Vous êtes sur la page 1sur 259

STAFF OFFICER’S GUIDE

VOLUME 3
The Battalion S-6
June 2008

RD
OPO

Army National Guard


Battle Command Training Center
Fort Leavenworth, Kansas 66027-2346

 
  


 





3XUSRVH7KHSXUSRVHRIWKLVGRFXPHQWLVWRSURYLGH$UP\1DWLRQDO*XDUG
$51* EDWWDOLRQV %1 DQGRWKHUVZLWKDSRFNHWUHIHUHQFHJXLGHWR
DVVLVW%1VWDIIRIILFHUVLQWKHSHUIRUPDQFHRIWKHLUDVVLJQHGGXWLHV

3UHSDUDWLRQDQG([FHSWLRQ$XWKRULW\7KHDXWKRUVKLSDQGFRQVWUXFWRIWKLV
GRFXPHQWUHVLGHVZLWKWKH$51*%DWWOH&RPPDQG7UDLQLQJ&HQWHU
%&7& &KDQJHDXWKRUL]DWLRQUHVLGHVZLWKWKH&RPPDQGHU%&7&7KH
%&7&ZLOOXSGDWHWKLVSXEOLFDWLRQYLDSHULRGLFHUUDWDVKHHWV

&RPPDQGHU¶V1RWH

³7KHILUVWWZRYROXPHVRIWKHVWDIIRIILFHU¶VJXLGHVHULHVFRYHULQJWKH6
66DQG6RIILFHUVKDYHEHHQZHOOUHFHLYHGDQGFRQWLQXHWRSURYLGH
YDOXDEOHXVDEOHLQIRUPDWLRQIRURXU6ROGLHUVDQG/HDGHUVWRPHHWWKH
FRQVWDQWFKDQJHSUHFLSLWDWHGE\&RQWHPSRUDU\2SHUDWLQJ(QYLURQPHQW
&2( UHTXLUHPHQWV9ROXPHRIWKH6WDII2IILFHU¶V*XLGHKDVEHHQ
GHYHORSHGWRPDNHWKHVDPHFRQWULEXWLRQWRVWDIIWUDLQLQJDQGRSHUDWLRQV
IRUWKH6RIILFHU-XVWDVZHKDYHVHHQPDMRUGRFWULQDOFKDQJHVLQWKH
RSHUDWLRQDOHQYLURQPHQW HJWKHUHYLVHGRSHUDWLRQVSURFHVVDVDGGUHVVHG
LQ)LHOG0DQXDO,QWHULP )0, DQGHPSKDVLVRQHIIHFWVDQG
FRXQWHULQVXUJHQF\RSHUDWLRQV DQGFKDQJHVLQWKHORJLVWLFDOHQYLURQPHQW
FKDQJHVLQWKHGHVLJQFDSDELOLW\RIORJLVWLFVXQLWVDQGLQPDQHXYHU
VXVWDLQPHQW WKHUHKDYHEHHQFRUUHVSRQGLQJFKDQJHVLQWKH
FRPPXQLFDWLRQVDQGDXWRPDWLRQHQYLURQPHQWVDVZHOO,DPFRQILGHQW
WKDWWKLVJXLGHZLOODVVLVW%16RIILFHUVZLWKWKHLUFRQVLGHUDEOHWDVNVLQ
VXSSRUWRI%1FRPPDQGDQGFRQWURO & $OWKRXJK%1VWDIIVIDFHHYHU
FKDQJLQJGRFWULQHDQGUDSLGWXUQRYHUWKH\DUHVWLOOH[SHFWHGWRµKLWWKH
JURXQGUXQQLQJ¶«VXIILFLHQWO\NQRZOHGJHDEOHWRSURYLGHVHDPOHVV
FRQWLQXLW\UHJDUGOHVVRIFKDQJH7KLV66WDII2IILFHU¶V*XLGHZKLOHQRWD
UHSODFHPHQWIRUGRFWULQHZLOOHDVHWKHWXUEXOHQFHRIVWDIIWXUQRYHUDQG
FRQWULEXWHWRHIIHFWLYHVWDIIRSHUDWLRQV´


/7&0DUN%ROO
&RPPDQGHU
%DWWOH&RPPDQG7UDLQLQJ&HQWHU
)RUW/HDYHQZRUWK.DQVDV

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  



 


7KH6WDII2IILFHU¶V*XLGH KHUHLQDIWHUFDOOHGWKH*XLGH LVDPXOWLYROXPH
VHULHVWKDWDWWHPSWVWRDGGUHVVWKHIXQFWLRQVDQGUHVSRQVLELOLWLHVRIVWDII
RIILFHUVDWWKH$51*%1WDVNIRUFH 7) OHYHO

:KHUHSRVVLEOHRUSUDFWLFDOWKURXJKRXWWKLVYROXPHZHKDYHHPSKDVL]HG
6RIILFHUWDVNVWKURXJKWKHXVHRIXQGHUOLQLQJRUD%2/'IRQW

:KHUHDSSURSULDWHZHKDYHXVHGDVW\OL]HGJUDSKLFWRSRUWUD\WKHWDVN
XQGHUH[DPLQDWLRQ7KLVVWDQGDUG³7DVN*UDSKLF´VHUYHVWKUHHSXUSRVHV
LQPDQ\FDVHVLWZLOOHOLPLQDWHWKHQHHGIRUH[SODQDWRU\QDUUDWLYHIRU
VRPHLWZLOOPDNHLWHDVLHUWRHQYLVLRQWKHVXEMHFWWDVNDQGODVWO\LWFDQ
RIWHQVHUYHDVDKLJKOHYHOFKHFNOLVW

7KHVWDQGDUG³7DVN*UDSKLF´FRQVLVWVRID³ER[´ WDVNER[ FRQWDLQLQJWKH
WDVNLQDVLPSOHYHUEQRXQIRUPDW

/DEHOHG³DUURZV´OHDGLQJLQWRWKHER[UHSUHVHQWFRPSRQHQWVQHFHVVDU\WR
SHUIRUPWKHWDVN7KHVHFRPSRQHQWVDUHODEHOHGLQSXWVFRQWUROVDQG
SHUIRUPHUV,QIRUPDWLRQQHFHVVDU\WRSHUIRUPWKHWDVNRULQSXWVHQWHUVWKH
ER[IURPWKHOHIW,WHPVWKDWJRYHUQWKHSHUIRUPDQFHRIWKHWDVNRU
FRQWUROVHQWHUIURPDERYH7KHLQGLYLGXDODQGRUPHFKDQLVP V\VWHP
HTXLSPHQW WKDWSHUIRUP V WKHWDVNRUSHUIRUPHU V HQWHU V WKHER[IURP
EHORZ

/DVWO\ODEHOHG³DUURZV´OHDYLQJWKHWDVNER[RQWKHULJKWVLGHUHSUHVHQWWKH
GHVLUHGUHVXOWVRURXWSXWV$VDPSOHKLJKOHYHOWDVN³&RPSDUH&2$V
0'036WHS ´IROORZV

6DPSOH7DVN*UDSKLF

&'5¶V *XLGDQFH
'RFWULQH

&'5¶V ,QWHQW

7$&623
)$'6&&ULWHULD

)0

&21752/

287387

:DU*DPH5HVXOWV
&RPSDUH&2$V 'HFLVLRQ0DWUL[
6\QFK0DWUL[ 0'036WHS 
&RPPDQGHU

,1387 3(5)250(5
%DWWOH6WDII

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  
  

7KH6WDII2IILFHU¶V*XLGHLVDVHULHVLQWHQGHGWRSURYLGHDUHDG\UHIHUHQFH
IRU%1VWDIIRIILFHUV1RWVLQFHWKHSXEOLFDWLRQRIWKH6WDII2IILFHUV¶
+DQGERRNLQKDVWKHWDFWLFDOOHYHOVWDIIRIILFHUKDGDVLQJOH
FRPSUHKHQVLYHUHIHUHQFHWRDVVLVWLQWKHSHUIRUPDQFHRIKLVRUKHUMRE7KH
*XLGHVHULHVLVDQDWWHPSWWRLPSURYHXSRQSUHYLRXVJXLGHVE\XSGDWLQJ
DQGIRFXVLQJLQGLYLGXDOYROXPHVRQVSHFLILFVWDIIRIILFHUV$VVXFKWKH
*XLGHLVQHLWKHUDQDOOHQFRPSDVVLQJUHIHUHQFHQRUDUHSODFHPHQWIRU
FXUUHQW$UP\GRFWULQDOPDQXDOVQRULVLWGHVLJQHGWRUHSODFHRUDXJPHQW
FXUUHQWLQVWUXFWLRQPDWHULDOV,WLVKRZHYHULQWHQGHGWRSURYLGHD
FRQGHQVHGSRFNHWVL]HUHIHUHQFHIRU%1VWDIIRIILFHUVWKDWFRYHUVWKHLU
EDVLFGXWLHVDQGUHVSRQVLELOLWLHVDXJPHQWHGZLWKVSHFLILFKHOSIXO³WLSV´
WHFKQLTXHVDQGSURFHGXUHVWRIDFLOLWDWHWKHLUDVVLJQPHQWWRD%1VWDII
7KHH[DPSOHVDQGVDPSOHVXVHGWKURXJKRXWDUHQHLWKHUDOOHQFRPSDVVLQJ
QRUWKHRQO\RUEHVWVROXWLRQ

:KLOH$UP\GRFWULQHDQGHVSHFLDOO\)LHOG0DQXDOV )0 DQG
)0,SURYLGHVWKHSULQFLSDOVRXUFHRILQIRUPDWLRQXVHGLQSUHSDUDWLRQ
RIWKLVJXLGHQXPHURXVRWKHUUHIHUHQFHVGRFWULQDODQGRWKHUZLVHKDYH
EHHQPLQHGLQRUGHUWRSURYLGHWKLVFRPSUHKHQVLYHDQGXVHUIULHQGO\WRRO
IRUWKHVWDIIRIILFHU¶VNLWEDJV,WLVH[SHFWHGWKDWVWDIIRIILFHUVZLOOUHIHUWR
WKHUHIHUHQFHGVRXUFHVDQGHVSHFLDOO\WRGRFWULQHZKHUHPRUHGHWDLOLV
UHTXLUHG

(DFKRIWKH*XLGHYROXPHVLVLQWHQGHGWRFRYHURQHRUWZRRIILFHUVRQWKH
%1VWDII7KLVYROXPH 9ROXPH DGGUHVVHVWKH%16RIILFHU,WLVQRW
LQWHQGHGWREHDFRPSUHKHQVLYHGHVNUHIHUHQFHDVLWGRHVQRWJRLQWR
VXIILFLHQWGHWDLO7KHXVHRIQXPHURXVGUDZLQJVPDWULFHVWDEOHVDQG
EXOOHWOLVWVIXUWKHUHQKDQFHLWVUHDGDELOLW\

7KHJHQHUDOFRQWHQWRIHDFKYROXPHZLOOEHVLPLODUWKURXJKRXWWKHVHULHV±
LQIRUPDWLRQFRPPRQWRDOOVWDIIRIILFHUVIROORZHGE\VSHFLILFLQIRUPDWLRQ
IRUVXEMHFWRIILFHU V 7KH*XLGHIXUWKHUDWWHPSWVWRHPSKDVL]HWKH
H[FKDQJHRISURGXFWVDQGLQIRUPDWLRQ HJZKRWDONVWRZKRPDERXW
ZKDW" 

$OOUHIHUHQFHVWRVWDIIRIILFHUVLQWKH*XLGHDUHQRQJHQGHUVSHFLILF

:KLOHDODUJHSRUWLRQRIWKHLQIRUPDWLRQLQWKLVJXLGHPD\EHXVHGDV
³WLSV´WHFKQLTXHVDQGSURFHGXUHV 773 VRPHKDYHEHHQKLJKOLJKWHGLQ
WKHIROORZLQJPDQQHU

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

773([DPSOH

773Ź 7KHPLVVLRQYDULDEOHVRIPLVVLRQHQHP\WHUUDLQWURRSV
DYDLODEOHWLPHDQGFLYLOFRQVLGHUDWLRQV 0(777& SURYLGH
DVRXQGIUDPHZRUNIRULGHQWLI\LQJKD]DUGVZKHQSODQQLQJ
SUHSDULQJDQGH[HFXWLQJRSHUDWLRQV

7H[WWKDWKDVEHHQKLJKOLJKWHGZLWKDER[LVRISDUWLFXODUVXSSRUWLQJ
VLJQLILFDQFHWRWKHVXEMHFWDGGUHVVHG

$FFHVVLELOLW\

7KLVGRFXPHQWPD\EHDFFHVVHGHOHFWURQLFDOO\DWWKH%&7&OLQNRQERWK
WKH$UP\.QRZOHGJH2Q/LQH $.2 DQG*XDUG.QRZOHGJH2Q/LQH
*.2 ZHEVLWHVXVLQJWKHIROORZLQJSDWKV
$.2:HEVLWH3DWK

6WHS  6LJQLQWR³$UP\.QRZOHGJH2Q/LQH $.2 ´


6WHS  ,QWKHPHQXEDU XSSHUFHQWHUVHFWLRQRIWKHVFUHHQ FOLFNRQ³ILOHV´
6WHS  ,QWKH³$.2)LOHV+RPH´ ER[ OHIWVLGHRIWKHVFUHHQ FOLFNRQ LQRUGHU 
³86$UP\2UJDQL]DWLRQV´ ³75$'2&´ ³,QVWDOODWLRQV´ )RUW/HDYHQZRUWK´ ³%&7&´
6WHS  ,IQRWVXEVFULEHGWRWKH%&7&.QRZOHGJH&HQWHU .& VXEVFULEHWRLW
7RVXEVFULEHFKHFNWKHER[WRWKHOHIWRI³%&7&´ WRDFWLYDWHWKH³6XEVFULEH´ LFRQ
LQWKHXSSHUPHQXEDU&OLFNRQWKH³6XEVFULEH´ LFRQ$SSURYDOLVDXWRPDWLF
6WHS  ,QWKH³%&7&7$)7/LEUDU\´ VHOHFWWKHDSSURSULDWHYROXPHXQGHU
³6WDII2IILFHU¶V*XLGH´


*.2:HEVLWH3DWK

6WHS  6LJQLQWR³*XDUG.QRZOHGJH2Q/LQH *.2 ´


6WHS  2QWKHOHIWVLGHRIWKHVFUHHQXQGHU³+RPH´ FOLFNRQ³$51*´
6WHS  8QGHU³$51*´ FOLFNRQ LQRUGHU ³2SHUDWLRQV7UDLQLQJ * ´ ³7UDLQLQJ´ 
³%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7& ´ ³3XEOLFDWLRQV/LEUDU\´
6WHS  8QGHU³3XEOLFDWLRQV/LEUDU\´ FOLFNRQ³7UDLQLQJ$QDO\VLVDQG)HHGEDFN´
6WHS  6HOHFWWKHDSSURSULDWHYROXPHXQGHU³6WDII2IILFHU¶V*XLGH´







%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  


 


+2:7286(7+,667$))2)),&(5¶6*8,'( ,,
,1752'8&7,21  
$FFHVVLELOLW\
7$%/(2)&217(176  
/LVWRI)LJXUHV
3$57±'87,(6$1'5(63216,%,/,7,(6±%16
*HQHUDO  
$UULYLQJDW<RXU1HZ8QLW  
6HFWLRQ±*HQHUDO'XWLHVDQG5HVSRQVLELOLWLHVRIWKH6 
*HQHUDO  
:KDWWKH6JHQHUDOO\QHHGVWRNQRZIURPWKH%1&RPPDQGHU
 
:KDWWKH%1&RPPDQGHUJHQHUDOO\QHHGVWRNQRZIURPWKH6
 
*HQHUDO'XWLHVDQG5HVSRQVLELOLWLHVRIWKH&RPPXQLFDWLRQV&KLHI 
7KH6DQG3ODQQLQJ  
7KH6DQG&RPEDW1HW5DGLR  
7KH6DQG1HWZRUNV 
$XWRPDWLRQDQG,QIRUPDWLRQ0DQDJHPHQW 
5HSRUWVDQG&RPEDW5HFRUGV  
&RPEDW5HSRUWV
&RPEDW5HFRUGV -RXUQDOVDQG-RXUQDO)LOHV 
&RPEDW5HFRUGV :RUNERRNV 
,QIRUPDWLRQ$VVXUDQFH 
6HFWLRQ±&RPPXQLFDWLRQV6XSSRUWWR3ODQQLQJ  
*HQHUDO  
,QWHOOLJHQFH3UHSDUDWLRQRIWKH%DWWOHILHOG ,3%  
*HQHUDO 
6WHS±'HILQHWKH%DWWOHILHOG(QYLURQPHQW 
6WHS±'HVFULEHWKH%DWWOHILHOG¶V(IIHFWV 
6WHS±(YDOXDWHWKH7KUHDW 
6WHS±'HWHUPLQH(QHP\&2$V 
7KH$EEUHYLDWHG,3%3URFHVV 
,QWHOOLJHQFH6XUYHLOODQFHDQG5HFRQQDLVVDQFH ,65  
*HQHUDO 
%XLOGLQJD&ROOHFWLRQ3ODQ 
&ROOHFWLRQ3ODQ'HYHORSPHQW&KHFNOLVW
%1,653ODQQLQJ7HDP
,65&2$&KHFNOLVW
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
(VWLPDWHV  
*HQHUDO 
(VVHQWLDO4XDOLWLHVRI(VWLPDWHV
7\SHVRI(VWLPDWHV
5XQQLQJ(VWLPDWHV 
6LJQDO5XQQLQJ(VWLPDWH 
6DPSOH)RUPDWRI*HQHULF5XQQLQJ(VWLPDWH 
3ODQVDQG2UGHUV 
*HQHUDO 
&KDUDFWHULVWLFVRI3ODQVDQG2UGHUV 
7\SHVRI3ODQV 
7\SHVRI2UGHUV
6RXUFHVRI,QIRUPDWLRQLQDQ2UGHU
7HFKQLTXHVIRU,VVXLQJ2UGHUV
$GPLQLVWUDWLYH,QVWUXFWLRQV 
$WWDFKPHQWV 
2UGHUV$QQH[HV
2SHUDWLRQV0DWULFHVDQG7HPSODWHV
'HFLVLRQ6XSSRUW7HPSODWH '67 
'HFLVLRQ6XSSRUW0DWUL[ 
6\QFKURQL]DWLRQ0DWUL[ 
([HFXWLRQ0DWUL[
6HOHFWHG6\PEROVDQG*UDSKLFV  
*HQHUDO 
8QLW6\PEROV 
0DQHXYHU*UDSKLFV 
5HKHDUVDOV  
*HQHUDO 
)LYH5HKHDUVDO7\SHV
6L[5HKHDUVDO7HFKQLTXHV
5HKHDUVDO5HVSRQVLELOLWLHV 
5HKHDUVDO6FULSW
%DFN%ULHIV 
*HQHUDO5HKHDUVDO7LSVDQG5HPLQGHUV
$IWHU$FWLRQ5HYLHZ $$5  
*HQHUDO 
.H\3RLQWVWR$GGUHVVLQ$$5V 
7KH$$5)RUPDW 
7\SHVRI$$5V
7KH$$53URFHVV
5XOHVRI(QJDJHPHQW 52(  
*HQHUDO 
&KDUDFWHULVWLFVRI(IIHFWLYH52( 
3ULQFLSDO52(&RQVLGHUDWLRQV 
52(*XLGHOLQHV5$03DQG9(:35,.
%DWWOH5K\WKP  
*HQHUDO  
%DWWOH5K\WKP7HQHWV5HTXLUHPHQWVDQG&RQVLGHUDWLRQV  
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
%DWWOH7UDFNLQJ 
*HQHUDO  
&RPPDQGHU,QIRUPDWLRQ1HHGV 
([DPSOH7UDFNLQJ&KDUWV 
3$57±%$77$/,21',*,7,=$7,21 
*HQHUDO  
6HFWLRQ±%DWWOH&RPPDQGDQG$%&6'XWLHVDQG5HVSRQVLELOLWLHV
 
*HQHUDO  
%1%DWWOH6WDII$%&6'XWLHVDQG5HVSRQVLELOLWLHV  
6HFWLRQ±$%&66\VWHP %DWWDOLRQ/HYHO6\VWHPV  
*HQHUDO  
0DQHXYHU&RQWURO6\VWHP 0&6  
$OO6RXUFH$QDO\VLV6\VWHP±/LJKW $6$6/  
$GYDQFHG)LHOG$UWLOOHU\7DFWLFDO'DWD6\VWHP $)$7'6  
)RUFH;;%DWWOH&RPPDQG%ULJDGHDQG%HORZ )%&%  
7KH&RPPRQ2SHUDWLRQDO3LFWXUH 
6HFWLRQ±%DWWOH&RPPDQGDQG$%&6 0'03  
*HQHUDO  
0'036WHS±5HFHLSWRI0LVVLRQ 
0'036WHS±0LVVLRQ$QDO\VLV  
0'036WHS±&RXUVHRI$FWLRQ'HYHORSPHQW 
0'036WHS±&RXUVHRI$FWLRQ$QDO\VLV  
0'036WHS±&RXUVHRI$FWLRQ&RPSDULVRQ 
0'036WHS±&RXUVHRI$FWLRQ$SSURYDO 
0'036WHS±2UGHUV3URGXFWLRQ  
6HFWLRQ±6DPSOH$%&6%DWWOH'ULOOV 
*HQHUDO  
%DWWOH'ULOO±&OHDUDQFHRI)LUHV  
%DWWOH'ULOO±9%,(',('$WWDFN 
%DWWOH'ULOO±52(9LRODWLRQ  
%DWWOH'ULOO±)ULHQGO\.LOOHGLQ$FWLRQ .,$ :RXQGHGLQ
$FWLRQ :,$  
6XSSRUW7DVN&KHFNOLVWV  
6HFWLRQ±7KH'LJLWDO&RPPDQG3RVWDQG7DVN,QWHJUDWLRQ  
*HQHUDO  
72&6HWXS773  
&RPPRQ%DWWOH6WDII5HVSRQVLELOLWLHVLQWKH'LJLWDO72&  
'LJLWDO72&%DWWOH6WDII7DVN,QWHJUDWLRQ  
3$57*(1(5,&%$77$/,2167$))2)),&(55(48,5(0(176
*HQHUDO  
6HFWLRQ±6WDII&RRUGLQDWLRQDQG&RPPXQLFDWLRQV 
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
*HQHUDO  
&RRUGLQDWLRQ  
6WDII&RPPXQLFDWLRQV 
6HFWLRQ±%ULHILQJVDQG6SHDNLQJ 
*HQHUDO  
%ULHILQJ7HFKQLTXHV  
7\SHVRI%ULHILQJV 
,QIRUPDWLRQ%ULHILQJ  
,QIRUPDWLRQ%ULHILQJ)RUPDW 
'HFLVLRQ%ULHILQJ  
'HFLVLRQ%ULHILQJ)RUPDW 
0LVVLRQ%ULHILQJ  
6WDII%ULHILQJ  
%ULHILQJ&KHFNOLVW 
0HFKDQLFVRI(IIHFWLYH6SHDNLQJ 
6HFWLRQ±0LOLWDU\:ULWLQJ  
*HQHUDO  
:ULWLQJ7HFKQLTXHV 
6WDII6WXGLHV 
6WDII6WXG\)RUPDW  
3DSHUVDQG&RUUHVSRQGHQFH  
*HQHUDO  
'HFLVLRQ3DSHUV  
0HPRUDQGD  
/HWWHUV  
6HFWLRQ±0DQDJHPHQW6XSHUYLVLRQDQG$GPLQLVWUDWLRQ  
*HQHUDO0DQDJHPHQW&RQVLGHUDWLRQV  
6WDII6XSHUYLVLRQ  
$OHUW6XERUGLQDWHV4XLFNO\  
$QVZHUWKH4XHVWLRQV  
0RQLWRUWKH$FWLRQ  
5HSRUWRQWKH$FWLRQ  
$GPLQLVWUDWLRQ  
0HPRU\  
:RUNLQJ)LOHV  
'DWDEDVHV  
3ROLF\)LOHV 
0HHWLQJV  
7DFWLFDO623 7$&623  
*HQHUDO  
7$&623'HVLJQ 
7KH7$&623/LIH&\FOH  
6HFWLRQ±&RPSRVLWH5LVN0DQDJHPHQW 
*HQHUDO  
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
&RPSRVLWH5LVN0DQDJHPHQW &50 3URFHVV 
6WHS±,GHQWLI\KD]DUGV  
6WHS±$VVHVVKD]DUGV  
6WHS±'HYHORSFRQWUROVDQGPDNHULVNGHFLVLRQV 
6WHS±,PSOHPHQWFRQWUROV 
6WHS±6XSHUYLVHDQGHYDOXDWH 
7UDFNLQJ5LVN0DQDJHPHQW 
6HFWLRQ±$GYLVLQJ 
*HQHUDO  
$GYLVLQJ&RQVLGHUDWLRQV  
6WDII$GYLVLQJ7DVNV 
3$57±0,6&(//$1(286
6HFWLRQ*HQHUDO5HIHUHQFHV 
-XOLDQ'DWH&DOHQGDUV 
'DWH7LPH*URXS  
7LPH=RQHV  
&RQYHUVLRQ)DFWRUV  
%1%'(6LJQDO$VVHWV 
6HFWLRQ±6RXUFHVDQG5HIHUHQFHV  
$UP\)LHOG0DQXDOV )0  
-RLQW3XEOLFDWLRQV  
0LVFHOODQHRXV6RXUFHV 
6HFWLRQ±$FURQ\PVDQG$EEUHYLDWLRQV  
6HFWLRQ±6HOHFWHG*ORVVDU\  

