Appendix F
Preliminary Geotechnical Evaluation
5(9,6('35(/,0,1$5<*HRWHFKQLFDO(YDOXDWLRQ
)25
3$&,),&*3$5(=21(
1RUWKZHVW&RUQHURI/LQGD9LVWD'ULYH /RV3RVDV5RDG 6$10$5&26&$/,)251,$
3 5(3$5(')25
7KH/DV3RVDV2ZQHU/39//&D'HODZDUHOLPLWHGOLDELOLW\FRPSDQ\ (QFLQLWDV%RXOHYDUG6XLWH
(QFLQLWDV&DOLIRUQLD
3 5(3$5('%<
*(27(.,1&
32,16(77,$$9(18(68,7($
9,67$&$/,)251,$
3 52-(&712
6'1 29(0%(5
*(27(&+1,&$/_(19,5210(17$/_0$7(5,$/6
-DQXDU\
5HYLVHG1RYHPEHU
3URMHFW1R
6'
7KH/DV3RVDV2ZQHU/39//&
D'HODZDUHOLPLWHGOLDELOLW\FRPSDQ\
(QFLQLWDV%RXOHYDUG6XLWH
(QFLQLWDV&DOLIRUQLD
$WWHQWLRQ
0U*UHJ:DLWH
6XEMHFW
5HYLVHG3UHOLPLQDU\*HRWHFKQLFDO(YDOXDWLRQ
3DFLILF*3$5H]RQH
1RUWKZHVW&RUQHURI/LQGD9LVWD'ULYH /RV3RVDV5RDG 6DQ0DUFRV&DOLIRUQLD
'HDU0U:DLWH
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
5HVSHFWIXOO\VXEPLWWHG
*HR7HN,QF
%UXFH$+LFN
*(
*HRWHFKQLFDO(QJLQHHU
&KULVWRSKHU'/LYHVH\
&(*
3URMHFW*HRORJLVW
(GZDUG/D0RQW
&(*
3ULQFLSDO*HRORJLVW
'LVWULEXWLRQ
$GGUHVVHHYLDHPDLO
7+(/$6326$62:1(5/39//&$'(/$:$5(/,0,7('/,$%,/,7<&203$1< 3URMHFW1R 6'
5HYLVHG3UHOLPLQDU\*HRWHFKQLFDO(YDOXDWLRQ 1RYHPEHU 3DFLILF*3$5H]RQH6DQ0DUFRV&DOLIRUQLD 3DJHL
7$%/(2)&217(176
385326($1'6&23(2)6(59,&(6 3523(57<'(6&5,37,21$1'352326(''(9(/230(17 3URSHUW\'HVFULSWLRQ )XWXUH'HYHORSPHQW ),(/'(;3/25$7,21$1'/$%25$725<7(67,1* )LHOG([SORUDWLRQ /DERUDWRU\7HVWLQJ *(2/2*,&$1'62,/6&21',7,216 5HJLRQDO6HWWLQJ ($57+0$7(5,$/6 8QGRFXPHQWHG)LOO
1RW0DSSHG
$OOXYLXP
0DS6\PERO4DO
7HUWLDU\6DQWLDJR)RUPDWLRQ
0DS6\PERO7VD
685)$&(:$7(5$1'*5281':$7(5 6XUIDFH:DWHU *URXQGZDWHU ($57+48$.(+$=$5'6 6XUIDFH)DXOW5XSWXUH /LTXHIDFWLRQ6HLVPLF6HWWOHPHQW 2WKHU6HLVPLF+D]DUGV &21&/86,216$1'5(&200(1'$7,216 *HQHUDO ($57+:25.&216,'(5$7,216 *HQHUDO 3URSHUW\&OHDULQJDQG3UHSDUDWLRQ 5HPHGLDO*UDGLQJ (QJLQHHUHG)LOO ([FDYDWLRQ&KDUDFWHULVWLFV
6KULQNDJHDQG%XONLQJ
7UHQFK([FDYDWLRQVDQG%DFNILOO
'(6,*15(&200(1'$7,216 6WRUPZDWHU,QILOWUDWLRQ )RXQGDWLRQ'HVLJQ&ULWHULD 8QGHUVODE0RLVWXUH0HPEUDQH 0LVFHOODQHRXV)RXQGDWLRQ5HFRPPHQGDWLRQV )RXQGDWLRQ6HW%DFNV 6HLVPLF'HVLJQ3DUDPHWHUV 6RLO6XOIDWH&RQWHQW 3UHOLPLQDU\3DYHPHQW'HVLJQ 5(7$,1,1*:$//'(6,*1$1'&216758&7,21 *HQHUDO'HVLJQ&ULWHULD 5HVWUDLQHG5HWDLQLQJ:DOOV :DOO%DFNILOODQG'UDLQDJH 3267&216758&7,21&216,'(5$7,216 /DQGVFDSH0DLQWHQDQFHDQG3ODQWLQJ 'UDLQDJH 3/$15(9,(:$1'&216758&7,212%6(59$7,216
7+(/$6326$62:1(5/39//&$'(/$:$5(/,0,7('/,$%,/,7<&203$1< 3URMHFW1R 6'
5HYLVHG3UHOLPLQDU\*HRWHFKQLFDO(YDOXDWLRQ 1RYHPEHU 3DFLILF*3$5H]RQH6DQ0DUFRV&DOLIRUQLD 3DJHLL
7$%/(2)&217(176
/,0,7$7,216
6(/(&7('5()(5(1&(6
(1&/2685(6
)LJXUH²6LWH/RFDWLRQ0DS
)LJXUH²%RULQJ/RFDWLRQ0DS
$SSHQGL[$²([SORUDWRU\%RULQJ/RJVDQG,QILOWUDWLRQ:RUNVKHHWV $SSHQGL[%²5HVXOWVRI/DERUDWRU\7HVWLQJ
$SSHQGL[&²*HQHUDO(DUWKZRUN*UDGLQJ*XLGHOLQHV
7+(/$6326$62:1(5/39//&$'(/$:$5(/,0,7('/,$%,/,7<&203$1< 3URMHFW1R 6'
5HYLVHG3UHOLPLQDU\*HRWHFKQLFDO(YDOXDWLRQ 1RYHPEHU 3DFLILF*3$5H]RQH6DQ0DUFRV&DOLIRUQLD 3DJH
385326( $1'6&23(2)6(59,&(6
7KHSXUSRVHRIWKLVVWXG\ZDVWR HYDOXDWHWKHJHRWHFKQLFDOFRQG LWLRQVRQWKHVLWH6HUYLFHV SURYLGHGIRUWKLVVWXG\LQFOXGHGWKHIROORZLQJ
5HVHDUFKDQGUHYLHZRIDYDLODEOHJHRORJLFDQGJHRWHFKQLFDOGDWDDQGJHQHUDOLQIRUPDWLRQ SHUWLQHQWWRWKHSURSHUW\
([FDYDWLRQRIIRXU
KROORZVWHPDXJHUERULQJVRQVLWHDQGFRO OHFWLRQRIEXONDQG UHODWLYHO\XQGLVWXUEHGVRLOVDPSOHVIRUVXEVHTXHQWODERUDWRU\WHVWLQJ 7ZRSHUFRODWLRQWHVWERULQJVDQGLQILOWUDWLRQDQDO\VHV /DERUDWRU\WHVWLQJRIWKHVRLOVDPSOHVFROOHFWHGGXULQJWKHILHOGLQYHVWLJDWLRQ 5HYLHZDQGHYDOXDWLRQRIVHLVPLFLW\DQG
&RPSLODWLRQ RI WKLV JHRWHFKQLFDO UHSRUW ZKLFK SUHVHQWV RXU ILQGLQJV RI SHUWLQHQW JHRWHFKQLFDO FRQGLWLRQV DQG JHRWHFKQLFDO UHFRPPHQGDWLRQV IRU IXWXUH SURSHUW\ GHYHORSPHQW
3523(57<'(6&5,37,21 $1'352326(''(9(/230(17
3URSHUW\'HVFULSWLRQ
7KHVXEMHFWSURSHUW\LVORFDWHGDWWKHQRUWKHUQFRUQHURI/LQGD9LVWD'ULYHDQG/RV3RVDV5RDG LQWKH&LW\RI6DQ0DUFRV6DQ'LHJR&RXQW\&DOLIRUQLD VHH)LJXUH
7KHSURSHUW\LVERXQGHG
WRWKHVRXWKZHVWE\/LQGD9LVWD'ULYHWRWKHVRXWKHDVWE\/RV3RVDV5RDGWRWKHQRUWKHDVWE\ /D0LUDGD'ULYHDQGWRWKHQRUWKZHVWE\3DFLILF6WUHHW6XUIDFHFRQGLWLRQVJHQHUDOO\FRQVLVWRI UROOLQJXQLPSURYHGHDUWKHQWHUUDLQZLWKQDWLYHJUDVVHVDQGYHJHWDWLRQ7KH6LWHLVUHODWLYHO\IODW UDQJLQJLQHOHYDWLRQIURPDSSUR[LPDWHO\IHHWDERYHPHDQVHD OHYHO DPVO
LQWKHVRXWKHDVW
SRWLRQRIWKHSURMHFWDUHDWRIHHWLQWKHQRUWKZHVWFRUQHURIWKHSURMHFW6LWH
7+(/$6326$62:1(5/39//&$'(/$:$5(/,0,7('/,$%,/,7<&203$1< 3URMHFW1R 6'
5HYLVHG3UHOLPLQDU\*HRWHFKQLFDO(YDOXDWLRQ 1RYHPEHU 3DFLILF*3$5H]RQH6DQ0DUFRV&DOLIRUQLD 3DJH
)XWXUH'HYHORSPHQW3URMHFW'HVFULSWLRQ
7KHDFUHSURMHFWVLWHLVDQLQILOOVLWHORFDWHGLQWKHZHVWHUQSRUWLRQRIWKH&LW\RI6DQ0DUFRV
&LW\
DWWKHQRUWKZHVWFRUQHU RI6/DV3RVDV5RDGDQG/LQGD 9LVWD'ULYHFRPSULVHGRI $VVHVVRU·V3DUFHO1XPEHUV
D QG
/D0LUDGD
'ULYHDEXWVWKHVLWH·VQRUWKHUQERXQGDU\ZKLOH6RXWK3DFLILF6WUHHWDEXWVWKHSURSHUW\·VZHVWHUQ ERXQGDU\7KH*UDQG3OD]DVKRSSLQJFHQWHULVORFDWHGGLUHFWO\DFURVV/DV3RVDV5RDGWRWKHHDVW /LJKWLQGXVWULDOXVHVDUHDGMDFHQWWRWKHVLWH·VQRUWKHUQVRXW KHUQDQGZHVWHUQERXQGDU\DQG %UDGOH\3DUNLVORFDWHGDFURVVIURPWKHVLWH·VVRXWKZHVWHUQFRU QHU6LQJOHDQGPXOWLIDPLO\ UHVLGHQWLDOXVHVDUHORFDWHGWRWKHZHVWDQGVRXWKRI%UDGOH\3DUN
7KHSURMHFWFRQVLVWVRI
UHVLGHQWLDOXQLWVLQFOXGLQJDPL[ RIDSDUWPHQWVURZKRPHVYLOODV DQGDIIRUGDEOHIODWVRQDSSUR[LPDWHO\
DFUHVRIWKHD FUHSURMHFWVLWH3URSRVHG
UHVLGHQWLDOXQLWVZRXOGLQFOXGHDPL[RIDSDUWPHQWVZLWKLQDIL YHVWRU\SRGLXPEXLOGLQJWKUHH VWRU\URZKRPHVWKUHHVWRU\YLOODVDQGDIIRUGDEOHIODWVZLWKLQ DIRXUVWRU\EXLOGLQJ7KH SURMHFWLQFOXGHVDWRWDORI
SDUNLQJVSDFHVDQG
VTXD UHIHHWRIFRPPRQRSHQVSDFH
DUHDRIWKH
WRWDOXQLWV
RIWKHWRWDO
ZRXOGEHGHV LJQDWHGDVGHHGUHVWULFWHG
DIIRUGDEOHXQLWV
DOWHUQDWLYHO\WKHSURMHFWUHVHUYHVWKHRSWLR QWRFRQWULEXWHWRWKHDIIRUGDEOH KRXVLQJIXQGE\SD\LQJWKHLQOLHXIHH
7KHSURSRVHGSURMHFWD OVRLQFOXGHVODQGVFDSLQJELR UHWHQWLRQDUHDVDQGFLUFXODWLRQLPSURYHPHQWV7KHUHPDLQLQJDS SUR[LPDWHO\ DFUHVRI
WKHDFUHSURMHFWVLWHZRXOGEHSUHVHUYHGDQGUHVWRUHGDVR SHQVSDFHDQGKDELWDWDUHD 7KHSURSRVHGSURMHFWZRXOGKDYHDGHQVLW\RIDSSUR[LPDWHO\ GZHOOLQJXQLWVSHUDFUH LQFOXGLQJWKHRSHQVSDFHDQGKDELWDWDUHD
7KHSURMHFWSURSRVHVD*HQHUDO3ODQ$PHQGPHQW5H]RQH6SHFLILF 3ODQ7HQWDWLYH0DSDQG 0XOWL)DPLO\6LWH'HYHORSPHQW3ODQ7KH*HQHUDO3ODQ$PHQGPHQW DQG5H]RQHZRXOGFKDQJH WKH*HQHUDO3ODQGHVLJQDWLRQDQG=RQLQJIURP,QGXVWULDO ,
WR 6SHFLILF3ODQ$UHD
63$
7KH
6SHFLILF3ODQKDVEHHQSUHSDUHGZLWKWKHLQWHQWWRSURYLGHDFR PSUHKHQVLYHSODQWRHQVXUH WKHHIILFLHQWGHYHORSPHQWRIDQHZUHVLGHQWLDOFRPPXQLW\7KH6 SHFLILF3ODQVHUYHVDVERWKD SROLF\GRFXPHQWDQGDUHJXODWRU\GRFXPHQWIRUWKHV\VWHPDWLFLP SOHPHQWDWLRQRIWKHSROLFLHV DQGJRDOVRIWKH*HQHUDO3ODQ7KH7HQWDWLYH0DSSUHVHQWVVSHFL ILFORWFRQILJXUDWLRQVIRUWKH VLWH7KH0XOWL)DPLO\6LWH'HYHORSPHQW3ODQZLOOFRQILJXUHWKH VLWHIRUPXOWLIDPLO\GZHOOLQJ XQLWVVWUHHWFRQILJXUDWLRQLQIUDVWUXFWXUHUHFUHDWLRQDORSHQ VSDFHDQGSULYDWHRSHQVSDFH
$VSDUWRIWKHSURMHFWDGGLWLRQDOSHGHVWULDQFRQQHFWLYLW\ZRXO GEHSURYLGHGDORQJWKUHHRI WKHDGMDFHQWVWUHHWIURQWDJHV7KHSURMHFWZRXOGSURYLGHDIR RWVLGHZDONDQG&ODVV,, EXIIHUHGELNHODQHDORQJWKHSURMHFW·VIURQWDJHRQ3DFLILF6WUH HW WKHSURMHFWZRXOGSURYLGHD
IRRWXUEDQWUDLO
VKDUHGXVHSDWK
DORQJWKHSURMHFW·VIURQW DJHRQ/LQGD9LVWD'ULYH
DQG
WKHSURMHFWZRXOGDOVRSURYLGHDIRRWXUEDQWUDLO
VKDUHGXV HSDWK
DORQJWKHSURMHFW·V
IURQWDJHRQ/D0LUDGD'ULYH,QDGGLWLRQWRWKHSURSRVHGVLGHZD ONDQGWUDLOFRQQHFWLRQVWKH 7+(/$6326$62:1(5/39//&$'(/$:$5(/,0,7('/,$%,/,7<&203$1< 3URMHFW1R 6'
5HYLVHG3UHOLPLQDU\*HRWHFKQLFDO(YDOXDWLRQ 1RYHPEHU 3DFLILF*3$5H]RQH6DQ0DUFRV&DOLIRUQLD 3DJH
SURMHFWZRXOGDGGDEXVVWRSDQGVKHOWHUZLWKDEXVWXUQRXWDOR QJ6RXWK/DV3RVDV5RDG DGMDFHQWWRWKHGHYHORSPHQWDUHDDQGZRXOGLQVWDOODZD\WUDI ILFVLJQDODWWKHLQWHUVHFWLRQ RI/LQGD9LVWD'ULYHDQG3DFLILF6WUHHW)XUWKHUPRUHWKHSURMH FWZRXOGXSVL]HDSSUR[LPDWHO\ IHHW RI H[LVWLQJ ZDWHU SLSH IURP LQFKHV WR LQFKHV DQG ZRXOG FRQYHUW DSSUR[LPDWHO\IHHWRIH[LVWLQJRYHUKHDGSRZHUOLQHVWRXQ GHUJURXQGDORQJ/D0LUDGD
6WUXFWXUDOORDGLQJLQIRUPDWLRQZDVQRWDYDLODEOHDWWKHWLPHRI WKLVUHSRUWVXEPLWWDOEXWVKRXOG EHSURYLGHGWR*HR7HNRQFHGHWHUPLQHG)RUWKLVUHSRUWZHKDYHDVVXPHGDPD[LPXPFROXPQ ORDGRINLSVIRUWKHSODQQHGVWUXFWXUHV
$VSODQQLQJSURJUHVVHVDQGDGGLWLRQDORUUHYLVHGSODQVEHFRPHDYDLODEOHWKH\VKRXOGEHSURYLGHG WR*HR7HNIRUUHYLHZDQGFRPPHQW ,ISODQVYDU\VLJQLILFDQWO\ DGGLWLRQDOJHRWHFKQLFDOILHOG H[SORUDWLRQODERUDWRU\WHVWLQJDQGHQJLQHHULQJDQDO\VHVPD\EH QHFHVVDU\WRSURYLGHVSHFLILF HDUWKZRUNUHFRPPHQGDWLRQVDQGJHRWHFKQLFDOGHVLJQSDUDPHWHUVIRUDFWXDOGHYHORSPHQWSODQV ),(/'(;3/25$ 7,21 $1'/$%25$ 725 < 7(67,1*
)LHOG([SORUDWLRQ
2XUILHOGVWXG\FRQGXFWHGRQ6HSWHPEHU
FRQVLVWHGRID UHFRQQDLVVDQFHH[FDYDWLRQRI
JHRWHFKQLFDOKROORZVWHPDXJHUERULQJV%WKURXJK%WRGHSWK VRIDERXW ôIHHWEHORZ
JUDGHDQGSHUFRODWLRQWHVWERULQJV3DQG3WRGHSWKVRID ERXWIHHWEHORZJUDGH7KH ERULQJVZHUHGULOOHGZLWKDWUXFNPRXQWHGUXEEHUWLUH&0(GULOOLQJULJDQGLQFOXGHGFROOHFWLRQ RIEXONDQGUHODWLYHO\XQGLVWXUEHGGULYHQVRLOVDPSOHVIRUVXEVHTXHQWODERUDWRU\WHVWLQJ3URSRVHG ERULQJV%DQG%ZHUHQRWSHUIRUPHGGXHWRELRORJLFDOFRQVWU DLQWVDQGRPLWWHGIURPWKLV UHSRUW6HYHUDOYDULDWLRQVRIS URSRVHGERULQJORFDWLRQVZHUHS UHVHQWHGWR&DOLIRUQLD)LVKDQG :LOGOLIH
&):
KRZHYHU&):RQO\DXWKRUL]HGWKHORFDWLRQVSUHV HQWHGRQ)LJXUH$ UHSUHVHQWDWLYHIURPRXUILUPYLVXDOO\ORJJHGWKHERULQJVDQGFROOHFWHGVRLOVDPSOHVIRUODERUDWRU\ DQDO\VLV$SSUR[LPDWHORFDWLRQVRIH[SORUDWLRQORFDWLRQVDUHS UHVHQWHGRQWKH%RULQJ/RFDWLRQ 0DS)LJXUH$GHVFULSWLRQRIPDWHULDOHQFRXQWHUHGLQWKHERULQJVLVLQFOXGHGLQ$SSHQGL[$
