EX-10.4 2 ex104_creditamendment.htm EXHIBIT 10.4 ex104_creditamendment
(;+,%,7  (;(&87,21&23< 7+,5' $0(1'0(1772 6(&21'$0(1'('$1'5(67$7('&5(',7 $*5((0(17 6(&21'$0(1'0(1772$0(1'(' $1'5(67$7('6(&85,7<$*5((0(17 $1'),567$0(1'0(1772$0(1'('$1'5(67$7(' *8$5$17< 7KLV 7KLUG $PHQGPHQW WR 6HFRQG $PHQGHG DQG 5HVWDWHG &UHGLW $JUHHPHQW 6HFRQG $PHQGPHQWWR$PHQGHGDQG5HVWDWHG6HFXULW\$JUHHPHQWDQG)LUVW$PHQGPHQWWR$PHQGHG DQG5HVWDWHG*XDUDQW\ WKLV³7KLUG$PHQGPHQW´  LVPDGHDVRI$XJXVW WR D WKDWFHUWDLQ6HFRQG$PHQGHGDQG5HVWDWHG&UHGLW$JUHHPHQW GDWHGDVRI2FWREHU DVDPHQGHGE\WKH)LUVW$PHQGPHQWWR6HFRQG$PHQGHGDQG5HVWDWHG&UHGLW$JUHHPHQW GDWHGDVRI'HFHPEHU DQGE\WKH6HFRQG$PHQGPHQWWR6HFRQG$PHQGHGDQG5HVWDWHG &UHGLW$JUHHPHQWDQG$PHQGPHQWWR$PHQGHGDQG5HVWDWHG6HFXULW\$JUHHPHQWGDWHGDVRI $SULO   WRJHWKHU ZLWK DQ\ PRGLILFDWLRQV RU DPHQGPHQWV WKHUHWR FROOHFWLYHO\ WKH ³$JUHHPHQW´ E\DQGDPRQJ 63(&,$/7<5(7$,/(56,1&D7H[DVFRUSRUDWLRQ ³%RUURZHU´  67$*(6725(6,1&D1HYDGDFRUSRUDWLRQ ³3DUHQW´  :(//6)$5*2%$1.1$7,21$/$662&,$7,21DVWKH$GPLQLVWUDWLYH$JHQW DQG&ROODWHUDO$JHQWIRUWKH/HQGHUV FROOHFWLYHO\WKH³$JHQWV´  DQG 7KH/(1'(56 ZKRDUHSDUWLHVWRWKH$JUHHPHQW E WKDWFHUWDLQ$PHQGHGDQG5HVWDWHG6HFXULW\$JUHHPHQWGDWHGDVRI-XQHDV FRQILUPHGDQGDPHQGHGDVRI2FWREHU FRQILUPHGDQGUDWLILHGDVRI'HFHPEHU DQGFRQILUPHGDQGDPHQGHGDVRI$SULOE\DQGDPRQJWKH*UDQWRUVWKHUHXQGHUDQG:HOOV )DUJR%DQN1DWLRQDO$VVRFLDWLRQDV1HZ&ROODWHUDO$JHQW WKH³6HFXULW\$JUHHPHQW´ DQG F WKDWFHUWDLQ$PHQGHGDQG5HVWDWHG*XDUDQW\GDWHGDVRI-XQHDVFRQILUPHG DQGDPHQGHGDVRI2FWREHUE\DQGDPRQJ%RUURZHUWKH)DFLOLW\*XDUDQWRUVWKHUHXQGHU DQG:HOOV)DUJR%DQN1DWLRQDO$VVRFLDWLRQDV1HZ&ROODWHUDO$JHQW WKH³*XDUDQW\´  %$&.*5281' 7KH/RDQ3DUWLHVKDYH UHTXHVWHG WKDWWKH$JHQWVDQGWKH/HQGHUVDPHQGFHUWDLQSURYLVLRQV RIWKH$JUHHPHQW LQFOXGLQJWRSURYLGHIRUWKHPDNLQJRIDWHUPORDQLQIDYRURI%RUURZHULQWKH DPRXQWRI RQWKH7KLUG$PHQGPHQW(IIHFWLYH'DWHDQGLQIXUWKHUDQFHWKHUHRIWKH $JHQWV DQG WKH /HQGHUV KDYH DJUHHG KHUHE\ WR DPHQG HDFK RI WKH $JUHHPHQW WKH 6HFXULW\ $JUHHPHQWDQGWKH*XDUDQW\ VXEMHFWWRWKHWHUPVDQGFRQGLWLRQVVHWIRUWKKHUHLQ$FFRUGLQJO\ LWLVKHUHE\DJUHHGDVIROORZV  'HILQLWLRQV$OOFDSLWDOL]HGWHUPVXVHGLQWKLV7KLUG$PHQGPHQWDQGQRWRWKHUZLVHGHILQHG VKDOOKDYHWKHVDPHPHDQLQJVKHUHLQDVLQWKH$JUHHPHQW 


 
 $PHQGPHQWVWR&UHGLW$JUHHPHQW 6XEMHFWWRWKHVDWLVIDFWLRQRIWKHFRQGLWLRQVSUHFHGHQW VSHFLILHGLQ6HFWLRQ EHORZWKH$JUHHPHQWVKDOOEHDPHQGHGDVIROORZV D &RPSRVLWH&UHGLW$JUHHPHQW %\GHOHWLQJWKHVWULFNHQWH[W LQGLFDWHGWH[WXDOO\LQ WKHVDPHPDQQHUDVWKHIROORZLQJH[DPSOHVWULFNHQWH[W DQGE\DGGLQJWKHGRXEOH XQGHUOLQHGWH[W LQGLFDWHGWH[WXDOO\LQWKHVDPHPDQQHUDVWKHIROORZLQJH[DPSOH GRXEOHXQGHUOLQHGWH[W DVUHIOHFWHGLQWKHPRGLILFDWLRQVLGHQWLILHGLQWKHGRFXPHQW DQQH[HGKHUHWRDV$QQH[$ DWWDFKHGWRWKLV7KLUG$PHQGPHQW E 8SGDWHG DQG $GGLWLRQDO ([KLELWV %\ L  DPHQGLQJ DQG UHVWDWLQJ HDFK RI WKH H[LVWLQJ([KLELWVWRWKH$JUHHPHQWLQLWV HQWLUHW\ DQGE\ VXEVWLWXWLQJWKHUHIRUWKH UHVSHFWLYH IRUPV RI ([KLELW DQQH[HG KHUHWR LQ $QQH[ % DWWDFKHG WR WKLV 7KLUG $PHQGPHQW DQG LL DGGLQJD QHZ ([KLELW% )RUPRI7HUP1RWH LQWKHIRUP DQQH[HGKHUHWRLQVXFK $QQH[% F 8SGDWHG6FKHGXOHV %\DPHQGLQJDQGUHVWDWLQJHDFKRIWKHH[LVWLQJ6FKHGXOHVWR WKH$JUHHPHQWLQLWVHQWLUHW\DQGE\VXEVWLWXWLQJWKHUHIRUWKHUHVSHFWLYHIRUPV RI 6FKHGXOHDQQH[HGKHUHWRLQ$QQH[& DWWDFKHGWRWKLV7KLUG$PHQGPHQW  $PHQGPHQWV WR 6HFXULW\ $JUHHPHQW 6XEMHFW WR WKH VDWLVIDFWLRQ RI WKH FRQGLWLRQV SUHFHGHQW VSHFLILHG LQ 6HFWLRQ  EHORZ WKH 6HFXULW\ $JUHHPHQW VKDOO EH DPHQGHG DV IROORZV D %\DPHQGLQJDQGUHVWDWLQJWKHGHILQLWLRQRI³&ROODWHUDO´VHWIRUWKLQ6HFWLRQ WKHUHRIWRUHDGLQLWVHQWLUHW\DVVHWIRUWKRQ5LGHU KHUHWR E %\ DGGLQJ WR 6HFWLRQ  WKHUHRI WKH IROORZLQJ QHZ GHILQLWLRQ RI ³([FOXGHG 3URSHUW\´LQDSSOLFDEOHDOSKDEHWLFDORUGHU ³³([FOXGHG3URSHUW\´VKDOOPHDQWKHIROORZLQJ L DQ\OLFHQVHSHUPLWRUOHDVHKHOGE\DQ\*UDQWRU L LIWKH JUDQW RI VXFK D VHFXULW\ LQWHUHVW VKDOO FRQVWLWXWH RU UHVXOW LQ $ WKH DEDQGRQPHQWLQYDOLGDWLRQRUXQHQIRUFHDELOLW\RIDQ\ULJKWWLWOHRULQWHUHVW RIVXFK*UDQWRUWKHUHLQRUUHVXOWLQVXFK*UDQWRU¶VORVVRIXVHRIVXFKDVVHW RU % DEUHDFKRUWHUPLQDWLRQSXUVXDQWWRWKHWHUPVRIRUDGHIDXOWXQGHU DQ\ VXFK OHDVH FRQWUDFW SURSHUW\ ULJKWV RU DJUHHPHQW RWKHU WKDQWRWKH H[WHQWWKDWDQ\VXFKWHUPZRXOGEHUHQGHUHGLQHIIHFWLYHSXUVXDQWWR6HFWLRQV RU RIWKH8&& RUDQ\VXFFHVVRUSURYLVLRQRU SURYLVLRQV  RI DQ\ UHOHYDQW MXULVGLFWLRQ RU DQ\ RWKHU DSSOLFDEOH /DZ LQFOXGLQJ DQ\ 'HEWRU 5HOLHI /DZ  RU SULQFLSOHV RI HTXLW\  RU LL WRWKH H[WHQW WKDW $SSOLFDEOH /DZ SURKLELWV WKH FUHDWLRQ RI D VHFXULW\ LQWHUHVW WKHUHLQRUWKHUHRQ RWKHUWKDQWRWKHH[WHQWWKDWDQ\VXFKWHUPZRXOGEH UHQGHUHGLQHIIHFWLYHSXUVXDQWWR6HFWLRQVRURI WKH 8&& RU DQ\ VXFFHVVRU SURYLVLRQ RU SURYLVLRQV  RI DQ\ UHOHYDQW MXULVGLFWLRQRUDQ\RWKHUDSSOLFDEOH/DZ LQFOXGLQJDQ\'HEWRU5HOLHI/DZ  RUSULQFLSOHVRIHTXLW\ DQG 


 
LL DQ\ ,QWHOOHFWXDO 3URSHUW\ FRQVLVWLQJ RI LQWHQWWRXVH WUDGHPDUNDSSOLFDWLRQVIRUZKLFKWKHFUHDWLRQE\D*UDQWRURIDVHFXULW\ LQWHUHVW WKHUHLQ LV SURKLELWHG ZLWKRXW WKH FRQVHQW RI WKLUG SDUW\ RU E\ $SSOLFDEOH/DZ SURYLGHG KRZHYHUWKDWLQHDFKFDVHGHVFULEHGLQFODXVHV D DQG E DERYH VXFKSURSHUW\VKDOOFRQVWLWXWH³([FOXGHG3URSHUW\´RQO\WRWKHH[WHQWDQG IRUVRORQJDVVXFKOLFHQVHSHUPLWOHDVHRU $SSOLFDEOH/DZYDOLGO\SURKLELWV WKHFUHDWLRQRID/LHQRQVXFKSURSHUW\LQIDYRURIWKH&ROODWHUDO$JHQWDQG XSRQ WKH WHUPLQDWLRQ RI VXFK SURKLELWLRQ KRZVRHYHU RFFXUULQJ VXFK SURSHUW\VKDOO FHDVHWRFRQVWLWXWH³([FOXGHG3URSHUW\´SURYLGHG IXUWKHU WKDW³([FOXGHG3URSHUW\´VKDOOQRW LQFOXGHWKHULJKWWRUHFHLYHDQ\SURFHHGV DULVLQJWKHUHIURPWKHULJKWWRUHFHLYHDQ\SD\PHQWRIPRQH\ LQFOXGLQJ ZLWKRXWOLPLWDWLRQ*HQHUDO,QWDQJLEOHV RUDQ\RWKHUULJKWVUHIHUUHGWRLQ 6HFWLRQV  I   D  RU  D  RI WKH 8&& RU DQ\ 3URFHHGV VXEVWLWXWLRQV RU UHSODFHPHQWV RI DQ\ ([FOXGHG 3URSHUW\ XQOHVV VXFK 3URFHHGV VXEVWLWXWLRQV RU UHSODFHPHQWV ZRXOG RWKHUZLVH FRQVWLWXWH ([FOXGHG3URSHUW\ ´ F %\DGGLQJ WKHIROORZLQJVHQWHQFHDWWKHHQGRI6HFWLRQ WKHUHRI ³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´ G %\DPHQGLQJDQGUHVWDWLQJ$QQH[ 3HUIHFWLRQ&HUWLILFDWH WKHUHWRLQLWVHQWLUHW\ DQG E\ VXEVWLWXWLQJ WKHUHIRU WKH IRUP RI $QQH[  DQQH[HG KHUHWR LQ $QQH[ ' DWWDFKHGWRWKLV7KLUG$PHQGPHQW  $PHQGPHQWWR*XDUDQW\ 6XEMHFWWRWKHVDWLVIDFWLRQRIWKHFRQGLWLRQVSUHFHGHQWVSHFLILHG LQ6HFWLRQ EHORZWKH*XDUDQW\ VKDOOEHDPHQGHGWRDGGWKHIROORZLQJFODXVH F DWWKH HQGRI6HFWLRQWKHUHRI ³ F 1RWZLWKVWDQGLQJWKHIRUHJRLQJZLWKUHVSHFWWRDQ\)DFLOLW\*XDUDQWRU WKH WHUP ³*XDUDQWHHG 2EOLJDWLRQV´ VKDOO H[FOXGH DQ\ ([FOXGHG 6ZDS 2EOLJDWLRQVZLWKUHVSHFWWRVXFK)DFLOLW\*XDUDQWRU´ 


 
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³PDWHULDOLW\´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¶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¶WKHQFXUUHQWSUDFWLFHV I $OOILOLQJVUHFRUGDWLRQVDQGVHDUFKHVUHDVRQDEO\UHTXHVWHGE\WKH&ROODWHUDO$JHQW WREHPDGHLQFRQQHFWLRQZLWKWKHOLHQVDQGVHFXULW\LQWHUHVWVLQWKH/RDQ3DUWLHV¶ SURSHUWLHVVKDOOKDYHEHHQGXO\PDGH J 7KH &ROODWHUDO $JHQW VKDOO KDYH UHFHLYHG DQG EH UHDVRQDEO\ VDWLVILHG ZLWK HYLGHQFHRIWKH/RDQ3DUWLHV¶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³NQRZ\RXUFXVWRPHU´DQGRWKHU FRPSOLDQFHGLOLJHQFHDVPD\EHUHDVRQDEO\UHTXHVWHGE\DQ\$JHQWRUDQ\/HQGHU O 7KHUHVKDOOEHQRPDWHULDOPLVVWDWHPHQWVRIIDFWLQWKHZULWWHQPDWHULDOVIXUQLVKHG E\ WKH /RDQ 3DUWLHV WR WKH $JHQWV RU WKH /HQGHUV SULRU WR FORVLQJ RI WKLV 7KLUG $PHQGPHQW RU DIWHU JLYLQJ HIIHFW WR WKH DPHQGPHQWV WR WKH 6FKHGXOHV PDGH 


 
SXUVXDQWWRWKLV7KLUG$PHQGPHQWLQWKHUHSUHVHQWDWLRQVRUZDUUDQWLHVRIWKH/RDQ 3DUWLHVPDGHLQWKH$JUHHPHQW P $OOIHHVSD\DEOHWRWKH$JHQWV DQGWKH/HQGHUVUHTXLUHGWREHSDLGRQRUEHIRUHWKH 7KLUG$PHQGPHQW(IIHFWLYH'DWH VKDOOKDYHEHHQSDLG Q 7KH$JHQWV VKDOOKDYHEHHQUHLPEXUVHGE\WKH/RDQ3DUWLHVIRUDOOUHDVRQDEOHFRVWV DQGH[SHQVHVRIWKH$JHQWV LQFOXGLQJZLWKRXWOLPLWDWLRQUHDVRQDEOHDWWRUQH\V¶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


 
>6,*1$785(3$*(6)2//2:@ 


 
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


 
$*(17 :(//6 )$5*2 %$1. 1$7,21$/ $662&,$7,21 DV $GPLQLVWUDWLYH $JHQW &ROODWHUDO$JHQW7HUP/RDQ$JHQW6ZLQJOLQH /HQGHUDQG,VVXLQJ%DQN %\ V-DL$OH[DQGHU 1DPH -DL$OH[DQGHU 7LWOH 'LUHFWRU /(1'(56 :(//6 )$5*2 %$1. 1$7,21$/ $662&,$7,21 %\ V-DL$OH[DQGHU 1DPH -DL$OH[DQGHU 7LWOH 'LUHFWRU 6LJQDWXUH3DJHWR7KLUG$PHQGPHQWWR6HFRQG$PHQGHGDQG5HVWDWHG&UHGLW$JUHHPHQW 6HFRQG$PHQGPHQWWR$PHQGHGDQG5HVWDWHG6HFXULW\$JUHHPHQW DQG)LUVW$PHQGPHQWWR$PHQGHGDQG5HVWDWHG*XDUDQW\


 
%$1.2)$0(5,&$1$ %\ V-RVHSK%HFNHU 1DPH -RVHSK%HFNHU 7LWOH 0DQDJLQJ'LUHFWRU 6LJQDWXUH3DJHWR7KLUG$PHQGPHQWWR6HFRQG$PHQGHGDQG5HVWDWHG&UHGLW$JUHHPHQW 6HFRQG$PHQGPHQWWR$PHQGHGDQG5HVWDWHG6HFXULW\$JUHHPHQW DQG)LUVW$PHQGPHQWWR$PHQGHGDQG5HVWDWHG*XDUDQW\


 
-3025*$1&+$6(%$1.1$ %\ V%ODNHO\(QJHO 1DPH %ODNHO\(QJHO 7LWOH 9LFH3UHVLGHQW 6LJQDWXUH3DJHWR7KLUG$PHQGPHQWWR6HFRQG$PHQGHGDQG5HVWDWHG&UHGLW$JUHHPHQW 6HFRQG$PHQGPHQWWR$PHQGHGDQG5HVWDWHG6HFXULW\$JUHHPHQW DQG)LUVW$PHQGPHQWWR$PHQGHGDQG5HVWDWHG*XDUDQW\


 
5(*,216%$1. %\ V&RQQLH5XDQ 1DPH &RQQLH5XDQ 7LWOH 'LUHFWRU 6LJQDWXUH3DJHWR7KLUG$PHQGPHQWWR6HFRQG$PHQGHGDQG5HVWDWHG&UHGLW$JUHHPHQW 6HFRQG$PHQGPHQWWR$PHQGHGDQG5HVWDWHG6HFXULW\$JUHHPHQW DQG)LUVW$PHQGPHQWWR$PHQGHGDQG5HVWDWHG*XDUDQW\


 
68175867%$1. %\ V3DYR+UNDF 1DPH 3DYR+UNDF 7LWOH 9LFH3UHVLGHQW 6LJQDWXUH3DJHWR7KLUG$PHQGPHQWWR6HFRQG$PHQGHGDQG5HVWDWHG&UHGLW$JUHHPHQW 6HFRQG$PHQGPHQWWR$PHQGHGDQG5HVWDWHG6HFXULW\$JUHHPHQW DQG)LUVW$PHQGPHQWWR$PHQGHGDQG5HVWDWHG*XDUDQW\


 
$11(;$ &RPSRVLWH&UHGLW$JUHHPHQW >VHHDWWDFKHG@


 
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¶&UHGLW'HFLVLRQV  6(&7,21 5HLPEXUVHPHQWDQG,QGHPQLILFDWLRQ  6(&7,21 5LJKWVRI$JHQWV  6(&7,21 1RWLFHRI7UDQVIHU  6(&7,21 6XFFHVVRU$JHQW  6(&7,21 5HSRUWVDQG)LQDQFLDO6WDWHPHQWV  6(&7,21 'HOLQTXHQW/HQGHU  6(&7,21 $UUDQJHUV'RFXPHQWDWLRQ$JHQWDQG&R6\QGLFDWLRQ$JHQWV  6(&7,21 $JHQWIRU3HUIHFWLRQ  6(&7,21 5HODWLRQ$PRQJWKH/HQGHUV  6(&7,21 &ROODWHUDODQG*XDUDQW\0DWWHUV  6(&7,21 3URYLGHUV  Y


 
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


 
(;+,%,76 $ )RUPRI$VVLJQPHQWDQG$FFHSWDQFH % )RUPRI5HYROYLQJ1RWH % )RUPRI6ZLQJOLQH1RWH % )RUPRI7HUP1RWH & 2SLQLRQRI&RXQVHOWR/RDQ3DUWLHV ' )RUPRI&RPSOLDQFH&HUWLILFDWH ( )RUPRI%RUURZLQJ%DVH&HUWLILFDWH YLL


 
6&+('8/(6  /HQGHUVDQG&RPPLWPHQWV  D ([LVWLQJ/HWWHUVRI&UHGLW  )LVFDO3HULRGV0RQWKV  D  ''$V  E  &UHGLW&DUG$UUDQJHPHQWV  F  %ORFNHG$FFRXQWV  I  'LVEXUVHPHQW$FFRXQWV  &KDQJH6LQFH3ULRU)LVFDO<HDU(QG  F L 7LWOHWR3URSHUWLHV5HDO(VWDWH2ZQHG  F LL /HDVHG3URSHUWLHV  'LVFORVHG0DWWHUV  6XEVLGLDULHV  ,QVXUDQFH  L )LQDQFLDO5HSRUWLQJ5HTXLUHPHQWV  ,QGHEWHGQHVV  /LHQV  ,QYHVWPHQWV YLLL


 
6(&21'$0(1'('$1'5(67$7('&5(',7$*5((0(17GDWHGDVRI2FWREHU DVDPHQGHGDVRI$XJXVWDPRQJ 63(&,$/7<5(7$,/(56,1&D7H[DVFRUSRUDWLRQKDYLQJLWVSULQFLSDOSODFHRI EXVLQHVVDW0DLQ6WUHHW:HVW/RRS6RXWK+RXVWRQ7H[DV WKH ³%RUURZHU´ DQG 67$*(6725(6,1&D1HYDGDFRUSRUDWLRQKDYLQJLWVSULQFLSDOSODFHRIEXVLQHVVDW 0DLQ6WUHHW:HVW/RRS6RXWK+RXVWRQ7H[DV WKH³)DFLOLW\ *XDUDQWRU´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³([LVWLQJ&UHGLW$JUHHPHQW´ E\DPRQJRWKHUVWKH%RUURZHUWKH)DFLOLW\ *XDUDQWRUVSDUW\WKHUHWRWKH³/HQGHUV´DVGHILQHGWKHUHLQ%DQNRI$PHULFD1$DV ³$GPLQLVWUDWLYH$JHQW´DQG³&ROODWHUDO$JHQW´:HOOV)DUJR&DSLWDO)LQDQFH//&DV ³'RFXPHQWDWLRQ$JHQW´DQG-30RUJDQ&KDVH%DQN1$DQG5HJLRQV%DQNDV ³&R6\QGLFDWLRQ$JHQWV´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³$FFHOHUDWHG%RUURZLQJ%DVH'HOLYHU\(YHQW´PHDQVHLWKHU L WKHRFFXUUHQFHDQG FRQWLQXDQFHRIDQ\(YHQWRI'HIDXOWRU LL WKHIDLOXUHRIWKH%RUURZHUWRPDLQWDLQ([FHVV $YDLODELOLW\DWOHDVWHTXDOWRWZHOYHDQGRQHKDOISHUFHQW  RIWKH$GMXVWHG&RPELQHG /RDQ&DS)RUSXUSRVHVRIWKLV$JUHHPHQWWKHRFFXUUHQFHRIDQ$FFHOHUDWHG%RUURZLQJ%DVH 'HOLYHU\(YHQWVKDOOEHGHHPHGFRQWLQXLQJ L VRORQJDVVXFK(YHQWRI'HIDXOWLVFRQWLQXLQJ DQGRU LL LIWKH$FFHOHUDWHG%RUURZLQJ%DVH'HOLYHU\(YHQWDULVHVDVDUHVXOWRIWKH%RUURZHU¶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³$&+´VKDOOPHDQDXWRPDWHGFOHDULQJKRXVHWUDQVIHUV ³$FFRPPRGDWLRQ3D\PHQW´KDVWKHPHDQLQJSURYLGHGWKHUHIRULQ6HFWLRQ ³$FFRXQW´VKDOOPHDQ³DFFRXQWV´DVGHILQHGLQWKH8&&DQGDOVRDOODFFRXQWVDFFRXQWV UHFHLYDEOHUHFHLYDEOHVDQGULJKWVWRSD\PHQW ZKHWKHURUQRWHDUQHGE\SHUIRUPDQFH IRU SURSHUW\WKDWKDVEHHQRULVWREHVROGOHDVHGOLFHQVHGDVVLJQHGRURWKHUZLVHGLVSRVHGRI VHUYLFHVUHQGHUHGRUWREHUHQGHUHGDSROLF\RILQVXUDQFHLVVXHGRUWREHLVVXHGDVHFRQGDU\ REOLJDWLRQLQFXUUHGRUWREHLQFXUUHGDULVLQJRXWRIWKHXVHRIDFUHGLWRUFKDUJHFDUGRU LQIRUPDWLRQFRQWDLQHGRQRUXVHGZLWKWKDWFDUG ³$GGLWLRQDO5HYROYLQJ/RDQ&RPPLWPHQW/HQGHU´KDVWKHPHDQLQJSURYLGHGWKHUHIRULQ 6HFWLRQ D  ³$GGLWLRQDO7HUP/RDQ´KDVWKHPHDQLQJSURYLGHGWKHUHIRULQ6HFWLRQ$ D  ³$GGLWLRQDO7HUP/RDQ&RPPLWPHQW/HQGHU´KDVWKHPHDQLQJSURYLGHGWKHUHIRULQ 6HFWLRQ$ D  


 
³$GGLWLRQDO7HUP/RDQ&RPPLWPHQW5HTXLUHPHQWV´PHDQVZLWKUHVSHFWWRDQ\UHTXHVW IRUDQ$GGLWLRQDO7HUP/RDQ&RPPLWPHQWPDGHSXUVXDQWWR6HFWLRQ$QR'HIDXOWRU(YHQW RI'HIDXOWWKHQH[LVWV ³$GMXVWHG/,%25DWH´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³$GMXVWHG&RPELQHG/RDQ&DS´PHDQVDWDQ\WLPHRIGHWHUPLQDWLRQWKHVXPRI L WKH 5HYROYLQJ/RDQ&DS FDOFXODWHGZLWKRXWVXEWUDFWLQJWKH7HUP/RDQ5HVHUYHIURPWKH5HYROYLQJ /RDQ%RUURZLQJ%DVH SOXV LL WKHOHVVHURI [ WKHRXWVWDQGLQJDPRXQWRIWKH7HUP/RDQRU \  WKH7HUP/RDQ%RUURZLQJ%DVH ³$GMXVWHG7RWDO5HYROYLQJ/RDQ&RPPLWPHQWV´VKDOOPHDQDWDQ\WLPHWKHVXPRI L WKHDJJUHJDWHRIWKH2UGLQDU\&RPPLWPHQWV DVVHWIRUWKRQ6FKHGXOH IRUHDFK5HYROYLQJ /RDQ/HQGHUVXEMHFWWRSRVVLEOHLQFUHDVHSXUVXDQWWR6HFWLRQSOXV LL WKH6HDVRQDO &RPPLWPHQW,QFUHDVHG,QFUHDVH8WLOL]HG$PRXQW ³$GMXVWPHQW'DWH´PHDQV L WKHGD\WKDWLVQLQHW\  GD\VIROORZLQJWKH(IIHFWLYH 'DWH1RYHPEHUDQG LL WKHUHDIWHUWKHILUVWGD\RIHDFKILVFDOTXDUWHURIWKH%RUURZHU FRPPHQFLQJ-DQXDU\ ³$GPLQLVWUDWLYH$JHQW´PHDQV:HOOV)DUJRLQLWVFDSDFLW\DVDGPLQLVWUDWLYHDJHQWIRUWKH &UHGLW3DUWLHVKHUHXQGHU ³$IILOLDWH´PHDQVZLWKUHVSHFWWRDVSHFLILHG3HUVRQDQRWKHU3HUVRQWKDWGLUHFWO\RU LQGLUHFWO\WKURXJKRQHRUPRUHLQWHUPHGLDULHV&RQWUROVRULV&RQWUROOHGE\RULVXQGHUFRPPRQ &RQWUROZLWKWKH3HUVRQVSHFLILHGRULVDGLUHFWRURURIILFHURIVXFK3HUVRQ ³$JHQWV´VKDOOPHDQFROOHFWLYHO\WKH$GPLQLVWUDWLYH$JHQWDQGWKH&ROODWHUDO$JHQW DQGWKH7HUP/RDQ$JHQW 


 
³$JUHHPHQW´PHDQVWKLV6HFRQG$PHQGHGDQG5HVWDWHG&UHGLW$JUHHPHQWDVPRGLILHG DPHQGHGVXSSOHPHQWHGRUUHVWDWHGDQGLQHIIHFWIURPWLPHWRWLPH ³$JUHHPHQW9DOXH´PHDQVIRUHDFK+HGJLQJ$JUHHPHQWRQDQ\GDWHRIGHWHUPLQDWLRQ DQDPRXQWGHWHUPLQHGE\WKH$GPLQLVWUDWLYH$JHQWHTXDOWR D LQWKHFDVHRID+HGJLQJ$JUHHPHQWGRFXPHQWHGSXUVXDQWWRWKH0DVWHU $JUHHPHQW 0XOWLFXUUHQF\&URVV%RUGHU SXEOLVKHGE\WKH,QWHUQDWLRQDO6ZDSDQG 'HULYDWLYHV$VVRFLDWLRQ,QF WKH³0DVWHU$JUHHPHQW´ WKHDPRXQWLIDQ\WKDWZRXOG EHSD\DEOHE\DQ\/RDQ3DUW\RUDQ\RILWV6XEVLGLDULHVWRLWVFRXQWHUSDUW\WRVXFK +HGJLQJ$JUHHPHQWDVLI L VXFK+HGJLQJ$JUHHPHQWZDVEHLQJWHUPLQDWHGHDUO\RQ VXFKGDWHRIGHWHUPLQDWLRQ LL VXFK/RDQ3DUW\RU6XEVLGLDU\ZDVWKHVROH³$IIHFWHG 3DUW\´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³$JJUHJDWH5HYROYLQJ/RDQ&RPPLWPHQWV´PHDQVWKH5HYROYLQJ/RDQ&RPPLWPHQWVRI DOOWKH5HYROYLQJ/RDQ/HQGHUVDVUHGXFHGE\WKH%RUURZHUSXUVXDQWWR6HFWLRQRU LQFUHDVHGSXUVXDQWWR6HFWLRQ$VRIWKH7KLUG$PHQGPHQW(IIHFWLYH'DWHWKH$JJUHJDWH 5HYROYLQJ/RDQ&RPPLWPHQWVDUHLQWKHVXPRI ³$OORFDEOH$PRXQW´KDVWKHPHDQLQJSURYLGHGWKHUHIRULQ6HFWLRQ ³$QWLFRUUXSWLRQ&RUUXSWLRQ/DZV´PHDQVDOOODZVUXOHVWKH)&3$WKH8.%ULEHU\$FW RIDVDPHQGHGDQGDOORWKHUDSSOLFDEOHODZVDQGUHJXODWLRQVRIDQ\MXULVGLFWLRQDSSOLFDEOH WR3DUHQWRULWV6XEVLGLDULHVRURUGLQDQFHVFRQFHUQLQJRUUHODWLQJWREULEHU\PRQH\ODXQGHULQJRU FRUUXSWLRQLQFOXGLQJWKH8QLWHG6WDWHV)RUHLJQ&RUUXSW3UDFWLFHV$FWRILQDQ\MXULVGLFWLRQ LQZKLFKDQ\/RDQ3DUW\RUDQ\RILWV6XEVLGLDULHVRU$IILOLDWHVLVORFDWHGRULVGRLQJEXVLQHVV ³$QWL0RQH\/DXQGHULQJ/DZV´PHDQVWKHDSSOLFDEOHODZVRUUHJXODWLRQVLQDQ\ MXULVGLFWLRQLQZKLFKDQ\/RDQ3DUW\RUDQ\RILWV6XEVLGLDULHVRU$IILOLDWHVLVORFDWHGRULVGRLQJ 


 
EXVLQHVVWKDWUHODWHVWRPRQH\ODXQGHULQJDQ\SUHGLFDWHFULPHWRPRQH\ODXQGHULQJRUDQ\ ILQDQFLDOUHFRUGNHHSLQJDQGUHSRUWLQJUHTXLUHPHQWVUHODWHGWKHUHWR ³$SSOLFDEOH/DZ´PHDQVDVWRDQ\3HUVRQ L DOOODZVVWDWXWHVUXOHVUHJXODWLRQV RUGHUVRURWKHUUHTXLUHPHQWVKDYLQJWKHIRUFHRIODZDQG LL DOOFRXUWRUGHUVDQGLQMXQFWLRQV DQGRUVLPLODUUXOLQJVLQHDFKLQVWDQFH L DQG LL RIRUE\DQ\*RYHUQPHQWDO$XWKRULW\RU FRXUWRUWULEXQDOZKLFKKDVMXULVGLFWLRQRYHUVXFK3HUVRQRUDQ\SURSHUW\RIVXFK3HUVRQRURI DQ\RWKHU3HUVRQIRUZKRVHFRQGXFWVXFK3HUVRQZRXOGEHUHVSRQVLEOH ³$SSOLFDEOH0DUJLQ´PHDQV D )URPDQGDIWHUWKH7KLUG$PHQGPHQW(IIHFWLYH'DWHXQWLOWKHILUVW$GMXVWPHQW 'DWHWKHSHUFHQWDJHVVHWIRUWKLQ/HYHO,RIWKHSULFLQJJULGEHORZDQG E )URPDQGDIWHUWKHILUVW$GMXVWPHQW'DWHDQGRQHDFK$GMXVWPHQW'DWHWKHUHDIWHU WKH$SSOLFDEOH0DUJLQVKDOOEHGHWHUPLQHGIURPWKHIROORZLQJSULFLQJJULGEDVHGXSRQWKH $YHUDJH'DLO\([FHVV$YDLODELOLW\IRUWKHILVFDOTXDUWHURIWKH%RUURZHUHQGHGLPPHGLDWHO\ SUHFHGLQJVXFK$GMXVWPHQW'DWHSURYLGHGKRZHYHUWKDWXQWLOWKHILUVW$GMXVWPHQW'DWHWKH $SSOLFDEOH0DUJLQVKDOOQRWEHHVWDEOLVKHGDW/HYHO,, HYHQLI$YHUDJH'DLO\([FHVV $YDLODELOLW\IRU/HYHO,,KDVEHHQPHW SURYLGHGKRZHYHUWKDWQRWZLWKVWDQGLQJDQ\WKLQJWRWKH FRQWUDU\VHWIRUWKKHUHLQXSRQWKHRFFXUUHQFHDQGGXULQJWKHFRQWLQXDQFHRIDQ(YHQWRI'HIDXOW WKH$GPLQLVWUDWLYH$JHQWPD\DQGDWWKHGLUHFWLRQRIWKH5HTXLUHG/HQGHUVVKDOOLPPHGLDWHO\ LQFUHDVHWKH$SSOLFDEOH0DUJLQWRWKDWVHWIRUWKLQ/HYHO, HYHQLIWKH$YHUDJH'DLO\([FHVV $YDLODELOLW\UHTXLUHPHQWVIRUDGLIIHUHQW/HYHOKDYHEHHQPHW DQGLQWHUHVWVKDOOEHGHWHUPLQHGLQ WKHPDQQHUVHWIRUWKLQ6HFWLRQSURYLGHGIXUWKHULIDQ\%RUURZLQJ%DVH&HUWLILFDWHVDUHDW DQ\WLPHUHVWDWHGRURWKHUZLVHUHYLVHG LQFOXGLQJDVDUHVXOWRIDQDXGLW RULIWKHLQIRUPDWLRQVHW IRUWKLQDQ\%RUURZLQJ%DVH&HUWLILFDWHVRWKHUZLVHSURYHVWREHIDOVHRULQFRUUHFWVXFKWKDWWKH $SSOLFDEOH0DUJLQZRXOGKDYHEHHQKLJKHUWKDQZDVRWKHUZLVHLQHIIHFWGXULQJDQ\SHULRG ZLWKRXWFRQVWLWXWLQJDZDLYHURIDQ\'HIDXOWRU(YHQWRI'HIDXOWDULVLQJDVDUHVXOWWKHUHRI LQWHUHVWGXHXQGHUWKLV$JUHHPHQWVKDOOEHLPPHGLDWHO\UHFDOFXODWHGDWVXFKKLJKHUUDWHIRUDQ\ DSSOLFDEOHSHULRGVDQGVKDOOEHGXHDQGSD\DEOHRQGHPDQG $YHUDJH'DLO\([FHVV /HYHO $YDLODELOLW\&ULWHULD 3ULPH5DWH/RDQV /,%2/RDQV , /HVVWKDQRIWKH5HYROYLQJ   /RDQ&DS ,, (TXDOWRRUJUHDWHUWKDQRI   WKH5HYROYLQJ/RDQ&DS ³$SSUDLVDO3HUFHQWDJH´VKDOOPHDQ L GXULQJDOOWLPHVRWKHUWKDQWKHSHULRGIURP-XQH WKURXJK6HSWHPEHURIHDFK\HDUDQG LL GXULQJWKHSHULRGIURP-XQHWKURXJK 6HSWHPEHURIHDFK\HDU ³$SSUDLVHG9DOXH´PHDQVWKHQHWDSSUDLVHGOLTXLGDWLRQYDOXHRIWKH%RUURZHU¶V(OLJLEOH ,QYHQWRU\DVVHWIRUWKLQWKH%RUURZHU¶VLQYHQWRU\ERRNVDQGUHFRUGVDVGHWHUPLQHGIURPWLPHWR 


 
WLPHE\DQLQGHSHQGHQWDSSUDLVHUVDWLVIDFWRU\WRWKH$GPLQLVWUDWLYH$JHQWDQGWKH7HUP/RDQ $JHQW ³$SSURYHG)XQG´PHDQVDQ\)XQGWKDWLVDGPLQLVWHUHGRUPDQDJHGE\ D D/HQGHU E DQ$IILOLDWHRID/HQGHU F DQHQWLW\RUDQ$IILOLDWHRIDQHQWLW\WKDWDGPLQLVWHUVRUPDQDJHVD /HQGHURU G WKHVDPHLQYHVWPHQWDGYLVRURUDQDGYLVRUXQGHUFRPPRQFRQWUROZLWKVXFK /HQGHU$IILOLDWHRUDGYLVRUDVDSSOLFDEOH ³$UUDQJHUV´PHDQV:HOOV)DUJR0/3)65HJLRQV%DQNDQG-30RUJDQ6HFXULWLHV //& ³$VVLJQPHQWDQG$FFHSWDQFH´PHDQVDQDVVLJQPHQWDQGDFFHSWDQFHHQWHUHGLQWRE\D /HQGHUDQGDQ(OLJLEOH$VVLJQHH ZLWKWKHFRQVHQWRIDQ\SDUW\ZKRVHFRQVHQWLVUHTXLUHGE\ 6HFWLRQDQGDFFHSWHGE\WKH$GPLQLVWUDWLYH$JHQWLQWKHIRUPRI([KLELW$RUDQ\RWKHU IRUPDSSURYHGE\WKH$GPLQLVWUDWLYH$JHQW ³$YDLODELOLW\5HVHUYHV´PHDQVVXFKUHVHUYHVDVWKH$GPLQLVWUDWLYH$JHQWIURPWLPHWR WLPHGHWHUPLQHVLQWKH$GPLQLVWUDWLYH$JHQW¶VUHDVRQDEOHGLVFUHWLRQDVEHLQJDSSURSULDWHWR UHIOHFWWKHLPSHGLPHQWVWRWKH$JHQWV¶DELOLW\WRUHDOL]HXSRQWKH&ROODWHUDO:LWKRXWOLPLWLQJWKH JHQHUDOLW\RIWKHIRUHJRLQJ$YDLODELOLW\5HVHUYHVPD\LQFOXGH EXWDUHQRWOLPLWHGWR  D WKH &RQVLJQRU3D\DEOHV5HVHUYHDQG E UHVHUYHVEDVHGRQ L UHQW EXWLQQRHYHQWWRH[FHHGWZR PRQWKV¶UHQW IRUOHDVHGORFDWLRQVLQWKHVWDWHVRI9LUJLQLD:DVKLQJWRQ3HQQV\OYDQLDDQGDQ\ RWKHUVWDWHLQZKLFK$SSOLFDEOH/DZSURYLGHVDODQGORUGZLWKD/LHQIRUXQSDLGUHQWKDYLQJ SULRULW\RYHUWKH/LHQRIWKH&ROODWHUDO$JHQWDQGIRUGLVWULEXWLRQFHQWHUVIRUZKLFKWKH/RDQ 3DUWLHVKDYHQRWGHOLYHUHGDODQGORUG¶VZDLYHUWRWKH&ROODWHUDO$JHQW LL *LIW&HUWLILFDWHVDQG 0HUFKDQGLVH&UHGLW/LDELOLW\ LLL FXVWRPVGXWLHVDQGRWKHUFRVWVWRUHOHDVH,QYHQWRU\ZKLFKLV EHLQJLPSRUWHGLQWRWKH8QLWHG6WDWHVDQG LY SDVWGXH7D[HVDQGRWKHUJRYHUQPHQWDOFKDUJHV LQFOXGLQJDGYDORUHPUHDOHVWDWHSHUVRQDOSURSHUW\VDOHVDQGRWKHU7D[HVZKLFKPLJKWKDYH SULRULW\RYHUWKHLQWHUHVWVRIWKH&ROODWHUDO$JHQWLQWKH&ROODWHUDO ³$YHUDJH'DLO\([FHVV$YDLODELOLW\´VKDOOPHDQWKHDYHUDJHGDLO\([FHVV$YDLODELOLW\ IRUDVDSSOLFDEOHHLWKHU D WKHLPPHGLDWHO\SUHFHGLQJILVFDOTXDUWHU E WKHLPPHGLDWHO\ SUHFHGLQJ)LVFDO0RQWKRU F HDFK)LVFDO0RQWKGXULQJDQ\SURMHFWHGWZHOYH  )LVFDO 0RQWKV ³%DLO,Q$FWLRQ´PHDQVWKHH[HUFLVHRIDQ\:ULWH'RZQDQG&RQYHUVLRQ3RZHUVE\WKH DSSOLFDEOH(($5HVROXWLRQ$XWKRULW\LQUHVSHFWRIDQ\OLDELOLW\RIDQ(($)LQDQFLDO,QVWLWXWLRQ ³%DLO,Q/HJLVODWLRQ´PHDQVZLWKUHVSHFWWRDQ\(($0HPEHU&RXQWU\LPSOHPHQWLQJ $UWLFOHRI'LUHFWLYH(8RIWKH(XURSHDQ3DUOLDPHQWDQGRIWKH&RXQFLORIWKH (XURSHDQ8QLRQWKHLPSOHPHQWLQJODZIRUVXFK(($0HPEHU&RXQWU\IURPWLPHWRWLPHZKLFK LVGHVFULEHGLQWKH(8%DLO,Q/HJLVODWLRQ6FKHGXOH ³%DQNRI$PHULFD´VKDOOPHDQ%DQNRI$PHULFD1$DQDWLRQDOEDQNLQJDVVRFLDWLRQ ³%DQN3URGXFWV´PHDQVDQ\VHUYLFHVRUIDFLOLWLHVSURYLGHGWRDQ\/RDQ3DUW\E\WKH $GPLQLVWUDWLYH$JHQWWKH&ROODWHUDO$JHQWWKH7HUP/RDQ$JHQWDQ\/HQGHURUDQ\RIWKHLU 