/LVWRI)LJXUHV
6DPSOH7DVN*UDSKLF  LL
773([DPSOH 
%166HFWLRQ5ROHV±$:D\ 
%19HUVXV%'(&5ROHV
6DPSOH%15HSRUWVLQ$%&6 
0HVVDJH&URVVWDONDQG$%&6 
7RS7HQ,$³1HHG±WRNQRZV´
,3%*UDSKLF
6DPSOH:HDWKHU(IIHFWV7DEOH
6DPSOH'RFWULQDO7HPSODWH 
'HYHORSPHQWRIWKH6,77(03 
6DPSOH6LWXDWLRQ7HPSODWH 6,77(03 
6DPSOH(YHQW0DWUL[ 
%XLOGWKH(YHQW7HPSODWH(9(17(03 
,65*UDSKLF
6DPSOH,65&RQFHSW6NHWFK %'( 
6DPSOH,65&RQFHSW6NHWFK 7)67((/ 
7\SLFDO,65&\FOH
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
 
6DPSOH,65&\FOH
6DPSOH,65&\FOH
(VWLPDWH*UDSKLF 
6DPSOH6LJQDO(VWLPDWH ³$:D\´ 
3ODQV2UGHUV*UDSKLF 
6DPSOH$QQH[+ &2SHUDWLRQV 
&RQVWUXFWLRQRID8QLW6\PERO 
$LU$VVDXOW6\PEROV 
$LUERUQH6\PEROV 
$UPRU6\PEROV 
0HFKDQL]HG,QIDQWU\6\PEROV 
,QIDQWU\6\PEROV 
/LJKW,QIDQWU\6\PEROV 
6WU\NHU%&76\PEROV 
0DULQH6\PEROV
6\VWHPDQG(TXLSPHQW6\PEROV
6\VWHPDQG(TXLSPHQW6\PEROV
6\VWHPDQG(TXLSPHQW6\PEROV
6\VWHPDQG(TXLSPHQW6\PEROV
0DQHXYHU*UDSKLFVDQG&RQWURO0HDVXUHV
5HKHDUVDO*UDSKLF
:KDWWR*DLQIURPD5HKHDUVDO
7\SHVRI5HKHDUVDOV 
7HUUDLQ0RGHO5HKHDUVDO7RROV
6DPSOH6\QFKURQL]DWLRQ0DWUL[
52()LJXUH 
2325'$QQH[( 5XOHVRI(QJDJHPHQW  )0 
%DWWOH5K\WKP)LJXUH
%DWWOH5K\WKP7HQHWV
%DWWOH5K\WKP5HTXLUHPHQWVDQG&RQVLGHUDWLRQV 
6DPSOH*HQHULF%DWWOH5K\WKP
6DPSOH%16%DWWOH5K\WKP 
6DPSOH%166KLIW&KDQJH%ULHI$JHQGD 
%DWWOH7UDFNLQJ*UDSKLF 
++40LVVLRQDQG,QWHQW)RUPDW
&ULWLFDO,QIRUPDWLRQ&KDUW 
.H\(YHQW$FWLRQ)RUPDW
&RPEDW3RZHU)RUPDW 
7DVN2UJDQL]DWLRQ)RUPDW
:HDSRQV&RQWURO6WDWXV&KDUW
8QLW/RFDWLRQV)RUPDW 
$VVHWV$YDLODEOH)RUPDW 
/LJKWDQG:HDWKHU'DWD)RUPDW
5RXWH6WDWXV)RUPDW
&ODVVHVRI6XSSO\
%DVLF$%&6$UFKLWHFWXUH
$%&66\VWHP&RQWULEXWLRQWRWKH&23 
&23,QIRUPDWLRQ'LVSOD\
&([HFXWLRQ0DWUL[
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
 ! 
&OHDUDQFHRI)LUHV 
9%,(',('$WWDFN 
52(9LRODWLRQ 
)ULHQGO\.,$:,$
6DPSOH'LJLWDO&3&RQILJXUDWLRQ 
%16WDII6WUXFWXUH 
0LOLWDU\%ULHILQJ&KHFNOLVW
)RUPDWIRUD'HFLVLRQ3DSHU 
6DPSOH0HPRUDQGXP 
6DPSOH/HWWHU 
7$&623/LIH&\FOH 
7$&623&KHFNOLVW 
5LVN0DQDJHPHQW*UDSKLF 
5LVN0DQDJHPHQWDQGWKH0'03
5LVN$VVHVVPHQW0DWUL[
6DPSOH5LVN0DQDJHPHQW:RUNVKHHW
6DPSOH5LVN$VVHVVPHQWIRUWKH6 0LVVLRQ$QDO\VLV 
$GYLVLQJ2SHUDWLRQDO*UDSKLF 
-XOLDQ'DWH&DOHQGDU /HDS<HDU 
-XOLDQ'DWH&DOHQGDU 1RQ/HDS<HDU 
7LPH=RQH&KDUW
&RQYHUVLRQ)DFWRUV :HLJKW 
&RQYHUVLRQ)DFWRUV 6SHHG 
&RQYHUVLRQ)DFWRUV $QJXODU0HDVXUHPHQWV 
&RQYHUVLRQ)DFWRUV /LQHDU0HDVXUHPHQWV 
&RQYHUVLRQ)DFWRUV 9ROXPH 
%166HFWLRQ2UJDQL]DWLRQ
%&76LJQDO2UJDQL]DWLRQ +%&7,%&7 
%'(6LJQDO&RPSDQ\$VVHWV +%&7,%&7 








7KLVSRUWLRQOHIWEODQNLQWHQWLRQDOO\

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 " 

# 

#


*HQHUDO

7KH%16LVWKHSULQFLSDOFRRUGLQDWLQJVWDIIRIILFHUIRUDOOPDWWHUV
FRQFHUQLQJFRPPDQGFRQWUROFRPPXQLFDWLRQVDQGFRPSXWHU & 
RSHUDWLRQV,QWKLVFDSDFLW\KHLVUHVSRQVLEOHWRWKH%1FRPPDQGHUEXW
ZRUNVGLUHFWO\IRUWKH%1([HFXWLYH2IILFHU ;2 $GGLWLRQDOO\DVWKH%1
VLJQDORIILFHUKHPXVWZRUNFORVHO\ZLWKWKHEULJDGH %'( VLJQDORIILFHU
DQGVXERUGLQDWHVLJQDOSHUVRQQHO7KHUHLVDOVRDFORVHUHODWLRQVKLS
EHWZHHQWKH%16DQG6WKDWPXVWEHPHQWLRQHG7KH6ZLOOGLUHFW
PDQ\RIKLVVSHFLILFGXWLHVDQGWKH6PXVWXQGHUVWDQGWKH6SODQ
WKRXJKWSURFHVVDQGPHWKRGRORJ\WRPDNHWKHQHWZRUNUHDFWLQWXLWLYHO\WR
VXSSRUWWKHILJKW7KH6LVUHVSRQVLEOHIRUEDWWOHFRPPDQGZKLOHWKH6
SURYLGHVWKHFDSDELOLWLHVWRHQDEOHWKLVEDWWOHFRPPDQGIXQFWLRQ
&RPPXQLFDWLRQVFDSDELOLW\EHFRPHVDFULWLFDOFRPEDWPXOWLSOLHU7KH%1
6PXVWDOVRZRUNFORVHO\ZLWKWKH%'(6DQGDGMDFHQWKHDGTXDUWHUVWR
HQVXUHHIILFLHQWFRPPXQLFDWLRQVHPSOR\PHQWWKURXJKRXWWKH%'(DUHDRI
UHVSRQVLELOLW\ $25 7KH6LVDOVRUHVSRQVLEOHIRU1HWZRUN
0DQDJHPHQW 10 DQG,QIRUPDWLRQ$VVXUDQFH ,$ ZLWKLQWKH%1

$UULYLQJDW<RXU1HZ8QLW

7KHIROORZLQJLVDQH[FHUSWIURPDIRUPHUFRPPDQGHU¶VLQEULHILQJIRU
DUULYLQJVWDIIRIILFHUV,WKDVEHHQLQFOXGHGEHFDXVHWKHDGYLFHWKDWLV
RIIHUHGXQGHUVFRUHVPXFKRIZK\WKLVJXLGHZDVGHYHORSHG:KLOHWKH
FRQWHQWRIWKLVLQEULHILQJH[FHUSWSURYLGHVYDOXDEOH773LWDOVRFDSWXUHV
WKHHVVHQFHRIKRZWRJHWRIIWRDJRRGVWDUWLQ\RXUQHZDVVLJQPHQW

³$Q[LHW\SUREDEO\EHVWFKDUDFWHUL]HV\RXUIHHOLQJVULJKWQRZ,
ZDQW\RXWRNQRZWKDW¶VQRUPDO<RXSUREDEO\GRQ¶WNQRZPDQ\
SHRSOHKHUHLIDQ\<RXDUHZRQGHULQJDERXWZKDW,H[SHFWRI\RX
<RXZRQGHUZKHWKHU\RXZLOOILWLQDQGWKHOLVWJRHVRQ2QO\\RX
FDQSXW\RXUDQ[LHW\WRUHVWEXW,FDQRIIHU\RXWKLV±
<RXDUHDVSHFLDOLVWLQ\RXUZDUILJKWLQJIXQFWLRQDODUHDVR
GHPRQVWUDWHFRQILGHQFHLQ\RXUDELOLW\WRKHOSWKHXQLW
'RQ¶WH[SHFWRWKHUEDWWOHVWDIIPHPEHUVWRNQRZPXFKDERXWZKDW
\RXEULQJWRWKHWDEOHDQGHVSHFLDOO\KRZ\RXGRLW
<RXFDQH[SHFWKRZHYHUWKDW\RXUIHOORZVWDIIPHPEHUVZLOOWUXVW
WKDW\RXNQRZZKDWWKH\GR«VRSUHSDUH\RXUVHOIWRPHHWWKHLU
H[SHFWDWLRQV
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
<RXPD\KDYHWLPHWRVHWWOHLQEXWH[SHFWWRKLWWKHJURXQGUXQQLQJ
*HWDFRS\RIRXUXQLWWDFWLFDOVWDQGLQJRSHUDWLQJSURFHGXUHV
7$&623 LI\RXKDYHQ¶WDOUHDG\6WXG\LWWRXQGHUVWDQG
• :KDWRWKHUVKDYHWRGRDQGKRZ\RXFDQEHVWVXSSRUWWKHP
• +RZ\RXPXVWFRQWULEXWHWRWKH%1¶VEDWWOHUK\WKP
• +RZ\RXILWLQWRWKH%1¶VSODQQLQJSURFHVVDQGZKDW\RX
ZLOOEHH[SHFWHGWRSURYLGH5HPHPEHUWKHVFKRROKRXVH
PD\KDYHJLYHQ\RXWKHULJKWLGHDVEXWRXU7$&623ZLOO
SURYLGHWKHGHWDLOV
• +RZ\RXFRQWULEXWHWREDWWOHWUDFNLQJDQGKRZ\RXUHDFWWR
PLVVLRQFKDQJH
• +RZWREHSURDFWLYHLQ\RXUSODQQLQJDQGH[HFXWLRQWDVNV
$QG«PXFKPXFKPRUH
<RXZLOOJHWPRUHJXLGDQFHWKDQ\RXPD\ZDQWEXWOLVWHQLQJLVWKH
EHVWKDOIRIFRPPXQLFDWLRQ
,WKH;2DQGWKHUHVWRIWKHEDWWOHVWDIIZLOOH[SHFW\RXWRSURYLGH
VHDPOHVVVXSSRUW<RXZLOOEHGRLQJ\RXUEHVWZRUNZKHQQRRQHLV
ORRNLQJIRU\RX
$OZD\V SXVK \RXU LQIRUPDWLRQ UHTXLUHPHQWV WR HYHU\ EDWWOH VWDII
XVHUDQGOHDUQKRZWRSXOOWKHLUVWR\RX
%HSURDFWLYH<RXDUHSUREDEO\IDLOLQJLI\RXDUHEHLQJUHDFWLYH
)LQDOO\EHLQJDVXFFHVVIXOPHPEHURIWKLVEDWWOHVWDIILVDPDWWHURI
WDVNV\QFKURQL]DWLRQ,I\RXUWDVNVDUHV\QFKURQL]HGZLWKDOORIWKH
RWKHUZDUILJKWLQJIXQFWLRQWDVNVWKHFRKHVLRQQHHGHGWRSURPRWHD
VRXQGEDWWOHUK\WKPLVLQSODFH<RXZLOOKDYHGRQH\RXUSDUWDQG
ZLOOJHWSDVWDQ\DQ[LHW\WKDW\RXRUDQ\RQHLQWKHXQLWKDGEHIRUH
\RXUDUULYDO´

7KHIROORZLQJWDVNOLVWLVDJXLGHRIDFWLRQVDQHZ6FRXOGWDNHDIWHU
EHLQJDVVLJQHGWRDQHZXQLW,WLVQRWLQWHQGHGWREHDOOLQFOXVLYH

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

7$6.   '$7(,1,7

)LUVW'D\V

5HDGDOO%DWWDOLRQSROLF\OHWWHUV   BBBBB BBBBB
 
5HYLHZDQGXQGHUVWDQGGXWLHVDQGUHVSRQVLELOLWLHV
RIWKH66HFWLRQ    BBBBB BBBBB

$VVHVVFRPPXQLFDWLRQUHVRXUFHVDYDLODEOH
DQGVWDWXV     BBBBB BBBBB

.QRZXQGHUVWDQGSXUFKDVLQJSURFHVV ERWK
FRQWUDFWVFUHGLWFDUG     BBBBB BBBBB
 
)LQGRXW+2:WKH%DWWDOLRQGRHV0'03
WKHQGLYHLQ     BBBBB BBBBB

.QRZWKH%ULJDGH¶VDQG%DWWDOLRQ
VFRQWLQJHQF\
DQGGHSOR\PHQWSODQV    BBBBB BBBBB

/HDUQWKHVLJQDOSHUVRQQHOVWDWXVWKURXJKRXWWKH
%DWWDOLRQ HQVXUHWKH%16XQGHUVWDQGVWKDW
SODFHPHQWRIDOOQHZ6LJQDOSHUVRQQHOLVYHWWHG
WKURXJKWKH%'(&RPPXQLFDWLRQV&KLHI   BBBBB BBBBB

5HYLHZWKH1HWZRUN7UDLQLQJ3ODQLIRQHGRHV
QRWH[LVWSUHSDUHRQH    BBBBB BBBBB

5HYLHZ%DWWDOLRQ1HWZRUN&HUWLILFDWLRQ3ODQ
LIRQHGRHVQRWH[LVWSUHSDUHRQH   BBBBB BBBBB
 
&RRUGLQDWHZLWKGHSOR\PHQW++46 LINQRZQ  BBBBB BBBBB
  
&RRUGLQDWHZLWK1(7&20XQLWVLQWKH$2
RSHUDWLRQDOHQYLURQPHQW LINQRZQ   BBBBB BBBBB

WR'D\V

&RQGXFWDULVNDVVHVVPHQWIRUVSHFLILFW\SHVRI
WUDLQLQJHYHQWV     BBBBB BBBBB

$WWHQGHYDOXDWHDQG$$5DWOHDVWRQH%DWWDOLRQ
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
6WUDLQLQJHYHQW    BBBBB BBBBB

3ULRUWR'D\V

%HFRPH&77FHUWLILHG    BBBBB BBBBB

2EVHUYHD4XDUWHUO\7UDLQLQJ%ULHI  BBBBB BBBBB

3UHVHQWDFODVVRQDUHTXLUHGVXEMHFWWRSHHUV
RUVXERUGLQDWHV     BBBBB BBBBB

6HFWLRQ±*HQHUDO'XWLHVDQG5HVSRQVLELOLWLHVRI
WKH6

$%$&'(

$VWKHSULQFLSDOVWDIIRIILFHUUHVSRQVLEOHIRUDOOPDWWHUVFRQFHUQLQJWKH
LQVWDOODWLRQDQGXVHRIFRPPXQLFDWLRQV\VWHPVDQGWKHDFWLYLWLHVRI
FRPPXQLFDWLRQSHUVRQQHOWKH6SHUIRUPVWKHIROORZLQJ
ƒ 3URYLGHVWHFKQLFDOVWDIIVXSHUYLVLRQRYHUVLJQDOVXSSRUWDFWLYLWLHV
WKURXJKRXWWKHXQLW
ƒ 5HFRPPHQGVUHWUDQVPLVVLRQHTXLSPHQWHPSOR\PHQW
ƒ ,GHQWLILHVFRRUGLQDWHVDQGSURYLGHVIRUXQLWFRPPXQLFDWLRQ
UHTXLUHPHQWV
ƒ &RRUGLQDWHVZLWKQH[WKLJKHUHFKHORQVLJQDORIILFHUIRUDGGLWLRQDO
VLJQDOVXSSRUWLIQHHGHG
ƒ 3UHSDUHVWKHVLJQDOSRUWLRQRIXQLWRSHUDWLRQRUGHUV 2325' 
RSHUDWLRQSODQV 23/$1 DQGVWDQGLQJRSHUDWLQJSURFHGXUHV 623 
ƒ :RUNVZLWKWKH6RQHOHFWURQLFFRXQWHUPHDVXUH (&0 WKUHDWDQG
HOHFWURQLFFRXQWHUFRXQWHUPHDVXUH (&&0 SURFHGXUHV
ƒ :RUNVZLWKWKH6RQPDQLSXODWLYHFRPPXQLFDWLRQVGHFHSWLRQDQG
WDFWLFDO(&&0
ƒ &RRUGLQDWHVIRUPDLQWHQDQFHVXSSRUWZLWKWKH6
ƒ (VWDEOLVKHVPHVVHQJHUVHUYLFHVDQGVFKHGXOHV
ƒ $VVXPHVVXSHUYLVRU\UHVSRQVLELOLW\IRUDOOFRPPXQLFDWLRQVVHFXULW\
&206(& LWHPVZLWKLQWKHXQLWWRLQFOXGHDFFRXQWDELOLW\
GLVWULEXWLRQGHVWUXFWLRQDQGVHFXULW\
ƒ $VVHVVHVFRPPXQLFDWLRQVYXOQHUDELOLW\DQGULVNPDQDJHPHQW
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
ƒ 0RQLWRUV&206(&
ƒ 0RQLWRUVWKHSURFXUHPHQWDOORFDWLRQDQGVHUYLFHRIWKH%1¶V
DXWRPDWHGGDWDSURFHVVLQJ $'3 VRIWZDUHDQGKDUGZDUH
ƒ 6HUYHVDVWKHQHWZRUNPDQDJHUDQGLQIRUPDWLRQVHFXULW\RIILFHU

7KH6WHFKQLFDOGXWLHVDQGUHVSRQVLELOLWLHVJHQHUDOO\IDOOLQWRWZRDUHDV
SODQQLQJDQGPDQDJHPHQW+HLVUHVSRQVLEOHWRSODQDQGPDQDJH
ƒ 6LJQDOVXSSRUWDQGPDLQWHQDQFH
ƒ 'DWDVXSSRUW /RFDO$UHD1HWZRUN /$1 :LGH$UHD1HWZRUN
:$1 
ƒ 7HOHSKRQHVXSSRUW
ƒ &RPEDWQHWUDGLR &15 VXSSRUW
ƒ ,QIRUPDWLRQDVVXUDQFH ,$ 
ƒ ,QWHUQHWZRUNFRQQHFWLYLW\DQG
ƒ &RPPXQLFDWLRQVVHFXULW\ &206(& 

$GGLWLRQDOO\WKH6PXVWPDQDJHWKHUHVWRUDWLRQRIFRPPXQLFDWLRQV
VHUYLFHVDQGPDQDJHDQGFRRUGLQDWHLQIRUPDWLRQPDQDJHPHQW ,0 

7KHLPSRUWDQFHRIFRPPXQLFDWLRQVIRUHIIHFWLYH&FDQQRWEH
RYHUHPSKDVL]HG,IWKH&RPPDQGHULVSODQQLQJIRUDFRPPXQLFDWLRQV
V\VWHPKHVKRXOGEHJXLGHGE\WKHW\SHVDQGDPRXQWRIHTXLSPHQWWKDWDUH
DYDLODEOH$OOFRPPXQLFDWLRQVHOHFWURQLF &( DVVHWVDYDLODEOH
WKURXJKRXWWKHFRPPDQGPXVWEHFRQVLGHUHG7KLVLQFOXGHVHTXLSPHQWLQ
WKHVLJQDOXQLWDVZHOODVWKH&(HTXLSPHQWDQGSHUVRQQHODVVLJQHGWRWKH
%1

