Agenda

Waterford City Council
January 19, 2023

Document: Agenda
Meeting: January 19, 2023
Body: Waterford City Council
Original file: 28.3 MB

Text extracted from the city's file for reading and search. Open the original on cityofwaterford.org. That file is the official record.

7KDWVRXQGOHYHOZKLFKLI
FRQVWDQWRYHUDQKRXUH[SRVXUHZRXOGUHVXOWLQWKHVDPHQRLVHGRVHPHDVXUHG LQDQHQYLURQPHQWZKHUHQRLVHOHYHOYDULHV
7KUHVKROGRI3DLQ
$QRLVHOHYHORIG%FDXVHVSDLQ

6(&7,21
5(63216,%,/,7,(6
$ 6XSHUYLVRU'HSDUWPHQW
1RWLI\LQJ&LW\RI:DWHUIRUG0DQDJHPHQWRIQRLVHFRPSODLQWVRUSRWHQWLDO QRLVHKD]DUGV
(QVXULQJWKDWHPSOR\HHVDUHSURYLGHGZLWKKHDULQJSURWHFWRUVZKHQUHTXLUHG (QVXULQJWKDWHPSOR\HHVSURSHUO\XVHDQGFDUHIRUKHDULQJSURWHFWRUV (QVXULQJWKDWQRLVHKD]DUGRXVHTXLSPHQWDUHDVDUHSURSHUO\ODEHOHGRUSRVWHG

JUHDWHUWKDQRUHTXDOWRG%$RSHUDWLQJQRLVHOHYHO

1RWLI\LQJ&LW\RI:DWHUIRUG0DQDJHPHQWRISURFHVVPDWHULDOVRUHTXLSPHQW FKDQJHVWKDWPD\DOWHUQRLVHH[SRVXUHV
(QVXULQJWKDWSRWHQWLDOO\RYHUH[SRVHGHPSOR\HHVDUHSURYLGHGZLWKDEDVHOLQH DXGLRPHWULFKHDULQJWHVWSULRUWRWKHLQLWLDOZRUNDVVLJQPHQWDQGWKHQDQQXDOO\WKHUHDIWHU+LJKQRLVHH[SRVXUHPXVWEHDYRLGHGIRUKRXUVSULRUWRDQH[DP (QIRUFLQJWKHXVHRIKHDULQJSURWHFWRUVRUQRLVHUHGXFWLRQSURFHGXUHVLQWKH GHVLJQDWHGDUHDVDVVLJQPHQWV
(QVXULQJQHZHPSOR\HH+&3RULHQWDWLRQWUDLQLQJDQGDQQXDOUHIUHVKHU+&3 WUDLQLQJRIHPSOR\HHVDUHSURYLGHGWRDOOSRWHQWLDOO\RYHUH[SRVHGSHUVRQQHO

3RVWFRS\RIRFFXSDWLRQDOQRLVHUHJXODWLRQ
&DOLIRUQLD&RGHRI5HJXODWLRQ
7LWOH6HFWLRQV
$UWLFOH

0DLQWDLQLQJWKHIROORZLQJUHFRUGV
VHH5HFRUG.HHSLQJ

D 1DPHDQGMREFODVVLILFDWLRQRIWKHHPSOR\HHLQWKH+&3E $XGLRPHWULFWHVWUHVXOWVIURPRXU2FFXSDWLRQDO+HDOWK3URYLGHUF 1RLVHH[SRVXUHDVVHVVPHQWVIURP&LW\RI:DWHUIRUG0DQDJHPHQWG 7UDLQLQJGRFXPHQWDWLRQ % &LW\RI:DWHUIRUG'HSDUWPHQW+HDGV0DQDJHUV
$GPLQLVWHULQJWKH+HDULQJ&RQVHUYDWLRQ3URJUDP :RUNSODFHDQGHPSOR\HHQRLVHHYDOXDWLRQ
D 1RLVHDVVHVVPHQWWRGHWHUPLQHLIDGPLQLVWUDWLYHDQGHQJLQHHULQJ FRQWUROVDUHQHHGHGDQGKRZWKH\VKRXOGEHLPSOHPHQWHG E ,GHQWLILFDWLRQRIDUHDVRUSURFHVVHVWKDWUHTXLUHQRLVHDEDWHPHQWDQGRU SRVWLQJ

F (YDOXDWLRQDQGSHULRGLFUHHYDOXDWLRQRIHPSOR\HHV
H[SRVXUHE\MRE
FODVVLILFDWLRQWRGHWHUPLQHZKLFKMREWLWOHVQHHGWREHLQFOXGHGLQWKH+HDULQJ&RQVHUYDWLRQ3URJUDP 0DLQWDLQLQJUHFRUGVRIHPSOR\HHH[SRVXUHPHDVXUHPHQWV 3URYLGLQJFRPSUHKHQVLYHDQQXDOWUDLQLQJRQ+&3DQG+3'V $VVLVWHPSOR\HHVLQVHOHFWLQJWKHSURSHU+3'VDQGSURYLGHLQVWUXFWLRQRQ WKHLUXVH
& (PSOR\HHV
:HDULQJKHDULQJSURWHFWLRQGHYLFHVDQGIROORZLQJDQ\QRLVHUHGXFWLRQ SURFHGXUHVDVUHTXLUHG
6WRULQJDQGPDLQWDLQLQJ+3'VLQDFOHDQDQGVDQLWDU\PDQQHU 5HSRUWLQJQRLVHKD]DUGVDQGKHDULQJSURWHFWRUSUREOHPVWRWKHLUVXSHUYLVRU $WWHQGLQJUHTXLUHGWUDLQLQJVHVVLRQVRQ+&3 ' &LW\RI:DWHUIRUG2FFXSDWLRQDO+HDOWK3URYLGHU

6XWWHU*RXOG0HGLFDO

3URYLGLQJEDVHOLQHDQQXDODQGSRVWHPSOR\PHQWDXGLRPHWULFWHVWLQJ 3HUIRUPLQJDXGLRJUDPHYDOXDWLRQV &RPPXQLFDWHDQ\LGHQWLILHGZRUNUHODWHG RUDJJUDYDWHGE\RFFXSDWLRQDO
QRLVHH[SRVXUH
VWDQGDUGWKUHVKROGVKLIWVWRWKHHPSOR\HHKLVKHUVXSHUYLVRUDQG&LW\RI:DWHUIRUG0DQDJHPHQW LIUHSRUWDEOHXQGHU7LWOH&&5

0DLQWDLQLQJDXGLRPHWULFWHVWUHFRUGV 5HFRPPHQGLQJDSSURSULDWHKHDULQJSURWHFWRUVDQGILWWLQJDVQHHGHG ( &LW\RI:DWHUIRUG+XPDQ5HVRXUFHV5LVN0DQDJHPHQW 6KDOOUHFRUGFDVHVRIRFFXSDWLRQDOKHDULQJORVVLIWKHFXUUHQWHPSOR\HH¶V FXUUHQWDXGLRJUDPUHYHDOVDZRUNUHODWHG6WDQGDUG7KUHVKROG6KLIW 676
RI
GHFLEHOVRUPRUH
DYHUDJHGDWDQG+]
DERYHDXGLRPHWULF]HURLQWKHVDPHHDURQWKH&DO26+$)RUP RUHTXLYDOHQW
>7LWOH&&5@

6(&7,21
352*5$0&20321(176
$ 1RLVH6XUYH\V0RQLWRULQJ
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
(PSOR\HHV
QRLVHH[SRVXUHVKDOOEHUHDVVHVVHGSHULRGLFDOO\DVQHHGHG LH
IROORZLQJFKDQJHVLQSURFHVVHVMREUHVSRQVLELOLWLHVHTXLSPHQWRUZKHQD676LVGHWHUPLQHG
% $XGLRPHWULF7HVWLQJ
$XGLRPHWULFWHVWLQJSURJUDPVKDOOEHPDQDJHGE\RXU2FFXSDWLRQDO+HDOWK 3URYLGHU
3HUIRUPLQJDXGLRPHWULFGDWDEDVHDQDO\VLV
$'%$
SURFHGXUHVDVGHILQHGLQ
$16,6WDQGDUG6

WRDVVHVVWKHHIIHFWLYHQHVVRIKHDULQJFRQVHUYDWLRQHIIRUWV LHLVKHDULQJORVVEHLQJSUHYHQWHG

%DVHOLQHDXGLRJUDPVVKDOOEHSUHFHGHGE\DWOHDVWKRXUVZLWKRXWH[SRVXUH WRZRUNSODFHQRLVH7KLVUHTXLUHPHQWPD\EHPHWE\ZHDULQJKHDULQJSURWHFWRUVZKLFKZLOOUHGXFHWKHHPSOR\HH VH[SRVXUHWRDVRXQGOHYHORIG%$RUEHORZ
%DVHOLQHDXGLRJUDPVVKDOOEHSURYLGHGIRUWKHHPSOR\HHVZKRVHMRE FODVVLILFDWLRQDUHLQFOXGHGLQWKH+HDULQJ&RQVHUYDWLRQ3URJUDPXSRQHPSOR\PHQWDQGDQQXDOO\WKHUHDIWHU (YDOXDWLRQRIDXGLRJUDPVVKDOOEHGRQHLQFRPSOLDQFHZLWK&&57LWOH VHFWLRQ

G

(PSOR\HHVVKDOOEHLQIRUPHGLQZULWLQJZLWKLQGD\VZKHQDQDXGLRJUDP LQGLFDWHVDVWDQGDUGWKUHVKROGVKLIWZKLFKLVGHWHUPLQHGWREHZRUNUHODWHG
& +HDULQJ3URWHFWLRQ'HYLFHV
(PSOR\HHVH[SRVHGWRQRLVHOHYHOVDWRUDERYHDQKRXU7:$RI G%$
VKDOOZHDUKHDULQJSURWHFWRUV(PSOR\HHVH[SRVHGWRQRLVHOHYHOVDWRUDERYHWKHDFWLRQOHYHORIDQKRXU7:$RIG%$VKDOOZHDUKHDULQJSURWHFWRUVLIWKH\KDYHH[SHULHQFHGDGRFXPHQWHGVWDQGDUGWKUHVKROGVKLIWRUKDYHQRWREWDLQHGDEDVHOLQHDXGLRJUDP +HDULQJSURWHFWRUVVKDOOEHDYDLODEOHWRDOOHPSOR\HHVH[SRVHGWRQRLVHOHYHOV DWRUDERYHWKHDFWLRQOHYHORIG%$KU7:$DWQRFRVWWRWKHHPSOR\HHV (PSOR\HHVVKDOOEHJLYHQWKHRSSRUWXQLW\WRVHOHFWWKHLUKHDULQJSURWHFWRUV IURPDYDULHW\RIVXLWDEOHW\SHV
3URSHULQLWLDOILWWLQJDQGVXSHUYLVLRQRIWKHFRUUHFWXVHRIKHDULQJSURWHFWRUV VKDOOEHSURYLGHG
+HDULQJSURWHFWRUDWWHQXDWLRQVKDOOEHHYDOXDWHGIRUWKHVSHFLILFQRLVH HQYLURQPHQWVLQZKLFKWKHSURWHFWRUZLOOEHXVHG7KHPHWKRGVXVHGIRUPHDVXULQJDWWHQXDWLRQVKDOOEHRQHRIWKHIRXUPHWKRGVGHVFULEHGLQ&&57LWOH6HFWLRQ DQG$SSHQGL[(
+HDULQJSURWHFWRUVPXVWDWWHQXDWHWKHQRLVHOHYHOWRDQKRXU7:$RI
G%$RUOHVV
)RUHPSOR\HHVZKRKDYHH[SHULHQFHGDVWDQGDUGWKUHVKROGVKLIWWKH DWWHQXDWLRQPXVWUHGXFHWKHVRXQGOHYHOWRDQKRXU7:$RIG%$RUOHVV 5HHYDOXDWLRQRIKHDULQJSURWHFWRUVVKDOOEHGRQHZKHQHYHUDZRUNSODFHQRLVH OHYHOLQFUHDVHUHQGHUVWKHKHDULQJSURWHFWRU
VDWWHQXDWLRQLQDGHTXDWH

:RUNSODFHVLQZKLFKWKHQRLVHOHYHOH[FHHGVG%$VKDOOKDYHVLJQVSRVWHG 6LJQVVKDOOUHDG+HDULQJ3URWHFWRUV5HTXLUHG
' (PSOR\HH(GXFDWLRQDQG7UDLQLQJ
$QQXDOWUDLQLQJLVUHTXLUHGIRUDOOHPSOR\HHVH[SRVHGWRQRLVHDWRUDERYHDQ KRXU7:$RIG%$
7KHWUDLQLQJVKDOOFRYHUWKHIROORZLQJLQIRUPDWLRQ

D 7KHHIIHFWVRIQRLVHRQKHDULQJE 7KHSXUSRVHDGYDQWDJHVGLVDGYDQWDJHVDQGDWWHQXDWLRQRIYDULRXVW\SHV RIKHDULQJSURWHFWRUV
F ,QVWUXFWLRQRISURSHUILWWLQJDQGFDUHRISURWHFWRUVG 7KHSXUSRVHDQGSURFHGXUHVRIDXGLRPHWULFWHVWLQJ
&RSLHVRIWKHRFFXSDWLRQDOQRLVHUHJXODWLRQ
&&57LWOH6HFWLRQ

$UWLFOH
VKDOOEHDYDLODEOHWRDIIHFWHGHPSOR\HHVDQGWKHLUUHSUHVHQWDWLYHV$FRS\RIWKHUHJXODWLRQVKDOODOVREHSRVWHGLQWKHZRUNSODFH $Q\LQIRUPDWLRQDOPDWHULDOVSHUWDLQLQJWRWKLVVWDQGDUGWKDWDUHVXSSOLHGE\ 26+$VKDOOEHDYDLODEOHWRWKHDIIHFWHGHPSOR\HHV
( 5HFRUG.HHSLQJ
1RLVHH[SRVXUHPHDVXUHPHQWUHFRUGVVKDOOEHUHWDLQHGIRUDWOHDVW\HDUVE\ +XPDQ5HVRXUFHV5LVN0DQDJHPHQW
$XGLRPHWULFWHVWUHFRUGVSURYLGHGE\RXU2FFXSDWLRQDO+HDOWK3URYLGHU VKRXOGEHPDLQWDLQHGE\GHSDUWPHQWVZLWKHPSOR\HHVHQUROOHGLQWKH+HDULQJ&RQVHUYDWLRQ3URJUDPDQGVKDOOLQFOXGH D 7KHQDPHDQGMREFODVVLILFDWLRQRIWKHHPSOR\HHE 7KHGDWHRIWKHDXGLRJUDPF 7KHH[DPLQHU VQDPHG 7KHHPSOR\HH
VPRVWUHFHQWQRLVHH[SRVXUHDVVHVVPHQWH 7KHGDWHRIWKHODVWDFRXVWLFRUH[KDXVWLYHFDOLEUDWLRQRIWKHDXGLRPHWHU DQGWKHPHDVXUHPHQWRIWKHEDFNJURXQGVRXQGSUHVVXUHOHYHOVLQWKHDXGLRPHWULFWHVWURRPV 5HFRUGVRIDXGLRPHWULFWHVWUHVXOWVVKDOOEHUHWDLQHGIRUWKHGXUDWLRQRIWKH DIIHFWHGHPSOR\HH
VHPSOR\PHQW
5HFRUG /RFDWLRQ 5HWHQWLRQ7LPH
0HGLFDO
(YDOXDWLRQVDQG$XGLRJUDPV
2FFXSDWLRQDO+HDOWK3URYLGHU
$VORQJDVHPSOR\HHLVHQUROOHGLQ+&3
0HGLFDO(YDOXDWLRQ5HVXOWV
6XSHUYLVRU'HSDUWPHQW $VORQJDVHPSOR\HHLV
HQUROOHGLQ+&3
+HDULQJ&RQVHUYDWLRQ3URJUDP0DQXDO
(PSOR\HH0DQXDODQGZHEVLWH 2QJRLQJ
1RLVH6XUYH\VDQG(PSOR\HH1RLVH0RQLWRULQJ
&LW\RI:DWHUIRUG0DQDJHPHQW
DQGRU6XSHUYLVRU'HSDUWPHQW
$WOHDVW\HDUV
7UDLQLQJ5HFRUGV 6XSHUYLVRUDQGRU
'HSDUWPHQW
$WOHDVW\HDUV
&,7<2):$7(5)25'
5(63,5$725<3527(&7,21
352*5$0
&LW\RI:DWHUIRUG
(6WUHHW32%R[

:DWHUIRUG&$

)D[
$SULO

&LW\RI:DWHUIRUG
5HVSLUDWRU\3URWHFWLRQ 3URJUDP
7DEOHRI&RQWHQWV
6FRSH «««««««««««««««««««««««« 5HVSRQVLELOLW\ «««««««««««««««««««« +D]DUG$VVHVVPHQW«««««««««««««««««« +D]DUG&RQWURO «««««««««««««««« 2SHUDWLQJ3URFHGXUHV««««««««««««««««« $6HOHFWLRQDQG,VVXDQFH««««««««««««« %7UDLQLQJDQG (GXFDWLRQ«««««««««««« &)LW&KHFNV7HVWLQJ«««««««««««««« ',QVSHFWLRQDQG0DLQWHQDQFH«««««««««« (6DQLWDWLRQDQG6WRUDJH««««««««««««« 0HGLFDO6XUYHLOODQFH««««««««««««««««« 3URJUDP6XUYHLOODQFHDQG(YDOXDWLRQ«««««««««« 5HFRUGNHHSLQJ««««««««««««««««««««

$SSHQGL[$± 6HOHFWLRQDQG8VHRI5HVSLUDWRUV«««««« $SSHQGL[%± ,QIRUPDWLRQIRU9ROXQWDU\8VHRI5HVSLUDWRUV $SSHQGL[&± (PSOR\HH5HVSLUDWRU$VVLJQPHQW5HFRUG«« $SSHQGL['± 5HVSLUDWRU0HGLFDO(YDOXDWLRQ4XHVWLRQQDLUH
5(63,5$725<3527(&7,21352*5$0
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

7KLVSURJUDPGRHVQRWFRYHUWKHXVHRIUHVSLUDWRU\SURWHFWLRQIRUDWPRVSKHUHVLPPHGLDWHO\GDQJHURXVWROLIHRUKHDOWKDVGHILQHGE\6HFWLRQ E
7KLVSURJUDPGRHVQRWDSSO\WRWKRVHHPSOR\HHVZKRVHRQO\XVHRIUHVSLUDWRUVLQYROYHVWKHYROXQWDU\XVHRIILOWHULQJIDFHSLHFHV GXVWPDVNV

5(63216,%,/,7<7KH3XEOLF:RUNV'LUHFWRULVGHVLJQDWHGDVWKHSURJUDPDGPLQLVWUDWRU$GPLQLVWUDWLYHUHVSRQVLELOLWLHVLQFOXGH
,GHQWLI\DUHDVUHTXLULQJWKHXVHRIUHVSLUDWRU\SURWHFWLYHHTXLSPHQW $VVXUHDOOSHUVRQQHOUHFHLYHDGHTXDWHWUDLQLQJDQGDUHILWWHVWHGWRWKHLU UHVSLUDWRUV
$VVXUHWKDWDOOHTXLSPHQWZLWKLQWKHZRUNJURXSLVSURSHUO\XVHGVHUYLFHG DQGPDLQWDLQHG
$VVXUHDOOHPSOR\HHVZKRDUHUHTXLUHG
RUPD\EHUHTXLUHG
WRZHDU
UHVSLUDWRU\SURWHFWLYHHTXLSPHQWKDVEHHQPHGLFDOO\HYDOXDWHGDQGIRXQGWR EHSK\VLFDOO\FDSDEOHWRXVHUHTXLUHGHTXLSPHQW
3URYLGHSURSHUUHVSLUDWRU\SURWHFWLRQDWQRFRVWWRWKHHPSOR\HH ,PSOHPHQWDOOIHDVLEOHDGPLQLVWUDWLYHDQGHQJLQHHULQJFRQWUROVWRUHGXFHWKH H[SRVXUHOHYHODVPXFKDVSRVVLEOH

(PSOR\HHUHVSRQVLELOLWLHVLQFOXGH

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
DQGRUDFHLOLQJRUSHDNFRQFHQWUDWLRQ7KH3URJUDP$GPLQLVWUDWRUVKDOODOVRFRQVXOWHPSOR\HHVZKRXVHUHVSLUDWRUVWRDVVHVVWKHLUYLHZVRQWKHHIIHFWLYHQHVVRIWKHSURJUDPDQGWRLGHQWLI\SUREOHPV+$=$5'&21752/5HJXODWLRQVUHTXLUHSUHYHQWLRQRIZRUNHUH[SRVXUHWRKDUPIXOOHYHOVRIDLUERUQHFRQWDPLQDQWVE\LPSOHPHQWLQJWKHIROORZLQJFRQWUROV
(QJLQHHULQJ&RQWUROV7KLVW\SHRIFRQWUROLQFOXGHV
VXEVWLWXWLRQRIDOHVVWR[LF
VXEVWDQFHLVRODWLRQHQFDSVXODWLRQRUHQFORVXUHRIWKHSURFHVVDQGRUYHQWLODWLRQ $GPLQLVWUDWLYH&RQWUROV7KLVW\SHRIFRQWUROPD\LQYROYHOLPLWLQJWKHWLPHDQ HPSOR\HHLVH[SRVHGE\OLPLWLQJWKHWLPHSHUIRUPLQJWKHWDVN(QJLQHHULQJDQGDGPLQLVWUDWLYHFRQWUROVVKDOOEHLPSOHPHQWHGWRUHGXFHH[SRVXUHZKHQHYHUIHDVLEOH5HVSLUDWRU\SURWHFWLRQZLOOEHXVHGWRFRQWURODQHPSOR\HH¶VH[SRVXUHRQO\ZKHQHQJLQHHULQJFRQWUROVDUHEHLQJLQVWDOOHGRULPSOHPHQWHGRUZKHQHQJLQHHULQJRUDGPLQLVWUDWLYHFRQWUROVIDLOWRDGHTXDWHO\FRQWUROWKHHPSOR\HH¶VH[SRVXUH 23(5$7,1*352&('85(6(DFKHPSOR\HHZKRXVHVUHVSLUDWRU\SURWHFWLRQZLOOIROORZWKHVHRSHUDWLQJSURFHGXUHV7KHSURFHGXUHVLQFOXGHSURYLVLRQVIRUVHOHFWLRQLQVWUXFWLRQDQGWUDLQLQJFOHDQLQJLQVSHFWLRQDQGPDLQWHQDQFH
$ 6(/(&7,21$1',6685$1&(
$OOUHVSLUDWRU\SURWHFWLYHHTXLSPHQWVKDOOEHDSSURYHGE\0LQH6DIHW\DQG+HDOWK$GPLQLVWUDWLRQ 06+$
DQG1DWLRQDO,QVWLWXWHRI2FFXSDWLRQDO6DIHW\DQG+HDOWK 1,26+
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
(PSOR\HHVZKRDUHUHTXLUHGWRZHDUUHVSLUDWRU\SURWHFWLYHHTXLSPHQWZLOOUHFHLYHWUDLQLQJ7UDLQLQJZLOOEHVWUXFWXUHGDQGGRFXPHQWHGXQGHUWKHGLUHFWLRQRIWKH3URJUDP$GPLQLVWUDWRU7KHWUDLQLQJVKDOOEHUHSHDWHGDQQXDOO\WRHQVXUHHPSOR\HHVKDYHWKHSURSHUXQGHUVWDQGLQJUHJDUGLQJUHVSLUDWRU\SURWHFWLRQDQGWRHQVXUHWKH\FDQGHPRQVWUDWHNQRZOHGJHDQGVNLOOVVSHFLILFWRWKHKD]DUGVDQGXVHVRIUHVSLUDWRUV7KHWUDLQLQJVKDOOLQFOXGH
$QH[SODQDWLRQRIUHVSLUDWRU\KD]DUGVDQGH[SRVXUH 'LVFXVVLRQRIZK\UHVSLUDWRU\SURWHFWLRQLVQHHGHG 'LVFXVVLRQRIWKHIXQFWLRQFDSDELOLWLHVDQGOLPLWDWLRQIRUWKH HTXLSPHQW
'LVFXVVLRQRIWKHSURSHUFDUHDQGPDLQWHQDQFHRIHTXLSPHQW ([SODQDWLRQRIWKHHIIHFWVRISHUVRQDOIDFWRUVVXFKDVH\HZHDUIDFLDO KDLUDQGSK\VLFDOFDSDELOLWLHV
([SODQDWLRQRIPHGLFDOOLPLWDWLRQV ([SODQDWLRQDQGGRFXPHQWDWLRQRIUHTXLUHGILWWHVWLQJ 'LVFXVVLRQRIHPHUJHQF\XVHVLWXDWLRQV $Q\RWKHUDSSOLFDEOHLQIRUPDWLRQ
& ),7&+(&.67(67,1*
)LWFKHFNVWHVWLQJDUHHVVHQWLDOWRHQVXUHWKDWDUHVSLUDWRUIRUPVDJRRGVHDOZLWKWKHZHDUHU¶VIDFH7KLVSUHYHQWVFRQWDPLQDQWVIURPOHDNLQJLQWRWKHPDVN
:KHQWKHHPSOR\HHLVLVVXHGDUHVSLUDWRUKHVKHZLOOEHDEOHWRWU\RQDYDULHW\RIVL]HVWRILQGRQHZLWKDFRPIRUWDEOHILW6HYHUDOWHVWVDUHWKHQSHUIRUPHGWRGHWHUPLQHSURSHUILW(PSOR\HHVVKDOOEHSURYLGHGWKHRSSRUWXQLW\WRZHDUWKHUHVSLUDWRULQQRUPDODLUIRUDQDGHTXDWHIDPLOLDULW\SHULRG7KHIROORZLQJILWFKHFNVVKDOOEHFRQGXFWHGHDFKWLPHDWLJKWILWWLQJUHVSLUDWRULVXVHG1HJDWLYHSUHVVXUHFKHFN 7KHZHDUHUFORVHVRIIWKHUHVSLUDWRULQOHW

FDUWULGJHV
DQGLQKDOHV$YDFXXPDQGSDUWLDOLQZDUGFROODSVHRIWKHPDVNVKRXOGUHVXOW,IDYDFXXPFDQQRWEHPDLQWDLQHGIRUDWOHDVWVHFRQGVUHDGMXVWWKHPDVNDQGWU\DJDLQ3RVLWLYHSUHVVXUHFKHFN 7KHZHDUHUFORVHVRIIWKHH[KDODWLRQYDOYHDQGEUHDWKHVRXWJHQWO\$LUZLOOHVFDSHWKURXJKDQ\JDSVLQWKHVHDO7KHZHDUHUVKRXOGEHFDUHIXOQRWWRH[KDOHWRRVWURQJO\VRDVQRWWRIRUFHOHDNDJH)LWWHVWLQJZLWKDWHVWDWPRVSKHUHZLOODOVREHFRQGXFWHGE\LQWURGXFLQJDWHVWVXEVWDQFH LVRDP\ODFHWDWHDQGRULUULWDQWVPRNH
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
&RUUHFWLYHH\HZHDU

JODVVHV
PD\FDXVHOHDNDJHZKHUHWKHPDVNVHDO
SDVVHVRYHUWKHWHPSOHEDU(PSOR\HHVZKRDUHDVVLJQHGUHVSLUDWRU\SURWHFWLYHHTXLSPHQWDQGUHTXLUHSUHVFULSWLRQJODVVHVPD\UHTXLUH VSHFLDOHTXLSPHQWWRDFFRPPRGDWHWKHJODVVHV
LHJODVVLQVHUWV

)DFLDOIHDWXUHV1RUPDOYDULDWLRQVLQVL]HDQGVKDSHPD\DIIHFWWKH DELOLW\RIWKHPDVNWRVHDOSURSHUO\
)DFLDOKDLU)DFLDOKDLULQWKHUHVSLUDWRUVHDODUHDZLOOUHGXFHWKH DELOLW\RIWKHPDVNWRREWDLQDSURSHUVHDO1RIDFLDOKDLUZLOOEHDOORZHGDORQJWKHVHDODUHDVRIWKHPDVN )LWWHVWLQJZLOOEHDGPLQLVWHUHGDQGGRFXPHQWHGDVSDUWRIWKHUHVSLUDWRU\SURWHFWLRQWUDLQLQJ
' ,163(&7,21$1'0$,17(1$1&(
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
5HVSLUDWRUVDQGFDUWULGJHVPXVWEHDSSURYHGIRUWKHKD]DUGRXV DWPRVSKHUHIRUZKLFKWKHZRUNHUZLOOEHH[SRVHG
5HSDLUVKDOOEHFRQGXFWHGE\DTXDOLILHGSHUVRQ
$OOUHTXLUHGLQVSHFWLRQVDQGPDLQWHQDQFHSURFHGXUHVIRUUHVSLUDWRU\HTXLSPHQWZLOOEHWKHUHVSRQVLELOLW\RIHDFKHPSOR\HHIRUZKRPWKH HTXLSPHQWLVDVVLJQHG7KHSURJUDPDGPLQLVWUDWRUZLOOEHUHVSRQVLEOHIRURUGHULQJSDUWVDQGHQVXULQJWKDWPDQGDWRU\LQVSHFWLRQVDQGPDLQWHQDQFHLVGRFXPHQWHG ( 6$1,7$7,21$1'6725$*(
$IWHUUHPRYLQJILOWHUVDQGVWUDSVWKHUHVSLUDWRUVKDOOEHZDVKHGLQDPLOGVRDSVROXWLRQRULPPHUVHGLQDVDQLWDU\VROXWLRQUHFRPPHQGHGE\WKHPDQXIDFWXUHUIRUDWOHDVWWZRPLQXWHV7KHUHVSLUDWRUVKRXOGEHDLUGULHG3UHSDFNDJHUHVSLUDWRUZLSHVPD\EHXVHGIRUPDLQWDLQLQJIUHVKQHVVEHWZHHQFOHDQLQJV5HVSLUDWRU\HTXLSPHQWVKDOOQRWEHSDVVHGRQIURPRQHSHUVRQWRDQRWKHUXQWLOLWKDVEHHQFOHDQHGDQGVDQLWL]HG5HVSLUDWRUVZLOOEHVWRUHGWRSURWHFWDJDLQVWGXVWVXQOLJKWH[WUHPHWHPSHUDWXUHVH[FHVVLYHPRLVWXUHRUGDPDJLQJFKHPLFDOVZKHQQRWLQXVH
0(',&$/6859(,//$1&((PSOR\HHVZKRDUHUHTXLUHGWRZHDUUHVSLUDWRU\SURWHFWLRQVKDOOKDYHDPHGLFDOHYDOXDWLRQIURPDSK\VLFLDQDQGVKDOOFRPSOHWHWKH5HVSLUDWRU0HGLFDO(YDOXDWLRQ4XHVWLRQQDLUH $SSHQGL['
7KLVUHTXLUHPHQWVKDOODOVRDSSO\WRWKHYROXQWDU\XVHRIUHVSLUDWRUV7KHSK\VLFLDQVKDOOSURYLGHDZULWWHQVWDWHPHQWWKDWLQGLFDWHVWKHHPSOR\HH¶VSK\VLFDODELOLW\WRVDIHO\ZHDUUHVSLUDWRU\SURWHFWLYHHTXLSPHQW0HGLFDOHYDOXDWLRQVFRQGXFWHGE\DOLFHQVHGSK\VLFLDQVKDOOEHUHTXLUHGLQLWLDOO\DQGSXUVXDQWWRWKHIROORZLQJ
$QHPSOR\HHUHSRUWVPHGLFDOVLJQVRUV\PSWRPVWKDWDUHUHODWHGWRDELOLW\WR XVHDUHVSLUDWRU
$SK\VLFLDQRURWKHUOLFHQVHGKHDOWKFDUHSURIHVVLRQDOVXSHUYLVRURUWKH UHVSLUDWRU3URJUDP$GPLQLVWUDWRULQIRUPVWKHHPSOR\HUWKDWDQHPSOR\HHQHHGVWREHUHHYDOXDWHG ,QIRUPDWLRQIURPWKHUHVSLUDWRU\SURWHFWLRQSURJUDPLQFOXGLQJREVHUYDWLRQV PDGHGXULQJILWWHVWLQJDQGSURJUDPHYDOXDWLRQLQGLFDWHVDQHHGIRUHPSOR\HHUHHYDOXDWLRQ RU
$FKDQJHRFFXUVLQZRUNSODFHFRQGLWLRQV
HJSK\VLFDOZRUNHIIRUW
SURWHFWLYHFORWKLQJDQGWHPSHUDWXUH
WKDWPD\UHVXOWLQDVXEVWDQWLDOLQFUHDVHLQWKHSK\VLRORJLFDOEXUGHQSODFHGRQDQHPSOR\HH ,IFKDQJHVLQDQHPSOR\HH¶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

5(&25'.((3,1*7KHIROORZLQJUHFRUGVDUHWREHPDLQWDLQHGE\WKH3URJUDP$GPLQLVWUDWRU
7KHTXDOLWDWLYHILWWHVW 'DWHRIHPSOR\HHWUDLQLQJGHVFULSWLRQRIDJHQGDDQGURVWHURIHPSOR\HHV WUDLQHG
5HVSLUDWRU$VVLJQPHQW5HFRUG
$SSHQGL[&
'RFXPHQWDWLRQRILQMXULHVLQYROYLQJWKHXVHRIUHVSLUDWRUV
$33(1',;$
6(/(&7,21$1'86(2)5(63,5$7256
,GHQWLILFDWLRQRI&RQWDPLQDQWV([SRVXUH/HYHOV7KH&LW\KDVDVVHVVHGWKHZRUNHQYLURQPHQWWRLGHQWLI\PDWHULDOVRUSURFHVVHVWKDWPD\SRVHDQLQKDODWLRQKD]DUG7KHIROORZLQJFRQWDPLQDQWVKDYHEHHQLGHQWLILHGWKDWPD\UHTXLUHUHVSLUDWRU\SURWHFWLRQ &RQWDPLQDQW $QWLFLSDWHG([SRVXUH/HYHO $VEHVWRV

SDUWLFXODWH
EHORZ3(/RIIFF /HDG

SDUWLFXODWH
EHORZ3(/RIPJPñ6HOHFWLRQRI5HVSLUDWRUV)RU3URWHFWLRQ$JDLQVW3DUWLFXODWHV7KHGLVWULFWVKDOOVXSSO\DLUSXULI\LQJUHVSLUDWRUVHTXLSSHGZLWKDKLJKHIILFLHQF\SDUWLFXODWHDLU +(3$

3
ILOWHUFHUWLILHGIRUVXFKXVHE\1,26+&DUWULGJHVVKDOOEHFKDQJHGZKHQWKHXVHUQRWLFHVDUHVLVWDQFHLQEUHDWKLQJ)RUSURWHFWLRQDJDLQVWJDVHVDQGRUYDSRUVWKH&LW\VKDOO VXSSO\DQDLUSXULI\LQJUHVSLUDWRUWKDWLVHTXLSSHGZLWKDQHQGRIVHUYLFHOLIHLQGLFDWRU (6/,
FHUWLILHGE\1,26+RULPSOHPHQWWKHFDUWULGJHFKDQJHVFKHGXOHUHFRPPHQGHGE\WKHPDQXIDFWXUHU(PSOR\HHVZLOOEHSURYLGHGSRZHUHGDLUSXULI\LQJUHVSLUDWRUV 3$35V
ZKHQH[SRVXUHVZDUUDQWVXFKSURWHFWLRQRUZKHQHPSOR\HHVDUHXQDEOHWRZHDUDQHJDWLYHSUHVVXUHUHVSLUDWRUIRUSK\VLFDORUPHGLFDOUHDVRQV
$33(1',;%
,1)250$7,21)2592/817$5<86(2)5(63,5$7256
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¶VUHVSLUDWRU
1RWH
$XWKRULW\FLWHG
6HFWLRQ/DERU&RGH5HIHUHQFH
6HFWLRQ/DERU&RGH$SSHQGL['WR6HFWLRQ 0DQGDWRU\
,QIRUPDWLRQIRU(PSOR\HHV8VLQJ
5HVSLUDWRUV:KHQ1RW5HTXLUHG8QGHUWKH6WDQGDUGBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB BBBBBBBBBBBBBBBBBBBBBBBB(PSOR\HH6LJQDWXUH 'DWH
$33(1',;&
(03/2<((5(63,5$725$66,*10(175(&25'
(PSOR\HH1DPH
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB -RE7LWOH BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 7\SHRI5HVSLUDWRU$VVLJQHG BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB &RQGLWLRQVRI5HVSLUDWRU8VH 5HVSLUDWRU\3URWHFWLRQLVUHTXLUHGXQGHUWKHFRQGLWLRQV VSHFLILHGLQWKH,QMXU\DQG,OOQHVV3UHYHQWLRQ3URJUDP5HVSLUDWRU\3URWHFWLRQ3URJUDPDQGDVGLUHFWHGE\WKH3URJUDP$GPLQLVWUDWRU (VWLPDWHGIUHTXHQF\RIFDUWULGJHRUILOWHULQJIDFHSLHFHUHSODFHPHQW
D )LOWHULQJIDFHSLHFHVRUGXVWPDVNVVKDOOEHGLVFDUGHGDWWKHHQGRIWKH ZRUNVKLIWRUZKHQFRQWDPLQDWHGEH\RQGXVHZKLFKHYHULVVRRQHU E &DUWULGJHVVKDOOEHUHSODFHGZKHQWKHPD[LPXPXVHWLPHLVUHDFKHGDWWKH HQGRIHDFKVKLIWRUZKHQEUHDNWKURXJKLVGHWHFWHGZKLFKHYHULVVRRQHU F ,IWKHFDUWULGJHRUILOWHULQWHJULW\LVLQTXHVWLRQWKHQUHSODFHWKHFDUWULGJHV DQGRUILOWHUVSULRUWRXVH
7KLVHPSOR\HHLVSK\VLFDOO\DEOHWRZHDUDQHJDWLYHRUSRVLWLYHSUHVVXUHUHVSLUDWRUDV GHWHUPLQHGE\D3K\VLFLDQRU/LFHQVHG+HDOWK&DUH3URIHVVLRQDO,QIRUPDWLRQUHJDUGLQJHPSOR\HHPHGLFDOILWQHVVWRXVHDUHVSLUDWRULVNHSWZLWKWKHHPSOR\HHVPHGLFDOUHFRUGV (PSOR\HHLQIRUPHGRIKD]DUGV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB (PSOR\HHWUDLQHGLQHPHUJHQF\SURFHGXUHV BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
(PSOR\HHWUDLQHGLQUHVSLUDWRUVHOHFWLRQOLPLWDWLRQDQGXVH BBBBBBBBBBBBBBBBBBB (PSOR\HHILWWHGTXDOLWDWLYHWHVWGDWH BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 5HVSLUDWRU0DQXIDFWXUHUDQG0RGHO1XPEHU BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 5HVSLUDWRU0DQXIDFWXUHUDQG0RGHO1XPEHU BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 5HVSLUDWRU0DQXIDFWXUHUDQG0RGHO1XPEHU BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB (PSOR\HH¶V6LJQDWXUH BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB'DWH
BBBBBBBBBBBB 3URJUDP$GPLQLVWUDWRU¶V6LJQDWXUH
BBBBBBBBBBBBBBBBBBBBB'DWH
BBBBBBBBBBBB

$33(1',;'

&,7<2):$7(5)25'
6$03/,1**8,'(/,1(6 352&('85(6
&LW\RI:DWHUIRUG
(6WUHHW32%R[

:DWHUIRUG&$

)D[
0D\

&LW\RI:DWHUIRUG
6DPSOLQJ*XLGHOLQHV 3URFHGXUHV
7DEOHRI&RQWHQWV
6FRSHDQG$SSOLFDWLRQ««««««««««««««««««««««« 0HWKRG6XPPDU\«««««««««««««««««««««««««« ,QWHUIHUHQFHVDQG3RWHQWLDO3UREOHPV««««««««««««««««« 6DPSOLQJ««««««««««««««««««««««««««««« $7\SHV««««««««««««««««««««««««««« %7HFKQLTXHV««««««««««««««««««««««««« &6WUDWHJLHV««««««««««««««««««««««««« '*XLGHOLQHV«««««««««««««««««««««««« +DQGOLQJ 3UHVHUYDWLRQ««««««««««««««««« 5HDJHQWV«««««««««««««««««««««««« )LHOG/RJ%RRN«««««««««««««««««««««
&KDLQRI&XVWRG\
&2&
««««««««««««««««« 6KLSSLQJ«««««««««««««««««««««««« 3XUJLQJ«««««««««««««««««««««««« 7RROV6XSSOLHV«««««««««««««««««««« (3URFHGXUHV«««««««««««««««««««««««««
*HQHUDO««««««««««««««««««««««««
D7HPSHUDWXUH««««««««««««««««««« ES+««««««««««««««««««««««« :DVWHZDWHU««««««««««««««««««««««
D%LRVROLGV««««««««««««««««««««« E%2'7'6 DQG7666DPSOHV«««««««««« F'LVVROYHG2[\JHQ««««««««««««««««« :DWHU«««««««««««««««««««««««««
D&KORULQH)UHH7RWDO«««««««««««««««« E0DQJDQHVH«««««««««««««««««««« F,URQ««««««««««««««««««««««« 6WRUP6DPSOLQJ««««««««««««««««««««
D6DPSOLQJ/RFDWLRQV««««««««««««««««

E6XSSOLHV«««««««««««««««««««««
F6WRUPVDPSOLQJORFDWLRQV««««««««««««««
G/DE2IILFH««««««««««««««««««««
(TXLSPHQW'HFRQWDPLQDWLRQ«««««««««««««««««««««« $3RWHQWLDO3UREOHPV«««««««««««««««««««««« %(TXLSPHQW««««««««««««««««««««««« &0HWKRGV3URFHGXUHV«««««««««««««««««««« 4XDOLW\$VVXUDQFH4XDOLW\&RQWURO««««««««««««««««« 'DWD9DOLGDWLRQ««««««««««««««««««««««« +HDOWKDQG6DIHW\««««««««««««««««««««««««« $33(1',;$
&RQWDLQHUV+ROGLQJ7LPHV&KDUW
««««««««««« $33(1',;%
&RQWDLQHUV6ROYHQW5LQVH&KDUW
«««««««««««« $33(1',;&
:HOO'LDPHWHU&DOFXODWLRQV
««««««««««««««« $33(1',;'
0LQLPXP6DPSOH9ROXPHV
«««««««««««««««« $33(1',;(
'HILQLWLRQV
««««««««««««««««««««««« $33(1',;)
&RQYHUVLRQ)DFWRUV7DEOH
««««««««««««««««« $33(1',;*
+DFK6DPSOH3URFHGXUH([SODLQHG
«««««««««««« $33(1',;+
+DFK3RFNHW&RORULPHWHU2SHUDWLRQ
««««««««««««
$33(1',;,
+DFK'5&RORULPHWHU2SHUDWLRQ
««««««««««««

6$03/,1**8,'(/,1(6352&('85(6
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
7KHDELOLW\WRWUDFHSRVVHVVLRQDQGGRFXPHQWKDQGOLQJWKURXJKRXWWKHSURFHVVRIVDPSOLQJWUDQVSRUWDWLRQDQDO\VLVDQGILQDOGLVSRVLWLRQLVFDOOHG³&KDLQRI&XVWRG\´ &2&
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

WDNLQJDQXQUHSUHVHQWDWLYHVDPSOHRU

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
&HUWDLQFRQGLWLRQVPD\UHTXLUHVSHFLDOKDQGOLQJWHFKQLTXHV6SHFLDOUHTXLUHPHQWVPXVWEHGHWHUPLQHGSULRUWRFRQGXFWLQJILHOGZRUN7KLVFDQEHGRQHE\FRQVXOWLQJZLWKWKHDQDO\WLFDOODE V
WKDWZLOOEHDQDO\]LQJWKHVDPSOH
V
$7<3(6
,QUHODWLRQWRWKHPHGLDWREHVDPSOHGWZREDVLFW\SHVRIVDPSOHVFDQEHFRQVLGHUHG
(QYLURQPHQWDO
7KHVHVDPSOHVDUHWKRVHFROOHFWHGIURPVWUHDPVSRQGVODNHVZHOOV DQGDUHRIIVLWHVDPSOHVWKDWDUHQRWH[SHFWHGWREHFRQWDPLQDWHGZLWKKD]DUGRXVPDWHULDOV7KH\XVXDOO\GRQRWUHTXLUHWKHVSHFLDOKDQGOLQJSURFHGXUHVW\SLFDOO\XVHGIRUFRQFHQWUDWHGZDVWHV+RZHYHULQFHUWDLQLQVWDQFHVHQYLURQPHQWDOVDPSOHVFDQFRQWDLQHOHYDWHGFRQFHQWUDWLRQVRISROOXWDQWVDQGLQFDVHVZRXOGKDYHWREHKDQGOHGDVKD]DUGRXVVDPSOHV +D]DUGRXV
7KHVHVDPSOHVDUHWKRVHFROOHFWHGIURPGUXPVWDQNVODJRRQVSLWVZDVWH SLOHVIUHVKVSLOOVRUDUHDVSUHYLRXVO\LGHQWLILHGDVFRQWDPLQDWHGDQGUHTXLUHVSHFLDOKDQGOLQJSURFHGXUHVEHFDXVHRIWKHLUSRWHQWLDOWR[LFLW\RUKD]DUG7KHVHVDPSOHVFDQEHIXUWKHUVXEGLYLGHGEDVHGRQWKHLUGHJUHHRIKD]DUG KRZHYHUFDUHVKRXOGEHWDNHQZKHQKDQGOLQJDQGVKLSSLQJDQ\ZDVWHVEHOLHYHGWREHFRQFHQWUDWHGUHJDUGOHVVRIWKHGHJUHH 7KHLPSRUWDQFHRIPDNLQJWKHGLVWLQFWLRQEHWZHHQHQYLURQPHQWDODQGKD]DUGRXVVDPSOHVLVWZRIROG
3HUVRQQHOVDIHW\UHTXLUHPHQW
$Q\VDPSOHWKRXJKWWRFRQWDLQHQRXJKKD]DUGRXV
PDWHULDOVWRSRVHDVDIHW\WKUHDWVKRXOGEHGHVLJQDWHGDVKD]DUGRXVDQGKDQGOHGLQDPDQQHUZKLFKHQVXUHVWKHVDIHW\RIERWKILHOGDQGODERUDWRU\SHUVRQQHO 7UDQVSRUWDWLRQUHTXLUHPHQWV
+D]DUGRXVVDPSOHVPXVWEHSDFNDJHGODEHOVDQG
VKLSSHGDFFRUGLQJWRWKH,QWHUQDWLRQDO$LU7UDQVSRUW$VVRFLDWLRQ ,$7$
'DQJHURXV*RRGV5HJXODWLRQVRU'HSDUWPHQWRI7UDQVSRUWDWLRQ '27
UHJXODWLRQVDQG86(3$JXLGHOLQHV
% 7(&+1,48(6
,QJHQHUDOWZREDVLFW\SHVRIVDPSOHFROOHFWLRQWHFKQLTXHVDUHUHFRJQL]HGERWKRIZKLFKFDQEHXVHGIRUHLWKHUHQYLURQPHQWDORUKD]DUGRXVVDPSOHV *UDE6DPSOHV
$JUDEVDPSOHLVGHILQHGDVDGLVFUHWHDOLTXRWUHSUHVHQWDWLYHRID VSHFLILFORFDWLRQDWDJLYHQSRLQWLQWLPH7KHVDPSOHLVFROOHFWHGDOODWRQFHDWRQHSDUWLFXODUSRLQWLQWKHVDPSOHPHGLXP7KHUHSUHVHQWDWLYHQHVVRIVXFKVDPSOHVLVGHILQHGE\WKHQDWXUHRIWKHPDWHULDOVEHLQJVDPSOHG,QJHQHUDODVVRXUFHVYDU\RYHUWLPHDQGGLVWDQFHWKHUHSUHVHQWDWLYHQHVVRIJUDEVDPSOHVZLOOGHFUHDVH &RPSRVLWH6DPSOHV
&RPSRVLWHVDUHQRQGHVFULSWVDPSOHVFRPSRVHGRIPRUHWKDQ RQHVSHFLILFDOLTXRWFROOHFWHGDWYDULRXVVDPSOLQJORFDWLRQVDQGRUGLIIHUHQWSRLQWVLQWLPH$QDO\VLVRIWKLVW\SHRIVDPSOHSURGXFHVDQDYHUDJHYDOXHDQGFDQLQFHUWDLQ
LQVWDQFHVEHXVHGDVDQDOWHUQDWLYHWRDQDO\]LQJDQXPEHURILQGLYLGXDOJUDEVDPSOHV,WVKRXOGEHQRWHGKRZHYHUWKDWFRPSRVLWLQJFDQPDVNSUREOHPVE\GLOXWLQJLVRODWHGFRQFHQWUDWLRQVRIVRPHKD]DUGRXVFRPSRXQGVEHORZGHWHFWLRQOLPLWV &675$7(*,(67KHQXPEHURIVDPSOHVWKDWVKRXOGEHFROOHFWHGDQGDQDO\]HGGHSHQGVRQWKHREMHFWLYHRIWKH LQYHVWLJDWLRQ7KHUHDUHWKUHHEDVLFVDPSOLQJVWUDWHJLHV UDQGRPV\VWHPDWLFDQGMXGJPHQWDOVDPSOLQJ
5DQGRPVDPSOLQJ
LQYROYHVFROOHFWLRQRIVDPSOHVLQDQRQV\VWHPDWLFIDVKLRQIURP WKHHQWLUHVLWHRUDVSHFLILFSRUWLRQRIDVLWH
6\VWHPDWLFVDPSOLQJ
LQYROYHVFROOHFWLRQRIVDPSOHVEDVHGRQDJULGRUDSDWWHUQ ZKLFKKDVEHHQSUHYLRXVO\HVWDEOLVKHG
-XGJPHQWDOVDPSOLQJ
VDPSOHVDUHFROOHFWHGRQO\IURPWKHSRUWLRQ
V
RIWKHVLWHPRVW
OLNHO\WREHFRQWDPLQDWHG
2IWHQDFRPELQDWLRQRIWKHVHVWUDWHJLHVLVWKHEHVWDSSURDFKGHSHQGLQJRQWKHW\SHRIWKHVXVSHFWHGNQRZQFRQWDPLQDWLRQWKHXQLIRUPLW\DQGVL]HRIWKHVLWHWKHOHYHOW\SHRILQIRUPDWLRQGHVLUHGHWF '*8,'(/,1(6
3URSHUVDIHW\SUHFDXWLRQVPXVWDOZD\VEHREVHUYHGZKHQVDPSOLQJ,QDOOFDVHVWKHSHUVRQFROOHFWLQJDVDPSOHPXVWEHDZDUHRIWKHSRWHQWLDOGDQJHUVIURPWKHPDWHULDOWREHVDPSOHGDQGIURPWKHVLWHORFDWLRQ7KHEDFNJURXQGLQIRUPDWLRQREWDLQHGDERXWWKHFRQVWLWXHQWWREHVDPSOHGVKRXOGEHKHOSIXOLQGHFLGLQJWKHH[WHQWRIVDPSOLQJVDIHW\SUHFDXWLRQVWREHREVHUYHG,QVRPHVLWXDWLRQVREWDLQLQJDVDPSOHXVLQJQRUPDOVDPSOLQJSURFHGXUHVPD\EHWRRGDQJHURXVDQGVKRXOGQRWEHDWWHPSWHG7KHIROORZLQJJHQHUDOJXLGHOLQHVDQGVDIHW\UXOHVVKRXOGEHLPSOHPHQWHGZKHQHYHUVDPSOLQJ x 'HWHUPLQHWKHH[WHQWRIWKHVDPSOLQJHIIRUWWKHVDPSOLQJPHWKRGVWREHHPSOR\HGDQGWKH W\SHVDQGDPRXQWVRIHTXLSPHQWDQGVXSSOLHVQHHGHG&KHFNDOOHTXLSPHQWWRHQVXUHJRRG RSHUDWLQJFRQGLWLRQDQGFOHDQOLQHVV
x 2EWDLQDQGXWLOL]HDOOQHFHVVDU\VDPSOLQJDQGPRQLWRULQJHTXLSPHQWDSSURSULDWHWRW\SHRI FRQVWLWXHQWEHLQJLQYHVWLJDWHG
x 'HFRQWDPLQDWHRUSUHFOHDQHTXLSPHQWDQGHQVXUHWKDWLWLVLQZRUNLQJRUGHUx 3UHSDUHVFKHGXOLQJDQGFRRUGLQDWHZLWKVWDIIFOLHQWVODQGRZQHUVDQGUHJXODWRU\DJHQFLHVx 3HUIRUPDJHQHUDOVLWHVXUYH\SULRUWRVLWHHQWU\LQDFFRUGDQFHZLWKWKHVLWHVSHFLILFKHDOWK DQGVDIHW\SODQ

x $OOLQVWUXPHQWVXVHGLQWKHILHOGPXVWEHFDOLEUDWHGDFFRUGLQJWRPDQXIDFWXUHU¶VLQVWUXFWLRQV SULRUWRXVH
x ,GHQWLI\DQGPDUNDOOVDPSOLQJORFDWLRQVx (DFKVDPSOHVKRXOGEHKDQGOHGZLWKFDUHWRPLQLPL]HWKHULVNRISHUVRQDOH[SRVXUHx ,IVSHFLDOKDQGOLQJRIWKHVDPSOHLVDSSURSULDWH\RXPXVWDOVRZDUQWKHODERUDWRU\ZKLFK UHFHLYHVWKHVDPSOH
x $SSURYHGDQGDSSURSULDWHVDIHW\HTXLSPHQWVXFKDVVDIHW\JODVVHVJRJJOHVKDUGKDWVERRWV JORYHVDQGUHVSLUDWRUVPXVWEHZRUQLQDUHDVZKHUHKD]DUGRXVFRQGLWLRQVDUHVXVSHFWHG,QDGGLWLRQH\HDQGKDQGSURWHFWLRQVKRXOGEHZRUQZKHQKDQGOLQJDFLGLFFDXVWLFRURWKHUKD]DUGRXVOLTXLGV LQFOXGLQJSUHVHUYDWLYHFKHPLFDOV

x 1HYHUHDWDQGGULQNZKHQFROOHFWLQJDQGKDQGOLQJVDPSOHVx $OZD\VZDVKKDQGVEHIRUHDQGDIWHUFROOHFWLQJDQGKDQGOLQJVDPSOHVx &RYHUDOOSHUVRQDORSHQFXWVDQGDEUDVLRQVEHIRUHVDPSOLQJx 3URWHFWVDPSOLQJHTXLSPHQWIURPEORZVDJDLQVWURFNVEULGJHUDLOVDQGDQ\RWKHUREMHFWVx :HDUSURSHUILHOGFORWKLQJWRSUHYHQWK\SRWKHUPLDKHDWH[KDXVWLRQVXQVWURNHGURZQLQJRU RWKHUGDQJHUV
x %HIXOO\DZDUHRIDOOOLQHVRIFRPPXQLFDWLRQWKDWDGGUHVVHPHUJHQF\DQGVDIHW\VLWXDWLRQV +$1'/,1*35(6(59$7,217KHSRUWLRQRIVDPSOHWREHDQDO\]HGLVWUDQVIHUUHGWRWKHDSSURSULDWHFRQWDLQHUV,WPD\EHQHFHVVDU\WRWUDQVIHUWKHVDPSOHLQWRWZRRUPRUHFRQWDLQHUVLIPXOWLSOHDQDO\VHVZLOOEHUHTXHVWHGDQGWKH\UHTXLUHGLIIHUHQWSUHVHUYDWLYHVRUGLIIHUHQWFRQWDLQHUPDWHULDOV3UHVHUYDWLYHVVKRXOGEHDGGHGWRZDWHUVDPSOHVDVVRRQDVSUDFWLFDODIWHUFROOHFWLRQ LQJHQHUDOZLWKLQPLQXWHV
1HYHUDGGDFKHPLFDOSUHVHUYDWLYHWRDVOXGJHVDPSOHRUDQ\VDPSOHFRQWDLQLQJODUJHDPRXQWVRIVROLGV$OLVWRISUHVHUYDWLRQWHFKQLTXHVDQGKROGLQJWLPHVLVSURYLGHGLQ$SSHQGL[$6XIILFLHQWYROXPHRIVDPSOHPXVWEHFROOHFWHGIRUDOOWKHDQDO\WLFDOQHHGV$SSHQGL['JLYHVJHQHUDOJXLGHOLQHVIRUYROXPHUHTXLUHPHQWV$VHDFKSRUWLRQRIVDPSOHLVWUDQVIHUUHGWRWKHYDULRXVFRQWDLQHUVLWPD\EHQHFHVVDU\WRVWLURUDJLWDWHWKHVDPSOHVVRWKDWVXVSHQGHGPDWWHUUHPDLQVHYHQO\GLVWULEXWHG7KHIROORZLQJJHQHUDOJXLGHOLQHVVKRXOGEHLPSOHPHQWHGZKHQKDQGOLQJRUSUHVHUYLQJ

