Amarex KRT DIN 40 to 300 - San Felipe

7/29/2019 Amarex KRT DIN 40 to 300 - San Felipe

1/86

6XEPHUVLEOH0RWRU3XPS

$PDUH[.573XPS6L]HV'1WR'10RWRU6L]HVSROHWRSROHVWRSROHWR

SROHWR,QVWDOODWLRQ2SHUDWLQJ0DQXDO

0DW1R


2/86

/HJDOLQIRUPDWLRQ&RS\ULJKW

,QVWDOODWLRQ2SHUDWLQJ0DQXDO$PDUH[.57

2ULJLQDORSHUDWLQJPDQXDO

.6%$NWLHQJHVHOOVFKDIW

$OOULJKWVUHVHUYHG7KHFRQWHQWVSURYLGHGKHUHLQPXVWQHLWKHUEHGLVWULEXWHGFRSLHGUHSURGXFHGHGLWHGRUSURFHVVHGIRUDQ\RWKHUSXUSRVHQRURWKHUZLVHWUDQVPLWWHGSXEOLVKHGRUPDGHDYDLODEOHWRDWKLUGSDUW\ZLWKRXW.6%VH[SUHVVZULWWHQFRQVHQW

6XEMHFWWRWHFKQLFDOPRGLILFDWLRQZLWKRXWSULRUQRWLFH

.6%$NWLHQJHVHOOVFKDIW)UDQNHQWKDO


3/86

&RQWHQWV*ORVVDU\

*HQHUDO 3ULQFLSOHV

,QVWDOODWLRQRISDUWO\FRPSOHWHGPDFKLQHU\

7DUJHWJURXS

2WKHUDSSOLFDEOHGRFXPHQWV

6\PEROV

6DIHW\ .H\WRVDIHW\V\PEROVPDUNLQJV

*HQHUDO

,QWHQGHGXVH

3HUVRQQHOTXDOLILFDWLRQDQGWUDLQLQJ

&RQVHTXHQFHVDQGULVNVFDXVHGE\QRQFRPSOLDQFHZLWKWKHVHRSHUDWLQJLQVWUXFWLRQV

6DIHW\DZDUHQHVV

6DIHW\LQIRUPDWLRQIRUWKHRSHUDWRUXVHU

6DIHW\LQIRUPDWLRQIRUPDLQWHQDQFHLQVSHFWLRQDQGLQVWDOODWLRQZRUN

8QDXWKRULVHGPRGHVRIRSHUDWLRQ

([SORVLRQSURWHFWLRQ

7UDQVSRUW7HPSRUDU\6WRUDJH'LVSRVDO &KHFNLQJWKHFRQGLWLRQXSRQGHOLYHU\

7UDQVSRUW

6WRUDJH3UHVHUYDWLRQ

5HWXUQWRVXSSOLHU

'LVSRVDO

'HVFULSWLRQRIWKH3XPS6HW *HQHUDOGHVFULSWLRQ

'HVLJQDWLRQ

1DPHSODWH

'HVLJQGHWDLOV 7\SHVRILQVWDOODWLRQ

&RQILJXUDWLRQDQGIXQFWLRQ

6FRSHRIVXSSO\

'LPHQVLRQVDQGZHLJKWV

,QVWDOODWLRQDW6LWH 6DIHW\UHJXODWLRQV

&KHFNVWREHFDUULHGRXWSULRUWRLQVWDOODWLRQ

,QVWDOOLQJWKHSXPSVHW

(OHFWULFDOV\VWHP

&RQWHQWV

$PDUH[.57 RI


4/86

&RPPLVVLRQLQJ6WDUWXS6KXWGRZQ &RPPLVVLRQLQJVWDUWXS

2SHUDWLQJOLPLWV

6KXWGRZQVWRUDJHSUHVHUYDWLRQ

5HWXUQLQJWRVHUYLFH

6HUYLFLQJ0DLQWHQDQFH 6DIHW\UHJXODWLRQV

6HUYLFLQJLQVSHFWLRQ

'UDLQDJHFOHDQLQJ

'LVPDQWOLQJWKHSXPSVHW

5HDVVHPEOLQJWKHSXPSVHW

7LJKWHQLQJWRUTXHV

6SDUHSDUWVVWRFN

7URXEOHVKRRWLQJ 5HODWHG'RFXPHQWV *HQHUDODVVHPEO\GUDZLQJV

:LULQJGLDJUDP

)ODPHSDWKVRQH[SORVLRQSURRIPRWRUV

6HFWLRQDOGUDZLQJVRIWKHPHFKDQLFDOVHDO

7UDQVSRUWDEOHZHWLQVWDOOHGPRGHO

(&'HFODUDWLRQRI&RQIRUPLW\ &HUWLILFDWHRI'HFRQWDPLQDWLRQ

,QGH[

&RQWHQWV

RI $PDUH[.57


5/86

*ORVVDU\%DFNSXOORXWXQLW

3XPSZLWKRXWSXPSFDVLQJSDUWO\FRPSOHWHGPDFKLQHU\

&HUWLILFDWHRIGHFRQWDPLQDWLRQ$FHUWLILFDWHRIGHFRQWDPLQDWLRQLVHQFORVHGE\WKHFXVWRPHUZKHQUHWXUQLQJWKHSURGXFWWRWKHPDQXIDFWXUHUWRFHUWLI\WKDWWKHSURGXFWKDVEHHQSURSHUO\GUDLQHGWRHOLPLQDWHDQ\HQYLURQPHQWDODQGKHDOWKKD]DUGVDULVLQJIURPFRPSRQHQWVLQFRQWDFWZLWKWKHIOXLGKDQGOHG

&ORVHFRXSOHGGHVLJQ0RWRUGLUHFWO\ILWWHGWRWKHSXPSYLDDIODQJHRUDGULYHODQWHUQ

)ODPHSDWK7KHVXUIDFHRIPRWRUKRXVLQJFRPSRQHQWVZKLFKIRUPIODPHSURRIMRLQWVZKHQDQH[SORVLRQSURRIPRWRULVLQVWDOOHG

+\GUDXOLFV\VWHP7KHSDUWRIWKHSXPSLQZKLFKWKHNLQHWLFHQHUJ\LVFRQYHUWHGLQWRSUHVVXUHHQHUJ\

*ORVVDU\

$PDUH[.57 RI


6/86

*HQHUDO 3ULQFLSOHV7KLVPDQXDOLVVXSSOLHGDVDQLQWHJUDOSDUWRIWKHW\SHVHULHVDQGYDULDQWVLQGLFDWHGRQWKHIURQWFRYHUIRUGHWDLOVSOHDVHUHIHUWRWKHWDEOHVEHORZ

7DEOH9DULDQWVFRYHUHGE\WKLVPDQXDO6L]HV ,PSHOOHUW\SHV 0DWHULDOYDULDQW*UH\FDVWLURQ ,QGXVWULDOPDWHULDOV

* * * *+ + & & ).6 ).6 ). ) ). ). ). ). () () ) ) ) ) ) ) ). ). . . . . . ' ' ' ) ) ) ) ) ) ) ) ) ) ) ) ) ) (). (). ). ) ). ). ). ). ' ' ' '(). '(). '). ) ). ). ). ). '). '). '). ) ). ). ). ). . . . (). (). ). ) ). ). ). ). ' ' ' '(). '(). '). ) ). ). ). ). '. '. '. '(). '(). '). ) ). ). ). ). . . . . . . . '. '. '. . . . . . . . . . . . . . . . . . . '. '. '. (. (. . . . . .

'. '. '. . . . . . . . . . . . '. '. '. . . . . . . . . . . .

7KHPDQXDOGHVFULEHVWKHSURSHUDQGVDIHXVHRIWKLVHTXLSPHQWLQDOOSKDVHVRIRSHUDWLRQ

7KHQDPHSODWHLQGLFDWHVWKHW\SHVHULHVDQGVL]HWKHPDLQRSHUDWLQJGDWDWKHRUGHUQXPEHUDQGWKHRUGHULWHPQXPEHU7KHRUGHUQXPEHUDQGRUGHULWHPQXPEHUFOHDUO\LGHQWLI\WKHSXPSVHWDQGVHUYHDVLGHQWLILFDWLRQIRUDOOIXUWKHUEXVLQHVVSURFHVVHV

,QWKHHYHQWRIGDPDJHLPPHGLDWHO\FRQWDFW\RXUQHDUHVW.6%VHUYLFHFHQWUHWRPDLQWDLQWKHULJKWWRFODLPXQGHUZDUUDQW\

,QVWDOODWLRQRISDUWO\FRPSOHWHGPDFKLQHU\7RLQVWDOOSDUWO\FRPSOHWHGPDFKLQHU\VXSSOLHGE\.6%UHIHUWRWKHVXEVHFWLRQVXQGHU6HUYLFLQJ0DLQWHQDQFH

7DUJHWJURXS7KLVPDQXDOLVDLPHGDWWKHWDUJHWJURXSRIWUDLQHGDQGTXDOLILHGVSHFLDOLVWWHFKQLFDOSHUVRQQHO

*HQHUDO

RI $PDUH[.57


7/86

2WKHUDSSOLFDEOHGRFXPHQWV7DEOH2YHUYLHZRIRWKHUDSSOLFDEOHGRFXPHQWV'RFXPHQW &RQWHQWV'DWDVKHHW 'HVFULSWLRQRIWKHWHFKQLFDOGDWDRIWKHSXPS

VHW*HQHUDODUUDQJHPHQWGUDZLQJ

RXWOLQHGUDZLQJ

'HVFULSWLRQRIPDWLQJDQGLQVWDOODWLRQ

GLPHQVLRQVIRUWKHSXPSVHWZHLJKWV+\GUDXOLFFKDUDFWHULVWLFFXUYH &KDUDFWHULVWLFFXUYHVVKRZLQJKHDGIORZUDWH

HIILFLHQF\DQGSRZHULQSXW

*HQHUDODVVHPEO\GUDZLQJ 6HFWLRQDOGUDZLQJRIWKHSXPSVHW

6XEVXSSOLHUSURGXFWOLWHUDWXUH 2SHUDWLQJPDQXDOVDQGRWKHUSURGXFWOLWHUDWXUHGHVFULELQJDFFHVVRULHVDQGLQWHJUDWHGPDFKLQHU\FRPSRQHQWV

6SDUHSDUWVOLVWV 'HVFULSWLRQRIVSDUHSDUWV

6XSSOHPHQWDU\RSHUDWLQJPDQXDOV (JIRUVSHFLDODFFHVVRULHV

)RUDFFHVVRULHVDQGRULQWHJUDWHGPDFKLQHU\FRPSRQHQWVREVHUYHWKHUHOHYDQWPDQXIDFWXUHUVSURGXFWOLWHUDWXUH

6\PEROV7DEOH6\PEROVXVHGLQWKLVPDQXDO6\PERO 'HVFULSWLRQ

&RQGLWLRQVZKLFKQHHGWREHIXOILOOHGEHIRUHSURFHHGLQJZLWKWKHVWHSE\VWHSLQVWUXFWLRQV

6DIHW\LQVWUXFWLRQV 5HVXOWRIDQDFWLRQ &URVVUHIHUHQFHV

6WHSE\VWHSLQVWUXFWLRQV

1RWH5HFRPPHQGDWLRQVDQGLPSRUWDQWLQIRUPDWLRQRQKRZWRKDQGOHWKHSURGXFW

,IDJUHHGWREHLQFOXGHGLQWKHVFRSHRIVXSSO\

*HQHUDO

$PDUH[.57 RI


8/86

6DIHW\$OOWKHLQIRUPDWLRQFRQWDLQHGLQWKLVVHFWLRQUHIHUVWRKD]DUGRXVVLWXDWLRQV

.H\WRVDIHW\V\PEROVPDUNLQJV7DEOH'HILQLWLRQRIVDIHW\V\PEROVPDUNLQJV

6\PERO 'HVFULSWLRQ '$1*(5 '$1*(5

7KLVVLJQDOZRUGLQGLFDWHVDKLJKULVNKD]DUGZKLFKLIQRWDYRLGHGZLOOUHVXOWLQGHDWKRUVHULRXVLQMXU\

:$51,1* :$51,1*7KLVVLJQDOZRUGLQGLFDWHVDPHGLXPULVNKD]DUGZKLFKLIQRWDYRLGHGFRXOGUHVXOWLQGHDWKRUVHULRXVLQMXU\

&$87,21 &$87,217KLVVLJQDOZRUGLQGLFDWHVDKD]DUGZKLFKLIQRWDYRLGHGFRXOGUHVXOWLQGDPDJHWRWKHPDFKLQHDQGLWVIXQFWLRQV([SORVLRQSURWHFWLRQ7KLVV\PEROLGHQWLILHVLQIRUPDWLRQDERXWDYRLGLQJH[SORVLRQVLQSRWHQWLDOO\H[SORVLYHDWPRVSKHUHVLQDFFRUGDQFHZLWK(&'LUHFWLYH

(&$7(;*HQHUDOKD]DUG,QFRQMXQFWLRQZLWKRQHRIWKHVLJQDOZRUGVWKLVV\PEROLQGLFDWHVDKD]DUGZKLFKZLOORUFRXOGUHVXOWLQGHDWKRUVHULRXVLQMXU\

(OHFWULFDOKD]DUG,QFRQMXQFWLRQZLWKRQHRIWKHVLJQDOZRUGVWKLVV\PEROLQGLFDWHVDKD]DUGLQYROYLQJHOHFWULFDOYROWDJHDQGLGHQWLILHVLQIRUPDWLRQDERXWSURWHFWLRQDJDLQVWHOHFWULFDOYROWDJH0DFKLQHGDPDJH,QFRQMXQFWLRQZLWKWKHVLJQDOZRUG&$87,21WKLVV\PEROLQGLFDWHVDKD]DUGIRUWKHPDFKLQHDQGLWVIXQFWLRQV

*HQHUDO7KLVPDQXDOFRQWDLQVJHQHUDOLQVWDOODWLRQRSHUDWLQJDQGPDLQWHQDQFHLQVWUXFWLRQVWKDWPXVWEHREVHUYHGWRHQVXUHVDIHSXPSRSHUDWLRQDQGSUHYHQWSHUVRQDOLQMXU\DQGGDPDJHWRSURSHUW\

7KHVDIHW\LQIRUPDWLRQLQDOOVHFWLRQVRIWKLVPDQXDOPXVWEHFRPSOLHGZLWK

7KLVPDQXDOPXVWEHUHDGDQGFRPSOHWHO\XQGHUVWRRGE\WKHVSHFLDOLVWSHUVRQQHORSHUDWRUVUHVSRQVLEOHSULRUWRLQVWDOODWLRQDQGFRPPLVVLRQLQJ

7KHFRQWHQWVRIWKLVPDQXDOPXVWEHDYDLODEOHWRWKHVSHFLDOLVWSHUVRQQHODWWKHVLWHDWDOOWLPHV

,QIRUPDWLRQDWWDFKHGGLUHFWO\WRWKHSXPSPXVWDOZD\VEHFRPSOLHGZLWKDQGEHNHSWLQDSHUIHFWO\OHJLEOHFRQGLWLRQDWDOOWLPHV7KLVDSSOLHVWRIRUH[DPSOH

$UURZLQGLFDWLQJWKHGLUHFWLRQRIURWDWLRQ

0DUNLQJVIRUFRQQHFWLRQV

1DPHSODWH

7KHRSHUDWRULVUHVSRQVLEOHIRUHQVXULQJFRPSOLDQFHZLWKDOOORFDOUHJXODWLRQVQRWWDNHQLQWRDFFRXQWLQWKLVPDQXDO

,QWHQGHGXVH7KHSXPSVHWPXVWRQO\EHRSHUDWHGZLWKLQWKHRSHUDWLQJOLPLWVGHVFULEHGLQWKHRWKHUDSSOLFDEOHGRFXPHQWV

2QO\RSHUDWHSXPSVHWVZKLFKDUHLQSHUIHFWWHFKQLFDOFRQGLWLRQ

'RQRWRSHUDWHSDUWLDOO\DVVHPEOHGSXPSVHWV

2QO\XVHWKHSXPSVHWWRKDQGOHWKHIOXLGVGHVFULEHGLQWKHGDWDVKHHWRUSURGXFWOLWHUDWXUHRIWKHSXPSPRGHO

'$1*(5

6DIHW\

RI $PDUH[.57


9/86

1HYHURSHUDWHWKHSXPSVHWZLWKRXWWKHIOXLGWREHKDQGOHG

2EVHUYHWKHOLPLWVIRUFRQWLQXRXVRSHUDWLRQVSHFLILHGLQWKHGDWDVKHHWRUSURGXFWOLWHUDWXUH4PLQ

DQG4PD[WRSUHYHQWGDPDJHVXFKDVVKDIWIUDFWXUH

EHDULQJIDLOXUHPHFKDQLFDOVHDOGDPDJHHWF

:KHQXQWUHDWHGZDVWHZDWHULVKDQGOHGWKHGXW\SRLQWVLQFRQWLQXRXVRSHUDWLRQOLHZLWKLQWR[4RSW

WRPLQLPLVHWKHULVNRIFORJJLQJKDUGHQLQJ

$YRLGGXW\SRLQWVIRUFRQWLQXRXVRSHUDWLRQDWYHU\ORZVSHHGVDQGVPDOOIORZUDWHV[4RSW

2EVHUYHWKHPD[LPXPIORZUDWHVLQGLFDWHGLQWKHGDWDVKHHWRUSURGXFWOLWHUDWXUHWRSUHYHQWRYHUKHDWLQJPHFKDQLFDOVHDOGDPDJHFDYLWDWLRQGDPDJHEHDULQJGDPDJHHWF

'RQRWWKURWWOHWKHIORZUDWHRQWKHVXFWLRQVLGHRIWKHSXPSVHWWRSUHYHQWFDYLWDWLRQGDPDJH

&RQVXOWWKHPDQXIDFWXUHUDERXWDQ\XVHRUPRGHRIRSHUDWLRQQRWGHVFULEHGLQWKHGDWDVKHHWRUSURGXFWOLWHUDWXUH

2QO\XVHWKHUHVSHFWLYHLPSHOOHUW\SHVLQFRPELQDWLRQZLWKWKHIOXLGVGHVFULEHGEHORZ

,PSHOOHUZLWKFXWWHU

LPSHOOHUW\SH6

6XLWDEOHIRUWKHIROORZLQJIOXLGV)OXLGVFRQWDLQLQJFRDUVHVXEVWDQFHVDQGRUORQJILEUHV

)UHHIORZLPSHOOHULPSHOOHUW\SH)

6XLWDEOHIRUWKHIROORZLQJIOXLGV)OXLGVFRQWDLQLQJVROLGVDQGVWULQJ\PDWHULDODVZHOODVIOXLGVZLWKHQWUDSSHGDLURUJDV

&ORVHGVLQJOHFKDQQHOLPSHOOHULPSHOOHUW\SH(

6XLWDEOHIRUWKHIROORZLQJIOXLGV)OXLGVFRQWDLQLQJVROLGVDQGVWULQJ\PDWHULDO

&ORVHGPXOWLFKDQQHOLPSHOOHULPSHOOHUW\SH.

