLFDQWVVKRXOGQRWHWKDWWKH\PD\VXEPLWWKHLU$6%$$SSOLFDWLRQVWRWKH0HPEHUVRIWKH6\QGLFDWHRU
7UDGLQJ0HPEHUVRQO\DWWKH6\QGLFDWH$6%$$SSOLFDWLRQ/RFDWLRQVRUGLUHFWO\WRWKH'HVLJQDWHG%UDQFKHVRI
WKH6&6%V$SSOLFDQWVRWKHUWKDQ$6%$$SSOLFDQWVDUHUHTXLUHGWRVXEPLWWKHLU$SSOLFDWLRQVWRWKH 0HPEHUVRI
WKH6\QGLFDWHRU7UDGLQJ0HPEHUVWKHDSSOLFDWLRQFHQWUHVRIWKH0HPEHUVRIWKH6\QGLFDWHZLOOEHPHQWLRQHGLQ
WKH$SSOLFDWLRQ)RUP RUPDNHRQOLQH$SSOLFDWLRQVXVLQJWKHRQOLQHSD\PHQWJDWHZD\RIWKH%6(
$SSOLFDQWV DUH DGYLVHG WR PDNH WKHLU LQGHSHQGHQW LQYHVWLJDWLRQV DQG HQVXUH WKDW WKHLU $SSOLFDWLRQV GR QRW
H[FHHGWKHLQYHVWPHQWOLPLWVRUPD[LPXPQXPEHURI1&'VWKDWFDQEHKHOGE\WKHPXQGHUDSSOLFDEOHODZRUDV
VSHFLILHGLQWKLV3URVSHFWXV
3OHDVHQRWHWKDWWKLVVHFWLRQKDVEHHQSUHSDUHGEDVHGRQWKHFLUFXODUQR&,5,0'')GDWHG-XO\
LVVXHGE\6(%,³'HEW$SSOLFDWLRQ&LUFXODU´7KHSURFHGXUHPHQWLRQHGLQWKLVVHFWLRQLVVXEMHFWWR
WKH%6(SXWWLQJLQSODFHWKHQHFHVVDU\V\VWHPVDQGLQIUDVWUXFWXUHIRULPSOHPHQWDWLRQRIWKHSURYLVLRQVRIWKH
DERYHPHQWLRQHGFLUFXODULQFOXGLQJWKHV\VWHPVDQGLQIUDVWUXFWXUHUHTXLUHGLQUHODWLRQWR$SSOLFDWLRQVPDGH
WKURXJKWKH'LUHFW2QOLQH$SSOLFDWLRQ0HFKDQLVPDQGWKHRQOLQHSD\PHQWJDWHZD\VWREHRIIHUHGE\WKH%6(
DQG DFFRUGLQJO\ LV VXEMHFW WR DQ\ IXUWKHU FODULILFDWLRQV QRWLILFDWLRQ PRGLILFDWLRQ GLUHFWLRQ LQVWUXFWLRQV
DQGRUFRUUHVSRQGHQFHWKDWPD\EHLVVXHGE\WKH%6(DQGRU6(%,
7KH0HPEHUVRIWKH6\QGLFDWHDQGWKH&RPSDQ\VKDOOQRWEHUHVSRQVLEOHRUOLDEOHIRUDQ\HUURUVRURPLVVLRQV
RQ WKH SDUW RI 7UDGLQJ 0HPEHUV LQ FRQQHFWLRQ ZLWK WKH UHVSRQVLELOLW\ RI 7UDGLQJ 0HPEHUV ZLWK UHJDUG WR
FROOHFWLRQ DQG XSORDG RI $SSOLFDWLRQV LQ WKLV ,VVXH RQ WKH HOHFWURQLF DSSOLFDWLRQ SODWIRUP SURYLGHG E\ WKH
%6()XUWKHU%6(ZLOOEHUHVSRQVLEOHIRUDGGUHVVLQJLQYHVWRUJULHYDQFHVDULVLQJIURPDSSOLFDWLRQVWKURXJK
WKHLUUHVSHFWLYH7UDGLQJ0HPEHUV
:KRFDQDSSO\"
7KHIROORZLQJFDWHJRULHVRILQYHVWRUVDUHHOLJLEOHWRDSSO\LQWKH,VVXH
&DWHJRU\,,QVWLWXWLRQDODQG1RQ,QVWLWXWLRQDO,QYHVWRUV
5HVLGHQW SXEOLF ILQDQFLDO LQVWLWXWLRQV FRPPHUFLDO EDQNV DQG UHJLRQDO UXUDO EDQNV LQFRUSRUDWHG LQ ,QGLD DQG
DXWKRUL]HGWRLQYHVWLQWKH1&'V
,QGLDQ SURYLGHQW IXQGV SHQVLRQ IXQGV VXSHUDQQXDWLRQ IXQGV DQG JUDWXLW\ IXQGV DXWKRUL]HG WR LQYHVW LQ WKH
1&'V
6WDWHLQGXVWULDOGHYHORSPHQWFRUSRUDWLRQV
,QGLDQYHQWXUHFDSLWDOIXQGVUHJLVWHUHGZLWK6(%,
,QGLDQLQVXUDQFHFRPSDQLHVUHJLVWHUHGZLWKWKH,5'$
1DWLRQDO,QYHVWPHQW)XQG
,QGLDQPXWXDOIXQGVUHJLVWHUHGZLWK6(%,
$OWHUQDWLYH,QYHVWPHQW)XQGVUHJLVWHUHGZLWK6(%,
,QVXUDQFH IXQGV VHW XS E\ DQG PDQDJHG E\ WKH DUP\ QDY\ RU DLU IRUFH RI WKH 8QLRQ RI ,QGLD RU E\ WKH
'HSDUWPHQWRI3RVWV*R,
&RPSDQLHV ERGLHV FRUSRUDWH DQG VRFLHWLHV UHJLVWHUHG XQGHU WKH DSSOLFDEOH ODZV LQ ,QGLD DQG DXWKRUL]HG WR
LQYHVWLQWKH1&'V
7UXVWVVHWWOHGXQGHUWKH,QGLDQ7UXVWV$FWDQGRWKHUSXEOLFSULYDWHFKDULWDEOHUHOLJLRXVWUXVWVVHWWOHGDQGRU
UHJLVWHUHGLQ,QGLDXQGHUDSSOLFDEOHODZVZKLFKDUHDXWKRUL]HGWRLQYHVWLQWKH1&'V
5HVLGHQW,QGLDQVFLHQWLILFDQGRULQGXVWULDOUHVHDUFKRUJDQL]DWLRQVDXWKRUL]HGWRLQYHVWLQWKH1&'V
6WDWXWRU\ERGLHVFRUSRUDWLRQV
&RRSHUDWLYHEDQNV
/LPLWHGOLDELOLW\SDUWQHUVKLSVIRUPHGDQGUHJLVWHUHGXQGHUWKHSURYLVLRQVRIWKH/LPLWHG/LDELOLW\3DUWQHUVKLS
$FW1RRIDXWKRUL]HGWRLQYHVWLQWKH1&'VDQG
3DUWQHUVKLSILUPVIRUPHGXQGHUDSSOLFDEOHODZVLQ,QGLDLQWKHQDPHRIWKHSDUWQHUVDXWKRUL]HGWRLQYHVWLQWKH
1&'V
&DWHJRU\,,±+LJK1HW:RUWK,QGLYLGXDOV
5HVLGHQW,QGLDQLQGLYLGXDOVDQG+LQGX8QGLYLGHG)DPLOLHVDSSO\LQJWKURXJKWKH.DUWDIRU1&'VDJJUHJDWLQJWRD
YDOXHRIPRUHWKDQ`DFURVVDOOVHULHVRI1&'V
&DWHJRU\,,,±5HWDLO,QGLYLGXDO,QYHVWRUV
5HVLGHQW,QGLDQLQGLYLGXDOVDQG+LQGX8QGLYLGHG)DPLOLHVDSSO\LQJWKURXJKWKH.DUWDIRU1&'VDJJUHJDWLQJWRD
YDOXHQRWPRUHWKDQ`DFURVVDOOVHULHVRI1&'V
3DUWLFLSDWLRQRIDQ\RIWKHDIRUHPHQWLRQHGFDWHJRULHVRISHUVRQVRUHQWLWLHVLVVXEMHFWWRWKHDSSOLFDEOHVWDWXWRU\
DQGRU UHJXODWRU\ UHTXLUHPHQWV LQ FRQQHFWLRQ ZLWK WKH VXEVFULSWLRQ WR ,QGLDQ VHFXULWLHV E\ VXFK FDWHJRULHV RI
SHUVRQVRUHQWLWLHV
$SSOLFDQWV DUH DGYLVHG WR HQVXUH WKDW WKH\ KDYH REWDLQHG WKH QHFHVVDU\ VWDWXWRU\ DQGRU UHJXODWRU\
SHUPLVVLRQVFRQVHQWVDSSURYDOV LQ FRQQHFWLRQ ZLWK DSSO\LQJ IRU VXEVFULELQJ WR RU VHHNLQJ DOORWPHQW RI
1&'VSXUVXDQWWRWKH,VVXH
7KH/HDG0DQDJHUVDQGLWVDVVRFLDWHVDQGDIILOLDWHVDUHSHUPLWWHGWRVXEVFULEHLQWKH,VVXH
7KHLQIRUPDWLRQEHORZLVJLYHQIRUWKHEHQHILWRI$SSOLFDQWV2XU&RPSDQ\DQGWKH/HDG0DQDJHUVDUHQRWOLDEOH
IRUDQ\DPHQGPHQWRUPRGLILFDWLRQRUFKDQJHVLQDSSOLFDEOHODZVRUUHJXODWLRQVZKLFKPD\RFFXUDIWHUWKHGDWH
RIWKLV3URVSHFWXV
+RZWRDSSO\"
$YDLODELOLW\RIWKH$EULGJHG3URVSHFWXVDQG$SSOLFDWLRQ)RUPV
3OHDVHQRWHWKDWWKHUHLVDVLQJOH$SSOLFDWLRQ)RUPIRU$6%$$SSOLFDQWVDVZHOODVQRQ$6%$$SSOLFDQWV
&RSLHVRIWKH $EULGJHG3URVSHFWXVFRQWDLQLQJWKHVDOLHQWIHDWXUHVRI WKH3URVSHFWXV WRJHWKHU ZLWK $SSOLFDWLRQ
)RUPVPD\EHREWDLQHGIURPRXU5HJLVWHUHG2IILFHWKH/HDG0DQDJHUVWKH/HDG%URNHUVDQGWKH'HVLJQDWHG
%UDQFKHVRIWKH6&6%V$GGLWLRQDOO\WKH3URVSHFWXVDQGWKH$SSOLFDWLRQ)RUPVZLOOEHDYDLODEOHIRUGRZQORDG
RQ WKH ZHEVLWH RI WKH %6( DW ZZZEVHLQGLDFRP DQG WKH ZHEVLWHV RI WKH /HDG 0DQDJHUV DW
ZZZLFLFLVHFXULWLHVFRPDQGZZZDNFDSLQGLDFRPUHVSHFWLYHO\
(OHFWURQLF$SSOLFDWLRQ)RUPVZLOODOVREHDYDLODEOHRQWKHZHEVLWHVRIWKH%6(
7UDGLQJ 0HPEHUV FDQ GRZQORDG $SSOLFDWLRQ )RUPV IURP WKH ZHEVLWH RI WKH %6( )XUWKHU $SSOLFDWLRQ )RUPV
ZLOODOVREHSURYLGHGWR7UDGLQJ0HPEHUVDWWKHLUUHTXHVW
0HWKRGVRI$SSOLFDWLRQ
$QHOLJLEOHLQYHVWRUFDQDSSO\LQWKH,VVXHE\RQHRIWKHIROORZLQJPHWKRGV
$SSOLFDWLRQVWKURXJKWKH$6%$SURFHVVDQG
1RQ$6%$$SSOLFDWLRQV
1RWH ± $SSOLFDQWV DUH UHTXHVWHG WR QRWH WKDW LQ WHUPV RI WKH 'HEW $SSOLFDWLRQ &LUFXODU 6(%, KDV PDQGDWHG
LVVXHUVWRSURYLGHWKURXJKDUHFRJQL]HGVWRFNH[FKDQJHZKLFKRIIHUVVXFKDIDFLOLW\DQRQOLQHLQWHUIDFHHQDEOLQJ
GLUHFWDSSOLFDWLRQE\LQYHVWRUVWRDSXEOLFLVVXHRIWKHLUGHEWVHFXULWLHVZLWKDQRQOLQHSD\PHQWIDFLOLW\³'LUHFW
2QOLQH $SSOLFDWLRQ 0HFKDQLVP´ ,Q WKLV UHJDUG 6(%, KDV WKURXJK WKH 'HEW $SSOLFDWLRQ &LUFXODU GLUHFWHG
UHFRJQL]HGVWRFNH[FKDQJHVLQ,QGLDWRSXWLQQHFHVVDU\V\VWHPVDQGLQIUDVWUXFWXUHIRUWKHLPSOHPHQWDWLRQRIWKH
'HEW $SSOLFDWLRQ &LUFXODU DQG WKH 'LUHFW 2QOLQH $SSOLFDWLRQ 0HFKDQLVP ,Q WKH HYHQW WKDW WKH %6( SXWV LQ
QHFHVVDU\ V\VWHPV LQIUDVWUXFWXUH DQG SURFHVVHV LQ SODFH VR DV WR HQDEOH WKH DGRSWLRQ RI WKH 'LUHFW 2QOLQH
$SSOLFDWLRQ0HFKDQLVPSULRUWRWKH,VVXH2SHQLQJ'DWHZHVKDOORIIHUHOLJLEOHLQYHVWRUVGHVLURXVRIDSSO\LQJLQ
WKH,VVXHWKHRSWLRQWRPDNH$SSOLFDWLRQVWKURXJKWKH'LUHFW2QOLQH$SSOLFDWLRQ0HFKDQLVP
,IVXFKV\VWHPVLQIUDVWUXFWXUHVRUSURFHVVHVDUHSXWLQSODFHE\WKH%6(SULRUWRWKHILOLQJRIWKH3URVSHFWXVWKH
PHWKRGV DQG SURFHGXUH UHODWLQJ WR WKH 'LUHFW 2QOLQH $SSOLFDWLRQ 0HFKDQLVP VKDOO EH VXLWDEO\ XSGDWHG LQ WKH
3URVSHFWXV+RZHYHULIVXFKV\VWHPVLQIUDVWUXFWXUHVRUSURFHVVHVDUHSXWLQSODFHE\WKH%6(DIWHUILOLQJRIWKH
3URVSHFWXV EXW SULRU WR WKH ,VVXH 2SHQLQJ 'DWH WKH PHWKRGV DQG SURFHGXUH UHODWLQJ WR WKH 'LUHFW 2QOLQH
$SSOLFDWLRQ0HFKDQLVPVKDOOEHZLGHO\GLVVHPLQDWHGE\XVWKURXJKDSXEOLFQRWLFHLQDUHSXWHGQDWLRQDOGDLO\
QHZVSDSHU
$SSOLFDWLRQVWKURXJKWKH$6%$SURFHVV
3OHDVHQRWHWKDWDSSOLFDWLRQWKURXJK$6%$LVRSWLRQDOIRUDOOFDWHJRULHVRI$SSOLFDQWV
$SSOLFDQWVZKRZLVKWRDSSO\WKURXJKWKH$6%$SURFHVVE\ILOOLQJLQSK\VLFDO$SSOLFDWLRQ)RUPZLOOKDYHWR
VHOHFW WKH $6%$ PHFKDQLVP LQ $SSOLFDWLRQ )RUP DQG SURYLGH QHFHVVDU\ GHWDLOV $SSOLFDQWV FDQ VXEPLW WKHLU
$SSOLFDWLRQVWKURXJK WKH $6%$SURFHVVE\VXEPLWWLQJWKH $SSOLFDWLRQ)RUPVWRWKH 'HVLJQDWHG%UDQFKRIWKH
6&6% ZLWK ZKRP WKH $6%$ $FFRXQW LV PDLQWDLQHG RU WKURXJK WKH 0HPEHUV RI WKH 6\QGLFDWH RU 7UDGLQJ
0HPEHUV$6%$$SSOLFDWLRQVWKURXJKWKH0HPEHUVRIWKH6\QGLFDWHDQG7UDGLQJ0HPEHUVVKDOOKHUHLQDIWHUEH
UHIHUUHGWRDVWKH³6\QGLFDWH$6%$´SULRUWRRURQWKH,VVXH&ORVLQJ'DWH$6%$$SSOLFDWLRQVWKURXJKWKH
0HPEHUV RI WKH 6\QGLFDWH DQG 7UDGLQJ 0HPEHUV LV SHUPLWWHG RQO\ DW WKH 6\QGLFDWH $6%$ $SSOLFDWLRQ
/RFDWLRQV0XPEDL&KHQQDL.RONDWD'HOKL$KPHGDEDG5DMNRW-DLSXU%DQJDORUH+\GHUDEDG3XQH
9DGRGDUDDQG6XUDW.LQGO\QRWHWKDW$SSOLFDWLRQ)RUPVVXEPLWWHGE\$6%$$SSOLFDQWVWR0HPEHUVRIWKH
6\QGLFDWHDQG WKH7UDGLQJ 0HPEHUVDW WKH 6\QGLFDWH $6%$ $SSOLFDWLRQ /RFDWLRQV ZLOOQRWEH DFFHSWHG LI WKH
6&6%ZLWKZKLFKWKH$6%$$FFRXQWDVVSHFLILHGLQWKH$SSOLFDWLRQ)RUPLVPDLQWDLQHGKDVQRWQDPHGDWOHDVW
RQHEUDQFKDWWKDWORFDWLRQIRUWKH0HPEHURIWKH6\QGLFDWHRUWKH7UDGLQJ0HPEHUVWRGHSRVLWWKH$SSOLFDWLRQ
)RUP D OLVW RI VXFK EUDQFKHV LV DYDLODEOH DW KWWSZZZVHELJRYLQVHELZHEKRPHOLVW5HFRJQLVHG
,QWHUPHGLDULHV
0HPEHUV RI WKH 6\QGLFDWH DQG 7UDGLQJ 0HPEHUV VKDOO XSRQ UHFHLSW RI $SSOLFDWLRQ )RUPV IURP $6%$
$SSOLFDQWVXSORDGWKHGHWDLOVRIWKHVH$SSOLFDWLRQ)RUPVWRWKHRQOLQHSODWIRUPVRIWKH%6( DQGVXEPLWWKHVH
$SSOLFDWLRQ)RUPVZLWKWKH6&6%ZLWKZKRPWKHUHOHYDQW$6%$$FFRXQWVDUHPDLQWDLQHGLQDFFRUGDQFHZLWK
WKH'HEW$SSOLFDWLRQ&LUFXODU7KH6&6%VKDOOEORFNDQDPRXQWLQWKH$6%$$FFRXQWHTXDOWRWKH$SSOLFDWLRQ
$PRXQWVSHFLILHGLQWKH$SSOLFDWLRQ)RUP
$6%$$SSOLFDWLRQVLQHOHFWURQLFPRGHZLOORQO\EHDYDLODEOHZLWKVXFK6&6%VZKRSURYLGHVXFKDQHOHFWURQLF
IDFLOLW\ ,Q FDVH RI $6%$ $SSOLFDWLRQV LQ VXFK HOHFWURQLF IRUP WKH $6%$ $SSOLFDQW VKDOO VXEPLW WKH
$SSOLFDWLRQ)RUPZLWKLQVWUXFWLRQWREORFNWKH$SSOLFDWLRQ$PRXQWHLWKHUWKURXJKWKHLQWHUQHWEDQNLQJIDFLOLW\
DYDLODEOHZLWKWKH6&6%RUVXFKRWKHUHOHFWURQLFDOO\HQDEOHGPHFKDQLVPIRUDSSO\LQJDQGEORFNLQJIXQGVLQWKH
$6%$$FFRXQWKHOGZLWK6&6%DVZRXOGEHPDGHDYDLODEOHE\WKHFRQFHUQHG6&6%
2XU&RPSDQ\'LUHFWRUVDIILOLDWHVDVVRFLDWHVDQGWKHLUUHVSHFWLYHGLUHFWRUVDQGRIILFHUVWKH/HDG0DQDJHUVDQG
WKH 5HJLVWUDU VKDOO QRW WDNH DQ\ UHVSRQVLELOLW\ IRU DFWV PLVWDNHV HUURUV RPLVVLRQV DQG FRPPLVVLRQV HWF LQ
UHODWLRQ WR $6%$ $SSOLFDWLRQV DFFHSWHG E\ 6&6%V DQG 7UDGLQJ 0HPEHUV $6%$ $SSOLFDWLRQV XSORDGHG E\
6&6%V$6%$$SSOLFDWLRQVDFFHSWHGEXWQRWXSORDGHGE\6&6%VRU$6%$$SSOLFDWLRQVDFFHSWHGDQGXSORDGHG
ZLWKRXWEORFNLQJIXQGVLQWKH$6%$$FFRXQWV,WVKDOOEHSUHVXPHGWKDWIRU$SSOLFDWLRQVXSORDGHGE\6&6%V
WKH$SSOLFDWLRQ$PRXQWKDVEHHQEORFNHGLQWKHUHOHYDQW$6%$$FFRXQW)XUWKHUDOOJULHYDQFHVDJDLQVW7UDGLQJ
0HPEHUVLQUHODWLRQWRWKH,VVXHVKRXOGEHPDGHE\$SSOLFDQWVGLUHFWO\WRWKH%6(
3OHDVHQRWHWKDW\RXFDQQRWDSSO\IRUWKH1&'VWKURXJKWKH$6%$SURFHVVLI\RXZLVKWREH$OORWWHGWKH
1&'VLQSK\VLFDOIRUP
1RQ$6%$$SSOLFDWLRQV
L 1RQ$6%$$SSOLFDWLRQVIRU$OORWPHQWRIWKH1&'VLQGHPDWHULDOLVHGIRUP
$SSOLFDQWVPD\VXEPLWGXO\ILOOHGLQ$SSOLFDWLRQ)RUPVHLWKHULQSK\VLFDORUGRZQORDGHG$SSOLFDWLRQ)RUPVWR
WKH0HPEHUVRIWKH6\QGLFDWHRUWKH7UDGLQJ0HPEHUVDFFRPSDQLHGE\DFFRXQWSD\HHFKHTXHVGHPDQGGUDIWV
SULRUWRRURQWKH,VVXH&ORVLQJ'DWH7KH0HPEHUVRIWKH6\QGLFDWHDQG7UDGLQJ0HPEHUVVKDOOXSORDGWKHQRQ
$6%$$SSOLFDWLRQRQWKHRQOLQHSODWIRUPVRIWKH%6(IROORZLQJZKLFKWKH\VKDOODFNQRZOHGJHWKHXSORDGLQJRI
WKH$SSOLFDWLRQ)RUPE\VWDPSLQJWKHDFNQRZOHGJPHQWVOLSZLWKWKHGDWHDQGUHWXUQLQJLWWRWKH$SSOLFDQW7KLV
DFNQRZOHGJPHQWVOLSVKDOOVHUYHDVWKHGXSOLFDWHRIWKH$SSOLFDWLRQ)RUPIRUWKHUHFRUGVRIWKH$SSOLFDQWDQGWKH
$SSOLFDQWVKRXOGSUHVHUYHWKLVDQGVKRXOGSURYLGHWKHVDPHIRUDQ\JULHYDQFHVUHODWLQJWRWKHLU$SSOLFDWLRQV
8SRQXSORDGLQJWKH$SSOLFDWLRQRQWKHRQOLQHSODWIRUPVRIWKH%6(WKH0HPEHUVRIWKH6\QGLFDWHDQG7UDGLQJ
0HPEHUV ZLOO VXEPLW WKH $SSOLFDWLRQ )RUPV DORQJ ZLWK WKH SD\PHQW LQVWUXPHQWV WR WKH (VFURZ &ROOHFWLRQ
%DQNVZKLFKZLOOUHDOLVHWKHSD\PHQWLQVWUXPHQWDQGVHQGWKH$SSOLFDWLRQGHWDLOVWRWKH5HJLVWUDU7KH0HPEHUV
RIWKH6\QGLFDWH7UDGLQJ0HPEHUVDUHUHTXHVWHGWRQRWHWKDWDOOSD\PHQWLQVWUXPHQWVDUHUHTXLUHGWREHEDQNHG
ZLWKRQO\WKHEDQNLQJEUDQFKHVRIWKH(VFURZ&ROOHFWLRQ%DQNVGHWDLOVRIZKLFKZLOOEHDYDLODEOHDWWKHZHEVLWHV
RI WKH /HDG 0DQDJHUV DW ZZZLFLFLVHFXULWLHVFRP DQG ZZZDNFDSLQGLDFRP UHVSHFWLYHO\ D OLQN IRU WKH VDLG
ZHEVLWHV ZLOO EH DYDLODEOH DW WKH ZHEVLWH RI WKH %6( DW ZZZEVHLQGLDFRP $FFRUGLQJO\ $SSOLFDQWV DUH
UHTXHVWHGWRQRWHWKDWWKH\PXVWVXEPLW$SSOLFDWLRQ)RUPVWR7UDGLQJ0HPEHUVZKRDUHORFDWHGLQWRZQVFLWLHV
ZKLFK KDYH DW OHDVW RQH EDQNLQJ EUDQFK RI WKH (VFURZ &ROOHFWLRQ %DQNV 7KH 5HJLVWUDU VKDOO PDWFK WKH
$SSOLFDWLRQ GHWDLOV DV UHFHLYHG IURP WKH RQOLQH SODWIRUPV RI WKH %6( ZLWK WKH $SSOLFDWLRQ $PRXQW GHWDLOV
UHFHLYHG IURP WKH (VFURZ &ROOHFWLRQ %DQNV IRU UHFRQFLOLDWLRQ RI IXQGV UHFHLYHG IURP WKH (VFURZ &ROOHFWLRQ
%DQNV,QFDVHRIGLVFUHSDQFLHVEHWZHHQWKHWZRGDWDEDVHVWKHGHWDLOVUHFHLYHGIURPWKHRQOLQHSODWIRUPVRIWKH
%6( ZLOO SUHYDLO 8SRQ $OORWPHQW WKH 5HJLVWUDU ZLOO FUHGLW WKH 1&'V LQ WKH GHPDW DFFRXQWV RI WKH VXFFHVVIXO
$SSOLFDQWVDVPHQWLRQHGLQWKH$SSOLFDWLRQ)RUP
3OHDVHQRWHWKDWQHLWKHURXU&RPSDQ\QRUWKH0HPEHUVRIWKH6\QGLFDWHQRUWKH5HJLVWUDUVKDOOEHUHVSRQVLEOH
IRUUHGUHVVDORIDQ\JULHYDQFHVWKDW$SSOLFDQWVPD\KDYHLQUHJDUGWRWKHQRQ$6%$$SSOLFDWLRQVPDGHWRWKH
7UDGLQJ0HPEHUVLQFOXGLQJZLWKRXWOLPLWDWLRQUHODWLQJWRQRQXSORDGRIWKH$SSOLFDWLRQVGDWD$OOJULHYDQFHV
DJDLQVW7UDGLQJ0HPEHUVLQUHODWLRQWRWKH,VVXHVKRXOGEHPDGHE\$SSOLFDQWVWRWKH%6(DVWKHFDVHPD\EH
LL 1RQ$6%$$SSOLFDWLRQVIRU$OORWPHQWRIWKH1&'VLQSK\VLFDOIRUP
$SSOLFDQWVFDQDOVRDSSO\IRU$OORWPHQWRIWKH1&'VLQSK\VLFDOIRUPE\VXEPLWWLQJGXO\ILOOHGLQ$SSOLFDWLRQ
)RUPVWRWKH0HPEHUVRIWKH6\QGLFDWHRUWKH7UDGLQJ0HPEHUVDORQJZLWKWKHDFFRPSDQ\LQJDFFRXQWSD\HH
FKHTXHV RU GHPDQG GUDIWV UHSUHVHQWLQJ WKH IXOO $SSOLFDWLRQ $PRXQW DQG .<& GRFXPHQWV DV VSHFLILHG LQ WKH
VHFWLRQV WLWOHG ³,VVXH 3URFHGXUH ± $SSOLFDWLRQV E\ YDULRXV $SSOLFDQW &DWHJRULHV´ DQG ³,VVXH 3URFHGXUH $GGLWLRQDOLQVWUXFWLRQV VSHFLILFIRU $SSOLFDQWV VHHNLQJ $OORWPHQW RIWKH 1&'VLQ SK\VLFDO IRUP´RQSDJHV
DQGUHVSHFWLYHO\7KH0HPEHUVRIWKH6\QGLFDWHDQG7UDGLQJ0HPEHUVVKDOOXSRQVXEPLVVLRQRIWKH
$SSOLFDWLRQ )RUPV WR WKHP YHULI\ DQG FKHFN WKH .<& GRFXPHQWV VXEPLWWHG E\ VXFK $SSOLFDQWV DQG XSORDG
GHWDLOV RI WKH $SSOLFDWLRQ RQ WKH RQOLQH SODWIRUP RI WKH %6( IROORZLQJ ZKLFK WKH\ VKDOO DFNQRZOHGJH WKH
XSORDGLQJ RI WKH $SSOLFDWLRQ)RUP E\ VWDPSLQJ WKH DFNQRZOHGJPHQW VOLS ZLWK WKH GDWH DQG UHWXUQLQJ LW WRWKH
$SSOLFDQW7KLVDFNQRZOHGJPHQWVOLSVKDOOVHUYHDVWKHGXSOLFDWHRIWKH$SSOLFDWLRQ)RUPIRUWKHUHFRUGVRIWKH
$SSOLFDQW DQG WKH $SSOLFDQW VKDOO SUHVHUYH WKLV DQG VKRXOG SURYLGH WKH VDPH IRU DQ\ TXHULHV UHODWLQJ WR QRQ
$OORWPHQWRI1&'VLQWKH,VVXH
8SRQXSORDGLQJRIWKH$SSOLFDWLRQGHWDLOVWKH0HPEHUVRIWKH6\QGLFDWHDQG7UDGLQJ0HPEHUVZLOOVXEPLWWKH
$SSOLFDWLRQ)RUPVDORQJZLWKWKHSD\PHQWLQVWUXPHQWVWRWKH(VFURZ&ROOHFWLRQ%DQNVZKLFKZLOOUHDOLVHWKH
SD\PHQWLQVWUXPHQWDQGVHQGWKH$SSOLFDWLRQ)RUPDQGWKH.<&GRFXPHQWVWRWKH5HJLVWUDU7KH5HJLVWUDUVKDOO
FKHFNWKH.<&GRFXPHQWVVXEPLWWHGDQGPDWFK$SSOLFDWLRQGHWDLOVDVUHFHLYHGIURPWKHRQOLQHSODWIRUPVRIWKH
%6(ZLWKWKH$SSOLFDWLRQ$PRXQWGHWDLOVUHFHLYHGIURPWKH(VFURZ&ROOHFWLRQ%DQNVIRUUHFRQFLOLDWLRQRIIXQGV
UHFHLYHG IURP WKH (VFURZ &ROOHFWLRQ %DQNV ,Q FDVH RI GLVFUHSDQFLHV EHWZHHQ WKH WZR GDWD EDVHV WKH GHWDLOV
UHFHLYHGIURPWKHRQOLQHSODWIRUPVRIWKH%6(ZLOOSUHYDLO7KH0HPEHUVRIWKH6\QGLFDWH7UDGLQJ0HPEHUVDUH
UHTXHVWHG WR QRWH WKDW DOO $SSOLFDQWV DUH UHTXLUHG WR EH EDQNHG ZLWK RQO\ WKH EDQNLQJ EUDQFKHV RI (VFURZ
&ROOHFWLRQ %DQNV GHWDLOV RI ZKLFK ZLOO EH DYDLODEOH DW WKH ZHEVLWHV RI WKH /HDG 0DQDJHUV DW
ZZZLFLFLVHFXULWLHVFRPDQGZZZDNFDSLQGLDFRPUHVSHFWLYHO\DOLQNIRUWKHVDLGZHEVLWHVZLOOEHDYDLODEOHDW
WKH ZHEVLWH RI WKH %6( DW ZZZEVHLQGLDFRP $FFRUGLQJO\ $SSOLFDQWV DUH UHTXHVWHG WR QRWH WKDW WKH\ PXVW
VXEPLW$SSOLFDWLRQ)RUPVWR7UDGLQJ0HPEHUVZKRDUHORFDWHGLQWRZQVFLWLHVZKLFKKDYHDWOHDVWRQHEDQNLQJ
EUDQFK RI WKH (VFURZ &ROOHFWLRQ %DQNV 8SRQ $OORWPHQW WKH 5HJLVWUDU ZLOO GLVSDWFK 1&' &HUWLILFDWHV WR WKH
VXFFHVVIXO$SSOLFDQWVWRWKHLUDGGUHVVHVDVSURYLGHGLQWKH$SSOLFDWLRQ)RUP3OHDVHQRWHWKDWLQWKHHYHQWWKDW
.<& GRFXPHQWV RI DQ $SSOLFDQW DUH QRW LQ RUGHU WKH 5HJLVWUDU ZLOO ZLWKKROG WKH GLVSDWFK RI 1&'
&HUWLILFDWHV SHQGLQJ UHFHLSW RI FRPSOHWH .<& GRFXPHQWV IURP VXFK $SSOLFDQW ,Q VXFK FLUFXPVWDQFHV
VXFFHVVIXO$SSOLFDQWVVKRXOGSURYLGHFRPSOHWH.<&GRFXPHQWVWRWKH5HJLVWUDUDWWKHHDUOLHVW
3OHDVHQRWHWKDWLQVXFKDQHYHQWDQ\GHOD\E\WKH$SSOLFDQWWRSURYLGHFRPSOHWH.<&GRFXPHQWVWRWKH
5HJLVWUDU ZLOO EH DW WKH $SSOLFDQW¶V VROH ULVN DQG QHLWKHU RXU &RPSDQ\ WKH 5HJLVWUDU WKH (VFURZ
&ROOHFWLRQ %DQNV RU WKH 0HPEHUV RI WKH 6\QGLFDWH ZLOO EH OLDEOH WR FRPSHQVDWH WKH $SSOLFDQWV IRU DQ\
ORVVHVFDXVHGWRWKHPGXHWRDQ\VXFKGHOD\RUOLDEOHWRSD\DQ\LQWHUHVWRQWKH$SSOLFDWLRQ$PRXQWVIRU
VXFKSHULRGGXULQJZKLFKWKH1&'&HUWLILFDWHVDUHZLWKKHOGE\WKH5HJLVWUDU)XUWKHURXU&RPSDQ\ZLOO
QRWEHOLDEOHIRUDQ\GHOD\VLQSD\PHQWRILQWHUHVWRQWKH1&'VDOORWWHGWRVXFK$SSOLFDQWVDQGZLOOQRWEH
OLDEOHWRFRPSHQVDWHVXFK$SSOLFDQWVIRUDQ\ORVVHVFDXVHGWRWKHPGXHWRDQ\VXFKGHOD\RUOLDEOHWRSD\
DQ\LQWHUHVWIRUVXFKGHOD\LQSD\PHQWRILQWHUHVWRQWKH1&'V
0HPEHUVRIWKH6\QGLFDWHRU7UDGLQJ0HPEHUVDUHDOVRUHTXLUHGWRHQVXUHWKDWWKH$SSOLFDQWVDUHFRPSHWHQWWR
FRQWUDFW XQGHU WKH ,QGLDQ &RQWUDFW $FW LQFOXGLQJ PLQRUV DSSO\LQJ WKURXJK JXDUGLDQV DW WKH WLPH RI
DFFHSWDQFHRIWKH$SSOLFDWLRQ)RUPV
7R VXSSOHPHQW WKH IRUHJRLQJ WKH PRGH DQG PDQQHU RI $SSOLFDWLRQ DQG VXEPLVVLRQ RI $SSOLFDWLRQ )RUPV LV
LOOXVWUDWHGLQWKHIROORZLQJFKDUW
0RGHRI$SSOLFDWLRQ
$6%$$SSOLFDWLRQV
1RQ$6%$$SSOLFDWLRQV
7RZKRPWKH$SSOLFDWLRQ)RUPKDVWREHVXEPLWWHG
LWRWKH0HPEHUVRIWKH6\QGLFDWHRQO\DWWKH6\QGLFDWH$6%$$SSOLFDWLRQ/RFDWLRQVRU
LLWRWKH'HVLJQDWHG%UDQFKHVRIWKH6&6%VZKHUHWKH$6%$$FFRXQWLVPDLQWDLQHGRU
LLLWR7UDGLQJ0HPEHUVRQO\DWWKH6\QGLFDWH$6%$$SSOLFDWLRQ/RFDWLRQV
LWRWKH0HPEHUVRIWKH6\QGLFDWHRU
LLWR7UDGLQJ0HPEHUV
$SSOLFDWLRQ6L]H
$SSOLFDWLRQVDUHUHTXLUHGWREHIRUDPLQLPXPRI` 1&'VIRUDOOVHULHVRI1&'VQDPHO\6HULHV,
6HULHV,,6HULHV,,,6HULHV,96HULHV9DQG6HULHV9,HLWKHUWDNHQLQGLYLGXDOO\RUFROOHFWLYHO\DQGLQPXOWLSOHVRI
`2QH1&'WKHUHDIWHU
$33/,&$7,216%<9$5,286$33/,&$17&$7(*25,(6
$SSOLFDWLRQVE\0XWXDO)XQGV
$ PXWXDO IXQG VFKHPH FDQQRW LQYHVW PRUH WKDQ RI LWV 1$9 LQ GHEW LQVWUXPHQWV LVVXHG E\ D VLQJOH
FRPSDQ\ ZKLFK DUH UDWHG QRW EHORZ LQYHVWPHQW JUDGH E\ D FUHGLW UDWLQJ DJHQF\ DXWKRULVHG WR FDUU\ RXW VXFK
DFWLYLW\6XFKLQYHVWPHQWOLPLWPD\EHH[WHQGHGWRRIWKH1$9RIWKHVFKHPHZLWKWKHSULRUDSSURYDORI
WKHERDUGRIWUXVWHHVDQGWKHERDUGRIDVVHWPDQDJHPHQWFRPSDQ\
$VHSDUDWH$SSOLFDWLRQFDQEHPDGHLQUHVSHFWRIHDFKVFKHPHRIDQ,QGLDQPXWXDOIXQGUHJLVWHUHGZLWK6(%,DQG
VXFK$SSOLFDWLRQVVKDOOQRWEHWUHDWHGDVPXOWLSOH$SSOLFDWLRQV$SSOLFDWLRQVPDGHE\WKH$0&VRUFXVWRGLDQVRI
D0XWXDO)XQGVKDOOFOHDUO\LQGLFDWHWKHQDPHRIWKHFRQFHUQHGVFKHPHIRUZKLFKWKH$SSOLFDWLRQLVEHLQJPDGH
$Q$SSOLFDWLRQV)RUPE\DPXWXDOIXQGUHJLVWHUHGZLWK6(%,PXVWEHDOVRDFFRPSDQLHGE\FHUWLILHGWUXHFRSLHV
RI L LWV 6(%, UHJLVWUDWLRQ FHUWLILFDWH LL WKH WUXVW GHHG LQ UHVSHFW RI VXFK PXWXDO IXQG LLL D UHVROXWLRQ
DXWKRULVLQJ LQYHVWPHQW DQG FRQWDLQLQJ RSHUDWLQJ LQVWUXFWLRQV DQG LY VSHFLPHQ VLJQDWXUHV RI DXWKRUL]HG
VLJQDWRULHV)DLOLQJWKLVRXU&RPSDQ\UHVHUYHVWKHULJKWWRDFFHSWRUUHMHFWDQ\$SSOLFDWLRQIURPD0XWXDO)XQG
LQZKROHRULQSDUWLQHLWKHUFDVHZLWKRXWDVVLJQLQJDQ\UHDVRQWKHUHIRU
$SSOLFDWLRQE\6FKHGXOHG&RPPHUFLDO%DQNV
6FKHGXOHG &RPPHUFLDO %DQNV FDQ DSSO\ LQ WKLV ,VVXH EDVHG XSRQ WKHLU RZQ LQYHVWPHQW OLPLWV DQG DSSURYDOV
$SSOLFDWLRQV E\ WKHP IRU $OORWPHQW RI WKH 1&'V PXVW EH DFFRPSDQLHG E\ FHUWLILHG WUXH FRSLHV RI L D ERDUG
UHVROXWLRQ DXWKRULVLQJ LQYHVWPHQWV LL D OHWWHU RI DXWKRULVDWLRQ DQG LLL VSHFLPHQ VLJQDWXUHV RI DXWKRULVHG
SHUVRQV )DLOLQJ WKLV RXU &RPSDQ\ UHVHUYHV WKH ULJKW WR DFFHSW RU UHMHFW DQ\ $SSOLFDWLRQ IURP D 6FKHGXOHG
&RPPHUFLDO%DQNLQZKROHRULQSDUWLQHLWKHUFDVHZLWKRXWDVVLJQLQJDQ\UHDVRQWKHUHIRU
$SSOLFDWLRQE\,QVXUDQFH&RPSDQLHVUHJLVWHUHGZLWKWKH,5'$
,QFDVHRI$SSOLFDWLRQVIRU$OORWPHQWRIWKH1&'VPDGHE\DQLQVXUDQFHFRPSDQ\UHJLVWHUHGZLWKWKH,5'$D
FHUWLILHGFRS\RILWVFHUWLILFDWHRIUHJLVWUDWLRQLVVXHGE\,5'$PXVWEHORGJHGDORQJZLWK$SSOLFDWLRQ)RUP7KH
$SSOLFDWLRQVPXVWEHDFFRPSDQLHGE\FHUWLILHGFRSLHVRILLWV0HPRUDQGXPDQG$UWLFOHVRI$VVRFLDWLRQLLD
SRZHU RI DWWRUQH\ LLL D UHVROXWLRQ DXWKRULVLQJ LQYHVWPHQW DQG FRQWDLQLQJ RSHUDWLQJ LQVWUXFWLRQV DQG LY
VSHFLPHQVLJQDWXUHVRIDXWKRUL]HGVLJQDWRULHV)DLOLQJWKLVRXU&RPSDQ\UHVHUYHVWKHULJKWWRDFFHSWRUUHMHFWDQ\
$SSOLFDWLRQLQZKROHRULQSDUWLQHLWKHUFDVHZLWKRXWDVVLJQLQJDQ\UHDVRQWKHUHIRU
$SSOLFDWLRQVE\,QGLDQYHQWXUHFDSLWDOIXQGVUHJLVWHUHGZLWK6(%,
$SSOLFDWLRQVPDGHE\DQH[LVWLQJ9HQWXUH&DSLWDO)XQGHOLJLEOHWRLQYHVWLQDFFRUGDQFHZLWKWKH6HFXULWLHVDQG
([FKDQJH %RDUG RI ,QGLD 9HQWXUH &DSLWDO )XQGV 5HJXODWLRQV IRU $OORWPHQW RI WKH 1&'V PXVW EH
DFFRPSDQLHGE\FHUWLILHGWUXHFRSLHVRILWKH6(%,UHJLVWUDWLRQFHUWLILFDWHRIVXFK9HQWXUH&DSLWDO)XQGLLD
UHVROXWLRQ DXWKRULVLQJ WKH LQYHVWPHQW DQG FRQWDLQLQJ RSHUDWLQJ LQVWUXFWLRQV DQG LLL VSHFLPHQ VLJQDWXUHV RI
DXWKRULVHG SHUVRQV )DLOLQJ WKLV RXU &RPSDQ\ UHVHUYHV WKH ULJKW WR DFFHSW RU UHMHFWDQ\ $SSOLFDWLRQV IURP DQ
9HQWXUH&DSLWDO)XQGLQZKROHRULQSDUWLQHLWKHUFDVHZLWKRXWDVVLJQLQJDQ\UHDVRQWKHUHRI
9HQWXUH &DSLWDO )XQGV DSSO\LQJ IRU $OORWPHQW RI WKH 1&'V VKDOO DW DOO WLPH FRPSO\ ZLWK WKH FRQGLWLRQV IRU
FDWHJRULHV DV SHU WKHLU 6(%, UHJLVWUDWLRQ FHUWLILFDWH DQG WKH 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD 9HQWXUH
&DSLWDO)XQGV5HJXODWLRQV
$SSOLFDWLRQVE\$OWHUQDWLYH,QYHVWPHQWV)XQGV
$SSOLFDWLRQVPDGHE\DQ$OWHUQDWLYH,QYHVWPHQWV)XQGHOLJLEOHWRLQYHVWLQDFFRUGDQFHZLWKWKH6HFXULWLHVDQG
([FKDQJH%RDUGRI,QGLD$OWHUQDWH,QYHVWPHQW)XQGV5HJXODWLRQVIRU$OORWPHQWRIWKH1&'VPXVWEH
DFFRPSDQLHG E\ FHUWLILHG WUXH FRSLHV RIL WKH 6(%, UHJLVWUDWLRQ FHUWLILFDWH RI VXFK $OWHUQDWLYH ,QYHVWPHQW
)XQGLL D UHVROXWLRQ DXWKRULVLQJ WKH LQYHVWPHQW DQG FRQWDLQLQJ RSHUDWLQJ LQVWUXFWLRQV DQG LLL VSHFLPHQ
VLJQDWXUHV RI DXWKRULVHG SHUVRQV )DLOLQJ WKLV RXU &RPSDQ\ UHVHUYHV WKH ULJKW WR DFFHSW RU UHMHFW DQ\
$SSOLFDWLRQV IURP DQ $OWHUQDWLYH ,QYHVWPHQW )XQG LQ ZKROH RU LQ SDUW LQ HLWKHU FDVH ZLWKRXW DVVLJQLQJ DQ\
UHDVRQWKHUHRI
$OWHUQDWLYH,QYHVWPHQW)XQGVDSSO\LQJIRU$OORWPHQWRIWKH1&'VVKDOODWDOOWLPHFRPSO\ZLWKWKHFRQGLWLRQV
IRU FDWHJRULHV DV SHU WKHLU 6(%, UHJLVWUDWLRQ FHUWLILFDWH DQG WKH 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD
$OWHUQDWH,QYHVWPHQW)XQGV5HJXODWLRQV
$SSOLFDWLRQVE\6WDWH,QGXVWULDO'HYHORSPHQW&RUSRUDWLRQV
$SSOLFDWLRQVPDGHE\VWDWHLQGXVWULDOGHYHORSPHQWFRUSRUDWLRQVIRU$OORWPHQWRIWKH1&'VPXVWEHDFFRPSDQLHG
E\ FHUWLILHG WUXH FRSLHV RI L DQ\ $FWUXOHV XQGHU ZKLFK WKH VXFK VWDWH LQGXVWULDO GHYHORSPHQW FRUSRUDWLRQ LV
LQFRUSRUDWHGDQGLWVFRQVWLWXWLRQDOGRFXPHQWVLLDUHVROXWLRQRIWKHERDUGRIGLUHFWRUVRIVXFK VWDWHLQGXVWULDO
GHYHORSPHQWFRUSRUDWLRQDXWKRULVLQJLQYHVWPHQWVDQGLLLVSHFLPHQVLJQDWXUHRIDXWKRUL]HGSHUVRQV)DLOLQJWKLV
RXU &RPSDQ\ UHVHUYHV WKH ULJKW WR DFFHSW RU UHMHFW DQ\ $SSOLFDWLRQV IURP VXFK VWDWH LQGXVWULDO GHYHORSPHQW
FRUSRUDWLRQIRU$OORWPHQWRIWKH1&'VLQZKROHRULQSDUWLQHLWKHUFDVHZLWKRXWDVVLJQLQJDQ\UHDVRQWKHUHIRU
$SSOLFDWLRQVE\VWDWXWRU\ERGLHVFRUSRUDWLRQV
$SSOLFDWLRQV PDGH E\ VWDWXWRU\ ERGLHV FRUSRUDWLRQV IRU $OORWPHQW RI WKH 1&'V PXVW EH DFFRPSDQLHG E\
FHUWLILHGWUXH FRSLHVRIL DQ\ $FWUXOHV XQGHU ZKLFK WKH VXFK $SSOLFDQW LV LQFRUSRUDWHG DQG LWV FRQVWLWXWLRQDO
GRFXPHQWV LL D UHVROXWLRQ RI WKH ERDUG RI GLUHFWRUV RI VXFK $SSOLFDQW DXWKRULVLQJ LQYHVWPHQWV DQG LLL
VSHFLPHQVLJQDWXUHVRIDXWKRUL]HGSHUVRQV)DLOLQJWKLVRXU&RPSDQ\UHVHUYHVWKHULJKWWRDFFHSWRUUHMHFWDQ\
$SSOLFDWLRQV IURP VXFK $SSOLFDQWV IRU $OORWPHQW RI WKH 1&'V LQ ZKROH RU LQ SDUW LQ HLWKHU FDVH ZLWKRXW
DVVLJQLQJDQ\UHDVRQWKHUHIRU
$SSOLFDWLRQVE\3XEOLF)LQDQFLDO,QVWLWXWLRQV
$SSOLFDWLRQVE\3XEOLF)LQDQFLDO,QVWLWXWLRQVPXVWEH DFFRPSDQLHGE\FHUWLILHGWUXHFRSLHVRILDQ\$FWUXOHV
XQGHU ZKLFK VXFK $SSOLFDQW LV LQFRUSRUDWHG LL D UHVROXWLRQ RI WKH ERDUG RI GLUHFWRUV RI VXFK $SSOLFDQW
DXWKRULVLQJLQYHVWPHQWVDQGLLLVSHFLPHQVLJQDWXUH RIDXWKRUL]HGSHUVRQVRIVXFK$SSOLFDQW)DLOLQJWKLVRXU
&RPSDQ\ UHVHUYHV WKH ULJKW WR DFFHSW RU UHMHFW DQ\ $SSOLFDWLRQV IRU $OORWPHQW RI WKH 1&'V IURP D 3XEOLF
)LQDQFLDO,QVWLWXWLRQLQZKROHRULQSDUWLQHLWKHUFDVHZLWKRXWDVVLJQLQJDQ\UHDVRQWKHUHIRU
$SSOLFDWLRQV PDGH E\ FRPSDQLHV /LPLWHG /LDELOLW\ 3DUWQHUVKLSV DQG ERGLHV FRUSRUDWH UHJLVWHUHG
XQGHUDSSOLFDEOHODZVLQ,QGLD
$SSOLFDWLRQVPDGHE\FRPSDQLHV/LPLWHG/LDELOLW\3DUWQHUVKLSVDQGERGLHVFRUSRUDWHIRU$OORWPHQWRIWKH1&'V
PXVWEHDFFRPSDQLHGE\FHUWLILHGWUXHFRSLHVRILDQ\$FWUXOHVXQGHUZKLFKVXFK$SSOLFDQWLVLQFRUSRUDWHG
LLDUHVROXWLRQRIWKHERDUGRIGLUHFWRUVRIVXFK$SSOLFDQWDXWKRULVLQJLQYHVWPHQWVDQGLLLVSHFLPHQVLJQDWXUH
RI DXWKRUL]HG SHUVRQV RI VXFK $SSOLFDQW )DLOLQJ WKLV RXU &RPSDQ\ UHVHUYHV WKH ULJKW WR DFFHSW RU UHMHFW DQ\
$SSOLFDWLRQV IURP VXFK $SSOLFDQWV IRU $OORWPHQW RI WKH 1&'V LQ ZKROH RU LQ SDUW LQ HLWKHU FDVH ZLWKRXW
DVVLJQLQJDQ\UHDVRQWKHUHIRU
$SSOLFDWLRQVPDGHE\6RFLHWLHVUHJLVWHUHGXQGHUDSSOLFDEOHODZV
$SSOLFDWLRQV PDGH E\ D UHJLVWHUHG VRFLHW\ IRU $OORWPHQW RI WKH 1&'V PXVW EH DFFRPSDQLHG E\ FHUWLILHG WUXH
FRSLHVRILDQ\$FWUXOHVXQGHUZKLFKVXFKVRFLHW\LVUHJLVWHUHGDQGWKHUHJLVWUDWLRQFHUWLILFDWHLLDUHVROXWLRQ
RI WKH ERDUG RI GLUHFWRUV RI VXFK VRFLHW\ DXWKRULVLQJ LQYHVWPHQWV DQG LLL VSHFLPHQ VLJQDWXUH RI DXWKRUL]HG
SHUVRQVRIVXFK$SSOLFDQW)DLOLQJWKLVRXU&RPSDQ\UHVHUYHVWKHULJKWWRDFFHSWRUUHMHFWDQ\$SSOLFDWLRQVIRU
$OORWPHQWRIWKH1&'VLQZKROHRULQSDUWLQHLWKHUFDVHZLWKRXWDVVLJQLQJDQ\UHDVRQWKHUHIRU
$SSOLFDWLRQVXQGHUDSRZHURIDWWRUQH\
,QFDVHRI$SSOLFDWLRQVPDGHSXUVXDQWWRDSRZHURIDWWRUQH\E\$SSOLFDQWVIURP&DWHJRU\,DFHUWLILHGFRS\RI
WKHSRZHURIDWWRUQH\RUWKHUHOHYDQWUHVROXWLRQRUDXWKRULW\DVWKHFDVHPD\EHDORQJZLWKDFHUWLILHGFRS\RIWKH
PHPRUDQGXP RI DVVRFLDWLRQ DQG DUWLFOHV RI DVVRFLDWLRQ DQGRU E\H ODZV PXVW EH ORGJHG DORQJ ZLWK WKH
$SSOLFDWLRQ)RUP)DLOLQJWKLVRXU&RPSDQ\UHVHUYHVWKHULJKWWRDFFHSWRUUHMHFWDQ\$SSOLFDWLRQLQZKROHRULQ
SDUWLQHLWKHUFDVHZLWKRXWDVVLJQLQJDQ\UHDVRQWKHUHIRU
,QFDVHRI$SSOLFDWLRQVPDGHSXUVXDQWWRDSRZHURIDWWRUQH\E\$SSOLFDQWVIURP&DWHJRU\,,DQG&DWHJRU\,,,D
FHUWLILHGFRS\RIWKHSRZHURIDWWRUQH\PXVWEHORGJHGDORQJZLWKWKH$SSOLFDWLRQ)RUP
,QFDVHRI$6%$$SSOLFDWLRQVPDGHSXUVXDQWWRDSRZHURIDWWRUQH\DFHUWLILHGFRS\RIWKHSRZHURIDWWRUQH\
PXVW EH ORGJHG DORQJ ZLWK WKH $SSOLFDWLRQ )RUP )DLOLQJ WKLV RXU &RPSDQ\ LQ FRQVXOWDWLRQ ZLWK WKH /HDG
0DQDJHUVUHVHUYHVWKHULJKWWRUHMHFWVXFK$SSOLFDWLRQV
2XU&RPSDQ\LQLWVDEVROXWHGLVFUHWLRQUHVHUYHVWKHULJKWWRUHOD[WKHDERYHFRQGLWLRQRIDWWDFKLQJ
WKH SRZHU RI DWWRUQH\ DORQJ ZLWK WKH $SSOLFDWLRQ )RUPV VXEMHFW WR VXFK WHUPV DQG FRQGLWLRQV WKDW
RXU&RPSDQ\DQGWKH/HDG0DQDJHUVPD\GHHPILW
$SSOLFDWLRQVE\SURYLGHQWIXQGVSHQVLRQIXQGVJUDWXLW\IXQGVDQGVXSHUDQQXDWLRQIXQGVZKLFKDUH
DXWKRUL]HGWRLQYHVWLQWKH1&'V
$SSOLFDWLRQV E\ SURYLGHQW IXQGV SHQVLRQ IXQGV VXSHUDQQXDWLRQ IXQGV DQG JUDWXLW\ ILQGV ZKLFK DUH
DXWKRULVHGWRLQYHVWLQWKH1&'VIRU$OORWPHQWRIWKH1&'VPXVWEHDFFRPSDQLHGE\FHUWLILHGWUXHFRSLHV
RILDQ\$FWUXOHVXQGHUZKLFKWKH\DUHLQFRUSRUDWHGLLDSRZHURIDWWRUQH\LIDQ\LQIDYRXURIRQHRU
PRUH WUXVWHHV WKHUHRI LLL D ERDUG UHVROXWLRQ DXWKRULVLQJ LQYHVWPHQWV LY VXFK RWKHU GRFXPHQWV
HYLGHQFLQJUHJLVWUDWLRQWKHUHRIXQGHUDSSOLFDEOHVWDWXWRU\UHJXODWRU\UHTXLUHPHQWVYVSHFLPHQVLJQDWXUH
RIDXWKRUL]HGSHUVRQYLDFHUWLILHGFRS\RIWKHUHJLVWHUHGLQVWUXPHQWIRUFUHDWLRQRIVXFKIXQGWUXVWDQG
YLLDQ\WD[H[HPSWLRQFHUWLILFDWHLVVXHGE\,QFRPH7D[DXWKRULWLHV)DLOLQJWKLVRXU&RPSDQ\UHVHUYHVWKH
ULJKW WR DFFHSW RU UHMHFW DQ\ $SSOLFDWLRQV IURP VXFK $SSOLFDQWV LQ ZKROH RU LQ SDUW LQ HLWKHU FDVH ZLWKRXW
DVVLJQLQJDQ\UHDVRQWKHUHIRU
$SSOLFDWLRQVE\1DWLRQDO,QYHVWPHQW)XQG
$SSOLFDWLRQ PDGH E\ 1DWLRQDO ,QYHVW )XQG IRU $OORWPHQW RI WKH 1&'V PXVW EH DFFRPSDQLHG E\ FHUWLILHG WUXH
FRSLHV RI L D UHVROXWLRQ DXWKRULVLQJ LQYHVWPHQW DQG FRQWDLQLQJ RSHUDWLQJ LQVWUXFWLRQV DQG LL VSHFLPHQ
VLJQDWXUHVRIDXWKRUL]HGSHUVRQV)DLOLQJWKLVRXU&RPSDQ\UHVHUYHVWKHULJKWWRDFFHSWRUUHMHFWDQ\$SSOLFDWLRQV
IRU$OORWPHQWRIWKH1&'VLQZKROHRULQSDUWLQHLWKHUFDVHZLWKRXWDVVLJQLQJDQ\UHDVRQWKHUHIRU
$SSOLFDWLRQE\FRPPHUFLDOEDQNVFRRSHUDWLYHEDQNVDQG5HJLRQDO5XUDO%DQNV
&RPPHUFLDO%DQNVFRRSHUDWLYHEDQNVDQG5HJLRQDO5XUDO%DQNVFDQDSSO\LQWKH,VVXHEDVHGXSRQWKHLURZQ
LQYHVWPHQW OLPLWV DQG DSSURYDOV 7KH DSSOLFDWLRQ PXVW EH DFFRPSDQLHG E\ FHUWLILHG WUXH FRSLHV RI L D ERDUG
UHVROXWLRQV DXWKRULVLQJ LQYHVWPHQWV LL OHWWHUV RI DXWKRULVDWLRQ DQG LLL VSHFLPHQ VLJQDWXUHV RI DXWKRULVHG
SHUVRQV)DLOLQJWKLVRXU&RPSDQ\UHVHUYHVWKHULJKWWRDFFHSWRUUHMHFWDQ\$SSOLFDWLRQLQZKROHRULQSDUWLQ
HLWKHUFDVHZLWKRXWDVVLJQLQJDQ\UHDVRQWKHUHRI
$SSOLFDWLRQVE\7UXVWV
$SSOLFDWLRQVPDGHE\DWUXVWVHWWOHGXQGHUWKH,QGLDQ7UXVWV$FWRUDQ\RWKHUVWDWXWRU\DQGRUUHJXODWRU\
SURYLVLRQ JRYHUQLQJ WKH VHWWOHPHQW RI WUXVWV LQ ,QGLD PXVW EH DFFRPSDQLHG E\ D L FHUWLILHG WUXH FRS\ RI WKH
UHJLVWHUHGLQVWUXPHQWIRUFUHDWLRQRIVXFKWUXVWLLSRZHURIDWWRUQH\LIDQ\LQIDYRXURIRQHRUPRUHWUXVWHHV
WKHUHRI DQG LLL VXFK RWKHU GRFXPHQWV HYLGHQFLQJ UHJLVWUDWLRQ WKHUHRI XQGHU DSSOLFDEOH VWDWXWRU\UHJXODWRU\
UHTXLUHPHQWV)DLOLQJWKLVRXU&RPSDQ\UHVHUYHVWKHULJKWWRDFFHSWRUUHMHFWDQ\$SSOLFDWLRQVLQZKROHRU
LQSDUWLQHLWKHUFDVHZLWKRXWDVVLJQLQJDQ\UHDVRQWKHUHIRU
)XUWKHU DQ\ WUXVWV DSSO\LQJ IRU 1&'V PXVW HQVXUH WKDW D WKH\ DUH DXWKRULVHG XQGHU DSSOLFDEOH
VWDWXWRU\UHJXODWRU\ UHTXLUHPHQWV DQG WKHLU FRQVWLWXWLRQ LQVWUXPHQW WR KROG DQG LQYHVW LQ 1&'V E WKH\ KDYH
REWDLQHGDOOQHFHVVDU\DSSURYDOVFRQVHQWV RU RWKHU DXWKRULVDWLRQV ZKLFK PD\ EH UHTXLUHG XQGHU DSSOLFDEOH
VWDWXWRU\ DQGRU UHJXODWRU\ UHTXLUHPHQWV WR LQYHVW LQ 1&'V DQG F DSSOLFDWLRQV PDGH E\ WKHP GR QRW
H[FHHG WKH LQYHVWPHQW OLPLWV RU PD[LPXP QXPEHU RI 1&'V WKDW FDQ EH KHOG E\ WKHP XQGHU DSSOLFDEOH
VWDWXWRU\DQGRUUHJXODWRU\SURYLVLRQV
,QGLDQ 6FLHQWLILF DQGRU LQGXVWULDO UHVHDUFK RUJDQL]DWLRQV ZKLFK DUH DXWKRUL]HG WR LQYHVW LQ WKH
1&'V
$SSOLFDWLRQVE\,QGLDQVFLHQWLILFDQGRULQGXVWULDOUHVHDUFKRUJDQLVDWLRQVPXVWEHDFFRPSDQLHGE\FHUWLILHG
WUXH FRSLHV RI L DQ\ $FW UXOHV XQGHU ZKLFK WKH\ DUH LQFRUSRUDWHG LL D UHVROXWLRQ RI LWV ERDUG RI
GLUHFWRUV DXWKRULVLQJ LQYHVWPHQWV DQG LLL VSHFLPHQ VLJQDWXUHV RI DXWKRUL]HG SHUVRQV )DLOLQJ WKLV RXU
&RPSDQ\UHVHUYHVWKHULJKWWRDFFHSWRUUHMHFWDQ\$SSOLFDWLRQVLQZKROHRULQSDUWLQHLWKHUFDVHZLWKRXW
DVVLJQLQJDQ\UHDVRQWKHUHIRU
$SSOLFDWLRQVE\,QVXUDQFH)XQGV
$SSOLFDWLRQVE\LQVXUDQFHIXQGVVHWXSDQGPDQDJHGE\WKHDUP\QDY\RUDLUIRUFHRIWKH8QLRQRI,QGLDRUE\
WKH'HSDUWPHQWRI3RVWV*R,PXVWEHDFFRPSDQLHGE\FHUWLILHGWUXHFRSLHVRILDQ\$FWUXOHVXQGHUZKLFK
WKH\ DUH LQFRUSRUDWHG DQG WKHLU SDUWQHUVKLS GHHGV LL D UHVROXWLRQ RI LWV ERDUG RI GLUHFWRUV SDUWQHUV
DXWKRULVLQJ LQYHVWPHQWV DQG LLL VSHFLPHQ VLJQDWXUHV RI DXWKRUL]HG SHUVRQV )DLOLQJ WKLV RXU &RPSDQ\
UHVHUYHV WKH ULJKW WR DFFHSW RU UHMHFW DQ\ $SSOLFDWLRQV IURP VXFK LQVXUDQFH IXQGV LQ ZKROH RU LQ SDUW LQ
HLWKHUFDVHZLWKRXWDVVLJQLQJDQ\UHDVRQWKHUHIRU
$SSOLFDWLRQVFDQQRWEHPDGHE\
D 0LQRUV ZLWKRXW D JXDUGLDQ QDPH $ JXDUGLDQ PD\ DSSO\ RQ EHKDOIRI D PLQRU +RZHYHU $SSOLFDWLRQV E\
PLQRUVPXVWEHPDGHWKURXJK$SSOLFDWLRQ)RUPVWKDWFRQWDLQWKHQDPHVRIERWKWKHPLQRU$SSOLFDQWDQGWKH
JXDUGLDQ
E ,QGLYLGXDOVRUHQWLWLHVWKDWDUHQRWUHVLGHQWLQ,QGLDDQG
F 3HUVRQVLQHOLJLEOHWRFRQWUDFWXQGHUDSSOLFDEOHVWDWXWRU\UHJXODWRU\UHTXLUHPHQWV
,QFDVHRI$SSOLFDWLRQVIRU$OORWPHQWRIWKH1&'VLQGHPDWHULDOLVHGIRUPWKH5HJLVWUDUVKDOOYHULI\WKHDERYHRQ
WKH EDVLV RI WKH UHFRUGV SURYLGHG E\ WKH 'HSRVLWRULHV EDVHG RQ WKH '3 ,' DQG &OLHQW ,' SURYLGHG E\ WKH
$SSOLFDQWV LQ WKH $SSOLFDWLRQ )RUP DQG XSORDGHG RQWR WKH HOHFWURQLF DSSOLFDWLRQ SODWIRUP RI WKH %6( E\ WKH
0HPEHUVRIWKH6\QGLFDWH6&6%VRUWKH7UDGLQJ0HPEHUVDVWKHFDVHPD\EH
3D\PHQWLQVWUXFWLRQV
3D\PHQWPHFKDQLVPIRU$6%$$SSOLFDQWV
$Q$6%$$SSOLFDQWVKDOOVSHFLI\GHWDLOVRIWKH$6%$$FFRXQWLQWKH$SSOLFDWLRQ)RUPDQGWKHUHOHYDQW6&6%
VKDOOEORFNDQDPRXQWHTXLYDOHQWWRWKH$SSOLFDWLRQ$PRXQWLQWKH$6%$$FFRXQWVSHFLILHGLQWKH$SSOLFDWLRQ
)RUP 8SRQ UHFHLSW RI LQWLPDWLRQ IURP WKH 5HJLVWUDU WKH 6&6%V VKDOO RQ WKH 'HVLJQDWHG 'DWH WUDQVIHU VXFK
EORFNHGDPRXQWIURPWKH$6%$$FFRXQWWRWKH3XEOLF,VVXH $FFRXQWLQWHUPVRIWKH(VFURZ$JUHHPHQW7KH
EDODQFHDPRXQWUHPDLQLQJDIWHUWKHILQDOLVDWLRQRIWKH%DVLVRI$OORWPHQWVKDOOEHXQEORFNHGE\WKH6&6%VRQWKH
EDVLVRIWKHLQVWUXFWLRQVLVVXHGLQWKLVUHJDUGE\WKH5HJLVWUDUWRWKHUHVSHFWLYH6&6%ZLWKLQWZHOYH:RUNLQJ
'D\V RI WKH ,VVXH &ORVLQJ 'DWH 7KH $SSOLFDWLRQ $PRXQW VKDOO UHPDLQ EORFNHG LQ WKH $6%$ $FFRXQW XQWLO
WUDQVIHURIWKH$SSOLFDWLRQ$PRXQWWRWKH3XEOLF,VVXH$FFRXQWRUXQWLOZLWKGUDZDOIDLOXUHRIWKH,VVXHRUXQWLO
UHMHFWLRQRIWKH$6%$$SSOLFDWLRQDVWKHFDVHPD\EH
3D\PHQWPHFKDQLVPIRUQRQ$6%$$SSOLFDQWV
:H VKDOO RSHQ (VFURZ $FFRXQWV ZLWK RQH RU PRUH (VFURZ &ROOHFWLRQ %DQNV LQ ZKRVH IDYRXU WKH $SSOLFDQWV
H[FHSWIRU$6%$$SSOLFDQWVVKDOOGUDZFKHTXHVRUGHPDQGGUDIWV$OO$SSOLFDQWVZRXOGEHUHTXLUHGWRSD\WKH
IXOO$SSOLFDWLRQ$PRXQWDWWKHWLPHRIWKHVXEPLVVLRQRIWKH$SSOLFDWLRQ)RUP&KHTXHVRUGHPDQGGUDIWVIRUWKH
$SSOLFDWLRQ$PRXQWUHFHLYHGIURP$SSOLFDQWVZRXOGEHGHSRVLWHGE\WKH0HPEHUVRIWKH6\QGLFDWHDQG7UDGLQJ
0HPEHUVDVWKHFDVHPD\EHLQWKH(VFURZ$FFRXQWV
(DFK$SSOLFDQWH[FHSWIRU$6%$$SSOLFDQWVVKDOOGUDZDFKHTXHRUGHPDQGGUDIWIRUWKH$SSOLFDWLRQ$PRXQWDV
SHUWKHIROORZLQJWHUPV