3HUFRODWLRQDQG,QILOWUDWLRQ7HVWLQJ
%RULQJV3DQG3ZHUHDGYDQFHGWRDSSUR[LPDWHGHSWKVRIIHHWEHORZH[LVWLQJJUDGHZLWKDQ LQFKGLDPHWHUDQGFRQYHUWHGWRDGU\ZHOOIRUSHUFRODWLRQWHVWLQJDSSUR[LPDWHO\IHHWDZD\ IURPERULQJORFDWLRQ%)ROORZLQJFRPSOHWLRQRIWKHERULQJH [FDYDWLRQVSHUFRODWLRQWHVWLQJ ZDVSHUIRUPHGE\DUHSUHVHQWDWLYHIURPRXUILUPLQJHQHUDOFRQI RUPDQFHZLWKWKHFLW\RI6DQ 7+(/$6326$62:1(5/39//&$'(/$:$5(/,0,7('/,$%,/,7<&203$1< 3URMHFW1R 6'
5HYLVHG3UHOLPLQDU\*HRWHFKQLFDO(YDOXDWLRQ 1RYHPEHU 3DFLILF*3$5H]RQH6DQ0DUFRV&DOLIRUQLD 3DJH
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
)RUGHVLJQRIVKDOORZLQILOWUDWLRQEDVLQVFRQYHUWLQJSHUFRODWLRQUDWHVWRLQILOWUDWLRQUDWHVYLDWKH 3RUFKHWPHWKRGLVJHQHUDOO\DFFHSWDEOHDQGDSSURSULDWHDVWKLVPHWKRGIDFWRUVRXWWKHVLGHZDOO FRPSRQHQWRIWKHSHUFRODWLRQUHVXOWVDQGUHSUHVHQWVWKHERWWRP FRQGLWLRQVRIDVKDOORZEDVLQ
LQILOWUDWLRQ
7KHUHIRUHWKHSHUFRODWLRQGDWDIRUERULQJV3 DQG3ZHUHFRQYHUWHGYLDWKH 3RUFKHWPHWKRG7KLVPHWKRGLVFRQVLVWHQWZLWKWKHJXLGHOLQHV UHIHUHQFHGLQWKH&LW\RI6DQ 0DUFRV%03'HVLJQ0DQXDO5HVXOWVRIRXULQILOWUDWLRQDQDO\VLV ZLWKRXWDIDFWRURIVDIHW\DUH SUHVHQWHGLQWKHIROORZWDEOHIRUHDFKRIWKHWHVWDUHDV
/RFDWLRQ 'HSWK
LQFKHV
,QILOWUDWLRQ5DWH
LQFKHVSHUKRXU
3
3
5DWHZDVFRQYHUWHGWRDQLQILOWUDWLRQUDWHYLDWKH3RUFKHW PHWKRG
&RSLHVRILQILOWUDWLRQFRQYHUVLRQVKHHWVDUHLQFOXGHGLQ$SSHQGL[$
7KHPDWHULDOH[SRVHGDORQJWKHERULQJVLGHZDOOVDQGDWWKHERWW RPRI3DQG3ZHUHQDWLYH VRLOV7KHWHVWVSHUIRUPHGDQGUHSRUWHGDUHLQGLFDWLYHRIQDWLYHVRLOV$WWKHWLPHRILQYHVWLJDWLRQ JURXQGZDWHUZDVQRWHQFRXQWHUHGLQWKHYLFLQLW\
2YHUWKHOLIHWLPHRIWKHVWRUPZDWHUGLVSRVDODUHDVWKHSHUFRODWLRQUDWHVPD\EHDIIHFWHGE\VLOW EXLOGXSDQGELRORJLFDODFWLYLWLHVDVZHOODVORFDOYDULDWLRQV LQVRLOFRQGLWLRQV$QDSSURSULDWH IDFWRURIVDIHW\XVHGWRFRPSXWHWKHGHVLJQSHUFRODWLRQUDWHVK RXOGEHFRQVLGHUHGDWWKH GLVFUHWLRQRIWKHGHVLJQHQJLQHHUDQGDFFHSWDQFHRIWKHSODQUHYLHZHU
/DERUDWRU\7HVWLQJ
/DERUDWRU\WHVWLQJZDVSHUIRUPHGRQEXONDQGUHODWLYHO\XQGLVWXUEHGVRLOVDPSOHVFROOHFWHGGXULQJ WKHILHOGH[SORUDWLRQV7KHSXUSRVHRIWKHODERUDWRU\WHVWLQJ ZDVWRHYDOXDWHWKHLUSK\VLFDODQG FKHPLFDOSURSHUWLHVIRUXVHLQHQJLQHHULQJGHVLJQDQGDQDO\VLV5HVXOWVRIWKHODERUDWRU\WHVWLQJ 7+(/$6326$62:1(5/39//&$'(/$:$5(/,0,7('/,$%,/,7<&203$1< 3URMHFW1R 6'
5HYLVHG3UHOLPLQDU\*HRWHFKQLFDO(YDOXDWLRQ 1RYHPEHU 3DFLILF*3$5H]RQH6DQ0DUFRV&DOLIRUQLD 3DJH
SURJUDPDORQJZLWKDEULHIGHVF ULSWLRQDQGUHOHYDQWLQIRUPDWLRQUHJDUGLQJWHVWLQJSURFHGXUHV DUHLQFOXGHGLQ$SSHQGL[%
*(2/2*,& $1'62,/6&21',7,216
5HJLRQDO6HWWLQJ
7KHVXEMHFWSURSHUW\LVORFDWHGLQWKH3HQLQVXODU5DQJHVJHRPRUSKLFSURYLQFH7KH3HQLQVXODU 5DQJHVSURYLQFHLVRQHRIWKHODUJHVWJHRPRUSKLFXQLWVLQZHVWHUQ1RUWK$PHULFD%DVLFDOO\LW H[WHQGVURXJKO\
PLOHVIURPWKHQRUWKDQGQRUWKHDVWHUO\DGMD FHQWWKH7UDQVYHUVH5DQJHV JHRPRUSKLFSURYLQFHWRWKHWLSRI%DMD&DOLIRUQLD7KLVSURYLQ FHYDULHVLQZLGWKIURPDERXW WRPLOHV,WLVERXQGHGRQWKHZHVWE\WKH3DFLILF2FHDQ RQWKHVRXWKE\WKH*XOIRI &DOLIRUQLDDQGRQWKHHDVWE\WKH&RORUDGR'HVHUW3URYLQFH
7KH3HQLQVXODU5DQJHVDUHHVVHQWLDOO\DVHULHVRIQRUWKZHVWVRX WKHDVWRULHQWHGIDXOWEORFNV 6HYHUDOPDMRUIDXOW]RQHVDUHIRXQGLQWKLVSURYLQFH7KH(OVLQRUH)DXOW]RQHDQGWKH6DQ-DFLQWR )DXOW]RQHVWUHQGQRUWKZHVWVRXWKHDVWDQGDUHIRXQGLQWKHQHDUWKHPLGGOHRIWKHSURYLQFH7KH 6DQ$QGUHDV)DXOW]RQHERUGHUVWKHQRUWKHDVWHUO\PDUJLQRIWKH SURYLQFH7KH1HZSRUW ,QJOHZRRG5RVH&DQ\RQ)DXOW]RQHPHDQGHUVWKHVRXWKZHVWPDUJLQRIWKHSURYLQFHEXWFDQEH PRUHDSSURSULDWHO\GHILQHGE\WKH3DFLILF2FHDQ1RIDXOWVDUHVKRZQLQWKHLPPHGLDWHYLFLQLW\ RQWKHPDSUHYLHZHGIRUWKHDUHD
($57+0$7(5,$/6
$EULHIGHVFULSWLRQRIWKHHDUWK PDWHULDOVHQFRXQWHUHGGXULQJR XUVXEVXUIDFHH[SORUDWLRQLV SUHVHQWHGLQWKHIROORZLQJVHFWLRQV%DVHGRQRXUILHOGREVHUY DWLRQVDQGUHYLHZRISXEOLVKHG JHRORJLFPDSVWKHVXEMHFWSURSHUW\LVORFDOO\XQGHUODLQE\UHFHQWDOOXYLXPDQG6DQWLDJR)RUPDWLRQ EHGURFN
8QGRFXPHQWHG)LOO
1RW0DSSHG
8QGRFXPHQWHGILOOVRLOVZHUHREVHUYHGDVVSRUDGLFHQGGXPSSLOH VIURPLOOHJDOGXPSLQJ7KHVH VRLOVDUHQRWFRQVLGHUHGVXLWDEOHIRUVXSSRUWRIVWUXFWXUDOLPSURYHPHQWVEXWPD\EHUHXVHGDV HQJLQHHUHGILOOLISURSHUO\SURFHVVHGDQGSODFHG
$OOXYLXP
0DS6\PERO4DO
7KHPRVWUHFHQWUHJLRQDOJHRORJLFPDSUHYLHZHGVKRZHGWKHJHROR J\ .HQQHG\
IRUWKH
HDVWHUQSRUWLRQRIWKHDUHDDORQJ/RV3RVDV5RDGWREHDOOXYLDOGHSRVLWVKRZHYHUEDVHGRQRXU 7+(/$6326$62:1(5/39//&$'(/$:$5(/,0,7('/,$%,/,7<&203$1< 3URMHFW1R 6'
5HYLVHG3UHOLPLQDU\*HRWHFKQLFDO(YDOXDWLRQ 1RYHPEHU 3DFLILF*3$5H]RQH6DQ0DUFRV&DOLIRUQLD 3DJH
HYDOXDWLRQDOOXYLXPDSSHDUVWREHOLPLWHGWRDVPDOOHUH[WHQWDORQJDQDWXUDOGUDLQDJHVZDOHDORQJ /RV3RVDV5RDG$VHQFRXQWHUHGLQERULQJ%WKHDOOXYLXPJHQHUDOO\FRQVLVWHGRIVLOW\ILQHVDQGV 7HUWLDU\6DQWLDJR)RUPDWLRQ
0DS6\PERO7VD
7KHPRVWUHFHQWO\GDWHGUHJLRQDOJHRORJLFPDSVKRZLQJWKHRYHUD OOJHRORJ\ .HQQHG\
LQGLFDWHV6DQWLDJR)RUPDWLRQVHGLPHQWDU\EHGURFNDWWKHVXUIDFHRQWKHZHVWHUQPDMRULW\RIWKH SURSHUW\
KRZHYHUEDVHGRQRXUHYDOXDWLRQWKH6DQWLDJR)RUPDWL RQDSSHDUVWREHQHDUWKH VXUIDFHDFURVVPRVWRIWKHSURSHUW\$VHQFRXQWHUHGLQWKHERU LQJV6DQWLDJR)RUPDWLRQZDV REVHUYHGDVDGDUNEURZQWREODFNFOD\RYHUVDQGVWRQH 685)$&(:$7(5$1'*5281':$7(5
6XUIDFH:DWHU
6XUIDFHZDWHUZDVQRWREVHUYHGGXULQJRXUYLVLW,IHQFRXQWHUHGGXULQJHDUWKZRUNFRQVWUXFWLRQ VXUIDFHZDWHULVOLNHO\WKHUHVXOWRISUHFLSLWDWLRQ2YHUDOODUHDGUDLQDJHLVLQDVRXWKHDVWGLUHFWLRQ 3URYLVLRQVIRUVXUIDFHGUDLQDJHZLOOQHHGWREHDFFRXQWHGIRUE\WKHIXWXUHSURMHFWFLYLOHQJLQHHU
*URXQGZDWHU
$VWDWLFJURXQGZDWHUWDEOHZDVQRWHQFRXQWHUHGGXULQJGULOOLQJRSHUDWLRQV([FDYDWLRQV%DQG %DSSHDUVWRKDYHHQFRXQWHUHGS HUFKHGZDWHUDWDGHSWKRIDSS UR[LPDWHO\ DQGIHHW
UHVSHFWLYHO\
DQGFXWWLQJVLQ%DWDGHSWKRIIHHWVXJJHV WDSHUFKJURXQGZDWHU%DVHGRQ WKHDQWLFLSDWHGGHSWKRIUHPRYDO VJURXQGZDWHULVQRWDQWLFLSDW HGWREHDIDFWRULQIXWXUH GHYHORSPHQW/RFDOL]HGSHUFKHGJURXQGZDWHUPD\EHSUHVHQWEXWLVDOVRQRWDQWLFLSDWHGWREH DIDFWRULQIXWXUHGHYHORSPHQWZLWKWKHH[FHSWLRQWKDWVHDVRQDOZDWHUOHYHOVDUHOLNHO\WRLPSDFW VWRUPZDWHUPDQDJHPHQW
($57+48$.(+$=$5'6
6XUIDFH)DXOW5XSWXUH
7KHJHRORJLFVWUXFWXUHRIWKHHQWLUHVRXWKHUQ&DOLIRUQLDDUHDLVGRPLQDWHGPDLQO\E\QRUWKZHVW WUHQGLQJIDXOWVDVVRFLDWHGZLWKWKH6DQ$QGUHDVV\VWHP7KHSU RSHUW\LVLQDVHLVPLFDOO\DFWLYH UHJLRQ1RDFWLYHRUSRWHQWLDOO\DFWLYHIDXOWLVNQRZQWRH[LVWDWWKLVSURSHUW\QRULVWKHSURSHUW\ VLWXDWHGZLWKLQDQ ´$OTXLVW3ULRORµ(DUWKTXDNH)DXOW=RQHRUD6SHFLDO6WXGLHV=RQH %U\DQWDQG
+DUW
1RIDXOWVWUDQVHFWLQJWKHSURSHUW\ZHUHLGHQWLILHGRQWKHUHDGLO\DYDLODEOHJHRORJLF PDSVUHYLHZHG7KHQHDUHVWNQRZQDFWLYHIDXOWLVWKH1HZSRUW, QJOHZRRG5RVH&DQ\RQIDXOW ORFDWHGDERXWPLOHVWRWKHVRXWKZHVWRIWKHSURSHUW\ 7+(/$6326$62:1(5/39//&$'(/$:$5(/,0,7('/,$%,/,7<&203$1< 3URMHFW1R 6'
5HYLVHG3UHOLPLQDU\*HRWHFKQLFDO(YDOXDWLRQ 1RYHPEHU 3DFLILF*3$5H]RQH6DQ0DUFRV&DOLIRUQLD 3DJH
/LTXHIDFWLRQ6HLVPLF6HWWOHPHQW
/LTXHIDFWLRQGHVFULEHVDSKHQRPHQRQLQZKLFKF\FOLFVWUHVVHVSURGXFHGE\HDUWKTXDNHLQGXFHG JURXQGPRWLRQFUHDWHH[FHVVSRU HSUHVVXUHVLQUHODWLYHO\FRKHV LRQOHVVVRLOV7KHVHVRLOVPD\ WKHUHE\ DFTXLUH D KLJK GHJUHH RI PRELOLW\ ZKLFK FDQ OHDG WR ODWHUDO PRYHPHQW VOLGLQJ FRQVROLGDWLRQDQGVHWWOHPHQWRIORRVHVHGLPHQWVVDQGERLOVDQG RWKHUGDPDJLQJGHIRUPDWLRQV 7KLVSKHQRPHQRQRFFXUVRQO\EHORZWKHZDWHUWDEOHEXWDIWHUO LTXHIDFWLRQKDVGHYHORSHGWKH HIIHFWVFDQSURSDJDWHXSZDUGLQWRRYHUO\LQJQRQVDWXUDWHGVRLODVH[FHVVSRUHZDWHUGLVVLSDWHV
7KHIDFWRUVNQRZQWRLQIOXHQFHOLTXHIDFWLRQSRWHQWLDOLQFOXGHV RLOW\SHDQGJUDLQVL]HUHODWLYH GHQVLW\JURXQGZDWHUOHYHOFRQILQLQJSUHVVXUHVDQGERWKLQWHQ VLW\DQGGXUDWLRQRIJURXQG VKDNLQJ,QJHQHUDOPDWHULDOVWKDWDUHVXVFHSWLEOHWROLTXHID FWLRQDUHORRVHVDWXUDWHGJUDQXODU VRLOVKDYLQJORZILQHVFRQWHQWXQGHUORZFRQILQLQJSUHVVXUHV
7KHOLTXHIDFWLRQSRWHQWLDODQGVHLVPLFVHWWOHPHQWSRWHQWLDOLV FRQVLGHUHGQHJOLJLEOHSURYLGHG UHPHGLDOJUDGLQJUHFRPPHQGDWLRQVSUHVHQWHGKHUHLQDUHFRPSOHWHGDQGGXHWRWKHJHQHUDOGHQVH WRYHU\GHQVHQDWXUHRIXQGHUO\LQJVKDOORZEHGURFNDVZHOODVSODQQHGILOOSODFHPHQW 2WKHU6HLVPLF+D]DUGV
'XHWRWKHUHODWLYHO\IODWQDWXUHRIWKHSURSHUW\WKHSRWHQWLD OIRUODQGVOLGHVDQGURFNIDOOLV FRQVLGHUHGQHJOLJLEOH7KHSRWHQWLDOIRUVHFRQGDU\VHLVPLFKD]DUGVVXFKDVVHLFKHDQGWVXQDPLLV UHPRWHGXHWRSURSHUW\HOHYDWLRQDQGGLVWDQFHIURPDQRSHQERG\RIZDWHU &21&/86,216 $1'5(&200(1'$ 7,216
*HQHUDO
)XWXUHGHYHORSPHQWRIWKHSURSHUW\DSSHDUVIHDVLEOHIURPDJHRWHFKQLFDOYLHZSRLQWSURYLGHGWKDW WKHIROORZLQJUHFRPPHQGDWLRQVDUHLQFRUSRUDWHGLQWKHGHVLJQDQ GFRQVWUXFWLRQSKDVHVRIWKH GHYHORSPHQW7KHIROORZLQJVHFWLRQVSUHVHQWJHQHUDOUHFRPPHQGDWLRQVIRUFXUUHQWO\DQWLFLSDWHG IXWXUHGHYHORSPHQW'XHWRWKHSUHOLPLQDU\QDWXUHRIWKLVUHSR UWVXSSOHPHQWDOJHRWHFKQLFDO HYDOXDWLRQVRIWKHSURSHUW\DUHDQWLFLSDWHGDWIXWXUHGDWHVRQFHPRUHGHWDLOHGGHYHORSPHQWSODQV DUHDYDLODEOH7KRVHVXSSOHPHQWDOJHRWHFKQLFDOUHFRPPHQGDWLRQVZLOOVXSHUVHGHWKHSUHOLPLQDU\ UHFRPPHQGDWLRQVSURYLGHGLQWKLVUHSRUW
7+(/$6326$62:1(5/39//&$'(/$:$5(/,0,7('/,$%,/,7<&203$1< 3URMHFW1R 6'
5HYLVHG3UHOLPLQDU\*HRWHFKQLFDO(YDOXDWLRQ 1RYHPEHU 3DFLILF*3$5H]RQH6DQ0DUFRV&DOLIRUQLD 3DJH
($57+:25.&216,'(5$7,216
*HQHUDO
(DUWKZRUNDQGJUDGLQJVKRXOGEHSHUIRUPHGLQDFFRUGDQFHZLWKWKHDSSOLFDEOHJUDGLQJRUGLQDQFHV RI WKH FLW\ RI 6DQ 0DUFRV WKH
RU FXUUHQW
&DOLIRUQLD %XLOGLQJ &RGH
&%&
DQG
UHFRPPHQGDWLRQVFRQWDLQHGLQWKLVUHSRUW7KH*UDGLQJ*XLGHOLQ HVLQFOXGHGLQ$SSHQGL[& RXWOLQHJHQHUDOSURFHGXUHVDQGGRQRWDQWLFLSDWHDOOVSHFLILFV LWXDWLRQV,QWKHHYHQWRIFRQIOLFW WKHUHFRPPHQGDWLRQVSUHVHQWHGLQWKHWH[WRIWKLVUHSRUWVKRXOG VXSHUVHGHWKRVHFRQWDLQHGLQ $SSHQGL[&
