EXHIBIT 2
/RFDO$VVLVWDQFH3URFHGXUHV0DQXDO ([KLELW*
5HTXLUHG)HGHUDO$LG&RQWUDFW/DQJXDJH
7KHFRQWUDFWDPRXQWXSRQZKLFKWKHUHTXLUHPHQWVVHWIRUWKLQ SDUDJUDSK
RI6HFWLRQ9,LVFRPSXWHGLQFOXGHVWKHFRVWRI
PDWHULDODQGPDQXIDFWXUHGSURGXFWVZKLFKDUHWREHSXUFKDVHG RU SURGXFHGE\WKHFRQWUDFWRUXQGHUWKHFRQWUDFWSURYLVLRQV 7KHFRQWUDFWRUVKDOOIXUQLVK
D
DFRPSHWHQWVXSHULQWHQGHQWRU
VXSHUYLVRUZKRLVHPSOR\HGE\WKHILUPKDVIXOODXWKRULW\WR GLUHFW SHUIRUPDQFHRIWKHZRUNLQDFFRUGDQFHZLWKWKHFRQWUDFW UHTXLUHPHQWVDQGLVLQFKDUJHRIDOOFRQVWUXFWLRQRSHUDWLRQV
UHJDUGOHVVRIZKRSHUIRUPVWKHZRUN
DQG
E
VXFKRWKHURILWV
RZQRUJDQL]DWLRQDOUHVRXUFHV
VXSHUYLVLRQPDQDJHPHQWDQG
HQJLQHHULQJVHUYLFHV
DVWKHFRQWUDFWLQJRIILFHUGHWHUPLQHVLV
QHFHVVDU\WRDVVXUHWKHSHUIRUPDQFHRIWKHFRQWUDFW
1RSRUWLRQRIWKHFRQWUDFWVKDOOEHVXEOHWDVVLJQHGRU RWKHUZLVH GLVSRVHGRIH[FHSWZLWKWKHZULWWHQFRQVHQWRIWKHFRQWUDFWLQJ RIILFHURUDXWKRUL]HGUHSUHVHQWDWLYHDQGVXFKFRQVHQWZKHQ JLYHQVKDOOQRWEHFRQVWUXHGWRUHOLHYHWKHFRQWUDFWRURIDQ\ UHVSRQVLELOLW\IRUWKHIXOILOOPHQWRIWKHFRQWUDFW:ULWWHQFRQVHQW ZLOOEHJLYHQRQO\DIWHUWKHFRQWUDFWLQJDJHQF\KDVDVVXUHGWKDW HDFKVXEFRQWUDFWLVHYLGHQFHGLQZULWLQJDQGWKDWLWFRQWDLQVDOO SHUWLQHQWSURYLVLRQVDQGUHTXLUHPHQWVRIWKHSULPHFRQWUDFW 7KHVHOISHUIRUPDQFHUHTXLUHPHQWRISDUDJUDSK
LVQRW
DSSOLFDEOHWRGHVLJQEXLOGFRQWUDFWV
KRZHYHUFRQWUDFWLQJ
DJHQFLHVPD\HVWDEOLVKWKHLURZQVHOISHUIRUPDQFHUHTXLUHPHQWV 9,, 6$)(7<
$&&,'(1735(9(17,21
7KLVSURYLVLRQLVDSSOLFDEOHWRDOO)HGHUDODLGFRQVWUXFWLRQFRQWUDFWV DQGWRDOOUHODWHGVXEFRQWUDFWV
,QWKHSHUIRUPDQFHRIWKLVFRQWUDFWWKHFRQWUDFWRUVKDOOFRPSO\ ZLWKDOODSSOLFDEOH)HGHUDO6WDWHDQGORFDOODZVJRYHUQLQJVDIHW\ KHDOWKDQGVDQLWDWLRQ
&)5
7KHFRQWUDFWRUVKDOOSURYLGH
DOOVDIHJXDUGVVDIHW\GHYLFHVDQGSURWHFWLYHHTXLSPHQWDQGWDNH DQ\RWKHUQHHGHGDFWLRQVDVLWGHWHUPLQHVRUDVWKHFRQWUDFWLQJ RIILFHUPD\GHWHUPLQHWREHUHDVRQDEO\QHFHVVDU\WRSURWHFWWKH OLIHDQGKHDOWKRIHPSOR\HHVRQWKHMREDQGWKHVDIHW\RIWKH SXEOLF DQGWRSURWHFWSURSHUW\LQFRQQHFWLRQZLWKWKHSHUIRUPDQFHRIWKH ZRUNFRYHUHGE\WKHFRQWUDFW
,WLVDFRQGLWLRQRIWKLVFRQWUDFWDQGVKDOOEHPDGHDFRQGLWLRQRI HDFKVXEFRQWUDFWZKLFKWKHFRQWUDFWRUHQWHUVLQWRSXUVXDQWWRWKLV FRQWUDFWWKDWWKHFRQWUDFWRUDQGDQ\VXEFRQWUDFWRUVKDOOQRWSHUPLW DQ\HPSOR\HHLQSHUIRUPDQFHRIWKHFRQWUDFWWRZRUNLQ VXUURXQGLQJVRUXQGHUFRQGLWLRQVZKLFKDUHXQVDQLWDU\KD]DUGRXV RUGDQJHURXVWRKLVKHUKHDOWKRUVDIHW\DVGHWHUPLQHGXQGHU FRQVWUXFWLRQVDIHW\DQGKHDOWKVWDQGDUGV
&)5
SURPXOJDWHGE\WKH6HFUHWDU\RI/DERULQDFFRUGDQFHZLWK 6HFWLRQRIWKH&RQWUDFW:RUN+RXUVDQG6DIHW\6WDQGDUGV$FW
86&
3XUVXDQWWR
&)5
LWLVDFRQGLWLRQRIWKLVFRQWUDFWWKDW
WKH6HFUHWDU\RI/DERURUDXWKRUL]HGUHSUHVHQWDWLYHWKHUHRIVKDOO KDYHULJKWRIHQWU\WRDQ\VLWHRIFRQWUDFWSHUIRUPDQFHWRLQVSHFW RU LQYHVWLJDWHWKHPDWWHURIFRPSOLDQFHZLWKWKHFRQVWUXFWLRQVDIHW\ DQGKHDOWKVWDQGDUGVDQGWRFDUU\RXWWKHGXWLHVRIWKH6HFUHWDU\ XQGHU6HFWLRQRIWKH&RQWUDFW:RUN+RXUVDQG6DIHW\ 6WDQGDUGV$FW
86&
9,,, )$/6(67$7(0(176&21&(51,1*+,*+:$<
352-(&76
7KLVSURYLVLRQLVDSSOLFDEOHWRDOO)HGHUDODLGFRQVWUXFWLRQFR QWUDFWV
DQGWRDOOUHODWHGVXEFRQWUDFWV
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
&)5
LQRQHRUPRUH SODFHV
ZKHUHLWLVUHDGLO\DYDLODEOHWRDOOSHUVRQVFRQFHUQHGZLWKWKHSURMHFW
86&UHDGVDVIROORZV
:KRHYHUEHLQJDQRIILFHUDJHQWRUHPSOR\HHRIWKH8QLWHG 6WDWHVRURIDQ\6WDWHRU7HUULWRU\RUZKRHYHUZKHWKHUDSHUVRQ DVVRFLDWLRQILUPRUFRUSRUDWLRQNQRZLQJO\PDNHVDQ\IDOVH VWDWHPHQWIDOVHUHSUHVHQWDWLRQRUIDOVHUHSRUWDVWRWKHFKDUDFWHU TXDOLW\TXDQWLW\RUFRVWRIWKHPDWHULDOXVHGRUWREHXVHGRUWKH TXDQWLW\RUTXDOLW\RIWKHZRUNSHUIRUPHGRUWREHSHUIRUPHGRUWKH FRVWWKHUHRILQFRQQHFWLRQZLWKWKHVXEPLVVLRQRISODQVPDSV VSHFLILFDWLRQVFRQWUDFWVRUFRVWVRIFRQVWUXFWLRQRQDQ\KLJKZD\RU UHODWHGSURMHFWVXEPLWWHGIRUDSSURYDOWRWKH6HFUHWDU\RI 7UDQVSRUWDWLRQ
RU
:KRHYHUNQRZLQJO\PDNHVDQ\IDOVHVWDWHPHQWIDOVH
