/$%285&2'( ³=iNRQtNSUiFH´
1R&ROO
DVDPHQGHGE\$FWV1R&ROO1R&ROO1R&ROO1R&ROO1R &ROO1R&ROO1R&ROO1R&ROO1R&ROO1R &ROO1R&ROO1R&ROO1R&ROO1R&ROO1R &ROO1R&ROO1R&ROO1R&ROO1R&ROO1R &ROO1R&ROO1R&ROO1R&ROO1R&ROO 1R &ROO1R&ROO1R&ROO1R&ROOZLWKWKHIXOOZRUGLQJRIWKH /DERXU&RGHSURPXOJDWHGLQ$FW1R&ROO 1R&ROO
1R&ROO
1R &ROO 1R&ROO
1R&ROO 1R&ROO 1R&ROO DQG1R&ROO
7KH(QJOLVKWUDQVODWLRQRIWKHVHVWDWXWRU\SURYLVLRQVLVSURWHFWHGXQGHUWKH&RS\ULJKW$FW:LWKRXWSULRU SHUPLVVLRQRI7UDGH/LQNVVURWKLV(QJOLVKWUDQVODWLRQPD\QRWEHGLVWULEXWHGIRUWKHSXUSRVHRIPDNLQJ DSURILW $QJOLFNêS HNODGWRKRWRSUiYQtKRS HGSLVXMHFKUiQ QGOHDXWRUVNpKR]iNRQD%H]S HGFKR]tKRVRXKODVX 7UDGH/LQNVVURMHãt HQtXYHGHQpKRS HNODGX]D~þHOHP]LVNX]DNi]iQR BBBBBBBBBBBBBBBBBB
7KRVH DPHQGPHQWV LQWURGXFHG E\ $FW 1R &ROO ZKLFK ZLOO FRPH LQWR IRUFH RQO\ RQ WKH &]HFK5HSXEOLF VDFFHVVLRQWRWKH(8DPHQGPHQWVXQGHU$FWV1R&ROO1R&ROO DQG1R&ROOHIIHFWLYHDVRI-DQXDU\DVZHOODVDPHQGPHQWVXQGHU$FWV1R &ROODQG1R&ROOHIIHFWLYHDVRI-DQXDU\DUHSULQWHGLQEROGLWDOLFV
$PHQGPHQWVXQGHU$FWV1R&ROOHIIHFWLYHDVRI0D\ 1R&ROOHIIHFWLYH DVRI$SULO DQG1R&ROOHIIHFWLYHDVRI-XO\ DUHSULQWHGLQEROGW\SH
BBBBBBBBBBBBBBBBBB
3$5721(
*(1(5$/3529,6,216 &+$37(5,
6&23(2)7+(/$%285&2'( 6HFWLRQ
/DERXUUHODWLRQVLQGXVWULDOUHODWLRQV DULVHEHWZHHQHPSOR\HHVDQGWKHLU HPSOR\HUV
8QOHVVWKH/DERXU&RGHRURWKHUVWDWXWRU\SURYLVLRQVGHWHUPLQHRWKHUZLVHODERXUUHODWLRQVVKDOODULVH DWWKHHDUOLHVWXSRQWKHFRQFOXVLRQRIDQHPSOR\PHQWFRQWUDFW³SUDFRYQtVPORXYD´ DQDJUHHPHQWIRUWKH SHUIRUPDQFH RI D ZRUN DVVLJQPHQW ³GRKRGD R SURYHGHQt SUiFH´ RU DQ DJUHHPHQW RQ ZRUNLQJ DFWLYLW\
³GRKRGDRSUDFRYQtþLQQRVWL´ RULIWKHHPSOR\PHQWUHODWLRQVKLSSUDFRYQtSRP U´ RIDQHPSOR\HHLV EDVHGXSRQHOHFWLRQRUDSSRLQWPHQWXSRQVXFKHOHFWLRQRUDSSRLQWPHQW
(PSOR\HUVVKDOOHQVXUHHTXDOWUHDWPHQWRIDOOHPSOR\HHVDVUHJDUGVZRUNLQJFRQGLWLRQVLQFOXGLQJSD\ DQG RWKHU HPROXPHQWV LQ FDVK RU LQ NLQG IRU WKHLU ZRUN FRQGLWLRQV IRU WKHLU YRFDWLRQDO WUDLQLQJ DQG RSSRUWXQLWLHVIRUFDUHHUGHYHORSPHQWSURPRWLRQ
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
6HFWLRQ
7KH/DERXU&RGHVKDOODSSO\WRUHODWLRQVDULVLQJIURPWKHSHUIRUPDQFHRIDSXEOLFRIILFHLIWKLV&RGH RURWKHUVWDWXWRU\SURYLVLRQVH[SUHVVO\VRGHWHUPLQH
,IDSXEOLFRIILFHLVSHUIRUPHGRQWKHEDVLVRIDQHPSOR\PHQWUHODWLRQVKLSVXFKUHODWLRQVKLSVKDOOEH JRYHUQHGE\WKH/DERXU&RGH
6HFWLRQ
/DERXUUHODWLRQVEHWZHHQDFRRSHUDWLYHDQGLWVPHPEHUVDUHJRYHUQHGE\WKH/DERXU&RGHXQOHVV DQRWKHU$FWSURYLGHVRWKHUZLVH1RWH
6HFWLRQ
7KH/DERXU&RGHVKDOORQO\DSSO\WRWKHODERXUUHODWLRQVRIMXGLFLDOWUDLQHHVDUWLFOLQJMXGJHV VWDWHSURVHFXWRUVDUWLFOHGFOHUNVDUWLFOLQJDWWRUQH\VDWODZ PHPEHUVRIWKHDUPHGIRUFHVRQDFWLYH GXW\DQGWRWKHHPSOR\HHVRIWKHVWDWHXQGHUWKH&LYLO6HUYLFH$FW1RWHD ZKHQWKLV&RGHRURWKHU VWDWXWRU\SURYLVLRQVVRH[SUHVVO\VWLSXODWH
BBBBBBBBBBBBBBBBBB
$PHQGPHQWXQGHU$FW1R&ROOHIIHFWLYHDVRI-DQXDU\LVSULQWHGLQEROGLWDOLFV
7KHZRUGLQJRIVHFWLRQDSDUWIURPWKHWH[WLQEROGLWDOLFV KDVWDNHQIRUFHRQ$SULO
BBBBBBBBBBBBBBBBBB
6HFWLRQ
7KHODERXUUHODWLRQVRIRIILFLDOVRIILFHUV RIWKHORFDOVHOIJRYHUQLQJDUHDV WUDLQHHVSUHSDULQJ WKHPVHOYHVIRUWKHSHUIRUPDQFHRIFLYLOVHUYLFH1RWHE
XQLYHUVLW\WHDFKHUVWUDQVSRUWHPSOR\HHV FRPPDQGHUVRIYHVVHOVDQGWKHFUHZVRILQODQGZDWHUDQGVHDJRLQJYHVVHOVDQGHPSOR\HHVRIWKH 3UREDWLRQDQG0HGLDWLRQ6HUYLFHDQGWKH2PEXGVPDQ V2IILFHVKDOOEHJRYHUQHGE\WKH/DERXU&RGH XQOHVVRWKHUVWDWXWRU\SURYLVLRQVVWLSXODWHRWKHUZLVH
BBBBBBBBBBBBBB
(IIHFWLYHDVRI-DQXDU\
(IIHFWLYHDVRI-DQXDU\ BBBBBBBBBBBBBB
6HFWLRQ
7KH /DERXU &RGH VKDOO JRYHUQ ODERXU UHODWLRQV EHWZHHQ HPSOR\HHV DQG IRUHLJQ QRQUHVLGHQW HPSOR\HUVLQWKH&]HFK5HSXEOLFDVZHOODVWKRVHEHWZHHQIRUHLJQHUVHPSOR\HGLQWKH&]HFK5HSXEOLF DQGHPSOR\HUVLQWKH&]HFK5HSXEOLFXQOHVVSULYDWHLQWHUQDWLRQDOODZGHWHUPLQHVRWKHUZLVH
7KH/DERXU&RGHJRYHUQVWKHODERXUUHODWLRQVRIWKHHPSOR\HHVRILQWHUQDWLRQDORUJDQL]DWLRQVKDYLQJ WKHLUVHDWUHJLVWHUHGRIILFH LQWKH&]HFK5HSXEOLFDQGHVWDEOLVKHGE\DQLQWHUQDWLRQDOWUHDW\XQOHVVWKDW WUHDW\RUDQRWKHULQWHUQDWLRQDOWUHDW\SURYLGHVIRURWKHUZLVH
7KH /DERXU &RGH JRYHUQV WKH ODERXU UHODWLRQV RI HPSOR\HHV LQ MRLQWYHQWXUHVLHHQWHUSULVHVZLWK IRUHLJQFDSLWDOLQWHUHVW1RWH DQGRIHPSOR\HUVZLWKDQLQWHUQDWLRQDOHOHPHQW1RWH KDYLQJWKHLUVHDW LQWKH&]HFK5HSXEOLFXQOHVVWKHVHHPSOR\HHVZRUNDQGUHVLGHLQWKDWIRUHLJQFRXQWU\LQZKLFKFDVHWKHLU ODERXU UHODWLRQV DUH JRYHUQHG E\ WKH ODZ ZKLFK LV DSSOLFDEOH XQGHU WKH VWDWXWRU\ SURYLVLRQV RQ SULYDWH LQWHUQDWLRQDOODZ
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
6HFWLRQ
7KH /DERXU &RGH VKDOO JRYHUQ ODERXU UHODWLRQV EHWZHHQ HPSOR\HHV DQG IRUHLJQ QRQUHVLGHQW HPSOR\HUVLQWKH&]HFK5HSXEOLFDVZHOODVWKRVHEHWZHHQIRUHLJQHUVHPSOR\HGLQWKH&]HFK5HSXEOLF DQGHPSOR\HUVLQWKH&]HFK5HSXEOLFXQOHVVSULYDWHLQWHUQDWLRQDOODZGHWHUPLQHVRWKHUZLVH
,I DQ HPSOR\HH LV SRVWHG WR FDUU\ RXW ZRUN ZLWKLQ WKH WHUULWRU\ RI DQRWKHU 0HPEHU 6WDWH RI WKH (XURSHDQ&RPPXQLWLHVKHVKDOOEHVXEMHFWWRWKHVWDWXWRU\SURYLVLRQVRIWKH0HPEHU6WDWHZKHUHKH FDUULHVRXWVXFKZRUNDVUHJDUGV
D WKHOHQJWKRIZRUNLQJWLPHDQGUHVWSHULRGV
E WKHOHQJWKRISDLGOHDYHSHUDQQXP
F WKHPLQLPXPZDJHPLQLPXPZDJHUDWHVDQGSUHPLXPERQXV SD\PHQWVIRURYHUWLPHZRUN
G VDIHW\DQGSURWHFWLRQRIKHDOWKDWZRUN
H ZRUNLQJFRQGLWLRQVIRUZRPHQDQGDGROHVFHQWVSHRSOHDQGHPSOR\HHVWDNLQJFDUHRIDWOHDVWRQH FKLOGXQGHUWKUHH\HDUVRIDJH
I HTXDOWUHDWPHQWRIPHQDQGZRPHQDQGWKHSURKLELWLRQRIGLVFULPLQDWLRQ
7KH ILUVW VHQWHQFH VKDOO QRW DSSO\ LI HQWLWOHPHQWV XQGHU &]HFK VWDWXWRU\ SURYLVLRQV DUH PRUH
DGYDQWDJHRXVIRUVXFKHPSOR\HH7KHOHYHORIDGYDQWDJHVVKDOOEHFRQVLGHUHGVHSDUDWHO\IRUHDFKZRUN UHODWHGODERXUODZ HQWLWOHPHQW
6XEVHFWLRQ F VKDOOQRWDSSO\LIWKHWLPHRISRVWLQJRIDQHPSOR\HHGRHVQRWH[FHHGRQHPRQWK ZLWKLQWKHODVWPRQWKVIURPWKHVWDUWRIWKHHPSOR\HH VSRVWLQJ
6XEVHFWLRQ E DQGF VKDOOQRWDSSO\LIWKHSHULRGRIZRUNFDUULHGRXWE\WKHSRVWHGHPSOR\HH GRHVQRWH[FHHGGD\VLQWKHODVWPRQWKVIURPWKHVWDUWRIKLVSRVWLQJ
6XEVHFWLRQV WR VKDOOQRWDSSO\WRHPSOR\HHVRIVWDWHDGPLQLVWUDWLYHDXWKRULWLHV BBBBBBBBBBB
6HFWLRQ LQWKHZRUGLQJZKLFKZLOOWDNHHIIHFWRQWKH&]HFK5HSXEOLF VDFFHVVLRQWRWKH(8
BBBBBBBBBB
&+$37(5,,
3$57,(672/$%2855(/$7,216 6HFWLRQ
/DERXU UHODWLRQV XQGHU WKLV &RGH PD\ RQO\ EH FUHDWHG ZLWK WKH FRQVHQWRIDQLQGLYLGXDODQDWXUDO SHUVRQ DQGDQHPSOR\HU
([HUFLVHRIWKHULJKWVDQGREOLJDWLRQVHQVXLQJIURPODERXUUHODWLRQVPD\QRWEHDEXVHGE\DQ\ERG\WR WKHGHWULPHQWRIDQRWKHUSDUW\WRODERXUUHODWLRQVRUWRWKHGHPHDQLQJRIKXPDQGLJQLW\6XFKGHPHDQLQJ VKDOODOVRLQYROYHXQGHVLUDEOHEHKDYLRXURIDVH[XDOQDWXUHVH[XDOKDUDVVPHQW DWWKHZRUNSODFHLIVXFK FRQGXFW LV XQZHOFRPH XQVXLWDEOH RU LQVXOWLQJ RU LI LW FDQ MXVWLILDEO\ EH SHUFHLYHG E\ WKH SDUW\ SDUWLFLSDQW FRQFHUQHGDVDFRQGLWLRQIRUGHFLVLRQVDIIHFWLQJWKHH[HUFLVHRIULJKWVDQGREOLJDWLRQVHQVXLQJ IURPODERXUUHODWLRQV
$QHPSOR\HUPD\QRWVDQFWLRQKLVHPSOR\HHRUSXWKLPDWDGLVDGYDQWDJHRQO\EHFDXVHWKHHPSOR\HH FODLPVULJKWVDQGHQWLWOHPHQWVHQVXLQJIURPODERXUUHODWLRQVLQDODZIXOPDQQHU
,IULJKWVDQGREOLJDWLRQVUHODWLQJWRIDLUWUHDWPHQWRIPHQDQGZRPHQLQODERXUUHODWLRQVDUHLQIULQJHG EUHDFKHG WKHHPSOR\HHFRQFHUQHGLVHQWLWOHGWRGHPDQGGHVLVWDQFHIURPVXFKLQIULQJHPHQWUHPRYDORI WKHFRQVHTXHQFHVRIWKLVLQIULQJHPHQWDQGDSSURSULDWHVDWLVIDFWLRQ
,I VXFK HPSOR\HH V GLJQLW\ RU HVWHHP UHSXWDWLRQ DW WKH ZRUNSODFH LV VXEVWDQWLDOO\ KDUPHG DQG UHFWLILFDWLRQXQGHUVXEVHFWLRQ LVQRWVXIILFLHQWWKHHPSOR\HHPD\FODLPPRQHWDU\FRPSHQVDWLRQIRU WKLVQRQPDWHULDOGHWULPHQW
7KH DPRXQW RI FRPSHQVDWLRQ XQGHU VXEVHFWLRQ VKDOO EH GHWHUPLQHG E\ WKH FRPSHWHQW FRXUW WDNLQJLQWRDFFRXQWWKHVHYHULW\RIWKHGHWULPHQWDQGWKHFLUFXPVWDQFHVXQGHUZKLFKULJKWVDQGREOLJDWLRQV ZHUHLQIULQJHGEUHDFKHG
(PSOR\HUV 6HFWLRQ
)RU WKH SXUSRVHV RI WKLV &RGH WKH WHUP ³HPSOR\HU´ PHDQV D OHJDO HQWLW\ OHJDO SHUVRQ RU DQ LQGLYLGXDODQDWXUDOSHUVRQ HPSOR\LQJLQGLYLGXDOVLQWKHFRQWH[WRIODERXUUHODWLRQVDQGLIWKHODZVR SURYLGHVDOVRLQWKHFRQWH[WRIRWKHUDQDORJRXVODERXUUHODWLRQV
$QHPSOR\HUVKDOOHQWHULQWRODERXUUHODWLRQVLQKLVRZQQDPHDQGEHDUWKHUHVSRQVLELOLW\OLDELOLW\ HQVXLQJ IURP WKRVH UHODWLRQV 7KH VDPH VKDOO DSSO\ WR VXFK HPSOR\HU V RUJDQL]DWLRQDO FRPSRQHQWV HVWDEOLVKPHQWV LIVSHFLILFSURYLVLRQVVRSURYLGHRULIWKHVWDWXWHVE\ODZV RIFLYLFDVVRFLDWLRQVSXUVXDQW WR DQRWKHU $FW 1RWH VR VWLSXODWH KRZHYHU LI DQ HPSOR\HU LV D SDUW\ WR ODERXU UHODWLRQV WKLV HPSOR\HU VRUJDQL]DWLRQDOFRPSRQHQWPD\QRWEHFRQFXUUHQWO\DSDUW\WRWKRVHODERXUUHODWLRQVDQGYLFH YHUVD
(PSOR\HUVDUHREOLJHGWRHQVXUHWKDWWKH\FUHDWHDQGGHYHORSODERXUUHODWLRQVLQFRQIRUPLW\ZLWKWKLV &RGHRWKHUVWDWXWRU\SURYLVLRQVDQGWKHUXOHVRIGHFHQF\DQGFLYLFFRH[LVWHQFH
6HFWLRQD
7KH FDSDFLW\ RI DQ LQGLYLGXDO WR KDYH ULJKWV DQG REOLJDWLRQV GXWLHV LQ ODERXU UHODWLRQV DV DQ HPSOR\HU DULVHV DW ELUWK 7KH FDSDFLW\ RI DQ LQGLYLGXDO E\ KLV RZQ DFWV LQ ODZ WR DFTXLUH ULJKWV DQG WR DVVXPHREOLJDWLRQVLQODERXUUHODWLRQVDVDQHPSOR\HUFRPPHQFHVZKHQKHUHDFKHVWKHDJHRI\HDUV
6HFWLRQE
,IWKH6WDWHLVDSDUW\WRODERXUUHODWLRQVLWVKDOOEHUHJDUGHGDVDOHJDOHQWLW\DQGDQHPSOR\HUWKH VDPHVKDOODSSO\WRRWKHUDQDORJRXVODERXUUHODWLRQV
7KHFRPSHWHQWRUJDQL]DWLRQDOFRPSRQHQWHVWDEOLVKPHQW RIWKH6WDWH1RWH VKDOODFWRQEHKDOIRI WKH6WDWHLQODERXUUHODWLRQV
6HFWLRQ
$FWVLQODZFRQFHUQLQJODERXUUHODWLRQVDUHSHUIRUPHGLQWKHFDVHRIDQHPSOR\HUZKLFKLVDOHJDO HQWLW\ SULPDULO\ E\ LWV VWDWXWRU\ RUJDQ DQG LQ WKH FDVH RI DQ HPSOR\HU ZKR LV DQ LQGLYLGXDO E\ WKH HPSOR\HUVXFKDFWVPD\DOVREHXQGHUWDNHQE\SHUVRQVDXWKRUL]HGHPSRZHUHG WKHUHWRE\WKHHPSOR\HU 2WKHUHPSOR\HHVRIWKHHPSOR\HULQSDUWLFXODUWKHKHDGVRIKLVRUJDQL]DWLRQDOGLYLVLRQVDUHDXWKRUL]HGDV RUJDQVRIWKHHPSOR\HUWRSHUIRUPRQEHKDOIRIWKHHPSOR\HUWKRVHDFWVLQODZHQVXLQJIURPWKHLURIILFHV GXWLHV DVVHWGRZQLQWKHRUJDQL]DWLRQDOUHJXODWLRQVUXOHV
7KHHPSOR\HUPD\ZLWKLQWKHERXQGVRIKLVFRPSHWHQFHFRQIHURQRWKHURIKLVHPSOR\HHVWKHULJKWWR SHUIRUP LQ WKH HPSOR\HU V QDPH DFWV LQ ODZ FRQFHUQLQJ ODERXU UHODWLRQV 7KH VFRSH RI WKH DXWKRULW\ FRQIHUUHGRQDQHQWUXVWHGHPSRZHUHG HPSOR\HHPXVWEHVWDWHGLQZULWLQJ
$QHPSOR\HU VPDQDJHULDOVWDIIHPSOR\HHV VKDOOPHDQRUJDQVRIWKHHPSOR\HU>VXEVHFWLRQ @DV ZHOODVWKHHPSOR\HU VRWKHUHPSOR\HHVZKRDUHHPSRZHUHGZLWKPDQDJHPHQWDWLQGLYLGXDOOHYHOVRIVXFK HPSOR\HU V RSHUDWLRQV PDQDJLQJ HPSOR\HHV PDQDJHULDO VWDII DUH DXWKRUL]HG WR IRUPXODWH DQG DVVLJQ ZRUN WDVNV WR VXERUGLQDWH HPSOR\HHV WR RUJDQL]H PDQDJH DQG VXSHUYLVH WKHLU ZRUN DQG WR JLYH WKHP ELQGLQJLQVWUXFWLRQVIRUWKDWSXUSRVH
6HFWLRQD
,QWKHFDVHVUHIHUUHGWRLQVHFWLRQEDFWVLQODZLQODERXUUHODWLRQVVKDOOEHXQGHUWDNHQE\WKHKHDGRI WKH 6WDWH V RUJDQL]DWLRQDO FRPSRQHQW HVWDEOLVKPHQW 1RWH WR ZKLFK WKHVH DFWV LQ ODZ OHJDO WUDQVDFWLRQV UHODWH2WKHUHPSOR\HHVLQSDUWLFXODUWKRVHKHDGLQJVHFWLRQVRIVXFKHVWDEOLVKPHQWVKDOOEH DXWKRUL]HGWRXQGHUWDNHDFWVLQODZUHODWLQJWRWKHLUSRVWVDVVWLSXODWHGLQWKHRUJDQL]DWLRQDOUHJXODWLRQV UXOHV 7KHKHDGRIDQHVWDEOLVKPHQWRUJDQL]DWLRQDOFRPSRQHQW RIWKH6WDWHPD\DXWKRUL]HRWKHUHPSOR\HHV
ZRUNLQJLQVXFKHVWDEOLVKPHQWWRXQGHUWDNHFHUWDLQDFWVLQODZFRQFHUQLQJODERXUUHODWLRQV
7KRVH HPSOR\HHV KHDGLQJ HVWDEOLVKPHQWV RUJDQL]DWLRQDO FRPSRQHQWV RI WKH 6WDWH DQG VHFWLRQV RI VXFK HVWDEOLVKPHQWV >VXEVHFWLRQ @ VKDOO EH UHJDUGHG DV WKH HPSOR\HU V PDQDJHULDO VWDII XQGHU VHFWLRQ
6HFWLRQ
$FWV LQ ODZ XQGHUWDNHQ E\ WKH HPSOR\HU V RUJDQV RU DXWKRUL]HG HPSOR\HHV >VHFWLRQV DQG D @DUHELQGLQJRQWKHHPSOR\HUZKRDOVRDFTXLUHVULJKWVIURPVXFKDFWV
,IDQRUJDQRUDXWKRUL]HGHPSOR\HHH[FHHGVLWVKLVDXWKRULW\E\DQDFWLQODZVXFKDFWLQODZLQODERXU UHODWLRQV VKDOO QRW ELQG WKH HPSOR\HU LI WKH HPSOR\HH FRQFHUQHG PXVW KDYH NQRZQ WKDW WKH HPSOR\HU V RUJDQ RU DXWKRUL]HG HPSOR\HH KDG H[FHHGHG LWVKLV DXWKRULW\ 7KH VDPH VKDOO DSSO\ LI DQ DFW LQ ODZ LV XQGHUWDNHQ E\ DQ HPSOR\HU V HPSOR\HH ZKR LV QHLWKHU DXWKRUL]HG WR XQGHUWDNH VXFK DFW DV SDUW RI KLV UHVSRQVLELOLWLHVQRUVSHFLILFDOO\DXWKRUL]HGWKHUHWR
6HFWLRQ
(PSOR\HHV
$QLQGLYLGXDOVKDOODFTXLUHWKHFDSDFLW\WRKDYHULJKWVDQGREOLJDWLRQVGXWLHV LQODERXUUHODWLRQVDQG WKHFDSDFLW\E\KLVRZQDFWVLQODZWRDFTXLUHWKHVHULJKWVDQGWDNHRQWKHVHREOLJDWLRQVGXWLHV RQWKH GD\KHUHDFKHVWKHDJHRIXQOHVVIXUWKHUSURYLGHGIRURWKHUZLVH+RZHYHUDQHPSOR\HUPD\QRWDJUHH ZLWK DQ LQGLYLGXDO WR WDNH XS KLV HPSOR\PHQW RQ D GD\ ZKLFK SUHFHGHV WKH GD\ ZKHQ KH FRPSOHWHV FRPSXOVRU\VFKRRODWWHQGDQFH
$QLQGLYLGXDOZKRFRPSOHWHVKLVFRPSXOVRU\VFKRRODWWHQGDQFHDWDQDX[LOLDU\VFKRROEHIRUHUHDFKLQJ WKHDJHRIVKDOODFTXLUHWKHFDSDFLW\WRKDYHULJKWVDQGREOLJDWLRQVLQODERXUUHODWLRQVDQGWKHFDSDFLW\ E\KLVRZQDFWVLQODZWRDFTXLUHWKHVHULJKWVDQGWDNHRQWKHVHREOLJDWLRQVGXWLHV RQWKHGD\WKDWKLV FRPSXOVRU\VFKRRODWWHQGDQFHILQLVKHVEXWQRWHDUOLHUWKDQWKHGD\RQZKLFKKHUHDFKHVWKHDJHRI
$QHPSOR\HHPD\FRQFOXGHDQDJUHHPHQWPDNLQJKLPOLDEOHIRUSURSHUW\HQWUXVWHGWRKLPPDWHULDO OLDELOLW\VHFWLRQ DWWKHHDUOLHVWRQWKHGD\KHUHDFKHVWKHDJHRI
7KH*RYHUQPHQWVKDOOOD\GRZQLQDGHFUHH
D WKHUDQJHRIDQGFRQGLWLRQVDWWDFKHGWRSHUIRUPDQFHRIRWKHUDSSURSULDWHZRUNZKLFKLQDGGLWLRQWR VRFLDOO\XVHIXOZRUN1RWH LQGLYLGXDOVZKRKDYHUHDFKHGWKHDJHRIPD\SHUIRUPHYHQSULRUWR FRPSOHWLQJFRPSXOVRU\VFKRRODWWHQGDQFH
E WKHUDQJHRIDQGFRQGLWLRQVDWWDFKHGWRSHUIRUPDQFHRIDSSURSULDWHZRUNZKLFKPD\EHFDUULHGRXW E\ LQGLYLGXDOVZKRKDYHILQLVKHGWKHLUFRPSXOVRU\VFKRRODWWHQGDQFHLQDQDX[LOLDU\VFKRROLIWKH\ KDYHUHDFKHGDWOHDVWWKHDJHRI
6HFWLRQ
$QHPSOR\HHPD\ORVHWKHFDSDFLW\WRSHUIRUPDFWVLQODZXQGHUWKHSUHFHGLQJSURYLVLRQVRQO\E\WKH GHFLVLRQUXOLQJMXGJPHQW RIDFRXUW$FWVLQODZIRUZKLFKVXFKHPSOR\HHODFNVOHJDOFDSDFLW\VKDOOEH SHUIRUPHGIRUKLPE\KLVUHSUHVHQWDWLYHKRZHYHUVXFKUHSUHVHQWDWLYHPD\QRWFRQFOXGHDQDJUHHPHQWRQ WKHHPSOR\HH VEHKDOIPDNLQJKLPOLDEOHIRUSURSHUW\HQWUXVWHGWRKLPDQDJUHHPHQWRQPDWHULDOOLDELOLW\
7KHFRPSHWHQW FRXUWVKDOOUHVWULFWDQHPSOR\HH VFDSDFLW\WRSHUIRUPDFWVLQODZDQGGHWHUPLQHLQLWV GHFLVLRQUXOLQJMXGJPHQW WKHH[WHQWRIWKLVUHVWULFWLRQLIGXHWRDPHQWDOGLVRUGHUZKLFKLVQRWPHUHO\
WHPSRUDU\ RU GXH WR H[FHVVLYH FRQVXPSWLRQ RI DOFRKROLF EHYHUDJHV RU RWKHU DGGLFWLYH VXEVWDQFHV RU QDUFRWLFVXEVWDQFHVWKHHPSOR\HHLVRQO\DEOHWRSHUIRUPVRPHDFWVLQODZ
,I GXH WR D PHQWDO GLVRUGHU ZKLFK LV QRW PHUHO\ WHPSRUDU\ DQ HPSOR\HH LV HQWLUHO\ LQFDSDEOH RI XQGHUWDNLQJDFWVLQODZWKHFRXUWVKDOOGHSULYHKLPRIKLVFDSDFLW\WRSHUIRUPVXFKDFWV
7KHFRXUWVKDOOPRGLI\RUFDQFHODGHSULYDWLRQRUUHVWULFWLRQRIWKHFDSDFLW\WRXQGHUWDNHDFWVLQODZLI WKHUHDVRQVIRULWVLPSRVLWLRQFKDQJHRULIWKH\FHDVHWRH[LVW
6HFWLRQ 5HSHDOHG
5HSUHVHQWDWLRQ 6HFWLRQ
$UHSUHVHQWDWLYHUHODWLRQVKLSDULVHVRQWKHEDVLVRIDQDJUHHPHQWJUDQWLQJDSRZHURIDWWRUQH\RURQ WKHEDVLVRIDMXGLFLDOGHFLVLRQUXOLQJMXGJPHQW 7KHUHSUHVHQWDWLYHDFWVLQWKHQDPHRIWKHUHSUHVHQWHG SHUVRQ DQG WKH UHSUHVHQWHG SHUVRQ GLUHFWO\ DFTXLUHV ULJKWV DQG DVVXPHV REOLJDWLRQV DV D UHVXOW RI VXFK UHSUHVHQWDWLRQ
$SHUVRQPD\QRWUHSUHVHQWDQRWKHULIKHKLPVHOIODFNVWKHFDSDFLW\WRSHUIRUPDFWVLQODZRULIKLV LQWHUHVWVFRQIOLFWZLWKWKRVHRIWKHUHSUHVHQWHGSHUVRQ
$UHSUHVHQWDWLYHPXVWDFWLQSHUVRQKHPD\DSSRLQWDQRWKHUUHSUHVHQWDWLYHDVKLVGHSXW\ RQO\LIWKH VWDWXWRU\ SURYLVLRQV VR SURYLGH RU LI WKH SDUWLHV KDYH VR DJUHHG 7KH UHSUHVHQWHG SHUVRQ DOVR GLUHFWO\ DFTXLUHVULJKWVDQGDVVXPHVREOLJDWLRQVDVDUHVXOWRIDFWVLQODZXQGHUWDNHQE\VXFKRWKHUUHSUHVHQWDWLYH
,IDUHSUHVHQWDWLYHH[FHHGVKLVSRZHURIDWWRUQH\DXWKRUL]DWLRQ WKHUHSUHVHQWHGSHUVRQLVERXQGE\ WKHDFWLQTXHVWLRQRQO\LIKHDSSURYHVLWRULIKHDFWVRQWKHEDVLVWKHUHRI
6HFWLRQ
$QHPSOR\HHDQGDQHPSOR\HUPD\EHUHSUHVHQWHGE\DQRWKHULQGLYLGXDORUOHJDOHQWLW\
7KHFUHDWLRQRIDUHSUHVHQWDWLYHUHODWLRQVKLSUHTXLUHVDZULWWHQSRZHURIDWWRUQH\LQZKLFKWKHH[WHQW RIWKHUHSUHVHQWDWLYH VDXWKRUL]DWLRQLVVWDWHGRWKHUZLVHLWLVQRWYDOLG
,IDSRZHURIDWWRUQH\JUDQWHGWRVHYHUDOUHSUHVHQWDWLYHVGRHVQRWSURYLGHRWKHUZLVHWKH\PXVWDOODFW MRLQWO\
6HFWLRQ
$SRZHURIDWWRUQH\WHUPLQDWHVLIWKHUHSUHVHQWHGSHUVRQZLWKGUDZVLWRUWKHUHSUHVHQWDWLYHFDQFHOV UHYRNHV LW 7KH ZLWKGUDZDO RU FDQFHOODWLRQ PXVW EH LQ ZULWLQJ RWKHUZLVH LW LV QRW YDOLG $ SRZHU RI DWWRUQH\DOVRWHUPLQDWHVXSRQWKHGHDWKRIDQ\SDUW\WRLWRUE\WKHGLVVROXWLRQRIWKHHPSOR\HU
)RUDQ\RQHRWKHUWKDQWKHUHSUHVHQWDWLYHDQGWKHUHSUHVHQWHGSHUVRQWKHWHUPLQDWLRQRIDSRZHURI DWWRUQH\EHFRPHVHIIHFWLYHDJDLQVWKLPRQO\ZKHQKHOHDUQVDERXWLW
,I WKH UHSUHVHQWHG SHUVRQ GLHV RU LI WKH UHSUHVHQWDWLYH FDQFHOV UHYRNHV WKH SRZHU RI DWWRUQH\ WKH UHSUHVHQWDWLYHLVREOLJHGWRXQGHUWDNHDFWVZKLFKGRQRWDOORZRIGHOD\VRWKDWWKHUHSUHVHQWHGSHUVRQGRHV QRWVXIIHUDQ\GHWULPHQWWRKLVULJKWV7KHDFWVVRSHUIRUPHGKDYHWKHVDPHOHJDOHIIHFWVFRQVHTXHQFHV DV
LI WKH UHSUHVHQWDWLRQ KDG FRQWLQXHG SURYLGHG WKDW VXFK DFWV DUH QRW FRQWUDU\ WR WKRVH XQGHUWDNHQ E\ WKH UHSUHVHQWHGSHUVRQRUKLVKHLUV
6HFWLRQ
$FRXUWDSSRLQWHGJXDUGLDQUHSUHVHQWVDQHPSOR\HHZKRVHFDSDFLW\WRSHUIRUPDFWVLQODZKDVEHHQ UHVWULFWHGRUZKRKDVEHHQGHSULYHGRIWKHFDSDFLW\WRXQGHUWDNHDFWVLQODZE\DMXGLFLDOGHFLVLRQUXOLQJ
$FRXUWPD\DOVRDSSRLQWDJXDUGLDQIRUDSHUVRQZKRVHSODFHRIUHVLGHQFHLVQRWNQRZQLIWKLVLV QHFHVVDU\WRSURWHFWKLVLQWHUHVWVRUWKHLQWHUHVWVRIVRFLHW\$FRXUWPD\DOVRDSSRLQWDJXDUGLDQXQGHUWKH VDPHFRQGLWLRQVLIWKLVLVQHFHVVDU\IRURWKHUVHULRXVUHDVRQV
,IWKHLQWHUHVWVRIWKHJXDUGLDQFRQIOLFWZLWKWKRVHRIWKHSHUVRQKHUHSUHVHQWVRULIWKHLQWHUHVWVRI SHUVRQVUHSUHVHQWHGE\WKHVDPHJXDUGLDQFRQIOLFWDFRXUWVKDOODSSRLQWDVSHFLDOJXDUGLDQ
&+$37(5,,, 6HFWLRQ
(PSOR\HHV KDYH WKH ULJKW WR LQIRUPDWLRQ DQG FRQVXOWDWLRQ LH WR EH LQIRUPHG DQG FRQVXOWHG 7KH HPSOR\HU VKDOO LQIRUP KLV HPSOR\HHV DQG GLVFXVV PDWWHUV ZLWK WKHP GLUHFWO\ XQOHVV DW VXFKHPSOR\HU V HQWHUSULVHWKHUHLVDWUDGHXQLRQRUJDQL]DWLRQRUJDQERG\ RUDZRUNVFRXQFLOLHHPSOR\HHV FRXQFLO RU WKHUHDUHUHSUHVHQWDWLYHVFRQFHUQHGZLWKVDIHW\DQGWKHSURWHFWLRQRIKHDOWKDWZRUNFROOHFWLYHO\UHIHUUHG WR DV ³HPSOR\HHV UHSUHVHQWDWLYHV´ &RQVXOWDWLRQV VKDOO PHDQ GLVFXVVLRQV QHJRWLDWLRQV EHWZHHQ WKH HPSOR\HUDQGKLVHPSOR\HHVRUEHWZHHQWKHHPSOR\HUDQGHPSOR\HHV UHSUHVHQWDWLYHVZKLFKDUHDLPHGDW UHDFKLQJDQDJUHHPHQW 7KHHPSOR\HUVKDOOLQIRUPKLVHPSOR\HHVRI
D WKH HPSOR\HU V HFRQRPLF DQG ILQDQFLDO VLWXDWLRQ LPSDFWV RI WKH HPSOR\HU V DFWLYLW\ RQ WKH HQYLURQPHQWDQGHFRORJLFDOPHDVXUHVSUHFDXWLRQV WDNHQE\WKHHPSOR\HU
E DWUDQVIHUXQGHUVHFWLRQ
F WKH HPSOR\HU V OHJDO VWDWXV DQG FKDQJHVLQVXFKVWDWXVWKHLQWHUQDORUJDQL]DWLRQDOVWUXFWXUHDQGWKH SHUVRQDXWKRUL]HGHPSRZHUHG WRDFWRQEHKDOIDQGLQWKHQDPHRIWKHHPSOR\HULQODERXUUHODWLRQV DQGFKDQJHVLQWKHHPSOR\HU VEXVLQHVVDFWLYLWLHV
G OLNHO\GHYHORSPHQWVLQHPSOR\PHQWDWWKLVHPSOR\HU VHQWHUSULVH
H HQYLVDJHG VWUXFWXUDO FKDQJHV UDWLRQDOL]DWLRQ RU RUJDQL]DWLRQDO PHDVXUHV DQG PHDVXUHV UHODWLQJ WR ODUJHVFDOHGLVPLVVDOFROOHFWLYHUHGXQGDQFLHV RIHPSOR\HHVSXUVXDQWWRVHFWLRQ WR
I WKH QXPEHU DQG VWUXFWXUH RI HPSOR\HHV IXQGDPHQWDO LVVXHV FRQFHUQLQJ ZRUNLQJ FRQGLWLRQV DQG FKDQJHVLQWKHP
J VDIHW\DQGWKHSURWHFWLRQRIKHDOWKDWZRUNZLWKLQWKHVFRSHODLGGRZQLQ&KDSWHU9RI3DUW7ZR
7KHHPSOR\HUVKDOOFRQVXOWKLVHPSOR\HHVRQ D DWUDQVIHUXQGHUVHFWLRQ
E PHDVXUHVUHODWLQJWRODUJHVFDOHGLVPLVVDORIHPSOR\HHVSXUVXDQWWRVHFWLRQ WR
F LVVXHVRIVDIHW\DQGWKHSURWHFWLRQRIKHDOWKDWZRUNZLWKLQWKHVFRSHODLGGRZQLQ&KDSWHU9RI3DUW 7ZR
6HFWLRQD
(PSOR\HHV RI WKH HPSOR\HUV UHIHUUHG WR LQ VHFWLRQ G VKDOO KDYH WKH ULJKW WR LQIRUPDWLRQ DQG FRQVXOWDWLRQUHJDUGLQJWKHLQWHUHVWVRIHPSOR\HHVDVODLGGRZQLQDQDJUHHPHQWRQWKHHVWDEOLVKPHQWRI D (XURSHDQ ZRUNV FRXQFLO RU RQ WKH EDVLV RI VRPH RWKHU SURFHGXUH DJUHHG IRU WKH SXUSRVHV RI LQIRUPLQJDQGFRQVXOWLQJHPSOR\HHVDWWUDQVQDWLRQDOOHYHORULQWKHVFRSHODLGGRZQLQVHFWLRQM
BBBBBBBBBBBBB
6HFWLRQDZLOOEHFRPHHIIHFWLYHRQWKH&]HFK5HSXEOLF VDFFHVVLRQWRWKH(8 BBBBBBBBBBBBB
6HFWLRQE
7UDGH XQLRQV VKDOO KDYH WKH ULJKW WR WDNH SDUW LQ ODERXU UHODWLRQV LQFOXGLQJ FROOHFWLYH EDUJDLQLQJ XQGHUWKHFRQGLWLRQVODLGGRZQE\ODZ
7KHHPSOR\HULQSDUWLFXODUVKDOOLQIRUPWKHFRPSHWHQWWUDGHXQLRQRUJDQL]DWLRQERG\ RI
D GHYHORSPHQWVUHJDUGLQJZDJHVVDODULHVWKHDYHUDJHZDJHDQGLWVLQGLYLGXDOFRQVWLWXHQWVLQFOXGLQJ LQIRUPDWLRQ DERXW WKH DYHUDJH ZDJH RI WKH YDULRXV RFFXSDWLRQDO FDWHJRULHV XQOHVV LW LV DJUHHG RWKHUZLVH
E WKHPDWWHUVODLGGRZQLQVHFWLRQ
7KHHPSOR\HUVKDOOLQSDUWLFXODUFRQVXOWWKHFRPSHWHQWWUDGHXQLRQRUJDQL]DWLRQERG\ RQ
D WKHHPSOR\HU VHFRQRPLFVLWXDWLRQ
E ZRUNQRUPVVWDQGDUGV SXUVXDQWWRDQRWKHU$FW1RWHD
F FKDQJHVLQZRUNRUJDQL]DWLRQ
G WKHV\VWHPRIDSSUDLVDODQGUHPXQHUDWLRQRIHPSOR\HHV H WKHV\VWHPRIHPSOR\HHV WUDLQLQJDQGHGXFDWLRQ
I PHDVXUHV WR FUHDWH FRQGLWLRQV IRU WKH HPSOR\PHQW RI LQGLYLGXDOV HVSHFLDOO\ DGROHVFHQWV SHUVRQV WDNLQJFDUHRIDFKLOGXQGHU\HDUVRIDJHDQGGLVDEOHGSHUVRQVLQFOXGLQJVXEVWDQWLDOLVVXHVUHODWLQJ WR WKH FDUH IRU HPSOR\HHV PHDVXUHV DLPHG DW LPSURYLQJ K\JLHQH DW ZRUN DQG WKH ZRUNLQJ HQYLURQPHQWDQGWKHRUJDQL]DWLRQRIVRFLDOFXOWXUDODQGSK\VLFDOWUDLQLQJVHUYLFHV
J RWKHUPHDVXUHVZKLFKUHODWHWRDODUJHUQXPEHURIHPSOR\HHV
K PHDVXUHVSXUVXDQWWRVHFWLRQ
:KHUHWKHHPSOR\HUDQGWKHFRPSHWHQWWUDGHXQLRQRUJDQL]DWLRQERG\ DJUHHRQWKHPDWWHUVSXUVXDQW WRVXEVHFWLRQ F G H I RUJ WKHVHPDWWHUVPD\EHUHJXODWHGE\DQDJUHHPHQW
7KHFRPSHWHQWVWDWHDXWKRULWLHVVKDOOFRQVXOWWUDGHXQLRQERGLHVRQLVVXHVFRQFHUQLQJWKHZRUNLQJDQG OLYLQJFRQGLWLRQVRIHPSOR\HHVDQGSURYLGHWKHWUDGHXQLRQERGLHVZLWKWKHQHFHVVDU\LQIRUPDWLRQ
6HFWLRQ
7KHHPSOR\HUDQGWKHFRPSHWHQWWUDGHXQLRQRUJDQL]DWLRQERG\ VKDOOFRGHFLGHDERXWWKHDOORFDWLRQ RI ILQDQFLDO UHVRXUFHV WR WKH IXQG IRU FXOWXUDO DQG VRFLDO QHHGV DQG ZLWKGUDZDOV IURP WKH IXQG DFWLQJ WKHUHE\LQDFFRUGDQFHZLWKRWKHUVWDWXWRU\SURYLVLRQV1RWH
6HFWLRQ
7KHSURFHGXUHWREHIROORZHGZKHQHQWHULQJLQWRDFROOHFWLYHEDUJDLQLQJDJUHHPHQWDWWKHHQWHUSULVH RUDKLJKHUOHYHO LVODLGGRZQLQDQRWKHU$FW1RWH
:DJHVRURWKHUHQWLWOHPHQWVHQVXLQJIURPODERXUUHODWLRQVPD\EHUHJXODWHGLQFROOHFWLYHEDUJDLQLQJ DJUHHPHQWVZLWKLQWKHIUDPHZRUNRIWKHSURYLVLRQVRQODERXUUHODWLRQV:KHUHWKLV&RGHGHWHUPLQHVWKH FDVHVLQZKLFKLWLVSRVVLEOHWRLQFUHDVHRUZLGHQHPSOR\HHV ULJKWVHQVXLQJIURPODERXUUHODWLRQV WKURXJK FROOHFWLYH EDUJDLQLQJ DJUHHPHQWV LW VKDOO DSSO\ WR HPSOR\HUV FDUU\LQJ RQ EXVLQHVV LHHQWUHSUHQHXULDO DFWLYLWLHV1RWH XQOHVVLWLVH[SUHVVO\VWLSXODWHGRWKHUZLVH
(QWLWOHPHQWVULJKWV ZKLFKLQGLYLGXDOHPSOR\HHVDFTXLUHXQGHUFROOHFWLYHEDUJDLQLQJDJUHHPHQWVDUH DVVHUWHGDQGVDWLVILHGOLNHRWKHUHPSOR\HHV HQWLWOHPHQWVHQVXLQJIURPWKHLUHPSOR\PHQWUHODWLRQVKLS
6HFWLRQ
:LWKWKHH[FHSWLRQRIHQWLWOHPHQWVWRZDJHVDQGUHLPEXUVHPHQWRIWUDYHOOLQJH[SHQVHVHQWLWOHPHQWV HQVXLQJIURPODERXUUHODWLRQVZKLFKFDQEHUHJXODWHGXQGHUODERXUODZSURYLVLRQVLQFROOHFWLYHEDUJDLQLQJ DJUHHPHQWVPD\EHVHWRXWLQDQHPSOR\HU VLQWHUQDOUHJXODWLRQVUXOHV LIQRWUDGHXQLRQRUJDQL]DWLRQKDV EHHQIRUPHGE\VXFKHPSOR\HU VHPSOR\HHV
,I FHUWDLQ HQWLWOHPHQWV HQVXLQJ IURP ODERXU UHODWLRQV DUH UHJXODWHG ERWK E\ D FROOHFWLYH EDUJDLQLQJ DJUHHPHQWDQGLQWHUQDOUHJXODWLRQVZKLFKZHUHLVVXHGSULRUWRWKHIRUPDWLRQRIDWUDGHXQLRQRUJDQL]DWLRQ WKHDUUDQJHPHQWVFRQWDLQHGLQWKHFROOHFWLYHEDUJDLQLQJDJUHHPHQWVKDOODSSO\
,QWHUQDOUHJXODWLRQVDUHYRLGLIWKH\ZHUHQRWLVVXHGLQZULWLQJRULIWKH\DUHFRQWUDU\WRWKHVWDWXWRU\ SURYLVLRQVRULIWKH\DUHLVVXHGE\DQHPSOR\HUZKRVHHPSOR\HHVKDYHIRUPHGDWUDGHXQLRQRUJDQL]DWLRQ
6HFWLRQ
7UDGHXQLRQRUJDQL]DWLRQVERGLHV VKDOOHQVXUHFRPSOLDQFHZLWKWKHSURYLVLRQVRIWKLV&RGHDQGRWKHU SURYLVLRQV RQ ODERXU UHODWLRQV LQFOXGLQJ WKRVH RQ ZDJHV VDIHW\ DQG KHDOWK SURWHFWLRQ DW ZRUN DQG RQ HPSOR\PHQWKHUHDIWHU³ODERXUODZSURYLVLRQV´
7KHFRPSHWHQWWUDGHXQLRQERGLHVRUJDQV KDYHWKHULJKWWRVXSHUYLVHDQHPSOR\HU VFRPSOLDQFHZLWK ODERXUODZ SURYLVLRQV LQWHUQDO UHJXODWLRQV UXOHV DQG REOLJDWLRQV HQVXLQJ IURP FROOHFWLYH EDUJDLQLQJ DJUHHPHQWV7KH\DUHWKHUHE\DXWKRUL]HGLQSDUWLFXODU D WRHQWHULQGLYLGXDOHPSOR\HUV ZRUNSODFHV
E WRUHTXHVWQHFHVVDU\LQIRUPDWLRQDQGGRFXPHQWVIURPPDQDJHULDOVWDII F WRVXEPLWSURSRVDOVIRUWKHLPSURYHPHQWRIZRUNLQJFRQGLWLRQV
G WR UHTXHVW DQ HPSOR\HU RU DQ RUJDQ VXSHULRU WR VXFK HPSOR\HU WR RUGHU WKH UHFWLILFDWLRQ RI LUUHJXODULWLHVZKLFKKDYHEHHQIRXQG
H WR SURSRVH WR HPSOR\HUV RUJDQV VXSHULRU WR WKHP RU RWKHU RUJDQV ERGLHV HQWUXVWHG ZLWK WKH VXSHUYLVLRQ RI FRPSOLDQFH ZLWK WKH ODZ LQ ODERXU UHODWLRQV WKDW WKH\ WDNH VXLWDEOH PHDVXUHV LQ DFFRUGDQFHZLWKWKHVWDWXWRU\SURYLVLRQVDJDLQVWPDQDJHULDOHPSOR\HHVZKRDUHLQEUHDFKRIODERXU ODZSURYLVLRQVRUWKHGXWLHVHQVXLQJWRWKHPIURPFROOHFWLYHEDUJDLQLQJDJUHHPHQWV
I WRGHPDQGUHSRUWVIURPHPSOR\HUVRURUJDQVERGLHV VXSHULRUWRWKHPRQPHDVXUHVZKLFKZHUHWDNHQ WRHOLPLQDWHLUUHJXODULWLHVGLVFRYHUHGGXULQJLQVSHFWLRQDFWLYLW\DQGWRLPSOHPHQWSURSRVDOVVXEPLWWHG E\WKHWUDGHXQLRQRUJDQVZKLFKFDUULHGRXWWKHLQVSHFWLRQDFWLYLW\
:KHUH WKH LQVSHFWLRQ DFWLYLW\ UHODWHV WR SHUVRQDO LQIRUPDWLRQ RQ DQ HPSOR\HH DQG WKLV LQIRUPDWLRQ LV VXEMHFWWRWKHSURYLVLRQVRQWKHSURWHFWLRQRISHUVRQDOULJKWV1RWH VXFKLQIRUPDWLRQGDWD PD\EH SURYLGHGRQO\ZLWKWKHSULRUFRQVHQWRIWKHHPSOR\HH
,Q WKH FDVH RI QDWLRQDO GHIHQFH IDFLOLWLHV RQO\ WKRVH WUDGH XQLRQ RUJDQV ZKLFK DUH SHUPLWWHGXQGHU RWKHUVSHFLDOVWDWXWRU\SURYLVLRQVWRHQWHUVXFKIDFLOLWLHVPD\FDUU\RXWDQLQVSHFWLRQ
7KH SURYLVLRQV RI VXEVHFWLRQ VKDOO QRW DIIHFW WKH ULJKW RI LQVSHFWLRQ VXSHUYLVLRQ SHUWDLQLQJWR RWKHURUJDQVDXWKRULWLHV XQGHURWKHUVWDWXWRU\SURYLVLRQV
6HFWLRQ
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
&RQVXOWDWLRQVVKDOOEHKHOGZLWKWKHFRPSHWHQWFHQWUDOWUDGHXQLRQERGLHVRUJDQV DQGWKHFRPSHWHQW HPSOR\HUV DVVRFLDWLRQVRQOHJLVODWLYHELOOVDQGSURSRVDOVIRUUHJXODWLRQVUHODWLQJWRWKHLPSRUWDQWLQWHUHVWV RIHPSOR\HHVHVSHFLDOO\HFRQRPLFSURGXFWLRQZRUNLQJZDJHFXOWXUDODQGVRFLDOFRQGLWLRQV
6HFWLRQD 5HSHDOHG
6HFWLRQ
,Q RUGHU WR HQVXUH WKH ULJKW WR LQIRUPDWLRQ DQG FRQVXOWDWLRQ HPSOR\HHV ZKR DUH HPSOR\HG E\ DQ HPSOR\HU ZKHUH WKHUH LV QR WUDGH XQLRQ RUJDQL]DWLRQ PD\ HOHFW D ZRUNV FRXQFLO LH DQ HPSOR\HHV FRXQFLO RUUHSUHVHQWDWLYHVFRQFHUQHGZLWKVDIHW\DQGWKHSURWHFWLRQRIKHDOWKDWZRUN
7KH HPSOR\HU VKDOO LQIRUP WKH ZRUNV FRXQFLO DQG FRQVXOW LW RQ PDWWHUV LQ WKHVFRSHGHWHUPLQHGLQ VHFWLRQ D WRI DQG D DQGE
7KHHPSOR\HUVKDOOLQIRUPUHSUHVHQWDWLYHVFRQFHUQHGZLWKVDIHW\DQGWKHSURWHFWLRQRIKHDOWKDWZRUN DQGFRQVXOWWKHPRQPDWWHUVLQWKHVFRSHGHWHUPLQHGLQVHFWLRQ J DQG F
6HFWLRQ
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
RIKHDOWKDWZRUNVKDOOEHWKUHH\HDUV
)RU WKH SXUSRVHV RI HOHFWLQJ D ZRUNV FRXQFLO RU UHSUHVHQWDWLYHV FRQFHUQHG ZLWK VDIHW\ DQG WKH SURWHFWLRQRIKHDOWKDWZRUNWKHQXPEHURIHPSOR\HHVZKRDUHLQDQHPSOR\PHQWUHODWLRQVKLSZLWKWKH HPSOR\HUDWWKHGD\RIPDNLQJDZULWWHQSURSRVDOIRUWKHKROGLQJRIHOHFWLRQVVKDOOEHGHFLVLYH
$ ZRUNV FRXQFLO VKDOO HOHFW D FKDLUPDQ DW LWV ILUVW PHHWLQJ DQG LQIRUP ERWK WKH HPSOR\HU DQG HPSOR\HHVRIKLVQDPH
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
7KHWHUPRIRIILFHRIDZRUNVFRXQFLODQGRIDUHSUHVHQWDWLYHUHSUHVHQWDWLYHV FRQFHUQHGZLWKVDIHW\ DQGWKHSURWHFWLRQRIKHDOWKDWZRUNVKDOOH[SLUHRQWKHGD\
D ZKHQDWUDGHXQLRQRUJDQL]DWLRQSURYHVWRWKHHPSOR\HUWKDWLWKDVEHHQHVWDEOLVKHGDQGLVIXQFWLRQLQJ
E RQH[SLU\RIWKHWHUPRIRIILFH
F RQWUDQVIHURIWKHHPSOR\HU VXQGHUWDNLQJLHHQWHUSULVH LIWKHUHLVDWUDGHXQLRQRUJDQL]DWLRQDWWKH WUDQVIHUHH VXQGHUWDNLQJHQWHUSULVH RUDWWKHWUDQVIHURU VXQGHUWDNLQJHQWHUSULVH
,Q DGGLWLRQ WR WKH FDVHV SXUVXDQW WR VXEVHFWLRQ D ZRUNV FRXQFLO VKDOO DOVR EH GLVVROYHG LI WKH QXPEHURILWVPHPEHUVKDVGURSSHGEHORZWKUHH
,QWKHFDVHVUHIHUUHGWRLQVXEVHFWLRQV DQG WKHZRUNVFRXQFLORUWKHUHSUHVHQWDWLYHFRQFHUQHG ZLWKVDIHW\DQGWKHSURWHFWLRQRIKHDOWKDWZRUNVKDOOSDVVDOOGRFXPHQWVUHODWLQJWRWKHSHUIRUPDQFHRI WKHLUGXWLHVWRWKHHPSOR\HUZKRVKDOONHHSWKHVHGRFXPHQWVIRUDSHULRGRIILYH\HDUVDIWHUGLVVROXWLRQRI WKHZRUNVFRXQFLORUWKHRIILFHRIWKHUHSUHVHQWDWLYHFRQFHUQHGZLWKVDIHW\DQGWKHSURWHFWLRQRIKHDOWKDW ZRUN
0HPEHUVKLS LQ D ZRUNV FRXQFLO RU WKH RIILFH RI UHSUHVHQWDWLYH FRQFHUQHG ZLWK VDIHW\ DQG WKH SURWHFWLRQRIKHDOWKDWZRUNVKDOOWHUPLQDWHRQWKHGD\ D RIJLYLQJXSVXFKRIILFHIXQFWLRQ
E RQ ZKLFK WKH HPSOR\PHQW UHODWLRQVKLS RI VXFK PHPEHU RU UHSUHVHQWDWLYH ZLWK WKH HPSOR\HU WHUPLQDWHV
6HFWLRQD
(OHFWLRQVKDOOEHDQQRXQFHGE\WKHHPSOR\HUFRQFHUQHGRQWKHEDVLVRIDZULWWHQSURSRVDOVLJQHGE\ QR OHVV WKDQ RQHWKLUG RI WKH HPSOR\HHV ZKR DUH LQ DQ HPSOR\PHQW UHODWLRQVKLS ZLWK VXFK HPSOR\HU ZLWKLQWKUHHPRQWKVRIGHOLYHU\RIVXFKSURSRVDO
7KH HOHFWLRQ VKDOO EH RUJDQL]HG E\ DQ HOHFWLRQ FRPPLVVLRQ FRPSRVHGRIQROHVVWKDQWKUHHDQGQR PRUHWKDQQLQHRIWKHHPSOR\HU VHPSOR\HHV7KHQXPEHURIPHPEHUVRIVXFKHOHFWLRQFRPPLVVLRQVKDOO EH GHWHUPLQHG E\ WKH HPSOR\HU WDNLQJ LQWR DFFRXQW WKH QXPEHU RI KLV HPSOR\HHV DQG WKH LQWHUQDO RUJDQL]DWLRQDO VWUXFWXUH 7KH PHPEHUV RI WKH HOHFWLRQ FRPPLVVLRQ VKDOO EH HPSOR\HHV LQ WKH RUGHU LQ
ZKLFKWKH\VLJQHGWKHZULWWHQSURSRVDOIRUWKHHOHFWLRQRIDZRUNVFRXQFLO7KHHPSOR\HUVKDOOLQIRUPWKH HPSOR\HHV RI WKH FRPSRVLWLRQ RI WKH HOHFWLRQ FRPPLVVLRQ 7KH HPSOR\HU LV REOLJHG WR SURYLGH WKH QHFHVVDU\LQIRUPDWLRQDQGGRFXPHQWVIRUWKHSXUSRVHVRIKROGLQJWKHHOHFWLRQLQSDUWLFXODUDOLVWRIDOO HPSOR\HHVLQDQHPSOR\PHQWUHODWLRQVKLSZLWKWKLVHPSOR\HU 7KHHOHFWLRQFRPPLVVLRQVKDOO
D LQDJUHHPHQWZLWKWKHHPSOR\HUGHWHUPLQHWKHHOHFWLRQGDWHDWOHDVWRQHPRQWKEHIRUHWKHHOHFWLRQLV KHOGDQGWKHILQDOGDWHE\ZKLFKQRPLQDWLRQVFDQEHPDGH
E GUDZXSDQGSXEOLVKWKHUXOHVIRUVXFKHOHFWLRQ
F FRPSLOHDOLVWRIFDQGLGDWHVQRPLQHHV EDVHGRQWKHQRPLQDWLRQVPDGHE\HPSOR\HHVZKRDUHLQDQ HPSOR\PHQWUHODWLRQVKLSZLWKWKHHPSOR\HUWKHOLVWRIFDQGLGDWHVVKDOOEHSXEOLVKHGPDGHNQRZQ ZHOOLQDGYDQFHRIWKHKROGLQJRIWKHHOHFWLRQ
G RUJDQL]HDQGRYHUVHHWKHHOHFWLRQ
H GHFLGHRQFRPSODLQWVUHJDUGLQJHUURUVDQGLUUHJXODULWLHVLQWKHOLVWRIFDQGLGDWHV
I FRXQWWKHYRWHVDQGGUDZXSDZULWWHQUHSRUWRQWKHUHVXOWRIWKHHOHFWLRQLQWZRFRSLHVRQHFRS\VKDOO EHKDQGHGRYHUWRWKHHOHFWHGZRUNVFRXQFLORUWKHHOHFWHGUHSUHVHQWDWLYHVFRQFHUQHGZLWKVDIHW\DQG WKHSURWHFWLRQRIKHDOWKDWZRUNRQHFRS\VKDOOEHJLYHQWRWKHHPSOR\HU
J LQIRUPWKHHPSOR\HUDQGDOOWKHHPSOR\HHVRIWKHUHVXOWRIWKHHOHFWLRQ
7KHHOHFWLRQVKDOOEHE\GLUHFWHTXDODQGVHFUHWEDOORW9RWLQJPXVWEHRQO\LQSHUVRQ,IWKHHOHFWLRQ LVWREHYDOLGDWOHDVWRQHKDOIRIWKHHPSOR\HU VHPSOR\HHVHOLJLEOHWRWDNHSDUWLQWKHHOHFWLRQPXVWFDVW WKHLUYRWHVGLVUHJDUGLQJWKRVHHPSOR\HHVZKRZHUHSUHYHQWHGIURPWDNLQJSDUWLQWKHHOHFWLRQGXHWRVRPH LPSHGLPHQWDWZRUNRUEHFDXVHWKH\ZHUHZRUNLQJDZD\(DFKYRWHUPD\FDVWVXFKDQXPEHURIYRWHVIRU FDQGLGDWHVZKLFKFRUUHVSRQGVWRWKHQXPEHURIVHDWVRQWKHZRUNVFRXQFLOHDFKYRWHUPD\FDVWRQO\RQH YRWHIRURQHFDQGLGDWH,IDYRWHUGRHVQRWFRPSO\ZLWKWKHVHUXOHVKLVYRWHVVKDOOEHYRLG
7KHHOHFWLRQVKDOOWDNHSODFHDWWKHZRUNSODFHGXULQJZRUNLQJWLPH3DUWLFLSDWLRQLQWKHHOHFWLRQVKDOO EHUHJDUGHGDVDQDFWRIFRPPRQLQWHUHVWDQGWKHHPSOR\HUVKDOOJUDQWKLVHPSOR\HHVWKHQHFHVVDU\WLPH RIIIRUVXFKYRWLQJZLWKFRPSHQVDWRU\SD\LQWKHDPRXQWRIDYHUDJHHDUQLQJV7KHFRVWRIWKHHOHFWLRQ VKDOOEHERUQHE\WKHHPSOR\HU
$OOHPSOR\HHVZKRDUHLQDQHPSOR\PHQWUHODWLRQVKLSZLWKWKHHPSOR\HUFRQFHUQHGPD\YRWHDQGEH HOHFWHG
$Q\HPSOR\HHZKRLVLQDQHPSOR\PHQWUHODWLRQVKLSZLWKWKHHPSOR\HUPD\QRPLQDWHFDQGLGDWHV1R ODWHUWKDQWKHGDWHGHWHUPLQHGE\WKHHOHFWLRQFRPPLVVLRQVXFKQRPLQDWLRQVPXVWEHSXWWRWKHHOHFWLRQ FRPPLVVLRQLQZULWLQJDQGDFFRPSDQLHGE\WKHQRPLQHH VZULWWHQFRQVHQWWRQRPLQDWLRQ
7KHHOHFWLRQVKDOOQRWWDNHSODFHLIE\WKHILQDOGDWHGHWHUPLQHGIRUWKHDFFHSWDQFHRIQRPLQDWLRQVWKH HOHFWLRQFRPPLVVLRQKDVQRWUHFHLYHG
D DWOHDVWWKUHHQRPLQDWLRQVIRUWKHZRUNVFRXQFLO
E DW OHDVW RQH QRPLQDWLRQ IRU D UHSUHVHQWDWLYH FRQFHUQHG ZLWK VDIHW\ DQG WKH SURWHFWLRQ RI KHDOWK DW ZRUN
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
LQ WKH HOHFWLRQ ,I WKHUH DUH WZR RU PRUH FDQGLGDWHV ZKR REWDLQHG DQ HTXDO QXPEHU RI YDOLG YRWHV WKH FRPPLVVLRQVKDOOGHWHUPLQHWKHVXFFHVVIXOVXEVWLWXWHE\GUDZLQJORWV
$ZULWWHQUHSRUWRQWKHUHVXOWVRIWKHHOHFWLRQVKDOOEHNHSWE\WKHHPSOR\HUIRUDSHULRGRIILYH\HDUV DIWHUWKHGD\RIWKHHOHFWLRQ
6HFWLRQE
$Q\HPSOR\HHZKRLVLQDQHPSOR\PHQWUHODWLRQVKLSZLWKWKHHPSOR\HUDVZHOODVWKHHPSOR\HUPD\ VXEPLWWRWKHHOHFWLRQFRPPLVVLRQDZULWWHQFRPSODLQWFRQFHUQLQJHUURUVDQGLUUHJXODULWLHVLQWKHOLVWRI FDQGLGDWHVDQGSURSRVHDFRUUHFWLRQEXWQRODWHUWKDQWKUHHGD\VEHIRUHWKHVFKHGXOHGGD\RIWKHHOHFWLRQ 7KHHOHFWLRQFRPPLVVLRQVKDOOUXOHRQVXFKFRPSODLQWDQGQRWLI\WKHFRPSODLQDQWLQZULWLQJRILWVGHFLVLRQ QR ODWHU WKDQ WKH GD\ ZKLFK SUHFHGHV WKH GD\ RI WKHHOHFWLRQ7KHFRPPLVVLRQ VGHFLVLRQLVILQDODQGLV H[HPSWIURPMXGLFLDOUHYLHZ
$Q\HPSOR\HHZKRLVLQDQHPSOR\PHQWUHODWLRQVKLSZLWKWKHHPSOR\HUDVZHOODVWKHHPSOR\HUPD\ ILOH D SHWLWLRQ ZLWK WKH FRXUW GHPDQGLQJQXOOLILFDWLRQRIWKHHOHFWLRQUHVXOWVVHHNLQJWKHUHE\WKHFRXUW V SURWHFWLRQXQGHUDQRWKHU$FW1RWHD LIWKLVSHUVRQKDVDUHDVRQWREHOLHYHWKDWWKHODZZDVEUHDFKHG DQG VXFK EUHDFK FRXOG KDYH VXEVWDQWLDOO\ DIIHFWHG WKH HOHFWLRQ UHVXOWV 6XFK SHWLWLRQ PD\ EH ILOHG LQ ZULWLQJZLWKLQHLJKWGD\VRIWKHDQQRXQFHPHQWRIWKHHOHFWLRQUHVXOWV
,IWKHFRXUWUXOHVWKDWWKHHOHFWLRQUHVXOWVDUHYRLGWKHUHVKDOOEHDUHSHDWHOHFWLRQZLWKLQWKUHHPRQWKV RIWKHGD\ZKHQWKHFRXUW VUXOLQJWDNHVHIIHFW0HPEHUVRIWKHHOHFWLRQFRPPLVVLRQIRUWKHUHSHDWHOHFWLRQ VKDOOEHHPSOR\HHVSXUVXDQWWRVHFWLRQD H[FHSWIRUHPSOR\HHVZKRZHUHPHPEHUVRIWKHHOHFWLRQ FRPPLVVLRQRUFDQGLGDWHVLQWKHRULJLQDOHOHFWLRQ
6HFWLRQF
0HPEHUV RI WKH FRPSHWHQW WUDGH XQLRQ RUJDQL]DWLRQ ERG\ RU ZRUNV FRXQFLO DQG UHSUHVHQWDWLYHV FRQFHUQHG ZLWK VDIHW\ DQG WKH SURWHFWLRQ RI KHDOWK DW ZRUN PD\ QRW EH GLVFULPLQDWHG DJDLQVW RU GLVDGYDQWDJHG LQ WKHLU HQWLWOHPHQWV GXH WR WKH SHUIRUPDQFH RI WKHLU GXWLHV WKH\ PD\ QRW KRZHYHU EH JUDQWHGDQ\DGYDQWDJHVHLWKHU
7KH HPSOR\HHV UHSUHVHQWDWLYHV DQG LQ WKH FDVH GHWHUPLQHG LQ VHFWLRQ VHFRQG VHQWHQFH HPSOR\HHVVKDOOKDYHWKHULJKWWRDVNWKHHPSOR\HUWRSURYLGHVXSSOHPHQWDU\LQIRUPDWLRQDQGDQVZHUVWR TXHVWLRQV
7KH HPSOR\HHV UHSUHVHQWDWLYHV VKDOO LQ DQ DSSURSULDWH PDQQHU LQIRUP RWKHU HPSOR\HHV DW DOO ZRUNSODFHVRIWKHLUDFWLYLW\DQGWKHFRQWHQWDQGFRQFOXVLRQVRIWKHLQIRUPDWLRQSURYLGHGE\WKHHPSOR\HU DQGRIFRQVXOWDWLRQV ZLWKKLP
7KH HPSOR\HU VKDOO IDFLOLWDWH WKH KROGLQJ RI HOHFWLRQV RI HPSOR\HHV UHSUHVHQWDWLYHV DQG FUHDWH FRQGLWLRQV DW KLV RZQ H[SHQVH IRU WKH SURSHU SHUIRUPDQFH RI WKHLU DFWLYLW\ LQ SDUWLFXODU E\ SURYLGLQJ WKHPLQDFFRUGDQFHZLWKKLVRSHUDWLRQDOSRVVLELOLWLHVDQGWRDQDSSURSULDWHH[WHQWZLWKVXLWDEO\HTXLSSHG URRPV FRYHULQJ WKH QHFHVVDU\ FRVW RI WKHLU PDLQWHQDQFH DQG WHFKQLFDO RSHUDWLRQ DQG WKH UHTXLUHG GRFXPHQWDWLRQ
7KH HPSOR\HU VKDOO SURYLGH PHPEHUV RI WKH HOHFWLRQ FRPPLVVLRQ SXUVXDQW WR VHFWLRQ D DQG PHPEHUVRIWKHFRPSHWHQWWUDGHXQLRQRUJDQL]DWLRQERG\ ZRUNVFRXQFLODQGUHSUHVHQWDWLYHVFRQFHUQHG ZLWK VDIHW\ DQG WKH SURWHFWLRQ RI KHDOWK DW ZRUN ZLWK WLPH RII WR WKH QHFHVVDU\ H[WHQW DQG ZLWK D FRPSHQVDWRU\ZDJHLQWKHDPRXQWRIWKHLUDYHUDJHHDUQLQJV([HUFLVHRIWKHIXQFWLRQVRIDPHPEHURIWKH HOHFWLRQFRPPLVVLRQDQGHPSOR\HHV UHSUHVHQWDWLYHVKDOOEHDQDFWLQWKHFRPPRQLQWHUHVW
0HPEHUVRIWKHFRPSHWHQWWUDGHXQLRQRUJDQL]DWLRQERG\ DQGWKHZRUNVFRXQFLODQGUHSUHVHQWDWLYHV
