Harbin Electric (HRBN)

[Rawnoc]

DATE: NOVEMBER 2, 2011
SUBJECT: HARBIN ELECTRIC, INC. - CASH SETTLEMENT/ACCELERATION
OF EXPIRATIONS
OPTION SYMBOL: HRBN
DATE: 11/2/2011
* * * UPDATE * * *
NOTE: OCC has been informed by DTC that the paying agent has not yet funded DTC for
the merger consideration of $24.00 cash. Consequently, OCC will delay settlement of
HRBN exercise/assignment activity until confirmation is received that the cash
consideration has been paid.
On October 29, 2011, Shareholders of Harbin Electric, Inc. (HRBN) voted concerning the proposed
merger with Tech Full Electric Acquisition, Inc., a wholly owned subsidiary of Tech Full Electric Company
Limited. The merger was approved and subsequently consummated on November 1, 2011. As a result,
each existing HRBN Common Share will be converted into the right to receive $24.00 net cash per share.
CONTRACT ADJUSTMENT
DATE: November 2, 2011
NEW DELIVERABLE
PER CONTRACT: $2,400.00 ($24.00 x 100)
Settlement: Delayed
Settlement in HRBN options will take place through OCC’s cash settlement system. Settlement will be
accomplished by payment of the difference between the extended strike amount and the cash deliverable.
ACCELERATION OF EXPIRATIONS
Pursuant to OCC Rule 807, equity stock option contracts whose deliverables are adjusted to call for cashonly
delivery will be subject to an acceleration of the expiration dates for outstanding option series. (See
OCC Information Memo 23707) Additionally, the exercise by exception (ex by ex) threshold for expiring
series will be $.01 in all account types.
All series of Harbin Electric, Inc. options whose expiration dates are after 11-19-2011 will have their
expiration dates advanced to 11-19-2011. Expiration dates occurring before 11-19-2011 (e.g., Flex
options) will remain unchanged.
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All Harbin Electric, Inc. options will utilize a $.01 exercise threshold.
Option Symbols: HRBN
Existing Expiration: All months
New expiration date: 11-19-2011
Existing American-style Harbin Electric, Inc. options remain exercisable at the option of the holder prior to
their expiration. Exercised options will continue to settle in three business days.
DISCLAIMER
This Information Memo provides an unofficial summary of the terms of corporate events affecting listed
options or futures prepared for the convenience of market participants. OCC accepts no responsibility for
the accuracy or completeness of the summary, particularly for information which may be relevant to
investment decisions. Option or futures investors should independently ascertain and evaluate all
information concerning this corporate event(s).
The determination to adjust options and the nature of any adjustment is made by a panel of The OCC
Securities Committee pursuant to OCC By-Laws, Article VI, Sections 11 and 11A. The adjustment panel is
comprised of representatives from OCC and each exchange which trades the affected option. The
determination to adjust futures and the nature of any adjustment is made by OCC pursuant to OCC By-
Laws, Article XII, Sections 3, 4, or 4A, as applicable. For both options and futures, each adjustment
decision is made on a case by case basis. Adjustment decisions are based on information available at the
time and are subject to change as additional information becomes available or if there are material
changes to the terms of the corporate event(s) occasioning the adjustment.
ALL CLEARING MEMBERS ARE REQUESTED TO IMMEDIATELY ADVISE ALL BRANCH OFFICES
AND CORRESPONDENTS ON THE ABOVE.
Questions regarding this memo can be addressed to Member Services at [phone]. Within Canada
call [phone].
CATEGORY: CONTRACT ADJUSTMENT
CATEGORY: CONTRACT ADJUSTMENT
For questions regarding this memo, call 1-888-OPTIONS or email [e-mail].