6XLWDEOHIRUWKHIROORZLQJIOXLGV&RQWDPLQDWHGVROLGVODGHQQRQJDVHRXVIOXLGVZLWKRXWVWULQJ\PDWHULDO

0LQLPXPSHUPLVVLEOHIORZUDWH

0D[LPXPSHUPLVVLEOHIORZUDWH %HVWHIILFLHQF\SRLQW

6DIHW\

$PDUH[.57 RI


10/86

2SHQGLDJRQDOVLQJOHFKDQQHOLPSHOOHU'LPSHOOHU

6XLWDEOHIRUWKHIROORZLQJIOXLGV)OXLGVFRQWDLQLQJVROLGVXEVWDQFHVDQGORQJILEUHV

3UHYHQWLRQRIIRUHVHHDEOHPLVXVH 2EVHUYHWKHPLQLPXPIORZYHORFLWLHVUHTXLUHGWRIXOO\RSHQWKHVZLQJFKHFN

YDOYHVWRSUHYHQWWKHUHGXFWLRQRISUHVVXUHDQGULVNRIFORJJLQJ&RQWDFWWKHPDQXIDFWXUHUIRUWKHUHTXLUHGPLQLPXPIORZYHORFLWLHVORVVFRHIILFLHQWV

1HYHUH[FHHGWKHSHUPLVVLEOHRSHUDWLQJOLPLWVVSHFLILHGLQWKHGDWDVKHHWDQGLQWKHSURGXFWOLWHUDWXUHUHJDUGLQJSUHVVXUHWHPSHUDWXUHHWF

2EVHUYHDOOVDIHW\LQIRUPDWLRQDQGLQVWUXFWLRQVLQWKLVPDQXDO

3HUVRQQHOTXDOLILFDWLRQDQGWUDLQLQJ$OOSHUVRQQHOLQYROYHGPXVWEHIXOO\TXDOLILHGWRWUDQVSRUWLQVWDOORSHUDWHPDLQWDLQDQGLQVSHFWWKHPDFKLQHU\WKLVPDQXDOUHIHUVWR

7KHUHVSRQVLELOLWLHVFRPSHWHQFHDQGVXSHUYLVLRQRIDOOSHUVRQQHOLQYROYHGLQWUDQVSRUWLQVWDOODWLRQRSHUDWLRQPDLQWHQDQFHDQGLQVSHFWLRQPXVWEHFOHDUO\GHILQHGE\WKHRSHUDWRU

'HILFLWVLQNQRZOHGJHPXVWEHUHFWLILHGE\PHDQVRIWUDLQLQJDQGLQVWUXFWLRQSURYLGHGE\VXIILFLHQWO\WUDLQHGVSHFLDOLVWSHUVRQQHO,IUHTXLUHGWKHRSHUDWRUFDQFRPPLVVLRQWKHPDQXIDFWXUHUVXSSOLHUWRWUDLQWKHSHUVRQQHO

7UDLQLQJRQWKHSXPSVHWPXVWDOZD\VEHVXSHUYLVHGE\WHFKQLFDOVSHFLDOLVWSHUVRQQHO

&RQVHTXHQFHVDQGULVNVFDXVHGE\QRQFRPSOLDQFHZLWKWKHVHRSHUDWLQJLQVWUXFWLRQV 1RQFRPSOLDQFHZLWKWKHVHRSHUDWLQJLQVWUXFWLRQVZLOOOHDGWRIRUIHLWXUHRI

ZDUUDQW\FRYHUDQGRIDQ\DQGDOOULJKWVWRFODLPVIRUGDPDJHV

1RQFRPSOLDQFHFDQIRUH[DPSOHKDYHWKHIROORZLQJFRQVHTXHQFHV

+D]DUGVWRSHUVRQVGXHWRHOHFWULFDOWKHUPDOPHFKDQLFDODQGFKHPLFDOHIIHFWVDQGH[SORVLRQV

)DLOXUHRILPSRUWDQWSURGXFWIXQFWLRQV

)DLOXUHRISUHVFULEHGPDLQWHQDQFHDQGVHUYLFLQJSUDFWLFHV

+D]DUGWRWKHHQYLURQPHQWGXHWROHDNDJHRIKD]DUGRXVVXEVWDQFHV

6DIHW\DZDUHQHVV,QDGGLWLRQWRWKHVDIHW\LQIRUPDWLRQFRQWDLQHGLQWKLVPDQXDODQGWKHLQWHQGHGXVH

WKHIROORZLQJVDIHW\UHJXODWLRQVVKDOOEHFRPSOLHGZLWK

$FFLGHQWSUHYHQWLRQKHDOWKDQGVDIHW\UHJXODWLRQV

([SORVLRQSURWHFWLRQUHJXODWLRQV

6DIHW\UHJXODWLRQVIRUKDQGOLQJKD]DUGRXVVXEVWDQFHV

$SSOLFDEOHVWDQGDUGVDQGODZV

6DIHW\LQIRUPDWLRQIRUWKHRSHUDWRUXVHU 7KHRSHUDWRUVKDOOILWFRQWDFWJXDUGVIRUKRWFROGDQGPRYLQJSDUWVDQGFKHFN

WKDWWKHJXDUGVIXQFWLRQSURSHUO\

'RQRWUHPRYHDQ\FRQWDFWJXDUGVGXULQJRSHUDWLRQ

3URYLGHWKHSHUVRQQHOZLWKSURWHFWLYHHTXLSPHQWDQGPDNHVXUHLWLVXVHG

6DIHW\

RI $PDUH[.57


11/86

&RQWDLQOHDNDJHVHJDWWKHVKDIWVHDORIKD]DUGRXVIOXLGVKDQGOHGHJH[SORVLYHWR[LFKRWVRDVWRDYRLGDQ\GDQJHUWRSHUVRQVDQGWKHHQYLURQPHQW$GKHUHWRDOOUHOHYDQWODZV

(OLPLQDWHDOOHOHFWULFDOKD]DUGV,QWKLVUHVSHFWUHIHUWRWKHDSSOLFDEOHQDWLRQDOVDIHW\UHJXODWLRQVDQGRUUHJXODWLRQVLVVXHGE\WKHORFDOHQHUJ\VXSSO\FRPSDQLHV

,IVKXWWLQJGRZQWKHSXPSGRHVQRWLQFUHDVHSRWHQWLDOULVNILWDQHPHUJHQF\VWRSFRQWUROGHYLFHLQWKHLPPHGLDWHYLFLQLW\RIWKHSXPSVHWGXULQJSXPSVHWLQVWDOODWLRQ

6DIHW\LQIRUPDWLRQIRUPDLQWHQDQFHLQVSHFWLRQDQGLQVWDOODWLRQZRUN 0RGLILFDWLRQVRUDOWHUDWLRQVRIWKHSXPSDUHRQO\SHUPLWWHGZLWKWKH

PDQXIDFWXUHUVSULRUFRQVHQW

8VHRQO\RULJLQDOVSDUHSDUWVRUSDUWVDXWKRULVHGE\WKHPDQXIDFWXUHU7KHXVHRIRWKHUSDUWVFDQLQYDOLGDWHDQ\OLDELOLW\RIWKHPDQXIDFWXUHUIRUUHVXOWLQJGDPDJH

7KHRSHUDWRUHQVXUHVWKDWDOOPDLQWHQDQFHLQVSHFWLRQDQGLQVWDOODWLRQZRUNLVSHUIRUPHGE\DXWKRULVHGTXDOLILHGVSHFLDOLVWSHUVRQQHOZKRDUHWKRURXJKO\IDPLOLDUZLWKWKHPDQXDO

2QO\FDUU\RXWZRUNRQWKHSXPSVHWGXULQJVWDQGVWLOORIWKHSXPS 7KHSXPSFDVLQJPXVWKDYHFRROHGGRZQWRDPELHQWWHPSHUDWXUH

3XPSSUHVVXUHPXVWKDYHEHHQUHOHDVHGDQGWKHSXPSPXVWKDYHEHHQGUDLQHG

:KHQWDNLQJWKHSXPSVHWRXWRIVHUYLFHDOZD\VDGKHUHWRWKHSURFHGXUHGHVFULEHGLQWKHPDQXDO

'HFRQWDPLQDWHSXPSVZKLFKKDQGOHIOXLGVSRVLQJDKHDOWKKD]DUG

$VVRRQDVWKHZRUNLVFRPSOHWHGUHLQVWDOODQGRUUHDFWLYDWHDQ\VDIHW\UHOHYDQWDQGSURWHFWLYHGHYLFHV%HIRUHUHWXUQLQJWKHSURGXFWWRVHUYLFHREVHUYHDOOLQVWUXFWLRQVRQFRPPLVVLRQLQJ

8QDXWKRULVHGPRGHVRIRSHUDWLRQ1HYHURSHUDWHWKHSXPSVHWRXWVLGHWKHOLPLWVVWDWHGLQWKHGDWDVKHHWDQGLQWKLVPDQXDO

7KHZDUUDQW\UHODWLQJWRWKHRSHUDWLQJUHOLDELOLW\DQGVDIHW\RIWKHVXSSOLHGSXPSVHWLVRQO\YDOLGLIWKHHTXLSPHQWLVXVHGLQDFFRUGDQFHZLWKLWVLQWHQGHGXVH

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

5HSDLU6SHFLDOUHJXODWLRQVDSSO\WRUHSDLUZRUNRQH[SORVLRQSURRISXPSV0RGLILFDWLRQVRUDOWHUDWLRQRIWKHSXPSVHWFRXOGDIIHFWH[SORVLRQSURWHFWLRQDQGDUHRQO\SHUPLWWHGDIWHUFRQVXOWDWLRQZLWKWKHPDQXIDFWXUHU

'$1*(5

6DIHW\

$PDUH[.57 RI


12/86

5HSDLUZRUNDWWKHIODPHSURRIMRLQWVPXVWRQO\EHSHUIRUPHGLQDFFRUGDQFHZLWKWKHPDQXIDFWXUHUVLQVWUXFWLRQV5HSDLUWRWKHYDOXHVLQWDEOHVDQGRI(1LVQRWSHUPLWWHG

6DIHW\

RI $PDUH[.57


13/86

7UDQVSRUW7HPSRUDU\6WRUDJH'LVSRVDO &KHFNLQJWKHFRQGLWLRQXSRQGHOLYHU\

2QWUDQVIHURIJRRGVFKHFNHDFKSDFNDJLQJXQLWIRUGDPDJH

,QWKHHYHQWRILQWUDQVLWGDPDJHDVVHVVWKHH[DFWGDPDJHGRFXPHQWLWDQG

QRWLI\.6%RUWKHVXSSO\LQJGHDOHUDVDSSOLFDEOHDQGWKHLQVXUHUDERXWWKHGDPDJHLQZULWLQJLPPHGLDWHO\

7UDQVSRUW

,PSURSHUWUDQVSRUW'DQJHUWROLIHIURPIDOOLQJSDUWV'DPDJHWRWKHSXPSVHW

8VHWKHDWWDFKPHQWSRLQWSURYLGHGH\HEROWOLIWLQJOXJRUEDLOIRUDWWDFKLQJOLIWLQJDFFHVVRULHV

1HYHUVXVSHQGWKHSXPSVHWE\LWVSRZHUFDEOH

1HYHUXVHWKHOLIWLQJFKDLQVRUOLIWLQJURSHVLQFOXGHGLQ.6%VVFRSHRIVXSSO\IRUOLIWLQJORDGVRWKHUWKDQWKH.6%SURGXFWVXSSOLHG

6HFXUHO\DWWDFKWKHOLIWLQJURSHVRUOLIWLQJFKDLQVWRWKHSXPSDQGFUDQH

7KHQXPEHURQWKHWDJVDWWDFKHGWRWKHSXPSVHWPXVWPDWFKWKHQXPEHURQWKHWDJDWWDFKHGWRWKHFKDLQ

7UDQVSRUWWKHSXPSVHWDVLOOXVWUDWHG

)LJ7UDQVSRUWLQJWKHSXPSVHW

$

%

)LJ7DJORFDWLRQ$FKDLQWDJ%SXPSWDJ

7UDQVSRUW7HPSRUDU\6WRUDJH'LVSRVDO

$PDUH[.57 RI


14/86

6HWWLQJGRZQWKHSXPSVHW

,QFRUUHFWSRVLWLRQLQJ3HUVRQDOLQMXU\DQGGDPDJHWRSURSHUW\

6HWWKHSXPSVHWGRZQLQDYHUWLFDOSRVLWLRQZLWKWKHPRWRURQWRS

8VHDSSURSULDWHPHDQVWRVHFXUHWKHSXPSVHWDJDLQVWRYHUWXUQLQJDQGWLSSLQJRYHU

5HIHUWRWKHZHLJKWVJLYHQLQWKHGDWDVKHHWRQWKHQDPHSODWH

,PSURSHUSODFLQJRISXPSVHWVLQYHUWLFDOKRUL]RQWDOSRVLWLRQ3HUVRQDOLQMXU\DQGGDPDJHWRSURSHUW\

8VHDSSURSULDWHPHDQVWRVHFXUHWKHSXPSVHWDJDLQVWRYHUWXUQLQJRUWLSSLQJRYHU

8VHWZROLIWLQJGHYLFHVZKHQKDQGOLQJODUJHSXPSVHWVLISRVVLEOHXVLQJWKHDWWDFKPHQWSRLQWSURYLGHGRQWKHPRWRUDQGWKHGLVFKDUJHQR]]OH

6HFXUHSRZHUFDEOHVDJDLQVWIDOOLQJ 8VHDGGLWLRQDOVXSSRUWVIRUWKHWUDQVSRUWKROGHUWRVHFXUHWKHSXPSVHWDJDLQVW

RYHUWXUQLQJ

0DLQWDLQVXIILFLHQWVDIHW\GLVWDQFHZKHQOLIWLQJWKHSXPSVHW

,PSURSHUOLIWLQJPRYLQJRIKHDY\DVVHPEOLHVRUFRPSRQHQWV3HUVRQDOLQMXU\DQGGDPDJHWRSURSHUW\

8VHVXLWDEOHWUDQVSRUWGHYLFHVOLIWLQJHTXLSPHQWDQGOLIWLQJWDFNOHWRPRYHKHDY\DVVHPEOLHVRUFRPSRQHQWV

6WRUDJH3UHVHUYDWLRQ,IFRPPLVVLRQLQJLVWRWDNHSODFHVRPHWLPHDIWHUGHOLYHU\ZHUHFRPPHQGWKDWWKHIROORZLQJPHDVXUHVEHWDNHQIRUSXPSVHWVWRUDJH

,PSURSHUVWRUDJH'DPDJHWRWKHSRZHUFDEOHV

6XSSRUWWKHSRZHUFDEOHVDWWKHFDEOHHQWU\WRSUHYHQWSHUPDQHQWGHIRUPDWLRQ

2QO\UHPRYHWKHSURWHFWLYHFDSVIURPWKHSRZHUFDEOHVDWWKHWLPHRILQVWDOODWLRQ

'DPDJHGXULQJVWRUDJHE\KXPLGLW\GLUWRUYHUPLQ&RUURVLRQFRQWDPLQDWLRQRIWKHSXPSVHW

)RURXWGRRUVWRUDJHFRYHUWKHSDFNHGRUXQSDFNHGSXPSVHWDQGDFFHVVRULHVZLWKZDWHUSURRIPDWHULDO

:HWFRQWDPLQDWHGRUGDPDJHGRSHQLQJVDQGFRQQHFWLRQV/HDNDJHRUGDPDJHWRWKHSXPSVHW

2QO\UHPRYHFDSVFRYHUVIURPWKHRSHQLQJVRIWKHSXPSVHWDWWKHWLPHRILQVWDOODWLRQ


RI $PDUH[.57


15/86

7DEOH$PELHQWFRQGLWLRQVIRUVWRUDJH$PELHQWFRQGLWLRQV 9DOXH5HODWLYHKXPLGLW\ WR

QRQFRQGHQVLQJ$PELHQWWHPSHUDWXUH WR&

6WRUHWKHSXPSVHWXQGHUGU\DQGYLEUDWLRQIUHHFRQGLWLRQVLISRVVLEOHLQLWVRULJLQDOSDFNDJLQJ

6SUD\FRDWWKHLQVLGHZDOORIWKHSXPSFDVLQJDQGLQSDUWLFXODUWKHLPSHOOHUFOHDUDQFHDUHDVZLWKDSUHVHUYDWLYH

6SUD\WKHSUHVHUYDWLYHWKURXJKWKHVXFWLRQDQGGLVFKDUJHQR]]OHV,WLVDGYLVDEOHWRWKHQFORVHWKHSXPSQR]]OHVHJZLWKSODVWLFFDSVRUVLPLODU

2EVHUYHWKHPDQXIDFWXUHUVLQVWUXFWLRQVIRUDSSOLFDWLRQUHPRYDORIWKHSUHVHUYDWLYH

5HWXUQWRVXSSOLHU 'UDLQWKHSXPSDVSHURSHUDWLQJLQVWUXFWLRQV

$OZD\VIOXVKDQGFOHDQWKHSXPSSDUWLFXODUO\LILWKDVEHHQXVHGIRUKDQGOLQJQR[LRXVH[SORVLYHKRWRURWKHUKD]DUGRXVIOXLGV

,IWKHIOXLGVKDQGOHGE\WKHSXPSVHWOHDYHUHVLGXHVZKLFKPLJKWOHDGWRFRUURVLRQGDPDJHZKHQFRPLQJLQWRFRQWDFWZLWKDWPRVSKHULFKXPLGLW\RUZKLFKPLJKWLJQLWHZKHQFRPLQJLQWRFRQWDFWZLWKR[\JHQWKHSXPSVHWPXVWDOVREHQHXWUDOLVHGDQGDQK\GURXVLQHUWJDVPXVWEHEORZQWKURXJKWKHSXPSIRUGU\LQJSXUSRVHV

$OZD\VFRPSOHWHDQGHQFORVHDFHUWLILFDWHRIGHFRQWDPLQDWLRQZKHQUHWXUQLQJWKHSXPSVHW$OZD\VLQGLFDWHDQ\VDIHW\DQGGHFRQWDPLQDWLRQPHDVXUHVWDNHQ

,IUHTXLUHGDEODQNFHUWLILFDWHRIGHFRQWDPLQDWLRQFDQEHGRZQORDGHGIURPWKH.6%ZHEVLWHDWZZZNVEFRPFHUWLILFDWHBRIBGHFRQWDPLQDWLRQ

'LVSRVDO

)OXLGVFRQVXPDEOHVDQGVXSSOLHVZKLFKDUHKRWRUSRVHDKHDOWKKD]DUG+D]DUGWRSHUVRQVDQGWKHHQYLURQPHQW

&ROOHFWDQGSURSHUO\GLVSRVHRIIOXVKLQJPHGLXPDQGDQ\UHVLGXHVRIWKHIOXLGKDQGOHG

:HDUVDIHW\FORWKLQJDQGDSURWHFWLYHPDVNLIUHTXLUHG

2EVHUYHDOOOHJDOUHJXODWLRQVRQWKHGLVSRVDORIIOXLGVSRVLQJDKHDOWKKD]DUG

'LVPDQWOHWKHSXPSVHW&ROOHFWJUHDVHVDQGRWKHUOXEULFDQWVGXULQJGLVPDQWOLQJ

6HSDUDWHDQGVRUWWKHSXPSPDWHULDOVHJE\0HWDOV3ODVWLFV(OHFWURQLFZDVWH*UHDVHVDQGRWKHUOXEULFDQWV

'LVSRVHRIPDWHULDOVLQDFFRUGDQFHZLWKORFDOUHJXODWLRQVRULQDQRWKHU

FRQWUROOHGPDQQHU


$PDUH[.57 RI
http://www.ksb.com/GRAS-Certhttp://www.ksb.com/GRAS-Cert


16/86

'HVFULSWLRQRIWKH3XPS6HW *HQHUDOGHVFULSWLRQ3XPSIRUKDQGOLQJXQWUHDWHGZDVWHZDWHUFRQWDLQLQJORQJILEUHVDQGVROLGVXEVWDQFHVIOXLGVFRQWDLQLQJDLUJDVDVZHOODVUDZDFWLYDWHGDQGGLJHVWHGVOXGJH

'HVLJQDWLRQ([DPSOH.57.;.*67DEOH.H\WRWKHGHVLJQDWLRQ&RGH 'HVFULSWLRQ.57 7\SHVHULHV. ,PSHOOHUW\SHHJ.FKDQQHOLPSHOOHU 1RPLQDOGLVFKDUJHQR]]OHGLDPHWHU'1>PP@ 0D[LPXPQRPLQDOLPSHOOHUGLDPHWHU>PP@ 0RWRUVL]H 1XPEHURISROHV

; 0RWRUYHUVLRQHJ;H[SORVLRQSURRIWR$7(;,,*7. 6RSHUDWLRQZLWKPRWRUVRXWVLGHWKHIOXLG* 0DWHULDOYDULDQWHJ*FRPSOHWHSXPSLQJUH\FDVWLURQ6 ,QVWDOODWLRQW\SHHJ6VWDWLRQDU\ZHWLQVWDOODWLRQ

ZLWKRXWFRROLQJV\VWHP

1DPHSODWH

$NWLHQJHVHOOVFKDIW)UDQNHQWKDO

$NWLHQJHVHOOVFKDIW)UDQNHQWKDO

7


17/86

,PSHOOHUW\SH 9DULRXVDSSOLFDWLRQEDVHGLPSHOOHUW\SHV

6KDIWVHDO 7ZRELGLUHFWLRQDOPHFKDQLFDOVHDOVLQWDQGHPDUUDQJHPHQWZLWKOLTXLGUHVHUYRLU

3XPSVZLWKUHLQIRUFHGEHDULQJVZLWKOHDNDJHFKDPEHU

6WDQGDUGEHDULQJDVVHPEO\ *UHDVHOXEULFDWHGEHDULQJVVHDOHGIRUOLIH

0DLQWHQDQFHIUHH

5HLQIRUFHGEHDULQJDVVHPEO\0RWRUHQGEHDULQJ

*UHDVHOXEULFDWHGEHDULQJVVHDOHGIRUOLIH

0DLQWHQDQFHIUHH

3XPSHQGEHDULQJV

*UHDVHOXEULFDWHGEHDULQJV

5HOXEULFDEOH

7KHIROORZLQJK\GUDXOLFV\VWHPPRWRUFRPELQDWLRQVKDYHUHLQIRUFHGEHDULQJV

7DEOH5HLQIRUFHGEHDULQJDVVHPEO\6L]HRIK\GUDXOLFV\VWHP 0RWRUVL]HDQGQXPEHURISROHV ' ; ; ' ; ; ' ; ; ;' ; ;' ; ;' ; ; ;

