2SHUDWLRQ'LJQLW\
6(59,&(3529,'(5$*5((0(17
7KLV6(59,&(3529,'(5$*5((0(17
³ $JUHHPHQW´
LVHQWHUHGLQWRWKLVBBBGD\
RIBBBBBBBB
³ (IIHFWLYH'DWH´
E\DQGEHWZHHQWKH&,7<2)$/$0('$DPXQLFLSDO
FRUSRUDWLRQ
³WKH&LW\´
DQG23(5$7,21',*1,7<D&DOLIRUQLDQRQSURILWFRUSRUDWLRQZKRVH DGGUHVVLV+DUULVRQ6WUHHW6XLWH2DNODQG&$
³ 3URYLGHU´
LQUHIHUHQFHWRWKH
IROORZLQJIDFWVDQGFLUFXPVWDQFHV
5(&,7$/6
$ 7KH&LW\LVDPXQLFLSDOFRUSRUDWLRQGXO\RUJDQL]HGDQGYDOLGO\ H[LVWLQJXQGHUWKHODZVRI WKH6WDWHRI&DOLIRUQLDZLWKWKHSRZHUWRFDUU\RQLWVEXVLQHVV DVLWLVQRZEHLQJFRQGXFWHGXQGHU WKHVWDWXWHVRIWKH6WDWHRI&DOLIRUQLDDQGWKH&KDUWHURIWKH&LW\ % 7KH &LW\ LV LQ QHHG RI WKH IROORZLQJ VHUYLFHV ,PSOHPHQWLQJ 3DU W Q H U I R U W K H & L W \ ¶ V *XDUDQWHHG,QFRPH3LORW3URJUDP&LW\VWDIILVVXHGDQ5)3RQ$XJXVWDQGDIWHUDVXEPLWWDO SHULRG RI GD\V UHFHLYHG WZR
WLPHO\ VXEPLWWHG SURSRVDOV6WDII UHYLHZHG WKH SURSRVDOV LQWHUYLHZHGTXDOLILHGILUPVDQGVHOHFWHGWKHVHUYLFHSURYLGHUWKDWEHVWPHHWVWKH&LW\¶VQHHGV & 3URYLGHUSRVVHVVHVWKHVNLOOH[SHULHQFHDELOLW\EDFNJURXQG FHUWLILFDWLRQDQGNQRZOHGJH WRSURYLGHWKHVHUYLFHVGHVFULEHGLQWKLV$JUHHPHQWRQWKHWHUPVDQGFRQGLWLRQVGHVFULEHGKHUHLQ ' :KHUHDV WKH &LW\ &RXQFLO DXWKRUL]HG WKH &LW\ 0DQDJHU WR H[HFXWH WKLV DJUHHPHQW RQ BBBBBBBBBBBBBBBBBBB
( 7KH&LW\DQG3URYLGHUGHVLUHWRHQWHULQWRDQDJUHHPHQWIRU2SH UDWLRQ'LJQLW\WRVHUYHDV WKH,PSOHPHQWLQJ3DUWQHUIRUWKH&LW\RI$ODPHGD¶V*XDUDQWHHG, QFRPH3LORW3URJUDPXSRQWKH WHUPVDQGFRQGLWLRQVKHUHLQ
$*5((0(17
12:7+(5()25(LQFRQVLGHUDWLRQRIWKHIRUJRLQJZKLFKDUHLQF RUSRUDWHGKHUHLQE\ UHIHUHQFHDQGIRUJRRGDQGYDOXDEOHFRQVLGHUDWLRQWKHUHFHLSWDQGDGHTXDF\RIZKLFKDUHKHUHE\ DFNQRZOHGJHGWKH&LW\DQG3URYLGHUDJUHHDVIROORZV
7(50
7KHWHUPRIWKLV$JUHHPHQWVKDOOFRPPHQFHRQWKHBBBBGD\RIBB BBBBBDQGVKDOO WHUPLQDWHRQWKHBBBGD\RIBBBBBBBBBBBBXQOHVVWHUPLQDWHGHDUOLHUDVVHWIRUWKKHUHLQ 7KHSDUWLHVPD\DJUHHWRH[WHQGWKHWHUPRIWKLV$JUHHPHQWRQ D PRQWKE\PRQWK EDVLV IRUXSWRRQHDGGLWLRQDO\HDU$Q\H[WHQVLRQVKDOOEHGRFXPHQW HGLQDVLJQHGDPHQGPHQW,QWKH HYHQWWKDWWKHSDUWLHVDJUHHWRH[WHQGWKH$JUHHPHQWDOOSURYLVLRQVRIWKH$JUHHPHQWVKDOOUHPDLQ XQFKDQJHG
6(59,&(672%(3(5)250('
3URYLGHUDJUHHVWRGRDOOQHFHVVDU\ZRUNDWLWVRZQFRVWDQGH[ SHQVHWRIXUQLVKDOOODERU WRROVHTXLSPHQWPDWHULDOVH[FHSWDVRWKHUZLVHVSHFLILHGDQG WRGRDOOQHFHVVDU\ZRUNLQFOXGHG
2SHUDWLRQ'LJQLW\
LQ([KLELW$DVUHTXHVWHG3URYLGHUDFNQRZOHGJHVWKDWWKHZRUN SODQ LQFOXGHGLQ ([KLELW$ LV WHQWDWLYHDQGGRHVQRWFRPPLWWKH&LW\WRUHTXHVW3URYLGHUWRSHUIRUPDOOWDVNVLQFOXGHGWKHUHLQ &203(16$7,21723529,'(5
D %\WKHWKGD\RIHDFKPRQWK3URYLGHUVKDOOVXEPLWWRWKH&LW\DQLQYRLF HIRUWKH WRWDODPRXQWRIZRUNGRQHWKHSUHYLRXVPRQWK7KHVHUHTXHVWVVKDOOEHSUHSDUHGE\3URYLGHUZLWK VXSSRUWLQJGRFXPHQWDWLRQ
E &LW\VKDOODSSURYHSD\PHQWUHTXHVWVQRWWRH[FHHGWKHWRWDOIXQ GLQJDPRXQWRIVL[ KXQGUHGWKRXVDQGGROODUV
DVGHVFULEHGLQWKHLWHPL]H GEXGJHWLQFOXGHGLQ([KLELW% 6XEVWDQWLDO FKDQJHV WR OLQH LWHPV ZLWKLQ WKH EXGJHW LQFOXGHG LQ ([KLELW % ZLOO UHTXLUH ZULWWHQ DSSURYDOIURPWKH&RPPXQLW\'HYHORSPHQW'LUHFWRURUWKHLUGHVLJ QHHZLWKLQILYH
EXVLQHVV
GD\VWRHQVXUHSURMHFWFRQWLQXLW\7KH&LW\WKURXJKWKH&RPPXQLW\'HYHORSPHQW'LUHFWRURUWKHLU GHVLJQHHUHWDLQVVROHDQGFRPSOHWHGLVFUHWLRQWRGHWHUPLQHZKHWKHUDFKDQJHWRDOLQHLWHPZLWKLQ WKHEXGJHWLV³VXEVWDQWLDO´
F ,QFRPSOLDQFHZLWKWKH$PHULFDQ5HVFXH3ODQ$FWIXQGLQJUHTXLUHPHQWVDOOIXQGV PXVWEHHQFXPEHUHGE\WKHHQGRIDQGVSHQWE\WKHHQGRI 7,0(,62)7+((66(1&(
3URYLGHUDQGWKH&LW\DJUHHWKDWWLPHLVRIWKHHVVHQFHUHJDUGL QJWKHSHUIRUPDQFHRIWKLV $JUHHPHQW
67$1'$5'2)&$5(
3URYLGHU DJUHHV WR SHUIRUP DOO VHUYLFHV KHUHXQGHU LQ D PDQQHU FRPPHQVXUDWH ZLWK WKH SUHYDLOLQJVWDQGDUGVRIOLNHSURIHVVLRQDOVRUVHUYLFHSURYLGHUVDVDSSOLFDEOHLQWKH6DQ)UDQFLVFR %D\$UHDDQGDJUHHVWKDWDOOVHUYLFHVVKDOOEHSHUIRUPHGE\TXD OLILHGDQGH[SHULHQFHGSHUVRQQHO ZKRDUHQRWHPSOR\HGE\WKH&LW\
,1'(3(1'(173$57,(6
3URYLGHUKHUHE\GHFODUHVWKDW3URYLGHULVHQJDJHGDVDQLQGHSHQGHQWEXVLQHVVDQG3URYLGHU DJUHHVWRSHUIRUPWKHVHUYLFHVDVDQLQGHSHQGHQWFRQWUDFWRU7KHPDQQHUDQGPHDQVRIFRQGXFWLQJ WKHVHUYLFHVDQGWDVNVDUHXQGHUWKHFRQWURORI3URYLGHUH[FHSW WRWKHH[WHQWWKH\DUHOLPLWHGE\ VWDWXWHUXOHRUUHJXODWLRQDQGWKHH[SUHVVWHUPVRIWKLV$JUHHPHQW1RFLYLOVHUYLFHVWDWXVRURWKHU ULJKW RI HPSOR\PHQW ZLOO EH DFTXLUHG E\ YLUWXH RI 3URYLGHU¶V VHUYLFHV 1RQH RI WKH EHQHILWV SURYLGHG E\ WKH &LW\ WR LWV HPSOR\HHV LQFOXGLQJ EXW QRW OLPLWHG WR XQHPSOR\PHQW LQVXUDQFH ZRUNHUV¶FRPSHQVDWLRQSODQVYDFDWLRQDQGVLFNOHDYHDUHDYDLODEOHIURPWKH&LW\WR3URYLGHULWV HPSOR\HHVRUDJHQWV'HGXFWLRQVVKDOOQRWEHPDGHIRUDQ\VWDWHRUIHGHUDOWD[HV),&$SD\PHQWV 3(56SD\PHQWVRURWKHUSXUSRVHVQRUPDOO\DVVRFLDWHGZLWKDQHP SOR\HUHPSOR\HHUHODWLRQVKLS IURP DQ\ FRPSHQVDWLRQ GXH WR 3URYLGHU 3D\PHQWV RI WKH DERYH LWHPV LI UHTXLUHG DUH WKH UHVSRQVLELOLW\RI3URYLGHU
,00,*5$7,215()250$1'&21752/$&7
,5&$
3URYLGHU DVVXPHV DQ\ DQG DOO UHVSRQVLELOLW\ IRU YHULI\LQJ WKH LGHQWLW\ DQG HPSOR\PHQW DXWKRUL]DWLRQRIDOORILWVHPSOR\HHVSHUIRUPLQJZRUNKHUHXQGHUSXUVXDQWWRDOODSSOLFDEOH,5&$
2SHUDWLRQ'LJQLW\
RURWKHUIHGHUDORUVWDWHUXOHVDQGUHJXODWLRQV3URYLGHUVKDOOLQGHPQLI\GHIHQGDQGKROGWKH&LW\ KDUPOHVV IURP DQG DJDLQVW DQ\ ORVV GDPDJH OLDELOLW\ FRVWV RU H[SHQVHV DULVLQJ IURP DQ\ QRQFRPSOLDQFHRIWKLVSURYLVLRQE\3URYLGHU
121',6&5,0,1$7,21
&RQVLVWHQW ZLWK WKH &LW\¶V SROLF\ DQG VWDWH DQG IHGHUDO ODZ WKD W KDUDVVPHQW DQG GLVFULPLQDWLRQDUHXQDFFHSWDEOHFRQGXFW3URYLGHUDQGLWVHPSOR\HHVFRQWUDFWRUVDQGDJHQWVVKDOO QRWKDUDVVRUGLVFULPLQDWHDJDLQVWDQ\MREDSSOLFDQW&LW\HPS OR\HHRUDQ\RWKHUSHUVRQRQWKH EDVLVRIDQ\NLQGRIDQ\VWDWXWRULO\
IHGHUDOVWDWHRUORFDO
SURWHFWHGFODVVLQFOXGLQJEXWQRWOLPLWHG
WR
UDFH UHOLJLRXV FUHHG FRORU QDWLRQDO RULJLQ DQFHVWU\ GLVDELOLW\ ERWK PHQWDO DQG SK\VLFDO
LQFOXGLQJ+,9DQG$,'6PHGLFDOFRQGLWLRQ
HJFDQFHU
JHQHWLFLQIRUPDWLRQPDULWDOVWDWXVVH[
JHQGHUJHQGHULGHQWLW\JHQGHUH[SUHVVLRQDJHVH[XDORULHQWDWLRQSUHJQDQF\SROLWLFDODIILOLDWLRQ PLOLWDU\DQGYHWHUDQVWDWXVRUOHJLWLPDWHXQLRQDFWLYLWLHV3URYLGHUDJUHHVWKDWDQ\YLRODWLRQRIWKLV SURYLVLRQVKDOOFRQVWLWXWHDPDWHULDOEUHDFKRIWKLV$JUHHPHQW
+2/'+$50/(66
D 7R WKH IXOOHVW H[WHQW SHUPLWWHG E\ ODZ 3URYLGHU VKDOO LQGHPQLI\ GHIHQG ZLWK
FRXQVHODFFHSWDEOHWRWKH&LW\
DQGKROGKDUPOHVVWKH&LW\LWV&LW\&RXQFLOERDUGVFRPPLVVLRQV RIILFLDOV HPSOR\HHV DJHQWV DQG YROXQWHHUV
³,QGHPQLWHHV´
IURP DQG DJDLQVW DQ\ DQG DOO ORVV
GDPDJHVOLDELOLW\REOLJDWLRQVFODLPVVXLWVMXGJPHQWVFRVWVDQGH[SHQVHVZKDWVRHYHULQFOXGLQJ UHDVRQDEOH DWWRUQH\¶V IHHV DQG FRVWV RI OLWLJDWLRQ ³&ODLPV´
DULVLQJ IURP RU LQ DQ\ PDQQHU
FRQQHFWHG WR 3URYLGHU¶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¶V REOLJD WLRQ WR GHIHQG ,QGHPQLWHHV
DVVHWIRUWKDERYH
LVOLPLWHGDVSURYLGHGLQ&DOLIRUQLD&LYLO&RGH6HFWLRQ F 3URYLGHU¶V REOLJDWLRQ WR LQGHPQLI\ GHIHQG DQG KROG KDUPOHVV ,QGHPQLWLHV VKDOO H[SUHVVO\VXUYLYHWKHH[SLUDWLRQRUHDUO\WHUPLQDWLRQRIWKLV$JUHHPHQW ,1685$1&(
D 2Q RU EHIRUH WKH FRPPHQFHPHQW RI WKH WHUPV RI WKLV $JUHHPHQW 3URYLGHU VKDOO IXUQLVKWKH&LW\¶V5LVN0DQDJHUZLWKFHUWLILFDWHVVKRZLQJWKHW \SHDPRXQWFODVVRIRSHUDWLRQV FRYHUHGHIIHFWLYHGDWHVDQGGDWHVRIH[SLUDWLRQRILQVXUDQFHFRYHUDJHLQFRPSOLDQFHZLWK6HFWLRQV E
WKURXJK
6XFKFHUWLILFDWHVZKLFKGRQRWOLPLW3URYLGHU¶VLQGHPQLILFD WLRQVKDOODOVR FRQWDLQVXEVWDQWLDOO\WKHIROORZLQJVWDWHPHQW
³6KRXOGDQ\RIWKHDERYHLQVXUDQFHFRYHUHGE\WKLVFHUWLILFDWH EH FDQFHOHGRUFRYHUDJHUHGXFHGEHIRUHWKHH[SLUDWLRQGDWHWKHUHRIWKH
2SHUDWLRQ'LJQLW\
LQVXUHUDIIRUGLQJFRYHUDJHVKDOOSURYLGHWKLUW\
GD\V¶DGYD QFH
ZULWWHQQRWLFHWRWKH&LW\RI$ODPHGD$WWHQWLRQ
5LVN0DQDJHU´
3URYLGHUVKDOOPDLQWDLQLQIRUFHDWDOOWLPHVGXULQJWKHSHUIRU PDQFHRIWKLV$JUHHPHQWDOO DSSURSULDWHFRYHUDJHRILQVXUDQFHUHTXLUHGE\WKLV$JUHHPHQWZLWKDQLQVXUDQFHFRPSDQ\OLFHQVHG WRRIIHULQVXUDQFHEXVLQHVVLQWKH6WDWHRI&DOLIRUQLDZLWKDF XUUHQW$0%HVW¶VUDWLQJRIQROHVV WKDQ$
9,,RU6WDQGDUG 3RRU¶V5DWLQJ
LIUDWHG
RIDWOHDVW% %%XQOHVVRWKHUZLVHDFFHSWDEOHWR
WKH&LW\3URYLGHUVKDOOGHOLYHUXSGDWHGLQVXUDQFHFHUWLILFDWHVWRWKH&LW\DWWKHDGGUHVVGHVFULEHG LQ6HFWLRQISULRUWRWKHH[SLUDWLRQRIWKHH[LVWLQJLQVXUD QFHFHUWLILFDWHIRUWKHGXUDWLRQRIWKH WHUP RI $JUHHPHQW (QGRUVHPHQWV QDPLQJ WKH &LW\ LWV &LW\ &RXQFLO ERDUGV FRPPLVVLRQV RIILFLDOV HPSOR\HHV DJHQWV DQG YROXQWHHUV DV DGGLWLRQDO LQVXUHG VKDOO EH VXEPLWWHG ZLWK WKH LQVXUDQFHFHUWLILFDWHV
BBBBBBBBBBBBB
3URYLGHU,QLWLDOV
E &29(5$*(5(48,5(0(176
3URYLGHUVKDOOPDLQWDLQLQVXUDQFHFRYHUDJHDQGOLPLWVDWOHDVWDVEURDGDV
:RUNHUV¶&RPSHQVDWLRQ
6WDWXWRU\FRYHUDJHDVUHTXLUHGE\WKH6WDWHRI&DOLIRUQLD
/LDELOLW\
&RPPHUFLDOJHQHUDOOLDELOLW\FRYHUDJHLQWKHIROORZLQJPLQLPXPOLPLWV
%RGLO\,QMXU\
HDFKRFFXUUHQFH
DJJUHJDWHDOORWKHU
3URSHUW\'DPDJH
HDFKRFFXUUHQFH
DJJUHJDWH
,IVXEPLWWHGFRPELQHGVLQJOHOLPLWSROLF\ZLWKSHURFFXUUHQFHOLPLWVLQWKH DPRXQWVRIDQGDJJUHJDWHOLPLWVLQWKHDPRXQWVRI ZLOOEH FRQVLGHUHGHTXLYDOHQWWR WKH UHTXLUHG PLQLPXP OLPLWV VKRZQ DERYH $GGLWLRQDO ,QVXUHG (QGRUVHPHQW QDPLQJ WKH &LW\ LWV &LW\ &RXQFLO ERDUGV FRPPLVVLRQV RIILFLDOVHPSOR\HHVDJHQWVDQGYROXQWHHUVLVUHTXLUHG
$XWRPRWLYH
&RPSUHKHQVLYH DXWRPRELOHOLDELOLW\FRYHUDJH
DQ\ DXWR
LQWKH IROORZLQJ
PLQLPXPOLPLWV
%RGLO\LQMXU\
HDFKRFFXUUHQFH
3URSHUW\'DPDJH
HDFKRFFXUUHQFH
RU
&RPELQHG6LQJOH/LPLW
HDFKRFFXUUHQFH
2SHUDWLRQ'LJQLW\
$GGLWLRQDO,QVXUHG(QGRUVHPHQWQDPLQJWKH&LW\LWV&LW\&RXQFLOERDUGV FRPPLVVLRQVRIILFLDOVHPSOR\HHVDJHQWVDQGYROXQWHHUVLVUHTXLUHG
3URIHVVLRQDO/LDELOLW\
3URIHVVLRQDOOLDELOLW\LQVXUDQFHZKLFKLQFOXGHVFRYHUDJHDSSURSULDWHIRUWKH SURIHVVLRQDO DFWV HUURUV DQG RPLVVLRQV RI 3URYLGHU¶V SURIHVVLR Q DQG ZRUN KHUHXQGHULQFOXGLQJEXWQRWOLPLWHGWRWHFKQRORJ\SURIHVVLRQDOOLDELOLW\HUURUVDQG RPLVVLRQV LI WKH VHUYLFHV EHLQJ SURYLGHG DUH WHFKQRORJ\EDVHGLQ WKH IROORZLQJ PLQLPXPOLPLWV
HDFKRFFXUUHQFH
7HFKQRORJ\SURIHVVLRQDOOLDELOLW\HUURUVDQGRPLVVLRQVVKDOOLQFOXGHRUEH HQGRUVHGWRLQFOXGHSURSHUW\GDPDJHOLDELOLW\FRYHUDJHIRUGDPDJHWRDOWHUDWLRQ RIORVVRIRUGHVWUXFWLRQRIHOHFWURQLFGDWDDQGRULQIRUPDWLRQ³SURSHUW\´RIWKH &LW\LQWKHFDUHFXVWRG\RUFRQWURORI3URYLGHU,IQRWFRYHUHGXQGHU3URYLGHU¶V OLDELOLW\SROLF\VXFK³SURSHUW\´FRYHUDJHRIWKH&LW\PD\EHHQGRUVHGRQWR 3URYLGHU¶V&\EHU/LDELOLW\3ROLF\DVFRYHUHGSURSHUW\DVIROORZV F\EHUOLDELOLW\
FRYHUDJHLQDQDPRXQWVXIILFLHQWWRFRYHUWKHIXOOUHSODFHPHQWYDOXHRIGDPDJHWR DOWHUDWLRQRIORVVRIRUGHVWUXFWLRQRIHOHFWURQLFGDWDDQGRULQIRUPDWLRQ ³SURSHUW\´RIWKH&LW\WKDWZLOOEHLQWKHFDUHFXVWRG\RUFRQWURORI3URYLGHU
$VWRFRPPHUFLDOJHQHUDOOLDELOLW\DQGDXWRPRELOHOLDELOLW\LQ VXUDQFHVXFKLQVXUDQFHZLOO SURYLGHWKDWLWFRQVWLWXWHVSULPDU\LQVXUDQFHZLWKUHVSHFWWRF ODLPVLQVXUHGE\VXFKSROLF\DQG H[FHSWZLWKUHVSHFWWROLPLWVWKDWLQVXUDQFHDSSOLHVVHSDUDWHO\WRHDFKLQVXUHGDJDLQVWZKRPFODLP LV PDGH RU VXLW LV EURXJKW 6XFK LQVXUDQFH LV QRW DGGLWLRQDO WR RU FRQWULEXWLQJ ZLWK DQ\ RWKHU LQVXUDQFHFDUULHGE\RUIRUWKHEHQHILWRIWKH&LW\