7KHIROORZLQJJUDSKLFUHSUHVHQWV³DZD\´WRGHILQHLQWHUQDOVXSHUYLVRU\
UHVSRQVLELOLWLHVZLWKLQWKH%166HFWLRQ

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

%166HFWLRQ5ROHV±$:D\

‡ $XWRPDWLRQ
± +HDGHGE\WKH: $
± 6HUYHUV72&2SHUDWLRQV
‡ 1HW236
± +HDGHGE\WKH: 1
± 5HVSRQVLEOHIRU(YHU\WKLQJ3ULRUWRWKH5RXWHU
‡ &RPEDW1HW5DGLR
± +HDGHGE\( 8
± 6SHFWUXP0DQDJHPHQW&206(&5DGLR0DQDJHPHQW
‡ 72&236
± +HDGHGE\WKH: $
± 72&,QWHJUDWLRQRI$%&66,&83V &33
‡ %DFN2IILFH
± +HDGHGE\2 )$ 
± 6SHFWUXP0DQDJHPHQW&206(&5DGLR0DQDJHPHQW
± 6HUYHU)DUPV
± )LHOG6HUYLFH5HS0DQDJHPHQW


7KHIROORZLQJJUDSKLFGHSLFWVWKHGLIIHUHQFHEHWZHHQWKH%'(DQG%1
UROHVDQGUHVSRQVLELOLWLHVFRQFHUQLQJ&

%19HUVXV%'(&5ROHV


%'(),*+7 %1),*+7
‡ &OHDU6,*1$/0,66,21 ‡ ,QVWDOODWLRQ2SHUDWH0DLQWDLQ6\VWHPV
‡ 7DVN3XUSRVH,QWHQW ‡ &RQILUP6\VWHP$YDLODELOLW\
‡ $QDO\VLV ‡ 5HTXHVW$VVLVWDQFH
‡ 7UDFN6\VWHP6WDWXV ‡ 0LVVLRQ&RPPXQLFDWLRQV$QDO\VLV

‡ &$UFKLWHFWXUH ‡ &RQGXFW&RQILJXUDWLRQ&KDQJHV
‡ 1HWZRUN0DQDJHPHQW ‡ 5HSRUW6,*$&76WR1(723
‡ )UHTXHQF\0DQDJHPHQW ‡ )UHTXHQF\'LVWULEXWLRQ8VDJH

‡ &206(&0DQDJHPHQW ‡ ,VVXHDQG3URWHFW&206(&
‡ 5HFHLYH,VVXH ‡ $FFXUDWH7LPHO\5HSRUWLQJ
‡ &RPSURPLVH3ODQ ‡ ([HFXWH&RPSURPLVH3ODQ

‡ 3URYLGHV1HWZRUN&RQQHFWLYLW\ ‡ 3RVLWLRQ6HFXUH6\VWHPV
‡ 1HWZRUN5HGXQGDQF\ ‡ ,QFRUSRUDWHH[WHUQDODVVHWVLQSODQ
‡ ([WHUQDO&RRUGLQDWLRQ ‡ 2SHUDWRUWUDLQLQJ7URXEOHVKRRWLQJ
‡ 6\VWHPPDLQWHQDQFH

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

)'**)$+$%$&'((,%$$-.*/0%/12&/3*)$
/33'%-$&

ƒ 0LVVLRQ
ƒ &RQFHSWRIRSHUDWLRQ
ƒ &RPPDQGHU¶V,QWHQW
ƒ 7KHHQHP\VLWXDWLRQ
ƒ $Q\VSHFLDOILUHV SUHSDUDWLRQILQDOSURWHFWLYHILUHV )3) 
LOOXPLQDWLRQ 
ƒ 0DQHXYHUFRQWUROPHDVXUHV
ƒ 7LPHDYDLODEOH
ƒ &KDLQRIFRPPDQG
ƒ +RZZKHUHWKH&RPPDQGHUFDQEHORFDWHG
ƒ 5HKHDUVDOWLPHVDQGORFDWLRQV
ƒ &(UHTXLUHPHQWV

)'**)$ /33'%-$&+$%$&'((,%$$-.*/0%/12&/3
*)$

ƒ &(VWDWXV
ƒ &RPPXQLFDWLRQUHVRXUFHVDYDLODEOH
ƒ &RPPXQLFDWLRQVXSSRUWDYDLODEOH PRELOHVXEVFULEHUHTXLSPHQW
06( FRYHUDJH 
ƒ 6SHFLDODGGLWLRQDOWUDLQLQJUHTXLUHPHQWV
ƒ 0RGLILFDWLRQVLQVLJQDORSHUDWLQJLQVWUXFWLRQV 62, 
ƒ )UHTXHQF\FKDQJHVDOWHUQDWHPHDQVRIFRPPXQLFDWLRQV
ƒ $QWLMDPPLQJSODQ
ƒ 5HWUDQVPLVVLRQ 5(75$16 FDSDELOLW\


%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  
$EDVLF QRWDOOLQFOXVLYH OLVWRIGRFWULQDOUHVRXUFHVDYDLODEOHWRWKH
6

)02SHUDWLRQDO7HUPVDQG*UDSKLFV6HSWHPEHU
)02SHUDWLRQV)HEUXDU\
)0,QIRUPDWLRQ2SHUDWLRQV'RFWULQH7DFWLFV7HFKQLTXHVDQG
3URFHGXUHV1RYHPEHU
)07KH,QIDQWU\%DWWDOLRQ'HFHPEHU
)07KH%ULJDGH&RPEDW7HDP$XJXVW
)00XOWL6HUYLFH7DFWLFV7HFKQLTXHVDQG3URFHGXUHVIRU
7DFWLFDO&RQYR\2SHUDWLRQV0DUFK
)0$UP\3ODQQLQJDQG2UGHUV3URGXFWLRQ-DQXDU\
)0&RPSRVLWH5LVN0DQDJHPHQW$XJXVW
)00LVVLRQ&RPPDQG&RPPDQGDQG&RQWURORI$UP\)RUFHV
$XJXVW
)09LVXDO,QIRUPDWLRQ2SHUDWLRQV-DQXDU\
)01HWZRUN2SHUDWLRQV7%3$SULO
)07UDLQLQJWKH)RUFH2FWREHU
)0%DWWOH)RFXVHG7UDLQLQJ6HSWHPEHU
)0&RPEDW1HW5DGLR2SHUDWLRQV2FWREHU
)06LJQDO6XSSRUW(FKHORQV&RUSVDQG%HORZ (&% 
'HFHPEHU
)06LJQDO/HDGHUV*XLGH-XQH
)0&RPEDW&RPPXQLFDWLRQVZLWKLQWKH'LYLVLRQ +HDY\DQG
/LJKW $SULO
)00RELOH6XEVFULEHU(TXLSPHQW 06( 2SHUDWLRQV-XQH

)0,7KH2SHUDWLRQV3URFHVV0DUFK
)0,6LJQDO6XSSRUWWR7KHDWHU2SHUDWLRQV-XO\
)0,$UP\773IRUWKH-1116HSWHPEHU
)0,$UP\(OHFWURPDJQHWLF6SHFWUXP2SHUDWLRQV6HS
$QXPEHURI)0,;;VHULHVPDQXDOVFXUUHQWO\LQGHYHORSPHQW

*HQHUDO'XWLHVDQG5HVSRQVLELOLWLHVRIWKH
&RPPXQLFDWLRQV&KLHI

$W%1OHYHOXVXDOO\DQHQOLVWHGVLJQDOVSHFLDOLVWILOOVWKHSRVLWLRQRI
&RPPXQLFDWLRQV&KLHI+HLVVXSHUYLVHGE\WKH67KHFRPPXQLFDWLRQV
FKLHISURYLGHVFRPPXQLFDWLRQVHUYLFHVIRUWKH%1KHDGTXDUWHUV +4 ,Q
GRLQJVRKHVXSHUYLVHVDQGRSHUDWHVDKRXUPHVVDJHFHQWHUDQG
HVWDEOLVKHVDQGPDLQWDLQVOLDLVRQZLWKVXSSRUWLQJFRPPXQLFDWLRQVHUYLFHV
7KH%1&RPPXQLFDWLRQV&KLHIDOVRSHUIRUPVWKHIROORZLQJ
ƒ 'LUHFWVDQGVXSHUYLVHVWKHLQVWDOODWLRQDQGRSHUDWLRQRIVXERUGLQDWH
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
XQLWFRPPXQLFDWLRQV\VWHPV
ƒ 3ODQVVXSHUYLVHVDQGLQVSHFWVFRPPXQLFDWLRQSURFHGXUHVRI
VXERUGLQDWHXQLWV
ƒ 3UHSDUHVPDLQWDLQVGLVWULEXWHVDQGVHFXUHVWKH%162,
ƒ (VWDEOLVKHVDQGGLUHFWVFRPPXQLFDWLRQWUDLQLQJPDLQWHQDQFHDQG
UHSDLUIDFLOLWLHVLQWKH%1+4DQGVXERUGLQDWHXQLWV
ƒ $GYLVHVWKH&RPPDQGHURQFRPPXQLFDWLRQPDWWHUV

)$'%-#('%%4%+

6LQFHWKH%1PXVWEHDEOHWRUHFHLYHSURFHVVDQGWUDQVPLWRUGHUVUDSLGO\
WKH6PXVWHQVXUHWKDWFRPPXQLFDWLRQVDUHSODQQHGHDUO\DQGLQGHWDLO
IRUHYHU\SKDVHRIDQRSHUDWLRQ7KH6LVDQDFWLYHPHPEHURIWKHVWDII
SODQQLQJFHOOIRUWKH0LOLWDU\'HFLVLRQ0DNLQJ3URFHVV 0'03 )RUD
GHVFULSWLRQRISRWHQWLDO6LQYROYHPHQWLQWKH0'03VHHSDJHV
+HGHWHUPLQHVWKHVXSSRUWDELOLW\DQGIHDVLELOLW\RIWKHVLJQDOSODQYHUVXV
WKHVFKHPHRIPDQHXYHU(DUO\LQYROYHPHQWLQWKH0'03E\WKH%16
LVFULWLFDOWRWKHVXFFHVVIXOGHYHORSPHQWRIDFRPSUHKHQVLYHDQG
FRPSOLPHQWDU\VLJQDOSODQ*RRGWHUUDLQDQDO\VLVFRPSHWHQWDVVHW
PDQDJHPHQWDQGHQGOHVVVWDIIFRRUGLQDWLRQSURGXFHVXFFHVV3ODQQLQJLQ
VXSSRUWRIRSHUDWLRQVUHTXLUHVWKH6WRWKRURXJKO\XQGHUVWDQGWKH
IROORZLQJHOHPHQWVLQJUHDWGHWDLO
ƒ 7KHIULHQGO\PDQHXYHUSODQDVGHYHORSHGLQVWDIIZDUJDPLQJWR
LQFOXGHFRQWLQJHQFLHV 
ƒ 7KHHQHP\WKUHDWERWKWHPSODWHGDQGDFWXDO
ƒ 7HUUDLQWKURXJKDQDO\VLVDVVLVWHGSURGXFWVDYDLODEOHLQFRPEDWWDFWLFDO
RSHUDWLRQFHQWHUV 72& 
ƒ (TXLSPHQW

)$'%- /35'*$* '-4/

7KHDGYDQWDJHRIFRPEDWQHWUDGLR &15 LVWKDWLWLVHDVLO\LQVWDOOHGDQG
KLJKO\PRELOH&RPEDWQHWVDUHIRUPHGE\IXQFWLRQVVXFKDVRSHUDWLRQVRU
ORJLVWLFVDQGFRQWDLQVSHFLILFJURXSVRIXVHUVZLWKLQWKHXQLW7KH
VWUXFWXUHRIDQHWGHSHQGVRQWKHH[LVWLQJVLWXDWLRQFRPPDQGJXLGDQFH
DQGDYDLODEOHHTXLSPHQW

+LJKIUHTXHQF\ +) FRPPXQLFDWLRQV HJ$135&$1*5&
$135& LVWKHRQO\WDFWLFDOFRPPXQLFDWLRQVDVVHWWKDWPD\DFKLHYH
ORQJUDQJHFRPPXQLFDWLRQVLQGHSHQGHQWRIWHUUHVWULDORUVDWHOOLWHUHOD\V
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
 ! 
7KHXVHRIDPSOLWXGHPRGXODWHG $0 UDGLRVHWVRSHUDWLQJLQWKHKLJK
IUHTXHQF\UDQJH JUHDWHUJURXQGZDYH JDLQVJUHDWHUGLVWDQFHWKDQGR
IUHTXHQF\PRGXODWLRQ )0 UDGLRV

)DVWPRYLQJRSHUDWLRQVRYHUH[WHQGHGGLVWDQFHVW\SLFDOO\H[FHHGWKHUDQJH
FDSDELOLWLHVRI)0UDGLRV7KHSULPDU\PLVVLRQRIVLQJOHFKDQQHOVDWHOOLWH
FRPPXQLFDWLRQV 6$7&20 LVWRH[WHQGWKHUDQJHRIWKH&15&
UHFRQQDLVVDQFHLQWHOOLJHQFHVXUYHLOODQFHDQGWDUJHWDFTXLVLWLRQPLVVLRQV
FDQDOOEHSHUIRUPHGIURPDQXOWUDKLJKIUHTXHQF\ 8+) 6$7&20
WHUPLQDO

6$7&20SURYLGHVUHOLDEOHFRPPXQLFDWLRQVLQDKLJKO\SRUWDEOH HLWKHU
PDQSDFNRUYHKLFXODU FRQILJXUDWLRQDQGJUHDWO\H[WHQGVWKHUDQJHRI
&15QHWZRUNV

)$'%-$*1/&0.

7KH6LVUHVSRQVLEOHIRUQHWVXSHUYLVLRQDQGHQVXULQJWKDWWKHXVHUVNQRZ
KRZWRRSHUDWHWKHV\VWHP7KLVLQFOXGHV
ƒ (QVXULQJXQLWSHUVRQQHOUHPDLQSURILFLHQWRQ&15
ƒ (QVXULQJDOOXQLWUDGLRRSHUDWRUVDUHIDPLOLDUZLWKSURSHU)0QHW
SURFHGXUHVDQWLMDPPLQJSODQVDQGUHWUDQVPLVVLRQRSHUDWLRQV
ƒ 0RQLWRULQJ)0QHWGLVFLSOLQHDQGPDNLQJFRUUHFWLRQVDVQHFHVVDU\

6*/3'*4/%'%-%2/&3'*4/%'%'+$3$%*

7KH6LVUHVSRQVLEOHIRU,QIRUPDWLRQ0DQDJHPHQW ,0 ZLWKLQWKH%1LQ
FRRUGLQDWLRQZLWKWKHEDWWOHVWDII,0SHUVRQQHODUHSRVLWLRQHGWREHVW
VXSSRUWWKH&RPPDQGHU¶V,QWHQWZLWKSULRULW\QRUPDOO\WRWKH6
2SHUDWLRQV&HOODQGRWKHUFULWLFDOFHOOVZLWKLQWKHFRPPDQGSRVW &3 

,0UHVSRQVLELOLWLHVRIWKH6LQFOXGH
ƒ 3UHSDULQJPDLQWDLQLQJDQGXSGDWLQJ,0HVWLPDWHVSODQVDQGRUGHUV
SHUWKH&RPPDQG,QIRUPDWLRQ0DQDJHPHQW3ODQ &,03 
ƒ 6XSSRUWLQJ&,03LPSOHPHQWDWLRQDWWKH7DFWLFDODQG0DLQ&3V EDVHG
RQ6DQG%'(6GLUHFWLRQDQGJXLGDQFH 
ƒ )DFLOLWDWLQJWKHWLPHO\IORZRIUHODWLYHLQIRUPDWLRQ 5, DQGHQDEOLQJ
WKHVWDIIWRSURFHVVGLVSOD\VWRUHDQGGLVVHPLQDWHWKHFRPPRQ
RSHUDWLRQDOSLFWXUH &23 
ƒ (VWDEOLVKLQJSURFHGXUHVWKDWHQDEOHWKHVWDIIWRPDLQWDLQDWLPHO\IORZ
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
 " 
RI5, ZLWKWKHVWDII 
ƒ (VWDEOLVKLQJLQIRUPDWLRQV\VWHP ,1)26<6 WRGHYHORSWKH&23
ZLWKWKHVWDII 
ƒ &RRUGLQDWLQJWKHVWDIILQWHUDFWLRQQHFHVVDU\WRGHYHORSWKH&23ZLWKLQ
&3VDQGDWHDFKPDMRUVXERUGLQDWHFRPPDQG ZLWKWKHVWDII 
ƒ 3URYLGLQJWKHDUFKLWHFWXUHQHFHVVDU\WRFROOHFWSURFHVVGLVSOD\VWRUH
DQGGLVVHPLQDWH5,WRVXSSRUW&IXQFWLRQV ZLWKWKHVWDII 
ƒ )DFLOLWDWLQJVWDIISUHVHQWDWLRQRI5,DFFRUGLQJWRWKHTXDOLW\FULWHULDRI
DFFXUDF\WLPHOLQHVVXVDELOLW\FRPSOHWHQHVVSUHFLVLRQDQGUHOLDELOLW\
ƒ &RRUGLQDWLQJSODQQLQJDQGGLUHFWLQJWKHHVWDEOLVKPHQWRI&V\VWHP
DUFKLWHFWXUHVWKDWSURYLGHDVRXQGIRXQGDWLRQIRUFXUUHQWDQGIXWXUH,0
ZLWKWKH6DQGWKHVWDII 
ƒ 3URYLGLQJLQIRUPDWLRQV\VWHPV ,1)26<6 VXSSRUWWKURXJK²
• 'LUHFWLQJDQGVXSHUYLVLQJDXWRPDWLRQPDQDJHPHQWIXQFWLRQV
DVXEVHWRI,1)26<6
• 3ODQQLQJDQGHQVXULQJWKDWGHSOR\HGQRQPLOLWDU\,1)26<6
DUHRSHQDQGQRQSURSULHWDU\ZLWKFRPPRQO\DFFHSWHG
VWDQGDUGVDQGSURWRFROVWKDWLQWHURSHUDWHZLWKPLOLWDU\
,1)26<6
• (VWDEOLVKLQJDQGSURYLGLQJDXWRPDWLRQFRQILJXUDWLRQ
PDQDJHPHQWIRUDOO,1)26<6KDUGZDUHVRIWZDUHHPSOR\HG
E\WKHFRPPDQG
• &RRUGLQDWLQJSODQQLQJDQGGLUHFWLQJWKHXVHRI&
,1)26<6DQGDXWRPDWLRQVRIWZDUHDQGKDUGZDUHHPSOR\HG
E\WKHFRPPDQG

$7/&*.'%- /35'* $8/&-.

)086$UP\5HSRUWVDQG0HVVDJH)RUPDWVLVWKHFDSVWRQH
PDQXDOIRUVWDQGDUGL]HGUHSRUWDQGPHVVDJHIRUPDWV,WSURYLGHVD
VWDQGDUGUHDGLO\DYDLODEOHUHIHUHQFH6ROGLHUVFDQDFFHVVIRUUHSRUWDQG
PHVVDJHWHPSODWHV)0IRUPDWVDUHGHULYHGIURPH[LVWLQJ$UP\
%DWWOH&RPPDQG6\VWHP $%&6 8QLWHG6WDWHV0HVVDJH7H[W)RUPDWV
8607) $OOLHG3URFHGXUHV3XEOLFDWLRQ $33 IRUPDWVDQGQXPHURXV
XQLW623V

.QRZOHGJHRIWKHYDULRXVUHSRUWVWKDWZLOOEHUHTXLUHGLQWHUQDOWRWKH%1
DQGH[WHUQDOWRKLJKHUDGMDFHQWDQGVXERUGLQDWHHOHPHQWVLVFULWLFDOWR
PLVVLRQSODQQLQJDQGH[HFXWLRQ&RPPDQGHUVDQGVWDIIRIILFHUVVKRXOG
HVWDEOLVKWKHUHSRUWW\SHVDQGIRUPDWVWKH\UHTXLUHDQGLQFOXGHLQWKHXQLW
7$&623
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  

$VWKH$UP\PRYHVWRZDUGVPRUHGLJLWDOL]DWLRQPRUHPHVVDJHVDUH
IRUPDWWHGHOHFWURQLFDOO\FRPSDWLEOHZLWKWKH$%&67KHWDEOHVLQWKLV
VHFWLRQIURP)0$SSHQGL[$SURYLGHDVDPSOHRIWKHPDJQLWXGHRI
PHVVDJHVDYDLODEOHWRWKHYDULRXV$%&6V\VWHPVDQGGHPRQVWUDWHWKH
FURVVWDONWKDWWKHV\VWHPVIDFLOLWDWH

7KHIROORZLQJWDEOHLVQRWLQWHQGHGWREHDOOLQFOXVLYHRIWKHUHSRUWVWKDW
PD\EHXVHGUDWKHUDVH[DPSOHVRIUHSRUWVWKH%1PD\XVH7KLVWDEOH
SURYLGHVDQH[DPSOHRIWKHPDMRUUHSRUWVDQGWKHFRUUHVSRQGLQJ$%&6
LGHQWLILFDWLRQQXPEHU1XPEHUVVXFKDV.DUHGHULYHGIURP)RUFH
;;,%DWWOH&RPPDQG%'(DQG%HORZ )%&% WKHRQO\V\VWHPWKDW
SURYLGHVPHVVDJHVVROHO\XSWKHFKDLQRIFRPPDQG2WKHUV\VWHPVVXFKDV
WKH0DQHXYHU&RQWURO6\VWHP 0&6 WKH$OO6RXUFH$QDO\VLV6\VWHP
$6$6 DQGWKH$GYDQFHG)LOHG$UWLOOHU\7DFWLFDO'DWD6\VWHP
$)$7'6 SURYLGHPHVVDJHVXSDQGGRZQWKHFKDLQ










7KLVSRUWLRQOHIWEODQNLQWHQWLRQDOO\

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

&RPEDW5HSRUWV

6DPSOH%15HSRUWVLQ$%&6

5HSRUW1DPH %DVLF'HVFULSWLRQRI5HSRUW 1XPEHU
23(5$7,216
2325' 2SHUDWLRQV2UGHULVXVHGWRSURYLGHWKHVWDQGDUGPLOLWDU\ILYHSDUDJUDSK $
RUGHUDQGLVXVHGWRWUDQVPLWLQVWUXFWLRQVDQGGLUHFWLYHVWRVXERUGLQDWHDQG 
VXSSRUWLQJPLOLWDU\RUJDQL]DWLRQV

6,75(3 6LWXDWLRQ5HSRUWLVXVHGWRLQIRUPXQLWFRPPDQGHUVRIRSHUDWLRQSODQV &
 23/$1 XQLWUHDGLQHVVGHJUDGDWLRQDQGRSHUDWLRQDOVLWXDWLRQVDQG 
VXPPDULHV