FRQFHUQHGZLWKVDIHW\DQGSURWHFWLRQRIKHDOWKDWZRUNVKDOONHHSLQFRQILGHQFHWKRVHIDFWVRIZKLFKWKH\ OHDUQZKHQH[HUFLVLQJWKHLUIXQFWLRQRIILFH LIDEUHDFKRIWKLVREOLJDWLRQFRXOGUHVXOWLQWKHGLVFORVXUHRI VHFUHWLQIRUPDWLRQRULQIULQJHWKHOHJLWLPDWHLQWHUHVWVRIWKHHPSOR\HURUKLVHPSOR\HHV7KLVREOLJDWLRQ VKDOOFRQWLQXHWRDSSO\DOVRIRUDSHULRGRIRQH\HDUDIWHUWKHH[SLU\RIWKHLUWHUPVRIRIILFHXQOHVVVRPH VSHFLDOVWDWXWRU\SURYLVLRQVVWLSXODWHRWKHUZLVH
7KHHPSOR\HUVKDOOGLVFXVVZLWKKLVHPSOR\HHRURQKLVUHTXHVWZLWKWKHHPSOR\HHV UHSUHVHQWDWLYHV DQ\FRPSODLQWPDGHE\VXFKHPSOR\HHZKHQKLVFRPSODLQWFRQFHUQVWKHH[HUFLVHRIULJKWVDQGREOLJDWLRQV HQVXLQJIURPODERXUUHODWLRQV7KLVVKDOOQRWDIIHFWWKHHPSOR\HH VULJKWWRFODLPKLVULJKWVDWWKHFRXUW
$FFHVVWR7UDQVQDWLRQDO,QIRUPDWLRQDQG&RQVXOWDWLRQ 6HFWLRQG
-RLQW3URYLVLRQV
7KHULJKWRIHPSOR\HHVRI(XURSHDQ&RPPXQLW\VFDOHKHUHDIWHU³&RPPXQLW\VFDOH´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
BBBBBBBBBBBB
6HFWLRQVGWRNVKDOOEHFRPHHIIHFWLYHRQWKH&]HFK5HSXEOLF VDFFHVVLRQWRWKH(8
BBBBBBBBBBBB
7KHREOLJDWLRQWRSURYLGHWUDQVQDWLRQDOVXSUDQDWLRQDO LQIRUPDWLRQDQGFRQVXOWDWLRQVKDOODSSO\ WR D D&RPPXQLW\VFDOHHPSOR\HURUD&RPPXQLW\VFDOHJURXSRIHPSOR\HUVXQGHUWDNLQJV ZLWKDVHDW LQWKH&]HFK5HSXEOLF
E HVWDEOLVKPHQWVLHRUJDQL]DWLRQDOFRPSRQHQWVLQ&]HFK³RUJDQL]DþQtMHGQRWN\´ RID&RPPXQLW\ VFDOHHPSOR\HURUD&RPPXQLW\VFDOHJURXSRIHPSOR\HUVZLWKDVHDWLQWKH&]HFK5HSXEOLF1RWH E
F UHSUHVHQWDWLYHVRID&RPPXQLW\VFDOHHPSOR\HURUD&RPPXQLW\VFDOHJURXSRIHPSOR\HUVSXUVXDQW WRVXEVHFWLRQ LIWKH\KDYHVHDWLQWKH&]HFK5HSXEOLF
)RU WKH SXUSRVHV RI WKLV &RGH D 0HPEHU 6WDWH PHDQV DQ\ PHPEHU FRXQWU\ RI WKH (XURSHDQ &RPPXQLWLHV
)RU WKH SXUSRVHV RI WKLV &RGH ³D &RPPXQLW\VFDOH HPSOR\HU´ RU ³D &RPPXQLW\VFDOH XQGHUWDNLQJ´LQ&]HFK³]DP VWQDYDWHOVS VREQRVWtQD~]HPt(YURSVNêFKVSROHþHQVWYt´ VKDOOPHDQ DQ\ HPSOR\HU XQGHUWDNLQJ ZLWK DW OHDVW HPSOR\HHV LQ WKH 0HPEHU 6WDWHV DQG DW OHDVW HPSOR\HHVLQHDFKRIDWOHDVWWZR0HPEHU6WDWHV )RUWKHSXUSRVHVRIWKLV&RGH³D&RPPXQLW\VFDOHJURXSRIHPSOR\HUV´RU³D&RPPXQLW\VFDOH JURXS RI XQGHUWDNLQJV´ LQ &]HFK ³VNXSLQD ]DP VWQDYDWHO V S VREQRVWt QD ~]HPt (YURSVNêFK
VSROHþHQVWYt´ VKDOO PHDQ D JURXS RI HPSOR\HUV DVVRFLDWHG LQWHUUHODWHG WKURXJK RQH DQG WKH VDPH FRQWUROOLQJ HPSOR\HU WKH FRQWUROOLQJ XQGHUWDNLQJ LI VXFK JURXS RI HPSOR\HUV KDV WKH IROORZLQJ FKDUDFWHULVWLFV D DWOHDVWHPSOR\HHVLQDOOWKH0HPEHU6WDWHVDQG
E DWOHDVWWZRRIWKHHPSOR\HUVLQVXFKJURXSKDYHVHDWVLQGLIIHUHQW0HPEHU6WDWHVDQG
F DWOHDVWRQHRIWKHHPSOR\HUVLQVXFKJURXSHPSOR\VDWOHDVWHPSOR\HHVLQRQH0HPEHU6WDWH DQGDWOHDVWRQHRWKHUHPSOR\HULQWKHJURXSHPSOR\VDWOHDVWHPSOR\HHVLQDQRWKHU0HPEHU 6WDWH
)RUWKHSXUSRVHVRIWKLV&RGH³DFRQWUROOLQJHPSOR\HU´RU³DFRQWUROOLQJXQGHUWDNLQJ´LQ&]HFK ³ tGtFt ]DP VWQDYDWHO´ VKDOO PHDQ DQ HPSOR\HU ZKLFK FDQ FRQWURO GLUHFWO\ RU LQGLUHFWO\ DQRWKHU HPSOR\HURURWKHUHPSOR\HUVZLWKLQRQHJURXSDFRQWUROOHGHPSOR\HU´RU³DFRQWUROOHGXQGHUWDNLQJ´ LQ&]HFK³ t]HQê]DP VWQDYDWHO´ $QHPSOR\HUVKDOOEHUHJDUGHGDVDFRQWUROOLQJHPSOR\HULIGLUHFWO\ RULQGLUHFWO\LQUHODWLRQWRDQRWKHUHPSOR\HURIWKHVDPHJURXS D FDQDSSRLQWPRUHWKDQKDOIRIWKHPHPEHUVRIDQRWKHUHPSOR\HU VDGPLQLVWUDWLYHPDQDJHPHQWRU VXSHUYLVRU\RUJDQERG\ RU
E FRQWUROVDPDMRULW\RIWKHVKDUHKROGHUV YRWHVLQVXFKRWKHUHPSOR\HURU
F RZQVDPDMRULW\RIVXFKHPSOR\HU VUHJLVWHUHGVXEVFULEHG FDSLWDO
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³WKH0HUJHU5HJXODWLRQ´ VKDOO QRWEHGHHPHGWREHDFRQWUROOLQJHPSOR\HUDFRQWUROOLQJXQGHUWDNLQJ
)RUWKHSXUSRVHVRIWKLV&RGH³FHQWUDOPDQDJHPHQW´LQ&]HFK³~VW HGt´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
)RUWKHSXUSRVHVRIWKLV&RGHWKHQXPEHURIHPSOR\HHVVKDOOEHGHWHUPLQHGDVWKHDYHUDJHQXPEHU LQWKHWZR\HDUVSUHFHGLQJVXEPLVVLRQRIDUHTXHVWRUSUHFHGLQJWKHFRPPHQFHPHQWRIQHJRWLDWLRQVE\ WKH FHQWUDO PDQDJHPHQW SXUVXDQW WR VHFWLRQ H 7KH FHQWUDO PDQDJHPHQW LV REOLJHG WR SURYLGH HPSOR\HHV RU WKHLU UHSUHVHQWDWLYHV ZLWK LQIRUPDWLRQ RQ WKH WRWDO QXPEHU RI HPSOR\HHV DQG WKHLU VWUXFWXUH FRPSRVLWLRQ LQ RUGHU WR HVWDEOLVK ZKHWKHU D (XURSHDQ ZRUNV FRXQFLO RU VRPH RWKHU SURFHGXUH IRU WUDQVQDWLRQDO LQIRUPDWLRQ DQG FRQVXOWDWLRQ PD\ EH VHW XS (PSOR\HHV RU WKHLU UHSUHVHQWDWLYHV FDQ DVN WKHLU HPSOR\HU IRU VXFK LQIRUPDWLRQ DQG KH LV REOLJHG WR REWDLQ WKLV LQIRUPDWLRQIURPWKHFHQWUDOPDQDJHPHQW
6HFWLRQF VKDOODSSO\WRPHPEHUVRIDVSHFLDOQHJRWLDWLQJERG\FRPPLWWHH RU(XURSHDQ
ZRUNVFRXQFLODQGWRHPSOR\HHV UHSUHVHQWDWLYHVDFFRUGLQJWRDQRWKHUDJUHHGSURFHGXUH DVZHOODVWR HPSOR\HUV
6HFWLRQH
6SHFLDO1HJRWLDWLQJ%RG\
$VSHFLDOQHJRWLDWLQJERG\DOVRUHIHUUHGWRDV³DQHJRWLDWLQJFRPPLWWHH´LQ&]HFK³Y\MHGQiYDFt YêERU´ LVVHWXSLQRUGHUWRQHJRWLDWHZLWKWKHFHQWUDOPDQDJHPHQWWKHHVWDEOLVKPHQWRID(XURSHDQ ZRUNVFRXQFLORUDSURFHGXUHWREHXVHGIRUSURYLGLQJWUDQVQDWLRQDOLQIRUPDWLRQDQGFRQVXOWDWLRQ
1HJRWLDWLRQVFRQFHUQLQJWKHVHWWLQJXSRIDVSHFLDOQHJRWLDWLQJERG\VKDOOEHRSHQHGE\WKHFHQWUDO PDQDJHPHQWDFWLQJHLWKHURQLWVRZQLQLWLDWLYHRUDWWKHZULWWHQUHTXHVWRIDPLQLPXPRIHPSOR\HHV RIDWOHDVWWZRHPSOR\HUVXQGHUWDNLQJV LQWZRGLIIHUHQW0HPEHU6WDWHVRUDWWKHZULWWHQUHTXHVWRIWKH HPSOR\HHV UHSUHVHQWDWLYHV
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
7KH FHQWUDO PDQDJHPHQW VKDOO FRQYHQH D FRQVWLWXHQW PHHWLQJ RI WKH VSHFLDO QHJRWLDWLQJ ERG\ IRUWKZLWK DIWHU LW UHFHLYHV LQIRUPDWLRQ WKDW WKH PHPEHUV RI WKH VSHFLDO QHJRWLDWLQJ ERG\ KDYH EHHQ DSSRLQWHG7KHPHPEHUVVKDOOHOHFWDFKDLUPDQDWVXFKFRQVWLWXHQWPHHWLQJRIWKHVSHFLDOQHJRWLDWLQJ ERG\7KLVVSHFLDOQHJRWLDWLQJERG\VKDOOKDYHWKHULJKWWRPHHWVHSDUDWHO\EHIRUHHDFKQHJRWLDWLRQZLWK WKHFHQWUDOPDQDJHPHQW,IQHFHVVDU\WKHVSHFLDOQHJRWLDWLQJERG\PD\LQYLWHH[SHUWVWRLWVPHHWLQJ
8QOHVVLWLVIXUWKHUSURYLGHGIRURWKHUZLVHWKHVSHFLDOQHJRWLDWLQJERG\VKDOODGRSWUHVROXWLRQVLH WDNHGHFLVLRQV E\DPDMRULW\RIYRWHVRIDOOLWVPHPEHUV
1HJRWLDWLRQV EHWZHHQ WKH FHQWUDO PDQDJHPHQW DQG WKH VSHFLDO QHJRWLDWLQJ ERG\ WKH (XURSHDQ ZRUNV FRXQFLO DQG DQ\ RWKHU RUJDQ ERG\ FRQFHUQHG ZLWK DQRWKHU SURFHGXUH IRU SURYLGLQJ WUDQVQDWLRQDOLQIRUPDWLRQDQGFRQVXOWDWLRQPXVWEHFRQGXFWHGLQDVSLULWRIFRRSHUDWLRQ
7KHYHQXHVDQGGDWHVIRUMRLQWQHJRWLDWLRQVVKDOOEHDJUHHGEHWZHHQWKHVSHFLDOQHJRWLDWLQJERG\ DQGWKHFHQWUDOPDQDJHPHQW7KHFRVWRIWKHVSHFLDOQHJRWLDWLQJERG\ VZRUNVKDOOEHFRYHUHGE\WKH HPSOR\HU
6HFWLRQI
5HVROXWLRQWR7HUPLQDWH1HJRWLDWLRQV
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
6HFWLRQJ
7KHFHQWUDOPDQDJHPHQWDQGWKHVSHFLDOQHJRWLDWLQJERG\PD\DJUHHWRHVWDEOLVKD(XURSHDQZRUNV FRXQFLORUDQRWKHUSURFHGXUHIRUSURYLGLQJWUDQVQDWLRQDOLQIRUPDWLRQDQGFRQVXOWDWLRQ7KH\VKDOOQRW EHWKHUHE\ERXQGE\WKHSURYLVLRQVRIVHFWLRQVMWRO
$ (XURSHDQ ZRUNV FRXQFLO PD\ EH HQODUJHG E\ LQFOXGLQJ UHSUHVHQWDWLYHV RI WKH HPSOR\HU V HPSOR\HHVIURP6WDWHVZKLFKDUHQRWPHPEHUVRIWKH(XURSHDQ&RPPXQLWLHVLIWKLVLVDJUHHGE\WKH FHQWUDOPDQDJHPHQWDQGWKHVSHFLDOQHJRWLDWLQJERG\
6HFWLRQK
(XURSHDQ:RUNV&RXQFLO(VWDEOLVKHGE\$JUHHPHQW
$QDJUHHPHQWWRHVWDEOLVKD(XURSHDQZRUNVFRXQFLOPXVWEHLQZULWLQJDQGLQFOXGHLQSDUWLFXODU WKHIROORZLQJ D DGHWHUPLQDWLRQRIDOOWKHHPSOR\HUVWRZKRPLWUHODWHV
E WKHPDQQHURIHVWDEOLVKLQJDQGWKHFRPSRVLWLRQRIVXFKFRXQFLOWKHQXPEHURILWVPHPEHUVDQG VXEVWLWXWHVDQGLWVWHUPRIRIILFH
F WKHYHQXHIUHTXHQF\DQGGXUDWLRQRILWVGHOLEHUDWLRQV
G WKH WDVNV SRZHUV DQG REOLJDWLRQV RI VXFK FRXQFLO WKH FHQWUDO PDQDJHPHQW DQG HPSOR\HUV ZLWK UHJDUGWRHPSOR\HHV ULJKWWRLQIRUPDWLRQDQGFRQVXOWDWLRQ
H WKHPHWKRGRIFRQYHQLQJPHHWLQJV
I WKHPHWKRGRIILQDQFLQJZRUNRIVXFKFRXQFLO
J WKHSURFHGXUHWREHIROORZHGLQWKHFDVHRIRUJDQL]DWLRQDOFKDQJHV
K WKH SHULRG RI HIIHFWLYHQHVV RI WKH DJUHHPHQW WR HVWDEOLVK D (XURSHDQ ZRUNV FRXQFLO DQG WKH SRVVLELOLW\RIUHQHJRWLDWLQJWKHDJUHHPHQWLQFOXGLQJWUDQVLWRU\SURYLVLRQV
6HFWLRQL
$JUHHPHQWRQ$QRWKHU3URFHGXUHIRU3URYLGLQJ7UDQVQDWLRQDO,QIRUPDWLRQDQG&RQVXOWDWLRQ
$Q DJUHHPHQW RQ DQRWKHU SURFHGXUH IRU SURYLGLQJ WUDQVQDWLRQDO LQIRUPDWLRQ DQG FRQVXOWDWLRQ PXVWEHLQZULWLQJDQGLQFOXGHLQSDUWLFXODUWKHIROORZLQJ D WKHVXEMHFWRIWKHLQIRUPDWLRQDQGFRQVXOWDWLRQHVSHFLDOO\LWVWUDQVQDWLRQDOQDWXUHDVWKLVUHODWHVWR LPSRUWDQWLQWHUHVWVRIWKHHPSOR\HHV
E WKHPHWKRGRIIDFLOLWDWLQJMRLQWGLVFXVVLRQE\HPSOR\HHV UHSUHVHQWDWLYHVRQLQIRUPDWLRQSURYLGHGE\ WKHFHQWUDOPDQDJHPHQW
F WKHPHWKRGRIIDFLOLWDWLQJFRQVXOWDWLRQZLWKWKHFHQWUDOPDQDJHPHQWRUDQRWKHUFRPSHWHQWOHYHORI PDQDJHPHQW
6HFWLRQM
(XURSHDQ:RUNV&RXQFLOV(VWDEOLVKHGXQGHUWKLV&RGH
$(XURSHDQZRUNVFRXQFLOVKDOOEHHVWDEOLVKHGXQGHUWKLV&RGHLI
D WKLVLVMRLQWO\DJUHHGE\WKHFHQWUDOPDQDJHPHQWDQGWKHVSHFLDOQHJRWLDWLQJERG\RU
E WKH FHQWUDO PDQDJHPHQW UHIXVHV WR RSHQ QHJRWLDWLRQV ZLWKLQ VL[ PRQWKV RI WKH ILOLQJ RI DQ HPSOR\HHV UHTXHVWXQGHUVHFWLRQH IRUWKHVHWWLQJXSRID(XURSHDQZRUNVFRXQFLORUDQRWKHU SURFHGXUHIRUSURYLGLQJWUDQVQDWLRQDOLQIRUPDWLRQDQGFRQVXOWDWLRQRU
F ZLWKLQWKUHH\HDUVRIWKHILOLQJRIDUHTXHVWXQGHUVHFWLRQH QRSURFHGXUDODJUHHPHQWKDVEHHQ UHDFKHG EHWZHHQ WKH FHQWUDO PDQDJHPHQW DQG WKH VSHFLDO QHJRWLDWLQJ ERG\ DQG WKH VSHFLDO QHJRWLDWLQJERG\KDVQRWDGRSWHGDUHVROXWLRQXQGHUVHFWLRQIWRWHUPLQDWHQHJRWLDWLRQV
0HPEHUV RI WKH (XURSHDQ ZRUNV FRXQFLO VKDOO EH DSSRLQWHG IURP DPRQJ HPSOR\HHV DW D MRLQW PHHWLQJRIHPSOR\HHV UHSUHVHQWDWLYHV,IHPSOR\HHV UHSUHVHQWDWLYHVKDYHQRWEHHQDSSRLQWHGRUWKH\ IDLOWRIXQFWLRQDWDQHPSOR\HU VXQGHUWDNLQJHQWHUSULVH RULWVSDUWWKHHPSOR\HHVRIVXFKHPSOR\HU VKDOOHOHFWDUHSUHVHQWDWLYHWRWDNHSDUWRQWKHLUEHKDOILQWKHMRLQWPHHWLQJ7KHDOORFDWLRQRIYRWHVDW VXFKPHHWLQJVKDOOEHGHWHUPLQHGLQSURSRUWLRQWRWKHQXPEHURIHPSOR\HHVUHSUHVHQWHG
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
,I D &RPPXQLW\VFDOH HPSOR\HU RU D &RPPXQLW\VFDOH JURXS RI HPSOR\HUV KDV DW OHDVW HPSOR\HHVLQ0HPEHU6WDWHVLQHDFK0HPEHU6WDWHZKHUHVXFKHPSOR\HU VHPSOR\HHVFRQVWLWXWHDWOHDVW RI DOO WKH HPSOR\HU V HPSOR\HHV WKH\ VKDOO EH UHSUHVHQWHG E\ D VXSSOHPHQWDU\ PHPEHU ,Q D 0HPEHU6WDWHZKHUHWKHHPSOR\HU VHPSOR\HHVFRQVWLWXWHDWOHDVWRIDOOVXFKHPSOR\HU VHPSOR\HHV WKH\VKDOOEHUHSUHVHQWHGE\WKUHHVXSSOHPHQWDU\PHPEHUVDQGLIWKH\FRQVWLWXWHDWOHDVWRIDOOWKH HPSOR\HU VHPSOR\HHVWKH\VKDOOEHUHSUHVHQWHGE\ILYHVXSSOHPHQWDU\PHPEHUVZKLOHLIWKH\FRQVWLWXWH DW OHDVW RI DOO WKH HPSOR\HU V HPSOR\HHV WKH\ VKDOO EH UHSUHVHQWHG E\ VHYHQ VXSSOHPHQWDU\ PHPEHUV,IWKHUHDUHDWOHDVWRIDOOWKHHPSOR\HU VHPSOR\HHVLQRQH0HPEHU6WDWHWKH\VKDOOEH UHSUHVHQWHG E\ QLQH VXSSOHPHQWDU\ PHPEHUV DQG LI WKHUH DUH DW OHDVW RI DOO WKH HPSOR\HU V HPSOR\HHVLQRQH0HPEHU6WDWHWKH\VKDOOEHUHSUHVHQWHGE\VXSSOHPHQWDU\PHPEHUVZKLOHLIWKH\ FRQVWLWXWHDWOHDVWRIDOOWKHHPSOR\HU VHPSOR\HHVWKH\VKDOOEHUHSUHVHQWHGE\VXSSOHPHQWDU\ PHPEHUV
0HPEHUVRID(XURSHDQZRUNVFRXQFLOLQWKH&]HFK5HSXEOLFVKDOOEHDSSRLQWHGIURPDPRQJORFDO HPSOR\HHV DW D MRLQW PHHWLQJ RI HPSOR\HHV UHSUHVHQWDWLYHV ,I HPSOR\HHV UHSUHVHQWDWLYHV DUH QRW
DSSRLQWHG RU WKH\ IDLO WR IXQFWLRQ DW WKH HPSOR\HU V HQWHUSULVH XQGHUWDNLQJ WKH HPSOR\HHV VKDOO DSSRLQWDUHSUHVHQWDWLYHZKRZLOOWDNHSDUWLQWKHMRLQWPHHWLQJRQWKHLUEHKDOI7KHDOORFDWLRQRIYRWHV DWVXFKDMRLQWPHHWLQJVKDOOEHSURSRUWLRQDWHWRWKHQXPEHURIHPSOR\HHVUHSUHVHQWHG
$ (XURSHDQ ZRUNV FRXQFLO VKDOO FRPPXQLFDWH WKH QDPHV RI LWV PHPEHUV DQG WKHLU DGGUHVVHV IRUWKZLWKWRWKHFHQWUDOPDQDJHPHQWZKLFKVKDOOSDVVRQVXFKLQIRUPDWLRQWRWKHHPSOR\HUVDQGWKH HPSOR\HHV UHSUHVHQWDWLYHVRUWRWKHHPSOR\HHV
7KHWHUPRIRIILFHRIPHPEHUVRID(XURSHDQZRUNVFRXQFLOVKDOOEHIRXU\HDUV$IWHUWKHH[SLU\RI IRXU \HDUV IURP WKH FRQVWLWXHQW PHHWLQJ WKH (XURSHDQ ZRUNV FRXQFLO FRQFHUQHG VKDOO YRWH RQ D UHVROXWLRQDERXWZKHWKHULWZLOOQHJRWLDWHZLWKWKHFHQWUDOPDQDJHPHQWXQGHUVHFWLRQHRUZKHWKHU DQRWKHU VXFFHVVRU (XURSHDQ ZRUNV FRXQFLO ZLOO EH HVWDEOLVKHG XQGHU WKLV VHFWLRQ 6XFK UHVROXWLRQ VKDOOEHDGRSWHGE\DWZRWKLUGVPDMRULW\RIDOOWKHPHPEHUVDSSRLQWHGWRWKHFRXQFLO6HFWLRQHVKDOO DSSO\WRQHJRWLDWLRQVZLWKWKHFHQWUDOPDQDJHPHQW
$W OHDVW RQFH HYHU\ FDOHQGDU \HDU WKH FHQWUDO PDQDJHPHQW VKDOO FRQVXOW WKH (XURSHDQ ZRUNV FRXQFLOLQSDUWLFXODUDERXWWKHIROORZLQJ D WKH RUJDQL]DWLRQDO VWUXFWXUH RI WKH HPSOR\HU V XQGHUWDNLQJ HQWHUSULVH DQG LWV HFRQRPLF DQG ILQDQFLDOVLWXDWLRQ
E OLNHO\WUHQGVLQLWVEXVLQHVV DFWLYLWLHVSURGXFWLRQRXWSXW VDOHVDQGHPSOR\PHQW
F LQYHVWPHQWVDQGVXEVWDQWLDOFKDQJHVLQZRUNRUJDQL]DWLRQDQGWHFKQRORJLHV
G DQ\WUDQVIHURIWKHHPSOR\HU VXQGHUWDNLQJRUDSDUWRIVXFKXQGHUWDNLQJEXVLQHVVDFWLYLWLHV WKH UHDVRQV IRU DQ\ VXFK WUDQVIHU LWV PDMRU FRQVHTXHQFHV LPSOLFDWLRQV DQG PHDVXUHV DIIHFWLQJ HPSOR\HHV
H ODUJHVFDOHGLVPLVVDOVWKHUHDVRQVIRUWKHPWKHQXPEHUVLQYROYHGWKHLUVWUXFWXUHWKHFULWHULDWREH XVHG ZKHQ GHWHUPLQLQJ ZKLFK HPSOR\HHV DUH WR KDYH WKHLU HPSOR\PHQW UHODWLRQVKLS WHUPLQDWHG DQGWKHEHQHILWVWRZKLFKVXFKHPSOR\HHVZLOOEHHQWLWOHGLQDGGLWLRQWRWKHEHQHILWVHQVXLQJIURP WKHVWDWXWRU\SURYLVLRQVUHJXODWLRQV
6KRXOGH[WUDRUGLQDU\FLUFXPVWDQFHVRFFXUZKLFKVXEVWDQWLDOO\DIIHFWWKHHPSOR\HHV LQWHUHVWVWKH FHQWUDOPDQDJHPHQWVKDOOLQIRUPIRUWKZLWKWKH(XURSHDQZRUNVFRXQFLORIVXFKFLUFXPVWDQFHVDQGDW LWV UHTXHVW FRQVXOW LW DERXW WKH QHFHVVDU\ PHDVXUHV ,I D FRPPLWWHH XQGHU VHFWLRQ N KDV EHHQ HVWDEOLVKHG WKH FHQWUDO PDQDJHPHQW PD\ FRQVXOW WKLV FRPPLWWHH +RZHYHU WKH FHQWUDO PDQDJHPHQW PXVW HQDEOH WKRVH PHPEHUV RI WKH (XURSHDQ ZRUNV FRXQFLO ZKR ZHUH HOHFWHG RU DSSRLQWHG DW WKH XQGHUWDNLQJ WR ZKLFK VXFK PHDVXUHV UHODWH WR WDNH SDUW LQ VXFK FRQVXOWDWLRQ ([WUDRUGLQDU\ FLUFXPVWDQFHVVKDOOLQSDUWLFXODUPHDQ D WKHZLQGLQJXSGLVVROXWLRQRUWUDQVIHURIWKHHPSOR\HU VXQGHUWDNLQJEXVLQHVV RUDSDUWRILW
E ODUJHVFDOHGLVPLVVDOV
7KHFHQWUDOPDQDJHPHQWVKDOOLQIRUPWKH(XURSHDQZRUNVFRXQFLOLQZULWLQJDQGFRQVXOWLWRQWKH PDWWHUV XQGHU VXEVHFWLRQV DQG LI WKH\ LQYROYH DW OHDVW WZR XQGHUWDNLQJV EXVLQHVVHV LQ WZR GLIIHUHQW0HPEHU6WDWHVWKHSRZHUVRIWKH(XURSHDQZRUNVFRXQFLODSSO\RQO\WRPDWWHUVZKLFKUHODWH WRWKH0HPEHU6WDWHV
6HFWLRQN
7KH FHQWUDO PDQDJHPHQW VKDOO IRUWKZLWK FRQYHQH WKH FRQVWLWXHQW PHHWLQJ RI D (XURSHDQ ZRUNV FRXQFLO$WVXFKPHHWLQJWKHPHPEHUVRIWKHFRXQFLOVKDOOHOHFWDFKDLUPDQDQGDGHSXW\FKDLUPDQ
7KHFKDLUPDQRIVXFK(XURSHDQZRUNVFRXQFLODQGLQKLVDEVHQFHKLVGHSXW\VKDOOUHSUHVHQWWKH
FRXQFLOLQLWVRXWVLGHGHDOLQJVDQGGLUHFWLWVRUGLQDU\DFWLYLW\,IVXFKFRXQFLOFRQVLGHUVLWQHFHVVDU\LW VKDOO DSSRLQW D WKUHHPHPEHU FRPPLWWHH FRQVLVWLQJ RI WKH FKDLUPDQ DQG WZR RWKHU PHPEHUV 7KH PHPEHUVRIVXFKFRPPLWWHHPXVWEHIURPDWOHDVWWZRGLIIHUHQW0HPEHU6WDWHV7KHFRPPLWWHHVKDOO GLUHFWWKHRUGLQDU\DFWLYLW\RIWKHFRXQFLO
$(XURSHDQZRUNVFRXQFLOKDVWKHULJKWWRPHHWZLWKRXWWKHSUHVHQFHRIWKHFRPSHWHQWPDQDJHULDO VWDIIWRGLVFXVVLQIRUPDWLRQSDVVHGRQWRWKHFRXQFLOE\WKHFHQWUDOPDQDJHPHQW7KHYHQXHDQGGDWHRI VXFK PHHWLQJ VKDOO EH DJUHHG ZLWK WKH FHQWUDO PDQDJHPHQW 7KH GHOLEHUDWLRQV RI D (XURSHDQ ZRUNV FRXQFLO VKDOO QRW EH RSHQ WR WKH SXEOLF ,W FDQ LQYLWH H[SHUWV WR LWV PHHWLQJ LI WKLV LV QHFHVVDU\ IRU IXOILOPHQW RI LWV WDVNV ,W FDQ DOVR LQYLWH PDQDJHULDO VWDII WR LWV PHHWLQJ WR SURYLGH VXSSOHPHQWDU\ LQIRUPDWLRQDQGH[SODQDWLRQV
8QOHVV LW LV SURYLGHG IRU RWKHUZLVH D (XURSHDQ ZRUNV FRXQFLO PD\ DGRSW UHVROXWLRQV LH WDNH GHFLVLRQV LIPRUHWKDQRQHKDOIRILWVPHPEHUVDUHSUHVHQWDUHVROXWLRQVKDOOEHDGRSWHGE\DVLPSOH PDMRULW\RIWKHYRWHVRIWKRVHPHPEHUVDWWHQGLQJWKHPHHWLQJ
$(XURSHDQZRUNVFRXQFLOPD\GHWHUPLQHLWVRZQSURFHGXUDOUXOHVZKLFKPXVWEHLQZULWLQJDQG DSSURYHGE\DPDMRULW\RIDOOPHPEHUVRIWKHFRXQFLO
6HFWLRQO
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
6HFWLRQ
2UJDQVERGLHV VXSHULRUWRHPSOR\HUVVKDOOPRQLWRUKRZHPSOR\HUVIXOILOWKHLUREOLJDWLRQVZKHQ IRUPLQJDQGGHYHORSLQJODERXUUHODWLRQV>VHFWLRQ @DVFHUWDLQWKHUHDVRQVZK\SURYLVLRQVRIWKHODERXU OHJLVODWLRQKDYHEHHQEUHDFKHGGUDZFRQFOXVLRQVWKHUHIURPDQGV\VWHPDWLFDOO\FUHDWHFRQGLWLRQVIRU FRPSOLDQFHZLWKVXFKSURYLVLRQV
3$577:2
(03/2<0(175(/$7,216+,36 &+$37(5,
&200(1&(0(1702',),&$7,21$1'7(50,1$7,212)$1 (03/2<0(175(/$7,216+,3 6HFWLRQ
:KLOHZRUNLQJIRUDZDJHDQHPSOR\HHLQDQHPSOR\PHQWUHODWLRQVKLSVKDOOVKDUHLQSHUIRUPDQFHRI WKHHPSOR\HU VWDVNVLQDFFRUGDQFHZLWKWKHHPSOR\HU VLQVWUXFWLRQV $QHPSOR\PHQWUHODWLRQVKLSVKDOOEHEDVHGRQDFRQWUDFWEHWZHHQDQHPSOR\HUDQGDQHPSOR\HH
$QHPSOR\PHQWUHODWLRQVKLSVKDOOEHEDVHGRQHOHFWLRQLQWKHFDVHVODLGGRZQLQVSHFLDOSURYLVLRQVRU LQWKHVWDWXWHVE\ODZV RUUHVROXWLRQVRIWKHFRPSHWHQWRUJDQVRIFRRSHUDWLYHVRUFLYLFDVVRFLDWLRQVWKH ODWWHUKDYLQJEHHQHVWDEOLVKHGLQDFFRUGDQFHZLWKDQRWKHU$FW1RWH
$QHPSOR\PHQWUHODWLRQVKLSVKDOOEHEDVHGRQDSSRLQWPHQWLQWKHFDVHRIVHQLRU PDQDJHULDOVWDII ZKRDUHQRPLQDWHGWRWKHLUSRVLWLRQLQDFFRUGDQFHZLWKRWKHUVWDWXWRU\SURYLVLRQVDQGZKHQVXFKVWDIIDUH QRPLQDWHGWRWKHLUSRVLWLRQE\DVWDWXWRU\RUJDQRIDQHPSOR\HUZKLFKLVDOHJDOHQWLW\ RUE\DQHPSOR\HU ZKRLVDQLQGLYLGXDO
³0DQDJHULDOVWDIISRVWV´DUHSRVWVWRZKLFKWKHVWDWXWRU\RUJDQLQWKHFDVHRIDOHJDOHQWLW\ RUWKH HPSOR\HUZKHQWKHHPSOR\HULVDQLQGLYLGXDO QRPLQDWHVHPSOR\HHVQDPHO\SRVWV
D RYHUZKLFKGLUHFWFRQWUROLVH[HUFLVHGE\
WKHVWDWXWRU\RUJDQLIWKHHPSOR\HULVDOHJDOHQWLW\ WKHHPSOR\HULIWKHHPSOR\HULVDQLQGLYLGXDO
E RYHU ZKLFK GLUHFW FRQWURO LV H[HUFLVHG E\ DQRWKHU PHPEHU RI WKH PDQDJHULDO VWDII ZKR LV GLUHFWO\ VXERUGLQDWHWR
WKHVWDWXWRU\RUJDQLIWKHHPSOR\HULVDOHJDOHQWLW\
WKHHPSOR\HULIWKHHPSOR\HULVDQLQGLYLGXDO
XQGHUWKHFRQGLWLRQWKDWDQRWKHUPHPEHURIWKHPDQDJHULDOVWDIILVVXERUGLQDWHWRWKLVSHUVRQ
F LQFHQWUDOVWDWHDXWKRULWLHV
,QWKHFDVHRIDQHPSOR\HUZKLFKLVDOHJDOHQWLW\WKHDSSRLQWPHQWRUUHFDOORIPDQDJHULDOVWDIIPD\EH HIIHFWHG H[FOXVLYHO\ E\ WKH VWDWXWRU\ RUJDQ DQG LQ WKH FDVH RI DQ HPSOR\HU ZKR LV DQ LQGLYLGXDO H[FOXVLYHO\ E\ WKH HPSOR\HU ,IWKH6WDWHLVWKHHPSOR\HUVXFKDSSRLQWPHQWDQGUHFDOOPD\EHHIIHFWHG H[FOXVLYHO\E\WKHKHDGRIVXFKVWDWHRUJDQL]DWLRQDOFRPSRQHQWDXWKRULW\HVWDEOLVKPHQW1RWH 7KH SRZHURIDSSRLQWPHQWDQGUHFDOOFDQQRWEHGHOHJDWHGWRDQRWKHUSHUVRQ
'LYLVLRQ
(PSOR\PHQW&RQWUDFWVDQGWKH&RPPHQFHPHQWRI(PSOR\PHQW5HODWLRQVKLSV 6HFWLRQ
3ULRUWRHQWHULQJLQWRDQHPSOR\PHQWFRQWUDFWWKHHPSOR\HULVREOLJHGWRDFTXDLQWKLVHPSOR\HHZLWK WKHULJKWVKHZLOODFTXLUHDQGWKHREOLJDWLRQVKHZLOODVVXPHXQGHUWKHHPSOR\PHQWFRQWUDFWDQGZLWKWKH ZRUNLQJDQGZDJHFRQGLWLRQVXQGHUZKLFKKHLVWRSHUIRUPKLVZRUN,QFDVHVVSHFLILHGE\WKHVWDWHKHDOWK DGPLQLVWUDWLRQDXWKRULWLHVWKHHPSOR\HUVKDOOHQVXUHWKDWSULRUWRHQWHULQJLQWRDQHPSOR\PHQWFRQWUDFWWKH HPSOR\HHXQGHUWDNHVDSUHHQWU\PHGLFDOH[DPLQDWLRQ6HFWLRQV DQG DQG WR VKDOOVLPLODUO\ DSSO\
6HFWLRQ
,Q WKH HPSOR\PHQW FRQWUDFW WKH HPSOR\HU LV UHTXLUHG WR FRPH WR DQ DJUHHPHQW ZLWK WKH HPSOR\HH
XSRQ
D WKHW\SHRIZRUNLQZKLFKWKHHPSOR\HHZLOOEHHQJDJHG
E WKH SODFH ZKHUH WKH ZRUN ZLOO EH SHUIRUPHG D FLW\ WRZQ RU YLOODJH DQGRUJDQL]DWLRQDOXQLWRUDQ RWKHUZLVHVSHFLILHGSODFH
F WKHGD\WKHHPSOR\HHZLOOWDNHXSKLVZRUN
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
7KHHPSOR\HUPD\DJUHHZLWKDVHQLRUHPSOR\HHDVHQLRUH[HFXWLYH ZKRVHHPSOR\PHQWUHODWLRQVKLS LVEDVHGRQDSSRLQWPHQWRUHOHFWLRQWKDWKHLVHQWLWOHGWRUHGXQGDQF\VHYHUDQFH SD\LQWKHHYHQWRIVXFK VHQLRU HPSOR\HH H[HFXWLYH EHLQJ UHFDOOHG IURP KLV SRVW EHIRUH H[SLU\ RI KLV WHQXUH SURYLGHG WKDW D FRPSHWLWLRQ FODXVH LV VLPXOWDQHRXVO\ DJUHHG LQ WKH FRQWUDFW $Q\ RWKHU DUUDQJHPHQWV RQ VHYHUDQFH SD\ ZKLFKFRQWUDGLFWWKHDERYHPHQWLRQHGFRQGLWLRQVVKDOOEHYRLG
6HFWLRQ
$Q HPSOR\PHQW UHODWLRQVKLS LV DJUHHG IRU DQ LQGHILQLWH SHULRG RI WLPH XQOHVV LW LV D IL[HGWHUP FRQWUDFW LQ ZKLFK FDVH VXFK WHUP PXVW EH H[SOLFLWO\ VWDWHG LQ WKH FRQWUDFW RU ZKHQ WKH FRQWUDFW RU DQ DPHQGPHQWWRLWIDLOVWRPHHWWKHFRQGLWLRQVXQGHUVXEVHFWLRQV RU EHORZ $QHPSOR\PHQWUHODWLRQVKLSIRUDIL[HGWHUPPD\QRWEHDJUHHGZLWK
D JUDGXDWHV RI VHFRQGDU\ DQG XQLYHUVLW\OHYHO VFKRROV DSSUHQWLFH YRFDWLRQDO VFKRROV RU DSSUHQWLFH VFKRROV LI WKH\ HQWHU LQWR DQ HPSOR\PHQW UHODWLRQVKLS IRU ZRUN ZKLFK FRUUHVSRQGV WR WKHLU TXDOLILFDWLRQVWKHWHUP³JUDGXDWH´VKDOOPHDQDQHPSOR\HHZKRVHHQWLUHSHULRGLQHPSOR\PHQWRUDQ DQDORJRXVUHODWLRQVKLSDIWHUVXFFHVVIXOFRPSOHWLRQRIKLVVWXGLHVSUHSDUDWLRQ GRHVQRWH[FHHGWZR \HDUV 6XFK WZR\HDU SHULRG VKDOO QRW LQFOXGH DQ HPSOR\HH V EDVLF PLOLWDU\ RU DOWHUQDWLYH VHUYLFH PDWHUQLW\ OHDYH DQG DGGLWLRQDO PDWHUQLW\ OHDYH RU WLPH RII ZKHQ D PDQ V DEVHQFH IURP ZRUN LV H[FXVHGE\WKHHPSOR\HUXQGHUVHFWLRQ EHFDXVHVXFKHPSOR\HHLVHQWLWOHGWRSDUHQWDOEHQHILWV
E DGROHVFHQWV
F HPSOR\HHVVSHFLILHGLQDFROOHFWLYHEDUJDLQLQJDJUHHPHQW
BBBBBBBBBBBBBBBBBB
6HFWLRQ ZDVUHSHDOHGXQGHU$FW1R&ROODVRI-DQXDU\
BBBBBBBBBBBBBBBBBB
7KHSURKLELWLRQXQGHUVXEVHFWLRQ VKDOOQRWDSSO\LQFDVHVZKHUHDQLQGLYLGXDOVXEPLWVDZULWWHQ UHTXHVWIRUDIL[HGWHUPHPSOR\PHQWUHODWLRQVKLSWRKLVHPSOR\HU
6HFWLRQ
$Q HPSOR\PHQW FRQWUDFW PD\ DOVR FRQWDLQ D SURYLVLRQ IRU D WULDO LH SUREDWLRQDU\ SHULRG ZKLFK XQOHVVDVKRUWHUSHULRGLVDJUHHGVKDOOODVWWKUHHPRQWKV$QDJUHHGWULDOSHULRGPD\QRWEHVXEVHTXHQWO\
H[WHQGHG
$ SHULRG RI WLPH LQ WKH WULDO SHULRG QRW H[FHHGLQJ WHQ ZRUNLQJ GD\V GXULQJ ZKLFK WKH HPSOR\HH FDQQRWZRUNGXHWRLPSHGLPHQWVDWZRUNVKDOOEHFDOFXODWHGDVSDUWRIWKHWULDOSHULRG
7KHWULDOSHULRGPXVWEHDJUHHGLQZULWLQJRWKHUZLVHWKHDJUHHPHQWRQLWVKDOOEHYRLG
6HFWLRQ
(YHU\HPSOR\HULVUHTXLUHGWRFRQFOXGHDQHPSOR\PHQWFRQWUDFWLQZULWLQJ,IKRZHYHULWFRQFHUQVDQ HPSOR\PHQWUHODWLRQVKLSZKLFKLVWRODVWIRUDWHUPRIOHVVWKDQRQHPRQWKWKHHPSOR\HULVRQO\UHTXLUHG WRFRQFOXGHWKHFRQWUDFWLQZULWLQJLIWKHHPSOR\HHVRUHTXHVWVRULIWKHFRQWUDFWLVZLWKDQHPSOR\HHZKR KDV EHHQGHSULYHGRIKLVFDSDFLW\WRSHUIRUPDFWVLQODZRUZKRVHFDSDFLW\WRSHUIRUPDFWVLQODZKDV EHHQUHVWULFWHGE\DMXGLFLDOGHFLVLRQUXOLQJMXGJPHQW (YHU\HPSOR\HULVREOLJHGWRSURYLGHKLVHPSOR\HHZLWKDFRS\RIWKHZULWWHQHPSOR\PHQWFRQWUDFW
:KHUHDQHPSOR\PHQWFRQWUDFWGRHVQRWFRQWDLQLQIRUPDWLRQDERXWWKHULJKWVDQGREOLJDWLRQVHQVXLQJ IURPWKHHPSOR\PHQWUHODWLRQVKLSWKHHPSOR\HUVKDOOLQIRUPWKHHPSOR\HHRIWKHVHLQZULWLQJQRODWHU WKDQRQHPRQWKDIWHUWKHVWDUWFUHDWLRQ RIVXFKHPSOR\PHQWUHODWLRQVKLSWKLVVKDOODOVRDSSO\ZKHQWKHUH DUHFKDQJHVLQWKHHPSOR\HH VULJKWVDQGREOLJDWLRQV6XFKLQIRUPDWLRQPXVWLQFOXGHWKHIROORZLQJ
D WKHHPSOR\HH VQDPHDQGWKHHPSOR\HU VGHVLJQDWLRQDQGVHDWLIVXFKHPSOR\HULVDOHJDOHQWLW\RUWKH HPSOR\HU VQDPHDQGDGGUHVVLIVXFKHPSOR\HULVDQLQGLYLGXDODQDWXUDOSHUVRQ
E GHWDLOVRIWKHW\SHRIZRUNDQGWKHSODFHZKHUHLWZLOOEHFDUULHGRXW
F WKHDQQXDOOHDYHHQWLWOHPHQWRUWKHPDQQHULQZKLFKVXFKHQWLWOHPHQWZLOOEHGHWHUPLQHG G LQIRUPDWLRQDERXWQRWLFHSHULRGVUHODWLQJWRWHUPLQDWLRQRIWKHHPSOR\PHQWFRQWUDFW
H LQIRUPDWLRQ DERXW WKH ZDJH DQG UHPXQHUDWLRQ V\VWHP SD\PHQW GDWHV DQG WKH SODFH DQG PHWKRG RI SD\PHQW
I ZHHNO\ZRUNLQJWLPHDQGLWVVFKHGXOH
,I DQ HPSOR\HH LV WHPSRUDULO\ SRVWHG E\ KLV HPSOR\HU WR FDUU\ RXW ZRUN LQ DQRWKHU 6WDWH WKH HPSOR\HU VKDOO LQIRUP VXFK HPSOR\HH LQ DGYDQFH RI WKH SHULRG RI VXFK SRVWLQJ DQG RI WKH FXUUHQF\ LQ ZKLFKKLVZDJHZLOOEHSDLG
7KHLQIRUPDWLRQXQGHUVXEVHFWLRQV F G DQGI DQG FDQEHUHSODFHGE\DUHIHUHQFHWRWKH UHOHYDQWODERXUOHJLVODWLRQUHJXODWLRQV RUFROOHFWLYHEDUJDLQLQJDJUHHPHQWRUWRWKHLQWHUQDOUHJXODWLRQV LVVXHGE\WKHHPSOR\HU
$QHPSOR\HU VREOLJDWLRQWRLQIRUPKLVHPSOR\HHVLQZULWLQJRIWKHIXQGDPHQWDOULJKWVDQGREOLJDWLRQV HQVXLQJIURPDQHPSOR\PHQWUHODWLRQVKLSVKDOOQRWDSSO\WRHPSOR\PHQWUHODWLRQVKLSVDJUHHGIRUDIL[HG WHUPRIOHVVWKDQRQHPRQWK
&RPPHQFHPHQWRIDQ(PSOR\PHQW5HODWLRQVKLS 6HFWLRQ
$QHPSOR\PHQWUHODWLRQVKLSEDVHGRQDQHPSOR\PHQWFRQWUDFWLVHVWDEOLVKHGRQWKHGD\DJUHHGLQWKH HPSOR\PHQWFRQWUDFWDVWKHGD\ZKHQWKHHPSOR\HHZLOOFRPPHQFHZRUNLQJIRUWKHHPSOR\HU
,IWKHHPSOR\HHIDLOVWRVWDUWZRUNLQJRQWKHDJUHHGGD\IRUUHDVRQVRWKHUWKDQDQLPSHGLPHQWRULIKH IDLOV WR QRWLI\ WKH HPSOR\HU RI VXFK LPSHGLPHQW ZLWKLQ RQH ZHHN WKH HPSOR\HU PD\ FDQFHO WKH HPSOR\PHQWFRQWUDFW
6HFWLRQ 5HSHDOHG
6HFWLRQ
2EOLJDWLRQV(QVXLQJIURPDQ(PSOR\PHQW5HODWLRQVKLS
$VRIWKHGD\ZKHQDQHPSOR\PHQWUHODWLRQVKLSLVHVWDEOLVKHG
D WKHHPSOR\HUVKDOODVVLJQDQHPSOR\HHZRUNLQDFFRUGDQFHZLWKKLVHPSOR\PHQWFRQWUDFWSD\KLP ZDJHVIRUWKHZRUNSHUIRUPHGFUHDWHFRQGLWLRQVIRUWKHVXFFHVVIXOSHUIRUPDQFHRIKLVZRUNWDVNVDQG FRPSO\ ZLWK RWKHU ZRUNLQJ FRQGLWLRQV ODLG GRZQ LQ WKH VWDWXWRU\ SURYLVLRQV FROOHFWLYH EDUJDLQLQJ DJUHHPHQWRUHPSOR\PHQWFRQWUDFW
E WKHHPSOR\HHVKDOOSHUVRQDOO\SHUIRUPWKHZRUNGHVLJQDWHGLQKLVHPSOR\PHQWFRQWUDFWLQDFFRUGDQFH ZLWK KLV HPSOR\HU V LQVWUXFWLRQV GXULQJ WKH GHWHUPLQHG ZRUNLQJ WLPH DQG FRPSO\ ZLWK ZRUN GLVFLSOLQH
8SRQVWDUWLQJZRUNHDFKHPSOR\HHPXVWEHIXOO\DFTXDLQWHGZLWKWKHHPSOR\HU VFXUUHQWZRUNFRGH VHFWLRQ DV ZHOO DV ZLWK WKH ODERXU DQG RWKHU VWDWXWRU\ SURYLVLRQV IRU HQVXULQJ VDIHW\ DQG WKH SURWHFWLRQRIKHDOWKDWZRUNZKLFKKHPXVWDGKHUHWRZKLOHZRUNLQJ(DFKHPSOR\HHPXVWDOVREHIXOO\ DFTXDLQWHGZLWKWKHFROOHFWLYHEDUJDLQLQJDJUHHPHQWDQGLQWHUQDOUHJXODWLRQV
7KHHPSOR\HUVKDOOVXEPLWWRWKHFRPSHWHQWWUDGHXQLRQRUJDQL]DWLRQRUJDQERG\ ZLWKLQDSHULRGRI WLPHPXWXDOO\DJUHHGDUHSRUWRQWKHHVWDEOLVKPHQWRIQHZHPSOR\PHQWUHODWLRQVKLSV
'LYLVLRQ
0RGLILFDWLRQRIDQ(PSOR\PHQW5HODWLRQVKLS 6HFWLRQ
0RGLILFDWLRQRI$JUHHG:RUNLQJ&RQGLWLRQV
7KHWHUPVDJUHHGLQDQHPSOR\PHQWFRQWUDFWPD\EHPRGLILHGRQO\LIWKHHPSOR\HUDQGWKHHPSOR\HH DJUHH RQ WKHLU PRGLILFDWLRQ ,I WKH HPSOR\PHQW FRQWUDFW ZDV FRQFOXGHG LQ ZULWLQJ WKH HPSOR\HU PXVW PRGLI\WKHFRQWUDFWLQZULWLQJDVZHOO
7KHHPSOR\HHVKDOORQO\SHUIRUPZRUNDMRE RIDGLIIHUHQWNLQGW\SH RULQDGLIIHUHQWSODFHIURP WKDWDJUHHGLQWKHHPSOR\PHQWFRQWUDFWDVDQH[FHSWLRQLQWKHFDVHVVWLSXODWHGLQVHFWLRQVDQG
6HFWLRQ
7UDQVIHUWR2WKHU:RUN
$QHPSOR\HULVUHTXLUHGWRWUDQVIHUDQHPSOR\HHWRRWKHUZRUN
D LI DFFRUGLQJ WR D PHGLFDO RSLQLRQ RI D PHGLFDO H[SHUW RU DFFRUGLQJ WR D UXOLQJ RI WKH VWDWH KHDOWK DGPLQLVWUDWLRQRUVRFLDOVHFXULW\DXWKRULW\KLVVWDWHRIKHDOWKLVVXFKWKDWKHFDQQRORQJHUFRQWLQXHWR SHUIRUP KLV FXUUHQW ZRUN LQ WKH ORQJWHUP RU WKDW KH FDQQRW EH SHUPLWWHG WR SHUIRUP VXFK ZRUN EHFDXVHKHLVVXIIHULQJIURPRUWKUHDWHQHGE\DQRFFXSDWLRQDOGLVHDVHRUDFFRUGLQJWRDUXOLQJRIWKH FRPSHWHQWDJHQF\FRQFHUQHGZLWKWKHSURWHFWLRQRISXEOLFKHDOWKKHKDVEHHQVXEMHFWHGWRDPD[LPXP
SHUPLVVLEOHOHYHORIH[SRVXUH1RWH DWWKHZRUNSODFH
E LIDSUHJQDQWZRPDQRUDZRPDQZKRLVEUHDVWIHHGLQJRUWKHPRWKHURIDFKLOGXQGHUQLQHPRQWKVRI DJH LV HQJDJHG LQ ZRUN ZKLFK VKH PD\ QRW SHUIRUP RU ZKLFK DFFRUGLQJ WR D PHGLFDO RSLQLRQ HQGDQJHUVKHUSUHJQDQF\RUKHUPRWKHU VUROH
F LI DFFRUGLQJ WR D PHGLFDO RSLQLRQ RU D UXOLQJ RI WKH VWDWH KHDOWK DGPLQLVWUDWLRQ DXWKRULW\ WKLV LV QHFHVVDU\WRSURWHFWWKHKHDOWKRIRWKHUVIURPLQIHFWLRXVGLVHDVHV
G LIWKLVLVQHFHVVDU\DFFRUGLQJWRWKHILQDOHQIRUFHDEOH GHFLVLRQUXOLQJ RIDFRXUW
H LIDQHPSOR\HHZKRZRUNVDWQLJKWLVLQWKHRSLQLRQRIDPHGLFDOH[SHUWXQILWIRUVXFKZRUNI
LIWKLVLVUHTXHVWHGE\DSUHJQDQWZRPDQRUDZRPDQZKRLVEUHDVWIHHGLQJRUWKHPRWKHURIDFKLOGXQGHU QLQHPRQWKVRIDJHZKRZRUNVDWQLJKW 7KHHPSOR\HUPD\WUDQVIHUDQHPSOR\HHWRRWKHUZRUN
D LI KH KDV JLYHQ WKH HPSOR\HH QRWLFH RI WHUPLQDWLRQ RI KLV HPSOR\PHQW RQ RQH RI WKH JURXQGV SXUVXDQWWRVHFWLRQ H RUI
E LIFULPLQDOSURFHHGLQJVKDYHEHHQLQLWLDWHGDJDLQVWVXFKHPSOR\HHRQVXVSLFLRQWKDWKHKDVFRPPLWWHG DQ LQWHQWLRQDO FULPLQDO DFW GXULQJ KLV SHUIRUPDQFH RI ZRUN RU GLUHFWO\UHODWHG WDVNV ZKLFK KDV UHVXOWHGLQGDPDJHWRWKHHPSOR\HU VSURSHUW\VXFKWUDQVIHUODVWLQJIRUWKHSHULRGXQWLOWKHFULPLQDO SURFHHGLQJVKDYHEHHQIXOO\DQGILQDOO\FRQFOXGHG
F LI WKH HPSOR\HH KDV WHPSRUDULO\ ORVW WKH SUHUHTXLVLWHV ODLG GRZQ LQ VWDWXWRU\ SURYLVLRQV IRU SHUIRUPDQFHRIWKHDJUHHGZRUNEXWLQVXFKFDVHIRUDWRWDORIQRPRUHWKDQZRUNLQJGD\VLQWKH FDOHQGDU\HDU
,ILWLVQRWSRVVLEOHWRDWWDLQWKHSXUSRVHRIWKHWUDQVIHUXQGHUWKHSUHFHGLQJVXEVHFWLRQE\WUDQVIHUULQJ WKH HPSOR\HH ZLWKLQ WKH IUDPHZRUN RI WKH HPSOR\PHQW FRQWUDFW WKH HPSOR\HU PD\ LQ VXFK FDVHV DOVR WUDQVIHUKLPWRZRUNRIDGLIIHUHQWW\SHIURPWKDWDJUHHGLQWKHHPSOR\PHQWFRQWUDFWHYHQLIWKHHPSOR\HH GRHVQRWDJUHHWRLW
'XULQJ D SHULRG ZKHQ LW LV LQHYLWDEOH WKH HPSOR\HU PD\ WUDQVIHU DQ HPSOR\HH HYHQ ZLWKRXW KLV FRQVHQWWRGRRWKHUZRUNWKDQWKDWDJUHHG D LIWKHHPSOR\HHFDQQRWGRKLVXVXDO ZRUNEHFDXVHRIDQLQWHUUXSWLRQRIZRUNGXHWRDEUHDNGRZQRU VLPLODUUHDVRQLGOHWLPHVHFWLRQ RUGXHWRXQIDYRXUDEOHZHDWKHU
E LI WKLV LV QHFHVVDU\ WR DYHUW D QDWXUDO GLVDVWHU RU VRPH RWKHU LPPLQHQW DFFLGHQW RU WR PLWLJDWH LWV LPPHGLDWHFRQVHTXHQFHV
:KHQ WUDQVIHUULQJ DQ HPSOR\HH WR RWKHU ZRUN WKH HPSOR\HU VKDOO FRQVLGHU ZKHWKHU WKH ZRUN LV VXLWDEOHIRUWKHHPSOR\HHWDNLQJLQWRDFFRXQWWKHVWDWHRIKLVKHDOWKKLVDELOLWLHVDQGDOVRZKHUHSRVVLEOH KLVVNLOOVTXDOLILFDWLRQV
7KHHPSOR\HUVKDOOLQDGYDQFHGLVFXVVZLWKWKHHPSOR\HHWKHUHDVRQIRUKLVWUDQVIHUWRRWKHUZRUNDQG WKHSHULRGIRUZKLFKVXFKWUDQVIHULVWRODVWLIDQHPSOR\PHQWFRQWUDFWZDVFRQFOXGHGLQZULWLQJDQGDVD UHVXOW RI WKH HPSOR\HH V WUDQVIHU LW LV PRGLILHG WKH HPSOR\HU VKDOO SURYLGH WKH HPSOR\HH ZLWK ZULWWHQ QRWLILFDWLRQ RI WKH JURXQGV IRU KLV WUDQVIHU WR RWKHU ZRUN DQG RI WKH SHULRG RI LWV GXUDWLRQ ZLWK WKH H[FHSWLRQRIWKHFDVHVSXUVXDQWWRVXEVHFWLRQ F RU
6HFWLRQ
%XVLQHVV7ULSVDQG7UDQVIHUVWR$QRWKHU3ODFH
³$EXVLQHVVWULS´VKDOOPHDQDOLPLWHGSHULRGRIWLPHZKHQDQHPSOR\HHLVZRUNLQJDZD\IURPKLV
DJUHHGZRUNSODFHRQWKHLQVWUXFWLRQVRIKLVHPSOR\HU$QHPSOR\HHFDQEHLQVWUXFWHGE\KLVHPSOR\HUWR XQGHUWDNH D EXVLQHVV WULS IRU WKH QHFHVVDU\ SHULRG LI WKLV LV DJUHHG LQ KLV HPSOR\PHQW FRQWUDFW $Q HPSOR\HH ZKR LV RQ D EXVLQHVV WULS VKDOO SHUIRUP KLV ZRUN DFFRUGLQJ WR WKH LQVWUXFWLRQV JLYHQ E\ WKH PDQDJHUZKRGHFLGHGWRVHQGKLPRQVXFKEXVLQHVVWULS
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
$QHPSOR\HHPD\RQO\EHWUDQVIHUUHGWRZRUNLQDZRUNSODFHSODFH RWKHUWKDQWKDWDJUHHGLQWKH HPSOR\PHQW FRQWUDFW ZLWK KLV FRQVHQW DQG ZLWKLQ WKH IUDPHZRUN RI HPSOR\HU V HQWHUSULVH LI WKLV LV QHFHVVDU\ EHFDXVH RI RSHUDWLRQDO UHTXLUHPHQWV 7KH FRPSHWHQW PDQDJHU DW WKH HVWDEOLVKPHQW RUJDQL]DWLRQDO GLYLVLRQ WR ZKLFK WKH HPSOR\HH LV WUDQVIHUUHG VKDOO DVVLJQ ZRUN WR WKH WUDQVIHUUHG HPSOR\HHRUJDQL]HPDQDJHDQGVXSHUYLVHKLVZRUNDQGJLYHKLPLQVWUXFWLRQVIRUWKDWSXUSRVH
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
6HFWLRQ
5HDVVLJQPHQWRIDQ(PSOR\HHWRKLV2ULJLQDO-RE
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
6HFWLRQ
7UDQVIHUVDWWKH5HTXHVWRIDQ(PSOR\HH
,I DQ HPSOR\HH DVNV WR EH DVVLJQHG WUDQVIHUUHG WR RWKHU ZRUN RU WR DQRWKHU ZRUNSODFH RU WR EH WUDQVIHUUHGWRDGLIIHUHQWZRUNSODFHEHFDXVHLQWKHRSLQLRQRIDPHGLFDOH[SHUWKHLVQRWILWWRFRQWLQXH SHUIRUPDQFH RI KLV SUHVHQW MRE RU WR FRQWLQXH ZRUNLQJ DW KLV SUHVHQW ZRUNSODFH RU IRU RWKHU VHULRXV UHDVRQVWKHHPSOR\HUVKDOOFRPSO\ZLWKKLVUHTXHVWDVVRRQDVWKHHPSOR\HU VRSHUDWLRQDOSRVVLELOLWLHVVR SHUPLW$WWKHVDPHWLPHWKHHPSOR\HUPXVWVHHWRLWWKDWERWKWKHMREDQGWKHZRUNSODFHWRZKLFKVXFK HPSOR\HHLVWREHWUDQVIHUUHGDUHVXLWDEOHIRUKLP
6HFWLRQ
7UDGH8QLRQ3DUWLFLSDWLRQLQ-RE7UDQVIHUV
,ISXUVXDQWWRVHFWLRQDQHPSOR\HUH[FHSWLRQDOO\WUDQVIHUVDQHPSOR\HHWRZRUNDMRE RWKHUWKDQ
WKDWVWDWHGLQKLVHPSOR\PHQWFRQWUDFWDQGWKHHPSOR\HHGRHVQRWDJUHHWRWKLVWKHHPSOR\HUPD\WUDQVIHU KLPRQO\DIWHUFRQVXOWLQJWKHFRPSHWHQWWUDGHXQLRQRUJDQL]DWLRQERG\RUJDQ RQWKHPDWWHU7KLVVKDOO QRWEHQHFHVVDU\LIWKHWRWDOSHULRGRIWKHWUDQVIHUDVVLJQPHQW LVQRWWRH[FHHGZRUNLQJGD\VLQRQH FDOHQGDU\HDU
'LYLVLRQ
7HUPLQDWLRQRIDQ(PSOR\PHQW5HODWLRQVKLS 6HFWLRQ
$QHPSOR\PHQWUHODWLRQVKLSPD\EHVHYHUHGE\ D DJUHHPHQW
E QRWLFHRIWHUPLQDWLRQ
F LPPHGLDWHFDQFHOODWLRQRU
G WHUPLQDWLRQGXULQJWKHWULDOSUREDWLRQDU\ SHULRG
$QHPSOR\PHQWUHODWLRQVKLSDJUHHGIRUDIL[HGWHUPWHUPLQDWHVXSRQH[SLU\RIWKHDJUHHGSHULRG
,ILWKDVQRWDOUHDG\WHUPLQDWHGLQVRPHRWKHUPDQQHUWKHHPSOR\PHQWUHODWLRQVKLSRIDIRUHLJQHURUD VWDWHOHVVSHUVRQVKDOOWHUPLQDWH D RQ WKH GD\ RQ ZKLFK KLV VWD\ UHVLGHQFH LQ WKH &]HFK 5HSXEOLF LV WR HQG DFFRUGLQJ WR D ILQDO HQIRUFHDEOH GHFLVLRQFDQFHOOLQJKLVUHVLGHQFHSHUPLW
E RQ WKH GD\ ZKHQ D GHFLVLRQ UXOLQJ WR H[SHO VXFK SHUVRQ IURP WKH &]HFK 5HSXEOLF DFTXLUHV OHJDO IRUFH
$QHPSOR\PHQWUHODWLRQVKLSWHUPLQDWHVXSRQWKHGHDWKRIDQHPSOR\HH
6HFWLRQ
$JUHHPHQW
,IDQHPSOR\HUDQGHPSOR\HHDJUHHWRVHYHUDQHPSOR\PHQWUHODWLRQVKLSLWZLOOHQGRQWKHDJUHHGGD\
$QDJUHHPHQWEHWZHHQWKHHPSOR\HUDQGKLVHPSOR\HHWRVHYHUWKHHPSOR\PHQWUHODWLRQVKLSPXVWEH LQZULWLQJ7KHUHDVRQVZK\WKHHPSOR\PHQWUHODWLRQVKLSLVEHLQJVHYHUHGPXVWEHVWDWHGLQWKHDJUHHPHQW LIWKHHPSOR\HHVRUHTXHVWV
7KH HPSOR\HU VKDOO SURYLGH WKH HPSOR\HH ZLWK RQH FRS\ RI WKH DJUHHPHQW RQ VHYHUDQFH RI WKH HPSOR\PHQWUHODWLRQVKLS
6HFWLRQ
1RWLFHRI7HUPLQDWLRQ
%RWK DQ HPSOR\HU DQG KLV HPSOR\HH PD\ VHYHU WKH HPSOR\PHQW UHODWLRQVKLS E\ JLYLQJ QRWLFH RI WHUPLQDWLRQ7KHQRWLFHPXVWEHLQZULWLQJDQGGHOLYHUHGWRWKHRWKHUSDUW\RUHOVHLWLVYRLG
$QHPSOR\HUPD\JLYHQRWLFHRIWHUPLQDWLRQWRKLVHPSOR\HHRQO\IRUWKHJURXQGVH[SOLFLWO\VWDWHGLQ VHFWLRQ WKH JURXQGV IRU WHUPLQDWLRQ PXVW EH VSHFLILHG LQ VXFK D ZD\ WKDW LW LVQRWEHSRVVLEOHWR
FRQIXVHWKHPZLWKRWKHUJURXQGVRWKHUZLVHWKHQRWLFHLVYRLG7KHJURXQGVIRUWHUPLQDWLRQPD\QRWEH VXEVHTXHQWO\FKDQJHG
$ QRWLFH GHOLYHUHG WR VHUYHG RQ WKH RWKHU SDUW\ PD\ RQO\ EH ZLWKGUDZQ ZLWK WKH RWKHU SDUW\ V FRQVHQWWKHZLWKGUDZDOUHYRFDWLRQ DQGWKHFRQVHQWWRZLWKGUDZDOPXVWEHLQZULWLQJ
6HFWLRQ
1RWLFH3HULRGV
,IDQRWLFHRIWHUPLQDWLRQLVJLYHQWKHHPSOR\PHQWUHODWLRQVKLSZLOOHQGXSRQH[SLU\RIWKHQRWLFH SHULRG 7KH QRWLFH SHULRG LV WKH VDPH IRU HPSOR\HUV DQG HPSOR\HHV DQG VKDOO EH WZR PRQWKV XQOHVV IXUWKHU SURYLGHG IRU RWKHUZLVH ,Q WKH FDVH RI D QRWLFH RI WHUPLQDWLRQ XQGHU VHFWLRQ D WR F WKH SHULRGRIQRWLFHVKDOOEHWKUHHPRQWKV
$ QRWLFH SHULRG VKDOO FRPPHQFH RQ WKH ILUVW GD\ RI WKH FDOHQGDU PRQWK IROORZLQJ GHOLYHU\ RI WKH QRWLFH DQG HQG XSRQ H[SLU\ RI WKH ODVW GD\ RI WKH UHOHYDQW FDOHQGDU PRQWK DSDUW IURP WKH H[HPSWLRQV HQVXLQJIURPVHFWLRQV E DQGE
1RWLFH*LYHQE\DQ(PSOR\HU 6HFWLRQ
$QHPSOR\HUPD\JLYHQRWLFHWRDQHPSOR\HHRQO\IRUWKHIROORZLQJJURXQGV
D LIWKHHPSOR\HU VHQWHUSULVHRUXQGHUWDNLQJ RUSDUWRILWVKXWVGRZQ
E LIWKHHPSOR\HU VHQWHUSULVHRUXQGHUWDNLQJ RUSDUWRILWUHORFDWHV
F LIWKHHPSOR\HHLVWREHPDGHUHGXQGDQWEHFDXVHRIDGHFLVLRQE\WKHHPSOR\HURULWVFRPSHWHQWRUJDQ WR FKDQJH WKH HQWHUSULVH V DFWLYLWLHV RU LWV WHFKQRORJ\ WR UHGXFH WKH QXPEHU RI HPSOR\HHV IRU WKH SXUSRVHRILQFUHDVLQJODERXUHIILFLHQF\RUWRPDNHRWKHURUJDQL]DWLRQDOFKDQJHV
G LIWKHVWDWHRIWKHHPSOR\HH VKHDOWKLVVXFKDFFRUGLQJWRWKHRSLQLRQRIDPHGLFDOH[SHUWRUDUXOLQJRI WKHVWDWHKHDOWKDGPLQLVWUDWLRQDXWKRULW\RUVRFLDOVHFXULW\DXWKRULW\WKDWKHLVQRORQJHUDEOHLQWKH ORQJWHUPWRSHUIRUPKLVH[LVWLQJZRUNRUKHLVQRWSHUPLWWHGWRGRWKHZRUNEHFDXVHKHVXIIHUVIURP DQRFFXSDWLRQDOGLVHDVHRUIDFHVWKHGDQJHURIVXFKGLVHDVHRUDFFRUGLQJWRDUXOLQJRIWKHFRPSHWHQW SXEOLFKHDOWKSURWHFWLRQDXWKRULW\KHKDVEHHQVXEMHFWHGDWWKHZRUNSODFHWRWKHPD[LPXPSHUPLVVLEOH OHYHORIH[SRVXUH
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
I LI WKHUH H[LVW JURXQGV XSRQ ZKLFK WKH HPSOR\HU PLJKW LPPHGLDWHO\ WHUPLQDWH WKH HPSOR\PHQW UHODWLRQVKLSRUGXHWRVHULRXVEUHDFKHVRIZRUNGLVFLSOLQHIRUFRQVLVWHQWEXWOHVVVHULRXVEUHDFKHVRI ZRUNGLVFLSOLQHWKHHPSOR\HHPD\EHJLYHQQRWLFHLIGXULQJWKHSUHYLRXVVL[PRQWKVLQFRQQHFWLRQ ZLWKVXFKEUHDFKHVKHZDVZDUQHGLQZULWLQJRIWKHSRVVLELOLW\RIEHLQJJLYHQQRWLFHRIWHUPLQDWLRQ
7KH HPSOR\HU PD\ RQO\ JLYH QRWLFH RI WHUPLQDWLRQ WR DQ HPSOR\HH LQ FDVHV ZKLFK GR QRW LQYROYH EUHDFKHV RI ZRUN GLVFLSOLQH RU JURXQGV IRU ZKLFK WKH HPSOR\PHQW UHODWLRQVKLS FRXOG EH LPPHGLDWHO\ WHUPLQDWHGLI
