,QVWDOODWLRQ


■+RZWR&KHFNWKLV,QVWDOODWLRQ3URFHGXUH

■&KHFNLQJEHIRUH,QVWDOODWLRQ

■7DEOHRI2SWLRQV&RPELQDWLRQ

■&KHFNLQJWKH&RQWHQWV

■8QSDFNLQJ

■,QVWDOODWLRQ3URFHGXUH


,QVWDOODWLRQ
  ,QVWDOODWLRQ!&KHFNLQJEHIRUH,QVWDOODWLRQ!3RLQWVWR1RWH%HIRUH,QVWDOODWLRQ


+RZWR&KHFNWKLV,QVWDOODWLRQ3URFHGXUH &KHFNLQJEHIRUH,QVWDOODWLRQ

'HVFULSWLRQRQWKHSDUWVLQFOXGHGLQWKHSDFNDJH





7KHUHIRUHLWLVGHVLUDEOHWRVHHWKHLQVWDOODWLRQVLWHLQDGYDQFHEHIRUHEULQJLQJLQWKHPDFKLQH
WRWKHXVHU
VVLWH


:KHQ8VLQJWKH3DUWV,QFOXGHGLQWKH3DFNDJH &KHFNLQJ3RZHU6XSSO\
7KHUHPXVWEHDSRZHURXWOHWSURSHUO\JURXQGHGDQGUDWHGDVLQGLFDWHGIRU








RIWKLVSURGXFW H[FOXVLYHXVHE\WKHPDFKLQH

&KHFNLQJWKH,QVWDOODWLRQ(QYLURQPHQW
7KHHQYLURQPHQWRIWKHLQVWDOODWLRQVLWHPXVWEHLQWKHUDQJHDVVKRZQEHORZ$YRLG


LQVWDOODWLRQQHDUWKHIDXFHWZDWHUERLOHUKXPLGL¿HURUUHIULJHUDWRU
3DFNDJHG,WHP
*XDUDQWHHGUDQJHIRURSHUDWLRQLPDJH7HPSHUDWXUHWRGHJ&+XPLGLW\WR
6\PEROVLQWKH,OOXVWUDWLRQ 


7KHPDFKLQHPXVWQRWEHLQVWDOOHGQHDUDVRXUFHRI¿UHRULQDQDUHDVXEMHFWWRGXVWRU
DPPRQLXPJDV,IWKHDUHDLVH[SRVHGWRGLUHFWUD\VRIWKHVXQSURYLGHFXUWDLQVWRWKH





6FUHZ &RQQHFWRU +DUQHVV ZLQGRZ
%HVXUHWRSURYLGHDGHTXDWHYHQWLODWLRQRIWKHURRPWRNHHSWKHZRUNHQYLURQPHQW
FRPIRUWDEOH5RRPRGRUFDQEHERWKHULQJZKHQUXQQLQJWKHPDFKLQHIRUDORQJWLPHLQD
SRRUO\YHQWLODWHGURRPDOWKRXJKWKHR]RQHDPRXQWJHQHUDWHGZKLOHUXQQLQJWKLVHTXLSPHQW
7LJKWHQ 5HPRYH &RQQHFW 'LVFRQQHFW 6HFXUH )UHH GRHVQRWKDUPKXPDQKHDOWK

&ODZ
3RLQWVWR1RWH%HIRUH,QVWDOODWLRQ





0RYLQJWKHKRVWPDFKLQHIURPDFRROSODFHWRDZDUPSODFHFDQJHQHUDWHFRQGHQVDWLRQ
,QVHUW 5HPRYH 3XVK 3OXJLQ 7XUQRQ
FDXVLQJPRLVWXUHEHDGVRQWKHPHWDOVXUIDFH8VLQJWKHKRVWPDFKLQHZKLOHWKHPDFKLQH
&KHFNLQJLQVWUXFWLRQ LVFRQGHQVHGFDQFDXVHLPDJHIDLOXUH7KHUHIRUHZKHQPRYLQJWKHPDFKLQHIURPDFRRO
SODFHWRDZDUPSODFHWRLQVWDOOXQSDFNWKHKRVWPDFKLQHDQGOHDYHLWIRUKRXUVRUPRUH
EHIRUHWKHLQVWDOODWLRQZRUNVRWKDWWKHPDFKLQHEHFRPHVXVHGWRWKHURRPWHPSHUDWXUH
:HLJKWRIWKHPDFKLQHLVDSSUR[NJWKHKRVWPDFKLQHZLWKFDVVHWWHV$')%H
&KHFN 9LVXDO&KHFN 6RXQG&KHFN VXUHWRSHUIRUPWKHZRUNLQDFFRUGDQFHZLWKWKHVWDQGDUGWRKDQGOHDKHDY\ORDGLQHDFK
FRXQWU\,QDGGLWLRQEHVXUHWRNHHSWKHPDFKLQHOHYHOHGZKHQOLIWLQJLW
)



,QVWDOODWLRQ!&KHFNLQJEHIRUH,QVWDOODWLRQ!3RLQWVWR1RWH%HIRUH,QVWDOODWLRQ
  ,QVWDOODWLRQ!&KHFNLQJEHIRUH,QVWDOODWLRQ!&KHFNLQJ,QVWDOODWLRQ6SDFH

&KHFNLQJ,QVWDOODWLRQ6SDFH ‡ :KHQWKH%RRNOHW)LQLVKHU0DQG%XIIHU3DVV8QLW.DUHDWWDFKHG

7KHIRRWRIWKLVHTXLSPHQWVKRXOGEHLQFRQWDFWZLWKWKHÀRRU7KLVHTXLSPHQWVKRXOGEH PPRUPRUH


NHSWRQWKHOHYHO PP
RUPRUH
7KHPDFKLQHPXVWEHDZD\IURPWKHZDOOE\PPRUPRUHWRVHFXUHDVXI¿FLHQWVSDFHWR
RSHUDWHWKHPDFKLQH

7KHIROORZLQJPHDVXUHVDUHIRUWKHLPDJH5811(5$'9$1&(&

PP
‡ :KHQQRRSWLRQDOSURGXFWVDUHDWWDFKHG

PPRUPRUH
PPRUPRUH PPRUPRUH

PP 
PP
RUPRUH PP
PP
RUPRUH PP
RUPRUH
PP

)
7RLQVWDOOWKHKRVWPDFKLQHLQVWDOOLWLQDZHOOYHQWLODWHGSODFH(VSHFLDOO\ZKHQWKHUHDUH

#
PXOWLSOHKRVWPDFKLQHVEHVXUHWRORFDWHWKHPDFKLQHZKHUHWKHPDFKLQHLVIUHHIURP
"


 :KHQWKH,QQHU)LQLVKHU)DQG&RS\7UD\-DUHDWWDFKHG GLUHFWH[KDXVWRIRWKHUPDFKLQHV%HVXUHWRNHHSWKHPDFKLQHDZD\IURPWKHDLULQOHWGXFW
!

ZKLFKLVXVHGIRUYHQWLODWLRQRIWKHURRP
PP
PP
RUPRUH
PPRUPRUH
PP

PP
RUPRUH PP

)



,QVWDOODWLRQ!&KHFNLQJEHIRUH,QVWDOODWLRQ!&KHFNLQJ,QVWDOODWLRQ6SDFH
  ,QVWDOODWLRQ!&KHFNLQJEHIRUH,QVWDOODWLRQ!&KHFNLQJWKH&RQWHQWV

&KHFNLQJWKH&RQWHQWV >@7RQHU&RQWDLQHU >@(QYHORSHSLFNXS >@(QYHORSHSLFNXS
<0&%N; 0RXQW; 0RXQW;
.RUHD2QO\ ,QFOXGHGLQ ,QFOXGHGLQ
>@+DQGOH&RYHUV; >@5LJKW/RZHU&RYHU; >@5HYHUVH7UDLOLQJ(GJH QRQ.RUHDPRGHOV QRQ.RUHDPRGHOV
*XLGH;
8VHRQO\ZKHQWKH&DVVHWWH ,QFOXGHGLQWKHPRGHO
3HGHVWDOLVQRWLQVWDOOHG ZLWK:D\8QLWRQO\