 
UHVSHFWLYH$IILOLDWHVLQFOXGLQJZLWKRXWOLPLWDWLRQRQDFFRXQWRI D +HGJLQJ$JUHHPHQWV E SXUFKDVHFDUGV F FUHGLWDQGGHELWFDUGV G OHDVLQJ GH )DFWRUHG5HFHLYDEOHVDQG HI VXSSO\ FKDLQILQDQFHVHUYLFHVLQFOXGLQJZLWKRXWOLPLWDWLRQWUDGHSD\DEOHVHUYLFHVDQGVXSSOLHUDFFRXQWV UHFHLYDEOHSXUFKDVHVEXWH[FOXGLQJ&DVK0DQDJHPHQW6HUYLFHV ³%DQN3URGXFWV&DS´PHDQVWKHOHVVHURI L WKHDJJUHJDWHDPRXQWRI2EOLJDWLRQVLQ UHVSHFWRI%DQN3URGXFWVWKHQRXWVWDQGLQJRU LL WKHVXPRI ³%DQNUXSWF\&RGH´PHDQV7LWOH86&DVQRZRUKHUHDIWHULQHIIHFWRUDQ\ VXFFHVVRUWKHUHWR ³%HQHILFLDO2ZQHU´PHDQVHDFKRIWKHIROORZLQJ D HDFKLQGLYLGXDOLIDQ\ZKR GLUHFWO\RULQGLUHFWO\RZQVRUPRUHRIWKHHTXLW\LQWHUHVWVLQ%RUURZHU E DVLQJOH LQGLYLGXDOZLWKVLJQLILFDQWUHVSRQVLELOLW\WRFRQWUROPDQDJHRUGLUHFW%RUURZHUDQG F D EHQHILFLDORZQHUDVRWKHUZLVHGHILQHGLQ&)56HFWLRQ ³%ORFNHG$FFRXQW$JUHHPHQWV´KDVWKHPHDQLQJVHWIRUWKLQ6HFWLRQ F  ³%ORFNHG$FFRXQW%DQNV´VKDOOPHDQWKHEDQNVZLWKZKRPWKH%RUURZHUKDVHQWHUHG LQWR%ORFNHG$FFRXQW$JUHHPHQWV ³%ORFNHG$FFRXQWV´VKDOOKDYHWKHPHDQLQJVHWIRUWKLQ6HFWLRQ F  ³%RDUG´PHDQVWKH%RDUGRI*RYHUQRUVRIWKH)HGHUDO5HVHUYH6\VWHPRIWKH8QLWHG 6WDWHVRI$PHULFD ³%RUURZHU´PHDQV6SHFLDOW\5HWDLOHUV,QFD7H[DVFRUSRUDWLRQ ³%RUURZLQJ´VKDOOPHDQ D WKHLQFXUUHQFHRI/RDQVRIDVLQJOH7\SHRQDVLQJOHGDWH DQGKDYLQJLQWKHFDVHRI/,%2/RDQVDVLQJOH,QWHUHVW3HULRGRU E D6ZLQJOLQH/RDQ ³%RUURZLQJ%DVH´PHDQVDWDQ\WLPHRIFDOFXODWLRQDQDPRXQWHTXDOWRLQGLYLGXDOO\RU FROOHFWLYHO\ DVWKHFRQWH[WPD\UHTXLUH WKH5HYROYLQJ/RDQ%RUURZLQJ%DVHDQGWKH7HUP /RDQ%RUURZLQJ%DVH D WKH&UHGLW&DUG$GYDQFH5DWHmultiplied by WKHIDFHDPRXQWRI(OLJLEOH &UHGLW&DUG5HFHLYDEOHVSOXV E WKH$SSUDLVDO3HUFHQWDJHRIWKH$SSUDLVHG9DOXHRI(OLJLEOH,QYHQWRU\QHW RI,QYHQWRU\5HVHUYHVPLQXV F WKHWKHQDPRXQWRIDOO$YDLODELOLW\5HVHUYHV ³%RUURZLQJ%DVH&HUWLILFDWH´KDVWKHPHDQLQJDVVLJQHGWRVXFKWHUPLQ6HFWLRQ I  ³%RUURZLQJ5HTXHVW´PHDQVDUHTXHVWE\WKH%RUURZHUIRUD%RUURZLQJLQDFFRUGDQFH ZLWK6HFWLRQ 


 
³%UHDNDJH&RVWV´VKDOOKDYHWKHPHDQLQJVHWIRUWKLQ6HFWLRQ EF  ³%XVLQHVV'D\´PHDQVDQ\GD\WKDWLVQRWD6DWXUGD\6XQGD\RURWKHUGD\RQZKLFK FRPPHUFLDOEDQNVLQ%RVWRQ0DVVDFKXVHWWV1HZ<RUN1HZ<RUNRU+RXVWRQ7H[DVDUH DXWKRUL]HGRUUHTXLUHGE\ODZWRUHPDLQFORVHGSURYLGHGWKDWZKHQXVHGLQFRQQHFWLRQZLWKD /,%2/RDQWKHWHUP³%XVLQHVV'D\´VKDOODOVRH[FOXGHDQ\GD\RQZKLFKEDQNVDUHQRWRSHQIRU GHDOLQJVLQGROODUGHSRVLWVLQ/RQGRQRUVXFKRWKHUHXURGROODULQWHUEDQNPDUNHWDVPD\EH VHOHFWHGE\WKH$GPLQLVWUDWLYH$JHQWLQLWVVROHGLVFUHWLRQDFWLQJLQJRRGIDLWK([FHSWDV RWKHUZLVHSURYLGHGKHUHLQLIDQ\GD\RQZKLFKDSD\PHQWLVGXHLVQRWD%XVLQHVV'D\WKHQWKH SD\PHQWVKDOOEHGXHRQWKHQH[WGD\IROORZLQJZKLFKLVD%XVLQHVV'D\DQGVXFKH[WHQVLRQRI WLPHVKDOOEHLQFOXGHGLQFRPSXWLQJLQWHUHVWDQGIHHVLQFRQQHFWLRQZLWKVXFKSD\PHQW ³&DSLWDO([SHQGLWXUHV´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³&DSLWDO/HDVH2EOLJDWLRQV´RIDQ\3HUVRQPHDQVWKHREOLJDWLRQVRIVXFK3HUVRQWRSD\ UHQWRURWKHUDPRXQWVXQGHUDQ\OHDVHRI RURWKHUDUUDQJHPHQWFRQYH\LQJWKHULJKWWRXVH UHDORU SHUVRQDOSURSHUW\RUDFRPELQDWLRQWKHUHRIZKLFKREOLJDWLRQVDUHUHTXLUHGWREHFODVVLILHGDQG DFFRXQWHGIRUDVFDSLWDOOHDVHVRQDEDODQFHVKHHWRIVXFK3HUVRQXQGHU*$$3DQGWKHDPRXQW RIVXFKREOLJDWLRQVVKDOOEHWKHFDSLWDOL]HGDPRXQWWKHUHRIGHWHUPLQHGLQDFFRUGDQFHZLWK *$$3 ³&DVK&ROODWHUDO$FFRXQW´VKDOOPHDQDQLQWHUHVWEHDULQJDFFRXQWHVWDEOLVKHGE\WKH %RUURZHUZLWKWKH&ROODWHUDO$JHQWDW:HOOV)DUJRXQGHUWKHVROHDQGH[FOXVLYHGRPLQLRQDQG FRQWURORIWKH&ROODWHUDO$JHQWGHVLJQDWHGDVWKH³6SHFLDOW\5HWDLOHUV&DVK&ROODWHUDO$FFRXQW´ ³&DVK'RPLQLRQ(YHQW´VKDOOPHDQHLWKHU L WKHRFFXUUHQFHDQGFRQWLQXDQFHRIDQ\ (YHQWRI'HIDXOWRU LL WKHIDLOXUHRIWKH%RUURZHUWRPDLQWDLQ([FHVV$YDLODELOLW\RIDWOHDVWWKH JUHDWHURI L RU LL WZHOYHDQGRQHKDOISHUFHQW  RIWKH$GMXVWHG&RPELQHG /RDQ&DSIRUDSHULRGRIILYH  FRQVHFXWLYH%XVLQHVV'D\V)RUSXUSRVHVRIWKLV$JUHHPHQW WKHRFFXUUHQFHRID&DVK'RPLQLRQ(YHQWVKDOOEHGHHPHGFRQWLQXLQJ L VRORQJDVVXFK(YHQW RI'HIDXOWLVFRQWLQXLQJDQGRU LL LIWKH&DVK'RPLQLRQ(YHQWDULVHVDVDUHVXOWRIWKH %RUURZHU¶VIDLOXUHWRDFKLHYH([FHVV$YDLODELOLW\DVUHTXLUHGKHUHXQGHUXQWLO([FHVV $YDLODELOLW\KDVH[FHHGHGWKHJUHDWHURI L RU LL WZHOYHDQGRQHKDOISHUFHQW  RIWKH$GMXVWHG&RPELQHG/RDQ&DSIRUWKLUW\  FRQVHFXWLYH%XVLQHVV'D\VLQ ZKLFKFDVHD&DVK'RPLQLRQ(YHQWVKDOOQRORQJHUEHGHHPHGWREHFRQWLQXLQJIRUSXUSRVHVRI WKLV$JUHHPHQWprovided thatD&DVK'RPLQLRQ(YHQWVKDOOEHGHHPHGFRQWLQXLQJ HYHQLIDQ 


 
(YHQWRI'HIDXOWLVQRORQJHUFRQWLQXLQJDQGRU([FHVV$YDLODELOLW\H[FHHGVWKHUHTXLUHGDPRXQW IRUWKLUW\  FRQVHFXWLYH%XVLQHVV'D\V DWDOOWLPHVDIWHUD&DVK'RPLQLRQ(YHQWKDVRFFXUUHG DQGEHHQGLVFRQWLQXHGWKUHH  WLPHVLQDQ\SHULRGRIGD\V7KHWHUPLQDWLRQRID&DVK 'RPLQLRQ(YHQWDVSURYLGHGKHUHLQVKDOOLQQRZD\OLPLWZDLYHRUGHOD\WKHRFFXUUHQFHRID VXEVHTXHQW&DVK'RPLQLRQ(YHQWLQWKHHYHQWWKDWWKHFRQGLWLRQVVHWIRUWKLQWKLVGHILQLWLRQ DJDLQDULVH ³&DVK0DQDJHPHQW6HUYLFHV´PHDQVDQ\FDVKPDQDJHPHQWVHUYLFHVRUIDFLOLWLHVSURYLGHG WRDQ\/RDQ3DUW\E\WKH$GPLQLVWUDWLYH$JHQWWKH&ROODWHUDO$JHQWWKH7HUP/RDQ$JHQWRU DQ\/HQGHURUDQ\RIWKHLUUHVSHFWLYH$IILOLDWHVLQFOXGLQJZLWKRXWOLPLWDWLRQ D $&+ WUDQVDFWLRQV E FDVKPDQDJHPHQWVHUYLFHVLQFOXGLQJZLWKRXWOLPLWDWLRQFRQWUROOHG GLVEXUVHPHQWVHUYLFHVWUHDVXU\GHSRVLWRU\RYHUGUDIWDQGHOHFWURQLFIXQGVWUDQVIHUVHUYLFHV F IRUHLJQH[FKDQJHIDFLOLWLHVDQG G FUHGLWFDUGSURFHVVLQJVHUYLFHVDQG H FUHGLWRUGHELWFDUGV ³&DVK5HFHLSWV´KDVWKHPHDQLQJSURYLGHGWKHUHIRULQ6HFWLRQ F  ³&(5&/$´PHDQVWKH&RPSUHKHQVLYH(QYLURQPHQWDO5HVSRQVH&RPSHQVDWLRQDQG /LDELOLW\$FW86&†HWVHT ³&HUWLILFDWHRI%HQHILFLDO2ZQHUVKLS´PHDQVZLWKUHVSHFWWR%RUURZHUDFHUWLILFDWHLQ IRUPDQGVXEVWDQFHUHDVRQDEO\VDWLVIDFWRU\WRWKH$GPLQLVWUDWLYH$JHQWFHUWLI\LQJDPRQJRWKHU WKLQJVWKH%HQHILFLDO2ZQHURI%RUURZHU ³&KDQJHLQ&RQWURO´PHDQVDWDQ\WLPH D GXULQJDQ\SHULRGRIWZHOYH  PRQWKV LQGLYLGXDOVZKRDWWKHEHJLQQLQJRIVXFKSHULRGFRQVWLWXWHGWKHERDUGRIGLUHFWRUVRIWKH3DUHQW WRJHWKHUZLWKDQ\QHZGLUHFWRUVZKRVHHOHFWLRQRUDSSRLQWPHQWE\VXFKERDUGRIGLUHFWRUVRU ZKRVHQRPLQDWLRQIRUHOHFWLRQE\VKDUHKROGHUVRIWKH3DUHQWDVWKHFDVHPD\EHZDVDSSURYHG E\DYRWHRIDPDMRULW\RIWKHGLUHFWRUVVWLOOLQRIILFHZKRZHUHHLWKHUGLUHFWRUVDWWKHEHJLQQLQJ RIVXFKSHULRGRUZKRVHHOHFWLRQRUQRPLQDWLRQIRUHOHFWLRQZDVSUHYLRXVO\VRDSSURYHG FHDVH IRUDQ\UHDVRQWRFRQVWLWXWHDPDMRULW\RIWKHERDUGRIGLUHFWRUVWKHQLQRIILFHRU E DQ\SHUVRQ RUJURXS ZLWKLQWKHPHDQLQJRIWKH6HFXULWLHVDQG([FKDQJH$FWRIDVDPHQGHG LVRU EHFRPHVWKHEHQHILFLDORZQHU ZLWKLQWKHPHDQLQJRI5XOHGDQGGRIWKH6HFXULWLHVDQG ([FKDQJH$FWRIDVDPHQGHGH[FHSWWKDWVXFKSHUVRQVKDOOEHGHHPHGWRKDYH³EHQHILFLDO RZQHUVKLS´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³&KDQJHLQ/DZ´PHDQV D WKHDGRSWLRQRIDQ\ODZUXOHRUUHJXODWLRQDIWHUWKHGDWHRI WKLV$JUHHPHQW E DQ\FKDQJHLQDQ\ODZUXOHRUUHJXODWLRQRULQWKHLQWHUSUHWDWLRQRU DSSOLFDWLRQWKHUHRIE\DQ\*RYHUQPHQWDO$XWKRULW\DIWHUWKHGDWHRIWKLV$JUHHPHQWRU F 


 
FRPSOLDQFHE\DQ\/HQGHURUWKH,VVXLQJ%DQN RUIRUSXUSRVHVRI6HFWLRQ E E\WKH GHVLJQDWHGOHQGLQJRIILFHRIVXFK/HQGHURUE\VXFK/HQGHU¶VRUWKH,VVXLQJ%DQN¶VKROGLQJ FRPSDQ\LIDQ\ ZLWKDQ\UHTXHVWJXLGHOLQHRUGLUHFWLYH ZKHWKHURUQRWKDYLQJWKHIRUFHRI ODZ RIDQ\*RYHUQPHQWDO$XWKRULW\PDGHRULVVXHGDIWHUWKHGDWHRIWKLV$JUHHPHQWSURYLGHG KRZHYHUIRUSXUSRVHVRIWKLV$JUHHPHQW L DOOUHTXHVWVJXLGHOLQHVRUGLUHFWLYHVLQFRQQHFWLRQ ZLWKWKH'RGG)UDQN:DOO6WUHHW5HIRUPDQG&RQVXPHU3URWHFWLRQ$FWDQG LL DOOUXOHV JXLGHOLQHVRUGLUHFWLYHVSURPXOJDWHGE\WKH%DQNIRU,QWHUQDWLRQDOVHWWOHPHQWVWKH%DVHO &RPPLWWHHRQ%DQNLQJ6XSHUYLVLRQ RUDQ\VXFFHVVRURUVLPLODUDXWKRULW\ RUWKH8QLWHG6WDWHV UHJXODWRU\DXWKRULWLHVLQHDFKFDVHSXUVXDQWWR%DVHO,,,VKDOOEHGHHPHGWRKDYHJRQHLQWR HIIHFWDQGEHHQDGRSWHGDIWHUWKHGDWHKHUHRI ³&KDUJHV´KDVWKHPHDQLQJSURYLGHGWKHUHIRULQ6HFWLRQ ³&RGH´PHDQVWKH,QWHUQDO5HYHQXH&RGHRIDQGWKH7UHDVXU\UHJXODWLRQV SURPXOJDWHGWKHUHXQGHUDVDPHQGHGIURPWLPHWRWLPH ³&ROODWHUDO´PHDQVDQ\DQGDOO³&ROODWHUDO´DVGHILQHGLQDQ\DSSOLFDEOH6HFXULW\ 'RFXPHQW ³&ROODWHUDO$JHQW´PHDQV:HOOV)DUJRLQLWVFDSDFLW\DVFROODWHUDODJHQWXQGHUWKH 6HFXULW\'RFXPHQWV ³&RPHQLW\%DQN´PHDQV&RPHQLW\%DQN IRUPHUO\NQRZQDV:RUOG)LQDQFLDO1HWZRUN 1DWLRQDO%DQN RULWVVXFFHVVRUV ³&RPPHUFLDO/HWWHURI&UHGLW´PHDQVDQ\/HWWHURI&UHGLWLVVXHGIRUWKHSXUSRVHRI SURYLGLQJWKHSULPDU\SD\PHQWPHFKDQLVPLQFRQQHFWLRQZLWKWKHSXUFKDVHRIDQ\PDWHULDOV JRRGVRUVHUYLFHVE\WKH%RUURZHULQWKHRUGLQDU\FRXUVHRIEXVLQHVVRIWKH%RUURZHUDQGDQ\ EDQNHU¶VDFFHSWDQFHVUHODWHGWKHUHWR ³&RPPHUFLDO/HWWHURI&UHGLW$JUHHPHQW´PHDQVWKH&RPPHUFLDO/HWWHURI&UHGLW $JUHHPHQWUHODWLQJWRWKHLVVXDQFHRID&RPPHUFLDO/HWWHURI&UHGLWLQWKHIRUPIURPWLPHWR WLPHLQXVHE\WKH,VVXLQJ%DQN ³&RPPLWPHQW´VKDOOPHDQPHDQVZLWKUHVSHFWWRHDFK/HQGHUWKHDJJUHJDWHFRPPLWPHQW RIVXFK/HQGHUKHUHXQGHULQWKHDPRXQWVHWIRUWKRSSRVLWHLWVQDPHRQ6FKHGXOHKHUHWRRUDV PD\VXEVHTXHQWO\EHVHWIRUWKLQWKH5HJLVWHUIURPWLPHWRWLPHDVWKHVDPHPD\EH L UHGXFHG IURPWLPHWRWLPHSXUVXDQWWR6HFWLRQRU LL LQFUHDVHGIURPWLPHWRWLPHSXUVXDQWWR6HFWLRQ KHUHRILWV5HYROYLQJ/RDQ&RPPLWPHQWRULWV7HUP/RDQ&RPPLWPHQWDVDSSOLFDEOH ³&RPPLWPHQW)HH´KDVWKHPHDQLQJSURYLGHGWKHUHIRULQ6HFWLRQ ³&RPPLWPHQW,QFUHDVH´KDVWKHPHDQLQJSURYLGHGWKHUHIRULQ6HFWLRQ D  ³&RPPLWPHQW,QFUHDVH'DWH´KDVWKHPHDQLQJSURYLGHGWKHUHIRULQ6HFWLRQ  F ³&RPPLWPHQW3HUFHQWDJH´VKDOOPHDQ3HUFHQWDJH´PHDQV D ZLWKUHVSHFWWRHDFK/RDQ RU/HWWHURI&UHGLWXQGHUWKH5HYROYLQJ/RDQ&RPPLWPHQWVWKH5HYROYLQJ/RDQ&RPPLWPHQW 


 
3HUFHQWDJH E ZLWKUHVSHFWWRHDFK/RDQXQGHUWKH7HUP/RDQ&RPPLWPHQWVWKH7HUP/RDQ &RPPLWPHQW3HUFHQWDJHDQG F ZLWKUHVSHFWWRHDFK/HQGHUWKDWSHUFHQWDJHRIWKH &RPPLWPHQWVRIDOO/HQGHUVKHUHXQGHULQWKHDPRXQWVHWIRUWKRSSRVLWHLWVLWVSHUFHQWDJHRIWKH VXPRIWKH$GMXVWHG5HYROYLQJ/RDQ&RPPLWPHQWVUHSUHVHQWHGE\WKHVXPRIVXFK/HQGHU¶V 5HYROYLQJ/RDQ&RPPLWPHQWDQGWKHRXWVWDQGLQJSULQFLSDOEDODQFHRIVXFK/HQGHU¶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³&RPPRGLW\([FKDQJH$FW´PHDQVWKH&RPPRGLW\([FKDQJH$FW 86&†HWVHT  DVDPHQGHGIURPWLPHWRWLPHDQGDQ\VXFFHVVRUVWDWXWH ³&RQFHQWUDWLRQ$FFRXQW´VKDOOKDYHWKHPHDQLQJVHWIRUWKLQ6HFWLRQ F  ³&RQILGHQWLDO,QIRUPDWLRQ´VKDOOPHDQDQ\HDUQLQJVLQIRUPDWLRQLQFOXGLQJVDOHVDQG SURILWDELOLW\WUHQGVDVZHOODVDQ\RWKHUQRQSXEOLFLQIRUPDWLRQZLWKUHVSHFWWRDQ\DVSHFWRIWKH /RDQ3DUWLHV¶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³&RQVHQW´PHDQVDFWXDOFRQVHQWJLYHQE\D/HQGHUIURPZKRPVXFKFRQVHQWLVVRXJKW,I WHQ  %XVLQHVV'D\VDIWHUUHFHLSWRIZULWWHQQRWLFHWRD/HQGHUIURPWKH$GPLQLVWUDWLYH$JHQW RIDSURSRVHGFRXUVHRIDFWLRQWREHIROORZHGE\WKH$GPLQLVWUDWLYH$JHQWZLWKRXWVXFK/HQGHU¶V JLYLQJWKH$GPLQLVWUDWLYH$JHQWZULWWHQQRWLFHRIWKDW/HQGHU¶VFRQVHQWWRVXFKFRXUVHRIDFWLRQ VXFK/HQGHUVKDOOEHGHHPHGQRWWRKDYHFRQVHQWHGWKHUHWR ³&RQVLJQRU3D\DEOHV5HVHUYH´PHDQVVXFK$YDLODELOLW\5HVHUYHDV$GPLQLVWUDWLYH$JHQW VKDOOIURPWLPHWRWLPHLPSOHPHQWDQGPDLQWDLQLQLWVUHDVRQDEOHGLVFUHWLRQWRUHIOHFWDPRXQWV WKDWDUHRUPD\EHSD\DEOHE\/RDQ3DUWLHVWR3HUVRQVWKDWDVFRQVLJQRUVKDYHSODFHGJRRGV ZLWK/RDQ3DUWLHVDVFRQVLJQHHVWREHKHOGIRUVDOHE\%RUURZHUV%RUURZHURQDFRQVLJQPHQW EDVLV ³&RQVROLGDWHG´PHDQVZKHQXVHGWRPRGLI\DILQDQFLDOWHUPWHVWVWDWHPHQWRUUHSRUWRI D3HUVRQUHIHUVWRWKHDSSOLFDWLRQRUSUHSDUDWLRQRIVXFKWHUPWHVWVWDWHPHQWRUUHSRUW DV 


 
DSSOLFDEOH EDVHGXSRQWKHFRQVROLGDWLRQLQDFFRUGDQFHZLWK*$$3RIWKHILQDQFLDOFRQGLWLRQ RURSHUDWLQJUHVXOWVRIVXFK3HUVRQDQGLWV6XEVLGLDULHV ³&RQVROLGDWHG(%,7'$´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³&RQVROLGDWHG)L[HG&KDUJH&RYHUDJH5DWLR´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³&RQVROLGDWHG,QWHUHVW&KDUJHV´PHDQVIRUDQ\0HDVXUHPHQW3HULRGWKHVXPRI D DOO LQWHUHVWSUHPLXPSD\PHQWVGHEWGLVFRXQWIHHVFKDUJHVDQGUHODWHGH[SHQVHVLQFRQQHFWLRQZLWK ERUURZHGPRQH\ LQFOXGLQJFDSLWDOL]HGLQWHUHVW RULQFRQQHFWLRQZLWKWKHGHIHUUHGSXUFKDVH SULFHRIDVVHWVLQHDFKFDVHWRWKHH[WHQWWUHDWHGDVLQWHUHVWLQDFFRUGDQFHZLWK*$$3LQFOXGLQJ ZLWKRXWOLPLWDWLRQDOOFRPPLVVLRQVGLVFRXQWVDQGRWKHUIHHVDQGFKDUJHVRZHGZLWKUHVSHFWWR OHWWHUVRIFUHGLWDQGEDQNHUV¶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³&RQVROLGDWHG1HW,QFRPH´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


 
GDWHLWEHFRPHVD6XEVLGLDU\RIWKH3DUHQWRUDQ\RIWKH3DUHQW¶V6XEVLGLDULHVRULVPHUJHGLQWRRU FRQVROLGDWHGZLWKWKH3DUHQWRUDQ\RILWV6XEVLGLDULHVRUWKDW3HUVRQ¶VDVVHWVDUHDFTXLUHGE\WKH 3DUHQWRUDQ\RILWV6XEVLGLDULHVDQG G WKHLQFRPHRIDQ\GLUHFWRULQGLUHFW6XEVLGLDU\RIWKH 3DUHQWWRWKHH[WHQWWKDWWKHGHFODUDWLRQRUSD\PHQWRIGLYLGHQGVRUVLPLODUGLVWULEXWLRQVE\WKDW 6XEVLGLDU\RIWKDWLQFRPHLVQRWDWWKHWLPHSHUPLWWHGE\RSHUDWLRQRIWKHWHUPVRILWV 2UJDQL]DWLRQDO'RFXPHQWVRUDQ\DJUHHPHQWLQVWUXPHQWMXGJPHQWGHFUHHRUGHUVWDWXWHUXOHRU JRYHUQPHQWDOUHJXODWLRQDSSOLFDEOHWRWKDW6XEVLGLDU\H[FHSWWKDWWKH3DUHQW¶VHTXLW\LQDQ\QHW ORVVRIDQ\VXFK6XEVLGLDU\IRUVXFK0HDVXUHPHQW3HULRGVKDOOEHLQFOXGHGLQGHWHUPLQLQJ &RQVROLGDWHG1HW,QFRPH ³&RQWURO´PHDQVWKHSRVVHVVLRQGLUHFWO\RULQGLUHFWO\RIWKHSRZHU D WRYRWHWZHQW\ SHUFHQW  RUPRUHRIWKHVHFXULWLHVKDYLQJRUGLQDU\YRWLQJSRZHUIRUWKHHOHFWLRQRI GLUHFWRUVRID3HUVRQRU E WRGLUHFWRUFDXVHWKHGLUHFWLRQRIWKHPDQDJHPHQWRUSROLFLHVRID 3HUVRQZKHWKHUWKURXJKWKHDELOLW\WRH[HUFLVHYRWLQJSRZHUE\FRQWUDFWRURWKHUZLVH7KHWHUPV ³&RQWUROOLQJ´DQG³&RQWUROOHG´KDYHPHDQLQJVFRUUHODWLYHWKHUHWR ³&RVW´PHDQVWKHFRVWRISXUFKDVHVDVUHSRUWHGRQWKH%RUURZHU¶VLQYHQWRU\ERRNVDQG UHFRUGVEDVHGXSRQWKH%RUURZHU¶VDFFRXQWLQJSUDFWLFHVZKLFKDUHLQHIIHFWRQWKHGDWHRIWKLV $JUHHPHQW³&RVW´GRHVQRWLQFOXGHLQYHQWRU\FDSLWDOL]DWLRQFRVWVRURWKHUQRQSXUFKDVHSULFH FKDUJHV VXFKDVIUHLJKW XVHGLQWKH%RUURZHU¶VFDOFXODWLRQRIFRVWRIJRRGVVROG ³&RYHQDQW&RPSOLDQFH(YHQW´PHDQVHLWKHU D WKDWDQ(YHQWRI'HIDXOWKDVRFFXUUHGDQG LVFRQWLQXLQJRU E ([FHVV$YDLODELOLW\DWDQ\WLPHLVOHVVWKDQWKHJUHDWHURI L RU \ WHQSHUFHQW  RIWKH/RDQ&DS)RUSXUSRVHVKHUHRIWKHRFFXUUHQFHRID&RYHQDQW &RPSOLDQFH(YHQWVKDOOEHGHHPHGFRQWLQXLQJ L VRORQJDVVXFK(YHQWRI'HIDXOWLVFRQWLQXLQJ DQGRU LL LIWKH&RYHQDQW&RPSOLDQFH(YHQWDULVHVDVDUHVXOWRIWKH%RUURZHU¶VIDLOXUHWR DFKLHYH([FHVV$YDLODELOLW\DVUHTXLUHGKHUHXQGHUXQWLO([FHVV$YDLODELOLW\KDVH[FHHGHGWKH JUHDWHURI L RU \ WHQSHUFHQW  RIWKH/RDQ&DSIRUWKLUW\  FRQVHFXWLYH %XVLQHVV'D\VLQZKLFKFDVHD&RYHQDQW&RPSOLDQFH(YHQWVKDOOQRORQJHUEHGHHPHGWREH FRQWLQXLQJIRUSXUSRVHVRIWKLV$JUHHPHQWprovided that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³&UHGLW&DUG$GYDQFH5DWH´PHDQV ³&UHGLW&DUG$JUHHPHQW´VKDOOPHDQZLWKUHVSHFWWRHDFK$FFRXQWDQGRU3D\PHQW ,QWDQJLEOHZKLFKDULVHVIURPDFRQVXPHUUHYROYLQJFUHGLWDFFRXQWDUUDQJHPHQWDQGFROOHFWLYHO\ ZLWKUHVSHFWWRDOORIVXFK$FFRXQWVDQGRU3D\PHQW,QWDQJLEOHVWKHDJUHHPHQWVEHWZHHQWKH %RUURZHUDQGHDFK&UHGLW&DUG3URFHVVRUJRYHUQLQJWKHWHUPVDQGFRQGLWLRQVRIWKH $FFRXQWDQGRU&UHGLW&DUG3URFHVVRUDVVXFKDJUHHPHQWVPD\EHDPHQGHGPRGLILHGRU 


 
RWKHUZLVHFKDQJHGIURPWLPHWRWLPHDQGDVGLVWULEXWHG LQFOXGLQJDQ\DPHQGPHQWVDQGUHYLVLRQV WKHUHWR WRKROGHUVRIVXFKFRQVXPHUUHYROYLQJFUHGLWFDUGDFFRXQWV ³&UHGLW&DUG,VVXHU´VKDOOPHDQDQ\3HUVRQ RWKHUWKDQ%RUURZHURURWKHU/RDQ3DUW\ ZKRLVVXHVRUZKRVHPHPEHUVLVVXHFUHGLWFDUGVLQFOXGLQJZLWKRXWOLPLWDWLRQ&RPHQLW\%DQN RUDQ\RWKHUWKLUGSDUW\DGPLQLVWHULQJDSULYDWHODEHOFUHGLWFDUGSURJUDPIRUDQ\RIWKH/RDQ 3DUWLHVDQGIURP9LVD0DVWHU&DUG$PHULFDQ([SUHVV&R'LVFRYHUFDUGDQGRWKHUPDMRUFUHGLW FDUGSURFHVVRUVDQGRWKHULVVXHUVDSSURYHGE\WKH$GPLQLVWUDWLYH$JHQW ³&UHGLW&DUG3URFHVVRU´VKDOOPHDQDQ\VHUYLFLQJRUSURFHVVLQJDJHQWRUDQ\IDFWRURU ILQDQFLDOLQWHUPHGLDU\ZKRIDFLOLWDWHVVHUYLFHVSURFHVVHVRUPDQDJHVWKHFUHGLWDXWKRUL]DWLRQ ELOOLQJWUDQVIHUDQGRUSD\PHQWSURFHGXUHVZLWKUHVSHFWWR%RUURZHU¶VVDOHVWUDQVDFWLRQV LQYROYLQJFUHGLWFDUGRUGHELWFDUGSXUFKDVHVE\FXVWRPHUVXVLQJFUHGLWFDUGVRUGHELWFDUGV LVVXHGE\DQ\&UHGLW&DUG,VVXHU ³&UHGLW&DUG1RWLILFDWLRQV´KDVWKHPHDQLQJSURYLGHGWKHUHIRULQ6HFWLRQ F  ³&UHGLW([WHQVLRQV´DVRIDQ\GD\VKDOOEHHTXDOWRWKHVXPRI D WKHSULQFLSDOEDODQFH RIDOO/RDQVWKHQRXWVWDQGLQJDQG E WKHWKHQDPRXQWRIWKH/HWWHURI&UHGLW2XWVWDQGLQJV ³&UHGLW3DUW\´RU³&UHGLW3DUWLHV´PHDQV D LQGLYLGXDOO\ L HDFK/HQGHUDQGLWV $IILOLDWHV LL WKH$GPLQLVWUDWLYH$JHQWDQGWKH&ROODWHUDO$JHQW LLL WKH7HUP/RDQ$JHQW LY  WKH,VVXLQJ%DQN LYY WKH$UUDQJHUV YYL HDFKEHQHILFLDU\RIHDFKLQGHPQLILFDWLRQREOLJDWLRQ XQGHUWDNHQE\DQ\/RDQ3DUW\XQGHUDQ\/RDQ'RFXPHQW YLYLL DQ\RWKHU3HUVRQWRZKRP 2EOLJDWLRQVXQGHUWKLV$JUHHPHQWDQGRWKHU/RDQ'RFXPHQWVDUHRZLQJDQG YLLYLLL WKH VXFFHVVRUVDQGDVVLJQVRIHDFKRIWKHIRUHJRLQJDQG E FROOHFWLYHO\DOORIWKHIRUHJRLQJ ³&UHGLW3DUW\([SHQVHV´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¶FXVWRPDU\IHHVDQGFKDUJHVLPSRVHGRULQFXUUHGLQFRQQHFWLRQZLWKDQ\EDFNJURXQG FKHFNVRU2)$&3(3VHDUFKHVUHODWHGWRDQ\/RDQ3DUW\RULWV6XEVLGLDULHVDQG * DOOVXFK GRFXPHQWHGDQGRXWRISRFNHWH[SHQVHVLQFXUUHGGXULQJDQ\ZRUNRXWUHVWUXFWXULQJRU QHJRWLDWLRQVLQUHVSHFWRIWKH2EOLJDWLRQV LL LQFRQQHFWLRQZLWK $ WKHV\QGLFDWLRQRIWKH FUHGLWIDFLOLWLHVSURYLGHGIRUKHUHLQ % WKHSUHSDUDWLRQQHJRWLDWLRQDGPLQLVWUDWLRQ PDQDJHPHQWH[HFXWLRQDQGGHOLYHU\RIWKLV$JUHHPHQWDQGWKHRWKHU/RDQ'RFXPHQWVRUDQ\ DPHQGPHQWVPRGLILFDWLRQVRUZDLYHUVRIWKHSURYLVLRQVWKHUHRI ZKHWKHURUQRWWKHWUDQVDFWLRQV FRQWHPSODWHGKHUHE\RUWKHUHE\VKDOOEHFRQVXPPDWHG  & WKHHQIRUFHPHQWRUSURWHFWLRQRI WKHLUULJKWVLQFRQQHFWLRQZLWKWKLV$JUHHPHQWRUWKH/RDQ'RFXPHQWVRUHIIRUWVWRSUHVHUYH SURWHFWFROOHFWRUHQIRUFHWKH&ROODWHUDO LQFOXGLQJZLWKRXWOLPLWDWLRQLQFRQQHFWLRQZLWK GXULQJWKHFRQWLQXDWLRQRIDQ(YHQWRI'HIDXOWJDLQLQJSRVVHVVLRQRIPDLQWDLQLQJKDQGOLQJ SUHVHUYLQJVWRULQJVKLSSLQJVHOOLQJSUHSDULQJIRUVDOHRUDGYHUWLVLQJWRVHOOWKH&ROODWHUDORU 


 
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³''$V´PHDQVDQ\FKHFNLQJRURWKHUGHPDQGGHSRVLWDFFRXQWPDLQWDLQHGE\WKH %RUURZHU ³''$1RWLILFDWLRQ´KDVWKHPHDQLQJSURYLGHGWKHUHIRULQ6HFWLRQ F  ³'HEW6HUYLFH&KDUJHV´PHDQVIRUDQ\0HDVXUHPHQW3HULRGWKHVXPRI D &RQVROLGDWHG ,QWHUHVW&KDUJHVSDLGRUUHTXLUHGWREHSDLGIRUVXFK0HDVXUHPHQW3HULRGSOXV E SULQFLSDO SD\PHQWVPDGHRUUHTXLUHGWREHPDGHRQDFFRXQWRI,QGHEWHGQHVV H[FOXGLQJWKH2EOLJDWLRQV DQGDQ\REOLJDWLRQVRQDFFRXQWRI6\QWKHWLF/HDVHVEXWLQFOXGLQJZLWKRXWOLPLWDWLRQ&DSLWDO /HDVH2EOLJDWLRQV IRUVXFK0HDVXUHPHQW3HULRGLQHDFKFDVHGHWHUPLQHGRQD&RQVROLGDWHG EDVLVLQDFFRUGDQFHZLWK*$$3 ³'HEWRU5HOLHI/DZV´PHDQVWKH%DQNUXSWF\&RGHDQGDOORWKHUOLTXLGDWLRQ FRQVHUYDWRUVKLSEDQNUXSWF\DVVLJQPHQWIRUWKHEHQHILWRIFUHGLWRUVPRUDWRULXPUHDUUDQJHPHQW UHFHLYHUVKLSLQVROYHQF\UHRUJDQL]DWLRQRUVLPLODUGHEWRUUHOLHIODZVRIWKH8QLWHG6WDWHVRU RWKHUDSSOLFDEOHMXULVGLFWLRQVIURPWLPHWRWLPHLQHIIHFWDQGDIIHFWLQJWKHULJKWVRIFUHGLWRUV JHQHUDOO\ ³'HIDXOW´PHDQVDQ\HYHQWRUFRQGLWLRQWKDWFRQVWLWXWHVDQ(YHQWRI'HIDXOWRUWKDWXSRQ QRWLFHODSVHRIWLPHRUERWKZRXOGXQOHVVFXUHGRUZDLYHGEHFRPHDQ(YHQWRI'HIDXOW ³'HOLQTXHQW/HQGHU´KDVWKHPHDQLQJWKHUHIRUSURYLGHGLQ6HFWLRQ ³'HOLQTXHQW/HQGHU¶V)XWXUH&RPPLWPHQW´KDVWKHPHDQLQJWKHUHIRUSURYLGHGLQ6HFWLRQ  


 
³'HOLQTXHQW/HQGHU5DWH´PHDQV D IRUWKHILUVWWKUHH  GD\VIURPDQGDIWHUWKHGDWH WKHUHOHYDQWSD\PHQWLVGXHWKH%DVH5DWHDQG E WKHUHDIWHUWKHLQWHUHVWUDWHWKHQDSSOLFDEOHWR /RDQVWKDWDUH3ULPH5DWH/RDQV LQFOXVLYHRIWKH$SSOLFDEOH0DUJLQDSSOLFDEOHWKHUHWR  ³'HWHULRUDWLQJ/HQGHU´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³',3)LQDQFLQJ´PHDQVLQFRQQHFWLRQZLWKDSURFHHGLQJXQGHUDQ\'HEWRU5HOLHI/DZV ZLWKUHVSHFWWRD/RDQ3DUW\WKHFRQVHQVXDOXVHRIFDVKFROODWHUDOE\RUWKHSURYLVLRQRI ILQDQFLQJRUILQDQFLDODFFRPPRGDWLRQVWRVXFK/RDQ3DUW\ LQFOXGLQJLQHLWKHUHYHQWDOORIWKH WHUPVDQGFRQGLWLRQVHVWDEOLVKHGDQGRUDSSURYHGLQFRQQHFWLRQZLWKWKHFRQVHQVXDOXVHRIFDVK FROODWHUDOILQDQFLQJRUILQDQFLDODFFRPPRGDWLRQV E\RQHRUPRUH&UHGLW3DUWLHVSHUPLWWHG XQGHUDQGVXEMHFWWR$SSOLFDEOH/DZDQGSXUVXDQWWRDQRUGHURIDFRXUWRIFRPSHWHQW MXULVGLFWLRQ ³'ROODUV´RU³´UHIHUVWRODZIXOPRQH\RIWKH8QLWHG6WDWHVRI$PHULFD ³'UDZLQJ'RFXPHQW´PHDQVDQ\/HWWHURI&UHGLWRURWKHUGRFXPHQWSUHVHQWHGIRU SXUSRVHVRIGUDZLQJXQGHUDQ\/HWWHURI&UHGLWLQFOXGLQJE\HOHFWURQLFWUDQVPLVVLRQVXFKDV 6:,)7HOHFWURQLFPDLOIDFVLPLOHRUFRPSXWHUJHQHUDWHGFRPPXQLFDWLRQ ³(($)LQDQFLDO,QVWLWXWLRQ´PHDQV D DQ\FUHGLWLQVWLWXWLRQRULQYHVWPHQWILUP HVWDEOLVKHGLQDQ\(($0HPEHU&RXQWU\ZKLFKLVVXEMHFWWRWKHVXSHUYLVLRQRIDQ(($ 5HVROXWLRQ$XWKRULW\ E DQ\HQWLW\HVWDEOLVKHGLQDQ(($0HPEHU&RXQWU\ZKLFKLVDSDUHQWRI DQLQVWLWXWLRQGHVFULEHGLQFODXVH D RIWKLVGHILQLWLRQRU F DQ\ILQDQFLDOLQVWLWXWLRQHVWDEOLVKHG LQDQ(($0HPEHU&RXQWU\ZKLFKLVDVXEVLGLDU\RIDQLQVWLWXWLRQGHVFULEHGLQFODXVHV D RU E RIWKLVGHILQLWLRQDQGLVVXEMHFWWRFRQVROLGDWHGVXSHUYLVLRQZLWKLWVSDUHQW ³(($0HPEHU&RXQWU\´PHDQVDQ\RIWKHPHPEHUVWDWHVRIWKH(XURSHDQ8QLRQ ,FHODQG/LHFKWHQVWHLQDQG1RUZD\ 


 
³(($5HVROXWLRQ$XWKRULW\´PHDQVDQ\SXEOLFDGPLQLVWUDWLYHDXWKRULW\RUDQ\3HUVRQ HQWUXVWHGZLWKSXEOLFDGPLQLVWUDWLYHDXWKRULW\RIDQ\(($0HPEHU&RXQWU\ LQFOXGLQJDQ\ GHOHJHH KDYLQJUHVSRQVLELOLW\IRUWKHUHVROXWLRQRIDQ\(($)LQDQFLDO,QVWLWXWLRQ ³(IIHFWLYH'DWH´PHDQVWKHGDWHRQZKLFKWKHFRQGLWLRQVVSHFLILHGLQ6HFWLRQDUH VDWLVILHG RUZDLYHGLQDFFRUGDQFHZLWK6HFWLRQ  ³(OLJLEOH$VVLJQHH´PHDQV D D&UHGLW3DUW\RUDQ\RILWV$IILOLDWHV E DEDQNLQVXUDQFH FRPSDQ\RUFRPSDQ\HQJDJHGLQWKHEXVLQHVVRIPDNLQJFRPPHUFLDOORDQVKDYLQJDFRPELQHG FDSLWDODQGVXUSOXVLQH[FHVVRI F DQ$SSURYHG)XQG G DQ\3HUVRQWRZKRPD &UHGLW3DUW\DVVLJQVLWVULJKWVDQGREOLJDWLRQVXQGHUWKLV$JUHHPHQWDVSDUWRIDQDVVLJQPHQWDQG WUDQVIHURIVXFK&UHGLW3DUW\¶VULJKWVLQDQGWRDPDWHULDOSRUWLRQRIVXFK&UHGLW3DUW\¶VSRUWIROLR RIDVVHWEDVHGFUHGLWIDFLOLWLHVDQG H DQ\RWKHU3HUVRQ RWKHUWKDQDQDWXUDOSHUVRQ DSSURYHGE\ L LQWKHFDVHRIDQDVVLJQPHQWLQUHVSHFWRI5HYROYLQJ/RDQVWKH$GPLQLVWUDWLYH$JHQWDQG LL  LQWKHFDVHRIDQDVVLJQPHQWLQUHVSHFWRI7HUP/RDQVWKH7HUP/RDQ$JHQW VXFKDSSURYDOQRW WREHXQUHDVRQDEO\ZLWKKHOGRUGHOD\HGLQHLWKHUFDVH DQGVRORQJDVQR(YHQWRI'HIDXOWLV FRQWLQXLQJE\%RUURZHU VXFKDSSURYDOQRWWREHXQUHDVRQDEO\ZLWKKHOGRUGHOD\HG SURYLGHG WKDWQRWZLWKVWDQGLQJWKHIRUHJRLQJ³(OLJLEOH$VVLJQHH´VKDOOQRWLQFOXGHD/RDQ3DUW\RUDQ\RI WKH/RDQ3DUWLHV¶$IILOLDWHVRU6XEVLGLDULHV ³(OLJLEOH&UHGLW&DUG5HFHLYDEOHV´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


 
H $FFRXQWVDQGRU3D\PHQW,QWDQJLEOHVZKLFKDUHDFTXLUHGLQD3HUPLWWHG $FTXLVLWLRQXQOHVVDQGXQWLOWKH&ROODWHUDO$JHQWKDVFRPSOHWHGDQDSSUDLVDORIVXFK $FFRXQWVDQGRU3D\PHQW,QWDQJLEOHVHVWDEOLVKHVDQDGYDQFHUDWHDQGUHVHUYHV LI DSSOLFDEOH WKHUHIRUDQGRWKHUZLVHDJUHHVWKDWVXFK$FFRXQWVVKDOOEHGHHPHG(OLJLEOH &UHGLW&DUG5HFHLYDEOHVRU I $FFRXQWVDQGRU3D\PHQW,QWDQJLEOHVZKLFKWKH$GPLQLVWUDWLYH$JHQW GHWHUPLQHVLQLWVUHDVRQDEOHGLVFUHWLRQWREHXQFHUWDLQRIFROOHFWLRQ ³(OLJLEOH,Q7UDQVLW,QYHQWRU\´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³(OLJLEOH,QYHQWRU\´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³(OLJLEOH/&,QYHQWRU\´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³(QIRUFHPHQW$FWLRQ´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