63276$/87( 63276$/87(5HSRUWLVXVHGWRSURYLGHWLPHO\LQWHOOLJHQFHRUVWDWXV .
 UHJDUGLQJHYHQWVWKDWFRXOGKDYHDQLPPHGLDWHDQGVLJQLILFDQWHIIHFWRQ
FXUUHQWSODQQLQJDQGRSHUDWLRQV
1%& 1XFOHDU%LRORJLFDO&KHPLFDO 1%& 5HSRUW2QHLVXVHGWRWUDQVPLWDQ .
 REVHUYHU
VLQLWLDOUHSRUWRIEDVLFGDWDSHUWLQHQWWRD1%&DWWDFN 
1%& 1%&LVXVHGWRGLVVHPLQDWHHYDOXDWHGGDWDRIDQ1%&DWWDFN *
 
1%& 1%&LVXVHGWRSDVVLPPHGLDWHZDUQLQJRISUHGLFWHGFRQWDPLQDWLRQDQG &
 KD]DUGDUHDVIROORZLQJQXFOHDUELRORJLFDODQGFKHPLFDODWWDFNV 

1%& 1%&LVXVHGWRUHSRUW1%&PRQLWRULQJDQGVXUYH\UHVXOWV &
 
1%& 1%&LVXVHGWRSDVVLQIRUPDWLRQRQDUHDVRIDFWXDO1%&FRQWDPLQDWLRQ &

1%& 1%&LVXVHGWRSDVVGHWDLOHGLQIRUPDWLRQRQFKHPLFDORUELRORJLFDODWWDFNV &
  
3/$125'&+* 2SHUDWLRQV3ODQ&KDQJHLVXVHGWRXSGDWHRUFKDQJHH[LVWLQJ23/$1VDQG (
2325'V
,17(//,*(1&(
5), 5HTXHVWIRU,QIRUPDWLRQLVXVHGWRUHTXHVWLQIRUPDWLRQIURPRWKHUXQLWV )
  
55, 5HVSRQVHWR5HTXHVWIRU,QIRUPDWLRQLVXVHGWRUHSO\WRUHTXHVWVIRU )
 LQIRUPDWLRQ 

(1$&7:31 (QHP\$FWLYLW\5HSRUWLVXVHGWRH[FKDQJHVSHFLILFHQHP\DFWLYLW\DQG 6
ZHDSRQGDWD
3(56211(/
0('(9$& 0HGLFDO(YDFXDWLRQ5HTXHVWLVXVHGWRUHTXHVWPHGLFDOHYDFXDWLRQRI .
 ZRXQGHGRULQMXUHGSHUVRQQHO 

*(1$'0,1 *HQHUDO$GPLQLVWUDWLYH0HVVDJHLVXVHGWRSDVVDGPLQLVWUDWLYHLQIRUPDWLRQ )
/2*,67,&6
5(6285&(6 5HVRXUFH5HSRUWLVXVHGWRUHSRUWXQLWORFDWLRQVDQGXQLWVXSSO\ORFDWLRQV 6
  
683&21675$,17 6XSSO\&RQVWUDLQWV5HSRUWLVXVHGWRLGHQWLI\WKHSULRULW\RILVVXHRIVXSSOLHV 6
 WRGLIIHUHQWXQLWVDQGWRUHSRUWRQVKRUWDJHVRIVXSSOLHVDQGSHUVRQQHOWKDW 
FRXOGVLJQLILFDQWO\DIIHFWRSHUDWLRQV
&7,/ &RPPDQGHU
V7UDFNHG,WHP/LVWLVXVHGWRLQIRUPXQLWVRIPDWHULHODQG 6
SHUVRQQHOWKDWDIRUFHOHYHOFRPPDQGHUKDVGLUHFWHGWREHWUDFNHG
 
0DQ\RWKHUUHSRUWVPD\EHJHQHUDWHGGHSHQGLQJRQWKHUHTXLUHPHQWVRI
WKHYDULRXVEDWWOHFRPPDQGV\VWHPVEHLQJXVHGE\WKHXQLW7KHIROORZLQJ
WDEOHGHSLFWVWKHFURVVWDONRIFRPPRQDXWRPDWHGUHSRUWVZLWKLQ$%&6

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

0HVVDJH&URVVWDONDQG$%&6




.QRZOHGJHRIWKHYDULRXVUHSRUWVWKDWZLOOEHUHTXLUHGLQWHUQDOWRWKH%1
DQGH[WHUQDOWRKLJKHUDGMDFHQWDQGVXERUGLQDWHHOHPHQWVLVFULWLFDOWR
PLVVLRQSODQQLQJDQGH[HFXWLRQ&RPPDQGHUVDQGVWDIIRIILFHUVVKRXOG
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
HVWDEOLVKWKHUHSRUWW\SHVDQGIRUPDWVWKH\UHTXLUHDQGLQFOXGHLQWKH
XQLW7$&623

773Ź 'HYHORSDWUDFNLQJV\VWHPIRUUHSRUWVDQGVXVSHQVHV,WZLOO
HDVHWKHDGPLQLVWUDWLYHEXUGHQ
%1&RPPDQGHU¶V+DQGERRN86$:&

&RPEDW5HFRUGV -RXUQDOVDQG-RXUQDO)LOHV 

6WDIIVHFWLRQVPDLQWDLQFKURQRORJLFDOUHFRUGVRIHYHQWVLQDMRXUQDO
QRUPDOO\RQD'DLO\6WDII-RXUQDO'HSDUWPHQWRIWKH$UP\ '$ )RUP
7KHIRUPQRUPDOO\FRYHUVDKRXUSHULRGRUDJLYHQVKLIW(QWULHV
FRQWDLQVXIILFLHQWGHWDLOWRGHVFULEHDQGHVWDEOLVKWKHWLPHDQGSODFHRI
LPSRUWDQWHYHQWV

$MRXUQDOILOHLVDIROGHUWKDWFRQWDLQVHQWULHVDQGPDWHULDOVWRVXSSRUW
MRXUQDOHQWULHV7KHVHLQFOXGHFRSLHVRIRUGHUVUHSRUWVPHVVDJHVPDSV
HWF7KHMRXUQDOILOHLVPDLQWDLQHGZLWKWKHMRXUQDO

&RPEDW5HFRUGV :RUNERRNV 

$ZRUNERRNLVDQLQIRUPDOLQGH[HGFROOHFWLRQRILQIRUPDWLRQREWDLQHG
IURPDYDULHW\RIVRXUFHVWRLQFOXGHZULWWHQRURUDORUGHUVPHVVDJHV
MRXUQDOHQWULHVHWF,WDLGVWKHVWDIIRIILFHU¶VHIIRUWVWRFROOHFWLQIRUPDWLRQ
HVSHFLDOO\WRPDLQWDLQDQXSGDWHGVWDIIHVWLPDWHDQGWRSUHSDUHSODQVDQG
RUGHUV

7KHUHLVQRVSHFLILFIRUPDW$ZRUNERRNLVXVXDOO\WDEEHGWRFRLQFLGHZLWK
WKHUHVSHFWLYHVWDIIHVWLPDWHIRUPDWRUWDEEHGE\VXEMHFWDUHD

773Ź (DFKVWDIIHOHPHQWVKRXOGSXEOLVKD³WHUPVRIUHIHUHQFH´
GRFXPHQWZKLFKGHVFULEHVGXWLHVDQGUHVSRQVLELOLWLHVRINH\
PHPEHUV,WVKRXOGLQFOXGHSRLQWVRIFRQWDFW 32& ZLWK
SKRQHQXPEHUV
%1&RPPDQGHU¶V+DQGERRN86$:&


%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

%2/&3'*4/%..6&'%8$

7RS7HQ,$³1HHG±WRNQRZV´

 6ROGLHUV0RVW.QRZ$SSOLFDEOH,$'RFWULQH7RROV$5
‡ ',6$67,*V KWWSLDVHGLVDPLOVWLJVVWLJ
‡ 'R' VHULHV
‡ KWWSVLQIRUPDWLRQDVVXUDQFHXVDUP\PLO
‡ $5

 8QLWV0XVW$OORFDWH6ROGLHUV6SHFLILFDOO\IRUWKH,$0LVVLRQ
‡ 'RQHULJKW,$&1'LVD0LVVLRQ
‡ 237(032SXWV,$RQWKHEDFNEXUQHU
‡ 0DNH$:DUUDQWLIDYDLODEOHWKH,$&1'OHDG
 ,QIOX[RI1HZ&2766\VWHPV1HWZRUN.LOOHUV
‡ 1HZV\VWHPVDUULYHRQDZHHNO\EDVLV
‡ 1HZV\VWHPVFRQWDLQVHYHUDOYXOQHUDELOLWLHV
‡ &HUWLILFDWLRQSURFHVVPXVWEHIROORZHG
 &RPPDQG(PSKDVLV,PSRUWDQWWR,$
‡ &RQIOLFWEHWZHHQIXQFWLRQDOLW\DQGVHFXULW\
‡ 6WXGLHVVKRZLPSRUWDQFHRIFRPPDQGHPSKDVLV

 'LVDVWHU5HFRYHU\DQG&2233ODQVDUH9LWDO
‡ ³0XUSK\´ DOZD\VUHDUVKLVKHDG
‡ $%DFNXS3ODQGRHVQRWD'5RU&2233ODQPDNH
‡ &RRUGLQDWLRQZLWKSHULSKHUDOKLJKHUXQLWVHVVHQWLDO

 $XGLW7UDLODQG/RJ5HYLHZV0XVW%H3HUIRUPHG
‡ $XGLWDFFHVVHYHQWV
‡ $XGLWFKDQJHHYHQWV
‡ $XGLWPDQDJHPHQWHYHQWV
 8QGHUVWDQG5LVN0DQDJHPHQW3URFHGXUHV
‡ 7KUHDWSOXV9XOQHUDELOLWLHVHTXDOV5LVN
‡ $QDO\]HWKUHDWYXOQHUDELOLWLHVWRGHWHUPLQHFRXQWHUPHDVXUHV
‡ 5LVNPLQXV&RXQWHUPHDVXUHVHTXDOV$FFHSWDEOH5LVN
 (QYLURQPHQWDO6HFXULW\DV,PSRUWDQWDV3K\VLFDO6HFXULW\
‡ 7HPSHUDWXUH'XVW3RZHU

 ,$3ROLFLHVDV,PSRUWDQWDV,$7HFKQLFDO6ROXWLRQV )RU([DPSOH
‡ $FFHVVFRQWUROSROLFLHV
‡ (YLGHQFHFROOHFWLRQSROLFLHV
‡ $XGLWWUDLOORJJLQJSROLFLHV

 75$,175$,175$,1
‡ ,$&1'LVDSHULVKDEOHVNLOO
‡ (;3(5,(1&(LVWKH0267,03257$17VXFFHVVIDFWRU
‡ 'RQ¶WMXVWIRFXVRQQHWZRUNPDQDJHPHQW
‡ 0RUHKDQGVRQLVEHWWHU

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  
,QIRUPDWLRQDVVXUDQFH ,$ LVDFULWLFDOVHFXULW\UHVSRQVLELOLW\RIWKH6
6HFWLRQ,$HQVXUHVWKHFRQILGHQWLDOLW\LQWHJULW\DQGDYDLODELOLW\RI
LQIRUPDWLRQDQGLQIRUPDWLRQV\VWHPV,$FRQVLVWVRIWHQIXQFWLRQV
ƒ $FFHVVFRQWUROWRLQIRUPDWLRQDQGLQIRUPDWLRQV\VWHPV
ƒ $SSOLFDWLRQVHFXULW\
ƒ &RQWLQXLW\RIRSHUDWLRQVDQGGLVDVWHUUHFRYHU\
ƒ &RPPXQLFDWLRQVVHFXULW\ &206(& 
ƒ 5LVN$QDO\VLV FRYHUHGLQPRUHGHWDLOLQ3DUW 
ƒ /HJDODQGUHJXODWRU\FRPSOLDQFH
ƒ ,$&RPSXWHU1HWZRUN'HIHQVH &1' SROLFLHVDQGSURFHGXUHV
ƒ 3K\VLFDO HQYLURQPHQWDO VHFXULW\
ƒ 6HFXULW\LQGHYHORSPHQWDQGDFTXLVLWLRQ
ƒ 7HOHFRPPXQLFDWLRQDQGQHWZRUNVHFXULW\VROXWLRQV

6HFWLRQ±&RPPXQLFDWLRQV6XSSRUWWR3ODQQLQJ

$%$&'(

,QRUGHUWRDGHTXDWHO\VXSSRUW%1SODQQLQJDQGH[HFXWLRQWKH6DQGKLV
VWDIIQHHGWRKDYHDJHQHUDOXQGHUVWDQGLQJRIWKHPDMRUDUHDVDQGSURFHVVHV
ZKHUHWKHVWDIIPHPEHUVSDUWLFLSDWH7KLVFRXOGLQFOXGHLQYROYHPHQWLQ
FULWLFDOSURFHVVHVVXFKDVLQWHOOLJHQFHVXUYHLOODQFHDQGUHFRQQDLVVDQFH
,65 DQGLQWHOOLJHQFHSUHSDUDWLRQRIWKHEDWWOHILHOG ,3% RUWKH
GHYHORSPHQWRISODQVRUGHUVDQGHVWLPDWHVRUH[HFXWLRQHYHQWVVXFKDV
EDWWOHUK\WKPEDWWOHWUDFNLQJDQGUHKHDUVDOV7KLVVHFWLRQDWWHPSWVWR
SURYLGHDQRYHUYLHZRIWKHVHDUHDVDQGSURFHVVHVDQGVRPHJXLGHOLQHVWKDW
WKH6PLJKWILQGXVHIXO+LVWRULFDOO\,65DQG,3%KDYHSURYLGHG
VLJQLILFDQWFKDOOHQJHVWRWKH%1VWDII










%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

%*$((4+$%8$#&$7'&'*4/%/2*)$'**($24$(-9#:

,3%*UDSKLF


7HUUDLQ
*XLGDQFH
++4

:HDWKHU

'RFWULQH
(QHP\
2UGHUV3ODQV ,5V
0LVVLRQ 0&22
&&,53,5 &RQGXFW,QWHOOLJHQFH *UDSKLF2YHUOD\V
7HPSODWHV
(QHP\&DSDELOLWLHV 3UHSDUDWLRQRIWKH
+97/
6,77(03V  %DWWOHILHOG $257KUHDW
(9(17(036
,QGLFDWLRQV $VVHVVPHQW
52(*XLGDQFH
&RPPDQGHU

&ROOHFWLRQ5407V
5),V
6WDII

,QLWLDO236(&5407V
,QWHOOLJHQFH*DSV
(&2$V 

*HQHUDO

,3%FDQEHEHVWGHVFULEHGDVWKHSURFHVVRIXQGHUVWDQGLQJWKHEDWWOHILHOG
WKHHQHP\DQGWKHRSWLRQVSUHVHQWHG7KHREMHFWLYHRI,3%LVDFRPPRQ
XQGHUVWDQGLQJDFURVVWKHVWDII &RPPDQGHULQFOXVLYH RIWKHHIIHFWVRIWKH
HQYLURQPHQW WHUUDLQZHDWKHUFLYLOSRSXODWLRQVDQGLQIUDVWUXFWXUH RQERWK
IULHQGO\DQGHQHP\RSHUDWLRQV,WLVDFRQWLQXRXVV\VWHPDWLFODERULQWHQVLYH
SURFHVVWKDWEHJLQVZLWKDQDO\VLVRIHQHP\GRFWULQHDQGFDSDELOLWLHVLQD
JHRJUDSKLFDODUHDWKHWHUUDLQDQGWKHHIIHFWVRIZHDWKHURQWKDWWHUUDLQ7KH
SURGXFWVRI,3%DUHJUDSKLFRYHUOD\VDQGWHPSODWHVXVHGWRYLVXDOL]HDQGSUHGLFW
HQHP\LQWHQWLRQV 6RXUFH)0  

:KLOHWKH6DQG6DUHPDMRUSOD\HUVLQWKH,3%SURFHVVWKHHQWLUHVWDII
LQFOXGLQJWKH6 FRQWULEXWHVDQGSURYLGHVWKHLUXQLTXHSHUVSHFWLYHVDQGLQSXW

,3%LVGLUHFWO\UHODWHGWRVHYHUDONH\SURFHVVHV
ƒ 0'03
ƒ /RJLVWLFV3UHSDUDWLRQRIWKH%DWWOHILHOG /3% 
ƒ &ROOHFWLRQPDQDJHPHQW
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  

,3%FRQVLVWVRIIRXUVWHSVZKLFK\RXSHUIRUPHDFKWLPH\RXFRQGXFW,3%
7KHVHIRXUVWHSVFRYHUHGLQGHWDLOLQ)0&KDSWHUDUH
ƒ 'HILQHWKHEDWWOHILHOGHQYLURQPHQW
ƒ 'HVFULEHWKHEDWWOHILHOG
VHIIHFWV
ƒ (YDOXDWHWKHWKUHDW
ƒ 'HWHUPLQHHQHP\FRXUVHVRIDFWLRQ (&2$ 

773Ź 7KH;2VXSHUYLVHV,3%WKH6OHDGV,3%DQGWKHHQWLUH
VWDII LQFOXGLQJWKH6 GHYHORSVWKH,3%

7KHIROORZLQJLVDVDPSOLQJQRWDOOLQFOXVLYHRIWKHFRRUGLQDWLRQSURYLGHG
E\WKH&RPPDQGHUDQGVHOHFWHGVWDIIRIILFHUVWRWKH,3%3URFHVV

&RPPDQGHU¶VSDUWLFLSDWLRQLQ,3%
ƒ $SSURYHVSULRULW\LQIRUPDWLRQUHTXLUHPHQWV 3,5 
ƒ $VVLVWVLQVHOHFWLQJHQHP\¶VPRVWOLNHO\DQGPRVWGDQJHURXVFRXUVHV
RIDFWLRQ &2$ 
ƒ 3URYLGHVJXLGDQFHIRU,65SODQQLQJDQGKLJKSD\RIIWDUJHW +37 
VHOHFWLRQ

6¶VSDUWLFLSDWLRQLQ,3%
ƒ 3URYLGHVLQSXWRQHQHP\GRFWULQHDQGWDFWLFV
ƒ $VVLVWVWKH6WRGHYHORS3,5
ƒ 6HOHFWV+37VWDUJHWHGDUHDVRILQWHUHVW 7$, DQGGHFLVLRQSRLQWV
'3 ZLWKWKH6DQGILUHVXSSRUWRIILFHU )62 
ƒ $OORFDWHVUHVRXUFHVIRU,65SODQQLQJ
ƒ 'HYHORSVWKHGHFLVLRQVXSSRUWWHPSODWH '67 LQFRRUGLQDWLRQZLWKWKH
EDWWOHVWDII
ƒ ([HFXWHVVWDIIVXSHUYLVLRQRYHUHOHFWURQLFZDUIDUH (: 
SV\FKRORJLFDORSHUDWLRQV 36<23 RSHUDWLRQDOVHFXULW\ 236(& DQG
GHFHSWLRQDFWLYLWLHV

)62¶VSDUWLFLSDWLRQLQ,3%
ƒ 3ODQVDQGGLUHFWVILHOGDUWLOOHU\VXSSRUWWR,65FRXQWHU
UHFRQQDLVVDQFHHIIRUWV

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 ! 
ƒ $VVLVWVWKH6LQGHYHORSLQJVLWXDWLRQWHPSODWHV 6,77(03 DQG
HYHQWWHPSODWHV (9(17(03 RISUREDEOHHQHP\HPSOR\PHQWRIILUH
VXSSRUWDVVHWV
ƒ 3URYLGHVWKH6DQ\HQHP\LQWHOOLJHQFHJDLQHGWKURXJKGLYLVLRQ
DUWLOOHU\ ',9$57< FKDQQHOV
ƒ 3DUWLFLSDWHVLQWKHVHOHFWLRQRI+37V7$,VDQG'3V

6¶VSDUWLFLSDWLRQLQ,3%
ƒ 3ODQVDQGGLUHFWVFRPPXQLFDWLRQVDQGDXWRPDWLRQVXSSRUWWR,65
FRXQWHUUHFRQQDLVVDQFHHIIRUWV
ƒ $VVLVWVWKH6LQGHYHORSLQJVLWXDWLRQWHPSODWHV 6,77(03 DQG
HYHQWWHPSODWHV (9(17(03 RISUREDEOHHQHP\FRPPXQLFDWLRQV
DVVHWVDQGQRGHV
ƒ 3URYLGHVWKH6DQ\HQHP\LQWHOOLJHQFHJDLQHGWKURXJK++4&
FKDQQHOV
ƒ 3DUWLFLSDWHVLQWKHVHOHFWLRQRI+37V7$,VDQG'3V

6WHS±'HILQHWKH%DWWOHILHOG(QYLURQPHQW

7KH6SHUIRUPVWKHIROORZLQJDFWLRQV 6RXUFH)0 
ƒ ,GHQWLILHVFKDUDFWHULVWLFVRIWKHEDWWOHILHOGZKLFKZLOOLQIOXHQFH
IULHQGO\DQGWKUHDWRSHUDWLRQV
ƒ ,GHQWLILHVWKHOLPLWVRIWKHFRPPDQG¶VDUHDRIRSHUDWLRQV $2 DQGLWV
RSHUDWLRQDOHQYLURQPHQW
ƒ 5HFRPPHQGVLQLWLDOOLPLWVRIWKHDUHDRILQWHUHVW $2, 
ƒ ,GHQWLI\WKHDPRXQWRIGHWDLOUHTXLUHGDQGIHDVLEOHZLWKLQWKHWLPH
DYDLODEOHIRU,3%
ƒ ,GHQWLILHVH[LVWLQJGDWDEDVHVDQGJDSVLQFXUUHQWLQWHOOLJHQFHKROGLQJV
ƒ &ROOHFWPDWHULDODQGLQWHOOLJHQFHUHTXLUHGWRFRQGXFWWKHUHPDLQGHURI
,3%

6WHS±'HVFULEHWKH%DWWOHILHOG¶V(IIHFWV

7KH6DQDO\]HVDQGHYDOXDWHVWKHHIIHFWVRIWKHHQYLURQPHQWWKDWDIIHFW
ERWKVLGHVHVSHFLDOO\HIIHFWVWKDWRIIHUOLPLWDWLRQVDQGRSSRUWXQLWLHV7KH
DQDO\VLVDQGHYDOXDWLRQLQFOXGHV 6RXUFH)0 
ƒ 7HUUDLQ
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
 " 
ƒ :HDWKHU
ƒ 2WKHUIDFWRUVRIJHRJUDSK\
ƒ &LYLOFRQVLGHUDWLRQV
• 3ROLWLFV
• &LYLOLDQSUHVVPHGLD
• /RFDOSRSXODWLRQGHPRJUDSKLFV
• &LYLOLQIUDVWUXFWXUH