'ULYH 7KUHHSKDVHDV\QFKURQRXVVTXLUUHOFDJHPRWRU

0RWRUVLQWHJUDWHGLQH[SORVLRQSURRISXPSVHWVDUHVXSSOLHGLQ([G,,%W\SHRISURWHFWLRQ

'HVFULSWLRQRIWKH3XPS6HW

$PDUH[.57 RI


18/86

7\SHVRILQVWDOODWLRQ,QVWDOODWLRQW\SHV.DQG67DEOH6WDWLRQDU\ZHWLQVWDOODWLRQ

*XLGHZLUHDUUDQJHPHQW *XLGHUDLODUUDQJHPHQW

,QVWDOODWLRQW\SH37DEOH7UDQVSRUWDEOHZHWLQVWDOOHGPRGHO

3XPSVHWVRILQVWDOODWLRQW\SHV3DQG6DUHGHVLJQHGIRUFRQWLQXRXVO\VXEPHUJHGRSHUDWLRQ7KHPRWRULVFRROHGE\WKHIOXLGKDQGOHGRQWKHPRWRUVXUIDFH2SHUDWLRQZLWKWKHPRWRURXWVLGHWKHIOXLGKDQGOHGLVSRVVLEOHIRUVKRUWSHULRGV

3XPSVHWVRILQVWDOODWLRQW\SH.DUHVXLWDEOHIRUFRQWLQXRXVRSHUDWLRQZLWKWKHPRWRURXWVLGHWKHIOXLG&RROLQJLVHIIHFWHGE\PHDQVRIDLUFRQYHFWLRQ


RI $PDUH[.57


19/86

&RQILJXUDWLRQDQGIXQFWLRQ

)LJ6HFWLRQDOGUDZLQJ &DVLQJZHDUULQJ 'LVFKDUJHQR]]OH 'LVFKDUJHFRYHU 6KDIW %HDULQJEUDFNHW 6XFWLRQQR]]OH ,PSHOOHU 6KDIWVHDO

%HDULQJSXPSHQG %HDULQJPRWRUHQG7KHSXPSLVGHVLJQHGZLWKDQD[LDOIOXLGLQOHWDQGDUDGLDORXWOHW7KHVLWVRQWKHH[WHQGHGPRWRUVKDIW7KHVKDIWUXQVLQFRPPRQEHDULQJV

7KHIOXLGHQWHUVWKHSXPSD[LDOO\YLDWKHVXFWLRQQR]]OHDQGLVDFFHOHUDWHGRXWZDUGE\WKHURWDWLQJLPSHOOHU,QWKHIORZSDVVDJHRIWKHSXPSFDVLQJWKHNLQHWLFHQHUJ\RIWKHIOXLGLVFRQYHUWHGLQWRSUHVVXUHHQHUJ\7KHIOXLGLVSXPSHGWRWKHGLVFKDUJHQR]]OHZKHUHLWOHDYHVWKHSXPS7KHFDVLQJZHDUULQJSUHYHQWVDQ\IOXLGIURPIORZLQJEDFNIURPWKHFDVLQJLQWRWKHVXFWLRQQR]]OH$WWKHUHDUVLGHRIWKHLPSHOOHUWKHVKDIWHQWHUVWKHFDVLQJYLDWKHGLVFKDUJHFRYHU7KHVKDIWSDVVDJHWKURXJKWKHFRYHULVVHDOHGWRZDUGVWKHDWPRVSKHUHZLWKDVKDIWVHDO7KHVKDIWUXQVLQUROOLQJHOHPHQWEHDULQJVDQGZKLFKDUHVXSSRUWHGE\DEHDULQJEUDFNHWFRQQHFWHGWRWKHSXPSFDVLQJDQGRUGLVFKDUJHFRYHU

7KHSXPSLVVHDOHGE\WZRELURWDWLRQDOPHFKDQLFDOVHDOVLQWDQGHPDUUDQJHPHQW

$OXEULFDQWUHVHUYRLULQEHWZHHQWKHVHDOVHQVXUHVFRROLQJDQGOXEULFDWLRQRIWKHPHFKDQLFDOVHDOV

6FRSHRIVXSSO\'HSHQGLQJRQWKHPRGHOWKHIROORZLQJLWHPVDUHLQFOXGHGLQWKHVFRSHRIVXSSO\

6WDWLRQDU\ZHWLQVWDOODWLRQLQVWDOODWLRQW\SHV6DQG. 3XPSVHWFRPSOHWHZLWKSRZHUFDEOHV

&ODZZLWKVHDOLQJHOHPHQW2ULQJDQGPRXQWLQJHOHPHQWV

/LIWLQJURSHOLIWLQJFKDLQRUOLIWLQJEDLORSWLRQDO

0RXQWLQJEUDFNHWZLWKPRXQWLQJHOHPHQWV

'HVLJQ)XQFWLRQ

6HDOLQJ


$PDUH[.57 RI


20/86

'XFNIRRWEHQGZLWKPRXQWLQJHOHPHQWV

*XLGHZLUHJXLGHUDLOVDUHQRWLQFOXGHGLQ.6%VVFRSHRIVXSSO\

7UDQVSRUWDEOHZHWLQVWDOOHGPRGHOLQVWDOODWLRQW\SH3 3XPSVHWFRPSOHWHZLWKSRZHUFDEOHV

)RRWSODWHRUSXPSVWRROZLWKPRXQWLQJHOHPHQWV

/LIWLQJURSHOLIWLQJFKDLQRUOLIWLQJEDLORSWLRQDO

$VHSDUDWHQDPHSODWHLVLQFOXGHGLQ.6%VVFRSHRIVXSSO\7KLVQDPHSODWHPXVWEHDWWDFKHGLQDFOHDUO\YLVLEOHSRVLWLRQRXWVLGHWKHSODFHRILQVWDOODWLRQHJDWWKHFRQWUROSDQHOSLSHOLQHRUPRXQWLQJEUDFNHW

'LPHQVLRQVDQGZHLJKWV)RUGLPHQVLRQVDQGZHLJKWVSOHDVHUHIHUWRWKHJHQHUDODUUDQJHPHQWGUDZLQJRXWOLQHGUDZLQJRUGDWDVKHHWRIWKHSXPSVHW


RI $PDUH[.57


21/86

,QVWDOODWLRQDW6LWH 6DIHW\UHJXODWLRQV

,PSURSHULQVWDOODWLRQLQSRWHQWLDOO\H[SORVLYHDWPRVSKHUHV([SORVLRQKD]DUG'DPDJHWRWKHSXPSVHW

&RPSO\ZLWKWKHDSSOLFDEOHORFDOH[SORVLRQSURWHFWLRQUHJXODWLRQV

2EVHUYHWKHLQIRUPDWLRQJLYHQLQWKHGDWDVKHHWDQGRQWKHQDPHSODWHRIWKHSXPSVHW

3HUVRQVLQWKHWDQNGXULQJSXPSRSHUDWLRQ(OHFWULFVKRFN

1HYHUVWDUWXSWKHSXPSVHWZKHQWKHUHDUHSHUVRQVLQWKHWDQN

,PSHUPLVVLEOHVROLGREMHFWVWRROVVFUHZVEROWVRUVLPLODULQWKHSXPSVXPSLQOHWWDQNGXULQJSXPSVWDUWXS3HUVRQDOLQMXU\DQGGDPDJHWRSURSHUW\

&KHFNWKHSXPSVXPSLQOHWWDQNIRULPSHUPLVVLEOHVROLGREMHFWVEHIRUHIORRGLQJDQGUHPRYHLIQHFHVVDU\

&KHFNVWREHFDUULHGRXWSULRUWRLQVWDOODWLRQ &KHFNLQJWKHRSHUDWLQJGDWD%HIRUHLQVWDOOLQJWKHSXPSVHWYHULI\WKDWWKHQDPHSODWHGDWDPDWFKHVWKHGDWDJLYHQLQWKHSXUFKDVHRUGHUDQGWKHVLWHV\VWHPGDWD

3UHSDULQJWKHSODFHRILQVWDOODWLRQ3ODFHRILQVWDOODWLRQIRUVWDWLRQDU\PRGHOV

,QVWDOODWLRQRQPRXQWLQJVXUIDFHVZKLFKDUHXQVHFXUHGDQGFDQQRWVXSSRUWWKHORDG3HUVRQDOLQMXU\RUGDPDJHWRSURSHUW\

8VHDFRQFUHWHRIFRPSUHVVLYHVWUHQJWKFODVV&ZKLFKPHHWVWKHUHTXLUHPHQWVRIH[SRVXUHFODVV;&WR(1

7KHPRXQWLQJVXUIDFHPXVWKDYHVHWDQGPXVWEHFRPSOHWHO\KRUL]RQWDODQGHYHQ

5HIHUWRWKHZHLJKWVLQGLFDWHG

$Q\UHVRQDQFHVDWWKHXVXDOH[FLWDWLRQIUHTXHQFLHV[DQG[URWDWLRQDOIUHTXHQF\URWDWLRQDOQRLVHPXVWEHSUHYHQWHGERWKLQWKHIRXQGDWLRQDQGLQWKHFRQQHFWHGSLSLQJDVVXFKIUHTXHQFLHVPD\FDXVHH[WUHPHYLEUDWLRQV

&KHFNWKHVWUXFWXUDOUHTXLUHPHQWV$OOVWUXFWXUDOZRUNUHTXLUHGPXVWKDYHEHHQSUHSDUHGLQDFFRUGDQFHZLWKWKHGLPHQVLRQVVWDWHGLQWKHRXWOLQHGUDZLQJJHQHUDODUUDQJHPHQWGUDZLQJ

5HVRQDQFHV

,QVWDOODWLRQDW6LWH

$PDUH[.57 RI


22/86

3ODFHRILQVWDOODWLRQIRUWUDQVSRUWDEOHPRGHOV

,QFRUUHFWSRVLWLRQLQJ3HUVRQDOLQMXU\DQGGDPDJHWRSURSHUW\

6HWWKHSXPSVHWGRZQLQDYHUWLFDOSRVLWLRQZLWKWKHPRWRURQWRS

8VHDSSURSULDWHPHDQVWRVHFXUHWKHSXPSVHWDJDLQVWRYHUWXUQLQJDQGWLSSLQJRYHU

5HIHUWRWKHZHLJKWVJLYHQLQWKHGDWDVKHHWRQWKHQDPHSODWH

$Q\UHVRQDQFHVDWWKHXVXDOH[FLWDWLRQIUHTXHQFLHV[DQG[URWDWLRQDOIUHTXHQF\URWDWLRQDOQRLVHPXVWEHSUHYHQWHGERWKLQWKHIRXQGDWLRQDQGLQWKHFRQQHFWHGSLSLQJDVVXFKIUHTXHQFLHVPD\FDXVHH[WUHPHYLEUDWLRQV

&KHFNWKHVWUXFWXUDOUHTXLUHPHQWV$OOVWUXFWXUDOZRUNUHTXLUHGPXVWKDYHEHHQSUHSDUHGLQDFFRUGDQFHZLWKWKHGLPHQVLRQVVWDWHGLQWKHRXWOLQHGUDZLQJJHQHUDODUUDQJHPHQWGUDZLQJ

&KHFNLQJWKHOXEULFDQWOHYHO7KHOXEULFDQWUHVHUYRLUVKDYHEHHQILOOHGZLWKDQHQYLURQPHQWDOO\IULHQGO\QRQWR[LFOXEULFDQWDWWKHIDFWRU\

3RVLWLRQWKHSXPSVHWDVLOOXVWUDWHG

)LJ&KHFNLQJWKHOXEULFDQWOHYHO 8QVFUHZVFUHZSOXJZLWKMRLQWULQJ

7KHOXEULFDQWPXVWEHOHYHOZLWKWKHILOOHURSHQLQJ

,IWKHOXEULFDQWOHYHOLVORZHUILOOWKHOXEULFDQWUHVHUYRLUYLDWKHILOOHURSHQLQJXQWLOWKHUHVHUYRLURYHUIORZV

&ORVHVFUHZSOXJZLWKMRLQWULQJDJDLQ

&KHFNLQJWKHGLUHFWLRQRIURWDWLRQ

3XPSVHWUXQQLQJGU\([SORVLRQKD]DUG

&KHFNWKHGLUHFWLRQRIURWDWLRQRIH[SORVLRQSURRISXPSVHWVRXWVLGHWKHSRWHQWLDOO\H[SORVLYHDWPRVSKHUH

+DQGVRUREMHFWVLQVLGHWKHSXPSFDVLQJ5LVNRILQMXULHVGDPDJHWRWKHSXPS

1HYHULQVHUW\RXUKDQGVRUDQ\RWKHUREMHFWVLQWRWKHSXPS

&KHFNWKDWWKHLQVLGHRIWKHSXPSLVIUHHIURPDQ\IRUHLJQREMHFWV

7DNHVXLWDEOHSUHFDXWLRQVHJZHDUVDIHW\JRJJOHVHWF

5HVRQDQFHV

,QVWDOODWLRQDW6LWH

RI $PDUH[.57


23/86

,PSURSHUSRVLWLRQLQJRISXPSVHWZKHQFKHFNLQJWKHGLUHFWLRQRIURWDWLRQ3HUVRQDOLQMXU\DQGGDPDJHWRSURSHUW\

8VHDSSURSULDWHPHDQVWRVHFXUHWKHSXPSVHWDJDLQVWRYHUWXUQLQJRUWLSSLQJRYHU

3XPSVHWUXQQLQJGU\,QFUHDVHGYLEUDWLRQV'DPDJHWRPHFKDQLFDOVHDOVDQGEHDULQJV

1HYHURSHUDWHWKHSXPSVHWIRUPRUHWKDQVHFRQGVRXWVLGHWKHIOXLGWREHKDQGOHG

7KHSXPSVHWLVFRQQHFWHGWRWKHSRZHUVXSSO\

6WDUWWKHSXPSVHWDQGVWRSLWDJDLQLPPHGLDWHO\WRGHWHUPLQHWKHPRWRUVGLUHFWLRQRIURWDWLRQ

&KHFNWKHGLUHFWLRQRIURWDWLRQ,PSHOOHUURWDWLRQPXVWEHDQWLFORFNZLVHVHHQIURPWKHSXPSPRXWKHQG2Q

VRPHSXPSFDVLQJVWKHGLUHFWLRQRIURWDWLRQLVPDUNHGE\DQDUURZ

)LJ&KHFNLQJWKHGLUHFWLRQRIURWDWLRQ ,IWKHLPSHOOHULVUXQQLQJLQWKHZURQJGLUHFWLRQRIURWDWLRQFKHFNWKHHOHFWULFDO

FRQQHFWLRQRIWKHSXPSDQGWKHFRQWUROV\VWHPLIQHFHVVDU\

'LVFRQQHFWWKHSXPSVHWIURPWKHSRZHUVXSSO\DQGPDNHVXUHLWFDQQRWEHVZLWFKHGRQDFFLGHQWDOO\

,QVWDOOLQJWKHSXPSVHW$OZD\VREVHUYHWKHJHQHUDODUUDQJHPHQWGUDZLQJRXWOLQHGUDZLQJZKHQLQVWDOOLQJWKHSXPSVHW

6WDWLRQDU\ZHWLQVWDOODWLRQ

)DVWHQLQJWKHGXFNIRRWEHQG'HSHQGLQJRQWKHSXPSVL]HWKHGXFNIRRWEHQGLVIDVWHQHGZLWKFKHPLFDODQFKRUVDQGRUIRXQGDWLRQUDLOV

,QVWDOODWLRQDW6LWH

$PDUH[.57 RI


24/86

)DVWHQLQJWKHGXFNIRRWEHQGZLWKFKHPLFDODQFKRUV 3RVLWLRQGXFNIRRWEHQGDWWKHERWWRPRIWKHWDQNVXPS

,QVHUWFKHPLFDODQFKRUV

%ROWGXFNIRRWEHQGWRWKHIORRUXVLQJFKHPLFDODQFKRUV

7DEOH&KHPLFDODQFKRUEROWGLPHQVLRQV%ROWVL]H GR>PP@ W KUHT>PP@ WIL[>PP@ :$)>PP@ 0>PP@ +H[KHDG:$)

>PP@

7RUTXH>1P@

0[ 0[ 0[ 0[

0[

0[

7DEOH&XULQJWLPHVRIPRUWDUFDUWULGJH)ORRUWHPSHUDWXUH &XULQJWLPH>PLQ@WR WR WR !&

&RQQHFWLQJWKHSLSLQJ

,PSHUPLVVLEOHORDGVDFWLQJRQWKHIODQJHRIWKHGXFNIRRWEHQG'DQJHUWROLIHIURPOHDNDJHRIKRWWR[LFFRUURVLYHRUIODPPDEOHIOXLGV

'RQRWXVHWKHSXPSDVDQDQFKRUDJHSRLQWIRUWKHSLSLQJ

$QFKRUWKHSLSHOLQHVLQFORVHSUR[LPLW\WRWKHSXPSDQGFRQQHFWWKHPZLWKRXWWUDQVPLWWLQJDQ\VWUHVVHVRUVWUDLQV

2EVHUYHWKHSHUPLVVLEOHIODQJHORDGV

7DNHDSSURSULDWHPHDVXUHVWRFRPSHQVDWHWKHUPDOH[SDQVLRQRIWKHSLSLQJ

:KHQWKHSXPSVHWLVXVHGIRUGUDLQLQJORZOHYHOEXLOGLQJDUHDVLQVWDOODVZLQJFKHFNYDOYHLQWKHGLVFKDUJHOLQHWRDYRLGEDFNIORZIURPWKHVHZHUV\VWHP

)LJ)DVWHQLQJWKHGXFNIRRWEHQG

WK

UHT

WIL[

:$)0

+H[KHDG:$)

GR

O

)LJ'LPHQVLRQV

0RXQWLQJDFFHVVRULHVRIUHVSHFWLYHPDQXIDFWXUHUUHTXLUHG

,QVWDOODWLRQDW6LWH

RI $PDUH[.57


25/86

&ULWLFDOVSHHG,QFUHDVHGYLEUDWLRQV'DPDJHWRPHFKDQLFDOVHDOVDQGEHDULQJV

,QVWDOODVZLQJFKHFNYDOYHLQORQJHUULVHUSLSHVWRSUHYHQWWKHSXPSIURPH[FHVVLYHUXQQLQJLQUHYHUVH

:KHQILWWLQJDVZLQJFKHFNYDOYHPDNHVXUHWKDWWKHXQLWFDQVWLOOEHYHQWHGSURSHUO\

7DEOH3HUPLVVLEOHIODQJHORDGV1RPLQDOGLDPHWHURIWKHIODQJH )RUFHV>1@ 0RPHQWV>1P@)\ )] )[ ) 0\ 0] 0[ 0

)LWWLQJWKHJXLGHZLUHDUUDQJHPHQW7KHSXPSVHWLVJXLGHGLQWRWKHVXPSRUWDQNDORQJWZRSDUDOOHOWLJKWO\VWUHWFKHGJXLGHZLUHVPDGHRIVWDLQOHVVVWHHO,WDWWDFKHVLWVHOIDXWRPDWLFDOO\WRWKHGXFNIRRWEHQGZKLFKKDVEHHQILWWHGWRWKHIORRU

6KRXOGVLWHFRQGLWLRQVSLSLQJOD\RXWHWFUHTXLUHWKHZLUHWRUXQRIIWKHYHUWLFDOGRQRWH[FHHGDPD[LPXPDQJOHRIWRHQVXUHUHOLDEOHILWWLQJDQGJXLGLQJRIWKHSXPSVHW

)LWWLQJWKHPRXQWLQJEUDFNHW )DVWHQPRXQWLQJEUDFNHWWRWKHHGJHRIWKHWDQNVXPSRSHQLQJZLWKVWHHO

DQFKRUEROWVDQGWLJKWHQWKHDQFKRUEROWVWRDWLJKWHQLQJWRUTXHRI1P

3XVKFODPSLQJSLHFHVWKURXJKWKHKROHVRIVXVSHQVLRQEUDFNHWDQGIDVWHQZLWKQXWV

)DVWHQWKUHDGHGEROWZLWKWKHSUHDVVHPEOHGFODPSLQJDUUDQJHPHQWWRWKHPRXQWLQJEUDFNHWZLWKQXW'RQRWWLJKWHQQXWWRRPXFKLQRUGHUWRDOORZVXIILFLHQWSOD\IRUVXEVHTXHQWO\WHQVLRQLQJWKHJXLGHZLUH

)[

)]

)\

0\

0]

0[

)LJ3HUPLVVLEOHIODQJHORDGV

)LJ)LWWLQJWKHPRXQWLQJEUDFNHW

,QVWDOODWLRQDW6LWH

$PDUH[.57 RI


26/86

,QVHUWLQJWKHJXLGHZLUH /LIWFODPSLQJSLHFHDQGLQVHUWRQHHQGRIWKHJXLGHZLUH

5XQZLUHDURXQGGXFNIRRWEHQGDQGEDFNDJDLQWRVXVSHQVLRQEUDFNHWDQGLQVHUWLWLQWRFODPSLQJSLHFH

0DQXDOO\WHQVLRQZLUHDQGVHFXUHLWE\PHDQVRIKH[DJRQQXWV

3XOOWKHZLUHWDXWE\WLJKWHQLQJKH[DJRQQXWVRQWKHXSSHUVLGHRIWKH

PRXQWLQJEUDFNHW2EVHUYHWKHWDEOH*XLGHZLUHWHQVLRQ

6HFXUHWKHQXWVZLWKDVHFRQGKH[DJRQQXW

7KHORRVHZLUHHQGVDWJXLGHZLUHVXVSHQVLRQEUDFNHWFDQHLWKHUEHWZLVWHGLQWRDULQJRUWKHHQGFDQEHFXWRII$IWHUOHQJWKDGMXVWPHQWWDSHWKHHQGVWRDYRLGIUD\LQJ