D 7KHSD\PHQWLQVWUXPHQWVIURP DOOUHVLGHQW $SSOLFDQWVVKDOOEH SD\DEOHLQWRWKH(VFURZ$FFRXQWVGUDZQLQ
IDYRXURI³6&8)1&'±(VFURZ$FFRXQW´
E 3D\PHQWVVKRXOGEHPDGHE\FKHTXHRUDGHPDQGGUDIWGUDZQRQDQ\EDQNLQFOXGLQJDFRRSHUDWLYHEDQN
ZKLFKLVVLWXDWHGDWDQGLVDPHPEHURIRUVXEPHPEHURIWKHEDQNHUV¶FOHDULQJKRXVHORFDWHGDWWKHFHQWUH
ZKHUHWKH$SSOLFDWLRQ)RUPLVVXEPLWWHG2XWVWDWLRQFKHTXHVEDQNGUDIWVGUDZQRQEDQNVQRWSDUWLFLSDWLQJLQ
WKHFOHDULQJSURFHVVZLOOQRWEHDFFHSWHGDQG$SSOLFDWLRQVDFFRPSDQLHGE\VXFKFKHTXHVRUEDQNGUDIWVDUH
OLDEOHWREHUHMHFWHG
F 7KH PRQLHV GHSRVLWHG LQ WKH (VFURZ $FFRXQWV ZLOO EH KHOG IRU WKH EHQHILW RI WKH $SSOLFDQWV XQWLO WKH
'HVLJQDWHG'DWH
G 2QWKH'HVLJQDWHG'DWHWKH(VFURZ&ROOHFWLRQ%DQNVVKDOOWUDQVIHUWKHIXQGVIURPWKH(VFURZ$FFRXQWVDV
SHU WKH WHUPV RI WKH (VFURZ $JUHHPHQW DQG WKLV 3URVSHFWXV LQWR WKH 3XEOLF ,VVXH $FFRXQW 7KH (VFURZ
&ROOHFWLRQ%DQNVKDOODOVRXSRQUHFHLSWRILQVWUXFWLRQVIURPWKH/HDG0DQDJHUVDQGWKH5HJLVWUDUWUDQVIHUDOO
DPRXQWVSD\DEOHWR$SSOLFDQWVZKRKDYHQRWEHHQDOORWWHG1&'VWRWKH5HIXQG$FFRXQWV
3OHDVHQRWHWKDW$SSOLFDWLRQVDFFRPSDQLHGE\$SSOLFDWLRQ$PRXQWVLQFDVKVWRFNLQYHVWPRQH\RUGHUVSRVWDO
RUGHUVZLOOQRWEHDFFHSWHG
7KH (VFURZ &ROOHFWLRQ %DQNV ZLOO DFW LQ WHUPV RI WKLV 3URVSHFWXV DQG WKH (VFURZ $JUHHPHQW 7KH (VFURZ
&ROOHFWLRQ%DQNVVKDOOQRWH[HUFLVHDQ\OLHQZKDWVRHYHURYHUWKHPRQLHVGHSRVLWHGWKHUHLQ,WLVPDQGDWRU\IRURXU
&RPSDQ\WRNHHSWKHSURFHHGVRIWKH,VVXHLQDQHVFURZDFFRXQWXQWLOWKHGRFXPHQWVIRUFUHDWLRQRIWKHVHFXULW\
IRUWKH1&'VDUHH[HFXWHG
$GGLWLRQDOLQIRUPDWLRQIRU$SSOLFDQWV
$SSOLFDWLRQ)RUPVVXEPLWWHGE\$SSOLFDQWVH[FHSWIRU$SSOLFDQWVDSSO\LQJIRUWKH1&'VLQSK\VLFDOIRUP
ZKRVHEHQHILFLDU\DFFRXQWVDUHLQDFWLYHVKDOOEHUHMHFWHG
)RU $6%$ $SSOLFDQWV QR VHSDUDWH UHFHLSWV ZLOO EH LVVXHG IRU WKH PRQH\ EORFNHG RQ WKH VXEPLVVLRQ RI
$SSOLFDWLRQ )RUP +RZHYHU WKH FROOHFWLRQ FHQWUH RI WKH 0HPEHUV RI WKH 6\QGLFDWH RU WKH 6&6% RU WKH
7UDGLQJ0HPEHUDVWKHFDVHPD\EHZLOODFNQRZOHGJHWKHUHFHLSWRIWKH$SSOLFDWLRQ)RUPVE\VWDPSLQJ
DQG UHWXUQLQJ WR WKH $SSOLFDQW WKH DFNQRZOHGJHPHQW VOLS 7KLV DFNQRZOHGJHPHQW VOLS ZLOO VHUYH DV WKH
GXSOLFDWHRIWKH$SSOLFDWLRQ)RUPIRUWKHUHFRUGVRIWKH$SSOLFDQW
$SSOLFDWLRQV VKRXOG EH VXEPLWWHG RQ WKH $SSOLFDWLRQ )RUP RQO\ ,Q WKH HYHQW WKDW SK\VLFDO $SSOLFDWLRQ
)RUPVGRQRWEHDUWKHVWDPSRIWKH0HPEHUVRIWKH6\QGLFDWH7UDGLQJ0HPEHUVRUWKHUHOHYDQW'HVLJQDWHG
%UDQFKWKH\DUHOLDEOHWREHUHMHFWHG
$SSOLFDQWVDUHDGYLVHGQRWWRVXEPLW$SSOLFDWLRQ)RUPVWR(VFURZ&ROOHFWLRQ%DQNVXQOHVVVXFK(VFURZ
&ROOHFWLRQ%DQNLVDOVRDQ6&6%DQGWKHVDPHZLOOEHUHMHFWHGLQVXFKFDVHVDQGWKH$SSOLFDQWVZLOOQRWEH
HQWLWOHGWRDQ\FRPSHQVDWLRQZKDWVRHYHU
3UH,VVXH$GYHUWLVHPHQW
2XU&RPSDQ\ZLOOLVVXHDVWDWXWRU\DGYHUWLVHPHQWRQRUEHIRUHWKH,VVXH2SHQLQJ'DWH7KLVDGYHUWLVHPHQWZLOO
FRQWDLQ WKH LQIRUPDWLRQ DV SUHVFULEHG XQGHU WKH 6(%, 'HEW 5HJXODWLRQV 0DWHULDO XSGDWHV LI DQ\ EHWZHHQ WKH
GDWH RI ILOLQJ RI WKLV 3URVSHFWXV ZLWK WKH 5R& DQG WKH GDWH RI UHOHDVH RI WKLV VWDWXWRU\ DGYHUWLVHPHQW ZLOO EH
LQFOXGHGLQWKHVWDWXWRU\DGYHUWLVHPHQW
,QVWUXFWLRQVIRUFRPSOHWLQJWKH$SSOLFDWLRQ)RUP
D $SSOLFDWLRQVPXVWEHPDGHLQWKHSUHVFULEHG$SSOLFDWLRQ)RUP
E $SSOLFDWLRQ )RUPV DUH WR EH FRPSOHWHG LQ IXOO LQ %/2&. /(77(56 LQ (1*/,6+ DQG LQ DFFRUGDQFH
ZLWK WKH LQVWUXFWLRQV FRQWDLQHG LQ WKLV 3URVSHFWXV DQG WKH $SSOLFDWLRQ )RUP ,QFRPSOHWH $SSOLFDWLRQ
)RUPVDUHOLDEOHWREHUHMHFWHG$SSOLFDQWVVKRXOGQRWHWKDWWKH 0HPEHUVRIWKH6\QGLFDWHRUWKH7UDGLQJ
0HPEHUV DV DSSURSULDWH ZLOO QRW EH OLDEOH IRU HUURUV LQ GDWD HQWU\ GXH WR LQFRPSOHWH RU LOOHJLEOH
$SSOLFDWLRQ)RUPV
F $SSOLFDWLRQVDUHUHTXLUHGWREHIRUDPLQLPXPRIVXFK1&'VDQGLQPXOWLSOHVRIVXFK1&'VDVVSHFLILHG
LQWKLV3URVSHFWXV
G 7KXPE LPSUHVVLRQV DQG VLJQDWXUHV RWKHU WKDQ LQ WKH ODQJXDJHV VSHFLILHG LQ WKH (LJKWK 6FKHGXOH LQ WKH
&RQVWLWXWLRQRI,QGLDPXVWEHDWWHVWHGE\D0DJLVWUDWHRUD1RWDU\3XEOLFRUD6SHFLDO([HFXWLYH0DJLVWUDWH
XQGHURIILFLDOVHDO
H $SSOLFDWLRQVVKRXOGEHLQVLQJOHRUMRLQWQDPHVDQGQRWH[FHHGLQJWKUHHQDPHVDQGLQWKHVDPHRUGHUDV
WKHLU 'HSRVLWRU\ 3DUWLFLSDQW GHWDLOV LQ FDVH RI $SSOLFDQWV DSSO\LQJ IRU $OORWPHQW RI WKH 1&'V LQ
GHPDWHULDOL]HGIRUPDQG$SSOLFDWLRQVVKRXOGEHPDGHE\.DUWDLQFDVHWKH$SSOLFDQWLVDQ+8)3OHDVH
HQVXUHWKDWVXFK$SSOLFDWLRQVFRQWDLQWKH3$1RIWKH+8)DQGQRWRIWKH.DUWD $SSOLFDWLRQVFDQEHLQ
VLQJOHRUMRLQWQDPHVQRWH[FHHGLQJWKUHHQDPHV
I ,IWKH$SSOLFDWLRQLVVXEPLWWHGLQMRLQWQDPHVWKH$SSOLFDWLRQ)RUPVKRXOGFRQWDLQRQO\WKHQDPHRIWKH
ILUVW$SSOLFDQWZKRVHQDPHVKRXOGDOVRDSSHDUDVWKHILUVWKROGHURIWKHGHSRVLWRU\DFFRXQWKHOG LQMRLQW
QDPHV,IWKH'3DFFRXQWLVKHOGLQMRLQWQDPHVWKH$SSOLFDWLRQ)RUPVKRXOGFRQWDLQWKHQDPHDQG3$1
RIWKHSHUVRQZKRVHQDPHDSSHDUVILUVWLQWKHGHSRVLWRU\DFFRXQWDQGVLJQDWXUHRIRQO\WKLVSHUVRQZRXOG
EHUHTXLUHGLQWKH$SSOLFDWLRQ)RUP7KLV$SSOLFDQWZRXOGEHGHHPHGWRKDYHVLJQHGRQEHKDOIRIMRLQW
KROGHUVDQGZRXOGEHUHTXLUHGWRJLYHFRQILUPDWLRQWRWKLVHIIHFWLQWKH$SSOLFDWLRQ)RUP
J $SSOLFDQWV DSSO\LQJ IRU $OORWPHQW LQ GHPDWHULDOLVHG IRUP PXVW SURYLGH GHWDLOV RI YDOLG DQG DFWLYH '3
,'&OLHQW,'DQG3$1FOHDUO\DQGZLWKRXWHUURU2QWKHEDVLVRIVXFK$SSOLFDQW¶VDFWLYH'3,'&OLHQW
,'DQG3$1SURYLGHGLQWKH$SSOLFDWLRQ)RUPDQGDVHQWHUHGLQWRWKHHOHFWURQLF$SSOLFDWLRQV\VWHPRI
%6( E\ 6&6%V WKH 0HPEHUV RI WKH 6\QGLFDWH DW WKH 6\QGLFDWH $6%$ $SSOLFDWLRQ /RFDWLRQV DQG WKH
7UDGLQJ 0HPEHUV DV WKH FDVH PD\ EH WKH 5HJLVWUDU ZLOO REWDLQ IURP WKH 'HSRVLWRU\ WKH 'HPRJUDSKLF
'HWDLOV ,QYDOLG DFFRXQWV VXVSHQGHG DFFRXQWV RU ZKHUH VXFK DFFRXQW LV FODVVLILHG DV LQYDOLG RU
VXVSHQGHGPD\QRWEHFRQVLGHUHGIRU$OORWPHQWRIWKH1&'V
K $6%$ $SSOLFDQWV XWLOLVLQJ SK\VLFDO $SSOLFDWLRQ )RUPV PXVW HQVXUH WKDW WKH $SSOLFDWLRQ )RUPV DUH
FRPSOHWHGLQIXOOLQ%/2&./(77(56LQ(1*/,6+DQGLQDFFRUGDQFHZLWKWKHLQVWUXFWLRQVFRQWDLQHG
LQWKLV3URVSHFWXVDQGLQWKH$SSOLFDWLRQ)RUP
L ,IWKH$6%$$FFRXQWKROGHULVGLIIHUHQWIURPWKH$6%$$SSOLFDQWWKH$SSOLFDWLRQ)RUPVKRXOG DOVREH
VLJQHG E\ WKH $6%$ $FFRXQW KROGHU LQ DFFRUGDQFH ZLWK WKH LQVWUXFWLRQV SURYLGHG LQ WKH $SSOLFDWLRQ
)RUP
M $OO $SSOLFDQWV DUH UHTXLUHG WR WLFN WKH UHOHYDQW FROXPQ LQ WKH ³&DWHJRU\ RI ,QYHVWRU´ ER[ LQ WKH
$SSOLFDWLRQ)RUP
N $SSOLFDWLRQVIRUDOOWKH6HULHVRIWKH1&'VPD\EHPDGHLQDVLQJOH$SSOLFDWLRQ)RUPRQO\
O $OO $SSOLFDQWV DUH UHTXLUHG WR WLFN WKH UHOHYDQW ER[ RI WKH ³0RGH RI $SSOLFDWLRQ´ LQ WKH $SSOLFDWLRQ
)RUPFKRRVLQJHLWKHUWKH$6%$RU1RQ$6%$PHFKDQLVP
:H VKDOO DOORFDWH DQG $OORW 6HULHV 9, 1&'V WR DOO YDOLG $SSOLFDWLRQV ZKHUHLQ WKH $SSOLFDQWV KDYH QRW
LQGLFDWHGWKHLUFKRLFHRIWKHUHOHYDQW6HULHVDSSOLHGIRU
$SSOLFDQWV¶3$1'HSRVLWRU\$FFRXQWDQG%DQN$FFRXQW'HWDLOV
$// $33/,&$176 $33/<,1* )25 $//270(17 2) 7+( 1&'6 ,1 '(0$7(5,$/,6('
)250 6+28/' 0(17,21 7+(,5 '3 ,' &/,(17 ,' $1' 3$1 ,1 7+( $33/,&$7,21
)250$33/,&$1760867(1685(7+$77+('3,'&/,(17,'$1'3$1*,9(1,17+(
$33/,&$7,21 )250 $5( (;$&7/< 7+( 6$0( $6 7+( '3 ,' &/,(17 ,' $1' 3$1
$9$,/$%/( ,1 7+( '(326,725< '$7$%$6( ,) 7+( %(1(),&,$5< $&&2817,6 +(/'
,1-2,171$0(67+($33/,&$7,21)2506+28/'&217$,17+(1$0($1'3$12)
%27+ 7+( +2/'(56 2) 7+( %(1(),&,$5< $&&2817 $1' 6,*1$785(6 2) %27+
+2/'(56:28/'%(5(48,5(',17+($33/,&$7,21)250
2Q WKH EDVLV RI WKH '3 ,' &OLHQW ,' DQG 3$1 SURYLGHG E\ WKHP LQ WKH $SSOLFDWLRQ )RUP WKH
5HJLVWUDU ZLOO REWDLQ IURP WKH 'HSRVLWRU\ WKH 'HPRJUDSKLF 'HWDLOV RI WKH $SSOLFDQWV LQFOXGLQJ 3$1
DQG0,&5FRGH7KHVH'HPRJUDSKLF'HWDLOVZRXOGEHXVHGIRUJLYLQJ$OORWPHQW$GYLFHDQGUHIXQGV
IRU QRQ$6%$ $SSOLFDQWV LI DQ\ WR WKH $SSOLFDQWV +HQFH $SSOLFDQWV DUH DGYLVHG WR LPPHGLDWHO\
XSGDWHWKHLU'HPRJUDSKLF'HWDLOVLQFOXGLQJEDQNDFFRXQWGHWDLOVDVDSSHDULQJRQWKHUHFRUGVRIWKH
'HSRVLWRU\ 3DUWLFLSDQW DQG HQVXUH WKDW WKH\ DUH WUXH DQG FRUUHFW 3OHDVH QRWH WKDW IDLOXUH WR GR VR
FRXOG UHVXOW LQ GHOD\V LQ GHVSDWFK FUHGLW RI UHIXQGV WR $SSOLFDQWV GHOLYHU\ RI $OORWPHQW $GYLFH RU
XQEORFNLQJ RI $6%$ $FFRXQWV DWWKH$SSOLFDQWV¶VROHULVN DQG QHLWKHUWKH 0HPEHUVRIWKH6\QGLFDWH
QRU WKH 7UDGLQJ 0HPEHUV QRU WKH 5HJLVWUDU QRU WKH (VFURZ &ROOHFWLRQ %DQNV QRU WKH 6&6%V QRU
RXU&RPSDQ\VKDOOKDYHDQ\UHVSRQVLELOLW\DQGXQGHUWDNHDQ\OLDELOLW\IRUWKHVDPH
$SSOLFDQWVDSSO\LQJIRU$OORWPHQWRIWKH1&'VLQGHPDWHULDOL]HGIRUPPD\QRWHWKDWLQFDVHWKH'3,'
&OLHQW,'DQG3$1PHQWLRQHGLQWKH$SSOLFDWLRQ)RUPDVWKHFDVHPD\EHDQGHQWHUHGLQWRWKHHOHFWURQLF
$SSOLFDWLRQV\VWHPRIWKH%6(E\WKH0HPEHUVRIWKH6\QGLFDWHWKH7UDGLQJ0HPEHUVRUWKH6&6%VDV
WKHFDVHPD\EHGRQRWPDWFKZLWKWKH'3,'&OLHQW,'DQG3$1DYDLODEOHLQWKH'HSRVLWRU\GDWDEDVHRU
LQFDVH3$1LVQRWDYDLODEOHLQWKH'HSRVLWRU\GDWDEDVHWKH$SSOLFDWLRQ)RUPLVOLDEOHWREHUHMHFWHGDQG
RXU&RPSDQ\DQGWKH0HPEHUVRIWKH6\QGLFDWHVKDOOQRWEHOLDEOHIRUORVVHVLIDQ\
7KHVH'HPRJUDSKLF'HWDLOVZRXOGEHXVHGIRUDOOFRUUHVSRQGHQFHZLWKWKH$SSOLFDQWVLQFOXGLQJPDLOLQJRIWKH
$OORWPHQW$GYLFHDQGSULQWLQJRIEDQNSDUWLFXODUVRQWKHUHIXQGRUGHUVRUIRUUHIXQGVWKURXJKHOHFWURQLFWUDQVIHU
RI IXQGVDVDSSOLFDEOH7KH 'HPRJUDSKLF'HWDLOV JLYHQE\ $SSOLFDQWV LQWKH $SSOLFDWLRQ)RUP ZRXOG QRWEH
XVHGIRUDQ\RWKHUSXUSRVHE\WKH5HJLVWUDUH[FHSWLQUHODWLRQWRWKH,VVXH
%\VLJQLQJWKH$SSOLFDWLRQ)RUP$SSOLFDQWVDSSO\LQJIRUWKH1&'VLQGHPDWHULDOLVHGIRUPZRXOGEHGHHPHGWR
KDYHDXWKRULVHGWKH'HSRVLWRULHVWRSURYLGHXSRQUHTXHVWWRWKH5HJLVWUDUWKHUHTXLUHG'HPRJUDSKLF'HWDLOVDV
DYDLODEOHRQLWVUHFRUGV
5HIXQG RUGHUV $OORWPHQW $GYLFH ZRXOG EH PDLOHG DW WKH DGGUHVV RI WKH $SSOLFDQWV DV SHU WKH 'HPRJUDSKLF
'HWDLOVUHFHLYHGIURPWKH'HSRVLWRULHV$SSOLFDQWVPD\QRWHWKDWGHOLYHU\RIUHIXQGRUGHUV$OORWPHQW$GYLFH
PD\JHWGHOD\HGLIWKHVDPHRQFHVHQWWRWKHDGGUHVVREWDLQHGIURPWKH'HSRVLWRULHVDUHUHWXUQHGXQGHOLYHUHG,Q
VXFK DQ HYHQW WKH DGGUHVV DQG RWKHU GHWDLOV JLYHQ E\ WKH $SSOLFDQW RWKHU WKDQ $6%$ $SSOLFDQWV LQ WKH
$SSOLFDWLRQ )RUP ZRXOG EH XVHG RQO\ WR HQVXUH GLVSDWFK RI UHIXQG RUGHUV )XUWKHU SOHDVH QRWH WKDW DQ\ VXFK
GHOD\VKDOOEHDWVXFK$SSOLFDQWV¶VROHULVNDQGQHLWKHURXU&RPSDQ\(VFURZ&ROOHFWLRQ%DQNV5HJLVWUDUQRU
WKH/HDG0DQDJHUVVKDOOEHOLDEOHWRFRPSHQVDWHWKH$SSOLFDQWIRUDQ\ORVVHVFDXVHGWRWKH$SSOLFDQWVGXHWR
DQ\ VXFK GHOD\ RU OLDEOH WR SD\ DQ\ LQWHUHVW IRU VXFK GHOD\ ,Q FDVH RI UHIXQGV WKURXJK HOHFWURQLF PRGHV DV
GHWDLOHGLQWKLV3URVSHFWXVUHIXQGVPD\EHGHOD\HGLIEDQNSDUWLFXODUVREWDLQHGIURPWKH'HSRVLWRU\3DUWLFLSDQW
DUHLQFRUUHFW
,Q FDVH RI $SSOLFDWLRQV PDGH XQGHU SRZHUV RI DWWRUQH\ RXU &RPSDQ\ LQ LWV DEVROXWH GLVFUHWLRQ UHVHUYHV WKH
ULJKW WR SHUPLW WKH KROGHU RI D SRZHU RI DWWRUQH\ WR UHTXHVW WKH 5HJLVWUDU WKDW IRU WKH SXUSRVH RI SULQWLQJ
SDUWLFXODUV RQ WKH UHIXQG RUGHU DQG PDLOLQJ RI WKH UHIXQG RUGHUV$OORWPHQW $GYLFH WKH 'HPRJUDSKLF 'HWDLOV
REWDLQHGIURPWKH'HSRVLWRU\RIWKH$SSOLFDQWVKDOOEHXVHG
,QFDVHQRFRUUHVSRQGLQJUHFRUGLVDYDLODEOHZLWKWKH'HSRVLWRULHVZKLFKPDWFKHVWKHWKUHHSDUDPHWHUVQDPHO\
'3,'&OLHQW,'DQG3$1WKHQVXFK$SSOLFDWLRQVDUHOLDEOHWREHUHMHFWHG
(OHFWURQLFUHJLVWUDWLRQRI$SSOLFDWLRQV
D 7KH0HPEHUVRIWKH6\QGLFDWH6&6%VDQG7UDGLQJ0HPEHUVZLOOUHJLVWHUWKH$SSOLFDWLRQVXVLQJWKHRQ
OLQH IDFLOLWLHV RI WKH %6( 7KH /HDG 0DQDJHUV RXU &RPSDQ\ DQGWKH 5HJLVWUDUDUH QRWUHVSRQVLEOH IRU
DQ\DFWVPLVWDNHVRUHUURUVRURPLVVLRQDQGFRPPLVVLRQVLQUHODWLRQWRLWKH $SSOLFDWLRQVDFFHSWHGE\
WKH 6&6%V DQG 7UDGLQJ 0HPEHUV LL WKH $SSOLFDWLRQV XSORDGHG E\ WKH 6&6%V DQG WKH 7UDGLQJ
0HPEHUVLLLWKH$SSOLFDWLRQVDFFHSWHGEXWQRWXSORDGHGE\WKH6&6%VRUWKH7UDGLQJ0HPEHUVLY
ZLWKUHVSHFWWR$6%$$SSOLFDWLRQVDFFHSWHGDQGXSORDGHGE\WKH6&6%VZLWKRXWEORFNLQJIXQGVLQWKH
$6%$$FFRXQWVRULYZLWKUHVSHFWWR$6%$$SSOLFDWLRQVDFFHSWHGDQGXSORDGHGE\0HPEHUVRIWKH
6\QGLFDWH DW WKH 6\QGLFDWH $6%$ $SSOLFDWLRQ /RFDWLRQV IRU ZKLFK WKH $SSOLFDWLRQ $PRXQWV DUH QRW
EORFNHGE\WKH6&6%V
E 7KH %6( ZLOORIIHUDQHOHFWURQLFIDFLOLW\IRUUHJLVWHULQJ$SSOLFDWLRQVIRUWKH,VVXH7KLVIDFLOLW\ ZLOOEH
DYDLODEOHRQWKHWHUPLQDOVRIWKH0HPEHUVRIWKH6\QGLFDWH7UDGLQJ0HPEHUVDQGWKHLUDXWKRULVHGDJHQWV
DQG WKH 6&6%V GXULQJ WKH ,VVXH 3HULRG 2Q WKH ,VVXH &ORVLQJ 'DWH WKH 0HPEHUV RI WKH 6\QGLFDWH
7UDGLQJ 0HPEHUV DQG WKH 'HVLJQDWHG %UDQFKHV VKDOO XSORDG $SSOLFDWLRQV WLOO VXFK WLPH DV PD\ EH
SHUPLWWHGE\WKH%6(7KLVLQIRUPDWLRQZLOOEHDYDLODEOHZLWKWKH0HPEHUVRIWKH6\QGLFDWHDQG7UDGLQJ
0HPEHUVRQDUHJXODUEDVLV$SSOLFDQWVDUHFDXWLRQHGWKDWDKLJKLQIORZRI$SSOLFDWLRQVRQWKHODVWGD\
RIWKH,VVXH3HULRGPD\OHDGWRVRPH$SSOLFDWLRQVUHFHLYHGRQWKHODVWGD\QRWEHLQJXSORDGHGDQGVXFK
$SSOLFDWLRQVZLOOQRWEHFRQVLGHUHGIRU$OORWPHQW
F %DVHG RQ WKH DJJUHJDWH GHPDQG IRU $SSOLFDWLRQV UHJLVWHUHG RQ WKH HOHFWURQLF IDFLOLWLHV RI WKH %6( D
JUDSKLFDOUHSUHVHQWDWLRQRIFRQVROLGDWHGGHPDQGIRUWKH 1&'VDVDYDLODEOHRQWKHZHEVLWHRIWKH%6(
ZRXOGEHPDGHDYDLODEOHDWWKH$SSOLFDWLRQFHQWUHVDVSURYLGHGLQWKH$SSOLFDWLRQ)RUPGXULQJWKH,VVXH
3HULRG
G $W WKH WLPH RI UHJLVWHULQJ HDFK $SSOLFDWLRQ 6&6%V WKH 0HPEHUV RI WKH 6\QGLFDWH DQG 7UDGLQJ
0HPEHUV DV WKH FDVH PD\ EH VKDOO HQWHU WKH GHWDLOV RI WKH $SSOLFDQW VXFK DV WKH $SSOLFDWLRQ )RUP
QXPEHU 3$1 $SSOLFDQW FDWHJRU\ '3 ,' &OLHQW ,' QXPEHU DQG 6HULHVV RI 1&'V DSSOLHG
$SSOLFDWLRQ $PRXQWV GHWDLOV RI SD\PHQW LQVWUXPHQWV IRU QRQ ± $6%$ $SSOLFDWLRQV DQG DQ\ RWKHU
GHWDLOVWKDWPD\EHSUHVFULEHGE\WKHRQOLQHXSORDGLQJSODWIRUPVRIWKH%6(
H $V\VWHPJHQHUDWHG756ZLOOEHJLYHQWRWKH$SSOLFDQWDVDSURRIRIWKHUHJLVWUDWLRQRIKLV$SSOLFDWLRQ
,WLVWKH$SSOLFDQW¶VUHVSRQVLELOLW\WRREWDLQWKH756IURPWKH6&6%V 0HPEHUVRIWKH6\QGLFDWHRUWKH
7UDGLQJ 0HPEHUVDVWKHFDVH PD\EH7KHUHJLVWUDWLRQRIWKH $SSOLFDWLRQVE\WKH6&6%V 0HPEHUVRI
WKH6\QGLFDWHRU7UDGLQJ0HPEHUVGRHVQRWJXDUDQWHHWKDWWKH 1&'VVKDOOEHDOORFDWHG$OORWWHGE\ RXU
&RPSDQ\6XFK756ZLOOEHQRQQHJRWLDEOHDQGE\LWVHOIZLOOQRWFUHDWHDQ\REOLJDWLRQRIDQ\NLQG
I 7KHSHUPLVVLRQJLYHQE\WKH%6(WRXVHWKHLUQHWZRUNDQGVRIWZDUHRIWKHRQOLQHV\VWHPVKRXOGQRWLQDQ\
ZD\EHGHHPHGRUFRQVWUXHGWRPHDQWKDWWKHFRPSOLDQFHZLWKYDULRXVVWDWXWRU\DQGRWKHUUHTXLUHPHQWVE\
RXU&RPSDQ\DQGRUWKH/HDG0DQDJHUVDUHFOHDUHGRUDSSURYHGE\ WKH %6(QRUGRHVLWLQDQ\PDQQHU
ZDUUDQWFHUWLI\RUHQGRUVHWKHFRUUHFWQHVVRUFRPSOHWHQHVVRIDQ\RIWKHFRPSOLDQFHZLWKWKHVWDWXWRU\DQG
RWKHUUHTXLUHPHQWVQRUGRHVLWWDNHDQ\UHVSRQVLELOLW\IRUWKHILQDQFLDORURWKHUVRXQGQHVVRIRXU&RPSDQ\
WKHPDQDJHPHQWRUDQ\VFKHPHRUSURMHFWRI RXU&RPSDQ\QRUGRHVLWLQDQ\PDQQHUZDUUDQWFHUWLI\RU
HQGRUVHWKHFRUUHFWQHVVRUFRPSOHWHQHVVRIDQ\RIWKHFRQWHQWVRIWKLV3URVSHFWXVQRUGRHVLWZDUUDQWWKDW
WKH1&'VZLOOEHOLVWHGRUZLOOFRQWLQXHWREHOLVWHGRQWKH%6(
J ,QFDVHRIDSSDUHQWGDWDHQWU\HUURUE\HLWKHUWKH 0HPEHUVRIWKH6\QGLFDWHRUWKH7UDGLQJ0HPEHUVLQ
HQWHULQJWKH $SSOLFDWLRQ)RUPQXPEHULQWKHLUUHVSHFWLYHVFKHGXOHVRWKHUWKLQJVUHPDLQLQJXQFKDQJHG
WKH$SSOLFDWLRQ)RUPPD\EHFRQVLGHUHGDVYDOLGDQGVXFKH[FHSWLRQVPD\EHUHFRUGHGLQPLQXWHVRIWKH
PHHWLQJVXEPLWWHGWRWKH%6(
K 2QO\$SSOLFDWLRQVWKDWDUHXSORDGHGRQWKHRQOLQHV\VWHPRIWKH%6(VKDOOEHFRQVLGHUHGIRU$OORWPHQW
*HQHUDO,QVWUXFWLRQV
'R¶V
&KHFNLI\RXDUHHOLJLEOHWRDSSO\
5HDGDOOWKHLQVWUXFWLRQVFDUHIXOO\DQGFRPSOHWHWKH$SSOLFDWLRQ)RUP
,IWKH$OORWPHQWRIWKH 1&'VLVVRXJKWLQGHPDWHULDOL]HGIRUPHQVXUHWKDWWKHGHWDLOVDERXW'HSRVLWRU\
3DUWLFLSDQWDQGEHQHILFLDU\DFFRXQWDUHFRUUHFWDQGWKHEHQHILFLDU\DFFRXQWLVDFWLYH
$SSOLFDWLRQVDUHUHTXLUHGWREHLQVLQJOHRUMRLQWQDPHVQRWPRUHWKDQWKUHH
,QFDVHRIDQ+8)DSSO\LQJWKURXJKLWV.DUWDWKH$SSOLFDQWLVUHTXLUHGWRVSHFLI\WKHQDPHRIDQ$SSOLFDQW
LQWKH$SSOLFDWLRQ)RUPDVµ;<=+LQGX8QGLYLGHG)DPLO\DSSO\LQJWKURXJK345¶ZKHUH345LVWKHQDPH
RIWKH.DUWD
(QVXUH WKDW $SSOLFDWLRQV DUH VXEPLWWHG WR WKH 0HPEHUV RI WKH 6\QGLFDWH 7UDGLQJ 0HPEHUV RU WKH
'HVLJQDWHG %UDQFKHV RI WKH 6&6%V DV WKH FDVH PD\ EH EHIRUH WKH FORVXUH RI DSSOLFDWLRQ KRXUV RQ WKH
,VVXH&ORVLQJ'DWH
(QVXUH WKDW WKH $SSOLFDWLRQ )RUPV IRU QRQ$6%$ $SSOLFDQWV DUH VXEPLWWHG DW WKH FROOHFWLRQ FHQWUHV
SURYLGHG LQ WKH $SSOLFDWLRQ )RUPV EHDULQJ WKH VWDPS RI D 0HPEHU RI WKH 6\QGLFDWH RU D 7UDGL QJ
0HPEHUVRIWKH%6(DVWKHFDVHPD\EH
(QVXUH WKDW WKH $SSOLFDQW¶V QDPHV IRU $SSOLFDWLRQV IRU WKH 1&'V LQ GHPDWHULDOLVHG IRUP JLYHQ LQ WKH
$SSOLFDWLRQ )RUP LV H[DFWO\ WKH VDPH DV WKH QDPHV LQ ZKLFK WKH EHQHILFLDU\ DFFRXQW LV KHOG ZLWK WKH
'HSRVLWRU\3DUWLFLSDQW,QFDVHWKH$SSOLFDWLRQ)RUPLVVXEPLWWHGLQMRLQWQDPHVHQVXUHWKDWWKHEHQHILFLDU\
DFFRXQWLVDOVRKHOGLQVDPHMRLQWQDPHVDQGVXFKQDPHVDUHLQWKHVDPHVHTXHQFHLQZKLFKWKH\DSSHDULQ
WKH$SSOLFDWLRQ)RUP
(QVXUHWKDW\RXKDYHIXQGVHTXDOWRRUPRUHWKDQWKH$SSOLFDWLRQ$PRXQWLQ\RXU$6%$$FFRXQWEHIRUH
VXEPLWWLQJWKH$SSOLFDWLRQ)RUPIRU$6%$$SSOLFDWLRQV
(QVXUHWKDW\RXPHQWLRQ\RXU3$1LQWKH$SSOLFDWLRQ)RUP,QFDVHRIMRLQWDSSOLFDQWVWKH3$1RIDOOWKH
$SSOLFDQWVVKRXOGEHSURYLGHGDQGIRU+8)V3$1RIWKH+8)VKRXOGEHSURYLGHG,QFDVHRI$SSOLFDQWV
ZKRDUHPLQRUVWKH3$1RIWKHPLQRUPXVWEHSURYLGHG$Q\$SSOLFDWLRQ)RUPZLWKRXWWKH3$1LVOLDEOH
WR EH UHMHFWHG ,Q FDVH RI $SSOLFDWLRQV IRU $OORWPHQW LQ SK\VLFDO IRUP $SSOLFDQWV VKRXOG VXEPLW D VHOI
FHUWLILHG FRS\ RI WKHLU 3$1 FDUG DV SDUW RI WKH .<& GRFXPHQWV $SSOLFDQWV VKRXOG QRW VXEPLW WKH *,5
1XPEHULQVWHDGRIWKH3$1DVWKH$SSOLFDWLRQLVOLDEOHWREHUHMHFWHGRQWKLVJURXQG+RZHYHU$SSOLFDWLRQV
RQEHKDOIRIWKH&HQWUDORU6WDWH*RYHUQPHQWRIILFLDOVDQGWKHRIILFLDOVDSSRLQWHGE\WKHFRXUWVLQWHUPVRID
6(%,FLUFXODUGDWHG-XQHDQG$SSOLFDQWVUHVLGLQJLQWKH VWDWHRI6LNNLPZKRLQWHUPVRID6(%,
FLUFXODU GDWHG -XO\ PD\ EH H[HPSW IURP VSHFLI\LQJ WKHLU 3$1 IRU WUDQVDFWLQJ LQ WKH VHFXULWLHV
PDUNHW
(QVXUHWKDWWKH'HPRJUDSKLF'HWDLOVIRU $SSOLFDWLRQVIRUWKH1&'VLQGHPDWHULDOLVHGIRUPDVSURYLGHG
LQWKH$SSOLFDWLRQ)RUPDUHXSGDWHGWUXHDQGFRUUHFWLQDOOUHVSHFWV
(QVXUH WKDW \RX UHTXHVW IRU DQG UHFHLYH D 756 IRU DOO \RXU $SSOLFDWLRQV DQG DQ DFNQRZOHGJHPHQW DV D
SURRIRIKDYLQJEHHQDFFHSWHG
(QVXUH WKDW \RX KDYH REWDLQHG DOO QHFHVVDU\ DSSURYDOV IURP WKH UHOHYDQW VWDWXWRU\ DQGRU UHJXODWRU\
DXWKRULWLHVWRDSSO\IRUVXEVFULEHWRDQGRUVHHN$OORWPHQWRIWKH1&'V
(QVXUH WKDW VLJQDWXUHV RWKHU WKDQ LQ WKH ODQJXDJHV VSHFLILHG LQ WKH (LJKWK 6FKHGXOH WR WKH &RQVWLWXWLRQ RI
,QGLDLVDWWHVWHGE\D0DJLVWUDWHRUD1RWDU\3XEOLFRUD6SHFLDO([HFXWLYH0DJLVWUDWHXQGHURIILFLDOVHDO
$SSOLFDQWV RWKHU WKDQ $6%$ $SSOLFDQWV DUH UHTXHVWHG WR ZULWH WKHLU QDPHV DQG $SSOLFDWLRQ
QXPEHURQWKHUHYHUVHRIWKHLQVWUXPHQWVE\ZKLFKWKHSD\PHQWVDUHPDGH
$OO$SSOLFDQWVDUHUHTXHVWHGWRWLFNWKHUHOHYDQWFROXPQ³&DWHJRU\RI,QYHVWRU´LQWKH$SSOLFDWLRQ)RUP
7LFNWKH6HULHVRI1&'VLQWKH$SSOLFDWLRQ)RUPWKDW\RXZLVKWRDSSO\IRUDQG
7KH 5HVHUYH %DQN RI ,QGLD KDV LVVXHG VWDQGDUG RSHUDWLQJ SURFHGXUH LQ WHUPV RI SDUDJUDSK D RI 5%,
FLUFXODUQXPEHU'366&2&+'1RGDWHG-XO\GHWDLOLQJWKHSURFHGXUHIRU
SURFHVVLQJ&76DQG1RQ&76LQVWUXPHQWVLQWKHWKUHH&76JULGORFDWLRQV$VSHUWKLVFLUFXODU
SURFHVVLQJ RI QRQ&76 FKHTXHV VKDOO EH GRQH RQO\ RQ WKUHH GD\V RI WKH ZHHN $V SUHVFULEHGE\ WKH 'HEW
$SSOLFDWLRQ&LUFXODUWKH1&'VDUHUHTXLUHGWREHOLVWHGZLWKLQ:RUNLQJ'D\VRIWKH,VVXH&ORVLQJ'DWH
,QRUGHUWRHQDEOHFRPSOLDQFHZLWKWKHDERYHWLPHOLQHVLQYHVWRUVDUHDGYLVHGWRXVH&76FKHTXHVRUXVHWKH
$6%$ IDFLOLW\ WR PDNH SD\PHQWV LQ WKH ,VVXH ,QYHVWRUV XVLQJ QRQ&76 FKHTXHV DUH FDXWLRQHG WKDW
$SSOLFDWLRQV DFFRPSDQLHG E\ VXFK FKHTXHV DUH OLDEOH WR EH UHMHFWHG GXH WR DQ\ FOHDULQJ GHOD\V EH\RQG :RUNLQJ'D\VIURPWKH,VVXH&ORVLQJ'DWHLQWHUPVRIWKHDIRUHVDLGFLUFXODU
'RQ¶WV
'RQRWDSSO\IRUORZHUWKDQWKHPLQLPXP$SSOLFDWLRQVL]H
'RQRWSD\WKH$SSOLFDWLRQDPRXQWLQFDVKE\PRQH\RUGHUSRVWDORUGHUVWRFNLQYHVW 'RQRWVHQGWKH$SSOLFDWLRQ)RUPVE\SRVWLQVWHDGVXEPLWWKHVDPHWRWKH 0HPEHUVRIWKH6\QGLFDWHDQG
7UDGLQJ0HPEHUVRUWKH6&6%VDVWKHFDVHPD\EHRQO\
'RQRWVXEPLW$SSOLFDWLRQ)RUPVWRWKH(VFURZ&ROOHFWLRQ%DQNVXQOHVVVXFK(VFURZ&ROOHFWLRQ%DQN
LVDOVRDQ6&6%
'R QRW VXEPLW WKH *,5 QXPEHU LQVWHDG RI WKH 3$1 DV WKH $SSOLFDWLRQ LV OLDEOH WR EH UHMHFWHG RQ WKLV
JURXQG
'R QRW VXEPLW LQFRUUHFW GHWDLOV RI WKH '3 ,' &OLHQW ,' DQG 3$1 RU SURYLGH GHWDLOV IRU D EHQHILFLDU\
DFFRXQWZKLFKLVVXVSHQGHGRUIRUZKLFKGHWDLOVFDQQRWEHYHULILHGE\WKH5HJLVWUDU
'R QRW ILOO XS WKH $SSOLFDWLRQ )RUP VXFK WKDW WKH 1&'V DSSOLHG IRU H[FHHGV WKH ,VVXH VL]H DQGRU
LQYHVWPHQWOLPLWRUPD[LPXPQXPEHURI1&'VWKDWFDQEHKHOGXQGHUWKHDSSOLFDEOHODZVRUUHJXODWLRQV
RUPD[LPXPDPRXQWSHUPLVVLEOHXQGHUWKHDSSOLFDEOHUHJXODWLRQV
'RQRWVXEPLW$SSOLFDWLRQVRQSODLQSDSHURURQLQFRPSOHWHRULOOHJLEOH$SSOLFDWLRQ)RUPV
'RQRWVXEPLWDQ$SSOLFDWLRQLQFDVH\RXDUHQRWHOLJLEOHWRDFTXLUHWKH 1&'VXQGHUDSSOLFDEOHODZRU
\RXUUHOHYDQWFRQVWLWXWLRQDOGRFXPHQWVRURWKHUZLVH 'RQRWVXEPLWWKH$SSOLFDWLRQ)RUPVZLWKRXWWKH$SSOLFDWLRQ$PRXQWDQG
'RQRWDSSO\LI\RXDUHQRWFRPSHWHQWWRFRQWUDFWXQGHUWKH,QGLDQ&RQWUDFW$FW $GGLWLRQDOLQVWUXFWLRQVVSHFLILFIRU$6%$$SSOLFDQWV
'R¶V
%HIRUH VXEPLWWLQJ WKH SK\VLFDO $SSOLFDWLRQ )RUP ZLWK WKH 0HPEHU RI WKH 6\QGLFDWH DW WKH 6\QGLFDWH
$6%$ $SSOLFDWLRQ /RFDWLRQV HQVXUH WKDW WKH 6&6% ZKRVH QDPH KDV EHHQ ILOOHG LQ WKH $SSOLFDWLRQ
)RUPKDVQDPHGDEUDQFKLQWKDWFHQWUH
)RU$6%$$SSOLFDQWVDSSO\LQJWKURXJK0HPEHUVRIWKH6\QGLFDWHHQVXUHWKDW\RXU$SSOLFDWLRQ)RUP
LV VXEPLWWHGWRWKH 0HPEHUVRIWKH6\QGLFDWHDWWKH 6\QGLFDWH $6%$ $SSOLFDWLRQ/RFDWLRQVDQG QRWWR
WKH(VFURZ&ROOHFWLRQ%DQNVDVVXPLQJWKDWVXFKEDQNLVQRWD6&6%WRRXU&RPSDQ\WKH 5HJLVWUDU
RU7UDGLQJ0HPEHUV
)RU$6%$ $SSOLFDQWVDSSO\LQJWKURXJKWKH 6&6%VHQVXUH WKDW \RXU $SSOLFDWLRQ)RUPLV VXEPLWWHGDWD
'HVLJQDWHG%UDQFKRIWKH6&6%ZKHUHWKH$6%$$FFRXQWLVPDLQWDLQHGDQGQRWWRWKH(VFURZ&ROOHFWLRQ
%DQNV DVVXPLQJ WKDW VXFK EDQN LV QRW D 6&6% WR RXU &RPSDQ\ WKH 5HJLVWUDU RU WKH 0HPEHUV RI WKH
6\QGLFDWHRU7UDGLQJ0HPEHUV
(QVXUHWKDWWKH$SSOLFDWLRQ)RUPLVVLJQHGE\WKH$6%$$FFRXQWKROGHULQFDVHWKH$6%$$SSOLFDQW
LVQRWWKHDFFRXQWKROGHU (QVXUHWKDW\RXKDYHPHQWLRQHGWKHFRUUHFW$6%$$FFRXQWQXPEHULQWKH$SSOLFDWLRQ)RUP
(QVXUHWKDW\RXKDYHIXQGVHTXDOWRWKH $SSOLFDWLRQ$PRXQWLQWKH$6%$$FFRXQWEHIRUHVXEPLWWLQJ
WKH $SSOLFDWLRQ )RUP WR WKH UHVSHFWLYH 'HVLJQDWHG %UDQFK RU WR WKH 0HPEHUVRI WKH 6\QGLFDWH DW WKH
6\QGLFDWH$6%$$SSOLFDWLRQ/RFDWLRQVRUWRWKH7UDGLQJ0HPEHUVDVWKHFDVHPD\EH
(QVXUH WKDW \RX KDYH FRUUHFWO\ WLFNHG SURYLGHG RU FKHFNHG WKH DXWKRULVDWLRQ ER[ LQ WKH $SSOLFDWLRQ
)RUP RU KDYH RWKHUZLVH SURYLGHG DQ DXWKRULVDWLRQ WR WKH 6&6% YLD WKH HOHFWURQLF PRGH IRU WKH
'HVLJQDWHG %UDQFK WR EORFN IXQGV LQ WKH $6%$ $FFRXQW HTXLYDOHQW WR WKH $SSOLFDWLRQ $PRXQW
PHQWLRQHGLQWKH$SSOLFDWLRQ)RUPDQG
(QVXUHWKDW\RXUHFHLYHDQDFNQRZOHGJHPHQWIURPWKH'HVLJQDWHG%UDQFKRUWKHFRQFHUQHGPHPEHURI
WKH6\QGLFDWHRUWKH7UDGLQJ0HPEHUDVWKHFDVHPD\EHIRUWKHVXEPLVVLRQRIWKH$SSOLFDWLRQ)RUP
'RQ¶WV
'R QRW PDNH SD\PHQW RI WKH $SSOLFDWLRQ $PRXQWV LQ DQ\ PRGH RWKHU WKDQ WKURXJK EORFNLQJ RI WKH
$SSOLFDWLRQ$PRXQWVLQWKH$6%$$FFRXQWVVKDOOQRWEHDFFHSWHGXQGHUWKH$6%$SURFHVV
'RQRWVXEPLWWKH$SSOLFDWLRQ)RUPZLWKD0HPEHURIWKH6\QGLFDWHDWDORFDWLRQRWKHUWKDQWKH6\QGLFDWH
$6%$$SSOLFDWLRQ/RFDWLRQV
'RQRWVHQG\RXUSK\VLFDO$SSOLFDWLRQ)RUPE\SRVW,QVWHDGVXEPLWWKHVDPHZLWKD'HVLJQDWHG%UDQFKRUD
PHPEHURIWKH6\QGLFDWHDWWKH6\QGLFDWH$6%$$SSOLFDWLRQ/RFDWLRQVRUD7UDGLQJ0HPEHUDVWKHFDVH
PD\EHDQG
'RQRWVXEPLWPRUHWKDQILYH$SSOLFDWLRQ)RUPVSHU$6%$$FFRXQW
$SSOLFDWLRQVVKDOOEHDFFHSWHGRQO\EHWZHHQDPDQGSP,QGLDQ6WDQGDUG7LPHRUVXFKH[WHQGHG
WLPH DV PD\ EH SHUPLWWHG E\ WKH %6( GXULQJ WKH ,VVXH 3HULRG RQ DOO GD\V EHWZHHQ 0RQGD\ DQG )ULGD\ ERWK
LQFOXVLYH EDUULQJ SXEOLF KROLGD\V DW WKH &ROOHFWLRQ &HQWUHV RU ZLWK WKH 0HPEHUV RI WKH 6\QGLFDWH RU 7UDGLQJ
0HPEHUVDWWKH6\QGLFDWH$6%$$SSOLFDWLRQ/RFDWLRQVDQGWKH'HVLJQDWHG%UDQFKHVRI6&6%VDVPHQWLRQHGRQ
WKH$SSOLFDWLRQ)RUP2QWKH,VVXH&ORVLQJ'DWH$SSOLFDWLRQVVKDOOEHDFFHSWHGRQO\EHWZHHQDPDQG
SP DQG VKDOO EH XSORDGHG XQWLO SP RU VXFK H[WHQGHG WLPH DV PD\ EH SHUPLWWHG E\ WKH %6( ,W LV
FODULILHGWKDWWKH$SSOLFDWLRQVQRWXSORDGHGLQWKHHOHFWURQLFDSSOLFDWLRQV\VWHPRIWKH%6(ZRXOGEHUHMHFWHG
'XH WR OLPLWDWLRQ RI WLPH DYDLODEOH IRU XSORDGLQJ WKH $SSOLFDWLRQV RQ WKH ,VVXH &ORVLQJ 'DWH $SSOLFDQWV DUH
DGYLVHGWRVXEPLWWKHLU$SSOLFDWLRQVRQHGD\SULRUWRWKH,VVXH&ORVLQJ'DWHDQGLQDQ\FDVHQRODWHUWKDQ
SPRQWKH,VVXH&ORVLQJ'DWH$OOWLPHVPHQWLRQHGLQWKLV3URVSHFWXVDUH,QGLDQ6WDQGDUG7LPHV$SSOLFDQWVDUH
FDXWLRQHG WKDW LQ WKH HYHQW D ODUJH QXPEHU RI $SSOLFDWLRQV DUH UHFHLYHG RQ WKH ,VVXH &ORVLQJ 'DWH VRPH
$SSOLFDWLRQVPD\QRWJHWXSORDGHGGXHWRODFNRIVXIILFLHQWWLPH6XFK$SSOLFDWLRQVWKDWFDQQRWEHXSORDGHGZLOO
QRW EH FRQVLGHUHG IRU DOORFDWLRQ XQGHU WKH ,VVXH $SSOLFDWLRQV ZLOO EH DFFHSWHG RQO\ RQ %XVLQHVV 'D\V LH
0RQGD\WR)ULGD\H[FOXGLQJDQ\SXEOLFKROLGD\1HLWKHURXU&RPSDQ\QRUWKH/HDG0DQDJHUV/HDG%URNHUV
RU 7UDGLQJ 0HPEHUV DUH OLDEOH IRU DQ\ IDLOXUH LQ XSORDGLQJ WKH $SSOLFDWLRQV GXH WR IDLOXUH LQ DQ\
VRIWZDUHKDUGZDUHV\VWHPRURWKHUZLVH
$GGLWLRQDOLQVWUXFWLRQVVSHFLILFIRU$SSOLFDQWVVHHNLQJ$OORWPHQWRIWKH1&'VLQSK\VLFDOIRUP
$Q\$SSOLFDQWZKRZLVKHVWRVXEVFULEHWRWKH1&'VLQSK\VLFDOIRUPVKDOOXQGHUWDNHWKHIROORZLQJVWHSV
3OHDVH FRPSOHWH WKH $SSOLFDWLRQ )RUP LQ DOO UHVSHFWV E\ SURYLGLQJ DOO WKH LQIRUPDWLRQ LQFOXGLQJ
3$1 DQG 'HPRJUDSKLF 'HWDLOV +RZHYHU GR QRW SURYLGH WKH 'HSRVLWRU\ 3DUWLFLSDQW GHWDLOV LQ WKH
$SSOLFDWLRQ )RUP 7KH UHTXLUHPHQW IRU SURYLGLQJ 'HSRVLWRU\ 3DUWLFLSDQW GHWDLOV VKDOO EH PDQGDWRU\ RQO\
IRUWKH$SSOLFDQWVZKRZLVKWRVXEVFULEHWRWKH1&'VLQGHPDWHULDOLVHGIRUP
3OHDVHSURYLGHWKHIROORZLQJGRFXPHQWVDORQJZLWKWKH$SSOLFDWLRQ)RUP
D 6HOIDWWHVWHGFRS\RIWKH3$1FDUG
E 6HOIDWWHVWHGFRS\RI\RXUSURRIRIUHVLGHQFH$Q\RIWKHIROORZLQJGRFXPHQWVVKDOOEHFRQVLGHUHGDVD
YHULILDEOHSURRIRIUHVLGHQFH
UDWLRQFDUGLVVXHGE\WKH*R,RU
YDOLGGULYLQJOLFHQVHLVVXHGE\DQ\WUDQVSRUWDXWKRULW\RIWKH5HSXEOLFRI,QGLDRU
HOHFWULFLW\ELOOQRWROGHUWKDQWKUHHPRQWKVRU
ODQGOLQHWHOHSKRQHELOOQRWROGHUWKDQWKUHHPRQWKVRU
YDOLGSDVVSRUWLVVXHGE\WKH*R,RU
YRWHU¶VLGHQWLW\FDUGLVVXHGE\WKH*R,RU
SDVVERRNRUODWHVWEDQNVWDWHPHQWLVVXHGE\DEDQNRSHUDWLQJLQ,QGLDRU
UHJLVWHUHGOHDYHDQGOLFHQVHDJUHHPHQWRUDJUHHPHQWIRUVDOHRUUHQWDJUHHPHQWRUIODWPDLQWHQDQFH
ELOORU
$$'+$5OHWWHU
6HOIDWWHVWHG FRS\ RI D FDQFHOOHG FKHTXH RI WKH EDQN DFFRXQW WR ZKLFK WKH DPRXQWV SHUWDLQLQJ WR
SD\PHQWRIUHIXQGVLQWHUHVWDQGUHGHPSWLRQDVDSSOLFDEOHVKRXOGEHFUHGLWHG
,QDEVHQFHRIWKHFDQFHOOHGFKHTXHRXU&RPSDQ\PD\UHMHFWWKH$SSOLFDWLRQRULWPD\FRQVLGHUWKHEDQN
GHWDLOV DV JLYHQ RQ WKH $SSOLFDWLRQ )RUP DW LWV VROH GLVFUHWLRQ ,Q VXFK FDVH WKH &RPSDQ\ /HDG
0DQDJHUVDQG5HJLVWUDUVKDOOQRWEHOLDEOHIRUDQ\GHOD\VHUURUVLQSD\PHQWRIUHIXQGDQGRULQWHUHVW
7KH $SSOLFDQW VKDOO EH UHVSRQVLEOH IRU SURYLGLQJ WKH DERYH LQIRUPDWLRQ DFFXUDWHO\ 'HOD\V RU IDLOXUHLQ FUHGLW
RI WKH SD\PHQWV GXH WR LQDFFXUDWH GHWDLOV VKDOO EH DW WKH VROH ULVN RI WKH $SSOLFDQWV DQGQHLWKHUWKH/HDG
0DQDJHUVQRURXU&RPSDQ\VKDOOKDYHDQ\UHVSRQVLELOLW\DQGXQGHUWDNHDQ\OLDELOLW\IRUWKHVDPH$SSOLFDWLRQV
IRU $OORWPHQW RI WKH 1&'VLQ SK\VLFDO IRUP ZKLFK DUH QRW DFFRPSDQLHG ZLWK WKHDIRUHVWDWHGGRFXPHQWV
PD\EHUHMHFWHGDWWKHVROHGLVFUHWLRQRIRXU&RPSDQ\
,QUHODWLRQWRWKHLVVXDQFHRIWKH1&'VLQSK\VLFDOIRUPSOHDVHQRWHWKHIROORZLQJ
$Q $SSOLFDQW KDV WKH RSWLRQ WR VHHN $OORWPHQW RI 1&'V LQ HLWKHU GHPDWHULDOLVHG RU SK\VLFDO PRGH 1R
SDUWLDO$SSOLFDWLRQIRUWKH1&'VVKDOOEHSHUPLWWHGDQGLVOLDEOHWREHUHMHFWHG
,QFDVHRI1&'VWKDWDUHEHLQJLVVXHGLQSK\VLFDOIRUPRXU&RPSDQ\ZLOOLVVXHRQHFHUWLILFDWHWRWKHKROGHUV
RIWKH1&'VIRUWKHDJJUHJDWHDPRXQWRIWKH1&'VIRUHDFKRIWKH6HULHVRI1&'VWKDWDUHDSSOLHGIRUHDFK
VXFKFHUWLILFDWHD³&RQVROLGDWHG1&'&HUWLILFDWH´
$Q\ $SSOLFDQW ZKR SURYLGHV WKH 'HSRVLWRU\ 3DUWLFLSDQW GHWDLOV LQ WKH $SSOLFDWLRQ )RUP VKDOO EH
$OORWWHG WKH 1&'V LQ GHPDWHULDOLVHG IRUP RQO\ 6XFK $SSOLFDQW VKDOO QRW EH $OORWWHG WKH 1&'V LQ
SK\VLFDOIRUP
2XU&RPSDQ\VKDOOGLVSDWFKWKH&RQVROLGDWHG1&'&HUWLILFDWHWRWKHDGGUHVVRIWKH$SSOLFDQWSURYLGHGLQ
WKH$SSOLFDWLRQ)RUP
$OO WHUPVDQGFRQGLWLRQVGLVFORVHGLQUHODWLRQ WRWKH1&'VKHOG LQSK\VLFDOIRUPSXUVXDQW WRUHPDWHULDOLVDWLRQ
VKDOOEHDSSOLFDEOHPXWDWLVPXWDQGLVWRWKH1&'VLVVXHGLQSK\VLFDOIRUP
&RQVROLGDWHGOLVWRIGRFXPHQWVUHTXLUHGIRUYDULRXVFDWHJRULHV
)RU WKH VDNH RI VLPSOLFLW\ ZH KHUHE\ SURYLGH WKH GHWDLOV RI GRFXPHQWV UHTXLUHG WR EH VXEPLWWHG E\ YDULRXV
FDWHJRULHVRI$SSOLFDQWVZKLOHVXEPLWWLQJWKH$SSOLFDWLRQ)RUP
7\SHRI,QYHVWRUV
3XEOLF ILQDQFLDO LQVWLWXWLRQV VWDWH LQGXVWULDO GHYHORSPHQW
FRUSRUDWLRQV VWDWXWRU\ ERGLHV FRUSRUDWLRQV FRPSDQLHV
OLPLWHG OLDELOLW\ SDUWQHUVKLSV VRFLHWLHV ,QGLDQ VFLHQWLILF
DQGRU LQGXVWULDO UHVHDUFK RUJDQL]DWLRQV ZKLFK DUH
DXWKRUL]HGWRLQYHVWLQWKH1&'VDQGLQVXUDQFHIXQGV
&RPPHUFLDO EDQNV FRRSHUDWLYH EDQNV DQG UHJLRQDO UXUDO
EDQNV
,QVXUDQFHFRPSDQLHVUHJLVWHUHGZLWKWKH,5'$
1DWLRQDO,QYHVWPHQW)XQG
3URYLGHQW IXQGV SHQVLRQ IXQGV JUDWXLW\ IXQGV DQG
VXSHUDQQXDWLRQIXQGV
0XWXDO)XQGV
,QGLDQ 9HQWXUH &DSLWDO )XQGV DQG $OWHUQDWLYH ,QYHVWPHQW
)XQGV
$SSOLFDQWVWKURXJKDSRZHURIDWWRUQH\XQGHU&DWHJRU\,
'RFXPHQWVWREHVXEPLWWHGZLWKDSSOLFDWLRQIRUP
IRU$SSOLFDQWVDSSO\LQJIRU1&'VLQSK\VLFDOIRUP
WKHVHGRFXPHQWVKDYHWREHVXEPLWWHGLQDGGLWLRQWRWKH
.<&GRFXPHQWVUHTXLUHG
7KH $SSOLFDWLRQ PXVW EH DFFRPSDQLHG E\ FHUWLILHG WUXH
FRSLHVRI
$Q\ $FW 5XOHV XQGHU ZKLFK WKH\ DUH
LQFRUSRUDWHG
%RDUG5HVROXWLRQDXWKRUL]LQJLQYHVWPHQWV
6SHFLPHQVLJQDWXUHRIDXWKRUL]HGSHUVRQV
7KH $SSOLFDWLRQ PXVW EH DFFRPSDQLHG E\ FHUWLILHG WUXH
FRSLHVRI
DERDUGUHVROXWLRQDXWKRULVLQJLQYHVWPHQWV
DOHWWHURIDXWKRULVDWLRQ
6SHFLPHQVLJQDWXUHRIDXWKRUL]HGSHUVRQV
7KH $SSOLFDWLRQ PXVWEHDFFRPSDQLHGE\FHUWLILHGFRSLHV
RI
$Q\ $FW5XOHV XQGHU ZKLFK WKH\ DUH
LQFRUSRUDWHG
5HJLVWUDWLRQGRFXPHQWVLH,5'$UHJLVWUDWLRQ
5HVROXWLRQ DXWKRUL]LQJ LQYHVWPHQW DQG
FRQWDLQLQJRSHUDWLQJLQVWUXFWLRQV5HVROXWLRQ
6SHFLPHQVLJQDWXUHRIDXWKRUL]HGSHUVRQV
7KH $SSOLFDWLRQ PXVWEHDFFRPSDQLHGE\FHUWLILHGFRSLHV
RI
5HVROXWLRQ DXWKRUL]LQJ LQYHVWPHQW DQG
FRQWDLQLQJRSHUDWLQJLQVWUXFWLRQV5HVROXWLRQ
6SHFLPHQVLJQDWXUHRIDXWKRUL]HGSHUVRQV
7KH $SSOLFDWLRQ PXVW EH DFFRPSDQLHG E\ FHUWLILHG WUXH
FRSLHVRI
$Q\ $FW5XOHV XQGHU ZKLFK WKH\ DUH
LQFRUSRUDWHG
3RZHU RI DWWRUQH\ LQ IDYRXU RI RQH RU PRUH
WUXVWHHV
%RDUGUHVROXWLRQDXWKRUL]LQJLQYHVWPHQWV
6SHFLPHQVLJQDWXUHRIDXWKRUL]HGSHUVRQ
6XFK RWKHU GRFXPHQWV HYLGHQFLQJ UHJLVWUDWLRQ
WKHUHRI XQGHU DSSOLFDEOH VWDWXWRU\UHJXODWRU\
UHTXLUHPHQWV
$ FHUWLILHG FRS\ RI WKH UHJLVWHUHG LQVWUXPHQW
IRUFUHDWLRQRIVXFKIXQGWUXVW
$Q\ WD[ H[HPSWLRQ FHUWLILFDWH LVVXHG E\
,QFRPH7D[DXWKRULWLHV
7KH $SSOLFDWLRQ PXVW EH DOVR DFFRPSDQLHG E\ FHUWLILHG
WUXHFRSLHVRI
6(%, UHJLVWUDWLRQ &HUWLILFDWH DQG WUXVW GHHG
6(%,5HJLVWUDWLRQ
5HVROXWLRQ DXWKRUL]LQJ LQYHVWPHQW DQG
FRQWDLQLQJRSHUDWLQJLQVWUXFWLRQV
6SHFLPHQVLJQDWXUHRIDXWKRUL]HGSHUVRQV
7KH $SSOLFDWLRQ PXVW EH DOVR DFFRPSDQLHG E\ FHUWLILHG
WUXHFRSLHVRI
6(%,UHJLVWUDWLRQFHUWLILFDWH
5HVROXWLRQDXWKRUL]LQJLQYHVWPHQWV
6SHFLPHQVLJQDWXUHRIDXWKRUL]HGSHUVRQV
7KH $SSOLFDWLRQ PXVW EH DOVR DFFRPSDQLHG E\ FHUWLILHG
WUXHFRSLHVRI
7\SHRI,QYHVWRUV
'RFXPHQWVWREHVXEPLWWHGZLWKDSSOLFDWLRQIRUP
IRU$SSOLFDQWVDSSO\LQJIRU1&'VLQSK\VLFDOIRUP
WKHVHGRFXPHQWVKDYHWREHVXEPLWWHGLQDGGLWLRQWRWKH
.<&GRFXPHQWVUHTXLUHG
$FHUWLILHGFRS\RIWKHSRZHURIDWWRUQH\RUWKH
UHOHYDQWUHVROXWLRQRUDXWKRULW\DVWKHFDVHPD\
EH
$ FHUWLILHG FRS\ RI WKH PHPRUDQGXP RI
DVVRFLDWLRQDQGDUWLFOHVRIDVVRFLDWLRQDQGRUE\H
ODZV DQGRU FKDUWHU GRFXPHQWV DV DSSOLFDEOH
PXVWEHORGJHGDORQJZLWKWKH$SSOLFDWLRQ)RUP
6SHFLPHQ VLJQDWXUH RI SRZHU RI DWWRUQH\
KROGHUDXWKRUL]HG VLJQDWRU\ DV SHU WKH UHOHYDQW
UHVROXWLRQ
1$
7KH $SSOLFDWLRQ PXVW EH DOVR DFFRPSDQLHG E\ FHUWLILHG
WUXHFRSLHVRI
6HOIDWWHVWHGFRS\RI3$1FDUGRI+8)
%DQNGHWDLOVRI+8)LHFRS\RISDVVERRNEDQN
VWDWHPHQWFDQFHOOHG FKHTXH LQGLFDWLQJ +8)
VWDWXVRIWKHDSSOLFDQW
6HOIDWWHVWHG FRS\ RI SURRI RI $GGUHVV RI NDUWD
LGHQWLW\SURRIRINDUWD
7KH $SSOLFDWLRQ PXVW EH DOVR DFFRPSDQLHG E\ FHUWLILHG
WUXHFRSLHVRI
$FHUWLILHGFRS\RIWKHSRZHURIDWWRUQH\KDVWR
EHORGJHZLWKWKH$SSOLFDWLRQ)RUP
7KH $SSOLFDWLRQ PXVW EH DOVR DFFRPSDQLHG E\ FHUWLILHG
WUXHFRSLHVRI
5HVLGHQW,QGLDQLQGLYLGXDOVXQGHU&DWHJRULHV,,DQG,,,
+8)WKURXJKWKH.DUWDXQGHU&DWHJRULHV,,DQG,,,
3RZHURI$WWRUQH\XQGHU&DWHJRU\,,DQG&DWHJRU\,,,
7UXVWV
7KH UHJLVWHUHG LQVWUXPHQW IRU FUHDWLRQ RI VXFK
WUXVW
$SRZHURIDWWRUQH\LIDQ\LQIDYRXURIRQHRU
PRUHWUXVWHHVWKHUHRI
6XFK RWKHU GRFXPHQWV HYLGHQFLQJ UHJLVWUDWLRQ
WKHUHRI XQGHU DSSOLFDEOH VWDWXWRU\UHJXODWRU\
UHTXLUHPHQWV
6XEPLVVLRQRI$SSOLFDWLRQ)RUPV
)RU GHWDLOV LQ UHODWLRQ WR WKH PDQQHU RI VXEPLVVLRQ RI $SSOLFDWLRQ )RUPV SOHDVH VHH VHFWLRQ WLWOHG ³,VVXH
3URFHGXUH±0HWKRGVRI$SSOLFDWLRQ´RQSDJH
27+(5,16758&7,216
-RLQW$SSOLFDWLRQV
$SSOLFDWLRQVPD\EHPDGHLQVLQJOHRUMRLQWQDPHVQRWH[FHHGLQJWKUHH,QWKHFDVHRIMRLQW$SSOLFDWLRQVDOO
SD\PHQWV ZLOOEHPDGHRXWLQIDYRXURIWKH ILUVW $SSOLFDQW$OOFRPPXQLFDWLRQV ZLOOEHDGGUHVVHGWRWKHILUVW
QDPHG$SSOLFDQWZKRVHQDPHDSSHDUVLQWKH$SSOLFDWLRQ)RUPDQGDWWKHDGGUHVVPHQWLRQHGWKHUHLQ
$GGLWLRQDO0XOWLSOH$SSOLFDWLRQV
$Q $SSOLFDQW LV DOORZHG WR PDNH RQH RU PRUH $SSOLFDWLRQV IRU WKH 1&'V IRU WKH VDPH RU GLIIHUHQW 6HULHV RI
1&'V VXEMHFW WR D PLQLPXP $SSOLFDWLRQ VL]H RI ` DQG LQ PXOWLSOHV RI ` WKHUHDIWHU IRU HDFK
$SSOLFDWLRQ$Q\$SSOLFDWLRQIRUDQDPRXQWEHORZWKHDIRUHVDLGPLQLPXP$SSOLFDWLRQVL]HZLOOEHGHHPHGDV
DQLQYDOLG$SSOLFDWLRQDQGVKDOOEHUHMHFWHG+RZHYHUPXOWLSOH$SSOLFDWLRQVE\WKHVDPH$SSOLFDQWEHORQJLQJ