 
³(QYLURQPHQWDO/DZV´PHDQVDOOODZVUXOHVUHJXODWLRQVFRGHVRUGLQDQFHVRUGHUV GHFUHHVMXGJPHQWVLQMXQFWLRQVQRWLFHVRUELQGLQJDJUHHPHQWVLVVXHGSURPXOJDWHGRUHQWHUHG LQWRE\RUZLWKDQ\*RYHUQPHQWDO$XWKRULW\UHODWLQJLQDQ\ZD\WRWKHHQYLURQPHQW SUHVHUYDWLRQRUUHFODPDWLRQRIQDWXUDOUHVRXUFHVKDQGOLQJWUHDWPHQWVWRUDJHGLVSRVDO5HOHDVH RUWKUHDWHQHG5HOHDVHRIDQ\+D]DUGRXV0DWHULDORUWRKHDOWKDQGVDIHW\PDWWHUV ³(QYLURQPHQWDO/LDELOLW\´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³(5,6$´PHDQVWKH(PSOR\HH5HWLUHPHQW,QFRPH6HFXULW\$FWRIDVDPHQGHG IURPWLPHWRWLPHDQGWKHUHJXODWLRQVSURPXOJDWHGDQGUXOLQJVLVVXHGWKHUHXQGHU ³(5,6$$IILOLDWH´PHDQVDQ\WUDGHRUEXVLQHVV ZKHWKHURUQRWLQFRUSRUDWHG WKDW WRJHWKHUZLWKWKH3DUHQWLVWUHDWHGDVDVLQJOHHPSOR\HUXQGHU6HFWLRQ E RU F RIWKH&RGH RUVROHO\IRUSXUSRVHVRI6HFWLRQRI(5,6$DQG6HFWLRQRIWKH&RGHLVWUHDWHGDVD VLQJOHHPSOR\HUXQGHU6HFWLRQRIWKH&RGH ³(5,6$(YHQW´PHDQV D DQ\³UHSRUWDEOHHYHQW´DVGHILQHGLQ6HFWLRQRI(5,6$ RUWKHUHJXODWLRQVLVVXHGWKHUHXQGHUZLWKUHVSHFWWRD3ODQ RWKHUWKDQDQHYHQWIRUZKLFKWKH GD\QRWLFHSHULRGLVZDLYHG  E WKHH[LVWHQFHZLWKUHVSHFWWRDQ\3ODQRIDQ³DFFXPXODWHG IXQGLQJGHILFLHQF\´ DVGHILQHGLQ6HFWLRQRIWKH&RGHRU6HFWLRQRI(5,6$ ZKHWKHU RUQRWZDLYHG F WKHILOLQJSXUVXDQWWR6HFWLRQ G RIWKH&RGHRU6HFWLRQ G RI(5,6$ RIDQDSSOLFDWLRQIRUDZDLYHURIWKHPLQLPXPIXQGLQJVWDQGDUGZLWKUHVSHFWWRDQ\3ODQ G WKH LQFXUUHQFHE\WKH3DUHQWRUDQ\RILWV(5,6$$IILOLDWHVRIDQ\OLDELOLW\XQGHU7LWOH,9RI(5,6$ ZLWKUHVSHFWWRWKHWHUPLQDWLRQRIDQ\3ODQ H WKHUHFHLSWE\WKH3DUHQWRUDQ\(5,6$$IILOLDWH IURPWKH3%*&RUDSODQDGPLQLVWUDWRURIDQ\QRWLFHUHODWLQJWRDQLQWHQWLRQWRWHUPLQDWHDQ\ 3ODQRU3ODQVRUWRDSSRLQWDWUXVWHHWRDGPLQLVWHUDQ\3ODQ I WKHLQFXUUHQFHE\WKH3DUHQWRU DQ\RILWV(5,6$$IILOLDWHVRIDQ\OLDELOLW\ZLWKUHVSHFWWRWKHZLWKGUDZDORUSDUWLDOZLWKGUDZDO IURPDQ\3ODQRU0XOWLHPSOR\HU3ODQRU J WKHUHFHLSWE\WKH3DUHQWRUDQ\(5,6$$IILOLDWHRI DQ\QRWLFHRUWKHUHFHLSWE\DQ\0XOWLHPSOR\HU3ODQIURPWKH3DUHQWRUDQ\(5,6$$IILOLDWHRI DQ\QRWLFHFRQFHUQLQJWKHLPSRVLWLRQRI:LWKGUDZDO/LDELOLW\RUDGHWHUPLQDWLRQWKDWD 0XOWLHPSOR\HU3ODQLVRULVH[SHFWHGWREHLQVROYHQWRULQUHRUJDQL]DWLRQZLWKLQWKHPHDQLQJRI 7LWOH,9RI(5,6$ ³(YHQWRI'HIDXOW´KDVWKHPHDQLQJDVVLJQHGWRVXFKWHUPLQ6HFWLRQ ³(8%DLO,Q/HJLVODWLRQ6FKHGXOH´PHDQVWKH(8%DLO,Q/HJLVODWLRQ6FKHGXOHSXEOLVKHG E\WKH/RDQ0DUNHW$VVRFLDWLRQ RUDQ\VXFFHVVRU3HUVRQ DVLQHIIHFWIURPWLPHWRWLPH 


 
³([FHVV$YDLODELOLW\´PHDQVDVRIDQ\GDWHRIGHWHUPLQDWLRQWKHGLIIHUHQFHLIDQ\ EHWZHHQ D WKH5HYROYLQJ/RDQ&DSDQG E WKHRXWVWDQGLQJ&UHGLW([WHQVLRQV H[FOXGLQJWKRVH PDGHLQUHVSHFWRIWKH7HUP/RDQ  ³([FOXGHG6ZDS2EOLJDWLRQ´PHDQVZLWKUHVSHFWWRDQ\)DFLOLW\*XDUDQWRUDQ\6ZDS 2EOLJDWLRQLIDQGWRWKHH[WHQWWKDWDOORUDSRUWLRQRIWKH*XDUDQWHHRIVXFK)DFLOLW\*XDUDQWRU RIRUWKHJUDQWE\VXFK)DFLOLW\*XDUDQWRURIDVHFXULW\LQWHUHVWWRVHFXUHVXFK6ZDS2EOLJDWLRQ RUDQ\*XDUDQWHHWKHUHRI LVRUEHFRPHVLOOHJDOXQGHUWKH&RPPRGLW\([FKDQJH$FWRUDQ\UXOH UHJXODWLRQRURUGHURIWKH&RPPRGLW\)XWXUHV7UDGLQJ&RPPLVVLRQ RUWKHDSSOLFDWLRQRURIILFLDO LQWHUSUHWDWLRQRIDQ\WKHUHRI E\YLUWXHRIVXFK)DFLOLW\*XDUDQWRU¶VIDLOXUHIRUDQ\UHDVRQWR FRQVWLWXWHDQ³HOLJLEOHFRQWUDFWSDUWLFLSDQW´DVGHILQHGLQWKH&RPPRGLW\([FKDQJH$FWDQGWKH UHJXODWLRQVWKHUHXQGHUDWWKHWLPHWKH*XDUDQWHHRIVXFK)DFLOLW\*XDUDQWRURUWKHJUDQWRIVXFK VHFXULW\LQWHUHVWEHFRPHVHIIHFWLYHZLWKUHVSHFWWRVXFK6ZDS2EOLJDWLRQ,ID6ZDS2EOLJDWLRQ DULVHVXQGHUDPDVWHUDJUHHPHQWJRYHUQLQJPRUHWKDQRQHVZDSVXFKH[FOXVLRQVKDOODSSO\RQO\ WRWKHSRUWLRQRIVXFK6ZDS2EOLJDWLRQWKDWLVDWWULEXWDEOHWRVZDSVIRUZKLFKVXFK*XDUDQWHHRU VHFXULW\LQWHUHVWLVRUEHFRPHVLOOHJDO ³([FOXGHG7D[HV´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¶VIDLOXUHWRFRPSO\ ZLWK6HFWLRQV H RU I DQG G DQ\8QLWHG6WDWHV86IHGHUDOZLWKKROGLQJWD[WKDWZRXOGQRW KDYHEHHQLPSRVHGEXWIRUDIDLOXUHE\VXFKUHFLSLHQW RUDQ\ILQDQFLDOLQVWLWXWLRQWKURXJKZKLFK DQ\SD\PHQWLVPDGHWRVXFKUHFLSLHQW WRFRPSO\ZLWKWKHDSSOLFDEOHUHTXLUHPHQWVRILPSRVHG XQGHU)$7&$ ³([LVWLQJ&UHGLW$JUHHPHQW´KDVWKHPHDQLQJVHWIRUWKLQWKHUHFLWDOVKHUHWR ³([LVWLQJ/HWWHUVRI&UHGLW´DUHLGHQWLILHGRQ6FKHGXOH D  ³)DFWRUHG5HFHLYDEOHV´PHDQVDQ\$FFRXQWVRULJLQDOO\RZHGRURZLQJE\D/RDQ3DUW\ WRDQRWKHU3HUVRQZKLFKKDYHEHHQSXUFKDVHGE\RUIDFWRUHGZLWK:HOOV)DUJRRUDQ\RILWV $IILOLDWHVSXUVXDQWWRDIDFWRULQJDUUDQJHPHQWRURWKHUZLVHZLWKWKH3HUVRQWKDWVROGWKHJRRGVRU UHQGHUHGWKHVHUYLFHVWRWKH/RDQ3DUW\ZKLFKJDYHULVHWRVXFK$FFRXQW 


 
³)DFLOLW\*XDUDQW\´PHDQVWKH$PHQGHGDQG5HVWDWHG*XDUDQW\GDWHGDVRI-XQH H[HFXWHGE\WKH)DFLOLW\*XDUDQWRUVLQIDYRURIWKH$JHQWVWKH,VVXLQJ%DQNDQGWKHRWKHU &UHGLW3DUWLHV ³)DFLOLW\*XDUDQWRUV´PHDQVWKH3DUHQWDQGHDFKRILWV6XEVLGLDULHVQRZH[LVWLQJRU KHUHDIWHUFUHDWHGRWKHUWKDQ L )RUHLJQ6XEVLGLDULHVDQG LL WKH%RUURZHU ³)DFLOLW\*XDUDQWRUV&ROODWHUDO'RFXPHQWV´PHDQVDOOVHFXULW\DJUHHPHQWVPRUWJDJHV SOHGJHDJUHHPHQWVGHHGVRIWUXVWDQGRWKHULQVWUXPHQWVGRFXPHQWVRUDJUHHPHQWVH[HFXWHGDQG GHOLYHUHGE\DQ\)DFLOLW\*XDUDQWRUWRVHFXUHWKH2EOLJDWLRQV ³)$7&$´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³)&3$´PHDQVWKH)RUHLJQ&RUUXSW3UDFWLFHV$FWRIDVDPHQGHGDQGWKHUXOHVDQG UHJXODWLRQVWKHUHXQGHU ³)HGHUDO)XQGV(IIHFWLYH5DWH´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³)HH/HWWHU´PHDQVFROOHFWLYHO\ L PHDQVWKHOHWWHUHQWLWOHG³)HH/HWWHU´DPRQJWKH %RUURZHUDQGWKH$GPLQLVWUDWLYH$JHQWGDWHGDVRIWKH(IIHFWLYH'DWHDQG LL WKH)LUVW $PHQGPHQW)HH/HWWHUDQG LLL WKH7KLUG$PHQGPHQW)HH/HWWHUDVHDFKVXFKOHWWHUPD\IURP WLPHWRWLPHEHDPHQGHG³)LQDQFLDO2IILFHU´PHDQVZLWKUHVSHFWWRWKH%RUURZHUWKHFKLHI ILQDQFLDORIILFHUWUHDVXUHUFRQWUROOHURUDVVLVWDQWFRQWUROOHURIWKH%RUURZHU ³)LUVW$PHQGPHQW(IIHFWLYH'DWH´PHDQV'HFHPEHU ³)LUVW$PHQGPHQW)HH/HWWHU´PHDQVWKDWFHUWDLQIHHOHWWHUGDWHGDVRIWKH)LUVW $PHQGPHQW(IIHFWLYH'DWHEHWZHHQWKH%RUURZHUDQG$GPLQLVWUDWLYH$JHQW 


 
³)LVFDO0RQWK´PHDQVDQ\ILVFDOPRQWKRIWKH3DUHQWDQGLWV6XEVLGLDULHVDVVHWIRUWKRQ 6FKHGXOHKHUHWR³)LVFDO3HULRGV´PHDQVWKHDFFRXQWLQJSHULRGVRIWKH3DUHQWDQGLWV 6XEVLGLDULHVVHWIRUWKRQ6FKHGXOHKHUHWR ³)LVFDO<HDU´PHDQVDQ\SHULRGRIRUFRQVHFXWLYHZHHNVHQGLQJRQWKH6DWXUGD\ FORVHVWWR-DQXDU\RIHDFKFDOHQGDU\HDU ³)LWFK´PHDQV)LWFK,%&$'XII 3KHOSVDGLYLVLRQRI)LWFK,QFDQGLWVVXFFHVVRUV ³)RUHLJQ/HQGHU´PHDQVDQ\/HQGHUWKDWLVRUJDQL]HGXQGHUWKHODZVRIDMXULVGLFWLRQ RWKHUWKDQWKH8QLWHG6WDWHVRI$PHULFDRUDQ\6WDWHWKHUHRIRUWKH'LVWULFWRI&ROXPELD ³)RUHLJQ6XEVLGLDU\´PHDQVDQ\6XEVLGLDU\WKDWLV D RUJDQL]HGXQGHUWKHODZVRID MXULVGLFWLRQRWKHUWKDQWKH8QLWHG6WDWHVRI$PHULFDRUDQ\6WDWHWKHUHRIRUWKH'LVWULFWRI &ROXPELDDQG E DOORUVXEVWDQWLDOO\DOORIWKHSURSHUW\DQGDVVHWVRIZKLFKDUHORFDWHGRXWVLGH RIWKH8QLWHG6WDWHV ³)5%´PHDQVWKH%RDUGRI*RYHUQRUVRIWKH)HGHUDO5HVHUYH6\VWHPRIWKH8QLWHG6WDWHV RI$PHULFD ³)URQWLQJ)HH´PHDQVDQDPRXQWHTXDOWRSHUDQQXPRIWKHDYHUDJH/HWWHURI &UHGLW2XWVWDQGLQJVGXULQJHDFKFDOHQGDUTXDUWHU ³)XQG´PHDQVDQ\3HUVRQ RWKHUWKDQDQDWXUDOSHUVRQ WKDWLV RUZLOOEH HQJDJHGLQ PDNLQJSXUFKDVLQJKROGLQJRURWKHUZLVHLQYHVWLQJLQFRPPHUFLDOORDQVDQGVLPLODUH[WHQVLRQV RIFUHGLWLQWKHRUGLQDU\FRXUVHRILWVEXVLQHVV ³*$$3´PHDQVSULQFLSOHVZKLFKDUH D FRQVLVWHQWZLWKWKRVHSURPXOJDWHGRUDGRSWHGE\ WKH)LQDQFLDO$FFRXQWLQJ6WDQGDUGV%RDUGDQGLWVSUHGHFHVVRUV RUVXFFHVVRUV LQHIIHFWDQG DSSOLFDEOHWRWKDWDFFRXQWLQJSHULRGLQUHVSHFWRIZKLFKUHIHUHQFHWR*$$3LVEHLQJPDGHDQG E FRQVLVWHQWO\DSSOLHGZLWKSDVWILQDQFLDOVWDWHPHQWVRIWKH3DUHQWDQGLWV6XEVLGLDULHVDGRSWLQJ WKHVDPHSULQFLSOHV ³*LIW&HUWLILFDWHDQG0HUFKDQGLVH&UHGLW/LDELOLW\´PHDQVDWDQ\WLPHWKHDJJUHJDWH IDFHYDOXHDWVXFKWLPHRI D RXWVWDQGLQJJLIWFHUWLILFDWHVDQGJLIWFDUGVRIWKH%RUURZHUHQWLWOLQJ WKHKROGHUWKHUHRIWRXVHDOORUDSRUWLRQRIWKHFHUWLILFDWHWRSD\DOORUDSRUWLRQRIWKHSXUFKDVH SULFHIRUDQ\,QYHQWRU\DQG E RXWVWDQGLQJPHUFKDQGLVHFUHGLWVRIWKH%RUURZHU ³*RYHUQPHQWDO$XWKRULW\´PHDQVWKHJRYHUQPHQWRIWKH8QLWHG6WDWHVRI$PHULFDDQ\ RWKHUQDWLRQRUDQ\SROLWLFDOVXEGLYLVLRQWKHUHRIZKHWKHUVWDWHRUORFDODQGDQ\DJHQF\ DXWKRULW\LQVWUXPHQWDOLW\UHJXODWRU\ERG\FRXUWFHQWUDOEDQNRURWKHUHQWLW\H[HUFLVLQJ H[HFXWLYHOHJLVODWLYHMXGLFLDOWD[LQJUHJXODWRU\RUDGPLQLVWUDWLYHSRZHUVRUIXQFWLRQVRIRU SHUWDLQLQJWRJRYHUQPHQW ³*XDUDQWHH´RIRUE\DQ\3HUVRQ WKH³JXDUDQWRU´ PHDQVDQ\REOLJDWLRQFRQWLQJHQWRU RWKHUZLVHRIWKHJXDUDQWRUJXDUDQWHHLQJRUKDYLQJWKHHFRQRPLFHIIHFWRIJXDUDQWHHLQJDQ\ ,QGHEWHGQHVVRURWKHUREOLJDWLRQRIDQ\RWKHU3HUVRQ WKH³SULPDU\REOLJRU´ LQDQ\PDQQHU 


 
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³*XDUDQWHH´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³+D]DUGRXV0DWHULDOV´PHDQVDOOH[SORVLYHRUUDGLRDFWLYHVXEVWDQFHVRUZDVWHVDQGDOO KD]DUGRXVRUWR[LFVXEVWDQFHVZDVWHVRURWKHUSROOXWDQWVLQFOXGLQJSHWUROHXPRUSHWUROHXP GLVWLOODWHVDVEHVWRVRUDVEHVWRVFRQWDLQLQJPDWHULDOVSRO\FKORULQDWHGELSKHQ\OVUDGRQJDV LQIHFWLRXVRUPHGLFDOZDVWHVPROGIXQJLRUVLPLODUEDFWHULDDQGDOORWKHUVXEVWDQFHVRUZDVWHV RIDQ\QDWXUHUHJXODWHGSXUVXDQWWRDQ\(QYLURQPHQWDO/DZLQFOXGLQJDQ\PDWHULDOOLVWHGDVD KD]DUGRXVVXEVWDQFHXQGHU6HFWLRQ  RI&(5&/$ ³+HGJLQJ$JUHHPHQW´PHDQVDQ\LQWHUHVWUDWHSURWHFWLRQDJUHHPHQWLQWHUHVWUDWHVZDS DJUHHPHQWLQWHUHVWUDWHFDSDJUHHPHQWLQWHUHVWUDWHFROODUDJUHHPHQWIRUHLJQFXUUHQF\H[FKDQJH DJUHHPHQWFRPPRGLW\SULFHSURWHFWLRQDJUHHPHQWRURWKHULQWHUHVWRUFXUUHQF\H[FKDQJHUDWHRU FRPPRGLW\SULFHKHGJLQJDUUDQJHPHQWGHVLJQHGWRKHGJHDJDLQVWIOXFWXDWLRQVLQLQWHUHVWUDWHVRU IRUHLJQH[FKDQJHUDWHV ³,QFUHDVHG3UR)RUPD$YDLODELOLW\&RQGLWLRQ´VKDOOPHDQIRUDQ\GDWHRIFDOFXODWLRQ ZLWKUHVSHFWWRDQ\SD\PHQWWKH3UR)RUPD([FHVV$YDLODELOLW\IROORZLQJDQGDIWHUJLYLQJ HIIHFWWRVXFKWUDQVDFWLRQRUSD\PHQWZLOOEHHTXDOWRRUJUHDWHUWKDQWZHQW\ILYHSHUFHQW  RIWKH$GMXVWHG&RPELQHG/RDQ&DS ³,QFUHPHQWDO5HYROYLQJ/RDQ&RPPLWPHQW5HTXLUHPHQWV´PHDQVZLWKUHVSHFWWRDQ\ UHTXHVWIRUD5HYROYLQJ/RDQ&RPPLWPHQW,QFUHDVHPDGHSXUVXDQWWR6HFWLRQRUDQ\ SURYLVLRQRID5HYROYLQJ/RDQ&RPPLWPHQW,QFUHDVHRQDJLYHQ5HYROYLQJ/RDQ&RPPLWPHQW ,QFUHDVH'DWHWKHVDWLVIDFWLRQRIHDFKRIWKHIROORZLQJFRQGLWLRQV L QR'HIDXOWRU(YHQWRI 'HIDXOWWKHQH[LVWVDQG LL WKH%RUURZHUKDVQRWWKHUHWRIRUHUHGXFHGWKH5HYROYLQJ/RDQ &RPPLWPHQWVSXUVXDQWWR6HFWLRQKHUHRI ³,QGHEWHGQHVV´RIDQ\3HUVRQPHDQVZLWKRXWGXSOLFDWLRQ D DOOREOLJDWLRQVRIVXFK 3HUVRQIRUERUURZHGPRQH\ LQFOXGLQJDQ\REOLJDWLRQVZKLFKDUHZLWKRXWUHFRXUVHWRWKHFUHGLW RIVXFK3HUVRQ RUZLWKUHVSHFWWRGHSRVLWVRUDGYDQFHVRIDQ\NLQG E DOOREOLJDWLRQVRIVXFK 3HUVRQHYLGHQFHGE\ERQGVGHEHQWXUHVQRWHVRUVLPLODULQVWUXPHQWV F DOOREOLJDWLRQVRIVXFK 


 
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¶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¶VRZQHUVKLSLQWHUHVWLQRURWKHUUHODWLRQVKLSZLWKVXFKHQWLW\H[FHSWWRWKHH[WHQW WKHWHUPVRIVXFK,QGHEWHGQHVVSURYLGHWKDWVXFK3HUVRQLVQRWOLDEOHWKHUHIRU ³,QGHPQLILHG7D[HV´PHDQV7D[HVRWKHUWKDQ([FOXGHG7D[HV ³,QGHPQLWHH´KDVWKHPHDQLQJSURYLGHGWKHUHIRULQ6HFWLRQ E  ³,QLWLDO/HQGHU´PHDQVHDFKRI:HOOV)DUJR%DQNRI$PHULFD-30RUJDQ&KDVHDQG 5HJLRQV%DQN ³,QVROYHQF\,QFUHDVH$PRXQW´PHDQVDWDQ\WLPHRIGHWHUPLQDWLRQWHQSHUFHQW   SHUFHQWRIWKHVXPRI D WKH5HYROYLQJ/RDQ%RUURZLQJ%DVHPLQXVDOORXWVWDQGLQJ3HUPLWWHG 2YHUDGYDQFHVRWKHUWKDQ L 8QLQWHQWLRQDO2YHUDGYDQFHVDQG LL 3HUPLWWHG2YHUDGYDQFHVPDGH WRSD\XSWRWZR  ZHHNVRISD\UROOH[SHQVHVRIWKH/RDQ3DUWLHVWRWKHH[WHQWDFWXDOO\XVHGIRU VXFKSXUSRVHEXWLQQRHYHQWWRH[FHHG DVWRDOOVXFK3HUPLWWHG2YHUDGYDQFHVRWKHUWKDQ 8QLQWHQWLRQDO2YHUDGYDQFHV DQDPRXQWHTXDOWRRIWKHVXPRIWKH5HYROYLQJ/RDQ %RUURZLQJ%DVHDQGWKH7HUP/RDQ%RUURZLQJ%DVHDQG E WKH7HUP/RDQ%RUURZLQJ%DVH ³,QWHOOHFWXDO3URSHUW\´KDVWKHPHDQLQJDVVLJQHGWRVXFKWHUPLQWKH,QWHOOHFWXDO3URSHUW\ 6HFXULW\$JUHHPHQW ³,QWHOOHFWXDO3URSHUW\6HFXULW\$JUHHPHQW´PHDQVWKH,QWHOOHFWXDO3URSHUW\6HFXULW\ $JUHHPHQWGDWHGDVRIWKH7KLUG$PHQGPHQW(IIHFWLYH'DWHDPRQJWKH/RDQ3DUWLHVDQGWKH &ROODWHUDO$JHQWIRUWKHEHQHILWRIWKH&UHGLW3DUWLHVDVDPHQGHGDQGLQHIIHFWIURPWLPHWRWLPH 


 
³,QWHUFUHGLWRU$JUHHPHQW´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³,QWHUHVW3D\PHQW'DWH´PHDQV D ZLWKUHVSHFWWRDQ\3ULPH5DWH/RDQ LQFOXGLQJD 6ZLQJOLQH/RDQ DQGWKH7HUP/RDQVWKHILUVWGD\RIHDFKFDOHQGDUPRQWKDQG E ZLWKUHVSHFW WRDQ\/,%2/RDQRQWKHODVWGD\RIWKH,QWHUHVW3HULRGDSSOLFDEOHWRWKH%RUURZLQJRIZKLFK VXFK/RDQLVDSDUWDQGLQDGGLWLRQLIVXFK/,%2/RDQKDVDQ,QWHUHVW3HULRGRIJUHDWHUWKDQ QLQHW\  GD\VRQWKHODVWGD\RIWKHWKLUGPRQWKRIVXFK,QWHUHVW3HULRG ³,QWHUHVW3HULRG´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³,QYHQWRU\´KDVWKHPHDQLQJDVVLJQHGWRVXFKWHUPLQWKH6HFXULW\$JUHHPHQW ³,QYHQWRU\5HVHUYHV´PHDQVVXFKUHVHUYHVDVPD\EHHVWDEOLVKHGIURPWLPHWRWLPHE\ WKH$GPLQLVWUDWLYH$JHQWLQWKH$GPLQLVWUDWLYH$JHQW¶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


 
³,QYHVWPHQW´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³,63´PHDQVZLWKUHVSHFWWRDQ\/HWWHURI&UHGLWWKH,QWHUQDWLRQDO6WDQGE\3UDFWLFHV  ,QWHUQDWLRQDO&KDPEHURI&RPPHUFH3XEOLFDWLRQ1R DQGDQ\VXEVHTXHQWUHYLVLRQ WKHUHRIDGRSWHGE\WKH,QWHUQDWLRQDO&KDPEHURI&RPPHUFHRQWKHGDWHVXFK/HWWHURI&UHGLWLV LVVXHG ³,VVXHU'RFXPHQWV´PHDQVZLWKUHVSHFWWRDQ\/HWWHURI&UHGLWWKH/HWWHU&UHGLW $SSOLFDWLRQWKH6WDQGE\/HWWHURI&UHGLW$JUHHPHQWRU&RPPHUFLDO/HWWHURI&UHGLW$JUHHPHQW DVDSSOLFDEOHDQGDQ\RWKHUGRFXPHQWDJUHHPHQWDQGLQVWUXPHQWHQWHUHGLQWRE\WKH,VVXLQJ %DQNDQGWKH%RUURZHU RUDQ\6XEVLGLDU\ RULQIDYRURIWKH,VVXLQJ%DQNDQGUHODWLQJWRDQ\ VXFK/HWWHURI&UHGLW ³,VVXLQJ%DQN´PHDQVHDFK,QLWLDO/HQGHULQLWVFDSDFLW\DVWKHLVVXHURI/HWWHUVRI&UHGLW KHUHXQGHUDQGDQ\VXFFHVVRU EXWQRWDQ\DVVLJQHH WRVXFK,QLWLDO/HQGHULQVXFKFDSDFLW\7KH ,VVXLQJ%DQNPD\LQLWVGLVFUHWLRQDUUDQJHIRURQHRUPRUH/HWWHUVRI&UHGLWWREHLVVXHGE\ $IILOLDWHVRIWKH,VVXLQJ%DQNLQZKLFKFDVHWKHWHUP³,VVXLQJ%DQN´VKDOOLQFOXGHDQ\VXFK $IILOLDWHZLWKUHVSHFWWR/HWWHUVRI&UHGLWLVVXHGE\VXFK$IILOLDWH ³-30RUJDQ&KDVH´PHDQV-30RUJDQ&KDVH%DQN1$DQDWLRQDOEDQNLQJDVVRFLDWLRQ ³/&'LVEXUVHPHQW´PHDQVDSD\PHQWPDGHE\WKH,VVXLQJ%DQNSXUVXDQWWRD/HWWHURI &UHGLW ³/&%DQN2EOLJDWLRQV´PHDQVDWDQ\GDWHRIGHWHUPLQDWLRQWKHDJJUHJDWHXQGUDZQ DPRXQWDYDLODEOHWREHGUDZQXQGHUDOORXWVWDQGLQJ/HWWHUVRI&UHGLW)RUSXUSRVHVRIFRPSXWLQJ WKHDPRXQWVDYDLODEOHWREHGUDZQXQGHUDQ\/HWWHURI&UHGLWWKHDPRXQWRIVXFK/HWWHURI &UHGLWVKDOOEHGHWHUPLQHGLQDFFRUGDQFHZLWK6HFWLRQ)RUDOOSXUSRVHVRIWKLV$JUHHPHQW LIRQDQ\GDWHRIGHWHUPLQDWLRQD/HWWHURI&UHGLWKDVH[SLUHGE\LWVWHUPVEXWDQ\DPRXQWPD\ VWLOOEHGUDZQWKHUHXQGHUE\UHDVRQRIWKHRSHUDWLRQRIDQ\5XOHXQGHUWKH,63RUDQ\DUWLFOHRI WKH8&3VXFK/HWWHURI&UHGLWVKDOOEHGHHPHGWREH³RXWVWDQGLQJ´LQWKHDPRXQWVRUHPDLQLQJ DYDLODEOHWREHGUDZQ ³/HDVH´PHDQVDQ\DJUHHPHQWZKHWKHUZULWWHQRURUDOQRPDWWHUKRZVW\OHGRU VWUXFWXUHGSXUVXDQWWRZKLFKWKH%RUURZHURUDQ\RILWV$IILOLDWHVDUHHQWLWOHGWRWKHXVHRU RFFXSDQF\RIDQ\VSDFHLQDVWUXFWXUHODQGLPSURYHPHQWVRUSUHPLVHVIRUDQ\SHULRGRIWLPH ³/HQGHUV´VKDOOPHDQWKH3HUVRQVLGHQWLILHGRQ6FKHGXOHKHUHWRDVPRGLILHGWR LQFOXGHDQ\$GGLWLRQDO5HYROYLQJ/RDQ&RPPLWPHQW/HQGHUDQGRU$GGLWLRQDO7HUP/RDQ 


 
&RPPLWPHQW/HQGHUDVDSSOLFDEOHDQGHDFKDVVLJQHHWKDWEHFRPHVDSDUW\WRWKLV$JUHHPHQWDV VHWIRUWKLQ6HFWLRQ E  ³/HWWHURI&UHGLW´PHDQVDQDPRXQWHTXDOWR7KHWHUP³/HWWHURI&UHGLW´ VKDOOLQFOXGHWKH([LVWLQJ/HWWHUVRI&UHGLWHDFKOHWWHURIFUHGLWLVVXHGRUGHHPHGLVVXHGSXUVXDQW WRWKLV$JUHHPHQWLQDQDJJUHJDWHRXWVWDQGLQJSULQFLSDODPRXQWDVWRDOOVXFKOHWWHUVRIFUHGLW QRWLQH[FHVVRIWKH/HWWHURI&UHGLW6XEOLPLW ³/HWWHURI&UHGLW$SSOLFDWLRQ´PHDQVDQDSSOLFDWLRQDQGDJUHHPHQWIRUWKHLVVXDQFHRU DPHQGPHQWRID/HWWHURI&UHGLWLQWKHIRUPIURPWLPHWRWLPHLQXVHE\WKH,VVXLQJ%DQN ³/HWWHURI&UHGLW)HHV´VKDOOPHDQWKHIHHVSD\DEOHLQUHVSHFWRI/HWWHUVRI&UHGLW SXUVXDQWWR6HFWLRQ ³/HWWHURI&UHGLW,QGHPQLILHG&RVWV´KDVWKHPHDQLQJVSHFLILHGLQ6HFWLRQ ³/HWWHURI&UHGLW2XWVWDQGLQJV´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³RXWVWDQGLQJ´LQWKHDPRXQWVRUHPDLQLQJDYDLODEOHWREHGUDZQ ³/HWWHURI&UHGLW$SSOLFDWLRQ´PHDQVDQDSSOLFDWLRQIRUWKHLVVXDQFHRUDPHQGPHQWRID /HWWHURI&UHGLWLQWKHIRUPIURPWLPHWRWLPHLQXVHE\WKH,VVXLQJ%DQN ³/HWWHURI&UHGLW,QGHPQLILHG&RVWV´KDVWKHPHDQLQJVSHFLILHGLQ6HFWLRQ ³/HWWHURI&UHGLW5HODWHG3HUVRQ´KDVWKHPHDQLQJVSHFLILHGLQ6HFWLRQ ³/HWWHURI&UHGLW6XEOLPLW´PHDQVDQDPRXQWHTXDOWR7KH /HWWHURI&UHGLW6XEOLPLWLVSDUWRIDQGQRWLQDGGLWLRQWRWKH7RWDO$GMXVWHG5HYROYLQJ/RDQ &RPPLWPHQWV$SHUPDQHQWUHGXFWLRQRIWKH7RWDO$JJUHJDWH5HYROYLQJ/RDQ&RPPLWPHQWV VKDOOQRWUHTXLUHDFRUUHVSRQGLQJSURUDWDUHGXFWLRQLQWKH/HWWHURI&UHGLW6XEOLPLWSURYLGHG KRZHYHUWKDWLIWKH7RWDO$JJUHJDWH5HYROYLQJ/RDQ&RPPLWPHQWVDUHUHGXFHGWRDQDPRXQW OHVVWKDQWKH/HWWHURI&UHGLW6XEOLPLWWKHQWKH/HWWHURI&UHGLW6XEOLPLWVKDOOEHUHGXFHGWRDQ DPRXQWHTXDOWR RUDW%RUURZHU¶VRSWLRQOHVVWKDQ WKH7RWDO$JJUHJDWH5HYROYLQJ/RDQ &RPPLWPHQWV ³/,%2%RUURZLQJ´VKDOOPHDQD%RUURZLQJFRPSULVHGRI/,%2/RDQV ³/,%2/RDQ´VKDOOPHDQDQ\/RDQEHDULQJLQWHUHVWDWDUDWHGHWHUPLQHGE\UHIHUHQFHWR WKH$GMXVWHG/,%25DWHLQDFFRUGDQFHZLWKWKHSURYLVLRQVRI$UWLFOH,, 


 
³/,%25DWH´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³/,%25DWH´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³/LHQ´PHDQVZLWKUHVSHFWWRDQ\DVVHW D DQ\PRUWJDJHGHHGRIWUXVWOLHQSOHGJH K\SRWKHFDWLRQHQFXPEUDQFHFKDUJHRUVHFXULW\LQWHUHVWLQRQRURIVXFKDVVHW E WKHLQWHUHVWRI DYHQGRURUDOHVVRUXQGHUDQ\FRQGLWLRQDOVDOHDJUHHPHQWFDSLWDOOHDVHRUWLWOHUHWHQWLRQ DJUHHPHQW RUDQ\ILQDQFLQJOHDVHKDYLQJVXEVWDQWLDOO\WKHVDPHHFRQRPLFHIIHFWDVDQ\RIWKH IRUHJRLQJ UHODWLQJWRVXFKDVVHWDQG F LQWKHFDVHRIVHFXULWLHVDQ\SXUFKDVHRSWLRQFDOORU VLPLODUULJKWRIDWKLUGSDUW\ZLWKUHVSHFWWRVXFKVHFXULWLHV ³/LTXLGDWLRQ´PHDQVWKHH[HUFLVHE\WKH$GPLQLVWUDWLYH$JHQWRU&ROODWHUDO$JHQWRI WKRVHULJKWVDQGUHPHGLHVDIIRUGHGWRVXFK$JHQWVWKHPXQGHUWKH/RDQ'RFXPHQWVDQG $SSOLFDEOH/DZDVDFUHGLWRURIWKH/RDQ3DUWLHVZLWKUHVSHFWWRWKHUHDOL]DWLRQRQWKH&ROODWHUDO LQFOXGLQJ DIWHUWKHRFFXUUHQFHDQGGXULQJWKHFRQWLQXDWLRQRIDQ(YHQWRI'HIDXOW WKHFRQGXFW E\WKH/RDQ3DUWLHVDFWLQJZLWKWKHFRQVHQWRIWKH$GPLQLVWUDWLYH$JHQWRIDQ\SXEOLFSULYDWHRU ³JRLQJRXWRIEXVLQHVV´³VWRUHFORVLQJ´RURWKHUVLPLODUVDOHRUDQ\RWKHUGLVSRVLWLRQRIWKH &ROODWHUDOIRUWKHSXUSRVHRIOLTXLGDWLQJWKH&ROODWHUDO'HULYDWLRQVRIWKHZRUG³/LTXLGDWLRQ´ VXFKDV³/LTXLGDWH´ DUHXVHGZLWKOLNHPHDQLQJLQWKLV$JUHHPHQW ³/RDQ$FFRXQW´KDVWKHPHDQLQJJLYHQWRVXFKWHUPLQ6HFWLRQ D  ³/RDQ&DS´PHDQVDWDQ\WLPHRIGHWHUPLQDWLRQWKHOHVVHURI D WKH$GMXVWHG7RWDO &RPPLWPHQWVRU E WKH%RUURZLQJ%DVH 


 
³/RDQ'RFXPHQWV´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³/RDQ3DUW\´RU³/RDQ3DUWLHV´PHDQVWKH%RUURZHUDQGWKH)DFLOLW\*XDUDQWRUV ³/RDQV´VKDOOPHDQDOOORDQV LQFOXGLQJ5HYROYLQJ/RDQV7HUP/RDQVDQG6ZLQJOLQH /RDQV DWDQ\WLPHPDGHWRWKH%RUURZHURUIRUDFFRXQWRIWKH%RUURZHUSXUVXDQWWRWKLV $JUHHPHQW ³/RQGRQ%XVLQHVV'D\´PHDQVDGD\RQZKLFKFRPPHUFLDOEDQNVDUHRSHQIRUJHQHUDO EXVLQHVV LQFOXGLQJGHDOLQJVLQIRUHLJQH[FKDQJHDQGIRUHLJQFXUUHQF\GHSRVLWV LQ/RQGRQ (QJODQG ³0DUJLQ6WRFN´KDVWKHPHDQLQJDVVLJQHGWRVXFKWHUPLQ5HJXODWLRQ8 ³0DWHULDO$GYHUVH(IIHFW´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³0DWHULDO,QGHEWHGQHVV´PHDQV,QGHEWHGQHVV RWKHUWKDQWKH/RDQV/HWWHUVRI&UHGLWDQG REOLJDWLRQVXQGHU/HDVHV RIWKH%RUURZHULQDQDJJUHJDWHSULQFLSDODPRXQWH[FHHGLQJ )RUSXUSRVHVRIGHWHUPLQLQJWKHDPRXQWRI0DWHULDO,QGHEWHGQHVVDWDQ\WLPHWKH DPRXQWRIWKHREOLJDWLRQVLQUHVSHFWRIDQ\+HGJLQJ$JUHHPHQWDWVXFKWLPHVKDOOEH$JUHHPHQW 9DOXH ³0DWXULW\'DWH´PHDQV'HFHPEHU ³0D[LPXP5DWH´KDVWKHPHDQLQJSURYLGHGWKHUHIRULQ6HFWLRQ ³0HDVXUHPHQW3HULRG´PHDQVDWDQ\GDWHRIGHWHUPLQDWLRQWKHPRVWUHFHQWO\FRPSOHWHG WZHOYH)LVFDO0RQWKVRIWKH3DUHQW ³0LQRULW\/HQGHUV´KDVWKHPHDQLQJSURYLGHGWKHUHIRULQ6HFWLRQ F  


 
³0/3)6´PHDQV0HUULOO/\QFK3LHUFH)HQQHU 6PLWK,QFRUSRUDWHG ³0RRG\¶V´PHDQV0RRG\¶V,QYHVWRUV6HUYLFH,QF ³0XOWLHPSOR\HU3ODQ´PHDQVDPXOWLHPSOR\HUSODQDVGHILQHGLQ6HFWLRQ D  RI (5,6$WRZKLFKWKH3DUHQWRUDQ\(5,6$$IILOLDWHLVPDNLQJRUDFFUXLQJDQREOLJDWLRQWRPDNH FRQWULEXWLRQVRUKDVZLWKLQWKHSUHFHGLQJILYH  SODQ\HDUVPDGHRUDFFUXHGDQREOLJDWLRQWR PDNHFRQWULEXWLRQV ³0XOWLSOH(PSOR\HU3ODQ´PHDQVDVLQJOHHPSOR\HUSODQDVGHILQHGLQ6HFWLRQ  D  RI(5,6$WKDW D LVPDLQWDLQHGIRUHPSOR\HHVRIWKH3DUHQWRUDQ\RILWV 6XEVLGLDULHVRUDQ\(5,6$$IILOLDWHDQGDWOHDVWRQH3HUVRQRWKHUWKDQWKH3DUHQWDQ\6XEVLGLDU\ RUWKH(5,6$$IILOLDWHRU E ZDVVRPDLQWDLQHGDQGLQUHVSHFWRIZKLFKWKH3DUHQWDQ\ 6XEVLGLDU\RUDQ\(5,6$$IILOLDWHFRXOGKDYHOLDELOLW\XQGHU6HFWLRQRURI(5,6$LQ WKHHYHQWVXFKSODQKDVEHHQRUZHUHWREHWHUPLQDWHG ³1HW3URFHHGV´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³1RQ'HOLQTXHQW/HQGHU´PHDQVHDFK/HQGHURWKHUWKDQD'HOLQTXHQW/HQGHU ³1RWHV´VKDOOPHDQ D WKHSURPLVVRU\QRWHVRIWKH%RUURZHUVXEVWDQWLDOO\LQWKHIRUPRI ([KLELW%HDFKSD\DEOHWRWKHRUGHURIDQ\5HYROYLQJ/RDQ/HQGHUUHTXHVWLQJVXFK1RWH HYLGHQFLQJWKH5HYROYLQJ/RDQVDQG E LIUHTXHVWHGE\WKH6ZLQJOLQH/HQGHUWKHSURPLVVRU\ QRWHRIWKH%RUURZHUVXEVWDQWLDOO\LQWKHIRUPRI([KLELW%SD\DEOHWRWKH6ZLQJOLQH/HQGHU HYLGHQFLQJWKH6ZLQJOLQH/RDQVDQG F WKHSURPLVVRU\QRWHVRIWKH%RUURZHUVXEVWDQWLDOO\LQ WKHIRUPRI([KLELW%HDFKSD\DEOHWRWKHRUGHURIDQ\7HUP/RDQ/HQGHUUHTXHVWLQJVXFK 1RWHHYLGHQFLQJWKH7HUP/RDQ ³2EOLJDWLRQV´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³2)$&´PHDQVWKH2IILFHRI)RUHLJQ$VVHWV&RQWURORIWKH8QLWHG6WDWHV'HSDUWPHQWRI 7UHDVXU\ ³2UJDQL]DWLRQDO'RFXPHQW´PHDQVUHODWLYHWRDQ\/RDQ3DUW\LWVOLPLWHGSDUWQHUVKLS DJUHHPHQWLWVFHUWLILFDWHRILQFRUSRUDWLRQIRUPDWLRQRUOLPLWHGSDUWQHUVKLSLWVRSHUDWLQJ DJUHHPHQWLWVE\ODZVDQGDOOVKDUHKROGHURUHTXLW\KROGHUDJUHHPHQWVYRWLQJWUXVWVDQGVLPLODU DUUDQJHPHQWVWRZKLFKVXFK/RDQ3DUW\LVDSDUW\RUZKLFKLVDSSOLFDEOHWRLWVFDSLWDOVWRFNLWV OLPLWHGSDUWQHUVKLSDJUHHPHQWDQGDOORWKHUDUUDQJHPHQWVUHODWLQJWRWKHFRQWURORUPDQDJHPHQW RIVXFKHQWLW\ ³2WKHU7D[HV´PHDQVDQ\DQGDOOFXUUHQWRUIXWXUHVWDPSRUGRFXPHQWDU\7D[HVRUDQ\ RWKHUH[FLVHRUSURSHUW\7D[HVFKDUJHVRUVLPLODUOHYLHVDULVLQJIURPDQ\SD\PHQWPDGHXQGHU DQ\/RDQ'RFXPHQWRUIURPWKHH[HFXWLRQGHOLYHU\RUHQIRUFHPHQWRIRURWKHUZLVHZLWKUHVSHFW WRDQ\/RDQ'RFXPHQW ³2YHUDGYDQFH´PHDQVDWDQ\WLPHRIFDOFXODWLRQDFLUFXPVWDQFHLQZKLFKWKH&UHGLW ([WHQVLRQV H[FOXGLQJWKRVHPDGHLQUHVSHFWRIWKH7HUP/RDQ H[FHHGWKH5HYROYLQJ/RDQ&DS ³3DUHQW´PHDQV6WDJH6WRUHV,QFD1HYDGDFRUSRUDWLRQ ³3DUWLFLSDWLRQ5HJLVWHU´KDVWKHPHDQLQJSURYLGHGWKHUHIRULQ6HFWLRQ H  ³3D\PHQW&RQGLWLRQV´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