F 68%52*$7,21:$,9(5
3URYLGHUKHUHE\DJUHHVWRZDLYHULJKWVRIVXEURJDWLRQWKDWDQ\LQVXUHURI3URYLGHUPD\DFTXLUH IURP3URYLGHUE\YLUWXHRIWKHSD\PHQWRIDQ\ORVV3URYLGHUDJ UHHVWRREWDLQDQ\HQGRUVHPHQWWKDW PD\EHQHFHVVDU\WRDIIHFWWKLVZDLYHURIVXEURJDWLRQEXWWKLVSURYLVLRQDSSOLHVUHJDUGOHVVRIZKHWKHU WKH &LW\ KDV UHFHLYHG D ZDLYHU RI VXEURJDWLRQ HQGRUVHPHQW IURP WKH LQVXUHU 7KH :RUNHUV¶ &RPSHQVDWLRQSROLF\VKDOOEHHQGRUVHGZLWKDZDLYHURIVXEURJDW LRQLQIDYRURIWKH&LW\IRUDOOZRUN SHUIRUPHGE\3URYLGHULWVHPSOR\HHVDJHQWVDQGVXEFRQWUDFWRUV
G )$,/85(726(&85(
,I 3URYLGHU DW DQ\ WLPH GXULQJ WKH WHUP KHUHRI VKRXOG IDLO WR VHFXUH RU PDLQWDLQ WKH IRUHJRLQJLQVXUDQFHWKH&LW\VKDOOEHSHUPLWWHGWRREWDLQVXFKLQVXUDQFHLQ3URYLGHU¶VQDPHRUDV DQDJHQWRI3URYLGHUDQGVKDOOEHFRPSHQVDWHGE\3URYLGHUIRUWKHFRVWVRIWKHLQVXUDQFHSUHPLXPV DWWKHPD[LPXPUDWHSHUPLWWHGE\ODZDQGFRPSXWHGIURPWKHGDWH ZULWWHQQRWLFHLVUHFHLYHGWKDW WKHSUHPLXPVKDYHQRWEHHQSDLG
H $'',7,21$/,1685('6
2SHUDWLRQ'LJQLW\
7KH &LW\ LWV &LW\ &RXQFLO ERDUGV FRPPLVVLRQV RIILFLDOV HPS OR\HHV DJHQWV DQG YROXQWHHUVVKDOOEHQDPHGDVDGGLWLRQDOLQVXUHG
V
XQGHUDOOLQVXUDQFHFRYHUDJHVH[FHSWZRUNHUV¶
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¶VSROLF\VKDOOEHSU LPDU\DQGQRQFRQWULEXWRU\DQG ZLOOQRWVHHNFRQWULEXWLRQIURPWKH&LW\¶VLQVXUDQFHRUVHOILQ VXUDQFH$Q\DYDLODEOHLQVXUDQFH SURFHHGV EURDGHU WKDQ RU LQ H[FHVV RI WKH VSHFLILHG PLQLPXP LQVXUDQFH FRYHUDJH UHTXLUHPHQWV DQGRUOLPLWVVKDOOEHDYDLODEOHWRWKHDGGLWLRQDOLQVXUHG V
I 68)),&,(1&<2),1685$1&(
7KHLQVXUDQFHOLPLWVUHTXLUHGE\WKH&LW\DUHQRWUHSUHVHQWHGDVEHLQJVXIILFLHQWWRSURWHFW 3URYLGHU 3URYLGHU LV DGYLVHG WR FRQVXOW 3URYLGHU¶V LQVXUDQFH EURNHU WR GHWHUPLQH DGHTXDWH FRYHUDJHIRU3URYLGHU7KHFRYHUDJHDQGOLPLWVVKDOOEH
WK H PLQLPXPFRYHUDJHDQGOLPLWV
VSHFLILHG LQ WKLV $JUHHPHQW
RU
WKH EURDGHU FRYHUDJH DQG PD[LPXP OLPLWV RI WKH FRYHUDJH FDUULHGE\RUDYDLODEOHWR3URYLGHU
ZKLFKHYHULVJUHDWHU
&21)/,&72),17(5(67
3URYLGHUZDUUDQWVWKDWLWLVQRWDFRQIOLFWRILQWHUHVWIRU3U RYLGHUWRSHUIRUPWKHVHUYLFHV UHTXLUHGE\WKLV$JUHHPHQW3URYLGHUPD\EHUHTXLUHGWRILOOR XWDFRQIOLFWRILQWHUHVWIRUPLIWKH VHUYLFHVSURYLGHGXQGHUWKLV$JUHHPHQWUHTXLUH3URYLGHUWRPDNHFHUWDLQJRYHUQPHQWDOGHFLVLRQV RUVHUYHLQDVWDIIFDSDFLW\DVGHILQHGLQ7LWOH'LYLVLRQ6HFWLRQRIWKH&DOLIRUQLD&RGH RI5HJXODWLRQV
352+,%,7,21$*$,16775$16)(56
D 3URYLGHUVKDOOQRWDVVLJQVXEOHDVHK\SRWKHFDWHRUWUDQVIHUWKLV$JUHHPHQWRUDQ\ LQWHUHVW WKHUHLQ GLUHFWO\ RU LQGLUHFWO\ E\ RSHUDWLRQ RI ODZ RU RWKHUZLVH ZLWKRXW SULRU ZULWWHQ FRQVHQWRIWKH&LW\0DQDJHU3URYLGHUVKDOOVXEPLWDZULWWHQUHTXHVWIRUFRQVHQWWRWUDQVIHUWRWKH &LW\0DQDJHUDWOHDVWWKLUW\
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
2SHUDWLRQ'LJQLW\
D 2QO\WKRVHSHUVRQVDQGRUEXVLQHVVHVZKRVHQDPHVDQGUHVXPpVDUHDWWDFKHGWRWKLV $JUHHPHQWVKDOOEHXVHGLQWKHSHUIRUPDQFHRIWKLV$JUHHPHQW+RZHYHULIDIWHUWKHVWDUWRIWKLV $JUHHPHQW3URYLGHUZLVKHVWRXVHVXESURYLGHUVDWQRDGGLWLRQDOFRVWVWRWKH&LW\WKHQ3URYLGHU VKDOOVXEPLWDZULWWHQUHTXHVWIRUFRQVHQWWRDGGVXESURYLGHUV LQFOXGLQJWKHQDPHVRIWKHVXE SURYLGHUVDQGWKHUHDVRQVIRUWKHUHTXHVWWRWKH&LW\0DQDJHURU&RPPXQLW\'HYHORSPHQW'LUHFWRU DWOHDVWILYH
GD\VLQDGYDQFH7KH&LW\0DQDJHURU&RPPXQL W\'HYHORSPHQW'LUHFWRUPD\ FRQVHQWRUUHMHFWVXFKUHTXHVWVLQWKHLUVROHDQGDEVROXWHGLVFUHWLRQ E (DFK VXESURYLGHU VKDOO EH UHTXLUHG WR IXUQLVK SURRI RI ZRUNHUV¶ FRPSHQVDWLRQ LQVXUDQFH DQG VKDOO DOVR EH UHTXLUHG WR FDUU\ JHQHUDO DXWRPREL OH DQG SURIHVVLRQDO OLDELOLW\ LQVXUDQFH
DVDSSOLFDEOH
LQUHDVRQDEOHFRQIRUPLW\WRWKHLQVXUDQFHFDUULHGE\3URYLGHU F ,QDGGLWLRQDQ\WDVNVRUVHUYLFHVSHUIRUPHGE\VXESURYLGHUVV KDOOEHVXEMHFWWR HDFKSURYLVLRQRIWKLV$JUHHPHQW3URYLGHUVKDOOLQFOXGHWKHIROORZLQJODQJXDJHLQWKHLUDJUHHPHQW ZLWKDQ\VXESURYLGHU
³6XESURYLGHUVKLUHGE\3URYLGHUDJUHH WREHERXQGWR3URYLGHUDQGWKH &LW\LQWKHVDPHPDQQHUDQGWRWKHVDPHH[WHQWDV3URYLGHULVERXQGWRWKH&LW\´ G 7KH UHTXLUHPHQWV LQ WKLV 6HFWLRQ VKDOO QRW DSSO\ WR SHUVRQVZKR DUH PHUHO\ SURYLGLQJPDWHULDOVVXSSOLHVGDWDRULQIRUPDWLRQWKDW3URYLGHUWKHQDQDO\]HVDQGLQFRUSRUDWHVLQWR LWVZRUNSURGXFW
3(50,76$1'/,&(16(6
3URYLGHUDWLWVVROHH[SHQVHVKDOOREWDLQDQGPDLQWDLQGXULQJWKHWHUPRIWKLV$JUHHPHQW DOO DSSURSULDWH SHUPLWV FHUWLILFDWHV DQG OLFHQVHV LQFOXGLQJ D &LW\ EXVLQHVV OLFHQVH WKDW PD\ EH UHTXLUHGLQFRQQHFWLRQZLWKWKHSHUIRUPDQFHRIWKHVHUYLFHVDQGWDVNVKHUHXQGHU 5(32576
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
LQFOXGLQJWKH&RPSOLDQFHDQG5HSRUWLQ J*XLGDQFHIRU6WDWHDQG/RFDO )LVFDO5HFRYHU\)XQGVLVVXHGE\WKH'HSDUWPHQWRIWKH7UHDVXU\ DQGRWKHUUHTXLUHPHQWVLPSRVHG
E\WKHUHOHYDQWIXQGLQJVRXUFHDVPD\EHDPHQGHGIURPWLPHWRWLPH 5(&25'6
D 3URYLGHUVKDOOPDLQWDLQFRPSOHWHDQGDFFXUDWHUHFRUGVZLWKUHVSHFWWRWKHVHUYLFHV WDVNV ZRUN GRFXPHQWV DQG GDWD LQ VXIILFLHQW GHWDLO WR SHUPLW DQ HYDOXDWLRQ RI 3URYLGHU¶V
2SHUDWLRQ'LJQLW\
SHUIRUPDQFHXQGHUWKH$JUHHPHQWDVZHOODVPDLQWDLQERRNVDQG UHFRUGVUHODWHGWRVDOHVFRVWV H[SHQVHVUHFHLSWVDQGRWKHUVXFKLQIRUPDWLRQUHTXLUHGE\WKH& LW\WKDWUHODWHWRWKHSHUIRUPDQFH RIWKHVHUYLFHVDQGWDVNVXQGHUWKLV$JUHHPHQW
FROOHFWLYHO\WKH³5HFRUGV´
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
\HDUVDIWHUUHFHLSWRIILQDOSD\PHQW
F ,IVXSSOHPHQWDOH[DPLQDWLRQRUDXGLWRIWKH5HFRUGVLVQHFHVVDU \GXHWRFRQFHUQV UDLVHG E\ WKH &LW\¶V SUHOLPLQDU\ H[DPLQDWLRQ RU DXGLW RI UHFRUGV DQG WKH &LW\¶V VXSSOHPHQWDO H[DPLQDWLRQRUDXGLWRIWKHUHFRUGVGLVFORVHVDIDLOXUHWRDGKH UHWRDSSURSULDWHLQWHUQDOILQDQFLDO FRQWUROV RU RWKHU EUHDFK RI WKLV $JUHHPHQW RU IDLOXUH WR DFW LQ JRRG IDLWK WKHQ 3URYLGHU VKDOO UHLPEXUVH WKH &LW\ IRU DOO UHDVRQDEOH FRVWV DQG H[SHQVHV DVVRFL DWHG ZLWK WKH VXSSOHPHQWDO H[DPLQDWLRQRUDXGLW
127,&(6
D $OOQRWLFHVVKDOOEHLQZULWLQJDQGGHOLYHUHG
L
E\KDQG
RU
LL
VHQWE\UHJLVWHUHG
H[SUHVVRUFHUWLILHGPDLOZLWKUHWXUQUHFHLSWUHTXHVWHGRUZL WKGHOLYHU\FRQILUPDWLRQUHTXHVWHG IURPWKH86SRVWDOVHUYLFH
RU
LLL
VHQWE\RYHUQLJKWRUVDP HGD\FRXULHUVHUYLFHDWWKHSDUW\¶V UHVSHFWLYHDGGUHVVOLVWHGLQWKLV6HFWLRQ
E (DFKQRWLFHVKDOOEHGHHPHGWRKDYHEHHQUHFHLYHGRQWKHHDUOLH UWRRFFXURI
[
DFWXDO GHOLYHU\ RU WKH GDWH RQ ZKLFK GHOLYHU\ LV UHIXVHG RU
\
WKUHH
GD\V DIWHU QRWLFH LV
GHSRVLWHGLQWKH86PDLORUZLWKDFRXULHUVHUYLFHLQWKHPDQ QHUGHVFULEHGDERYH 6XQGD\VDQG
&LW\KROLGD\VH[FHSWHG
F (LWKHUSDUW\PD\DWDQ\WLPHFKDQJHLWVQRWLFHDGGUHVV RWKHUWKDQWRDSRVWRIILFH
ER[DGGUHVV
E\JLYLQJWKHRWKHUSDUW\WKUHH
GD\VSULRUZULWWHQQRWLFHRIWKHQHZDGGUHVV
G $OOQRWLFHVGHPDQGVUHTXHVWVRUDSSURYDOVIURP3URYLGHUWRWKH&LW\VKDOOEH DGGUHVVHGWRWKH&LW\DW
&LW\RI$ODPHGD
&RPPXQLW\'HYHORSPHQW'HSDUWPHQW
:HVW0DOO6TXDUH6XLWH
$ODPHGD&$
$77(17,21
&RPPXQLW\'HYHORSPHQW'LUHFWRU
H 3K
(PDLO
HFRQGHY#DODPHGDFDJRY$OOQRWLFHVGHPDQGV
UHTXHVWVRUDSSURYDOVIURPWKH&LW\WR3URYLGHUVKDOOEHDGGUHVVHGWR3URYLGHUDW
2SHUDWLRQ'LJQLW\
+DUULVRQ6WUHHW6XLWH
2SHUDWLRQ'LJQLW\
2DNODQG&$
$77(17,21
0DUJXHULWH%DFKDQG([HFXWLYH'LUHFWRU
3K
[(PDLO
PEDFKDQG#RSHUDWLRQGLJQLW\RUJ
I $OOXSGDWHGLQVXUDQFHFHUWLILFDWHVIURP3URYLGHUWRWKH&LW\VKDOOEHDGGUHVVHGWR WKH&LW\DW
&LW\RI$ODPHGD
&RPPXQLW\'HYHORSPHQW'HSDUWPHQW
:HVW0DOO6TXDUH6XLWH
$ODPHGD&$
$77(17,21
$QQLH&R[
3K
(PDLO
DFR[#DODPHGDFDJRY
6$)(7<
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¶VIDLOXUH WRWKRURXJKO\IDPLOLDUL]HLWVHOIZLWKWKHDIRUHPHQWLRQHGVDIHW\ SURYLVLRQVZLOOQRWUHOLHYHLWIURP FRPSOLDQFHZLWKWKHREOLJDWLRQVDQGSHQDOWLHVVHWIRUWKKHUHLQ E 3URYLGHUZLOOLPPHGLDWHO\QRWLI\WKH&LW\ZLWKLQKRXUVRIDQ\LQFLGHQWRIGHDWK VHULRXV SHUVRQDO LQMXU\ RU VXEVWDQWLDO SURSHUW\ GDPDJH WKDW RFF XUV LQ FRQQHFWLRQ ZLWK WKH SHUIRUPDQFHRIWKLV$JUHHPHQW3URYLGHUZLOOSURPSWO\VXEPLWW RWKH&LW\DZULWWHQUHSRUWRIDOO LQFLGHQWVWKDWRFFXULQFRQQHFWLRQZLWKWKLV$JUHHPHQW7KLVU HSRUWPXVWLQFOXGHWKHIROORZLQJ
LQIRUPDWLRQ
L
QDPH DQG DGGUHVV RI LQMXUHG RU GHFHDVHG SHUVRQ V
LL
QDPH DQG DGGUHVV RI
3URYLGHU¶V HPSOR\HH
V
LQYROYHG LQ WKH LQFLGHQW
LLL
QDPH DQG DGGUHVV RI 3URYLGHU¶V OLDELOLW\
LQVXUDQFHFDUULHU
LY
DGHWDLOHGGHVFULSWLRQRIWKHLQFLGHQW
DQG
Y
DSROLFHUHSRUW
7(50,1$7,21
D ,QWKHHYHQW3URYLGHUIDLOVRUUHIXVHVWRSHUIRUPDQ\RIWKHSURYLVLRQVKHUHRIDWWKH WLPHDQGLQWKHPDQQHUUHTXLUHGKHUHXQGHU3URYLGHUVKDOOEHGHHPHGLQGHIDXOWLQWKHSHUIRUPDQFH R I W K L V $ J U H H P H Q W , I V X F K G H I D X O W L V Q R W F X U H G Z L W K L Q W Z R
EXVLQHVV GD\V DIWHU UHFHLSW E\
3URYLGHUIURPWKH&LW\RIZULWWHQQRWLFHRIGHIDXOWVSHFLI\LQJ WKHQDWXUHRIVXFKGHIDXOWDQGWKH VWHSVQHFHVVDU\WRFXUHVXFKGHIDXOWWKH&LW\PD\WKHUHDIWHULPPHGLDWHO\WHUPLQDWHWKH$JUHHPHQW IRUWKZLWKE\JLYLQJWR3URYLGHUZULWWHQQRWLFHWKHUHRI E 7KHIRUHJRLQJQRWZLWKVWDQGLQJWKH&LW\VKDOOKDYHWKHRSWLRQDWLWVVROHGLVFUHWLRQ DQGZLWKRXWFDXVHRIWHUPLQDWLQJWKLV$JUHHPHQWE\JLYLQJVHYHQ
GD\V¶SULRUZULWWHQQRWLFHWR
3URYLGHUDVSURYLGHGKHUHLQ
2SHUDWLRQ'LJQLW\
F 8SRQWHUPLQDWLRQRIWKLV$JUHHPHQWHLWKHUIRUFDXVHRUIRUFRQYHQLHQFHHDFKSDUW\ VKDOOSD\WRWKHRWKHUSDUW\WKDWSRUWLRQRIFRPSHQVDWLRQVSHFLILHGLQWKLV$JUHHPHQWWKDWLVHDUQHG DQG XQSDLG SULRU WR WKH HIIHFWLYH GDWH RI WHUPLQDWLRQ 7KH REOLJDWLRQ RI WKH SDUWLHV XQGHU WKLV 6HFWLRQ
FVKDOOVXUYLYHWKHH[SLUDWLRQRUHDUO\WHUPLQDWLRQRIWKLV$JUHHPHQW $77251(<6¶)((6
,QWKHHYHQWRIDQ\OLWLJDWLRQLQFOXGLQJDGPLQLVWUDWLYHSURFHHGLQJVUHODWLQJWRWKLV $JUHHPHQWLQFOXGLQJEXWQRWOLPLWHGWRDQ\DFWLRQRUVXLWE\DQ\SDUW\DVVLJQHHRUEHQHILFLDU\ DJDLQVWDQ\RWKHUSDUW\EHQHILFLDU\RUDVVLJQHHWRHQIRUFHLQWHUSUHWRUVHHNUHOLHIIURPDQ\ SURYLVLRQRUREOLJDWLRQDULVLQJRXWRIWKLV$JUHHPHQWWKHSDUWLHVDQGOLWLJDQWVVKDOOEHDUWKHLURZQ DWWRUQH\¶VIHHVDQGFRVWV1RSDUW\RIOLWLJDQWVKDOOEHHQWLWOHGWRUHFRYHUDQ\DWWRUQH\V¶IHHVRU FRVWVIURPDQ\RWKHUSDUW\RUOLWLJDQWUHJDUGOHVVRIZKLFKSDUW\RUOLWLJDQWPLJKWSUHYDLO +($/7+$1'6$)(7<5(48,5(0(176
3URYLGHU DFNQRZOHGJHV WKDW WKH &LW\ VKDOO KDYH WKH ULJKW WR LPSRVH DW WKH &LW\¶V VROH GLVFUHWLRQUHTXLUHPHQWVWKDWLWGHHPVDUHQHFHVVDU\WRSURWHFW WKHKHDOWKDQGVDIHW\RIWKH&LW\ HPSOR\HHV UHVLGHQWV DQG YLVLWRUV 3URYLGHU DJUHHV WR FRPSO\ ZLWK DOO VXFK UHTXLUHPHQWV LQFOXGLQJEXWQRWOLPLWHGWRPDQGDWRU\YDFFLQDWLRQVWKHXVH RISHUVRQDOSURWHFWLYHHTXLSPHQW
HJPDVNV
SK\VLFDOGLVWDQFLQJDQGKHDOWKVFUHHQLQJV3URYLGHUDOVRDJUHHVWRPDNHDYDLODEOHWR WKH&LW\DWWKH&LW\¶VUHTXHVWUHFRUGVWRGHPRQVWUDWH3URYLGH U¶VFRPSOLDQFHZLWKWKLV6HFWLRQ >6HH&HUWLILFDWLRQRI&RPSOLDQFHDWWDFKHG@
&203/,$1&(:,7+$//$33/,&$%/(/$:6