D LWLVQRWSRVVLEOHIRUWKHHPSOR\HUWRHPSOR\KLPIXUWKHULQWKHSODFHZKLFKZDVDJUHHGDVKLVSODFHRI ZRUNRULQWKHHPSOR\HH VSODFHRIUHVLGHQFHHYHQDIWHUDSULRUSHULRGRIUHWUDLQLQJ
E WKHHPSOR\HHLVQRWZLOOLQJWREHWUDQVIHUUHGWRRWKHUZRUNZKLFKLVVXLWDEOHIRUKLPDQGZKLFKWKH HPSOR\HU RIIHUHG KLP LQ WKH SODFH DJUHHG DV KLV SODFH RI ZRUN RU LQ WKH SODFH RI WKH HPSOR\HH V UHVLGHQWLDO KRPH DGGUHVV DQG LI WKH HPSOR\HH LV QRW UHDG\ WR XQGHUWDNH UHWUDLQLQJ IRU VXFK RWKHU ZRUN
)RU D EUHDFK RI ZRUN GLVFLSOLQH RU RQ JURXQGV IRU ZKLFK WKH HPSOR\PHQW UHODWLRQVKLS PD\ EH LPPHGLDWHO\WHUPLQDWHGWKHHPSOR\HUPD\RQO\JLYHWKHHPSOR\HHQRWLFHGXULQJDSHULRGRIWZRPRQWKV IURP WKH GD\ RQ ZKLFK KH OHDUQHG RI WKH JURXQGV IRU WHUPLQDWLRQ DQG LI WKH HPSOR\HH EUHDFKHV ZRUN GLVFLSOLQHLQDIRUHLJQFRXQWU\ZLWKLQWZRPRQWKVRIKLVUHWXUQIURPDEURDGEXWLQDOOFDVHVQRODWHUWKDQ RQH\HDUDIWHUWKHGD\RQZKLFKWKHUHDVRQIRUJLYLQJQRWLFHGLVPLVVDO DURVH
,I GXULQJ WKH FRXUVH RI WKH WZRPRQWK SHULRG SXUVXDQW WR WKH SUHFHGLQJ VXEVHFWLRQ DQ HPSOR\HH V FRQGXFW ZKLFK FDQ EH UHJDUGHG DV D EUHDFK RI ZRUN GLVFLSOLQH EHFRPHV D VXEMHFW RI LQYHVWLJDWLRQ E\ DQRWKHURUJDQWKHHPSOR\HUPD\JLYHQRWLFHZLWKLQWZRPRQWKVRIWKHGD\ZKHQKHOHDUQHGRIWKHUHVXOWV RIVXFKLQYHVWLJDWLRQ,IDSSURYDOE\WKHFRPSHWHQWVWDWHDGPLQLVWUDWLYHDXWKRULW\LVUHTXLUHGEHIRUHQRWLFH FDQEHJLYHQWKHWLPHIURPWKHGD\ZKHQWKHDSSOLFDWLRQIRUVXFKDSSURYDOZDVVXEPLWWHGXQWLOWKHGD\ ZKHQ WKH GHFLVLRQ RI WKH VWDWH DGPLQLVWUDWLYH DXWKRULW\ EHFRPHV ILQDO OHJDOO\ HIIHFWLYH VKDOO QRW EH FRXQWHGDVSDUWRIWKLVSHULRG
6HFWLRQ
,IDQHPSOR\HHLVJLYHQQRWLFHIRUDQ\RIWKHJURXQGVSXUVXDQWWRVHFWLRQ D WRG WKHHPSOR\HU VKDOO LQFRRSHUDWLRQZLWKWKHFRPSHWHQWVWDWHDGPLQLVWUDWLYHDXWKRULW\DFWLYHO\DVVLVWKLPLQREWDLQLQJ RWKHUVXLWDEOHHPSOR\PHQWDQRWKHUVXLWDEOHMRE
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
7KHHPSOR\HULVQRWREOLJHGWRJLYHDFWLYHDVVLVWDQFHWRDQHPSOR\HHLQREWDLQLQJDQRWKHUVXLWDEOHMRE RUWRHQVXUHWKDWKHREWDLQVLWLIWKHHPSOR\HHLVQRWZLOOLQJWRWUDQVIHUWRDQRWKHUMREZKLFKLVVXLWDEOHIRU KLPDQGZKLFKWKHHPSOR\HURIIHUHGKLPEHIRUHKHJDYHKLPQRWLFH7KHHPSOR\HUVKDOOFHDVHWREHXQGHU WKLVREOLJDWLRQLIIRUQRJRRGUHDVRQWKHHPSOR\HHUHIXVHVDQRWKHUVXLWDEOHMREZKLFKKHFRXOGKDYHWDNHQ XS
3URKLELWLRQRI1RWLFH 6HFWLRQ
$QHPSOR\HUPD\QRWJLYHQRWLFHGXULQJDSURWHFWLYHSHULRGQDPHO\
D GXULQJDSHULRGZKHQLWLVUHFRJQL]HGWKDWWKHHPSOR\HHLVWHPSRUDULO\XQILWWRZRUNGXHWRLOOQHVVRU LQMXU\XQOHVVKHLQWHQWLRQDOO\EURXJKWRQWKLVLQFDSDFLW\RULWZDVFDXVHGE\GUXQNHQQHVVRUGXULQJD SHULRGZKHQLWZDVSURSRVHGWKDWKHVKRXOGUHFHLYHWUHDWPHQWLQDPHGLFDOKHDOWKFDUH HVWDEOLVKPHQW RUDVSDXQWLOVXFKWUHDWPHQWLVILQLVKHGLIKHFRQWUDFWVWXEHUFXORVLVWKLVSURWHFWLYHSHULRGVKDOOEH H[WHQGHGIRUVL[PRQWKVDIWHUKLVGLVFKDUJHIURPWUHDWPHQWDWDKHDOWKFDUHHVWDEOLVKPHQW
E LIKHLVFDOOHGXSIRUGXW\LQWKHDUPHGIRUFHVIURPWKHGD\ZKHQKHUHFHLYHVWKHFDOOXSRUGHURU ZKHQDQRWLFHFRQWDLQLQJDPDVVFDOOXSRUGHULVSXEOLFO\SRVWHGXQWLOWZRZHHNVDIWHUKLVGLVFKDUJH IURPVXFKGXW\WKLVSURYLVLRQVLPLODUO\DSSOLHVLIKHSHUIRUPVDOWHUQDWLYH FLYLOLDQVHUYLFH1RWH
F GXULQJ D SHULRG ZKHQ WKH HPSOR\HH KDV EHHQ JLYHQ ORQJWHUP XQSDLG WLPH RII LQ RUGHU WR SHUIRUP SXEOLFRIILFH
G GXULQJDSHULRGZKHQDIHPDOHHPSOR\HHLVSUHJQDQWRURQPDWHUQLW\OHDYHRUZKHQDVLQJOHIHPDOHRU PDOHHPSOR\HHLVEULQJLQJXSDWOHDVWRQHFKLOGXQGHUWKUHH\HDUVRIDJH
H GXULQJDSHULRGZKHQDQLJKWZRUNHULVUHFRJQL]HGRQWKHEDVLVRIDPHGLFDOH[SHUW VRSLQLRQDVEHLQJ WHPSRUDULO\XQILWIRUQLJKWZRUN
,IDQHPSOR\HHLVJLYHQQRWLFHSULRUWRWKHVWDUWRIDSURWHFWLYHSHULRGVRWKDWWKHQRWLFHSHULRGZRXOG H[SLUH GXULQJ VXFK SHULRG WKH SURWHFWLYH SHULRG VKDOO QRW EH FRXQWHG DV SDUW RI WKH QRWLFH SHULRG WKH HPSOR\PHQW UHODWLRQVKLS VKDOO WHUPLQDWH RQO\ DIWHU WKH HQG RI WKH SURWHFWLYH SHULRG XSRQ H[SLU\ RI WKH UHPDLQLQJSDUWRIWKHQRWLFHSHULRGXQOHVVWKHHPSOR\HHVWDWHVWKDWKHZLOOQRWLQVLVWXSRQSURORQJDWLRQRI KLVHPSOR\PHQWUHODWLRQVKLS
6HFWLRQ
,WVKDOOQRWEHSURKLELWHGWRJLYHQRWLFHLIVXFKQRWLFHLVJLYHQWRDQHPSOR\HH
D GXHWRRUJDQL]DWLRQDOFKDQJHVDVVWDWHGLQVHFWLRQ D DQGE
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
F IRURWKHUEUHDFKHVRIZRUNGLVFLSOLQH>VHFWLRQ I @H[FHSWLQWKHFDVHRIDSUHJQDQWHPSOR\HHD IHPDOHHPSOR\HHRUDPDOHHPSOR\HHZKRLVEULQJLQJXSDFKLOGXQGHUWKUHH\HDUVRIDJH
6HFWLRQ
$QHPSOR\HUPD\RQO\JLYHQRWLFHWRDGLVDEOHGHPSOR\HHZLWKWKHSULRUFRQVHQWRIWKHFRPSHWHQW VWDWH DGPLQLVWUDWLYH DXWKRULW\ RWKHUZLVH WKH QRWLFH LV YRLG VXFK FRQVHQW LV QRWUHTXLUHGZKHQQRWLFHLV JLYHQWRDQHPSOR\HHRYHU\HDUVRIDJHRUIRUWKHJURXQGVSXUVXDQWWRVHFWLRQ D E RUI
6HFWLRQ
1RWLFH*LYHQE\DQ(PSOR\HH
$QHPSOR\HHPD\JLYHQRWLFHWRKLVHPSOR\HUIRUDQ\JURXQGZKDWVRHYHURUZLWKRXWVWDWLQJDJURXQG 6HFWLRQ
/DUJH6FDOH'LVPLVVDOV&ROOHFWLYH5HGXQGDQFLHV
$ODUJHVFDOHGLVPLVVDORUFROOHFWLYHUHGXQGDQFLHVLQ&]HFK³KURPDGQpSURSRXãW Qt´ VKDOOPHDQWKH WHUPLQDWLRQRIHPSOR\PHQWUHODWLRQVKLSVE\DQHPSOR\HULQDSHULRGRIFDOHQGDUGD\VRQWKHEDVLVRI
QRWLFHJLYHQSXUVXDQWWRVHFWLRQ D WRF WRDPLQLPXPRI
D WHQHPSOR\HHVLQWKHFDVHRIDQHPSOR\HUHPSOR\LQJIURPWRHPSOR\HHVRU
E RIHPSOR\HHVLQWKHFDVHRIDQHPSOR\HUHPSOR\LQJIURPWRHPSOR\HHVRU
F HPSOR\HHVLQWKHFDVHRIDQHPSOR\HUHPSOR\LQJPRUHWKDQHPSOR\HHV
,IWKHHPSOR\PHQWUHODWLRQVKLSVRIDWOHDVWILYHHPSOR\HHVDUHWHUPLQDWHGXQGHUWKHFRQGLWLRQVODLGGRZQ LQWKHILUVWVHQWHQFHWKHWRWDOQXPEHURIHPSOR\HHVSXUVXDQWWROHWWHUVD WRF VKDOODOVRLQFOXGHWKRVH HPSOR\HHV ZLWK ZKRP WKH HPSOR\HU VHYHUHG WKHLU HPSOR\PHQW UHODWLRQVKLSV E\ DJUHHPHQW RQ WKH VDPH JURXQGVLQWKHVDPHSHULRG
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
7KHHPSOR\HUVKDOOVLPXOWDQHRXVO\QRWLI\WKHFRPSHWHQWODERXURIILFHLQZULWLQJRIPHDVXUHVSXUVXDQW WRVXEVHFWLRQ LQSDUWLFXODUWKHJURXQGVIRUWKHPWKHWRWDOQXPEHURIHPSOR\HHVDQGWKHQXPEHUDQG FRPSRVLWLRQ RI HPSOR\HHV ZKR ZLOO EH DIIHFWHG E\ VXFK PHDVXUHV WKH SHULRG GXULQJ ZKLFK ODUJHVFDOH UHGXQGDQFLHVZLOORFFXUWKHFULWHULDSURSRVHGIRUVHOHFWLQJHPSOR\HHVZKRDUHWREHPDGHUHGXQGDQWDQG WKH GDWH ZKHQ FRQVXOWDWLRQ QHJRWLDWLRQV ZLWK WKH FRPSHWHQW WUDGH XQLRQ RUJDQL]DWLRQ ERG\ RUZRUNV FRXQFLOZLOOEHJLQ7KHHPSOR\HUVKDOOGHOLYHURQHFRS\RIWKHZULWWHQUHSRUWWRWKHFRPSHWHQWWUDGHXQLRQ RUJDQL]DWLRQRUWKHZRUNVFRXQFLO
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
,IQRWUDGHXQLRQRUJDQL]DWLRQERG\ RUZRUNVFRXQFLOKDVEHHQIRUPHGDWWKHHPSOR\HU VHQWHUSULVH XQGHUWDNLQJ RU LI LW LV QRW IXQFWLRQLQJ WKH HPSOR\HU VKDOO KDYH WR IXOILO WKH REOLJDWLRQV SXUVXDQW WR VXEVHFWLRQV WR LQUHODWLRQWRHYHU\HPSOR\HHDIIHFWHGE\VXFKODUJHVFDOHFROOHFWLYH UHGXQGDQF\
7KHHPSOR\PHQWUHODWLRQVKLSRIDQHPSOR\HHZKRLVDIIHFWHGE\DODUJHVFDOHUHGXQGDQF\VKDOOEH WHUPLQDWHG E\ QRWLFH QR HDUOLHU WKDQ GD\V DIWHU WKH GD\ ZKHQ WKH HPSOR\HU V ZULWWHQ UHSRUW XQGHU VXEVHFWLRQ LVGHOLYHUHGWRWKHFRPSHWHQWODERXURIILFHXQOHVVWKHHPSOR\HHFRQFHUQHGGHFODUHVWKDWKH GRHV QRW LQVLVW RQ REVHUYDQFH RI VXFK WLPHOLPLW 7KLV VKDOO QRW DSSO\ LI D EDQNUXSWF\ RUGHU KDV EHHQ DGMXGJHGDJDLQVWWKHHPSOR\HU VHQWHUSULVHXQGHUWDNLQJ RULIFRPSRVLWLRQSURFHHGLQJVFRQFHUQLQJWKH HPSOR\HU VHQWHUSULVH KDYHEHHQDIILUPHG
7KHHPSOR\HUVKDOOLQIRUPKLVHPSOR\HHVRIWKHGD\ZKHQKLVZULWWHQUHSRUWSXUVXDQWWRVXEVHFWLRQ ZDVGHOLYHUHGWRWKHODERXURIILFH
,PPHGLDWH7HUPLQDWLRQ 6HFWLRQ
$Q HPSOR\HU PD\ LPPHGLDWHO\ WHUPLQDWH WKH HPSOR\PHQW UHODWLRQVKLS ZLWK DQ HPSOR\HH RQO\ H[FHSWLRQDOO\QDPHO\LQWKHIROORZLQJFDVHV D LIWKHHPSOR\HHLVVHQWHQFHGIRUDQLQWHQWLRQDOFULPLQDODFWWRXQFRQGLWLRQDOLPSULVRQPHQWRIDWOHDVW RQH\HDUDQGVXFKVHQWHQFHLVILQDORULIKHLVVHQWHQFHGWRXQFRQGLWLRQDOLPSULVRQPHQWRIQROHVVWKDQ VL[PRQWKVIRUDQLQWHQWLRQDOFULPLQDODFWFRPPLWWHGZKLOHSHUIRUPLQJKLVZRUNLQJWDVNVRULQGLUHFW FRQQHFWLRQWKHUHZLWKDQGVXFKVHQWHQFHLVILQDO
E LIWKHHPSOR\HHEUHDFKHVZRUNGLVFLSOLQHLQDQHVSHFLDOO\JURVVPDQQHU
7KH HPSOR\HU PD\ RQO\ LPPHGLDWHO\ WHUPLQDWH DQ HPSOR\PHQW UHODWLRQVKLS ZLWKLQ DSHULRGRIRQH PRQWKIURPWKHGD\ZKHQKHOHDUQHGRIWKHJURXQGVIRULPPHGLDWHWHUPLQDWLRQDQGDWWKHODWHVWZLWKLQRQH \HDU RIWKHGD\RQZKLFKWKRVHJURXQGVRFFXUUHGDURVH 7KHSURYLVLRQVRIVHFWLRQ DQG VKDOO DSSO\PXWDWLVPXWDQGLVWRWKHFRPPHQFHPHQWDQGUXQQLQJRIDPRQWKO\SHULRG
7KHHPSOR\HUPD\QRWLPPHGLDWHO\WHUPLQDWHDQHPSOR\PHQWUHODWLRQVKLSZLWKDQHPSOR\HHZKRLV SUHJQDQWRUDIHPDOHRUDPDOHHPSOR\HHZKRLVEULQJLQJXSDFKLOGXQGHUWKUHH\HDUVRIDJHKRZHYHUIRU WKH JURXQGV VWDWHG LQ VXEVHFWLRQ WKH HPSOR\HU PD\ VHYHU WKH HPSOR\PHQW UHODWLRQVKLS ZLWK VXFK HPSOR\HHE\JLYLQJQRWLFHH[FHSWLQWKHFDVHRIDIHPDOHHPSOR\HHRQPDWHUQLW\OHDYH>VHFWLRQ @RU DPDOHHPSOR\HHZKRLVRQSDUHQWDOOHDYHIRUWKHVDPHSHULRGIRUZKLFKDZRPDQPRWKHU LVHQWLWOHGWR PDWHUQLW\OHDYH
6HFWLRQ
$QHPSOR\HHPD\LPPHGLDWHO\WHUPLQDWHKLVHPSOR\PHQWUHODWLRQVKLSLI
D LQ WKH RSLQLRQ RI D PHGLFDO H[SHUW KH FDQ QR ORQJHU SHUIRUP KLV ZRUN WDVNV ZLWKRXW VHULRXVO\ HQGDQJHULQJKLVKHDOWKDQGWKHHPSOR\HUKDVQRWWUDQVIHUUHGKLPWRVXLWDEOHZRUNZLWKLQGD\VRI WKHVXEPLVVLRQRIVXFKPHGLFDORSLQLRQ
E WKHHPSOR\HUKDVQRWSDLGKLVZDJHVRUFRPSHQVDWRU\ZDJHVZLWKLQGD\VRIWKHGD\WKH\DUHGXH
$QHPSOR\HHPD\LPPHGLDWHO\WHUPLQDWHKLVHPSOR\PHQWUHODWLRQVKLSRQO\ZLWKLQRQHPRQWKRIWKH GD\RQZKLFKKHOHDUQHGRIWKHJURXQGVIRULPPHGLDWHWHUPLQDWLRQRUDWWKHODWHVWZLWKLQRQH\HDURIWKH GD\WKHVHJURXQGVRFFXUUHGDURVH
$QHPSOR\HHZKRLPPHGLDWHO\WHUPLQDWHVKLVHPSOR\PHQWUHODWLRQVKLSLVHQWLWOHGWRFRPSHQVDWRU\ ZDJHVHTXDOWRKLVDYHUDJHHDUQLQJVIRUWKHQRWLFHSHULRG
6HFWLRQ
,PPHGLDWHWHUPLQDWLRQRIDQHPSOR\PHQWUHODWLRQVKLSPXVWEHQRWLILHGE\WKHHPSOR\HURUHPSOR\HH LQZULWLQJZLWKWKHJURXQGVH[SOLFLWO\VWDWHGVRWKDWWKH\FDQQRWEHFRQIXVHGZLWKRWKHUJURXQGVDQGWKH ZULWWHQQRWLILFDWLRQEHLQJGHOLYHUHGWRWKHRWKHUSDUW\ZLWKLQWKHGHWHUPLQHGSHULRGRIWLPHRWKHUZLVHLW VKDOOEHYRLGWKHVWDWHGJURXQGVPD\QRWEHVXEVHTXHQWO\PRGLILHG
7HUPLQDWLRQRID)L[HG7HUP(PSOR\PHQW5HODWLRQVKLS 6HFWLRQ
$IL[HGWHUPHPSOR\PHQWUHODWLRQVKLSVKDOOHQGXSRQH[SLU\RIWKHDJUHHGWHUP,IWKHGXUDWLRQRIWKH HPSOR\PHQW UHODWLRQVKLS LV GHWHUPLQHG E\ DSHULRGLQZKLFKDVSHFLILFSURMHFWVSHFLILFWDVN KDVWREH FRPSOHWHGWKHHPSOR\HUVKDOOQRWLI\WKHHPSOR\HHLQWLPHWKDWWKHZRUNZLOOVRRQEHFRPSOHWHGDVDUXOH DWOHDVWWKUHHGD\VLQDGYDQFH
,IDIWHUH[SLU\RIWKHDJUHHGWHUPWKHHPSOR\HHFRQWLQXHVWRZRUNDQGWKHHPSOR\HULVDZDUHRIWKLV VXFKHPSOR\PHQWUHODWLRQVKLSVKDOOEHGHHPHGWRKDYHFKDQJHGLQWRDQHPSOR\PHQWUHODWLRQVKLSDJUHHG IRUDQLQGHILQLWHSHULRGXQOHVVWKHHPSOR\HUDJUHHVRWKHUZLVHZLWKWKHHPSOR\HH
6HFWLRQ
$IL[HGWHUPHPSOR\PHQWUHODWLRQVKLSPD\DOVRHQGSULRUWRH[SLU\RIWKHDJUHHGWHUPLQDQ\PDQQHU SXUVXDQWWRVHFWLRQ
6HFWLRQ
7HUPLQDWLRQRIDQ(PSOR\PHQW5HODWLRQVKLSGXULQJWKH7ULDO3HULRG
'XULQJ D WULDO SUREDWLRQDU\ SHULRG ERWK WKH HPSOR\HU DQG WKH HPSOR\HH PD\ WHUPLQDWH WKH HPSOR\PHQWUHODWLRQVKLSLQZULWLQJIRUDQ\JURXQGZKDWVRHYHURUZLWKRXWVWDWLQJDJURXQG
:ULWWHQQRWLILFDWLRQRIWHUPLQDWLRQRIWKHHPSOR\PHQWUHODWLRQVKLSVKRXOGDVDUXOHEHGHOLYHUHGWR VHUYHGRQ WKHRWKHUSDUW\WKUHHGD\VSULRUWRWKHGD\ZKHQWKHHPSOR\PHQWUHODWLRQVKLSLVWRHQG
6HFWLRQ
7UDGH8QLRQVDQG6HYHUDQFHRIDQ(PSOR\PHQW5HODWLRQVKLS
$Q HPSOR\HU VKDOO GLVFXVV D QRWLFH RI WHUPLQDWLRQ RU LPPHGLDWH WHUPLQDWLRQ RI DQ HPSOR\PHQW UHODWLRQVKLSLQDGYDQFHZLWKWKHFRPSHWHQWWUDGHXQLRQRUJDQL]DWLRQERG\
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
7KHHPSOR\HUPD\RQO\DFWRQFRQVHQWJLYHQSXUVXDQWWRWKHSUHFHGLQJVXEVHFWLRQZLWKLQDWZRPRQWK SHULRGDIWHUWKHGD\LWZDVJLYHQ
,IWKHFRPSHWHQWWUDGHXQLRQRUJDQL]DWLRQERG\ UHIXVHVWRJLYHLWVFRQVHQWSXUVXDQWWRVXEVHFWLRQ WKHQRWLFHRIWHUPLQDWLRQRULPPHGLDWHWHUPLQDWLRQRIWKHHPSOR\PHQWUHODWLRQVKLSLVWKHUHE\PDGHYRLG LIKRZHYHUWKHRWKHUFRQGLWLRQVIRUJLYLQJQRWLFHRIWHUPLQDWLRQRULPPHGLDWHWHUPLQDWLRQDUHPHWDQGD FRXUWLQDGLVSXWHSXUVXDQWWRVHFWLRQFRQFOXGHVWKDWWKHHPSOR\HUPD\QRWMXVWO\EHH[SHFWHGWRHPSOR\ VXFKHPSOR\HHIXUWKHUWKHQRWLFHRIWHUPLQDWLRQRULPPHGLDWHWHUPLQDWLRQRIWKHHPSOR\PHQWUHODWLRQVKLS VKDOOEHYDOLG
$WLQWHUYDOVDJUHHGZLWKWKHFRPSHWHQWWUDGHXQLRQRUJDQL]DWLRQERG\ WKHHPSOR\HUVKDOOQRWLI\VXFK RUJDQL]DWLRQERG\ RIRWKHUFDVHVZKHUHWKHHPSOR\PHQWUHODWLRQVKLSKDVEHHQVHYHUHG
6HFWLRQ
:RUN5HIHUHQFHVDQG&RQILUPDWLRQRI(PSOR\PHQW
,IDQHPSOR\HHDVNVKLVHPSOR\HUWRSURYLGHKLPZLWKDUHIHUHQFHUHODWLQJWRKLVZRUNSHUIRUPDQFHD ZRUNUHIHUHQFH WKHHPSOR\HUVKDOOSURYLGHVXFKUHIHUHQFHZLWKLQGD\VKRZHYHUWKHHPSOR\HULVQRW REOLJHG WR SURYLGH LW HDUOLHU WKDQ WZR PRQWKV EHIRUH WKH HQG RI WKH HPSOR\PHQW UHODWLRQVKLS $OO
GRFXPHQWV UHODWLQJ WR WKH DSSUDLVDO RI DQ HPSOR\HH V ZRUN KLV VNLOOV TXDOLILFDWLRQV DQG DELOLWLHV DQG RWKHUIDFWVUHODWHGWRKLVZRUNSHUIRUPDQFHVKDOOIRUPDUHIHUHQFH
2Q WHUPLQDWLRQ RI DQ HPSOR\PHQW UHODWLRQVKLS WKH HPSOR\HU VKDOO SURYLGH WKH HPSOR\HH ZLWK GRFXPHQWDU\ FRQILUPDWLRQ RI KLV HPSOR\PHQW VWDWLQJ WKHUHLQ LQ SDUWLFXODU WKH IDFWV UHTXLUHG E\ WKH LPSOHPHQWLQJ VWDWXWRU\ SURYLVLRQV UHJXODWLRQV DQG RWKHU GRFXPHQWV FRQFHUQLQJ VXFK HPSOR\HH V SHUVRQDOGDWD
7KH HPSOR\HU PD\ SURYLGH RWKHU LQIRUPDWLRQ DERXW DQ HPSOR\HH RQO\ ZLWK KLV FRQVHQW XQOHVV VWDWXWRU\SURYLVLRQVVWLSXODWHRWKHUZLVH
,I WKH HPSOR\HH GLVDJUHHV ZLWK WKH FRQWHQWV RI KLV ZRUN UHIHUHQFH RU WKH FRQILUPDWLRQ RI KLV HPSOR\PHQWZLWKLQWKUHHPRQWKVRIOHDUQLQJRIWKHLUFRQWHQWVKHPD\ILOHDSHWLWLRQZLWKDFRXUWVHHNLQJ DUXOLQJWKDWWKHHPSOR\HUVKRXOGDPHQGWKHGRFXPHQW
6HYHUDQFH3D\ 6HFWLRQD
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³DYHUDJHHDUQLQJV´PHDQVDYHUDJHPRQWKO\HDUQLQJV1RWH
7KH HPSOR\HU SD\V VHYHUDQFH SD\ DIWHU WHUPLQDWLRQ RI WKH HPSOR\PHQW UHODWLRQVKLS RQ WKH QHDUHVW SD\GD\IL[HGE\WKHHPSOR\HUIRUWKHSD\PHQWRIZDJHVXQOHVVWKHHPSOR\HHDJUHHVWRDFFHSWVHYHUDQFH SD\RQWKHGD\KLVHPSOR\PHQWUHODWLRQVKLSWHUPLQDWHVRURQDODWHUSD\GD\
6HFWLRQE
,I DIWHU WHUPLQDWLRQ RI KLV HPSOR\PHQW UHODWLRQVKLS WKH HPSOR\HH WDNHV XS HPSOR\PHQW ZLWK KLV SUHYLRXVODVW HPSOR\HUEHIRUHH[SLU\RIWKHSHULRGGHWHUPLQHGE\WKHPXOWLSOHVRIDYHUDJHHDUQLQJVSDLG WRKLPDVVHYHUDQFHSD\XQGHUVHFWLRQD KHVKDOOUHIXQGVXFKVHYHUDQFHSD\RUDSURSRUWLRQDWHSDUW RILWWRWKHHPSOR\HU
7KHSURSRUWLRQDWHDPRXQWRIVHYHUDQFHSD\LVGHWHUPLQHGDFFRUGLQJWRWKHQXPEHURIFDOHQGDUGD\V IURPKLVUHHQWU\LQWRHPSOR\PHQWXQWLOH[SLU\RIWKHSHULRGXQGHUVXEVHFWLRQ
6HFWLRQF
$QHPSOR\HHLVQRWHQWLWOHGWRVHYHUDQFHSD\
D LIWKHULJKWVDQGREOLJDWLRQVXQGHUODERXUUHODWLRQVSDVVWRDQRWKHUHPSOR\HUGXHWRDQRUJDQL]DWLRQDO FKDQJH
E LIKHSHUIRUPVZRUNIRUWKHHPSOR\HULQDVXEVLGLDU\HPSOR\PHQWUHODWLRQVKLS
'LYLVLRQ
(QWLWOHPHQWVZKHQ6HYHUDQFHRIDQ(PSOR\PHQW5HODWLRQVKLSLV9RLG 6HFWLRQ
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
,IWKHHQWLUHSHULRGIRUZKLFKVXFKHPSOR\HHVKRXOGEHSDLGDFRPSHQVDWRU\ZDJHH[FHHGVVL[PRQWKV D FRXUW DFWLQJ RQ D SHWLWLRQ DSSOLFDWLRQ ILOHG E\ WKH HPSOR\HU PD\ UHDVRQDEO\ UHGXFH VXFK FRPSHQVDWRU\ ZDJH IRU D IXUWKHU SHULRG LH RYHU DQG DERYH WKH LQLWLDO VL[ PRQWKV RU QRW DGPLW WKH HPSOR\HH VHQWLWOHPHQWWRDFRPSHQVDWRU\ZDJHLQFRPLQJWRVXFKGHFLVLRQWKHFRXUWVKDOOLQSDUWLFXODU WDNH LQWR DFFRXQW ZKHWKHU WKH HPSOR\HH ZDV HPSOR\HG HOVHZKHUH LQ WKH PHDQWLPH ZKDW NLQG RI ZRUN MRE KHZDVHQJDJHGLQDQGKLVHDUQLQJVRUZK\KHGLGQRWWDNHRQRWKHU ZRUNMRE
,IWKHHPSOR\HUVHYHUVDQHPSOR\PHQWUHODWLRQVKLSLQDPDQQHUZKLFKLVYRLGEXWWKHHPSOR\HHGRHV QRWLQVLVWWKDWKLVHPSOR\PHQWEHFRQWLQXHGXQOHVVWKHHPSOR\HHDJUHHVRWKHUZLVHZLWKWKHHPSOR\HULQ ZULWLQJKLVHPSOR\PHQWUHODWLRQVKLSVKDOOEHGHHPHGWRKDYHEHHQWHUPLQDWHGE\DJUHHPHQWDVIROORZV
D LIKHZDVJLYHQQRWLFHLQDPDQQHUZKLFKZDVYRLGXSRQH[SLU\RIWKHQRWLFHSHULRG
E LIKLVHPSOR\PHQWUHODWLRQVKLSZDVWHUPLQDWHGZLWKLPPHGLDWHHIIHFWRUZLWKLQWKHWULDOSHULRGLQD PDQQHUZKLFKZDVYRLGRQWKHGD\ZKHQVXFKHPSOR\PHQWUHODWLRQVKLSVKRXOGKDYHHQGHGDVDUHVXOW RILWEHLQJWHUPLQDWHGLQVXFKFDVHVWKHHPSOR\HHLVHQWLWOHGWRDFRPSHQVDWRU\ZDJHLQWKHDPRXQW RIKLVDYHUDJHHDUQLQJVWKURXJKRXWWKHQRWLFHSHULRG
6HFWLRQ
,I DQ HPSOR\HH JLYHV D YRLG QRWLFH RI WHUPLQDWLRQ RU WHUPLQDWHV KLV HPSOR\PHQW UHODWLRQVKLS LPPHGLDWHO\LQDYRLGPDQQHURUWHUPLQDWHVKLVHPSOR\PHQWUHODWLRQVKLSGXULQJWKHWULDOSHULRGLQVXFK PDQQHUDQGWKHHPSOR\HUQRWLILHVKLPRIKLVLQVLVWHQFHWKDWWKHHPSOR\HHFRQWLQXHWRSHUIRUPKLVZRUN KLV HPSOR\PHQW UHODWLRQVKLS VKDOO FRQWLQXH ,I WKH HPSOR\HH GRHV QRW FRPSO\ ZLWK WKH HPSOR\HU V QRWLILFDWLRQ WKH HPSOR\HU PD\ UHTXLUH WKH HPSOR\HH WR FRPSHQVDWH KLP IRU WKH GDPDJH FDXVHG WR KLP VHFWLRQ DVRIWKHGD\ZKHQKHQRWLILHGWKHHPSOR\HHRIKLVLQVLVWHQFHRQFRQWLQXHGSHUIRUPDQFHRI ZRUNMRE E\VXFKHPSOR\HHKRZHYHUVXFKFRPSHQVDWLRQRIGDPDJHLHGDPDJHV IRUWKHSHULRGZKLFK SUHFHGHGWKHHPSOR\HU VDVVHUWLRQEHIRUHWKHFRXUWWKDWVHYHUDQFHRIWKHHPSOR\PHQWUHODWLRQVKLSZDVYRLG LVOLPLWHGWRDPD[LPXPRIRQHPRQWK
,IDQHPSOR\HHVHYHUVKLVHPSOR\PHQWUHODWLRQVKLSLQDPDQQHUZKLFKLVYRLGEXWWKHHPSOR\HUGRHV QRWLQVLVWWKDWWKHHPSOR\HHFRQWLQXHWRZRUNXQOHVVWKHHPSOR\HUDJUHHVRWKHUZLVHZLWKWKHHPSOR\HH WKHHPSOR\PHQWUHODWLRQVKLSVKDOOEHGHHPHGWRKDYHEHHQWHUPLQDWHGE\DJUHHPHQW
D LIWKHHPSOR\HHJDYHQRWLFHLQDYRLGPDQQHUXSRQH[SLU\RIWKHQRWLFHSHULRG
E LIKHWHUPLQDWHGKLVHPSOR\PHQWUHODWLRQVKLSLPPHGLDWHO\RUGXULQJWKHWULDOSHULRGLQDYRLGPDQQHU RQWKHGD\ZKHQWKHHPSOR\PHQWUHODWLRQVKLSZDVWRWHUPLQDWHDVDGYLVHG
,QWKHFDVHVSXUVXDQWWRWKHSUHFHGLQJVXEVHFWLRQWKHHPSOR\HUFDQQRWFODLPFRPSHQVDWLRQRIGDPDJH LHGDPDJHV IURPWKHHPSOR\HH
6HFWLRQ
,Q WKH FDVH RI D YRLG DJUHHPHQW RQ VHYHUDQFH RI DQ HPSOR\PHQW UHODWLRQVKLS WKH VDPH SURFHGXUH VKDOO DSSO\ WR WKHDVVHVVPHQWRIDQHPSOR\HH VHQWLWOHPHQWWRFRPSHQVDWLRQIRUORVWZDJHVDVLWDSSOLHV ZKHQ DQ HPSOR\HU JLYHV QRWLFH RI WHUPLQDWLRQ WR DQ HPSOR\HH LQ D YRLG PDQQHU VHFWLRQ 7KH HPSOR\HUFDQQRWFODLPGDPDJHVGXHWRVXFKDJUHHPHQWEHLQJYRLG
6HFWLRQ
%RWKDQHPSOR\HUDQGKLVHPSOR\HHPD\FODLPEHIRUHWKHFRPSHWHQW FRXUWWKHIDFWWKDWVHYHUDQFHRI DQ HPSOR\PHQW UHODWLRQVKLS E\ QRWLFH E\ LWV LPPHGLDWH WHUPLQDWLRQ E\ LWV WHUPLQDWLRQ GXULQJ WKH WULDO SHULRG RU E\ DJUHHPHQW LV YRLG EXW QR ODWHU WKDQ WZR PRQWKV DIWHU WKH GD\ ZKHQ WKH HPSOR\PHQW UHODWLRQVKLSZDVWRKDYHHQGHGDVDUHVXOWRIVXFKVHYHUDQFH
'LYLVLRQ
(OHFWLRQDQG$SSRLQWPHQW
6HFWLRQ
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
$QHPSOR\HHZKRLVHOHFWHGRUDSSRLQWHGWRRIILFHPD\EHUHFDOOHGIURPLWRUUHVLJQ+LVUHFDOORU UHVLJQDWLRQ PXVW EH LQ ZULWLQJ DQG GHOLYHUHG WR WKH RWKHU SDUW\ SDUWLFLSDQW RWKHUZLVH LW LV YRLG 3HUIRUPDQFHRIVXFKRIILFHZLOOILQLVKRQWKHGD\IROORZLQJWKHGD\RQZKLFKQRWLFHRIUHFDOORUDOHWWHURI UHVLJQDWLRQLVGHOLYHUHGWRWKHRWKHUSDUW\XQOHVVDODWHUGD\LVVWDWHGLQWKHQRWLFHRIUHFDOORUWKHOHWWHURI UHVLJQDWLRQ
7KHHPSOR\PHQWUHODWLRQVKLSVKDOOQRWHQGDVDUHVXOWRIH[SLU\RIWKHHPSOR\HH VWHUPRIRIILFHRUKLV UHFDOORUUHVLJQDWLRQIURPRIILFH7KHHPSOR\HUVKDOODJUHHZLWKVXFKHPSOR\HHRQKLVIXUWKHUSODFHPHQW ZLWKLQ WKH HPSOR\HU V XQGHUWDNLQJ LQ DQRWKHU MRE FRUUHVSRQGLQJ WR KLV TXDOLILFDWLRQV RU LQ DQRWKHU MRE W\SHRIZRUN VXLWDEOHIRUKLP,IWKHHPSOR\HUGRHVQRWKDYHDSRVWIRUWKHHPSOR\HHWKLVVKDOOFRQVWLWXWH DQLPSHGLPHQWRQWKHSDUWRIWKHHPSOR\HUVHFWLRQ DQGVLPXOWDQHRXVO\VHUYHDVDJURXQGIRUJLYLQJ QRWLFHRIWHUPLQDWLRQSXUVXDQWWRVHFWLRQ F WKHHPSOR\HHLVHQWLWOHGWRVHYHUDQFHSD\RQO\LIKLV HPSOR\PHQW UHODWLRQVKLS LV VHYHUHG DIWHU UHFDOO IURP KLV RIILFH ZKLFK ZLOO FHDVH WR H[LVW EHFDXVH RI RUJDQL]DWLRQDO FKDQJHV DQG KLV VHYHUDQFH SD\ VKDOO EH WKH VDPH DV WKDW RI HPSOR\HHV DIIHFWHG E\ RUJDQL]DWLRQDOFKDQJHV2WKHUZLVHWKHSURYLVLRQVRQWHUPLQDWLRQRIDQHPSOR\PHQWUHODWLRQVKLSEDVHGRQ DQHPSOR\PHQWFRQWUDFWVKDOODSSO\WRWHUPLQDWLRQRIWKHVDLGHPSOR\PHQWUHODWLRQVKLS
6HFWLRQVWR 5HSHDOHG
6HFWLRQ
7KH SURYLVLRQV RQ DQ HPSOR\PHQW UHODWLRQVKLS EDVHG RQ DQ HPSOR\PHQW FRQWUDFW VKDOO RWKHUZLVH DSSO\WRDQHPSOR\PHQWUHODWLRQVKLSEDVHGXSRQHOHFWLRQRUDSSRLQWPHQW
'LYLVLRQ
3DUDOOHO(PSOR\PHQW5HODWLRQVKLSVDQG6XEVLGLDU\:RUNLQJ$FWLYLW\
6HFWLRQ
,I DQ HPSOR\HH KDV DJUHHG WR PRUH WKDQ RQH HPSOR\PHQW UHODWLRQVKLS WKH ULJKWV DQG GXWLHV REOLJDWLRQV HQVXLQJ IURP HDFK VKDOO EH FRQVLGHUHG LQGHSHQGHQWO\ XQOHVV WKLV &RGH RU RWKHU VWDWXWRU\ SURYLVLRQVVWLSXODWHRWKHUZLVH
6XEVLGLDU\(PSOR\PHQW5HODWLRQVKLSV 6HFWLRQ
$PDLQSULQFLSDO HPSOR\PHQWUHODWLRQVKLSDQGDVXEVLGLDU\UHODWLRQVKLSUHIHUWRDVLWXDWLRQLQZKLFK DQ HPSOR\HH LV HPSOR\HG IRU WKH SUHVFULEHG ZHHNO\ ZRUNLQJ WLPH VHFWLRQ D LQ RQH HPSOR\PHQW UHODWLRQVKLS EXW LQ DGGLWLRQ WR WKLV KH SHUIRUPV ZRUN DV SDUW RI DQRWKHU HPSOR\PHQW UHODWLRQVKLS $ VXEVLGLDU\ HPSOR\PHQW UHODWLRQVKLS PD\ RQO\ EH DJUHHG IRU ZRUNLQJ KRXUV ZKLFK DUH VKRUWHU WKDQ WKH SUHVFULEHGZHHNO\ZRUNLQJWLPH
$QHPSOR\PHQWUHODWLRQVKLSDJUHHGZLWKDQHPSOR\HHIRUSHULRGVZKHQKHLVWDNLQJDQQXDOOHDYHVKDOO QRWEHFRQVLGHUHGDVDVXEVLGLDU\HPSOR\PHQWUHODWLRQVKLS
7KH*RYHUQPHQWPD\VWLSXODWHLQDGHFUHH
D WKHPD[LPXPZRUNLQJWLPHZKLFKFDQEHDJUHHGIRUDVXEVLGLDU\HPSOR\PHQWUHODWLRQVKLS
E WKH PD[LPXP QXPEHU RI ZRUNLQJ KRXUV ZKLFK PD\ EH DJUHHG LQ WRWDO IRU WZR RU PRUH VXEVLGLDU\ HPSOR\PHQWUHODWLRQVKLSVRULQDJUHHPHQWVRQZRUNLQJDFWLYLW\DFWLYLWLHV
6HFWLRQD 5HSHDOHG
6HFWLRQE
$VXEVLGLDU\HPSOR\PHQWUHODWLRQVKLSPD\EHWHUPLQDWHGE\WKHHPSOR\HURUHPSOR\HHJLYLQJQRWLFH VWDWLQJ RU ZLWKRXW VWDWLQJ DQ\ JURXQG 7KH QRWLFH SHULRG ODVWV GD\V DQGVWDUWVRQWKHGD\ZKHQVXFK QRWLFHLVGHOLYHUHGVHUYHGRQWKHRWKHUSDUW\
7KH SURYLVLRQV RI VHFWLRQV DQG VKDOO QRW DSSO\ WR DQ\ VXEVLGLDU\HPSOR\PHQWUHODWLRQVKLS
,IDQHPSOR\HHDJUHHVWKHHPSOR\HUZLWKZKRPKHLVLQDVXEVLGLDU\HPSOR\PHQWUHODWLRQVKLSPD\ VFKHGXOHKLVZRUNLQJWLPHLQWKHVXEVLGLDU\HPSOR\PHQWUHODWLRQVKLS HLWKHUHYHQO\RUXQHYHQO\IRUD SHULRG RI ORQJHU WKDQ RQH ZHHN EXW QRW H[FHHGLQJ PRQWKV XQGHU WKH FRQGLWLRQV VWLSXODWHG IRU DQ DSSURSULDWH DGMXVWPHQW WR WKH ZRUNLQJ WLPH >VHFWLRQ DQG @ ,I WKH ZRUNLQJ WLPH LV VFKHGXOHG
XQHYHQO\FRPSOLDQFHZLWKWKHDJUHHGQXPEHURIZRUNLQJKRXUVLVDVVHVVHGE\WDNLQJDFFRXQWRIWKHHQWLUH SHULRGIRUZKLFKWKHVXEVLGLDU\HPSOR\PHQWUHODWLRQVKLSKDVEHHQDJUHHGEXWQRWIRUDSHULRGORQJHUWKDQ PRQWKV
$QHPSOR\HUPD\QRWHPSOR\DQDGROHVFHQWLQDVXEVLGLDU\HPSOR\PHQWUHODWLRQVKLS
$Q HPSOR\PHQW UHODWLRQVKLS ZKLFK KDV EHHQ DJUHHG ZLWK D PHPEHU RI D FRRSHUDWLYH ZKRVH HPSOR\PHQW UHODWLRQVKLS FRQVWLWXWHV SDUW RI KLV PHPEHUVKLS LV DOVR FRQVLGHUHG DV D VXEVLGLDU\ HPSOR\PHQWUHODWLRQVKLSLIVXFKPHPEHURIDFRRSHUDWLYHLVDOVRLQIXOOWLPHHPSOR\PHQW
6HFWLRQ
6XEVLGLDU\:RUNLQJ$FWLYLW\
:RUNZKLFKDQHPSOR\HHSHUIRUPVIRUDQHPSOR\HUZLWKZKRPKHKDVDQHPSOR\PHQWUHODWLRQVKLS RYHUDQGDERYHRIWKHZRUNLQJWLPHSUHVFULEHGIRUWKLVHPSOR\PHQWUHODWLRQVKLSDQGZKLFKLQYROYHVZRUN RI D NLQG RWKHU WKDQ WKDW DJUHHG LQ WKHHPSOR\PHQWFRQWUDFWVKDOOEHGHHPHGWREHVXEVLGLDU\ZRUNLQJ DFWLYLW\,WPD\RQO\EHFDUULHGRXWLQWKHFRQWH[WRIDQDGGLWLRQDOHPSOR\PHQWUHODWLRQVKLS>VHFWLRQV DQG @RURQWKHEDVLVRIDQDJUHHPHQWIRUZRUNSHUIRUPHGRXWVLGHRIDQHPSOR\PHQWUHODWLRQVKLS
&+$37(5,,
:25.',6&,3/,1($1':25.&2'( 6HFWLRQ 5HSHDOHG
6HFWLRQ
)XQGDPHQWDO2EOLJDWLRQVRI(PSOR\HHV
(PSOR\HHVDUHREOLJHGLQSDUWLFXODU
D WRZRUNFRQVFLHQWLRXVO\DQGSURSHUO\LQDFFRUGDQFHZLWKWKHLUVWUHQJWKNQRZOHGJHDQGDELOLW\FDUU\ RXWLQVWUXFWLRQVRIWKHLUVXSHULRUVZKLFKDUHLVVXHGLQFRQIRUPLW\ZLWKWKHVWDWXWRU\SURYLVLRQVDQG REVHUYHWKHSULQFLSOHVRIFRRSHUDWLRQZLWKRWKHUHPSOR\HHV
E WRPDNHIXOOXVHRIWKHLUZRUNLQJWLPHDQGWKHPHDQVRISURGXFWLRQLQRUGHUWRFDUU\RXWWKHZRUN HQWUXVWHGWRWKHPDQGFRPSOHWHWKHLUZRUNWDVNVWRDJRRGVWDQGDUGHFRQRPLFDOO\DQGRQWLPH
F WRREVHUYHWKHVWDWXWRU\SURYLVLRQVUHODWLQJWRWKHZRUNZKLFKWKH\DUHFDUU\LQJRXWDVSDUWRIWKHLU WDVNVDQGWKHRWKHUSURYLVLRQVDQGUHJXODWLRQVUHODWHGWRVXFKZRUNLIWKH\KDYHEHHQGXO\DFTXDLQWHG WKHUHZLWK
G WRSURSHUO\PDQDJHWKHUHVRXUFHVHQWUXVWHGWRWKHPE\WKHHPSOR\HUWRJXDUGDQGSURWHFWWKHSURSHUW\ RI WKH HPSOR\HU DJDLQVW GDPDJH ORVV GHVWUXFWLRQ DQG PLVXVH DQG QRW WR DFW FRQWUDU\ WR WKH HPSOR\HU VOHJLWLPDWHLQWHUHVWV
(PSOR\HHVRIVWDWHDGPLQLVWUDWLYHDXWKRULWLHVHPSOR\HHVRIORFDOVHOIJRYHUQLQJDUHDVHPSOR\HGE\ WKHRIILFHRIDYLOODJHRUPXQLFLSDOFRXQFLOPXQLFLSDOFRXQFLORIDFKDUWHUHGFLW\RUDERURXJKFRXQFLO RIDFKDUWHUHGFLW\UHJLRQDODXWKRULW\WKHPXQLFLSDOFRXQFLORIWKHFDSLWDORI3UDJXHDQGDQ\ERURXJK FRXQFLO RI 3UDJXH H[FHSW IRU RIILFLDOV RI ORFDO VHOIJRYHUQLQJ DUHDV SXUVXDQW WR VSHFLDO VWDWXWRU\
SURYLVLRQV1RWHD HPSOR\HHVZKRZRUNLQWKHORFDOSROLFHDQGDUHHPSOR\HGE\ORFDOVHOIJRYHUQLQJ DUHDV FRXUWVDQGVWDWHSURVHFXWRU VRIILFHVWKH3ROLFHRIWKH&]HFK5HSXEOLFWKH)LUHILJKWLQJ%ULJDGHVRI WKH&]HFK5HSXEOLFWKHDUPHGIRUFHV1RWHE WKH6HFXULW\,QWHOOLJHQFH$JHQF\WKH3ULVRQ6HUYLFHWKH 3UREDWLRQDQG0HGLDWLRQ6HUYLFHWKH2IILFHRIWKH3UHVLGHQWRIWKH&]HFK 5HSXEOLFWKH2IILFHVRIWKH &KDPEHU RI 'HSXWLHV DQG WKH 2IILFH RI WKH 6HQDWH WKH 2PEXGVPDQ V 2IILFH WKH 2IILFH IRU 5HSUHVHQWDWLRQRIWKH6WDWHLQ3URSHUW\0DWWHUV
WKH2IILFHRIWKH*RYHUQPHQW&DELQHW2IILFH WKH 6XSUHPH ,QVSHFWLRQ $XGLWLQJ 2IILFH WKH 2IILFH IRU WKH 3URWHFWLRQ RI 3HUVRQDO 'DWD
WKH&]HFK 1DWLRQDO%DQNDQGVWDWHIXQGVDQGHPSOR\HHVRISURWHFWHGODQGVFDSHDUHDVDQGQDWLRQDOSDUNVDUHIXUWKHU UHTXLUHG BBBBBBBBBBBBBBBBBB
(IIHFWLYHDVRI-DQXDU\
(IIHFWLYHDVRI-XO\
(IIHFWLYHDVRI0D\ BBBBBBBBBBBBBBBBBB
D WR DFW DQG PDNH GHFLVLRQV LPSDUWLDOO\ DQG ZKHQ FDUU\LQJ RXW WKHLU GXWLHV WR UHIUDLQ IURP FRQGXFW SUDFWLFHV ZKLFKPLJKWSXWDWULVNFRQILGHQFHLQWKHLPSDUWLDOLW\RIWKHLUGHFLVLRQPDNLQJ
E WRPDLQWDLQFRQILGHQWLDOLW\FRQFHUQLQJIDFWVDERXWZKLFKWKH\OHDUQZKLOHFDUU\LQJRXWWKHLUGXWLHVDQG ZKLFKLQWKHHPSOR\HU VLQWHUHVWVKRXOGQRWEHFRPPXQLFDWHGWRRWKHUSHUVRQVWKLVVKDOOQRWDSSO\LI WKHVWDWXWRU\RUJDQRUDPDQDJHUDSSRLQWHGE\VXFKVWDWXWRU\RUJDQUHOHDVHVHPSOR\HHVIURPWKLVGXW\ XQOHVVDQRWKHU$FW1RWH SURYLGHVIRURWKHUZLVH
F QRW WR DFFHSW JLIWV RU RWKHU EHQHILWV LQ FRQQHFWLRQ ZLWK WKH SHUIRUPDQFH RI WKHLU RIILFH ZLWK WKH H[FHSWLRQ RI JLIWV RU EHQHILWV SURYLGHG E\ WKHLU HPSOR\HU RU RQ WKH EDVLV RI VWDWXWRU\ SURYLVLRQV RU WKHLUFROOHFWLYHEDUJDLQLQJDJUHHPHQW
G WRUHIUDLQIURPDQ\FRQGXFWSUDFWLFHV ZKLFKPLJKWOHDGWRFRQIOLFWEHWZHHQSXEOLFLQWHUHVWVDQGWKHLU SHUVRQDO LQWHUHVWV HVSHFLDOO\ E\ WKH PLVXVH RI LQIRUPDWLRQ DFTXLUHG LQ FRQQHFWLRQ ZLWK WKH SHUIRUPDQFHRIWKHLURIILFHIRUWKHLURZQRUDQRWKHUSHUVRQ VEHQHILW
7KH HPSOR\HHV SXUVXDQW WR VXEVHFWLRQ PD\ QRW EH PHPEHUV RI WKH PDQDJLQJ RU VXSHUYLVLQJ VXSHUYLVRU\ RUJDQRIDOHJDOHQWLW\HQJDJHGLQEXVLQHVVHQWUHSUHQHXULDO DFWLYLW\WKLVREOLJDWLRQVKDOO QRWDSSO\LIWKHLUHPSOR\HUDSSRLQWVWKHPWRVXFKDQRUJDQDQGLILQFRQQHFWLRQZLWKWKHLUPHPEHUVKLS WKH\GRQRWUHFHLYHDQ\UHPXQHUDWLRQIURPVXFKDOHJDOHQWLW\
7KHHPSOR\HHVSXUVXDQWWRVXEVHFWLRQ PD\HQJDJHLQEXVLQHVVDFWLYLW\RQO\ZLWKWKHSULRUZULWWHQ FRQVHQWRIWKHLUHPSOR\HU
7KHUHVWULFWLRQVVWLSXODWHGLQWKHSUHFHGLQJVXEVHFWLRQVKDOOQRWDSSO\WRDFWLYLWLHVE\VXFKSHUVRQV ZKLFKDUHRIDVFLHQWLILFHGXFDWLRQDOMRXUQDOLVWLFOLWHUDU\RUDUWLVWLFQDWXUHRUWRWKHPDQDJHPHQWRIWKHLU RZQSURSHUW\
7KHSURYLVLRQVRIVXEVHFWLRQV WR VKDOODSSO\XQOHVVDQRWKHU$FWSURYLGHVIRURWKHUZLVH1RWH D
6HFWLRQ
)XQGDPHQWDO2EOLJDWLRQVRI0DQDJHULDO6WDII
0DQDJHULDOVWDIIHPSOR\HHV VKDOOLQSDUWLFXODU
D PDQDJHDQGVXSHUYLVHWKHZRUNRIHPSOR\HHVDQGUHJXODUO\DSSUDLVHWKHLUDWWLWXGHWRZDUGVWKHLUZRUN
DQGZRUNWHDPDQGWKHUHVXOWVRIWKHLUZRUN
E LQWKHLQWHUHVWRILQFUHDVLQJODERXUSURGXFWLYLW\RUJDQL]HWKHZRUNDVZHOODVSRVVLEOHDQGVHHWRLW WKDW LQ DFFRUGDQFH ZLWK WKH HFRQRPLF DQG WHFKQLFDO SRVVLELOLWLHV SURGXFWLRQ FRUUHVSRQGV WR WKH UHTXLUHPHQWVRIWHFKQRORJLFDODQGHFRQRPLFGHYHORSPHQW
F FUHDWHIDYRXUDEOHZRUNLQJFRQGLWLRQVDQGHQVXUHVDIHW\DQGWKHSURWHFWLRQRIKHDOWKDWZRUN
G DUUDQJHIRUWKHUHPXQHUDWLRQRIHPSOR\HHVLQDFFRUGDQFHZLWKWKHVWDWXWRU\SURYLVLRQVRQZDJHVDQG FROOHFWLYHEDUJDLQLQJDJUHHPHQWVRULQWHUQDOZDJHUHJXODWLRQVRUHPSOR\PHQWFRQWUDFWVDQGHQVXUH WKDWWKHZDJHVRIHPSOR\HHVDUHGLIIHUHQWLDWHGWRUHIOHFWWKHLUSURGXFWLYLW\DQGVKDUHLQRXWSXWILQDO ZRUNUHVXOWV
H FUHDWHIDYRXUDEOHFRQGLWLRQVIRULPSURYLQJWKHHPSOR\HHV YRFDWLRQDOVNLOOVDQGPHHWLQJWKHLUFXOWXUDO DQGVRFLDOQHHGV
I HQVXUHWKDWWKHVWDWXWRU\SURYLVLRQVDQGRWKHUUHJXODWLRQVDUHDGKHUHGWRDQGHVSHFLDOO\WKDWHPSOR\HHV REVHUYHZRUNGLVFLSOLQHHYDOXDWHWKHLQLWLDWLYHDQGHIIRUWDWZRUNDQGVHHWRLWWKDWWKHUHLVQREUHDFK RIZRUNGLVFLSOLQHDQGWKDWWKHHPSOR\HHVSHUIRUPWKHLUREOLJDWLRQV
J HQVXUHWKHDGRSWLRQRIWLPHO\DQGHIIHFWLYHPHDVXUHVWRSURWHFWWKHHPSOR\HU VSURSHUW\
6HFWLRQ
2WKHU*DLQIXO$FWLYLW\
,Q DGGLWLRQ WR WKH ZRUN WKH\ FDUU\ RXW ZLWKLQ WKH IUDPHZRUN RI WKHLU HPSOR\PHQW UHODWLRQVKLSV HPSOR\HHVPD\RQO\HQJDJHLQRWKHUJDLQIXODFWLYLW\LQWKHVDPHILHOGRIDFWLYLW\DVWKDWRIWKHLUHPSOR\HU ZLWKKLVSULRUZULWWHQFRQVHQW
3UHYLRXVO\JLYHQFRQVHQWPD\EHZLWKGUDZQE\WKHHPSOR\HULQZULWLQJ,QVXFKZULWWHQZLWKGUDZDORI FRQVHQWWKHHPSOR\HUVKDOOVWDWHWKHJURXQGVIRUKLVGHFLVLRQ:LWKRXWXQGXHGHOD\WKHHPSOR\HHVKDOO WHUPLQDWHVXFKJDLQIXODFWLYLW\LQDPDQQHUHQVXLQJIURPWKHVWDWXWRU\SURYLVLRQV
7KH UHVWULFWLRQ SXUVXDQW WR VXEVHFWLRQ VKDOO QRW DSSO\ WR HQJDJHPHQW LQ ZRUN RI D VFLHQWLILF HGXFDWLRQDOMRXUQDOLVWLFOLWHUDU\RUDUWLVWLFQDWXUH
7KHSURYLVLRQVRIVXEVHFWLRQV DQG VKDOODSSO\XQOHVVDQRWKHU$FWSURYLGHVIRURWKHUZLVH1RWH D
6HFWLRQVWR 5HSHDOHG
6HFWLRQ
:RUN&RGH:RUNLQJ5HJXODWLRQV
$QHPSOR\HUPD\LVVXHDZRUNFRGHUXOHVRIZRUNZRUNLQJUHJXODWLRQV 7KHHPSOR\HUVSXUVXDQWWR VHFWLRQ DUHREOLJHGWRLVVXHVXFKFRGHV
,QFRQIRUPLW\ZLWKWKHVWDWXWRU\SURYLVLRQVZRUNFRGHVZRUNLQJUHJXODWLRQV VKDOODSSO\WKLV&RGH V SURYLVLRQVLQGHWDLOWDNLQJLQWRDFFRXQWWKHVSHFLILFFRQGLWLRQVRIWKHHPSOR\HU
7KHHPSOR\HUPD\LVVXHDZRUNFRGHZRUNLQJUHJXODWLRQV XQOHVVDQRUJDQVXSHULRUWRWKHHPSOR\HU KDVLVVXHGLWWKHP IRUHPSOR\HUVZKLFKDUHVXERUGLQDWHGWRVXFKRUJDQERG\ $QRUJDQVXSHULRUWRWKH
HPSOR\HURUWKHHPSOR\HUVKDOORQO\LVVXHVXFKFRGHZRUNLQJUHJXODWLRQV ZLWKWKHSULRUFRQVHQWRIWKH FRPSHWHQWWUDGHXQLRQRUJDQRUJDQL]DWLRQERG\ RWKHUZLVHVXFKFRGHUHJXODWLRQV VKDOOEHYRLG
7KHZRUNFRGHZRUNLQJUHJXODWLRQV VKDOOEHELQGLQJRQWKHHPSOR\HUDQGRQDOORIKLVHPSOR\HHV FRPLQJLQWRHIIHFWRQWKHGD\VWDWHGWKHUHLQEXWQRVRRQHUWKDQWKHGD\LWLVPDGHNQRZQWRWKHHPSOR\HHV FRQFHUQHG
$OO HPSOR\HHV PXVW EH LQIRUPHG RI WKH ZRUN FRGH ZRUNLQJ UHJXODWLRQV ZKLFK VKDOO EH SXEOLFO\ DFFHVVLEOHWRDOORIWKHHPSOR\HU VHPSOR\HHV
&+$37(5,,,
:25.,1*7,0($1'5(673(5,2'6 'LYLVLRQ
:RUNLQJ7LPHDQG:RUN%UHDNV 6HFWLRQ
'HILQLWLRQV
³:RUNLQJWLPH´³SUDFRYQtGRED´ VKDOOPHDQDQ\SHULRGLQZKLFKDQHPSOR\HHLVHQJDJHGLQZRUN IRUKLVHPSOR\HU ³$UHVWSHULRG´³GREDRGSRþLQNX´ VKDOOPHDQDQ\SHULRGZKLFKLVQRWZRUNLQJWLPH
³$VKLIW´³VP QD´ VKDOOPHDQWKHSDUWRIZHHNO\ZRUNLQJWLPH>VHFWLRQD @H[FOXGLQJRYHUWLPH ZKHQDQHPSOR\HHLVHQJDJHGLQZRUNIRUKLVHPSOR\HUDFFRUGLQJWRDSUHGHWHUPLQHGSDWWHUQVFKHGXOH RI ZRUNVKLIWVGXULQJDSHULRGRIFRQVHFXWLYHKRXUV
³$ WZRVKLIW SDWWHUQ RI ZRUN´ VKDOO PHDQ D SDWWHUQ VFKHGXOH RI ZRUN RUJDQL]DWLRQ LQ ZKLFK HPSOR\HHVURWDWHLQWZRVKLIWVGXULQJDSHULRGRIFRQVHFXWLYHKRXUV³$WKUHHVKLIWSDWWHUQRIZRUN´ VKDOOPHDQDSDWWHUQVFKHGXOH RIZRUNRUJDQL]DWLRQLQZKLFKHPSOR\HHVURWDWHLQWKUHHVXFFHVVLYHVKLIWV GXULQJDSHULRGRIFRQVHFXWLYHKRXUV³$FRQWLQXRXVSDWWHUQRIZRUN´RU³DQXQLQWHUUXSWHGSDWWHUQRI ZRUN´LQ&]HFK³QHS HWUåLWêSUDFRYQtUHåLP´ VKDOOEHDSDWWHUQVFKHGXOH RIZRUNLQZKLFKHPSOR\HHV URWDWHLQVKLIWVGXULQJDSHULRGRIFRQVHFXWLYHKRXUVEHFDXVHWKHLUHPSOR\HU VRSHUDWLRQVDUHFRQWLQXRXV ³DFRQWLQXRXVRSHUDWLRQ´RU³DQXQLQWHUUXSWHGRSHUDWLRQLQ&]HFK³QHS HWUåLWêSURYR]´ VKDOOPHDQDQ RSHUDWLRQZKLFKUHTXLUHVZRUNWREHSHUIRUPHGKRXUVDGD\VHYHQGD\VDZHHN ³6WDQGE\´³SUDFRYQtSRKRWRYRVW´ VKDOOPHDQWKHWLPHGXULQJZKLFKDQHPSOR\HHLVLQDVWDWHRI UHDGLQHVVWRFDUU\RXWZRUNFRYHUHGE\KLVHPSOR\PHQWFRQWUDFWEXWZKLFKLQWKHHYHQWRIXUJHQWQHHG PXVWEHFDUULHGRXWLQDGGLWLRQWRKLVVFKHGXOHGZRUN
³2YHUWLPHZRUN´³SUiFHS HVþDV´ VKDOOPHDQZRUNFDUULHGRXWE\DQHPSOR\HHRQWKHLQVWUXFWLRQRI KLV HPSOR\HU RU ZLWK KLV HPSOR\HU V FRQVHQW LQ DGGLWLRQ WR WKH ZHHNO\ ZRUNLQJ WLPH FRYHUHG E\ KLV SUHGHWHUPLQHGVFKHGXOHRIZRUNDQGSDWWHUQRIVKLIWV>VHFWLRQVDQG @,QWKHFDVHRIHPSOR\HHV ZKRVH ZRUNLQJ WLPH LV UHGXFHG >VHFWLRQ @ RYHUWLPH VKDOO PHDQ DQ\ ZRUN H[FHHGLQJ WKHLU SUHGHWHUPLQHGZHHNO\ZRUNLQJWLPHVHFWLRQD VXFKHPSOR\HHVFDQQRWEHRUGHUHGWRZRUNRYHUWLPH,I DQ HPSOR\HH H[FHHGV KLV ZHHNO\ ZRUNLQJ WLPH E\ ZRUNLQJ RII KLV WLPH RII ZKLFK KH ZDV JUDQWHG LQ DQRWKHUZHHN DWKLVRZQUHTXHVWE\WKHHPSOR\HUWKLVVKDOOQRWEHUHJDUGHGDVRYHUWLPH
6HFWLRQD
7KHPD[LPXPZHHNO\ZRUNLQJWLPHVKDOOEHKRXUV 7KHPD[LPXPZHHNO\ZRUNLQJWLPHRIHPSOR\HHV
D ZKRZRUNXQGHUJURXQGRQPLQLQJFRDORUHVRUQRQPHWDOOLFUDZPDWHULDOVRURQFRQVWUXFWLQJPLQHV RUZKRZRUNDWVLWHVRIJHRORJLFDOH[SORUDWLRQDQGXVHPLQLQJWHFKQLTXHVVKDOOEHKRXUV
E ZKRZRUNDWKUHHVKLIWRUFRQWLQXRXVSDWWHUQVFKHGXOH RIVKLIWVVKDOOEHKRXUV
F ZKRZRUNDWZRVKLIWSDWWHUQVFKHGXOH VKDOOEHKRXUV
G ZKRDUHXQGHU\HDUVRIDJHVKDOOEHKRXUVZLWKWKHLUZRUNLQJWLPHRQDQ\LQGLYLGXDOGD\QRW H[FHHGLQJVL[KRXUV
7KHLQWURGXFWLRQIRUKHDOWKUHDVRQVRIVKRUWHQHGZRUNLQJWLPHZLWKRXWDUHGXFWLRQLQZDJHVEHORZWKH OHYHOSXUVXDQWWRVXEVHFWLRQV DQG VKDOOUHTXLUHWKHDSSURYDORIWKH0LQLVWU\RI/DERXUDQG6RFLDO $IIDLUVDFWLQJLQDJUHHPHQWZLWKWKH0LQLVWU\RI+HDOWKDQGDIWHUFRQVXOWDWLRQZLWKWKHFRPSHWHQWFHQWUDO WUDGHXQLRQRUJDQERG\ DQGHPSOR\HUV RUJDQL]DWLRQ
$IXUWKHUVKRUWHQLQJRIZRUNLQJKRXUVEHORZWKHOHYHOVSXUVXDQWWRWKHSUHFHGLQJVXEVHFWLRQVZLWKRXW D FRQFXUUHQW UHGXFWLRQ LQ ZDJHV PD\ EH DJUHHG LQ D FROOHFWLYH EDUJDLQLQJ DJUHHPHQW RU SUHVFULEHG LQ LQWHUQDOUHJXODWLRQV
:RUNLQJWLPHSXUVXDQWWRVXEVHFWLRQV WR VKDOOEHUHJDUGHGDVWKHSUHVFULEHGLHIL[HG ZHHNO\ ZRUNLQJWLPH
:RUNLQJ7LPH6FKHGXOHV 6HFWLRQ
7KH HPSOR\HU VKDOO GHFLGH ZRUNLQJ WLPH VFKHGXOHV DIWHU FRQVXOWLQJ WKH FRPSHWHQW WUDGH XQLRQ RUJDQL]DWLRQERG\ $VDUXOHZRUNLQJWLPHVKDOOEHVFKHGXOHGRYHUILYHZRUNLQJGD\VSHUZHHN:KHQLW LV VFKHGXOHG WKH HPSOR\HU VKDOO WDNH LQWR DFFRXQW WKH DYDLODELOLW\ RI WUDQVSRUW IRU HPSOR\HHV WR WKHLU ZRUNSODFHWKHVXSSO\RIHOHFWULFLW\JDVDQGKHDWLQJVWHDPDQGWKHQHHGIRUVXFKVFKHGXOHQRWWRFRQIOLFW ZLWKVDIHDQGKHDOWK\ZRUNLQJRUWKHLQWHUHVWVRIWKHSRSXODWLRQRUQRWWRGLVUXSWWKHIROORZRQDFWLYLWLHV RIRWKHUHPSOR\HUV
:KHQ ZRUNLQJ WLPH LV HYHQO\ VFKHGXOHG WKH GLIIHUHQFH EHWZHHQ WKH OHQJWK RI ZRUNLQJ WLPH LQ LQGLYLGXDOZHHNVVKRXOGQRWH[FHHGWKUHHKRXUVDQGWKHOHQJWKRIRQHVKLIWVKRXOGQRWH[FHHGQLQHKRXUV DYHUDJH ZHHNO\ ZRUNLQJ WLPH ZLWKRXW RYHUWLPH ZRUN LQ D SHULRG RI IRXU VXFFHVVLYH ZHHNV PD\ QRW H[FHHGWKHOLPLWGHWHUPLQHGIRUZHHNO\ZRUNLQJWLPH
6HFWLRQ
,IWKHQDWXUHRIWKHZRUNRUWKHRSHUDWLQJFRQGLWLRQVGRQRWDOORZZRUNLQJWLPHWREHVFKHGXOHGHYHQO\ RYHU LQGLYLGXDO ZHHNV >VHFWLRQ @ WKH HPSOR\HU PD\ DIWHU FRQVXOWLQJ WKH FRPSHWHQW WUDGH XQLRQ RUJDQL]DWLRQ ERG\ VFKHGXOH ZRUNLQJ WLPH XQHYHQO\ RYHU D SHULRG DJUHHG LQ WKH FROOHFWLYH EDUJDLQLQJ DJUHHPHQWRUKHPD\GLVFXVVWKHXQHYHQVFKHGXOHRIZRUNLQJWLPHZLWKKLVHPSOR\HH,QWKHFDVHRIDQ XQHYHQVFKHGXOHRIZRUNLQJWLPHDYHUDJHZHHNO\ZRUNLQJWLPHZLWKRXWRYHUWLPHZRUNRYHUDSHULRGRI DPD[LPXPRIVXFFHVVLYHPRQWKVPD\QRWH[FHHGWKHOHJDOO\GHWHUPLQHGZHHNO\ZRUNLQJWLPH
,IZRUNLQJWLPHLVXQHYHQO\VFKHGXOHGERWKRIWKHOLPLWVSXUVXDQWWRVHFWLRQ PD\EHH[FHHGHG +RZHYHUWKHOHQJWKRIRQHVKLIWLQDQXQHYHQVFKHGXOHRIZRUNLQJWLPHPD\QRWH[FHHGKRXUV
7KHHPSOR\HUVKDOOGUDZXSDZULWWHQVFKHGXOHRIZRUNLQJWLPHDQGDFTXDLQWKLVHPSOR\HHZLWKLWQR
ODWHUWKDQWZRZHHNVEHIRUHWKHFRPPHQFHPHQWRIWKHSHULRGRYHUZKLFKVXFKZRUNLQJWLPHLVXQHYHQO\ GLVWULEXWHGXQOHVVWKHHPSOR\HUDJUHHVRWKHUZLVHZLWKKLVHPSOR\HH