UHSUHVHQWDWLRQIDOVHUHSRUWRUIDOVHFODLPZLWKUHVSHFWWRWKH FKDUDFWHUTXDOLW\TXDQWLW\RUFRVWRIDQ\ZRUNSHUIRUPHGRUWREH SHUIRUPHGRUPDWHULDOVIXUQLVKHGRUWREHIXUQLVKHGLQFRQQHFWLRQ ZLWKWKHFRQVWUXFWLRQRIDQ\KLJKZD\RUUHODWHGSURMHFWDSSURYHGE\ WKH6HFUHWDU\RI7UDQVSRUWDWLRQ
RU
:KRHYHUNQRZLQJO\PDNHVDQ\IDOVHVWDWHPHQWRUIDOVH
UHSUHVHQWDWLRQDVWRPDWHULDOIDFWLQDQ\VWDWHPHQWFHUWLILFDWHRU UHSRUWVXEPLWWHGSXUVXDQWWRSURYLVLRQVRIWKH)HGHUDODLG5RDGV$FW DSSURYHG-XO\
6WDW
DVDPHQGHGDQG
VXSSOHPHQWHG
6KDOOEHILQHGXQGHUWKLVWLWOHRULPSULVRQHGQRWPRUHWKDQ\HDUV RUERWK
,; ,03/(0(17$7,212)&/($1$,5$&7$1')('(5$/
:$7(532//87,21&21752/$&7
7KLVSURYLVLRQLVDSSOLFDEOHWRDOO)HGHUDODLGFRQVWUXFWLRQFRQWUDFWV DQGWRDOOUHODWHGVXEFRQWUDFWV
%\VXEPLVVLRQRIWKLVELGSURSRVDORUWKHH[HFXWLRQRIWKLVFRQWUDFW RUVXEFRQWUDFWDVDSSURSULDWHWKHELGGHUSURSRVHU)HGHUDODLG FRQVWUXFWLRQFRQWUDFWRURUVXEFRQWUDFWRUDVDSSURSULDWHZLOOEH GHHPHGWRKDYHVWLSXODWHGDVIROORZV
7KDWDQ\SHUVRQZKRLVRUZLOOEHXWLOL]HGLQWKH
SHUIRUPDQFHRIWKLVFRQWUDFWLVQRWSURKLELWHGIURPUHFHLYLQJDQ DZDUGGXHWRDYLRODWLRQRI6HFWLRQRIWKH&OHDQ:DWHU$FWRU 6HFWLRQRIWKH&OHDQ$LU$FW
7KDWWKHFRQWUDFWRUDJUHHVWRLQFOXGHRUFDXVHWREH LQFOXGHGWKHUHTXLUHPHQWVRISDUDJUDSK
RIWKLV6HFWLRQ;LQHYHU\
VXEFRQWUDFWDQGIXUWKHUDJUHHVWRWDNHVXFKDFWLRQDVWKH FRQWUDFWLQJDJHQF\PD\GLUHFWDVDPHDQVRIHQIRUFLQJVXFK UHTXLUHPHQWV
3DJHRI
-DQXDU\
EXHIBIT E
EXHIBIT 2
/RFDO$VVLVWDQFH3URFHGXUHV0DQXDO ([KLELW*
5HTXLUHG)HGHUDO$LG&RQWUDFW/DQJXDJH
)+:$ 5HYLVHG0D\
;&(57,),&$7,215(*$5',1*'(%$50(176863(16,21
,1(/,*,%,/,7<$1'92/817$5<(;&/86,21
7KLVSURYLVLRQLVDSSOLFDEOHWRDOO)HGHUDODLGFRQVWUXFWLRQFRQWUDFWV GHVLJQEXLOGFRQWUDFWVVXEFRQWUDFWVORZHUWLHUVXEFRQWUDFWV SXUFKDVHRUGHUVOHDVHDJUHHPHQWVFRQVXOWDQWFRQWUDFWVRUDQ\ RWKHUFRYHUHGWUDQVDFWLRQUHTXLULQJ)+:$DSSURYDORUWKDWLV HVWLPDWHGWRFRVWRUPRUH±DVGHILQHGLQ&)53DUWV DQG
,QVWUXFWLRQVIRU&HUWLILFDWLRQ±)LUVW7LHU 3DUWLFLSDQWV
D%\VLJQLQJDQGVXEPLWWLQJWKLVSURSRVDOWKHSURVSHFWLYHILUVWWLHU SDUWLFLSDQWLVSURYLGLQJWKHFHUWLILFDWLRQVHWRXWEHORZ E7KHLQDELOLW\RIDSHUVRQWRSURYLGHWKHFHUWLILFDWLRQVHWRXWEHORZ ZLOOQRWQHFHVVDULO\UHVXOWLQGHQLDORISDUWLFLSDWLRQLQWKLVFRYHUHG WUDQVDFWLRQ7KHSURVSHFWLYHILUVWWLHUSDUWLFLSDQWVKDOOVXEPLWDQ H[SODQDWLRQRIZK\LWFDQQRWSURYLGHWKHFHUWLILFDWLRQVHWRXW EHORZ 7KHFHUWLILFDWLRQRUH[SODQDWLRQZLOOEHFRQVLGHUHGLQFRQQHFWLRQ ZLWKWKHGHSDUWPHQWRUDJHQF\
VGHWHUPLQDWLRQZKHWKHUWRHQWHU
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
WUDQVDFWLRQIRUFDXVHRIGHIDXOW
G7KHSURVSHFWLYHILUVWWLHUSDUWLFLSDQWVKDOOSURYLGHLPPHGLDWH ZULWWHQ QRWLFHWRWKHFRQWUDFWLQJDJHQF\WRZKRPWKLVSURSRVDOLV VXEPLWWHGLIDQ\WLPHWKHSURVSHFWLYHILUVWWLHUSDUWLFLSDQWOHDUQVWKDW LWVFHUWLILFDWLRQZDVHUURQHRXVZKHQVXEPLWWHGRUKDVEHFRPH HUURQHRXVE\UHDVRQRIFKDQJHGFLUFXPVWDQFHV
H7KHWHUPVFRYHUHGWUDQVDFWLRQGHEDUUHGVXVSHQGHG LQHOLJLEOHSDUWLFLSDQWSHUVRQSULQFLSDODQGYROXQWDULO\ H[FOXGHGDVXVHGLQWKLVFODXVHDUHGHILQHGLQ&)53DUWV DQG³)LUVW7LHU&RYHUHG7UDQVDFWLRQV´UHIHUVWRDQ\FRYHUHG WUDQVDFWLRQEHWZHHQDJUDQWHHRUVXEJUDQWHHRI)HGHUDOIXQGVDQG DSDUWLFLSDQW
VXFKDVWKHSULPHRUJHQHUDOFRQWUDFW
³/RZHU7LHU
&RYHUHG7UDQVDFWLRQV´UHIHUVWRDQ\FRYHUHGWUDQVDFWLRQXQGHUD )LUVW7LHU&RYHUHG7UDQVDFWLRQ
VXFKDVVXEFRQWUDFWV
³)LUVW7LHU
3DUWLFLSDQW´UHIHUVWRWKHSDUWLFLSDQWZKRKDVHQWHUHGLQWRD FRYHUHGWUDQVDFWLRQZLWKDJUDQWHHRUVXEJUDQWHHRI)HGHUDOIXQGV
VXFKDVWKHSULPHRUJHQHUDOFRQWUDFWRU
³/RZHU7LHU3DUWLFLSDQW´
UHIHUVDQ\SDUWLFLSDQWZKRKDVHQWHUHGLQWRDFRYHUHGWUDQVDFWLRQ ZLWKD)LUVW7LHU3DUWLFLSDQWRURWKHU/RZHU7LHU3DUWLFLSDQWV VXFK
DVVXEFRQWUDFWRUVDQGVXSSOLHUV
I 7KHSURVSHFWLYHILUVWWLHUSDU WLFLSDQWDJUHHVE\VXEPLWWLQJWKLV SURSRVDOWKDWVKRXOGWKHSURSRVHGFRYHUHGWUDQVDFWLRQEHHQWHUHG LQWRLWVKDOOQRWNQRZLQJO\HQWHULQWRDQ\ORZHUWLHUFRYHUHG WUDQVDFWLRQZLWKDSHUVRQZKRLVGHEDUUHGVXVSHQGHGGHFODUHG LQHOLJLEOHRUYROXQWDULO\H[FOXGHGIURPSDUWLFLSDWLRQLQWKLVFRYHUHG WUDQVDFWLRQXQOHVVDXWKRUL]HGE\WKHGHSDUWPHQWRUDJHQF\ HQWHULQJLQWRWKLVWUDQVDFWLRQ