WR&DWHJRU\,,,DJJUHJDWLQJWRDYDOXHH[FHHGLQJ`VKDOOEHJURXSHGLQ&DWHJRU\,,IRUWKHSXUSRVHRI
GHWHUPLQLQJ WKH EDVLV RI DOORWPHQW WR VXFK $SSOLFDQW +RZHYHU DQ\ $SSOLFDWLRQ PDGH E\ DQ\ SHUVRQ LQ KLV
LQGLYLGXDOFDSDFLW\DQGDQ$SSOLFDWLRQPDGHE\VXFKSHUVRQLQKLVFDSDFLW\DVD.DUWDRIDQ+8)DQGRUDVMRLQW
$SSOLFDQWVHFRQGRUWKLUGDSSOLFDQWVKDOOQRWEHGHHPHGWREHDPXOWLSOH$SSOLFDWLRQ
7KH3$1QXPEHUDVSURYLGHGLQWKHUHOHYDQW$SSOLFDWLRQ)RUPVZLOOEHXWLOLVHGIRUWKHSXUSRVHRIJURXSLQJRI
$SSOLFDWLRQVWRGHWHUPLQHPXOWLSOH$SSOLFDWLRQVE\WKHVDPH$SSOLFDQW
'HSRVLWRU\$UUDQJHPHQWV
:H KDYH PDGH GHSRVLWRU\ DUUDQJHPHQWV ZLWK 16'/ DQG &'6/ IRU LVVXH DQG KROGLQJ RI WKH 1&'V LQ
GHPDWHULDOLVHGIRUP,QWKLVFRQWH[W
L 7ULSDUWLWH$JUHHPHQWVGDWHG1RYHPEHUDQG1RYHPEHUEHWZHHQXVWKH5HJLVWUDUWRWKH
,VVXH DQG &'6/ DQG 16'/ UHVSHFWLYHO\ KDYH EHHQ H[HFXWHG IRU RIIHULQJ GHSRVLWRU\ RSWLRQ WR WKH
$SSOLFDQWV
LL ,W PD\ EH QRWHG WKDW 1&'V LQ HOHFWURQLF IRUP FDQ EH WUDGHG RQO\ RQ VWRFN H[FKDQJHV KDYLQJ HOHFWURQLF
FRQQHFWLYLW\ZLWK16'/RU&'6/7KH%6(KDVFRQQHFWLYLW\ZLWK16'/DQG&'6/
LLL ,QWHUHVW RU RWKHU EHQHILWV ZLWK UHVSHFW WR WKH 1&'V KHOG LQ GHPDWHULDOLVHG IRUP ZRXOG EH SDLG WR WKRVH
'HEHQWXUH+ROGHUVZKRVHQDPHVDSSHDURQWKHOLVWRIEHQHILFLDORZQHUVJLYHQE\WKH'HSRVLWRULHVWRXVDV
RQ5HFRUG'DWH,QFDVHRIWKRVH1&'VIRUZKLFKWKHEHQHILFLDORZQHULVQRWLGHQWLILHGE\WKH'HSRVLWRU\
DVRQWKH5HFRUG'DWHZHZRXOGNHHSLQDEH\DQFHWKHSD\PHQWRILQWHUHVWRURWKHUEHQHILWVWLOOVXFKWLPH
WKDW WKH EHQHILFLDO RZQHU LV LGHQWLILHG E\ WKH 'HSRVLWRU\ DQG FRQYH\HG WR XV ZKHUHXSRQ WKH LQWHUHVW RU
EHQHILWVZLOOEHSDLGWRWKHEHQHILFLDULHVDVLGHQWLILHG
LY 7KHWUDGLQJRIWKH1&'VVKDOOEHLQGHPDWHULDOL]HGIRUPRQO\
)RUIXUWKHULQIRUPDWLRQUHODWLQJWR$SSOLFDWLRQVIRU$OORWPHQWRIWKH 1&'VLQGHPDWHULDOLVHGIRUP SOHDVHVHH
VHFWLRQV WLWOHG ³,VVXH 3URFHGXUH ± 0HWKRGV RI $SSOLFDWLRQ´ DQG ³,VVXH 3URFHGXUH ± *HQHUDO ,QVWUXFWLRQV´ RQ
SDJHVDQGUHVSHFWLYHO\
&RPPXQLFDWLRQV
$OO IXWXUH FRPPXQLFDWLRQV LQ FRQQHFWLRQ ZLWK $SSOLFDWLRQV PDGH LQ WKH ,VVXH VKRXOG EH DGGUHVVHG WR WKH
5HJLVWUDUTXRWLQJDOOUHOHYDQWGHWDLOVDVUHJDUGVWKH$SSOLFDQWDQGLWV$SSOLFDWLRQ
$SSOLFDQWVFDQFRQWDFWRXU&RPSOLDQFH2IILFHUDVZHOODVWKHFRQWDFWSHUVRQVRIRXU&RPSDQ\/HDG0DQDJHUVRU
WKH5HJLVWUDULQFDVHRIDQ\SUH,VVXHUHODWHGSUREOHPV,QFDVHRISRVW,VVXHUHODWHGSUREOHPVVXFKDVQRQUHFHLSW
RI $OORWPHQW $GYLFH FUHGLW RI 1&'V LQ GHSRVLWRU\¶V EHQHILFLDU\ DFFRXQW UHIXQG RUGHUV HWF DSSOLFDQWV PD\
FRQWDFW RXU &RPSOLDQFH 2IILFHU DV ZHOO DV WKH FRQWDFW SHUVRQV RI RXU &RPSDQ\/HDG 0DQDJHUV RU 5HJLVWUDU
3OHDVHQRWHWKDW$SSOLFDQWVZKRKDYHDSSOLHGIRUWKH1&'VWKURXJK7UDGLQJ0HPEHUVVKRXOGFRQWDFWWKH%6(LQ
FDVHRIDQ\SRVW,VVXHUHODWHGSUREOHPVVXFKDVQRQUHFHLSWRI$OORWPHQW$GYLFHFUHGLWRI1&'VLQ'HSRVLWRU\¶V
EHQHILFLDU\DFFRXQWUHIXQGRUGHUVHWF
5HMHFWLRQRI$SSOLFDWLRQV
7KH%RDUGRI'LUHFWRUVDQGRUDQ\FRPPLWWHHRIRXU&RPSDQ\UHVHUYHVLWVIXOOXQTXDOLILHGDQGDEVROXWHULJKWWR
DFFHSWRUUHMHFWDQ\$SSOLFDWLRQLQZKROHRULQSDUWDQGLQHLWKHUFDVHZLWKRXWDVVLJQLQJDQ\UHDVRQWKHUHRI
$SSOLFDWLRQPD\EHUHMHFWHGRQRQHRUPRUHWHFKQLFDOJURXQGVLQFOXGLQJEXWQRWUHVWULFWHGWR
1XPEHURI1&'VDSSOLHGIRUEHLQJOHVVWKDQWKHPLQLPXP$SSOLFDWLRQVL]H
$SSOLFDWLRQVQRWEHLQJVLJQHGE\WKHVROHMRLQW$SSOLFDQWV
$SSOLFDWLRQVVXEPLWWHGZLWKRXWSD\PHQWRIWKH$SSOLFDWLRQ$PRXQW
,Q FDVH RI SDUWQHUVKLS ILUPV WKH DSSOLFDWLRQ IRUPV VXEPLWWHG LQ WKH QDPH RI LQGLYLGXDO SDUWQHUV DQGRU
DFFRPSDQLHGE\WKHLQGLYLGXDO¶V3$1UDWKHUWKDQWKH3$1RIWKHSDUWQHUVKLSILUP
$SSOLFDWLRQVVXEPLWWHGZLWKRXWSD\PHQWRIWKHIXOO$SSOLFDWLRQ$PRXQW+RZHYHURXU&RPSDQ\PD\DOORW
1&'V XSWR WKH IXOO YDOXH RI WKH $SSOLFDWLRQ $PRXQW SDLG LQ WKH HYHQW WKDW VXFK $SSOLFDWLRQ $PRXQWV
H[FHHGWKHPLQLPXP$SSOLFDWLRQ6L]HDVVSHFLILHGLQWKLV3URVSHFWXV
,QFDVHRI$SSOLFDQWVDSSO\LQJIRU$OORWPHQWLQSK\VLFDOIRUP GDWHRIELUWKRIWKHVROHILUVW$SSOLFDQWQRW
PHQWLRQHGLQWKH$SSOLFDWLRQ)RUP
,QYHVWRU&DWHJRU\LQWKH$SSOLFDWLRQ)RUPQRWEHLQJWLFNHG
,QFDVHRI$SSOLFDWLRQVIRU$OORWPHQWLQSK\VLFDOIRUPEDQNDFFRXQWGHWDLOVQRWSURYLGHGLQWKH$SSOLFDWLRQ
)RUP
6LJQDWXUHRIWKH$SSOLFDQWPLVVLQJ
$SSOLFDWLRQV E\ SHUVRQV QRW FRPSHWHQW WR FRQWUDFW XQGHU WKH ,QGLDQ &RQWUDFW $FW LQFOXGLQJ D PLQRU
ZLWKRXWWKHQDPHRIDJXDUGLDQ
$SSOLFDWLRQVE\LQGLYLGXDOVRUHQWLWLHVZKRDUHQRQUHVLGHQWV
$SSOLFDWLRQVE\VWRFNLQYHVWRUDFFRPSDQLHGE\FDVKPRQH\RUGHUSRVWDORUGHU
$SSOLFDWLRQVPDGHZLWKRXWPHQWLRQLQJWKH3$1RIWKH$SSOLFDQWH[FHSWIRU&HQWUDODQG6WDWHJRYHUQPHQW
RIILFLDOVRIILFLDOVRIFRXUWVDQGUHVLGHQWVRI6LNNLP
*,5QXPEHUPHQWLRQHGLQWKH$SSOLFDWLRQ)RUPLQVWHDGRI3$1
$SSOLFDWLRQV IRU DPRXQWV JUHDWHU WKDQ WKH PD[LPXP SHUPLVVLEOH DPRXQWV SUHVFULEHG E\ DSSOLFDEOH
UHJXODWLRQV
$SSOLFDWLRQVE\SHUVRQVHQWLWLHVZKRKDYHEHHQGHEDUUHGIURPDFFHVVLQJWKHFDSLWDOPDUNHWVE\6(%,
$SSOLFDWLRQVVXEPLWWHGGLUHFWO\WRWKH(VFURZ&ROOHFWLRQ%DQNVLIVXFK(VFURZ&ROOHFWLRQ%DQNLVQRWDQ
6&6%
$6%$$SSOLFDWLRQVVXEPLWWHGWRWKH0HPEHUVRI6\QGLFDWHRUD7UDGLQJ0HPEHUVDWORFDWLRQVRWKHUWKDQ
WKH6\QGLFDWH$6%$$SSOLFDWLRQ/RFDWLRQVRUDWD'HVLJQDWHG%UDQFKRID6&6%ZKHUHWKH$6%$$FFRXQW
LVQRWPDLQWDLQHGDQG$6%$$SSOLFDWLRQVVXEPLWWHGGLUHFWO\WRDQ(VFURZ&ROOHFWLQJ%DQNDVVXPLQJWKDW
VXFKEDQNLVQRWD6&6%WRRXU&RPSDQ\RUWKH5HJLVWUDUWRWKH,VVXH
)RU $SSOLFDWLRQV IRU $OORWPHQW LQ GHPDWHULDOLVHG IRUP '3 ,' &OLHQW ,' DQG 3$1 PHQWLRQHG LQ WKH
$SSOLFDWLRQ )RUP GR QRW PDWFK ZLWK WKH 'HSRVLWRU\ 3DUWLFLSDQW ,' &OLHQW ,' DQG 3$1 DYDLODEOH LQ WKH
UHFRUGVZLWKWKHGHSRVLWRULHV
,QFDVHRI$SSOLFDQWVDSSO\LQJIRUWKH1&'VLQSK\VLFDOIRUPLIWKHDGGUHVVRIWKH$SSOLFDQWLVQRWSURYLGHG
LQWKH$SSOLFDWLRQ)RUP
&RS\RI.<&GRFXPHQWVQRWSURYLGHGLQFDVHRIDQ$SSOLFDWLRQIRU$OORWPHQWRIWKH1&'VLQSK\VLFDOIRUP
$SSOLFDWLRQ )RUPV IURP $6%$ $SSOLFDQWV QRW EHLQJ VLJQHG E\ WKH $6%$ $FFRXQW KROGHU LI WKH DFFRXQW
KROGHULVGLIIHUHQWIURPWKH$SSOLFDQW
$SSOLFDWLRQVIRUDQDPRXQWEHORZWKHPLQLPXP$SSOLFDWLRQVL]H
$6%$$SSOLFDWLRQVQRWKDYLQJGHWDLOVRIWKH$6%$$FFRXQWWREHEORFNHG
$SSOLFDWLRQVH[FHSWIRU$6%$$SSOLFDWLRQVZKHUHFOHDUIXQGVDUHQRWDYDLODEOHLQ(VFURZ$FFRXQWVDVSHU
ILQDOFHUWLILFDWHVIURP(VFURZ&ROOHFWLRQ%DQNV
$SSOLFDWLRQVE\SHUVRQVSURKLELWHGIURPEX\LQJVHOOLQJRUGHDOLQJLQVKDUHVGLUHFWO\RULQGLUHFWO\E\6(%,RU
DQ\RWKHUUHJXODWRU\DXWKRULW\
$SSOLFDWLRQV E\ $SSOLFDQWV VHHNLQJ $OORWPHQW LQ GHPDWHULDOLVHG IRUP ZKRVH GHPDW DFFRXQWV KDYH EHHQ
VXVSHQGHG IRU FUHGLW
SXUVXDQW WR WKH FLUFXODU LVVXHG E\ 6(%, RQ -XO\ EHDULQJ QXPEHU
&,505''3
1RQ$6%$$SSOLFDWLRQVDFFRPSDQLHGE\PRUHWKDQRQHSD\PHQWLQVWUXPHQW
$SSOLFDWLRQVQRWXSORDGHGRQWKHWHUPLQDOVRIWKH%6(
$SSOLFDWLRQV IRU $OORWPHQW RI 1&'V LQ GHPDWHULDOLVHG IRUP SURYLGLQJ DQ LQRSHUDWLYH GHPDW DFFRXQW
QXPEHU
,Q FDVH RI $SSOLFDWLRQV XQGHU SRZHU RI DWWRUQH\ RU E\ OLPLWHG FRPSDQLHV FRUSRUDWH WUXVW HWF UHOHYDQW
GRFXPHQWVDUHQRWVXEPLWWHGDORQJZLWKWKH$SSOLFDWLRQ)RUP
:LWKUHVSHFWWR$6%$$SSOLFDWLRQVWKH$6%$$FFRXQWQRWKDYLQJFUHGLWEDODQFHWRPHHWWKH$SSOLFDWLRQ
$PRXQWVRUQRFRQILUPDWLRQLVUHFHLYHGIURPWKH6&6%IRUEORFNLQJRIIXQGV
6&6%V PDNLQJ DQ $6%$ $SSOLFDWLRQ D WKURXJK DQ $6%$ $FFRXQW PDLQWDLQHG ZLWK LWV RZQ VHOI RU E
WKURXJK DQ $6%$ DFFRXQW PDLQWDLQHG WKURXJK D GLIIHUHQW 6&6% QRW LQ LWV RZQ QDPH RU F WKURXJK DQ
$6%$$FFRXQWPDLQWDLQHGWKURXJKDGLIIHUHQW6&6%LQLWVRZQQDPHZKLFK$6%$$FFRXQWLVQRWXWLOLVHG
IRUWKHSXUSRVHRIDSSO\LQJLQSXEOLFLVVXHV
:KHUH3$1GHWDLOVLQWKH$SSOLFDWLRQ)RUPDQGDVHQWHUHGLQWRWKHELGGLQJSODWIRUPRIWKH%6(DUHQRWDV
SHUWKHUHFRUGVRIWKH'HSRVLWRULHVDQG
,QFDVHRI$SSOLFDQWVDSSO\LQJIRUWKH1&'VLQSK\VLFDOIRUPLIWKHDGGUHVVRIWKH$SSOLFDQWLVQRWSURYLGHG
LQWKH$SSOLFDWLRQ)RUP
)RU IXUWKHU LQVWUXFWLRQV UHJDUGLQJ $SSOLFDWLRQ IRU WKH 1&'V $SSOLFDQWV DUH UHTXHVWHG WR UHDG WKH $SSOLFDWLRQ
)RUP
$OORWPHQW$GYLFH5HIXQG2UGHUV
,Q FDVH RI $SSOLFDWLRQV RWKHU WKDQ WKRVH PDGH WKURXJK WKH $6%$ SURFHVV WKH XQXWLOLVHG SRUWLRQ RI WKH
$SSOLFDWLRQ$PRXQWVZLOOEHUHIXQGHGWRWKH$SSOLFDQWZLWKLQWZHOYH:RUNLQJ'D\VRIWKH,VVXH&ORVXUH
'DWHWKURXJKDQ\RIWKHIROORZLQJPRGHV
L
'LUHFW&UHGLW±$SSOLFDQWVKDYLQJEDQNDFFRXQWVZLWKWKH%DQNHUVWRWKH,VVXHVKDOOEHHOLJLEOHWRUHFHLYH
UHIXQGVWKURXJKGLUHFWFUHGLW&KDUJHVLIDQ\OHYLHGE\WKHUHOHYDQWEDQNVIRUWKHVDPHZRXOGEHERUQHE\
XV
LL 1(&6±3D\PHQWRIUHIXQGZRXOGEHGRQHWKURXJK1(&6IRU$SSOLFDQWVKDYLQJDQDFFRXQWDWDQ\RIWKH
FHQWUHVZKHUHVXFKIDFLOLW\KDVEHHQPDGHDYDLODEOH7KLVPRGHRISD\PHQWRIUHIXQGVZRXOGEHVXEMHFW
WR DYDLODELOLW\ RI FRPSOHWH EDQN DFFRXQW GHWDLOV LQFOXGLQJ WKH 0,&5 FRGH DV DYDLODEOH IURP WKH
'HSRVLWRULHV7KHSD\PHQWRIUHIXQGVWKURXJKWKLVPRGHZLOOEHGRQHIRU$SSOLFDQWVKDYLQJDEDQNDFFRXQW
DW DQ\ FHQWUH ZKHUH 1(&6 IDFLOLW\ KDV EHHQ PDGH DYDLODEOH VXEMHFWWRDYDLODELOLW\ RI DOO LQIRUPDWLRQ IRU
FUHGLWLQJWKHUHIXQGWKURXJK1(&6
LLL 1()7 ± 3D\PHQW RI UHIXQG VKDOO EH XQGHUWDNHQ WKURXJK 1()7 ZKHUHYHU WKH $SSOLFDQW¶V EDQN KDV EHHQ
DVVLJQHG WKH ,QGLDQ )LQDQFLDO 6\VWHP &RGH ³,)6&´ ZKLFK FDQ EH OLQNHG WR D 0,&5 DOORWWHG WR WKDW
SDUWLFXODUEDQNEUDQFK,)6&&RGHZLOOEHREWDLQHGIURPWKHZHEVLWHRI5%,DVRQDGDWHLPPHGLDWHO\SULRU
WRWKHGDWHRISD\PHQWRIUHIXQGGXO\PDSSHGZLWK0,&5QXPEHUV,QFDVHRIRQOLQHSD\PHQWRUZKHUHYHU
WKH ,QYHVWRUV KDYH UHJLVWHUHG WKHLU QLQH GLJLW 0,&5 QXPEHU DQG WKHLU EDQN DFFRXQW QXPEHU ZLWK WKH
GHSRVLWRU\ SDUWLFLSDQW ZKLOH RSHQLQJ DQGRSHUDWLQJ WKH GHPDW DFFRXQW WKH 0,&5 QXPEHU DQG WKHLU EDQN
DFFRXQWQXPEHUZLOOEHGXO\PDSSHGZLWKWKH,)6&&RGHRIWKDWSDUWLFXODUEDQNEUDQFKDQGWKHSD\PHQWRI
UHIXQGZLOOEHPDGHWRWKH,QYHVWRUVWKURXJKWKLVPHWKRG
LY 57*6 ± ,I WKH UHIXQG DPRXQW H[FHHGV ` $SSOLFDQWV KDYH WKH RSWLRQ WR UHFHLYH UHIXQG WKURXJK
57*6&KDUJHVLIDQ\OHYLHGE\WKHUHIXQGEDQNVIRUWKHVDPHZRXOGEHERUQHE\XV&KDUJHVLIDQ\
OHYLHGE\WKH$SSOLFDQW¶VEDQNUHFHLYLQJWKHFUHGLWZRXOGEHERUQHE\WKH$SSOLFDQW
Y
)RUDOORWKHU$SSOLFDQWVQRWEHLQJ$6%$$SSOLFDQWVUHIXQGRUGHUVZLOOEHGHVSDWFKHGWKURXJKVSHHGSRVW
UHJLVWHUHGSRVW6XFKUHIXQGVZLOOEHPDGHE\FKHTXHVSD\RUGHUVRUGHPDQGGUDIWVGUDZQLQIDYRXURIWKH
VROHILUVW$SSOLFDQWVDQGSD\DEOHDWSDUDWSODFHVZKHUH$SSOLFDWLRQDUHUHFHLYHG%DQNFKDUJHVLIDQ\IRU
HQFDVKLQJVXFKFKHTXHVSD\RUGHUVRUGHPDQGGUDIWVDWRWKHUFHQWUHVZLOOEHSD\DEOHE\WKH$SSOLFDQWV
,Q WKH FDVH RI $SSOLFDQWV RWKHU WKDQ $6%$ $SSOLFDQWV DSSO\LQJ IRU WKH 1&'V LQ GHPDWHULDOLVHG IRUP WKH
5HJLVWUDUZLOOREWDLQIURPWKH'HSRVLWRULHVWKH$SSOLFDQW¶VEDQNDFFRXQWGHWDLOVLQFOXGLQJWKH0,&5FRGHRQ
WKHEDVLVRIWKH'3,'&OLHQW,'DQG3$1SURYLGHGE\WKH$SSOLFDQWVLQWKHLU$SSOLFDWLRQ)RUPV$FFRUGLQJO\
$SSOLFDQWV DUH DGYLVHG WR LPPHGLDWHO\ XSGDWH WKHLU GHWDLOV DV DSSHDULQJ RQ WKH UHFRUGV RI WKHLU 'HSRVLWRU\
3DUWLFLSDQWV )DLOXUH WR GR VR PD\ UHVXOW LQ GHOD\V LQ GLVSDWFK RI UHIXQG RUGHUV RU UHIXQGV WKURXJK HOHFWURQLF
WUDQVIHURIIXQGVDVDSSOLFDEOHDQGDQ\VXFKGHOD\ZLOOEHDWWKH$SSOLFDQW¶VVROHULVNDQGQHLWKHURXU&RPSDQ\
WKH5HJLVWUDUWKH(VFURZ&ROOHFWLRQ%DQNVRUWKH 0HPEHUVRIWKH6\QGLFDWHZLOOEHOLDEOHWRFRPSHQVDWHWKH
$SSOLFDQWVIRUDQ\ORVVHVFDXVHGWRWKHPGXHWRDQ\VXFKGHOD\RUOLDEOHWRSD\DQ\LQWHUHVWIRUVXFKGHOD\
,QFDVHRI$6%$$SSOLFDQWVWKH5HJLVWUDUVKDOOLQVWUXFWWKHUHOHYDQW6&6%WRXQEORFNWKHIXQGVLQWKHUHOHYDQW
$6%$ $FFRXQW WR WKH H[WHQW RI WKH $SSOLFDWLRQ $PRXQW VSHFLILHG LQ WKH $SSOLFDWLRQ )RUPV IRU ZLWKGUDZQ
UHMHFWHG RU XQVXFFHVVIXO RU SDUWLDOO\ VXFFHVVIXO $6%$ $SSOLFDWLRQV ZLWKLQ WZHOYH :RUNLQJ 'D\V RI WKH
,VVXH&ORVLQJ'DWH
2XU&RPSDQ\DQGWKH5HJLVWUDUVKDOOFUHGLWWKHDOORWWHG1&'VWRWKHUHVSHFWLYHEHQHILFLDU\DFFRXQWVGLVSDWFKWKH
/HWWHUV RI $OORWPHQW RU OHWWHUV RI UHJUHW 5HIXQG 2UGHUV E\ UHJLVWHUHG SRVWVSHHG SRVWRUGLQDU\ SRVW DW WKH
$SSOLFDQW¶VVROHULVNZLWKLQ:RUNLQJ'D\VIURPWKH,VVXH&ORVXUH'DWH:HPD\HQWHULQWRDQDUUDQJHPHQW
ZLWK RQH RU PRUH EDQNV LQ RQH RU PRUH FLWLHV IRU UHIXQG WR WKH DFFRXQW RI WKH DSSOLFDQWV WKURXJK 'LUHFW
&UHGLW57*61()7
)XUWKHU
D $OORWPHQW RI 1&'V LQ WKH ,VVXH VKDOO EH PDGH ZLWKLQ D WLPH SHULRG RI :RUNLQJ 'D\V IURP WKH ,VVXH
&ORVXUH'DWH
E &UHGLWWRGHPDWHULDOLVHGDFFRXQWVZLOOEHJLYHQZLWKLQWZR:RUNLQJ'D\VIURPWKH'DWHRI$OORWPHQW
F ,QWHUHVWDW VXFKUDWHVDVPD\EHSUHVFULEHGE\DSSURSULDWHUHJXODWRU\DXWKRULWLHVXQGHUDSSOLFDEOHODZVDQG
UHJXODWLRQZLOOEHSDLGLIWKH$OORWPHQWKDVQRWEHHQPDGHDQGRUWKHUHIXQGRUGHUVKDYHQRWEHHQGLVSDWFKHG
WRWKHDSSOLFDQWVZLWKLQ:RUNLQJ'D\VIURPWKH,VVXH&ORVXUH'DWHIRUWKHGHOD\EH\RQG:RUNLQJ
'D\VDQG
G 2XU&RPSDQ\ZLOOSURYLGHDGHTXDWHIXQGVWRWKH5HJLVWUDUIRUWKLVSXUSRVH
5HWHQWLRQRIRYHUVXEVFULSWLRQ
2XU &RPSDQ\ LV PDNLQJ D SXEOLF LVVXH RI WKH 1&'V DJJUHJDWLQJ XSWR ` ODNKV ZLWK DQ RSWLRQ WR
UHWDLQRYHUVXEVFULSWLRQRI1&'VXSWR` ODNKV
*URXSLQJRI$SSOLFDWLRQVDQGDOORFDWLRQUDWLR
)RUWKHSXUSRVHVRIWKH%DVLVRI$OORWPHQW
$ $SSOLFDWLRQV UHFHLYHG IURP &DWHJRU\ , $SSOLFDQWV $SSOLFDWLRQV UHFHLYHG IURP $SSOLFDQWV EHORQJLQJ WR
&DWHJRU\,VKDOOEHJURXSHGWRJHWKHU³,QVWLWXWLRQDODQG1RQ,QVWLWXWLRQDO,QYHVWRU3RUWLRQ´
% $SSOLFDWLRQV UHFHLYHG IURP &DWHJRU\ ,, $SSOLFDQWV $SSOLFDWLRQV UHFHLYHG IURP $SSOLFDQWV EHORQJLQJ WR
&DWHJRU\,,VKDOOEHJURXSHGWRJHWKHU³+LJK1HW:RUWK,QGLYLGXDO3RUWLRQ´DQG
& $SSOLFDWLRQV UHFHLYHG IURP &DWHJRU\ ,,, $SSOLFDQWV $SSOLFDWLRQV UHFHLYHG IURP $SSOLFDQWV EHORQJLQJ WR
&DWHJRU\,,,VKDOOEHJURXSHGWRJHWKHU³5HWDLO,QGLYLGXDO,QYHVWRU3RUWLRQ´
)RU UHPRYDO RI GRXEW WKH WHUPV ³,QVWLWXWLRQDO DQG 1RQ ,QVWLWXWLRQDO ,QYHVWRU 3RUWLRQ´ ³+LJK 1HW :RUWK
,QGLYLGXDO 3RUWLRQ´ DQG ³5HWDLO ,QGLYLGXDO ,QYHVWRU 3RUWLRQ´ DUH LQGLYLGXDOO\ UHIHUUHG WR DV D ³3RUWLRQ´ DQG
FROOHFWLYHO\UHIHUUHGWRDV³3RUWLRQV´
)RU WKH SXUSRVHV RI GHWHUPLQLQJ WKH QXPEHU RI 1&'V DYDLODEOH IRU DOORFDWLRQ WR HDFK RI WKH DERYHPHQWLRQHG
3RUWLRQVRXU&RPSDQ\VKDOOKDYHWKHGLVFUHWLRQRIGHWHUPLQLQJWKHQXPEHURI1&'VWREHDOORWWHGRYHUDQGDERYH
WKH%DVH,VVXH6L]HLQFDVHRXU&RPSDQ\RSWVWRUHWDLQDQ\RYHUVXEVFULSWLRQLQWKH,VVXHXSWR` ODNKV7KH
DJJUHJDWHYDOXHRI1&'VGHFLGHGWREHDOORWWHGRYHUDQGDERYHWKH%DVH,VVXH6L]HLQFDVHRXU&RPSDQ\RSWVWR
UHWDLQDQ\RYHUVXEVFULSWLRQLQWKH,VVXHDQGRUWKHDJJUHJDWH YDOXHRI 1&'V XSWR WKH%DVH,VVXH 6L]H VKDOOEH
FROOHFWLYHO\WHUPHGDVWKH³2YHUDOO,VVXH6L]H´
$OORFDWLRQUDWLR
5HVHUYDWLRQVVKDOOEHPDGHIRUHDFKRIWKH3RUWLRQVLQWKHEHORZPHQWLRQHGEDVLV
,QVWLWXWLRQDODQG
1RQ,QVWLWXWLRQDO,QYHVWRU3RUWLRQ
RIWKH2YHUDOO,VVXH6L]H
+LJK1HW:RUWK,QGLYLGXDO3RUWLRQ
RIWKH2YHUDOO,VVXH6L]H
5HWDLO,QGLYLGXDO,QYHVWRU
3RUWLRQ
RIWKH2YHUDOO,VVXH6L]H
%DVLVRI$OORWPHQW
D $OORWPHQWVLQWKHILUVWLQVWDQFH
L $SSOLFDQWV EHORQJLQJ WR &DWHJRU\ , LQ WKH ILUVW LQVWDQFH ZLOO EH DOORFDWHG 1&'V XSWR RI WKH
2YHUDOO ,VVXH 6L]H RQ ILUVW FRPH ILUVW VHUYH EDVLV GHWHUPLQHG RQ WKH EDVLV RI GDWH RI XSORDG RI WKH
$SSOLFDWLRQVRQWKHHOHFWURQLF$SSOLFDWLRQSODWIRUPRIWKH%6(
LL $SSOLFDQWV EHORQJLQJ WR WKH &DWHJRU\ ,, LQ WKH ILUVW LQVWDQFH ZLOO EH DOORFDWHG 1&'V XSWR RI
2YHUDOO ,VVXH 6L]H RQ ILUVW FRPH ILUVW VHUYH EDVLV GHWHUPLQHG RQ WKH EDVLV RI GDWH RI XSORDG RI WKH
$SSOLFDWLRQVRQWKHHOHFWURQLF$SSOLFDWLRQSODWIRUPRIWKH%6(
LLL $SSOLFDQWV EHORQJLQJ WR WKH &DWHJRU\ ,,, LQ WKH ILUVW LQVWDQFH ZLOO EH DOORFDWHG 1&'V XSWR RI
2YHUDOO ,VVXH 6L]H RQ ILUVW FRPH ILUVW VHUYH EDVLV GHWHUPLQHG RQ WKH EDVLV RI GDWH RI XSORDG RI WKH
$SSOLFDWLRQVRQWKHHOHFWURQLF$SSOLFDWLRQSODWIRUPRIWKH%6(
E 8QGHUVXEVFULSWLRQ
,IWKHUHLVDQ\XQGHUVXEVFULSWLRQLQDQ\3RUWLRQSULRULW\LQ$OORWPHQWVZLOOEHJLYHQLQWKHIROORZLQJRUGHU
L &DWHJRU\,,,3RUWLRQ
LL &DWHJRU\,,3RUWLRQDQG
LLL &DWHJRU\,3RUWLRQ
F )RU DOO 3RUWLRQV DOO $SSOLFDWLRQV XSORDGHG RQ WKH VDPH GD\ RQ WKH HOHFWURQLF $SSOLFDWLRQ SODWIRUP RI WKH
%6(ZRXOGEHWUHDWHGDWSDUZLWKHDFKRWKHU
G 0LQLPXP$OORWPHQWVRIRQH1&'ZRXOGEHPDGHLQFDVHRIHDFKYDOLG$SSOLFDWLRQ
H $OORWPHQWVLQFDVHRIRYHUVXEVFULSWLRQ
,QFDVHRIDQRYHUVXEVFULSWLRQLQDQ\RIWKH3RUWLRQV$OORWPHQWVWRWKHPD[LPXPH[WHQWDVSRVVLEOHZLOOEH
PDGHRQDILUVWFRPHILUVWVHUYHEDVLVDQGWKHUHDIWHURQSURSRUWLRQDWHEDVLVLHIXOO$OORWPHQWRI1&'VWR
WKH $SSOLFDQWV RQ D ILUVW FRPH ILUVW EDVLV XS WR WKH GDWH IDOOLQJ RQH GD\ SULRU WR WKH GDWH RI
RYHUVXEVFULSWLRQ DQG SURSRUWLRQDWH DOORWPHQW RI 1&'V WR WKH $SSOLFDQWV RQ WKH GDWH RI RYHUVXEVFULSWLRQ
GHWHUPLQHGRQWKHEDVLVRIGDWHRIXSORDGRIWKH$SSOLFDWLRQVRQWKHHOHFWURQLF$SSOLFDWLRQSODWIRUPRI%6(
LQHDFK3RUWLRQ7KHPHWKRGRISURSRUWLRQDWHDOORWPHQWLVDVGHVFULEHGEHORZ
L $OORWPHQWVWR$SSOLFDQWVVKDOOEHPDGHLQSURSRUWLRQWRWKHLUUHVSHFWLYH$SSOLFDWLRQVL]HURXQGHGRIIWR
WKHQHDUHVWLQWHJHU
LL ,IWKHSURFHVVRIURXQGLQJRIIWRWKHQHDUHVWLQWHJHUUHVXOWVLQWKHDFWXDODOORFDWLRQRI1&'VEHLQJKLJKHU
WKDQWKH,VVXH6L]HQRWDOODSSOLFDQWVZLOOEHDOORWWHGWKHQXPEHURI1&'VDUULYHGDWDIWHUVXFKURXQGLQJ
RII5DWKHUHDFK$SSOLFDQWZKRVH$OORWPHQWVL]HSULRUWRURXQGLQJRIIKDGWKHKLJKHVWGHFLPDOSRLQW
ZRXOGEHJLYHQSUHIHUHQFH
LLL ,Q WKH HYHQW WKHUH LV PRUH WKDQ RQH $SSOLFDQW ZKRVH HQWLWOHPHQW UHPDLQV HTXDO DIWHU WKH PDQQHU RI
GLVWULEXWLRQUHIHUUHGWRDERYHRXU&RPSDQ\ZLOOHQVXUHWKDWWKHEDVLVRIDOORWPHQWLVILQDOLVHGE\GUDZ
RIORWVLQDIDLUDQGHTXLWDEOHPDQQHU
I $SSOLFDQWVDSSO\LQJIRUPRUHWKDQRQH6HULHVRI1&'V
,I DQ $SSOLFDQW KDV DSSOLHG IRU PRUH WKDQ RQH 6HULHV RI 1&'V DQG LQ FDVH VXFK $SSOLFDQW LV HQWLWOHG WR
DOORFDWLRQRIRQO\DSDUWRIWKHDJJUHJDWHQXPEHURI1&'VDSSOLHGIRUWKH6HULHVZLVHDOORFDWLRQRI1&'VWR
VXFK$SSOLFDQWVVKDOOEHLQSURSRUWLRQWRWKH QXPEHURI1&'V ZLWKUHVSHFWWRHDFK6HULHVDSSOLHGIRUE\
VXFK$SSOLFDQWVXEMHFWWRURXQGLQJRIIWRWKHQHDUHVWLQWHJHUDVDSSURSULDWHLQFRQVXOWDWLRQZLWKWKH/HDG
0DQDJHUDQGWKH'HVLJQDWHG6WRFN([FKDQJH
$OO GHFLVLRQV SHUWDLQLQJ WR WKH EDVLV RI DOORWPHQW RI WKH 1&'V SXUVXDQW WR WKH ,VVXH VKDOO EH WDNHQ E\ RXU
&RPSDQ\LQFRQVXOWDWLRQZLWKWKH/HDG0DQDJHUDQGWKH'HVLJQDWHG6WRFN([FKDQJHDQGLQFRPSOLDQFHZLWKWKH
DIRUHPHQWLRQHG SURYLVLRQV RI WKLV 3URVSHFWXV 2XU &RPSDQ\ ZRXOG DOORW 1&'V XQGHU 6HULHV 9, WR DOO YDOLG
$SSOLFDWLRQVZKHUHLQWKH$SSOLFDQWVKDYHQRWLQGLFDWHGWKHLUFKRLFHRI6HULHVRI1&'V
,QYHVWRU:LWKGUDZDOVDQG3UHFORVXUH
:LWKGUDZDORI$SSOLFDWLRQVGXULQJWKH,VVXH3HULRG
:LWKGUDZDORI$6%$$SSOLFDWLRQV
$6%$$SSOLFDQWVFDQZLWKGUDZWKHLU$SSOLFDWLRQVGXULQJWKH,VVXH3HULRGE\VXEPLWWLQJDUHTXHVWWRVXFKHIIHFW
WR WKH 0HPEHU RI WKH 6\QGLFDWH 7UDGLQJ 0HPEHU RU 'HVLJQDWHG %UDQFK RI DQ 6&6% DV WKH FDVH PD\ EH
WKURXJKZKRPWKH$6%$$SSOLFDWLRQKDGEHHQPDGH,QFDVHRI$6%$$SSOLFDWLRQVVXEPLWWHGWRWKH0HPEHUV
RIWKH6\QGLFDWHRU7UDGLQJ0HPEHUVDWWKH6\QGLFDWH$6%$$SSOLFDWLRQ/RFDWLRQVXSRQUHFHLSWRIWKHUHTXHVW
IRU ZLWKGUDZDO IURP WKH $6%$ $SSOLFDQW WKH UHOHYDQW 0HPEHU RI WKH 6\QGLFDWH RU 7UDGLQJ 0HPEHU DV WKH
FDVH PD\EHVKDOO XQGHUWDNH UHTXLVLWHDFWLRQV LQFOXGLQJ GHOHWLQJ GHWDLOVRIWKH ZLWKGUDZQ$6%$$SSOLFDWLRQ
)RUPIURPWKHHOHFWURQLFSODWIRUPRIWKH%6(,QFDVHRI$6%$$SSOLFDWLRQVVXEPLWWHGGLUHFWO\WRD'HVLJQDWHG
%UDQFK RI DQ 6&6% XSRQ UHFHLSW RI WKH UHTXHVW IRU ZLWKGUDZDO IURP DQ $6%$ $SSOLFDQW WKH UHOHYDQW
'HVLJQDWHG %UDQFK VKDOO XQGHUWDNH UHTXLVLWH DFWLRQV LQFOXGLQJ GHOHWLQJ GHWDLOV RI WKH ZLWKGUDZQ $6%$
$SSOLFDWLRQ)RUPIURPWKHHOHFWURQLFSODWIRUPRIWKH%6(DQGXQEORFNLQJRIWKHIXQGVLQWKH$6%$$FFRXQW
GLUHFWO\
:LWKGUDZDORIQRQ±$6%$$SSOLFDWLRQV
1RQ$6%$$SSOLFDQWVFDQZLWKGUDZWKHLU$SSOLFDWLRQVGXULQJWKH,VVXH3HULRGE\VXEPLWWLQJDUHTXHVWIRUWKH
VDPHWRWKH0HPEHURIWKH6\QGLFDWHRU7UDGLQJ0HPEHUDVWKHFDVHPD\EHWKURXJKZKRPWKH$SSOLFDWLRQ
KDG EHHQ PDGH 8SRQ UHFHLSW RI WKH UHTXHVW IRU ZLWKGUDZDO IURP WKH $SSOLFDQW WKH UHOHYDQW 0HPEHU RI WKH
6\QGLFDWHRU7UDGLQJ0HPEHUDVWKHFDVHPD\EHVKDOOXQGHUWDNHUHTXLVLWHDFWLRQVLQFOXGLQJGHOHWLQJGHWDLOVRI
WKHZLWKGUDZQ$SSOLFDWLRQ)RUPIURPWKHHOHFWURQLFSODWIRUPRIWKH%6(
:LWKGUDZDORI$SSOLFDWLRQVDIWHUWKH,VVXH3HULRG
,QFDVHDQ$SSOLFDQWZLVKHVWRZLWKGUDZDQ$SSOLFDWLRQDIWHUWKH,VVXH&ORVLQJ'DWHWKHVDPHFDQEHGRQHE\
VXEPLWWLQJDZLWKGUDZDOUHTXHVWWRWKH5HJLVWUDUWRWKH,VVXHSULRUWRWKHILQDOL]DWLRQRIWKH%DVLVRI$OORWPHQW
3UHFORVXUH2XU&RPSDQ\LQFRQVXOWDWLRQZLWKWKH/HDG0DQDJHUVUHVHUYHVWKHULJKWWRFORVHWKH,VVXHDWDQ\
WLPHSULRUWRWKH,VVXH&ORVLQJ'DWHVXEMHFWWRIXOOVXEVFULSWLRQRIWKH5HWDLO,QGLYLGXDO,QYHVWRU3RUWLRQSULRUWR
VXFKHDUO\FORVXUH2XU&RPSDQ\VKDOODOORW1&'VZLWKUHVSHFWWRWKH$SSOLFDWLRQVUHFHLYHGWLOOWKHWLPHRIVXFK
SUHFORVXUH LQ DFFRUGDQFH ZLWK WKH %DVLV RI $OORWPHQW DV GHVFULEHG KHUHLQDERYH DQG VXEMHFW WR DSSOLFDEOH
VWDWXWRU\DQGRUUHJXODWRU\UHTXLUHPHQWV
8WLOLVDWLRQRI$SSOLFDWLRQ$PRXQWV
7KHVXPUHFHLYHGLQUHVSHFWRIWKH,VVXHZLOOEHNHSWLQVHSDUDWHEDQNDFFRXQWVDQGZHZLOOKDYHDFFHVVWRVXFK
IXQGVDVSHUDSSOLFDEOHSURYLVLRQVRIODZVUHJXODWLRQVDQGDSSURYDOV
8WLOLVDWLRQRIWKHSURFHHGVRIWKH,VVXH
D $OOPRQLHVUHFHLYHGSXUVXDQWWRWKH,VVXHRI1&'VWRSXEOLFVKDOOEHWUDQVIHUUHGWRDVHSDUDWHEDQNDFFRXQW
RWKHUWKDQWKHEDQNDFFRXQWUHIHUUHGWRLQVHFWLRQRIWKH&RPSDQLHV$FW
E 'HWDLOVRIDOOPRQLHVXWLOLVHGRXWRI,VVXHUHIHUUHGWRLQVXELWHPDVKDOOEHGLVFORVHGXQGHUDQDSSURSULDWH
VHSDUDWHKHDGLQRXU%DODQFH6KHHWLQGLFDWLQJWKHSXUSRVHIRUZKLFKVXFKPRQLHVKDGEHHQXWLOLVHG
F 'HWDLOVRIDOOXQXWLOLVHGPRQLHVRXWRILVVXHRI 1&'VLIDQ\UHIHUUHGWRLQVXELWHPDVKDOOEHGLVFORVHG
XQGHUDQDSSURSULDWHVHSDUDWHKHDGLQRXU%DODQFH6KHHWLQGLFDWLQJWKHIRUPLQZKLFKVXFKXQXWLOLVHGPRQLHV
KDYHEHHQLQYHVWHG
G :HVKDOOXWLOL]HWKH,VVXHSURFHHGVRQO\XSRQFUHDWLRQRIVHFXULW\DVVWDWHGLQWKLV3URVSHFWXVUHFHLSWRIWKH
OLVWLQJDQGWUDGLQJDSSURYDOIURPWKH%6(
H 7KH ,VVXH SURFHHGV VKDOO QRW EH XWLOL]HG WRZDUGV IXOO RU SDUW FRQVLGHUDWLRQ IRU WKH SXUFKDVH RU DQ\ RWKHU
DFTXLVLWLRQLQWHUDOLDE\ZD\RIDOHDVHRIDQ\SURSHUW\
,PSHUVRQDWLRQ
$WWHQWLRQ RI WKH $SSOLFDQWV LV VSHFLILFDOO\ GUDZQ WR WKH SURYLVLRQV RI VXEVHFWLRQ RI VHFWLRQ RI WKH
&RPSDQLHV$FWZKLFKLVUHSURGXFHGEHORZ
³$Q\SHUVRQZKR
D PDNHVRUDEHWVPDNLQJRIDQDSSOLFDWLRQLQDILFWLWLRXVQDPHWRDFRPSDQ\IRUDFTXLULQJRUVXEVFULELQJIRU
LWVVHFXULWLHVRU
E PDNHVRUDEHWVPDNLQJRIPXOWLSOHDSSOLFDWLRQVWRDFRPSDQ\LQGLIIHUHQWQDPHVRULQGLIIHUHQWFRPELQDWLRQV
RIKLVQDPHRUVXUQDPHIRUDFTXLULQJRUVXEVFULELQJIRULWVVHFXULWLHVRU
F RWKHUZLVHLQGXFHVGLUHFWO\RULQGLUHFWO\DFRPSDQ\WRDOORWRUUHJLVWHUDQ\WUDQVIHURIVHFXULWLHVWRKLPRU
WRDQ\RWKHUSHUVRQLQDILFWLWLRXVQDPH
VKDOOEHOLDEOHIRUDFWLRQXQGHUVHFWLRQ´
/LVWLQJ
7KH 1&'V ZLOO EH OLVWHG RQ WKH %6( 2XU &RPSDQ\ KDV REWDLQHG DQ LQSULQFLSOH DSSURYDO IURP WKH %6( IRU
SHUPLVVLRQWRGHDOLQDQGIRUDQRIILFLDOTXRWDWLRQRIRXU1&'V7KHDSSOLFDWLRQIRUOLVWLQJRIWKH1&'VZLOOEH
PDGHWRWKH%6(DWDQDSSURSULDWHVWDJH,ISHUPLVVLRQVWRGHDOLQDQGIRUDQRIILFLDOTXRWDWLRQRIRXU1&'VDUH
QRW JUDQWHG E\ WKH %6( RXU &RPSDQ\ ZLOO IRUWKZLWK UHSD\ ZLWKRXW LQWHUHVW DOO PRQH\V UHFHLYHG IURP WKH
$SSOLFDQWVLQSXUVXDQFHRIWKLV3URVSHFWXV2XU&RPSDQ\VKDOOHQVXUHWKDWDOOVWHSVIRUWKHFRPSOHWLRQRIWKH
QHFHVVDU\IRUPDOLWLHV IRUOLVWLQJDQGFRPPHQFHPHQWRIWUDGLQJDW WKH%6( DUHWDNHQ ZLWKLQ:RUNLQJ'D\V
IURPWKH,VVXH&ORVXUH'DWH
)RUWKHDYRLGDQFHRIGRXEWLWLVKHUHE\FODULILHGWKDWLQWKHHYHQWRIQRQVXEVFULSWLRQWRDQ\RQHRUPRUHRIWKH
6HULHVRI1&'VVXFK1&'VZLWK6HULHVRI1&'VVKDOOQRWEHOLVWHG
8QGHUWDNLQJE\WKH,VVXHU
:HXQGHUWDNHWKDW
D WKHFRPSODLQWVUHFHLYHGLQUHVSHFWRIWKH,VVXHH[FHSWIRUFRPSODLQWVLQUHODWLRQWR$SSOLFDWLRQVVXEPLWWHGWR
7UDGLQJ0HPEHUVVKDOOEHDWWHQGHGWRE\XVH[SHGLWLRXVO\DQGVDWLVIDFWRULO\
E ZHVKDOOWDNHQHFHVVDU\VWHSVIRUWKHSXUSRVHRIJHWWLQJWKH1&'VOLVWHGZLWKLQWKHVSHFLILHGWLPH
F ZHKDYHREWDLQHGWKHFRQVHQWRIDOOSULRUFUHGLWRUVLQZKRVHIDYRXUSULRUFKDUJHVKDYHEHHQFUHDWHGRYHUWKH
WKHLPPRYDEOHSURSHUW\ZKLFKIRUPVSDUWRIWKH6HFXULW\IRUWKH1&'V
G WKH IXQGV UHTXLUHG IRU GLVSDWFK RI UHIXQG RUGHUV DOORWPHQW DGYLFH FHUWLILFDWHV E\ UHJLVWHUHG SRVW VKDOO EH
PDGHDYDLODEOHWRWKH5HJLVWUDUE\RXU&RPSDQ\
H QHFHVVDU\ FRRSHUDWLRQ WR WKH FUHGLW UDWLQJ DJHQFLHV VKDOO EH H[WHQGHG LQ SURYLGLQJ WUXH DQG DGHTXDWH
LQIRUPDWLRQXQWLOWKHGHEWREOLJDWLRQVLQUHVSHFWRIWKH1&'VDUHRXWVWDQGLQJ
I ZH VKDOO IRUZDUG WKH GHWDLOV RI XWLOLVDWLRQ RI WKH IXQGV UDLVHG WKURXJK WKH 1&'V GXO\ FHUWLILHG E\ RXU
VWDWXWRU\DXGLWRUVWRWKH'HEHQWXUH7UXVWHHDWWKHHQGRIHDFKKDOI\HDU
J ZHVKDOOGLVFORVHWKHFRPSOHWHQDPHDQGDGGUHVVRIWKH'HEHQWXUH7UXVWHHLQRXUDQQXDOUHSRUW
K ZHVKDOOSURYLGHDFRPSOLDQFHFHUWLILFDWHWRWKH7UXVWHHRQDQDQQXDOEDVLVLQUHVSHFWRIFRPSOLDQFHZLWK
WKHWHUPVDQGFRQGLWLRQVRILVVXHRI1&'VDVFRQWDLQHGLQWKLV3URVSHFWXVDQG
L ZH VKDOO PDNH QHFHVVDU\GLVFORVXUHVUHSRUWLQJ XQGHUDQ\ RWKHUOHJDORUUHJXODWRU\UHTXLUHPHQWDV PD\EH
UHTXLUHGE\RXU&RPSDQ\IURPWLPHWRWLPH
0$,13529,6,2162)$57,&/(62)$662&,$7,212)7+(&203$1<
3XUVXDQWWR6FKHGXOH,,RIWKH&RPSDQLHV$FWDQGWKH6(%,'HEW5HJXODWLRQVWKHPDLQSURYLVLRQVRIWKH
$UWLFOHV RI $VVRFLDWLRQ UHODWLQJ WR YRWLQJ ULJKWV GLYLGHQG OLHQ IRUIHLWXUH UHVWULFWLRQV RQ WUDQVIHU DQG
WUDQVPLVVLRQRIHTXLW\VKDUHVRUGHEHQWXUHVDQGRUWKHLUFRQVROLGDWLRQVSOLWWLQJDUHDVGHWDLOHGEHORZ3OHDVHQRWH
WKDW HDFK SURYLVLRQ KHUHLQ EHORZ LV QXPEHUHG DV SHU WKH FRUUHVSRQGLQJ DUWLFOH QXPEHU LQ WKH $UWLFOHV RI
$VVRFLDWLRQDQGGHILQHGWHUPVKHUHLQKDYHWKHPHDQLQJJLYHQWRWKHPLQWKH$UWLFOHVRI$VVRFLDWLRQ
$UWLFOH
&DSLWDOUHODWHG
LL
'HVFULSWLRQRISURYLVLRQ
'HEHQWXUH GHEHQWXUH VWRFN ORDQ ORDQ VWRFN ERQGV RU RWKHU VHFXULWLHV FRQIHUULQJ WKH ULJKW WR
DOORWPHQWRUFRQYHUVLRQLQWR(TXLW\6KDUHVRUWKHRSWLRQRUULJKWWRFDOOIRUDOORWPHQWRIVKDUHVVKDOO
QRWEHLVVXHGH[FHSWZLWKWKHVDQFWLRQRIWKH&RPSDQ\LQD*HQHUDO0HHWLQJ
,QWKHHYHQWWKDWVKDUHGHEHQWXUHFHUWLILFDWHVDUHLVVXHGIRUHLWKHUPRUHRUOHVVWKDQPDUNHWDEOHORWV
VXEGLYLVLRQRUFRQVROLGDWLRQLQWRPDUNHWDEOHORWVZLOOEHGRQHE\WKH&RPSDQ\DWQRFKDUJH
7KH &RPSDQ\ VKDOO ZLWKLQ WKUHH PRQWKV DIWHU DOORWPHQW RU ZLWKLQ GD\V DIWHU WKH DSSOLFDWLRQ IRU
UHJLVWUDWLRQRIWKHWUDQVIHURI DQ\VKDUHVRUGHEHQWXUHVLVFRPSOHWHGDQGKDYHUHDG\ IRUGHOLYHUWKH
FHUWLILFDWHVRIDOOWKHVKDUHVDQGGHEHQWXUHVVRDOORWWHGRUWUDQVIHUUHGXQOHVVWKHFRQGLWLRQVRILVVXHRI
WKHVDLGVKDUHVRWKHUZLVHSURYLGH
,IDFHUWLILFDWHLVZRUQRXWGHIDFHGRULIWKHUHLVQRIXUWKHUVSDFHRQWKHEDFNRIVXFKFHUWLILFDWHIRU
HQGRUVHPHQWRIWUDQVIHULWVKDOOLIUHTXLUHGEHUHSODFHGE\DQHZFHUWLILFDWHIUHHRIFKDUJHSURYLGHG
KRZHYHUWKDWVXFKQHZFHUWLILFDWHVVKDOOQRWEHLVVXHGH[FHSWXSRQGHOLYHU\RIWKHVDLGZRUQRXWRU
GHIDFHGRUXVHGXSFHUWLILFDWHIRUWKHSXUSRVHRIFDQFHOODWLRQ
,IDFHUWLILFDWHLVORVWRUGHVWUR\HGWKH&RPSDQ\PD\XSRQVXFKHYLGHQFHDQGSURRIRIVXFKORVVRU
GHVWUXFWLRQDQGVXFKLQGHPQLW\DVWKH%RDUGPD\UHTXLUHDQGRQSD\PHQWRIVXFKDIHHQRWH[FHHGLQJ
RQHUXSHHLVVXHDUHQHZHGFHUWLILFDWH$Q\UHQHZHGFHUWLILFDWHVKDOOEHPDUNHGDVVXFK
1RWZLWKVWDQGLQJZKDWLVVWDWHGLQFODXVHDQGRIWKH $UWLFOHVRI $VVRFLDWLRQWKH'LUHFWRUV
VKDOOFRPSO\ZLWKVXFKUXOHVRUUHJXODWLRQVRUUHTXLUHPHQWVRIDQ\VWRFNH[FKDQJHRUWKHUXOHVPDGH
XQGHUWKH&RPSDQLHV$FWRUWKHUXOHVPDGHXQGHU6HFXULWLHV&RQWUDFWV5HJXODWLRQ$FW
RUDQ\RWKHUDFWRUUXOHVDSSOLFDEOHLQWKLVEHKDOI
3D\PHQWRIFDOOV
7KH%RDUGRI'LUHFWRUVPD\LILWWKLQNVILWUHFHLYHIURPDQ\PHPEHUZLOOLQJWRDGYDQFHWKHVDPHDOO
RUDQ\SDUWRIWKHPRQH\XQFDOOHGDQGXQSDLGXSRQDQ\VKDUHVGHEHQWXUHVKHOGE\KLPDQGXSRQDOORU
DQ\ SDUW RI WKH PRQH\V VR DGYDQFHG PD\ XQWLO WKH VDPH ZRXOG EXW IRU VXFK DGYDQFH EHFRPH
SUHVHQWO\SD\DEOHSD\LQWHUHVWDWVXFKUDWHQRWH[FHHGLQJSDRUVXFKRWKHUSHUFHQWDJHDVPD\
EH IL[HG LQ WKLV UHJDUG DV WKH PD[LPXP SHUFHQWDJH ZLWKRXW VDQFWLRQ RI WKH &RPSDQ\ LQ D *HQHUDO
0HHWLQJ DV PD\ EH DJUHHG XSRQ EHWZHHQ WKH PHPEHU SD\LQJ WKH VXP LQ DGYDQFH DQG WKH %RDUGRI
'LUHFWRUV SURYLGHG WKDW WKH DPRXQWV RI DGYDQFH FDOOV VR UHFHLYHG VKDOO QRW EH HQWLWOHG WR UDQN IRU
GLYLGHQGRUSDUWLFLSDWHLQWKHSURILWVRIWKH&RPSDQ\
1RPLQDWLRQE\VKDUHKROGHUGHEHQWXUHKROGHUGHSRVLWRU
(YHU\ VKDUHKROGHU RU GHEHQWXUH KROGHU RU GHSRVLWRU RI WKH &RPSDQ\ PD\ DW DQ\ WLPH QRPLQDWH D
SHUVRQ WR ZKRP KLV VKDUHV RU GHEHQWXUHV RU GHSRVLWV VKDOO YHVW LQ WKH HYHQW RI KLV GHDWK LQ VXFK
PDQQHUDVPD\EHSUHVFULEHGXQGHUWKH&RPSDQLHV$FW
:KHUHWKHVKDUHVRUGHEHQWXUHVRUGHSRVLWVRIWKH&RPSDQ\DUHKHOGE\PRUHWKDQRQHSHUVRQMRLQWO\
MRLQWKROGHUV PD\ WRJHWKHU QRPLQDWH D SHUVRQ WR ZKRP DOO WKH ULJKWV LQ WKH VKDUHV RU GHEHQWXUHV RU
GHSRVLWVDVWKHFDVHPD\EHVKDOOYHVWLQWKHHYHQWRIGHDWKRIDOOWKHMRLQWKROGHUVLQVXFKPDQQHUDV
PD\EHSUHVFULEHGXQGHUWKH&RPSDQLHV$FW
1RWZLWKVWDQGLQJDQ\WKLQJFRQWDLQHGLQDQ\RWKHUODZIRUWKHWLPHEHLQJLQIRUFHRULQDQ\GLVSRVLWLRQ
ZKHWKHU WHVWDPHQWDU\ RU RWKHUZLVH ZKHUH D QRPLQDWLRQ PDGH LQ WKH PDQQHU DIRUHVDLG SXUSRUWV WR
FRQIHURQDQ\SHUVRQWKHULJKWWRYHVWWKHVKDUHVRUGHEHQWXUHVRUGHSRVLWVWKHQRPLQHHVKDOORQWKH
GHDWKRIWKHVKDUHKROGHURUGHEHQWXUHKROGHURUGHSRVLWRURUDVWKHFDVH PD\EHRQWKHGHDWKRIWKH
MRLQWKROGHUVEHFRPHHQWLWOHGWRDOOWKHULJKWVLQVXFKVKDUHVRUGHEHQWXUHVRUGHSRVLWVRUDVWKHFDVH
PD\EHDOOWKHMRLQWKROGHUVLQUHODWLRQWRVXFKVKDUHVRUGHEHQWXUHVRUGHSRVLWVWRWKHH[FOXVLRQRI
DOO RWKHU SHUVRQV XQOHVV WKH QRPLQDWLRQ LV YDULHG RU FDQFHOOHG LQ WKH PDQQHU DV PD\ EH SUHVFULEHG
XQGHUWKH&RPSDQLHV$FW
:KHUHWKHQRPLQHHLVDPLQRULWVKDOOEHODZIXOIRUWKHKROGHURIWKHVKDUHVRUGHEHQWXUHVRUGHSRVLWV
WR PDNH WKH QRPLQDWLRQ WR DSSRLQW DQ\ SHUVRQ WR EHFRPH HQWLWOHG WR VKDUHV LQ RU GHEHQWXUHV RI RU
GHSRVLWVRIWKH&RPSDQ\LQWKHPDQQHUSUHVFULEHGXQGHUWKH$FWLQWKHHYHQWRIKLVGHDWKGXULQJWKH
PLQRULW\
$ QRPLQHH XSRQ SURGXFWLRQ RI VXFK HYLGHQFH DV PD\ EH UHTXLUHG E\ WKH %RDUG DQG VXEMHFW DV
KHUHLQDIWHUSURYLGHGHOHFWHLWKHU
UHJLVWHUKLPVHOIDVKROGHURIWKHVKDUHRUGHEHQWXUHRUGHSRVLWDVWKHFDVHPD\EHRU
L
LL
WR PDNH VXFK WUDQVIHU RI WKH VKDUH RU GHEHQWXUH RU GHSRVLW DV WKH GHFHDVHG VKDUHKROGHU RU
GHEHQWXUHKROGHURUGHSRVLWKROGHUDVWKHFDVHPD\EHFRXOGKDYHPDGH
$UWLFOH
'HVFULSWLRQRISURYLVLRQ
,IWKHQRPLQHHHOHFWVWREHUHJLVWHUHGDVKROGHURIWKHVKDUHRUGHEHQWXUHRUGHSRVLWKLPVHOIDVWKHFDVH
PD\EHKHVKDOOGHOLYHURUVHQGWRWKH&RPSDQ\DQRWLFHLQZULWLQJVLJQHGE\KLPVWDWLQJWKDWKHVR
HOHFWVDQGVXFKQRWLFHVKDOOEHDFFRPSDQLHGZLWKWKHGHDWKFHUWLILFDWHRIWKHGHFHDVHGVKDUHKROGHURU
GHEHQWXUHKROGHURUGHSRVLWKROGHUDVWKHFDVHPD\EH
$ QRPLQHH VKDOO EH HQWLWOHG WR WKH VKDUH GLYLGHQG LQWHUHVW RQ GHEHQWXUHV GHSRVLWV DQG RWKHU
DGYDQWDJHVWRZKLFKKHZRXOGEHHQWLWOHGLIKHZHUHWKHUHJLVWHUHGKROGHURIWKHVKDUHRUGHEHQWXUHRU
GHSRVLW
3URYLGHG WKDW KH VKDOO QRW EHIRUH EHLQJ UHJLVWHUHG DV D PHPEHU EH HQWLWOHG WR H[HUFLVH DQ\ ULJKW
FRQIHUUHGE\PHPEHUVKLSLQUHODWLRQWRPHHWLQJRIWKH&RPSDQ\
3URYLGHGIXUWKHUWKDWWKH%RDUGRI'LUHFWRUVPD\DWDQ\WLPHJLYHQRWLFHUHTXLULQJDQ\VXFKSHUVRQWR
HOHFWHLWKHUWREHUHJLVWHUHGKLPVHOIRUWRWUDQVIHUWKHVKDUHRUGHEHQWXUHRUGHSRVLWDQGLIWKHQRWLFHLV
QRWFRPSOLHGZLWKZLWKLQQLQHW\GD\VWKH%RDUGRI'LUHFWRUVPD\KHUHDIWHUZLWKKROGSD\PHQWRIDOO
GLYLGHQGVLQWHUHVWERQXVHVRURWKHUPRQH\VSD\DEOHLQUHVSHFWRIWKHVKDUHRUGHEHQWXUHRUGHSRVLW
XQWLOWKHUHTXLUHPHQWVRIWKHQRWLFHKDYHEHHQFRPSOLHGZLWK
L
(LWKHUWKH&RPSDQ\RUWKHLQYHVWRUPD\H[HUFLVHDQRSWLRQWRLVVXHGHDOLQKROGWKHVHFXULWLHV
LQFOXGLQJVKDUHVZLWKD'HSRVLWRU\LQHOHFWURQLFIRUPDQGWKHFHUWLILFDWHVLQUHVSHFWWKHUHRI
VKDOOEHGHPDWHULDOLVHGLQZKLFKHYHQWWKHULJKWVDQGREOLJDWLRQVRIWKHSDUWLHVFRQFHUQHGDQG
PDWWHUVFRQQHFWHGWKHUHZLWKRULQFLGHQWDOWKHUHWRVKDOOEHJRYHUQHGE\WKHSURYLVLRQVRIWKH
'HSRVLWRULHV $FW DV DPHQGHG IURP WLPH WR WLPH RU DQ\ VWDWXWRU\ PRGLILFDWLRQ WKHUHWR RU UH
HQDFWPHQWWKHUHRI
LL
7KH &RPSDQ\ VKDOO EH HQWLWOHG WR GHPDWHULDOL]H LWV H[LVWLQJ VKDUHV GHEHQWXUHV DQG RWKHU
VHFXULWLHV UHPDWHULDOL]H LWV VKDUHV GHEHQWXUHV DQG RWKHU VHFXULWLHV KHOG LQ WKH 'HSRVLWRULHV
DQGRU RIIHU LWV IUHVK VKDUHV DQG GHEHQWXUHV DQG RWKHU VHFXULWLHV LQ D GHPDWHULDOLVHG IRUP
SXUVXDQWWRWKH'HSRVLWRULHV$FWDQGWKH5XOHVIUDPHGWKHUHXQGHULIDQ\
LLL (YHU\ SHUVRQ VXEVFULELQJ WR RU KROGLQJ VHFXULWLHV RIIHUHG E\ WKH &RPSDQ\ VKDOO KDYH WKH
RSWLRQWRUHFHLYHVHFXULW\FHUWLILFDWHVRUWRKROGWKHVHFXULWLHVZLWKD'HSRVLWRU\
LY 6XFK D SHUVRQ ZKR LV WKH EHQHILFLDO RZQHU RI WKH VHFXULWLHV FDQ DW DQ\ WLPH RSW RXW RI D
'HSRVLWRU\ LI SHUPLWWHG E\ ODZ LQ UHVSHFW RI DQ\ VHFXULW\ LQ WKH PDQQHU SURYLGHG E\ WKH
'HSRVLWRULHV$FWDQGWKH&RPSDQ\VKDOOLQWKHPDQQHUDQGZLWKLQWKHWLPHSUHVFULEHGLVVXH
WRWKHEHQHILFLDORZQHUWKHUHTXLUHGFHUWLILFDWHVRIVHFXULWLHV
Y
,I D SHUVRQ RSWV WR KROG KLV VHFXULW\ ZLWK D 'HSRVLWRU\ WKH &RPSDQ\ VKDOO LQWLPDWH VXFK
'HSRVLWRU\ WKH GHWDLOV RI DOORWPHQW RI WKH VHFXULW\ DQG RQ UHFHLSW RI WKH LQIRUPDWLRQ WKH
'HSRVLWRU\ VKDOO HQWHU LQ LWV UHFRUG WKH QDPH RI WKH DOORWWHH DV WKH EHQHILFLDO RZQHU RI WKH
VHFXULW\
YL $OOVHFXULWLHVKHOGE\D'HSRVLWRU\VKDOOEHGHPDWHULDOLVHGDQGEHLQIXQJLEOHIRUP
7UDQVIHURIVKDUHVGHEHQWXUHV
7KH&RPSDQ\VKRXOGHIIHFWWUDQVIHUWUDQVPLVVLRQVXEGLYLVLRQRUFRQVROLGDWLRQRIVKDUHVGHEHQWXUHV
ZLWKLQGD\VIURPWKHGDWHRIORGJPHQWWKHUHRI
1RWZLWKVWDQGLQJ DQ\WKLQJ FRQWDLQHG LQ WKH $UWLFOHV RI $VVRFLDWLRQ RI WKH &RPSDQ\ WKH %RDUG RI
'LUHFWRUV RI WKH &RPSDQ\ PD\ LQ LWV DEVROXWH GLVFUHWLRQ UHIXVH VSOLWWLQJ RI DQ\ VKDUH FHUWLILFDWH RU
GHEHQWXUHFHUWLILFDWHLQWRGHQRPLQDWLRQVOHVVWKDQPDUNHWDEOHORWVLHWKHPLQLPXPQXPEHURIVKDUHV
RUGHEHQWXUHVDVUHTXLUHGIRUWKHSXUSRVHRIWUDGLQJRQWKHVWRFNH[FKDQJHVRQZKLFKWKH&RPSDQ\¶V
VKDUHVDQGRUGHEHQWXUHVDUHZLOOEHOLVWHGH[FHSWZKHUHVXEGLYLVLRQLVUHTXLUHGWREHPDGHWRFRPSO\
ZLWKDVWDWXWRU\SURYLVLRQRURUGHURIDFRPSHWHQWDXWKRULW\RIODZ
)HHRQWUDQVIHU
1RIHHVKDOOEHFKDUJHGIRUUHJLVWUDWLRQRIWUDQVIHURIVKDUHVGHEHQWXUHVRUIRUHIIHFWLQJWUDQVPLVVLRQ
RUIRUUHJLVWHULQJDQ\OHWWHUVRISUREDWHOHWWHUVRIDGPLQLVWUDWLRQDQGVLPLODURWKHUGRFXPHQWV
'LUHFWRUV¶SRZHUV
