/DZV

0D\

5(38%/,&$&712
$1$&7)857+(5675(1*7+(1,1*7+(62&,$/6(&85,7<
6<67(07+(5(%<$0(1',1*)257+,6385326(5(38%/,&$&7
12$6$0(1'('27+(5:,6(.12:1$67+(62&,$/
6(&85,7</$:

6(&7,21
5HSXEOLF$FW1RDVDPHQGHGRWKHUZLVHNQRZQ
DV WKH 6RFLDO 6HFXULW\ /DZ LV KHUHE\ IXUWKHU DPHQGHG WR UHDG DV
IROORZV
6(&7,21
6KRUW7LWOH  7KLV $FW VKDOO EH NQRZQ DV WKH
6RFLDO
6HFXULW\$FWRI

6(&7,21
'HFODUDWLRQRI3ROLF\,WLVWKHSROLF\RIWKH6WDWHWR
HVWDEOLVKGHYHORSSURPRWHDQGSHUIHFWDVRXQGDQGYLDEOHWD[H[HPSW
VRFLDO VHFXULW\ V\VWHP VXLWDEOH WR WKH QHHGV RI WKH SHRSOH WKURXJKRXW
WKH 3KLOLSSLQHV ZKLFK VKDOO SURPRWH VRFLDO MXVWLFH DQG SURYLGH
PHDQLQJIXO SURWHFWLRQ WR PHPEHUV DQG WKHLU EHQHILFLDULHV DJDLQVW WKH
KD]DUGV RI GLVDELOLW\ VLFNQHVV PDWHUQLW\ ROG DJH GHDWK DQG RWKHU
FRQWLQJHQFLHV UHVXOWLQJ LQ ORVV RI LQFRPH RU ILQDQFLDO EXUGHQ 7RZDUGV
WKLVHQGWKH6WDWHVKDOOHQGHDYRUWRH[WHQGVRFLDOVHFXULW\SURWHFWLRQWR
ZRUNHUVDQGWKHLUEHQHILFLDULHV

DERXWEODQN

6(&7,21 
6RFLDO 6HFXULW\ 6\VWHP  D 7R FDUU\ RXW WKH
SXUSRVHVRIWKLV$FWWKH6RFLDO6HFXULW\6\VWHPKHUHLQDIWHUUHIHUUHGWR
DV
666
 D FRUSRUDWH ERG\ ZLWK SULQFLSDO SODFH RI EXVLQHVV LQ 0HWUR
0DQLOD 3KLOLSSLQHV LV KHUHE\ FUHDWHG 7KH 666 VKDOO EH GLUHFWHG DQG
FRQWUROOHG E\ D 6RFLDO 6HFXULW\ &RPPLVVLRQ KHUHLQDIWHU UHIHUUHG WR DV

&RPPLVVLRQ
FRPSRVHGRIWKH6HFUHWDU\RI/DERUDQG(PSOR\PHQWRU
KLV GXO\ GHVLJQDWHG XQGHUVHFUHWDU\ WKH 666 SUHVLGHQW DQG VHYHQ 
DSSRLQWLYH PHPEHUV WKUHH  RI ZKRP VKDOO UHSUHVHQW WKH ZRUNHUV

JURXS DW OHDVW RQH  RI ZKRP VKDOO EH D ZRPDQ WKUHH  WKH
HPSOR\HUV
JURXSDWOHDVWRQHRIZKRPVKDOOEHDZRPDQDQGRQH
 WKH JHQHUDO SXEOLF ZKRVH UHSUHVHQWDWLYH VKDOO KDYH DGHTXDWH
NQRZOHGJHDQGH[SHULHQFHUHJDUGLQJVRFLDOVHFXULW\WREHDSSRLQWHGE\
WKH 3UHVLGHQW RI WKH 3KLOLSSLQHV 7KH VL[  PHPEHUV UHSUHVHQWLQJ
ZRUNHUV DQG HPSOR\HUV VKDOO EH FKRVHQ IURP DPRQJ WKH QRPLQHHV RI
ZRUNHUV
 DQG HPSOR\HUV
 RUJDQL]DWLRQV UHVSHFWLYHO\ 7KH &KDLUPDQ RI
WKH&RPPLVVLRQVKDOOEHGHVLJQDWHGE\WKH3UHVLGHQWRIWKH3KLOLSSLQHV
IURPDPRQJLWVPHPEHUV7KHWHUPRIWKHDSSRLQWLYHPHPEHUVVKDOOEH





/DZV

IURPDPRQJLWVPHPEHUV7KHWHUPRIWKHDSSRLQWLYHPHPEHUVVKDOOEH
WKUHH  \HDUV 3URYLGHG 7KDW WKH WHUPV RI WKH ILUVW VL[  DSSRLQWLYH
PHPEHUVVKDOOEHRQHWZRDQGWKUHH\HDUVIRUHYHU\WZR
PHPEHUV UHVSHFWLYHO\ 3URYLGHG IXUWKHU 7KDW WKH\ VKDOO FRQWLQXH WR
KROG RIILFH XQWLO WKHLU VXFFHVVRUV VKDOO KDYH EHHQ DSSRLQWHG DQG GXO\
TXDOLILHG$OOYDFDQFLHVSULRUWRWKHH[SLUDWLRQRIWKHWHUPVKDOOEHILOOHG
IRU WKH XQH[SLUHG WHUP RQO\ 7KH DSSRLQWLYH PHPEHUV RI WKH
&RPPLVVLRQ VKDOO UHFHLYH DW OHDVW WZR WKRXVDQG ILYH KXQGUHG SHVRV
3 SHU GLHP IRU HDFK PHHWLQJ DFWXDOO\ DWWHQGHG E\ WKHP EXW
QRW WR H[FHHG 7HQ WKRXVDQG SHVRV 3 D PRQWK 3URYLGHG
7KDW PHPEHUV RI WKH &RPPLVVLRQ ZKR KHDU DQG HYDOXDWH FDVHV
SHQGLQJEHIRUHWKH&RPPLVVLRQVKDOODOVRUHFHLYHDSHUGLHPRIDWOHDVW
7ZR WKRXVDQG ILYH KXQGUHG SHVRV 3 EXW QRW WR H[FHHG
)LIWHHQ WKRXVDQG SHVRV 3 D PRQWK 3URYLGHG IXUWKHU 7KDW
VDLG PHPEHUV RI WKH &RPPLVVLRQ VKDOO DOVR UHFHLYH UHDVRQDEOH
WUDQVSRUWDWLRQ DQG UHSUHVHQWDWLRQ DOORZDQFHV DV PD\ EH IL[HG E\ WKH
&RPPLVVLRQ EXW QRW WR H[FHHG 7HQ WKRXVDQG SHVRV 3 D
PRQWK
DLVDGF

E
7KH JHQHUDO FRQGXFW RI WKH RSHUDWLRQV DQG PDQDJHPHQW
IXQFWLRQV RI WKH 666 VKDOO EH YHVWHG LQ WKH 666 3UHVLGHQW ZKR VKDOO
VHUYHDVWKHFKLHIH[HFXWLYHRIILFHULPPHGLDWHO\UHVSRQVLEOHIRUFDUU\LQJ
RXW WKH SURJUDP RI WKH 666 DQG WKH SROLFLHV RI WKH &RPPLVVLRQ 7KH
666 3UHVLGHQW VKDOO EH D SHUVRQ ZKR KDV KDG SUHYLRXV H[SHULHQFH LQ
WHFKQLFDO DQG DGPLQLVWUDWLYH ILHOGV UHODWHG WR WKH SXUSRVHV RI WKLV $FW
+H VKDOO EH DSSRLQWHG E\ WKH 3UHVLGHQW RI WKH 3KLOLSSLQHV DQG VKDOO
UHFHLYHDVDODU\WREHIL[HGE\WKH&RPPLVVLRQZLWKWKHDSSURYDORIWKH
3UHVLGHQWRIWKH3KLOLSSLQHVSD\DEOHIURPWKHIXQGVRIWKH666
F
7KH &RPPLVVLRQ XSRQ WKH UHFRPPHQGDWLRQ RI WKH 666
3UHVLGHQWVKDOODSSRLQWDQDFWXDU\DQGVXFKRWKHUSHUVRQQHODVPD\EH
GHHPHGQHFHVVDU\IL[WKHLUUHDVRQDEOHFRPSHQVDWLRQDOORZDQFHVDQG
RWKHU EHQHILWV SUHVFULEH WKHLU GXWLHV DQG HVWDEOLVK VXFK PHWKRGV DQG
SURFHGXUHV DV PD\ EH QHFHVVDU\ WR LQVXUH WKH HIILFLHQW KRQHVW DQG
HFRQRPLFDO DGPLQLVWUDWLRQ RI WKH SURYLVLRQV DQG SXUSRVHV RI WKLV $FW
3URYLGHG KRZHYHU 7KDW WKH SHUVRQQHO RI WKH 666 EHORZ WKH UDQN RI
9LFH3UHVLGHQW VKDOO EH DSSRLQWHG E\ WKH 666 3UHVLGHQW 3URYLGHG
IXUWKHU 7KDW WKH SHUVRQQHO DSSRLQWHG E\ WKH 666 3UHVLGHQW H[FHSW
WKRVH EHORZ WKH UDQN RI DVVLVWDQW PDQDJHU VKDOO EH VXEMHFW WR WKH
FRQILUPDWLRQ E\ WKH &RPPLVVLRQ 3URYLGHGIXUWKHU 7KDW WKH SHUVRQQHO
RI WKH 666 VKDOO EH VHOHFWHG RQO\ IURP FLYLO VHUYLFH HOLJLEOHV DQG EH
VXEMHFWWRFLYLOVHUYLFHUXOHVDQGUHJXODWLRQV3URYLGHGILQDOO\7KDWWKH
666VKDOOEHH[HPSWIURPWKHSURYLVLRQVRI5HSXEOLF$FW1RDQG
5HSXEOLF$FW1R

DERXWEODQN

6(&7,21
3RZHUVDQG'XWLHVRIWKH&RPPLVVLRQDQG666D
7KH &RPPLVVLRQ  )RU WKH DWWDLQPHQW RI LWV PDLQ REMHFWLYHV DV VHW
IRUWK LQ 6HFWLRQ  KHUHRI WKH &RPPLVVLRQ VKDOO KDYH WKH IROORZLQJ





/DZV

IRUWK LQ 6HFWLRQ  KHUHRI WKH &RPPLVVLRQ VKDOO KDYH WKH IROORZLQJ
SRZHUVDQGGXWLHV

7RDGRSWDPHQGDQGUHVFLQGVXEMHFWWRWKHDSSURYDO
RIWKH3UHVLGHQWRIWKH3KLOLSSLQHVVXFKUXOHVDQGUHJXODWLRQV
DVPD\EHQHFHVVDU\WRFDUU\RXWWKHSURYLVLRQVDQGSXUSRVHV
RIWKLV$FW

7R HVWDEOLVK D SURYLGHQW IXQG IRU WKH PHPEHUV ZKLFK
ZLOO FRQVLVW RI YROXQWDU\ FRQWULEXWLRQV RI HPSOR\HUV DQGRU
HPSOR\HHV VHOIHPSOR\HG DQG YROXQWDU\ PHPEHUV DQG WKHLU
HDUQLQJVIRUWKHSD\PHQWRIEHQHILWVWRVXFKPHPEHUVRUWKHLU
EHQHILFLDULHV VXEMHFW WR VXFK UXOHV DQG UHJXODWLRQV DV LW PD\
SURPXOJDWHDQGDSSURYHGE\WKH3UHVLGHQWRIWKH3KLOLSSLQHV

7R PDLQWDLQ D 3URYLGHQW )XQG ZKLFK FRQVLVWV RI
FRQWULEXWLRQV PDGH E\ ERWK WKH 666 DQG LWV RIILFLDOV DQG
HPSOR\HHV DQG WKHLU HDUQLQJV IRU WKH SD\PHQW RI EHQHILWV WR
VXFK RIILFLDOV DQG HPSOR\HHV RU WKHLU KHLUV XQGHU VXFK WHUPV
DQGFRQGLWLRQVDVLWPD\SUHVFULEH

7RDSSURYHUHVWUXFWXULQJSURSRVDOVIRUWKHSD\PHQWRI
GXH EXW XQUHPLWWHG FRQWULEXWLRQV DQG XQSDLG ORDQ
DPRUWL]DWLRQV XQGHU VXFK WHUPV DQG FRQGLWLRQV DV LW PD\
SUHVFULEH

7R DXWKRUL]H FRRSHUDWLYHV UHJLVWHUHG ZLWK WKH
FRRSHUDWLYH GHYHORSPHQW DXWKRULW\ RU DVVRFLDWLRQV UHJLVWHUHG
ZLWK WKH DSSURSULDWH JRYHUQPHQW DJHQF\ WR DFW DV FROOHFWLQJ
DJHQWV RI WKH 666 ZLWK UHVSHFW WR WKHLU PHPEHUV 3URYLGHG
7KDW WKH 666 VKDOO DFFUHGLW WKH FRRSHUDWLYH RU DVVRFLDWLRQ
3URYLGHG IXUWKHU 7KDW WKH SHUVRQV DXWKRUL]HG WR FROOHFW DUH
ERQGHG

7R FRPSURPLVH RU UHOHDVH LQ ZKROH RU LQ SDUW DQ\
LQWHUHVWSHQDOW\RUDQ\FLYLOOLDELOLW\WR666LQFRQQHFWLRQZLWK
WKH LQYHVWPHQWV DXWKRUL]HG XQGHU 6HFWLRQ  KHUHRI XQGHU
VXFK WHUPV DQG FRQGLWLRQV DV LW PD\ SUHVFULEH DQG DSSURYHG
E\WKH3UHVLGHQWRIWKH3KLOLSSLQHVDQG

7RDSSURYHFRQILUPSDVVXSRQRUUHYLHZDQ\DQGDOO
DFWLRQVRIWKH666LQWKHSURSHUDQGQHFHVVDU\H[HUFLVHRILWV
SRZHUVDQGGXWLHVKHUHLQDIWHUHQXPHUDWHG

E
7KH 6RFLDO 6HFXULW\ 6\VWHP  6XEMHFW WR WKH SURYLVLRQ RI
6HFWLRQ IRXU  SDUDJUDSK VHYHQ  KHUHRI WKH 666 VKDOO KDYH WKH
IROORZLQJSRZHUVDQGGXWLHV

DERXWEODQN


7R VXEPLW DQQXDOO\ QRW ODWHU WKDQ $SULO  D SXEOLF
UHSRUWWRWKH3UHVLGHQWRIWKH3KLOLSSLQHVDQGWRWKH&RQJUHVV
RI WKH 3KLOLSSLQHV FRYHULQJ LWV DFWLYLWLHV LQ WKH DGPLQLVWUDWLRQ





/DZV

RI WKH 3KLOLSSLQHV FRYHULQJ LWV DFWLYLWLHV LQ WKH DGPLQLVWUDWLRQ

DQG HQIRUFHPHQW RI WKLV $FW GXULQJ WKH SUHFHGLQJ \HDU
LQFOXGLQJ LQIRUPDWLRQ DQG UHFRPPHQGDWLRQV RQ EURDG SROLFLHV
IRUWKHGHYHORSPHQWDQGSHUIHFWLRQRIWKHSURJUDPRIWKH666
FG


7RUHTXLUHWKHDFWXDU\WRVXEPLWDYDOXDWLRQUHSRUWRQ
WKH 666 EHQHILW SURJUDP HYHU\ IRXU  \HDUV RU PRUH
IUHTXHQWO\ DV PD\ EH QHFHVVDU\ WR XQGHUWDNH WKH QHFHVVDU\
DFWXDULDO VWXGLHV DQG FDOFXODWLRQV FRQFHUQLQJ LQFUHDVHV LQ
EHQHILWVWDNLQJLQWRDFFRXQWLQIODWLRQDQGWKHILQDQFLDOVWDELOLW\
RI WKH 666 DQG WR SURYLGH IRU IHDVLEOH LQFUHDVHV LQ EHQHILWV
HYHU\IRXU\HDUVLQFOXGLQJWKHDGGLWLRQRIQHZRQHVXQGHU
VXFK UXOHV DQG UHJXODWLRQV DV WKH &RPPLVVLRQ PD\ DGRSW
VXEMHFW WR WKH DSSURYDO RI WKH 3UHVLGHQW RI WKH 3KLOLSSLQHV
3URYLGHG 7KDW WKH DFWXDULDO VRXQGQHVV RI WKH UHVHUYH IXQG
VKDOOEHJXDUDQWHHG3URYLGHGIXUWKHU7KDWVXFKLQFUHDVHVLQ
EHQHILWV VKDOO QRW UHTXLUH DQ\ LQFUHDVH LQ WKH UDWH RI
FRQWULEXWLRQ

7R HVWDEOLVK RIILFHV RI WKH 666 WR FRYHU DV PDQ\
SURYLQFHV FLWLHV DQG FRQJUHVVLRQDO GLVWULFWV ZKHQHYHU DQG
ZKHUHYHULWPD\EHH[SHGLHQWQHFHVVDU\DQGIHDVLEOHDQGWR
LQVSHFWRUFDXVHWREHLQVSHFWHGSHULRGLFDOO\VXFKRIILFHV

7RHQWHULQWRDJUHHPHQWVRUFRQWUDFWVIRUVXFKVHUYLFH
DQGDLGDVPD\EHQHHGHGIRUWKHSURSHUHIILFLHQWDQGVWDEOH
DGPLQLVWUDWLRQRIWKH666

7RDGRSWIURPWLPHWRWLPHDEXGJHWRIH[SHQGLWXUHV
LQFOXGLQJ VDODULHV RI SHUVRQQHO DJDLQVW DOO IXQGV DYDLODEOH WR
WKH666XQGHUWKLV$FW

7R VHW XS LWV DFFRXQWLQJ V\VWHP DQG SURYLGH WKH
QHFHVVDU\SHUVRQQHOWKHUHIRU

7R UHTXLUH UHSRUWV FRPSLODWLRQV DQG DQDO\VHV RI
VWDWLVWLFDO DQG HFRQRPLF GDWD DQG WR PDNH LQYHVWLJDWLRQ DV
PD\EHQHHGHGIRUWKHSURSHUDGPLQLVWUDWLRQDQGGHYHORSPHQW
RIWKH666

7R DFTXLUH DQG GLVSRVH RI SURSHUW\ UHDO RU SHUVRQDO
ZKLFKPD\EHQHFHVVDU\RUH[SHGLHQWIRUWKHDWWDLQPHQWRIWKH
SXUSRVHVRIWKLV$FW

DERXWEODQN


7R DFTXLUH UHFHLYH RU KROG E\ ZD\ RI SXUFKDVH
H[SURSULDWLRQ RU RWKHUZLVH SXEOLF RU SULYDWH SURSHUW\ IRU WKH
SXUSRVH RI XQGHUWDNLQJ KRXVLQJ SURMHFWV SUHIHUDEO\ IRU WKH
EHQHILW RI ORZLQFRPH PHPEHUV DQG IRU WKH PDLQWHQDQFH RI
KRVSLWDOV DQG LQVWLWXWLRQV IRU WKH VLFN DJHG DQG GLVDEOHG DV
ZHOODVVFKRROVIRUWKHPHPEHUVDQGWKHLULPPHGLDWHIDPLOLHV