J7KHSURVSHFWLYHILUVWWLHUSDUWLFLSDQWIXUWKHUDJUHHVE\VXEPLWWLQJ WKLVSURSRVDOWKDWLWZLOOLQFOXGHWKHFODXVHWLWOHG&HUWLILFDWLRQ 5HJDUGLQJ'HEDUPHQW6XVSHQVLRQ,QHOLJLELOLW\DQG9ROXQWDU\ ([FOXVLRQ/RZHU7LHU&RYHUHG7UDQVDFWLRQVSURYLGHGE\WKH GHSDUWPHQWRUFRQWUDFWLQJDJHQF\HQWHULQJLQWRWKLVFRYHUHG WUDQVDFWLRQZLWKRXWPRGLILFDWLRQLQDOOORZHUWLHUFRYHUHG WUDQVDFWLRQVDQGLQDOOVROLFLWDWLRQVIRUORZHUWLHUFRYHUHG WUDQVDFWLRQVH[FHHGLQJWKHWKUHVKROG
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
KWWSV
ZZZHSOVJRY
ZKLFKLVFRPSLOHGE\WKH*HQHUDO6HUYLFHV$GPLQLVWUDWLRQ L1RWKLQJFRQWDLQHGLQWKHIRUHJRLQJVKDOOEHFRQVWUXHGWRUHTXLUH WKHHVWDEOLVKPHQWRIDV\VWHPRIUHFRUGVLQRUGHUWRUHQGHULQ JRRG IDLWKWKHFHUWLILFDWLRQUHTXLUHGE\WKLVFODXVH7KHNQRZOHGJHDQG LQIRUPDWLRQRIWKHSURVSHFWLYHSDUWLFLSDQWLVQRWUHTXLUHGWRH[FHHG WKDWZKLFKLVQRUPDOO\SRVVHVVHGE\DSUXGHQWSHUVRQLQWKH RUGLQDU\FRXUVHRIEXVLQHVVGHDOLQJV
M([FHSWIRUWUDQVDFWLRQVDXWKRUL]HGXQGHUSDUDJUDSK
I
RIWKHVH
LQVWUXFWLRQVLIDSDUWLFLSDQWLQDFRYHUHGWUDQVDFWLRQNQRZLQJO\ HQWHUVLQWRDORZHUWLHUFRYHUHGWUDQVDFWLRQZLWKDSHUVRQZKRLV VXVSHQGHGGHEDUUHGLQHOLJLEOHRUYROXQWDULO\H[FOXGHGIURP SDUWLFLSDWLRQLQWKLVWUDQVDFWLRQLQDGGLWLRQWRRWKHUUHPHGLHV DYDLODEOHWRWKH)HGHUDO*RYHUQPHQWWKHGHSDUWPHQWRUDJHQF\ PD\WHUPLQDWHWKLVWUDQVDFWLRQIRUFDXVHRU GHIDXOW
&HUWLILFDWLRQ5HJDUGLQJ'HEDUPHQW6XVSHQVLRQ,QHOLJLELOLW\ DQG9ROXQWDU\([FOXVLRQ±)LUVW7LHU3DUWLFLSDQWV
D7KHSURVSHFWLYHILUVWWLHUSDUWLFLSDQWFHUWLILHVWRWKHEHVWRI LWV NQRZOHGJHDQGEHOLHIWKDWLWDQGLWVSULQFLSDOV
$UHQRWSUHVHQWO\GHEDUUHGVXVSHQGHGSURSRVHGIRU
GHEDUPHQWGHFODUHGLQHOLJLEOHRUYROXQWDULO\H[FOXGHGIURP SDUWLFLSDWLQJLQFRYHUHGWUDQVDFWLRQVE\DQ\)HGHUDO GHSDUWPHQW RUDJHQF\
+DYHQRWZLWKLQDWKUHH\HDUSHULRGSUHFHGLQJWKLVSURSRVDO EHHQFRQYLFWHGRIRUKDGDFLYLOMXGJPHQWUHQGHUHGDJDLQVW WKHP IRUFRPPLVVLRQRIIUDXGRUDFULPLQDORIIHQVHLQFRQQHFWLRQZLWK REWDLQLQJDWWHPSWLQJWRREWDLQRUSHUIRUPLQJDSXEOLF )HGHUDO
6WDWHRUORFDO
WUDQVDFWLRQRUFRQWUDFWXQGHUDSXEOLFWUDQVDFWLRQ
YLRODWLRQRI)HGHUDORU6WDWHDQWLWUXVWVWDWXWHVRUFRPPLVVLRQRI HPEH]]OHPHQWWKHIWIRUJHU\EULEHU\IDOVLILFDWLRQRUGHVWUXFWLRQ RIUHFRUGVPDNLQJIDOVHVWDWHPHQWVRUUHFHLYLQJVWROHQ SURSHUW\
$UHQRWSUHVHQWO\LQGLFWHGIRURURWKHUZLVHFULPLQDOO\RUFLYLOO\ FKDUJHGE\DJRYHUQPHQWDOHQWLW\
)HGHUDO6WDWHRUORFDO
ZLWK
FRPPLVVLRQRIDQ\RIWKHRIIHQVHVHQXPHUDWHGLQSDUDJUDSK
D
RIWKLVFHUWLILFDWLRQ
DQG
+DYHQRWZLWKLQDWKUHH\HDUSHULRGSUHFHGLQJWKLV
DSSOLFDWLRQSURSRVDOKDGRQHRUPRUHSXEOLF WUDQVDFWLRQV
)HGHUDO6WDWHRUORFDO
WHUPLQDWHGIRUFDXVHRU GHIDXOW
E:KHUHWKHSURVSHFWLYHSDUWLFLSDQWLVXQDEOHWRFHUWLI\WRDQ\RI WKHVWDWHPHQWVLQWKLVFHUWLILFDWLRQVXFKSURVSHFWLYHSDUWLFLSDQW VKDOODWWDFKDQH[SODQDWLRQWRWKLVSURSRVDO
3DJHRI
-DQXDU\
EXHIBIT E
EXHIBIT 2
/RFDO$VVLVWDQFH3URFHGXUHV0DQXDO ([KLELW*
5HTXLUHG)HGHUDO$LG&RQWUDFW/DQJXDJH
,QVWUXFWLRQVIRU&HUWLILFDWLRQ /RZHU7LHU3DUWLFLSDQWV
$SSOLFDEOHWRDOOVXEFRQWUDFWVSXUFKDVHRUGHUVDQGRWKHUORZHUWLHU WUDQVDFWLRQVUHTXLULQJSULRU)+:$DSSURYDORUHVWLPDWHGWRFRVW RUPRUH &)53DUWVDQG
D %\ VLJQLQJDQGVXEPLWWLQJWKLVSURSRVDOWKHSURVSHFWLYHORZHU WLHU LVSURYLGLQJWKHFHUWLILFDWLRQVHWRXWEHORZ
E 7KHFHUWLILFDWLRQLQWKLVFODXVHLVDPDWHULDOUHSUHVHQWDWLRQRIIDFW XSRQZKLFKUHOLDQFHZDVSODFHGZKHQWKLVWUDQVDFWLRQZDV HQWHUHGLQWR,ILWLVODWHUGHWHUPLQHGWKDWWKHSURVSHFWLYHORZHUWLHU SDUWLFLSDQWNQRZLQJO\UHQGHUHGDQHUURQHRXVFHUWLILFDWLRQLQ DGGLWLRQWRRWKHUUHPHGLHVDYDLODEOHWRWKH)HGHUDO*RYHUQPHQW WKHGHSDUWPHQWRUDJHQF\ZLWKZKLFKWKLVWUDQVDFWLRQRULJLQDWHG PD\SXUVXHDYDLODEOHUHPHGLHVLQFOXGLQJVXVSHQVLRQDQGRU GHEDUPHQW