6HFWLRQD
)OH[LEOH:RUNLQJ7LPH
,QWKHLQWHUHVWRIPDNLQJEHWWHUXVHRIWKHHPSOR\HHV ZRUNLQJWLPHDQGPHHWLQJWKHLUSHUVRQDOQHHGV PRUH VDWLVIDFWRULO\ WKH HPSOR\HU PD\ LQWURGXFH IOH[LEOH ZRUNLQJ WLPH ³SUXåQi SUDFRYQt GRED´ DIWHU FRQVXOWLQJWKHFRPSHWHQWWUDGHXQLRQRUJDQL]DWLRQERG\ RQWKHLVVXHVXFKIOH[LEOHZRUNLQJWLPHPD\ DOVREHLQWURGXFHGRQO\DWFHUWDLQZRUNSODFHVRUDSSOLHGRQO\WRFHUWDLQHPSOR\HHV
7KHHPSOR\HUVKDOOGHWHUPLQHWKHVSHFLILFFRQGLWLRQVXQGHUZKLFKIOH[LEOHZRUNLQJWLPHLVLQWURGXFHG LQKLVZRUNFRGHZRUNLQJUHJXODWLRQV DQGDFTXDLQWKLVHPSOR\HHVZLWKWKHVHFRQGLWLRQVLQDGYDQFH
:KHQ IOH[LEOH ZRUNLQJ WLPH LV LQWURGXFHG WKH HPSOR\HH VKDOO FKRRVH WKH WLPH ZKHQ KH VWDUWV DQG ILQLVKHV KLV ZRUNLQJ WLPH RQ LQGLYLGXDO GD\V ZLWKLQ FHUWDLQ EDQGV RI WLPH GHWHUPLQHG E\ KLV HPSOR\HU ³RSWLRQDO ZRUNLQJ WLPH´ LQ &]HFK ³YROLWHOQi SUDFRYQt GRED´ :LWKLQ WKHVH WZR EDQGV RI RSWLRQDO ZRUNLQJWLPHWKHUHLVDFRUHZRUNLQJWLPHIRUZKLFKWKHHPSOR\HHVKDOOEHUHTXLUHGWREHDWKLVZRUNSODFH KHUHDIWHU³EDVLFZRUNLQJWLPH´LQ&]HFK³]iNODGQtSUDFRYQtGRED´
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
6HFWLRQE
)RUPVRI)OH[LEOH:RUNLQJ7LPH
)OH[LEOHZRUNLQJWLPHPD\WDNHWKHIRUPRI
D DIOH[LEOHZRUNLQJGD\LQZKLFKWKHHPSOR\HHKLPVHOIFKRRVHVZKHQWREHJLQKLVVKLIWDQGRQWKH ZRUNLQJGD\LQTXHVWLRQLVREOLJHGWRZRUNWKHIXOOVKLIWIDOOLQJRQWKDWZRUNLQJGD\LQDFFRUGDQFH ZLWKWKHZHHNO\VFKHGXOHRIVKLIWVGHWHUPLQHGE\WKHHPSOR\HU
E DIOH[LEOHZRUNLQJZHHNLQZKLFKWKHHPSOR\HHKLPVHOIFKRRVHVZKHQWREHJLQDQGILQLVKKLVVKLIWV DQGLQWKHZHHNLQTXHVWLRQLVREOLJHGWRZRUNWKHIXOOZHHNO\ZRUNLQJWLPH
F DIOH[LEOHIRXUZHHNSHULRGLQZKLFKWKHHPSOR\HHKLPVHOIFKRRVHVZKHQWREHJLQDQGILQLVKKLVVKLIWV DQGLQWKHSHULRGRIIRXUVXFFHVVLYHZHHNVLQTXHVWLRQLVREOLJHGWRZRUNWKHIXOOZRUNLQJWLPHIL[HG E\KLVHPSOR\HULQDFFRUGDQFHZLWKWKHZHHNO\ZRUNLQJWLPHIRUVXFKIRXUZHHNSHULRG
$Q\ZRUNGRQHZKLFKH[FHHGVWKHOHQJWKRIDVKLIWZKHQDIOH[LEOHZRUNLQJGD\VFKHGXOHLVXVHGRU
ZKLFKH[FHHGVWKHOHQJWKRIDIOH[LEOHZRUNLQJZHHNZKHQDIOH[LEOHZRUNLQJZHHNVFKHGXOHLVXVHGRU ZKLFKH[FHHGVDIRXUZHHNZRUNLQJSHULRGZKHQDVFKHGXOHRIDIRXUZHHNZRUNLQJSHULRGLVXVHGVKDOO QRW EH WDNHQ LQWR DFFRXQW XQOHVV LW LV RYHUWLPH ZRUN RU XQOHVV LW FRQFHUQV ZRUNLQJ RII LH ZRUN SHUIRUPHGLQOLHXRI DSDUWRIWKHHPSOR\HH VZRUNLQJWLPHZKHQKHGLGQRWZRUN
6HFWLRQF
,PSHGLPHQWVWR:RUNLQWKH&DVHRI)OH[LEOH:RUNLQJ7LPH
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
,IWKHUHDUHLPSHGLPHQWVWRZRUNRQWKHHPSOR\HU VVLGHDQGWKH\DIIHFWDQHPSOR\HH VVKLIWWKH\VKDOO EHUHJDUGHGDVZRUNSHUIRUPDQFHIRUHDFKLQGLYLGXDOGD\RQZKLFK
D DIOH[LEOHZRUNLQJGD\LVLQRSHUDWLRQXSWRWKHOHQJWKRIWKHHPSOR\HH VVKLIWRQWKHGD\FRQFHUQHG
E DIOH[LEOHZRUNLQJZHHNRUIRXUZHHNZRUNLQJSHULRGLVLQRSHUDWLRQXSWRWKHDYHUDJHOHQJWKRID ZRUNLQJVKLIWDVLWHQVXHVIURPWKHIL[HGRUUHGXFHGZRUNLQJWLPHRIWKHHPSOR\HHFRQFHUQHG
,IDQHPSOR\HHZDVQRWDWZRUNGXHWRLPSHGLPHQWVRQKLVVLGHIRUZKLFKKLVDEVHQFHZDVH[FXVHG >VXEVHFWLRQ ILUVWVHQWHQFHDIWHUWKHVHPLFRORQ @DQGKHGLGQRWZRUNIRUWKHZKROHSHULRGRIWKHGDLO\ ZRUNLQJWLPHZKHQDIOH[LEOHZRUNLQJGD\ZDVEHLQJRSHUDWHGRUKHGLGQRWZRUNIRUWKHZKROHSHULRGRI WKHZHHNO\ZRUNLQJWLPHZKHQDIOH[LEOHZHHNO\ZRUNLQJWLPHZDVEHLQJRSHUDWHGRUKHGLGQRWZRUNIRU WKHZKROHSHULRGRIWKHIRXUZHHNZRUNLQJWLPHZKHQDIRXUZHHNZRUNLQJWLPHZDVEHLQJRSHUDWHGKH VKDOOKDYHWRZRUNRIIWKHXQZRUNHGSDUWRIWKHZRUNLQJWLPHRQZRUNLQJGD\VE\WKHHQGRIWKHIROORZLQJ FDOHQGDUPRQWKXQOHVVKHDQGWKHHPSOR\HUDJUHHRQRWKHUWLPHIUDPHGXULQJZKLFKWKHHPSOR\HHZLOO ZRUNRIIWKHXQZRUNHGSDUW,IWKHHPSOR\HHFRXOGQRWZRUNRIIWKHXQZRUNHGSDUWRIWKHZRUNLQJWLPH ZLWKLQWKHWLPHIUDPHVWLSXODWHGLQWKHILUVWVHQWHQFHGXHWRLPSHGLPHQWVWRZRUNRQKLVVLGHKHVKDOOKDYH WRZRUNLWRIIDVVRRQDVSRVVLEOHDIWHUWKHVHLPSHGLPHQWVFHDVHWRDIIHFWKLPXQOHVVKHDQGWKHHPSOR\HU DJUHHRQRWKHUWLPHIUDPHGXULQJZKLFKWKHHPSOR\HHZLOOZRUNRIIWKHXQZRUNHGSDUW7KHZRUNLQJRII RIXQZRUNHGWLPHSXUVXDQWWRWKHILUVWDQGVHFRQGVHQWHQFHVPD\RQO\WDNHSODFHLQRSWLRQDOZRUNLQJWLPH XQOHVVRWKHUWLPHLVDJUHHGVXFKZRUNLVQRWUHJDUGHGDVRYHUWLPHZRUN
6HFWLRQG
2YHUWLPH:RUNLQWKH&DVHRI)OH[LEOH:RUNLQJ7LPH
2YHUWLPHZRUN>VHFWLRQ @VKDOOPHDQLQWKHFRQWH[WRI
D D IOH[LEOH ZRUNLQJ GD\ ZRUN SHUIRUPHG LQ H[FHVV RI WKH OHQJWK RI D VKLIW IDOOLQJ RQ VXFK D GD\ DFFRUGLQJWRWKHZHHNO\VFKHGXOHRIVKLIWVGHWHUPLQHGE\WKHHPSOR\HU
E DIOH[LEOHZRUNLQJZHHNRUIRXUZHHNZRUNLQJSHULRGZRUNSHUIRUPHGLQH[FHVVRIWKHOHQJWKRYHU WKHEDVLFZRUNLQJWLPHVFKHGXOHGIRUWKHGD\LQTXHVWLRQ
SURYLGHGWKDWWKHHPSOR\HHSHUIRUPHGZRUNLQH[FHVVRIWKHSUHVFULEHGZHHNO\ZRUNLQJWLPHDQGLQWKH FDVHRIRSHUDWLRQRIDIRXUZHHNZRUNLQJSHULRGSXUVXDQWWRVHFWLRQE F LQH[FHVVRIWKHZRUNLQJ WLPHSUHVFULEHGIRUWKHIRXUZHHNSHULRGLQTXHVWLRQ
,WVKDOOQRWEHUHJDUGHGDVRYHUWLPHZRUNLIDQHPSOR\HH
D E\KLVZRUNSXUVXDQWWRVXEVHFWLRQ RQO\IXOILOVKLVREOLJDWLRQWRZRUNWKHZHHNO\ZRUNLQJWLPH ZLWKLQWKHWLPHIUDPHRIWKHVDPHZHHNRUWKHIL[HGSUHVFULEHG ZRUNLQJWLPHZKLFKIDOOVLQDSHULRG RIIOH[LEOHIRXUZHHNZRUNLQJZLWKLQWKHWLPHIUDPHRIWKLVSHULRG
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
6HFWLRQ
5HGXFHG:RUNLQJ7LPHDQG2WKHU$GMXVWPHQWVWR:RUNLQJ7LPH
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
,I WKH HPSOR\HU V RSHUDWLRQV DOORZ KH PD\ DW WKH UHTXHVW RI KLV HPSOR\HH IRU JURXQGV RI WKH HPSOR\HH V KHDOWK RU RWKHU VHULRXV JURXQGV SHUPLW KLP DQRWKHU VXLWDEOH DGMXVWPHQW WR WKH SUHVFULEHG ZHHNO\ ZRUNLQJ WLPH RU UHGXFHG VKRUWHU ZRUNLQJ WLPH RU IRU WKH VDPH UHDVRQV DQGDWWKHHPSOR\HH V UHTXHVWKHPD\DJUHHWRWKLVLQWKHHPSOR\PHQWFRQWUDFWZLWKVXFKHPSOR\HH
:LWKWKHHPSOR\HH VFRQVHQWZRUNLQJWLPHSXUVXDQWWRWKHSUHFHGLQJVXEVHFWLRQPD\H[FHSWLRQDOO\ H[FHHGQLQHKRXUVRQDQLQGLYLGXDOGD\>VHFWLRQ @DQGWKLVXQHYHQVSUHDGRIZRUNLQJWLPHVKDOOQRW EHWLHGWRWKHFRQGLWLRQVSXUVXDQWWRVHFWLRQ
%HJLQQLQJDQG(QGRI:RUNLQJ7LPH 6HFWLRQ
7KHHPSOR\HUVKDOOIL[WKHEHJLQQLQJDQGHQGRIZRUNLQJWLPHDQGWKHVFKHGXOHRIZRUNLQJVKLIWVDIWHU FRQVXOWLQJWKHFRPSHWHQWWUDGHXQLRQRUJDQL]DWLRQRUJDQERG\
$IWHU FRQVXOWLQJ WKH FRPSHWHQW WUDGH XQLRQ RUJDQL]DWLRQ ERG\ WKH HPSOR\HU PD\ GLYLGH ZRUNLQJ WLPH RQ D VKLIW LQWR WZR SDUWV LQ DJULFXOWXUH WUDQVSRUWDWLRQ FRPPXQLFDWLRQV FXOWXUDO LQVWLWXWLRQV DQG WUDGHZRUNLQJWLPHRQRQHVKLIWPD\DOVREHGLYLGHGLQWKLVZD\LQWRPRUHSDUWV$WWKHVDPHWLPHWKH HPSOR\HUVKDOOFRQVLGHUWKHSRVVLELOLWLHVRIUHJXODUVFKHGXOHG WUDQVSRUWIRUHPSOR\HHVWRWKHLUZRUNDQG WKHVXSSO\RIHOHFWULFLW\JDVDQGKHDWLQJVWHDPDQGWKHIDFWWKDWVXFKDGLYLVLRQRIZRUNLQJWLPHVKRXOG QRWFRQIOLFWZLWKWKHLQWHUHVWVRIWKHSRSXODWLRQ
6HFWLRQ
(PSOR\HHVDUHREOLJHGWREHDWWKHLUZRUNSODFHDWWKHEHJLQQLQJRIWKHLUZRUNLQJWLPHDQGWROHDYHWKH
ZRUNSODFHRQO\DIWHUWKHLUZRUNLQJWLPHKDVHQGHG
$FROOHFWLYHEDUJDLQLQJDJUHHPHQWRULQWHUQDOUHJXODWLRQVPD\GHWHUPLQHKRZWKHWLPHUHTXLUHGIRU ZDVKLQJDIWHUWKHHQGRIZRUNFDQEHLQFOXGHGLQWRZRUNLQJWLPH7KLVVKDOODOVRDSSO\WRHPSOR\HUVQRW HQJDJHGLQEXVLQHVVHQWUHSUHQHXULDO DFWLYLW\
6HFWLRQ
:RUN%UHDNV
$IWHUDQHPSOR\HHKDVGRQHDPD[LPXPRIIRXUDQGDKDOIKRXUVRIFRQWLQXRXVZRUNKLVHPSOR\HULV REOLJHG WR JLYH KLP D EUHDN IURP ZRUN IRU IRRG DQG UHVW ODVWLQJ DW OHDVW PLQXWHV ,I DQ HPSOR\HH SHUIRUPV ZRUN WKDW FDQQRW EH LQWHUUXSWHGWKHHPSOR\HHPXVWEHSURYLGHGZLWKDUHDVRQDEOHDPRXQWRI WLPH IRU IRRG DQG UHVW ZLWKRXW WKH RSHUDWLRQV RU ZRUN EHLQJ LQWHUUXSWHG DGROHVFHQWV PXVW DOZD\V EH JUDQWHGZRUNEUHDNVIRUIRRGDQGUHVWDFFRUGLQJWRWKHILUVWVHQWHQFH
7KH HPSOR\HU PD\ IL[ DQ DGHTXDWH EUHDN IRU IRRG DIWHU FRQVXOWLQJ WKH FRPSHWHQW WUDGH XQLRQ RUJDQL]DWLRQERG\
7KHHPSOR\HUVKDOOIL[WKHEHJLQQLQJDQGHQGRIWKLVEUHDNDIWHUFRQVXOWLQJWKHFRPSHWHQWWUDGHXQLRQ RUJDQL]DWLRQERG\ $EUHDNIRUIRRGDQGUHVWVKDOOQRWEHSURYLGHGDWWKHEHJLQQLQJRUHQGRIDVKLIW
:RUNEUHDNVZKLFKDUHSURYLGHGIRUIRRGDQGUHVWVKDOOQRWEHSDUWRIZRUNLQJWLPHLHVKDOOQRWEH FRQVLGHUHGDVZRUNLQJWLPH
6HFWLRQ
8QLQWHUUXSWHG5HVWEHWZHHQ7ZR6KLIWV
$QHPSOR\HULVREOLJHGWRVFKHGXOHZRUNLQJWLPHVRWKDWIURPWKHHQGRIRQHVKLIWXQWLOWKHEHJLQQLQJ RIWKHQH[WRQHHPSOR\HHVZLOOKDYHDQXQLQWHUUXSWHGSHULRGRIUHVWRIDWOHDVWKRXUVLQVXFFHVVLYH KRXUV
,QWKHFDVHRIDQHPSOR\HHRYHU\HDUVRIDJHKLVUHVWSHULRGSXUVXDQWWRVXEVHFWLRQ PD\EH UHGXFHG WR D PLQLPXP RI HLJKW FRQVHFXWLYH KRXUV LQ KRXUV SURYLGHG WKDW KLV QH[W UHVW SHULRG LV H[WHQGHG E\ WKH DPRXQW RI WKH WLPH E\ ZKLFK KLV SUHFHGLQJ UHVW SHULRG ZDV VKRUWHQHG ZKHQ VXFK HPSOR\HHLVLQYROYHGLQ D FRQWLQXRXVRSHUDWLRQVXQHYHQO\VFKHGXOHGZRUNLQJWLPHRURYHUWLPHZRUN
E DJULFXOWXUH
F SXEOLFFDWHULQJFXOWXUDOHYHQWVRURWKHUSXEOLFVHUYLFHV
G XUJHQWUHSDLUZRUNQHFHVVDU\WRDYHUWDWKUHDWWRWKHOLYHVRUKHDOWKRIHPSOR\HHV
H GHDOLQJZLWKQDWXUDOGLVDVWHUVRUVLPLODUH[WUDRUGLQDU\HYHQWV
7KHUHVWSHULRGRIDZRPDQZKRZRUNVLQFRQWLQXRXVRSHUDWLRQVPD\EHUHGXFHGRQO\WRFRQVHFXWLYH KRXUV LQ KRXUV SURYLGHG WKDW KHU QH[W UHVW SHULRG LV H[WHQGHG E\ WKH DPRXQW RI WLPH E\ ZKLFK KHU SUHFHGLQJUHVWSHULRGZDVUHGXFHG
5HVW'D\V
6HFWLRQ
5HVWGD\VDUHWKHGD\VRQZKLFKDQHPSOR\HH VZHHNO\SHULRGRIXQLQWHUUXSWHGUHVWIDOOVDQGSXEOLF KROLGD\V
$Q HPSOR\HU PD\ RQO\ UHTXLUH DQ HPSOR\HH WR ZRUN RQ D UHVW GD\ H[FHSWLRQDOO\ DQG RQO\ DIWHU FRQVXOWLQJWKHFRPSHWHQWWUDGHXQLRQRUJDQL]DWLRQERG\
2QGD\VZKHQWKHZHHNO\SHULRGRIXQLQWHUUXSWHGUHVWIDOOVWKHHPSOR\HUPD\UHTXLUHDQHPSOR\HHWR GRRQO\ZRUNZKLFKFDQQRWEHGRQHRQZRUNLQJGD\V D XUJHQWUHSDLUZRUN
E ORDGLQJDQGXQORDGLQJ
F LQYHQWRU\WDNLQJDQGWKHFORVLQJRIDFFRXQWV
G UHSODFHPHQWRIDQDEVHQWHPSOR\HHRQDVKLIWLQYROYLQJFRQWLQXRXVRSHUDWLRQV
H DYHUWLQJDWKUHDWWROLIHRUKHDOWKRUZRUNUHODWLQJWRQDWXUDOGLVDVWHUVRUVLPLODUH[WUDRUGLQDU\HYHQWV
I ZRUNUHODWLQJWRWKHQHFHVVLWLHVRIOLIHKHDOWKRUWKHSRSXODWLRQ VFXOWXUDOQHHGV
J ZRUNE\WKHFUHZVRIYHVVHOV
K IHHGLQJDQGFDUHRIIDUPDQLPDOV
2QSXEOLFKROLGD\VDQHPSOR\HUPD\UHTXLUHDQHPSOR\HHWRGRRQO\ZRUNZKLFKWKHHPSOR\HUFDQ UHTXLUHWREHGRQHRQGD\VRIXQLQWHUUXSWHGUHVWRUZRUNRQDFRQWLQXRXVRSHUDWLRQDQGZRUNZKLFKLV QHFHVVDU\IRUSURWHFWLRQRIWKHHPSOR\HU VSUHPLVHV
6HFWLRQ
:HHNO\8QLQWHUUXSWHG5HVW3HULRGV
7KH HPSOR\HU VKDOO VFKHGXOH ZRUNLQJ WLPH LQ VXFK D PDQQHU WKDW HPSOR\HHV KDYH RQH PLQLPXP XQLQWHUUXSWHG UHVW SHULRG RI KRXUV LQ HDFKSHULRGRIVHYHQFRQVHFXWLYHFDOHQGDUGD\V,QWKHFDVHRI DGROHVFHQWHPSOR\HHVVXFKZHHNO\XQLQWHUUXSWHGUHVWSHULRGPD\QRWEHOHVVWKDQKRXUV
,I RSHUDWLRQV VR DOORZ WKH HPSOR\HU VKDOO VFKHGXOH D ZHHNO\ XQLQWHUUXSWHG UHVW SHULRG IRU DOO HPSOR\HHVWRLQYROYHWKHVDPHGD\DQGLQVXFKDPDQQHUWKDWLWVKDOOLQFOXGH6XQGD\
,QFDVHVLQYROYLQJ
D WKHQHFHVVLW\WRVXEVWDQWLDOO\LQFUHDVHWKHQXPEHURIHPSOR\HHVIRUDWHPSRUDU\SHULRGQRWH[FHHGLQJ ILYHVXFFHVVLYHPRQWKVLQDFDOHQGDU\HDU
E ZRUNLQFRPPXQLFDWLRQVFXOWXUDOHVWDEOLVKPHQWVKHDOWKFDUHDQGVRFLDOZHOIDUHHVWDEOLVKPHQWVDQG FRQWLQXRXVXQLQWHUUXSWHG RSHUDWLRQV
F ZRUN ZKHUH ZRUNLQJ WLPH LV XQHYHQO\ VFKHGXOHG RU ZRUN ZKLFK LV EHLQJ GRQH WR DYHUW WKH FRQVHTXHQFHV RI QDWXUDO GLVDVWHUV RU WR GHDO ZLWK FLYLO HQJLQHHULQJ EUHDNGRZQV RU EUHDNGRZQV LQ WHFKQRORJLFDOSURFHVVHVZKLFKFDQQRWEHLQWHUUXSWHG
WKHHPSOR\HUPD\DIWHUFRQVXOWLQJWKHFRPSHWHQWWUDGHXQLRQRUJDQL]DWLRQERG\ VFKHGXOHWKHZRUNLQJ WLPHRIHPSOR\HHVZKRDUHRYHU\HDUVRIDJHLQVXFKDPDQQHUWKDWWKHLUZHHNO\SHULRGRIXQLQWHUUXSWHG UHVWZLOOEHDWOHDVWKRXUVDQGWKHPLQLPXPWRWDOSHULRGRIUHVWLQWZRZHHNVZLOOEHKRXUV
,W PD\ EH DJUHHG LQ D FROOHFWLYH EDUJDLQLQJ DJUHHPHQW FRYHULQJ HPSOR\HHV LQ DJULFXOWXUH RU LQ DQ DJUHHPHQW ZLWK DQ HPSOR\HH ZRUNLQJ LQ DJULFXOWXUH WKDW XQLQWHUUXSWHG UHVW ZLOO EH SURYLGHG LQ VXFK D PDQQHUWKDWWKHWRWDOSHULRGRIXQLQWHUUXSWHGUHVWZLOOEHQROHVVWKDQKRXUVLQWKUHHZHHNV
6HFWLRQ
:KHQ VFKHGXOLQJ ZRUNLQJ WLPH SXUVXDQW WR WKH SUHFHGLQJ SURYLVLRQV LW LV QHFHVVDU\ WR WDNH LQWR FRQVLGHUDWLRQWKHHQHUJ\DQGWUDQVSRUWDWLRQVLWXDWLRQWKHHPSOR\HUPXVWWKHUHIRUHIROORZWKHLQVWUXFWLRQV RIWKHFRPSHWHQWVWDWHDGPLQLVWUDWLYHDXWKRULWLHVLVVXHGDIWHUFRQVXOWDWLRQVZLWKWKHFRPSHWHQWWUDGHXQLRQ RUJDQL]DWLRQERG\ DQGZLWKUHJDUGWRUHJXODUWUDQVSRUWRIHPSOR\HHVDQGVXSSOLHVRIHOHFWULFLW\JDVDQG KHDWLQJVWHDP
6HFWLRQ
5HFRUGVRI:RUNLQJ7LPH
7KHHPSOR\HUVKDOONHHSUHFRUGVRILQGLYLGXDOHPSOR\HHV ZRUNLQJWLPHRYHUWLPHZRUNVWDQGE\DQG QLJKWZRUN$WWKHUHTXHVWRIDQHPSOR\HHWKHHPSOR\HUVKDOOHQDEOHWKHHPSOR\HHWRLQVSHFWVXFKUHFRUGV RIKLVZRUNLQJWLPH
6HFWLRQ 6WDQGE\
6WDQGE\VKDOOEHFRQGLWLRQDORQWKHHQYLVDJHGSHUIRUPDQFHRIXUJHQWZRUNRXWVLGHWKHIUDPHZRUNRI DQHPSOR\HH VZRUNLQJWLPH6WDQGE\PD\WDNHSODFHDWWKHZRUNSODFHRUDQRWKHUDJUHHGSODFH
7KHHPSOR\HUPD\DJUHHVWDQGE\ZLWKKLVHPSOR\HHDWWKHZRUNSODFHLQDPD[LPXPRIKRXUVSHU FDOHQGDU\HDU+HPD\DJUHHVWDQGE\ZLWKKLVHPSOR\HHDWDQRWKHUDJUHHGSODFHDQGKHPD\UHTXLUHWKH HPSOR\HHWRVWDQGE\IRUZRUNZLWKLQWKHIUDPHZRUNRIWKHDJUHHGVWDQGE\7KHVFRSHRIVWDQGE\DWWKH ZRUNSODFHRUDQRWKHUDJUHHGSODFHPD\EHUHGXFHGLQDQHQWHUSULVHFROOHFWLYHEDUJDLQLQJDJUHHPHQW
7KHHPSOR\HHLVHQWLWOHGWRDZDJHIRUZRUNGRQHGXULQJVWDQGE\ZRUNGRQHZLWKLQWKHIUDPHZRUN RIVWDQGE\ZKLFKH[FHHGVWKHSUHVFULEHGZRUNLQJWLPHVKDOOEHRYHUWLPHDQGLWVKDOOEHWDNHQLQWRDFFRXQW UHJDUGLQJWKHOLPLWVRQRYHUWLPHZRUN
:KHQQRZRUNLVGRQHGXULQJDSHULRGRIVWDQGE\LWVKDOOQRWEHFRXQWHGDVZRUNLQJWLPHKRZHYHU WKHHPSOR\HHRQVWDQGE\LVHQWLWOHGWRUHPXQHUDWLRQLQDFFRUGDQFHZLWKDQRWKHU$FW1RWH
'LYLVLRQ
2YHUWLPHDQG1LJKW:RUN 6HFWLRQ
2YHUWLPHZRUNLQJPD\RQO\EHUHTXLUHGE\DQHPSOR\HULQH[WUDRUGLQDU\FDVHVZKHQWKHUHDUHVHULRXV RSHUDWLRQDO JURXQGV IRU LW RYHUWLPH ZRUN PD\ HYHQ EH UHTXLUHG GXULQJ DQ HPSOR\HH V SHULRG RI XQLQWHUUXSWHGUHVWEHWZHHQWZRVKLIWVDQGLQWKHFRQGLWLRQVSXUVXDQWWRVHFWLRQ WR LWPD\HYHQEH UHTXLUHGGXULQJDQHPSOR\HH VUHVWGD\V:KHQDQHPSOR\HHLVUHTXLUHGWRZRUNRYHUWLPHE\KLVHPSOR\HU LWPD\QRWH[FHHGPRUHWKDQHLJKWKRXUVLQLQGLYLGXDOZHHNVDQGDWRWDORIKRXUVLQWKHFDOHQGDU\HDU
2YHUWLPHZRUNLQH[FHVVRIWKHOLPLWVSXUVXDQWWRVXEVHFWLRQ PD\RQO\EHSHUIRUPHGH[FHSWLRQDOO\ DQGRQFRQGLWLRQWKDWWKHHPSOR\HHDJUHHVWRGRLW7KHWRWDOQXPEHURIKRXUVRIRYHUWLPHZRUNPD\QRW H[FHHGDQDYHUDJHRIHLJKWKRXUVSHUZHHNDQHQWHUSULVHFROOHFWLYHEDUJDLQLQJDJUHHPHQWPD\VWLSXODWHD ORZHUOLPLWRQYROXQWDU\RYHUWLPHZRUNWKDQWKHVWDWXWRU\OLPLW 7KH QXPEHU RI WKH PD[LPXP SHUPLVVLEOH RYHUWLPH ZRUN VKDOO QRW LQFOXGH DQ HPSOR\HH V RYHUWLPH
ZRUNIRUZKLFKFRPSHQVDWRU\WLPHRIILQOLHXRIVXFKRYHUWLPHZRUN LVSURYLGHGWRWKHHPSOR\HH
$SHULRGLQZKLFKRYHUWLPHZRUNPD\QRWH[FHHGDQDYHUDJHRIHLJKWKRXUVSHUZHHNPD\EHIL[HGLQ DFROOHFWLYHEDUJDLQLQJDJUHHPHQWRUDJUHHGEHWZHHQWKHHPSOR\HHDQGKLVHPSOR\HUDQGWKHOHQJWKRI VXFKSHULRGPD\QRWEHPRUHWKDQIRXUFRQVHFXWLYHFDOHQGDUPRQWKVLQWKHFDVHRIUHJXODUO\VFKHGXOHG ZRUN RU VL[ FRQVHFXWLYH FDOHQGDU PRQWKV LQ WKH FDVH RI XQHYHQO\ VFKHGXOHG ZRUN $ FROOHFWLYH EDUJDLQLQJ DJUHHPHQW PD\ IL[ D SHULRG LQ ZKLFK DYHUDJH ZHHNO\ RYHUWLPH ZRUN PD\ QRW H[FHHG HLJKW KRXUVDQGWKHOHQJWKRIVXFKSHULRGPD\H[WHQGXSWRFRQVHFXWLYHFDOHQGDUPRQWKV
2YHUWLPHZRUNPD\QRWEHFDUULHGRXWE\HPSOR\HHVZKRVHZRUNLQJWLPHKDVEHHQVKRUWHQHGGXHWR KHDOWKJURXQGVDQGZLWKRXWDQ\UHGXFWLRQLQZDJHV
6HFWLRQ 5HSHDOHG
6HFWLRQ
$IWHUFRQVXOWLQJWKHFRPSHWHQWWUDGHXQLRQRUJDQL]DWLRQERG\ WKHHPSOR\HUZLOOGHWHUPLQHWKHWRWDO DPRXQW RI RYHUWLPH ZRUN DW KLV HQWHUSULVH LQ LQGLYLGXDO RUJDQL]DWLRQDO XQLWV DQGRU DW SDUWLFXODU ZRUNSODFHVDQGDQ\SRVVLEOHH[FHHGLQJRIWKHOLPLWV
6HFWLRQ
1LJKWZRUNVKDOOEHZRUNSHUIRUPHGGXULQJQLJKWWLPHZKLFKLVEHWZHHQSPDQGDP
)RU WKH SXUSRVHV RI WKLV &RGH ³DQ HPSOR\HH ZRUNLQJ DW QLJKW´ D QLJKW ZRUNHU VKDOO PHDQ DQ HPSOR\HH ZKR UHJXODUO\ ZRUNV DW OHDVW WKUHH KRXUV RI KLV UHJXODU ZRUNLQJ WLPH LQ D SHULRG RI FRQVHFXWLYHKRXUVGXULQJQLJKWWLPHWKLVSURYLVLRQVKDOOQRWDIIHFWVWDWXWRU\SURYLVLRQVRIRWKHUODZV1RWH
7KH ZRUNLQJ WLPH RI DQ HPSOR\HH ZRUNLQJ DW QLJKW PD\ QRW H[FHHG HLJKW KRXUV LQ D SHULRG RI FRQVHFXWLYH KRXUV LI WKLV LV QRW SRVVLEOH IRU RSHUDWLRQDO UHDVRQV WKH HPSOR\HU VKDOO VFKHGXOH WKH SUHVFULEHGZHHNO\ZRUNLQJWLPHLQVXFKDPDQQHUWKDWWKHDYHUDJHOHQJWKRIDVKLIWGRHVQRWH[FHHGHLJKW KRXUVLQDPD[LPXPSHULRGRIVL[FRQVHFXWLYHFDOHQGDUPRQWKVZKHQFDOFXODWLRQRIWKHDYHUDJHOHQJWKRI WKHVKLIWRIDQHPSOR\HHZRUNLQJDWQLJKWLVEDVHGRQDILYHGD\ZRUNLQJZHHN
7KHHPSOR\HUVKDOOHQVXUHWKDWDQHPSOR\HHZRUNLQJDWQLJKWLVH[DPLQHGE\DGRFWRUSK\VLFLDQ
D EHIRUHDVVLJQLQJVXFKHPSOR\HHWRQLJKWZRUN
E RQDUHJXODUEDVLVDVQHFHVVDU\EXWDWOHDVWRQFHD\HDU
F DWDQ\WLPHZKHQVXFKHPSOR\HHLVDVVLJQHGWRQLJKWZRUNDQGKHDOWKSUREOHPVRFFXUDVDUHVXOWRIKLV ZRUNLQJDWQLJKWDQGWKHHPSOR\HHUHTXHVWVLW
7KHHPSOR\HHPD\QRWEHDVNHGWRUHLPEXUVHWKHFRVWRIVXFKKHDOWKFDUH
(PSOR\HUV DUH UHTXLUHG WR FRQVXOW UHJXODUO\ WKH FRPSHWHQW WUDGH XQLRQ RUJDQ ERG\ RQ LVVXHV RI VDIHW\ DQG WKH SURWHFWLRQ RI KHDOWK DW ZRUN DQG WKH RUJDQL]DWLRQ RI QLJKW ZRUN DQG WR SURYLGH VXLWDEOH VRFLDOVHUYLFHVIRUHPSOR\HHVZRUNLQJDWQLJKWHVSHFLDOO\UHIUHVKPHQWV
(PSOR\HUVDUHUHTXLUHGWRSURYLGHZRUNSODFHVZKHUHQLJKWZRUNLVSHUIRUPHGZLWKILUVWDLGPHDQV DQGWRHQVXUHWKDWWKHZRUNSODFHLVVRHTXLSSHGWKDWHPHUJHQF\PHGLFDODVVLVWDQFHFDQEHVXPPRQHGLI QHHGHG
6HFWLRQD
,Q WKH FDVH WKDW PHDVXUHV UHODWLQJ WR FROOHFWLYH UHJXODWLRQ RI ZRUNLQJ WLPH >VHFWLRQV D DQG DQG @LQVWUXFWLRQVWRZRUNRQUHVWGD\V>VHFWLRQ @DQGWRGRRYHUWLPHZRUN VHFWLRQ DUH LQFOXGHG LQ FROOHFWLYH EDUJDLQLQJ DJUHHPHQWV WKHLU LPSOHPHQWDWLRQ VKDOO QRW UHTXLUH FRQVXOWDWLRQZLWKWKHFRPSHWHQWWUDGHXQLRQRUJDQL]DWLRQRUJDQERG\
'LYLVLRQ /HDYH
6HFWLRQ
8QGHUGHWHUPLQHGFRQGLWLRQVDQHPSOR\HHLVHQWLWOHGWR
D DQQXDOOHDYHRUDSURSRUWLRQDWHSDUWRILW
E OHDYHEDVHGRQWKHQXPEHURIGD\VZRUNHG
F VXSSOHPHQWDU\OHDYH G DGGLWLRQDOOHDYH
$QQXDO/HDYH 6HFWLRQ
$Q HPSOR\HH ZKR GXULQJ KLV FRQWLQXRXV XQLQWHUUXSWHG HPSOR\PHQW UHODWLRQVKLS ZLWK WKH VDPH HPSOR\HUSHUIRUPHGZRUNIRUWKLVHPSOR\HUIRUOHDVWGD\VLQRQHFDOHQGDU\HDULVHQWLWOHGWRKLVDQQXDO OHDYHLHKLVOHDYHIRUVXFKFDOHQGDU\HDU RUWRDSURSRUWLRQDWHSDUWRIKLVDQQXDOOHDYHLQWKHFDVHWKDW KLVHPSOR\PHQWUHODWLRQVKLSGLGQRWODVWFRQWLQXRXVO\IRUWKHZKROHFDOHQGDU\HDU(DFKGD\RQZKLFKDQ HPSOR\HHZRUNVPRVWRIKLVVKLIWLVUHJDUGHGDVDGD\ZRUNHGSDUWVRIVKLIWVZRUNHGRQGLIIHUHQWGD\VDUH QRWDJJUHJDWHG
,QWKHFDVHRIDFRQWLQXRXVHPSOR\PHQWUHODWLRQVKLSZLWKWKHVDPHHPSOR\HUWKHSURSRUWLRQDWHSDUW VKDOO EH RQHWZHOIWK RI WKH DQQXDO OHDYH HQWLWOHPHQW SHU ZKROH PRQWK RI HPSOR\PHQW GXULQJ WKH VDPH HPSOR\PHQWUHODWLRQVKLS
6HFWLRQ
7KHEDVLFOHDYHSHULRGVKDOOEHIRXUZHHNVSHU\HDU
(PSOR\HUV ZKR DUH HQJDJHG LQ EXVLQHVV DFWLYLWLHV PD\ LQ D FROOHFWLYH EDUJDLQLQJ DJUHHPHQW RU LQ WKHLULQWHUQDOUHJXODWLRQVH[WHQGWKHLUHPSOR\HHV OHDYHE\DGGLWLRQDOZHHNVRYHUDQGDERYHWKHSHULRGRI OHDYHSXUVXDQWWRVXEVHFWLRQ (PSOR\HHVRIHPSOR\HUVZKRDUHQRWHQJDJHGLQEXVLQHVVDFWLYLWLHVDUH HQWLWOHGWRRQHPRUHZHHNRIOHDYHWKDQWKDWVWDWHGLQVXEVHFWLRQ
%\LWVGHFUHHWKH*RYHUQPHQWFDQSURYLGHIRUDQH[WHQVLRQRIOHDYHXQGHUWKHSUHFHGLQJVXEVHFWLRQLQ WKHFDVHRIHPSOR\HHVRIHPSOR\HUVZKRDUHQRWHQJDJHGLQEXVLQHVVDFWLYLWLHV
/HDYHIRUSHGDJRJLFDOHPSOR\HHVDQGDFDGHPLFHPSOR\HHVRIXQLYHUVLWLHVVKDOOEHHLJKWZHHNVSHU FDOHQGDU\HDU1RWH
:KHQ WDNLQJ KLV DQQXDO OHDYH DQ HPSOR\HH ZKRVH ZRUNLQJ WLPH LV XQHYHQO\ VFKHGXOHG RYHU LQGLYLGXDOZHHNVRUWKHHQWLUH\HDUVHFWLRQ LVHQWLWOHGWRKDYHVRPDQ\GD\VRIOHDYHDVLVWKHQXPEHU
RIZRUNLQJGD\VSHUKLVWLPHRIOHDYHEDVHGRQWKHDQQXDODYHUDJH
6HFWLRQ 5HSHDOHG
6HFWLRQ
/HDYHIRU'D\V:RUNHG
(PSOR\HHV ZKR DUH QRW HQWLWOHG WR DQQXDO OHDYH RU D SURSRUWLRQDWH SDUW RI LW GXH WR WKH IDFW WKDW GXULQJWKHFDOHQGDU\HDUWKH\GLGQRWZRUNIRUDWOHDVWGD\VIRUWKHVDPHHPSOR\HUDUHHQWLWOHGWROHDYH LQUHVSHFWRIWKHGD\VWKH\ZRUNHGLQDQDPRXQWHTXDOWRRQHWZHOIWKRIWKHOHDYHIRUDFDOHQGDU\HDUIRU HYHU\GD\VZRUNHGLQWKHFDOHQGDU\HDULQTXHVWLRQ>VHFWLRQ VHFRQGVHQWHQFH @
6HFWLRQ
6XSSOHPHQWDU\/HDYHDQG$GGLWLRQDO/HDYH
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
)RUWKHSXUSRVHVRIVXSSOHPHQWDU\OHDYHHPSOR\HHVFDUU\LQJRXWSDUWLFXODUO\KDUGDUGXRXV ZRUNRU ZRUNZKLFKLVKDUPIXOWRWKHLUKHDOWKVKDOOPHDQ
D HPSOR\HHV ZKR ZRUN SHUPDQHQWO\ LQ KHDOWK FDUH HVWDEOLVKPHQWV RU DW ZRUNSODFHV ZKHUH WKH\ ORRN DIWHUWKRVHVXIIHULQJIURPDFRQWDJLRXVIRUPRIWXEHUFXORVLV
E HPSOR\HHVZKRZRUNDWZRUNSODFHVZKHUHWKHUHDUHLQIHFWLRXVPDWHULDOVDQGZKRDUHH[SRVHGWRD GLUHFWULVNRILQIHFWLRQ
F HPSOR\HHVZKRDUHH[SRVHGWRDVLJQLILFDQWH[WHQWRIWKHDGYHUVHHIIHFWVRILRQL]LQJUDGLDWLRQZKLOHDW ZRUN
G HPSOR\HHVZKRIRUDWOHDVWKDOIRIWKHLUZHHNO\ZRUNLQJWLPHORRNDIWHUWKHPHQWDOO\VLFNRUDIIOLFWHG
H HPSOR\HHVZKRIRUDWOHDVWKDOIRIWKHLUZHHNO\ZRUNLQJWLPHDUHHLWKHUUHVSRQVLEOHIRUWKHXSEULQJLQJ RI\RXWKXQGHUGLIILFXOWFRQGLWLRQVRUZKRZRUNDVKHDOWKFDUHVWDIILQWKH&]HFK5HSXEOLF V3ULVRQ 6HUYLFH
I HPSOR\HHV ZKR ZRUN FRQWLQXRXVO\ IRU DW OHDVW D \HDU LQ WURSLFDO DUHDV RU RWKHU DUHDV KD]DUGRXV WR KHDOWK DQ HPSOR\HH ZKR KDV FRPSOHWHG RQH \HDU RI FRQWLQXRXV ZRUN LQ WURSLFDO DUHDV RU DUHDV KD]DUGRXVWRKHDOWKVKDOODOUHDG\EHHQWLWOHGWRVXSSOHPHQWDU\OHDYHIRUVXFK\HDU
J HPSOR\HHV LQYROYHG LQ SDUWLFXODUO\ KD]DUGRXV ZRUN GXULQJ ZKLFK WKH\ DUH H[SRVHG WR WKH KDUPIXO HIIHFWVRISK\VLFDORUFKHPLFDODJHQWVWRVXFKDQH[WHQWWKDWWKLVPD\KDYHDQDGYHUVHLPSDFWRQWKHLU KHDOWK
K HPSOR\HHVRIWKH&]HFK5HSXEOLF V3ULVRQ6HUYLFHZKRIRUDWOHDVWKDOIRIWKHLUZHHNO\ZRUNLQJWLPH
DUHLQGLUHFWFRQWDFWZLWKDFFXVHGSHUVRQVKHOGLQFXVWRG\RUFRQYLFWV
7KH 0LQLVWU\ RI /DERXU DQG 6RFLDO $IIDLUV DFWLQJ LQ DJUHHPHQW ZLWK WKH 0LQLVWU\ RI +HDOWK VKDOO GHWHUPLQH LQ D GHFUHH WKH W\SHV RI ZRUN ZKLFK DUH SDUWLFXODUO\ KDUG DUGXRXV RU KD]DUGRXV WR KHDOWK DORQJ ZLWK WKH ZRUNSODFHV DQGDUHDVUHJLRQV ZKHUHVXFKZRUNLVSHUIRUPHGDWWKHVDPHWLPHLWPD\ GHWHUPLQHLQPRUHGHWDLOWKHJURXSRIHPSOR\HHVZKRZLOOEHJUDQWHGVXSSOHPHQWDU\OHDYHDQGVWLSXODWH WKHW\SHDQGVFRSHRIWKHFRQGLWLRQVZKLFKZLOOVXEVWDQWLDWHWKHJUDQWLQJRIVXFKOHDYH
(PSOR\HHV ZKRVH ZRUNLQJ WLPH LV VFKHGXOHG XQHYHQO\ SXUVXDQW WR VHFWLRQ RU RWKHU HPSOR\HHV ZKRVHZRUNVXEVWDQWLDOO\GHSHQGVRQZHDWKHUFRQGLWLRQVVKDOOEHHQWLWOHGWRDQDGGLWLRQDOWZRGD\V OHDYH XS WR D PD[LPXP RI RQH ZHHN IRU HYHU\ ZHHN RI WKHLU DQQXDO OHDYH ZKLFK WKH\ WDNH LQ D SHULRG RI UHGXFHGZRUNUHTXLUHPHQWV7KHFRPSHWHQWFHQWUDODXWKRULW\PD\VWLSXODWHLQVWDWXWRU\SURYLVLRQVZKDWLV WR EH FRQVLGHUHG DV D SHULRG RI UHGXFHG ZRUN UHTXLUHPHQWV XQWLO VXFK GHFUHH LV LVVXHG ³D SHULRG RI UHGXFHGZRUNUHTXLUHPHQWV´FDQEHGHILQHGLQDKLJKHUOHYHOFROOHFWLYHEDUJDLQLQJDJUHHPHQW
-RLQW3URYLVLRQVRQ/HDYH 6HFWLRQ
$ZHHNRIOHDYHVKDOOPHDQVHYHQFRQVHFXWLYHFDOHQGDUGD\V
7KH WHUPLQDWLRQ RI DQ HPSOR\HH V SUHYLRXV HPSOR\PHQW UHODWLRQVKLS LPPHGLDWHO\ IROORZHG E\ KLV WDNLQJXSDQHZHPSOR\PHQWUHODWLRQVKLSZLWKWKHVDPHHPSOR\HUVKDOOQRWEHUHJDUGHGDVDQLQWHUUXSWLRQ RIKLVHPSOR\PHQWUHODWLRQVKLS
6HFWLRQ
,IDQHPSOR\HH VOHDYHLVFXUWDLOHGKHVKDOOORVHKLVHQWLWOHPHQWWRWKDWSDUWRIWKHOHDYHE\ZKLFKLW ZDVFXUWDLOHG
7KH*RYHUQPHQWVKDOOGHWHUPLQHLQDGHFUHHWKHFRQGLWLRQVXQGHUZKLFKOHDYHPD\EHFXUWDLOHGDQG E\KRZPXFKLQUHVSHFWRIXQZRUNHGPLVVHG ZRUNLQJWLPH
6HFWLRQ
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
7KHHPSOR\HULVREOLJHGWRUHLPEXUVHDQHPSOR\HHIRUFRVWVLQFXUUHGE\KLPWKURXJKQRIDXOWRIKLV RZQEHFDXVHWKHHPSOR\HUFKDQJHVWKHWLPHRIKLVOHDYHRUUHFDOOVKLPIURPOHDYH
7KHHPSOR\HUPD\QRWGHWHUPLQHWKHWLPHRIDQHPSOR\HH VDQQXDO OHDYHVRWKDWLWFRLQFLGHVZLWKD WLPHZKHQWKHHPSOR\HHLVRQDFWLYHPLOLWDU\GXW\RUDOWHUQDWLYH FLYLOLDQVHUYLFHZKHQKHLVUHFRJQL]HG DV EHLQJ WHPSRUDULO\ XQILW WR ZRUN SXUVXDQW WR RWKHU VWDWXWRU\ SURYLVLRQV 1RWHD RUZKHQDIHPDOH HPSOR\HHLVRQPDWHUQLW\RUSDUHQWDOOHDYHRUZKHQDPDOHHPSOR\HHLVRQSDUHQWDOOHDYH'XULQJWLPHV ZKHQWKHUHDUHRWKHULPSHGLPHQWVREVWDFOHV WRZRUNRQDQHPSOR\HH VVLGHWKHHPSOR\HUPD\GHWHUPLQH WKHWLPHRIWKHHPSOR\HH VOHDYHRQO\DWKLVUHTXHVW
,IDIHPDOHHPSOR\HHUHTXHVWVWKDWKHUOHDYHEHVFKHGXOHGVRWKDWLWIROORZVRQLPPHGLDWHO\DIWHUWKH HQGRIKHUPDWHUQLW\OHDYH>VHFWLRQ @RULIDPDOHHPSOR\HHUHTXHVWVWKDWKLVOHDYHEHVFKHGXOHGVR WKDWLWIROORZVRQLPPHGLDWHO\DIWHUWKHHQGRIKLVSDUHQWDOOHDYHVXFKSDUHQWDOOHDYHWHUPLQDWLQJQRODWHU WKDQDZRPDQ VPDWHUQLW\OHDYH WKHHPSOR\HUVKDOOFRPSO\ZLWKVXFKUHTXHVW
6HFWLRQ
7KHHPSOR\HUPD\GHWHUPLQHWKHWLPHZKHQDQHPSOR\HHWDNHVKLVOHDYHHYHQWKRXJKWKHHPSOR\HH KDV QRW \HW VDWLVILHG WKH FRQGLWLRQV IRU EHFRPLQJ HQWLWOHG WR WDNH OHDYH LI LW FDQ EH DVVXPHG WKDW WKH HPSOR\HH ZLOO VDWLVI\ WKHVH FRQGLWLRQV E\ WKH HQG RI WKH FDOHQGDU \HDU RU E\ WKH WLPH KLV HPSOR\PHQW UHODWLRQVKLSWHUPLQDWHV
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
6HFWLRQ
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
,IDSXEOLFKROLGD\IDOOVRQDGD\GXULQJDQHPSOR\HH VSHULRGRIOHDYHZKLFKZRXOGRWKHUZLVHKDYH EHHQDQRUPDOZRUNLQJGD\IRUKLPWKDWGD\LVQRWFRXQWHGDVSDUWRIKLVOHDYH,IWKHHPSOR\HUJLYHVDQ HPSOR\HHWLPHRIILQOLHXIRURYHUWLPHZRUNRUIRUZRUNGRQHRQDSXEOLFKROLGD\DQGWKHWLPHRIILQOLHX IDOOVRQDGD\ZKLFKIRUPVSDUWRIKLVOHDYHWKHHPSOR\HULVREOLJHGWRJLYHWKHHPSOR\HHVXFKWLPHRIILQ OLHXRQDQRWKHUGD\
6HFWLRQD
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
6HFWLRQE
:KHQDQHPSOR\HHWDNHVKLVOHDYHKHLVHQWLWOHGWRDFRPSHQVDWRU\ZDJHLQWKHDPRXQWRIKLVDYHUDJH HDUQLQJVDQGLIDSSURSULDWHSHUTXLVLWHVLQNLQG
7KHHPSOR\HUVKDOORQO\SURYLGHWKHHPSOR\HHZLWKDFRPSHQVDWRU\ZDJHIRUOHDYHZKLFKKHGRHVQRW WDNHLIWKHHPSOR\HHLVXQDEOHWRWDNHVXFKOHDYHHYHQE\WKHHQGRIWKHIROORZLQJFDOHQGDU\HDU
D EHFDXVHWKHHPSOR\HUGLGQRWIL[DWLPHIRUKLPWRWDNHKLVOHDYHRUPLVFDOFXODWHGWKHOHQJWKRIKLV OHDYH
E GXHWRLPSHGLPHQWVWRZRUNRQWKHSDUWRIWKHHPSOR\HH F GXHWRWHUPLQDWLRQRIWKHHPSOR\PHQWUHODWLRQVKLS
,Q WKH FDVH RI OHDYH RU SDUWLDO OHDYH ZKLFK DQ HPSOR\HH ZDV XQDEOH WR WDNH KH LV HQWLWOHG WR D FRPSHQVDWRU\ZDJHLQWKHDPRXQWRIKLVDYHUDJHHDUQLQJV
7KHHPSOR\HHVSXUVXDQWWRVHFWLRQ DUHHQWLWOHGWRDFRPSHQVDWRU\ZDJHIRUQRPRUHWKDQIRXU ZHHNVRIOHDYHZKLFKWKH\GLGQRWWDNH
$Q HPSOR\HH LV REOLJHG WR UHIXQGDFRPSHQVDWRU\ZDJHDOUHDG\SDLGIRUOHDYHRUDSDUWWKHUHRIWR ZKLFKKHORVWKLVHQWLWOHPHQWRUWRZKLFKKLVHQWLWOHPHQWGLGQRWDULVH
$FRPSHQVDWRU\ZDJHPD\QRWEHSURYLGHGIRUVXSSOHPHQWDU\OHDYHZKLFKZDVQRWWDNHQVXFKOHDYH PXVWDOZD\VEHWDNHQLQSUHIHUHQFHWRRWKHUW\SHV
6HFWLRQF
7KH*RYHUQPHQWVKDOOGHWHUPLQHLQDGHFUHHZKLFKSHULRGRIWLPHLVFRQVLGHUHGDVDSHULRGRIZRUN SHUIRUPDQFHHYHQWKRXJKDQHPSOR\HHGRHVQRWZRUN
&+$37(5,9
:$*(6&203(16$725<:$*(6$1'5(,0%856(0(172) (;3(16(6 'LYLVLRQ :DJHV
6HFWLRQ
$QHPSOR\HHLVHQWLWOHGWREHSDLGDZDJHRUVDODU\IRUKLVZRUNLQDFFRUGDQFHZLWKRWKHUVWDWXWRU\ SURYLVLRQV1RWH
:KHUH WKLV &RGH LQFOXGHV SURYLVLRQVRQZDJHVWKH\VKDOODOVRPHDQVDODULHVXQOHVVLWLVH[SUHVVO\ VWDWHGRWKHUZLVH
$ ZDJH PD\ QRW EH ORZHU WKDQ WKH PLQLPXP ZDJH )RU WKHVH SXUSRVHV D ZDJH VKDOO QRW LQFOXGH SUHPLXPVIRURYHUWLPHZRUNZRUNLQDUGXRXVDQGKD]DUGRXVZRUNLQJHQYLURQPHQWVQLJKWZRUNDQGZRUN RQSXEOLF KROLGD\V
,Q D GHFUHH WKH *RYHUQPHQW VKDOO GHWHUPLQH WKH DPRXQW RI WKH PLQLPXP ZDJH RU WKH FRQGLWLRQV DSSO\LQJ WR LWV GHWHUPLQDWLRQ DQG DPRXQW DV D UXOH IURP WKH EHJLQQLQJ RI D FDOHQGDU \HDU WDNLQJ LQWR DFFRXQWWKHFRQVXPHUSULFHLQGH[$PLQLPXPZDJHZKLFKLVKLJKHUWKDQWKHDPRXQWODLGGRZQLQWKH
*RYHUQPHQWGHFUHHSXUVXDQWWRWKHILUVWVHQWHQFHPD\EHDJUHHGLQDFROOHFWLYHEDUJDLQLQJDJUHHPHQW
6HFWLRQVWR 5HSHDOHG
6HFWLRQ
0DWXULW\RI:DJHV
$ZDJHVKDOOEHSD\DEOHDIWHUSHUIRUPDQFHRIWKHZRUNQRODWHUWKDQLQWKHFDOHQGDUPRQWKIROORZLQJ DIWHUWKHPRQWKZKHQWKHHPSOR\HH VHQWLWOHPHQWWRKLVZDJHDURVHXQOHVVDVKRUWHUSHULRGWKDQRQHPRQWK ZDVDJUHHGLQWKHHPSOR\HH VHPSOR\PHQWFRQWUDFWDQRWKHUFRQWUDFWRUWKHUHOHYDQWFROOHFWLYHEDUJDLQLQJ DJUHHPHQW,QWKHFDVHRIVDODULHVWKHPDWXULW\SHULRGFDQQRWEHDJUHHGIRUOHVVWKDQRQHPRQWK
$IWHUFRQVXOWLQJWKHFRPSHWHQWWUDGHXQLRQRUJDQERG\ WKHHPSOR\HUVKDOOGHWHUPLQHUHJXODUSD\ GD\VIRUWKHSD\PHQWRIZDJHV ZLWKLQWKHSHULRGSXUVXDQWWRVXEVHFWLRQ XQOHVVWKHSD\GD\VKDYH DOUHDG\EHHQDJUHHGLQWKHUHOHYDQWFROOHFWLYHEDUJDLQLQJDJUHHPHQW
7KHHPSOR\HUVKDOOSD\DQHPSOR\HHKLVZDJHEHIRUHWKHVWDUWRIWKHHPSOR\HH VDQQXDO OHDYHLIWKH SD\GD\IRUVXFKZDJHIDOOVRQDGD\GXULQJWKHHPSOR\HH VOHDYHXQOHVVWKHHPSOR\HUDQGWKHHPSOR\HH DJUHH RWKHUZLVH ,I WKH V\VWHP XVHG WR FDOFXODWH ZDJHV GRHV QRW DOORZ WKLV WKH HPSOR\HU VKDOO SD\ WKH HPSOR\HHDQDGHTXDWHDGYDQFHDQGWKHEDODQFHRIWKHHPSOR\HH VZDJHVKDOOEHSDLGWRKLPQRODWHUWKDQ WKHQH[WUHJXODUSD\GD\DIWHUKLVOHDYH
:KHQDQHPSOR\HH VHPSOR\PHQWUHODWLRQVKLSWHUPLQDWHVDWKLVUHTXHVWWKHHPSOR\HUVKDOOSD\KLP KLVZDJHIRUWKHSUHYLRXVPRQWKRQWKHGD\ZKHQWKHHPSOR\HH VHPSOR\PHQWUHODWLRQVKLSWHUPLQDWHV,I WKLV LV QRW SRVVLEOH EHFDXVHRIWKHV\VWHPXVHGWRFDOFXODWHZDJHVWKHHPSOR\HUVKDOOSD\WKHZDJHQR ODWHU WKDQ WKH QH[W UHJXODU SD\GD\ DIWHU WKH GD\ ZKHQ WKH HPSOR\HH V HPSOR\PHQW UHODWLRQVKLS LV WHUPLQDWHG
6HFWLRQ
3D\PHQWRI:DJHV
$ZDJHVKDOOEHSDLGWRDQHPSOR\HHLQOHJDOWHQGHUPRQH\1RWHE $QHPSOR\HHPD\RQO\EH SDLGLQNLQGE\KLVHPSOR\HUXQGHUWKHFRQGLWLRQVDQGWRWKHH[WHQWODLGGRZQLQDQRWKHU$FW1RWHF
$ZDJHVKDOOEHURXQGHGXSWRWKHQH[WZKROHFURZQ
:DJHV VKDOO EH SDLG DW WKH ZRUNSODFH GXULQJ ZRUNLQJ KRXUV XQOHVV LW LV DJUHHG RWKHUZLVH LQ WKH FROOHFWLYH EDUJDLQLQJ DJUHHPHQW HPSOR\PHQW FRQWUDFW RU DQRWKHU FRQWUDFW ,I IRU LPSRUWDQW UHDVRQV DQ HPSOR\HHFDQQRWFROOHFWKLVZDJHWKHHPSOR\HUVKDOOVHQGKLPKLVZDJHRQWKHGD\IL[HGIRULWVSD\PHQW QR ODWHU WKDQ WKH QH[W ZRUNLQJ GD\ DW WKH HPSOR\HU V H[SHQVH DQG ULVN XQOHVV WKH HPSOR\HU DQG WKH HPSOR\HHDJUHHRWKHUZLVH
,IDZDJHLVFDOFXODWHGFRPSXWHG E\WKHPRQWKWKHHPSOR\HUVKDOOJLYHHDFKHPSOR\HHDZULWWHQ GRFXPHQWFRQWDLQLQJGDWDDERXWWKHLQGLYLGXDOFRPSRQHQWVRIKLVZDJHDQGWKHGHGXFWLRQVPDGHIURPLW $WDQHPSOR\HH VUHTXHVWWKHHPSOR\HUVKDOOOHWKLPLQVSHFWGRFXPHQWVRQZKLFKWKHFDOFXODWLRQRIVXFK HPSOR\HH VZDJHZDVEDVHG
$QHPSOR\HHPD\DXWKRUL]HDQRWKHUSHUVRQLQZULWLQJWRFROOHFWKLVZDJH:DJHFDQRQO\EHSDLGWR DQ HPSOR\HH V VSRXVH RQ WKH EDVLV RI D ZULWWHQ DXWKRUL]DWLRQ:LWKRXWVXFKZULWWHQDXWKRUL]DWLRQZDJH PD\RQO\EHSDLGWRDSHUVRQRWKHUWKDQWKHHPSOR\HHLIVRGHWHUPLQHGE\ODZ1RWH
6HFWLRQ
'HGXFWLRQVIURP:DJHV
'HGXFWLRQV IURP D ZDJH PD\ RQO\ EH PDGH RQ WKH EDVLV RI DQ DJUHHPHQW RQ VXFK GHGXFWLRQV 2WKHUZLVHWKHHPSOR\HUPD\GHGXFWRQO\WKHIROORZLQJIURPDQHPSOR\HH VZDJH D DGYDQFHSD\PHQWVRISHUVRQDOLQFRPHWD[
E VRFLDO VHFXULW\ LQVXUDQFH FRQWULEXWLRQV VWDWH HPSOR\PHQW SROLF\ FRQWULEXWLRQV DQG JHQHUDO KHDOWK LQVXUDQFHFRQWULEXWLRQV
F DGYDQFHVRIDZDJHZKLFKWKHHPSOR\HHLVREOLJHGWRUHSD\EHFDXVHKHGLGQRWPHHWWKHFRQGLWLRQVIRU SD\PHQWRIVXFKZDJH
G DPRXQWVRUGHUHGWREHSDLGE\DFRXUWDQDGPLQLVWUDWLYHDXWKRULW\RUDOHJDOO\DXWKRUL]HGDJHQF\
H XQDFFRXQWHGIRUDGYDQFHVRIWUDYHOOLQJH[SHQVHV
I UHFUXLWPHQWDQGRWKHUERQXVHVSDLGWRWKHHPSOR\HHZKHQKHZDVUHFUXLWHGEXWZKLFKKHPXVWUHIXQG SXUVXDQWWRVWDWXWRU\SURYLVLRQV
J FRPSHQVDWRU\ZDJHSDLGLQOLHXRIDQQXDO OHDYHWRZKLFKWKHHPSOR\HHORVWKLVHQWLWOHPHQWRUGLGQRW EHFRPHHQWLWOHG
K H[FHVV VLFNQHVV SHQVLRQ DQG VWDWH VRFLDO VXSSRUW EHQHILWV DQG XQODZIXOO\ UHFHLYHG VRFLDO VHFXULW\ EHQHILWVLIWKHHPSOR\HHLVREOLJHGWRUHIXQGWKHVHRQWKHEDVLVRIDQHQIRUFHDEOHUXOLQJRUMXGJPHQW SXUVXDQWWRRWKHUVWDWXWRU\SURYLVLRQV
6XEVHFWLRQ VKDOO VLPLODUO\ DSSO\ WR GHGXFWLRQV PDGH IURP UHPXQHUDWLRQ IRU VWDQGE\ DQG D FRPSHQVDWRU\ZDJH 7KHSULRULW\RUGHU RIGHGXFWLRQVIURPZDJHVVKDOOEHGHWHUPLQHGLQD*RYHUQPHQWGHFUHH
6HFWLRQ 5HSHDOHG
6HFWLRQ
5HSHDOHG
'LYLVLRQ
&RPSHQVDWRU\:DJHVLQWKH&DVHRI,PSHGLPHQWVWR:RUN
,PSHGLPHQWVRQWKH(PSOR\HH V6LGH 6HFWLRQ
,PSHGLPHQWVGXHWR3XEOLF,QWHUHVW
$QHPSOR\HUVKDOOJUDQWKLVHPSOR\HHWLPHRIIWRWKHH[WHQWQHFHVVDU\WRHQDEOHKLPWRSHUIRUPD SXEOLFRIILFHFLYLFGXWLHVRURWKHUDFWVLQWKHSXEOLFLQWHUHVWLILWLVQRWSRVVLEOHIRUWKHHPSOR\HHWRFDUU\ RXWWKHVHDFWLYLWLHVRXWVLGHRIZRUNLQJKRXUV
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
7KH*RYHUQPHQWPD\GHWHUPLQHLQDGHFUHHZKHQDQHPSOR\HHZKRLVUHOHDVHGVKRUWWHUPVKDOOEH SDLG D FRPSHQVDWRU\ ZDJH E\ WKH HPSOR\HU IRU ZKRP KH LV LQ IDFW DFWLQJ DW WKDW WLPH RU ZKHQ WKLV HPSOR\HUVKDOOUHLPEXUVHDFRPSHQVDWRU\ZDJHWRWKHHPSOR\HUZKRUHOHDVHGWKHHPSOR\HH
7KH 0LQLVWU\ RI /DERXU DQG 6RFLDO $IIDLUV VKDOO GHWHUPLQH LQ D GHFUHH ZKLFK RWKHU DFWV DUH LQWKH SXEOLFLQWHUHVWDQGWKHH[WHQWRIDQGFRQGLWLRQVIRUVKRUWWHUPUHOHDVHDQGWKHSD\PHQWRIDFRPSHQVDWRU\ ZDJH
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
6HFWLRQ
&RPSHQVDWRU\:DJHVIRU0LOLWDU\DQG&LYLOLDQ6HUYLFH
$QHPSOR\HUVKDOORQO\SD\DFRPSHQVDWRU\ZDJHLQWKHDPRXQWRIDYHUDJHHDUQLQJVWRDQHPSOR\HH HQJDJHGLQEDVLFRUDOWHUQDWLYHPLOLWDU\VHUYLFHRUFLYLOLDQVHUYLFHIRUWKHILUVWWZRZHHNVRIWKLVVHUYLFH WKH HQWLWOHPHQW RI DQ HPSOR\HH WR D FRPSHQVDWRU\ ZDJH IRU D ORQJHU SHULRG PD\ EH ODLG GRZQ LQ D FROOHFWLYH EDUJDLQLQJ DJUHHPHQW RU LQWHUQDO UHJXODWLRQV ZKHQ WKH HPSOR\HU V DELOLW\ WR SURYLGH VXFK D FRPSHQVDWRU\ ZDJH VKDOO DOVR EH WDNHQ LQWR DFFRXQW $Q\ FRPSHQVDWRU\ ZDJH ZLOO EH SD\DEOH QR ODWHU WKDQWKUHHGD\VSULRUWRWKHHPSOR\HH VFRPPHQFHPHQWRIPLOLWDU\VHUYLFH
)RU HDFK VKLIW RU ZRUNLQJ GD\ RU D PDMRU SDUW WKHUHRI ZKHQ DQ HPSOR\HH LV DEVHQW IURP ZRUN ZLWKRXW UHDVRQ GXULQJ WKH IRXU ZHHNV LPPHGLDWHO\ SUHFHGLQJ WKH FRPPHQFHPHQW RI PLOLWDU\ VHUYLFH RU FLYLOLDQVHUYLFHWKHHPSOR\HUPD\UHGXFHVXFKHPSOR\HH VFRPSHQVDWRU\ZDJHE\IURPRQHWRWKUHHGD\V LI WKH HPSOR\HH PLVVHV D VKLIW RU D PDMRU SDUW WKHUHRI ZLWKRXW UHDVRQ DQGWKHFRPSHQVDWRU\ZDJHKDV DOUHDG\EHHQSDLGKHLVUHTXLUHGWRUHSD\WRWKHHPSOR\HUDQDPRXQWZKLFKFRUUHVSRQGVWRWKHUHGXFWLRQ LQKLVFRPSHQVDWRU\ZDJH
,IDQHPSOR\HHXQGHUWDNHVPLOLWDU\WUDLQLQJRURWKHUW\SHVRIVHUYLFHLQWKHDUPHGIRUFHVDSDUWIURP EDVLF RU DOWHUQDWLYH PLOLWDU\ VHUYLFH RU LI KH XQGHUWDNHV FLYLOLDQ VHUYLFH LQVWHDG RI PLOLWDU\ WUDLQLQJ GXULQJKLVSHULRGRIVHUYLFHKHLVHQWLWOHGWRDFRPSHQVDWRU\ZDJHIURPWKHHPSOR\HULQDQDPRXQWVHWE\ D *RYHUQPHQW GHFUHH 7KH FRPSHQVDWRU\ ZDJH XQGHU WKH SUHFHGLQJ VHQWHQFH PD\ EH LQFUHDVHG LQ D FROOHFWLYHEDUJDLQLQJDJUHHPHQWRULQWHUQDOUHJXODWLRQVKRZHYHUWKHFRPSHQVDWRU\ZDJHPD\QRWH[FHHG DYHUDJHHDUQLQJV
,I DIWHU FRPSOHWLQJ RQH W\SH RI VHUYLFH LQ WKH DUPHG IRUFHV DQ HPSOR\HH LPPHGLDWHO\ EHJLQV WR XQGHUWDNH VHUYLFH RI WKLV RU RI DQRWKHU NLQG RU FLYLOLDQ VHUYLFH WKH ODWHU VHUYLFH LV GHHPHG WR EH FRQWLQXDWLRQRIWKHSUHYLRXVVHUYLFHZKHQDVVHVVLQJHQWLWOHPHQWWRDFRPSHQVDWRU\ZDJHLIKHXQGHUWDNHV KLVEDVLFRUDOWHUQDWLYH PLOLWDU\VHUYLFHLQWZRRUPRUHSDUWVEHIRUHVWDUWLQJWKHVHFRQGRUODWHUSDUWKHLV HQWLWOHG WR D FRPSHQVDWRU\ ZDJH IRU RQH ZHHN IURP WKH HPSOR\HU ZLWK HIIHFW IURP WKH GD\ VHW IRU
FRPPHQFHPHQWRIWKHVHFRQGRUODWHUSDUWRIWKLVVHUYLFH
$IWHUWKHHQGRIKLVVHUYLFHLQWKHDUPHGIRUFHVRUKLVFLYLOLDQVHUYLFHWKHHPSOR\HHLVHQWLWOHGWRD ZDJHDVRIWKHGD\KHUHWXUQVWRZRUN
,QFRQQHFWLRQZLWKDQHPSOR\HH VFRPPHQFHPHQWRIVHUYLFHLQWKHDUPHGIRUFHVRUFLYLOLDQVHUYLFH WKH*RYHUQPHQWVKDOOGHWHUPLQHWKHH[WHQWWRZKLFKKHFDQEHJUDQWHGWLPHRIIZLWKDQHQWLWOHPHQWWRD FRPSHQVDWRU\ZDJH
7KHHPSOR\HUVKDOOEHUHLPEXUVHGIRUSD\LQJDFRPSHQVDWRU\ZDJHWRDQHPSOR\HHXQGHUVXEVHFWLRQV WR LQUHVSHFWRIVHUYLFHLQWKHDUPHGIRUFHVE\WKHFRPSHWHQWVWDWHPLOLWDU\DGPLQLVWUDWLRQDXWKRULW\ DQGLQWKHFDVHRIFLYLOLDQVHUYLFHE\WKHFRPSHWHQWVWDWHDGPLQLVWUDWLRQDXWKRULW\&RPSHQVDWRU\ZDJHV SDLG E\ EXGJHWDU\ RUJDQL]DWLRQV RU WKRVH ZKLFK GXH WR D FROOHFWLYH EDUJDLQLQJ DJUHHPHQW RU LQWHUQDO UHJXODWLRQVH[FHHGWKHDPRXQWSUHVFULEHGE\VWDWXWRU\SURYLVLRQVVKDOOQRWEHUHLPEXUVHG
6HFWLRQ
7UDLQLQJDQG6WXGLHV'XULQJ(PSOR\PHQW