3URSHUW\&OHDULQJDQG3UHSDUDWLRQ
3URSHUW\SUHSDUDWLRQVKRXOGVWDUWZLWKUHPRYDORIGHOHWHULRXVP DWHULDOVDQGYHJHWDWLRQ7KHVH PDWHULDOVVKRXOGEHGLVSRVHGRISURSHUO\RIISURSHUW\$Q\H[LVWLQJXQGHUJURXQGLPSURYHPHQWV XWLOLWLHVDQGWUHQFKEDFNILOOVKRXOGDOVREHUHPRYHGRUEHIXUW KHUHYDOXDWHGDVSDUWRIIXWXUH GHYHORSPHQWRSHUDWLRQV
5HPHGLDO*UDGLQJ
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
,QSDYHPHQWDUHDVUHPRYDOVVKRXOGH[WHQGDWOHDVWIHHWEHORZH[LVWLQJJUDGHRURQHIRRWEHORZ ILQLVKHGVXEJUDGHZKLFKHYHULVORZHVW
7KHERWWRPRIDOOUHPRYDOVVKRXOGEHVFDULILHGWRDPLQLPXPGHSWKRIVL[
LQFKHVEURXJKWWR
VOLJKWO\DERYHRSWLPXPPRLVWXUH FRQWHQWDQGWKHQFRPSDFWHGWR DWOHDVW RIWKHVRLO·V
PD[LPXPGU\GHQVLW\SHU$670'SULRUWRILOOSODFHPHQW7KHUHPHGLDOH[FDYDWLRQERWWRPV VKRXOGEHREVHUYHGE\D*HR7HNUHSUHVHQWDWLYHSULRUWRVFDULILFDWLRQ7KHUHVXOWDQWYRLGVIURP UHPHGLDOJUDGLQJRYHUH[FDYDWLRQVKRXOGEHILOOHGZLWKPDWHULDOVSODFHGLQJHQHUDODFFRUGDQFHZLWK 6HFWLRQ(QJLQHHUHG)LOORIWKLVUHSRUW
(QJLQHHUHG)LOO
2QVLWHPDWHULDOVDUHJHQHUDOO\FRQVLGHUHGVXLWDEOHIRUUHXVHDVHQJLQHHUHGILOOSURYLGHGWKH\DUH IUHHIURPYHJHWDWLRQURRWVGHEULVDQGURFNFRQFUHWHRUKDUGOXPSVJUHDWHUWKDQVL[
LQFKHV
7+(/$6326$62:1(5/39//&$'(/$:$5(/,0,7('/,$%,/,7<&203$1< 3URMHFW1R 6'
5HYLVHG3UHOLPLQDU\*HRWHFKQLFDO(YDOXDWLRQ 1RYHPEHU 3DFLILF*3$5H]RQH6DQ0DUFRV&DOLIRUQLD 3DJH
LQPD[LPXPGLPHQVLRQ7KHHDUWKZRUNFRQWUDFWRUVKRXOGKDYHWKH SURSRVHGH[FDYDWHG PDWHULDOVWREHXVHGDVHQJLQHHUHGILOODWWKLVSURSHUW\DSSURY HGE\WKHVRLOVHQJLQHHUSULRUWR SODFHPHQW
(QJLQHHUHGILOOPDWHULDOVVKRXOGEHPRLVWXUHFRQGLWLRQHGWRDW RUDERYHRSWLPXPPRLVWXUH FRQWHQWDQGFRPSDFWHGLQKRUL]RQWDOOLIWVQRWH[FHHGLQJLQFKLQORRVHWKLFNQHVVWRDPLQLPXP UHODWLYHFRPSDFWLRQRI
DVGHWHUPLQHGLQDFFRUGDQFHZLWKODE RUDWRU\WHVWSURFHGXUH$670 '
,IILOOLVEHLQJSODFHGRQVORSHVVWHHSHUWKDQ
K
Y
WKHILOOVKRXOGEHSURSHUO\EHQFKHGLQWRWKH
H[LVWLQJVORSHVDQGDVXIILFLHQWVL]HNH\ZD\VKDOOEHFRQVWUXFW HGLQDFFRUGDQFHZLWKJUDGLQJ JXLGHOLQHVSUHVHQWHGLQ$SSHQGL[&
([FDYDWLRQ&KDUDFWHULVWLFV
([FDYDWLRQVFDQJHQHUDOO\EHDFFRPSOLVKHGZLWKKHDY\GXW\HDUWKPRYLQJRUH[FDYDWLQJHTXLSPHQW LQJRRGRSHUDWLQJFRQGLWLRQ([FDYDWLRQVLQVHGLPHQWDU\EHGURFNPD\UHTXLUHVSHFLDOH[FDYDWLRQ HTXLSPHQWDQGRUWHFKQLTXHV
6KULQNDJHDQG%XONLQJ
6HYHUDOIDFWRUVZLOOLPSDFWHDUWKZRUNEDODQFLQJLQFOXGLQJEHGURFNEXONLQJXQGRFXPHQWHGILOODQG FROOXYLXPVKULQNDJHWUHQFKVSRLOIURPXWLOLWLHVDQGIRRWLQJH[FDYDWLRQVDVZHOODVWKHDFFXUDF\RI WRSRJUDSK\
6KULQNDJHDQGEXONLQJDUHODUJHO\GHSHQGHQWXSRQWKHGHJUHHRIFRPSDFWLYHHIIRUWDFKLHYHGGXULQJ FRQVWUXFWLRQ)RUSODQQLQJSXUSRVHVDVKULQNDJHEXONLQJIDFWRUUDQJLQJRISOXVRUPLQXVSHUFHQW PD\EHFRQVLGHUHGIRUVXUILFLDOXQGRFXPHQWHGILOOPDWHULDOVDQG DOOXYLXP$EXONLQJIDFWRURI WRSHUFHQWPD\EHFRQVLGHUHGIRUWKHXSSHUIHHWRI6DQWLDJ R)RUPDWLRQEHGURFNUHTXLULQJ UHPRYDODQGUHFRPSDFWLRQ6XEVLGHQFHVKRXOGQRWEHDIDFWRU LIUHPRYDOVDUHFRPSOHWHGDV UHFRPPHQGHG
7UHQFK([FDYDWLRQVDQG%DFNILOO
7HPSRUDU\H[FDYDWLRQVZLWKLQVKRXOGEHVWDEOHDW
LQFOLQDWLR QVIRUVKRUWGXUDWLRQVGXULQJ
FRQVWUXFWLRQDQGZKHUHFXWVGRQRWH[FHHGIHHWLQKHLJKW 7HPSRUDU\FXWVWRDPD[LPXP KHLJKWRIIHHWFDQEHH[FDYDWHGYHUWLFDOO\
7UHQFKH[FDYDWLRQVVKRXOGFRQIRUPWR&DO26+$UHJXODWLRQV7KH FRQWUDFWRUVKRXOGKDYHD FRPSHWHQWSHUVRQSHU26+$UHTXLUHPHQWVGXULQJFRQVWUXFWLRQWR REVHUYHFRQGLWLRQVDQGWR PDNHWKHDSSURSULDWHUHFRPPHQGDWLRQV
7+(/$6326$62:1(5/39//&$'(/$:$5(/,0,7('/,$%,/,7<&203$1< 3URMHFW1R 6'
5HYLVHG3UHOLPLQDU\*HRWHFKQLFDO(YDOXDWLRQ 1RYHPEHU 3DFLILF*3$5H]RQH6DQ0DUFRV&DOLIRUQLD 3DJH
8WLOLW\WUHQFKEDFNILOOVKRXOGEHFRPSDFWHGWRDWOHDVW UHODWLYHFRPSDFWLRQRIWKHPD[LPXP
GU\GHQVLW\DVGHWHUPLQHGSHU$670'8QGHUVODEWUHQFKHVVKRXOGDOVREHFRPSDFWHGWR VSHFLILFDWLRQV
2QVLWHPDWHULDOVPD\QRWEHVXLWDEOHIRUXVHDVEHGGLQJPDWHULDOEXWVKRXOGEHVXLWDEOHDVEDFNILOO SURYLGHGSDUWLFOHVODUJHUWKDQLQFKHVDUHUHPRYHG
&RPSDFWLRQVKRXOGEHDFKLHYHGZLWKDPHFKDQLFDOFRPSDFWLRQGHYL FH3RQGLQJRUMHWWLQJRI WUHQFKEDFNILOOLVQRWUHFRPPHQGHG,IEDFNILOOVRLOVKDYHGUL HGRXWWKH\VKRXOGEHWKRURXJKO\ PRLVWXUHFRQGLWLRQHGSULRUWRSODFHPHQWLQWUHQFKHV
'(6,*15(&200(1'$7,216
6WRUPZDWHU,QILOWUDWLRQ
0DQ\IDFWRUVFRQWUROLQILOWUDWLRQRIVXUIDFHZDWHUVLQWRWKHVX EVXUIDFHVXFKDVFRQVLVWHQF\RI QDWLYHVRLOVDQGEHGURFNJHRORJLFVWUXFWXUHILOOFRQVLVWHQF\ PDWHULDOGHQVLW\GLIIHUHQFHVDQG H[LVWLQJJURXQGZDWHUFRQGLWLRQV,QFRQVLGHUDWLRQRIWKHVKDOORZEHGURFNDQGDQWLFLSDWHGVKDOORZ JURXQGZDWHU LQILOWUDWLRQ RI VWRUPZDWHU LQWR WKH VXEVXUIDFH LVQRW UHFRPPHQGHG IURP D JHRWHFKQLFDOSHUVSHFWLYH6WRUPZ DWHUTXDOLW\FRQWUROEDVLQVVK RXOGEHFRQVWUXFWHGZLWKDQ LPSHUPHDEOHOLQHUDORQJWKHVLGHVDQGERWWRP
)RXQGDWLRQ'HVLJQ&ULWHULD
3UHOLPLQDU\IRXQGDWLRQGHVLJQFULWHULDLQJHQHUDOFRQIRUPDQFHZLWKWKH &%&DUHSUHVHQWHG
KHUHLQ7KHVHDUHW\SLFDOGHVLJQFULWHULDDQGDUHQRWLQWHQGHG WRVXSHUVHGHWKHGHVLJQE\WKH VWUXFWXUDOHQJLQHHU7KHSUHOLP LQDU\UHFRPPHQGDWLRQVSUHVHQWHG EHORZDUHEDVHGRQDQ DVVXPHGPD[LPXPFROXPQORDGRINLSVIRUWKHSODQQHGEXLOGLQ JV2QFHDFWXDOVWUXFWXUDO ORDGVDQGJUDGLQJFRQFHSWVDUHNQRZQVXSSOHPHQWDOUHFRPPHQGDWLRQVPD\EHZDUUDQWHGZKLFK PD\UHTXLUHDGGLWLRQDOWHVWERULQJVDQGODERUDWRU\WHVWLQJ
%DVHGRQRXUYLVXDOFODVVLILFDWLRQRIPDWHULDOVHQFRXQWHUHGDQGDVYHULILHGE\ODERUDWRU\WHVWLQJ VRLOVQHDUVXEJUDGHDUHDQWLFLSDWHWRH[KLELWD´PHGLXPµ (,
SRWHQWLDOIRUH[SDQVLRQ
SHU$670'
0DWHULDOVZLWK´ORZµ
(,
H[SDQVLYHQHVVPD\DOVREHHQFRXQWHUHG
DWGHSWKDQGFRXOGEHSODFHGDVHQJLQHHUHGILOOVRLOVGHSHQGLQJ RQJUDGLQJORJLVWLFV$GGLWLRQDO ODERUDWRU\WHVWLQJVKRXOGEHSHUIRUPHGDWWKHWLPHRIVXSSOHPHQWDOJHRWHFKQLFDOHYDOXDWLRQVDQG XSRQFRPSOHWLRQRIJUDGLQJDFWLYLWLHVWRYHULI\WKHH[SDQVLRQSRWHQWLDODQGSODVWLFLW\LQGH[RIWKH VXEJUDGHVRLOV
7+(/$6326$62:1(5/39//&$'(/$:$5(/,0,7('/,$%,/,7<&203$1< 3URMHFW1R 6'
5HYLVHG3UHOLPLQDU\*HRWHFKQLFDO(YDOXDWLRQ 1RYHPEHU 3DFLILF*3$5H]RQH6DQ0DUFRV&DOLIRUQLD 3DJH
7KHIROORZLQJFULWHULDIRUGHVLJQRIIRXQGDWLRQVDUHSUHOLPLQDU\$GGLWLRQDOODERUDWRU\WHVWLQJRI WKHVDPSOHVREWDLQHGGXULQJJUDGLQJVKRXOGEHSHUIRUPHGDQGILQDOUHFRPPHQGDWLRQVVKRXOGEH EDVHGRQDVJUDGHGVRLOFRQGLWLRQV
&RGHPLQLPXPVSHU7DEOH
RIWKH
&%&VKRXOGEHFRPSOLHGZLWK
(IIHFWLYH3ODVWLFLW\,QGH[VKRXOGEHYHULILHGDWWKHFRPSOHWLRQRIWKHURXJKJUDGLQJ
,WVKRXOGEHQRWHGWKDWWKHDERYHUHFRPPHQGDWLRQVDUHEDVHGRQ VRLOVXSSRUWFKDUDFWHULVWLFV RQO\7KHVWUXFWXUDOHQJLQHHUVKRXOGGHVLJQWKHVODEDQGEHDP UHLQIRUFHPHQWEDVHGRQDFWXDO ORDGLQJFRQGLWLRQV
7KHIROORZLQJUHFRPPHQGDWLRQVVKRXOGEHLPSOHPHQWHGLQWRWKHGHVLJQ
x 3UHOLPLQDULO\DQDOORZDEOHEHDULQJFDSDFLW\RISRXQGVSHUVTXDUHIRRW SVI
PD\
EHFRQVLGHUHGIRUGHVLJQRIFRQWLQXRXVDQGSHULPHWHUIRRWLQJVW KDWPHHWWKHGHSWK DQGZLGWKUHTXLUHPHQWVLQWKHWDEOHDERYH7KLVYDOXHPD\EHL QFUHDVHGE\SVI IRUHDFKDGGLWLRQDOLQFKHVLQGHSWKDQGSVIIRUHDFKDGG LWLRQDOLQFKHVLQ ZLGWKWRDPD[LPXPYDOXHRISVI$GGLWLRQDOO\DQLQFUHDVHRIRQHWKLUGPD\EH DSSOLHGZKHQFRQVLGHULQJVKRUWWHUPOLYHORDGV
HJVHLVPLFDQGZLQGORDGV
,WPD\
EHSRVVLEOHWRXWLOL]HDKLJKHUDOORZDEOHVRLOEHDULQJSUHVVXUHIRUIRXQGDWLRQVGLUHFWO\ '(6,*13$5$0(7(6)25&219(17,21$//5(,1)25&('6+$//2:
)281'$7,216
'HVLJQ3DUDPHWHU ´/RZµ
([SDQVLRQ3RWHQWLDO
(,
´0HGLXPµ
([SDQVLRQ3RWHQWLDO
(,
)RXQGDWLRQ(PEHGPHQW'HSWKRU
0LQLPXP3HULPHWHU%HDP'HSWK
LQFKHVEHORZORZHVWDGMDFHQW
ILQLVKHGJUDGH
2QHDQG7ZR6WRU\²
7KUHH6WRU\²
)RXUDQG)LYH6WRU\²
2QHDQG7ZR6WRU\²
7KUHH6WRU\
)RXUDQG)LYH6WRU\²
0LQLPXP)RXQGDWLRQ:LGWK
,QFKHV
2QHDQG7ZR6WRU\²
7KUHH6WRU\
)RXUDQG)LYH6WRU\²
2QHDQG7ZR6WRU\²
7KUHH6WRU\²
)RXUDQG)LYH6WRU\²
0LQLPXP6ODE7KLFNQHVV
DFWXDO
LQFKHV LQFKHV
0LQLPXP6ODE5HLQIRUFLQJ
1RUHEDUµRQFHQWHU
HDFKZD\SODFHGLQWKHPLGGOH
RQHWKLUGRIWKHVODEWKLFNQHVV
1RUHEDUµRQFHQWHU
HDFKZD\SODFHGLQWKHPLGGOH
RQHWKLUGRIWKHVODEWKLFNQHVV
0LQLPXP)RRWLQJ5HLQIRUFHPHQW 7ZR1RUHLQIRUFLQJEDUV RQHWRSDQGRQHERWWRP
)RXU1RUHLQIRUFLQJEDUV
WZRWRSDQGWZRERWWRP
(IIHFWLYH3ODVWLFLW\,QGH[
3,
3UHVDWXUDWLRQRI6XEJUDGH6RLO
SHUFHQWRIRSWLPXPPRLVWXUH
FRQWHQW
0LQLPXPWRDGHSWKRI
LQFKHV
0LQLPXPWRDGHSWKRI
LQFKHV
7+(/$6326$62:1(5/39//&$'(/$:$5(/,0,7('/,$%,/,7<&203$1< 3URMHFW1R 6'
5HYLVHG3UHOLPLQDU\*HRWHFKQLFDO(YDOXDWLRQ 1RYHPEHU 3DFLILF*3$5H]RQH6DQ0DUFRV&DOLIRUQLD 3DJH
VXSSRUWHGE\EHGURFN7KHGHWHUPLQDWLRQRIDQDOORZDEOHVRLOE HDULQJSUHVVXUHRQ EHGURFNVKRXOGEHGHWHUPLQHGRQFHIRXQGDWLRQORDGVDQGHOHYDWLRQVDUHNQRZQ
x %DVHGRQRXUH[SHULHQFHLQWKHDU HDVWUXFWXUDOIRXQGDWLRQVPD\ EHGHVLJQHGLQ DFFRUGDQFHZLWK
&%&DQGWRZLWKVWDQGDWRWDOVHWWOHPHQWR ILQFKDQG PD[LPXPGLIIHUHQWLDOVHWWOHPHQWRIRQHKDOIRIWKHWRWDOVHWWOHPHQWRYHUDKRUL]RQWDO GLVWDQFHRIIHHW6HLVPLFDOO\LQGXFHGVHWWOHPHQWLVFRQVLGHUHGWREHPLQLPDO
x 7KHSDVVLYHHDUWKSUHVVXUHPD\SUHOLPLQDULO\EHFRPSXWHGDVDQHTXLYDOHQWIOXLGKDYLQJ DGHQVLW\RISVISHUIRRWRIGHSWKWRDPD[LPXPHDUWKSUHVVXUHRISVIIRU IRRWLQJVIRXQGHGRQHQJLQHHUHGILOO$FRHIILFLHQWRIIULFWLRQEHWZHHQVRLODQGFRQFUHWH RIPD\EHXVHGZLWKGHDGORDGIRUFHV:KHQFRPELQLQJSDVV LYHSUHVVXUHDQG IULFWLRQDOUHVLVWDQFHWKHSDVVLYHSUHVVXUHFRPSRQHQWVKRXOGEHUHGXFHGE\RQHWKLUG
x $JUDGHEHDPDPLQLPXPRILQFKHVZLGHDQGLQFKHVGHHSV KRXOGEHXWLOL]HG DFURVVODUJHHQWUDQFHVKRZHYHUWKHEDVHRIWKHJUDGHEHDPVKR XOGEHDWWKHVDPH HOHYDWLRQDVWKHERWWRPRIWKHDGMRLQLQJIRRWLQJV
x :HUHFRPPHQGWKDWFRQWUROMRLQWVEHSODFHGLQWZRGLUHFWLRQVVS DFHGWKHQXPHULF HTXLYDOHQWURXJKO\WLPHVWKHWKLFNQHVVRIWKHVODELQLQFKHV HJDLQFKVODEZRXOG
KDYHFRQWUROMRLQWVDW
LQFK>IHHW@FHQWHUV
7KHVHMRLQWV DUHDZLGHO\DFFHSWHG
PHDQVWRFRQWUROFUDFNVDQGVKRXOGEHUHYLHZHGE\WKHVWUXFWXUDOHQJLQHHU
8QGHUVODE0RLVWXUH0HPEUDQH
$PRLVWXUHDQGYDSRUUHWDUGLQJV\VWHPVKRXOGEHSODFHGEHORZVODEVRQJUDGHZKHUHPRLVWXUH PLJUDWLRQWKURXJKWKHVODELVXQGHVLUDEOH*XLGHOLQHVIRUWKHVHDUHSURYLGHGLQWKH &DOLIRUQLD