/DZV

ZHOODVVFKRROVIRUWKHPHPEHUVDQGWKHLULPPHGLDWHIDPLOLHV


7RVXHDQGEHVXHGLQFRXUWDQG


7RSHUIRUPVXFKRWKHUFRUSRUDWHDFWVDVLWPD\GHHP
DSSURSULDWHIRUWKHSURSHUHQIRUFHPHQWRIWKLV$FW

6(&7,21 
6HWWOHPHQW RI 'LVSXWHV  D $Q\ GLVSXWH DULVLQJ
XQGHU WKLV $FW ZLWK UHVSHFW WR FRYHUDJH EHQHILWV FRQWULEXWLRQV DQG
SHQDOWLHV WKHUHRQ RU DQ\ RWKHU PDWWHU UHODWHG WKHUHWR VKDOO EH
FRJQL]DEOHE\WKH&RPPLVVLRQDQGDQ\FDVHILOHGZLWKUHVSHFWWKHUHWR
VKDOOEHKHDUGE\WKH&RPPLVVLRQRUDQ\RILWVPHPEHUVRUE\KHDULQJ
RIILFHUV GXO\ DXWKRUL]HG E\ WKH &RPPLVVLRQ DQG GHFLGHG ZLWKLQ WKH
PDQGDWRU\ SHULRG RI WZHQW\  GD\V DIWHU WKH VXEPLVVLRQ RI WKH
HYLGHQFH 7KH ILOLQJ GHWHUPLQDWLRQ DQG VHWWOHPHQW RI GLVSXWHV VKDOO EH
JRYHUQHGE\WKHUXOHVDQGUHJXODWLRQVSURPXOJDWHGE\WKH&RPPLVVLRQ

E
$SSHDO WR &RXUWV  $Q\ GHFLVLRQ RI WKH &RPPLVVLRQ LQ WKH
DEVHQFHRIDQDSSHDOWKHUHIURPDVKHUHLQSURYLGHGVKDOOEHFRPHILQDO
DQGH[HFXWRU\ILIWHHQGD\VDIWHUWKHGDWHRIQRWLILFDWLRQDQGMXGLFLDO
UHYLHZ WKHUHRI VKDOO EH SHUPLWWHG RQO\ DIWHU DQ\ SDUW\ FODLPLQJ WR EH
DJJULHYHGWKHUHE\KDVH[KDXVWHGKLVUHPHGLHVEHIRUHWKH&RPPLVVLRQ
7KH &RPPLVVLRQ VKDOO EH GHHPHG WR EH D SDUW\ WR DQ\ MXGLFLDO DFWLRQ
LQYROYLQJ DQ\ VXFK GHFLVLRQ DQG PD\ EH UHSUHVHQWHG E\ DQ DWWRUQH\
HPSOR\HGE\WKH&RPPLVVLRQRUZKHQUHTXHVWHGE\WKH&RPPLVVLRQ
E\WKH6ROLFLWRU*HQHUDORUDQ\SXEOLFSURVHFXWRU
F
&RXUW 5HYLHZ  7KH GHFLVLRQ RI WKH &RPPLVVLRQ XSRQ DQ\
GLVSXWHGPDWWHUPD\EHUHYLHZHGERWKXSRQWKHODZDQGWKHIDFWVE\WKH
&RXUW RI $SSHDOV )RU WKH SXUSRVH RI VXFK UHYLHZ WKH SURFHGXUH
FRQFHUQLQJ DSSHDOV IURP WKH 5HJLRQDO 7ULDO &RXUW VKDOO EH IROORZHG DV
IDUDVSUDFWLFDEOHDQGFRQVLVWHQWZLWKWKHSXUSRVHVRIWKLV$FW$SSHDO
IURP D GHFLVLRQ RI WKH &RPPLVVLRQ PXVW EH WDNHQ ZLWKLQ ILIWHHQ 
GD\V IURP QRWLILFDWLRQ RI VXFK GHFLVLRQ ,I WKH GHFLVLRQ RI WKH
&RPPLVVLRQLQYROYHVRQO\TXHVWLRQVRIODZWKHVDPHVKDOOEHUHYLHZHG
E\ WKH 6XSUHPH &RXUW 1R DSSHDO ERQG VKDOO EH UHTXLUHG 7KH FDVH
VKDOO EH KHDUG LQ D VXPPDU\ PDQQHU DQG VKDOO WDNH SUHFHGHQFH RYHU
DOOFDVHVH[FHSWWKDWLQWKH6XSUHPH&RXUWFULPLQDOFDVHVZKHUHLQOLIH
LPSULVRQPHQW RU GHDWK KDV EHHQ LPSRVHG E\ WKH WULDO FRXUW VKDOO WDNH
SUHFHGHQFH 1R DSSHDO VKDOO DFW DV D VXSHUVHGHDV RU D VWD\ RI WKH
RUGHURIWKH&RPPLVVLRQXQOHVVWKH&RPPLVVLRQLWVHOIRUWKH&RXUWRI
$SSHDOVRUWKH6XSUHPH&RXUWVKDOOVRRUGHU
G
([HFXWLRQRI'HFLVLRQV  7KH &RPPLVVLRQ PD\ PRWX SURSULR
RURQPRWLRQRIDQ\LQWHUHVWHGSDUW\LVVXHDZULWRIH[HFXWLRQWRHQIRUFH
DQ\RILWVGHFLVLRQVRUDZDUGVDIWHULWKDVEHFRPHILQDODQGH[HFXWRU\
LQ WKH VDPH PDQQHU DV WKH GHFLVLRQ RI WKH 5HJLRQDO 7ULDO &RXUW E\
GLUHFWLQJWKHFLW\RUSURYLQFLDOVKHULIIRUWKHVKHULIIZKRPLWPD\DSSRLQW
DERXWEODQN





/DZV
GLUHFWLQJWKHFLW\RUSURYLQFLDOVKHULIIRUWKHVKHULIIZKRPLWPD\DSSRLQW
WRHQIRUFHVXFKILQDOGHFLVLRQRUH[HFXWHVXFKZULWDQGDQ\SHUVRQZKR
VKDOO IDLO RU UHIXVH WR FRPSO\ ZLWK VXFK GHFLVLRQ DZDUG RU ZULW DIWHU
EHLQJ UHTXLUHG WR GR VR VKDOO XSRQ DSSOLFDWLRQ E\ WKH &RPPLVVLRQ
SXUVXDQWWR5XOHRIWKH5XOHVRI&RXUWEHSXQLVKHGIRUFRQWHPSW

6(&7,21 
$XGLWRU DQG &RXQVHO  D 7KH &KDLUPDQ RI WKH
&RPPLVVLRQ RQ $XGLW VKDOO EH WKH H[RIILFLR $XGLWRU RI WKH 666 +H RU
KLV UHSUHVHQWDWLYH VKDOO FKHFN DQG DXGLW DOO WKH DFFRXQWV IXQGV DQG
SURSHUWLHV RI WKH 666 LQ WKH VDPH PDQQHU DQG DV IUHTXHQWO\ DV WKH
DFFRXQWV IXQGV DQG SURSHUWLHV RI WKH JRYHUQPHQW DUH FKHFNHG DQG
DXGLWHGXQGHUH[LVWLQJODZVDQGKHVKDOOKDYHDVIDUDVSUDFWLFDEOHWKH
VDPH SRZHUV DQG GXWLHV DV KH KDV ZLWK UHVSHFW WR WKH FKHFNLQJ DQG
DXGLWLQJRISXEOLFDFFRXQWVIXQGVDQGSURSHUWLHVLQJHQHUDO
E
7KH 6HFUHWDU\ RI -XVWLFH VKDOO EH WKH H[RIILFLR FRXQVHO RI WKH
666 +H RU KLV UHSUHVHQWDWLYH VKDOO DFW DV OHJDO DGYLVHU DQG FRXQVHO
WKHUHRI
DLVDGF

6(&7,21 
2DWKV :LWQHVVHV DQG 3URGXFWLRQ RI 5HFRUGV
:KHQ DXWKRUL]HG E\ WKH &RPPLVVLRQ DQ RIILFLDO RU HPSOR\HH WKHUHRI
VKDOO KDYH WKH SRZHU WR DGPLQLVWHU RDWK DQG DIILUPDWLRQ WDNH
GHSRVLWLRQV FHUWLI\ WR RIILFLDO DFWV DQG LVVXH VXESRHQD DQG VXESRHQD
GXFHVWHFXPWRFRPSHOWKHDWWHQGDQFHRIZLWQHVVHVDQGWKHSURGXFWLRQ
RI ERRNV SDSHUV FRUUHVSRQGHQFH DQG RWKHU UHFRUGV GHHPHG
QHFHVVDU\ DV HYLGHQFH LQ FRQQHFWLRQ ZLWK DQ\ TXHVWLRQ DULVLQJ XQGHU
WKLV$FW$Q\FDVHRIFRQWXPDF\VKDOOEHGHDOWZLWKE\WKH&RPPLVVLRQ
LQDFFRUGDQFHZLWKODZ
6(&7,21 
7HUPV 'HILQHG  )RU WKH SXUSRVHV RI WKLV $FW WKH
IROORZLQJ WHUPV VKDOO XQOHVV WKH FRQWH[W LQGLFDWHV RWKHUZLVH KDYH WKH
IROORZLQJPHDQLQJV
D

6667KH6RFLDO6HFXULW\6\VWHPFUHDWHGE\WKLV$FW

E
&RPPLVVLRQ  7KH 6RFLDO 6HFXULW\ &RPPLVVLRQ DV KHUHLQ
FUHDWHG
F
(PSOR\HU$Q\SHUVRQQDWXUDORUMXULGLFDOGRPHVWLFRUIRUHLJQ
ZKR FDUULHV RQ LQ WKH 3KLOLSSLQHV DQ\ WUDGH EXVLQHVV LQGXVWU\
XQGHUWDNLQJ RU DFWLYLW\ RI DQ\ NLQG DQG XVHV WKH VHUYLFHV RI DQRWKHU
SHUVRQZKRLVXQGHUKLVRUGHUVDVUHJDUGVWKHHPSOR\PHQWH[FHSWWKH
*RYHUQPHQW DQG DQ\ RI LWV SROLWLFDO VXEGLYLVLRQV EUDQFKHV RU
LQVWUXPHQWDOLWLHV LQFOXGLQJ FRUSRUDWLRQV RZQHG RU FRQWUROOHG E\ WKH
*RYHUQPHQW 3URYLGHG 7KDW D VHOIHPSOR\HG SHUVRQ VKDOO EH ERWK
HPSOR\HHDQGHPSOR\HUDWWKHVDPHWLPH

DERXWEODQN

G
(PSOR\HH$Q\SHUVRQZKRSHUIRUPVVHUYLFHVIRUDQHPSOR\HU
LQ ZKLFK HLWKHU RU ERWK PHQWDO DQG SK\VLFDO HIIRUWV DUH XVHG DQG ZKR
UHFHLYHV FRPSHQVDWLRQ IRU VXFK VHUYLFHV ZKHUH WKHUH LV DQ HPSOR\HU
HPSOR\HHUHODWLRQVKLS3URYLGHG7KDWDVHOIHPSOR\HGSHUVRQVKDOOEH





/DZV

HPSOR\HHUHODWLRQVKLS3URYLGHG7KDWDVHOIHPSOR\HGSHUVRQVKDOOEH
ERWKHPSOR\HHDQGHPSOR\HUDWWKHVDPHWLPH
H

'HSHQGHQWV7KHGHSHQGHQWVVKDOOEHWKHIROORZLQJ

7KH OHJDO VSRXVH HQWLWOHG E\ ODZ WR UHFHLYH VXSSRUW
IURPWKHPHPEHU

7KH OHJLWLPDWH OHJLWLPDWHG RU OHJDOO\ DGRSWHG DQG
LOOHJLWLPDWHFKLOGZKRLVXQPDUULHGQRWJDLQIXOO\HPSOR\HGDQG
KDV QRW UHDFKHG WZHQW\RQH \HDUV  RI DJH RU LI RYHU
WZHQW\RQH\HDUVRIDJHKHLVFRQJHQLWDOO\RUZKLOHVWLOOD
PLQRU KDV EHHQ SHUPDQHQWO\ LQFDSDFLWDWHG DQG LQFDSDEOH RI
VHOIVXSSRUWSK\VLFDOO\RUPHQWDOO\DQG

7KH SDUHQW ZKR LV UHFHLYLQJ UHJXODU VXSSRUW IURP WKH
PHPEHU

I
&RPSHQVDWLRQ  $OO DFWXDO UHPXQHUDWLRQ IRU HPSOR\PHQW
LQFOXGLQJ WKH PDQGDWHG FRVW RI OLYLQJ DOORZDQFH DV ZHOO DV WKH FDVK
YDOXHRIDQ\UHPXQHUDWLRQSDLGLQDQ\PHGLXPRWKHUWKDQFDVKH[FHSW
WKDWSDUWRIWKHUHPXQHUDWLRQUHFHLYHGGXULQJWKHPRQWKLQH[FHVVRIWKH
PD[LPXPVDODU\FUHGLWDVSURYLGHGXQGHU6HFWLRQ(LJKWHHQRIWKLV$FW
J
0RQWKO\ VDODU\ FUHGLW  7KH FRPSHQVDWLRQ EDVH IRU
FRQWULEXWLRQV DQG EHQHILWV DV LQGLFDWHG LQ WKH VFKHGXOH LQ 6HFWLRQ
(LJKWHHQRIWKLV$FW
K
0RQWKO\7KHSHULRGIURPRQHHQGRIWKHODVWSD\UROOSHULRGRI
WKHSUHFHGLQJPRQWKWRWKHHQGRIWKHODVWSD\UROOSHULRGRIWKHFXUUHQW
PRQWK LI FRPSHQVDWLRQ LV RQ KRXUO\ GDLO\ RU ZHHNO\ EDVLV LI RQ DQ\
RWKHUEDVLVPRQWKO\VKDOOPHDQDSHULRGRIRQHPRQWK
L
&RQWULEXWLRQ7KHDPRXQWSDLGWRWKH666E\DQGRQEHKDOIRI
WKHPHPEHULQDFFRUGDQFHZLWK6HFWLRQ(LJKWHHQRIWKLV$FW
M
(PSOR\PHQW  $Q\ VHUYLFH SHUIRUPHG E\ DQ HPSOR\HH IRU KLV
HPSOR\HUH[FHSW

(PSOR\PHQW SXUHO\ FDVXDO DQG QRW IRU WKH SXUSRVH RI
RFFXSDWLRQRUEXVLQHVVRIWKHHPSOR\HU

6HUYLFH SHUIRUPHG RQ RU LQ FRQQHFWLRQ ZLWK DQ DOLHQ
YHVVHOE\DQHPSOR\HHLIKHLVHPSOR\HGZKHQVXFKYHVVHOLV
RXWVLGHWKH3KLOLSSLQHV

6HUYLFH SHUIRUPHG LQ WKH HPSOR\ RI WKH 3KLOLSSLQH
*RYHUQPHQWRULQVWUXPHQWDOLW\RUDJHQF\WKHUHRI

6HUYLFH SHUIRUPHG LQ WKH HPSOR\ RI D IRUHLJQ
JRYHUQPHQW RU LQWHUQDWLRQDO RUJDQL]DWLRQ RU WKHLU ZKROO\
RZQHGLQVWUXPHQWDOLW\3URYLGHGKRZHYHU7KDWWKLVH[HPSWLRQ
QRWZLWKVWDQGLQJ DQ\ IRUHLJQ JRYHUQPHQW LQWHUQDWLRQDO
DERXWEODQN





QRWZLWKVWDQGLQJ DQ\ IRUHLJQ/DZVJRYHUQPHQW LQWHUQDWLRQDO

RUJDQL]DWLRQ RU WKHLU ZKROO\RZQHG LQVWUXPHQWDOLW\ HPSOR\LQJ
ZRUNHUVLQWKH3KLOLSSLQHVRUHPSOR\LQJ)LOLSLQRVRXWVLGHRIWKH
3KLOLSSLQHV PD\ HQWHU LQWR DQ DJUHHPHQW ZLWK WKH 3KLOLSSLQH
*RYHUQPHQW IRU WKH LQFOXVLRQ RI VXFK HPSOR\HHV LQ WKH 666
H[FHSW WKRVH DOUHDG\ FRYHUHG E\ WKHLU UHVSHFWLYH FLYLO VHUYLFH
UHWLUHPHQWV\VWHPV3URYLGHGIXUWKHU 7KDW WKH WHUPV RI VXFK
DJUHHPHQW VKDOO FRQIRUP ZLWK WKH SURYLVLRQV RI WKLV $FW RQ
FRYHUDJH DQG DPRXQW RI SD\PHQW RI FRQWULEXWLRQV DQG
EHQHILWV3URYLGHGILQDOO\7KDWWKHSURYLVLRQVRIWKLV$FWVKDOO
EHVXSSOHPHQWDU\WRDQ\VXFKDJUHHPHQWDQG

6XFKRWKHUVHUYLFHVSHUIRUPHGE\WHPSRUDU\DQGRWKHU
HPSOR\HHV ZKLFK PD\ EH H[FOXGHG E\ UHJXODWLRQ RI WKH
&RPPLVVLRQ(PSOR\HHVRIERQDILGHLQGHSHQGHQWFRQWUDFWRUV
VKDOOQRWEHGHHPHGHPSOR\HHVRIWKHHPSOR\HUHQJDJLQJWKH
VHUYLFHVRIVDLGFRQWUDFWRUV

N
%HQHILFLDULHV  7KH GHSHQGHQW VSRXVH XQWLO KH RU VKH
UHPDUULHVWKHGHSHQGHQWOHJLWLPDWHOHJLWLPDWHGRUOHJDOO\DGRSWHGDQG
LOOHJLWLPDWH FKLOGUHQ ZKR VKDOO EH WKH SULPDU\ EHQHILFLDULHV RI WKH
PHPEHU 3URYLGHG 7KDW WKH GHSHQGHQW LOOHJLWLPDWH FKLOGUHQ VKDOO EH
HQWLWOHGWRILIW\SHUFHQWRIWKHVKDUHRIWKHOHJLWLPDWHOHJLWLPDWHG
RUOHJDOO\DGRSWHGFKLOGUHQ3URYLGHGIXUWKHU7KDWLQWKHDEVHQFHRIWKH
GHSHQGHQW OHJLWLPDWH OHJLWLPDWHG RU OHJDOO\ DGRSWHG FKLOGUHQ RI WKH
PHPEHUKLVKHUGHSHQGHQWLOOHJLWLPDWHFKLOGUHQVKDOOEHHQWLWOHGWRRQH
KXQGUHG SHUFHQW  RI WKH EHQHILWV ,Q WKHLU DEVHQFH WKH
GHSHQGHQW SDUHQWV ZKR VKDOO EH WKH VHFRQGDU\ EHQHILFLDULHV RI WKH
PHPEHU ,Q WKH DEVHQFH RI DOO RI WKH IRUHJRLQJ DQ\ RWKHU SHUVRQ
GHVLJQDWHGE\WKHPHPEHUDVKLVKHUVHFRQGDU\EHQHILFLDU\
O
&RQWLQJHQF\  7KH UHWLUHPHQW GHDWK GLVDELOLW\ LQMXU\ RU
VLFNQHVVDQGPDWHUQLW\RIWKHPHPEHU
P
$YHUDJHPRQWKO\VDODU\FUHGLW7KHUHVXOWREWDLQHGE\GLYLGLQJ
WKH VXP RI WKH ODVW VL[W\  PRQWKO\ VDODU\ FUHGLWV LPPHGLDWHO\
SUHFHGLQJ WKH VHPHVWHU RI FRQWLQJHQF\ E\ VL[W\  RU WKH UHVXOW
REWDLQHGE\GLYLGLQJWKHVXPRIDOOWKHPRQWKO\VDODU\FUHGLWVSDLGSULRU
WRWKHVHPHVWHURIFRQWLQJHQF\E\WKHQXPEHURIPRQWKO\FRQWULEXWLRQV
SDLGLQWKHVDPHSHULRGZKLFKHYHULVJUHDWHU3URYLGHG7KDWWKHLQMXU\
RU VLFNQHVV ZKLFK FDXVHG WKH GLVDELOLW\ VKDOO EH GHHPHG DV WKH
SHUPDQHQWGLVDELOLW\IRUWKHSXUSRVHRIFRPSXWLQJWKHDYHUDJHPRQWKO\
VDODU\FUHGLW
Q
$YHUDJHGDLO\VDODU\FUHGLW7KHUHVXOWREWDLQHGE\GLYLGLQJWKH
VXP RI WKH VL[  KLJKHVW PRQWKO\ VDODU\ FUHGLWV LQ WKH WZHOYHPRQWK
SHULRG LPPHGLDWHO\ SUHFHGLQJ WKH VHPHVWHU RI FRQWLQJHQF\ E\ RQH
KXQGUHGHLJKW\
FGW