F7KHSURVSHFWLYHORZHUWLHUSDUWLFLSDQWVKDOOSURYLGHLPPHGLDWH ZULWWHQQRWLFHWRWKHSHUVRQWRZKLFKWKLVSURSRVDOLVVXEPLWWHGLI DWDQ\WLPHWKHSURVSHFWLYHORZHUWLHUSDUWLFLSDQWOHDUQVWKDWLWV FHUWLILFDWLRQZDVHUURQHRXVE\UHDVRQRIFKDQJHG FLUFXPVWDQFHV G 7KHWHUPVFRYHUHGWUDQVDFWLRQGHEDUUHGVXVSHQGHG LQHOLJLEOHSDUWLFLSDQWSHUVRQSULQFLSDODQGYROXQWDULO\ H[FOXGHGDVXVHGLQWKLVFODXVHDUHGHILQHGLQ&)53DUWV DQG<RXPD\FRQWDFWWKHSHUVRQWRZKLFKWKLVSURSRVDOLV VXEPLWWHGIRUDVVLVWDQFHLQREWDLQLQJDFRS\RIWKRVHUHJXODWLRQV ³)LUVW7LHU&RYHUHG7UDQVDFWLRQV´UHIHUVWRDQ\FRYHUHG WUDQVDFWLRQEHWZHHQDJUDQWHHRUVXEJUDQWHHRI)HGHUDOIXQGV DQGDSDUWLFLSDQW
VXFKDVWKHSULPHRUJHQHUDOFRQWUDFW
³/RZHU
7LHU&RYHUHG7UDQVDFWLRQV´UHIHUVWRDQ\FRYHUHGWUDQVDFWLRQ XQGHUD)LUVW7LHU&RYHUHG7UDQVDFWLRQ
VXFKDVVXEFRQWUDFWV
³)LUVW7LHU3DUWLFLSDQW´UHIHUVWRWKHSDUWLFLSDQWZKRKDVHQWHUHG LQWRDFRYHUHGWUDQVDFWLRQZLWKDJUDQWHHRUVXEJUDQWHHRI )HGHUDOIXQGV
VXFKDVWKHSULPHRUJHQHUDOFRQWUDFWRU
³/RZHU
7LHU3DUWLFLSDQW´UHIHUVDQ\SDUWLFLSDQWZKRKDVHQWHUHGLQWRD FRYHUHGWUDQVDFWLRQZLWKD)LUVW7LHU3DUWLFLSDQWRURWKHU/RZHU 7LHU3DUWLFLSDQWV
VXFKDVVXEFRQWUDFWRUVDQGVXSSOLHUV
H 7KHSURVSHFWLYHORZHUWLHUSDUWLFLSDQWDJUHHVE\VXEPLWWLQJWKLV SURSRVDOWKDWVKRXOGWKHSURSRVHGFRYHUHGWUDQVDFWLRQEH HQWHUHGLQWRLWVKDOOQRWNQRZLQJO\HQWHULQWRDQ\ORZHUWLHU FRYHUHGWUDQVDFWLRQZLWKDSHUVRQZKRLVGHEDUUHGVXVSHQGHG GHFODUHGLQHOLJLEOHRUYROXQWDULO\H[FOXGHGIURPSDUWLFLSDWLRQLQ WKLVFRYHUHGWUDQVDFWLRQXQOHVVDXWKRUL]HGE\WKHGHSDUWPHQWRU DJHQF\ZLWKZKLFKWKLVWUDQVDFWLRQRULJLQDWHG
I7KHSURVSHFWLYHORZHUWLHUSDUWLFLSDQWIXUWKHUDJUHHVE\VXEPLWWLQJ WKLVSURSRVDOWKDWLWZLOOLQFOXGHWKLVFODXVHWLWOHG&HUWLILFDWLRQ 5HJDUGLQJ'HEDUPHQW6XVSHQVLRQ,QHOLJLELOLW\DQG9ROXQWDU\ ([FOXVLRQ/RZHU7LHU&RYHUHG7UDQVDFWLRQZLWKRXWPRGLILFDWLRQ
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
KWWSV
ZZZHSOVJRY
ZKLFKLVFRPSLOHGE\WKH*HQHUDO
6HUYLFHV$GPLQLVWUDWLRQ
)+:$ 5HYLVHG0D\
K1RWKLQJFRQWDLQHGLQWKHIRUHJRLQJVKDOOEHFRQVWUXHGWRUHTXLUH HVWDEOLVKPHQWRIDV\VWHPRIUHFRUGVLQRUGHUWRUHQGHULQJRRG IDLWKWKHFHUWLILFDWLRQUHTXLUHGE\WKLVFODXVH7KHNQRZOHGJHDQG QRUPDOO\SRVVHVVHGE\DSUXGHQWSHUVRQLQWKHRUGLQDU\FRXUVHRI EXVLQHVVGHDOLQJV
L([FHSWIRUWUDQVDFWLRQVDXWKRUL]HGXQGHUSDUDJUDSKHRIWKHVH LQVWUXFWLRQVLIDSDUWLFLSDQWLQDFRYHUHGWUDQVDFWLRQNQRZLQJO\ HQWHUVLQWRDORZHUWLHUFRYHUHGWUDQVDFWLRQZLWKDSHUVRQZKRLV VXVSHQGHGGHEDUUHGLQHOLJLEOHRUYROXQWDULO\H[FOXGHGIURP SDUWLFLSDWLRQLQWKLVWUDQVDFWLRQLQDGGLWLRQWRRWKHUUHPHGLHV DYDLODEOHWRWKH)HGHUDO*RYHUQPHQWWKHGHSDUWPHQWRUDJHQF\ ZLWKZKLFKWKLVWUDQVDFWLRQRULJLQDWHGPD\SXUVXHDYDLODEOH UHPHGLHVLQFOXGLQJVXVSHQVLRQDQGRUGHEDUPHQW
&HUWLILFDWLRQ5HJDUGLQJ'HEDUPHQW6XVSHQVLRQ,QHOLJLELOLW\ DQG9ROXQWDU\([FOXVLRQ/RZHU7LHU3DUWLFLSDQWV
7KHSURVSHFWLYHORZHUWLHUSDUWLFLSDQWFHUWLILHVE\VXEPLVVLRQRI WKLVSURSRVDOWKDWQHLWKHULWQRULWVSULQFLSDOVLVSUHVHQWO\ GHEDUUHGVXVSHQGHGSURSRVHGIRUGHEDUPHQWGHFODUHG
LQHOLJLEOHRUYROXQWDULO\H[FOXGHGIURPSDUWLFLSDWLQJLQFRYHUHG WUDQVDFWLRQVE\DQ\)HGHUDOGHSDUWPHQWRUDJHQF\
:KHUHWKHSURVSHFWLYHORZHUWLHUSDUWLFLSDQWLVXQDEOHWRFHUWLI\WR DQ\RIWKHVWDWHPHQWVLQWKLVFHUWLILFDWLRQVXFKSURVSHFWLYH SDUWLFLSDQWVKDOODWWDFKDQH[SODQDWLRQWRWKLVSURSRVDO
;,&(57,),&$7,215(*$5',1*86(2)&2175$&7)81'6
)25/2%%<,1*
7KLVSURYLVLRQLVDSSOLFDEOHWRDOO)HGHUDODLGFRQVWUXFWLRQFRQWUDFWV DQGWRDOOUHODWHGVXEFRQWUDFWVZKLFKH[FHHG
&)5
7KHSURVSHFWLYHSDUWLFLSDQWFHUWLILHVE\VLJQLQJDQG VXEPLWWLQJ WKLVELGRUSURSRVDOWRWKHEHVWRIKLVRUKHUNQRZOHGJHDQG EHOLHIWKDW
D1R)HGHUDODSSURSULDWHGIXQGVKDYHEHHQSDLGRUZLOOEHSDLG E\RURQEHKDOIRIWKHXQGHUVLJQHGWRDQ\SHUVRQIRULQIOXHQFLQJ RUDWWHPSWLQJWRLQIOXHQFHDQRIILFHURUHPSOR\HHRIDQ\)HGHUDO DJHQF\D0HPEHURI&RQJUHVVDQRIILFHURUHPSOR\HHRI &RQJUHVVRUDQHPSOR\HHRID0HPEHURI&RQJUHVVLQ
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
3DJH
RI
-DQXDU\
EXHIBIT E
EXHIBIT 2
/RFDO$VVLVWDQFH3URFHGXUHV0DQXDO ([KLELW*
5HTXLUHG)HGHUDO$LG&RQWUDFW/DQJXDJH