,3%SURGXFWVGHYHORSHGGXULQJ6WHSPD\LQFOXGHEXWQRWEHOLPLWHGWR
ƒ 3RSXODWLRQVWDWXVRYHUOD\
ƒ 2YHUOD\VGHSLFWLQJPLOLWDU\DVSHFWVDQGHIIHFWVRIWHUUDLQ
ƒ :HDWKHUDQDO\VLVPDWUL[
ƒ ,QWHJUDWHGSURGXFWV HJPRGLILHGFRPELQHGREVWDFOHRYHUOD\
0&22 

$QDO\]H0LOLWDU\$VSHFWVRI7HUUDLQ

7KHHQJLQHHUKDVDFFHVVWRVSHFLDOWHUUDLQGDWDEDVHVFRPSLOHGE\WKH
1DWLRQDO,PDJHU\DQG0DSSLQJ$JHQF\ 1,0$ 7(55$%$6(LI
DYDLODEOHDOVRRIIHUVDXWRPDWHGWHUUDLQDQDO\VLVFDSDELOLWLHV6SHFLDOL]HG
1,0$SURGXFWVDGGUHVVIDFWRUVVXFKDV
ƒ &URVVFRXQWU\PRELOLW\
ƒ 7UDQVSRUWDWLRQV\VWHPV URDGVDQGEULGJHV 
ƒ 9HJHWDWLRQ W\SHDQGGLVWULEXWLRQ 
ƒ 6XUIDFHGUDLQDJHDQGFRQILJXUDWLRQ
ƒ 6XUIDFHPDWHULDOV VRLOV 
ƒ *URXQGZDWHU
ƒ 2EVWDFOH

7KHVWDIIPXVWDJJUHVVLYHO\DFTXLUHDQGOHYHUDJHWHUUDLQSURGXFWVSURGXFHG
E\H[WHUQDOVRXUFHV

7KH³VRZKDW´RIWHUUDLQDQDO\VLVUHVXOWVLQUHFRPPHQGDWLRQVFRQFHUQLQJ
ƒ (QJDJHPHQWDUHDV ($ 
ƒ %DWWOHSRVLWLRQV %3 
ƒ ,QILOWUDWLRQODQHV
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
ƒ $YHQXHVRIDSSURDFK $$ 
ƒ 6SHFLILFORFDWLRQVIRUV\VWHPVDQGRUDVVHWV

7HUUDLQDQDO\VLVIDFWRUVLQFOXGH
ƒ 2EVHUYDWLRQDQGILHOGVRIILUH
• /HDGVWRSRWHQWLDO³ILUHVDFNV´DQG³NLOO]RQHV´
• ,GHQWLILHVGHIHQVLEOHWHUUDLQDQGV\VWHPORFDWLRQV
• ,GHQWLILHVREVHUYDWLRQDQGILUHVYXOQHUDELOLW\RIPDQHXYHU
IRUFHV
ƒ $YHQXHVRIDSSURDFK
• ,QFOXGHVPRELOLW\FRUULGRUV
ƒ .H\WHUUDLQ
ƒ 2EVWDFOHV QDWXUDODQGPDQPDGH 
• 5HVXOWVLQUHVWULFWLRQVWRPDQHXYHU
ƒ &RYHUDQGFRQFHDOPHQW

7KHVHIDFWRUVDUHNQRZQE\WKHDFURQ\P2$.2&,QWU\LQJWRVHHWKH
WHUUDLQWKH6DQGVWDIIEXLOGD0&22WRDVVLVWZLWKWKHDQDO\VLVRIWKH
$2DQGSRUWLRQVRIWKH$2,7KHIROORZLQJJUDSKLFSURYLGHVDQH[DPSOH
RIWKHEXLOGLQJ OD\HULQJ SURFHVVRIWKH0&22

773Ź 7KH6VKRXOGSURYLGHWKH6ZLWKWKHVLJQDO2$.2&
DVVHVVPHQWWRDVVLVWZLWK,3%DQGEXLOGLQJWKH0&22

(YDOXDWHWKH(IIHFWVRI7HUUDLQRQ0LOLWDU\2SHUDWLRQV

7KHHYDOXDWLRQRIWKHWHUUDLQ¶VHIIHFWVSURYLGHVWKH³VRZKDW´WRWKH
SUHYLRXVDQDO\VLV7KHWHUUDLQ¶VHIIHFWVDUHHYDOXDWHGRQRIIHQVLYHDQG
GHIHQVLYH&2$VIRUERWKIULHQGO\DQGHQHP\IRUFHV(YDOXDWLRQLGHQWLILHV
SRWHQWLDO±
ƒ ($V LIGHIHQGLQJ DQGDPEXVKVLWHV LIDWWDFNLQJ 
ƒ %3V IULHQGO\DQGHQHP\ 
ƒ ,PPHGLDWHRULQWHUPHGLDWHREMHFWLYHV
ƒ 3RWHQWLDOREVWDFOHORFDWLRQV IULHQGO\DQGHQHP\ 
ƒ $VVHPEO\GLVSHUVDODUHDV WLPHSHUPLWWLQJ 
ƒ 2EVHUYDWLRQSRVWV 23  WLPHSHUPLWWLQJ 
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
ƒ $UWLOOHU\ILULQJSRVLWLRQV WLPHSHUPLWWLQJ 
ƒ $LU'HIHQVH$UWLOOHU\ $'$ V\VWHPSRVLWLRQV WLPHSHUPLWWLQJ 
ƒ ,QWHOOLJHQFHWDUJHWDFTXLVLWLRQV\VWHPSRVLWLRQV WLPHSHUPLWWLQJ 
ƒ )RUZDUGDUHDDUPLQJDQGUHIXHOLQJSRLQWV )$$53  WLPHSHUPLWWLQJ 
ƒ /DQGLQJ]RQHV /= RUGURS]RQHV '=  WLPHSHUPLWWLQJ 
ƒ ,QILOWUDWLRQODQHV WLPHSHUPLWWLQJ 

$QDO\]H0LOLWDU\$VSHFWVRI:HDWKHU

/LNHWKHWHUUDLQWKHUHDUHWZRVXEHOHPHQWVRIWKLVVWHSDQDO\VLVDQG
HYDOXDWLRQ$QDO\VLVRIZHDWKHULQYROYHVWKHIROORZLQJ
ƒ 9LVLELOLW\ LQFOXGHVOLJKWGDWD 
ƒ :LQGV
ƒ 3UHFLSLWDWLRQ
ƒ &ORXGFRYHU
ƒ 7HPSHUDWXUHDQGKXPLGLW\

(YDOXDWHWKH(IIHFWVRI:HDWKHURQ0LOLWDU\2SHUDWLRQV

7KHHYDOXDWLRQRIZHDWKHU¶VHIIHFWVSURYLGHVWKH³VRZKDW´WRWKHZHDWKHU
DQDO\VLV)0RXWOLQHVPLOLWDU\DVSHFWVRIWKHZHDWKHUDQGFULWLFDO
ZHDWKHUYDOXHVZKLFKWKH6FDQXVHWRGHWHUPLQHZHDWKHUHIIHFWVRQWKH
EDWWOHILHOGHQYLURQPHQW


%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

6DPSOH:HDWKHU(IIHFWV7DEOH

















$QDO\]H2WKHU&KDUDFWHULVWLFVRIWKH%DWWOHILHOG

7KLVDQDO\VLVDQGHYDOXDWLRQLQFOXGHVWKRVHFKDUDFWHULVWLFVWKDWDIIHFW
IULHQGO\DQGHQHP\&2$VQRWFRYHUHGXQGHUWHUUDLQDQGZHDWKHU7KHVH
FKDUDFWHULVWLFVLQFOXGHEXWDUHQRWOLPLWHGWR
ƒ /RJLVWLFVLQIUDVWUXFWXUH ZDWHUIXHOSRZHUFRPPXQLFDWLRQV
WUDQVSRUWDWLRQLQGXVWULHVIDFLOLWLHVHWF 
ƒ 3RSXODWLRQGHPRJUDSKLFV FRQGLWLRQVFXOWXUHUHOLJLRQHGXFDWLRQ
SROLWLFDODIILOLDWLRQDQGJULHYDQFHVHWF 
ƒ (FRQRPLFV
ƒ 3ROLWLFV V\VWHPVWUHDWLHVDJUHHPHQWVOHJDOUHVWULFWLRQVHWF 

(YDOXDWHWKH(IIHFWVRI2WKHU&KDUDFWHULVWLFVRIWKH%DWWOHILHOGRQ0LOLWDU\
2SHUDWLRQV

$JDLQWKHHYDOXDWLRQRIRWKHUFKDUDFWHULVWLFVWKDWDIIHFWIULHQGO\DQGHQHP\
&2$VQRWFRYHUHGXQGHUWHUUDLQDQGZHDWKHUSURYLGHVWKH³VRZKDW´WRWKH
DQDO\VLV6RPHWLPHVWKHVHRWKHUFKDUDFWHULVWLFVSURYLGHPRUHFRQFHUQWKDQ
GRHLWKHUWHUUDLQRUZHDWKHUHVSHFLDOO\LQPLOLWDU\RSHUDWLRQVRWKHUWKDQ
ZDU

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

6WHS±(YDOXDWHWKH7KUHDW

,Q6WHSWKH6DQGKLVVWDIIDQDO\]HWKHFRPPDQG
VLQWHOOLJHQFH
KROGLQJVWRGHWHUPLQHKRZWKHWKUHDWQRUPDOO\RUJDQL]HVIRUFRPEDWDQG
FRQGXFWVRSHUDWLRQVXQGHUVLPLODUFLUFXPVWDQFHV:KHQIDFLQJDZHOO
NQRZQWKUHDWWKH6FDQUHO\RQKLVKLVWRULFDOGDWDEDVHVDQGZHOO
GHYHORSHGWKUHDWPRGHOV:KHQRSHUDWLQJDJDLQVWDQHZRUOHVVZHOO
NQRZQWKUHDWKHPD\QHHGWRGHYHORSKLVLQWHOOLJHQFHGDWDEDVHVDQGWKUHDW
PRGHOVFRQFXUUHQWO\ 6RXUFH)0 

7KH6
VHYDOXDWLRQLVSRUWUD\HGLQDWKUHDWPRGHOWKDWLQFOXGHVGRFWULQDO
WHPSODWHVZKLFKGHSLFWKRZWKHWKUHDWRSHUDWHVZKHQXQFRQVWUDLQHGE\WKH
HIIHFWVRIWKHEDWWOHILHOGHQYLURQPHQW$OWKRXJKWKH\XVXDOO\HPSKDVL]H
JUDSKLFGHSLFWLRQV GRFWULQDOWHPSODWHV WKUHDWPRGHOVVRPHWLPHV
HPSKDVL]HPDWULFHVRUVLPSOHQDUUDWLYHV

7KUHDWPRGHOVDUHFUHDWHGRUXSGDWHGDVIROORZV
ƒ &RQYHUWWKUHDWGRFWULQHSDWWHUQVRIRSHUDWLRQLQWRJUDSKLFV GRFWULQDO
WHPSODWH 
ƒ 'HVFULEHLQZRUGVWKHWKUHDW¶VWDFWLFVDQGRSWLRQV
ƒ ,GHQWLI\KLJKYDOXHWDUJHWV +97 
ƒ ,GHQWLI\WKUHDWFDSDELOLWLHV

&UHDWHRU8SGDWH7KUHDW'RFWULQDO7HPSODWHV

7KH6FUHDWHVRUXSGDWHVWKUHDWGRFWULQDOWHPSODWHVWKDWDUHWDLORUHGWRWKH
QHHGVRIWKH%17KHIROORZLQJLVDVDPSOH

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

6DPSOH'RFWULQDO7HPSODWH



'HVFULEH7KUHDW7DFWLFVDQG2SWLRQV

7KH6GHVFULEHVWKUHDWWDFWLFVDQGRSWLRQVLQZRUGVDQGJUDSKLFV

'HVFULEH7KUHDW+97V

7KH6GHVFULEHVDQGUDQNRUGHUVWKUHDW+97VE\W\SHXVLQJWKHIROORZLQJ
WKLUWHHQ  FDWHJRULHV
ƒ &RPPDQGFRQWURODQGFRPPXQLFDWLRQV & 
ƒ )LUHVXSSRUW
ƒ 0DQHXYHU
ƒ $LUGHIHQVH
ƒ (QJLQHHU
ƒ 5HFRQQDLVVDQFHVXUYHLOODQFHDQGWDUJHWDFTXLVLWLRQ 567$ 
ƒ 1%&
ƒ 5DGLRHOHFWURQLFFRPEDW 5(& RU(:
ƒ %XONIXHOV
ƒ $PPXQLWLRQVWRUDJHVLWHVDQGGLVWULEXWLRQSRLQWV
ƒ 0DLQWHQDQFHDQGUHSDLUXQLWV
ƒ /LIW
ƒ /LQHVRIFRPPXQLFDWLRQ
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  

'HVFULEH7KUHDW&DSDELOLWLHV

7KH6GHVFULEHVWKUHDWFDSDELOLWLHVLQWHUPVRISRVVLEOHEURDG&2$V
7KLVFDQEHGRQHXVLQJQDUUDWLYHGHVFULSWLRQVRUJUDSKLFV7KHIROORZLQJLV
DVDPSOH7KHEURDG&2$VDUHXVXDOO\GHVFULEHGLQWHUPVRIFRQYHQWLRQDO
RSWLRQV
ƒ $WWDFN
ƒ 'HIHQG
ƒ 5HLQIRUFH
ƒ 5HWURJUDGH

2WKHUFDSDELOLWLHVLQFOXGHVXSSRUWWRWKHEURDG&2$V
ƒ 8VHRIQXFOHDUELRORJLFDOFKHPLFDO 1%& ZHDSRQV
ƒ 8VHRIVXSSRUWLQJDLUDVVHWV
ƒ ,QWHOOLJHQFHFROOHFWLRQ
ƒ (:
ƒ (QJLQHHULQJRSHUDWLRQV
ƒ $LUDVVDXOWDLUERUQHRSHUDWLRQV
ƒ $PSKLELRXVDVVDXOWV
ƒ 5LYHULQHRSHUDWLRQV
ƒ 36<23
ƒ 'HFHSWLRQRSHUDWLRQV

6WHS±'HWHUPLQH(QHP\&2$V

6WHSLQWHJUDWHVWKHUHVXOWVRIWKHSUHYLRXVVWHSVLQWRDPHDQLQJIXO
FRQFOXVLRQ*LYHQZKDWWKHWKUHDWQRUPDOO\SUHIHUVWRGRDQGWKHHIIHFWVRI
WKHVSHFLILFHQYLURQPHQWLQZKLFKKHLVRSHUDWLQJQRZZKDWDUHKLVOLNHO\
REMHFWLYHVDQGWKH&2$VDYDLODEOHWRKLP",Q6WHSWKH6GHYHORSV
HQHP\&2$PRGHOVWKDWGHSLFWWKHWKUHDW
VDYDLODEOH&2$V+HDOVR
SUHSDUHVHYHQWWHPSODWHVDQGHYHQWPDWULFHVWKDWIRFXVLQWHOOLJHQFH
FROOHFWLRQRQLGHQWLI\LQJZKLFK&2$WKHWKUHDWZLOOH[HFXWH 6RXUFH)0
 

7KHHQHP\&2$PRGHOVGHYHORSHGLQ6WHSDUHWKHSURGXFWVWKDWWKHVWDII
ZLOOXVHWRSRUWUD\WKHWKUHDWGXULQJWKH0'03DQGWDUJHWLQJSURFHVVHV
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
7KH6FDQQRWSURGXFHWKHVHPRGHOVHIIHFWLYHO\SUHGLFWLQJWKH
(&2$VXQOHVVKHKDV
ƒ $GHTXDWHO\DQDO\]HGWKHIULHQGO\PLVVLRQWKURXJKRXWWKHWLPHGXUDWLRQ
RIWKHRSHUDWLRQ 6WHS 
ƒ ,GHQWLILHGWKHSK\VLFDOOLPLWVRIWKH$2DQG$2, 6WHS 
ƒ ,GHQWLILHGHYHU\FKDUDFWHULVWLFRIWKHEDWWOHILHOGHQYLURQPHQWWKDWPLJKW
DIIHFWWKHRSHUDWLRQ 6WHS 
ƒ ,GHQWLILHGWKHRSSRUWXQLWLHVDQGFRQVWUDLQWVWKHEDWWOHILHOGHQYLURQPHQW
RIIHUVWRWKUHDWDQGIULHQGO\IRUFHV 6WHS 
ƒ 7KRURXJKO\FRQVLGHUHGZKDWWKHWKUHDWLVFDSDEOHRIDQGZKDWKH
SUHIHUVWRGRLQOLNHVLWXDWLRQVLIXQFRQVWUDLQHGE\WKHEDWWOHILHOG
HQYLURQPHQW 6WHS 

7KH(&2$PRGHOVZKLFKGULYHWKH0'03DUHYDOLGRQO\LIWKH6
HVWDEOLVKHVDJRRGIRXQGDWLRQGXULQJWKHLQLWLDOVWHSVRIWKH,3%3URFHVV

7KH6GHYHORSV(&2$VXVLQJWKHIROORZLQJILYHVWHSV
ƒ ,GHQWLI\SUREDEOHVWUDWHJLFRSHUDWLRQDOWDFWLFDOREMHFWLYHVHQGVWDWH
ƒ ,GHQWLI\IXOOVHWRI&2$VDYDLODEOHWRWKHWKUHDW
ƒ (YDOXDWHDQGSULRULWL]HHDFK&2$
ƒ 'HYHORSHDFK(&2$DVWLPHSHUPLWV
ƒ ,GHQWLI\LQLWLDOFROOHFWLRQUHTXLUHPHQWV

(QVXUH(&2$VDQVZHUWKH³ZKDW´³ZKHUH´³ZKHQ´³KRZ´DQG³ZK\´

(DFK(&2$KDVWKUHHSDUWV
ƒ 6,77(03
ƒ &2$GHVFULSWLRQDQGRSWLRQV
ƒ +97/

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

'HYHORSPHQWRIWKH6,77(03



















6DPSOH6LWXDWLRQ7HPSODWH 6,77(03 




773Ź 7KH6FRQVLGHUVWKUHDWIRUFHV FRPPLWWHGDQG


XQFRPPLWWHG RQHOHYHOGRZQEXWWHPSODWHVIRUFHVWZR
OHYHOVEHORZ HJHQHP\SODWRRQV 


%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 ! 
7KHIROORZLQJJUDSKLFVGHSLFWDQHYHQWPDWUL[DQGKRZWREXLOGWKH
(9(17(03

6DPSOH(YHQW0DWUL[



%XLOGWKH(YHQW7HPSODWH(9(17(03 



773Ź 8VHWKH(9(17(03DQGDVVRFLDWHGHYHQWPDWUL[WRROV
ZKHQLGHQWLI\LQJLQLWLDOFROOHFWLRQUHTXLUHPHQWV7KH
(9(17(03LVDJXLGHIRUFROOHFWLRQDQG,65SODQQLQJ
7KH(9(17(03WKURXJKQDPHGDUHDVRILQWHUHVW 1$, 
DQG7$,VGHSLFWVZKHUHWRFROOHFWWKHLQIRUPDWLRQ
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
 " 

7KH$EEUHYLDWHG,3%3URFHVV

7KH,3%3URFHVVLVWLPHLQWHQVLYHHVSHFLDOO\ZKHUHDXWRPDWHGWRROVDUH
QRWDYDLODEOH2WKHUIDFWRUVPD\DOVRUHTXLUHWKHXVHRIDQDEEUHYLDWHG
SURFHVVIDFWRUVVXFKDVODFNRIWLPHLQDGHTXDWHSHUVRQQHO ERWKQXPEHUV
DQGOHYHORIWUDLQLQJ DQGHTXLSPHQWRUFRQQHFWLYLW\FRQVWUDLQWV7KH
IROORZLQJDUHHIIHFWLYHWHFKQLTXHVWRDEEUHYLDWHWKHSURFHVV 6RXUFH)0
 
ƒ :RUNDKHDG GRDVPXFKDKHDGRIWLPHDVSRVVLEOH 
• .HHSGDWDEDVHVXSGDWHG
• 8SGDWHWKUHDWPRGHOVDVLQWHOOLJHQFHGHYHORSV
• 5HJXODUO\UHYLHZEDVH,3%SURGXFWVVXFKDVGHVFULSWLRQVRI
WKHEDWWOHILHOGHQYLURQPHQWDQGWKUHDW
• %HIDPLOLDUZLWKVXSSRUWDYDLODEOHNQRZKRZWRJHWLW

773Ź 7KHSULPDU\WHFKQLTXHWRDEEUHYLDWHWKH,3%3URFHVVLVWR
GHYHORSLQGHWDLORQO\WKRVH(&2$VWKH&RPPDQGHUKDV
VSHFLILHGXVXDOO\WKHPRVWOLNHO\DQGRUPRVWGDQJHURXV
ƒ 6PDQDJHVWKHSURFHVVE\IRFXVLQJRQHVVHQWLDOV
• &RQVLGHUJHQHUDOPLVVLRQYDULDEOHVRI0(777&
• %DFNZDUGSODQWKH,3%HIIRUW
• 'HYHORSDQ,3%WLPHOLQH
• 'HFLGHRQZKLFKSURGXFWVWRGHYHORSDQGWRZKDWGHJUHHRI
GHWDLO
• 'HYHORSDOO(&2$VWRWKHVDPHOHYHORIGHWDLO
• :RUNLQSULRULW\HVWDEOLVKHGE\&RPPDQGHU¶V,QWHQWDQG
QHHGV

773Ź $WHFKQLTXHWRDEEUHYLDWHWKH,3%3URFHVVLVWRUHILQH++4
SURGXFWVWRPDNHWKHPSHUWDLQWRWKH%1¶V$2DQGPLVVLRQ
ƒ 6WD\REMHFWLYHRULHQWHG
• 2EMHFWLYHRI,3%LVWRKHOS&RPPDQGHUDQGVWDIIWRSXW
WRJHWKHUWKHEHVWSRVVLEOHSODQLQWKHWLPHDYDLODEOH

773Ź 7KH(9(17(03DQGHYHQWPDWUL[DUHHVVHQWLDOWRROVWR
VXSSRUWWKHILQLVKHGSODQZLWKLQWHOOLJHQFH(YHU\WKLQJHOVH
LVRQO\DPHDQVWRSURGXFHWKHVHSURGXFWV
ƒ 7KHPLQLPXPHVVHQWLDOV

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  
• ,QDSLQFK\RXFDQJHWE\ZLWKDJRRGVHWRI(&2$VD
JRRG(9(17(03DQGDQHYHQWPDWUL[
• 7RVDYHWLPHDQGPDWHULDOVFRPELQHDOO(&2$PRGHO
WHPSODWHVDQGWKH(9(17(03RQDVLQJOHPDSRYHUOD\
³RQHRYHUOD\SURGXFW´ RUXVHFDUWRRQVDQGVNHWFKHVDVD
PDSVXEVWLWXWH
• ,I\RXKDYHQRWGHVFULEHGWKHEDWWOHILHOGHQYLURQPHQW¶V
HIIHFWVZRUNGLUHFWO\IURPDPDSRUVNHWFKRIPDMRUWHUUDLQ
IHDWXUHV
• ,GHQWLI\WKHVHWRI(&2$VWKHQEULHIO\FRPSDUHWKHPWR
GHWHUPLQHPRVWOLNHO\DQGPRVWGDQJHURXVUDQNRUGHUWKHUHVW
LQRUGHURIOLNHO\DGRSWLRQ