7KHEXVLQHVVRIWKH&RPSDQ\VKDOOEHPDQDJHGE\WKH'LUHFWRUVZKRPD\SD\DOOH[SHQVHVLQFXUUHG
LQJHWWLQJXSDQGUHJLVWHULQJWKH&RPSDQ\DQGPD\H[HUFLVHDOOVXFKSRZHUVRIWKH&RPSDQ\DVDUH
QRWE\WKH&RPSDQLHV$FWRUDQ\VWDWXWRU\PRGLILFDWLRQWKHUHRIIRUWKHWLPHEHLQJLQIRUFHRU
E\WKH$UWLFOHVRI$VVRFLDWLRQRIWKH&RPSDQ\UHTXLUHGWREHH[HUFLVHGE\WKH&RPSDQ\LQD*HQHUDO
0HHWLQJVXEMHFWQHYHUWKHOHVVWRDQ\UHJXODWLRQVRIWKH$UWLFOHVRI$VVRFLDWLRQRIWKH&RPSDQ\WRWKH
SURYLVLRQV RI WKH &RPSDQLHV $FW DQG WR VXFK UHJXODWLRQ EHLQJ QRW LQFRQVLVWHQW ZLWK WKH
DIRUHVDLGPHHWLQJEXWQRUHJXODWLRQVPDGHE\WKH&RPSDQ\LQD*HQHUDO0HHWLQJVKDOOLQYDOLGDWHDQ\
SULRUDFWRIWKH'LUHFWRUVZKLFKZRXOGKDYHEHHQYDOLGLIWKDWUHJXODWLRQKDGQRWEHHQPDGH
,QIXUWKHUDQFHRIDQGZLWKRXWSUHMXGLFHWRWKHJHQHUDOSRZHUVFRQIHUUHGE\RULPSOLHGLQ$UWLFOH
DQG WKH RWKHU SRZHUV FRQIHUUHG E\ WKHVH DUWLFOHV DQG VXEMHFW WR WKH SURYLVLRQ RI 6HFWLRQ RI WKH
&RPSDQLHV$FWLWLVKHUHE\H[SUHVVO\GHFODUHGWKDWLWVKDOOEHODZIXOIRUWKH'LUHFWRUVWRFDUU\
$UWLFOH
%RUURZLQJSRZHUV
'HVFULSWLRQRISURYLVLRQ
RXW DOO RU DQ\ RI WKH REMHFWV VHW IRUWK LQ WKH 0HPRUDQGXP RI $VVRFLDWLRQ DQG WR GR WKH IROORZLQJ
WKLQJV
>«@
LLL $W WKHLU GLVFUHWLRQ WR SD\ IRU DQ\ SURSHUW\ ULJKWV RU SULYLOHJHV DFTXLUHG E\ RU VHUYLFHV
UHQGHUHGWRWKH&RPSDQ\HLWKHUZKROO\RUSDUWLDOO\LQFDVKRULQVKDUHVERQGVGHEHQWXUHVRU
RWKHUVHFXULWLHVRIWKH&RPSDQ\DQGDQ\VXFKVKDUHVPD\EHLVVXHGHLWKHUDVIXOO\SDLGXSRU
ZLWK VXFK DPRXQW FUHGLWHG DV SDLG XS WKHUHRQ DV PD\ EH DJUHHG XSRQ DQG DQ\ VXFK ERQGV
GHEHQWXUHV RU RWKHU VHFXULWLHV PD\ EH HLWKHU VSHFLILFDOO\ FKDUJHG XSRQ DOO RU DQ\ RI WKH
SURSHUW\RIWKHFRPSDQ\DQGLWVXQFDOOHGVKDUHVRUQRWVRFKDUJHG
LY 7R VHFXUH WKH IXOILOOPHQW RI DQ\ FRQWUDFWV RU DJUHHPHQW HQWHUHG LQWR E\ WKH &RPSDQ\ E\
PRUWJDJHRUFKDUJHRIDOORUDQ\RIWKHSURSHUWLHVRIWKH&RPSDQ\DQGLWVXQFDOOHGFDSLWDOIRU
WKHWLPHEHLQJRULQVXFKRWKHUPDQQHUDVWKH\WKLQNILW
>«@
[YL 7R ERUURZ RQ PRUWJDJH RI WKH ZKROH RU DQ\ SDUW RI WKH SURSHUW\ RI WKH &RPSDQ\ RU RQ WKH
ERQGVGHEHQWXUHVHLWKHUXQVHFXUHGRUVHFXUHGE\DFKDUJHRUPRUWJDJHRURWKHUVHFXULWLHVRI
WKH &RPSDQ\ RU RWKHUZLVH DV WKH\ PD\ GHHP H[SHGLHQW VXFK VXPV DV WKH\ PD\ WKLQN
QHFHVVDU\IRUWKHSXUSRVHRIWKH&RPSDQ\VXEMHFWWRSURYLVLRQVFRQWDLQHGLQ6HFWLRQVDQG
RIWKH&RPSDQLHV$FW
7KH %RDUG RI 'LUHFWRUV PD\ IURP WLPH WR WLPH EXW ZLWK VXFK FRQVHQW RI WKH &RPSDQ\ LQ JHQHUDO
PHHWLQJVDVPD\EHUHTXLUHGXQGHUVHFWLRQRIWKH&RPSDQLHV$FWUDLVHDQ\PRQH\RUDQ\
PRQH\VRUVXPRIPRQH\IRUWKHSXUSRVHRIWKH&RPSDQ\SURYLGHGWKDWWKHPRQH\VWREHERUURZHG
WRJHWKHU ZLWK PRQH\V DOUHDG\ ERUURZHG E\ WKH FRPSDQ\ DSDUW IURP WHPSRUDU\ ORDQV REWDLQHG IURP
WKH &RPSDQ\¶V EDQNHUV LQ WKH RUGLQDU\ FRXUVH RI EXVLQHVV VKDOO QRW ZLWKRXW WKH VDQFWLRQ RI WKH
&RPSDQ\ DW D *HQHUDO 0HHWLQJ H[FHHG WKH DJJUHJDWH RI WKH SDLGXS FDSLWDORI WKH FRPSDQ\ DQG LWV
IUHHUHVHUYHVWKDWLVWRVD\UHVHUYHVQRWVHWSDUWIRUDQ\VSHFLILFSXUSRVHDQGLQSDUWLFXODUEXWVXEMHFWWR
WKHSURYLVLRQRIVHFWLRQRIWKH&RPSDQLHV$FWWKH%RDUGPD\ IURPWLPHWRWLPHDWWKHLU
GLVFUHWLRQ PD\ UDLVH RU ERUURZ RU VHFXUH WKH SD\PHQW RI DQ\ VXFK VXP RU VXPV RI PRQH\ IRU WKH
SXUSRVHRIWKHFRPSDQ\E\WKHLVVXHRIGHEHQWXUHVWRPHPEHUVSHUSHWXDODQQXLWLHVDQGLQVHFXULW\RI
DQ\VXFKPRQH\VRERUURZHGUDLVHGRUUHFHLYHGWRPRUWJDJHSOHGJHRUFKDUJHWKHZKROHRUDQ\SDUW
RIWKHSURSHUW\DVVHWVRUUHYHQXHRIWKHFRPSDQ\SUHVHQWRUIXWXUHLQFOXGLQJLWVXQFDOOHGFDSLWDOE\
VSHFLDODVVLJQPHQWRURWKHUZLVHRUWRWUDQVIHURUFRQYH\WKHVDPHDEVROXWHO\RULQWUXVWDQGWRJLYHWKH
OHQGHUVSRZHUVRIVDOHDQGRWKHUVDVPD\EHH[SHGLHQWDQGWRSXUFKDVHUHGHHPRUSD\RIIDQ\VXFK
VHFXULWLHV
3URYLGHG WKDW WKH 'LUHFWRUV PD\ E\ D UHVROXWLRQ DW D PHHWLQJ RI WKH %RDUG GHOHJDWH WKH SRZHU WR
ERUURZPRQH\RWKHUZLVHWKDQRQGHEHQWXUHVWRDFRPPLWWHHRI'LUHFWRUVVXEMHFWWROLPLWVVSHFLILHGLQ
WKHVDLGUHVROXWLRQLQUHVSHFWRIWKHWRWDOZKLFKFDQEHVRERUURZHG
'HEHQWXUH VWRFN ORDQ ORDQ VWRFN ERQGV RU RWKHU VHFXULWLHV FRQIHUULQJ WKH ULJKW WR DOORWPHQW RU
FRQYHUVLRQLQWRVKDUHVRUWKHRSWLRQRUULJKWWRFDOOIRUDOORWPHQWRIVKDUHVVKDOOQRWEHLVVXHGH[FHSW
ZLWKWKHVDQFWLRQRIWKH&RPSDQ\LQ*HQHUDO0HHWLQJ
0$7(5,$/&2175$&76$1''2&80(176)25,163(&7,21
7KHIROORZLQJFRQWUDFWVQRWEHLQJFRQWUDFWVHQWHUHGLQWRLQWKHRUGLQDU\FRXUVHRIEXVLQHVVFDUULHGRQE\ RXU
&RPSDQ\RUHQWHUHGLQWRPRUHWKDQWZR\HDUVEHIRUHWKHGDWHRIWKLV 3URVSHFWXVZKLFKDUHRUPD\EHGHHPHG
PDWHULDOKDYHEHHQHQWHUHGRUDUHWREHHQWHUHGLQWRE\ RXU&RPSDQ\7KHVHFRQWUDFWVDQGDOVRWKHGRFXPHQWV
IRU LQVSHFWLRQ UHIHUUHG WR KHUHXQGHU PD\ EH LQVSHFWHG RQ :RUNLQJ 'D\V DW WKH 5HJLVWHUHG 2IILFH RI RXU
&RPSDQ\VLWXDWHGDW$QJDSSD1DLFNHQ6WUHHW&KHQQDL7DPLO1DGX,QGLDIURPDPDQG
QRRQRQDQ\:RUNLQJ'D\GXULQJZKLFK,VVXHLVRSHQIRUSXEOLFVXEVFULSWLRQ
0$7(5,$/&2175$&76
,QYHVWPHQWDJUHHPHQWGDWHG0D\EHWZHHQ$VLDEULGJH)XQG,//&DQGRXU&RPSDQ\
,QYHVWPHQWDJUHHPHQWGDWHG0D\EHWZHHQ%HVVHPHU9HQWXUHV3DUWQHUVDQGRXU&RPSDQ\
/LFHQVH$JUHHPHQWGDWHG$SULOEHWZHHQ6KULUDP2ZQHUVKLS7UXVWDQGRXU&RPSDQ\DQGH[WHQVLRQ
OHWWHUGDWHG$SULO
$JUHHPHQWGDWHG0DUFKEHWZHHQRXU&RPSDQ\DQGWKH/HDG0DQDJHUV
0HPRUDQGXPRI8QGHUVWDQGLQJGDWHG0DUFKEHWZHHQRXU&RPSDQ\DQGWKH5HJLVWUDUWRWKH,VVXH
'HEHQWXUH7UXVWHH$JUHHPHQWGDWHG2FWREHUEHWZHHQRXU&RPSDQ\DQGWKH'HEHQWXUH7UXVWHH
(VFURZ$JUHHPHQWGDWHG0DUFKEHWZHHQRXU&RPSDQ\WKH5HJLVWUDUWKH(VFURZ&ROOHFWLRQ%DQNV
DQGWKH/HDG0DQDJHUVDQG
7ULSDUWLWH$JUHHPHQWVGDWHG1RYHPEHUDQG1RYHPEHUZLWK&'6/DQG16'/UHVSHFWLYHO\
0HPRUDQGXPRI8QGHUVWDQGLQJGDWHG0DUFKEHWZHHQRXU&RPSDQ\WKH/HDG0DQDJHUVDQGWKH
/HDG%URNHUV
0$7(5,$/'2&80(176
0HPRUDQGXPDQG$UWLFOHVRI$VVRFLDWLRQRIRXU&RPSDQ\DVDPHQGHGWRGDWH
&RS\RIVKDUHKROGHUVUHVROXWLRQGDWHG-XO\RQERUURZLQJOLPLW
&RS\RIWKH%RDUGUHVROXWLRQGDWHG-XO\DSSURYLQJWKH,VVXH
&RS\RIWKHUHVROXWLRQSDVVHGE\WKH 6HFXULWLHV0DQDJHPHQW &RPPLWWHH DWLWV PHHWLQJKHOGRQ 0DUFK
DSSURYLQJWKH,VVXH
&RQVHQWVRIHDFKRIWKH'LUHFWRUVWKH&RPSOLDQFH2IILFHU/HDG0DQDJHUVOHJDOFRXQVHOWRWKH&RPSDQ\
DVWR,QGLDQODZ5HJLVWUDUWRWKH,VVXH %DQNHUVWRRXU&RPSDQ\%DQNHUVWRWKH,VVXH/HDG%URNHUV WKH
'HEHQWXUH7UXVWHHIRUWKH1&'VDQGWKH&UHGLW5DWLQJ$JHQFLHVWRLQFOXGHWKHLUQDPHVLQWKLV3URVSHFWXVLQ
WKHLUUHVSHFWLYHFDSDFLWLHV
&RQVHQWRIWKH$XGLWRUVIRULQFOXVLRQRIWKHLUQDPHDQGWKHUHSRUWRQWKH$FFRXQWVLQWKHIRUPDQGFRQWH[W
LQZKLFKWKH\DSSHDULQWKLV3URVSHFWXVDQGWKHLUVWDWHPHQWRQWD[EHQHILWVPHQWLRQHGKHUHLQ
$XGLWRU¶V 5HSRUWGDWHG 2FWREHU RQ WKHUHIRUPDWWHG DXGLWHG ILQDQFLDO LQIRUPDWLRQ SUHSDUHG XQGHU
,QGLDQ*$$3IRUWKHVL[PRQWKVHQGHG6HSWHPEHUDQGWKHILQDQFLDO\HDUVHQGHG0DUFK
DQG
6WDWHPHQWRIWD[EHQHILWVGDWHG0DUFKLVVXHGE\RXU6WDWXWRU\$XGLWRUV
$QQXDO5HSRUWRIRXU&RPSDQ\IRUWKHODVWILYH)LVFDOV
/HWWHUIURPWKH6(%,GDWHG2FWREHUDQGQR,0''2)%09$2:RQDOORWPHQWRI
1&'VLQSK\VLFDOIRUP
,QSULQFLSOHOLVWLQJDSSURYDOIURPWKH%6(E\LWVOHWWHUGDWHG0DUFK
6FKHPH RI DUUDQJHPHQW EHWZHHQ 6KULUDP 5HWDLO +ROGLQJV 3ULYDWH /LPLWHG 6KULUDP (QWHUSULVH +ROGLQJV
3ULYDWH/LPLWHGRXU&RPSDQ\DQG
'XH'LOLJHQFH&HUWLILFDWHGDWHG0DUFKILOHGE\WKH/HDG0DQDJHUVZLWK6(%,
$Q\RIWKHFRQWUDFWVRUGRFXPHQWVPHQWLRQHGDERYHPD\EHDPHQGHGRU PRGLILHGDWDQ\WLPHZLWKRXW
UHIHUHQFHWRWKH'HEHQWXUH+ROGHUVLQWKHLQWHUHVWRIRXU&RPSDQ\LQFRPSOLDQFHZLWKDSSOLFDEOHODZV
'(&/$5$7,21
:H WKH XQGHUVLJQHG KHUHE\ GHFODUH WKDW DOO WKH UHOHYDQW SURYLVLRQV RI WKH &RPSDQLHV $FW DQG WKH
&RPSDQLHV $FW WR WKH H[WHQW DSSOLFDEOH WKH JXLGHOLQHV LVVXHG E\ WKH *RYHUQPHQW RI ,QGLD DQG WKH
UHJXODWLRQVDQGJXLGHOLQHVLVVXHGE\WKH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLDHVWDEOLVKHGXQGHU6HFWLRQRI
WKH 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD $FW DV WKH FDVH PD\ EH LQFOXGLQJ WKH 6HFXULWLHV DQG
([FKDQJH%RDUGRI,QGLD,VVXHDQG/LVWLQJRI'HEW6HFXULWLHV5HJXODWLRQVKDYHEHHQFRPSOLHGZLWKDQG
QR VWDWHPHQW PDGH LQ WKLV 3URVSHFWXV LV FRQWUDU\ WR WKH SURYLVLRQV RI WKH &RPSDQLHV $FW DQG WKH
&RPSDQLHV$FWWRWKHH[WHQWDSSOLFDEOHWKH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD$FWRUUXOHV
DQGUHJXODWLRQVPDGHWKHUHXQGHUDVWKHFDVHPD\EH
6LJQHGE\WKH%RDUGRI'LUHFWRUVRIWKH&RPSDQ\
$UXQ'XJJDO
&KDLUPDQ
5'XUXYDVDQ
0DQDJLQJ'LUHFWRU
*66XQGDUDUDMDQ
0DQDJLQJ'LUHFWRU
5DQYLU'HZDQ
'LUHFWRU
3XQHHW%KDWLD
'LUHFWRU
6.ULVKQDPXUWK\
'LUHFWRU
9LSHQ.DSXU
'LUHFWRU
90XUDOL
'LUHFWRU
/DNVKPL3UDQHVK
'LUHFWRU
6XQLO9DUPD
'LUHFWRU
3UDQDE3UDNDVK3DWWDQD\DN
'LUHFWRU
3ODFH&KHQQDL
'DWH0DUFK
$11(;85($),1$1&,$/67$7(0(176
6QR
3DUWLFXODUV
([DPLQDWLRQ UHSRUW RQ RXU UHIRUPDWWHG XQFRQVROLGDWHG ILQDQFLDO VWDWHPHQWV DV DW 0DUFK 5HIRUPDWWHGDXGLWHGXQFRQVROLGDWHGILQDQFLDOVWDWHPHQWVDVDW0DUFK
$XGLWRU¶VUHSRUWRQRXUUHIRUPDWWHGXQFRQVROLGDWHGILQDQFLDOVWDWHPHQWVDVDW6HSWHPEHU
5HIRUPDWWHGDXGLWHGXQFRQVROLGDWHGILQDQFLDOVWDWHPHQWVDVDW6HSWHPEHU
([DPLQDWLRQ UHSRUW RQ RXU UHIRUPDWWHG FRQVROLGDWHG ILQDQFLDO VWDWHPHQWV DV DW 0DUFK 5HIRUPDWWHGDXGLWHGFRQVROLGDWHGILQDQFLDOVWDWHPHQWVDVDW0DUFK
$XGLWRU¶V UHSRUW RQ RXU UHIRUPDWWHG FRQVROLGDWHG ILQDQFLDO VWDWHPHQWV DV DW 6HSWHPEHU 5HIRUPDWWHGDXGLWHGFRQVROLGDWHGILQDQFLDOVWDWHPHQWVDVDW6HSWHPEHU
3DJH
)
)
)
)
)
)
)
)
PIJUSH GUPTA & CO
CHARTERED ACCOUNTANTS
P-199, C.I.T.ROAD, SCHEME IV-M, KOLKATA ±700 010
yD/Ed/KEZWKZd
dŽ͕
dŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐ͕
^ŚƌŝƌĂŵŝƚLJhŶŝŽŶ&ŝŶĂŶĐĞ>ŝŵŝƚĞĚ͕
ϭϮϯ͕ŶŐĂƉƉĂEĂŝĐŬĞŶ^ƚƌĞĞƚ͕
ŚĞŶŶĂŝͲϲϬϬϬϬϭ
ĞĂƌ^ŝƌƐ͕
ϭ͘
tĞ͕ WŝũƵƐŚ 'ƵƉƚĂ Θ Ž͕ ŚĂƌƚĞƌĞĚ ĐĐŽƵŶƚĂŶƚƐ͕ ŚĂǀĞ ĞdžĂŵŝŶĞĚ ƚŚĞ ZĞĨŽƌŵĂƚƚĞĚ hŶĐŽŶƐŽůŝĚĂƚĞĚ
&ŝŶĂŶĐŝĂů ^ƚĂƚĞŵĞŶƚƐ ;ƚŚĞ ΗZĞĨŽƌŵĂƚƚĞĚ ^ƚĂƚĞŵĞŶƚƐΗͿ ŽĨ ^ŚƌŝƌĂŵ ŝƚLJ hŶŝŽŶ &ŝŶĂŶĐĞ >ŝŵŝƚĞĚ ;ƚŚĞ
ΗŽŵƉĂŶLJΗͿĂƐĂƚĂŶĚĨŽƌƚŚĞLJĞĂƌƐĞŶĚĞĚDĂƌĐŚϯϭ͕ϮϬϭϯ͕ϮϬϭϮ͕ϮϬϭϭ͕ϮϬϭϬ͕ĂŶĚϮϬϬϵ ĂŶŶĞdžĞĚ ƚŽ
ƚŚŝƐƌĞƉŽƌƚĨŽƌƚŚĞƉƵƌƉŽƐĞŽĨŝŶĐůƵƐŝŽŶŝŶƚŚĞKĨĨĞƌŽĐƵŵĞŶƚ;͞K͟ͿƚŽďĞĨŝůĞĚďLJƚŚĞŽŵƉĂŶLJŝŶ
ĐŽŶŶĞĐƚŝŽŶ ǁŝƚŚ ƚŚĞ ŽĨĨĞƌ ŽĨ EŽŶͲŽŶǀĞƌƚŝďůĞ ĞďĞŶƚƵƌĞƐ ŽĨ ƚŚĞ ŽŵƉĂŶLJ ͘dŚĞ ZĞĨŽƌŵĂƚƚĞĚ
^ƚĂƚĞŵĞŶƚƐ ĂƌĞ ĂƉƉƌŽǀĞĚ ďLJ ͕ Ğďƚ /ƐƐƵĂŶĐĞ ŽŵŵŝƚƚĞĞ ͕ƚŚĞ ĞŵƉŽǁĞƌĞĚ ĐŽŵŵŝƚƚĞĞ ŽĨ ŽĂƌĚ ŽĨ
ŝƌĞĐƚŽƌƐ ŽĨ ƚŚĞ ŽŵƉĂŶLJ ;ƚŚĞ ŽŵŵŝƚƚĞĞͿ ĂŶĚ ƐĂŵĞ ZĞĨŽƌŵĂƚƚĞĚ ^ƚĂƚĞŵĞŶƚƐ ĂƌĞ ƉƌĞƉĂƌĞĚ ďLJ ƚŚĞ
ŽŵƉĂŶLJŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐŽĨ͗
Ă͘
ƉĂƌĂŐƌĂƉŚ;ϭͿŽĨWĂƌƚ//ŽĨ^ĐŚĞĚƵůĞ//ƚŽƚŚĞŽŵƉĂŶŝĞƐĐƚ͕ϭϵϱϲ;ΖƚŚĞĐƚΖͿĂŶĚ
ď͘
ƚŚĞ^ĞĐƵƌŝƚŝĞƐĂŶĚdžĐŚĂŶŐĞŽĂƌĚŽĨ/ŶĚŝĂ;/ƐƐƵĞĂŶĚ>ŝƐƚŝŶŐŽĨĞďƚ^ĞĐƵƌŝƚŝĞƐͿZĞŐƵůĂƚŝŽŶƐ͕
ϮϬϬϴ;ΖƚŚĞZĞŐƵůĂƚŝŽŶƐΖͿŝƐƐƵĞĚďLJƚŚĞ^ĞĐƵƌŝƚŝĞƐdžĐŚĂŶŐĞŽĂƌĚŽĨ/ŶĚŝĂ;Ζ^/ΖͿ͕ĂƐĂŵĞŶĚĞĚ
ĨƌŽŵƚŝŵĞƚŽƚŝŵĞŝŶƉƵƌƐƵĂŶĐĞŽĨ^ĞĐƚŝŽŶϭϭŽĨƚŚĞ^ĞĐƵƌŝƚŝĞƐdžĐŚĂŶŐĞŽĂƌĚŽĨ/ŶĚŝĂĐƚ͕
ϭϵϵϮ;ƚŚĞΗ^/ĐƚΗͿ͘
WŝũƵƐŚ 'ƵƉƚĂ Θ Ž͕ ŚĂƌƚĞƌĞĚ ĐĐŽƵŶƚĂŶƚƐ ĂƌĞ ƌĞĨĞƌƌĞĚ ƚŽ ĂƐ ƚŚĞ ΗƵĚŝƚŽƌƐΗ ĂŶĚ ƚŚĞ ƌĞĨĞƌĞŶĐĞƐ ƚŽ
ΗǁĞΗ͕ΗƵƐ͕͟ΗŽƵƌΗ͕ŝŶƚŚŝƐůĞƚƚĞƌ͕ƐŚĂůůďĞĐŽŶƐƚƌƵĞĚĂĐĐŽƌĚŝŶŐůLJ͘
dŚĞƉƌĞƉĂƌĂƚŝŽŶŽĨƐƵĐŚZĞĨŽƌŵĂƚƚĞĚ^ƚĂƚĞŵĞŶƚƐŝƐƚŚĞƌĞƐƉŽŶƐŝďŝůŝƚLJŽĨƚŚĞŽŵƉĂŶLJΖƐŵĂŶĂŐĞŵĞŶƚ͘
KƵƌƌĞƐƉŽŶƐŝďŝůŝƚLJŝƐƚŽƌĞƉŽƌƚŽŶƐƵĐŚƐƚĂƚĞŵĞŶƚƐďĂƐĞĚŽŶŽƵƌƉƌŽĐĞĚƵƌĞƐ͘
Ϯ͘
tĞ ƌĞƉŽƌƚ ƚŚĂƚ ƚŚĞ ZĞĨŽƌŵĂƚƚĞĚ ^ƚĂƚĞŵĞŶƚƐ ŚĂǀĞ ďĞĞŶ ƉƌĞƉĂƌĞĚ ďLJ ƚŚĞ DĂŶĂŐĞŵĞŶƚ ĨƌŽŵ ƚŚĞ
ĂƵĚŝƚĞĚĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŽĨƚŚĞŽŵƉĂŶLJĨŽƌƚŚĞLJĞĂƌƐĞŶĚĞĚDĂƌĐŚϯϭ͕ϮϬϭϯ͖DĂƌĐŚϯϭ͕ϮϬϭϮ͖
DĂƌĐŚϯϭϮϬϭϭ͖DĂƌĐŚϯϭ͕ϮϬϭϬ͖ĂŶĚDĂƌĐŚϯϭ͕ϮϬϬϵĂŶĚĨƌŽŵƚŚĞŬƐŽĨĂĐĐŽƵŶƚƵŶĚĞƌůLJŝŶŐƐƵĐŚ
ĂƵĚŝƚĞĚ ĨŝŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ ŽĨ ƚŚĞ ŽŵƉĂŶLJ ͕ ǁŚŝĐŚ ǁĞƌĞ ĂƉƉƌŽǀĞĚ ďLJ ƚŚĞ ŽĂƌĚ ŽĨ ŝƌĞĐƚŽƌƐ ŽŶ
DĂLJϮϬ͕ϮϬϭϯ͕DĂLJϭϴ͕ϮϬϭϮ͖DĂLJϮϲ͕ϮϬϭϭ͖DĂLJϮϭ͕ϮϬϭϬĂŶĚDĂLJϯϬ͕ϮϬϬϵƌĞƐƉĞĐƚŝǀĞůLJ͕ǁŚŝĐŚ
ŚĂǀĞďĞĞŶĂƵĚŝƚĞĚ ďLJƵƐĂŶĚŝŶƌĞƐƉĞĐƚŽĨ ǁŚŝĐŚ ǁĞŚĂǀĞŝƐƐƵĞĚĂƵĚŝƚ ƌĞƉŽƌƚ ĚĂƚĞĚ DĂLJ ϮϬ͕ϮϬϭϯ͖
DĂLJϭϴ͕ϮϬϭϮ͖DĂLJϮϲ͕ϮϬϭϭ͖DĂLJϮϭ͕ϮϬϭϬĂŶĚDĂLJϯϬ͕ϮϬϬϵƌĞƐƉĞĐƚŝǀĞůLJ͘
ϯ͘
tĞ ŚĂǀĞ ĞdžĂŵŝŶĞĚ ƚŚĞ ZĞĨŽƌŵĂƚƚĞĚ ^ƚĂƚĞŵĞŶƚƐ͕ ƉƌĞƉĂƌĞĚ ďLJ ƚŚĞ ŽŵƉĂŶLJ ĂŶĚ ĂƉƉƌŽǀĞĚ ďLJ ƚŚĞ
ŽŵŵŝƚƚĞĞǁŚŝĐŚŝƐĂƵƚŚŽƌŝƐĞĚďLJƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐ͕ŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐŽĨdŚĞ
ZĞǀŝƐĞĚ 'ƵŝĚĂŶĐĞ EŽƚĞ ŽŶ ZĞƉŽƌƚƐ ŝŶ ŽŵƉĂŶLJ WƌŽƐƉĞĐƚƵƐĞƐ ŝƐƐƵĞĚ ďLJ ƚŚĞ /ŶƐƚŝƚƵƚĞ ŽĨ ŚĂƌƚĞĚ
ĐĐŽƵŶƚĂŶƚƐŽĨ/ŶĚŝĂ͘
F-1
ϰ͘
&ŽƌƚŚĞƉƵƌƉŽƐĞŽĨŽƵƌĂƵĚŝƚŽĨƚŚĞƵŶĐŽŶƐŽůŝĚĂƚĞĚĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŽĨƚŚĞŽŵƉĂŶLJĨŽƌƚŚĞLJĞĂƌƐ
ĞŶĚĞĚDĂƌĐŚϯϭ͕ϮϬϭϯ͕DĂƌĐŚϯϭ͕ϮϬϭϮ͕DĂƌĐŚϯϭ͕ϮϬϭϭ͕DĂƌĐŚϯϭ͕ϮϬϭϬ͕ĂŶĚ DĂƌĐŚ ϯϭ͕ ϮϬϬϵ͕ ǁĞ
ŚĂǀĞƉůĂĐĞĚƌĞůŝĂŶĐĞŽŶƚŚĞĨŽůůŽǁŝŶŐ͗
Ă͘
dŚĞ ŬƐ ŽĨ ĂĐĐŽƵŶƚ ƵŶĚĞƌůLJŝŶŐ ƚŚĞ ĂƵĚŝƚĞĚ ƵŶĐŽŶƐŽůŝĚĂƚĞĚ ĨŝŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ ĂŶĚ
ƌĞůĂƚĞĚ ǁŽƌŬŝŶŐ ƉƌĞƉĂƌĞĚ ďLJ ƚŚĞ ĐŽŵƉĂŶLJ͕ ŝŶ ƌĞƐƉĞĐƚ ŽĨ ƚŚĞ LJĞĂƌƐ ĞŶĚĞĚ DĂƌĐŚ ϯϭ͕ ϮϬϭϯ͖
DĂƌĐŚϯϭ͕ϮϬϭϮ͖DĂƌĐŚϯϭ͕ϮϬϭϭ͖DĂƌĐŚϯϭ͕ϮϬϭϬĂŶĚDĂƌĐŚϯϭ͕ϮϬϬϵ
ď͘
ϱ͘
;ĂͿ
;ďͿ
dŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĂƐĂƚDĂƌĐŚϯϭ͕ϮϬϭϭ͕DĂƌĐŚϯϭ͕ϮϬϭϬĂŶĚDĂƌĐŚϯϭ͕ϮϬϬϵƌĞůĂƚŝŶŐ
ƚŽĐŽƌƉŽƌĂƚĞƌĞŐŝŽŶŚĂǀĞďĞĞŶĂƵĚŝƚĞĚďLJƵƐĂŶĚŽƚŚĞƌƌĞŐŝŽŶƐŚĂǀĞďĞĞŶĂƵĚŝƚĞĚďLJƌĂŶĐŚ
ĂƵĚŝƚŽƌƐ͕ǁŚŽƐĞƌĞƉŽƌƚƐŚĂǀĞďĞĞŶĨŽƌǁĂƌĚĞĚƚŽĂŶĚĐŽŶƐŝĚĞƌĞĚďLJƵƐ͕ĂƐƐƚĂƚĞĚŝŶŽƵƌĂƵĚŝƚ
ƌĞƉŽƌƚƐĚĂƚĞĚDĂLJϮϲ͕ϮϬϭϭ͖DĂLJϮϭ͕ϮϬϭϬĂŶĚDĂLJϯϬ͕ϮϬϬϵƌĞƐƉĞĐƚŝǀĞůLJ͘
/Ŷ ĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚ ƚŚĞ ƌĞƋƵŝƌĞŵĞŶƚƐ ŽĨ WĂƌĂŐƌĂƉŚ ŽĨ WĂƌƚ // ŽĨ ^ĐŚĞĚƵůĞ // ŽĨ ƚŚĞ Đƚ͕ ƚŚĞ ^/
ZĞŐƵůĂƚŝŽŶƐ͕ƚĞƌŵƐŽĨŽƵƌĞŶŐĂŐĞŵĞŶƚƐĂŐƌĞĞĚǁŝƚŚLJŽƵ͕ǁĞĨƵƌƚŚĞƌƌĞƉŽƌƚƚŚĂƚ͗
dŚĞ ZĞĨŽƌŵĂƚƚĞĚ ƵŶĐŽŶƐŽůŝĚĂƚĞĚ ^ƵŵŵĂƌLJ ^ƚĂƚĞŵĞŶƚƐ ŽĨ ƐƐĞƚ ĂŶĚ >ŝĂďŝůŝƚŝĞƐ ĂŶĚ ƚŚĞ ƐĐŚĞĚƵůĞƐ
ĨŽƌŵŝŶŐƉĂƌƚƚŚĞƌĞŽĨ͕ZĞĨŽƌŵĂƚƚĞĚƵŶĐŽŶƐŽůŝĚĂƚĞĚ ^ƵŵŵĂƌLJ^ƚĂƚĞŵĞŶƚƐŽĨWƌŽĨŝƚĂŶĚ>ŽƐƐĂŶĚƚŚĞ
ƐĐŚĞĚƵůĞƐ ĨŽƌŵŝŶŐ ƉĂƌƚ ƚŚĞƌĞŽĨ ĂŶĚ ƚŚĞ ZĞĨŽƌŵĂƚƚĞĚ ƵŶĐŽŶƐŽůŝĚĂƚĞĚ ^ƵŵŵĂƌLJ ^ƚĂƚĞŵĞŶƚ ŽĨ ĂƐŚ
&ůŽǁ ;ΖZĞĨŽƌŵĂƚƚĞĚ ƵŶĐŽŶƐŽůŝĚĂƚĞĚ ^ƵŵŵĂƌLJ ^ƚĂƚĞŵĞŶƚΖͿ ŽĨ ƚŚĞ ŽŵƉĂŶLJ͕ ĂƐ Ăƚ DĂƌĐŚ ϯϭ͕ ϮϬϭϯ͖
DĂƌĐŚϯϭ͕ϮϬϭϮ͖DĂƌĐŚϯϭ͖ϮϬϭϭ͖DĂƌĐŚϯϭ͕ϮϬϭϬĂŶĚDĂƌĐŚϯϭ͕ϮϬϬϵĞdžĂŵŝŶĞĚďLJƵƐ͕ŚĂǀĞďĞĞŶ
ƐĞƚŽƵƚŝŶŶŶĞdžƵƌĞ/ƚŽ/sƚŽƚŚŝƐƌĞƉŽƌƚ͘dŚĞƐĞZĞĨŽƌŵĂƚƚĞĚƵŶĐŽŶƐŽůŝĚĂƚĞĚ^ƵŵŵĂƌLJƐƚĂƚĞŵĞŶƚƐ
ĂƌĞĂĨƚĞƌƌĞŐƌŽƵƉŝŶŐĂƐŝŶŽƵƌŽƉŝŶŝŽŶĂƉƉƌŽƉƌŝĂƚĞĂŶĚŵŽƌĞĨƵůůLJĚĞƐĐƌŝďĞĚŝŶ^ŝŐŶŝĨŝĐĂŶƚĐĐŽƵŶƚŝŶŐ
WŽůŝĐŝĞƐĂŶĚEŽƚĞƐ;ZĞĨĞƌŶŶĞdžƵƌĞ/sͿ͘
ĂƐĞĚŽŶƚŚĞĂďŽǀĞǁĞƐƚĂƚĞƚŚĂƚ͗
ƚŚĞZĞĨŽƌŵĂƚƚĞĚƵŶĐŽŶƐŽůŝĚĂƚĞĚ^ƵŵŵĂƌLJ^ƚĂƚĞŵĞŶƚƐŚĂǀĞƚŽďĞƌĞĂĚŝŶĐŽŶũƵŶĐƚŝŽŶǁŝƚŚ
ƚŚĞŶŽƚĞƐŐŝǀĞŶŝŶŶŶĞdžƵƌĞ/s͖
ƚŚĞĨŝŐƵƌĞƐŽĨĞĂƌůŝĞƌƉĞƌŝŽĚŚĂǀĞďĞĞŶƌĞŐƌŽƵƉĞĚ͕ǁŚĞƌĞǀĞƌŶĞĐĞƐƐĂƌLJ͕ƚŽĐŽŶĨŽƌŵƚŽƚŚĞ
ĐůĂƐƐŝĨŝĐĂƚŝŽŶ ĂĚŽƉƚĞĚ ĨŽƌ ƚŚĞ ZĞĨŽƌŵĂƚƚĞĚ ƵŶĐŽŶƐŽůŝĚĂƚĞĚ ^ƵŵŵĂƌLJ ^ƚĂƚĞŵĞŶƚƐ ĂƐ ĂƚͬĨŽƌ
ƚŚĞLJĞĂƌĞŶĚĞĚDĂƌĐŚϯϭ͕ϮϬϭϯ͖
ƚŚĞƌĞĂƌĞŶŽĞdžƚƌĂŽƌĚŝŶĂƌLJŝƚĞŵƐǁŚŝĐŚŶĞĞĚƚŽďĞĚŝƐĐůŽƐĞĚƐĞƉĂƌĂƚĞůLJŝŶƚŚĞƌĞĨŽƌŵĂƚƚĞĚ
ƵŶĐŽŶƐŽůŝĚĂƚĞĚƐƵŵŵĂƌLJƐƚĂƚĞŵĞŶƚƐ͖ĂŶĚƚŚĞƌĞĂƌĞŶŽƋƵĂůŝĨŝĐĂƚŝŽŶƐŝŶƚŚĞĂƵĚŝƚŽƌƐƌĞƉŽƌƚƐ͕
ǁŚŝĐŚƌĞƋƵŝƌĞĂŶLJĂĚũƵƐƚŵĞŶƚƐƚŽƚŚĞƌĞĨŽƌŵĂƚƚĞĚƵŶĐŽŶƐŽůŝĚĂƚĞĚƐƵŵŵĂƌLJƐƚĂƚĞŵĞŶƚƐ
ϲ͘
ϳ͘
/ŶƚŚĞƉƌĞƉĂƌĂƚŝŽŶĂŶĚƉƌĞƐĞŶƚĂƚŝŽŶŽĨƚŚĞZĞĨŽƌŵĂƚƚĞĚ^ƚĂƚĞŵĞŶƚƐďĂƐĞĚŽŶĂƵĚŝƚĞĚƵŶĐŽŶƐŽůŝĚĂƚĞĚ
ĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĂƐƌĞĨĞƌƌĞĚƚŽŝŶƉĂƌĂŐƌĂƉŚƐϯĂŶĚϰĂďŽǀĞ͕ŶŽĂĚũƵƐƚŵĞŶƚŚĂǀĞďĞĞŶŵĂĚĞĨŽƌ
ĂŶLJĞǀĞŶƚƐŽĐĐƵƌƌŝŶŐƐƵďƐĞƋƵĞŶƚƚŽƚŚĞĚĂƚĞƐŽĨƚŚĞĂƵĚŝƚƌĞƉŽƌƚƐƐƉĞĐŝĨŝĞĚŝŶƉĂƌĂŐƌĂƉŚϮĂďŽǀĞ͘
ƐƐƚĂƚĞĚŝŶŽƵƌĂƵĚŝƚƌĞƉŽƌƚƐƌĞĨĞƌƌĞĚƚŽŝŶƉĂƌĂŐƌĂƉŚϮĂďŽǀĞ͕ǁĞĐŽŶĚƵĐƚĞĚŽƵƌĂƵĚŝƚŝŶĂĐĐŽƌĚĂŶĐĞ
ǁŝƚŚ ƚŚĞ ĂƵĚŝƚŝŶŐ ƐƚĂŶĚĂƌĚƐ ŐĞŶĞƌĂůůLJ ĂĐĐĞƉƚĞĚ ŝŶ /ŶĚŝĂ ƚŽ ĞŶĂďůĞ ƵƐ ƚŽ ŝƐƐƵĞ ĂŶ ŽƉŝŶŝŽŶ ŽŶ ƚŚĞ
'ĞŶĞƌĂůWƵƌƉŽƐĞ&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐ͘dŚŽƐĞƐƚĂŶĚĂƌĚƐƌĞƋƵŝƌĞƚŚĂƚǁĞƉůĂŶĂŶĚƉĞƌĨŽƌŵƚŚĞĂƵĚŝƚ
ƚŽ ŽďƚĂŝŶ ƌĞĂƐŽŶĂďůĞ ĂƐƐƵƌĂŶĐĞ ĂďŽƵƚ ǁŚĞƚŚĞƌ ƚŚĞ ĨŝŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ ĂƌĞ ĨƌĞĞ ŽĨ ŵĂƚĞƌŝĂů
ŵŝƐƐƚĂƚĞŵĞŶƚƐ͘ Ŷ ĂƵĚŝƚ ŝŶĐůƵĚĞƐ͕ ĞdžĂŵŝŶŝŶŐ ŽŶ Ă ƚĞƐƚ ďĂƐŝƐ͕ ĞǀŝĚĞŶĐĞ ƐƵƉƉŽƌƚŝŶŐ ƚŚĞ ĂŵŽƵŶƚƐ ĂŶĚ
ĚŝƐĐůŽƐƵƌĞƐŝŶƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘ŶĂƵĚŝƚĂůƐŽŝŶĐůƵĚĞƐĂƐƐĞƐƐŝŶŐƚŚĞĂĐĐŽƵŶƚŝŶŐƉƌŝŶĐŝƉůĞƐƵƐĞĚ
ĂŶĚƐŝŐŶŝĨŝĐĂŶƚĞƐƚŝŵĂƚĞƐŵĂĚĞďLJƚŚĞŵĂŶĂŐĞŵĞŶƚ͕ĂƐǁĞůůĂƐĞǀĂůƵĂƚŝŽŶŽĨƚŚĞŽǀĞƌĂůůƉƌĞƐĞŶƚĂƚŝŽŶ
ŽĨĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘tĞďĞůŝĞǀĞƚŚĂƚŽƵƌĂƵĚŝƚƉƌŽǀŝĚĞƐĂƌĞĂƐŽŶĂďůĞďĂƐŝƐĨŽƌŽƵƌŽƉŝŶŝŽŶ͘
F-2
ϴ͘
ϵ͘
KƵƌĂƵĚŝƚƐƌĞĨĞƌƌĞĚƚŽŝŶƉĂƌĂŐƌĂƉŚϮĂďŽǀĞǁĞƌĞĐĂƌƌŝĞĚŽƵƚĨŽƌƚŚĞƉƵƌƉŽƐĞŽĨĐĞƌƚŝĨLJŝŶŐƚŚĞŐĞŶĞƌĂů
ƉƵƌƉŽƐĞ ĨŝŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ ƚĂŬĞŶ ĂƐ Ă ǁŚŽůĞ͘ &Žƌ ŶŽŶĞ ŽĨ ƚŚĞ ƉĞƌŝŽĚƐ ƌĞĨĞƌƌĞĚ ƚŽ ŝŶ ƉĂƌĂŐƌĂƉŚ Ϯ
ĂďŽǀĞ͕ĚŝĚǁĞƉĞƌĨŽƌŵĂƵĚŝƚƚĞƐƚƐĨŽƌƚŚĞƉƵƌƉŽƐĞŽĨĞdžƉƌĞƐƐŝŶŐĂŶŽƉŝŶŝŽŶŽŶ ŝŶĚŝǀŝĚƵĂůďĂůĂŶĐĞƐŽĨ
ĂĐĐŽƵŶƚŽƌƐƵŵŵĂƌŝĞƐŽĨƐĞůĞĐƚĞĚƚƌĂŶƐĂĐƚŝŽŶƐ͕ĂŶĚĂĐĐŽƌĚŝŶŐůLJ͕ǁĞĞdžƉƌĞƐƐŶŽƐƵĐŚŽƉŝŶŝŽŶƚŚĞƌĞŽŶ͘
tĞŚĂǀĞĂƵĚŝƚĞĚƵŶĐŽŶƐŽůŝĚĂƚĞĚĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŽĨƚŚĞŽŵƉĂŶLJƌĞůĂƚŝŶŐƚŽƚŚĞŚĂůĨLJĞĂƌĞŶĚĞĚ
ƚŚ
ƚŚ
ϯϬ ^ĞƉƚĞŵďĞƌϮϬϭϯĐŽŵƉƌŝƐŝŶŐŽĨĂůĂŶĐĞ^ŚĞĞƚĂƐĂƚϯϬ ^ĞƉƚĞŵďĞƌϮϬϭϯĂŶĚ^ƚĂƚĞŵĞŶƚŽĨWƌŽĨŝƚ
Θ>ŽƐƐĂŶĚĂƐŚ&ůŽǁ^ƚĂƚĞŵĞŶƚĂůŽŶŐǁŝƚŚŶŽƚĞƐƚŽĂĐĐŽƵŶƚƐĨŽƌƚŚĞŚĂůĨLJĞĂƌĞŶĚĞĚŽŶƚŚĂƚĚĂƚĞ͕ĂƐ
ƐĞƚŽƵƚĂƚŶŶĞdžƵƌĞy//͕ƵŶĚĞƌĂƐĞƉĂƌĂƚĞĂƵĚŝƚƌĞƉŽƌƚĨŽƌƚŚĞƉƵƌƉŽƐĞ͘
KƚŚĞƌƵŶĐŽŶƐŽůŝĚĂƚĞĚ&ŝŶĂŶĐŝĂů/ŶĨŽƌŵĂƚŝŽŶ͗
ϭϬ͘
ƚƚŚĞŽŵƉĂŶLJΖƐƌĞƋƵĞƐƚ͕ǁĞŚĂǀĞĂůƐŽĞdžĂŵŝŶĞĚƚŚĞĨŽůůŽǁŝŶŐƵŶĐŽŶƐŽůŝĚĂƚĞĚĨŝŶĂŶĐŝĂůŝŶĨŽƌŵĂƚŝŽŶ
ƉƌŽƉŽƐĞĚ ƚŽ ďĞ ŝŶĐůƵĚĞĚ ŝŶ ƚŚĞ K ƉƌĞƉĂƌĞĚ ďLJ ƚŚĞ ŵĂŶĂŐĞŵĞŶƚ ĂŶĚ ĂƉƉƌŽǀĞĚ ďLJ ƚŚĞ ŽŵŵŝƚƚĞĞ
ĂŶĚ ĂŶŶĞdžĞĚ ƚŽ ƚŚŝƐ ƌĞƉŽƌƚ ƌĞůĂƚŝŶŐ ƚŽ ƚŚĞ ŽŵƉĂŶLJ ĨŽƌ ƚŚĞ LJĞĂƌƐ ĞŶĚĞĚ ;ƵŶůĞƐƐ ƐƉĞĐŝĨŝĞĚ ͞ĂƐ Ăƚ͟Ϳ
DĂƌĐŚϯϭ͕ϮϬϭϯ͕DĂƌĐŚϯϭ͕ϮϬϭϮ͕DĂƌĐŚϯϭ͕ϮϬϭϭ͕DĂƌĐŚϯϭ͕ϮϬϭϬĂŶĚDĂƌĐŚϯϭ͕ϮϬϬϵ͗
Ͳ
^ƚĂƚĞŵĞŶƚ ŽĨ ĐŽŶƚŝŶŐĞŶƚ ůŝĂďŝůŝƚŝĞƐ ĂƐ Ăƚ DĂƌĐŚ ϯϭ͕ ϮϬϭϯ͕ DĂƌĐŚ ϯϭ͕ ϮϬϭϮ͕ DĂƌĐŚ ϯϭ͕ ϮϬϭϭ͕
DĂƌĐŚϯϭ͕ϮϬϭϬĂŶĚDĂƌĐŚϯϭ͕ϮϬϬϵ͕ĞŶĐůŽƐĞĚĂƐŶŶĞdžƵƌĞs
Ͳ
^ƚĂƚĞŵĞŶƚŽĨĚŝǀŝĚĞŶĚƉĂŝĚͬƉƌŽƉŽƐĞĚ͕ĞŶĐůŽƐĞĚĂƐŶŶĞdžƵƌĞs/
Ͳ
^ƚĂƚĞŵĞŶƚ ŽĨĂĐĐŽƵŶƚŝŶŐƌĂƚŝŽƐƌĞůĂƚŝŶŐƚŽĞĂƌŶŝŶŐƐƉĞƌ ƐŚĂƌĞ͕ŶĞƚ ĂƐƐĞƚ ǀĂůƵĞ;ĂƐĂƚDĂƌĐŚ
ϯϭ͕ϮϬϭϯ͕DĂƌĐŚϯϭ͕ϮϬϭϮ͕DĂƌĐŚ͖ϯϭ͕ϮϬϭϭ͕DĂƌĐŚϯϭ͕ϮϬϭϬĂŶĚDĂƌĐŚϯϭ͕ϮϬϬϵͿ͕ƌĞƚƵƌŶŽŶ
ŶĞƚ ǁŽƌƚŚ ;ĂƐ Ăƚ DĂƌĐŚ ϯϭ͕ ϮϬϭϯ͕ DĂƌĐŚ ϯϭ͕ ϮϬϭϮ͕ DĂƌĐŚ ϯϭ͕ ϮϬϭϭ͕ DĂƌĐŚ ϯϭ͕ ϮϬϭϬ ĂŶĚ
DĂƌĐŚϯϭ͕ϮϬϬϵͿ͕ĞŶĐůŽƐĞĚĂƐŶŶĞdžƵƌĞs//
Ͳ
^ƚĂƚĞŵĞŶƚ ŽĨ ^ĞĐƵƌĞĚ ĂŶĚ hŶƐĞĐƵƌĞĚ >ŽĂŶƐ ŝŶĐůƵĚŝŶŐ ƚĞƌŵƐ ĂŶĚ ĐŽŶĚŝƚŝŽŶƐ͕ ĞŶĐůŽƐĞĚ ĂƐ
ŶŶĞdžƵƌĞs///Θ/y;ĂƐĂƚDĂƌĐŚϯϭ͕ϮϬϭϯ͕DĂƌĐŚϯϭ͕ϮϬϭϮ͕DĂƌĐŚϯϭ͕ϮϬϭϭ͕DĂƌĐŚϯϭ͕ϮϬϭϬ
ĂŶĚDĂƌĐŚϯϭ͕ϮϬϬϵͿ
Ͳ
ĂƉŝƚĂůŝnjĂƚŝŽŶ^ƚĂƚĞŵĞŶƚĂƐĂƚDĂƌĐŚϯϭ͕ϮϬϭϯ͕ĞŶĐůŽƐĞĚĂƐŶŶĞdžƵƌĞy
Ͳ
^ƚĂƚĞŵĞŶƚŽĨƚĂdžƐŚĞůƚĞƌƐ͕ĞŶĐůŽƐĞĚĂƐŶŶĞdžƵƌĞy/͘
ϭϭ͘
/ŶŽƵƌŽƉŝŶŝŽŶ͕ƚŚĞZĞĨŽƌŵĂƚƚĞĚhŶĐŽŶƐŽůŝĚĂƚĞĚĨŝŶĂŶĐŝĂůŝŶĨŽƌŵĂƚŝŽŶĂƐĚŝƐĐůŽƐĞĚŝŶƚŚĞĂŶŶĞdžƵƌĞƐƚŽ
ƚŚŝƐƌĞƉŽƌƚ͕ƌĞĂĚǁŝƚŚƚŚĞƌĞƐƉĞĐƚŝǀĞƐŝŐŶŝĨŝĐĂŶƚĂĐĐŽƵŶƚŝŶŐƉŽůŝĐŝĞƐĂŶĚŶŽƚĞƐ ĚŝƐĐůŽƐĞĚŝŶŶŶĞdžƵƌĞ
/s͕ĂƐĐŽŶƐŝĚĞƌĞĚĂƉƉƌŽƉƌŝĂƚĞĂŶĚĚŝƐĐůŽƐĞĚ͕ŚĂƐďĞĞŶƉƌĞƉĂƌĞĚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚWĂƌĂŐƌĂƉŚ;ϭͿŽĨ
WĂƌƚ//ŽĨ^ĐŚĞĚƵůĞƐ//ŽĨƚŚĞĐƚĂŶĚƚŚĞZĞŐƵůĂƚŝŽŶƐ͘
ϭϮ͘
tĞ ŚĂǀĞ ŶŽ ƌĞƐƉŽŶƐŝďŝůŝƚLJ ƚŽ ƵƉĚĂƚĞ ŽƵƌ ƌĞƉŽƌƚ ĨŽƌ ĞǀĞŶƚƐ ĂŶĚ ĐŝƌĐƵŵƐƚĂŶĐĞƐ ŽĐĐƵƌƌŝŶŐ
ĂĨƚĞƌƚŚĞĚĂƚĞŽĨƚŚĞƌĞƉŽƌƚ͘
ϭϯ͘
dŚŝƐ ƌĞƉŽƌƚ ƐŚŽƵůĚ ŶŽƚ ŝŶ ĂŶLJ ǁĂLJ ďĞ ĐŽŶƐƚƌƵĞĚ ĂƐ Ă ƌĞͲŝƐƐƵĂŶĐĞ Žƌ ƌĞĚĂƚŝŶŐ ŽĨ ĂŶLJ ŽĨ ƚŚĞ ƉƌĞǀŝŽƵƐ
ĂƵĚŝƚ ƌĞƉŽƌƚƐ ŝƐƐƵĞĚ ďLJ ƵƐ ŶŽƌ ƐŚŽƵůĚ ƚŚŝƐ ďĞ ĐŽŶƐƚƌƵĞĚ ĂƐ Ă ŶĞǁ ŽƉŝŶŝŽŶ ŽŶ ĂŶLJ ŽĨ ƚŚĞ ĨŝŶĂŶĐŝĂů
ƐƚĂƚĞŵĞŶƚƐƌĞĨĞƌƌĞĚƚŽŚĞƌĞŝŶ͘
ϭϰ͘
dŚŝƐ ƌĞƉŽƌƚ ŝƐ ŝŶƚĞŶĚĞĚ ĨŽƌ LJŽƵƌ ŝŶĨŽƌŵĂƚŝŽŶ ĂŶĚ ĨŽƌ ŝŶĐůƵƐŝŽŶ ŝŶ ƚŚĞ KĨĨĞƌŝŶŐ ĚŽĐƵŵĞŶƚ ĨŝůĞĚ ŝŶ
ĐŽŶŶĞĐƚŝŽŶǁŝƚŚƚŚĞƉƌŽƉŽƐĞĚŽĨĨĞƌŽĨEŽŶͲŽŶǀĞƌƚŝďůĞĞďĞŶƚƵƌĞŽĨ ^ŚƌŝƌĂŵ ŝƚLJ hŶŝŽŶ &ŝŶĂŶĐĞ
>ŝŵŝƚĞĚ ĂŶĚ ŝƐ ŶŽƚ ƚŽ ďĞ ƵƐĞĚ͕ ƌĞĨĞƌƌĞĚ ƚŽ Žƌ ĚŝƐƚƌŝďƵƚĞĚ ĨŽƌ ĂŶLJ ŽƚŚĞƌ ƉƵƌƉŽƐĞ͕ ǁŝƚŚŽƵƚ ŽƵƌ ƉƌŝŽƌ
ǁƌŝƚƚĞŶĐŽŶƐĞŶƚ͕
&ŽƌWŝũƵƐŚ'ƵƉƚĂΘŽ͕
&ŝƌŵZĞŐŝƐƚƌĂƚŝŽŶEŽ͗ϯϬϵϬϭϱ
ŚĂƌƚĞƌĞĚĐĐŽƵŶƚĂŶƚƐ
ZĂŵĞŶĚƌĂEĂƚŚĂƐ
WĂƌƚŶĞƌ
DĞŵďĞƌƐŚŝƉEŽ͗ϬϭϰϭϮϱ
ĂƚĞ͗ͲϮϲKĐƚϮϬϭϯ
F-3
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH,
5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
` LQODFV
3DUWLFXODUV
1RWHV
$VDW0DUFK
(TXLW\DQG/LDELOLWLHV
$6KDUHKROGHUV¶IXQGV
D6KDUHFDSLWDO
E5HVHUYHVDQGVXUSOXV
F0RQH\UHFHLYHGDJDLQVWVKDUH
ZDUUDQWV
7RWDO6KDUHKROGHUV¶IXQGV
3
4
%6KDUHDSSOLFDWLRQPRQH\
SHQGLQJDOORWPHQW
&1RQFXUUHQWOLDELOLWLHV
D/RQJWHUPERUURZLQJV
5
E2WKHUORQJWHUPERUURZLQJV
6
F/RQJWHUPSURYLVLRQV
7
7RWDO1RQFXUUHQWOLDELOLWLHV
'&XUUHQWOLDELOLWLHV
D6KRUWWHUPERUURZLQJV
8
E2WKHUFXUUHQWOLDELOLWLHV
6
F6KRUWWHUPSURYLVLRQV
7
7RWDO&XUUHQWOLDELOLWLHV
(7RWDO(TXLW\DQG/LDELOLWLHV
$%&'
$VVHWV
)1RQFXUUHQWDVVHWV
D)L[HGDVVHWV
L7DQJLEOHDVVHWV
9
LL,QWDQJLEOHDVVHWV
9
E1RQFXUUHQWLQYHVWPHQWV
F'HIHUUHGWD[DVVHWV
G/RQJWHUPORDQVDQGDGYDQFHV
12
H2WKHUQRQFXUUHQWDVVHWV
7RWDO1RQFXUUHQWDVVHWV
*&XUUHQWDVVHWV
D&XUUHQWLQYHVWPHQWV
E&DVKDQGEDQNEDODQFHV
F6KRUWWHUPORDQVDQGDGYDQFHV
G2WKHUFXUUHQWDVVHWV
7RWDO&XUUHQWDVVHWV
+7RWDO$VVHWV)*
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH,
5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
` LQODFV
1HWZRUWKDVDW0DUFK
L6KDUHFDSLWDO
LL5HVHUYHVDQGVXUSOXV
LLL0RQH\UHFHLYHGDJDLQVWVKDUHZDUUDQWV
LY6KDUHDSSOLFDWLRQPRQH\SHQGLQJ
DOORWPHQW
Y/HVV0LVFHOODQHRXV([SHQGLWXUHWRWKH
H[WHQGQRWZULWWHQRIIRUDGMXVWHG
7RWDOLLLLLLLYY
7KHDFFRPSDQ\LQJVWDWHPHQWRI6LJQLILFDQW$FFRXQWLQJSROLFLHVDQG1RWHVWR$FFRXQWRQ6XPPDU\)LQDQFLDO6WDWHPHQWVDUH
LQWHJUDOSDUWRIWKLVVWDWHPHQW
)RUDQGRQEHKDOIRIWKH%RDUGRI'LUHFWRUVRI
$VSHURXUUHSRUWHYHQGDWH
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
)RU3LMXVK*XSWD&R
)LUP5HJLVWUDWLRQ1R(
&KDUWHUHG$FFRXQWDQWV
5DPHQGUD1DWK'DVK
3DUWQHU
5'XUXYDVDQ
0DQDJLQJ'LUHFWRU
*66XQGDUDUDMDQ
0DQDJLQJ'LUHFWRU
0HPEHUVKLSQR
&5'DVK
&RPSDQ\6HFUHWDU\
3ODFH&KHQQDL
'DWH
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH,,
5HIRUPDWWHGVXPPDU\RI6WDWHPHQWRI3URILWDQG/RVV
` LQODFV
3DUWLFXODUV
$,QFRPH
D5HYHQXHIURP2SHUDWLRQ
E2WKHU,QFRPH
1RWHV
)RU\HDUWKHHQGHG0DUFK
21
&3URILWEHIRUHWD[
'7D[H[SHQVH
D&XUUHQWWD[
E'HIHUUHGWD[
F:HDOWKWD[
G)ULQJHEHQHILWWD[
H7D[RIHDUOLHU\HDUV
7RWDOWD[H[SHQVH
7RWDO5HYHQXH
%([SHQVHV
D(PSOR\HHEHQHILWVH[SHQVHV
E)LQDQFHFRVWV
F'HSUHFLDWLRQDQGDPRUWLVDWLRQ
H[SHQVHV
G2WKHUH[SHQVHV
H3URYLVLRQVZULWHRIIVQHW
7RWDOH[SHQVHV
(3URILWDIWHUWD[IURPFRQWLQXLQJRSHUDWLRQV
(DUQLQJVSHUHTXLW\VKDUH
(TXLW\VKDUHVRISDUYDOXH`HDFK
%DVLF`)
'LOXWHG`)
7KHDFFRPSDQ\LQJVWDWHPHQWRI6LJQLILFDQW$FFRXQWLQJSROLFLHVDQG1RWHVWR$FFRXQWRQ6XPPDU\)LQDQFLDO6WDWHPHQWVDUH
LQWHJUDOSDUWRIWKLVVWDWHPHQW
)RUDQGRQEHKDOIRIWKH%RDUGRI'LUHFWRUVRI
$VSHURXUUHSRUWHYHQGDWH
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
)RU3LMXVK*XSWD&R
)LUP5HJLVWUDWLRQ1R(
&KDUWHUHG$FFRXQWDQWV
5DPHQGUD1DWK'DVK
3DUWQHU
5'XUXYDVDQ
*66XQGDUDUDMDQ
5DPHQGUD1DWK'DVK
5DPHQGUD1DWK'DVK
0HPEHUVKLSQR
&5'DVK
&RPSDQ\6HFUHWDU\
3ODFH&KHQQDL
'DWH
)
$QQH[XUH,,,
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
5HIRUPDWWHG6XPPDU\RI&DVK)ORZ6WDWHPHQW
` LQODFV
3DUWLFXODUV
$&DVKIORZIURP2SHUDWLQJDFWLYLWLHV
1HWSURILWEHIRUHWD[DWLRQ
1RQFDVKDGMXVWPHQWVWRUHFRQFLOHSURILW
EHIRUHWD[WRQHWFDVKIORZV
'HSUHFLDWLRQDQGDPRUWL]DWLRQ
3URYLVLRQIRULPSDLUPHQW
3URILWORVVRQVDOHRIIL[HGDVVHWV
(PSOR\HHV6WRFNRSWLRQFRPSHQVDWLRQ
H[SHQVHV
6KDUHDQGGHEHQWXUHLVVXHH[SHQVHV
ZULWWHQRII
3URYLVLRQIRUQRQSHUIRUPLQJDVVHWVDQG
EDGGHEWZULWWHQRII
&RQWLQJHQW3URYLVLRQRQ6WDQGDUGDVVHWV
3URYLVLRQIRUKHGJLQJFRQWUDFWV
3URYLVLRQIRUGLPLQXWLRQLQYDOXHRI
LQYHVWPHQWV
3URYLVLRQIRUJUDWXLW\
3URYLVLRQIRUOHDYHEHQHILWV
3URYLVLRQIRUGLPLQXWLRQLQYDOXHRI
LQYHVWPHQWV
1HWJDLQORVVRQVDOHRILQYHVWPHQWV
,QWHUHVWLQFRPHRQFXUUHQWDQGORQJWHUP
LQYHVWPHQWVDQGLQWHUHVWLQFRPHRQIL[HG
GHSRVLWV
'LYLGHQG,QFRPH
2SHUDWLQJSURILWEHIRUHZRUNLQJFDSLWDO
FKDQJHV
0RYHPHQWLQ:RUNLQJFDSLWDO
,QFUHDVHGHFUHDVHLQDVVWVXQGHU
ILQDQFLQJDFWLYLWLHV
,QFUHDVHGHFUHDVHLQ6KRUWWHUPORDQVDQG
DGYDQFHV
,QFUHDVHGHFUHDVHLQ/RQJWHUPORDQVDQG
DGYDQFHV
,QFUHDVHGHFUHDVHLQRWKHUFXUUHQWDVVHWV
,QFUHDVHGHFUHDVHLQRWKHUQRQFXUUHQW
DVVHWV
,QFUHDVHGHFUHDVHLQRWKHUFXUUHQW
OLDELOLWLHV
,QFUHDVHGHFUHDVHLQRWKHUQRQFXUUHQW
OLDELOLWLHV
&DVKJHQHUDWHGIURPRSHUDWLRQ
'LUHFWWD[HVSDLGQHWRIUHIXQG
1HW&DVKIORZIURPXVHGLQRSHUDWLQJ
DFWLYLWLHV$
)
$QQH[XUH,,,
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
5HIRUPDWWHG6XPPDU\RI&DVK)ORZ6WDWHPHQW
` LQODFV
%&DVKIORZIURPLQYHVWLQJDFWLYLWLHV
,QYHVWPHQWLQ)L[HG'HSRVLWKDYLQJ
RULJLQDOPDWXULW\RIPRUHWKDQWKUHHPRQWKV
,QYHVWPHQWLQPDUJLQPRQH\GHSRVLW
3URFHHGVIURPVDOHRIIL[HGDVVHWV
,QYHVWPHQWLQVXEVLGLDU\FRPSDQ\
3XUFKDVHRIIL[HGDQGLQWDQJLEOHDVVHWV
3XUFKDVHRIQRQFXUUHQWLQYHVWPHQWV
3URFHHGVIURPVDOHRIQRQFXUUHQW
LQYHVWPHQWV
3URFHHGVIURPVDOHRIFXUUHQWLQYHVWPHQWV
QHW
,QWHUHVWUHFHLYHGRQFXUUHQWDQGORQJWHUP
LQYHVWPHQWVDQGLQWHUHVWRQIL[HGGHSRVLWV
'LYLGHQGUHFHLYHG
1HWFDVKIORZIURPXVHGLQLQYHVWLQJ
DFWLYLWLHV%
&&DVKIORZIURPILQDQFLQJDFWLYLWLHV
3URFHHGVIURPLVVXHRIHTXLW\VKDUHFDSLWDO
LQFOXGLQJVHFXULWLHVSUHPLXPDQGVKDUH
DSSOLFDWLRQPRQH\
,QFUHDVHGHFUHDVHRIORQJWHUP
ERUURZLQJV
,QFUHDVHGHFUHDVHRIVKRUWWHUP
ERUURZLQJV
3XEOLFLVVXHH[SHQVHVIRUQRQFRQYHUWLEOH
GHEHQWXUHSDLG
'LYLGHQG3DLG
7D[RQGLYLGHQG
1HW&DVKIORZIURPXVHGLQILQDQFLQJ
DFWLYLWLHV&
1HWLQFUHDVHGHFUHDVHLQFDVKDQGFDVK
HTXLYDOHQWV$%&
&DVKDQGFDVKHTXLYDOHQWVDWWKH
EHJLQQLQJRIWKH\HDU
&DVKDQGFDVKHTXLYDOHQWVDWWKHHQGRI
WKH\HDU
)
$QQH[XUH,,,
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
5HIRUPDWWHG6XPPDU\RI&DVK)ORZ6WDWHPHQW
` LQODFV
&RPSRQHQWRIFDVKDQGFDVKHTXLYDOHQWV
)RUWKH\HDUHQGHG0DUFK
%DQN'HSRVLWZLWKPDWXULW\RIOHVVWKDQPRQWKV
7RWDO&DVKDQGFDVKHTXLYDOHQWV
&DVKRQKDQGDQGUHPLWWDQFHLQWUDQVLW
%DODQFHVZLWKEDQNV
&XUUHQW$FFRXQW
%DODQFHLQXQSDLGGLYLGHQGDFFRXQWV
6XPPDU\RIVLJQLILFDQWDFFRXQWLQJSROLFLHV
7KHDFFRPSDQ\LQJVWDWHPHQWRI6LJQLILFDQW$FFRXQWLQJSROLFLHVDQG1RWHVWR$FFRXQWRQ6XPPDU\)LQDQFLDO6WDWHPHQWVDUH
LQWHJUDOSDUWRIWKLVVWDWHPHQW
)RUDQGRQEHKDOIRIWKH%RDUGRI'LUHFWRUVRI
$VSHURXUUHSRUWHYHQGDWH
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
)RU3LMXVK*XSWD&R
)LUP5HJLVWUDWLRQ1R(
&KDUWHUHG$FFRXQWDQWV
5'XUXYDVDQ
0DQDJLQJ'LUHFWRU
5DPHQGUD1DWK'DVK
3DUWQHU
*66XQGDUDUDMDQ
0DQDJLQJ'LUHFWRU
0HPEHUVKLSQR
&5'DVK
&RPSDQ\6HFUHWDU\
3ODFH&KHQQDL
'DWH
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRIWKHUHIRUPDWWHGVXPPDU\VWDWHPHQWV
$QQH[XUH,9
&RUSRUDWHLQIRUPDWLRQ
6KULUDP &LW\ 8QLRQ )LQDQFH /LPLWHG WKH FRPSDQ\ LV D SXEOLF FRPSDQ\ GRPLFLOHG LQ ,QGLD DQG LV LQFRUSRUDWHG XQGHU WKH
SURYLVLRQVRIWKH&RPSDQLHV$FW,WVVKDUHVDUHOLVWHGRQ%RPED\6WRFN([FKDQJH/WG%6(1DWLRQDO6WRFN([FKDQJHRI
,QGLD/WG16(DQG0DGUDV6WRFN([FKDQJH/WG06(7KHFRPSDQ\LVD'HSRVLW$FFHSWLQJ1RQ%DQNLQJ)LQDQFH&RPSDQ\
1%)&UHJLVWHUHGZLWK5HVHUYH%DQNRI,QGLD5%,7KHFRPSDQ\RSHUDWHVLQ,QGLD
%DVLVRISUHSDUDWLRQ
7KHILQDQFLDOVWDWHPHQWVRIWKHFRPSDQ\KDYHEHHQSUHSDUHGLQDFFRUGDQFHZLWKJHQHUDOO\DFFHSWHGDFFRXQWLQJSULQFLSOHVLQ,QGLD
,QGLDQ *$$3 7KH FRPSDQ\ KDV SUHSDUHG WKHVH ILQDQFLDO VWDWHPHQWV WR FRPSO\ LQ DOO PDWHULDO UHVSHFWV ZLWK WKH DFFRXQWLQJ
VWDQGDUGV QRWLILHG XQGHU WKH &RPSDQLHV $FFRXQWLQJ 6WDQGDUGV 5XOHV DV DPHQGHG WKH UHOHYDQW SURYLVLRQV RI WKH
&RPSDQLHV$FWDQGWKHJXLGHOLQHVLVVXHGE\5%,DVDSSOLFDEOHWR1%)&V7KHILQDQFLDOVWDWHPHQWVKDYHEHHQSUHSDUHGRQ
DQDFFUXDOEDVLVDQGXQGHUWKHKLVWRULFDOFRVWFRQYHQWLRQ
7KH DFFRXQWLQJSROLFLHVDGRSWHGLQWKH SUHSDUDWLRQRIILQDQFLDO VWDWHPHQWVDUH FRQVLVWHQW ZLWKWKRVH XVHGLQWKH SUHYLRXV \HDU
H[FHSWWKHFKDQJHVLQDFFRXQWLQJSROLF\PHQWLRQHGEHORZ
6XPPDU\RIVLJQLILFDQWDFFRXQWLQJSROLFLHV
D&KDQJHLQDFFRXQWLQJSROLF\
3UHVHQWDWLRQDQGGLVFORVXUHRIILQDQFLDOVWDWHPHQWV
'XULQJ WKH UHYLVHG 6FKHGXOH 9, QRWLILHG XQGHU WKH &RPSDQLHV $FW EHFDPH DSSOLFDEOH WR WKH FRPSDQ\ IRU
SUHSDUDWLRQDQGSUHVHQWDWLRQRILWV ILQDQFLDOVWDWHPHQWV7KHDGRSWLRQRIUHYLVHG6FKHGXOH9,GRHVQRWLPSDFWUHFRJQLWLRQDQG
PHDVXUHPHQWSULQFLSOHVIROORZHGIRUSUHSDUDWLRQRIILQDQFLDOVWDWHPHQWV+RZHYHULWKDVVLJQLILFDQWLPSDFWRQSUHVHQWDWLRQ DQG
GLVFORVXUHVPDGHLQWKHILQDQFLDOVWDWHPHQWV
E&XUUHQW1RQFXUUHQWFODVVLILFDWLRQRIDVVHWVOLDELOLWLHV
3XUVXDQWWRDSSOLFDELOLW\RI5HYLVHG6FKHGXOH9,RQSUHVHQWDWLRQRIILQDQFLDOVWDWHPHQWVIRUWKH&RPSDQ\KDVFODVVLILHG
DOO LWV DVVHWV OLDELOLWLHV LQWR FXUUHQW QRQFXUUHQW SRUWLRQ EDVHG RQ WKH WLPH IUDPH RI PRQWKV IURP WKH GDWH RI ILQDQFLDO
VWDWHPHQWV$FFRUGLQJO\DVVHWVOLDELOLWLHVH[SHFWHGWREHUHDOLVHGVHWWOHGZLWKLQPRQWKVIURPWKHGDWHRIILQDQFLDOVWDWHPHQWV
DUHFODVVLILHGDVFXUUHQWDQGRWKHUDVVHWVOLDELOLWLHVDUHFODVVLILHGDVQRQFXUUHQW
F8VHRIHVWLPDWHV
7KH SUHSDUDWLRQ RI ILQDQFLDO VWDWHPHQWV LQ FRQIRUPLW\ ZLWK ,QGLDQ *$$3 UHTXLUHV WKH PDQDJHPHQW WR PDNH HVWLPDWHV DQG
DVVXPSWLRQV WKDW DIIHFW WKH UHSRUWHG DPRXQWV RI UHYHQXHV H[SHQVHV DVVHWV DQG OLDELOLWLHV DQG WKH GLVFORVXUH RI FRQWLQJHQW
OLDELOLWLHVDWWKHGDWHRIWKHILQDQFLDOVWDWHPHQWVDQGUHVXOWVRIRSHUDWLRQVGXULQJWKHUHSRUWLQJ\HDUHQG$OWKRXJKWKHVH HVWLPDWHV
DUHEDVHGRQWKHPDQDJHPHQW¶VEHVWNQRZOHGJHRIFXUUHQWHYHQWVDQGDFWLRQVDFWXDOUHVXOWVFRXOGGLIIHUIURPWKHVHHVWLPDWHV$Q\
UHYLVLRQWRWKHDFFRXQWLQJHVWLPDWHVDUHUHFRJQLVHGLQFXUUHQWDQGIXWXUH\HDUV
G7DQJLEOHIL[HGDVVHWV
)L[HGDVVHWVDUHVWDWHGDWFRVWOHVVDFFXPXODWHGGHSUHFLDWLRQDQGDFFXPXODWHGLPSDLUPHQWORVVHVLIDQ\7KHFRVWFRPSULVHVRI
SXUFKDVH SULFH DQG GLUHFWO\ DWWULEXWDEOH FRVW IRU EULQJLQJ WKH DVVHW WR LWV ZRUNLQJ FRQGLWLRQ IRU WKH LQWHQGHG XVH $Q\ WUDGH
GLVFRXQWVDQGUHEDWHVDUHGHGXFWHGLQDUULYLQJDWWKHSXUFKDVHSULFH
6XEVHTXHQWH[SHQGLWXUHUHODWHGWRDQLWHPRIIL[HGDVVHWLVDGGHGWRLWVERRNYDOXHRQO\LILWLQFUHDVHVWKHIXWXUHEHQHILWVIURPWKH
H[LVWLQJDVVHWEH\RQGLWVSUHYLRXVO\DVVHVVHGVWDQGDUGRISHUIRUPDQFH$OORWKHUH[SHQVHVRQH[LVWLQJIL[HGDVVHWVLQFOXGLQJGD\
WRGD\UHSDLUDQG PDLQWHQDQFHH[SHQGLWXUHDQGFRVWRIUHSODFLQJSDUWVDUHFKDUJHGWRWKH 6WDWHPHQWRI3URILWDQG /RVV IRUWKH
SHULRGGXULQJZKLFKVXFKH[SHQGLWXUHLVLQFXUUHG
*DLQVRUORVVHVDULVLQJIURPGHUHFRJQLWLRQRI IL[HGDVVHWVDUHPHDVXUHGDVWKHGLIIHUHQFHEHWZHHQWKHQHWGLVSRVDOSURFHHGVDQG
WKHFDUU\LQJDPRXQWRIWKHDVVHWDQGDUHUHFRJQLVHGLQWKH6WDWHPHQWRI3URILWDQG/RVVZKHQWKHDVVHWLVGHUHFRJQLVHG
H,QWDQJLEOHIL[HGDVVHWV
,QWDQJLEOHIL[HGDVVHWVDUHVWDWHGDWFRVWOHVVDFFXPXODWHGDPRUWLVDWLRQDQGLPSDLUPHQWORVVHVLIDQ\&RVWFRPSULVHVWKHSXUFKDVH
SULFHDQGDQ\DWWULEXWDEOHFRVWRIEULQJLQJWKHDVVHWWRLWVZRUNLQJFRQGLWLRQIRULWVLQWHQGHGXVH
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRIWKHUHIRUPDWWHGVXPPDU\VWDWHPHQWV
$QQH[XUH,9
I'HSUHFLDWLRQRQWDQJLEOHIL[HGDVVHWV
'HSUHFLDWLRQRQIL[HGDVVHWVLVSURYLGHGRQ6WUDLJKW/LQH 0HWKRG6/0E\XVLQJWKHUDWHVDUULYHGDWEDVHGRQWKHXVHIXOOLYHV
HVWLPDWHGE\WKHPDQDJHPHQWZKLFKDUHJUHDWHUWKDQRUHTXDOWRWKHUDWHVSUHVFULEHGXQGHUWKH6FKHGXOH;,9WRWKH&RPSDQLHV
$FW
/HDVHKROGLPSURYHPHQWVDUHDPRUWLVHGRQ6/0RYHUWKHSULPDU\SHULRGRIOHDVHVXEMHFWWRDPD[LPXPRIPRQWKV$OOIL[HG
DVVHWVLQGLYLGXDOO\FRVWLQJ5VRUOHVVDUHIXOO\GHSUHFLDWHGLQWKH\HDURILQVWDOODWLRQ'HSUHFLDWLRQRQDVVHWVDFTXLUHGVROG
GXULQJ WKH \HDU LV UHFRJQLVHG RQ D SURUDWD EDVLV LQ WKH 6WDWHPHQW RI 3URILW DQG /RVV WLOO WKH GDWH RI VDOH RU IURP WKH GDWH RI
DFTXLVLWLRQ
J'HSUHFLDWLRQRQLQWDQJLEOHDVVHWV
$PRUWLVDWLRQLVSURYLGHGRQ6WUDLJKW/LQH0HWKRGµ6/0¶ZKLFKUHIOHFWVWKHPDQDJHPHQW¶VHVWLPDWHRIWKHXVHIXOOLIHRIWKH
LQWDQJLEOHDVVHW7KHFRPSDQ\KDVXVHGWKHIROORZLQJUDWHWRSURYLGHGHSUHFLDWLRQRQWKHLQWDQJLEOHDVVHWV
5DWHV6/0
&RPSXWHUVRIWZDUH
$PRUWLVDWLRQRQDVVHWVDFTXLUHGVROGGXULQJWKH\HDULVUHFRJQLVHGRQSURUDWDEDVLVLQWKH6WDWHPHQWRI3URILWDQG/RVVWLOOWKHGDWH
RIVDOHRUIURPWKHGDWHRIDFTXLVLWLRQ
K,PSDLUPHQWRIDVVHWV
7KHFRPSDQ\DVVHVVHVDWHDFKEDODQFHVKHHWGDWHLIWKHUHLVDQLQGLFDWLRQRILPSDLUPHQWRIDQ\DVVHW,IDQ\LQGLFDWLRQH[LVWVWKH
FRPSDQ\ HVWLPDWHV WKH UHFRYHUDEOH DPRXQW RI WKH DVVHW 7KH UHFRYHUDEOH DPRXQW RI DQ DVVHW LV JUHDWHU RI QHW VHOOLQJ SULFH DQG
YDOXH LQ XVH RI WKH DVVHW :KHUH WKH FDUU\LQJ DPRXQW RI DQ DVVHW LV PRUH WKDQ LWV UHFRYHUDEOH DPRXQW WKH DVVHW LV FRQVLGHUHG
LPSDLUHGDQGLVZULWWHQGRZQWRLW¶VUHFRYHUDEOHDPRXQW7KHYDOXHLQXVHLVWKHHVWLPDWHGIXWXUHFDVKIORZVGLVFRXQWHGWR
WKHLUSUHVHQWYDOXHDWSUHWD[GLVFRXQWUDWHZKLFKUHIOHFWVFXUUHQWPDUNHWDVVHVVPHQWRIWKHWLPHYDOXHRIPRQH\DQGULVNVSHFLILF
WRWKHDVVHW
$IWHULPSDLUPHQWGHSUHFLDWLRQLVSURYLGHGRQWKHUHYLVHGFDUU\LQJDPRXQWRIWKHDVVHWRYHULWVUHPDLQLQJXVHIXOOLIH
$QDVVHVVPHQWLVPDGHDWHDFK%DODQFH6KHHWGDWHDERXWH[LVWHQFHRUGHFUHDVHRISUHYLRXVO\UHFRJQLVHGLPSDLUPHQWORVVHV,I
VXFK LQGLFDWLRQ H[LVWV WKH FRPSDQ\ HVWLPDWHV WKH DVVHW¶V UHFRYHUDEOH DPRXQW $ SUHYLRXVO\ UHFRJQLVHG LPSDLUPHQW ORVV LV
LQFUHDVHGRUUHYHUVHGGHSHQGLQJRQWKHFKDQJHVLQWKHFLUFXPVWDQFHV+RZHYHUWKHFDUU\LQJYDOXHDIWHUUHYHUVDOLVQRWLQFUHDVHG
EH\RQGWKHFDUU\LQJYDOXHWKDWZRXOGKDYHSUHYDLOHGE\FKDUJLQJXVXDOGHSUHFLDWLRQLIWKHUHZDVQRLPSDLUPHQW
L&DSLWDODGYDQFHV
&DSLWDODGYDQFHVDUHDGYDQFHVJLYHQIRUSURFXUHPHQWRIIL[HGDVVHWV&RPSDQ\GRHVQRWH[SHFWWRUHDOLVHWKHPLQFDVKDQGRYHUD
SHULRGRIWLPHWKHVHDGYDQFHVJHWFRQYHUWHGLQWRIL[HGDVVHWVZKLFKDUHQRQFXUUHQWE\QDWXUH7KHUHIRUHLUUHVSHFWLYHRIZKHQWKH
IL[HGDVVHWVDUHH[SHFWHGWREHUHFHLYHGVXFKDGYDQFHVDUHGLVFORVHGXQGHUORQJWHUPORDQVDQGDGYDQFHV
M%RUURZLQJFRVWV
%RUURZLQJ FRVW LQFOXGHV LQWHUHVW DQG H[FKDQJH GLIIHUHQFHV DULVLQJ IURP IRUHLJQ FXUUHQF\ ERUURZLQJV WR WKH H[WHQW WKH\ DUH
UHJDUGHGDVDQDGMXVWPHQWWRWKHLQWHUHVWFRVW$QFLOODU\DQGRWKHUERUURZLQJFRVWVDUHFKDUJHGWRWLOOWKHGDWHRIVDOHRUIURPWKH
GDWHRIDFTXLVLWLRQLQWKH\HDULQZKLFKWKH\DUHLQFXUUHG
N,QYHVWPHQWV
,QYHVWPHQWVLQWHQGHGWREHKHOGIRUQRWPRUHWKDQRQH\HDUIURPWKHGDWHRQZKLFKVXFKLQYHVWPHQWVDUHPDGHDUHFODVVLILHGDV
FXUUHQWLQYHVWPHQWV$OORWKHULQYHVWPHQWVDUHFODVVLILHGDVQRQFXUUHQWLQYHVWPHQWV
&XUUHQWLQYHVWPHQWVDUHFDUULHGLQWKHILQDQFLDOVWDWHPHQWVDWORZHURIFRVWDQGIDLUYDOXHGHWHUPLQHGRQDQLQGLYLGXDOLQYHVWPHQW
EDVLV 1RQFXUUHQW LQYHVWPHQWV DUH FDUULHG DW FRVW +RZHYHU SURYLVLRQ IRU GLPLQXWLRQ LQ YDOXH LV PDGH WR UHFRJQLVH D GHFOLQH
RWKHUWKDQWHPSRUDU\LQWKHYDOXHRIVXFKLQYHVWPHQWV
2QGLVSRVDORIDQLQYHVWPHQWWKHGLIIHUHQFHEHWZHHQLWVFDUU\LQJDPRXQWDQGQHWGLVSRVDOSURFHHGVLVFKDUJHGRUFUHGLWHGWR WKH