>@&RUG*XLGH;
992QO\
>@6HUYLFH%RRN+ROGHU[ >@6L]H3ODWHV; >@&OHDQLQJ3RVLWLRQ/DEHO

)




>@&RS\3URKLELWLRQ/DEHO >@+LQJH&DXWLRQ/DEHO >@+LQJH&DXWLRQ/DEHO 6LQJDSRUH/
$XVWUDOLD .RUHD 7DLZDQ

$PHULFD /DWLQ$PHULFD
&OHDQLQJ3RVLWLRQ/DEHO     
&RS\3URKLELWLRQ/DEHO     
+LQJH&DXWLRQ/DEHO     
+LQJH&DXWLRQ/DEHO     
7

µµLV121(

>@3RZHU6XSSO\&DEOH >@3RZHU6XSSO\&DEOH >@3RZHU6XSSO\&DEOH

9
9 9
$XVWUDOLD2QO\

)
$

&

&

'

&



SRZHUFDEOHWRPDWFKWKHORFDWLRQDUHDRILQVWDOODWLRQ



,QVWDOODWLRQ!&KHFNLQJEHIRUH,QVWDOODWLRQ!&KHFNLQJWKH&RQWHQWV
  ,QVWDOODWLRQ!7DEOHRI2SWLRQV&RPELQDWLRQ!&RPELQDWLRQRIWKH2SWLRQVLQVWDOOLQJWRWKH5LJKW6LGHRIWKH+RVW0DFKLQH


7DEOHRI2SWLRQV&RPELQDWLRQ
,

&KHFNWKHFRQWHQWVDJDLQVWWKHIROORZLQJ
6LQJDSRUH/
$XVWUDOLD .RUHD 7DLZDQ
/DWLQ$PHULFD &RPELQDWLRQRIWKH2SWLRQVLQVWDOOLQJWRWKH5LJKW6LGH


H0DQXDO      RIWKH+RVW0DFKLQH
6HWXS*XLGH     
%DVLF2SHUDWLRQ*XLGH     
8)5,,8VHU6RIWZDUH     

(
2

3
'UXP8QLW:DUUDQW\      ‡ )ROORZLQJWDEOHVKRZVWKHFRPELQDWLRQRIRSWLRQVWREHLQVWDOOHGDWWKHULJKWVLGHRIWKH
L:(0&&'      KRVWPDFKLQH
‡ 5HIHUWRWKHWDEOHEHORZWRLQVWDOOWKHRSWLRQVGHVFULEHGLQWKHWDEOH%HVXUHWRFKHFNWKH
L:0&&'      
FRPELQDWLRQEHIRUHWKHLQVWDOODWLRQZRUN
%HIRUH8VLQJ7KLV0DFKLQH     
$06.LW6RIWZDUH0DQXDO&'     
0DLQ8QLW:DUUDQW\     
1RWLFHIRU(QYHORSH      9RLFH2SHUDWLRQ 9RLFH*XLGDQFH &RS\&DUG





$WWDFKPHQWIRU037UD\ .LW 5HDGHU
7 8WLOLW\7UD\  1R 1R <HV
µµLV121( 9RLFH2SHUDWLRQ.LW 1R  1R <HV
,WLVQRWLQFOXGHGLQ0HUFKDQGLVH&RGH%$$ 9RLFH*XLGDQFH.LW 1R 1R  <HV
&RS\&DUG5HDGHU <HV <HV <HV 
7

<HVLQVWDOODWLRQLVDYDLODEOH 1RLQVWDOODWLRQLVQRWDYDLODEOH



,QVWDOODWLRQ!7DEOHRI2SWLRQV&RPELQDWLRQ!&RPELQDWLRQRIWKH2SWLRQVLQVWDOOLQJWRWKH5LJKW6LGHRIWKH+RVW0DFKLQH
  ,QVWDOODWLRQ!8QSDFNLQJ


8QSDFNLQJ 5HPRYHWKHWDSHVRQWKHH[WHULRURIWKHKRVWPDFKLQH

#
8QSDFNWKHKRVWPDFKLQH


(
-

2
‡ %HVXUHWRUHPRYHWKHWDSHVRQWKH&DVVHWWHDQG5HDGHULQODWHUVWHS
+

(
2

:KHQLQVWDOOLQJWKHKRVWPDFKLQHDQGWKHRSWLRQVDWWKHVDPHWLPHLQVWDOOWKHRSWLRQV
‡ %HVXUHQRWWRUHPRYHWKH6FDQQHU6\VWHP)L[DWLRQ6FUHZXQWLOLQVWDOODWLRQRIWKH
¿UVWE\IROORZLQJWKHSURFHGXUHEHORZIRUEHWWHUZRUNDELOLW\
VFDQQHU

,QVWDOOLQJWKH&DVVHWWH3HGHVWDO5HIHUWR,QVWDOODWLRQ3URFHGXUHIRUWKH&DVVHWWH3HGHVWDO
,QVWDOOLQJWKH'$')LILWLVDQRSWLRQ5HIHUWR,QVWDOODWLRQ3URFHGXUHIRUWKH'$')
,QVWDOOLQJWKHKRVWPDFKLQH
+

(
2

,QWKHFDVHRILQVWDOODWLRQLQ(XURSHDQUHJLRQUHIHUWRWKH3ULQWHU0RGHOIRU(XURSH
,QVWDOODWLRQ3URFHGXUH

+ROGLQJWKHKDQGOHVRQWKHOHIWDQGULJKWVLGHVOLIWWKHPDLQERG\GRZQIURPSDOOHW
'

(
-

‡ +HPD[LPXPZHLJKWRIWKHPDFKLQHLQFOXGLQJWKHDSSUR[NJWKHKRVWPDFKLQH
ZLWKFDVVHWWHV$')%HVXUHWRZRUNZLWKRUPRUHSHRSOHZKHQOLIWLQJLW )

‡ ,QDGGLWLRQEHVXUHWRNHHSWKHPDFKLQHOHYHOHGZKHQOLIWLQJLW
2SHQWKH$')DQGUHPRYHWKHFXVKLRQLQJPDWHULDO
‡ %HFDXVHWKHFHQWHURIJUDYLW\ZLOOEHSODFHGDWUHDUEHFDUHIXOQRWWRORRVHEDODQFH

6
ZKHQOLIWLQJLW

+DQGOH
+DQGOH
)


&ORVHWKH$')
7



,QVWDOODWLRQ!8QSDFNLQJ
  ,QVWDOODWLRQ!8QSDFNLQJ


2SHQWKH)URQW&RYHUDQGUHPRYHWKH'UXP8QLW3URWHFWLRQ0HPEHU 3UHVVWKH&DVVHWWH5HOHDVHEXWWRQDQGSXOORXWWKH&DVVHWWH
8

;
 5HPRYHWKH/LIWHU5HWDLQHU0HPEHUZKLOHURWDWLQJLWLQWKHGLUHFWLRQRIWKHDUURZ

) )

&ORVHWKH)URQW&RYHU


<


9

3UHVVWKH&DVVHWWH5HOHDVHEXWWRQSXOORXWWKH&DVVHWWHDQGUHPRYHWKHWDSHV
PDWHULDOIURPWKHFDVVHWWH


(
-

7RSUHYHQWWKHFDSIURPIDOOLQJRIIGRQRWUHPRYHWKHWDSHRIWKH:DVWH7RQHU&RQWDLQHU 5HWXUQWKH&DVVHWWHWRLWVRULJLQDOSRVLWLRQ

1RQUHPRYDEOH7DSH




,QVWDOODWLRQ!8QSDFNLQJ
  ,QVWDOODWLRQ!,QVWDOODWLRQ3URFHGXUH!,QVWDOOLQJWKH7RQHU&RQWDLQHU


,QVWDOODWLRQ3URFHGXUH 5HPRYHWKH3URWHFWLRQ&DSRIWKH7RQHU&RQWDLQHUZKLOHURWDWLQJLWLQWKHGLUHFWLRQRIWKH

7
DUURZ
,QVWDOOLQJWKH7RQHU&RQWDLQHU

2SHQWKH)URQW&RYHU


2SHQWKH7RQHU5HSODFHPHQW&RYHU

>



$OLJQWKHDUURZPDUNHGRQWKHULQJQHDUWKHHQGRIWKH7RQHU&RQWDLQHUZLWKWKHDUURZ

8


=
PDUNHGDWWKH7RQHU&RQWDLQHU,QOHWRIWKHKRVWPDFKLQHDVVKRZQLQWKH¿JXUH
8QSDFNWKH7RQHU&RQWDLQHU ,QVHUWWKH7RQHU&RQWDLQHUXQWLOLWVWRSV
#