DERXWEODQN

R

6HPHVWHU$SHULRGRIWZRFRQVHFXWLYHTXDUWHUVHQGLQJLQ





/DZV

R
6HPHVWHU$SHULRGRIWZRFRQVHFXWLYHTXDUWHUVHQGLQJLQ
WKHTXDUWHURIFRQWLQJHQF\
S
4XDUWHU  $ SHULRG RI WKUHH  FRQVHFXWLYH FDOHQGDU PRQWKV
HQGLQJRQWKHODVWGD\RI0DUFK-XQH6HSWHPEHUDQG'HFHPEHU
T
&UHGLWHG <HDUV RI 6HUYLFH  )RU D PHPEHU FRYHUHG SULRU WR
-DQXDU\QLQHWHHQKXQGUHGHLJKW\ILYHPLQXVWKHFDOHQGDU\HDURI
FRYHUDJH SOXV WKH QXPEHU RI FDOHQGDU \HDUV LQ ZKLFK VL[  RU PRUH
FRQWULEXWLRQVKDYHEHHQSDLGIURP-DQXDU\QLQHWHHQKXQGUHGHLJKW\ILYH
 XS WR WKH FDOHQGDU \HDU FRQWDLQLQJ WKH VHPHVWHU SULRU WR WKH
FRQWLQJHQF\ )RU D PHPEHU FRYHUHG LQ RU DIWHU -DQXDU\ QLQHWHHQ
KXQGUHG HLJKW\ ILYH  WKH QXPEHU RI FDOHQGDU \HDUV LQ ZKLFK VL[
RUPRUHFRQWULEXWLRQVKDYHEHHQSDLGIURPWKH\HDURIFRYHUDJHXS
WR WKH FDOHQGDU \HDU FRQWDLQLQJ WKH VHPHVWHU SULRU WR WKH FRQWLQJHQF\
3URYLGHG 7KDW WKH &RPPLVVLRQ PD\ SURYLGH IRU D GLIIHUHQW QXPEHU RI
FRQWULEXWLRQV LQ D FDOHQGDU \HDU IRU LW WR EH FRQVLGHUHG DV D FUHGLWHG
\HDURIVHUYLFH

U
0HPEHU7KHZRUNHUZKRLVFRYHUHGXQGHU6HFWLRQ1LQHDQG
6HFWLRQ1LQH$RIWKLV$FW
V
6HOIHPSOR\HG$Q\SHUVRQZKRVHLQFRPHLVQRWGHULYHGIURP
HPSOR\PHQW DV GHILQHG XQGHU WKLV $FW DV ZHOO DV WKRVH ZRUNHUV
HQXPHUDWHGLQ6HFWLRQ1LQH$KHUHRI
W
1HWHDUQLQJV1HWLQFRPHEHIRUHLQFRPHWD[HVSOXVQRQFDVK
FKDUJHV VXFK DV GHSUHFLDWLRQ DQG GHSOHWLRQ DSSHDULQJ LQ WKH UHJXODU
ILQDQFLDOVWDWHPHQWRIWKHLVVXLQJRUDVVXPLQJLQVWLWXWLRQ
X
)L[HG FKDUJHV  5HFXUULQJ H[SHQVH VXFK DV DPRUWL]DWLRQ RI
GHEW GLVFRXQW DQG UHQWDOV IRU OHDVHG SURSHUWLHV LQFOXGLQJ LQWHUHVW RQ
IXQGHGDQGXQIXQGHGGHEW

DERXWEODQN

6(&7,21 
&RYHUDJH  D &RYHUDJH LQ WKH 666 VKDOO EH
FRPSXOVRU\ XSRQ DOO HPSOR\HHV QRW RYHU VL[W\  \HDUV RI DJH DQG
WKHLU HPSOR\HUV 3URYLGHG 7KDW LQ WKH FDVH RI GRPHVWLF KHOSHUV WKHLU
PRQWKO\LQFRPHVKDOOQRWEHOHVVWKDQ2QHWKRXVDQGSHVRV3
D PRQWK 3URYLGHG IXUWKHU 7KDW DQ\ EHQHILW DOUHDG\ HDUQHG E\ WKH
HPSOR\HHV XQGHU SULYDWH EHQHILW SODQV H[LVWLQJ DW WKH WLPH RI WKH
DSSURYDO RI WKLV $FW VKDOO QRW EH GLVFRQWLQXHG UHGXFHG RU RWKHUZLVH
LPSDLUHG3URYLGHGIXUWKHU7KDWSULYDWHSODQVZKLFKDUHH[LVWLQJDQGLQ
IRUFH DW WKH WLPH RI FRPSXOVRU\ FRYHUDJH VKDOO EH LQWHJUDWHG ZLWK WKH
SODQRIWKH666LQVXFKDZD\ZKHUHWKHHPSOR\HU
VFRQWULEXWLRQWRKLV
SULYDWHSODQLVPRUHWKDQWKDWUHTXLUHGRIKLPLQWKLV$FWKHVKDOOSD\WR
WKH666RQO\WKHFRQWULEXWLRQUHTXLUHGRIKLPDQGKHVKDOOFRQWLQXHKLV
FRQWULEXWLRQWRVXFKSULYDWHSODQOHVVKLVFRQWULEXWLRQWRWKH666VRWKDW
WKHHPSOR\HU
VWRWDOFRQWULEXWLRQWRKLVEHQHILWSODQDQGWRWKH666VKDOO
EH WKH VDPH DV KLV FRQWULEXWLRQ WR KLV SULYDWH EHQHILW SODQ EHIRUH WKH





/DZV

EH WKH VDPH DV KLV FRQWULEXWLRQ WR KLV SULYDWH EHQHILW SODQ EHIRUH WKH
FRPSXOVRU\ FRYHUDJH 3URYLGHG IXUWKHU 7KDW DQ\ FKDQJHV
DGMXVWPHQWVPRGLILFDWLRQVHOLPLQDWLRQVRULPSURYHPHQWVLQWKHEHQHILWV
WR EH DYDLODEOH XQGHU WKH UHPDLQLQJ SULYDWH SODQ ZKLFK PD\ EH
QHFHVVDU\WRDGRSWE\UHDVRQRIWKHUHGXFHGFRQWULEXWLRQVWKHUHWRDVD
UHVXOW RI WKH LQWHJUDWLRQ VKDOO EH VXEMHFW WR DJUHHPHQWV EHWZHHQ WKH
HPSOR\HUV DQG HPSOR\HHV FRQFHUQHG 3URYLGHG IXUWKHU WKH SULYDWH
EHQHILWSODQZKLFKWKHHPSOR\HUVKDOOFRQWLQXHIRUKLVHPSOR\HHVVKDOO
UHPDLQ XQGHU WKH HPSOR\HU
V PDQDJHPHQW DQG FRQWURO XQOHVV WKHUH LV
DQH[LVWLQJDJUHHPHQWWRWKHFRQWUDU\3URYLGHGILQDOO\7KDWQRWKLQJLQ
WKLV$FWVKDOOEHFRQVWUXHGDVDOLPLWDWLRQRQWKHULJKWRIHPSOR\HUVDQG
HPSOR\HHV WR DJUHH RQ DQG DGRSW EHQHILWV ZKLFK DUH RYHU DQG DERYH
WKRVHSURYLGHGXQGHUWKLV$FW
E
6SRXVHV ZKR GHYRWH IXOO WLPH WR PDQDJLQJ WKH KRXVHKROG DQG
IDPLO\ DIIDLUV XQOHVV WKH\ DUH DOVR HQJDJHG LQ RWKHU YRFDWLRQ RU
HPSOR\PHQW ZKLFK LV VXEMHFW WR PDQGDWRU\ FRYHUDJH PD\ EH FRYHUHG
E\WKH666RQDYROXQWDU\EDVLV
FG

F
)LOLSLQRV UHFUXLWHG E\ IRUHLJQEDVHG HPSOR\HUV IRU HPSOR\PHQW
DEURDGPD\EHFRYHUHGE\WKH666RQDYROXQWDU\EDVLV
6(&7,21 $
&RPSXOVRU\ &RYHUDJH RI WKH 6HOI HPSOR\HG
&RYHUDJH LQ WKH 666 VKDOO EH FRPSXOVRU\ XSRQ VXFK VHOIHPSOR\HG
SHUVRQV DV PD\ EH GHWHUPLQHG E\ WKH &RPPLVVLRQ XQGHU VXFK UXOHV
DQG UHJXODWLRQV DV LW PD\ SUHVFULEH LQFOXGLQJ EXW QRW OLPLWHG WR WKH
IROORZLQJ


$OOVHOIHPSOR\HGSURIHVVLRQDOV



3DUWQHUVDQGVLQJOHSURSULHWRUVRIEXVLQHVVHV


$FWRUV DQG DFWUHVVHV GLUHFWRUV VFULSWZULWHUV DQG QHZV
FRUUHVSRQGHQWV ZKR GR QRW IDOO ZLWKLQ WKH GHILQLWLRQ RI WKH WHUP
HPSOR\HHLQ6HFGRIWKLV$FW


3URIHVVLRQDODWKOHWHVFRDFKHVWUDLQHUVDQGMRFNH\VDQG



,QGLYLGXDOIDUPHUVDQGILVKHUPHQ

8QOHVVRWKHUZLVHVSHFLILHGKHUHLQDOOSURYLVLRQVRIWKLV$FWDSSOLFDEOH
WR FRYHUHG HPSOR\HHV VKDOO DOVR EH DSSOLFDEOH WR WKH FRYHUHG VHOI
HPSOR\HGSHUVRQV
6(&7,21
(IIHFWLYH'DWHRI&RYHUDJH&RPSXOVRU\FRYHUDJH
RI WKH HPSOR\HU VKDOO WDNH HIIHFW RQ WKH ILUVW GD\ RI KLV RSHUDWLRQ DQG
WKDWRIWKHHPSOR\HHRQWKHGD\RIKLVHPSOR\PHQW3URYLGHG7KDWWKH
FRPSXOVRU\FRYHUDJHRIWKHVHOIHPSOR\HGSHUVRQVKDOOWDNHHIIHFWXSRQ
KLVUHJLVWUDWLRQZLWKWKH666

DERXWEODQN

6(&7,21 
(IIHFW RI 6HSDUDWLRQ IURP (PSOR\PHQW  :KHQ DQ
HPSOR\HH XQGHU FRPSXOVRU\ FRYHUDJH LV VHSDUDWHG IURP HPSOR\PHQW





/DZV

HPSOR\HH XQGHU FRPSXOVRU\ FRYHUDJH LV VHSDUDWHG IURP HPSOR\PHQW

KLV HPSOR\HU
V FRQWULEXWLRQ RQ KLV DFFRXQW DQG KLV REOLJDWLRQ WR SD\
FRQWULEXWLRQVDULVLQJIURPWKDWHPSOR\PHQWVKDOOFHDVHDWWKHHQGRIWKH
PRQWK RI VHSDUDWLRQ EXW VDLG HPSOR\HH VKDOO EH FUHGLWHG ZLWK DOO
FRQWULEXWLRQVSDLGRQKLVEHKDOIDQGHQWLWOHGWREHQHILWVDFFRUGLQJWRWKH
SURYLVLRQV RI WKLV $FW +H PD\ KRZHYHU FRQWLQXH WR SD\ WKH WRWDO
FRQWULEXWLRQVWRPDLQWDLQKLVULJKWWRIXOOEHQHILW
6(&7,21 $
(IIHFW RI ,QWHUUXSWLRQ RI %XVLQHVV RU 3URIHVVLRQDO
,QFRPH  ,I WKH VHOIHPSOR\HG PHPEHU UHDOL]HV QR LQFRPH LQ DQ\
JLYHQ PRQWK KH VKDOO QRW EH UHTXLUHG WR SD\ FRQWULEXWLRQV IRU WKDW
PRQWK +H PD\ KRZHYHU EH DOORZHG WR FRQWLQXH SD\LQJ FRQWULEXWLRQV
XQGHU WKH VDPH UXOHV DQG UHJXODWLRQV DSSOLFDEOH WR D VHSDUDWHG
HPSOR\HH PHPEHU 3URYLGHG 7KDW QR UHWURDFWLYH SD\PHQW RI
FRQWULEXWLRQV VKDOO EH DOORZHG RWKHU WKDQ DV SUHVFULEHG XQGHU 6HFWLRQ
7ZHQW\WZR$KHUHRI
6(&7,21 
0RQWKO\ 3HQVLRQ  D 7KH PRQWKO\ SHQVLRQ VKDOO
EHWKHKLJKHVWRIWKHIROORZLQJDPRXQWV

L

7KHVXPRIWKHIROORZLQJ
7KUHHKXQGUHGSHVRV3SOXV

LL
7ZHQW\ SHUFHQW  RI WKH DYHUDJH PRQWKO\ VDODU\
FUHGLWSOXV
LLL
7ZRSHUFHQWRIWKHDYHUDJHPRQWKO\VDODU\FUHGLW
IRUHDFKFUHGLWHG\HDURIVHUYLFHLQH[FHVVRIWHQ\HDUVRU

)RUW\ SHUFHQW  RI WKH DYHUDJH PRQWKO\ VDODU\
FUHGLWRU

2QH WKRXVDQG SHVRV 3 3URYLGHG 7KDW WKH
PRQWKO\ SHQVLRQ VKDOO LQ QR FDVH EH SDLG IRU DQ DJJUHJDWH
DPRXQWRIOHVVWKDQVL[W\PRQWKV

E
1RWZLWKVWDQGLQJWKHSUHFHGLQJSDUDJUDSKWKHPLQLPXPSHQVLRQ
VKDOO EH 2QH WKRXVDQG WZR KXQGUHG SHVRV 3 IRU PHPEHUV
ZLWK DW OHDVW WHQ  FUHGLWHG \HDUV RI VHUYLFH DQG 7ZR WKRXVDQG IRXU
KXQGUHGSHVRV3IRUWKRVHZLWKWZHQW\FUHGLWHG\HDUVRI
VHUYLFH
6(&7,21 $
'HSHQGHQWV
 3HQVLRQ  :KHUH PRQWKO\ SHQVLRQ
LVSD\DEOHRQDFFRXQWRIGHDWKSHUPDQHQWWRWDOGLVDELOLW\RUUHWLUHPHQW
GHSHQGHQWV
 SHQVLRQ HTXLYDOHQW WR WHQ SHUFHQW  RI WKH PRQWKO\
SHQVLRQ RU 7ZR KXQGUHG ILIW\ SHVRV 3 ZKLFKHYHU LV KLJKHU
VKDOODOVREHSDLGIRUHDFKGHSHQGHQWFKLOGFRQFHLYHGRQRUEHIRUHWKH
GDWH RI WKH FRQWLQJHQF\ EXW QRW H[FHHGLQJ ILYH  EHJLQQLQJ ZLWK WKH
\RXQJHVW DQG ZLWKRXW VXEVWLWXWLRQ 3URYLGHG 7KDW ZKHUH WKHUH DUH
OHJLWLPDWHDQGLOOHJLWLPDWHFKLOGUHQWKHIRUPHUVKDOOEHSUHIHUUHG
DERXWEODQN





/DZV

6(&7,21 %
5HWLUHPHQW %HQHILWV  D $ PHPEHU ZKR KDV
SDLGDWOHDVWRQHKXQGUHGWZHQW\PRQWKO\FRQWULEXWLRQVSULRUWRWKH
VHPHVWHU RI UHWLUHPHQW DQG ZKR  KDV UHDFKHG WKH DJH RI VL[W\ 
\HDUV DQG LV DOUHDG\ VHSDUDWHG IURP HPSOR\PHQW RU KDV FHDVHG WR EH
VHOIHPSOR\HGRUKDVUHDFKHGWKHDJHRIVL[W\ILYH\HDUVVKDOO
EH HQWLWOHG IRU DV ORQJ DV KH OLYHV WR WKH PRQWKO\ SHQVLRQ 3URYLGHG
7KDWKHVKDOOKDYHWKHRSWLRQWRUHFHLYHKLVILUVWHLJKWHHQPRQWKO\
SHQVLRQVLQOXPSVXPGLVFRXQWHGDWDSUHIHUHQWLDOUDWHRILQWHUHVWWREH
GHWHUPLQHGE\WKH666
E
$FRYHUHGPHPEHUZKRLVVL[W\\HDUVROGDWUHWLUHPHQWDQG
ZKR GRHV QRW TXDOLI\ IRU SHQVLRQ EHQHILWV XQGHU SDUDJUDSK D DERYH
VKDOO EH HQWLWOHG WR D OXPS VXP EHQHILW HTXDO WR WKH WRWDO FRQWULEXWLRQV
SDLG E\ KLP DQG RQ KLV EHKDOI 3URYLGHG 7KDW KH LV VHSDUDWHG IURP
HPSOR\PHQWDQGLVQRWFRQWLQXLQJSD\PHQWRIFRQWULEXWLRQVWRWKH666
RQKLVRZQ
F
7KH PRQWKO\ SHQVLRQ VKDOO EH VXVSHQGHG XSRQ WKH
UHHPSOR\PHQW RU UHVXPSWLRQ RI VHOIHPSOR\PHQW RI D UHWLUHG PHPEHU
ZKR LV OHVV WKDQ VL[W\ILYH  \HDUV ROG +H VKDOO DJDLQ EH VXEMHFW WR
6HFWLRQ(LJKWHHQDQGKLVHPSOR\HUWR6HFWLRQ1LQHWHHQRIWKLV$FW
G
8SRQWKHGHDWKRIWKHUHWLUHGPHPEHUKLVSULPDU\EHQHILFLDULHV
DVRIWKHGDWHRIKLVUHWLUHPHQWVKDOOEHHQWLWOHGWRUHFHLYHWKHPRQWKO\
SHQVLRQ3URYLGHG7KDWLIKHKDVQRSULPDU\EHQHILFLDULHVDQGKHGLHV
ZLWKLQ VL[W\  PRQWKV IURP WKH VWDUW RI KLV PRQWKO\ SHQVLRQ KLV
VHFRQGDU\ EHQHILFLDULHV VKDOO EH HQWLWOHG WR D OXPS VXP EHQHILW
HTXLYDOHQWWRWKHWRWDOPRQWKO\SHQVLRQVFRUUHVSRQGLQJWRWKHEDODQFHRI
WKHILYH\HDUJXDUDQWHHGSHULRGH[FOXGLQJWKHGHSHQGHQWV
SHQVLRQ
H
7KH PRQWKO\ SHQVLRQ RI D PHPEHU ZKR UHWLUHV DIWHU UHDFKLQJ
DJH VL[W\  VKDOO EH WKH KLJKHU RI HLWKHU  WKH PRQWKO\ SHQVLRQ
FRPSXWHG DW WKH HDUOLHVW WLPH KH FRXOG KDYH UHWLUHG KDG KH EHHQ
VHSDUDWHG IURP HPSOR\PHQW RU FHDVHG WR EH VHOIHPSOR\HG SOXV DOO
DGMXVWPHQWV WKHUHWR RU  WKH PRQWKO\ SHQVLRQ FRPSXWHG DW WKH WLPH
ZKHQKHDFWXDOO\UHWLUHV
6(&7,21
'HDWK%HQHILWV8SRQWKHGHDWKRIDPHPEHUZKR
KDV SDLG DW OHDVW WKLUW\VL[  PRQWKO\ FRQWULEXWLRQV SULRU WR WKH
VHPHVWHU RI GHDWK KLV SULPDU\ EHQHILFLDULHV VKDOO EH HQWLWOHG WR WKH
PRQWKO\SHQVLRQ3URYLGHG7KDWLIKHKDVQRSULPDU\EHQHILFLDULHVKLV
VHFRQGDU\ EHQHILFLDULHV VKDOO EH HQWLWOHG WR D OXPS VXP EHQHILW
HTXLYDOHQWWRWKLUW\VL[WLPHVWKHPRQWKO\SHQVLRQ,IKHKDVQRWSDLG
WKH UHTXLUHG WKLUW\VL[  PRQWKO\ FRQWULEXWLRQV KLV SULPDU\ RU
VHFRQGDU\ EHQHILFLDULHV VKDOO EH HQWLWOHG WR D OXPS VXP EHQHILW
HTXLYDOHQW WR WKH PRQWKO\ SHQVLRQ WLPHV WKH QXPEHU RI PRQWKO\
FRQWULEXWLRQVSDLGWRWKH666RUWZHOYHWLPHVWKHPRQWKO\SHQVLRQ
ZKLFKHYHULVKLJKHU
DERXWEODQN