VDPSOHV

x 'RQVDIHW\JODVVHVDSSURSULDWHLPSHUYLRXVJORYHVDQGRWKHUQHFHVVDU\VDIHW\ HTXLSPHQW+DYHQHXWUDOL]LQJDJHQWDQGULQVHZDWHUUHDGLO\DYDLODEOH x 3UHVHUYHWKHVDPSOHRUXVHSUHSUHVHUYHGVDPSOHERWWOHVZKHQDSSURSULDWHx 8VHDFOHDQSLSHW IRUHDFKSUHVHUYDWLYH
WRGHOLYHUWKHQHFHVVDU\DPRXQWRI
SUHVHUYDWLYHIRUHDFKVDPSOH$YRLGFRQWDFWLQJWKHSLSHWZLWKWKHVDPSOH$GGSUHVHUYDWLYHLQVPDOOLQFUHPHQWVDQGWHVW WRRPXFKSUHVHUYDWLYHPD\PDVNDQDO\WLFDOUHVXOWV$IWHUSUHVHUYDWLRQLVFRPSOHWHGLVSRVHRIWKHSLSHWE\ULQVLQJLWDQGSODFLQJLWLQWKHWUDVK x &DSWKHVDPSOHDQGVKDNHLWWRPL[WKHSUHVHUYDWLYHZLWKWKHVDPSOHx :KHQDVSHFLILFS+OHYHOLVUHTXLUHG&KHFNWRWKHS+E\SRXULQJDVPDOODPRXQW RIVDPSOHIURPWKHFRQWDLQHURYHUWKHS+SDSHU7RDYRLGFRQWDPLQDWLRQGRQRWSXWWKHS+SDSHULQWKHVDPSOHERWWOH,IUHTXLUHGS+KDVQRWEHHQDFKLHYHGDGGDGGLWLRQDOSUHVHUYDWLYHE\IROORZLQJWKHSURFHGXUHVLQDERYHVWDWHPHQW x 2QFHWKHVDPSOHKDVEHHQSUHVHUYHGSURSHUO\FDSWKHFRQWDLQHUXVHDFXVWRG\ VHDOLIWKHVDPSOHLVIRUHQIRUFHPHQWDQGWKHQSODFHWKHFRQWDLQHULQD]LSORFNSODVWLFEDJ

RSWLRQDO

x /RDGDOOWKHVDPSOHFRQWDLQHUVLQWRFRROHU
V
HQVXULQJWKDWWKHERWWOHVDUHLQ
FRQWDFWZLWKWKHLFHRUFRROLQJSDFNV
x 5HFRUGDOOSHUWLQHQWGDWDLQWKHVLWHORJERRNDQGRQWKHILHOGGDWDVKHHW 5($*(1765HDJHQWVPD\EHXWLOL]HGIRUSUHVHUYDWLRQRIVDPSOHVDQGIRUGHFRQWDPLQDWLRQRIVDPSOLQJHTXLSPHQW&KHFNZLWKWKHDQDO\WLFDOODERUDWRU\LQRUGHUWRGHWHUPLQHZKLFKSUHVHUYDWLYH V
WRXVHLIDQ\DQGWKHTXDQWLWLHVUHTXLUHG),(/'/2*%22.$OOLQIRUPDWLRQSHUWLQHQWWRDILHOGVXUYH\DQGRUVDPSOLQJPXVWEHUHFRUGHGLQDORJERRN(QWULHVLQWKHORJERRNVKRXOGLQFOXGHWKHIROORZLQJW\SHVRILQIRUPDWLRQ
x 3XUSRVHRIVDPSOLQJ
HJFRPSOLDQFHDQQXDOHWF

x /RFDWLRQRIVDPSOLQJ
HJLQGXVWULDOGRPHVWLFHWF
DQGDGGUHVVx 1DPHDGGUHVVDIILOLDWLRQDQGWLWOHRISHUVRQQHOFRQWDFWHGx 7\SHRISURFHVV LINQRZQ
SURGXFLQJZDVWHZDWHUx 7\SHRIZDVWH
HJVOXGJHZDVWHZDWHUHWF

x 7\SHRIWUHDWPHQWV\VWHPx 1XPEHUDQGYROXPHRIVDPSOHWDNHQx 'HVFULSWLRQRIVDPSOLQJSRLQWx 'DWHDQGWLPHRIFROOHFWLRQx &ROOHFWRU VVDPSOHLGHQWLILFDWLRQQXPEHU
V
x &KDLQRI&XVWRG\WDJQXPEHUVx 6DPSOHGLVWULEXWLRQ
HJODERUDWRU\SHUPLWWHHHWF
x 5HIHUHQFHVVXFKDVPDSVRUSKRWRJUDSKVRIWKHVDPSOLQJVLWHx )LHOGREVHUYDWLRQVx $Q\ILHOGPHDVXUHPHQWVPDGHVXFKDVS+WHPSHUDWXUHHWFx &DOLEUDWLRQUHFRUGRIILHOGHTXLSPHQWx 3HUPLWQXPEHU LIDSSOLFDEOH

&+$,12)&8672'<
&2&
$IWHUWKHVDPSOHVKDYHEHHQODEHOHGDQGVHDOHGWKH\VKRXOGEHVWRUHGLQDFRROHUZKLFK LVNHSWLQYLHZRUZLWKLQDOLPLWHGDFFHVVXQWLOFXVWRG\LVUHOLQTXLVKHGDQGIRUPDOGRFXPHQWDWLRQRIWKHWUDQVIHULVFRPSOHWHG&KDLQRI&XVWRG\ &2&
UHTXLUHVSHUPDQHQWUHFRUGVRIDOOVDPSOHKDQGOLQJDQGVKLSPHQW&KDLQRIFXVWRG\SURFHGXUHVPXVWEHXVHGWRHQVXUHVDPSOHLQWHJULW\DQGOHJDOO\DQGWHFKQLFDOO\GHIHQVLEOHGDWD7KHVDPSOHULVUHVSRQVLEOHIRULQLWLDWLQJFKDLQRIFXVWRG\SURFHGXUHVDQGGRFXPHQWLQJWKHVDPSOHVRXUFH,QFRPSOHWLQJWKH&2&)RUPFDUHVKRXOGEHXWLOL]HGWRLQVXUHWKDWDOOQHFHVVDU\LQIRUPDWLRQLVFRUUHFWDQGLVOHJLEO\HQWHUHGRQWRWKHIRUPZLWKDEODFNZDWHUSURRILQNSHQ$WWDFKWKHFXVWRG\VHDOVWRWKHFRROHUSULRUWRVKLSPHQWLIIRULQYHVWLJDWLRQRUVKLSPHQWWRDQRWKHUODERUDWRU\(DFKODERUDWRU\KDVLWVRZQ&2&IRUPV,WLVLPSRUWDQWWRILOORXWWKHSURSHUIRUPDSSOLFDEOHWRWKHODEZKHUHWKHVDPSOHVDUHEHLQJWDNHQRUVKLSSHGWR 6+,33,1*6DPSOHVVKRXOGEHGHOLYHUHGWRWKHODERUDWRU\IRUDQDO\VLVDVVRRQDVSRVVLEOH7KH VDPSOHVPXVWEHDFFRPSDQLHGE\WKHFKDLQRIFXVWRG\UHFRUGDQGE\DVDPSOHDQDO\VLVUHTXHVWVKHHW7KHVDPSOHVPXVWEHGHOLYHUHGWRWKHSHUVRQLQWKHODERUDWRU\DXWKRUL]HGWRUHFHLYHVDPSOHV RIWHQUHIHUUHGWRDVWKHVDPSOHFXVWRGLDQ
:KHQDVDPSOHLVVKLSSHGWRWKHODERUDWRU\LWPXVWEHSDFNDJHGLQDSURSHUVKLSSLQJFRQWDLQHUWRDYRLGOHDNDJHDQGRUEUHDNDJH
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
x $VDJHQHUDOUXOHDOOPRQLWRULQJZHOOVVKRXOGEHSXPSHGRUEDLOHGSULRUWR VDPSOLQJ
x (YDFXDWLRQRIDPLQLPXPRIWKUHHZHOOYROXPHVRIZDWHULQWKHFDVLQJLV UHFRPPHQGHGIRUDUHSUHVHQWDWLYHVDPSOH
x $QDO\WLFDOSDUDPHWHUVW\SLFDOO\GLFWDWHZKHWKHUWKHVDPSOHVKRXOGEHFROOHFWHG WKURXJKWKHSXUJLQJGHYLFHRUWKURXJKDVHSDUDWHVDPSOLQJLQVWUXPHQW x 7KHZHOOVKRXOGEHVDPSOHGDVVRRQDVSRVVLEOHDIWHUSXUJLQJ
x $QRQUHSUHVHQWDWLYHVDPSOHFDQDOVRUHVXOWIURPH[FHVVLYHSXUJLQJRIWKH PRQLWRULQJZHOO([FHVVLYHSXPSLQJFDQGLOXWHRULQFUHDVHWKHFRQWDPLQDQWFRQFHQWUDWLRQVIURPZKDWLVUHSUHVHQWDWLYHRIWKHVDPSOLQJSRLQWRILQWHUHVW 0DWHULDOVRIFRQVWUXFWLRQIRUSXUJLQJHTXLSPHQW
EODGGHUVSXPSEDLOHUVWXELQJHWF
VKRXOGEHOLPLWHGWRVWDLQOHVVVWHHO7HIORQDQGJODVVLQDUHDVZKHUHFRQFHQWUDWLRQVDUHH[SHFWHGWREHDWRUQHDUWKHGHWHFWLRQOLPLW7KHWHQGHQFLHVRIRUJDQLFVWROHDFKLQWRDQGRXWRIPDQ\PDWHULDOVPDNHWKHVHOHFWLRQRIPDWHULDOVFULWLFDOIRUWUDFHDQDO\VHV7KHXVHRISODVWLFVVXFKDV39& SRO\YLQ\OFKORULGH
RUSRO\HWK\OHQHVKRXOGEHDYRLGHGZKHQDQDO\]LQJIRURUJDQLFV+RZHYHU39&PD\EHXVHGIRUHYDFXDWLRQHTXLSPHQWDVLWZLOOQRWFRPHLQFRQWDFWZLWKWKHVDPSOH7KHIROORZLQJZHOOHYDFXDWLRQGHYLFHVDUHPRVWFRPPRQO\XVHG2WKHUHYDFXDWLRQGHYLFHVDUHDYDLODEOHEXWKDYHEHHQRPLWWHGLQWKLVGLVFXVVLRQGXHWRWKHLUOLPLWHGXVH %DLOHUV
WKHVLPSOHVWSXUJLQJGHYLFHXVHGDQGKDYHPDQ\DGYDQWDJHV7KH\ JHQHUDOO\FRQVLVWRIDULJLGOHQJWKRIWXEHXVXDOO\ZLWKDEDOOFKHFNYDOYHDWWKHERWWRP$OLQHLVXVHGWRORZHUWKHEDLOHULQWRWKHZHOODQGUHWULHYHDYROXPHRI ZDWHU7KHWKUHHPRVWFRPPRQW\SHVRIPDWHULDOVXVHGLQPDNLQJEDLOHUVDUH39&7HIORQDQGVWDLQOHVVVWHHO7KLVPDQXDOPHWKRGRISXUJLQJLVEHVWVXLWHGWRVKDOORZRUVPDOOGLDPHWHUZHOOV)RUGHHSODUJHUGLDPHWHUZHOOVZKLFKUHTXLUHHYDFXDWLRQRIODUJHYROXPHVRIZDWHURWKHUPHFKDQLFDOGHYLFHVPD\EHPRUHDSSURSULDWH 6XEPHUVLEOHSXPSV
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
IURPERWWOHV'LIIHUHQWVL]HSXPSVDUHDYDLODEOHIRUGLIIHUHQWGHSWKRUGLDPHWHUPRQLWRULQJZHOOV 722/66833/,(67KHIROORZLQJLVDOLVWRILWHPVWKDWDUHUHFRPPHQGHGIRUVDPSOLQJDFWLYLWLHV
x :DWHUOHYHOLQGLFDWRU
LHHOHFWULFVRXQGHUVWHHOWDSHWUDQVGXFHURUDLUOLQH

x 6WDLQOHVV6WHHO'LSSHUx $SSURSULDWHNH\VIRUZHOOFDSORFNVx 6WHHOEUXVKx /RJERRNx &DOFXODWRUx )LHOGGDWDVKHHWVDQGVDPSOHODEHOVx &KDLQRIFXVWRG\UHFRUGVDQGVHDOVx 6DPSOHFRQWDLQHUVx 5XOHUx 6KDUSNQLIH ORFNLQJEODGH
x 7RROER[
WRLQFOXGHDWOHDVW
VFUHZGULYHUVSOLHUVKDFNVDZKDPPHUIODVKOLJKW
DGMXVWDEOHZUHQFK

x /HDWKHUZRUNJORYHVx $SSURSULDWHKHDOWKDQGVDIHW\JHDUx )LYHJDOORQSDLOx 3ODVWLFVKHHWLQJx 6KLSSLQJ7UDQVSRUWLQJFRROHUVx 3DFNLQJPDWHULDOVx %ROWFXWWHUVx =LSORFSODVWLFEDJVx &RQWDLQHUVIRUHYDFXDWLRQOLTXLGVx 'HFRQWDPLQDWLRQVROXWLRQVx 7DSZDWHUx 1RQSKRVSKDWHVRDSx 6HYHUDOEUXVKHVx 3DLOVRUWXEVx 3HQV3HQFLOVx 3URWHFWLYHJORYHV H[DPSOHV
UXEEHUSODVWLFRUODWH[
x 3UHVHUYDWLYHVx 'LVWLOOHGRUGHLRQL]HGZDWHUx ,FHRURWKHUFRRODQWx +DQG6DQLWL]HUx 3DSHU7RZHOVx 1\ORQ5RSHx &ODPSVx 6SUD\%RWWOHV±%OHDFKZDWHU
(352&('85(6
*(1(5$/
D 7HPSHUDWXUH6DPSOLQJPHWKRGVUHTXLUHWKDWWHPSHUDWXUHRIHIIOXHQWEHGHWHUPLQHGLQVLWX,WLVQRWDFFHSWDEOHWRFROOHFWDVDPSOHIRUWHPSHUDWXUHDQDO\VLV7KH(3$DSSURYHGPHWKRGIRUWHPSHUDWXUHDQDO\VLVUHTXLUHVWKDWWKHWKHUPRPHWHUEHFDOLEUDWHGVHPLDQQXDOO\ 3URFHGXUH
+ROGWKHWKHUPRPHWHUE\LWVWRSDQGLPPHUVHLWLQWKHZDWHU3RVLWLRQWKH WKHUPRPHWHUVRWKDWWKHVFDOHFDQEHUHDG
$OORZWKHWKHUPRPHWHUWRVWDELOL]HIRUDWOHDVWRQHPLQXWH WKHQZLWKRXW
UHPRYLQJWKHWKHUPRPHWHUIURPWKHZDWHUUHDGWKHWHPSHUDWXUHWRWKHQHDUHVWDQGUHFRUGLQILHOGORJERRNDQGRURQWKHFKDLQRIFXVWRG\WDJ E S+7KHDQDO\VLVRIS+PD\EHSHUIRUPHGLQVLWXRULWPD\EHSHUIRUPHGRQDJUDEVDPSOHLIDQDO\VLVLVEHJXQZLWKLQPLQXWHVRIVDPSOHFROOHFWLRQ7KHXVHRIWKHS+PHWHULVWKHRQO\DSSURYHGPHWKRGIRUS+DQDO\VLV S+SDSHULVQRWDFFHSWDEOHIRUPHDVXULQJDQGUHSRUWLQJS+YDOXHVIRUWKHFRPSOLDQFHLQVSHFWLRQSURJUDP +RZHYHULWZRXOGEHYDOXDEOHWRUHFRUGS+LQGLFDWHGE\S+SDSHULQWKHILHOGQRWHERRNZKHQWKHS+PHWHULVLQRSHUDEOH 3URFHGXUH
&DOLEUDWHS+PHWHU
7KHS+IXQFWLRQVKRXOGEHFDOLEUDWHGHDFKGD\RIXVH DQGFKHFNHGDWHDFKVDPSOLQJVLWHD S+EXIIHUVZLWKYDOXHVRIDQG
RU
VKRXOGEH
DYDLODEOH
E :RUNLQJEXIIHUVROXWLRQVVKRXOGEHOHVVWKDQIRXUZHHNVROG%RWWOHV RIEXIIHUSUHSDUHGIURPUHDJHQWSRZGHURUFRQFHQWUDWHVKRXOGEHODEHOHGZLWKGDWHRISUHSDUDWLRQ
F 'RQRWUHWXUQXVHGEXIIHUVROXWLRQWRWKHERWWOHRIEXIIHU 0HDVXUHS+

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
H 5HFRUGWKHS+UHVXOWVLQWKHILHOGORJERRNDQGRQWKHFKDLQRIFXVWRG\ WDJ
:$67(:$7(56DPSOLQJORFDWLRQVPD\EHUHJXODWHGDQGGHWHUPLQHGE\SHUPLW&RQVXOWZLWK&KLHIRI3ODQW2SHUDWLRQVLIXQVXUHRIH[DFWORFDWLRQRUFRQVWLWXHQWWREHVDPSOHG6DPSOLQJORFDWLRQVFDQDOVREHIRXQGLQWKH::732 00DQXDO D %LRVROLGV

%LRVROLGVVDPSOLQJVKRXOGEHGRQHLQDFFRUGDQFHZLWKWKHJXLGHOLQHVIRXQGLQ&KDSWHURIWKH&LW\RI:DWHUIRUG:DVWHZDWHU7UHDWPHQW)DFLOLW\2SHUDWLRQV 0DLQWHQDQFH0DQXDOHQWLWOHG%LRVROLGV0DQDJHPHQW3ODQE %2'7'6DQG7666DPSOHV

,6&2&RPSRVLWH6DPSOHU3URFHGXUH
3ODFHOLWHUFRQWDLQHULQVLGHERWWRPFRPSDUWPHQWZLWKLFHSDFNV $WWDFKWRSKDOIRIVDPSOHUDQGFRQQHFWEDWWHU\SDFN 7UDQVSRUWVDPSOHUDQGFKDLQORFNVWRVDPSOLQJSRLQW $ +HDGZRUNV
=LSWLHVXFWLRQKRVHWRPHWDOSROH 6HWSROHLQWKHIORZMXVWDIWHUJULQGHUV =LSWLHSLSHDQGKRVHWRJDWHYDOYHVWHPPDNLQJVXUHLWLVVHFXUH 3RZHURQVDPSOHU2EVHUYHIRURQHVDPSOLQJF\FOH,I IXQFWLRQLQJSURSHUO\SODFHOLGRQVDPSOHUFKDLQDQGORFNLWWRUDLOLQJ % (IIOXHQW
3ODFHVXFWLRQKRVHKDOIZD\LQWRWKHIORZMXVWEHIRUHWKHZHLU JDWHPDNLQJVXUHWKDWWKHKRVHLVDWOHDVWIRRWVXEPHUJHG 3RZHURQVDPSOHU2EVHUYHIRURQHVDPSOLQJF\FOH,I IXQFWLRQLQJSURSHUO\SODFHOLGRQVDPSOHUFKDLQDQGORFNLWWRUDLOLQJ $WWKHFRPSOHWLRQRIWKHVHOHFWHGVDPSOLQJHYHQWXQORFNVDPSOHUIURP UDLOLQJ WUDQVSRUWWR::73RIILFHV
'LVDVVHPEOHVDPSOHUPDNLQJVXUHQRWWRFRQWDPLQDWHWKHFROOHFWHG VDPSOH$VVRRQDVSUDFWLFDOSODFHOLGRQOLWHUFRQWDLQHUDQGFDUU\LQWRWKHODE $IWHUGLVDVVHPEO\OHDYHWRSSRUWLRQRIVDPSOHURXWVLGHFDUHIXOO\ H[WHQGLQJWKHVXFWLRQKRVHRQWKHJURXQGVRLWFDQEHZDVKHGODWHU 'LVFRQQHFWEDWWHU\SDFN%ULQJLQWRODEDQGSOXJLWLQWRUHFKDUJH 7UDQVIHUFRUUHFWDPRXQWRIVDPSOHFROOHFWHGLQWRWKHDSSURSULDWH

FRQWDLQHUV
ILOORXWWKHFRUUHFW&2&IRUPVSODFHVDPSOHLQWRFRROHUZLWK LFHSDFNVDQGWUDQVSRUWWRODERUDWRU\

8SRQUHWXUQLQJWR::73RIILFHVGHFRQWDPLQDWHVDPSOHU8SRQ FRPSOHWLRQUHDVVHPEOHDQGSODFHLQ::73ODERIILFHXQWLOUHDG\WRXVHDJDLQ *UDE6DPSOH3URFHGXUH
7DNHVDPSOHFROOHFWLRQSROHRXWWRFROOHFWLRQSRLQW +HDGZRUNVRU3ODQW
(IIOXHQW

)LOODQGGXPSWKHVDPSOHERWWOHRQWKHSROHWLPHV 2QWKHWKWLPHWDNHWKHIOXLGFROOHFWHGLQWKHVDPSOHERWWOHRQWKHSROH DQGHPSW\LWLQWRDFFODERUDWRU\FRQWDLQHUERWWOH )LOORXWWKHODEHORQWKHERWWOHDORQJZLWKWKHSURSHU&2&IRUPV 3ODFHVDPSOHLQWRFRROHUZLWKLFHSDFNVDQGWUDQVSRUWWRODE F 'LVVROYHG2[\JHQ

7KHDQDO\VLVRIGLVVROYHGR[\JHQ
'2
PD\EHSHUIRUPHGLQVLWXLID'2PHWHULVXVHGRULWPD\EHSHUIRUPHGRQDJUDEVDPSOHXVLQJHLWKHUWKH:LQNOHUWLWUDWLRQ RUWKH'2PHWHU
3URFHGXUH
&DOLEUDWHPHWHUDFFRUGLQJWRWKHPDQXIDFWXUHU¶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
:$7(5&RQVXOWWKHVDPSOLQJVLWLQJSODQFRQWDLQHGLQWKH5LYHU3RLQWH:DWHU6\VWHP2 00DQXDOIRUVDPSOLQJORFDWLRQVDQGIUHTXHQF\ D &KORULQH)UHH7RWDO
&KORULQHVKRXOGEHDQDO\]HGRQDJUDEVDPSOH7KHDQDO\VLVVKRXOGEHSHUIRUPHGXVLQJWKH+DFK3RFNHW&RORULPHWHU 3URFHGXUH
6HHIROORZLQJ+DFK&RPSDQ\0HWKRGRQSDJH
E 0DQJDQHVH
3$10HWKRG

0DQJDQHVHVKRXOGEHDQDO\]HGRQDJUDEVDPSOH7KHDQDO\VLVVKRXOGEHSHUIRUPHGXVLQJWKH+DFK'5 &RORULPHWHU
3URFHGXUH
6HHIROORZLQJ+DFK&RPSDQ\0HWKRG
RQSDJH
F ,URQ)HUUR]LQH0HWKRG
6KRXOGEHDQDO\]HGRQDJUDEVDPSOH7KHDQDO\VLVVKRXOGEHSHUIRUPHGXVLQJWKH+DFK'5 &RORULPHWHU
3URFHGXUH
6HHDWWDFKHG+DFK&RPSDQ\0HWKRGRQSDJH
672506$03/,1*,03257$175(0,1'(56x (DFKVDPSOLQJORFDWLRQUHTXLUHVDVHWRIFRQWDLQHUVx ³&KDLQRI&XVWRG\´IRUPVDUHUHTXLUHGIRUHDFKORFDWLRQx :KHQWDNLQJVDPSOHVWZR
POFRQWDLQHUVDQGRQH

POFRQWDLQHUUHTXLUH
QRDLUEHLQWURGXFHG
D 6DPSOLQJ/RFDWLRQV
1RUWKRI%RQQLH%UDH(DVWRI:DWHUIRUG+LJKZD\

1RUWKRI.DGRWDDW:DVKEXUQ$YHQXH )RUHVWDO/DQH E 6XSSOLHV
1RWHSDGSHQ 7ZR

POFRQWDLQHUV S+PHWHU
&DOLEUDWHSULRUWRXVH
POFRQWDLQHU
F 6WRUP6DPSOLQJORFDWLRQV
RQVLWH

3URFHGXUH
7XUQRQSXPSVDQGOHWWKHQUXQIRURQH

PLQXWH
'XULQJZLQWHUVWRUP
VDPSOHVDUHFROOHFWHGZKHQLWUDLQV±SXPSVDUHXVXDOO\RQDOUHDG\
&ROOHFWVDPSOHXVLQJWKHWZR

POFRQWDLQHUV±WXUQRIISXPSVDIWHU
FROOHFWLRQ
7DNHFROOHFWHGVDPSOHDQGSRXUDVPDOODPRXQWLQWRWKHPOFRQWDLQHU 5HFRUGS+'2DQGWHPSHUDWXUHUHDGLQJVRIWKHVDPSOHLQWKHILHOG QRWHERRN
3ODFHVDPSOHVLQFRROHULFHFKHVWIRUWUDQVSRUWDWLRQWRWKHODE G /DE2IILFH
&RPSOHWH³&KDLQRI&XVWRG\´IRUPVIRUHDFKVDPSOHORFDWLRQ 3RXUVDPSOHVLQWRWKHDSSURSULDWHODEVXSSOLHGVDPSOHFRQWDLQHUV 9HULI\ODEHOVFRUUHVSRQGZLWKVDPSOHERWWOHV&RPSOHWHWKHLQIRUPDWLRQ UHTXLUHGRQWKHODEHOVRIERWWOHV
3ODFHVDPSOHVLQFRROHULFHFKHVWIRUWUDQVSRUWDWLRQWRWKHODE
&KORULQHIUHH

0DQJDQHVH

0DQFRQWLQXHG

,URQ

,URQFRQWLQXHG

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
3K\VLFDOUHPRYDO
1RQSKRVSKDWHGHWHUJHQWZDVK 7DSZDWHUULQVH 'LVWLOOHGGHLRQL]HGZDWHUULQVH $327(17,$/352%/(06
7KHXVHRIGLVWLOOHGGHLRQL]HGZDWHUFRPPRQO\DYDLODEOHIURPFRPPHUFLDOYHQGRUVPD\EHDFFHSWDEOHIRUGHFRQWDPLQDWLRQRIVDPSOLQJHTXLSPHQWSURYLGHGWKDWLWKDVEHHQYHULILHGE\ODERUDWRU\DQDO\VLVWREHDQDO\WHIUHH VSHFLILFDOO\IRUWKHFRQWDPLQDQWVRIFRQFHUQ
7KHXVHRIDQXQWUHDWHGSRWDEOHZDWHUVXSSO\LVQRWDQDFFHSWDEOHVXEVWLWXWHIRUWDSZDWHU7DSZDWHUPD\EHXVHGIURPDQ\PXQLFLSDORULQGXVWULDOZDWHUWUHDWPHQWV\VWHP,IDFLGVRUVROYHQWVDUHXWLOL]HGLQGHFRQWDPLQDWLRQWKH\UDLVHKHDOWKDQGVDIHW\DQGZDVWHGLVSRVDOFRQFHUQV%HVXUHWRIROORZORFDOVWDWHDQGIHGHUDOUHJXODWLRQVUHODWHGWRXVHDQGGLVSRVDOZKHQGHDOLQJZLWKDQ\RIWKHVHVXEVWDQFHV
%(48,30(17
'HFRQWDPLQDWLRQVROXWLRQVHTXLSPHQWWRROVDQGVXSSOLHVDUHJHQHUDOO\VHOHFWHGEDVHGRQDYDLODELOLW\2WKHUFRQVLGHUDWLRQVLQFOXGHWKHHDVHRIGHFRQWDPLQDWLQJRUGLVSRVLQJRIWKHHTXLSPHQW0RVWHTXLSPHQWDQGVXSSOLHVFDQEHHDVLO\SURFXUHG)RUH[DPSOHVRIWEULVWOHVFUXEEUXVKHVRUORQJKDQGOHGERWWOHEUXVKHVFDQEHXVHGWRUHPRYHFRQWDPLQDQWV/DUJHJDOYDQL]HGZDVKWXEVVWRFNWDQNVRUEXFNHWVFDQKROGZDVKDQGULQVHVROXWLRQV&KLOGUHQ VZDGLQJSRROVFDQDOVREHXVHG7KHIROORZLQJVROXWLRQVWRROVVXSSOLHVDQGHTXLSPHQWDUHUHFRPPHQGHGIRUGHFRQWDPLQDWLRQDFWLYLWLHV
62/87,216
x 1RQSKRVSKDWHGHWHUJHQW
x 9DULRXVVROYHQWV
DFHWRQHKH[DQHQLWULFDFLGHWF
x 7DSZDWHUx 'LVWLOOHGRUGHLRQL]HGZDWHU
722/66833/,(6
x /RQJDQGVKRUWKDQGOHGEUXVKHVx %RWWOHEUXVKHVx 'URSFORWKSODVWLFVKHHWLQJx 3DSHUWRZHOVx 3ODVWLFRUJDOYDQL]HGWXEVRUEXFNHWVx 3UHVVXUL]HGVSUD\HUV +2
x 6ROYHQWVSUD\HUVx $OXPLQXPIRLO
:$67(',6326$/(48,30(17
x 7UDVKEDJVx 7UDVKFRQWDLQHUVx JDOORQGUXPVx 0HWDOSODVWLFEXFNHWVFRQWDLQHUVIRUVWRUDJHDQGGLVSRVDORIGHFRQWDPLQDWLRQ

VROXWLRQV
+($/7+$1'6$)(7<

:KHQGHFRQWDPLQDWLQJVDPSOLQJHTXLSPHQWDOOSURSHUSHUVRQDOSURWHFWLRQFORWKLQJDQGHTXLSPHQWVKRXOGEHZRUQ$WDPLQLPXPWKLVZLOOLQFOXGHFORVHGWRHVKRHVVDIHW\JODVVHVDQGLPSHUYLRXVJORYHV &0(7+2'6352&('85(6
9DULRXVGHFRQWDPLQDWLRQPHWKRGVZLOOUHPRYHFRQWDPLQDQWVE\

IOXVKLQJRURWKHUSK\VLFDO
DFWLRQRU

FKHPLFDOFRPSOH[LQJWRLQDFWLYDWHFRQWDPLQDQWVE\QHXWUDOL]DWLRQFKHPLFDOUHDFWLRQGLVLQIHFWLRQRUVWHULOL]DWLRQ3K\VLFDOGHFRQWDPLQDWLRQWHFKQLTXHVFDQEHJURXSHGLQWRWZRFDWHJRULHV DEUDVLYHPHWKRGVDQGQRQDEUDVLYHPHWKRGV
$%5$6,9(
$EUDVLYHFOHDQLQJPHWKRGVZRUNE\UXEELQJDQGZHDULQJDZD\WKHWRSOD\HURIWKHVXUIDFHFRQWDLQLQJWKHFRQWDPLQDQW7KHPHFKDQLFDODEUDVLYHFOHDQLQJPHWKRGVDUHPRVWFRPPRQO\XVHGDWKD]DUGRXVZDVWHVLWHV7KHIROORZLQJDEUDVLYHPHWKRGVPD\EHXVHG
x 0HFKDQLFDO
0HFKDQLFDOPHWKRGVRIGHFRQWDPLQDWLRQLQFOXGHXVLQJPHWDORU Q\ORQEUXVKHV7KHDPRXQWDQGW\SHRIFRQWDPLQDQWVUHPRYHGZLOOYDU\ZLWKWKHKDUGQHVVRIEULVWOHVOHQJWKRIWLPHEUXVKHGGHJUHHRIEUXVKFRQWDFWGHJUHHRIFRQWDPLQDWLRQQDWXUHRIWKHVXUIDFHEHLQJFOHDQHGDQGGHJUHHRIFRQWDPLQDQWDGKHUHQFHWRWKHVXUIDFH x $LU%ODVWLQJ
$LUEODVWLQJHTXLSPHQWXVHVFRPSUHVVHGDLUWRIRUFHDEUDVLYH PDWHULDOWKURXJKDQR]]OHDWKLJKYHORFLWLHV7KHGLVWDQFHEHWZHHQQR]]OHDQGVXUIDFHFOHDQHGDLUSUHVVXUHWLPHRIDSSOLFDWLRQDQGDQJOHDWZKLFKWKH DEUDVLYHVWULNHVWKHVXUIDFHZLOOGLFWDWHFOHDQLQJHIILFLHQF\'LVDGYDQWDJHVRIWKLVPHWKRGDUHWKHLQDELOLW\WRFRQWUROWKHDPRXQWRIPDWHULDOUHPRYHGDQGWKHODUJHDPRXQWRIZDVWHJHQHUDWHG x :HW%ODVWLQJ
:HWEODVWFOHDQLQJLQYROYHVXVHRIDVXVSHQGHGILQHDEUDVLYH 7KHDEUDVLYHZDWHUPL[WXUHLVGHOLYHUHGE\FRPSUHVVHGDLUWRWKHFRQWDPLQDWHGDUHD%\XVLQJDYHU\ILQHDEUDVLYHWKHDPRXQWRIPDWHULDOVUHPRYHGFDQEHFDUHIXOO\FRQWUROOHG 121$%5$6,9(
1RQDEUDVLYHFOHDQLQJPHWKRGVZRUNE\IRUFLQJWKHFRQWDPLQDQWRIIDVXUIDFHZLWKSUHVVXUH,QJHQHUDOWKHHTXLSPHQWVXUIDFHLVQRWUHPRYHGXVLQJQRQDEUDVLYHPHWKRGV x /RZ3UHVVXUH:DWHU
7KLVPHWKRGFRQVLVWVRIDFRQWDLQHUZKLFKLVILOOHGZLWK ZDWHU7KHXVHUSXPSVDLURXWRIWKHFRQWDLQHUWRFUHDWHDYDFXXP$VOHQGHUQR]]OHDQGKRVHDOORZWKHXVHUWRVSUD\LQKDUGWRUHDFKSODFHV
x 5LQVLQJ
&RQWDPLQDQWVDUHUHPRYHGE\ULQVLQJWKURXJKGLOXWLRQSK\VLFDO DWWUDFWLRQDQGVROXELOL]DWLRQ
x 'DPS&ORWK5HPRYDO
,QVRPHLQVWDQFHVGXHWRVHQVLWLYHQRQZDWHUSURRI
HTXLSPHQWRUGXHWRWKHXQOLNHOLKRRGRIHTXLSPHQWEHLQJFRQWDPLQDWHGLWLVQRWQHFHVVDU\WRFRQGXFWDQH[WHQVLYHGHFRQWDPLQDWLRQSURFHGXUH)RUH[DPSOHDLUVDPSOLQJSXPSVKRRNHGRQDIHQFHSODFHGRQDGUXPRUZUDSSHGLQSODVWLFEDJVDUHQRWOLNHO\WREHFRPHKHDYLO\FRQWDPLQDWHG$GDPSFORWKVKRXOGEHXVHGWRZLSHRIIFRQWDPLQDQWVZKLFKPD\KDYHDGKHUHGWRHTXLSPHQWWKURXJKDLUERUQHFRQWDPLQDQWVRUIURPVXUIDFHVXSRQZKLFKWKHHTXLSPHQWZDVVHW x 'LVLQIHFWLRQ6WHULOL]DWLRQ
'LVLQIHFWDQWVDUHDSUDFWLFDOPHDQVRILQDFWLYDWLQJ
LQIHFWLRXVDJHQWV8QIRUWXQDWHO\VWDQGDUGVWHULOL]DWLRQPHWKRGVDUHLPSUDFWLFDOIRUODUJHHTXLSPHQW7KLVPHWKRGRIGHFRQWDPLQDWLRQLVW\SLFDOO\SHUIRUPHGRIIVLWH 48$/,7<$6685$1&(48$/,7<&21752/7KHUHDUHQRVSHFLILFTXDOLW\DVVXUDQFH 4$
DFWLYLWLHVZKLFKDSSO\WRWKHLPSOHPHQWDWLRQRIWKHVHJXLGHOLQHV+RZHYHUWKHIROORZLQJJHQHUDO4$SURFHGXUHVDSSO\

x $OOGDWDPXVWEHGRFXPHQWHGZLWKLQVLWHORJERRNV
x $OOLQVWUXPHQWDWLRQPXVWEHRSHUDWHGLQDFFRUGDQFHZLWKRSHUDWLQJLQVWUXFWLRQVDVVXSSOLHGE\ WKHPDQXIDFWXUHUXQOHVVRWKHUZLVHVSHFLILHGLQWKHZRUNSODQ(TXLSPHQWFKHFNRXWDQGFDOLEUDWLRQDFWLYLWLHVPXVWRFFXUSULRUWRVDPSOLQJRSHUDWLRQDFFRUGLQJWRWKHPDQXIDFWXUHUVLQVWUXFWLRQVDQGWKH\PXVWEHGRFXPHQWHG x 7KHFROOHFWLRQRIULQVDWHEODQNVLVUHFRPPHQGHGWRHYDOXDWHSRWHQWLDOIRUFURVVFRQWDPLQDWLRQ IURPRUEHWZHHQWKHSXUJLQJDQGRUVDPSOLQJHTXLSPHQW x 7ULSEODQNVDUHUHTXLUHGLIDQDO\WLFDOSDUDPHWHUVLQFOXGHYRODWLOHRUJDQLFFRPSRXQGVx 5HSUHVHQWDWLYHVDPSOHVDUHUHTXLUHG7KHVDPSOHUZLOOHYDOXDWHWKHVLWHVSHFLILFFRQGLWLRQVWR DVVXUHWKHVDPSOHZLOOEHUHSUHVHQWDWLYH
x $OOVDPSOLQJHTXLSPHQWPXVWEHFRPSOHWHO\GHFRQWDPLQDWHGSULRUWRDQGDIWHUXVHx %HWZHHQHDFKVWDWLRQVDPSOLQJHTXLSPHQW LHEXFNHWVGHSWKVDPSOHUDQGGHSWKLQWHJUDWHG

VDPSOHU
VKDOOEHZDVKHGZLWKDSKRVSKDWHIUHHVRDSDQGULQVHGWKUHHWLPHVZLWKGLVWLOOHGZDWHU,IVDPSOLQJYHUWLFDOSURILOHVDWWKHVDPHVWDWLRQVDPSOLQJHTXLSPHQWZLOOQRWEHZDVKHGXQOHVVGHHPHGQHFHVVDU\E\WKHSURMHFWGDWDTXDOLW\REMHFWLYHV '$7$9$/,'$7,215HVXOWVRITXDOLW\FRQWUROVDPSOHVZLOOEHHYDOXDWHGE\ODESHUVRQQHODQGWKHSURMHFWOHDGHU7KLVLQIRUPDWLRQZLOOEHXWLOL]HGWRTXDOLI\WKHVDPSOHUHVXOWVLQDFFRUGDQFHZLWKWKHSURMHFW VGDWDTXDOLW\REMHFWLYHV

+($/7+$1'6$)(7<:KHQZRUNLQJZLWKSRWHQWLDOO\KD]DUGRXVPDWHULDOVIROORZ86(QYLURQPHQWDO3URWHFWLRQ$JHQF\ 86(3$
2FFXSDWLRQDO6DIHW\DQG+HDOWK$GPLQLVWUDWLRQ
26+$
RUFRUSRUDWHKHDOWKDQGVDIHW\JXLGHOLQHV0RUHVSHFLILFDOO\GHSHQGLQJXSRQWKHVLWHVSHFLILFFRQWDPLQDQWVYDULRXVSURWHFWLYHSURJUDPVPXVWEHLPSOHPHQWHGSULRUWRVDPSOLQJ7KHVLWHKHDOWKDQGVDIHW\SODQVKRXOGEHUHYLHZHGZLWKVSHFLILFHPSKDVLVSODFHGRQWKHSURWHFWLRQSURJUDPSODQQHGIRUWKHVDPSOLQJWDVNV6WDQGDUGVDIHRSHUDWLQJSUDFWLFHVVKRXOGEHIROORZHGVXFKDVPLQLPL]LQJFRQWDFWZLWKSRWHQWLDOFRQWDPLQDQWVLQERWKWKHYDSRUSKDVHDQGOLTXLGPDWUL[WKURXJKWKHXVHRIUHVSLUDWRUVDQGGLVSRVDEOHFORWKLQJ6DPSOHUVVKRXOGEHDZDUHRIWKHIROORZLQJ 3K\VLFDOKD]DUGVDVVRFLDWHGZLWKVDPSOLQJ

x /LIWLQJLQMXULHVDVVRFLDWHGZLWKSXPSDQGEDLOHUVUHWULHYDO PRYLQJHTXLSPHQW
x &XWVDVVRFLDWHGZLWKWKHXVHRISRFNHWNQLYHVIRUFXWWLQJGLVFKDUJHKRVHHWFx +HDWFROGVWUHVVDVDUHVXOWRIH[SRVXUHWRH[WUHPHWHPSHUDWXUHVDQGEHFDXVHRISURWHFWLYH FORWKLQJ
x 6LWXDWLRQVFRQGXFLYHWRVOLSSLQJWULSSLQJRUIDOOLQJDVDUHVXOWRIZHWRULF\FRQGLWLRQVx (OHFWULFDOVKRFNDVVRFLDWHGZLWKXVHRIVXEPHUVLEOHSXPSVLVSRVVLEOH8VHDJURXQGIDXOWFLUFXLW LQWHUUXSWHURUDFRSSHUJURXQGLQJVWDNHWRDYRLGWKLVSUREOHP x $FLGEXUQVPD\RFFXULIDFLGSUHVHUYDWLYHVDUHPLVKDQGOHG :KHQZRUNLQJDURXQGYRODWLOHRUJDQLFFRQWDPLQDQWV

x $YRLGEUHDWKLQJFRQVWLWXHQWVYHQWLQJIURPWKHZHOOx 6XUYH\WKHZHOOKHDGVSDFHZLWKDIODPHLRQL]DWLRQGHWHFWRU ),'
RUSKRWRLRQL]DWLRQGHWHFWRU

3,'
SULRUWRVDPSOLQJ
x ,IPRQLWRULQJUHVXOWVLQGLFDWHRUJDQLFFRQVWLWXHQWVVDPSOLQJDFWLYLWLHVPD\EHFRQGXFWHGLQ SURWHFWLYHFORWKLQJ$WDPLQLPXPVNLQSURWHFWLRQZLOOEHDIIRUGHGE\GLVSRVDEOHSURWHFWLYHFORWKLQJ /RQJWHUPH[SRVXUHWRKD]DUGRXVFKHPLFDOVIRXQGDWPDQ\VLWHVRILQYHVWLJDWLRQPD\SRVHDKHDOWKKD]DUGHVSHFLDOO\LISURSHUSURWHFWLYHFORWKLQJLVQRWZRUQ
$33(1',;$
5(48,5('&217$,1(5635(6(59$7,217(&+1,48(6
$1'+2/',1*7,0(6
3DUDPHWHU1DPH &RQWDLQHU 3UHVHUYDWLRQ 0D[LPXP+ROGLQJ7LPH %DFWHULDO7HVWV 3RO\HWK\OHQH
3 *ODVV
*
&ROLIRUPIHFDODQGWRWDO)HFDOVWUHSWRFRFFL
3*3*
&RRO&1D6 2 &RRO&1D6 2 KRXUVKRXUV
$TXDWLF7R[LFLW\7HVWV7R[LFLW\DFXWHDQGFKURQLF 3* &RRO& KRXUV&KHPLFDO7HVWV$FLGLW\ 3* &RRO& GD\V$ONDOLQLW\ 3* &RRO& GD\V$PPRQLD 3* &RRO&+62WRS+ GD\V%LRFKHPLFDOR[\JHQGHPDQG %2'
3* &RRO& KRXUV%RURQ 3RUTXDUW] +12WRS+ PRQWKV%URPLGH 3* 1RQHUHTXLUHG GD\V%LRFKHPLFDOR[\JHQGHPDQGFDUERQDFHRXV 3* &RRO& KRXUV&KHPLFDOR[\JHQGHPDQG 3* &RRO&+62WRS+ GD\V&KORULGH 3* 1RQHUHTXLUHG GD\V&KORULQHWRWDOUHVLGXDO 3* 1RQHUHTXLUHG $QDO\]HLPPHGLDWHO\&RORU 3* &RRO& KRXUV&\DQLGHWRWDODQGDPHQDEOHWRFKORULQDWLRQ 3* &RRO&1D2+WRS+! JDVFRUELFDFLG GD\V)OXRULGH 3 1RQHUHTXLUHG GD\V+DUGQHVV 3* +12WRS++62WRS+ PRQWKV+\GURJHQLRQ S+
3* 1RQHUHTXLUHG $QDO\]HLPPHGLDWHO\.MHOGDKODQGRUJDQLFQLWURJHQ 3* &RRO&+62WRS+ GD\V1LWUDWH 3* &RRO& KRXUV1LWUDWHQLWULWH 3* &RRO&+62WRS+ GD\V1LWULWH 3* &RRO& KRXUV2LODQGJUHDVH * &RRO&+&,RU+62WRS+ GD\V2UJDQLF&DUERQ 3* &RRO&+&,RU+62RU+32 WRS+ GD\V2UWKRSKRVSKDWH 3* )LOWHULPPHGLDWHO\ &RRO& KRXUV2[\JHQGLVVROYHGSUREH *%RWWOHDQGWRS 1RQHUHTXLUHG $QDO\]HLPPHGLDWHO\2[\JHQ:LQNOHU *%RWWOHDQGWRS )L[RQVLWHDQGVWRUHLQGDUN KRXUV3KHQROV *RQO\ &RRO&+62WRS+ GD\V3KRVSKRUXVHOHPHQWDO * &RRO& KRXUV
$33(1',;$&217,18('
5(48,5('&217$,1(5635(6(59$7,217(&+1,48(6
$1'+2/',1*7,0(6
3DUDPHWHU1DPH &RQWDLQHU 3UHVHUYDWLRQ 0D[LPXP+ROGLQJ7LPH 3KRVSKRUXVWRWDO 3* &RRO&+62WRS+ GD\V5HVLGXH7RWDO 3* &RRO& GD\V5HVLGXH)LOWHUDEOH 3* &RRO& GD\V5HVLGXH1RQILOWHUDEOH 766
3* &RRO& GD\V5HVLGXH6HWWOHDEOH 3* &RRO& KRXUV5HVLGXH9RODWLOH 3* &RRO& GD\V6LOLFD 3RUTXDUW] &RRO& GD\V6SHFLILF&RQGXFWDQFH 3* &RRO& GD\V6XOIDWH 3* &RRO& GD\V6XOILGH 3* &RRO&DGG]LQFDFHWDWHSOXV VRGLXPK\GUR[LGHWRS+! GD\V6XOILWH 3* 1RQHUHTXLUHG $QDO\]HLPPHGLDWHO\6XUIDFWDQWV 3* &RRO& KRXUV7HPSHUDWXUH 3* 1RQHUHTXLUHG $QDO\]HLPPHGLDWHO\7XUELGLW\ 3* &RRO& KRXUV0HWDOV&KURPLXP9, 3* &RRO& KRXUV0HUFXU\ 3* +12WRS+ GD\V0HWDOVH[FHSWERURQFKURPLXP9,DQGPHUFXU\ 3* +12WRS+ PRQWKV2UJDQLF7HVWV92$ 9RODWLOH2UJDQLF