773Ź 1(9(5WDNHMXVWRQH(&2$LQWRZDUJDPLQJ7KLVLVDQ
XQDFFHSWDEOHWHFKQLTXHIRUDEEUHYLDWLQJWKH,3%3URFHVV

%*$((4+$%8$;6&<$4(('%8$;'%- $8/%%'4..'%8$9 :

,65*UDSKLF

7$&623

)0

)0

,65'RFWULQH
*XLGDQFH
&RPPDQGHU¶V

,5V
&'5¶V ,QWHQW 3,5V
&'5¶V 3ULRULWLHV
'UDIW&&,5
0LVVLRQ$QDO\VLV
'HYHORS,653ODQ ,65$VVHWV$YDLODEOH
++42325'
&ROOHFWLRQVWUDWHJ\
++4$QQH[/
&ROOHFWLRQ3ODQ
3ODQQLQJ7HDP
&RPPDQGHU

%DWWOH6WDII




%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  
*HQHUDO

,65SODQQLQJLVDUJXDEO\RQHRIWKHPRVWGLIILFXOWWDVNVWKDWWKHVWDIIKDVWR
DFFRPSOLVK7KLVVHFWLRQZLOOSURYLGHVRPHJXLGDQFHDQGKHOSIXOKLQWVRQ
KRZWREXLOGDFROOHFWLRQSODQWKHFRPSRVLWLRQRIDW\SLFDO,65SODQQLQJ
WHDPDQGWKHLQGLYLGXDOWDVNVWKDWPXVWEHSHUIRUPHGIROORZLQJWKHVHYHQ
VWHSVRIWKH0'03

:KLOHWKH6DQG6OHDGWKH,65SURFHVVWKHVWDIIFRQWULEXWHVPXFKDV
WKH\GLGLQWKH,3%SURFHVV7KLVLQFOXGHVWKH67KH6QRWRQO\
EHQHILWVIURPWKHUHVXOWVRI,65SODQQLQJEXWFRQWULEXWHVWRLWVVXFFHVVE\
SURYLGLQJKLVXQLTXHSHUVSHFWLYHVLQIRUPDWLRQDQGUHTXLUHPHQWV

7KHSULPDU\GRFWULQDOUHIHUHQFHVIRUWKLVVHFWLRQRQ,65DUH
ƒ )05HFRQQDLVVDQFH6TXDGURQ
ƒ )05HFRQQDLVVDQFH7URRS
ƒ )07KH6WU\NHU%ULJDGH&RPEDW7HDP,QIDQWU\%1
ƒ )07DFWLFV
ƒ )07KH%ULJDGH&RPEDW7HDP
ƒ )0$UP\3ODQQLQJDQG2UGHUV3URGXFWLRQ
ƒ )00LVVLRQ&RPPDQG&RPPDQGDQG&RQWURORI$UP\)RUFHV
ƒ )0&DYDOU\2SHUDWLRQV
ƒ )0&ROOHFWLRQ0DQDJHPHQWDQG6\QFKURQL]DWLRQ3ODQQLQJ
ƒ )0773IRU5HFRQQDLVVDQFH6XUYHLOODQFHDQG,QWHOOLJHQFH
6XSSRUWWR&RXQWHUUHFRQQDLVVDQFH
ƒ )0,QWHOOLJHQFH3UHSDUDWLRQRIWKH%DWWOHILHOG
ƒ )0,7KH2SHUDWLRQV3URFHVV

%XLOGLQJD&ROOHFWLRQ3ODQ

'HYHORSLQJD%1&ROOHFWLRQ3ODQLVDVHTXHQWLDOSURFHVVDVIROORZV
ƒ 'HWHUPLQHLQIRUPDWLRQUHTXLUHPHQWV ,5 
ƒ 3ULRULWL]H,5VLQWR&RPPDQGHU¶VFULWLFDOLQIRUPDWLRQUHTXLUHPHQWV
&&,5 UHTXHVWVIRULQIRUPDWLRQ 5), LQWHOOLJHQFHUHTXLUHPHQWV
ƒ 6HOHFW&&,55),V,5V
ƒ 'HYHORSDFROOHFWLRQVWUDWHJ\
ƒ &RQVLGHUDYDLODEOH,65DVVHWV
ƒ )LQDOSODQLQJUHGLHQWV

:KLOHWKHUHDUHQXPHURXV%1WDVNVZKHUHVWDIIVPD\KDYHDFKRLFHDVWR
ZKHQWKH\DUHLQLWLDWHGDQGQRWZRUU\DERXWWKHVHTXHQFHLQZKLFKWKH\DUH
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
DFFRPSOLVKHGGHYHORSLQJD&ROOHFWLRQ3ODQLVQRWRQHRIWKHP
'HYHORSPHQWLV³ILUVWWKLQJVILUVW´DQGHDFKGHYHORSPHQWSLHFHEXLOGVRQ
WKHQH[W7KHIROORZLQJFKHFNOLVWLVFRPSUHKHQVLYHDQGLQFRQVRQDQFH
ZLWKGRFWULQHDOWKRXJKQRWQHFHVVDULO\DOOLQFOXVLYH,WLVLQWHQGHGWRDVVLVW
VWDIIVZLWKWKHEXLOGLQJVHTXHQFHIRUD%1&ROOHFWLRQ3ODQ%1VWDIIV
VKRXOGFRQVLGHUWKHFKHFNOLVWDVDVWDUWLQJSRLQWIRUWKHOHYHORIGHWDLOWKH
&RPPDQGHUPD\UHTXLUH

773Ź 6XUYHLOODQFHSODQVDUHGHYHORSHGE\WKH6EXWPXVWEH
DSSURYHGE\WKH6
%1&RPPDQGHU¶V+DQGERRN86$:&

&ROOHFWLRQ3ODQ'HYHORSPHQW&KHFNOLVW

ƒ 'HWHUPLQH5HTXLUHG,5V
• 3HUIRUPHGGXULQJ0LVVLRQ$QDO\VLV 0'036WHS 
• $QVZHUVWHUUDLQDQGHQHP\TXHVWLRQV
• /LVWVLQIRUPDWLRQQHHGHGWRFRPSOHWHWKHSODQ
• /LVWVLQIRUPDWLRQQHHGHGWRH[HFXWHWKHILJKWVPRRWKO\
• $GGUHVVHVVSHFLILHGWDVNVIURP++4RUGHU
• 0D\UHVXOWLQDVSHFLILF5),
• 5HFHLYHGIURPKLJKHURUVXERUGLQDWHXQLWV
• 6SHFLILHGLQIRUPDWLRQ
• %DVHGRQUHVXOWVRI0LVVLRQ$QDO\VLV 0'036WHS 
• &RQILUPVGHQLHV6,77(03
ƒ ,5FRQVLGHUDWLRQV
• +RZLPSRUWDQWDUHWKH,5V"
• :KHUHDUHZHLQWKHEDWWOH"
• +RZPXFKFROOHFWLRQWLPHGRZHKDYH"
• :KDWNLQGRIFROOHFWLRQDVVHWVGRZHKDYHDYDLODEOH"
ƒ 6HOHFW3,5
• 'HULYHGIURPRULJLQDOOLVWRI,5V
• 6XSSRUWDVLQJOHWDFWLFDOGHFLVLRQ HJILUHVPDQHXYHU 
• $VNRQO\RQHTXHVWLRQHDFK
• )RFXVHGRQVSHFLILFIDFWHYHQWRUDFWLYLW\
• /LQNHGWR1$,DQGODWHVWWLPHLQIRUPDWLRQLVRIYDOXH
/7,29 
• $GGUHVVSRVWPLVVLRQDQDO\VLVRI&RPPDQGHU¶V*XLGDQFH
• /LVWLQGHVFHQGLQJRUGHU PRVWLPSRUWDQWILUVW 
• )RFXVHGDQGVSHFLILF

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  
• 'LUHFWO\UHODWHGWRIULHQGO\GHFLVLRQVWREHH[HFXWHGGXULQJ
&2$
ƒ &RQVLGHUDWLRQVIRUDFROOHFWLRQVWUDWHJ\
• &XHLQJ
• 5HGXQGDQF\
• 0L[
• ,QWHJUDWLRQ
ƒ &RQVLGHUDVVHWVDYDLODEOH
• $YDLODELOLW\"
• &DSDELOLW\"
• 9XOQHUDELOLW\"
• 3HUIRUPDQFHKLVWRU\"
ƒ )LQDOSODQLQJUHGLHQWV
• ,65DVVHWV HJ6FRXW3ODWRRQ*URXQG6XUYHLOODQFH5DGDU
*65 LQWHOOLJHQFHDVVHWVPDQHXYHUXQLWV),67V&ROWV
UDGDUVRWKHUDVVHWV 
• &RPPDQGHU¶V,65*XLGDQFH SULRULW\IRFXVWHPSR
HQJDJHPHQWFULWHULD 
• (YHQWRUWLPHIUDPHWRDQVZHU,5"

7KHIROORZLQJGLDJUDPVSURYLGHVDPSOHVRIWKH,65FRQFHSWVNHWFKHVIRUD
%'(DQGDVXERUGLQDWH%1

7KLVSRUWLRQOHIWEODQNLQWHQWLRQDOO\

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

6DPSOH,65&RQFHSW6NHWFK %'( 

0,66,218SRQDUULYDOLQ$$'RJQG 5(&212%-(&7,9(6 7$6.25*


%&7HOHPHQWVFRQGXFWORFDOVHFXULW\ 'LVSRVLWLRQRI'=)RUFH
SDWUROVWRORFDWHDQGGHVWUR\63)WHDPV &RPELQHG$UPV5HVHUYH &$5 /=<(//2:
DQGSURYLGHIRUFHSURWHFWLRQ1(7 'LVSRVLWLRQRIHQHP\SODWRRQVLQ 7$6. 385326(
)(%QG%&7FRQGXFWV 
2%-+25175803(7%$1-2 7)%521=(
UHFRQQDLVVDQFHDQGVHFXULW\RSHUDWLRQV DQG)/87( /=*5((1 7$UHD5HFRQ
LQVHFWRUWR3/2$.WRLGHQWLI\DQG 6XSSRUWLQJ$UWLOOHU\ 3,'7*7'=)RUFH
ORFDWHHQHP\SRVLWLRQVDQGREVWDFOHV &$5&$7. 72EVHUYH1$,%
LQRQ2%--$== 3,'7*73/7V 2%-+251
%/$=(56.,1*6621,&6 3,'7*7&$5
3/%,5&+
/'
&$9 7),521
; 72EVHUYH1$,%
 3,'3232%-%/$=(56
2%-+251 3,'3/7V 2%-75803(7
$6/7361
&$7
35HILQHSUHS EUHDFK
WJWV
7)%521=( %
,, 2%-
7),521 +$53 7)67((/
2%-75803(7 72EVHUYH1$,%
2%- % 3,'3/7V 2%-%$1-2
$$'2* % .12&.287 3,'3232%-%$1-2
7),521 2%- 35HILQHSUHS EUHDFKWJWV
,, )/87(
$6/7361 72EVHUYH1$,%
7)67((/
0286( % 2%- 3,'3/7V 2%-)/87(
 2%-%$1-2 675,1* 72EVHUYH1$,%
; %
%
3,'&$5

3/25$1*( (&$9
3/2$. 3/023
3/%5220 3/6:((3 3/75(( 7$UHD5HFRQ
3/%86+
3,'7*7'=)RUFH
3,'7*73/7V 2%-+251
& )LUH6XSSRUW &66 3,'7*7&$5
3ULPDU\6&7$&6$7WR6$%(5 32)&2/7V7)6FWV '26&/,TWV ZDWHUHDFK
$OW)0 )+&7 +6&&8(QHW (&$97)6FWV Z&2/7V &$6(9$&WR/=IRU22H[WUDFWLRQ
LV,$:62, 7)6FWV Z&2/7V 2UOLQNXSZLWKSDUHQW7)
&1RGH7($05(&21

7KHEDWWDOLRQ¶V,65FRQFHSWLVWRFRQGXFWUHFRQQDLVVDQFHDQGVXUYHLOODQFH RSHUDWLRQVLQVHFWRUWR3/
%/$&.,27ORFDWHHQHP\SRVLWLRQVDQGREVWDFOHVLQ9,&RQ2%-V %2<+,7:$/.
5HFRQQDLVVDQFHREMHFWLYHVDUHWRGHWHUPLQHGLVSRVLWLRQRIHQHP\IRUFHV9,&GHVLJQDWHGREMHFWLYHVDQG
VXSSRUWWDUJHWLQJIRUDUWLOOHU\7KHEDWWDOLRQ¶V,65IRFXVLV LQRUGHU  70$ 1$,V ***
IRUFHV9,&3/52<&(7*72%-+,7  70% 1$,V **IRUFHV9,&3/52<&(7*72%-
:DON  6FRXWV 1$,V **]RQHUHFRQ7*72%-%2< 


6DPSOH,65&RQFHSW6NHWFK 7)67((/ 


7),521
,,
7)67((/
*

2%-
6&2876
%2<
,
70$
70$
2%-
$  +,7
70$ * 2%-
* %$7
,
70%
* 70%

2%-
70 :$/.
% 2%-
* %$//
&2/7  
;
6&2876 
/'
3/52//6 3/52<&( 3/%/$&.


%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  

%1,653ODQQLQJ7HDP

$W\SLFDO%1,653ODQQLQJ7HDPPLJKWFRQVLVWRIWKHIROORZLQJPHPEHUV
ƒ 6
ƒ 6
ƒ )62
ƒ 6RU6
ƒ 6
ƒ 6
ƒ 6FRXW3ODWRRQ/HDGHU
ƒ (QJLQHHU
ƒ $LU'HIHQVH2IILFHU $'2 
ƒ 2WKHUVDVUHTXLUHG

,65&2$&KHFNOLVW

$XVHIXOFKHFNOLVWWRHQVXUHWKDWDOO,65FRQVLGHUDWLRQVRIDJLYHQ&2$DUH
FRYHUHGPLJKWORRNOLNHWKLV
ƒ $OORFDWHDVVHWVWR,5V IURPPRVWWROHDVWLPSRUWDQW 
ƒ 'HWHUPLQHVHTXHQFHLQZKLFK,5VVKRXOGEHDQVZHUHG
ƒ 'HWHUPLQHVHFRQGDU\,5VWKDWZLOOQRWEHDQVZHUHG
ƒ ,ISRVVLEOHGHWHUPLQHQHFHVVDU\URXWHV,65DVVHWVZLOOWDNH
ƒ ,QWHJUDWHZDUILJKWLQJIXQFWLRQ :)) DVVHWV
ƒ 'HWHUPLQH&
ƒ 'HWHUPLQHVXVWDLQPHQW
ƒ 'HWHUPLQHILUHVXSSRUW
ƒ 7KH,65F\FOHLVFRQWLQXRXV7KHIROORZLQJJUDSKLFLVSURYLGHGDVD
JXLGHWRPDQDJHWKHF\FOHHIIHFWLYHO\


%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

7\SLFDO,65&\FOH


'HYHORS
QJ 5HTXLUHPHQWV


)0
67
67  
QL
RQ WH
ODQ

3UHSDUH
FWL GD

'H 3O D Q
3
OOH 8S

YH
‡5HPRYHUHTV"

ORS
‡1HZU HTV" ‡%XLOG,65
WH

‡5HGLUHFWDVVHWV" $UFKLWHFWXUH
GD

3O
‡6\QFKURQL]H
&R

‡0DLQWDLQ
8S

DQ
V\QFKURQL]DWLRQ

‡&RUUHODWH6,5 ‡,GHQWLI\3,5
‡3DUWLFLSDWHLQ0'03
ZLWKDVVHWV
‡$VVHVVFXUUHQW3,5
,65
,65 ‡&RQGXFW5HKHDUVDOV
‡6\QFKURQL]H
‡$UHUHTVVDWLVILHG" &<&/(
&<&/(
‡6\QFKURQL]H

$V DV N
‡%DWWOH7UDFNLQJ ‡'HWHUPLQH
$V

RQ HVW
WV
‡ 7*7'HYHORSPHQW :KR:KDW:KHQ
7
VH
VH

OOH HTX
‡(VWDEOLVK :KHUH:K\
VV

3HULVKDELOLW\ ‡6\QFKURQL]H
(Y SRU

&R RU5
FWL
‡6\QFKURQL]H
5H
DO WLQ
XD J


VN

0DQDJH
WH

7D

$VVHWV
)0
)0
)0
)0
'LVVHPLQDWH
'LVVHPLQDWH \F
&RO
ROOH
OHFWLR 0DQDJ
Q 0DQDJHHPHQWW &\FOOHH
PHQ

7KLVSRUWLRQOHIWEODQNLQWHQWLRQDOO\

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  
6DPSOH,65&\FOH

,65 $FWLRQV3ULRU 5HFRQ3XOO 5HFRQ3XVK 8SGDWH,657DVNLQJV
2SHUDWLRQV 7R0RYHPHQW 'HYHORS,QIRUPDWLRQ &RQILUP'HQ\&2$ )5$*2
RI,65$VVHWV $QVZHU$VVXPSWLRQV
Ƒ ,QLWLDOJXLGDQFH Ƒ $GGLWLRQDOJXLGDQFH Ƒ $SSURYH&&,5XSGDWHV Ƒ 5HILQHJXLGDQFHIRU
&RPPDQGHU
IRU,65RSHUDWLRQV IRU,65RSHUDWLRQV Ƒ 5HILQHJXLGDQFH )5$*2
Ƒ 3,5DSSURYDO Ƒ 5HILQHJXLGDQFH
Ƒ *HQHUDOHQHP\ Ƒ 5HILQHHQHP\ Ƒ &RQILUP'HQ\ Ƒ 5HILQHHQHP\VLWXDWLRQ
66HFWLRQ
VLWXDWLRQ VLWXDWLRQ (&2$V Ƒ 8SGDWH3,5
Ƒ ,QLWLDOFROOHFWLRQ Ƒ &RPSOHWHHQHP\ Ƒ 5HILQH&ROOHFWLRQ3ODQ Ƒ 8SGDWHFROOHFWLRQSODQ
SODQZLWK,65 6,77(03V Ƒ 8SGDWH3,5 Ƒ $VVLJQQHZ1$,V DQG
RYHUOD\ Ƒ 5HILQH(YHQW Ƒ 8SGDWH(&2$IRU UHFRQQDLVVDQFH
Ƒ ,QLWLDO3,5 0DWUL[ ZDUJDPLQJ REMHFWLYHV
Ƒ 'HVLJQDWHUHFRQ Ƒ 1RPLQDWHWDUJHWV Ƒ 4XHXHDVVHWVDV
REMHFWLYHV ZLWK)62 QHHGHGRUGLUHFWHG
Ƒ 3ODQIRUPL[LQJ Ƒ 4XHXHDVVHWVDV E\&RPPDQGHU
DQGUHGXQGDQF\ QHHGHGRUGLUHFWHG Ƒ 3RVWXSGDWHVWR
RI,65DVVHWV E\&RPPDQGHU 72&/$1
Ƒ 3RVWSURGXFWVRQ Ƒ 3RVWXSGDWHVWR Ƒ 3XEOLVK,17680
72&/$1 72&/$1 Ƒ 1RPLQDWHXSGDWH
Ƒ ,GHQWLI\LQLWLDO WDUJHWVEDVHGRQ
WDUJHWVIRU6($' XSGDWHG(&2$
Ƒ ++4PLVVLRQ Ƒ &RPPDQGHU¶V Ƒ 'HWHUPLQHDQ\ Ƒ 8SGDWHDQGRUFKDQJH
66HFWLRQ UHWDVNLQJWR
LQWHQWFRQFHSW LQWHQWIRU,65 ,650LVVLRQ
Ƒ $GMDFHQWXQLW RSHUDWLRQV VXERUGLQDWHXQLWV Ƒ 8SGDWHIULHQGO\&2$±
PLVVLRQ Ƒ ,QLWLDO&&,5 Ƒ 5HILQHVXVWDLQPHQW EDVHGRQDGMXVWHG
Ƒ 'HILQH$2 Ƒ 8SGDWHWLPHOLQH RSHUDWLRQVVXSSRUWLQJ (&2$
Ƒ ,65PLVVLRQ Ƒ 5HILQHH[HFXWH ,65 Ƒ ,VVXH)5$*2
VWDWHPHQW H[WUDFWLRQSODQ Ƒ 8SGDWH&&,5
Ƒ &RQILUPUHFRQ Ƒ 5HILQHH[HFXWH Ƒ 8SGDWHWLPHOLQH
REMHFWLYHVZLWK6 UHFRQVWLWXWLRQSODQ Ƒ 5HILQHH[HFXWHUH
Ƒ /'/&WLPH Ƒ 3RVWXSGDWHVWR FRQVWLWXWLRQSODQ
Ƒ 6XEPLW,653ODQ 72&/$1 Ƒ 3RVWXSGDWHVWR
Ƒ 7DVNRUJDQL]DWLRQ 72&/$1
Ƒ 5RXWHVWR$2
Ƒ 3RVWSURGXFWVWR
72&/$1

Ƒ ,GHQWLI\ Ƒ 5HILQHH[HFXWH Ƒ 5HILQHH[HFXWH


66HFWLRQ
VXVWDLQPHQWDVVHWV UHVXSSO\SODQ UHVXSSO\SODQ
DYDLODEOH Ƒ 5HILQHH[HFXWH Ƒ 5HILQHH[HFXWH
Ƒ 'HWHUPLQHVXSSO\ UHFRQVWLWXWLRQSODQ UHFRQVWLWXWLRQSODQ
DQGUHVXSSO\SODQ
Ƒ 'HWHUPLQH
UHFRQVWLWXWLRQSODQ

Ƒ ,GHQWLI\&, Ƒ &RQFHSWRIVLJQDO Ƒ 5HILQH6LJQDO3ODQ Ƒ 3ODQIRUVLJQDOVXSSRUW


6
SUREOHPVDQG VXSSRUWWR,65 RIQHZ,65PLVVLRQ
UHFRPPHQG RSHUDWLRQV
VROXWLRQV

)62 Ƒ ,GHQWLI\ILUH Ƒ 1RPLQDWHWDUJHWV Ƒ 5HILQHWDUJHWVEDVHG Ƒ 8SGDWHWDUJHWV


VXSSRUW ZLWK6 RQXSGDWHG(&2$ Ƒ $VVLJQQHZQRILUH
FRRUGLQDWLRQ Ƒ $VVLJQQRILUHDUHDV DUHDV
PHDVXUHV
Ƒ ,GHQWLI\LQLWLDO
WDUJHWV 6($'IRU
DLULQVHUWLRQV

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 ! 


.*43'*$.