6WDWHPHQWRI3URILWDQG/RVV
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRIWKHUHIRUPDWWHGVXPPDU\VWDWHPHQWV
$QQH[XUH,9
O3URYLVLRQZULWHRIIRIDVVHWV
1RQSHUIRUPLQJORDQVDUHZULWWHQRIISURYLGHGIRUDVSHUHVWLPDWHVRIPDQDJHPHQWVXEMHFWWRWKHPLQLPXPSURYLVLRQUHTXLUHG
DVSHU1RQ%DQNLQJ)LQDQFLDO'HSRVLW$FFHSWLQJRU+ROGLQJ&RPSDQLHV3UXGHQWLDO1RUPV5HVHUYH%DQN'LUHFWLRQV
3URYLVLRQRQVWDQGDUGDVVHWVLVPDGHDVUHTXLUHGXQGHU5HVHUYH%DQNRI,QGLD5%,QRWLILFDWLRQ1R'1%6&*086
GDWHG-DQXDU\
P/RDQV
/RDQVDUHVWDWHGDWWKHDPRXQWDGYDQFHGLQFOXGLQJILQDQFHFKDUJHVDFFUXHGDQGH[SHQVHVUHFRYHUDEOHDVUHGXFHGE\WKHDPRXQWV
UHFHLYHGXSWRWKHGDWHRIEDODQFHVKHHWDQGORDQVVHFXULWLVHG
Q/HDVHV
:KHUHWKH&RPSDQ\LVWKHOHVVRU
$VVHWVJLYHQRQRSHUDWLQJOHDVHVDUHLQFOXGHGLQIL[HGDVVHWV/HDVHLQFRPHLVUHFRJQLVHGLQWKH6WDWHPHQWRI3URILWDQG/RVVRQD
VWUDLJKWOLQHEDVLVRYHUWKHOHDVHWHUP&RVWVLQFOXGLQJGHSUHFLDWLRQDUHUHFRJQLVHGDVDQH[SHQVHLQWKH6WDWHPHQWRI3URILWDQG
/RVV,QLWLDOGLUHFWFRVWVVXFKDVOHJDOFRVWVEURNHUDJHFRVWVHWFDUHUHFRJQLVHGLPPHGLDWHO\LQWKH6WDWHPHQWRI3URILWDQG/RVV
:KHUHWKH&RPSDQ\LVWKHOHVVHH
/HDVHVZKHUHWKHOHVVRUHIIHFWLYHO\UHWDLQVVXEVWDQWLDOO\DOOWKHULVNVDQGEHQHILWVRIRZQHUVKLSRIWKHOHDVHGWHUPDUHFODVVLILHGDV
RSHUDWLQJOHDVHV 2SHUDWLQJOHDVHSD\PHQWVDUH UHFRJQLVHG DVDQH[SHQVHLQWKH 6WDWHPHQWRI3URILWDQG /RVVRQD VWUDLJKWOLQH
EDVLVRYHUWKHOHDVHWHUP
R5HYHQXHUHFRJQLWLRQ
5HYHQXHLVUHFRJQL]HGWRWKHH[WHQWWKDWLWLVSUREDEOHWKDWWKHHFRQRPLFEHQHILWVZLOOIORZWRWKHFRPSDQ\DQGWKHUHYHQXHFDQEH
UHOLDEO\PHDVXUHG7KHUHYHQXHUHRUJDQLVDWLRQDUHDVXQGHU
L,QFRPHIURPILQDQFLQJDFWLYLWLHVLVUHFRJQLVHGRQWKHEDVLVRILQWHUQDOUDWHRIUHWXUQ
LL$GGLWLRQDOILQDQFHFKDUJHVDGGLWLRQDOLQWHUHVWDUHWUHDWHGWRDFFUXHRQUHDOLVDWLRQGXHWRXQFHUWDLQW\RILWVUHDOLVDWLRQ
LLL *DLQ DULVLQJ RQ VHFXULWL]DWLRQGLUHFW DVVLJQPHQW RI DVVHWV LV UHFRJQLVHG RYHU WKH WHQXUH RI DJUHHPHQWV DV SHU JXLGHOLQH RQ
VHFXULWLVDWLRQRIVWDQGDUGDVVHWVLVVXHGE\5%,/RVVRUH[SHQGLWXUHLQUHVSHFWRIVHFXULWLVDWLRQDVVLJQPHQWLIDQ\LVUHFRJQLVHG
XSIURQW
LY 7KH SUXGHQWLDO QRUPV IRU LQFRPH UHFRJQLWLRQ SUHVFULEHG XQGHU 1RQ%DQNLQJ )LQDQFLDO 'HSRVLW $FFHSWLQJ RU +ROGLQJ
&RPSDQLHV3UXGHQWLDO1RUPV5HVHUYH%DQN'LUHFWLRQVDUHIROORZHG
Y,QFRPHIURPVHUYLFHVLVUHFRJQLVHGDVSHUWKHWHUPVRIWKHFRQWUDFWRQDFFUXDOEDVLV
YL ,QWHUHVW ,QFRPH RQ GHSRVLW DFFRXQWV ZLWK EDQNV LV UHFRJQLVHG RQ D WLPH SURSRUWLRQ EDVLV WDNLQJ LQWR DFFRXQW WKH DPRXQW
RXWVWDQGLQJDQGWKHUDWHDSSOLFDEOH
YLL'LYLGHQGLVUHFRJQLVHGDVLQFRPHZKHQULJKWWRUHFHLYHSD\PHQWLVHVWDEOLVKHGE\WKHGDWHRIEDODQFHVKHHW
YLLL3URILWORVVRQVDOHRILQYHVWPHQWVLVUHFRJQLVHGDWWKHWLPHRIDFWXDOVDOHUHGHPSWLRQ
S)RUHLJQFXUUHQF\WUDQVODWLRQ
)RUHLJQFXUUHQF\WUDQVDFWLRQVDQGEDODQFHV
,QLWLDOUHFRJQLWLRQ)RUHLJQFXUUHQF\WUDQVDFWLRQVDUHUHFRUGHGLQ,QGLDQUXSHHE\DSSO\LQJWRWKHIRUHLJQFXUUHQF\DPRXQW WKH
H[FKDQJHUDWHEHWZHHQWKH,QGLDQUXSHHDQGWKHIRUHLJQFXUUHQF\DWWKHGDWHRIWKHWUDQVDFWLRQ
&RQYHUVLRQ )RUHLJQ FXUUHQF\ PRQHWDU\ LWHPV DUH UHWUDQVODWHG WR ,QGLDQ UXSHHV E\ XVLQJ WKH H[FKDQJH UDWH SUHYDLOLQJ DW WKH
%DODQFH6KHHWGDWH
([FKDQJHGLIIHUHQFHV$OOH[FKDQJHGLIIHUHQFHVDUHGHDOWZLWKLQWKH6WDWHPHQWRI3URILWDQG/RVV
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRIWKHUHIRUPDWWHGVXPPDU\VWDWHPHQWV
$QQH[XUH,9
T,QFRPHWD[HV
7D[H[SHQVHFRPSULVHVRIFXUUHQWWD[DQGGHIHUUHGWD[&XUUHQWLQFRPHWD[LVPHDVXUHGDWWKHDPRXQWH[SHFWHGWREHSDLGWRWKH
WD[DXWKRULWLHVLQDFFRUGDQFHZLWKWKH,QGLDQ,QFRPH7D[$FW'HIHUUHGLQFRPHWD[HVUHIOHFWVWKHLPSDFWRIFXUUHQW\HDU
WLPLQJGLIIHUHQFHVEHWZHHQWD[DEOHLQFRPHDQGDFFRXQWLQJLQFRPHIRUWKH\HDUDQGUHYHUVDORIWLPLQJGLIIHUHQFHVRIHDUOLHU\HDUV
'HIHUUHG WD[ LV PHDVXUHG EDVHG RQ WKH WD[ UDWHV DQG WKH WD[ ODZV HQDFWHG RU VXEVWDQWLYHO\ HQDFWHG DW WKH EDODQFH VKHHW GDWH
'HIHUUHG WD[ DVVHWV DUH UHFRJQLVHG RQO\ WR WKH H[WHQW WKHUH LV UHDVRQDEOH FHUWDLQW\ WKDW VXIILFLHQW IXWXUH WD[DEOH LQFRPH ZLOO EH
DYDLODEOHDJDLQVWZKLFKVXFKGHIHUUHGWD[DVVHWVFDQEHUHDOLVHG,QVLWXDWLRQVZKHUHWKH&RPSDQ\KDVXQDEVRUEHGGHSUHFLDWLRQRU
FDUU\IRUZDUGWD[ORVVHVDOOGHIHUUHGWD[DVVHWVDUHUHFRJQLVHGRQO\LIWKHUHLVYLUWXDOFHUWDLQW\VXSSRUWHGE\FRQYLQFLQJHYLGHQFH
WKDWWKH\FDQEHUHDOLVHGDJDLQVWIXWXUHWD[DEOHSURILWV
7KH FDUU\LQJ FRVW RI WKH GHIHUUHG WD[ DVVHWV DUH UHYLHZHG DW HDFK EDODQFH VKHHW GDWH 7KH &RPSDQ\ ZULWHV GRZQ WKH FDUU\LQJ
DPRXQWRIDGHIHUUHGWD[DVVHWWRWKHH[WHQWLWLVQRORQJHUUHDVRQDEO\FHUWDLQRUYLUWXDOO\FHUWDLQDVWKHFDVHPD\EHWKDWVXIILFLHQW
IXWXUHWD[DEOHLQFRPHZLOOEHDYDLODEOHDJDLQVWZKLFKGHIHUUHGWD[DVVHWFDQEHUHDOLVHG$Q\VXFKZULWHGRZQLVUHYHUVHGWRWKH
H[WHQW LW EHFRPHV UHDVRQDEO\ FHUWDLQ RU YLUWXDOO\ FHUWDLQ DV WKH FDVH PD\ EH WKDW VXIILFLHQW IXWXUH WD[DEOH LQFRPH ZLOO EH
DYDLODEOH
7KHXQUHFRJQLVHGGHIHUUHGWD[DVVHWVDUHUHDVVHVVHGE\WKH&RPSDQ\DWHDFKEDODQFHVKHHWGDWHDQGDUHUHFRJQLVHGWRWKHH[WHQW
LWKDVEHFRPHUHDVRQDEO\FHUWDLQRUYLUWXDOO\FHUWDLQDVWKHFDVH PD\EHWKDWVXIILFLHQWIXWXUHWD[DEOHLQFRPH ZLOOEH DYDLODEOH
DJDLQVWZKLFKVXFKGHIHUUHGWD[DVVHWVFDQEHUHDOLVHG
U6HJPHQWUHSRUWLQJ
7KHFRPSDQ\SUHSDUHVLWVVHJPHQWLQIRUPDWLRQLQFRQIRUPLW\ZLWKWKHDFFRXQWLQJSROLFLHVDGRSWHGIRUSUHSDULQJDQGSUHVHQWLQJ
WKHILQDQFLDOVWDWHPHQWVRIWKHFRPSDQ\DVDZKROH7KHVHJPHQWVDUHLGHQWLILHGEDVHGRQWKHQDWXUHRISURGXFWPDUNHWVHUYHG
7KHLQFRPHH[SHQVHVZKLFKDUHQRWDOORFDWHGWRDQ\UHSRUWDEOHVHJPHQWVDUHUHSRUWHGDVXQDOORFDEOHVHJPHQW
V(PSOR\HHVWRFNFRPSHQVDWLRQFRVW
7KH PHDVXUHPHQW DQG GLVFORVXUH RI WKH HPSOR\HH VKDUH EDVHG SD\PHQW SODQV LV GRQH LQ DFFRUGDQFH ZLWK WKH 6(%, (PSOR\HH
6WRFN 2SWLRQ 6FKHPH DQG (PSOR\HH 6WRFN 3XUFKDVH 6FKHPH *XLGHOLQHV DQG WKH *XLGDQFH 1RWH RQ $FFRXQWLQJ IRU
(PSOR\HH6KDUHEDVHG3D\PHQWVLVVXHGE\7KH,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWVRI,QGLD,&$,7KHFRPSDQ\PHDVXUHVFRVW
UHODWLQJWRHPSOR\HHVVWRFNRSWLRQE\LQWULQVLFYDOXHPHWKRG&RPSHQVDWLRQH[SHQVHVLVDPRUWLVHGRQVWUDLJKWOLQHPHWKRGRYHU
WKHSHULRGRIYHVWLQJRIRSWLRQV
W5HWLUHPHQWDQGRWKHUHPSOR\HHEHQHILWV
3URYLGHQW)XQG
$OOWKHHPSOR\HHVRIWKH&RPSDQ\DUHHQWLWOHGWRUHFHLYHEHQHILWVXQGHUWKH3URYLGHQW)XQGDGHILQHGFRQWULEXWLRQSODQLQZKLFK
ERWKWKHHPSOR\HHDQGWKH&RPSDQ\FRQWULEXWHPRQWKO\DWDVWLSXODWHGUDWH7KH&RPSDQ\KDVQROLDELOLW\IRUIXWXUH3URYLGHQW
)XQGEHQHILWVRWKHUWKDQLWVDQQXDOFRQWULEXWLRQDQGUHFRJQLVHVVXFKFRQWULEXWLRQVDVDQH[SHQVHLQWKH\HDULWLVLQFXUUHG
*UDWXLW\
7KH&RPSDQ\SURYLGHVIRUJUDWXLW\DGHILQHG EHQHILWUHWLUHPHQWSODQFRYHULQJDOOHPSOR\HHV7KHSODQSURYLGHVIRUOXPSVXP
SD\PHQWVWRHPSOR\HHVXSRQGHDWKZKLOHLQHPSOR\PHQWRURQVHSDUDWLRQIURPHPSOR\PHQWDIWHUVHUYLQJIRUWKHVWLSXODWHG\HDU
PHQWLRQHGXQGHUµ7KH3D\PHQWRI*UDWXLW\$FW¶7KH&RPSDQ\DFFRXQWVIRUOLDELOLW\RIIXWXUHJUDWXLW\EHQHILWVEDVHGRQ
DQH[WHUQDODFWXDULDOYDOXDWLRQRQSURMHFWHGXQLWFUHGLWPHWKRGFDUULHGRXWIRUDVVHVVLQJOLDELOLW\DVDWWKHUHSRUWLQJGDWH$FWXDULDO
JDLQORVVHVDUHLPPHGLDWHO\WDNHQWR6WDWHPHQWRI3URILWDQG/RVVDQGDUHQRWGHIHUUHG
/HDYH%HQHILWV
$FFXPXODWHGOHDYHZKLFKLVH[SHFWHGWREHXWLOL]HGZLWKLQWKHQH[WWZHOYHPRQWKVLVWUHDWHGDVVKRUWWHUPHPSOR\HHEHQHILW7KH
&RPSDQ\PHDVXUHVWKHH[SHFWHGFRVWRIVXFKDEVHQFHVDVWKH DGGLWLRQDODPRXQWWKDWLWH[SHFWVWRSD\DVDUHVXOWRIWKHXQXVHG
HQWLWOHPHQWWKDWKDVDFFXPXODWHGDWWKHUHSRUWLQJGDWH
7KH&RPSDQ\WUHDWVDFFXPXODWHGOHDYHH[SHFWHGWREHFDUULHGIRUZDUGEH\RQGWZHOYHPRQWKVDVORQJWHUPHPSOR\HHEHQHILWIRU
PHDVXUHPHQW SXUSRVHV 6XFK ORQJWHUP FRPSHQVDWHG DEVHQFHV DUH SURYLGHG IRU EDVHG RQ WKH DFWXDULDO YDOXDWLRQ XVLQJ WKH
SURMHFWHGXQLWFUHGLWPHWKRGDWWKHUHSRUWLQJGDWH$FWXDULDOJDLQVORVVHVDUHLPPHGLDWHO\WDNHQWRWKH6WDWHPHQWRI3URILWDQG/RVV
DQGDUHQRWGHIHUUHG
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRIWKHUHIRUPDWWHGVXPPDU\VWDWHPHQWV
$QQH[XUH,9
X(DUQLQJ3HU6KDUH
%DVLF HDUQLQJ SHU VKDUH LV FDOFXODWHG E\ GLYLGLQJ WKH QHW SURILW RU ORVV IRU WKH \HDU DWWULEXWDEOH WR HTXLW\ VKDUHKROGHUV DIWHU
GHGXFWLQJDWWULEXWDEOHWD[HVE\WKHZHLJKWHGDYHUDJHQXPEHURIHTXLW\VKDUHVRXWVWDQGLQJGXULQJWKH\HDU
)RUWKHSXUSRVHRIFDOFXODWLQJGLOXWHGHDUQLQJVSHUVKDUHWKHQHWSURILWRUORVVIRUWKH\HDUDWWULEXWDEOHWRHTXLW\VKDUHKROGHUVDQG
WKHZHLJKWHGDYHUDJHQXPEHURIVKDUHVRXWVWDQGLQJGXULQJWKHSHULRGDUHDGMXVWHGIRUWKHHIIHFWVRIDOOGLOXWLYHSRWHQWLDOHTXLW\
VKDUHV
Y([SHQVHVRQGHSRVLWVGHEHQWXUHV
([SHQVHVIRUSULYDWHSODFHPHQWRIGHEHQWXUHVVXERUGLQDWHGGHEWVGHSRVLWVDUHFKDUJHGWR6WDWHPHQWRI3URILWDQG/RVVLQWKH\HDU
LQZKLFKWKH\DUHLQFXUUHG
([SHQVHV LQFXUUHG RQ SXEOLF LVVXH RI GHEHQWXUHV RWKHU WKDQ EURNHUDJH DUH FKDUJHG RII RQ VWUDLJKW OLQH EDVLV RYHU WKH ZHLJKWHG
DYHUDJHWHQRURIWKHXQGHUO\LQJGHEHQWXUHV7KHEURNHUDJHLQFXUUHGRQLVVXHRIGHEHQWXUHLVWUHDWHGDV H[SHQGLWXUHLQWKH\HDULQ
ZKLFKLWLVLQFXUUHG
Z3URYLVLRQV
$SURYLVLRQLVUHFRJQLVHGZKHQWKHFRPSDQ\KDVDSUHVHQWREOLJDWLRQDVDUHVXOWRISDVWHYHQW,WLVSUREDEOHWKDWDQRXWIORZRI
UHVRXUFHVZLOOEHUHTXLUHGWRVHWWOHWKHREOLJDWLRQDQGDUHOLDEOHHVWLPDWHFDQEHPDGHRIWKHDPRXQWRIWKHREOLJDWLRQ3URYLVLRQV
DUH QRW GLVFRXQWHG WR WKHLU SUHVHQW YDOXH DQG DUH GHWHUPLQHG EDVHG RQ WKH EHVW HVWLPDWH UHTXLUHG WR VHWWOH WKH REOLJDWLRQ DW WKH
EDODQFHVKHHWGDWH7KHVHDUHUHYLHZHGDWHDFKEDODQFHVKHHWGDWHDQGDGMXVWHGWRUHIOHFWWKHFXUUHQWEHVWHVWLPDWHV
[&DVKDQGFDVKHTXLYDOHQWV
&DVK DQG FDVK HTXLYDOHQWV DUH KHOG IRU WKH SXUSRVH RI PHHWLQJ VKRUWWHUP FDVK FRPPLWPHQWV &DVK HTXLYDOHQWV DUH VKRUW WHUP
KLJKO\OLTXLGLQYHVWPHQWVWKDWDUHUHDGLO\FRQYHUWLEOHLQWRNQRZQDPRXQWVRIFDVKDQGZKLFKDUHVXEMHFWWRDQLQVLJQLILFDQWULVNRI
FKDQJHVLQYDOXH&DVKDQGFDVKHTXLYDOHQWVLQFOXGHFDVKLQKDQGFDVKDWEDQNFKHTXHLQKDQGUHPLWWDQFHVLQWUDQVLWDQGVKRUW
WHUPLQYHVWPHQWVZLWKDQRULJLQDOPDWXULW\SHULRGRIWKUHHPRQWKVRUOHVV
\'HULYDWLYHLQVWUXPHQWV
,QDFFRUGDQFHZLWKWKH,&$,JXLGHOLQHVDQGRQSULQFLSOHRISUXGHQFHGHULYDWLYHFRQWUDFWVRWKHUWKDQIRUHLJQFXUUHQF\IRUZDUG
FRQWUDFWVFRYHUHGXQGHU$6DUHPDUNHGWRPDUNHWRQDSRUWIROLREDVLVDQGWKHQHWORVVLIDQ\DIWHUFRQVLGHULQJWKHRIIVHWWLQJ
HIIHFW RI JDLQ RQ WKH XQGHUO\LQJ KHGJHG LWHP LV FKDUJHG WR WKH 6WDWHPHQW RI 3URILW DQG /RVV +RZHYHU QHW JDLQ LI DQ\ DIWHU
FRQVLGHULQJWKHRIIVHWWLQJHIIHFWRIORVVRQWKHXQGHUO\LQJKHGJHGLWHPLVLJQRUHG
]&RQWLQJHQWOLDELOLWLHV
$FRQWLQJHQWOLDELOLW\LVDSRVVLEOHREOLJDWLRQWKDWDULVHVIURPSDVWHYHQWVZKRVHH[LVWHQFHZLOOEHFRQILUPHGE\WKHRFFXUUHQFHRU
QRQRFFXUUHQFHRIRQHRUPRUHXQFHUWDLQIXWXUHHYHQWVZKLFKDUHEH\RQGWKHFRQWURORIWKHFRPSDQ\$FRQWLQJHQWOLDELOLW\DOVR
LQFOXGHV D SUHVHQW REOLJDWLRQ WKDW LV QRW UHFRJQLVHG EHFDXVH LW LV QRW SUREDEOH WKDW DQ RXWIORZ RI UHVRXUFHV ZLOO EH UHTXLUHG WR
VHWWOH WKH REOLJDWLRQ $ FRQWLQJHQW OLDELOLW\ DOVR DULVHV ZKHUH D OLDELOLW\ FDQQRW EH PHDVXUHG UHOLDEO\ 7KH FRPSDQ\ GRHV QRW
UHFRJQLVHDFRQWLQJHQWOLDELOLW\LQWKHDFFRXQWVEXWGLVFORVHVLWVH[LVWHQFHLQWKHILQDQFLDOVWDWHPHQWV
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH,9
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
6KDUHFDSLWDO
3DUWLFXODUV
$XWKRULVHG
(TXLW\VKDUHFDSLWDO
&XPXODWLYHUHGHHPDEOHSUHIHUHQFHVKDUH
FDSLWDO
1XPEHURIHTXLW\VKDUHVRI`HDFK
1XPEHURI&XPXODWLYHUHGHHPDEOH
SUHIHUHQFHVKDUHVRI` HDFK
,VVXHGVXEVFULEHGDQGIXOO\SDLGXS
(TXLW\VKDUHFDSLWDO
1XPEHURIHTXLW\VKDUHVRI` HDFK
7RWDO,VVXHGVXEVFULEHGDQGIXOO\SDLGXS
VKDUHFDSLWDO
` LQODFV
$VDW0DUFK
1HFHVVDU\UHWXUQVIRULQFUHDVHLQDXWKRULVHGHTXLW\FDSLWDOIRUWKH\HDUHQGHGRQ0DUFKDQG0DUFKZHUH
ILOHGZLWK5HJLVWUDURIFRPSDQLHV&KHQQDLRQ$SULODQG0D\UHVSHFWLYHO\
5HFRQFLOLDWLRQRIWKHVKDUHVRXWVWDQGLQJDWWKHEHJLQQLQJDQGDWWKHHQGRIWKHUHSRUWLQJSHULRG
(TXLW\VKDUHV
3DUWLFXODUV
$VDW0DUFK
1XPEHURIVKDUHVDWWKHEHJLQQLQJRIWKH\HDU
$VDW0DUFK
1XPEHURIVKDUHVLVVXHGGXULQJWKH\HDU
1XPEHURIVKDUHVUHGHHPHGGXULQJWKH\HDU
1XPEHURIVKDUHVDWWKHHQGRIWKH\HDU
1XPEHURIVKDUHVRXWVWDQGLQJDWWKH
EHJLQQLQJRIWKH\HDU
1XPEHUVKDUHVLVVXHGGXULQJWKH\HDU(623
1XPEHUVKDUHVLVVXHGGXULQJWKH\HDU
3UHIHUHQWLDOLVVXH
1XPEHUVKDUHVLVVXHGGXULQJWKH\HDU
:DUUDQWFRQYHUVLRQ
1XPEHURIVKDUHVRXWVWDQGLQJDWWKHHQGRI
WKH\HDU
3UHIHUHQFHVKDUHV
3DUWLFXODUV
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH,9
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
(TXLW\VKDUHFDSLWDO
3DUWLFXODUV
6KDUHFDSLWDORXWVWDQGLQJDWWKHEHJLQQLQJRI
WKH\HDU
,VVXHGGXULQJWKH\HDU(623
3UHIHUHQFHVKDUHFDSLWDO
3DUWLFXODUV
6KDUHFDSLWDORXWVWDQGLQJDWWKHEHJLQQLQJRI
WKH\HDU
,VVXHGGXULQJWKH\HDU
5HGHHPHGGXULQJWKH\HDU
6KDUHFDSLWDORXWVWDQGLQJDWWKHHQGRIWKH
\HDU
` LQODFV
$VDW0DUFK
,VVXHGGXULQJWKH\HDU3UHIHUHQWLDOLVVXH
,VVXHGGXULQJWKH\HDU:DUUDQWFRQYHUVLRQ
6KDUHFDSLWDORXWVWDQGLQJDWWKHHQGRIWKH
\HDU
` LQODFV
$VDW0DUFK
7HUPVULJKWVDWWDFKHGWRHTXLW\VKDUHV
7KHFRPSDQ\KDVRQO\RQHFODVVRIHTXLW\VKDUHKDYLQJDSDUYDOXHRI` SHUVKDUH(DFKKROGHURIWKHHTXLW\VKDUHLVHQWLWOHG
WRRQHYRWHSHUVKDUH7KHFRPSDQ\GHFODUHVDQGSD\VGLYLGHQGVLQ,QGLDQUXSHHV7KHGLYLGHQGSURSRVHGE\WKH%RDUGRI
'LUHFWRUVLVVXEMHFWWRDSSURYDORIWKHVKDUHKROGHUVLQWKHUHVSHFWLYH$QQXDO*HQHUDO0HHWLQJ
7KHGLYLGHQGSHUHTXLW\VKDUHLQFOXGLQJLQWHULPGLYLGHQGUHFRJQLVHGDVGLVWULEXWLRQWRHTXLW\VKDUHKROGHUVLVDVXQGHU
'LYLGHQG
(TXLW\VKDUHRI`HDFKLQ`)
$VDW0DUFK
,QWKHHYHQWRIOLTXLGDWLRQRIWKHFRPSDQ\WKHKROGHUVRIHTXLW\VKDUHVZLOOEHHQWLWOHGWRUHFHLYHUHPDLQLQJDVVHWVRIWKH
FRPSDQ\DIWHUGLVWULEXWLRQRIDOOSUHIHUHQWLDODPRXQWV7KHGLVWULEXWLRQZLOOEHLQSURSRUWLRQWRWKHQXPEHURIHTXLW\VKDUHVKHOG
E\WKHVKDUHKROGHUV
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH,9
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
'HWDLOVRIVKDUHKROGHUVKROGLQJPRUHWKDQVKDUHVLQWKHFRPSDQ\
1DPHRIWKHVKDUHKROGHUV
(TXLW\VKDUHRI``HDFKIXOO\SDLG
6KULUDP(QWHUSULVH+ROGLQJ3YW/WG
$VDW0DUFK
1RRI6KDUHVKHOG
RIKROGLQJLQWKHFODVV
1RRI6KDUHVKHOG
RIKROGLQJLQWKHFODVV
1RRI6KDUHVKHOG
RIKROGLQJLQWKHFODVV
1RRI6KDUHVKHOG
RIKROGLQJLQWKHFODVV
6KULUDP&DSLWDO/WG
1RRI6KDUHVKHOG
RIKROGLQJLQWKHFODVV
6KULUDP5HWDLO+ROGLQJ3YW/WG
1RRI6KDUHVKHOG
RIKROGLQJLQWKHFODVV
9DQ*RJK/WG
,QGRSDUN+ROGLQJV/WG
1RUZHVW9HQWXUH3DUWQHUV;),,0DXULWLXV
1RRI6KDUHVKHOG
RIKROGLQJLQWKHFODVV
,'%,7UXVWHHVKLS6HUYLFHV/WG
1RRI6KDUHVKHOG
RIKROGLQJLQWKHFODVV
%HVVHPHU9HQWXUH3DUWQHUV7UXVW
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH,9
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
6KDUHVUHVHUYHGIRULVVXHXQGHURSWLRQ
L)RUGHWDLORIVKDUHUHVHUYHGIRULVVXHXQGHUWKHHPSOR\HHVVWRFNRSWLRQVFKHPH(623>5HIHUQRWH@
LL3UHIHUHQWLDOLVVXHRIVKDUHZDUUDQWV
'XULQJWKH\HDUHQGHG0DUZDUUDQWVZHUHLVVXHGDOORWWHGWR6KULUDP&DSLWDO/LPLWHGFRQIHUULQJDQRSWLRQWRWKHKROGHU
WRVXEVFULEHWRRQHHTXLW\VKDUHSHUZDUUDQWZLWKLQDSHULRGRIPRQWKVIURPWKHGDWHRIDOORWPHQW'XULQJWKH\HDUHQGHG
0DUFKZDUUDQWVZHUHLVVXHGDOORWWHGWR$VLDEULGJH)XQG,//&%HVVHPHU9HQWXUH3DUWQHUV7UXVW
,'%,7UXVWHHVKLS6HUYLFHV/WG9DQ*RJK/LPLWHGDQG6KULUDP5HWDLO+ROGLQJV3YW/WG
FRQIHUULQJDQRSWLRQWRWKHKROGHUWRVXEVFULEHWRRQHHTXLW\VKDUHSHUZDUUDQWZLWKLQDSHULRGRIPRQWKV
PRQWKVIRU6KULUDP5HWDLO+ROGLQJV3YW/WGIURPWKHGDWHRIDOORWPHQW
$VDW0DUFK
3DUWLFXODUV
1RRIZDUUDQWVLVVXHG
6XEVFULSWLRQSULFHSHUZDUUDQW`
6XEVFULSWLRQ$PRXQW`LQODFV
(TXLW\6KDUHVDOORWWHGRQH[HUFLVHRIRSWLRQV
([HUFLVH3ULFH`
$PRXQWUHFHLYHGRQH[HUFLVLQJWKHRSWLRQWR
FRQYHUWLQWRHTXLW\VKDUHV`LQODFV
2XWRIZDUUDQWVLVVXHGGXULQJWKH\HDUHQGHGRQ0DUFKRSWLRQVZHUHH[HUFLVHGIRUFRQYHUVLRQ
LQWRHTXLW\VKDUHV7KHEDODQFHZDUUDQWVZHUHQRWH[HUFLVHGIRUFRQYHUVLRQLQWRVKDUHVDQGWKH\ODSVHG7KHDPRXQW
UHFHLYHGIRUVXEVFULELQJWRZDUUDQWVDWDVXEVFULSWLRQSULFHRI` SHUZDUUDQWDPRXQWLQJWR`ODFVFUHGLWHGWR
FDSLWDOUHVHUYH
'XULQJWKH)<ZDUUDQWVKDYHEHHQFRQYHUWHGWRHTXLW\VKDUHVRXWRIWKHWRWDOZDUUDQWV
7KHFRPSDQ\LVVXHGHTXLW\VKDUHVGXULQJWKHSHULRGRIILYH\HDUVLPPHGLDWHO\SUHFHGLQJWKHUHSRUWLQJGDWHRQ
H[HUFLVHRIRSWLRQVJUDQWHGXQGHU(623ZKHUHLQDSDUWRIWKHFRQVLGHUDWLRQZDVUHFHLYHGLQIRUPRIHPSOR\HHVHUYLFH
3UHIHUHQWLDO$OORWPHQWRIHTXLW\6KDUHV
'XULQJWKH\HDUHQGHGRQ0DUFKHTXLW\VKDUHVRIWKHFRPSDQ\ZHUHLVVXHGDOORWWHGWR6KULUDP&DSLWDO
/LPLWHGIRUFDVKDWDVXEVFULSWLRQSULFHRI`SHUHTXLW\VKDUHLQFOXGHVDSUHPLXPRI`SHUHTXLW\VKDUH'XULQJWKH
\HDUHQGHG0DUFKHTXLW\VKDUHVZHUHLVVXHGDOORWWHGWRWR$VLDEULGJH)XQG,//&%HVVHPHU9HQWXUH
3DUWQHUV7UXVW,'%,7UXVWHHVKLS6HUYLFHV/WG9DQ*RJK/LPLWHGIRUFDVKRQSUHIHUHQWLDO
EDVLVDWWKHUDWHRI`SHUVKDUHLQFOXGHVDSUHPLXPRI`SHUVKDUH
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
$QQH[XUH,9
5HVHUYHVVXUSOXV
` LQODFV
$VDW0DUFK
3DUWLFXODUV
6WDWXWRU\UHVHUYHSXUVXDQWWRVHFWLRQ
,&RIWKH5%,DFW
2SHQLQJEDODQFH
$GGWUDQVIHUIURPVWDWHPHQWRISURILWORVV
&ORVLQJEDODQFH
*HQHUDOUHVHUYH
2SHQLQJEDODQFH
$GGWUDQVIHUIURPVWDWHPHQWRISURILWORVV
&ORVLQJEDODQFH
&DSLWDOUHVHUYHV
2SHQLQJEDODQFH
$GGIRUIHLWXUHRIRSWLRQDOO\FRQYHUWLEOH
ZDUUDQWV
&ORVLQJEDODQFH
&DSLWDOUHGHPSWLRQUHVHUYH
2SHQLQJEDODQFH
$GGWUDQVIHUIURPVWDWHPHQWRISURILWORVV
&ORVLQJEDODQFH
6HFXULWLHVSUHPLXP
2SHQLQJEDODQFH
$GGVHFXULWLHVSUHPLXPFUHGLWHGGXULQJWKH
\HDU
&ORVLQJEDODQFH
'HEHQWXUHUHGHPSWLRQUHVHUYH
2SHQLQJEDODQFH
$GGWUDQVIHUIURPVWDWHPHQWRISURILWORVV
&ORVLQJEDODQFH
6WRFNRSWLRQVRXWVWDQGLQJ
(PSOR\HHVWRFNRSWLRQRXWVWDQGLQJ
/HVVWUDQVIHUWRGHIHUUHGHPSOR\HH
FRPSHQVDWLRQRXWVWDQGLQJ
&ORVLQJEDODQFH
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
$QQH[XUH,9
5HVHUYHVVXUSOXV
3DUWLFXODUV
6XUSOXVLQWKHVWDWHPHQWRISURILWORVV
2SHQLQJEDODQFH
$GGQHWSURILWIRUWKH\HDU
/HVV$SSURSULDWLRQV
,QWHULPGLYLGHQG(TXLW\
,QWHULPGLYLGHQGFXPXODWLYHUHGHHPDEOH
SUHIHUHQFHVKDUH
7D[RQLQWHULPGLYLGHQG
3URSRVHGILQDOHTXLW\GLYLGHQG
3URSRVHGILQDOSUHIHUHQFHGLYLGHQG
7D[RQSURSRVHGGLYLGHQG
7UDQVIHUWRVWDWXWRU\UHVHUYHVSXUVXDQWWR
VHFWLRQ,&RIWKH5%,DFW
7UDQVIHUWRJHQHUDOUHVHUYH
7UDQVIHUWRFDSLWDOUHGHPSWLRQUHVHUYH
7UDQVIHUWRGHEHQWXUHUHGHPSWLRQUHVHUYH
1HWVXUSOXVLQWKHVWDWHPHQWRISURILWORVV
7RWDO
` LQODFV
$VDW0DUFK
/RQJWHUPERUURZLQJV
` LQODFV
3DUWLFXODUV
6HFXUHG
3ULYDWHO\SODFHGUHGHHPDEOHQRQFRQYHUWLEOH
GHEHQWXUHV5HWDLO>5HIHUQRWH$L@
3ULYDWHO\SODFHGUHGHHPDEOHQRQFRQYHUWLEOH
GHEHQWXUHV,QVWLWXWLRQDO>5HIHUQRWH
$LLDEF@
3XEOLFLVVXHRIUHGHHPDEOHQRQFRQYHUWLEOH
GHEHQWXUHV>5HIHUQRWH$LLL@
7HUPORDQIURPEDQNV>5HIHUQRWH%L@
7HUPORDQIURPILQDQFLDOLQVWLWXWLRQV>5HIHU
%LL@
7RWDOVHFXUHGORQJWHUPERUURZLQJ
8QVHFXUHG
)L[HGGHSRVLWV5HIHUQRWH$
6XERUGLQDWHGGHEWV5HIHUQRWH%LLL
7RWDOXQVHFXUHGORQJWHUPERUURZLQJ
7RWDO
1RQFXUUHQWSRUWLRQ
$VDW0DUFK
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH,9
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
` LQODFV
&XUUHQWPDWXULWLHV
3DUWLFXODUV
$VDW0DUFK
6HFXUHG
3ULYDWHO\SODFHGUHGHHPDEOHQRQ
FRQYHUWLEOHGHEHQWXUHV5HWDLO>5HIHUQRWH
$L@
3ULYDWHO\UHGHHPDEOHSODFHGQRQ
FRQYHUWLEOHGHEHQWXUHV,QVWLWXWLRQDO
>5HIHUQRWH$LLDEF@
7HUPORDQIURPEDQNV>5HIHUQRWH
%L@
7HUPORDQIURPILQDQFLDOLQVWLWXWLRQV
>5HIHU%LL@
7RWDOVHFXUHGORQJWHUPERUURZLQJ
8QVHFXUHG
)L[HGGHSRVLWV5HIHUQRWH$
6XERUGLQDWHGGHEWV5HIHUQRWH
%LLL
7RWDOXQVHFXUHGORQJWHUPERUURZLQJ
$PRXQWGLVFORVHGXQGHUWKHKHDGRWKHU
FXUUHQWOLDELOLWLHV>5HIHUQRWH@
7RWDO
6HFXUHGORDQV/RQJWHUPERUURZLQJV
$6HFXUHGUHGHHPDEOHQRQFRQYHUWLEOHGHEHQWXUH
L3ULYDWHO\SODFHGVHFXUHGUHGHHPDEOHQRQFRQYHUWLEOHGHEHQWXUHVRI1&'V`
`HDFK8QTXRWHG5HWDLO
7HUPVRIUHSD\PHQWDVDW0DUFK
` LQODFV
! 5DWHRILQWHUHVW
! PRQWKV
PRQWKV
PRQWKV
PRQWKV
7RWDOQRQFXUUHQWSRUWLRQ
PRQWKV
7RWDOFXUUHQWPDWXULWLHV
5HGHHPDEOHDWSDUZLWKLQ
2YHUPRQWKV
*UDQG7RWDO
)
! 7RWDO
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH,9
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
7HUPVRIUHSD\PHQWDVDW0DUFK
5HGHHPDEOHDWSDUZLWKLQ
` LQODFV
2YHUPRQWKV
! 5DWHRILQWHUHVW
! ! 7RWDO
PRQWKV
PRQWKV
PRQWKV
PRQWKV
7RWDOQRQFXUUHQWSRUWLRQ
PRQWKV
7RWDOFXUUHQWPDWXULWLHV
*UDQG7RWDO
7HUPVRIUHSD\PHQWDVDW0DUFK
` LQODFV
! 5DWHRILQWHUHVW
! ! PRQWKV
PRQWKV
PRQWKV
PRQWKV
7RWDOQRQFXUUHQWSRUWLRQ
PRQWKV
7RWDOFXUUHQWPDWXULWLHV
*UDQG7RWDO
5HGHHPDEOHDWSDUZLWKLQ
2YHUPRQWKV
7RWDO
7HUPVRIUHSD\PHQWDVDW0DUFK
` LQODFV
5HGHHPDEOHDWSDUZLWKLQ
! 2YHUPRQWKV
5DWHRILQWHUHVW
! ! 7RWDO
PRQWKV
PRQWKV
PRQWKV
PRQWKV
7RWDOQRQFXUUHQWSRUWLRQ
PRQWKV
7RWDOFXUUHQWPDWXULWLHV
*UDQG7RWDO
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH,9
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
7HUPVRIUHSD\PHQWDVDW0DUFK
` LQODFV
5HGHHPDEOHDWSDUZLWKLQ
2YHUPRQWKV
! 5DWHRILQWHUHVW
! ! 7RWDO
PRQWKV
PRQWKV
PRQWKV
PRQWKV
7RWDOQRQFXUUHQWSRUWLRQ
PRQWKV
7RWDOFXUUHQWPDWXULWLHV
*UDQG7RWDO
1DWXUHRIVHFXULW\
7KHUHGHPSWLRQRISULQFLSDODPRXQWRIVHFXUHGUHGHHPDEOHQRQFRQYHUWLEOHGHEHQWXUHVZLWKDOOLQWHUHVWWKHUHRQDUHVHFXUHGE\D
OHJDOPRUWJDJHRQWKHVSHFLILHGLPPRYDEOHSURSHUW\DQGE\ZD\RIFKDUJHRQWKHFRPSDQ\
VVSHFLILFDOO\LGHQWLILHGPRYDEOHDVVHWV
VXFKDVERRNGHEWVORDQUHFHLYDEOHVLQIDYRXURIWKH7UXVWHHVDSSRLQWHG
7KHVHVHFXUHGUHGHHPDEOHQRQFRQYHUWLEOHGHEHQWXUHVDUHUHGHHPDEOHDWSDURYHUDSHULRGRIPRQWKVWRPRQWKVIURPWKH
GDWHRIDOORWPHQWGHSHQGLQJRQWKHWHUPVRIWKHDJUHHPHQW
6HFXUHGUHGHHPDEOHQRQFRQYHUWLEOHGHEHQWXUHVPD\EHERXJKWEDFNVXEMHFWWRDSSOLFDEOHVWDWXWRU\DQGRUUHJXODWRU\
UHTXLUHPHQWVXSRQWKHWHUPVDQGFRQGLWLRQVDVPD\EHGHFLGHGE\WKHFRPSDQ\7KHFRPSDQ\PD\JUDQWORDQDJDLQVWWKHVHFXULW\
RI61&'VXSRQWKHWHUPVDQGFRQGLWLRQVDVPD\EHGHFLGHGE\WKHFRPSDQ\DQGVXEMHFWWRDSSOLFDEOHVWDWXWRU\DQGRUUHJXODWRU\
UHTXLUHPHQWV
LL3ULYDWHO\SODFHGUHGHHPDEOHQRQFRQYHUWLEOHGHEHQWXUH,QVWLWXWLRQDO
D3ULYDWHO\SODFHGUHGHHPDEOHQRQFRQYHUWLEOHGHEHQWXUH1&'VRI``HDFKTXRWHG
7HUPVRIUHSD\PHQW
` LQODFV
/RQJWHUPERUURZLQJ
5DWHRILQWHUHVW
7RWDO
$VDW0DUFK
5HGHHPDEOHDW
SDURQ
6HS
$SU
0DU
2FW
6HS
$SU
0DU
)
2FW
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH,9
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
` LQODFV
&XUUHQWPDWXULWLHV
5DWHRI,QWHUHVW
$VDW0DUFK
5HGHHPDEOHDW
SDURQ
0DU
2FW
6HS
$SU
0DU
7RWDO
E3ULYDWHO\3ODFHG5HGHHPDEOH1RQ&RQYHUWLEOH'HEHQWXUH1&'VRI`
`HDFKTXRWHG
7HUPVRIUHSD\PHQW
/RQJWHUPERUURZLQJ
` LQODFV
5DWHRI,QWHUHVW
$VDW0DUFK
5HGHHPDEOHDW
SDURQ
'HF
'HF
-XO
-XO
0DU
)HE
1RY
0D\
)HE
'HF
-XQ
)HE
-DQ
2FW
$XJ
0D\
$SU
$SU
-DQ
$SU
2FW
$SU
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH,9
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
&XUUHQWPDWXULWLHV
` LQODFV
5DWHRI,QWHUHVW
$VDW0DUFK
5HGHHPDEOHDW
SDURQ
)HE
-DQ
2FW
$XJ
-XO
-XO
0D\
$SU
$SU
$SU
-DQ
2FW
$SU
2FW
$SU
F3ULYDWHO\SODFHGUHGHHPDEOHQRQFRQYHUWLEOHGHEHQWXUH1&'VRI``HDFK±TXRWHG
7HUPVRIUHSD\PHQW
` LQODFV
&XUUHQWPDWXULWLHV
5DWHRI,QWHUHVW
7RWDO
$VDW0DUFK
5HGHHPDEOHDW
SDURQ
$SU
1DWXUHRIVHFXULW\
7KHUHGHPSWLRQRISULQFLSDODPRXQWRIVHFXUHGUHGHHPDEOHQRQFRQYHUWLEOHGHEHQWXUHVZLWKDOOLQWHUHVWWKHUHRQDUHVHFXUHGE\D
OHJDOPRUWJDJHRQWKHVSHFLILHGLPPRYDEOHSURSHUW\DQGE\ZD\RIFKDUJHRQWKHFRPSDQ\
VVSHFLILFDOO\LGHQWLILHGPRYDEOHDVVHWV
VXFKDVERRNGHEWVORDQUHFHLYDEOHVLQIDYRXURIWKH7UXVWHHVDSSRLQWHG
6HFXUHGUHGHHPDEOHQRQFRQYHUWLEOHGHEHQWXUHPD\EHERXJKWEDFNVXEMHFWWRDSSOLFDEOHVWDWXWRU\DQGRUUHJXODWRU\
UHTXLUHPHQWVXSRQWKHWHUPVDQGFRQGLWLRQVDVPD\EHGHFLGHGE\WKHFRPSDQ\
)
$QQH[XUH,9
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
LLL3XEOLFLVVXHRIVHFXUHGUHGHHPDEOHQRQFRQYHUWLEOHGHEHQWXUHV1&'VRI`
`HDFKTXRWHG
D,VVXHGLQ
` LQODFV
2SWLRQ'HWDLO
2SWLRQ,
2SWLRQ,,
5DWHRI
,QWHUHVW
$VDW0DUFK
5HGHHPDEOHDW
SDURQ
$VDW0DUFK
3XWDQGFDOORSWLRQ
$XJ
$XJ
$XJ
$XJ
$XJ
$XJ
$XJ
$XJ
$XJ
E,VVXHGLQ
` LQODFV
2SWLRQ'HWDLO
2SWLRQ,
2SWLRQ,,
5DWHRI
,QWHUHVW
$VDW0DUFK
5HGHHPDEOH
DWSDURQ
3XWDQGFDOO
RSWLRQ
2FW
2FW
2FW
2FW
1DWXUHRIVHFXULW\
7KHUHSD\PHQWRIVHFXUHGUHGHHPDEOHQRQFRQYHUWLEOHGHEHQWXUHVRI`HDFKDWIDFHYDOXHRQPDWXULW\WRJHWKHUZLWKLQWHUHVW
WKHUHRQDUHVHFXUHGE\PRUWJDJHRILPPRYDEOHSURSHUW\DQGE\ZD\RIFKDUJHRQWKHFRPSDQ\
VVSHFLILFDOO\LGHQWLILHGPRYDEOH
DVVHWVVXFKDVERRNGHEWVORDQUHFHLYDEOHVLQIDYRXURIWKH7UXVWHHVDSSRLQWHG
6HFXUHGUHGHHPDEOHQRQFRQYHUWLEOHGHEHQWXUHPD\EHERXJKWEDFNVXEMHFWWRDSSOLFDEOHVWDWXWRU\DQGRUUHJXODWRU\
UHTXLUHPHQWVXSRQWKHWHUPVDQGFRQGLWLRQVDVPD\EHGHFLGHGE\WKHFRPSDQ\
)
$QQH[XUH,9
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
%7HUPORDQ
L7HUPORDQIURPEDQN
7HUPVRIUHSD\PHQWDVDW0DUFK
7HQRU
5DWHRILQWHUHVW
PRQWKV
WR
PRQWKV
WR
PRQWKV
WR
8SWRPRQWKV
WR
*UDQG7RWDO
5HSD\PHQW'HWDLOV
WRLQVWDOPHQWVRIEXOOHWKDOI\HDUO\DQG
\HDUO\IUHTXHQF\
WRLQVWDOPHQWVRIEXOOHWTXDUWHUO\
IUHTXHQF\
WRLQVWDOPHQWVRIEXOOHWPRQWKO\
TXDUWHUO\DQGKDOI\HDUO\IUHTXHQF\
WRLQVWDOPHQWVRIEXOOHW4XDUWHUO\KDOI
\HDUO\IUHTXHQF\
1RQ&XUUHQW
SRUWLRQ
` LQODFV
&XUUHQW
0DWXULWLHV
1RQ&XUUHQW
SRUWLRQ
` LQODFV
&XUUHQW
0DWXULWLHV
7HUPVRIUHSD\PHQWDVDW0DUFK
7HQRU
5DWHRILQWHUHVW
PRQWKV
WR
PRQWKV
WR
PRQWKV
WR
8SWRPRQWKV
WR
*UDQG7RWDO
5HSD\PHQW'HWDLOV
WRLQVWDOPHQWVRIEXOOHWKDOI\HDUO\DQG
\HDUO\IUHTXHQF\
WRLQVWDOPHQWVRIEXOOHWTXDUWHUO\
IUHTXHQF\
WRLQVWDOPHQWVRIEXOOHWPRQWKO\
TXDUWHUO\DQGKDOI\HDUO\IUHTXHQF\
WRLQVWDOPHQWVRIEXOOHW4XDUWHUO\KDOI
\HDUO\IUHTXHQF\
7HUPVRIUHSD\PHQWDVDW0DUFK
` LQODFV
7HQRU
5DWHRILQWHUHVW
PRQWKV
PRQWKV
WR
PRQWKV
WR
8SWRPRQWKV
WR
*UDQG7RWDO
5HSD\P
HQW
'HWDLOV
WRLQVWDOPHQWVRITXDUWHUO\IUHTXHQF\
WRLQVWDOPHQWVRIEXOOHWPRQWKO\
TXDUWHUO\KDOI\HDUO\DQG\HDUO\IUHTXHQF\
WRLQVWDOPHQWVRIEXOOHW4XDUWHUO\KDOI
\HDUO\IUHTXHQF\
WRLQVWDOPHQWVRIEXOOHW4XDUWHUO\KDOI
\HDUO\IUHTXHQF\
)
1RQ&XUUHQW
SRUWLRQ
&XUUHQW
0DWXULWLHV
$QQH[XUH,9
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
7HUPVRIUHSD\PHQWDVDW0DUFK
7HQRU
5DWHRILQWHUHVW
PRQWKV
WR
PRQWKV
WR
8SWRPRQWKV
WR
7RWDO
5HSD\PHQW'HWDLOV
WRLQVWDOPHQWVRIEXOOHWPRQWKO\
TXDUWHUO\IUHTXHQF\
WRLQVWDOPHQWVRIEXOOHWPRQWKO\
TXDUWHUO\KDOI\HDUO\DQG\HDUO\IUHTXHQF\
WRLQVWDOPHQWVRIEXOOHWPRQWKO\
4XDUWHUO\IUHTXHQF\
1RQ&XUUHQW
SRUWLRQ
` LQODFV
&XUUHQW
0DWXULWLHV
7HUPVRIUHSD\PHQWDVDW0DUFK
` LQODFV
7HQRU
$ERYHPRQWKV
PRQWKV
PRQWKV
5DWHRILQWHUHVW
5HSD\PHQW'HWDLOV
WR
WR
WR
WRLQVWDOPHQWVRITXDUWHUO\KDOI\HDUO\
DQGIUHTXHQF\
WRLQVWDOPHQWVRIPRQWKO\TXDUWHUO\
KDOI\HDUO\DQGIUHTXHQF\
WRLQVWDOPHQWVRIEXOOHWPRQWKO\
4XDUWHUO\KDOI\HDUO\IUHTXHQF\
WRLQVWDOPHQWVRIEXOOHWPRQWKO\
4XDUWHUO\KDOI\HDUO\IUHTXHQF\
8SWRPRQWKV
WR
7RWDO
1RQ&XUUHQW
SRUWLRQ
&XUUHQW
0DWXULWLHV
1DWXUHRI6HFXULW\
7HUP/RDQVIURPEDQNVDUHVHFXUHGE\DQH[FOXVLYHFKDUJHE\ZD\RIK\SRWKHFDWLRQRIVSHFLILFDVVHWVXQGHUILQDQFLQJ
LL7HUPORDQIURP,QVWLWXWLRQV
7HUPVRIUHSD\PHQWDVDW0DUFK
7HQRU
5DWHRILQWHUHVW
5HSD\PHQW'HWDLOV
PRQWKV
WRLQVWDOPHQWVRI\HDUO\IUHTXHQF\
PRQWKV
%XOOHWSD\PHQWRQ0DWXULW\
7RWDO
1RQ&XUUHQW
SRUWLRQ
` LQODFV
&XUUHQW
0DWXULWLHV
7HUPVRIUHSD\PHQWDVDW0DUFK
` LQODFV
7HQRU
5DWHRILQWHUHVW
5HSD\PHQW'HWDLOV
PRQWKV
$QQXDODQGKDOI\HDUO\LQVWDOPHQWV
PRQWKV
%XOOHWUHSD\PHQW
7RWDO
)
1RQ&XUUHQW
SRUWLRQ
&XUUHQW
0DWXULWLHV
$QQH[XUH,9
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
7HUPVRIUHSD\PHQWDVDW0DUFK
` LQODFV
7HQRU
5DWHRILQWHUHVW
5HSD\PHQW'HWDLOV
PRQWKV
%XOOHWUHSD\PHQW
7RWDO
1RQ&XUUHQW
SRUWLRQ
&XUUHQW
0DWXULWLHV
7HUPVRIUHSD\PHQWDVDW0DUFK
` LQODFV
1RQ&XUUHQW
SRUWLRQ
&XUUHQW
0DWXULWLHV
WRPRQWKO\LQVWDOPHQWV
7HQRU
5DWHRILQWHUHVW
5HSD\PHQW'HWDLOV 8SWRPRQWKV
7RWDO
7HUPVRIUHSD\PHQWDVDW0DUFK
` LQODFV
1RQ&XUUHQW
SRUWLRQ
&XUUHQW
0DWXULWLHV
WRTXDUWHUO\LQVWDOPHQWV
WRPRQWKO\LQVWDOPHQWV
8SWRPRQWKV
WR
WREXOOHWPRQWKO\LQVWDOPHQWV
7RWDO
7HQRU
5DWHRILQWHUHVW
5HSD\PHQW'HWDLOV
PRQWKV
PRQWKV
1DWXUHRIVHFXULW\
7HUP/RDQVIURPLQVWLWXWLRQVDUHVHFXUHGE\DQH[FOXVLYHFKDUJHE\ZD\RIK\SRWKHFDWLRQRIVSHFLILFDVVHWVXQGHUILQDQFLQJ
8QVHFXUHGORDQ/RQJWHUPERUURZLQJV
$)L[HGGHSRVLWVRI`
`HDFK±XQTXRWHG
7HUPVRIUHSD\PHQWDVDW0DUFK
` LQODFV
5DWHRILQWHUHVW
5HGHHPDEOHDWSDUZLWKLQ
! ! PRQWKV
! PRQWKV
7RWDOQRQFXUUHQWSRUWLRQ
PRQWKV
! 7RWDO
7RWDOFXUUHQWPDWXULWLHV
*UDQG7RWDO
)
$QQH[XUH,9
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
7HUPVRIUHSD\PHQWDVDW0DUFK
` LQODFV
5HGHHPDEOHDWSDUZLWKLQ
! 5DWHRILQWHUHVW
! ! ! 7RWDO
PRQWKV
PRQWKV
PRQWKV
PRQWKV
7RWDOQRQFXUUHQWSRUWLRQ
PRQWKV
7RWDOFXUUHQWPDWXULWLHV
*UDQG7RWDO
7HUPVRIUHSD\PHQWDVDW0DUFK
` LQODFV
5HGHHPDEOHDWSDUZLWKLQ
! 5DWHRILQWHUHVW
! ! ! 7RWDO
PRQWKV
PRQWKV
PRQWKV
7RWDOQRQFXUUHQWSRUWLRQ
PRQWKV
7RWDOFXUUHQWPDWXULWLHV
*UDQG7RWDO
7HUPVRIUHSD\PHQWDVDW0DUFK
` LQODFV
5HGHHPDEOHDWSDUZLWKLQ
5DWHRILQWHUHVW
! ! ! ! 7RWDO
PRQWKV
PRQWKV
PRQWKV
7RWDOQRQFXUUHQWSRUWLRQ
PRQWKV
7RWDOFXUUHQWPDWXULWLHV
*UDQG7RWDO
PRQWKV
)
$QQH[XUH,9
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
7HUPVRIUHSD\PHQWDVDW0DUFK
` LQODFV
5HGHHPDEOHDWSDUZLWKLQ
5DWHRILQWHUHVW
! ! ! PRQWKV
7RWDOFXUUHQWPDWXULWLHV
*UDQG7RWDO
PRQWKV
PRQWKV
PRQWKV
PRQWKV
7RWDOQRQFXUUHQWSRUWLRQ
! 7RWDO
%3ULYDWHO\SODFHGVXERUGLQDWHGGHEWV
7KHFRPSDQ\KDVLVVXHGVXERUGLQDWHGGHEWERQGVZLWKFRXSRQUDWHRIWRSHUDQQXPZKLFKDUHUHGHHPDEOHRYHUDSHULRG
RIPRQWKVWRPRQWKV
7HUPVRIUHSD\PHQWDVDW0DUFK
L3ULYDWHO\SODFHGVXERUGLQDWHGGHEWVRI`
`HDFKXQTXRWHG
` LQODFV
5HGHHPDEOHDWSDUZLWKLQ
5DWHRILQWHUHVW
2YHUPRQWKV
PRQWKV
PRQWKV
PRQWKV
PRQWKV
! ! 7RWDOQRQFXUUHQWSRUWLRQ
PRQWKV
7RWDOFXUUHQWPDWXULWLHV
*UDQG7RWDO
! 7RWDO
-
-
LL3ULYDWHO\SODFHGVXERUGLQDWHGGHEWVRI``HDFKTXRWHG
5HGHHPDEOHDWSDUZLWKLQ
2YHUPRQWKV
7RWDOQRQFXUUHQWSRUWLRQ
` LQODFV
5DWHRILQWHUHVW
! ! ! LLL3ULYDWHO\SODFHGVXERUGLQDWHGGHEWVRI``HDFKTXRWHG
5HGHHPDEOHDWSDUZLWKLQ
2YHUPRQWKV
7RWDOQRQFXUUHQWSRUWLRQ
7RWDO
` LQODFV
5DWHRILQWHUHVW
! )
! ! 7RWDO
$QQH[XUH,9
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
7HUPVRIUHSD\PHQWDVDW0DUFK
L3ULYDWHO\SODFHGVXERUGLQDWHGGHEWVRI`
`HDFK±XQTXRWHG
` LQODFV
5DWHRILQWHUHVW
5HGHHPDEOHDWSDUZLWKLQ
! ! ! 7RWDO
PRQWKV
PRQWKV
PRQWKV
PRQWKV
PRQWKV
7RWDOFXUUHQWPDWXULWLHV
2YHUPRQWKV
7RWDOQRQFXUUHQWSRUWLRQ
*UDQG7RWDO
LL3ULYDWHO\SODFHGVXERUGLQDWHGGHEWVRI``HDFKTXRWHG
` LQODFV
5HGHHPDEOHDWSDUZLWKLQ
! 5DWHRILQWHUHVW
! ! 7RWDO
2YHUPRQWKV
7RWDOQRQFXUUHQWSRUWLRQ
7HUPVRIUHSD\PHQWDVDW0DUFK
3ULYDWHO\SODFHGVXERUGLQDWHGGHEWVRI``HDFK±XQTXRWHG
` LQODFV
5HGHHPDEOHDWSDUZLWKLQ
! PRQWKV
PRQWKV
PRQWKV
PRQWKV
2YHUPRQWKV
5DWHRILQWHUHVW
! ! 7RWDO
8SWRPRQWKV
7RWDOFXUUHQWPDWXULWLHV
7RWDOQRQFXUUHQWSRUWLRQ
*UDQG7RWDO
7HUPVRIUHSD\PHQWDVDW0DUFK
)
$QQH[XUH,9
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
3ULYDWHO\SODFHGVXERUGLQDWHGGHEWVRI``HDFK±XQTXRWHG
` LQODFV
5HGHHPDEOHDWSDUZLWKLQ
2YHUPRQWKV
PRQWKV
PRQWKV
PRQWKV
PRQWKV
7RWDOQRQFXUUHQWSRUWLRQ
8SWRPRQWKV
7RWDOFXUUHQWPDWXULWLHV
*UDQG7RWDO
! 5DWHRILQWHUHVW
! ! 7RWDO
7HUPVRIUHSD\PHQWDVDW0DUFK
3ULYDWHO\SODFHGVXERUGLQDWHGGHEWVRI``HDFK±XQTXRWHG
` LQODFV
5HGHHPDEOHDWSDUZLWKLQ
2YHUPRQWKV
PRQWKV
PRQWKV
PRQWKV
PRQWKV
7RWDOQRQFXUUHQWSRUWLRQ
8SWRPRQWKV
7RWDOFXUUHQWPDWXULWLHV
5DWHRILQWHUHVW
! ! ! 7RWDO
*UDQG7RWDO
)
$QQH[XUH,9
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
2WKHUOLDELOLWLHV
` LQODFV
/RQJWHUP
3DUWLFXODUV
,QWHUHVWDFFUXHGEXWQRWGXHRQ
ERUURZLQJV
$SSOLFDWLRQ0RQH\RQ5HGHHPDEOH
QRQFRQYHUWLEOHGHEHQWXUHV
$SSOLFDWLRQ0RQH\RQ5HGHHPDEOH
6XERUGLQDWHGHEWV
6HFXULWLVDWLRQGHIHUUHGLQFRPH
LQFRPHUHFHLYHGLQDGYDQFH
5HWHQWLRQDQGRWKHU
7RWDO
$VDW0DUFK
` LQODFV
6KRUWWHUP
3DUWLFXODUV
&XUUHQWPDWXULWLHVRIORQJWHUP
ERUURZLQJV>5HIHUQRWH@
,QWHUHVWDFFUXHGEXWQRWGXHRQ
ERUURZLQJV
8QFODLPHGGLYLGHQGV
8QFODLPHGPDWXUHGGHSRVLWVDQG
LQWHUHVWDFFUXHGWKHUHRQ
8QFODLPHGPDWXUHGGHEHQWXUHVDQG
LQWHUHVWDFFUXHGWKHUHRQ
8QFODLPHGPDWXUHG6XERUGLQDWH
GHEWVDQGLQWHUHVWDFFUXHGWKHUHRQ
7HPSRUDU\FUHGLWEDODQFHLQEDQN
DFFRXQWV
7D[GHGXFWHGDWVRXUFH
6HUYLFHWD[SD\DEOH
6WDWXWRU\GXHVSHUWDLQLQJWR
HPSOR\HHV
6HUYLFHWD[FRQWHVWHG
6HFXULWLVDWLRQGHIHUUHGLQFRPH
LQFRPHUHFHLYHGLQDGYDQFH
5HWHQWLRQDQGRWKHU
7RWDO
$VDW0DUFK
$VUHJDUGVWKHUHFRYHU\RI6HUYLFHWD[RQOHDVHDQGKLUHSXUFKDVHWUDQVDFWLRQVWKH+RQRXUDEOH6XSUHPH&RXUWYLGHLWVRUGHU
GDWHG2FWREHUKDVGLUHFWHGWKHFRPSHWHQWDXWKRULW\XQGHUWKH)LQDQFHDFWWRGHFLGHWKHPDWWHULQDFFRUGDQFHZLWK
WKHODZODLGGRZQ
$FFUXHGLQWHUHVWLVXSWRWKHGDWHRIPDWXULW\$PRXQWVVKDOOEHFUHGLWHGWR,QYHVWRU(GXFDWLRQ3URWHFWLRQ)XQGWRWKHH[WHQG
XQFODLPHGDVDQGZKHQGXH
)
$QQH[XUH,9
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
3URYLVLRQV
` LQODFV
/RQJWHUP
3DUWLFXODUV
3URYLVLRQIRU(PSOR\HHEHQHILWV
3URYLVLRQIRUJUDWXLW\
3URYLVLRQIRUOHDYHEHQHILWV
2WKHUSURYLVLRQV
3URYLVLRQIRUVWDQGDUGDVVHWV>5HIHU
QRWHO@
3URYLVLRQIRUKHGJLQJFRQWUDFWV
3URYLVLRQIRUGLPLQXWLRQLQWKHYDOXH
RILQYHVWPHQWV
7RWDO
$VDW0DUFK
-
19.70
` LQODFV
6KRUWWHUP
3DUWLFXODUV
3URYLVLRQIRU(PSOR\HHEHQHILWV
3URYLVLRQIRUJUDWXLW\
3URYLVLRQIRUOHDYHEHQHILWV
2WKHUSURYLVLRQV
3URYLVLRQIRUVWDQGDUGDVVHWV>5HIHU
QRWHO@
3URYLVLRQIRUKHGJLQJFRQWUDFWV
3URYLVLRQIRULQFRPHWD[>QHWRI
DGYDQFHWD[@
3URSRVHGGLYLGHQG
&RUSRUDWHGLYLGHQGWD[
7RWDO
$VDW0DUFK
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
$QQH[XUH,9
` LQODFV
6KRUWWHUPERUURZLQJV
$VDW0DUFK
3DUWLFXODUV
6HFXUHG
3ULYDWHO\SODFHGUHGHHPDEOHQRQFRQYHUWLEOH
GHEHQWXUHV,QVWLWXWLRQDO>5HIHUQRWH$@
7HUPORDQIURPEDQNV>5HIHUQRWH%L@
7HUPORDQIURPILQDQFLDOLQVWLWXWLRQV>5HIHUQRWH
%LL
&DVK&UHGLWIURPEDQN
:RUNLQJFDSLWDOGHPDQGORDQIURPEDQN
8QVHFXUHG
&RPPHUFLDOSDSHUV>5HIHUQRWH@
,QWHU&RUSRUDWH'HSRVLWV
7RWDO
6HFXUHGORDQV6KRUWWHUPERUURZLQJV
$3ULYDWHO\3ODFHG5HGHHPDEOH1RQ&RQYHUWLEOH'HEHQWXUH1&'VRI``HDFKTXRWHG