7KLVFHUWLILFDWLRQLVDPDWHULDOUHSUHVHQWDWLRQRIIDFWXSRQZKLFK UHOLDQFHZDVSODFHGZKHQWKLVWUDQVDFWLRQZDVPDGHRUHQWHUHG LQWR6XEPLVVLRQRIWKLVFHUWLILFDWLRQLVDSUHUHTXLVLWHIRUPDNLQJ RUHQWHULQJLQWRWKLVWUDQVDFWLRQLPSRVHGE\86& $Q\SHUVRQZKRIDLOVWRILOHWKHUHTXLUHGFHUWLILFDWLRQVKDOOEH VXEMHFWWRDFLYLOSHQDOW\RIQRWOHVVWKDQDQGQRWPRUH WKDQIRUHDFKVXFKIDLOXUH
7KHSURVSHFWLYHSDUWLFLSDQWDOVRDJUHHVE\VXEPLWWLQJLWVELGRU SURSRVDOWKDWWKHSDUWLFLSDQWVKDOOUHTXLUHWKDWWKHODQJXDJH RI WKLVFHUWLILFDWLRQEHLQFOXGHGLQDOOORZHUWLHUVXEFRQWUDFWVZKLFK H[FHHGLQIRUPDWLRQRISDUWLFLSDQWLVQRWUHTXLUHGWRH[FHHGWKDW ZKLFKLVDQGWKDWDOOVXFKUHFLSLHQWVVKDOOFHUWLI\DQG GLVFORVHDFFRUGLQJO\
3DJHRI
-DQXDU\
EXHIBIT E
EXHIBIT 2
/RFDO$VVLVWDQFH3URFHGXUHV0DQXDO ([KLELW*
5HTXLUHG)HGHUDO$LG&RQWUDFW/DQJXDJH
)(0$/($1'0,125,7<*2$/6
7RFRPSO\ZLWK6HFWLRQ,,1RQGLVFULPLQDWLRQRI5HTXLUHG&RQWUDFW3URYLVLRQV)HGHUDO$LG&RQVWUXFWLRQ &RQWUDFWVWKHIROORZLQJDUHIRUIHPDOHDQGPLQRULW\XWLOL]DWLRQJRDOVIRU)HGHUDODLGFRQVWUXFWLRQFRQWUDFWV DQGVXEFRQWUDFWVWKDWH[FHHG
7KHQDWLRQZLGHJRDOIRUIHPDOHXWLOL]DWLRQLV
SHUFHQW
7KHJRDOVIRUPLQRULW\XWLOL]DWLRQ>)HG5HJ
@DUHDVIROORZV
0,125,7<87,/,=$7,21*2$/6
(FRQRPLF
$UHD
*RDO
3HUFHQW
5HGGLQJ&$
1RQ606$
6WDQGDUG0HWURSROLWDQ6WDWLVWLFDO$UHD
&RXQWLHV
&$/DVVHQ
&$0RGRF
&$3OXPDV
&$6KDVWD
&$6LVNL\RX
&$7HKDPD
(XUHND&$
1RQ606$&RXQWLHV
&$'HO1RUWH
&$+XPEROGW
&$7ULQLW\
6DQ)UDQFLVFR2DNODQG6DQ-RVH&$
606$&RXQWLHV
6DOLQDV6HDVLGH0RQWHUH\&$
&$0RQWHUH\
6DQ)UDQFLVFR2DNODQG
&$$ODPHGD
&$&RQWUD&RVWD
&$0DULQ
&$6DQ)UDQFLVFR
&$6DQ0DWHR
6DQ-RVH&$
&$6DQWD&ODUD&$
6DQWD&UX]&$
&$6DQWD&UX]
6DQWD5RVD
&$6RQRPD
9DOOHMR)DLUILHOG1DSD&$
&$1DSD
&$6RODQR
1RQ606$&RXQWLHV
&$/DNH
&$0HQGRFLQR
&$6DQ%HQLWR
6DFUDPHQWR&$
606$&RXQWLHV
6DFUDPHQWR&$
&$3ODFHU
&$6DFUDPHQWR
&$
<ROR1RQ606$&RXQWLHV
&$%XWWH
&$&ROXVD
&$(O'RUDGR
&$*OHQQ
&$1HYDGD
&$6LHUUD
&$6XWWHU
&$
<XED
6WRFNWRQ0RGHVWR&$
606$&RXQWLHV
0RGHVWR&$
&$6WDQLVODXV
6WRFNWRQ&$
&$6DQ-RDTXLQ
1RQ606$&RXQWLHV
&$$OSLQH
&$$PDGRU
&$&DODYHUDV
&$0DULSRVD
&$0HUFHG
&$7XROXPQH
)UHVQR%DNHUVILHOG&$
606$&RXQWLHV
%DNHUVILHOG&$
&$.HUQ
)UHVQR&$
3DJHRI
-DQXDU\
EXHIBIT E
EXHIBIT 2
/RFDO$VVLVWDQFH3URFHGXUHV0DQXDO ([KLELW*
5HTXLUHG)HGHUDO$LG&RQWUDFW/DQJXDJH
&$)UHVQR
1RQ606$&RXQWLHV
&$.LQJV
&$0DGHUD
&$7XODUH
/RV$QJHOHV&$
606$&RXQWLHV
$QDKHLP6DQWD$QD*DUGHQ*URYH&$
&$2UDQJH
/RV$QJHOHV/RQJ%HDFK&$
&$/RV$QJHOHV
2[QDUG6LPL9DOOH\9HQWXUD&$
&$9HQWXUD
5LYHUVLGH6DQ%HUQDUGLQR2QWDULR&$
&$5LYHUVLGH
&$6DQ%HUQDUGLQR
6DQWD%DUEDUD6DQWD0DULD/RPSRF&$
&$6DQWD%DUEDUD
1RQ606$&RXQWLHV
&$,Q\R
&$0RQR
&$6DQ/XLV2ELVSR
6DQ'LHJR&$
606$&RXQWLHV
6DQ'LHJR&$
&$6DQ'LHJR
1RQ606$&RXQWLHV
&$,PSHULDO
)RUWKHODVWIXOOZHHNRI-XO\GXULQJZKLFKZRUNLVSHUIRUPHGXQGHUWKHFRQWUDFWWKHSULPHFRQWUDFWRUDQG HDFKQRQPDWHULDOVXSSOLHUVXEFRQWUDFWRUZLWKDVXEFRQWUDFWRIRUPRUHPXVWFRPSOHWH)RUP)+:$ 35
$SSHQGL[&WR&)5
6XEPLWWKHIRUPVE\$XJXVW
7,7/(9,$6685$1&(6
'XULQJWKHSHUIRUPDQFHRIWKLV$JUHHPHQWWKHFRQWUDFWRUIRULWVHOILWVDVVLJQHHVDQGVXFFHVVRUV LQLQWHUHVW
KHUHLQDIWHUFROOHFWLYHO\UHIHUUHGWRDV&2175$&725
DJUHHVDVIROORZV
D &RPSOLDQFHZLWK5HJXODWLRQV
&2175$&725VKDOOFRPSO\ZLWKWKH UHJXODWLRQVUHODWLYHWR QRQGLVFULPLQDWLRQLQIHGHUDOO\DVVLVWHGSURJUDPVRIWKH'HSDUWPHQWRI7UDQVSRUWDWLRQ7LWOH
&RGHRI)HGHUDO5HJXODWLRQV3DUWDVWKH\PD\EHDPHQGHGIURPWLPHWRWLPH
KHUHLQDIWHU
UHIHUUHGWRDVWKH5(*8/$7,216
ZKLFKDUHKHUHLQLQFRUSRUDWHGE\UHIHUHQFHDQGPDGHDSDUWRI WKLVDJUHHPHQW
E 1RQGLVFULPLQDWLRQ
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
VROLFLWDWLRQVHLWKHUE\FRPSHWLWLYHELGGLQJRUQHJRWLDWLRQPDGHE\&2175$&725IRUZRUNWREH SHUIRUPHGXQGHUD6XE DJUHHPHQWLQFOXGLQJSURFXUHPHQWVRIPDWHULDOVRUOHDVHVRIHTXLSPHQW HDFKSRWHQWLDOVXEDSSOLFDQWRUVXSSOLHUVKDOOEHQRWLILHGE\&2175$&725RIWKH &2175$&725¶6REOLJDWLRQVXQGHUWKLV$JUHHPHQWDQGWKH5HJXODWLRQVUHODWLYHWR QRQGLVFULPLQDWLRQRQWKHJURXQGVRIUDFHFRORURUQDWLRQDORULJLQ G ,QIRUPDWLRQDQG5HSRUWV