'XULQJWKHWHUPRIWKLV$JUHHPHQW3URYLGHUVKDOONHHSIXOO\LQ IRUPHGRIDOOH[LVWLQJDQG IXWXUHVWDWHDQGIHGHUDOODZVDQGDOOPXQLFLSDORUGLQDQFHVDQGUHJXODWLRQVRIWKH&LW\RI$ODPHGD ZKLFKDIIHFWWKHPDQQHULQZKLFKWKHVHUYLFHVRUWDVNVDUHWREHSHUIRUPHGE\3URYLGHUDVZHOODV DOO VXFK RUGHUV DQG GHFUHHV RI ERGLHV RU WULEXQDOV KDYLQJ DQ\ MXULVGLFWLRQ RU DXWKRULW\ RYHU WKH VDPH3URYLGHUVKDOOFRPSO\ZLWKDOODSSOLFDEOHODZVVWDWHDQ GIHGHUDODQGDOORUGLQDQFHVUXOHV DQGUHJXODWLRQVHQDFWHGRULVVXHGE\WKH&LW\
&21)/,&72)/$:
7KLV $JUHHPHQW VKDOO EH LQWHUSUHWHG XQGHU DQG HQIRUFHG E\ WKH O D Z V R I W K H 6 W D W H R I &DOLIRUQLDZLWKRXWUHJDUGWRDQ\FKRLFHRIODZUXOHVZKLFKPD\ GLUHFWWKHDSSOLFDWLRQRIODZVRI DQRWKHUMXULVGLFWLRQ7KH$JUHHPHQWDQGREOLJDWLRQVRIWKHSDU WLHVDUHVXEMHFWWRDOOYDOLGODZV RUGHUV UXOHV DQG UHJXODWLRQV RI WKH DXWKRULWLHV KDYLQJ MXULVGLFWLRQ RYHU WKLV $JUHHPHQW RU WKH
VXFFHVVRUVRIWKRVHDXWKRULWLHV
$Q\VXLWVEURXJKWSXUVXDQWWRWKLV$JUHHPHQWVKDOOEHILOHGZLWK WKHFRXUWVRIWKH&RXQW\RI$ODPHGD6WDWHRI&DOLIRUQLD :$,9(5
$ZDLYHUE\WKH&LW\RIDQ\EUHDFKRIDQ\WHUPFRYHQDQWRUFR QGLWLRQFRQWDLQHGKHUHLQ VKDOO QRW EH GHHPHG WR EH D ZDLYHU RI DQ\ VXEVHTXHQW EUHDFK RIWKH VDPH RU DQ\ RWKHU WHUP FRYHQDQWRUFRQGLWLRQFRQWDLQHGKHUHLQZKHWKHURIWKHVDPHRUDGLIIHUHQWFKDUDFWHU ,17(*5$7('&2175$&7
2SHUDWLRQ'LJQLW\
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
&$37,216
7KHFDSWLRQVLQWKLV$JUHHPHQWDUHIRUFRQYHQLHQFHRQO\DUHQR WDSDUWRIWKH$JUHHPHQW DQGLQQRZD\DIIHFWOLPLWRUDPSOLI\WKHWHUPVRUSURYLVLRQVRIWKLV$JUHHPHQW &2817(53$576
7KLV$JUHHPHQWPD\EHH[HFXWHGLQDQ\QXPEHURIFRXQWHUSDUWV L QFOXGLQJE\ID[3')
'RFX6LJQRURWKHUHOHFWURQLFPHDQV
HDFKRIZKLFKVKDOOEHGHHPHGDQRULJLQDOEXWDOORIZKLFK VKDOOFRQVWLWXWHRQHDQGWKHVDPHLQVWUXPHQW
6,*1$725<
%\ VLJQLQJ WKLV $JUHHPHQW VLJQDWRU\ ZDUUDQWV DQG UHSUHVHQWV WKDW WKH\ H[HFXWHG WKLV $JUHHPHQWLQWKHLUDXWKRUL]HGFDSDFLW\DQGWKDWE\WKHLUVLJQDW XUHRQWKLV$JUHHPHQWWKH\RUWKH HQWLW\XSRQEHKDOIRIZKLFKWKH\DFWHGH[HFXWHGWKLV$JUHHPHQW
&21752//,1*$*5((0(17
,QWKHHYHQWRIDFRQIOLFWEHWZHHQWKHWHUPVDQGFRQGLWLRQVRIWKLV$JUHHPHQW DVDPHQGHG
VXSSOHPHQWHG UHVWDWHG RU RWKHUZLVH PRGLILHG IURP WLPH WR WLPH DQG DQ\ RWKHU WHUPV DQG
FRQGLWLRQVZKHUHYHUFRQWDLQHGLQFOXGLQJZLWKRXWOLPLWDWLRQWHUPVDQGFRQGLWLRQVLQFOXGHGZLWKLQ H[KLELWVWKHWHUPVDQGFRQGLWLRQVRIWKLV$JUHHPHQWVKDOOFRQWURODQGEHSULPDU\
121',6&5,0,1$7,21±)('(5$/5(48,5(0(176
D 3URYLGHUFHUWLILHVDQGDJUHHVWKD WLWZLOOQRWGLVFULPLQDWHDJD LQVWDQ\HPSOR\HHRU DSSOLFDQWIRUHPSOR\PHQWEHFDXVHRIUDFHFRORUUHOLJLRQQDWL RQDORULJLQDQFHVWU\VH[DJHRU FRQGLWLRQ RU SK\VLFDO RU PHQWDO KDQGLFDS
DV GHILQHG LQ &)5 6HFWLRQ HW VHT LQ
DFFRUGDQFH ZLWK UHTXLUHPHQW RI VWDWH RU IHGHUDO ODZ 3URYLGHUVKDOO WDNH DIILUPDWLYH DFWLRQ WR HQVXUHWKDWTXDOLILHGDSSOLFDQWVDUHHPSOR\HGDQGWKDWHPSOR\HH VDUHWUHDWHGGXULQJHPSOR\PHQW ZLWKRXWUHJDUGWRUDFHFRORUUHOLJLRQQDWLRQDORULJLQDQFHVWU\VH[DJHRUFRQGLWLRQRISK\VLFDO RUPHQWDOKDQGLFDSLQDFFRUGDQFHZLWKUHTXLUHPHQWVRIVWDWHDQGIHGHUDOODZ6XFKVKDOOLQFOXGH EXWQRWEHOLPLWHGWRWKHIROORZLQJ
$ (PSOR\PHQW XSJUDGLQJ GHPRWLRQ WUDQVIHU UHFUXLWPHQW RU UHFUXL WPHQW DGYHUWLVLQJOD\RIIRUWHUPLQDWLRQUDWHVRISD\RURWKHUIRUPVRIFRPSHQVDWLRQ % 6HOHFWLRQIRUWUDLQLQJLQFOXGLQJLQWHUQVDQGDSSUHQWLFHV
2SHUDWLRQ'LJQLW\
L
3URYLGHUDJUHHVWRSRVWLQFRQVSLFXRXVSODFHVLQHDFKRI3URYLG HU¶V IDFLOLWLHV SURYLGLQJ VHUYLFHV KHUHXQGHU DYDLODEOH DQG RSHQ WR HPSOR\HHV DQG DSSOLFDQWV IRU HPSOR\PHQWQRWLFHVVHWWLQJIRUWKWKHSURYLVLRQVRIWKLVQRQGLVFULPLQDWLRQFODXVH
LL
3URYLGHUVKDOOLQDOOVROLFLWDWLRQVRUDGYHUWLVHPHQWVIRUHPSO R\HHV SODFHGE\RURQEHKDOIRI3URYLGHUVWDWHWKDWDOOTXDOLILHGDSSOLFDQWVZLOOUHFHLYHFRQVLGHUDWLRQIRU HPSOR\PHQWZLWKRXWUHJDUGWRUDFHFRORUUHOLJLRQQDWLRQDORULJLQDQFHVWU\VH[DJHRUFRQGLWLRQ RISK\VLFDORUPHQWDOKDQGLFDSLQDFFRUGDQFHZLWKUHTXLUHPHQWVRIVWDWHDQGIHGHUDOODZ
LLL
3URYLGHUVKDOOVHQGWRHDFKODERUXQLRQRUUHSUHVHQWDWLYHRIZRUNHUV ZLWKZKLFKLWKDVDFROOHFWLYHEDUJDLQLQJDJUHHPHQWRURWKHUFR QWUDFWRUXQGHUVWDQGLQJDQRWLFH DGYLVLQJ WKH ODERU XQLRQ RU ZRUNHUV¶ UHSUHVHQWDWLYH RI 3URYLGHU ¶V FRPPLWPHQWV XQGHU WKLV SDUDJUDSK
LY
3URYLGHUFHUWLILHVDQGDJUHHVWKDWLWZLOOGHDOZLWKLWVVXEFRQWUDFWRUV ELGGHUVRUYHQGRUVZLWKRXWUHJDUGWRUDFHFRORUUHOLJLRQQD WLRQDORULJLQDQFHVWU\VH[DJHRU FRQGLWLRQRISK\VLFDORUPHQWDOKDQGLFDSLQDFFRUGDQFHZLWKUHTXLUHPHQWRIVWDWHDQGIHGHUDOODZ
Y
,QDFFRUGDQFHZLWKDSSOLFDEOHVWDWHDQGIHGHUDOODZ3URYLGHUV KDOO DOORZGXO\DXWKRUL]HGFRXQW\VWDWHDQGIHGHUDOUHSUHVHQWDWLYHV DFFHVVWRLWVHPSOR\PHQWUHFRUGV GXULQJUHJXODUEXVLQHVVKRXUVLQRUGHUWRYHULI\FRPSOLDQFHZLWKWKHDQWLGLVFULPLQDWLRQSURYLVLRQV RI WKLV SDUDJUDSK 3URYLGHU VKDOO SURYLGH VXFK RWKHU LQIRUPDWL RQ DQG UHFRUGV DV VXFK UHSUHVHQWDWLYHVPD\UHTXLUHLQRUGHUWRYHULI\FRPSOLDQFHZLWK WKHDQWLGLVFULPLQDWLRQSURYLVLRQV RIWKLVSDUDJUDSK
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
F 7KHSDUWLHVDJUHHWKDWLQWKHHYHQW3URYLGHUYLRODWHVDQ\RIWK HDQWLGLVFULPLQDWLRQ SURYLVLRQVRIWKLVSDUDJUDSKWKH&LW\VKDOOEHHQWLWOHGDWLWVRSWLRQWRWKHVXPRISXUVXDQW WR&DOLIRUQLD&LYLO&RGH6HFWLRQDVOLTXLGDWHGGDPDJHVLQ OLHXRIFDQFHOLQJWHUPLQDWLQJRU VXVSHQGLQJWKLV$JUHHPHQW
G 3URYLGHUKHUHE\DJUHHVWKDWLWZLOOFRPSO\ZLWK6HFWLRQRI WKH5HKDELOLWDWLRQ $FW RI
DV DPHQGHG
86& 6HFWLRQ
DOO UHTXLUHPHQWV LPSRVHG E\ WKH DSSOLFDEOH
UHJXODWLRQV DQG DOO JXLGHOLQHV DQG LQWHUSUHWDWLRQV LVVXHG SXUVXDQW WKHUHWR WR WKH HQG WKDW QR TXDOLILHGKDQGLFDSSHGSHUVRQVKDOORQWKHEDVLVRIKDQGLFDSEHH[FOXGHGIURPSDUWLFLSDWLRQLQEH GHQLHGWKHEHQHILWVRIRURWKHUZLVHEHVXEMHFWHGWRGLVFULPLQD WLRQXQGHUDQ\SURJUDPRUDFWLYLW\ RI3URYLGHUUHFHLYLQJ)HGHUDO)LQDQFLDO$VVLVWDQFH,QDGGLWLR Q3URYLGHUVKDOOFRPSO\ZLWKWKH 8QLIRUP)HGHUDO$FFHVVLELOLW\6WDQGDUGVDQG3URYLGHU(QJLQHHURU$UFKLWHFWUHVSRQVLEOHIRUDQ\ GHVLJQFRQVWUXFWLRQRUDOWHUDWLRQVKDOOFHUWLI\FRPSOLDQFHZLWKWKRVH6WDQGDUGV
2SHUDWLRQ'LJQLW\
H 3URYLGHU¶VDWWHQWLRQLVGLUHFWHGWRODZVLQFOXGLQJEXWQRWOLPLWHGWR
$ &,9,/5,*+76(48$/23325781,7<
L
&LYLO5LJKWV$FWRI
8QGHU7LWOH9,,RIWKH&LYLO5LJKWV$FWRI
QRSHUVRQVKDOORQWKHJURXQGVRIUDFHVH[UHOLJLRQF RORURUQDWLRQDORULJLQEHH[FOXGHG IURP SDUWLFLSDWLRQ LQ EH GHQLHG WKH EHQHILWV RI RU EH VXEMHFWHG WR GLVFULPLQDWLRQ XQGHU DQ\ SURJUDPRUDFWLYLW\UHFHLYLQJ)HGHUDOILQDQFLDODVVLVWDQFH
LL
6HFWLRQ
RI WKH +RXVLQJ DQG &RPPXQLW\ 'HYHORSPHQW $FW RI
1RSHUVRQLQWKH8QLWHG6WDWHVVKDOORQWKHJURXQGVRI UDFHFRORUQDWLRQDORULJLQRUVH[ EHH[FOXGHGIURPSDUWLFLSDWLRQLQEHGHQLHGWKHEHQHILWVRIRUEHVXEMHFWHGWRGLVFULPLQDWLRQXQGHU DQ\SURJUDPRUDFWLYLW\IXQGHGLQZKROHRULQSDUWZLWKIXQGVPDGHDYDLODEOHXQGHUWKLVWLWOH
LLL
6HFWLRQ
RIWKH$FWIXUWKHUSURYLGHVWKDWDQ\SURKLELWLRQDJ DLQVW GLVFULPLQDWLRQRQWKHEDVLVRIDJHXQGHUWKH$JH'LVFULPLQDWLRQ $FWRI
86&HW
VHT
RUZLWKUHVSHFWWRDQRWKHUZLVHTXDOLILHGKDQGLFDSSHGLQG LYLGXDODVSURYLGHGLQ6HFWLRQ RIWKH5HKDELOLWDWLRQ$FWRI
86&
VKDOODOVRDSSO\WRDQ\SURJUDPRUDFWLYLW\IXQGHG
LQZKROHRULQSDUWZLWKIXQGVPDGHDYDLODEOHSXUVXDQWWRWKH$FW % 352*5$0 $&&(66,%,/,7< )25 ,1',9,'8$/6 :,7+
',6$%,/,7,(6
7KLV $JUHHPHQW LV VXEMHFW WR ODZV DQG UHJXODWLRQV FRQFHUQLQJ WK H ULJKWV RI RWKHUZLVH TXDOLILHG LQGLYLGXDOV ZLWK KDQGLFDSV IRU HTXDO SDUWLF LSDWLRQ LQ DQG EHQHILW IURP IHGHUDOO\DVVLVWHGSURJUDPVDQGDFWLYLWLHVLQFOXGLQJEXWQRWOLPLWHGWR
L
$PHULFDQV ZLWK 'LVDELOLWLHV $FW RI
$'$
&)5
7LWOH,,6XESDUW$RIWKH$PHULFDQVZLWK'LVDELOLWLHV$FWRI
DSSOLHVWRDOOSXEOLFO\IXQGHG
DFWLYLWLHVDQGSURJUDPV3URYLGHUVKDOODOVRFRPSO\ZLWKWKHSXEOLFDFFRPPRGDWLRQVUHTXLUHPHQWV RI7LWOH,,,RIWKH$'$DVDSSOLFDEOH
LL
1RQGLVFULPLQDWLRQRQWKH%DVLVRI+DQGLFDS
&)5
7KH VH
UHJXODWLRQVZKLFKLPSOHPHQW6HFWLRQRIWKH5HKDELOLWDWLRQ $FWRI DVDPHQGHGDQGDV
FLWHG LQ 6HFWLRQ
RI WKH +RXVLQJ DQG &RPPXQLW\ 'HYHORSPHQW $FW DSSO\ WR DOO IHGHUDOO\ DVVLVWHGDFWLYLWLHVDQGSURJUDPVDQGDUHLPSOHPHQWHGWKURXJKWKHUHJXODWLRQVDW&)5
LLL
$UFKLWHFWXUDO %DUULHU $FW RI
$Q\ EXLOGLQJ RU IDFLOLW\
H[FOXGLQJ SULYDWHO\ RZQHG UHVLGHQWLDO VWUXFWXUHV GHVLJQHG FRQVWUXFWHG RU DOWHUHG ZLWK IHGHUDO IXQGVVKDOOFRPSO\ZLWKWKH8QLIRUP)HGHUDO$FFHVVLELOLW\6WDQGDUGV
&)5
DQGWKH
+DQGLFDSSHG $FFHVVLELOLW\ 5HTXLUHPHQWV RI WKH 6WDWH RI &DOLIRUQLD 7LWOH 7KH &RQVXOWDQW (QJLQHHU RU $UFKLWHFW UHVSRQVLEOH IRU VXFK GHVLJQ FRQVWUXFWLRQ RU DOWHUDWLRQ VKDOO FHUWLI\ FRPSOLDQFHZLWKWKHDERYHVWDQGDUGV
LY
,QUHVROYLQJDQ\FRQIOLFWEHWZHHQWKHDFFHVVLELOLW\VWDQGDUGVFLWHGLQ SDUDJUDSKV
L
LL
DQG
LLL
DERYHWKHPRUHVWULQJHQWVWDQGDUGVKDOODSSO\
5(675,&7,21621/2%%<,1*±)('(5$/5(48,5(0(17
2SHUDWLRQ'LJQLW\
7KLV$JUHHPHQWLVVXEMHFWWR&)5ZKLFKSURKLELWVWKHS D\PHQWRI)HGHUDOIXQGV WR DQ\ SHUVRQ IRU LQIOXHQFLQJ RU DWWHPSWLQJ WR LQIOXHQFH DQ\ SXEOLF RIILFHU RU HPSOR\HH LQ FRQQHFWLRQZLWKWKHDZDUGPDNLQJHQWHULQJLQWRH[WHQVLRQFR QWLQXDWLRQUHQHZDODPHQGPHQW RUPRGLILFDWLRQRIDQ\)HGHUDOFRQWUDFWJUDQWORDQRUDJUHHPHQW )('(5$/&21',7,216
$VVHWIRUWKLQ$WWDFKPHQW'WRWKLV$JUHHPHQW
6XEUHFLSLHQW0RQLWRULQJDQG0DQDJHPHQW
5HTXLUHPHQWV
WKH &LW\ KDV PDGH WKH GLVFORVXUHV UHTXLUHG XQGHU &)5 6HFWLRQ WR 3URYLGHU
DVDVXEUHFLSLHQWRIIHGHUDOIXQGV
>5(0$,1'(52)3$*(,17(17,21$//</()7%/$1.@
2SHUDWLRQ'LJQLW\
,1:,71(66:+(5(2)WKHSDUWLHVKDYHHDFKFDXVHGWKLV$JUHHPHQWWREHGXO\ H[HFXWHGRQLWVEHKDOIDVRIWKH(IIHFWLYH'DWH
2 3 ( 5 $ 7 , 2 1 ' , * 1 , 7 < & , 7 < 2 ) $ / $ 0 ( ' $ D&DOLIRUQLDQRQSURILWFRUSRUDWLRQ DPXQLFLSDOFRUSRUDWLRQ
0 D U J X H U L W H % D F K D Q G
( [ H F X W L Y H ' L U H F W R U
&DWK\%RHU
%RDUG7UHDVXUHU
5 ( & 2 0 0 ( 1 ' ( ' ) 2 5 $ 3 3 5 2 9 $ /
/ L V D 1 0 D [ Z H O O
&RPPXQLW\'HYHORSPHQW'LUHFWRU
$33529('$672)250
&LW\$WWRUQH\
/ H Q $ V O D Q L D Q
$ V V L V W D Q W & L W \ $ W W R U Q H \
Erin Smith
City Manager
$53$ 6XEUHFLSLHQ W
([KLELW$
6FRSHRI:RUN
2SHUDWLRQ'LJQLW\
*XDUDQWHHG%DVLF,QFRPH3LORW
:RUN3ODQ
%DFNJURXQG
2SHUDWLRQ'LJQLW\SURSRVHVWRDGPLQLVWHUWKH*XDUDQWHHG%DVLF,QFRPH3LORWLQFRQMXQFWLRQZLWKWKH FKRVHQ5HVHDUFKDQG)LQDQFLDO3DUWQHUVIRUWKH&LW\RI$ODPHGDZLWKLQLWLDOSODQQLQJWREHJLQLQODWH DQGWKHSURJUDPWRODXQFKIXOO\LQ6SULQJ6XPPHU
2YHUWKHVL[\HDUVRISDUWQHUVKLSEHWZHHQRXURUJDQL]DWLRQDQGWKH&LW\RI$ODPHGDZHKDYHSURYLGHG $ODPHGDZLWKUHJXODULQGHSWKVXUYH\VDQGQHHGVDVVHVVPHQWVRIHQFDPSPHQWV HQJDJHGHQFDPSPHQW
UHVLGHQWVLQVHUYLFHVDQGVXSSRUWHGWKH&LW\LQPLWLJDWLQJWKHHIIHFWRIHQFDPSPHQWFOHDULQJVRYHUWKH \HDUV:H¶YHSURYLGHGPRUHWKDQKRPHOHVVLQGLYLGXDOVZLWKRXWUHDFKDQGHQJDJHPHQWKDUP UHGXFWLRQVXSSOLHVDQGKRXVLQJQDYLJDWLRQ:HDUHYHU\H[SHULHQFHGLQFRRUGLQDWLQJZLWKYDULRXV DJHQFLHVDQGRUJDQL]DWLRQVLQRUGHUWRSURYLGHQHFHVVDU\VHUYLFHVWRWKH&LW\¶VPRVWYXOQHUDEOH UHVLGHQWV:HDOVRKDYHWKHDELOLW\WRSURYLGHVHUYLFHVLQPXOWLSOHODQJXDJHVXWLOL]LQJRXUFRPPXQLW\ SDUWQHUVKLSVWRHQVXUHWKDWDOOSDUWLFLSDQWVDUHDEOHWRUHFHLYH3LORW3URJUDPLQIRUPDWLRQLQWKHODQJXDJH WKH\DUHPRVWFRPIRUWDEOHZLWK±(QJOLVK6SDQLVK7DJDORJ9LHWQDPHVHDQG.RUHDQDPRQJRWKHUV