 
/HQGHUVHYLGHQFHRIVDWLVIDFWLRQRIWKHFRQGLWLRQVFRQWDLQHGLQFODXVH E DERYHZLWKUHVSHFWWR WKHUHSXUFKDVHRIWKHHTXLW\LQWHUHVWVRIWKH3DUHQWRQWKHRSHQPDUNHWLQWKHRUGLQDU\FRXUVHRI EXVLQHVV WKH³2UGLQDU\&RXUVH6WRFN%X\EDFNV´ SURYLGHGIXUWKHUWKDWQRWKLQJKHUHLQVKDOOEH GHHPHGDZDLYHURIWKHUHTXLUHPHQWVVHWIRUWKLQFODXVHV D DQG E DERYHDVDFRQGLWLRQWRWKH 3DUHQWPDNLQJDQ\2UGLQDU\&RXUVH6WRFN%X\EDFNVDQGWKHPDNLQJRIDQ\2UGLQDU\&RXUVH 6WRFN%X\EDFNVVKDOOEHGHHPHGDUHSUHVHQWDWLRQDQGZDUUDQW\E\WKH/RDQSDUWLHV3DUWLHVWKDW VXFKUHTXLUHPHQWVKDYHEHHQFRPSOLHGZLWK ³3D\PHQW,QWDQJLEOHV´KDVWKHPHDQLQJVHWIRUWKLQWKH8&&WRJHWKHUZLWKDOOLQFRPH SD\PHQWVDQGSURFHHGVWKHUHRIRZHGE\D&UHGLW&DUG,VVXHURU&UHGLW&DUG3URFHVVRUWRD/RDQ 3DUW\UHVXOWLQJIURPFKDUJHVE\DFXVWRPHURID/RDQ3DUW\RQFUHGLWRUGHELWFDUGVLVVXHGE\ VXFK&UHGLW&DUG,VVXHULQFRQQHFWLRQZLWKWKHVDOHRIJRRGVE\D/RDQ3DUW\RUVHUYLFHV SHUIRUPHGE\D/RDQ3DUW\LQHDFKFDVHLQWKHRUGLQDU\FRXUVHRILWVEXVLQHVV ³3%*&´PHDQVWKH3HQVLRQ%HQHILW*XDUDQW\&RUSRUDWLRQUHIHUUHGWRDQGGHILQHGLQ (5,6$DQGDQ\VXFFHVVRUHQWLW\SHUIRUPLQJVLPLODUIXQFWLRQV ³3HUIHFWLRQ&HUWLILFDWH´PHDQVDFHUWLILFDWHLQWKHIRUPRI$QQH[WRWKH6HFXULW\ $JUHHPHQWRUDQ\RWKHUIRUPDSSURYHGE\WKH&ROODWHUDO$JHQW ³3HUPLWWHG$FTXLVLWLRQ´PHDQVDQ,QYHVWPHQWLQDSXUFKDVHRIVWRFNRUHTXLW\LQWHUHVWLQ DSXUFKDVHRIDOORUDVXEVWDQWLDOSDUWRIWKHDVVHWVRUSURSHUWLHVRIDQ\3HUVRQDQ\H[FKDQJHRI VHFXULWLHVRUHTXLW\LQWHUHVWVZLWKDQ\3HUVRQDQ\WUDQVDFWLRQPHUJHURUFRQVROLGDWLRQRU DFTXLVLWLRQRIDOORUDVXEVWDQWLDOSRUWLRQRIWKHDVVHWVRIDQ\3HUVRQRUDQ\DFTXLVLWLRQRIDQ\ UHWDLOVWRUHORFDWLRQVRIDQ\3HUVRQ HDFKRIWKHIRUHJRLQJDQ³$FTXLVLWLRQ´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


 
I 7KH3D\PHQW&RQGLWLRQVVKDOOKDYHEHHQVDWLVILHGDQG J 6XFK$FTXLVLWLRQVKDOOKDYHEHHQDSSURYHGE\DPDMRULW\RIWKHERDUGRI GLUHFWRUV RUWKHHTXLYDOHQWJRYHUQLQJERG\ RIWKH3HUVRQZKLFKLVWKHVXEMHFWRIVXFK $FTXLVLWLRQDQGVXFK3HUVRQVKDOOQRWKDYHDQQRXQFHGWKDWLWZLOORSSRVHVXFK $FTXLVLWLRQRUVKDOOQRWKDYHFRPPHQFHGDQ\DFWLRQZKLFKDOOHJHVWKDWVXFK$FTXLVLWLRQ ZLOOYLRODWH$SSOLFDEOH/DZ ³3HUPLWWHG(QFXPEUDQFHV´PHDQV D /LHQVLPSRVHGE\ODZIRU7D[HVWKDWDUHQRW\HWGXHRUDUHEHLQJFRQWHVWHG LQFRPSOLDQFHZLWK6HFWLRQ E FDUULHUV¶ZDUHKRXVHPHQ¶VPHFKDQLFV¶PDWHULDOPHQ¶VUHSDLUPHQ¶VDQG RWKHUOLNH/LHQVLPSRVHGE\ODZDULVLQJLQWKHRUGLQDU\FRXUVHRIEXVLQHVVDQGVHFXULQJ REOLJDWLRQVWKDWDUHQRWRYHUGXHE\PRUHWKDQWKLUW\  GD\VRUDUHEHLQJFRQWHVWHGLQ FRPSOLDQFHZLWK6HFWLRQ F L SOHGJHVDQGGHSRVLWVPDGHLQWKHRUGLQDU\FRXUVHRIEXVLQHVVLQ FRPSOLDQFHZLWKZRUNHUV¶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³3HUPLWWHG(QFXPEUDQFHV´VKDOOQRWLQFOXGHDQ\/LHQVHFXULQJ,QGHEWHGQHVV ³3HUPLWWHG,QYHVWPHQWV´PHDQVHDFKRIWKHIROORZLQJ D GLUHFWREOLJDWLRQVRIRUREOLJDWLRQVWKHSULQFLSDORIDQGLQWHUHVWRQZKLFK DUHXQFRQGLWLRQDOO\JXDUDQWHHGE\WKH8QLWHG6WDWHVRI$PHULFD RUE\DQ\DJHQF\ WKHUHRIWRWKHH[WHQWVXFKREOLJDWLRQVDUHEDFNHGE\WKHIXOOIDLWKDQGFUHGLWRIWKH8QLWHG 


 
6WDWHVRI$PHULFD LQHDFKFDVHPDWXULQJZLWKLQQLQHW\  GD\VIURPWKHGDWHRI DFTXLVLWLRQWKHUHRI E ,QYHVWPHQWVLQFRPPHUFLDOSDSHU L LVVXHGE\DFRUSRUDWLRQ RWKHUWKDQD /RDQ3DUW\RUDQ$IILOLDWHRID/RDQ3DUW\ RUJDQL]HGXQGHUWKHODZVRIDQ\VWDWHRIWKH 8QLWHG6WDWHVRUWKH'LVWULFWRI&ROXPELDPDWXULQJZLWKLQQLQHW\  GD\VIURPWKHGDWH RIDFTXLVLWLRQWKHUHRIDQGKDYLQJDWVXFKGDWHRIDFTXLVLWLRQWKHKLJKHVWFUHGLWUDWLQJ REWDLQDEOHIURP6 30RRG\¶VRU)LWFKRU LL LVVXHGE\D/HQGHUPDWXULQJZLWKLQ GD\VIURPWKHGDWHRIDFTXLVLWLRQWKHUHRI F ,QYHVWPHQWVLQLQVXUHGFHUWLILFDWHVRIGHSRVLWEDQNHU¶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provided thatQRWZLWKVWDQGLQJWKHIRUHJRLQJQRVXFK,QYHVWPHQWVVKDOOEHSHUPLWWHGWR FRPPHQFH L DIWHUWKHRFFXUUHQFHRID&DVK'RPLQLRQ(YHQWXQOHVVQR/RDQVDUHWKHQ RXWVWDQGLQJDQG LL XQOHVVVXFK,QYHVWPHQWVDUHSOHGJHGWRWKH&ROODWHUDO$JHQWDVDGGLWLRQDO FROODWHUDOIRUWKH2EOLJDWLRQVSXUVXDQWWRVXFKDJUHHPHQWVDVPD\EHUHDVRQDEO\UHTXLUHGE\WKH &ROODWHUDO$JHQW ³3HUPLWWHG2YHUDGYDQFH´PHDQVDQ2YHUDGYDQFHGHWHUPLQHGE\WKH$GPLQLVWUDWLYH $JHQWLQLWVUHDVRQDEOHGLVFUHWLRQ D ZKLFKLVPDGHWRPDLQWDLQSURWHFWRUSUHVHUYHWKH &ROODWHUDODQGRUWKH/HQGHUV¶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


 
/RDQ/HQGHUV¶REOLJDWLRQVZLWKUHVSHFWWR/&'LVEXUVHPHQWVRUWKHSURYLVLRQVRI6HFWLRQV DQGUHJDUGLQJWKH5HYROYLQJ/RDQ/HQGHUV¶REOLJDWLRQVZLWKUHVSHFWWR6ZLQJOLQH/RDQVRU  UHVXOWLQDQ\FODLPRUOLDELOLW\DJDLQVWWKH$GPLQLVWUDWLYH$JHQW UHJDUGOHVVRIWKHDPRXQWRI DQ\2YHUDGYDQFH IRU³LQDGYHUWHQW2YHUDGYDQFHV´ LHZKHUHDQ2YHUDGYDQFHUHVXOWVIURP FKDQJHGFLUFXPVWDQFHVEH\RQGWKHFRQWURORIWKH$GPLQLVWUDWLYH$JHQW VXFKDVDUHGXFWLRQLQ WKHFROODWHUDOYDOXH DQGIXUWKHUSURYLGHGWKDWLQQRHYHQWVKDOOWKH$GPLQLVWUDWLYH$JHQWPDNH DQ2YHUDGYDQFHLIDIWHUJLYLQJHIIHFWWKHUHWRWKHSULQFLSDODPRXQWRIWKH&UHGLW([WHQVLRQV LQFOXGLQJDQ\2YHUDGYDQFHRUSURSRVHG2YHUDGYDQFHEXWH[FOXGLQJWKRVHPDGHLQUHVSHFWRI WKH7HUP/RDQ ZRXOGH[FHHGWKH$GMXVWHG5HYROYLQJ/RDQ&RPPLWPHQWV ³3HUVRQ´PHDQVDQ\QDWXUDOSHUVRQFRUSRUDWLRQOLPLWHGOLDELOLW\FRPSDQ\WUXVWMRLQW YHQWXUHDVVRFLDWLRQFRPSDQ\SDUWQHUVKLS*RYHUQPHQWDO$XWKRULW\RURWKHUHQWLW\ ³3ODQ´PHDQVD6LQJOH(PSOR\HU3ODQRUD0XOWLSOH(PSOR\HU3ODQ ³3RUWDO´KDVWKHPHDQLQJVSHFLILHGLQ6HFWLRQ ³3ULPH5DWH´VKDOOPHDQIRUDQ\GD\DIOXFWXDWLQJUDWHSHUDQQXPHTXDOWRWKHKLJKHVWRI D WKHUDWHRILQWHUHVWLQHIIHFWIRUVXFKGD\DVSXEOLFO\DQQRXQFHGIURPWLPHWRWLPHE\:HOOV )DUJRDVLWV³SULPHUDWH´ E WKH)HGHUDO)XQGV(IIHFWLYH5DWHIRUVXFKGD\SOXVDQG F E WKH$GMXVWHG/,%25DWHIRUDGD\LQWHUHVWSHULRGDVGHWHUPLQHGRQVXFKGD\SOXV DQG F WKHUDWHRILQWHUHVWDQQRXQFHGIURPWLPHWRWLPHZLWKLQ:HOOV)DUJRDWLWVSULQFLSDO RIILFHLQ6DQ)UDQFLVFRDVLWV³SULPHUDWH´ZLWKWKHXQGHUVWDQGLQJWKDWWKH³SULPHUDWH´LVRQHRI :HOOV)DUJR¶VEDVHUDWHV QRWQHFHVVDULO\WKHORZHVWRIVXFKUDWHV DQGVHUYHVDVWKHEDVLVXSRQ ZKLFKHIIHFWLYHUDWHVRILQWHUHVWDUHFDOFXODWHGIRUWKRVHORDQVPDNLQJUHIHUHQFHWKHUHWRDQGLV HYLGHQFHGE\WKHUHFRUGLQJWKHUHRIDIWHULWVDQQRXQFHPHQWLQVXFKLQWHUQDOSXEOLFDWLRQVDV:HOOV )DUJRPD\GHVLJQDWH DQGLIDQ\VXFKDQQRXQFHGUDWHLVEHORZ]HURWKHQWKHUDWHGHWHUPLQHG SXUVXDQWWRWKLVFODXVH F VKDOOEHGHHPHGWREH]HUR 7KH³SULPHUDWH´LVDUDWHVHWE\:HOOV )DUJREDVHGXSRQYDULRXVIDFWRUVLQFOXGLQJ:HOOV)DUJR¶VFRVWVDQGGHVLUHGUHWXUQJHQHUDO HFRQRPLFFRQGLWLRQVDQGRWKHUIDFWRUVDQGLVXVHGDVDUHIHUHQFHSRLQWIRUSULFLQJVRPHORDQV ZKLFKPD\EHSULFHGDWDERYHRUEHORZVXFKDQQRXQFHGUDWH$Q\FKDQJHLQ:HOOV)DUJR¶V SULPHUDWHWKH)HGHUDO)XQGV(IIHFWLYH5DWHRUWKH/,%25DWHUHVSHFWLYHO\VKDOOWDNHHIIHFWDW WKHRSHQLQJRIEXVLQHVVRQWKHGD\VSHFLILHGLQWKHSXEOLFDQQRXQFHPHQWRIVXFKFKDQJH ³3ULPH5DWH/RDQ´VKDOOPHDQDQ\/RDQEHDULQJLQWHUHVWDWDUDWHGHWHUPLQHGE\ UHIHUHQFHWRWKH3ULPH5DWHLQDFFRUGDQFHZLWKWKHSURYLVLRQVRI$UWLFOH,, ³3UR)RUPD$YDLODELOLW\&RQGLWLRQ´VKDOOPHDQIRUDQ\GDWHRIFDOFXODWLRQZLWKUHVSHFW WRDQ\SD\PHQWWKH3UR)RUPD([FHVV$YDLODELOLW\IROORZLQJDQGDIWHUJLYLQJHIIHFWWRVXFK WUDQVDFWLRQRUSD\PHQWZLOOEHHTXDOWRRUJUHDWHUWKDQILIWHHQSHUFHQW  RIWKH$GMXVWHG &RPELQHG/RDQ&DS ³3UR)RUPD([FHVV$YDLODELOLW\´VKDOOPHDQIRUDQ\GDWHRIFDOFXODWLRQDIWHUJLYLQJSUR IRUPDHIIHFWWRWKHWUDQVDFWLRQWKHQWREHFRQVXPPDWHGWKHSURMHFWHG([FHVV$YDLODELOLW\DVRI WKHHQGRIHDFK)LVFDO0RQWKGXULQJDQ\VXEVHTXHQWSURMHFWHGVL[  )LVFDO0RQWKV 


 
³3URYLGHU´KDVWKHPHDQLQJVSHFLILHGLQ6HFWLRQ ³4XDOLILHG(&3*XDUDQWRU´PHDQVLQUHVSHFWRIDQ\6ZDS2EOLJDWLRQHDFK/RDQ3DUW\ WKDWKDVWRWDODVVHWVH[FHHGLQJDWWKHWLPHWKHUHOHYDQW*XDUDQWHHRUJUDQWRIWKH UHOHYDQWVHFXULW\LQWHUHVWEHFRPHVHIIHFWLYHZLWKUHVSHFWWRVXFK6ZDS2EOLJDWLRQRUVXFKRWKHU SHUVRQDVFRQVWLWXWHVDQ³HOLJLEOHFRQWUDFWSDUWLFLSDQW´XQGHUWKH&RPPRGLW\([FKDQJH$FWRU DQ\UHJXODWLRQVSURPXOJDWHGWKHUHXQGHUDQGFDQFDXVHDQRWKHUSHUVRQWRTXDOLI\DVDQ³HOLJLEOH FRQWUDFWSDUWLFLSDQW´DWVXFKWLPHE\HQWHULQJLQWRDNHHSZHOOXQGHU6HFWLRQD  $ Y ,, RI WKH&RPPRGLW\([FKDQJH$FW ³5HDO(VWDWH´PHDQVDOOODQGWRJHWKHUZLWKWKHEXLOGLQJVVWUXFWXUHVSDUNLQJDUHDVDQG RWKHULPSURYHPHQWVWKHUHRQQRZRUKHUHDIWHURZQHGE\DQ\/RDQ3DUW\LQFOXGLQJDOO HDVHPHQWVULJKWVRIZD\DQGVLPLODUULJKWVUHODWLQJWKHUHWRDQGDOOOHDVHVWHQDQFLHVDQG RFFXSDQFLHVWKHUHRI ³5HJLVWHU´KDVWKHPHDQLQJVHWIRUWKLQ6HFWLRQ F  ³5HJXODWLRQ8´PHDQV5HJXODWLRQ8RIWKH%RDUG)5%DVIURPWLPHWRWLPHLQHIIHFWDQG DOORIILFLDOUXOLQJVDQGLQWHUSUHWDWLRQVWKHUHXQGHURUWKHUHRI ³5HJXODWLRQ;´PHDQV5HJXODWLRQ;RIWKH%RDUG)5%DVIURPWLPHWRWLPHLQHIIHFWDQG DOORIILFLDOUXOLQJVDQGLQWHUSUHWDWLRQVWKHUHXQGHURUWKHUHRI ³5HODWHG3DUWLHV´PHDQVZLWKUHVSHFWWRDQ\VSHFLILHG3HUVRQVXFK3HUVRQ¶V$IILOLDWHV DQGWKHUHVSHFWLYHGLUHFWRUVRIILFHUVHPSOR\HHVDJHQWVDQGDGYLVRUVRIVXFK3HUVRQDQGVXFK 3HUVRQ¶V$IILOLDWHV ³5HOHDVH´KDVWKHPHDQLQJVHWIRUWKLQ6HFWLRQ  RI&(5&/$ ³5HTXLUHG/HQGHUV´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³5HTXLUHG5HYROYLQJ/RDQ/HQGHUV´VKDOOPHDQVXEMHFWWRWKHSURYLVLRQVRI6HFWLRQ DWDQ\WLPH5HYROYLQJ/RDQ/HQGHUVKDYLQJ5HYROYLQJ/RDQ&RPPLWPHQWVJUHDWHUWKDQ RIWKH$GMXVWHG5HYROYLQJ/RDQ&RPPLWPHQWVRULIWKH5HYROYLQJ/RDQ&RPPLWPHQWV KDYHEHHQWHUPLQDWHG/HQGHUVZKRVHSHUFHQWDJHRIWKHRXWVWDQGLQJ&UHGLW([WHQVLRQV DIWHU 


 
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³5HTXLUHG6XSHUPDMRULW\/HQGHUV´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³5HTXLUHG7HUP/RDQ/HQGHUV´PHDQVDVRIDQ\GDWHRIGHWHUPLQDWLRQ7HUP/RDQ /HQGHUVKROGLQJPRUHWKDQRIWKHWKHQDJJUHJDWHRXWVWDQGLQJSULQFLSDOEDODQFHRIWKH7HUP /RDQ ³5HVHUYHV´PHDQVDOO LIDQ\ ,QYHQWRU\5HVHUYHVDQG$YDLODELOLW\5HVHUYHV ³5HVSRQVLEOH2IILFHU´PHDQVWKHFKLHIH[HFXWLYHRIILFHUSUHVLGHQWFKLHIILQDQFLDO RIILFHUFRQWUROOHUWUHDVXUHURUDVVLVWDQWWUHDVXUHURID/RDQ3DUW\RUDQ\RIWKHRWKHULQGLYLGXDOV GHVLJQDWHGLQZULWLQJWRWKH$GPLQLVWUDWLYH$JHQWE\DQH[LVWLQJ5HVSRQVLEOH2IILFHURID/RDQ 3DUW\DVDQDXWKRUL]HGVLJQDWRU\RIDQ\FHUWLILFDWHRURWKHUGRFXPHQWWREHGHOLYHUHGKHUHXQGHU LQFOXGLQJZLWKUHVSHFWWRWKH3RUWDODQ\SHUVRQDXWKRUL]HGDQGDXWKHQWLFDWHGWKURXJKWKH3RUWDO LQDFFRUGDQFHZLWKWKH$GPLQLVWUDWLYH$JHQW¶VSURFHGXUHVIRUVXFKDXWKHQWLFDWLRQ$Q\ GRFXPHQWGHOLYHUHGKHUHXQGHUWKDWLVVLJQHGE\D5HVSRQVLEOH2IILFHURID/RDQ3DUW\VKDOOEH FRQFOXVLYHO\SUHVXPHGWRKDYHEHHQDXWKRUL]HGE\DOOQHFHVVDU\FRUSRUDWHSDUWQHUVKLSDQGRU RWKHUDFWLRQRQWKHSDUWRIVXFK/RDQ3DUW\DQGVXFK5HVSRQVLEOH2IILFHUVKDOOEHFRQFOXVLYHO\ SUHVXPHGWRKDYHDFWHGRQEHKDOIRIVXFK/RDQ3DUW\ ³5HVWULFWHG3D\PHQW´PHDQVDQ\GLYLGHQGRURWKHUGLVWULEXWLRQ ZKHWKHULQFDVK VHFXULWLHVRURWKHUSURSHUW\ ZLWKUHVSHFWWRDQ\VKDUHVRIDQ\FODVVRIFDSLWDOVWRFNRUHTXLW\ LQWHUHVWVRIDQ\/RDQ3DUW\RUDQ\6XEVLGLDU\RUDQ\SD\PHQW ZKHWKHULQFDVKVHFXULWLHVRU RWKHUSURSHUW\ LQFOXGLQJDQ\VLQNLQJIXQGRUVLPLODUGHSRVLWRQDFFRXQWRIWKHSXUFKDVH UHGHPSWLRQUHWLUHPHQWDFTXLVLWLRQFDQFHOODWLRQRUWHUPLQDWLRQRIDQ\VXFKVKDUHVRIFDSLWDO 


 
VWRFNRUHTXLW\LQWHUHVWVRIDQ\/RDQ3DUW\RUDQ\6XEVLGLDU\RUDQ\RSWLRQZDUUDQWRURWKHUULJKW WRDFTXLUHDQ\VXFKVKDUHVRIFDSLWDOVWRFNRUHTXLW\LQWHUHVWVRIDQ\/RDQ3DUW\RUDQ\ 6XEVLGLDU\:LWKRXWOLPLWLQJWKHIRUHJRLQJ³5HVWULFWHG3D\PHQWV´ZLWKUHVSHFWWRDQ\3HUVRQ VKDOODOVRLQFOXGHDOOSD\PHQWV ZKHWKHULQFDVKVHFXULWLHVRURWKHUSURSHUW\ PDGHE\VXFK 3HUVRQLQUHVSHFWRIVWRFNDSSUHFLDWLRQULJKWVSODQVHTXLW\LQFHQWLYHDFKLHYHPHQWRUVLPLODU SODQVDQGDOOSURFHHGVRIDGLVVROXWLRQRUOLTXLGDWLRQRIVXFK3HUVRQ ³5HXWHUV6FUHHQ/,%253DJH´PHDQVWKHGLVSOD\SDJH/,%25RQWKH5HXWHUV VHUYLFHRUDQ\VXFFHVVRUGLVSOD\SDJHRWKHUSXEOLVKHGVRXUFHLQIRUPDWLRQYHQGRURUSURYLGHU WKDWKDVEHHQGHVLJQDWHGE\WKHVSRQVRURI5HXWHUV6FUHHQ/,%25SDJH5HYROYLQJ/RDQ %RUURZLQJ%DVH´PHDQVDWDQ\WLPHRIFDOFXODWLRQDQDPRXQWHTXDOWR D WKH&UHGLW&DUG$GYDQFH5DWHmultiplied by WKHIDFHDPRXQWRI(OLJLEOH &UHGLW&DUG5HFHLYDEOHVSOXV E WKH$SSUDLVDO3HUFHQWDJHRIWKH$SSUDLVHG9DOXHRI(OLJLEOH,QYHQWRU\QHW RI,QYHQWRU\5HVHUYHVPLQXV F WKHWKHQDPRXQWRIWKH7HUP/RDQ5HVHUYHPLQXV G WKHWKHQDPRXQWRIDOORWKHU$YDLODELOLW\5HVHUYHV ³5HYROYLQJ/RDQ&DS´PHDQVDWDQ\WLPHRIGHWHUPLQDWLRQWKHOHVVHURI D WKH$GMXVWHG 5HYROYLQJ/RDQ&RPPLWPHQWVRU E WKH5HYROYLQJ/RDQ%RUURZLQJ%DVH ³5HYROYLQJ/RDQ&RPPLWPHQW´PHDQVZLWKUHVSHFWWRHDFK5HYROYLQJ/RDQ/HQGHUWKH DJJUHJDWHFRPPLWPHQWRIVXFK5HYROYLQJ/RDQ/HQGHUWRPDNH5HYROYLQJ/RDQVDQGSDUWLFLSDWH LQ/HWWHUVRI&UHGLWDQG6ZLQJOLQH/RDQVKHUHXQGHULQWKHDPRXQWVHWIRUWKRSSRVLWHLWVQDPH XQGHUWKHKHDGLQJ³5HYROYLQJ/RDQ&RPPLWPHQW´RQ6FKHGXOHKHUHWRRUDVPD\ VXEVHTXHQWO\EHVHWIRUWKLQWKH5HJLVWHUIURPWLPHWRWLPHDVWKHVDPHPD\EH L UHGXFHGIURP WLPHWRWLPHSXUVXDQWWR6HFWLRQRU LL LQFUHDVHGIURPWLPHWRWLPHSXUVXDQWWR6HFWLRQ KHUHRI ³5HYROYLQJ/RDQ&RPPLWPHQW,QFUHDVH´KDVWKHPHDQLQJSURYLGHGWKHUHIRULQ6HFWLRQ  D  ³5HYROYLQJ/RDQ&RPPLWPHQW,QFUHDVH'DWH´KDVWKHPHDQLQJSURYLGHGWKHUHIRULQ 6HFWLRQ F  ³5HYROYLQJ/RDQ&RPPLWPHQW3HUFHQWDJH´PHDQVZLWKUHVSHFWWRHDFK5HYROYLQJ/RDQ /HQGHUWKDWSHUFHQWDJHRIWKH$JJUHJDWH5HYROYLQJ/RDQ&RPPLWPHQWVLQWKHDPRXQWVHWIRUWK RSSRVLWHLWVQDPHRQ6FKHGXOHKHUHWRRUDVPD\VXEVHTXHQWO\EHVHWIRUWKLQWKH5HJLVWHU IURPWLPHWRWLPHDVWKHVDPHPD\EH L UHGXFHGIURPWLPHWRWLPHSXUVXDQWWR6HFWLRQRU LL LQFUHDVHGIURPWLPHWRWLPHSXUVXDQWWR6HFWLRQKHUHRI 


 
³5HYROYLQJ/RDQ/HQGHU´PHDQVHDFK/HQGHUKDYLQJD5HYROYLQJ/RDQ&RPPLWPHQWDV VHWIRUWKRQ6FKHGXOHKHUHWRRULQWKH$VVLJQPHQWDQG$FFHSWDQFHE\ZKLFKVXFK3HUVRQ EHFRPHVD5HYROYLQJ/RDQ/HQGHU ³5HYROYLQJ/RDQV´PHDQVDOO/RDQVDWDQ\WLPHPDGHE\D/HQGHUSXUVXDQWWR6HFWLRQ  D  ³5HYROYLQJ3ULRULW\&ROODWHUDO´PHDQVDOOQRZRZQHGRUKHUHDIWHUDFTXLUHG&ROODWHUDO RWKHUWKDQ7HUP/RDQ3ULRULW\&ROODWHUDO ³6DQFWLRQHG(QWLW\´PHDQV D DFRXQWU\RUDJRYHUQPHQWRIDFRXQWU\ E DQDJHQF\RI WKHJRYHUQPHQWRIDFRXQWU\ F DQRUJDQL]DWLRQGLUHFWO\RULQGLUHFWO\FRQWUROOHGE\DFRXQWU\RU LWVJRYHUQPHQWRU G D3HUVRQUHVLGHQWLQRUGHWHUPLQHGWREHUHVLGHQWLQDFRXQWU\LQHDFKFDVH RIFODXVHV D WKURXJK G WKDWLVWKHVXEMHFWRI6DQFWLRQVLQFOXGLQJWKHVXEMHFWRIDQ\FRXQWU\ VDQFWLRQVSURJUDPDGPLQLVWHUHGDQGHQIRUFHGE\2)$& ³6DQFWLRQHG3HUVRQ´PHDQVDWDQ\WLPH D DQ\D3HUVRQQDPHGRQWKHOLVWRI6SHFLDOO\ 'HVLJQDWHG1DWLRQDOVDQG%ORFNHG3HUVRQVPDLQWDLQHGE\2)$&RUDQ\RWKHU6DQFWLRQVUHODWHG OLVWPDLQWDLQHGE\DQ\UHOHYDQW6DQFWLRQVDXWKRULW\ E D3HUVRQRUOHJDOHQWLW\WKDWLVWKHVXEMHFW RI6DQFWLRQV F DQ\3HUVRQRSHUDWLQJRUJDQL]HGRUUHVLGHQWLQD6DQFWLRQHG(QWLW\RU G DQ\ 3HUVRQGLUHFWO\RULQGLUHFWO\RZQHGRUFRQWUROOHG LQGLYLGXDOO\RULQWKHDJJUHJDWH E\RUDFWLQJ RQEHKDOIRIDQ\VXFK3HUVRQRU3HUVRQVGHVFULEHGLQFODXVHV D WKURXJK F DERYH ³6DQFWLRQ V ´PHDQVLQGLYLGXDOO\DQGFROOHFWLYHO\UHVSHFWLYHO\DQ\DQGDOOHFRQRPLF WUDGHILQDQFLDORURWKHUVDQFWLRQVODZVUHJXODWLRQVRUHPEDUJRHVLPSRVHGDGPLQLVWHUHGRU HQIRUFHGIURPWLPHWRWLPHE\ D WKH8QLWHG6WDWHVRI$PHULFDLQFOXGLQJZLWKRXWOLPLWDWLRQ WKRVHDGPLQLVWHUHGE\2)$&DQGRUWKH86'HSDUWPHQWRI6WDWH E WKH8QLWHG1DWLRQV 6HFXULW\&RXQFLO F WKH(XURSHDQ8QLRQRUDQ\(XURSHDQ8QLRQPHPEHUVWDWH G +HU 0DMHVW\¶V7UHDVXU\RIWKH8QLWHG.LQJGRPRU G DQ\RWKHUJRYHUQPHQWDODXWKRULW\LQDQ\ MXULVGLFWLRQLQZKLFKDQ\/RDQ3DUW\RUDQ\RILWV6XEVLGLDULHVLVORFDWHGRUGRLQJEXVLQHVV ³6HDVRQDO&RPPLWPHQW,QFUHDVH$PRXQW´PHDQVVROHO\GXULQJWKH6HDVRQDO &RPPLWPHQW,QFUHDVH3HULRGWKHLQFUHDVHRIWKH2UGLQDU\&RPPLWPHQW DVVHWIRUWKRQ 6FKHGXOH RIWKH6HDVRQDO&RPPLWPHQW,QFUHDVH/HQGHULQDQDPRXQWXSWR  ³6HDVRQDO&RPPLWPHQW,QFUHDVH/HQGHU´PHDQV:HOOV)DUJR ³6HDVRQDO&RPPLWPHQW,QFUHDVH8WLOL]HG$PRXQW´PHDQVWKDWSRUWLRQRIWKH6HDVRQDO &RPPLWPHQW,QFUHDVH$PRXQWWKDWWKH%RUURZHUKDVHOHFWHGWRXWLOL]HGXULQJHDFK6HDVRQDO &RPPLWPHQW,QFUHDVH3HULRGLQDFFRUGDQFHZLWKWKHSURYLVLRQVRI6HFWLRQ FG  ³6HDVRQDO,QFUHPHQWDO/RDQ&RPPLWPHQW5HTXLUHPHQWV´PHDQVZLWKUHVSHFWWRDQ\ UHTXHVWE\WKH%RUURZHUWRXWLOL]HWKH6HDVRQDO&RPPLWPHQW,QFUHDVH$PRXQWPDGHSXUVXDQWWR 6HFWLRQ FG WKHVDWLVIDFWLRQRIHDFKRIWKHIROORZLQJFRQGLWLRQV D QR'HIDXOWRU(YHQWRI 'HIDXOWWKHQH[LVWVDQG E WKH%RUURZHUKDVQRWWKHUHWRIRUHUHGXFHGWKH&RPPLWPHQWVSXUVXDQW WR6HFWLRQKHUHRI 


 
³6HDVRQDO&RPPLWPHQW,QFUHDVH3HULRG´PHDQVWKHSHULRGFRPPHQFLQJRQ-XO\RIHDFK FDOHQGDU\HDUDQGHQGLQJRQ'HFHPEHURIVXFKFDOHQGDU\HDU ³6 3´PHDQV6WDQGDUG 3RRU¶V5DWLQJ6HUYLFHVDGLYLVLRQRIWKH0F*UDZ+LOO &RPSDQLHV,QF ³6(&´PHDQVWKH6HFXULWLHVDQG([FKDQJH&RPPLVVLRQ ³6HFRQG$PHQGPHQW(IIHFWLYH'DWH´PHDQV$SULO ³6HFXULW\$JUHHPHQW´PHDQVWKH$PHQGHGDQG5HVWDWHG6HFXULW\$JUHHPHQWGDWHGDVRI WKH-XQHDPRQJWKH/RDQ3DUWLHVDQGWKH&ROODWHUDO$JHQWIRUWKHEHQHILWRIWKH&UHGLW 3DUWLHVDVDPHQGHGDQGLQHIIHFWIURPWLPHWRWLPH ³6HFXULW\'RFXPHQWV´PHDQVWKH6HFXULW\$JUHHPHQWWKH,QWHOOHFWXDO3URSHUW\6HFXULW\ $JUHHPHQWWKH)DFLOLW\*XDUDQWRUV&ROODWHUDO'RFXPHQWVDQGHDFKRWKHUVHFXULW\DJUHHPHQWRU RWKHULQVWUXPHQWRUGRFXPHQWH[HFXWHGDQGGHOLYHUHGSXUVXDQWWR6HFWLRQVRUWRVHFXUH DQ\RIWKH2EOLJDWLRQV ³6HWWOHPHQW'DWH´KDVWKHPHDQLQJSURYLGHGLQ6HFWLRQ E KHUHRI ³6KULQN´PHDQV,QYHQWRU\ZKLFKKDVEHHQORVWPLVSODFHGVWROHQRULVRWKHUZLVH XQDFFRXQWHGIRU ³6LQJOH(PSOR\HU3ODQ´PHDQVDVLQJOHHPSOR\HUSODQDVGHILQHGLQ6HFWLRQ D  RI(5,6$WKDW D LVPDLQWDLQHGIRUHPSOR\HHVRIWKH3DUHQWRUDQ\RILWV6XEVLGLDULHVRUDQ\ (5,6$$IILOLDWHDQGQR3HUVRQRWKHUWKDQWKH3DUHQWLWV6XEVLGLDULHVRUWKH(5,6$$IILOLDWHRU E ZDVVRPDLQWDLQHGDQGLQUHVSHFWRIZKLFKWKH3DUHQWDQ\6XEVLGLDU\RUDQ\(5,6$$IILOLDWH FRXOGKDYHOLDELOLW\XQGHU6HFWLRQRI(5,6$LQWKHHYHQWVXFKSODQKDVEHHQRUZHUHWREH WHUPLQDWHG ³6ROYHQW´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¶VDELOLW\WRSD\DVVXFKGHEWVPDWXUHDQG H VXFK3HUVRQLVQRWHQJDJHGLQDEXVLQHVVRU DWUDQVDFWLRQDQGLVQRWDERXWWRHQJDJHLQDEXVLQHVVRUWUDQVDFWLRQIRUZKLFKVXFK3HUVRQ¶V SURSHUWLHVDQGDVVHWVZRXOGFRQVWLWXWHXQUHDVRQDEO\VPDOOFDSLWDODIWHUJLYLQJGXHFRQVLGHUDWLRQ WRWKHSUHYDLOLQJSUDFWLFHVLQWKHLQGXVWU\LQZKLFKVXFK3HUVRQLVHQJDJHG7KHDPRXQWRIDOO *XDUDQWHHVDWDQ\WLPHVKDOOEHFRPSXWHGDVWKHDPRXQWWKDWLQOLJKWRIDOOWKHIDFWVDQG FLUFXPVWDQFHVH[LVWLQJDWWKHWLPHFDQUHDVRQDEO\EHH[SHFWHGWREHFRPHDQDFWXDORUPDWXUHG OLDELOLW\ 


 
³6WDQGE\/HWWHURI&UHGLW´PHDQVDQ\/HWWHURI&UHGLWRWKHUWKDQD&RPPHUFLDO/HWWHURI &UHGLW ³6WDQGDUG/HWWHURI&UHGLW3UDFWLFH´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³6WDQGE\/HWWHURI&UHGLW´PHDQVDQ\/HWWHURI&UHGLWWKDWLVQRWD&RPPHUFLDO/HWWHURI &UHGLWDQGWKDW D LVXVHGLQOLHXRULQVXSSRUWRISHUIRUPDQFHJXDUDQWLHVRUSHUIRUPDQFHVXUHW\ RUVLPLODUERQGV H[FOXGLQJDSSHDOERQGV DULVLQJLQWKHRUGLQDU\FRXUVHRIEXVLQHVV E LVXVHG LQOLHXRULQVXSSRUWRIVWD\RUDSSHDOERQGV F VXSSRUWVWKHSD\PHQWRILQVXUDQFHSUHPLXPVIRU UHDVRQDEO\QHFHVVDU\FDVXDOW\LQVXUDQFHFDUULHGE\DQ\RIWKH/RDQ3DUWLHVRU G VXSSRUWV SD\PHQWRUSHUIRUPDQFHIRULGHQWLILHGSXUFKDVHVRUH[FKDQJHVRISURGXFWVRUVHUYLFHVLQWKH RUGLQDU\FRXUVHRIEXVLQHVV ³6WDQGE\/HWWHURI&UHGLW$JUHHPHQW´PHDQVWKH6WDQGE\/HWWHURI&UHGLW$JUHHPHQW UHODWLQJWRWKHLVVXDQFHRID6WDQGE\/HWWHURI&UHGLWLQWKHIRUPIURPWLPHWRWLPHLQXVHE\WKH ,VVXLQJ%DQN ³6WDWHG$PRXQW´PHDQVDWDQ\WLPHWKHPD[LPXPDPRXQWIRUZKLFKD/HWWHURI&UHGLW PD\EHKRQRUHG ³6WDWXWRU\5HVHUYH5DWH´PHDQVIRUDQ\,QWHUHVW3HULRGWKHUDWH H[SUHVVHGDVDGHFLPDO DSSOLFDEOHWRWKH$GPLQLVWUDWLYH$JHQWGXULQJVXFK,QWHUHVW3HULRGXQGHUUHJXODWLRQVLVVXHGIURP WLPHWRWLPHE\WKH%RDUGRI*RYHUQRUVRIWKH)HGHUDO5HVHUYH6\VWHP)5%IRUGHWHUPLQLQJWKH PD[LPXPUHVHUYHUHTXLUHPHQW LQFOXGLQJDQ\PDUJLQDOVSHFLDOHPHUJHQF\RUVXSSOHPHQWDO UHVHUYHV H[SUHVVHGDVDGHFLPDOHVWDEOLVKHGE\WKH%RDUG)5%WRZKLFKWKH$GPLQLVWUDWLYH $JHQWLVVXEMHFWZLWKUHVSHFWWRWKH$GMXVWHG/,%25DWHIRUHXURFXUUHQF\IXQGLQJ FXUUHQWO\ UHIHUUHGWRDV³(XURFXUUHQF\/LDELOLWLHV´LQ5HJXODWLRQ'RIWKH%RDUG)5% 6XFKUHVHUYH SHUFHQWDJHVVKDOOLQFOXGHWKRVHLPSRVHGSXUVXDQWWRVXFK5HJXODWLRQ'/,%2/RDQVVKDOOEH GHHPHGWRFRQVWLWXWHHXURFXUUHQF\IXQGLQJDQGWREHVXEMHFWWRVXFKUHVHUYHUHTXLUHPHQWV ZLWKRXWEHQHILWRIRUFUHGLWIRUSURUDWLRQH[HPSWLRQVRURIIVHWVWKDWPD\EHDYDLODEOHIURPWLPH WRWLPHWRDQ\/HQGHUXQGHUVXFK5HJXODWLRQ'RUDQ\FRPSDUDEOHUHJXODWLRQ7KH6WDWXWRU\ 5HVHUYH5DWHVKDOOEHDGMXVWHGDXWRPDWLFDOO\RQDQGDVRIWKHHIIHFWLYHGDWHRIDQ\FKDQJHLQDQ\ UHVHUYHSHUFHQWDJH ³6XERUGLQDWHG,QGHEWHGQHVV´PHDQV,QGHEWHGQHVVZKLFKLVH[SUHVVO\VXERUGLQDWHGLQ ULJKWRISD\PHQWLQIRUPDQGRQWHUPVDSSURYHGE\WKH$JHQWVLQZULWLQJWRWKHSULRUSD\PHQW LQIXOORIWKH2EOLJDWLRQV ³6XEVLGLDU\´PHDQVZLWKUHVSHFWWRDQ\3HUVRQ WKH³SDUHQW´ DWDQ\GDWHDQ\ FRUSRUDWLRQOLPLWHGOLDELOLW\FRPSDQ\SDUWQHUVKLSDVVRFLDWLRQRURWKHUHQWLW\WKHDFFRXQWVRI 


 
ZKLFKZRXOGEHFRQVROLGDWHGZLWKWKRVHRIWKHSDUHQWLQWKHSDUHQW¶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³6ZDS2EOLJDWLRQ´PHDQVZLWKUHVSHFWWRDQ\*XDUDQWRUDQ\REOLJDWLRQWRSD\RU SHUIRUPXQGHUDQ\DJUHHPHQWFRQWUDFWRUWUDQVDFWLRQWKDWFRQVWLWXWHVD³VZDS´ZLWKLQWKH PHDQLQJRIVHFWLRQD  RIWKH&RPPRGLW\([FKDQJH$FW ³6ZLQJOLQH/HQGHU´PHDQV:HOOV)DUJRLQLWVFDSDFLW\DVOHQGHURI6ZLQJOLQH/RDQV KHUHXQGHU ³6ZLQJOLQH/RDQ´VKDOOPHDQD/RDQPDGHE\WKH6ZLQJOLQH/HQGHUWRWKH%RUURZHU SXUVXDQWWR6HFWLRQKHUHRI ³6\QWKHWLF/HDVH´PHDQVDQ\OHDVHRURWKHUDJUHHPHQWIRUWKHXVHRUSRVVHVVLRQRI SURSHUW\FUHDWLQJREOLJDWLRQVZKLFKGRHVQRWDSSHDUDV,QGHEWHGQHVVRQWKHEDODQFHVKHHWRIWKH OHVVHHWKHUHXQGHUEXWZKLFKXSRQWKHLQVROYHQF\RUEDQNUXSWF\RIVXFK3HUVRQPD\EH FKDUDFWHUL]HGDV,QGHEWHGQHVVRIVXFKOHVVHHZLWKRXWUHJDUGWRWKHDFFRXQWLQJWUHDWPHQW ³7D[$JUHHPHQW´PHDQVDWD[VKDULQJDJUHHPHQWDPRQJWKH3DUHQWWKH%RUURZHUDQGLWV 6XEVLGLDULHVLQIRUPDQGVXEVWDQFHVDWLVIDFWRU\WRWKH$GPLQLVWUDWLYH$JHQW ³7D[HV´PHDQVDQ\DQGDOOFXUUHQWRUIXWXUHWD[HVOHYLHVLPSRVWVGXWLHVGHGXFWLRQV FKDUJHVRUZLWKKROGLQJVLPSRVHGE\DQ\*RYHUQPHQWDO$XWKRULW\ ³7HUP/RDQ&RPPLWPHQW´PHDQVDVWRHDFK7HUP/RDQ/HQGHULWVREOLJDWLRQWRPDNHD SRUWLRQRIWKH7HUP/RDQWRWKH%RUURZHUSXUVXDQWWR6HFWLRQ E LQDQDJJUHJDWHSULQFLSDO DPRXQWQRWWRH[FHHGWKHDPRXQWVHWIRUWKRSSRVLWHVXFK7HUP/RDQ/HQGHU¶VQDPHRQ6FKHGXOH RULQWKH$VVLJQPHQWDQG$FFHSWDQFHSXUVXDQWWRZKLFKVXFK7HUP/RDQ/HQGHUEHFRPHVD SDUW\KHUHWRDVDSSOLFDEOHDVVXFKDPRXQW V PD\EHLQFUHDVHGSXUVXDQWWR6HFWLRQ$$V RIWKH7KLUG$PHQGPHQW(IIHFWLYH'DWHWKHDJJUHJDWHDPRXQWRI7HUP/RDQ&RPPLWPHQWVLV  ³7HUP/RDQ&RPPLWPHQW3HUFHQWDJH´PHDQVZLWKUHVSHFWWRHDFK7HUP/RDQ/HQGHU WKDWSHUFHQWDJHRIWKHRXWVWDQGLQJSULQFLSDOEDODQFHRIWKH7HUP/RDQUHSUHVHQWHGE\WKH RXWVWDQGLQJSULQFLSDOEDODQFHRIVXFK7HUP/RDQ/HQGHU¶VSRUWLRQRIWKH7HUP/RDQDWVXFKWLPH VXFKSHUFHQWDJHDVRIWKH7KLUG$PHQGPHQW(IIHFWLYH'DWHEHLQJVHWIRUWKRSSRVLWHLWVQDPH RQ6FKHGXOHKHUHWR  ³7HUP/RDQ´PHDQVWKHWHUPORDQPDGHE\WKH7HUP/RDQ/HQGHUVRQWKH7KLUG $PHQGPHQW(IIHFWLYH'DWHSXUVXDQWWR6HFWLRQ E DQGDQ\$GGLWLRQDO7HUP/RDQVPDGH SXUVXDQWWR6HFWLRQ$ 