/DZV

6(&7,21 $
3HUPDQHQW 'LVDELOLW\ %HQHILWV  D 8SRQ WKH
SHUPDQHQW WRWDO GLVDELOLW\ RI D PHPEHU ZKR KDV SDLG DW OHDVW WKLUW\VL[
PRQWKO\FRQWULEXWLRQVSULRUWRWKHVHPHVWHURIGLVDELOLW\KHVKDOOEH
HQWLWOHG WR WKH PRQWKO\ SHQVLRQ 3URYLGHG 7KDW LI KH KDV QRW SDLG WKH
UHTXLUHG WKLUW\VL[  PRQWKO\ FRQWULEXWLRQV KH VKDOO EH HQWLWOHG WR D
OXPSVXPEHQHILWHTXLYDOHQWWRWKHPRQWKO\SHQVLRQWLPHVWKHQXPEHURI
PRQWKO\FRQWULEXWLRQVSDLGWRWKH666RUWZHOYHWLPHVWKHPRQWKO\
SHQVLRQ ZKLFKHYHU LV KLJKHU $ PHPEHU ZKR  KDV UHFHLYHG D OXPS
VXP EHQHILW DQG  LV UHHPSOR\HG RU KDV UHVXPHG VHOIHPSOR\PHQW
QRWHDUOLHUWKDQRQH\HDUIURPWKHGDWHRIKLVGLVDELOLW\VKDOODJDLQEH
VXEMHFW WR FRPSXOVRU\ FRYHUDJH DQG VKDOO EH FRQVLGHUHG D QHZ
PHPEHU
E
7KH PRQWKO\ SHQVLRQ DQG GHSHQGHQWV
 SHQVLRQ VKDOO EH
VXVSHQGHG XSRQ WKH UHHPSOR\PHQW RU UHVXPSWLRQ RI VHOIHPSOR\PHQW
RU WKH UHFRYHU\ RI WKH GLVDEOHG PHPEHU IURP KLV SHUPDQHQW WRWDO
GLVDELOLW\RUKLVIDLOXUHWRSUHVHQWKLPVHOIIRUH[DPLQDWLRQDWOHDVWRQFHD
\HDUXSRQQRWLFHE\WKH666

F
8SRQ WKH GHDWK RI WKH SHUPDQHQW WRWDO GLVDELOLW\ SHQVLRQHU KLV
SULPDU\ EHQHILFLDULHV DV RI WKH GDWH RI GLVDELOLW\ VKDOO EH HQWLWOHG WR
UHFHLYH WKH PRQWKO\ SHQVLRQ 3URYLGHG 7KDW LI KH KDV QR SULPDU\
EHQHILFLDULHV DQG KH GLHV ZLWKLQ VL[W\  PRQWKV IURP WKH VWDUW RI KLV
PRQWKO\SHQVLRQKLVVHFRQGDU\EHQHILFLDULHVVKDOOEHHQWLWOHGWRDOXPS
VXP EHQHILW HTXLYDOHQW WR WKH WRWDO PRQWKO\ SHQVLRQV FRUUHVSRQGLQJ WR
WKH EDODQFH RI WKH ILYH\HDU JXDUDQWHHG SHULRG H[FOXGLQJ WKH
GHSHQGHQWV
SHQVLRQ
G

7KHIROORZLQJGLVDELOLWLHVVKDOOEHGHHPHGSHUPDQHQWWRWDO


&RPSOHWHORVVRIVLJKWRIERWKH\HV



/RVVRIWZROLPEVDWRUDERYHWKHDQNOHRUZULVWV



3HUPDQHQWFRPSOHWHSDUDO\VLVRIWZROLPEV


DQG

%UDLQ LQMXU\ UHVXOWLQJ WR LQFXUDEOH LPEHFLOLW\ RU LQVDQLW\



6XFKFDVHVDVGHWHUPLQHGDQGDSSURYHGE\WKH666

H
,I WKH GLVDELOLW\ LV SHUPDQHQW SDUWLDO DQG VXFK GLVDELOLW\ RFFXUV
EHIRUH WKLUW\VL[  PRQWKO\ FRQWULEXWLRQV KDYH EHHQ SDLG SULRU WR WKH
VHPHVWHURIGLVDELOLW\WKHEHQHILWVKDOOEHVXFKSHUFHQWDJHRIWKHOXPS
VXP EHQHILW GHVFULEHG LQ WKH SUHFHGLQJ SDUDJUDSK ZLWK GXH UHJDUG WR
WKHGHJUHHRIGLVDELOLW\DVWKH&RPPLVVLRQPD\GHWHUPLQH

DERXWEODQN

I
,I WKH GLVDELOLW\ LV SHUPDQHQW SDUWLDO DQG VXFK GLVDELOLW\ RFFXUV
DIWHU WKLUW\VL[  PRQWKO\ FRQWULEXWLRQV KDYH EHHQ SDLG SULRU WR WKH
VHPHVWHU RI GLVDELOLW\ WKH EHQHILW VKDOO EH WKH PRQWKO\ SHQVLRQ IRU





/DZV

VHPHVWHU RI GLVDELOLW\ WKH EHQHILW VKDOO EH WKH PRQWKO\ SHQVLRQ IRU
SHUPDQHQWWRWDOGLVDELOLW\SD\DEOHQRWORQJHUWKDQWKHSHULRGGHVLJQDWHG
LQWKHIROORZLQJVFKHGXOH
&203/(7($1'3(50$1(17
/2662)86(2)

2QHWKXPE
2QHLQGH[ILQJHU
2QHPLGGOHILQJHU
2QHULQJILQJHU
2QHOLWWOHILQJHU
2QHELJWRH
2QHKDQG
2QHDUP
2QHIRRW
2QHOHJ
2QHHDU
%RWKHDUV
+HDULQJRIRQHHDU
+HDULQJRIERWKHDUV
6LJKWRIRQHH\H

180%(52)
0217+6

















J
7KH SHUFHQWDJH GHJUHH RI GLVDELOLW\ ZKLFK LV HTXLYDOHQW WR WKH
UDWLRWKDWWKHGHVLJQDWHGQXPEHURIPRQWKVRIFRPSHQVDELOLW\EHDUVWR
VHYHQW\ILYH  URXQGHG WR WKH QH[W KLJKHU LQWHJHU VKDOO QRW EH
DGGLWLYH IRU GLVWLQFW VHSDUDWH DQG XQUHODWHG SHUPDQHQW SDUWLDO
GLVDELOLWLHVEXWVKDOOEHDGGLWLYHIRUGHWHULRUDWLQJDQGUHODWHGSHUPDQHQW
SDUWLDO GLVDELOLWLHV WR D PD[LPXP RI RQH KXQGUHG SHUFHQW  LQ
ZKLFK FDVH WKH PHPEHU VKDOO EH GHHPHG DV SHUPDQHQWO\ WRWDOO\
GLVDEOHG
K
,Q FDVH RI SHUPDQHQW SDUWLDO GLVDELOLW\ WKH PRQWKO\ SHQVLRQ
EHQHILW VKDOO EH JLYHQ LQ OXPS VXP LI LW LV SD\DEOH IRU OHVV WKDQ WZHOYH
PRQWKV
L
)RUWKHSXUSRVHRIDGMXGLFDWLQJUHWLUHPHQWGHDWKDQGSHUPDQHQW
WRWDOGLVDELOLW\SHQVLRQEHQHILWVFRQWULEXWLRQVVKDOOEHGHHPHGSDLGIRU
WKHPRQWKVGXULQJZKLFKWKHPHPEHUUHFHLYHGSDUWLDOGLVDELOLW\SHQVLRQ
3URYLGHG7KDWVXFKFRQWULEXWLRQVVKDOOEHEDVHGRQKLVODVWFRQWULEXWLRQ
SULRUWRKLVGLVDELOLW\
M
6KRXOGDPHPEHUZKRLVRQSDUWLDOGLVDELOLW\SHQVLRQUHWLUHRUGLH
KLVGLVDELOLW\SHQVLRQVKDOOFHDVHXSRQKLVUHWLUHPHQWRUGHDWK
6(&7,21 %
)XQHUDO %HQHILW  $ IXQHUDO JUDQW HTXLYDOHQW WR
7ZHOYHWKRXVDQGSHVRV3VKDOOEHSDLGLQFDVKRULQNLQGWR
KHOSGHIUD\WKHFRVWRIIXQHUDOH[SHQVHVXSRQWKHGHDWKRIDPHPEHU
LQFOXGLQJSHUPDQHQWO\WRWDOO\GLVDEOHGPHPEHURUUHWLUHH

DERXWEODQN

6(&7,21
6LFNQHVV%HQHILW  D $ PHPEHU ZKR KDV SDLG DW
OHDVW WKUHH  PRQWKO\ FRQWULEXWLRQV LQ WKH WZHOYHPRQWK SHULRG
LPPHGLDWHO\ SUHFHGLQJ WKH VHPHVWHU RI VLFNQHVV RU LQMXU\ DQG LV
FRQILQHGWKHUHIRUIRUPRUHWKDQWKUHHGD\VLQDKRVSLWDORUHOVHZKHUH
ZLWK WKH DSSURYDO RI WKH 666 VKDOO IRU HDFK GD\ RI FRPSHQVDEOH





/DZV

ZLWK WKH DSSURYDO RI WKH 666 VKDOO IRU HDFK GD\ RI FRPSHQVDEOH
FRQILQHPHQWRUIUDFWLRQWKHUHRIEHSDLGE\KLVHPSOR\HURUWKH666LI
VXFK SHUVRQ LV XQHPSOR\HG RU VHOIHPSOR\HG D GDLO\ VLFNQHVV EHQHILW
HTXLYDOHQW WR QLQHW\ SHUFHQW  RI KLV DYHUDJH GDLO\ VDODU\ FUHGLW
VXEMHFWWRWKHIROORZLQJFRQGLWLRQV

,Q QR FDVH VKDOO WKH GDLO\ VLFNQHVV EHQHILW EH SDLG
ORQJHUWKDQRQHKXQGUHGWZHQW\GD\VLQRQHFDOHQGDU
\HDUQRUVKDOODQ\XQXVHGSRUWLRQRIWKHRQHKXQGUHGWZHQW\
 GD\V RI VLFNQHVV EHQHILW JUDQWHG XQGHU WKLV VHFWLRQ EH
FDUULHGIRUZDUGDQGDGGHGWRWKHWRWDOQXPEHURIFRPSHQVDEOH
GD\VDOORZDEOHLQWKHVXEVHTXHQW\HDU

7KH GDLO\ VLFNQHVV EHQHILW VKDOO QRW EH SDLG IRU PRUH
WKDQ WZR KXQGUHG IRUW\  GD\V RQ DFFRXQW RI WKH VDPH
FRQILQHPHQWDQG

7KHHPSOR\HHPHPEHUVKDOOQRWLI\KLVHPSOR\HURIWKH
IDFWRIKLVVLFNQHVVRULQMXU\ZLWKLQILYHFDOHQGDUGD\VDIWHU
WKH VWDUW RI KLV FRQILQHPHQW XQOHVV VXFK FRQILQHPHQW LV LQ D
KRVSLWDO RU WKH HPSOR\HH EHFDPH VLFN RU ZDV LQMXUHG ZKLOH
ZRUNLQJRUZLWKLQWKHSUHPLVHVRIWKHHPSOR\HULQZKLFKFDVH
QRWLILFDWLRQWRWKHHPSOR\HULVQRWQHFHVVDU\3URYLGHG7KDWLI
WKHPHPEHULVXQHPSOR\HGRUVHOIHPSOR\HGKHVKDOOGLUHFWO\
QRWLI\WKH666RIKLVFRQILQHPHQWZLWKLQILYHFDOHQGDUGD\V
DIWHUWKHVWDUWWKHUHRIXQOHVVVXFKFRQILQHPHQWLVLQDKRVSLWDO
LQ ZKLFK FDVH QRWLILFDWLRQ LV DOVR QRW QHFHVVDU\ 3URYLGHG
IXUWKHU 7KDW LQ FDVHV ZKHUH QRWLILFDWLRQ LV QHFHVVDU\ WKH
FRQILQHPHQWVKDOOEHGHHPHGWRKDYHVWDUWHGQRWHDUOLHUWKDQ
WKHILIWKGD\LPPHGLDWHO\SUHFHGLQJWKHGDWHRIQRWLILFDWLRQ

E
7KH FRPSHQVDEOH FRQILQHPHQW VKDOO EHJLQ RQ WKH ILUVW GD\ RI
VLFNQHVVDQGWKHSD\PHQWRIVXFKDOORZDQFHVVKDOOEHSURPSWO\PDGH
E\WKHHPSOR\HUHYHU\UHJXODUSD\GD\RURQWKHILIWHHQWKDQGODVWGD\RI
HDFKPRQWKDQGVLPLODUO\LQWKHFDVHRIGLUHFWSD\PHQWE\WKH666IRU
DVORQJDVVXFKDOORZDQFHVDUHGXHDQGSD\DEOH3URYLGHG7KDWVXFK
DOORZDQFHVKDOOEHJLQRQO\DIWHUDOOVLFNOHDYHVRIDEVHQFHZLWKIXOOSD\
WRWKHFUHGLWRIWKHHPSOR\HHPHPEHUVKDOOKDYHEHHQH[KDXVWHG
F
2QH KXQGUHG  RI WKH GDLO\ EHQHILWV SURYLGHG LQ WKH
SUHFHGLQJSDUDJUDSKVKDOOEHUHLPEXUVHGE\WKH666WRVDLGHPSOR\HU
XSRQUHFHLSWRIVDWLVIDFWRU\SURRIRIVXFKSD\PHQWDQGOHJDOLW\WKHUHRI
3URYLGHG 7KDW WKH HPSOR\HU KDV QRWLILHG WKH 666 RI WKH FRQILQHPHQW
ZLWKLQ ILYH  FDOHQGDU GD\V DIWHU UHFHLSW RI WKH QRWLILFDWLRQ IURP WKH
HPSOR\HHPHPEHU3URYLGHGIXUWKHU7KDWLIWKHQRWLILFDWLRQWRWKH666
LVPDGHE\WKHHPSOR\HUEH\RQGILYHFDOHQGDUGD\VDIWHUUHFHLSWRI
WKH QRWLILFDWLRQ IURP WKH HPSOR\HH PHPEHU VDLG HPSOR\HU VKDOO EH
UHLPEXUVHG RQO\ IRU HDFK GD\ RI FRQILQHPHQW VWDUWLQJ IURP WKH WHQWK
FDOHQGDUGD\LPPHGLDWHO\SUHFHGLQJWKHGDWHRIQRWLILFDWLRQWRWKH666
DERXWEODQN





/DZV

FDOHQGDUGD\LPPHGLDWHO\SUHFHGLQJWKHGDWHRIQRWLILFDWLRQWRWKH666
3URYLGHGILQDOO\7KDWWKH666VKDOOUHLPEXUVHWKHHPSOR\HURUSD\WKH
XQHPSOR\HG PHPEHU RQO\ IRU FRQILQHPHQW ZLWKLQ WKH RQH\HDU SHULRG
LPPHGLDWHO\SUHFHGLQJWKHGDWHWKHFODLPIRUEHQHILWRUUHLPEXUVHPHQW
LVUHFHLYHGE\WKH666H[FHSWFRQILQHPHQWLQDKRVSLWDOLQZKLFKFDVH
WKHFODLPIRUEHQHILWRUUHLPEXUVHPHQWPXVWEHILOHGZLWKLQRQH\HDU
IURPWKHODVWGD\RIFRQILQHPHQW
G
:KHUHWKHHPSOR\HHPHPEHUKDVJLYHQWKHUHTXLUHGQRWLILFDWLRQ
EXWWKHHPSOR\HUIDLOVWRQRWLI\WKH666RIWKHFRQILQHPHQWRUWRILOHWKH
FODLP IRU UHLPEXUVHPHQW ZLWKLQ WKH SHULRG SUHVFULEHG LQ WKLV VHFWLRQ
UHVXOWLQJ LQ WKH UHGXFWLRQ RI WKH EHQHILW RU GHQLDO RI WKH FODLP VXFK
HPSOR\HU VKDOO KDYH QR ULJKW WR UHFRYHU WKH FRUUHVSRQGLQJ GDLO\
DOORZDQFH KH DGYDQFHG WR WKH HPSOR\HH PHPEHU DV UHTXLUHG LQ WKLV
6HFWLRQ
H
7KH FODLP RI UHLPEXUVHPHQW VKDOO EH DGMXGLFDWHG E\ WKH 666
ZLWKLQ D SHULRG RI WZR  PRQWKV IURP UHFHLSW WKHUHRI 3URYLGHG 7KDW
VKRXOG QR SD\PHQW EH UHFHLYHG E\ WKH HPSOR\HU ZLWKLQ RQH  PRQWK
DIWHU WKH SHULRG SUHVFULEHG KHUHLQ IRU DGMXGLFDWLRQ WKH UHLPEXUVHPHQW
VKDOOWKHUHDIWHUHDUQVLPSOHLQWHUHVWRIRQHSHUFHQWSHUPRQWKXQWLO
SDLG
I
7KHSURYLVLRQVUHJDUGLQJWKHQRWLILFDWLRQUHTXLUHGRIWKHPHPEHU
DQGWKHHPSOR\HUDVZHOODVWKHSHULRGZLWKLQZKLFKWKHFODLPIRUEHQHILW
RU UHLPEXUVHPHQW PD\ EH ILOHG VKDOO DSSO\ WR DOO FODLPV ILOHG ZLWK WKH
666
6(&7,21$
0DWHUQLW\/HDYH%HQHILW$IHPDOHPHPEHUZKR
KDV SDLG DW OHDVW WKUHH  PRQWKO\ FRQWULEXWLRQV LQ WKH WZHOYHPRQWK
SHULRG LPPHGLDWHO\ SUHFHGLQJ WKH VHPHVWHU RI KHU FKLOGELUWK RU
PLVFDUULDJH VKDOO EH SDLG D GDLO\ PDWHUQLW\ EHQHILW HTXLYDOHQW WR RQH
KXQGUHGSHUFHQWRIKHUDYHUDJHGDLO\VDODU\FUHGLWIRUVL[W\
GD\VRUVHYHQW\HLJKWGD\VLQFDVHRIFDHVDUHDQGHOLYHU\VXEMHFW
WRWKHIROORZLQJFRQGLWLRQV
D
7KDW WKH HPSOR\HH VKDOO KDYH QRWLILHG KHU HPSOR\HU RI KHU
SUHJQDQF\DQGWKHSUREDEOHGDWHRIKHUFKLOGELUWKZKLFKQRWLFHVKDOOEH
WUDQVPLWWHG WR WKH 666 LQ DFFRUGDQFH ZLWK WKH UXOHV DQG UHJXODWLRQV LW
PD\SURYLGH
E
7KHIXOOSD\PHQWVKDOOEHDGYDQFHGE\WKHHPSOR\HUZLWKLQWKLUW\
GD\VIURPWKHILOLQJRIWKHPDWHUQLW\OHDYHDSSOLFDWLRQ
F
7KDW SD\PHQW RI GDLO\ PDWHUQLW\ EHQHILWV VKDOO EH D EDU WR WKH
UHFRYHU\ RI VLFNQHVV EHQHILWV SURYLGHG E\ WKLV $FW IRU WKH VDPH SHULRG
IRUZKLFKGDLO\PDWHUQLW\EHQHILWVKDYHEHHQUHFHLYHG
G
7KDWWKHPDWHUQLW\EHQHILWVSURYLGHGXQGHUWKLVVHFWLRQVKDOOEH
SDLGRQO\IRUWKHILUVWIRXUGHOLYHULHVRUPLVFDUULDJHV

