Black & Decker 2013 Annual Report Download - page 89


GHWHUPLQHGXQGHUWKHWHUPVRIWKHFDSSHGFDOOWUDQVDFWLRQV$VDUHVXOWWKHGLOXWLRQPLWLJDWLRQXQGHUWKHFDSSHGFDOOWUDQVDFWLRQV
ZLOOEHOLPLWHGEDVHGRQVXFKFDSSHGYDOXH6HH1RWH-&DSLWDO6WRFN2WKHU(TXLW\$UUDQJHPHQWVIRUIXUWKHUGHWDLOVRQWKH
FDSSHGFDOOWUDQVDFWLRQV
&RQYHUWLEOH3UHIHUUHG8QLWV
,Q1RYHPEHUWKH&RPSDQ\LVVXHG&RQYHUWLEOH3UHIHUUHG8QLWVWKH³&RQYHUWLEOH3UHIHUUHG8QLWV´HDFKZLWKD
VWDWHGDPRXQWRI7KH&RQYHUWLEOH3UHIHUUHG8QLWVDUHLQLWLDOO\FRPSULVHGRIDRUXQGLYLGHGEHQHILFLDORZQHUVKLS
LQDSULQFLSDODPRXQWMXQLRUVXERUGLQDWHGQRWHWKH³1RWH´DQGD3XUFKDVH&RQWUDFWWKH³3XUFKDVH&RQWUDFW´REOLJDWLQJ
KROGHUVWRSXUFKDVHRQHVKDUHVXEMHFWWRDGMXVWPHQWXQGHUFHUWDLQFLUFXPVWDQFHVLIKROGHUVHOHFWWRVHWWOHWKHLU3XUFKDVH&RQWUDFWV
HDUO\RIWKH&RPSDQ\¶V6HULHV%3HUSHWXDO&XPXODWLYH&RQYHUWLEOH3UHIHUUHG6WRFNWKH³&RQYHUWLEOH3UHIHUUHG6WRFN´
7KH&RPSDQ\UHFHLYHGPLOOLRQLQFDVKSURFHHGVIURPWKH&RQYHUWLEOH3UHIHUUHG8QLWVRIIHULQJQHWRIXQGHUZULWLQJIHHV
7KHVHSURFHHGVZHUHXVHGWRUHGHHPDOORIWKH&RPSDQ\¶VRXWVWDQGLQJ)L[HG5DWH)ORDWLQJ5DWH-XQLRU6XERUGLQDWHG
'HEW6HFXULWLHVGXHDWDSULFHRIPLOOLRQWRFRQWULEXWHPLOOLRQWRD86SHQVLRQSODQWRLPSURYHWKHIXQGHG
VWDWXVRIWKH&RPSDQ\¶VSHQVLRQREOLJDWLRQVWRIXQGWKHPLOOLRQFRVWRIWKHFDSSHGFDOOWUDQVDFWLRQDVPRUHIXOO\GHVFULEHG
EHORZDQGWKHUHPDLQGHUWRUHGXFHRXWVWDQGLQJVKRUWWHUPERUURZLQJVDQGIRURWKHUJHQHUDOFRUSRUDWHSXUSRVHV
3XUFKDVH&RQWUDFWV
(DFK3XUFKDVH&RQWUDFWREOLJDWHVWKHKROGHUWRSXUFKDVHRQWKHHDUOLHURIL1RYHPEHUWKH³3XUFKDVH&RQWUDFWVHWWOHPHQW
GDWH´RULLWKHWULJJHUHGHDUO\VHWWOHPHQWGDWHDVGHVFULEHGEHORZIRURQHQHZO\LVVXHGVKDUHVXEMHFWWRDGMXVWPHQW
XQGHUFHUWDLQFLUFXPVWDQFHVLIKROGHUVHOHFWWRVHWWOHWKHLU3XUFKDVH&RQWUDFWVHDUO\RI&RQYHUWLEOH3UHIHUUHG6WRFN$PD[LPXP
RIVKDUHVRI&RQYHUWLEOH3UHIHUUHG6WRFNPD\EHLVVXHGRQWKH3XUFKDVH&RQWUDFWVHWWOHPHQWGDWHUHVXOWLQJLQWRWDO
DGGLWLRQDOFDVKSURFHHGVWRWKH&RPSDQ\RIXSWRPLOOLRQ7KH1RWHVGHVFULEHGIXUWKHUEHORZDUHSOHGJHGDVFROODWHUDO
WRJXDUDQWHHWKHKROGHUV¶REOLJDWLRQVWRSXUFKDVH&RQYHUWLEOH3UHIHUUHG6WRFNXQGHUWKHWHUPVRIWKH3XUFKDVH&RQWUDFWV3XUFKDVH
&RQWUDFWKROGHUVPD\HOHFWWRVHWWOHWKHLUREOLJDWLRQVXQGHUWKH3XUFKDVH&RQWUDFWVHDUO\LQFDVKDWDQ\WLPHSULRUWRWKHVHFRQG
EXVLQHVVGD\LPPHGLDWHO\SUHFHGLQJWKH3XUFKDVH&RQWUDFWVHWWOHPHQWGDWHRUWKHWULJJHUHGHDUO\VHWWOHPHQWGDWHDVDSSOLFDEOH
VXEMHFWWRFHUWDLQH[FHSWLRQVDQGFRQGLWLRQV
8SRQHDUO\VHWWOHPHQWRIDQ\3XUFKDVH&RQWUDFWVH[FHSWLQFRQQHFWLRQZLWKD³IXQGDPHQWDOFKDQJH´RUWULJJHUHYHQWWKH&RPSDQ\