*7HIORQOLQHGVHSWXP
QRDLUEXEEOHV &RRO&1D6 2 GD\V
%7(;
%HQ]HQH7ROXOHQH(WKO\EHQ]HQH;\OHQH

*7HIORQOLQHGVHSWXP
QRDLUEXEEOHV &RRO&1D6 2 GD\V
6HPLYRODWLOHV
,QFOXGHVDFLGDQGEDVHQHXWUDOH[WUDFWDEOHVSRO\QXFOHDUDURPDWLFVKDORHWKHUVDQGSKHQROFRPSRXQGV
*7HIORQOLQHGFDS &RRO&1D6 2 GD\VXQWLOH[WUDFWLRQ GD\VDIWHUH[WUDFWLRQ 3KHQROV *7HIORQOLQHGFDS &RRO&1D6 2 GD\VXQWLOH[WUDFWLRQ GD\VDIWHUH[WUDFWLRQ3&%V *7HIORQOLQHGFDS &RRO& GD\VXQWLOH[WUDFWLRQ GD\VDIWHUH[WUDFWLRQ3HVWLFLGHV7HVWV3HVWLFLGHV+HUELFLGHV *7HIORQOLQHGFDS &RRO&S+ GD\VXQWLOH[WUDFWLRQ GD\VDIWHUH[WUDFWLRQ5DGLRORJLFDO7HVWV$OSKDEHWDDQGUDGLXP 3* +12WRS+ PRQWKV
$33(1',;%
62/8%/(&217$0,1$176$1'5(&200(1('
62/9(175,16(
7$%/(
6ROXEOH&RQWDPLQDQWVDQG5HFRPPHQGHG6ROYHQW
62/9(17

(;$03/(62)62/9(176 62/8%/(&217$0,1$176
:DWHU 'HLRQL]HGZDWHU 7DSZDWHU
/RZFKDLQK\GURFDUERQV,QRUJDQLFFRPSRXQGV6DOWV6RPHRUJDQLFDFLGVDQGRWKHUSRODUFRPSRXQGV 'LOXWH$FLGV
1LWULFDFLG$FHWLFDFLG%RULFDFLG
%DVLF

FDXVWLF
FRPSRXQGV
HJDPLQHVDQGK\GUD]LQHV

'LOXWH%DVHV 6RGLXPELFDUERQDWH
HJVRDS GHWHUJHQW

$FLGLFFRPSRXQGV3KHQRO7KLROV6RPHQLWURDQGVXOIRQLFFRPSRXQGV 2UJDQLF6ROYHQWV

$OFRKROV(WKHUV.HWRQHV$URPDWLFV6WUDLJKWFKDLQDONDOLQHV HJKH[DQH
&RPPRQSHWUROHXPSURGXFWV
HJIXHORLONHURVHQH

1RQSRODUFRPSRXQGV
HJVRPHRUJDQLF

FRPSRXQGV

2UJDQLF6ROYHQW

+H[DQH 3&%V

0DWHULDOVDIHW\GDWDVKHHWVDUHUHTXLUHGIRUDOOGHFRQWDPLQDWLRQVROYHQWVRUVROXWLRQVDV UHTXLUHGE\WKH+D]DUG&RPPXQLFDWLRQ6WDQGDUG

:$51,1*
6RPHRUJDQLFVROYHQWVFDQSHUPHDWHDQGRUGHJUDGHWKHSURWHFWLYHFORWKLQJ
$33(1',;&
&$/&8/$7,216
,IWKHGLDPHWHURIWKHPRQLWRUZHOOLVNQRZQWKHUHDUHDQXPEHURIVWDQGDUGFRQYHUVLRQIDFWRUVZKLFKFDQEHXVHGWRVLPSOLI\WKHHTXDWLRQ7KHYROXPHLQJDOORQVSHUOLQHDUIRRWIRUYDULRXVVWDQGDUGPRQLWRUZHOOGLDPHWHUVFDQEHFDOFXODWHGDVIROORZV YROXPH
LQJDOIW
SUð
FI
ZKHUH
S SL
DSSUR[LPDWHO\

U UDGLXVRIPRQLWRULQJZHOO
IHHW
FI FRQYHUVLRQIDFWRU
JDOIWñ

)RUDLQFKGLDPHWHUZHOOWKHYROXPHSHUOLQHDUIRRWFDQEHFDOFXODWHGDVIROORZV YROXPH
LQJDOIW
SUð
FI

IW
ðJDOIWñ JDOIW5HPHPEHUWKDWWKHZHOOGLDPHWHULQLQFKHVPXVWEHFRQYHUWHGWRDUDGLXVLQIHHWLQRUGHUWRXVHWKHHTXDWLRQ6RPHH[DPSOHVRIYROXPHVLQJDOORQVSHUOLQHDUIRRWIRUVRPHGLIIHUHQWZHOOGLDPHWHUV 6FKHGXOH39&
DUHOLVWHGEHORZ
:HOO'LDPHWHU LQFKHV LQFKHV LQFKHV LQFKHV
$SSUR[LPDWH
9ROXPH
JDOIW

7KHZDWHUYROXPHRIDZHOOLVW\SLFDOO\WULSOHGWRGHWHUPLQHWKHYROXPHWREHSXUJHG
$33(1',;'
0,1,0806$03/(92/80(6
3DUDPHWHU 5HTXLUHG6DPSOH9ROXPH
PO

$ONDOLQLW\
$PPRQLD
%2' &2'
&KORULGH &KORULQH
&\DQLGH
)OXRULGH
S+
.MHOGDKOQLWURJHQ
1LWUDWH1LWULWH
2LODQGJUHDVH
2UWKRSKRVSKDWH
3KHQROV
6SHFLILF&RQGXFWDQFH
7RWDO3KRVSKRUXV
7RWDO5HVLGXH
7'6
766
6XOIDWH
6XOILGH
72&
0HWDOV
+H[DYDOHQW&KURPLXP
$OO2WKHUV
2UJDQLFV
9RODWLOHV
XVH92$ERWWOH

6HPLYRODWLOHV
3HVWLFLGHV

$33(1',;(
'(),1,7,216
%RWWOH%ODQN
$QDO\WHIUHHZDWHULVFROOHFWHGLQWRDVDPSOHFRQWDLQHUVXVHGIRUWKHHQYLURQPHQWDO VDPSOHV7KLVVDPSOHHYDOXDWHVFRQWDPLQDWLRQLQWURGXFHGIURPWKHVDPSOHFRQWDLQHU V
IURPDFRPPRQORW
(TXLSPHQW5LQVH5LQVDWH%ODQNV
$VDPSOHWKDWLVFROOHFWHGE\SRXULQJRYHURUUXQQLQJDQDO\WH IUHHZDWHUWKURXJKWKHVDPSOHFROOHFWLRQHTXLSPHQWDIWHUGHFRQWDPLQDWLRQDQGEHIRUHVDPSOHFROOHFWLRQ7KHVDPSOHLVFROOHFWHGLQWKHDSSURSULDWHVDPSOHFRQWDLQHUZLWKWKHSURSHUSUHVHUYDWLYHLGHQWLFDOWRWKHVDPSOHV7KLVVDPSOHHYDOXDWHVEDFNJURXQGFRQWDPLQDWLRQUHVXOWLQJIURPWKHILHOGHTXLSPHQWVDPSOLQJSURFHGXUHVDPSOHFRQWDLQHUSUHVHUYDWLYHDQGVKLSPHQW )LHOG%ODQN
,QWKHILHOGDQDO\WHIUHHZDWHULVFROOHFWHGLQWRDVDPSOHFRQWDLQHUZLWKSUHVHUYDWLYHV 7KHVDPSOHFRQWDLQHUVDUHWKHVDPHORWXVHGIRUWKHHQYLURQPHQWDOVDPSOHV7KLVHYDOXDWHVFRQWDPLQDWLRQLQWURGXFHGIURPWKHVDPSOHFRQWDLQHU V
ZLWKDSSOLFDEOHSUHVHUYDWLYHV)LHOGEODQNV
DUHQRWXVHGIRUYRODWLOHVDPSOHV
)LHOG5HSOLFDWHV'XSOLFDWHV
7ZRRUPRUHVDPSOHVFROOHFWHGDWWKHVDPHVDPSOLQJORFDWLRQ)LHOG UHSOLFDWHVVKRXOGEHVDPSOHVFROOHFWHGVLGHE\VLGHRUE\FROOHFWLQJRQHVDPSOHDQGLPPHGLDWHO\FROOHFWLQJWKHVHFRQGVDPSOH)LHOGUHSOLFDWHVUHSUHVHQWWKHSUHFLVLRQRIWKHZKROHPHWKRGVLWHKHWHURJHQHLW\ILHOGVDPSOLQJDQGWKHODERUDWRU\DQDO\VLV )LHOG6SOLW6DPSOHV
7ZRRUPRUHUHSUHVHQWDWLYHVXEVDPSOHVWDNHQIURPRQHHQYLURQPHQWDO VDPSOHLQWKHILHOG3ULRUWRVSOLWWLQJWKHHQYLURQPHQWDOVDPSOHLVKRPRJHQL]HGWRFRUUHFWIRUVDPSOHKHWHURJHQHLW\WKDWZRXOGDGYHUVHO\LPSDFWGDWDFRPSDUDELOLW\)LHOGVSOLWVDPSOHVDUHXVXDOO\DQDO\]HGE\GLIIHUHQWODERUDWRULHV LQWURODERUDWRU\FRPSDULVRQ
RUE\WKHVDPHODERUDWRU\
LQWUDODERUDWRU\FRPSDULVRQ
)LHOGVSOLWVDUHXVHGWRDVVHVVDPSOHKDQGOLQJSURFHGXUHVIURPILHOGWRODERUDWRU\DQGODERUDWRU\¶VFRPSDUDELOLW\ )LOWHU%ODQN
,QWKHILHOGDQDO\WHIUHHZDWHULVSDVVHGWKURXJKDILOWHUDQGFROOHFWHGLQWRWKH DSSURSULDWHVDPSOHFRQWDLQHU7KHILOWHUEODQNLVWKHQSUHVHUYHG7KLVSURFHGXUHLVLGHQWLFDOWRWKHVDPSOHFROOHFWLRQ /DERUDWRU\4XDOLW\6DPSOHV
$GGLWLRQDOVDPSOHVZLOOEHFROOHFWHGIRUWKHODERUDWRU\¶VTXDOLW\

FRQWURO
PDWUL[VSLNHPDWUL[VSLNHGXSOLFDWHODERUDWRU\GXSOLFDWHVHWF 3URILFLHQF\7HVWLQJ
37 3HUIRUPDQFH(YDOXDWLRQ6DPSOH
3(6

$VDPSOHWKHFRPSRVLWLRQRI
ZKLFKLVXQNQRZQWRWKHODERUDWRU\RUDQDO\VWSURYLGHGWRWKHDQDO\VWRUODERUDWRU\WRDVVHVVWKHFDSDELOLW\WRSURGXFHUHVXOWVZLWKLQDFFHSWDEOHFULWHULD7KLVLVRSWLRQDOGHSHQGLQJRQWKHGDWDTXDOLW\REMHFWLYHV

6KLSSLQJ&RQWDLQHU7HPSHUDWXUH%ODQN
$ZDWHUVDPSOHWKDWLVWUDQVSRUWHGWRWKHODERUDWRU\WR PHDVXUHWKHWHPSHUDWXUHRIWKHVDPSOHVLQWKHFRROHU
7ULS%ODQNV
$VDPSOHFROOHFWHGDWWKHODERUDWRU\XVLQJDQDO\WHIUHHZDWHULQWKHDSSURSULDWH VDPSOHFRQWDLQHUZLWKWKHSURSHUSUHVHUYDWLYHWDNHQRXWWRWKHILHOGDQGUHWXUQHGWRWKHODERUDWRU\IRUDQDO\VLVZLWKRXWEHLQJRSHQHG7ULSEODQNVDUHJHQHUDOO\IRUYRODWLOHRUJDQLFFRPSRXQGVORZ OHYHOPHWDOVDQGJDVROLQHUDQJHK\GURFDUERQVDPSOHV7ULSEODQNVDUHXVHGWRDVVHVVFRQWDPLQDWLRQLQWURGXFHGGXULQJVDPSOHWUDQVSRUW &LW\RI:DWHUIRUG
6HZHU6\VWHP0DQDJHPHQW3ODQ
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 3UHSDUHGE\

7KH&LW\RI:DWHUIRUG3XEOLF:RUNV'HSDUWPHQW
(6WUHHW:DWHUIRUG&$

RUSXEOLFZRUNV#FLW\RIZDWHUIRUGRUJ

7$%/(2)&217(176
,1752'8&7,21«««««««««««««««««««««««««««
5HJXODWRU\5HTXLUHPHQW «««««««««««««««««««««
&LW\6HUYLFH$UHDDQG&ROOHFWLRQ6\VWHP'HVFULSWLRQ««««««««« :DVWHZDWHU7UHDWPHQWDQG&ROOHFWLRQV'LYLVLRQ«««««««««««« 6603(/(0(176«««««««««««««««««««««««««««
(OHPHQW
*RDO«««««««««««««««««««««««««
5HJXODWRU\5HTXLUHPHQWIRU*RDOV«««««««««««««««
(OHPHQW
2UJDQL]DWLRQ««««««««««««««««««««««
5HJXODWRU\5HTXLUHPHQWVIRU2UJDQL]DWLRQ(OHPHQW«««««««« $XWKRUL]HG5HSUHVHQWDWLYH««««««««««««««««««
5HVSRQVLELOLW\IRU6603,PSOHPHQWDWLRQ«««««««««««« '(6&5,37,212)*(1(5$/5(3216,%,/,7,(6«««««««««««««
),*85($««««««««««««««««««««««««««««««

7$%/(««««««««««««««««««««««««««««««
3XEOLF:RUNV'HSDUWPHQW2UJDQL]DWLRQ
2UJDQL]DWLRQ&KDUWRI:DVWHZDWHU6WDII
7$%/(««««««««««««««««««««««««««««««
,PSOHPHQWDWLRQ5HVSRQVLELOLWLHV
7$%/(«««««««««««««««««««««««««««««««
6SLOO5HSRUWLQJ5HVSRQVLELOLWLHV

,QWURGXFWLRQ5HJXODWRU\5HTXLUHPHQW2Q0D\WKH6WDWH:DWHU5HVRXUFHV&RQWURO%RDUG 6:5&%
HQDFWHG2UGHU1R6WDWHZLGH*HQHUDO:DVWH'LVFKDUJH5HTXLUHPHQWVIRU6DQLWDU\6HZHU6\VWHPV :'5
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
DFFRUGLQJWRLWV%RDUGDSSURYHG'HYHORSPHQW3ODQDQG6FKHGXOH 7KLV6603LVLQWHQGHGWRPHHWWKHUHTXLUHPHQWVRIERWKWKH&HQWUDO9DOOH\5HJLRQDO:DWHU4XDOLW\&RQWURO%RDUG 5:4&%
DQGWKH6WDWHZLGH*:'57KH6603LQFOXGHVHOHYHQHOHPHQWVOLVWHGEHORZ *RDOV 2UJDQL]DWLRQ 2YHUIORZ(PHUJHQF\5HVSRQVH3ODQ )DWV2LOVDQG*UHDVH&RQWURO3URJUDP /HJDO$XWKRULW\ 0HDVXUHVDQG$FWLYLWLHV 2SHUDWLRQDQG0DLQWHQDQFH3URJUDP

'HVLJQDQG&RQVWUXFWLRQ6WDQGDUGV
'HVLJQDQG3HUIRUPDQFH3URYLVLRQV
&DSDFLW\0DQDJHPHQW
6\VWHP(YDOXDWLRQDQG&DSDFLW\$VVXUDQFH3ODQ

0RQLWRULQJ0HDVXUHPHQWDQG3URJUDP0RGLILFDWLRQV 6603$XGLWV &RPPXQLFDWLRQ3ODQ &LW\6HUYLFH$UHDDQG&ROOHFWLRQ6\VWHP'HVFULSWLRQ7KH&LW\RI:DWHUIRUGLVORFDWHGLQHDVWHUQ6WDQLVODXV&RXQW\7KHFORVHVWFLWLHVDUH+XJKVRQ2DNGDOHDQGWKHWRZQRI+LFNPDQ7KH&LW\¶VVHZHUV\VWHPVHUYHVDSRSXODWLRQRIDSSUR[LPDWHO\UHVLGHQWV/DQGXVHVVHUYHGE\WKH&LW\¶VVHZHUV\VWHPLQFOXGH UHVLGHQWLDOUHWDLORIILFHFRPPHUFLDODQGOLJKWLQGXVWULDOGHYHORSPHQWV7KH&LW\RI:DWHUIRUG¶VZDVWHZDWHUFROOHFWLRQV\VWHPVHUYHVUHVLGHQWLDOUHWDLOFRPPHUFLDODQGOLJKWLQGXVWULDOXVHUV7KH&LW\¶VZDVWHZDWHUFROOHFWLRQV\VWHPLQFOXGHV
DSSUR[LPDWHO\PLOHVRIJUDYLW\VHZHUOLQH
PDLQWUXQNVDQGODWHUDOV
PLOHVRIIRUFHPDLQDSSUR[LPDWHO\PDQKROHVDQGOLIWVWDWLRQV7KHPDLQOLQHVDUHPDGHRIDYDULHW\RIPDWHULDOVGHSHQGLQJRQWKHDJHYLWULILHGFOD\SLSH 9&3
DQGSRO\YLQ\OFKORULGH7KH&LW\¶VSULPDU\JRDOLVWRPDLQWDLQXQLQWHUUXSWHGVHZDJHIORZZLWKRXWKHDOWKKD]DUGHIIOXHQWOHDNDJHRUZDWHULQILOWUDWLRQDQGLQIORZ:DVWHZDWHU7UHDWPHQWDQG&ROOHFWLRQV'LYLVLRQ&XUUHQWO\WKH&LW\RI:DWHUIRUG:DVWHZDWHU7UHDWPHQW3ODQW &2:::73
DQG&ROOHFWLRQV'LYLVLRQFRQVLVWVRID&KLHI3ODQW2SHUDWRUDQGDQ2SHUDWRULQ7UDLQLQJ7KH'HSDUWPHQWLVVXSSOHPHQWHGZLWK0DLQWHQDQFH:RUNHUVIURPYDULRXVGLYLVLRQVZLWKLQWKH3XEOLF:RUNV'HSDUWPHQWZKRKDYHEHHQFURVVWUDLQHGWRSHUIRUPQHFHVVDU\ IXQFWLRQVLQWKHFROOHFWLRQV\VWHP7KH2SHUDWRULQ7UDLQLQJDOVRVHUYHVLQWKHFROOHFWLRQV\VWHPVSHFLILFDOO\LQWKHDUHDRISUHYHQWLYHPDLQWHQDQFHLQDGGLWLRQWRURXWLQHGDLO\RSHUDWLRQV
(OHPHQW

*2$/6
7KLV6603HOHPHQWLGHQWLILHVJRDOVWKH&LW\KDVVHWIRUWKHPDQDJHPHQWRSHUDWLRQDQGPDLQWHQDQFHRIWKHVHZHUV\VWHPDQGGLVFXVVHVWKHUROHRIWKH6603LQVXSSRUWLQJWKHVHJRDOV7KHVHJRDOVSURYLGHIRFXVIRU&LW\VWDIIWRFRQWLQXHKLJKTXDOLW\ZRUNDQGWRLPSOHPHQWLPSURYHPHQWVLQWKHPDQDJHPHQWRIWKH&LW\¶VZDVWHZDWHUFROOHFWLRQV\VWHP7KLVVHFWLRQIXOILOOVWKH*RDOVUHTXLUHGE\WKH6:5&% (OHPHQW
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
3UHYHQWXQQHFHVVDU\GDPDJHWRSXEOLFDQGSULYDWHSURSHUW\ 8VHIXQGVDYDLODEOHIRUVHZHURSHUDWLRQVLQWKHPRVWHIILFLHQWPDQQHU &RQYH\ZDVWHZDWHUWRWUHDWPHQWIDFLOLWLHVZLWKDPLQLPXPRILQILOWUDWLRQDQG LQIORZ
3URYLGHDGHTXDWHFDSDFLW\WRFRQYH\SHDNIORZV
3HUIRUPDOORSHUDWLRQVLQDVDIHPDQQHUWRDYRLGSHUVRQDOLQMXU\DQGSURSHUW\ GDPDJH
7KLV6603VXSSOHPHQWVDQGVXSSRUWVWKH&LW\¶VH[LVWLQJRSHUDWLRQV PDLQWHQDQFHSUDFWLFHVDQGSURJUDPV7KHSURSRVHGJRDOVSURYLGHDKLJKOHYHORIFRQVROLGDWHGJXLGHOLQHVDQGSURFHGXUHVIRUDOODVSHFWVRIWKH&LW\¶VVHZHUV\VWHPPDQDJHPHQW7KH6603ZLOOFRQWULEXWHWRWKHSURSHUPDQDJHPHQWRIWKHFROOHFWLRQV\VWHPDQGDVVLVWWKH&LW\LQPLQLPL]LQJWKHIUHTXHQF\DQGLPSDFWVRI662VE\SURYLGLQJJXLGDQFHIRUDSSURSULDWHPDLQWHQDQFHFDSDFLW\PDQDJHPHQWDQGHPHUJHQF\UHVSRQVH
(OHPHQW

25*$1,=$7,21
7KLVVHFWLRQRIWKH6603LGHQWLILHV&LW\VWDIIZKRDUHUHVSRQVLEOHIRULPSOHPHQWLQJWKLV6603UHVSRQGLQJWR662HYHQWVDQGPHHWLQJWKH662UHSRUWLQJUHTXLUHPHQWV7KLVVHFWLRQDOVRLQFOXGHVWKHGHVLJQDWLRQRIWKH$XWKRUL]HG5HSUHVHQWDWLYHWRPHHW6:5&% UHTXLUHPHQWVIRUFRPSOHWLQJDQGFHUWLI\LQJVSLOOUHSRUWV 5HJXODWRU\5HTXLUHPHQWVIRU2UJDQL]DWLRQ(OHPHQW6:5&%5HTXLUHPHQW 7KHFROOHFWLRQV\VWHPDJHQF\¶V6603PXVWLGHQWLI\

7KHQDPHRIWKHUHVSRQVLEOHRUDXWKRUL]HGUHSUHVHQWDWLYH 7KHQDPHVDQGWHOHSKRQHQXPEHUVIRUPDQDJHPHQWDGPLQLVWUDWLYHDQG PDLQWHQDQFHSRVLWLRQVUHVSRQVLEOHIRULPSOHPHQWLQJVSHFLILFPHDVXUHVLQWKH6603SURJUDP,QFOXGHOLQHVRIDXWKRULW\DVVKRZQLQDQRUJDQL]DWLRQFKDUWRUVLPLODUGRFXPHQWZLWKDQDUUDWLYHH[SODQDWLRQ DQG
7KHFKDLQRIFRPPXQLFDWLRQIRUUHSRUWLQJ662VIURPUHFHLSWRIDFRPSODLQW RURWKHULQIRUPDWLRQLQFOXGLQJWKHSHUVRQUHVSRQVLEOHIRUUHSRUWLQJ662VWR WKH6WDWHDQG5HJLRQDO:DWHU%RDUGDQGRWKHUDJHQFLHVLIDSSOLFDEOH VXFKDV&RXQW\+HDOWK2IILFHU&RXQW\(QYLURQPHQWDO+HDOWK$JHQF\5HJLRQDO:DWHU4XDOLW\&RQWURO%RDUGDQGRU6WDWH2IILFHRI(PHUJHQF\ 2(6

$XWKRUL]HG5HSUHVHQWDWLYH7KLVVHFWLRQSURYLGHVDGHVFULSWLRQRIWKH&2:::7'RUJDQL]DWLRQDOVWUXFWXUHIRUGHYHORSLQJDQGLPSOHPHQWLQJWKH6603DQGWKHFKDLQRIFRPPXQLFDWLRQIRUUHSRUWLQJDQGUHVSRQGLQJWRRYHUIORZV7KH&LW\¶VDXWKRUL]HGUHSUHVHQWDWLYHLQDOOZDVWHZDWHUFROOHFWLRQV\VWHPPDWWHUVLVWKH3XEOLF:RUNV'LUHFWRU7KH3XEOLF:RUNV'LUHFWRULVDXWKRUL]HGWRFHUWLI\HOHFWURQLFVSLOOUHSRUWVVXEPLWWHGWRWKH6WDWH%RDUG0DWW(ULFNVRQLVWKH3XEOLF:RUNV'LUHFWRU0DQDJHURIWKH'HSDUWPHQWRI3XEOLF:RUNVDQGWKH::73&ROOHFWLRQ¶V'LYLVLRQZKRKDVRYHUDOOUHVSRQVLELOLW\IRUWKHPDQDJHPHQWRIWKH&LW\RI:DWHUIRUG::732SHUDWLRQV'LYLVLRQ0U(ULFNVRQLVUHVSRQVLEOHIRUWKHGHYHORSPHQWDQGLPSOHPHQWDWLRQRIWKH&LW\RI:DWHUIRUG6603,WLVDQWLFLSDWHGWKDWDPDMRULW\RIWKHUHPDLQLQJ6603VHFWLRQVZLOOEHSUHSDUHGE\DQRXWVLGHFRQWUDFWRUZLWKDVVLVWDQFHIURP&LW\6WDIIDQGWKH&LW\(QJLQHHU7KH&KLHIRI3ODQW2SHUDWLRQVLVDXWKRUL]HGWRDFWLQWKH3XEOLF:RUNV'LUHFWRUVDEVHQFHUHODWLQJWRDQ\PDWWHUZKLFKPD\DULVHLQYROYLQJWKHZDVWHZDWHUFROOHFWLRQV\VWHPGLYLVLRQ
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
'HVFULSWLRQRI*HQHUDO5HVSRQVLELOLWLHV3XEOLF:RUNV'LUHFWRU 3ODQVRUJDQL]HVGLUHFWVDQGVXSHUYLVHVDOOSXEOLFZRUNVDFWLYLWLHVRIWKH&LW\7KH3XEOLF:RUNV'LUHFWRUDGYLVHVWKH&LW\&RXQFLODQG3ODQQLQJ&RPPLVVLRQRQHQJLQHHULQJDQGSXEOLFZRUNVPDWWHUVLQFOXGLQJWKRVHUHODWHGWRWKHVDQLWDU\VHZHUFROOHFWLRQV\VWHP3UHSDUHVDQGFRQWUROVGHSDUWPHQWEXGJHW7KH3XEOLF:RUNV'LUHFWRUDOVRUHYLHZVSURMHFWSODQVDQGVSHFLILFDWLRQVIRUSXEOLFZRUNVSURMHFWV&RQIHUVZLWKHQJLQHHULQJFRQVXOWDQWVDQGRIILFLDOVRIRWKHUSXEOLFZRUNVGHSDUWPHQWV &LW\(QJLQHHU
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

)LJXUH$
&RQWDFW1XPEHUVIRU662&KDLQRI&RPPXQLFDWLRQ
&RQWDFW 7HOHSKRQH1XPEHU&LW\+DOO

6KHULII¶V'LVSDWFK

3XEOLF:RUNV'LUHFWRU

3XEOLF:RUNV6XSHUYLVRU±2SHUDWLRQV

:DVWHZDWHU7UHDWPHQW&KLHI3ODQW2SHUDWRU

6HZHU2Q&DOO3HUVRQQHO

&DOLIRUQLD5HJLRQDO:DWHU4XDOLW\&RQWURO%RDUG *HQHUDO$VVLVWDQFH
'LDQD0HVVLQD

&DOLIRUQLD'HSDUWPHQWRI)LVK *DPH
*HQHUDO$VVLVWDQFH
%LOO/RXGHUPLON5HJLRQDO0DQDJHU

H[W
6WDQLVODXV&RXQW\'HSDUWPHQWRI(QYLURQPHQWDO+HDOWK
*HQHUDO$VVLVWDQFH
'HQLVH:RRG0DQDJHU

7DEOH
3XEOLF:RUNV'HSDUWPHQW2UJDQL]DWLRQ
&LW\&RXQFLO
&LW\$GPLQLVWUDWRU
3XEOLF:RUNV'LUHFWRU
3XEOLF:RUNV6XSHUYLVRU
0DLQWHQDQFH:RUNHU,,,0DLQWHQDQFH:RUNHU,,,
&KLHIRI3ODQW2SHUDWLRQV
::732SHUDWRU
::732SLQ
7UDLQLQJ
0DLQWHQDQFH:RUNHUV
0DLQWHQDQFH:RUNHU,0DLQWHQDQFH:RUNHU,0DLQWHQDQFH:RUNHU, 2UJDQL]DWLRQ&KDUWRI:DVWHZDWHU6WDII
&KLHIRI3ODQW
2SHUDWLRQV
::73
2SHUDWRU
::73
2SHUDWRULQ
7UDLQLQJ
0DLQWHQDQFH
:RUNHUV
:DWHU7UHDWPHQW
2SHUDWRUV
:DWHU'LVWULEXWLRQ
2SHUDWRUV

7DEOH
,PSOHPHQWDWLRQ5HVSRQVLELOLWLHV
66030HDVXUH 5HVSRQVLEOH3HUVRQ 5ROH
*RDOV
,PSOHPHQWDWLRQDQGPDQDJHPHQWRIWKH6603
3XEOLF:RUNV'LUHFWRU
3URYLGHVRYHUVLJKWRIWKH6603
(QVXUHWKDWWKHFROOHFWLRQV\VWHPLVPDLQWDLQHGDQGRSHUDWHGWRUHGXFHRUHOLPLQDWH662V 2YHUVLJKWRIDOODVSHFWVRIWKHFROOHFWLRQV\VWHP
2UJDQL]DWLRQ
&KDLQRI&RPPXQLFDWLRQ 3XEOLF:RUNV'LUHFWRU
'HWHUPLQHVWKHFKDLQRIFRPPDQGIRUUHVSRQGLQJWR662V 2UJDQL]DWLRQ&KDUW 3XEOLF:RUNV'LUHFWRU .HHSVRUJDQL]DWLRQFKDUWXS WRGDWH623 IRU6625HSRUWLQJ *XLGHOLQHV
3XEOLF:RUNV'LUHFWRU .HHSVUHSRUWLQJJXLGHOLQHV XSWRGDWHWRHQVXUH FRPSOLDQFHZLWKWKH:'5
6625HSRUWLQJ
::7'&ROOHFWLRQ6WDII
6HH2UJ&KDUW

5HVSRQGVWRVHZDJHVSLOOVGD\VZHHNKRXUVGD\
3XEOLF:RUNV'LUHFWRU
(QVXUHVWKHUHSRUWLQJJXLGHOLQHVDUHIROORZHGDQGXSGDWHG5HSRUWVVSLOOVRQ&,:46/52/HDG 3XEOLF:RUNV6XSHUYLVRU /52$OWHUQDWLYHIRU UHSRUWLQJRQ&,:46
66030HDVXUH 5HVSRQVLEOH3HUVRQ 5ROH
/HJDO$XWKRULW\
(QVXUHWKH0XQLFLSDOFRGHLVXSGDWHGDQGSUHYHQWVLOOLFLWGLVFKDUJHVUHTXLUHVSURSHUGHVLJQDQGFRQVWUXFWLRQDQGDOORZVIRULQVSHFWLRQDQGPDLQWHQDQFHDQGHQIRUFHPHQWRILQIUDFWLRQVRIWKHFRGH 3XEOLF:RUNV'LUHFWRU 5HYLHZ0XQLFLSDO&RGH DQGXSGDWHDVQHHGHG (QVXUHWKH0XQLFLSDO&RGHSUHYHQWVWKHGLVFKDUJHRIIDWVRLOVDQGJUHDVHDQGRWKHUGHEULV 3XEOLF:RUNV'LUHFWRU
5HYLHZVWKH0XQLFLSDO&RGHDQGXSGDWHVFRGHDVQHHGHG
(QIRUFHPHQWRIQRQSHUPLWWHGGLVFKDUJHVWRWKHVHZHU
,QYHVWLJDWHVLOOLFLWGLVFKDUJHVWRWKHFROOHFWLRQV\VWHP,VVXHV1RWLFHRIYLRODWLRQVRUWDNHVOHJDODFWLRQWRYLRODWRUV 2SHUDWLRQV 0DLQWHQDQFH3URJUDP
0DLQWDLQLQJFROOHFWLRQV\VWHPPDSV 3XEOLF:RUNV6XSHUYLVRU :RUNVZLWKVWDIIDQG*,6 VWDIIWRPDLQWDLQPDSV3UHYHQWDWLYHRSHUDWLRQ PDLQWHQDQFH 3XEOLF:RUNV6XSHUYLVRU:DVWHZDWHU7UHDWPHQW2SHUDWRU
8SGDWHVWKHGHVFULSWLRQWKHSURJUDPDVQHHGHG
'HYHORSPHQWRIDUHKDELOLWDWLRQ UHSODFHPHQWSODQ
3XEOLF:RUNV6XSHUYLVRU:DVWHZDWHU7UHDWPHQW2SHUDWRU
&RQWLQXHVWKHFXUUHQWSURJUDPLQSODFH 3URYLGHWUDLQLQJWR::& VWDII 3URYLGHHTXLSPHQW UHSODFHPHQWSDUWLQYHQWRULHV

66030HDVXUH 5HVSRQVLEOH3HUVRQ 5ROH
'HVLJQ 3HUIRUPDQFH3URYLVLRQV
'HVLJQ &RQVWUXFWLRQ6WDQGDUGVIRUDOODVSHFWVRIWKHFROOHFWLRQV\VWHP &LW\(QJLQHHU
:RUNVWRJHWKHUWRXSGDWHGHVLJQDQGFRQVWUXFWLRQVWDQGDUGV ,QVSHFWLRQ WHVWLQJVWDQGDUGV &LW\(QJLQHHU
&RQWLQXHVFXUUHQWLQVSHFWLRQ WHVWLQJSUDFWLFHV
2YHUIORZ(PHUJHQF\5HVSRQVH3ODQ
3URFHGXUHVIRUQRWLILFDWLRQUHVSRQVHQRWLILFDWLRQRIDSSURSULDWHDJHQFLHV 3XEOLF:RUNV'LUHFWRU3XEOLF:RUNV6XSHUYLVRU
7KH&LW\KDVVSLOOUHSRUWLQJJXLGHOLQHVLQSODFH7KHVHZLOOEHXSGDWHGWRLQFOXGH&,:46UHSRUWLQJ7KHFXUUHQWSURFHGXUHVIRUUHVSRQGLQJWRDVSLOOFRQWDLQPHQWSUHYHQWLQJWKHGLVFKDUJHZLOOEHSXWLQZULWWHQIRUP 7UDLQLQJRIDOOVWDIILQYROYHGLQHPHUJHQF\UHVSRQVHLQFOXGLQJUHVSRQVHSURFHGXUHVQRWLILFDWLRQRIDJHQFLHVDQGFRQWDLQLQJDQGSUHYHQWLQJWKHGLVFKDUJHRIZDVWHZDWHUWRDZDWHUZD\ &RQGXFWDQQXDOUHIUHVKHUWUDLQLQJ
)DWV2LOV *UHDVH&RQWURO3URJUDP
$GPLQLVWUDWLRQ LPSOHPHQWDWLRQRIWKH&LW\¶V)2*SURJUDPZKLFKLQFOXGHVSXEOLFHGXFDWLRQLQVSHFWLRQRIIDFLOLWLHVZKLFKSURGXFH)2* ZRUNLQJZLWK::&WRLGHQWLI\DUHDVSURQHWR)2*EORFNDJHV 3XEOLF:RUNV'LUHFWRU&KLHIRI3ODQW2SHUDWLRQV:DVWHZDWHU7UHDWPHQW2SHUDWRU
66030HDVXUH 5HVSRQVLEOH3HUVRQ 5ROH
)DWV2LOV *UHDVH&RQWURO3URJUDP&RQWLQXHG
/HJDODXWKRULW\WRSURKLELWGLVFKDUJHV LGHQWLI\PHDVXUHVWRSUHYHQW662V EORFNDJHV 3XEOLF:RUNV'LUHFWRU/HJDO'HSDUWPHQW 8SGDWHV0XQLFLSDO&RGHDV QHHGHG 6\VWHP(YDOXDWLRQ &DSDFLW\$VVXUDQFH3ODQ
(YDOXDWLRQRIV\VWHPWRGHWHUPLQHDUHDVRIGHILFLHQFLHV 3XEOLF:RUNV'LUHFWRU&LW\(QJLQHHU
7KH&LW\KDVD:DVWHZDWHU0DVWHU3ODQLVLQSODQH
'HVLJQFULWHULD 3XEOLF:RUNV'LUHFWRU &LW\(QJLQHHU 'HVLJQFULWHULRQLV LGHQWLILHGLQWKH:DVWHZDWHU 0DVWHU3ODQ&DSDFLW\HQKDQFHPHQWPHDVXUHV 3XEOLF:RUNV'LUHFWRU&LW\(QJLQHHU
(YDOXDWLRQRIK\GUDXOLFFDSDFLW\LVFXUUHQWO\GRQH DQHYDOXDWLRQSODQZLOOEHGHYHORSHG &DSLWRO,PSURYHPHQW3URJUDP
3XEOLF:RUNV'LUHFWRU&LW\(QJLQHHU
7KH&LW\FXUUHQWO\KDVD\HDU&,3SODQLQSODFH
0RQLWRULQJ0HDVXUHPHQW 3URJUDP0RGLILFDWLRQV
0DLQWHQDQFHRILQIRUPDWLRQPRQLWRULQJDQGDVVHVVLQJWKHHIIHFWLYHQHVVRIWKHSURJUDP 3XEOLF:RUNV'LUHFWRU 7KH&LW\ FXUUHQWO\KDVD
FRPSXWHUL]HGPDQDJHPHQWV\VWHPZKLFKLVXVHGE\WKH&2:$GPLQVWDIIDQG 6XSHUYLVRU 8SGDWLQJWKHSURJUDPDQG
,GHQWLI\LQJWUHQGV
6603$XGLWV
&RQGXFWSHULRGLFLQWHUQDODXGLWVWRGHWHUPLQHWKHHIIHFWLYHQHVVRIWKH6603DQGFRPSOLDQFHZLWKWKH6603 3XEOLF:RUNV'LUHFWRU
'HYHORSDQDXGLWFKHFNOLVWFRQGXFWLQWHUQDODXGLWDWOHDVWHYHU\WZR\HDUVNHHSDUHSRUWRIWKHILQGLQJVRQILOHDQGLQLWLDWHDQ\FRUUHFWLYHDFWLRQVQHHGHG
66030HDVXUH 5HVSRQVLEOH3HUVRQ 5ROH
&RPPXQLFDWLRQ3URJUDP
&RPPXQLFDWLRQZLWKWKHSXEOLFRQWKHGHYHORSPHQWLPSOHPHQWDWLRQ SHUIRUPDQFHRILWV6603 3XEOLF:RUNV'LUHFWRU:HEPDVWHU
:LOOVROLFLWSXEOLFLQSXWWKURXJKWKH&LW\¶VZHEVLWHSXEOLFPHHWLQJVDQGQHZVOHWWHU
7DEOH
6SLOO5HSRUWLQJ5HVSRQVLELOLWLHV
6SLOOIURPSULYDWH
ODWHUDO
$IWHU+RXUVRU
:HHNHQGV
1RUPDO%XVLQHVV
+RXUV
6KHULII'LVSDWFKRU
$QVZHU6HUYLFH
QRWLILHVRQFDOOVWDII
3HUVRQUHFHLYLQJFDOO
QRWLILHV&2:VWDII
&2:RQFDOOVWDII
UHVSRQGV
6SLOO
FRQWDLQHG
GRHVQRW
UHDFK',RU
ZDWHUZD\
JDOV
6SLOOQRW
FRQWDLQHG
JDOV2U
UHDFKHV',RU
ZDWHUZD\
&2: VWDIIVXEPLWVVSLOO
UHSRUWWR3:6XSHUYLVRU
RQQH[WDYDLODEOH
ZRUNGD\3:$GPLQ
VWDIIHQWHUVSLOOLQ&LW\
GDWDEDVH
5HSRUWRQ&,:46ZLWKLQ
GD\VRIHQGRI
FDOHQGDUPRQWKLQZKLFK
662RFFXUUHG
&2:VWDII
UHVSRQGV
6SLOOQRW
FRQWDLQHG
JDOV
UHDFKHV',RU
ZDWHUZD\
6SLOO
FRQWDLQHG
GRHVQRW
UHDFK
',ZDWHUZD\
JDOV
,IUHTXLUHG
&2:VWDII
QRWLILHV
6KHULII¶V'HSW
&2:VWDII
QRWLILHV2(6
5:4&%
&2: VWDII
FRPSOHWHVSLOO
UHSRUWDQG
VXEPLWWR3:
6XSHUYLVRU
&2:VWDII
QRWLILHV2(6
5:4&%
&2(+
LPPHGLDWHO\
&2:$GPLQHQWHUVSLOOLQ
&LW\GDWDEDVH
5HSRUWRQ&,:46ZLWKLQ
GD\VRIHQGRI
FDOHQGDUPRQWKLQZKLFK
662RFFXUUHG
63,//
5(&(,9('
3URSHUW\RZQHUQRWLILHGE\
&2:VWDIIWRPDNHUHSDLU
FOHDQXSVSLOO
&2:VWDII
FRPSOHWHVVSLOO
UHSRUW HQWHUV
LQIRLQWRWKH
GDWDEDVH
6SLOOQRW
FRQWDLQHG
UHDFKHV',RU
ZDWHUZD\
6SLOO VXEPLWWHG
WR5:4&%
) *
6SLOOUHSRUWHGRQ
&,:46ZLWKLQ
GD\VE\/52
6XEPLWILQDOFHUWLILHG
UHSRUWZLWKLQGD\VRI
FRQFOXVLRQ
/52&HUWLILHVILQDO
5HSRUW
&,7<2):$7(5)25'
+$=$5'&20081,&$7,21
32/,&<
&LW\RI:DWHUIRUG
(6WUHHW32%R[

:DWHUIRUG&$

)D[
&LW\RI:DWHUIRUG

+D]DUG&RPPXQLFDWLRQ3ROLF\
7DEOHRI&RQWHQWV
$ ,QIRUPDWLRQ««««««««««««««««««««««
/LVWRI+D]DUGRXV6XEVWDQFH««««««««««««««««« 3URSRVLWLRQOLVWRI&KHPLFDOV««««««««««««««««« 0DWHULDO6DIHW\'DWD6KHHWV 06'V
««««««««««««««« /DEHOVDQGRWKHUIRUPVRI:DUQLQJ«««««««««««««««« (PSOR\HHLQIRUPDWLRQDQGWUDLQLQJ«««««««««««««««« ,QIRUPLQJ&RQWUDFWRUV««««««««««««««««««««« % $SSHQGL[$+D]DUGRXV6XEVWDQFH,QYHQWRU\/LVW«««««« & $SSHQGL[%±+D]DUG&RPPXQLFDWLRQ(PSOR\HH7UDLQLQJ 3URJUDP««««««««««««««««««««««««
' $SSHQGL[&±6DPSOH06'6«««««««««««««««
( $SSHQGL['±+RZWR5HDGD06'6««««««««««««
+$=$5'&20081,&$7,2132/,&<

$ ,1)250$7,217RHQKDQFHRXUHPSOR\HHV
KHDOWKDQGVDIHW\RXUFRPSDQ\KDGGHYHORSHGLPSOHPHQWHGDQGPDLQWDLQVDKD]DUGFRPPXQLFDWLRQSURJUDPDVUHTXLUHGE\WKH+D]DUG&RPPXQLFDWLRQV5HJXODWLRQ 7&&5

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
3URSRVLWLRQOLVWRI&KHPLFDOV7KH3XEOLF:RUNV'LUHFWRULVUHVSRQVLEOHIRUREWDLQLQJXSGDWHVRI3URSRVLWLRQOLVWHGFKHPLFDOVDQGSURYLGLQJQHZLQIRUPDWLRQWRDIIHFWHGHPSOR\HHV,QWKHFDVHRIQHZO\DGGHGFKHPLFDOVWRWKH3URSRVLWLRQOLVWZDUQLQJUHTXLUHPHQWVWDNHHIIHFWPRQWKVIURPWKHGDWHRIOLVWLQJ 0DWHULDO6DIHW\'DWD6KHHWV 06'V
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
LQXVHGRQRWKDYH06'6VRULIDQG06'6LVREYLRXVO\LQFRPSOHWHSOHDVHFRQWDFWWKH3XEOLF:RUNV'LUHFWRULPPHGLDWHO\DQGDQHZ06'6ZLOOEHUHTXHVWHGIURPWKHPDQXIDFWXUHU,IZHDUHXQDEOHWRREWDLQWKH06'6IURPWKHYHQGRUZLWKLQFDOHQGDUGD\VRIWKHUHTXHVWZHZLOOHLWKHUFDOORXUORFDO&DO26+$FRPSOLDQFHRIILFHRUZULWHWR 'LYLVLRQRI2FFXSDWLRQDO6DIHW\DQG+HDOWK'HSXW\&KLHIRI+HDOWKDQG(QJLQHHULQJ6HUYLFHV
32%R[6DQ)UDQFLVFR&$
,IDQ\RQHKDVDVSHFLILFTXHVWLRQRUQHHGVDGGLWLRQDOLQIRUPDWLRQRQDQ06'6SOHDVHFDOOWKH&DO26+$&RQVXOWDWLRQ6HUYLFHDW
RUWKH2FFXSDWLRQDO
+HDOWK%UDQFKRI+(6,6DW
(QJOLVK
RU

6SDQLVK
,IZHXVHDOWHUQDWLYHVRWKHUWKDQSDSHU06'6V²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
/DEHO,QIRUPDWLRQ 3ULPDU\&RQWDLQHU 6HFRQGDU\&RQWDLQHU ,GHQWLW\RIWKHKD]DUGRXVVXEVWDQFH
V
√ √$SSOLFDEOHKD]DUGZDUQLQJV √ √1DPHDQGDGGUHVVRIWKHPDQXIDFWXUHU √ 7RDGGUHVVH[SRVXUHVWR3URSRVLWLRQFKHPLFDOVWKH3XEOLF:RUNV'LUHFWRUZLOOSURYLGHFOHDUDQGUHDVRQDEOHZDUQLQJVWRLQGLYLGXDOVSULRUWRH[SRVXUHE\PHDQVRISRVWLQJVLJQVFRQVSLFXRXVO\ODEHOLQJFRQVXPHUSURGXFWVDQGWUDLQLQJHPSOR\HHV,IDSSOLFDEOHWKH3XEOLF:RUNV'LUHFWRUZLOODUUDQJHIRUODEHOVVLJQVDQGRWKHUZDUQLQJVWREHSULQWHGLQRWKHUODQJXDJHV (PSOR\HHLQIRUPDWLRQDQGWUDLQLQJ(PSOR\HHVDUHWRDWWHQGDKHDOWKDQGVDIHW\WUDLQLQJVHVVLRQVHWXSE\WKH3XEOLF:RUNV'LUHFWRUSULRUWRVWDUWLQJZRUN7KLVWUDLQLQJVHVVLRQZLOOSURYLGHLQIRUPDWLRQ RQWKHIROORZLQJ

x 7KHUHTXLUHPHQWVRIWKHKD]DUGFRPPXQLFDWLRQUHJXODWLRQLQFOXGLQJWKH HPSOR\HHV
ULJKWVXQGHUWKHUHJXODWLRQ
x 7KHORFDWLRQDQGDYDLODELOLW\RIWKHZULWWHQKD]DUGFRPPXQLFDWLRQSURJUDP
x $Q\RSHUDWLRQLQWKHLUZRUNDUHDLQFOXGLQJQRQURXWLQHWDVNVZKHUH KD]DUGRXVVXEVWDQFHVRU3URSRVLWLRQFDUFLQRJHQVUHSURGXFWLYHWR[LQVDUHSUHVHQWDQGH[SRVXUHVDUHOLNHO\WRRFFXU x 0HWKRGVDQGREVHUYDWLRQWHFKQLTXHVXVHGWRGHWHUPLQHWKHSUHVHQFHRUUHOHDVH RIKD]DUGRXVVXEVWDQFHVLQWKHZRUNDUHD
x 3URWHFWLYHSUDFWLFHVWKHFRPSDQ\KDVWDNHQWRPLQLPL]HRUSUHYHQWH[SRVXUH WRWKHVHVXEVWDQFHV
x +RZWRUHDGODEHOVDQGUHYLHZ06'6VWRREWDLQKD]DUGLQIRUPDWLRQx 3K\VLFDODQGKHDOWKHIIHFWVRIWKHKD]DUGRXVVXEVWDQFHVx 6\PSWRPVRIRYHUH[SRVXUHx 0HDVXUHVHPSOR\HHVQHHGWRSXWLQWRSUDFWLFHWRUHGXFHRUSUHYHQWH[SRVXUHWR WKHVHKD]DUGRXVVXEVWDQFHVE\HQJLQHHULQJFRQWUROVZRUNSUDFWLFHVDQGXVHRISHUVRQDOSURWHFWLYHHTXLSPHQW x (PHUJHQF\DQGILUVWDLGSURFHGXUHVWRIROORZLIHPSOR\HHVDUHH[SRVHGWR KD]DUGRXVVXEVWDQFHV
x 7KHORFDWLRQDQGLQWHUSUHWDWLRQLIQHHGHGRIZDUQLQJVLJQVRUSODFDUGVWR FRPPXQLFDWHWKDWDFKHPLFDONQRZQWRFDXVHFDQFHURUUHSURGXFWLYHWR[LFLW\LVXVHGLQWKHZRUNSODFH ,QIRUPLQJ&RQWUDFWRUV7RHQVXUHWKDWRXWVLGHFRQWUDFWRUVZRUNVDIHO\LQRXUSODQWDQGWRSURWHFWRXUHPSOR\HHVIRUPFKHPLFDOVXVHGE\RXWVLGHFRQWUDFWRUVWKH3XEOLF:RUNV'LUHFWRULVUHVSRQVLEOHIRUJLYLQJDQGUHFHLYLQJWKHIROORZLQJLQIRUPDWLRQIURPFRQWUDFWRUV
x +D]DUGRXVVXEVWDQFHVLQFOXGLQJ3URSRVLWLRQFKHPLFDOVWRZKLFKWKH\ PD\EHH[SRVHGZKLOHRQWKHMREVLWHDVZHOODVVXEVWDQFHVWKH\ZLOOEHEULQJLQJLQWRWKHZRUNSODFH 7RWKLVHQGZHZLOOSURYLGHFRQWUDFWRUVZLWKLQIRUPDWLRQRQRXUODEHOLQJV\VWHPDQGDFFHVVWR06'6V
x 3UHFDXWLRQVDQGSURWHFWLYHPHDVXUHVWKHHPSOR\HHVPD\WDNHWRPLQLPL]H WKHSRVVLELOLW\RIH[SRVXUH
,IDQ\RQHKDVTXHVWLRQVDERXWWKLVSODQSOHDVHFRQWDFWWKH3XEOLF:RUNV'LUHFWRU2XUSODQZLOOEHPDLQWDLQHGE\WKH3XEOLF:RUNV'LUHFWRUWRHQVXUHWKDWWKHSROLFLHVDUHFDUULHGRXWDQGWKHSODQLVHIIHFWLYH
$33(1',;$
+$=$5'28668%67$1&(,19(1725</,67
+D]DUGRXV6XEVWDQFH 2SHUDWLRQ:RUN$UHD 06'6