+ROGWKH7RQHU&RQWDLQHUZLWKERWKKDQGVDQGVKDNHLWDSSUR[WLPHV

(
2

3
%HVXUHWRLQVHUWWKH7RQHU&RQWDLQHUKRUL]RQWDOO\ZKLOHSXWWLQJKDQGRQWKHERWWRPRILW
XQWLODSSUR[KDOIRILWLVLQVHUWHG

)

)



,QVWDOODWLRQ!,QVWDOODWLRQ3URFHGXUH!,QVWDOOLQJWKH7RQHU&RQWDLQHU
  ,QVWDOODWLRQ!,QVWDOODWLRQ3URFHGXUH!6HWWLQJWKH(QYLURQPHQW+HDWHU6ZLWFK

6HWWLQJWKH(QYLURQPHQW+HDWHU6ZLWFK
&ORVHWKH7RQHU5HSODFHPHQW&RYHU
?

5HSHDWVWHSVWRWRLQVWDOOWKH7RQHU&RQWDLQHURIHDFKFRORULQWKHVDPHZD\
&ORVHWKH)URQW&RYHU

(
2

3
7KLVZRUNLVQHFHVVDU\RQO\LIWKH(QYLUQPHQW+HDWHU6ZLWFKLVLQFOXGHG

6FDQQHU,QVWDOODWLRQ &KHFNWKDWWKH(QYLURQPHQW+HDWHU6ZLWFKLV21:KHQLWLV2))WXUQLW21

5HPRYHWKH6FDQQHU6\VWHP)L[DWLRQ6FUHZV


(
2

%HVXUHWRNHHSWKH6FDQQHU6\VWHP)L[DWLRQ6FUHZVLQDVDIHSODFHIRUPRYLQJWKH
PDFKLQH

[






,QVWDOODWLRQ!,QVWDOODWLRQ3URFHGXUH!6HWWLQJWKH(QYLURQPHQW+HDWHU6ZLWFK
  ,QVWDOODWLRQ!,QVWDOODWLRQ3URFHGXUH!,QVWDOOLQJWKH2WKHUV

7XUQLQJ21WKH3RZHU ,QVWDOOLQJWKH2WKHUV

&RQQHFWWKHSRZHUSOXJWRWKHRXWOHW ,QWKHFDVHRIQRWLQVWDOOLQJWKH&DVVHWWH3HGHVWDOLQVWDOOWKH5LJKW/RZHU&RYHU



5HPRYHWKH3URWHFWLRQ6KHHWRQWKH&RQWURO3DQHO
7XUQ21WKHPDLQSRZHUVZLWFK
+

(
2

‡ 7RQHUVXSSO\DQGLQLWLDOL]DWLRQRIWKH'HYHORSLQJ$VVHPEO\DQGWKH'UXPDUHDXWRPDWLFDOO\
SHUIRUPHG
‡ :KHQWRQHUVXSSO\LVFRPSOHWHGWKHRSHUDWLRQVWRSV$SSUR[PLQXWHV
‡ ,WLVSRVVLEOHWRSHUIRUP³,QVWDOOLQJWKH2WKHUV´³6HFXULQJWKH+RVW0DFKLQH´DQG³6HWWLQJ
WKH&DVVHWWH´ZKLOHVXSSO\LQJWRQHU

([HFXWHWKHIROORZLQJ6HUYLFH0RGHWRPDNHWKH&DVVHWWH+HDWHUUHFRJQL]HG,Q6HUYLFH
0RGH/HYHO
‡ 6HOHFW&23,(5!237,21!86(5!&67+76:!³´
5,Q6HUYLFH0RGH/HYHO!&23,(5!237,21!&67FKHFNWKDWWKHYDOXHDSSURSULDWH

@
IRUWKHORFDWLRQLVVHOHFWHGIRU&67.6:(;(&.
,QVWDOOWKH+DQGOH&RYHUV

'
‡ &ODZHDFK

7XUQLQJ2))WKH0DLQ3RZHU &ODZ &ODZ

2SHQWKH6ZLWFK&RYHUDQGWXUQ2))WKHPDLQSRZHUVZLWFK


&KHFNWKDWWKHFRQWUROSDQHOGLVSOD\DQGWKHPDLQSRZHUODPSDUH2))DQGWKHQ
GLVFRQQHFWWKHSRZHUSOXJ [

&ODZ &ODZ

)



,QVWDOODWLRQ!,QVWDOODWLRQ3URFHGXUH!,QVWDOOLQJWKH2WKHUV
  ,QVWDOODWLRQ!,QVWDOODWLRQ3URFHGXUH!,QVWDOOLQJWKH2WKHUV


$I¿[WKH(QYHORSH3LFNXS0RXQW/DEHORIWKHDSSURSULDWHODQJXDJHRQWKH(QYHORSH3LFNXS ,QVWDOOWKH6HUYLFH%RRN+ROGHU

7
#

0RXQWDVVKRZQLQWKH¿JXUH8VHRQO\IRUHQYHORSHSLFNXS ‡ +RRNV

(
2

3
$WLQVWDOODWLRQEHVXUHWKDWDFOLFNVRXQGLVKHDUG

:
,QVWDOOWKH5HYHUVH7UDLOLQJ(GJH*XLGH

=
6

‡ &ODZV
,QVWDOOWKH&RUG*XLGH

8
[

&RUG*XLGH

)
)



,QVWDOODWLRQ!,QVWDOODWLRQ3URFHGXUH!,QVWDOOLQJWKH2WKHUV
  ,QVWDOODWLRQ!,QVWDOODWLRQ3URFHGXUH!$I¿[LQJWKH/DEHO

6HFXULQJWKH+RVW0DFKLQH $I¿[LQJWKH/DEHO
4

B
,

1
$I¿[WKHODEHOVDFFRUGLQJWRWKHORFDWLRQRYHUWKHH[LVWLQJRQHV


0RYHWKHPDLQERG\WRWKHLQVWDOODWLRQSRVLWLRQDQGVHFXUHLWLQSODFHE\WXUQLQJWKH ‡ &OHDQLQJ3RVLWLRQ/DEHO


DGMXVWHUVRIWKH&DVVHWWH3HGHVWDOZLWKDVFUHZGULYHU ‡ &RS\3URKLELWLRQ/DEHO
‡ +LQJH&DXWLRQ/DEHO&RORU,PDJH5HDGHU8QLW*
‡ +LQJH/DEHO&RORU,PDJH5HDGHU8QLW*
+

(
2

6HFXULQJRIWKHDGMXVWHULVQRWHDUWKTXDNHUHVLVWDQW

+LQJH&DXWLRQ/DEHO
2QO\IRU&RORU,PDJH5HDGHU8QLW*
&RS\3URKLELWLRQ
/DEHO

&OHDQLQJ
SRVLWLRQ/DEHO

>


+LQJH/DEHO
2QO\IRU&RORU,PDJH5HDGHU8QLW*

C


:


,QVWDOODWLRQ!,QVWDOODWLRQ3URFHGXUH!$I¿[LQJWKH/DEHO
  ,QVWDOODWLRQ!,QVWDOODWLRQ3URFHGXUH!6HWWLQJWKH&DVVHWWH

6HWWLQJWKH&DVVHWWH
&XWWKHSODFHVRIWKH6L]H3ODWHVZLWKQLSSHUV

7
&XW
+

(
2

7KHLOOXVWUDWLRQVVKRZWKHFDVHRIWKH&DVVHWWHDVDQH[DPSOH7KH&DVVHWWHFDQ
EHVHWLQWKHVDPHZD\

3UHVVWKH&DVVHWWH5HOHDVHEXWWRQSXOORXWWKH&DVVHWWH
+ROGWKHOHYHURIWKH6LGH*XLGH3ODWHDQGDGMXVWWKHSODWHWRWKHVSHFL¿HGVL]H
+ROGWKHOHYHURIWKH7UDLOLQJ(GJH*XLGH3ODWHDQGDGMXVWWKHSODWHWRWKHVSHFL¿HGVL]H