DERXWEODQN

H

7KDWWKH666VKDOOLPPHGLDWHO\UHLPEXUVHWKHHPSOR\HURIRQH





/DZV

H
7KDWWKH666VKDOOLPPHGLDWHO\UHLPEXUVHWKHHPSOR\HURIRQH
KXQGUHGSHUFHQWRIWKHDPRXQWRIPDWHUQLW\EHQHILWVDGYDQFHG
WR WKH HPSOR\HH E\ WKH HPSOR\HU XSRQ UHFHLSW RI VDWLVIDFWRU\ SURRI RI
VXFKSD\PHQWDQGOHJDOLW\WKHUHRIDQG
I
7KDW LI DQ HPSOR\HH PHPEHU VKRXOG JLYH ELUWK RU VXIIHU
PLVFDUULDJHZLWKRXWWKHUHTXLUHGFRQWULEXWLRQVKDYLQJEHHQUHPLWWHGIRU
KHU E\ KHU HPSOR\HU WR WKH 666 RU ZLWKRXW WKH ODWWHU KDYLQJ EHHQ
SUHYLRXVO\ QRWLILHG E\ WKH HPSOR\HU RI WKH WLPH RI WKH SUHJQDQF\ WKH
HPSOR\HU VKDOO SD\ WR WKH 666 GDPDJHV HTXLYDOHQW WR WKH EHQHILWV
ZKLFKVDLGHPSOR\HHPHPEHUZRXOGRWKHUZLVHKDYHEHHQHQWLWOHGWR
6(&7,21 
1RQWUDQVIHUDELOLW\ RI %HQHILWV  7KH 666 VKDOO
SURPSWO\ SD\ WKH EHQHILWV SURYLGHG IRU LQ WKLV $FW WR VXFK SHUVRQV DV
PD\ EH HQWLWOHG WKHUHWR LQ DFFRUGDQFH ZLWK WKH SURYLVLRQV RI WKLV $FW
3URYLGHG7KDWWKH666VKDOOSD\WKHUHWLUHPHQWEHQHILWVRQWKHGD\RI
FRQWLQJHQF\ WR TXDOLILHG PHPEHUV ZKR KDYH VXEPLWWHG WKH QHFHVVDU\
GRFXPHQWV DW OHDVW VL[  PRQWKV EHIRUH 3URYLGHG IXUWKHU 7KDW WKH
EHQHILFLDU\ZKRLVDQDWLRQDORIDIRUHLJQFRXQWU\ZKLFKGRHVQRWH[WHQG
EHQHILWVWRD)LOLSLQREHQHILFLDU\UHVLGLQJLQWKH3KLOLSSLQHVRUZKLFKLV
QRW UHFRJQL]HG E\ WKH 3KLOLSSLQHV VKDOO QRW EH HQWLWOHG WR UHFHLYH DQ\
EHQHILW XQGHU WKLV $FW 3URYLGHG IXUWKHU 7KDW QRWZLWKVWDQGLQJ WKH
IRUHJRLQJ ZKHUH WKH EHVW LQWHUHVW RI WKH 666 ZLOO EH VHUYHG WKH
&RPPLVVLRQ PD\ GLUHFW SD\PHQWV ZLWKRXW UHJDUG WR QDWLRQDOLW\ RU
FRXQWU\RIUHVLGHQFH3URYLGHGIXUWKHU7KDWLIWKHUHFLSLHQWLVDPLQRURU
D SHUVRQ LQFDSDEOH RI DGPLQLVWHULQJ KLV RZQ DIIDLUV WKH &RPPLVVLRQ
VKDOO DSSRLQW D UHSUHVHQWDWLYH XQGHU VXFK WHUPV DQG FRQGLWLRQV DV LW
PD\GHHPSURSHU3URYLGHGIXUWKHU7KDWVXFKDSSRLQWPHQWVKDOOQRWEH
QHFHVVDU\LQFDVHWKHUHFLSLHQWLVXQGHUWKHFXVWRG\RIRUOLYLQJZLWKWKH
SDUHQWV RU VSRXVH RI WKH PHPEHU LQ ZKLFK FDVH WKH EHQHILWV VKDOO EH
SDLG WR VXFK SDUHQWV RU VSRXVH DV UHSUHVHQWDWLYH SD\HH RI WKH
UHFLSLHQW6XFKEHQHILWVDUHQRWWUDQVIHUDEOHDQGQRSRZHURIDWWRUQH\RU
RWKHU GRFXPHQW H[HFXWHG E\ WKRVH HQWLWOHG WKHUHWR LQ IDYRU RI DQ\
DJHQW DWWRUQH\ RU DQ\ RWKHU SHUVRQ IRU WKH FROOHFWLRQ WKHUHRI RQ WKHLU
EHKDOI VKDOO EH UHFRJQL]HG H[FHSW ZKHQ WKH\ DUH SK\VLFDOO\ XQDEOH WR
FROOHFWSHUVRQDOO\VXFKEHQHILWV3URYLGHGIXUWKHU7KDWLQFDVHRIGHDWK
EHQHILWVLIQREHQHILFLDU\TXDOLILHVXQGHUWKLV$FWVDLGEHQHILWVVKDOOEH
SDLGWRWKHOHJDOKHLUVLQDFFRUGDQFHZLWKWKHODZRIVXFFHVVLRQ

6(&7,21
([HPSWLRQIURP7D[/HJDO3URFHVVDQG/LHQ  $OO
ODZV WR WKH FRQWUDU\ QRWZLWKVWDQGLQJ WKH 666 DQG DOO LWV DVVHWV DQG
SURSHUWLHV DOO FRQWULEXWLRQV FROOHFWHG DQG DOO DFFUXDOV WKHUHWR DQG
LQFRPH RU LQYHVWPHQW HDUQLQJV WKHUHIURP DV ZHOO DV DOO VXSSOLHV
HTXLSPHQW SDSHUV RU GRFXPHQWV VKDOO EH H[HPSW IURP DQ\ WD[
DVVHVVPHQW IHH FKDUJH RU FXVWRPV RU LPSRUW GXW\ DQG DOO EHQHILW
SD\PHQWVPDGHE\WKH666VKDOOOLNHZLVHEHH[HPSWIURPDOONLQGVRI
DERXWEODQN





/DZV
SD\PHQWVPDGHE\WKH666VKDOOOLNHZLVHEHH[HPSWIURPDOONLQGVRI
WD[HV IHHV RU FKDUJHV DQG VKDOO QRW EH OLDEOH WR DWWDFKPHQWV
JDUQLVKPHQWVOHY\RUVHL]XUHE\RUXQGHUDQ\OHJDORUHTXLWDEOHSURFHVV
ZKDWVRHYHU HLWKHU EHIRUH RU DIWHU UHFHLSW E\ WKH SHUVRQ RU SHUVRQV
HQWLWOHGWKHUHWRH[FHSWWRSD\DQ\GHEWRIWKHPHPEHUWRWKH6661R
WD[PHDVXUHRIZKDWHYHUQDWXUHHQDFWHGVKDOODSSO\WRWKH666XQOHVV
LWH[SUHVVO\UHYRNHVWKHGHFODUHGSROLF\RIWKH6WDWHLQ6HFWLRQKHUHRI
JUDQWLQJ WD[H[HPSWLRQ WR WKH 666 $Q\ WD[ DVVHVVPHQW LPSRVHG
DJDLQVWWKH666VKDOOEHQXOODQGYRLG
FG

6(&7,21
)HHRI$JHQWV$WWRUQH\VHWF1RDJHQWDWWRUQH\
RURWKHUSHUVRQLQFKDUJHRIWKHSUHSDUDWLRQILOLQJRUSXUVXLQJDQ\FODLP
IRU EHQHILW XQGHU WKLV $FW VKDOO GHPDQG RU FKDUJH IRU KLV VHUYLFHV DQ\
IHH DQG DQ\ VWLSXODWLRQ WR WKH FRQWUDU\ VKDOO EH QXOO DQG YRLG 7KH
UHWHQWLRQ RU GHGXFWLRQ RI DQ\ DPRXQW IURP DQ\ EHQHILW JUDQWHG XQGHU
WKLV $FW IRU WKH SD\PHQW RI IHHV IRU VXFK VHUYLFHV LV SURKLELWHG
3URYLGHGKRZHYHU7KDWDQ\PHPEHURIWKH3KLOLSSLQH%DUZKRDSSHDUV
DV FRXQVHO LQ DQ\ FDVH KHDUG E\ WKH &RPPLVVLRQ VKDOO EH HQWLWOHG WR
DWWRUQH\
VIHHVQRWH[FHHGLQJWHQSHUFHQWRIWKHEHQHILWVDZDUGHG
E\ WKH &RPPLVVLRQ ZKLFK IHHV VKDOO QRW EH SD\DEOH EHIRUH WKH DFWXDO
SD\PHQWRIWKHEHQHILWVDQGDQ\VWLSXODWLRQWRWKHFRQWUDU\VKDOOEHQXOO
DQGYRLG
$Q\ YLRODWLRQ RI WKH SURYLVLRQV RI WKLV 6HFWLRQ VKDOO EH SXQLVKHG E\ D
ILQH RI QRW OHVV WKDQ ILYH KXQGUHG SHVRV 3 QRU PRUH WKDQ ILYH
WKRXVDQG SHVRV 3 RU LPSULVRQPHQW IRU QRW OHVV WKDQ VL[ 
PRQWKV QRU PRUH WKDQ RQH  \HDU RU ERWK DW WKH GLVFUHWLRQ RI WKH
FRXUW
6(&7,21 
(PSOR\HH
V &RQWULEXWLRQ  D %HJLQQLQJ DV RI WKH
ODVW GD\ RI WKH FDOHQGDU PRQWK ZKHQ DQ HPSOR\HH
V FRPSXOVRU\
FRYHUDJH WDNHV HIIHFW DQG HYHU\ PRQWK WKHUHDIWHU GXULQJ KLV
HPSOR\PHQW WKH HPSOR\HU VKDOO GHGXFW DQG ZLWKKROG IURP VXFK
HPSOR\HH
V PRQWKO\ VDODU\ ZDJH FRPSHQVDWLRQ RU HDUQLQJV WKH
HPSOR\HH
V FRQWULEXWLRQ LQ DQ DPRXQW FRUUHVSRQGLQJ WR KLV VDODU\
ZDJH FRPSHQVDWLRQ RU HDUQLQJV GXULQJ WKH PRQWK LQ DFFRUGDQFH ZLWK
WKHIROORZLQJVFKHGXOH
6$/$5<
%5$&.(7

5$1*(
2)

&203(16$7,21
,
,,

DERXWEODQN

0217+/<

0217+/<&2175,%87,21

6$/$5<
&5(',7







(03/2<(5



(03/2<((




727$/




,,,











,9














/DZV

9
9,
9,,
9,,,
,;
;
;,
;,,














































;,,,











;,9











;9



;9,



;9,,

29(5

















7KH IRUHJRLQJ VFKHGXOH RI FRQWULEXWLRQ VKDOO DOVR DSSO\ WR VHOI
HPSOR\HGDQGYROXQWDU\PHPEHUV
7KH PD[LPXP PRQWKO\ VDODU\ FUHGLW VKDOO EH 1LQH WKRXVDQG SHVRV
3HIIHFWLYH-DQXDU\1LQHWHHQKXQGUHGDQGQLQHW\VL[
3URYLGHG 7KDW LW VKDOO EH LQFUHDVHG E\ 2QH WKRXVDQG SHVRV
3 HYHU\ \HDU WKHUHDIWHU XQWLO LW VKDOO KDYH UHDFKHG 7ZHOYH
WKRXVDQG SHVRV 3 E\ 1LQHWHHQ KXQGUHG DQG QLQHW\ QLQH
 3URYLGHG IXUWKHU 7KDW WKH PLQLPXP DQG PD[LPXP PRQWKO\
VDODU\FUHGLWVDVZHOODVWKHUDWHRIFRQWULEXWLRQVPD\EHIL[HGIURPWLPH
WR WLPH E\ WKH &RPPLVVLRQ WKURXJK UXOHV DQG UHJXODWLRQV WDNLQJ LQWR
FRQVLGHUDWLRQ DFWXDULDO FDOFXODWLRQV DQG UDWH RI EHQHILWV VXEMHFW WR WKH
DSSURYDORIWKH3UHVLGHQWRIWKH3KLOLSSLQHV
6(&7,21
(PSOR\HU
V&RQWULEXWLRQVD%HJLQQLQJDVRIWKH
ODVWGD\RIWKHPRQWKZKHQDQHPSOR\HH
VFRPSXOVRU\FRYHUDJHWDNHV
HIIHFWDQGHYHU\PRQWKWKHUHDIWHUGXULQJKLVHPSOR\PHQWKLVHPSOR\HU
VKDOO SD\ ZLWK UHVSHFW WR VXFK FRYHUHG HPSOR\HH WKH HPSOR\HU
V
FRQWULEXWLRQ LQ DFFRUGDQFH ZLWK WKH VFKHGXOH LQGLFDWHG LQ 6HFWLRQ
(LJKWHHQ RI WKLV $FW 1RWZLWKVWDQGLQJ DQ\ FRQWUDFW WR WKH FRQWUDU\ DQ
HPSOR\HUVKDOOQRWGHGXFWGLUHFWO\RULQGLUHFWO\IURPWKHFRPSHQVDWLRQ
RI KLV HPSOR\HHV FRYHUHG E\ WKH 666 RU RWKHUZLVH UHFRYHU IURP WKHP
WKHHPSOR\HU
VFRQWULEXWLRQVZLWKUHVSHFWWRVXFKHPSOR\HHV
E
7KH UHPLWWDQFH RI VXFK FRQWULEXWLRQV E\ WKH HPSOR\HU VKDOO EH
VXSSRUWHGE\DTXDUWHUO\FROOHFWLRQOLVWWREHVXEPLWWHGWRWKH666DWWKH
HQG RI HDFK FDOHQGDU TXDUWHU LQGLFDWLQJ WKH FRUUHFW ,' QXPEHU RI WKH
HPSOR\HUWKHFRUUHFWQDPHVDQG666QXPEHUVRIWKHHPSOR\HHVDQG
DERXWEODQN





/DZV

HPSOR\HUWKHFRUUHFWQDPHVDQG666QXPEHUVRIWKHHPSOR\HHVDQG
WKHWRWDOFRQWULEXWLRQVSDLGIRUWKHLUDFFRXQWGXULQJWKHTXDUWHU
6(&7,21$
&RQWULEXWLRQRIWKH6HOIHPSOR\HG0HPEHU7KH
FRQWULEXWLRQV WR WKH 666 RI WKH VHOIHPSOR\HG PHPEHU VKDOO EH
GHWHUPLQHG LQ DFFRUGDQFH ZLWK 6HFWLRQ (LJKWHHQ RI WKLV $FW 3URYLGHG
7KDWWKHPRQWKO\HDUQLQJVGHFODUHGE\WKHVHOIHPSOR\HGPHPEHUDWWKH
WLPHRIKLVUHJLVWUDWLRQZLWKWKH666VKDOOEHFRQVLGHUHGDVKLVPRQWKO\
FRPSHQVDWLRQ DQG KH VKDOO SD\ ERWK WKH HPSOR\HU DQG HPSOR\HH
FRQWULEXWLRQV3URYLGHGIXUWKHU7KDWWKHFRQWULEXWLRQVRIVHOIHPSOR\HG
SHUVRQV HDUQLQJ 2QH WKRXVDQG SHVRV 3 PRQWKO\ RU EHORZ
PD\EHUHGXFHGE\WKH&RPPLVVLRQ
7KH PRQWKO\ HDUQLQJV GHFODUHG E\ WKH VHOIHPSOR\HG PHPEHU DW WKH
WLPH RI KLV UHJLVWUDWLRQ VKDOO UHPDLQ WKH EDVLV RI KLV PRQWKO\ VDODU\
FUHGLWXQOHVVKHPDNHVDQRWKHUGHFODUDWLRQRIKLVPRQWKO\HDUQLQJVLQ
ZKLFK FDVH VXFK ODWHVW GHFODUDWLRQ EHFRPHV WKH QHZ EDVLV RI KLV
PRQWKO\VDODU\FUHGLW
6(&7,21 
*RYHUQPHQW &RQWULEXWLRQ  $V WKH FRQWULEXWLRQ RI
WKH *RYHUQPHQW WR WKH RSHUDWLRQ RI WKH 666 &RQJUHVV VKDOO DQQXDOO\
DSSURSULDWH RXW RI DQ\ IXQGV LQ WKH 1DWLRQDO 7UHDVXU\ QRW RWKHUZLVH
DSSURSULDWHG WKH QHFHVVDU\ VXP RU VXPV WR PHHW WKH HVWLPDWHG
H[SHQVHV RI WKH 666 IRU HDFK HQVXLQJ \HDU ,Q DGGLWLRQ WR WKLV
FRQWULEXWLRQ&RQJUHVVVKDOODSSURSULDWHIURPWLPHWRWLPHVXFKVXPRU
VXPV DV PD\ EH QHHGHG WR DVVXUH WKH PDLQWHQDQFH RI DQ DGHTXDWH
ZRUNLQJ EDODQFH RI WKH IXQGV RI WKH 666 DV GLVFORVHG E\ VXLWDEOH
SHULRGLFDFWXDULDOVWXGLHVEHPDGHRIWKHRSHUDWLRQVRIWKH666
6(&7,21 
*RYHUQPHQW *XDUDQWHH  7KH EHQHILWV SUHVFULEHG
LQ WKLV $FW VKDOO QRW EH GLPLQLVKHG DQG WR JXDUDQWHH VDLG EHQHILWV WKH
*RYHUQPHQW RI WKH 5HSXEOLF RI WKH 3KLOLSSLQHV DFFHSWV JHQHUDO
UHVSRQVLELOLW\IRUWKHVROYHQF\RIWKH666
6(&7,21 
5HPLWWDQFH RI &RQWULEXWLRQV  D 7KH FRQWULEXWLRQ
LPSRVHGLQWKHSUHFHGLQJVHFWLRQVKDOOEHUHPLWWHGWRWKH666ZLWKLQWKH
ILUVWWHQGD\VRIHDFKFDOHQGDUPRQWKIROORZLQJWKHPRQWKIRUZKLFK
WKH\ DUH DSSOLFDEOH RU ZLWKLQ VXFK WLPH DV WKH &RPPLVVLRQ PD\
SUHVFULEH (YHU\ HPSOR\HU UHTXLUHG WR GHGXFW DQG WR UHPLW VXFK
FRQWULEXWLRQVVKDOOEHOLDEOHIRUWKHLUSD\PHQWDQGLIDQ\FRQWULEXWLRQLV
QRW SDLG WR WKH 666 DV KHUHLQ SUHVFULEHG KH VKDOO SD\ EHVLGHV WKH
FRQWULEXWLRQDSHQDOW\WKHUHRQRIWKUHHSHUFHQWSHUPRQWKIURPWKH
GDWH WKH FRQWULEXWLRQ IDOOV GXH XQWLO SDLG ,I GHHPHG H[SHGLHQW DQG
DGYLVDEOH E\ WKH &RPPLVVLRQ WKH FROOHFWLRQ DQG UHPLWWDQFH RI
FRQWULEXWLRQVVKDOOEHPDGHTXDUWHUO\RUVHPLDQQXDOO\LQDGYDQFHWKH
FRQWULEXWLRQV SD\DEOH E\ WKH HPSOR\HHV WR EH DGYDQFHG E\ WKHLU
UHVSHFWLYHHPSOR\HUV3URYLGHG7KDWXSRQVHSDUDWLRQRIDQHPSOR\HH
DQ\ FRQWULEXWLRQ VR SDLG LQ DGYDQFH EXW QRW GXH VKDOO EH FUHGLWHG RU
UHIXQGHGWRKLVHPSOR\HU