*UHHQ%XLOGLQJ6WDQGDUGV&RGH
&$/*UHHQ
6HFWLRQDQGWKH
&%&6HFWLRQ
,WVKRXOGEHUHDOL]HGWKDWWKHHIIHFWLYHQHVVRIWKHYDSRUUHWDU GLQJPHPEUDQHFDQEHDGYHUVHO\ LPSDFWHGDVDUHVXOWRIFRQVWUXFWLRQUHODWHGSXQFWXUHV HJVWDNHSHQHWUDWLRQVWHDUVSXQFWXUHV
IURPZDONLQJRQWKHYDSRUUHWDUGHUSODFHGDWRSWKHXQGHUO\LQJD JJUHJDWHOD\HUHWF 7KHVH
RFFXUUHQFHVVKRXOGEHOLPLWHGDVPXFKDVSRVVLEOHGXULQJFRQVWUXFWLRQ7KLFNHUPHPEUDQHVDUH JHQHUDOO\PRUHUHVLVWDQWWRDFFLGHQWDOSXQFWXUHWKDWWKLQQHURQHV3URGXFWVVSHFLILFDOO\GHVLJQHG IRUXVHDVPRLVWXUHYDSRUUHWDUG HUVPD\DOVREHPRUHSXQFWXUHU HVLVWDQW$OWKRXJKWKH&%& VSHFLILHVDPLOYDSRUUHWDUGHUPHPEUDQHLWLV*HR7HN·VRSLQL RQWKDWDPLQLPXPPLO PHPEUDQHZLWKMRLQWVSURSHUO\RYHUODSSHGDQGVHDOHGVKRXOGEHF RQVLGHUHGXQOHVVRWKHUZLVH VSHFLILHGE\WKHVODEGHVLJQSURIHVVLRQDO
7+(/$6326$62:1(5/39//&$'(/$:$5(/,0,7('/,$%,/,7<&203$1< 3URMHFW1R 6'
5HYLVHG3UHOLPLQDU\*HRWHFKQLFDO(YDOXDWLRQ 1RYHPEHU 3DFLILF*3$5H]RQH6DQ0DUFRV&DOLIRUQLD 3DJH
0RLVWXUHDQGYDSRUUHWDUGLQJV\VWHPVDUHLQWHQGHGWRSURYLGHD FHUWDLQOHYHORIUHVLVWDQFHWR YDSRUDQGPRLVWXUHWUDQVPLVVLRQWKURXJKWKHFRQFUHWHEXWGRQRWHOLPLQDWHLW7KHDFFHSWDEOH OHYHORIPRLVWXUHWUDQVPLVVLRQWKURXJKWKHVODELVWRDODUJHH[WHQWEDVHGRQWKHW\SHRIIORRULQJ XVHGDQGHQYLURQPHQWDOFRQGLWLRQV8OWLPDWHO\WKHYDSRUUHWDUGLQJV\VWHPVKRXOGEHFRPSULVHG RIVXLWDEOHHOHPHQWVWROLPLWPLJUDWLRQRIZDWHUDQGUHGXFHWUDQVPLVVLRQRIZDWHUYDSRUWKURXJK WKHVODEWRDFFHSWDEOHOHYHOV7KHVHOHFWHGHOHPHQWVVKRXOGKD YHVXLWDEOHSURSHUWLHV LH
WKLFNQHVVFRPSRVLWLRQVWUHQJWKDQGSHUPHDELOLW\
WRDFKLHYHWKHGHVLUHGSHUIRUPDQFHOHYHO
0RLVWXUHUHWDUGHUVFDQUHGXFHEXWQRWHOLPLQDWHPRLVWXUHYDSRUULVHIURPWKHXQGHUO\LQJVRLOV XS WKURXJK WKH VODE 0RLVWXUH UHWDUGHU V\VWHPV VKRXOG EH GHVLJQHG DQG FRQVWUXFWHG LQ DFFRUGDQFHZLWKDSSOLFDEOH$PHULFDQ&RQFUHWH,QVWLWXWH3RUWODQ G&HPHQW$VVRFLDWLRQ3RVW 7HQVLRQLQJ&RQFUHWH,QVWLWXWH$670DQG&DOLIRUQLD%XLOGLQJ&RGHUHTXLUHPHQWVDQGJXLGHOLQHV
*HR7HNGRHVQRWSUDFWLFHLQWKHILHOGRIPRLVWXUHYDSRUWUDQVPLVVLRQHYDOXDWLRQPLJUDWLRQVLQFH WKDWSUDFWLFHLVQRWDJHRWHFKQLFDOGLVFLSOLQH7KHUHIRUHZHUHFRPPHQGWKDWDTXDOLILHGSHUVRQ VXFKDVWKHIORRULQJFRQWUDFWRUVWUXFWXUDOHQJLQHHUDUFKLWHFW DQGRURWKHUH[SHUWVVSHFLDOL]LQJ LQPRLVWXUHFRQWUROZLWKLQWKHEXLOGLQJEHFRQVXOWHGWRHYDOXDWHWKHJHQHUDODQGVSHFLILFPRLVWXUH DQGYDSRUWUDQVPLVVLRQSDWKVDQGDVVRFLDWHGSRWHQWLDOLPSDFWRQWKHSURSRVHGFRQVWUXFWLRQ7KDW SHUVRQ
RUSHUVRQV
VKRXOGSURYLGH UHFRPPHQGDWLRQVUHODWLYHWR WKHVODEPRLVWXUHDQGYDSRU UHWDUGHUV\VWHPVDQGIRUPLJUDWLRQRISRWHQWLDODGYHUVHLPSDFW RIPRLVWXUHYDSRUWUDQVPLVVLRQ RQ YDULRXV FRPSRQHQWV RI WKH VWUXFWXUHV DV GHHPHG DSSURSULDWH ,Q DGGLWLRQ WKH UHFRPPHQGDWLRQVLQWKLVUHSRUWDQ GRXUVHUYLFHVLQJHQHUDODUH QRWLQWHQGHGWRDGGUHVVPROG
SUHYHQWLRQ
VLQFHZHDORQJZLWKJHRWHFKQLFDOFRQVXOWDQWVLQJHQHUDOGRQRWSUDFWLFHLQWKHDUHD RIPROGSUHYHQWLRQ,IVSHFLILFUHFRPPHQGDWLRQVDGGUHVVLQJSRW HQWLDOPROGLVVXHVDUHGHVLUHG WKHQDSURIHVVLRQDOPROGSUHYHQWLRQFRQVXOWDQWVKRXOGEHFRQWDFWHG
0LVFHOODQHRXV)RXQGDWLRQ5HFRPPHQGDWLRQV
x 7RUHGXFHPRLVWXUHSHQHWUDWLRQEHQHDWKWKHVODERQJUDGHDUHDV XWLOLW\WUHQFKHV VKRXOGEHEDFNILOOHGZLWKHQJLQHHUHGILOOOHDQFRQFUHWHRUFRQFUHWHVOXUU\ZKHUHWKH\ LQWHUFHSWWKHSHULPHWHUIRRWLQJRUWKLFNHQHGVODEHGJH
7+(/$6326$62:1(5/39//&$'(/$:$5(/,0,7('/,$%,/,7<&203$1< 3URMHFW1R 6'
5HYLVHG3UHOLPLQDU\*HRWHFKQLFDO(YDOXDWLRQ 1RYHPEHU 3DFLILF*3$5H]RQH6DQ0DUFRV&DOLIRUQLD 3DJH
x 6SRLOVIURPWKHIRRWLQJH[FDYDWLRQVVKRXOGQRWEHSODFHGLQWKH VODERQJUDGHDUHDV XQOHVV SURSHUO\ FRPSDFWHG DQG WHVWHG 7KH H[FDYDWLRQV VKRXOG EH IUHH RI ORRVHVORXJKHGPDWHULDOVDQGEHQHDWO\WULPPHGDWWKHWLPHRIFRQFUHWHSODFHPHQW )RXQGDWLRQ6HW%DFNV
:KHUHDSSOLFDEOHWKHIROORZLQJVHWEDFNVVKRXOGDSSO\WRDOOIRXQGDWLRQV$Q\LPSURYHPHQWVQRW F R Q I R U P L Q J W R W K H V H V H W E D F N V P D \ E H V X E M H F W W R O D W H U D O P R Y H P H Q WV DQGRU GLIIHUHQWLDO
VHWWOHPHQWV
x 7KHRXWVLGHERWWRPHGJHRIDOOIRRWLQJVVKRXOGEHVHWEDFNDPLQLPXPRI+ ZKHUH
+LVWKHVORSHKHLJKW
IURPWKHIDFHRIDQ\GHVFHQGLQJVORSH7KHVHWEDFNVKRXOGEH DWOHDVWIHHWDQGQHHGQRWH[FHHGIHHW
x 7KHERWWRPRIDOOIRRWLQJVIRUVWUXFWXUHVQHDUUHWDLQLQJZDOOVVKRXOGEHGHHSHQHGVR DVWRH[WHQGEHORZD
SURMHFWLRQXSZDUGIURPWKHERWWRPLQVLGHHGJHRIWKHZDOO VWHP7KLVDSSOLHVWRWKHH[LVWLQJUHWDLQLQJZDOOVDORQJWKHS HULPHWHULIWKH\DUHWR UHPDLQ
x 7KHERWWRPRIDQ\H[LVWLQJIRXQGDWLRQVIRUVWUXFWXUHVVKRXOGEH GHHSHQHGVRDVWR H[WHQGEHORZD
SURMHFWLRQXSZDUGIURPWKHERWWRPRIWKHQHDUHVWH[FDYDWLRQ 6HLVPLF'HVLJQ3DUDPHWHUV
7KHSURSHUW\LVORFDWHGDWDSSUR[LPDWHO\
/DWLWXGHDQG
/RQJLWXGH6SHFWUDO
DFFHOHUDWLRQV
6VDQG6
IRUDQGVHFRQGSHULRGVIRUD ULVNWDUJHWHGWZR
SHUFHQW
SUREDELOLW\RIH[FHHGDQFHLQ\HDUV
0&(5
ZHUHGHWHUPLQHGXVLQJWKHZHELQWHUIDFHSURYLGHG
E\6($2&26+3'
KWWSV
VHLVPLFPDSVRUJ
WRDFFHVVWKH86*66HLVPLF'HVLJQ3DUDPHWHUV
:HKDYHVHOHFWHGD6LWH&ODVV´&µEDVHGRQWKHDSSDUHQWGHQVLW\RIWKHROGDOOXYLDOGHSRVLWV7KH UHVXOWVEDVHGRQ$6&(DQGWKH
&%&DUHSUHVHQWHGLQWKHIROORZLQJWDEOH
7+(/$6326$62:1(5/39//&$'(/$:$5(/,0,7('/,$%,/,7<&203$1< 3URMHFW1R 6'
5HYLVHG3UHOLPLQDU\*HRWHFKQLFDO(YDOXDWLRQ 1RYHPEHU 3DFLILF*3$5H]RQH6DQ0DUFRV&DOLIRUQLD 3DJH
6(,60,&3$5$0(7(56
0DSSHGVHF3HULRG6SHFWUDO$FFHOHUDWLRQ6V
J
0DSSHGVHF3HULRG6SHFWUDO$FFHOHUDWLRQ6 J &RHIILFLHQWIRU6LWH&ODVV´&µ)D
&RHIILFLHQWIRU6LWH&ODVV´&µ)Y
0D[LPXP&RQVLGHUHG(DUWKTXDNH
0&(5
6SHFWUDO
5HVSRQVH$FFHOHUDWLRQIRU6HFRQG606 J
0D[LPXP&RQVLGHUHG(DUWKTXDNH
0&(5
6SHFWUDO
5HVSRQVH$FFHOHUDWLRQIRU6HFRQG60
J
'DPSHG'HVLJQ6SHFWUDO5HVSRQVH
$FFHOHUDWLRQ3DUDPHWHUDW6HFRQG6'6 J
'DPSHG'HVLJQ6SHFWUDO5HVSRQVH
$FFHOHUDWLRQ3DUDPHWHUDWVHFRQG6' J
0RGLILHG3HDN*URXQG$FFHOHUDWLRQ
3*$0
J
6HLVPLF'HVLJQ&DWHJRU\'
6RLO6XOIDWH&RQWHQW
1HDUE\VXOIDWHFRQWHQWWHVWUHVXOWVLQGLFDWHZDWHUVROXEOHVXOI DWHLVOHVVWKDQSHUFHQWE\ ZHLJKWZKLFKLVFRQVLGHUHG´6µDVSHU7DEOH
RI$&, DVVXFKQRVSHFLDO
UHFRPPHQGDWLRQVIRUFRQFUHWHDUHLQFOXGHGKHUHLQ
3UHOLPLQDU\3DYHPHQW'HVLJQ
7UDIILFLQGLFHVKDYHQRWEHHQSURYLGHGWRRXUILUPGXULQJWKLV VWDJHRISODQQLQJ,QDGGLWLRQ UHPHGLDO JUDGHG KDV QRW EHHQ FRPSOHWHG WR HYDOXDWH VSHFLILF VWUHHW VXEJUDGH FRQGLWLRQV 7KHUHIRUHZHKDYHUHIHUHQFHGWKHPLQLPXPVWUXFWXUDOVHFWLRQVEDVHGRQWKH&LW\RI6DQ0DUFRV· 8UEDQ6WUHHW'HVLJQIRUUHVLGHQWLDOVWUHHWV
6DQ0DUFRV
DQGDUHSUHVHQWHGEHORZ
35(/,0,1$5<$63+$/73$9(0(176758&785$/
6(&7,21
'HVLJQ&ULWHULD $VSKDOWLF&RQFUHWH
$&
7KLFNQHVV
LQFKHV
$JJUHJDWH%DVH
$%
7KLFNQHVV
LQFKHV
5HVLGHQWLDO
$VQRWHGLQWKH8UEDQ6WUHHW'HV LJQGRFXPHQWDFWXDOVWUXFWXUDO SDYHPHQWGHVLJQLVWREH GHWHUPLQHGE\WKHJHRWHFKQLFDOHQJLQHHU·VWHVWLQJ
5YDOXH
RIWKHVXEJUDGH7KXVWKHDFWXDO5
YDOXHRIVXEJUDGHVRLOVFDQRQO\EHGHWHUPLQHGDWWKHFRPSOHWLRQRIJUDGLQJIRUVWUHHWVXEJUDGH DQGWKHDERYHYDOXHVDUHVXEMHFWWRFKDQJHEDVHGODERUDWRU\WHV WLQJRIWKHDVJUDGHGVRLOVQHDU VXEJUDGHHOHYDWLRQV7KHILQDOSDYHPHQWGHVLJQPD\EHWKLFNHUW KDQWKH&LW\RI6DQ0DUFRV PLQLPXPWKLFNQHVVSUHVHQWHGDERYH
7+(/$6326$62:1(5/39//&$'(/$:$5(/,0,7('/,$%,/,7<&203$1< 3URMHFW1R 6'
5HYLVHG3UHOLPLQDU\*HRWHFKQLFDO(YDOXDWLRQ 1RYHPEHU 3DFLILF*3$5H]RQH6DQ0DUFRV&DOLIRUQLD 3DJH
$VSKDOWFRQFUHWHDQGDJJUHJDWHEDVHVKRXOGFRQIRUPWRFXUUHQW&DOWUDQV6WDQGDUG6SHFLILFDWLRQV 6HFWLRQ
DQGUHVSHFWLYHO\$VDQDOWHUQDWLYHDVSKDOWFRQFUHWHFDQFRQIRUPWR6HFWLRQ RIWKHFXUUHQW6WDQGDUG6SHFLILFDWLRQVIRU3XEOLF:RUN *UHHQ%RRN
&UXVKHGDJJUHJDWH
EDVHRUFUXVKHGPLVFHOODQHRXVEDVHFDQFRQIRUPWR6HFWLRQ DQGRIWKH*UHHQ %RRNUHVSHFWLYHO\3DYHPHQWEDVHVKRXOGEHFRPSDFWHGWRDWOH DVW SHUFHQWRIWKH$670
'ODERUDWRU\PD[LPXPGU\GHQVLW\
PRGLILHGSURFWRU
$OOSDYHPHQWLQVWDOODWLRQLQFOXGLQJSUHSDUDWLRQDQGFRPSDFWLRQRIVXEJUDGHFRPSDFWLRQRIEDVH PDWHULDOSODFHPHQWDQGUROOLQJRIDVSKDOWLFFRQFUHWHVKRXOGEHGRQHLQDFFRUGDQFHZLWKWKHFLW\ RI6DQ0DUFRVVSHFLILFDWLRQVDQGXQGHUWKHREVHUYDWLRQDQGWHV WLQJRI*HR7HNDQGD&LW\ ,QVSHFWRUZKHUHUHTXLUHG-XULVGLFWLRQDOPLQLPXPFRPSDFWLRQUH TXLUHPHQWVLQH[FHVVRIWKH DIRUHPHQWLRQHGPLQLPXPVPD\JRYHUQ
5(7$,1,1*:$//'(6,*1$1'&216758&7,21
*HQHUDO'HVLJQ&ULWHULD
3UHOLPLQDU\ SODQV DUH QRW \HW DYDLODEOH LI UHWDLQLQJ ZDOOV DUHD G G H G D W D O D W H U G D W H W K H UHFRPPHQGDWLRQVSUHVHQWHGKHUHLQPD\DSSO\WRW\SLFDOPDVRQU\RUFRQFUHWHYHUWLFDOUHWDLQLQJ ZDOOVWRDPD[LPXPKHLJKWRIIHHW$GGLWLRQDOUHYLHZDQGUH FRPPHQGDWLRQVVKRXOGEH UHTXHVWHGIRUKLJKHUZDOOV
5HWDLQLQJZDOOIRXQGDWLRQVHPEHGGHGDPLQLPXPRILQFKHVLQWR HQJLQHHUHGILOORUGHQVH IRUPDWLRQDOPDWHULDOVVKRXOGEHGHVLJQHGXVLQJDQDOORZDEOHEHD ULQJFDSDFLW\RISVI$Q LQFUHDVHRIRQHWKLUGPD\EHDSSOLHGZKHQFRQVLGHULQJVKRUWWHU POLYHORDGV HJVHLVPLFDQG
ZLQGORDGV
7KHSDVVLYHHDUWKSUHVVXUHPD\EHFRPSXWHGDVDQHTXLYDOHQWIOXLGKDYLQJDGHQVLW\ RISVISHUIRRWRIGHSWKWRDPD[LPXPHDUWKSUHVVXUHRISVI$FRHIILFLHQWRIIULFWLRQ EHWZHHQVRLODQGFRQFUHWHRIPD\EHXVHGZLWKGHDGORDGIRUFHV:KHQFRPELQLQJSDVVLYH SUHVVXUHDQGIULFWLRQDOUHVLVWDQFHWKHSDVVLYHSUHVVXUHFRPSRQ HQWVKRXOGEHUHGXFHGE\RQH WKLUG
$QHTXLYDOHQWIOXLGSUHVVXUHDSSURDFKPD\EHXVHGWRFRPSXWHWK HKRUL]RQWDODFWLYHSUHVVXUH DJDLQVWWKHZDOO7KHDSSURSULDWHIOXLGXQLWZHLJKWVDUHJLYHQLQWKHWDEOHEHORZIRUVSHFLILFVORSH JUDGLHQWVRIUHWDLQHGPDWHULDOV
6XUIDFH6ORSHRI
5HWDLQHG0DWHULDOV
+
9
(TXLYDOHQW)OXLG3UHVVXUH
3&)
6HOHFW%DFNILOO
/HYHO
7+(/$6326$62:1(5/39//&$'(/$:$5(/,0,7('/,$%,/,7<&203$1< 3URMHFW1R 6'
5HYLVHG3UHOLPLQDU\*HRWHFKQLFDO(YDOXDWLRQ 1RYHPEHU 3DFLILF*3$5H]RQH6DQ0DUFRV&DOLIRUQLD 3DJH
6HOHFWEDFNILOOVKRXOGFRQVLVWRIQDWLYHRULPSRUWHGVDQGRWKH U DSSURYHGPDWHULDOVZLWKDQ6(!DQGDQ(, DQGVKRXOGEH SURYLGHGWKURXJKRXWWKHDFWLYH]RQH