6LGH*XLGH3ODWH

5HDU(GJH*XLGH3ODWH/HYHU 6LGH*XLGH3ODWH/HYHU
)

6HWWKH6L]H3ODWHDFFRUGLQJWRWKHVL]HRISDSHUVEHLQJVHW

8
/XPSWKH6L]H3ODWHVQRWLQXVHWRJHWKHUDQGVWRUHWKHPDWWKHUHDU

5HDU(GJH*XLGH3ODWH


3ODFHSDSHUDQGRSHQWKHFRYHUDWLQVHUWLRQDUHDRIWKH6L]H3ODWH
6

3DSHU
&RYHU

)

&ORVHWKHFRYHUDWLQVHUWLRQDUHDRIWKH6L]H3ODWHDQGLQVHUWWKHFDVVHWWH
9

6HWWKHRWKHUFDVVHWWHLQWKHVDPHZD\
,QWKHFDVHWKDWWKH&DVVHWWH3HGHVWDOLVLQVWDOOHGVHWWKHFDVVHWWHVRILWLQWKHVDPHZD\
+

(
2

3DSHUVL]HVHWWLQJVDUHDXWRPDWLFDOO\UHFRJQL]HG
)



,QVWDOODWLRQ!,QVWDOODWLRQ3URFHGXUH!6HWWLQJWKH&DVVHWWH
  ,QVWDOODWLRQ!,QVWDOODWLRQ3URFHGXUH!,PDJH3RVLWLRQ$GMXVWPHQW!0DUJLQ$GMXVWPHQWVWVLGH

$XWR*UDGDWLRQ$GMXVWPHQW &DVVHWWH

3XOORXWWKHFDVVHWWH

'
&OHDQWKH&RS\ERDUG*ODVVVXUIDFHRIWKHPDLQERG\ &KHFNWKHYDOXHVRIWKHVFDOHRQWKH$GMXVWPHQW3ODWHV


3ODFH$$[RU/75VL]HSDSHULQWKHFDVVHWWH5HIHUWRWKHFDVVHWWHVHWWLQJ
6HOHFW6HWWLQJV5HJLVWUDWLRQ!$GMXVWPHQW0DLQWHQDQFH!$GMXVW,PDJH4XDOLW\!$XWR
$GMXVW*UDGDWLRQ!)XOO$GMXVWPHQW
6HOHFWWKHVRXUFHRISDSHUIRUWHVWSULQWDQGSUHVV2.
$IWHUWKDWIROORZWKHGLUHFWLRQRQWKHVFUHHQRIWKH&RQWURO3DQHO

,PDJH3RVLWLRQ$GMXVWPHQW
+

(
2

7KHVHFRQGVLGHRIWKHVLGHGFRS\PHQWLRQHGODWHUPHDQVWKHVHFRQGVLGHLQWKH
LPDJHIRUPDWLRQRUGHU
:LWKWKLVHTXLSPHQWWKHVHFRQGVLGHLQWKHLPDJHIRUPDWLRQRUGHUDWWKHWLPHRIVLGHG
FRS\SULQWLVHTXLYDOHQWWRWKH¿UVWVLGHRIWKHRULJLQDO

■0DUJLQ$GMXVWPHQWVWVLGH

"

"



/RRVHQWKH)L[DWLRQ6FUHZV

6
3ULQWIURPWKH&DVVHWWHDQGDQGFKHFNWKDWWKHOHIWHGJHPDUJLQLVZLWKLQPP


)HHGLQJGLUHFWLRQ
RISDSHU
LPDJH
/

)
4


,

<

&DVVHWWH

)
'


-

‡ $VWKHYDOXHRI&23,(5!$'-867!)(('$'-!$'-&LQ6HUYLFH0RGH/HYHOLV

LQFUHPHQWHGE\WKHOHIWHGJHPDUJLQLVGHFUHDVHGE\PP
7XUQ2))DQGWKHQ21WKHPDLQSRZHUVZLWFKWRHQDEOHWKHVHWWLQJYDOXH
3ULQWIURPWKH&DVVHWWHDQGFKHFNWKDWWKHOHIWHGJHPDUJLQLVZLWKLQPP
:ULWHGRZQWKHQHZDGMXVWPHQWYDOXHLQWKHVHUYLFHODEHO
‡ $'-&



,QVWDOODWLRQ!,QVWDOODWLRQ3URFHGXUH!,PDJH3RVLWLRQ$GMXVWPHQW!0DUJLQ$GMXVWPHQWVWVLGH
  ,QVWDOODWLRQ!,QVWDOODWLRQ3URFHGXUH!,PDJH3RVLWLRQ$GMXVWPHQW!0DUJLQ$GMXVWPHQWVWVLGH

0RYHWKH$GMXVWPHQW3ODWHVEDFNDQGIRUWKDFFRUGLQJWRWKHVFDOHYDOXHVFKHFNHGLQVWHS
7

$VWKH$GMXVWPHQW3ODWHLVPRYHGWRZDUGWKHUHDUE\VFDOHWKHOHIWHGJHPDUJLQLV 5HWXUQWKHFDVVHWWHWRLWVRULJLQDOSRVLWLRQ

9
GHFUHDVHGE\PP

(
2

3
:KHQWKHFDVVHWWHSRVLWLRQVDUHXQHYHQGXHWRWKHPHFKDQLFDODGMXVWPHQWDGMXVWWKHP
E\ORRVHQLQJWKHVFUHZDWOHIWVLGH
+

(
2

:KHQPRYLQJWKHVFDOHVEHVXUHWRPRYHWKHVDPHDPRXQWRIWKHYDOXHIRUWKH
SRLQWV

)

7LJKWHQWKH)L[DWLRQ6FUHZV
8

)

'

'


?


+

(
2

,ILQVWDOOLQJWRJHWKHUZLWKWKH&DVVHWWH3HGHVWDOSHUIRUPWKHHGJHPDUJLQDGMXVWPHQW
IRU&DVVHWWHDQGE\WKHVDPHVWHSDVWKH&DVVHWWH



,QVWDOODWLRQ!,QVWDOODWLRQ3URFHGXUH!,PDJH3RVLWLRQ$GMXVWPHQW!0DUJLQ$GMXVWPHQWVWVLGH
  ,QVWDOODWLRQ!,QVWDOODWLRQ3URFHGXUH!0DUJLQ$GMXVWPHQWQGVLGH!0XOWLSXUSRVH7UD\0DUJLQ$GMXVWPHQWQGVLGH

0DUJLQ$GMXVWPHQWQGVLGH ■0XOWLSXUSRVH7UD\0DUJLQ$GMXVWPHQWVWVLGHPHFKDQLFDO
DGMXVWPHQW
([HFXWHGXSOH[SULQWLQJIURPWKH&DVVHWWHDQGFKHFNWKDWWKHOHIWHGJHPDUJLQLVZLWKLQ


PP
6HWSDSHUVLQWKH0XOWLSXUSRVH7UD\


)HHGLQJGLUHFWLRQ 3ULQWIURPWKH0XOWLSXUSRVH7UD\DQGFKHFNWKDWWKHOHIWHGJHPDUJLQLVZLWKLQ
RISDSHU
PP
LPDJH
)HHGLQJGLUHFWLRQ
RISDSHU
/
LPDJH

/
)

,IWKHPDUJLQLVQRWZLWKLQWKHUDQJHFKDQJHWKHOHIWHGJHPDUJLQDGMXVWPHQWYDOXHIRUWKH
'

QGVLGHRIWKH&DVVHWWH

"


5
‡ $VWKHYDOXHRI6HUYLFH0RGH/HYHO&23,(5!$'-867!)(('$'-!$'-&5(LV
,IWKHPDUJLQLVQRWZLWKLQWKHUDQJHFKDQJHWKHOHIWHGJHPDUJLQDGMXVWPHQWYDOXHIRUWKH
LQFUHPHQWHGE\WKHOHIWHGJHPDUJLQLVGHFUHDVHGE\PP

