Blackberry 2012 Annual Report Download - page 67

Certain governments are also imposing requirements for the filtering of content available to end users. These requirements vary
across varying jurisdictions and compliance with these requirements may be costly. Conversely, a failure to comply could result in
adverse publicity, a ban on the Company’s products and services as well as other regulatory sanctions.
The Company’s future success depends on its continuing ability to attract new personnel and retain existing key
personnel, the loss of any of whom could adversely impact its business.
The Company’s success is largely dependent on its continuing ability to identify, attract, develop, motivate and retain skilled
employees, including members of its executive team. This is particularly the case in emerging markets where the Company does not
have an existing presence. Competition for highly skilled management, technical, research and development and other employees is
intense and increasing in the wireless communications industry. The Company’s restructuring activities (including headcount
reductions relating to its Cost Optimization Program and continuing efforts to streamline its operations and increase efficiency
through its CORE program), the recent governance changes, the challenges faced by the Company over the past fiscal year relating to
delays in new product introductions, loss of market share, the substantial decline in the Company’s share price (particularly for those
employees for whom equity-based compensation has been a key element of their compensation), the perception of the effects of
competition on the Company’s future prospects, and other factors, may impact on the Company’s ability to attract and retain
employees. None of the Company’s executive officers or key employees is bound by an employment agreement for any specific term.
The Company does not maintain key-person life insurance policies on any of its employees. The Company’s restructuring activities
and general loss of key employees could disrupt operations, impair the Company’s ability to compete effectively, impact the
Company’s ability to successfully execute its strategies (including the transition to its next generation BlackBerry 10 smartphones),
and affect its ability to address issues that may arise in the future as a result of a loss of institutional knowledge.
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