` LQODFV
7HUPVRIUHSD\PHQW
5DWHRILQWHUHVW
$VDW0DUFK
5HGHHPDEOH
DWSDURQ
$SU
2FW
'HF
%7HUPORDQ
L7HUPORDQIURPEDQN
` LQODFV
7HUPVRIUHSD\PHQW
$VDW0DUFK
5DWHRILQWHUHVW
5HSD\PHQW'HWDLOV
%XOOHW
WR
%XOOHW
7RWDO
1DWXUHRI6HFXULW\
7HUPORDQVIURPEDQNVDUHVHFXUHGE\DQH[FOXVLYHFKDUJHE\ZD\RIK\SRWKHFDWLRQRIVSHFLILFDVVHWVXQGHUILQDQFLQJ
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
$QQH[XUH,9
LL7HUPORDQIURPLQVWLWXWLRQ
` LQODFV
7HUPVRIUHSD\PHQW
5DWHRILQWHUHVW
5HSD\PHQW'HWDLOV
%XOOHWSD\PHQWDWWKH
HQGRI\HDU
7ZRKDOI\HDUO\
LQVWDOPHQWV
PRQWKO\LQVWDOPHQWV
%XOOHW
7RWDO
$VDW0DUFK
1DWXUHRIVHFXULW\
7HUP/RDQVIURPLQVWLWXWLRQVDUHVHFXUHGE\DQH[FOXVLYHFKDUJHE\ZD\RIK\SRWKHFDWLRQRIVSHFLILFDVVHWVXQGHUILQDQFLQJ
&DVK&UHGLWDQG:RUNLQJ&DSLWDO'HPDQG/RDQVIURPEDQNV
&DVKFUHGLWDQGZRUNLQJFDSLWDOGHPDQGORDQIURPEDQNVDUHVHFXUHGE\ZD\RIK\SRWKHFDWLRQRIVSHFLILFPRYDEOHDVVHWVUHODWLQJ
WRWKHORDQV
&RPPHUFLDOSDSHU
` LQODFV
7HUPVRIUHSD\PHQW
$VDW0DUFK
5DWHRI
LQWHUHVW
5HGHHPDEOHDW
SDURQ
6HS
6HS
6HS
6HS
6HS
2FW
2FW
6HS
2FW
$SU
$SU
$SU
$SU
$SU
-XO
$XJ
7RWDO
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
7DQJLEOHDQGLQWDQJLEOHIL[HGDVVHWV
7DQJLEOHDVVHWV
3DUWLFXODUV
/DQG
*URVV%ORFN
$VDW$SULO
3ODQWDQG
PDFKLQHU\
%XLOGLQJ
)XUQLWXUHDQG
IL[WXUHV
9HKLFOHV
/HDVHKROG
LPSURYHPHQWV
$QQH[XUH,9
7RWDOWDQJLEOH
DVVHW
` LQODFV
,QWDQJLEOH
DVVHWV
&RPSXWHU
VRIWZDUH
7RWDOIL[HG
DVVHWV
$GGLWLRQV
'LVSRVDOV
$GMXVWPHQW
$VDW0DUFK
$GGLWLRQV
'LVSRVDOV
$VDW0DUFK
$GGLWLRQV
$GGLWLRQV
'LVSRVDOV
$VDW0DUFK
$GGLWLRQV
'LVSRVDOV
$VDW0DUFK
'LVSRVDOV
$VDW0DUFK
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
7DQJLEOHDQGLQWDQJLEOHIL[HGDVVHWV
7DQJLEOHDVVHWV
3DUWLFXODUV
/DQG
3ODQWDQG
PDFKLQHU\
%XLOGLQJ
)XUQLWXUHDQG
IL[WXUHV
9HKLFOHV
/HDVHKROG
LPSURYHPHQWV
$QQH[XUH,9
7RWDOWDQJLEOH
DVVHW
` LQODFV
,QWDQJLEOH
DVVHWV
&RPSXWHU
VRIWZDUH
7RWDOIL[HG
DVVHWV
'HSUHFLDWLRQ
$VDW$SULO
&KDUJHIRUWKH\HDU
'LVSRVDOV
$GMXVWPHQW
$VDW0DUFK
&KDUJHIRUWKH\HDU
'LVSRVDOV
$VDW0DUFK
&KDUJHIRUWKH\HDU
'LVSRVDOV
$VDW0DUFK
&KDUJHIRUWKH\HDU
'LVSRVDOV
$VDW0DUFK
&KDUJHIRUWKH\HDU
'LVSRVDOV
$VDW0DUFK
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
7DQJLEOHDQGLQWDQJLEOHIL[HGDVVHWV
7DQJLEOHDVVHWV
3DUWLFXODUV
/DQG
3ODQWDQG
PDFKLQHU\
%XLOGLQJ
)XUQLWXUHDQG
IL[WXUHV
9HKLFOHV
/HDVHKROG
LPSURYHPHQWV
$QQH[XUH,9
7RWDOWDQJLEOH
DVVHW
` LQODFV
,QWDQJLEOH
DVVHWV
&RPSXWHU
VRIWZDUH
7RWDOIL[HG
DVVHWV
,PSDLUPHQWORVV
$VDW$SULO
&KDUJHIRUWKH\HDU
$VDW0DUFK
&KDUJHIRUWKH\HDU
'LVSRVDOV
$VDW0DUFK
$VDW0DUFK
$VDW0DUFK
1HW%ORFN
$VDW0DUFK
$VDW0DUFK
$VDW0DUFK
$VDW0DUFK
$VDW0DUFK
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
$QQH[XUH,9
7DQJLEOHDQGLQWDQJLEOHIL[HGDVVHWV
'HSUHFLDWLRQDQGDPRUWLVDWLRQ
$VDW0DUFK
2QWDQJLEOH
2QLQWDQJLEOH
7RWDO
$VDW0DUFK
3DUWLFXODUV
1HW%ORFN
3DUWLFXODUV
2QWDQJLEOH
2QLQWDQJLEOH
7RWDO
)
` LQODFV
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH,9
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
1RQFXUUHQWLQYHVWPHQWV
3DUWLFXODUV
` LQODFV
$VDW0DUFK
/RQJWHUPLQYHVWPHQW
2WKHUWKDQWUDGH
$8QTXRWHGHTXLW\LQVWUXPHQWV
L,QYHVWPHQWLQZKROO\RZQHGVXEVLGLDU\
YDOXHGDWFRVW
(TXLW\VKDUHVRI`HDFKIXOO\SDLGXSLQ
6KULUDP+RXVLQJ)LQDQFH/WG
LL,QYHVWPHQWLQRWKHUFRPSDQLHVYDOXHGDW
FRVW
(TXLW\VKDUHVRI`HDFKIXOO\SDLGXSLQ
+LJKPDUN&UHGLW,QIRUPDWLRQ6HUYLFHV3ULYDWH
/WG
(TXLW\VKDUHVRI`HDFKIXOO\SDLGXSLQ
6KULUDP/LIH,QVXUDQFH&RPSDQ\/LPLWHG
7RWDOXQTXRWHGQRQFXUUHQWLQYHVWPHQW
%4XRWHG,QYHVWPHQW
L,QYHVWPHQWLQJRYHUQPHQWVHFXULWLHV
YDOXHGDWFRVW
7RWDO
$JJUHJDWHDPRXQWRI4XRWHG,QYHVWPHQWVFRVW
RIDFTXLVLWLRQ
$JJUHJDWHDPRXQWRI8QTXRWHG,QYHVWPHQWVFRVW
RIDFTXLVLWLRQ
$JJUHJDWHDPRXQWRISURYLVLRQIRUGLPLQXWLRQLQ
YDOXHRI,QYHVWPHQWV
7RWDOTXRWHGQRQFXUUHQWLQYHVWPHQW
*2,/RDQRIIDFHYDOXH`ODFV
D,QDFFRUGDQFHZLWKWKH5HVHUYH%DQNRI,QGLDFLUFXODUQR5%,'1%63'&&1RGDWHG
-DQXDU\WKHFRPSDQ\KDVFUHDWHGDIORDWLQJFKDUJHRQWKHVWDWXWRU\OLTXLGDVVHWVFRPSULVLQJRILQYHVWPHQWLQJRYHUQPHQW
VHFXULWLHVEHLQJVWDWXWRU\OLTXLGDVVHWVWRWKHH[WHQWRI`ODFVLQIDYRXURIWUXVWHHVUHSUHVHQWLQJWKHSXEOLFGHSRVLWKROGHUVRI
WKHFRPSDQ\
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH,9
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
'HIHUUHGWD[DVVHWQHW
3DUWLFXODUV
$VDW0DUFK
'HIHUUHGWD[OLDELOLWLHV
7LPLQJGLIIHUHQFHRQDFFRXQWRI
)L[HGDVVHWV,PSDFWRIGLIIHUHQFHEHWZHHQ
WD[GHSUHFLDWLRQDQG
GHSUHFLDWLRQDPRUWL]DWLRQFKDUJHGIRUWKH
ILQDQFLDOUHSRUWLQJ
'HIHUUHGH[SHQVHVLQFXUUHGIRU1&'
PRELOL]DWLRQ
*URVVGHIHUUHGWD[OLDELOLWLHV$
'HIHUUHGWD[DVVHW
7LPLQJGLIIHUHQFHRQDFFRXQWRI
)L[HGDVVHWV,PSDFWRIGLIIHUHQFHEHWZHHQ
WD[GHSUHFLDWLRQDQG
GHSUHFLDWLRQDPRUWL]DWLRQFKDUJHGIRUWKH
ILQDQFLDOUHSRUWLQJ
3URYLVLRQIRUVHUYLFHWD[
&RQWLQJHQWSURYLVLRQDJDLQVWVWDQGDUG
DVVHWV
3URYLVLRQIRUOHDYHEHQHILWV
` LQODFV
3URYLVLRQIRUJUDWXLW\
3URYLVLRQIRUGHULYDWLYH
3URYLVLRQIRUERQXV
(VWLPDWHGGLVDOORZDQFHV
*URVVGHIHUUHGWD[$VVHWV%
1HW'HIHUUHGWD[DVVHWOLDELOLWLHV%$
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
$QQH[XUH,9
/RDQVDQGDGYDQFHV
` LQODFV
3DUWLFXODUV
8QVHFXUHGFRQVLGHUHGJRRG
&DSLWDODGYDQFHV
6HFXULW\GHSRVLWV
/RDQVDQGDGYDQFHV
$VVHWVXQGHUILQDQFLQJDFWLYLWLHV
6HFXUHGFRQVLGHUHGJRRG
'RXEWIXO
/HVVSURYLVLRQIRUQRQSHUIRUPLQJ
DVVHWV
8QVHFXUHGFRQVLGHUHGJRRG
'RXEWIXO
/HVVSURYLVLRQIRUQRQSHUIRUPLQJ
DVVHWV
2WKHUORDQDQGDGYDQFHV
8QVHFXUHGFRQVLGHUHGJRRG
,QYHVWPHQWWKURXJK37&
7RWDO
/RQJWHUP
$VDW0DUFK
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
$QQH[XUH,9
/RDQVDQGDGYDQFHV
` LQODFV
3DUWLFXODUV
8QVHFXUHGFRQVLGHUHGJRRG
&DSLWDODGYDQFHV
6HFXULW\GHSRVLWV
/RDQVDQGDGYDQFHV
$VVHWVXQGHUILQDQFLQJDFWLYLWLHV
6HFXUHGFRQVLGHUHGJRRG
'RXEWIXO
/HVVSURYLVLRQIRUQRQSHUIRUPLQJ
DVVHWV
8QVHFXUHGFRQVLGHUHGJRRG
'RXEWIXO
/HVVSURYLVLRQIRUQRQSHUIRUPLQJ
DVVHWV
/RDQDQGDGYDQFHVWRUHODWHGSDUWLHV
6HFXUHGFRQVLGHUHGJRRG
/RDQVWRVXEVLGLDULHV
2WKHUORDQDQGDGYDQFHV
8QVHFXUHGFRQVLGHUHGJRRG
$GYDQFHLQFRPHWD[QHWRISURYLVLRQ
IRUWD[DWLRQ
$GYDQFHVUHFRYHUDEOHLQFDVKRULQNLQG
RUIRUYDOXHWREHUHFHLYHG
,QYHVWPHQWWKURXJK37&
7RWDO
,QFOXGHVGHSRVLWVSOHGJHGZLWK
&RUSRUDWHVDVPDUJLQIRUVHFXULWLVDWLRQ
6KRUWWHUP
$VDW0DUFK
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
$QQH[XUH,9
2WKHUDVVHWV
` LQODFV
3DUWLFXODUV
1RQFXUUHQW
$VDW0DUFK
%DQNEDODQFHVQRQFXUUHQWSRUWLRQ
>5HIHUQRWH@
3XEOLFLVVXHH[SHQVHVIRUQRQ
FRQYHUWLEOHGHEHQWXUHVWRWKH
H[WHQWQRWZULWWHQRIIRUDGMXVWHG
,QWHUHVWDFFUXHGRQIL[HGGHSRVLW
DQGRWKHUORDQDQGDGYDQFHV
6HFXULWLVDWLRQUHFHLYDEOH
6HUYLFHWD[FUHGLWLQSXWUHFHLYDEOH
3UHSDLGH[SHQVHV
2WKHUDVVHWV
7RWDO
&XUUHQW
$VDW0DUFK
` LQODFV
3DUWLFXODUV
3XEOLFLVVXHH[SHQVHVIRUQRQ
FRQYHUWLEOHGHEHQWXUHVWRWKH
H[WHQWQRWZULWWHQRIIRUDGMXVWHG
,QWHUHVWDFFUXHGRQIL[HGGHSRVLW
DQGRWKHUORDQDQGDGYDQFHV
6HFXULWLVDWLRQUHFHLYDEOH
6HUYLFHWD[FUHGLWLQSXWUHFHLYDEOH
3UHSDLGH[SHQVHV
2WKHUDVVHWV
7RWDO
&XUUHQWLQYHVWPHQWV
3DUWLFXODUV
&XUUHQWSRUWLRQRIORQJWHUP
LQYHVWPHQWV
2WKHUWKDQWUDGH
$8QTXRWHGHTXLW\LQVWUXPHQWV
L,QYHVWPHQWLQZKROO\RZQHG
VXEVLGLDU\YDOXHGDWFRVW
(TXLW\VKDUHVRI`HDFKIXOO\SDLGXS
LQ6KULUDP1RQ&RQYHQWLRQDO(QHUJ\
/LPLWHG
7RWDO
$JJUHJDWHDPRXQWRI8QTXRWHG
,QYHVWPHQWVFRVWRIDFTXLVLWLRQ
$VDW0DUFK
`LQODFV
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
$QQH[XUH,9
&DVKDQGEDQNEDODQFHV
` LQODFV
&XUUHQW
$VDW0DUFK
3DUWLFXODUV
&DVKDQGFDVKHTXLYDOHQWV
%DODQFHVZLWKEDQNV
&XUUHQW$FFRXQW
%DODQFHLQXQSDLGGLYLGHQG
DFFRXQWV
%DQN'HSRVLWZLWKRULJLQDO
PDWXULW\RIOHVVWKDQPRQWKV
&DVKRQKDQGDQGUHPLWWDQFHLQ
WUDQVLW
2WKHUEDQN%DODQFHV
%DQNGHSRVLWZLWKRULJLQDOPDWXULW\
IRUPRUHWKDQPRQWKV
%DQNGHSRVLWZLWKRULJLQDOPDWXULW\
IRUPRUHWKDQPRQWKVEXWOHVVWKDQ
PRQWKV
0DUJLQPRQH\'HSRVLW
7RWDO
` LQODFV
1RQFXUUHQW
$VDW0DUFK
3DUWLFXODUV
2WKHUEDQN%DODQFHV
%DQNGHSRVLWZLWKRULJLQDOPDWXULW\
IRUPRUHWKDQPRQWKV
0DUJLQPRQH\'HSRVLW
$PRXQWGLVFORVHGXQGHUWKHKHDG
QRQFXUUHQWDVVHW>5HIHUQRWH@
7RWDO
,QFOXGHVGHSRVLWVSOHGJHGZLWK
%DQNVDVPDUJLQIRUVHFXULWLVDWLRQ
,QFOXGHVGHSRVLWVSOHGJHGDVOLHQ
DJDLQVWORDQVWDNHQ
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
$QQH[XUH,9
5HYHQXHIURPRSHUDWLRQ
` LQODFV
3DUWLFXODUV
)RUWKH\HDUHQGHG0DUFK
,QFRPHIURPILQDQFHDQGRWKHU
FKDUJHV
,QFRPHRQ6HFXULWLVDWLRQ
DVVLJQPHQW
,QWHUHVWRQ0DUJLQPRQH\RQ
VHFXULWLVDWLRQDVVLJQPHQW
%DGGHEWVUHFRYHU\
7RWDO
2WKHULQFRPH
` LQODFV
3DUWLFXODUV
'LYLGHQG,QFRPH
1HWJDLQRQVDOHRILQYHVWPHQWV
2WKHUQRQRSHUDWLQJLQFRPH
,QWHUHVWRQGHSRVLWZLWKEDQN
,QWHUHVWRQJRYHUQPHQWVHFXULWLHV
3URILWRQVDOHRIDVVHWV
&RPPLVVLRQ
&RPSHQVDWLRQFKDUJHV
6DOHRIHOHFWULFLW\
0LVFHOODQHRXVLQFRPH
7RWDO
)RUWKH\HDUHQGHG0DUFK
(PSOR\HHEHQHILWVH[SHQVHV
` LQODFV
3DUWLFXODUV
6DODULHVDQGLQFHQWLYHV
&RQWULEXWLRQVWR3URYLGHQWIXQG
*UDWXLW\
([SHQVHRQ(PSOR\HH6WRFN2SWLRQ
6FKHPH
6WDIIZHOIDUHH[SHQVHV
7RWDO
)RUWKH\HDUHQGHG0DUFK
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
$QQH[XUH,9
)LQDQFHFRVW
` LQODFV
)RUWKH\HDUHQGHG0DUFK
3DUWLFXODUV
,QWHUHVWH[SHQVHRQ
'HEHQWXUH
6XERUGLQDWHGHEWV
)L[HGGHSRVLWV
/RDQVIURPEDQN
/RDQVIURPLQVWLWXWLRQDQGRWKHUV
&RPPHUFLDO3DSHU
%DQN&KDUJHV
3URFHVVLQJDQGRWKHUFKDUJHV
%URNHUDJH
%RUURZLQJ&RVW
7RWDO
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
$QQH[XUH,9
2WKHUH[SHQVHV
` LQODFV
3DUWLFXODUV
5HQW
3RZHUDQGIXHOH[SHQVHV
5HSDLUVPDLQWHQDQFH
3ODQWDQGPDFKLQHU\
2WKHU
5DWHVGXWLHVWD[HV
3ULQWLQJVWDWLRQHU\
7UDYHOOLQJFRQYH\DQFH
$GYHUWLVHPHQW
%XVLQHVVSURPRWLRQH[SHQVHV
&RPPLVVLRQ
6RXUFLQJIHHVDQGRWKHUFKDUJHV
5R\DOW\
'LUHFWRUV
VLWWLQJIHHV
,QVXUDQFH
&RPPXQLFDWLRQH[SHQVHV
3D\PHQWVWRWKHDXGLWRUDV
DDXGLWIHHV
EWD[DXGLWIHHV
FRWKHUVHUYLFHV
3URIHVVLRQDOFKDUJHV
/HJDOSURIHVVLRQDOIHHV
'RQDWLRQV
3XEOLFLVVXHH[SHQVHVIRUQRQ
FRQYHUWLEOHGHEHQWXUH
,PSDLUPHQWORVVRQIL[HGDVVHWVDQG
VWRFN
/RVVRQVDOHRIDVVHWV
/RVVRQVDOHRILQYHVWPHQWV
0LVFHOODQHRXVH[SHQVHV
7RWDO
)RUWKH\HDUHQGHG0DUFK
3URYLVLRQVZULWHRIIV
` LQODFV
3DUWLFXODUV
)RUWKH\HDUHQGHG0DUFK
3URYLVLRQIRUQRQSHUIRUPLQJDVVHWV
3URYLVLRQIRUVWDQGDUGDVVHWV
%DGGHEWVZULWWHQRII
7RWDO
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH,9
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
(DUQLQJVSHUVKDUH(36
3DUWLFXODUV
1HWSURILWDIWHUWD[DVSHUVWDWHPHQWRI
SURILWDQGORVV` iQODFV
/HVVSUHIHUHQFHGLYLGHQG
1HWSURILWIRUHTXLW\VKDUHKROGHUV` iQ
ODFV$
:HLJKWHGDYHUDJHQXPEHURIHTXLW\
VKDUHVIRUFDOFXODWLQJ%DVLF(361R
LQODFV%
:HLJKWHGDYHUDJHQXPEHURIHTXLW\
VKDUHVIRUFDOFXODWLQJ'LOXWHG(36`
LQODFV&
%DVLFHDUQLQJVSHUHTXLW\VKDUHLQ
5XSHHV)DFHYDOXHRI`SHUVKDUH
$%
'LOXWHGHDUQLQJVSHUHTXLW\VKDUHLQ
5XSHHV)DFHYDOXHRI`SHU
VKDUH$&
3DUWLFXODUV
:HLJKWHGDYHUDJHQXPEHURIHTXLW\
VKDUHVIRUFDOFXODWLQJ(361RLQODFV
$GG(TXLW\VKDUHVDULVLQJRQ
FRQYHUVLRQRIRSWLRQDOO\FRQYHUWLEOH
ZDUUDQWV1RLQODFV
$GG(TXLW\VKDUHVIRUQR
FRQVLGHUDWLRQDULVLQJRQJUDQWRIVWRFN
RSWLRQVXQGHU(6231RLQODFV
:HLJKWHGDYHUDJHQXPEHURIHTXLW\
VKDUHVLQFDOFXODWLRQGLOXWHG(361R
LQODFV
)RUWKH\HDUHQGHG0DUFK
)RUWKH\HDUHQGHG0DUFK
)
$QQH[XUH,9
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
*UDWXLW\DQGRWKHUSRVWHPSOR\PHQWEHQHILWSODQV
7KH&RPSDQ\KDVDQXQIXQGHGGHILQHGEHQHILWJUDWXLW\SODQ(YHU\HPSOR\HHZKRKDVFRPSOHWHGILYH\HDUVRUPRUHRIVHUYLFHLV
HOLJLEOHIRUDJUDWXLW\RQVHSDUDWLRQDWGD\VEDVLFVDODU\ODVWGUDZQVDODU\IRUHDFKFRPSOHWHG\HDURIVHUYLFH
&RQVHTXHQWWRWKHDGRSWLRQRIUHYLVHG$6µ(PSOR\HH%HQHILWV¶LVVXHGXQGHU&RPSDQLHV$FFRXQWLQJ6WDQGDUG5XOHVDV
DPHQGHGWKHIROORZLQJGLVFORVXUHVDUHPDGHDVUHTXLUHGE\WKHVWDQGDUG
6WDWHPHQWRISURILWDQGORVV
1HW(PSOR\HHEHQHILWH[SHQVHVUHFRJQLVHGLQWKHHPSOR\HHFRVW
` LQODFV
*UDWXLW\
)RUWKH\HDUHQGHG0DUFK
1$
1$
3DUWLFXODUV
1$
&XUUHQWVHUYLFHFRVW
,QWHUHVWFRVWRQEHQHILWREOLJDWLRQ
([SHFWHGUHWXUQRQSODQDVVHWV
1HWDFWXDULDOJDLQORVVUHFRJQLVHG
LQWKH\HDU
3DVWVHUYLFHFRVW
1HWEHQHILWH[SHQVH
$FWXDOUHWXUQRQSODQDVVHWV
1$
1$
1$
1$
1$
1$
1$
%DODQFHVKHHW
%HQHILWDVVHWOLDELOLW\
` LQODFV
*UDWXLW\
$VDW0DUFK
1$
3DUWLFXODUV
1$
'HILQHGEHQHILWREOLJDWLRQ
)DLUYDOXHRISODQDVVHWV
7RWDO
/HVV8QUHFRJQLVHGSDVWVHUYLFHFRVW
3ODQDVVHWOLDELOLW\
1$
1$
1$
&KDQJHVLQWKHSUHVHQWYDOXHRIWKHGHILQHGEHQHILWREOLJDWLRQDUHDVIROORZV
` LQODFV
*UDWXLW\
3DUWLFXODUV
2SHQLQJGHILQHGEHQHILWREOLJDWLRQ
,QWHUHVWFRVW
&XUUHQWVHUYLFHFRVW
$VDW0DUFK
7UDQVIHUUHGLQOLDELOLWLHV
%HQHILWVSDLG
$FWXDULDOJDLQVORVVHVRQ
REOLJDWLRQ
&ORVLQJGHILQHGEHQHILW
REOLJDWLRQ
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
$QQH[XUH,9
7KHPDMRUFDWHJRULHVRISODQDVVHWVDVDSHUFHQWDJHRIWKHIDLUYDOXHRIWRWDOSODQDVVHWVDUHDVIROORZV
` LQODFV
*UDWXLW\
3DUWLFXODUV
$VDW0DUFK
,QYHVWPHQWVZLWKLQVXUHU
1$
1$
1$
1$
7KHSULQFLSDODVVXPSWLRQVXVHGLQGHWHUPLQLQJJUDWXLW\REOLJDWLRQVIRUWKH&RPSDQ\¶VSODQDUHVKRZQEHORZ
1$
` LQODFV
3DUWLFXODUV
'LVFRXQW5DWH
,QFUHDVHLQFRPSHQVDWLRQFRVW
(PSOR\HH7XUQRYHU
*UDWXLW\
$VDW0DUFK
7KHHVWLPDWHVRIIXWXUHVDODU\LQFUHDVHVFRQVLGHUHGLQDFWXDULDOYDOXDWLRQDUHRQDFFRXQWRILQIODWLRQVHQLRULW\SURPRWLRQDQG
RWKHUUHOHYDQWIDFWRUVVXFKDVVXSSO\DQGGHPDQGLQWKHHPSOR\PHQWPDUNHWWKHDPRXQWVIRU\HDUVDUHDVIROORZV
` LQODFV
3DUWLFXODUV
'HILQHGEHQHILWREOLJDWLRQ
1$
1$
1$
1$
1$
1$
1$
1$
1$
1$
3ODQDVVHWV
6XUSOXVGHILFLW
([SHULHQFHDGMXVWPHQWVRQSODQ
OLDELOLWLHV
([SHULHQFHDGMXVWPHQWVRQSODQ
DVVHWV
(PSOR\HH6WRFN2SWLRQ3ODQV
7KHFRPSDQ\SURYLGHVVKDUHEDVHGSD\PHQWVFKHPHVWRLWVHPSOR\HHV7KHUHOHYDQWGHWDLOVRIWKHVFKHPHDQGWKHJUDQWDUHDV
EHORZ
'DWHRI6KDUHKROGHU¶VDSSURYDO2FWREHU
'DWHRIJUDQW2FWREHU
'DWHRI%RDUG$SSURYDO2FWREHU
1XPEHURIRSWLRQVJUDQWHG
0HWKRGRI6HWWOHPHQW&DVK(TXLW\(TXLW\
*UDGHGYHVWLQJSHULRG
$IWHU\HDUVRIJUDQWGDWHRIRSWLRQVJUDQWHG
$IWHU\HDUVRIJUDQWGDWHRIRSWLRQVJUDQWHG
$IWHU\HDUVRIJUDQWGDWHRIRSWLRQVJUDQWHG
$IWHU\HDUVRIJUDQWGDWHRIRSWLRQVJUDQWHG
([HUFLVDEOHSHULRG\HDUVIURPYHVWLQJGDWH
9HVWLQJ&RQGLWLRQVRQDFKLHYHPHQWRISUH±GHWHUPLQHGWDUJHWV
)
$QQH[XUH,9
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
(PSOR\HH6WRFN2SWLRQ3ODQV
7KHGHWDLOVRI6HULHV,KDYHEHHQVXPPDUL]HGEHORZ
2XWVWDQGLQJDWWKH
EHJLQQLQJRIWKH\HDU
$GG*UDQWHGGXULQJWKH
\HDU
/HVV)RUIHLWHGGXULQJWKH
\HDU
/HVV([HUFLVHGGXULQJWKH
\HDU
/HVV([SLUHGGXULQJWKH
\HDU
2XWVWDQGLQJDWWKHHQGRI
WKH\HDU
([HUFLVDEOHDWWKHHQGRI
WKH\HDU
:HLJKWHGDYHUDJH
UHPDLQLQJFRQWUDFWXDOOLIH
LQ\HDUV
:HLJKWHGDYHUDJHIDLU
YDOXHRIRSWLRQVJUDQWHG
$VDW0DUFK
1XPEHURI
:HLJKWHG
6KDUHV
$YHUDJH
([HUFLVH
`)
3ULFHLQ`
$VDW0DUFK
1XPEHURI
:HLJKWHG
6KDUHV
$YHUDJH
([HUFLVH
`)
3ULFHLQ`
$VDW0DUFK
1XPEHURI
:HLJKWHG
6KDUHV
$YHUDJH
([HUFLVH
`)
3ULFHLQ`
)
$VDW0DUFK
1XPEHURI
:HLJKWHG
6KDUHV
$YHUDJH
([HUFLVH
`)
3ULFHLQ`
$VDW0DUFK
1XPEHURI
:HLJKWHG
6KDUHV
$YHUDJH
([HUFLVH
`)
3ULFHLQ`
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
$QQH[XUH,9
(PSOR\HH6WRFN2SWLRQ3ODQV
7KHGHWDLOVRIH[HUFLVHSULFHIRUVWRFNRSWLRQVRXWVWDQGLQJDWWKHHQGRIWKHSHULRGDUH
$VDW0DUFK
:HLJKWHGDYHUDJH
:HLJKWHGDYHUDJH
1RRIRSWLRQV UHPDLQLQJFRQWUDFWXDO
RXWVWDQGLQJ
OLIHRIRSWLRQVLQ ([HUFLVH3ULFHLQ``
\HDUV
5DQJHRIH[HUFLVH
`
SULFHVLQ`
6WRFN2SWLRQVJUDQWHG
7KHZHLJKWHGDYHUDJHIDLUYDOXHRIVWRFNRSWLRQVJUDQWHGZDV5V7KH%ODFN6FKROHVPRGHOKDVEHHQXVHGIRUFRPSXWLQJ
WKHZHLJKWHGDYHUDJHIDLUYDOXHRIRSWLRQVFRQVLGHULQJWKHIROORZLQJLQSXWV
([HUFLVH3ULFH5V
([SHFWHG9RODWLOLW\
1$
1$
1$
1$
+LVWRULFDO9RODWLOLW\
/LIHRIWKHRSWLRQVJUDQWHG
9HVWLQJDQGH[HUFLVHSHULRGLQ
\HDUV
([SHFWHGGLYLGHQGVSHUDQQXP`
$YHUDJHULVNIUHHLQWHUHVWUDWH
([SHFWHGGLYLGHQGUDWH
7KHH[SHFWHGYRODWLOLW\ZDVGHWHUPLQHGEDVHGRQKLVWRULFDOYRODWLOLW\GDWDHTXDOWRWKH16(YRODWLOLW\UDWHRI%DQN1LIW\ZKLFKLV
FRQVLGHUHGDVDFRPSDUDEOHSHHUJURXSRIWKH&RPSDQ\7RDOORZIRUWKHHIIHFWVRIHDUO\H[HUFLVHLWZDVDVVXPHGWKDWWKH
HPSOR\HHVZRXOGH[HUFLVHWKHRSWLRQVZLWKLQVL[PRQWKVIURPWKHGDWHRIYHVWLQJLQYLHZRIWKHH[HUFLVHSULFHEHLQJVLJQLILFDQWO\
ORZHUWKDQWKHPDUNHWSULFH
(IIHFWRIWKHHPSOR\HHVKDUHEDVHGSD\PHQWSODQVRQWKHSURILWDQGORVVDFFRXQWDQGRQLWVILQDQFLDOSRVLWLRQ
` LQODFV
&RPSHQVDWLRQFRVWSHUWDLQLQJWRHTXLW\VHWWOHG
HPSOR\HHVKDUHEDVHGSD\PHQWSODQLQFOXGHG
DERYH
/LDELOLW\IRUHPSOR\HHVWRFNRSWLRQV
RXWVWDQGLQJDVDW\HDUHQG
'HIHUUHGFRPSHQVDWLRQFRVW
1LO
)
$VDW0DUFK
1LO
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
$QQH[XUH,9
6LQFHWKHFRPSDQ\XVHGWKHLQWULQVLFYDOXHPHWKRGWKHLPSDFWRQWKHUHSRUWHGQHWSURILWDQGHDUQLQJVSHUVKDUHE\
DSSO\LQJWKHIDLUYDOXHEDVHGPHWKRGLVDVIROORZV
,Q0DUFKWKH,&$,LVVXHGDJXLGDQFHQRWHRQ³$FFRXQWLQJIRU(PSOR\HHV6KDUH%DVHG3D\PHQWV´DSSOLFDEOHWRHPSOR\HH
EDVHGVKDUHSODQWKHJUDQWGDWHLQUHVSHFWRIZKLFKIDOOVRQRUDIWHU$SULO7KHVDLGJXLGDQFHQRWHUHTXLUHVWKDWWKH
SURIRUPDGLVFORVXUHVRIWKHLPSDFWRIWKHIDLUYDOXHPHWKRGRIDFFRXQWLQJRIHPSOR\HHVWRFNFRPSHQVDWLRQDFFRXQWLQJLQWKH
ILQDQFLDOVWDWHPHQWV$SSO\LQJWKHIDLUYDOXHEDVHGPHWKRGGHILQHGLQWKHVDLGJXLGDQFHQRWHWKHLPSDFWRQWKHUHSRUWHGQHWSURILW
DQGHDUQLQJVSHUVKDUHZRXOGEHDVIROORZV
)RUWKH\HDUHQGHG0DUFK
3URILWDVUHSRUWHG`LQODFV
$GG(PSOR\HHVWRFNFRPSHQVDWLRQXQGHU
LQWULQVLFYDOXHPHWKRG`LQODFV
/HVV(PSOR\HHVWRFNFRPSHQVDWLRQXQGHUIDLU
YDOXHPHWKRG`LQODFV
3URIRUPDSURILW`LQODFV
/HVV3UHIHUHQFH'LYLGHQG
3URIRUPD1HW3URILWIRU(TXLW\6KDUHKROGHUV
%DVLF`
$VUHSRUWHG
3URIRUPD
'LOXWHG`
$VUHSRUWHG
3URIRUPD
(DUQLQJVSHUVKDUH
6HJPHQW,QIRUPDWLRQ
7KHFRPSDQ\KDVJRWDVLQJOHUHSRUWDEOHVHJPHQW
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
$QQH[XUH,9
5HODWHG3DUW\'LVFORVXUH
6KULUDP+RXVLQJ)LQDQFH/LPLWHGIURPWK1RYHPEHU
6+)/
6KULUDP1RQ&RQYHQWLRQDO(QHUJ\/LPLWHGWLOOWK-XQH
61&(/
L6XEVLGLDULHV
LL2WKHU5HODWHG3DUWLHV
(QWHUSULVHVKDYLQJVLJQLILFDQWLQIOXHQFHRYHUWKH&RPSDQ\
6KULUDP(QWHUSULVHV+ROGLQJ3ULYDWH/LPLWHG6(+3/
6KULUDP5HWDLO+ROGLQJV3ULYDWH/LPLWHG65+3/
6KULUDP&DSLWDO/LPLWHG6&/
73*,QGLD,QYHVWPHQWV,,QF73*,
6KULUDP2ZQHUVKLS7UXVW627
LLL.H\0DQDJHULDO3HUVRQQHO
5'XUXYDVDQ0DQDJLQJ'LUHFWRU
*66XQGDUDUDMDQ0DQDJLQJ'LUHFWRU
5.DQQDQ0DQDJLQJ'LUHFWRU
LY5HODWLYHVRI.H\0DQDJHULDO3HUVRQQHO
$.RPDOHHVZDULVSRXVHRI5'XUXYDVDQ
1LWK\D6XQGDUDUDMDQVSRXVHRI*66XQGDUDUDMDQ
9DVDQWKL.DQQDQVSRXVHRI5.DQQDQ
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
5HODWHG3DUW\'LVFORVXUH
` LQODFV
3D\PHQWV([SHQVHV
5R\DOW\WR627
'DWD6RXUFLQJ)HHVWR627
6HUYLFH&KDUJHV627
5R\DOW\WR6&/
'DWD6RXUFLQJ)HHVWR6&/
6HUYLFH&KDUJHV6&/
5HLPEXUVHPHQWRIEXVLQHVVSURPRWLRQ
H[SHQVHVUHQWDQGRWKHUH[SHQVHVWR
6&/
/LFHQVH)HHVWR6&/
6HFXULW\'HSRVLWVIRUUHQWWR6+)/
*UDWXLW\UHQWDQGRWKHUH[SHQVHVWR
6+)/
(TXLW\GLYLGHQGWR6&/
(TXLW\GLYLGHQGWR6(+3/
(TXLW\GLYLGHQGWR65+3/
,QYHVWPHQWVLQ(TXLW\VKDUHVLQ6+)/
/RDQWR61&(/
3D\PHQW RI 6DODU\ DQG 5HLPEXUVHPHQW
RIUHQWDQGRWKHUH[SHQVHVWR
5'XUXYDVDQ0DQDJLQJ'LUHFWRU
(QWHUSULVHVKDYLQJVLJQLILFDQWLQIOXHQFHRYHUWKH
&RPSDQ\
0DUFK
6XEVLGLDULHV
.H\0DQDJHULDO3HUVRQQHO
0DUFK
0DUFK
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
5HODWHG3DUW\'LVFORVXUH
` LQODFV
5HFHLSWV
6XEVFULSWLRQ WR RSWLRQDOO\ FRQYHUWLEOH
ZDUUDQWV6&/
6XEVFULSWLRQV WR RSWLRQDOO\ FRQYHUWLEOH
ZDUUDQWV65+3/
&RQYHUVLRQ
RI
ZDUUDQWV
LQWR
HTXLW\VHFXULWLHVSUHPLXPWR6(+3/
&RQYHUVLRQ
RI
ZDUUDQWV
LQWR
HTXLW\VHFXULWLHVSUHPLXPWR6&/
6DOHRILQYHVWPHQWV6&/
,QWHUHVWUHFHLYHG61&(/
5HLPEXUVHPHQW UHFHLYHG IURP 6+)/
WRZDUGVRWKHUH[SHQVHV
%DODQFHRXWVWDQGLQJDVDW
6KDUH&DSLWDOKHOGE\6&/
6KDUH&DSLWDOKHOGE\6(+3/
6KDUH&DSLWDOKHOGE\65+3/
6KDUHZDUUDQWV6&/
6KDUHZDUUDQWV65+3/
,QYHVWPHQWLQ6KDUHVRI61&(/
,QYHVWPHQWLQ6KDUHVRI6+)/
2XWVWDQGLQJ([SHQVHV6&/
2XWVWDQGLQJ([SHQVHV627
6HFXULW\'HSRVLWVIRUUHQWWR6+)/
,QWHUHVWUHFHLYDEOHRQORDQWR61&(/
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
$QQH[XUH,9
&RQWLQJHQWOLDELOLWLHVDQGFRPPLWPHQWVWRWKHH[WHQWQRWSURYLGHGIRU
L&RQWLQJHQWOLDELOLWLHV
` LQODFV
SDUWLFXODUV
D,QFRPHWD[
E*XDUDQWHHVLVVXHGE\WKH&RPSDQ\
F*XDUDQWHHVLVVXHGE\RWKHUV
$VDW0DUFK
7KH,QFRPHWD[DVVHVVPHQWRIWKHFRPSDQ\KDVEHHQFRPSOHWHGXSWRWKH$VVHVVPHQW<HDU
7KHGLVSXWHGGHPDQGRXWVWDQGLQJIRUWKHDVVHVVPHQW<HDULV`ODFV)RUDVVHVVPHQW\HDUGLVSXWHG
DPRXQWRQDFFRXQWRISHQDOW\SURFHHGLQJVLV`ODFV7KHDVVHVVPHQWKDVEHHQUHRSHQHGIRUDVVHVVPHQW\HDUDQG
WKHGLVSXWHGDPRXQWRXWVWDQGLQJLV`ODFV7KHFRPSDQ\KDVILOHGDSSHDOIRUDOOWKHVHGLVSXWHGFDVHVDQGWKHVDPHLV
SHQGLQJEHIRUHWKH&RPPLVVLRQHURI,QFRPH7D[$SSHDOV&KHQQDL
7KHFRPSDQ\KDVSURYLGHG16(ZLWKDEDQNJXDUDQWHHIRU`ODFVIURP,QGXVLQGEDQN1XQJDPEDNNDP&KHQQDLEUDQFK
DQGDGHSRVLWRI`ODFVDVVHFXULW\GHSRVLWERWKWRJHWKHURIWRWDOSXEOLFLVVXHRIVHFXUHGQRQFRQYHUWLEOHGHEHQWXUHVRI
`ODFV>5HIHUQRWH@
7KHFRPSDQ\KDVSURYLGHG16(ZLWKDEDQNJXDUDQWHHIRU`ODFVIURP,QGXVLQGEDQN1XQJDPEDNNDP&KHQQDLEUDQFK
DQGDGHSRVLWRI`ODFVDVVHFXULW\GHSRVLWERWKWRJHWKHURIWRWDOSXEOLFLVVXHRIVHFXUHGQRQFRQYHUWLEOHGHEHQWXUHVRI
`ODFV>5HIHUQRWH@
6WDQGDUG&KDUWHUHG%DQNKDGSURYLGHGJXDUDQWHHIRU`ODFVLQIDYRXURI%DQNRI0DKDUDVKWUDIRU6HFXULWLVDWLRQ7KH
JXDUDQWHHZDVFORVHGRQ0D\
LL&RPPLWPHQWV
` LQODFV
SDUWLFXODUV
(VWLPDWHGDPRXQWRIFRQWUDFWV
UHPDLQLQJWREHH[HFXWHGRQFDSLWDO
DFFRXQWDQGQRWSURYLGHGIRUQHWRI
DGYDQFH
&RPPLWPHQWVWRLQYHVWLQWKHVXEVLGLDU\
FRPSDQ\LH6KULUDP+RXVLQJ)LQDQFH
/LPLWHG
$VDW0DUFK
)
$QQH[XUH,9
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
8WLOL]DWLRQRIPRQH\UDLVHGWKURXJKSXEOLFLVVXHRIGHEHQWXUHDQGSUHIHUHQWLDOLVVXHRIHTXLW\VKDUHVDQGZDUUDQWV
L7KURXJKSXEOLFLVVXHRIGHEHQWXUHV>5HIHU1RWH$LLL@
'XULQJWKH\HDUHQGHG0DUFKWKHFRPSDQ\KDVUDLVHG`ODFVWKURXJKSXEOLFLVVXHRIVHFXUHGUHGHHPDEOHQRQ
FRQYHUWLEOHGHEHQWXUHRIIDFHYDOXHRI`HDFK7KHSURFHHGVRILVVXHDUHXWLOL]HGIRUWKHIROORZLQJSXUSRVH
`LQODFV
3DUWLFXODUV
5HSD\PHQWRI/RDQVIURP%DQNV)XQGLQJRI&DVK&UHGLW$FFRXQW
5HSD\PHQWRI&RPPHUFLDO3DSHU
7RWDO
'XULQJWKH\HDUHQGHG0DUFKWKHFRPSDQ\KDVUDLVHG`ODFVWKURXJKSXEOLFLVVXHRIVHFXUHGUHGHHPDEOHQRQ
FRQYHUWLEOHGHEHQWXUHRIIDFHYDOXHRI`HDFK7KHSURFHHGVRILVVXHDUHXWLOL]HGIRUWKHIROORZLQJSXUSRVH
3DUWLFXODUV
'LVEXUVHPHQWRIORDQV
`LQODFV
5HSD\PHQWRIORDQVIURPEDQNV
5HSD\PHQWRIORDQV7HUPORDQV6HFXULWLVDWLRQORDQV
7RWDO
LLWKURXJKSUHIHUHQWLDOLVVXHRIHTXLW\VKDUHVDQGZDUUDQWV>5HIHUQRWHLL@
3DUWLFXODUV
)'SODFHG:LWK%DQN
`LQODFV
'LVEXUVHPHQWRIORDQ
7RWDO
'XULQJWKH\HDUHQGHGRQ0DUFKHTXLW\VKDUHVZHUHDOORWWHGWR6KULUDP(QWHUSULVH+ROGLQJV3ULYDWH/LPLWHG
LQH[FLVHRILWVRSWLRQRIFRQYHUVLRQRIZDUUDQWVLQWRHTXLW\VKDUHVDWDSULFHRI` LQFOXGHVSUHPLXPRI `7KHWRWDO
DPRXQWRI`ODFVUHFHLYHGIURPWKHVDLGSUHIHUHQWLDODOORWPHQWZDVXWLOL]HGIRUWKHSXUSRVHRIWKLVLVVXH
)
$QQH[XUH,9
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
6HFXULWLVDWLRQ$VVLJQPHQW
7KH&RPSDQ\VHOOVORDQVWKURXJKVHFXULWLVDWLRQDQGGLUHFWDVVLJQPHQW
L7KHLQIRUPDWLRQRQGLUHFWDVVLJQPHQWDFWLYLW\RIWKH&RPSDQ\DVDQRULJLQDWRULVJLYHQEHORZ
` LQODFV
3DUWLFXODUV
)RUWKH\HDUHQGHG0DUFK
7RWDOQXPEHURIDVVHWV
7RWDOERRNYDOXHRIDVVHWV`LQODFV
6DOHFRQVLGHUDWLRQUHFHLYHG`LQODFV
*DLQ` LQODFV
2XWVWDQGLQJFUHGLWHQKDQFHPHQW'HSRVLW
ZLWKEDQNVFRUSRUDWH` LQODFV
2XWVWDQGLQJ&UHGLWHQKDQFHPHQW±5HWDLQHG
LQWHUHVWRQVHFXULWLVDWLRQ`LQODFV
*DLQRQGLUHFWDVVLJQPHQWGHDOVLVDPRUWLVHGRYHUWKHSHULRGRIWKHORDQ
LL7KHLQIRUPDWLRQRQVHFXULWLVDWLRQDFWLYLW\RIWKH&RPSDQ\DVDQRULJLQDWRULVJLYHQEHORZ
` LQODFV
)RUWKH\HDUHQGHG0DUFK
3DUWLFXODUV
7RWDOQXPEHURIDVVHWV
7RWDOERRNYDOXHRIDVVHWV`LQODFV
6DOHFRQVLGHUDWLRQUHFHLYHG`LQODFV
*DLQ` LQODFV
2XWVWDQGLQJFUHGLWHQKDQFHPHQW'HSRVLW
ZLWKEDQNVFRUSRUDWH`LQODFV
2XWVWDQGLQJ&UHGLWHQKDQFHPHQW±5HWDLQHG
LQWHUHVWRQVHFXULWLVDWLRQ`LQODFV
*DLQRQVHFXULWLVDWLRQLVDPRUWLVHGRYHUWKHSHULRGRIWKHORDQ
'HULYDWLYH,QVWUXPHQWV
7KH1RWLRQDOSULQFLSDODPRXQWRIGHULYDWLYHWUDQVDFWLRQVRXWVWDQGLQJDVRQ0DUFKLV`ODFVIRULQWHUHVWUDWH
VZDSV`ODFV0DUFK`ODFV
([SHQGLWXUHLQIRUHLJQFXUUHQF\FDVKEDVLV
` LQODFV
)RUWKH\HDUHQGHG0DUFK
6XEVFULSWLRQ)HHV
)
$QQH[XUH,9
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
1RWHVIRUPLQJSDUWRI5HIRUPDWWHGVXPPDU\RI$VVHWVDQG/LDELOLWLHV
7KHFRPSDQ\KDGQRGLVFRQWLQXLQJRSHUDWLRQVGXULQJWKH\HDUHQGHG0DUFK0DUFK0DUFK
0DUFKDQG0DUFKUHVSHFWLYHO\
2SHUDWLQJOHDVHSD\PHQWVDUHUHFRJQLVHGDVDQH[SHQVHLQWKH6WDWHPHQWRISURILWDQGORVVRQDVWUDLJKWOLQH
EDVLVRYHUWKHOHDVHWHUP)XWXUHPLQLPXPOHDVHSD\PHQWVXQGHURSHUDWLQJOHDVHVDVRQ0DUFK
` LQODFV
D1RWODWHUWKDQ\HDU
E0RUHWKDQ\HDUDQGOHVVWKDQ\HDUV
F/DWHUWKDQ\HDUV
,QDGGLWRQWRDXGLWRUVUHPXQHUDWLRQVKRZQLQRWKHUH[SHQVHVWKHFRPSDQ\KDVDOVRLQFXUUHGDXGLWRUVUHPXQHUDWLRQDPRXQWLQJ
WR`ODFVLQ)<DQG`ODFVLQ)<LQFRQQHFWLRQZLWKRWKHUVHUYLFHVSURYLGHGE\DXGLWRUVIRU
SXEOLFLVVXHRIQRQFRQYHUWLEOHGHEHQWXUHVDQGWKHVDPHKDVEHHQDPRUWLVHGDVSHU$QQH[,9QRWHYVWDWHGXQGHURWKHU
DVVHWVDVSXEOLFLVVXHH[SHQGLWXUHWRWKHH[WHQWQRWZULWWHQRII
%DVHGRQWKHLQWLPDWLRQUHFHLYHGE\WKHFRPSDQ\QRQHRIWKHVXSSOLHUVKDYHFRQILUPHGWREHUHJLVWHUHGXQGHUWKH0LFUR
6PDOODQG0HGLXP(QWHUSULVHV'HYHORSPHQW
060('
$FW7KHUHIRUHWKHUHODWHGLQIRUPDWLRQIRUWKLVSXUSRVHVWDQGVWR
EH1LO
7KHPLQLVWU\RI&RUSRUDWH$IIDLUV*RYHUQPHQWRI,QGLDYLGH*HQHUDO&LUFXODU1RDQGGDWHGWK)HEUXDU\DQGVW
)HEUXDU\UHVSHFWLYHO\KDVJUDQWHGDJHQHUDOH[HPSWLRQIURPFRPSOLDQFHZLWKVHFWLRQRIWKH&RPSDQLHV$FW
VXEMHFWWRIXOILOPHQWRIFRQGLWLRQVVWLSXODWHGLQWKHFLUFXODUDQGKHQFHLVHQWLWOHGWRWKHH[HPSWLRQ1HFHVVDU\LQIRUPDWLRQUHODWLQJ
WRWKHVXEVLGLDULHVKDVEHHQLQFOXGHGLQWKH&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH9
6WDWHPHQWRI&RQWLQJHQW/LDELOLWLHV
` LQODFV
3DUWLFXODUV
D,QFRPHWD[
E*XDUDQWHHVLVVXHGE\WKH&RPSDQ\
F*XDUDQWHHVLVVXHGE\RWKHUV
$VDW0DUFK
&RPPLWPHQWVQRWSURYLGHGIRU
`LQODFV
3DUWLFXODUV
(VWLPDWHGDPRXQWRIFRQWUDFWVUHPDLQLQJWR
EHH[HFXWHGRQFDSLWDODFFRXQWDQGQRW
SURYLGHGIRUQHWRIDGYDQFH
&RPPLWPHQWVWRLQYHVWLQWKHVXEVLGLDU\
FRPSDQ\LH6KULUDP+RXVLQJ)LQDQFH
/LPLWHG
$VDW0DUFK
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH9,
6WDWHPHQWRIGLYLGHQG
6WDWHPHQWRIGLYLGHQGLQUHVSHFWRIHTXLW\VKDUHV
)RUWKH\HDUHQGHG0DUFK
3DUWLFXODUV
,QWHULP'LYLGHQG
5DWHRI'LYLGHQG
1XPEHURI(TXLW\6KDUHVRQZKLFKLQWHULP
GLYLGHQGSDLG
$PRXQWRI,QWHULP'LYLGHQG
'LYLGHQG'LVWULEXWLRQWD[
'LYLGHQG'LVWULEXWLRQWD[5DWH
)LQDO'LYLGHQGIRUWKHSUHYLRXV\HDU
5DWHRI'LYLGHQG
1XPEHURI(TXLW\6KDUHVRQZKLFKLQWHULP
GLYLGHQGSDLG
$PRXQWRI,QWHULP'LYLGHQG
'LYLGHQG'LVWULEXWLRQWD[
'LYLGHQG'LVWULEXWLRQWD[5DWH
3URSRVHG)LQDO'LYLGHQGIRUWKHFXUUHQW
\HDU
5DWHRI'LYLGHQG
1XPEHURI(TXLW\6KDUHVRQZKLFKILQDO
GLYLGHQGSDLG
3UHIHUHQWLDODOORWPHQW(623
$PRXQWRI)LQDO'LYLGHQG
'LYLGHQG'LVWULEXWLRQWD[
'LYLGHQG'LVWULEXWLRQWD[5DWH
6WDWHPHQWRIGLYLGHQGLQUHVSHFWRISUHIHUHQFHVKDUHV
RIGLYLGHQG
)RUWKH\HDUHQGHG0DUFK
7RWDOVKDUHV
$PRXQWRIGLYLGHQG`LQODFV
'LYLGHQGGLVWULEXWLRQ7D[`LQODFV
'XULQJWKHILQDQFLDO\HDUHQGHGRQ0DUFKDOOSUHIHUHQFHVKDUHVZHUHUHGHHPHG
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH9,,
6WDWHPHQWRI$FFRXQWLQJ5DWLRV
>&DOFXODWLRQRI(DUQLQJV3HU6KDUH(36@
(DUQLQJVSHUVKDUHFDOFXODWLRQLVGRQHLQDFFRUGDQFHZLWK$FFRXQWLQJ6WDQGDUG(DUQLQJ3HU6KDUHQRWLILHGXQGHU
$FFRXQWLQJ6WDQGDUGV$6XQGHU&RPSDQLHV$FFRXQWLQJ6WDQGDUG5XOHVDVDPHQGHG
$VDW0DUFK
3DUWLFXODUV
1HWSURILWDIWHUWD[DVSHU6WDWHPHQWRISURILW
DQGORVV`LQODFV
/HVV3UHIHUHQFHGLYLGHQGLQFOXGLQJWD[RQ
GLYLGHQG`LQODFV
1HW3URILW$WWULEXWDEOHWR(TXLW\
6KDUHKROGHUV`LQODFV
D
:HLJKWHGDYHUDJHQXPEHURI(TXLW\6KDUH
2XWVWDQGLQJGXULQJWKH\HDUSHULRGIRU
%DVLF(36LQODFV
E
L(TXLW\6KDUHDULVLQJRQFRQYHUVLRQRI
RSWLRQDOO\FRQYHUWLEOHZDUUDQWVODFV
F
LL(TXLW\6KDUHIRUQRFRQVLGHUDWLRQ
DULVLQJRQJUDQWRI6WRFNRSWLRQXQGHU
(623ODFV
G
:HLJKWHGDYHUDJHQXPEHURI(TXLW\6KDUHV
RXWVWDQGLQJGXULQJWKH\HDUSHULRGIRU
'LOXWHG(36EFGODFV
H
(DUQLQJVSHUVKDUH%DVLFV`
`DE
(DUQLQJVSHUVKDUH'LOXWHG`
`DH
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH9,,
6WDWHPHQWRI$FFRXQWLQJ5DWLRV
>&DOFXODWLRQRI5HWXUQRQ1HW:RUWK521:@
` LQODFV
3DUWLFXODUV
6+$5(+2/'(56)81'6
6KDUHFDSLWDO
5HVHUYHVDQGVXUSOXV
0RQH\UHFHLYHGDJDLQVWVKDUHZDUUDQWV
6KDUHDSSOLFDWLRQPRQH\SHQGLQJDOORWPHQW
1HWSURILWDIWHUWD[
/HVV0LVFHOODQHRXV([SHQGLWXUHQRWZULWWHQ
RII
1HWZRUWKDVDWWKHHQGRIWKH\HDU
$VDW0DUFK
5HWXUQRQ1HW:RUWK$QQXDOLVHG
6WDWHPHQWRI$FFRXQWLQJ5DWLRV
>&DOFXODWLRQRI1HW$VVHW9DOXH1$93HU(TXLW\6KDUH@
`LQODFV
3DUWLFXODUV
6+$5(+2/'(56)81'6
6KDUHFDSLWDO
5HVHUYHVDQGVXUSOXV
0RQH\UHFHLYHGDJDLQVWVKDUHZDUUDQWV
6KDUHDSSOLFDWLRQPRQH\SHQGLQJDOORWPHQW
$VDW0DUFK
1HW$VVHW9DOXH
1XPEHURI(TXLW\VKDUHVRXWVWDQGLQJDWWKH
HQGRIWKH\HDUSHULRG
/HVV0LVFHOODQHRXV([SHQGLWXUHQRWZULWWHQ
RII
1HWDVVHW9DOXHSHU(TXLW\6KDUH``
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH9,,,
6HFXUHGORDQV
$7HUPORDQIURPEDQNV
` LQODFV
3DUWLFXODUV
'DWHRI
'LVEXUVHPHQW
%DODQFHDVRQ
0DUFKVW
'LVEXUVHG
DPRXQW
$OODKDEDG%DQN
'HF
$QGKUD%DQN
%DQNRI,QGLD
)HE
2FW
%DQN2I0DKDUDVWUD
0DU
%DQN2I0DKDUDVWUD
6HS
&DQDUD%DQN
&DQDUD%DQN
6HS
6HS
&DQDUD%DQN
)HE
&RUSRUDWLRQ%DQN
'HF
,&,&,%DQN
0DU
,QGLDQ%DQN
6HS
2ULHQWLDO%DQNRI
&RPPHUFH
0DU
2ULHQWLDO%DQNRI
&RPPHUFH
-DQ
6WDWH%DQNRI0\VRUH
6WDWH%DQNRI3DWLDOD
1RY
'HF
6WDWH%DQNRI3DWLDOD
0DU
6\QGLFDWH%DQN
)HE
8QLWHG%DQNRI,QGLD
6HS
9LMD\D%DQN
0DU
<HV%DQN
'%6
)HE
0D\
-XO
6WDWH%DQNRI7UDYDQFRUH
$XJ
8&2
$XJ
$OODKDEDG%DQN
6HS
'HQDEDQN
6HS
6\QGLFDWH%DQN
)
5HSD\PHQWWHUPV
5HSD\DEOHLQWKUHH(TXDO,QVW2I5VFU
HDFKDWWKHHQGRIWKWKWKPRQWK
IURPWKHGDWHRI'LVE
5HSD\DEOHLQKDOI\HDUO\LQVWDOPHQWV
%XOOHWSD\PHQWDWWKHHQGRIPRQWK
5HSD\DEOHRI5VFUVHDFKDWWKHHQGRI
WKPRQWKQGPRQWK
3ULQFLSDODPWRI5VFU(DFKSDLGDWWKH
HQGRIWKQGPRQWK
%XOOHWSD\PHQWDWWKHHQGRIPRQWKV
%XOOHWSD\PHQWDWWKHHQGRIPRQWKV
%XOOHWSD\PHQWDWWKHHQGRIPRQWKIURP
WKHGDWHRIDYDLOPHQW
%XOOHWSD\PHQWDWWKHHQGRI\HDUV
5HSD\DEOHLQ2FW$SU2FW$SU
&UVHDFKPRQWKV
%XOOHWSD\PHQWDIWHUPRQWKV
5HSD\DEOHLQ4XDUWHUO\LQVWDOPHQWVRI5V
&UHDFKDIWHUDQLQLWLDOPRUDWRULXPSHULRGRI
PRQWKV
5HSD\PHQWLQWZRHTXDOKDOI\HDUO\
LQVWDOPHQWDIWHUDPRUDWRULXPRIRQH\HDU
IURPWKHGDWHRIDYDLOPHQW
%XOOHWSD\PHQWDWWKHHQGRI\HDUV
%XOOHWSD\PHQWDWWKHHQGRI\HDUV
5HSD\PHQWDWWKHHQG2IHYHU\PRQWKVLQ
DQQXDOHTXDOLQVWDOPHQWV
5HSD\DEOHLQEXOOHWIURPFRPSOHWLRQRI
PRQWKVIURPGDWHRI'LVE
5HSDLGLQHTXDODQQXDOLQVWDOPHQWVRI
5VFURUHVHDFK
5HSD\DEOH,Q0RQWKV:LWK$Q,QLWLDO
0RUDWRULXP3HULRG2I0RQWKV
7KHUHDIWHU,W6KRXOG%H5HSDLG,Q(PL
%XOOHWSD\PHQWDWWKHHQGRI\HDUV
%XOOHWSD\PHQWDWWKHHQGRI\HDU
5HSD\DEOHLQEXOOHWDWWKHHQGRIWKPRQWK
IURPWKHGDWHRIGLVEXUVHPHQW
%XOOHWSD\PHQWDWWKHHQGRIPRQWKVIURP
WKHGDWHRIDYDLOPHQW
%XOOHW5HSD\PHQWDIWHU\UVXSIURQWIHHV
ODNKV5XSHHV
%XOOHW5HSD\PHQWDWWKHHQGRIPRQWKV
IURPVWGLVE
KDOI\HDUO\LQVWDOPHQWFRPPHQFLQJDIWHUD
PRUDWRULXPSHULRGRIPRQWKVIURPWKH
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH9,,,
6HFXUHGORDQV
$7HUPORDQIURPEDQNV
` LQODFV
3DUWLFXODUV
'DWHRI
'LVEXUVHPHQW
%DODQFHDVRQ
0DUFKVW
'LVEXUVHG
DPRXQW
-.%DQN/WG
6HS
8QLRQ%DQNRI,QGLD
6HS
,QJ9\V\D%DQN
6HS
%DQNRI%DURGD
6HS
&RUSRUDWLRQ%DQN
6HS
8QLWHG%DQNRI,QGLD
1RY
,QGLDQ2YHUVHDV%DQN
,QGLDQ2YHUVHDV%DQN
2ULHQWLDO%DQNRI
&RPPHUFH
1RY
1RY
'HF
,QGXV,QG%DQN
'HF
%DQN2I0DKDUDVWUD
'HF
&HQWUDO%DQNRI,QGLD
'HF
9LMD\D%DQN
7RWDO
'HF
5HSD\PHQWWHUPV
GDWHRIVWGLVE
%XOOHW5HSD\PHQWDWWKHHQGRIPRQWKV
IURPVWGLVE
%XOOHW5HSD\PHQWDWWKHHQGRI\HDUIURP
VWGLVE
(TXDOLQVWDOPHQWRICODFVHDFK
%XOOHW5HSD\PHQWDWWKHHQGRIPRQWKV
IURPVWGLVE
%XOOHW5HSD\PHQWDWWKHHQGRI\HDUVIURP
WKHGDWHRIDYDLOPHQW
5HSDLGLQHTXDODQQXDOLQVWDOPHQWVRI
5VURUHVHDFK5HSD\PHQWRILQVWDOPHQWDW
WKHHQGRIPRQWKV\UV
%XOOHWSD\PHQWDWPDWXULW\\UV
%XOOHWSD\PHQWDWPDWXULW\\UV
3ULQFLSDOVKDOOEHUHSDLGRQWKUGWK
PRQWKVRI5VFURUHVHDFK
HTXDOTXDUWHUO\LQVWDOPHQWVFRPPHQFLQJ
PWKVDIWHUGLVEXUVDO
3ULQFLSDORI5VFURUHVHDFKDWHQGRIWK
QGPRQWKIURPWKHGDWHRIVW
GLVEXUVHPHQW
5HSD\PHQWUGDWHQGRIPWKVUGDW
WKHHQGRIPWKVUGDWWKHHQGRIPWKV
%XOOHWSD\PHQWDWWKHHQGRIWKHWKPRQWK
6HFXUHGORDQV
%7HUPORDQIURPRWKHU
` LQODFV
3DUWLFXODUV
'DWHRI
'LVEXUVHPHQW
%DODQFHDVRQ
0DUFK
'LVEXUVHG
DPRXQW
6,'%,
$XJ
6,'%,
'HF
6,'%,
$XJ
-XO
&LWLFRUS)LQDQFH,QGLD/WG
7RWDO
)
5HSD\PHQWWHUPV
5HSD\DEOHDWHQGRI\HDUVIURPWKHGDWHRI
GLVEXUVHPHQW
5HSD\DEOHRQDQQXDOEDVLVDWHQGRI
WKPRQWKDWWKPRQWK
DWDQGWKPRQWKIURPWKHGDWHRI
GLVEXUVHPHQW
5HSD\ZLWKLQPRQWKVVWQG
LQVWDOPHQWFURUHVUGWKFURUHVWK
WKFURUHVHDFKDWWKHHQGRI
PWKVPRQWKVPRQWKV
PRQWKVPWKVPRQWKV
5HSD\DEOHDWHQGRI\HDUIURPWKHGDWHRI
GLVEXUVHPHQW
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH9,,,
6HFXUHGORDQV
&&DVKFUHGLWIURPEDQNVLQFOXGLQJ:&'/
3DUWLFXODUV
&DVK&UHGLW
$QGKUD%DQN
'DWHRI
'LVEXUVHPHQW
'HF
` LQODFV
%DODQFHDVRQ0DUFK
'LVEXUVHGDPRXQW
$[LV%DQN
'HF
%DQNRI,QGLD
-XQ
%DQNRI0DKDUDVKWUD
0DU
&DQDUD%DQN
1RY
&HQWUDO%DQNRI,QGLD
0DU
&LW\8QLRQ%DQN
-DQ
&RUSRUDWLRQ%DQN
'HF
'%6%DQN
-XO
'HQD%DQN
0DU
)HGHUDOEDQN
0DU
&HQWXULRQ%DQN+GIF
2FW
,&,&,%DQN
-XQ
,'%,%DQN
0DU
,QGLDQ%DQN
1RY
,QGLDQ2YHUVHDV%DQN
-DQ
,QGXVLQG%DQN
-XQ
,QJ9\V\D%DQN/WGL
0DU
-DPPX.DVKPLU%DQN/WG
0DU
.RWDN0DKLQGUD%DQN
-DQ
2ULHQWDO%DQNRI&RPPHUFH
6HS
3XQMDE1DWLRQDO%DQN
0DU
6WDWHEDQNRI%LNDQHU-DLSXU
6HS
6WDWHEDQNRI,QGLD
-XQ
6WDWH%DQNRI0DXULWLXVOWG
-XQ
1RY
6WDWH%DQNRI3DWLDOD
)HE
7DPLOQDGX0HUFDQWLOH%DQN
$XJ
6RXWK,QGLDQ%DQN
-XQ
8QLRQ%DQNRI,QGLD
0DU
8QLWHGEDQNRI,QGLD
0DU
.DUXU9\V\DEDQN
1RY
6\QGLFDWH%DQN
:&'/
0DU
+6%&%DQN
6HS
&,7,%$1.