#
QGVLGHRIWKH0XOWLSXUSRVH7UD\
(QWHUWKHYDOXHVDPHDVWKHOHIWHGJHPDUJLQDGMXVWPHQWYDOXHIRUWKHQGVLGHRIWKH
$VWKHYDOXHRI&23,(5!$'-867!)(('$'-!$'-0)LQ6HUYLFH0RGH/HYHOLV
&DVVHWWHWRWKHVLGHUHJLVWUDWLRQDGMXVWPHQWYDOXHIRUWKHQGVLGHRIWKH&DVVHWWH
LQFUHPHQWHGE\WKHOHIWHGJHPDUJLQLVGHFUHDVHGE\PP
‡ 6HUYLFH0RGH/HYHO&23,(5!$'-867!)(('$'-!$'-&5(
7XUQ2))DQGWKHQ21WKHPDLQSRZHUVZLWFKWRHQDEOHWKHVHWWLQJYDOXH
7XUQ2))DQGWKHQ21WKHPDLQSRZHUVZLWFKWRHQDEOHWKHVHWWLQJYDOXH
:ULWHGRZQWKHQHZDGMXVWPHQWYDOXHLQWKHVHUYLFHODEHO
([HFXWHGXSOH[SULQWLQJIURPWKH&DVVHWWHDQGFKHFNWKDWWKHOHIWHGJHPDUJLQLVZLWKLQ
‡ $'-0)
PP
,IWKHPDUJLQLVQRWZLWKLQWKHUDQJHFKDQJHWKHOHIWHGJHPDUJLQDGMXVWPHQWYDOXHIRUWKH
QGVLGHRIWKH&DVVHWWH
■0XOWLSXUSRVH7UD\0DUJLQ$GMXVWPHQWQGVLGH
‡ $VWKHYDOXHRI6HUYLFH0RGH/HYHO&23,(5!$'-867!)(('$'-!$'-&5(LV
LQFUHPHQWHGE\WKHOHIWHGJHPDUJLQLVGHFUHDVHGE\PP ([HFXWHGXSOH[SULQWLQJIURPWKH0XOWLSXUSRVH7UD\DQGFKHFNWKDWWKHOHIWHGJHPDUJLQ


:ULWHGRZQWKHQHZDGMXVWPHQWYDOXHLQWKHVHUYLFHODEHO IRUWKHQGVLGHLVZLWKLQ/ PP
‡ $'-&5(
)HHGLQJGLUHFWLRQ
‡ $'-&5( RISDSHU
*HWRXWIURPVHUYLFHPRGH LPDJH

/
)



,QVWDOODWLRQ!,QVWDOODWLRQ3URFHGXUH!0DUJLQ$GMXVWPHQWQGVLGH!0XOWLSXUSRVH7UD\0DUJLQ$GMXVWPHQWQGVLGH
  ,QVWDOODWLRQ!,QVWDOODWLRQ3URFHGXUH!0DUJLQ$GMXVWPHQWQGVLGH!/HDGLQJ(GJH0DUJLQ$GMXVWPHQWQGVLGH

■/HDGLQJ(GJH0DUJLQ$GMXVWPHQWQGVLGH
,IWKHPDUJLQLVQRWZLWKLQWKHUDQJHFKDQJHWKHOHIWHGJHPDUJLQDGMXVWPHQWYDOXHIRUWKH
'

QGVLGHRIWKH0XOWLSXUSRVH7UD\
([HFXWHGXSOH[SULQWLQJIURPWKH&DVVHWWHDQGFKHFNWKDWWKHOHDGLQJHGJHPDUJLQIRU
$VWKHYDOXHRI&23,(5!$'-867!)(('$'-!$'-0)5(LQ6HUYLFH0RGH/HYHOLV


WKHQGVLGHLV/ PP,IWKHPDUJLQLVQRWZLWKLQWKHUDQJHH[HFXWHWKH
LQFUHPHQWHGE\WKHOHIWHGJHPDUJLQLVGHFUHDVHGE\PP
DGMXVWPHQWE\IROORZLQJWKHSURFHGXUHEHORZ
7XUQ2))DQGWKHQ21WKHPDLQSRZHUVZLWFKWRHQDEOHWKHVHWWLQJYDOXH
:ULWHGRZQWKHQHZDGMXVWPHQWYDOXHLQWKHVHUYLFHODEHO /
‡ $'-0)5(
)HHGLQJGLUHFWLRQ
RISDSHU
■/HDGLQJ(GJH0DUJLQ$GMXVWPHQWVWVLGH
LPDJH

3ULQWIURPWKH&DVVHWWHDQGFKHFNWKDWWKHOHDGLQJHGJHPDUJLQLV/ PP


,IWKHPDUJLQLVQRWZLWKLQWKHUDQJHH[HFXWHWKHDGMXVWPHQWE\IROORZLQJWKHSURFHGXUH )

EHORZ
/ 6HOHFW6HUYLFH0RGH/HYHO!&23,(5!$'-867!)(('$'-!5(*'83

'
0DNHDGMXVWPHQWE\FKDQJLQJWKHVHWWLQJYDOXH$VWKHYDOXHLVLQFUHPHQWHGE\WKH
OHDGLQJHGJHPDUJLQLVGHFUHDVHGE\PP
)HHGLQJGLUHFWLRQ
RISDSHU
7XUQ2))21WKHPDLQSRZHUVZLWFKWRHQDEOHWKHVHWWLQJYDOXH
LPDJH :ULWHGRZQWKHQHZDGMXVWPHQWYDOXHLQWKHVHUYLFHODEHO
‡ 5(*'83

)

6HOHFW6HUYLFH0RGH/HYHO!&23,(5!$'-867!)(('$'-!5(*,67

'

0DNHDGMXVWPHQWE\FKDQJLQJWKHVHWWLQJYDOXH$VWKHYDOXHLVLQFUHPHQWHGE\WKH
OHDGLQJHGJHPDUJLQLVGHFUHDVHGE\PP
7XUQ2))21WKHPDLQSRZHUVZLWFKWRHQDEOHWKHVHWWLQJYDOXH
:ULWHGRZQWKHQHZDGMXVWPHQWYDOXHLQWKHVHUYLFHODEHO
‡ 5(*,67



,QVWDOODWLRQ!,QVWDOODWLRQ3URFHGXUH!0DUJLQ$GMXVWPHQWQGVLGH!/HDGLQJ(GJH0DUJLQ$GMXVWPHQWQGVLGH
  ,QVWDOODWLRQ!,QVWDOODWLRQ3URFHGXUH!&KHFNLQJWKH1HWZRUN&RQQHFWLRQ!&KHFNLQJE\WKH5HPRWH+RVW$GGUHVV

&KHFNLQJWKH1HWZRUN&RQQHFWLRQ ■2SHUDWLRQ3URFHGXUH8VLQJ3LQJ
■2YHUYLHZ

(
-

2
7RH[HFXWH3LQJFRPPDQGZLWKWKH:LQGRZV9LVWDLQVWDOOHG3&VHW2))WKH¿UHZDOORU
4





VHWWLQJLVSURSHUO\SHUIRUPHG H[HFXWH3LQJFRPPDQGIURPWKH:LQGRZV9LVWDLQVWDOOHG3&WRWKH+RVW0DFKLQH
,IWKHXVHU
VQHWZRUNHQYLURQPHQWLV,3;63;RU$SSOH7DONWKHUHLVQRQHHGWRFKHFNWKH
QHWZRUNHQYLURQPHQW
■&KHFNLQJWKH1HWZRUN&RQQHFWLRQ 6HOHFWWKHIROORZLQJ>$GGLWLRQDO)XQFWLRQV@!>&RQ¿JXUDWLRQ@!>1HWZRUN@!>7&3,3VHWWLQJ@


!>,3YVHWWLQJ@!>3,1*FRPPDQG@
(QWHUWKH,3DGGUHVVZLWKWKHQXPHULFNH\SDGRQWKH&RQWURO3DQHODQGSUHVV([HFXWH


(
-

%HVXUHWRXVHWKHQHWZRUNFDEOHZLWK&DWHJRU\HRUKLJKHU,QDGGLWLRQDVHDOHGW\SH NH\5HVSRQVHIURPWKHKRVWLVGLVSOD\HGLI3LQJFRPPDQGLVVXFFHHGHGZKLOHQR
673FDEOHLVUHFRPPHQGHG UHVSRQVHIURPWKHKRVWLVGLVSOD\HGLIIDLOHG