DERXWEODQN





/DZV

E
7KH FRQWULEXWLRQV SD\DEOH XQGHU WKLV $FW LQ FDVHV ZKHUH DQ
HPSOR\HUUHIXVHVRUQHJOHFWVWRSD\WKHVDPHVKDOOEHFROOHFWHGE\WKH
666 LQ WKH VDPH PDQQHU DV WD[HV DUH PDGH FROOHFWLEOH XQGHU WKH
1DWLRQDO,QWHUQDO5HYHQXH&RGHDVDPHQGHG)DLOXUHRUUHIXVDORIWKH
HPSOR\HU WR SD\ RU UHPLW WKH FRQWULEXWLRQV KHUHLQ SUHVFULEHG VKDOO QRW
SUHMXGLFH WKH ULJKW RI WKH FRYHUHG HPSOR\HH WR WKH EHQHILWV RI WKH
FRYHUDJH
7KHULJKWWRLQVWLWXWHWKHQHFHVVDU\DFWLRQDJDLQVWWKHHPSOR\HUPD\EH
FRPPHQFHG ZLWKLQ WZHQW\  \HDUV IURP WKH WLPH WKH GHOLQTXHQF\ LV
NQRZQ RU WKH DVVHVVPHQW LV PDGH E\ WKH 666 RU IURP WKH WLPH WKH
EHQHILWDFFUXHVDVWKHFDVHPD\EH
F
6KRXOGDQ\SHUVRQQDWXUDORUMXULGLFDOGHIDXOWVLQDQ\SD\PHQW
RIFRQWULEXWLRQVWKH&RPPLVVLRQPD\DOVRFROOHFWWKHVDPHLQHLWKHURI
WKHIROORZLQJZD\V

%\ DQ DFWLRQ LQ FRXUW ZKLFK VKDOO KHDU DQG GLVSRVH RI
WKHFDVHLQSUHIHUHQFHWRDQ\RWKHUFLYLODFWLRQRU

%\ LVVXLQJ D ZDUUDQW WR WKH 6KHULII RI DQ\ SURYLQFH RU
FLW\ FRPPDQGLQJ KLP WR OHY\ XSRQ DQG VHOO DQ\ UHDO DQG
SHUVRQDOSURSHUW\RIWKHGHEWRU7KH6KHULII
VVDOHE\YLUWXHRI
VDLG ZDUUDQW VKDOO EH JRYHUQHG E\ WKH VDPH SURFHGXUH
SUHVFULEHGIRUH[HFXWLRQVDJDLQVWSURSHUW\XSRQMXGJPHQWVE\
DFRXUWRIUHFRUG

G
7KH ODVW FRPSOHWH UHFRUG RI PRQWKO\ FRQWULEXWLRQV SDLG E\ WKH
HPSOR\HU RU WKH DYHUDJH RI WKH PRQWKO\ FRQWULEXWLRQV SDLG GXULQJ WKH
SDVW WKUHH  \HDUV DV RI WKH GDWH RI ILOLQJ RI WKH DFWLRQ IRU FROOHFWLRQ
VKDOOEHSUHVXPHGWREHWKHPRQWKO\FRQWULEXWLRQVSD\DEOHE\DQGGXH
IURP WKH HPSOR\HU WR WKH 666 IRU HDFK RI WKH XQSDLG PRQWK XQOHVV
FRQWUDGLFWHGDQGRYHUFRPHE\RWKHUHYLGHQFH3URYLGHG7KDWWKH666
VKDOOQRWEHEDUUHGIURPGHWHUPLQLQJDQGFROOHFWLQJDQGWUXHDQGFRUUHFW
FRQWULEXWLRQV GXH WKH 666 HYHQ DIWHU IXOO SD\PHQW SXUVXDQW WR WKLV
SDUDJUDSK QRU VKDOO WKH HPSOR\HU EH UHOLHYHG RI KLV OLDELOLW\ XQGHU
6HFWLRQ7ZHQW\HLJKWRIWKLV$FW
6(&7,21 $
5HPLWWDQFH RI &RQWULEXWLRQV RI 6HOIHPSOR\HG
PHPEHU  6HOIHPSOR\HG PHPEHUV VKDOO UHPLW WKHLU PRQWKO\
FRQWULEXWLRQVTXDUWHUO\RQVXFKGDWHVDQGVFKHGXOHVDVWKH&RPPLVVLRQ
PD\VSHFLI\WKURXJKUXOHVDQGUHJXODWLRQV3URYLGHG7KDWQRUHWURDFWLYH
SD\PHQW RI FRQWULEXWLRQV VKDOO EH DOORZHG H[FHSW DV SURYLGHG LQ WKLV
6HFWLRQ


DERXWEODQN

6(&7,21
0HWKRGRI&ROOHFWLRQDQG3D\PHQW7KH666VKDOO
UHTXLUH D FRPSOHWH DQG SURSHU FROOHFWLRQ DQG SD\PHQW RI FRQWULEXWLRQV
DQG SURSHU LGHQWLILFDWLRQ RI WKH HPSOR\HU DQG WKH HPSOR\HH 3D\PHQW





/DZV

DQG SURSHU LGHQWLILFDWLRQ RI WKH HPSOR\HU DQG WKH HPSOR\HH 3D\PHQW
PD\ EH PDGH LQ FDVK FKHFNV VWDPSV FRXSRQV WLFNHWV RU RWKHU
UHDVRQDEOHGHYLFHVWKDWWKH&RPPLVVLRQPD\DGRSW
6(&7,21 
(PSOR\PHQW 5HFRUGV DQG 5HSRUWV  D (DFK
HPSOR\HU VKDOO LPPHGLDWHO\ UHSRUW WR WKH 666 WKH QDPHV DJHV FLYLO
VWDWXVRFFXSDWLRQVVDODULHVDQGGHSHQGHQWVRIDOOKLVHPSOR\HHVZKR
DUH VXEMHFW WR FRPSXOVRU\ FRYHUDJH 3URYLGHG 7KDW LI DQ HPSOR\HH
VXEMHFWWRFRPSXOVRU\FRYHUDJHVKRXOGGLHRUEHFRPHVLFNRUGLVDEOHG
RU UHDFK WKH DJH RI VL[W\  ZLWKRXW WKH 666 KDYLQJ SUHYLRXVO\
UHFHLYHG DQ\ UHSRUW RU ZULWWHQ FRPPXQLFDWLRQ DERXW KLP IURP KLV
HPSOR\HUWKHVDLGHPSOR\HUVKDOOSD\WRWKH666GDPDJHVHTXLYDOHQW
WR WKH EHQHILWV WR ZKLFK VDLG HPSOR\HH PHPEHU ZRXOG KDYH EHHQ
HQWLWOHG KDG KLV QDPH EHHQ UHSRUWHG RQ WLPH E\ WKH HPSOR\HU WR WKH
666 H[FHSW WKDW LQ FDVH RI SHQVLRQ EHQHILWV WKH HPSOR\HU VKDOO EH
OLDEOHWRSD\WKH666GDPDJHVHTXLYDOHQWWRWKHDFFXPXODWHGSHQVLRQ
GXH DV RI WKH GDWH RI VHWWOHPHQW RI WKH FODLP RU WKH ILYH  \HDUV

SHQVLRQZKLFKHYHULVKLJKHULQFOXGLQJGHSHQGHQWV
SHQVLRQ3URYLGHG
IXUWKHU 7KDW LI WKH FRQWLQJHQF\ RFFXUV ZLWKLQ WKLUW\  GD\V IURP WKH
GDWH RI HPSOR\PHQW WKH HPSOR\HU VKDOO EH UHOLHYHG RI KLV OLDELOLW\ IRU
GDPDJHV 3URYLGHG IXUWKHU 7KDW DQ\ SHUVRQ RU HQWLW\ HQJDJLQJ WKH
VHUYLFHV RI DQ LQGHSHQGHQW FRQWUDFWRU VKDOO EH VXEVLGLDULO\ OLDEOH ZLWK
VXFKFRQWUDFWRUIRUDQ\FLYLOOLDELOLW\LQFXUUHGE\WKHODWWHUXQGHUWKLVDFW
3URYLGHGILQDOO\7KDWWKHVDPHSHUVRQRUHQWLW\HQJDJLQJWKHVHUYLFHV
RI DQ LQGHSHQGHQW FRQWUDFWRU VKDOO UHTXLUH VXFK FRQWUDFWRU WR SRVW D
VXUHW\ERQGWRJXDUDQWHHWKHSD\PHQWRIWKHZRUNHU
VEHQHILWV
E
6KRXOGWKHHPSOR\HUPLVUHSUHVHQWWKHWUXHGDWHRIHPSOR\PHQW
RI WKH HPSOR\HH PHPEHU RU UHPLW WR WKH 666 FRQWULEXWLRQV ZKLFK DUH
OHVVWKDQWKRVHUHTXLUHGLQWKLV$FWRUIDLOWRUHPLWDQ\FRQWULEXWLRQGXH
SULRUWRWKHGDWHRIFRQWLQJHQF\UHVXOWLQJLQDUHGXFWLRQRIEHQHILWVVXFK
HPSOR\HU VKDOO SD\ WR WKH 666 GDPDJHV HTXLYDOHQW WR WKH GLIIHUHQFH
EHWZHHQ WKH DPRXQW RI EHQHILW WR ZKLFK WKH HPSOR\HH PHPEHU RU KLV
EHQHILFLDU\LVHQWLWOHGKDGWKHSURSHUFRQWULEXWLRQVEHHQUHPLWWHGWRWKH
666DQGWKHDPRXQWSD\DEOHRQWKHEDVLVRIWKHFRQWULEXWLRQVDFWXDOO\
UHPLWWHG 3URYLGHG 7KDW LI WKH HPSOR\HH PHPEHU RU KLV EHQHILFLDU\ LV
HQWLWOHG WR SHQVLRQ EHQHILWV WKH GDPDJHV VKDOO EH HTXLYDOHQW WR WKH
DFFXPXODWHGSHQVLRQGXHDVRIWKHGDWHRIVHWWOHPHQWRIWKHFODLPRUWR
WKH ILYH  \HDUV
 SHQVLRQ ZKLFKHYHU LV KLJKHU LQFOXGLQJ GHSHQGHQWV

SHQVLRQ
FGDVLD

,Q DGGLWLRQ WR WKH OLDELOLW\ PHQWLRQHG LQ WKH SUHFHGLQJ SDUDJUDSKV D
DQGEKHUHRIWKHHPSOR\HUVKDOODOVREHOLDEOHIRUWKHSD\PHQWRIWKH
FRUUHVSRQGLQJXQUHPLWWHGFRQWULEXWLRQVDQGSHQDOWLHVWKHUHRQ

DERXWEODQN

F
7KHUHFRUGVDQGUHSRUWVGXO\DFFRPSOLVKHGDQGVXEPLWWHGWRWKH
666E\WKHHPSOR\HURUWKHPHPEHUDVWKHFDVHPD\EHVKDOOEHNHSW
FRQILGHQWLDO E\ WKH 666 H[FHSW LQ FRPSOLDQFH ZLWK D VXESRHQD GXFHV
WHFXPLVVXHGE\WKH&RXUWVVKDOOQRWEHGLYXOJHGZLWKRXWWKHFRQVHQWRI





/DZV

WHFXPLVVXHGE\WKH&RXUWVVKDOOQRWEHGLYXOJHGZLWKRXWWKHFRQVHQWRI
WKH 666 3UHVLGHQW RU DQ\ RIILFLDO RI WKH 666 GXO\ DXWKRUL]HG E\ KLP
VKDOO EH SUHVXPHG FRUUHFW DV WR WKH GDWD DQG RWKHU PDWWHUV VWDWHG
WKHUHLQ XQOHVV WKH QHFHVVDU\ FRUUHFWLRQV WR VXFK UHFRUGV DQG UHSRUWV
KDYH EHHQ SURSHUO\ PDGH E\ WKH SDUWLHV FRQFHUQHG EHIRUH WKH ULJKW WR
WKHEHQHILWEHLQJFODLPHGDFFUXHVDQGVKDOOEHPDGHWKHEDVLVIRUWKH
DGMXGLFDWLRQRIWKHFODLP,IDVDUHVXOWRIVXFKDGMXGLFDWLRQWKH666LQ
JRRG IDLWK SD\V D PRQWKO\ SHQVLRQ WR D EHQHILFLDU\ ZKR LV LQIHULRU LQ
ULJKWWRDQRWKHUEHQHILFLDU\RUZLWKZKRPDQRWKHUEHQHILFLDU\LVHQWLWOHG
WR VKDUH VXFK SD\PHQWV VKDOO GLVFKDUJH WKH 666 IURP OLDELOLW\ XQOHVV
DQGXQWLOVXFKRWKHUEHQHILFLDU\QRWLILHVWKH666RIKLVFODLPSULRUWRWKH
SD\PHQWV
G
(YHU\ HPSOR\HU VKDOO NHHS WUXH DQG DFFXUDWH ZRUN UHFRUGV IRU
VXFK SHULRG DQG FRQWDLQLQJ VXFK LQIRUPDWLRQ DV WKH &RPPLVVLRQ PD\
SUHVFULEH LQ DGGLWLRQ WR DQ
$QQXDO 5HJLVWHU RI 1HZ DQG 6HSDUDWHG
(PSOR\HHV
ZKLFKVKDOOEHVHFXUHGIURPWKH666ZKHUHLQWKHHPSOR\HU
VKDOO HQWHU RQ WKH ILUVW GD\ RI HPSOR\PHQW RU RQ WKH HIIHFWLYH GDWH RI
VHSDUDWLRQ WKH QDPHV RI WKH SHUVRQV HPSOR\HG RU VHSDUDWHG IURP
HPSOR\PHQW WKHLU 666 QXPEHUV DQG VXFK RWKHU GDWD WKDW WKH
&RPPLVVLRQPD\UHTXLUHDQGVDLGDQQXDOUHJLVWHUVKDOOEHVXEPLWWHGWR
WKH 666 LQ WKH PRQWK RI -DQXDU\ RI HDFK \HDU 6XFK UHFRUGV VKDOO EH
RSHQ IRU LQVSHFWLRQ E\ WKH 666 RU LWV DXWKRUL]HG UHSUHVHQWDWLYHV
TXDUWHUO\RUDVRIWHQDVWKH666PD\UHTXLUH
7KH666PD\DOVRUHTXLUHHDFKHPSOR\HUWRVXEPLWZLWKUHVSHFWWRWKH
SHUVRQVLQKLVHPSOR\UHSRUWVQHHGHGIRUWKHHIIHFWLYHDGPLQLVWUDWLRQRI
WKLV$FW
H
(DFKHPSOR\HUVKDOOUHTXLUHDVDFRQGLWLRQWRHPSOR\PHQWWKH
SUHVHQWDWLRQ RI D UHVLJQDWLRQ QXPEHU VHFXUHG E\ WKH SURVSHFWLYH
HPSOR\HHIURPWKH666LQDFFRUGDQFHZLWKVXFKSURFHGXUHDVWKH666
PD\DGRSW3URYLGHG7KDWLQFDVHRIHPSOR\HHVZKRKDYHHDUOLHUEHHQ
DVVLJQHGUHJLVWUDWLRQQXPEHUVE\YLUWXHRIDSUHYLRXVHPSOR\PHQWVXFK
QXPEHUVRULJLQDOO\DVVLJQHGWRWKHPVKRXOGEHXVHGIRUSXUSRVHVRIWKLV
6HFWLRQ 3URYLGHG IXUWKHU 7KDW WKH LVVXDQFH RI VXFK UHJLVWUDWLRQ
QXPEHUVE\WKH666VKDOOQRWH[HPSWWKHHPSOR\HUIURPFRPSO\LQJZLWK
WKHSURYLVLRQVRISDUDJUDSKDRIWKLV6HFWLRQ
I
1RWZLWKVWDQGLQJ DQ\ ODZ WR WKH FRQWUDU\ PLFURILOP RU QRQ
HUDVDEOHRSWLFDOGLVNDQGRWKHUVLPLODUDUFKLYDOPHGLDFRSLHVRIRULJLQDO
666 UHFRUGV DQG UHSRUWV RU FRSLHV RI VXFK UHFRUGV DQG UHSRUWV GXO\
FHUWLILHG E\ WKH RIILFLDO FXVWRGLDQ WKHUHRI VKDOO KDYH WKH VDPH
HYLGHQWLDU\YDOXHDVWKHRULJLQDOVDQGEHDGPLVVLEOHDVHYLGHQFHLQDOO
OHJDOSURFHHGLQJV

DERXWEODQN

J
1RWZLWKVWDQGLQJDQ\ODZWRWKHFRQWUDU\ORFDOJRYHUQPHQWXQLWV
VKDOO SULRU WR LVVXLQJ DQ\ DQQXDO EXVLQHVV OLFHQVH RU SHUPLW UHTXLUH
VXEPLVVLRQ RI FHUWLILFDWH RI 666 FRYHUDJH DQG FRPSOLDQFH ZLWK WKH