$Q HPSOR\HH V DWWHQGDQFH RI D WUDLQLQJ FRXUVH RU KLV H[WHUQDO VWXGLHV E\ ZKLFK WKH HPSOR\HHLVWR DFTXLUH TXDOLILFDWLRQV VNLOOV ODLG GRZQ LQWKHVWDWXWRU\SURYLVLRQVDVQHFHVVDU\IRUWKHSHUIRUPDQFHRI ZRUN MRE DJUHHG LQ KLV HPSOR\PHQW FRQWUDFW VKDOO EH FRQVLGHUHG DV DQ LPSHGLPHQW WR ZRUN RQ WKH HPSOR\HH VVLGH
$QHPSOR\HH VDWWHQGDQFHRIDWUDLQLQJFRXUVHRUKLVH[WHUQDOVWXGLHVIRUWKHSXUSRVHRIEURDGHQLQJ TXDOLILFDWLRQVIRUWKHSHUIRUPDQFHRIZRUNMRE DJUHHGLQKLVHPSOR\PHQWFRQWUDFWVHFWLRQD VKDOOEH FRQVLGHUHGDVWKHSHUIRUPDQFHRIZRUNIRUZKLFKDQHPSOR\HHLVHQWLWOHGWRZDJH
7KH0LQLVWU\RI/DERXUDQG6RFLDO$IIDLUVDFWLQJLQDJUHHPHQWZLWKWKH0LQLVWU\RI(GXFDWLRQ
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
6HULRXV3HUVRQDO,PSHGLPHQWVWR:RUN 6HFWLRQ
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
RI KHDOWK LV EHLQJ H[DPLQHG RU WUHDWHG LQ D KHDOWK FDUH IDFLOLW\ DQG WKLV FRXOG QRW KDYH EHHQ DUUDQJHG RXWVLGH RI WKH HPSOR\HH V ZRUNLQJ WLPH 'XULQJ VXFK SHULRG WKH HPSOR\HH VKDOO QRW EH HQWLWOHG WR D FRPSHQVDWRU\ ZDJH DQG WKH HPSOR\HH V HQWLWOHPHQWV WR VLFNQHVV LQVXUDQFH EHQHILWV DQG VWDWH VRFLDO VXSSRUWVKDOOEHUHJXODWHGE\RWKHUVWDWXWRU\SURYLVLRQV1RWH
6HFWLRQ
,IDQHPSOR\HHLVQRWDEOHWRZRUNIRURWKHULPSRUWDQWSHUVRQDOUHDVRQVWKHHPSOR\HUVKDOOJUDQWKLP WLPHRII
7KH*RYHUQPHQWVKDOOGHWHUPLQHLQDGHFUHHLQZKLFKFDVHVXQGHUZKDWFRQGLWLRQVDQGWRZKDWH[WHQW VXFKWLPHRIIVKDOOEHJUDQWHGDQGZKHQDQGWRZKDWH[WHQWDQHPSOR\HHLVHQWLWOHGWRDFRPSHQVDWRU\ ZDJHGXULQJWKLVSHULRG
(PSOR\HHV HQWLWOHPHQWVWRWLPHRIIFRPSHQVDWRU\ZDJHVDERYHWKHOHYHOODLGGRZQLQWKHODERXUODZ SURYLVLRQVUHJXODWLRQV LVVXHGSXUVXDQWWRVXEVHFWLRQ DQGWKHFLUFXPVWDQFHVXQGHUZKLFKDQHPSOR\HH EHFRPHV HQWLWOHG WR WLPH RII DQG SRVVLEO\ WR D FRPSHQVDWRU\ ZDJH PD\ EH H[WHQGHG LQ FROOHFWLYH EDUJDLQLQJ DJUHHPHQWV RU LQWHUQDO UHJXODWLRQV D FRPSHQVDWRU\ ZDJH PD\ QRW KRZHYHU H[FHHG DQ HPSOR\HH V DYHUDJH HDUQLQJV (PSOR\HUV ZKR DUH QRW HQJDJHG LQ EXVLQHVV DFWLYLW\ PD\ RQO\ IL[ HQWLWOHPHQWVWRWLPHRIIZLWKRXWDFRPSHQVDWRU\ZDJH
,PSHGLPHQWVRQWKH(PSOR\HU V6LGH 6HFWLRQ
,GOH7LPHDQG:RUN,QWHUUXSWLRQV'XHWR$GYHUVH:HDWKHU&RQGLWLRQV
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
,IDQHPSOR\HHFDQQRWGRSHUIRUP KLVZRUNEHFDXVHRIDQLQWHUUXSWLRQRIZRUNFDXVHGE\DGYHUVH ZHDWKHU FRQGLWLRQV DQG KH LV QRW WUDQVIHUUHG DVVLJQHG WR RWKHU ZRUN >VHFWLRQ D @ KH VKDOO EH HQWLWOHG WR D FRPSHQVDWRU\ ZDJH LQ WKH DPRXQW RI RI KLV DYHUDJH HDUQLQJV $ FRPSHQVDWRU\ ZDJH DERYH WKLV DPRXQW PD\ EH DJUHHG LQ D FROOHFWLYH EDUJDLQLQJ DJUHHPHQW RU SUHVFULEHG LQ LQWHUQDO UHJXODWLRQVEXWLWPD\QRWH[FHHGKLVDYHUDJHHDUQLQJVWKLVVKDOODOVRDSSO\WRHPSOR\HUVQRWXQGHUWDNLQJ EXVLQHVVDFWLYLW\
6HFWLRQ
2WKHU,PSHGLPHQWVRQWKH(PSOR\HU V6LGH
,IDQHPSOR\HHFDQQRWGRSHUIRUP ZRUNGXHWRLPSHGLPHQWVRQWKHHPSOR\HU VVLGHRWKHUWKDQWKRVH VWDWHGLQWKHSUHFHGLQJSURYLVLRQVWKHHPSOR\HUVKDOOSD\KLPDFRPSHQVDWRU\ZDJHLQWKHDPRXQWRIKLV DYHUDJH HDUQLQJV XQOHVV WKH UHJXODWLRQV UHIHUUHG WR LQ VHFWLRQ GHWHUPLQH DQRWKHU DPRXQW IRU WKH FRPSHQVDWRU\ZDJH
$QRWKHU LPSHGLPHQW RQ WKH HPSOR\HU V VLGH SXUVXDQW WR VXEVHFWLRQ VKDOOEHVHULRXVRSHUDWLRQDO UHDVRQV DV D UHVXOW RI ZKLFK WKH HPSOR\HU LV XQDEOH WR DVVLJQ ZRUN WR KLV HPSOR\HHV SURYLGHG WKDW WKH
HPSOR\HU VSHFLILHV WKHVH UHDVRQV LQ D ZULWWHQ DJUHHPHQW ZLWK WKH FRPSHWHQW WUDGH XQLRQ RUJDQL]DWLRQ ERG\ DQGGHWHUPLQHVDFRPSHQVDWRU\ZDJHWRZKLFKHPSOR\HHVZRXOGEHHQWLWOHGLQVXFKFDVHLQWKH UDQJHRIIURPWRRIDYHUDJHHDUQLQJV7KHDJUHHPHQWSXUVXDQWWRWKHILUVWVHQWHQFHPD\QRWEH UHSODFHGE\DXQLODWHUDO GHFLVLRQRIWKHHPSOR\HU
'LYLVLRQ
5HLPEXUVHPHQWRI([SHQVHV,QFXUUHGE\(PSOR\HHVLQ&RQQHFWLRQZLWK 3HUIRUPDQFHRIWKHLU:RUN-RE 6HFWLRQ
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
&+$37(59
6$)(7<$1'7+(3527(&7,212)+($/7+$7:25. 6HFWLRQ
)XQGDPHQWDO3URYLVLRQV
$QHPSOR\HUVKDOOHQVXUHWKHVDIHW\DQGSURWHFWWKHKHDOWKRIHPSOR\HHVDWZRUNLQUHODWLRQWRULVNV ZKLFKPD\SRVHDGDQJHUWROLIHDQGKHDOWKZKHQHPSOR\HHVDUHSHUIRUPLQJWKHLUZRUNKHUHDIWHU³ULVNV´ LQ&]HFK³UL]LND´
7KHHPSOR\HU VREOLJDWLRQWRHQVXUHVDIHW\DQGSURWHFWKHDOWKDWZRUNVKDOODOVRUHODWHWRDOOSHUVRQV LQGLYLGXDOV ZKRDUHSUHVHQWDWKLVZRUNSODFHVZLWKKLVNQRZOHGJH
$WDOOOHYHOVRIPDQDJHPHQWWKHHPSOR\HU VPDQDJHULDOVWDIIVKDOODVIDUDVWKHLUGXWLHVSHUPLWWDNH RYHUWKHHPSOR\HU VREOLJDWLRQWRHQVXUHVDIHW\DQGSURWHFWKHDOWKDWZRUN7KHVHWDVNVVKDOOIRUPDQHTXDO DQGLQWHJUDOSDUWRIWKHLUZRUNGXWLHV
,I HPSOR\HHV RI WZR RU PRUH HPSOR\HUV DUH IXOILOOLQJ WDVNV DW RQH DQG WKH VDPH ZRUNSODFH WKHLU HPSOR\HUV VKDOO LQIRUP HDFK RWKHU LQ ZULWLQJ RI DQ\ ULVNV DQG FRRSHUDWH WR HQVXUH VDIH DQG KHDOWK\ ZRUNLQJ(DFKRIWKHHPSOR\HUVVKDOO D HQVXUHWKDWKLVDFWLYLWLHVDQGWKHZRUNRIKLVHPSOR\HHVLVRUJDQL]HGDQGFDUULHGRXWLQVXFKDPDQQHU WKDWWKHHPSOR\HHVRIWKHRWKHUHPSOR\HUDUHDOVRDWWKHVDPHWLPHSURWHFWHGDWWKHZRUNSODFH
E FRRSHUDWHLQHQVXULQJWKDWWKHZRUNLQJHQYLURQPHQWLVVDIHDQGXQREMHFWLRQDEOHDQGSRVHVQRWKUHDW WRWKHKHDOWKRIDQ\RIWKHHPSOR\HHVDWWKHZRUNSODFH
7KHFRVWRIHQVXULQJVDIHW\DQGSURWHFWLQJKHDOWKDWZRUNVKDOOEHERUQHE\WKHHPSOR\HU
6HFWLRQD
5LVN3UHYHQWLRQ
%\ RUJDQL]LQJ DGHTXDWH VDIHW\ DQG KHDOWK SURWHFWLRQ DW ZRUN DQG E\ DGRSWLQJ PHDVXUHV WR SUHYHQW ULVNV WKH HPSOR\HU VKDOO HVWDEOLVK FRQGLWLRQV ZKHUHE\ WKH ZRUNLQJ HQYLURQPHQW LV VDIH DQG XQREMHFWLRQDEOHDQGSRVHVQRGDQJHUWRKHDOWK
5LVN SUHYHQWLRQ VKDOO PHDQ DOO PHDVXUHV WDNHQ SXUVXDQW WR WKH VWDWXWRU\ DQG RWKHU SURYLVLRQV UHJXODWLRQV WR HQVXUH VDIHW\ DQG WKH SURWHFWLRQ RI KHDOWK DW ZRUN DQG RWKHU PHDVXUHV WDNHQ E\ WKH HPSOR\HUWRSUHYHQWRUHOLPLQDWHULVNVRUWRPLQLPL]HWKHLUHIIHFWLIWKH\FDQQRWEHHOLPLQDWHG
7KHHPSOR\HUVKDOOVHHNRXWSRVVLEOHULVNVLGHQWLI\WKHLUFDXVHVDQGVRXUFHVDQGDGRSWPHDVXUHVWR HOLPLQDWH WKHP )RU WKLV SXUSRVH WKH HPSOR\HU VKDOO UHJXODUO\ PRQLWRU WKH OHYHO RI VDIHW\ DQG KHDOWK SURWHFWLRQDWZRUNLQSDUWLFXODUWKHOHYHORIWHFKQLFDOSUHYHQWLRQDQGRFFXSDWLRQDOULVNIDFWRUVLQZRUNLQJ FRQGLWLRQVWKHZRUNLQJHQYLURQPHQW DQGFRPSO\ZLWKWKHPHWKRGVDQGSURFHGXUHVXVHGWRHVWDEOLVKDQG DVVHVVULVNIDFWRUVSXUVXDQWWRVSHFLDOVWDWXWRU\SURYLVLRQV1RWHD
,IULVNVFDQQRWEHHOLPLQDWHGWKHHPSOR\HUVKDOODVVHVVDQGDGRSWPHDVXUHVWROLPLWWKHHIIHFWRIVXFK ULVNVLQRUGHUWRPLQLPL]HWKHGDQJHUZKLFKWKH\SRVHWRWKHHPSOR\HHV VDIHW\DQGKHDOWK
:KHQDGRSWLQJDQGLPSOHPHQWLQJWHFKQLFDOWHFKQRORJLFDORUJDQL]DWLRQDODQGRWKHUULVNSUHYHQWLRQ PHDVXUHVWKHHPSOR\HUVKDOOWDNHLQWRFRQVLGHUDWLRQWKHIROORZLQJJHQHUDOSUHYHQWLYHSULQFLSOHV
D OLPLWDWLRQRIULVNVDWVRXUFH
E HOLPLQDWLRQUHPRYDO RIULVNVDWVRXUFH
F PRGLILFDWLRQ RI ZRUNLQJ FRQGLWLRQV WR PHHW WKH QHHGV RI HPSOR\HHV ZLWK D YLHZ WR OLPLWLQJ WKHLU H[SRVXUHWRIDFWRUVDWZRUNZKLFKZLOODGYHUVHO\DIIHFWWKHLUKHDOWK
G UHSODFHPHQWRISK\VLFDOO\GHPDQGLQJZRUNDQGZRUNLQDUGXRXVFRQGLWLRQVE\QHZWHFKQRORJLFDODQG ZRUNLQJPHWKRGV
H UHSODFHPHQW RI GDQJHURXV WHFKQRORJLHV WHFKQLTXHV UDZ PDWHULDOV DQG RWKHU PDWHULDOV E\ OHVV GDQJHURXVRUULVN\IRUPVEDVHGRQWKHODWHVWVFLHQWLILFDQGWHFKQRORJLFDONQRZOHGJH
I UHVWULFWLRQRIWKHQXPEHURIHPSOR\HHVH[SRVHGWRWKHPD[LPXPH[SRVXUHOLPLWVDQGRWKHUKDUPIXO DJHQWVWRWKHDEVROXWHPLQLPXPQHFHVVDU\WRPHHWRSHUDWLQJUHTXLUHPHQWV
J SODQQLQJ RI ULVN SUHYHQWLRQ PHDVXUHV ZLWK UHJDUG WR WKH XVH RI WHFKQRORJ\ ZRUN RUJDQL]DWLRQ ZRUNLQJFRQGLWLRQVDQGVRFLDOUHODWLRQVDQGWKHLQIOXHQFHRIWKHZRUNLQJHQYLURQPHQW
K SUHIHUHQWLDO XVH RI PHDVXUHV RI FROOHFWLYH ULVN SUHYHQWLRQ DV DJDLQVW IRUPV RI LQGLYLGXDO ULVN SUHYHQWLRQ
L LQWURGXFWLRQ RI PHDVXUHV DLPHG DW OLPLWLQJ WKH OHDNDJH RI KDUPIXO VXEVWDQFHV IURP PDFKLQHV DQG HTXLSPHQWWRWKHOHYHOODLGGRZQLQVSHFLDOVWDWXWRU\SURYLVLRQV1RWHE
M LVVXDQFHRIDSSURSULDWHLQVWUXFWLRQVIRUWKHVDIHJXDUGLQJRIVDIHW\DQGWKHSURWHFWLRQRIKHDOWKDWZRUN
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
HYDFXDWLRQ RI WKH HPSOR\HHV LV DGHTXDWH ,Q FRRSHUDWLRQ ZLWK WKH ZRUNV IDFLOLW\ SURYLGLQJ SUHYHQWLYH FDUHWKHHPSOR\HUVKDOOHQVXUHWKDWWKHVHHPSOR\HHVDUHWUDLQHGDQGHTXLSSHGIRUWKHGHJUHHRISRWHQWLDO ULVNDWWKHZRUNSODFH
7KH HPSOR\HU VKDOO PRGLI\ WKH PHDVXUHV WR VXLW FKDQJHV LQ WKH FLUFXPVWDQFHV FKHFN RQ WKHLU HIIHFWLYHQHVVDQGREVHUYDQFHDQGHQVXUHWKDWZRUNLQJFRQGLWLRQVDUHLPSURYHG
6HFWLRQE ([SHUWLVH
7KH HPSOR\HU VKDOO WDNH VWHSV WR SUHYHQW ULVNV DW ZRUN ,Q WKH HYHQW RI WKH HPSOR\HU ODFNLQJ WKH QHFHVVDU\ H[SHUWLVH WKH HPSOR\HU V UHVSRQVLELOLWLHV LQ WKLV ILHOG VKDOO EH ERUQH E\ DQ HPSOR\HH ZKR SRVVHVVHVVXFKH[SHUWLVH 6XFKHPSOR\HHVKDOO
D EHDWOHDVW\HDUVRIDJHDQG
E KDYHDYRFDWLRQDOHGXFDWLRQDQGDFHUWDLQSHULRGRIH[SHULHQFHLQWKHILHOG
7KHHPSOR\HUVKDOOFRRSHUDWHZLWKVXFKH[SHUWHPSOR\HHLQKLVZRUNRIULVNSUHYHQWLRQDQGSURYLGH KLPZLWKWKHQHFHVVDU\PHDQVDQGLQIRUPDWLRQ
7KH*RYHUQPHQWVKDOOOD\GRZQLQDGHFUHHWKHTXDOLILFDWLRQVQHFHVVDU\IRUH[SHUWLVHXQGHUVXEVHFWLRQ
7KHHPSOR\HUVKDOO
6HFWLRQ
2EOLJDWLRQVRIWKH(PSOR\HU
D QRWDOORZHPSOR\HHVWRGRZRUNZKLFKLVEH\RQGWKHLUDELOLW\RUZKLFKLVLQDSSURSULDWHWRWKHLUVWDWH RIKHDOWK
E LQIRUPHDFKHPSOR\HHRIWKHFODVVLILFDWLRQRIWKHZRUNZKLFKKHLVGRLQJWKHZRUNFODVVLILFDWLRQVDUH GHWDLOHGLQRWKHUVWDWXWRU\SURYLVLRQV1RWHF
F HQVXUHWKDWFHUWDLQZRUNDVODLGGRZQLQVSHFLDOVWDWXWRU\SURYLVLRQV1RWHF LVRQO\FDUULHGRXWE\ HPSOR\HHVZKRKDYHWKHUHOHYDQWKHDOWKFHUWLILFDWHDQGZKRKDYHEHHQDSSURSULDWHO\YDFFLQDWHGRU KDYHDGRFXPHQWFRQILUPLQJWKHLUSURWHFWLRQDJDLQVWLQIHFWLRQ
G LQIRUPHPSOR\HHVRIWKHKHDOWKFDUHIDFLOLW\ZKLFKZLOOSURYLGHWKHPZLWKRFFXSDWLRQDOSUHYHQWLYH FDUH DQG ZKLFK W\SHV RI YDFFLQDWLRQV WKH\ DUH UHTXLUHG WR KDYH DQG RI WKH SUHYHQWLYH PHGLFDO H[DPLQDWLRQVWKDWWKH\PXVWXQGHUJRLQFRQQHFWLRQZLWKWKHSHUIRUPDQFHRIWKHLUZRUNDQGHQDEOH WKHP WR EH YDFFLQDWHG DQG WR XQGHUJR WKH SUHYHQWLYH PHGLFDO H[DPLQDWLRQV DQG VSHFLDO SUHYHQWLYH PHGLFDOH[DPLQDWLRQVWRWKHH[WHQWSUHVFULEHGE\WKHVSHFLDOVWDWXWRU\SURYLVLRQV1RWHF RULQD UXOLQJGHFLVLRQ RIWKHFRPSHWHQWK\JLHQHVHUYLFHDJHQF\
H SURYLGHIRUWKHHPSOR\HHVWUDLQLQJRQWKHVWDWXWRU\DQGRWKHUUHJXODWLRQVUHODWLQJWRWKHVDIHJXDUGLQJ RI VDIHW\ DQG SURWHFWLRQ RI KHDOWK DW ZRUN ZKLFK ZLOO FRPSOHPHQW WKHLU TXDOLILFDWLRQV DQG WKH UHTXLUHPHQWV IRU WKH SHUIRUPDQFH RI WDVNV UHODWHG WR WKHLU ZRUN DQG ZRUNSODFH WKH HPSOR\HU VKDOO UHJXODUO\FKHFNWKHHPSOR\HHV NQRZOHGJHRIVXFKVWDWXWRU\UHJXODWLRQVDQGFRQVLVWHQWO\UHTXLUHDQG PRQLWRUWKHLUREVHUYDQFH
I DWDSSURSULDWHLQWHUYDOVSURYLGHHPSOR\HHVHVSHFLDOO\WKRVHRQIL[HGWHUPHPSOR\PHQWFRQWUDFWVDQG
DGROHVFHQWVDVZHOODVWKHLUOHJLWLPDWHUHSUHVHQWDWLYHVZLWKDGHTXDWHLQIRUPDWLRQDERXWVDIHW\DQGWKH SURWHFWLRQ RI KHDOWK DW ZRUN HVSHFLDOO\ E\ DFTXDLQWLQJ WKHP ZLWK SRVVLEOH ULVNV WKH DVVHVVPHQW RI VXFK ULVNV DQG WKH SUHYHQWLYH PHDVXUHV WDNHQ DJDLQVW WKHLU HIIHFWV DV WKHVH UHODWH WR WKH HPSOR\HHV ZRUN DQG ZRUNSODFH 3UHJQDQW DQG EUHDVWIHHGLQJ ZRPHQ DQG PRWKHUV XQWLO WKH HQG RI WKH QLQWK PRQWK DIWHU JLYLQJ ELUWK VKDOO EH IXUWKHU IDPLOLDUL]HG ZLWK WKH ULVNV DQG WKHLU SRVVLEOH HIIHFWV RQ SUHJQDQF\RUEUHDVWIHHGLQJDQGWKHQHFHVVDU\VWHSVWDNHQLQFOXGLQJVWHSVUHODWHGWRWKHUHGXFWLRQRI PHQWDODQGSK\VLFDOWLUHGQHVVDQGRWKHUNLQGVRISK\VLFDODQGPHQWDOVWUHVVDVVRFLDWHGZLWKWKHZRUN GRQH DQG WKLV IRU WKH ZKROH WLPH ZKHQ LW LV QHFHVVDU\ WR VDIHJXDUG WKHLU VDIHW\ DQG SURWHFW WKHLU KHDOWK ,QIRUPDWLRQ DQG LQVWUXFWLRQV VKDOO EH SURYLGHG HVSHFLDOO\ DW WKH WLPH ZKHQ HPSOR\HHV DUH UHFUXLWHGDVVLJQHGRUWUDQVIHUUHGRUZKHQWKHLUZRUNLQJFRQGLWLRQVRUWKHZRUNLQJHQYLURQPHQWDUH PRGLILHG RU ZKHQ PHDQV RI ZRUNLQJ WHFKQRORJLHV DQG ZRUN SURFHGXUHV DUH QHZO\ LQWURGXFHG RU PRGLILHG
J DOORZHPSOR\HHVWRLQVSHFWUHFRUGVNHSWE\WKHHPSOR\HU LQFRQQHFWLRQZLWKVDIHJXDUGLQJRIWKHLU VDIHW\DQGWKHSURWHFWLRQRIWKHLUKHDOWKDWZRUN
K HQVXUHWKDWILUVWDLGLVDYDLODEOHWRHPSOR\HHV
L QRWXVHDPHWKRGRIUHPXQHUDWLRQZKLFKZRXOGLQFUHDVHWKHULVNRIHPSOR\HHVEHLQJLQMXUHGDWZRUN DQGWKHDSSOLFDWLRQRIZKLFKZRXOGOHDGWRDQLQFUHDVHRIRXWSXWDWWKHH[SHQVHRIHPSOR\HHV VDIHW\ DQGKHDOWK
M HQVXUHFRPSOLDQFHZLWKWKHSURKLELWLRQRIVPRNLQJDWWKHZRUNSODFHVODLGGRZQLQVSHFLDOVWDWXWRU\ UHJXODWLRQV1RWHG
7KHHPSOR\HUVKDOONHHSUHFRUGVRIVXFKWUDLQLQJLQIRUPDWLRQDQGLQVWUXFWLRQV
7KHHPSOR\HUVKDOOSURYLGHUHVWDUHDVDWWKHZRUNSODFHIRUSUHJQDQWDQGEUHDVWIHHGLQJZRPHQ
7KHHPSOR\HUVKDOOHQVXUHWKDWWKHQHFHVVDU\WHFKQLFDODQGRUJDQL]DWLRQDOVWHSVDUHWDNHQDWKLVRZQ H[SHQVHWRDGDSWZRUNLQJFRQGLWLRQVDQGWKHZRUNSODFHWRWKHQHHGVRIGLVDEOHGHPSOR\HHVDQGWRVHWXS SURWHFWHG ZRUNVKRSV DQG SURYLGH WUDLQLQJ RU LQGXFWLRQ IRU WKHP DQG WR GHYHORS WKH VNLOOV WKH\ QHHG WR SHUIRUPWKHLUUHJXODUHPSOR\PHQW
6HFWLRQD
3HUVRQDO:RUNLQJ3URWHFWLRQ$LGV:RUNLQJ&ORWKHVDQG)RRWZHDU:DVKLQJ$JHQWV'HWHUJHQWV 'LVLQIHFWDQWVDQG3URWHFWLYH%HYHUDJHV
,I ULVNV DW ZRUN FDQQRW EH HOLPLQDWHG RU VXIILFLHQWO\ OLPLWHG E\ WHFKQLFDO PHDQV RU E\ WKH UHRUJDQL]DWLRQRIZRUNWKHHPSOR\HUVKDOOSURYLGHKLVHPSOR\HHVZLWKSHUVRQDOZRUNLQJSURWHFWLRQDLGV LQ &]HFK ³RVREQt RFKUDQQp SUDFRYQt SURVW HGN\´ 7KHVH VKDOO PHDQ DLGV PHDQV ZKLFK SURWHFW HPSOR\HHV DJDLQVW ULVNV SRVH QR GDQJHU WR WKHLU KHDOWK GR QRW LQWHUIHUH ZLWK WKHLU ZRUN DQG ZKLFK FRPSO\ZLWKWKHUHTXLUHPHQWVODLGGRZQLQWKHLPSOHPHQWLQJVWDWXWRU\SURYLVLRQV1RWHH ,QDZRUNLQJHQYLURQPHQWZKHUHFORWKLQJRUIRRWZHDULVVXEMHFWWRXQXVXDOZHDUDQGWHDURUVRLOLQJ WKH HPSOR\HU VKDOO DOVR SURYLGH KLV HPSOR\HHV ZLWK ZRUNLQJ FORWKHV RU IRRWZHDU DV SHUVRQDO ZRUNLQJ SURWHFWLRQDLGV
7KHHPSOR\HUVKDOOSURYLGHKLVHPSOR\HHVZLWKZDVKLQJDJHQWVGHWHUJHQWVDQGGLVLQIHFWDQWVEDVHGRQ DQ DVVHVVPHQW RI WKH GHJUHH RI GLUWLQHVV WKHLU ZRUN HQWDLOV DQG WKHLU H[SRVXUH WR LUULWDWLRQ DJHQWV FRPSRXQGV DQG LQ WKH FDVH RI HPSOR\HHV ZRUNLQJ DW ZRUNSODFHV ZLWK XQVDWLVIDFWRU\ PLFURFOLPDWLF FRQGLWLRQV DOVR ZLWK SURWHFWLYH EHYHUDJHV WR WKH H[WHQW DQG XQGHU WKH FRQGLWLRQV ODLG GRZQ LQ VSHFLDO VWDWXWRU\SURYLVLRQV1RWHI 7KHHPSOR\HUVKDOONHHSSHUVRQDOZRUNLQJSURWHFWLRQDLGVLQDXVDEOHFRQGLWLRQDQGPRQLWRUWKHLUXVH
3HUVRQDOZRUNLQJSURWHFWLRQDLGVZDVKLQJDJHQWVGHWHUJHQWVGLVLQIHFWDQWVDQGSURWHFWLYHEHYHUDJHV VKDOOEHVXSSOLHGIUHHRIFKDUJHE\WKHHPSOR\HUWRHPSOR\HHVDFFRUGLQJWRDOLVWGUDZQXSRQWKHEDVLVRI DQDVVHVVPHQWRIULVNVDQGVSHFLILFFRQGLWLRQV7KHHPSOR\HUPD\QRWUHTXLUHILQDQFLDOFRPSHQVDWLRQIRU WKHVXSSO\RISHUVRQDOZRUNLQJSURWHFWLRQDLGV
7KH *RYHUQPHQW VKDOO OD\ GRZQ LQ D GHFUHH WKH VFRSH DQG GHWDLOHG FRQGLWLRQV IRU WKH VXSSO\ RI SHUVRQDOZRUNLQJSURWHFWLRQDLGVZDVKLQJDJHQWVGHWHUJHQWVGLVLQIHFWDQWVDQGSURWHFWLYHEHYHUDJHV
6HFWLRQE
6DIHW\1RWLFHVDQG6LJQV
:KHUHULVNVZKLFKSRVHDWKUHDWWRHPSOR\HHV OLYHVDQGKHDOWKFDQQRWEHHOLPLQDWHGRUVXIILFLHQWO\ OLPLWHGE\WHFKQLFDOPHDQVRUE\WKHUHRUJDQL]DWLRQRIZRUNWKHHPSOR\HUVKDOOSRVWVDIHW\QRWLFHVDQG VLJQVSURYLGLQJLQIRUPDWLRQRULQVWUXFWLRQVRQVDIHW\DQGWKHSURWHFWLRQRIKHDOWKDWZRUNDQGIDPLOLDUL]H HPSOR\HHVZLWKWKHP6DIHW\QRWLFHVDQGVLJQVPD\EHSLFWRULDOVRQLFRULOOXPLQDWHG
7KH*RYHUQPHQWVKDOOVWLSXODWHLQDGHFUHHUHTXLUHPHQWVIRUWKHYLVXDODSSHDUDQFHDQGWKHORFDWLRQRI VDIHW\QRWLFHVDQGVLJQV
6HFWLRQF
(PSOR\HU V2EOLJDWLRQV5HJDUGLQJ,QMXULHVDW:RUNDQG2FFXSDWLRQDO'LVHDVHV
7KHHPSOR\HUVKDOOLQYHVWLJDWHWKHFDXVHVDQGFLUFXPVWDQFHVRIDQLQMXU\DWZRUNLQWKHSUHVHQFHRI WKH HPSOR\HH FRQFHUQHG SURYLGHG WKDW KLV VWDWH RI KHDOWK DOORZV WKLV DQG ZLWK WKH SDUWLFLSDWLRQ RI WKH FRPSHWHQWWUDGHXQLRQRUJDQL]DWLRQERG\ RUWKHKHDOWKDQGVDIHW\UHSUHVHQWDWLYHXQWLOVXFKLQYHVWLJDWLRQ WKHHPSOR\HUVKDOOQRWZLWKRXWVHULRXVUHDVRQVFKDQJHWKHFRQGLWLRQVDWWKHSODFHRIWKHLQMXU\
7KHHPSOR\HUVKDOOUHFRUGDQGNHHSRQILOHGRFXPHQWVUHODWLQJWRDOOLQMXULHVSHUVRQDODFFLGHQWV DW ZRUNZKLFKUHVXOWLQ D DQLQMXU\WRDQHPSOR\HHZKLFKLQFDSDFLWDWHVKLPIRUPRUHWKDQWKUHHFDOHQGDUGD\V
E DQHPSOR\HH VGHDWK
2QHFRS\RIDUHFRUGRIDQLQMXU\DWZRUNVKDOOEHJLYHQWRWKHLQMXUHGHPSOR\HHDQGLIVXFKLQMXU\FDXVHV DQHPSOR\HH VGHDWKWRKLVIDPLO\PHPEHUV
7KHHPSOR\HUVKDOOUHFRUGLQKLVERRNRILQMXULHVDOOLQMXULHVDWZRUNHYHQZKHQQRLQFDSDFLW\WRZRUN ZDVFDXVHGRUWKHLQFDSDFLW\GLGQRWODVWIRUPRUHWKDQWKUHHFDOHQGDUGD\V
7KHHPSOR\HUVKDOOUHSRUWDQLQMXU\DWZRUNDQGVHQGDFRS\RIWKHUHFRUGRIVXFKLQMXU\WRDOOWKH GHWHUPLQHGERGLHVRUJDQV DQGLQVWLWXWLRQV 7KHHPSOR\HUVKDOOWDNHVWHSVWRSUHYHQWWKHUHFXUUHQFHRILQMXULHVDWZRUN
7KH HPSOR\HU VKDOO NHHS UHFRUGV RI DOO HPSOR\HHV VXIIHULQJ IURP DQ RFFXSDWLRQDO GLVHDVH ZKLFK RULJLQDWHGDWWKHHPSOR\HU VZRUNSODFHVDQGHQVXUHWKDWZRUNLQJFRQGLWLRQVZKLFKJLYHULVHWRWKHGDQJHU RIRFFXSDWLRQDOGLVHDVHVRUKDYHFDXVHGDQRFFXSDWLRQDOGLVHDVHDUHHOLPLQDWHG
7KH *RYHUQPHQW VKDOO OD\ GRZQ LQ D GHFUHH WKH PHWKRG RI NHHSLQJ UHFRUGV RQ ILOH UHSRUWLQJ DQG VHQGLQJUHFRUGVRILQMXULHVDVSHFLPHQUHFRUGVKRZLQJWKHGHWDLOVUHTXLUHGDQGDOLVWRIERGLHVRUJDQV DQGLQVWLWXWLRQVWRZKLFKDQLQMXU\DWZRUNLVWREHUHSRUWHGDQGDFRS\RIWKHUHFRUGLVWREHVHQW
6HFWLRQ
:RUNSODFHVDQGWKH:RUNLQJ(QYLURQPHQW
7KH HPSOR\HU VKDOO HQVXUH WKDW WKH OD\RXW DQG FRQVWUXFWLRQDO DVSHFWV RI WKH ZRUNSODFH DQG LWV IDFLOLWLHV HTXLSPHQW SURYLGH HPSOR\HHV ZLWK ZRUNLQJ FRQGLWLRQV ZKLFK ZLWK UHJDUGWRVDIHW\K\JLHQH DQGWKHSURWHFWLRQRIKHDOWKDWZRUNFRPSO\ZLWKWKHVDIHW\UHTXLUHPHQWVDQGK\JLHQHSDUDPHWHUVIRUWKH ZRUNLQJHQYLURQPHQWDQGZRUNSODFHVLQSDUWLFXODUE\HQVXULQJWKDW D ZRUNSODFHV FRUULGRUV VWDLUFDVHV DQG RWKHU URXWHV DUH RI WKH UHTXLUHG GLPHQVLRQV DQG SUHVFULEHG VXUIDFHDQGHTXLSSHGIRUWKHDFWLYLWLHVZKLFKDUHFDUULHGRXWWKHUH
E ZRUNSODFHV DUH SURSHUO\ OLW ZKHUH SRVVLEOH E\ GD\OLJKW DQG KDYH WKH SUHVFULEHG PLFURFOLPDWLF FRQGLWLRQV HVSHFLDOO\ LQ WHUPV RI WKH YROXPH RI DLU YHQWLODWLRQ KXPLGLW\ WHPSHUDWXUH DQG ZDWHU VXSSO\
F VDQLWDU\ IDFLOLWLHV FKDQJLQJ URRPV DQG VSDFHV IRU WKH VWRULQJ RI HPSOR\HHV SHUVRQDO SRVVHVVLRQV UHVWURRPV DQG FDWHULQJ IDFLOLWLHV DUH RI WKH SUHVFULEHG GLPHQVLRQV DQG ILQLVK DQG HTXLSSHG LQ WKH SUHVFULEHGPDQQHU
G HPHUJHQF\H[LWVDQGWUDIILFURXWHVOHDGLQJWRWKHPDUHNHSWIUHH
H WKHVSDFHVSXUVXDQWWROHWWHUVD WRG DUHUHJXODUO\PDLQWDLQHGNHSWWLG\DQGFOHDQHG
I ZRUNSODFHVDUHHTXLSSHGWRSURYLGHILUVWDLGDQGWRHQDEOHWKHVXPPRQLQJRIWKHHPHUJHQF\PHGLFDO VHUYLFHRQWKHVFDOHDJUHHGZLWKWKHFRPSHWHQWIDFLOLW\SURYLGLQJSUHYHQWLYHPHGLFDOFDUH
6HFWLRQD
3URGXFWLRQDQG:RUNLQJ(TXLSPHQWDQG0DFKLQHU\
7KHHPSOR\HUVKDOOHQVXUHWKDWPDFKLQHU\WHFKQLFDOHTXLSPHQWYHKLFOHVLQVWUXPHQWVDQGWRROVDUH VXLWDEOHIRUWKHZRUNIRUZKLFKWKH\DUHJRLQJWREHXVHGIURPWKHVWDQGSRLQWRIVDIHW\DQGWKHSURWHFWLRQ RIKHDOWKDWZRUN0DFKLQHU\WHFKQLFDOHTXLSPHQWPHDQVRIWUDQVSRUWLQVWUXPHQWVDQGWRROVPXVWEH
D HTXLSSHGZLWKGHYLFHVZKLFKSURWHFWWKHHPSOR\HHV OLYHVDQGKHDOWK
E HTXLSSHG RU PRGLILHG LQ VXFK D PDQQHU WKDW WKH\ GR QRW H[SRVH WKH HPSOR\HHV WR XQFRPIRUWDEOH ZRUNLQJSRVLWLRQVDQGWKHXQGHVLUDEOHHIIHFWVRIQRLVHDQGYLEUDWLRQV
F UHJXODUO\DQGSURSHUO\PDLQWDLQHGFKHFNHGDQGUHYLHZHG
7KH*RYHUQPHQWVKDOOGHWHUPLQHLQDGHFUHHGHWDLOHGUHTXLUHPHQWVIRUWKHVDIHRSHUDWLRQDQGXVHRI PDFKLQHVWHFKQLFDOHTXLSPHQWPHDQVRIWUDQVSRUWLQVWUXPHQWVDQGWRROV
6HFWLRQE
6SHFLDO([SHUWLVH6SHFLDO9RFDWLRQDO&DSDELOLWLHV
7HFKQLFDOHTXLSPHQWZKLFKUHSUHVHQWVDQLQFUHDVHGGDQJHUWRWKHOLYHVDQGKHDOWKRIHPSOR\HHVPD\ RQO\EHRSHUDWHGE\HPSOR\HHVZKRDUHPHGLFDOO\ILWDQGKDYHWKHQHFHVVDU\H[SHUWLVHVSHFLDOYRFDWLRQDO VNLOOV
$FWLYLWLHV ZKLFK SRVH DQ LQFUHDVHG GDQJHU WR WKH OLYHV DQG KHDOWK RI HPSOR\HHV PD\ RQO\ EH SHUIRUPHGE\HPSOR\HHVZKRDUHPHGLFDOO\ILWDQGKDYHWKHQHFHVVDU\H[SHUWLVHVSHFLDOYRFDWLRQDOVNLOOV
$SUHUHTXLVLWHIRUWKHH[SHUWLVHSXUVXDQWWRVXEVHFWLRQV DQG VKDOOEHWKDWHPSOR\HHVKDYHEHHQ UHFRJQL]HGDVPHGLFDOO\ILWE\WKHFRPSHWHQWRFFXSDWLRQDOKHDOWKFDUHIDFLOLW\DQGIXUWKHUWKDWWKH\KDYH
D UHDFKHGWKHDJHOLPLWSUHVFULEHGE\VSHFLDOVWDWXWRU\SURYLVLRQV1RWHJ
E XQGHUJRQHYRFDWLRQDOHGXFDWLRQDQGKDYHWKHUHTXLUHGSHULRGRIYRFDWLRQDOH[SHULHQFH
7KH *RYHUQPHQW VKDOO GHWHUPLQH LQ D GHFUHH ZKLFK WHFKQLFDO HTXLSPHQW DQG ZKLFK DFWLYLWLHV DUH FRQVLGHUHGWRSRVHDQLQFUHDVHGGDQJHUWROLIHDQGKHDOWKDQGVWLSXODWHWKHGHWDLOHGSUHUHTXLVLWHVIRUWKH H[SHUWLVHVSHFLDOYRFDWLRQDOVNLOOV RIHPSOR\HHVSXUVXDQWWRVXEVHFWLRQV WR
6HFWLRQF
5LVN)DFWRUVLQ:RUNLQJ&RQGLWLRQVDQG&RQWUROOHG$UHDV:RUNVWDWLRQV
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
7KH HPSOR\HU VKDOO HQVXUH WKDW DOO ZRUN LQYROYLQJ DVEHVWRV FKHPLFDO FDUFLQRJHQV DQG ELRORJLFDO DJHQWV DQG DQ\ ZRUN SURFHVVHV LQYROYLQJ WKH ULVN RI FKHPLFDO FDUFLQRJHQV LV FDUULHG RXW LQ FRQWUROOHG DUHDVDWFRQWUROOHGZRUNVWDWLRQV ZKLFKVKDOOEHGHVLJQDWHGDQGPDGHLQDFFHVVLEOHWRDOOHPSOR\HHVRWKHU WKDQWKRVHZKRZRUNWKHUHRUZKRFDUU\RXWUHSDLUVPDLQWHQDQFHWHVWVFKHFNVLQVSHFWLRQVRUVXSHUYLVLRQ LQ WKH FRQWUROOHG DUHD ZRUNVWDWLRQ 7KH HPSOR\HU VKDOO DOVR LQFOXGH RWKHU ZRUN LQ FRQWUROOHG DUHDV ZRUNVWDWLRQV DFFRUGLQJWRWKHGHJUHHRIRFFXUUHQFHRIULVNIDFWRUV
7KHHPSOR\HUVKDOONHHSUHFRUGVRIFRQWUROOHGDUHDVZRUNVWDWLRQV DQGHPSOR\HHVZKRHQWHUWKHVH DUHDVRUZKRGRZRUNWKHUHSXUVXDQWWRVXEVHFWLRQ DQGWKHVHVKDOOEHNHSWIRUWKHSHULRGODLGGRZQLQ VSHFLDOVWDWXWRU\SURYLVLRQV1RWHF 7KHUHFRUGVVKDOOFRQWDLQ
D WKHHPSOR\HH VIXOOQDPHDQGSHUVRQDOQXPEHU
E WKHQDPHRIWKHFRQWUROOHGDUHDZRUNVWDWLRQ DQGWKHGDWHRILWVHVWDEOLVKLQJRSHQLQJ DQGFORVLQJLW GRZQLHWHUPLQDWLQJLWVRSHUDWLRQ
F DGHVFULSWLRQRIWKHZRUNXQGHUWDNHQ
G WKHSXUSRVHRIHQWU\DQGSHULRGRIVWD\LQWKHFRQWUROOHGDUHDZRUNVWDWLRQ H WKHQXPEHURIVKLIWVZRUNHGWKHUH
I WKH W\SHV RI SUHYHQWLYH PHGLFDO H[DPLQDWLRQV ZKLFK WKH HPSOR\HH XQGHUZHQW DQG GHWDLOV RI ZRUN UHODWHGVSHFLDOYDFFLQDWLRQV
J GDWDRQWKHUHVXOWVRIPRQLWRULQJRIWKHHIIHFWVFDXVHGE\ULVNIDFWRUVWRKLVRUJDQLVP
K DOLVWRIGDQJHURXVFKHPLFDOVXEVWDQFHVDQGFRPSRXQGVXVHGLQWKHFRQWUROOHGDUHDDWWKHFRQWUROOHG ZRUNVWDWLRQ
L DUHFRUGRIDQ\XQXVXDOVLWXDWLRQVDQGFKDQJHVLQWKHLQIRUPDWLRQVWDWHGLQWKHUHFRUGVWRJHWKHUZLWK WKHGDWHRIWKHLURFFXUUHQFH
(DWLQJGULQNLQJDQGVPRNLQJLQDQ\FRQWUROOHGDUHDVKDOOEHSURKLELWHGWKHHPSOR\HUVKDOOGHWHUPLQH VSHFLDO DUHDV IRU WKHVH SXUSRVHV 2QO\ SHUVRQV SURYLGHG ZLWK WKH SHUVRQDO SURWHFWLYH ZRUNLQJ DLGV VSHFLILHGIRUZRUNLQWKHFRQWUROOHGDUHDZRUNVWDWLRQ PD\HQWHULW
7KHIROORZLQJSHUVRQVPD\QRWZRUNLQFRQWUROOHGDUHDVDGROHVFHQWVHYHQGXULQJWKHLUYRFDWLRQDO WUDLQLQJ SUHJQDQWDQGEUHDVWIHHGLQJZRPHQDQGPRWKHUVXQWLOWKHHQGRIWKHQLQWKPRQWKDIWHUJLYLQJ ELUWKWRDFKLOG
7KH *RYHUQPHQW VKDOO LGHQWLI\ LQ D GHFUHH ULVN IDFWRUV LQ ZRUNLQJ FRQGLWLRQV WKHLU FODVVLILFDWLRQ K\JLHQHOLPLWVWKHPDQQHURIPRQLWRULQJDQGDVVHVVLQJULVNIDFWRUVDQGWKHPLQLPXPPHDVXUHVWREHWDNHQ IRUWKHSURWHFWLRQRIHPSOR\HHV KHDOWK
6HFWLRQG
3URKLELWLRQRQ&HUWDLQ:RUN
,W VKDOO EH SURKLELWHG WR ZRUN ZLWK QDSKW\ODPLQH DQG LWV VDOWV DPLQRELSKHQ\O DQG LWV VDOWV EHQ]LGLQH DQG LWV VDOWV QLWURGLSKHQ\O DVEHVWRV DQG SRO\FKORULQDWHG ELSKHQ\OV H[FHSW IRU PRQR DQG GLFKORULQDWHGELSKHQ\OVDQGZLWKSUHSDUDWLRQVFRQWDLQLQJPRUHWKDQRIQDSKW\ODPLQHDQGLWVVDOWV DPLQRELSKHQ\O DQG LWV VDOWV EHQ]LGLQH DQG LWV VDOWV RU QLWURGLSKHQ\O RU PRUH WKDQ RI SRO\FKORULQDWHG ELSKHQ\OV 7KH SURKLELWLRQ RQ VXFK ZRUN VKDOO QRW DSSO\ WR ZRUN UHODWLQJ WR ODERUDWRU\ UHVHDUFKDQDO\WLFDOZRUNWKHGLVSRVDORIXVHOHVVVWRFNVZDVWHDQGHTXLSPHQWFRQWDLQLQJWKHVHVXEVWDQFHV DQGSUHSDUDWLRQVDQGWKHGLVSRVDORIWKHVHFRPSRXQGVZKHQWKH\RULJLQDWHDVDQXQGHVLUDEOHE\SURGXFW ZKHQSURFHVVLQJDQRWKHUVXEVWDQFHRUSUHSDUDWLRQ
6HFWLRQH
2UJDQL]DWLRQRI:RUNDQG:RUNLQJ3URFHGXUHV
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
E DUHQRWHQGDQJHUHGE\IDOOLQJRUVOLGLQJREMHFWVRUPDWHULDOV F DUHSURWHFWHGDJDLQVWDIDOOVOLGLQJ
G DUHQRWHQGDQJHUHGE\WUDIILFPHDQVRIWUDQVSRUW DWZRUNSODFHV
H GRQRWZRUNDORQHDWZRUNSODFHVZKHUHWKHUHLVLQFUHDVHGULVNZLWKRXWEHLQJLQWKHYLHZRIDQRWKHU HPSOR\HHXQOHVVWKHLUSURWHFWLRQLVHQVXUHGE\WKHHPSOR\HULQDQRWKHUPDQQHU
I GRQRWKDQGOHORDGVPDQXDOO\ZKLFKPLJKWEHGDPDJLQJWRWKHLUKHDOWKLQSDUWLFXODUWKHVSLQH1RWH M
,Q D GHFUHH WKH *RYHUQPHQW VKDOO VSHFLI\ WKH PHWKRG RI RUJDQL]LQJ ZRUN DQG ZRUNLQJ SURFHGXUHV
ZKLFKWKHHPSOR\HUPXVWHQVXUH
6HFWLRQ
(PSOR\HHV 5LJKWVDQG2EOLJDWLRQV
(PSOR\HHVVKDOOKDYHDULJKWWRKDYHWKHLUVDIHW\VDIHJXDUGHGDQGWKHLUKHDOWKSURWHFWHGDWZRUNWR LQIRUPDWLRQRQWKHULVNVZKLFKWKHLUZRUNHQWDLOVDQGWRLQIRUPDWLRQDERXWPHDVXUHVWDNHQWRSURWHFWWKHP DJDLQVWWKHHIIHFWVRIVXFKULVNV
(PSOR\HHVVKDOOKDYHWKHULJKWWRUHIXVHWRGRZRUNZKLFKWKH\UHDVRQDEO\FRQVLGHUDVSRVLQJGLUHFW DQGVLJQLILFDQWWKUHDWWRWKHLUOLYHVRUKHDOWKRUWKHOLYHVRUKHDOWKRIRWKHUSHUVRQVVXFKDUHIXVDOFDQQRW EHUHJDUGHGDVDQHPSOR\HH VQRQSHUIRUPDQFHRIKLVREOLJDWLRQKLVGXW\
(PSOR\HHVVKDOOKDYHWKHULJKWDQGGXW\REOLJDWLRQ WRFRQWULEXWHWRWKHFUHDWLRQRIDKHDOWK\DQGVDIH ZRUNLQJHQYLURQPHQWLQSDUWLFXODUE\LPSOHPHQWLQJWKHPHDVXUHVZKLFKDUHVSHFLILHGLQSURYLVLRQV RU ZKLFKDUHDGRSWHGE\WKHHPSOR\HUDQGE\WKHLUSDUWLFLSDWLRQLQWKHVROXWLRQRILVVXHVUHODWLQJWRVDIHW\ DQGSURWHFWLRQRIKHDOWKDWZRUN
(YHU\HPSOR\HHVKDOOWDNHDOOSRVVLEOHFDUHRIKLVRZQVDIHW\DQGKHDOWKDQGWKHVDIHW\DQGKHDOWKRI RWKHUSHUVRQVRQZKRPKLVFRQGXFWRUQHJOLJHQFHDWZRUNKDVDQLPPHGLDWHHIIHFW$NQRZOHGJHRIWKH UHJXODWLRQV SURYLVLRQV DQG WKH HPSOR\HU V UHTXLUHPHQWV FRQFHUQLQJ VDIHW\ DQG SURWHFWLRQ RI KHDOWK DW ZRUN VKDOO IRUP DQ LQWHJUDO DQG SHUPDQHQW SDUW RI HDFK HPSOR\HH V VNLOOV 7KH HPSOR\HH VKDOO LQ SDUWLFXODU
D WDNHSDUWLQWUDLQLQJRUJDQL]HGE\KLVHPSOR\HULQWKHLQWHUHVWRIVDIHW\DQGWKHSURWHFWLRQRIKHDOWKDW ZRUNDQGKDYHKLVNQRZOHGJHFKHFNHG
E XQGHUJR WKH PHGLFDO FKHFNV YDFFLQDWLRQV H[DPLQDWLRQV DQG GLDJQRVWLF WHVWV SUHVFULEHG E\ VSHFLDO VWDWXWRU\SURYLVLRQV1RWHF
F FRPSO\ZLWKWKHVWDWXWRU\DQGRWKHUUHJXODWLRQVDQGWKHHPSOR\HU VLQVWUXFWLRQVFRQFHUQLQJVDIHW\DQG WKH SURWHFWLRQ RI KHDOWK DW ZRUN ZLWK ZKLFK KH ZDV IDPLOLDUL]HG DQG IROORZ WKH SULQFLSOHV RIVDIH FRQGXFWDWWKHZRUNSODFHDQGLQIRUPDWLRQSURYLGHGE\WKHHPSOR\HU
G FRPSO\ ZLWK WKHGHWHUPLQHGZRUNLQJSURFHGXUHVXVHWKHSUHVFULEHGZRUNLQJHTXLSPHQWPHDQVRI ZRUN YHKLFOHVSHUVRQDOSURWHFWLYHZRUNLQJDLGVDQGSURWHFWLYHHTXLSPHQWDQGQRWGHOLEHUDWHO\DOWHU DQGSXWWKHPRXWRIXVH
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
I LQIRUPKLVVXSHULRURIDQ\LUUHJXODULWLHVDQGGHIHFWVDWKLVZRUNSODFHZKLFKPLJKWHQGDQJHUVDIHW\RU KHDOWKDWZRUNDQGDVIDUDVLVSRVVLEOHKHOSWRUHFWLI\WKHPLPPHGLDWHO\LQIRUPKLVVXSHULRURIDQ\ LQGXVWULDOLQMXU\LHLQMXU\DWZRUN KHKDVVXVWDLQHGLIKLVFRQGLWLRQDOORZVWKLVDQGRIDQ\LQMXU\DW ZRUNVXVWDLQHGE\DQRWKHUSHUVRQLIKHZLWQHVVHGLWDQGKHOSWRHVWDEOLVKLWVFDXVHV
J WDNHDWHVWLIRUGHUHGWRGRVRE\WKHFRPSHWHQWVXSHULRUDVVSHFLILHGLQWKHZRUNFRGHIRUWKHSXUSRVH RIHVWDEOLVKLQJZKHWKHUKHLVXQGHUWKHLQIOXHQFHRIDOFRKRORURWKHUDGGLFWLYHVXEVWDQFHV
7KH SURYLVLRQV RI VXEVHFWLRQV WR VKDOOVLPLODUO\DSSO\WRSHUVRQVZKRDUHDWWKHHPSOR\HU V ZRUNSODFHVZLWKKLVNQRZOHGJH
6HFWLRQ
,QVSHFWLRQE\7UDGH8QLRQ%RGLHV
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
E WR FKHFN ZKHWKHU HPSOR\HUV DUH SURSHUO\ LQYHVWLJDWLQJ LQMXULHV DW ZRUN LQGXVWULDO LQMXULHV DQG KHOSLQJWRHVWDEOLVKWKHFDXVHVRIVXFKLQMXULHVDQGRFFXSDWLRQDOGLVHDVHVRUHYHQWRLQYHVWLJDWHWKHVH WKHPVHOYHV
F WRUHTXLUHWKDWWKHHPSOR\HULQDELQGLQJLQVWUXFWLRQUHFWLILHVIDXOWVLQWKHRSHUDWLRQRIPDFKLQHU\DQG HTXLSPHQWDQGLQZRUNLQJSURFHGXUHVDQGLIWKHUHLVDGLUHFWWKUHDWWRWKHOLIHRUKHDOWKRIHPSOR\HHV WRIRUELGIXUWKHUZRUN
G WRSURKLELWRYHUWLPHZRUNLQJDQGQLJKWZRUNZKLFKHQGDQJHUVWKHVDIHW\DQGWKHSURWHFWLRQRIKHDOWK RIWKHHPSOR\HHV
H WRSDUWLFLSDWHLQQHJRWLDWLRQVGLVFXVVLRQV RQLVVXHVRIVDIHW\DQGWKHSURWHFWLRQRIKHDOWKDWZRUN
7UDGHXQLRQRUJDQL]DWLRQVERGLHV VKDOOQRWLI\WKHFRPSHWHQWVSHFLDOL]HGVWDWHVXSHUYLVRU\DXWKRULW\ ZLWKRXWGHOD\RIDQ\PHDVXUHVWDNHQXQGHUWKHSUHFHGLQJVXEVHFWLRQOHWWHUF RUG ,IDQHPSOR\HUVR UHTXHVWV WKH FRPSHWHQW VSHFLDOL]HG VWDWH VXSHUYLVRU\ DXWKRULW\ VKDOO UHYLHZ WKH WUDGH XQLRQ V PHDVXUHV XQWLOLWPDNHVDGHFLVLRQWKHWUDGHXQLRQ VPHDVXUHVVKDOODSSO\
7KH6WDWHVKDOOUHLPEXUVHWKHFRVWRISHUIRUPDQFHRIVXSHUYLVLRQFRQFHUQLQJVDIHW\DQGWKHSURWHFWLRQ RIKHDOWKDWZRUN
6HFWLRQD
(PSOR\HHV 3DUWLFLSDWLRQLQWKH6ROXWLRQRI,VVXHV5HODWLQJWR6DIHW\DQGWKH3URWHFWLRQRI+HDOWKDW :RUN
(PSOR\HHV VKDOO WDNH SDUW LQ WKH VROXWLRQ RI LVVXHV UHODWLQJ WRVDIHW\DQGKHDOWKSURWHFWLRQDWZRUN WKURXJKWKHLUWUDGHXQLRQRUJDQL]DWLRQVERGLHV RUWKHLUKHDOWKDQGVDIHW\UHSUHVHQWDWLYHVVHFWLRQ
7KH HPSOR\HU VKDOO DOORZ WKH FRPSHWHQW WUDGH XQLRQ RUJDQL]DWLRQV RUJDQV ERGLHV RU KHDOWK DQG VDIHW\UHSUHVHQWDWLYHVRUKLVHPSOR\HHVGLUHFWO\WRSDUWLFLSDWHLQGLVFXVVLRQVRQVDIHW\DQGWKHSURWHFWLRQ RI KHDOWK DW ZRUN RU SURYLGH WKHP ZLWK LQIRUPDWLRQ DERXW DQ\ VXFK GLVFXVVLRQV 7KH HPSOR\HU VKDOO LQIRUPWKHPLQSDUWLFXODUDERXW D WKHDVVHVVPHQWRIULVNVDQGWKHDGRSWLRQDQGLPSOHPHQWDWLRQRIPHDVXUHVWRUHGXFHWKHHIIHFWVRIVXFK ULVNV
E RUJDQL]DWLRQRIWUDLQLQJDQGLQVWUXFWLRQVFRQFHUQLQJVDIHW\DQGKHDOWKSURWHFWLRQDWZRUN
F WKH QDPHV RI HPSOR\HHV UHVSRQVLEOH IRU RUJDQL]LQJ ILUVW DLG DQG VXPPRQLQJ PHGLFDO DVVLVWDQFH ILUHILJKWHUVDQGWKH3ROLFHDQGIRURUJDQL]LQJWKHHYDFXDWLRQRIHPSOR\HHV
G WKHFKRLFHRIDVSHFLILFPHGLFDOIDFLOLW\WRSURYLGHRFFXSDWLRQDOKHDOWKFDUH
H WKHFKRLFHRIHPSOR\HHVWRSURYLGHH[SHUWLVHLQULVNSUHYHQWLRQVHFWLRQE
I DQ\RWKHUPDWWHUZKLFKFDQKDYHDVXEVWDQWLDOEHDULQJRQVDIHW\DQGSURWHFWLRQRIKHDOWKDWZRUN
7KH HPSOR\HUV VKDOO OLVWHQ WR DOO LQIRUPDWLRQ FRPPHQWV DQG SURSRVHG PHDVXUHV SUHVHQWHG E\ KLV HPSOR\HHVRUWKHLUUHSUHVHQWDWLYHV
7KH FRPSHWHQW WUDGH XQLRQ RUJDQL]DWLRQ RUJDQ ERG\ RU KHDOWK DQG VDIHW\ UHSUHVHQWDWLYH RU WKH HPSOR\HHVVKDOOFRRSHUDWHZLWKWKHHPSOR\HUDQGHPSOR\HHVZKRKDYHVSHFLDOH[SHUWLVHLQGHDOLQJZLWK ULVN SUHYHQWLRQ VR WKDW WKH HPSOR\HU FDQ HQVXUH VDIH XQREMHFWLRQDEOH DQG QRQKD]DUGRXV ZRUNLQJ FRQGLWLRQVDQGPHHWDOOWKHREOLJDWLRQVSUHVFULEHGE\VSHFLDOVWDWXWRU\SURYLVLRQVDQGPHDVXUHVWDNHQE\ WKHFHQWUDODXWKRULWLHVFRQFHUQHGZLWKVXSHUYLVLRQRIVDIHW\DQGSURWHFWLRQRIKHDOWKDWZRUNSXUVXDQWWR RWKHUVWDWXWRU\SURYLVLRQV1RWHO
7KHHPSOR\HUVKDOORUJDQL]HDWOHDVWRQFHD\HDUFKHFNVRQVDIHW\DQGWKHSURWHFWLRQRIKHDOWKDWZRUN DW DOO KLV ZRUNSODFHV DQG IDFLOLWLHV DFWLQJ WKHUHE\ LQ DJUHHPHQW ZLWK WKH FRPSHWHQW WUDGH XQLRQ RUJDQL]DWLRQ ERG\ RU WKH HPSOR\HHV KHDOWK DQG VDIHW\ UHSUHVHQWDWLYHV DQG UHFWLI\ DQ\ DVFHUWDLQHG LUUHJXODULWLHV
7KH HPSOR\HU VKDOO SURYLGH WUDLQLQJ IRU WKH FRPSHWHQW WUDGH XQLRQ ERGLHV RUJDQV DQG KHDOWK DQG VDIHW\UHSUHVHQWDWLYHVVRWKDWWKH\FDQSURSHUO\SHUIRUPWKHLUIXQFWLRQDQGKHVKDOODOVRPDNHDYDLODEOHWR WKHPWKHVWDWXWRU\SURYLVLRQVDQGRWKHUUHJXODWLRQVRQVDIHW\DQGWKHSURWHFWLRQRIKHDOWKDWZRUNWRJHWKHU ZLWKGRFXPHQWVRQ D WKHVHHNLQJRXWDQGDVVHVVPHQWRIULVNVPHDVXUHVWDNHQWRHOLPLQDWHULVNVDQGWRUHGXFHWKHLUHIIHFWV RQHPSOR\HHVDQGWKHVXLWDEOHRUJDQL]DWLRQRIHPSOR\HHV VDIHW\DQGSURWHFWLRQRIKHDOWKDWZRUN
E UHFRUGVDQGUHSRUWVRILQMXULHVDWZRUNLQGXVWULDOLQMXULHV DQGUHFRJQL]HGRFFXSDWLRQDOGLVHDVHV
F LQVSHFWLRQV FDUULHG RXW DQG PHDVXUHV WDNHQ E\ VSHFLDOLVW DXWKRULWLHV FRQFHUQHG ZLWK VDIHW\ DQG SURWHFWLRQRIKHDOWKDWZRUNSXUVXDQWWRRWKHUVSHFLDOSURYLVLRQV1RWHO
7KH HPSOR\HU VKDOO DOORZ WKH FRPSHWHQW WUDGH XQLRQ RUJDQL]DWLRQV RUJDQVERGLHV DQGKHDOWKDQG VDIHW\ UHSUHVHQWDWLYHV WR PDNH FRPPHQWV ZKHQ LQVSHFWLRQV DUH FDUULHG RXW E\ VSHFLDOL]HG DJHQFLHV FRQFHUQHG ZLWK WKH VXSHUYLVLRQ RI VDIHW\ DQG SURWHFWLRQ RI KHDOWK DW ZRUN SXUVXDQW WR VSHFLDO VWDWXWRU\ SURYLVLRQV1RWHO
6HFWLRQ
7KHSURYLVLRQVRI3DUW7ZR&KDSWHU9VKDOODSSO\DVDSSURSULDWHWR
D HPSOR\HUVZKRDUHLQGLYLGXDOVDQGZKRDOVRZRUNWKHPVHOYHV
E LQGLYLGXDOVZKRUXQDEXVLQHVVSXUVXDQWWRRWKHUVWDWXWRU\SURYLVLRQV1RWH DQGGRQRWHPSOR\ RWKHUV
F VSRXVHVRUFKLOGUHQRIRQHRIWKHSHUVRQVUHIHUUHGWRLQOHWWHUVD RUE ZKRZRUNZLWKWKDWSHUVRQ
6HFWLRQ
6SHFLDOL]HG6XSHUYLVLRQE\WKH6WDWH
6SHFLDOL]HG VWDWH VXSHUYLVLRQ RI VDIHW\ DQG WKH SURWHFWLRQ RI KHDOWK DW ZRUN VKDOO EH UHJXODWHG E\ VSHFLDOSURYLVLRQVUHJXODWLRQV
&+$37(59,
&$5(2)(03/2<((6
'LYLVLRQ
(PSOR\HHV :RUNLQJDQG/LYLQJ&RQGLWLRQVDQG'HYHORSPHQWRI7KHLU6NLOOV 6HFWLRQ
(PSOR\HUV VKDOO FUHDWH ZRUNLQJ FRQGLWLRQV ZKLFK HQDEOH WKH VDIH SHUIRUPDQFH RI ZRUN HOLPLQDWH ULVN\ DQG H[KDXVWLQJ ZRUN DQG HVWDEOLVK PDLQWDLQ DQG LPSURYH IDFLOLWLHV IRU HPSOR\HHV LQFOXGLQJ WKH DSSHDUDQFHDQGGHVLJQRIZRUNSODFHV
(PSOR\HUVVKDOOHVWDEOLVKRSHUDWHDQGPDLQWDLQKHDOWKIDFLOLWLHVDFFRUGLQJWRWKHH[WHQWDQGFRQGLWLRQV SUHVFULEHGLQVWDWXWRU\SURYLVLRQV
6HFWLRQ
(PSOR\HUVVKDOOHQDEOHHPSOR\HHVRQDOOVKLIWVWRREWDLQPHDOVWKH\GRQRWKDYHWKLVGXW\WRZDUGV HPSOR\HHVZKRPWKH\VHQGRXWWRZRUNDZD\HJRQEXVLQHVVWULSV
'HWDLOVRIHPSOR\HHVDQGIRUPHUHPSOR\HHV ZKRZLOOEHSURYLGHGZLWKPHDOVPD\EHDJUHHGLQWKH FROOHFWLYHEDUJDLQLQJDJUHHPHQWRUVHWRXWLQLQWHUQDOUHJXODWLRQVDVPD\EHWKHHPSOR\HU VRUJDQL]DWLRQRI WKHVH PHDOV DQG WKH PDQQHU LQ ZKLFK KH SURYLGHV DQG ILQDQFHV WKHP XQOHVV WKHVH LVVXHV DUH UHJXODWHG JHQHUDOO\ RU IRU D FHUWDLQ JURXS RI HPSOR\HUV E\ D VSHFLDO UHJXODWLRQ 7KH VDPH VKDOO DOVR DSSO\ WR HPSOR\HUVZKRDUHQRWHQJDJHGLQEXVLQHVVDFWLYLWLHV6WDWXWRU\WD[SURYLVLRQVUHPDLQWKHUHE\XQDIIHFWHG 1RWH
(PSOR\HHV 6NLOOVDQGWKHLU,PSURYHPHQW 6HFWLRQ
5HSHDOHG
6HFWLRQD
$Q HPSOR\HH VKDOO V\VWHPDWLFDOO\ H[WHQG WKH VNLOOV TXDOLILFDWLRQV QHHGHG IRU SHUIRUPDQFH RI WKH ZRUN DJUHHG XSRQ LQ KLV HPSOR\PHQW FRQWUDFW PDLQWDLQLQJ DQG UHIUHVKLQJ DQ HPSOR\HH V VNLOOV TXDOLILFDWLRQV VKDOO DOVR EH XQGHUVWRRG DV H[WHQGLQJ WKHP 7KH HPSOR\HU LV HQWLWOHG WR UHTXLUH KLV HPSOR\HHWRDWWHQGWUDLQLQJZKLFKH[WHQGVKLVVNLOOVTXDOLILFDWLRQV
6HFWLRQ
7KHHPSOR\HUVKDOOHQVXUHWKDWDQHPSOR\HHZKRHQWHUVLQWRDQHPSOR\PHQWUHODWLRQVKLSZLWKRXW VNLOOVTXDOLILFDWLRQV REWDLQVWKHPWKURXJKDQLQGXFWLRQFRXUVHRULQLWLDOWUDLQLQJ$IWHUVXFKHPSOR\HHKDV FRPSOHWHGKLVLQGXFWLRQFRXUVHRULQLWLDOWUDLQLQJKHVKDOOUHFHLYHDFHUWLILFDWHIURPKLVHPSOR\HU
7KHHPSOR\HUVKDOODOVRDUUDQJHIRUDQHPSOR\HHWRWDNHSDUWLQDQLQGXFWLRQFRXUVHRULQLWLDOWUDLQLQJ LIWKHHPSOR\HHWUDQVIHUVWRDQHZZRUNSODFHDQHZW\SHRIZRUNRUDQHZPHWKRGRIZRUNHVSHFLDOO\
ZKHQWKLVLVQHFHVVDU\GXHWRFKDQJHVLQZRUNRUJDQL]DWLRQRURWKHUUDWLRQDOL]DWLRQPHDVXUHV
6HFWLRQD 5HSHDOHG
6HFWLRQE
7KH HPSOR\HU PD\ SURYLGH DQ HPSOR\HH ZLWK UHOLHI IURP ZRUN DQG PDWHULDO ILQDQFLDO VHFXULW\ LQ DFFRUGDQFHZLWKVHFWLRQ LIWKHDVVXPHGLPSURYHPHQWLQKLVVNLOOVTXDOLILFDWLRQV FRUUHVSRQGVWR WKHHPSOR\HU VQHHGVREWDLQLQJRUH[WHQGLQJVNLOOVTXDOLILFDWLRQV VKDOODOVREHXQGHUVWRRGDVLPSURYLQJ WKHP
7KH HPSOR\HU VKDOO PRQLWRU WKH FRXUVH DQG UHVXOWV RI DQ HPSOR\HH V LPSURYHPHQW RI KLV VNLOOV TXDOLILFDWLRQV WKHHPSOR\HUPD\VWRSSURYLGLQJUHOLHIIURPZRUNDQGPDWHULDOVHFXULW\LI D WKHHPSOR\HHKDVEHFRPHXQILWWRGRWKHZRUNIRUZKLFKKLVVNLOOVDUHEHLQJLPSURYHGLQVXFKDFDVH WKHHPSOR\HUPD\SURYLGHWKHHPSOR\HHZLWKWLPHRIIZLWKRXWDFRPSHQVDWRU\ZDJH
F DQHPSOR\HHWKURXJKQRIDXOWRIWKHHPSOR\HUGRHVQRWZLWKRXWJRRGUHDVRQVDQGIRUDORQJSHULRG IXOILOVXEVWDQWLDOGXWLHVZKHQLPSURYLQJKLVVNLOOVTXDOLILFDWLRQV
6HFWLRQ
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
$QHPSOR\HUPD\DOVRFRQFOXGHDQDJUHHPHQWZLWKDQHPSOR\HHSXUVXDQWWRWKHSUHFHGLQJVXEVHFWLRQ ZKHQWKHHPSOR\HHLVH[WHQGLQJKLVVNLOOVLIWKHH[SHFWHGFRVWUHDFKHVDWOHDVW&=.KRZHYHULQ VXFKDFDVHWKHH[WHQVLRQRIVNLOOVFDQQRWEHRUGHUHG
7KHDJUHHPHQWPXVWEHFRQFOXGHGLQZULWLQJDQGLQFOXGHWKHIROORZLQJGHWDLOV D WKHW\SHRIVNLOOVTXDOLILFDWLRQV DQGWKHPDQQHURILPSURYLQJWKHP