$WWDFKKRRNWRPRXQWLQJEUDFNHWIRUDWWDFKLQJWKHOLIWLQJFKDLQURSHDWDODWHUVWDJH

7DEOH*XLGHZLUHWHQVLRQ'1 7LJKWHQLQJWRUTXH0$>1P@

:LUHWHQVLRQLQJIRUFH3>1@

)LWWLQJWKHJXLGHUDLODUUDQJHPHQW7KHSXPSVHWLVJXLGHGLQWRWKHVXPSRUWDQNDORQJWZRYHUWLFDOJXLGHUDLOV,WDWWDFKHVLWVHOIDXWRPDWLFDOO\WRWKHGXFNIRRWEHQGZKLFKKDVEHHQILWWHGWRWKHIORRU

7KHJXLGHUDLOVDUHQRWLQFOXGHGLQ.6%VVFRSHRIVXSSO\6HOHFWJXLGHUDLOPDWHULDOVZKLFKDUHVXLWDEOHIRUWKHIOXLGKDQGOHGRUDVVSHFLILHGE\WKHRSHUDWRU

2EVHUYHWKHIROORZLQJGLPHQVLRQVIRUWKHJXLGHUDLOV

7DEOH*XLGHUDLOGLPHQVLRQV6L]HRIK\GUDXOLFV\VWHP 2XWVLGHGLDPHWHU>PP@ :DOOWKLFNQHVV>PP@

0LQLPXP 0D[LPXP

'1'1 '1'1

)LWWLQJWKHPRXQWLQJEUDFNHW )DVWHQPRXQWLQJEUDFNHWWRWKHHGJHRIWKHVXPSRSHQLQJZLWKVWHHO

DQFKRUEROWVDQGWLJKWHQWKHDQFKRUEROWVWRDWLJKWHQLQJWRUTXHRI1P2EVHUYHWKHKROHSDWWHUQIRUWKHDQFKRUEROWV6HHRXWOLQHGUDZLQJ

)LJ,QVHUWLQJWKHJXLGHZLUH

)LJ)LWWLQJWKHPRXQWLQJEUDFNHW

7R',1RUHTXLYDOHQWVWDQGDUGV

,QVWDOODWLRQDW6LWH

RI $PDUH[.57


27/86

)LWWLQJWKHJXLGHUDLOV,PSURSHULQVWDOODWLRQRIWKHJXLGHUDLOV'DPDJHWRWKHJXLGHUDLODUUDQJHPHQW

$OZD\VDGMXVWWKHJXLGHUDLOVVRWKDWWKH\DUHLQDSHUIHFWO\YHUWLFDOSRVLWLRQ

3ODFHUDLOVRQWRWKHFRQLFDOERVVHVSURYLGHGRQGXFNIRRWEHQGDQGSRVLWLRQYHUWLFDOO\

0DUNWKHOHQJWKRIUDLOVXSWRWKHORZHUHGJHRIWKHPRXQWLQJEUDFNHWWDNLQJLQWRDFFRXQWWKHDGMXVWLQJUDQJHRIWKHVORWWHGKROHVLQPRXQWLQJEUDFNHW

6KRUWHQUDLOVZLWKDFXWWRWKHSLSHD[LV'HEXUWKHUDLOVLQVLGHDQGRXWVLGH

,QVHUWPRXQWLQJEUDFNHWZLWKHODVWLFVOHHYHVLQWRJXLGHUDLOVXQWLOWKHPRXQWLQJEUDFNHWUHVWVRQWKHUDLOHQGV

7LJKWHQQXWV7KLVSXOOVFODPSLQJVOHHYHVXSZDUGVDQGH[SDQGVVOHHYHVDJDLQVWWKHLQVLGHSLSHGLDPHWHU

/RFNQXWVZLWKDVHFRQGQXWDQGVHFXUHZLWK/RFWLWH

)RULQVWDOODWLRQGHSWKV!PWKHVFRSHRIVXSSO\PD\LQFOXGHEUDFNHWVDVDPLGGOHVXSSRUWIRUWKHJXLGHUDLOV7KHPRXQWLQJEUDFNHWVDOVRVHUYHDVVSDFHUVEHWZHHQWKHWZRJXLGHUDLOV

)LWWLQJWKHPLGGOHVXSSRUW 0HDVXUHWKHLQVLGHGLDPHWHURIWKHJXLGHUDLOV

([SDQGHODVWLFVOHHYHVZLWKFODPSLQJVOHHYHVWRWKHLQVLGHGLDPHWHURIWKHJXLGHUDLOVE\WLJKWHQLQJQXWV

6OLSWKHJXLGHUDLOVRQWRWKHVOHHYHVDQGFKHFNZKHWKHUWKHUHLVDWLJKWILWEHWZHHQWKHJXLGHUDLOVDQGWKHVOHHYHV

6HFXUHWKHIDVWHQHUVZLWKORFNQXWV

3URFHHGWRILWWKHJXLGHUDLOV

3UHSDULQJWKHSXPSVHW)LWWLQJWKHFODZ

)DVWHQFODZWRWKHGLVFKDUJHIODQJHZLWKVWXGVGLVFVDQGQXWV2EVHUYHWKHWLJKWHQLQJWRUTXHV

)LWSURILOHMRLQWRUURXQGFRUGVHDOLQWRWKHJURRYHRIWKHFODZ7KLVZLOOVHDOWKHGXFNIRRWEHQGSXPSFRQQHFWLRQ

)LJ)LWWLQJWKHJXLGHUDLOV

)LJ)LWWLQJWKHPLGGOHVXSSRUW

)LJ)LWWLQJWKHFODZ

,QVWDOODWLRQDW6LWH

$PDUH[.57 RI


28/86

$WWDFKLQJWKHOLIWLQJFKDLQURSH

$WWDFKLQJWKHOLIWLQJFKDLQURSHVWDWLRQDU\ZHWLQVWDOODWLRQ

$WWDFKWKHOLIWLQJFKDLQRUURSHWRWKHOXJH\HEROWEDLODWWKHSXPSVHWRQWKHRSSRVLWHVLGHRIWKHGLVFKDUJHQR]]OH7KLVDWWDFKPHQWSRLQWDFKLHYHVDIRUZDUGLQFOLQDWLRQRIWKHSXPSVHWWRZDUGVWKHGLVFKDUJHQR]]OHZKLFKDOORZVWKHSXPSFODZWRKRRNRQWRWKHGXFNIRRWEHQG

7DEOH7\SHVRIDWWDFKPHQW'UDZLQJ 7\SHRIDWWDFKPHQW

&KDLQDWWDFKHGGLUHFWO\WRWKHPRWRUKRXVLQJ

+H[DJRQVRFNHWKHDGFDSVFUHZ 1XW

/RRSHGOLIWLQJURSH 5RSH

6KDFNOHZLWKOLIWLQJURSHRUFKDLQDWWKHEDLO 6KDFNOH 5RSH &KDLQ +H[DJRQVRFNHWKHDGFDSVFUHZ 1XW

&KDLQDWWDFKHGWRWKHH\HEROWZLWKDVKDFNOH 6KDFNOH &KDLQ

/LIWLQJURSHDWWDFKHGWRWKHEDLO 5RSH


29/86

7UDQVSRUWDEOHZHWLQVWDOODWLRQ)LWWLQJWKHIRRWSODWHRUSXPSVWRRO)LWWKHIRRWSODWHRUSXPSVWRROEHIRUHLQVWDOOLQJWKHSXPS

7LJKWHQWKHVFUHZVDVVSHFLILHGVHHWDEOH7LJKWHQLQJWRUTXHV

$WWDFKLQJWKHOLIWLQJFKDLQURSH $WWDFKWKHOLIWLQJFKDLQRUURSHWRWKHOXJH\HEROWRQWKHGLVFKDUJHQR]]OHVLGH

VHHLOOXVWUDWLRQRQWKHOHIWDQGWDEOH7\SHVRIDWWDFKPHQW

&RQQHFWLQJWKHSLSLQJ7KHGLVFKDUJHQR]]OHVFDQEHFRQQHFWHGWRULJLGRUIOH[LEOHSLSHV

)LJ&RQQHFWLRQRSWLRQV

(OHFWULFDOV\VWHP ,QIRUPDWLRQIRUSODQQLQJWKHFRQWUROV\VWHP)RUWKHHOHFWULFDOFRQQHFWLRQRIWKHSXPSVHWREVHUYHWKHZLULQJGLDJUDPVFRQWDLQHGLQWKH$QQH[7KHSXPSVHWLVVXSSOLHGZLWKSRZHUFDEOHVLWLVZLUHGIRU'2/VWDUWLQJ6WDUGHOWDVWDUWLQJLVDOVRSRVVLEOH

:KHQOD\LQJDFDEOHEHWZHHQWKHFRQWUROV\VWHPDQGWKHSXPSVHWVFRQQHFWLRQSRLQWPDNHVXUHWKDWWKHQXPEHURIFRUHVLVVXIILFLHQWIRUWKHVHQVRUV$PLQLPXPFURVVVHFWLRQRIPPLVUHTXLUHG

7KHPRWRUVFDQEHFRQQHFWHGWRHOHFWULFDOORZYROWDJHQHWZRUNVZLWKQRPLQDOYROWDJHVDQGYROWDJHWROHUDQFHVDVSHU,(&RURWKHUQHWZRUNVRUVXSSO\V\VWHPVZLWKUDWHGYROWDJHWROHUDQFHVRIPD[

2YHUORDGSURWHFWLRQ 3URWHFWWKHSXPSVHWDJDLQVWRYHUORDGLQJE\XVLQJDWKHUPDOWLPHODJRYHUORDG

SURWHFWLRQGHYLFHLQDFFRUGDQFHZLWK,(&DQGORFDOUHJXODWLRQV

6HWWKHRYHUORDGSURWHFWLRQGHYLFHWRWKHUDWHGFXUUHQWVSHFLILHGRQWKHQDPHSODWH

/HYHOFRQWURO


1HYHUDOORZDQH[SORVLRQSURRISXPSVHWWRUXQGU\

)LJ$WWDFKLQJWKHOLIWLQJFKDLQURSH

,QVWDOODWLRQDW6LWH

$PDUH[.57 RI


30/86

)OXLGOHYHOEHORZWKHVSHFLILHGPLQLPXP'DPDJHWRWKHSXPSVHWE\FDYLWDWLRQ

1HYHUDOORZWKHIOXLGOHYHOWRGURSEHORZWKHVSHFLILHGPLQLPXP

$XWRPDWLFRSHUDWLRQRIWKHSXPSVHWLQDWDQNUHTXLUHVWKHXVHRIOHYHOFRQWURO

HTXLSPHQW2EVHUYHWKHPLQLPXPIOXLGOHYHO

)UHTXHQF\LQYHUWHURSHUDWLRQ7KHSXPSVHWLVVXLWDEOHIRUIUHTXHQF\LQYHUWHURSHUDWLRQDVSHU,(&

2SHUDWLRQRXWVLGHWKHSHUPLWWHGIUHTXHQF\UDQJH([SORVLRQKD]DUG

1HYHURSHUDWHDQH[SORVLRQSURRISXPSVHWRXWVLGHWKHVSHFLILHGUDQJH

,QFRUUHFWVHWWLQJRIIUHTXHQF\LQYHUWHUFXUUHQWOLPLW([SORVLRQKD]DUG

6HWWKHFXUUHQWOLPLWWRPD[WLPHVWKHUDWHGFXUUHQWLQGLFDWHGRQWKHQDPHSODWH

:KHQVHOHFWLQJDIUHTXHQF\LQYHUWHUFKHFNWKHIROORZLQJGHWDLOV

'DWDSURYLGHGE\WKHPDQXIDFWXUHU

(OHFWULFDOGDWDRIWKHSXPSVHWSDUWLFXODUO\WKHUDWHGFXUUHQW

(QVXUHVKRUWVWDUWUDPSVPD[V

2QO\VWDUWVSHHGFRQWUROOHGRSHUDWLRQDIWHUPLQXWHVDWWKHHDUOLHVW3XPSVWDUWXSZLWKORQJVWDUWUDPSVDQGORZIUHTXHQF\PD\FDXVHFORJJLQJ

2EVHUYHWKHIROORZLQJOLPLWVZKHQRSHUDWLQJWKHSXPSVHWYLDIUHTXHQF\LQYHUWHU

2QO\XWLOLVHXSWRRIWKHPRWRUUDWLQJ3LQGLFDWHGRQWKHQDPHSODWH

)UHTXHQF\UDQJH+]

)UHTXHQF\LQYHUWHURSHUDWLRQSURGXFHV5),HPLVVLRQVZKRVHOHYHOYDULHVGHSHQGLQJRQWKHLQYHUWHUXVHGW\SHLQWHUIHUHQFHVXSSUHVVLRQPDNH7RSUHYHQWWKHGULYHV\VWHPFRQVLVWLQJRIDVXEPHUVLEOHPRWRUDQGDIUHTXHQF\LQYHUWHUIURPH[FHHGLQJWKHOLPLWVVWLSXODWHGLQ(1DOZD\VREVHUYHWKH(0&LQIRUPDWLRQSURYLGHGE\WKHLQYHUWHUPDQXIDFWXUHU,IWKHLQYHUWHUPDQXIDFWXUHUUHFRPPHQGVDVKLHOGHGSRZHUFDEOHPDNHVXUHWRXVHDSXPSVHWZLWKDVKLHOGHGSRZHUFDEOH

7KHSXPSVHWJHQHUDOO\PHHWVWKHLQWHUIHUHQFHLPPXQLW\UHTXLUHPHQWVWR(1)RUPRQLWRULQJWKHVHQVRUVLQVWDOOHGWKHRSHUDWRUPXVWHQVXUHVXIILFLHQWLQWHUIHUHQFHLPPXQLW\E\DSSURSULDWHO\VHOHFWLQJDQGOD\LQJWKHFDEOHVLQWKHSODQW1RPRGLILFDWLRQVDUHUHTXLUHGRQWKHSRZHUFRQWUROFDEOHRIWKHSXPSVHW6XLWDEOHDQDO\VLQJGHYLFHVPXVWEHVHOHFWHG7RPRQLWRUWKHOHDNDJHVHQVRULQVLGHWKHPRWRULWLVUHFRPPHQGHGWRXVHDVSHFLDOUHOD\DYDLODEOHIURP.6%

6HOHFWLRQ

6WDUWXS

2SHUDWLRQ

(OHFWURPDJQHWLFFRPSDWLELOLW\

,QWHUIHUHQFHLPPXQLW\

,QVWDOODWLRQDW6LWH

RI $PDUH[.57


31/86

6HQVRUV

2SHUDWLQJDQLQFRPSOHWHO\FRQQHFWHGSXPSVHW([SORVLRQKD]DUG'DPDJHWRWKHSXPSVHW

1HYHUVWDUWXSDSXPSVHWZLWKLQFRPSOHWHO\FRQQHFWHGSRZHUFDEOHVRUQRQRSHUDWLRQDOPRQLWRULQJGHYLFHV

,QFRUUHFWFRQQHFWLRQ'DPDJHWRWKHVHQVRUV

2EVHUYHWKHOLPLWVVWDWHGLQWKHIROORZLQJVHFWLRQVRIWKLVPDQXDOZKHQFRQQHFWLQJWKHVHQVRUV

7KHSXPSVHWLVHTXLSSHGZLWKVHQVRUVGHVLJQHGWRSUHYHQWKD]DUGVDQGGDPDJHWRWKHSXPSVHW

0HDVXULQJWUDQVGXFHUVDUHUHTXLUHGIRUDQDO\VLQJWKHVHQVRUVLJQDOVVXSSOLHG6XLWDEOH

GHYLFHVIRU9aFDQEHVXSSOLHGE\.6%

5HOLDEOHDQGVDIHRSHUDWLRQRIWKHSXPSZLWKLQWKHVFRSHRIRXUZDUUDQW\LVRQO\SRVVLEOHLIWKHVHQVRUVLJQDOVDUHSURSHUO\DQDO\VHGDVVWLSXODWHGLQWKHVHRSHUDWLQJLQVWUXFWLRQV

$OOVHQVRUVDUHORFDWHGLQVLGHWKHSXPSVHWDQGDUHFRQQHFWHGWRWKHSRZHUFDEOH)RULQIRUPDWLRQRQZLULQJDQGFRUHPDUNLQJSOHDVHUHIHUWRWKHZLULQJGLDJUDPV7KHLQGLYLGXDOVHQVRUVDQGWKHOLPLWYDOXHVWREHVHWDUHGHVFULEHGLQWKHIROORZLQJVHFWLRQV

0RWRUWHPSHUDWXUH,QVWDOODWLRQW\SHV3DQG6

,QVXIILFLHQWFRROLQJ([SORVLRQKD]DUG:LQGLQJGDPDJH

1HYHURSHUDWHDSXPSVHWZLWKRXWRSHUDWLRQDOWHPSHUDWXUHPRQLWRULQJ

)RUH[SORVLRQSURRISXPSVHWVXVHDWKHUPLVWRUWULSSLQJXQLWZLWKPDQXDOUHVHWZKLFKLV$7(;DSSURYHGIRUPRQLWRULQJWKHWHPSHUDWXUHRIH[SORVLRQSURRIPRWRUVZLWKIODPHSURRIHQFORVXUH([GW\SHRISURWHFWLRQ

7KHSXPSVHWIHDWXUHVGRXEOHPRQLWRULQJRIWKHZLQGLQJWHPSHUDWXUH7ZRELPHWDO

VZLWFKHVWHUPLQDOVDQGPD[9a$VHUYHDVWHPSHUDWXUHFRQWUROGHYLFHVZKLFKRSHQZKHQWKHZLQGLQJWHPSHUDWXUHLVWRRKLJK7ULSSLQJPXVWUHVXOWLQWKHSXPSVHWFXWWLQJRXW$XWRPDWLFUHVWDUWLVSHUPLVVLEOH

)RUH[SORVLRQSURRISXPSVHWVWKHWKUHHDGGLWLRQDOVHULHVFRQQHFWHG37&WKHUPLVWRUVZLWKWHUPLQDOVDQGPXVWEHXVHG7KH\PXVWEHFRQQHFWHGWRDWKHUPLVWRUWULSSLQJXQLWZLWKPDQXDOUHVHWDQG$7(;DSSURYDOIRUPRQLWRULQJWKHWHPSHUDWXUHRIH[SORVLRQSURRIPRWRUVZLWKIODPHSURRIHQFORVXUH([GW\SHRISURWHFWLRQ

,QVWDOODWLRQDW6LWH

$PDUH[.57 RI


32/86

,QVWDOODWLRQW\SH.

,QVXIILFLHQWFRROLQJ([SORVLRQKD]DUG:LQGLQJGDPDJH

1HYHURSHUDWHDSXPSVHWZLWKRXWRSHUDWLRQDOWHPSHUDWXUHPRQLWRULQJ )RUH[SORVLRQSURRISXPSVHWVXVHDWKHUPLVWRUWULSSLQJXQLWZLWKPDQXDOUHVHW

ZKLFKLV$7(;DSSURYHGIRUPRQLWRULQJWKHWHPSHUDWXUHRIH[SORVLRQSURRIPRWRUVZLWKIODPHSURRIHQFORVXUH([GW\SHRISURWHFWLRQ

7KHPRWRULVPRQLWRUHGE\WKUHHVHULHVFRQQHFWHG37&WKHUPLVWRUVZLWKWHUPLQDOVDQG7ULSSLQJPXVWUHVXOWLQWKHSXPSVHWFXWWLQJRXW$XWRPDWLFUHVWDUWLVQRWSHUPLWWHG2QH[SORVLRQSURRISXPSVHWVWKH\PXVWEHFRQQHFWHGWRDWKHUPLVWRUWULSSLQJXQLWZLWKPDQXDOUHVHWDQG$7(;DSSURYDOIRUPRQLWRULQJWKHWHPSHUDWXUHRIH[SORVLRQSURRIPRWRUVLQIODPHSURRIHQFORVXUH([GW\SHRISURWHFWLRQ

/HDNDJHLQVLGHWKHPRWRU3(

.

