& 5
*'
FNEN
81,7('67$7(67(11,6$662&,$7,21 6287+($67(510,&+,*$1',675,&7
'9(14FNEEUEN#0&0&'4#0%6+10'&1740#/'06 2.#;9+..%*#0)'61^ 'XULQJWKH867$6HPL$QQXDO0HHWLQJKHOGGXULQJWKH 862SHQWKH1DWLRQDO2IILFHSDVVHGQHZUXOHVJRYHUQLQJ FRPSHWLWLRQIRUDQGXQGHUWHQQLVWRXUQDPHQWV7KHQHZ UXOHVUHTXLUHWKDWDQGXQGHUWRXUQDPHQWVEHSOD\HGXVLQJ WKH4XLFN6WDUWIRUPDWIHDWXULQJVORZHUPRYLQJDQGORZHU ERXQFLQJEDOOVRQVPDOOHUFRXUWVDQGXWLOL]LQJVKRUWHUOLJKWHUUDFTXHWV 7KLVPRYHIROORZVWKH,QWHUQDWLRQDO7HQQLV)HGHUDWLRQ¶VSURSRVHG UXOHFKDQJHDQGZLOOWDNHHIIHFWRQ-DQXDU\,W DSSOLHVWRDOO867$VDQFWLRQHGHYHQWVIRUFKLOGUHQDQGXQGHU
7KHFRQFHSWRIXVLQJHTXLSPHQWDQGILHOGFRXUWVL]HVVFDOHGWR WKHVL]HRI\RXQJFKLOGUHQKDVEHHQLQSODFHLQ/LWWOH/HDJXH %DVHEDOODQGRWKHU\RXWKVSRUWVVXFKDVVRFFHUDQGEDVNHWEDOOIRU\HDUVDQGDOORZVNLGVWRDFKLHYHVXF FHVVWKHILUVWWLPHRXW²DQGVXVWDLQWKDWVXFFHVVDVWKH\FRQWLQXHWRGHYHORSDQGUHILQHWKHLUVNLOOV7KLV UXOHFKDQJHWRWKHFRPSHWLWLRQIRUPDWIRUNLGVDQGXQGHULVFULWLFDOWRWKHORQJWHUPJURZWKRIRXUVSRUW DQGXOWLPDWHO\ZLOOKHOSXVGHYHORSQHZJHQHUDWLRQVRISOD\HUVDQGFKDPSLRQV´VD\V.XUW.DPSHUPDQ &KLHI([HFXWLYH&RPPXQLW\7HQQLV867$ )RUSOD\HUVKHUHLQWKH0LGZHVW6HFWLRQWKHVSHFLILFDWLRQVIRUWKHUHYLVHGV\VWHPKROGWKDWDOOWRXUQD PHQWV/HYHOV IRUWKRVHDJHVEHSOD\HGRQIRRWFRXUWVIXOOVL]H XVLQJD³JUHHQGRW´ORZ FRPSUHVVLRQEDOODQGUHJXODWLRQQHWVIHHWDWFHQWHU 7KHUHZLOOEHDQHZ³/HYHO´WRXUQDPHQWZKLFK ZLOOEHSOD\HGRQDIRRWFRXUWXVLQJRUDQJHORZFRPSUHVVLRQWHQQLVEDOOV7RXUQDPHQWVIRUWKRVHDQG XQGHUDUHWREHSOD\HGRQIRRWFRXUWVXVLQJUHGIRDPEDOOVDQGQHWVDWDKHLJKWRIIHHWLQFKHV
7KH6RXWKHDVW0LFKLJDQ'LVWULFW¶V-XQLRU&RPSHWLWLRQ&RPPLWWHHZLOOQRZPHHWWRGLVFXVVWKLVUXOH FKDQJHDQGGHWHUPLQHKRZWKH\SODQWRPRYHIRUZDUGWREHVWXWLOL]HWKH4XLFN6WDUWIRUPDWWRGHYHORS SOD\HUVDQGXQGHUORFDOO\:HZLOOFRQVLGHUPLUURULQJWKH0LGZHVW6HFWLRQE\DGGLQJDOHYHO WRRXU 'LVWULFW7RXUQDPHQWVWUXFWXUHDQGHQKDQFHWKHFKDQJHWRLQFOXGH4XLFN6WDUWOHDJXHVDQGSRVVLEO\D 4XLFN6WDUW7RXUQDPHQW&LUFXLW
:HDUHH[FLWHGDERXWWKLVFKDQJHLQ \RXWKWHQQLVDQGORRNIRUZDUGWRWKH EHQHILWVRXUSOD\HUVZLOOLQFXU:DWFKRXU QH[W6(07$³&RXUW5HSRUWHU´IRUDOOWKHQHZ IHDWXUHVRIDQGXQGHUWHQQLVLQ )ROORZXVRQ