8VLQJWKHQRQVKLHOGW\SHFDQDIIHFWWKHSHULSKHUDOHOHFWULFDOHTXLSPHQWWKURXJKWKH
QHWZRUNFDEOH ■&KHFNLQJE\WKH5HPRWH+RVW$GGUHVV





LVHQDEOHGRUQRW
7XUQ2))WKHPDLQSRZHUVZLWFK
5HPRWHKRVWDGGUHVV,3DGGUHVVRI3&WHUPLQDOFRQQHFWHGUXQQLQJRQ7&3,3QHWZRUN


&RQQHFWWKHQHWZRUNFDEOHWRWKH+RVW0DFKLQHDQGWXUQ21WKHPDLQSRZHUVZLWFK
HQYLURQPHQWWKDWFRQQHFWVWRWKLVHTXLSPHQW
,QIRUPWKHV\VWHPDGPLQLVWUDWRUDWWKHLQVWDOODWLRQVLWHWKDWLQVWDOODWLRQRIWKH+RVW0DFKLQH
LVFRPSOHWHDQGWKHQDVNIRUWKHQHWZRUNVHWWLQJ
,QIRUPWKHV\VWHPDGPLQLVWUDWRUDERXWFKHFNLQJRIWKHQHWZRUNFRQQHFWLRQXVLQJ3LQJ


&RQ¿UPWKHUHPRWHKRVWDGGUHVVZLWKWKHV\VWHPDGPLQLVWUDWRU
+

(
2

1HWZRUNVHWWLQJFDQQRWEHH[HFXWHGXQOHVVORJJLQJLQDVDQDGPLQLVWUDWRU (QWHUWKHUHPRWHKRVWDGGUHVVWR3LQJ
 )DFWRU\GHIDXOWSDVVZRUGLVDVIROORZV ‡ 7KHQHWZRUNLVSURSHUO\FRQQHFWHGLIWKHPHVVDJHVD\5HVSRQVHIURPWKHKRVW
‡ 6\VWHPDGPLQLVWUDWLRQGLYLVLRQ,'
‡ 7KHQHWZRUNLVQRWSURSHUO\FRQQHFWHGLIWKHPHVVDJHVD\1RUHVSRQVHIURPWKHKRVW
‡ 6\VWHPDGPLQLVWUDWLRQSDVVZRUG
WKHUHIRUHH[HFXWHWKHIROORZLQJWURXEOHVKRRWLQJ


(
-

7RSHUIRUPWKHQHWZRUNVHWWLQJWKHIROORZLQJ$GGLWLRQDO)XQFWLRQVLWHPVPXVWEHVHW
21

‡ >$GGLWLRQDO)XQFWLRQV@!>&RQ¿JXUDWLRQ@!>1HWZRUN@!>&KDQJHQHWZRUNVHWWLQJV
FKHFNFRQQHFWLRQ@
‡ >$GGLWLRQDO)XQFWLRQV@!>&RQ¿JXUDWLRQ@!>1HWZRUN@!>7&3,36HWWLQJ@!>,3Y
VHWWLQJ@!>8VH,3Y@

7XUQ2))DQGWKHQ21WKHPDLQSRZHU



,QVWDOODWLRQ!,QVWDOODWLRQ3URFHGXUH!&KHFNLQJWKH1HWZRUN&RQQHFWLRQ!&KHFNLQJE\WKH5HPRWH+RVW$GGUHVV
  ,QVWDOODWLRQ!,QVWDOODWLRQ3URFHGXUH!6HWWLQJVWRHQDEOH$FFHVV0DQDJHPHQW6\VWHP1RUWK0LGGOH6RXWK$PHULFDRQO\

1HWZRUN7URXEOHVKRRWLQJ ■&KHFNLQJ1HWZRUN)XQFWLRQRQWKH0DLQ&RQWUROOHU
■&KHFNLQJ&RQQHFWLRQRIWKH1HWZRUN&DEOH


-


6HOHFW6HWWLQJV5HJLVWUDWLRQ!3UHIHUHQFHV!1HWZRUN!7&3,36HWWLQJV!,3Y6HWWLQJV!


3,1*FRPPDQGHQWHUWKH,3DGGUHVV³´ZLWKWKHQXPHULFNH\SDGDQGWKHQSUHVV



6WDUWNH\
■2SHUDWLRQ3URFHGXUH8VLQJ3LQJ :KHQ5HVSRQVHIURPWKHKRVWLVGLVSOD\HGQHWZRUNIXQFWLRQRIWKH0DLQ&RQWUROOHU
RSHUDWHVQRUPDOO\
‡ :KHQ1RUHVSRQVHIURPWKHKRVWLVGLVSOD\HGWKHQHWZRUNIXQFWLRQRIWKH0DLQ&RQWUROOHU
$VNWKHQHWZRUNDGPLQLVWUDWRUDWWKHXVHU¶VVLWHWRZULWHGRZQWKH,3DGGUHVVRIWKH3&WKDW
LVIDLOHG


LVFRQQHFWHGWRWKHQHWZRUN
‡ 5HSODFHWKH0DLQ&RQWUROOHUZLWKDSURSHUO\RSHUDWLQJRQHDQGFKHFNWKHFRQQHFWLRQ
>$GGLWLRQDO)XQFWLRQV@!>&RQ¿JXUDWLRQ@!>1HWZRUN@!>7&3,36HWWLQJ@!>,3YVHWWLQJ@!
>3LQJ&RPPDQG@DQGHQWHUWKH,3DGGUHVVRIWKH3&ZLWKWKHQXPHULFNH\SDGDQGSUHVV
([HFXWHNH\
‡ 7KHQHWZRUNLVSURSHUO\FRQQHFWHGLIWKHPHVVDJHVD\5HVSRQVHIURPWKHKRVW
6HWWLQJVWRHQDEOH$FFHVV0DQDJHPHQW6\VWHP
‡ ,IWKHPHVVDJHVD\1RUHVSRQVHIURPWKHKRVWFKHFNWKHIROORZLQJ
1RUWK0LGGOH6RXWK$PHULFDRQO\
+

(
2

7KH,3DGGUHVVRIWKH3&FDQEHFKHFNHGE\WKHIROORZLQJSURFHGXUH

H
K


6HOHFWWKHIROORZLQJRQD:LQGRZV3&6WDUW!3URJUDP!$FFHVVRU\!&RPPDQG 7KHIROORZLQJFRQGLWLRQVQHHGWREHVDWLV¿HGWRHQDEOH$FFHVV0DQDJHPHQW6\VWHP
3URPSWDQGHQWHU³LSFRQ¿J´DQGSUHVV(QWHUNH\WRGLVSOD\LQIRUPDWLRQRIWKH,3 ‡ /RJLQDSSOLFDWLRQVXSSRUWLQJ$06VXFKDV662+KDVEHHQVWDUWHG
DGGUHVV ‡ >8VH$&&(660$1$*(0(176<67(0@RI6HWWLQJV5HJLVWUDWLRQLVVHWWR>21@

■


A
-

(
-

2
%HVXUHWKDWWKH662+RIWKHORJLQVHUYLFHLVDOUHDG\VWDUWHG,IQRW$&&(66
6HOHFWWKHIROORZLQJ>$GGLWLRQDO)XQFWLRQV@!>&RQ¿JXUDWLRQ@!>1HWZRUN@!>7&3,36HWWLQJ@ 0$1$*(0(176<67(0ZLOOQRWEHGLVSOD\HGRQ>&KHFN'HYLFH&RQ¿JXUDWLRQ@