:LWKQHDUO\\HDUVRIORFDONQRZOHGJHRIWKHSURSRVHGWDUJHWSRSXODWLRQLQ$ODPHGDDQGFRPPXQLW\ UHVRXUFHV2SHUDWLRQ'LJQLW\LVSRLVHGWRFRQWLQXHSDUWQHULQJZLWKWKH&LW\WRDGPLQLVWHUWKLVH[FLWLQJ QHZSURJUDPWKDWZLOOKDYHWUHPHQGRXVLPSDFWRQORZLQFRPHUHVLGHQWV
&RQWDFW
0DUJXHULWH%DFKDQG([HFXWLYH'LUHFWRU
2SHUDWLRQ'LJQLW\
+DUULVRQ6WUHHW6XLWH
2DNODQG&$
[
PEDFKDQG#RSHUDWLRQGLJQLW\RUJ
6FRSHRI6HUYLFHV
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¶VWLPHZLOOEHLQ\HDURQHDQG³WKHEDODQFHRIWKHLU WLPH´LQ\HDUZLWK
RQERDUGLQJVSULQJRIDQGRIIERDUGLQJVSULQJVXPPHU
:KHQHYHUSRVVLEOH2'ZLOOKLUHWHDPPHPEHUVZKRKDYHOLYHGH[SHULHQFHZLWKKRXVLQJLQVWDELOLW\ XQHPSOR\PHQWRURWKHUFKDOOHQJHVUHOHYDQWWRWKHWDUJHWSRSXODWLRQ7KLVZLOOEHDFUXFLDOERG\RI NQRZOHGJHDQGWKLVOHYHORIH[SHULHQFHZLOOSURPRWHJUHDWHUVXFFHVVLQWKH3LORW3URJUDP7KH $GPLQLVWUDWRUZLOOEHWKHEULGJHEHWZHHQ&LW\VWDIIDQGSDUWQHUVDQGZLOOSURYLGHWKH&RRUGLQDWRUZLWK WKHQHFHVVDU\JXLGDQFHDQGVXSSRUWLQIXOILOOLQJWKHGD\WRGD\ILHOGUHVSRQVLELOLWLHV
7KH3LORW3URJUDP7HDP¶VDFWLYLWLHVZLOOFRQVLVWRI
3URJUDP'HVLJQDQG5HILQHPHQW
8SRQODXQFKLQJWKHLQLWLDWLYHWKH3URJUDP&RRUGLQDWRUZLOOLPPHGLDWHO\EHJLQWKHWDVNVUHTXLUHGWR ILQDOL]HWKHSURJUDPGHVLJQLQFOXGLQJ
x 2UJDQL]LQJIRFXVJURXSVRISHRSOHZLWKOLYHGH[SHULHQFHDQGVROLFLWLQJFRPPHQWVRQPHVVDJLQJ ZUDSDURXQGVHUYLFHVFRPPXQLFDWLRQVVWUDWHJLHVDQGRWKHUSURJUDPWRSLFV x /HDGLQJFROODERUDWLYHHIIRUWVWRILQDOL]HWKHSURJUDPGHVLJQDQGGHWHUPLQHHOLJLELOLW\ UHTXLUHPHQWVIRUDQGVHOHFWLRQDQGUHWHQWLRQRIWKHSLORWSDUWLFLSDQWVDQGFRQWUROJURXS DV
DSSOLFDEOH
x 2UJDQL]LQJDQ$GYLVRU\%RDUGWRRYHUVHHWKHSURJUDPLPSOHPHQWDWLRQ7KH%RDUGZLOOLQFOXGH ORFDOFRPPXQLW\DQGDGYRFDF\RUJDQL]DWLRQVDQGWKRVHZLWKOLYHGH[SHULHQFH7KH%RDUGZLOO PDNHUHFRPPHQGDWLRQVRQPHWULFVWREHXVHGE\WKH5HVHDUFK3DUWQHU x ,GHQWLI\LQJDQGRUJDQL]LQJZUDSDURXQGVXSSRUWVHUYLFHVIRUSDUWLFLSDQWVLQFROODERUDWLRQZLWK WKH%HQHILWV&RXQVHORU
x /HDGLQJWKHHIIRUWWRFUHDWHDQGPDLQWDLQWKH3LORW3URJUDPZHEVLWHSRUWDODQGGHVLJQLWWRVHUYH DVDOLYHSXEOLFGDVKERDUGIRUSHUIRUPDQFHPHWULFV7KHZHEVLWHSRUWDOZLOOEHFRPSDWLEOHZLWK WKH&LW\¶VZHEVLWHZLWKPRELOHFRPPXQLFDWLRQVGHYLFHVDQGLQIRUPDWLRQZLOOEHPDGH DYDLODEOHLQ(QJOLVK6SDQLVK7DJDORJ9LHWQDPHVHDQG.RUHDQ x :RUNLQJZLWKWKH5HVHDUFK3DUWQHUWRHQVXUHWKHSLORWSURJUDPGHVLJQPHHWVDOO,5% UHTXLUHPHQWV
5HFUXLWPHQWRI3LORW3URJUDP3DUWLFLSDQWV
7KH3URJUDP&RRUGLQDWRUZLWKDVVLVWDQFHIURPWKH$GPLQLVWUDWRUZLOOZRUNWRUHFUXLWHOLJLEOH KRXVHKROGVWRSDUWLFLSDWHLQWKHSLORWLQFOXGLQJ
x &ROODERUDWLQJZLWKWKH&LW\WRHGXFDWHWKHSXEOLFDERXWWKHSLORWSURJUDPDQGWKHDYDLODELOLW\RI WKHDSSOLFDWLRQ
x 3DUWQHULQJZLWKIURQWOLQHVRFLDOVHUYLFHVQRQSURILWIDLWKEDVHGDQGRWKHURUJDQL]DWLRQVWR FRQGXFWIRFXVHGRXWUHDFKZLWKLQFRPPXQLWLHVWKDWLQFOXGHEXWDUHQRWOLPLWHGWR
o 3HRSOHH[SHULHQFLQJRUDWULVNRIKRPHOHVVQHVV
o ,PPLJUDQWUHIXJHHDQGOLPLWHG(QJOLVKVSHDNLQJFRPPXQLWLHV o +LVWRULFDOO\GLVHQIUDQFKLVHGJURXSVLQFOXGLQJ%ODFN,QGLJHQRXVDQGRWKHUFRPPXQLWLHV RIFRORU
o /RZLQFRPHIDPLOLHVLQFOXGLQJVHQLRUFLWL]HQV
o $IIRUGDEOHKRXVLQJWHQDQWVUHQWHUV
o 3HRSOHZLWKGLVDELOLWLHV
o &KLOGUHQ\RXWK$ODPHGD8QLILHG6FKRRO'LVWULFWDQG&ROOHJHRI$ODPHGD x +RVWLQJPHHWLQJVUHFUXLWLQJHYHQWVDQGRIIHULQJSDUWLFLSDQWLQFHQWLYHV&RRUGLQDWLQJZLWKWKH 5HVHDUFK3DUWQHUWRHQVXUHWKHPLQLPXPDSSOLFDWLRQWDUJHWLVUHDFKHG
2SHUDWLRQ'LJQLW\KDVH[SHULHQFHLQRXWUHDFKWKDWZLOOEHUHOHYDQWLQWKHUHFUXLWPHQWSURFHVV:H UHJXODUO\SHUIRUPRXWUHDFKWRDQGHQJDJHXQVKHOWHUHGDQGRUORZLQFRPHLQGLYLGXDOVIRUKRXVLQJ SUREOHPVROYLQJDQGVWDELOLW\
FRQQHFWLRQWRWHPSRUDU\HPHUJHQF\DQGRUSHUPDQHQWKRXVLQJ DQG
FRQQHFWLRQWRRWKHUUHVRXUFHVWRKHOSWKHPVXFFHHGDQGWKULYHLQWKHLUKRXVLQJ2XUVWDIIXQGHUVWDQGV KRZWRDSSURDFKDQGZRUNZLWKDWULVNSRSXODWLRQVDQGYHU\VHQVLWLYHWRWKHLUQHHGV
2UJDQL]LQJDQG)DFLOLWDWLQJWKH$SSOLFDWLRQDQG6HOHFWLRQ3URFHVV 7KH3URJUDP$GPLQLVWUDWRUZLWKDVVLVWDQFHIURPWKH&RRUGLQDWRUZLOOZRUNZLWKWKH&LW\DQGWKH 5HVHDUFK3DUWQHUWRPDNHWKHILQDOGHWHUPLQDWLRQRQSURJUDPSDUWLFLSDQWVLQFOXGLQJ
x 6XSSRUWLQJWKHGHYHORSPHQWRIDQRQOLQHDSSOLFDWLRQDFFHVVLEOHWKURXJKERWKFRPSXWHUVDQG PRELOHGHYLFHV7KHDSSOLFDWLRQPD\DOVRVHUYHDVWKHLQLWLDOVXUYH\IRUWKHUHVHDUFKFRPSRQHQW RIWKH3LORW3URJUDP
o 7KHDSSOLFDWLRQZLOOEHGHVLJQHGLQDQDFFHVVLEOHZD\IRUDEURDGDXGLHQFHDQG DYDLODEOHLQQXPHURXVODQJXDJHV
x :RUNLQJZLWKWKH&LW\WRLGHQWLI\SK\VLFDOORFDWLRQVZKHUHFRPSXWHUDFFHVVFRXOGEHSURYLGHG GXULQJWKHDSSOLFDWLRQSHULRG
LHOLEUDULHVFRPPXQLW\FHQWHUVRWKHUFRPPXQLW\
RUJDQL]DWLRQV
x :RUNLQJZLWKWKH5HVHDUFK3DUWQHUWRFRPSOHWHWKHVHOHFWLRQWKURXJKDUDQGRPL]HGORWWHU\ x 'HYHORSZULWWHQHOLJLELOLW\FULWHULDWREHGLVVHPLQDWHGWRSRWHQWLDOSDUWLFLSDQWV
2XUZRUNLQ0RELOH2XWUHDFKUHTXLUHVPHWLFXORXVGDWDFROOHFWLRQSDUWLFXODUO\LQSDUWLFLSDQWHQUROOPHQW DQGWUDFNLQJ:HFDQSURYLGHWKDWVDPHOHYHORIGHWDLODQGVHUYLFHLQWKHVHOHFWLRQDQGHQUROOPHQWRI 3LORW3URJUDPSDUWLFLSDQWV
2UJDQL]LQJWKH2Q%RDUGLQJ3URFHGXUHIRU3DUWLFLSDQWV)ROORZLQJWKH6HOHFWLRQ/RWWHU\DQG2II %RDUGLQJDWWKH&RQFOXVLRQRIWKH3URJUDP
7KH3URJUDP&RRUGLQDWRUZLOOEHUHVSRQVLEOHIRUDUUDQJLQJWKHRQERDUGLQJDQGRIIERDUGHGSURFHVVHV
LQFOXGLQJ
x 1RWLI\LQJWKH3LORW3URJUDPSDUWLFLSDQWVRIWKHLUVHOHFWLRQ x &RQGXFWLQJRQHRQRQHRULHQWDWLRQVHVVLRQVIRUHDFKSDUWLFLSDQWSURYLGLQJDFRPSOHWH SURJUDPPDWLFRYHUYLHZWKHRQERDUGLQJSURFHVVDQGUHTXLUHGSDSHUZRUNDQGDQVZHULQJDQ\ TXHVWLRQVIURPWKHSDUWLFLSDQWV7KH&RRUGLQDWRUZLOODOVRFUHDWHDQ\QHFHVVDU\PDWHULDOV SRWHQWLDOO\DYLGHRWRFRPPXQLFDWHLQIRUPDWLRQDQGFRQYH\HQWKXVLDVPIRUWKHSURJUDP x $VVLVWLQJDSSOLFDQWVLQFRPSOHWLQJDSSOLFDWLRQVDQGGRFXPHQWDWLRQWRSDUWLFLSDWHLQWKH3LORW 3URJUDPHLWKHULQSHUVRQRYHUWKHSKRQHWKURXJK=RRPRUWKURXJKDQRWKHUDSSURSULDWH PHWKRG
x (QVXULQJWKHFRPSOHWHDQGDFWLYHFRQVHQWRI3LORW3URJUDPSDUWLFLSDQWVZKRDUHIXOO\LQIRUPHG DQGZLOOLQJWRSDUWLFLSDWH
x &ROOHFWSDUWLFLSDQWIHHGEDFNGXULQJWKHRIIERDUGLQJSHULRGWRDQDO\]HDQGXVHIRUUHVHDUFK SXUSRVHVDQGWREHSXWWRZDUGVDQ\IXWXUHSURJUDPPLQJRIWKLVW\SH x 3URYLGHZULWWHQGRFXPHQWDWLRQRQSDUWLFLSDQWV¶ULJKWVDQGUHVSRQVLELOLWLHVLQWKHSURJUDP GHYHORSHGLQSDUWQHUVKLSZLWKWKH&LW\RI$ODPHGDDQGWKHRWKHU3LORW3URJUDP3DUWQHUV5LJKWV LQFOXGHEXWDUHQRWOLPLWHGWRLWHPVVXFKDV
o 3DUWLFLSDQWVKDYHWKHULJKWWREHWUHDWHGZLWKGLJQLW\DQGUHVSHFW o 3DUWLFLSDQWVKDYHWKHULJKWWRSULYDF\
o 3DUWLFLSDQWVKDYHWKHULJKWWREHWUHDWHGZLWKFXOWXUDOVHQVLWLYLW\ o 3DUWLFLSDQWVKDYHWKHULJKWWRVHOIGHWHUPLQDWLRQLQUHJDUGVWRWKHLUIXQGVUHFHLYHG o 6HUYLFHVVKRXOGEHSURYLGHGWRSDUWLFLSDQWVRQO\LQWKHFRQWH[WRIDSURIHVVLRQDO UHODWLRQVKLSEDVHGRQYDOLGLQIRUPHGFRQVHQW
o 3DUWLFLSDQWVVKRXOGEHFOHDUO\LQIRUPHGLQXQGHUVWDQGDEOHODQJXDJHDERXWWKHSXUSRVH RIWKHVHUYLFHVEHLQJGHOLYHUHGLQFOXGLQJFOLHQWVZKRDUHQRWOLWHUDWHDQGRUDUHOLPLWHG (QJOLVKSURILFLHQW
o 3DUWLFLSDQWVKDYHWKHULJKWWRFRQILGHQWLDOLW\DQGLQIRUPDWLRQDERXWZKHQFRQILGHQWLDO LQIRUPDWLRQZLOOEHGLVFORVHGWRZKRPDQGIRUZKDWSXUSRVHDVZHOODVWKHULJKWWRGHQ\ GLVFORVXUH
o 3DUWLFLSDQWVKDYHWKHULJKWWRUHDVRQDEOHDFFHVVWRUHFRUGVFRQFHUQLQJWKHLULQYROYHPHQW LQWKHSURJUDP
o 3DUWLFLSDQWVKDYHWKHULJKWWRKDYHDQDGYRFDWHSUHVHQWGXULQJDSSHDOVDQGJULHYDQFH SURFHVVHV
$GPLQLVWHULQJ)XQGVWR3LORW3URJUDP3DUWLFLSDQWV2YHUWKH&RXUVHRIWKH3URJUDP 7KH3URJUDP7HDPZLOOZRUNWRJHWKHUWRHQVXUHWKHVPRRWKGHOLYHU\RIPRQWKO\IXQGVWR3LORW3URJUDP SDUWLFLSDQWVLQFOXGLQJ
x (QVXULQJWKDWPRQWKO\UHFXUULQJSD\PHQWVDUHPDGHWR3LORW3URJUDPSDUWLFLSDQWV x 7URXEOHVKRRWLQJDQ\LVVXHVUHODWHGWRSD\PHQWGLVWULEXWLRQ x (QVXULQJWKDW3LORW3URJUDPSDUWLFLSDQWVGRQRWDGYHUVHO\VXIIHUHFRQRPLFDOO\IURPWKHLU SDUWLFLSDWLRQSDUWLFXODUO\LIWKHLU3LORW3URJUDPLQFRPHSXWVWKHPRXWRIUDQJHIRUSXEOLF EHQHILWVWKH\KDGSUHYLRXVO\UHFHLYHG7KH&RRUGLQDWRUDQG$GPLQLVWUDWRUZLOOSURYLGH FRXQVHOLQJWRWKHSDUWLFLSDQWVWRPDNHWKHPDZDUHRIDQ\SRWHQWLDOEHQHILWVFKDQJHVWKDWPD\ DIIHFWWKHPDVVLVWWKHSDUWLFLSDQWVLQDSSO\LQJIRULQFRPHH[HPSWLRQVIRUDSSOLFDEOHEHQHILWV DQGFRRUGLQDWHSD\PHQWVIURPWKH&LW\EHQHILW&RQVHUYDWLRQ)XQGWRFRPSHQVDWHIRUDQ\ XQDQWLFLSDWHGHFRQRPLFLQMXU\
7KHRQERDUGLQJDQGRIIERDUGLQJDFWLYLWLHVDORQJZLWKWKHGDLO\VXSSRUWDQGUHVSRQVHWRSDUWLFLSDQW FRQFHUQVZLOOEHSHUIRUPHGE\WKH%HQHILWV&RXQVHORUZLWKVXSSRUWIURPWKH3URJUDP&RRUGLQDWRU7KH 3URJUDP$GPLQLVWUDWRUZLOOSURYLGHVXSSRUWDVQHHGHGWRHQVXUHWKHVPRRWKRSHUDWLRQRIWKH3LORW 3URJUDP
6XSSRUWLQJWKH$GYRFDF\(IIRUWVRIWKH&LW\DQGWKH$FWLYLWLHVRIWKH5HVHDUFK3DUWQHU 7KH3URJUDP&RRUGLQDWRUDQG3URJUDP$GPLQLVWUDWRUZLOOZRUNZLWKWKH&LW\WRVXSSRUWDYDULHW\RI DGYRFDF\HIIRUWVLQFOXGLQJ
x :RUNLQJZLWK&LW\VWDIIWRLGHQWLI\3LORW3DUWLFLSDQWVZLOOLQJWRVKDUHWKHLUVWRULHVDQGDPSOLI\ WKHLUH[SHULHQFHV
x :RUNLQJZLWK&LW\VWDIIDQGRWKHUSDUWQHUVRQFRPPXQLFDWLRQDQGDGYRFDF\HIIRUWVILHOGLQJ LQTXLULHVIURPWKHSUHVVDQGWKHJHQHUDOSXEOLFDQGFRRUGLQDWLQJSUHVVWRSURPRWHWKH3LORW 3URJUDP
x /HDGLQJHIIRUWVWRXWLOL]HVWRU\WHOOLQJWHFKQLTXHVSKRWRJUDSK\YLGHRDQGRURWKHUPHGLXPVWR SURPRWHDQDUUDWLYHFKDQJHDURXQGSRYHUW\DQGDQWLSRYHUW\SROLFLHVZLWKLQWKHEURDGHU $ODPHGDFRPPXQLW\
x :RUNLQJZLWK&LW\VWDIIDQGWKH5HVHDUFK3DUWQHUWRSUHVHQWDQGGLVWULEXWHUHVHDUFKGHOLYHUDEOHV ERWKGXULQJWKHSURJUDPDQGIRUPRQWKVDIWHUWKHFRQFOXVLRQRIWKH3LORW3URJUDP x 6XSSRUWLQJWKH&LW\LQEURDGHUDGYRFDF\HIIRUWVUHODWHGWRJXDUDQWHHGLQFRPH
2SHUDWLRQ'LJQLW\¶VVWDIILVZHOOWUDLQHGLQFROOHFWLQJGDWDLQUHDOWLPHRQDOOFOLHQWVWKURXJKRXUZRUNLQ WKH+RPHOHVV0DQDJHPHQW,QIRUPDWLRQ6\VWHP
+0,6
RUWKURXJKRWKHUDSSURSULDWHGDWDEDVHV\VWHPV
DVGHYHORSHGWRSURYLGHLQIRUPDWLRQDERXWVHUYLFHQHHGVJDSVDQGSHUIRUPDQFHPHWULFV:HDOVRKDYH HVWDEOLVKHGSURWRFROVIRUGDWDFROOHFWLRQDQGGDWDHQWU\
6HUYLQJDVWKH/LDLVRQ%HWZHHQWKH&LW\3LORW3URJUDP3DUWLFLSDQWVDQG2WKHU3LORW3URJUDP3DUWQHUV 7KH3URJUDP$GPLQLVWUDWRUZLWKDVVLVWDQFHIURPWKH3URJUDP&RRUGLQDWRUZLOOOLDLVHRQUHTXHVWDQGDV QHHGHGWKURXJKRXWWKH3LORW3URJUDPSODQQLQJSKDVHLPSOHPHQWDWLRQSKDVHDQGIRUXSWRPRQWKV SRVWSURJUDPWRFORVHRXWWKHZRUN
%HQHILWV&RXQVHOLQJ
7KH3URJUDP&RRUGLQDWRUZLOORYHUVHHWKH%HQHILWV&RXQVHORUZKRZLOOSURYLGHEHQHILWVFRXQVHOLQJIRU DOO3LORW3URJUDPSDUWLFLSDQWVPRVWO\DWWKHEHJLQQLQJHQGDQGWKURXJKRXWWKHSURJUDP7KLVZLOO
LQFOXGH
x (QVXULQJ3LORW3URJUDPSDUWLFLSDQWVXQGHUVWDQGKRZUHFHLYLQJ*,ZLOOLPSDFWRWKHUEHQHILWVWKH\ PD\UHFHLYHLQFOXGLQJEXWQRWOLPLWHGWR
66,66'0HGLFDLG0HGLFDUHIRRGDQGKRXVLQJ
DVVLVWDQFHDQGDQ\RWKHUSXEOLFEHQHILWV
x :RUNLQJZLWK&LW\&RXQW\DQG6WDWHDXWKRULWLHVWRXQGHUVWDQGWKHEHQHILWVODQGVFDSHLQ $ODPHGD&RXQW\DQGWKH&LW\RI$ODPHGDWRFUHDWHDQ$ODPHGDVSHFLILFEHQHILWVPDWULFWRKHOS LGHQWLI\ZKDWEHQHILWVPD\EHLPSDFWHGWKURXJKWKHSURJUDP¶VFDVKSD\PHQWV x +HOSLQJSDUWLFLSDQWVZHLJKWKHFRVWVDQGEHQHILWVRISDUWLFLSDWLQJLQWKH3LORW3URJUDP x (QVXULQJWKDW3LORW3URJUDPSDUWLFLSDQWVXQGHUVWDQGZKRWRFRQWDFWLQWKHHYHQWWKDWWKH\KDYH TXHVWLRQVDERXWRUUXQLQWRSUREOHPVZLWKWKHLUEHQHILWVDWDQ\WLPHWKURXJKRXWWKH3LORW 3URJUDP