867$VHPLFKLJDQ
867$6RXWKHDVW0LFKLJDQ
,17+,6,668(
867$-U7HDP7HQQLV 6HFWLRQDO&KDPSLRQVKLS5HVXOWV 6HDVRQ6HWWR%HJLQ 5HFUHDWLRQDO&RDFK:RUNVKRS6FKHGXOHG 867$$GXOW/HDJXH7HQQLV 1DWLRQDO&KDPSLRQVKLS7HDPV 6HFWLRQDO&KDPSLRQVKLS7HDPV 6HFWLRQDO&KDPSLRQVKLS6U7HDPV 'LVWULFW&KDPSLRQVKLS7HDPV 0L[HG'RXEOHV'LVWULFW&KDPSLRQV 1(7&KDPSLRQVKLS6HULHV1RYLFH7RXUQDPHQW 6FKHGXOHIRU
³7RLQWURGXFHSURPRWH GHYHORSWKHJDPHRIWHQQLVZLWKLQ6RXWKHDVWHUQ0LFKLJDQ´
3J 3J 3J 3J 3J 3J 3J 3J 3J
6287+($67(51 0,&+,*$1',675,&7
4T'#/'00+5'%6+10#.*#/2+105*+25
)LQLVKLQJRXUVHDVRQLQ0DUFKRXU'LVWULFW&KDPSLRQDQG)LQDOLVWWHDPVQHHGHGWRZDLWXQWLO $XJXVWIRUWKHLUVKRWDWEHFRPLQJWKHQH[W0LGZHVW&KDPSLRQKHDGLQJWR1DWLRQDOV
$GYDQFHG 3RUW+XURQ+LWWHUV
0,':(67&+$03,216
,QWHUPHGLDWH%ORRPILHOG3LVWRQV
0,':(67&+$03,216 +HDGLQJWR1DWLRQDOVLQ6XUSULVH$UL]RQDWKHZHHNHQGRI2FWUG
,QWHUPHGLDWH 6SRUWV&OXE1RYL1HWV )LQLVKHGUGLQ)OLJKW
,QWHUPHGLDWH%ORRPILHOG/LRQV )LQLVKHGQG2YHUDOO
$GYDQFHG 'HDUERUQ%DVHOLQHUV
$GYDQFHG 3RUW+XURQ%OLW]
)LQLVKHGWK2YHUDOO
)LQLVKHGQGLQ)OLJKW
$GYDQFHG 'HDUERUQ)'68V )LQLVKHGUG2YHUDOO
,QWHUPHGLDWH3RUW+XURQ+XVNLHV 3DJH
)LQLVKHGQGLQ)OLJKW
,QWHUPHGLDWH%ORRPILHOG7HQQLV7LJHUV )LQLVKHGQG2YHUDOO
6287+($67(51 0,&+,*$1',675,&7
GN6*^ i 6LQJOHVDQG'RXEOHV&RHG7UDYHO/HDJXHIRU-XQLRUV$JHV i )RXUDJHGLYLVLRQVZLWKGLIIHUHQWDELOLW\OHYHOV i 0DWFKHVRQFHDZHHNVWDUWLQJHQGRI2FWREHU i :LQQLQJWHDPVDGYDQFHWR'LVWULFW6HFWLRQDQG1DWLRQDO&KDPSLRQVKLSV i )HDWXULQJD1LNH'U\)LWXQLIRUPZLWKDQHZJLUOV FXWIRU
1,1+0#6'#/X%#..#2#46+%+2#6+0) 70+14'#/'00+5 #%+.+6;1^ $QQ$UERU5HF (G H[W &RQWDFW9DQGD6KDGLJLDQ %HYHUO\+LOOV&OXE &RQWDFW.ULVWHQ+DUULVRQ %LUPLQJKDP5DFTXHW&OXE &RQWDFW-RKQ.DQ\R %ORRPILHOG7HQQLV&OXE &RQWDFW.ULVWLQD(PHUVRQ 7KH&KLSSHZD&OXE &RQWDFW&UDLJ&DSHOOL 'HDUERUQ5DFTXHW +HDOWK &RQWDFW-HUU\(VFKHFN 'HHU/DNH$WKOHWLF&OXE &RQWDFW*HRUJH/RZH 3DJH
'HWURLW5HFUHDWLRQ &RQWDFW0HOYLQ)RUHPDQ (DVWVLGH7HQQLV&OXE &RQWDFW0DUN0LOOHU 7KH)DLUODQH&OXE &RQWDFW'DQ.UDXVH )DUPLQJWRQ7HQQLV&OXE &RQWDFW3DXO$ULV )UDQNOLQ$WKOHWLF&OXE &RQWDFW%UXFH6DZLFNL *URVVH,OH7HQQLV&HQWHU 3/$