*HQHUDO
(VWLPDWHVDUHWRROVWRVXSSRUWDQGDGYLVHWKH&RPPDQGHUWKURXJKWKH
RSHUDWLRQVSURFHVV(VWLPDWHVJHQHUDOO\SDUDOOHOWKH0'03DQGSURYLGH
ERWKLQIRUPDWLRQDQGDQDO\VLVLQDVWDIIVHFWLRQ¶V:))WZRNH\
UHVSRQVLELOLWLHVRIWKHVWDIIRIILFHU(VWLPDWHVFRQVLVWRIVLJQLILFDQWIDFWV
HYHQWVDQGFRQFOXVLRQVEDVHGRQDQDO\]HGGDWDDQGJDSVLQWKHHVWLPDWH
DUHLGHQWLILHGDV,5VWREHVXEPLWWHGWRWKHDSSURSULDWHDJHQFLHVDV5),V
7DFWLFDOHVWLPDWHVDUHJHQHUDOO\SUHVHQWHGRUDOO\VHOGRPZULWWHQDQGDUH
VXSSRUWHGE\FKDUWVDQGRWKHUGHFLVLRQVXSSRUWWRROV 6RXUFHV)0V
DQG)0, 

(VWLPDWH*UDSKLF

)0,
7$&623

)0

)0
'RFWULQH

-XGJPHQW

061DQDO\VLV ,QLWLDOHVWLPDWH
6LJQLILFDQWIDFWV 5XQQLQJHVWLPDWH
$VVXPSWLRQV 6XSSRUWLQJEULHILQJ
'HYHORS(VWLPDWH VOLGHV SURGXFWV
(YHQWV
5XQQLQJ(VWLPDWH 6LWXDWLRQDO
0(777&IDFWRUV DZDUHQHVV
,5V WRDGGUHVVJDSV 
&23
%DWWOH6WDII



(VVHQWLDO4XDOLWLHVRI(VWLPDWHV

(VWLPDWHV 6RXUFHV)0DQG)0, 
ƒ &RQVLGHUERWKTXDQWLILDEOHDQGLQWDQJLEOHDVSHFWVRIPLOLWDU\
RSHUDWLRQV
ƒ $UHDVWKRURXJKDVWLPHDQGFLUFXPVWDQFHVSHUPLW

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 " 
ƒ 3DUDOOHOWKH0'03PLVVLRQDQDO\VLVIDFWVDQGDVVXPSWLRQVDQG
WKHDQDO\VLVRIWKH0(777&PLVVLRQYDULDEOHVIXUQLVKWKHEDVLF
VWUXFWXUH
ƒ 7UDQVODWHIULHQGO\HQHP\VWUHQJWKVZHDSRQV\VWHPVWUDLQLQJ
PRUDOHDQGOHDGHUVKLSLQWRFRPEDWFDSDELOLWLHV
ƒ 5HIOHFWDFOHDUXQGHUVWDQGLQJRIWKHPLOLWDU\HIIHFWVRIZHDWKHUDQG
WHUUDLQ
ƒ 3URYLGHDWLPHO\DFFXUDWHHYDOXDWLRQRIWKHXQLWWKHHQHP\DQGWKH
$2DWDJLYHQWLPH
ƒ 5HFRPPHQGWKHEHVWXVHRIDYDLODEOHDVVHWV
ƒ )RUFXUUHQWRSHUDWLRQVRIWHQSURYLGHDEDVLVIRUHVWLPDWHVIRUIXWXUH
RSHUDWLRQVWKH\OLQNFXUUHQWRSHUDWLRQVZLWKIXWXUHSODQVDQGDQDO\]H
LPSOLFDWLRQVIRUWKHIXWXUH
ƒ 5HSUHVHQWDYLVXDOL]DWLRQRIWKHRSHUDWLRQDOHQYLURQPHQWRUFULVLV
VLWXDWLRQVWKH\FRQWULEXWHWRWKH&RPPDQGHU¶VDELOLW\WRYLVXDOL]H
HVSHFLDOO\WKHHQGVWDWHRIDQRSHUDWLRQ
ƒ 2IWHQIRUPWKHEDVHIRUDQQH[HVWRSODQVDQGRUGHUV

773Ź 7KH&23 LQFOXGLQJUXQQLQJHVWLPDWHV -8'*(0(17 
VLWXDWLRQDOXQGHUVWDQGLQJ 68 

7\SHVRI(VWLPDWHV

7\SHVRIHVWLPDWHVLQFOXGH 6RXUFHV)0DQG)0, 
ƒ 5XQQLQJHVWLPDWH V  RQHIRUHDFKVWDIIRU:))VHFWLRQHOHPHQW 
ƒ 2SHUDWLRQV(VWLPDWH
ƒ ,QWHOOLJHQFH(VWLPDWH
ƒ /RJLVWLFV(VWLPDWH
ƒ &LYLOPLOLWDU\(VWLPDWH
ƒ 6LJQDO(VWLPDWH SUHSDUHGE\WKH6 
ƒ ,2(VWLPDWH
ƒ 6SHFLDOVWDIIHOHPHQW:))HOHPHQWHVWLPDWHV
ƒ 2WKHUVWDIIHOHPHQW:))HOHPHQWHVWLPDWHVDVUHTXLUHG

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  
5XQQLQJ(VWLPDWHV

7KHUXQQLQJHVWLPDWH 6RXUFH)0VDQG)0, 
ƒ ,VDVWDIIHVWLPDWHWKDWLVFRQWLQXRXVO\XSGDWHGEDVHGRQWKHLPSDFWRI
QHZIDFWVDQGDVVXPSWLRQVDVWKHRSHUDWLRQSURFHHGV
ƒ &RQWLQXRXVO\XSGDWHVIULHQGO\IRUFHVWDWXVHQHP\DFWLYLWLHVDQG
FDSDELOLWLHVHQYLURQPHQWFRQGLWLRQVDQGFLYLOFRQVLGHUDWLRQV
ƒ ,QFOXGHVXSGDWHGFRQFOXVLRQVDQGUHFRPPHQGDWLRQV
ƒ ,VDXVHIXOWRROIRUDVVHVVLQJDVLWXDWLRQHVSHFLDOO\WKHLWHPVOLVWHG
DERYH
ƒ ,VPDLQWDLQHGE\HDFKVWDIIHOHPHQW
ƒ ,VSURYLGHGDVUHTXLUHGE\WKH&RPPDQGHURUWKHVLWXDWLRQ

773Ź 7KHHQWLUHVWDIIFRQWLQXRXVO\UHYLHZVDQGXSGDWHVWKHLU
UHVSHFWLYH5811,1*(67,0$7(6WKURXJKRXWWKH0'03

6LJQDO5XQQLQJ(VWLPDWH

7KH6LJQDO5XQQLQJ(VWLPDWH
ƒ ,VDQDQDO\VLVRIFRPPXQLFDWLRQVDQGDXWRPDWLRQIDFWRUVDIIHFWLQJ
PLVVLRQDFFRPSOLVKPHQW
ƒ )RFXVHVRQNH\FRPPDQGFRQWUROFRPPXQLFDWLRQVFRPSXWHUVDQG
LQWHOOLJHQFH &, FRQFHUQVDQGRSHUDWLRQDOHTXLSPHQWVWDWXV $%&6
UDGLRVHWF 
ƒ )RUPVWKHEDVLVIRUVLJQDOVXSSRUWSODQV
ƒ ,VFRQWLQXRXVO\XSGDWHGDVWKHVLWXDWLRQFKDQJHV WKXV³UXQQLQJ´
HVWLPDWH 
ƒ ,VGHYHORSHGDQGPDLQWDLQHGE\WKH6
ƒ ,VVHOGRPZULWWHQDWWKH%1OHYHO

7KH6LJQDO5XQQLQJ(VWLPDWHVKRXOGDQVZHUWKHVHTXHVWLRQV
ƒ &XUUHQWSURMHFWHGVWDWXVRIVLJQDOSHUVRQQHODQGHTXLSPHQW"
ƒ +2:08&+RI:+$7LVQHHGHGWRVXSSRUWWKHRSHUDWLRQ"
ƒ +RZZLOOLWJHWWRWKHULJKWORFDWLRQ"
ƒ :KDWH[WHUQDOVXSSRUWLVQHHGHG"

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  
ƒ :KLFK&2$VFDQEHVXSSRUWHG"

7KH6LJQDO5XQQLQJ(VWLPDWHDQGJHQHUDO0(777&PLVVLRQYDULDEOHV
DQDO\VLV
ƒ 0LVVLRQ 0 FRQVLGHUDWLRQVLQFOXGH
• 7)PLVVLRQDQG&RPPDQGHU¶V,QWHQW
• &RQFHSWRIRSHUDWLRQV
• ++4PLVVLRQDQGFRQFHSWRIRSHUDWLRQV
• ++4FRQFHSWRIVXSSRUW
• 7\SHDQGGXUDWLRQRIRSHUDWLRQ
ƒ (QHP\ ( FRQVLGHUDWLRQVLQFOXGH
• (QHP\FDSDELOLWLHVDQGWDFWLFVWKDWFRXOGWKUHDWHQ
VXVWDLQPHQW
• (QHP\DYHQXHVRIDSSURDFK
• (QHP\XQFRQYHQWLRQDOWDFWLFVWKDWFRXOGWKUHDWHQVXVWDLQPHQW
ƒ 7URRSVDQGDYDLODEOHVXSSRUW 7 FRQVLGHUDWLRQVLQFOXGH
• 7)WDVNRUJDQL]DWLRQWRLQFOXGHVXSSRUWLQJVLJQDOXQLWV
• /RFDWLRQDQGFRQGLWLRQRIDOOXQLWVHVSHFLDOO\VLJQDO
• &XUUHQWDQGSURMHFWHGVWDWXVRISHUVRQQHODQGHTXLSPHQW
• $YDLODELOLW\DQGVWDWXVRIVHUYLFHV
• 8QLWOHYHO&,FDSDELOLWLHV
ƒ 7HUUDLQDQGZHDWKHU 7 FRQVLGHUDWLRQVLQFOXGH
• (IIHFWVRIZHDWKHUDQGWHUUDLQRQVXVWDLQPHQWRSHUDWLRQV
• $GGLWLRQDOVXVWDLQPHQWUHTXLUHPHQWVGXHWRZHDWKHURU
WHUUDLQ
• &RQGLWLRQRILQIUDVWUXFWXUH HJURDGVEULGJHV 
• .H\WHUUDLQ
ƒ 7LPHDYDLODEOH 7 FRQVLGHUDWLRQVLQFOXGH
• ,PSDFWRQDELOLW\WRHPSODFHHTXLSPHQW
• 3ODQQLQJDQGSUHSDUDWLRQWLPHIRUVLJQDOXQLWV
• ,PSDFWRIWLPHRQVXSSRUWUHTXLUHPHQWV
ƒ &LYLO & FRQVLGHUDWLRQVLQFOXGH
• +RVW1DWLRQVXSSRUWDQGFRQWUDFWVHUYLFHV
• ,PSDFWRIFLYLOLDQDQGUHIXJHHPRYHPHQW
• 3RWHQWLDOIRUKRVWLOHFLYLOLDQUHDFWLRQDJDLQVW&QRGHV
• 86 FLYLOLDQ FRQWUDFWRUVRQWKHEDWWOHILHOG

6LGHQWLILHVDQGVWULYHVWRFRUUHFWSRWHQWLDOVKRUWIDOOV
ƒ 7KH6ZHLJKVWKHDYDLODEOHFDSDELOLWLHVDJDLQVWUHTXLUHPHQWVWR
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
LGHQWLI\SRWHQWLDOVKRUWIDOOV±
• ([LVWLQJHTXLSPHQWDQGSHUVRQQHO
• $QWLFLSDWHGDXJPHQWDWLRQ
• $VVHVVHVVWDWXVRIVLJQDOIXQFWLRQVDQGQHWZRUNV
ƒ 7KH6UHFRPPHQGVDFWLRQVWRHOLPLQDWHRUUHGXFHWKHHIIHFWVRI
SRWHQWLDOVKRUWIDOOV±
• 8QGHUVWDQGWKHSRWHQWLDOLPSDFWRQWKHIRUFH
• 8QGHUVWDQGULVNWKHVKRUWIDOOSUHVHQWVWRPLVVLRQ
DFFRPSOLVKPHQW
• 8QGHUVWDQGWKHGXUDWLRQRIWKHVKRUWIDOO
• 8QGHUVWDQGWKHUHTXLUHPHQWVWKDWH[FHHGFDSDELOLWLHV
• 'HWHUPLQHFDXVHRIWKHVKRUWIDOO HJEDWWOHORVVQRQ
DYDLODELOLW\ 
• 6KLIWHTXLSPHQWRUDVVHWVE\SKDVHRIWKHRSHUDWLRQ
• 5HTXHVWDGGLWLRQDODVVHWVIURP++4
• &RQVLGHUDWWDFKLQJDGGLWLRQDOVLJQDOVXSSRUWFDSDELOLW\WR
VXERUGLQDWHV
• 0RGLI\WKH&2$RUSODQ
ƒ 6GHYHORSVVXSSRUWSODQVEDVHGRQWKH6LJQDO(VWLPDWHWREHFRPH
LQSXWWRWKH%16XSSRUW3ODQ

6DPSOH)RUPDWRI*HQHULF5XQQLQJ(VWLPDWH

7KHJHQHULFUXQQLQJHVWLPDWHLVJRYHUQHGE\7$&623 6RXUFHV)0V
DQG)0, 

ƒ 0,66,21 UHVWDWHGPLVVLRQIURP0LVVLRQ$QDO\VLV 
ƒ 6,78$7,21$1'&216,'(5$7,216
• &KDUDFWHULVWLFVRIWKH$2 LQWHUPVRIWKHHIIHFWRQWKH
VHFWLRQ¶V:)) 
• :HDWKHU
• 7HUUDLQ
• &LYLOFRQVLGHUDWLRQV SROLWLFDOHFRQRPLFVRFLRORJLFDOSV\FKRORJLFDO
LQIUDVWUXFWXUH 
• 2WKHUSHUWLQHQWIDFWV
• (QHP\)RUFHV LQWHUPVRIWKHHIIHFWRQWKHVHFWLRQ¶V:)) 
• 'LVSRVLWLRQ
• &RPSRVLWLRQ
• 6WUHQJWK
• &DSDELOLWLHV
• &2$V
• )ULHQGO\)RUFHV LQWHUPVRIWKHHIIHFWRQWKHVHFWLRQ¶V:)) 
• &XUUHQWVWDWXVRIVHFWLRQ¶VDVVHWV
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
• &XUUHQWVWDWXVRIRWKHUUHVRXUFHV

ƒ &2856(62)$&7,21 &2$ 
• /LVWIULHQGO\&2$VWKDWZHUHZDUJDPHG
• /LVWHYDOXDWLRQFULWHULDGHYHORSHGGXULQJ&2$$QDO\VLV
ƒ $1$/<6,6 RIHDFK&2$ZDUJDPHGXVLQJDERYHFULWHULD 
ƒ &203$5,621 UDQNRUGHUHGOLVWRI&2$VIRUHDFKNH\
FRQVLGHUDWLRQ 
ƒ 5(&200(1'$7,216$1'&21&/86,216
• 5HFRPPHQGPRVWVXSSRUWDEOH&2$ IURP:))SHUVSHFWLYH 
• /LVWLVVXHVZLWKUHFRPPHQGDWLRQVWRUHGXFHLPSDFW
• /LVWGHILFLHQFLHVZLWKUHFRPPHQGDWLRQVWRUHGXFHLPSDFW
• /LVWULVNVZLWKUHFRPPHQGDWLRQVWRUHGXFHLPSDFW

6DPSOH6LJQDO(VWLPDWH ³$:D\´ 

3UHSDUHG%\ <RX
 
6WDII6HFWLRQ 6 '7*


)DFWV

$VVXPSWLRQV


‡ /LPLWHG6&7$&6$7$VVHWV ‡ )0UDQJHZLWK2(DQG3$ZLOOEHNP
2QH1HWIRU%&7

7DVNV

6 , (


   
‡ 'HYHORS(QFODYHVXSSRUW&RPPXQLFDWLRQV$UFKLWHFWXUH ;;
‡ (VWDEOLVK5HWUDQV 6WDWLRQIRUIROORZRQ236 ;
‡ 3ODQFRPPXQLFDWLRQVIRUIROORZRQRSHUDWLRQV ; ;
‡ (VWDEOLVK*%6)HHGLQ72&7$&$/2& ;

,VVXHV2XWVWDQGLQJ.H\5),V

/LPLWDWLRQV
 $VVHWV$YDLODEOH

6XEPLW7KUX'HSXW\%7/&37

‡ /26FRPPV LQ8UEDQ

6ODQW5HSRUWIRU.H\ ‡ 5HTXLUHPHQWVIRU',9QHWV
 

(QYLURQPHQW &6\VWHPV ‡ :LGHEDQG7$&6$7VHJPHQWIRU


‡ /LPLWHG6&7$&6$7 &ELUGPLVVLRQDSSURYDO
$VVHWV




%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

#('%.'%-&-$&.

*HQHUDO

3ODQVDQGRUGHUVFRQYH\WKH&RPPDQGHU¶VYLVXDOL]DWLRQLQWHQWDQG
GHFLVLRQVWRWKHVWDIIDQGWRVXERUGLQDWHVXSSRUWLQJDQGVXSSRUWHGXQLWV
DQGVHUYHWRLQIRUPDGMDFHQWXQLWV3ODQVDQGRUGHUVIRFXVRQWKHUHVXOWVWKH
&RPPDQGHUH[SHFWVWRDFKLHYHE\SURYLGLQJWKH³ZKDW´DQG³ZK\´EXW
DOORZLQJVXERUGLQDWHVWKHWDFWLFDOIUHHGRPWRDFFRPSOLVKDPLVVLRQ
³KRZ´  6RXUFH)0$SSHQGL[* 

3ODQV2UGHUV*UDSKLF

7$&623

)0,

)0

)0
'RFWULQH

5XQQLQJ(VWLPDWH
2UGHUV
6LJQLILFDQWIDFWV
$VVXPSWLRQV 3ODQV
,3% $WWDFKPHQWV
'HYHORS3ODQVRU2UGHUV
0(777&IDFWRUV
2YHUOD\V
&23
'HFLVLRQ6370DWUL[
$SSURYHG&2$
'67
&RPPDQGHU
%DWWOH6WDII

6\QFK0DWUL[

([HFXWLRQ0DWUL[




7KHDPRXQWRIGHWDLOSURYLGHGGHSHQGVRQVHYHUDOIDFWRUV
ƒ ([SHULHQFHDQGFRPSHWHQFHRIVXERUGLQDWHFRPPDQGHUV
ƒ &RKHVLRQDQGWDFWLFDOH[SHULHQFHRIVXERUGLQDWHXQLWV
ƒ &RPSOH[LW\RIWKHRSHUDWLRQ
ƒ 7LPHDYDLODEOHWRSUHSDUH

773Ź %HUXWKOHVVRQWKH±5XOHRIDOORFDWLQJSODQQLQJWLPH
%1&RPPDQGHU¶V+DQGERRN86$:&


%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  
&KDUDFWHULVWLFVRI3ODQVDQG2UGHUV

6RXUFH)0$SSHQGL[*
ƒ &RQWDLQFULWLFDOIDFWVDQGDVVXPSWLRQV DVVXPSWLRQVLQ23/$1VRQO\ 
ƒ $XWKRULWDWLYHH[SUHVVLRQ UHIOHFW&RPPDQGHU¶V,QWHQWDQGZLOO 
ƒ 3RVLWLYHH[SUHVVLRQ VWDWHGLQWKHDIILUPDWLYH 
ƒ $YRLGTXDOLILHGGLUHFWLYHV QRPHDQLQJOHVVRUXQQHFHVVDU\ZRUGV 
ƒ %DODQFH RIFHQWUDOL]HGYHUVXVGHFHQWUDOL]HGFRQWURO 
ƒ 6LPSOLFLW\ NHHSLWVLPSOH6ROGLHU .,66 
ƒ %UHYLW\ LQFOXGHRQO\QHFHVVDU\GHWDLOVQRWGHWDLOVLQWKH623 
ƒ &ODULW\ HDV\WRUHDGDQGXQGHUVWDQGXVHFOHDUDEEUHYLDWLRQV
DFURQ\PV 
ƒ &RPSOHWHQHVV DOOGHWDLOUHTXLUHGIRUH[HFXWLRQDQGFRQWURO 
ƒ &RRUGLQDWLRQ ILWWRJHWKHU:))DUHDVDQGDOORZVGLUHFWFRQWDFW 
ƒ )OH[LELOLW\ OHDYHURRPIRUDGMXVWPHQW0XUSK\OLYHV 
ƒ 7LPHOLQHVV DOORZVVXERUGLQDWHVWLPHWRSODQ 

773Ź $*22'SODQRURUGHUQRZLVEHWWHUWKDQD3(5)(&7RQH
GHOLYHUHGWRRODWH

7\SHVRI3ODQV

$SODQLVDGHVLJQIRUDIXWXUHRUDQWLFLSDWHGRSHUDWLRQ0DMRUW\SHVRI
SODQVLQFOXGH 6RXUFH)0$SSHQGL[* 
ƒ 23/$1
• 3ODQIRUSUHSDUDWLRQH[HFXWLRQDVVHVVPHQWRIPLOLWDU\
RSHUDWLRQV
• %HFRPHVDQ2325'ZKHQ&RPPDQGHUVHWVDQH[HFXWLRQ
WLPH
ƒ 6HUYLFH6XSSRUW3ODQ
• 3URYLGHVLQIRUPDWLRQLQVWUXFWLRQVFRYHULQJVHUYLFHVXSSRUW
• %HFRPHVDVHUYLFHVXSSRUWRUGHUZKHQ&RPPDQGHUVHWVDQ
H[HFXWLRQWLPHIRUWKHRUGHULWVXSSRUWV
ƒ 6XSSRUWLQJ3ODQ
• 23/$1SUHSDUHGE\VXSSRUWLQJRUVXERUGLQDWHFRPPDQGHU
ƒ &RQWLQJHQF\3ODQ
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
• )RUPDMRUFRQWLQJHQFLHVWKDWFDQUHDVRQDEO\EHDQWLFLSDWHG
ƒ %UDQFK
• 3ODQRU&2$IRUFKDQJLQJPLVVLRQGLVSRVLWLRQRULHQWDWLRQ
RUGLUHFWLRQRIPRYHPHQW
ƒ 6HTXHO
• )RUIXWXUHRSHUDWLRQVWKDWIROORZFXUUHQWRSHUDWLRQ
• $QWLFLSDWHSRVVLEOHRXWFRPHV VXFFHVVIDLOXUHVWDOHPDWH 

7\SHVRI2UGHUV

$QRUGHULVDZULWWHQRUDORUVLJQDOFRPPXQLFDWLRQZKLFKFRQYH\V
LQVWUXFWLRQVIURPDVXSHULRUWRDVXERUGLQDWH)LYHEDVLFW\SHVRIFRPEDW
RUGHUVLQFOXGH VRXUFH)0$SSHQGL[* 