x +HOSLQJSDUWLFLSDQWVUHHQUROOLQEHQHILWVDVQHFHVVDU\DWWKHHQGRIWKH3LORW3URJUDPSHULRGDQG RIIHUFRQWLQXLQJFRXQVHOLQJWKURXJKRXWDSRVWSURJUDP³RIIERDUGLQJ´SHULRGRIaPRQWKV x ,QIRUPLQJDQGFRPPXQLFDWLQJZLWKSDUWLFLSDQWVRQDQ\H[SHFWHGFKDQJHVZLWKLQWKHEHQHILWV V\VWHPDQGQRWLI\LQJWKHPLQDWLPHO\PDQQHUSULRUWRDQ\VXFKFKDQJHV
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
RIDQ\LQWHUYHQWLRQRSHUDWLRQVIROORZLQJQRWLILFDWLRQDQGSRVWLQJSURFHGXUHV:HZLOOXWLOL]HDOOWKLV H[SHULHQFHWRDGGUHVVSRWHQWLDODUHDVRIFRQFHUQIRU3LORW3URJUDPSDUWLFLSDQWVDQGWKHLUEHQHILWV PDLQWDLQLQJFRPPXQLFDWLRQDQGHQVXULQJWKH\XQGHUVWDQGKRZWKHSURJUDPPD\LPSDFWWKHLUFXUUHQW EHQHILWV
$GGLWLRQDO:RUN
'XULQJWKHDSSOLFDWLRQODXQFKWKHDSSOLFDWLRQSKDVHDQGWKHRQERDUGLQJSKDVHRIWKHSURMHFWDOO DVVLJQHGVWDIIZLOOPHHWZLWK&LW\VWDII2'DQGRWKHUSLORWSURJUDPSDUWQHUVZHHNO\)RUWKHGXUDWLRQ RIWKHSURMHFW6WDIIPHPEHUVZLOODOVRFRPPLWWRPHHWLQJDWOHDVWRQFHSHUPRQWKZLWKWKH&LW\DQG 3LORW3URJUDPSDUWQHUVWRHYDOXDWHWKHSURJUDPDQGPDNHQHFHVVDU\DGMXVWPHQWV'XULQJWKHRQ ERDUGLQJDQGRIIERDUGLQJSURFHVVZKHQWKHGHPDQGIRUDVVLVWDQFHDQGUHVRXUFHVZLOOEHHOHYDWHGWKH 3URMHFW&RRUGLQDWRUDQG3URMHFW$GPLQLVWUDWRUZLOOHQOLVWWKHDVVLVWDQFHRI2SHUDWLRQ'LJQLW\¶V H[SHULHQFHGWHDPRIFDVHPDQDJHUVWRDVVLVWLQVHUYLQJWKH3LORW3URJUDPSDUWLFLSDQWV
$OOVWDIIZLOOEHWUDLQHGRQGDWDFROOHFWLRQDQGXVLQJWKHUHOHYDQWGDWDEDVHV\VWHPWRVWRUHPHWULFVIRU DQDO\VLV6WDIIZLOOHQWHUGDWDDFFXUDWHO\DQGLQUHDOWLPHDQGDVVLVWWKH5HVHDUFK3DUWQHULQDQDO\]LQJ GDWDDVQHHGHG
2SHUDWLRQ'LJQLW\ZLOOSURYLGHUHSRUWVRQDTXDUWHUO\EDVLVDVZHOODVXSRQUHTXHVWIURPWKH&LW\RI $ODPHGD
6FKHGXOH
2SHUDWLRQ'LJQLW\KDVH[WHQVLYHH[SHULHQFHZRUNLQJRQODUJHVFDOHFLW\ZLGHSURMHFWVVXFKDVWKHRQH SURSRVHGE\WKH&LW\RI$ODPHGD
2QFHWKHSURJUDPLQLWLDWHV
1RYHPEHU
2SHUDWLRQ'LJQLW\ZLOOLQLWLDWHILQDOL]LQJSURJUDPGHVLJQ ZRUNLQJZLWKWKHRWKHU3DUWQHUVDQGWKH&LW\WRHQVXUHWKDWWKHSURJUDPWRXFKHVRQDOOUHTXLUHPHQWVDV RXWOLQHGE\WKH,5%
2QFHWKHGHVLJQKDVEHHQILQDOL]HG
ODWH±HDUO\
WKH3URJUDP&RRUGLQDWRUZLOOZRUNRQ
UHFUXLWLQJSURJUDPSDUWLFLSDQWVYHULI\LQJHOLJLELOLW\DQGZRUNLQJZLWKWKH5HVHDUFK3DUWQHUWRHQVXUH WKDWDIXOOVSHFWUXPRIFRPPXQLWLHVLVUHSUHVHQWHGDQGWKDWWKHPLQLPXPDSSOLFDWLRQWDUJHWLVUHDFKHG
:KHQWKHSDUWLFLSDQWVKDYHEHHQVHOHFWHG
0DUFK$SULO
DQGWKHSURJUDPKDVODXQFKHG
VSULQJVXPPHU
WKH3URJUDP&RRUGLQDWRUDQG%HQHILWV&RXQVHORUZLOOZRUNWRJHWKHUWRRQERDUG WKHSDUWLFLSDQWVWKURXJKDVHULHVRIRQHRQRQHRQERDUGLQJDQGFRXQVHOLQJVHVVLRQVHQVXULQJFRPSOHWH XQGHUVWDQGLQJRQEHKDOIRIWKHSDUWLFLSDQWVDQGILOLQJWKHQHFHVVDU\SDSHUZRUNWRHQVXUHFRQWLQXHG EHQHILWVIRUSDUWLFLSDQWVRUH[HPSWLRQVZKHUHDSSOLFDEOH7KH3URJUDP$GPLQLVWUDWRUZLOOVXSSRUWDV QHHGHG
7KURXJKRXWWKHSURMHFWSHULRGWKH%HQHILWV&RXQVHORUZLWKVXSSRUWIURPWKH3URJUDP&RRUGLQDWRUZLOO EHUHVSRQVLEOHIRUWKHGD\WRGD\RSHUDWLRQV
0RQGD\±)ULGD\
DQVZHULQJTXHVWLRQVDQG
WURXEOHVKRRWLQJDQ\LVVXHVWKDWDULVH7KH&RRUGLQDWRUZLOOVXSSRUWWKH&LW\¶VRYHUDOODGYRFDF\HIIRUWV DQGRXWUHDFKKHOSLQJWRGHYHORSPDWHULDOVWRHGXFDWHWKHJHQHUDOSXEOLFDERXWSRYHUW\DQG*,
$WWKHFRQFOXVLRQRIWKH3LORW3URJUDP
HVW6SULQJ6XPPHU
WKH3URJUDP&RRUGLQDWRUDQG
3URJUDP$GPLQLVWUDWRUZLOOFRQWULEXWHWRWKHSUHVHQWDWLRQDQGGLVWULEXWLRQRIWKHUHVHDUFKGHOLYHUDEOHV UHPDLQLQJDYDLODEOHIRUPRQWKVDIWHUWKHFRQFOXVLRQRIWKHSURJUDP XQWLOHVWPLGODWH
&RQFOXVLRQ
2SHUDWLRQ'LJQLW\DSSUHFLDWHVWKH&LW\RI$ODPHGD¶VSDUWQHUVKLSDQGORRNVIRUZDUGWRWKLVQHZFKDSWHU RIZRUNLQJWRJHWKHUWRVXSSRUW$ODPHGD¶VPRVWYXOQHUDEOHUHVLGHQWV2XUQHDUO\WKUHHGHFDGHVRI RXWUHDFKH[SHULHQFHVWURQJUDSSRUWZLWKWKHORFDOKRPHOHVVSRSXODWLRQDQGKLVWRU\RIFROODERUDWLRQ ZLWKRWKHUSURYLGHUVDQGWKH&LW\PDNH2SHUDWLRQ'LJQLW\DQH[HPSODU\RUJDQL]DWLRQWRLPSOHPHQWWKLV QHZJXDUDQWHHGLQFRPHSURJUDP3OHDVHFRQWDFWXVIRUDQ\DGGLWLRQDOLQIRUPDWLRQWKDWZRXOGEHKHOSIXO
$53$ 6XEUHFLSLHQ W
([KLELW%
%XGJHW
2SHUDWLRQ'LJQLW\
*XDUDQWHHG%DVLF,QFRPH3LORW3URJUDP
%8'*(7&$7(*25< <HDU <HDU 1DUUDWLYH
67$))6$/$5,(6
([HFXWLYH'LUHFWRU
7RFRYHUKLJKOHYHOFRRUGLQDWLRQZLWKWKH
&LW\LQFOXGLQJSURJUHVVPHHWLQJVTXDUWHUO\
UHSRUWVFRPPXQLW\RXWUHDFKSURJUDP
VXSHUYLVLRQUHJXODUPHHWLQJVZLWKRWKHU
SURJUDPSDUWQHUVDQG&LW\VWDIIPHHWLQJ
ZLWKWKH$GYLVRU\%RDUG)7(
<5)7(<5
&)2+5
7RFRYHUKLJKOHYHOELOOLQJDQGLQYRLFLQJ
VXSSRUWDVZHOODVKXPDQUHVRXUFHV
)7(
%RRNNHHSHU
3UHSDUHVLQYRLFHVDQGPDQDJHVJUDQW
VSHQGLQJ)7(
2IILFH$VVLVWDQW
$VVLVWVZLWKDGPLQLVWUDWLYHWDVNVDQG
GLUHFWLQJSDUWLFLSDQWFDOOVWRWKHDSSURSULDWH
WHDPPHPEHU)7(
3URJUDP$GPLQLVWUDWRU
7RFRYHUVXSHUYLVLRQRIWKH&RRUGLQDWRU
FRRUGLQDWLRQZLWKWKH&LW\RI$ODPHGDDQG
RWKHU3LORW3URJUDPSDUWQHUVSURJUDP
GHVLJQDVVLVWDQFHDQGRWKHU3LORW3URJUDP
DVVLVWDQFHDVQHHGHG)7(
3URJUDP&RRUGLQDWRU
7DNHVWKHOHDGLQDOO3LORW3URJUDPPDWWHUV
FRRUGLQDWHVGD\WRGD\DFWLYLWLHVRQDQG
RIIERDUGVWKH3LORW3URJUDPSDUWLFLSDQWV
DQGSURYLGHVVXSSRUWDQGDVVLVWDQFH
WKURXJKRXWHQWLUHSURJUDP)7(
%HQHILWV&RXQVHORU
7RDVVLVWLQWKHGDLO\FRXQVHOLQJDQGVXSSRUW
IRUSDUWLFLSDQWVWKURXJKRXWWKHSURJUDP
LQFOXGLQJRQERDUGLQJDQGRIIERDUGLQJ
FRXQVHOLQJDWWKHEHJLQQLQJDQGHQGRIWKH
3LORW3URJUDPSHULRGLQ\HDURQHDQG
WKHEDODQFHRIWKHLUWLPHLQ\HDU
7RWDO
)ULQJH%HQHILWV
,QFOXGHVKHDOWKDQGGHQWDOLQVXUDQFH
ZRUNHUVFRPSDQGSD\UROOWD[HV
7RWDO6WDII6DODULHV
23(5$7,216
,QVXUDQFH ,QVXUDQFHIRURIILFHVSDFH
33(
,QFOXGHVJORYHVPDVNVDQGFOHDQLQJ
VXSSOLHVIRUVWDIIDQGSDUWLFLSDQWVDIHW\
2IILFHVSDFHUHQW
3RUWLRQRIRIILFHVSDFHGHGLFDWHGWRWKH*%,
3LORW3URJUDP
2IILFHH[SHQVHV
,QFOXGHVSDSHUZULWLQJPDWHULDOVLQNDQG
FRS\LQJFRVWV
&RPSXWHUV &RPSXWHUVIRUSURJUDPVWDIIIRUILHOGZRUN 7HOHSKRQHFHOO
3KRQHVDQGRQJRLQJWHOHFRPPXQLFDWLRQV
FRVWVIRUSURJUDPVWDII
3ULQWLQJ
3ULQWLQJRISURJUDPPDWHULDOVKDQGRXWV
RXWUHDFKPDWHULDOVHWF
,76RIWZDUH
7HFKQLFDOVXSSRUWDQGVRIWZDUHZHE
PDLQWHQDQFHXWLOL]HGLJLWDOSKRWRJUDSK\
YLGHRDQGRURWKHUPHGLXPVWRSURPRWHD
QDUUDWLYHDURXQGSRYHUW\DQGDQWLSRYHUW\
SROLFLHVZLWKLQWKHFRPPXQLW\$OVR
LQFOXGHV$'$FRPSOLDQFH
3D\UROO)HHV )HHVIRUSURJUDPVWDII
&RPPXQLW\(QJDJHPHQW
)OH[LEOH)XQGLQJDFFRXQWWRFRYHURXWUHDFK
FRVWVLQFOXGLQJKRVWLQJPHHWLQJVDQG
RIIHULQJSDUWLFLSDQWLQFHQWLYHVVXFKDV
FDWHULQJPHDOVSKRQHFDUGVJLIW
FHUWLILFDWHVHWF$OVRLQFOXGHVWUDQVODWLRQ
VHUYLFHVHVWDEOLVKLQJDQXPEHUDQG
$'$FRPSOLDQFH
(PSOR\HHWUDYHO
0LOHDJHIRUVWDIIWRWUDYHOWRFRXQVHOLQJ
VHVVLRQVPHHWLQJVWUDLQLQJVDQGRWKHU
SURJUDPUHODWHGDSSRLQWPHQWV
,QGHSHQGHQW$XGLW 3HU$53$IXQGLQJUHTXLUHPHQWV 7RWDO0DLQWHQDQFHDQG
2SHUDWLRQV
7RWDO'LUHFW
,QGLUHFW([SHQVH
,QFOXGHVLQGLUHFWUDWHDSSURYHGE\
WKH9$DVZHOODVSURSRUWLRQDOUHQWDOFRVWV
727$/
<HDU±&2/$,QFUHDVH
3,/27352*5$0
727$/
$53$ 6XEUHFLSLHQ W
([KLELW&
$GGLWLRQDO3URYLVLRQV
7KHIROORZLQJSDUDJUDSK
V
DUHDGGHGWRWKH$JUHHPHQW
&21)/,&7,1*3529,6,216
,QWKHHYHQWRIDFRQIOLFWEHWZHHQWKHWHUPVDQGFRQGLWLRQVRIWKLV$JUHHPHQWDQGDQ\RWKHU DSSOLFDEOHWHUPVDQGFRQGLWLRQVLQFOXGLQJ([KLELWVIXUQLVKHGE\3URYLGHUWREHPDGHSDUWRIWKLV $JUHHPHQWWKHWHUPVDQGFRQGLWLRQVRIWKLV$JUHHPHQWVKDOOSUHYDLOH[FHSWWKDW([KLELW&
*UDQW&RQGLWLRQV
VKDOOSUHYDLORYHUDQ\SURYLVLRQWKDWFRQIOLFWZLWKWKH$JUHHPHQW 5(&25'6
1RWZLWKVWDQGLQJ 3DUDJUDSK
5(&25'6
*5$17(( VKDOO EH VROHO\ UHVSRQVLEOH WR
LPSOHPHQWLQWHUQDOFRQWUROVDQGUHFRUGNHHSLQJ SURFHGXUHVWKDWFRPSO\ZLWKWKLV$*5((0(17 DQG DOO DSSOLFDEOH ODZV *5$17((¶V DGPLQLVWUDWLYH SURJUDPPDWLF DQG ILQDQFLDO UHFRUGV SHUWDLQLQJ WR WKH 3URJUDP RU WKH $*5((0(17FROOHFWLYHO\PXVWVXIILFLHQWO\ VXSSRUWWKH GHWHUPLQDWLRQWKDWH[SHQGLWXUHV DUH DOORZDEOH *5$17(( VKDOO UHWDLQ DOO UHFRUGV SHUWLQHQW WR WKLV$*5((0(17IRUD SHULRGRIILYH
\HDUVIURPWKHGDWHRIILQDOSD\PHQWRUGLVEXUVHPHQW
WR 86 7UHDVXU\ RI XQH[SHQGHG &RURQDYLUXV 6WDWH DQG /RFDO )LVFDO 5HFRYHU\ )XQGV 6/)5)
VXEDZDUGV *5$17(( VKDOOUHWDLQVXFKUHFRUGVEH\RQGILYH
\HDUVVRORQJDVDQ\ OLWLJDWLRQ
DXGLWGLVSXWHRU FODLPLVSHQGLQJ
127+,5'3$57<5,*+76
7KLV $JUHHPHQW GRHV QRW FRQVWLWXWH D ELQGLQJ FRPPLWPHQW WR DQ\ FOLHQW RU DJHQF\ H[FHSW &,7< DQG *5$17(( 1R WKLUG SDUW\ ULJKWV DUH FUHDWHG IRU FOLHQWV RU RWKHU LQGLYLGXDOV
*5$17&21',7,216
1RWZLWKVWDQGLQJ 3DUDJUDSK
RI WKH $JUHHPHQW WKH *5$17((¶V JU DQW FRQGLWLRQV DWWDFKHG KHUHWR DV ([KLELW & DUH KHUHE\ H[SUHVVO\ PDGH SDUWRI WKH $JUHHPHQW EHWZHHQ WKH SDUWLHV
$53$ 6XEUHFLSLHQ W
([KLELW&
$53$6XEUHFLSLHQW&HUWLILFDWLRQ
6HFWLRQ
E
RI WKH 6RFLDO 6HFXULW\ $FW
WKH $FW
DV DGGHG E\ VHFWLRQ
RI WKH
$PHULFDQ 5HVFXH 3ODQ $FW
³$53$´
3XE / 1R
0DUFK
DXWKRUL]HV WKH
'HSDUWPHQW RI WKH 7UHDVXU\
7UHDVXU\
WR PDNH SD\PHQWV WR FHUWDLQ VXEUHFLSLHQWV IURP WKH &RURQDYLUXV6WDWHDQG/RFDO)LVFDO5HFRYHU\)XQG
³6/)5)´
7KH&LW\RI$ODPHGDKDVVLJQHG
DQG FHUWLILHG D VHSDUDWH DJUHHPHQW ZLWK 7UHDVXU\ DV D FRQGLWLRQ RI UHFHLYLQJ VXFK SD\PHQWV IURP WKH 7UHDVXU\ 7KLV DJUHHPHQW LV EHWZHHQ \RXU RUJDQL]DWLRQ DQG WKH 6WDWH DQG \RXU RUJDQL]DWLRQ LV VLJQLQJ DQG FHUWLI\LQJ WKH VDPH WHUPV DQG FRQGLWLRQV LQFOXGHG LQ WKH 6WDWH¶V VHSDUDWHDJUHHPHQWZLWK7UHDVXU\<RXURUJDQL]DWLRQLVUHIHUUHGWRDVD*5$17((
$VDFRQGLWLRQRI\RXURUJDQL]DWLRQUHFHLYLQJIHGHUDOUHFRYHU\ IXQGVIURPWKH&LW\WKH DXWKRUL]HG UHSUHVHQWDWLYH EHORZ KHUHE\
L
FHUWLILHV WKDW \RXURUJDQL]DWLRQ ZLOO FDUU\ RXW WKH DFWLYLWLHV OLVWHG LQ VHFWLRQ
F
RI WKH $FW DQG
LL
DJUHHVWR WKH WHUPV DWWDFKHG KHUHWR DV
([KLELW&
$53$6XEUHFLSLHQW*UDQW$JUHHPHQW
8QGHU SHQDOW\ RI SHUMXU\ WKH XQGHUVLJQHG RIILFLDO FHUWLILHV WK DW WKH DXWKRUL]HG UHSUHVHQWDWLYH KDV UHDG DQG XQGHUVWRRG WKH RUJDQL]DWLRQ¶V REOLJDWLRQV LQ WKH $VVXUDQFHV RI &RPSOLDQFHDQG&LYLO5LJKWV5HTXLUHPHQWVDWWDFKHGKHUHWRDV ([KLELW& $6685$1&(6
2) &203/,$1&( :,7+ &,9,/ 5,*+76 5(48,5(0(176
WKDW DQ\ LQIRUPDWLRQ
VXEPLWWHGLQFRQMXQFWLRQZLWKWKLVDVVXUDQFHVGRFXPHQWLVDFFXUDWHDQGFRPSOHWHDQGWKDWWKH RUJDQL]DWLRQLVFRPSOLHVZLWKWKHQRQGLVFULPLQDWLRQUHTXLUHPHQWV
68%5(&,3,(17*5$17((
23(5$7,21',*1,7<
0DUJXHULWH%DFKDQG
([HFXWLYH'LUHFWRU
$87+25,=('5(35(6(17$7,9(
$53$ 6XEUHFLSLHQ W
([KLELW&
$53$6XEUHFLSLHQW*UDQW$JUHHPHQW
7 K L V 6 X E U H F L S L H Q W $ J U H H P H Q W
³ * U D Q W $ J U H H P H Q W ´
L V G D W H G W K H H IIHFWLYH GDWH RI WKH
$JUHHPHQWE\DQGEHWZHHQWKH6XEUHFLSLHQW2SHUDWLRQ'LJQLW\ ³ *5$17((´
DQGWKH&LW\RI
$ODPHGDD&DOLIRUQLDPXQLFLSDOFRUSRUDWLRQ
³&,7<´
:+(5($6 WKH 8QLWHG 6WDWHV 'HSDUWPHQW RI WKH 7UHDVXU\ ³7UHDVXU\´
KDV DOORFDWHG
&,7<IHGHUDOVWLPXOXVIXQGLQJIURPWKH&RURQDYLUXV6WDWHDQG/RFDO)LVFDO5HFRYHU\)XQGVXQGHU &)'$1R
³$53$)XQGV´
XQGHU6HFWLRQ
E
RIWKH6RFLDO6HFXULW\$FWDVDPHQGHG
E\6HFWLRQ