E WKH SHULRG RI WLPH GXULQJ ZKLFK WKH HPSOR\HH FRPPLWV KLPVHOI WR UHPDLQLQJ LQ DQ HPSOR\PHQW UHODWLRQVKLSZLWKWKHHPSOR\HU
F WKHW\SHRIH[SHQVHVZKLFKWKHHPSOR\HHLVREOLJHGWRUHLPEXUVHWRWKHHPSOR\HULIKHGRHVQRWPHHW KLVREOLJDWLRQWRUHPDLQLQDQHPSOR\PHQWUHODWLRQVKLSZLWKWKHHPSOR\HU
G WKHPD[LPXPDPRXQWZKLFKWKHHPSOR\HHLVREOLJHGWRUHLPEXUVH RWKHUZLVHWKHDJUHHPHQWLVYRLG
7KHWLPHIRUZKLFKDQHPSOR\HHLVWRUHPDLQLQDQHPSOR\PHQWUHODWLRQVKLSVKDOOQRWLQFOXGHDSHULRG RI EDVLF RU VXEVWLWXWH PLOLWDU\ VHUYLFH RU FLYLOLDQ VHUYLFH SHUIRUPHG LQVWHDG RI WKLV RU D SHULRG RI SDUHQWDOOHDYHZKLFKLVRIWKHVDPHOHQJWKDVWKHSDUHQWDOOHDYHWRZKLFKWKHPRWKHURIWKHFKLOGLVHQWLWOHG VHFWLRQ ,IDEVHQFHVIURPZRUNZKLOHVHUYLQJDQXQFRQGLWLRQDOSULVRQWHUPRUZKLOHLQFXVWRG\DUH
EDVHGRQDILQDOHQIRUFHDEOH VHQWHQFHWKH\VKDOOVLPLODUO\QRWEHLQFOXGHGLQWKHSHULRGRIWLPHIRUZKLFK WKHHPSOR\HHLVWRUHPDLQLQDQHPSOR\PHQWUHODWLRQVKLSZLWKWKHHPSOR\HU
,IWKHHPSOR\HHRQO\SDUWO\IXOILOVKLVREOLJDWLRQWRUHPDLQLQDQHPSOR\PHQWUHODWLRQVKLSZLWKWKH HPSOR\HUKLVREOLJDWLRQWRUHLPEXUVHFRVWVVKDOOEHSURSRUWLRQDWHO\UHGXFHG
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
$QHPSOR\HH VREOLJDWLRQWRUHLPEXUVHH[SHQVHVVKDOOQRWDULVHLI
D ZKLOH LPSURYLQJ KLV VNLOOV TXDOLILFDWLRQV WKH HPSOR\HU FHDVHV WR SURYLGH KLP ZLWK PDWHULDO ILQDQFLDO VHFXULW\EHFDXVHIRUDORQJSHULRGRIWLPHDQGWKURXJKQRIDXOWRIKLVRZQWKHHPSOR\HH EHFDPHXQILWWRSHUIRUPWKHZRUNIRUZKLFKKHZDVLPSURYLQJKLVVNLOOV
E KLVHPSOR\PHQWUHODWLRQVKLSLVWHUPLQDWHGE\QRWLFHVHUYHGE\WKHHPSOR\HUXQOHVVLWFRQFHUQHGQRWLFH VHUYHG RQ JURXQGV IRU ZKLFK DQ HPSOR\PHQW UHODWLRQVKLS PD\ EH LPPHGLDWHO\ WHUPLQDWHG RU RQ JURXQGVRIDVHULRXVEUHDFKRIZRUNGLVFLSOLQHRUE\DJUHHPHQWRQWKHJURXQGVSXUVXDQWWRVHFWLRQ D WRF
F LQWKHRSLQLRQRIDPHGLFDOH[SHUWRUDFFRUGLQJWRDUXOLQJRIWKHKHDOWKDXWKRULW\RUVRFLDOVHFXULW\ DXWKRULW\ WKH HPSOR\HH LV XQILW WR SHUIRUP WKH ZRUN IRU ZKLFK KH ZDV LPSURYLQJ KLV VNLOOV RU KH VXIIHUV IURP D ORQJWHUP LQDELOLW\ WR IXUWKHU SHUIRUP KLV SUHYLRXV ZRUN IRU WKH UHDVRQV VWDWHG LQ VHFWLRQ G
G IRUDWOHDVWVL[RIWKHSUHFHGLQJPRQWKVWKHHPSOR\HUGRHVQRWPDNHXVHRIWKHVNLOOVZKLFKWKH HPSOR\HHKDVLPSURYHG
7KH FROOHFWLYH EDUJDLQLQJ DJUHHPHQW RU LQWHUQDO UHJXODWLRQV PD\ GHILQH RWKHU FDVHV ZKHQ WKH HPSOR\HHLVQRWREOLJHGWRUHLPEXUVHWKHFRVWWKHFROOHFWLYHEDUJDLQLQJDJUHHPHQWRULQWHUQDOUHJXODWLRQV DSSOLFDEOHZKHQWKHDJUHHPHQWSXUVXDQWWRVXEVHFWLRQ ZDVFRQFOXGHGVKDOOWKHUHE\EHGHFLVLYH7KLV VKDOODOVRDSSO\WRHPSOR\HUVZKRDUHQRWHQJDJHGLQEXVLQHVVDFWLYLWLHV
6HFWLRQ
(PSOR\HUVVKDOOHQVXUHWKDWZKHQWKH\HPSOR\JUDGXDWHVRIVHFRQGDU\DQGXQLYHUVLW\OHYHOVFKRROV WKHVHJUDGXDWHVZLOODFTXLUHDGHTXDWHYRFDWLRQDOSUDFWLFDOH[SHULHQFHDQGNQRZOHGJHQHFHVVDU\IRUJRRG DQGUHOLDEOHSHUIRUPDQFHRIWKHLUZRUNDQGIRUIXUWKHUYRFDWLRQDOGHYHORSPHQW
6HFWLRQ
/RFNHUVDQG9HKLFOH6KHGV
7KHHPSOR\HUVKDOOSURYLGHORFNHUVVSDFH IRURXWHUJDUPHQWVDQGSHUVRQDOHIIHFWVZKLFKHPSOR\HHV XVXDOO\ EULQJ WR ZRUN DQG YHKLFOH VKHGV IRU HPSOR\HHV ZKR WUDYHO WR DQG IURP ZRUN XVLQJ WKHLU RZQ WUDQVSRUWDWLRQ IRU WKHVH SXUSRVHV D FDU VKDOO QRW EH FRQVLGHUHG DV D XVXDO PHDQV RI WUDQVSRUWDWLRQ IRU WUDYHOOLQJWRDQGIURPZRUN7KHHPSOR\HUVKDOODOVRKDYHWKLVREOLJDWLRQWRZDUGVDOORWKHUSHUVRQVLIWKH\ DUHUHQGHULQJDVHUYLFHIRUWKHHPSOR\HUDWKLVZRUNSODFH
'LYLVLRQ
,QFDSDFLW\DQG5HWLUHPHQW%HQHILWVDQG(PSOR\PHQWDIWHU5HWXUQLQJWR:RUN 6HFWLRQ
%HQHILWVIRUHPSOR\HHVZKRDUHXQILWRUXQDEOH WRZRUNDVWKHUHVXOWRILOOQHVVLQMXU\SUHJQDQF\RU PRWKHUKRRGDUHUHJXODWHGE\WKHVWDWXWRU\SURYLVLRQVRQVLFNQHVVLQVXUDQFHZKHUHDVWKHLUEHQHILWVZKHQ WKH\ DUH GLVDEOHG DQG RI UHWLUHPHQW DJH DUH UHJXODWHG E\ WKH VWDWXWRU\ SURYLVLRQV RQ VRFLDO VHFXULW\ SUHYHQWLYHFDUHDQGPHGLFDOWUHDWPHQWIRUHPSOR\HHVDUHUHJXODWHGE\WKHVWDWXWRU\SURYLVLRQVRQKHDOWK FDUH
6HFWLRQ
,IDQHPSOR\HHUHWXUQVWRZRUNDIWHUKROGLQJSXEOLFRIILFHRUDWUDGHXQLRQSRVWRUDIWHUDWUDLQLQJ FRXUVHRUFRPSOHWLRQRIVHUYLFHLQWKHDUPHGIRUFHVH[FHSWIRUEDVLFPLOLWDU\VHUYLFHRUFLYLOLDQVHUYLFH RULQWKHFDVHRIDIHPDOHHPSOR\HHDIWHUWKHHQGRIKHUPDWHUQLW\OHDYH>VHFWLRQ @RULIDPDOH HPSOR\HHUHWXUQVWRZRUNDIWHUWKHHQGRISDUHQWDOOHDYHZKLFKZDVRIWKHVDPHOHQJWKDVWKHSHULRGWR ZKLFK RWKHUZLVH D ZRPDQ WKH PRWKHU LV HQWLWOHG RU LI DQ HPSOR\HH UHWXUQV WR ZRUN DIWHU D SHULRG RI WHPSRUDU\ LQDELOLW\ WR ZRUN RU TXDUDQWLQH WKH HPSOR\HU VKDOO HPSOR\ KLP LQ KLV RULJLQDO MRE DQG ZRUNSODFH,IWKLVLVQRWSRVVLEOHEHFDXVHWKHW\SHRIZRUNKDVEHHQGLVFRQWLQXHGRUWKHZRUNSODFHKDV EHHQ FORVHG GRZQ WKH HPSOR\HU PXVW HPSOR\ KLP LQ DQRWKHU W\SH RI ZRUN FRUUHVSRQGLQJ WR KLV HPSOR\PHQWFRQWUDFW
6HFWLRQ
(PSOR\HUV VKDOO HPSOR\ GLVDEOHG HPSOR\HHV LQ VXLWDEOH MREV SRVLWLRQV DQG HQDEOH WKHP WKURXJK SUDFWLFDOWUDLQLQJRUVWXGLHVWRREWDLQWKHQHFHVVDU\VNLOOVDQGLPSURYHWKHP,QDGGLWLRQHPSOR\HUVVKDOO FUHDWHFRQGLWLRQVZKLFKDOORZVXFKHPSOR\HHVWRZRUNDVH[WHQVLYHO\DQGSHUPDQHQWO\DVSRVVLEOHDQG LPSURYH ZRUNSODFH IDFLOLWLHV VR WKDW WKHVH HPSOR\HHV FDQ DFKLHYH WKH VDPH ZRUN UHVXOWV DV RWKHU HPSOR\HHVDQGGRHYHU\WKLQJSRVVLEOHWRIDFLOLWDWHWKHLUZRUN
3URWHFWLYH ZRUNVKRSV ZRUNVWDWLRQV VKDOO EH UHVHUYHG RU HVWDEOLVKHG DW WKH ZRUNSODFHV RI FHUWDLQ HPSOR\HUVIRUGLVDEOHGHPSOR\HHVZKRFDQQRWEHHPSOR\HGXQGHUWKHXVXDOFRQGLWLRQVDQGZKHUHWKHVH HPSOR\HHVZLOOKDYHDQRSSRUWXQLW\RIDFTXLULQJWKHQHFHVVDU\VNLOOV
7KH GXW\ RI HPSOR\HUV WR HPSOR\ GLVDEOHG KDQGLFDSSHG HPSOR\HHV SXUVXDQW WR WKH SUHFHGLQJ VXEVHFWLRQVVKDOOEHJRYHUQHGLQPRUHGHWDLOE\VSHFLDOSURYLVLRQV
6HFWLRQD 5HSHDOHG
&+$37(59,,
:25.,1*&21',7,216)25:20(1$1'$'2/(6&(176
'LYLVLRQ
:RUNLQJ&RQGLWLRQVIRU:RPHQ 6HFWLRQ
(PSOR\HUVVKDOOHVWDEOLVKPDLQWDLQDQGLPSURYHK\JLHQLFDQGRWKHUIDFLOLWLHVIRUZRPHQ 6HFWLRQ
3URKLELWLRQRQ&HUWDLQ7\SHVRI:RUN
:RPHQPD\QRWEHHPSOR\HGRQZRUNSHUIRUPHGXQGHUJURXQGWRH[WUDFWPLQHUDOVRUERUHWXQQHOVDQG JDOOHULHVH[FHSWIRUZRPHQZKR
D ZRUNLQSRVLWLRQVRIUHVSRQVLELOLW\RUPDQDJHPHQWSRVLWLRQVZKLFKGRQRWLQYROYHPDQXDOZRUN
E ZRUNLQKHDOWKFDUHDQGVRFLDOVHUYLFHV
F DUHJDLQLQJRSHUDWLRQDOH[SHULHQFHDVSDUWRIWKHLUVWXGLHV
G SHUIRUPQRQPDQXDOZRUNZKLFKPXVWEHRFFDVLRQDOO\GRQHXQGHUJURXQGHVSHFLDOO\LQRFFXSDWLRQV UHODWHGWRVXSHUYLVLRQLQVSHFWLRQRUVWXGLHV
:RPHQPD\QRWEHHPSOR\HGLQZRUNZKLFKLVSK\VLFDOO\LQDGHTXDWHRUZKLFKLVKDUPIXOWRWKHLU ERGLHVHVSHFLDOO\ZRUNZKLFKHQGDQJHUVWKHLUPDWHUQDOUROH7KH0LQLVWU\RI+HDOWKVKDOOGHWHUPLQHLQD GHFUHHWKHW\SHVRIZRUNDQGZRUNSODFHVIURPZKLFKZRPHQZKRDUHEUHDVWIHHGLQJSUHJQDQWZRPHQDQG PRWKHUVXQWLOWKHHQGRIWKHQLQWKPRQWKDIWHUJLYLQJELUWK DUHSURKLELWHG
3UHJQDQWZRPHQPD\QRWEHHPSOR\HGLQZRUNZKLFKDFFRUGLQJWRPHGLFDORSLQLRQHQGDQJHUVWKHLU SUHJQDQF\IRUKHDOWKUHODWHGQDWXUDOUHDVRQV7KHVDPHVKDOODSSO\WREUHDVWIHHGLQJZRPHQDQGPRWKHUV XQWLOWKHHQGRIWKHQLQWKPRQWKDIWHUWKH\KDYHJLYHQELUWK
6HFWLRQVDQG 5HSHDOHG
'LYLVLRQ
:RUNLQJ&RQGLWLRQVIRU3UHJQDQW:RPHQDQG0RWKHUV 6HFWLRQ
7UDQVIHUWR2WKHU:RUN-RE
,I D SUHJQDQW ZRPDQ GRHV ZRUN ZKLFK SUHJQDQW ZRPHQ DUH SURKLELWHG IURP GRLQJ RU ZKLFK DFFRUGLQJ WR PHGLFDO RSLQLRQ HQGDQJHUV KHU SUHJQDQF\ WKH HPSOR\HU VKDOO WUDQVIHU KHU WHPSRUDULO\ WR RWKHUPRUHVXLWDEOHZRUNMRE ZKLFKZLOODOORZKHUWRPDLQWDLQWKHOHYHORIKHUSUHYLRXVHDUQLQJV,ID SUHJQDQWZRPDQRQQLJKWZRUNUHTXHVWVWUDQVIHUWRGD\ZRUNWKHHPSOR\HUVKDOOFRPSO\ZLWKKHUUHTXHVW
7KHSURYLVLRQRIWKHSUHFHGLQJVXEVHFWLRQVKDOOVLPLODUO\DSSO\WRPRWKHUVXQWLOWKHHQGRIWKHQLQWK PRQWKDIWHUWKH\JLYHELUWKDQGWREUHDVWIHHGLQJZRPHQ ,IWKURXJKQRIDXOWRIKHURZQDZRPDQHDUQVOHVVLQWKHZRUNMRE WRZKLFKVKHLVWUDQVIHUUHGWKDQ
VKH HDUQHG SUHYLRXVO\ VKH VKDOO EH SURYLGHG ZLWK D GLIIHUHQWLDOEHQHILWLQFRPHVXSSRUW LQDFFRUGDQFH ZLWKWKHVWDWXWRU\SURYLVLRQVRQVLFNQHVVLQVXUDQFH
6HFWLRQ
%XVLQHVV7ULSV:RUNLQJ$ZD\ DQG7UDQVIHUVWR2WKHU/RFDWLRQV
3UHJQDQWZRPHQDQGZRPHQORRNLQJDIWHUFKLOGUHQXSWRWKHDJHRIHLJKW\HDUVPD\RQO\EHVHQWWR ZRUN RXWVLGH WKH ORFDOLW\ RI WKHLU ZRUNSODFH RU UHVLGHQFH ZLWK WKHLU FRQVHQW WKHLU HPSOR\HUV PD\ RQO\ WUDQVIHUWKHPWRDQRWKHUORFDWLRQDWWKHLURZQUHTXHVW
7KHSURYLVLRQRIWKHSUHFHGLQJVXEVHFWLRQVKDOODOVRDSSO\WRDVLQJOHZRPDQORRNLQJDIWHUDFKLOG XQWLOWKHFKLOGUHDFKHV\HDUVRIDJH
6HFWLRQ
6HYHUDQFHRIDQ(PSOR\PHQW5HODWLRQVKLS
$Q HPSOR\HU PD\ RQO\ H[FHSWLRQDOO\ VHYHU DQ HPSOR\PHQW UHODWLRQVKLS E\ JLYLQJ QRWLFH WR D SUHJQDQWIHPDOHHPSOR\HHRUDVHOIVXSSRUWLQJIHPDOHHPSOR\HHSHUPDQHQWO\ORRNLQJDIWHUDFKLOGXQGHU WKUHH\HDUVRIDJHQDPHO\LQWKHFDVHVSXUVXDQWWRVHFWLRQV D DQGE DQG
6HFWLRQ
$GMXVWPHQWRI:RUNLQJ7LPH
:KHQDVVLJQLQJHPSOR\HHVWRVKLIWVWKHHPSOR\HUVKDOOFRQVLGHUWKHQHHGVRIZRPHQORRNLQJDIWHU FKLOGUHQ
,IDZRPDQORRNLQJDIWHUDFKLOGXQGHU\HDUVRIDJHRUDSUHJQDQWZRPDQUHTXHVWVWKDWKHUZRUNLQJ WLPHEHUHGXFHGRUWKDWVRPHRWKHUVXLWDEOHDGMXVWPHQWEHPDGHWRWKHSUHVFULEHGZHHNO\ZRUNLQJWLPH WKHHPSOR\HULVREOLJHGWRJUDQWKHUUHTXHVWSURYLGHGWKDWKHLVQRWSUHYHQWHGIURPGRLQJVRIRUVHULRXV RSHUDWLRQDO UHDVRQV VHFWLRQ DW WKH VDPH WLPH WKH HPSOR\HU VKDOOSURFHHGLQFRRSHUDWLRQZLWKWKH FRPSHWHQWWUDGHXQLRQRUJDQL]DWLRQRUJDQERG\
$QHPSOR\HUPD\QRWHPSOR\DSUHJQDQWZRPDQRUDZRPDQORRNLQJDIWHUDFKLOGXQGHURQH\HDURI DJHRQRYHUWLPHZRUN
0DWHUQLW\DQG3DUHQWDO/HDYH 6HFWLRQ
0DWHUQLW\/HDYH
,QFRQQHFWLRQZLWKWKHELUWKRIDFKLOGDQGWKHFDUHRIDQHZO\ERUQFKLOGDZRPDQHPSOR\HHVKDOOEH HQWLWOHGWRZHHNVRIPDWHUQLW\OHDYHLIWKHHPSOR\HHJLYHVELUWKWRWZRRUPRUHFKLOGUHQDWWKHVDPH WLPHRULIWKHHPSOR\HHLVDVLQJOHZRPDQVKHVKDOOEHHQWLWOHGWRZHHNVRIPDWHUQLW\OHDYH
$IHPDOHHPSOR\HHVKDOOVWDUWKHUPDWHUQLW\OHDYHDVDUXOHDWWKHEHJLQQLQJRIWKHVL[WKZHHNEHIRUH WKHH[SHFWHGGD\RIWKHELUWKRIKHUFKLOGEXWQRHDUOLHUWKDQWKHEHJLQQLQJRIWKHHLJKWKZHHNEHIRUHWKH H[SHFWHGELUWK
,IDIHPDOHHPSOR\HHKDVKDGOHVVWKDQVL[ZHHNVRIPDWHUQLW\OHDYHEHIRUHWKHGD\KHUFKLOGLVERUQ EHFDXVH WKH FKLOG ZDV ERUQ HDUOLHU WKDQ WKH GDWH GHWHUPLQHG E\ KHU GRFWRU VKH VKDOO EH HQWLWOHG WR
PDWHUQLW\OHDYHIURPWKHGD\RIWKHEHJLQQLQJRIKHUPDWHUQLW\OHDYHXQWLOH[SLU\RIWKHSHULRGSXUVXDQWWR VXEVHFWLRQ ,IDIHPDOHHPSOR\HHKDVKDGOHVVWKDQVL[ZHHNVRIPDWHUQLW\OHDYHEHIRUHWKHELUWKRIKHU FKLOGIRUVRPHRWKHUUHDVRQVKHVKDOOEHJUDQWHGZHHNVRIPDWHUQLW\OHDYHDVRIWKHGD\RIKHUFKLOG V ELUWKRUZHHNVLIVKHJLYHVELUWKWRWZRRUPRUHFKLOGUHQRULIVKHLVDVLQJOHHPSOR\HHVLQJOHPRWKHU
,IWKHFKLOGLVVWLOOERUQWKHIHPDOHHPSOR\HHVKDOOEHHQWLWOHGWRPDWHUQLW\OHDYHRIZHHNV
0DWHUQLW\OHDYHUHODWHGWRWKHELUWKRIDFKLOGPD\QRWEHOHVVWKDQZHHNVDQGFDQQRWWHUPLQDWHRU EH VXVSHQGHG >VHFWLRQ @ LQ DQ\ FLUFXPVWDQFHV EHIRUH VL[ ZHHNV KDYH SDVVHG VLQFH WKH ELUWK RI D FKLOG
6HFWLRQ
3DUHQWDO/HDYH
,QRUGHUWRH[WHQGWKHFDUHEHLQJJLYHQWRDFKLOGWKHHPSOR\HUVKDOOJUDQWDIHPDOHRUPDOHHPSOR\HH SDUHQWDOOHDYHLIVRUHTXHVWHG3DUHQWDOOHDYHVKDOOEHJUDQWHGWRWKHPRWKHURIDFKLOGDWWKHHQGRIKHU PDWHUQLW\OHDYHDQGWRWKHIDWKHURIDFKLOGDVRIWKHGD\ZKHQWKHFKLOGLVERUQWRWKHH[WHQWDSSOLHGIRU EXWQRORQJHUWKDQXQWLOWKHFKLOGUHDFKHVWKHDJHRIWKUHH\HDUV
6HFWLRQ
0DWHUQLW\DQG3DUHQWDO/HDYHIRU)RVWHU3DUHQWV
(QWLWOHPHQWWRPDWHUQLW\DQGSDUHQWDOOHDYHVKDOODOVRSHUWDLQWRDIHPDOHRUPDOHHPSOR\HHZKRLV IRVWHULQJDFKLOGE\FDULQJIRULWLQVWHDGRILWVSDUHQWVRQWKHEDVLVRIDUXOLQJE\WKHFRPSHWHQWDXWKRULW\ RUEHFDXVHWKHFKLOG VPRWKHUGLHG³DUXOLQJRIWKHFRPSHWHQWDXWKRULW\´VKDOOPHDQDGHFLVLRQWRSODFHD FKLOGLQWRIRVWHUFDUHZKLFKIRUWKHSXUSRVHVRIVWDWHVRFLDOVXSSRUW1RWHD UHSODFHVSDUHQWDOFDUH
0DWHUQLW\OHDYHSXUVXDQWWRVXEVHFWLRQ VKDOOEHJUDQWHGWRDIHPDOHHPSOR\HHIRUZHHNVIURP WKHGD\ZKHQWKHFKLOGLVWDNHQLQWRIRVWHUFDUHDQGLIDIHPDOHHPSOR\HHWDNHVWZRRUPRUHFKLOGUHQLQWR IRVWHUFDUHRULIVKHLVVLQJOHVKHVKDOOEHHQWLWOHGWRPDWHUQLW\OHDYHRIZHHNVEXWQRWDIWHUWKHGD\ ZKHQWKHFKLOGUHDFKHVWKHDJHRIHLJKWPRQWKV
3DUHQWDOOHDYHSXUVXDQWWRVXEVHFWLRQ VKDOOEHJUDQWHGDVRIWKHGD\ZKHQWKHFKLOGLVWDNHQLQWR IRVWHUFDUHXQWLOWKHGD\ZKHQWKHFKLOGUHDFKHVWKHDJHRIWKUHH\HDUVDIHPDOHHPSOR\HHZKRKDVEHHQRQ PDWHUQLW\OHDYHSXUVXDQWWRVXEVHFWLRQ VKDOOEHJUDQWHGSDUHQWDOOHDYHDIWHUWKHHQGRIKHUPDWHUQLW\ OHDYH
6HFWLRQ
-RLQW3URYLVLRQVRQ0DWHUQLW\DQG3DUHQWDO/HDYH
$IHPDOHDQGDPDOHHPSOR\HHVKDOOEHHQWLWOHGWRWDNHPDWHUQLW\DQGSDUHQWDOOHDYHFRQFXUUHQWO\
,I D FKLOG LV WDNHQ WR D PHGLFDO IDFLOLW\ IRU VXFNOLQJV RU WR DQRWKHU KHDOWK FDUH HVWDEOLVKPHQW IRU PHGLFDOWUHDWPHQWDQGWKHPDOHRUIHPDOHHPSOR\HHVWDUWZRUNLQJWKHHPSOR\HH VPDWHUQLW\RUSDUHQWDO OHDYHVKDOOEHVXVSHQGHGWKHXQWDNHQSDUWRIVXFKOHDYHVKDOOEHJUDQWHGZKHQWKHFKLOGLVUHOHDVHGIURP WKHKHDOWKFDUHHVWDEOLVKPHQWDQGFDUHGIRUDJDLQE\LWVIRVWHUSDUHQWVEXWQRWDIWHUWKHWLPHZKHQWKHFKLOG UHDFKHVWKHDJHRIWKUHH\HDUV
,IDIHPDOHRUDPDOHHPSOR\HHFHDVHVWRWDNHFDUHRIWKHFKLOGDQGDVDUHVXOWLWLVSXWLQWRIRVWHUFDUH RULQVWLWXWLRQDOFDUHLQORFRSDUHQWLVRULIWKHFKLOGRIDIHPDOHRUPDOHHPSOR\HHLVWHPSRUDULO\LQWKHFDUH RIDQHVWDEOLVKPHQWIDFLOLW\ IRUVXFNOLQJVRUDQRWKHUKHDOWKFDUHHVWDEOLVKPHQWIRURWKHUWKDQUHDVRQVRI
KHDOWKWKHHPSOR\HHVKDOOQRWEHHQWLWOHGWRPDWHUQLW\RUSDUHQWDOOHDYHIRUWKHSHULRGZKHQQRWWDNLQJFDUH RIWKHFKLOG
,I WKH FKLOG GLHV GXULQJ WKH IHPDOH HPSOR\HH V PDWHUQLW\ RU SDUHQWDO OHDYH RU WKH PDOH HPSOR\HH V SDUHQWDOOHDYHWKHPDWHUQLW\RUSDUHQWDOOHDYHVKDOOFRQWLQXHWZRIXUWKHUZHHNVDIWHUWKHFKLOG VGHDWKEXW QRWEH\RQGWKHGD\ZKHQWKHFKLOGZRXOGKDYHUHDFKHGWKHDJHRIRQH\HDU
6HFWLRQ
%UHDNVIRU%UHDVWIHHGLQJ
,QDGGLWLRQWRWKHXVXDOZRUNEUHDNVWKHHPSOR\HUVKDOODOORZDPRWKHUZKRLVEUHDVWIHHGLQJKHUFKLOG DVSHFLDOEUHDNIRUWKLVSXUSRVH
$PRWKHUZKRZRUNVWKHSUHVFULEHGZHHNO\ZRUNLQJWLPHLVHQWLWOHGWRWZRKDOIKRXUEUHDNVSHUVKLIW IRUHDFKFKLOGXQWLOLWUHDFKHVWKHDJHRIRQH\HDUDQGWRRQHKDOIKRXUEUHDNIRUWKHQH[WWKUHHPRQWKV,I VKHZRUNVVKRUWHUKRXUVEXWDWOHDVWKDOIRIWKHSUHVFULEHGZHHNO\ZRUNLQJKRXUV VKHLVHQWLWOHGWRDW OHDVWRQHKDOIKRXUEUHDNIRUHDFKFKLOGXQWLOLWUHDFKHVWKHDJHRIRQH\HDU
%UHDNV IRU EUHDVWIHHGLQJ DUH FRXQWHG DV SDUW RI KHU ZRUNLQJ KRXUV DQG VKH LV SDLG IRU WKHP LQ WKH DPRXQWRIKHUDYHUDJHHDUQLQJV
6HFWLRQ 5HSHDOHG
'LYLVLRQ
:RUNLQJ&RQGLWLRQVIRU$GROHVFHQWV 6HFWLRQ
(PSOR\HUVVKDOOFUHDWHIDYRXUDEOHFRQGLWLRQVIRUWKHJHQHUDOGHYHORSPHQWRIWKHDGROHVFHQW VSK\VLFDO DQGLQWHOOHFWXDODELOLWLHVHYHQE\DVSHFLDODGMXVWPHQWRIWKHLUZRUNLQJFRQGLWLRQV7KHHPSOR\HUVKDOOFR RSHUDWHFORVHO\ZLWKWKHDGROHVFHQW VIDPLO\LQUHVROYLQJLPSRUWDQWLVVXHVUHODWLQJWRWKHDGROHVFHQW
6HFWLRQ
:KHQFRQFOXGLQJDQHPSOR\PHQWFRQWUDFWZLWKDQDGROHVFHQWWKHHPSOR\HUVKDOODVNWKHDGROHVFHQW V OHJLWLPDWHUHSUHVHQWDWLYHIRUKLVRSLQLRQ
,I WKH HPSOR\HU JLYHV QRWLFH RI WHUPLQDWLRQ RI HPSOR\PHQW WR DQ DGROHVFHQW HPSOR\HH RU KH WHUPLQDWHV KLV HPSOR\PHQW UHODWLRQVKLS LQVWDQWO\ WKLV IDFW PXVW EH EURXJKW WR WKH DWWHQWLRQ RI KLV OHJLWLPDWHUHSUHVHQWDWLYH,IDQDGROHVFHQWHPSOR\HHVHYHUVKLVHPSOR\PHQWUHODWLRQVKLSRULILWVKRXOGEH VHYHUHGE\DJUHHPHQWWKHHPSOR\HUVKDOOUHTXHVWWKHRSLQLRQRIWKHHPSOR\HH VOHJLWLPDWHUHSUHVHQWDWLYH
6HFWLRQ
(PSOR\HUV PD\ RQO\ HPSOR\ DGROHVFHQWV RQ ZRUN ZKLFK LV FRPSHWHQW WR WKHLU SK\VLFDO DQG LQWHOOHFWXDO GHYHORSPHQW DQG GHYRWH VSHFLDO DWWHQWLRQ WR WKHLU QHHGV DW ZRUN WKH VDPH VKDOO DSSO\ WR VFKRROV RU FLYLF DVVRFLDWLRQV XQGHU DQRWKHU ODZ 1RWH LI DV SDUW RI WKH XSEULQJLQJ RI \RXWK WKH\
RUJDQL]HZRUNIRUDGROHVFHQWV
6HFWLRQ
3URKLELWLRQRQ2YHUWLPHDQG1LJKW:RUN
$QHPSOR\HUPD\QRWUHTXLUHDGROHVFHQWHPSOR\HHVWRZRUNRYHUWLPHRUDWQLJKW$VDQH[FHSWLRQ DGROHVFHQWV RYHU \HDUV RI DJH PD\ ZRUN DW QLJKW IRU XS WR D PD[LPXP RI RQH KRXU ZKHUH WKLV LV QHFHVVDU\IRUWKHLUYRFDWLRQDOWUDLQLQJ1LJKWZRUNE\DQDGROHVFHQWPXVWLPPHGLDWHO\IROORZKLVGD\WLPH ZRUNDFFRUGLQJWRWKHVFKHGXOHRIZRUNLQJVKLIWV
(PSOR\HUVPD\QRWRIIHUUHPXQHUDWLRQIRUZRUNZKLFKDOWKRXJKLWPLJKWLQFUHDVHRXWSXWZRXOGOHDG WRDGROHVFHQWHPSOR\HHVIDFLQJDQLQFUHDVHGGDQJHURILQMXU\DQGSRVHDWKUHDWWRWKHVDIHW\
,IWKHHPSOR\HUFDQQRWDVVLJQDQDGROHVFHQWWRZRUNIRUZKLFKKHKDVKDGDYRFDWLRQDOHGXFDWLRQGXH WR WKH IDFW WKDW WKH SHUIRUPDQFH RI VXFK ZRUN E\ DQ DGROHVFHQW LV SURKLELWHG RU EHFDXVH DFFRUGLQJ WR PHGLFDORSLQLRQLWHQGDQJHUVKLVKHDOWKWKHQWKHHPSOR\HUVKDOODVVLJQKLPWRRWKHUDSSURSULDWHZRUNLI SRVVLEOHFRUUHVSRQGLQJWRKLVVNLOOVXQWLOVXFKWLPHDVWKHDGROHVFHQWFDQGRZRUNFRUUHVSRQGLQJWRKLV VNLOOVTXDOLILFDWLRQV
6HFWLRQ
:RUN3URKLELWHGIRU$GROHVFHQWV
$GROHVFHQWV PD\ QRW EH HPSOR\HG WR ZRUN XQGHUJURXQG RQ WKH H[WUDFWLRQ RI PLQHUDOV RU GULOOLQJ WXQQHOVDQGJDOOHULHV
$GROHVFHQWVPD\QRWEHHPSOR\HGRQZRUNZKLFKLVLQDSSURSULDWHWRWKHPRUGDQJHURXVRUGDPDJLQJ WRWKHLUKHDOWKWDNLQJLQWRDFFRXQWWKHDQDWRPLFDOSK\VLRORJLFDODQGSV\FKRORJLFDODWWULEXWHVRISHUVRQVRI WKLVDJH7KH0LQLVWU\RI+HDOWKDFWLQJLQDJUHHPHQWZLWKWKH0LQLVWU\RI(FRQRP\DQGWKH0LQLVWU\RI (GXFDWLRQ
(PSOR\HUVPD\QRWHPSOR\DGROHVFHQWVRQZRUNZKLFKH[SRVHVWKHPWRLQFUHDVHGULVNRILQMXU\RU ZKRVHSHUIRUPDQFHE\DGROHVFHQWVPLJKWVHULRXVO\HQGDQJHUWKHVDIHW\RUKHDOWKRIIHOORZHPSOR\HHVRU RWKHUSHUVRQV
7KHSURKLELWLRQRQFHUWDLQW\SHVRIZRUNPD\DOVREHH[WHQGHGE\DGHFUHHSXUVXDQWWRVXEVHFWLRQ WRHPSOR\HHVZKRVHDJHLVFORVHWRWKHDJHRIDGROHVFHQFH
6HFWLRQ
0HGLFDO([DPLQDWLRQV
7KHHPSOR\HUVKDOOHQVXUHWKDWDGROHVFHQWHPSOR\HHVDUHH[DPLQHGE\DGRFWRU
D SULRUWRHQWHULQJLQWRWKHHPSOR\PHQWUHODWLRQVKLSDQGEHIRUHWKH\DUHWUDQVIHUUHGWRDQRWKHUNLQGRI ZRUNIRUDSHULRGRIORQJHUWKDQRQHPRQWK
E UHJXODUO\DFFRUGLQJWRQHHGEXWDWOHDVWRQFHD\HDUXQOHVVWKH0LQLVWU\RI+HDOWKSURYLGHVIRUPRUH IUHTXHQWPHGLFDOH[DPLQDWLRQVLQFHUWDLQFDWHJRULHVRIZRUN
$GROHVFHQWVDUHREOLJHGWRXQGHUJRWKHSUHVFULEHGPHGLFDOH[DPLQDWLRQFKHFNXS
:KHQ DVVLJQLQJ ZRUN WR DQ DGROHVFHQW WKH HPSOR\HU VKDOO DOVR WDNH D PHGLFDO RSLQLRQ LQWR
FRQVLGHUDWLRQ
6HFWLRQ 5HSHDOHG
&+$37(59,,,
&203(16$7,212)'$0$*( 'LYLVLRQ
3UHYHQWLRQRI'DPDJH 6HFWLRQ
7KHHPSOR\HULVREOLJHGWRSURYLGHHPSOR\HHVZLWKZRUNLQJFRQGLWLRQVZKLFKHQDEOHWKHPWRSHUIRUP WKHLUZRUNLQJWDVNVSURSHUO\ZLWKRXWHQGDQJHULQJKHDOWKDQGSURSHUW\LIWKHHPSOR\HUDVFHUWDLQVGHIHFWV LQWKHZRUNLQJFRQGLWLRQVKHVKDOOWDNHUHPHGLDOPHDVXUHV
7KHHPSOR\HUVKDOOV\VWHPDWLFDOO\FKHFNZKHWKHUKLVHPSOR\HHVDUHFRPSOHWLQJWKHLUZRUNLQJWDVNVLQ DPDQQHUZKLFKSUHYHQWVGDPDJH
,Q RUGHU WR SURWHFW KLV SURSHUW\ WKH HPSOR\HU VKDOO FDUU\ RXW FKHFNV DV QHFHVVDU\ RQ WKLQJV WKDW HPSOR\HHV EULQJ WR DQG WDNH DZD\ IURP KLV SUHPLVHV RU DUUDQJH IRU WKH VHDUFKLQJ RI HPSOR\HHV 7KH HPSOR\HU VKDOO GHWDLO WKH FRQGLWLRQV LQ WKH ZRUN FRGH 'XULQJ D FKHFN RU VHDUFK SXUVXDQW WR WKH ILUVW VHQWHQFHWKHVWDWXWRU\SURYLVLRQVRQWKHSURWHFWLRQRISHUVRQDOIUHHGRP1RWH PXVWEHREVHUYHGDQG HPSOR\HHVPD\QRWEHKXPLOLDWHG3HUVRQDOVHDUFKHVPD\RQO\EHFDUULHGRXWE\SHUVRQVRIWKHVDPHVH[
6HFWLRQ
(PSOR\HHV VKDOO FRQGXFW WKHPVHOYHV LQ VXFK D PDQQHU DV WR DYRLG FDXVLQJ GDPDJH WR KHDOWK DQG SURSHUW\DQGXQMXVWHQULFKPHQWWRWKHGHWULPHQWRIVRFLHW\RUDQLQGLYLGXDO,IWKHUHLVDULVNRIGDPDJH HPSOR\HHVVKDOOLQIRUPWKHPDQDJHPHQW
,IWKHUHLVDQLPPLQHQWGDPDJHWRWKHHPSOR\HU VSURSHUW\KLVHPSOR\HHVVKDOOWDNHLPPHGLDWHVWHSV WRSUHYHQWVXFKGDPDJHWKH\DUHQRWUHTXLUHGWRGRVRLIWKHJUDYLW\RIWKHFLUFXPVWDQFHVSUHYHQWVWKHP IURPVRGRLQJRULIWKLVZRXOGH[SRVHWKHPRWKHUHPSOR\HHVRUSHUVRQVFORVHWRWKHPWRVHULRXVGDQJHU
,IDQHPSOR\HHDVFHUWDLQVWKDWKLVZRUNLQJFRQGLWLRQVDUHQRWDVWKH\VKRXOGEHKHVKDOOLQIRUPKLV VXSHULRUDFFRUGLQJO\
'LYLVLRQ
/LDELOLW\RIDQ(PSOR\HHIRU'DPDJH 6HFWLRQ
*HQHUDO/LDELOLW\
$Q HPSOR\HH LV OLDEOH WR WKH HPSOR\HU IRU GDPDJH ZKLFK KH FDXVHV WKURXJK KLV RZQ IDXOW E\ QRW IXOILOOLQJKLVREOLJDWLRQVZKHQSHUIRUPLQJKLVZRUNLQJWDVNVRULQGLUHFWFRQQHFWLRQWKHUHZLWK
,IGDPDJHLVDOVRFDXVHGE\DEUHDFKRIWKHHPSOR\HU VREOLJDWLRQVWKHHPSOR\HH VOLDELOLW\VKDOOEH UHGXFHGSURSRUWLRQDWHO\
7KHHPSOR\HUVKDOOKDYHWRSURYHWKDWKLVHPSOR\HHLVDWIDXOWH[FHSWLQWKHFDVHVVSHFLILHGLQVHFWLRQV DQG
6HFWLRQVDQG 5HSHDOHG
6HFWLRQ
/LDELOLW\IRU1RQ3HUIRUPDQFHRIWKH2EOLJDWLRQWR3UHYHQW'DPDJH
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
/LDELOLW\IRU6KRUWIDOOVLQ7KLQJVRI9DOXH(QWUXVWHGWRDQ(PSOR\HH 6HFWLRQ
,I RQ WKH EDVLV RI DQ DJUHHPHQWRQOLDELOLW\IRUWKLQJVRIYDOXHHQWUXVWHGWRDQHPSOR\HHPDWHULDO OLDELOLW\ WKHHPSOR\HHDFFHSWVOLDELOLW\IRUFDVKHQWUXVWHGWRKLPRUIRUVWDPSVJRRGVVWRFNVRIPDWHULDO RURWKHUWKLQJVRIYDOXHIRUZKLFKKHLVDFFRXQWDEOHKHVKDOOEHOLDEOHIRUDQ\VKRUWIDOOWKDWRFFXUV$WWKH VDPHWLPHLWPD\EHSURYLGHGIRULQWKHDJUHHPHQWZLWKHPSOR\HHVWKDWZKHQWKH\ZRUNDWDZRUNSODFH ZKHUHVHYHUDOHPSOR\HHVKDYHFRQFOXGHGDQDJUHHPHQWRQOLDELOLW\IRUWKLQJVRIYDOXHHQWUXVWHGWRWKHP WKH\ VKDOO EH MRLQWO\ DQG VHYHUDOO\ OLDEOH ZLWK WKH RWKHU HPSOR\HHV IRU DQ\ VKRUWIDOO MRLQW DQG VHYHUDO PDWHULDOOLDELOLW\
$QDJUHHPHQWRQOLDELOLW\IRUWKLQJVRIYDOXHHQWUXVWHGWRDQHPSOR\HHLHPDWHULDOOLDELOLW\ PXVWEH FRQFOXGHGLQZULWLQJRWKHUZLVHLWVKDOOEHYRLG
$Q HPSOR\HH VKDOO EH UHOLHYHG RI OLDELOLW\ ZKROO\ RU LQ SDUW LI KH SURYHV WKDW KHZDVQRWDWIDXOW HLWKHUIRUWKHZKROHVKRUWIDOORUDSDUWRILW
&HQWUDODXWKRULWLHVPD\GHWHUPLQHLQODERXUSURYLVLRQVWKHSULQFLSOHVIRUGHWHUPLQLQJZKLFKW\SHVRI ZRUN UHTXLUH WKH FRQFOXVLRQ RI DQ DJUHHPHQW RQ PDWHULDO OLDELOLW\ WKH HPSOR\HU VKDOO HQWHU LQWR VXFK DJUHHPHQWZLWKKLVHPSOR\HHVSHUIRUPLQJWKHVHW\SHVRIZRUN
6HFWLRQ
$QHPSOR\HHZKRHQWHUVLQWRDQDJUHHPHQWRQPDWHULDOOLDELOLW\PD\ZLWKGUDZIURPLWLHFDQFHOLW LI KH LV WUDQVIHUUHG WR DQRWKHU W\SH RI ZRUN WUDQVIHUUHG WR DQRWKHU ZRUNSODFH RU UHORFDWHG RU LI KLV
HPSOR\HUZLWKLQRQHPRQWKRIUHFHLYLQJZULWWHQQRWLILFDWLRQIURPKLPIDLOVWRUHPHG\GHIHFWVLQZRUNLQJ FRQGLWLRQVZKLFKSUHYHQWWKHHPSOR\HHIURPSURSHUO\PDQDJLQJLWHPVHQWUXVWHGWRKLP$QHPSOR\HHPD\ DOVRZLWKGUDZIURPDQDJUHHPHQWRQMRLQWDQGVHYHUDOPDWHULDOOLDELOLW\LIDQRWKHUHPSOR\HHLVDVVLJQHGWR WKHZRUNSODFHRUDQRWKHUPDQDJHULDOHPSOR\HHRUKLVGHSXW\LVDSSRLQWHG7KHHPSOR\HUPXVWEHQRWLILHG LQZULWLQJRIWKHZLWKGUDZDOFDQFHOODWLRQ
$QDJUHHPHQWRQPDWHULDOOLDELOLW\VKDOOWHUPLQDWHRQWKHGD\DQHPSOR\HH VHPSOR\PHQWUHODWLRQVKLS HQGVRUWKHDJUHHPHQWLVZLWKGUDZQIURPFDQFHOOHG
/LDELOLW\IRU/RVVRI,WHPV(QWUXVWHGWRDQ(PSOR\HH 6HFWLRQ
$Q HPSOR\HH VKDOO EH OLDEOH IRU WKH ORVV RI WRROV SURWHFWLYH ZRUNLQJ DLGV DQG RWKHU VLPLODU LWHPV ZKLFKWKHHPSOR\HUHQWUXVWVWRKLPDJDLQVWDZULWWHQFRQILUPDWLRQUHFHLSW
$Q HPSOR\HH VKDOO EH UHOLHYHG RI OLDELOLW\ ZKROO\ RU LQ SDUW LI KH SURYHV WKDW KHZDVQRWDWIDXOW HLWKHUIRUWKHZKROHORVVRUDSDUWRILW
-RLQW3URYLVLRQVRQWKH/LDELOLW\RI(PSOR\HHV 6HFWLRQD
$QHPSOR\HHZKRVXIIHUVIURPDPHQWDOGLVRUGHUVKDOORQO\EHOLDEOHIRUGDPDJHWKDWKHFDXVHVLIKHLV DEOHWRFRQWUROKLVFRQGXFWRUWRFRQVLGHUWKHFRQVHTXHQFHVRIKLVFRQGXFW
$Q HPSOR\HH ZKR WKURXJK KLV RZQ IDXOW EULQJV KLPVHOI WR VXFK D FRQGLWLRQ WKDW KH LV QRW DEOH WR FRQWURO KLV FRQGXFW RU WR FRQVLGHU WKH FRQVHTXHQFHV RI KLV FRQGXFW VKDOO EH OLDEOH IRU GDPDJH FDXVHG ZKLOHKHLVLQWKLVFRQGLWLRQ
$QHPSOR\HHZKRLQWHQWLRQDOO\FDXVHVGDPDJHE\FRQGXFWFRQWUDU\WRWKHUXOHVRIGHFHQF\DQGFLYLF FRH[LVWHQFHVKDOODOVREHOLDEOHIRUGDPDJH
6HFWLRQE
$QHPSOR\HHVKDOOQRWEHOLDEOHIRUGDPDJHZKLFKKHFDXVHVZKLOHDYHUWLQJGDPDJHWKUHDWHQLQJWKH HPSOR\HU VSURSHUW\RUDGDQJHUWKUHDWHQLQJKLVOLIHRUKHDOWKXQOHVVKHLQWHQWLRQDOO\EURXJKWWKLVVWDWHRI DIIDLUV XSRQ KLPVHOI DQG KH VLPXOWDQHRXVO\ EHKDYHG LQ D PDQQHU ZKLFK ZDV LQDGHTXDWH WR WKH FLUFXPVWDQFHV $QHPSOR\HHVKDOOQRWEHOLDEOHIRUGDPDJHZKLFKLVWKHFRQVHTXHQFHRIHFRQRPLFULVN
6FRSHRI'DPDJHV 6HFWLRQ
$Q HPSOR\HH ZKR LV OLDEOH IRU GDPDJH SXUVXDQW WR VHFWLRQ VKDOO FRPSHQVDWH WKHHPSOR\HUIRU DFWXDOGDPDJHQDPHO\LQPRQH\LIWKHGDPDJHFDQQRWEHPDGHJRRGE\WKHUHVWRUDWLRQRIWKLQJVWRWKHLU RULJLQDOFRQGLWLRQ
7KHDPRXQWRIGDPDJHVLHFRPSHQVDWLRQIRUGDPDJH WREHSDLGE\DQLQGLYLGXDOHPSOR\HHDVD UHVXOW RI KLV QHJOLJHQFH PD\ QRW H[FHHG DQ DPRXQW HTXDO WR IRXU DQG D KDOI WLPHV KLV DYHUDJH PRQWKO\ HDUQLQJVEHIRUHKHFDXVHGWKHGDPDJHE\QRQSHUIRUPDQFHRIKLVREOLJDWLRQ7KLVOLPLWVKDOOQRWDSSO\LI WKHGDPDJHZDVFDXVHGE\GUXQNHQQHVVZKLFKWKHHPSOR\HHKLPVHOIEURXJKWRQRUDIWHUKLVXVHRIRWKHU
DGGLFWLYHVXEVWDQFHV
,QWKHFDVHRIGDPDJHZKLFKZDVLQWHQWLRQDOO\FDXVHGWKHHPSOR\HUFDQDOVRGHPDQGFRPSHQVDWLRQ IRURWKHUGDPDJHIURPWKHHPSOR\HH
,I GDPDJH ZDV DOVR FDXVHG E\ WKH HPSOR\HU WKH HPSOR\HH VKDOO SD\ D SURSRUWLRQDWH SDUW RI WKH GDPDJHVDFFRUGLQJWRWKHH[WHQWRIKLVIDXOW
,IVHYHUDOHPSOR\HHVDUHOLDEOHWRSD\GDPDJHVWRWKHHPSOR\HUHDFKRIWKHPVKDOOSD\DSURSRUWLRQDWH VKDUHRIWKHPDFFRUGLQJWRWKHH[WHQWRIKLVIDXOW
6HFWLRQ
'HWHUPLQDWLRQ RI WKH DPRXQW RI GDPDJH WR DQ REMHFW VKDOO EH EDVHG RQ LWV SULFH DW WKH WLPH LW LV GDPDJHG
6HFWLRQ
$QHPSOR\HHZKRLVOLDEOHIRUDVKRUWIDOOLQVHFWLRQ RUWKHORVVRIVHFWLRQ LWHPVHQWUXVWHG WRKLPVKDOOPDNHXSWKHVKRUWIDOORUPDNHJRRGWKHORVVLQLWVHQWLUHW\
6HFWLRQ
,Q WKH FDVH RI MRLQW DQG VHYHUDO OLDELOLW\ IRU D VKRUWIDOO WKH LQGLYLGXDO HPSOR\HHV VKDUH RI WKH FRPSHQVDWLRQVKDOOEHGHWHUPLQHGDFFRUGLQJWRWKHUDWLRRIWKHLUJURVVHDUQLQJVZLWKWKHHDUQLQJVRIWKHLU PDQDJHUDQGKLVGHSXW\EHLQJFRXQWHGLQGRXEOHWKHLUDPRXQW
7KH VKDUH RI FRPSHQVDWLRQ GHWHUPLQHG LQ DFFRUGDQFH ZLWK WKH SUHFHGLQJ VXEVHFWLRQ IRU LQGLYLGXDO HPSOR\HHVZLWKWKHH[FHSWLRQRIWKHLUPDQDJHUDQGKLVGHSXW\PD\QRWH[FHHGDQDPRXQWHTXDOWRWKHLU DYHUDJH PRQWKO\ HDUQLQJV EHIRUH WKH GDPDJH RFFXUUHG ,I WKH HQWLUH GDPDJH LV QRW FRYHUHG E\ SURSRUWLRQDWHVKDUHVGHWHUPLQHGLQWKLVZD\WKHPDQDJHUDQGKLVGHSXW\VKDOOFRPSHQVDWHWKHEDODQFHLQ SURSRUWLRQWRWKHLUJURVVHDUQLQJV
,ILWLVDVFHUWDLQHGWKDWWKHVKRUWIDOORUDSDUWRILWZDVFDXVHGWKURXJKWKHIDXOWRIRQHRIWKHHPSOR\HHV ZKRLVMRLQWO\DQGVHYHUDOO\OLDEOHWKLVHPSOR\HHVKDOOPDNHXSWKHVKRUWIDOOLQDFFRUGDQFHZLWKWKHH[WHQW RIKLVIDXOW7KHUHPDLQLQJSRUWLRQRIWKHVKRUWIDOOVKDOOEHPDGHJRRGE\DOORIWKHHPSOR\HHVZKRDUH MRLQWO\ DQG VHYHUDOO\ OLDEOH LQ DFFRUGDQFH ZLWK WKH VKDUHV GHWHUPLQHG SXUVXDQW WR WKH SUHFHGLQJ VXEVHFWLRQ
6HFWLRQ
)RU UHDVRQV ZKLFK ZDUUDQW VSHFLDO FRQVLGHUDWLRQ WKH FRPSHWHQW FRXUW PD\ UHDVRQDEO\ UHGXFH FRPSHQVDWLRQIRUGDPDJHLHGDPDJHV
6HFWLRQ
$Q HPSOR\HH ZKR GXH WR QHJOLJHQFH FDXVHV GDPDJH WR WKH HPSOR\HU E\ SURGXFLQJ D GHIHFWLYH SURGXFWDUHMHFW VKDOOFRPSHQVDWHKLPIRUWKHDPRXQWVSHQWRQPDWHULDODQGZDJHVRUIRUWKHQHFHVVDU\ UHSDLUVWRWKHUHMHFWDQGPDFKLQHU\LIKHGDPDJHGLWZKLOHSURGXFLQJWKHUHMHFWXSWRDQDPRXQWHTXDOWR RQHKDOIRIKLVDYHUDJHPRQWKO\HDUQLQJV$QHPSOR\HHVKDOOQRWEHXQGHUWKLVREOLJDWLRQLIWKHHPSOR\HU GLGQRWUHTXLUHKLPWRVWRSZRUNLQJDIWHUWKHHPSOR\HHLQIRUPHGKLPRIWKHGHIHFW
)RUWKHSXUSRVHVRIGHWHUPLQLQJWKHDPRXQWRIFRPSHQVDWLRQIRUGDPDJHLHGDPDJHV DOOGDPDJH FDXVHGLQDVLQJOHFDOHQGDUPRQWKVKDOOEHDGGHGWRJHWKHU
,IDUHMHFWLVWKHUHVXOWRIDQH[FXVDEOHHUURURQWKHSDUWRIDQHPSOR\HHZKRLVRWKHUZLVHFRQVFLHQWLRXV LQKLVZRUNWKHHPSOR\HUPD\FRPPHQVXUDWHO\UHGXFHWKHDPRXQWRIGDPDJHVWKHHPSOR\HHPXVWSD\ +RZHYHU WKH DPRXQW RI GDPDJHV PXVW EH DW OHDVW RQHWKLUG RI WKH DFWXDO GDPDJH RU LI WKH GDPDJH H[FHHGVRQHKDOIRIWKHHPSOR\HH VDYHUDJHPRQWKO\HDUQLQJVDQDPRXQWHTXDOWRRQHVL[WKRIKLVDYHUDJH PRQWKO\HDUQLQJV
,IWKHGDPDJHLVFDXVHGE\DQHPSOR\HH VGUXQNHQQHVVRUE\KLVDEXVHRIRWKHUDGGLFWLYHVXEVWDQFHV KHVKDOOFRPSHQVDWHWKHDFWXDOGDPDJH7KHSURYLVLRQVRIVHFWLRQVKDOODOVRDSSO\
7KHREOLJDWLRQRIDQHPSOR\HHWRFRPSHQVDWHKLVHPSOR\HUIRUGDPDJHZKLFKKHFDXVHGKLPE\IDXOW\ PDQXDOZRUNLQYROYLQJ DVVHPEO\UHSDLUPRGLILFDWLRQRUFRQVWUXFWLRQFLYLOHQJLQHHULQJZRUN VKDOODOVR EHFRQVLGHUHGSXUVXDQWWRWKHSUHFHGLQJVXEVHFWLRQV
6HFWLRQ
7KHHPSOR\HUVKDOOGHWHUPLQHWKHDPRXQWRIGDPDJHVKHZLOOUHTXLUHLIDPDQDJHULDOHPSOR\HHZKR LV D VWDWXWRU\ RUJDQ RU KLV GHSXW\ FDXVHG WKH GDPDJH HLWKHU DORQH RU WRJHWKHU ZLWK D VXERUGLQDWH HPSOR\HH WKHRUJDQVXSHULRUWRKLPVKDOOGHWHUPLQHWKHGDPDJHV
7KHHPSOR\HUVKDOOGLVFXVVZLWKWKHHPSOR\HHWKHDPRXQWRIGDPDJHVUHTXLUHGDQGDVDUXOHLQIRUP KLPRILWQRODWHUWKDQRQHPRQWKDIWHUWKHGD\ZKHQLWZDVDVFHUWDLQHGWKDWWKHGDPDJHRFFXUUHGDQGWKDW WKHHPSOR\HHZDVOLDEOHIRULW
,IWKHHPSOR\HHDGPLWVKLVOLDELOLW\WRSD\GDPDJHVLQWKHDPRXQWGHWHUPLQHGDQGDJUHHVWKHPHWKRG RISD\PHQWZLWKWKHHPSOR\HUWKHHPSOR\HUVKDOOFRQFOXGHWKHDJUHHPHQWLQZULWLQJRWKHUZLVHLWVKDOOEH YRLG+RZHYHUDVHSDUDWHZULWWHQDJUHHPHQWVKDOOQRWEHQHFHVVDU\LIWKHHPSOR\HHKDVDOUHDG\SDLGWKH GDPDJHV
7KHHPSOR\HUVKDOOGLVFXVVZLWKWKHFRPSHWHQWWUDGHXQLRQRUJDQL]DWLRQRUJDQERG\ WKHDPRXQWRI GDPDJHVUHTXLUHGDQGWKHWHUPVRIWKHDJUHHPHQWRQWKHPHWKRGRISD\PHQWH[FHSWIRUFRPSHQVDWLRQRI GDPDJH FDXVHG E\ WKH SURGXFWLRQ RI D UHMHFW DQG GDPDJHV QRW H[FHHGLQJ &=. ,I D PDQDJHULDO HPSOR\HH ZKR LV D VWDWXWRU\ RUJDQ RU KLV GHSXW\ FDXVHV GDPDJH HLWKHU DORQH RU WRJHWKHU ZLWK D VXERUGLQDWHHPSOR\HH WKHRUJDQVXSHULRUWRKLPVKDOOGHWHUPLQHWKHGDPDJHVDIWHUFRQVXOWDWLRQZLWKWKH KLJKHUWUDGHXQLRQERG\RUJDQ
6HFWLRQ 5HSHDOHG
'LYLVLRQ
/LDELOLW\RI(PSOR\HUVIRU'DPDJH 6HFWLRQO
*HQHUDO/LDELOLW\
7KH HPSOR\HU VKDOO EH OLDEOH WR DQ HPSOR\HH IRU GDPDJH ZKLFK RFFXUV WR WKH HPSOR\HH ZKLOH SHUIRUPLQJKLVZRUNLQJWDVNVRULQGLUHFWFRQQHFWLRQWKHUHZLWKGXHWRWKHHPSOR\HU VEUHDFKRIVWDWXWRU\ REOLJDWLRQVRUZLOIXOFRQGXFWE\KLPZKLFKLVFRQWUDU\WRWKHUXOHVRIGHFHQF\DQGFLYLFFRH[LVWHQFH
7KHHPSOR\HUVKDOODOVREHOLDEOHWRDQHPSOR\HHIRUGDPDJHZKLFKRWKHUHPSOR\HHVDFWLQJRQEHKDOI RIWKHHPSOR\HUFDXVHWRVXFKHPSOR\HHE\EUHDFKLQJWKHLUREOLJDWLRQVZKLOHSHUIRUPLQJWDVNVVHWE\WKH HPSOR\HUVHFWLRQVDQG
7KH HPSOR\HU VKDOO QRW EH OLDEOH WR KLV HPSOR\HH IRU GDPDJH WR D PHDQV RI WUDQVSRUW ZKLFK WKH HPSOR\HH XVHV ZLWKRXW WKH HPSOR\HU V FRQVHQW ZKLOH SHUIRUPLQJ ZRUNLQJ WDVNV RU LQ GLUHFW FRQQHFWLRQ WKHUHZLWK
6HFWLRQVDQG 5HSHDOHG
/LDELOLW\IRU'DPDJHLQ&DVHVRI,QMXULHVDW:RUNDQG2FFXSDWLRQDO'LVHDVHV 6HFWLRQ
,IDQHPSOR\HHVXIIHUVKDUPWRKLVKHDOWKRUGHDWKIURPDQLQMXU\DQDFFLGHQW ZKLOHSHUIRUPLQJKLV ZRUNLQJ GXWLHV RU LQ GLUHFW FRQQHFWLRQ WKHUHZLWK DQ LQGXVWULDOLQMXU\LHLQMXU\DWZRUN WKHHPSOR\HU ZLWK ZKRP WKH HPSOR\HH KDG DQ HPSOR\PHQW UHODWLRQVKLS DW WKH WLPH RI WKH LQMXU\ VKDOO EH OLDEOH IRU GDPDJHFDXVHGE\WKDWLQMXU\
$QLQMXU\ZKLFKDQHPSOR\HHVXIIHUVRQWKHZD\WRZRUNRURQWKHZD\KRPHVKDOOQRWEHFRQVLGHUHG DVDQLQMXU\DFFLGHQW DWZRUN
7KHHPSOR\HUVKDOOEHOLDEOHIRUGDPDJHFDXVHGWRDQHPSOR\HHE\DQRFFXSDWLRQDOGLVHDVHLISULRUWR LWV GLVFRYHU\ WKH HPSOR\HH ODVW ZRUNHG IRU WKDW HPSOR\HU LQ DQ HPSOR\PHQW UHODWLRQVKLS XQGHU WKH FRQGLWLRQVFDXVLQJVXFKGLVHDVH2FFXSDWLRQDOGLVHDVHVVKDOOEHWKRVHGLVHDVHVZKLFKDUHVSHFLILHGLQWKH VWDWXWRU\SURYLVLRQVRQVRFLDOVHFXULW\DOLVWRIRFFXSDWLRQDOGLVHDVHV LIWKH\RFFXUXQGHUWKHFRQGLWLRQV VWLSXODWHGWKHUHLQ
(YHQDGLVHDVHZKLFKRFFXUUHGSULRUWRVXFKGLVHDVHEHLQJLQFOXGHGLQWKHOLVWRIRFFXSDWLRQDOGLVHDVHV VKDOOEHFRPSHQVDWHGDVDQRFFXSDWLRQDOGLVHDVHDQGWKLVIURPWKHWLPHZKHQWKHGLVHDVHLVLQFOXGHGLQ WKH OLVW DV ZHOO DV UHWURDFWLYHO\ IRU XS WR D PD[LPXP SHULRG RI WKUHH \HDUV SULRU WRVXFKGLVHDVHEHLQJ OLVWHG
$QHPSOR\HUVKDOOFRPSHQVDWHGDPDJHHYHQLIKHIXOILOVKLVREOLJDWLRQVXQGHUWKHVWDWXWRU\SURYLVLRQV DQGUHJXODWLRQVRQHQVXULQJVDIHW\DQGWKHSURWHFWLRQRIKHDOWKDWZRUNXQOHVVKHLVH[HPSWHGIURPWKLV OLDELOLW\SXUVXDQWWRVHFWLRQ
6HFWLRQ
7KHHPSOR\HUVKDOOEHFRPSOHWHO\H[HPSWIURPOLDELOLW\LIKHSURYHVWKDW
D WKH GDPDJH ZDV FDXVHG E\ WKH IDFW WKDW WKH DIIOLFWHG LQMXUHG HPSOR\HH WKURXJK KLV RZQ IDXOW EUHDFKHGWKHVWDWXWRU\SURYLVLRQVRWKHUUHJXODWLRQVRULQVWUXFWLRQVHQVXULQJVDIHW\DQGWKHSURWHFWLRQ RI KHDOWK DW ZRUN HYHQ WKRXJK KH ZDV SURSHUO\ DFTXDLQWHG ZLWK WKHP DQG KLV NQRZOHGJH DQG REVHUYDQFHRIWKHPZDVV\VWHPDWLFDOO\UHTXLUHGDQGFKHFNHGRU
E LIWKHDIIOLFWHGLQMXUHG HPSOR\HHEURXJKWWKHGDPDJHXSRQKLPVHOIE\GUXQNHQQHVVRUDVDUHVXOWRI KLVDEXVHRIRWKHUDGGLFWLYHVXEVWDQFHVDQGWKHHPSOR\HUZDVQRWDEOHWRSUHYHQWWKHGDPDJH
DQGWKDWWKRVHIDFWVFRQVWLWXWHGWKHVROHFDXVHRIWKHGDPDJH
7KHHPSOR\HUVKDOOEHH[HPSWIURPOLDELOLW\LQSDUWLIKHSURYHVWKDW
D WKH DIIOLFWHG LQMXUHG HPSOR\HH WKURXJK KLV RZQ IDXOW EUHDFKHG WKH VWDWXWRU\ SURYLVLRQV RWKHU UHJXODWLRQVRULQVWUXFWLRQVHQVXULQJVDIHW\DQGWKHSURWHFWLRQRIKHDOWKDWZRUNHYHQWKRXJKKHZDV SURSHUO\DFTXDLQWHGZLWKWKHPDQGWKDWWKLVEUHDFKZDVRQHRIWKHFDXVHVRIWKHGDPDJH
E RQHRIWKHFDXVHVRIWKHGDPDJHZDVWKHGUXQNHQQHVVRIWKHDIIOLFWHGLQMXUHG HPSOR\HHRUKLVDEXVH RIRWKHUDGGLFWLYHVXEVWDQFHV
F WKH HPSOR\HH VXIIHUHG GDPDJH EHFDXVH KH DFWHG FRQWUDU\ WR XVXDO FRQGXFW SUDFWLFHV VR WKDW LW LV HYLGHQWWKDWHYHQWKRXJKKHGLGQRWEUHDFKDQ\VWDWXWRU\SURYLVLRQVRWKHUUHJXODWLRQVRULQVWUXFWLRQV HQVXULQJVDIHW\DQGWKHSURWHFWLRQRIKHDOWKDWZRUNKHDFWHGUHFNOHVVO\DQGFRQVLGHULQJKLVVNLOOVDQG H[SHULHQFHKHPXVWKDYHEHHQDZDUHWKDWKHFRXOGFDXVHGDPDJHWRKLVKHDOWK
,IWKHHPSOR\HULVH[HPSWIURPOLDELOLW\LQSDUW>VXEVHFWLRQ @WKHSDUWRIWKHGDPDJHIRUZKLFKWKH HPSOR\HHVKDOOEHKHOGUHVSRQVLEOHVKDOOEHGHWHUPLQHGDFFRUGLQJWRWKHGHJUHHRIKLVIDXOWKRZHYHULQ WKHFDVHVVWDWHGLQVXEVHFWLRQ F WKHHPSOR\HUVKDOOFRPSHQVDWHDWOHDVWRQHWKLUGRIWKHGDPDJH
:KHQ FRQVLGHULQJ ZKHWKHU DQ HPSOR\HH EUHDFKHG VWDWXWRU\ SURYLVLRQV RU RWKHU UHJXODWLRQV RQ HQVXULQJVDIHW\DQGWKHSURWHFWLRQRIKHDOWKDWZRUN>VXEVHFWLRQV D DQG D @LWLVQRWSRVVLEOHWR UHIHURQO\WRWKHJHQHUDOSURYLVLRQVDFFRUGLQJWRZKLFKHYHU\RQHVKRXOGDFWLQVXFKDPDQQHUDVQRWWR HQGDQJHUKLVRZQKHDOWKRUWKDWRIRWKHUV
&RPPRQFDUHOHVVQHVVDQGFRQGXFWSUDFWLFHV DULVLQJIURPWKHULVNVRIZRUNFDQQRWEHFRQVLGHUHGDV UHFNOHVVFRQGXFW>VXEVHFWLRQ F @
6HFWLRQ
7KH HPSOR\HU PD\ QRW EH H[HPSW IURP OLDELOLW\ LI DQ HPSOR\HH VXVWDLQV DQ LQMXU\ DW ZRUN ZKLOH SUHYHQWLQJLPPLQHQWGDPDJHWRWKHHPSOR\HU VSURSHUW\RUDGDQJHUGLUHFWO\SXWWLQJDWULVNOLIHRUKHDOWK LIWKHHPSOR\HHGLGQRWKLPVHOIZLOIXOO\EULQJDERXWWKDWVWDWHRIDIIDLUV
6HFWLRQ
,Q WKH FDVH RI DQ HPSOR\HH ZKR VXVWDLQV DQ LQMXU\ DW ZRUN DQ LQGXVWULDO LQMXU\ RU ZKR KDV EHHQ GLDJQRVHG DV KDYLQJDQRFFXSDWLRQDOGLVHDVHKHVKDOOEHFRPSHQVDWHGE\KLVHPSOR\HUWRWKHH[WHQWWR ZKLFKWKHHPSOR\HULVOLDEOHWKHHPSOR\HUVKDOOFRPSHQVDWHVXFKHPSOR\HHSURSRUWLRQDWHO\ IRU
D ORVVRIHDUQLQJV
E SDLQDQGDJJUDYDWLRQRIVRFLDOVHOIDVVHUWLRQXVHIXOQHVV
F WKHSXUSRVHIXOO\LQFXUUHGFRVWRIPHGLFDOWUHDWPHQW
G PDWHULDOGDPDJHWKHSURYLVLRQVRIVHFWLRQ VKDOODSSO\WRWKLVFDVH
:LWKRXW XQGXH GHOD\ WKH HPSOR\HU VKDOO GLVFXVV WKH PHWKRG DQG H[WHQW RI FRPSHQVDWLRQ ZLWK WKH FRPSHWHQWWUDGHXQLRQRUJDQL]DWLRQRUJDQERG\ DQGWKHHPSOR\HH
6HFWLRQD
&RPSHQVDWLRQIRUORVVRIHDUQLQJVGXULQJDSHULRGRILQDELOLW\WRZRUNDQGIRUORVVRIHDUQLQJVDIWHU WKH HQG RI WKH SHULRG RI LQDELOLW\ WR ZRUN IRU WKH VDPH UHDVRQV DUH VHSDUDWH DQG QRW FRQFXUUHQW HQWLWOHPHQWV
6HFWLRQ
&RPSHQVDWLRQIRUORVVRIHDUQLQJVGXULQJWKHSHULRGRIDQHPSOR\HH VLQDELOLW\WRZRUNVKDOOEHLQDQ DPRXQW FRUUHVSRQGLQJ WR WKH GLIIHUHQFH EHWZHHQ KLV DYHUDJH HDUQLQJV EHIRUHWKHGDPDJHFDXVHGE\WKH LQMXU\DWZRUNLQGXVWULDOLQMXU\ RURFFXSDWLRQDOGLVHDVHDQGWKHIXOODPRXQWRIKLVVLFNQHVVEHQHILWV
7KHUH VKDOO EH DQ HQWLWOHPHQW WR FRPSHQVDWLRQ IRU GDPDJH XQGHU WKH SUHFHGLQJ VXEVHFWLRQ HYHQ LI WKHUHLVDIXUWKHUSHULRGRILQDELOLW\WRZRUNGXHWRWKHVDPHLQMXU\DWZRUNRURFFXSDWLRQDOGLVHDVHWKLV FRPSHQVDWLRQ VKDOO EH EDVHG RQ WKH HPSOR\HH V DYHUDJH HDUQLQJV EHIRUH WKH RFFXUUHQFH RI WKH IXUWKHU GDPDJH +RZHYHU LI EHIRUH WKH RFFXUUHQFH RI WKLV IXUWKHU GDPDJH WKH HPSOR\HH ZDV HQWLWOHG WR FRPSHQVDWLRQ IRU ORVV RI HDUQLQJV DIWHU WKH SHULRG RI LQDELOLW\ WR ZRUN HQGHG KH VKDOO UHFHLYH FRPSHQVDWLRQLQDFFRUGDQFHZLWKWKHSUHFHGLQJVXEVHFWLRQXSWRWKHDPRXQWWRZKLFKKHZRXOGKDYHEHHQ HQWLWOHGSXUVXDQWWRVHFWLRQLIKHKDGEHHQXQILWWRZRUNKLVVLFNQHVVEHQHILWVVKDOOEHFRQVLGHUHGDV HDUQLQJVIROORZLQJDQLQMXU\DWZRUNRUWKHDVFHUWDLQPHQWRIDQRFFXSDWLRQDOGLVHDVH
6HFWLRQ
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