&2175$& 725VKDOOSURYLGHDOOLQIRUPDWLRQDQGUHSRUWVUHTXLUHGE\WKH 5HJXODWLRQVRUGLUHFWLYHVLVVXHGSXUVXDQWWKHUHWRDQGVKDOOSHUPLWDFFHVVWRLWVERRNVUHFRUGV DFFRXQWVRWKHUVRXUFHVRILQIRUPDWLRQDQGLWVIDFLOLWLHVDVPD\EHGHWHUPLQHGE\WKH&DOLIRUQLD 'HSDUWPHQWRI7UDQVSRUWDWLRQRU)+:$WREHSHUWLQHQWWRDVFHUWDLQFRPSOLDQFHZLWKVXFK 3DJHRI
-DQXDU\
EXHIBIT E
EXHIBIT 2
/RFDO$VVLVWDQFH3URFHGXUHV0DQXDO ([KLELW*
5HTXLUHG)HGHUDO$LG&RQWUDFW/DQJXDJH
5HJXODWLRQVRUGLUHFWLYHV:KHUHDQ\LQIRUPDWLRQUHTXLUHGRI&2175$&725LVLQWKHH[FOXVLYH SRVVHVVLRQRIDQRWKHUZKRIDLOVRUUHIXVHVWRIXUQLVKWKLVLQIRUPDWLRQ&2175$&725VKDOOVR FHUWLI\WRWKH&DOLIRUQLD'HSDUWPHQWRI7UDQVSRUWDWLRQRUWKH)+:$DVDSSURSULDWHDQGVKDOOVHW IRUWKZKDWHIIRUWV&2175$&725KDVPDGHWRREWDLQWKHLQIRUPDWLRQ H 6DQFWLRQVIRU1RQFRPSOLDQFH
,QWKHHYHQWRI&2175$&725¶VQRQ FRPSOLDQFHZLWKWKH
QRQGLVFULPLQDWLRQSURYLVLRQVRIWKLVDJUHHPHQWWKH&DOLIRUQLD'HSDUWPHQWRI7UDQVSRUWDWLRQ VKDOOLPSRVHVXFKDJUHHPHQWVDQFWLRQVDVLWRUWKH)+:$PD\GHWHUPLQHWREHDSSURSULDWH LQFOXGLQJEXWQRWOLPLWHGWR
L ZLWKKROGLQJRISD\PHQWVWR&2175$&725XQGHUWKH$JUHHPHQWZLW KLQDUHDVRQDEOH SHULRGRIWLPHQRWWRH[FHHG
GD\V
DQGRU
LL FDQFHOODWLRQWHUPLQDWLRQRUVXVSHQVLRQRIWKH$JUHHPHQWLQ ZKROHRULQSDUW I ,QFRUSRUDWLRQRI3URYLVLRQV
&2175$&725VKDOOLQFOXGHWKHSUR YLVLRQVRISDUDJUDSKV
WKURXJK
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
&$5*235()(5(1&($&7
7KH&2175$&725DJUHHV
7RXWLOL]HSULYDWHO\RZQHG8QLWHG6WDWHVIODJFRPPHUFLDOYHVVHOVWRVKLSDWOHDVWSHUFHQWRIWKH JURVVWRQQDJH
FRPSXWHGVHSDUDWHO\IRUGU\EXONFDUULHVGU\FDUJROLQHUVDQGWDQNHUV LQYROYHG
ZKHQHYHUVKLSSLQJDQ\HTXLSPHQWPDWHULDORUFRPPRGLWLHVSXUVXDQWWRWKLVFRQWUDFWWRWKHH[WHQW VXFKYHVVHOVDUHDYDLODEOHDWIDLUDQGUHDVRQDEOHUDWHVIRU8QLWHG6WDWHVIODJFRPPHUFLDOYHVVHOV 7R)XUQLVKZLWKLQGD\VIROORZLQJWKHGDWHRIORDGLQJIRUVKLSPHQWVRULJLQDWLQJZLWKLQWKH8QLWHG 6WDWHRUZLWKLQZRUNLQJGD\VIROORZLQJWKHGDWHRIORDGLQJIRUVKLSPHQWVRULJLQDWLQJRXWVLGHWKH 8QLWHG6WDWHVDOHJLEOHFRS\RIDUDWHG³RQERDUG´FRPPHUFLDORFHDQELOORIODGLQJLQ(QJOLVKIRU HDFKVKLSPHQWRIFDUJRGHVFULEHGLQSDUDJUDSK
RIWKLVVHFWLRQWRERWKWKH&RQWUDFWLQJ2IILFHU
WKURXJKWKHSULPHFRQWUDFWRULQWKHFDVHRIVXEFRQWUDFWRUELOOVRIODGLQJ DQGWRWKH'LYLVLRQRI
1DWLRQDO&DUJR2IILFHRI0DUNHW'HYHORSPHQW0DULWLPH$GPLQLVWUDWLRQ:DVKLQJWRQ'&
7RLQVHUWWKHVXEVWDQFHRIWKHSURYLVLRQVRIWKLVFODXVHLQDOOVXEFRQWUDFWVLVVXHGSXUVXDQWWRWKLV FRQWUDFW
)HGHUDO7UDLQHH3URJUDP6SHFLDO3URYLVLRQV
WREHXVHGZKHQDSSOLFDEOH
)('(5$/75$,1((352*5$0
)RUWKH)HGHUDOWUDLQLQJSURJUDPWKHQXPEHURIWUDLQHHVRU DSSUHQWLFHVLV 7KLVVHFWLRQDSSOLHVLIDQXPEHURIWUDLQHHVRUDSSUHQWLFHVLVVSHFLILHGLQWKHVSHFLDOSURYLVLRQV $VSDUWRIWKHSULPHFRQWUDFWRU¶VHTXDORSSRUWXQLW\DIILUPDWLYHDFWLRQSURJUDPSURYLGHRQWKHMREWUDLQLQJWR GHYHORSIXOOMRXUQH\PHQLQWKHW\SHVRIWUDGHVRUMREFODVVLILFDWLRQVLQYROYHG 7KHSULPHFRQWUDFWRUKDVSULPDU\UHVSRQVLELOLW\IRUPHHWLQJWKLVWUDLQLQJUHTXLUHPHQW ,IWKHSULPHFRQWUDFWRUVXEFRQWUDFWVDFRQWUDFWSDUWWKH\VKDOOGHWHUPLQHKRZPDQ\WUDLQHHVRUDSSUHQWLFHV DUHWREHWUDLQHGE\WKHVXEFRQWUDFWRU,QFOXGHWKHVHWUDLQLQJUHTXLUHPHQWVLQHDFKVXEFRQWUDFW :KHUHIHDVLEOHSHUFHQWRIDSSUHQWLFHVRUWUDLQHHVLQHDFKRFFXSDWLRQPXVWEHLQWKHLUVW\HDURI DSSUHQWLFHVKLSRUWUDLQLQJ
3DJHRI
-DQXDU\
]HUR
EXHIBIT E
EXHIBIT 2
/RFDO$VVLVWDQFH3URFHGXUHV0DQXDO ([KLELW*
5HTXLUHG)HGHUDO$LG&RQWUDFW/DQJXDJH
'LVWULEXWHWKHQXPEHURIDSSUHQWLFHVRUWUDLQHHVDPRQJWKHZRUNFODVVLILFDWLRQVRQWKHEDVLVRIWKHSULPH FRQWUDFWRU¶VQHHGVDQGWKHDYDLODELOLW\RIMRXUQH\PHQLQWKHYDULRXVFODVVLILFDWLRQVZLWKLQDUHDVRQDEOH UHFUXLWPHQWDUHD
%HIRUHVWDUWLQJZRUNWKHSULPHFRQWUDFWRUVKDOOVXEPLWWRWKH&LW\&RXQW\RI
1XPEHURIDSSUHQWLFHVRUWUDLQHHVWREHWUDLQHGIRUHDFKFODV VLILFDWLRQ 7UDLQLQJSURJUDPWREHXVHG
7UDLQLQJVWDUWLQJGDWHIRUHDFKFODVVLILFDWLRQ