RIWKH$PHULFD5HVFXH3ODQ$FW
³$53$´
RIZKLFK
ZDVDOORFDWHG
WR&,7<LQWZRWUDQFKHVRQ-XQHDQG-XQHVX EMHFWWRDSSOLFDEOHODZVUXOHV UHJXODWLRQV DQG JXLGDQFH LQFOXGLQJ ZLWKRXW OLPLWDWLRQ WKH &RURQDYLUXV 6WDWH DQG /RFDO )LVFDO 5HFRYHU\)XQGV)LQDO5XOH
³)LQDO5XOH´
LGHQWLILHGDV$WWDFKP HQW$
GDWHG-DQXDU\
DQG WKH &RPSOLDQFH DQG 5HSRUWLQJ *XLGDQFH IRU 6WDWH DQG /RFDO ) LVFDO 5HFRYHU\ )XQGV
³&RPSOLDQFH 5HSRUWLQJ*XLGHOLQHV´
LGHQWLILHGDV$WWDFKPHQW %DQG8QLIRUP*XLGDQFH
&)53DUW
$WWDFKPHQWV$DQG%DWWDFKHGKHUHWRDQGLQFRUSRUDWHGKHUHLQE\WKLVUHIHUHQFH
:+(5($67UHDVXU\DXWKRUL]HV&,7<WRH[SHQG$53$)XQGVIRUWKH IROORZLQJHOLJLEOH SXUSRVHVDVRXWOLQHGLQWKH)LQDO5XOHDVIROORZV
7RUHVSRQGWRWKH&29,'
SXEOLFKHDOWKHPHUJHQF\RULWVQHJDWLYHHFRQRPLFLPSDFWV LQFOXGLQJDVVLVWDQFHWRKRXVHKROGVVPDOOEXVLQHVVHVDQGQRQSU RILWVRUDLGWRLPSDFWHG LQGXVWULHVVXFKDVWRXULVPWUDYHODQGKRVSLWDOLW\
7RUHVSRQGWRZRUNHUVSHUIRUPLQJ HVVHQWLDOZRUNGXULQJWKH&29, ' SXEOLFKHDOWK
HPHUJHQF\E\SURYLGLQJSUHPLXPSD\WRHOLJLEOHZRUNHUV
)RUWKHSURYLVLRQRIJRYHUQPHQWVHUYLFHVWRWKHH[WHQWRIWKHUHGXFWLRQLQUHYHQXHGXHWR WKH&29,'
SXEOLFKHDOWKHPHUJHQF\UHODWLYHWRUHYHQXHVFROOHFWHGLQWKHPRVWUHFHQW IXOOILVFDO\HDUSULRUWRWKHHPHUJHQF\
DQG
7RPDNHQHFHVVDU\LQYHVWPHQWVLQZDWHUVHZHURUEURDGEDQGLQIUDVWUXFWXUH FROOHFWLYHO\
³(OLJLEOH8VHV´
3XUVXDQWWR$53$(OLJLEOH8VHVXQGHUWKLVQRQ5 'IHGHUDOSURJUDPPXVWEHREOLJDWHGQRHDUOLHU WKDQ0DUFKDQGQRODWHUWKDQ'HFHPEHUZLWKILQDOGLVEXUVHPHQWRIDOOIXQGVQR ODWHUWKDQ'HFHPEHU
:+(5($6&,7<GHVLUHVWRDOORFDWHSRUWLRQVRIWKH$53$)XQGVWR FHUWDLQQRQSURILWV ZKRVHRSHUDWLRQVDUHFULWLFDOWRWKRVHLQGLYLGXDOVIDPLOLHVDQGHQWLWLHVDGYHUVHO\LPSDFWHGE\WKH &29,'
SXEOLFKHDOWKHPHUJHQF\ZKHWKHUWKURXJKDUHGXFWLRQLQLQFRPHUHYHQXHVLQFUHDVHLQ RSHUDWLQJFRVWVUHODWHGWRLPSOHPHQWLQJ&29,'
SUHYHQWLRQRUPLWLJDWLRQWDFWLFVRURWKHUKLJKHU
RSHUDWLQJ FRVWV H[SHULHQFHG GXULQJ WKH SDQGHPLF EXVLQHVV GLVUX SWLRQ RU FORVXUH HYHQW FDQFHOODWLRQDQGRURWKHUVLPLODUFLUFXPVWDQFHVGXULQJWKH
$53$ 6XEUHFLSLHQ W
SDQGHPLFWKDWFUHDWHGDILQDQFLDOKDUGVKLSZLWKVXFKDOORFDWLR QRIIXQGVWREHFRQVLVWHQWZLWK WKH(OLJLEOH8VHVRI$53$)XQGVRXWOLQHGDERYH
:+(5($6&,7<DQG*5$17((GHVLUHWRHQWHULQWRWKH$JUHHPHQWVRWKDW&,7<PD\ SURYLGHDVXEDZDUGRI$53$)XQGVIRUDSSURSULDWHDQGTXDOLI\LQJ H[SHQGLWXUHVRIJUDQWIXQGV DGYDQFHGWR*5$17((E\&,7<IRU(OLJLEOH8VHVVHWIRUWKLQ([KL ELW$ 6FRSHRI:RUN
DV
DOORZHGXQGHU)LQDO5XOH
12:7+(5()25(LQFRQVLGHUDWLRQRIWKHIRUHJRLQJUHFLWDOVZKLFKDUHLQFRUSRUDWHGKHUHLQE\ UHIHUHQFHDQGWKHWHUPVDQGFRQGLWLRQVVHWIRUWKEHORZWKHSDUWLHVDJUHHDVIROORZV
L (IIHFWLYH'DWHDQG7HUP7KH*UDQW$JUHHPHQWVKDOOEHFRWHUPLQRXVZLWKWKHWHUPRIWKH $JUHHPHQW
LL $53$)XQGV&,7<DJUHHVWRSURYLGHWKH*5$17((DWRWDOVXPQRWWRH[FHHGWKHYDOXH RIWKH$JUHHPHQWIRU(OLJLEOH8VHVVHWIRUWKLQWKH([KLELW$ 6FRSHRI:RUN
LLL 8VH RI $53$ )XQGV *5$17(( VKDOO HQVXUH WKDW WKH $53$ )XQGV UHTXHVWV DUH QHFHVVDU\(OLJLEOH8VHVXQGHURQHRIWKHIROORZLQJFRVWFDWHJR ULHV D
7RUHVSRQGWRWKH
&29,'
SXEOLFKHDOWKHPHUJHQF\RULWVQHJDWLYHHFRQRPLFLPSDFWVLQFOXGLQJDVVLVWDQFH WR KRXVHKROGV VPDOO EXVLQHVVHV DQG QRQSURILWV RU DLG WR LPSDFWHG LQGXVWULHV VXFK DV WRXULVPWUDYHODQGKRVSLWDOLW\E
7RUHVSRQGWRZRUNHUVSHUIRUPLQJHVVHQWLDOZRUNGXULQJ WKH&29,'
SXEOLFKHDOWKHPHUJHQF\E\SURYLGLQJSUHPLXPSD\WRHOLJLEOHZRUNHUVF
)RUWKHSURYLVLRQRIJRYHUQPHQWVHUYLFHVWRWKHH[WHQWRIWKHU HGXFWLRQLQUHYHQXHGXHWR WKH&29,'
SXEOLFKHDOWKHPHUJHQF\UHODWLYHWRUHYHQXHVFROOH FWHGLQWKHPRVWUHFHQW IXOOILVFDO\HDUSULRUWRWKHHPHUJHQF\
DQGG
7RPDNHQHFHVVD U\LQYHVWPHQWVLQZDWHU
VHZHURUEURDGEDQGLQIUDVWUXFWXUH
LY 3UHDZDUG&RVWV3UHDZDUGFRVWVDVGHILQHGLQ&)5PD\QRWEHSDLGZLWK IXQGLQJIURPWKLVDZDUG
Y $GPLQLVWUDWLYH&RVWV*5$17((PD\XVHIXQGVSURYLGHGXQGHUWKLVDZDUGWRFRYHUERWK GLUHFWDQGLQGLUHFWFRVWV
YL ,QHOLJLEOH 8VHV ,QHOLJLEOH RU QRQDOORZDEOH XVHV RI $53$ )XQGV LQFOXGH ZLWK RXW OLPLWDWLRQWKHIROORZLQJ
D
XVDJHRIIXQGVWRHLWKHUGLUHFWO\RULQGLUHFWO\RIIVHWDUHGXFWLRQ LQ QHW WD[ UHYHQXH UHVXOWLQJ IURP D FKDQJH LQ ODZ UHJXODWLRQ R U DGPLQLVWUDWLYH LQWHUSUHWDWLRQGXULQJWKHFRYHUHGSHULRGWKDWUHGXFHVDQ\WD[R UGHOD\VWKHLPSRVLWLRQRI DQ\WD[RUWD[LQFUHDVH
E
GDPDJHVFRYHUHGE\LQVXUDQFH
F
XV DJHRIIXQGVDVDGHSRVLW
LQWRDQ\SHQVLRQIXQG
G
H[SHQVHVWKDWKDYHEHHQRUZLOOEHUHLPEXUVHGXQGHUDQ\IHGHUDO
SURJUDP
H
GHEW VHUYLFH FRVWV
I
FRQWULEXWLRQV WR D ³UDLQ\ GD \´ IXQG
DQG G
OHJDO
VHWWOHPHQWV
YLL 6$0JRY5HTXLUHPHQWV,IDSSOLFDEOH*5$17((PXVWREWDLQDQGPDLQWDLQDQDFWLYH UHJLVWUDWLRQ ZLWK WKH 6\VWHP IRU $ZDUG 0DQDJHPHQW ³6$0´
KWWSV
ZZZVDPJRY
SXUVXDQWWR&)53DUW
$53$ 6XEUHFLSLHQ W
YLLL 5HLPEXUVHPHQW 5HTXHVWV DQG 5HSRUWLQJ 5HTXLUHPHQWV 7R IDFLOLWDWH WKH UHOHDVH RI $53$)XQGVE\&,7<WR*5$17((DQG&,7<¶VFRPSOLDQFHZLWKUHSRUWLQJUHTXLUHPHQWV IRU XVDJH RI $53$ IXQGLQJ *5$17(( PD\ VXEPLW RQH UHTXHVW SHU PRQWK WR &,7< FRQVLVWHQWZLWKFRPSHQVDWLRQSURYLVLRQVRIWKH$JUHHPHQW 3DUDJUDSK&RPSHQVDWLRQWR
3URYLGHU
&,7< VKDOO WKHQ GLVEXUVH $53$ )XQGV DV UHTXHVWHG E\* 5 $ 1 7 ( ( W R I X Q G VHUYLFHVVHWIRUWKLQ([KLELW$
6FRSHRI6HUYLFHV
RIWKH$JUH HPHQW
³5HLPEXUVHPHQW
5HTXHVW)XQGV´
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
L[ 5HFRUGV5HSRUWVDQG$XGLWV $VDVXEUHFLSLHQWRI$53$)XQGV*5$17((PD\EH VXEMHFWWRWKH6LQJOH$XGLW$FWDQG&)5SDUWVXESDUW)UHJDUGLQJDXGLWUHTXLUHPHQWV
(VWDEOLVKPHQW DQG 0DLQWHQDQFH RI 5HFRUGV *5$17(( VKDOO PDLQWDL Q UHFRUGV
LQFOXGLQJEXWQRWOLPLWHGWRERRNVILQDQFLDOUHFRUGVVXSSRUWLQJGRFXPHQWV VWDWLVWLFDO UHFRUGV SHUVRQQHO SURSHUW\ DQG DOO RWKHU SHUWLQHQW UHFRUGV VXIILFLHQWWRUHIOHFW SURSHUO\
D $OOGLUHFWDQGLQGLUHFWFRVWVRIZKDWHYHUQDWXUHFODLPHGWR KDYHEHHQLQFXUUHGDQG
DQWLFLSDWHGWREHLQFXUUHGWRSHUIRUP WKLV$*5((0(17DQG
E $OO RWKHU PDWWHUV FRYHUHG E\ WKLV $*5((0(17 6XFK UHFRUGV VKDOO EH PDLQWDLQHGLQDFFRUGDQFHZLWKUHTXLUHPHQWVQRZRUKHUHDIWHUSUHVFULEHGE\&,7<
3UHVHUYDWLRQRI5HFRUGV*5$17(( VKDOO SUHVHUYH DQG PDNH DYDLODEOH LWV UHFRUGV
D IRUDSHULRGRIILYH
\HDUVIURPWKHGDWHRIILQDOSD\PHQWWR *5$17((XQGHU WKLV$*5((0(17
RU
E IRUVXFKORQJHUSHULRGLIDQ\DVPD\EHUHTXLUHGE\ DSSOLFDEOHODZ
RU
F LIWKLV$*5((0(17LVFRPSOHWHO\RUSDUWLDOO\WHUPLQDWHGIRU DSHULRGRIILYH
\HDUVIURPWKHGDWHRIDQ\UHVXOWLQJILQDO VHWWOHPHQW
*5$17((PDNHDOOUHDVRQDEOHHIIRUWVWRPHHW&,7<¶VUHTXHVWVIRU UHFRUGVRURWKHU GHPDQGV WR HQVXUH WKH SDUWLHV¶ FRPSOHWLRQ RI ILQDQFLDO SHUIRUPDQFH DQG FRPSOLDQFH UHSRUWLQJ REOLJDWLRQV FRQVLVWHQW ZLWK DSSOLFDEOH ODZV UHJXODWL RQV DQG JXLGDQFH LQFOXGLQJ UHTXHVWV PDGH E\ WKH 86 7UHDVXU\ DQG WKH *RYHUQPHQW $FFRXQWDELOLW\ 2IILFH
³*$2´
$53$ 6XEUHFLSLHQ W
([DPLQDWLRQRI5HFRUGV
)DFLOLWLHV$WDQ\WLPHGXULQJQRUPDOE XVLQHVVKRXUV DQGDV RIWHQ DVPD\EH GHHPHGQHFHVVDU\E\ &,7<*5$17((DJUHHVWKDW &,7<DQGRUDQ\RI LWVDXWKRUL]HGUHSUHVHQWDWLYHVVKDOO
D IRUDSHULRGRIILYH
\HDUVDIWHUILQDOSD\PHQWXQGHU
WKLV$*5((0(17
RU
E IRUVXFKORQJHUSHULRGDVPD\EHUHTXLUHGE\DSSOLFDEOHODZ RU
F LIWKLV$*5((0(17LVFRPSOHWHO\RUSDUWLDOO\WHUPLQDWHGIRU DSHULRGRIILYH
\HDUVIURPWKHGDWHRIDQ\UHVXOWLQJVHWWOHPHQW
G KDYHDFFHVVWRDQGWKHULJKWWRH[DPLQHLWVSODQWVRIILFHVDQGIDFLOLWLHVHQJDJHG LQSHUIRUPDQFH RI WKLV$*5((0(17 DQG DOOLWV UHFRUGV ZLWK UHVSHFWWR DOO PDWWHUV FRYHUHGE\WKLV$*5((0(17
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
$XGLWRI5HFRUGV,IDQDXGLWLVUHTXLUHGWKHIROORZLQJSURYLVLRQVDSSO\
D )XQGV IURP WKH VXEDZDUG ZLOO EH VHW DVLGH LQ *5$17((¶V EXGJHW I RU WKH LQGHSHQGHQWDXGLW$VHSDUDWHOLQHLWHPZLOOEHHVWDEOLVKHG
E *5$17((VKDOOHQWHULQWRDQDJUHHPHQWZLWKDQLQGHSHQGHQWSXEOLF DFFRXQWDQW
FHUWLILHGWRSUDFWLFHLQWKH6WDWHRI&DOLIRUQLDQRODWHUWKDQ VL[W\
GD\VEHIRUH
WKHHQG RIWKLV$*5((0(17WRSHUIRUPDXGLW RI *5$17((¶V ILVFDO \HDU ZKLFK HQGV FRQFXUUHQWO\ ZLWK RU LPPHGLDWHO\ DIWHU WKH HQG RI WKLV $*5((0(17
F 7KH DXGLW PXVW EH FRPSOHWHG DQG VHQW WR &,7<¶V )LQDQFH'HSDUWPH QW VWDII ZLWKLQWKHODWHURIRQHKXQGUHGILIW\
GD\VRIWKHHQGRIWKLV$*5((0(17
RU QLQHW\
GD\V DIWHU WKH HQG RI *5$17((¶VILVFDO\HDU
G ,I *5$17(( GRHV QRW HQWHU LQWR WKH DJUHHPHQW ZLWK DQ LQGHSHQGHQW SXEOLF DFFRXQWDQW FHUWLILHG WR SUDFWLFH LQ WKH 6WDWH RI &DOLIRUQLD RU LIDQ DXGLWLVQRW FRPSOHWHGLQD WLPHO\ PDQQHU &,7< DW LWV VROH GLVFUHWLRQPD\HQWHULQWRDQ DJUHHPHQWZLWKDQLQGHSHQGHQWSXEOLF DFFRXQWDQWFHUWLILHGWRSUDFWLFHLQWKH6WDWH RI&DOLIRUQLDWRSHUIRUP WKHDXGLWDQGXWLOL]H*5$17((¶VVHWDVLGHIXQGVIRUWKH DXGLW
$53$ 6XEUHFLSLHQ W
H 7KHLQGHSHQGHQWILVFDODXGLWVKDOOFRQIRUPWRJHQHUDOO\DFFHSWH G JRYHUQPHQWDO DXGLWLQJ SULQFLSDOV DQG ZKHQ DSSOLFDEOH2IILFH RI 0DQDJHPHQW DQG6XSHU &LUFXODU³$WWDFKPHQW 3 $XGLW 5HTXLUHPHQWV´ 6XFK DXGLWV VKDOO LGHQWLI\ WKH IXQGVUHFHLYHGDQGGLVEXUVHGXQGHUWKLV$*5((0(17DQGLQFOXGHWKHIROORZLQJ
FRPSRQHQWV
L %DODQFHVKHHW
LL 6WDWHPHQWRI)LQDQFLDO3RVLWLRQ
LLL 6WDWHPHQWRI6XSSRUW5HYHQXHDQG([SHQVHVDQG&KDQJHV LQ )XQG%DODQFHV RU6WDWHPHQW$FWLYLWLHV
LY 6WDWHPHQWRI )XQFWLRQDO([SHQVHV
Y ,QGHSHQGHQW $XGLWRU¶V 5HSRUW RQ WKH )LQDQFLDO 6WDWHPHQW DQG 6FKHGXOHRI
([SHQGLWXUHVRI)HGHUDO$ZDUGV
YL $XGLWRU¶V 5HSRUW RQ ,QWHUQDO &RQWURO RYHU )LQDQFLDO 5HSRUWLQJ D QG RQ
&RPSOLDQFHDQG2WKHU0DWWHUV
YLL $XGLWRU¶V 5HSRUW RQ &RPSOLDQFH ZLWK 5HTXLUHPHQWV $SSOLFDEOH WR 0DMRU
3URJUDPV DQG RQ ,QWHUQDO &RQWURO RYHU &RPSOLDQFH
YLLL 6FKHGXOHRI)LQGLQJVDQG4XHVWLRQHG&RVWV
L[ 6XPPDU\RI6FKHGXOHRI3ULRU$XGLW)LQGLQJV
[ &RUUHFWLYH $FWLRQ3ODQ
[L 'DWD&ROOHFWLRQ)RUP
DQG
[LL &RPPXQLFDWLRQ RI ,QWHUQDO &RQWURO 5HODWHG 0DWHUV ,GHQWLILHG LQDQ $XGLW
0DQDJHPHQW /HWWHU
IURP $XGLWRU
LI RQH ZDV LVVXHG
I )RU JUDQWHHV WKDW H[SHQG RU PRUH RI )HGHUDO ILQDQFLDO DVVLVWDQFHLQ DILVFDO\HDU LQDGGLWLRQWR FRQGXFWLQJQRUPDOILQDQFLDO DXGLW SURFHGXUHV WKH *5$17((¶VLQGHSHQGHQW SXEOLF DFFRXQWDQW FHUWLILHGWRSUDFWLFHLQWKH6WDWH RI &DOLIRUQLDVKDOOSHUIRUPWHVWVWR DVFHUWDLQWKDW
([SHQGLWXUHVVXEPLWWHGIRUUHLPEXUVHPHQWDUHDOORZDEOHXQGHU &)5
D ([SHQGLWXUHVFRPSO\ZLWKWKH$JUHHPHQWEHWZHHQ&,7<DQG*5$17((
DQG
$53$ 6XEUHFLSLHQ W
E $SSOLFDEOH ODZV DQG UHJXODWLRQV )XUWKHU WKH LQGHSHQGHQW SXEOLF DFFRXQWDQWFHUWLILHGWRSUDFWLFHLQWKH 6WDWHRI&DOLIRUQLDVKDOOUHQGHUDQ RSLQLRQDVWRZKHWKHUWKH([SHQGLWXUHVFRPSOLHGZLWKWKH6LQJOH$XGLW$FW RI
DQG $SSHQGL[;,WR&)53DUW²&RPSOLDQFH6XSSOHPHQW SUHYLRXVO\NQRZQDVWKH&LUFXODU$&RPSOLDQFH 6XSSOHPHQW
DQG
F )XQGVIURPWKHVXEDZDUGPD\EHVHWDVLGHLQ*5$17((VEXGJHWIRU D UHDVRQDEOHVKDUHRID6LQJOH$XGLWLIUHTXLUHG$VHSDUDWHOLQHLWHPZLOOEH HVWDEOLVKHG
J )RU*5$17((6WKDWH[SHQGPRUHWKDQRIILQDQFLDODVVLVWDQFH LQD ILVFDO \HDUWKHDXGLWVKDOOLGHQWLI\LQD6FKHGXOHRI*RYHUQPHQWDO )LQDQFLDO$VVLVWDQFH WKH JURVV DPRXQWV RI JUDQWV REWDLQHG E\ *5$17(( IURP DOO JRYHUQPHQWDO VRXUFHVWKHSHULRGVFRYHUHGE\ WKHJUDQWVDQGWKHJUDQWFRQWUDFWRULGHQWLILFDWLRQ QXPEHU