-XQ
&DQDUD%DQN
6HS
6RXWK,QGLD%DQN
6HS
6WDWH%DQNRILQGLD
0DU
6WDWHEDQNRI0\VRUH
7RWDO
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH9,,,
6HFXUHGORDQV
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH9,,,
6HFXUHGORDQV
'3ULYDWHO\SODFHGVHFXUHGUHGHHPDEOHQRQFRQYHUWLEOHGHEHQWXUHRI`
`HDFK
` LQODFV
3DUWLFXODUV
'DWHRI
$OORWPHQW
'LVEXUVHG
DPRXQW
%DODQFHDVRQ
0DUFK
&RUSRUDWLRQ%DQN
6HS
&HQWUDO%DQNRI,QGLD
6HS
&HQWUDO%DQNRI3HQWLRQ)XQG
6HS
&HQWUDO%DQNRI3URYLGHQW
)XQG
6HS
$OODKDEDG%DQN
6HS
%DQNRI%DURGD
2FW
$.&DSLWDO6HUYLFHV
2FW
7RWDO
5HSD\PHQWWHUPV
\HDUVVWWK\HDUQG
\HDUVDQGWK\HDU
\HDUVVWWK\HDUQG
\HDUVDQGWK\HDU
\HDUVVWWK\HDUQG
\HDUVDQGWK\HDU
\HDUVVWWK\HDUQG
\HDUVDQGWK\HDU
\HDUVVWWK\HDUQG
\HDUVDQGWK\HDU
\HDUVVWWK\HDUQG
\HDUVDQGWK\HDU
\HDUVVWWK\HDUQG
\HDUVDQGWK\HDU
(3ULYDWHO\SODFHGVHFXUHGUHGHHPDEOHQRQFRQYHUWLEOHGHEHQWXUHRI``HDFK
` LQODFV
3DUWLFXODUV
'DWHRI
$OORWPHQW
'LVEXUVHG
DPRXQW
%DODQFHDVRQ
0DUFK
6WDQGDUG&KDUWHUHG%DQN
$SU
,QJ9\V\D%DQN
1RY
,QJ9\V\D%DQN
,QJ9\V\D%DQN
'HF
'HF
)HE
0DU
1RY
2FW
2FW
1RY
'HF
-DQ
)HE
)HE
)HE
)HE
0D\
-XO
-XO
-XO
-XO
-XO
-XO
-KDUNKDQG*UDPLP%DQN
'HXWVFKH%DQN
3UDPHULFD0XWXDO)XQG
.RWDN0DKLQGUD0XWXDO)XQG
.RWDN0DKLQGUD0XWXDO)XQG
.RWDN0DKLQGUD0XWXDO)XQG
+')&0XWXDO)XQG
.RWDN0DKLQGUD0XWXDO)XQG
'HXWVFKH%DQN
+')&0XWXDO)XQG
.RWDN0DKLQGUD0XWXDO)XQG
6XQGDUDP0XWXDO)XQG
7UXVW&DSLWDO6HUYLFHV,QGLD
3YW/WG
8QLWHG,QGLD,QVXUDQFH
'HQD%DQN(PSOR\HHV3HQVLRQ
'HQD%DQN(PSOR\HHV3HQVLRQ
.RWDN0DKLQGUD0XWXDO)XQG
3UDPHULFD0XWXDO)XQG
3UDPHULFD0XWXDO)XQG
7RWDO
)
5HSD\PHQWWHUPV
5HSD\DEOHKDOI\HDUO\LQVWDOPHQW
,QHTXDOLQVWDOPHQWLQWKWK
WK\HDUIURPGHHPHGGDWHRI
DOORWPHQW
%XOOHWSD\PHQWRQ
%XOOHWSD\PHQWRQ
6WDJJHUHGHTXDOLQVWDOPHQWVRI
HDFKDWSDUVWDUWLQJIURPWKHHQGRI
WK\HDUWLOOHQGRIWK\HDU
%XOOHWSD\PHQWRQ
%XOOHWSD\PHQWRQ
%XOOHWSD\PHQWRQ
%XOOHWSD\PHQWRQ
%XOOHWSD\PHQWRQ
%XOOHWSD\PHQWRQ
%XOOHWSD\PHQWRQ
%XOOHWSD\PHQWRQ
%XOOHWSD\PHQWRQ
%XOOHWSD\PHQWRQ
%XOOHWSD\PHQWRQ
%XOOHWSD\PHQWRQ
%XOOHWSD\PHQWRQ
%XOOHWSD\PHQWRQ
%XOOHWSD\PHQWRQ
%XOOHWSD\PHQWRQ
%XOOHWSD\PHQWRQ
%XOOHWSD\PHQWRQ
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH9,,,
6HFXUHGORDQV
)3XEOLFLVVXHRIVHFXUHGUHGHHPDEOHQRQFRQYHUWLEOHGHEHQWXUHRI`
`HDFK
` LQODFV
3DUWLFXODUV
2SWLRQ,
2SWLRQ,,
7RWDO
1RRI'HEHQWXUH
KROGHUV
%DODQFHDVRQ0DUFK
5HSD\DEOHRQ$XJ
5HSD\DEOHRQ$XJ
5HSD\DEOHRQ$XJ
5HSD\DEOHRQ$XJ
5HSD\DEOHRQ$XJ
5HSD\DEOHRQ$XJ
5HSD\PHQWWHUPV
*3XEOLFLVVXHRIVHFXUHGUHGHHPDEOHQRQFRQYHUWLEOHGHEHQWXUHRI``HDFK
` LQODFV
3DUWLFXODUV
2SWLRQ,
2SWLRQ,,
7RWDO
1RRI'HEHQWXUH
KROGHUV
%DODQFHDVRQ0DUFK
5HSD\DEOHRQ2FW
5HSD\DEOHRQ2FW
5HSD\DEOHRQ2FW
5HSD\DEOHRQ2FW
5HSD\PHQWWHUPV
+3ULYDWHO\SODFHGVHFXUHGUHGHHPDEOHQRQFRQYHUWLEOHGHEHQWXUHRI`
`HDFK
` LQODFV
3DUWLFXODUV
6HFXUHGUHGHHPDEOHQRQ
FRQYHUWLEOHGHEHQWXUHV5HWDLO
%DODQFHDVRQ
0DUFK
5HSD\PHQWWHUPV
5HGHHPDEOHDWSDURYHUDSHULRGRIPRQWKV
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH,;
8QVHFXUHGORDQV
$)L[HG'HSRVLWV
3DUWLFXODUV
)L[HG'HSRVLWV
%DODQFHDVRQ
5HSD\PHQWWHUPV
0DUFK
5HGHHPDEOHDWSDURYHUDSHULRGRIPRQWKV
%6XERUGLQDWHG'HEW,QVWLWXWLRQDO
`LQODFV
3DUWLFXODUV
$.&DSLWDO)LQDQFH
$.&DSLWDO)LQDQFH
&DQDUD%DQN
&HQWUDO%DQN
%DQN2I%DURGD
/DNVKPL9LOODV%DQN
6DOLP3DWWLZDOD
0DGDY3UDVDG-DODQ
7KH6RXWK,QGLDQ%DQN/WG
$[LV%DQN
,QGLDQ2YHUVHDV%DQN
9LG\XW6XSSOLHUV3UL6XE'HEW
&RUSRUDWLRQ%DQN
$[LVEDQNOWG
8,,&(3)
,2%
&DQDUD%DQN
6\QGLFDWH%DQN
%DQNRI%DURGD
,2%*UDWXLW\)XQG
$.&DSLWDO)LQDQFH
8QLWHG,QGLD,QVXUDQFH&R/WG
8QLWHG,QGLD,QVXUDQFH&R/WG
7RWDO
'DWHRI
$OORWPHQW
-DQ
-DQ
)HE
)HE
)HE
)HE
0DU
0DU
0DU
0DU
0DU
0DU
0DU
0DU
'HF
'HF
'HF
'HF
'HF
'HF
-DQ
-DQ
-DQ
'LVEXUVHGDPRXQW
%DODQFHDVRQ
0DUFK
5HSD\PHQWWHUPV
5HSD\DEOHRQ
5HSD\DEOHRQ
5HSD\DEOHRQ
5HSD\DEOHRQ
5HSD\DEOHRQ
5HSD\DEOHRQ
5HSD\DEOHRQ
5HSD\DEOHRQ
5HSD\DEOHRQ
5HSD\DEOHRQ
5HSD\DEOHRQ
5HSD\DEOHRQ
5HSD\DEOHRQ
5HSD\DEOHRQ
5HSD\DEOHRQ
5HSD\DEOHRQ
5HSD\DEOHRQ
5HSD\DEOHRQ
5HSD\DEOHRQ
5HSD\DEOHRQ
5HSD\DEOHRQ
5HSD\DEOHRQ
5HSD\DEOHRQ
&6XERUGLQDWHG'HEW5HWDLO
3DUWLFXODUV
6XERUGLQDWHG'HEW
`LQODFV
%DODQFHDVRQ
5HSD\PHQWWHUPV
0DUFK
5HGHHPDEOHDWSDURYHUDSHULRGRIPRQWKV
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH,;
8QVHFXUHGORDQV
'&RPPHUFLDO3DSHU
3DUWLFXODUV
+')&7UXVWHH&RPSDQ\/LPLWHG
.RWDN0DKLQGUD7UXVWHH&R/WG
.RWDN0DKLQGUD7UXVWHH&R/WG
.RWDN0DKLQGUD7UXVWHH&R/WG
.RWDN0DKLQGUD7UXVWHH&R/WG
7DWD0XWXDO)XQG
,QFUHGLEOH,QGLD)RFXV)XQG/LPLWHG
7RWDO
%DODQFHDVRQ
0DUFK
5HSD\PHQWWHUPV
5HSD\DEOHRQ$SU
5HSD\DEOHRQ$SU
5HSD\DEOHRQ$SU
5HSD\DEOHRQ$SU
5HSD\DEOHRQ$SU
5HSD\DEOHRQ-XO
5HSD\DEOHRQ$XJ
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH;
&DSLWDOLVDWLRQVWDWHPHQW
` LQODFV
3ULRUWRWKH,VVXHDV
DW0DUFK
$XGLWHG
3RVWWRWKH,VVXH
'HEW
6KRUWWHUPGHEW
/RQJWHUPGHEW
3DUWLFXODUV
7RWDOGHEW
6KDUHKROGHUVIXQG
6KDUHFDSLWDO
5HVHUYHVDQGVXUSOXV
0RQH\UHFHLYHGDJDLQVWVKDUHZDUUDQWV
6KDUHDSSOLFDWLRQPRQH\SHQGLQJDOORWPHQW
/HVV0LVFHOODQHRXV([SHQGLWXUHQRWZULWWHQRII
7RWDO6KDUHKROGHUVIXQG
/RQJWHUPGHEW(TXLW\UDWLR
7KHGHEWHTXLW\UDWLRSRVWWKH,VVXHLVLQGLFDWLYHDQGLVRQDFFRXQWRIDVVXPHGLQIORZRI`ODFVIURPWKH,VVXHDVRQ
0DUFK
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH;,
6WDWHPHQWRI7D[6KHOWHU
` LQODFV
3DUWLFXODUV
3URILWDVSHUDFFRXQWLQJERRNVEXVLQHVV
3URILWDVSHUDFFRXQWLQJERRNVLQYHVWPHQWV
7RWDOSURILWDVSHUDFFRXQWLQJERRNV
7D[UDWHRQEXVLQHVVLQFRPH
7D[UDWHRQLQYHVWPHQWLQFRPH
7D[RQDFFRXQWLQJSURILW
)RUWKH\HDUHQGHG0DUFK
7HPSRUDU\'LIIHUHQFHV
'HSUHFLDWLRQDQG/HDVHDGMXVWPHQWV
'HIHUUHGUHYHQXHH[SHQVHV
3URYLVLRQIRUVWDQGDUGDVVHWV
3URYLVLRQIRU/HDYH*UDWXLW\%RQXV
3URYLVLRQIRU'HULYDWLYHFRQWUDFW
2WKHUV
6XE7RWDO%
1HW$GMXVWPHQWV$%
3HUPDQHQW'LIIHUHQFHV
'RQDWLRQ
([HPSW'LYLGHQG,QFRPH
'LVDOORZDQFHXV$
&DSLWDOJDLQVRQVDOHRIIL[HGDVVHWV
(PSOR\HH&RPSHQVDWLRQ([SHQVHV
2WKHUV
6XE7RWDO$
7D[,PSDFWRQ1HW$GMXVWPHQWV
7RWDO7D[DWLRQ
&XUUHQW7D[3URYLVLRQIRUWKH\HDU
)
$QQH[XUH±;,,
PIJUSH GUPTA & CO
CHARTERED ACCOUNTANTS
P-199, CIT ROAD, SCHEME IV-M, KOLKATA – 700 010
Independent Auditor’s Report
To
The Board of Directors
Shriram City Union Finance Limited
123, Angappa Road,
Chennai – 600001
We have audited the accompanying interim unconsolidated financial statements of M/s Shriram
City Union Finance Limited (The Company) which comprise Balance Sheet as at 30 th September 2013
and the Statement of Profit & Loss and the Cash Flow Statement for the period of six month then
ended and a summary of significant accounting policies & other explanatory notes thereon.
Management’s Responsibility
Management is responsible for the preparation of Interim Financial Statements in accordance with
the requirements of principles of accounting generally accepted in India, including those specified
under the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006.
This responsibility includes the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the said financial Statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these interim financial Statements based on our audit.
We conducted our audit in accordance with the Standards of Auditing issued by the Institute of
Chartered Accountants of India. Those standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance about whether the said interim
financial Statement are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the interim financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the interim financial
)
statements, whether due to fraud or error. In making those risk assessments, the auditor considers
the internal controls relevant to the Company’s preparation and fair presentation of the interim
financial statements in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing
an opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating
the appropriateness of the accounting policies used and the reasonableness of the accounting
estimates made by Management as well as evaluating the overall presentation of the interim
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the
said Interim Financial Statements
(i) have been prepared and presented in accordance with the requirements of principles of
accounting generally accepted in India including those specified under the Accounting Standard
notified under companies (Accounting Standard) Rules 2006, and exhibits true and fair view.
a) In the case of the Balance Sheet, of the state of the affairs of the company as at September 30,
2013;
b) In the case of the Statement of Profit and Loss, of the profit for the six month period ended on
that date; and
c) In the case of the Cash Flow Statement, of the cash flow for the six month period ended on that
date.
FOR PIJUSH GUPTA & CO
Chartered Accountants
Firm Registration No. 309015E
Ramendra Nath Das
Partner
Membership Number 14125
Place: Chennai
Date: October 26, 2013
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH±;,,
%DODQFH6KHHW
` LQODFV
1RWHV
3DUWLFXODUV
$VDW6HSW $VDW0DUFK
,(TXLW\DQG/LDELOLWLHV
6KDUHKROGHUV¶IXQGV
D6KDUHFDSLWDO
E5HVHUYHVDQGVXUSOXV
F0RQH\UHFHLYHGDJDLQVWVKDUHZDUUDQWV
6KDUHDSSOLFDWLRQPRQH\SHQGLQJDOORWPHQW
1RQFXUUHQWOLDELOLWLHV
D/RQJWHUPERUURZLQJV
E2WKHUORQJWHUPOLDELOLWLHV
F/RQJWHUPSURYLVLRQV
&XUUHQWOLDELOLWLHV
D6KRUWWHUPERUURZLQJV
E2WKHUFXUUHQWOLDELOLWLHV
F6KRUWWHUPSURYLVLRQV
7RWDO
,,$66(76
1RQFXUUHQWDVVHWV
D)L[HGDVVHWV
L7DQJLEOHDVVHWV
LL,QWDQJLEOHDVVHWV
E1RQFXUUHQWLQYHVWPHQWV
F'HIHUUHGWD[DVVHWV
G/RQJWHUPORDQVDQGDGYDQFHV
H2WKHUQRQFXUUHQWDVVHWV
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH±;,,
%DODQFH6KHHW
` LQODFV
1RWHV
3DUWLFXODUV
$VDW6HSW $VDW0DUFK
&XUUHQWDVVHWV
D&XUUHQW,QYHVWPHQW
E&DVKDQGEDQNEDODQFHV
F6KRUWWHUPORDQVDQGDGYDQFHV
G2WKHUFXUUHQWDVVHWV
7RWDO
6XPPDU\RIVLJQLILFDQWDFFRXQWLQJSROLFLHV
2WKHUQRWHVWRDFFRXQWV
WR
7KHQRWHVUHIHUUHGWRDERYHIRUPDQLQWHJUDOSDUWRIWKHILQDQFLDOVWDWHPHQWV
$VSHURXUUHSRUWRIHYHQGDWH
)RUDQGRQEHKDOIRIWKH%RDUGRI'LUHFWRUVRI
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
)RU3LMXVK*XSWD&R
)LUP5HJLVWUDWLRQ1R(
&KDUWHUHG$FFRXQWDQWV
5'XUXYDVDQ
0DQDJLQJ'LUHFWRU
5DPHQGUD1DWK'DV
3DUWQHU
0HPEHUVKLSQR
&5'DVK
&RPSDQ\6HFUHWDU\
3ODFH&KHQQDL
'DWH2FWREHU
)
*66XQGDUDUDMDQ
0DQDJLQJ'LUHFWRU
6KULUDP&LW\8QLRQ)LQDQFH/WG
$QQH[XUH±;,,
6WDWHPHQWRI3URILWDQG/RVV
3DUWLFXODUV
` LQODFV
)RUWKH\HDUHQGHG0DUFK
)RUWKHSHULRGHQGHG6HSW
1RWHV
5HYHQXHIURPRSHUDWLRQV
2WKHULQFRPH
7RWDO5HYHQXH
([SHQVHV
(PSOR\HHEHQHILWVH[SHQVH
)LQDQFHFRVWV
'HSUHFLDWLRQDQGDPRUWL]DWLRQH[SHQVH
2WKHUH[SHQVHV
3URYLVLRQVZULWHRIIVQHW
3URILWEHIRUHWD[
7D[H[SHQVH
&XUUHQWWD[
'HIHUUHGWD[
(TXLW\VKDUHVRISDUYDOXH`HDFK
%DVLF`)
'LOXWHG`)
7RWDOH[SHQVHV
7RWDOWD[H[SHQVH
3URILWDIWHUWD[IURPFRQWLQXLQJ
RSHUDWLRQV
(DUQLQJVSHUHTXLW\VKDUH
6XPPDU\RIVLJQLILFDQWDFFRXQWLQJSROLFLHV
2WKHUQRWHVWRDFFRXQWV
WR
7KHQRWHVUHIHUUHGWRDERYHIRUPDQLQWHJUDOSDUWRIWKHILQDQFLDOVWDWHPHQWV
$VSHURXUUHSRUWHYHQGDWH
)RUDQGRQEHKDOIRIWKH%RDUGRI'LUHFWRUVRI
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
)RU3LMXVK*XSWD&R
)LUP5HJLVWUDWLRQ1R(
&KDUWHUHG$FFRXQWDQWV
5'XUXYDVDQ
0DQDJLQJ'LUHFWRU
5DPHQGUD1DWK'DV
3DUWQHU
0HPEHUVKLSQR
&5'DVK
&RPSDQ\6HFUHWDU\
3ODFH&KHQQDL
'DWH2FWREHU
)
*66XQGDUDUDMDQ
0DQDJLQJ'LUHFWRU
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH±;,,
&DVKIORZVWDWHPHQW
&DVKIORZIURP2SHUDWLQJDFWLYLWLHV
1HWSURILWEHIRUHWD[DWLRQ
)RUWKHSHULRGHQGHG
6HSW
(`)LQODFV
)RUWKH\HDUHQGHG
0DUFK
1RQFDVKDGMXVWPHQWVWRUHFRQFLOHSURILWEHIRUHWD[WRQHWFDVKIORZV
'HSUHFLDWLRQDQGDPRUWL]DWLRQ
/RVVRQVDOHRIIL[HGDVVHWV
3XEOLFLVVXHH[SHQGLWXUHIRUQRQFRQYHUWLEOHGHEHQWXUHV
3URYLVLRQIRUQRQSHUIRUPLQJDVVHWVDQGEDGGHEWVZULWWHQRII
&RQWLQJHQWSURYLVLRQRQVWDQGDUGDVVHWV
3URYLVLRQIRUGLPLQXWLRQLQWKHYDOXHRILQYHVWPHQWV
3URYLVLRQIRUJUDWXLW\
3URYLVLRQIRUOHDYHEHQHILWV
1HWJDLQRQVDOHRIFXUUHQWLQYHVWPHQWV
,QWHUHVWLQFRPHRQFXUUHQWDQGORQJWHUPLQYHVWPHQWVDQGLQWHUHVW
LQFRPHRQIL[HGGHSRVLWV
'LYLGHQG,QFRPH
2SHUDWLQJSURILWEHIRUHZRUNLQJFDSLWDOFKDQJHV
0RYHPHQWLQ:RUNLQJFDSLWDO
,QFUHDVHGHFUHDVHLQDVVHWVXQGHUILQDQFLQJDFWLYLWLHV
,QFUHDVHGHFUHDVHLQ6KRUWWHUPORDQVDQGDGYDQFHV
,QFUHDVHGHFUHDVHLQ/RQJWHUPORDQVDQGDGYDQFHV
,QFUHDVHGHFUHDVHLQRWKHUFXUUHQWDVVHWV
,QFUHDVHGHFUHDVHLQRWKHUQRQFXUUHQWDVVHWV
,QFUHDVHGHFUHDVHLQRWKHUFXUUHQWOLDELOLWLHV
,QFUHDVHGHFUHDVHLQRWKHUQRQFXUUHQWOLDELOLWLHV
1HW&DVKIORZIURPXVHGLQRSHUDWLQJDFWLYLWLHV$
&DVKIORZIURPLQYHVWLQJDFWLYLWLHV
,QYHVWPHQWLQIL[HGGHSRVLWVKDYLQJPDWXULW\RIPRUHWKDQWKUHH
PRQWKV
,QYHVWPHQWLQPDUJLQPRQH\GHSRVLWV
3XUFKDVHRIIL[HGDQGLQWDQJLEOHDVVHWV
&DVKJHQHUDWHGIURPRSHUDWLRQV
'LUHFWWD[HVSDLGQHWRIUHIXQG
3URFHHGVIURPVDOHRIIL[HGDVVHWV
,QYHVWPHQWLQVXEVLGLDU\FRPSDQ\
,QYHVWPHQWLQ0XWXDOIXQG
3URFHHGVIURPVDOHRILQYHVWPHQWVQHW
,QWHUHVWUHFHLYHGRQFXUUHQWDQGORQJWHUPLQYHVWPHQWVDQGLQWHUHVWRQ
IL[HGGHSRVLWV
'LYLGHQGUHFHLYHG
1HWFDVKIORZIURPXVHGLQLQYHVWLQJDFWLYLWLHV%
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH±;,,
&DVKIORZIURPILQDQFLQJDFWLYLWLHV
)RUWKHSHULRGHQGHG
6HSW
)RUWKH\HDUHQGHG
0DUFK
3URFHHGVIURPLVVXHRIHTXLW\VKDUHFDSLWDOLQFOXGLQJ
VHFXULWLHVSUHPLXPDQGVKDUHDSSOLFDWLRQPRQH\
,QFUHDVHGHFUHDVHRIORQJWHUPERUURZLQJV
,QFUHDVHGHFUHDVHRIVKRUWWHUPERUURZLQJV
3XEOLFLVVXHH[SHQVHVIRUQRQFRQYHUWLEOHGHEHQWXUHVSDLG
'LYLGHQG3DLG
7D[RQGLYLGHQG
)RUWKHSHULRGHQGHG
6HSW
)RUWKH\HDUHQGHG
0DUFK
&DVKDQGEDQNEDODQFHUHFHLYHGRQDFFRXQWRIPHUJHUZLWK65+3/
1HW&DVKIORZIURPXVHGLQILQDQFLQJDFWLYLWLHV&
1HWLQFUHDVHGHFUHDVHLQFDVKDQGFDVKHTXLYDOHQWV
$%&
&DVKDQGFDVKHTXLYDOHQWVDWWKHEHJLQQLQJRIWKH\HDU
&DVKDQGFDVKHTXLYDOHQWVDWWKHHQGRIWKH\HDU
&RPSRQHQWRIFDVKDQGFDVKHTXLYDOHQWV
&DVKRQKDQG
%DODQFHVZLWKEDQNV
&XUUHQWDFFRXQWV
%DODQFHLQXQSDLGGLYLGHQGDFFRXQWV
%DQNGHSRVLWVZLWKPDWXULW\RIOHVVWKDQPRQWKV
7RWDO&DVKDQGFDVKHTXLYDOHQWV
7KHQRWHVUHIHUUHGWRDERYHIRUPDQLQWHJUDOSDUWRIWKHILQDQFLDOVWDWHPHQWV
$VSHURXUUHSRUWHYHQGDWH
)RUDQGRQEHKDOIRIWKH%RDUGRI'LUHFWRUVRI
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
)RU3LMXVK*XSWD&R
)LUP5HJLVWUDWLRQ1R(
&KDUWHUHG$FFRXQWDQWV
5'XUXYDVDQ
0DQDJLQJ'LUHFWRU
5DPHQGUD1DWK'DV
3DUWQHU
0HPEHUVKLSQR
&5'DVK
&RPSDQ\6HFUHWDU\
3ODFH&KHQQDL
'DWH2FWREHU
)
*66XQGDUDUDMDQ
0DQDJLQJ'LUHFWRU
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH±;,,
1RWHVIRUPLQJSDUWRIWKHILQDQFLDOVWDWHPHQWVIRUWKHSHULRGHQGLQJ6HSWHPEHU
&RUSRUDWHLQIRUPDWLRQ
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHGWKHFRPSDQ\LVDSXEOLFFRPSDQ\GRPLFLOHGLQ,QGLDDQGLVLQFRUSRUDWHGXQGHUWKH
SURYLVLRQVRIWKH&RPSDQLHV$FW,WVVKDUHVDUHOLVWHGRQ%RPED\6WRFN([FKDQJH/WG%6(1DWLRQDO6WRFN([FKDQJHRI
,QGLD/WG16(DQG0DGUDV6WRFN([FKDQJH/WG06(7KHFRPSDQ\LVD'HSRVLW$FFHSWLQJ1RQ%DQNLQJ)LQDQFH&RPSDQ\
1%)&UHJLVWHUHGZLWK5HVHUYH%DQNRI,QGLD5%,7KHFRPSDQ\RSHUDWHVLQ,QGLD
%DVLVRISUHSDUDWLRQ
7KHILQDQFLDOVWDWHPHQWVRIWKHFRPSDQ\KDYHEHHQSUHSDUHGLQDFFRUGDQFHZLWKJHQHUDOO\DFFHSWHGDFFRXQWLQJSULQFLSOHVLQ,QGLD
,QGLDQ*$$37KHFRPSDQ\KDVSUHSDUHGWKHVHILQDQFLDOVWDWHPHQWVWRFRPSO\LQDOOPDWHULDOUHVSHFWVZLWKWKHDFFRXQWLQJ
VWDQGDUGVQRWLILHGXQGHUWKH&RPSDQLHV$FFRXQWLQJ6WDQGDUGV5XOHVDVDPHQGHGWKHUHOHYDQWSURYLVLRQVRIWKH
&RPSDQLHV$FWDQGWKHJXLGHOLQHVLVVXHGE\5%,DVDSSOLFDEOHWR1%)&V7KHILQDQFLDOVWDWHPHQWVKDYHEHHQSUHSDUHGRQ
DQDFFUXDOEDVLVDQGXQGHUWKHKLVWRULFDOFRVWFRQYHQWLRQ
7KHDFFRXQWLQJSROLFLHVDGRSWHGLQWKHSUHSDUDWLRQRIILQDQFLDOVWDWHPHQWVDUHFRQVLVWHQWZLWKWKRVHXVHGLQWKHSUHYLRXV\HDU
6XPPDU\RIVLJQLILFDQWDFFRXQWLQJSROLFLHV
D&KDQJHLQDFFRXQWLQJSROLF\
3UHVHQWDWLRQDQGGLVFORVXUHRIILQDQFLDOVWDWHPHQWV
5HYLVHG6FKHGXOH9,QRWLILHGXQGHUWKHFRPSDQLHV$FWEHFDPHDSSOLFDEOHWRWKHFRPSDQ\IRUSUHSDUDWLRQDQGSUHVHQWDWLRQ
RILWVILQDQFLDOVWDWHPHQWV7KHDGRSWLRQRIUHYLVHG6FKHGXOH9,GRHVQRWLPSDFWUHFRJQLWLRQDQGPHDVXUHPHQWSULQFLSOHV
IROORZHGIRUSUHSDUDWLRQRIILQDQFLDOVWDWHPHQWV+RZHYHULWKDVVLJQLILFDQWLPSDFWRQSUHVHQWDWLRQDQGGLVFORVXUHVPDGHLQWKH
ILQDQFLDOVWDWHPHQWV
E&XUUHQW1RQFXUUHQWFODVVLILFDWLRQRIDVVHWVOLDELOLWLHV
3XUVXDQWWRDSSOLFDELOLW\RI5HYLVHG6FKHGXOH9,QRWLILHGXQGHU7KH&RPSDQLHV$FWWKH&RPSDQ\KDVFODVVLILHGDOOLWV
DVVHWVOLDELOLWLHVLQWRFXUUHQWQRQFXUUHQWSRUWLRQEDVHGRQWKHWLPHIUDPHRIPRQWKVIURPWKHGDWHRIILQDQFLDOVWDWHPHQWV
$FFRUGLQJO\DVVHWVOLDELOLWLHVH[SHFWHGWREHUHDOLVHGVHWWOHGZLWKLQPRQWKVIURPWKHGDWHRIILQDQFLDOVWDWHPHQWVDUHFODVVLILHG
DVFXUUHQWDQGRWKHUDVVHWVOLDELOLWLHVDUHFODVVLILHGDVQRQFXUUHQW
F8VHRIHVWLPDWHV
7KHSUHSDUDWLRQRIILQDQFLDOVWDWHPHQWVLQFRQIRUPLW\ZLWK,QGLDQ*$$3UHTXLUHVWKHPDQDJHPHQWWRPDNHHVWLPDWHVDQG
DVVXPSWLRQVWKDWDIIHFWWKHUHSRUWHGDPRXQWVRIUHYHQXHVH[SHQVHVDVVHWVDQGOLDELOLWLHVDQGWKHGLVFORVXUHRIFRQWLQJHQW
OLDELOLWLHVDWWKHGDWHRIWKHILQDQFLDOVWDWHPHQWVDQGUHVXOWVRIRSHUDWLRQVGXULQJWKHUHSRUWLQJSHULRGHQG$OWKRXJKWKHVH
HVWLPDWHVDUHEDVHGRQWKHPDQDJHPHQW¶VEHVWNQRZOHGJHRIFXUUHQWHYHQWVDQGDFWLRQVDFWXDOUHVXOWVFRXOGGLIIHUIURPWKHVH
HVWLPDWHV$Q\UHYLVLRQWRWKHDFFRXQWLQJHVWLPDWHVDUHUHFRJQLVHGLQFXUUHQWDQGIXWXUH\HDUV
G7DQJLEOHIL[HGDVVHWV
)L[HGDVVHWVDUHVWDWHGDWFRVWOHVVDFFXPXODWHGGHSUHFLDWLRQDQGDFFXPXODWHGLPSDLUPHQWORVVHVLIDQ\7KHFRVWFRPSULVHVRI
SXUFKDVHSULFHDQGGLUHFWO\DWWULEXWDEOHFRVWIRUEULQJLQJWKHDVVHWWRLWVZRUNLQJFRQGLWLRQIRUWKHLQWHQGHGXVH$Q\WUDGH
GLVFRXQWVDQGUHEDWHVDUHGHGXFWHGLQDUULYLQJDWWKHSXUFKDVHSULFH
6XEVHTXHQWH[SHQGLWXUHUHODWHGWRDQLWHPRIIL[HGDVVHWLVDGGHGWRLWVERRNYDOXHRQO\LILWLQFUHDVHVWKHIXWXUHEHQHILWVIURPWKH
H[LVWLQJDVVHWEH\RQGLWVSUHYLRXVO\DVVHVVHGVWDQGDUGRISHUIRUPDQFH$OORWKHUH[SHQVHVRQH[LVWLQJIL[HGDVVHWVLQFOXGLQJGD\
WRGD\UHSDLUDQGPDLQWHQDQFHH[SHQGLWXUHDQGFRVWRIUHSODFLQJSDUWVDUHFKDUJHGWRWKH6WDWHPHQWRI3URILWDQG/RVVIRUWKH
SHULRGGXULQJZKLFKVXFKH[SHQGLWXUHLVLQFXUUHG
*DLQVRUORVVHVDULVLQJIURPGHUHFRJQLWLRQRIIL[HGDVVHWVDUHPHDVXUHGDVWKHGLIIHUHQFHEHWZHHQWKHQHWGLVSRVDOSURFHHGVDQG
WKHFDUU\LQJDPRXQWRIWKHDVVHWDQGDUHUHFRJQL]HGLQWKH6WDWHPHQWRI3URILWDQG/RVVZKHQWKHDVVHWLVGHUHFRJQLVHG
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH±;,,
1RWHVIRUPLQJSDUWRIWKHILQDQFLDOVWDWHPHQWVIRUWKHSHULRGHQGLQJ6HSWHPEHU
H,QWDQJLEOHIL[HGDVVHWV
,QWDQJLEOHIL[HGDVVHWVDUHVWDWHGDWFRVWOHVVDFFXPXODWHGDPRUWLVDWLRQDQGLPSDLUPHQWORVVHVLIDQ\&RVWFRPSULVHVWKHSXUFKDVH
SULFHDQGDQ\DWWULEXWDEOHFRVWRIEULQJLQJWKHDVVHWWRLWVZRUNLQJFRQGLWLRQIRULWVLQWHQGHGXVH
I'HSUHFLDWLRQRQWDQJLEOHIL[HGDVVHWV
'HSUHFLDWLRQRQIL[HGDVVHWVLVSURYLGHGRQ6WUDLJKW/LQH0HWKRG6/0E\XVLQJWKHUDWHVDUULYHGDWEDVHGRQWKHXVHIXOOLYHV
HVWLPDWHGE\WKHPDQDJHPHQWZKLFKDUHJUHDWHUWKDQRUHTXDOWRWKHUDWHVSUHVFULEHGXQGHUWKH6FKHGXOH;,9WRWKH&RPSDQLHV
$FW
/HDVHKROGLPSURYHPHQWVDUHDPRUWLVHGRQ6/0RYHUWKHSULPDU\SHULRGRIOHDVHVXEMHFWWRDPD[LPXPRIPRQWKV$OOIL[HG
DVVHWVLQGLYLGXDOO\FRVWLQJ5VRUOHVVDUHIXOO\GHSUHFLDWHGLQWKH\HDURILQVWDOODWLRQ'HSUHFLDWLRQRQDVVHWVDFTXLUHGVROG
GXULQJWKHSHULRGLVUHFRJQLVHGRQDSURUDWDEDVLVLQWKH6WDWHPHQWRI3URILWDQG/RVVWLOOWKHGDWHRIVDOHRUIURPWKHGDWHRI
DFTXLVLWLRQ
J'HSUHFLDWLRQRQLQWDQJLEOHDVVHWV
$PRUWLVDWLRQLVSURYLGHGRQ6WUDLJKW/LQH0HWKRGµ6/0¶ZKLFKUHIOHFWVWKHPDQDJHPHQW¶VHVWLPDWHRIWKHXVHIXOOLIHRIWKH
LQWDQJLEOHDVVHW7KHFRPSDQ\KDVXVHGWKHIROORZLQJUDWHWRSURYLGHGHSUHFLDWLRQRQWKHLQWDQJLEOHDVVHWV
&RPSXWHUVRIWZDUH
$PRUWLVDWLRQRQDVVHWVDFTXLUHGVROGGXULQJWKHSHULRGLVUHFRJQLVHGRQSURUDWDEDVLVLQWKH6WDWHPHQWRI3URILWDQG/RVVWLOOWKH
GDWHRIVDOHRUIURPWKHGDWHRIDFTXLVLWLRQ
K,PSDLUPHQWRIDVVHWV
7KHFRPSDQ\DVVHVVHVDWHDFKEDODQFHVKHHWGDWHLIWKHUHLVDQLQGLFDWLRQRILPSDLUPHQWRIDQ\DVVHW,IDQ\LQGLFDWLRQH[LVWVWKH
FRPSDQ\HVWLPDWHVWKHUHFRYHUDEOHDPRXQWRIWKHDVVHW7KHUHFRYHUDEOHDPRXQWRIDQDVVHWLVJUHDWHURIQHWVHOOLQJSULFHDQG
YDOXHLQXVHRIWKHDVVHW:KHUHWKHFDUU\LQJDPRXQWRIDQDVVHWLVPRUHWKDQLWVUHFRYHUDEOHDPRXQWWKHDVVHWLVFRQVLGHUHG
LPSDLUHGDQGLVZULWWHQGRZQWRLW¶VUHFRYHUDEOHDPRXQW7KHYDOXHLQXVHLVWKHHVWLPDWHGIXWXUHFDVKIORZVGLVFRXQWHGWR
WKHLUSUHVHQWYDOXHDWSUHWD[GLVFRXQWUDWHZKLFKUHIOHFWVFXUUHQWPDUNHWDVVHVVPHQWRIWKHWLPHYDOXHRIPRQH\DQGULVNVSHFLILF
WRWKHDVVHW
$IWHULPSDLUPHQWGHSUHFLDWLRQLVSURYLGHGRQWKHUHYLVHGFDUU\LQJDPRXQWRIWKHDVVHWRYHULWVUHPDLQLQJXVHIXOOLIH
$QDVVHVVPHQWLVPDGHDWHDFK%DODQFH6KHHWGDWHDERXWH[LVWHQFHRUGHFUHDVHRISUHYLRXVO\UHFRJQLVHGLPSDLUPHQWORVVHV,I
VXFKLQGLFDWLRQH[LVWVWKHFRPSDQ\HVWLPDWHVWKHDVVHW¶VUHFRYHUDEOHDPRXQW$SUHYLRXVO\UHFRJQLVHGLPSDLUPHQWORVVLV
LQFUHDVHGRUUHYHUVHGGHSHQGLQJRQWKHFKDQJHVLQWKHFLUFXPVWDQFHV+RZHYHUWKHFDUU\LQJYDOXHDIWHUUHYHUVDOLVQRWLQFUHDVHG
EH\RQGWKHFDUU\LQJYDOXHWKDWZRXOGKDYHSUHYDLOHGE\FKDUJLQJXVXDOGHSUHFLDWLRQLIWKHUHZDVQRLPSDLUPHQW
L&DSLWDODGYDQFHV
&DSLWDODGYDQFHVDUHDGYDQFHVJLYHQIRUSURFXUHPHQWRIIL[HGDVVHWV&RPSDQ\GRHVQRWH[SHFWWRUHDOLVHWKHPLQFDVKDQGRYHUD
SHULRGRIWLPHWKHVHDGYDQFHVJHWFRQYHUWHGLQWRIL[HGDVVHWVZKLFKDUHQRQFXUUHQWE\QDWXUH7KHUHIRUHLUUHVSHFWLYHRIZKHQWKH
IL[HGDVVHWVDUHH[SHFWHGWREHUHFHLYHGVXFKDGYDQFHVDUHGLVFORVHGXQGHUORQJWHUPORDQVDQGDGYDQFHV
M%RUURZLQJFRVWV
%RUURZLQJFRVWLQFOXGHVLQWHUHVWDQGH[FKDQJHGLIIHUHQFHVDULVLQJIURPIRUHLJQFXUUHQF\ERUURZLQJVWRWKHH[WHQWWKH\DUH
UHJDUGHGDVDQDGMXVWPHQWWRWKHLQWHUHVWFRVW$QFLOODU\DQGRWKHUERUURZLQJFRVWVDUHFKDUJHGWRWLOOWKHGDWHRIVDOHRUIURPWKH
GDWHRIDFTXLVLWLRQLQWKHSHULRGLQZKLFKWKH\DUHLQFXUUHG
N,QYHVWPHQWV
,QYHVWPHQWVLQWHQGHGWREHKHOGIRUQRWPRUHWKDQRQH\HDUIURPWKHGDWHRQZKLFKVXFKLQYHVWPHQWVDUHPDGHDUHFODVVLILHGDV
FXUUHQWLQYHVWPHQWV$OORWKHULQYHVWPHQWVDUHFODVVLILHGDVQRQFXUUHQWLQYHVWPHQWV
&XUUHQWLQYHVWPHQWVDUHFDUULHGLQWKHILQDQFLDOVWDWHPHQWVDWORZHURIFRVWDQGIDLUYDOXHGHWHUPLQHGRQDQLQGLYLGXDOLQYHVWPHQW
EDVLV1RQFXUUHQWLQYHVWPHQWVDUHFDUULHGDWFRVW+RZHYHUSURYLVLRQIRUGLPLQXWLRQLQYDOXHLVPDGHWRUHFRJQLVHDGHFOLQH
RWKHUWKDQWHPSRUDU\LQWKHYDOXHRIVXFKLQYHVWPHQWV
2QGLVSRVDORIDQLQYHVWPHQWWKHGLIIHUHQFHEHWZHHQLWVFDUU\LQJDPRXQWDQGQHWGLVSRVDOSURFHHGVLVFKDUJHGRUFUHGLWHGWRWKH
6WDWHPHQWRI3URILWDQG/RVV
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH±;,,
1RWHVIRUPLQJSDUWRIWKHILQDQFLDOVWDWHPHQWVIRUWKHSHULRGHQGLQJ6HSWHPEHU
O3URYLVLRQZULWHRIIRIDVVHWV
1RQSHUIRUPLQJORDQVDUHZULWWHQRIISURYLGHGIRUDVSHUHVWLPDWHVRIPDQDJHPHQWVXEMHFWWRWKHPLQLPXPSURYLVLRQUHTXLUHG
DVSHU1RQ%DQNLQJ)LQDQFLDO'HSRVLW$FFHSWLQJRU+ROGLQJ&RPSDQLHV3UXGHQWLDO1RUPV5HVHUYH%DQN'LUHFWLRQV
3URYLVLRQRQVWDQGDUGDVVHWVLVPDGHDVUHTXLUHGXQGHU5HVHUYH%DQNRI,QGLD5%,QRWLILFDWLRQ1R'1%6&*086
GDWHG-DQXDU\
P/RDQV
/RDQVDUHVWDWHGDWWKHDPRXQWDGYDQFHGLQFOXGLQJILQDQFHFKDUJHVDFFUXHGDQGH[SHQVHVUHFRYHUDEOHDVUHGXFHGE\WKHDPRXQWV
UHFHLYHGXSWRWKHGDWHRIEDODQFHVKHHWDQGORDQVVHFXULWLVHG
Q/HDVHV
:KHUHWKH&RPSDQ\LVWKHOHVVRU
$VVHWVJLYHQRQRSHUDWLQJOHDVHVDUHLQFOXGHGLQIL[HGDVVHWV/HDVHLQFRPHLVUHFRJQLVHGLQWKH6WDWHPHQWRI3URILWDQG/RVVRQD
VWUDLJKWOLQHEDVLVRYHUWKHOHDVHWHUP&RVWVLQFOXGLQJGHSUHFLDWLRQDUHUHFRJQLVHGDVDQH[SHQVHLQWKH6WDWHPHQWRI3URILWDQG
/RVV,QLWLDOGLUHFWFRVWVVXFKDVOHJDOFRVWVEURNHUDJHFRVWVHWFDUHUHFRJQLVHGLPPHGLDWHO\LQWKH6WDWHPHQWRI3URILWDQG/RVV
:KHUHWKH&RPSDQ\LVWKHOHVVHH
/HDVHVZKHUHWKHOHVVRUHIIHFWLYHO\UHWDLQVVXEVWDQWLDOO\DOOWKHULVNVDQGEHQHILWVRIRZQHUVKLSRIWKHOHDVHGWHUPDUHFODVVLILHGDV
RSHUDWLQJOHDVHV2SHUDWLQJOHDVHSD\PHQWVDUHUHFRJQLVHGDVDQH[SHQVHLQWKH6WDWHPHQWRI3URILWDQG/RVVRQDVWUDLJKWOLQH
EDVLVRYHUWKHOHDVHWHUP
R5HYHQXHUHFRJQLWLRQ
5HYHQXHLVUHFRJQL]HGWRWKHH[WHQWWKDWLWLVSUREDEOHWKDWWKHHFRQRPLFEHQHILWVZLOOIORZWRWKHFRPSDQ\DQGWKHUHYHQXHFDQEH
UHOLDEO\PHDVXUHG7KHUHYHQXHUHFRJQLVDWLRQDUHDVXQGHU
L,QFRPHIURPILQDQFLQJDFWLYLWLHVLVUHFRJQLVHGRQWKHEDVLVRILQWHUQDOUDWHRIUHWXUQ
LL$GGLWLRQDOILQDQFHFKDUJHVDGGLWLRQDOLQWHUHVWDUHWUHDWHGWRDFFUXHRQUHDOLVDWLRQGXHWRXQFHUWDLQW\RILWVUHDOLVDWLRQ
LLL*DLQDULVLQJRQVHFXULWL]DWLRQGLUHFWDVVLJQPHQWRIDVVHWVLVUHFRJQLVHGRYHUWKHWHQXUHRIDJUHHPHQWVDVSHUJXLGHOLQHRQ
VHFXULWLVDWLRQRIVWDQGDUGDVVHWVLVVXHGE\5%,/RVVRUH[SHQGLWXUHLQUHVSHFWRIVHFXULWLVDWLRQDVVLJQPHQWLIDQ\LVUHFRJQLVHG
XSIURQW
LY7KHSUXGHQWLDOQRUPVIRULQFRPHUHFRJQLWLRQSUHVFULEHGXQGHU1RQ%DQNLQJ)LQDQFLDO'HSRVLW$FFHSWLQJRU+ROGLQJ
&RPSDQLHV3UXGHQWLDO1RUPV5HVHUYH%DQN'LUHFWLRQVDUHIROORZHG
Y,QFRPHIURPVHUYLFHVLVUHFRJQLVHGDVSHUWKHWHUPVRIWKHFRQWUDFWRQDFFUXDOEDVLV
YL,QWHUHVW,QFRPHRQGHSRVLWDFFRXQWVZLWKEDQNVLVUHFRJQLVHGRQDWLPHSURSRUWLRQEDVLVWDNLQJLQWRDFFRXQWWKHDPRXQW
RXWVWDQGLQJDQGWKHUDWHDSSOLFDEOH
YLL'LYLGHQGLVUHFRJQLVHGDVLQFRPHZKHQULJKWWRUHFHLYHSD\PHQWLVHVWDEOLVKHGE\WKHGDWHRIEDODQFHVKHHW
YLLL3URILWORVVRQVDOHRILQYHVWPHQWVLVUHFRJQLVHGDWWKHWLPHRIDFWXDOVDOHUHGHPSWLRQ
S)RUHLJQFXUUHQF\WUDQVODWLRQ
)RUHLJQFXUUHQF\WUDQVDFWLRQVDQGEDODQFHV
,QLWLDOUHFRJQLWLRQ)RUHLJQFXUUHQF\WUDQVDFWLRQVDUHUHFRUGHGLQ,QGLDQUXSHHE\DSSO\LQJWRWKHIRUHLJQFXUUHQF\DPRXQWWKH
H[FKDQJHUDWHEHWZHHQWKH,QGLDQUXSHHDQGWKHIRUHLJQFXUUHQF\DWWKHGDWHRIWKHWUDQVDFWLRQ
&RQYHUVLRQ)RUHLJQFXUUHQF\PRQHWDU\LWHPVDUHUHWUDQVODWHGWR,QGLDQUXSHHVE\XVLQJWKHH[FKDQJHUDWHSUHYDLOLQJDWWKH
%DODQFH6KHHWGDWH
([FKDQJHGLIIHUHQFHV$OOH[FKDQJHGLIIHUHQFHVDUHGHDOWZLWKLQWKH6WDWHPHQWRI3URILWDQG/RVV
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH±;,,
1RWHVIRUPLQJSDUWRIWKHILQDQFLDOVWDWHPHQWVIRUWKHSHULRGHQGLQJ6HSWHPEHU
T,QFRPHWD[HV
7D[H[SHQVHFRPSULVHVRIFXUUHQWWD[DQGGHIHUUHGWD[&XUUHQWLQFRPHWD[LVPHDVXUHGDWWKHDPRXQWH[SHFWHGWREHSDLGWRWKH
WD[DXWKRULWLHVLQDFFRUGDQFHZLWKWKH,QGLDQ,QFRPH7D[$FW'HIHUUHGLQFRPHWD[HVUHIOHFWVWKHLPSDFWRIFXUUHQW\HDU
WLPLQJGLIIHUHQFHVEHWZHHQWD[DEOHLQFRPHDQGDFFRXQWLQJLQFRPHIRUWKHSHULRGDQGUHYHUVDORIWLPLQJGLIIHUHQFHVRIHDUOLHU
\HDUV'HIHUUHGWD[LVPHDVXUHGEDVHGRQWKHWD[UDWHVDQGWKHWD[ODZVHQDFWHGRUVXEVWDQWLYHO\HQDFWHGDWWKHEDODQFHVKHHWGDWH
'HIHUUHGWD[DVVHWVDUHUHFRJQLVHGRQO\WRWKHH[WHQWWKHUHLVUHDVRQDEOHFHUWDLQW\WKDWVXIILFLHQWIXWXUHWD[DEOHLQFRPHZLOOEH
DYDLODEOHDJDLQVWZKLFKVXFKGHIHUUHGWD[DVVHWVFDQEHUHDOLVHG,QVLWXDWLRQVZKHUHWKH&RPSDQ\KDVXQDEVRUEHGGHSUHFLDWLRQRU
FDUU\IRUZDUGWD[ORVVHVDOOGHIHUUHGWD[DVVHWVDUHUHFRJQLVHGRQO\LIWKHUHLVYLUWXDOFHUWDLQW\VXSSRUWHGE\FRQYLQFLQJHYLGHQFH
WKDWWKH\FDQEHUHDOLVHGDJDLQVWIXWXUHWD[DEOHSURILWV
7KHFDUU\LQJFRVWRIWKHGHIHUUHGWD[DVVHWVDUHUHYLHZHGDWHDFKEDODQFHVKHHWGDWH7KH&RPSDQ\ZULWHVGRZQWKHFDUU\LQJ
DPRXQWRIDGHIHUUHGWD[DVVHWWRWKHH[WHQWLWLVQRORQJHUUHDVRQDEO\FHUWDLQRUYLUWXDOO\FHUWDLQDVWKHFDVHPD\EHWKDWVXIILFLHQW
IXWXUHWD[DEOHLQFRPHZLOOEHDYDLODEOHDJDLQVWZKLFKGHIHUUHGWD[DVVHWFDQEHUHDOLVHG$Q\VXFKZULWHGRZQLVUHYHUVHGWRWKH
H[WHQWLWEHFRPHVUHDVRQDEO\FHUWDLQRUYLUWXDOO\FHUWDLQDVWKHFDVHPD\EHWKDWVXIILFLHQWIXWXUHWD[DEOHLQFRPHZLOOEH
DYDLODEOH
7KHXQUHFRJQLVHGGHIHUUHGWD[DVVHWVDUHUHDVVHVVHGE\WKH&RPSDQ\DWHDFKEDODQFHVKHHWGDWHDQGDUHUHFRJQLVHGWRWKHH[WHQW
LWKDVEHFRPHUHDVRQDEO\FHUWDLQRUYLUWXDOO\FHUWDLQDVWKHFDVHPD\EHWKDWVXIILFLHQWIXWXUHWD[DEOHLQFRPHZLOOEHDYDLODEOH
DJDLQVWZKLFKVXFKGHIHUUHGWD[DVVHWVFDQEHUHDOLVHG
U6HJPHQWUHSRUWLQJ
7KHFRPSDQ\SUHSDUHVLWVVHJPHQWLQIRUPDWLRQLQFRQIRUPLW\ZLWKWKHDFFRXQWLQJSROLFLHVDGRSWHGIRUSUHSDULQJDQGSUHVHQWLQJ
WKHILQDQFLDOVWDWHPHQWVRIWKHFRPSDQ\DVDZKROH7KHVHJPHQWVDUHLGHQWLILHGEDVHGRQWKHQDWXUHRISURGXFWPDUNHWVHUYHG
7KHLQFRPHH[SHQVHVZKLFKDUHQRWDOORFDWHGWRDQ\UHSRUWDEOHVHJPHQWVDUHUHSRUWHGDVXQDOORFDEOHVHJPHQW
V(PSOR\HHVWRFNFRPSHQVDWLRQFRVW
7KHPHDVXUHPHQWDQGGLVFORVXUHRIWKHHPSOR\HHVKDUHEDVHGSD\PHQWSODQVLVGRQHLQDFFRUGDQFHZLWKWKH6(%,(PSOR\HH
6WRFN2SWLRQ6FKHPHDQG(PSOR\HH6WRFN3XUFKDVH6FKHPH*XLGHOLQHVDQGWKH*XLGDQFH1RWHRQ$FFRXQWLQJIRU
(PSOR\HH6KDUHEDVHG3D\PHQWVLVVXHGE\7KH,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWVRI,QGLD,&$,7KHFRPSDQ\PHDVXUHVFRVW
UHODWLQJWRHPSOR\HHVVWRFNRSWLRQE\LQWULQVLFYDOXHPHWKRG&RPSHQVDWLRQH[SHQVHVLVDPRUWLVHGRQVWUDLJKWOLQHPHWKRGRYHU
WKHSHULRGRIYHVWLQJRIRSWLRQV
W5HWLUHPHQWDQGRWKHUHPSOR\HHEHQHILWV
3URYLGHQW)XQG
$OOWKHHPSOR\HHVRIWKH&RPSDQ\DUHHQWLWOHGWRUHFHLYHEHQHILWVXQGHUWKH3URYLGHQW)XQGDGHILQHGFRQWULEXWLRQSODQLQZKLFK
ERWKWKHHPSOR\HHDQGWKH&RPSDQ\FRQWULEXWHPRQWKO\DWDVWLSXODWHGUDWH7KH&RPSDQ\KDVQROLDELOLW\IRUIXWXUH3URYLGHQW
)XQGEHQHILWVRWKHUWKDQLWVDQQXDOFRQWULEXWLRQDQGUHFRJQLVHVVXFKFRQWULEXWLRQVDVDQH[SHQVHLQWKH\HDULWLVLQFXUUHG
*UDWXLW\
7KH&RPSDQ\SURYLGHVIRUJUDWXLW\DGHILQHGEHQHILWUHWLUHPHQWSODQFRYHULQJDOOHPSOR\HHV7KHSODQSURYLGHVIRUOXPSVXP
SD\PHQWVWRHPSOR\HHVXSRQGHDWKZKLOHLQHPSOR\PHQWRURQVHSDUDWLRQIURPHPSOR\PHQWDIWHUVHUYLQJIRUWKHVWLSXODWHG\HDU
PHQWLRQHGXQGHUµ7KH3D\PHQWRI*UDWXLW\$FW¶7KH&RPSDQ\DFFRXQWVIRUOLDELOLW\RIIXWXUHJUDWXLW\EHQHILWVEDVHGRQ
DQH[WHUQDODFWXDULDOYDOXDWLRQRQSURMHFWHGXQLWFUHGLWPHWKRGFDUULHGRXWIRUDVVHVVLQJOLDELOLW\DVDWWKHUHSRUWLQJGDWH$FWXDULDO
JDLQORVVHVDUHLPPHGLDWHO\WDNHQWR6WDWHPHQWRI3URILWDQG/RVVDQGDUHQRWGHIHUUHG
/HDYH%HQHILWV
$FFXPXODWHGOHDYHZKLFKLVH[SHFWHGWREHXWLOL]HGZLWKLQWKHQH[WWZHOYHPRQWKVLVWUHDWHGDVVKRUWWHUPHPSOR\HHEHQHILW7KH
&RPSDQ\PHDVXUHVWKHH[SHFWHGFRVWRIVXFKDEVHQFHVDVWKHDGGLWLRQDODPRXQWWKDWLWH[SHFWVWRSD\DVDUHVXOWRIWKHXQXVHG
HQWLWOHPHQWWKDWKDVDFFXPXODWHGDWWKHUHSRUWLQJGDWH
7KH&RPSDQ\WUHDWVDFFXPXODWHGOHDYHH[SHFWHGWREHFDUULHGIRUZDUGEH\RQGWZHOYHPRQWKVDVORQJWHUPHPSOR\HHEHQHILWIRU
PHDVXUHPHQWSXUSRVHV6XFKORQJWHUPFRPSHQVDWHGDEVHQFHVDUHSURYLGHGIRUEDVHGRQWKHDFWXDULDOYDOXDWLRQXVLQJWKH