!>,3YVHWWLQJ@!>,3DGGUHVVVHWWLQJ@DQGZULWHGRZQWKHDGGUHVVLQWKH,3DGGUHVV¿HOG VFUHHQHYHQLIWKHVHWWLQJLVFKDQJHG
6HOHFWWKHIROORZLQJ>$GGLWLRQDO)XQFWLRQV@!>&RQ¿JXUDWLRQ@!>1HWZRUN@!>7&3,36HWWLQJ@
!>,3YVHWWLQJ@!>3LQJ&RPPDQG@DQGHQWHUWKH,3DGGUHVV
%HVXUHWRPDNHWKHIROORZLQJVHWWLQJWRHQDEOH$FFHVV0DQDJHPHQW6\VWHP
‡ 7KH,3DGGUHVVVSHFL¿HGLQWKH+RVW0DFKLQHLVFRUUHFWLIWKHPHVVDJHVD\5HVSRQVH
/RJLQDVDQDGPLQLVWUDWRU
IURPWKHKRVW
6HOHFW>6HWWLQJV5HJLVWUDWLRQ@!>0DQDJHPHQW6HWWLQJV@!>/LFHQVH2WKHU@!>8VH$&&(66
‡ ,IWKHPHVVDJHVD\1RUHVSRQVHIURPWKHKRVWFKHFNWKHIROORZLQJ
0$1$*(0(176<67(0@
6HOHFW>21@DQGSUHVV>2.@
+

(
2

:KHQVHWWLQJWKHDGGUHVVE\PDQXDOO\LQSXWVHWWKH6XEQHW0DVNE\IROORZLQJWKH 7XUQ2))DQGWKHQ21WKHPDLQSRZHU
LQVWUXFWLRQRIWKHDGPLQLVWUDWRU 3UHVV&RXQWHU&KHFN.H\DQGWKHQFKHFNWKDW$&&(660$1$*(0(176<67(0LV
GLVSOD\HGRQ>&KHFN'HYLFH&RQ¿JXUDWLRQ@VFUHHQ



,QVWDOODWLRQ!,QVWDOODWLRQ3URFHGXUH!6HWWLQJVWRHQDEOH$FFHVV0DQDJHPHQW6\VWHP1RUWK0LGGOH6RXWK$PHULFDRQO\
  ,QVWDOODWLRQ!&KHFNLQJEHIRUH,QVWDOODWLRQ!3RLQWVWR1RWH%HIRUH,QVWDOODWLRQ


+RZWR&KHFNWKLV,QVWDOODWLRQ3URFHGXUH &KHFNLQJEHIRUH,QVWDOODWLRQ

'HVFULSWLRQRQWKHSDUWVLQFOXGHGLQWKHSDFNDJH





7KHUHIRUHLWLVGHVLUDEOHWRVHHWKHLQVWDOODWLRQVLWHLQDGYDQFHEHIRUHEULQJLQJLQWKHPDFKLQH
WRWKHXVHU
VVLWH


:KHQ8VLQJWKH3DUWV,QFOXGHGLQWKH3DFNDJH &KHFNLQJ3RZHU6XSSO\
7KHUHPXVWEHDSRZHURXWOHWSURSHUO\JURXQGHGDQGUDWHGDVLQGLFDWHGIRU








RIWKLVSURGXFW H[FOXVLYHXVHE\WKHPDFKLQH

&KHFNLQJWKH,QVWDOODWLRQ(QYLURQPHQW
7KHHQYLURQPHQWRIWKHLQVWDOODWLRQVLWHPXVWEHLQWKHUDQJHDVVKRZQEHORZ$YRLG


LQVWDOODWLRQQHDUWKHIDXFHWZDWHUERLOHUKXPLGL¿HURUUHIULJHUDWRU
3DFNDJHG,WHP
*XDUDQWHHGUDQJHIRURSHUDWLRQLPDJH7HPSHUDWXUHWRGHJ&+XPLGLW\WR
6\PEROVLQWKH,OOXVWUDWLRQ 


7KHPDFKLQHPXVWQRWEHLQVWDOOHGQHDUDVRXUFHRI¿UHRULQDQDUHDVXEMHFWWRGXVWRU
DPPRQLXPJDV,IWKHDUHDLVH[SRVHGWRGLUHFWUD\VRIWKHVXQSURYLGHFXUWDLQVWRWKH





6FUHZ &RQQHFWRU +DUQHVV ZLQGRZ
%HVXUHWRSURYLGHDGHTXDWHYHQWLODWLRQRIWKHURRPWRNHHSWKHZRUNHQYLURQPHQW
FRPIRUWDEOH5RRPRGRUFDQEHERWKHULQJZKHQUXQQLQJWKHPDFKLQHIRUDORQJWLPHLQD
SRRUO\YHQWLODWHGURRPDOWKRXJKWKHR]RQHDPRXQWJHQHUDWHGZKLOHUXQQLQJWKLVHTXLSPHQW
7LJKWHQ 5HPRYH &RQQHFW 'LVFRQQHFW 6HFXUH )UHH GRHVQRWKDUPKXPDQKHDOWK

&ODZ
3RLQWVWR1RWH%HIRUH,QVWDOODWLRQ





0RYLQJWKHKRVWPDFKLQHIURPDFRROSODFHWRDZDUPSODFHFDQJHQHUDWHFRQGHQVDWLRQ
,QVHUW 5HPRYH 3XVK 3OXJLQ 7XUQRQ
FDXVLQJPRLVWXUHEHDGVRQWKHPHWDOVXUIDFH8VLQJWKHKRVWPDFKLQHZKLOHWKHPDFKLQH
&KHFNLQJLQVWUXFWLRQ LVFRQGHQVHGFDQFDXVHLPDJHIDLOXUH7KHUHIRUHZKHQPRYLQJWKHPDFKLQHIURPDFRRO
SODFHWRDZDUPSODFHWRLQVWDOOXQSDFNWKHKRVWPDFKLQHDQGOHDYHLWIRUKRXUVRUPRUH
EHIRUHWKHLQVWDOODWLRQZRUNVRWKDWWKHPDFKLQHEHFRPHVXVHGWRWKHURRPWHPSHUDWXUH
:HLJKWRIWKHPDFKLQHLVDSSUR[NJWKHKRVWPDFKLQHZLWKFDVVHWWHV$')%H
&KHFN 9LVXDO&KHFN 6RXQG&KHFN VXUHWRSHUIRUPWKHZRUNLQDFFRUGDQFHZLWKWKHVWDQGDUGWRKDQGOHDKHDY\ORDGLQHDFK
FRXQWU\,QDGGLWLRQEHVXUHWRNHHSWKHPDFKLQHOHYHOHGZKHQOLIWLQJLW
)



,QVWDOODWLRQ!&KHFNLQJEHIRUH,QVWDOODWLRQ!3RLQWVWR1RWH%HIRUH,QVWDOODWLRQ
  ,QVWDOODWLRQ!&KHFNLQJEHIRUH,QVWDOODWLRQ!&KHFNLQJ,QVWDOODWLRQ6SDFH

&KHFNLQJ,QVWDOODWLRQ6SDFH ‡ :KHQWKH%RRNOHW)LQLVKHU0DQG%XIIHU3DVV8QLW.DUHDWWDFKHG

7KHIRRWRIWKLVHTXLSPHQWVKRXOGEHLQFRQWDFWZLWKWKHÀRRU7KLVHTXLSPHQWVKRXOGEH PPRUPRUH


NHSWRQWKHOHYHO PP
RUPRUH
7KHPDFKLQHPXVWEHDZD\IURPWKHZDOOE\PPRUPRUHWRVHFXUHDVXI¿FLHQWVSDFHWR
RSHUDWHWKHPDFKLQH

7KHIROORZLQJPHDVXUHVDUHIRUWKHLPDJH5811(5$'9$1&(&

PP
‡ :KHQQRRSWLRQDOSURGXFWVDUHDWWDFKHG

PPRUPRUH
PPRUPRUH PPRUPRUH

PP 
PP
RUPRUH PP
PP
RUPRUH PP
RUPRUH
PP

)
7RLQVWDOOWKHKRVWPDFKLQHLQVWDOOLWLQDZHOOYHQWLODWHGSODFH(VSHFLDOO\ZKHQWKHUHDUH

#
PXOWLSOHKRVWPDFKLQHVEHVXUHWRORFDWHWKHPDFKLQHZKHUHWKHPDFKLQHLVIUHHIURP


 :KHQWKH,QQHU)LQLVKHU)DQG&RS\7UD\-DUHDWWDFKHG GLUHFWH[KDXVWRIRWKHUPDFKLQHV%HVXUHWRNHHSWKHPDFKLQHDZD\IURPWKHDLULQOHWGXFW
!