&RQQHFWLQJWKHHOHFWURGHUHOD\

%

3RVLWLRQRIWKHHOHFWURGHLQWKHPRWRUKRXVLQJ

$QHOHFWURGHILWWHGLQVLGHWKHPRWRUPRQLWRUVWKHZLQGLQJDQGFRQQHFWLRQVSDFHIRUOHDNDJH7KLVHOHFWURGHPXVWEHFRQQHFWHGWRDQHOHFWURGHUHOD\FRUHLGHQWLILFDWLRQ7ULSSLQJRIWKHHOHFWURGHUHOD\PXVWUHVXOWLQWKHSXPSVHWFXWWLQJRXW

7KHHOHFWURGHUHOD\.PXVWPHHWWKHIROORZLQJUHTXLUHPHQWV

6HQVRUFLUFXLWWR9a

7ULSSLQJFXUUHQWWRP$HTXLYDOHQWWRDWULSSLQJUHVLVWDQFHRIWRN

/HDNDJHDWWKHPHFKDQLFDOVHDORQO\IRUSXPSVHWVZLWKUHLQIRUFHGEHDULQJV7KHFKDPEHUIRUPHFKDQLFDOVHDOOHDNDJHLVHTXLSSHGZLWKDIORDWVZLWFKFRUHLGHQWLILFDWLRQDQG7KHFRQWDFWPD[LPXP9a$RSHQVZKHQOHDNDJHLVGHWHFWHGLQWKHOHDNDJHFKDPEHU2SHQLQJRIWKHFRQWDFWVKDOOWULJJHUDQDODUPVLJQDO

)LJ)ORDWVZLWFK

,QVWDOODWLRQDW6LWH

RI $PDUH[.57


33/86

%HDULQJWHPSHUDWXUH$VDQRSWLRQWKHSXPSVHWFDQEHVXSSOLHGZLWKWHPSHUDWXUHPRQLWRULQJLQWKHDUHDRIWKHSXPSHQGEHDULQJV&KHFNLQWKHGDWDVKHHWZKHWKHUWKHSXPSVHWLVHTXLSSHGZLWKEHDULQJWHPSHUDWXUHPRQLWRULQJ

7KHEHDULQJWHPSHUDWXUHVHQVRULVD37UHVLVWDQFHWKHUPRPHWHU,WPXVWEHFRQQHFWHGWRDWHPSHUDWXUHFRQWUROGHYLFHZLWKD37LQSXWDQGVHSDUDWHRXWSXWVIRUWZRGLIIHUHQWVZLWFKLQJSRLQWVVHQVRUFLUFXLWPD[LPXP9P$

6HWWKHIROORZLQJOLPLWV

$OHUWDW&

&XWRXWRIWKHSXPSVHWDW&

&RQQHFWLRQWRSRZHUVXSSO\

:RUNRQWKHSXPSVHWE\XQTXDOLILHGSHUVRQQHO'DQJHURIGHDWKIURPHOHFWULFVKRFN

$OZD\VKDYHWKHHOHFWULFDOFRQQHFWLRQVLQVWDOOHGE\DWUDLQHGDQGTXDOLILHGHOHFWULFLDQ

2EVHUYHUHJXODWLRQV,(&DQGIRUH[SORVLRQSURRIPRGHOV(1

,QFRUUHFWFRQQHFWLRQWRWKHPDLQV'DPDJHWRWKHPDLQVQHWZRUNVKRUWFLUFXLW

2EVHUYHWKHWHFKQLFDOVSHFLILFDWLRQVRIWKHORFDOHQHUJ\VXSSO\FRPSDQLHV

,PSURSHUURXWLQJRISRZHUFDEOH'DPDJHWRWKHSRZHUFDEOHV

1HYHUPRYHWKHSRZHUFDEOHVDWWHPSHUDWXUHVEHORZ

1HYHUNLQNRUFUXVKWKHSRZHUFDEOHV

1HYHUOLIWWKHSXPSVHWE\WKHSRZHUFDEOHV

$GMXVWWKHOHQJWKRIWKHSRZHUFDEOHVWRWKHVLWHUHTXLUHPHQWV

0RWRURYHUORDG'DPDJHWRWKHPRWRU

3URWHFWWKHPRWRUE\DWKHUPDOWLPHODJRYHUORDGSURWHFWLRQGHYLFHLQDFFRUGDQFHZLWK,(&DQGORFDOUHJXODWLRQV

)RUFRQQHFWLRQWRSRZHUVXSSO\REVHUYHWKHZLULQJGLDJUDPVLQWKH$QQH[DQGWKHLQIRUPDWLRQRQSODQQLQJWKHFRQWUROV\VWHP

7KHSXPSVHWLVVXSSOLHGFRPSOHWHZLWKSRZHUFDEOH$OZD\VFRQQHFWDOOPDUNHGFRUHV

,QFRUUHFWFRQQHFWLRQ([SORVLRQKD]DUG

7KHFRQQHFWLRQSRLQWRIWKHFDEOHHQGVPXVWEHORFDWHGRXWVLGHWKHSRWHQWLDOO\H[SORVLYHDWPRVSKHUHRULQVLGHHOHFWULFDOHTXLSPHQWDSSURYHGWRHTXLSPHQWFDWHJRU\,,*

,QVWDOODWLRQDW6LWH

$PDUH[.57 RI


34/86

2SHUDWLQJDQLQFRPSOHWHO\FRQQHFWHGSXPSVHW([SORVLRQKD]DUG'DPDJHWRWKHSXPSVHW

1HYHUVWDUWXSDSXPSVHWZLWKLQFRPSOHWHO\FRQQHFWHGSRZHUFDEOHVRUQRQRSHUDWLRQDOPRQLWRULQJGHYLFHV

&RQQHFWLRQRIGDPDJHGSRZHUFDEOHV'DQJHURIGHDWKIURPHOHFWULFVKRFN

&KHFNWKHSRZHUFDEOHVIRUGDPDJHEHIRUHFRQQHFWLQJWKHPWRWKHSRZHUVXSSO\

1HYHUFRQQHFWGDPDJHGSRZHUFDEOHV

)ORZLQGXFHGPRWLRQ'DPDJHWRWKHSRZHUFDEOH

5XQWKHSRZHUFDEOHXSZDUGVZLWKRXWVODFN

5XQWKHSRZHUFDEOHVXSZDUGVZLWKRXWVODFNDQGIDVWHQWKHP

2QO\UHPRYHWKHSURWHFWLYHFDSVIURPWKHSRZHUFDEOHVLPPHGLDWHO\EHIRUHFRQQHFWLQJWKHFDEOHV

,IQHFHVVDU\DGMXVWWKHOHQJWKRIWKHSRZHUFDEOHVWRWKHVLWHUHTXLUHPHQWV

$IWHUVKRUWHQLQJWKHFDEOHVFRUUHFWO\UHDIIL[WKHPDUNLQJVRQWKHLQGLYLGXDOFRUHVDWWKHFDEOHHQGV

7KHSXPSVHWGRHVQRWKDYHDQH[WHUQDO3(FRQQHFWLRQULVNRIFRUURVLRQ

,QFRUUHFWZLULQJ([SORVLRQKD]DUG

([SORVLRQSURRISXPSVHWVLQVWDOOHGLQDWDQNPXVWQHYHUEHUHWURILWWHGZLWKDQH[WHUQDOSRWHQWLDOHTXDOLVDWLRQFRQQHFWLRQ

7RXFKLQJWKHSXPSVHWGXULQJRSHUDWLRQ(OHFWULFVKRFN

0DNHVXUHWKDWWKHSXPSVHWFDQQRWEHWRXFKHGGXULQJRSHUDWLRQ

)LJ)DVWHQLQJWKHSRZHUFDEOHV3RWHQWLDOHTXDOLVDWLRQ

,QVWDOODWLRQDW6LWH

RI $PDUH[.57


35/86

&RPPLVVLRQLQJ6WDUWXS6KXWGRZQ &RPPLVVLRQLQJVWDUWXS 3UHUHTXLVLWHVIRUFRPPLVVLRQLQJVWDUWXS%HIRUHFRPPLVVLRQLQJVWDUWLQJXSWKHSXPSVHWPDNHVXUHWKDWWKHIROORZLQJFRQGLWLRQVDUHPHW

7KHSXPSVHWKDVEHHQSURSHUO\FRQQHFWHGWRWKHSRZHUVXSSO\DQGLVHTXLSSHGZLWKDOOSURWHFWLRQGHYLFHV

7KHSXPSKDVEHHQSULPHGZLWKWKHIOXLGWREHKDQGOHG

7KHGLUHFWLRQRIURWDWLRQKDVEHHQFKHFNHG

7KHOXEULFDQWKDVEHHQFKHFNHG

$IWHUSURORQJHGVKXWGRZQRIWKHSXPSVHWWKHUHTXLUHGDFWLYLWLHVKDYHEHHQFDUULHGRXW



6WDUWXS



5HVWDUWLQJZKLOHPRWRULVVWLOOUXQQLQJGRZQ'DPDJHWRWKHSXPSVHW

'RQRWUHVWDUWWKHSXPSVHWEHIRUHLWKDVFRPHWRDVWDQGVWLOO

1HYHUVWDUWXSWKHSXPSVHWZKLOHWKHSXPSLVUXQQLQJLQUHYHUVH

7KHIOXLGOHYHOLVVXIILFLHQWO\KLJK

3XPSVWDUWXSDJDLQVWDFORVHGVKXWRIIHOHPHQW,QFUHDVHGYLEUDWLRQV'DPDJHWRPHFKDQLFDOVHDOVDQGEHDULQJV

1HYHURSHUDWHWKHSXPSVHWDJDLQVWDFORVHGVKXWRIIHOHPHQW

)XOO\RSHQWKHGLVFKDUJHOLQHVKXWRIIHOHPHQWLIDQ\

6WDUWXSWKHSXPSVHW

&RPPLVVLRQLQJ6WDUWXS6KXWGRZQ

$PDUH[.57 RI


36/86

2SHUDWLQJOLPLWV

1RQFRPSOLDQFHZLWKRSHUDWLQJOLPLWV'DPDJHWRWKHSXPSVHW

&RPSO\ZLWKWKHRSHUDWLQJGDWDLQGLFDWHGLQWKHGDWDVKHHW

$YRLGRSHUDWLRQDJDLQVWDFORVHGVKXWRIIHOHPHQW

1HYHURSHUDWHDQH[SORVLRQSURRISXPSVHWDWDPELHQWDQGIOXLGWHPSHUDWXUHVH[FHHGLQJWKRVHVSHFLILHGLQWKHGDWDVKHHWRURQWKHQDPHSODWH

1HYHURSHUDWHWKHSXPSVHWRXWVLGHWKHOLPLWVVSHFLILHGEHORZ

)UHTXHQF\RIVWDUWV([FHVVLYHIUHTXHQF\RIVWDUWV5LVNRIGDPDJHWRWKHPRWRU

1HYHUH[FHHGWKHVSHFLILHGIUHTXHQF\RIVWDUWV

7RSUHYHQWKLJKWHPSHUDWXUHLQFUHDVHVLQWKHPRWRUDQGH[FHVVLYHORDGVRQWKHPRWRUVHDOHOHPHQWVDQGEHDULQJVWKHVZLWFKLQJIUHTXHQF\VKDOOQRWH[FHHGWKHIROORZLQJQXPEHURIVWDUWXSVSHUKRXU

7DEOH)UHTXHQF\RIVWDUWV0RWRUUDWLQJ>N:@ 0D[LPXP1RRIVWDUWV>6WDUWVKRXU@

!

7KHVHYDOXHVDSSO\WRPDLQVVWDUWXS'2/RUZLWKVWDUGHOWDFRQWDFWRUDXWRWUDQVIRUPHUVRIWVWDUWHU7KHOLPLWGRHVQRWDSSO\WRIUHTXHQF\LQYHUWHURSHUDWLRQ

5HVWDUWLQJZKLOHPRWRULVVWLOOUXQQLQJGRZQ'DPDJHWRWKHSXPSVHW

'RQRWUHVWDUWWKHSXPSVHWEHIRUHLWKDVFRPHWRDVWDQGVWLOO

1HYHUVWDUWXSWKHSXPSVHWZKLOHWKHSXPSLVUXQQLQJLQUHYHUVH

6XSSO\YROWDJH

1RQFRPSOLDQFHZLWKSHUPLVVLEOHVXSSO\YROWDJHWROHUDQFHV([SORVLRQKD]DUG

1HYHURSHUDWHDQH[SORVLRQSURRISXPSVHWRXWVLGHWKHVSHFLILHGUDQJH

7KHPD[LPXPSHUPLVVLEOHVXSSO\YROWDJHGHYLDWLRQLVIRUH[SORVLRQSURRISXPSVHWVRIWKHUDWHGYROWDJH7KHYROWDJHGLIIHUHQFHEHWZHHQWKHLQGLYLGXDOSKDVHVPXVWQRWH[FHHG


RI $PDUH[.57


37/86

)UHTXHQF\LQYHUWHURSHUDWLRQ

2SHUDWLRQRXWVLGHWKHSHUPLWWHGIUHTXHQF\UDQJH([SORVLRQKD]DUG

1HYHURSHUDWHH[SORVLRQSURRISXPSVHWVRXWVLGHWKHVSHFLILHGUDQJH

)UHTXHQF\LQYHUWHURSHUDWLRQRIWKHSXPSVHWLVSHUPLVVLEOHLQWKHIUHTXHQF\UDQJHIURPWR+]

3XPSLQJVROLGVODGHQIOXLGVDWUHGXFHGVSHHG,QFUHDVHGZHDUDQGFORJJLQJ

1HYHURSHUDWHWKHSXPSVHWZLWKIORZYHORFLWLHVEHORZPVLQKRUL]RQWDOSLSHVDQGPVLQYHUWLFDOSLSHV

)OXLGKDQGOHG

7HPSHUDWXUHRIWKHIOXLGKDQGOHG7KHSXPSVHWLVGHVLJQHGIRUWUDQVSRUWLQJOLTXLGV7KHSXPSVHWLVQRWRSHUDWLRQDOXQGHUIUHH]LQJFRQGLWLRQV

'DQJHURIIURVWIUHH]LQJ'DPDJHWRWKHSXPSVHW

'UDLQWKHSXPSVHWRUSURWHFWLWDJDLQVWIUHH]LQJ

5HIHUWRWKHPD[LPXPSHUPLVVLEOHIOXLGDQGDPELHQWWHPSHUDWXUHRQWKHQDPHSODWHDQGLQWKHGDWDVKHHW

0LQLPXPIOXLGOHYHO


1HYHUDOORZDQH[SORVLRQSURRISXPSVHWWRUXQGU\

)OXLGOHYHOEHORZWKHVSHFLILHGPLQLPXP'DPDJHWRWKHSXPSVHWE\FDYLWDWLRQ

1HYHUDOORZWKHIOXLGOHYHOWRGURSEHORZWKHVSHFLILHGPLQLPXP

3XPSVHWVLQVWDOODWLRQW\SHV3DQG67KHSXPSVHWLVGHVLJQHGIRUFRQWLQXRXVO\VXEPHUJHGRSHUDWLRQ7KLVFRQGLWLRQKDVWREHIXOILOOHGIRUWKHPRWRUWREHFRROHGVXIILFLHQWO\

7KHSXPSVHWLVUHDG\IRURSHUDWLRQDVVRRQDVWKHPRWRULVIXOO\VXEPHUJHGGLPHQVLRQ$([DFWGLPHQVLRQVVHHJHQHUDODUUDQJHPHQWGUDZLQJRXWOLQHGUDZLQJ

7KHSXPSFDQEHRSHUDWHGDWDORZHUIOXLGOHYHOIRUVKRUWSHULRGV,IWKHPRWRULVQRWVXIILFLHQWO\FRROHGDQLQWHUQDOWHPSHUDWXUHPRQLWRULQJGHYLFHZLOOWULSWKHSXPSVHWDQGDXWRPDWLFDOO\UHVWDUWLWDIWHUWKHPRWRUKDVFRROHGGRZQ7KHIOXLGOHYHOPXVWQRWGURSEHORZWKHVSHFLILHGPLQLPXPGLPHQVLRQ%([DFWGLPHQVLRQVVHHJHQHUDODUUDQJHPHQWGUDZLQJRXWOLQHGUDZLQJ

5HDG\IRURSHUDWLRQ


$PDUH[.57 RI


38/86

$ $% %

)LJ0LQLPXPOHYHORIIOXLGKDQGOHG&RPSOLDQFHZLWKGLPHQVLRQ%GRHVQRWJXDUDQWHHWURXEOHIUHHRSHUDWLRQRIWKHSXPSVHW'HSHQGLQJRQWKHSXPSVGXW\SRLQWKLJKHUIOXLGOHYHOVPD\EHUHTXLUHG2EVHUYHWKH136+YDOXHVLQGLFDWHGLQWKHFKDUDFWHULVWLFFXUYHVHHK\GUDXOLFFKDUDFWHULVWLF

FXUYHV

3XPSVHWVLQVWDOODWLRQW\SH.7KHSXPSVHWLVVXLWDEOHIRUFRQWLQXRXVRSHUDWLRQZLWKWKHPRWRURXWVLGHWKHIOXLG7KHSXPSVHWLVUHDG\IRURSHUDWLRQZKHQWKHPLQLPXPIOXLGOHYHOKDVEHHQUHDFKHGGLPHQVLRQ%([DFWGLPHQVLRQVVHHJHQHUDODUUDQJHPHQWGUDZLQJRXWOLQHGUDZLQJ

&RPSOLDQFHZLWKGLPHQVLRQ%GRHVQRWJXDUDQWHHWURXEOHIUHHRSHUDWLRQRIWKHSXPSVHW'HSHQGLQJRQWKHSXPSVGXW\SRLQWKLJKHUIOXLGOHYHOVPD\EHUHTXLUHG2EVHUYHWKH136+YDOXHVLQGLFDWHGLQWKHFKDUDFWHULVWLFFXUYHVHHK\GUDXOLFFKDUDFWHULVWLF

FXUYHV

'HQVLW\RIWKHIOXLGKDQGOHG7KHSRZHULQSXWRIWKHSXPSLQFUHDVHVLQSURSRUWLRQWRWKHGHQVLW\RIWKHIOXLGKDQGOHG

,PSHUPLVVLEO\KLJKGHQVLW\RIWKHIOXLGKDQGOHG0RWRURYHUORDG

2EVHUYHWKHLQIRUPDWLRQRQIOXLGGHQVLW\LQGLFDWHGLQWKHGDWDVKHHW

0DNHVXUHWKHPRWRUKDVVXIILFLHQWSRZHUUHVHUYHV

5HDG\IRURSHUDWLRQ


RI $PDUH[.57


39/86

6KXWGRZQVWRUDJHSUHVHUYDWLRQ 0HDVXUHVWREHWDNHQIRUVKXWGRZQ7KHSXPSVHWUHPDLQVLQVWDOOHG

8QLQWHQWLRQDOVWDUWLQJRISXPSVHW5LVNRILQMXU\E\PRYLQJSDUWV

0DNHVXUHWKDWWKHSXPSVHWFDQQRWEHVWDUWHGXSXQLQWHQWLRQDOO\

$OZD\VPDNHVXUHWKHHOHFWULFDOFRQQHFWLRQVDUHGLVFRQQHFWHGEHIRUHFDUU\LQJRXWZRUNRQWKHSXPSVHW

)OXLGVDQGVXSSOLHVSRVLQJDKHDOWKKD]DUGDQGRUKRWIOXLGVRUVXSSOLHV5LVNRILQMXU\

2EVHUYHDOOUHOHYDQWODZV

:KHQGUDLQLQJWKHIOXLGWDNHDSSURSULDWHPHDVXUHVWRSURWHFWSHUVRQVDQGWKHHQYLURQPHQW


'DQJHURIIURVWIUHH]LQJ'DPDJHWRWKHSXPSVHW

,IWKHUHLVDQ\GDQJHURIIURVWIUHH]LQJUHPRYHWKHSXPSVHWIURPWKHIOXLGKDQGOHGDQGFOHDQSUHVHUYHDQGVWRUHLW

0DNHVXUHVXIILFLHQWIOXLGLVDYDLODEOHIRUWKHRSHUDWLRQFKHFNUXQRIWKHSXPSVHW

)RUSURORQJHGVKXWGRZQSHULRGVVWDUWXSWKHSXPSVHWUHJXODUO\RQFHHYHU\

WKUHHPRQWKVIRUDSSUR[LPDWHO\RQHPLQXWH7KLVZLOOSUHYHQWWKHIRUPDWLRQRIGHSRVLWVZLWKLQWKHSXPSDQGWKHSXPSLQWDNHDUHD

7KHSXPSVHWLVUHPRYHGIURPWKHSLSHDQGVWRUHG $OOVDIHW\UHJXODWLRQVDUHREVHUYHG

&OHDQWKHSXPSVHW

3UHVHUYHWKHSXPSVHW

2EVHUYHWKHLQVWUXFWLRQVJLYHQLQ

5HWXUQLQJWRVHUYLFH)RUUHWXUQLQJWKHSXPSVHWWRVHUYLFHREVHUYHWKHVHFWLRQVRQFRPPLVVLRQLQJVWDUWXSDQGRSHUDWLQJOLPLWV

)RUUHWXUQLQJWKHSXPSVHWWRVHUYLFHDIWHUVWRUDJHDOVRIROORZWKHLQVWUXFWLRQVIRUVHUYLFLQJLQVSHFWLRQ

)DLOXUHWRUHLQVWDOORUUHDFWLYDWHSURWHFWLYHGHYLFHV5LVNRISHUVRQDOLQMXU\IURPPRYLQJSDUWVRUHVFDSLQJIOXLG

$VVRRQDVWKHZRUNLVFRPSOHWHUHLQVWDOODQGRUUHDFWLYDWHDQ\VDIHW\UHOHYDQWDQGSURWHFWLYHGHYLFHV


$PDUH[.57 RI


40/86

2QSXPSVSXPSVHWVROGHUWKDQ\HDUVZHUHFRPPHQGUHSODFLQJDOOHODVWRPHUVHDOV


RI $PDUH[.57


41/86

6HUYLFLQJ0DLQWHQDQFH 6DIHW\UHJXODWLRQV7KHRSHUDWRUHQVXUHVWKDWDOOPDLQWHQDQFHLQVSHFWLRQDQGLQVWDOODWLRQZRUNLVSHUIRUPHGE\DXWKRULVHGTXDOLILHGVSHFLDOLVWSHUVRQQHOZKRDUHWKRURXJKO\IDPLOLDUZLWKWKHPDQXDO