V
LI DQ\ XQGHU ZKLFK IXQGV ZHUH UHFHLYHG DQG GLVEXUVHG E\ *5$17(( GXULQJ WKH DXGLWHG ILVFDO \HDU ,Q DGGLWLRQ WKH 6FKHGXOH RI *RYHUQPHQWDO)LQDQFLDO$VVLVWDQFHVKDOOVKRZWKHDPRXQWUHFHLYHGDQG GLVEXUVHG XQGHU HDFK JUDQW GXULQJ WKH DXGLWHG ILVFDO \HDU LQFOXGLQJWKHDPRXQWUHFHLYHG DQGGLVEXUVHGXQGHU WKLV$*5((0(17
K *5$17((¶V LQGHSHQGHQWSXEOLFDFFRXQWDQW FHUWLILHGWR SUDFWLFH LQ WKH6WDWHRI &DOLIRUQLDVKDOOSHUIRUP UHYLHZV RI *5$17((¶V LQWHUQDO FRQWURO V\VWHPV DQG *5$17((¶VFRPSOLDQFHZLWKDSSOLFDEOHODZV UHJXODWLRQVDQGWKHUHTXLUHPHQWV RI WKLV$*5((0(17
7KHLQGHSHQGHQWSXEOLFDFFRXQWDQWFHUWLILHGWRSUDFWLFHLQWKH6WDWH RI&DOLIRUQLD VKDOO LVVXH D UHSRUW RQ WKH ILQDQFLDO VWDWHPHQWV DQG WKH 6FKHGXOH RI *RYHUQPHQWDO )LQDQFLDO $VVLVWDQFH D UHSRUW RQ WKH VWXG\DQGHYDOXDWLRQRI LQWHUQDOFRQWUROVDQGDUHSRUWRQ*5$17(( FRPSOLDQFH7KHWKUHHUHSRUWVPD\ EH ERXQG LQWR D VLQJOH UHSRUW RU SUHVHQWHG DW WKH VDPH WLPH DV VHSDUDWH GRFXPHQWV
'LVDOORZHGRU,QHOLJLEOH&RVWV,ILWLVGHWHUPLQHGGXULQJWKH FRXUVHRIWKHDXGLWWKDW *5$17(( ZDV UHLPEXUVHG IRU XQDOORZDEOH FRVWV RU IRU LQHOLJLEOHXVHV XQGHU WKLV $JUHHPHQW *5$17(( DJUHHV WR SURPSWO\ UHLPEXUVH WKH &,7< IRU VXFK SD\PHQWV XSRQUHTXHVW
[ )LVFDO5HVSRQVLELOLWLHVRI*5$17((*5$17((VKDOO
$ $SSRLQWDQGVXEPLWWR&,7<WKHQDPHRIDILVFDODJHQWZKRVKDOOEHUHVSRQVLEOH IRU WKH ILQDQFLDODQG DFFRXQWLQJ DFWLYLWLHV RI WKH*5$17(( LQFOXGLQJ WKH UHFHLSWDQG GLVEXUVHPHQWRI*5$17((IXQGV
% (VWDEOLVK DQG PDLQWDLQ D V\VWHP RI DFFRXQWV WKDW VKDOO EH LQ FR QIRUPDQFH ZLWK
JHQHUDOO\ DFFHSWHG SULQFLSOHV RI DFFRXQWLQJ IRUEXGJHWHG IXQGV 6 X F K V\VWHPRI DFFRXQWVVKDOOEHVXEMHFWWRUHYLHZDQGDSSURYDORI&,7<
$53$ 6XEUHFLSLHQ W
& 'RFXPHQW DOO FRVWV E\ PDLQWDLQLQJFRPSOHWH DQG DFFXUDWH UHFRUGV RI DOO ILQDQFLDO WUDQVDFWLRQV LQFOXGLQJ EXW QRW OLPLWHG WR FRQWUDFWV LQYRLFHV WLPH FDUGV FDVK UHFHLSWV YRXFKHUV FDQFHOHG FKHFNV EDQN VWDWHPHQWV DQGRU RWK HU RIILFLDO GRFXPHQWDWLRQHYLGHQFLQJLQSURSHUGHWDLOWKHQDWXUHDQGSURSULHW\ RIDOOFKDUJHV
' 6XEPLW WR WKH &,7< ZLWKLQ WKLUW\
FDOHQGDU GD\V RI WKH HQG RI WKH SUHFHGLQJ
PRQWKUHTXHVWVIRUUHLPEXUVHPHQWWRJHWKHUZLWKGRFXPHQWDWLRQUHTXLUHG E\&,7<
( &HUWLI\ LQVXUDELOLW\ VXEMHFW WR &,7< DSSURYDO DV RXWOLQHG LQ 3DUDJUDSK RI WKH $JUHHPHQWHQWLWOHG
³,1685$1&(´
) 6XEPLW WR &,7< DW VXFK WLPHV DQG LQ VXFK IRUPV DV &,7< PD\ UHTX LUH VXFK
VWDWHPHQWV UHFRUGVUHSRUWV GDWD DQG LQIRUPDWLRQ SHUWDLQLQJWR PDWWHUV FRYHUHGE\ WKH$JUHHPHQW
* $GPLQLVWHU DOO SURJUDPV LQ FRQIRUPDQFH ZLWK 20% &LUFXODU $ ³ & R V W
3ULQFLSOHV IRU 1RQ3URILW2UJDQL]DWLRQV´ 7KHVH SULQFLSOHV VKDOO EH DSSOLHG IRUDOO FRVWVLQFXUUHGZKHWKHUFKDUJHGLQDGLUHFWRULQGLUHFWEDVLV
+ 'HYHORSDQLQGLUHFWFRVWDOORFDWLRQSODQIRUGHWHUPLQLQJWKHDSSURSULDWH *5$17((¶V
VKDUHRIDGPLQLVWUDWLYHFRVWVLILQGLUHFWFRVWVDUHFKDUJHGDQG VXEPLWVXFKSODQWRWKH &,7<IRUDSSURYDOLQDIRUPVSHFLILHGE\WKH&,7< SULRUWRVXEPLWWLQJUHLPEXUVHPHQW UHTXHVWV
[L &RPSOLDQFHZLWK/DZV
$ )HGHUDOUHJXODWLRQVDSSOLFDEOHWRWKLVDZDUGLQFOXGHZLWKRXWOLPLWDWLRQWKHIROORZLQJ
L 8QLIRUP $GPLQLVWUDWLYH 5HTXLUHPHQWV &RVW 3ULQFLSOHV DQG $XGLW 5HTXLUHPHQWV IRU )HGHUDO $ZDUGV &)5 3DUW RWKHU WKDQ VXFK SURYLVLRQVDV7UHDVXU\ PD\GHWHUPLQHDUHLQDSSOLFDEOHWRWKLV$ZDUGDQG VXEMHFW WR VXF K H[FHSWLRQV DV PD\ EH RWKHUZLVH SURYLGHG E\ 7UHDVXU\ 6XESDUW)±$XGLW5HTXLUHPHQWVRIWKH 8QLIRUP*XLGDQFHLPSOHPHQWLQJ WKH6LQJOH$XGLW$FWVKDOODSSO\WRWKLVDZDUG
LL 8QLYHUVDO,GHQWLILHUDQG6\VWHPIRU$ZDUG0DQDJHPHQW 6$0
&)5 3DUW
SXUVXDQW WRZKLFK WKH DZDUG WHUP VHW IRUWK LQ $SSHQGL[ $WR &)53DUWLV KHUHE\LQFRUSRUDWHGE\UHIHUHQFH
LLL 5HSRUWLQJ6XEDZDUGDQG([HFXWLYH&RPSHQVDWLRQ,QIRUPDWLRQ&)5 3DUW SXUVXDQWWRZKLFKWKHDZDUGWHUPVHWIRUWKLQ$SSHQGL[$WR& )53DUWLV KHUHE\LQFRUSRUDWHGE\UHIHUHQFH
LY 20% *XLGHOLQHV WR $JHQFLHV RQ *RYHUQPHQW ZLGH 'HEDUPHQW DQG 6XVSHQVLRQ
1RQSURFXUHPHQW
&)53DUWLQFOXGLQJWKH UHTXLUHPHQW WR LQFOXGH D WHUP RU FRQGLWLRQ LQ DOO ORZHU WLHU FRYHUHG WUDQVDFWLRQV $JUHHPHQWV DQG
$53$ 6XEUHFLSLHQ W
6XEFRQWUDFWRUV GHVFULEHG LQ &)5 3DUW VXESDUW % WKDW WKH DZDUG LV
VXEMHFW WR &)5 3DUW DQG 7UHDVXU\¶VLPSOHPHQWLQJUHJXODWLRQDW&)5 3DUW
Y 6XEUHFLSLHQW ,QWHJULW\ DQG 3HUIRUPDQFH 0DWWHUV SXUVXDQW WR ZKLFK WKH DZDUG
WHUP VHW IRUWK LQ &)5 3DUW $SSHQGL[ ;,, WR 3DUW L V KHUHE\ LQFRUSRUDWHGE\UHIHUHQFH
YL *RYHUQPHQWZLGH5HTXLUHPHQWVIRU'UXJ)UHH:RUNSODFH&)53DUW
YLL 1HZ5HVWULFWLRQVRQ/REE\LQJ&)53DUW
YLLL 8QLIRUP 5HORFDWLRQ $VVLVWDQFH DQG 5HDO 3URSHUW\ $FTXLVLWLRQV $FW RI
86&
DQGLPSOHPHQWLQJUHJXODWLRQV
L[ *HQHUDOO\DSSOLFDEOHIHGHUDOHQYLURQPHQWDOODZVDQGUHJXODWLRQV
[ $Q\RWKHUDSSOLFDEOHODZRUUHJXODWLRQLQFOXGLQJWKH)LQDO5XO HDQG&RPSOLDQFH 5HSRUWLQJ*XLGHOLQHVWRWKHH[WHQWDSSOLFDEOHZKHQGLVEXUVLQJ$53$)XQGVWR UHFLSLHQWVRUZKHQVHHNLQJ5HLPEXUVHPHQWIURPWKH&,7<
% 6WDWXWHV DQG UHJXODWLRQVSURKLELWLQJ GLVFULPLQDWLRQ DSSOLFDEOH WR WKLVDZDUG LQFOXGHZLWKRXWOLPLWDWLRQWKHIROORZLQJ
L 7LWOH9,RIWKH&LYLO5LJKWV$FWRI
7LWOH9,
3XEOLF/DZ86&
GHWVHTDQGWKH'HSDUWPHQW¶VLPSOHPHQWLQJUHJXODWLRQV&)5SDUW
6HFWLRQRIWKH5HKDELOLWDWLRQ$FWRI
6HFWLRQ
3XEOLF/DZ
DV DPHQGHG E\ 3XEOLF /DZ
86&
7LWOH ,; RI WKH (GXFDWLRQ
$PHQGPHQWVRI
7LWOH,;
86&HWVHTDQGWKH 'HSDUWPHQW
V
LPSOHPHQWLQJUHJXODWLRQV&)5SDUWZKLFKSURKLELW GLVFULPLQDWLRQ RQ WKH EDVLV RI UDFHFRORU RUQDWLRQDO RULJLQXQGHU SURJUDPVRUDFWL YLWLHVUHFHLYLQJ IHGHUDOILQDQFLDODVVLVWDQFH
LL 7KH)DLU+RXVLQJ$FW7LWOH9,,,RIWKH&LYLO5LJKWV$FWRI
86&HWVHT
ZKLFKSURKLELWVGLVFULPLQDWLRQLQKRXVLQJRQ WKHEDVLVRI UDFHFRORUUHOLJLRQQDWLRQDORULJLQVH[IDPLOLDOVWDWXVRU GLVDELOLW\
LLL 6HFWLRQRIWKH5HKDELOLWDWLRQ$FWRI
DV DPHQGHG
8 6&
ZKLFKSURKLELWVGLVFULPLQDWLRQRQWKHEDVLVRIGLVDELOLW\XQGHU DQ\ SURJUDPRU DFWLYLW\UHFHLYLQJIHGHUDOILQDQFLDODVVLVWDQFH
LY 7KH$JH'LVFULPLQDWLRQ$FWRI
DVDPHQGHG
86& HW VHT
DQG 7UHDVXU\¶V LPSOHPHQWLQJ UHJXODWLRQV DW &)5 3DUW ZKLFKSURKLELW GLVFULPLQDWLRQ RQ WKH EDVLV RI DJH LQ SURJUDPV RU DFWLYLWLHV UHFHLYLQJ IHGHUDO ILQDQFLDODVVLVWDQFH
DQG
$53$ 6XEUHFLSLHQ W
Y 7LWOH,,RIWKH$PHULFDQVZLWK'LVDELOLWLHV$FWRI
DVDPHQGHG
86&HWVHT
ZKLFKSURKLELWVGLVFULPLQDWLRQRQWKHEDVLVRI GLVDELOLW\ XQGHU SURJUDPV DFWLYLWLHV DQG VHUYLFHV SURYLGHG RU PDGH DYDLODEOHE\VWDWH DQGORFDOJRYHUQPHQWVRULQVWUXPHQWDOLWLHVRUDJHQFLHV WKHUHWR
& *5$17(( ZLOODOVR REWDLQ DQG PDLQWDLQ DOO OLFHQVHV DQG SHUPLWVDSSURSULDWHWR LWV SURSHU DQG HIIHFWLYH SHUIRUPDQFH RI WKH $JUHHPHQW SULRU WR WKH GDWH RI FRPPHQFHPHQW *5$17((LVUHVSRQVLEOHIRUFRQWDFWLQJWKHDSSURSULDWHRIILFHVDQG ILOLQJWKHQHFHVVDU\ GRFXPHQWVWRFRPSO\ZLWKWKHVHUHTXLUHPHQWV
[LL 5HPHGLDO$FWLRQV,QWKHHYHQWRI*5$17((¶VQRQFRPSOLDQFHZLWKVHFWLRQRI W KH $FW RWKHU DSSOLFDEOH ODZV 7UHDVXU\¶V LPSOHPHQWLQJ UHJXODWLRQV JXLGDQFH RU DQ\ UHSRUWLQJ RU RWKHUSURJUDP UHTXLUHPHQWV 7UHDVXU\ PD\ LPSRVH DGGLWLRQDO FRQGLWLRQV RQ WKH UHFHLSW RI D VXEVHTXHQW WUDQFKH RI IXWXUH DZDUG IXQGV LI DQ\ RU WDNH RWKHU DYDLODEOH UHPHGLHV DV VHW IRUWK LQ &)5 ,Q WKH FDVH RI D YLRODWLRQRI
VHFWLRQ
F
RIWKH$FWUHJDUGLQJWKHXVHRIIXQGVSUHYLRXVSD\PHQWV VKDOO EH VXEMHFW WR UHFRXSPHQW DV SURYLGHG LQ VHFWLRQ
H
RI WKH $FW DQG DQ\DGGLWLRQDOSD\PHQWV
PD\EHVXEMHFWWRZLWKKROGLQJDVSURYLGHGLQVHFWLRQV E
$
LL
,,,
RIWKH$FWDV
DSSOLFDEOH
[LLL +DWFK$FW*5$17((DJUHHVWRFRPSO\DVDSSOLFDEOHZLWKUHTXLUHPHQWVRI WKH+DWFK $FW
86& DQG
ZKLFK OLPLW FHUWDLQ SROLWLFDO DFWLYLWLHV RI
6WDWHRUORFDOJRYHUQPHQWHPSOR\HHVZKRVHSULQFLSDOHPSOR\PHQW LVLQFRQQHFWLRQZLWK
DQDFWLYLW\ILQDQFHGLQZKROHRULQSDUWE\WKLVIHGHUDODVVLVWDQFH
[LY )DOVH 6WDWHPHQWV *5$17(( XQGHUVWDQGV WKDW PDNLQJ IDOVH VWDWHPHQWV RU FODLPV LQ FRQQHFWLRQZLWKWKLVDZDUGLVDYLRODWLRQRIIHGHUDOODZDQGPD\UHVXOWLQFULPLQDO FLYLO RUDGPLQLVWUDWLYHVDQFWLRQVLQFOXGLQJILQHVLPSULVRQPHQWFLYLOGDPDJHVDQG SHQDOWLHV GHEDUPHQWIURPSDUWLFLSDWLQJLQIHGHUDODZDUGVRU$JUHHPHQWVDQGRUDQ\ RWKHUUHPHG\ DYDLODEOHE\ODZ
[Y 3XEOLFDWLRQV $Q\ SXEOLFDWLRQV SURGXFHG ZLWK IXQGV IURP WKLV DZDUG PXVW GLVSOD\
WKH IROORZLQJ ODQJXDJH
³7KLV SURMHFW >LV EHLQJ@ >ZDV@ VXSSRUWHG LQ ZKROHRULQSDUW E\ IHGHUDO DOORFDWLRQ QXPEHU 6/7 DOORFDWHG WR WKH &LW\ RI$ODPHGD E\ WKH 86 'HSDUWPHQWRIWKH7UHDVXU\´
[YL 'HEWV2ZHGWKH)HGHUDO*RYHUQPHQW
$Q\IXQGVSDLGWRWKH*5$17((
LQH[FHVVRIWKHDPRXQWWRZKLFK*5$17((LV
ILQDOO\GHWHUPLQHGWREHDXWKRUL]HGWRUHWDLQXQGHUWKHWHUPV R I WKLV DZDUG
WKDW
DUH GHWHUPLQHG E\ WKH 7UHDVXU\ 2IILFH RI ,QVSHFWRU *HQHUDOWRKDYHEHHQPLVXVHG
RU
WKDW DUH GHWHUPLQHG E\ 7UHDVXU\ WR EH
VXEMHFW WR DUHSD\PHQW REOLJDWLRQ
SXUVXDQW WR VHFWLRQV
H
DQG
E
'
RIWKH$FWDQGKDY HQRWEHHQUHSDLG
E\WKH*5$17((VKDOO FRQVWLWXWHDGHEWWRWKHIHGHUDOJRYHUQPHQW
$Q\GHEWVGHWHUPLQHGWREHRZHGWRWKHIHGHUDOJRYHUQPHQWPXVW EHSDLG SURPSWO\
$53$ 6XEUHFLSLHQ W
E\*5$17(($GHEWLVGHOLQTXHQWLILWKDVQRWEHHQSDLGE\WKH GDWHVSHFLILHGLQ 7UHDVXU\¶VLQLWLDOZULWWHQGHPDQGIRUSD\PHQWXQOHVVRWKHU VDWLVIDFWRU\DUUDQJHPHQWV KDYHEHHQPDGHRULIWKH*5$17((NQRZLQJO\ RULPSURSHUO\UHWDLQVIXQGVWKDWDUH D GHEW DV GHILQHG LQ SDUDJUDSK
D
7UHDVXU\ZLOOWDNHDQ\DFWLRQVDYDLODEOHWRLWWR
FROOHFWVXFKDGHEW
[YLL 'LVFODLPHU
7KH 8QLWHG 6WDWHV H[SUHVVO\ GLVFODLPV DQ\ DQG DOO UHVSRQVLELOLW \ RU OLDELOLW\ WR
*5$17((RUWKLUGSHUVRQVIRUWKHDFWLRQVRI*5$17((RUWKLUGSH UVRQV UHVXOWLQJ LQ GHDWK ERGLO\ LQMXU\ SURSHUW\ GDPDJHV RU DQ\ RWKHU ORVVHV UHVXOWLQJLQDQ\ ZD\IURPWKHSHUIRUPDQFHRIWKLVDZDUGRUDQ\RWKHUORVVHV UHVXOWLQJLQDQ\ZD\IURP WKHSHUIRUPDQFHRIWKLVDZDUGRUDQ\$JUHHPHQW RU6XEFRQWUDFWRUXQGHUWKLVDZDUG
7KHDFFHSWDQFHRIWKLVDZDUGE\*5$17((GRHVQRWLQDQ\ZD\HVWDEOLVK DQDJHQF\ UHODWLRQVKLSEHWZHHQWKH8QLWHG6WDWHVDQG*5$17((
[YLLL 3URWHFWLRQVIRU:KLVWOHEORZHUV
,Q DFFRUGDQFH ZLWK 86& *5$17(( PD\ QRW GLVFKDUJHG H P R W H R U RWKHUZLVHGLVFULPLQDWHDJDLQVWDQHPSOR\HHLQUHSULVDOIRUGLVFORVLQJWRDQ\RI WKH OLVW RI SHUVRQV RU HQWLWLHV SURYLGHG EHORZ LQIRUPDWLRQ WKDW WKH HPS OR\HH UHDVRQDEO\ EHOLHYHVLVHYLGHQFHRIJURVVPLVPDQDJHPHQWRIDIHGHUDO$JUHHPHQW RUJUDQWDJURVV ZDVWHRIIHGHUDOIXQGVDQDEXVHRIDXWKRULW\UHODWLQJWRDIHGHUDO $JUHHPHQWRUJUDQWD VXEVWDQWLDODQGVSHFLILFGDQJHUWRSXEOLFKHDOWKRUVDIHW\ RUDYLRODWLRQRIODZUXOHRU UHJXODWLRQUHODWHGWRDIHGHUDO$JUHHPHQW
LQFOXGLQJ WKHFRPSHWLWLRQIRURUQHJRWLDWLRQ
RIDQ$JUHHPHQW
RUJUDQW
7KH OLVW RI SHUVRQV DQG HQWLWLHV UHIHUHQFHG LQ WKH SDUDJUDSK DE RYH LQFOXGHV WKH
IROORZLQJ
L$PHPEHURI&RQJUHVVRUDUHSUHVHQWDWLYHRIDFRPPLWWHHRI&RQJUHVV
LL $Q,QVSHFWRU*HQHUDO
LLL7KH*RYHUQPHQW$FFRXQWDELOLW\2IILFH
LY $7UHDVXU\HPSOR\HHUHVSRQVLEOHIRU$JUHHPHQWRUJUDQWRYHUVLJKWRU