7KHDERYHHTXLYDOHQWIOXLGZHLJKWVGRQRWLQFOXGHRWKHUVXSHULP SRVHGORDGLQJFRQGLWLRQVVXFK DVH[SDQVLYHVRLOYHKLFXODUWUDIILFVWUXFWXUHVVHLVPLFFRQGLWLRQVRUDGYHUVHJHRORJLFFRQGLWLRQV
$GGLWLRQDOODWHUDOIRUFHVFDQEHLQGXFHGRQUHWDLQLQJZDOOVGXULQJDQHDUWKTXDNH)RUOHYHOEDFNILOO DQGD6LWH&ODVV´&µDVXSSOHPHQWDOHDUWKTXDNHLQGXFHGHTXLYDO HQWIOXLGSUHVVXUHRISFI VKRXOGEHFRQVLGHUHGZKHUHUHTXLUHG7KLVIRUFHFDQEHDVVXPH GWRDFWDVDW\SLFDOIOXLG SUHVVXUHUHVXOWLQJLQDWULDQJX ODUSUHVVXUHGLVWULEXWLRQ7KH &%&RQO\UHTXLUHVWKH
DGGLWLRQDOHDUWKTXDNHLQGXFHGODWHUDOIRUFHEHFRQVLGHUHGRQUH WDLQLQJZDOOVLQH[FHVVRIVL[
IHHWLQKHLJKW
KRZHYHUWKHDGGLWLRQDOIRUFHPD\EHDSSOLHGLQ GHVLJQRIOHVVHUZDOOVDWWKH GLVFUHWLRQRIWKHZDOOGHVLJQHU
5HVWUDLQHG5HWDLQLQJ:DOOV
$Q\UHWDLQLQJZDOOWKDWZLOOEHUHVWUDLQHGSULRUWRSODFLQJEDF NILOORUZDOOVWKDWKDYHPDOHRU UHHQWUDQWFRUQHUVVKRXOGEHGHVLJQHGIRUDWUHVWVRLOFRQGLWLRQVXVLQJDQHTXLYDOHQWIOXLGSUHVVXUH RISFI
VHOHFWEDFNILOO
SOXVDQ\DSSOLFDEOHVXUFKDUJHORDGLQJ)RUDUHDVKDYLQJPDOHRUUHHQWUDQW FRUQHUVWKHUHVWUDLQHGZDOOGHVLJQVKRXOGH[WHQGDPLQLPXPGLVWDQFHHTXDOWRWZLFHWKHKHLJKW RIWKHZDOOODWHUDOO\IURPWKHFRUQHURUDVRWKHUZLVHGHWHUPLQHGE\WKHVWUXFWXUDOHQJLQHHU
:DOO%DFNILOODQG'UDLQDJH
:DOOEDFNILOOVKRXOGLQFOXGHDPLQLPXPRQH
IRRWZLGHVHFWLR QRIöWRLQFKFOHDQFUXVKHG
URFN
RUDSSURYHGHTXLYDOHQW
7KHURFNVKRXOGEHSODFHGLPPHG LDWHO\DGMDFHQWWRWKHEDFNRI ZDOODQGH[WHQGXSIURPWKHEDFNGUDLQWRZLWKLQDSSUR[LPDWHO\ LQFKHVRIILQLVKJUDGH7KH XSSHULQFKHVVKRXOGFRQVLVWRIFRPSDFWHGRQVLWHPDWHULDOV,IWKHZDOOVDUHGHVLJQHGXVLQJWKH ´VHOHFWµEDFNILOOGHVLJQSDUDPHWHUVWKHQWKH´VHOHFWµPDWHULDO VVKDOOEHSODFHGZLWKLQWKHDFWLYH ]RQHDVGHILQHGE\D
+
9 SURMHFWLRQIURPWKHEDFNRIWKH UHWDLQLQJZDOOIRRWLQJXSWRWKH UHWDLQHGVXUIDFHEHKLQGWKHZDOO3UHVHQFHRIRWKHUPDWHULDOV PLJKWQHFHVVLWDWHUHYLVLRQWRWKH SDUDPHWHUVSURYLGHGDQGPRGLILFDWLRQRIZDOOGHVLJQV
7KHEDFNILOOPDWHULDOVVKRXOGEHSODFHGLQOLIWVQRJUHDWHUWKDQLQFKHVLQWKLFNQHVVDQGFRPSDFWHG WRDPLQLPXPRI
RIWKHPD[LPXPGU\GHQVLW\DVGHWHUPLQHGLQDFFRUGDQFHZLWK$6707HVW 0HWKRG'3URSHUVXUIDFHGUDLQDJHQHHGVWREHSURYLGHGDQ GPDLQWDLQHG:DWHUVKRXOG QRWEHDOORZHGWRSRQGEHKLQGUHWDLQLQJZDOOV:DWHUSURRILQJR IZDOOVVKRXOGEHSHUIRUPHG ZKHUHPRLVWXUHPLJUDWLRQWKURXJKWKHZDOOLVXQGHVLUDEOH
7+(/$6326$62:1(5/39//&$'(/$:$5(/,0,7('/,$%,/,7<&203$1< 3URMHFW1R 6'
5HYLVHG3UHOLPLQDU\*HRWHFKQLFDO(YDOXDWLRQ 1RYHPEHU 3DFLILF*3$5H]RQH6DQ0DUFRV&DOLIRUQLD 3DJH
5HWDLQLQJZDOOVVKRXOGEHSURYLGHGZLWKDQDGHTXDWHSLSHDQGJUDYHOEDFNGUDLQV\VWHPWRUHGXFH WKHSRWHQWLDOIRUK\GURVWDWLFSUHVVXUHVWRGHYHORS$LQFKGLDPHWHUSHUIRUDWHGFROOHFWRUSLSH
6FKHGXOH39&RUDSSURYHGHTXLYDOHQW
LQDPLQLPXPRIRQH
FXELFIRRWSHUOLQHDOIRRWRI
WRRQH
LQFKFOHDQFUXVKHGURFNRUHTXLYDOHQWZUDSSHGL QILOWHUIDEULFVKRXOGEHSODFHG QHDUWKHERWWRPRIWKHEDFNILOODQGEHGLUHFWHG
YLDDVROLGRXWOHWSLSH
WRDQDSSURSULDWHGLVSRVDO
DUHD
'UDLQRXWOHWVVKRXOGEHPDLQWDLQHGRYHUWKHOLIHRIWKHIXWXUH SURHMFWDQGVKRXOGQRWEH REVWUXFWHGRUSOXJJHGE\DGMDFHQWLPSURYHPHQWV
3267&216758&7,21&216,'(5$7,216
/DQGVFDSH0DLQWHQDQFHDQG3ODQWLQJ
:DWHUKDVEHHQVKRZQWRZHDNHQWKHLQKHUHQWVWUHQJWKRIVRLODQGVORSHVWDELOLW\LVVLJQLILFDQWO\ UHGXFHGE\RYHUO\ZHWFRQGLWLRQV3RVLWLYHVXUIDFHGUDLQDJHDZD\IURPJUDGHGVORSHVVKRXOGEH PDLQWDLQHGDQGRQO\WKHDPRXQWRILUULJDWLRQQHFHVVDU\WRVXVWD LQSODQWOLIHVKRXOGEHSURYLGHG IRUSODQWHGVORSHV&RQWUROOLQJVXUIDFHGUDLQDJHDQGUXQRIIDQGPDLQWDLQLQJDVXLWDEOHYHJHWDWLRQ FRYHUFDQPLQLPL]HHURVLRQ3ODQWVVHOHFWHGIRUODQGVFDSLQJVKRXOGEHOLJKWZHLJKWGHHSURRWHG W\SHVWKDWUHTXLUHOLWWOHZDWHUDQGDUHFDSDEOHRIVXUYLYLQJWKHSUHYDLOLQJFOLPDWH
2YHUZDWHULQJVKRXOGEHDYRLGHG7KHVRLOVVKRXOGEHPDLQWDLQHGLQDVROLGWRVHPLVROLGVWDWHDV GHILQHGE\WKHPDWHULDOV$WWHUEHUJ/LPLWV&DUHVKRXOGEHWDNH QZKHQDGGLQJVRLODPHQGPHQWV WRDYRLGH[FHVVLYHZDWHULQJ/HD FKLQJDVDPHWKRGRIVRLOSUHS DUDWLRQSULRUWRSODQWLQJLVQRW UHFRPPHQGHG $Q DEDWHPHQW SURJUDP WR FRQWURO JURXQGEXUURZLQJURGHQWV VKRXOG EH LPSOHPHQWHGDQGPDLQWDLQHG7KLVLVFULWLFDODVEXUURZLQJURGHQWVFDQGHFUHDVHGWKHORQJWHUP SHUIRUPDQFHRIVORSHV
,WLVFRPPRQIRUSODQWLQJWREHSODFHGDGMDFHQWWRVWUXFWXUHVLQSODQWHURUODZQDUHDV7KLVZLOO UHVXOWLQWKHLQWURGXFWLRQRIZDWHULQWRWKHJURXQGDGMDFHQWWR WKHIRXQGDWLRQ7KLVW\SHRI ODQGVFDSLQJVKRXOGEHDYRLGHG,IXVHGWKHQH[WUHPHFDUHVKRX OGEHH[HUFLVHGZLWKUHJDUGWR WKHLUULJDWLRQDQGGUDLQDJHLQWKHVHDUHDV:DWHUSURRILQJRIWKHIRXQGDWLRQDQGRUVXEGUDLQVPD\ EHZDUUDQWHGDQGDGYLVDEOH:HFRXOGGLVFXVVWKHVHLVVXHVLI GHVLUHGZKHQSODQVDUHPDGH DYDLODEOH
'UDLQDJH
7KHQHHGWRPDLQWDLQSURSHUVXUIDFHGUDLQDJHDQGVXEVXUIDFHV\VWHPVFDQQRWEHRYHUO\HPSKDVL]HG 3RVLWLYHGUDLQDJHVKRXOGEHPDLQWDLQHGDWDOOWLPHV'UDLQDJHVKRXOGQRWIORZXQFRQWUROOHGGRZQ DQ\GHVFHQGLQJVORSH:DWHUVKRXOGEHGLUHFWHGDZD\IURPIRXQGDWLRQVDQGQRWDOORZHGWRSRQG 7+(/$6326$62:1(5/39//&$'(/$:$5(/,0,7('/,$%,/,7<&203$1< 3URMHFW1R 6'
5HYLVHG3UHOLPLQDU\*HRWHFKQLFDO(YDOXDWLRQ 1RYHPEHU 3DFLILF*3$5H]RQH6DQ0DUFRV&DOLIRUQLD 3DJH
RUVHHSLQWRWKHJURXQGDGMDFHQWWRWKHIRRWLQJV3URSHUW\GUD LQDJHVKRXOGFRQIRUPWR6HFWLRQ RIWKH
&%&5RRIJXWWHUVDQGGRZQVSRXWVVKRXOGGLVFKDUJHRQWRSDYHGVXUIDFHVVORSLQJ DZD\IURPWKHVWUXFWXUHRULQWRDFORVHGSLSHV\VWHPZKLFKRXWI DOOVWRWKHVWUHHWJXWWHUSDQRU GLUHFWO\WRWKHVWRUPGUDLQV\VWHP3DGGUDLQDJHVKRXOGEHGLUHFWHGWRZDUGDSSURYHGDUHDVDQGQRW EHEORFNHGE\RWKHULPSURYHPHQWV
3/$15(9,(:$1'&216758&7,212%6(59$7,216
:HUHFRPPHQGWKDWIXWXUHJUDGLQJVSHFLILFDWLRQVUHWDLQLQJZDO OVKRULQJSODQVDQGIRXQGDWLRQ SODQVEHUHYLHZHGE\WKLVRIILFHSULRUWRFRQVWUXFWLRQWRFKHFN IRUFRQIRUPDQFHZLWKWKH UHFRPPHQGDWLRQVRIWKLVUHSRUW$GGLWLRQDOUHFRPPHQGDWLRQVPD\EHQHFHVVDU\EDVHGRQWKHVH UHYLHZV:HDOVRUHFRPPHQGWKDW*HR7HNUHSUHVHQWDWLYHVEHSUHVHQWGXULQJIXWXUHJUDGLQJDQG IRXQGDWLRQ FRQVWUXFWLRQ WR FKHFN IRU SURSHU LPSOHPHQWDWLRQ RI W KH JHRWHFKQLFDO UHFRPPHQGDWLRQV7KHRZQHUGHYHORSHUVKRXOGKDYH*HR7HN·VUHSUHVHQWDWLYHSHUIRUPDWOHDVW WKHIROORZLQJGXWLHV
x 2EVHUYHFOHDULQJDQGJUXEELQJRSHUDWLRQVIRUSURSHUUHPRYDORIXQVXLWDEOHPDWHULDOV x 2EVHUYHDQGWHVWERWWRPRIUHPRYDOVSULRUWRILOOSODFHPHQW x (YDOXDWHWKHVXLWDELOLW\RIRQVLWHDQGLPSRUWPDWHULDOVIRUILOOSODFHPHQWDQGFROOHFWVRLO VDPSOHVIRUODERUDWRU\WHVWLQJZKHQQHFHVVDU\
x 2EVHUYHWKHILOOIRUXQLIRUPLW\GXULQJSODFHPHQWLQFOXGLQJXWLOLW\WUHQFKHV x 2EVHUYHDQGWHVWWKHILOOIRUILHOGGHQVLW\DQGUHODWLYHFRPSDFWLRQ x 2EVHUYHDQGSUREHIRXQGDWLRQH[FDYDWLRQVWRFRQILUPVXLWDELOLW\RIEHDULQJPDWHULDOV ,IUHTXHVWHGDFRQVWUXFWLRQREVHUYDWLRQDQGFRPSDFWLRQUHSRUW FDQEHSURYLGHGE\*HR7HN ZKLFKFDQFRPSO\ZLWKWKHUHTXLUHPHQWVRIWKHJRYHUQPHQWDODJHQ FLHVKDYLQJMXULVGLFWLRQRYHU WKHIXWXUHGHYHORSPHQW:HUHFRPPHQGWKDWWKHVHDJHQFLHVEHQRWLILHGSULRUWRFRPPHQFHPHQW RIFRQVWUXFWLRQVRWKDWQHFHVVDU\JUDGLQJSHUPLWVFDQEHREWDLQHG /,0,7 $ 7,216
7KHVFRSHRIRXUHYDOXDWLRQLVOLPLWHGWRWKHDUHDH[SORUHGWKDWLVVKRZQRQWKH%RULQJ/RFDWLRQ 0DS
)LJXUH
7KLVHYDOXDWLRQGRHVQRWDQGVKRXOGLQQRZD\ EHFRQVWUXHGWRHQFRPSDVVDQ\ DUHDVEH\RQGWKHVSHFLILFDUHDRISURSRVHGFRQVWUXFWLRQDVLQGL FDWHGWRXVE\WKHFOLHQW7KH VFRSHLVEDVHGRQRXUXQGHUVWDQGLQJRIWKHIXWXUHGHYHORSPHQWD QGWKHFOLHQW·VQHHGVRXU SURSRVDO
3URSRVDO1R3 6'
GDWHG0DUFKDQGJ HRWHFKQLFDOHQJLQHHULQJ
VWDQGDUGVQRUPDOO\XVHGRQVLPLODUSURSHUW\LQWKLVUHJLRQ
7+(/$6326$62:1(5/39//&$'(/$:$5(/,0,7('/,$%,/,7<&203$1< 3URMHFW1R 6'
5HYLVHG3UHOLPLQDU\*HRWHFKQLFDO(YDOXDWLRQ 1RYHPEHU 3DFLILF*3$5H]RQH6DQ0DUFRV&DOLIRUQLD 3DJH
7KHPDWHULDOVREVHUYHGRQWKHSURSHUW\DSSHDUWREHUHSUHVHQWDW LYHRIWKHDUHD KRZHYHUVRLO
DQGEHGURFNPDWHULDOVYDU\LQFKDUDFWHUEHWZHHQH[FDYDWLRQVDQGQDWXUDORXWFURSVRUFRQGLWLRQV H[SRVHGGXULQJSURSHUW\FRQVWUXFWLRQ3URSHUW\FRQGLWLRQVPD\ YDU\GXHWRVHDVRQDOFKDQJHV RURWKHUIDFWRUV*HR7HN,QF DVVXPHVQRUHVSRQVLELOLW\RUOL DELOLW\IRUZRUNWHVWLQJRU UHFRPPHQGDWLRQVSHUIRUPHGRUSURYLGHGE\RWKHUV
6LQFHRXUUHFRPPHQGDWLRQVDUHEDVHGRQWKHSURSHUW\FRQGLWLRQV REVHUYHGDQGHQFRXQWHUHG DQGODERUDWRU\WHVWLQJRXUFRQFOXVLRQVDQGUHFRPPHQGDWLRQVDUHSURIHVVLRQDORSLQLRQVWKDWDUH OLPLWHGWRWKHH[WHQWRIWKHDYDLODEOHGDWD2EVHUYDWLRQVGXUL QJFRQVWUXFWLRQDUHLPSRUWDQWWR DOORZIRUDQ\FKDQJHLQUHFRPPHQGDWLRQVIRXQGWREHZDUUDQWHG 7KHVHRSLQLRQVKDYHEHHQ GHULYHGLQDFFRUGDQFHZLWKFXUUHQWVWDQGDUGVRISUDFWLFHDQGQRZDUUDQW\LVH[SUHVVHGRULPSOLHG 6WDQGDUGVRISUDFWLFHDUHVXEMHFWWRFKDQJHZLWKWLPH
7+(/$6326$62:1(5/39//&$'(/$:$5(/,0,7('/,$%,/,7<&203$1< 3URMHFW1R 6'
5HYLVHG3UHOLPLQDU\*HRWHFKQLFDO(YDOXDWLRQ 1RYHPEHU 3DFLILF*3$5H]RQH6DQ0DUFRV&DOLIRUQLD 3DJH
6(/(&7('5()(5(1&(6
$PHULFDQ6RFLHW\RI&LYLO(QJLQHHUV
$6&(
´0LQLPXP'HVL JQ/RDGVIRU%XLOGLQJVDQG
2WKHU6WUXFWXUHVµ$6&(6(,
$670,QWHUQDWLRQDO
$670
´$6709ROXPHVDQG
6RLODQG5RFNµ
%U\DQW:$DQG+DUW(:)DXOW5XSWXUH+D]DUG=RQHV LQ&DOLIRUQLD$OTXLVW3ULROR (DUWKTXDNH)DXOW=RQLQJ$FWZLWK,QGH[WR(DUWKTXDNH)DXOW=RQH V0DSV&DOLIRUQLD *HRORJLFDO6XUYH\
6SHFLDO3XEOLFDWLRQ
&DOLIRUQLD&RGHRI5HJXODWLRQV7LWOH
´&DOLIRUQLD%XLOGLQJ&RGHµYROXPHV
&DOLIRUQLD*HRORJLFDO6XUYH\
&*6IRUPHUO\UHIHUUHGWRDVWKH&DOLIRUQLD'LYLVLRQRI0LQHVDQG *HRORJ\
´*HRORJLF0DSRI&DOLIRUQLDµ
BBBB
´0DSVRI.QRZQ$FWLYH)DXOW1HDU6RXUFH=RQHVLQ&D OLIRUQLDDQG$GMDFHQW 3RUWLRQVRI1HYDGDµ,QWHUQDWLRQDO&RQIHUHQFHRI%XLOGLQJ2IILFLDOV &LW\RI6DQ0DUFRV&LW\RI6DQ0DUFRV*HQHUDO3ODQDGRSWHG)HEUXDU\ BBBB´&LW\RI6DQ0DUFRV%03'HVLJQ0DQXDOµGDWHG)HEUXDU\ BBBB ´&LW\ RI 6DQ 0DUFRV 8UEDQ 6WUHHW 'HVLJQ &ULWHULDµ KWWSV ZZZVDQ
PDUFRVQHWKRPHVKRZGRFXPHQW"LG
QRWGDWHGDFFHVVHG2FWREHU
*HR7HN,QF,QKRXVHSURSULHWDU\LQIRUPDWLRQ
.HQQHG\03DQG7DQ66´*HRORJLF0DSRIWKH2FHDQVLGH[PLQXWH4XDGUDQJOH &DOLIRUQLDµ &DOLIRUQLD *HRORJLFDO 6XUYH\ 5HJLRQDO *HRORJLF 0DS 1R PDS VFDOH