6SDUNVSURGXFHGGXULQJVHUYLFLQJZRUN([SORVLRQKD]DUG

2EVHUYHWKHVDIHW\UHJXODWLRQVLQIRUFHDWWKHSODFHRILQVWDOODWLRQ

$OZD\VSHUIRUPPDLQWHQDQFHZRUNRQH[SORVLRQSURRISXPSVHWVRXWVLGHSRWHQWLDOO\H[SORVLYHDWPRVSKHUHV

8QLQWHQWLRQDOVWDUWLQJRISXPSVHW5LVNRILQMXU\E\PRYLQJSDUWV

0DNHVXUHWKDWWKHSXPSVHWFDQQRWEHVWDUWHGXSXQLQWHQWLRQDOO\

$OZD\VPDNHVXUHWKHHOHFWULFDOFRQQHFWLRQVDUHGLVFRQQHFWHGEHIRUHFDUU\LQJRXWZRUNRQWKHSXPSVHW

)OXLGVDQGVXSSOLHVSRVLQJDKHDOWKKD]DUGDQGRUKRWIOXLGVRUVXSSOLHV5LVNRILQMXU\

2EVHUYHDOOUHOHYDQWODZV

:KHQGUDLQLQJWKHIOXLGWDNHDSSURSULDWHPHDVXUHVWRSURWHFWSHUVRQVDQGWKHHQYLURQPHQW


+RWVXUIDFH5LVNRILQMXU\

$OORZWKHSXPSVHWWRFRROGRZQWRDPELHQWWHPSHUDWXUH



,QVXIILFLHQWVWDELOLW\5LVNRIFUXVKLQJKDQGVDQGIHHW

'XULQJDVVHPEO\GLVPDQWOLQJVHFXUHWKHSXPSVHWSXPSSDUWVWRSUHYHQWWLSSLQJRUIDOOLQJRYHU

6SHFLDOUHJXODWLRQVDSSO\WRUHSDLUZRUNRQH[SORVLRQSURRISXPSVHWV0RGLILFDWLRQRUDOWHUDWLRQRIWKHSXPSVHWPD\DIIHFWH[SORVLRQSURWHFWLRQDQGDUHRQO\SHUPLWWHGDIWHUFRQVXOWDWLRQZLWKWKHPDQXIDFWXUHU

6HUYLFLQJ0DLQWHQDQFH

$PDUH[.57 RI


42/86

$UHJXODUPDLQWHQDQFHVFKHGXOHZLOOKHOSDYRLGH[SHQVLYHUHSDLUVDQGFRQWULEXWHWRWURXEOHIUHHUHOLDEOHRSHUDWLRQRIWKHSXPSVHWZLWKDPLQLPXPRIPDLQWHQDQFHH[SHQGLWXUHDQGZRUN

$OOPDLQWHQDQFHVHUYLFHDQGLQVWDOODWLRQZRUNFDQEHFDUULHGRXWE\.6%6HUYLFHRUDXWKRULVHGZRUNVKRSV)LQG\RXUFRQWDFWLQWKHDWWDFKHG$GGUHVVHVERRNOHWRURQ

WKH,QWHUQHWDWZZZNVEFRPFRQWDFW

1HYHUXVHIRUFHZKHQGLVPDQWOLQJDQGUHDVVHPEOLQJWKHSXPSVHW

6HUYLFLQJLQVSHFWLRQ.6%UHFRPPHQGVWKHIROORZLQJVFKHGXOHIRUSXPSVHWPDLQWHQDQFH

7DEOH2YHUYLHZRIPDLQWHQDQFHZRUN0DLQWHQDQFHLQWHUYDO 0DLQWHQDQFHZRUN )RUGHWDLOVVHH(YHU\RSHUDWLQJKRXUV 0HDVXUHWKHLQVXODWLRQUHVLVWDQFH

&KHFNWKHSRZHUFDEOHV

9LVXDOO\LQVSHFWWKHOLIWLQJFKDLQURSH

(YHU\RSHUDWLQJKRXUV

&KHFNWKHVHQVRUV &KHFNWKHPHFKDQLFDOVHDOOHDNDJH

&KDQJHWKHOXEULFDQW

/XEULFDWHWKHEHDULQJV

(YHU\\HDUV *HQHUDORYHUKDXO

,QVSHFWLRQZRUN

&KHFNLQJWKHOLIWLQJFKDLQURSH 7KHSXPSVHWKDVEHHQOLIWHGRXWRIWKHSXPSVXPSDQGFOHDQHG

,QVSHFWWKHOLIWLQJFKDLQURSHDVZHOODVWKHDWWDFKPHQWIRUDQ\YLVLEOHGDPDJH

5HSODFHDQ\GDPDJHGFRPSRQHQWVE\RULJLQDOVSDUHSDUWV

&KHFNLQJWKHSRZHUFDEOHV 7KHSXPSVHWKDVEHHQSXOOHGRXWRIWKHSXPSVXPSDQGFOHDQHG

,QVSHFWWKHSRZHUFDEOHIRUDQ\YLVXDOGDPDJH


7KHSXPSVHWKDVEHHQSXOOHGRXWRIWKHSXPSVXPSDQGFOHDQHG

0HDVXUHWKHUHVLVWDQFHEHWZHHQHDUWKFRQGXFWRUDQGHDUWK7KHUHVLVWDQFHPHDVXUHGPXVWEHOHVVWKDQ


'HIHFWLYHHDUWKFRQGXFWRU(OHFWULFVKRFN

1HYHUVZLWFKRQDSXPSVHWZLWKDGHIHFWLYHHDUWKFRQGXFWRU

0HDVXULQJWKHLQVXODWLRQUHVLVWDQFH0HDVXUHWKHLQVXODWLRQUHVLVWDQFHRIWKHPRWRUZLQGLQJGXULQJDQQXDOPDLQWHQDQFHZRUN

9LVXDOLQVSHFWLRQ

&KHFNLQJWKHHDUWKFRQGXFWRU

$WOHDVWRQFHD\HDU $WOHDVWHYHU\WKUHH\HDUV


RI $PDUH[.57
https://shop.ksb.com/esales/contactfinder/contact.jsp?language=en&country=_Chttps://shop.ksb.com/esales/contactfinder/contact.jsp?language=en&country=_C


43/86

7KHSXPSVHWKDVEHHQGLVFRQQHFWHGLQWKHFRQWUROFDELQHW

8VHDQLQVXODWLRQUHVLVWDQFHPHDVXULQJGHYLFH

7KHUHFRPPHQGHGPHDVXULQJYROWDJHHTXDOV9PD[LPXPSHUPLVVLEOH9

0HDVXUHWKHZLQGLQJDJDLQVWHDUWK7RGRVRFRQQHFWDOOZLQGLQJHQGVWRJHWKHU

0HDVXUHWKHZLQGLQJWHPSHUDWXUHVHQVRUVDJDLQVWHDUWK7RGRVRFRQQHFWDOOFRUHHQGVRIWKHZLQGLQJWHPSHUDWXUHVHQVRUVWRJHWKHUDQGFRQQHFWDOOZLQGLQJHQGVWRHDUWK

7KHLQVXODWLRQUHVLVWDQFHRIWKHFRUHHQGVDJDLQVWHDUWKPXVWQRWEHORZHUWKDQ0,IWKHUHVLVWDQFHPHDVXUHGLVORZHUSRZHUFDEOHDQGPRWRUUHVLVWDQFHPXVWEHPHDVXUHGVHSDUDWHO\'LVFRQQHFWWKHSRZHUFDEOHIURPWKHPRWRUIRUWKLVSXUSRVH

,IWKHLQVXODWLRQUHVLVWDQFHIRURQHRIWKHSRZHUFDEOHVLVEHORZ0WKHFDEOHLVGHIHFWLYHDQGPXVWEHUHSODFHG

,IWKHLQVXODWLRQUHVLVWDQFHYDOXHVPHDVXUHGRQWKHPRWRUDUHWRRORZWKHZLQGLQJLQVXODWLRQLVGHIHFWLYH7KHSXPSVHWPXVWQRWEHUHWXUQHGWRVHUYLFHLQWKLVFDVH

&KHFNLQJWKHVHQVRUV([FHVVLYHWHVWYROWDJH'DPDJHWRWKHVHQVRUV

1HYHUWHVWWKHVHQVRUVZLWKYROWDJHVH[FHHGLQJ9

7KHWHVWVGHVFULEHGEHORZPHDVXUHWKHUHVLVWDQFHDWWKHFRUHHQGVRIWKHFRQWUROFDEOH7KHDFWXDOVHQVRUIXQFWLRQLVQRWWHVWHG

7DEOH5HVLVWDQFHPHDVXUHPHQW0HDVXUHPHQWEHWZHHQWHUPLQDOV 5HVLVWDQFHDQG DQG

,IWKHVSHFLILHGWROHUDQFHVDUHH[FHHGHGGLVFRQQHFWWKHSRZHUFDEOHDWWKHSXPSVHWDQGUHSHDWWKHFKHFNLQVLGHWKHPRWRU,IWKHWROHUDQFHVDUHH[FHHGHGKHUHWRRWKHPRWRUVHFWLRQKDVWREHRSHQHGDQGRYHUKDXOHG7KHWHPSHUDWXUHVHQVRUVDUHILWWHGLQWKHVWDWRUZLQGLQJDQGFDQQRWEHUHSODFHG

7DEOH5HVLVWDQFHRIOHDNDJHVHQVRULQWKHPRWRU0HDVXUHPHQWEHWZHHQWHUPLQDOV 5HVLVWDQFHDQGHDUWKFRQGXFWRU3( !N

/RZHUUHVLVWDQFHYDOXHVVXJJHVWZDWHULQJUHVVLQWRWKHPRWRU,QWKLVFDVHWKHPRWRUPXVWEHRSHQHGDQGRYHUKDXOHG

7DEOH5HVLVWDQFHPHDVXUHPHQWRIWKHIORDWVZLWFK0HDVXUHPHQWEHWZHHQWHUPLQDOV 5HVLVWDQFHDQG

,IWKHUHDGLQJVVXJJHVWDQRSHQVZLWFKFKHFNIRUPHFKDQLFDOVHDOOHDNDJH

7HPSHUDWXUHVHQVRUVLQWKHPRWRUZLQGLQJ

/HFNDJHVHQVRULQWKHPRWRU

)ORDWVZLWFKPHFKDQLFDOVHDOOHDNDJHRQO\SXPSVHWVZLWKUHLQIRUFHGEHDULQJV


$PDUH[.57 RI


44/86

7DEOH5HVLVWDQFHPHDVXUHPHQWRIWKHEHDULQJWHPSHUDWXUHVHQVRU0HDVXUHPHQWEHWZHHQWHUPLQDOV 5HVLVWDQFHDQG

&KHFNLQJWKHPHFKDQLFDOVHDOOHDNDJHRQO\SXPSVHWVZLWKUHLQIRUFHGEHDULQJV





6OLJKWZHDURIWKHPHFKDQLFDOVHDOLVXQDYRLGDEOH7KLVZLOOEHDJJUDYDWHGE\

DEUDVLYHVXEVWDQFHVFRQWDLQHGLQWKHIOXLGKDQGOHG

7KHSXPSVHWKDVEHHQSODFHGLQYHUWLFDOSRVLWLRQ

3ODFHDVXLWDEOHFRQWDLQHUXQGHUVFUHZSOXJ

5HPRYHVFUHZSOXJDQGMRLQWULQJ

'UDLQWKHOHDNDJH

,IPRUHWKDQOLWUHVRIOHDNDJHVKRXOGHVFDSHZHUHFRPPHQGWRUHSODFHWKHPHFKDQLFDOVHDOV

&ORVHVFUHZSOXJZLWKMRLQWULQJDJDLQ

/XEULFDWLRQDQGOXEULFDQWFKDQJH

/XEULFDWLQJWKHPHFKDQLFDOVHDO7KHPHFKDQLFDOVHDOLVVXSSOLHGZLWKOXEULFDQWIURPWKHOXEULFDQWUHVHUYRLU

,QWHUYDOV5HSODFHWKHOXEULFDQWDIWHUHYHU\RSHUDWLQJKRXUVEXWDWOHDVWHYHU\\HDUV

/XEULFDQWTXDOLW\7KHOXEULFDQWUHVHUYRLULVILOOHGDWWKHIDFWRU\ZLWKHQYLURQPHQWDOO\IULHQGO\QRQWR[LFOXEULFDQWRIPHGLFLQDOTXDOLW\LIQRWUHTXHVWHGRWKHUZLVHE\WKHFXVWRPHU7KHIROORZLQJOXEULFDQWVFDQEHXVHGWROXEULFDWHWKHPHFKDQLFDOVHDOV

7DEOH2LOTXDOLW\'HVFULSWLRQ 3URSHUWLHV

3DUDIILQRLORUZKLWHRLO

$OWHUQDWLYH0RWRURLOVRIFODVVHV6$(:WR6$(:

.LQHPDWLFYLVFRVLW\DW& PPV)ODVKSRLQWLQDFFRUGDQFHZLWK

&OHYHODQG&

3RXUSRLQW &

0HUNXU:233%6$62/

0HUNXUZKLWHRLO3KDUPD'($

%HDULQJWHPSHUDWXUHVHQVRU

5HFRPPHQGHGRLOW\SHV


RI $PDUH[.57


45/86

/LTXLGSDUDIILQRLO1R0HUFN

(TXLYDOHQWEUDQGVRIPHGLFLQDOTXDOLW\QRQWR[LF

:DWHUJO\FROPL[

/XEULFDQWFRQWDPLQDWLQJIOXLGKDQGOHG+D]DUGWRSHUVRQVDQGWKHHQYLURQPHQW

8VLQJPDFKLQHRLOLVRQO\SHUPLWWHGLIWKHRLOLVGLVSRVHGRISURSHUO\

/XEULFDQWTXDQWLW\7DEOH/XEULFDQWTXDQWLW\0RWRUVL]HV

6L]H

O O O O O O

UHLQIRUFHGEHDULQJVO

&KDQJLQJWKHOXEULFDQW

/XEULFDQWVSRVLQJDKHDOWKKD]DUGDQGRUKRWOXEULFDQWV+D]DUGWRSHUVRQVDQGWKHHQYLURQPHQW

:KHQGUDLQLQJWKHOXEULFDQWWDNHDSSURSULDWHPHDVXUHVWRSURWHFWSHUVRQVDQG

WKHHQYLURQPHQW :HDUVDIHW\FORWKLQJDQGDSURWHFWLYHPDVNLIUHTXLUHG

&ROOHFWDQGGLVSRVHRIDQ\OXEULFDQWV


([FHVVSUHVVXUHLQWKHOXEULFDQWUHVHUYRLU/LTXLGVSXUWLQJRXWZKHQWKHOXEULFDQWUHVHUYRLULVRSHQHGDWRSHUDWLQJWHPSHUDWXUH

2SHQWKHVFUHZSOXJRIWKHOXEULFDQWUHVHUYRLUYHU\FDUHIXOO\


'UDLQLQJWKHOXEULFDQW


$PDUH[.57 RI


46/86

)LJ'UDLQLQJWKHOXEULFDQW 3ODFHDVXLWDEOHFRQWDLQHUXQGHUWKHVFUHZSOXJ

8QVFUHZVFUHZSOXJRUZLWKMRLQWULQJDQGLIDSSOLFDEOHVFUHZSOXJZLWKMRLQWULQJ'UDLQWKHOXEULFDQW


)LJ)LOOLQJLQWKHOXEULFDQW 3RXUOXEULFDQWLQWRWKHOXEULFDQWILOOHURSHQLQJXQWLOWKHOXEULFDQWUHVHUYRLU

RYHUIORZV

&ORVHVFUHZSOXJDJDLQZLWKDQHZMRLQWULQJ

/XEULFDWLQJWKHUROOLQJHOHPHQWEHDULQJV7KHUROOLQJHOHPHQWEHDULQJVRIWKHSXPSVHWDUHSDFNHGZLWKPDLQWHQDQFHIUHH

JUHDVHZLWKWKHH[FHSWLRQVQRWHGEHORZ2QSXPSVHWVZLWKUHLQIRUFHGEHDULQJVWKHSXPSHQGUROOLQJ

HOHPHQWEHDULQJVFDQEHUHOXEULFDWHGWKH\QHHGWREHUHOXEULFDWHGDVSDUWRIWKHPDLQWHQDQFHZRUN

*UHDVHTXDOLW\7KHIROORZLQJJUHDVHVFDQEHXVHGWROXEULFDWHWKHUROOLQJHOHPHQWEHDULQJV

/LWKLXPVRDSJUHDVHVXLWDEOHIRUKLJKWHPSHUDWXUHV

(66281,5(;1

)$*$5&$12//

7(;$&2+


47/86

'U\UXQQLQJ([SORVLRQKD]DUG

5HOXEULFDWHH[SORVLRQSURRISXPSVHWVRXWVLGHSRWHQWLDOO\H[SORVLYHDWPRVSKHUHV

+DQGVLQVLGHWKHSXPSFDVLQJ5LVNRILQMXULHVGDPDJHWRWKHSXPS

$OZD\VGLVFRQQHFWWKHSXPSVHWIURPWKHSRZHUVXSSO\DQGVHFXUHLWDJDLQVWXQLQWHQWLRQDOVWDUWXSEHIRUHLQVHUWLQJ\RXUKDQGVRURWKHUREMHFWVLQWRWKHSXPS