$33(1',;%
+$=$5'&20081,&$7,21(03/2<((75$,1,1*352*5$0
&RPSDQ\
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB'DWH
BBBBBBBBBBBBBBBBBB'HSDUWPHQW
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
DQGLIDSSOLFDEOHWKH3URSRVLWLRQOLVWRIFKHPLFDOV5HDGLQJ/DEHOV:DUQLQJVDQG06'6V/DEHOV$SURGXFWODEHORQERWKWKHRULJLQDODQGVHFRQGDU\FRQWDLQHUVVKRXOGEHUHDGEHIRUHZRUNLQJZLWKWKHPDWHULDO(DFKODEHOKDVWZRLPSRUWDQWSLHFHVRILQIRUPDWLRQ
,GHQWLW\RIWKHKD]DUGRXVVXEVWDQFH
+D]DUGZDUQLQJV
7KHODEHORQWKHRULJLQDOFRQWDLQHUDOVRJLYHVWKHQDPHDQGDGGUHVVRIWKHPDQXIDFWXUHV7KHODEHOVKRXOGDFWDVDYLVXDOUHPLQGHURIWKHLQIRUPDWLRQZHKDYHSUHVHQWHGLQWKLVWUDLQLQJVHVVLRQDQGRIWKHGHWDLOHGLQIRUPDWLRQRQWKH06'6
3URSRVLWLRQZDUQLQJV7KHVHDUHSURYLGHGWR\RXSULRUWRH[SRVXUHLQWKHIRUPRIODEHOVSODFDUGVHPSOR\HHWUDLQLQJDQGWKHOLNHVRWKDW\RXNQRZWKDWFHUWDLQFKHPLFDOVLQ\RXUZRUNSODFHDUHNQRZQWRWKHVWDWHWRFDXVHFDQFHUELUWKGHIHFWVRURWKHUUHSURGXFWLYHKDUP,WLVHVVHQWLDOWR\RXUVDIHW\WKDW\RXUHDGWKHKD]DUGZDUQLQJDQGXVHWKHKD]DUGRXVVXEVWDQFHVRQO\ZLWKLQWKHSUHVFULEHGJXLGHOLQHV4XHVWLRQVFRQFHUQLQJDQ\RIWKHZDUQLQJPHVVDJH V
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
&KHPLFDODQGSK\VLFDOSURSHUWLHVRIKD]DUGRXVVXEVWDQFHVVXFKDVYDSRU SUHVVXUHRUVSHFLILFJUDYLW\
3K\VLFDOKD]DUGRXVRIWKHFKHPLFDOVVXFKDVIODPPDELOLW\RUUHDFWLYLW\ +HDOWKKD]DUGVRIWKHKD]DUGRXVVXEVWDQFHVVXFKDVVLJQVDQGV\PSWRPV RIH[SRVXUH
5RXWVRIHQWU\ 3URWHFWLYHPHDVXUHVVXFKDVZRUNSUDFWLFHVHQJLQHHULQJFRQWUROVDQGXVH RISHUVRQDOSURWHFWLYHHTXLSPHQW
0HWKRGVWRGHWHFWWKHUHOHDVHRIDKD]DUGRXVVXEVWDQFHVLQWKHZRUNDUHD (PHUJHQF\DQGILUVWDLGSURFHGXUHV <RXFDQUHDGWKH&DOLIRUQLD+D]DUG&RPPXQLFDWLRQ5HJXODWLRQIRUDGGLWLRQDOLQIRUPDWLRQRQDQ\VSHFLILFSURJUDPHOHPHQW

$33(1',;&
6$03/(06'6
0$7(5,$/6$)(7<'$7$6+((7

$33(1',;'
+2:725($'$06'6

'$,/<,163(&7,21&+(&./,67
&LW\RI:DWHUIRUG(6WUHHW:DWHUIRUG&$
ZZZFLW\RIZDWHUIRUGRUJ
,16758&7,216
6LWH
%HDUG3DUN3OD\JURXQG,QVSHFWRUV1DPH
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 'DWH
BBBBBBBBBBBBBB7LPH
BBBBBBBBBBBBBBBB0DLQWHQDQFH:RUNHUVILOORXWWRLGHQWLI\DQGUHSRUWSRWHQWLDOKD]DUGVRQWKHSOD\JURXQG85*(17$&7,21 ,IDVHULRXVXQVDIHFRQGLWLRQLVSHUFHLYHGWKHLQVSHFWRUVKRXOGVHFXUHWKHDUHDDQGRUSOD\HTXLSPHQWDQGLPPHGLDWHO\QRWLI\WKH3XEOLF:RUNV6XSHUYLVRUIRUDSSURSULDWHFRUUHFWLYHDFWLRQ 6(&7,21 Checklist
<(6 12
,67+(3/$<$5($)5((2)75$6+25)25(,*12%-(&76"$5(7+(75$6+5(&(37$&/(6$1'6855281',1*$5($6)5((2)63,//6",67+(3/$<$5($)5((2)086+52206$1'27+(5)81*,"+$9($//%52.(1256+$53%5$1&+(6%((15(029(')52075((6$1'6+58%6"$5(,55,*$7,21+($'65(75$&7('"$5(3/$<*5281''5,1.,1*)2817$,16&/($181&/2**('$1')81&7,21,1*",67+(3/$<$5($)5((2),16(&7,1)(67$7,21",67+(3/$<$5($)5((2)52'(176$1'27+(59(57(%5$7(3(676",67+(/226(),//6$)(7<685)$&,1* :22'&+,3672´'(37+
)5((2)/2:$5($6$1'+2/(6",67+(/226(),//6$)(7<685)$&,1*)5((2)$1,0$/)(&(6$1'+,''(1'(%5,6",67+(/226(),//6$)(7<685)$&,1*&29(5,1*+$5'685)$&(6$1')227,1*6%(/2:6/,'(66:,1*6(7&"$5(+$5'685)$&('3$7+:$<6)5((2)6/,33(5<0$7(5,$/668&+$6:$7(56$1'685)$&(0$7(5,$/(7&",67+(3/$<$5($)5((2)75,3+$=$5'668&+$65227652&.6)$%5,&(7&"$5(3/$<(48,30(173/$7)250667$,5625581*6)5((2)6/,33(5<0$7(5,$/6" :$7(56$1'/($9(6(7&"
,67+(3/$<$5($)5((2)/226(0,66,1*25%52.(13$576$1'9$1'$/,60",67+(3/$<$5($$1'(48,30(17)5((2)6+$5332,176&251(56$1'('*(6"+$60,6&(//$1(2860$7(5,$/68&+$6523(66+((76&$5'%2$5'(7&%((15(029(')520(48,3" *(1(5$/&21',7,21$33($5$1&( *22' )$,5 3225 &200(176
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 0217+/<3/$<(48,30(17
,163(&7,21&+(&./,67
&LW\RI:DWHUIRUG(6WUHHW:DWHUIRUG&$
ZZZFLW\RIZDWHUIRUGRUJ
6LWH
%HDUG3DUN3OD\JURXQG,QVSHFWRUV1DPH
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 'DWH
BBBBBBBBBBBBBB7LPH
BBBBBBBBBBBBBBBB
6(&7,21 Play Structure
NIR = Needs Immediate Repair NR = Needs Repair <(6 1,5$UHWKHVWUXFWXUHVVWDEOHDQGZLWKRXWVHYHUHVWUXFWXUDOGHWHULRUDWLRQVXFKDVDWWKHIRRWLQJVRUMRLQWV"$UHWKHVWUXFWXUHVIUHHRIORRVHPLVVLQJRUEURNHQSDUWVDQGYDQGDOLVP"$UHWKHVWUXFWXUHVIUHHRIVKDUSSRLQWVFRUQHUVRUHGJHV",VDOOKDUGZDUHSUHVHQWVHFXUHO\DWWDFKHGDQGIUHHRIVLJQLILFDQWZHDU" &KHFNVKDFNOHVULQJVOLQNVHWF
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
$UHUXQJVVHFXUHO\IL[HGVRWKDWWKH\GRQRWURWDWH"$UHEHDULQJVLQJRRGFRQGLWLRQDQGZHOOOXEULFDWHG"$UHORFNZDVKHUVVHOIORFNLQJQXWVRURWKHUORFNLQJPHDQVSURYLGHGIRUDOOQXWVDQGEROWVWRSUHYHQWWKHPIURPGHWDFKPHQW"$UHWKHVWUXFWXUHVIUHHRIVWDQGLQJZDWHU",VWKHUHDWOHDVWVL[IHHWRIFOHDU]RQHEHWZHHQHDFKSLHFHRISOD\HTXLSPHQW"$UHSOD\VWUXFWXUHVIUHHRIDQ\H[FHVVLYHZHDURIDQ\FRPSRQHQWRUVOLGH"$UHWKHSOD\VWUXFWXUHVIUHHRIDQ\HQWUDSPHQWSLQFKRUFUXVKSRLQWV"$UHWKHVWUXFWXUHVIUHHRIDQ\EURNHQVXSSRUWVRUDQFKRUV"$UHSLSHHQGVIUHHRIPLVVLQJSOXJVRUFDSV"$UHWKHVWUXFWXUHVIUHHRIEURNHQFODPSV"$UHWKHYLQ\OFRDWHGSODWIRUPV GHFNVIUHHRIDQ\YLVLEOHFUDFNVRUSHHOLQJ",VWKHHTXLSPHQWIUHHRIDQ\PLVVLQJUXQJVRUUDLOV" 6(&7,21 Swings
NIR = Needs Immediate Repair NR = Needs Repair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hemed Structure / Climber
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lides
<(6 1,5 15
,VWKHVDIHW\VXUIDFLQJPDWHULDODGHTXDWHDWWKHVOLGHH[LW QRWZRUQDZD\
",VDVLWGRZQWUDQVLWLRQSODWIRUPSUHVHQW",VWKHVOLGHIUHHRIDQ\ORRVHPLVVLQJUXVWHGEROWVRUKDQGUDLOV"'RHVDQDGHTXDWHXVH]RQHH[LVWRQDOOVLGHVRIWKHVOLGH" 6(&7,21 General Maintenance & Inspection
<(6 1,5 15
3LFQLFWDEOHVVHDWV WRSV%%4*ULOOV'ULQNLQJ)RXQWDLQV6RFFHU*RDOV7UDVK&RQWDLQHUV$SSHDUDQFH &OHDQOLQHVVRI5HVWURRPV <(6 1,5 15
6PDOO3DYLOLRQ /DUJH3DYLOLRQ
OLJKWVHOHFWULFDOFRYHUVVZLWFKHVHWF
2XWGRRUH[HUFLVHHTXLSPHQWDQGVLJQDJH3DUN*DWHV3DUN6LJQDJH 1R3DUNLQJ1DPH%DOOILHOG3OD\JURXQGHWF
3DUNLQJEORFNV SRVWV9DQGDOLVP *UDIILWL%OHDFKHUV%ROWVQXWVERDUGV'XJRXW%HQFKHV%ROWVQXWVERDUGV3DUN%HQFKHV7UHHV GHDGEURNHQOLPEVQHHGWULPPLQJKD]DUGVHWF

127(6
$ODGGHULVUHTXLUHGWRFKHFNVRPHRIWKHHTXLSPHQWVXFKDVVZLQJKDQJDUV,I\RXKDYHDQ\TXHVWLRQVRUFRPPHQWVDERXWWKLVFKHFNOLVWSOHDVHGLVFXVVWKHLWHP V
ZLWK\RXU6XSHUYLVRU
&,7<2):$7(5)25'
3/$<*5281',163(&7,21
32/,&<
&LW\RI:DWHUIRUG
(6WUHHW32%R[

:DWHUIRUG&$

)D[

&LW\RI:DWHUIRUG
3OD\JURXQG,QVSHFWLRQ3ROLF\
7DEOHRI&RQWHQWV
$ 3XUSRVH«««««««««««««««««««««««« % 6FRSH««««««««««««««««««««««««« & 'HILQLWLRQV««««««««««««««««««««««« ' 5HVSRQVLELOLW\««««««««««««««««««««« 3:6XSHUYLVRU ««««««««««««««««««««« 0DLQWHQDQFH:RUNHUV«««««««««««««««««« 3:'LUHFWRU«««««««««««««««««««««« ( 7UDLQLQJ«««««««««««««««««««««««
0DLQWHQDQFH:RUNHUV««««««««««««««««««
) ,QVSHFWLRQV«««««««««««««««««««««««
0DLQWHQDQFH:RUNHUV««««««««««««««««««
* )RUPV««««««««««««««««««««««««« + 5HIHUHQFHV««««««««««««««««««««««« , $SSHQGL[$ 'DLO\,QVSHFWLRQ&KHFNOLVW«««««««««« - $SSHQGL[%± :HHNO\6DIHW\6XUIDFLQJ,QVSHFWLRQ&KHFNOLVW«« . $SSHQGL[&± 0RQWKO\3OD\(TXLSPHQW,QVSHFWLRQ&KHFNOLVW«« / $SSHQGL['± 3OD\JURXQG 0DLQWHQDQFH5HFRUG««««««« 0$SSHQGL[( 0LUDFOH© 6DIHW\%URFKXUH«««««««««
3/$<*5281',163(&7,2132/,&<
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²86&RQVXPHU3URGXFWV6DIHW\&RPPLVVLRQ&36&SXEOLVKHVD+DQGERRNRQ3OD\JURXQG6DIHW\DQGLVDUHFRJQL]HGOHDGHUDORQJZLWKWKH$670IRUGHYHORSLQJVWDQGDUGVIRUSXEOLFSOD\JURXQGVDQGSOD\JURXQGHTXLSPHQW,QVSHFWLRQV3HULRGLF²,QVSHFWLRQRISOD\JURXQGVDQGHTXLSPHQWRQDUHJXODUEDVLVVXFK DVZHHNO\PRQWKO\HWF7KHIUHTXHQF\DQGW\SHRILQVSHFWLRQLVGHSHQGHQWXSRQWKHSOD\DUHDQHHGVDQGFRQGLWLRQV,QVSHFWLRQVW\SLFDOO\DGGUHVVPDWHULDOZHDUGHWHULRUDWLRQORRVHILOOYDQGDOLVPDQGDQ\RWKHUSRWHQWLDOVRXUFHRIKD]DUGVWKDWFRXOGFDXVHLQMXU\ 'DLO\²,QVSHFWLRQFRQGXFWHGE\0DLQWHQDQFH:RUNHUWRLGHQWLI\DQGUHSRUW REYLRXVKD]DUGVGXHWRZHDWKHUGDPDJHYDQGDOLVPRURWKHUFKDUJHVWKDWSRVHDKD]DUGDQGULVNIRULQMXU\WKDWFRXOGRFFXUVLQFHWKHSUHYLRXVGD\ VXVH7KH'DLO\,QVSHFWLRQ&KHFNOLVWLVXVHGIRUWKLVLQVSHFWLRQ:HHNO\²,QVSHFWLRQFRQGXFWHGE\WKH0DLQWHQDQFH:RUNHUWRLQVSHFWWKHORRVHILOOSURWHFWLYHVDIHW\VXUIDFLQJDERXWSOD\VWUXFWXUHV7KHZHHNO\VDIHW\VXUIDFLQJLQVSHFWLRQFKHFNOLVWLVXVHGIRUWKLVLQVSHFWLRQ0RQWKO\²,QVSHFWLRQFRQGXFWHGE\WKH0DLQWHQDQFH:RUNHUVRQDOOSOD\HTXLSPHQWWRLGHQWLI\UHSRUWDQGRUFRUUHFWJURVVGDPDJHURWHURVLRQRIIRRWLQJVZRUQRUEURNHQKDUGZDUHVKDUSHGJHVSLQFKKD]DUGVSURWUXGLQJREMHFWVDQGHQWUDSPHQWDQGHQWDQJOHPHQWKD]DUGV7KHPRQWKO\HTXLSPHQWFKHFNOLVWLVXVHGIRUWKLVLQVSHFWLRQ
&OHDUDQFH=RQH²$FOHDUDQFH]RQHLVDUHTXLUHGXQREVWUXFWHG]RQHVXUURXQGLQJSOD\HTXLSPHQW&RPSRVLWH6WUXFWXUH²$FRPSRVLWHVWUXFWXUHFRQVLVWVRIWZRRUPRUHSOD\HYHQWV

HTXLSPHQW
WKDWDUHDWWDFKHGRUIXQFWLRQDOO\OLQNHGWRFUHDWHRQHLQWHJUDOXQLW&UXVK3RLQWV²6HH3LQFK&UXVKDQG6KHDU3RLQWV(QWDQJOHPHQW²(QWDQJOHPHQWRFFXUVZKHQDSHUVRQ VFORWKLQJRULWHPVZRUQDURXQGWKHSHUVRQ
VQHFNEHFRPHFDXJKWRUHQWZLQHGRQSOD\HTXLSPHQW7KLVFDQUHVXOWLQVWUDQJXODWLRQORVVRIDERG\SDUWRUHPRWLRQDOLQMXU\7RSUHYHQWIDVWHQHUVVKRXOGEHFORVHGDQGSURWUXVLRQVVKRXOGPHHW$670)UHTXLUHPHQWV(QWUDSPHQW²2FFXUVZKHQDFKLOG VKHDGRUOLPEEHFRPHORGJHGZLWKLQDVSDFHDQGFDQQRWEHZLWKGUDZQ(QWUDSPHQWFDQUHVXOWLQVWUDQJXODWLRQORVVRIILQJHUVDQGOLPEVDQGHPRWLRQDOLQMXU\2SHQLQJVWKDWDUHDFFHVVLEOHWRFKLOGUHQPXVWPHHWDOOHQWUDSPHQWFULWHULDVSHFLILHGLQ$670),ILQGRXEWFRQWDFWWKH3XEOLF:RUNV6XSHUYLVRU)DVWHQHUVDQG&RQQHFWLQJ'HYLFHV²)DVWHQHUVDQGFRQQHFWLQJGHYLFHVGLVFRXUDJHXQLQWHQWLRQDOORRVHQLQJDQGUHGXFHIULFWLRQEHWZHHQPRYLQJHOHPHQWVDQGIL[HGVXSSRUWV)DVWHQLQJGHYLFHVVXFKDVVKRRNVSHOLFDQKRRNVFKRRNVDQGFOHYLVGHYLFHVVKRXOGEHFORVHGWRSUHYHQWHQWDQJOHPHQW)DVWHQHUVDUHFRQVLGHUHGFORVHGZKHQWKHVSDFHEHWZHHQSRLQWVPHDVXUHVOHVVWKDQLQFKHV PLOOLPHWHUPP
:KHQDVKRRNLVFORVHGWKHORZHUORRSVKRXOGQRWH[WHQGEH\RQGWKHXSSHUORRSPRUHWKDQLQFK PP
&RQQHFWLQJGHYLVHVVKRXOGFRQVLVWRUFRUURVLRQ²UHVLVWDQWPDWHULDOVXFKDVVWDLQOHVVVWHHOEUDVVEUDVV]LQFSODWHGPHWDO]LQFFKURPDWHSODWHGPHWDORUJDOYDQL]HGVWHHO *XDUG5DLOV²$JXDUGUDLOLVDSDUWLDOO\HQFORVHGEDUULHUXVHGWRKHOSSUHYHQWFKLOGUHQIURPIDOOLQJRIIHOHYDWHGSODWIRUPV3DLQW²$OOSDLQWVDUHVLPLODUILQLVKHVPXVWFRPSO\ZLWK$670)UHTXLUHPHQWVWRPLQLPL]HOHDGH[SRVXUH PD[LPXPOHDGE\GU\ZHLJKW
3LQFK&UXVK 6KHDU3RLQWV²7KHVHMXQFWXUHVFDQFDXVHFRQWXVLRQ EUXLVH
ODFHUDWLRQVDEUDVLRQDPSXWDWLRQRUIUDFWXUHGXULQJXVH'HILQHGDVDQ\SRLQWWKDWHQWUDSVDLQFK PP
GLDPHWHUURGDWRQHRUPRUHSRVLWLRQVWKHVHDUHFUHDWHGZKHQFRPSRQHQWVPRYHLQUHODWLRQVKLSWRHDFKRWKHURUWRDIL[HGFRPSRQHQW&KDLQVDQGWKHDWWDFKPHQWDUHDRIKHDY\GXW\FRLOVSULQJVWRWKHEDVHRIURFNLQJHTXLSPHQWDUHH[HPSW3URWHFWLYH%DUULHUV²3URWHFWLYHEDUULHUVDUHHQFORVXUHVWKDWKHOSSUHYHQWFKLOGUHQIURP IDOOLQJRIIHOHYDWHGSODWIRUPV3URWUXVLRQV²3URWUXVLRQVDUHFRPSRQHQWVWKDWH[WHQGLQDQ\GLUHFWLRQIURPSOD\HTXLSPHQWVLWHHOHPHQWVRUVLWHIXUQLVKLQJV3URWUXVLRQVFDQFDWFKDFKLOG VFORWKLQJ

FDXVLQJVWUDQJXODWLRQRUORVVRIEDODQFH3URWUXVLRQVDOVRSRVHDSRWHQWLDOLPSDFWKD]DUG3URWUXVLRQVPXVWPHHW$670)UHTXLUHPHQWV6DIHW\6XUIDFLQJ²6DIHW\VXUIDFLQJFRQVLVWVRIVKRFNDEVRUEHQWPDWHULDOVWKDWPXVWEHXVHGWKURXJKRXWSOD\HTXLSPHQWXVH]RQHV6DIHW\VXUIDFHVLQFOXGHV\QWKHWLFPDWHULDOV

HJSRXUHGLQSODFHVXUIDFLQJWLOHVHWF
DQGORRVHILOOPDWHULDOVVXFKDVZRRGSURGXFWVVDQGJUDYHOFKRSSHGWLUHVHWF6DIHW\VXUIDFLQJVKRXOGPHHWWKHLPSDFWUHVLVWDQWUHTXLUHPHQWVRI&36&ZKHQWHVWHGLQDFFRUGDQFHZLWK$670) 6KDUS3RLQWV&RUQHUV (GJHV²6KDUSHGJHVPD\FXWRUSXQFWXUHDSHUVRQ VVNLQDQGVKRXOGEHDYRLGHGLQSOD\DUHDVDVSUHVFULEHGE\$670)([SRVHGRSHQHQGVRIWXELQJVKRXOGEHFRYHUHGZLWKFDSVRUSOXJVWKDWFDQQRWEHUHPRYHGZLWKRXWWRROV%ROWHQGVVKRXOGQRWH[WHQGPRUHWKDQWZRWKUHDGVEH\RQGWKHIDFHRIWKHQXWDQGVKRXOGEHIUHHRIEXUUVDQGVKDUSHGJHV7KHFRUQHUVDQGHGJHVRIVXVSHQGHGSDUWVVKRXOGKDYHDPLQLPXPFXUYDWXUHUDGLXVRILQFK PP
)OH[LEOHFRPSRQHQWVVXFKDVEHOWVVWUDSVDQGURSHVDUHH[HPSW6KHDU3RLQWV6HH3LQFK&UXVK 6KHDU3RLQWV6OLGH+HLJKW/HQJWKUDWLR²7KHKHLJKWRIWKHVOLGHEHGGLYLGHGE\LW VOHQJWKVKRXOGQRWH[FHHG6WUXFWXUDOLQWHJULW\²$670KDGGHYHORSHGWHVWSURFHGXUHVWKDWPHDVXUHWKHORDGEHDULQJFDSDFLW\RIPDQXIDFWXUHGSOD\HTXLSPHQW VHH$670)6XVSHQGHG+D]DUGV²+D]DUGVFDQEHFUHDWHGE\FKDLQVFDEOHVRUURSHVVXVSHQGHG EHWZHHQSOD\HTXLSPHQWRUIURPSOD\HTXLSPHQWWRWKHJURXQG)OH[LEOHHOHPHQWVVKRXOGQRWEHVXVSHQGHGZLWKLQGHJUHHVRIKRUL]RQWDOVXUIDFHVDWDKHLJKWDWOHVVWKDQLQFKHV PP
DERYHWKHSOD\JURXQGVXUIDFH7KH\VKRXOGEHIL[HGDWERWKHQGVDQGVKRXOGQRWEHFDSDEOHRIEHLQJORRSHG VWUDQJXODWLRQKD]DUG
EDFNRQLWVHOI7ZRRUPRUHVXVSHQGHGFDEOHVRUZLUHVWKDWDUHORFDWHGDWWZRRUPRUHKHLJKWVPD\EHVXVSHQGHGEHORZLQFKHV PP
LIWKH\PHHWDOORIWKHDERYHUHTXLUHPHQWVDQGFDQQRWEHORRSHGRUVWUHWFKHGWRFRQWUDVWZLWKWKHVXUURXQGLQJHTXLSPHQWWRLQFUHDVHYLVLELOLW\7UDQVIHU3RLQW²$SODWIRUPDORQJDQDFFHVVLEOHURXWHRIWUDYHOWKDWDOORZVDZKHHOFKDLUXVHUWRWUDQVIHUIURPWKHZKHHOFKDLURQWRSOD\HTXLSPHQW$WUDQVIHUSRLQWDQGDGMDFHQWSODWIRUPVRUVWHSVWKDWDOORZDFKLOGWRPRYHWKURXJKWKHHTXLSPHQWLVFDOOHGWKHWUDQVIHUV\VWHP8VH=RQH²$XVH]RQHLVDQREVWDFOHIUHHDUHDDQGDURXQGSOD\HTXLSPHQWZKHUHDFKLOGFRXOGODQGZKHQIDOOLQJIURPMXPSLQJIURPRUH[LWLQJIURPWKHHTXLSPHQW7KHHQWLUHXVH]RQHPXVWEHFRYHUHGZLWKVDIHW\VXUIDFLQJ:RRG3UHVHUYDWLYHV²:RRGXVHGLQSOD\JURXQGHTXLSPHQWVKRXOGEHQDWXUDOO\URWDQG LQVHFWUHVLVWDQWRUWUHDWHGZLWKZRRGSUHVHUYDWLYHVWKDWPHHWV$670)
' 5(63216,%,/,7<7KH&LW\RI:DWHUIRUGLVUHVSRQVLEOHIRULQWHUSUHWDWLRQRIUHFRJQL]HGVWDQGDUGVUHODWHGWRSOD\JURXQGVDQGSOD\HTXLSPHQW3URYLGHFRQVXOWDWLRQVHUYLFHVWR6XSHUYLVRUV0DLQWHQDQFHSHUVRQQHO&RQGXFWSHULRGLFVDIHW\DXGLWV&RQGXFWLQVHUYLFHWUDLQLQJIRU0DLQWHQDQFHZRUNHUVDVQHHGHG 3:6XSHUYLVRU5HVSRQVLEOHIRUHQVXULQJWKHVLWHSOD\JURXQGVDQGSOD\HTXLSPHQWDUHIUHHRINQRZQKD]DUGV5HVSRQVLEOHIRUPDLQWDLQLQJDOOSOD\JURXQGPDLQWHQDQFHUHFRUGV GRFXPHQWDWLRQUHODWLQJWRLQVSHFWLRQV 'DLO\:HHNO\0RQWKO\

5HVSRQVLEOHIRUSURPSWUHVSRQVHLQUHSDLULQJSOD\JURXQGDQGSOD\HTXLSPHQWFRQFHUQVDVLGHQWLILHGE\FLWL]HQV3:6XSHUYLVRURU0DLQWHQDQFH3HUVRQQHO 0DLQWHQDQFH:RUNHUV5HVSRQVLEOHIRUFRQGXFWLQJVLWHSOD\JURXQGDQGSOD\HTXLSPHQWVDIHW\LQVSHFWLRQVDVLQGLFDWHGLQWKLVUHJXODWLRQDQGSURFHGXUHRURWKHUZLVHGLUHFWHG5HVSRQVLEOHIRUFRPSOHWLQJWKH3OD\JURXQG0DLQWHQDQFH5HFRUGDVLQGLFDWHGLQWKLVUHJXODWLRQDQGSURFHGXUH5HVSRQVLEOHIRUUHSRUWLQJSOD\JURXQGDQGSOD\HTXLSPHQWKD]DUGVWRWKH3XEOLF:RUNVVXSHUYLVRU7KHDWWDFKHG'DLO\,QVSHFWLRQ&KHFNOLVWLVSURYLGHGWRLGHQWLI\DQGUHSRUWKD]DUGV7KH0DLQWHQDQFH:RUNHUVVKDOOEHJLYHQDXWKRULW\E\WKH3XEOLF:RUNV6XSHUYLVRUWRVHFXUHWKHSOD\JURXQGDUHDDQGRUHTXLSPHQWDVQHHGHGXQWLOWKHKD]DUGLVIXUWKHUHYDOXDWHGDQGRUFRUUHFWHG 3:'LUHFWRU5HVSRQVLEOHIRUHQVXULQJWKHDVVLJQHG0DLQWHQDQFH:RUNHUVDUHWUDLQHGWRHIIHFWLYHO\FRQGXFWWKHGDLO\ZHHNO\DQGPRQWKO\LQVSHFWLRQVFRQWDLQHGLQWKLVGRFXPHQW5HVSRQVLEOHIRUSURPSWUHVSRQVHLQUHSDLULQJSOD\JURXQGDQGSOD\HTXLSPHQWFRQFHUQVDVLGHQWLILHGE\FLWL]HQV3:6XSHUYLVRURU0DLQWHQDQFH3HUVRQQHO
( 75$,1,1*
0DLQWHQDQFH:RUNHUV,QLWLDODQGDQQXDOUHIUHVKHUWUDLQLQJLVUHTXLUHGIRU0DLQWHQDQFH:RUNHUV7UDLQLQJ ZLOOLQFOXGHUHFRJQL]LQJFRUUHFWLQJDQGRUUHSRUWLQJSOD\JURXQGHTXLSPHQWKD]DUGVDVLWDSSOLHVWRWKHZHHNO\DQGWKHPRQWKO\LQVSHFWLRQV$WDPLQLPXPWUDLQLQJZLOOLQFOXGHDGHWDLOHGUHYLHZRIWKLVUHJXODWLRQDQGSURFHGXUH7KH3XEOLF:RUNVVXSHUYLVRUZLOOVFKHGXOHDQGFRRUGLQDWHWUDLQLQJIRU0DLQWHQDQFH:RUNHUV ) ,163(&7,216
0DLQWHQDQFH:RUNHUV&RQGXFWDRQFHGDLO\LQVSHFWLRQXVLQJWKH'DLO\,QVSHFWLRQ&KHFNOLVWDVDPSOHLVDWWDFKHG8VHWKHFKHFNOLVWWRUHFRJQL]HHYDOXDWHDQGUHSRUWSRWHQWLDOKD]DUGRXVFRQGLWLRQV&RQGXFWDZHHNO\LQVSHFWLRQRIWKHSURWHFWLYHVDIHW\VXUIDFLQJ LHZRRGFKLSV8VH
WKH:HHNO\6DIHW\6XUIDFLQJ,QVSHFWLRQ&KHFNOLVWZKHQFRQGXFWLQJWKLVWKRURXJKLQVSHFWLRQ&RQGXFWDPRQWKO\SOD\HTXLSPHQWLQVSHFWLRQ8VHWKH0RQWKO\3OD\(TXLSPHQW,QVSHFWLRQ&KHFNOLVWZKHQFRQGXFWLQJWKLVWKRURXJKLQVSHFWLRQ * )2506$OOIRUPVDUHVWRFNHGDQGDYDLODEOHDWWKHSXEOLFZRUNVRIILFHV x 'DLO\LQVSHFWLRQFKHFNOLVW
x :HHNO\6DIHW\6XUIDFLQJ,QVSHFWLRQ&KHFNOLVWx 0RQWKO\3OD\(TXLSPHQW,QVSHFWLRQ&KHFNOLVWx 3OD\JURXQG0DLQWHQDQFH5HFRUG + 5()(5(1&(67KHIROORZLQJUHIHUHQFHVDUHDYDLODEOHLQWKHRIILFHRI3XEOLF:RUNV
x +DQGERRNIRU3XEOLF3OD\JURXQG6DIHW\3XEOLFDWLRQ1XPEHU86&36& :DVKLQJWRQ'&

x 6WDQGDUG&RQVXPHU6DIHW\3HUIRUPDQFH6SHFLILFDWLRQIRU3OD\JURXQG(TXLSPHQW IRU3XEOLF8VH$670)²
$PHULFDQ6RFLHW\IRU7HVWLQJDQG0DWHULDOV
$670

$33(1',;$
'$,/<,163(&7,21&+(&./,67

$33(1',;%
:((./<6$)(7<685)$&,1*,163(&7,21&+(&./,67

$33(1',;&
0217+/<3/$<(48,30(17,163(&7,21&+(&./,67

$33(1',;'
3/$<*5281'0$,17(1$1&(5(&25'
6LWH
%HDUG3DUN3OD\JURXQG
,WHP ,QWKHVSDFHSURYLGHGGHVFULEHWKHUHSDLUZRUNGRQHDQGRQZKDW HTXLSPHQWDQGORFDWLRQRQWKHSOD\JURXQG &RPSOHWHG%\ 'DWH
$33(1',;(
0,5$&/(6$)(7<%52&+85(

:((./<,163(&7,21&+(&./,67
&LW\RI:DWHUIRUG(6WUHHW:DWHUIRUG&$
ZZZFLW\RIZDWHUIRUGRUJ
,16758&7,216
6LWH
%HDUG3DUN3OD\JURXQG,QVSHFWRUV1DPH
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 'DWH
BBBBBBBBBBBBBB7LPH
BBBBBBBBBBBBBBBB0DLQWHQDQFH:RUNHUVILOORXWWRLGHQWLI\DQGUHSRUWSRWHQWLDOKD]DUGVRQWKHSOD\JURXQG85*(17$&7,21 ,IDVHULRXVXQVDIHFRQGLWLRQLVSHUFHLYHGWKHLQVSHFWRUVKRXOGVHFXUHWKHDUHDDQGRUSOD\HTXLSPHQWDQGLPPHGLDWHO\QRWLI\WKH3XEOLF:RUNV6XSHUYLVRUIRUDSSURSULDWHFRUUHFWLYHDFWLRQ 6(&7,21 Checklist
NIR = Needs Immediate Repair NR = Needs Repair <(6 1,5,67+(6$)(7<685)$&,1*0$7(5,$/)5((2)'(%5,6$1')25(,*12%-(&7668&+$6*/$667:,*6/($9(6(7&",67+(6$)(7<685)$&,1*)5((2)$1,0$/)(&(6",67+(6$)(7<685)$&,1*)5((2)02/'0,/'(:527,16(&7$1'52'(17,1)(67$7,21",67+(6$)(7<685)$&,1*&217$,1(',17+(3/$<$5($",6,75(029(')520$'-$&(17$5($6$1'3$7+:$<6725('8&(6/,375,3$1')$//+$=$5'6",67+(6$)(7<685)$&,1*)5((2)+2/(625/2:$5($6&$86('%<',**,1*253/$<$&7,9,7,(6",67+(6$)(7<685)$&,1*)5((2)67$1',1*:$7(5",6*2'''5$,1$*(0$,17$,1('",67+(6$)(7<685)$&,1*$7/($67´'((37+528*+2877+(86(=21(" /226(72$7/($67
´'(37+"
'2(67+(0$7(5,$/0((77+(67$1'$5'63(&,),&$7,216)25³0$18)$&785(':22'&+,36",67+(685)$&,1*3527(&7,1*86(56)520+$5'685)$&(6$1')227,1*6%(/2:6758&785(66/,'(6 6:,1*6",67+(3/$<$5($)5((2)75,3+$=$5'668&+$65227652&.6$1')$%5,&"+$9($//³'$,/<,163(&7,216&+(&./,67´5(32576%((1&255(&7('255(3257('727+,6'$7("$5($//3/$<*5281'7,0%(5%25'(56,13/$&(:,7+120,66,1*67$.(6)5((2)&5$&.6$1'9$1'$/,60" *(1(5$/&21',7,21$33($5$1&( *22' )$,5 3225 &200(176
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 15
127(6
,QVSHFWWKHVDIHW\VXUIDFLQJWKHILUVWGD\RIHDFKZHHN 0DLQWHQDQFHSHUVRQQHODUHUHVSRQVLEOHIRUXQLIRUPO\VSUHDGLQJWKHVDIHW\VXUIDFLQJDQGIRUORRVHQLQJWKHZRRGFKLS 2UGHUQHZRUDGGLWLRQDOVDIHW\VXUIDFLQJYLDWKH3XEOLF:RUNV6XSHUYLVRU 1HZPDWHULDOVKRXOGQRWEHLQVWDOOHGRYHUFRPSDFWHGPDWHULDO/RRVHQWKHFRPSDFWHGEHIRUHDGGLQJQHZPDWHULDO ,I\RXKDYHDQ\TXHVWLRQVRUFRPPHQWVDERXWWKLVFKHFNOLVWGLVFXVVWKHLWHP V
ZLWK\RXU6XSHUYLVRU
&,7<2):$7(5)25'
%/22'%251(3$7+2*(16
32/,&<
&LW\RI:DWHUIRUG
(6WUHHW32%R[

:DWHUIRUG&$

)D[

&LW\RI:DWHUIRUG
%ORRGERUQH3DWKRJHQV3ROLF\
7DEOHRI&RQWHQWV
$ 3XUSRVH«««««««««««««««««««««««« % $XWKRULW\««««««««««««««««««««««« ([SRVXUH GHWHUPLQDWLRQ«««««««««««««««
& 0HWKRGVRI&RPSOLDQFH««««««««««««««««««
8QLYHUVDO3UHFDXWLRQV«««««««««««««««« (QJLQHHULQJDQG:RUN3UDFWLFH&RQWUROV«««««««« 3HUVRQDO3URWHFWLYH(TXLSPHQW«««««««««««« +RXVHNHHSLQJ«««««««««««««««««««

' +HSDWLWLV%9DFFLQDWLRQDQG3RVWH[SRVXUH(YDOXDWLRQDQG )ROORZXS«««««««««««««««««««««««
*HQHUDO«««««««««««««««««««««« +HSDWLWLV««««««««««««««««««««« 3RVWH[SRVXUH(YDOXDWLRQDQG)ROORZXS«««««««« ,QIRUPDWLRQ3URYLGHGWRWKH+HDOWKFDUH3URIHVVLRQDO««« +HDOWKFDUH3URIHVVLRQDO¶V:ULWWHQ2SLQLRQ««««««« ( &RPPXQLFDWLRQVRI+D]DUGVWR(PSOR\HHV««««««««««
/DEHOV«««««««««««««««««««««« ,QIRUPDWLRQDQG7UDLQLQJ«««««««««««««« ) 5HFRUGNHHSLQJ«««««««««««««««««««««
0HGLFDO5HFRUGV«««««««««««««««««« 7UDLQLQJ5HFRUGV«««««««««««««««««« $YDLODELOLW\«««««««««««««««««««« * $SSHQGL[$± +HSDWLWLV% 9DFFLQH'HFOLQDWLRQ«««««««« + $SSHQGL[%± &RQVHQWIRU+HSDWLWLV%9DFFLQH,PPXQL]DWLRQ 3URJUDP««««««««««««««««««««««««
, $SSHQGL[&± +HSDWLWLV%9DFFLQDWLRQ5HFRUG««««««««
- $SSHQGL['±'RFXPHQWDWLRQRI6WDII(GXFDWLRQRQ3UHYHQWLRQRI ([SRVXUHWR%ORRGERUQH3DWKRJHQV«««««««««««««
. $SSHQGL[(±([SRVXUH5HSRUWWR%ORRGERUQH3DWKRJHQV««« / $SSHQGL[)±&$/26+$)DFW6KHHW
6DIHW\1HHGOHV
1HHGOHOHVV6\VWHPV««««««««««««««««««««

%/22'%251(3$7+2*(1632/,&<
$ 385326(7RHVWDEOLVKH[SRVXUHGHWHUPLQDWLRQWRLGHQWLI\MREFODVVLILFDWLRQVLQZKLFKHPSOR\HHVPD\KDYHRFFXSDWLRQDOH[SRVXUHWREORRGRURWKHUSRWHQWLDOO\LQIHFWLRXVPDWHULDOVUHVXOWLQJIURPWKHSHUIRUPDQFHRIWKHLUGXWLHV7RHVWDEOLVKDVFKHGXOHDQGPHWKRGRILPSOHPHQWDWLRQRIWKH([SRVXUH&RQWURO3ODQDQGSURFHGXUHVIRUWKHHYDOXDWLRQRIFLUFXPVWDQFHVVXUURXQGLQJH[SRVXUHLQFLGHQWV% $87+25,7<7LWOH &RGHRI)HGHUDO5HJXODWLRQV6HFWLRQ
DQG6HFWLRQ
RI7LWOHRIWKH&DOLIRUQLD&RGHRI5HJXODWLRQV
([SRVXUHGHWHUPLQDWLRQ7KH&LW\RI:DWHUIRUGKDVLGHQWLILHGFDWHJRULHVRIHPSOR\HHVZKRKDYHRFFXSDWLRQDOH[SRVXUHWREORRGERUQHSDWKRJHQV&DWHJRU\,FODVVLILFDWLRQVDUHWKRVHFODVVLILFDWLRQVLQZKLFKHPSOR\HHVDVDUHVXOWRIWKHLUHPSOR\PHQWPD\KDYHGD\WRGD\H[SRVXUHZLWKEORRGRURWKHUSRWHQWLDOO\LQIHFWLRXVPDWHULDOV&DWHJRU\,,FODVVLILFDWLRQVDUHWKRVHFODVVLILFDWLRQVLQZKLFKHPSOR\HHVDVDUHVXOWRIWKHLUHPSOR\PHQWKDYHWKHSRVVLELOLW\RIFRPLQJLQWRFRQWDFWZLWKEORRGRURWKHUSRWHQWLDOO\LQIHFWLRXVPDWHULDOV &DWHJRU\, &DWHJRU\,,
$OO&RUUHFWLRQDO2IILFHUV 3XEOLF:RUNV)RUHPDQ)LUHILJKWHU (TXLSPHQW2SHUDWRUV)LUH(QJLQHHU 0DLQWHQDQFH:RUNHUV)LUH&DSWDLQ 3URSHUW\&OHUN 3ROLFH'HSW
)LUH0DUVKDO 0DLQWHQDQFH6XSHUYLVRU)LUH&KLHI 3URJUDP,QVWUXFWRU3ROLFH'LVSDWFKHUV 3URJUDP0DQDJHU3ROLFH2IILFHU 7UDQVLW2SHUDWRUV3ROLFH6HUJHDQW3ROLFH/LHXWHQDQW3ROLFH&DSWDLQ3ROLFH&KLHI(TXLSPHQW2SHUDWRU 5HIXVH9HKLFOHV
:DVWHZDWHU7UHDWPHQW3ODQW3HUVRQQHO

& 0(7+2'62)&203/,$1&(
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

(QJLQHHULQJDQG:RUN3UDFWLFH&RQWUROV(QJLQHHULQJDQG:RUN3UDFWLFH&RQWUROVDUHFRQWUROVWKDWLVRODWHRUUHPRYHWKHEORRGERUQHSDWKRJHQVKD]DUGIURPWKHZRUNSODFHRUUHGXFHWKHOLNHOLKRRGRIH[SRVXUHE\DOWHULQJWKHPDQQHULQZKLFKDWDVNLVSHUIRUPHG D (QJLQHHULQJDQGZRUNSUDFWLFHFRQWUROVVKDOOEHXVHGWRHOLPLQDWHRU PLQLPL]HHPSOR\HHH[SRVXUH:KHUHRFFXSDWLRQDOH[SRVXUHUHPDLQVDIWHU LQVWLWXWLRQRIWKHVHFRQWUROVSHUVRQDOSURWHFWLYHHTXLSPHQWVKDOODOVREH XVHG
E (QJLQHHULQJFRQWUROVVKDOOEHH[DPLQHGDQGPDLQWDLQHGRUUHSODFHGRQD UHJXODUVFKHGXOHWRHQVXUHWKHLUHIIHFWLYHQHVV
F 7KH&LW\RI:DWHUIRUGVKDOOSURYLGHKDQGZDVKLQJIDFLOLWLHVZKLFKDUH UHDGLO\DFFHVVLEOHWRHPSOR\HHV
G :KHQSURYLVLRQRIKDQGZDVKLQJIDFLOLWLHVLVQRWIHDVLEOHWKHHPSOR\HU VKDOOSURYLGHHLWKHUDQDSSURSULDWHDQWLVHSWLFKDQGFOHDQHULQFRQMXQFWLRQZLWKFOHDQFORWKSDSHUWRZHOVRUDQWLVHSWLFWRZHOHWWHVZKHQDQWLVSHWLFKDQGFOHDQHUVRUWRZHOHWWVDUHXVHGKDQGVVKDOOEHZDVKHGZLWKVRDSDQGUXQQLQJZDWHUDVVRRQDVIHDVLEOH
H (PSOR\HHVVKDOOZDVKWKHLUKDQGVLPPHGLDWHO\RUDVVRRQDVIHDVLEOHDIWHU UHPRYDORIJORYHVRURWKHUSHUVRQDOSURWHFWLYHHTXLSPHQW I (PSOR\HHVVKDOOZDVKKDQGVDQGDQ\RWKHUVNLQZLWKVRDSDQGZDWHURU IOXVKPXFRXVPHPEUDQHVZLWKZDWHULPPHGLDWHO\RUDVVRRQDVIHDVLEOHIROORZLQJFRQWDFWRIVXFKERG\DUHDVZLWKEORRGRURWKHUSRWHQWLDOO\LQIHFWLRXVPDWHULDOV J &RQWDPLQDWHGQHHGOHVDQGRWKHUFRQWDPLQDWHGVKDUSVVKDOOQRWEHEHQW UHFDSSHGRUUHPRYHGXQOHVVQRDOWHUQDWLYHLVIHDVLEOHDQGWKHQVXFKUHFDSSLQJRUQHHGOHUHPRYDOPXVWEHDFFRPSOLVKHGWKURXJKWKHXVHRIDPHFKDQLFDOGHYLFHRUDRQHKDQGHGWHFKQLTXH K ,PPHGLDWHO\RUDVVRRQDVSRVVLEOHDIWHUXVHFRQWDPLQDWHGUHXVDEOHVKDUSV VKDOOEHSODFHGLQDSSURSULDWHFRQWDLQHUVXQWLOSURSHUO\UHSURFHVVHG&RQWDLQHUVVKDOOEHSXQFWXUHUHVLVWDQWODEHOHGLQDFFRUGDQFHZLWKWKLVSODQDQGOHDNSURRIRQWKHVLGHVDQGERWWRP L (DWLQJGULQNLQJVPRNLQJDSSO\LQJFRVPHWLFVRUOLSEDOPDQGKDQGOLQJ FRQWDFWOHQVHVDUHSURKLELWHGLQZRUNDUHDVZKHUHWKHUHLVDUHDVRQDEOHOLNHOLKRRGRIRFFXSDWLRQDOH[SRVXUH M )RRGDQGGULQNVKDOOQRWEHNHSWLQUHIULJHUDWRUVIUHH]HUVVKHOYHV FDELQHWVRURQFRXQWHUWRSVRUEHQFKWRSVZKHUHEORRGRURWKHUSRWHQWLDOO\LQIHFWLRXVPDWHULDOVDUHSUHVHQW N $OOSURFHGXUHVLQYROYLQJEORRGRURWKHUSRWHQWLDOO\LQIHFWLRXVPDWHULDOV VKDOOEHSHUIRUPHGLQVXFKDPDQQHUDVWRPLQLPL]HVSODVKLQJVSUD\LQJVSDWWHULQJDQGJHQHUDWLRQRIGURSOHWVRIWKHVHVXEVWDQFHV O 0RXWKSLSHWWLQJVXFWLRQLQJRIEORRGRURWKHUSRWHQWLDOO\LQIHFWLRXV PDWHULDOVLVSURKLELWHG
P 6SHFLPHQVRIEORRGRURWKHUSRWHQWLDOO\LQIHFWLRXVPDWHULDOVVKDOOEH SODFHGLQDFRQWDLQHUZKLFKSUHYHQWVOHDNDJHGXULQJFROOHFWLRQKDQGOLQJSURFHVVLQJVWRUDJHWUDQVSRUWRUVKLSSLQJ 7KHFRQWDLQHUIRUVWRUDJHWUDQVSRUWRUVKLSSLQJVKDOOEHODEHOHG DQGFRORUFRGHGDFFRUGLQJWRWKLVSODQDQGFORVHGSULRUWREHLQJVWRUHGWUDQVSRUWHGRUVKLSSHG ,IRXWVLGHFRQWDPLQDWLRQRIWKHSULPDU\FRQWDLQHURFFXUVWKH SULPDU\FRQWDLQHUVKDOOEHZLWKLQDVHFRQGFRQWDLQHUZKLFKSUHYHQWVOHDNDJHGXULQJFROOHFWLRQKDQGOLQJSURFHVVLQJVWRUDJH
WUDQVSRUWRUVKLSSLQJDQGLVODEHOHGDQGFRORUFRGHGDFFRUGLQJWR WKHUHTXLUHPHQWVRIWKLVSODQ
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
H 7KH&LW\RI:DWHUIRUGVKDOOUHSDLURUUHSODFHSHUVRQDOSURWHFWLYH HTXLSPHQWDVQHHGHGWRPDLQWDLQLWVHIIHFWLYHQHVVDWQRFRVWWRWKHHPSOR\HH
I ,IDJDUPHQWLVSHQHWUDWHGE\EORRGRURWKHUSRWHQWLDOO\LQIHFWLRXV PDWHULDOVWKHJDUPHQWVKDOOEHUHPRYHGLPPHGLDWHO\RUDVVRRQDVIHDVLEOH J $OOSHUVRQDOSURWHFWLYHHTXLSPHQWVKDOOEHUHPRYHGSULRUWROHDYLQJWKH ZRUNDUHD
K :KHQSHUVRQDOSURWHFWLYHHTXLSPHQWLVUHPRYHGLWVKDOOEHSODFHGLQDQ DSSURSULDWHO\GHVLJQDWHGDUHDRUFRQWDLQHUIRUVWRUDJHZDVKLQJGHFRQWDPLQDWLRQRUGLVSRVDO L *ORYHVVKDOOEHZRUQZKHQLWFDQEHUHDVRQDEO\DQWLFLSDWHGWKDWWKH HPSOR\HHPD\KDYHKDQGFRQWDFWZLWKEORRGRWKHUSRWHQWLDOO\LQIHFWLRXVPDWHULDOVPXFRXVPHPEUDQHVDQGQRQLQWDFWVNLQ ZKHQSHUIRUPLQJYDVFXODUDFFHVVSURFHGXUHVDQGZKHQKDQGOLQJRUWRXFKLQJFRQWDPLQDWHGLWHPVRUVXUIDFHV 'LVSRVDEOH
VLQJOHXVH
JORYHVVXFKDVVXUJLFDORUH[DPLQDWLRQ
JORYHVVKDOOEHUHSODFHGDVVRRQDVSUDFWLFDOZKHQFRQWDPLQDWHGRUDVVRRQDVIHDVLEOHLIWKH\DUHWRUQSXQFWXUHGRUZKHQWKHLUDELOLW\WRIXQFWLRQDVDEDUULHULVFRPSURPLVHG 'LVSRVDEOH
VLQJOHXVH
JORYHVVKDOOQRWEHZDVKHGRU
GHFRQWDPLQDWHGIRUUHXVH
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