6WUXFWXUDO(QJLQHHUV$VVRFLDWLRQRI&DOLIRUQLD&DOLIRUQLD2IILFHRI6WDWHZLGH+HDOWK3ODQQLQJDQG 'HYHORSPHQW
6(2&26+3'
6HLVPLF 'HVLJQ 0DSV ZHE LQWHUID FH
KWWSV
VHLVPLFPDSVRUJ
7HU]DJKL.DQG3HFN5
´6RLO0HFKDQLFVLQ(QJLQHHULQJ3UDFWLFHµVHFRQGHGLWLRQ
3RLQVHWWLD$YHQXH6XLWH$
9LVWD&DOLIRUQLD
)LJXUH
6LWH/RFDWLRQ0DS
3DFLILF*3$5H]RQH3URMHFW
1:&RUQHURI/LQGD9LVWD /DV3RVDV5G
6DQ0DUFRV&DOLIRUQLD
31
6' 1RYHPEHU
,QWHUDFWLYH9LVLWRU0DSIURP86)RUHVWU\6HUYLFH
127726&$/(
$3352;,0$7(
6,7(/2&$ 7,21
/(*(1'
$3352;,0$7(/2&$7,212)$//89,80 %25,1*7(67/2&$7,216
/,0,762)3523(57<6$17,$*2)250$7,21&,5&/(':+(5(%85,(' 3RLQVHWWLD$YHQXH6XLWH$ 9LVWD&DOLIRUQLD
7KH/RV3RVDV2ZQHU/39//&
3DFLILF*3$5H]RQH
1:&RUQHURI/LQGD9LVWD'U /DV3RVDV
6DQ0DUFRV&DOLIRUQLD
31
6' 1RYHPEHU
)LJXUH
%RULQJ/RFDWLRQ
3ODQ
7VD
4DO
7VD
4DO
7VD
3
%3
%
%
%
%
$33(1',;$
(;3/25$725<%25,1*/2*6
$1'
,1),/75$7,21:25.6+((76
7+(/$6326$62:1(5/39//&$'(/$:$5(/,0,7('/,$%,/,7<&203$1<3URMHFW1R 6'
5HYLVHG3UHOLPLQDU\*HRWHFKQLFDO(YDOXDWLRQ 1RYHPEHU 3DFLILF*3$5H]RQH6DQ0DUFRV&DOLIRUQLD 3DJH$
$),(/'7(67,1*$1'6$03/,1*352&('85(6
7KH0RGLILHG6SOLW%DUUHO6DPSOHU
5LQJ
7KH5LQJVDPSOHULVGULYHQLQWRWKHJURXQGLQDFFRUGDQFHZLWK$6707HVW0HWKRG'7KHVDPSOHU ZLWKDQH[WHUQDOGLDPHWHURILQFKHVLVOLQHGZLWKLQFKORQJWKLQEUDVVULQJVZLWKLQVLGHGLDPHWHUVRI DSSUR[LPDWHO\LQFKHV7KHV DPSOHULVW\SLFDOO\GULYHQLQWRWKHJURXQGRULQFKHVZLWKD SRXQGKDPPHUIUHHIDOOLQJIURPDKHLJKWRILQFKHV%ORZFRX QWVDUHUHFRUGHGIRUHYHU\LQFKHVRI SHQHWUDWLRQDVLQGLFDWHGRQWKHORJRIERULQJ7KHVDPSOHVDUH UHPRYHGIURPWKHVDPSOHEDUUHOLQWKH EUDVVULQJVVHDOHGDQGWUDQVSRUWHGWRWKHODERUDWRU\IRUWHVWLQJ
%XON6DPSOHV
/DUJH
7KHVHVDPSOHVDUHQRUPDOO\ODUJHEDJVRIHDUWKPDWHULDOVRYHU SRXQGVLQZHLJKWFROOHFWHGIURPWKH ILHOGE\PHDQVRIKDQGGLJJLQJRUH[SORUDWRU\FXWWLQJV
%XON6DPSOHV
6PDOO
7KHVHDUHSODVWLFEDJVDPSOHVZKLFKDUHQRUPDOO\DLUWLJKWDQGF RQWDLQOHVVWKDQSRXQGVLQZHLJKWRI HDUWKPDWHULDOVFROOHFWHGIURPWKHILHOGE\PHDQVRIKDQGGLJJLQJRUH[SORUDWRU\FXWWLQJV7KHVHVDPSOHV DUHSULPDULO\XVHGIRUGHWHUPLQLQJQDWXUDOPRLVWXUHFRQWHQWDQGFODVVLILFDWLRQLQGLFHV
%²(;&$9$7,21/2*/(*(1'
7KHIROORZLQJDEEUHYLDWLRQVDQGV\PEROVRIWHQDSSHDULQWKHFODVVLILFDWLRQDQGGHVFULSWLRQRIVRLODQGURFN RQWKHORJVRIERULQJVDQGWUHQFKHV
62,/6
86&6 8QLILHG6RLO&ODVVLILFDWLRQ6\VWHP
IF )LQHWRFRDUVH
IP )LQHWRPHGLXP
*(2/2*,&
%
$WWLWXGHV %HGGLQJ
VWULNHGLS
-
$WWLWXGHV -RLQW
VWULNHGLS
&
&RQWDFWOLQH
««« 'DVKHGOLQHGHQRWHV86&6PDWHULDOFKDQJH
6ROLG/LQHGHQRWHVXQLWIRUPDWLRQDOFKDQJH
7KLFNVROLGOLQHGHQRWHVHQGRIERULQJ
$GGLWLRQDOGHQRWDWLRQVDQGV\PEROVDUHSURYLGHGRQWKHORJV
*HR7HN,QF
/2*2)(;3/25$725<%25,1*
%%
5
6
5
6
6PDOO%XON 1R5HFRYHU\ :DWHU7DEOH 352-(&71$0(
3DFLILF6DQ0DUFRV '5,//0(7+2'
&0(+$6 23(5$725
&/,(17
7KH/DV3RVDV2ZQHU/39//& '5,//(5
%DMD([SORUDWLRQ /2**('%<
&'/
/2&$7,21
6HH%RULQJ/RFDLWRQ0DS (/(9$7,21
'$7(
352-(&712
6' +$00(5
OEVLQ 5,*7<3(
&0(
'U\'HQVLW\
SFI
2WKHUV
0$7(5,$/'(6&5,37,21$1'&200(176
'LUW5RDG
6$03/(6
86&66\PERO
%25,1*12
%
/DERUDWRU\7HVWLQJ
'HSWK
IW
6DPSOH7\SH
%ORZVLQ
6DPSOH
1XPEHU
:DWHU&RQWHQW
7HUWLDU\6DQWLDJR)RUPDWLRQ
&OD\H\PHGLXP6$1'6721(SDOH\HOORZPRLVWYHU\GHQVHWUDQVLWLRQLQ VDPSOH
:HDWKHUHG6DQWLDJR&ROOXYLXP
&/$<GDUNEURZQEODFNGU\WUDFHVDQG
&OD\H\PHGLXP6$1'6721(SDOH\HOORZPRLVWYHU\GHQVH &OD\H\ILQH6$1'6721(RUDQJHEURZQDQGSOD\\HOORZPRLVWYHU\GHQVH OLJKWROLYHJUD\FOD\VWRQHLQVKRHPRLVWKDUGEHGGHGR[LGDWLRQ &OD\H\PHGLXP6$1'6721(SDOH\HOORZPRLVWYHU\GHQVH %DFNILOOHGZLWKVRLOFXWWLQJV
+2/(7(50,1$7('$7
)((7
1RJURXQGZDWHUHQFRXQWHUHG
$/ $WWHUEHUJ/LPLWV (, ([SDQV LRQ,QGH[ 6$ 6LHYH$QDO\VLV 59 59DOXH7HVW 65 6XOIDWH5HVLVLWLYLW\7HVW 6+ 6KHDU7HVW &2 &RQVROLGD WLRQWHVW 0' 0D[LPXP'HQVLW\
/(*(1'
6DPSOHW\SH
5LQJ 637 /DUJH%XON
/DEWHVWLQJ
*HR7HN,QF
/2*2)(;3/25$725<%25,1*
%%
5
6
5
6PDOO%XON 1R5HFRYHU\ :DWHU7DEOH 352-(&71$0(
3DFLILF6DQ0DUFRV '5,//0(7+2'
+6$,' 23(5$725
&/,(17
7KH/DV3RVDV2ZQHU/39//& '5,//(5
%DMD([SORUDWLRQ /2**('%<
&'/
/2&$7,21
6HH%RULQJ/RFDLWRQ0DS (/(9$7,21
'$7(
352-(&712
6' +$00(5
OEVLQ 5,*7<3(
&0(
'U\'HQVLW\
SFI
2WKHUV
0$7(5,$/'(6&5,37,21$1'&200(176
9HJDWDWLRQRYHU
6$03/(6
86&66\PERO
%25,1*12
%
/DERUDWRU\7HVWLQJ
'HSWK
IW
6DPSOH7\SH
%ORZVLQ
6DPSOH
1XPEHU
:DWHU&RQWHQW
7HUWLDU\6DQWLDJR)RUPDWLRQ
:HDWKHUHG6DQWLDJR&ROOXYLXP
6LOW\ILQH6$1'OLJKWEURZQGU\ORRVH
&OD\H\PHGLXP6$1'6721(OLJKWJUD\YHU\PRLVWYHU\GHQVHΕILQH &OD\HGPHGLXP6$1'6721(SDOH\HOORZZKLWHYHU\PRVLWPHGLXPGHQVH PRWWOHGRUDQJHR[LGDWLRQ
&OD\H\PHGLXP6$1'OLJKWJUD\YHU\PRLVWYHU\GHQVHΕILQH
&XWWLQJVDUHYHU\ZHWGDUNRUDQJHEURZQILQH
&OD\H\ILQH6$1'6721(PRWWOHGRUDQJHEURZQDQGSDOHZKLWHYHU\PRLVW YHU\GHQVH
%DFNILOOHGZLWKVRLOFXWWLQJV
+2/(7(50,1$7('$7
)((7
6RPHJURXQGZDWHUHQFRXQWHUHGDWIHHW
$/ $WWHUEHUJ/LPLWV (, ([SDQV LRQ,QGH[ 6$ 6LHYH$QDO\VLV 59 59DOXH7HVW 65 6XOIDWH5HVLVLWLYLW\7HVW 6+ 6KHDU7HVW &2 &RQVROLGD WLRQWHVW 0' 0D[LPXP'HQVLW\
/(*(1'
6DPSOHW\SH
5LQJ 637 /DUJH%XON
/DEWHVWLQJ
*HR7HN,QF
/2*2)(;3/25$725<%25,1*
%%
5
6
5
6
6PDOO%XON 1R5HFRYHU\ :DWHU7DEOH 352-(&71$0(
3DFLILF6DQ0DUFRV '5,//0(7+2'
+6$,' 23(5$725
&/,(17
7KH/DV3RVDV2ZQHU/39//& '5,//(5
%DMD([SORUDWLRQ /2**('%<
%50
/2&$7,21
6HH%RULQJ/RFDLWRQ0DS (/(9$7,21
'$7(
352-(&712
6' +$00(5
OEVLQ 5,*7<3(
&0(
'U\'HQVLW\
SFI
2WKHUV
0$7(5,$/'(6&5,37,21$1'&200(176
'LUW5RDG3DWFK6OLJKW9HJDWDWLRQ
6$03/(6
86&66\PERO
%25,1*12
%
/DERUDWRU\7HVWLQJ
'HSWK
IW
6DPSOH7\SH
%ORZVLQ
6DPSOH
1XPEHU
:DWHU&RQWHQW
&OD\H\6$1'6721(WDQ\HOORZPRLVW
7HUWLDU\6DQWLDJR)RUPDWLRQ
&OD\H\6$1'
6LOW\ILQH6$1'6721(R[LGDWLRQOD\HUVWDQGDPS
6LOW\ILQH6$1'6721(RUDQJHEURZQPRLVWYHU\GHQVH
&/$<6721(GDUNEURZQPRLVWYHU\VWLIIIQHFXWVDQG\VDQGVWRQHGDUN EURZQPRLVW
6LOW\PHGLXPFRDUVH6$1'6721(OLJKWJUD\ZHWYHU\GHQVH %DFNILOOHGZLWKVRLOFXWWLQJV
+2/(7(50,1$7('$7
)((7
*URXQGZDWHUHQFRXQWHUHGDWIHHW
$/ $WWHUEHUJ/LPLWV (, ([SDQV LRQ,QGH[ 6$ 6LHYH$QDO\VLV 59 59DOXH7HVW 65 6XOIDWH5HVLVLWLYLW\7HVW 6+ 6KHDU7HVW &2 &RQVROLGD WLRQWHVW 0' 0D[LPXP'HQVLW\
/(*(1'
6DPSOHW\SH
5LQJ 637 /DUJH%XON
/DEWHVWLQJ
*HR7HN,QF
/2*2)(;3/25$725<%25,1*
5
6
5
6
6PDOO%XON 1R5HFRYHU\ :DWHU7DEOH 352-(&71$0(
3DFLILF6DQ0DUFRV '5,//0(7+2'
+6$,' 23(5$725
&/,(17
7KH/DV3RVDV2ZQHU/39//& '5,//(5
%DMD([SORUDWLRQ /2**('%<
&'/
/2&$7,21
6HH%RULQJ/RFDLWRQ0DS (/(9$7,21
'$7(
352-(&712
6' +$00(5
OEVLQ 5,*7<3(
&0(
'U\'HQVLW\
SFI
2WKHUV
0$7(5,$/'(6&5,37,21$1'&200(176
*UDVVODQG2YHU
6$03/(6
86&66\PERO
%25,1*12
%
/DERUDWRU\7HVWLQJ
'HSWK
IW
6DPSOH7\SH
%ORZVLQ
6DPSOH
1XPEHU
:DWHU&RQWHQW
7HUWLDU\6DQWLDJR)RUPDWLRQ
6LOW\FRDUVH6$1'6721(LQWHUEHGGHGOLJKWJUD\DQGRUDQJHEURZQPRLVW $OOXYLXP
4DO
6LOW\ILQH6$1'OLJKWEURZQGU\ORRVH
&/$<6721(PHGLXPJUD\IUDFWXUHGZHOOKHDOHGZLWKRUDQJHR[LGL]HGILQH YHU\GHQVHΕILQHV
0HGLXPFRDUVH6$1'6721(ULFKO\R[LGL]HGRUDQJHEURZQZHWYHU\GHQVH VDQG
ODPLQLDWHGVLOW\DQGFOD\H\VDQGVWRQHΕILQHPRLVW &/$<6721(GDUNJUD\PRLVWKDUG
3HUFKHGJURXQGZDWHUHQFRXQWHUHGDWIHHW
%DFNILOOHGZLWKVRLOFXWWLQJV
6OLW\ILQH6$1'6721(GDUNJUD\PRLVWILQHGHFRPSRVHGRUJDQLF PDWWHU
+2/(7(50,1$7('$7
)((7
$/ $WWHUEHUJ/LPLWV (, ([SDQV LRQ,QGH[ 6$ 6LHYH$QDO\VLV 59 59DOXH7HVW 65 6XOIDWH5HVLVLWLYLW\7HVW 6+ 6KHDU7HVW &2 &RQVROLGD WLRQWHVW 0' 0D[LPXP'HQVLW\
/(*(1'
6DPSOHW\SH
5LQJ 637 /DUJH%XON
/DEWHVWLQJ
-RE1R
6'
'DWH
$IWHU7HVW
5HDGLQJ
1R 7LPH
7LPH
,QWHUYDO
0LQ
7RWDO
'HSWKRI
+ROH
,QFKHV
,QLWLDO
:DWHU
/HYHO
,QFKHV
)LQDO
:DWHU
/HYHO
,QFKHV
¨,Q:DWHU
/HYHO
,QFKHV
5DWH
PLQXWHV
SHULQFK
&RPPHQWV
3(5&2/$7,21'$7$6+((7
3URMHFW
3DFLILF6DQ0DUFRV 7HVW+ROH1R
3%7HVWHG%\ 05%
'HSWKRI+ROH$V'ULOOHG
%HIRUH7HVW
BBBBBBBBBBBBBBBBBBBBBBBBB
PLQXWHV
LQFKHV
LQFKHV
LQFKHV
LQFKHV
(TXDWLRQ ,
W
LQFKHV
LQFKHV
LQFKHV
+DYJ
+
2+)
LQFKHV
,W ,QFKHVSHU+RXU
7RWDO7HVW+ROH'HSWK'7
ȴ+
U
ȴW
U+DYJ
+2 '7'2
+) '7')
ȴ+ ȴ' +2+)
)LQDO'HSWKWR:DWHU')
7HVW+ROH5DGLXVU
,QLWLDO'HSWKWR:DWHU'
2
7LPH,QWHUYDOȴW
&OLHQW
7KH/DV3RVDV2ZQHU/39//&
3URMHFW
3DFLILF
3URMHFW1R
6'
'DWH
%RULQJ1R 3
,QILOWUDWLRQ5DWH
3RUFKHW0HWKRG
-RE1R
6'
'DWH
$IWHU7HVW
5HDGLQJ
1R 7LPH
7LPH
,QWHUYDO
0LQ
7RWDO
'HSWKRI
+ROH
,QFKHV
,QLWLDO
:DWHU
/HYHO
,QFKHV
)LQDO
:DWHU
/HYHO
,QFKHV
¨,Q:DWHU
/HYHO
,QFKHV
5DWH
PLQXWHV
SHULQFK
&RPPHQWV
3(5&2/$7,21'$7$6+((7
3URMHFW
3DFLILF6DQ0DUFRV 7HVW+ROH1R
3%7HVWHG%\ 05%
'HSWKRI+ROH$V'ULOOHG
%HIRUH7HVW
BBBBBBBBBBBBBBBBBBBBBBBB
PLQXWHV
LQFKHV
LQFKHV
LQFKHV
LQFKHV
(TXDWLRQ ,
W
LQFKHV
LQFKHV
LQFKHV
+DYJ
+
2+)
LQFKHV
,W ,QFKHVSHU+RXU
7RWDO7HVW+ROH'HSWK'7
ȴ+
U
ȴW
U+DYJ
+2 '7'2
+) '7')
ȴ+ ȴ' +2+)
)LQDO'HSWKWR:DWHU')
7HVW+ROH5DGLXVU
,QLWLDO'HSWKWR:DWHU'
2
7LPH,QWHUYDOȴW
&OLHQW
7KH/DV3RVDV2ZQHU/39//&
3URMHFW
3DFLILF
3URMHFW1R
6'
'DWH
%RULQJ1R 3
,QILOWUDWLRQ5DWH
3RUFKHW0HWKRG
$33(1',;%
5(68/762)/$%25$725<7(67,1*
7+(/$6326$62:1(5/39//&$'(/$:$5(/,0,7('/,$%,/,7<&203$1< 3URMHFW1R 6'
5HYLVHG3UHOLPLQDU\*HRWHFKQLFDO(YDOXDWLRQ 1RYHPEHU 3DFLILF*3$5H]RQH6DQ0DUFRV&DOLIRUQLD 3DJH%
6800$5<2)/$%25$725<7(67,1*
,GHQWLILFDWLRQDQG&ODVVLILFDWLRQ
6RLOV ZHUH LGHQWLILHG YLVXDOO\ LQ JHQHUDO DFFRUGDQFH WR WKH VWDQ G D U G S U D F W L F H I R U G H V F U L S W L R Q D Q G LGHQWLILFDWLRQRIVRLOV
$670'
7KHVRLOLGHQWLILFDWLRQVDQGFODVVLILFDWLRQVDUHVKRZQRQWKHORJVRI H[SORUDWRU\ERULQJVLQ$SSHQGL[$
([SDQVLRQ,QGH[
([SDQVLRQ,QGH[WHVWLQJZDVSHUIRUPHGRQRQHVRLOVDPSOH7HVWLQJZDVSHUIRUPHGLQJHQHUDODFFRUGDQFH ZLWK$6707HVW0HWKRG'
7KHUHVXOWVRIWKHWHVWLQJDUHSURYLGHGEHORZ
%RULQJ1R 'HSWK
IW