7KHSULPHFRQWUDFWRUVKDOOREWDLQWKH&LW\&RXQW\RI DSSURYDOI RUWKLVVXEPLWWHG LQIRUPDWLRQEHIRUHWKHSULPHFRQWUDFWRUVWDUWVZRUN7KH&LW\&RXQW\RI FUHGLWV WKHSULPHFRQWUDFWRUIRUHDFKDSSUHQWLFHRUWUDLQHHWKHSULPHFRQWUDFWRUHPSOR\VRQWKHMREZKRLVFXUUHQWO\ HQUROOHGRUEHFRPHVHQUROOHGLQDQDSSURYHGSURJUDP
7KHSULPDU\REMHFWLYHRIWKLVVHFWLRQLVWRWUDLQDQGXSJUDGHPLQRULWLHVDQGZRPHQWRZDUGMRXUQH\PDQVWDWXV 7KHSULPHFRQWUDFWRUVKDOOPDNHHYHU\HIIRUWWRHQUROOPLQRULW\DQGZRPHQDSSUHQWLFHVRUWUDLQHHVVXFKDV FRQGXFWLQJV\VWHPDWLFDQGGLUHFWUHFUXLWPHQWWKURXJKSXEOLFDQGSULYDWHVRXUFHVOLNHO\WR\LHOGPLQRULW\DQG ZRPHQDSSUHQWLFHVRUWUDLQHHVWRWKHH[WHQWWKH\DUHDYDLODEOHZLWKLQDUHDVRQDEOHUHFUXLWPHQWDUHDDQG VKRZWKDWWKH\KDYHPDGHWKHHIIRUWV,QPDNLQJWKHVHHIIRUWVWKHSULPHFRQWUDFWRUVKDOOQRWGLVFULPLQDWH DJDLQVWDQ\DSSOLFDQWIRUWUDLQLQJ
7KHSULPHFRQWUDFWRUVKDOOQRWHPSOR\DVDQDSSUHQWLFHRUWUDLQHHDQHPSOR\HH
,QDQ\FODVVLILFDWLRQLQZKLFKWKHHPSOR\HHKDVVXFFHVVIXOO\FRPSOHWHGDWUDLQLQJFRXUVHOHDGLQJWR MRXUQH\PDQVWDWXVRULQZKLFKWKHHPSOR\HHKDVEHHQHPSOR\HGDVDMRXUQH\PDQ :KRLVQRWUHJLVWHUHGLQDSURJUDPDSSURYHGE\WKH86'HSDUWPHQWRI/DERU%XUHDXRI $SSUHQWLFHVKLSDQG7UDLQLQJ
7KHSULPHFRQWUDFWRUVKDOODVNWKHHPSOR\HHLIWKHHPSOR\HHKDVVXFFHVVIXOO\FRPSOHWHGDWUDLQLQJFRXUVH OHDGLQJWRMRXUQH\PDQVWDWXVRUKDVEHHQHPSOR\HGDVDMRXUQH\PDQ7KHSULPHFRQWUDFWRU¶VUHFRUGVPXVW VKRZWKHHPSOR\HH
VDQVZHUVWRWKHTXHVWLRQV
,QWKHWUDLQLQJSURJUDPWKHSULPHFRQWUDFWRUVKDOOHVWDEOLVKWKHPLQLPXPOHQJWKDQGWUDLQLQJW\SHIRUHDFK FODVVLILFDWLRQ7KH&LW\&RXQW\RI DQG)+:$DSSURYHVDSURJUDP LIRQHRIWKHIROORZLQJLV PHW
,WLVFDOFXODWHGWR
0HHWWKH\RXUHTXDOHPSOR\PHQWRSSRUWXQLW\UHVSRQVLELOLWLHV 4XDOLI\WKHDYHUDJHDSSUHQWLFHRUWUDLQHHIRUMRXUQH\PDQVWDWXVLQWKHFODVVLILFDWLRQ LQYROYHGE\WKHHQGRIWKHWUDLQLQJSHULRG
,WLVUHJLVWHUHGZLWKWKH86'HSDUWPHQWRI/DERU%XUHDXRI$ SSUHQWLFHVKLSDQG7UDLQLQJ DQG LW LV DGPLQLVWHUHG LQ D ZD\ FRQVLVWHQW ZLWK WKH HTXDO HPSOR\PHQW UHVSRQVLELOLWLHV RI )HGHUDODLGKLJKZD\FRQVWUXFWLRQFRQWUDFWV
7KHSULPHFRQWUDFWRUVKDOOREWDLQWKH6WDWH
VDSSURYDOIRUWKHLUWUDLQLQJSURJUDPEHIRUHWKH\VWDUWZRUN LQYROYLQJWKHFODVVLILFDWLRQFRYHUHGE\WKHSURJUDP
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
3DJHRI
-DQXDU\
6WRFNWRQ
6WRFNWRQ
6WRFNWRQ
6WRFNWRQ
EXHIBIT E
EXHIBIT 2
/RFDO$VVLVWDQFH3URFHGXUHV0DQXDO ([KLELW*
5HTXLUHG)HGHUDO$LG&RQWUDFW/DQJXDJH
7KH&LW\&RXQW\RI UHLPEXUVHVWKHSULPHFRQWUDFWRUFHQWVSHU KRXURI WUDLQLQJJLYHQDQHPSOR\HHRQWKLVFRQWUDFWXQGHUDQDSSURYHGWUDLQLQJSURJUDP
)RURQVLWHWUDLQLQJ
)RURIIVLWHWUDLQLQJLIWKHD SSUHQWLFHRUWUDLQHHLVFXUUHQWO\HPSOR\HGRQD)HGHUDODLGSURMHFWDQG SULPHFRQWUDFWRUGRHVDWOHDVWRQHRIWKHIROORZLQJ
D &RQWULEXWHWRWKHFRVWRIWKHWUDLQLQJ
E 3URYLGHWKHLQVWUXFWLRQ WRWKHDSSUHQWLFHRUWUDLQHH F 3D\WKHDSSUHQWLFH
VRUWUDL QHH
VZDJHVGXULQJWKHRIIVLWHWUDLQLQJSHULRG
,IWKHSULPHFRQWUDFWRUF RPSOLHVZLWKWKLVVHFWLRQ (DFKDSSUHQWLFHRUWUDLQHHPXVW
%HJLQWUDLQLQJRQWKHSURMHFWDVVRRQDVIHDVLEOHDIWHUWKHVWDUWRIZRUNLQYROYLQJWKHDSSUHQWLFH V
RUWUDLQHH
VVNLOO
5HPDLQRQWKHSURMHFWDVORQJDVWUDLQLQJRSSRUWXQLWLHVH[LVWLQWKHDSSUHQWLFH VRUWUDLQHH
VZRUN
FODVVLILFDWLRQRUXQWLOWKHDSSUHQWLFHRUWUDLQHHKDVFRPSOHWHGWKHWUDLQLQJSURJUDP 7KHSULPHFRQWUDFWRUVKDOOIXUQLVKWKHDSSUHQWLFHRUWUDLQHHZLWKDFRS\RIWKHSURJUDPWKDWWKHSULPH FRQWUDFWRUZLOOFRPSO\ZLWKLQSURYLGLQJWKHWUDLQLQJ
3DJHRI
-DQXDU\
6WRFNWRQ
EXHIBIT E
EXHIBIT 2
Appendix E of the Title VI Assurances
(US DOT Order 1050.2A)
During the performance of this contract, the contractor, for itself, its assignees, and successors in interest (hereinafter referred to as the “contractor”) agrees to comply with the following nondiscrimination statutes and authorities; including but not limited to:
Pertinent Nondiscrimination Authorities:
x Title VI of the Civ il Rights Act of 1964 (42 U.S.C. § 2000d et seq., 78 stat. 252), (prohibits discrimination on the basis of race, color, national origin); and 49 CFR Part 21.