+RXVHNHHSLQJ
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
PD\KDYHEHFRPHFRQWDPLQDWHGVLQFHWKHODVWFOHDQLQJ
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
FRQWDPLQDWHGLWHPVWKDWZRXOGUHOHDVH
EORRGRURWKHUSRWHQWLDOO\LQIHFWLRXVPDWHULDOVLQDOLTXLGRUVHPLOLTXLGVWDWHLIFRPSUHVVHG LWHPVWKDWDUHFDNHGZLWKGULHGEORRGRURWKHUSRWHQWLDOO\LQIHFWLRXVPDWHULDOVDQGDUHFDSDEOHRIUHOHDVLQJWKHVH
PDWHULDOVGXULQJKDQGOLQJ
FRQWDPLQDWHGVKDUSV
DQGSDWKRORJLFDODQGPLFURELRORJLFDOZDVWHVFRQWDLQLQJEORRGRURWKHUSRWHQWLDOLQIHFWLRXVPDWHULDOV &RQWDPLQDWHG6KDUSV'LVFDUGLQJDQG&RQWDLQPHQW
D &RQWDPLQDWHGVKDUSVVKDOOEHGLVFDUGHGLPPHGLDWHO\RUDV VRRQDVIHDVLEOHLQFRQWDLQHUVWKDWDUHFORVDEOHSXQFWXUHUHVLVWDQWOHDNSURRIRQVLGHVDQGERWWRPDQGODEHOHGDQGFRORUFRGHGLQDFFRUGDQFHZLWKWKLVSODQ E 'XULQJXVHFRQWDLQHUVIRUFRQWDPLQDWHGVKDUSVVKDOOEH HDVLO\DFFHVVLEOHWRSHUVRQQHODQGORFDWHGDVFORVHDVLVIHDVLEOHWRWKHLPPHGLDWHDUHDZKHUHVKDUSVDUHXVHGRUFDQEHUHDVRQDEO\DQWLFLSDWHGWREHIRXQG PDLQWDLQHGXSULJKWWKURXJKRXWXVH
DQGUHSODFHGURXWLQHO\DQGQRWEHDOORZHGWRRYHUILOO F :KHQPRYLQJFRQWDLQHUVRIFRQWDPLQDWHGVKDUSVIURPWKH DUHDRIXVHWKHFRQWDLQHUVVKDOOEH

&ORVHGLPPHGLDWHO\SULRUWRUHPRYDORUUHSODFHPHQW
WRSUHYHQWVSLOODJHRUSURWUXVLRQRIFRQWHQWVGXULQJKDQGOLQJVWRUDJHWUDQVSRUWRUVKLSSLQJ
,IOHDNDJHLVSRVVLEOHSODFHGLQDVHFRQGDU\
FRQWDLQHUWKDWLVFORVDEOHFRQVWUXFWHGWRFRQWDLQDOOFRQWHQWVDQGSUHYHQWOHDNDJHGXULQJKDQGOLQJVWRUDJHWUDQVSRUWRUVKLSSLQJDQGODEHOHGDQGFRORUFRGHGDFFRUGLQJWRWKLVSODQ G 5HXVDEOHFRQWDLQHUVKDOOQRWEHRSHQHGHPSWLHGRUFOHDQHG PDQXDOO\RULQDQ\RWKHUPDQQHUZKLFKZRXOGH[SRVHHPSOR\HHVWRWKHULVNRISHUFXWDQHRXVLQMXU\ 2WKHU5HJXODWHG:DVWH&RQWDLQPHQW
D 5HJXODWHGZDVWHVKDOOEHSODFHGLQFRQWDLQHUVZKLFKDUH
&ORVDEOHDQGFRQVWUXFWHGWRFRQWDLQDOOFRQWHQWVDQG SUHYHQWOHDNDJHRIIOXLGVGXULQJKDQGOLQJVWRUDJHWUDQVSRUWRUVKLSSLQJ /DEHOHGDQGFRORUFRGHGLQDFFRUGDQFHZLWKWKLV
SODQ
DQG

&ORVHGSULRUWRUHPRYDOWRSUHYHQWVSLOODJHRU
SURWUXVLRQRIFRQWHQWVGXULQJKDQGOLQJVWRUDJHWUDQVSRUWRUVKLSSLQJ E ,IRXWVLGHFRQWDPLQDWLRQRIWKHUHJXODWHGZDVWHFRQWDLQHU RFFXUVLWVKDOOEHSODFHGLQDVHFRQGFRQWDLQHU7KHVHFRQGFRQWDLQHUVKDOOEH
&ORVDEOHDQGFRQVWUXFWHGWRFRQWDLQDOOFRQWHQWVDQG SUHYHQWOHDNDJHRIIOXLGVGXULQJKDQGOLQJVWRUDJHWUDQVSRUWRUVKLSSLQJ /DEHOHGDQGFRORUFRGHGLQDFFRUGDQFHZLWKWKLV
SODQ
DQG
&ORVHGSULRUWRUHPRYDOWRSUHYHQWVSLOODJHRU
SURWUXVLRQRIFRQWHQWVGXULQJKDQGOLQJVWRUDJHWUDQVSRUWRUVKLSSLQJ +DQGOLQJVWRUDJHWUHDWPHQWDQGGLVSRVDORIDOOUHJXODWHGZDVWH VKDOOEHLQDFFRUGDQFHZLWK+HDOWKDQG6DIHW\&RGH&KDSWHUDQGRWKHUDSSOLFDEOHUHJXODWLRQVRIWKH8QLWHG6WDWHVWKH6WDWHDQGSROLWLFDOVXEGLYLVLRQVRIWKH6WDWH ' /DXQGU\
&RQWDPLQDWHGODXQGU\VKDOOEHKDQGOHGDVOLWWOHDVSRVVLEOHZLWKD PLQLPXPRIDJLWDWLRQ
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
(PSOR\HHVZKRKDYHFRQWDFWZLWKFRQWDPLQDWHGODXQGU\VKDOOZHDU SURWHFWLYHJORYHVDQGRWKHUDSSURSULDWHSHUVRQDOSURWHFWLYHHTXLSPHQW :KHQDIDFLOLW\VKLSVFRQWDPLQDWHGODXQGU\RIIVLWHWRDVHFRQG IDFLOLW\ZKLFKGRHVQRWXWLOL]H8QLYHUVDO3UHFDXWLRQVLQWKHKDQGOLQJRIDOOODXQGU\WKHIDFLOLW\JHQHUDWLQJWKHFRQWDPLQDWHGODXQGU\PXVWSODFHVXFKODXQGU\LQEDJVRUFRQWDLQHUVZKLFKDUHODEHOHGDQGFRORUFRGHGLQDFFRUGDQFHZLWKWKHSODQ ( +(3$7,7,6%9$&&,1$7,21$1'3267(;32685(
(9$/8$7,21$1')2//2:83
*HQHUDO
$7KH&LW\RI:DWHUIRUGVKDOOPDNHDYDLODEOHWKHKHSDWLWLV%YDFFLQHDQG YDFFLQDWLRQVHULHVWRDOOHPSOR\HHVZKRKDYHRFFXSDWLRQDOH[SRVXUH UHIHUWR&DWHJRU\,DQG&DWHJRU\,,FODVVLILFDWLRQV
SRVWH[SRVXUHHYDOXDWLRQDQGIROORZXSWRDOOHPSOR\HHVZKRKDYHKDGDQH[SRVXUHLQFLGHQW %$OOKHSDWLWLV%YDFFLQHDQGYDFFLQDWLRQVHULHVSRVWH[SRVXUHHYDOXDWLRQ DQGIROORZXSVKDOOEHPDGHDYDLODEOH

$WQRFRVWWRWKHHPSOR\HH
$WDUHDVRQDEOHWLPHDQGSODFH
3HUIRUPHGE\RUXQGHUWKHVXSHUYLVLRQRIDOLFHQVHGSK\VLFLDQRUE\ RUXQGHUWKHVXSHUYLVLRQRIDQRWKHUOLFHQVHGKHDOWKFDUHSURIHVVLRQDO &$OOODERUDWRU\WHVWVVKDOOEHFRQGXFWHGE\DQDFFUHGLWHGODERUDWRU\DWQR FRVWWRWKHHPSOR\HH
+HSDWLWLV
$7KHKHSDWLWLVYDFFLQDWLRQVKDOOEHPDGHDYDLODEOHDIWHUWKHHPSOR\HHKDV UHFHLYHGWKHUHTXLUHGSURYLGHGE\WKH&LW\DQGZLWKLQZRUNLQJGD\VRILQLWLDODVVLJQPHQWWRDOOHPSOR\HHVZKRKDYHRFFXSDWLRQDOH[SRVXUHXQOHVVWKHHPSOR\HHKDVSUHYLRXVO\UHFHLYHGWKHFRPSOHWHKHSDWLWLV%YDFFLQDWLRQVHULHVDQWLERG\WHVWLQJKDVUHYHDOHGWKDWWKHHPSOR\HHLVLPPXQHRUWKHYDFFLQHLVFRQWUDLQGLFDWHGIRUPHGLFDOUHDVRQV %,IWKHHPSOR\HHLQLWLDOO\GHFOLQHVWKHKHSDWLWLV%YDFFLQDWLRQEXWDWDODWHU GDWHGZKLOHVWLOOFRYHUHGXQGHUWKLVSROLF\GHFLGHVWRDFFHSWWKH
YDFFLQDWLRQWKH&LW\VKDOOPDNHDYDLODEOHWKHKHSDWLWLV%YDFFLQDWLRQDWWKDWWLPH &(PSOR\HHVLQ&DWHJRU\,DQG&DWHJRU\,,WKDWGHFOLQHWRDFFHSWWKHKHSDWLWLV %YDFFLQDWLRQRIIHUHGE\WKHHPSOR\HUVKDOOVLJQWKHVWDWHPHQWDWWDFKHGDV$SSHQGL[$ ',IDURXWLQHERRVWHUGRVH
V
RIKHSDWLWLV%YDFFLQHLVUHFRPPHQGHGE\WKH
863XEOLF+HDOWK6HUYLFHDWDIXWXUHGDWHVXFKERRVWHUVKDOOEHPDGHDYDLODEOHLQDFFRUGDQFHZLWKWKLVSROLF\ 3RVWH[SRVXUH(YDOXDWLRQDQG)ROORZXS
$5HSRUWLQJRI([SRVXUH,QFLGHQW
7KHVWHSVRXWOLQHGEHORZPXVWEHIROORZHGLPPHGLDWHO\DIWHUDQ H[SRVXUHLQFLGHQWVLQFHWLPLQJPD\EHRIWKHHVVHQFHWRWKHVXFFHVVRIWKHSRVWH[SRVXUHWUHDWPHQW 1RDGYHUVHDFWLRQLVWDNHQDJDLQVWDQH[SRVHGHPSOR\HHLIKHVKH UHIXVHVWRVXEPLWWRWKHSURFHGXUHVRXWOLQHGKHUHLQDVWKHSURFHGXUHVDUHGHVLJQHGIRUWKHEHQHILWRIWKHHPSOR\HH $OOWHVWLQJDQGGLDJQRVLVRIERWKWKHHPSOR\HHDQGWKHVRXUFH LQGLYLGXDOPXVWEHNHSWFRQILGHQWLDOLQDFFRUGDQFHZLWK)HGHUDO6WDWHDQGORFDOUHJXODWLRQV %(PSOR\HH5HVSRQVLELOLWLHV
,PPHGLDWHO\DIWHUH[SRVXUHWKHHPSOR\HHVKDOODVDSSURSULDWH
D$OORZVLWHWREOHHGIUHHO\RUVTXHH]HRXWDIHZGURSVRI EORRG
E:DVKKDQGVRUDIIHFWHGERG\VLWH
VNLQPXFRXVPHPEUDQH
HWF
SURIXVHO\ZLWKVRDSDQGZDWHU
F&DXVHWKHFRQWDPLQDWHGDUHDWREHFOHDQHGDQG
GHFRQWDPLQDWHG
G1RWLI\VXSHUYLVRUZKRPXVWDVVRRQDVSRVVLEOHQRWLI\WKH 'HSDUWPHQW+HDG
H)LOORXWDQLQFLGHQWUHSRUWXVLQJWKHIRUPVXSSOLHGE\&LW\
&&LW\
V5HVSRQVLELOLWLHV)ROORZLQJDUHSRUWRIDQH[SRVXUHLQFLGHQWWKH&LW\VKDOOPDNHLPPHGLDWHO\DYDLODEOHWRWKHH[SRVHGHPSOR\HHDFRQILGHQWLDOPHGLFDOHYDOXDWLRQDQGIROORZXS$QH[SRVXUHLQFLGHQWLVDVSHFLILFH\HPRXWKRWKHUPXFRXVPHPEUDQHQRQLQWDFWVNLQRUSDUHQWHUDOFRQWDFWZLWKEORRGRURWKHUSRWHQWLDOO\LQIHFWLRXVPDWHULDOVWKDWUHVXOWVIURPWKHSHUIRUPDQFHRIDQHPSOR\HH VGXWLHV
,QIRUPDWLRQ3URYLGHGWRWKH+HDOWKFDUH3URIHVVLRQDO $7KH&LW\VKDOOSURYLGHWKHKHDOWKFDUHSURIHVVLRQDOUHVSRQVLEOHIRUWKH HPSOR\HH
VKHSDWLWLV%YDFFLQDWLRQDFRS\RIWKLVSROLF\
%7KH&LW\VKDOOSURYLGHWKHKHDOWKFDUHSURIHVVLRQDOHYDOXDWLQJDQHPSOR\HH DIWHUDQH[SRVXUHLQFLGHQWZLWKWKHIROORZLQJLQIRUPDWLRQ
$FRS\RIWKLVSROLF\
$GHVFULSWLRQRIWKHH[SRVHGHPSOR\HH
VGXWLHVDVWKH\UHODWHWRWKH
H[SRVXUHLQFLGHQW

'RFXPHQWDWLRQRIWKHURXWH
V
RIH[SRVXUHDQGFLUFXPVWDQFHVXQGHU
ZKLFKH[SRVXUHRFFXUUHG
5HVXOWVRIWKHVRXUFHLQGLYLGXDO
VEORRGWHVWLQJLIDYDLODEOH
DQG
$OOPHGLFDOUHFRUGVUHOHYDQWWRWKHDSSURSULDWHWUHDWPHQWRIWKH HPSOR\HHLQFOXGLQJYDFFLQDWLRQVWDWXVZKLFKDUHWKHHPSOR\HU VUHVSRQVLELOLW\WRPDLQWDLQ
+HDOWKFDUH3URIHVVLRQDO¶V:ULWWHQ2SLQLRQ7KH&LW\VKDOOREWDLQDQGSURYLGHWKHHPSOR\HHZLWKDFRS\RIWKHHYDOXDWLQJKHDOWKFDUHSURIHVVLRQDO VZULWWHQRSLQLRQZLWKLQGD\VRIWKHFRPSOHWLRQRIWKHHYDOXDWLRQ $7KHKHDOWKFDUHSURIHVVLRQDO
VZULWWHQRSLQLRQIRUKHSDWLWLV%YDFFLQDWLRQ
VKDOOEHOLPLWHGWRZKHWKHUKHSDWLWLV%YDFFLQDWLRQLVLQGLFDWHGIRUDQHPSOR\HHDQGLIWKHHPSOR\HHKDVUHFHLYHGVXFKYDFFLQDWLRQ %7KHKHDOWKFDUHSURIHVVLRQDO
VZULWWHQRSLQLRQIRUSRVWH[SRVXUHHYDOXDWLRQ
DQGIROORZXSVKDOOEHOLPLWHGWRWKHIROORZLQJLQIRUPDWLRQ
7KDWWKHHPSOR\HHKDVEHHQLQIRUPHGRIWKHUHVXOWVRIWKH

HYDOXDWLRQ
DQG

7KDWWKHHPSOR\HHKDVEHHQWROGDERXWDQ\PHGLFDOFRQGLWLRQV UHVXOWLQJIURPH[SRVXUHWREORRGRURWKHUSRWHQWLDOO\LQIHFWLRXVPDWHULDOVZKLFKUHTXLUHIXUWKHUHYDOXDWLRQRUWUHDWPHQW &$OORWKHUILQGLQJVRUGLDJQRVHVVKDOOUHPDLQFRQILGHQWLDODQGVKDOOQRWEH LQFOXGHGLQWKHZULWWHQUHSRUW
) &20081,&$7,2162)+$=$5'672(03/2<((6
/DEHOV
$:DUQLQJODEHOVVKDOOEHDIIL[HGWRFRQWDLQHUVRIUHJXODWHGZDVWH UHIULJHUDWRUVDQGIUHH]HUVFRQWDLQLQJEORRGRURWKHUSRWHQWLDOO\LQIHFWLRXVPDWHULDO DQGRWKHUFRQWDLQHUVXVHGWRVWRUHWUDQVSRUWRUVKLSEORRGRURWKHUSRWHQWLDOO\LQIHFWLRXVPDWHULDOVH[FHSWDVSURYLGHGLQWKLVVHFWLRQ %/DEHOVUHTXLUHGE\WKLVVHFWLRQVKDOOLQFOXGHHLWKHUWKHIROORZLQJOHJHQG
RULQFDVHRIUHJXODWHGZDVWHWKHOHJHQG

%LRKD]DUGRXV:DVWH
DVGHVFULEHGLQ+HDOWKDQG6DIHW\&RGH6HFWLRQ &7KHVHODEHOVVKDOOEHIOXRUHVFHQWRUDQJHRURUDQJHUHGDQGRU SUHGRPLQDWHO\VRZLWKOHWWHULQJRUV\PEROVLQDFRQWUDVWLQJFRORU '5HTXLUHGODEHOVVKDOOHLWKHUEHDQLQWHJUDOSDUWRIWKHFRQWDLQHURUVKDOOEH DIIL[HGDVFORVHDVIHDVLEOHWRWKHFRQWDLQHUE\VWULQJZLUHDGKHVLYHRURWKHUPHWKRGWKDWSUHYHQWVWKHLUORVVRUXQLQWHQWLRQDOUHPRYDO (%DJVXVHGWRFRQWDLQUHJXODWHGZDVWHVKDOOEHFRORUFRGHGUHGDQGVKDOOEH ODEHOHGLQDFFRUGDQFHZLWKWKLVVHFWLRQ
),QGLYLGXDOFRQWDLQHUVRIEORRGRURWKHUSRWHQWLDOO\LQIHFWLRXVPDWHULDOVWKDW DUHSODFHGLQDODEHOHGFRQWDLQHUGXULQJVWRUDJHWUDQVSRUWVKLSPHQWRUGLVSRVDODUHH[HPSWHGIURPWKHODEHOLQJUHTXLUHPHQW
*/DEHOVUHTXLUHGIRUFRQWDPLQDWHGHTXLSPHQWVKDOOEHLQDFFRUGDQFHZLWK WKLVVHFWLRQDQGVKDOODOVRVWDWHZKLFKSRUWLRQVRIWKHHTXLSPHQWUHPDLQFRQWDPLQDWHG +5HJXODWHGZDVWHWKDWKDVEHHQGHFRQWDPLQDWHGQHHGQRWEHODEHOHGDQG FRORUFRGHG
,QIRUPDWLRQDQG7UDLQLQJ
$$OOHPSOR\HHVZLWKRFFXSDWLRQDOH[SRVXUHVKDOOSDUWLFLSDWHLQDWUDLQLQJ SURJUDPDWQRFRVWWRWKHHPSOR\HH
%7UDLQLQJVKDOOEHSURYLGHGDWWKHWLPHRILQLWLDODVVLJQPHQWWRWDVNVZKHUH RFFXSDWLRQDOH[SRVXUHPD\WDNHSODFHDQGDWOHDVWDQQXDOO\WKHUHDIWHU &7KH&LW\RI:DWHUIRUGVKDOOSURYLGHDGGLWLRQDOWUDLQLQJZKHQFKDQJHVVXFK DVPRGLILFDWLRQRIWDVNVRUSURFHGXUHVRULQVWLWXWLRQRIQHZWDVNVRUSURFHGXUHVDIIHFWWKHHPSOR\HH VRFFXSDWLRQDOH[SRVXUH
'7KHWUDLQLQJSURJUDPVKDOOFRQWDLQDWOHDVWWKHIROORZLQJ
$QDFFHVVLEOHFRS\RIWKHUHJXODWRU\WH[WRIWKLVSROLF\DQGDQ H[SODQDWLRQRILWVFRQWHQWV

$JHQHUDOH[SODQDWLRQRIWKHHSLGHPLRORJ\DQGV\PSWRPVRI EORRGERUQHGLVHDVHV

$QH[SODQDWLRQRIWKHPRGHVRIWUDQVPLVVLRQRIEORRGERUQH SDWKRJHQV
$QH[SODQDWLRQRIWKH&LW\RI:DWHUIRUGH[SRVXUHFRQWUROSODQDQG WKHPHDQVE\ZKLFKWKHHPSOR\HHFDQREWDLQDFRS\RIWKHZULWWHQSODQ
$QH[SODQDWLRQRIWKHDSSURSULDWHPHWKRGVIRUUHFRJQL]LQJWDVNVDQG RWKHUDFWLYLWLHVWKDWPD\LQYROYHH[SRVXUHWREORRGDQGRWKHUSRWHQWLDOO\LQIHFWLRXVPDWHULDOV
$QH[SODQDWLRQRIWKHXVHDQGOLPLWDWLRQVRIPHWKRGVWKDWZLOO SUHYHQWRUUHGXFHH[SRVXUHLQFOXGLQJDSSURSULDWHHQJLQHHULQJFRQWUROVZRUNSUDFWLFHVDQGSHUVRQDOSURWHFWLYHHTXLSPHQW
,QIRUPDWLRQRQWKHW\SHVSURSHUXVHORFDWLRQUHPRYDOKDQGOLQJ GHFRQWDPLQDWLRQDQGGLVSRVDORISHUVRQDOSURWHFWLYHHTXLSPHQW

$QH[SODQDWLRQRIWKHEDVLVIRUVHOHFWLRQRISHUVRQDOSURWHFWLYH

HTXLSPHQW

,QIRUPDWLRQRQWKHKHSDWLWLV%YDFFLQHLQFOXGLQJLQIRUPDWLRQRQLWV HIILFDF\VDIHW\PHWKRGRIDGPLQLVWUDWLRQDQGWKHEHQHILWVRIEHLQJYDFFLQDWHG ,QIRUPDWLRQRQWKHDSSURSULDWHDFWLRQVWRWDNHDQGSHUVRQVWR FRQWDFWLQDQHPHUJHQF\LQYROYLQJEORRGRURWKHUSRWHQWLDOO\LQIHFWLRXVPDWHULDOV
$QH[SODQDWLRQRIWKHSURFHGXUHWRIROORZLIDQH[SRVXUHLQFLGHQW RFFXUVLQFOXGLQJWKHPHWKRGRIUHSRUWLQJWKHLQFLGHQWDQGWKHPHGLFDOIROORZXSWKDWZLOOEHPDGHDYDLODEOH
,QIRUPDWLRQRQWKHSRVWH[SRVXUHHYDOXDWLRQDQGIROORZXSWKDWWKH &LW\RI:DWHUIRUGLVUHTXLUHGWRSURYLGHIRUWKHHPSOR\HHIROORZLQJDQH[SRVXUHLQFLGHQW
$QH[SODQDWLRQRIWKHODEHOVDQGRUFRORUFRGLQJUHTXLUHGE\WKLV SODQ
$QRSSRUWXQLW\IRULQWHUDFWLYHTXHVWLRQVDQGDQVZHUVZLWKWKH SHUVRQFRQGXFWLQJWKHWUDLQLQJVHVVLRQ
(7KHSHUVRQFRQGXFWLQJWKHWUDLQLQJVKDOOEHNQRZOHGJHDEOHLQWKHVXEMHFW PDWWHUFRYHUHGE\WKHHOHPHQWVFRQWDLQHGLQWKHWUDLQLQJSURJUDP * 5(&25'.((3,1*
0HGLFDO5HFRUGV
$$FFXUDWHUHFRUGVVKDOOEHPDLQWDLQHGIRUHDFKHPSOR\HHZLWKRFFXSDWLRQDOH[SRVXUHIRUWKHGXUDWLRQRIHPSOR\PHQWSOXV\HDUV0HGLFDOUHFRUGVVKDOO LQFOXGHWKHIROORZLQJ

1DPHDQGVRFLDOVHFXULW\QXPEHURIWKHHPSOR\HH
$FRS\RIWKHHPSOR\HH
VKHSDWLWLV%YDFFLQDWLRQVWDWXVLQFOXGLQJ
WKHGDWHVRIDOOWKHKHSDWLWLV%YDFFLQDWLRQVDQGDQ\PHGLFDOUHFRUGVUHODWLYHWRWKHHPSOR\HH VDELOLW\WRUHFHLYHYDFFLQDWLRQ

$FRS\RIDOOUHVXOWVRIH[DPLQDWLRQVPHGLFDOWHVWLQJDQGIROORZXS SURFHGXUHV
7KH&LW\
VFRS\RIWKHKHDOWKFDUHSURIHVVLRQDO
VZULWWHQRSLQLRQ

$FRS\RIWKHLQIRUPDWLRQSURYLGHGWRWKHH[SRVHGHPSOR\HH %7KH&LW\RI:DWHUIRUGVKDOOHQVXUHWKDWWKHHPSOR\HH VPHGLFDOUHFRUGVDUH
NHSWFRQILGHQWLDODQGDUHQRWGLVFORVHGRUUHSRUWHGZLWKRXWWKHHPSOR\HH VH[SUHVVZULWWHQFRQVHQWWRDQ\SHUVRQZLWKLQRURXWVLGHWKHZRUNSODFHH[FHSWDVUHTXLUHGE\ODZ 7UDLQLQJ5HFRUGV
$7UDLQLQJUHFRUGVVKDOOLQFOXGHWKHGDWHVRIWKHWUDLQLQJVHVVLRQVDVXPPDU\ RIWKHWUDLQLQJVHVVLRQVWKHQDPHVDQGTXDOLILFDWLRQVRISHUVRQVFRQGXFWLQJWKHWUDLQLQJDQGWKHQDPHVDQGMREWLWOHVRIDOOSHUVRQVDWWHQGLQJWKHWUDLQLQJVHVVLRQV %7UDLQLQJUHFRUGVVKDOOEHPDLQWDLQHGIRU\HDUVIURPWKHGDWHRQZKLFKWKH WUDLQLQJRFFXUUHG
$YDLODELOLW\
$7KH&LW\VKDOOPDNHDOOWUDLQLQJUHFRUGVUHTXLUHGE\WKLVSROLF\DYDLODEOH XSRQUHTXHVWWRHPSOR\HHVHPSOR\HHUHSUHVHQWDWLYHVDQG26+$RU6WDWHLQVSHFWRUVIRUH[DPLQDWLRQDQGFRS\LQJ

$33(1',;$
+(3$7,7,6%9$&&,1('(&/,1$7,21
,XQGHUVWDQGWKDWGXHWRP\RFFXSDWLRQDOH[SRVXUHWREORRGRURWKHUSRWHQWLDOO\LQIHFWLRXVPDWHULDOV,PD\EHDWULVNRIDFTXLULQJKHSDWLWLV%YLUXV +%9
LQIHFWLRQ,KDYHEHHQJLYHQWKHRSSRUWXQLW\WREHYDFFLQDWHGZLWKKHSDWLWLV%YDFFLQHDWQRFKDUJHWRP\VHOI+RZHYHU,GHFOLQHKHSDWLWLV%YDFFLQDWLRQDWWKLVWLPH,XQGHUVWDQGWKDWE\GHFOLQLQJWKLV YDFFLQHWKDWE\GHFOLQLQJWKLVYDFFLQH,FRQWLQXHWREHDWULVNRIDFTXLULQJKHSDWLWLV%DVHULRXVGLVHDVH,ILQWKHIXWXUH,FRQWLQXHWRKDYHRFFXSDWLRQDOH[SRVXUHWREORRGRURWKHUSRWHQWLDOO\LQIHFWLRXVPDWHULDOVDQG,ZDQWWREHYDFFLQDWHGZLWKKHSDWLWLV%YDFFLQH,FDQUHFHLYHWKHYDFFLQDWLRQVHULHVDWQRFKDUJHWRPHBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB(PSOR\HH1DPH 3OHDVH3ULQW

BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB BBBBBBBBBBBBBBBBBBBBBBBBBBBBB(PSOR\HH6LJQDWXUH 'DWH
$33(1',;%
&216(17)25+(3$7,7,6%9$&&,1(,0081,=$7,21352*5$0
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB(PSOR\HH¶V1DPH 3ULQW
-RE7LWOH 'HSDUWPHQW
,+(5(%<$&.12:/('*(,+$9(%((1$'9,6('2)

WKHULVNVDQGFRPSOLFDWLRQVLQFRQWUDFWLQJ+HSDWLWLV%
WKHDYDLODELOLW\RIWKH+HSDWLWLV%9DFFLQHDW12FRVWWRPH
WKHDOWHUQDWLYHVWKHULVNVDQGWKHEHQHILWVRIWKHYDFFLQHDQG
WKHSRVVLEOHFRQVHTXHQFHRIQRWEHLQJDGHTXDWHO\LPPXQL]HGIRU+HSDWLWLV%,KDYHUHFHLYHGWKHOLWHUDWXUHDQGKDYHUHDGWKHLQIRUPDWLRQDERXWWKH+HSDWLWLV%YDFFLQHDQGKDYHKDGWKHRSSRUWXQLW\WRDVNTXHVWLRQVZKLFKZHUHDQVZHUHGWRP\VDWLVIDFWLRQBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB(PSOR\HH¶V6LJQDWXUH :LWQHVV6LJQDWXUH 'DWH,XQGHUVWDQGWKDWSDUWLFLSDWLRQLQWKLVLPPXQL]DWLRQSURJUDPLVYROXQWDU\,KHUHE\5(48(67725(&(,9(7+(+(3$7,7,6%9$&&,1(LQDFFRUGDQFHZLWKWKHSROLFLHVDQGSURFHGXUHVHVWDEOLVKHGE\WKH&LW\RI:DWHUIRUGBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB(PSOR\HH¶V6LJQDWXUH :LWQHVV6LJQDWXUH 'DWH,KDYHEHHQSUHYLRXVO\YDFFLQDWHGIRU+HSDWLWLV%RQBBBBBBBBBBBBBBBBBBBBBBBBBBBBDWBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB /RFDWLRQ
BBBBBBBBBBBBBBBBBBBBBB BBBBBBBBBBBBBBBBBBBBBB(PSOR\HH¶V6LJQDWXUH 'DWH
$33(1',;&
+(3$7,7,6%9$&&,1$7,215(&25'
(PSOR\HH
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB'DWH+LUHG
BBBBBBBBBBBBBBBBBBBB
%LUWK'DWH
BBBBBBBBBBBBBBBBBBBBBBBBB 6H[
BBBBBBB 661
BBBBBBBBBBBBBBBBBBB'HFOLQHG" <HV 1RBBBBBBB ,I\HVGHFOLQDWLRQIRUPVLJQHG"<HVBBBB1RBBBB&RQVHQW)RUPVLJQHG"<HVBBBB1RBBBB'HSDUWPHQWBBBBBBBBBBBBBBBBBBBBBBBBBB 9DFFLQDWLRQ7UDFNLQJ
9DFFLQH7\SH*LYHQBBBBBBBBBBBBBBBBBBBBBB
'XH&RPSOHWH ,QMHFW6LWH 3K\VLFLDQ /RW1R 'RVH BBBBBBBBBBBB BBBBBBBBBBBB BBBBBBBBBBBBBBBBBB'RVH BBBBBBBBBBBB BBBBBBBBBBBB BBBBBBBBBBBBBBBBBB'RVH BBBBBBBBBBBB BBBBBBBBBBBB BBBBBBBBBBBBBBBBBB'RVH BBBBBBBBBBBB BBBBBBBBBBBB BBBBBBBBBBBBBBBBBB1RWHV5HPDUNVBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 6FUHHQ7HVW5HVXOWV
7HVW 'DWH 5HVXOW +%V$E BBBBBBBBBBBB BBBBBBBBBBBB +%V$J BBBBBBBBBBBB BBBBBBBBBBBB +%F$E BBBBBBBBBBBB BBBBBBBBBBBB
$33(1',;'
'2&80(17$7,212)67$))('8&$7,212135(9(17,212)
(;32685(72%/22'%251(3$7+2*(16
(PSOR\HH1DPHBBBBBBBBBBBBBBBBBBBBBBBBBBB 'HSDUWPHQWBBBBBBBBBBBBBBBBBBB -RE7LWOHBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 'DWHBBBBBBBBBBBBBBBBBBBBBBBBB,QVWUXFWRU¶V1DPHBBBBBBBBBBBBBBBBBBBBBBBBBB 7LWOHBBBBBBBBBBBBBBBBBBBBBBBBB,QIRUPDWLRQ3URYLGHG9LGHR²8QLYHUVDO3UHFDXWLRQV $,'6DQG+HSDWLWLV%3UHYHQWLRQIRU+HDOWKFDUH
:RUNHUV

&LW\RI:DWHUIRUG([SRVXUH&RQWURO3ODQ²2FFXSDWLRQDO([SRVXUHWR%ORRGERPH 3DWKRJHQV
([SRVXUHGHWHUPLQDWLRQ0HWKRGVRI&RPSOLDQFH
8QLYHUVDO3UHFDXWLRQV(QJLQHHULQJDQG:RUN3UDFWLFH&RQWUROV3HUVRQDO3URWHFWLYH(TXLSPHQW+RXVHNHHSLQJ +HSDWLWLV%9DFFLQDWLRQDQG3RVWH[SRVXUH(YDOXDWLRQDQG)ROORZXS *HQHUDO+HSDWLWLV%9DFFLQDWLRQ3RVWH[SRVXUH(YDOXDWLRQDQG)ROORZXS,QIRUPDWLRQ3URYLGHGWRWKH+HDOWKFDUH3URIHVVLRQDO+HDOWK3URIHVVLRQDO V:ULWWHQ2SLQLRQ
&RPPXQLFDWLRQRI+D]DUGVWR(PSOR\HH
/DEHOV,QIRUPDWLRQDQG7UDLQLQJ
5HFRUGNHHSLQJ
0HGLFDO5HFRUGV7UDLQLQJ5HFRUGV$YDLODELOLW\
$SSHQGL[$±+HSDWLWLV%9DFFLQH'HFOLQDWLRQ$SSHQGL[%±&RQVHQWIRU+HSDWLWLV%9DFFLQH,PPXQL]DWLRQ3URJUDP$SSHQGL[&±+HSDWLWLV%9DFFLQDWLRQ5HFRUG$SSHQGL['±'RFXPHQWDWLRQRI6WDII(GXFDWLRQRQ3UHYHQWLRQRI([SRVXUHWR %ORRGERUQH3DWKRJHQV
,KHUHE\FHUWLI\WKDWWKHDERYHLQIRUPDWLRQKDVEHHQSURYLGHGWKDW,DPVDWLVILHGWKDW,KDYHDJRRGXQGHUVWDQGLQJRILWVFRQWHQWVDQGWKDW,KDGDPSOHRSSRUWXQLW\WRKDYHP\TXHVWLRQVDQVZHUHGBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB BBBBBBBBBBBBBBBBBBBBBBB(PSOR\HH6LJQDWXUH 'DWH
(03/2<((75$,1,1*6,*1836+((7
67$))('8&$7,212135(9(17,212)(;32685(72%/22'%251( 3$7+2*(16
1DPH -RE7LWOH
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB BBBBBBBBBBBBBBBBBBBBBBBBBBBBBB,QVWUXFWRU6LJQDWXUH 'DWHBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB BBBBBBBBBBBBBBBBBBBBBBBBBBBBB,QVWUXFWRU7LWOH 3ODFHRI(PSOR\PHQW
$33(1',;(
(;32685(5(325772%/22'%251(3$7+2*(16
1DPHBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB -RE7LWOHBBBBBBBBBBBBBBBBBBBBBB 'DWH7LPHRI([SRVXUHBBBBBBBBBBBBBBBBBB 'DWH7LPHRI5HSRUWBBBBBBBBBBBB([SRVXUH7R BBBBBBB%ORRG BBBBBBB,QWHUQDO%RG\)OXLGVBBBBBBB%RG\)OXLGZLWKYLVLEOHEORRG BBBBBBB6HPLQDO)OXLGBBBBBBB9DJLQDO6HFUHWLRQV7\SHRI([SRVXUH BBBBBBB1HHGOHVWLFNVKDUSVDFFLGHQWBBBBBBB&RQWDFWZLWKPXFRXVPHPEUDQHV H\HVPRXWKQRVH
BBBBBBB&RQWDFWZLWKVNLQ
FLUFOHDOOWKDWDSSO\
EURNHQFKDSSHGDEUDGHGGHUPDWLWLVSURORQJHGFRQWDFW H[WHQVLYHFRQWDFW6HYHULW\RI([SRVXUH +RZPXFKIOXLG"BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB+RZORQJZDVH[SRVXUH"BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB+RZVHYHUHZDVWKHLQMXU\"BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB6RXUFHRI([SRVXUH 1DPHLINQRZQ
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
$33(1',;)
&$/26+$)$&76+((7
6$)(7<1(('/(6 1(('/(/(666<67(06

)LOH1R
$SSURYHG &21),1('63$&((175< 3(50,7
'HSDUWPHQW8VH2QO\
&LW\RI:DWHUIRUG(6WUHHW:DWHUIRUG&$
ZZZFLW\RIZDWHUIRUGRUJ
127(
Permit valid for 8 hours only. All copies of permit will remain at job site until job is completed. 'DWH 7LPH,VVXHG
6LWH/RFDWLRQDQG'HVFULSWLRQ

([SLUDWLRQ'DWHDQG7LPH

3XUSRVHRI(QWU\
&UHZ6XSHUYLVRU&RQWDFW1XPEHU
7\SHRI&UHZ

%2/''(127(60,1,0805(48,5(0(17672%(&203/(7('$1'5(9,(:('35,2572(175<

/RFN2XW'HHQHUJL]H7U\RXW )XOO%RG\+DUQHVVZ´'´ULQJ/LQH V
%URNHQ&DSSHG%ODQNHG (PHUJHQF\(VFDSH5HWULHYDO(TXLSPHQW3XUJH)OXVKDQG9HQW /LIHOLQHV9HQWLODWLRQ )LUH([WLQJXLVKHUV6HFXUH$UHD 3RVWDQG)ODJ
/LJKWLQJ
([SORVLYH3URRI
%UHDWKLQJ$SSDUDWXV 3URWHFWLYH&ORWKLQJ5HVXVFLWDWRU²,QKDODWRU 5HVSLUDWRU V

$LU3XULI\LQJ
6WDQGE\6DIHW\3HUVRQQHO %XUQLQJDQG:HOGLQJ3HUPLW(PSOR\HHVLQIRUPHGRIVSHFLILFKD]DUGV &RPPXQLFDWLRQ(TXLSPHQW3URFHGXUHVUHYLHZHGZLWKHDFKHPSOR\HH 5HVFXH(TXLSPHQW$WPRVSKHULFWHVWLQFRPSOLDQFH 5HVFXH6HUYLFH&RQWLQXRXVPRQLWRULQJUHTXLUHG 127(
,WHPVWKDWGRQRWDSSO\HQWHU1$

5(&25'&217,18286021,725,1*5(68/76(9(5<+2856

7(67
6 72%(7$.(1 (175</(9(/
3HUFHQWRI2[\JHQ
72/RZHU)ODPPDEOH/LPLW 8QGHU&DUERQ0RQR[LGH 330$URPDWLF+\GURFDUERQ 330 330+\GURJHQ&\DQLGH
6NLQ

330+\GURJHQ6XOILGH 330
3306XOIXU'LR[LGH 330
330$PPRQLD 330
127(
6KRUWWHUPH[SRVXUHOLPLW
(PSOR\HHFDQZRUNLQWKHDUHDXSWRPLQXWHVKRXU7LPH:HLJKWHG$YHUDJH (PSOR\HHFDQZRUNLQDUHDKRXUV
ORQJHUZLWKDSSURSULDWHUHVSLUDWRU\SURWHFWLRQ
*DV7HVWHU1DPH
&KHFN,QVWUXPHQW
6XSHUYLVRU$XWKRUL]LQJ(QWU\$OO$ERYH&RQGLWLRQV6DWLVILHG

&,7<2):$7(5)25'
&21),1('63$&(6
32/,&<
&LW\RI:DWHUIRUG
(6WUHHW32%R[

:DWHUIRUG&$

)D[

&LW\RI:DWHUIRUG
&RQILQHG6SDFHV3ROLF\
7DEOHRI&RQWHQWV
$ 6FRSHRIWKLV3URJUDP«««««««««««««««««« % ,QWHQWDQG3XUSRVH««««««««««««««««««« & 7HUPLQRORJ\«««««««««««««««««««««« ' 'HILQLWLRQRID³&RQILQHG6SDFH´«««««««««««««« ( 'HILQLWLRQRID³3HUPLW5HTXLUHG&RQILQHG6SDFH´«««««« ) &ODVVLILFDWLRQRI&RQILQHG6SDFHV««««««««««««««
1RWD&RQILQHG6SDFH«««««««««««««««« 1RW3HUPLW6SDFH«««««««««««««««««« 3HUPLW6SDFH«««««««««««««««««««« * &KHFNOLVWIRUWKH(QWU\6XSHUYLVRU«««««««««««««

+ (QWU\LQWR3HUPLW6SDFHV«««««««««««««««««
(QWU\3HUPLWDUH5HTXLUHGIRU(QWU\«««««««««« 3UH(QWU\3URFHGXUHV«««««««««««««««« (QWU\3HUPLWV««««««««««««««««««« 7KH$WWHQGDQW««««««««««««««««««« 7KH$VVLVWDQW«««««««««««««««««««« 7KH(QWUDQW«««««««««««««««««««« , 4XDOLILFDWLRQVIRU3HUVRQV3HUIRUPLQJ:RUN,QRU$URXQG3HUPLW 6SDFHV«««««««««««««««««««««««««
(QWU\6XSHUYLVRU«««««««««««««««««« (QWUDQW«««««««««««««««««««««« $WWHQGDQW««««««««««««««««««««« $VVLVWDQW«««««««««««««««««««««« - 'HVLUDEOH7UDLQLQJIRU$WWHQGDQWV««««««««««««« . &URVV7UDLQLQJDQG:RUN$VVLJQPHQWV««««««««««« / 0LQLPXP0DQQLQJ«««««««««««««««««««

0:DUQLQJ6LJQV««««««««««««««««««««« 1 )RUFHG$LU9HQWLODWLRQ«««««««««««««««««« *HQHUDO5HTXLUHPHQWV«««««««««««««««« )RUFHG$LU9HQWLODWLRQRI6HZHU0DQKROHV:HWZHOOVDQG VLPLODU6WUXFWXUHV«««««««««««««««««

)RUFHG$LU9HQWLODWLRQRI(PSW\'LJHVWHUV««««««« &RQWLQXRXV)RUFHG$LU9HQWLODWLRQIRU3XUSRVHVRI0DNLQJD &RQILQHG6SDFH6DIHIRU(QWU\ZLWKRXW3ULRU,VVXDQFHRIDQ(QWU\3HUPLW««««««««««««««««««««
2 3UH(QWU\$WPRVSKHULF7HVWLQJ««««««««««««««
7HVWLQJEHIRUH5HPRYDORIDQ(QWUDQFH&RYHU«««««« 5HTXLUHG7HVWLQJ$IWHU5HPRYDORI(QWUDQFH&RYHU««« 7HVW5HVXOWVVKDOOEH5HFRUGHG«««««««««««« 3 3HUPLW6SDFH5HFODVVLILFDWLRQZKHUH1R(QWU\LVWREH0DGH«« 5HJXODWRU\3URYLVLRQV«««««««««««««««« 3URYLVLRQV 5HTXLUHPHQWVIRU5HFODVVLILFDWLRQV««««« 4 3HUPLW6SDFH5HFODVVLILFDWLRQZKHUHDQ(QWU\LVWREH0DGH«« 5 5HVFXH««««««««««««««««««««««««« 6 5HVFXHE\5HWULHYDO'HYLFH«««««««««««««««« 7 5HWULHYDOE\5HVFXH7HDP )LUH'HSDUWPHQW
««««««««
8 8VHRI0DQKROH*XDUGVDQG+DUGKDWV««««««««««« 9 8VHRI,QWULQVLFDOO\6DIH/LJKWLQJ«««««««««««««« :7UDIILF&RQWURO««««««««««««««««««««« ; &RQWUDFWRUV««««««««««««««««««««««« < ,QIHFWLRXV:DVWHV«««««««««««««««««««« = %ORRG%RUQH3DWKRJHQV««««««««««««««««««
$$ (QJXOIPHQW«««««««««««««««««««««« %% 1RQ&RQIRUPLQJ3HUPLW6SDFHV««««««««««««« && 6SHFLILFDWLRQVIRU*DV'HWHFWRUV««««««««««««««
'' $SSHQGL[$±3HUPLW5HTXLUHG&RQILQHG6SDFH
35&6

'HFLVLRQ)ORZ&KDUW««««««««««««««««««
(( $SSHQGL[%±3UH(QWU\(QWU\&KHFN/LVWIRU&RQILQHG6SDFH (QWU\3HUPLW«««««««««««««««««««««
)) $SSHQGL[&±&RQILQHG6SDFH(QWU\3HUPLW«««««««« **$SSHQGL['±+RW:RUN3HUPLW«««««««««««««
&21),1('63$&(632/,&<
$ 6&23(2)7+,6352*5$07KLVSURJUDPVKDOODSSO\DQGEHHQIRUFHGLQDQ\ZDVWHZDWHUFROOHFWLRQWUHDWPHQWRUGLVSRVDOIDFLOLW\RUVWUXFWXUHZKHUHWKH&LW\&RXQFLOVLWVDVWKHJRYHUQLQJERG\LQFOXGLQJWKRVH6SHFLDO'LVWULFWVZKHUHWKH&LW\&RXQFLOVLWVDVWKH%RDUGRI'LUHFWRUV% ,17(17$1'385326(,WLVWKHLQWHQWDQGSXUSRVHRIWKLV3URJUDPWRREWDLQDQGHQVXUHWKHIROORZLQJ
&RPSOLDQFHZLWK
&)53DUWV
3HUPLW5HTXLUHG&RQILQHG6SDFHVIRU
*HQHUDO,QGXVWU\
)LQDO5XOH86'HSDUWPHQWRI/DERU2FFXSDWLRQDO6DIHW\DQG+HDOWK$GPLQLVWUDWLRQ 26+$
DVSXEOLVKHGLQWKH)HGHUDO5HJLVWHURQ7KXUVGD\-DQXDU\