SURMHFWHGXQLWFUHGLWPHWKRGDWWKHUHSRUWLQJGDWH$FWXDULDOJDLQVORVVHVDUHLPPHGLDWHO\WDNHQWRWKH6WDWHPHQWRI3URILWDQG/RVV
DQGDUHQRWGHIHUUHG
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH±;,,
1RWHVIRUPLQJSDUWRIWKHILQDQFLDOVWDWHPHQWVIRUWKHSHULRGHQGLQJ6HSWHPEHU
X(DUQLQJV3HU6KDUH
%DVLFHDUQLQJSHUVKDUHLVFDOFXODWHGE\GLYLGLQJWKHQHWSURILWRUORVVIRUWKHSHULRGDWWULEXWDEOHWRHTXLW\VKDUHKROGHUVDIWHU
GHGXFWLQJDWWULEXWDEOHWD[HVE\WKHZHLJKWHGDYHUDJHQXPEHURIHTXLW\VKDUHVRXWVWDQGLQJGXULQJWKHSHULRG
)RUWKHSXUSRVHRIFDOFXODWLQJGLOXWHGHDUQLQJVSHUVKDUHWKHQHWSURILWRUORVVIRUWKHSHULRGDWWULEXWDEOHWRHTXLW\VKDUHKROGHUV
DQGWKHZHLJKWHGDYHUDJHQXPEHURIVKDUHVRXWVWDQGLQJGXULQJWKHSHULRGDUHDGMXVWHGIRUWKHHIIHFWVRIDOOGLOXWLYHSRWHQWLDO
HTXLW\VKDUHV
Y([SHQVHVRQGHSRVLWVGHEHQWXUHV
([SHQVHVIRUSULYDWHSODFHPHQWRIGHEHQWXUHVVXERUGLQDWHGGHEWVGHSRVLWVDUHFKDUJHGWR6WDWHPHQWRI3URILWDQG/RVVLQWKH\HDU
LQZKLFKWKH\DUHLQFXUUHG
([SHQVHVLQFXUUHGRQSXEOLFLVVXHRIGHEHQWXUHVRWKHUWKDQEURNHUDJHDUHFKDUJHGRIIRQVWUDLJKWOLQHEDVLVRYHUWKHZHLJKWHG
DYHUDJHWHQRURIWKHXQGHUO\LQJGHEHQWXUHV7KHEURNHUDJHLQFXUUHGRQLVVXHRIGHEHQWXUHLVWUHDWHGDVH[SHQGLWXUHLQWKHSHULRGLQ
ZKLFKLWLVLQFXUUHG
Z3URYLVLRQV
$SURYLVLRQLVUHFRJQLVHGZKHQWKHFRPSDQ\KDVDSUHVHQWREOLJDWLRQDVDUHVXOWRISDVWHYHQW,WLVSUREDEOHWKDWDQRXWIORZRI
UHVRXUFHVZLOOEHUHTXLUHGWRVHWWOHWKHREOLJDWLRQDQGDUHOLDEOHHVWLPDWHFDQEHPDGHRIWKHDPRXQWRIWKHREOLJDWLRQ3URYLVLRQV
DUHQRWGLVFRXQWHGWRWKHLUSUHVHQWYDOXHDQGDUHGHWHUPLQHGEDVHGRQWKHEHVWHVWLPDWHUHTXLUHGWRVHWWOHWKHREOLJDWLRQDWWKH
EDODQFHVKHHWGDWH7KHVHDUHUHYLHZHGDWHDFKEDODQFHVKHHWGDWHDQGDGMXVWHGWRUHIOHFWWKHFXUUHQWEHVWHVWLPDWHV
[&DVKDQGFDVKHTXLYDOHQWV
&DVKDQGFDVKHTXLYDOHQWVDUHKHOGIRUWKHSXUSRVHRIPHHWLQJVKRUWWHUPFDVKFRPPLWPHQWV&DVKHTXLYDOHQWVDUHVKRUWWHUP
KLJKO\OLTXLGLQYHVWPHQWVWKDWDUHUHDGLO\FRQYHUWLEOHLQWRNQRZQDPRXQWVRIFDVKDQGZKLFKDUHVXEMHFWWRDQLQVLJQLILFDQWULVNRI
FKDQJHVLQYDOXH&DVKDQGFDVKHTXLYDOHQWVLQFOXGHFDVKLQKDQGFDVKDWEDQNFKHTXHLQKDQGUHPLWWDQFHVLQWUDQVLWDQGVKRUW
WHUPLQYHVWPHQWVZLWKDQRULJLQDOPDWXULW\SHULRGRIWKUHHPRQWKVRUOHVV
\'HULYDWLYHLQVWUXPHQWV
,QDFFRUGDQFHZLWKWKH,&$,JXLGHOLQHVDQGRQSULQFLSOHRISUXGHQFHGHULYDWLYHFRQWUDFWVRWKHUWKDQIRUHLJQFXUUHQF\IRUZDUG
FRQWUDFWVFRYHUHGXQGHU$6DUHPDUNHGWRPDUNHWRQDSRUWIROLREDVLVDQGWKHQHWORVVLIDQ\DIWHUFRQVLGHULQJWKHRIIVHWWLQJ
HIIHFWRIJDLQRQWKHXQGHUO\LQJKHGJHGLWHPLVFKDUJHGWRWKH6WDWHPHQWRI3URILWDQG/RVV+RZHYHUQHWJDLQLIDQ\DIWHU
FRQVLGHULQJWKHRIIVHWWLQJHIIHFWRIORVVRQWKHXQGHUO\LQJKHGJHGLWHPLVLJQRUHG
]&RQWLQJHQWOLDELOLWLHV
$FRQWLQJHQWOLDELOLW\LVDSRVVLEOHREOLJDWLRQWKDWDULVHVIURPSDVWHYHQWVZKRVHH[LVWHQFHZLOOEHFRQILUPHGE\WKHRFFXUUHQFHRU
QRQRFFXUUHQFHRIRQHRUPRUHXQFHUWDLQIXWXUHHYHQWVZKLFKDUHEH\RQGWKHFRQWURORIWKHFRPSDQ\$FRQWLQJHQWOLDELOLW\DOVR
LQFOXGHVDSUHVHQWREOLJDWLRQWKDWLVQRWUHFRJQLVHGEHFDXVHLWLVQRWSUREDEOHWKDWDQRXWIORZRIUHVRXUFHVZLOOEHUHTXLUHGWR
VHWWOHWKHREOLJDWLRQ$FRQWLQJHQWOLDELOLW\DOVRDULVHVZKHUHDOLDELOLW\FDQQRWEHPHDVXUHGUHOLDEO\7KHFRPSDQ\GRHVQRW
UHFRJQLVHDFRQWLQJHQWOLDELOLW\LQWKHDFFRXQWVEXWGLVFORVHVLWVH[LVWHQFHLQWKHILQDQFLDOVWDWHPHQWV
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH±;,,
6KDUHFDSLWDO
` LQODFV
$VDW6HSW
3DUWLFXODUV
$XWKRULVHG
0DUFKHTXLW\VKDUHVRI`HDFK
HTXLW\VKDUHVRI5VHDFK
0DUFKFXPXODWLYHUHGHHPDEOHSUHIHUHQFHVKDUHVRI`
HDFK
$VDW0DUFK
,VVXHGVXEVFULEHGDQGIXOO\SDLGXS
(TXLW\VKDUHV
0DUFKVKDUHVRI`HDFK
7RWDO,VVXHG6XEVFULEHGDQGIXOO\3DLGXSVKDUHFDSLWDO
'XULQJWKHILQDQFLDO\HDUHTXLW\VKDUHVRIWKHFRPSDQ\ZHUHLVVXHGDOORWWHGWR6KULUDP&DSLWDO/LPLWHGIRU
FDVKDWDVXEVFULSWLRQSULFHRI`SHUHTXLW\VKDUHLQFOXGHVDSUHPLXPRI`SHUHTXLW\VKDUHEHLQJWKHSULFHKLJKHU
WKDQWKHSULFHGHWHUPLQHGXQGHUFKDSWHU9,,RIWKH6HFXULWLHV([FKDQJH%RDUGRI,QGLD,VVXHRI&DSLWDODQG'LVFORVXUH
5HTXLUHPHQWV5HJXODWLRQV
5HFRQFLOLDWLRQRIWKHVKDUHVRXWVWDQGLQJDWWKHEHJLQQLQJDQGDWWKHHQGRIWKHUHSRUWLQJSHULRG
(TXLW\VKDUHV
3DUWLFXODUV
$WWKHEHJLQQLQJRIWKH\HDU
,VVXHGGXULQJWKH\HDU(623>5HIHUQRWH@
,VVXHGSXUVXDQWWRPHUJHU
&RQYHUVLRQRIZDUUDQWV>5HIHUQRWH@
2XWVWDQGLQJ
$VDW6HSWHPEHU
$VDW0DUFK
1XPEHU
` LQODFV
1XPEHU
` LQODFV
7KHFRPSRVLWH6FKHPHRI$UUDQJHPHQW³6FKHPH´DPRQJ6KULUDP5HWDLO+ROGLQJV3ULYDWH/LPLWHG³65+3/´6KULUDP
(QWHUSULVH+ROGLQJV3ULYDWH/LPLWHG³6(+3/´DQG6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG6&8)XQGHUVHFWLRQWR
UHDGZLWK6HFWLRQRIWKH&RPSDQLHV$FWZDVDSSURYHGE\WKH+RQ¶EOH+LJK&RXUWRI0DGUDVRQ-XQH
7KH6FKHPHFDPHLQWRHIIHFWRQ$XJXVWZLWKILOLQJRI)RUPZLWK5HJLVWUDURI&RPSDQLHV&KHQQDLRQWKHVDPHGDWH
7KHVZDSUDWLRZDVUHYLVHGIURPWRHTXLW\VKDUHVRI5VHDFKRI6&8)DJDLQVWHTXLW\VKDUHVRI`
HDFKRI&RQVROLGDWHG65+3/GXHWRLQFUHDVHLQFDVKDQGFDVKHTXLYDOHQWRI&RQVROLGDWHG65+3/DVSHUSURYLVLRQRIFODXVH
RIWKH6FKHPHZLWKWKHVLJQLQJRIUHYLVHGVZDSUDWLROHWWHUE\6&8)ZLWK&RQVROLGDWHG65+3/RQ$XJXVW
$FFRUGLQJO\RQ$XJXVWHTXLW\VKDUHVHTXLW\VKDUHVRI5XSHHVHDFKIXOO\SDLGRI6&8)ZHUHDOORWWHG
WRWKHVKDUHKROGHUVRI&RQVROLGDWHG65+3/ZKLFKUHVXOWHGLQLQFUHDVHLQSDLGXSVKDUHFDSLWDORI6&8)E\HTXLW\
VKDUHVRI` HDFK
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH±;,,
7KH1DWLRQDO6WRFN([FKDQJHRI,QGLD/LPLWHG%6(/LPLWHGDQG0DGUDV6WRFN([FKDQJH/LPLWHGDSSURYHGWKHOLVWLQJRIWKHVH
VKDUHVRQ6HSWHPEHU2FWREHUDQG6HSWHPEHUUHVSHFWLYHO\
7HUPVULJKWVDWWDFKHGWRHTXLW\VKDUHV
7KHFRPSDQ\KDVRQO\RQHFODVVRI
VXEVFULEHGSDLGXS
HTXLW\VKDUHVKDYLQJDSDUYDOXHRI` SHUVKDUH(DFKKROGHURIWKH
HTXLW\VKDUHVLVHQWLWOHGWRRQHYRWHSHUVKDUH7KHFRPSDQ\GHFODUHVDQGSD\VGLYLGHQGVLQ,QGLDQUXSHHV7KHGLYLGHQGSURSRVHG
E\WKH%RDUGRI'LUHFWRUVLVVXEMHFWWRDSSURYDORIWKHVKDUHKROGHUVLQWKHHQVXLQJ$QQXDO*HQHUDO0HHWLQJ
)RUWKHSHULRGHQGHG6HSWHPEHUWKHDPRXQWRILQWHULPGLYLGHQGSHUHTXLW\VKDUHUHFRJQLVHGDVGLVWULEXWLRQVWRHTXLW\
VKDUHKROGHUVLV`0DUFK`LQFOXGLQJLQWHULPGLYLGHQG
,QWKHHYHQWRIOLTXLGDWLRQRIWKHFRPSDQ\WKHKROGHUVRIHTXLW\VKDUHVZLOOEHHQWLWOHGWRUHFHLYHUHPDLQLQJDVVHWVRIWKH
FRPSDQ\DIWHUGLVWULEXWLRQRIDOOSUHIHUHQWLDODPRXQWV7KHGLVWULEXWLRQZLOOEHLQSURSRUWLRQWRWKHQXPEHURIHTXLW\VKDUHVKHOG
E\WKHVKDUHKROGHUV
'HWDLOVRIVKDUHKROGHUVKROGLQJPRUHWKDQVKDUHVLQWKHFRPSDQ\
$VDW6HSWHPEHU
1RRI6KDUHV
RI+ROGLQJ
KHOG
1DPHRIWKHVKDUHKROGHUV
(TXLW\VKDUHRI``HDFKIXOO\SDLG
6KULUDP5HWDLO+ROGLQJ3YW/WG
$VDW0DUFK
1RRI6KDUHV
RI+ROGLQJ
KHOG
6KULUDP&DSLWDO/WG
1RUZHVW9HQWXUH3DUWQHUV;),,0DXULWLXV
73*,QGLD,QYHVWPHQW,1&
$VSHUUHFRUGVRIWKHFRPSDQ\LQFOXGLQJWKHUHJLVWHURIVKDUHKROGHUVPHPEHUVDQGRWKHUGHFODUDWLRQVUHFHLYHGIURP
VKDUHKROGHUVPHPEHUVUHJDUGLQJEHQHILFLDOLQWHUHVWWKHDERYHVKDUHKROGLQJUHSUHVHQWVERWKOHJDODQGEHQHILFLDORZQHUVKLSVRI
VKDUHV
6KDUHVUHVHUYHGIRULVVXHXQGHURSWLRQ
L)RUGHWDLOVRIVKDUHUHVHUYHGIRULVVXHXQGHUWKHHPSOR\HHVVWRFNRSWLRQVFKHPH(623>5HIHUQRWH@
LL3UHIHUHQWLDOLVVXHRIVKDUHZDUUDQWV
'XULQJWKHILQDQFLDO\HDUZDUUDQWVKDYHEHHQFRQYHUWHGWRHTXLW\VKDUHVRXWRIWKHWRWDOZDUUDQWV
LVVXHGLQILQDQFLDO\HDUDWWKHH[FLVHSULFHRI`HDFK
)RUWKHSHULRGHQGHG6HSWHPEHUZDUUDQWVKDYHEHHQFRQYHUWHGWRHTXLW\VKDUHV
7KHFRPSDQ\LVVXHGHTXLW\VKDUHV0DUFKGXULQJWKHSHULRGRIILYH\HDUVLPPHGLDWHO\
SUHFHGLQJWKHUHSRUWLQJGDWHRQH[HUFLVHRIRSWLRQVJUDQWHGXQGHU(623ZKHUHLQDSDUWRIWKHFRQVLGHUDWLRQZDVUHFHLYHGLQIRUP
RIHPSOR\HHVHUYLFH
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH±;,,
5HVHUYHVVXUSOXV
3DUWLFXODUV
&DSLWDOUHVHUYHV
$GGWUDQVIHUIURP6WDWHPHQWRI3URILWDQG/RVVRQDFFRXQWRIUHYHUVHPHUJHUZLWK
6KULUDP5HWDLO+ROGLQJV3YW/WG
$VDW6HSW
` LQODFV
$VDW0DUFK
6HFXULWLHVSUHPLXP
2SHQLQJEDODQFH
$GGVHFXULWLHVSUHPLXPFUHGLWHGGXULQJWKH\HDU
&ORVLQJEDODQFH
'HEHQWXUHUHGHPSWLRQUHVHUYH
2SHQLQJEDODQFH
$GGWUDQVIHUIURP6WDWHPHQWRI3URILWDQG/RVV
&ORVLQJEDODQFH
*HQHUDOUHVHUYH
2SHQLQJEDODQFH
&ORVLQJEDODQFH
6XUSOXVLQWKH6WDWHPHQWRI3URILWDQG/RVV
2SHQLQJEDODQFH
$GGQHWSURILWIRUWKH\HDU
3URSRVHGILQDOHTXLW\GLYLGHQG
7D[RQSURSRVHGHTXLW\GLYLGHQG
7UDQVIHUWRVWDWXWRU\UHVHUYHLQSXUVXDQWWRVHFWLRQ,&RIWKH5%,DFW
&DSLWDOUHGHPSWLRQUHVHUYH
&ORVLQJEDODQFH
6WRFNRSWLRQVRXWVWDQGLQJ
(PSOR\HHVWRFNRSWLRQRXWVWDQGLQJ
/HVVWUDQVIHUWRGHIHUUHGHPSOR\HHFRPSHQVDWLRQRXWVWDQGLQJ
&ORVLQJEDODQFH
6WDWXWRU\UHVHUYHLQSXUVXDQWWRVHFWLRQ,&RIWKH5%,DFW
2SHQLQJEDODQFH
$GGWUDQVIHUIURP6WDWHPHQWRI3URILWDQG/RVV
$GGWUDQVIHUIURP6WDWHPHQWRI3URILWDQG/RVV
/HVV$SSURSULDWLRQV
,QWHULPGLYLGHQGV
7D[RQLQWHULPGLYLGHQG
7UDQVIHUWRJHQHUDOUHVHUYH
7UDQVIHUWRGHEHQWXUHUHGHPSWLRQUHVHUYH
1HWVXUSOXVLQWKH6WDWHPHQWRI3URILWDQG/RVV
7RWDO
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH±;,,
/RQJWHUPERUURZLQJV
` LQODFV
1RQFXUUHQWSRUWLRQ
$VDW6HSW
$VDW0DUFK
&XUUHQWPDWXULWLHV
$VDW6HSW
$VDW0DUFK
3ULYDWHO\SODFHGUHGHHPDEOHQRQFRQYHUWLEOH
GHEHQWXUHV5HWDLO>UHIHUQRWH$L@
3ULYDWHO\SODFHGQRQFRQYHUWLEOHGHEHQWXUHV
,QVWLWXWLRQDO>UHIHUQRWH$LLDE@
3XEOLFLVVXHRIUHGHHPDEOHQRQFRQYHUWLEOH
GHEHQWXUHV>UHIHUQRWH$LLLDE@
7HUPORDQIURPEDQNV>UHIHUQRWH%L@
8QVHFXUHG
)L[HGGHSRVLWV>UHIHUQRWH$@
6XERUGLQDWHGGHEWV>UHIHUQRWH%@
3DUWLFXODUV
6HFXUHG
7HUPORDQIURPILQDQFLDOLQVWLWXWLRQV>UHIHUQRWH
%LL@
7RWDOVHFXUHGORQJWHUPERUURZLQJ
7RWDOXQVHFXUHGORQJWHUPERUURZLQJ
$PRXQWGLVFORVHGXQGHUWKHKHDGRWKHUFXUUHQW
OLDELOLWLHV>5HIHUQRWH@
7RWDO
6HFXUHGORDQV/RQJWHUPERUURZLQJV
$6HFXUHGUHGHHPDEOHQRQFRQYHUWLEOHGHEHQWXUH
L3ULYDWHO\SODFHGVHFXUHGUHGHHPDEOHQRQFRQYHUWLEOHGHEHQWXUHVRI1&'V`
`HDFK8QTXRWHG5HWDLO
7HUPVRIUHSD\PHQWDVDW6HSWHPEHU
` LQODFV
5HGHHPDEOHDWSDUZLWKLQ
2YHUPRQWKV
5DWHRILQWHUHVW
! ! ! 7RWDO
0RQWKV
0RQWKV
PRQWKV
PRQWKV
7RWDOQRQFXUUHQWSRUWLRQ
PRQWKV
7RWDOFXUUHQWPDWXULWLHV
*UDQG7RWDO
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH±;,,
7HUPVRIUHSD\PHQWDVDW0DUFK
` LQODFV
5HGHHPDEOHDWSDUZLWKLQ
2YHUPRQWKV
! 5DWHRILQWHUHVW
! ! 7RWDO
0RQWKV
0RQWKV
PRQWKV
PRQWKV
7RWDOQRQFXUUHQWSRUWLRQ
PRQWKV
7RWDOFXUUHQWPDWXULWLHV
*UDQG7RWDO
1DWXUHRIVHFXULW\
7KHUHGHPSWLRQRISULQFLSDODPRXQWRIVHFXUHGUHGHHPDEOHQRQFRQYHUWLEOHGHEHQWXUHVZLWKDOOLQWHUHVWWKHUHRQDUHVHFXUHGE\D
OHJDOPRUWJDJHRQWKHVSHFLILHGLPPRYDEOHSURSHUW\DQGE\ZD\RIFKDUJHRQWKHFRPSDQ\
VVSHFLILFDOO\LGHQWLILHGPRYDEOHDVVHWV
VXFKDVERRNGHEWVORDQUHFHLYDEOHVLQIDYRXURIWKH7UXVWHHVDSSRLQWHG
7KHVHVHFXUHGUHGHHPDEOHQRQFRQYHUWLEOHGHEHQWXUHVDUHUHGHHPDEOHDWSDURYHUDSHULRGRIPRQWKVWRPRQWKVIURPWKH
GDWHRIDOORWPHQWGHSHQGLQJRQWKHWHUPVRIWKHDJUHHPHQW
6HFXUHGUHGHHPDEOHQRQFRQYHUWLEOHGHEHQWXUHVPD\EHERXJKWEDFNVXEMHFWWRDSSOLFDEOHVWDWXWRU\DQGRUUHJXODWRU\
UHTXLUHPHQWVXSRQWKHWHUPVDQGFRQGLWLRQVDVPD\EHGHFLGHGE\WKHFRPSDQ\7KHFRPSDQ\PD\JUDQWORDQDJDLQVWWKHVHFXULW\
RI61&'VXSRQWKHWHUPVDQGFRQGLWLRQVDVPD\EHGHFLGHGE\WKHFRPSDQ\DQGVXEMHFWWRDSSOLFDEOHVWDWXWRU\DQGRUUHJXODWRU\
UHTXLUHPHQWV
LL3ULYDWHO\SODFHGUHGHHPDEOHQRQFRQYHUWLEOHGHEHQWXUH,QVWLWXWLRQDO
D3ULYDWHO\SODFHGUHGHHPDEOHQRQFRQYHUWLEOHGHEHQWXUH1&'VRI``HDFKTRXWHG
` LQODFV
5DWHRI,QWHUHVW
1RQFXUUHQWSRUWLRQ
$VDW6HSW
$VDW0DUFK
&XUUHQWPDWXULWLHV
$VDW6HSW $VDW0DUFK
5HGHHPDEOHDW
SDURQ
2FW
6HS
$SU
0DU
2FW
6HS
$SU
7RWDO
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH±;,,
E3ULYDWHO\3ODFHG5HGHHPDEOH1RQ&RQYHUWLEOH'HEHQWXUH1&'VRI``HDFKTXRWHG
` LQODFV
&XUUHQWPDWXULWLHV
5HGHHPDEOHDW
$VDW6HSW
$VDW0DUFK
SDURQ
'HF
1RQFXUUHQWSRUWLRQ
$VDW6HSW
$VDW0DUFK
5DWHRI,QWHUHVW
'HF
-XO
-XO
0DU
)HE
1RY
0D\
)HE
'HF
-XQ
)HE
-DQ
2FW
$XJ
-XO
-XO
0D\
$SU
$SU
$SU
7RWDO
1DWXUHRIVHFXULW\
7KHUHGHPSWLRQRISULQFLSDODPRXQWRIVHFXUHGUHGHHPDEOHQRQFRQYHUWLEOHGHEHQWXUHVZLWKDOOLQWHUHVWWKHUHRQDUHVHFXUHGE\D
OHJDOPRUWJDJHRQWKHVSHFLILHGLPPRYDEOHSURSHUW\DQGE\ZD\RIFKDUJHRQWKHFRPSDQ\
VVSHFLILFDOO\LGHQWLILHGPRYDEOHDVVHWV
VXFKDVERRNGHEWVORDQUHFHLYDEOHVLQIDYRXURIWKH7UXVWHHVDSSRLQWHG
6HFXUHGUHGHHPDEOHQRQFRQYHUWLEOHGHEHQWXUHPD\EHERXJKWEDFNVXEMHFWWRDSSOLFDEOHVWDWXWRU\DQGRUUHJXODWRU\
UHTXLUHPHQWVXSRQWKHWHUPVDQGFRQGLWLRQVDVPD\EHGHFLGHGE\WKHFRPSDQ\
LLL3XEOLFLVVXHRIVHFXUHGUHGHHPDEOHQRQFRQYHUWLEOHGHEHQWXUHV1&'VRI`
`HDFKTXRWHG
D,VVXHGLQ
1RQFXUUHQWSRUWLRQ
2SWLRQ'HWDLO
5DWHRI,QWHUHVW
2SWLRQ,
2SWLRQ,,
7RWDO
$VDW6HSW
)
$VDW0DUFK
5HGHHPDEOHDW
SDURQ
$XJ
$XJ
$XJ
` LQODFV
3XWDQGFDOO
RSWLRQ
$XJ
$XJ
$XJ
$XJ
$XJ
$XJ
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH±;,,
D,VVXHGLQ
&XUUHQWPDWXULWLHV
$VDW0DUFK
5HGHHPDEOHDW
SDURQ
` LQODFV
3XWDQGFDOO
RSWLRQ
$XJ
$XJ
$XJ
$XJ
$XJ
$XJ
$XJ
$XJ
$XJ
2SWLRQ'HWDLO
5DWHRI,QWHUHVW
2SWLRQ,
2SWLRQ,,
7RWDO
$VDW6HSW
1DWXUHRIVHFXULW\
7KHUHSD\PHQWRIVHFXUHGUHGHHPDEOHQRQFRQYHUWLEOHGHEHQWXUHVRI`HDFKDWIDFHYDOXHRQPDWXULW\WRJHWKHUZLWKLQWHUHVW
WKHUHRQDUHVHFXUHGE\PRUWJDJHRILPPRYDEOHSURSHUW\DQGE\ZD\RIFKDUJHRQWKHFRPSDQ\
VVSHFLILFDOO\LGHQWLILHGPRYDEOH
DVVHWVVXFKDVERRNGHEWVORDQUHFHLYDEOHVLQIDYRXURIWKH7UXVWHHVDSSRLQWHG
6HFXUHGUHGHHPDEOHQRQFRQYHUWLEOHGHEHQWXUHPD\EHERXJKWEDFNVXEMHFWWRDSSOLFDEOHVWDWXWRU\DQGRUUHJXODWRU\
UHTXLUHPHQWVXSRQWKHWHUPVDQGFRQGLWLRQVDVPD\EHGHFLGHGE\WKHFRPSDQ\
E,VVXHGLQ
1RQFXUUHQWSRUWLRQ
$VDW0DUFK
5HGHHPDEOHDW
SDURQ
` LQODFV
5HGHHPDEOHDW
SUHPLXPRQ
2SWLRQ'HWDLO
5DWHRI,QWHUHVW
$VDW6HSW
2SWLRQ,
2FW
2FW
2FW
2FW
2SWLRQ,,
7RWDO
1DWXUHRIVHFXULW\
7KHUHSD\PHQWRIVHFXUHGUHGHHPDEOHQRQFRQYHUWLEOHGHEHQWXUHVRI`HDFKDWIDFHYDOXHRQPDWXULW\WRJHWKHUZLWKLQWHUHVW
WKHUHRQDUHVHFXUHGE\PRUWJDJHRILPPRYDEOHSURSHUW\DQGE\ZD\RIFKDUJHRQWKHFRPSDQ\
VVSHFLILFDOO\LGHQWLILHGPRYDEOH
DVVHWVVXFKDVERRNGHEWVORDQUHFHLYDEOHVLQIDYRXURIWKH7UXVWHHVDSSRLQWHG
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH±;,,
%7HUPORDQ
L7HUPORDQIURPEDQN
7HUPVRIUHSD\PHQWDVDW6HSWHPEHU
1RQ&XUUHQW
SRUWLRQ
` LQODFV
&XUUHQW
0DWXULWLHV
WRLQVWDOOPHQWVRIEXOOHWKDOI
\HDUO\DQG\HDUO\IUHTXHQF\
WRLQVWDOOPHQWVRIEXOOHW
TXDUWHUO\IUHTXHQF\
WRLQVWDOOPHQWVRIEXOOHW
WR PRQWKO\TXDUWHUO\DQGKDOI\HDUO\
IUHTXHQF\
WRLQVWDOOPHQWVRIEXOOHW
4XDUWHUO\KDOI\HDUO\IUHTXHQF\
1RQ&XUUHQW
SRUWLRQ
` LQODFV
&XUUHQW
0DWXULWLHV
7HQRU
5DWHRILQWHUHVW
PRQWKV
WR
PRQWKV
WR
PRQWKV
8SWRPRQWKV
WR
5HSD\PHQW'HWDLOV
7HUPVRIUHSD\PHQWDVDW0DUFK
7HQRU
5DWHRILQWHUHVW
PRQWKV
WR
WRLQVWDOOPHQWVRIEXOOHWKDOI
\HDUO\DQG\HDUO\IUHTXHQF\
PRQWKV
WR
WRLQVWDOOPHQWVRIEXOOHW
TXDUWHUO\IUHTXHQF\
PRQWKV
WRLQVWDOOPHQWVRIEXOOHW
WR PRQWKO\TXDUWHUO\DQGKDOI\HDUO\
IUHTXHQF\
WRLQVWDOOPHQWVRIEXOOHW
4XDUWHUO\KDOI\HDUO\IUHTXHQF\
8SWRPRQWKV
WR
5HSD\PHQW'HWDLOV
1DWXUHRI6HFXULW\
7HUP/RDQVIURPEDQNVDUHVHFXUHGE\DQH[FOXVLYHFKDUJHE\ZD\RIK\SRWKHFDWLRQRIVSHFLILFDVVHWVXQGHUILQDQFLQJ
LL7HUPORDQIURP,QVWLWXWLRQV
7HUPVRIUHSD\PHQWDVDW6HSWHPEHU
` LQODFV
7HQRU
5DWHRILQWHUHVW
PRQWKV
PRQWKV
*UDQG7RWDO
5HSD\PHQW'HWDLOV
WRLQVWDOOPHQWVRI\HDUO\
IUHTXHQF\
WRLQVWDOOPHQWVRI\HDUO\
IUHTXHQF\
)
1RQ&XUUHQW
SRUWLRQ
&XUUHQW
0DWXULWLHV
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH±;,,
7HUPVRIUHSD\PHQWDVDW0DUFK
7HQRU
PRQWKV
8SWRPRQWKV
*UDQG7RWDO
5DWHRILQWHUHVW
5HSD\PHQW'HWDLOV
WRLQVWDOOPHQWVRI\HDUO\
IUHTXHQF\
WR %XOOHWSD\PHQWRQPDWXULW\
1RQ&XUUHQW
SRUWLRQ
` LQODFV
&XUUHQW
0DWXULWLHV
1DWXUHRIVHFXULW\
7HUPORDQVIURPLQVWLWXWLRQVDUHVHFXUHGE\DQH[FOXVLYHFKDUJHE\ZD\RIK\SRWKHFDWLRQRIVSHFLILFDVVHWVXQGHUILQDQFLQJ
8QVHFXUHGORDQ/RQJWHUPERUURZLQJV
$)L[HGGHSRVLWVRI`
`HDFKXQTXRWHG
7HUPVRIUHSD\PHQWDVDW6HSWHPEHU
` LQODFV
5HGHHPDEOHDWSDUZLWKLQ
5DWHRILQWHUHVW
! ! ! ! 7RWDO
0RQWKV
0RQWKV
PRQWKV
PRQWKV
7RWDOQRQFXUUHQWSRUWLRQ
PRQWKV
7RWDOFXUUHQWPDWXULWLHV
*UDQG7RWDO
7HUPVRIUHSD\PHQWDVDW0DUFK
` LQODFV
5HGHHPDEOHDWSDUZLWKLQ
5DWHRILQWHUHVW
! ! ! ! 7RWDO
0RQWKV
PRQWKV
PRQWKV
7RWDOQRQFXUUHQWSRUWLRQ
PRQWKV
7RWDOFXUUHQWPDWXULWLHV
*UDQG7RWDO
0RQWKV
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH±;,,
%3ULYDWHO\SODFHGVXERUGLQDWHGGHEWV
7KHFRPSDQ\KDVLVVXHGVXERUGLQDWHGGHEWERQGVZLWKFRXSRQUDWHRIWRSHUDQQXPZKLFKDUHUHGHHPDEOHRYHUDSHULRG
RIPRQWKVWRPRQWKV
7HUPVRIUHSD\PHQWDVDW6HSWHPEHU
L3ULYDWHO\SODFHGVXERUGLQDWHGGHEWVRI`
`HDFKXQTXRWHG
` LQODFV
3DUWLFXODUV
5DWHRILQWHUHVW
! ! ! 7RWDO
PRQWKV
PRQWKV
PRQWKV
PRQWKV
PRQWKV
7RWDOFXUUHQWPDWXULWLHV
2YHUPRQWKV
7RWDOQRQFXUUHQWSRUWLRQ
*UDQG7RWDO
LL3ULYDWHO\SODFHGVXERUGLQDWHGGHEWVRI``HDFKTXRWHG
` LQODFV
5HGHHPDEOHDWSDUZLWKLQ
5DWHRILQWHUHVW
! ! ! 7RWDO
2YHUPRQWKV
7RWDOQRQFXUUHQWSRUWLRQ
LLL3ULYDWHO\SODFHGVXERUGLQDWHGGHEWVRI``HDFKTXRWHG
` LQODFV
5HGHHPDEOHDWSDUZLWKLQ
2YHUPRQWKV
5DWHRILQWHUHVW
! ! ! 7RWDO
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH±;,,
7HUPVRIUHSD\PHQWDVDW0DUFK
L3ULYDWHO\SODFHGVXERUGLQDWHGGHEWVRI`
`HDFKXQTXRWHG
`LQODFV
3DUWLFXODUV
5DWHRILQWHUHVW
! ! ! 7RWDO
0RQWKV
0RQWKV
PRQWKV
PRQWKV
PRQWKV
7RWDOFXUUHQWPDWXULWLHV
2YHUPRQWKV
7RWDOQRQFXUUHQWSRUWLRQ
*UDQG7RWDO
LL3ULYDWHO\SODFHGVXERUGLQDWHGGHEWVRI``HDFKTXRWHG
` LQODFV
5HGHHPDEOHDWSDUZLWKLQ
5DWHRILQWHUHVW
! ! ! 7RWDO
2YHUPRQWKV
7RWDOQRQFXUUHQWSRUWLRQ
LLL3ULYDWHO\SODFHGVXERUGLQDWHGGHEWVRI``HDFKTXRWHG
` LQODFV
5HGHHPDEOHDWSDUZLWKLQ
2YHUPRQWKV
5DWHRILQWHUHVW
! ! ! 7RWDO
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH±;,,
2WKHUOLDELOLWLHV
` LQODFV
/RQJWHUP
$VDW6HSW $VDW0DUFK
3DUWLFXODUV
&XUUHQWPDWXULWLHVRIORQJWHUPERUURZLQJV>5HIHUQRWH@
,QWHUHVWDFFUXHGEXWQRWGXHRQERUURZLQJV
$SSOLFDWLRQPRQH\RQUHGHHPDEOHQRQFRQYHUWLEOH
GHEHQWXUHV
$SSOLFDWLRQPRQH\RQUHGHHPDEOHVXERUGLQDWHGHEWV
6KRUWWHUP
$VDW6HSW $VDW0DUFK
$SSOLFDWLRQPRQH\RQGHSRVLW
8QFODLPHGGLYLGHQGV
8QFODLPHGPDWXUHGGHSRVLWVDQGLQWHUHVWDFFUXHGWKHUHRQ
8QFODLPHGPDWXUHGGHEHQWXUHVDQGLQWHUHVWDFFUXHG
WKHUHRQ
8QFODLPHGPDWXUHG6XERUGLQDWHGHEWVDQGLQWHUHVWDFFUXHG
WKHUHRQ
7HPSRUDU\FUHGLWEDODQFHLQEDQNDFFRXQWV
7D[GHGXFWHGDWVRXUFH
6WDWXWRU\GXHSHUWDLQLQJWRHPSOR\HHV
6HUYLFHWD[FRQWHVWHG
6HFXULWLVDWLRQGHIHUUHGLQFRPHLQFRPHUHFHLYHGLQ
DGYDQFH
5HWHQWLRQDQGRWKHUV
7RWDO
$VUHJDUGVWKHUHFRYHU\RI6HUYLFHWD[RQOHDVHDQGKLUHSXUFKDVHWUDQVDFWLRQVWKH+RQ
EOH6XSUHPH&RXUWYLGHLWVRUGHUGDWHG
2FWREHUKDVGLUHFWHGWKHFRPSHWHQWDXWKRULW\XQGHUWKH)LQDQFHDFWWRGHFLGHWKHPDWWHULQDFFRUGDQFHZLWKWKH
ODZODLGGRZQ
$FFUXHGLQWHUHVWLVXSWRWKHGDWHRIPDWXULW\$PRXQWVVKDOOEHFUHGLWHGWR,QYHVWRU(GXFDWLRQ3URWHFWLRQ)XQGWRWKHH[WHQG
XQFODLPHGDVDQGZKHQGXH
3URYLVLRQV
3DUWLFXODUV
3URYLVLRQIRU(PSOR\HHEHQHILWV
3URYLVLRQIRUJUDWXLW\
` LQODFV
/RQJWHUP
6KRUWWHUP
$VDW6HSW $VDW0DUFK
$VDW6HSW $VDW0DUFK
3URYLVLRQIRUOHDYHEHQHILWV
2WKHUSURYLVLRQV
&RQWLQJHQWSURYLVLRQIRUVWDQGDUGDVVHWV
3URYLVLRQIRUKHGJLQJFRQWUDFWV
3URYLVLRQIRULQFRPHWD[>QHWRIDGYDQFHLQFRPHWD[@
3URSRVHGGLYLGHQG
&RUSRUDWHGLYLGHQGWD[
3URYLVLRQIRUGLPLQXWLRQLQWKHYDOXHRILQYHVWPHQWV
7RWDO
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH±;,,
6KRUWWHUPERUURZLQJV
$VDW6HSW
3DUWLFXODUV
6HFXUHG
7HUPORDQIURPEDQNV
` LQODFV
$VDW0DUFK
8QVHFXUHG
&RPPHUFLDOSDSHUV
,QWHU&RUSRUDWH'HSRVLWV
7HUPORDQIURPILQDQFLDOLQVWLWXWLRQV
&DVK&UHGLWIURPEDQN
:RUNLQJFDSLWDOGHPDQGORDQIURPEDQN
7RWDO
7HUPORDQIURPEDQNV
5DWHRILQWHUHVW
5HSD\PHQW'HWDLOV
$VDW6HSW
` LQODFV
$VDW0DUFK
TXDUWHUO\UHSD\PHQW
%XOOHWSD\PHQWDWWKHHQGRI\HDU
%XOOHWSD\PHQWDWWKHHQGRI\HDU
7RWDO
1DWXUHRI6HFXULW\
7HUP/RDQVIURPEDQNVDUHVHFXUHGE\DQH[FOXVLYHFKDUJHE\ZD\RIK\SRWKHFDWLRQRIVSHFLILFDVVHWVXQGHUILQDQFLQJ
7HUPORDQIURPLQVWLWXWLRQV
5DWHRILQWHUHVW
7RWDO
5HSD\PHQW'HWDLOV
%XOOHWSD\PHQWDWWKHHQGRI\HDU
$VDW6HSW
` LQODFV
$VDW0DUFK
1DWXUHRI6HFXULW\
7HUP/RDQVIURPLQVWLWXWLRQVDUHVHFXUHGE\DQH[FOXVLYHFKDUJHE\ZD\RIK\SRWKHFDWLRQRIVSHFLILFDVVHWVXQGHUILQDQFLQJ
&DVKFUHGLWDQGZRUNLQJFDSLWDOGHPDQGORDQV
1DWXUHRI6HFXULW\
&DVKFUHGLWDQGZRUNLQJFDSLWDOGHPDQGORDQIURPEDQNVDUHVHFXUHGE\ZD\RIK\SRWKHFDWLRQRIVSHFLILFPRYDEOHDVVHWVUHODWLQJ
WRWKHORDQV
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH±;,,
7DQJLEOHDQGLQWDQJLEOHIL[HGDVVHWV
` LQODFV
7DQJLEOHDVVHWV
3DUWLFXODUV
*URVV%ORFN
$VDW$SULO
$GGLWLRQV
'LVSRVDOV
)XUQLWXUHDQG
IL[WXUHV
/HDVHKROG
9HKLFOHV
LPSURYHPHQWV
7RWDOWDQJLEOH
DVVHWV
,QWDQJLEOH
DVVHWV
&RPSXWHU
VRIWZDUH
7RWDOIL[HG
DVVHWV
/DQG
%XLOGLQJ
3ODQWDQG
PDFKLQHU\
$GGLWLRQV
'LVSRVDOV
'HSUHFLDWLRQ
$VDW$SULO
&KDUJHIRUWKH\HDU
'LVSRVDOV
$VDW0DUFK
&KDUJHIRUWKH\HDU
'LVSRVDOV
$VDW6HSWHPEHU
$VDW0DUFK
$VDW6HSWHPEHU
$VDW0DUFK
$VDW6HSWHPEHU
1HW%ORFN
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH±;,,
1RQFXUUHQWLQYHVWPHQWV
` LQODFV
$VDW0DUFK
$VDW6HSW
3DUWLFXODUV
/RQJWHUPLQYHVWPHQWV
*2,/RDQRIIDFHYDOXH`ODFV0DUNHWYDOXHDVRQ6HSWHPEHU
`ODFVDQG0DUFK`ODFV
7RWDOTXRWHGQRQFXUUHQWLQYHVWPHQW
2WKHUWKDQWUDGH
$8QTXRWHGHTXLW\LQVWUXPHQWV
L,QYHVWPHQWLQVXEVLGLDU\YDOXHGDWFRVW
0DUFK(TXLW\VKDUHVRI`HDFKIXOO\SDLG
XSLQ6KULUDP+RXVLQJ)LQDQFH/WG
LL,QYHVWPHQWLQRWKHUFRPSDQLHVYDOXHGDWFRVW
0DUFKHTXLW\VKDUHVRI`HDFKIXOO\SDLGXSLQ
+LJKPDUN&UHGLW,QIRUPDWLRQ6HUYLFHV3ULYDWH/WG
7RWDOXQTXRWHGQRQFXUUHQWLQYHVWPHQW
$4XRWHG,QYHVWPHQW
L,QYHVWPHQWLQJRYHUQPHQWVHFXULWLHVYDOXHGDWFRVW
4XRWHG
7RWDO
$JJUHJDWHDPRXQWRI4XRWHG,QYHVWPHQWVFRVWRIDFTXLVLWLRQ
$JJUHJDWHDPRXQWRI8QTXRWHG,QYHVWPHQWVFRVWRIDFTXLVLWLRQ
$JJUHJDWHDPRXQWRISURYLVLRQIRUGLPLQXWLRQLQYDOXHRI,QYHVWPHQWV
D,QDFFRUGDQFHZLWKWKH5HVHUYH%DQNRI,QGLDFLUFXODUQR5%,'1%63'&&1RGDWHG
-DQXDU\WKHFRPSDQ\KDVFUHDWHGDIORDWLQJFKDUJHRQWKHVWDWXWRU\OLTXLGDVVHWVFRPSULVLQJRILQYHVWPHQWLQJRYHUQPHQW
VHFXULWLHVEHLQJVWDWXWRU\OLTXLGDVVHWVWRWKHH[WHQWRI`/DFV0DUFK` /DFVLQIDYRXURIWUXVWHHV
UHSUHVHQWLQJWKHSXEOLFGHSRVLWKROGHUVRIWKHFRPSDQ\
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH±;,,
'HIHUUHGWD[DVVHW1HW
` LQODFV
$VDW0DUFK
$VDW6HSW
3DUWLFXODUV
'HIHUUHGWD[OLDELOLWLHV
7LPLQJGLIIHUHQFHRQDFFRXQWRI
'HIHUUHGH[SHQVHVLQFXUUHGIRU1&'PRELOL]DWLRQ
*URVVGHIHUUHGWD[OLDELOLWLHV$
)L[HGDVVHWV,PSDFWRIGLIIHUHQFHEHWZHHQWD[GHSUHFLDWLRQDQGGHSUHFLDWLRQDQG
GHSUHFLDWLRQDPRUWL]DWLRQFKDUJHGIRUWKHILQDQFLDOUHSRUWLQJ
3URYLVLRQIRUVHUYLFHWD[
3URYLVLRQIRUJUDWXLW\
3URYLVLRQIRUGHULYDWLYH
3URYLVLRQIRUERQXV
(VWLPDWHGGLVDOORZDQFHV
*URVVGHIHUUHGWD[$VVHWV%
'HIHUUHGWD[DVVHW1HW%$
)L[HGDVVHWV,PSDFWRIGLIIHUHQFHEHWZHHQWD[GHSUHFLDWLRQDQGGHSUHFLDWLRQDQG
GHSUHFLDWLRQDPRUWL]DWLRQFKDUJHGIRUWKHILQDQFLDOUHSRUWLQJ
'HIHUUHGWD[DVVHW
7LPLQJGLIIHUHQFHRQDFFRXQWRI
&RQWLQJHQWSURYLVLRQDJDLQVWVWDQGDUGDVVHWV
3URYLVLRQIRUOHDYHEHQHILWV
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH±;,,
/RDQVDQGDGYDQFHV
` LQODFV
3DUWLFXODUV
8QVHFXUHGFRQVLGHUHGJRRG
&DSLWDODGYDQFHV
/RQJWHUP
$VDW6HSW
$VDW0DUFK
6KRUWWHUP
$VDW6HSW $VDW0DUFK
/HVVSURYLVLRQIRUQRQSHUIRUPLQJDVVHWV
8QVHFXUHGFRQVLGHUHGJRRG
6HFXULW\GHSRVLWV
/RDQVDQGDGYDQFHV
$VVHWVXQGHUILQDQFLQJDFWLYLWLHV
6HFXUHGFRQVLGHUHGJRRG
'RXEWIXO
'RXEWIXO
/HVVSURYLVLRQIRUQRQSHUIRUPLQJDVVHWV
$GYDQFHVUHFRYHUDEOHLQFDVKRULQNLQGRUIRUYDOXH
WREHUHFHLYHG8QVHFXUHGFRQVLGHUHGJRRG
,QYHVWPHQWWKURXJK37&
7RWDO
2WKHUDVVHWV
` LQODFV
3DUWLFXODUV
1RQFXUUHQW
$VDW6HSW
$VDW0DUFK
&XUUHQW
$VDW6HSW $VDW0DUFK
%DQNEDODQFHVQRQFXUUHQWSRUWLRQ>5HIHUQRWH@
3XEOLFLVVXHH[SHQVHVIRUQRQFRQYHUWLEOH
GHEHQWXUHVWRWKHH[WHQWQRWZULWWHQRIIRUDGMXVWHG
,QWHUHVWDFFUXHGRQIL[HGGHSRVLWDQGRWKHUORDQDQG
DGYDQFHV
6HUYLFHWD[FUHGLWLQSXWUHFHLYDEOH
3UHSDLGH[SHQVHV
2WKHUDVVHWV
6HFXULWLVDWLRQUHFHLYDEOH
7RWDO
&XUUHQWLQYHVWPHQWV
` LQODFV
3DUWLFXODUV
$VDW6HSW
,QYHVWPHQWVLQ0XWXDO)XQGV
)
$VDW0DUFK
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH±;,,
&DVKDQGEDQNEDODQFHV
` LQODFV
1RQFXUUHQW
3DUWLFXODUV
$VDW6HSW
&DVKDQGFDVKHTXLYDOHQWV
$VDW0DUFK
%DODQFHVZLWKEDQNV
&XUUHQW
$VDW6HSW
$VDW0DUFK
&XUUHQWDFFRXQWV
%DODQFHLQXQSDLGGLYLGHQGDFFRXQWV
%DQNGHSRVLWVZLWKPDWXULW\RIOHVVWKDQPRQWKV
&DVKRQKDQG
2WKHUEDQN%DODQFHV
%DQNGHSRVLWVZLWKRULJLQDOPDWXULW\IRUPRUHWKDQ
PRQWKV
%DQNGHSRVLWVZLWKRULJLQDOPDWXULW\IRUPRUHWKDQ
PRQWKVEXWOHVVWKDQPRQWKV
0DUJLQPRQH\GHSRVLWV
$PRXQWGLVFORVHGXQGHUWKHKHDGQRQFXUUHQW
DVVHW>5HIHUQRWH@
7RWDO
0DUJLQPRQH\GHSRVLWRI ` ODFVDVDW6HSW0DUFK`ODFVDUHSOHGJHGZLWKEDQNVDV
PDUJLQIRUVHFXULWLVDWLRQ
5HYHQXHIURPRSHUDWLRQ
` LQODFV
)RUWKH\HDUHQGHG
0DUFK
)RUWKHSHULRGHQGHG
6HSW
3DUWLFXODUV
,QFRPHIURPILQDQFHDQGRWKHUFKDUJHV
,QFRPHRQ6HFXULWLVDWLRQDVVLJQPHQW
,QWHUHVWRQ0DUJLQPRQH\RQVHFXULWLVDWLRQDVVLJQPHQW
%DGGHEWVUHFRYHU\
7RWDO
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH±;,,
2WKHULQFRPH
)RUWKHSHULRGHQGHG
6HSW
` LQODFV
)RUWKH\HDUHQGHG
0DUFK
,QWHUHVWRQJRYHUQPHQWVHFXULWLHV
3URILWRQVDOHRIDVVHWV
)RUWKHSHULRGHQGHG
6HSW
` LQODFV
)RUWKH\HDUHQGHG
0DUFK
3DUWLFXODUV
'LYLGHQG,QFRPH
1HWJDLQRQVDOHRILQYHVWPHQWV
2WKHUQRQRSHUDWLQJLQFRPH
,QWHUHVWRQGHSRVLWZLWKEDQN
&RPPLVVLRQ
0LVFHOODQHRXVLQFRPH
7RWDO
(PSOR\HHEHQHILWVH[SHQVHV
3DUWLFXODUV
6DODULHVDQGLQFHQWLYHV
&RQWULEXWLRQVWR3URYLGHQWIXQG
*UDWXLW\
)RUWKHSHULRGHQGHG
6HSW
` LQODFV
)RUWKH\HDUHQGHG
0DUFK
%DQN&KDUJHV
3URFHVVLQJDQGRWKHUFKDUJHV
([SHQVHRQ(PSOR\HH6WRFN2SWLRQ6FKHPH
6WDIIZHOIDUHH[SHQVHV
7RWDO
)LQDQFHFRVWV
3DUWLFXODUV
,QWHUHVWH[SHQVHRQ
'HEHQWXUHV
6XERUGLQDWHGHEWV
)L[HGGHSRVLWV
/RDQVIURPEDQNV
/RDQVIURPLQVWLWXWLRQVDQGRWKHUV
&RPPHUFLDO3DSHUV
%RUURZLQJ&RVW
%URNHUDJH
7RWDO
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH±;,,
2WKHUH[SHQVHV
)RUWKHSHULRGHQGHG
6HSW
` LQODFV
)RUWKH\HDUHQGHG
0DUFK
3RZHUDQGIXHOH[SHQVHV
5HSDLUVPDLQWHQDQFH
5DWHVGXWLHVWD[HV
3ULQWLQJVWDWLRQHU\
$GYHUWLVHPHQW
%XVLQHVVSURPRWLRQH[SHQVHV
&RPPLVVLRQ
6RXUFLQJIHHVDQGRWKHUFKDUJHV
3DUWLFXODUV
5HQW
7UDYHOOLQJFRQYH\DQFH
5R\DOW\
'LUHFWRUV
VLWWLQJIHHV
,QVXUDQFH
DDXGLWIHHV
EWD[DXGLWIHHV
FFHUWLILFDWLRQDQGRWKHUVHUYLFHV
GRXWRISRFNHW
&RPPXQLFDWLRQH[SHQVHV
3D\PHQWVWRWKHDXGLWRU
DVDXGLWRUUHIHUQRWHQR
3URIHVVLRQDOFKDUJHV
/HJDOSURIHVVLRQDOIHHV
'RQDWLRQV
3XEOLFLVVXHH[SHQVHVIRUQRQFRQYHUWLEOHGHEHQWXUHV
/RVVRQVDOHRIDVVHWV
0LVFHOODQHRXVH[SHQVHV
7RWDO
)RUWKHSHULRGHQGHG
6HSW
` LQODFV
)RUWKH\HDUHQGHG
0DUFK
3URYLVLRQVZULWHRIIV
3DUWLFXODUV
3URYLVLRQIRUQRQSHUIRUPLQJDVVHWV
%DGGHEWVZULWWHQRII
7RWDO
&RQWLQJHQWSURYLVLRQIRUVWDQGDUGDVVHWV
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH±;,,
(DUQLQJVSHUVKDUH(36
$VDW6HSW
3DUWLFXODUV
1HWSURILWDIWHUWD[DQGVKDUHRIORVVRI$VVRFLDWHVDVSHUVWDWHPHQWRISURILWDQGORVV
` iQODFV$
$VDW0DUFK
:HLJKWHGDYHUDJHQXPEHURIHTXLW\VKDUHVIRUFDOFXODWLQJ%DVLF(361RLQODFV%
:HLJKWHGDYHUDJHQXPEHURIHTXLW\VKDUHVIRUFDOFXODWLQJ'LOXWHG(36CLQODFV&
%DVLFHDUQLQJVSHUHTXLW\VKDUHLQ5XSHHV)DFHYDOXHRICSHUVKDUH$%
'LOXWHGHDUQLQJVSHUHTXLW\VKDUHLQ5XSHHV)DFHYDOXHRICSHUVKDUH$&
$VDW6HSW
3DUWLFXODUV
:HLJKWHGDYHUDJHQXPEHURIHTXLW\VKDUHVIRUFDOFXODWLQJ(361RLQODFV
$VDW0DUFK
$GG(TXLW\VKDUHVDULVLQJRQFRQYHUVLRQRIRSWLRQDOO\FRQYHUWLEOHZDUUDQWV1RLQODFV
$GG(TXLW\VKDUHVIRUQRFRQVLGHUDWLRQDULVLQJRQJUDQWRIVWRFNRSWLRQVXQGHU(623
1RLQODFV
:HLJKWHGDYHUDJHQXPEHURIHTXLW\VKDUHVLQFDOFXODWLRQGLOXWHG(361RLQODFV
(PSOR\HH6WRFN2SWLRQ3ODQ
7KHFRPSDQ\SURYLGHVVKDUHEDVHGSD\PHQWVFKHPHVWRLWVHPSOR\HHV)RUWKHSHULRGHQGHG6HSWHPEHUDQHPSOR\HH
VWRFNRSWLRQSODQ(623ZDVLQH[LVWHQFH7KHUHOHYDQWGHWDLOVRIWKHVFKHPHDQGWKHJUDQWDUHDVEHORZ
'DWHRI6KDUHKROGHU¶VDSSURYDO2FWREHU
'DWHRIJUDQW2FWREHU
'DWHRI%RDUG$SSURYDO2FWREHU
1XPEHURIRSWLRQVJUDQWHG
0HWKRGRI6HWWOHPHQW&DVK(TXLW\(TXLW\
*UDGHGYHVWLQJSHULRG
$IWHU\HDUVRIJUDQWGDWHRIRSWLRQVJUDQWHG
$IWHU\HDUVRIJUDQWGDWHRIRSWLRQVJUDQWHG
$IWHU\HDUVRIJUDQWGDWHRIRSWLRQVJUDQWHG
$IWHU\HDUVRIJUDQWGDWHRIRSWLRQVJUDQWHG
([HUFLVDEOHSHULRG\HDUVIURPYHVWLQJGDWH
9HVWLQJ&RQGLWLRQVRQDFKLHYHPHQWRISUH±GHWHUPLQHGWDUJHWV
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH±;,,
(PSOR\HH6WRFN2SWLRQ3ODQ
7KHGHWDLOVRI6HULHV,KDYHEHHQVXPPDUL]HGEHORZ
$VDW6HSWHPEHU
$VDW0DUFK
:HLJKWHG
1XPEHURI
$YHUDJH([HUFLVH
6KDUHV
`)
3ULFHLQ`
2XWVWDQGLQJDWWKHEHJLQQLQJRIWKH\HDU
:HLJKWHG
$YHUDJH([HUFLVH
`)
3ULFHLQ`
1XPEHURI
6KDUHV
$GG*UDQWHGGXULQJWKH\HDU
/HVV)RUIHLWHGGXULQJWKH\HDU
/HVV([HUFLVHGGXULQJWKH\HDU
/HVV([SLUHGGXULQJWKH\HDU
2XWVWDQGLQJDWWKHHQGRIWKHSHULRG
([HUFLVDEOHDWWKHHQGRIWKHSHULRG
:HLJKWHGDYHUDJHUHPDLQLQJFRQWUDFWXDOOLIH
LQ\HDUV
:HLJKWHGDYHUDJHIDLUYDOXHRIRSWLRQV
JUDQWHG
7KHGHWDLOVRIH[HUFLVHSULFHIRUVWRFNRSWLRQVRXWVWDQGLQJDWWKHHQGRIWKHSHULRGDUH
5DQJHRI
H[HUFLVH
`
SULFHVLQ`
1RRIRSWLRQV
RXWVWDQGLQJ
:HLJKWHG
DYHUDJH
UHPDLQLQJ
FRQWUDFWXDOOLIH
RIRSWLRQVLQ
\HDUV
6HSWHPEHU
0DUFK
$VDW
:HLJKWHG
DYHUDJH([HUFLVH
`
3ULFHLQ`
6WRFN2SWLRQVJUDQWHG
7KHZHLJKWHGDYHUDJHIDLUYDOXHRIVWRFNRSWLRQVJUDQWHGZDV5V7KH%ODFN6FKROHVPRGHOKDVEHHQXVHGIRUFRPSXWLQJ
WKHZHLJKWHGDYHUDJHIDLUYDOXHRIRSWLRQVFRQVLGHULQJWKHIROORZLQJLQSXWV
([HUFLVH3ULFH5V
([SHFWHG9RODWLOLW\
+LVWRULFDO9RODWLOLW\
/LIHRIWKHRSWLRQVJUDQWHG9HVWLQJDQG
H[HUFLVHSHULRGLQ\HDUV
([SHFWHGGLYLGHQGVSHUDQQXP`
1$
1$
1$
1$
$YHUDJHULVNIUHHLQWHUHVWUDWH
([SHFWHGGLYLGHQGUDWH
7KHH[SHFWHGYRODWLOLW\ZDVGHWHUPLQHGEDVHGRQKLVWRULFDOYRODWLOLW\GDWDHTXDOWRWKH16(YRODWLOLW\UDWHRI%DQN1LIW\ZKLFKLV
FRQVLGHUHGDVDFRPSDUDEOHSHHUJURXSRIWKH&RPSDQ\7RDOORZIRUWKHHIIHFWVRIHDUO\H[HUFLVHLWZDVDVVXPHGWKDWWKH
HPSOR\HHVZRXOGH[HUFLVHWKHRSWLRQVZLWKLQVL[PRQWKVIURPWKHGDWHRIYHVWLQJLQYLHZRIWKHH[HUFLVHSULFHEHLQJVLJQLILFDQWO\
ORZHUWKDQWKHPDUNHWSULFH
)
6KULUDP&LW\8QLRQ)LQDQFH/LPLWHG
$QQH[XUH±;,,
(PSOR\HH6WRFN2SWLRQ3ODQ
(IIHFWRIWKHHPSOR\HHVKDUHEDVHGSD\PHQWSODQVRQWKHSURILWDQGORVVDFFRXQWDQGRQLWVILQDQFLDOSRVLWLRQ
` LQODFV
$VDW
6HSWHPEHU
&RPSHQVDWLRQFRVWSHUWDLQLQJWRHTXLW\VHWWOHGHPSOR\HHVKDUHEDVHGSD\PHQWSODQ
LQFOXGHGDERYH
/LDELOLW\IRUHPSOR\HHVWRFNRSWLRQVRXWVWDQGLQJDVDWHQGRISHULRG
'HIHUUHGFRPSHQVDWLRQFRVW
$VDW
0DUFK
1LO
1LO
6LQFHWKHFRPSDQ\XVHGWKHLQWULQVLFYDOXHPHWKRGWKHLPSDFWRQWKHUHSRUWHGQHWSURILWDQGHDUQLQJVSHUVKDUHE\
DSSO\LQJWKHIDLUYD