x The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 U.S.C. § 4601), (prohibits unfair treatment of persons displaced or whose property has been acquired because of Federal or Federal-aid programs and projects);
x Federal-Aid Highway Act of 1973, (23 U.S.C. § 324 et seq.), (prohibits discrimination on the basis of sex);
x Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. § 794 et seq.), as amended, (prohibits discrimination on the basis of disability); and 49 CFR Part 27;
x The Age Discrimination Act of 1975, as amended, (42 U.S.C. § 6101 et seq.), (prohibits discrimination on the basis of age);
x Airport and Airway Improv ement Act of 1982, (49 U.S.C. § 4 71, Section 4 7123), as amended, (prohibits discrimination based on race, creed, color, national origin, or sex);
x The Civ il Rights Restoration Act of 1987, (PL 100-209), (Broadened the scope, coverage and applicability of Title VI of the Civil Rights Act of 1964, The Age Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973, by expanding the definition of the terms “programs or activities” to include all of the programs or activities of the Federal-aid recipients, subrecipients and contractors, whether such programs or activities are Federally funded or not);
x Titles II and III of the Americans with Disabilities Act, which prohibit discrimination on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing entities (42 U.S.C. §§ 12131-12189) as implemented by Department of Transportation regulations at 49 C.F.R. parts 37 and 38;
EXHIBIT 2
x The Federal Aviation Administration's Nondiscrimination statute (49 U.S.C. § 47123) (prohibits discrimination on the basis of race, color, national origin, and sex);
x Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations, which ensures discrimination against minority populations by discouraging programs, policies, and activities with disproportionately high and adverse human health or environmental effects on minority and low-income populations; x Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency, and resulting agency guidance, national origin discrimination includes discrimination because of limited English proficiency (LEP). To ensure compliance with Title VI, you must take reasonable steps to ensure that LEP persons have meaningful access to your programs (70 Fed. Reg. at 74087 to 74100);
x Title IX of the Education Amendments of 1972, as amended, which prohibits you from discriminating because of sex in education programs or activ ities (20 U.S.C. 1681 et seq).
EXHIBIT 2
BOND FOR FAITHFUL PERFORMANCE
KNOW ALL MEN BY THESE PRESENTS:
That we, BEAR ELECTRICAL SOLUTIONS, INC ., a STATE OF CA CORPORATION, as Principal and _____________, a
corporation, organized and existing under the laws of the State of and duly authorized to transact business under the laws of the State of California, as Surety, are held and firmly bound unto the City of Stockton, a municipal corporation, duly created and existing under and by virtue of the laws of the State of California, as obligee, in the just and full sum of ONE MILLION NINETY-TWO THOUSAND NINE HUNDRED EIGHTEEN AND 50/100 DOLLARS ($1,092,918.50), in lawful money of the United States of America (being 100% of the contract price) for the payment whereof well and truly to be made to the said CITY, the said Principal and Surety bind themselves, their successors and assigns, jointly and severally, firmly by these presents.
The condition of the foregoing obligation is such that the above bounded Principal has simultaneously entered into a contract with the CITY, to do and perform the following work, to wit:
BUS RAPID TRANSIT (BRT) PHASE 1-B CORRIDOR IMPROVEMENTS (PROJECT NO. WT15015/FEDERAL PROJECT NO. CML-5008(148)
NOW, THEREFORE, if the above bounded Principal, CONTRACTOR, Company or
Corporation or its Subcontractor, shall well and truly perform the work contracted to be done under said contract, then this obligation to be null and void; otherwise to remain in full force and effect.
No prepayment or delay in payment and no change, extension, addition or alteration of any provision of said contract, or in said plans or specifications agreed to between the said CONTRACTOR and the said CITY, and no forbearance on the part of the said CITY shall operate to relieve any Surety or Sureties from liability on this bond, and consent by said Surety is hereby given, and the said Surety hereby waives the
EXHIBIT 2
2 provisions of Sections 2819 and 2845 of the Civil Code of the State of California.
SIGNED AND SEALED on
APPROVED AS TO SURETY: By
PRINCIPAL
SURETY
APPROVED AS TO FORM & CONTENT:
JOHN M. LUEBBERKE
OFFICE OF THE CITY ATTORNEY
By
ATTORNEY-IN-FACT
By
DEPUTY CITY ATTORNEY
EXHIBIT 2
1 BOND FOR LABOR AND MATERIAL
KNOW ALL MEN BY THESE PRESENTS:
That we , BEAR ELECTRICAL SOLUTIONS, INC ., a STATE OF CA CORPORATION, as Principal and ______________, a
corporation, organized and existing under the laws of the State of and duly authorized to transact business under the laws of the State of California, as Surety, are held and firmly bound unto the City of Stockton, a municipal corporation, duly created and existing under and by virtue of the laws of the State of California, and unto any and all material suppliers, persons, companies, or corporations furnishing materials, provisions, provender or other supplies used in, upon, for or about the performance of the work contemplated to be executed or performed under the contract hereinafter mentioned, and all persons, companies, or corporations renting or hiring teams, or implements of machinery, for or contributing to said work and all persons who perform work or labor upon the same, and all persons who supply both work and materials, and whose claims have not been paid by the contractor, company or corporation in the just and full sum of ONE MILLION NINETY-TWO THOUSAND NINE HUNDRED EIGHTEEN AND 50/100 DOLLARS ($1,092,918.50), in lawful money of the United States of America (being 100% of the contract price) for the payment whereof well and truly to be made to said City of Stockton and to said persons jointly and severally, the said principal and Surety bind themselves, their successors and assigns, jointly and severally, firmly by these presents.
The condition of the foregoing obligations is such that the above bounden Principal has simultaneously entered into a contract of even date herewith, with the CITY, to do and perform the following work, to-wit:
BUS RAPID TRANSIT (BRT) PHASE 1-B CORRIDOR IMPROVEMENTS (PROJECT NO. WT15015/FEDERAL PROJECT NO. CML-5008(148)
NOW, THEREFORE, if the above bounden Principal, CONTRACTOR, Company or Corporation or its Subcontractor, fail to pay for all materials, provisions, provender, or other supplies, or teams, used in, upon, for or about the performance of the work EXHIBIT 2
2 contracted to be done, or for any work or labor done thereon of any kind, the Surety on this bond will pay the same, in an amount not exceeding the sum specified in this bond, provided that any and all claims hereunder shall be filed and proceedings had in connection therewith as required by the provisions of Division 3, Part 4, Title 15, Chapter 5, Article 1 of the Civil Code of California, provided that in case suit is brought upon this bond, a reasonable attorney's fee shall be awarded by the Court to the prevailing party in said suit; said attorney's fee to be fixed as costs in said suit, and to be included in the judgment therein rendered.
No prepayment or delay in payment and no change, extension, addition or alteration of any provision of said contract or in said plans or specifications agreed to between the said CONTRACTOR and the said CITY and no forbearance on the part of the said CITY shall operate to relieve any surety or sureties from liability on this bond, and consent to make such alterations without further notice to or consent by any such surety is hereby given, and the said sureties hereby waive the provisions of Sections 2819 and 2845 of the Civil Code of the State of California.
SIGNED AND SEALED on .
APPROVED AS TO SURETY: By
PRINCIPAL
SURETY
APPROVED AS TO FORM & CONTENT:
JOHN M. LUEBBERKE
OFFICE OF THE CITY ATTORNEY
By
ATTORNEY-IN-FACT
By
DEPUTY CITY ATTORNEY
EXHIBIT 2