6RLO7\SH ([SDQVLRQ,QGH[ &ODVVLILFDWLRQ
% 'DUN%URZQ%ODFN
&OD\ 0HGLXP
0RLVWXUH'HQVLW\5HODWLRQVKLS
/DERUDWRU\WHVWLQJZDVSHUIRUPHGRQRQHVDPSOHFROOHFWHGGXULQJ WKHVXEVXUIDFHH[SORUDWLRQ7KH ODERUDWRU\PD[LPXPGU\GHQVLW\DQGRSWLPXPPRLVWXUHFRQWHQWIRU WKHVRLOW\SHZDVGHWHUPLQHGLQ JHQHUDODFFRUGDQFHZLWKWHVWPHW KRG$6707HVW3URFHGXUH' 7KHUHVXOWVRIWKHWHVWLQJDUH SURYLGHGEHORZ
%RULQJ1R 'HSWK
IW
'HVFULSWLRQ 0D[LPXP'U\
'HQVLW\
SFI
2SWLPXP
0RLVWXUH&RQWHQW
% 'DUN%URZQ%ODFN&OD \
$33(1',;&
*(1(5$/($57+:25.*5$',1**8,'(/,1(6
*(1(5$/*5$',1**8,'(/,1(6 $33(1',;&
3DJH
*(1(5$/*5$',1**8,'(/,1(6
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
*HQHUDO
*UDGLQJVKRXOGEHSHUIRUPHGWRDWOHDVWWKHPLQLPXPUHTXLUHPHQW VRIJRYHUQLQJDJHQFLHV&KDSWHUV DQGRIWKH&DOLIRUQLD%XLOGLQJ&RGH&%&
DQGWKHJXLGHOLQHVSUHVHQWHGEHORZ
3UHFRQVWUXFWLRQ0HHWLQJ
$SUHFRQVWUXFWLRQPHHWLQJVKRXOGEHKHOGSULRUWRVLWHHDUWKZRU N$Q\TXHVWLRQVWKHFRQWUDFWRUKDV UHJDUGLQJRXUUHFRPPHQGDWLRQVJH QHUDOVLWHFRQGLWLRQVDSSDUHQ WGLVFUHSDQFLHVEHWZHHQUHSRUWHGDQG DFWXDOFRQGLWLRQVDQGRUGLIIHUHQFHVLQSURFHGXUHVWKHFRQWUDFW RU LQWHQGV WRXV HVKRXOGEHEURXJKWXS DW WKDW PHHWLQJ 7KH FRQWUDFWRU
LQFOXGLQJ WKH PDLQ RQVLWH UHSUHVHQWDWLYH
VKRXOG UHYLHZ RXU UHSRUW
DQGWKHVHJXLGHOLQHVLQDGYDQFHRIWKHPHHWLQJ$Q\FRPPHQWVWKHFRQWUDFWRUPD\KDYHUHJDUGLQJWKHVH JXLGHOLQHVVKRXOGEHEURXJKWXSDWWKDWPHHWLQJ
*UDGLQJ2EVHUYDWLRQDQG7HVWLQJ
2EVHUYDWLRQ RI WKH ILOO SODFHPHQW VKRXOG EH SURYLGHG E\ RXU UHSUHVHQWDWLYH GXULQJ JUDGLQJ 9HUEDOFRPPXQLFDWLRQGXULQJWKHFRXUVHRIHDFKGD\ZLOOEHXVHG WR LQIRU P WK HFRQWU DFW RU RI WHVWUHVXOWV7KHFRQWUDFWRUVKRXOGUHFHLYHDFRS\RIWKH'DL O\)LHOG5HSRUWLQGLFDWLQJUHVXOWV RIILHOGGHQVLW\WHVWVWKDWGD\,IRXUUHSUHVHQWDWLYHGRHVQR WSURYLGHWKHFRQWUDFWRUZLWKWKHVH UHSRUWVRXURIILFHVKRXOGEHQRWLILHG
7HVWLQJDQGREVHUYDWLRQSURFHGXU HVDUHE\WKHLUQDWXUHVSHFLI LFWRWKHZRUNRUDUHDREVHUYHG DQG ORFDWLRQ RI WKH WHVWV WDNHQ YDULDELOLW\ PD\ RFFXU LQ RWKHUO R F D W L R Q V 7 K H F R Q W U D F W R U L V UHVSRQVLEOHIRUWKHXQLIRUPLW\RIWKHJUDGLQJRSHUDWLRQV RXUR EVHUYDWLRQVDQGWHVWUHVXOWVDUH
LQWHQGHG WR HYDOXDWH WKH FRQWUDFWRU·V RYHUDOO OHYHO RI HIIRUWVGXULQJ JUDGLQJ 7KH FRQWUDFWRU·V SHUVRQQHO DUH WKH RQO\ LQGLYLGXDOV SDUWLFLSDWLQJ LQ DOO DVSHFWRI VLWH ZRUN &RPSDFWLRQ WHVWLQJ DQGREVHUYDWLRQVKRXOGQRWEHFRQVLGHUHGDVUHOLHYLQJWKHFRQWUDFWRU·VUHVSRQVLELOLW\WRSURSHUO\ FRPSDFWWKHILOO
&OHDQRXWVSURFHVVHGJURXQGWRUHFHLYHILOONH\H[FDYDWLRQVD QGVXEGUDLQVVKRXOGEHREVHUYHG E\RXUUHSUHVHQWDWLYHSULRUWRSODFLQJDQ\ILOO,WZLOOEHWK HFRQWUDFWRU VUHVSRQVLELOLW\WRQRWLI\
RXUUHSUHVHQWDWLYHRURIILFHZKHQVXFKDUHDVDUHUHDG\IRUREVHUYDWLRQ 'HQVLW\WHVWVPD\ EHPDGH RQWKH VXUIDFH PDWHULDOWR UHFHLYH ILOO DV FRQVLGHUHG ZDUUDQWHG E\ WKLVILUP
,QJHQHUDOGHQVLW\WHVWVZRXOGEHPDGHDWPD[LPXPLQWHUYDOVRI WZRIHHWRIILOOKHLJKWRUHYHU\ FXELF\DUGVRIILOOSODFHG&ULWHULDZLOOYDU\GHSHQGLQJRQVRLOFRQGLWLRQVDQGVL]HRIWKHILOO 0RUHIUHTXHQWWHVWLQJPD\EHSHUIRUPHG,QDQ\FDVHDQDGHTXD WHQXPEHURIILHOGGHQVLW\WHVWV V K R X O G E H P D G H W R H Y D O X D W H W K H UHTXLUHG FRPSDFWLRQ DQG PRLVWXUHF R Q W H Q W L V J H Q H U D O O \ E H L Q J REWDLQHG
*(1(5$/*5$',1**8,'(/,1(6 $33(1',;&
3DJH
/DERUDWRU\WHVWLQJWRVXSSRUWILHOGWHVWSURFHGXUHVZLOOEHSHU IRUPHGDVFRQVLGHUHGZDUUDQWHG EDVHGRQFRQGLWLRQVHQFRXQWHUHG
HJFKDQJHRIPDWHULDOVRXUFH VW\SHVHWF
(YHU\HIIRUWZLOO
EHPDGHWRSURFHVVVDPSOHVLQWKHODERUDWRU\DVTXLFNO\DVSRVVLEOHDQGLQSURJUHVVFRQVWUXFWLRQ S U R M H F W V D U H R X U I L U V W S U L R U L W \ + R Z H Y H U O D E R U D W R U \ Z R U N O R D G VP D \ F D X V H L Q G H O D \ V D Q G V R P H V R L O V P D \ U H T X L U H D PLQLPXP RI WR KRXUV WR FRPSOHWH WHVW SURFHGXUHV :KHQHYHUSRVVLEOHRXUUHSUHVHQWDWLYH
V
VKRXOGEHLQIRUPHGLQ DGYDQFHRIRSHUDWLRQDOFKDQJHV WKDWPLJKWUHVXOWLQGLIIHUHQWVRXUFHDUHDVIRUPDWHULDOV 3URFHGXUHVIRUWHVWLQJRIILOOVORSHVDUHDVIROORZV
D
'HQVLW\ WHVWV VKRXOG EH WDNHQ SHULRGLFDOO\ GXULQJ JUDGLQJ RQ WKH IODW VXUIDFH RI WKH ILOO WKUHHWRILYHIHHWKRUL]RQWDOO\IURPWKHIDFHRIWKHVORSH E
, I D P H W K R G R W K H U W K D Q R Y H U E X L O G L Q J D Q G F X W W L Q J E D F N W R W K H F RPSDFWHG FRUH LV WR EH HPSOR\HGVORSHFRPSDFWLRQWHVWLQJGXULQJFRQVWUXFWLRQVKRXOGLQFOXGHWHVWLQJWKHRXWHU VL[ LQFKHV WR WKUHH IHHW LQ WKH VORSH IDFH WR GHWHUPLQH LI WKHUHTXLUHG FRPSDFWLRQ LV EHLQJDFKLHYHG
) L Q L V K J U D G H W H V W L Q J R I V O R S H V D Q G S D G V X U I D F H V V K R X O G E H S H U I RUPHG DIWHU FRQVWUXFWLRQ LV FRPSOHWH
6LWH&OHDULQJ
$OOYHJHWDWLRQDQGRWKHUGHOHWHULRXVPDWHULDOVVKRXOGEHUHPR YHGIURPWKHVLWH,IPDWHULDOLV QRW LPPHGLDWHO\ UHPRYHG IURP WKH VLWH LW VKRXOG EH VWRFNSLOHG LQ D GHVLJQDWHG DUHD V
ZHOO
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
)ROORZLQJ VLWH FOHDULQJ DOO VXUILFLDO GHSRVLWV RI DOOXYLXP DQGF R O O X Y L X P D V Z H O O D V Z H D W K H U H G R U FUHHSHIIHFWHGEHGURFNVKRXOGE HUHPRYHGXQOHVVRWKHUZLVHVSHFLILFDOO\LQGLFDWHGLQWKHWH[WRI WKLVUHSRUW
,QVRPHFDVHVUHPRYDOPD\EHUHFRPPHQGHGWRDVSHFLILHGGHSWK HJIODWVLWHVZKHUHSDUWLDO
DOOXYLDO UHPRYDOV PD\ EH VXIILFLHQW
7KH FRQWUDFWRU VKRXOG QRW H[FHHG WKHVH GHSWKV XQOHVV GLUHFWHGRWKHUZLVHE\RXUUHSUHVHQWDWLYH
*URXQGZDWHU H[LVWLQJ LQ DOOXYLDO DUHDV PD\ PDNH H[FDYDWLRQ GLIILFXOW 'HHSHU UHPRYDOV WKDQ LQGLFDWHGLQWKHWH[WRIWKHUHSRUWPD\EHQHFHVVDU\GXHWRVDWXUDWLRQGXULQJZLQWHUPRQWKV 6XEVHTXHQW WR UHPRYDOV WKH QDWXUDO JURXQG VKRXOG EH SURFHVVHG W R D G H S W K R I V L [ L Q F K H V PRLVWHQHGWRQHDURSWLPXPPRLVWXUHFRQGLWLRQVDQGFRPSDFWHGWRILOOVWDQGDUGV ([SORUDWRU\EDFNKRHRUGR]HUWUHQFKHVVWLOOUHPDLQLQJDIWHUVL WHUHPRYDOVKRXOGEHH[FDYDWHG DQGILOOHGZLWKFRPSDFWHGILOOLIWKH\FDQEHORFDWHG )LOO3ODFHPHQW
8QOHVVRWKHUZLVHLQGLFDWHGDOOVLWHVRLODQGEHGURFNPD\EHUH XVHGIRUFRPSDFWHGILOO KRZHYHU
VRPHVSHFLDOSURFHVVLQJRUKDQGOLQJPD\EHUHTXLUHG
VHHWH[WRIUHSRUW
*(1(5$/*5$',1**8,'(/,1(6 $33(1',;&
3DJH
0DWHULDO XVHG LQ WKH FRPSDFWLQJ SURFHVV VKRXOG EH HYHQO\ VSUHDG PRLVWXUH FRQGLWLRQHG S U R F H V V H G D Q G F R P S D F W H G L Q W K L Q O L I W V V L [
W R H L J K W
L Q FKHV LQ FRPSDFWHG WKLFNQHVV WR
REWDLQDXQLIRUPO\GHQVHOD\HU7KHILOOVKRXOGEHSODFHGDQG FRPSDFWHGRQDQHDUO\KRUL]RQWDO SODQHXQOHVVRWKHUZLVHIRXQGDFFHSWDEOHE\RXUUHSUHVHQWDWLYH ,I WKH PRLVWXUH FRQWHQW RU UHODWLYH GHQVLW\ YDULHV IURP WKDW UHFRPPHQGHG E\ WKLV ILUP WKH FRQWUDFWRUVKRXOGUHZRUNWKHILOOXQWLOLWLVLQDFFRUGDQFHZLWKWKHIROORZLQJ
D
0RLVWXUHFRQWHQWRIWKHILOOVKRXOGEHDWRUDERYHRSWLPXPPRLV WXUH0RLVWXUHVKRXOG EH HYHQO\ GLVWULEXWHG ZLWKRXW ZHW DQG GU\ SRFNHWV 3UHZDWHULQJ R I F X W R U U H P R Y D O DUHDVVKRXOGEHFRQVLGHUHGLQDGGLWLRQWRZDWHULQJGXULQJILOO SODFHPHQWSDUWLFXODUO\LQ FOD\RUGU\VXUILFLDO VRLOV 7KHDELOLW\RIWKHFRQWUDFWRUWR REWDLQWKH SURSHU PRLVWXUH FRQWHQWZLOOFRQWUROSURGXFWLRQUDWHV
E
(DFK VL[LQFK OD\HU VKRXOG EH FRPSDFWHG WR DW OHDVW SHUFHQWR I W K H P D [ L P X P G U \
GHQVLW\LQFRPSOLDQFHZLWKWKHWHVWLQJPHWKRGVSHFLILHGE\WKH FRQWUROOLQJJRYHUQPHQWDO DJHQF\,QPRVWFDVHVWKHWHVWLQJPHWKRGLV$6707HVW'HVLJQDWLRQ' 5RFNIUDJPHQWVOHVVWKDQHLJKWLQFKHVLQGLDPHWHUPD\EHXWLOL]HGLQWKHILOOSURYLGHG
D
7KH\DUHQRWSODFHGLQFRQFHQWUDWHGSRFNHWV
E
7KHUHLVDVXIILFLHQWSHUFHQWDJHRIILQHJUDLQHGPDWHULDOWRVXUURXQGWKHURFNV
F
7KHGLVWULEXWLRQRIWKHURFNVLVREVHUYHGE\DQGDFFHSWDEOHWRRXUUHSUHVHQWDWLYH 5RFNV H[FHHGLQJ HLJKW
LQFKHV LQ GLDPHWHU VKRXOG EH WDNHQ RII VLWH EURNHQ LQWR VPDOOHU IUDJPHQWV RU SODFHG LQ DFFRUGDQFH ZLWK UHFRPPHQGDWLRQV RI WKLV I L U P L Q D U H D V G H V L J Q D W H G VXLWDEOHIRUURFNGLVSRVDO2QSURMHFWVZKHUHVLJQLILFDQWODUJ HTXDQWLWLHVRIRYHUVL]HGPDWHULDOV DUH DQWLFLSDWHG DOWHUQDWH JXLGH OLQHV IRU SODFHPHQW PD\ EH LQFO XGHG ,I VLJQLILFDQW RYHUVL]H PDWHULDOVDUHHQFRXQWHUHGGXULQJFRQVWUXFWLRQWKHVHJXLGHOLQHVVKRXOGEHUHTXHVWHG ,QFOD\VRLOGU\RUODUJHFKXQNVRUEORFNVDUHFRPPRQ,ILQ H[FHVVRIHLJKW
LQFKHVPLQLPXP
GLPHQVLRQ WKHQ WKH\ DUH FRQVLGHUHG DV RYHUVL]HG 6KHHSVIRRW FRPSDFWRUV RU RWKHU VXLWDEOH PHWKRGVVKRXOGEHXVHGWREUHDNXSEORFNV:KHQGU\WKH\VKRXOGEHPRLVWXUHFRQGLWLRQHGWR SURYLGHDXQLIRUPFRQGLWLRQZLWKWKHVXUURXQGLQJILOO 6ORSH&RQVWUXFWLRQ
7KHFRQWUDFWRUVKRXOGREWDLQDPLQLPXPUHODWLYHFRPSDFWLRQRI SHUFHQWRXWWRWKHILQLVKHG
VORSHIDFHRIILOOVORSHV7KLVPD\EHDFKLHYHGE\HLWKHURYHU EXLOGLQJWKHVORSHDQGFXWWLQJEDFN WRWKHFRPSDFWHGFRUHRUE\GLUHFWFRPSDFWLRQRIWKHVORSHIDFHZLWKVXLWDEOHHTXLSPHQW 6ORSHV WULPPHG WR WKH FRPSDFWHG FRUH VKRXOG EH RYHUEXLOW E\ DW OHDVW WKUHH
IHHW ZLWK
F R P S D F W L R Q H I I R U W V R X W W R W K H H G J H R I W K H I D O V H V O R S H ) D L O X U HW R S U R S H U O \ F R P S D F W W K H R X W H U HGJH UHVXOWV LQ WULPPLQJ QRW H[SRVLQJ WKH FRPSDFWHG FRUH DQG DGGLWLRQDO FRPSDFWLRQ DIWHU WULPPLQJPD\EHQHFHVVDU\
,I ILOO VORSHV DUHEXLOWDW JUDGH XVLQJ GLUHFW FRPSDFWLRQ PHWKRGV WKHQWKH VORSH FRQVWUXFWLRQ VKRXOG EH SHUIRUPHG VR WKDW D FRQVWDQW JUDGLHQW LV PDLQWDLQHG WKURXJKRXW FRQVWUXFWLRQ 6RLO VKRXOGQRWEHVSLOOHGRYHUWKHVORSHIDFHQRUVKRXOGVORSHVE HSXVKHGRXWWRREWDLQJUDGHV &RPSDFWLRQ HTXLSPHQW VKRXOG FRPSDFW HDFK OLIW DORQJ WKH LPPHGLDWH WRS RI VORSH 6ORSHV V K R X O G E H E D F N U R O O H G R U R W K H U Z L V H F R P S D F W H G D W D S S U R [ L P D W H O \ HY H U \ I H H W Y H U W L F D O O \ D V W K H VORSHLVEXLOW