,QFRPSOHWHUHOXEULFDWLRQ%HDULQJGDPDJH

$OZD\VUHOXEULFDWHWKHEHDULQJVZLWKWKHSXPSVHWLQRSHUDWLRQ

7KHSXPSVHWKDVEHHQSRVLWLRQHGRQDOHYHOVXUIDFH

7KHSXPSVHWLVVHFXUHGDJDLQVWWLSSLQJRYHU

5HPRYHVFUHZSOXJDQGMRLQWULQJ

&RQQHFWWKHSXPSVHWWRWKHSRZHUVXSSO\

3XPSVHWUXQQLQJGU\,QFUHDVHGYLEUDWLRQV'DPDJHWRPHFKDQLFDOVHDOVDQGEHDULQJV

1HYHURSHUDWHWKHSXPSVHWIRUPRUHWKDQVHFRQGVRXWVLGHWKHIOXLGWREHKDQGOHG

6WDUWXSWKHSXPSVHW

)LOOLQJUHDVHYLDOXEULFDWLQJQLSSOH

'LVFRQQHFWWKHSXPSVHWIURPWKHSRZHUVXSSO\DJDLQDQGPDNHVXUHLWFDQQRWEHVZLWFKHGRQXQLQWHQWLRQDOO\

&ORVHVFUHZSOXJZLWKMRLQWULQJ

'UDLQDJHFOHDQLQJ





$OZD\VIOXVKWKHSXPSLILWKDVEHHQXVHGIRUKDQGOLQJQR[LRXVH[SORVLYHKRWRURWKHUKD]DUGRXVIOXLGV

$OZD\VIOXVKDQGFOHDQWKHSXPSEHIRUHVHQGLQJLWWRWKHZRUNVKRS0DNHVXUHWRDGGDFHUWLILFDWHRIGHFRQWDPLQDWLRQ


$PDUH[.57 RI


48/86

'LVPDQWOLQJWKHSXPSVHW *HQHUDOLQIRUPDWLRQ6DIHW\UHJXODWLRQV

8QTXDOLILHGSHUVRQQHOSHUIRUPLQJZRUNRQWKHSXPSVHW5LVNRILQMXU\

$OZD\VKDYHUHSDLUDQGPDLQWHQDQFHZRUNSHUIRUPHGE\VSHFLDOO\WUDLQHGTXDOLILHGSHUVRQQHO

+RWVXUIDFH5LVNRILQMXU\




2EVHUYHWKHJHQHUDOVDIHW\LQVWUXFWLRQVDQGLQIRUPDWLRQ

)RUGLVPDQWOLQJDQGUHDVVHPEO\REVHUYHWKHJHQHUDODVVHPEO\GUDZLQJ

,QWKHHYHQWRIGDPDJH\RXFDQDOZD\VFRQWDFWRXUVHUYLFHVWDII

,QVXIILFLHQWSUHSDUDWLRQRIZRUNRQWKHSXPSVHW5LVNRILQMXU\

3URSHUO\VKXWGRZQWKHSXPSVHW &ORVHWKHVKXWRIIHOHPHQWVLQVXFWLRQDQGGLVFKDUJHOLQH

'UDLQWKHSXPSDQGUHOHDVHWKHSXPSSUHVVXUH

&ORVHDQ\DX[LOLDU\FRQQHFWLRQV


&RPSRQHQWVZLWKVKDUSHGJHV5LVNRIFXWWLQJRUVKHDULQJLQMXULHV

$OZD\VXVHDSSURSULDWHFDXWLRQIRULQVWDOODWLRQDQGGLVPDQWOLQJZRUN

:HDUZRUNJORYHV

3UHSDULQJWKHSXPSVHW 7KHQRWHVDQGVWHSVVWDWHGLQKDYHEHHQREVHUYHG

FDUULHGRXW

'HHQHUJLVHWKHSXPSVHWDQGVHFXUHLWDJDLQVWXQLQWHQWLRQDOVWDUWXS

'UDLQWKHOXEULFDQW

'UDLQWKHOHDNDJHFKDPEHUDQGOHDYHLWRSHQIRUWKHGXUDWLRQRIWKHGLVDVVHPEO\


RI $PDUH[.57


49/86

'LVPDQWOLQJWKHSXPSVHFWLRQ'LVPDQWOHWKHSXPSVHFWLRQLQDFFRUGDQFHZLWKWKHUHOHYDQWJHQHUDODVVHPEO\GUDZLQJ

5HPRYLQJWKHEDFNSXOORXWXQLW 8QVFUHZVFUHZHGFRQQHFWLRQDQGDQGSXOOWKHFRPSOHWHEDFN

SXOORXWXQLWRXWRISXPSFDVLQJ

3ODFHWKHLQDVDIHDQGGU\DVVHPEO\DUHDDQGVHFXUHLWDJDLQVW

WLSSLQJRYHURUUROOLQJRII

5HPRYLQJWKHLPSHOOHU

5HPRYLQJWKHLPSHOOHUZLWKWDSHUHGILW 8QVFUHZVRFNHWKHDGFDSVFUHZZLWKGLVF

&RPSOHWHO\VFUHZWKHJUXEVFUHZLQWRWKHVKDIWWKUHDG

8VHDIRUFLQJVFUHZWRSXOORIILPSHOOHU

7KHIRUFLQJVFUHZLVQRWLQFOXGHGLQWKHVFRSHRIVXSSO\,WFDQEHRUGHUHGVHSDUDWHO\IURP.6%

7DEOH)RUFLQJVFUHZVIRUSXOOLQJRIIWKHLPSHOOHU6L]H ,PSHOOHUW\SH )RUFLQJVFUHZ

7KUHDG &RGH ).6 0 $'6 () 0 $'6 ) 0 $'6 (). 0 $'6 ). 0 $'6 ) 0 $'6 (). 0 $'6 (). 0 $'6 . 0 $'6 . 0 $'6

' 0 $'6 ' 0 $'6 ' 0 $'6 ' 0 $'6 ' 0 $'6 ' 0 $'6 ' 0 $'6 'UHLQIRUFHG

EHDULQJDVVHPEO\0 $'6

'UHLQIRUFHGEHDULQJDVVHPEO\

0 $'6

' 0 $'6 ' 0 $'6 ' 0 $'6

)LJ5HPRYLQJWKHLPSHOOHU


$PDUH[.57 RI


50/86

6L]H ,PSHOOHUW\SH )RUFLQJVFUHZ7KUHDG &RGH

' 0 $'6 ' 0 $'6

5HPRYLQJWKHLPSHOOHUZLWKF\OLQGULFDOLQWHUIHUHQFHILWZLWKNH\ 8QVFUHZVRFNHWKHDGFDSVFUHZDQGLPSHOOHUKXEFDS

5HPRYHWKHLPSHOOHUXVLQJDVSHFLDOLPSHOOHUPRXQWLQJDQGUHPRYDOGHYLFH

5HPRYHNH\

8VLQJDVSHFLDOPRXQWLQJDQGUHPRYDOGHYLFH

)LJ6SHFLDOILWWLQJDQGUHPRYDOWRRO 6FUHZKH[DJRQKHDGEROWLQWRWKHVKDIWHQGWRSUHYHQWDQ\GDPDJHWRWKHVKDIWWKUHDG

6FUHZSDUWLQWRWKHLPSHOOHU

6FUHZWKUHDGHGEROWLQWRSDUWDQGSXOORIIWKHLPSHOOHU

7DEOH6SHFLDOPRXQWLQJDQGUHPRYDOGHYLFHIRUUHPRYLQJWKHLPSHOOHU6L]H ,PSHOOHUW\SH 6SHFLDOPRXQWLQJDQGUHPRYDOGHYLFH

(). $9

. ( $9

'LVPDQWOLQJWKHPHFKDQLFDOVHDO'LVPDQWOHWKHPHFKDQLFDOVHDOLQDFFRUGDQFHZLWKWKHJHQHUDODUUDQJHPHQWGUDZLQJV

)LJ&\OLQGULFDOLQWHUIHUHQFHILW


RI $PDUH[.57


51/86

'LVPDQWOLQJWKHSXPSHQGPHFKDQLFDOVHDO 7KHEDFNSXOORXWXQLWDQGWKHLPSHOOHUKDYHEHHQUHPRYHGDVGHVFULEHGDERYH

3XOOWKHURWDWLQJDVVHPEO\RIPHFKDQLFDOVHDORIIVKDIW

5HPRYHGLVFKDUJHFRYHUIURPEHDULQJEUDFNHW

3XVKWKHVWDWLRQDU\VHDWRIPHFKDQLFDOVHDORXWRIGLVFKDUJHFRYHU

'LVPDQWOLQJWKHPRWRUHQGPHFKDQLFDOVHDO 7KHEDFNSXOORXWXQLWDQGWKHLPSHOOHUKDYHEHHQUHPRYHGDVGHVFULEHGDERYH

5HPRYHWDSHUORFNULQJRUFLUFOLS

3XOOWKHURWDWLQJDVVHPEO\RIPHFKDQLFDOVHDORIIVKDIW

5HPRYLQJWKHZHDUSODWH 7KHEDFNSXOORXWXQLWKDVEHHQVHSDUDWHGIURPWKHSXPSFDVLQJ

7KHLQVLGHRIWKHFDVLQJKDVEHHQFOHDQHG

5HVXOWRIYLVXDOLQVSHFWLRQ7KHZHDUSODWHQHHGVWREHUHSODFHG

2QWUDQVSRUWDEOHPRGHOVVHSDUDWHWKHSXPSFDVLQJIURPWKHSLSLQJ 8QGRKH[DJRQVRFNHWKHDGFDSVFUHZV

5HPRYHZHDUSODWHDQG2ULQJV

'LVPDQWOLQJWKHPRWRUVHFWLRQ6SHFLDOUHJXODWLRQVDSSO\WRUHSDLUZRUNRQH[SORVLRQSURRISXPSVHWV0RGLILFDWLRQVRUDOWHUDWLRQRIWKHSXPSVHWPD\DIIHFWH[SORVLRQSURWHFWLRQDQGDUHRQO\SHUPLWWHGDIWHUFRQVXOWDWLRQZLWKWKHPDQXIDFWXUHU

7KHPRWRUVRIH[SORVLRQSURRISXPSVHWVDUHVXSSOLHGLQIODPHSURRIHQFORVXUHW\SHRISURWHFWLRQ$Q\ZRUNRQWKHPRWRUVHFWLRQZKLFKPD\DIIHFWH[SORVLRQSURWHFWLRQVXFKDVUHZLQGLQJDQGPDFKLQLQJUHSDLUVPXVWEHLQVSHFWHGDQGDSSURYHGE\DQDSSURYHGH[SHUWRUSHUIRUPHGE\WKHPRWRUPDQXIDFWXUHUV1RPRGLILFDWLRQVPXVWEHPDGHWRWKHLQWHUQDOFRQILJXUDWLRQRIWKHPRWRUVSDFH5HSDLUZRUNDWWKHIODPHSURRIMRLQWVPXVWRQO\EHSHUIRUPHGLQDFFRUGDQFHZLWKWKHPDQXIDFWXUHUVLQVWUXFWLRQV5HSDLUWRWKHYDOXHVLQWDEOHVDQGRI(1LVQRWSHUPLWWHG

:KHQGLVPDQWOLQJWKHPRWRUVHFWLRQDQGWKHSRZHUFDEOHVPDNHVXUHWKDWWKHFRUHVWHUPLQDOVDUHFOHDUO\PDUNHGIRUIXWXUHUHDVVHPEO\

5HDVVHPEOLQJWKHSXPSVHW *HQHUDOLQIRUPDWLRQ6DIHW\UHJXODWLRQV



)LJ5HPRYLQJWKHZHDUSODWH


$PDUH[.57 RI


52/86

&RPSRQHQWVZLWKVKDUSHGJHV5LVNRIFXWWLQJRUVKHDULQJLQMXULHV

$OZD\VXVHDSSURSULDWHFDXWLRQIRULQVWDOODWLRQDQGGLVPDQWOLQJZRUN

:HDUZRUNJORYHV

,PSURSHUUHDVVHPEO\'DPDJHWRWKHSXPS

5HDVVHPEOHWKHSXPSVHWLQDFFRUGDQFHZLWKWKHJHQHUDOUXOHVRIVRXQGHQJLQHHULQJSUDFWLFH

8VHRULJLQDOVSDUHSDUWVRQO\

%HIRUHUHDVVHPEOLQJWKHPRWRUVHFWLRQFKHFNWKDWDOOMRLQWVUHOHYDQWWRH[SORVLRQSURWHFWLRQIODPHSDWKVDUHXQGDPDJHG$Q\FRPSRQHQWVZLWKGDPDJHGIODPHSDWKVPXVWEHUHSODFHG5HIHUWRWKH)ODPHSDWKVDQQH[IRUWKHSRVLWLRQRIWKHIODPHSDWKV

$OZD\VUHDVVHPEOHWKHSXPSVHWLQDFFRUGDQFHZLWKWKHFRUUHVSRQGLQJJHQHUDODVVHPEO\GUDZLQJ

2ULQJV

&KHFN2ULQJVIRUDQ\GDPDJHDQGUHSODFHE\QHZ2ULQJVLIUHTXLUHG

1HYHUXVH2ULQJVWKDWKDYHEHHQJOXHGWRJHWKHUIURPPDWHULDOVROGE\WKHPHWUH

$VVHPEO\DGKHVLYHV

$YRLGWKHXVHRIDVVHPEO\DGKHVLYHVLISRVVLEOH

:KHQUHDVVHPEOLQJWKHSXPSVHWWLJKWHQDOOVFUHZVEROWVDVLQGLFDWHG

,QDGGLWLRQVHFXUHDOOVFUHZHGFRQQHFWLRQVFORVLQJRIIWKHIODPHSURRIHQFORVXUHZLWKDWKUHDGORFNLQJDJHQW/RFWLWH7\SH

5HDVVHPEOLQJWKHSXPSVHFWLRQ

,QVWDOOLQJWKHPHFKDQLFDOVHDO2EVHUYHWKHIROORZLQJSRLQWVWRHQVXUHWURXEOHIUHHRSHUDWLRQRIWKHPHFKDQLFDOVHDO

2QO\UHPRYHWKHSURWHFWLYHZUDSSLQJRIWKHFRQWDFWIDFHVLPPHGLDWHO\EHIRUHDVVHPEO\WDNHVSODFH

0DNHVXUHWKHVXUIDFHRIWKHVKDIWLVDEVROXWHO\FOHDQDQGXQGDPDJHG

%HIRUHWKHDFWXDOLQVWDOODWLRQRIWKHPHFKDQLFDOVHDOZHWWKHFRQWDFWIDFHVZLWKDGURSRIRLO

)RUHDVLHULQVWDOODWLRQRIEHOORZVW\SHPHFKDQLFDOVHDOVZHWWKHLQVLGHGLDPHWHURIWKHEHOORZVZLWKVRDS\ZDWHUQRRLO

7RSUHYHQWDQ\GDPDJHWRWKHUXEEHUEHOORZVSODFHDWKLQIRLOWKLFNQHVVDSSUR[LPDWHO\WRPPDURXQGWKHIUHHVKDIWVWXE6OLSWKHURWDWLQJDVVHPEO\RYHUWKHIRLOLQWRLWVLQVWDOODWLRQSRVLWLRQ7KHQUHPRYHWKHIRLO

7KHVKDIWDQGUROOLQJHOHPHQWEHDULQJVKDYHEHHQSURSHUO\LQVWDOOHGLQWKHPRWRU

3XVKGULYHHQGPHFKDQLFDOVHDORQWRVKDIWDQGVHFXUHLWZLWKWDSHUORFNULQJRUFLUFOLS

6HTXHQFH6HDOLQJHOHPHQWV

7LJKWHQLQJWRUTXHV


RI $PDUH[.57


53/86

,QVHUW2ULQJVDQGLQWRGLVFKDUJHFRYHUDQGSUHVVWKHPLQWREHDULQJEUDFNHWDVIDUDVWKH\ZLOOJR

3XVKSXPSHQGPHFKDQLFDOVHDORQWRVKDIW

)RUVSHFLDOPHFKDQLFDOVHDOVZLWKFRYHUHGVSULQJVWLJKWHQWKHVRFNHWKHDGFDSVFUHZDWWKHURWDWLQJDVVHPEO\EHIRUHILWWLQJWKHLPSHOOHU2EVHUYHLQVWDOODWLRQGLPHQVLRQ$

7DEOH,QVWDOODWLRQGLPHQVLRQ$6L]H ,QVWDOODWLRQGLPHQVLRQ$>PP@

)LWWLQJWKHLPSHOOHU)RUEHDULQJEUDFNHWVZLWKWDSHUHGILWPDNHVXUHWKDWWKHWDSHUHGILWRILPSHOOHUDQGVKDIWLVXQGDPDJHGDQGLQVWDOOHGIUHHIURPJUHDVH

7KHVKDIWDQGUROOLQJHOHPHQWEHDULQJVKDYHEHHQSURSHUO\LQVWDOOHG

7KHPHFKDQLFDOVHDOVKDYHEHHQSURSHUO\LQVWDOOHG

6OLSLPSHOOHURQWRWKHVKDIWHQG

6FUHZLQLPSHOOHUVFUHZDQGGLVF7LJKWHQWKHPZLWKDWRUTXHZUHQFK

7DEOH7LJKWHQLQJWRUTXHIRUWKHLPSHOOHUVFUHZ6L]H 7KUHDG 7LJKWHQLQJWRUTXH

>1P@'

0

)(.

0

0

)LWWLQJWKHLPSHOOHUXVLQJWKHVSHFLDOILWWLQJDQGUHPRYDOWRRO 0RXQWWKHLPSHOOHUXVLQJWKHVSHFLDOLPSHOOHUILWWLQJDQGUHPRYDOWRRO

)LWWKHLPSHOOHUIDVWHQLQJHOHPHQWV

$

)LJ,QVWDOODWLRQGLPHQVLRQ$

)LJ)LWWLQJWKHLPSHOOHU


$PDUH[.57 RI


54/86

8VLQJWKHVSHFLDOILWWLQJDQGUHPRYDOWRRO 6FUHZSDUWRIWKHVSHFLDOILWWLQJDQGUHPRYDOWRROLQWRWKHVKDIWHQGRIWKH

SXPSVHW

6FUHZSDUWWRWKHWKUHDGHGEROWSDUW

)LWWLQJWKHFXWWHU

)LJ)LWWLQJWKHFXWWHU 3XPSHQGPHFKDQLFDOVHDOKDVEHHQLQVWDOOHG

6OLGHLPSHOOHURQWRWKHFRQLFDOVKDIWHQG

,QVHUWJURRYHGSLQLQWRWKHLPSHOOHUDQGILWLPSHOOHUERG\RQWKHFHQWULQJKXE

6FUHZLQLPSHOOHUVFUHZDQGXVHDWRUTXHZUHQFKWRWLJKWHQWKHVFUHZWRDWRUTXHRI1P

)LWWKHSXPSFDVLQJLQFOXGLQJ2ULQJXVLQJKH[DJRQKHDGEROWV8VHDWRUTXHZUHQFKWRWLJKWHQWKHEROWVWRDWLJKWHQLQJWRUTXHRI1P

,QVHUW2ULQJLQVXFWLRQFRYHU

)DVWHQULQJZLWKVRFNHWKHDGFDSVFUHZLQWKHVXFWLRQFRYHU

,QVHUWWKHVXFWLRQFRYHULQWRWKHSXPSFDVLQJPDNLQJVXUHWKHVXFWLRQFRYHUWRXFKHVWKHLPSHOOHUYDQHV0DNHVXUHWKDWVRFNHWKHDGFDSVFUHZVGRQRWSURWUXGHIURPWKHWKUHDGHGKROHVLQWKHVXFWLRQFRYHU

6FUHZLQKH[DJRQKHDGEROWWRKROGWKHVXFWLRQFRYHULQSODFH'RQRWWLJKWHQWKHEROW\HW

0HDVXUHWKHGLVWDQFHEHWZHHQWKHLPSHOOHUDQGWKHVXFWLRQFRYHU'LVWDQFH6VKRXOGPHDVXUHDSSUR[LPDWHO\PP

)LJ6SHFLDOILWWLQJDQGUHPRYDOWRRO


RI $PDUH[.57


55/86

,IUHTXLUHGDGMXVWWKHSRVLWLRQRIWKHVXFWLRQFRYHULQUHODWLRQWRWKHSXPSFDVLQJXVLQJVRFNHWKHDGFDSVFUHZ

7LJKWHQKH[DJRQKHDGEROWWRDWRUTXHRI1P

5RWDWHWKHLPSHOOHUERG\WRFKHFNWKDWWKHLPSHOOHUWXUQVVPRRWKO\0DNHVXUHWKDWWKHVXFWLRQFRYHUDQGLPSHOOHUGRQRWWRXFKHDFKRWKHU

,QVWDOOLQJWKHEDFNSXOORXWXQLW 'HVLJQZLWKD[LDOFOHDUDQFH$IWHUFDVLQJZHDUULQJVZLWKDUDGLDOFOHDUDQFHKDYHEHHQILWWHGLQSXPSFDVLQJWKH\KDYHWKHUHTXLUHGLQQHUGLDPHWHUDQGGRQRWQHHGWREHUHDGMXVWHG

8VHDUXEEHUPDOOHWWRSXVKFDVLQJZHDUULQJLQWRSXPSFDVLQJDVIDUDVLWZLOOJR

,QVHUWWKHFRPSOHWHEDFNSXOORXWXQLWLQWKHSXPSFDVLQJ

(YHQO\WLJKWHQVFUHZHGFRQQHFWLRQEHWZHHQSXPSFDVLQJDQGEHDULQJEUDFNHW

$[LDOGLVSODFHPHQWRIWKHURWRU'DPDJHWRVKDIWVHDODQGEHDULQJV

$OZD\VDGMXVWDQGFKHFNWKHD[LDOFOHDUDQFHZLWKWKHSXPSVHWLQYHUWLFDOSRVLWLRQ

8VHDUXEEHUPDOOHWWRSXVKFDVLQJZHDUULQJLQXQWLOLWLVFORVHWRLPSHOOHU

6XVSHQGWKHSXPSVHWYHUWLFDOO\DVLOOXVWUDWHG

/LIWRIIWKHSXPSVHWDQGDGMXVWWKHD[LDOFOHDUDQFHWRPP

'HVLJQZLWKZHDUSODWH 7KHVKDIWUROOLQJHOHPHQWEHDULQJVPHFKDQLFDOVHDODQGLPSHOOHUKDYHEHHQ

DVVHPEOHGSURSHUO\

)LJ6XVSHQGLQJWKHSXPSVHW

$

)LJ)LWWLQJWKHFDVLQJZHDUULQJ


$PDUH[.57 RI


56/86

PP

)LJ)LWWLQJWKHZHDUSODWH (TXLSZHDUSODWHZLWKWZRQHZ2ULQJVDQG

,QVHUWZHDUSODWHLQWRSXPSFDVLQJ

)DVWHQZHDUSODWHWRSXPSFDVLQJZLWKVRFNHWKHDGFDSVFUHZV

$GMXVWWKHFOHDUDQFHEHWZHHQLPSHOOHUDQGZHDUSODWHE\ORRVHQLQJDQGWLJKWHQLQJVFUHZVDQG

6FUHZSXVKHVWKHZHDUSODWHLQWKHGLUHFWLRQRIWKHLPSHOOHU

7KHFOHDUDQFHHTXDOVPPPHDVXUHGRQWKHVXFWLRQVLGHIURPWKHRXWHUVXUIDFHRIWKHLPSHOOHUYDQHWRWKHZHDUSODWH

,QVHUWWKHFRPSOHWHEDFNSXOORXWXQLWLQWRWKHSXPSFDVLQJ

(YHQO\WLJKWHQVFUHZHGFRQQHFWLRQEHWZHHQSXPSFDVLQJDQGEHDULQJEUDFNHW

5HDVVDPEOLQJWKHPRWRUVHFWLRQ%HIRUHUHDVVHPEOLQJWKHPRWRUVHFWLRQFKHFNWKDWDOOMRLQWVUHOHYDQWWRH[SORVLRQSURWHFWLRQIODPHSDWKVDUHXQGDPDJHG$Q\FRPSRQHQWVZLWKGDPDJHGIODPHSDWKVPXVWEHUHSODFHG2QO\XVHRULJLQDOVSDUHSDUWVPDGHE\.6%IRUH[SORVLRQSURRISXPSV2EVHUYHWKHIODPHSDWKSRVLWLRQVVSHFLILHGLQWKH$QQH[6HFXUHDOOVFUHZHGFRQQHFWLRQVFORVLQJRIIDIODPHSURRIHQFORVXUHZLWKDWKUHDGORFNLQJDJHQW/RFWLWHW\SH