ZKLFKLVXVHGIRUYHQWLODWLRQRIWKHURRP
PP
PP
RUPRUH
PPRUPRUH
PP

PP
RUPRUH PP

)



,QVWDOODWLRQ!&KHFNLQJEHIRUH,QVWDOODWLRQ!&KHFNLQJ,QVWDOODWLRQ6SDFH
  ,QVWDOODWLRQ!7DEOHRI2SWLRQV&RPELQDWLRQ!&KHFNLQJWKH&RQWHQWV


7DEOHRI2SWLRQV&RPELQDWLRQ &KHFNLQJWKH&RQWHQWV

>@5LJKW/RZHU&RYHU; >@6HUYLFH%RRN+ROGHU[
&RPELQDWLRQRIWKH2SWLRQVLQVWDOOLQJWRWKH5LJKW6LGH >@+DQGOH&RYHUV;
8VHRQO\ZKHQWKH&DVVHWWH
RIWKH+RVW0DFKLQH 3HGHVWDOLVQRWLQVWDOOHG
+

(
2

‡ )ROORZLQJWDEOHVKRZVWKHFRPELQDWLRQRIRSWLRQVWREHLQVWDOOHGDWWKHULJKWVLGHRIWKH
KRVWPDFKLQH
‡ 5HIHUWRWKHWDEOHEHORZWRLQVWDOOWKHRSWLRQVGHVFULEHGLQWKHWDEOH%HVXUHWRFKHFNWKH
FRPELQDWLRQEHIRUHWKHLQVWDOODWLRQZRUN
>@6L]H3ODWHV; >@&OHDQLQJ3RVLWLRQ/DEHO >@&RS\3URKLELWLRQ/DEHO

9RLFH2SHUDWLRQ 9RLFH*XLGDQFH &RS\&DUG

)




.LW 5HDGHU
8WLOLW\7UD\  1R 1R <HV
9RLFH2SHUDWLRQ.LW 1R  1R <HV
9RLFH*XLGDQFH.LW 1R 1R  <HV
&RS\&DUG5HDGHU <HV <HV <HV 
7
>@+LQJH&DXWLRQ/DEHO >@+LQJH&DXWLRQ/DEHO >@3RZHU6XSSO\&DEOH
<HVLQVWDOODWLRQLVDYDLODEOH 1RLQVWDOODWLRQLVQRWDYDLODEOH

>@3RZHU6XSSO\&DEOH >@&RUG*XLGH; >@ 7RQHU&RQWDLQHU

$XVWUDOLD2QO\ <0&%N;
.RUHD2QO\

)
$

&

&

)
;


FDEOHWRPDWFKWKHORFDWLRQDUHDRILQVWDOODWLRQ



,QVWDOODWLRQ!7DEOHRI2SWLRQV&RPELQDWLRQ!&KHFNLQJWKH&RQWHQWV
  ,QVWDOODWLRQ!7DEOHRI2SWLRQV&RPELQDWLRQ!&KHFNLQJWKH&RQWHQWV

>@(QYHORSHSLFNXS >@'UXP8QLW<0&%N &'*XLGHV!
>@(QYHORSHSLFNXS
0RXQW; 0RXQW; ; &KHFNWKHFRQWHQWVDJDLQVWWKHIROORZLQJ
,QFOXGHGLQ ,QFOXGHGLQ
QRQ.RUHDPRGHOV QRQ.RUHDPRGHOV 6LQJDSRUH/
/DWLQ$PHULFD


H0DQXDO  
6HWXS*XLGH  
%DVLF2SHUDWLRQ*XLGH  
8)5,,8VHU6RIWZDUH  
'UXP8QLW:DUUDQW\  
L:(0&&'  
L:0&&'  
%HIRUH8VLQJ7KLV0DFKLQH  
$06.LW6RIWZDUH0DQXDO&'  
0DLQ8QLW:DUUDQW\  
1RWLFHIRU(QYHORSH  
$WWDFKPHQWIRU037UD\
7

µµLV121(
) ,WLVQRWLQFOXGHGLQ0HUFKDQGLVH&RGH%$$%$%





6LQJDSRUH/
/DWLQ$PHULFD


&OHDQLQJ3RVLWLRQ/DEHO  
&RS\3URKLELWLRQ/DEHO  
+LQJH&DXWLRQ/DEHO  
+LQJH&DXWLRQ/DEHO  
7

µµLV121(



,QVWDOODWLRQ!7DEOHRI2SWLRQV&RPELQDWLRQ!&KHFNLQJWKH&RQWHQWV
  ,QVWDOODWLRQ!8QSDFNLQJ


8QSDFNLQJ +ROGLQJWKHKDQGOHVRQWKHOHIWDQGULJKWVLGHVOLIWWKHPDLQERG\GRZQIURPSDOOHW

#
8QSDFNWKHKRVWPDFKLQH


(
-

2
‡ +HPD[LPXPZHLJKWRIWKHPDFKLQHLQFOXGLQJWKHDSSUR[NJWKHKRVWPDFKLQH
+

(
2

:KHQLQVWDOOLQJWKHKRVWPDFKLQHDQGWKHRSWLRQVDWWKHVDPHWLPHLQVWDOOWKHRSWLRQV ZLWKFDVVHWWHV$')%HVXUHWRZRUNZLWKRUPRUHSHRSOHZKHQOLIWLQJLW

¿UVWE\IROORZLQJWKHSURFHGXUHEHORZIRUEHWWHUZRUNDELOLW\
‡ ,QDGGLWLRQEHVXUHWRNHHSWKHPDFKLQHOHYHOHGZKHQOLIWLQJLW
‡ %HFDXVHWKHFHQWHURIJUDYLW\ZLOOEHSODFHGDWUHDUEHFDUHIXOQRWWRORRVHEDODQFH
,QVWDOOLQJWKH&DVVHWWH3HGHVWDO5HIHUWR,QVWDOODWLRQ3URFHGXUHIRUWKH&DVVHWWH3HGHVWDO
ZKHQOLIWLQJLW
,QVWDOOLQJWKH'$')LILWLVDQRSWLRQ5HIHUWR,QVWDOODWLRQ3URFHGXUHIRUWKH'$')
,QVWDOOLQJWKHKRVWPDFKLQH
+

(
2

,QWKHFDVHRILQVWDOODWLRQLQ(XURSHDQUHJLRQUHIHUWRWKH3ULQWHU0RGHOIRU(XURSH
,QVWDOODWLRQ3URFHGXUH

3XWGRZQWKHER[FRQWDLQLQJWKHGUXP
'

+DQGOH


(
-

‡ 3ODFHLWRQDÀDWVXUIDFH +DQGOH

‡ 'RQRWGURSRUWLOWLW

L


@




,QVWDOODWLRQ!8QSDFNLQJ
  ,QVWDOODWLRQ!8QSDFNLQJ


5HPRYHWKHWDSHVRQWKHH[WHULRURIWKHKRVWPDFKLQH 3UHVVWKH&DVVHWWH5HOHDVHEXWWRQDQGSXOORXWWKH&DVVHWWH
6

7
5HPRYHWKH/LIWHU5HWDLQHU0HPEHUZKLOHURWDWLQJLWLQWKHGLUHFWLRQRIWKHDUURZ


(
-

‡ %HVXUHWRUHPRYHWKHWDSHVRQWKH&DVVHWWHDQG5HDGHULQODWHUVWHS
‡ %HVXUHQRWWRUHPRYHWKH6FDQQHU6\VWHP)L[DWLRQ6FUHZXQWLOLQVWDOODWLRQRIWKH
VFDQQHU

)

5HWXUQWKH&DVVHWWHWRLWVRULJLQDOSRVLWLRQ

9
3UHVVWKH&DVVHWWH5HOHDVHEXWWRQSXOORXWWKH&DVVHWWHDQGUHPRYHWKHWDSHVPDWHULDO
IURPWKHFDVVHWWH
) 5HWXUQWKH&DVVHWWHWRLWVRULJLQDOSRVLWLRQ


(
-

7RSUHYHQWWKHFDSIURPIDOOLQJRIIGRQRWUHPRYHWKHWDSHRIWKH:DVWH7RQHU&RQWDLQHU

1RQUHPRYDEOH7DSH
L




,QVWDOODWLRQ!8QSDFNLQJ