DQGDVLWEHFDPHHIIHFWLYHZLWKLQWKH6WDWHRI&DOLIRUQLDRQ-XO\

3URWHFWLRQRIWKHKHDOWKOLIHDQGVDIHW\RISHUVRQVHPSOR\HGLQWDVNVWREH SHUIRUPHGLQIDFLOLWLHVFRYHUHGE\WKH6FRSHRIWKLV3HUPLW5HTXLUHG&RQILQHG6SDFH3URJUDPDVZHOODVSURWHFWLRQRIWKHJHQHUDOZHOIDUHRISHUVRQVFRPLQJLQWRFRQWDFWZLWKWKRVHDFWLYLWLHV 7KLVSURJUDPLVZULWWHQZLWKWKHLQWHQWRIPDNLQJLWSRVVLEOHIRUSHUVRQVWRPDNH HQWU\DQGHJUHVVIURP3HUPLW5HTXLUHG&RQILQHG6SDFHVDQGWRSHUIRUPQHFHVVDU\ZRUNWKHUHLQLQDVDIHPDQQHUWKDWZLOOQHYHUUHTXLUHHPHUJHQF\UHVFXHE\D5HFRYHU\7HDP 7KHIRUHJRLQJLVEDVHGXSRQWKHIROORZLQJ)LQGLQJVDQG'HFODUDWLRQV
x )LQGLQJV
6HZHUDJHIDFLOLWLHVFRYHUHGE\WKH6FRSHRIWKLV3HUPLW5HTXLUHG &RQILQHG3URJUDPDUHVXFKWKDWQRSHUVRQPXVWHQWHURUZRUNLQD&RQILQHG6SDFHWKDWFRQWDLQVDKD]DUGRXVDWPRVSKHUHHYHQLQHPHUJHQF\VLWXDWLRQV$GGLWLRQDOO\DOORWKHUKD]DUGVLQ&RQILQHG6SDFHVWKDWFRXOGFDXVHHPHUJHQF\UHVFXHE\D5HFRYHU\7HDPWREHQHFHVVDU\FDQEHHOLPLQDWHGEHIRUHLWLV QHFHVVDU\IRUDQ\SHUVRQWRHQWHUD&RQILQHG6SDFHDQGRUWKRVHKD]DUGVWKDWFDQQRWEHHOLPLQDWHGLQWKHLUSRWHQWLDOFDQEHRYHUFRPHE\ULJLGFRPSOLDQFHZLWKVDIHW\PHDVXUHVUHTXLUHGE\WKLVSURJUDP x 'HFODUDWLRQ
7KHUHIRUHLWLVGHFODUHGWKDWSULRUWRHQWU\LQWRDQ\3HUPLW5HTXLUHG &RQILQHG6SDFHDQLQYHVWLJDWLRQVKDOOEHPDGHWRGHWHUPLQHDQ\KD]DUGVDQGLIDKD]DUGLVIRXQGWKHQVDLGKD]DUGVKDOOHLWKHUEHUHPRYHGDQGUHQGHUHGVDIHIRUHQWU\RUGHSHQGLQJXSRQWKHKD]DUGIRXQGRYHUFRPHE\DGGLWLRQDOVDIHW\PHDVXUHVUHTXLUHGE\WKLVSURJUDP:KHUHDKD]DUGLVUHPRYHGRUUHQGHUHGVDIH
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
WKHWHUP3(50,75(48,5('&21),1('63$&(VKDOODOVRPHDQ3(50,763$&(RU3(50,7&21),1('63$&(DQGWKRVHWHUPVVKDOOEHXVHGLQWHUFKDQJHDEO\LQWKHSURJUDP$OORIWKRVHWHUPVVKDOOEHFRQVLGHUHGDVKDYLQJWKHVDPHPHDQLQJ:LWKLQWKDWXVHRIWKRVHWHUPVWKHUHIRUH1RQ3HUPLW6SDFHDQG1RQ3HUPLW&RQILQHG6SDFHVKDOODOVRPHDQ1RQ3HUPLW5HTXLUHG&RQILQHG6SDFH' '(),1,7,212)$³&21),1('63$&(´)RUSXUSRVHVRIUHIHUHQFHIROORZLQJLVWKHYHUEDWLPGHILQLWLRQRID&RQILQHG6SDFHFRQWDLQHGLQWKH)HGHUDO5HJLVWHU &)5
3DJH
&RQILQHG6SDFHPHDQVDVSDFHWKDW

,VODUJHHQRXJKDQGVRFRQILJXUHGWKDWDQHPSOR\HHFDQERGLO\HQWHUDQGSHUIRUP DVVLJQHGZRUN
DQG
+DVOLPLWHGRUUHVWULFWHGPHDQVIRUHQWU\RUH[LW
IRUH[DPSOHWDQNVYHVVHOVVLORV
VWRUDJHELQVKRSSHUVYDXOWVDQGSLWVDUHVSDFHVWKDWPD\KDYHOLPLWHGPHDQVRIHQWU\

DQG
,VQRWGHVLJQHGIRUFRQWLQXRXVHPSOR\HHRFFXSDQF\
( '(),1,7,212)$³3(50,75(48,5('&21),1('63$&(´)RUSXUSRVHVRIUHIHUHQFHIROORZLQJLVWKHYHUEDWLPGHILQLWLRQRID3HUPLW5HTXLUHG&RQILQHG6SDFHFRQWDLQHGLQWKH)HGHUDO5HJLVWHU &)5
3DJH
3HUPLWUHTXLUHGFRQILQHGVSDFH
SHUPLWVSDFH
PHDQVDFRQILQHGVSDFHWKDWKDVRQHRUPRUHRIWKHIROORZLQJFKDUDFWHULVWLFV
&RQWDLQVRUKDVDSRWHQWLDOWRFRQWDLQDKD]DUGRXVDWPRVSKHUH &RQWDLQVDPDWHULDOWKDWKDVWKHSRWHQWLDOIRUHQJXOILQJDQHQWUDQW +DVDQLQWHUQDOFRQILJXUDWLRQVXFKWKDWDQHQWUDQWFRXOGEHWUDSSHGRUDVSK\[LDWHG E\LQZDUGO\FRQYHUJLQJZDOOVRUE\DIORRUZKLFKVORSHVGRZQZDUGDQGWDSHUVWRDVPDOOHUFURVVVHFWLRQ RU
&RQWDLQVDQ\RWKHUUHFRJQL]HGVHULRXVVDIHW\RUKHDOWKKD]DUG ) &/$66,),&$7,212)&21),1('63$&(6$OODUHDVDQGVWUXFWXUHVRIWKHVHZHUDJHIDFLOLWLHVZLWKLQWKH6FRSHRIWKLV3URJUDPVKDOOEHVXUYH\HGDQQXDOO\DQGDQ\DUHDRUVWUXFWXUHIRXQGWRKDYHDQ\SRWHQWLDOIRUEHLQJD&RQILQHG6SDFHVKDOOEHLQGLFDWHGRQDPDVWHUOLVWSUHSDUHGIRUWKDWSXUSRVHDQGVKDOOWKHQEHFODVVLILHGLQWRWKHIROORZLQJFDWHJRULHV
1RWD&RQILQHG6SDFH 1RW3HUPLW6SDFH
D 1RSRWHQWLDOIRUDWPRVSKHULFRURWKHUKD]DUG
E 3RWHQWLDOIRUDWPRVSKHULFKD]DUGFRQWUROOHGE\IRUFHGDLU

YHQWLODWLRQ
QRRWKHUKD]DUGRUSRWHQWLDOKD]DUG

3HUPLW6SDFH
D $IWHUSHUPLWUHTXLUHGLQYHVWLJDWLRQDQGWHVWLQJHQWU\ZRUNZLWKLQ DQGHJUHVVPD\EHPDGHZLWKRXWIXUWKHUVDIHJXDUGV
E $IWHUSHUPLWUHTXLUHGLQYHVWLJDWLRQDQGWHVWLQJHQWU\ZRUNZLWKLQ DQGHJUHVVPD\EHPDGHRQO\ZLWKXVHRIFHUWDLQOLVWHGVDIHW\PHDVXUHV F )XOOUDQJHRIVDIHW\PHDVXUHVWREHXWLOL]HGIRUHQWU\ZRUNZLWKLQ DQGHJUHVV
7KHFODVVLILFDWLRQRIHDFKDSSOLFDEOH6SDFHVKDOOEHFHUWLILHGDVEHLQJFRUUHFWE\WKH&LW\$GPLQLVWUDWRU3XEOLF:RUNV'LUHFWRUDQGWKH&KLHIRI2SHUDWLRQVRIWKH::73ZLWKDFRS\WREHSURYLGHGWRWKH6DIHW\2IILFHU&LW\RI:DWHUIRUG7KHFHUWLILFDWLRQRIHDFKVSDFHVKDOOGRFXPHQWWKHEDVLVIRUPDNLQJWKHGHWHUPLQDWLRQDQGVKDOOLQFOXGHWKHGDWHWKHORFDWLRQRIWKHVSDFHDQGWKH VLJQDWXUHRIWKHSHUVRQVPDNLQJWKHFHUWLILFDWLRQ7KHFHUWLILFDWLRQVKDOOEHPDGHUHDGLO\DYDLODEOHWRHDFKHPSOR\HHZKRPD\EHLQYROYHGLQZRUNLQRUDURXQGWKHDSSOLFDEOHVSDFH7KHIROORZLQJVSDFHVVKDOOE\GHILQLWLRQRIWKLV3URJUDPDOZD\VEHFRQVLGHUHGDV3HUPLW5HTXLUHG&RQILQHG6SDFHV 3HUPLW6SDFHV
UHTXLULQJDIXOOUDQJHRIVDIHW\PHDVXUHVWREHXWLOL]HGIRUHQWU\ZRUNZLWKLQDQGHJUHVV D $Q\VHZHUPDQKROH
E $Q\ZHWZHOOZKHWKHUIXOOSDUWLDOO\IXOORUHPSW\ F $Q\GLJHVWHU
LQVLGH
ZKHWKHUHPSW\RUSDUWLDOO\HPSW\H[FHSW
ZKHUHDQHPSW\GLJHVWHUXQGHUFRQWLQXRXVYHQWLODWLRQLVUHFODVVLILFDWLRQDVD1RQ3HUPLW6SDFHZKLOHXQGHUIRUFHGYHQWLODWLRQ G $Q\GU\ZHOOFRQWDLQLQJSRQGHGVHZDJHIRUPRUHWKDQIRXU

KRXUVRUZKHUHWKDWGXUDWLRQLVQRWNQRZQ
1RWH
'HFODVVLILFDWLRQRUUHFODVVLILFDWLRQPD\EHPDGHGXULQJWKHSHUPLWLVVXDQFHSURFHVVLIIRXQGMXVWLILHGE\WKH(QWU\6XSHUYLVRUDIWHUWHVWLQJRIR[\JHQOHYHOV
7KHSURFHVVRIFODVVLI\LQJDQGFHUWLI\LQJVSDFHDV&RQILQHG6SDFHV1RQ&RQILQHG6SDFHVDQG3HUPLW6SDFHVVKDOOLQFOXGHVSHFLILFUHIHUHQFHWRWKHDEVHQFHSUHVHQFHRUSRWHQWLDOIRUSUHVHQFHRIWKHIROORZLQJKD]DUGV7KHSUHVHQFHRUSRWHQWLDOIRUSUHVHQFHRIDQ\RWKHUKD]DUGVKDOODOVREHQRWHG

D 2[\JHQFRQWHQWE )ODPPDEOHJDVHVDQGYDSRUVF 6SHFLILFWR[LFDLUFRQWDPLQDQWVG (QJXOIPHQWH %ORRGERUQHSDWKRJHQLFRUJDQLVPV KD]DUGRXVFRQFHQWUDWLRQV
I :DWHUERUQHSDWKRJHQLFRUJDQLVPV
KD]DUGRXVFRQFHQWUDWLRQV

J 0HFKDQLFDOKD]DUGVK 'LIILFXOW\RILQJUHVVRUHJUHVVL 5HTXLUHPHQWIRUVSHFLILFVDIHW\PHDVXUHV * &+(&./,67)257+((175<683(59,6253ULRUWRLVVXLQJDQ(QWU\3HUPLWIRUD3HUPLW6SDFHDQ(QWU\6XSHUYLVRUVKDOOFRPSOHWHDFKHFNOLVWWKDWDWDPLQLPXPLQFOXGHVWKHIROORZLQJLWHPV
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
9HULI\WKDWUHWULHYDOHTXLSPHQWLVVHWXSSURSHUO\ 9HULI\WKDWDFHOOXODUWHOHSKRQHLVDYDLODEOHIRUXVHDQGWKDWLWKDVDGLDOWRQHDQG DQDGHTXDWHO\FKDUJHGEDWWHU\
:LWQHVVD7DLOJDWH6DIHW\0HHWLQJLQZKLFKMREDVVLJQPHQWVDUHPDGH9HULI\WKDW HDFKSHUVRQLVFHUWLILHGDVEHLQJ4XDOLILHGWRSHUIRUPWKHDSSOLFDEOHMREDVVLJQPHQW V

:KHQDLUYHQWLODWLRQHTXLSPHQWLVVHWXSYHULI\SURSHURSHUDWLRQDQGORFDWLRQ &DOFXODWHDQGUHFRUGUHTXLUHGDLUYHQWLODWLRQWLPHUHTXLUHGSULRUWRHQWU\

9HULI\WKDWORFNRXWWDJRXWSURFHGXUHVKDYHEHHQIROORZHGZKHUHDSSOLFDEOH 9HULI\WKDWDFRS\RIWKLV3HUPLW5HTXLUHG&RQILQHG6SDFH3URJUDPLVDWWKH MREVLWHDQGWKDWWKH$WWHQGDQWKDVWKHQDPHDQGORFDWLRQRIWKHQHDUHVW)LUH6WDWLRQLQZULWLQJ ,QGLFDWHRQWKHFKHFNOLVWZKLFKSHUVRQDOSURWHFWLYHHTXLSPHQWLVWREHXVHGDQG YHULI\WKHSUHVHQFHRIHDFK
,QGLFDWHRQWKHFKHFNOLVWZKLFKVDIHW\HTXLSPHQWLVWREHXVHGDQGYHULI\WKH SUHVHQFHRIHDFK
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
+ (175<,1723(50,763$&(6)ROORZLQJDUHWKH6SDFHVDUHDVDQGVWUXFWXUHVWKDWDUHDGGUHVVHGE\WKLV6HFWLRQDV3HUPLW6SDFHV
6SDFHVGHVLJQDWHGE\WKLV3URJUDPDVEHLQJ3HUPLW5HTXLUHG&RQILQHG6SDFHV

3HUPLW6SDFHG
E\GHILQLWLRQ
6SDFHVSUHGHWHUPLQHGDVEHLQJ3HUPLW5HTXLUHG&RQILQHG6SDFHV 3HUPLW
6SDFHV
GXULQJWKHFHUWLILFDWLRQRI&RQILQHG6SDFHSURFHVVUHTXLUHGE\WKH 3URJUDP
6SDFHVQRWGHWHUPLQHGSUHYLRXVO\WREH3HUPLW5HTXLUHG&RQILQHG6SDFHV 3HUPLW
6SDFHV
EXWZKHUHFKDQJHGFRQGLWLRQVRUGLVFRYHUHGFRQGLWLRQVLQGLFDWHWKDW3HUPLW5HTXLUHG&RQILQHG6SDFH 3HUPLW6SDFH
UHTXLUHPHQWVPD\DSSO\

1HZFRQVWUXFWLRQRUVLPLODU6SDFHVZKHUHDGHWHUPLQDWLRQKDVQRWEHHQPDGH (QWU\3HUPLWDUH5HTXLUHGIRU(QWU\(QWU\LVKHUHE\SURKLELWHGLQWRDQ\3HUPLW6SDFHXQOHVVDQ(QWU\3HUPLWLVILUVWLVVXHGLQDFFRUGDQFHZLWKWKHSURFHGXUHVDQGUHTXLUHPHQWVRIWKLV3URJUDP7KHRQO\H[FHSWLRQVKDOOEHHQWU\E\D5HVFXH7HDPIURPD&LW\RU &RXQW\)LUH'HSDUWPHQWIRUSXUSRVHVRIPDNLQJDUHVFXH 3UH(QWU\3URFHGXUHV:KHQLWLVGHWHUPLQHGWKDWD3HUPLW6SDFHPXVW RUPD\
EHHQWHUHGDQ(QWU\6XSHUYLVRUVKDOOJRWRWKHMREVLWHIRUSXUSRVHVRIGHWHUPLQLQJSRWHQWLDOKD]DUGVHQVXULQJSHUIRUPDQFHRISUHHQWU\WHVWLQJYHULI\LQJSUHVHQFHDQGXVHRISURSHUVDIHW\HTXLSPHQWDQGVDIHJXDUGVDQGILQDOO\LVVXLQJRIDQ(QWU\3HUPLW3ULRUWRLVVXLQJDQG(QWU\3HUPLWWKH(QWU\6XSHUYLVRUVKDOOFRPSOHWHDSUHHQWU\FKHFNOLVWPDNHWKHGHWHUPLQDWLRQVDQGUHFRUGWKHGDWDWKDWLVGHWDLOHGHOVHZKHUHLQWKLV3URJUDP7KH(QWU\6XSHUYLVRUVKDOOWKHQFHUWLI\RQWKH(QWU\3HUPLWWKDWDOOKD]DUGVDQGUHDVRQDEO\H[SHFWHGSRWHQWLDOKD]DUGVKDYHEHHQHOLPLQDWHGDQGLVVXHWKH(QWU\3HUPLWWRWKH$WWHQGDQW8SRQUHFHLSWRIWKH(QWU\3HUPLWWKH$WWHQGDQWVKDOOFRPSOHWHWKHDLUYHQWLODWLRQRIWKH3HUPLW6SDFHDQGWKH(QWUDQWPD\WKHQPDNHHQWU\ (QWU\3HUPLWV(QWU\3HUPLWVVKDOOEHYDOLGIRUWKHSHULRGWKDWHQWU\DQGZRUNRQWKH3HUPLW6SDFHLVLQSURFHVVEXWVKDOOH[SLUHZKHQWKHZRUNFUHZOHDYHVWKHLPPHGLDWHZRUNVLWH IRUOXQFKRUZKDWHYHURWKHUUHDVRQ
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

D 3ULRUWRHQWHULQJWKH6SDFHWKH(QWUDQWVKDOOLQVHUWWKHSUREHRIWKH *DV'HWHFWRUWRLWVIXOOHVWH[WHQVLRQDQGSHUIRUPDWPRVSKHULF
WHVWLQJDWWKDWSRLQWKROGLQJWKHSUREHLQSODFHIRUDWOHDVWWZR
PLQXWHVEHIRUHWDNLQJDUHDGLQJ2QO\XSRQDILQGLQJWKDWWKHUHDUHQRDWPRVSKHULFKD]DUGVWKH(QWUDQWPD\WKHQSURFHHGZLWKWKHHQWU\SURFHGXUH E $WHDFKIRXU

IHHWRIGHSWKRIWKH6SDFHWKH(QWUDQWLVVKDOOKDOW DQGSHUIRUPDGGLWLRQDODWPRVSKHULFWHVWVE\H[WHQGLQJWKHSUREHGRZQZDUGDQGKROGLQJLWLQSODFHIRUDWOHDVWWZR
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
PLQXWHVDPSOLQJSHULRGIRUWKH*DV'HWHFWRUKDVH[SLUHGDQGWKH(QWUDQWVKDOOQRWSURFHHGXQWLOUHFHLYLQJVXFKDQLQGLFDWLRQIURPWKH$WWHQGDQW3HUPLW6SDFHVZLWKDFRQILJXUDWLRQGLIIHUHQWIURPVHZHUPDQKROHVVKDOOKDYHDWPRVSKHULFWHVWLQJSHUIRUPHGLQDPDQQHUVLPLODUWRWKDWGHVFULEHGDERYHEXW PRGLILHGDVQHHGHGE\WKH(QWU\6XSHUYLVRUDQGQRWHGRQWKH(QWU\3HUPLW , 48$/,),&$7,216)253(562163(5)250,1*:25.,1
25$5281'3(50,763$&(6
)ROORZLQJDUHWKHPLQLPXPTXDOLILFDWLRQVIRUSHUVRQVLQYROYHGSUHHQWU\LQYHVWLJDWLRQVDQGDFWXDOHQWU\$OVRLQFOXGHGDUHSHUVRQVZKRDVVLVWLQWKDWZRUNRUGRRWKHUZRUNLQYROYLQJ3HUPLW6SDFHV
(QWU\6XSHUYLVRU7KLVSHUVRQLVVXHV(QWU\3HUPLWVSHUIRUPVSUHHQWU\LQYHVWLJDWLRQVRYHUVHHVSUHHQWU\DWPRVSKHULFWHVWLQJDQGNHHSVVDIHW\UHFRUGVDQGH[SLUHGRUFRPSOHWHG(QWU\3HUPLWV(QWU\6XSHUYLVRUVDOVRFDOLEUDWH*DV'HWHFWRUVXVLQJFDOLEUDWLRQJDVF\OLQGHUV48$/,),&$7,216 &RPSOHWHWUDLQLQJLQWKHUHTXLUHPHQWVIRU&RQILQHG6SDFHFODVVLILFDWLRQDQGHQWU\LVVXDQFHRI(QWU\3HUPLWV3HUPLW6SDFHKD]DUGVXVHRISHUVRQDOSURWHFWLYHHTXLSPHQWDQGSURYLVLRQVRIWKLV3HUPLW5HTXLUHG&RQILQHG6SDFH3URJUDP*RRGNQRZOHGJHRIFRQWHQWRI &)53DUWV
DQGDQ\UHODWHG&$/26+$UHTXLUHPHQWV7UDLQLQJLQRSHUDWLRQDQGFDOLEUDWLRQRI*DV'HWHFWRUV$JLOLW\VXIILFLHQWWRDYRLGUROOLQJVHZHUPDQKROHFRYHUV6KDOOEHFHUWLILHGE\WKH'LUHFWRURI3XEOLF:RUNVTXDUWHUO\DVEHLQJ4XDOLILHG WKURXJKWUDLQLQJSUDFWLFHDQGGHPRQVWUDWLRQ
WRLVVXH(QWU\3HUPLWVDQGFDOLEUDWH*DV'HWHFWRUV (QWUDQW7KLVSHUVRQDFWXDOO\HQWHUVD3HUPLW6SDFHDQGDOVRSHUIRUPVSUHHQWU\DWPRVSKHULFWHVWLQJ:KLOHLQWKH&RQILQHG6SDFHWKH(QWUDQWRSHUDWHVD*DV'HWHFWRUFRPPXQLFDWHV*DV'HWHFWRUUHDGLQJVWRWKH$WWHQGDQWDQGSHUIRUPVWKHWDVNVIRUZKLFKWKH&RQILQHG6SDFHZDVHQWHUHG48$/,),&$7,216 &RPSOHWHWUDLQLQJLQ3HUPLW6SDFHHQWU\DQGKD]DUGVDQGSURYLVLRQVRIWKLV3HUPLW5HTXLUHG&RQILQHG6SDFH3URJUDP7UDLQLQJLQWKHRSHUDWLRQ*DV'HWHFWRUVXVHRISHUVRQDOSURWHFWLYHHTXLSPHQWDQGFRPPXQLFDWLRQZLWKSHUVRQVZRUNLQJDV$WWHQGDQWV$JLOLW\VXIILFLHQWWRDYRLGUROOLQJVHZHUPDQKROHFRYHUVDQGWRFOLPELQWRDQGRXWRIVHZHUPDQKROHVXVLQJYHUWLFDOVWHSVRUDODGGHU(QWUDQWVVKDOODWOHDVWTXDUWHUO\SUDFWLFHPDNLQJHQWU\LQWR3HUPLW6SDFHXVLQJDUHSUHVHQWDWLYH6SDFHWKDWUHSUHVHQWVDW\SLFDORSHQLQJVL]HFRQILJXUDWLRQDQGDFFHVVLELOLW\3HUVRQDOSURWHFWLYHHTXLSPHQWVKDOOEHXVHGIRUWKHSUDFWLFH$WOHDVWPRQWKO\WKH(QWUDQWVKDOOGHPRQVWUDWHFRPSHWHQFHLQXVHRI*DV'HWHFWRUV6KDOOEHFHUWLILHGE\DQ(QWU\6XSHUYLVRUPRQWKO\DVEHLQJ4XDOLILHG WKURXJKWUDLQLQJSUDFWLFHDQGGHPRQVWUDWLRQ
WRZRUNDVDQ(QWUDQW $WWHQGDQW7KLVSHUVRQUHPDLQVGLUHFWO\RXWVLGHWKH3HUPLW6SDFHZKLOHDQ(QWUDQWLVZLWKLQREVHUYHVDQGFRPPXQLFDWHVZLWKWKH(QWUDQWDWWHQGVWRWKHQHHGVRIWKH(QWUDQWZDUQVDZD\DQ\XQLQYROYHGE\VWDQGHUVXVHVFRPPXQLFDWLRQHTXLSPHQWWRFDOOIRUDVVLVWDQFHLIQHHGHGDWWHQGVWRWKHVDIHW\OLQHDWWDFKHGWRWKH(QWUDQWDQGVHWVXSDQGRSHUDWHVUHWULHYDOHTXLSPHQW$WWHQGDQWVDOVR
DVVLVWLQVHWWLQJXSDLUEORZHUVIRUYHQWLODWLRQRIWKH3HUPLW6SDFHDQGYHULILHVSURSHURSHUDWLRQ48$/,),&$7,216 &RPSOHWHWUDLQLQJLQ3HUPLW6SDFHHQWU\DQGKD]DUGV
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
WKURXJKWUDLQLQJSUDFWLFHDQGGHPRQVWUDWLRQ
WRZRUNDVDQ$VVLVWDQW

- '(6,5$%/(75$,1,1*)25$77(1'$176,WLVGHVLUDEOHWKDWSHUVRQVZRUNLQJDVHLWKHU(QWUDQWVRU$WWHQGDQWVKDYHWUDLQLQJLQ)LUVW$LGDQGFDUGLRSXOPRQDU\UHVXVFLWDWLRQ &35
:KHQHYHUIHDVLEOHSHUVRQVDVVLJQHGWRZRUNDV(QWUDQWVRU$WWHQGDQWVVKDOOEHWKRVHSHUVRQVZLWKWKDWWUDLQLQJ. &526675$,1,1*$1':25.$66,*10(1763HUVRQVDVVLJQHGWRZRUNDVHLWKHU(QWUDQWVRUWKH$WWHQGDQWVVKDOOEHWUDLQHGDQGFHUWLILHGWRSHUIRUPHLWKHUWDVN:KHQZRUNLQJLQDVHZHUPDQKROHWKH(QWUDQWDQGWKH$WWHQGDQWVKDOOWUDGHDVVLJQPHQWVDWOHDVWHYHU\ILIWHHQ
PLQXWHVIURPWKHWLPHWKH(QWUDQWUHDFKHVWKHIORRURIWKHPDQKROH:KHQZRUNLQJLQDQ\RWKHU3HUPLW6SDFHWKH(QWUDQWDQGWKH$WWHQGDQWVKDOO WUDGHDVVLJQPHQWVDWOHDVWHYHU\WKLUW\

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
7KH(QWU\6XSHUYLVRUPD\DOVREHZRUNLQJDVRQHRIWKHRWKHUWKUHHDVVLJQPHQWVLQZKLFKFDVHRQO\WKUHH4XDOLILFDWLRQVSHUVRQVDUHUHTXLUHG:KHUHXSZDUGUHWULHYDOZRXOGEHQHFHVVDU\DQGEHFDXVHRIFRQILJXUDWLRQRIWKH&RQILQHG6SDFHRUVLPLODUJRRGUHDVRQUHWULHYDOZRXOGEHPDGHE\PDQXDOOLIWLQJRIWKH
(QWUDQWE\XVHRIRQO\WKHVDIHW\OLQHZLWKRXWXVHRIZLQFKRQHDGGLWLRQDO$VVLVWDQWPXVWEHSUHVHQW:KHUHUHWULHYDOLVWREHPDGHIURPWKHVLGHRIWKH&RQILQHG6SDFHVXFKDVIURPDPDQZD\

RSHQLQJ
DWWKHEDVHRIDGLJHVWHUIROORZLQJLVWKHPLQLPXPPDQQLQJ
2QH(QWUDQW 2QH$WWHQGDQW 2QH$VVLVWDQW 2QH(QWU\6XSHUYLVRUXQWLODIWHULVVXDQFHRIWKH(QWU\3HUPLW 1RWH
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
'$1*(5
3(50,75(48,5('&21),1('63$&(
'2127(17(5

1 )25&('$,59(17,/$7,21
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
D 3RUWDEOHDLUEORZHUVVKDOOEHRIDW\SHWKDWGRHVQRWKDYHDQ H[KDXVWSURGXFLQJVRXUFHRISRZHUVXFKWKDWH[KDXVWIXPHVFDQEHGUDZQLQWRWKHDLUEORZHU3UHIHUDEO\SRUWDEOHDLUEORZHUVVKRXOGEHHOHFWULFDOO\GULYHQ:KHUHDJDVGULYHQHQJLQHLVXVHGWR SRZHUWKHDLUEORZHULWLVPDQGDWRU\WKDWWKHHQJLQHEHVHSDUDWHGIURPWKHDLUEORZHUDQGEHIDUHQRXJKGLVWDQWWRSUHYHQWH[KDXVWIXPHVIURPHQWHULQJWKHDLULQWDNHRIWKHEORZHUXQLW$LUEORZHUV DQGRUH[KDXVWIDQVVKDOOEHVL]HGWRSURYLGHDPLQLPXPRIWZHQW\
WXUQRYHUVRIDLUSHUKRXUIRUWHPSRUDU\
E :KHUHDQDLUGXFWPXVWEHSODFHGWKURXJKDQHQWU\ZD\WKDWLVRI VPDOOGLDPHWHUVXFKDVWKHRSHQLQJWRDVHZHUPDQKROHDVLGHVDGGOHYHQWRUVLPLODUGHYLFHVKRXOGEHXVHGWKDWLVRIVXFKDFRQVWUXFWLRQWKDWUHGXFHVWKHUDGLXVRIWKHDLUGXFWDWWKHSRLQWRI HQWU\VRWKDWLQJUHVVDQGHJUHVVLQQRWXQQHFHVVDULO\UHVWULFWHG F :KHUHDLUGXFWVHQWHUIURPWKHWRSRIDYHUWLFDO&RQILQHG6SDFH VXFKDVDVHZHUPDQKROHWKHDLUGXFWVKDOOH[WHQGWRQHDUWKHERWWRPRIWKH6SDFHVRDVWRFDXVHUHPRYDORIKHDYLHUWKDQDLUJDVHV,QQRFDVHVKDOOWKHUHEHDLUGXFWEHKLJKHUWKDQRQHIRXUWK
WKHGLDPHWHURIWKH&RQILQHG6SDFHRUWZR

IHHWZKLFKHYHULVOHVV,QRUGHUWRREWDLQWKHPD[LPXPEHQHILWRIDLUIORZLQVPDOOGLDPHWHURIWKH&RQILQHG6SDFHV DVKDVEHHQGHWHUPLQHGE\IRUPDOVWXGLHV

WKHGXFWVKDOOEHSODFHGDORQJWKHVLGHRIWKH
&RQILQHG6SDFHUDWKHUWKDQLQWKHFHQWHUDQG

WKHDLUIORZVKDOOEHGLUHFWHGDJDLQVWWKHZDOORIWKH&RQILQHG6SDFH+RZHYHUIRUODUJHGLDPHWHUVSDFHVVXFKDVFODULILHUVRUGLJHVWHUVWKHVHDLUVWXGLHVDQGDLUIORZSDWWHUQVGRQRWDSSO\

)RUFHG$LU9HQWLODWLRQRI6HZHU0DQKROHV:HWZHOOVDQGVLPLODU 6WUXFWXUHV
$WPRVSKHULFWHVWLQJRIWKH&RQILQHG6SDFHVKDOOEHSHUIRUPHGEHIRUHWKHVWDUWRIIRUFHGDLUYHQWLODWLRQDQGDJDLQDIWHUPRUHWKDQIRXU
FKDQJHVRIDLULQWKH&RQILQHG6SDFHDWDUDWHRIWZHQW\
FKDQJHVSHUKRXURUIRUILIWHHQ

PLQXWHVDWWKDWVDPHUDWHZKLFKHYHURFFXUVODVW7KHUHDIWHUDWPRVSKHULFWHVWLQJRIWKH&RQILQHG6SDFHVKDOOEHSHUIRUPHGFRQWLQXRXVO\XQWLOZRUNLQWKH&RQILQHG6SDFHLVILQDOO\GLVFRQWLQXHG )RUFHG$LU9HQWLODWLRQRI(PSW\'LJHVWHUV$WPRVSKHULFWHVWLQJRIWKH&RQILQHG6SDFHVKDOOEHSHUIRUPHGEHIRUHWKHVWDUWIRUFHGDLUYHQWLODWLRQDQGDJDLQDIWHUHLJKW
FKDQJHVRIDLURUWZHQW\IRXU

KRXUVZKLFKHYHURFFXUVILUVW,IWKDWVHFRQGWHVWLQJRIWKHDWPRVSKHUHRIWKH&RQILQHG6SDFHLQGLFDWHVSUHVHQFHRIDKD]DUGRXVJDVWKHQWKHVDPHF\FOHVRIYHQWLODWLRQDQGWHVWLQJVKDOOEHSHUIRUPHGXQWLOWZRFRQVHFXWLYHWHVWVHDFKWDNHQDIWHUDWOHDVWHLJKW
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
DLUFKDQJHVSHUKRXUH[FHSWZKHUHWKHUHLVDILQGLQJRIQRVLJQLILFDQWSRWHQWLDOIRUKD]DUGRXVJDVHVLQZKLFKFDVHWKHUHVKDOOEHDYHQWLODWLRQUDWHRIQROHVVWKDQWHQ
DLUFKDQJHVSHUKRXU,IWKHIRUFHGDLUYHQWLODWLRQLVGLVFRQWLQXHGIRUPRUHWKDQILIWHHQ
PLQXWHV

ZKHWKHUEHFDXVHRIDSRZHURXWDJHRUDQ\RWKHUUHDVRQ
RULIWKHWLPHVSDQLVXQNQRZQDQ\RQHLQWKH&RQILQHG6SDFHVKDOOHYDFXDWHLPPHGLDWHO\DQGWKHDUHDVKDOOEHWUHDWHGDVD3HUPLW6SDFHXQWLOWKHIRUFHGDLUYHQWLODWLRQLVUH
HVWDEOLVKHGDQGDWPRVSKHULFWHVWLQJRIWKH&RQILQHG6SDFHYHULILHVWKHDEVHQFHRIKD]DUGRXVJDVHVIRUWZRFRQVHFXWLYHWHVWVWDNHQDWOHDVWPLQXWHVDSDUW:KHUHDQLPPHGLDWHKD]DUGPD\EHFDXVHGE\DSRZHURXWDJHWKHVSDFHVKDOOFRQVWLWXWHD3HUPLW5HTXLUHG&RQILQHG6SDFHLPPHGLDWHO\XSRQWKHVWDUWRIWKHSRZHURXWDJH 2 35((175<$70263+(5,&7(67,1*7KHSURYLVLRQVRI)('26+$&)5 3DUDJUDSK
F

)

LL

%
RQ3DJHVKDOOEHULJRURXVO\FRPSOLHGZLWKDQGHQIRUFHG7KDW3DUDJUDSKUHDGVDVIROORZV $Q\FRQGLWLRQVPDNLQJLWXQVDIHWRUHPRYHDQHQWUDQFHFRYHUVKDOOEHHOLPLQDWHGEHIRUHWKHFRYHULVUHPRYHG$GGLWLRQDOO\WKHSURYLVLRQVRI)('26+$&)5 3DUDJUDSK
F

)

&
RQ3DJHVKDOOEHULJRURXVO\FRPSOLHGZLWKDQGHQIRUFHG7KDW3DUDJUDSKUHDGVDVIROORZV %HIRUHDQHPSOR\HHHQWHUVWKHVSDFHWKHLQWHUQDODWPRVSKHUHVKDOOEHWHVWHGZLWKDFDOLEUDWHGGLUHFWUHDGLQJLQVWUXPHQWIRUWKHIROORZLQJFRQGLWLRQVLQWKHRUGHUJLYHQ
D 2[\JHQFRQWHQWE )ODPPDEOHJDVHVDQGYDSRUVDQGF 3RWHQWLDOWR[LFDLUFRQWDPLQDQWV 7HVWLQJEHIRUH5HPRYDORIDQ(QWUDQFH&RYHU3ULRUWRWKHUHPRYDORIDQ\HQWUDQFHFRYHUVXFKDVDVHZHUPDQKROHFRYHURUEHIRUHDQ\ZRUNLVSHUIRUPHGLQWKHLPPHGLDWHYLFLQLW\RIWKDWHQWUDQFHFRYHUWHVWLQJVKDOOEHSHUIRUPHGWRGHWHUPLQHGDQ\DWPRVSKHULFFRQWDPLQDQWVWKDWPD\EHFRQWDLQHGXQGHUWKDWHQWUDQFHFRYHU%HFDXVHWKHH[DFWPHWKRGVXVHGLQGHWHUPLQLQJWKHVDPSOHSRLQWZLOOYDU\GHSHQGLQJXSRQWKHFRQILJXUDWLRQRIWKHHQWUDQFHFRYHUIROORZLQJDUHJXLGHOLQHVWKDWVKRXOGEHXVHGWRGHWHUPLQHWKDWVDPSOHSRLQW D ,IWKHUHLVDKROHLQWKHHQWUDQFHFRYHUVXFKDVDSLFNKROHWKHILUVWVDPSOH SRLQWVKRXOGEHMXVWDERYHWKDWKROH7KHSUREHVKRXOGEHFORVHHQRXJKWRGHWHFWJDVHVFRPLQJIURPWKHKROHEXWGLVWDQWHQRXJKQRWWRXQQHFHVVDULO\FRQWDPLQDWHWKHJDVVHQVRU8SRQWKHILQGLQJRIQRKD]DUGRXVJDVHVWKHVHFRQGVDPSOHSRLQWVKRXOGEHREWDLQHGE\SDVVLQJWKHSUREHDSSUR[LPDWHO\VL[
LQFKHVWKURXJKWKHKROHLQWKHHQWUDQFHFRYHUVRDVWRVDPSOHWKHDWPRVSKHUHGLUHFWO\XQGHUWKHFRYHU8SRQDILQGLQJRIQRKD]DUGRXVJDVHVWKHHQWUDQFHFRYHUFDQWKHQEHUHPRYHG
E ,IWKHUHLVQRWDKROHLQWKHHQWUDQFHFRYHUWKHIROORZLQJSURFHGXUHVVKDOO EHIROORZHG

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
WRSHUPLWDGHTXDWHWLPHIRUWKHJDVVHQVRUWRUHDFW8VHRIDWZRPLQXWHHJJWLPHURU VLPLODUGHYLFHLVVXJJHVWHG 5HTXLUHG7HVWLQJ$IWHU5HPRYDORI(QWUDQFH&RYHU,PPHGLDWHO\DIWHUUHPRYDORIWKHHQWUDQFHFRYHUWKHSUREHVKDOOEHLQVHUWHGZHOOLQWRWKH&RQILQHG6SDFH SUHIHUDEO\WRDGHSWKRIIRXUIHHW
DQGWKHDWPRVSKHUHVKDOOEHWHVWHGDJDLQIRUDWPRVSKHULFFRQWDPLQDQWV7KHUHDIWHUWHVWLQJVKDOOEHSHUIRUPHGDWWZHQW\
PLQXWHLQWHUYDOVVRORQJDVZRUNLVEHLQJSHUIRUPHGLQWKHDUHDRIWKHHQWUDQFHKROH+RZHYHUWKDWWZHQW\
PLQXWHWHVWLQJLQWHUYDOVKDOODSSO\RQO\WRVHZHUPDQKROHVFRQWDLQLQJFRQWLQXRXVIORZVRIQRUPDOGRPHVWLFUDZVHZDJH7KDWWLPHLQWHUYDOVKDOOEHXVHGDVDJXLGHOLQHIRUGHWHUPLQLQJWHVWLQJLQWHUYDOVIRURWKHUW\SHVRI&RQILQHG6SDFHV)RULQVWDQFHPHWHULQJYDXOWVRUPDQKROHVIRUGU\VHZHUVPD\QRWUHTXLUHIXUWKHUSUHHQWU\WHVWLQJZKLOHVHZHUPDQKROHVLQWKHYLFLQLW\RIFHUWDLQLQGXVWULHVPD\UHTXLUHPRUHIUHTXHQWWHVWLQJ
,IZRUNLVVXVSHQGHGDWPRVSKHULFWHVWLQJVKDOOEHSHUIRUPHGDJDLQEHIRUHZRUNUHVXPHV,IHQWU\LVWREHPDGHLQWRWKH&RQILQHG6SDFHWHVWLQJVKDOOEHSHUIRUPHGLPPHGLDWHO\SULRUWRVDLGHQWU\ 7HVW5HVXOWVVKDOOEH5HFRUGHG$OOWHVWUHVXOWVVKDOOEHUHFRUGHGRQDDSSURSULDWHIRUPZLWKWKHIRUPWREHUHWDLQHGIRUDSHULRGRIWZR\HDUVDQGXVHGIRUWKHDQQXDOUHYLHZRIWKLV 3HUPLW5HTXLUHG&RQILQHG6SDFH3URJUDP
3 3(50,763$&(5(&/$66,),&$7,21:+(5(12(175<,6
72%(0$'(
7KLVVHFWLRQVKDOODSSO\RQO\WRWKRVHWDVNVVXFKDV79RIVHZHUVURRWFRQWUROVHZHUFOHDQLQJDQGDSSOLFDWLRQRILQVHFWLFLGHVIRUURDFKFRQWUROZKHUHDQHQWUDQFHFRYHU VHZHUPDQKROHFRYHU
LVWREHUHPRYHGEXWZKHUHWKHUHLVQRQHHGRULQWHQWWRPDNHHQWU\LQWRWKH3HUPLW5HTXLUHG&RQILQHG6SDFHWRSHUIRUPWKHWDVN)XUWKHUWKLVVHFWLRQVKDOODSSO\RQO\WR3HUPLW6SDFHVZKHUHSUHHQWU\DWPRVSKHULFWHVWLQJKDVEHHQSHUIRUPHGLQFOXGLQJWHVWLQJRIWKH&RQILQHG6SDFHWRDGHSWKRIIRXUIHHWDIWHUUHPRYDORIWKHHQWUDQFHFRYHUDQGZKHUHSHULRGWHVWLQJLVSHUIRUPHG DQGUHFRUGHG
WKHUHDIWHUDWDSSURSULDWHLQWHUYDOV:KHQHYHUGXULQJWKHSHUIRUPDQFHRIDQ\RWKHUWKHDERYHPHQWLRQHGWDVNVEHFDXVHRIXQDQWLFLSDWHGFRQGLWLRQVLWEHFRPHQHFHVVDU\WRHQWU\WREHPDGHLQWRD3HUPLW5HTXLUHG&RQILQHG6SDFHDOORWKHUSURYLVLRQVRIWKLV3URJUDPVKDOODSSO\DQGQRHQWU\VKDOOEH PDGHXQWLODQ(QWU\3HUPLWLVLVVXHG7KHOLPLWDWLRQVDQGUHTXLUHPHQWVRIWKLV6HFWLRQVKDOOEHULJRURXVO\HQIRUFHG7KHVHSURYLVLRQVVKDOOQRWEHXVHGDVDVXEWHUIXJHIRUDYRLGLQJWKHUHTXLUHPHQWIRUDQ(QWU\3HUPLW 5HJXODWRU\3URYLVLRQV)('26+$&)5

E
GHILQHV(QWU\
DPRQJRWKHUSURYLVLRQV
DVEUHDNLQJRIWKHRIWKHSODQHRIDQRSHQLQJLQWRWKHVSDFHE\DQ\SDUWRIDQHQWUDQW VERG\$OVR&)5

F

L
DOORZVD3HUPLW5HTXLUHG&RQILQHG6SDFHWREHUHFODVVLILHGDVDQRQSHUPLWFRQILQHGVSDFHLIZLWKRXWHQWU\LQWRWKH &RQILQHG6SDFHLWLVGHWHUPLQHGWKDWWKHVSDFHSRVHVQRDFWXDORUSRWHQWLDO DWPRVSKHULFKD]DUGDQGIRUVRORQJDVDQ\RWKHUKD]DUGVDUHHOLPLQDWHGDQG UHPDLQHOLPLQDWHG

3URYLVLRQV 5HTXLUHPHQWVIRU5HFODVVLILFDWLRQV)RUVHZHUPDQKROHVDQGVLPLODUO\FRQILJXUHG3HUPLW6SDFHVZKHUHDWPRVSKHULFWHVWLQJDQGRWKHUVXFKLQYHVWLJDWLRQVRIWKHXSSHUIRXU
IHHWKDVIRXQGWKDWQRDWPRVSKHULFRURWKHUKD]DUGVDUHSUHVHQWDQGWKDWGHWHUPLQDWLRQKDVEHHQPDGHE\DSHUVRQWUDLQHGDQGFHUWLILHGDVEHLQJ4XDOLILHGWRPDNHVXFKDGHWHUPLQDWLRQWKDWSHUVRQPDNLQJWKHLQYHVWLJDWLRQPD\UHFODVVLI\WKDWXSSHUIRXU
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
4 3(50,763$&(5(&/$66,),&$7,21:+(5($1(175<,6
72%(0$'(
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
:LWKLQWKHPHDQLQJRIWKLV3URJUDPGU\VHZHUVFRQVLVWRIQHZVHZHUV\VWHPVWKDWKDYHEHHQFRQVWUXFWHGRUDUHXQGHUFRQVWUXFWLRQZKHUHWKHUHDUHQRFRQQHFWLQJEXLOGLQJVHZHUVDQGRUVRXUFHVRIVHZDJHRUZDWHUGLVFKDUJHV$WPRVSKHULFWHVWLQJVKDOOEHSHUIRUPHGDVSDUWRIWKHUHFODVVLILFDWLRQSURFHVVIRUGU\VHZHUV+RZHYHUIRUVHZHUPDQKROHVZLWKFRQQHFWLQJVHZHUV LQFOXGLQJQHZVHZHUVXQGHUFRQVWUXFWLRQ
QRZRUNHUVKDOOUHPDLQLQWKHPDQKROHIRUPRUHWKDQWKLUW\
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
DWDOOWLPHVH[FHSWZKHUHLWVXVHLVGHWHUPLQHGWREHDQHQGDQJHUPHQW
7KHPDQKROHVKLHOGVKDOOEHRIVXFKDGHVLJQDVWRDOORZLWVXVHZLWKRXWLQWHUIHULQJZLWKHQWU\RUHJUHVVRUZLWKWKHRSHUDWLRQRIUHWULHYDOHTXLSPHQW7KHPDQKROHVKLHOGVKDOODOVREHRIVXFKDGHVLJQWKDWLWFDQQRWIDOOLQXSRQWKH(QWUDQW9 86(2),175,16,&$//<6$)(/,*+7,1*:KHUHDGGLWLRQDOOLJKWLQJPXVWEHSURYLGHGZLWKLQD3HUPLW6SDFHDQGZKHUHWKHUHLVDSRWHQWLDOIRUIODPPDEOHRUH[SORVLYHJDVHVWREHFRPHSUHVHQWWKHOLJKWLQJHTXLSPHQWWKDWLVSURYLGHGVKDOOEHLQWULQVLFDOO\VDIHZLWK8QGHUZULWLQJ/DERUDWRU\ 8/
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
VKRXOGJLYHDOOSRVVLEOHDLGLQWKLVUHJDUG; &2175$&7256:KHQDFRQWUDFWRULVWRSHUIRUPZRUNZKHUHWKHZRUNSODFHFRQWDLQVD3HUPLW5HTXLUHG&RQILQHG6SDFHLWLVWKHUHVSRQVLELOLW\RIWKHHPSOR\HU &LW\
WRGRWKHIROORZLQJ

,QZULWLQJLQIRUPWKHFRQWUDFWRUWKDWWKHZRUNSODFHFRQWDLQVD3HUPLW 5HTXLUHG&RQILQHG6SDFH
V
DQGWKDWHQWU\LVDOORZHGRQO\WKURXJKFRPSOLDQFHZLWKDQ(QWU\3HUPLWSURJUDPPHHWLQJWKHUHTXLUHPHQWVRIWKLV&RQILQHG6SDFH(QWU\3URJUDPRULWVDSSURYHGHTXLYDOHQW ,QZULWLQJDSSULVHWKHFRQWUDFWRURIWKHHOHPHQWVWKDWPDNHWKHVSDFHLQ TXHVWLRQD3HUPLW5HTXLUHG&RQILQHG6SDFHLQFOXGLQJWKHLGHQWLILHGDQGSRWHQWLDOKD]DUGVDQGWKHHPSOR\HU V
&LW\
H[SHULHQFH
,QZULWLQJDSSULVHWKHFRQWUDFWRURIDQ\SUHFDXWLRQVRUSURFHGXUHVWKDW KDYHEHHQLPSOHPHQWHGIRUWKHSURWHFWLRQRIHPSOR\HHVLQRUQHDUWRWKH3HUPLW5HTXLUHG&RQILQHG6SDFHZKHUHWKHFRQWUDFWRU VHPSOR\HHVZLOOEH
ZRUNLQJ

&RRUGLQDWHHQWU\RSHUDWLRQVZLWKWKHFRQWUDFWRUZKHQERWKWKHHPSOR\HU V

&LW\
HPSOR\HHVDQGFRQWUDFWRUSHUVRQQHOZLOOEHZRUNLQJLQRUQHDU3HUPLW5HTXLUHG&RQILQHG6SDFHV 'HYHORSDQGLPSOHPHQWSURFHGXUHVWRFRRUGLQDWHHQWU\RSHUDWLRQVZKHQ HPSOR\HHVRIPRUHWKDQRQHHPSOR\HU
LQFOXGLQJ&LW\
DUHWREHZRUNLQJVLPXOWDQHRXVO\DVDXWKRUL]HG(QWUDQWVLQD3HUPLW5HTXLUHG&RQILQHG6SDFHVRWKDWHPSOR\HHVRIRQHHPSOR\HUGRQRWHQGDQJHUWKHHPSOR\HHVRIDQ\RWKHUHPSOR\HU 'HEULHIWKHFRQWUDFWRUDWWKHFRQFOXVLRQRIWKHHQWU\RSHUDWLRQVUHJDUGLQJ WKHSHUPLWVSDFHSURJUDPIROORZHGDQGUHJDUGLQJDQ\KD]DUGVFRQIURQWHGRUFUHDWHGLQSHUPLWVSDFHVGXULQJWKHHQWU\RSHUDWLRQV 7KHFRQWUDFWRULQDGGLWLRQWRFRPSO\LQJZLWK3HUPLW5HTXLUHG&RQILQHG6SDFHUHTXLUHPHQWVWKDWDSSO\WRDOOHPSOR\HUVVKDOO²ZKHUHHQWU\LQWRD3HUPLW5HTXLUHG&RQILQHG6SDFHLVQHFHVVDU\EHUHVSRQVLEOHIRUWKHIROORZLQJ
2EWDLQDQ\LQIRUPDWLRQUHJDUGLQJSHUPLWVSDFHKD]DUGVDQGHQWU\ RSHUDWLRQVIURPWKHKRVWHPSOR\HU
&LW\

&RRUGLQDWHHQWU\RSHUDWLRQVZLWKWKHKRVWHPSOR\HU
&LW\
ZKHQERWKWKH
KRVWHPSOR\HU
VSHUVRQQHODQGWKRVHRIWKHFRQWUDFWRURURIDQRWKHUFRQWUDFWRUZLOOEHZRUNLQJLQRUQHDU3HUPLW5HTXLUHG&RQILQHG6SDFHV ,QIRUPWKHKRVWHPSOR\HURIWKH3HUPLW5HTXLUHG&RQILQHG6SDFH3URJUDP WKDWWKHFRQWUDFWRUZLOOIROORZDQGRIDQ\KD]DUGVFRQIURQWHGRUFUHDWHGLQ3HUPLW5HTXLUHG&RQILQHG6SDFHVHLWKHUWKURXJKDGHEULHILQJRUGXULQJ WKHHQWU\RSHUDWLRQ
< ,1)(&7,286:$67(6([SRVXUHWRLQIHFWLRXVZDVWHVVKDOOEHLQFOXGHGDVRQHRIWKHSRWHQWLDOKD]DUGVRI3HUPLW6SDFHVWKDWFRQWDLQRUKDYHFRQWDLQHGUDZRUWUHDWHGVHZDJH)RUWKDWUHDVRQSHUVRQQHOZLWKSRWHQWLDOH[SRVXUHWRLQIHFWLRXVZDVWHVVKDOOUHFHLYHVSHFLDOWUDLQLQJLQERWKWKHVSHFLILFKD]DUGVDQGWKHPHDQVRISURWHFWLRQDJDLQVWH[SRVXUH7KDWWUDLQLQJVKDOOEHJLYHQSULRUWRWKHSHUVRQQHOSHUIRUPLQJZRUNLQDQDUHDRISRWHQWLDOH[SRVXUH3HUVRQDOSURWHFWLYHHTXLSPHQWVKDOOEHSURYLGHGDJDLQVWH[SRVXUHWRLQIHFWLRXVZDVWHVDQGWKHXVHRIWKDWHTXLSPHQWVKDOOEHUHTXLUHG3HUVRQDOSURWHFWLYHHTXLSPHQWWKDWVKDOOEHSURYLGHGDQGXVHGRUVKDOOEHSURYLGHGLQFDVHRIQHHGVKDOOEHWKHIROORZLQJ
)LUVW$LGNLWZLWKDSSURSULDWHFRQWHQWV /DWH[RUHTXLYDOHQWGLVSRVDEOHJORYHV