:URQJVFUHZVEROWV([SORVLRQKD]DUG

$OZD\VXVHWKHRULJLQDOVFUHZVEROWVIRUDVVHPEOLQJDQH[SORVLRQSURRISXPSVHW

1HYHUXVHVFUHZVEROWVRIGLIIHUHQWGLPHQVLRQVRURIDORZHUSURSHUW\FODVV

/HDNWHVWLQJ$IWHUUHDVVHPEO\WKHPHFKDQLFDOVHDODUHDOXEULFDQWUHVHUYRLUPXVWEHWHVWHGIRUOHDNDJH7KHOXEULFDQWILOOHURSHQLQJLVXVHGIRUOHDNWHVWLQJ

2EVHUYHWKHIROORZLQJYDOXHVIRUOHDNWHVWLQJ

7HVWPHGLXPFRPSUHVVHGDLU


RI $PDUH[.57


57/86

7HVWSUHVVXUHEDUPD[ 7HVWSHULRGPLQXWHV

3EDU

)LJ6FUHZLQJLQWKHWHVWLQJGHYLFH 8QVFUHZDQGUHPRYHWKHVFUHZSOXJDQGMRLQWULQJRIWKHOXEULFDQWUHVHUYRLU

6FUHZWKHWHVWLQJGHYLFHWLJKWO\LQWRWKHOXEULFDQWILOOHURSHQLQJ

&DUU\RXWWKHOHDNWHVWZLWKWKHYDOXHVVSHFLILHGDERYH7KHSUHVVXUHPXVWQRWGURSGXULQJWKHWHVWSHULRG,IWKHSUHVVXUHGRHVGURSFKHFNWKHVHDOVDQGVFUHZHGFRQQHFWLRQV5HSHDWWKHOHDNWHVW

,IWKHOHDNWHVWKDVEHHQVXFFHVVIXOILOOLQWKHOXEULFDQW

&KHFNLQJWKHFRQQHFWLRQRIPRWRUSRZHUVXSSO\2QFHUHDVVHPEO\KDVEHHQFRPSOHWHGFDUU\RXWWKHVWHSVGHVFULEHGLQ

7LJKWHQLQJWRUTXHV7DEOH%ROWWLJKWHQLQJWRUTXHV>1P@GHSHQGLQJRQWKUHDGPDWHULDODQGSURSHUW\FODVV

7KUHDG 0DWHULDO$ $

3URSHUW\FODVV5S1PP

0 0 0

0 0 0 0 0 0 0 0 0


$PDUH[.57 RI


58/86

6SDUHSDUWVVWRFN 2UGHULQJVSDUHSDUWV$OZD\VTXRWHWKHIROORZLQJGDWDZKHQRUGHULQJUHSODFHPHQWRUVSDUHSDUWV

3XPSW\SH

.6%RUGHUQXPEHU 0RWRUQXPEHU

5HIHUWRWKHQDPHSODWHIRUDOOGDWD

$OVRVXSSO\WKHIROORZLQJGDWD

'HVFULSWLRQ

3DUW1R

4XDQWLW\RIVSDUHSDUWV

6KLSSLQJDGGUHVV

0RGHRIGLVSDWFKIUHLJKWPDLOH[SUHVVIUHLJKWDLUIUHLJKW

5HIHUWRWKHJHQHUDODVVHPEO\GUDZLQJIRUSDUWQXPEHUVDQGGHVFULSWLRQV

5HFRPPHQGHGVSDUHSDUWVVWRFNIRU\HDUVRSHUDWLRQWR',17DEOH4XDQWLW\RIVSDUHSDUWVIRUUHFRPPHQGHGVSDUHSDUWVVWRFN3DUW1R 'HVFULSWLRQ 1XPEHURISXPSVHWVLQFOXGLQJVWDQGE\SXPSVHWV

DQG DQG DQGPRUH 0RWRUXQLW &DEOHJODQG 5RWRU ,PSHOOHU

&DVLQJZHDUULQJ 0HFKDQLFDOVHDOPRWRU

HQG

0HFKDQLFDOVHDOSXPSHQG

5ROOLQJHOHPHQWEHDULQJPRWRUHQG

5ROOLQJHOHPHQWEHDULQJSXPSHQG

6HWRIVHDOLQJHOHPHQWVIRUWKHPRWRU

6HWRIVHDOLQJHOHPHQWVIRUWKHK\GUDXOLFV\VWHP

)RUWZR\HDUVRIFRQWLQXRXVRSHUDWLRQRURSHUDWLQJKRXUV


RI $PDUH[.57


59/86

7URXEOHVKRRWLQJ

,PSURSHUUHPHGLDOZRUNRQWKHSXPSVHW5LVNRILQMXU\

)RUDQ\ZRUNSHUIRUPHGLQRUGHUWRUHPHG\IDXOWVRQWKHSXPSVHWREVHUYH

WKHUHOHYDQWLQIRUPDWLRQJLYHQLQWKLVRSHUDWLQJPDQXDORUWKHSURGXFWOLWHUDWXUHSURYLGHGE\WKHDFFHVVRULHVPDQXIDFWXUHUV

,ISUREOHPVRFFXUWKDWDUHQRWGHVFULEHGLQWKHIROORZLQJWDEOHFRQVXOWDWLRQZLWK.6%VFXVWRPHUVHUYLFHLVUHTXLUHG

3XPSLVUXQQLQJEXWGRHVQRWGHOLYHU

3XPSGHOLYHUVLQVXIILFLHQWIORZUDWH

([FHVVLYHFXUUHQWSRZHUFRQVXPSWLRQ

,QVXIILFLHQWGLVFKDUJHKHDG

9LEUDWLRQVDQGQRLVHGXULQJSXPSRSHUDWLRQ

7DEOH7URXEOHVKRRWLQJ$ % & ' ( 3RVVLEOHFDXVH 5HPHG\ 3XPSGHOLYHUVDJDLQVWDQH[FHVVLYHO\KLJK

SUHVVXUH5HDGMXVWWRGXW\SRLQW

*DWHYDOYHLQWKHGLVFKDUJHOLQHLVQRWIXOO\RSHQ

)XOO\RSHQWKHJDWHYDOYH

3XPSLVUXQQLQJLQWKHRIIGHVLJQUDQJHORZIORZRYHUORDG

&KHFNWKHSXPSVRSHUDWLQJGDWD

3XPSRUSLSLQJDUHQRWFRPSOHWHO\YHQWHG 9HQWE\OLIWLQJWKHSXPSRIIWKHGXFNIRRWEHQGDQGORZHULQJLWDJDLQ

3XPSLQWDNHFORJJHGE\GHSRVLWV &OHDQWKHLQWDNHSXPSFRPSRQHQWVDQGQRQUHWXUQYDOYH

6XSSO\OLQHRULPSHOOHUFORJJHG 5HPRYHGHSRVLWVLQWKHSXPSDQGRUSLSLQJ

'LUWILEUHVLQWKHFOHDUDQFHEHWZHHQWKHFDVLQJZDOODQGLPSHOOHUVOXJJLVKURWRU

&KHFNZKHWKHUWKHLPSHOOHUFDQEHHDVLO\URWDWHG&OHDQWKHLPSHOOHULIUHTXLUHG

:HDURILQWHUQDOFRPSRQHQWV 5HSODFHZRUQFRPSRQHQWVE\QHZRQHV

'HIHFWLYHULVHUSLSHDQGVHDOLQJHOHPHQW 5HSODFHGHIHFWLYHULVHUSLSHVUHSODFHVHDOLQJHOHPHQWV

,PSHUPLVVLEOHDLURUJDVFRQWHQWLQWKHIOXLGKDQGOHG

&RQWDFW.6%

6\VWHPLQGXFHGYLEUDWLRQV &RQWDFW.6%

:URQJGLUHFWLRQRIURWDWLRQ &KHFNWKHHOHFWULFDOFRQQHFWLRQRIWKHPRWRUDQGWKHFRQWUROV\VWHPLIDQ\

:URQJVXSSO\YROWDJH &KHFNWKHSRZHUFDEOH&KHFNWKHFDEOHFRQQHFWLRQV

0RWRULVQRWUXQQLQJEHFDXVHRIODFNRIYROWDJH

&KHFNWKHHOHFWULFDOLQVWDOODWLRQ&RQWDFWWKHHQHUJ\VXSSOLHU

0RWRUZLQGLQJRUSRZHUFDEOHDUHGHIHFWLYH 5HSODFHE\QHZRULJLQDO.6%SDUWVRUFRQWDFW.6%

'HIHFWLYHUROOLQJHOHPHQWEHDULQJV 3OHDVHFRQWDFW.6%

,QFDVHRIVWDUGHOWDFRQILJXUDWLRQPRWRUUXQQLQJLQVWDUFRQILJXUDWLRQRQO\

&KHFNVWDUGHOWDFRQWDFWRU

:DWHUOHYHOORZHUHGWRRPXFKGXULQJRSHUDWLRQ

&KHFNOHYHOFRQWUROHTXLSPHQW

7KHWHPSHUDWXUHVZLWFKPRQLWRULQJWKHZLQGLQJKDVWULSSHGWKHSXPSEHFDXVHRIH[FHVVLYHWHPSHUDWXUHULVHLQWKHZLQGLQJ

7KHPRWRUZLOOUHVWDUWDXWRPDWLFDOO\RQFHLWKDVFRROHGGRZQ

7KHUPLVWRUWULSSLQJXQLWZLWKPDQXDOUHVHWIRUWHPSHUDWXUHOLPLWHUH[SORVLRQSURWHFWLRQKDVWULSSHGWKHSXPSDVDUHVXOWRIWKHSHUPLVVLEOHZLQGLQJWHPSHUDWXUHEHLQJ

H[FHHGHG

+DYHFDXVHGHWHUPLQHGDQGHOLPLQDWHGE\TXDOLILHGDQGWUDLQHGSHUVRQQHO

$%&'(

7URXEOHVKRRWLQJ

$PDUH[.57 RI


60/86

$ % & ' ( 3RVVLEOHFDXVH 5HPHG\ 0RWRUKDVEHHQWULSSHGE\OHDNDJHPRQLWRU +DYHFDXVHGHWHUPLQHGDQGHOLPLQDWHGE\

TXDOLILHGDQGWUDLQHGSHUVRQQHO 0HFKDQLFDOVHDOPRQLWRUKDVWULSSHG +DYHFDXVHGHWHUPLQHGDQGHOLPLQDWHGE\

TXDOLILHGDQGWUDLQHGSHUVRQQHO %HDULQJWHPSHUDWXUHPRQLWRUKDVWULSSHG +DYHFDXVHGHWHUPLQHGDQGHOLPLQDWHGE\

TXDOLILHGDQGWUDLQHGSHUVRQQHO

7URXEOHVKRRWLQJ

RI $PDUH[.57


61/86

5HODWHG'RFXPHQWV *HQHUDODVVHPEO\GUDZLQJV5HIHUWRWKHIROORZLQJWDEOHIRUGHWDLOHGYLHZVRIWKHJHQHUDODVVHPEO\GUDZLQJHJXSSHUEHDULQJ

,IDSSOLFDEOH

6HFWLRQDOGUDZLQJVRIPHFKDQLFDOVHDO

)RUPDWHULDOYDULDQW&&6L]HVRIK\GUDXOLFV\VWHP

0RWRUVL]HV

*HQHUDODVVHPEO\GUDZLQJRISXPSVHWZLWKPRWRUW\SH'.1DQGWDSHUHGILWLPSHOOHUW\SH)

5HODWHG'RFXPHQWV

$PDUH[.57 RI


62/86

7DEOH'HWDLOHGYLHZVRIJHQHUDODVVHPEO\GUDZLQJRISXPSVHWZLWKPRWRUW\SH'.1DQGWDSHUHGILW

'HVFULSWLRQ 'HWDLOHGYLHZ&DEOHJODQG

9

8SSHUEHDULQJ

0RWRUVL]HV

8SSHUEHDULQJ

0RWRUVL]HV

8.;.8.;.

8SSHUEHDULQJ

0RWRUVL]HV

,PSHOOHUW\SH'

5HODWHG'RFXPHQWV

RI $PDUH[.57


63/86

'HVFULSWLRQ 'HWDLOHGYLHZ,PSHOOHUW\SH(

2QO\IRU(,PSHOOHUW\SH.

,IDSSOLFDEOH

.RQO\

,IDSSOLFDEOH,PSHOOHUW\SH6

3DUW1R 'HVFULSWLRQ 3DUW1R 'HVFULSWLRQ ,PSHOOHUERG\ /LSVHDO /HDNDJHPRQLWRU 0HFKDQLFDOVHDO 0RWRUXQLW 6KDIWVHDOKRXVLQJ (QGFRQQHFWRU 5LQJ 7HUPLQDOFODPS &DVLQJZHDUULQJ &ODPSLQJHOHPHQW ,PSHOOHUZHDUULQJ 6WDWRU %HDULQJVOHHYH 'HVLFFDQW 'LVF

3XPSFDVLQJ *URRYHGSLQ

5HODWHG'RFXPHQWV

$PDUH[.57 RI


64/86

3DUW1R 'HVFULSWLRQ 3DUW1R 'HVFULSWLRQ ,QWHUPHGLDWHFDVLQJ 0RWRUKRXVLQJ ,QOHWULQJ 5RWRU :HDUSODWH &DEOHJODQG 6XFWLRQFRYHU %ROWVFUHZ 'LVFKDUJHFRYHU +H[DJRQKHDGEROW ,PSHOOHU 6FUHZSOXJ

5ROOLQJHOHPHQWEHDULQJ

*UXEVFUHZ

5DGLDOEDOOEHDULQJ +H[DJRQVRFNHWKHDGFDSVFUHZ

5DGLDOUROOHUEHDULQJ 1XW %HDULQJEUDFNHW 6DIHW\GHYLFH %HDULQJFRYHU /RFNZDVKHU -RLQWULQJ &LUFOLS 2ULQJ

5HODWHG'RFXPHQWV

RI $PDUH[.57


65/86

6HFWLRQDOGUDZLQJVRIPHFKDQLFDOVHDO6L]HVRIK\GUDXOLFV\VWHP''

0RWRUVL]HV

*HQHUDODVVHPEO\GUDZLQJRISXPSVHWZLWKPRWRUW\SH'.1SROHLPSHOOHUW\SH'

5HODWHG'RFXPHQWV

$PDUH[.57 RI


66/86

7DEOH'HWDLOHGYLHZVRIJHQHUDODVVHPEO\GUDZLQJRISXPSVHWZLWKPRWRUW\SH'.1SROH'HVFULSWLRQ 'HWDLOHGYLHZ/XEULFDQWUHVHUYRLUOHDNDJHFKDPEHU

&DEOHJODQGV


2SWLRQDO

3DUW1R 'HVFULSWLRQ 3DUW1R 'HVFULSWLRQ 7HPSHUDWXUHVHQVRU /LSVHDO /HDNDJHPRQLWRU 0HFKDQLFDOVHDO &DEOHWHUPLQDO 5LQJ )ORDWVZLWFK 6OHHYH &ODPSLQJHOHPHQW 'LVF 6WDWRU /XEULFDWLQJQLSSOH 3XPSFDVLQJ *UHDVHTXDQWLW\FRQWURO :HDUSODWH 5RWRU 'LVFKDUJHFRYHU &DEOHJODQG ,PSHOOHU %ROWVFUHZ 5ROOLQJHOHPHQW

EHDULQJ +H[DJRQKHDGEROW

%HDULQJEUDFNHW 6FUHZSOXJ %HDULQJFRYHU

+H[DJRQVRFNHWKHDGFDS

VFUHZ

5HODWHG'RFXPHQWV

RI $PDUH[.57


67/86

3DUW1R 'HVFULSWLRQ 3DUW1R 'HVFULSWLRQ -RLQWULQJ &LUFOLS 2ULQJ /DEHOSODWH

,IDSSOLFDEOH



0RWRUVL]HV

*HQHUDODVVHPEO\GUDZLQJRISXPSVHWZLWKPRWRUW\SH'.1DQGF\OLQGULFDOLQWHUIHUHQFHILWLPSHOOHUW\SHV.(

5HODWHG'RFXPHQWV

$PDUH[.57 RI


68/86

7DEOH'HWDLOHGYLHZVRIJHQHUDODVVHPEO\GUDZLQJRISXPSVHWZLWKPRWRUW\SH'.1DQGF\OLQGULFDOLQWHUIHUHQFHILW

'HVFULSWLRQ 'HWDLOHGYLHZ,PSHOOHUW\SH)

&DEOHJODQG

9

3DUW1R 'HVFULSWLRQ 3DUW1R 'HVFULSWLRQ &DVLQJLQVHUW 0HFKDQLFDOVHDO /HDNDJHPRQLWRU 6KDIWVHDOKRXVLQJ (QGFRQQHFWRU &DVLQJZHDUULQJ 7HUPLQDOFODPS %HDULQJVOHHYH &ODPSLQJHOHPHQW 0RWRUKRXVLQJ 6WDWRU 5RWRU 'HVLFFDQW &DEOHJODQG 3XPSFDVLQJ %ROWVFUHZ 'LVFKDUJHFRYHU +H[DJRQKHDGEROW ,PSHOOHUKXEFDS 6WXG ,PSHOOHU 6FUHZSOXJ 5DGLDOEDOOEHDULQJ +H[DJRQVRFNHWKHDGFDS

VFUHZ

5DGLDOUROOHUEHDULQJ 1XW %HDULQJEUDFNHW 6DIHW\GHYLFH -RLQWULQJ &LUFOLS 2ULQJ .H\ /LSVHDO /DEHOSODWH

5HODWHG'RFXPHQWV

RI $PDUH[.57


69/86

,IDSSOLFDEOH



0RWRUVL]HV

*HQHUDODVVHPEO\GUDZLQJRISXPSVHWZLWKPRWRUW\SH'.1LPSHOOHUW\SHV.(

5HODWHG'RFXPHQWV

$PDUH[.57 RI


70/86

7DEOH'HWDLOHGYLHZVRIJHQHUDODVVHPEO\GUDZLQJRISXPSVHWZLWKPRWRUW\SH'.1'HVFULSWLRQ 'HWDLOHGYLHZ&DEOHJODQGV

,PSHOOHUW\SH)

3DUW1R 'HVFULSWLRQ 3DUW1R 'HVFULSWLRQ &DVLQJLQVHUW 0HFKDQLFDOVHDO 6KDFNOH 6KDIWVHDOKRXVLQJ /HDNDJHPRQLWRU &DVLQJZHDUULQJ

7HUPLQDO 'LVF &ODPSLQJHOHPHQW 0RWRUKRXVLQJ 6WDWRU 5RWRU 3XPSFDVLQJ &DEOHJODQG 'LVFKDUJHFRYHU %ROWVFUHZ ,PSHOOHU 6WXG ,PSHOOHUKXEFDS 6FUHZSOXJ 5DGLDOUROOHUEHDULQJ +H[DJRQVRFNHWKHDGFDSVFUHZ %HDULQJEUDFNHW 1XW 5DGLDOEDOOEHDULQJ &LUFOLS -RLQWULQJ .H\

2ULQJ /DEHOSODWH

/LSVHDO

5HODWHG'RFXPHQWV

RI $PDUH[.57


71/86

6HFWLRQDOGUDZLQJVRIPHFKDQLFDOVHDO6L]HVRIK\GUDXOLFV\VWHP'''''

''

0RWRUVL]HV

*HQHUDODVVHPEO\GUDZLQJRISXPSVHWZLWKPRWRUW\SH'.1SROHLPSHOOHUW\SH'

5HODWHG'RFXPHQWV

$PDUH[.57 RI


72/86

7DEOH'HWDLOHGYLHZVRIJHQHUDODVVHPEO\GUDZLQJRISXPSVHWZLWKPRWRUW\SH'.1SROH'HVFULSWLRQ 'HWDLOHGYLHZ&DEOHJODQG


5HODWHG'RFXPHQWV

RI $PDUH[.57


73/86

'HVFULSWLRQ 'HWDLOHGYLHZ/XEULFDQWUHVHUYRLUOHDNDJHFKDPEHU

3DUW1R 'HVFULSWLRQ 3DUW1R 'HVFULSWLRQ 7HPSH

Documents

Amarex KRT DIN 40 to 300 - San Felipe