 
³7HUP/RDQ$JHQW´PHDQV:HOOV)DUJR%DQN1DWLRQDO$VVRFLDWLRQLQLWVFDSDFLW\DV DJHQWIRUWKH7HUP/RDQ/HQGHUV ³7HUP/RDQ$FWLRQ1RWLFH´VKDOOKDYHWKHPHDQLQJVHWIRUWKLQ6HFWLRQ E KHUHRI ³7HUP/RDQ%RUURZLQJ%DVH´PHDQVDWDQ\WLPHRIFDOFXODWLRQDQDPRXQWHTXDOWR D WKHIDFHDPRXQWRI(OLJLEOH&UHGLW&DUG5HFHLYDEOHVPXOWLSOLHGE\WKH 7HUP/RDQ&UHGLW&DUG5HFHLYDEOHV$GYDQFH5DWHSOXV E WKH7HUP/RDQ,QYHQWRU\$GYDQFH5DWHPXOWLSOLHGE\WKH$SSUDLVHG 9DOXHRI(OLJLEOH,QYHQWRU\QHWRI,QYHQWRU\5HVHUYHV ³7HUP/RDQ&UHGLW&DUG5HFHLYDEOHV$GYDQFH5DWH´PHDQV ³7HUP/RDQ,QWHUHVW5DWH´PHDQVQRWZLWKVWDQGLQJDQ\SURYLVLRQRIWKLV$JUHHPHQWWR WKHFRQWUDU\ XQOHVVDQDOWHUQDWLYHUDWHRILQWHUHVWVKDOODSSO\SXUVXDQWWRDQGLQDFFRUGDQFHZLWK 6HFWLRQRUKHUHRI WKHDPRXQWHTXDOWR D  L WKH$GMXVWHG/,%25DWHIRUDQ,QWHUHVW 3HULRGRIRQHPRQWKGXUDWLRQSOXV LL RU E LIVXFKDOWHUQDWLYHUDWHRILQWHUHVWVKDOODSSO\ SXUVXDQWWRDQGLQDFFRUGDQFHZLWK6HFWLRQRUKHUHRI L WKH3ULPH5DWHSOXV ³7HUP/RDQ,QYHQWRU\$GYDQFH5DWH´PHDQV ³7HUP/RDQ/HQGHU´PHDQVHDFK/HQGHUKDYLQJD7HUP/RDQ&RPPLWPHQWDVVHWIRUWK RQ6FKHGXOHKHUHWRRULQWKH$VVLJQPHQWDQG$FFHSWDQFHE\ZKLFKVXFK3HUVRQEHFRPHVD 7HUP/RDQ/HQGHURUDIWHUWKHPDNLQJRIWKH7HUP/RDQHDFK/HQGHUKROGLQJDQ\SRUWLRQRI WKH7HUP/RDQ ³7HUP/RDQ3ULRULW\$FFRXQW´PHDQVDQRQLQWHUHVWEHDULQJDFFRXQWLQWKHQDPHRIWKH $JHQWHVWDEOLVKHGZLWKDILQDQFLDOLQVWLWXWLRQDFFHSWDEOHWRWKH7HUP/RDQ$JHQWLQWRZKLFK VROHO\WKHSURFHHGVRIWKH7HUP/RDQ3ULRULW\&ROODWHUDOVKDOOEHGHSRVLWHG ³7HUP/RDQ3ULRULW\&ROODWHUDO´PHDQVDOOQRZRZQHGRUKHUHDIWHUDFTXLUHG&ROODWHUDO WKDWFRQVWLWXWHV D )L[WXUHVDQG(TXLSPHQW H[FOXGLQJDQ\DLUFUDIW  E ,QWHOOHFWXDO3URSHUW\ F  3D\PHQW,QWDQJLEOHVWKDWUHODWHWR)L[WXUHVRU(TXLSPHQW G  SHUPLWVDQGOLFHQVHVUHODWHGWRDQ\RIWKHIRUHJRLQJ LQFOXGLQJDQ\SHUPLWVRU OLFHQVHVUHODWHGWRRZQHUVKLSRURSHUDWLRQRI)L[WXUHVRU(TXLSPHQWRIDQ\/RDQ3DUW\  H  DOOSURFHHGVRILQVXUDQFHWKDWUHODWHWRWKHIRUHJRLQJ I  DOOERRNVDQGUHFRUGVUHODWHGWRWKHIRUHJRLQJDQGQRWFRQVWLWXWLQJ5HYROYLQJ /RDQ3ULRULW\&ROODWHUDODQG 


 
J DOOSURGXFWVDQGSURFHHGVRIWKHIRUHJRLQJ $OOFDSLWDOL]HGWHUPVXVHGLQWKLVGHILQLWLRQDQGQRWGHILQHGHOVHZKHUHLQWKLV$JUHHPHQWKDYH WKHPHDQLQJVDVVLJQHGWRWKHPLQWKH8&& ³7HUP/RDQ5HVHUYH´PHDQVWKHDPRXQWLIDQ\E\ZKLFKWKHDJJUHJDWHRXWVWDQGLQJ SULQFLSDOEDODQFHRIWKH7HUP/RDQH[FHHGVWKH7HUP/RDQ%RUURZLQJ%DVH ³7HUPLQDWLRQ'DWH´VKDOOPHDQWKHHDUOLHVWWRRFFXURI L WKH0DWXULW\'DWHRU LL WKH GDWHRQZKLFKWKHPDWXULW\RIWKH/RDQVDUHDFFHOHUDWHGDQGWKH&RPPLWPHQWVDUHWHUPLQDWHGRU LLL WKHGDWHRIWKHRFFXUUHQFHRIDQ\(YHQWRI'HIDXOWSXUVXDQWWR6HFWLRQ KL RU LM KHUHRI ³7RWDO&RPPLWPHQWV´VKDOOPHDQDWDQ\WLPHWKHVXPRIWKHDSSOLFDEOH&RPPLWPHQWVDW VXFKWLPHDVVHWIRUWKRQ6FKHGXOHVXEMHFWWRSRVVLEOHLQFUHDVHSXUVXDQWWR6HFWLRQ$V RIWKH)LUVW$PHQGPHQW(IIHFWLYH'DWHWKH7RWDO&RPPLWPHQWVDJJUHJDWH7KLUG $PHQGPHQW(IIHFWLYH'DWH´PHDQV$XJXVW ³7KLUG$PHQGPHQW)HH/HWWHU´PHDQVWKDWFHUWDLQIHHOHWWHUGDWHGDVRIWKH7KLUG $PHQGPHQW(IIHFWLYH'DWHE\DQGDPRQJWKH%RUURZHUWKH7HUP/RDQ$JHQWDQGWKH $GPLQLVWUDWLYH$JHQW ³7\SH´ZKHQXVHGLQUHIHUHQFHWRDQ\/RDQRU%RUURZLQJUHIHUVWRZKHWKHUWKHUDWHRI LQWHUHVWRQVXFK/RDQRURQWKH/RDQVFRPSULVLQJVXFK%RUURZLQJLVGHWHUPLQHGE\UHIHUHQFHWR WKH$GMXVWHG/,%25DWHRUWKH3ULPH5DWH ³8&&´VKDOOPHDQWKH8QLIRUP&RPPHUFLDO&RGHDVLQHIIHFWIURPWLPHWRWLPHLQWKH 6WDWHRI1HZ<RUNSURYLGHGKRZHYHUWKDWLIDWHUPLVGHILQHGLQ$UWLFOHRIWKH8QLIRUP &RPPHUFLDO&RGHGLIIHUHQWO\WKDQLQDQRWKHU$UWLFOHWKHUHRIWKHWHUPVKDOOKDYHWKHPHDQLQJVHW IRUWKLQ$UWLFOHSURYLGHGIXUWKHUWKDWLIE\UHDVRQRIPDQGDWRU\SURYLVLRQVRIODZSHUIHFWLRQ RUWKHHIIHFWRISHUIHFWLRQRUQRQSHUIHFWLRQRIDVHFXULW\LQWHUHVWLQDQ\&ROODWHUDORUWKH DYDLODELOLW\RIDQ\UHPHG\KHUHXQGHULVJRYHUQHGE\WKH8QLIRUP&RPPHUFLDO&RGHDVLQHIIHFW LQDMXULVGLFWLRQRWKHUWKDQ1HZ<RUN³8QLIRUP&RPPHUFLDO&RGH´PHDQVWKH8QLIRUP &RPPHUFLDO&RGHDVLQHIIHFWLQVXFKRWKHUMXULVGLFWLRQIRUSXUSRVHVRIWKHSURYLVLRQVKHUHRI UHODWLQJWRVXFKSHUIHFWLRQRUHIIHFWRISHUIHFWLRQRUQRQSHUIHFWLRQRUDYDLODELOLW\RIVXFK UHPHG\DVWKHFDVHPD\EH ³8&3´PHDQVZLWKUHVSHFWWRDQ\/HWWHURI&UHGLWWKH8QLIRUP&XVWRPVDQG3UDFWLFHIRU 'RFXPHQWDU\&UHGLWV5HYLVLRQ,QWHUQDWLRQDO&KDPEHURI&RPPHUFH3XEOLFDWLRQ1R DQGDQ\VXEVHTXHQWUHYLVLRQWKHUHRIDGRSWHGE\WKH,QWHUQDWLRQDO&KDPEHURI&RPPHUFHRQWKH GDWHVXFK/HWWHURI&UHGLWLVLVVXHG ³8)&$´KDVWKHPHDQLQJSURYLGHGLQ6HFWLRQ ³8)7$´KDVWKHPHDQLQJSURYLGHGLQ6HFWLRQ 


 
³8QLQWHQWLRQDO2YHUDGYDQFH´PHDQVDQ2YHUDGYDQFHZKLFKWRWKH$GPLQLVWUDWLYH $JHQW¶VNQRZOHGJHGLGQRWFRQVWLWXWHDQ2YHUDGYDQFHZKHQPDGHEXWZKLFKKDVEHFRPHDQ 2YHUDGYDQFHUHVXOWLQJIURPFKDQJHGFLUFXPVWDQFHVEH\RQGWKHFRQWURORIWKH&UHGLW3DUWLHV LQFOXGLQJZLWKRXWOLPLWDWLRQDUHGXFWLRQLQWKH$SSUDLVHG9DOXHRISURSHUW\RUDVVHWVLQFOXGHG LQWKH5HYROYLQJ/RDQ%RUURZLQJ%DVHLQFUHDVHLQ5HVHUYHVRUPLVUHSUHVHQWDWLRQE\WKH/RDQ 3DUWLHV ³8QXVHG&RPPLWPHQW´VKDOOPHDQRQDQ\GD\ D ZLWKUHVSHFWWR5HYROYLQJ/RDQ &RPPLWPHQWVWKHWKHQ$GMXVWHG7RWDO5HYROYLQJ/RDQ&RPPLWPHQWVPLQXV E WKHVXPRI LD WKHSULQFLSDODPRXQWRI5HYROYLQJ/RDQVWKHQRXWVWDQGLQJ LQFOXGLQJWKHSULQFLSDODPRXQWRI 6ZLQJOLQH/RDQVWKHQRXWVWDQGLQJ DQG LLE WKHWKHQ/HWWHURI&UHGLW2XWVWDQGLQJV ³9RWLQJ6WRFN´PHDQVZLWKUHVSHFWWRDQ\3HUVRQWKHRXWVWDQGLQJVWRFNRIDOOFODVVHV RU HTXLYDOHQWLQWHUHVWV ZKLFKRUGLQDULO\LQWKHDEVHQFHRIFRQWLQJHQFLHVHQWLWOHVKROGHUVWKHUHRIWR YRWHIRUWKHHOHFWLRQRIGLUHFWRUV RU3HUVRQVSHUIRUPLQJVLPLODUIXQFWLRQV RIVXFK3HUVRQHYHQ WKRXJKWKHULJKWVRWRYRWHKDVEHHQVXVSHQGHGE\WKHKDSSHQLQJRIVXFKFRQWLQJHQF\8VH 3HULRG´PHDQVWKHSHULRGFRPPHQFLQJRQWKHGDWHWKDWWKH$GPLQLVWUDWLYH$JHQWFRPPHQFHVWKH OLTXLGDWLRQDQGVDOHRIWKH5HYROYLQJ/RDQ3ULRULW\&ROODWHUDODQGHQGLQJGD\VWKHUHDIWHU,I DFRXUWRIFRPSHWHQWMXULVGLFWLRQKDVHQWHUHGDQ\VWD\RURWKHURUGHUWKDWSURKLELWVWKH $GPLQLVWUDWLYH$JHQWIURPFRPPHQFLQJDQGFRQWLQXLQJDQ\(QIRUFHPHQW$FWLRQRUGLVSRVLQJRI WKH5HYROYLQJ/RDQ3ULRULW\&ROODWHUDOVXFKGD\SHULRGVKDOOEHWROOHGGXULQJWKHSHQGHQF\ RIDQ\VXFKVWD\RURWKHURUGHUDQGWKH8VH3HULRGVKDOOEHVRH[WHQGHG ³:HOOV)DUJR´PHDQV:HOOV)DUJR%DQN1DWLRQDO$VVRFLDWLRQDQDWLRQDOEDQNLQJ DVVRFLDWLRQ ³:HOO:HOOV)DUJR'LVEXUVHPHQW$FFRXQWV´KDVWKHPHDQLQJSURYLGHGWKHUHIRULQ6HFWLRQ  I  ³:LWKGUDZDO/LDELOLW\´PHDQVOLDELOLW\WRD0XOWLHPSOR\HU3ODQDVDUHVXOWRIDFRPSOHWH RUSDUWLDOZLWKGUDZDOIURPVXFK0XOWLHPSOR\HU3ODQDVVXFKWHUPVDUHGHILQHGLQ3DUW,RI 6XEWLWOH(RI7LWOH,9RI(5,6$ ³:ULWH'RZQDQG&RQYHUVLRQ3RZHUV´PHDQVZLWKUHVSHFWWRDQ\(($5HVROXWLRQ $XWKRULW\WKHZULWHGRZQDQGFRQYHUVLRQSRZHUVRIVXFK(($5HVROXWLRQ$XWKRULW\IURPWLPH WRWLPHXQGHUWKH%DLO,Q/HJLVODWLRQIRUWKHDSSOLFDEOH(($0HPEHU&RXQWU\ZKLFK ZULWHGRZQDQGFRQYHUVLRQSRZHUVDUHGHVFULEHGLQWKH(8%DLO,Q/HJLVODWLRQ6FKHGXOH 6(&7,21 7HUPV*HQHUDOO\7KHGHILQLWLRQVRIWHUPVKHUHLQVKDOODSSO\HTXDOO\WR WKHVLQJXODUDQGSOXUDOIRUPVRIWKHWHUPVGHILQHG:KHQHYHUWKHFRQWH[WPD\UHTXLUHDQ\ SURQRXQVKDOOLQFOXGHWKHFRUUHVSRQGLQJPDVFXOLQHIHPLQLQHDQGQHXWHUIRUPV7KHZRUGV ³LQFOXGH´³LQFOXGHV´DQG³LQFOXGLQJ´VKDOOEHGHHPHGWREHIROORZHGE\WKHSKUDVH³ZLWKRXW OLPLWDWLRQ´7KHZRUG³ZLOO´VKDOOEHFRQVWUXHGWRKDYHWKHVDPHPHDQLQJDQGHIIHFWDVWKHZRUG ³VKDOO´8QOHVVWKHFRQWH[WUHTXLUHVRWKHUZLVH D DQ\GHILQLWLRQRIRUUHIHUHQFHWRDQ\ DJUHHPHQWLQVWUXPHQWRURWKHUGRFXPHQWKHUHLQVKDOOEHFRQVWUXHGDVUHIHUULQJWRVXFK DJUHHPHQWLQVWUXPHQWRURWKHUGRFXPHQWDVIURPWLPHWRWLPHDPHQGHGVXSSOHPHQWHGRU 


 
RWKHUZLVHPRGLILHG VXEMHFWWRDQ\UHVWULFWLRQVRQVXFKDPHQGPHQWVVXSSOHPHQWVRU PRGLILFDWLRQVVHWIRUWKKHUHLQ  E DQ\UHIHUHQFHKHUHLQWRDQ\3HUVRQVKDOOEHFRQVWUXHGWR LQFOXGHVXFK3HUVRQ¶VVXFFHVVRUVDQGDVVLJQV F WKHZRUGV³KHUHLQ´³KHUHRI´DQG³KHUHXQGHU´ DQGZRUGVRIVLPLODULPSRUWVKDOOEHFRQVWUXHGWRUHIHUWRWKLV$JUHHPHQWLQLWVHQWLUHW\DQGQRW WRDQ\SDUWLFXODUSURYLVLRQKHUHRI G DOOUHIHUHQFHVKHUHLQWR$UWLFOHV6HFWLRQV([KLELWVDQG 6FKHGXOHVVKDOOEHFRQVWUXHGWRUHIHUWR$UWLFOHVDQG6HFWLRQVRIDQG([KLELWVDQG6FKHGXOHVWR WKLV$JUHHPHQWDQG H WKHZRUGV³DVVHW´DQG³SURSHUW\´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¶V5HYROYLQJ/RDQ &RPPLWPHQWRUVXFK5HYROYLQJ/RDQ/HQGHU¶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¶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pro rata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³5HYROYLQJ/RDQ&RPPLWPHQW,QFUHDVH´DQG HDFKVXFK3HUVRQLVVXLQJRU5HYROYLQJ/RDQ/HQGHULQFUHDVLQJLWV&RPPLWPHQWDQ³$GGLWLRQDO 


 
5HYROYLQJ/RDQ&RPPLWPHQW/HQGHU´ provided, however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¶VH[SHQVHWRHDFKVXFK $GGLWLRQDO5HYROYLQJ/RDQ&RPPLWPHQW/HQGHUWREHLQFRQIRUPLW\ZLWKUHTXLUHPHQWV RI6HFWLRQKHUHRI ZLWKDSSURSULDWHPRGLILFDWLRQ WRWKHH[WHQWQHFHVVDU\WRUHIOHFW WKHQHZ5HYROYLQJ/RDQ&RPPLWPHQWRIVXFK$GGLWLRQDO5HYROYLQJ/RDQ&RPPLWPHQW /HQGHUDQG YLL WKH%RUURZHUDQGWKH$GGLWLRQDO5HYROYLQJ/RDQ&RPPLWPHQW /HQGHUVVKDOOKDYHGHOLYHUHGVXFKRWKHULQVWUXPHQWVGRFXPHQWVDQGDJUHHPHQWVDVWKH $GPLQLVWUDWLYH$JHQWPD\UHDVRQDEO\KDYHUHTXHVWHGDQG 


 
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³5HYROYLQJ/RDQ&RPPLWPHQW,QFUHDVH'DWH´  DQGDWVXFKWLPH L WKH7RWDO$JJUHJDWH5HYROYLQJ/RDQ&RPPLWPHQWVXQGHUDQGIRUDOO SXUSRVHVRIWKLV$JUHHPHQWVKDOOEHLQFUHDVHGE\WKHDJJUHJDWHDPRXQWRIVXFK5HYROYLQJ/RDQ &RPPLWPHQW,QFUHDVHV LL 6FKHGXOHVKDOOEHGHHPHGPRGLILHGZLWKRXWIXUWKHUDFWLRQWR UHIOHFWWKHUHYLVHG5HYROYLQJ/RDQ&RPPLWPHQWVDQG5HYROYLQJ/RDQ&RPPLWPHQW3HUFHQWDJHV RIWKH5HYROYLQJ/RDQ/HQGHUVDQG LLL WKLV$JUHHPHQWVKDOOEHGHHPHGDPHQGHGZLWKRXW IXUWKHUDFWLRQWRWKHH[WHQWQHFHVVDU\WRUHIOHFWVXFKLQFUHDVHG7RWDO$JJUHJDWH5HYROYLQJ/RDQ &RPPLWPHQWV LQFOXGLQJZLWKRXWOLPLWDWLRQ6HFWLRQ D L  G ,QFRQQHFWLRQZLWK5HYROYLQJ/RDQ&RPPLWPHQW,QFUHDVHVKHUHXQGHUWKH 5HYROYLQJ/RDQ/HQGHUVDQGWKH%RUURZHUDJUHHWKDWQRWZLWKVWDQGLQJDQ\WKLQJWRWKHFRQWUDU\ LQWKLV$JUHHPHQW L WKH%RUURZHUVKDOOLQFRRUGLQDWLRQZLWKWKH$GPLQLVWUDWLYH$JHQW [ UHSD\RXWVWDQGLQJ5HYROYLQJ/RDQVRIFHUWDLQ5HYROYLQJ/RDQ/HQGHUVDQGREWDLQ5HYROYLQJ /RDQVIURPFHUWDLQRWKHU5HYROYLQJ/RDQ/HQGHUV LQFOXGLQJWKH$GGLWLRQDO5HYROYLQJ/RDQ &RPPLWPHQW/HQGHUV EXWLQQRHYHQWLQH[FHVVRIHDFKVXFK5HYROYLQJ/RDQ/HQGHU¶V 5HYROYLQJ/RDQ&RPPLWPHQWRU \ WDNHVXFKRWKHUDFWLRQVDVUHDVRQDEO\PD\EHUHTXLUHGE\ WKH$GPLQLVWUDWLYH$JHQWLQHDFKFDVHWRWKHH[WHQWQHFHVVDU\VRWKDWDOORIWKH5HYROYLQJ/RDQ /HQGHUVHIIHFWLYHO\SDUWLFLSDWHLQHDFKRIWKHRXWVWDQGLQJ5HYROYLQJ/RDQVSURUDWDRQWKHEDVLV RIWKHLU5HYROYLQJ/RDQ&RPPLWPHQW3HUFHQWDJHV GHWHUPLQHGDIWHUJLYLQJHIIHFWWRDQ\LQFUHDVH LQWKH7RWDO$JJUHJDWH5HYROYLQJ/RDQ&RPPLWPHQWVSXUVXDQWWRWKLV6HFWLRQ DQG LL WKH %RUURZHUVKDOOSD\WRWKH5HYROYLQJ/RDQ/HQGHUVDQ\FRVWVRIWKHW\SHUHIHUUHGWRLQ6HFWLRQ LQFRQQHFWLRQZLWKDQ\UHSD\PHQWDQGRU5HYROYLQJ/RDQVUHTXLUHGSXUVXDQWWRSUHFHGLQJ FODXVH L  6(&7,21$$GGLWLRQDO7HUP/RDQV D 6RORQJDVWKH$GGLWLRQDO7HUP/RDQ&RPPLWPHQW5HTXLUHPHQWVDUH VDWLVILHGWKH%RUURZHUVKDOOKDYHWKHULJKWDWDQ\WLPHDIWHUWKH7KLUG$PHQGPHQW(IIHFWLYH 'DWHDQGIURPWLPHWRWLPHDIWHUWKH7KLUG$PHQGPHQW(IIHFWLYH'DWHWRUHTXHVWDGGLWLRQDO 7HUP/RDQVXSWRDQDPRXQWWKDWZLOOQRWFDXVHWKHDJJUHJDWHRXWVWDQGLQJSULQFLSDOEDODQFHRI 7HUP/RDQVWRH[FHHG HDFKDQ³$GGLWLRQDO7HUP/RDQ´DQGFROOHFWLYHO\WKH ³$GGLWLRQDO7HUP/RDQV´ $Q\VXFKUHTXHVWHG$GGLWLRQDO7HUP/RDQVVKDOOEHILUVWPDGHLQ ZULWLQJWRDOOH[LVWLQJ7HUP/RDQ/HQGHUVRQDpro rataEDVLV,QWKHHYHQWWKDWDQ\H[LVWLQJ 7HUP/RDQ/HQGHUGRHVQRWQRWLI\WKH$GPLQLVWUDWLYH$JHQWDQG7HUP/RDQ$JHQWZLWKLQILYH  %XVLQHVV'D\VIURPWKHUHFHLSWRIDUHTXHVWIRUWKHPDNLQJRI$GGLWLRQDO7HUP/RDQVWKH H[LVWLQJ7HUP/RDQ/HQGHUVKDOOEHGHHPHGWRKDYHGHFOLQHGWRPDNHDQ\$GGLWLRQDO7HUP /RDQV7RWKHH[WHQWWKDWRQHRUPRUHH[LVWLQJ7HUP/RDQ/HQGHUVGHFOLQHPDNHDQ\$GGLWLRQDO 


 
7HUP/RDQVRUGHFOLQHWRPDNHDQ\$GGLWLRQDO7HUP/RDQVLQWKHDPRXQWUHTXHVWHGE\WKH %RUURZHU7HUP/RDQ$JHQWPD\DUUDQJHIRURWKHU3HUVRQVWREHFRPH7HUP/RDQ/HQGHUV KHUHXQGHUDQGWRPDNHDQ\$GGLWLRQDO7HUP/RDQVLQDQDPRXQWHTXDOWRWKHDPRXQWRI $GGLWLRQDO7HUP/RDQVUHTXHVWHGE\WKH%RUURZHUDQGQRWDFFHSWHGE\WKHH[LVWLQJ7HUP/RDQ /HQGHUV HDFKVXFK3HUVRQPDNLQJDQ\$GGLWLRQDO7HUP/RDQVDQ³$GGLWLRQDO7HUP/RDQ &RPPLWPHQW/HQGHU´ provided, however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¶VH[SHQVHWRHDFKVXFK3HUVRQWREHLQ FRQIRUPLW\ZLWKUHTXLUHPHQWVRI6HFWLRQKHUHRI 


 
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¶V7HUP/RDQ&RPPLWPHQWRU \ WDNH VXFKRWKHUDFWLRQVDVUHDVRQDEO\PD\EHUHTXLUHGE\WKH$GPLQLVWUDWLYH$JHQWRUWKH7HUP/RDQ $JHQWLQHDFKFDVHWRWKHH[WHQWQHFHVVDU\VRWKDWDOORIWKH7HUP/RDQ/HQGHUVHIIHFWLYHO\ SDUWLFLSDWHLQWKHRXWVWDQGLQJ7HUP/RDQpro rata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¶ SULRUWHOHSKRQLFHOHFWURQLFQRWLFH WKHUHDIWHUFRQILUPHGLQZULWLQJ  XQOHVVWKH$GPLQLVWUDWLYH $JHQWQRWLILHVWKH%RUURZHULQZULWLQJWKDWWKUHH  %XVLQHVV'D\V¶LVUHTXLUHG RIHDFK/,%2 %RUURZLQJDQGRQH  %XVLQHVV'D\¶VSULRUWHOHSKRQLFHOHFWURQLFQRWLFH WKHUHDIWHUFRQILUPHGLQ ZULWLQJ RIHDFK%RUURZLQJRI3ULPH5DWH/RDQVLQHDFKFDVHWKURXJK$GPLQLVWUDWLYH$JHQW¶V &RPPHUFLDO(OHFWURQLF2IILFH3RUWDORUWKURXJKVXFKRWKHUHOHFWURQLFSRUWDOSURYLGHGE\ $GPLQLVWUDWLYH$JHQW WKH³3RUWDO´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


 
H[HUFLVHRILWVVROHGLVFUHWLRQVXFK5HYROYLQJ/RDQFRQYHUVLRQRUFRQWLQXDWLRQVKDOOQRWEH PDGHXQWLOWKHFRPSOHWLRQRI WKH$GPLQLVWUDWLYH$JHQW¶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¶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¶V/RDQLQFOXGHGLQVXFK %RUURZLQJ8SRQUHFHLSWRIWKHIXQGVPDGHDYDLODEOHE\WKH/HQGHUVWRIXQGDQ\%RUURZLQJ KHUHXQGHUWKH$GPLQLVWUDWLYH$JHQWVKDOOGLVEXUVHVXFKIXQGVLQWRD:HOOV)DUJR'LVEXUVHPHQW $FFRXQWRURWKHUZLVHLQWKHPDQQHUVSHFLILHGLQWKHQRWLFHRIERUURZLQJGHOLYHUHGE\WKH %RUURZHUDQGVKDOOXVHUHDVRQDEOHHIIRUWVWRPDNHWKHIXQGVVRUHFHLYHGIURPWKH/HQGHUV DYDLODEOHWRWKH%RUURZHUQRODWHUWKDQSP F 7KH$GPLQLVWUDWLYH$JHQWZLWKRXWWKHUHTXHVWRIWKH%RUURZHUPD\ DGYDQFHDQ\LQWHUHVWIHHVHUYLFHFKDUJH LQFOXGLQJGLUHFWZLUHIHHV &UHGLW3DUW\([SHQVHV WR WKHH[WHQWWKHQGXHDQGSD\DEOH RURWKHUSD\PHQWWRZKLFKDQ\$JHQWRUWKHLU$IILOLDWHVRUDQ\ /HQGHULVHQWLWOHGIURPWKH%RUURZHUSXUVXDQWKHUHWRRUDQ\RWKHU/RDQ'RFXPHQWDQGPD\ FKDUJHWKHVDPHWRWKH/RDQ$FFRXQWQRWZLWKVWDQGLQJWKDWDQ2YHUDGYDQFHPD\UHVXOWWKHUHE\ 7KH$GPLQLVWUDWLYH$JHQWVKDOODGYLVHWKH%RUURZHURIDQ\VXFKDGYDQFHRUFKDUJHSURPSWO\ DIWHUWKHPDNLQJWKHUHRI6XFKDFWLRQRQWKHSDUWRIWKH$GPLQLVWUDWLYH$JHQWVKDOOQRWFRQVWLWXWH DZDLYHURIWKH$GPLQLVWUDWLYH$JHQW¶VULJKWVDQGWKH%RUURZHU¶VREOLJDWLRQVXQGHU6HFWLRQ  D $Q\DPRXQWZKLFKLVDGGHGWRWKHSULQFLSDOEDODQFHRIWKH/RDQ$FFRXQWDVSURYLGHGLQ WKLV6HFWLRQ F VKDOOEHDULQWHUHVWDWWKHLQWHUHVWUDWHWKHQDQGWKHUHDIWHUDSSOLFDEOHWR3ULPH 5DWH/RDQV G 1RWZLWKVWDQGLQJWKHIRUHJRLQJRUDQ\RWKHUSURYLVLRQKHUHRI H[FHSW 6HFWLRQ DOO7HUP/RDQVVKDOOEHDULQWHUHVWDWWKH7HUP/RDQ,QWHUHVW5DWH 6(&7,21 2YHUDGYDQFHV7KH$JHQWV$GPLQLVWUDWLYH$JHQWWKH&ROODWHUDO$JHQW DQGWKH/HQGHUVKDYHQRREOLJDWLRQWRPDNHDQ\/RDQRUWRSURYLGHDQ\/HWWHURI&UHGLWLIDQ 


 
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¶REOLJDWLRQVWRSXUFKDVHSDUWLFLSDWLRQVZLWK UHVSHFWWR/&'LVEXUVHPHQWVRU6HFWLRQUHJDUGLQJDQ\5HYROYLQJ/RDQ/HQGHU¶V UHLPEXUVHPHQWREOLJDWLRQVZLWKUHVSHFWWR6ZLQJOLQH/RDQV 6(&7,21 6ZLQJOLQH/RDQV D 7KH6ZLQJOLQH/HQGHULVDXWKRUL]HGE\WKH5HYROYLQJ/RDQ/HQGHUVEXWLV QRWREOLJDWHGWRPDNH6ZLQJOLQH/RDQVXSWR L SOXV LL WKH3HUPLWWHG 2YHUDGYDQFHVLQWKHDJJUHJDWHRXWVWDQGLQJDWDQ\WLPHFRQVLVWLQJRQO\RI3ULPH5DWH/RDQV XSRQDQRWLFHRI%RUURZLQJUHFHLYHGE\WKH$GPLQLVWUDWLYH$JHQWDQGWKH6ZLQJOLQH/HQGHU ZKLFKQRWLFHDWWKH6ZLQJOLQH/HQGHU¶VGLVFUHWLRQPD\EHVXEPLWWHGSULRUWRSPRQWKH %XVLQHVV'D\RQZKLFKVXFK6ZLQJOLQH/RDQLVUHTXHVWHG SURYLGHGWKDWWKH6ZLQJOLQH/HQGHU VKDOOQRWEHREOLJDWHGWRPDNHDQ\6ZLQJOLQH/RDQLQLWVUHDVRQDEOHGLVFUHWLRQLIDQ\5HYROYLQJ /RDQ/HQGHUDWVXFKWLPHLVD'HWHULRUDWLQJ/HQGHUXQOHVVWKH6ZLQJOLQH/HQGHUKDVHQWHUHGLQWR VDWLVIDFWRU\DUUDQJHPHQWVZLWKWKH%RUURZHURUVXFK5HYROYLQJ/RDQ/HQGHUWRHOLPLQDWHWKH 6ZLQJOLQH/HQGHU¶VULVNRIIXOOUHLPEXUVHPHQWZLWKUHVSHFWWRVXFK6ZLQJOLQH/RDQ6ZLQJOLQH /RDQVVKDOOEHVXEMHFWWRSHULRGLFVHWWOHPHQWZLWKWKH5HYROYLQJ/RDQ/HQGHUVXQGHU6HFWLRQ EHORZ E 6ZLQJOLQH/RDQVPD\EHPDGHRQO\LQWKHIROORZLQJFLUFXPVWDQFHV $ IRUDGPLQLVWUDWLYHFRQYHQLHQFHWKH6ZLQJOLQH/HQGHUPD\EXWLVQRWREOLJDWHGWRPDNH 6ZLQJOLQH/RDQVLQUHOLDQFHXSRQWKH%RUURZHU¶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¶V5HYROYLQJ/RDQ&RPPLWPHQW3HUFHQWDJHRIWKHRXWVWDQGLQJDPRXQWRI DOO/HWWHURI&UHGLW2XWVWDQGLQJVSOXVVXFK5HYROYLQJ/RDQ/HQGHU¶V5HYROYLQJ/RDQ &RPPLWPHQW3HUFHQWDJHRIWKHRXWVWDQGLQJDPRXQWRIDOO6ZLQJOLQH/RDQVZRXOGH[FHHGVXFK 5HYROYLQJ/RDQ/HQGHU¶V5HYROYLQJ/RDQ&RPPLWPHQWDQGSURYLGHGIXUWKHUWKDWQR/HWWHURI &UHGLWVKDOOEHLVVXHGLI $ WKH,VVXLQJ%DQNVKDOOKDYHUHFHLYHGQRWLFHIURPWKH$GPLQLVWUDWLYH $JHQWRUWKH5HTXLUHG5HYROYLQJ/RDQ/HQGHUVWKDWWKHFRQGLWLRQVWRVXFKLVVXDQFHKDYHQRW EHHQPHWRU % WKHUHH[LVWVD'HWHULRUDWLQJDQGRU'HOLQTXHQW/HQGHUXQOHVV L VXFK5HYROYLQJ /RDQ/HQGHU¶VSDUWLFLSDWLRQZLWKUHVSHFWWRVXFK/HWWHURI&UHGLWLVUHDOORFDWHGSXUVXDQWWR 6HFWLRQRU LL WKH,VVXLQJ%DQNKDVRWKHUZLVHHQWHUHGLQWRDUUDQJHPHQWVUHDVRQDEO\ VDWLVIDFWRU\WRLWDQGWKH%RUURZHUWRHOLPLQDWHWKH,VVXLQJ%DQN¶VULVNZLWKUHVSHFWWRWKH SDUWLFLSDWLRQLQVXFK/HWWHURI&UHGLWRIVXFK5HYROYLQJ/RDQ/HQGHUZKLFKDUUDQJHPHQWVPD\ LQFOXGHWKH%RUURZHUFDVKFROODWHUDOL]LQJVXFK'HIDXOWLQJ'HWHULRUDWLQJDQGRU'HOLQTXHQW /HQGHU¶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


 
$GPLQLVWUDWLYH$JHQWDQGWKH,VVXLQJ%DQNPD\DJUHHLQDSDUWLFXODULQVWDQFHLQWKHLUVROH GLVFUHWLRQ SULRUWRWKHUHTXHVWHGGDWHRILVVXDQFHDPHQGPHQWUHQHZDORUH[WHQVLRQDQG LLL  VXEMHFWWRWKH,VVXLQJ%DQN¶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¶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¶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


 
RID/HWWHURI&UHGLWE\WKH,VVXLQJ%DQN RUWKHDQDPHQGPHQWUHQHZDORUH[WHQVLRQRID/HWWHU RI&UHGLWLQFUHDVLQJWKHDPRXQWWKHUHRI  DQGZLWKRXWDQ\IXUWKHUDFWLRQRQWKHSDUWRIWKH ,VVXLQJ%DQNRUWKH5HYROYLQJ/RDQ/HQGHUVWKH,VVXLQJ%DQNVKDOOEHGHHPHGWRKDYH VROGJUDQWHGWRHDFK5HYROYLQJ/RDQ/HQGHUDQGHDFKVXFK5HYROYLQJ/RDQ/HQGHUVKDOOEH GHHPHGXQFRQGLWLRQDOO\DQGLUUHYRFDEO\WRKDYHSXUFKDVHGIURPWKH,VVXLQJ%DQNZLWKRXW UHFRXUVHRUZDUUDQW\DQXQGLYLGHGLQWHUHVWDQGSDUWLFLSDWLRQWRWKHH[WHQWRIVXFK/HQGHU¶V &RPPLWPHQW3HUFHQWDJHLQVXFK/HWWHURI&UHGLWHDFKGUDZLQJWKHUHXQGHUDQGWKHREOLJDWLRQV RIWKH%RUURZHUXQGHUWKLV$JUHHPHQWDQGWKHRWKHU/RDQ'RFXPHQWVZLWKUHVSHFWWKHUHWR8SRQ DQ\FKDQJHLQWKH&RPPLWPHQWVSXUVXDQWWR6HFWLRQVRULWLVKHUHE\DJUHHGWKDWZLWK UHVSHFWWRDOO/HWWHURI&UHGLW2XWVWDQGLQJVWKHUHVKDOOEHDQDXWRPDWLFDGMXVWPHQWWRWKH SDUWLFLSDWLRQVKHUHE\FUHDWHGWRUHIOHFWWKHQHZ&RPPLWPHQW3HUFHQWDJHVRIWKHDVVLJQLQJDQG DVVLJQHH/HQGHUV$Q\DFWLRQWDNHQRURPLWWHGE\WKH,VVXLQJ%DQNXQGHURULQFRQQHFWLRQZLWKD /HWWHURI&UHGLWLIWDNHQRURPLWWHGLQWKHDEVHQFHRIJURVVQHJOLJHQFHRUZLOOIXOPLVFRQGXFW VKDOOQRWFUHDWHIRUWKH,VVXLQJ%DQNDQ\UHVXOWLQJOLDELOLW\WRDQ\/HQGHU J ,QWKHHYHQW WKDWWKH,VVXLQJ%DQNPDNHVDQ\/&'LVEXUVHPHQWDQGWKH%RUURZHUVKDOOWRKDYHSXUFKDVHGD SDUWLFLSDWLRQLQHDFK/HWWHURI&UHGLWLVVXHGE\WKH,VVXLQJ%DQNLQDQDPRXQWHTXDOWRLWV 5HYROYLQJ/RDQ&RPPLWPHQW3HUFHQWDJHRIVXFK/HWWHURI&UHGLWDQGHDFKVXFK5HYROYLQJ /RDQ/HQGHUDJUHHVWRSD\WRWKH$GPLQLVWUDWLYH$JHQWIRUWKHDFFRXQWRIWKH,VVXLQJ%DQN VXFK5HYROYLQJ/RDQ/HQGHU¶V5HYROYLQJ/RDQ&RPPLWPHQW3HUFHQWDJHRIDQ\/& 'LVEXUVHPHQWPDGHE\WKH,VVXLQJ%DQNXQGHUWKHDSSOLFDEOH/HWWHURI&UHGLW,QFRQVLGHUDWLRQ DQGLQIXUWKHUDQFHRIWKHIRUHJRLQJHDFK5HYROYLQJ/RDQ/HQGHUKHUHE\DEVROXWHO\DQG XQFRQGLWLRQDOO\DJUHHVWRSD\WRWKH$GPLQLVWUDWLYH$JHQWIRUWKHDFFRXQWRIWKH,VVXLQJ%DQN VXFK5HYROYLQJ/RDQ/HQGHU¶V5HYROYLQJ/RDQ&RPPLWPHQW3HUFHQWDJHRIHDFK/& 'LVEXUVHPHQWPDGHE\WKH,VVXLQJ%DQNDQGQRWKDYHUHLPEXUVHGVXFKDPRXQWLQIXOOWRWKH ,VVXLQJ%DQNSXUVXDQWWRWKLV6HFWLRQWKH,VVXLQJ%DQNVKDOOSURPSWO\QRWLI\WKH $GPLQLVWUDWLYH$JHQWZKLFKVKDOOSURPSWO\QRWLI\HDFK/HQGHURIVXFKIDLOXUHDQGHDFK/HQGHU VKDOOSURPSWO\DQGXQFRQGLWLRQDOO\SD\WRWKH$GPLQLVWUDWLYH$JHQWIRUWKHDFFRXQWRIWKH ,VVXLQJ%DQNWKHDPRXQWRIVXFK/HQGHU¶V&RPPLWPHQW3HUFHQWDJHRIVXFKXQUHLPEXUVHG SD\PHQWLQGROODUVDQGLQVDPHGD\IXQGV,IWKH,VVXLQJ%DQNVRQRWLILHVWKH$GPLQLVWUDWLYH $JHQWDQGWKH$GPLQLVWUDWLYH$JHQWVRQRWLILHVWKH/HQGHUVSULRUWRDPRQDQ\%XVLQHVV 'D\HDFKVXFK/HQGHUVKDOOPDNHDYDLODEOHWRWKH,VVXLQJ%DQNVXFK/HQGHU¶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¶V5HYROYLQJ/RDQ &RPPLWPHQW3HUFHQWDJHRIWKHDPRXQWRIVXFKSD\PHQWDYDLODEOHWRWKH,VVXLQJ%DQNVXFK 


 
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¶SULRU ZULWWHQ LQFOXGLQJWHOHJUDSKLFWHOH[IDFVLPLOHRUFDEOHFRPPXQLFDWLRQ QRWLFH RUVXFKVKRUWHU SHULRGDVPD\EHDJUHHGXSRQLQZULWLQJE\WKH,VVXLQJ%DQNDQGWKH%RUURZHU VSHFLI\LQJWKH GDWHRQZKLFKWKHSURSRVHG/HWWHURI&UHGLWLVWREHLVVXHGDPHQGHGUHQHZHGRUH[WHQGHG ZKLFKVKDOOEHD%XVLQHVV'D\ WKHVWDWHGDPRXQWRIWKH/HWWHURI&UHGLWVRUHTXHVWHGWKH H[SLUDWLRQGDWHRIVXFK/HWWHURI&UHGLWWKHQDPHDQGDGGUHVVRIWKHEHQHILFLDU\WKHUHRIDQGWKH SURYLVLRQVWKHUHRI,IUHTXHVWHGE\WKH,VVXLQJ%DQNWKH%RUURZHUVKDOODOVRVXEPLWDOHWWHURI FUHGLWDSSOLFDWLRQRQWKH,VVXLQJ%DQN¶VVWDQGDUGIRUP/HWWHURI&UHGLW$SSOLFDWLRQLQFRQQHFWLRQ ZLWKDQ\UHTXHVWIRUWKHLVVXDQFHDPHQGPHQWUHQHZDORUH[WHQVLRQRID/HWWHURI&UHGLW J L 7KHUHLPEXUVHPHQWDQGSD\PHQWREOLJDWLRQVRIWKH%RUURZHUWR UHLPEXUVHWKH,VVXLQJ%DQNIRUDQ\/&'LVEXUVHPHQWVKDOOEHXQGHUWKLV6HFWLRQDUH DEVROXWHXQFRQGLWLRQDODQGLUUHYRFDEOHDQGVKDOOEHSDLGSHUIRUPHGVWULFWO\LQDFFRUGDQFHZLWK WKHWHUPVRIWKLV$JUHHPHQWXQGHUDOOFLUFXPVWDQFHVZKDWVRHYHULQFOXGLQJZLWKRXWOLPLWDWLRQ L DQ\ODFNRIYDOLGLW\RUHQIRUFHDELOLW\RUOHJDOHIIHFWRIDQ\/HWWHURI&UHGLWRUDQ\,VVXHU 'RFXPHQWWKLV$JUHHPHQWRUSURYLVLRQVRUDQ\RWKHU/RDQ'RFXPHQWRUDQ\WHUPRUSURYLVLRQ WKHUHLQRUKHUHLQ LL WKHH[LVWHQFHRIDQ\FODLPVHWRIIGHIHQVHRURWKHUULJKWZKLFKWKH %RUURZHUDQ\/RDQ3DUW\RUDQ\RILWV6XEVLGLDULHVPD\KDYHDWDQ\WLPHDJDLQVWDEHQHILFLDU\RI DQ\/HWWHURI&UHGLWRUDJDLQVWWKH,VVXLQJ%DQNRUDQ\RIWKH/HQGHUVZKHWKHULQFRQQHFWLRQ ZLWKWKLV$JUHHPHQWWKHWUDQVDFWLRQVFRQWHPSODWHGKHUHLQRUDQ\XQUHODWHGWUDQVDFWLRQRU WUDQVIHUHHEHQHILFLDU\DQ\DVVLJQHHRISURFHHGVWKH,VVXLQJ%DQNRUDQ\RWKHU3HUVRQ LLL DQ\ GUDIWGHPDQGFHUWLILFDWHRURWKHUGRFXPHQWSUHVHQWHGXQGHUDQ\/HWWHURI&UHGLWSURYLQJWREH 


 
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¶VREOLJDWLRQV KHUHXQGHU YL WKHIDFWWKDWDQ\WKH,VVXLQJ%DQNRUDQ\FRUUHVSRQGHQWKRQRULQJDGUDZLQJXSRQ UHFHLSWRIDQHOHFWURQLFSUHVHQWDWLRQXQGHUD/HWWHURI&UHGLWUHTXLULQJWKHVDPHUHJDUGOHVVRI ZKHWKHUWKHRULJLQDO'UDZLQJ'RFXPHQWVDUULYHDWWKH,VVXLQJ%DQN¶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¶VRUDQ\RILWV 6XEVLGLDULHV¶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¶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¶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¶VUHVSHFWLYHGLUHFWRUVRIILFHUVHPSOR\HHVDWWRUQH\VDQGDJHQWV HDFK LQFOXGLQJWKH,VVXLQJ%DQND³/HWWHURI&UHGLW5HODWHG3HUVRQ´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³/HWWHURI&UHGLW,QGHPQLILHG&RVWV´ DQGZKLFK DULVHRXWRIRULQFRQQHFWLRQZLWKRUDVDUHVXOWRI L DQ\/HWWHURI&UHGLWRUDQ\SUHDGYLFHRILWVLVVXDQFH LL DQ\WUDQVIHUVDOHGHOLYHU\VXUUHQGHURUHQGRUVHPHQWRIDQ\ 'UDZLQJ'RFXPHQWDWDQ\WLPH V KHOGE\DQ\VXFK/HWWHURI&UHGLW5HODWHG3HUVRQLQ FRQQHFWLRQZLWKDQ\/HWWHURI&UHGLW 