5XEEHUERRWV +HDY\UXEEHUJORYHV 3URWHFWLYHFUHDPV

RSWLRQDO
3RUWDEOHH\HZDVK 'LVLQIHFWDQWVRDSDQGSURYLVLRQVIRUKDQGZDVKLQJRUDOWHUQDWHO\ ZDWHUOHVVKDQGFOHDQHUDQGGLVLQIHFWDQWV
8QLIRUPVDQGODXQGU\VHUYLFH
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
6XGGHQGLVFKDUJHRUUHOHDVHRIODUJHTXDQWLWLHVRIVHZDJHRUZDWHULQD /DUJH%RUHVHZHUOLQHWKDWFRXOGUHVXOWLQWKHHQWUDSPHQWRIDSHUVRQLQ DGRZQVWUHDPPDQKROH*HQHUDOO\D/DUJH%RUHVHZHUOLQHLVFRQVLGHUHGWREHJUHDWHUWKDQWZHQW\IRXU
LQFKHVLQGLDPHWHU

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
)RUWUHDWPHQWSODQWVWUXFWXUHVYHULI\WKDWGLJHVWHUDQGRUQDWXUDOJDVOLQHV KDYHEHHQSK\VLFDOO\GLVFRQQHFWHGDQGEOLQGHGRIIZLWKIODQJHV )RUVHZHUV\VWHPVYHULI\DQGRULQYHVWLJDWHWKHIROORZLQJ
D 3RWHQWLDOLQGXVWULDORUFRPPHUFLDOZDVWHGLVFKDUJHVDQGWKHLU SRWHQWLDOHIIHFWV3OXJRIIVHZHUVZLWKSRWHQWLDOO\WURXEOHVRPHZDVWHV E 'HWHUPLQHWKHERUHRIWKHODUJHVWVHZHUWRGHWHUPLQHZKHWKHURU QRW(QJXOIPHQWSUHFDXWLRQVDSSO\
F 'HWHUPLQHZKHWKHURUQRWWKHVHZDJHIORZLVQRUPDO,IWKHIORZLV ORZHUWKDQQRUPDOLQYHVWLJDWHIXUWKHUWRGHWHUPLQHRUQRWWKHUHLVDQXSVWUHDPVHZHUEORFNDJH ,QVLWXDWLRQVZLWKWKHSRWHQWLDOIRU(QJXOIPHQWUHTXLUHDQDGHTXDWH QXPEHURISHUVRQQHOWRHQVXUHWKDWDQ(QWUDQWFDQEHSURPSWO\UHPRYHGIURPWKH3HUPLW6SDFHLQFDVHRIHPHUJHQF\)RUH[DPSOHIRUODUJHERUHVHZHUVUHTXLUHRQHDGGLWLRQDO$VVLVWDQWVRWKDWWKH(QWUDQWFDQEHTXLFNO\UHPRYHGE\VDIHW\OLQHLIRWKHUUHWULHYDOHTXLSPHQWVKRXOGIDLO
:KHUHDSSOLFDEOHYHULI\WKHSUHVHQFHDQGUHTXLUHWKHXVHRIVSHFLDO HTXLSPHQWVXFKDVVHOIFRQWDLQHGEUHDWKLQJDSSDUDWXVZKHUHWKHUHLVDSRWHQWLDOIRUVXGGHQUHOHDVHRIJDVHV,WVKRXOGEHQRWHGWKDWXVHRIEUHDWKLQJDSSDUDWXVZRXOGEHLQHIIHFWLYHLQWKHIORRGLQJRIDPDQKROHZLWKVHZDJHRUZDWHUDQGPD\LQIDFWFDXVHDJUHDWHUKD]DUGE\LPSHGLQJWKHPRYHPHQWVRIWKH(QWUDQW7KHUHIRUHXVHRIEUHDWKLQJDSSDUDWXVZRXOGEHLQDSSURSULDWHZKHUHIORRGLQJLVWKHRQO\KD]DUG 'HWHUPLQHZKHWKHURUQRWDEXONKHDGLVLQSODFHWKDWFRXOGDIIHFWWKH 3HUPLW6SDFHDQGIXUWKHUGHWHUPLQHZKHWKHURUQRWVHSWLFVHZDJHLVFRQWDLQHGEHKLQGDQ\EXONKHDGWKDWLVIRXQG 2QFHHQWU\KDVEHHQPDGHWKH(QWUDQW
VSULPDU\SURWHFWLRQLVSURYLVLRQIRUDTXLFNUHPRYDOE\UHWULHYDOHTXLSPHQWLIQHHGHG6HFRQGDULO\EUHDWKLQJDSSDUDWXVVKRXOGEHFDUULHGIRUXVHZKHQHYHUWKH*DV'HWHFWRUDODUPLVVRXQGHG,WVKRXOGEHQRWHGWKDWH[WUHPHO\KLJKFRQFHQWUDWLRQVRI+\GURJHQ6XOILGHFDQFDXVHGHDWKLQVHFRQGVDQGDWWKRVHFRQFHQWUDWLRQVFDQQRWEHGHWHFWHGE\WKHVHQVHRIVPHOO)RUWKDWUHDVRQXVHRIWKHEUHDWKLQJDSSDUDWXVVKRXOGEHLPPHGLDWHXSRQWKHVRXQGLQJRIWKH*DV'HWHFWRU VDODUP7KHEUHDWKLQJDSSDUDWXVVKRXOGEHRIWKHW\SHWKDWKDVDWHQ
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
D 7KHJDVGHWHFWRUVKDOOEHRIWKHW\SHWKDWKDVERWKDQDXGLEOHDODUP DQGDYLVXDOUHDGRXW

E 7KHDXGLEOHDODUPVVKDOOEHDFWLYDWHGDWWKHIROORZLQJOHYHOV
2[\JHQFRQFHQWUDWLRQOHVVWKDQ
SHUFHQW )ODPPDEOHJDVRUYDSRURUSHUFHQWRUOHVV/RZHU ([SORVLYH/LPLW
/(/

+\GURJHQ6XOILGHDWRUDERYHSSP &DUERQ0RQR[LGHDWRUDERYHWKDQSSP +RZHYHULIDEURDGUDQJHVHQVRUGHYLFHLVXVHGWKHDODUP SRLQWVKDOOEHDWRUDERYHSSPZKHQFDOLEUDWHGWRWROXHQHUDWKHUWKDQWKHVHWSRLQWVIRU+\GURJHQ6XOILGHDQG&DUERQ0RQR[LGH F 7KHLQVWUXPHQWVKDOOEHRIWKHW\SHWKDWLVFDUULHGRUVWUDSSHGWRWKH (QWUDQWDQGKDVDZDQGRUKRVHWKDWPHDVXUHVWKHDWPRVSKHUHIRXU
IHHWRXWLQWKHGLUHFWLRQRIWUDYHO
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
E 7KHDXGLEOHDODUPVKDOOEHDFWLYDWHGDWIODPPDEOHJDVRUYDSRU SHUFHQW

RUOHVV/RZHU([SORVLYH/LPLW
/(/
+RZHYHULIDEURDGUDQJHVHQVRUGHYLFHLVXVHGWKHDODUPSRLQWVKDOOEHDWRUDERYHSSPZKHQFDOLEUDWHGWRWROXHQH F 7KHLQVWUXPHQWVKDOOEHRIWKHW\SHWKDWKDVDKRVHRUZDQGRID VL]HWKDWFDQEHLQVHUWHGLQWRDVPDOOGLDPHWHUKROHVXFKDVWKHSLFNKROHLQDVHZHUPDQKROHFRYHU
$33(1',;$
3(50,75(48,5('&21),1('63$&(
35&6
'(&,6,21)/2:&+$57

$33(1',;%
35((175<(175<&+(&./,67)25&21),1('63$&((175<3(50,7
$33(1',;&
&21),1('63$&((175<3(50,7

$33(1',;'
+27:25.3(50,7
)LOH1R
$SSURYHG
35((175<(175<&+(&./,67)25
&21),1('63$&((175<3(50,7
'HSDUWPHQW8VH2QO\
&LW\RI:DWHUIRUG(6WUHHW:DWHUIRUG&$
ZZZFLW\RIZDWHUIRUGRUJ
127(
All copies of permit will remain at job site until job is completed. 'DWH 7LPH,VVXHG
6LWH/RFDWLRQDQG'HVFULSWLRQ

35((175<&+(&./,67

&+(&.$//,1+(5(17$1',1752'8&('+$=$5'6 )ODPPDEOH 7HPSHUDWXUH 6SDUNSURGXFLQJRSHUDWLRQV 7R[LF &KHPLFDO$EVRUSWLRQ 6SLOOHG/LTXLGV ,UULWDQW 1RLVH (QJXOIPHQW &RUURVLYH (QWUDSPHQW 5DGLDWLRQ 2[\JHQ'HILFLHQW 9LEUDWLRQ (QWU\DQG([LW/LPLWDWLRQV 2[\JHQ(QULFKHG (OHFWULFDO(TXLSPHQW 0HFKDQLFDO(TXLSPHQW 2WKHU$QWLFLSDWHG+D]DUG'HVFULSWLRQV
,IFRQGLWLRQVDUHLQFRPSOLDQFHZLWKWKHDERYHUHTXLUHPHQWVDQGWKHUHLVQRUHDVRQWREHOLHYHFRQGLWLRQVPD\FKDQJHDGYHUVHO\ WKHQSURFHHGWRWKH3HUPLW6SDFH3UH(QWU\&KHFN/LVW&RPSOHWHDQGSRVWZLWKWKLVSHUPLW,IFRQGLWLRQVDUHQRWLQ FRPSOLDQFHZLWKWKHDERYHUHTXLUHPHQWVRUWKHUHLVUHDVRQWREHOLHYHWKDWFRQGLWLRQVPD\FKDQJHDGYHUVHO\SURFHHGWRWKH(QWU\&KHFN/LVWSRUWLRQRIWKLVSHUPLW 'DWH 7LPH([SLUHV

:RUNWREH3HUIRUPHG
-RE6XSHUYLVRU

(175<&+(&./,67
,WHPVWKDWGRQRWDSSO\HQWHU1$
(QWU\VWDQGE\DQGEDFNXSSHUVRQV
6XFFHVVIXOO\FRPSOHWHGUHTXLUHGWUDLQLQJ" ,VWUDLQLQJFXUUHQW" (TXLSPHQW 'LUHFWUHDGLQJJDVPRQLWRUWHVWHG 6DIHW\KDUQHVVHVDQGOLIHOLQHVIRUHQWU\DQGVWDQGE\SHUVRQV +RLVWLQJHTXLSPHQW 3RZHUHGFRPPXQLFDWLRQV 6&%$¶VIRUHQWU\DQGVWDQGE\SHUVRQV 3URWHFWLYHFORWKLQJ $OOHOHFWULFHTXLSPHQWOLVWHG&ODVV,'LYLVLRQ*URXS'DQG1RQVSDUNLQJWRROV:HKDYHUHYLHZHGWKHZRUNDXWKRUL]HGE\WKLVSHUPLWDQGWKHLQIRUPDWLRQFRQWDLQHGKHUHLQ:ULWWHQLQVWUXFWLRQVDQGVDIHW\SURFHGXUHVKDYHEHHQUHFHLYHGDQGDUHXQGHUVWRRG(QWU\FDQQRWEHDSSURYHGLIDQ\VTXDUHVDUHQRWPDUNHG7KLVSHUPLWLVQRWYDOLGXQOHVVDOODSSURSULDWHLWHPVDUHFRPSOHWHG6XSHUYLVRU$XWKRUL]LQJ(QWU\$OO$ERYH&RQGLWLRQV6DWLVILHG

)LOH1R$SSURYHG /2&.2877$*287 &+(&./,67
'HSDUWPHQW8VH2QO\
&LW\RI:DWHUIRUG(6WUHHW:DWHUIRUG&$
ZZZFLW\RIZDWHUIRUGRUJ
352&('85$/67(36)25$33/<,1*/2&.2877$*287 1RWLI\DOODIIHFWHGHPSOR\HHVDQGFRQWUDFWRUVRILQWHQGHG/RFNRXWWDJRXW 6KXWGRZQHTXLSPHQWE\QRUPDOVWRSSLQJSURFHGXUHV 2SHUDWHWKHVZLWFKYDOYHRURWKHUHQHUJ\LVRODWLQJGHYLFHWRGLVFRQQHFW RULVRODWHWKHHTXLSPHQW /RFNRXWWKHVZLWFKYDOYHRUHQHUJ\LVRODWLQJGHYLFHZLWKWKHDSSURSULDWH ORFN $WWDFKWKHDSSURSULDWHWDJWRWKHORFNLQGLFDWLQJZKRSHUIRUPHGWKH ORFNRXWWKHGDWHDQGWKHUHDVRQIRUWKHORFNRXW 7KHQRUPDORSHUDWLQJFRQWUROVKDYHEHHQRSHUDWHGWRHQVXUHWKHHTXLSPHQW ZLOOQRWRSHUDWH 7KHHTXLSPHQWUHSDLUVRUVHUYLFHSURFHGXUHLVVDIHWRVWDUW 6LJQDWXUHBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 'DWHBBBBBBBBBBBBBBBBBBB352&('85$/67(36)255(67$57,1* 1RWLI\DOODIIHFWHGHPSOR\HHVDQGFRQWUDFWRUVWKDWWKHMRELVFRPSOHWHDQGWKHHTXLSPHQWLV UHDG\IRUWHVWLQJDQGUHWXUQWRVHUYLFH 7KHHTXLSPHQWLVFOHDUDQGDOOORFNRXWORFNVDQGWDJVKDYHEHHQUHPRYHG 7KHHTXLSPHQWKDVEHHQWHVWHGIRUVDIHDQGSURSHURSHUDWLRQ 7KHHTXLSPHQWKDVEHHQSODFHGLQWRWKHQRUPDORSHUDWLRQPRGH 6LJQDWXUHBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 'DWHBBBBBBBBBBBBBBBBBBB,16758&7,216 3ODFHDFKHFNQH[WWRHDFKSURFHGXUHDVLWLVFRPSOHWHG6LJQDQGGDWHHDFKVHFWLRQDVLWLVFRPSOHWHG &,7<2):$7(5)25'
/2&.2877$*287
352&('85(6
&LW\RI:DWHUIRUG
(6WUHHW32%R[

:DWHUIRUG&$

)D[
&LW\RI:DWHUIRUG

/RFNRXW7DJRXW3URFHGXUHV
7DEOHRI&RQWHQWV
$ 3XUSRVH«««««««««««««««««««««««« % 5HVSRQVLELOLW\««««««««««««««««««««« & 3UHSDUDWLRQIRU/RFNRXW««««««««««««««««« ' 6HTXHQFHRI/RFNRXW3URFHGXUH«««««««««««««« ( 5HVWRULQJ(TXLSPHQWWR6HUYLFH«««««««««««««« ) 3URFHGXUH,QYROYLQJPRUHWKDQRQH3HUVRQ««««««««« * 5XOHVIRU8VLQJ/RFN2XW3URFHGXUH«««««««««««« + &RQWUDFWRUV««««««««««««««««««««««« , $SSHQGL[$± /RFNRXW7DJRXW&KHFNOLVW««««««««««« - $SSHQGL[%± /RFNRXW%ORFNRXW$SSOLFDEOH6DIHW\2UGHUV««« /2&.2877$*287352&('85(6

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

$XWKRUL]HG(PSOR\HHVVKDOOEHFHUWDLQDVWRZKLFKVZLWFKYDOYHRURWKHUHQHUJ\LVRODWLQJGHYLFHVWRDSSO\WKHORFNRXWORFNWRVRWKDWWKHHTXLSPHQWWREHZRUNHGRQLVHIIHFWLYHO\GLVDEOHG' 6(48(1&(2)/2&.287352&('85( 1RWLI\DOODIIHFWHGHPSOR\HHVWKDWDORFNRXWLVUHTXLUHGRQVSHFLILHGHTXLSPHQW DQGWKHUHDVRQIRUWKHORFNRXW
,IWKHHTXLSPHQWLVRSHUDWLQJVKXWLWGRZQE\WKHQRUPDOVWRSSLQJSURFHGXUH

GHSUHVVVWRSEXWWRQRSHQWRJJOHVZLWFKHVHWF

2SHUDWHWKHVZLWFKYDOYHRURWKHUHQHUJ\LVRODWLQJGHYLFHVVRWKDWWKHHQHUJ\ VRXUFHV
HOHFWULFDOPHFKDQLFDOK\GUDXOLFHWF
DUHGLVFRQQHFWHGRULVRODWHGIURPWKHHTXLSPHQW6WRUHGHQHUJ\VXFKDVWKDWLQFDSDFLWRUVVSULQJVHOHYDWHGPDFKLQHPHPEHUVURWDWLQJIO\ZKHHOVK\GUDXOLFV\VWHPVDLUDQGJDVVWHDPVRUZDWHUSUHVVXUHHWFPXVWDOVREHGLVVLSDWHGRUUHVWUDLQHGE\PHWKRGVVXFKDVJURXQGLQJUHSRVLWLRQLQJEORFNLQJEOHHGLQJGRZQHWF /RFNRXWHQHUJ\LVRODWLQJGHYLFHVZLWKDVVLJQHGLQGLYLGXDOORFN0DNHVXUHWKDW WKHORFNKDVDWDJVWDWLQJZKRSXWRQWKHORFNGDWHWKHORFNZDVSXWRQDQGWKHUHDVRQWKHORFNZDVSXWRQ,QQRLQVWDQFHVKRXOGDWDJDORQHEHXVHGDVDORFNRXWGHYLFH
$IWHUHQVXULQJWKDWWKHUHDUHQRSHUVRQQHOH[SRVHGWRSRVVLEOHLQMXU\IURP HTXLSPHQWRSHUDWLRQDQGDOOHQHUJ\VRXUFHVKDYHEHHQGLVFRQQHFWHGRSHUDWHWKHSXVKEXWWRQRURWKHUQRUPDORSHUDWLQJFRQWUROVWRPDNHFHUWDLQWKHHTXLSPHQWZLOOQRWRSHUDWH&$87,21 5HWXUQRSHUDWLQJFRQWUROVWRQHXWUDORURIISRVLWLRQDIWHUWKHWHVW 7KHHTXLSPHQWLVQRZORFNHGRXW
( 5(6725,1*(48,30(17726(59,&(
1RWLI\DOO
$IIHFWHG(PSOR\HHVWKDWWKHMRELVFRPSOHWHDQGWKHHTXLSPHQWLV UHDG\IRUWHVWLQJRUQRUPDOVHUYLFH&KHFNWKHHTXLSPHQWDUHDWRVHHWKDWQRRQHLVH[SRVHGWRSRVVLEOHLQMXU\IURPHTXLSPHQWRSHUDWLRQ :KHQHTXLSPHQWLVFOHDUUHPRYHDOOORFNV7KHHQHUJ\LVRODWLQJGHYLFHVPD\QRZ EHRSHUDWHGWRUHVWRUHHQHUJ\WRHTXLSPHQW7HVWWKHHTXLSPHQWIRUSURSHU RSHUDWLRQEHIRUHSODFLQJLQWRVHUYLFH
) 352&('85(,192/9,1*025(7+$121(3(5621,QWKHSUHFHGLQJVWHSVLIPRUHWKDQRQHLQGLYLGXDOLVUHTXLUHGWRORFNRXWHTXLSPHQWHDFKLQGLYLGXDOVKDOOSODFHKLVSHUVRQDOORFNRQWKHHQHUJ\LVRODWLQJGHYLFH V
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

$XWKRUL]HG(PSOR\HHVKDOOKDYHWKHLURZQORFNRXWORFN
VXSSOLHGE\WKH&LW\RQHRUPRUHLIQHFHVVDU\
ZLWKRQHNH\:KHQWKHORFNLVEHLQJXVHGWKH$XWKRUL]HG(PSOR\HHLVUHVSRQVLEOHIRUWKHNH\/RFNVZLOOKDYHDVWDQGDUGORFNRXWWDJDWWDFKHGZLWKWKHGDWHWKHUHDVRQIRUWKHORFNRXWDQGWKHVLJQDWXUHRIWKHSHUVRQDSSO\LQJWKHORFN,QQRLQVWDQFHLVDWDJDQDFFHSWDEOHVXEVWLWXWHIRUDORFN,QDVLWXDWLRQZKHUHWKH

$XWKRUL]HG(PSOR\HHLVQRWDYDLODEOHWRUHPRYHWKHORFNRXWORFNVDQGWDJVEHFDXVHRIDQLOOQHVVHWFDQGWKHHTXLSPHQWPXVWEHSODFHGLQWRVHUYLFHWKHRSHUDWRURQGXW\RU6XSHUYLVRUPXVWDXWKRUL]HWKHSURFHGXUH$XWKRUL]DWLRQWRUHPRYH
WKHORFNRXWORFNVDQGWDJVZLOO21/<EHJLYHQDIWHUYHULI\LQJWKDWWKHHTXLSPHQWLVUHDG\WREHUHWXUQHGWRVHUYLFH+ &2175$&7256&RQWUDFWRUVZRUNLQJRQVLWHPXVWKDYHDJHQHUDOXQGHUVWDQGLQJRI/RFNRXW7DJRXWDQG IROORZWKH'LVWULFW
VSURFHGXUHV
$IIHFWHG(PSOR\HHV²7KRVHHPSOR\HHVZKRVHMREUHTXLUHVWKHPWRRSHUDWHHTXLSPHQW VXEMHFWWR/RFNRXW7DJRXWDQGXVH/RFNRXW7DJRXWSURFHGXUHV

$XWKRUL]HG(PSOR\HHV²7KRVHZKRSK\VLFDOO\ORFNRXWHTXLSPHQWIRUVHUYLFHRUPDLQWHQDQFH
$33(1',;$
/2&.2877$*287&+(&./,67

$33(1',;%
/2&.287%/2&.287$33/,&$%/(6$)(7<25'(56

&,7<2):$7(5)25'
5(&<&/('5(&29(5('25*$1,&
:$67( 352'8&76352&85(0(17
32/,&<
3ROLF\9,
&LW\RI:DWHUIRUG
(6WUHHW32%R[

:DWHUIRUG&$

)D[
-DQXDU\
&LW\RI:DWHUIRUG

5HF\FOHG5HFRYHUHG2UJDQLF:DVWH3URGXFWV
3URFXUHPHQW 3ROLF\
7DEOHRI&RQWHQWV
5(&<&/('5(&29(5('25*$1,&:$67(
352'8&76352&85(0(17 32/,&<
7$%/(2)&217(176
6(&7,21385326( 6(&7,21'(),1,7,216 6(&7,215(&29(5('25*$1,&:$67(352'8&7352&85(0(17 3URFXUHPHQW7DUJHW 5HTXLUHPHQWVIRU-XULVGLFWLRQ'HSDUWPHQWV 5HTXLUHPHQWVIRU'LUHFW6HUYLFH3URYLGHUV 6(&7,215(&<&/('&217(173$3(5352&85(0(17 5HTXLUHPHQWVIRU-XULVGLFWLRQ'HSDUWPHQWV 5HTXLUHPHQWVIRU9HQGRUV 6(&7,2127+(5 5(&<&/(' 0$7(5,$/ 352&85(0(17 6(&7,215(&25'.((3,1*5(63216,%,/,7,(6 6(&7,21())(&7,9('$7(2) 32/,&<
5(&29(5('25*$1,&:$67(352'8&7352&85(0(17
32/,&<
6(&7,21385326($ ,W LVWKH SROLF\ RIWKH&LW\ DSSOLFDEOHWR DOOGHSDUWPHQWVDQG GLYLVLRQVWR LQFRUSRUDWH HQYLURQPHQWDO FRQVLGHUDWLRQV LQFOXGLQJ UHF\FOHGFRQWHQW DQGUHFRYHUHG 2UJDQLF :DVWH SURGXFW XVH LQWR SXUFKDVLQJ SUDFWLFHV DQG SURFXUHPHQW 7KLV 5HFRYHUHG 2UJDQLF :DVWH 3URGXFW 3URFXUHPHQW3ROLF\ 3ROLF\
ZLOOKHOSWKH&LW\WR
3URWHFWDQGFRQVHUYHQDWXUDOUHVRXUFHVZDWHUDQGHQHUJ\ DQG
0LQLPL]H WKH &LW\¶V FRQWULEXWLRQ WR FOLPDWH FKDQJH SROOXWLRQ DQG VROLGZDVWHGLVSRVDO
DQG
&RPSO\ZLWK6WDWHUHTXLUHPHQWVDVFRQWDLQHGLQ&&5'LYLVLRQ &KDSWHU $UWLFOH
6% SURFXUHPHQW UHJXODWLRQV
WRSURFXUHDVSHFLILHGDPRXQWRI5HFRYHUHG2UJDQLF:DVWH3URGXFWVWR VXSSRUW 2UJDQLF:DVWH GLVSRVDO UHGXFWLRQ WDUJHWV DQG PDUNHWV IRU SURGXFWV PDGH IURP UHF\FOHG DQG UHFRYHUHG 2UJDQLF :DVWHPDWHULDOV DQGWR SXUFKDVH 5HF\FOHG&RQWHQW3DSHU3URGXFWV DQG5HF\FOHG&RQWHQW3ULQWLQJDQG:ULWLQJ3DSHU 6(&7,21'(),1,7,216$ ³$QQXDO 5HFRYHUHG 2UJDQLF:DVWH 3URGXFW 3URFXUHPHQW 7DUJHW´ PHDQV WKHDPRXQWRI2UJDQLF:DVWHLQWKHIRUPRID5HFRYHUHG2UJDQLF:DVWH3URGXFW WKDW WKH &LW\ LV UHTXLUHG WR SURFXUH DQQXDOO\ XQGHU &&56HFWLRQ

7KLV WDUJHW VKDOO EH FDOFXODWHG E\ PXOWLSO\LQJ WKH SHUFDSLWDSURFXUHPHQWWDUJHWZKLFKVKDOOEHWRQVRI2UJDQLF:DVWHSHU&DOLIRUQLD UHVLGHQW SHU \HDU WLPHVWKH &LW\¶V UHVLGHQWLDO SRSXODWLRQ XVLQJWKH PRVW UHFHQW DQQXDO GDWD UHSRUWHG E\ WKH &DOLIRUQLD 'HSDUWPHQW RI)LQDQFH $QQXDOO\ &DO5HF\FOH ZLOO SURYLGH QRWLFH WR HDFK &LW\ RI LWV$QQXDO5HFRYHUHG2UJDQLF:DVWH3URGXFW3URFXUHPHQW7DUJHWE\SRVWLQJVXFK LQIRUPDWLRQ RQ &DO5HF\FOH¶V ZHEVLWH DQG SURYLGLQJ ZULWWHQ QRWLFHGLUHFWO\WRWKH&LW\ % ³&RPSRVW´ PHDQV WKH SURGXFW UHVXOWLQJ IURP WKH FRQWUROOHG ELRORJLFDO GHFRPSRVLWLRQRIRUJDQLFVROLGZDVWHVWKDWDUHVRXUFHVHSDUDWHGIURPWKHPXQLFLSDO VROLG ZDVWH VWUHDP RU ZKLFK DUH VHSDUDWHG DW D FHQWUDOL]HGIDFLOLW\RUDVRWKHUZLVHGHILQHGLQ&&56HFWLRQ
D

&RPSRVW HOLJLEOH IRU PHHWLQJ WKH $QQXDO 5HFRYHUHG 2UJDQLF :DVWH3URGXFW3URFXUHPHQW7DUJHWPXVWEHSURGXFHGDWDFRPSRVWDEOHPDWHULDOKDQGOLQJ RSHUDWLRQ RU IDFLOLW\ SHUPLWWHG RU DXWKRUL]HG XQGHU &&5
&KDSWHU RI 'LYLVLRQ RU SURGXFHG DW D ODUJH YROXPH LQYHVVHOGLJHVWLRQIDFLOLW\WKDWFRPSRVWVRQVLWHDVGHILQHGDQGSHUPLWWHGXQGHU&&5 &KDSWHU RI 'LYLVLRQ &RPSRVW VKDOO PHHW WKH 6WDWH¶VFRPSRVWLQJRSHUDWLRQVUHJXODWRU\UHTXLUHPHQWV & ³'LUHFW 6HUYLFH 3URYLGHU´ PHDQV D SHUVRQ FRPSDQ\ DJHQF\ GLVWULFW RU RWKHU HQWLW\ WKDW SURYLGHV D VHUYLFH RU VHUYLFHV WR WKH &LW\ SXUVXDQW WR DFRQWUDFW RU RWKHU ZULWWHQ DJUHHPHQW RU DV RWKHUZLVH GHILQHG LQ &&56HFWLRQ
D

' ³(OHFWULFLW\ 3URFXUHG IURP %LRPDVV &RQYHUVLRQ´ PHDQV HOHFWULFLW\ JHQHUDWHGIURPELRPDVVIDFLOLWLHVWKDW FRQYHUW UHFRYHUHG2UJDQLF:DVWHVXFK DV ZRRG DQG SUXQLQJV IURP WKH PXQLFLSDO VWUHDP LQWR HOHFWULFLW\(OHFWULFLW\ SURFXUHG IURP D ELRPDVV FRQYHUVLRQ IDFLOLW\ PD\ RQO\ FRXQWWRZDUGWKH&LW\¶V$QQXDO5HFRYHUHG2UJDQLF:DVWH3URGXFW3URFXUHPHQW7DUJHW LI WKHIDFLOLW\ UHFHLYHV IHHGVWRFN GLUHFWO\ IURP FHUWDLQ SHUPLWWHG RUDXWKRUL]HG FRPSRVWDEOH PDWHULDO KDQGOLQJ RSHUDWLRQV RU IDFLOLWLHVWUDQVIHUSURFHVVLQJRSHUDWLRQVRUIDFLOLWLHVRUODQGILOOVDVGHVFULEHGLQ&&56HFWLRQ

L

( ³&LW\´DQLQKDELWHGSODFHRIJUHDWHUVL]HSRSXODWLRQRULPSRUWDQFHWKDQD WRZQRUYLOODJH
) ³2UJDQLF:DVWH´PHDQV VROLG ZDVWHV FRQWDLQLQJ PDWHULDO RULJLQDWHGIURP OLYLQJ RUJDQLVPV DQG WKHLU PHWDEROLF ZDVWH SURGXFWV LQFOXGLQJ EXW QRWOLPLWHG WR IRRG \DUG WULPPLQJV RUJDQLF WH[WLOHV DQG FDUSHWV OXPEHUZRRG 3DSHU 3URGXFWV 3ULQWLQJ DQG :ULWLQJ 3DSHU PDQXUH ELRVROLGVGLJHVWDWH DQG VOXGJHV RU DV RWKHUZLVH GHILQHG LQ &&5 6HFWLRQ
D

%LRVROLGV DQG GLJHVWDWH DUH DV GHILQHG LQ &&56HFWLRQ
D

DQG&&56HFWLRQ

D

UHVSHFWLYHO\
* ³3DSHU3URGXFWV´LQFOXGHEXWDUHQRWOLPLWHGWRSDSHUMDQLWRULDOVXSSOLHV FDUWRQVZUDSSLQJSDFNDJLQJILOHIROGHUVKDQJLQJILOHVFRUUXJDWHGER[HVWLVVXH DQG WRZHOLQJ RU DV RWKHUZLVH GHILQHG LQ &&5 6HFWLRQ

D

+ ³3ULQWLQJ DQG :ULWLQJ 3DSHUV´ LQFOXGH EXW DUH QRW OLPLWHG WR FRS\ [HURJUDSKLF ZDWHUPDUN FRWWRQ ILEHU RIIVHW IRUPV FRPSXWHU SULQWRXWSDSHUZKLWHZRYH HQYHORSHVPDQLOD HQYHORSHV ERRNSDSHUQRWH SDGVZULWLQJ WDEOHWV QHZVSULQW DQG RWKHU XQFRDWHG ZULWLQJ SDSHUV SRVWHUVLQGH[ FDUGV FDOHQGDUV EURFKXUHV UHSRUWVPDJD]LQHV DQG SXEOLFDWLRQV RUDVRWKHUZLVHGHILQHGLQ&&56HFWLRQ

D

, ³3URFXUHPHQW RI 5HFRYHUHG 2UJDQLF :DVWH 3URGXFWV´ VKDOO PHDQ SXUFKDVH RU DFTXLVLWLRQ
HJ IUHH GHOLYHU\ RU IUHH GLVWULEXWLRQ IURP DKDXOHURURWKHUHQWLW\YLDDZULWWHQDJUHHPHQWRUFRQWUDFW DQGHQGXVHE\WKH &LW\ RU RWKHUV7KH &LW\¶V$QQXDO 5HFRYHUHG2UJDQLF:DVWH3URGXFW3URFXUHPHQW 7DUJHW FDQ EH IXOILOOHG GLUHFWO\ E\ WKH &LW\ RU E\ 'LUHFW
6HUYLFH 3URYLGHUV WKURXJK ZULWWHQ FRQWUDFWV RU DJUHHPHQWV IRU3URFXUHPHQWRI5HFRYHUHG2UJDQLF:DVWH3URGXFWVDWWKH&LW\¶VEHKHVW - ³3XEOLFO\2ZQHG7UHDWPHQW:RUNV´RU³327:´KDVWKHVDPHPHDQLQJDV LQ6HFWLRQ
U
RI7LWOHRIWKH&RGHRI)HGHUDO5HJXODWLRQV)RUWKHSXUSRVHVRIWKLV3ROLF\WKH327:VKDOOEHWKH³KDXOHU´*LOWRQ6ROLG:DVWH0DQDJHPHQW . ³5HFRYHUHG 2UJDQLF :DVWH 3URGXFWV´ PHDQV SURGXFWV PDGH IURP &DOLIRUQLD ODQGILOOGLYHUWHG UHFRYHUHG 2UJDQLF :DVWH SURFHVVHG DW DSHUPLWWHG RU RWKHUZLVH DXWKRUL]HG RSHUDWLRQ RU IDFLOLW\ RU DV RWKHUZLVHGHILQHG LQ &&5 6HFWLRQ
D

3URGXFWV WKDW FDQ EH XVHG WRPHHWWKH$QQXDO5HFRYHUHG2UJDQLF:DVWH3URGXFW3URFXUHPHQW7DUJHWVKDOOLQFOXGH&RPSRVW6%(OLJLEOH0XOFK5HQHZDEOH*DVIURPDQLQYHVVHO GLJHVWLRQ IDFLOLW\ DQG (OHFWULFLW\ 3URFXUHG IURP %LRPDVV&RQYHUVLRQ DV GHVFULEHG KHUHLQ DQG SURYLGHG WKDW VXFK SURGXFWV PHHWUHTXLUHPHQWVRI&&5'LYLVLRQ&KDSWHU$UWLFOH / ³5HFRUGNHHSLQJ 'HVLJQHH´PHDQVWKH SXEOLF HPSOR\HH DSSRLQWHG E\WKH &LW\0DQDJHURUWKHLUGHVLJQHHWRWUDFNSURFXUHPHQWDQGPDLQWDLQUHFRUGVRI5HFRYHUHG2UJDQLF:DVWH3URGXFWSURFXUHPHQWHIIRUWVERWKE\WKH&LW\DQGRWKHUVLIDSSOLFDEOHDV UHTXLUHGE\&&5'LYLVLRQ&KDSWHU$UWLFOHVDQG 0 5HF\FODELOLW\ PHDQV WKDW WKH 3DSHU 3URGXFWV DQG 3ULQWLQJ DQG :ULWLQJ 3DSHU RIIHUHG RU VROG WR WKH &LW\ DUH HOLJLEOH WR EH ODEHOHG ZLWK DQXQTXDOLILHGUHF\FODEOHODEHODVGHILQHGLQ&RGHRI)HGHUDO5HJXODWLRQV6HFWLRQ

1 ³5HF\FOHG&RQWHQW 3DSHU 3URGXFWV DQG 5HF\FOHG&RQWHQW 3ULQWLQJ DQG :ULWLQJ3DSHU´PHDQVVXFKSURGXFWVWKDWFRQVLVWRIDWOHDVWWKLUW\SHUFHQW
E\ ILEHU ZHLJKW SRVWFRQVXPHU ILEHU FRQVLVWHQW ZLWK WKHUHTXLUHPHQWVRI6HFWLRQVWRDQG6HFWLRQVDQG RIWKH3XEOLF&RQWUDFW&RGHDQGDVDPHQGHG
2 ³5HQHZDEOH*DV´PHDQVJDVGHULYHGIURP2UJDQLF:DVWHWKDWKDVEHHQ GLYHUWHGIURPDODQGILOODQGSURFHVVHGDWDQLQYHVVHOGLJHVWLRQIDFLOLW\WKDWLVSHUPLWWHGRURWKHUZLVHDXWKRUL]HGE\&&5WRUHFRYHU2UJDQLF:DVWHRUDVRWKHUZLVHGHILQHGLQ&&56HFWLRQ
D

3 ³6%´PHDQV6HQDWH%LOORIDSSURYHGE\WKH*RYHUQRURQ 6HSWHPEHU
ZKLFK DGGHG 6HFWLRQV

DQG
WR WKH +HDOWK DQG 6DIHW\ &RGH DQG DGGHG &KDSWHU

FRPPHQFLQJ ZLWK 6HFWLRQ
WR 3DUW RI 'LYLVLRQ RI WKH 3XEOLF5HVRXUFHV &RGH HVWDEOLVKLQJ PHWKDQH HPLVVLRQV UHGXFWLRQ WDUJHWV LQ DVWDWHZLGH HIIRUW WR UHGXFH HPLVVLRQV RI VKRUWOLYHG FOLPDWH SROOXWDQWV DVDPHQGHGVXSSOHPHQWHGVXSHUVHGHGDQGUHSODFHGIURPWLPHWRWLPH
4 ³6%5HJXODWLRQV´RU³6%5HJXODWRU\´PHDQVRUUHIHUVWRIRUWKH SXUSRVHV RI WKLV SROLF\ WKH 6KRUW/LYHG &OLPDWH 3ROOXWDQWV 6/&3

2UJDQLF :DVWH 5HGXFWLRQV UHJXODWLRQV GHYHORSHG E\ &DO5HF\FOH DQGDGRSWHG LQ WKDW FUHDWHG &KDSWHU RI &&5 'LYLVLRQ DQG DPHQGHGSRUWLRQVRIUHJXODWLRQVRI&&5DQG&&5
5 ³6% (OLJLEOH 0XOFK´ PHDQV PXOFK HOLJLEOH WR PHHW WKH $QQXDO 5HFRYHUHG 2UJDQLF :DVWH 3URGXFW 3URFXUHPHQW 7DUJHW SXUVXDQW WR &&5&KDSWHURI'LYLVLRQ7KLV6%(OLJLEOH0XOFKVKDOOPHHWWKHIROORZLQJ FRQGLWLRQV IRU WKH GXUDWLRQ RI WKH DSSOLFDEOH SURFXUHPHQW FRPSOLDQFH\HDUDVVSHFLILHGE\&&56HFWLRQ

I

3URGXFHGDWRQHRIWKHIROORZLQJIDFLOLWLHV

D $ FRPSRVWDEOH PDWHULDO KDQGOLQJ RSHUDWLRQ RU IDFLOLW\ DV GHILQHGLQ&&56HFWLRQ
D

WKDWLVSHUPLWWHGRUDXWKRUL]HG XQGHU &&5 'LYLVLRQ RWKHUWKDQ D FKLSSLQJDQG JULQGLQJ RSHUDWLRQ RU IDFLOLW\ DV GHILQHG LQ &&56HFWLRQ D

E $WUDQVIHUSURFHVVLQJIDFLOLW\RUWUDQVIHUSURFHVVLQJRSHUDWLRQ DV GHILQHG LQ &&5 6HFWLRQV
D

DQG

UHVSHFWLYHO\ WKDW LV SHUPLWWHG RU DXWKRUL]HG XQGHU &&5'LYLVLRQ RU
F $ VROLG ZDVWH ODQGILOO DV GHILQHG LQ 3XEOLF 5HVRXUFHV &RGH 6HFWLRQ
WKDWLVSHUPLWWHGXQGHU&&5'LYLVLRQ
0HHW RU H[FHHG WKH SK\VLFDO FRQWDPLQDWLRQ PD[LPXP PHWDO FRQFHQWUDWLRQDQGSDWKRJHQGHQVLW\VWDQGDUGVIRUODQGDSSOLFDWLRQVSHFLILHG LQ &&5 6HFWLRQV D

$
WKURXJK DVHQIRUFHGE\&LW\&RGH
6 ³6WDWH´PHDQVWKH6WDWHRI&DOLIRUQLD6(&7,215(&29(5('25*$1,&:$67(352'8&7352&85(0(17 3URFXUHPHQW7DUJHW$ 7KH&LW\ZLOODQQXDOO\SURFXUHIRUXVHRUJLYHDZD\DTXDQWLW\RI5HFRYHUHG 2UJDQLF :DVWH 3URGXFWV WKDW PHHWV RU H[FHHGV LWV $QQXDO 5HFRYHUHG2UJDQLF:DVWH 3URGXFW 3URFXUHPHQW 7DUJHW WKURXJK WKH LPSOHPHQWDWLRQRI6HFWLRQVWKURXJKRIWKLV3ROLF\ % 7R EH HOLJLEOH WR PHHW WKH $QQXDO 5HFRYHUHG 2UJDQLF :DVWH 3URGXFW 3URFXUHPHQW7DUJHWSURGXFWVWKDWPD\EHSURFXUHGLQFOXGHWKHIROORZLQJ

SURYLGHGWKDWHDFKSURGXFWPHHWVWKHFULWHULDLQFOXGHGLQWKHLUUHVSHFWLYHGHILQLWLRQLQ6HFWLRQRIWKLV3ROLF\

6%HOLJLEOH&RPSRVW
DVGHILQHGLQ6HFWLRQ%
6%(OLJLEOH0XOFK
DVGHILQHGLQ6HFWLRQ5
5HQHZDEOH *DV
LQ WKH IRUP RI WUDQVSRUWDWLRQ IXHO HOHFWULFLW\ RU KHDW

DVGHILQHGLQ6HFWLRQ2

(OHFWULFLW\ 3URFXUHG IURP %LRPDVV &RQYHUVLRQ
DV GHILQHG LQ
6HFWLRQ'

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

$

WKURXJK

:KHQWKH&LW\XVHV&RPSRVWDQG6%(OLJLEOH0XOFKDQGWKH DSSOLFDWLRQV DUH VXEMHFW WR WKH &LW\¶V:DWHU (IILFLHQW /DQGVFDSLQJ2UGLQDQFH :(/2
SXUVXDQW WR &LW\ &RGH FRPSO\ ZLWKRQH RI WKH IROORZLQJ ZKLFKHYHU LV PRUH VWULQJHQW L
WKH &LW\¶V:(/2 &LW\ &RGH LI PRUH VWULQJHQW WKDQ WKH 6WDWH¶V0RGHO :DWHU (IILFLHQW /DQGVFDSH 2UGLQDQFH 0:(/2
RU
LL
6HFWLRQV

D

%

&

'
DQG
*
RI WKH 6WDWH¶V 0RGHO
:DWHU(IILFLHQW/DQGVFDSH2UGLQDQFH7LWOH'LYLVLRQ&KDSWHURIWKH&&5DVDPHQGHG6HSWHPEHUZKLFK UHTXLUHVWKH VXEPLWWDO RI D ODQGVFDSH GHVLJQ SODQ ZLWK D ³6RLO3UHSDUDWLRQ0XOFKDQG$PHQGPHQWV6HFWLRQ´WRLQFOXGHWKHIROORZLQJ D )RUODQGVFDSHLQVWDOODWLRQV&RPSRVWDWDUDWHRIDPLQLPXP RI FXELF \DUGV SHU VTXDUH IHHW RI SHUPHDEOH DUHDVKDOOEHLQFRUSRUDWHGWRDGHSWKRIVL[
LQFKHVLQWRWKHVRLO6RLOVZLWKJUHDWHUWKDQVL[SHUFHQW
RUJDQLFPDWWHULQWKHWRS VL[

LQFKHV RI VRLO DUH H[HPSWIURP DGGLQJ &RPSRVWDQGWLOOLQJ E $SSO\ D PLQLPXP WKUHH

LQFK OD\HU RI PXOFK RQ DOO

H[SRVHGVRLOVXUIDFHVRISODQWLQJDUHDVH[FHSWLQWXUIDUHDVFUHHSLQJ RU URRWLQJ JURXQGFRYHUV RU GLUHFW VHHGLQJDSSOLFDWLRQV ZKHUH PXOFK LV FRQWUDLQGLFDWHG 7R SURYLGHKDELWDW IRU EHQHILFLDO LQVHFWV DQG RWKHU ZLOGOLIH OHDYH XS WRILYH SHUFHQW
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

$

WKURXJK

.HHS UHFRUGV LQFOXGLQJ LQYRLFHV RU SURRI RI 5HFRYHUHG 2UJDQLF :DVWH 3URGXFW SURFXUHPHQW
HLWKHU WKURXJK SXUFKDVH RUDFTXLVLWLRQ
DQG VXEPLW UHFRUGV WR WKH 5HFRUGNHHSLQJ 'HVLJQHHXSRQFRPSOHWLRQRISURMHFW5HFRUGVVKDOOLQFOXGH D *HQHUDOSURFXUHPHQWUHFRUGVLQFOXGLQJ

L
*HQHUDO GHVFULSWLRQ RI KRZ DQG ZKHUH WKH SURGXFW ZDVXVHGDQGDSSOLHGLIDSSOLFDEOH

LL
6RXUFHRISURGXFW LQFOXGLQJQDPHSK\VLFDO ORFDWLRQ DQG FRQWDFW LQIRUPDWLRQIRU HDFK HQWLW\ RSHUDWLRQ RUIDFLOLW\ IURP ZKRP WKH 5HFRYHUHG 2UJDQLF :DVWH3URGXFWVZHUHSURFXUHG

LLL
7\SHRISURGXFW

LY
4XDQWLW\RIHDFKSURGXFW
DQG
Y
,QYRLFH RU RWKHU UHFRUG GHPRQVWUDWLQJ SXUFKDVH RU SURFXUHPHQW
E )RU &RPSRVW DQG 6% (OLJLEOH 0XOFK SURYLGHG WR UHVLGHQWV WKURXJK JLYHDZD\ HYHQWV RU RWKHU W\SHV RIGLVWULEXWLRQPHWKRGV NHHS UHFRUGV RI WKH &RPSRVW DQG 6%

(OLJLEOH0XOFKSURYLGHGWR UHVLGHQWV5HFRUGV VKDOOEHPDLQWDLQHGDQGVXEPLWWHGWRWKH5HFRUGNHHSLQJ'HVLJQHHLQDFFRUGDQFH ZLWK WKH UHTXLUHPHQWV VSHFLILHG LQ 6HFWLRQ$ F )RU SURFXUHPHQW RI 6% (OLJLEOH 0XOFK PDLQWDLQ DQ XSGDWHGFRS\RIWKHRUGLQDQFHRUHQIRUFHDEOHPHFKDQLVP
V
UHTXLULQJ WKDW WKH PXOFK SURFXUHG E\ WKH &LW\ RU 'LUHFW6HUYLFH 3URYLGHU PHHWV WKH ODQG DSSOLFDWLRQ VWDQGDUGVVSHFLILHGLQ&&56HFWLRQ

DVLWPD\EHDPHQGHGIURPWLPHWRWLPHDVFXUUHQWO\UHIOHFWHGLQ&LW\&RGH :KHQ3URFXUHPHQW RI 5HFRYHUHG2UJDQLF:DVWH3URGXFWV RFFXUV WKURXJK D 'LUHFW 6HUYLFH 3URYLGHU HQWHU LQWR D ZULWWHQ FRQWUDFW RUDJUHHPHQWRUH[HFXWHDSXUFKDVHRUGHUZLWKHQIRUFHDEOHSURYLVLRQVWKDW LQFOXGHV
L
GHILQLWLRQV DQG VSHFLILFDWLRQVIRU6% HOLJLEOHPXOFK DQG FRPSRVW DQG
LL
DQ HQIRUFHPHQW PHFKDQLVP
HJWHUPLQDWLRQ OLTXLGDWHG GDPDJHV
LQ WKH HYHQW WKH 'LUHFW 6HUYLFH3URYLGHULVQRWFRPSOLDQWZLWKWKHUHTXLUHPHQWV % 5HQHZDEOH *DV SURFXUHPHQW
XVHGIRUIXHOIRUWUDQVSRUWDWLRQ HOHFWULFLW\
RUKHDWLQJDSSOLFDWLRQV
)RU5HQHZDEOH*DVSURFXUHPHQWWKH&LW\VKDOO
3URFXUH 5HQHZDEOH*DVPDGHIURP UHFRYHUHG2UJDQLF:DVWHIRU WUDQVSRUWDWLRQ IXHO HOHFWULFLW\ DQG KHDWLQJ DSSOLFDWLRQV WR WKHGHJUHHWKDW LW LVDSSURSULDWH DQGDYDLODEOHIRUWKH &LW\ DQGWRKHOSPHHW WKH $QQXDO 5HFRYHUHG 2UJDQLF:DVWH 3URGXFW 3URFXUHPHQW7DUJHWZKLFKUHTXLUHVFRPSOLDQFHZLWKFULWHULDVSHFLILHGLQ&&56HFWLRQ

.HHS UHFRUGV LQWKH VDPHPDQQHULQGLFDWHG LQ6HFWLRQ$IRU WKH DPRXQW RI 5HQHZDEOH *DV SURFXUHG DQG XVHG E\ WKH-XULVGLFWLRQ LQFOXGLQJ WKH JHQHUDO SURFXUHPHQW UHFRUG LQIRUPDWLRQVSHFLILHG LQ 6HFWLRQ $D DQG VXEPLW UHFRUGV WR WKH5HFRUGNHHSLQJ 'HVLJQHH -XULVGLFWLRQ VKDOO DGGLWLRQDOO\ REWDLQ WKHGRFXPHQWDWLRQ DQG VXEPLW UHFRUGV VSHFLILHG LQ 6HFWLRQ %EHORZLIDSSOLFDEOH ,IWKH&LW\SURFXUHV5HQHZDEOH*DVIURPD327:
D $QQXDOO\ YHULI\ WKDW WKH 5HQHZDEOH *DV IURP WKH 327: FRPSOLHVZLWKWKHUHTXLUHPHQWVVSHFLILHGLQ&&56HFWLRQ