/DZV

VXEPLVVLRQ RI FHUWLILFDWH RI 666 FRYHUDJH DQG FRPSOLDQFH ZLWK WKH
SURYLVLRQVRIWKLV$FW3URYLGHG7KDWWKHFHUWLILFDWLRQRUFOHDUDQFHVKDOO
EH LVVXHG E\ WKH 666 ZLWKLQ ILYH  ZRUNLQJ GD\V IURP UHFHLSW RI WKH
UHTXHVW
6(&7,21 $
5HSRUW DQG 5HJLVWUDWLRQ RI WKH 6HOIHPSOR\HG
PHPEHU  (DFK FRYHUHG VHOIHPSOR\HG PHPEHU VKDOO ZLWKLQ WKLUW\
GD\VIURPWKHILUVWGD\KHVWDUWHGWKHSUDFWLFHRIKLVSURIHVVLRQRU
EXVLQHVVRSHUDWLRQVUHJLVWHUDQGUHSRUWWRWKH666KLVQDPHDJHFLYLO
VWDWXVRFFXSDWLRQDYHUDJHPRQWKO\QHWLQFRPHDQGKLVGHSHQGHQWV
6(&7,21
'HSRVLWDQG'LVEXUVHPHQWV$OOPRQH\SDLGWRRU
FROOHFWHGE\WKH666HYHU\\HDUXQGHUWKLV$FWDQGDOODFFUXDOVWKHUHWR
VKDOO EH GHSRVLWHG DGPLQLVWHUHG DQG GLVEXUVHG LQ WKH VDPH PDQQHU
DQGXQGHUWKHVDPHFRQGLWLRQVDQGUHTXLUHPHQWVDVSURYLGHGE\ODZIRU
RWKHUSXEOLFVSHFLDOIXQGV3URYLGHG7KDWQRWPRUHWKDQWZHOYHSHUFHQW
RIWKHWRWDO\HDUO\FRQWULEXWLRQVSOXVWKUHHSHUFHQWRIRWKHU
UHYHQXHV VKDOO EH GLVEXUVHG IRU DGPLQLVWUDWLYH DQG RSHUDWLRQDO
H[SHQVHV VXFK DV VDODULHV DQG ZDJHV VXSSOLHV DQG PDWHULDOV
GHSUHFLDWLRQ DQG WKH PDLQWHQDQFH RI RIILFHV RI WKH 666 3URYLGHG
IXUWKHU 7KDW LI WKH H[SHQVHV LQ DQ\ \HDU DUH OHVV WKDQ WKH PD[LPXP
DPRXQWSHUPLVVLEOHWKHGLIIHUHQFHVKDOOQRWEHDYDLOHGRIDVDGGLWLRQDO
H[SHQVHLQWKHIROORZLQJ\HDUV
6(&7,21
,QYHVWPHQWRI5HVHUYH)XQGV$OOUHYHQXHVRIWKH
666 WKDW DUH QRW QHHGHG WR PHHW WKH FXUUHQW DGPLQLVWUDWLYH DQG
RSHUDWLRQDO H[SHQVHV LQFLGHQWDO WR WKH FDUU\LQJ RXW RI WKLV $FW VKDOO EH
DFFXPXODWHG LQ D IXQG WR EH NQRZQ DV WKH 5HVHUYH )XQG 6XFK
SRUWLRQV RI WKH 5HVHUYH )XQG DV DUH QRW QHHGHG WR PHHW WKH FXUUHQW
EHQHILW REOLJDWLRQV WKHUHRI VKDOO EH NQRZQ DV WKH ,QYHVWPHQW 5HVHUYH
)XQG ZKLFK WKH &RPPLVVLRQ VKDOO PDQDJH DQG LQYHVW ZLWK WKH VNLOO
FDUH SUXGHQFH DQG GLOLJHQFH QHFHVVDU\ XQGHU WKH FLUFXPVWDQFHV WKHQ
SUHYDLOLQJ WKDW D SUXGHQW PDQ DFWLQJ LQ OLNH FDSDFLW\ DQG IDPLOLDU ZLWK
VXFK PDWWHUV ZRXOG H[HUFLVH LQ WKH FRQGXFW RI DQ HQWHUSULVH RI D OLNH
FKDUDFWHU DQG ZLWK VLPLODU DLPV 3XUVXDQW WKHUHWR DQG LQ OLQH ZLWK WKH
EDVLFSULQFLSOHVRIVDIHW\JRRG\LHOGDQGOLTXLGLW\WKH&RPPLVVLRQVKDOO
LQYHVW WKH IXQGV WR HDUQ DQ DQQXDO LQFRPH QRW OHVV WKDQ WKH DYHUDJH
UDWHV RI WUHDVXU\ ELOOV RU DQ\ RWKHU DFFHSWDEOH PDUNHW \LHOG LQGLFDWRU LQ
DQ\RUDOORIWKHIROORZLQJ
D
,Q ERQGV VHFXULWLHV SURPLVVRU\ QRWHV RU RWKHU HYLGHQFH RI
LQGHEWHGQHVV RI WKH *RYHUQPHQW RI WKH 3KLOLSSLQHV RU LQ ERQGV
VHFXULWLHVSURPLVVRU\QRWHVRURWKHUHYLGHQFHRILQGHEWHGQHVVWRZKLFK
WKH IXOO IDLWK FUHGLW DQG XQFRQGLWLRQDO JXDUDQWHH RI WKH *RYHUQPHQW RI
WKH3KLOLSSLQHVLVSOHGJHG
E
,Q ERQGV VHFXULWLHV SURPLVVRU\ QRWHV RU RWKHU HYLGHQFH RI
LQGHEWHGQHVV RI WKH *RYHUQPHQW RI WKH 3KLOLSSLQHV RU DQ\ RI LWV
DJHQFLHVRULQVWUXPHQWDOLWLHVWRILQDQFHGRPHVWLFLQIUDVWUXFWXUHSURMHFWV

DERXWEODQN





/DZV

DJHQFLHVRULQVWUXPHQWDOLWLHVWRILQDQFHGRPHVWLFLQIUDVWUXFWXUHSURMHFWV
VXFK DV URDGV EULGJHV SRUWV WHOHFRPPXQLFDWLRQV DQG RWKHU VLPLODU
SURMHFWV 3URYLGHG 7KDW WKH LQVWUXPHQWV LVVXHG E\ DQ DJHQF\ RU
LQVWUXPHQWDOLW\ RI WKH JRYHUQPHQW VKDOO EH JXDUDQWHHG E\ WKH
*RYHUQPHQWRIWKH3KLOLSSLQHVRUDQ\JRYHUQPHQWILQDQFLDOLQVWLWXWLRQRU
DFFHSWDEOH PXOWLODWHUDO DJHQF\ 3URYLGHG IXUWKHU 7KDW WKH 666 VKDOO
KDYH SULRULW\ RYHU WKH UHYHQXHV RI WKH SURMHFWV 3URYLGHG ILQDOO\ 7KDW
VXFK LQYHVWPHQWV VKDOO QRW H[FHHG WKLUW\ SHUFHQW  RI WKH
,QYHVWPHQW5HVHUYH)XQG
F
,Q ERQGV VHFXULWLHV SURPLVVRU\ QRWHV RU RWKHU HYLGHQFH RI
LQGHEWHGQHVV RI JRYHUQPHQW ILQDQFLDO LQVWLWXWLRQV RU JRYHUQPHQW
FRUSRUDWLRQV ZLWK DFFHSWDEOH FUHGLW RU JXDUDQWHH 3URYLGHG 7KDW VXFK
LQYHVWPHQWV VKDOO QRW H[FHHG WKLUW\ SHUFHQW  RI WKH ,QYHVWPHQW
5HVHUYH)XQG
G
,Q ERQGV VHFXULWLHV GHSRVLWV SURPLVVRU\ QRWHV RU RWKHU
HYLGHQFHRILQGHEWHGQHVVRIDQ\EDQNGRLQJEXVLQHVVLQWKH3KLOLSSLQHV
DQG LQ JRRG VWDQGLQJ ZLWK WKH %DQJNR 6HQWUDO QJ 3LOLSLQDV WR ILQDQFH
ORDQVWRSULYDWHFRUSRUDWLRQVGRLQJEXVLQHVVLQWKH3KLOLSSLQHVLQFOXGLQJ
VFKRROV KRVSLWDOV VPDOODQGPHGLXP VFDOH LQGXVWULHV FRRSHUDWLYHV
DQG QRQJRYHUQPHQWDO RUJDQL]DWLRQV LQ ZKLFK FDVH WKH FROODWHUDOV RU
VHFXULWLHV VKDOO EH DVVLJQHG WR WKH 666 XQGHU VXFK WHUPV DQG
FRQGLWLRQV DV WKH FRPPLVVLRQ PD\ SUHVFULEH 3URYLGHG  7KDW LQ WKH
FDVHRIEDQNGHSRVLWVWKH\VKDOOQRWH[FHHGDWDQ\WLPHWKHXQLPSDLUHG
FDSLWDO DQG VXUSOXV RU WRWDO SULYDWH GHSRVLWV RI WKH GHSRVLWRU\ EDQN
ZKLFKHYHU LV VPDOOHU 3URYLGHG IXUWKHU 7KDW VDLG EDQN VKDOO ILUVW KDYH
EHHQGHVLJQDWHGDVDGHSRVLWRU\IRUKLVSXUSRVHE\WKH0RQHWDU\%RDUG
RI WKH %DQJNR 6HQWUDO QJ 3LOLSLQDV 3URYLGHG ILQDOO\ 7KDW VXFK
LQYHVWPHQWV VKDOO QRW H[FHHG IRUW\ SHUFHQW  RI WKH ,QYHVWPHQW
5HVHUYH)XQG
FG

H
,Q ERQGV VHFXULWLHV SURPLVVRU\ QRWHV RU RWKHU HYLGHQFH RI
LQGHEWHGQHVV RI VKHOWHU DJHQFLHV RI WKH 1DWLRQDO *RYHUQPHQW RU
ILQDQFLDO LQWHUPHGLDULHV WR ILQDQFH KRXVLQJ ORDQV RI PHPEHUV DQG LQ
ORQJWHUP GLUHFW LQGLYLGXDO RU JURXS KRXVLQJ ORDQV JLYLQJ SULRULW\ WR WKH
ORZLQFRPH JURXSV XS WR D PD[LPXP RI QLQHW\ SHUFHQW  RI WKH
DSSUDLVHG YDOXH RI WKH SURSHUWLHV WR EH PRUWJDJHG E\ WKH ERUURZHUV
DQG
,Q VKRUW DQG PHGLXP WHUP ORDQV WR PHPEHUV VXFK DV VDODU\
HGXFDWLRQDO OLYHOLKRRG PDULWDO FDODPLW\ DQG HPHUJHQF\ ORDQV
3URYLGHG7KDWQRWPRUHWKDQWKLUW\ILYHSHUFHQWRIWKH,QYHVWPHQW
5HVHUYH )XQG DW DQ\ WLPH VKDOO EH LQYHVWHG IRU KRXVLQJ SXUSRVHV
3URYLGHG IXUWKHU 7KDW QRW PRUH WKDQ WHQ SHUFHQW  RI WKH
,QYHVWPHQW 5HVHUYH )XQG VKDOO EH LQYHVWHG LQ VKRUW DQG PHGLXP WHUP
ORDQV
DERXWEODQN





/DZV

I
,Q ERQGV VHFXULWLHV SURPLVVRU\ QRWHV RU RWKHU HYLGHQFH RI
LQGHEWHGQHVV RI HGXFDWLRQDO RU PHGLFDO LQVWLWXWLRQV WR ILQDQFH WKH
FRQVWUXFWLRQ LPSURYHPHQW DQG PDLQWHQDQFH RI VFKRROV DQG KRVSLWDOV
DQG WKHLU HTXLSPHQW DQG IDFLOLWLHV 3URYLGHG 7KDW VXFK LQYHVWPHQWV
VKDOOQRWH[FHHGWHQSHUFHQWRIWKH,QYHVWPHQW5HVHUYH)XQG
J
,QUHDOHVWDWHSURSHUW\LQFOXGLQJVKDUHVRIVWRFNVLQYROYLQJUHDO
HVWDWH SURSHUW\ DQG LQYHVWPHQWV VHFXUHG E\ ILUVW PRUWJDJHV RQ UHDO
HVWDWH RU RWKHU FROODWHUDOV DFFHSWDEOH WR WKH 666 3URYLGHG 7KDW VXFK
SURMHFWVDQGLQYHVWPHQWVVKDOOLQWKHGHWHUPLQDWLRQRIWKH&RPPLVVLRQ
UHGRXQGWRWKHEHQHILWRIWKH666LWVPHPEHUVDVZHOODVWKHJHQHUDO
SXEOLF 3URYLGHG IXUWKHU 7KDW LQYHVWPHQW LQ UHDO HVWDWH SURSHUW\
LQFOXGLQJ VKDUHV RI VWRFNV LQYROYLQJ UHDO HVWDWH SURSHUW\ VKDOO QRW
H[FHHG ILYH SHUFHQW  RI WKH ,QYHVWPHQW 5HVHUYH )XQG 3URYLGHG
ILQDOO\ 7KDW LQYHVWPHQWV LQ RWKHU LQFRPHHDUQLQJ SURMHFWV DQG
LQYHVWPHQWV VHFXUHG E\ ILUVW PRUWJDJHV RU RWKHU FROODWHUDOV VKDOO QRW
H[FHHGWZHQW\ILYHSHUFHQWRIWKH,QYHVWPHQW5HVHUYH)XQG
K
,Q ERQGV GHEHQWXUHV VHFXULWLHV SURPLVVRU\ QRWHV RU RWKHU
HYLGHQFH RI LQGHEWHGQHVV RI DQ\ SULPH FRUSRUDWLRQ RU PXOWLODWHUDO
LQVWLWXWLRQ WR ILQDQFH GRPHVWLF SURMHFWV 3URYLGHG 7KDW WKH LVVXLQJ RU
DVVXPLQJ HQWLW\ RU LWV SUHGHFHVVRUV VKDOO QRW KDYH GHIDXOWHG LQ WKH
SD\PHQWRILQWHUHVWRQDQ\RILWVVHFXULWLHVDQGWKDWGXULQJHDFKRIDQ\
WKUHH  LQFOXGLQJ WKH ODVW WZR  RI WKH ILYH  ILVFDO \HDUV QH[W
SUHFHGLQJWKHGDWHRIDFTXLVLWLRQE\WKH666RIVXFKERQGVGHEHQWXUHV
RU RWKHU HYLGHQFH RI LQGHEWHGQHVV WKH QHW HDUQLQJV RI WKH LVVXLQJ RU
DVVXPLQJ LQVWLWXWLRQ DYDLODEOH IRU LWV IL[HG FKDUJHV DV GHILQHG LQ WKLV
$FWVKDOOKDYHEHHQQRWOHVVWKDQRQHDQGRQHTXDUWHUWLPHVWKHWRWDORI
LWVIL[HGFKDUJHVIRUVXFK\HDU3URYLGHGIXUWKHU7KDWVXFKLQYHVWPHQWV
VKDOOQRWH[FHHGWKLUW\SHUFHQWRIWKH,QYHVWPHQW5HVHUYH)XQG
L
,Q SUHIHUUHG RU FRPPRQ VKDUHV RI VWRFNV OLVWHG RU DERXW WR EH
OLVWHG LQ WKH VWRFN H[FKDQJH RU RSWLRQV RU ZDUUDQWV WR VXFK VWRFNV RU
VXEMHFWWRSULRUDSSURYDORIWKH%DQJNR6HQWUDOQJ3LOLSLQDVVXFKRWKHU
ULVN PDQDJHPHQW LQVWUXPHQWV RI DQ\ SULPH RU VROYHQW FRUSRUDWLRQ RU
ILQDQFLDOLQVWLWXWLRQFUHDWHGRUH[LVWLQJXQGHUWKHODZVRIWKH3KLOLSSLQHV
ZLWKSURYHQWUDFNUHFRUGRISURILWDELOLW\RYHUWKHODVWWKUHH\HDUVDQG
SD\PHQW RI GLYLGHQGV DW OHDVW RQFH RYHU WKH VDPH SHULRG 3URYLGHG
7KDW VXFK LQYHVWPHQWV VKDOO QRW H[FHHG WKLUW\ SHUFHQW  RI WKH
,QYHVWPHQW5HVHUYH)XQG

DERXWEODQN

M
,QGRPHVWLFRUIRUHLJQPXWXDOIXQGVLQH[LVWHQFHIRUDWOHDVWWKUHH
 \HDUV 3URYLGHG 7KDW VXFK LQYHVWPHQWV VKDOO QRW H[FHHG WZHQW\
SHUFHQWRIWKH,QYHVWPHQW5HVHUYH)XQG3URYLGHGIXUWKHU7KDW
LQYHVWPHQWVLQIRUHLJQPXWXDOIXQGVVKDOOQRWH[FHHGRQHSHUFHQW
RI WKH ,QYHVWPHQW 5HVHUYH )XQG LQ WKH ILUVW \HDU ZKLFK VKDOO EH
LQFUHDVHGE\RQHSHUFHQWIRUHDFKVXFFHHGLQJ\HDUEXWLQQRFDVH
VKDOO LW H[FHHG VHYHQ DQG RQHKDOI SHUFHQW  RI WKH ,QYHVWPHQW





/DZV

VKDOO LW H[FHHG VHYHQ DQG RQHKDOI SHUFHQW  RI WKH ,QYHVWPHQW
5HVHUYH)XQG
N
,Q IRUHLJQ FXUUHQF\ GHSRVLWV RU WULSOH $ IRUHLJQ FXUUHQF\
GHQRPLQDWHG GHEWV SULPH DQG QRQVSHFXODWLYH HTXLWLHV DQG RWKHU
%DQJNR 6HQWUDO QJ 3LOLSLQDV DSSURYHG ILQDQFLDO LQVWUXPHQWV RU RWKHU
DVVHWV LVVXHG LQ DFFRUGDQFH ZLWK H[LVWLQJ ODZV RI WKH FRXQWULHV ZKHUH
VXFKILQDQFLDOLQVWUXPHQWVDUHLVVXHG3URYLGHG7KDWWKHVHLQVWUXPHQWV
RUDVVHWVDUHOLVWHGLQERXUVHVRIWKHUHVSHFWLYHFRXQWULHVZKHUHWKHVH
LQVWUXPHQWV RU DVVHWV DUH LVVXHG 3URYLGHG IXUWKHU 7KDW WKH LVVXLQJ
FRPSDQ\KDVSURYHQWUDFNUHFRUGRUSURILWDELOLW\RYHUWKHODVWWKUHH
\HDUV DQG D UHFRUG RI UHJXODU GLYLGHQG SD\RXW RYHU WKH VDPH SHULRG
3URYLGHG ILQDOO\ 7KDW VXFK LQYHVWPHQWV VKDOO QRW H[FHHG RQH SHUFHQW
 RI WKH ,QYHVWPHQW 5HVHUYH )XQG LQ WKH ILUVW \HDU ZKLFK VKDOO EH
LQFUHDVHGE\RQHSHUFHQWIRUHDFKVXFFHHGLQJ\HDUEXWLQQRFDVH
VKDOO LW H[FHHG VHYHQ DQG RQHKDOI SHUFHQW  RI WKH ,QYHVWPHQW
5HVHUYH)XQG
O
,Q ORDQV VHFXUHG E\ VXFK FROODWHUDOV OLNH FDVK JRYHUQPHQW
VHFXULWLHVRUJXDUDQWHHVRIPXOWLODWHUDOLQVWLWXWLRQV3URYLGHG7KDWVXFK
LQYHVWPHQWV VKDOO QRW H[FHHG WKLUW\ SHUFHQW  RI WKH ,QYHVWPHQW
5HVHUYH)XQGDQG
P
,Q RWKHU %DQJNR 6HQWUDO QJ 3LOLSLQDV DSSURYHG LQYHVWPHQW
LQVWUXPHQWV ZLWK WKH VDPH LQWULQVLF TXDOLW\ DV WKRVH HQXPHUDWHG LQ
SDUDJUDSKVDWROKHUHRIVXEMHFWWRWKHSROLFLHVDQGJXLGHOLQHVZKLFK
WKHFRPPLVVLRQPD\IRUPXODWH
1R SRUWLRQ RI WKH ,QYHVWPHQW 5HVHUYH )XQG RU LQFRPH WKHUHRI VKDOO
DFFUXHWRWKHJHQHUDOIXQGRIWKH1DWLRQDO*RYHUQPHQWRUWRDQ\RILWV
DJHQFLHVRULQVWUXPHQWDOLWLHVLQFOXGLQJJRYHUQPHQWRZQHGRUFRQWUROOHG
FRUSRUDWLRQVH[FHSWDVPD\EHDOORZHGXQGHUWKLV$FW3URYLGHG 7KDW
QR SRUWLRQ RI WKH ,QYHVWPHQW 5HVHUYH )XQG VKDOO EH LQYHVWHG IRU DQ\
SXUSRVHRULQDQ\LQVWUXPHQWLQVWLWXWLRQRULQGXVWU\RYHUDQGDERYHWKH
SUHVFULEHGFXPXODWLYHFHLOLQJVDVIROORZV