 
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¶VSHUIRUPDQFHRIWKHREOLJDWLRQVRID FRQILUPLQJLQVWLWXWLRQRUHQWLW\WKDWZURQJIXOO\GLVKRQRUVDFRQILUPDWLRQRU [L [ WKHDFWVRURPLVVLRQVZKHWKHUULJKWIXORUZURQJIXORIDQ\ SUHVHQWRUIXWXUHGHMXUHRUGHIDFWRJRYHUQPHQWDORUUHJXODWRU\DXWKRULW\RUFDXVHRU HYHQWEH\RQGWKHFRQWURORIWKH/HWWHURI&UHGLW5HODWHG3HUVRQ LQHDFKFDVHLQFOXGLQJWKDWUHVXOWLQJIURPWKH/HWWHURI&UHGLW5HODWHG3HUVRQ¶VRZQQHJOLJHQFH SURYLGHGKRZHYHUWKDWVXFKLQGHPQLW\VKDOOQRWEHDYDLODEOHWRDQ\/HWWHURI&UHGLW5HODWHG 3HUVRQFODLPLQJLQGHPQLILFDWLRQXQGHUFODXVHV L WKURXJK [ DERYHWRWKHH[WHQWWKDWVXFK /HWWHURI&UHGLW,QGHPQLILHG&RVWVDULVHDVDUHVXOWRI $ WKHJURVVQHJOLJHQFHRUZLOOIXO PLVFRQGXFWRID/HWWHURI&UHGLW5HODWHG3HUVRQDVGHWHUPLQHGE\DILQDOQRQDSSHDODEOH MXGJPHQWLQDFRXUWRIFRPSHWHQWMXULVGLFWLRQRU % WKHZURQJIXOKRQRURUGLVKRQRUE\WKH ,VVXLQJ%DQNRUDQ\RIWKH,VVXLQJ%DQN¶V$IILOLDWHVRIDSURSHUGHPDQGIRUSD\PHQWPDGHXQGHU D/HWWHURI&UHGLWH[FHSWLIVXFKGLVKRQRUUHVXOWHGIURPDQ\DFWRURPLVVLRQZKHWKHUULJKWIXORU ZURQJIXORIDQ\*RYHUQPHQWDO$XWKRULW\7KH%RUURZHUKHUHE\DJUHHVWRSD\WKH/HWWHURI &UHGLW5HODWHG3HUVRQFODLPLQJLQGHPQLW\RQGHPDQGIURPWLPHWRWLPHDOODPRXQWVRZLQJXQGHU WKLV6HFWLRQ NL ,IDQGWRWKHH[WHQWWKDWWKHREOLJDWLRQVRIWKH%RUURZHUXQGHUWKLV6HFWLRQ 


 
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¶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¶VFRQGXFWLVLQDFFRUGDQFHZLWK6WDQGDUG/HWWHURI&UHGLW3UDFWLFHRULQDFFRUGDQFH ZLWKWKLV$JUHHPHQW7KH%RUURZHU¶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¶VXVHRU UHIXVDOWRXVHWH[WVXEPLWWHGE\WKH%RUURZHU7KH%RUURZHUXQGHUVWDQGVWKDWWKHILQDOIRUPRI DQ\/HWWHURI&UHGLWPD\EHVXEMHFWWRVXFKUHYLVLRQVDQGFKDQJHVDVDUHGHHPHGQHFHVVDU\RU DSSURSULDWHE\WKH,VVXLQJ%DQNFRQVLVWHQWZLWKWKH,VVXLQJ%DQN¶VVWDQGDUGSUDFWLFHVDQGWKH %RUURZHUKHUHE\FRQVHQWVWRVXFKUHYLVLRQVDQGFKDQJHVQRWPDWHULDOO\GLIIHUHQWIURPWKH DSSOLFDWLRQH[HFXWHGLQFRQQHFWLRQWKHUHZLWK7KH%RUURZHULVVROHO\UHVSRQVLEOHIRUWKH VXLWDELOLW\RIWKH/HWWHURI&UHGLWIRUWKH%RUURZHU¶VSXUSRVHV7KH%RUURZHUZLOOH[DPLQHWKH FRS\RIWKH/HWWHURI&UHGLWDQGDQ\RWKHUGRFXPHQWVVHQWE\WKH,VVXLQJ%DQNLQFRQQHFWLRQ WKHUHZLWKDQGVKDOOSURPSWO\QRWLI\WKH,VVXLQJ%DQN QRWODWHUWKDQWKUHH  %XVLQHVV'D\V IROORZLQJWKH%RUURZHU¶VUHFHLSWRIGRFXPHQWVIURPWKH,VVXLQJ%DQN RIDQ\QRQFRPSOLDQFH ZLWKWKH%RUURZHU¶VLQVWUXFWLRQVDQGRIDQ\GLVFUHSDQF\LQDQ\GRFXPHQWXQGHUDQ\SUHVHQWPHQW RURWKHULUUHJXODULW\7KH%RUURZHUXQGHUVWDQGVDQGDJUHHVWKDWWKH,VVXLQJ%DQNLVQRWUHTXLUHG WRH[WHQGWKHH[SLUDWLRQGDWHRIDQ\/HWWHURI&UHGLWIRUDQ\UHDVRQ:LWKUHVSHFWWRDQ\/HWWHURI 


 
&UHGLWFRQWDLQLQJDQ³DXWRPDWLFDPHQGPHQW´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¶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¶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³$JHQW´DVXVHGLQ$UWLFOH9,,,LQFOXGHGWKH,VVXLQJ %DQNZLWKUHVSHFWWRVXFKDFWVRURPLVVLRQVDQG % DVDGGLWLRQDOO\SURYLGHGKHUHLQZLWKUHVSHFW WRWKH,VVXLQJ%DQN R T ,QWKHHYHQWRIDGLUHFWFRQIOLFWEHWZHHQWKHSURYLVLRQVRIWKLV6HFWLRQ DQGDQ\SURYLVLRQFRQWDLQHGLQDQ\,VVXHU'RFXPHQWLWLVWKHLQWHQWLRQRIWKHSDUWLHVKHUHWR WKDWVXFKSURYLVLRQVEHUHDGWRJHWKHUDQGFRQVWUXHGWRWKHIXOOHVWH[WHQWSRVVLEOHWREHLQ FRQFHUWZLWKHDFKRWKHU,QWKHHYHQWRIDQ\DFWXDOLUUHFRQFLODEOHFRQIOLFWWKDWFDQQRWEH UHVROYHGDVDIRUHVDLGWKHWHUPVDQGSURYLVLRQVRIWKLV6HFWLRQVKDOOFRQWURODQGJRYHUQ7KH 


 
SURYLVLRQVRIWKLV6HFWLRQVKDOOVXUYLYHWKHWHUPLQDWLRQRIWKLV$JUHHPHQWDQGWKH UHSD\PHQWLQIXOORIWKH2EOLJDWLRQVZLWKUHVSHFWWRDQ\/HWWHUVRI&UHGLWWKDWUHPDLQ RXWVWDQGLQJ S $WWKH%RUURZHU¶VFRVWVDQGH[SHQVHWKH%RUURZHUVKDOOH[HFXWHDQG GHOLYHUWRWKH,VVXLQJ%DQNVXFKDGGLWLRQDOFHUWLILFDWHVLQVWUXPHQWVDQGRUGRFXPHQWVDQGWDNH VXFKDGGLWLRQDODFWLRQDVPD\EHUHDVRQDEO\UHTXHVWHGE\WKH,VVXLQJ%DQNWRHQDEOHWKH,VVXLQJ %DQNWRLVVXHDQ\/HWWHURI&UHGLWSXUVXDQWWRWKLV$JUHHPHQWDQGUHODWHG,VVXHU'RFXPHQWWR SURWHFWH[HUFLVHDQGRUHQIRUFHWKH,VVXLQJ%DQN¶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¶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¶V5HYROYLQJ/RDQ &RPPLWPHQW3HUFHQWDJHRIRXWVWDQGLQJ5HYROYLQJ/RDQVVKDOOEHFRPSXWHGZHHNO\ RUPRUH IUHTXHQWO\LQWKH$GPLQLVWUDWLYH$JHQW¶VGLVFUHWLRQ DQGVKDOOEHDGMXVWHGXSZDUGRUGRZQZDUG 


 
EDVHGRQDOO5HYROYLQJ/RDQVDQGUHSD\PHQWVRI5HYROYLQJ/RDQVUHFHLYHGE\WKH $GPLQLVWUDWLYH$JHQWDVRISPRQWKHILUVW%XVLQHVV'D\IROORZLQJWKHHQGRIWKHSHULRG VSHFLILHGE\WKH$GPLQLVWUDWLYH$JHQW VXFKGDWHWKH³6HWWOHPHQW'DWH´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¶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¶V5HYROYLQJ/RDQ&RPPLWPHQW RULQWKHFDVHRIWKH1RWHHYLGHQFLQJ WKH6ZLQJOLQH/RDQV DQG LL D7HUP/RDQ/HQGHUWKH7HUP/RDQPDGHE\HDFK VXFK7HUP/RDQ/HQGHUVKDOOEHHYLGHQFHGE\D1RWHGXO\H[HFXWHGRQEHKDOIRIWKH%RUURZHU GDWHGWKH7KLUG$PHQGPHQW(IIHFWLYH'DWHLQVXEVWDQWLDOO\WKHIRUPDWWDFKHGKHUHWRDV([KLELW %SD\DEOHWRWKHRUGHURIHDFK7HUP/RDQ/HQGHU LQDQDJJUHJDWHSULQFLSDODPRXQWHTXDOWR VXFK7HUP/RDQ/HQGHU¶V7HUP/RDQ&RPPLWPHQW  E 7KH%RUURZHUVKDOOPDNHTXDUWHUO\SULQFLSDOSD\PHQWVRQWKH7HUP/RDQ HDFKLQWKHDPRXQWHTXDOWRWKHVXPRI L SOXV LL WZRDQGRQHKDOISHUFHQW  RI DQ\$GGLWLRQDO7HUP/RDQVPDGHSXUVXDQWWKHWHUPVKHUHRILQHDFKFDVHRQWKHILUVW%XVLQHVV 'D\RIHDFKILVFDOTXDUWHUFRPPHQFLQJRQ)HEUXDU\7KH%RUURZHUVKDOOUHSD\WRWKH 


 
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¶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¶V1RWHDQGXSRQDSSURSULDWHLQGHPQLILFDWLRQVRI %RUURZHUWKH%RUURZHUZLOOLVVXHLQOLHXWKHUHRIDUHSODFHPHQW1RWHLQIDYRURIVXFK/HQGHU LQWKHVDPHSULQFLSDODPRXQWWKHUHRIDQGRWKHUZLVHRIOLNHWHQRU 6(&7,21 ,QWHUHVWRQ/RDQV D 6XEMHFWWR6HFWLRQHDFK3ULPH5DWH/RDQVKDOOEHDULQWHUHVW FRPSXWHGRQWKHEDVLVRIWKHDFWXDOQXPEHURIGD\VHODSVHGRYHUD\HDURIGD\V DWDUDWH SHUDQQXPWKDWVKDOOEHHTXDOWRWKHWKHQ3ULPH5DWHSOXVWKH$SSOLFDEOH0DUJLQIRU3ULPH5DWH /RDQV E 6XEMHFWWR6HFWLRQHDFK/,%2/RDQVKDOOEHDULQWHUHVW FRPSXWHGRQ WKHEDVLVRIWKHDFWXDOQXPEHURIGD\VHODSVHGRYHUD\HDURIGD\V DWDUDWHSHUDQQXPHTXDO GXULQJHDFK,QWHUHVW3HULRGDSSOLFDEOHWKHUHWRWRWKH$GMXVWHG/,%25DWHIRUVXFK,QWHUHVW 3HULRGSOXVWKH$SSOLFDEOH0DUJLQIRU/,%2/RDQV F 6XEMHFWWR6HFWLRQWKH7HUP/RDQVVKDOOEHDULQWHUHVW FRPSXWHGRQ WKHEDVLVRIWKHDFWXDOQXPEHURIGD\VHODSVHGRYHUD\HDURIGD\V DWDUDWHSHUDQQXPHTXDO WRWKH7HUP/RDQ,QWHUHVW5DWH G F $FFUXHGLQWHUHVWRQDOO/RDQVVKDOOEHSD\DEOHLQDUUHDUVRQHDFK ,QWHUHVW3D\PHQW'DWHDSSOLFDEOHWKHUHWRDWPDWXULW\ ZKHWKHUE\DFFHOHUDWLRQRURWKHUZLVH  DIWHUVXFKPDWXULW\RQGHPDQGDQG ZLWKUHVSHFWWR/,%2/RDQV XSRQDQ\UHSD\PHQWRU SUHSD\PHQWWKHUHRI RQWKHDPRXQWSUHSDLG  


 
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³&RPPLWPHQW)HH´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³/HWWHURI&UHGLW)HH´ HTXDOWRWKHIROORZLQJSHUDQQXPSHUFHQWDJHVRIWKHIDFHDPRXQW RIWKHIROORZLQJFDWHJRULHVRI/HWWHUVRI&UHGLWRXWVWDQGLQJGXULQJWKHVXEMHFWTXDUWHU L 6WDQGE\/HWWHUVRI&UHGLW $WDSHUDQQXPUDWHHTXDOWRWKHWKHQ $SSOLFDEOH0DUJLQIRU/,%2/RDQV LL &RPPHUFLDO/HWWHUVRI&UHGLW$WDSHUDQQXPUDWHHTXDOWRWKH WKHQ$SSOLFDEOH0DUJLQIRU/,%2/RDQVPLQXV 


 
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¶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


 
LLL DQ\%UHDNDJH&RVWVLIDSSOLFDEOH([FHSWDVVSHFLILHGLQWKLV6HFWLRQQRIHHSHQDOW\ RUSUHPLXPVKDOOEHSD\DEOHLQFRQQHFWLRQZLWKDQ\WHUPLQDWLRQRUUHGXFWLRQRIWKH5HYROYLQJ /RDQ&RPPLWPHQWV E ,Q FRQQHFWLRQ ZLWKDQ\ UHGXFWLRQLQWKH 5HYROYLQJ/RDQ &RPPLWPHQWV SULRUWRWKH0DWXULW\'DWHLIDQ\/RDQ3DUW\RUDQ\RILWV6XEVLGLDULHVRZQVDQ\0DUJLQ6WRFN WKH %RUURZHU VKDOO GHOLYHUWRWKH $GPLQLVWUDWLYH $JHQWDQ XSGDWHG )RUP8 ZLWK VXIILFLHQW DGGLWLRQDO RULJLQDOV WKHUHRIIRU HDFK /HQGHU  GXO\ H[HFXWHGDQG GHOLYHUHGE\WKH %RUURZHU WRJHWKHUZLWKVXFKRWKHUGRFXPHQWDWLRQDVWKH$GPLQLVWUDWLYH$JHQWVKDOOUHDVRQDEO\UHTXHVWLQ RUGHUWR HQDEOHWKH $JHQWVDQGWKH /HQGHUVWR FRPSO\ ZLWKDQ\RIWKH UHTXLUHPHQWV XQGHU 5HJXODWLRQV78RU;RIWKH)5% 6(&7,21 $OWHUQDWH5DWHRI,QWHUHVW ,ISULRUWRWKHFRPPHQFHPHQWRIDQ\,QWHUHVW3HULRGIRUD/,%2%RUURZLQJ D WKH$GPLQLVWUDWLYH$JHQWGHWHUPLQHV ZKLFKGHWHUPLQDWLRQVKDOOEH FRQFOXVLYHDEVHQWPDQLIHVWHUURU WKDWDGHTXDWHDQGUHDVRQDEOHPHDQVGRQRWH[LVWIRU DVFHUWDLQLQJWKH$GMXVWHG/,%25DWHIRUVXFK,QWHUHVW3HULRGRU E WKH$GPLQLVWUDWLYH$JHQWLVDGYLVHGE\WKH5HTXLUHG/HQGHUVWKDWDVD UHVXOWRID&KDQJHLQ/DZDIWHUWKH(IIHFWLYH'DWHWKH$GMXVWHG/,%25DWHIRUVXFK ,QWHUHVW3HULRGZLOOQRWDGHTXDWHO\DQGIDLUO\UHIOHFWWKHFRVWWRVXFK/HQGHUVRIPDNLQJ RUPDLQWDLQLQJWKHLU/RDQVLQFOXGHGLQVXFK%RUURZLQJIRUVXFK,QWHUHVW3HULRG WKHQWKH$GPLQLVWUDWLYH$JHQWVKDOOJLYHQRWLFHWKHUHRIWRWKH%RUURZHUDQGWKH/HQGHUVE\ WHOHSKRQHRUWHOHFRS\DVSURPSWO\DVSUDFWLFDEOHWKHUHDIWHUDQGXQWLOWKH$GPLQLVWUDWLYH$JHQW QRWLILHVWKH%RUURZHUDQGWKH/HQGHUVWKDWWKHFLUFXPVWDQFHVJLYLQJULVHWRVXFKQRWLFHQRORQJHU H[LVW L DQ\%RUURZLQJ5HTXHVWWKDWUHTXHVWVWKHFRQYHUVLRQRIDQ\%RUURZLQJWRRU FRQWLQXDWLRQRIDQ\%RUURZLQJDVD/,%2%RUURZLQJVKDOOEHLQHIIHFWLYHDQG LL LIDQ\ %RUURZLQJ5HTXHVWUHTXHVWVD/,%2%RUURZLQJVXFK%RUURZLQJVKDOOEHPDGHDVD%RUURZLQJ RI3ULPH5DWH/RDQV 6(&7,21 &RQYHUVLRQDQG&RQWLQXDWLRQRI/RDQV 7KH%RUURZHUVKDOOKDYHWKHULJKWDWDQ\WLPHRQWZR  %XVLQHVV'D\V¶SULRU LUUHYRFDEOHQRWLFH XQOHVVWKH$GPLQLVWUDWLYH$JHQWQRWLILHVWKH%RUURZHULQZULWLQJWKDWWKUHH  %XVLQHVV'D\V¶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³%UHDNDJH&RVWV´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¶ ULJKWVXSRQWKHVXEVHTXHQWRFFXUUHQFHRIDQ(YHQWRI'HIDXOW 1RSDUWLDOSUHSD\PHQWRI D%RUURZLQJRI/,%2/RDQVVKDOOUHVXOWLQWKHDJJUHJDWHSULQFLSDODPRXQWRIWKH/,%2 /RDQVUHPDLQLQJRXWVWDQGLQJSXUVXDQWWRVXFK%RUURZLQJEHLQJOHVVWKDQ 


 
([FHSWDVSURYLGHGLQ6HFWLRQDQ\SUHSD\PHQWRIWKH5HYROYLQJ/RDQVVKDOOQRW SHUPDQHQWO\UHGXFHWKH5HYROYLQJ/RDQ&RPPLWPHQWV H G $OODPRXQWVUHTXLUHGWREHDSSOLHGWRDOO/RDQVKHUHXQGHU RWKHUWKDQ 6ZLQJOLQH/RDQV VKDOOEHDSSOLHGUDWDEO\LQDFFRUGDQFHZLWKHDFKDSSOLFDEOH/HQGHU¶V &RPPLWPHQW3HUFHQWDJHZLWKUHVSHFWWKHUHWR I H 8SRQWKH7HUPLQDWLRQ'DWHWKH5HYROYLQJ/RDQ&RPPLWPHQWVDQGWKH FUHGLWIDFLOLW\SURYLGHGKHUHXQGHUVKDOOEHWHUPLQDWHGLQIXOODQGWKH%RUURZHUVKDOOSD\ LQIXOODQGLQFDVKDOORXWVWDQGLQJ/RDQVDQGDOORWKHURXWVWDQGLQJ2EOLJDWLRQV 6(&7,21 2SWLRQDO3UHSD\PHQWRI/RDQV5HLPEXUVHPHQWRI/HQGHUV D 7KH%RUURZHUVKDOOKDYHWKHULJKWDWDQ\WLPHDQGIURPWLPHWRWLPHWR SUHSD\RXWVWDQGLQJ5HYROYLQJ/RDQVLQZKROHRULQSDUW [ ZLWKUHVSHFWWR/,%2/RDQVXSRQDW OHDVWWZR  %XVLQHVV'D\V¶SULRUZULWWHQWHOH[RUIDFVLPLOHQRWLFHWRWKH$GPLQLVWUDWLYH$JHQW SULRUWRSPDQG \ ZLWKUHVSHFWWR3ULPH5DWH/RDQVRQWKHVDPH%XVLQHVV'D\LI ZULWWHQWHOH[RUIDFVLPLOHQRWLFHLVUHFHLYHGE\WKH$GPLQLVWUDWLYH$JHQWSULRUWRSP VXEMHFWWRWKHIROORZLQJOLPLWDWLRQV L 6XEMHFWWR6HFWLRQDOOSUHSD\PHQWVVKDOOEHSDLGWRWKH $GPLQLVWUDWLYH$JHQWIRUDSSOLFDWLRQILUVWWRWKHSUHSD\PHQWRIRXWVWDQGLQJ6ZLQJOLQH /RDQVVHFRQGWRWKHSUHSD\PHQWRIRWKHURXWVWDQGLQJ5HYROYLQJ/RDQVUDWDEO\LQ DFFRUGDQFHZLWKHDFK5HYROYLQJ/RDQ/HQGHU¶V5HYROYLQJ/RDQ&RPPLWPHQW 3HUFHQWDJHDQGWKLUGWRWKHIXQGLQJRIDFDVKFROODWHUDOGHSRVLWLQWKH&DVK&ROODWHUDO $FFRXQWLQDQDPRXQWHTXDOWRRIDOO/HWWHURI&UHGLW2XWVWDQGLQJV LL 6XEMHFWWRWKHIRUHJRLQJRXWVWDQGLQJ3ULPH5DWH/RDQVVKDOOEH SUHSDLGEHIRUHRXWVWDQGLQJ/,%2/RDQVDUHSUHSDLG(DFKSDUWLDOSUHSD\PHQWRI/,%2 /RDQVVKDOOEHLQDQLQWHJUDOPXOWLSOHRI1RSUHSD\PHQWRI5HYROYLQJ/RDQV WKDWDUH/,%2/RDQVVKDOOEHSHUPLWWHGSXUVXDQWWRWKLV6HFWLRQRWKHUWKDQRQWKH ODVWGD\RIDQ,QWHUHVW3HULRGDSSOLFDEOHWKHUHWRXQOHVVWKH%RUURZHUVLPXOWDQHRXVO\ UHLPEXUVHVWKH5HYROYLQJ/RDQ/HQGHUVIRUDOO³%UHDNDJH&RVWV´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¶V 7HUP/RDQ&RPPLWPHQW3HUFHQWDJHRIVXFKSUHSD\PHQW,IVXFKQRWLFHLVJLYHQE\WKH %RUURZHUWKH%RUURZHUVKDOOPDNHVXFKSUHSD\PHQWWRJHWKHUZLWKDOODSSOLFDEOHIHHVFRVWV DQGH[SHQVHVWKHQGXHDQGWKHSD\PHQWDPRXQWVSHFLILHGLQVXFKQRWLFHVKDOOEHGXHDQG SD\DEOHRQWKHGDWHVSHFLILHGWKHUHLQ(DFKVXFKSUHSD\PHQWVKDOOEHDSSOLHGWRWKH7HUP/RDQ ILUVWWRWKHDPRXQWGXHRQWKH0DWXULW\'DWHDQGWKHQLQLQYHUVHRUGHURIWKHSD\PHQWVGXH SXUVXDQWWR6HFWLRQ E  F E 7KH%RUURZHUVKDOOUHLPEXUVHHDFK/HQGHURQGHPDQGIRUDQ\ORVV LQFXUUHGRUWREHLQFXUUHGE\LWLQWKHUHHPSOR\PHQWRIWKHIXQGVUHOHDVHG L UHVXOWLQJIURPDQ\ SUHSD\PHQW IRUDQ\UHDVRQZKDWVRHYHULQFOXGLQJZLWKRXWOLPLWDWLRQFRQYHUVLRQWR3ULPH5DWH /RDQVRUDFFHOHUDWLRQE\YLUWXHRIDQGDIWHUWKHRFFXUUHQFHRIDQ(YHQWRI'HIDXOW RIDQ\/,%2 /RDQUHTXLUHGRUSHUPLWWHGXQGHUWKLV$JUHHPHQWLIVXFK/RDQLVSUHSDLGRWKHUWKDQRQWKHODVW GD\RIWKH,QWHUHVW3HULRGIRUVXFK/RDQRU LL LQWKHHYHQWWKDWDIWHUWKH%RUURZHUGHOLYHUVD QRWLFHRIERUURZLQJXQGHU6HFWLRQLQUHVSHFWRI/,%2/RDQVVXFK/RDQVDUHQRWPDGHRQ WKHILUVWGD\RIWKH,QWHUHVW3HULRGVSHFLILHGLQVXFKQRWLFHRIERUURZLQJIRUDQ\UHDVRQRWKHUWKDQ DEUHDFKE\VXFK/HQGHURILWVREOLJDWLRQVKHUHXQGHURUWKHGHOLYHU\RIDQ\QRWLFHSXUVXDQWWR 6HFWLRQ6XFKORVVVKDOOEHWKHDPRXQWDVUHDVRQDEO\GHWHUPLQHGE\VXFK/HQGHUDVWKH H[FHVVLIDQ\RI $ WKHDPRXQWRILQWHUHVWZKLFKZRXOGKDYHDFFUXHGWRVXFK/HQGHURQWKH DPRXQWVRSDLGRUQRWERUURZHGDWDUDWHRILQWHUHVWHTXDOWRWKH$GMXVWHG/,%25DWHIRUVXFK /RDQIRUWKHSHULRGIURPWKHGDWHRIVXFKSD\PHQWRUIDLOXUHWRERUURZWRWKHODVWGD\ [ LQWKH FDVHRIDSD\PHQWRUUHILQDQFLQJZLWK3ULPH5DWH/RDQVRWKHUWKDQRQWKHODVWGD\RIWKH,QWHUHVW 3HULRGIRUVXFK/RDQRIWKHWKHQFXUUHQW,QWHUHVW3HULRGIRUVXFK/RDQRU \ LQWKHFDVHRIVXFK IDLOXUHWRERUURZRIWKH,QWHUHVW3HULRGIRUVXFK/RDQZKLFKZRXOGKDYHFRPPHQFHGRQWKHGDWH RIVXFKIDLOXUHWRERUURZRYHU % WKHDPRXQWRILQWHUHVWZKLFKZRXOGKDYHDFFUXHGWRVXFK /HQGHURQVXFKDPRXQWE\SODFLQJVXFKDPRXQWRQGHSRVLWIRUDFRPSDUDEOHSHULRGZLWKOHDGLQJ EDQNVLQWKH/RQGRQLQWHUEDQNPDUNHW FROOHFWLYHO\³%UHDNDJH&RVWV´ $Q\/HQGHUGHPDQGLQJ UHLPEXUVHPHQWIRUVXFKORVVVKDOOGHOLYHUWRWKH%RUURZHUIURPWLPHWRWLPHRQHRUPRUH 


 
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³/RDQ$FFRXQW´ ZKLFKZLOOUHIOHFW L DOO6ZLQJOLQH/RDQVDOO 5HYROYLQJ/RDQVWKH7HUP/RDQDQGRWKHUDGYDQFHVPDGHE\WKH/HQGHUVWRWKH%RUURZHURU IRUWKH%RUURZHU¶VDFFRXQW LL DOO/&'LVEXUVHPHQWVIHHVDQGLQWHUHVWWKDWKDYHEHFRPH SD\DEOHDVKHUHLQVHWIRUWKDQG LLL DQ\DQGDOORWKHU2EOLJDWLRQVWKDWKDYHEHFRPHSD\DEOH E 7KH/RDQ$FFRXQWZLOOEHFUHGLWHGZLWKDOODPRXQWVUHFHLYHGE\WKH $GPLQLVWUDWLYH$JHQWIURPWKH%RUURZHURURWKHUZLVHIRUWKH%RUURZHU¶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¶VLQWHUHVWLQVXFK''$ HDFKD³''$1RWLILFDWLRQ´ DQG LL WRWKH H[WHQWQRWSUHYLRXVO\GHOLYHUHGGHOLYHUWRWKH$GPLQLVWUDWLYH$JHQWRQWKH7KLUG$PHQGPHQW (IIHFWLYH'DWHQRWLILFDWLRQVWRHDFKRIWKH%RUURZHU¶VFUHGLWFDUGFOHDULQJKRXVHVDQGSURFHVVRUV RIQRWLFHLQIRUPVDWLVIDFWRU\WRWKH$GPLQLVWUDWLYH$JHQW HDFKD³&UHGLW&DUG1RWLILFDWLRQ´  DQG LLL WRWKHH[WHQWQRWSUHYLRXVO\GHOLYHUHGZLWKLQQLQHW\  GD\VDIWHUWKH7KLUG $PHQGPHQW(IIHFWLYH'DWHHQWHULQWRDJHQF\DJUHHPHQWVZLWKWKHEDQNVPDLQWDLQLQJWKHGHSRVLW DFFRXQWVLGHQWLILHGRQ6FKHGXOH F  FROOHFWLYHO\WKH³%ORFNHG$FFRXQWV´ ZKLFK DJUHHPHQWV WKH³%ORFNHG$FFRXQW$JUHHPHQWV´ VKDOOEHLQIRUPDQGVXEVWDQFHVDWLVIDFWRU\WR WKH$GPLQLVWUDWLYH$JHQW7KH''$1RWLILFDWLRQV&UHGLW&DUG1RWLILFDWLRQVDQG%ORFNHG $FFRXQW$JUHHPHQWVVKDOOUHTXLUHDIWHUWKHRFFXUUHQFHDQGGXULQJWKHFRQWLQXDQFHRID&DVK 'RPLQLRQ(YHQWWKHVZHHSRQHDFK%XVLQHVV'D\RIDOODYDLODEOHFDVKUHFHLSWVIURPWKHVDOHRI ,QYHQWRU\DQGRWKHUDVVHWVDOOFROOHFWLRQVRI$FFRXQWVDOO1HW3URFHHGVDQGDOORWKHUFDVK SD\PHQWVUHFHLYHGE\WKH%RUURZHUIURPDQ\3HUVRQRUIURPDQ\VRXUFHRURQDFFRXQWRIDQ\ VDOHRURWKHUWUDQVDFWLRQRUHYHQW DOOVXFKFDVKUHFHLSWVDQGFROOHFWLRQV³&DVK5HFHLSWV´ WRD FRQFHQWUDWLRQDFFRXQWPDLQWDLQHGE\WKH%RUURZHUDW:HOOV)DUJRRUZLWKDQRWKHU/HQGHU UHDVRQDEO\VDWLVIDFWRU\WRWKH$GPLQLVWUDWLYH$JHQWZLWKZKRPD%ORFNHG$FFRXQW$JUHHPHQW KDVEHHQH[HFXWHG WKH³&RQFHQWUDWLRQ$FFRXQW´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¶VRWKHUIXQGVRUGHSRVLWHGLQDQ\DFFRXQWRIWKH%RUURZHUDQGVKDOOZLWKLQRQH  %XVLQHVV'D\DIWHUUHFHLSWHLWKHUEHGHSRVLWHGLQWRD%ORFNHG$FFRXQWRUWKH&RQFHQWUDWLRQ $FFRXQWPDLQWDLQHGDW:HOOV)DUJRRUGHDOWZLWKLQVXFKRWKHUIDVKLRQDVWKH%RUURZHUPD\EH LQVWUXFWHGE\WKH$GPLQLVWUDWLYH$JHQW)RUSXUSRVHVRIFODULW\XQWLOD&DVK'RPLQLRQ(YHQWKDV 


 
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³:HOOV)DUJR'LVEXUVHPHQW$FFRXQWV´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¶VRSWLRQ LIQR(YHQWRI'HIDXOWKDV RFFXUUHGDQGLVWKHQFRQWLQXLQJ WRIXQGDFDVKFROODWHUDOGHSRVLWWRWKH&DVK&ROODWHUDO$FFRXQW VXIILFLHQWWRSD\DQGZLWKGLUHFWLRQWRSD\DOOVXFKRXWVWDQGLQJ/,%2/RDQVRQWKHODVWGD\RI WKHWKHQSHQGLQJ,QWHUHVW3HULRGWKHUHIRUILIWKLIDQ(YHQWRI'HIDXOWWKHQH[LVWVWRIXQGDFDVK FROODWHUDOGHSRVLWLQWKH&DVK&ROODWHUDO$FFRXQWLQDQDPRXQWHTXDOWRRIDOO/HWWHURI &UHGLW2XWVWDQGLQJVVL[WKWRSD\DOORWKHU2EOLJDWLRQVWKDWDUHWKHQRXWVWDQGLQJDQGWKHQGXH DQGSD\DEOHLQFOXGLQJZLWKRXWOLPLWDWLRQDOO2EOLJDWLRQVDULVLQJRXWRIDQ\&DVK0DQDJHPHQW 6HUYLFHVDQG%DQN3URGXFWVZKLFKDUHWKHQGXHDQGSD\DEOHVHYHQWKWRSD\LQWHUHVWGXHDQG SD\DEOHRQWKH7HUP/RDQDQGWRSD\IHHVDQGH[SHQVHUHLPEXUVHPHQWVLQGHPQLILFDWLRQDQG &UHGLW3DUW\([SHQVHVWKHQGXHDQGSD\DEOHWRWKH7HUP/RDQ$JHQWDQGHLJKWKWRUHSD\WKH RXWVWDQGLQJSULQFLSDOEDODQFHDQGRWKHU2EOLJDWLRQVLQUHVSHFWRIWKH7HUP/RDQ,IDOO 2EOLJDWLRQVWKHQGXHDQGRZLQJDUHSDLGDQG/HWWHUVRI&UHGLW2XWVWDQGLQJVFDVKFROODWHUDOL]HG DQ\H[FHVVDPRXQWVVKDOOEHGHSRVLWHGLQDVHSDUDWHFDVKFROODWHUDODFFRXQWDQGDVORQJDVQR (YHQWRI'HIDXOWWKHQH[LVWVVKDOOEHUHOHDVHGWRWKH%RUURZHUXSRQWKHUHTXHVWRIWKH%RUURZHU DQGXWLOL]HGE\WKH%RUURZHUSULRUWRDQ\IXUWKHU5HYROYLQJ/RDQVEHLQJPDGH$Q\RWKHU DPRXQWVUHFHLYHGE\WKH$GPLQLVWUDWLYH$JHQWWKH,VVXLQJ%DQNWKH&ROODWHUDO$JHQWRUDQ\ /HQGHUDVFRQWHPSODWHGE\6HFWLRQVDQGVKDOODOVREHDSSOLHGLQWKHRUGHU VHWIRUWKDERYHLQWKLV6HFWLRQ E $OOFUHGLWVDJDLQVWWKH2EOLJDWLRQVVKDOOEHFRQGLWLRQHGXSRQILQDO SD\PHQWWRWKH$GPLQLVWUDWLYH$JHQWRIWKHLWHPVJLYLQJULVHWRVXFKFUHGLWV,IDQ\LWHPFUHGLWHG WRWKH/RDQ$FFRXQWLVGLVKRQRUHGRUUHWXUQHGXQSDLGIRUDQ\UHDVRQZKHWKHURUQRWVXFKUHWXUQ LVULJKWIXORUWLPHO\WKH$GPLQLVWUDWLYH$JHQWVKDOOKDYHWKHULJKWWRUHYHUVHVXFKFUHGLWDQG FKDUJHWKHDPRXQWRIVXFKLWHPWRWKH/RDQ$FFRXQWDQGWKH%RUURZHUVKDOOLQGHPQLI\WKH $GPLQLVWUDWLYH$JHQWWKH&ROODWHUDO$JHQWWKH7HUP/RDQ$JHQWWKH,VVXLQJ%DQNDQGWKH /HQGHUVDJDLQVWDOOFODLPVDQGORVVHVUHVXOWLQJIURPVXFKGLVKRQRURUUHWXUQ 6(&7,21 ,QFUHDVHG&RVWV D ,IDQ\&KDQJHLQ/DZ [ &KDQJHLQ/DZRU \ FRPSOLDQFHE\DQ\/HQGHU RU,VVXLQJ%DQNZLWKDQ\GLUHFWLRQUHTXHVWRUUHTXLUHPHQW LUUHVSHFWLYHRIZKHWKHUKDYLQJWKH 


 
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¶VRUWKH,VVXLQJ%DQN¶VFDSLWDORURQWKHFDSLWDORIVXFK/HQGHU¶VRU WKH,VVXLQJ%DQN¶VKROGLQJFRPSDQ\LIDQ\DVDFRQVHTXHQFHRIWKLV$JUHHPHQWRUWKH/RDQV PDGHE\RUSDUWLFLSDWLRQVLQ/HWWHUVRI&UHGLWKHOGE\VXFK/HQGHURUWKH/HWWHUVRI&UHGLW LVVXHGE\WKH,VVXLQJ%DQNWRDOHYHOEHORZWKDWZKLFKVXFK/HQGHURUWKH,VVXLQJ%DQNRUVXFK /HQGHU¶VRUWKH,VVXLQJ%DQN¶VKROGLQJFRPSDQ\FRXOGKDYHDFKLHYHGEXWIRUVXFK&KDQJHLQ /DZ WDNLQJLQWRFRQVLGHUDWLRQVXFK/HQGHU¶VRUWKH,VVXLQJ%DQN¶VSROLFLHVDQGWKHSROLFLHVRI VXFK/HQGHU¶VRUWKH,VVXLQJ%DQN¶VKROGLQJFRPSDQ\ZLWKUHVSHFWWRFDSLWDODGHTXDF\RU OLTXLGLW\ WKHQVXFK/HQGHUVKDOOSURPSWO\QRWLI\WKH%RUURZHUWKHUHRIDQGIURPWLPHWRWLPH WKH%RUURZHUZLOOSD\WRVXFK/HQGHURUWKH,VVXLQJ%DQNDVWKHFDVHPD\EHVXFKDGGLWLRQDO DPRXQWRUDPRXQWVDVZLOOFRPSHQVDWHVXFK/HQGHURUWKH,VVXLQJ%DQNRUVXFK/HQGHU¶VRUWKH ,VVXLQJ%DQN¶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


 
G )DLOXUHRUGHOD\RQWKHSDUWRIDQ\/HQGHURUWKH,VVXLQJ%DQNWRGHPDQG FRPSHQVDWLRQSXUVXDQWWRWKLV6HFWLRQVKDOOQRWFRQVWLWXWHDZDLYHURIVXFK/HQGHU¶VRUWKH ,VVXLQJ%DQN¶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¶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³SRUWIROLRLQWHUHVW´D L )RUP:%(1RUDQ\VXEVHTXHQWYHUVLRQV 


 
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³SRUWIROLRLQWHUHVW´FHUWLI\LQJWKDWLWLVQRWDIRUHLJQ FRUSRUDWLRQSDUWQHUVKLSHVWDWHRUWUXVW6XFKIRUPVVKDOOEHGHOLYHUHGE\HDFK)RUHLJQ/HQGHURQ RUEHIRUHWKHGDWHLWEHFRPHVDSDUW\WRWKLV$JUHHPHQW RULQWKHFDVHRIDWUDQVIHUHHWKDWLVD SDUWLFLSDWLRQKROGHURQRUEHIRUHWKHGDWHVXFKSDUWLFLSDWLRQKROGHUEHFRPHVDWUDQVIHUHH KHUHXQGHU DQGRQRUEHIRUHWKHGDWHLIDQ\VXFK)RUHLJQ/HQGHUFKDQJHVLWVDSSOLFDEOHOHQGLQJ RIILFHE\GHVLJQDWLQJDGLIIHUHQWOHQGLQJRIILFH D³1HZ/HQGLQJ2IILFH´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¶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¶VREOLJDWLRQVXQGHU)$7&$RUWRGHWHUPLQHWKHDPRXQW WRGHGXFWDQGZLWKKROGIURPVXFKSD\PHQW6ROHO\IRUSXUSRVHVRIWKLVFODXVH M ³)$7&$´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¶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¶ULJKWVJHQHUDOO\DQGVXEMHFWWR JHQHUDOSULQFLSOHVRIHTXLW\UHJDUGOHVVRIZKHWKHUFRQVLGHUHGLQDSURFHHGLQJLQHTXLW\RUDWODZ 6(&7,21 *RYHUQPHQWDO$SSURYDOV1R&RQIOLFWV7KHWUDQVDFWLRQVWREHHQWHUHG LQWRFRQWHPSODWHGE\WKH/RDQ'RFXPHQWV D GRQRWUHTXLUHDQ\FRQVHQWRUDSSURYDORI UHJLVWUDWLRQRUILOLQJZLWKRUDQ\RWKHUDFWLRQE\DQ\*RYHUQPHQWDO$XWKRULW\H[FHSWIRUVXFK 


 
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¶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¶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¶VLQWHUHVWLQVXFK/HDVHDVRIWKH7KLUG$PHQGPHQW (IIHFWLYH'DWH(DFKRIVXFK/HDVHVLVLQIXOOIRUFHDQGHIIHFWDQGWKH/RDQ3DUWLHVDUHQRWLQ GHIDXOWRIWKHWHUPVWKHUHRIH[FHSWIRUDQ\VXFKGHIDXOWVWKDWLQGLYLGXDOO\RULQWKHDJJUHJDWH FRXOGQRWUHDVRQDEO\EHH[SHFWHGWRUHVXOWLQOLDELOLW\LQH[FHVVRI 6(&7,21 /LWLJDWLRQDQG(QYLURQPHQWDO0DWWHUV D 7KHUHDUHQRDFWLRQVVXLWVRU SURFHHGLQJVE\RUEHIRUHDQ\DUELWUDWRURU*RYHUQPHQWDO$XWKRULW\SHQGLQJDJDLQVWRUWRWKH NQRZOHGJHRIWKH%RUURZHUWKUHDWHQHGDJDLQVWRUDIIHFWLQJDQ\/RDQ3DUW\ L WKDWLIDGYHUVHO\ 


 
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³LQYHVWPHQWFRPSDQ\´DVGHILQHGLQRUVXEMHFWWRUHJXODWLRQXQGHUWKH,QYHVWPHQW&RPSDQ\ $FWRIRU E D³KROGLQJFRPSDQ\´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³UHSRUWDEOHWUDQVDFWLRQ´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¶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¶LQVXUDQFHWRJHWKHUZLWKVXFKHQGRUVHPHQWVDVDUHUHTXLUHG E\WKH/RDQ'RFXPHQWV Q $OOIHHVGXHDWRULPPHGLDWHO\DIWHUWKH(IIHFWLYH'DWHDQGDOOFRVWVDQG H[SHQVHVLQFXUUHGE\WKH$JHQWV$GPLQLVWUDWLYH$JHQWDQGWKH&ROODWHUDO$JHQWLQ FRQQHFWLRQZLWKWKHHVWDEOLVKPHQWRIWKHFUHGLWIDFLOLW\FRQWHPSODWHGKHUHE\ LQFOXGLQJ WKHIHHVDQGH[SHQVHVRIFRXQVHOWRWKH$JHQWV VKDOOKDYHEHHQSDLGLQIXOO R 7KHFRQVXPPDWLRQRIWKHWUDQVDFWLRQVFRQWHPSODWHGKHUHE\VKDOOQRW D YLRODWHDQ\$SSOLFDEOH/DZRU E FRQIOLFWZLWKRUUHVXOWLQDGHIDXOWRUHYHQWRIGHIDXOW 


 
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¶HTXLW\DQG FDVKIORZVDVRIWKHHQGRIDQGIRUVXFK\HDUVHWWLQJIRUWKLQHDFKFDVHLQFRPSDUDWLYH IRUPWKHILJXUHVIRUWKHSUHYLRXV)LVFDO<HDUDOODXGLWHGDQGUHSRUWHGRQE\'HORLWWH 7RXFKHRUDQRWKHULQGHSHQGHQWSXEOLFDFFRXQWDQWVRIUHFRJQL]HGQDWLRQDOVWDQGLQJ ZLWKRXWD³JRLQJFRQFHUQ´RUOLNHTXDOLILFDWLRQRUH[FHSWLRQDQGZLWKRXWDTXDOLILFDWLRQ RUH[FHSWLRQDVWRWKHVFRSHRIVXFKDXGLW WRWKHHIIHFWWKDWVXFK&RQVROLGDWHGILQDQFLDO VWDWHPHQWVSUHVHQWIDLUO\LQDOOPDWHULDOUHVSHFWVWKHILQDQFLDOFRQGLWLRQDQGUHVXOWVRI RSHUDWLRQVRIWKH3DUHQWDQGLWV6XEVLGLDULHVRQD&RQVROLGDWHGEDVLVLQDFFRUGDQFHZLWK *$$3FRQVLVWHQWO\DSSOLHG E ZLWKLQIRUW\ILYH  GD\VDIWHUWKHHQGRIHDFKILVFDOTXDUWHURIWKH 3DUHQWLWV&RQVROLGDWHGEDODQFHVKHHWDQGUHODWHGVWDWHPHQWVRIRSHUDWLRQVVWRFNKROGHUV¶ HTXLW\DQGFDVKIORZVDVRIWKHHQGRIDQGIRUVXFKILVFDOTXDUWHUDQGWKHHODSVHGSRUWLRQ RIWKH)LVFDO<HDUVHWWLQJIRUWKLQHDFKFDVHLQFRPSDUDWLYHIRUPWKHILJXUHVIRUWKH SUHYLRXV)LVFDO<HDUDQGWKHILJXUHVDVVHWIRUWKLQWKHSURMHFWLRQVGHOLYHUHGSXUVXDQWWR 6HFWLRQ H KHUHRIDOOFHUWLILHGE\RQHRILWV)LQDQFLDO5HVSRQVLEOH2IILFHUVDV SUHVHQWLQJLQDOOPDWHULDOUHVSHFWVWKHILQDQFLDOFRQGLWLRQDQGUHVXOWVRIRSHUDWLRQVRIWKH 