PDQDJHPHQW
Y $QDXWKRUL]HGRIILFLDORIWKH'HSDUWPHQWRI-XVWLFHRURWKHUODZHQIRUFHPHQW DJHQF\
YL $FRXUWRUJUDQGMXU\
RU
$53$ 6XEUHFLSLHQ W
YLL$PDQDJHPHQWRIILFLDORURWKHUHPSOR\HHRI*5$17((&RQWUDFWRURU 6XEFRQWUDFWRUZKRKDVWKHUHVSRQVLELOLW\WRLQYHVWLJDWHGLVFRYHURUDGGUHVV PLVFRQGXFW
& *5$17(( VKDOO LQIRUP LWV HPSOR\HHV LQ ZULWLQJ RI WKH ULJKWV DQGU H P H G L H V SURYLGHGXQGHUWKLVVHFWLRQLQWKHSUHGRPLQDQWQDWLYHODQJXDJHRIWKHZRUNIRUFH
[L[ ,QFUHDVLQJ 6HDW %HOW 8VH LQ WKH 8QLWHG 6WDWHV 3XUVXDQW WR ([HFXWLYH 2UGHU )5
$SU
*5$17(( VKRXOG HQFRXUDJH LW V
&RQWUDFWRUV WR DGRSWDQG HQIRUFHRQWKHMREVHDW EHOWSROLFLHVDQGSURJUDPV IRU WKHLU HPSOR\HHV ZKHQ RSHUDWLQJ FRPSDQ\RZQHG UHQWHG RUSHUVRQDOO\RZQHG YHKLFOHV
[[ 5HGXFLQJ7H[W0HVVDJLQJ:KLOH'ULYLQJ3XUVXDQWWR([HFXWLYH2UGHU )5
2FW
*5$17(( VKRXOG HQFRXUDJH LWV HPSOR\HHV
6XEUHFLSLHQWV DQG &RQWUDFWRUV WR DGRSW DQG HQIRUFH SROLFLHV WK DW EDQ WH[W PHVVDJLQJ ZKLOH GULYLQJ DQG *5$17(( VKRXOG HVWDEOLVK ZRUNSODFH VDIHW\ SROLFLHVWRGHFUHDVHDFFLGHQWVFDXVHGE\ GLVWUDFWHGGULYHUV
[[L ,PSURSHU,QIOXHQFH(DFKSDUW\ZDUUDQWVWKDWLWGLGQRWDQGZLOOQRWHPSOR\ UHWDLQRUFRQWUDFWZLWKDQ\SHUVRQRUHQWLW\RQDFRQWLQJHQWF RPSHQVDWLRQEDVLV IRUWKHSXUSRVHRIVHHNLQJREWDLQLQJPDLQWDLQLQJRUH[WHQGLQ JWKLV$JUHHPHQW (DFKSDUW\DJUHHVZDUUDQWVDQGUHSUHVHQWVWKDWQRJUDWXLW\ZK DWVRHYHUKDVEHHQ RU ZLOO RIIHUHG RU FRQIHUUHG ZLWK D YLHZ WRZDUGV REWDLQLQJ PDL QWDLQLQJ RU H[WHQGLQJWKLV$JUHHPHQW
[[LL &RQIOLFWRI,QWHUHVW 7KHHOHFWHGDQGDSSRLQWHGRIILFLDOVDQGHPSOR\HHVRIWKH SDUWLHVVKDOOQRWKDYHDQ\SHUVRQDOLQWHUHVWGLUHFWRULQGLUHF WZKLFKJLYHVULVHWR DFRQIOLFWRILQWHUHVW
[[LLL 6XUYLYDO7KHSURYLVLRQVRIWKLV$JUHHPHQWWKDWE\WKHLUVHQVHDQGSXUSRVHVKRXOG VXUYLYH H[SLUDWLRQ RU WHUPLQDWLRQ RI WKH $JUHHPHQW VKDOO VR VXU YLYH 7KRVH SURYLVLRQVLQFOXGHZLWKRXWOLPLWDWLRQ,QGHPQLILFDWLRQDQG0DLQWHQDQFHDQG$XGLW RI5HFRUGV
[[LY *RYHUQLQJ/DZ
9HQXH7KH$JUHHPHQWZLOOEHJRYHUQHGLQDOOUHVSHFWVE\WKH ODZVRIWKH6WDWHRI&DOLIRUQLDERWKDVWRLQWHUSUHWDWLRQDQGSHUIRUPDQFHZLWKRXW UHJDUGWRFRQIOLFWVRIODZRUFKRLFHRIODZSURYLVLRQV$Q\DFWLRQDULVLQJRXWRIRU LQFRQQHFWLRQZLWKWKH$JUHHPHQWPD\EHLQVWLWXWHGDQGPDLQWDLQHGRQO\LQDFRXUW RIFRPSHWHQWMXULVGLFWLRQLQ$ODPHGD&RXQW\&DOLIRUQLD
[[Y %LQGLQJ(IIHFW7KLV$JUHHPHQWVKDOOEHELQGLQJXSRQDQGLQXUHWRWKHEHQHILWRI WKHSDUWLHVKHUHWRDQGWKHLUUHVSHFWLYHVXFFHVVRUV
$53$ 6XEUHFLSLHQ W
[[YL &RXQWHUSDUWV7KLV$JUHHPHQWPD\EHH[HFXWHGLQRQHRUPRUHFRXQWHUSDUWVDQ\ RIZKLFKVKDOOEHGHHPHGDQRULJLQDOEXWDOORIZKLFKWRJHWKHUVKDOOFRQVWLWXWHRQH DQGWKHVDPHLQVWUXPHQW
[[YLL $XWKRUL]DWLRQ(DFKSDUW\VLJQLQJEHORZZDUUDQWVWRWKHRWKHUWKDWWKH\KDYHWKH IXOO SRZHU DQG DXWKRULW\ WR H[HFXWH WKLV $JUHHPHQW RQ EHKDOI RIW K H S D U W \ I R U ZKRPWKH\SXUSRUWWRVLJQ
$53$ 6XEUHFLSLHQ W
$6685$1&(62)&203/,$1&(:,7+&,9,/5,*+76
5(48,5(0(176
$6685$1&(62)&203/,$1&(:,7+
7,7/(9,2)7+(&,9,/5,*+76$&72)
$VDFRQGLWLRQRIUHFHLSW RIIHGHUDOILQDQFLDODVVLVWDQFHIURP WKH'HSDUWPHQWRIWKH 7UHDVXU\ WKH *5$17(( SURYLGHV WKH DVVXUDQFHV VWDWHG KHUHLQ 7K H IHGHUDO ILQDQFLDO DVVLVWDQFH PD\ LQFOXGH IHGHUDO JUDQWV ORDQV DQG $JUHHPHQWV WRSURYLGH DVVLVWDQFH WR WKH *5$17((¶VEHQHILFLDULHVWKHXVHRUUHQWRI)HGHUDOODQGRUSURSHUW\DWEHORZPDUNHWYDOXH )HGHUDO WUDLQLQJ D ORDQ RI )HGHUDO SHUVRQQHO VXEVLGLHV DQG RWKHU DUUDQJHPHQWV ZLWK WKH LQWHQWLRQ RI SURYLGLQJ DVVLVWDQFH )HGHUDO ILQDQFLDO DVVLVWDQFH GRHV QRW HQFRPSDVV $JUHHPHQWV RI JXDUDQWHH RU LQVXUDQFH UHJXODWHG SURJUDPV OLFHQ VHV SURFXUHPHQW $JUHHPHQWV E\ WKH )HGHUDO JRYHUQPHQW DW PDUNHW YDOXH RU SURJUDPV WKDW SURYLGH GLUHFW EHQHILWV
7KHDVVXUDQFHVDSSO\WRDOOIHGHUDOILQDQFLDODVVLVWDQFHIURPRUIXQGVPDGHDYDLODEOH WKURXJKWKH'HSDUWPHQW RIWKH7UHDVXU\LQFOXGLQJDQ\DVVLVWDQF HWKDWWKH*5$17((PD\ UHTXHVWLQWKHIXWXUH
7KH &LYLO 5LJKWV 5HVWRUDWLRQ $FW RI
SURYLGHV WKDW WKH SURY LVLRQV RI WKH
DVVXUDQFHVDSSO\WRDOORIWKHRSHUDWLRQVRIWKH*5$17((¶VSURJUDP V
DQGDFWLYLW\
LHV
VR
ORQJ DV DQ\SRUWLRQ RI WKH *5$17((¶V SURJUDP
V
RU DFWLYLW\
LHV
LV IHGHUDOO\DVVLVWHG LQ
WKHPDQQHUSUHVFULEHGDERYH
*5$17((HQVXUHVLWVFXUUHQWDQGIXWXUHFRPSOLDQFHZLWK7LWOH9, RIWKH&LYLO5LJKWV$FW RI
DVDPHQGHGZKLFKSURKLELWVH[FOXVLRQIURPSDUWLFLSDWLRQGHQLDORIWKHEHQHILWVRI RU VXEMHFWLRQ WR GLVFULPLQDWLRQ XQGHU SURJUDPV DQG DFWLYLWLHV UHFHLYLQJ IHGHUDO ILQDQFLDO DVVLVWDQFHRIDQ\SHUVRQLQWKH8QLWHG6WDWHVRQWKHJURXQGRIUDFHFRORURUQDWLRQDORULJLQ
86& Get seq.
DV LPSOHPHQWHG E\ WKH 'HSDUWPHQW RI WKH 7UHDVXU\ 7LWOH 9, UHJXODWLRQVDW&)53DUWDQGRWKHUSHUWLQHQWH[HFXWLYHRUGHUVVXFKDV([HFXWLYH2UGHU GLUHFWLYHVFLUFXODUVSROLFLHVPHPRUDQGDDQGRUJXLGDQFHGRFXPHQWV *5$17(( DFNQRZOHGJHV WKDW ([HFXWLYH 2UGHU ³,PSURYLQJ $FFHVV WR 6HUYLFHV IRU 3HUVRQV ZLWK /LPLWHG (QJOLVK 3URILFLHQF\´ VHHNV WR LPSURYH DFFHVV WR IHGHUDOO\ DVVLVWHG SURJUDPV DQG DFWLYLWLHV IRU LQGLYLGXDOV ZKR EHFDXVH RI QDWLRQDO RULJLQ KDYH /LPLWHG(QJOLVKSURILFLHQF\
/(3
*5$17((XQGHUVWDQGVWKDWGHQ\LQJDSHUVRQDFFHVV
WR LWV SURJUDPV VHUYLFHV DQG DFWLYLWLHV EHFDXVH RI /(3 LV D IRUP RI QDWLRQDO RULJLQ GLVFULPLQDWLRQ SURKLELWHG XQGHU 7LWOH 9, RI WKH &LYLO 5LJKWV $F W RI DQG WKH
'HSDUWPHQW RI WKH 7UHDVXU\¶V LPSOHPHQWLQJ UHJXODWLRQV $FFRUGLQJO\ *5$17(( VKDOO LQLWLDWHUHDVRQDEOHVWHSVRUFRPSO\ZLWKWKH'HSDUWPHQWRIWKH 7UHDVXU\¶VGLUHFWLYHVWR HQVXUHWKDW/(3SHUVRQVKDYHPHDQLQJIXODFFHVVWRLWVSURJUDPV VHUYLFHVDQGDFWLYLWLHV *5$17(( XQGHUVWDQGV DQG DJUHHV WKDW PHDQLQJIXO DFFHVV PD\ HQWDL O SURYLGLQJ ODQJXDJH DVVLVWDQFH VHUYLFHV LQFOXGLQJ RUDO LQWHUSUHWDWLRQ DQG ZULWWHQ WUDQVODWLRQ ZKHUH QHFHVVDU\ WR HQVXUH HIIHFWLYH FRPPXQLFDWLRQ LQ WKH *5$17((¶V SURJUDPV VHUYLFHV DQGDFWLYLWLHV
*5$17(( DJUHHV WR FRQVLGHU WKH QHHG IRU ODQJXDJH VHUYLFHV IRU /(3 SHUVRQV ZKHQ *5$17((GHYHORSVDSSOLFDEOHEXGJHWVDQGFRQGXFWVSURJUDPVVHUYLFHVDQGDFWLYLWLHV
$53$ 6XEUHFLSLHQ W
$VDUHVRXUFHWKH'HSDUWPHQWRIWKH7UHDVXU\KDVSXEOLVKHGLWV /(3JXLGDQFHDW)5 )RUPRUHLQIRUPDWLRQRQWDNLQJUHDVRQDEOHVWHSVWRSURYLGHP HDQLQJIXODFFHVVIRU /(3SHUVRQVSOHDVHYLVLWKWWS
ZZZOHSJRY
*5$17(( DFNQRZOHGJHV DQG DJUHHV WKDW FRPSOLDQFH ZLWK WKH DVVXUDQFHV FRQVWLWXWHV D FRQGLWLRQ RI FRQWLQXHG UHFHLSW RI IHGHUDO ILQDQFLDO DVVLVWDQFH DQG LV ELQGLQJ XSRQ *5$17(( DQG *5$17((¶V VXFFHVVRUV WUDQVIHUHHV DQG DVVLJQHHV IR U WKH SHULRG LQ ZKLFKVXFKDVVLVWDQFHLVSURYLGHG
*5$17((DFNQRZOHGJHVDQGDJUHHVWKDWLWPXVWUHTXLUHDQ\VXEJU DQWHHVFRQWUDFWRUV VXEFRQWUDFWRUV VXFFHVVRUV WUDQVIHUHHV DQG DVVLJQHHV WR FRPSO\ ZLWK DVVXUDQFHV DERYH DQG DJUHHV WR LQFRUSRUDWH WKH IROORZLQJ ODQJXDJH LQ HYHU \ $JUHHPHQW RU DJUHHPHQW VXEMHFW WR 7LWOH 9, DQG LWV UHJXODWLRQV EHWZHHQ WKH * 5$17(( DQG WKH *5$17((¶V VXEJUDQWHHV &RQWUDFWRUV 6XEFRQWUDFWRUV VXFFHVVRUV WUDQVIHUHHV DQG
DVVLJQHHV
The sub-grantee, Contractor, Subcontractor, successor, transferee, and assignee shall comply with Title VI of the Civil Rights Act of 1964, which prohibits GRANTEEs of federal financial assistance from excluding from a program or activity, denying benefits of, or otherwise discriminating against a person on the basis of race, color, or national origin (42 U.S.C. § 2000d et seq.), as implemented by the Department of the Treasury’s Title VI regulations, 31 CFR Part 22, which are herein incorporated by reference and made a part of this Agreement (or agreement). Title VI also includes protection to persons with “Limited English Proficiency” in any program or activity receiving federal financial assistance, 42
U.S.C. § 2000d et seq., as implemented by the Department of the Treasury’s Title VI regulations, 31 CFR Part 22, and herein incorporated by reference and made a part of this Agreement or agreement
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
*5$17(( VKDOO FRRSHUDWH LQ DQ\ HQIRUFHPHQW RU FRPSOLDQFH UHYLHZ DFWLYLWLHV E\ WKH 'HSDUWPHQWRIWKH7UHDVXU\RIWKHDIRUHPHQWLRQHGREOLJDWLRQV( QIRUFHPHQWPD\LQFOXGH LQYHVWLJDWLRQ DUELWUDWLRQ PHGLDWLRQ OLWLJDWLRQ DQG PRQLWRUL QJ RI DQ\ VHWWOHPHQW DJUHHPHQWV WKDW PD\ UHVXOW IURP WKHVH DFWLRQV 7KH *5$17(( VKDO O FRPSO\ ZLWK LQIRUPDWLRQUHTXHVWVRQVLWHFRPSOLDQFHUHYLHZVDQGUHSRUWLQJUHTXLUHPHQWV
*5$17(( VKDOOPDLQWDLQ D FRPSODLQW ORJDQGLQIRUP WKH'HSDUWPHQW RIWKH7UHDVXU\RI DQ\FRPSODLQWVRIGLVFULPLQDWLRQRQWKHJURXQGVRIUDFHFRORURUQDWLRQDORULJLQDQGOLPLWHG (QJOLVKSURILFLHQF\FRYHUHGE\7LWOH9,RIWKH&LYLO5LJKWV$FW RI DQGLPSOHPHQWLQJ
UHJXODWLRQVDQGSURYLGHXSRQUHTXHVWDOLVWRIDOOVXFKUHYLHZVRUSURFHHGLQJVEDVHGRQWKH
FRPSODLQWSHQGLQJRUFRPSOHWHGLQFOXGLQJRXWFRPH*5$17(( DOV RPXVWLQIRUPWKH 'HSDUWPHQW RIWKH7UHDVXU\LI*5$17((KDVUHFHLYHGQRFRPSODLQWVXQGHU7LWOH9,
*5$17(( PXVW SURYLGH GRFXPHQWDWLRQ RI DQ DGPLQLVWUDWLYH DJHQF\¶V RU FRXUW¶V ILQGLQJV RI QRQFRPSOLDQFH RI 7LWOH9,DQG HIIRUWV WR DGGUHVV WKHQRQFRPSOLDQFH LQFOXGLQJDQ\YROXQWDU\ FRPSOLDQFHRURWKHUDJUHHPHQWVEHWZHHQWKH*5$17((DQG WKHDGPLQLVWUDWLYHDJHQF\WKDWPDGH WKH ILQGLQJ ,I WKH *5$17(( VHWWOHV D FDVH RU PDWWHU DOOHJLQJ V XFK GLVFULPLQDWLRQ WKH *5$17(( PXVW SURYLGH GRFXPHQWDWLRQ RI WKH VHWWOHPHQW ,I *5$17( ( KDV QRW EHHQ WKH VXEMHFWRIDQ\FRXUWRUDGPLQLVWUDWLYH DJHQF\ILQGLQJRIGLVFULPLQDWLRQSOHDVHVRVWDWH
,I WKH *5$17(( PDNHV VXEDZDUGV WR RWKHU DJHQFLHV RU RWKHU HQWLWLHV WKH *5$17(( LV UHVSRQVLEOH IRU HQVXULQJ WKDW VXEJUDQWHHV DOVR FRPSO\ ZLWK 7LW OH 9, DQG RWKHU DSSOLFDEOH DXWKRULWLHV FRYHUHG LQ WKLV GRFXPHQW 6WDWH DJHQFLHV WKDW PDNH VXEDZDUGV PXVWKDYHLQSODFH VWDQGDUG JUDQW DVVXUDQFHV DQG UHYLHZ SURFHGXUHV WR GHPRQVWUDWHWKDW WKDW WKH\ DUH HIIHFWLYHO\ PRQLWRULQJWKHFLYLOULJKWVFRPSOLDQFHRIVXE*5$17((V
7KH8QLWHG 6WDWHV RI $PHULFDKDV WKH ULJKW WRVHHNMXGLFLDO HQIRUFHPHQW RIWKH WHUPVRIWKLV DVVXUDQFHV GRFXPHQW DQG QRWKLQJ LQ WKLV GRFXPHQW DOWHUV RU OLPLWV WKH IHGH UDO HQIRUFHPHQW PHDVXUHV WKDW WKH 8QLWHG 6WDWHV PD\WDNH LQ RUGHU WR DGGUHVV YLRODWLRQV RI WKLV GRFXPHQW RU DSSOLFDEOHIHGHUDOODZ
(;+,%,7'
68%5(&,3,(17',6&/2685(63(5&)56(&7,21
)LVFDO<HDU
$JHQF\1DPH
86'HSDUWPHQWRI7UHDVXU\
3URJUDP1DPH
&LW\RI$ODPHGD*XDUDQWHHG,QFRPH3LORW3URJUDP $PRXQWRI*UDQW
&)'$1XPEHU 1R
&)'$7LWOH
&RURQDYLUXV6WDWHDQG/RFDO)LVFDO5HFRYHU\
)XQG
1DPHRI)HGHUDO$JHQF\ 86'HSDUWPHQWRI7UHDVXU\
8QLTXH(QWLW\,GHQWLILHU8(,
6XEUHFLSLHQW1DPH 2SHUDWLRQ'LJQLW\
)HGHUDO$ZDUG'DWH
'DWHRIDZDUGWR&LW\E\
7UHDVXU\
0DUFK
)HGHUDO$ZDUG,GHQWLILFDWLRQ1XPEHU 6/7
6XEDZDUG 3HULRG RI 3HUIRUPDQFH 6WDUW DQG
(QG'DWH BBBBBBBBBBBBWR0D\
)HGHUDO)XQGV2EOLJDWHGE\WKLV$JUHHPHQW
9