LQSULYDWHVHFXULWLHV



LQKRXVLQJ



LQUHDOHVWDWHUHODWHGLQYHVWPHQWV



LQVKRUWDQGPHGLXPWHUPPHPEHUORDQV


LQ JRYHUQPHQW ILQDQFLDO LQVWLWXWLRQV DQG
FRUSRUDWLRQV

DERXWEODQN



LQLQIUDVWUXFWXUHSURMHFWV



LQDQ\SDUWLFXODULQGXVWU\



LQIRUHLJQFXUUHQF\GHQRPLQDWHGLQYHVWPHQWV




/DZV

6(&7,21 $
)XQG 0DQDJHUV  $V SDUW RI LWV LQYHVWPHQW
RSHUDWLRQV WKH 666 PD\ DSSRLQW ORFDO RU LQ WKH DEVHQFH WKHUHRI
IRUHLJQ IXQG PDQDJHUV WR PDQDJH WKH ,QYHVWPHQW 5HVHUYH )XQG DV LW
PD\GHHPDSSURSULDWH
6(&7,21%
0RUWJDJRU,QVXUDQFH$FFRXQWD$VSDUWRILWV
LQYHVWPHQW RSHUDWLRQV WKH 666 VKDOO DFW DV LQVXUHU RI DOO RU SDUW RI LWV
LQWHUHVW RQ 666 SURSHUWLHV PRUWJDJHG WR WKH 666 RU OLYHV RI
PRUWJDJRUV ZKRVH SURSHUWLHV DUH PRUWJDJHG WR WKH 666 )RU WKLV
SXUSRVHWKH666VKDOOHVWDEOLVKDVHSDUDWHDFFRXQWWREHNQRZQDVWKH
0RUWJDJRUV
 ,QVXUDQFH $FFRXQW $OO DPRXQWV UHFHLYHG E\ WKH 666 LQ
FRQQHFWLRQ ZLWK WKH DIRUHVDLG LQVXUDQFH RSHUDWLRQV VKDOO EH SODFHG LQ
WKH 0RUWJDJRUV
 ,QVXUDQFH $FFRXQW 7KH DVVHWV DQG OLDELOLWLHV RI WKH
0RUWJDJRUV
 ,QVXUDQFH $FFRXQW VKDOO DW DOO WLPHV EH FOHDUO\ LGHQWLILDEOH
DQG GLVWLQJXLVKDEOH IURP WKH DVVHWV DQG OLDELOLWLHV LQ DOO RWKHU DFFRXQWV
RI WKH 666 1RWZLWKVWDQGLQJ DQ\ SURYLVLRQ RI ODZ WR WKH FRQWUDU\ WKH
DVVHWV KHOG LQ WKH 0RUWJDJRUV
 ,QVXUDQFH $FFRXQW VKDOO QRW EH
FKDUJHDEOHZLWKWKHOLDELOLWLHVDULVLQJRXWRIDQ\RWKHUEXVLQHVVWKH666
PD\FRQGXFWEXWVKDOOEHKHOGDQGDSSOLHGH[FOXVLYHO\IRUWKHEHQHILWRI
WKH RZQHUV RU EHQHILFLDULHV RI WKH LQVXUDQFH FRQWUDFWV LVVXHG E\ WKH
666XQGHUWKLVSDUDJUDSK
FGD

E
7KH666PD\LQVXUHDQ\RILWVLQWHUHVWVRUSDUWWKHUHRIZLWKDQ\
SULYDWH FRPSDQ\ RU UHLQVXUHU 7KH ,QVXUDQFH &RPPLVVLRQ RU LWV
DXWKRUL]HGUHSUHVHQWDWLYHVVKDOOPDNHDQH[DPLQDWLRQLQWRWKHILQDQFLDO
FRQGLWLRQDQGPHWKRGVRIWUDQVDFWLQJEXVLQHVVRIWKH666DWOHDVWRQFH
LQWZR\HDUVEXWVXFKH[DPLQDWLRQVKDOOEHOLPLWHGWRWKHLQVXUDQFH
RSHUDWLRQRIWKH666DVDXWKRUL]HGXQGHUWKLVSDUDJUDSKDQGVKDOOQRW
HPEUDFH WKH RWKHU RSHUDWLRQV RI WKH 666 DQG WKH UHSRUW RI VDLG
H[DPLQDWLRQ VKDOO EH VXEPLWWHG WR WKH &RPPLVVLRQ DQG D FRS\ WKHUHRI
VKDOOEHIXUQLVKHGWKH2IILFHRIWKH3UHVLGHQWRIWKH3KLOLSSLQHVZLWKLQD
UHDVRQDEOH WLPH DIWHU WKH FORVH RI WKH H[DPLQDWLRQ 3URYLGHG 7KDW IRU
HDFKH[DPLQDWLRQWKH666VKDOOSD\WRWKH,QVXUDQFH&RPPLVVLRQDQ
DPRXQW HTXDO WR WKH DFWXDO H[SHQVHV RI WKH ,QVXUDQFH &RPPLVVLRQ LQ
WKHFRQGXFWRIWKHH[DPLQDWLRQLQFOXGLQJWKHVDODULHVRIWKHH[DPLQHUV
DQG RI WKH DFWXDU\ RI WKH ,QVXUDQFH &RPPLVVLRQ ZKR KDYH EHHQ
DVVLJQHG WR PDNH VXFK H[DPLQDWLRQ IRU WKH DFWXDO WLPH VSHQW LQ VDLG
H[DPLQDWLRQ3URYLGHG IXUWKHU 7KDW WKH JHQHUDO ODZ RQ LQVXUDQFH DQG
WKHUXOHVDQGUHJXODWLRQVSURPXOJDWHGWKHUHXQGHUVKDOOKDYHVXSSOHWRU\
DSSOLFDWLRQLQVRIDUDVLWLVQRWLQFRQIOLFWZLWKWKLV$FWDQGLWVUXOHVDQG
UHJXODWLRQV

DERXWEODQN

6(&7,21 
5HFRUGV DQG 5HSRUWV  7KH 666 3UHVLGHQW VKDOO
NHHSDQGFDXVHWRNHHSUHFRUGVRIRSHUDWLRQVRIWKHIXQGVRIWKH666
DQGRIGLVEXUVHPHQWVWKHUHRIDQGDOODFFRXQWVRISD\PHQWVPDGHRXWRI
VDLGIXQGV'XULQJWKHPRQWKRI-DQXDU\HDFK\HDUWKH6663UHVLGHQW
VKDOO SUHSDUH IRU VXEPLVVLRQ WR WKH 3UHVLGHQW RI WKH 3KLOLSSLQHV DQG WR
WKH&RQJUHVVRIWKH3KLOLSSLQHVDUHSRUWRIRSHUDWLRQVRIWKH666GXULQJ





/DZV

WKH&RQJUHVVRIWKH3KLOLSSLQHVDUHSRUWRIRSHUDWLRQVRIWKH666GXULQJ
WKHSUHFHGLQJ\HDULQFOXGLQJVWDWLVWLFDOGDWDRQWKHQXPEHURISHUVRQV
FRYHUHG DQG EHQHILWHG WKHLU RFFXSDWLRQV DQG HPSOR\PHQW VWDWXV WKH
GXUDWLRQ DQG DPRXQW RI EHQHILWV SDLG WKH ILQDQFHV RI WKH 666 DW WKH
FORVHRIWKHVDLG\HDUDQGUHFRPPHQGDWLRQV+HVKDOODOVRFDXVHWREH
SXEOLVKHGLQWZRQHZVSDSHUVRIJHQHUDOFLUFXODWLRQLQWKH3KLOLSSLQHV
DV\QRSVLVRIWKHDQQXDOUHSRUWVKRZLQJLQSDUWLFXODUWKHVWDWXVRIWKH
ILQDQFHVRIWKH666DQGWKHEHQHILWVDGPLQLVWHUHG
6(&7,21 
3HQDO &ODXVH  D :KRHYHU IRU WKH SXUSRVH RI
FDXVLQJDQ\SD\PHQWWREHPDGHXQGHUWKLV$FWRUXQGHUDQDJUHHPHQW
WKHUHXQGHUZKHUHQRQHLVDXWKRUL]HGWREHSDLGVKDOOPDNHRUFDXVHWR
EHPDGHIDOVHVWDWHPHQWRUUHSUHVHQWDWLRQDVWRDQ\FRPSHQVDWLRQSDLG
RU UHFHLYHG RU ZKRHYHU PDNHV RU FDXVHV WR EH PDGH DQ\ IDOVH
VWDWHPHQWRIDPDWHULDOIDFWLQDQ\FODLPIRUDQ\EHQHILWSD\DEOHXQGHU
WKLV $FW RU DSSOLFDWLRQ IRU ORDQ ZLWK WKH 666 RU ZKRHYHU PDNHV RU
FDXVHV WR EH PDGH DQ\ IDOVH VWDWHPHQW UHSUHVHQWDWLRQ DIILGDYLW RU
GRFXPHQW LQ FRQQHFWLRQ ZLWK VXFK FODLP RU ORDQ VKDOO VXIIHU WKH
SHQDOWLHV SURYLGHG IRU LQ $UWLFOH 2QH KXQGUHG VHYHQW\WZR RI WKH
5HYLVHG3HQDO&RGH

E
:KRHYHUVKDOOREWDLQRUUHFHLYHDQ\PRQH\RUFKHFNXQGHUWKLV
$FW RU DQ\ DJUHHPHQW WKHUHXQGHU ZLWKRXW EHLQJ HQWLWOHG WKHUHWR ZLWK
LQWHQWWRGHIUDXGDQ\PHPEHUHPSOR\HURUWKH666VKDOOEHILQHGQRW
OHVV WKDQ )LYH WKRXVDQG SHVRV 3 QRU PRUH WKDQ 7ZHQW\
WKRXVDQG SHVRV 3 DQG LPSULVRQHG IRU QRW OHVV WKDQ VL[ 
\HDUVDQGRQHGD\QRUPRUHWKDQWZHOYH\HDUV
F
:KRHYHU EX\V VHOOV RIIHUV IRU VDOH XVHV WUDQVIHU RU WDNHV RU
JLYHVLQH[FKDQJHRUSOHGJHVRUJLYHVLQSOHGJHH[FHSWDVDXWKRUL]HG
LQWKLV$FWRULQUHJXODWLRQVPDGHSXUVXDQWWKHUHWRDQ\VWDPSFRXSRQ
WLFNHW ERRN RU RWKHU GHYLFH SUHVFULEHG SXUVXDQW WR 6HFWLRQ 7ZHQW\
WKUHH KHUHRI E\ WKH &RPPLVVLRQ IRU WKH FROOHFWLRQ RU SD\PHQW RI
FRQWULEXWLRQVUHTXLUHGKHUHLQVKDOOEHILQHGQRWOHVVWKDQ)LYHWKRXVDQG
SHVRV 3 QRU PRUH WKDQ 7ZHQW\ WKRXVDQG SHVRV 3 RU
LPSULVRQHGIRUQRWOHVVWKDQVL[\HDUVDQGRQHGD\QRUPRUHWKDQ
WZHOYH\HDUVRUERWKDWWKHGLVFUHWLRQRIWKHFRXUW

DERXWEODQN

G
:KRHYHU ZLWK LQWHQW WR GHIUDXG DOWHUV IRUJHV PDNHV RU
FRXQWHUIHLWVDQ\VWDPSFRXSRQWLFNHWERRNRURWKHUGHYLFHSUHVFULEHG
E\ WKH &RPPLVVLRQ IRU WKH FROOHFWLRQ RU SD\PHQW RI DQ\ FRQWULEXWLRQ
UHTXLUHGKHUHLQRUXVHVVHOOVOHQGVRUKDVLQKLVSRVVHVVLRQDQ\VXFK
DOWHUHGIRUJHGRUFRXQWHUIHLWHGPDWHULDOVRUPDNHVXVHVVHOOVRUKDV
LQ KLV SRVVHVVLRQ DQ\ VXFK DOWHUHG IRUJHG PDWHULDO LQ LPLWDWLRQ RI WKH
PDWHULDOXVHGLQWKHPDQXIDFWXUHRIVXFKVWDPSFRXSRQWLFNHWERRNRU
RWKHUGHYLFHVKDOOEHILQHGQRWOHVVWKDQ)LYHWKRXVDQGSHVRV3
QRUPRUHWKDQ7ZHQW\WKRXVDQGSHVRV3RULPSULVRQHGIRUQRW





/DZV

QRUPRUHWKDQ7ZHQW\WKRXVDQGSHVRV3RULPSULVRQHGIRUQRW

OHVVWKDQVL[\HDUVDQGRQHGD\QRUPRUHWKDQWZHOYH\HDUV
RUERWKDWWKHGLVFUHWLRQRIWKHFRXUW
H
:KRHYHUIDLOVRUUHIXVHVWRFRPSO\ZLWKWKHSURYLVLRQVRIWKLV$FW
RUZLWKWKHUXOHVDQGUHJXODWLRQVSURPXOJDWHGE\WKH&RPPLVVLRQVKDOO
EHSXQLVKHGE\DILQHRIQRWOHVVWKDQ)LYHWKRXVDQGSHVRV3QRU
PRUH WKDQ 7ZHQW\ WKRXVDQG SHVRV 3 RU LPSULVRQPHQW IRU QRW
OHVVWKDQVL[\HDUVDQGRQHGD\QRUPRUHWKDQWZHOYH\HDUV
RUERWKDWWKHGLVFUHWLRQRIWKHFRXUW3URYLGHG7KDWZKHUHWKHYLRODWLRQ
FRQVLVWVLQIDLOXUHRUUHIXVDOWRUHJLVWHUHPSOR\HHVRUKLPVHOILQFDVHRI
WKH FRYHUHG VHOIHPSOR\HG RU WR GHGXFW FRQWULEXWLRQV IURP WKH
HPSOR\HHV
FRPSHQVDWLRQDQGUHPLWWKHVDPHWRWKH666WKHSHQDOW\
VKDOOEHDILQHRIQRWOHVVWKDQ)LYHWKRXVDQGSHVRV3QRUPRUH
WKDQ 7ZHQW\ WKRXVDQG SHVRV 3 DQG LPSULVRQPHQW IRU QRW OHVV
WKDQVL[\HDUVDQGRQHGD\QRUPRUHWKDQWZHOYH\HDUV
FGWDL

I
,IWKHDFWRURPLVVLRQSHQDOL]HGE\WKLV$FWEHFRPPLWWHGE\DQ
DVVRFLDWLRQ SDUWQHUVKLS FRUSRUDWLRQ RU DQ\ RWKHU LQVWLWXWLRQ LWV
PDQDJLQJ KHDG GLUHFWRUV RU SDUWQHUV VKDOO EH OLDEOH WR WKH SHQDOWLHV
SURYLGHGLQWKLV$FWIRUWKHRIIHQVH
J
$Q\ HPSOR\HH RI WKH 666 ZKR UHFHLYHV RU NHHSV IXQGV RU
SURSHUW\ EHORQJLQJ SD\DEOH RU GHOLYHUDEOH WR WKH 666 DQG ZKR VKDOO
DSSURSULDWHWKHVDPHRUVKDOOWDNHRUPLVDSSURSULDWHRUVKDOOFRQVHQW
RUWKURXJKDEDQGRQPHQWRUQHJOLJHQFHVKDOOSHUPLWDQ\RWKHUSHUVRQWR
WDNH VXFK SURSHUW\ RU IXQGV ZKROO\ RU SDUWLDOO\ RU VKDOO RWKHUZLVH EH
JXLOW\ RI PLVDSSURSULDWLRQ RI VXFK IXQGV RU SURSHUW\ VKDOO VXIIHU WKH
SHQDOWLHV SURYLGHG LQ $UWLFOH 7ZR KXQGUHG VHYHQWHHQ RI WKH 5HYLVHG
3HQDO&RGH
K
$Q\ HPSOR\HU ZKR DIWHU GHGXFWLQJ WKH PRQWKO\ FRQWULEXWLRQV RU
ORDQDPRUWL]DWLRQVIURPKLVHPSOR\HH
VFRPSHQVDWLRQIDLOVWRUHPLWWKH
VDLG GHGXFWLRQV WR WKH 666 ZLWKLQ WKLUW\  GD\V IURP WKH GDWH WKH\
EHFDPH GXH VKDOO EH SUHVXPHG WR KDYH PLVDSSURSULDWHG VXFK
FRQWULEXWLRQV RU ORDQ DPRUWL]DWLRQV DQG VKDOO VXIIHU WKH SHQDOWLHV
SURYLGHGLQ$UWLFOH7KUHHKXQGUHGILIWHHQRIWKH5HYLVHG3HQDO&RGH
L
&ULPLQDO DFWLRQ DULVLQJ IURP D YLRODWLRQ RI WKH SURYLVLRQV RI WKLV
$FWPD\EHFRPPHQFHGE\WKH666RUWKHHPSOR\HHFRQFHUQHGHLWKHU
XQGHU WKLV $FW RU LQ DSSURSULDWH FDVHV XQGHU WKH 5HYLVHG 3HQDO &RGH
3URYLGHG7KDWVXFKFULPLQDODFWLRQPD\EHILOHGE\WKH666LQWKHFLW\
RU PXQLFLSDOLW\ ZKHUH WKH 666 RIILFH LV ORFDWHG LI WKH YLRODWLRQ ZDV
FRPPLWWHG ZLWKLQ LWV WHUULWRULDO MXULVGLFWLRQ RU LQ 0HWUR 0DQLOD DW WKH
RSWLRQRIWKH666
6(&7,21 
*RYHUQPHQW $LG  7KH HVWDEOLVKPHQW RI WKH 666
VKDOO QRW GLVTXDOLI\ WKH PHPEHUV DQG HPSOR\HUV IURP UHFHLYLQJ VXFK
JRYHUQPHQWDVVLVWDQFHILQDQFLDORURWKHUZLVHDVPD\EHSURYLGHG
DERXWEODQN





/DZV

6(&7,21 
7UDQVLWRU\ &ODXVH  $Q\ HPSOR\HU ZKR LV
GHOLQTXHQWRUKDVQRWUHPLWWHGDOOFRQWULEXWLRQVGXHDQGSD\DEOHWRWKH
666PD\ZLWKLQVL[PRQWKVIURPWKHHIIHFWLYLW\RIWKLV$FWUHPLWVDLG
FRQWULEXWLRQVRUVXEPLWDSURSRVDOWRSD\WKHVDPHLQLQVWDOOPHQWVZLWKLQ
DSHULRGRIQRWPRUHWKDQWZHOYHPRQWKVIURPWKHHIIHFWLYLW\RIWKLV
$FWZLWKRXWLQFXUULQJWKHSUHVFULEHGSHQDOW\VXEMHFWWRWKHLPSOHPHQWLQJ
UXOHV DQG UHJXODWLRQV ZKLFK WKH &RPPLVVLRQ PD\ SUHVFULEH 3URYLGHG
7KDW WKH HPSOR\HU VXEPLWV WKH FRUUHVSRQGLQJ FROOHFWLRQ OLVWV WRJHWKHU
ZLWKWKHUHPLWWDQFHRUSURSRVDOWRSD\LQLQVWDOOPHQWV3URYLGHGIXUWKHU
7KDW LQ FDVH WKH HPSOR\HU IDLOV WR UHPLW FRQWULEXWLRQV ZLWKLQ WKH VL[
PRQWK JUDFH SHULRG RU GHIDXOWV LQ WKH SD\PHQW RI DQ\ DPRUWL]DWLRQ
SURYLGHG LQ WKH DSSURYHG SURSRVDO WKH SUHVFULEHG SHQDOW\ VKDOO EH
LPSRVHGIURPWKHWLPHWKHFRQWULEXWLRQVILUVWEHFDPHGXHDVSURYLGHGLQ
6HFWLRQDKHUHRI
6(&7,21 
6HSDUDELOLW\ &ODXVH  ,I DQ\ SURYLVLRQ RI WKLV $FW LV
GHFODUHGLQYDOLGWKHRWKHUSURYLVLRQVQRWDIIHFWHGWKHUHE\VKDOOUHPDLQ
YDOLG
6(&7,21 
5HSHDOLQJ &ODXVH  $OO ODZV SURFODPDWLRQV
H[HFXWLYHRUGHUVUXOHVDQGUHJXODWLRQVRUSDUWVWKHUHRILQFRQVLVWHQWZLWK
WKLV $FW DUH KHUHE\ UHSHDOHG PRGLILHG RU DPHQGHG DFFRUGLQJO\
3URYLGHG 7KDW QR SHUVRQ VKDOO EH GHHPHG WR EH YHVWHG ZLWK DQ\
SURSHUW\ RU RWKHU ULJKW E\ YLUWXH RI WKH HQDFWPHQW RU RSHUDWLRQ RI WKLV
$FW
6(&7,21
(IIHFWLYLW\&ODXVH7KLV$FWVKDOOWDNHHIIHFWILIWHHQ
 GD\V DIWHU LWV FRPSOHWH SXEOLFDWLRQ LQ WKH 2IILFLDO *D]HWWH RU LQ DW
OHDVW WZR  QDWLRQDO QHZVSDSHUV RI JHQHUDO FLUFXODWLRQ ZKLFKHYHU
FRPHVHDUOLHU
$SSURYHG0D\
3XEOLVKHG LQ WKH 3KLOLSSLQH 'DLO\ ,QTXLUHU RQ 0D\   DQG WKH
3KLOLSSLQH 6WDU RQ 0D\   3XEOLVKHG LQ WKH 2IILFLDO *D]HWWH 9RO
1RSDJHRQ-XO\


DERXWEODQN