 
3DUHQWDQGLWV6XEVLGLDULHVRQD&RQVROLGDWHGEDVLVLQDFFRUGDQFHZLWK*$$3 FRQVLVWHQWO\DSSOLHGVXEMHFWWRQRUPDO\HDUHQGDXGLWDGMXVWPHQWVDQGWKHDEVHQFHRI IRRWQRWHV F ZLWKLQWKLUW\  GD\VDIWHUWKHHQGRIHDFK)LVFDO0RQWKRIWKH3DUHQWLWV &RQVROLGDWHGEDODQFHVKHHWDQGUHODWHGVWDWHPHQWVRIRSHUDWLRQVVWRFNKROGHUV¶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¶VREOLJDWLRQWRFRPSO\ZLWK VXFKFRYHQDQWLVWKHQLQHIIHFWSURYLGHGWKDWQRQFRPSOLDQFHZLWKVXFKFRYHQDQWDWDQ\ WLPHZKHQLWLVQRWLQHIIHFWZLOOQRWFRQVWLWXWHDQ(YHQWRI'HIDXOW DQG LLL VWDWLQJ ZKHWKHUDQ\FKDQJHLQ*$$3RULQWKHDSSOLFDWLRQWKHUHRIKDVRFFXUUHGVLQFHWKHGDWHRI WKH3DUHQW¶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³%RUURZLQJ%DVH&HUWLILFDWH´ VKRZLQJWKH%RUURZLQJ%DVHDVRI WKHFORVHRIEXVLQHVVRQWKHODVWGD\RIWKHLPPHGLDWHO\SUHFHGLQJ)LVFDO0RQWKHDFK %RUURZLQJ%DVH&HUWLILFDWHWREHFHUWLILHGDVFRPSOHWHDQGFRUUHFWRQEHKDOIRIWKH %RUURZHUE\D)LQDQFLDO5HVSRQVLEOH2IILFHURIWKH%RUURZHUSURYLGHGWKDWDWDQ\WLPH WKDWDQ$FFHOHUDWHG%RUURZLQJ%DVH'HOLYHU\(YHQWKDVRFFXUUHGDQGLVFRQWLQXLQJVXFK %RUURZLQJ%DVH&HUWLILFDWHVKDOOEHSURYLGHGZHHNO\RQ:HGQHVGD\RIHDFKZHHN RULI 


 
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¶VRUDQ\/HQGHU¶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¶VVHQLRUH[HFXWLYHRIILFHUV ([HFXWLYH9LFH 3UHVLGHQWRUKLJKHU WKDWPXVWEHUHSRUWHGWRWKH6(& I DQ\IDLOXUHE\DQ\/RDQ3DUW\WRSD\UHQWDWDQ\RIVXFK/RDQ3DUW\¶V ORFDWLRQVZKLFKIDLOXUHFRQWLQXHVIRUPRUHWKDQWHQ  GD\VIROORZLQJWKHGD\RQZKLFK VXFKUHQWILUVWFDPHGXHZKLFKIDLOXUHFRXOGUHDVRQDEO\OLNHO\KDYHD0DWHULDO$GYHUVH (IIHFW J WKHGLVFKDUJHE\DQ\/RDQ3DUW\RILWVSUHVHQWLQGHSHQGHQWDFFRXQWDQWVRU DQ\ZLWKGUDZDORUUHVLJQDWLRQE\VXFKLQGHSHQGHQWDFFRXQWDQWV K DQ\FROOHFWLYHEDUJDLQLQJDJUHHPHQWRURWKHUODERUFRQWUDFWWRZKLFKD /RDQ3DUW\EHFRPHVDSDUW\RUWKHDSSOLFDWLRQIRUWKHFHUWLILFDWLRQRIDFROOHFWLYH EDUJDLQLQJDJHQW L WKHILOLQJRIDQ\/LHQIRUXQSDLG7D[HVLQDQDPRXQWH[FHHGLQJ DJDLQVWDQ\/RDQ3DUW\WKDWZRXOGUHDVRQDEO\EHH[SHFWHGWRKDYHSULRULW\RYHUWKH/LHQ RIWKH&ROODWHUDO$JHQWLQWKH&ROODWHUDODQG M WKHUHQHZDORUH[WHQVLRQRIWKHWHUPRIWKHSULYDWHODEHOFUHGLWFDUG SURJUDPZLWK&RPHQLW\%DQNRUWKHWHUPLQDWLRQRIVXFKSURJUDPDQGWKHUHSODFHPHQWRI 


 
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¶VFRUSRUDWH QDPHRULQDQ\WUDGHQDPHXVHGWRLGHQWLI\LWLQWKHFRQGXFWRILWVEXVLQHVVRULQWKHRZQHUVKLSRI LWVSURSHUWLHV LL LQWKHORFDWLRQRIDQ\/RDQ3DUW\¶VFKLHIH[HFXWLYHRIILFHLWVSULQFLSDOSODFHRI EXVLQHVVDQ\RIILFHLQZKLFKLWPDLQWDLQVERRNVRUUHFRUGVUHODWLQJWR&ROODWHUDORZQHGE\LWRU DQ\RIILFHRUIDFLOLW\DWZKLFK&ROODWHUDORZQHGE\LWLVORFDWHG LQFOXGLQJWKHHVWDEOLVKPHQWRI DQ\VXFKQHZRIILFHRUIDFLOLW\  LLL LQDQ\/RDQ3DUW\¶VFRUSRUDWHVWUXFWXUHRUMXULVGLFWLRQRI LQFRUSRUDWLRQRUIRUPDWLRQRU LY LQDQ\/RDQ3DUW\¶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¶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¶SULRUZULWWHQQRWLFHWKHUHRIE\WKHLQVXUHUWRWKH&ROODWHUDO$JHQW JLYLQJWKH&ROODWHUDO $JHQWWKHULJKWWRFXUHGHIDXOWVLQWKHSD\PHQWRISUHPLXPV RU % IRUDQ\RWKHUUHDVRQH[FHSW XSRQQRWOHVVWKDQVL[W\  GD\V¶SULRUZULWWHQQRWLFHWKHUHRIE\WKHLQVXUHUWRWKH&ROODWHUDO $JHQW7KH%RUURZHUVKDOOGHOLYHUWRWKH&ROODWHUDO$JHQW$JHQWVSULRUWRWKHFDQFHOODWLRQ PRGLILFDWLRQRUQRQUHQHZDORIDQ\VXFKSROLF\RILQVXUDQFHDFRS\RIDUHQHZDORUUHSODFHPHQW SROLF\ RURWKHUHYLGHQFHRIUHQHZDORIDSROLF\SUHYLRXVO\GHOLYHUHGWRWKH&ROODWHUDO$JHQW LQFOXGLQJDQLQVXUDQFHELQGHU WRJHWKHUZLWKHYLGHQFHVDWLVIDFWRU\WRWKH&ROODWHUDO$JHQWRI SD\PHQWRIWKHSUHPLXPWKHUHIRU 


 
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¶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¶REOLJDWLRQWRSD\WKHH[SHQVHVIRU DSSUDLVDOVDQGFRPPHUFLDOILQDQFHH[DPLQDWLRQVSULRUWRWKHRFFXUUHQFHRIDQ(YHQWRI'HIDXOW WKH$GPLQLVWUDWLYH$JHQWPD\ L XQGHUWDNHVXFKDGGLWLRQDODSSUDLVDOVDQGFRPPHUFLDOVILQDQFH H[DPLQDWLRQVSULRUWRWKHRFFXUUHQFHRIDQ(YHQWRI'HIDXOWDVLWLQLWVUHDVRQDEOHGLVFUHWLRQ GHHPVQHFHVVDU\DWWKHH[SHQVHRIWKH/HQGHUVDQG LL LIDQ(YHQWRI'HIDXOWVKDOOKDYH RFFXUUHGDQGEHFRQWLQXLQJXQGHUWDNHVXFKDGGLWLRQDODSSUDLVDOVDQGFRPPHUFLDOILQDQFH H[DPLQDWLRQVDWWKH/RDQ3DUWLHV¶H[SHQVHDVLWGHHPVDSSURSULDWH,QDOOHYHQWVLIWKH&ROODWHUDO $JHQWKDVQRWXQGHUWDNHQDFRPPHUFLDOILQDQFHH[DPLQDWLRQRUDQLQYHQWRU\DSSUDLVDOZLWKLQWKH 


 
LPPHGLDWHO\SUHFHGLQJQLQH  PRQWKSHULRGRIDQ\)LVFDO<HDUWKH7HUP/RDQ$JHQWPD\LQ LWVGLVFUHWLRQGLUHFWWKH&ROODWHUDO$JHQWWRGRVRXSRQZULWWHQQRWLFHWRWKH&ROODWHUDO$JHQW F 7KH/RDQ3DUWLHVVKDOODWDOOWLPHVUHWDLQLQGHSHQGHQWFHUWLILHGSXEOLF DFFRXQWDQWVZKRDUHUHDVRQDEO\VDWLVIDFWRU\WRWKH$GPLQLVWUDWLYH$JHQWDQGWKH7HUP/RDQ $JHQWDQGLQVWUXFWVXFKDFFRXQWDQWVWRFRRSHUDWHZLWKDQGEHDYDLODEOHWRWKH$GPLQLVWUDWLYH $JHQWRULWVDQGWKH7HUP/RDQ$JHQWRUWKHLUUHSUHVHQWDWLYHVWRGLVFXVVWKH/RDQ3DUWLHV¶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¶V,QYHQWRU\WREHXQGHUWDNHQLQHDFKWZHOYH  PRQWKSHULRGGXULQJZKLFKWKLV $JUHHPHQWLVLQHIIHFWXVLQJSUDFWLFHVFRQVLVWHQWZLWKSUDFWLFHVLQHIIHFWRQWKHGDWHKHUHRI F 7KH%RUURZHUZLWKLQWKLUW\  GD\VIROORZLQJWKHFRPSOHWLRQRIVXFK LQYHQWRU\VKDOOSURYLGHWKH&ROODWHUDO$JHQWZLWKDUHFRQFLOLDWLRQRIWKHUHVXOWVRIHDFKVXFK LQYHQWRU\ DVZHOODVRIDQ\RWKHUSK\VLFDOLQYHQWRU\XQGHUWDNHQE\WKH%RUURZHU DQGVKDOOSRVW VXFKUHVXOWVWRWKH%RUURZHU¶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¶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


 
F 8SRQWKHUHTXHVWRIWKH$GPLQLVWUDWLYH$JHQWWKH%RUURZHUVKDOOFDXVH HDFKRILWVFXVWRPVEURNHUVWRGHOLYHUDQDJUHHPHQWWRWKH$GPLQLVWUDWLYH$JHQWFRYHULQJVXFK PDWWHUVDQGLQVXFKIRUPDVWKH$GPLQLVWUDWLYH$JHQWPD\UHDVRQDEO\UHTXLUH 6(&7,21 2)$&$QWL&RUUXSWLRQ/DZV$QWL0RQH\/DXQGHULQJ/DZV(DFK /RDQ3DUW\ZLOODQGZLOOFDXVHHDFKRILWV6XEVLGLDULHVWRFRPSO\ZLWKDOODSSOLFDEOH6DQFWLRQV $QWL&RUUXSWLRQ/DZVDQG$QWL0RQH\/DXQGHULQJ/DZV(DFKRIWKH/RDQ3DUWLHVDQGLWV 6XEVLGLDULHVVKDOOLPSOHPHQWDQGPDLQWDLQLQHIIHFWSROLFLHVDQGSURFHGXUHVGHVLJQHGWRHQVXUH FRPSOLDQFHE\WKH/RDQ3DUWLHVDQGWKHLU6XEVLGLDULHVDQGWKHLUUHVSHFWLYHGLUHFWRUVRIILFHUV HPSOR\HHVDJHQWVDQG$IILOLDWHVZLWKDOO6DQFWLRQV$QWL&RUUXSWLRQ/DZVDQG$QWL0RQH\ /DXQGHULQJ/DZV(DFKRIWKH/RDQ3DUWLHVVKDOODQGVKDOOFDXVHWKHLUUHVSHFWLYH6XEVLGLDULHVWR FRPSO\ZLWKDOO6DQFWLRQV$QWL&RUUXSWLRQ/DZVDQG$QWL0RQH\/DXQGHULQJ/DZV $57,&/(9, 1HJDWLYH&RYHQDQWV 8QWLO L WKH&RPPLWPHQWVKDYHH[SLUHGRUEHHQWHUPLQDWHGDQG LL WKHSULQFLSDORIDQG LQWHUHVWRQHDFK/RDQDQGDOOIHHVDQGRWKHU2EOLJDWLRQVSD\DEOHKHUHXQGHUVKDOOKDYHEHHQSDLG LQIXOODQG LLL DOO/HWWHUVRI&UHGLWVKDOOKDYHH[SLUHGRUWHUPLQDWHGRUEHHQFROODWHUDOL]HGWR WKHH[WHQWRIRIWKHWKHQ/HWWHURI&UHGLW2XWVWDQGLQJVE\FDVKRUDOHWWHURIFUHGLWLVVXHG E\DILQDQFLDOLQVWLWXWLRQDQGRQWHUPVUHDVRQDEO\VDWLVIDFWRU\WRWKH$GPLQLVWUDWLYH$JHQWDQG LY DOO/&'LVEXUVHPHQWVVKDOOKDYHEHHQUHLPEXUVHGHDFK/RDQ3DUW\FRYHQDQWVDQGDJUHHV ZLWKWKH$JHQWVDQGWKH/HQGHUVWKDW 6(&7,21 ,QGHEWHGQHVVDQG2WKHU2EOLJDWLRQV D 7KH/RDQ3DUWLHVZLOOQRWDQG ZLOOQRWSHUPLWDQ\6XEVLGLDU\WRFUHDWHLQFXUDVVXPHRUSHUPLWWRH[LVWDQ\,QGHEWHGQHVV H[FHSW L ,QGHEWHGQHVVFUHDWHGXQGHUWKH/RDQ'RFXPHQWV LL ,QGHEWHGQHVVVHWIRUWKLQ6FKHGXOHDQGH[WHQVLRQVUHQHZDOV DQGUHSODFHPHQWVRIDQ\VXFK,QGHEWHGQHVVSURYLGHGWKDWDIWHUJLYLQJHIIHFWWRWKH UHILQDQFLQJ L WKHSULQFLSDODPRXQWRIWKHRXWVWDQGLQJ,QGHEWHGQHVVLVQRWLQFUHDVHG LL QHLWKHUWKHWHQRUQRUWKHDYHUDJHOLIHLVUHGXFHGDQG LLL WKHKROGHUVRIVXFKUHILQDQFLQJ ,QGHEWHGQHVVDUHQRWDIIRUGHGFRYHQDQWVGHIDXOWVULJKWVRUUHPHGLHVPRUHEXUGHQVRPHLQ DQ\PDWHULDOUHVSHFWWRWKHREOLJRURUREOLJRUVWKDQWKRVHFRQWDLQHGLQWKH,QGHEWHGQHVV EHLQJUHILQDQFHG LLL ,QGHEWHGQHVVRIDQ\/RDQ3DUW\WRDQ\RWKHU/RDQ3DUW\DOORI ZKLFK,QGHEWHGQHVVVKDOOEHUHIOHFWHGLQWKH/RDQ3DUWLHV¶ERRNVDQGUHFRUGVLQ DFFRUGDQFHZLWK*$$3 LY ,QGHEWHGQHVVRIDQ\/RDQ3DUW\ $ WRILQDQFHWKHDFTXLVLWLRQRI DQ\IL[HGRUFDSLWDODVVHWVLQFOXGLQJ&DSLWDO/HDVH2EOLJDWLRQV % LQFXUUHGSXUVXDQWWR DILQDQFLQJRIDQ\IL[HGRUFDSLWDODVVHWVZKLFKDUHRZQHGDQGXQHQFXPEHUHGDWWKHWLPH 


 
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¶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¶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¶V(OLJLEOH,QYHQWRU\DVRIWKH7KLUG $PHQGPHQW(IIHFWLYH'DWH H DQ\LVVXDQFHRIVKDUHVRIFDSLWDOVWRFNRIWKH3DUHQWLQDFFRUGDQFHZLWKWKH H[LVWLQJUHVWULFWHGVWRFNDQGVWRFNRSWLRQSODQVRUDJUHHPHQWVRULQFRQQHFWLRQZLWKDQ\ 3HUPLWWHG$FTXLVLWLRQDQG 


 
I VDOHVWUDQVIHUVRURWKHUGLVSRVLWLRQVRIFUHGLWFDUGUHFHLYDEOHVWR&RPHQLW\ %DQNSXUVXDQWWRLWVSULYDWHODEHOFUHGLWFDUGSURJUDPZLWKWKH/RDQ3DUWLHVRUWRDQ\ RWKHUWKLUGSDUW\UHSODFLQJ&RPHQLW\%DQNDQGDGPLQLVWHULQJDSULYDWHODEHOFUHGLWFDUG SURJUDPIRUDQ\RIWKH/RDQ3DUWLHV SURYLGHGWKDWDOOVDOHVWUDQVIHUVOHDVHVDQGRWKHUGLVSRVLWLRQVSHUPLWWHGKHUHE\VKDOOEHPDGHDW DUP¶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¶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³(YHQWVRI'HIDXOW´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¶VWHUPVRUZKLFKVHHNVWRYRLGDYRLG OLPLWRURWKHUZLVHDGYHUVHO\DIIHFWDQ\VHFXULW\LQWHUHVWFUHDWHGE\RULQDQ\/RDQ 'RFXPHQWRUDQ\SD\PHQWPDGHSXUVXDQWWKHUHWR LL DQ\FKDOOHQJHE\RURQEHKDOIRIDQ\RWKHU3HUVRQWRWKHYDOLGLW\RI DQ\/RDQ'RFXPHQWRUWKHDSSOLFDELOLW\RUHQIRUFHDELOLW\RIDQ\/RDQ'RFXPHQWVWULFWO\ LQDFFRUGDQFHZLWKWKHVXEMHFW/RDQ'RFXPHQW¶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


 
T WKHGHWHUPLQDWLRQE\WKH%RUURZHUZKHWKHUE\YRWHRIWKH%RUURZHU¶V SDUWQHUVRURWKHUZLVHWRVXVSHQGWKHRSHUDWLRQRIWKH%RUURZHU¶VEXVLQHVVLQWKHRUGLQDU\ FRXUVHOLTXLGDWHDOORUDPDWHULDOSRUWLRQRIWKH%RUURZHU¶VDVVHWV RWKHUWKDQDVDOHRILWV SULYDWHODEHOFUHGLWFDUGSRUWIROLR RUVWRUHORFDWLRQVRUHPSOR\DQDJHQWRURWKHUWKLUG SDUW\WRFRQGXFWDSURJUDPRIFORVLQJVOLTXLGDWLRQVRU³*RLQJ2XW2I%XVLQHVV´VDOHVRI DQ\PDWHULDOSRUWLRQRIWKHEXVLQHVVRU U $Q\&KDQJHLQ&RQWURO WKHQDQGLQHYHU\VXFKHYHQW RWKHUWKDQDQHYHQWZLWKUHVSHFWWRDQ\/RDQ3DUW\GHVFULEHGLQ FODXVH L RU M RIWKLV6HFWLRQ DQGDWDQ\WLPHWKHUHDIWHUGXULQJWKHFRQWLQXDQFHRIVXFK HYHQWWKH$GPLQLVWUDWLYH$JHQWPD\DQGDWWKHUHTXHVWRIWKH5HTXLUHG/HQGHUVVKDOOE\ ZULWWHQQRWLFHWRWKH%RUURZHUWDNHHLWKHUDQ\RUERWKDOORIWKHIROORZLQJDFWLRQVDWWKHVDPHRU GLIIHUHQWWLPHV L WHUPLQDWHDOORUDQ\SRUWLRQRIWKH&RPPLWPHQWVDQGWKHUHXSRQDOORUVXFK SRUWLRQRIWKH&RPPLWPHQWVVKDOOWHUPLQDWHLPPHGLDWHO\ LL GHFODUHWKH/RDQVWKHQRXWVWDQGLQJ WREHGXHDQGSD\DEOHLQZKROH RULQSDUWLQZKLFKFDVHDQ\SULQFLSDOQRWVRGHFODUHGWREHGXH DQGSD\DEOHPD\WKHUHDIWHUEHGHFODUHGWREHGXHDQGSD\DEOH DQGWKHUHXSRQWKHSULQFLSDORI WKH/RDQVVRGHFODUHGWREHGXHDQGSD\DEOHWRJHWKHUZLWKDFFUXHGLQWHUHVWWKHUHRQDQGDOOIHHV DQGRWKHU2EOLJDWLRQVRIWKH/RDQ3DUWLHVDFFUXHGKHUHXQGHUVKDOOEHFRPHGXHDQGSD\DEOH LPPHGLDWHO\ZLWKRXWSUHVHQWPHQWGHPDQGSURWHVWRURWKHUQRWLFHRIDQ\NLQGDOORIZKLFKDUH KHUHE\ZDLYHGE\WKH/RDQ3DUWLHVDQG LLL UHTXLUHWKH%RUURZHUWRIXUQLVKFDVKFROODWHUDOLQDQ DPRXQWHTXDOWRRIWKH/HWWHURI&UHGLW2XWVWDQGLQJVDQGLQFDVHRIDQ\HYHQWZLWKUHVSHFW WRDQ\/RDQ3DUW\GHVFULEHGLQFODXVH KL RU LM RIWKLV$UWLFOH6HFWLRQ [ WKH &RPPLWPHQWVVKDOODXWRPDWLFDOO\WHUPLQDWHDQG \ WKHSULQFLSDORIWKH/RDQVWKHQRXWVWDQGLQJ WRJHWKHUZLWKDFFUXHGLQWHUHVWWKHUHRQDQGDOOIHHVDQGRWKHU2EOLJDWLRQVRIWKH/RDQ3DUWLHV DFFUXHGKHUHXQGHUVKDOODXWRPDWLFDOO\EHFRPHGXHDQGSD\DEOHZLWKRXWSUHVHQWPHQWGHPDQG SURWHVWRURWKHUQRWLFHRIDQ\NLQGDOORIZKLFKDUHKHUHE\ZDLYHGE\WKH/RDQ3DUWLHVDQG ]  WKH%RUURZHUVKDOODXWRPDWLFDOO\EHREOLJDWHGWRIXUQLVKDQGWKH%RUURZHUDJUHHVWKDWLWVKDOO SURPSWO\IXUQLVKFDVKFROODWHUDOLQDQDPRXQWHTXDOWRRIWKH/HWWHURI&UHGLW 2XWVWDQGLQJV 6(&7,21 :KHQ&RQWLQXLQJ )RUDOOSXUSRVHVXQGHUWKLV$JUHHPHQWHDFK'HIDXOWDQG(YHQWRI'HIDXOWWKDWKDV RFFXUUHGVKDOOEHGHHPHGWREHFRQWLQXLQJDWDOOWLPHVWKHUHDIWHUXQOHVVLWHLWKHU D ZLWKUHVSHFW WRDQ\'HIDXOWLVFXUHGRUFRUUHFWHGWRWKHUHDVRQDEOHZULWWHQVDWLVIDFWLRQRIWKH5HTXLUHG /HQGHUVRU E ZLWKUHVSHFWWRDQ\'HIDXOWRU(YHQWRI'HIDXOWLVZDLYHGLQZULWLQJLQ DFFRUGDQFHZLWK6HFWLRQ 6(&7,21 5HPHGLHVRQ'HIDXOW D ,QFDVHDQ\RQHRUPRUHRIWKH(YHQWVRI'HIDXOWVKDOOKDYHRFFXUUHGDQG EHFRQWLQXLQJDQGZKHWKHURUQRWWKHPDWXULW\RIWKH/RDQVVKDOOKDYHEHHQDFFHOHUDWHG SXUVXDQWKHUHWRWKH$GPLQLVWUDWLYH$JHQWPD\SURFHHGWRSURWHFWDQGHQIRUFHLWVULJKWV DQGUHPHGLHVXQGHUWKLV$JUHHPHQWWKH1RWHVRUDQ\RIWKHRWKHU/RDQ'RFXPHQWVE\ VXLWLQHTXLW\DFWLRQDWODZRURWKHUDSSURSULDWHSURFHHGLQJZKHWKHUIRUWKHVSHFLILF 


 
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³7HUP/RDQ$FWLRQ1RWLFH´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³VWRUHFORVLQJ´³JRLQJRXWRIEXVLQHVV´ RUVLPLODUVDOHZKHWKHULQEXONLQORWVRUWRFXVWRPHUVLQWKHRUGLQDU\FRXUVHRIEXVLQHVV RURWKHUZLVHDQGZKLFKVDOHPD\LQFOXGHDXJPHQWHG,QYHQWRU\RIWKHVDPHW\SHVROGLQ DQ\/RDQ3DUW\¶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¶IHHVDQGH[SHQVHV DULVLQJIURPWKH$GPLQLVWUDWLYH $JHQW¶VWKH&ROODWHUDO$JHQW¶VDQGWKH5HYROYLQJ/RDQ/HQGHUV¶XVHRIWKH7HUP/RDQ 3ULRULW\&ROODWHUDO H[FHSWIRUWKRVHDULVLQJIURPWKHJURVVQHJOLJHQFHRUZLOOIXO PLVFRQGXFWRIWKH7HUP/RDQ$JHQWRUDQ\7HUP/RDQ/HQGHU  G 1RWZLWKVWDQGLQJDQ\WKLQJWRWKHFRQWUDU\FRQWDLQHGLQWKLV$JUHHPHQWRU DQ\RWKHU/RDQ'RFXPHQWLIDQ\/RDQ3DUW\VKDOOEHVXEMHFWWRDQ\SURFHHGLQJZLWK UHVSHFWWRDQ\'HEWRU5HOLHI/DZV L 1R5HYROYLQJ/RDQ/HQGHUZLOOSURYLGHRURIIHUWRSURYLGHDQ\ ',3)LQDQFLQJZLWKVXFK',3)LQDQFLQJWREHVHFXUHGE\DOORUDQ\SRUWLRQRIWKH &ROODWHUDO LQFOXGLQJDVVHWVWKDWEXWIRUWKHDSSOLFDWLRQRI6HFWLRQRIWKH %DQNUXSWF\&RGHRURWKHU$SSOLFDEOH/DZZRXOGEH&ROODWHUDO WRWKH/RDQ 3DUWLHVXQOHVV [ WKHWHUPVRIVXFK',3)LQDQFLQJFRPSOLHVZLWKWKHWHUPVDQG FRQGLWLRQVRIWKLV$JUHHPHQWLQFOXGLQJZLWKRXWOLPLWDWLRQ D WKHVXPRI  DOO WKHQRXWVWDQGLQJ&UHGLW([WHQVLRQV H[FOXGLQJWKRVHPDGHLQUHVSHFWRIWKH7HUP /RDQ SOXV  RXWVWDQGLQJORDQVDQGXQIXQGHGFRPPLWPHQWVXQGHUWKH',3 


 
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pro rata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pro rataWR5HYROYLQJ/RDQ/HQGHUVWRWKHSD\PHQWRIRXWVWDQGLQJ SULQFLSDORQWKH5HYROYLQJ/RDQV (,*+7+WRWKH&DVK&ROODWHUDO$FFRXQWDVFROODWHUDOIRU/HWWHURI&UHGLW 2XWVWDQGLQJVXSWRWKHUHRI 1,17+WRWKHSD\PHQWRIDOO2EOLJDWLRQVRIWKH/RDQ3DUWLHVVHWIRUWKLQFODXVH F L RIWKHGHILQLWLRQRI2EOLJDWLRQV 7(17+WRWKHSD\PHQWRIDOO2EOLJDWLRQVRIWKH/RDQ3DUWLHVVHWIRUWKLQFODXVH F LL RIWKHGHILQLWLRQRI2EOLJDWLRQVDQG 


 
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


 
HUURURIMXGJPHQWRUIRUDQ\ORVVH[FHSWWRWKHH[WHQWRIDQ\OLDELOLW\LPSRVHGE\ODZE\UHDVRQ RIVXFK$JHQW¶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


 
6(&7,21 1RWLFHRI'HIDXOW$FWLRQVRQ'HIDXOW D 7KH$JHQWVVKDOOQRWEHGHHPHGWRKDYHNQRZOHGJHRUQRWLFHRIWKH RFFXUUHQFHRIDQ\'HIDXOWRU(YHQWRI'HIDXOWXQOHVVWKH$JHQWVKDYHDFWXDONQRZOHGJHRIWKH VDPHRUKDVUHFHLYHGQRWLFHIURPD/HQGHURUWKH/RDQ3DUWLHVUHIHUULQJWRWKLV$JUHHPHQW GHVFULELQJVXFK'HIDXOWRU(YHQWRI'HIDXOWDQGVWDWLQJWKDWVXFKQRWLFHLVD³QRWLFHRIGHIDXOW´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¶&UHGLW'HFLVLRQV(DFK/HQGHUDFNQRZOHGJHVWKDWLWKDV LQGHSHQGHQWO\DQGZLWKRXWUHOLDQFHXSRQWKH$JHQWVRUDQ\RWKHU/HQGHUDQGEDVHGRQWKH ILQDQFLDOVWDWHPHQWVSUHSDUHGE\WKH/RDQ3DUWLHVDQGVXFKRWKHUGRFXPHQWVDQGLQIRUPDWLRQDVLW KDVGHHPHGDSSURSULDWHPDGHLWVRZQFUHGLWDQDO\VLVDQGLQYHVWLJDWLRQLQWRWKHEXVLQHVVDVVHWV RSHUDWLRQVSURSHUW\DQGILQDQFLDODQGRWKHUFRQGLWLRQRIWKH/RDQ3DUWLHVDQGKDVPDGHLWVRZQ GHFLVLRQWRHQWHULQWRWKLV$JUHHPHQWDQGWKHRWKHU/RDQ'RFXPHQWVDQGDJUHHVWKDWWKH$JHQWV VKDOOEHDUQRUHVSRQVLELOLW\WKHUHIRU(DFK/HQGHUDOVRDFNQRZOHGJHVWKDWLWZLOOLQGHSHQGHQWO\ DQGZLWKRXWUHOLDQFHXSRQWKH$JHQWVRUDQ\RWKHU/HQGHUDQGEDVHGRQVXFKGRFXPHQWVDQG LQIRUPDWLRQDVLWVKDOOGHHPDSSURSULDWHDWWKHWLPHFRQWLQXHWRPDNHLWVRZQFUHGLWGHFLVLRQVLQ GHWHUPLQLQJZKHWKHURUQRWFRQGLWLRQVSUHFHGHQWWRFORVLQJDQ\/RDQKHUHXQGHUKDYHEHHQ VDWLVILHGDQGLQWDNLQJRUQRWWDNLQJDQ\DFWLRQXQGHUWKLV$JUHHPHQWDQGWKHRWKHU/RDQ 'RFXPHQWV 6(&7,21 5HLPEXUVHPHQWDQG,QGHPQLILFDWLRQ :LWKRXWOLPLWLQJWKH/RDQ3DUWLHV¶REOLJDWLRQVKHUHXQGHUHDFK/HQGHUDJUHHV D WR UHLPEXUVH L HDFK$JHQWIRUVXFK/HQGHU¶V&RPPLWPHQW3HUFHQWDJHRIDQ\H[SHQVHVDQGIHHV LQFXUUHGE\VXFK$JHQWIRUWKHEHQHILWRIWKH/HQGHUVRUWKH,VVXLQJ%DQNXQGHUWKLV$JUHHPHQW WKH1RWHVDQGDQ\RIWKH/RDQ'RFXPHQWVLQFOXGLQJZLWKRXWOLPLWDWLRQFRXQVHOIHHVDQG FRPSHQVDWLRQRIDJHQWVDQGHPSOR\HHVSDLGIRUVHUYLFHVUHQGHUHGRQEHKDOIRIWKH/HQGHUVRUWKH ,VVXLQJ%DQNDQGDQ\RWKHUH[SHQVHLQFXUUHGLQFRQQHFWLRQZLWKWKHRSHUDWLRQVRUHQIRUFHPHQW WKHUHRIQRWUHLPEXUVHGE\WKH/RDQ3DUWLHVDQG LL HDFK$JHQWIRUVXFK/HQGHU¶V&RPPLWPHQW 3HUFHQWDJHRIDQ\H[SHQVHVRIVXFK$JHQWLQFXUUHGIRUWKHEHQHILWRIWKH/HQGHUVRUWKH,VVXLQJ %DQNWKDWWKH/RDQ3DUWLHVKDYHDJUHHGWRUHLPEXUVHSXUVXDQWWR6HFWLRQDQGKDVIDLOHGWRVR UHLPEXUVHDQG E WRLQGHPQLI\DQGKROGKDUPOHVVWKH$JHQWVDQGDQ\RIWKHLUGLUHFWRUVRIILFHUV HPSOR\HHVRUDJHQWVRQGHPDQGLQWKHDPRXQWRIVXFK/HQGHU¶V&RPPLWPHQW3HUFHQWDJHIURP DQGDJDLQVWDQ\DQGDOOOLDELOLWLHVREOLJDWLRQVORVVHVGDPDJHVSHQDOWLHVDFWLRQVMXGJPHQWV VXLWVFRVWVH[SHQVHVRUGLVEXUVHPHQWVRIDQ\NLQGRUQDWXUHZKDWVRHYHUZKLFKPD\EHLPSRVHG RQLQFXUUHGE\RUDVVHUWHGDJDLQVWLWRUDQ\RIWKHPLQDQ\ZD\UHODWLQJWRRUDULVLQJRXWRIWKLV 


 
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¶VSRUWLRQRIWKH/RDQVIRUDOOSXUSRVHVXQOHVVDQGXQWLODQGH[FHSWWRWKHH[WHQWDQ $VVLJQPHQWDQG$FFHSWDQFHVKDOOKDYHEHFRPHHIIHFWLYHDVVHWIRUWKLQ6HFWLRQ E  6(&7,21 6XFFHVVRU$JHQW $Q\$JHQWPD\UHVLJQDWDQ\WLPHE\JLYLQJILYH  %XVLQHVV'D\V¶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¶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¶VUHVLJQDWLRQKHUHXQGHUDV VXFK$JHQWWKHSURYLVLRQVRIWKLV$UWLFOH9,,,VKDOOLQXUHWRLWVEHQHILWDVWRDQ\DFWLRQVWDNHQRU RPLWWHGWREHWDNHQE\LWZKLOHLWZDVVXFK$JHQWXQGHUWKLV$JUHHPHQW 


 
6(&7,21 5HSRUWVDQG)LQDQFLDO6WDWHPHQWV D 3URPSWO\DIWHUUHFHLSWWKHUHRIIURPWKH%RUURZHUWKH$GPLQLVWUDWLYH $JHQWVKDOOUHPLWWRHDFK/HQGHUDQGWKH&ROODWHUDO$JHQWFRSLHVRIDOOILQDQFLDO VWDWHPHQWVUHTXLUHGWREHGHOLYHUHGE\WKH%RUURZHUKHUHXQGHUDQGDOOFRPPHUFLDO ILQDQFHH[DPLQDWLRQVDQGDSSUDLVDOVRIWKH&ROODWHUDOUHFHLYHGE\WKH$GPLQLVWUDWLYH $JHQWDQGDOOQRWLFHVUHFHLYHGE\WKH$GPLQLVWUDWLYH$JHQWXQGHU6HFWLRQKHUHRI DQGDFRS\RIDQ\%RUURZLQJ%DVH&HUWLILFDWHVRUHFHLYHG FROOHFWLYHO\WKH³5HSRUWV´  7KH5HSRUWVUHTXLUHGWREHGHOLYHUHGSXUVXDQWWRWKLVSDUDJUDSKVKDOOEHGHHPHGWRKDYH EHHQGHOLYHUHGRQWKHGDWHRQZKLFKWKH$GPLQLVWUDWLYH$JHQWSURYLGHVQRWLFHWRWKH /HQGHUVDQGWKH&ROODWHUDO$JHQWWKDWVXFKLQIRUPDWLRQKDVEHHQSRVWHGRQWKH,QWHUQHW DQGLVDFFHVVLEOHE\WKH/HQGHUVDQGWKH&ROODWHUDO$JHQWZLWKRXWFKDUJH E %\VLJQLQJWKLV$JUHHPHQWHDFK/HQGHU L DJUHHVWRIXUQLVKWKH$GPLQLVWUDWLYH$JHQWDQGWKH7HUP/RDQ $JHQWZLWKDVXPPDU\RIDOO%DQN3URGXFWV LQFOXGLQJZLWKRXWOLPLWDWLRQDOO +HGJLQJ$JUHHPHQWV DQG&DVK0DQDJHPHQW6HUYLFHVGXHIURPD/RDQ3DUW\RU WREHFRPHGXHWRVXFK/HQGHUIURPWLPHWRWLPH,QFRQQHFWLRQZLWKDQ\ GLVWULEXWLRQVWREHPDGHKHUHXQGHUWKH$GPLQLVWUDWLYH$JHQWDQGWKH7HUP/RDQ $JHQWVKDOOEHHQWLWOHGWRDVVXPHWKDWQRDPRXQWVDUHGXHIURPD/RDQ3DUW\WR DQ\/HQGHURQDFFRXQWRIDQ\%DQN3URGXFWVRU&DVK0DQDJHPHQW6HUYLFHV XQOHVVWKH$GPLQLVWUDWLYH$JHQWDQGRUWKH7HUP/RDQ$JHQWDVDSSOLFDEOHKDV UHFHLYHGZULWWHQQRWLFHWKHUHRIIURPVXFK/HQGHU LL H[SUHVVO\DJUHHVDQGDFNQRZOHGJHVWKDWQHLWKHUWKH$GPLQLVWUDWLYH $JHQWQRUWKH7HUP/RDQ$JHQWPDNHVQRDQ\UHSUHVHQWDWLRQRUZDUUDQW\DVWRWKH DFFXUDF\RIWKH5HSRUWVDQGVKDOOQRWEHOLDEOHIRUDQ\LQIRUPDWLRQFRQWDLQHGLQ DQ\5HSRUW LLL H[SUHVVO\DJUHHVDQGDFNQRZOHGJHVWKDWWKH5HSRUWVDUHQRW FRPSUHKHQVLYHDXGLWVRUH[DPLQDWLRQVWKDWWKH$JHQWVRUDQ\RWKHUSDUW\ SHUIRUPLQJDQ\DXGLWRUH[DPLQDWLRQZLOOLQVSHFWRQO\VSHFLILFLQIRUPDWLRQ UHJDUGLQJWKH/RDQ3DUWLHVDQGZLOOUHO\VLJQLILFDQWO\XSRQWKH%RUURZHU¶VERRNV DQGUHFRUGVDVZHOODVRQUHSUHVHQWDWLRQVRIWKH%RUURZHU¶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³'HOLQTXHQW/HQGHU´ DQGVXFKIDLOXUHLVQRWFXUHGZLWKLQ WZR  %XVLQHVV'D\VDIWHUUHFHLSWIURPWKH$GPLQLVWUDWLYH$JHQWRIZULWWHQQRWLFH WKHUHRIWKHQLQDGGLWLRQWRWKHULJKWVDQGUHPHGLHVWKDWPD\EHDYDLODEOHWR$JHQWVRWKHU 5HYROYLQJ/RDQ/HQGHUVWKH/RDQ3DUWLHVRUDQ\RWKHUSDUW\DWODZRULQHTXLW\DQGQRW DWOLPLWDWLRQWKHUHRIVXFK'HWHULRUDWLQJ/HQGHURU'HOLQTXHQW/HQGHU¶VULJKWWR SDUWLFLSDWHLQWKHDGPLQLVWUDWLRQRIRUGHFLVLRQPDNLQJULJKWVUHODWHGWRWKH5HYROYLQJ /RDQVWKLV$JUHHPHQWRUWKHRWKHU/RDQ'RFXPHQWVVKDOOEHVXVSHQGHGGXULQJWKH SHQGHQF\RIVXFKIDLOXUHRUUHIXVDO)XUWKHUQRWZLWKVWDQGLQJWKHSURYLVLRQVRI6HFWLRQ KHUHRIWKH$GPLQLVWUDWLYH$JHQWVKDOOQRWEHREOLJDWHGWRWUDQVIHUWRD'HOLQTXHQW /HQGHUDQ\SD\PHQWVPDGHE\WKH%RUURZHUWRWKH$GPLQLVWUDWLYH$JHQWIRUWKH 'HOLQTXHQW/HQGHU¶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¶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


 
WKHUHZLWK DQGIRUWKHSXUSRVHRIFDOFXODWLQJWKHIHHVSD\DEOHXQGHU6HFWLRQDQG VXFK'HOLQTXHQW/HQGHUVKDOOEHGHHPHGQRWWREHD³5HYROYLQJ/RDQ/HQGHU´DQG VXFK5HYROYLQJ/RDQ/HQGHU¶V5HYROYLQJ/RDQ&RPPLWPHQWVKDOOEHGHHPHGWREH]HUR SURYLGHGWKDWWKHIRUHJRLQJVKDOOQRWDSSO\WRDQ\RIWKHPDWWHUVJRYHUQHGE\VXEFODXVHV L  LL RU LLL XQGHU6HFWLRQ E 7KHSURYLVLRQVRIWKLV6HFWLRQVKDOOUHPDLQ HIIHFWLYHZLWKUHVSHFWWRVXFK'HOLQTXHQW/HQGHUXQWLOWKHHDUOLHURI \ WKHGDWHRQZKLFK DOORIWKH1RQ'HOLQTXHQW/HQGHUVWKH$GPLQLVWUDWLYH$JHQWWKH,VVXLQJ%DQNDQGWKH %RUURZHUVKDOOKDYHZDLYHGLQZULWLQJWKHDSSOLFDWLRQRIWKLV6HFWLRQWRVXFK 'HOLQTXHQW/HQGHURU ] WKHGDWHRQZKLFKVXFK'HOLQTXHQW/HQGHUSD\VWRWKH $GPLQLVWUDWLYH$JHQWDOODPRXQWVRZLQJE\VXFK'HOLQTXHQW/HQGHULQUHVSHFWRIWKH DPRXQWVWKDWLWZDVREOLJDWHGWRIXQGKHUHXQGHUDQGLIUHTXHVWHGE\WKH$GPLQLVWUDWLYH $JHQWSURYLGHVDGHTXDWHDVVXUDQFHRILWVDELOLW\WRSHUIRUPLWVIXWXUHREOLJDWLRQV KHUHXQGHU RQZKLFKHDUOLHUGDWHVRORQJDVQR(YHQWRI'HIDXOWKDVRFFXUUHGDQGLV FRQWLQXLQJDQ\UHPDLQLQJFDVKFROODWHUDOKHOGE\WKH$GPLQLVWUDWLYH$JHQWSXUVXDQWWR 6HFWLRQ E VKDOOEHUHOHDVHGWRWKH%RUURZHU 7KHRSHUDWLRQRIWKLV6HFWLRQ VKDOOQRWEHFRQVWUXHGWRLQFUHDVHRURWKHUZLVHDIIHFWWKH5HYROYLQJ/RDQ&RPPLWPHQWRI DQ\5HYROYLQJ/RDQ/HQGHUWRUHOLHYHRUH[FXVHWKHSHUIRUPDQFHE\VXFK'HOLQTXHQW /HQGHURUDQ\RWKHU5HYROYLQJ/RDQ/HQGHURILWVGXWLHVDQGREOLJDWLRQVKHUHXQGHURUWR UHOLHYHRUH[FXVHWKHSHUIRUPDQFHE\DQ\WKH%RUURZHURILWVGXWLHVDQGREOLJDWLRQV KHUHXQGHUWRWKH$GPLQLVWUDWLYHDQ\$JHQWWKH,VVXLQJ%DQNWKH6ZLQJOLQH/HQGHURUWR WKH5HYROYLQJ/RDQ/HQGHUVRWKHUWKDQVXFK'HOLQTXHQW/HQGHU$Q\IDLOXUHE\D 'HOLQTXHQW/HQGHUWRIXQGDPRXQWVWKDWLWZDVREOLJDWHGWRIXQGKHUHXQGHUVKDOO FRQVWLWXWHDPDWHULDOEUHDFKE\VXFK'HOLQTXHQW/HQGHURIWKLV$JUHHPHQWDQGVKDOO HQWLWOHWKH%RUURZHUDWWKHLURSWLRQXSRQZULWWHQQRWLFHWRWKH$GPLQLVWUDWLYH$JHQWWR DUUDQJHIRUDVXEVWLWXWH5HYROYLQJ/RDQ/HQGHUWRDVVXPHWKH5HYROYLQJ/RDQ &RPPLWPHQWRIVXFK'HOLQTXHQW/HQGHUVXFKVXEVWLWXWH5HYROYLQJ/RDQ/HQGHUWREH UHDVRQDEO\DFFHSWDEOHWRWKH$GPLQLVWUDWLYH$JHQW,QFRQQHFWLRQZLWKWKHDUUDQJHPHQW RIVXFKDVXEVWLWXWH5HYROYLQJ/RDQ/HQGHUWKH'HOLQTXHQW/HQGHUVKDOOKDYHQRULJKWWR UHIXVHWREHUHSODFHGKHUHXQGHUDQGDJUHHVWRH[HFXWHDQGGHOLYHUDFRPSOHWHGIRUPRI $VVLJQPHQWDQG$VVXPSWLRQ$FFHSWDQFHLQIDYRURIWKHVXEVWLWXWH5HYROYLQJ/RDQ /HQGHU DQGDJUHHVWKDWLWVKDOOEHGHHPHGWRKDYHH[HFXWHGDQGGHOLYHUHGVXFKGRFXPHQW LILWIDLOVWRGRVR VXEMHFWRQO\WREHLQJSDLGLWVVKDUHRIWKHRXWVWDQGLQJ2EOLJDWLRQV LQFOXGLQJ  DOOLQWHUHVWIHHV H[FHSWDQ\&RPPLWPHQW)HHVRU/HWWHURI&UHGLW)HHVQRW GXHWRVXFK'HOLQTXHQW/HQGHULQDFFRUGDQFHZLWKWKHWHUPVRIWKLV$JUHHPHQW DQG RWKHUDPRXQWVWKDWPD\EHGXHDQGSD\DEOHLQUHVSHFWWKHUHRIDQG  DQDVVXPSWLRQRI LWV$SSOLFDEOH&RPPLWPHQW3HUFHQWDJHRILWVSDUWLFLSDWLRQLQWKH/HWWHUVRI&UHGLWEXW H[FOXGLQJ2EOLJDWLRQVLQUHVSHFWRIWKH7HUP/RDQ SURYLGHGWKDWDQ\VXFKDVVXPSWLRQ RIWKH5HYROYLQJ/RDQ&RPPLWPHQWRIVXFK'HOLQTXHQW/HQGHUVKDOOQRWEHGHHPHGWR FRQVWLWXWHDZDLYHURIDQ\RIWKH&UHGLW3DUWLHV¶RUWKH/RDQ3DUWLHV¶ULJKWVRUUHPHGLHV DJDLQVWDQ\VXFK'HOLQTXHQW/HQGHUDULVLQJRXWRIRULQUHODWLRQWRVXFKIDLOXUHWRIXQG ,QWKHHYHQWRIDGLUHFWFRQIOLFWEHWZHHQWKHSULRULW\SURYLVLRQVRIWKLV6HFWLRQDQG DQ\RWKHUSURYLVLRQFRQWDLQHGLQWKLV$JUHHPHQWRUDQ\RWKHU/RDQ'RFXPHQWLWLVWKH LQWHQWLRQRIWKHSDUWLHVKHUHWRWKDWVXFKSURYLVLRQVEHUHDGWRJHWKHUDQGFRQVWUXHGWRWKH IXOOHVWH[WHQWSRVVLEOHWREHLQFRQFHUWZLWKHDFKRWKHU,QWKHHYHQWRIDQ\DFWXDO LUUHFRQFLODEOHFRQIOLFWWKDWFDQQRWEHUHVROYHGDVDIRUHVDLGWKHWHUPVDQGSURYLVLRQVRI 