7KH HPSOR\HH VKDOO EH HQWLWOHG WR FRPSHQVDWLRQ IRU ORVV RI HDUQLQJV DIWHU WKH HQG RI WKH SHULRG RI LQDELOLW\WRZRUNGXULQJDVXEVHTXHQWSHULRGRILQDELOLW\WRZRUNIRUUHDVRQVRWKHUWKDQKLVLQLWLDOLQMXU\DW ZRUNLQGXVWULDOLQMXU\ RURFFXSDWLRQDOGLVHDVH$IWHUDQLQMXU\DWZRUNRUGLVFRYHU\RIDQRFFXSDWLRQDO GLVHDVHWKHHDUQLQJVRQZKLFKWKHDPRXQWRIVLFNQHVVEHQHILWVZDVEDVHGVKDOOEHDSSOLFDEOH
$Q HPSOR\HH ZKR ZLWKRXW JRRG UHDVRQ UHIXVHV WR WDNH XS ZRUN ZKLFK ZDV IRXQG IRU KLP LV RQO\ HQWLWOHGWRFRPSHQVDWLRQIRUORVVRIHDUQLQJVSXUVXDQWWRWKHSUHFHGLQJVXEVHFWLRQLQDQDPRXQWHTXDOWR WKH GLIIHUHQFH EHWZHHQ KLV DYHUDJH HDUQLQJV EHIRUH WKH RFFXUUHQFH RI DQ LQMXU\ RU GLVFRYHU\ RI RFFXSDWLRQDO GLVHDVH DQG WKH DYHUDJH HDUQLQJV ZKLFK KH PLJKW KDYH DWWDLQHG E\ SHUIRUPLQJ WKH ZRUN IRXQGIRUKLP7KHHPSOR\HUVKDOOQRWFRPSHQVDWHWKHHPSOR\HHXSWRDQDPRXQWZKLFKZLWKRXWJRRG UHDVRQKHIDLOHGWRHDUQ
7KH HPSOR\HH VKDOO EH HQWLWOHG WR FRPSHQVDWLRQ IRU ORVV RI HDUQLQJV DIWHU WKH HQG RI WKH SHULRG RI LQDELOLW\ WR ZRUN EXW WKLV HQWLWOHPHQW VKDOO QRW ODVW ORQJHU WKDQ XQWLO WKH HQGRIWKHPRQWKLQZKLFKKH UHDFKHVWKHDJHRI
6HFWLRQD
$SRVVLEOHORVVRISHQVLRQVKDOOQRWEHFRQVLGHUHGDVGDPDJHXQGHUWKLV&RGH 6HFWLRQ
&RPSHQVDWLRQ IRU SDLQ DQG DJJUDYDWLRQ RI VRFLDO VHOIDVVHUWLRQ XVHIXOQHVV ZKLFK WKH HPSOR\HH VXVWDLQVDVDUHVXOWRIDQLQMXU\DWZRUNLQGXVWULDOLQMXU\ RURFFXSDWLRQDOGLVHDVHVKDOOEHSDLGLQDOXPS VXP
6HFWLRQ
,I DQ HPSOR\HH GLHV DV WKH UHVXOW RI DQ LQMXU\ DFFLGHQW DW ZRUN RU DQ RFFXSDWLRQDO GLVHDVH KLV HPSOR\HUVKDOOWRWKHH[WHQWRIKLVOLDELOLW\ D UHLPEXUVHDPRXQWVVSHQWRQSXUSRVHIXOO\LQFXUUHGH[SHQVHVFRQQHFWHGZLWKKLVPHGLFDOWUHDWPHQW
E UHLPEXUVHUHDVRQDEOHIXQHUDOH[SHQVHV
F UHLPEXUVHWKHFRVWRIPDLQWDLQLQJKLVVXUYLYRUV G SD\DOXPSVXPWRKLVVXUYLYRUV
H FRPSHQVDWHPDWHULDOGDPDJHSURYLVLRQVRIVHFWLRQ VKDOODOVRDSSO\WRWKLVFDVH
7KHHQWLWOHPHQWVGXHSXUVXDQWWRWKHSUHFHGLQJVXEVHFWLRQVKDOOQRWGHSHQGRQWKHHPSOR\HHKDYLQJ FODLPHGKLVGDPDJHVZLWKLQWKHGHWHUPLQHGSHULRG
6HFWLRQ
7KHSHUVRQZKRPHWWKHFRVWRIPHGLFDOWUHDWPHQWDQGWKHIXQHUDOH[SHQVHVVKDOOEHUHLPEXUVHG$Q\ IXQHUDOJUDQWXQGHUWKH6WDWH6RFLDO6XSSRUW$FWVKDOOEHGHGXFWHGIURPWKHIXQHUDOH[SHQVHV
6HFWLRQ
5HLPEXUVHPHQWRIWKHFRVWRIWKHVXUYLYRUV PDLQWHQDQFHVKDOOEHGXHWRWKRVHVXUYLYRUVZKRPWKH GHFHDVHGPDLQWDLQHGRUZDVXQGHUDQREOLJDWLRQWRPDLQWDLQ
&DOFXODWLRQRIWKLVUHLPEXUVHPHQWVKDOOEHEDVHGRQWKHDYHUDJHHDUQLQJVRIWKHGHFHDVHGKRZHYHU UHLPEXUVHPHQW RI WKH FRVW RI PDLQWDLQLQJ DOO RI WKH VXUYLYRUV PD\ QRW H[FHHG WKH WRWDO DPRXQW RI FRPSHQVDWLRQIRUORVVRIHDUQLQJVWRZKLFKWKHGHFHDVHGZRXOGKDYHEHHQHQWLWOHGXQGHUVHFWLRQDQG LW PD\ QRW EH SURYLGHG IRU D ORQJHU WLPH WKDQ WKH FRPSHQVDWLRQ ZRXOG KDYH EHHQ SDLG WR WKH GHFHDVHG XQGHUVHFWLRQ
5HLPEXUVHPHQW RI FRVWV LV GXH XQOHVV LW LV FRYHUHG E\ WKH SD\PHQW RI SHQVLRQ LQVXUDQFH EHQHILWV JUDQWHGIRUWKHVDPHUHDVRQ
6HFWLRQ
$QDZDUGRIGDPDJHVLQWKHIRUPRIDOXPSVXPLVGXHWRDVSRXVHRUDFKLOGHQWLWOHGWRDZLGRZ VRU RUSKDQ VSHQVLRQ7KHFKLOGLVHQWLWOHGWR&=.DQGWKHVSRXVHWR&=.,QZDUUDQWHGFDVHV WKHSDUHQWVRIWKHGHFHDVHGVKDOODOVREHDZDUGHGDOXPSVXPRI&=.$KLJKHUDPRXQWPD\EH DJUHHG LQ D FROOHFWLYH EDUJDLQLQJ DJUHHPHQW RU SUHVFULEHG LQ LQWHUQDO UHJXODWLRQV 7KH VDPH VKDOO DOVR DSSO\WRHPSOR\HUVZKRDUHQRWHQJDJHGLQEXVLQHVVDFWLYLWLHV &RPSHQVDWLRQIRUPDWHULDOGDPDJHVKDOOEHGXHWRWKHHPSOR\HH VKHLUV
6HFWLRQ 5HSHDOHG
6HFWLRQ
,Q WKH FDVH RI D VXEVWDQWLDO FKDQJH LQ WKH LQMXUHG DJJULHYHG SHUVRQ V FLUFXPVWDQFHV ZKLFK ZHUH GHFLVLYHIRUGHWHUPLQDWLRQRIWKHDPRXQWRIGDPDJHVWKHLQMXUHGSHUVRQDQGWKHHPSOR\HUPD\UHTXLUHDQ DGMXVWPHQWRIWKHLUULJKWVRUREOLJDWLRQV
,QUHVSHFWRIFKDQJHVLQWKHOHYHORIZDJHVWKH*RYHUQPHQWFDQPRGLI\WKHFRQGLWLRQVDPRXQWDQG PHWKRG RI FRPSHQVDWLRQ IRU ORVV RI HDUQLQJV GXH WR HPSOR\HHV DIWHU WKH HQG RI D SHULRGRILQDELOLW\WR ZRUNFDXVHGE\DQLQMXU\DWZRUNLQGXVWULDOLQMXU\ RURFFXSDWLRQDOGLVHDVH
6HFWLRQ
7KH 0LQLVWU\ RI +HDOWK DFWLQJ LQ DJUHHPHQW ZLWK WKH 0LQLVWU\ RI /DERXU DQG 6RFLDO $IIDLUV PD\ VWLSXODWH LQ D GHFUHH WKH PD[LPXP DPRXQW RI FRPSHQVDWLRQ IRU SDLQ DQG DJJUDYDWLRQ RI VRFLDO VHOI DVVHUWLRQXVHIXOQHVV DQGWKHPHWKRGRIGHWHUPLQLQJVXFKDPRXQWVLQLQGLYLGXDOFDVHV
/LDELOLW\LQ6SHFLDO&DVHV 6HFWLRQ
/LDELOLW\IRU'DPDJHWR'HSRVLWHG,WHPV
7KHHPSOR\HUZLWKZKRPDQHPSOR\HHKDVDQHPSOR\PHQWUHODWLRQVKLSVKDOOEHOLDEOHIRUGDPDJHWR LWHPVZKLFKVXFKHPSOR\HHZKLOHSHUIRUPLQJKLVZRUNRULQGLUHFWFRQQHFWLRQWKHUHZLWKOHDYHVRQWKH HPSOR\HU VSUHPLVHVLQDSODFHGHWHUPLQHGIRUWKLVSXUSRVHRUDSODFHZKHUHVXFKLWHPVDUHXVXDOO\OHIW
7KH HPSOR\HU VKDOO RQO\ EH OLDEOH IRU VXFK WKLQJVXSWRDPD[LPXPDPRXQWRI&=.XQOHVV LWHPV ZKLFK HPSOR\HHV GR QRW XVXDOO\ EULQJ WR ZRUN ODUJHU VXPV RI PRQH\ MHZHOOHU\ DQG RWKHU YDOXDEOHV ZHUHDFFHSWHGIRUVDIHNHHSLQJ+RZHYHULILWLVDVFHUWDLQHGWKDWWKHGDPDJHWRWKHWKLQJVZDV FDXVHGE\DQRWKHURIWKHHPSOR\HU VHPSOR\HHVRULIWKHHPSOR\HUDFFHSWHGLWHPVIRUVDIHNHHSLQJVSHFLDO FXVWRG\ WKHHPSOR\HUVKDOOFRPSHQVDWHWKHGDPDJHZLWKRXWOLPLW
7KHHQWLWOHPHQWWRFRPSHQVDWLRQIRUGDPDJHWHUPLQDWHVLIWKHHPSOR\HHGRHVQRWQRWLI\WKHHPSOR\HU RILWZLWKRXWXQGXHGHOD\DWWKHODWHVWZLWKLQGD\VRIWKHGD\KHOHDUQVRIWKHGDPDJH
6HFWLRQ
/LDELOLW\IRU$YHUWLQJ'DPDJH
$QHPSOR\HHZKRVXIIHUVPDWHULDOGDPDJHZKLOHDYHUWLQJGDPDJHWKUHDWHQLQJWKHHPSOR\HU VSURSHUW\ VKDOO EH HQWLWOHG WR UHFHLYH FRPSHQVDWLRQ IURP WKH HPSOR\HU IRU WKH GDPDJH VXIIHUHG DQG DOVR FRPSHQVDWLRQIRUDPRXQWVXVHIXOO\VSHQWIRUWKLVSXUSRVHSURYLGHGWKDWVXFKHPSOR\HHGLGQRWZLOIXOO\ EULQJDERXWWKHGDQJHUKLPVHOIDQGSURYLGHGWKDWKHDFWHGUHDVRQDEO\LQWKHFLUFXPVWDQFHV
7KLVHQWLWOHPHQWVKDOODOVRSHUWDLQWRDQHPSOR\HHZKRDYHUWVDGDQJHUSXWWLQJDWULVNOLIHRUKHDOWKLI WKHHPSOR\HUZRXOGKDYHEHHQOLDEOHIRUWKHGDPDJHFDXVHG
-RLQW3URYLVLRQVRQ(PSOR\HU V/LDELOLW\ 6HFWLRQD
,I WKH HPSOR\HU SURYHV WKDW GDPDJH ZDV DOVR FDXVHG E\ WKH HPSOR\HH ZKR VXIIHUHG GDPDJH WKH HPSOR\HU V OLDELOLW\ IRU WKH GDPDJH VKDOO EH SURSRUWLRQDWHO\ UHGXFHG OLDELOLW\ IRU GDPDJH FRQFHUQLQJ LQMXULHVDWZRUNRURFFXSDWLRQDOGLVHDVHVVKDOOEHVXEMHFWWRWKHSURYLVLRQVRIVHFWLRQ
6HFWLRQE
7KHHPSOR\HUVKDOOFRPSHQVDWHDQHPSOR\HHIRUKLVDFWXDOGDPDJHLQPRQH\LIWKHHPSOR\HUFDQQRW
PDNHJRRGWKHGDPDJHE\UHVWRULQJWKHWKLQJWRLWVSUHYLRXVFRQGLWLRQ,IWKHGDPDJHZDVZLOIXOO\FDXVHG WKHHPSOR\HHPD\DOVRFODLPFRPSHQVDWLRQIRURWKHUGDPDJH,IGDPDJHKDUP WRKHDOWKRWKHUWKDQWKDW FDXVHGE\DQLQMXU\DWZRUNRURFFXSDWLRQDOGLVHDVHLVLQYROYHGWKHQWKHSURYLVLRQVRQLQMXULHVDWZRUN LQGXVWULDOLQMXULHV VKDOODSSO\WRWKHPHWKRGDQGH[WHQWRIWKHFRPSHQVDWLRQKRZHYHUVXUYLYRUVVKDOOQRW EHHQWLWOHGWROXPSVXPGDPDJHV
7KHDPRXQWRIPDWHULDOGDPDJHVKDOOEHEDVHGRQWKHSULFHRIWKHSURSHUW\DWWKHWLPHRIWKHGDPDJH
&RPSHQVDWLRQIRUORVVRIHDUQLQJVVKDOOEHSDLGE\WKHHPSOR\HUUHJXODUO\RQFHDPRQWK
6HFWLRQF
$QHPSOR\HUZKRFRPSHQVDWHVDQLQMXUHGDJJULHYHG SHUVRQIRUGDPDJHGRQHWRKLPVKDOOEHHQWLWOHG WRFRPSHQVDWLRQIURPWKHSHUVRQZKRXQGHUWKH&LYLO&RGHLVOLDEOHIRUVXFKGDPDJHWKHHQWLWOHPHQW FRUUHVSRQGVWRWKHH[WHQWRIWKDWSHUVRQ VOLDELOLW\WRZDUGVWKHLQMXUHGSHUVRQXQOHVVRWKHUZLVHDJUHHGLQ DGYDQFH
,QWKHFDVHRIGDPDJHVUHODWHGWRDQRFFXSDWLRQDOGLVHDVHWKHHPSOR\HUZKRFRPSHQVDWHGWKHGDPDJH VKDOOEHHQWLWOHGWRUHLPEXUVHPHQWVIURPDOOHPSOR\HUVIRUZKRPWKHDIIOLFWHGHPSOR\HHZRUNHGXQGHUWKH FRQGLWLRQV ZKLFK FDXVHG WKH RFFXSDWLRQDO GLVHDVH WR DQ H[WHQW FRUUHVSRQGLQJ WR WKH OHQJWK RI WLPH IRU ZKLFKWKHHPSOR\HHZRUNHGIRUDQ\VXFKHPSOR\HUXQGHUWKHVDLGFRQGLWLRQV
6HFWLRQG
6WDWXWRU\,QVXUDQFHRI(PSOR\HU V/LDELOLW\IRU'DPDJH5HODWLQJWRDQ,QMXU\DW:RUNRU 2FFXSDWLRQDO'LVHDVH
(PSOR\HUVHPSOR\LQJDWOHDVWRQHHPSOR\HHVKDOOEHLQVXUHGDJDLQVWOLDELOLW\IRUGDPDJHFDXVHGE\ LQMXULHVDWZRUNLHLQGXVWULDOLQMXULHV DQGE\RFFXSDWLRQDOGLVHDVHVKHUHDIWHU³VWDWXWRU\LQVXUDQFH´ ZLWK ýHVNiSRMLã RYQD&]HFK,QVXUDQFH&RPSDQ\ MRLQWVWRFNFRPSDQ\SURYLGHGWKDWWKHVHHPSOR\HUVZHUH FRYHUHG E\ D UHOHYDQW LQVXUDQFH SROLF\ ZLWK ýHVNi SRMLã RYQD RQ 'HFHPEHU 2WKHU HPSOR\HUV VKDOO EH LQVXUHG ZLWK WKH &]HFKRVORYDN FRRSHUDWLYH LQVXUDQFH FRPSDQ\ .RRSHUDWLYD MRLQW VWRFN FRPSDQ\RULWVOHJDOVXFFHVVRULQWKH&]HFK5HSXEOLFKHUHDIWHURQO\³WKHLQVXUDQFHFRPSDQLHV´ 7KLV VKDOOQRWDSSO\WRHPSOR\HUVLIWKH\KDYHWKHVWDWXVRIRUJDQL]DWLRQDOFRPSRQHQWVHVWDEOLVKPHQWV RIWKH 6WDWH1RWH 6KRXOG WKH LQVXUDQFH FRPSDQLHV VXIIHU D ILQDQFLDO ORVVGHWULPHQW DVDUHVXOWRIWKHLURSHUDWLRQRI VWDWXWRU\LQVXUDQFHWKH\VKDOOEHHQWLWOHGWRFRPSHQVDWLRQIRUWKHORVVIURPWKHVWDWHEXGJHW$Q\JDLQV DFFUXLQJWRWKHLQVXUDQFHFRPSDQLHVIURPVWDWXWRU\LQVXUDQFHVKDOOEHWUDQVIHUUHGWRWKHVWDWHEXGJHW
$ ILQDQFLDO ORVV VKDOO PHDQ D ORVV WR WKH LQVXUDQFH FRPSDQ\ UHVXOWLQJ IURP LWV VWDWXWRU\ LQVXUDQFH RSHUDWLRQV7KLVORVVVKDOOEHDQHJDWLYHEDODQFHEHWZHHQWKHHVWLPDWHGFRVWRILQVXUDQFHEHQHILWVWREH SDLGDQGWKHDFWXDOFRVWRILQVXUDQFHEHQHILWVSDLGRXWDVDFFRXQWHGIRUDW'HFHPEHUHDFK\HDU
$QLQVXUDQFHFRPSDQ\ VVXUSOXVIURPVWDWXWRU\LQVXUDQFHVKDOOPHDQDSRVLWLYHEDODQFHEHWZHHQWKH HVWLPDWHG FRVW RI LQVXUDQFH EHQHILWV WR EH SDLG DQG WKH DFWXDO FRVW RI LQVXUDQFH EHQHILWV SDLG RXW DV DFFRXQWHGIRUE\WKHLQVXUDQFHFRPSDQ\DW'HFHPEHUHDFK\HDU
7KHLQVXUDQFHFRPSDQ\VKDOOQRWLI\WKH0LQLVWU\RI)LQDQFHRIWKHILQDQFLDOUHVXOWVRILWVVWDWXWRU\ LQVXUDQFHRSHUDWLRQVLQWKHSUHFHGLQJ\HDUE\0DUFKRIWKHIROORZLQJ\HDUDWWKHODWHVW7KH0LQLVWU\ VKDOOFRPSHQVDWHVXFKILQDQFLDOORVVRIWKHSUHFHGLQJ\HDUE\-XQHRIWKHFXUUHQW\HDUDWWKHODWHVW%\ WKHVDPHGDWHDQ\VXUSOXVIURPVWDWXWRU\LQVXUDQFHPXVWEHWUDQVIHUUHGWRWKHVWDWHEXGJHW
7KHLQVXUDQFHFRPSDQLHVVKDOONHHSWKHLUUHFRUGVRIVWDWXWRU\LQVXUDQFHVHSDUDWHO\IURPWKHUHFRUGVRI WKHLURWKHUDFWLYLWLHV,QDGGLWLRQWRWKLVWKH&]HFKRVORYDNFRRSHUDWLYHLQVXUDQFHFRPSDQ\.RRSHUDWLYD
MRLQWVWRFNFRPSDQ\VKDOONHHSVHSDUDWHDFFRXQWLQJUHFRUGVIRULWVVWDWXWRU\LQVXUDQFHRSHUDWLRQVLQWKH &]HFK5HSXEOLFDQGWKH6ORYDN5HSXEOLF
7KH0LQLVWU\RI)LQDQFHVKDOOGHWHUPLQHLQDGHFUHHGHWDLOVRIWKHFRQGLWLRQVDQGUDWHVRILQVXUDQFH SUHPLXPV
,IDQHPSOR\HU VULJKWVDQGREOLJDWLRQVIURPODERXUUHODWLRQVDUHQRWWUDQVIHUUHGWRDQRWKHUHPSOR\HU ZKHQWKHIRUPHUHPSOR\HU VXQGHUWDNLQJHQWHUSULVH LVZRXQGXSDQLQMXUHGSHUVRQRUVXUYLYRU KDVD GLUHFWULJKWWRFRPSHQVDWLRQRIGDPDJHDJDLQVWWKHLQVXUDQFHFRPSDQ\WRWKHVDPHH[WHQWDVWKHHPSOR\HU ZRXOGKDYHEHHQREOLJHGWRFRPSHQVDWHVXFKGDPDJH
7KH VFRSH H[WHQW WR ZKLFK WKH HPSOR\HU LV FRYHUHG E\ VWDWXWRU\ LQVXUDQFH H[WLQJXLVKHV WKLV HPSOR\HU VGXW\ZLWKLQWKHVDPHVFRSH WRFRQFOXGHFRQWUDFWXDOLQVXUDQFHFRYHUXQGHURWKHUSURYLVLRQV
6HFWLRQ
7KHSURYLVLRQVRIWKLV&KDSWHUVKDOODOVRDSSO\WRLQGLYLGXDOVKROGLQJSXEOLFRIILFHDQGWRWKHH[WHQW VWLSXODWHGLQDJRYHUQPHQWGHFUHHWRGLVDEOHGLQGLYLGXDOVZKRDUHQRWLQDQ\HPSOR\PHQWUHODWLRQVKLSDQG ZKRVHYRFDWLRQDOWUDLQLQJWDNHVSODFHDFFRUGLQJWRRWKHUVWDWXWRU\SURYLVLRQVWRVWXGHQWVLQEDVLFVFKRROV EDVLFDUWVFKRROVDSSUHQWLFHVFKRROVYRFDWLRQDOVHFRQGDU\VFKRROVDQGVSHFLDOVFKRROVKLJKHUYRFDWLRQDO VFKRROV XQLYHUVLW\OHYHO VWXGHQWV WR PHPEHUV RI YROXQWDU\ ILUH EULJDGHV DQG PLQLQJ UHVFXH FRUSV WR LQGLYLGXDOV ZKR DW WKH UHTXHVW RI D VWDWH DGPLQLVWUDWLYH DXWKRULW\ D ORFDO JRYHUQPHQW DXWKRULW\ RU WKH FRPPDQGHURIDQRSHUDWLRQRUZLWKKLVNQRZOHGJH JLYHSHUVRQDODVVLVWDQFHGXULQJDQRSHUDWLRQDJDLQVW DQDWXUDOGLVDVWHURUZKRLQWKHDIWHUPDWKRIVXFKDGLVDVWHUDQGDVSDUWRIRSHUDWLRQVRUJDQL]HGE\ORFDO JRYHUQPHQWDXWKRULWLHVYROXQWDULO\JLYHDVVLVWDQFHE\SHUIRUPLQJDYLWDOWDVNLQWKHSXEOLFLQWHUHVWWKHVH SURYLVLRQVVKDOODOVRDSSO\WRPHPEHUVRIFRRSHUDWLYHVZKRVXIIHULQMXU\LQWKHFRXUVHRIWKHLUGXWLHVRU DQDJUHHGDFWLYLW\RQEHKDOIRIWKHFRRSHUDWLYHWRZRUNHUVRIWKH5HG&URVVEORRGGRQRUVDQGPHPEHUV RIWKH0RXQWDLQ5HVFXH6HUYLFHWRLQGLYLGXDOVZKRRQUHTXHVWDQGLQDFFRUGDQFHZLWKWKHLQVWUXFWLRQV SHUVRQDOO\ DVVLVW UHVFXH RSHUDWLRQV LQ WKH FRXQWU\VLGH DQG ZKR YROXQWDULO\ SURYLGH VRFLDO FDUH VHUYLFHV ZLWKLQ WKH VRFLDO VHFXULW\ V\VWHP DQG WR LQGLYLGXDOV ZKR DUH DVVLJQHG E\ WKHLU HPSOR\HU WR FHUWDLQ IXQFWLRQVRUDFWLYLWLHVZKHQWKH\VXIIHULQMXU\ZKLOHIXOILOOLQJWDVNVUHODWHGWRVXFKIXQFWLRQVRUDFWLYLWLHV
&+$37(5,;
:25.5(/$7('',6387(6 6HFWLRQ
&RXUWVVKDOOFRQVLGHUDQGUXOHRQGLVSXWHVEHWZHHQDQHPSOR\HUDQGDQHPSOR\HHRYHUHQWLWOHPHQWV HQVXLQJIURPDQHPSOR\PHQWUHODWLRQVKLS
6HFWLRQVWR 5HSHDOHG
3$577+5((
6HFWLRQVWR
5HSHDOHG
3$57)285
$*5((0(17621:25.3(5)250('2876,'(2) (03/2<0(175(/$7,216+,36
6HFWLRQ
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
E ZKRVHSHUIRUPDQFHLQDQHPSOR\PHQWUHODWLRQVKLSZRXOGEHVRFLDOO\LQHIILFLHQWRUXQHFRQRPLFIRU WKHHPSOR\HUIRURWKHUUHDVRQV
7KHVH DJUHHPHQWV PD\ EH FRQFOXGHG ZLWK DGROHVFHQWV RQO\ LI WKHLU KHDOWK\ GHYHORSPHQW RU RFFXSDWLRQDOWUDLQLQJLVQRWWKHUHE\SXWDWULVN
6HFWLRQ
2QWKHEDVLVRIFRQFOXGHGDJUHHPHQWVHPSOR\HHVVKDOOLQSDUWLFXODU
D SHUIRUP ZRUN FRQVFLHQWLRXVO\ DQG SURSHUO\ DFFRUGLQJ WR WKHLU VWUHQJWK NQRZOHGJH DQG DELOLW\ DQG DGKHUHWRWKHWHUPVRIWKHDJUHHPHQW
E SHUIRUPWKHZRUNSHUVRQDOO\RUZLWKWKHDVVLVWDQFHRIIDPLO\PHPEHUVVWDWHGLQWKHDJUHHPHQW
F REVHUYH WKH VWDWXWRU\ SURYLVLRQV DSSOLFDEOH WR WKH ZRUN EHLQJ SHUIRUPHG E\ WKHP HVSHFLDOO\ WKH SURYLVLRQV RQ HQVXULQJ VDIHW\ DQG WKH SURWHFWLRQ RI KHDOWK DW ZRUN REVHUYH RWKHU UHJXODWLRQV DSSOLFDEOH WR WKH ZRUN EHLQJ SHUIRUPHG E\WKHPHVSHFLDOO\UHJXODWLRQVIRUHQVXULQJVDIHW\DQGWKH SURWHFWLRQRIKHDOWKDWZRUNZLWKZKLFKWKH\KDYHEHHQGXO\DFTXDLQWHG
G ORRNDIWHUWKHHTXLSPHQWPHDQV HQWUXVWHGWRWKHPDQGJXDUGDQGSURWHFWWKHSURSHUW\RIWKHHPSOR\HU DJDLQVWGDPDJHORVVGHVWUXFWLRQDQGPLVXVH
2QWKHEDVLVRIFRQFOXGHGDJUHHPHQWVHPSOR\HUVVKDOOLQSDUWLFXODU
D FUHDWHVXLWDEOHZRUNLQJFRQGLWLRQVIRUHPSOR\HHVZKLFKHQVXUHWKHSURSHUDQGVDIHSHUIRUPDQFHRI ZRUNDQGHVSHFLDOO\SURYLGHWKHQHFHVVDU\EDVLFHTXLSPHQWPDWHULDOVWRROVDQGSHUVRQDOSURWHFWLRQ ZRUNLQJDLGV
E DFTXDLQWHPSOR\HHVZLWKWKHVWDWXWRU\SURYLVLRQVDQGRWKHUUHJXODWLRQVDSSOLFDEOHWRWKHZRUNEHLQJ FDUULHGRXWE\WKHPHVSHFLDOO\WKHVWDWXWRU\SURYLVLRQVDQGRWKHUUHJXODWLRQVHQVXULQJVDIHW\DQGWKH SURWHFWLRQRIKHDOWKDWZRUN
F DGHTXDWHO\VXSHUYLVHWKHSURSHUSHUIRUPDQFHRIZRUN
G LQ H[FKDQJH IRU WKHLU ZRUN SURYLGH HPSOR\HHV ZLWK WKH DJUHHG UHPXQHUDWLRQ ZKLFK PD\ QRW EH LQFRQVLVWHQWZLWKWKHODERXUSURYLVLRQV
H REVHUYH RWKHU WHUPV RI WKH DJUHHPHQW KRZHYHU DQ HPSOR\HH V RWKHU SRVVLEOH HQWLWOHPHQWV RU SHUTXLVLWHVZKLFKDUHWRKLVEHQHILWPD\QRWEHDJUHHGVRWKDWWKH\DUHPRUHIDYRXUDEOHWKDQVLPLODU HQWLWOHPHQWVDQGSHUTXLVLWHVHQVXLQJIURPDQHPSOR\PHQWUHODWLRQVKLS
7KH SURKLELWLRQ RQ FHUWDLQ NLQGV RI ZRUN IRU ZRPHQ DQG DGROHVFHQWV VKDOO DOVR DSSO\ WR ZRUN SHUIRUPHGRQWKHEDVLVRIWKHVHDJUHHPHQWV
6HFWLRQ
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
7KH HPSOR\HU VKDOO EH OLDEOH WR KLV HPSOR\HH IRU GDPDJH ZKLFK WKH HPSOR\HH VXIIHUV ZKLOH SHUIRUPLQJZRUNXQGHUWKHFRQFOXGHGDJUHHPHQWRULQGLUHFWFRQQHFWLRQWKHUHZLWKWRWKHVDPHH[WHQWDV KH LV OLDEOH WR HPSOR\HHV ZKR DUH LQ DQ HPSOR\PHQW UHODWLRQVKLS WKH HPSOR\HU VKDOO EH OLDEOH WR WKH HPSOR\HH VIDPLO\PHPEHUVLQDFFRUGDQFHZLWKWKH&LYLO&RGH
6HFWLRQ
'LVSXWHVRYHUWKHVHDJUHHPHQWVVKDOOEHGHDOWZLWKLQWKHVDPHPDQQHUDVGLVSXWHVHQVXLQJIURPDQ HPSOR\PHQWUHODWLRQVKLS
6HFWLRQ
$JUHHPHQWVIRUWKH3HUIRUPDQFHRID:RUN$VVLJQPHQW
$QHPSOR\HUPD\FRQFOXGHDQDJUHHPHQWIRUWKHSHUIRUPDQFHRIDZRUNDVVLJQPHQWRUDQDJUHHPHQW RQWKHSHUIRUPDQFHRIZRUNLQ&]HFK³GRKRGDRSURYHGHQtSUiFH´ LIWKHH[SHFWHGGXUDWLRQRIWKHSURMHFW ZRUNWDVN ZKLFKLVWKHVXEMHFWRIWKHDJUHHPHQWLVQRORQJHUWKDQKRXUV7KHSHULRGRIWLPHVSHQWE\ WKHHPSOR\HHRQWKHSHUIRUPDQFHRIDQRWKHUZRUNDVVLJQPHQWIRUWKHHPSOR\HULQWKHVDPHFDOHQGDU\HDU VKDOODOVREHFRXQWHGZLWKUHJDUGWRWKHVDLGOLPLW$JRYHUQPHQWGHFUHHPD\GHWHUPLQHH[FHSWLRQDOFDVHV LQ ZKLFK WKH SHULRG RI WLPH RI WKH SHUIRUPDQFH RI DQRWKHU ZRUN DVVLJQPHQW VKDOO QRW EH FRXQWHG ZLWK UHJDUGWRWKHVDLGOLPLW
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
7KH ZRUN DVVLJQPHQW PXVW EH FDUULHG RXW ZLWKLQ WKH DJUHHG WLPH RWKHUZLVH WKH HPSOR\HU PD\ ZLWKGUDZIURPWKHDJUHHPHQW$QHPSOR\HHPD\ZLWKGUDZIURPWKHDJUHHPHQWLIKHFDQQRWFDUU\RXWWKH ZRUNDVVLJQPHQWEHFDXVHWKHHPSOR\HUGLGQRWFUHDWHWKHDJUHHGZRUNLQJFRQGLWLRQVWKHHPSOR\HUVKDOO
FRPSHQVDWHKLPIRUDQ\GDPDJHFDXVHGDVDUHVXOWRIWKLV
5HPXQHUDWLRQIRUSHUIRUPDQFHRIWKHZRUNDVVLJQPHQWVKDOOEHSD\DEOHDIWHUFRPSOHWLRQDQGGHOLYHU\ RIWKHZRUN7KHSDUWLHVPD\DJUHHEHWZHHQWKHPVHOYHVWKDWDSDUWRIWKHUHPXQHUDWLRQZLOOEHSD\DEOH DIWHUDFHUWDLQSDUWRIWKHZRUNDVVLJQPHQWLVIXOILOOHG$IWHUGLVFXVVLQJLWZLWKWKHHPSOR\HHWKHHPSOR\HU PD\UHGXFHWKHDPRXQWRIUHPXQHUDWLRQLIWKHZRUNSHUIRUPHGGRHVQRWFRUUHVSRQGWRWKHDJUHHGWHUPV
6KRXOG WKH HPSOR\HH GLH EHIRUH WKH ZRUN DVVLJQPHQW LV FRPSOHWHG WKH HQWLWOHPHQW WR UHDVRQDEOH UHPXQHUDWLRQIRUWKHZRUNSHUIRUPHGZKHQWKHHPSOR\HUFDQPDNHXVHRIWKHUHVXOWVRIWKHZRUNDQGWR UHLPEXUVHPHQW RI H[SHQVHV UHDVRQDEO\ LQFXUUHG VKDOOQRWWHUPLQDWHEXWEHFRPHDSDUWRIWKHGHFHDVHG SHUVRQ VHVWDWH
$JUHHPHQWVRQ:RUNLQJ$FWLYLW\ 6HFWLRQ
$QDJUHHPHQWRQZRUNLQJDFWLYLW\³GRKRGDRSUDFRYQtþLQQRVWL´ PD\EHFRQFOXGHGE\DQHPSOR\HU DQGDQLQGLYLGXDOHYHQLIWKHH[SHFWHGH[WHQWGXUDWLRQ RIWKHZRUNGRHVQRWH[FHHGKRXUV
+RZHYHUZRUNZKRVHDYHUDJHGXUDWLRQH[FHHGVRQHKDOIRIWKHSUHVFULEHGZHHNO\ZRUNLQJWLPHPD\ QRW EH SHUIRUPHG RQ WKH EDVLV RI DQ DJUHHPHQW RQ ZRUNLQJ DFWLYLW\ DQ\ SRVVLEOH VWDQGE\ ZRUNLQJ UHDGLQHVV IRU ZKLFK WKH HPSOR\HH LV QRW HQWLWOHG WR UHPXQHUDWLRQ DQG VWDQGE\ DW KRPH VKDOO QRW EH LQFOXGHG LQ WKLV SHULRG RI WLPH $ JRYHUQPHQW GHFUHH PD\ GHWHUPLQH H[FHSWLRQDO FDVHV LQ ZKLFK LW LV SRVVLEOHRQWKHEDVLVRIDQDJUHHPHQWRQZRUNLQJDFWLYLW\WRSHUIRUPZRUNLQH[FHVVRIWKHZRUNLQJWLPH VWDWHGLQWKHSUHFHGLQJVHQWHQFH
2EVHUYDQFH RI WKH DJUHHG DQG PD[LPXP SHUPLVVLEOH OHQJWK RI ZRUNLQJ WLPH XQGHU WKH SUHFHGLQJ VXEVHFWLRQ VKDOO EH FRQVLGHUHG RQ WKH EDVLV RI WKH ZKROH SHULRG RI WLPH IRU ZKLFK WKH DJUHHPHQW ZDV FRQFOXGHG>VHFWLRQ @EXWIRUQRORQJHUWKDQDSHULRGRIPRQWKV
6HFWLRQ
7KHHPSOR\HUVKDOOFRQFOXGHDQDJUHHPHQWRQZRUNLQJDFWLYLW\LQZULWLQJRWKHUZLVHLWVKDOOEHYRLG 7KHDJUHHGZRUNWKHDJUHHGUHPXQHUDWLRQIRUSHUIRUPDQFHRIWKHZRUNDQGWKHDJUHHGZRUNLQJWLPHDQG SHULRGRIWLPHIRUZKLFKWKHDJUHHPHQWLVFRQFOXGHGPXVWEHVWDWHGLQWKHDJUHHPHQW7KHHPSOR\HUVKDOO JLYHWKHHPSOR\HHRQHFRS\RIWKHDJUHHPHQWRQZRUNLQJDFWLYLW\3ULRUWRFRQFOXGLQJDQDJUHHPHQWRQ ZRUNLQJDFWLYLW\WKHHPSOR\HUVKDOOSURFHHGSXUVXDQWWRVHFWLRQ DQG
$Q DJUHHPHQW RQ ZRUNLQJ DFWLYLW\ VKDOO EH FRQFOXGHG HLWKHU IRU D IL[HGWHUP RU IRU DQ LQGHILQLWH SHULRG 7KH PDQQHU RI WHUPLQDWLRQ PD\ EH DJUHHG LQ WKH DJUHHPHQW ,W LV RQO\ SRVVLEOH WR DJUHH WR WKH LPPHGLDWHWHUPLQDWLRQRIWKHDJUHHPHQWLQWKHVDPHFLUFXPVWDQFHVLQZKLFKDQHPSOR\PHQWUHODWLRQVKLS PD\ EH LPPHGLDWHO\ WHUPLQDWHG ,I WKH PDQQHU RI WHUPLQDWLRQ LV QRW LPSOLHG E\ WKH ZRUGLQJ RI WKH DJUHHPHQW LW PD\ EH WHUPLQDWHG E\ WKH SDUWLHV DV RI DQ DJUHHG GD\ DQG XQLODWHUDOO\ VLPSO\ E\ JLYLQJ QRWLFHRQDQ\JURXQGVZKDWVRHYHURURQQRVWDWHGJURXQGVZLWKDGD\QRWLFHSHULRGEHJLQQLQJRQWKH GD\ZKHQWKHZULWWHQQRWLFHRIWHUPLQDWLRQLVGHOLYHUHGWRWKHRWKHUSDUW\
6HFWLRQ 5HSHDOHG
6HFWLRQD
5HPXQHUDWLRQ IRU ZRUN SHUIRUPHGVKDOOEHGXHRQWKHSD\GD\GHVLJQDWHGE\WKHHPSOR\HUIRUWKH SD\PHQW RI ZDJHV VHFWLRQ DQG LI D OXPSVXP SD\PHQW RI UHPXQHUDWLRQ ZDV DJUHHG LW VKDOO EH SD\DEOHRQO\DIWHUSHUIRUPDQFHRIWKHZKROHZRUNWDVNRQWKHQH[WSD\GD\DIWHUFRPSOHWLRQDQGGHOLYHU\ RIWKHZRUN7KHSDUWLHVPD\DJUHHEHWZHHQWKHPVHOYHVGLIIHUHQWO\RQWKHGXHGDWHRIUHPXQHUDWLRQ
6HFWLRQE
7KHDPRXQWRIUHPXQHUDWLRQDQGWKHWHUPVRQZKLFKLWLVSURYLGHGWDNLQJLQWRDFFRXQWWKHW\SHDQG PDQQHURIWKHZRUNRUDFWLYLWLHVSHUIRUPHGVKDOOEHDJUHHGEHWZHHQWKHHPSOR\HUDQGWKHHPSOR\HHLQ WKHLU DJUHHPHQWV IRU WKH SHUIRUPDQFH RI D ZRUN DVVLJQPHQW RU DJUHHPHQW RQ ZRUNLQJ DFWLYLW\ :KHQ QHJRWLDWLQJWKHDPRXQWRIUHPXQHUDWLRQWKHHPSOR\HUVKDOOREVHUYHWKHSURYLVLRQVRIVHFWLRQV DQG DQG WR
,IWKHWHUPVRIDQDJUHHPHQWIRUWKHSHUIRUPDQFHRIDZRUNDVVLJQPHQWRUDQDJUHHPHQWRQZRUNLQJ DFWLYLW\DOVRFRYHUUHLPEXUVHPHQWRIH[SHQVHVLQFXUUHGLQFRQQHFWLRQZLWKSHUIRUPDQFHRIWKHZRUNZKLFK LV JRYHUQHG E\ RWKHU VWDWXWRU\ SURYLVLRQV 1RWH WKH\ VKDOO DOZD\V EH DJUHHG VHSDUDWHO\ IURP WKH DJUHHPHQWRQUHPXQHUDWLRQIRUWKHZRUNSHUIRUPHG
3$57),9(
-2,173529,6,216 &+$37(5,
$&76,1/$: 6HFWLRQ
$QDFWLQODZDQHPSOR\PHQWFRQWUDFWQRWLFHRIWHUPLQDWLRQDQDJUHHPHQWRQGDPDJHVHWF LVD PDQLIHVWDWLRQ RI ZLOO LQWHQWLRQ DLPHG DW WKH FUHDWLRQ PRGLILFDWLRQ RU WHUPLQDWLRQ RI WKRVH ULJKWV RU REOLJDWLRQVZKLFKWKHVWDWXWRU\SURYLVLRQVDWWDFKWRVXFKPDQLIHVWDWLRQV
$PDQLIHVWDWLRQRIZLOOFDQEHSHUIRUPHGHLWKHUE\DQDFWRUE\DQRPLVVLRQLWPD\EHSHUIRUPHG H[SOLFLWO\RULQDQRWKHUPDQQHUZKLFKOHDYHVQRGRXEWDVWRZKDWWKHSDUW\LQWHQGHGWRH[SUHVV,IDSHUVRQ ZKRFDQQRWUHDGRUZULWHZLVKHVWRSHUIRUPDQDFWLQODZLQZULWLQJDQRIILFLDOUHFRUGLVUHTXLUHGRUD UHFRUGDFFRPSDQLHGE\DGRFXPHQWVLJQHGE\WZRVLPXOWDQHRXVO\SUHVHQWRIILFLDOVRIWKHFRPSHWHQWWUDGH XQLRQ RUJDQL]DWLRQ RUJDQ ERG\ FRQILUPLQJ WKDW WKH WKH RIILFLDO UHFRUG FRUUHVSRQGV WR WKH SHUVRQ V H[SUHVVHGLQWHQWLRQ
7KHPDQLIHVWDWLRQRIZLOOVKDOOEHLQWHUSUHWHGWDNLQJLQWRDFFRXQWWKHFLUFXPVWDQFHVXQGHUZKLFKLW ZDVSHUIRUPHGLQDFFRUGDQFHZLWKWKHUXOHVRIGHFHQF\DQGFLYLFFRH[LVWHQFH
6HFWLRQ
7KHFUHDWLRQPRGLILFDWLRQRUWHUPLQDWLRQRIDULJKWRUREOLJDWLRQPD\EHFRQGLWLRQDO$QLPSRVVLEOH FRQGLWLRQDWWDFKHGWRWKHWHUPLQDWLRQRIDULJKWRUREOLJDWLRQVKDOOQRWEHWDNHQLQWRFRQVLGHUDWLRQ
,IDSDUW\ZKREHQHILWVIURPQRQSHUIRUPDQFHRIDFRQGLWLRQGHOLEHUDWHO\IUXVWUDWHVLWVSHUIRUPDQFH WKHDFWLQODZVKDOOEHFRPHXQFRQGLWLRQDO
3HUIRUPDQFHRIDFRQGLWLRQVKDOOQRWEHWDNHQLQWRFRQVLGHUDWLRQLILWLVGHOLEHUDWHO\EURXJKWDERXWE\D SDUW\ZKRKDVQRULJKWWRGRVRDQGWRZKRPLWVSHUIRUPDQFHLVDGYDQWDJHRXV
$QDFWLQODZVKDOOEHYRLGLI
9RLG$FWVLQ/DZ 6HFWLRQ
D LWVFRQWHQWVRUSXUSRVHFRQWUDGLFWVRUFLUFXPYHQWVWKHODZRULILWFRQIOLFWVZLWKWKHLQWHUHVWVRIVRFLHW\
E LWZDVQRWXQGHUWDNHQIUHHO\DQGLQHDUQHVWRULQDGHILQLWHRULQWHOOLJLEOHPDQQHU
F DVDUHVXOWDQHPSOR\HHZDLYHVKLVULJKWVLQDGYDQFH
G LWLVXQGHUWDNHQE\DQHPSOR\HHZKRVHPHQWDOVWDWHUHQGHUVKLPLQFDSDEOHRISHUIRUPLQJVXFKDQDFW LQODZ
H WKHSHUVRQZKRXQGHUWRRNLWODFNHGWKHFDSDFLW\WRSHUIRUPDFWVLQODZ
$FWVLQODZZKLFKWKHFRPSHWHQWERG\KDVQRWDSSURYHGDVSUHVFULEHGRUZKLFKZHUHQRWXQGHUWDNHQ LQWKHIRUPVWLSXODWHGE\WKLV&RGHDUHYRLGRQO\LIVRH[SOLFLWO\VWDWHGLQWKLV&RGHRULQDQRWKHUODZ,I WKLV&RGHRQO\UHTXLUHVWKDWDQDFWLQODZEHGLVFXVVHGZLWKWKHFRPSHWHQWERG\WKHDFWLQODZUHPDLQV YDOLGHYHQLILWZDVQRWGLVFXVVHGZLWKVXFKERG\
,IWKHJURXQGVIRULQYDOLGLW\QXOOLW\ UHODWHRQO\WRSDUWRIDQDFWLQODZRQO\WKLVSDUWVKDOOEHYRLGLI LW GRHV QRW IROORZ IURP WKH QDWXUH RI WKH DFW LQ ODZ LWV WHUPV RU WKH FLUFXPVWDQFHV XQGHUZKLFKLWZDV XQGHUWDNHQWKDWWKLVSDUWPD\QRWEHVHSDUDWHGIURPWKHRWKHUSDUWVRIVXFKDFWLQODZ
6HFWLRQ
,I DQ HPSOR\HH XQIDLUO\ REWDLQV D EHQHILW WR WKH GHWULPHQW RI KLV HPSOR\HU RU WKH HPSOR\HU WR WKH GHWULPHQWRIKLVHPSOR\HHKHPXVWVXUUHQGHULW
8QMXVWHQULFKPHQWLVDPDWHULDOEHQHILWDFTXLUHGWKURXJKDSHUIRUPDQFHZKLFKKDVQROHJDOJURXQGRU LVEDVHGRQDYRLGDFWLQODZ
+RZHYHU DQ HPSOR\HU PD\ RQO\ UHTXHVW DQ HPSOR\HH WR UHIXQG XQMXVWO\ SDLGRXW DPRXQWV LI WKH HPSOR\HHNQHZRUPXVWKDYHNQRZQIURPWKHFLUFXPVWDQFHVWKDWWKHDPRXQWZDVLQFRUUHFWO\GHWHUPLQHG RUSDLGRXWLQHUURUDQGWKLVUHTXHVWPXVWEHPDGHZLWKLQWKUHH\HDUVRIWKHSD\PHQWEHLQJPDGH
7KHLQYDOLGLW\QXOOLW\ RIDQDFWLQODZPD\QRWFDXVHGHWULPHQWWRWKHHPSOR\HHLILWVLQYDOLGLW\ZDV QRW H[FOXVLYHO\ FDXVHG E\ KLP LI WKH HPSOR\HH VXIIHUV GDPDJH DV WKH UHVXOW RI VXFK D YRLG DFW WKH HPSOR\HULVREOLJHGWRFRPSHQVDWHLW
6HFWLRQD 5HSHDOHG
&RQWUDFWV$JUHHPHQWV 6HFWLRQ
$FRQWUDFWDQDJUHHPHQW DJUHHGLQDFFRUGDQFHZLWKWKHUHOHYDQWODERXUSURYLVLRQVVKDOOEHFRQFOXGHG DVVRRQDVWKHSDUWLHVUHDFKDJUHHPHQWRQLWVWHUPV
$QRIIHUSURSRVDO WRFRQFOXGHDFRQWUDFWPXVWEHDFFHSWHGZLWKLQDSHULRGRIWLPHGHVLJQDWHGE\WKH RIIHURU,IWKHSHULRGLVQRWGHVLJQDWHGWKHRIIHUPXVWEHDFFHSWHGLPPHGLDWHO\LIWKHSDUWLHVDUHGLUHFWO\ QHJRWLDWLQJRWKHUZLVHLWPXVWEHDFFHSWHGZLWKRXWXQGXHGHOD\$QRIIHULVDFFHSWHGDWWKHPRPHQWZKHQ LWVDFFHSWDQFHUHDFKHVWKHRIIHURU
$FRQWUDFWVKDOOQRWEHFRQFOXGHGLIWKHRIIHULVDFFHSWHGODWHRULIWKHRWKHUSDUW\UHTXHVWVFKDQJHV VXFKDPDQLIHVWDWLRQLVFRQVLGHUHGWRFRQVWLWXWHDQHZRIIHU
8QWLODQRIIHURUWKHDFFHSWDQFHRILWUHDFKHVWKHRWKHUSDUW\WKHSDUWLHVPD\ZLWKGUDZWKHLURIIHUVRU DFFHSWDQFH
,QRUGHUWRFRQFOXGHDFRQWUDFWLQZULWLQJLWVKDOOEHVXIILFLHQWLIWKHRIIHUDQGWKHDFFHSWDQFHDUHPDGH LQZULWLQJ7KHSDUWLHV RIIHUDQGDFFHSWDQFHVGRQRWKDYHWREHFRQWDLQHGLQWKHVDPHGRFXPHQW
6HFWLRQ
$SDUW\PD\RQO\ZLWKGUDZIURPDFRQWUDFWLIWKLV&RGHVRSURYLGHVRULIWKHSDUWLHVVRDJUHH
:LWKGUDZDOIURPDFRQWUDFWLQYDOLGDWHVLWIURPWKHEHJLQQLQJXQOHVVWKLV&RGHSURYLGHVRWKHUZLVHRU WKHSDUWLHVDJUHHRWKHUZLVH
$SDUW\ZKLFKQHJRWLDWHGDFRQWUDFWRQWKHEDVLVRIDQHUURQHRXVIDFWZKLFKWKHRWKHUSDUW\PXVWKDYH NQRZQDERXWKDVWKHULJKWWRZLWKGUDZIURPWKHFRQWUDFWLIWKHHUURQHRXVIDFWUHODWHVWRDFLUFXPVWDQFH ZLWKRXWZKLFKWKHFRQWUDFWZRXOGQRWKDYHEHHQFRQFOXGHG
,WVKDOORQO\EHSRVVLEOHWRZLWKGUDZIURPDQHPSOR\PHQWFRQWUDFW>VHFWLRQ @LIWKHHPSOR\HHGLG QRWVWDUWZRUNSXUVXDQWWRVXFKFRQWUDFW
&+$37(5,,
6(&85,1*5,*+76$1'2%/,*$7,216(168,1*)520/$%285 5(/$7,216 6HFWLRQ
$QHPSOR\HUFDQVHFXUHVDWLVIDFWLRQRIDQHQWLWOHPHQWULJKW E\DQDJUHHPHQWRQWKHGHGXFWLRQIURP ZDJHVFRQFOXGHGEHWZHHQKLPDQGKLVHPSOR\HHGHGXFWLRQVIURPZDJHVPD\QRWDPRXQWWRPRUHWKDQLQ WKH FDVH RI D ZULW RI H[HFXWLRQ 1RWH 7KHDJUHHPHQWPXVWEHFRQFOXGHGLQZULWLQJRWKHUZLVHLWLV YRLG
7KHSURYLVLRQVRIWKHSUHFHGLQJVXEVHFWLRQVKDOODOVRDSSO\WRRWKHUW\SHVRILQFRPHZKLFKLQWKHFDVH RIDZULWRIH[HFXWLRQPD\EHWUHDWHGLQWKHVDPHZD\DVZDJHV
6HFWLRQ
,I DQ REOLJDWLRQ LV LQFXUUHG E\ DQ HPSOR\HH WR FRPSHQVDWH GDPDJH WR WKLQJV RI YDOXH ZKLFK ZHUH HQWUXVWHGWRKLPDQGZKLFKKHLVREOLJHGWRDFFRXQWIRUDQRWKHULQGLYLGXDOPD\E\DZULWWHQVWDWHPHQW JXDUDQWHHVDWLVIDFWLRQRIWKHHPSOR\HU VFODLPVKRXOGLWQRWEHVDWLVILHGE\WKHHPSOR\HH
$W WKH VXUHW\ V JXDUDQWRU V UHTXHVW WKH HPSOR\HUVKDOOLQIRUPWKHVXUHW\DWDQ\WLPHDQGZLWKRXW XQGXHGHOD\RIWKHDPRXQWRIKLVFODLP 7KHVXUHW\LVREOLJHGWRVDWLVI\WKHHPSOR\HU VFODLPLIWKHHPSOR\HHGLGQRWGRVRHYHQWKRXJKKH
ZDVFDOOHGXSRQWRGRVRLQZULWLQJE\WKHHPSOR\HU
$VXUHW\ZKRVDWLVILHVDQHPSOR\HU VFODLPVKDOOEHHQWLWOHGWRUHTXLUHWKDWWKHHPSOR\HHUHLPEXUVHWKH SD\PHQWZKLFKKHPDGHWRWKHHPSOR\HU
6HFWLRQ
7KHHPSOR\HU VHQWLWOHPHQWWRFRPSHQVDWLRQIRUGDPDJHWRWKLQJVRIYDOXHZKLFKZHUHHQWUXVWHGWRD VSHFLILF HPSOR\HH DQG IRU ZKLFK WKH HPSOR\HH LV DFFRXQWDEOH DQG WKH HPSOR\HU V HQWLWOHPHQW WR FRPSHQVDWLRQRIGDPDJHZKLFKWKHHPSOR\HHZLOIXOO\FDXVHGPD\DOVREHVHFXUHGE\DZULWWHQFRQWUDFW FUHDWLQJDPRUWJDJHRQUHDOHVWDWHRZQHGE\WKHHPSOR\HH
)RU D FRQWUDFW SXUVXDQW WR VXEVHFWLRQ WR EH HIIHFWLYH LW PXVW EH UHJLVWHUHG LQ WKH 5HDO (VWDWH &DGDVWUH/DQG5HJLVWU\ 7KHPRUWJDJHVKDOOEHHVWDEOLVKHGRQWKHGD\LWLVUHJLVWHUHGLQWKH5HDO(VWDWH &DGDVWUH7KHSURFHHGLQJVRQUHJLVWUDWLRQVKDOOFRPPHQFHRQWKHEDVLVRIDSHWLWLRQILOHGE\WKHHPSOR\HU
$VORQJDVWKHPRUWJDJHHQGXUHVWUDQVIHURIWKHUHDOHVWDWHZLWKRXWWKHHPSOR\HU VFRQVHQWVKDOOEH YRLG
7KH RUGHU DQG PDQQHU RI VDWLVI\LQJ HQWLWOHPHQWV VHFXUHG E\ PRUWJDJH LQ WKH FDVH RI D ZULW RI H[HFXWLRQVKDOOEHVXEMHFWWRWKH&LYLO&RGH
7KHPRUWJDJHRQWKHUHDOHVWDWHWHUPLQDWHVZKHQWKHHQWLWOHPHQWSXUVXDQWWRVXEVHFWLRQ LVVDWLVILHG
&+$37(5,,,
75$16)(52)5,*+76$1'2%/,*$7,216(168,1*)520/$%285 5(/$7,216
6HFWLRQ
7UDQVIHURIULJKWVDQGREOLJDWLRQVHQVXLQJIURPODERXUUHODWLRQVPD\RQO\RFFXULQWKHFDVHVVWLSXODWHG LQWKLV&RGHRULQRWKHUVWDWXWRU\SURYLVLRQV
,Q WKH HYHQW RI DQ HPSOR\HU V HQWHUSULVH XQGHUWDNLQJ RU LWV SDUW EHLQJ WUDQVIHUUHG WR DQRWKHU HPSOR\HURULIDOORUVRPHRIWKHHPSOR\HU VWDVNVRUDFWLYLWLHVDUHWUDQVIHUUHGWRDQRWKHUHPSOR\HUWKH HPSOR\HHV ULJKWV DQG REOLJDWLRQV HQVXLQJ IURP ODERXU UHODWLRQV VKDOO WUDQVIHU WR WKH IXOO H[WHQW WR WKH HPSOR\HUWDNLQJRYHUWKHHQWHUSULVHLWVSDUWRUWDVNVDFWLYLWLHV )RUWKHVHSXUSRVHV³WKHHPSOR\HU VWDVNV DQGDFWLYLWLHV´VKDOOLQSDUWLFXODUPHDQWDVNVUHODWLQJWRRXWSXWRUVHUYLFHVDQGVLPLODUDFWLYLWLHVZKLFKDUH SHUIRUPHGE\DOHJDOHQWLW\RUDQLQGLYLGXDOLQKLVLWVRZQQDPHDQGDWKLVLWVRZQOLDELOLW\LQIDFLOLWLHVRU SUHPLVHVGHWHUPLQHGIRUWKHLUSHUIRUPDQFHH[HFXWLRQ LQDFFRUGDQFHZLWKRWKHUVWDWXWRU\SURYLVLRQV³7KH HPSOR\HUWDNLQJRYHUWKHHQWHUSULVH´RU³WKHWDNLQJRYHUHPSOR\HU´ VKDOOPHDQLUUHVSHFWLYHRIWKHOHJDO JURXQG IRU VXFK WUDQVIHU DQG ZKHWKHU RZQHUVKLS ULJKWV DUH WUDQVIHUUHG WKH OHJDO HQWLW\ RU LQGLYLGXDO UHJDUGHG DV EHLQJ FRPSHWHQW DV DQ HPSOR\HU VHFWLRQV DQG D WR FRQWLQXH IXOILOPHQW RI WKH KLWKHUWR HPSOR\HU VWDVNVRUDFWLYLWLHVRUVLPLODUDFWLYLWLHV
7KH KLWKHUWR HPSOR\HU V ULJKWV DQG REOLJDWLRQV WR KLV HPSOR\HHV ZKRVH ODERXU UHODWLRQV ZHUH WHUPLQDWHGEHIRUHRURQWKHGD\RIWKHWUDQVIHUVKDOOUHPDLQXQDIIHFWHGXQOHVVRWKHUVWDWXWRU\SURYLVLRQV VWLSXODWHRWKHUZLVH
6HFWLRQ
%HIRUH WKH WUDQVIHU WUDQVIHUDQFH WUDQVPLVVLRQ RI ULJKWV DQG REOLJDWLRQV HQVXLQJ IURP ODERXU UHODWLRQV IURP WKH KLWKHUWR HPSOR\HU WR WKH HPSOR\HU WDNLQJ RYHU WKH HQWHUSULVH RFFXUV WKH KLWKHUWR HPSOR\HUDQGWKHHPSOR\HUWDNLQJRYHUVKDOOLQIRUPWKHFRPSHWHQWWUDGHXQLRQRUJDQL]DWLRQRUJDQERG\ RUWKHZRUNVFRXQFLORIWKLVIDFWDQGFRQVXOWLWLQRUGHUWRDJUHHRQWKHSURSRVHG GDWHRIWKHWUDQVIHUWKH JURXQGV IRU LW LWV OHJDO HFRQRPLF DQG VRFLDO FRQVHTXHQFHV DQG WKH HQYLVDJHG PHDVXUHV UHODWLQJ WR HPSOR\HHV
,IQRWUDGHXQLRQRUJDQL]DWLRQRUJDQERG\ RUZRUNVFRXQFLOKDVEHHQHVWDEOLVKHGDWWKHHPSOR\HU V HQWHUSULVH RU LI LW LV QRW IXQFWLRQLQJ WKH KLWKHUWR HPSOR\HU DQG WKH HPSOR\HU WDNLQJ RYHU VKDOO GLUHFWO\ LQIRUP WKH HPSOR\HHV ZKR ZLOO EH DIIHFWHG E\ WKH WUDQVIHU DQG GLVFXVV ZLWK WKHP WKH IDFWV SXUVXDQW WR VXEVHFWLRQ
6HFWLRQ
,IFORVXUHRIWKHSUHVHQWHPSOR\HU VHQWLW\LVEURXJKWDERXWE\LWVGLYLVLRQWKHRUJDQERG\ ZKLFKKDV GHFLGHG WR GLYLGH LW VKDOO DOVR GHWHUPLQH ZKLFK RI WKH QHZO\FRQVWLWXWHG HPSOR\HUV XQGHUWDNLQJV HQWHUSULVHV VKDOOWDNHRYHUWKHKLWKHUWRHPSOR\HU VULJKWVDQGREOLJDWLRQVHQVXLQJIURPODERXUUHODWLRQV
,I WKH HPSOR\HU V HQWHUSULVH LV ZRXQG XS WKH RUJDQ ERG\ ZKLFK KDV GHFLGHG WR ZLQG LW XS VKDOO GHWHUPLQH ZKLFK HPSOR\HU VKDOO VDWLVI\ WKH HQWLWOHPHQWV RI HPSOR\HHV RI WKH ZRXQGXS HPSOR\HU V HQWHUSULVHXQGHUWDNLQJ RUZKRDVWKHFDVHPD\EHVKDOOFODLPHQWLWOHPHQWVRIWKHZRXQGXSHPSOR\HU V HQWHUSULVH XQGHUWDNLQJ ,I WKH ZLQGLQJXS LV DVVRFLDWHG ZLWK OLTXLGDWLRQ WKH SURFHGXUH XQGHU RWKHU VWDWXWRU\SURYLVLRQV1RWH VKDOOEHIROORZHG
,IDWUDQVIHUWUDQVIHUHQFH RIHPSOR\HUXQGHUVHFWLRQRFFXUVRQH[SLU\RIWKHSHULRGIRUZKLFK VXFKHPSOR\HUXQGHUWDNLQJ ZDVHVWDEOLVKHGRURQIXOILOPHQWRIWKHSXUSRVHVIRUZKLFKWKHHPSOR\HUZDV HVWDEOLVKHGDQGLIWKLVHPSOR\HULVGLUHFWHGE\DVXSHULRURUJDQ>DXWKRULW\VHFWLRQ @WKHVXSHULRU RUJDQDXWKRULW\ VKDOOGHWHUPLQHWKHHPSOR\HUWRZKRPWKHULJKWVDQGREOLJDWLRQVHQVXLQJIURPODERXU UHODWLRQV VKDOOWUDQVIHU
6HFWLRQD
8SRQWKHGHDWKRIDQHPSOR\HUZKRLVDQLQGLYLGXDOWKHULJKWVDQGREOLJDWLRQVHQVXLQJIURPODERXU UHODWLRQVVKDOOWUDQVIHUWRKLVKHLUV
6HFWLRQE
,IRWKHUVWDWXWRU\SURYLVLRQV1RWH VWLSXODWHWKDWDQHVWDEOLVKPHQWEHORQJLQJWRWKH6WDWHLHDQ RUJDQL]DWLRQDO FRPSRQHQW RI WKH 6WDWH LV WR EH GLVVROYHG RQ LWV PHUJHU RU FRQVROLGDWLRQ ZLWK DQRWKHU HVWDEOLVKPHQW EHORQJLQJ WR WKH VWDWH LH DQRWKHU RUJDQL]DWLRQDO FRPSRQHQW RI WKH 6WDWH DOO ULJKWV DQG REOLJDWLRQVZKLFKHQVXHIURPODERXUUHODWLRQVVKDOOWUDQVIHUWRWKHWDNLQJRYHUHVWDEOLVKPHQW
,IRWKHUVWDWXWRU\SURYLVLRQVVWLSXODWHWKDWDQHVWDEOLVKPHQWEHORQJLQJWRWKH6WDWHLVWREHGLVVROYHGRQ WKH HVWDEOLVKPHQW V GLYLVLRQ ULJKWV DQG REOLJDWLRQV HQVXLQJ IURP ODERXU UHODWLRQV VKDOO WUDQVIHU WR WKH QHZO\ FRQVWLWXWHG VWDWHRZQHG HVWDEOLVKPHQWV RUJDQL]DWLRQDO FRPSRQHQWV 2WKHU VWDWXWRU\ SURYLVLRQV VKDOO GHWHUPLQH ZKLFK RI WKH 6WDWH V QHZO\ FRQVWLWXWHG HVWDEOLVKPHQWV VKDOO WDNH RYHU WKH ULJKWV DQG REOLJDWLRQVHQVXLQJIURPODERXUUHODWLRQVWHUPLQDWHGEHIRUHWKHGLYLVLRQRIWKHRULJLQDO HVWDEOLVKPHQW
,I RWKHU VWDWXWRU\ SURYLVLRQV VWLSXODWH WKDW D VWDWHRZQHG HVWDEOLVKPHQW RUJDQL]DWLRQDO FRPSRQHQW VKDOO EH FRQVWLWXWHG IRU D IL[HG WHUP WKH VWDWXWRU\ SURYLVLRQV VKDOO DOVR GHWHUPLQH ZKLFK HVWDEOLVKPHQW RUJDQL]DWLRQDOFRPSRQHQW VKDOOWDNHRYHUWKHULJKWVDQGREOLJDWLRQVHQVXLQJIURPODERXUUHODWLRQVXSRQ GLVVROXWLRQ RI WKH RULJLQDO HVWDEOLVKPHQW ZKHQ WKH IL[HG WHUP IRU LWV H[LVWHQFH H[SLUHV ,I DQ
HVWDEOLVKPHQWZKLFKE\GHFLVLRQRILWVIRXQGHULVWREHGLVVROYHGRQH[SLU\RIWKHIL[HGWHUPIRUZKLFKLW ZDV FRQVWLWXWHG DOO ULJKWV DQG REOLJDWLRQV HQVXLQJ IURP ODERXU UHODWLRQV VKDOO WUDQVIHU WR WKH IRXQGHU XQOHVVWKHIRXQGHUGHFLGHGWKDWVXFKULJKWVDQGREOLJDWLRQVVKRXOGEHWUDQVIHUUHGWRDQRWKHUVWDWHRZQHG HVWDEOLVKPHQWIRXQGHGE\WKHVDPHIRXQGHU
6HFWLRQF
,I WKH VWDWXWRU\ SURYLVLRQV 1RWH VWLSXODWH WKDW D SDUW RI D VWDWHRZQHG HVWDEOLVKPHQW RUJDQL]DWLRQDO FRPSRQHQW LV WR EH WUDQVIHUUHG WR DQRWKHU VWDWHRZQHG HVWDEOLVKPHQW ULJKWV DQG REOLJDWLRQV HQVXLQJ IURP ODERXU UHODWLRQV ZKLFK UHODWH WR VXFK SDUW VKDOO WUDQVIHU WR WKH WDNLQJRYHU HVWDEOLVKPHQW,IWKHIRXQGHURIDVWDWHRZQHGHVWDEOLVKPHQWRUJDQL]DWLRQDOFRPSRQHQW GHFLGHVWRDPHQG WKH HVWDEOLVKPHQW V IRXQGLQJ GHHG DQG WUDQVIHU D SDUW RI WKH HVWDEOLVKPHQW WR DQRWKHU VWDWHRZQHG HVWDEOLVKPHQW ULJKWV DQG REOLJDWLRQV ZKLFK HQVXH IURP ODERXU UHODWLRQV DW WKH VDLG SDUW RI WKH HVWDEOLVKPHQWVKDOOWUDQVIHUWRWKHWDNLQJRYHUHVWDEOLVKPHQW
,IULJKWVDQGREOLJDWLRQVZKLFKHQVXHIURPWKHODERXUUHODWLRQVRIHPSOR\HHVDWWKHSDUWRIDVWDWH RZQHGHVWDEOLVKPHQWEHLQJWUDQVIHUUHGSXUVXDQWWRVXEVHFWLRQ ZHUHWHUPLQDWHGEHIRUHWKHWUDQVIHUWKH ULJKWVDQGREOLJDWLRQVVKDOOEHH[HUFLVHGE\WKHH[LVWLQJHVWDEOLVKPHQW
6HFWLRQG
,I RWKHU VWDWXWRU\ SURYLVLRQV 1RWH VWLSXODWH WKDW D VWDWHRZQHG HVWDEOLVKPHQW RUJDQL]DWLRQDO FRPSRQHQW VKDOO EH ZRXQG XS WKHVH VWDWXWRU\ SURYLVLRQV VKDOO DOVR GHWHUPLQH WKH VWDWHRZQHG HVWDEOLVKPHQWWRZKLFKULJKWVDQGREOLJDWLRQVHQVXLQJIURPODERXUUHODWLRQVDWWKHZRXQGXSHVWDEOLVKPHQW VKDOO WUDQVIHU DQG ZKLFK VWDWHRZQHG HVWDEOLVKPHQW VKDOO VDWLVI\ WKH HQWLWOHPHQWV RI HPSOR\HHV RI WKH ZRXQGXSHVWDEOLVKPHQWRUDVWKHFDVHPD\EHFODLPHQWLWOHPHQWVDJDLQVWWKHHPSOR\HHV
,I D VWDWHRZQHG HVWDEOLVKPHQW RUJDQL]DWLRQDO FRPSRQHQW LV ZRXQG XS E\ LWV IRXQGHU V GHFLVLRQ ULJKWVDQGREOLJDWLRQVHQVXLQJIURPODERXUUHODWLRQVVKDOOWUDQVIHUIURPWKHZRXQGXSHVWDEOLVKPHQWWRWKH IRXQGHUXQOHVVWKHIRXQGHUGHFLGHVWKDWVXFKULJKWVDQGREOLJDWLRQVVKDOOWUDQVIHUWRDQRWKHUVWDWHRZQHG HVWDEOLVKPHQWIRXQGHGE\WKHVDPHIRXQGHU
&+$37(5,9
',6&+$5*(2)5,*+76$1''87,(6(168,1*)520/$%285 5(/$7,216 6DWLVIDFWLRQRI(QWLWOHPHQWV 6HFWLRQ
$QHQWLWOHPHQWLVGLVFKDUJHGZKHQLWLVVDWLVILHG
$QHQWLWOHPHQWPXVWEHGXO\DQGWLPHO\VDWLVILHG
6HFWLRQ
$QHQWLWOHPHQWPXVWEHVDWLVILHGDWDSODFHIL[HGE\WKLV&RGHRUE\DJUHHPHQWRIWKHSDUWLHV,IWKH SODFHRISHUIRUPDQFHLVQRWIL[HGLQWKLVZD\LWVKDOOEHWKHKRPHDGGUHVVRUVHDWRIWKHSHUVRQZKRVH HQWLWOHPHQWLVWREHVDWLVILHG
,IWKHSHULRGRIWLPHIRUVDWLVIDFWLRQRIDQHQWLWOHPHQWLVQRWVWLSXODWHGLQWKHVWDWXWRU\SURYLVLRQVRU GHWHUPLQHGLQDGHFLVLRQRUDJUHHGWKHHQWLWOHPHQWPXVWEHVDWLVILHGZLWKLQWKUHHGD\VRIWKHGD\ZKHQWKH HQWLWOHGSDUW\UHTXHVWHGLWVVDWLVIDFWLRQ
,I DQ HQWLWOHPHQW LV VDWLVILHG WKURXJK WKH HQWLW\ OLFHQVHG WR SURYLGH SRVWDO VHUYLFHV RU WKURXJK D EDQNLQJLQVWLWXWLRQLWLVVDWLVILHGDWWKHPRPHQWWKHSD\PHQWLVGHOLYHUHG