ZLOOGHOLYHUDQXPEHURIVKDUHVRI&RQYHUWLEOH3UHIHUUHG6WRFNHTXDOWRRIWKHQXPEHURI3XUFKDVH&RQWUDFWVWHQGHUHGIRU
HDUO\VHWWOHPHQW8SRQWKHRFFXUUHQFHRIDIXQGDPHQWDOFKDQJHKROGHUVRI3XUFKDVH&RQWUDFWVZLOOKDYHWKHULJKWVXEMHFWWRFHUWDLQ
H[FHSWLRQVDQGFRQGLWLRQVWRVHWWOHWKHLU3XUFKDVH&RQWUDFWVHDUO\DWRIWKHVHWWOHPHQWUDWHIRUWKH3XUFKDVH&RQWUDFWV
+ROGHUVRIWKH3XUFKDVH&RQWUDFWVDUHSDLGFRQWUDFWDGMXVWPHQWSD\PHQWV³FRQWUDFWDGMXVWPHQWSD\PHQWV´DWDUDWHRISHU
DQQXPSD\DEOHTXDUWHUO\LQDUUHDUVRQ)HEUXDU\0D\$XJXVWDQG1RYHPEHURIHDFK\HDUFRPPHQFLQJ)HEUXDU\
7KHPLOOLRQSUHVHQWYDOXHRIWKHFRQWUDFWDGMXVWPHQWSD\PHQWVUHGXFHG6KDUHRZQHUV¶(TXLW\DWLQFHSWLRQ$VHDFK
TXDUWHUO\FRQWUDFWDGMXVWPHQWSD\PHQWLVPDGHWKHUHODWHGOLDELOLW\ZLOOEHUHOLHYHGZLWKWKHGLIIHUHQFHEHWZHHQWKHFDVKSD\PHQW
DQGWKHSUHVHQWYDOXHRIWKHFRQWUDFWDGMXVWPHQWSD\PHQWUHFRUGHGDVLQWHUHVWH[SHQVHDWLQFHSWLRQDSSUR[LPDWHO\PLOOLRQ
DFFUHWLRQRYHUWKHILYH\HDUWHUP$W'HFHPEHUWKHOLDELOLW\UHSRUWHGIRUWKHFRQWUDFWDGMXVWPHQWSD\PHQWVDPRXQWHGWR
PLOOLRQ7KH&RPSDQ\KDVWKHULJKWWRGHIHUWKHSD\PHQWRIFRQWUDFWDGMXVWPHQWSD\PHQWVXQWLOQRODWHUWKDQWKH3XUFKDVH
&RQWUDFWVHWWOHPHQWGDWHRUWKHWULJJHUHGHDUO\VHWWOHPHQWGDWHHDFKDVGHVFULEHGEHORZDVDSSOLFDEOH$Q\GHIHUUHGFRQWUDFW
DGMXVWPHQWSD\PHQWVZLOODFFUXHDGGLWLRQDOFRQWUDFWDGMXVWPHQWSD\PHQWVDWWKHUDWHRISHU\HDUXQWLOSDLGFRPSRXQGHG
TXDUWHUO\
&RQYHUWLEOH3UHIHUUHG6WRFN
:KHQLVVXHGIROORZLQJDVHWWOHPHQWRIWKH3XUFKDVH&RQWUDFWKROGHUVRIWKH&RQYHUWLEOH3UHIHUUHG6WRFNDUHHQWLWOHGWRUHFHLYH
FXPXODWLYHFDVKGLYLGHQGVDWWKHUDWHRISHUDQQXPRIWKHOLTXLGDWLRQSUHIHUHQFHSHUVKDUHRIWKH&RQYHUWLEOH3UHIHUUHG
6WRFN'LYLGHQGVRQWKH&RQYHUWLEOH3UHIHUUHG6WRFNZLOOEHSD\DEOHZKHQDVDQGLIGHFODUHGE\WKH&RPSDQ\¶VERDUGRIGLUHFWRUV
TXDUWHUO\LQDUUHDUVRQ)HEUXDU\0D\$XJXVWDQG1RYHPEHURIHDFK\HDU
)ROORZLQJWKHLVVXDQFHRI&RQYHUWLEOH3UHIHUUHG6WRFNXSRQVHWWOHPHQWRIDKROGHU¶V3XUFKDVH&RQWUDFWVDKROGHURI&RQYHUWLEOH
3UHIHUUHG6WRFNPD\DWLWVRSWLRQDWDQ\WLPHDQGIURPWLPHWRWLPHFRQYHUWVRPHRUDOORILWVRXWVWDQGLQJVKDUHVRI&RQYHUWLEOH
3UHIHUUHG6WRFNDVGHVFULEHGEHORZDWDFRQYHUVLRQUDWHRIVKDUHVRIWKH&RPSDQ\¶VFRPPRQVWRFNSHUVKDUHRI&RQYHUWLEOH
3UHIHUUHG6WRFNVXEMHFWWRFXVWRPDU\DQWLGLOXWLRQDGMXVWPHQWVZKLFKLVHTXLYDOHQWWRDQLQLWLDOFRQYHUVLRQSULFHRIDSSUR[LPDWHO\
SHUVKDUHRIFRPPRQVWRFN$W'HFHPEHUWKHFRQYHUVLRQUDWHRQWKH&RQYHUWLEOHV8QLWVGXHZDV
HTXLYDOHQWWRDFRQYHUVLRQSULFHVHWDWSHUFRPPRQVKDUH,IDIXQGDPHQWDOFKDQJHRFFXUVLQFHUWDLQFLUFXPVWDQFHVWKH
FRQYHUVLRQUDWHPD\EHDGMXVWHGE\DIXQGDPHQWDOFKDQJHPDNHZKROHSUHPLXP