 
WKLV6HFWLRQVKDOOFRQWURODQGJRYHUQ7KH'HOLQTXHQW/HQGHU¶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¶VSDUWLFLSDWLRQLQWHUHVWLQDQ\6ZLQJOLQH /RDQRU/HWWHURI&UHGLWVKDOOEHUHDOORFDWHGDPRQJWKH1RQ'HOLQTXHQW/HQGHUVLQ DFFRUGDQFHZLWKWKHLUUHVSHFWLYH$SSOLFDEOH5HYROYLQJ/RDQ&RPPLWPHQW3HUFHQWDJHV EXWRQO\WRWKHH[WHQW [ WKH2XWVWDQGLQJ$PRXQWRXWVWDQGLQJDPRXQWVXPRIDOO 1RQ'HOLQTXHQW/HQGHUV¶&UHGLW([WHQVLRQV H[FOXGLQJWKRVHPDGHLQUHVSHFWRIWKH 7HUP/RDQ DIWHUJLYLQJHIIHFWWRVXFKUHDOORFDWLRQGRHVQRWH[FHHGWKHWRWDORIDOO 1RQ'HOLQTXHQW/HQGHUV¶5HYROYLQJ/RDQ&RPPLWPHQWVDQG \ WKHFRQGLWLRQVVHWIRUWK LQ6HFWLRQDUHVDWLVILHGDWVXFKWLPH LL LIWKHUHDOORFDWLRQGHVFULEHGLQFODXVH E L DERYHFDQQRWRUFDQ RQO\SDUWLDOO\EHHIIHFWHGWKH%RUURZHUVKDOOZLWKLQRQH%XVLQHVV'D\IROORZLQJQRWLFH E\WKH$GPLQLVWUDWLYH$JHQW [ ILUVWSUHSD\VXFK'HOLQTXHQW/HQGHU¶VSDUWLFLSDWLRQLQ DQ\RXWVWDQGLQJ6ZLQJOLQH/RDQV DIWHUJLYLQJHIIHFWWRDQ\SDUWLDOUHDOORFDWLRQSXUVXDQW WRFODXVH E L DERYH DQG \ VHFRQGFDVKFROODWHUDOL]HVXFK'HOLQTXHQW/HQGHU¶V SDUWLFLSDWLRQLQ/HWWHUVRI&UHGLW DIWHUJLYLQJHIIHFWWRDQ\SDUWLDOUHDOORFDWLRQSXUVXDQWWR FODXVH E L DERYH SXUVXDQWWRDFDVKFROODWHUDODJUHHPHQWWREHHQWHUHGLQWRLQIRUP DQGVXEVWDQFHUHDVRQDEO\VDWLVIDFWRU\WRWKH$GPLQLVWUDWLYH$JHQWIRUVRORQJDVVXFK /&%DQN2EOLJDWLRQVDUHRXWVWDQGLQJSURYLGHGWKDWWKH%RUURZHUVKDOOQRWEHREOLJDWHG WRFDVKFROODWHUDOL]HDQ\'HOLQTXHQW/HQGHU¶VSDUWLFLSDWLRQVLQ/HWWHUVRI&UHGLWLIVXFK 'HOLQTXHQW/HQGHULVDOVRWKH,VVXLQJ%DQN LLL LIWKH%RUURZHUFDVKFROODWHUDOL]HVDQ\SRUWLRQRIVXFK'HOLQTXHQW /HQGHU¶VSDUWLFLSDWLRQLQ/HWWHUVRI&UHGLW([SRVXUHSXUVXDQWWRWKLV6HFWLRQ E WKH %RUURZHUVKDOOQRWEHUHTXLUHGWRSD\DQ\/HWWHURI&UHGLW)HHVWRWKH$GPLQLVWUDWLYH $JHQWIRUWKHDFFRXQWRIVXFK'HOLQTXHQW/HQGHUSXUVXDQWWR6HFWLRQZLWKUHVSHFWWR VXFKFDVKFROODWHUDOL]HGSRUWLRQRIVXFK'HOLQTXHQW/HQGHU¶VSDUWLFLSDWLRQLQ/HWWHUVRI &UHGLWGXULQJWKHSHULRGVXFKSDUWLFLSDWLRQLVFDVKFROODWHUDOL]HG LY WRWKHH[WHQWWKHSDUWLFLSDWLRQE\DQ\1RQ'HOLQTXHQW/HQGHULQ WKH/HWWHUVRI&UHGLWLVUHDOORFDWHGSXUVXDQWWRWKLV6HFWLRQ E WKHQWKH/HWWHURI &UHGLW)HHVSD\DEOHWRWKH1RQ'HOLQTXHQW/HQGHUVSXUVXDQWWR6HFWLRQVKDOOEH DGMXVWHGLQDFFRUGDQFHZLWKVXFKUHDOORFDWLRQ Y WRWKHH[WHQWDQ\'HOLQTXHQW/HQGHU¶VSDUWLFLSDWLRQLQ/HWWHUVRI &UHGLWLVQHLWKHUFDVKFROODWHUDOL]HGQRUUHDOORFDWHGSXUVXDQWWRWKLV6HFWLRQ E WKHQ 


 
ZLWKRXWSUHMXGLFHWRDQ\ULJKWVRUUHPHGLHVRIWKH,VVXLQJ%DQNRUDQ\5HYROYLQJ/RDQ /HQGHUKHUHXQGHUDOO/HWWHURI&UHGLW)HHVWKDWZRXOGKDYHRWKHUZLVHEHHQSD\DEOHWR VXFK'HOLQTXHQW/HQGHUXQGHU6HFWLRQZLWKUHVSHFWWRVXFKSRUWLRQRIVXFK SDUWLFLSDWLRQVKDOOLQVWHDGEHSD\DEOHWRWKH,VVXLQJ%DQNXQWLOVXFKSRUWLRQRIVXFK 'HOLQTXHQW/HQGHU¶VSDUWLFLSDWLRQLVFDVKFROODWHUDOL]HGRUUHDOORFDWHG YL VRORQJDVDQ\5HYROYLQJ/RDQ/HQGHULVD'HOLQTXHQW/HQGHUWKH 6ZLQJOLQH/HQGHUVKDOOQRWEHUHTXLUHGWRPDNHDQ\6ZLQJOLQH/RDQDQGWKH,VVXLQJ %DQNVKDOOQRWEHUHTXLUHGWRLVVXHDPHQGRULQFUHDVHDQ\/HWWHURI&UHGLWLQHDFKFDVH WRWKHH[WHQW [ WKH'HOLQTXHQW/HQGHU¶V$SSOLFDEOH5HYROYLQJ/RDQ&RPPLWPHQW 3HUFHQWDJHRIVXFK6ZLQJOLQH/RDQVRU/HWWHURI&UHGLWFDQQRWEHUHDOORFDWHGSXUVXDQWWR WKLV6HFWLRQ E RU \ WKH6ZLQJOLQH/HQGHURUWKH,VVXLQJ%DQNDVDSSOLFDEOHKDV QRWRWKHUZLVHHQWHUHGLQWRDUUDQJHPHQWVUHDVRQDEO\VDWLVIDFWRU\WRWKH6ZLQJOLQH/HQGHU RUWKH,VVXLQJ%DQNDVDSSOLFDEOHDQGWKH%RUURZHUWRHOLPLQDWHWKH6ZLQJOLQH/HQGHU¶V RU,VVXLQJ%DQN¶VULVNZLWKUHVSHFWWRWKH'HOLQTXHQW/HQGHU¶VSDUWLFLSDWLRQLQ6ZLQJOLQH /RDQVRU/HWWHUVRI&UHGLWDQG YLL 7KH$GPLQLVWUDWLYH$JHQWPD\UHOHDVHDQ\FDVKFROODWHUDO SURYLGHGE\WKH%RUURZHUSXUVXDQWWRWKLV6HFWLRQ E WRWKH,VVXLQJ%DQNDQGWKH ,VVXLQJ%DQNPD\DSSO\DQ\VXFKFDVKFROODWHUDOWRWKHSD\PHQWRIVXFK'HOLQTXHQW /HQGHU¶V5HYROYLQJ/RDQ&RPPLWPHQW3HUFHQWDJHRIDQ\/HWWHURI&UHGLW/& 'LVEXUVHPHQWWKDWLVQRWUHLPEXUVHGE\WKH%RUURZHUSXUVXDQWWR6HFWLRQ F 7KHQRQGHOLQTXHQW5HYROYLQJ/RDQ/HQGHUVVKDOODOVRKDYHWKHULJKWEXW QRWWKHREOLJDWLRQLQWKHLUUHVSHFWLYHVROHDQGDEVROXWHGLVFUHWLRQWRDFTXLUHIRUQRFDVK FRQVLGHUDWLRQ SURUDWDEDVHGRQWKHUHVSHFWLYH5HYROYLQJ/RDQ&RPPLWPHQWVRIWKRVH /HQGHUVHOHFWLQJWRH[HUFLVHVXFKULJKW WKH'HWHULRUDWLQJ/HQGHU¶VRU'HOLQTXHQW /HQGHU¶V&RPPLWPHQWWRIXQGIXWXUH/RDQV WKH³'HOLQTXHQW/HQGHU¶V)XWXUH &RPPLWPHQW´ 8SRQDQ\VXFKSXUFKDVHRIWKH5HYROYLQJ/RDQ&RPPLWPHQW 3HUFHQWDJHRIDQ\'HWHULRUDWLQJ/HQGHU¶VRU'HOLQTXHQW/HQGHU¶V)XWXUH&RPPLWPHQW WKH'HWHULRUDWLQJ/HQGHU¶VRU'HOLQTXHQW/HQGHU¶VVKDUHLQIXWXUH5HYROYLQJ/RDQVDQG LWVULJKWVXQGHUWKH/RDQ'RFXPHQWVZLWKUHVSHFWWKHUHWRVKDOOWHUPLQDWHRQWKHGDWHRI SXUFKDVHDQGWKH'HWHULRUDWLQJ/HQGHU¶VRU'HOLQTXHQW/HQGHUVKDOOSURPSWO\H[HFXWHDOO GRFXPHQWVUHDVRQDEO\UHTXHVWHGWRVXUUHQGHUDQGWUDQVIHUVXFKLQWHUHVWLQFOXGLQJLIVR UHTXHVWHGDQ$VVLJQPHQWDQG$FFHSWDQFH(DFK'HWHULRUDWLQJ/HQGHUDQG'HOLQTXHQW /HQGHUVKDOOLQGHPQLI\WKH$JHQWVDQGHDFKQRQGHOLQTXHQW/HQGHUIURPDQGDJDLQVWDQ\ DQGDOOORVVGDPDJHRUH[SHQVHVLQFOXGLQJEXWQRWOLPLWHGWRUHDVRQDEOHDWWRUQH\V¶IHHV DQGIXQGVDGYDQFHGE\DQ\$JHQWRWKHUWKDQ7HUP/RDQ$JHQWRUE\DQ\QRQGHOLQTXHQW 5HYROYLQJ/RDQ/HQGHURQDFFRXQWRID'HWHULRUDWLQJ/HQGHU¶VRU'HOLQTXHQW/HQGHU¶V IDLOXUHWRWLPHO\IXQGLWV5HYROYLQJ/RDQ&RPPLWPHQW3HUFHQWDJHRID5HYROYLQJ/RDQ RUWRRWKHUZLVHSHUIRUPLWVREOLJDWLRQVXQGHUWKH/RDQ'RFXPHQWV 6(&7,21 $UUDQJHUV'RFXPHQWDWLRQ$JHQWDQG&R6\QGLFDWLRQ$JHQWV 1RWZLWKVWDQGLQJWKHSURYLVLRQVRIWKLV$JUHHPHQWRUDQ\RIWKHRWKHU/RDQ'RFXPHQWVWKH 'RFXPHQWDWLRQ$JHQWWKH&R6\QGLFDWLRQ$JHQWVDQGH[FHSWDVSURYLGHGLQ6HFWLRQ 


 
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¶VUHTXHVWWKHUHIRUVKDOOGHOLYHUVXFK&ROODWHUDOWRWKH&ROODWHUDO$JHQWRU RWKHUZLVHGHDOZLWKVXFK&ROODWHUDOLQDFFRUGDQFHZLWKWKH&ROODWHUDO$JHQW¶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¶VDXWKRULW\WRUHOHDVHRUVXERUGLQDWHLWV LQWHUHVWLQSDUWLFXODUW\SHVRULWHPVRISURSHUW\RUWRUHOHDVHDQ\)DFLOLW\*XDUDQWRUIURPLWV REOLJDWLRQVXQGHUWKH)DFLOLW\*XDUDQW\SXUVXDQWWRWKLV6HFWLRQ,QHDFKFDVHDVVSHFLILHG LQWKLV6HFWLRQWKH$JHQWV$GPLQLVWUDWLYH$JHQWDQGWKH&ROODWHUDO$JHQWZLOODWWKH %RUURZHU¶VH[SHQVHH[HFXWHDQGGHOLYHUWRWKHDSSOLFDEOH/RDQ3DUW\VXFKGRFXPHQWVDVVXFK 


 
SDUW\PD\UHDVRQDEO\UHTXHVWWRHYLGHQFHWKHUHOHDVHRIVXFKLWHPRI&ROODWHUDOIURPWKH DVVLJQPHQWDQGVHFXULW\LQWHUHVWJUDQWHGXQGHUWKH6HFXULW\'RFXPHQWVRUWRVXERUGLQDWHLWV LQWHUHVWLQVXFKLWHPRUWRUHOHDVHVXFK)DFLOLW\*XDUDQWRUIURPLWVREOLJDWLRQVXQGHUWKH)DFLOLW\ *XDUDQW\LQHDFKFDVHLQDFFRUGDQFHZLWKWKHWHUPVRIWKH/RDQ'RFXPHQWVDQGWKLV6HFWLRQ  6(&7,21 3URYLGHUV (DFKSURYLGHURI%DQN3URGXFWVRU&DVK0DQDJHPHQW6HUYLFHV HDFKD³3URYLGHU´ LQLWV FDSDFLW\DVVXFKVKDOOEHGHHPHGDWKLUGSDUW\EHQHILFLDU\KHUHRIDQGRIWKHSURYLVLRQVRIWKH RWKHU/RDQ'RFXPHQWVIRUSXUSRVHVRIDQ\UHIHUHQFHLQD/RDQ'RFXPHQWWRWKHSDUWLHVIRU ZKRPWKH$JHQWVDUHDFWLQJ(DFK$JHQWKHUHE\DJUHHVWRDFWDVDJHQWIRUVXFK3URYLGHUVDQG E\YLUWXHRIHQWHULQJLQWRDQDJUHHPHQWLQUHVSHFWRI%DQN3URGXFWVRU&DVK0DQDJHPHQW 6HUYLFHV HDFKD³6SHFLILHG$JUHHPHQW´ WKHDSSOLFDEOH3URYLGHUVKDOOEHDXWRPDWLFDOO\GHHPHG WRKDYHDSSRLQWHGHDFK$JHQWDVLWVDJHQWDQGWRKDYHDFFHSWHGWKHEHQHILWVRIWKH/RDQ 'RFXPHQWV,WLVXQGHUVWRRGDQGDJUHHGWKDWWKHULJKWVDQGEHQHILWVRIHDFK3URYLGHUXQGHUWKH /RDQ'RFXPHQWVFRQVLVWH[FOXVLYHO\RIVXFK3URYLGHU¶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


 
H[FHSWDVSURYLGHGLQ6HFWLRQ ZLWKRXWWKHFRQVHQWRIHDFK5HYROYLQJ/RDQ /HQGHUDIIHFWHGWKHUHE\ LL RULQFUHDVHWKHDJJUHJDWHSULQFLSDOEDODQFHRIWKH 7HUP/RDQV H[FHSWDVSURYLGHGLQ6HFWLRQ$ ZLWKRXWWKHFRQVHQWRIWKH 5HTXLUHG5HYROYLQJ/RDQ/HQGHUVDQGHDFK7HUP/RDQ/HQGHU LL UHGXFHWKHSULQFLSDODPRXQWRIDQ\/RDQRU/&'LVEXUVHPHQWRU UHGXFHWKHUDWHRILQWHUHVWWKHUHRQRUUHGXFHDQ\IHHVSD\DEOHKHUHXQGHUZLWKRXW WKH&RQVHQWRIHDFK/HQGHUDIIHFWHGWKHUHE\ LLL  LLL SRVWSRQHWKHVFKHGXOHGGDWHRISD\PHQWRIWKHSULQFLSDODPRXQWRI DQ\5HYROYLQJ/RDQRU/&'LVEXUVHPHQWRUDQ\LQWHUHVWWKHUHRQRUDQ\IHHV SD\DEOHKHUHXQGHURUUHGXFHWKHDPRXQWRIZDLYHRUH[FXVHDQ\VXFKSD\PHQW RUSRVWSRQHWKHVFKHGXOHGGDWHRIH[SLUDWLRQRIWKH&RPPLWPHQWVRUWKH0DWXULW\ 'DWHZLWKRXWWKH&RQVHQWRIHDFK/HQGHUDIIHFWHGWKHUHE\ LY  LY FKDQJH6HFWLRQV$RU ZLWKRXWWKH&RQVHQWRIHDFK/HQGHU Y  Y FKDQJHDQ\RIWKHSURYLVLRQVRIWKLV6HFWLRQRUWKHGHILQLWLRQ RIWKHWHUPWHUPV³5HTXLUHG/HQGHUV´³5HTXLUHG5HYROYLQJ/RDQ/HQGHUV´ ³5HTXLUHG7HUP/RDQ/HQGHUV´RU³5HTXLUHG6XSHUPDMRULW\/HQGHUV´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³ZLWKRXWWKH&RQVHQWRIHDFK /HQGHU YLLL ZLWKRXWWKHFRQVHQWRIDOO5HYROYLQJ/RDQ/HQGHUVDQGDOO7HUP /RDQ/HQGHUVDPHQGWKHGHILQLWLRQRI³5HYROYLQJ/RDQ%RUURZLQJ%DVH´RUDQ\ FRPSRQHQWGHILQLWLRQWKHUHRIRIDQ\RIWKHIRUHJRLQJLIDVDUHVXOWWKHUHRIWKH DPRXQWVDYDLODEOHWREHERUURZHGE\WKH%RUURZHUZRXOGEHLQFUHDVHGZLWKRXW WKH&RQVHQWRIHDFK/HQGHUprovided thatWKHIRUHJRLQJVKDOOQRWOLPLWWKH GLVFUHWLRQRIWKH$GPLQLVWUDWLYH$JHQWSXUVXDQWWRFODXVH M RIWKHGHILQLWLRQRI (OLJLEOH,QYHQWRU\RUWRFKDQJHHVWDEOLVKRUHOLPLQDWHDQ\5HVHUYHV L[ LQFUHDVH WKH3HUPLWWHG2YHUDGYDQFH 


 
L[ ZLWKRXWWKHFRQVHQWRIDOO7HUP/RDQ/HQGHUVDPHQGWKH GHILQLWLRQRI³7HUP/RDQ%RUURZLQJ%DVH´RUDQ\FRPSRQHQWGHILQLWLRQRIDQ\RI WKHIRUHJRLQJLIDVDUHVXOWWKHUHRIWKHDPRXQWVDYDLODEOHWREHERUURZHGE\WKH %RUURZHUZRXOGEHLQFUHDVHGH[FHSWWKDWLIVXFKDPHQGPHQWZRXOGGLUHFWO\RU LQGLUHFWO\LQFUHDVHWKH7HUP/RDQ&UHGLW&DUG5HFHLYDEOHV$GYDQFH5DWHRUWKH 7HUP/RDQ,QYHQWRU\$GYDQFH5DWHWRPRUHWKDQHDFKWKHQWKHFRQVHQW WKHUHWRRIWKH5HTXLUHG5HYROYLQJ/RDQ/HQGHUVVKDOODOVREHUHTXLUHGprovided thatWKHIRUHJRLQJVKDOOQRWOLPLWWKHGLVFUHWLRQRIWKH$GPLQLVWUDWLYH$JHQW SXUVXDQWWRFODXVH M RIWKHGHILQLWLRQRI(OLJLEOH,QYHQWRU\RUWRFKDQJH HVWDEOLVKRUHOLPLQDWHDQ\5HVHUYHV [ ZLWKRXWWKHFRQVHQWRI5HTXLUHG5HYROYLQJ/RDQ/HQGHUVDQG 5HTXLUHG7HUP/RDQ/HQGHUV DQGZLWKRXWOLPLWDWLRQXSRQFODXVH E LL DERYH   DPHQGWKHGHILQLWLRQVRI³$GMXVWHG/,%25DWH´³&RPPLWPHQW 3HUFHQWDJH´³$SSUDLVHG9DOXH´³$SSURYHG)XQG´³%DQN3URGXFWV´ ³%DQN3URGXFWV&DS´³([FHVV$YDLODELOLW\´³3ULPH5DWH´³&DVK 0DQDJHPHQW6HUYLFHV´³'HIDXOW5DWH´³(OLJLEOH$VVLJQHH´ ³(QIRUFHPHQW$FWLRQ´³,QVROYHQF\,QFUHDVH$PRXQW´³,QWHUHVW3D\PHQW 'DWH´³/,%25DWH´³0DWHULDO$GYHUVH(IIHFW´³0HDVXUHPHQW3HULRG´ ³3D\PHQW&RQGLWLRQV´³5HVWULFWHG3D\PHQWV´³5HVHUYHV´ RUDQ\GHILQHG WHUPLQFOXGHGWKHUHLQ ³5HYROYLQJ/RDQ3ULRULW\&ROODWHUDO´³7HUP/RDQ $FWLRQ1RWLFH´³7HUP/RDQ3ULRULW\&ROODWHUDO´³7HUP/RDQ5HVHUYH´ RU³8QLQWHQWLRQDO2YHUDGYDQFH´RU  DPHQG 6HFWLRQV        RU DQ\SURYLVLRQRI$UWLFOH9, [L PRGLI\WKHGHILQLWLRQRI³3HUPLWWHG2YHUDGYDQFH´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³7HUP/RDQ,QWHUHVW5DWH´VKDOORQO\UHTXLUHWKH &RQVHQWRIDOO7HUP/RDQ/HQGHUVH[FHSWWKDWLIVXFKDPHQGPHQWZRXOGLQFUHDVHWKHDPRXQW WKHUHRIE\PRUHWKDQSHUFHQWDJHSRLQWVWKHQWKHFRQVHQWWKHUHWRRIWKH5HTXLUHG5HYROYLQJ /RDQ/HQGHUVVKDOODOVREHUHTXLUHG)RUWKHDYRLGDQFHRIGRXEWWKH$GPLQLVWUDWLYH$JHQWVKDOO EHSHUPLWWHGWRPRGLI\WKHDPRXQWRIDQ\RIWKH5HVHUYHVEDVHGXSRQPDWKHPDWLFDOFDOFXODWLRQV 


 
HJWKHDSSOLFDWLRQRID³VKULQN´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³0LQRULW\/HQGHUV´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


 
LQFOXGLQJLWVULJKWVXQGHUWKLV6HFWLRQRULQFRQQHFWLRQZLWKWKH/RDQVPDGHRU/HWWHUVRI&UHGLW LVVXHGKHUHXQGHULQFOXGLQJDOOVXFKDFWXDOUHDVRQDEOHRXWRISRFNHWH[SHQVHVLQFXUUHGGXULQJ DQ\ZRUNRXWUHVWUXFWXULQJRUQHJRWLDWLRQVLQUHVSHFWRIVXFK&UHGLW([WHQVLRQVprovided thatWKH /HQGHUVZKRDUHQRWWKH$JHQWVRUWKH,VVXLQJ%DQNVKDOOEHHQWLWOHGWRUHLPEXUVHPHQWIRUQR PRUHWKDQRQHFRXQVHOUHSUHVHQWLQJDOOVXFK/HQGHUV DEVHQWDFRQIOLFWRILQWHUHVWLQZKLFKFDVH WKH/HQGHUVPD\HQJDJHDQGEHUHLPEXUVHGIRUDGGLWLRQDOFRXQVHO  E 7KH/RDQ3DUWLHVVKDOOMRLQWO\DQGVHYHUDOO\LQGHPQLI\WKH$JHQWVWKH ,VVXLQJ%DQNDQGHDFK/HQGHUDQGHDFK5HODWHG3DUW\RIDQ\RIWKHIRUHJRLQJ3HUVRQV HDFK VXFK3HUVRQEHLQJFDOOHGDQ³,QGHPQLWHH´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¶VSURUDWDVKDUH GHWHUPLQHGDVRIWKHWLPHWKDWWKHDSSOLFDEOHXQUHLPEXUVHG H[SHQVHRULQGHPQLW\SD\PHQWLVVRXJKW RIVXFKXQSDLGDPRXQWSURYLGHGWKDWWKHXQUHLPEXUVHG H[SHQVHRULQGHPQLILHGORVVFODLPGDPDJHOLDELOLW\RUUHODWHGH[SHQVHDVWKHFDVHPD\EHZDV LQFXUUHGE\RUDVVHUWHGDJDLQVWWKH$JHQWVRUWKH,VVXLQJ%DQN)RUSXUSRVHVKHUHRID5HYROYLQJ /RDQ/HQGHU¶V³SURUDWDVKDUH´VKDOOEHGHWHUPLQHGEDVHGXSRQLWVVKDUHRIWKH$GMXVWHG7RWDO &RPPLWPHQWV&RPPLWPHQW3HUFHQWDJHDWWKHWLPH 


 
G 7RWKHH[WHQWSHUPLWWHGE\$SSOLFDEOH/DZQR/RDQ3DUW\VKDOODVVHUW DQGHDFKKHUHE\ZDLYHVDQ\FODLPDJDLQVWDQ\,QGHPQLWHHRQDQ\WKHRU\RIOLDELOLW\IRUVSHFLDO LQGLUHFWFRQVHTXHQWLDORUSXQLWLYHGDPDJHV DVRSSRVHGWRGLUHFWRUDFWXDOGDPDJHV DULVLQJRXW RILQFRQQHFWLRQZLWKRUDVDUHVXOWRIWKLV$JUHHPHQWRUDQ\DJUHHPHQWRULQVWUXPHQW FRQWHPSODWHGKHUHE\WKHWUDQVDFWLRQVFRQWHPSODWHGE\WKH/RDQ'RFXPHQWVDQ\/RDQRU/HWWHU RI&UHGLWRUWKHXVHRIWKHSURFHHGVWKHUHRI7KH/RDQ3DUWLHVIXUWKHUDJUHHWKDWQR,QGHPQLWHH VKDOOKDYHDQ\OLDELOLW\WRWKH/RDQ3DUWLHVDQ\3HUVRQDVVHUWLQJFODLPVE\RURQEHKDOIRIDQ\ /RDQ3DUW\RUDQ\RWKHU3HUVRQLQFRQQHFWLRQZLWKWKLV$JUHHPHQWRUWKHRWKHU/RDQ'RFXPHQWV H[FHSW L IRUEUHDFKRIWKH,QGHPQLWHH¶VREOLJDWLRQVXQGHUWKLV$JUHHPHQWDQGWKHRWKHU/RDQ 'RFXPHQWVRU LL WKH,QGHPQLWHH¶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¶V&RPPLWPHQWRU/RDQVWKHDPRXQWRIWKH&RPPLWPHQWRU /RDQVRIWKHDVVLJQLQJ/HQGHUVXEMHFWWRHDFKVXFKDVVLJQPHQW GHWHUPLQHGDVRIWKHGDWHWKH $VVLJQPHQWDQG$FFHSWDQFHZLWKUHVSHFWWRVXFKDVVLJQPHQWLVGHOLYHUHGWRWKH$GPLQLVWUDWLYH $JHQW VKDOOQRWEHOHVVWKDQXQOHVVWKH$GPLQLVWUDWLYH$JHQWRWKHUZLVHFRQVHQWV LLL HDFKSDUWLDODVVLJQPHQWVKDOOEHPDGHDVDQDVVLJQPHQWRIDSURSRUWLRQDWHSDUWRIDOOWKH DVVLJQLQJ/HQGHU¶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


 
LQWHUHVWDVVLJQHGE\VXFK$VVLJQPHQWDQG$FFHSWDQFHEHUHOHDVHGIURPLWVREOLJDWLRQVXQGHUWKLV $JUHHPHQW DQGLQWKHFDVHRIDQ$VVLJQPHQWDQG$FFHSWDQFHFRYHULQJDOORIWKHDVVLJQLQJ /HQGHU¶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³5HJLVWHU´ 7KH HQWULHVLQWKH5HJLVWHUVKDOOEHFRQFOXVLYHDQGWKH/RDQ3DUWLHVWKH$GPLQLVWUDWLYH$JHQWWKH ,VVXLQJ%DQNDQGWKH/HQGHUVPD\WUHDWHDFK3HUVRQZKRVHQDPHLVUHFRUGHGLQWKH5HJLVWHU SXUVXDQWWRWKHWHUPVKHUHRIDVD/HQGHUKHUHXQGHUIRUDOOSXUSRVHVRIWKLV$JUHHPHQW QRWZLWKVWDQGLQJQRWLFHWRWKHFRQWUDU\7KH5HJLVWHUVKDOOEHDYDLODEOHIRULQVSHFWLRQE\WKH %RUURZHUWKH,VVXLQJ%DQNDQGDQ\/HQGHUDWDQ\UHDVRQDEOHWLPHDQGIURPWLPHWRWLPHXSRQ UHDVRQDEOHSULRUQRWLFH G 8SRQLWVUHFHLSWRIDGXO\FRPSOHWHG$VVLJQPHQWDQG$FFHSWDQFH H[HFXWHGE\DQDVVLJQLQJ/HQGHUDQGDQDVVLJQHHWKHSURFHVVLQJDQGUHFRUGDWLRQIHHUHIHUUHGWR LQSDUDJUDSK E RIWKLV6HFWLRQDQGDQ\ZULWWHQFRQVHQWWRVXFKDVVLJQPHQWUHTXLUHGE\ SDUDJUDSK E RIWKLV6HFWLRQWKH$GPLQLVWUDWLYH$JHQWVKDOODFFHSWVXFK$VVLJQPHQWDQG $FFHSWDQFHDQGUHFRUGWKHLQIRUPDWLRQFRQWDLQHGWKHUHLQLQWKH5HJLVWHU1RDVVLJQPHQWVKDOOEH HIIHFWLYHIRUSXUSRVHVRIWKLV$JUHHPHQWXQOHVVLWKDVEHHQUHFRUGHGLQWKH5HJLVWHUDVSURYLGHG LQWKLVSDUDJUDSK H $Q\/HQGHUPD\ZLWKRXWWKHFRQVHQWRIWKH/RDQ3DUWLHVWKH$JHQWVDQG WKH,VVXLQJ%DQNVHOOSDUWLFLSDWLRQVWRRQHRUPRUHEDQNVRURWKHUHQWLWLHVRWKHUWKDQD/RDQ 3DUW\ D³3DUWLFLSDQW´ LQDOORUDSRUWLRQRIVXFK/HQGHU¶VULJKWVDQGREOLJDWLRQVXQGHUWKLV $JUHHPHQW LQFOXGLQJDOORUDSRUWLRQRILWV&RPPLWPHQWDQGWKH/RDQVRZLQJWRLW SURYLGHG WKDW L VXFK/HQGHU¶VREOLJDWLRQVXQGHUWKLV$JUHHPHQWVKDOOUHPDLQXQFKDQJHG LL VXFK/HQGHU VKDOOUHPDLQVROHO\UHVSRQVLEOHWRWKHRWKHUSDUWLHVKHUHWRIRUWKHSHUIRUPDQFHRIVXFKREOLJDWLRQV DQG LLL WKH/RDQ3DUWLHVWKH$JHQWVWKH,VVXLQJ%DQNDQGWKHRWKHU/HQGHUVVKDOOFRQWLQXHWR GHDOVROHO\DQGGLUHFWO\ZLWKVXFK/HQGHULQFRQQHFWLRQZLWKVXFK/HQGHU¶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


 
VKDOOEHHQWLWOHGWRWKHEHQHILWVRI6HFWLRQDVWKRXJKLWZHUHD/HQGHUSURYLGHGVXFK 3DUWLFLSDQWDJUHHVWREHVXEMHFWWR6HFWLRQ F DVWKRXJKLWZHUHD/HQGHU(DFK/HQGHU DFWLQJIRUWKLVSXUSRVHDVDQDJHQWRIWKH/RDQ3DUWLHVVKDOOPDLQWDLQDWLWVRIILFHVDUHFRUGRI HDFKDJUHHPHQWRULQVWUXPHQWHIIHFWLQJDQ\SDUWLFLSDWLRQDQGDUHJLVWHUIRUWKHUHFRUGDWLRQRIWKH QDPHVDQGDGGUHVVHVRILWV3DUWLFLSDQWVDQGWKHLUULJKWVZLWKUHVSHFWWRSULQFLSDODPRXQWVDQG RWKHU2EOLJDWLRQVIURPWLPHWRWLPH HDFKD³3DUWLFLSDWLRQ5HJLVWHU´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¶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


 
WKH³&KDUJHV´ VKDOOH[FHHGWKHPD[LPXPODZIXOUDWH WKH³0D[LPXP5DWH´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³$FFRPPRGDWLRQ3D\PHQW´ WKHQWKH/RDQ3DUW\PDNLQJVXFK$FFRPPRGDWLRQ 3D\PHQWVKDOOEHHQWLWOHGWRFRQWULEXWLRQDQGLQGHPQLILFDWLRQIURPDQGEHUHLPEXUVHGE\HDFK RIWKHRWKHU/RDQ3DUWLHVLQDQDPRXQWHTXDOWRDIUDFWLRQRIVXFK$FFRPPRGDWLRQ3D\PHQWWKH QXPHUDWRURIZKLFKIUDFWLRQLVVXFKRWKHU/RDQ3DUW\¶V$OORFDEOH$PRXQWDQGWKHGHQRPLQDWRU RIZKLFKLVWKHVXPRIWKH$OORFDEOH$PRXQWVRIDOORIWKH/RDQ3DUWLHV$VRIDQ\GDWHRI GHWHUPLQDWLRQWKH³$OORFDEOH$PRXQW´RIHDFK/RDQ3DUW\VKDOOEHHTXDOWRWKHPD[LPXP DPRXQWRIOLDELOLW\IRU$FFRPPRGDWLRQ3D\PHQWVZKLFKFRXOGEHDVVHUWHGDJDLQVWVXFK/RDQ 3DUW\KHUHXQGHUZLWKRXW D UHQGHULQJVXFK/RDQ3DUW\³LQVROYHQW´ZLWKLQWKHPHDQLQJRI 6HFWLRQ  RIWKH%DQNUXSWF\&RGH6HFWLRQRIWKH8QLIRUP)UDXGXOHQW7UDQVIHU$FW ³8)7$´ RU6HFWLRQRIWKH8QLIRUP)UDXGXOHQW&RQYH\DQFH$FW ³8)&$´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¶VKROGLQJRUSDUHQW FRPSDQ\LQLWVVROHGLVFUHWLRQGHWHUPLQHVWKDWDQ\VXFKSDUW\VKRXOGKDYHDFFHVVWRVXFK &RQILGHQWLDO,QIRUPDWLRQ DQ\&RQILGHQWLDO,QIRUPDWLRQZLWKUHVSHFWWRWKH%RUURZHURUDQ\ RWKHU/RDQ3DUW\ZKLFKLVIXUQLVKHGSXUVXDQWWRWKLV$JUHHPHQWSURYLGHGWKDWDQ\/HQGHUPD\ 


 
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¶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³WRPEVWRQH´SUHVVUHOHDVHRUFRPSDUDEOHDGYHUWLVLQJRQLWVZHEVLWHRULQRWKHUPDUNHWLQJ PDWHULDOVRI$GPLQLVWUDWLYH$JHQWDQ\/HQGHURUWKHLUUHVSHFWLYHUHSUHVHQWDWLYHVUHODWLQJWRWKH ILQDQFLQJWUDQVDFWLRQVFRQWHPSODWHGE\WKLV$JUHHPHQWXVLQJDQ\/RDQ3DUW\¶VQDPHSURGXFW SKRWRJUDSKVORJRWUDGHPDUNRURWKHULQVLJQLDSURYLGHGKRZHYHUWKDWWKHSDUWLHVKHUHWR DFNQRZOHGJHDQGDJUHHWKDWDQ\VXFKDGYHUWLVLQJRUPDUNHWLQJPDWHULDOVVKDOOLQFOXGHRQO\ SXEOLFO\DYDLODEOHLQIRUPDWLRQDQGDQ\/RDQ3DUW\¶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³$FW´ KHUHE\QRWLILHVWKH/RDQ3DUWLHVWKDWSXUVXDQWWR WKHUHTXLUHPHQWVRIWKH$FWLWLVUHTXLUHGWRREWDLQYHULI\DQGUHFRUGLQIRUPDWLRQWKDWLGHQWLILHV WKHHDFK/RDQ3DUWLHV3DUW\ZKLFKLQIRUPDWLRQLQFOXGHVWKHQDPHDQGDGGUHVVRIHDFK/RDQ3DUW\ DQGRWKHULQIRUPDWLRQWKDWZLOODOORZVXFK/HQGHUWRLGHQWLI\VXFKHDFK/RDQ3DUW\LQDFFRUGDQFH 


 
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³NQRZ\RXU FXVWRPHU´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†HWVHTDVDPHQGHG  WKH³7UDGLQJ:LWKWKH (QHP\$FW´ RUDQ\RIWKHIRUHLJQDVVHWVFRQWUROUHJXODWLRQVRIWKH8QLWHG6WDWHV7UHDVXU\ 'HSDUWPHQW &)56XEWLWOH%&KDSWHU9DVDPHQGHG  WKH³)RUHLJQ$VVHWV&RQWURO 5HJXODWLRQV´ RUDQ\HQDEOLQJOHJLVODWLRQRUH[HFXWLYHRUGHUUHODWLQJWKHUHWR ZKLFKIRUWKH DYRLGDQFHRIGRXEWVKDOOLQFOXGHEXWVKDOOQRWEHOLPLWHGWR D ([HFXWLYH2UGHURI 6HSWHPEHU%ORFNLQJ3URSHUW\DQG3URKLELWLQJ7UDQVDFWLRQV:LWK3HUVRQV:KR &RPPLW7KUHDWHQWR&RPPLWRU6XSSRUW7HUURULVP )HG5HJ   WKH ³([HFXWLYH2UGHU´ DQG E WKH$FW)XUWKHUPRUHQRQHRIWKH/RDQ3DUWLHVRUWKHLU$IILOLDWHV D LVRUZLOOEHFRPHD³EORFNHGSHUVRQ´DVGHVFULEHGLQWKH([HFXWLYH2UGHUWKH7UDGLQJ:LWKWKH (QHP\$FWRUWKH)RUHLJQ$VVHWV&RQWURO5HJXODWLRQVRU E HQJDJHVRUZLOOHQJDJHLQDQ\ GHDOLQJVRUWUDQVDFWLRQVRUEHRWKHUZLVHDVVRFLDWHGZLWKDQ\VXFK³EORFNHGSHUVRQ´RULQDQ\ PDQQHUYLRODWLYHRIDQ\VXFKRUGHU1R/RDQ3DUW\QRUDQ\RILWV6XEVLGLDULHVQRUWRWKH NQRZOHGJHRIVXFK/RDQ3DUW\DQ\GLUHFWRURIILFHUHPSOR\HHDJHQWRU$IILOLDWHRIVXFK/RDQ 3DUW\RUVXFK6XEVLGLDU\ D LVD6DQFWLRQHG3HUVRQRUD6DQFWLRQHG(QWLW\ E KDVDQ\DVVHWV ORFDWHGLQ6DQFWLRQHG(QWLWLHVRU F GHULYHVUHYHQXHVIURPLQYHVWPHQWVLQ6DQFWLRQHG3HUVRQVRU 6DQFWLRQHG(QWLWLHV(DFKRIWKH/RDQ3DUWLHVDQGLWV6XEVLGLDULHVKDVLPSOHPHQWHGDQG PDLQWDLQVLQHIIHFWSROLFLHVDQGSURFHGXUHVLQWKH/RDQ3DUWLHV¶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


 
DPHQGPHQWZDLYHURURWKHUPRGLILFDWLRQKHUHRIRURIDQ\RWKHU/RDQ'RFXPHQW DUHDQ DUP¶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³NHHSZHOOVXSSRUWRURWKHUDJUHHPHQW´IRUWKH EHQHILWRIHDFKRWKHU/RDQ3DUW\IRUDOOSXUSRVHVRI6HFWLRQD  $ Y ,, RIWKH&RPPRGLW\ ([FKDQJH$FW 


 
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


 
:(//6)$5*2%$1.1$7,21$/ $662&,$7,211$ DV$GPLQLVWUDWLYH$JHQWDV&ROODWHUDO $JHQWDV6ZLQJOLQH/HQGHUDV,VVXLQJ %DQNDQGDV/HQGHU %\ BBBBBBBBBBBBBBBBBBBBBBBBB 1DPH BBBBBBBBBBBBBBBBBBBBBBBBB 7LWOH BBBBBBBBBBBBBBBBBBBBBBBBB 66LJQDWXUH3DJHWR6HFRQG$PHQGHGDQG5HVWDWHG&UHGLW$JUHHPHQW


 
%$1.2)$0(5,&$1$ DV6\QGLFDWLRQ$JHQWDQG/HQGHU %\ BBBBBBBBBBBBBBBBBBBBBBBBB 1DPH BBBBBBBBBBBBBBBBBBBBBBBBB 7LWOH BBBBBBBBBBBBBBBBBBBBBBBBB 66LJQDWXUH3DJHWR6HFRQG$PHQGHGDQG5HVWDWHG&UHGLW$JUHHPHQW


 
-3025*$1&+$6(%$1.1$ DV&R'RFXPHQWDWLRQ$JHQWDQG/HQGHU %\ BBBBBBBBBBBBBBBBBBBBBBBBB 1DPH $QGUHZ5D\ 7LWOH 9LFH3UHVLGHQW 66LJQDWXUH3DJHWR6HFRQG$PHQGHGDQG5HVWDWHG&UHGLW$JUHHPHQW


 
5(*,216%$1.DV&R'RFXPHQWDWLRQ $JHQWDQG/HQGHU %\ BBBBBBBBBBBBBBBBBBBBBBBBB 1DPH &RQQLH5XDQ 7LWOH $WWRUQH\LQ)DFW 66LJQDWXUH3DJHWR6HFRQG$PHQGHGDQG5HVWDWHG&UHGLW$JUHHPHQW


 
$11(;& 8SGDWHG6FKHGXOHVWR&UHGLW$JUHHPHQW >VHHDWWDFKHG@


 
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¶V2UGLQDU\&RPPLWPHQWDQGDVWRWKH6HDVRQDO,QFUHDVH &RPPLWPHQW/HQGHUWKHVXPRIVXFK5HYROYLQJ/RDQ/HQGHU¶V2UGLQDU\&RPPLWPHQWSOXVWKH 6HDVRQDO&RPPLWPHQW,QFUHDVH8WLOL]HG$PRXQW \ $GMXVWHG5HYROYLQJ /RDQ&RPPLWPHQWV


 
5,'(5 5HVWDWHG'HILQLWLRQRI³&ROODWHUDO´LQ6HFXULW\$JUHHPHQW 'HILQLWLRQRI³&ROODWHUDO´ VHWIRUWKLQ6HFXULW\$JUHHPHQW ³&ROODWHUDO´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