&RUQHUVDQGEHQGVLQVORSHVVKRXOGKDYHVSHFLDODWWHQWLRQGXULQ JFRQVWUXFWLRQDVWKHVHDUHWKH PRVWGLIILFXOWDUHDVWRREWDLQSURSHUFRPSDFWLRQ
&XWVORSHVVKRXOGEHFXWWRWKHILQLVKHGVXUIDFH([FHVVLYHXQ GHUFXWWLQJDQGVPRRWKLQJRIWKH IDFHZLWKILOOPD\QHFHVVLWDWHVWDELOL]DWLRQ
*(1(5$/*5$',1**8,'(/,1(6 $33(1',;&
3DJH
87,/,7<75(1&+&216758&7,21$1'%$&.),//
8WLOLW\ WUHQFK H[FDYDWLRQ DQG EDFNILOO LV WKH FRQWUDFWRUV UHVSRQVLELOLW\ 7KH JHRWHFKQLFDO FRQVXOWDQW W\SLFDOO\SURYLGHVSHULRGLFREVHUYDWLRQDQGWHVWLQJRIWKHVHRSHUDWLRQV:KLOHHIIRUWVDUHPDGHWRPDNH VXIILFLHQWREVHUYDWLRQVDQGWHVWVWRYHULI\WKDWWKHFRQWUDFWRUV·PHWKRGVDQGSURFHGXUHVDUHDGHTXDWHWR DFKLHYH SURSHU FRPSDFWLRQ LW LV W\SLFDOO\ LPSUDFWLFDO WR REVHUYH DOO EDFNILOO SURFHGXUHV $V VXFK LW LV FULWLFDOWKDWWKHFRQWUDFWRUXVHFRQVLVWHQWEDFNILOOSURFHGXUHV
&RPSDFWLRQ PHWKRGV YDU\ IRU WUHQ FK FRPSDFWLRQ DQG H[SHULHQFH LQ G L F D W H V P D Q \ P H W K R G V F D Q E H VXFFHVVIXO+RZHYHUSURFHGXUHV WKDW´ZRUNHGµRQSUHYLRXVSURM HFWVPD\RUPD\QRWSURYHHIIHFWLYH RQ D JLYHQ VLWH 7KH FRQWUDFWRU
V
VKRXOG RXWOLQH WKH SURFHGXUHV SURSRVHG VR WKDW ZH PD\ GLVFXVV WKHPSULRUW RF RQV WU XFWL R Q:H ZLOO RIIHU FRP PHQ WV EDV HG R QRXU NQRZOHGJHRIVLWHFRQGLWLRQVDQG H[SHULHQFH
8WLOLW\WUHQFKEDFNILOOLQVORSHVVWUXFWXUDODUHDVLQVWUHHWV DQG EHQHDW KIODW ZR U NRU KDU GV FDSH VKRXOG EH EURXJKW WR DW OHDVW RSWLPXP PRLVWXUH DQG FRPSDFWHGWR DW OHDVW SHUFHQWRIWKH
ODERUDWRU\VWDQGDUG6RLOVKRXOGEHPRLVWXUHFRQGLWLRQHGSULRUWRSODFLQJLQWKHWUHQFK )ORRGLQJDQGMHWWLQJDUHQRWW\SLFDOO\UHFRPPHQGHGRUDFFHSWDEO HIRUQDWLYHVRLOV)ORRGLQJRU MHWWLQJ PD\ EH XVHG ZLWK VHOHFW VDQG KDYLQJ D 6DQG (TXLYDOHQW 6 (
R I R U K L J K H U 7 K L V L V
W\SLFDOO\OLPLWHGWRWKHIROORZLQJXVHV
D
VKDOORZ
LQFKHV
XQGHUVODELQWHULRUWUHQFKHVDQG
E
DVEHGGLQJLQSLSH]RQH
7 K H Z D W H U V K R X O G E H D O O R Z H G W R G L V V L S D W H S U L R U W R S R X U L Q J V O D EV RU FRPSOHWLQJ WUHQFK FRPSDFWLRQ
&DUHVKRXOGEHWDNHQQRWWRSODFHVRLOVDWKLJKPRLVWXUHFRQWHQ WZLWKLQWKHXSSHUWKUHHIHHWRI WKH WUHQFK EDFNILOO LQ VWUHHW DUHDV DV RYHUO\ ZHW VRLOV PD\ LP SDFW VXEJUDGH SUHSDUDWLRQ 0RLVWXUHPD\EHUHGXFHGWREHORZRSWLPXPPRLVWXUHLQDUHDVW REHSDYHGZLWKLQWKHXSSHU WKUHHIHHWEHORZVXEJUDGH
6DQG EDFNILOO VKRXOG QRW EH DOORZHG LQ H[WHULRU WUHQFKHV DGMDFH QW WR DQG ZLWKLQ DQ DUHD H[WHQGLQJEHORZD
SURMHFWLRQIURPWKHRXWVLGHERWWRPHGJHR IDIRRWLQJXQOHVVLWLVVLPLODU WRWKHVXUURXQGLQJVRLO
7UHQFKFRPSDFWLRQWHVWLQJLVJHQHUDOO\DWWKHGLVFUHWLRQRIWKH JHRWHFKQLFDOFRQVXOWDQW7HVWLQJ IUHTXHQF\ZLOOEHEDVHGRQWUHQFKGHSWKDQGWKHFRQWUDFWRUVSUR FHGXUHV$SURELQJURGZRXOG EH XVHGWR DVVHVV WKH FRQVLVWHQF\ RI FRPSDFWLRQ EHWZHHQ WHVWHGDUHDV DQGXQWHVWHG DUHDV ,I ]RQHV DUH IRXQG WKDW DUHFRQVLGHUHG OHVV FRPSDFW WKDQ RWKHU DUHDV WKLV ZRXOG EH EURXJKWWR WKHFRQWUDFWRUVDWWHQWLRQ
-2%6$)(7<
*HQHUDO
3HUVRQQHOVDIHW\LVDSULPDU\FRQFHUQRQDOOMREVLWHV7KHIROORZLQJVXPPDULHVDUHVDIHW\FRQVLGHUDWLRQV IRUXVHE\DOORXUHPSOR\HHVRQPXOWLHPSOR\HUFRQVWUXFWLRQVLW HV2QJURXQGSHUVRQQHODUHDWKLJKHVW U L V N R I L Q M X U \ D Q G S R V V L E O H I D W D O L W \ R Q J U D G L Q J F R Q V W U X F W L R Q S URMHFWV 7KH FRPSDQ\ UHFRJQL]HV WKDW FRQVWUXFWLRQ DFWLYLWLHV ZLOO YDU\ RQ HDFK VLWH DQG WKDW MRE VLWH VDIHW\ LV WKH FRQWUDFWRU V UHVSRQVLELOLW\
+RZHYHULWLVLPSHUDWLYHWKDWDOOSHUVRQQHOEHVDIHW\FRQVFLRXVWRDYRLGDFFLGHQWVDQGSRWHQWLDOLQMXU\
*(1(5$/*5$',1**8,'(/,1(6 $33(1',;&
3DJH
, Q D Q H I I R U W W R P L Q L P L ] H U L V N V D V V R F L D W H G Z L W K J H R W H F K Q L F D O W H VWLQJ DQG REVHUYDWLRQ WKH IROORZLQJ SUHFDXWLRQV DUH WR EH LPSOHPHQWHG IRU WKH VDIHW\ RI RXU ILHOG SHUVRQQHO RQ JUDGLQJ DQG FRQVWUXFWLRQ SURMHFWV
6DIHW\0HHWLQJV
2XUILHOGSHUVR QQHODUHGLUHFWHGWRDWWHQGWKH FRQWUDFWRU VUHJXODUO\VFKHGXOHG
VDIHW\PHHWLQJV
6DIHW\9HVWV
6DIHW\YHVWVDUHSURYLGHGIRUDQGDUHWREHZRUQE\RXUSHUVRQQHOZKLOHRQWKHMRE VLWH
6DIHW\)ODJV
6DIHW\IODJVDUHSURYLGHGWRRXUILHOGWHFKQLFLDQ V
RQHLVWREHDIIL[HGWRWKHYHKLFOH
ZKHQRQVLWHWKHRWKHULVWREHSODFHGDWRSWKHVSRLOSLOHRQDOOWHVWSLWV ,QWKHHYHQWWKDWWKHFRQWUDFWRU
VUHSUHVHQWDWLYHREVHUYHVDQ\RIRXUSHUVRQQHOQRWIROORZLQJWKHDERYH ZHUHTXHVWWKDWLWEHEURXJKWWRWKHDWWHQWLRQRIRXURIILFH 7HVW3LWV/RFDWLRQ2ULHQWDWLRQDQG&OHDUDQFH
7KH WHFKQLFLDQ LV UHVSRQVLEOH IRU VHOHFWLQJ WHVW SLW ORFDWLRQV 7KH SULPDU\ FRQFHUQLV WKH WHFKQLFLDQ V
VDIHW\+RZHYHULWLVQHFHVVDU\WRWDNHVXIILFLHQWWHVWVDWY DU LRXV O RFDWLRQV W RREWDLQ DU HSU HV HQWDWLYH VDPSOLQJRIWKHILOO$VVXFKHIIRUWVZLOOEHPDGHWRFRRUGLQ DWHORFDWLRQVZLWKWKHJUDGLQJFRQWUDFWRUV DXWKRUL]HG UHSUHVHQWDWLYHV
HJ GXPS PDQ RSHUDWRU VXSHUYLVRU JUDGH FKHFNHU HWF DQG WR VHOHFW
ORFDWLRQV IROORZLQJ RU EHKLQG WKH HVWDEOLVKHG WUDIILF SDWWHUQSUHIHUDEO\ RXWVLGHRI FXUUHQW WUDIILF 7KH FRQWUDFWRUV DXWKRUL]HG UHSUHVHQWDWLYH VKRXOG GLUHFW H[FDYDWLRQR I W K H S L W D Q G V D I H W \ G X U L Q J W K H W H V W SHULRG$JDLQVDIHW\LVWKHSDUDPRXQWFRQFHUQ
7HVW SLWV VKRXOG EH H[FDYDWHG VR WKDW WKH VSRLO SLOH LV SODFHG D Z D \ I U R P R Q F R P L Q J W U D I I L F 7 K H
WHFKQLFLDQ
VYHKLFOHLVWREHSODFHGQH[WWRWKHWHVWSLWRSSRVLWHWKHVSRLOSLOH7KLVQHFHVVLWDWHVWKDWWKH ILOO EH PDLQWDLQHG LQ D GULYDEOH FRQGLWLRQ $OWHUQDWLYHO\ WKH FRQWUDFWRU PD\ RSW WR SDUN D SLHFH RI HTXLSPHQWLQIURQWRIWHVWSLWVSDUWLFXODUO\LQVPDOOILOODUHDVRUWKRVHZLWKOLPLWHGDFFHVV
$ ]RQH RI QRQHQFURDFKPHQW VKRXOG EH HVWDEOLVKHG IRU DOO WHVW SLWV VHH GLDJUDP EHORZ
1R JUDGLQJ
HTXLSPHQWVKRXOGHQWHUWKLV]RQHGXULQJWKHWHVWSURFHGXUH7K H]RQHVKRXOGH[WHQGRXWZDUGWRWKH VLGHVDSSUR[LPDWHO\IHHWIURP WKHFHQWHURIWKHWHVWSLWDQG IHHWLQWKHGLUHFWLRQRIWUDIILFIORZ 7 K L V ] R Q H L V H V W D E O L V K H G E R W K I R U V D I H W \ D Q G W R D Y R L G H [ F H V V L Y H JURXQG YLEUDWLRQ ZKLFK W\SLFDOO\ GHFUHDVHVWHVWUHVXOWV
*(1(5$/*5$',1**8,'(/,1(6 $33(1',;&
3DJH
IW=RQHRI
1RQ(QFURDFKPHQW
IW=RQHRI
1RQ(QFURDFKPHQW
7UDIILF'LUHFWLRQ
9HKLFOH
SDUNHGKHUH 7HVW3LW 6SRLO
SLOH
6SRLO
SLOH
7HVW3LW
6,'(9,(:
3/$1 9,(:
7(673,76$)(7<3/$1
IW=RQHRI
1RQ(QFURDFKPHQW
6ORSH7HVWV
:KHQ WDNLQJ VORSH WHVWV WKH WHFKQLFLDQ VKRXOG SDUN WKHLU YHKLFOH GLUHFWO\ DERYH RU EHORZ WKH WHVW ORFDWLRQ RQ WKH VORSH 7KH FRQWUDFWRU
V UHSUHVHQWDWLYH VKRXOGHIIHFWLYHO\ NHHS DOO HTXLSPHQW DW D VDIH RSHUDWLRQGLVWDQFH
HJIHHW
DZD\IURPWKHVORSHGXULQJWHVWLQJ
7KHWHFKQLFLDQLVGLUHFWHGWRZLWKGUDZIURPWKHDFWLYHSRUWLRQ RIWKHILOODVVRRQDVSRVVLEOHIROORZLQJ WHVWLQJ7KHWHFKQLFLDQ
VYHKLFOHVKRXOGEHSDUNHGDWWKHSHULPHWHURIWKHILOOLQDKLJKO\YLVLEOHORFDWLRQ 7UHQFK6DIHW\
,W LV WKH FRQWUDFWRU
V UHVSRQVLELOLW\ WR SURYLGH VDIH DFFHVV LQWR WUHQFKHV ZKHUH FRPSDFWLRQ WHVWLQJ LV QHHGHG 7UHQFKHV IRU DOO XWLOLWLHV VKRXOG EH H[FDYDWHG LQ DFFRU G D Q F H Z L W K & $ / 2 6 + $ D Q G D Q \ R W K H U DSSOLFDEOHVDIHW\VWDQGDUGV6DIHFRQGLWLRQVZLOOEHUHTXLUHG WRHQDEOHFRPSDFWLRQWHVWLQJRIWKHWUHQFK EDFNILOO
$OOXWLOLW\WUHQFKH[FDYDWLRQVLQH[FHVVRIIHHWGHHSZKLFK DSHUVRQHQWHUVDUHWREHVKRUHGRU ODLG EDFN 7UHQFK DFFHVV VKRXOG EH SURYLGHG LQ DFFRUGDQFH ZLWK 26+$V W D Q G D U G V 2 X U S H U V R Q Q H O D U H GLUHFWHGQRWWRHQWHUDQ\WUHQFKE\EHLQJORZHUHGRUULGLQJGRZQRQWKHHTXLSPHQW
2XUSHUVRQQHODUHGLUHFWHGQRWWRHQWHUDQ\H[FDYDWLRQZKLFK
LVIHHWRUGHHSHUXQOHVVVKRUHGRUODLGEDFN
H[LWSRLQWVRUODGGHUVDUHQRWSURYLGHG
GLVSOD\VDQ\HYLGHQFHRILQVWDELOLW\KDVDQ\ORRVHURFNRURWKHUGHEULVZKLFKFRXOGIDOOLQWRWKH WUHQFKRU
GLVSOD\VDQ\RWKHUHYLGHQFHRIDQ\XQVDIHFRQGLWLRQVUHJDUGOHVVRIGHSWK
,I WKH FRQWUDFWRU IDLOV WR SURYLGH VDIH DFFHVV WR WUHQFKHV IRUFRPSDFWLRQ WHVWLQJ RXU FRPSDQ\ SROLF\ UHTXLUHVWKDWWKHVRLOWHFKQLFLDQZLWKGUDZVDQGQRWLILHVWKHLUVXSHUYLVRU7KHFRQWUDFWRUVUHSUHVHQWDWLYH ZLOOWKHQEHFRQWDFWHGLQDQHIIRUWWRHIIHFWDVROXWLRQ$OO EDFNILOOQRWWHVWHGGXHWRVDIHW\FRQFHUQVRU RWKHUUHDVRQVLVVXEMHFWWRUHSURFHVVLQJDQGRUUHPRYDO *(1(5$/*5$',1**8,'(/,1(6 $33(1',;&
3DJH
3URFHGXUHV
,Q WKHHYHQW WKDW WKH WHFKQLFLDQ
V VDIHW\ LV MHRSDUGL]HG RU FRPSURPLVHG DV D UHVXOW RIWKH FRQWUDFWRU V
IDLOXUHWRFRPSO\ZLWKDQ\RIWKHDERYHWKHWHFKQLFLDQLVGLUH FWHG WR LQIRU PE RWKWKH GHYHORS HU V DQG
FRQWUDFWRU
V UHSUHVHQWDWLYHV ,I WKH FRQGLWLRQ LV QRW UHFWLILHG WKH WHFKQLFLDQ LV UHTXLUHG E\ FRPSDQ\ SROLF\WRLPPHGLDWHO\ZLWKGUDZDQGQRWLI\WKHLUVXSHUYLVRU7 KHFRQWUDFWRU·VUHSUHVHQWDWLYHZLOOWKHQ EHFRQWDFWHGLQDQHIIRUWWRHIIHFWDVROXWLRQ1RIXUWKHUWHV WLQJZLOOEHSHUIRUPHGXQWLOWKHVLWXDWLRQLV UHFWLILHG $Q\ ILOO SODFHG LQ WKH LQWHULP FDQ EH FRQVLGHUHG XQDFFHSWDEOH DQG VXEMHFW WR UHSURFHVVLQJ UHFRPSDFWLRQRUUHPRYDO
, Q W K H H Y H Q W W K D W W K H V R L O W H F K Q L F L D Q G R H V Q R W F R P S O \ Z L W K W K H DERYH RU RWKHU HVWDEOLVKHG VDIHW\ JXLGHOLQHV ZH UHTXHVW WKDW WKH FRQWUDFWRU EULQJ WKLV WR WHFKQLFLDQV DWWHQWLRQ DQG QRWLI\ RXU SURMHFW PDQDJHURURIILFH(IIHFWLYHFRPPXQLFDWLRQDQGFRRU GLQDWLRQEH WZHHQWKHFRQWUDFWRUV UHSUHVHQWDWLYH
DQGWKHILHOGWHFKQLFLDQ
V
LVVWURQJO\HQFRXUDJHGLQRUGHUWR LPSOHPHQWWKHDERYHVDIHW\SURJUDPDQG VDIHW\LQJHQHUDO
7KHVDIHW\SURFHGXUHVRXWOLQHGDERYHVKRXOGEHGLVFXVVHGDWWKH FRQWUDFWRU VVDIHW\PHHWLQJV7KLVZLOO
VHUYH WR LQIRUP DQG UHPLQG HTXLSPHQW RSHUDWRUV RI WKHVH VDIHW\SURFHGXUHV SDUWLFXODUO\ WKH ]RQH RI QRQHQFURDFKPHQW
7KHVDIHW\SURFHGXUHVRXWOLQHGDERYHVKRXOGEHGLVFXVVHGDWWKH FRQWUDFWRU VVDIHW\PHHWLQJV7KLVZLOO
VHUYH WR LQIRUP DQG UHPLQG HTXLSPHQW RSHUDWRUV RI WKHVH VDIHW\SURFHGXUHV SDUWLFXODUO\ WKH ]RQH RI QRQHQFURDFKPHQW