K
LQFOXGLQJ EXW QRW OLPLWHGWRWKH H[FOXVLRQ LQ &&5 6HFWLRQ
D

DQG WKH LWHPV OLVWHG LQ WKLV6HFWLRQ%
E $QQXDOO\ UHFHLYHD UHFRUGIURPWKH327:GRFXPHQWLQJWKH WRQV RI 2UJDQLF :DVWH UHFHLYHG E\ WKH 327: IURP
L
D

FRPSRVWDEOH PDWHULDO KDQGOLQJ RSHUDWLRQ RU IDFLOLW\ DVGHILQHG LQ &&5 6HFWLRQ D

RWKHU WKDQ DFKLSSLQJ DQG JULQGLQJ RSHUDWLRQ RU IDFLOLW\ DV GHILQHG LQ &&5 6HFWLRQ D

WKDW LV SHUPLWWHG RU DXWKRUL]HGXQGHU &&5 'LYLVLRQ
LL
WUDQVIHUSURFHVVLQJ IDFLOLW\ RUWUDQVIHUSURFHVVLQJRSHUDWLRQDVGHILQHGLQ&&56HFWLRQV D

DQG

UHVSHFWLYHO\ WKDW LV SHUPLWWHG RUDXWKRUL]HG XQGHU &&5 'LYLVLRQ RU
LLL
D VROLG ZDVWHODQGILOO DV GHILQHG LQ 3XEOLF 5HVRXUFHV &RGH 6HFWLRQ WKDWLVSHUPLWWHGXQGHU&&5'LYLVLRQ
F $QQXDOO\ UHFHLYH GRFXPHQWDWLRQ IURP WKH 327: RI WKH SHUFHQWDJH RI ELRVROLGV WKDW WKH 327: SURGXFHG DQGWUDQVSRUWHG WR DFWLYLWLHV WKDW FRQVWLWXWH ODQGILOO GLVSRVDO LQRUGHU WR GHPRQVWUDWH WKDW WKH 327: WUDQVSRUWHG OHVV WKDQWZHQW\ILYH SHUFHQW
RI WKH ELRVROLGV LW SURGXFHG WRDFWLYLWLHVWKDWFRQVWLWXWHODQGILOOGLVSRVDO)RUWKHSXUSRVHVRIWKLV 3ROLF\ ODQGILOO GLVSRVDO LV GHILQHG SXUVXDQW WR &&56HFWLRQ
D
DQGLQFOXGHVILQDOGLVSRVLWLRQDWDODQGILOO
XVH RI PDWHULDO DV DOWHUQDWLYH GDLO\ FRYHU RU DOWHUQDWLYHLQWHUPHGLDWH FRYHU DW D ODQGILOO DQG RWKHU GLVSRVLWLRQV QRWOLVWHGLQ&&56HFWLRQ
E
$OWHUQDWLYHGDLO\FRYHURU DOWHUQDWLYH LQWHUPHGLDWH FRYHU DUH GHILQHG LQ &&56HFWLRQV DQGUHVSHFWLYHO\
G $QQXDOO\ UHFHLYH GRFXPHQWDWLRQ WKDW WKH 327: UHFHLYHV YHKLFOHWUDQVSRUWHG VROLG ZDVWH WKDW LV DQ DQDHURELFDOO\GLJHVWLEOHPDWHULDOIRUWKHSXUSRVHRIDQDHURELFFRGLJHVWLRQZLWK327:WUHDWPHQWSODQWZDVWHZDWHUWR GHPRQVWUDWHWKDWWKH 327: PHHWV WKH UHTXLUHPHQW RI &&5 6HFWLRQ

K

H -XULVGLFWLRQVKDOOVXEPLWWKHVHUHFRUGVWRWKH5HFRUGNHHSLQJ 'HVLJQHHRQDQDQQXDOEDVLV
& (OHFWULFLW\ 3URFXUHG IURP %LRPDVV &RQYHUVLRQ )RU (OHFWULFLW\ 3URFXUHG IURP%LRPDVV&RQYHUVLRQ&LW\VKDOO
3URFXUHHOHFWULFLW\IURPDELRPDVV FRQYHUVLRQIDFLOLW\WKDWUHFHLYHV IHHGVWRFNIURP D FRPSRVWLQJIDFLOLW\WUDQVIHUSURFHVVLQJIDFLOLW\ DVROLGZDVWHODQGILOODQGRUUHFHLYHVIHHGVWRFNIURPWKHJHQHUDWRURUHPSOR\HHVRQEHKDOIRIWKHJHQHUDWRURIWKH2UJDQLF:DVWHDQGWRWKH GHJUHH WKDW LW LV DYDLODEOH DQG SUDFWLFDEOH IRU WKH &LW\ DQG WRKHOS PHHW WKH $QQXDO 5HFRYHUHG 2UJDQLF :DVWH 3URGXFW3URFXUHPHQW 7DUJHW ZKLFK UHTXLUHV FRPSOLDQFH ZLWK FULWHULDVSHFLILHGLQ&&56HFWLRQ

0DLQWDLQUHFRUGVDQGFRQGXFWWKHIROORZLQJUHFRUGNHHSLQJDFWLYLWLHV
D .HHS UHFRUGV LQ WKH VDPH PDQQHU LQGLFDWHG LQ 6HFWLRQ $ RIWKLV3ROLF\IRUWKH DPRXQW RI(OHFWULFLW\3URFXUHGIURP %LRPDVV &RQYHUVLRQ IDFLOLWLHV LQFOXGLQJ WKH JHQHUDOSURFXUHPHQW UHFRUG LQIRUPDWLRQ VSHFLILHG LQ 6HFWLRQ$D E 5HFHLYH ZULWWHQ QRWLILFDWLRQ E\ DQ DXWKRUL]HG UHSUHVHQWDWLYH RI WKH ELRPDVV FRQYHUVLRQ IDFLOLW\ FHUWLI\LQJ WKDW ELRPDVVIHHGVWRFNZDV UHFHLYHGIURPDSHUPLWWHG VROLGZDVWHIDFLOLW\LGHQWLILHGLQ&&56HFWLRQ

L

F 3URYLGHWKHVHUHFRUGVWRWKH5HFRUGNHHSLQJ'HVLJQHH 5HTXLUHPHQWVIRU'LUHFW6HUYLFH3URYLGHUV$ 'LUHFW 6HUYLFH 3URYLGHUV RI ODQGVFDSLQJ PDLQWHQDQFH UHQRYDWLRQ DQG FRQVWUXFWLRQVKDOO
8VH &RPSRVW DQG 6% (OLJLEOH 0XOFK DV SUDFWLFDEOH SURGXFHGIURPUHFRYHUHG2UJDQLF:DVWHDVGHILQHGLQ6HFWLRQ% DQG5RIWKLV3ROLF\IRUDOOODQGVFDSLQJUHQRYDWLRQVFRQVWUXFWLRQRU PDLQWHQDQFH SHUIRUPHG IRU WKH &LW\ ZKHQHYHU DYDLODEOH DQGFDSDEOH RI PHHWLQJ TXDOLW\ VWDQGDUGV DQG FULWHULD VSHFLILHG 6%(OLJLEOH0XOFKXVHGIRUODQGDSSOLFDWLRQ VKDOO FRPSO\ZLWK&&5'LYLVLRQ&KDSWHU$UWLFOHDQGPXVWPHHWRUH[FHHG WKH SK\VLFDO FRQWDPLQDWLRQ PD[LPXP PHWDO FRQFHQWUDWLRQ DQGSDWKRJHQ GHQVLW\ VWDQGDUGV VSHFLILHG LQ &&5 6HFWLRQ D

$

WKURXJK

,I'LUHFW6HUYLFH3URYLGHULVVXEMHFWWRWKH&LW\¶V:(/2SXUVXDQWWR &LW\ &RGH FRPSO\ ZLWK RQH RIWKHIROORZLQJ ZKLFKHYHULVPRUHVWULQJHQW
L
WKHORFDOO\DGRSWHG:(/2WKDWLVPRUHVWULQJHQWWKDQWKH6WDWH¶V0:(/2RU LL
6HFWLRQV

D

%

&

'

DQG
*
RIWKH6WDWH¶V0:(/27LWOH'LYLVLRQ&KDSWHURI WKH &&5 DV DPHQGHG 6HSWHPEHU ZKLFK UHTXLUHV WKHVXEPLWWDO RI D ODQGVFDSH GHVLJQ SODQ ZLWK D ³6RLO 3UHSDUDWLRQ0XOFKDQG$PHQGPHQWV6HFWLRQ´WRLQFOXGHWKHIROORZLQJ D )RUODQGVFDSHLQVWDOODWLRQV&RPSRVWDWDUDWHRIDPLQLPXP RI FXELF \DUGV SHU VTXDUH IHHW RI SHUPHDEOH DUHDVKDOOEHLQFRUSRUDWHGWRDGHSWKRIVL[
LQFKHVLQWRWKHVRLO6RLOVZLWKJUHDWHUWKDQVL[SHUFHQW
RUJDQLFPDWWHULQWKHWRS VL[

LQFKHV RI VRLO DUH H[HPSWIURP DGGLQJ &RPSRVWDQGWLOOLQJ E $SSO\ D PLQLPXP WKUHH

LQFK OD\HU RI PXOFK RQ DOO

H[SRVHGVRLOVXUIDFHVRISODQWLQJDUHDVH[FHSWLQWXUIDUHDVFUHHSLQJ RU URRWLQJ JURXQGFRYHUV RU GLUHFW VHHGLQJDSSOLFDWLRQV ZKHUH PXOFK LV FRQWUDLQGLFDWHG 7R SURYLGHKDELWDW IRU EHQHILFLDO LQVHFWV DQG RWKHU ZLOGOLIH OHDYH XS WRILYH SHUFHQW
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

$

WKURXJK

.HHS DQG SURYLGH UHFRUGV RI 3URFXUHPHQW RI 5HFRYHUHG 2UJDQLF :DVWH 3URGXFWV
HLWKHU WKURXJK SXUFKDVH RU DFTXLVLWLRQ
WR5HFRUGNHHSLQJ'HVLJQHHXSRQFRPSOHWLRQRISURMHFWV,QIRUPDWLRQWREHSURYLGHGVKDOOLQFOXGH D *HQHUDOGHVFULSWLRQRIKRZDQGZKHUHWKHSURGXFWZDVXVHG DQGLIDSSOLFDEOHDSSOLHG

E 6RXUFH RI SURGXFW LQFOXGLQJ QDPH SK\VLFDO ORFDWLRQ DQG FRQWDFWLQIRUPDWLRQIRUHDFKHQWLW\RSHUDWLRQRUIDFLOLW\IURPZKRP WKH 5HFRYHUHG 2UJDQLF :DVWH 3URGXFWV ZHUHSURFXUHG
F 7\SHRISURGXFW
G 4XDQWLW\RIHDFKSURGXFW
DQGH ,QYRLFH RU RWKHU UHFRUG GHPRQVWUDWLQJ SXUFKDVH RU SURFXUHPHQW
6(&7,215(&<&/('&217(173$3(5352&85(0(17 5HTXLUHPHQWVIRU-XULVGLFWLRQ'HSDUWPHQWV $ 2SWLRQ
&RPSDUDEOH RU PRUH IDYRUDEOH SULFHV
,I ILWQHVV DQG TXDOLW\ RI
5HF\FOHG&RQWHQW 3DSHU 3URGXFWV DQG 5HF\FOHG&RQWHQW 3ULQWLQJ DQG
:ULWLQJ3DSHUDUHHTXDOWRWKDWRIQRQUHF\FOHGLWHPVDOOGHSDUWPHQWVDQGGLYLVLRQVRIWKH&LW\VKDOOSXUFKDVH5HF\FOHG&RQWHQW3DSHU3URGXFWVDQG5HF\FOHG&RQWHQW3ULQWLQJDQG:ULWLQJ3DSHUWKDWFRQVLVWVRIDWOHDVWWKLUW\SHUFHQW
E\ILEHUZHLJKWSRVWFRQVXPHUILEHUZKHQHYHUDYDLODEOHDWWKH VDPH RU D OHVVHUWRWDO FRVW WKDQ QRQUHF\FOHG LWHPV FRQVLVWHQW ZLWKWKH UHTXLUHPHQWV RI WKH 3XEOLF &RQWUDFWV &RGH 6HFWLRQV WKURXJKDQG6HFWLRQVDQG DVDPHQGHG2SWLRQ
3ULFH 3UHIHUHQFH
,I ILWQHVV DQG TXDOLW\ RI 5HF\FOHG&RQWHQW3DSHU 3URGXFWV DQG 5HF\FOHG&RQWHQW 3ULQWLQJ DQG :ULWLQJ 3DSHU DUHHTXDOWRWKDW RI QRQUHF\FOHG LWHPV DOO GHSDUWPHQWV DQG GLYLVLRQV RI WKH&LW\ VKDOO SXUFKDVH 5HF\FOHG&RQWHQW 3DSHU 3URGXFWV DQG 5HF\FOHG&RQWHQW3ULQWLQJDQG:ULWLQJ3DSHUWKDWFRQVLVWVRIDWOHDVWWKLUW\SHUFHQW
E\ILEHUZHLJKWSRVWFRQVXPHUILEHUZKHQHYHUWKHWRWDOFRVWLVWKHVDPHRUDOHVVHUWRWDOFRVWWKDQQRQUHF\FOHGLWHPVRUZKHQHYHUWKHWRWDOFRVW LVQRPRUHWKDQ SHUFHQW RIWKHWRWDO FRVWIRUWKH QRQUHF\FOHGLWHPV FRQVLVWHQW ZLWK WKH UHTXLUHPHQWV RI WKH 3XEOLF &RQWUDFW &RGH6HFWLRQV WKURXJK DQG 6HFWLRQV DQG DVDPHQGHG2SWLRQ
1R3ULFH3UHIHUHQFH
,IILWQHVVDQGTXDOLW\RI5HF\FOHG&RQWHQW3DSHU 3URGXFWV DQG 5HF\FOHG&RQWHQW 3ULQWLQJ DQG :ULWLQJ 3DSHU DUHHTXDOWRWKDWRIQRQUHF\FOHGLWHPVDOOGHSDUWPHQWVDQGGLYLVLRQVRI7KH&LW\ VKDOO SXUFKDVH 5HF\FOHG&RQWHQW 3DSHU 3URGXFWV DQG 5HF\FOHG&RQWHQW3ULQWLQJ DQG:ULWLQJ3DSHU UDWKHUWKDQ QRQUHF\FOHG LWHPV
WKDWFRQVLVWV RI DW OHDVW WKLUW\ SHUFHQW

E\ ILEHU ZHLJKW SRVWFRQVXPHUILEHU FRQVLVWHQW ZLWK WKH UHTXLUHPHQWV RI WKH 3XEOLF &RQWUDFW &RGH6HFWLRQV WKURXJK DQG 6HFWLRQV DQG DVDPHQGHG
% $OO3DSHU3URGXFWVDQG3ULQWLQJDQG:ULWLQJ3DSHUVKDOOEHHOLJLEOHWREH ODEHOHGZLWKDQXQTXDOLILHGUHF\FODEOHODEHODVGHILQHGLQ7LWOH&RGHRI)HGHUDO5HJXODWLRQV6HFWLRQ

& 3URYLGHUHFRUGVWRWKH5HFRUGNHHSLQJ'HVLJQHHRIDOO3DSHU3URGXFWVDQG 3ULQWLQJ DQG :ULWLQJ 3DSHU SXUFKDVHV ZLWKLQ

GD\V RI WKH SXUFKDVH
ERWK UHF\FOHGFRQWHQW DQG QRQUHF\FOHG FRQWHQW LI DQ\ LV SXUFKDVHG PDGHE\DGLYLVLRQRUGHSDUWPHQWRUHPSOR\HHRIWKH-XULVGLFWLRQ5HFRUGVVKDOO LQFOXGH D FRS\ RI WKH LQYRLFH RU RWKHU GRFXPHQWDWLRQ RI SXUFKDVHZULWWHQ FHUWLILFDWLRQVDV UHTXLUHGLQ6HFWLRQ$IRU UHF\FOHGFRQWHQWSXUFKDVHV YHQGRU QDPH SXUFKDVHU QDPH TXDQWLW\ SXUFKDVHG GDWHSXUFKDVHG DQG UHF\FOHG FRQWHQW LQFOXGLQJ SURGXFWV WKDW FRQWDLQ QRQH
DQG LI QRQ5HF\FOHG&RQWHQW 3DSHU 3URGXFWV DQGRU QRQ5HF\FOHG&RQWHQW3ULQWLQJDQG:ULWLQJ3DSHUDUHSURYLGHGLQFOXGHDGHVFULSWLRQRIZK\ 5HF\FOHG&RQWHQW 3DSHU3URGXFWV DQGRU 5HF\FOHG&RQWHQW3ULQWLQJDQG:ULWLQJ3DSHUZHUHQRWSURYLGHG
5HTXLUHPHQWVIRU9HQGRUV$ $OO YHQGRUV WKDW SURYLGH 3DSHU 3URGXFWV LQFOXGLQJ MDQLWRULDO 3DSHU
3URGXFWV
DQG3ULQWLQJDQG:ULWLQJ3DSHUWRWKH&LW\VKDOO
3URYLGH 5HF\FOHG&RQWHQW 3DSHU 3URGXFWV DQG 5HF\FOHG&RQWHQW 3ULQWLQJ DQG:ULWLQJ 3DSHU WKDW FRQVLVWV RI DW OHDVW WKLUW\ SHUFHQW
E\ILEHUZHLJKWSRVWFRQVXPHUILEHULIILWQHVVDQGTXDOLW\DUHHTXDOWRWKDWRIQRQUHF\FOHGLWHP 2QO\SURYLGH3DSHU3URGXFWVDQG3ULQWLQJDQG:ULWLQJ3DSHUVWKDW PHHW)HGHUDO7UDGH&RPPLVVLRQ5HF\FODELOLW\VWDQGDUGDVGHILQHG LQ7LWOH&RGHRI)HGHUDO5HJXODWLRQV6HFWLRQ

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

3URYLGH UHFRUGV WR WKH 5HFRUGNHHSLQJ 'HVLJQHH RI DOO 3DSHU 3URGXFWV DQG 3ULQWLQJ DQG :ULWLQJ 3DSHU SXUFKDVHG IURP WKHYHQGRUZLWKLQ
GD\VRIWKHSXUFKDVH
ERWKUHF\FOHGFRQWHQWDQGQRQUHF\FOHG FRQWHQW LI DQ\ LV SXUFKDVHG PDGH E\ D GLYLVLRQ RU
GHSDUWPHQWRUHPSOR\HHRIWKH &LW\5HFRUGV VKDOOLQFOXGHD FRS\RI WKH LQYRLFH RU RWKHU GRFXPHQWDWLRQ RI SXUFKDVH ZULWWHQFHUWLILFDWLRQV DV UHTXLUHG LQ 6HFWLRQ $ IRU UHF\FOHGFRQWHQWSXUFKDVHV SXUFKDVHU QDPH TXDQWLW\ SXUFKDVHG GDWH SXUFKDVHGDQG UHF\FOHGFRQWHQW LQFOXGLQJSURGXFWVWKDWFRQWDLQQRQH
DQGLI
QRQ5HF\FOHG&RQWHQW 3DSHU 3URGXFWV DQGRU QRQ 5HF\FOHG&RQWHQW 3ULQWLQJ DQG :ULWLQJ 3DSHU DUH SURYLGHG LQFOXGH DGHVFULSWLRQ RI ZK\ 5HF\FOHG&RQWHQW 3DSHU 3URGXFWV DQGRU5HF\FOHG&RQWHQW3ULQWLQJDQG:ULWLQJ3DSHUZHUHQRWSURYLGHG % $OOYHQGRUVSURYLGLQJSULQWLQJVHUYLFHVWRWKH&LW\YLDDSULQWLQJFRQWUDFWRU ZULWWHQDJUHHPHQWVKDOOXVH3ULQWLQJDQG:ULWLQJ3DSHUWKDWFRQVLVWVRIDWOHDVW WKLUW\ SHUFHQW
E\ ILEHU ZHLJKW SRVWFRQVXPHU ILEHU RU DVDPHQGHGE\3XEOLF&RQWUDFW&RGH6HFWLRQ

6(&7,2127+(55(&<&/('0$7(5,$/352&85(0(17$ $OO 'HSDUWPHQWV'LYLVLRQV VKDOO HYDOXDWH DW OHDVW WKH IROORZLQJ HQYLURQPHQWDOO\ SUHIHUDEOH SURGXFW FDWHJRULHV DQG SXUFKDVH WKHP ZKHQHYHUSUDFWLFDO
5HF\FOHGSODVWLFRXWGRRUZRRGVXEVWLWXWHVLQFOXGLQJSODVWLFOXPEHU EHQFKHVIHQFLQJVLJQVDQGSRVWV
5HF\FOHGFRQWHQWFRQVWUXFWLRQEXLOGLQJDQGPDLQWHQDQFHSURGXFWV LQFOXGLQJSODVWLFOXPEHUFDUSHWWLOHVDQGLQVXODWLRQ 3URGXFWVPDGHIURPUHF\FOHGWLUHUXEEHULQFOXGLQJUXEEHUL]HGDVSKDOW SOD\JURXQGVXUIDFHVDQGIDWLJXHPDWV
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

HOHFWURQLF
RURWKHUSURRIRISXUFKDVHWKDWGHVFULEHWKHSURFXUHPHQWRI 3ULQWLQJ DQG :ULWLQJ 3DSHU DQG 3DSHU 3URGXFWV LQFOXGLQJ WKH YROXPH DQG W\SH RI DOO SDSHU SXUFKDVHV
DQG FRSLHV RIFHUWLILFDWLRQV DQG RWKHU UHTXLUHG YHULILFDWLRQV IURP DOO GHSDUWPHQWV DQGRUGLYLVLRQVSURFXULQJ3DSHU3URGXFWVDQG3ULQWLQJDQG:ULWLQJ3DSHU ZKHWKHU RU QRW WKH\ FRQWDLQ UHF\FOHG FRQWHQW
DQGRUIURP
WKH YHQGRUV SURYLGLQJ 3ULQWLQJ DQG :ULWLQJ 3DSHU DQG 3DSHU3URGXFWV 7KHVH UHFRUGV PXVW EH NHSW DV SDUW RI WKH &LW\¶VGRFXPHQWDWLRQRILWVFRPSOLDQFHZLWK&&56HFWLRQ

&ROOHFWDQGFROODWHFRSLHVRILQYRLFHVRUUHFHLSWVRUGRFXPHQWDWLRQ HYLGHQFLQJ SURFXUHPHQW IURP DOO GHSDUWPHQWV DQG GLYLVLRQVSURFXULQJ 5HFRYHUHG 2UJDQLF :DVWH 3URGXFWV DQG LQYRLFHV RUVLPLODU UHFRUGV IURP YHQGRUVFRQWUDFWRUVRWKHUV SURFXULQJ5HFRYHUHG2UJDQLF:DVWH3URGXFWVRQEHKDOIRIWKH-XULVGLFWLRQWRGHYHORSHYLGHQFHRIWKH&LW\PHHWLQJLWV$QQXDO5HFRYHUHG2UJDQLF
:DVWH 3URGXFW 3URFXUHPHQW 7DUJHW 7KHVH UHFRUGV PXVW EH NHSWDVSDUWRIWKH&LW\¶VGRFXPHQWDWLRQRILWVFRPSOLDQFHZLWK&&56HFWLRQ

&ROOHFWFROODWHDQGPDLQWDLQGRFXPHQWDWLRQVXEPLWWHGE\WKH&LW\ 'LUHFW6HUYLFH3URYLGHUVDQGRUYHQGRUVLQFOXGLQJWKHLQIRUPDWLRQUHSRUWHG WR WKH 5HFRUGNHHSLQJ 'HVLJQHH LQ DFFRUGDQFH ZLWK6HFWLRQV $%& $% &&DQG$ &RPSLOH DQ DQQXDO UHSRUW RQ WKH &LW\¶V GLUHFW SURFXUHPHQW DQG YHQGRURWKHU SURFXUHPHQW RQ EHKDOI RI WKH &LW\ RI 5HFRYHUHG2UJDQLF :DVWH 3URGXFWV 5HF\FOHG&RQWHQW 3DSHU 3URGXFWV DQG5HF\FOHG&RQWHQW 3ULQWLQJ DQG :ULWLQJ 3DSHU FRQVLVWHQW ZLWK WKHUHFRUGNHHSLQJUHTXLUHPHQWVFRQWDLQHGLQ&&56HFWLRQ

IRU WKH $QQXDO 5HFRYHUHG 2UJDQLF :DVWH 3URGXFW 3URFXUHPHQW7DUJHW DQG &&5 6HFWLRQ

IRU 5HF\FOHG&RQWHQW 3DSHU3URGXFWV DQG 5HF\FOHG&RQWHQW 3ULQWLQJ DQG :ULWLQJ 3DSHUSURFXUHPHQW 7KLV UHSRUW VKDOO EH PDGH DYDLODEOH WR WKH &LW\¶VUHVSRQVLEOHHQWLW\IRUFRPSLOLQJWKHDQQXDOUHSRUWWREHVXEPLWWHGWR&DO5HF\FOH ZKLFKZLOOLQFOXGHDGHVFULSWLRQRIFRPSOLDQFHRQPDQ\RWKHU 6% UHJXODWRU\ UHTXLUHPHQWV SXUVXDQW WR &&5'LYLVLRQ &KDSWHU $UWLFOH 7KH SURFXUHPHQW UHSRUW VKDOODOVR EH VKDUHG ZLWK &LW\ &RXQFLO DQQXDOO\ DV HYLGHQFH RILPSOHPHQWLQJWKLV3ROLF\ 6(&7,21())(&7,9('$7(2)32/,&<7KLV3ROLF\VKDOOEHHIIHFWLYHFRPPHQFLQJRQ General Business 6b
January 19, 2023
Lonnie Statzer Public Works Superintendent
City Council Staff Report
Motion: Authorizing Staff to Prepare and Release a Request for Proposal (RFP) Soliciting Contractors for the Project No. 2023-02, “Yosemite Blvd (SR132) Utility Conflict Relocation Project.”
SUMMARY:

Staff is requesting authorization to prepare and release a Request for Proposal (RFP) from contractors for the “Yosemite Blvd (SR132) Utility Conflict Relocation Project.” ANALYSIS:

Caltrans has scheduled an upcoming multimillion-dollar surface improvement project on Yosemite Blvd, (SR132). The project improvements will start at Reinway and continue east to F Street. This project will consist of widening Yosemite Blvd, replacing curbs and sidewalks and adding curbs and sidewalks to areas that did not have them before. Caltrans needs the City to have its existing water and sewer services relocated so that there is no conflict with their upcoming surface improvement project. The proposed project will mitigate sewer and water infrastructure conflicts that have been predetermined to exist by Caltrans Engineering.

FISCAL IMPACT:

The engineer’s estimate for this project is $150,000.

Funding Source Line Code Funding Amount
Water Funds 5075-800-8022 $97,500.00
Sewer Funds 4350-700-8300 $52,500.00
ENVIRONMENTAL REVIEW:

This project is categorically exempted according to Title 14, Chapter 3, Article 19 of the Guidelines for Implementation of the California Environmental Quality Act (CEQA), in accordance with Section 15301 “Existing Facilities.”
ALTERNATIVES:

1. Council could choose not to relocate the water and sewer services in this area and take the chance that Caltrans cancels their multimillion-dollar surface improvements project due to the water and sewer location conflicts.

ATTACHMENTS:
• Exhibit A - Bid Authorization Request Summary
• Exhibit B - Sample Agreement
• Exhibit C - Location Map

BID AUTHORIZATION REQUEST SUMMARY
Project Name: YOSEMITE BLVD. (SR132) UTILITY CONFLICT RELOCATION Proposed Advertisement Date: January 23, 2023
Proposed Bid Date: February 23, 2023
Estimated Construction Schedule: March 27 – May 8, 2023 Engineer’s Estimate: $150,000
Funding Sources:

Project Location:

Various locations along Yosemite Avenue between Reinway and F Street.

Project Description:

This project will include relocating water and sewer services that conflict with Caltran’s upcoming proposed surface improvements.

F Street Pedestrian Improvements C-1

A G R E E M E N T
FOR

PUBLIC IMPROVEMENT
PROJECT NO. 2023‐02
“YOSEMITE BLVD. (SR132) UTILITY CONFLICT RELOCATION”
THIS AGREEMENT, is entered between the CITY OF WATERFORD, a Municipal Corporation, herein called "City", and __________________________________herein called "Contractor", on ___ , 20__.

RECITALS
(a) City hastaken appropriate proceedingsto authorize construction of the publicwork and improvements herein provided, and execution of this Agreement. (b) A notice was duly published for bids for the contract for the improvement hereinafter described.
(c) On __ , 20___, after notice duly given,the City Council ofsaid City awarded the contract for the construction of the improvements hereinafter described to Contractor, which Contractor said Council found to be the lowest responsible bidder for said improvements.
(d) City and Contractor desire to enter into this Agreement for the construction of said improvements.

IT IS AGREED AS FOLLOWS:

1. Scope of Work:

Contractor shall perform the work described briefly as follows:

All work as specified on the Plans and in the Special Provisions, dated JANUARY, 2023 for the project, YOSEMITE BLVD (SR132) UTILIITY CONFLICT RELOCATION.

The aforesaid improvements are further describedin the plans,specifications and technicalrequirementsforsuch project, copies ofwhich are on file in the office of the City Engineer, previously provided to Contractor, and which are incorporated herein by reference as if set forth fully herein.

F Street Pedestrian Improvements C-2

2. The Contract:

The complete contract consists of the following documents: This Agreement, the notice to contractors,the Contractor's accepted proposal, general conditions,special provisions, plans and detailed drawings, faithful performance bond and labor and materials bond and any and all supplemental agreements amending, decreasing, or extending the work contemplated or which may be required to complete the work in a satisfactory and acceptable manner. The Current Edition of the "City of Waterford Standard Specifications and Drawings" is hereby incorporated as a part of the contract.

All rights and obligations of City and Contractor are set forth and described in the contract.

All of the above named documents are intended to cooperate so that any work called for in one and not mentioned in the other, or vice versa, is to be executed the same as if mentioned in all said documents. The documents comprising the complete contract will hereinafter be referred to as the "contract". In case of any dispute, the decision of the City Engineer shall be final.

3. Schedule:

All work shall be performed in accordance with the schedule provided by City Engineer, and under his direction.

4. Equipment & Performance of Work:

Contractor shall furnish all tools, equipment, facilities, labor and materials necessary to perform and complete in good workmanlike manner the work of general construction as called for and in the manner designated in and in strict conformity with the plans and specificationsforsaidwork,which said specifications are entitled, "General Conditions and Special Provisions for “YOSEMITE BLVD. (SR132) UTILITY CONFLICT RELOCATION”
The equipment, apparatus, facilities, labor and material shall be furnished, and said work performed and completed as required in said plans and specifications under the direction and supervision, and subject to the approval, of the City Engineer of said City, or his designated agent.

5. Contract Price:

City shall pay, and Contractor shall accept in full payment for the work above F Street Pedestrian Improvements C-3

agreed to be done, the sum of: _______________________________________ ($XXXX). Said price is determined by the unit prices contained in Contractor's bid.

In the event work is performed or materials furnished in addition to those set forth in Contractor's bid and the specifications herein, said work and materials will be paid for at the unit price therein contained. Said amount shall be paid in installments as hereinafter provided.

6. Time for Performance:

The time fixed for the commencement of such work is ten (10) calendar days after the "Notice to Proceed" has been issued. The work on this project shall be completed on or before forty five (45) calendar days after the date of the "Notice to Proceed".

7. Rights of City to Increase Working Days:

If such work is not completed within such time, the City Council shall have the right to increase the number of working days in the amount it may determine will best serve the interests of the City, and if it desires to increase said number of working days, it shall have the further right to charge the Contractor and deduct from the final payment for the work the actual cost of engineering, inspection, superintendence, and other overhead expenses which are directly chargeable to Contractor, and which accrue during the period of such extension except that the cost ofthe finalservice and preparation ofthe final estimatesshall not be included in such charges; provided, however, that no extension of time for completion of such work shall ever be allowed unless requested by Contractor at least twenty (20) calendar days prior to the time herein fixed for the completion thereof, in writing, with the City Clerk, addressed to the City Council. In this connection, itis understood that the City Clerk shall not transmit any such request to the City Council if not filed within the time herein prescribed.

8. Option of City to Terminate Agreement in Event of Failure to CompleteWork:

If Contractorshall have refused orfailed to prosecute thework, or any severable part thereof, with such diligence aswill insure its completion within the time specified or any extensionsthereof, orshall have failed to complete saidworkwithin such time if Contractor should be adjudged a bankrupt, or if Contractor should make a general assignment for the benefit of Contractor's creditors, or if a receiver should be appointed in the event of Contractor's insolvency, or if Contractor or any subcontractor should violate any of the provisions of this Agreement, the City Engineer or the City Council may give written notice to Contractor and Contractor's sureties of itsintention to terminate this Agreement, and unless within five (5) days after the serving of such notice such violation shall cease and satisfactory F Street Pedestrian Improvements C-4

arrangementsforthe correction thereofmade,this Agreementmay, atthe option of City, upon the expiration of said time, cease and terminate.

9. Liquidated Damages:

In the event Contractor for any reason shall have failed to perform the work herein specifiedwithin the time herein required and to the satisfaction ofthe City Engineer, City may, in lieu of any other of its rights authorized by paragraph 8 of this Agreement, deduct from payments or credits due Contractor after such breach, a sum equal to one thousand ($1,000) Dollars as liquidated damages for each calendar day beyond the date herein provided for the completion of suchwork.

10. Performance by Sureties:

In the event of any termination as herein‐before provided, City shall immediately givewritten notice thereof to Contractor and Contractor'ssureties, and the sureties shall have the right to take over and perform the Agreement; provided, however, that if the sureties within five (5) days after giving them said notice of termination, do not give the Citywritten notice of their intention to take over the performance of the Agreement and do not commence performance thereofwithin five (5) days after notice to the City of such election, City may take over the work and prosecute the same to completion by contract or by any other method it may deem advisable for the account, and at the expense of Contractor and the Suretiesshall be liable to City for any excess cost or damages occasioned City thereby; and, in such event, Citymay, without liability for so doing, take possession of and utilize in completing the work such materials, appliances, plant and other property belonging to Contractor asmay be on the site of the work and necessary therefore.

11. Disputes Pertaining to Payment for Work:

Should any dispute arise respecting the true value of any work done, of any work omitted, or of any extraworkwhich Contractor may be required to do, orrespecting the size of any payment to contractor during the performance of this contract,such dispute shall be decided by the City Engineer, and the decision of the latter shall be final and conclusive.

12. Permits, Compliance with Law:

Contractor shall, at Contractor's expense, obtain all necessary permits and licenses forthe construction of each improvement, give all necessary notices and pay allfees and taxes required by law.

13. Superintendence by Contractor:

F Street Pedestrian Improvements C-5

Contractorshall give personalsuperintendence to thework on said improvement or have a competent foreman or superintendent satisfactory to the City Engineer on the work at all times during progress, with authority to act for him.

14. Inspection by City:

Contractor shall at all times maintain proper facilities and provide safe access for inspection by City to all parts of the work and to the shops wherein the work is in preparation.

15. Extra and/or Additional Work and Changes:

Should City at any time during the progress of said work request any alterations, deviations, additions, or omissionsfromsaid specifications or plans or other contract documents, itshall be atliberty to do so, and the same shall in noway affect or make void the contract, butwill be added to or deducted from the amount ofsaid contract price asthe case may be, by fair and reasonable valuation. Request forsuch change must be made in writing signed by the City Engineer,shall be accompanied by plans and specifications for such propose, shall be accepted in writing by Contractor and Contractor's surety.

16. Inspection and Testing of Materials:

Contractor shall notify City a sufficient time in advance of the manufacture of production materials to be supplied by Contractor under this contract in order that Citymay arrange formill orfactory inspection and testing ofsame, asrequired by the City.

Any materialsshipped by Contractorfromfactory priorto having satisfactorily passed such testing and inspection by City's representative or prior to the receipt of notice from such representative that such testing and inspection will not be required shall not be incorporated on the job of said improvement.

Contractor shall also furnish City, in triplicate, certified copies of all factory and mill test reports upon request.

17. Permits and Care of the Work:

Contractor has examined the site of thework and isfamiliarwith itstopography and condition, location of property lines, easements, building lines, and other physical factors and limitations affecting the performance of this Agreement. Contractor, at Contractor's expense, shall obtain any permission necessary for any operations conducted off the property owned or controlled by City. Contractor shall be responsible for the proper care and protection of all materials delivered and work F Street Pedestrian Improvements C-6

performed until completion and final acceptance.

18. Other Contracts:

City may award other contracts for additional work, and Contractor shall fully cooperate with such other Contractors and carefully fit Contractor's own work to that provided under other contracts as may be directed by the City Engineer.

Contractor shall not commit or permit any act which will interfere with the performance of work by any other Contractor.

19. Payments to Contractor:

Payments are to be made to the Contractor in accordance with the provisions of Section 9 of the General Conditions of said specifications in legally executed and regularly issued warrants of the City, drawn on the appropriate fund or funds as required by law and order of the City Council thereof.

20. Contract Security:

Concurrently with the execution hereof, Contractor shall furnish on the forms provided (1) a surety bond in an amount equal to at least one hundred percent (100%) ofthe contract price assecurity forthe faithful performance ofthis contract; and (2) a separate surety bond in an amount equal to at least one hundred percent (100%) of the contract price as security for the payment of all persons performing labor and furnishing materials in connection with this contract. Sureties on each of said bonds thereof shall be satisfactory to the City Manager.

21. Indemnity:

Contractor shall indemnify and hold harmless City, its officers, employees, agents and volunteers from and against all liability, loss, damage, expense, and cost (including, without limitation, reasonable legal counsel fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with Contractor’s negligence, recklessness, or willful misconduct in the performance of work hereunder, or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage caused by the active negligence, sole negligence or willful misconduct of the City. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Agreement.

22. Contractor's Insurance:
(a) Minimum Limits of Insurance
(1) General Liability
F Street Pedestrian Improvements C-7

Contractor shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than two million dollars ($2,000,000) per occurrence for bodily injury, personal injury, and property damage, including without limitation, blanket contractual liability and coverage for explosion, collapse and underground property damage hazards. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. A combination of a general liability policy and excess liability policies may be utilized to achieve these limits. Contractor’s general liability policies shall be primary and shall not seek contribution from the City’s coverage, and be endorsed using Insurance Services Office form CG 20 10 to provide that City and its officers, officials, employees, and agents shall be additional insureds under such policies. An endorsement providing completed operations to the additional insured, ISO form CG 20 37, is also required.
(2) Auto Liability
Contractor shall provide auto liability coverage for owned, nonowned, and hired autos using ISO Business Auto Coverage form CA 00 01, or the exact equivalent, with a limit of no less than two million dollars ($2,000,000) per accident.
(3) Workers’ Compensation
Contractor shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance with limits of at least one million dollars ($1,000,000). Contractor shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of City, its officers, agents, employees, and volunteers.
(b) Deductibles and Self‐Insured Retention:

Any deductible or self‐insured retention must be declared to and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such deductible for self‐insured retention as respects the City, its officers, officials, employees, and volunteers; or the Contractor shall post a security (including but not limited to cash, letter of credit, etc.) guaranteeing payment of losses and related investigations, claim administration, and defense expenses.
(c) Other Insurance Provisions
The policies are to contain, or be endorsed to contain, the following provisions:

F Street Pedestrian Improvements C-8

(1) General Liability and Automobile Liability Coverage (a) Any failure to complywith reporting provisions ofthe policies shall not affect coverage provided to the City, its officers, officials, employees, or volunteers.
(b) The Contractor's insurance shall apply separately to each insured against whom claim is made for suit is brought, except with respect to the limits of the insurer'sliability. (2) All Coverage:
(a) Each insurance policy required by this section shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City.
(b) The Contractor shall require the subcontractors, if any, to take out and maintain similar Commercial General Liability and Property Damage Insurance.
(c) In case any of the work under this Contract is to be performed on, or at, the site of the project by the
subcontractor, the contractor shall take out and maintain such contractor's Contingent or Protective Insurance as will protect him, the Owner, and the Engineer from damage
claims arising from the operations of any subcontractor. (d) Acceptability of Insurer:

Insurance is to be placed with insurers with a Best's rating of no less than A:VII.

In the event the form of any policy or certificate, or the amount of the insurance or the companies writing same are not satisfactory to the City, the Contractor shall furnish other policies or certificatesin form and amount, andwith companiessatisfactory to the City. The Contractor shall not cause any policies to be canceled or permit it to lapse, and all policies shall include a clause to the effect that the policy or certificate shall not be subject to cancellation or to a reduction in the required limits of liability or amounts of insurance until notice has been mailed to the City statingwhen, notlessthan ten (10) daysthereafter,such F Street Pedestrian Improvements C-9

cancellation or reduction shall be effective. All certificates of insurance, authenticated by the proper officer of the insurer, shall state in particular those insured, the extent of the insurance, the location and operations to which the insurance applies, the expiration date, and the above‐mentioned notice of cancellation clause.

The Contractor shall furnish to the City at the date of delivering the signed contracts and bonds, certificates or riders duly executed on behalf of the surety company, certifying asto the amounts of insurance carried, and providing for the coverage therein of the City, its officers, agents, and employees, within all risks arising out of the project.

23. Proof of Carriage of Insurance:

Contractorshall furnish City on City Forms, through the City Engineer, concurrentlywith the execution hereof,with satisfactory proof of carriage ofthe insurance required, andthateach carrier shall give City at least thirty (30) days prior notice of the cancellation of any policy during the effective period of this contract.

24. Wages & Hours of Employment:

In the performance of this contract, eight (8) hoursshall be the maximum hours of labor on any calendar day, and the minimum wages of compensation of persons performing labor in the execution ofthis Agreementshall be the current prevailing scale ofwages determinedby the U.S. Secretary of Labor for the community and on file with the City Engineer.

The Contractorshall forfeit as penalty to the City, Twenty‐FiveDollars($25)to be paid to the City of Waterford for eachworkman employed in the execution of this Agreement by himor by any subcontractor, for each calendar day during which any workman is required or permitted to labor more than eight (8) hours, in violation of provisions of Article 3, Chapter 1, Part 7, a Division 2, of the Labor Code of the State of California, and all amendments thereto.

25. Emergency ‐ Additional Time for Performance ‐ Procurement of Materials:

If, because of war or other declared national emergency, the Federal or State Government restricts,regulates, or controlsthe procurement and allocation oflaborormaterials,or both, and if solely because of said restrictions, regulations or controls, contractor is through no fault ofthe contractor, unable to performthis Agreement, orthework isthereby suspended or delayed, any of the following steps may be taken.
(a) City may, pursuant to resolution of the Council, grant Contractor additional time for the performance of this Agreement, sufficient to compensate in time, for delay or suspension.

To qualify for such extension in time, Contractor within ten (10) days of Contractor's discovering such inability to perform,shall notify City Engineerinwriting thereof, and F Street Pedestrian Improvements C-10

give specific reasons therefore; City Engineer shall thereupon have sixty (60) days within which to procure such needed materials or labor as is specified in this Agreement, or permitsubstitution, or provide for changesin thework in accordance with other provisions of this Agreement. Substituted materials, or changes in the work, or both, shall be ordered in writing by City Engineer, and the concurrenceof the Council shall not be necessary. All reasonable expenses of such procurement incurred by the City Engineer shall be defrayed by the Contractor; or (b) If such materials or labor cannot be procured through legitimate channels within sixty (60) days after the filing of the aforesaid notice, either party may, upon thirty (30) days' written notice to the other, terminate this Agreement. In such event, Contractor shall be compensated for all work executed upon a unit basis in proportion to the amount of the work completed, or upon a cost‐plus ten percent (10%) basis, whichever is the lesser. Materials on the ground, in process of fabrication or in route upon the date of notice of termination specially ordered for the project andwhich cannot be utilized by Contractor,shall be compensated for by City at cost, including freight, provided the Contractorshall take allsteps possible to minimize this obligation; or
(c) City Council, by resolution,may suspend this Agreement untilthe cause ofinability to perform is removed but for a period of not to exceed sixty (60) days.

If this Agreement is not canceled, and the inability of Contractor to perform continues without fault on Contractor's part, beyond the time during which the Agreement may have been suspended, as hereinabove provided, City Council may further suspend this Agreement, or either party hereto may, without incurring any liability, electtodeclare this Agreementterminated upon the ground ofimpossibility of performance. In the event City declares this Agreement terminated, such declaration shall be authorized by the CityCouncil by resolution, and Contractorshall be notified in writing thereof within five (5) days after the adoption of such resolution. Upon such termination, Contractor shall be entitled to proportionate compensation atthe Agreementrate forsuch portion ofthe Agreement asmay have been performed, or
(d) City may terminate this Agreement, in which case Contractor shall be entitled to proportionate compensation atthe agreed rate forsuch portion oftheAgreement as may have been performed. Such termination shall be authorized by resolution ofthe Council. Notice thereof shall be forthwith given in writing to Contractor, and this Agreement shall be terminated upon receipt by Contractor of such notice. In the event of the termination provided in thissub‐paragraph (d), none of the covenants, conditions or provisions hereofshall apply to thework not performed, and City shall be liable to Contractor for the proportionate compensation last herein mentioned.

F Street Pedestrian Improvements C-11

26. Provisions Cumulative:

The provisions of this Agreement are cumulative, and in addition to and not in limitation of, any other rights or remedies available to City.

27. Notices:

All notices shall be in writing and delivered in person or transmitted by certified mail, postage prepaid.

Notices required to be given to City shall be addressed as follows:

CITY MANAGER, CITY OF WATERFORD, P. O. BOX 199, WATERFORD, CA 95386 Notices required to be given to Contractor shall be addressed as follows:
_
Notices required to be given sureties of Contractor shall be addressed as follows:

28. Interpretation:

As used herein, any gender includes each other gender, the singular includes the plural and vice versa.

29. Anti‐Trust Claims:

The Contractor or subcontractor offers and agrees to assign to the City all rights, title and interest to any causes of action under Section Four of the Clayton Act and the Cartwright Act concerning anti‐trust claims.

INWITNESSWHEREOF,fouridentical counterpartsofthisAgreement, consisting of a totalof 12 pages, each of which counterparts shall for all purposes be deemed an original of said Agreement, have been duly executed by the parties hereinabove named, on the day and year first hereinabove written.

F Street Pedestrian Improvements C-12

(Attach Contractor's
Notary Seal here)
By:

Contractor
Address:

Phone:

CITY OF WATERFORD,

A MUNICIPAL CORPORATION
By:

Michael G. Pitcock, City Manager
APPROVED AS TO FORM:

By: _
Federal Tax ID #
OR
Social Security #
Corbett Browning, City Attorney
APPROVED AS TO SUFFICIENCY:

MCR ENGINEERING
By: _
Rob Marler, City Engineer
ATTEST:

By:

Patricia Krause, City Clerk

Informational Items 8
January 19, 2023
Patricia Krause, City Clerk / Administrative Services Director City Council Staff Report
Informational Items.

SUMMARY:

Items included in this section provide City Council with updates on business not requiring a full report.

FISCAL IMPACT:

N/A
ANALYSIS:

All items under this category are considered for informational purpose only.

ENVIRONMENTAL REVIEW:

N/A
ALTERNATIVES:

N/A
ATTACHMENTS:
8a: City Project List
Streets
Name Owner Priority Estimated Cost Update
Yosemite Ave. Pedestrian Project (CalTrans) Michael Pitcock Lonnie Statzer High $6,000,000 (SHOPP) Caltrans is lead agency.

H & I Streets Rehabilitation Michael Pitcock
Lonnie Statzer High $500,000 (CDBG) Complete
F Street Overlay Michael Pitcock
Lonnie Statzer High $1,200,000 (Measure L) In Design.
2023 Slurry and Cape Seals Michael Pitcock
Lonnie Statzer High $500,000 (Measure L) In Planning.

F Street Improvements at Western Michael Pitcock
Lonnie Statzer High $300,000 (STBG and CMAQ) In Construction Western Pedestrian Improvements Michael Pitcock
Lonnie Statzer High $300,000 (CDBG) IN NEPA Environmental Review.

Dorsey and Pecan Pedestrian and Roadway Improvements Michael Pitcock Lonnie Statzer High $300,000 (CDBG) IN NEPA Environmental Review.

Yosemite at Pasadena Signal Improvements Michael Pitcock Lonnie Statzer High $600,000 (CMAQ) In Design.

Skyline Road Improvements Michael Pitcock
Lonnie Statzer High $450,000 (STBG) In Design.

Housing Development
Name Owner Priority Estimated Cost Update
Pecan / Pasadena Subdivision Michael Pitcock High NA Homes in Construction. All homes sold.

Bentley Estates Michael Pitcock High NA Tentative Map Approved. Waiting on Developer.

Economic Development
Name Owner Priority Estimated Cost Update
F St and Yosemite Redevelopment (Burned Building) Michael Pitcock High N/A Council Approved Project October 20, 2022 City Projects
Facilities / Property
Name Owner Priority Estimated Cost Update
ADA Transition Plan Implementation Lonnie Statzer Low Varies Ongoing 109 E St. Public Works Shop Sale Lonnie Statzer Low N/A For sale Local Hazardous Mitigation Plan Update Lonnie Statzer Low N/A Draft document has been reviewed.

Council Chambers Equipment Upgrade Patricia Krause High $52,000 In Construction Public Safety
Name Owner Priority Estimated Cost Update
License Plate Reader Program Michael Pitcock High
$10,000 up front and $3,300
monthly for maintenance and
monitoring.

Cameras are operational in all locations but
Skyline.

Utilities
Name Owner Priority Estimated Cost Update
WWTP Biosolids Screening Upgrade - Self Help Enterprises Grant
Michael Pitcock
Lonnie Statzer High $500,000 Unfunded Grant Application submitted.

Water System Consolidation - Hickman Michael Pitcock
Lonnie Statzer High $3,000,000 Unfunded Grant Application submitted.

Tim Bell Water and Sewer Extension to Vineyard Michael Pitcock Lonnie Statzer High $2,500,000 (ARPA) In Design.

Parks and Trails
Name Owner Priority Estimated Cost Update
Triangle Parcel - Neighborhood Park Lonnie Statzer High $133,000 Park Impact Fees On hold as funding for Dog Park is higher prioroity
S. Reinway Sports Complex Lonnie Statzer Low Unfunded On Hold Dog Park (Prop 68 Per Capita Grant) Lonnie Statzer High $250,000 Grant and Park Impact Fees In Construction
Beard Park Improvements (Prop 68 Competitive Grant) Lonnie Statzer High $1,000,000 Million Unfunded Grant Denied. Waiting to see if another cycle to apply is available.

Community Center Remodel Michael Pitcock
Lonnie Statzer High $800,000 (General Fund) In Design
Other Projects
Name Owner Priority Estimated Cost Update