,IWKHQDWXUHRIWKHSHUIRUPDQFHVRDGPLWVVXFKSHUIRUPDQFHIXOILOPHQW PD\EHSXWLQWRWKHFXVWRG\ RIDFRXUWLIWKHUHDUHLPSRUWDQWUHDVRQVIRUVXFKSURFHGXUHHVSHFLDOO\LIWKHSHUVRQFRQFHUQHGUHIXVHVWR DFFHSWSHUIRUPDQFHIXOILOPHQW RULVQRWSUHVHQW
6HFWLRQ
(PSOR\HHVDQGHPSOR\HUVVKDOODFFHSWHYHQSDUWSHUIRUPDQFH
,I DQ HPSOR\HU RU DQ HPSOR\HH LV WR VDWLVI\ VHYHUDO PRQHWDU\ FODLPV DQG WKH SHUIRUPDQFH LV QRW VXIILFLHQWWRVHWWOHDOORIWKHPWKHFODLPZKLFKLVLQGLFDWHGDVEHLQJVHWWOHGLVUHJDUGHGDVVDWLVILHGLIWKLV LVQRWGRQHWKHFODLPZKLFKPDWXUHGHDUOLHVWVKDOOEHVDWLVILHGILUVW
6HFWLRQ
,IDQHPSOR\HHRIIHUVVDWLVIDFWLRQRIDQHPSOR\HU VFODLPLQLQVWDOPHQWVWKHHPSOR\HUPD\SHUPLWWKH HPSOR\HHWRVDWLVI\WKHFODLPLQDGHTXDWHLQVWDOPHQWV,IWKHHPSOR\HHWKHQSD\VWKHLQVWDOPHQWVZLWKLQWKH DJUHHGWLPHOLPLWVWKHVHLQVWDOPHQWVVKDOOEHFRQVLGHUHGDVWLPHO\DQGGXHSHUIRUPDQFHIXOILOPHQW
,IWKHHPSOR\HHGRHVQRWIXOILOVRPHRIWKHLQVWDOPHQWVZLWKLQWKHIL[HGWLPHOLPLWWKHHPSOR\HUPD\ RQO\ DVN IRU WKH VDWLVIDFWLRQ RI WKH HQWLUH FODLP LI WKLV LV DJUHHG RU GHWHUPLQHG LQ D ILQDO MXGJPHQW +RZHYHUWKHHPSOR\HUPD\RQO\H[HUFLVHWKLVULJKWEHIRUHWKHQH[WLQVWDOPHQWEHFRPHVGXH
,I SHUIRUPDQFH LQ LQVWDOPHQWV ZDV DJUHHG DQG LI WKH HPSOR\HH VXEVHTXHQWO\ ZDQWV WR VDWLVI\ WKH HQWLUHFODLPDWRQFHWKHHPSOR\HULVREOLJHGWRDFFHSWVXFKSHUIRUPDQFHIURPKLP
6HFWLRQ
$SDUW\ZKLFKGRHVQRWWLPHO\DQGGXO\VDWLVI\WKHRWKHUSDUW\ VFODLPHQWLWOHPHQW LVLQGHIDXOW
$SDUW\ZKRVHSHFXQLDU\HQWLWOHPHQWLVQRWWLPHO\DQGGXO\VDWLVILHGPD\DVDUHVXOWRIWKHGHIDXOW GHPDQG LQWHUHVW RQ WKH DUUHDUV DV IL[HG IRU WKH UHODWLRQV XQGHU WKH FLYLO ODZ 1RWH ,I GHIDXOW RQ SHUIRUPDQFHUHODWHVWRDVSHFLILFWKLQJWKHSDUW\ZKLFKIDLOHGWRSHUIRUPWKHREOLJDWLRQWLPHO\DQGGXO\ VKDOOEHOLDEOHIRUORVVRIWKHWKLQJGDPDJHWRLWRULWVGHVWUXFWLRQXQOHVVWKLVGDPDJHZRXOGKDYHRFFXUUHG DQ\ZD\
'HIDXOWGRHVQRWRFFXULIWKHRWKHUSDUW\UHIXVHGWRDFFHSWWLPHO\DQGGXHSHUIRUPDQFHIXOILOPHQW RU LILWUHIXVHGWRSURYLGHWKHFRRSHUDWLRQQHFHVVDU\IRUVDWLVIDFWLRQRILWVFODLPHQWLWOHPHQW ,ISHUIRUPDQFH UHODWHVWRDVSHFLILFWKLQJWKHSDUW\VKDOOEHDUWKHULVNRIORVVRIWKHWKLQJLWVGHVWUXFWLRQRUGDPDJHWRLW
6HFWLRQ
$QHPSOR\HURUDQHPSOR\HHZKRVHFODLPLVVDWLVILHGVKDOOLVVXHDGRFXPHQWFRQILUPLQJWKLVIDFWLI WKHSDUW\VDWLVI\LQJWKHFODLPVRUHTXHVWV
,I WKH SDUW\ ZKRVH FODLP HQWLWOHPHQW LV WR EH VDWLVILHG UHIXVHV DW WKH WLPH RI DFFHSWDQFH RI LWV SHUIRUPDQFH WR SURYLGH VXFK FRQILUPDWLRQ WKH SHUVRQ EHLQJ UHDG\ WR VDWLVI\ WKH FODLP PD\ UHIXVH WR
VDWLVI\LW
6HFWLRQ
([SLU\RI7LPH/LPLWV
5LJKWVDQGREOLJDWLRQVVKDOOWHUPLQDWHXSRQH[SLU\RIWKHSHULRGRIWLPHWRZKLFKWKH\ZHUHOLPLWHG 6HFWLRQ
$JUHHPHQWVRQ'LVSXWHG&ODLPV
3DUWLHVPD\DJUHHWRDGMXVWFODLPVZKLFKDUHGLVSXWHGEHWZHHQWKHPVHOYHVWKHDJUHHPHQWPXVWEHLQ ZULWLQJRWKHUZLVHLWVKDOOEHYRLG
6HFWLRQ
'HDWKRIDQ(PSOR\HH
$QHQWLWOHPHQWDFODLP WRFRPSHQVDWLRQIRUSDLQDQGDJJUDYDWLRQRIVRFLDOVHOIDVVHUWLRQXVHIXOQHVV VKDOOH[WLQJXLVKXSRQWKHGHDWKRIWKHHPSOR\HH
2WKHU RI WKH HPSOR\HH V HQWLWOHPHQWV VKDOO QRW H[WLQJXLVK RQ KLV GHDWK ZDJH HQWLWOHPHQWV HQVXLQJ IURPHPSOR\PHQWUHODWLRQVKLSXSWRDQDPRXQWHTXDOWRWKUHHWLPHVKLVDYHUDJHPRQWKO\HDUQLQJVVKDOO SDVVLQVHTXHQFHGLUHFWO\WRKLVVSRXVHFKLOGUHQDQGSDUHQWVLIWKH\OLYHGZLWKKLPLQRQHKRXVHKROGDW WKHWLPHRIKLVGHDWKLIKHKDGQRUHODWLYHVRIWKLVNLQGWKHHQWLWOHPHQWVVKDOOEHFRPHSDUWRIKLVHVWDWH
$QHPSOR\HU VSHFXQLDU\HQWLWOHPHQWVFODLPV H[WLQJXLVKXSRQWKHGHDWKRIWKHHPSOR\HHZLWKWKH H[FHSWLRQRIHQWLWOHPHQWVZKLFKDUHWKHVXEMHFWRIDILQDOHQIRUFHDEOH MXGJPHQWRUZKLFKWKHHPSOR\HH DFFHSWHG EHIRUH KLV GHDWK LQ ZULWLQJ LQ UHVSHFW RI WKH JURXQGV DQG DPRXQWV DQG HQWLWOHPHQWV WR FRPSHQVDWHZLOIXOGDPDJHRUORVVRILWHPVHQWUXVWHGWRWKHHPSOR\HHDJDLQVWDZULWWHQUHFHLSW
&+$37(59
7,0(/,0,76$1'3(5,2'6 6HFWLRQ
$Q HQWLWOHPHQW VKDOO EHFRPH VWDWXWHEDUUHG LI LW LV QRW FODLPHG EHIRUH D FRXUW ZLWKLQ D WLPHOLPLW SUHVFULEHG E\ WKLV &RGH 6WDWXWH RI OLPLWDWLRQV QHJDWLYH SUHVFULSWLRQ VKDOO RQO\ EH FRQVLGHUHG LI WKH SHUVRQIURPZKRPWKHHQWLWOHPHQWLVFODLPHGUHIHUVWRLWLQVXFKFLUFXPVWDQFHVDVWDWXWHEDUUHGFODLPPD\ QRWEHJUDQWHGWRWKHRWKHUSDUW\
7KH HQWLWOHPHQW RI DQ HPSOR\HH WR FRPSHQVDWLRQ IRU ORVV RI HDUQLQJV GXH WRDQLQMXU\DWZRUNDQ LQGXVWULDOLQMXU\ RURFFXSDWLRQDOGLVHDVHVHFWLRQVDQG RURWKHUGDPDJHWRKLVKHDOWKVHFWLRQ DQGWRUHLPEXUVHPHQWRIH[SHQVHVIRUWKHPDLQWHQDQFHRIVXUYLYRUVVHFWLRQ VKDOOQRWEHFRPH VWDWXWHEDUUHG +RZHYHU FODLPV UHJDUGLQJ LQGLYLGXDO SD\PHQWV GHULYHG IURP WKHVH ULJKWV VKDOO EHFRPH VWDWXWHEDUUHG
,IDSDUW\FODLPVKLVHQWLWOHPHQWEHIRUHDFRXUWDQGGXO\FRQWLQXHVLQWKHLQLWLDWHGSURFHHGLQJVWKH SHULRGRIOLPLWDWLRQVVKDOOQRWUXQGXULQJWKHSURFHHGLQJV7KHVDPHVKDOODSSO\WRHQWLWOHPHQWVJUDQWHG XQGHUDILQDOHQIRUFHDEOH MXGJPHQWDQGIRUZKLFKDZULWRIH[HFXWLRQZDVSURSRVHGEHIRUHWKHFRXUW
$ULJKWHQWLWOHPHQW VKDOOH[WLQJXLVKEHGLVFKDUJHG LILWLVQRWFODLPHGZLWKLQWKHIL[HGWLPHOLPLW RQO\ LQ WKH FLUFXPVWDQFHV VWDWHG LQ VHFWLRQV DQG DQG ,I VXFKDULJKWLVFODLPHGDIWHUH[SLU\RIWKHIL[HGWLPHOLPLWWKHFRXUWVKDOOFRQVLGHUH[WLQJXLVKPHQWRIWKH ULJKWHYHQLIDSDUW\WRWKHSURFHHGLQJVGRHVQRWUHIHUWRWKLVIDFW
6HFWLRQ
$WLPHOLPLWVKDOOEHJLQWRUXQRQWKHGD\ZKHQDULJKWFRXOGKDYHEHHQFODLPHGIRUWKHILUVWWLPH
,I SHUIRUPDQFH IXOILOPHQW E\ LQVWDOPHQWV ZDV DJUHHG WKH WLPHOLPLW IRU FODLPLQJ HQWLWOHPHQWV WR LQGLYLGXDOLQVWDOPHQWVVKDOOEHJLQWRUXQRQWKHGD\WKH\PDWXUH,IDVDUHVXOWRIQRQSHUIRUPDQFHQRQ IXOILOPHQW RIDQ\RIWKHLQVWDOPHQWVWKHHQWLUHHQWLWOHPHQWEHFRPHVSD\DEOHWKHWLPHOLPLWVKDOOEHJLQWR UXQRQWKHGD\WKHXQSDLGLQVWDOPHQWZDVGXH
6HFWLRQ
8QOHVVWKLV&RGHSURYLGHVIRURWKHUZLVHWKHWLPHOLPLWIRUFODLPLQJDSHFXQLDU\HQWLWOHPHQWVKDOOEH WKUHH\HDUV
7KHWLPHOLPLWIRUFODLPLQJDSHFXQLDU\HQWLWOHPHQWUHFRJQL]HGLQZULWLQJLQUHVSHFWRILWVJURXQGV DQGDPRXQWE\WKHSHUVRQSDUW\ REOLJHGWRVDWLVI\LWDQGHQWLWOHPHQWVVHFXUHGE\DQHQFXPEUDQFHRQWKH WUDQVIHURIUHDOHVWDWHVKDOOEHWHQ\HDUV,IUHFRJQLWLRQRIWKHHQWLWOHPHQWFRQFHUQVUHFXUULQJIXOILOPHQWV WKHWLPHOLPLWIRUFODLPLQJHQWLWOHPHQWWRLQGLYLGXDOIXOILOPHQWVVKDOOEHWKUHH\HDUVIURPWKHLUGXHGDWH PDWXULW\
7KHWLPHOLPLWIRUFODLPLQJDQHQWLWOHPHQWWRFRPSHQVDWLRQIRUGDPDJHGDPDJHV VKDOOEHWZR\HDUV LWVKDOOEHJLQWRUXQRQWKHGD\ZKHQWKHLQMXUHGDJJULHYHG SDUW\OHDUQVWKDWLWKDVVXIIHUHGGDPDJHDQG ZKRLVOLDEOHIRULW+RZHYHUWKHHQWLWOHPHQWWRGDPDJHVVKDOOEHFRPHVWDWXWHEDUUHGLILWLVQRWFODLPHG ZLWKLQ WKUHH \HDUV XQOHVV ZLOIXO GDPDJH ZDV LQYROYHG ZKHQ WKH WLPHOLPLW VKDOO EH WHQ \HDUV DIWHU RFFXUUHQFHRIWKHHYHQWZKLFKOHGWRWKHGDPDJHWKLVVKDOOQRWDSSO\ZKHUHKDUPZDVFDXVHGWRKHDOWK
,I GDPDJH ZDV FDXVHG E\ D EUHDFK RI OHJDO GXW\ DV D FRQVHTXHQFH RI SURYLGLQJ RIIHULQJ RU SURPLVLQJDEULEH1RWHD E\DSHUVRQRWKHUWKDQWKHDJJULHYHGSDUW\RUDVDFRQVHTXHQFHRIGLUHFW RI LQGLUHFW GHPDQG RI D EULEH IURP WKH DJJULHYHG SDUW\ ³FRUUXSWLRQ SUDFWLFHV´ RU ³FRUUXSWLRQ FRQGXFW´ WKHULJKWWRFODLPFRPSHQVDWLRQIRUVXFKGDPDJHLHGDPDJHV VKDOOH[WLQJXLVKDIWHUWKUHH \HDUV RI WKH GD\ ZKHQ WKH DJJULHYHG SDUW\ OHDUQHG RI WKH GDPDJH DQG RI WKH SHUVRQ EHLQJ OLDEOH DFFRXQWDEOH IRU LW KRZHYHU QR ORQJHU WKDQ \HDUV DIWHU WKH GD\ ZKHQ WKH FRUUXSWLRQ SUDFWLFHV FRQGXFW RFFXUUHG
6HFWLRQ
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
&ODLPVWRLQGLYLGXDOUHFXUULQJIXOILOPHQWVZKLFKDUHGXHRQWKHEDVLVRIDILQDOUXOLQJRUDQDIILUPHG FRQFLOLDWLRQDZDUGVKDOOEHFRPHVWDWXWHEDUUHGLIDSHWLWLRQIRUDZULWRIH[HFXWLRQLVQRWILOHGZLWKLQWKUHH \HDUVRIWKHGD\RIWKHLUPDWXULW\
,I D SDUW\ ILOHV D SHWLWLRQ IRU D ZULW RI H[HFXWLRQ ZLWKLQ WKH WLPHOLPLWV IL[HG LQ WKH SUHFHGLQJ VXEVHFWLRQVWKHSHULRGRIWKHSURFHHGLQJVRQWKHZULWRIH[HFXWLRQVKDOOQRWEHLQFOXGHGLQWKHUXQQLQJRI WKHWLPHOLPLWV
6HFWLRQ
,QWKHFDVHRIDQHPSOR\HH VFODLPRUDFODLPDJDLQVWDQHPSOR\HHZKRLVUHTXLUHGWRKDYHDJXDUGLDQ WKHSHULRGZKHQDJXDUGLDQKDVQRWEHHQDSSRLQWHGVKDOOQRWEHLQFOXGHGLQWKHUXQQLQJRIWKHWLPHOLPLW IRUDVVHUWLRQRIVXFKFODLP
6HFWLRQ
7LPH&DOFXODWLRQV
$WLPHOLPLWVKDOOEHJLQWRUXQRQWKHGD\IROORZLQJWKHHYHQWZKLFKLVGHFLVLYHIRUWKHVWDUWRIWKH SHULRG
7KHILQDOGD\RIDWLPHOLPLWGHWHUPLQHGLQZHHNVPRQWKVRU\HDUVVKDOOIDOORQWKHGD\ZKRVHQDPH RUWKHGDWHZKRVHQXPEHUFRUUHVSRQGVWRWKHGD\RQZKLFKWKHHYHQWZKLFKVWDUWHGWKHWLPHOLPLWIHOO,I WKHUHLVQRVXFKGD\LQWKHPRQWKWKHODVWGD\LQWKHPRQWKVKDOOEHWKHODVWGD\RIWKHWLPHOLPLW7KHWHUP ³RQHKDOIRIDPRQWK´VKDOOEHXQGHUVWRRGWRPHDQGD\V
,IWKHILQDOGD\RIDWLPHOLPLWIDOOVRQD6DWXUGD\6XQGD\RUSXEOLFKROLGD\WKHIROORZLQJZRUNLQJ GD\VKDOOEHWKHODVWGD\RIWKHWLPHOLPLW
3HWLWLRQV WR D FRXUW DQG ZULWWHQ PDQLIHVWDWLRQV RI ZLOO PXVW EH GHOLYHUHG WR VHUYHG RQ WKH RWKHU SDUWLHVZLWKLQWKHIL[HGWLPHOLPLWVXQOHVVWKLV&RGHRUWKHODERXUODZSURYLVLRQVVWLSXODWHRWKHUZLVH
7KH SURYLVLRQV RI WKH SUHFHGLQJ VXEVHFWLRQV VKDOO QRW DSSO\ WR WLPHOLPLWV WR ZKLFK ULJKWV DQG REOLJDWLRQVZHUHUHVWULFWHGVHFWLRQ RUWRRWKHUSHULRGVRQZKRVHH[SLU\WKHFUHDWLRQRIULJKWVDQG GXWLHVDUHFRQGLWLRQDOWKHVHWLPHOLPLWVVKDOOVWDUWWRUXQRQWKHILUVWGD\DQGILQLVKRQWKHILQDOGD\RIWKH IL[HGRUDJUHHGSHULRG
6HFWLRQD
'HOLYHU\RI'RFXPHQWV
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
'RFXPHQWVZKLFKDUHGHOLYHUHGE\WKHHQWLW\OLFHQVHGIRUSRVWDOVHUYLFHVVKDOOEHVHQWE\WKHHPSOR\HU WR WKH ODVW DGGUHVV RI WKH HPSOR\HH NQRZQ WR WKH HPSOR\HU E\ UHJLVWHUHG PDLO ZKHQ GHOLYHU\ VKDOO EH FRQILUPHGE\DUHFHLSWZKLFKLQFOXGHVWKHZRUGV³SHUVRQDOO\GHOLYHUHG´
,I DQ HPSOR\HH WR ZKRP GRFXPHQWV DUH WR EH GHOLYHUHG E\ UHJLVWHUHG PDLO LV QRW SUHVHQW DW KLV DGGUHVVZKHQWKHPDLOLVGHOLYHUHGHYHQWKRXJKKHUHVLGHVDWWKHDGGUHVVWKHGRFXPHQWVVKDOOEHOHIWDW WKHORFDOHVWDEOLVKPHQWSRVWRIILFH RISRVWDOVHUYLFHVOLFHQFHKROGHURUDWWKHRIILFHRIWKHORFDODXWKRULW\ DQGWKHDGGUHVVHHVKDOOEHVXLWDEO\LQIRUPHGRIWKLVIDFW7KHGRFXPHQWVVKDOOEHOHIWWKHUHIRUWHQGD\V 7KH FRPPHQFHPHQW RI WKLV SHULRG VKDOO EH GXO\ PDUNHG RQ WKH HQYHORSH ,I WKH GRFXPHQWV DUH QRW
FROOHFWHGE\WKHHPSOR\HHGXULQJWKHWLPHOLPLWVWDWHGLQWKHVHFRQGVHQWHQFHWKHSRVWDOVHUYLFHVOLFHQFH KROGHUVKDOOUHWXUQWKHHQYHORSHFRQWDLQLQJWKHGRFXPHQWVWRWKHHPSOR\HUZLWKDQRWHWKDWWKHHQYHORSH FRXOG QRW EH GHOLYHUHG 6KRXOG WKH HPSOR\HH UHIXVH WR WDNH GHOLYHU\ RI WKH HQYHORSH FRQWDLQLQJ WKH GRFXPHQWV WKLV VKDOO EH GXO\ QRWHG RQ WKH HQYHORSH E\ WKH SRVWDO VHUYLFHV OLFHQFHKROGHU DQG WKH HQYHORSHVKDOOEHUHWXUQHGWRWKHHPSOR\HU
7KHHPSOR\HU VGXW\WRGHOLYHUDGRFXPHQWLVIXOILOOHGDVVRRQDVWKHHPSOR\HHWDNHVGHOLYHU\RIWKH GRFXPHQW RU DV VRRQ DV LW LV UHWXUQHG E\ WKH SRVWDO VHUYLFHV OLFHQFHKROGHU WR WKH HPSOR\HU DV XQGHOLYHUDEOH LI WKH HPSOR\HH KDG IUXVWUDWHG GHOLYHU\ RI WKH GRFXPHQW E\ KLV DFWV RU RPLVVLRQV 7KH FRQVHTXHQFHVRIGHOLYHU\VKDOORFFXUHYHQLIWKHHPSOR\HHUHIXVHVWRWDNHGHOLYHU\RIWKHGRFXPHQW
3$576,;
&21&/8',1*3529,6,216 6SHFLDO5HJXODWLRQRIWKH(PSOR\PHQW5HODWLRQVKLSVRI&HUWDLQ(PSOR\HHV 6HFWLRQ
,IWKHHIIHFWLYHSURWHFWLRQRIVWDWHLQWHUHVWVRULPSRUWDQWHFRQRPLFLQWHUHVWVVRUHTXLUHVDJRYHUQPHQW GHFUHHPD\GHWHUPLQHGHURJDWLRQVIURPWKLV&RGHLQWKHFDVHRIDQHPSOR\HHVHQWDEURDGUHJDUGLQJ
D KLVWUDQVIHUSRVWLQJ WRDZRUNSODFHDEURDGRUUHFDOOWKHUHIURP
E WKHOHQJWKRIWKHSUHVFULEHGZHHNO\ZRUNLQJWLPHLWVVFKHGXOLQJZRUNDEURDGRQGD\VRIUHVWRULWV UHPXQHUDWLRQ SD\PHQW RI ZDJHV UHPXQHUDWLRQ DQG FRPSHQVDWRU\ ZDJHV DQG UHLPEXUVHPHQW RI H[SHQVHVLQRWKHUWKDQ&]HFKFXUUHQF\
F KLVWDNLQJXSVXEVLGLDU\HPSOR\PHQWUHODWLRQVKLSVDQGFRQFOXGLQJDJUHHPHQWVIRUZRUNRXWVLGHRIWKH HPSOR\PHQWUHODWLRQVKLS
(PSOR\PHQWUHODWLRQVKLSVRIHPSOR\HHVZKRGRQRWZRUNDWWKHLUHPSOR\HU VZRUNSODFHEXWZKRLQ DFFRUGDQFHZLWKWKHWHUPVRIWKHLUHPSOR\PHQWFRQWUDFWSHUIRUPWKHZRUNDJUHHGZLWKWKHHPSOR\HUDW KRPH GXULQJ ZRUNLQJ KRXUV ZKLFK WKH\ VFKHGXOH WKHPVHOYHV KHUHDIWHU ³KRPH ZRUNHUV´ VKDOO EH UHJXODWHGE\WKLV&RGHZLWKWKHVHH[FHSWLRQV D WKH SURYLVLRQV RQ WKH VFKHGXOLQJ RI SUHVFULEHG ZHHNO\ WLPHDQGRQWKHLQWHUUXSWLRQDWZRUNGXHWR EUHDNGRZQVVKDOOQRWDSSO\
E LQWKHFDVHRIVHULRXVSHUVRQDOLPSHGLPHQWVWRZRUNKRPHZRUNHUVDUHQRWHQWLWOHGWRFRPSHQVDWRU\ ZDJHVIURPWKHHPSOR\HU
F WKH\ DUH QRW HQWLWOHG WR D SUHPLXP ERQXV IRURYHUWLPHZRUNZRUNRQSXEOLFKROLGD\VRUWRRWKHU ZDJHFRPSRQHQWVGHWHUPLQHGLQWKHSURYLVLRQVRQZDJHV
$JRYHUQPHQWGHFUHHPD\GHWHUPLQHRWKHUH[FHSWLRQVLQWKHFDVHRIKRPHZRUNHUVZKHUHWKHVHDUH QHFHVVLWDWHGE\GLIIHUHQFHVLQWKHLUZRUNLQJFRQGLWLRQVRUGHWHUPLQHWKDWLQWKHFDVHRIFHUWDLQVHULRXV SHUVRQDOLPSHGLPHQWVWRZRUNWKH\DUHHQWLWOHGWRFRPSHQVDWRU\ZDJHVIURPWKHLUHPSOR\HU
6HFWLRQVDDQG 5HSHDOHG
6HFWLRQ
6SRXVHVPD\QRWHQWHULQWRDODERXUUHODWLRQVZLWKHDFKRWKHU 6HFWLRQ
7KHSURYLVLRQVRIVHFWLRQVDQG DQG VKDOODOVRDSSO\WRDQHPSOR\HHSHUPDQHQWO\ ORRNLQJDIWHUDFKLOG
7KHSURYLVLRQVRIVHFWLRQV DQG VKDOODOVRDSSO\WRDQHPSOR\HHZKRSURYHVWKDW KHXVXDOO\RQKLVRZQSURYLGHVORQJWHUPFDUHIRUDPRVWO\RUFRPSOHWHO\EHGULGGHQSHUVRQ
6HFWLRQVDDQGE 5HSHDOHG
'HILQLWLRQRI7HUPV 6HFWLRQ
³'DQJHURIDQRFFXSDWLRQDOGLVHDVH´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
6HFWLRQ
³6WDWXWRU\SURYLVLRQVODERXUODZSURYLVLRQVVSHFLDODQGZDJHSURYLVLRQVUHJXODWLRQV ´UHIHUUHGWRLQ WKLV &RGH VKDOO PHDQ SURYLVLRQV UHJXODWLRQV ZKLFK DUH JHQHUDOO\ ELQGLQJ )RU WKH SXUSRVHV RI VHFWLRQ ZKHQDQDXWKRULW\RUJDQERG\ VXSHULRUWRDQHPSOR\HUDSSRLQWVDVHQLRUPDQDJHULDOHPSOR\HHWR DSRVLWLRQWKLVVKDOODOVRPHDQDQ\DSSRLQWPHQWWRDSRVLWLRQEDVHGRQD*RYHUQPHQWUHVROXWLRQ
5HJDUGLQJ WKH LVVXH RI ODERXUODZ SURYLVLRQV UHJXODWLRQV ZKHQ WKLV &RGH UHIHUV WR ³FHQWUDO DXWKRULWLHV´LWVKDOOPHDQWKHFHQWUDODXWKRULWLHVRIWKHVWDWHDGPLQLVWUDWLRQ
)RUWKHSXUSRVHVRIWKLV&RGHWKHWHUP³DVXSHULRURUJDQ´³VXSHULRUERG\´RU³VXSHULRUDXWKRULW\´ VKDOOPHDQWKRVHDXWKRULWLHVZKLFKXQGHURWKHUVWDWXWRU\SURYLVLRQVDUHDXWKRUL]HGWRLQVSHFWHPSOR\HUV SHUIRUPDQFHRIWKHLUWDVNV
)RU WKH SXUSRVHV RI WKLV &RGH WKH WHUPV ³FRPSHWHQW WUDGH XQLRQ RUJDQL]DWLRQ ERG\ RUJDQ ´ ³FRPSHWHQW KLJKHU WUDGH XQLRQ ERG\RUJDQ ´RU³FRPSHWHQWFHQWUDOWUDGHXQLRQERG\RURUJDQ ´VKDOO PHDQWKHRUJDQDXWKRUL]HGWRDFWRQEHKDOIRIVXFKWUDGHXQLRQRUJDQL]DWLRQLQPDWWHUVRIOHJDOUHODWLRQV WKHWHUP³FRPSHWHQWFHQWUDOWUDGHXQLRQERG\RUJDQ ´VKDOOPHDQWKHRUJDQDXWKRUL]HGWRDFWRQEHKDOIRI WKHUHOHYDQWIHGHUDWLRQRIWUDGHXQLRQRUJDQL]DWLRQVLQPDWWHUVRIOHJDOUHODWLRQV1RWH
6HFWLRQ
³6WDWXWRU\SURYLVLRQVDQGRWKHUUHJXODWLRQVRQVDIHW\DQGWKHSURWHFWLRQRIKHDOWKDWZRUN´VKDOOPHDQ
SURYLVLRQVRUUHJXODWLRQVRQWKHSURWHFWLRQRIOLIHDQGKHDOWKDQGRQK\JLHQHDQGHSLGHPLFVUHJXODWLRQVRQ WKHVDIHW\RIHTXLSPHQWDQGVWDQGDUGVQRUPV EXLOGLQJUHJXODWLRQVWUDQVSRUWUHJXODWLRQVILUHSUHYHQWLRQ UHJXODWLRQV DQG UHJXODWLRQV RQ WKH KDQGOLQJ RI IODPPDEOHV H[SORVLYHVZHDSRQVUDGLRDFWLYHPDWHULDOV FKHPLFDOVXEVWDQFHVDQGFKHPLFDOSUHSDUDWLRQVDQGRWKHUPDWHULDOVKDUPIXOWRKHDOWKWRWKHH[WHQWWKDW WKH\UHJXODWHLVVXHVUHODWLQJWRWKHSURWHFWLRQRIOLIHDQGKHDOWK
,QVWUXFWLRQV VDIHJXDUGLQJ VDIHW\ DQG WKH SURWHFWLRQ RI KHDOWK DW ZRUN VKDOO EH VSHFLILF LQVWUXFWLRQV JLYHQWRDQHPSOR\HHE\KLVVXSHULRUIRUWKLVSXUSRVH
6HFWLRQ
³6LQJOHSHUVRQV´VKDOOEHXQGHUVWRRGWRPHDQXQPDUULHGZLGRZHGRUGLYRUFHGZRPHQXQPDUULHG ZLGRZHGRUGLYRUFHGPHQDVZHOODVZRPHQDQGPHQZKRDUHVLQJOHIRURWKHUJRRGUHDVRQVLIWKH\GR QRWOLYHZLWKDFRPPRQODZKXVEDQGRUZLIH
³$GROHVFHQWHPSOR\HHV´VKDOOPHDQHPSOR\HHVXQGHU\HDUVRIDJH
7KH)DPLO\$FWVKDOOGHWHUPLQHZKLFKSHUVRQFDQEHWKHOHJLWLPDWHUHSUHVHQWDWLYHRIDQDGROHVFHQW HPSOR\HH
6HFWLRQ
$YHUDJH(DUQLQJV
7KHGHWHUPLQDWLRQDQGDSSOLFDWLRQRIDYHUDJHHDUQLQJVVKDOOEHVXEMHFWWRDQRWKHU$FW1RWH
)RU WKH SXUSRVHV RI ODERXU ODZ ³DQ HPSOR\HH V DYHUDJH HDUQLQJV´ VKDOO PHDQ KLV DYHUDJH JURVV HDUQLQJVXQOHVVODERXUODZSURYLVLRQVVWLSXODWHRWKHUZLVH
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
7UDQVLWRU\3URYLVLRQV 6HFWLRQ
/DERXUUHODWLRQVRULJLQDWLQJSULRUWR-DQXDU\VKDOODOVREHFRQVLGHUHGLQDFFRUGDQFHZLWKWKLV &RGHXQOHVVIXUWKHUSURYLGHGIRURWKHUZLVH
(QWLWOHPHQWV HQVXLQJ IURP DQ HPSOR\PHQW UHODWLRQVKLS XQWLO 'HFHPEHU DQG DFWV LQ ODZ FRQFHUQLQJ WKH PRGLILFDWLRQ RU WHUPLQDWLRQ RI DQ HPSOR\PHQW UHODWLRQVKLS LI VXFK DFWV LQ ODZ ZHUH XQGHUWDNHQEHIRUH-DQXDU\DQGWKHLUOHJDOHIIHFWVHYHQLIGXHDIWHUWKLVGDWH ZHUHUHODWHGWRVXFK DQHPSOR\PHQWUHODWLRQVKLSVKDOOEHFRQVLGHUHGLQDFFRUGDQFHZLWKWKHVWDWXWRU\SURYLVLRQVZKLFKZHUH WKHQ LQ HIIHFW KRZHYHU WKH YDOLGLW\ RI WKH HVWDEOLVKPHQW RI DQ HPSOR\PHQW UHODWLRQVKLS DJUHHG LQ DQ HPSOR\PHQWFRQWUDFWVKDOODOZD\VEHFRQVLGHUHGSXUVXDQWWRWKLV&RGH
,Q WKH FDVH RI HPSOR\HHV ZKRVH HPSOR\PHQW UHODWLRQVKLS ZDV KLWKHUWR VXEMHFW WR WKH $FW RQ (PSOR\PHQW DQG 3D\ &RQGLWLRQV RI 6WDWH (PSOR\HHV 1R &ROO WKH NLQG RI ZRUN ZKLFK FRUUHVSRQGVWRWKHIXQFWLRQWRZKLFKWKH\ZHUHDSSRLQWHGRQDORQJWHUPEDVLVEHIRUH-DQXDU\VKDOO EHFRQVLGHUHGDVWKHLUDJUHHGW\SHNLQG RIZRUNWKHVDPHVKDOODSSO\WRWKHSODFHZKHUHWKHLUZRUNLV
SHUIRUPHG
%UHDFKHVRIZRUNGLVFLSOLQHZKLFKRFFXUUHGEHIRUH-DQXDU\VKDOOEHFRQVLGHUHGSXUVXDQWWR WKLV&RGHLIDGHFLVLRQWRLPSRVHGLVFLSOLQDU\PHDVXUHVKDVQRW\HWFRPHLQWRHIIHFW7KHSURYLVLRQVRI VHFWLRQ KRZHYHUVKDOODOVRDSSO\WRGLVFLSOLQDU\PHDVXUHVLPSRVHGSULRUWRWKDWGD\
6HFWLRQ
/DERXU GLVSXWHV LQ UHVSHFW RI ZKLFK SURFHHGLQJV ZHUH LQLWLDWHG EHIRUH -DQXDU\ VKDOO EH FRQVLGHUHGDQGGHFLGHGE\WKHDXWKRULW\ZKLFKLVFRPSHWHQWDFFRUGLQJWRWKHVWDWXWRU\SURYLVLRQVWKHQLQ HIIHFW
,QWKHFDVHRILQLWLDWHGODERXUGLVSXWHVZKLFKZHUHKLWKHUWRFRQVLGHUHGXQGHU*RYHUQPHQW'HFUHH1R &ROO RQ WKH ULJKWV DQG REOLJDWLRQV RI VWDWH HPSOR\HHV SURFHHGLQJV LQ PDWWHUV RI WKHLU HPSOR\PHQW UHODWLRQVKLS DQG DUELWUDWLRQ WULEXQDOV DV DPHQGHG E\ *RYHUQPHQW 'HFUHH 1R &ROO WKHSURFHGXUHVKDOOEHDVIROORZV
D LIWKHSHUVRQQHORIILFHGRHVQRWXSKROGREMHFWLRQVDVILOHGLWZLOOSDVVWKHPWRWKHDXWKRULW\ZKLFK XQGHUWKLV&RGHLVFRPSHWHQWWRGHDOZLWKGLVSXWHV
E ERGLHVDXWKRULWLHV ZLWKZKLFKFRPSODLQWVDQGDSSHDOVZHUHILOHGVKDOOSDVVWKRVHZKLFKZHUHQRW ILQDOO\GHFLGHGE\'HFHPEHUWRWKHFRPSHWHQWGLVWULFWFRXUWZKLFKVKDOOFRQVLGHUWKHP
,IWKHVWDWHSURVHFXWRUSURSRVHVWRDQQXODILQDOUXOLQJLVVXHGRQDODERXUGLVSXWHXQGHUWKHSUHFHGLQJ VXEVHFWLRQEHFDXVHLWLVFRQWUDU\WRWKHVWDWXWRU\SURYLVLRQVWKHFHQWUDOFRPPLWWHHRIWKHFRPSHWHQWWUDGH XQLRQIHGHUDWLRQDVVRFLDWLRQ ZLOOPDNHDGHFLVLRQWRDQQXOLW$IWHULWDQQXOVVXFKDUXOLQJLWVKDOOUHIHU WKHGLVSXWHWRWKHFRPSHWHQWFRXUW
6HFWLRQ
7LPHOLPLWVZKLFKVWDUWHGWRUXQEHIRUH-DQXDU\VKDOOEHFRQVLGHUHGXQWLOWKHWHUPLQDWLRQRI WKRVHWLPHOLPLWVXQGHUWKHVWDWXWRU\SURYLVLRQVKLWKHUWRLQIRUFH
3HULRGVRIOLPLWDWLRQZKLFKVWDUWHGWRUXQEHIRUH-DQXDU\VKDOOEHFRQVLGHUHGSXUVXDQWWRWKH VWDWXWRU\SURYLVLRQVLQIRUFHXQWLOWKDWWLPH,IKRZHYHUWKLV&RGHVHWVIRUWKHDVVHUWLRQRIDQHQWLWOHPHQWD SHULRGZKLFKLVVKRUWHUWKDQWKDWXQGHUWKHKLWKHUWRHIIHFWLYHVWDWXWRU\SURYLVLRQVWKHSHULRGWLPHOLPLW VKDOO HQG ODWHVW RQ 'HFHPEHU $ WLPHOLPLW IRU DVVHUWLQJ WKH LQYDOLGLW\ RI VHYHUDQFH RI DQ HPSOR\PHQWUHODWLRQVKLSVKDOOHQGQRODWHUWKDQWKUHHPRQWKVDIWHUWKLV&RGHFRPHVLQWRIRUFH$IWHUWKH H[SLU\RIWKHVDLGSHULRGVWLPHOLPLWV WKHHQWLWOHPHQWVFRQFHUQHGVKDOOH[WLQJXLVK
$Q HQWLWOHPHQW WR FRPSHQVDWLRQ IRU GDPDJH WKDW ZDV LQWHQWLRQDOO\ FDXVHG DQG IURP ZKLFK WKH RIIHQGHUJDLQHGDPDWHULDOEHQHILWH[SLUHVDWWKHHQGRIDWHQ\HDUSHULRGVWDUWLQJIURPWKHGD\ZKHQWKH RULJLQDOSHULRGRIOLPLWDWLRQEHJDQWRUXQ
6HFWLRQ
7KHIROORZLQJDUHKHUHE\UHSHDOHG
5HSHDOLQJ3URYLVLRQV
&KDSWHU;;9,RIWKH*HQHUDO&LYLO&RGHSURPXOJDWHGRQ-XQHDVDPHQGHG
7KH7UDGHV/LFHQVLQJ5XOHV1R,/,PSHULDO/DZV DVDPHQGHG
$FW1R,/RQHPSOR\LQJDGROHVFHQWZRUNHUVDQGZRPHQRQGDLO\ZRUNLQJKRXUVDQG
RQ6XQGD\UHVWIURPPLQLQJDVDPHQGHG
$FW1R,/ZKLFKUHJXODWHV6XQGD\DQGKROLGD\UHVWIRUWKHWUDGHVDVDPHQGHG
'HFUHH1R,/RQWKHVHUYLFLQJRIPDFKLQHU\RQPDULWLPHVWHDPVKLSVRIWKHPHUFKDQW IOHHW
'HFUHH1R,/RQWKHUHJXODWLRQRIZRUNLQJFRQGLWLRQVIRUHPSOR\HHVLQOHDGDQG]LQF ZRUNV
$FW 1R ,/ RQ WKH VHUYLFH FRQWUDFWV RI SHUVRQV DSSRLQWHG LQ IDUPLQJ DQG IRUHVWU\ HQWHUSULVHVWRVHUYLFHLQKLJKHUJUDGHV$FWRQ&LYLO6HUYDQWV
'HFUHH1R,/ZKLFKVXSSOHPHQWVWKHSURYLVLRQVRQWKHVHUYLFLQJDQGVXSHUYLVLRQRI VWHDPERLOHUVDQGVWHDPHQJLQHV
$FW1R&ROORQWKHHLJKWKRXUZRUNLQJGD\
'HFUHH 1R &ROO LVVXLQJ UHJXODWLRQV LPSOHPHQWLQJ WKH $FW RQ WKH HLJKWKRXU ZRUNLQJ GD\
$FW1R&ROORQFKLOGODERXU
$FW 1R &ROO UHJXODWLQJ WKH HPSOR\PHQW DQG ZDJH UHODWLRQV IRU GRPHVWLF ZRUN DV DPHQGHGE\*RYHUQPHQW'HFUHH1R&ROO
'HFUHH1R&ROORQWKHUHJXODWLRQRIZRUNLQJKRXUVLQSKDUPDFLHV
$FW1R&ROOJHQHUDOO\UHJXODWLQJOHJDOUHODWLRQVEHWZHHQHPSOR\HUVDQGHPSOR\HHVLQ 6ORYDNLDDVDPHQGHGE\$FW1R&ROO
$FW 1R &ROO LVVXLQJ UHJXODWLRQV RQ WKH SURWHFWLRQ RI OLIH DQG KHDOWK RI SHUVRQV HPSOR\HGLQWKHWUDGHVRIKRXVHSDLQWLQJYDUQLVKLQJDQGDUWLVWLFSDLQWLQJ
7UDGHV /LFHQVLQJ $FW IRU 6ORYDNLD 1R &ROO DV DPHQGHG E\ PRGLI\LQJ DQG VXSSOHPHQWLQJVWDWXWRU\SURYLVLRQV
3URYLVLRQV RI 3DUW 7ZR RI *RYHUQPHQW 'HFUHH 1R &ROO UHJXODWLQJ VDODU\ DQG RWKHU VHUYLFHFRQGLWLRQVIRUHPSOR\HHVRIWKH&]HFKRVORYDN6WDWH5DLOZD\V
*RYHUQPHQW'HFUHH1R&ROORQVHUYLFHDQGVDODU\FRQGLWLRQVIRUFUDIWHPSOR\HHVLQWKH WHFKQLFDOFRQVWUXFWLRQDQGPDLQWHQDQFHVHUYLFHDQGLQDXWRPRELOHRSHUDWLRQIRUWKH&]HFKRVORYDN 3RVWDO6HUYLFHDVDPHQGHGE\'HFUHHV1R&ROO1R&ROODQG1R &ROO
$FW1R&ROORQWKHSURWHFWLRQRIWKHGRPHVWLFODERXUPDUNHW
$FW1R&ROORQWKHHPSOR\PHQWUHODWLRQVKLSVRISULYDWHFOHULFDOHPSOR\HHVEXVLQHVV DVVLVWDQWVDQGRWKHUHPSOR\HHVLQVLPLODUSRVLWLRQV$FWRQ3ULYDWH(PSOR\HHV
$FW1R&ROORQHPSOR\PHQWUHODWLRQVKLSRIHGLWRUV
VHFWLRQV DQG RI *RYHUQPHQW 'HFUHH 1R &ROO LVVXLQJ JHQHUDO UHJXODWLRQVIRUWKHSURWHFWLRQRIWKHOLIHDQGKHDOWKRIODERXUHUV
$FW1R6ORYDN/DZVRQHPSOR\LQJIRUHLJQHUV
VHFWLRQRI'HFUHH1R&ROOLVVXLQJUHJXODWLRQVIRUWKHSURWHFWLRQRIWKHOLIHDQGKHDOWK RIHPSOR\HHVZRUNLQJLQDLUFRPSUHVVLRQ
'HFUHH1R&ROORQGRPHVWLFZRUNDVDPHQGHGE\'HFUHH1R&ROO
*RYHUQPHQW 'HFUHH 1R &ROO RQ QRWLILFDWLRQ RI HPSOR\PHQW UHODWLRQVKLS DQG LWV
WHUPLQDWLRQ
'HFUHH 1R &ROO RQ WKH ZRUNLQJ GXWLHV RI SHUVRQV ZKR KDYH ORVW &]HFKRVORYDN FLWL]HQVKLS
'HFUHH1R&ROORQJHQHUDOZRUNLQJGXWLHV
'HFUHH 1R 8O JRYHUQLQJ ODERXUODZ PDWWHUV UHODWLQJ WR WKH LPSOHPHQWDWLRQ RI PHDVXUHVWRDFFHOHUDWHWKHORDGLQJDQGXQORDGLQJRIYHKLFOHVDQGYHVVHOV
$FW1R&ROOLQWURGXFLQJZRUNLGHQWLW\GRFXPHQWV
$FW1R&ROORQWKHUHJXODWLRQRIZRUNLQJKRXUVLQEDNHULHV
'HFUHH 5HJXODWLRQ 1R &ROO RQ WKH LVVXDQFH RI ZRUN LGHQWLW\ GRFXPHQWV DQG DSSOLFDWLRQVIRUVLFNQHVVLQVXUDQFHDVDPHQGHGE\'HFUHH1R&ROO
$FW1R&ROORQORGJLQJDQGRWKHUSURYLVLRQVIRUHPSOR\HHVRQFRQILVFDWHGDJULFXOWXUDO ODQGVDQGWKHLUIDPLO\PHPEHUV
$FW1R&ROORQZRUNLQJKRXUVLQPLQLQJLQGXVWU\
$FW1R&ROOPDNLQJWKHWUDGHRIEORZLQJWHFKQLFDOJODVVDVNLOOHGFUDIW $FW1R&ROOPDNLQJWKHYXOFDQL]LQJWUDGHDVNLOOHGFUDIW $FW1R&ROORQWKHVWDWH VZDJHSROLF\
'HFUHH 5HJXODWLRQ 1R UHJXODWLQJ ZRUNLQJ DQG ZDJH FRQGLWLRQV IRU EDNHU\ HPSOR\HHV
$FW1R&ROORQODERXUUHODWLRQVRIFDUHWDNHUV
*RYHUQPHQW'HFUHH1R&ROOPDNLQJHPSOR\PHQWLQFHUWDLQNLQGVRIZRUNLQUDLOZD\ PDQDJHGZRUNVKRSVDQGDXWRVKRSVHTXDOWRWUDLQLQJDWDQDSSUHQWLFHVFKRROV
$FW1R&ROORQUHLPEXUVHPHQWRIWUDYHOOLQJPRYLQJDQGRWKHUH[SHQVHV
*RYHUQPHQW 'HFUHH 1R &ROO UHJXODWLQJ WKH DPRXQW RI FHUWDLQ UHLPEXUVHPHQWV LQ DFFRUGDQFHZLWKWKH$FWRQUHLPEXUVHPHQWRIWUDYHOOLQJPRYLQJDQGRWKHUH[SHQVHV
VHFWLRQVWRRI$FW1R&ROORQVRFLDOVHFXULW\IRUSHUVRQVGUDIWHGLQWRVHUYLFHZLWK WKH DUPHG IRUFHV DQG IRU WKHLU IDPLO\ PHPEHUV DV DPHQGHG E\ OHJLVODWLYH PHDVXUHV RI WKH 3UHVLGLXPRIWKH1DWLRQDO$VVHPEO\1R&ROO
$FW1R&ROORQHPSOR\PHQWDQGZDJHFRQGLWLRQVIRUVWDWHHPSOR\HHVDVDPHQGHGE\ OHJLVODWLYHPHDVXUHVRIWKH3UHVLGLXPRIWKH1DWLRQDO$VVHPEO\1R&ROO
$FW 1R &ROO RQ HPSOR\PHQW DQG ZDJH FRQGLWLRQV RI FDUHHU MXGJHV SURFXUDWRUV DQG MXGLFLDOWUDLQHHV-XGLFLDU\$FW
VHFWLRQV DQG DQGRI*RYHUQPHQW'HFUHH1R&ROOLVVXLQJ ZDJHUHJXODWLRQVIRUDGPLQLVWUDWLYHHPSOR\HHVDPHQGHGXQGHU*RYHUQPHQW'HFUHH1R &ROO
*RYHUQPHQW'HFUHH1R&ROOZKLFKSURYLGHVIRUWKHFRPLQJLQWRIRUFHRIWKH$FWRQ UHLPEXUVHPHQWRIWUDYHOOLQJPRYLQJDQGRWKHUH[SHQVHV
*RYHUQPHQW 'HFUHH 1R&ROORQHPSOR\PHQWDQGZDJHVFRQGLWLRQVDQGSHQVLRQVRI IRUPHUVHOIJRYHUQHGVWDWHHPSOR\HHVWUDQVIHUUHGWRQDWLRQDORUFRPPXQDOHQWHUSULVHVLQVRIDUDVLW UHJXODWHVHPSOR\PHQWDQGZDJHFRQGLWLRQV
*RYHUQPHQW 'HFUHH 1R &ROO RQ WKH ULJKWV DQG GXWLHV RI VWDWH HPSOR\HHV RQ
SURFHHGLQJV LQ PDWWHUV RI WKHLU HPSOR\PHQW UHODWLRQVKLS DQG RQ DUELWUDWLRQ FRPPLVVLRQV DV DPHQGHGE\*RYHUQPHQW'HFUHH1R&ROO
VHFWLRQVWRRI*RYHUQPHQW'HFUHH1R&ROOLPSOHPHQWLQJWKHDFWRQVRFLDOVHFXULW\ IRUSHUVRQVGUDIWHGLQWRVHUYLFHZLWKWKHDUPHGIRUFHVDQGIRUWKHLUIDPLO\PHPEHUVDVDPHQGHG E\*RYHUQPHQW'HFUHH1R&ROO
VHFWLRQ RIWKH&LYLO&RGH1R&ROO
*RYHUQPHQW 'HFUHH 1R &ROO RQ WKH DGMXVWPHQW RI ZRUNLQJ KRXUV LQ RUGHU WR HQVXUH FRQWLQXRXV WUDQVSRUWDWLRQ RI HPSOR\HHV DQG WKH VXSSO\ RI HOHFWULFLW\ JDV DQG VWHDP KHDWLQJ DV DPHQGHGE\*RYHUQPHQW'HFUHH1R&ROO
VHFWLRQRI$FW1R&ROORQVWDWHSXEOLF KROLGD\VGD\VRIUHVWDQGFRPPHPRUDWLYH DQGVLJQLILFDQWGD\V
*RYHUQPHQW'HFUHH1R&ROOSURKLELWLQJWKHDFFHSWDQFHRIHPSOR\HHVLQWRHPSOR\PHQW LIWKH\KDYHQRWSURSHUO\VHYHUHGWKHLUSUHYLRXVHPSOR\PHQWUHODWLRQVKLS
VHFWLRQV DQG RI *RYHUQPHQW 'HFUHH 1R &ROORQZDJHFRQGLWLRQVRI HPSOR\HHV LQ VWDWH DXWKRULWLHV DV DPHQGHG E\ OHJLVODWLYH PHDVXUHV RI WKH 3UHVLGLXP RI WKH 1DWLRQDO$VVHPEO\1R&ROO
VHFWLRQ D DQG RI *RYHUQPHQW 'HFUHH 1R &ROO RQ SXEOLF WUDQVSRUWDWLRQ RUJDQL]DWLRQVZLWKLQWKH0LQLVWU\RI7UDQVSRUWDWLRQUHVSRQVLELOLW\
'HFUHH1RRQZDJHFRPSHQVDWLRQRIHPSOR\HHVIRUGD\VRIUHVWDQGUHPXQHUDWLRQIRU ZRUNRQWKRVHGD\V
'HFUHH 1R JRYHUQLQJ ODERXU PDWWHUV FRQFHUQLQJ DSSUHQWLFHV DQG WKH SUHSDUDWLRQ RI DGROHVFHQWVIRUDQRFFXSDWLRQLQHPSOR\PHQWUHODWLRQVKLSZLWKDIDFWRU\
5HJXODWLRQ 1R RQ WKH WHUPLQDWLRQ RI FHUWDLQ HPSOR\PHQW UHODWLRQVKLSV ZLWKRXW WKH FRQVHQWRIWKH:RUNIRUFH6HFWLRQRIWKH&RXQFLORIWKH'LVWULFW1DWLRQDO&RPPLWWHH
/HJLVODWLYH 0HDVXUH RI WKH 3UHVLGLXP RI WKH 1DWLRQDO $VVHPEO\ 1R &ROO RQ WKH XQLILFDWLRQ RI GLVFLSOLQDU\ UHJXODWLRQV ZLWKLQ WKH UHVSRQVLELOLW\ RI WKH 0LQLVWU\ RI &RPPXQLFDWLRQV
VHFWLRQV WR RI WKH /HJLVODWLYH 0HDVXUH RI WKH 3UHVLGLXP RI WKH 1DWLRQDO $VVHPEO\ 1R &ROORQWKHUHJXODWLRQRIZDJHFRQGLWLRQVRIWHDFKHUVDQGLQVWUXFWRUV
VHFWLRQV WR DQG VHFWLRQV WR RI WKH /HJLVODWLYH 0HDVXUHV RI WKH 3UHVLGLXP RI WKH 1DWLRQDO $VVHPEO\ 1R &ROO RQ WKH UHJXODWLRQ RI ZDJH FRQGLWLRQV RI KHDOWK FDUH HPSOR\HUV
$FW1R&ROORQWKHVKRUWHQLQJRIZRUNLQJKRXUV
VHFWLRQ DQG RI$FW1R&ROORQHPSOR\HHV VLFNQHVVLQVXUDQFH
$FW 1R &ROO RQ GLVFLSOLQDU\ SURFHHGLQJV IRU WKH PLVDSSURSULDWLRQ DQG GDPDJLQJ RI SURSHUW\LQVRFLDOLVWRZQHUVKLSDQGLPSOHPHQWLQJJXLGHOLQHV1R
VHFWLRQRI$FW1R&ROORQWKHWDVNVRIHQWHUSULVHVDQGQDWLRQDOFRPPLWWHHVLQWKH DUHDRIZHOIDUHRIWKHODERXUIRUFH
$FW1R&ROORQWKHREOLJDWLRQWRFRPSHQVDWHGDPDJHFDXVHGE\HPSOR\HHVWKURXJKD EUHDFKRIGXWLHVDULVLQJIURPHPSOR\PHQWUHODWLRQVKLS
VHFWLRQVWRRI$FW1R&ROO$SSUHQWLFHVKLS$FW
'HFUHH1RRQWKHWHUPLQDWLRQRIFHUWDLQHPSOR\PHQWUHODWLRQVKLSZLWKRXWWKHFRQVHQWRI WKH:RUNIRUFH6HFWLRQRIWKH&RXQFLORIWKH'LVWULFW1DWLRQDO&RPPLWWHH
'HFUHH1RRQWKHPDWHULDOOLDELOLW\RIHPSOR\HHVLQEXVLQHVV
$FW1R&ROORQSDLGOHDYH
'HFUHH1R&ROOLPSOHPHQWLQJFHUWDLQSURYLVLRQVRIWKH$FWRQSDLGDQQXDOOHDYH
*RYHUQPHQW 'HFUHH 1R RQ WKH DVVLJQPHQW RI ZRUN DQG VHUYLFHV WR LQGLYLGXDOV E\ VRFLDOLVWRUJDQL]DWLRQV
'HFUHH1RLVVXLQJJXLGHOLQHVIRUUHVROYLQJODERXUGLVSXWHVLQIDFWRULHV
*RYHUQPHQW'HFUHH1R&ROORQHPSOR\HHV VXSSOHPHQWDU\DQQXDOOHDYH
'HFUHH1R&ROOLVVXLQJDOLVWRIFHUWDLQW\SHVRIZRUNDQGZRUNSODFHVLQUHVSHFWRI PSOR\HHV VXSSOHPHQWDU\DQQXDOOHDYH
'HFUHH 1R &ROO LVVXLQJ JXLGHOLQHV IRU DUELWUDWLRQ LQ WKH ODERXU GLVSXWHV RI VWDWH HPSOR\HHV
$FW1R&ROORQVDIHW\DQGKHDOWKSURWHFWLRQDWZRUN
/HJLVODWLYH 0HDVXUHV RI WKH 3UHVLGLXP RI WKH 1DWLRQDO $VVHPEO\ 1R &ROO RQ FRPSHQVDWRU\ZDJHVLQWKHFDVHRIPLOLWDU\WUDLQLQJ
'HFUHH 1R &ROO RQ HPSOR\PHQW UHODWLRQVKLS WKH SHUIRUPDQFH RI VHUYLFH DQG WKH GLVFLSOLQDU\UHVSRQVLELOLW\RIPHPEHUVRISXEOLFILUHILJKWLQJXQLWV
VHFWLRQV DQG WR RI $FW 1R &ROO RQ LPSURYHG FDUH IRU SUHJQDQW ZRPHQ DQG PRWKHUV
$FW1R&ROORQFRPSHQVDWLRQIRULQMXULHVDWZRUNDQGRFFXSDWLRQDOGLVHDVHV
'HFUHH 1R &ROO LPSOHPHQWLQJ FHUWDLQ SURYLVLRQV RI WKH $FW RQ FRPSHQVDWLRQ IRU LQMXULHVDWZRUNDQGRFFXSDWLRQDOGLVHDVHV
:DJH UHJXODWLRQV UHJXODWLRQV RQ WKH SURYLVLRQ RI FRPSHQVDWLRQ LQ FDVHV RI ZRUN LPSHGLPHQWV IRU UHDVRQVRIWKHSXEOLFLQWHUHVWDQGUHJXODWLRQVRQHQVXULQJVDIHW\DQGKHDOWKSURWHFWLRQDWZRUNZKLFKZHUH QRWUHSHDOHGXQGHUWKHSUHFHGLQJVXEVHFWLRQUHPDLQLQIRUFHSURYLGHGWKDWWKH\DUHQRWFRQWUDU\WRWKLV &RGH 3URYLVLRQVDQGUHJXODWLRQVZKLFKUHJXODWHWKHOHQJWKRIZRUNLQJWLPHIRUHPSOR\HHVPRUHIDYRXUDEO\ WKDQGRHVVHFWLRQRIWKLV&RGHVKDOOUHPDLQLQHIIHFW
6HFWLRQ
(IIHFWLYH'DWH
7KLV&RGH1R&ROO VKDOOFRPHLQWRHIIHFWRQ-DQXDU\
$FW1R&ROOFDPHLQWRHIIHFWRQ-XO\
$FW1R&ROOFDPHLQWRHIIHFWRQ-DQXDU\
$FW1R&ROOFDPHLQWRHIIHFWRQ-DQXDU\
$FW1R&ROOFDPHLQWRHIIHFWRQ-XO\ $FW1R&ROOFDPHLQWRHIIHFWRQ-XO\
$FW1R&ROOFDPHLQWRHIIHFWRQ-DQXDU\
$FW1R&ROOFDPHLQWRHIIHFWRQ$SULO $FW1R&ROOFDPHLQWRHIIHFWRQ-XO\
$FW1R&ROOFDPHLQWRHIIHFWRQ-DQXDU\
$FW1R&ROOFDPHLQWRHIIHFWRQ-DQXDU\
$FW1R&ROOFDPHLQWRHIIHFWRQ)HEUXDU\ $FW1R&ROOFDPHLQWRHIIHFWRQ-XO\
$FW1R&ROOFDPHLQWRHIIHFWRQ0D\
$FW1R&ROOFDPHLQWRHIIHFWRQ-DQXDU\
$FW1R&ROOFDPHLQWRHIIHFWRQ-DQXDU\
$FW1R&ROOFDPHLQWRHIIHFWRQ-DQXDU\ $FW1R&ROOFDPHLQWRHIIHFWRQ-XQH
$FW1R&ROOFDPHLQWRHIIHFWRQ2FWREHU
$FW1R&ROOFDPHLQWRHIIHFWRQ-DQXDU\
$FW1R&ROOFDPHLQWRHIIHFWRQ0D\
$FW1R&ROOFDPHLQWRHIIHFWRQ2FWREHU
$FW1R&ROOFDPHLQWRHIIHFWRQ'HFHPEHU
$FW1R&ROOFDPHLQWRHIIHFWRQ-XO\
$FW1R&ROOFDPHLQWRHIIHFWRQ-DQXDU\DSDUWIURPWKRVHSURYLVLRQVWDNLQJIRUFH RQWKH&]HFK5HSXEOLF VDFFHVVLRQWRWKH(8
$FW1R&ROOFDPHLQWRHIIHFWRQ-DQXDU\
$FW1R&ROOFDPHLQWRHIIHFWRQ-DQXDU\
$FW1R&ROOFDPHLQWRHIIHFWRQ-DQXDU\
$FW1R&ROOFDPHLQWRHIIHFWRQ-DQXDU\
$FW1R&ROOFDPHLQWRHIIHFWRQ0D\ $FW1R&ROOFDPHLQWRHIIHFWRQ$SULO
$FW1R&ROOVKDOOFRPHLQWRHIIHFWRQ-DQXDU\
$FW1R&ROOFDPHLQWRHIIHFWRQ-XO\
$FW1R&ROOVKDOOFRPHLQWRHIIHFWRQ-DQXDU\
$FW1R&ROOVKDOOFRPHLQWRHIIHFWRQ-DQXDU\
$FW1R&ROOVKDOOFRPHLQWRHIIHFWRQ-DQXDU\
$FW1R&ROOVKDOOFRPHLQWRHIIHFWRQ-DQXDU\
$UWLFOH,,RI$FW1R&ROO 7UDQVLWRU\3URYLVLRQV
7KLV $FW 1R &ROO VKDOO DOVR DSSO\ WR ODERXU UHODWLRQVKLSV HVWDEOLVKHG EHIRUH -DQXDU\ DQGWRDJUHHPHQWVRQZRUNSHUIRUPHGRXWVLGHRIDQHPSOR\PHQWUHODWLRQVKLSZKLFKZHUHFRQFOXGHG EHIRUH -DQXDU\ XQOHVV LW LV IXUWKHU VWLSXODWHG RWKHUZLVH KRZHYHU WKHLU FUHDWLRQ DQG WKH HQWLWOHPHQWVWKHUHIURPDVZHOODVDFWVLQODZXQGHUWDNHQEHIRUH-DQXDU\VKDOOEHVXEMHFWWRWKH KLWKHUWRHIIHFWLYHSURYLVLRQV
7KHSURYLVLRQVRQODUJHVFDOHUHGXQGDQFLHVVKDOOQRWEHDSSOLHGLIDFWVLQODZWRWHUPLQDWHHPSOR\PHQW UHODWLRQVKLSVZHUHXQGHUWDNHQEHIRUH-DQXDU\
/DERXUSURYLVLRQVUHJXODWLRQV LVVXHGE\DFHQWUDODXWKRULW\EHIRUHWKHHIIHFWLYHGD\RIWKLV$FWXQGHU VHFWLRQV D DQG VHFRQG VHQWHQFH VKDOO UHPDLQ HIIHFWLYH XQWLO 'HFHPEHU
$ ZDJH ZKLFK DQ HPSOR\HU KDV GHWHUPLQHG RU DJUHHG LQ DQ HPSOR\PHQW FRQWUDFW RU LQ DQRWKHU DJUHHPHQWRULQDFROOHFWLYHEDUJDLQLQJDJUHHPHQWEHIRUH-DQXDU\PD\QRWEHUHGXFHGGXHWRD FKDQJHLQWKHSUHVFULEHGZHHNO\ZRUNLQJWLPHVHFWLRQD WKLVVKDOODOVRDSSO\WRDFRPSHQVDWRU\ZDJH DQGDQHPSOR\HH VRWKHUHQWLWOHPHQWVHVWDEOLVKHGRQWKHEDVLVRIKLVDYHUDJHKRXUO\HDUQLQJVLQWKHILUVW TXDUWHURI
7KHSHULRGIRUWDNLQJDGGLWLRQDOPDWHUQLW\OHDYHVKDOOIURPWKHHIIHFWLYHGDWHRIWKLV$FWEHUHJDUGHGDV WKHWLPHIRUWDNLQJSDUHQWDOOHDYH
6HFWLRQVDQGRI$FW1R&ROO HIIHFWLYHDVRI-DQXDU\
6HFWLRQ
6HFWLRQRI*RYHUQPHQW'HFUHH1R&ROOLPSOHPHQWLQJWKH/DERXU&RGHDQG6RPH 2WKHU $FWV DV DPHQGHG E\ *RYHUQPHQW 'HFUHH 1R &ROO VKDOO DSSO\ XQWLO WKH LVVXH RI D *RYHUQPHQW'HFUHHLPSOHPHQWLQJVHFWLRQ
6HFWLRQ
5LJKWVDQGGXWLHVREOLJDWLRQV HQVXLQJIURPHPSOR\PHQWUHODWLRQVKLSVRIKLWKHUWRHPSOR\HHVZKR EHFDPHSXEOLFVHUYDQWVXQGHUVHFWLRQV DQG VKDOOEHJRYHUQHG E\WKHODERXUODZSURYLVLRQV
1RWHV
1RWHVHFWLRQRIWKH&RPPHUFLDO&RGH
1RWHD$FWRQ3XEOLF6HUYDQWV1R&ROO
1RWHEVHFWLRQV DQGRIWKH$FWRQ3XEOLF6HUYDQWV
1RWH$FW1R&ROORQHQWHUSULVHVZLWKIRUHLJQFDSLWDOLQWHUHVWUHSHDOHGE\WKH &RPPHUFLDO&RGH
1RWH$FW1R&ROORQWKHFRQGLWLRQVDSSO\LQJWRDFWLYLWLHVRIRUJDQL]DWLRQVZLWKDQ LQWHUQDWLRQDOHOHPHQWLQWKH&]HFKDQG6ORYDN)HGHUDO5HSXEOLF
1RWHVHFWLRQVDQGRI$FW1R&ROORQWKHV\VWHPRIEDVLFDQGVHFRQGDU\VFKRROVWKH 6FKRROV$FW DVDPHQGHG
1RWHDVHFWLRQ RIWKH$FWRQ:DJHV5HPXQHUDWLRQIRU6WDQGE\DQG$YHUDJH(DUQLQJV1R &ROO
1RWHVHFWLRQ RI$FW1R&ROOFRQFHUQLQJVSHFLDODOORZDQFHVIRUPLQHUVDVDPHQGHG
1RWHUHSHDOHG
1RWHUHSHDOHG
1RWHVHFWLRQRI$FW1R&ROORQSURWHFWLRQIURPDOFRKROLVPDQGRWKHUDGGLFWLRQV
1RWHUHSHDOHG
1RWHVHFWLRQRIWKH&LYLO3URFHGXUH&RGH1R&ROODVDPHQGHG
1RWHVHFWLRQ RI'HFUHH1R&ROOUHSHDOHGE\'HFUHH1R&ROO
1RWHDVHFWLRQD RIWKH&ULPLQDO&RGH
1RWHE'HFUHH1R&ROO 1RWHF'HFUHH1R&ROO 1RWHUHSHDOHG
1RWHVHFWLRQRIWKH6WDWH(QWHUSULVH$FW1R&ROO$FW1R&ROOZDVUHSHDOHG E\$FW1R&ROO 'HFUHHRIWKH)HGHUDO0LQLVWU\RI)LQDQFHWKH&]HFK0LQLVWU\RI)LQDQFH3ULFHVDQG:DJHV DQGWKH6ORYDN0LQLVWU\RI)LQDQFH3ULFHVDQG:DJHVRQWKHIXQGIRUFXOWXUDODQGVRFLDO QHHGV1R&ROOUHSHDOHGE\'HFUHH1R&ROO
1RWH&ROOHFWLYH%DUJDLQLQJ$FW1R&ROODVDPHQGHG
1RWHHJVHFWLRQRIWKH&RPPHUFLDO&RGH VHFWLRQRIWKH7UDGHV/LFHQVLQJ$FW
1RWH$FWRQ&LYLOLDQ6HUYLFH1R&ROOUHSHDOHGE\$FW1R&ROO
1RWHD$FWRQ2IILFLDOVRI6HOI*RYHUQLQJ$UHDV1R&ROO
1RWHEVHFWLRQ DQG RIWKH$FWRQWKH$UPHG)RUFHVRIWKH&]HFK5HSXEOLF
1RWH6FKRROV$FW1R&ROO
8QLYHUVLWLHV$FW1R&ROO
1RWHDVHFWLRQRI'HFUHH1R&ROO
1RWHEVHFWLRQ RIWKH&]HFK1DWLRQDO%DQN$FW
1RWHFVHFWLRQRI$FW1R&ROO 1RWHUHSHDOHG 1RWHUHSHDOHG
1RWHHJVHFWLRQRIWKH&]HFKRVORYDN6WDWH%DQN$FW1R&ROOUHSHDOHGE\$FW1R &ROORQWKH&]HFK1DWLRQDO%DQN
1RWHD$FWRQ&HUWDLQ0HDVXUHV5HODWLQJWR3URWHFWLRQRI3XEOLF,QWHUHVW1R&ROODV DPHQGHG
1RWHEVHFWLRQ RI*RYHUQPHQW'HFUHH1R&ROO
1RWHUHSHDOHG 1RWHUHSHDOHG
1RWHHJ&RPPHUFLDO&RGH
%DQNUXSWF\DQG&RPSRVLWLRQ$FW1R&ROODVDPHQGHG
1RWHVHFWLRQ ILUVWVHQWHQFH RIWKH(PSOR\HHV 6LFNQHVV,QVXUDQFH$FW1R&ROODV DPHQGHG
1RWHDHJ'HFUHH1R&ROO
1RWHEHJ'HFUHH1R&ROODVDPHQGHG 1RWHF$FW1R&ROODVDPHQGHG
1RWHGHJ$FW1R&ROODVDPHQGHG 'HFUHH1R&ROO
1RWHH'HFUHH1R&ROO
1RWHI*XLGHOLQHVFRQFHUQLQJWKH3URYLVLRQRI3URWHFWLYH%HYHUDJHV 1RWHJHJ'HFUHH1R&ROO
'HFUHH1R&ROODVDPHQGHG
1RWHK$FW1R&ROODVDPHQGHG
1RWHL'HFUHH1R&ROO
1RWHM'HFUHH1R&ROODVDPHQGHG
*XLGHOLQHVFRQFHUQLQJ+\JLHQLF5HTXLUHPHQWVIRU6WDWLRQHU\0DFKLQHU\
1RWHN$FW1R&ROODVDPHQGHG
1RWHOHJ$FW1R&ROODVDPHQGHG $FW1R&ROODVDPHQGHG
$FW1R&ROODVDPHQGHG
1RWHUHSHDOHG
1RWH,QFRPH7D[HV$FW1R&ROODVDPHQGHG
$GPLQLVWUDWLRQRI7D[HV$FW1R&ROODVDPHQGHG
1RWH6RFLDO6HFXULW\DQG6WDWH(PSOR\PHQW3ROLF\&RQWULEXWLRQV$FW1R&ROODV DPHQGHG
1RWH*HQHUDO+HDOWK,QVXUDQFH&RQWULEXWLRQV$FW1R&ROODVDPHQGHG
1RWH$FWRQ&LWL]HQV $VVRFLDWLRQ1R&ROO
1RWHVHFWLRQRIWKH&LYLO&RGH1R&ROO
$FWRQWKH3URWHFWLRQRI3HUVRQDO'DWDLQ,QIRUPDWLRQ6\VWHPV1R&ROO
1RWHDVHFWLRQ[RIWKH&LYLO3URFHGXUH&RGH
1RWHEVHFWLRQRIWKH&RPPHUFLDO&RGH
1RWHUHSHDOHG
1RWHVHFWLRQRI$FW1R&ROORQ:DJHV5HPXQHUDWLRQIRU6WDQG%\DQG$YHUDJH (DUQLQJVDVDPHQGHG
1RWHUHSHDOHG
1RWH$FWRQ:DJHV5HPXQHUDWLRQIRU6WDQG%\DQG$YHUDJH(DUQLQJV1R&ROODV DPHQGHG
$FWRQ6DODU\DQG5HPXQHUDWLRQIRU6WDQG%\LQ%XGJHWDU\DQGLQVRPH2WKHU2UJDQL]DWLRQV 1R&ROODVDPHQGHG
1RWH7UDYHOOLQJ([SHQVHV5HLPEXUVHPHQW$FW1R&ROODVDPHQGHG
1RWHUHSHDOHG
1RWHHJWKH7UDGHV/LFHQVLQJ$FW
1RWHVHFWLRQ M SRLQW RIWKH,QFRPH7D[HV$FW
1RWHDVHFWLRQ RI$FW1R&ROO 1RWHHJVHFWLRQRIWKH&LYLO&RGH
1RWHVHFWLRQRI$FW1R&ROO