ƒ 2325'
• /LVWHYDOXDWLRQFULWHULDGHYHORSHGGXULQJ&2$$QDO\VLV
• 'LUHFWLYHHIIHFWLQJFRRUGLQDWHGH[HFXWLRQRIDQRSHUDWLRQ
• $OVRFDOOHGDSDUDJUDSKILHOGRUGHUZKLFKLQFOXGHV DV
PLQLPXP 
• 7DVNRUJDQL]DWLRQ
• 6LWXDWLRQ
• 0LVVLRQ
• ([HFXWLRQ
• $GPLQLVWUDWLYHDQGORJLVWLFVXSSRUW VHUYLFHVXSSRUW 
• &RPPDQGDQGVLJQDOIRUWKHVSHFLILHGRSHUDWLRQ
• $OZD\VVSHFLI\H[HFXWLRQGDWHDQGWLPH
ƒ 6HUYLFH6XSSRUW2UGHU
• 'LUHFWVVHUYLFHVXSSRUWRIRSHUDWLRQVLQFOXGLQJDGPLQ
PRYHPHQWV
ƒ 0RYHPHQW2UGHU
• &RYHUVGHWDLOVRIDFRPPDQG¶VPRYHXVXDOO\DGPLQLVWUDWLYH
ƒ :DUQLQJ2UGHU :$512 
• 3UHOLPLQDU\QRWLFHRIDQRUGHURUDFWLRQ
• 'HWDLOVGHSHQGRQLQIRUPDWLRQDQGWLPHDYDLODEOH
ƒ )UDJPHQWDU\2UGHU )5$*2 
• $EEUHYLDWHGIRUPRIYHUEDOZULWWHQRUGLJLWDORUGHU
• 6DPHSDUDJUDSKIRUPDWDV2325'
• $GGUHVVFKDQJHVWREDVH2325'RULQGLFDWH³QRFKDQJH´


%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  
6RXUFHVRI,QIRUPDWLRQLQDQ2UGHU

,1)250$7,21)25 6285&(
 
7DVN2UJDQL]DWLRQ 7DVN2UJDQL]DWLRQIURP++42UGHU
 <RXU&RPPDQGHU¶VFRQFHSW
 
3$5$D 6LWXDWLRQ²(QHP\ 3$5$DRI++42UGHU
)RUFHV 
 &XUUHQW,QWHOOLJHQFH6XPPDU\
,17680 
 ,QWHOOLJHQFH$QQH[RI++42UGHU
 <RXU6
 
3$5$E 6LWXDWLRQ² 
)ULHQGO\)RUFHV 
0LVVLRQRI++4 3$5$RI++42UGHU
 
0LVVLRQRIXQLWVWROHIWRU 3$5$ERI++42UGHU
ULJKW
 3$5$DRI++42UGHU
 
0LVVLRQRIXQLWVWRIURQW 3$5$ERI++42UGHU
RUUHDU
 3$5$DRI++42UGHU
 6XEXQLWSDUDJUDSKVRI++42UGHU
 
0LVVLRQVRIVXSSRUWLQJ 3$5$ERI++42UGHU
HOHPHQWV
 6XEXQLWSDUDJUDSKVRI++42UGHU
 7DVN2UJDQL]DWLRQRI++42UGHU
 
3$5$F 6LWXDWLRQ² 3$5$FRI++42UGHU
(QYLURQPHQW 
 &XUUHQW,QWHOOLJHQFH6XPPDU\
,17680 
 ,QWHOOLJHQFH$QQH[RI++42UGHU
 (QJLQHHU$QQH[RI++42UGHU
 <RXU6
 <RXU(QJLQHHU
 
3$5$G $WWDFKPHQWV 7DVN2UJDQL]DWLRQRI++42UGHU
'HWDFKPHQWV 
 3$5$GRI++42UGHU
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
 ! 
 &RRUGLQDWLQJ,QVWUXFWLRQVRI++4
2UGHU
 
3$5$ 0LVVLRQ  3$5$RI++42UGHU
 3$5$RI++42UGHU
 6XEXQLWSDUDJUDSKVRI++42UGHU
 <RXU&RPPDQGHU¶V3ODQQLQJ*XLGDQFH
 
3$5$ ([HFXWLRQ 3$5$DRI++42UGHU
&RQFHSWRI2SHUDWLRQV 
 <RXU&RPPDQGHU
 <RXU&RPPDQGHU¶VFRQFHSW
 <RXU&RPPDQGHU¶VGHFLVLRQ
 
8QLWVXESDUDJUDSKVRI <RXU&RPPDQGHU¶VFRQFHSW
3$5$
 
6XESDUDJUDSK &RRUGLQDWLQJ &RRUGLQDWLQJ,QVWUXFWLRQVRI++42UGHU
,QVWUXFWLRQV 
 <RXU&RPPDQGHU¶VFRQFHSW
 <RXU6)62DQGRWKHUV
 
3$5$ 6HUYLFH6XSSRUW  3$5$RI++42UGHU
 <RXU&RPPDQGHU¶VRUGHU
 <RXU6DQG6
 %16XVWDLQPHQW6XSSRUW3ODQ
 
3$5$ &RPPDQGDQG 3$5$RI++42UGHU
6LJQDO 
 <RXU&RPPDQGHU¶V&RQFHSW
 <RXU&(2IILFHU 6 

7HFKQLTXHVIRU,VVXLQJ2UGHUV

6RXUFH)0$SSHQGL[*
ƒ :ULWWHQRUGHUV WH[WDQGJUDSKLFVSDUDJUDSKIRUPDWLVVWDQGDUGIRU
FRPEDWRUGHUVSOXVJUDSKLFRYHUOD\V 
ƒ 9HUEDORUGHUV XVXDOO\LQDWLPHFRQVWUDLQHGHQYLURQPHQW 
ƒ (OHFWURQLFRUGHUV XVLQJPDWULFHVDQGRYHUOD\V 
ƒ 2YHUOD\RUGHUV WHFKQLTXHWRLVVXHRUGHUXVXDOO\D)5$*2FRPELQHV
DEEUHYLDWHGLQVWUXFWLRQVLQDSDUDJUDSKIRUPDWRQDQRYHUOD\ 

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 " 
ƒ *UDSKLFVFRQYH\LQIRUPDWLRQLQVWUXFWLRQVWKURXJKPLOLWDU\
V\PEROV
ƒ 2YHUOD\VSRUWUD\ORFDWLRQVL]HDFWLYLW\RIGHSLFWHGXQLWV

$GPLQLVWUDWLYH,QVWUXFWLRQV

6RXUFH)0$SSHQGL[*'HWDLOHGLQVWUXFWLRQVDUHH[SODLQHGLQGHWDLO
LQ)0$SSHQGL[*)0DGGUHVVHVDEEUHYLDWLRQV%DVLF
DGPLQLVWUDWLYHLQVWUXFWLRQVLQFOXGH
ƒ $OOSDUDJUDSKKHDGLQJVZLWKZLWKRXWHQWULHVVKRZQIRUZULWWHQ
RUGHUV
ƒ $EEUHYLDWLRQVVDYHWLPHDQGVSDFHEXWPXVWEHFOHDUDQGFRQVLVWHQW
ƒ 3ODFHDQGGLUHFWLRQVGHVLJQDWLRQV
ƒ 1DPLQJFRQYHQWLRQVDUHVLPSOHDQGGRQRWUHYHDOLGHQWLWLHVLQ
DFFRUGDQFHZLWK ,$: 623
ƒ &ODVVLILFDWLRQPDUNLQJV WRSERWWRPRIHDFKSDJHDQGSDUDJUDSKV 
ƒ 8QQDPHGGDWHVDQGWLPHV PRVWFRPPRQFRQYHQWLRQVOLVWHG 
• &GD\ XQQDPHGGD\GHSOR\PHQWFRPPHQFHV 
• 'GD\ XQQDPHGGD\RSHUDWLRQFRPPHQFHV 
• 0GD\ XQQDPHGGD\IXOOPRELOL]DWLRQFRPPHQFHV 
• 1GD\ XQQDPHGGD\$'XQLWQRWLILHGIRUUHGHSOR\PHQW 
• 5GD\ XQQDPHGGD\UHGHSOR\PHQWFRPPHQFHV 
• +KRXU VSHFLILFKRXURQ'GD\ZKHQRSHUDWLRQFRPPHQFHV 
• /KRXU VSHFLILFKRXURQ&GD\ZKHQGHSOR\PHQW
FRPPHQFHV 
• &'DQG0GD\VHQGDWKRXUV8QLYHUVDO =8/8 
7LPH
• 'D\VKRXUVSULRUDUHLQGLFDWHGZLWKDGDVK HJ& 
• 'D\VKRXUVDIWHUDUHLQGLFDWHGZLWKDSOXV HJ& 
• 2SHUDWLRQDOFRGHZRUGSUHFHGHVWLPH>HJ³%$/'($*/(
'GD\ ´@
ƒ 7LPH GLJLWGDWHWLPHJURXS '7* LQFOXGHVGDWHKRXUVPLQXWHV
''++00 H[SUHVVHGLQKRXUFORFNV\VWHPSOXV7LPH=RQH 
ƒ 'DWHV GD\PRQWK\HDU ZLWKGDVKWRVHSDUDWHLQFOXVLYHGDWHV
ƒ ,GHQWLI\SDJHVZLWKVKRUWWLWOHKHDGLQJWRLQFOXGHSODQGHVLJQDWLRQDQG
LVVXLQJ+4
ƒ 1XPEHUSDJHVRIEDVHRUGHUDQGDWWDFKPHQWVVHSDUDWHO\

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  
• 8VH$UDELFQXPEHUVSUHFHGHGE\DOSKDQXPHULF
GHVLJQDWLRQIRUDWWDFKPHQWVVHSDUDWHGE\K\SKHQV
• $VVLJQ LQRUGHU FDSLWDOOHWWHUVWRDQQH[HV5RPDQQXPHUDO
WRDSSHQGLFHVFDSLWDOOHWWHUVWRWDEVDQG$UDELFQXPHUDOVWR
HQFORVXUHV

$WWDFKPHQWV

$WWDFKPHQWVWRRUGHUVUHSUHVHQWDQLQIRUPDWLRQPDQDJHPHQWWRROWKH\
LQFOXGHGHWDLOVQRWLQFRUSRUDWHGLQWKHEDVHRUGHU7KH\PD\XVHDQ\
FRPELQDWLRQRIWH[WPDWUL[WUDFHRYHUOD\PDSVNHWFKSODQJUDSKRU
WDEOHWRFRQYH\LQIRUPDWLRQ$WWDFKPHQWVNHHSWKHEDVHRUGHUFOHDUDQG
XVHIXO7KH\DUHOLVWHGDWWKHHQGRIWKHGRFXPHQWWKH\H[SDQGDQGVSHFLI\
ZKHQDUHTXLUHGDWWDFKPHQWLVRPLWWHG7KHKLHUDUFK\RIDWWDFKPHQWV
LQFOXGHV LQRUGHU DQQH[HVDSSHQGLFHVWDEVDQGHQFORVXUHV$YRLGJRLQJ
ORZHU6RXUFH)0$SSHQGL[*

2UGHUV$QQH[HV

)ROORZLQJLVDOLVWRIRUGHUVDQQH[HV$FRPSOHWHOLVWLQJWRLQFOXGH
DQQH[HVDSSHQGLFHVDQGWDEVFDQEHIRXQGLQ$SSHQGL[*WR)0
8QLWVPD\GLFWDWHZKLFKDQQH[HVDQGDSSHQGLFHVWKH\ZDQWWRDFFRPSDQ\
WKHLUEDVHRUGHUDQGWKHOHQJWKRIWKHVHFRPSRQHQWV6RXUFH)0

$QQH[$ 7DVN2UJDQL]DWLRQ 
$QQH[% ,QWHOOLJHQFH 
$QQH[& 2SHUDWLRQ2YHUOD\ 
$QQH[' )LUH6XSSRUW 
$QQH[( 5XOHVRI(QJDJHPHQW 
$QQH[) (QJLQHHU 
$QQH[* $LUDQG0LVVLOH'HIHQVH 
$QQH[+ &2SHUDWLRQV 
$QQH[, 6HUYLFH6XSSRUW 
$QQH[- 1%&2SHUDWLRQV 
$QQH[. 3URYRVW0DUVKDO 
$QQH[/ ,652SHUDWLRQV 
$QQH[0 6XVWDLQPHQWDUHDDQG%DVH6HFXULW\ 
$QQH[1 6SDFH 
$QQH[2 $UP\$LUVSDFH&RPPDQGDQG&RQWURO 
$QQH[3 ,QIRUPDWLRQ2SHUDWLRQV 
$QQH[4 &LYLO0LOLWDU\2SHUDWLRQV 
$QQH[5 3XEOLF$IIDLUV 

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

773Ź $VDJHQHUDOUXOH$QQH[HV$%&')DQG,DFFRPSDQ\
WKHEDVHRUGHU

6DPSOH$QQH[+ &2SHUDWLRQV 

>&ODVVLILFDWLRQ@

,QFOXGHKHDGLQJLIDQQH [GLVWULEXWHGVHSDUDWHO\IURPEDVH23 /$12325'
$11(;+ &200 $1'&21752/&200 81,&$7,21DQG&20387(523(5$7,216 
7223(5$7,2125'(512>FRGHQDPH@²>L VVXL QJKH DG TXDU WH UV@

6 ,78$7,21
D(QHP\IRUFHV5H IHUWRDQQH[%DSSHQGL[,QWHOOLJH QFHHVWLPDWH$OVRSURYLGH 
HQH P\FDSD ELOLW \DQGDFWLYLW\E\GHVFULELQJHQHP\FDSDELOLWLHVWKDWPD\D IIHFW
FRPPXQLFDWLRQVV\VWHPV
E )ULHQ GO\IRUFHV
‡3ULPDU\FRPPXQLFDWLRQVJDW HZD \VSURYLGLQJFRQQHFWLYLW \WRKLJKHUORZH UDQGD GMDFHQW
XQLWV
‡&ULWLF DOFRPPXQLFD WLRQVVHFXULW\PHDVXUHVUHTXLUH GWRFRXQWH UH[SHFWHGHQHP\(:
FDSDELOLWLHVDQGSURWH FW&V\VWHPV
‡([WHUQDOFRPPXQLFDW LRQVDVVHWVWKDWDXJPHQWVLJQDOVXSSRUWXQLWF DSDELOLWLHV
F(QYLURQPHQW,QVHSDUDWHVXESD UDJUD SKVOLVWDOOFULWLFDOWHUUDLQZHDW KHUDQGFLYLO
FRQVLGHUDWLRQVWKDWZRXOGLPSDF W&RSHUDWLRQV5HIH UWRDSSURSULDWH D QQH[HVDV
UH TXLUHG
G $WWDFKPHQWVDQGGH WDFKPH QWV
0,66 ,216WDWHWKH&RSHUDWLRQVPLVVLRQLQVXSSRUWRIWKL VRSHUD WLRQ
(;(&87,21
D6FKHPHRIVLJQDO VXSS RUWRSHUDWLRQV
  'HVFULEHWKHFRQFHSWRIVLJQDORSH UDWL RQVLQF OXGLQJSULPDU\DQGEDFNXS
V\VWHPVVXSSRUWLQJFULWLFDO&QHWZRUNV
  2XWOLQH W KHSOD QIRUH[WHQGLQJ&V\VWHPVE\HDFKSKDVHRIWKHRSHUDWLRQ
  /LVWFULWLFDOOLQNVEHWZHHQWDFWLFDOD QGVWUD WHJLFFRPPXQLFDWLRQVV\VWHPV
  ,GHQWLI\FULWLFDOOLPLWDW LRQVRIRUJDQLFVLJQDOVXSSRUWDVVHWV'HILQH O LPLWD WLRQVRIDVVHW V
IURPKLJKHUKHDGTXDUWH UV
  6WDWHVLJQD OVXSSRUWWDVNVWKDWDOOQRQVLJQDOXQLWVPXVWSHUIRUPWRDFF RPSOLVKPLVVLRQV
D QGWDVNVEH \RQGQRUPDOUH TXLUHPHQWV
  6WDWHVLJQD OVXSSRUWSULRULWLHV
E 7DVNVWRVXERU GLQDWH X QLWV
‡6LJQD OVXSSRUWWDVNVW KDWPDQHXYHUHOHPHQWVPXVWDF FRPSOLVKWKD WW KHEDVH 
23/$12325'GRHVQRWFRQWDLQ
‡6LJQD OVXSSRUWWDVNVW KDWVLJQDOXQLW VVXSSRUWLQJPDQHXYH UHOH PH QWVDUHWRDFF RPSOLVK
RQO\DVQHFHVVDU\WRHQVXUHXQLW \RIHIIRUW
F&RRUGL QDWLQJLQVWUXFWLRQV
‡&ULWLF DOVLJQDOVXSSRUWLQVWUXFWLRQVQRW DOUHDG\FRYHUHGL QWKHEDVH23/$12325'
‡.H\WLPHVRUH YHQWVFULWLFDO WR,1)26<6DQGQHWZRUNF RQWUROSURFHGXUHV
‡$UP\%DWWOH &RPPDQG6 \VWHPFRQWUROSURFHGXUH V
6 (59,&(6833257
&20 0$1'$1'6,*1$/
D,GHQWLI\&V\VWHPVFRQWUROKLHUDUFK\IRUWKHFRPPRQXVH UQHWZRUN
E ,GHQW LI\O RFDODUHDQHWZRUNFRQWUROSURFH GXUHVIRUQHWZRUNDGPLQL VWUDWLRQDQG
PDQD JHPHQW
F8VHDSSHQGL[HVWRGLDJUDPDQ\F KD QJHVWRVWD QGD UGFRPPXQL FDWLRQVQHW ZRUNV

$&.12:/('*( LIGLVWULEXWHGVHSDUDWH O\IURPEDVHRUGHU 

>$XWKHQWLFDWRU¶VODVWQDPH@
>$XWKHQWLFDWRU¶VUDQN@
$33(1',;(6
',675,%87,21 LIGLVW ULEXWHGVHSD UD WHO\IURPED VH RUGHU 

>&ODVVLILF DWLRQ@


%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  
,IWKH2325'LVIRUDQRIIHQVLYHRSHUDWLRQJHQHUDOO\RQO\WKHHQHP\
(9(17(03RSHUDWLRQVRYHUOD\DQGILUHVRYHUOD\ZLOOEHGLVVHPLQDWHG
ZLWKWKHRUGHU

,IWKH2325'LVIRUDGHIHQVLYHRSHUDWLRQJHQHUDOO\LQDGGLWLRQWRWKH
LWHPVOLVWHGDERYHXQGHURIIHQVLYHRSHUDWLRQVDQHQJLQHHURYHUOD\ZLOODOVR
EHLQFOXGHG2WKHURYHUOD\VVXFKDV$'$DQG6XVWDLQPHQWZLOOEH
FRPSOHWHGDQGUHPDLQSRVWHGRUDFFHVVLEOHLQWKH72&EXWQRWQHFHVVDULO\
GLVVHPLQDWHG

7KHGHYHORSPHQWRIWKHEDVH23/$12325'LVDFRQWLQXRXVSURFHVV
GXULQJWKH0'03EXWEHFRPHVWKHVWDII¶VPDLQIRFXVIROORZLQJWKH
ZDUJDPH7KH%1PD\XVHDPDWUL[RUGHUWRH[SHGLWHWKHILQDOVWHSRIWKH
0'03,QWKLVFDVHWKHRUGHUZLOOEHQHDWO\KDQGZULWWHQZLWKRQO\WKH
HVVHQWLDOLQIRUPDWLRQUHTXLUHGIRUFRPSDQ\FRPPDQGHUVVSHFLDOW\SODWRRQ
OHDGHUVDQGVXSSRUWLQJHOHPHQWVWRLVVXHWKHLUSODQV

2SHUDWLRQV0DWULFHVDQG7HPSODWHV

0DWULFHVDQGWHPSODWHVDUHVWDIIWRROVWRVXSSRUWWKH&RPPDQGHUDQGVWDII
GXULQJWKH0'03WRGHYHORSWKHRUGHU6RXUFH)0$SSHQGL[*

'HFLVLRQ6XSSRUW7HPSODWH '67 

ƒ &UHDWHGE\WKHVWDIIGXULQJ0'03DQGXVHGGXULQJZDUJDPLQJ
ƒ *UDSKLFDOO\UHSUHVHQWV'3VDQGSURMHFWHGVLWXDWLRQV
ƒ ,QGLFDWHV:+(1:+(5(XQGHU:+$7FRQGLWLRQGHFLVLRQLV
UHTXLUHG
• &RQWDLQVWLPHSKDVHOLQHV 73/ WRFRQWUROPRYHPHQW
VRXUFH)0 
• &RQWDLQV1$,VWLHGWR'3V 6RXUFH)0 
• &RQWDLQV7$,VGHYHORSHGGXULQJWDUJHWLQJ
• &RQWDLQV'3VVXSSRUWHGE\RQHRUPRUH&&,5

'HFLVLRQ6XSSRUW0DWUL[

ƒ 3DUWRI'67
ƒ $LGWR&RPPDQGHUDQGVWDIIWRPDNHEDWWOHILHOGGHFLVLRQV
ƒ 6WDIISURGXFW PDWUL[ RIWKH0'03ZDUJDPLQJSURFHVVWKDWOLVWV
• '3V
• /RFDWLRQVRI'3V
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
• &ULWHULDWREHHYDOXDWHGDWHDFK'3
• $FWLRQVRSHUDWLRQVWRRFFXUDWHDFK'3
• 8QLWHOHPHQWWKDWLVWRDFWRUKDVUHVSRQVLELOLW\WRREVHUYH
HDFK'3DQGUHSRUWLQIRUPDWLRQDIIHFWLQJFULWHULDIRUWKH
GHFLVLRQ

6\QFKURQL]DWLRQ0DWUL[
ƒ 3ODQQLQJWRROQRWIRUPDOSDUWRISODQVDQGRUGHUV
ƒ 6\QFKURQL]HVDIULHQGO\&2$DFURVVWLPHVSDFHDQGSXUSRVHLQ
UHODWLRQWRDQ(&2$
ƒ &RPELQHGZLWK'67IRUPVDSRZHUIXOJUDSKLF&WRROWRDVVLVWLQ
ZULWLQJ23/$12325'RQFHD&2$LVVHOHFWHG

773Ź (DFK:))HOHPHQWVHFWLRQFDQFUHDWHWKHLURZQ
V\QFKURQL]DWLRQPDWUL[WRSURYLGHPRUHGHWDLORQVSHFLILF
WDVNV
7KHV\QFKURQL]DWLRQPDWUL[SURYLGHVDQH[FHOOHQWWRROIRU
UHFRUGLQJWKHUHVXOWVRIZDUJDPLQJ

([HFXWLRQ0DWUL[
ƒ 6WDIIWRRO
ƒ &DQUHSUHVHQWHLWKHUDQHQWLUHIRUFH HJ$LU$VVDXOW([HFXWLRQ
0DWUL[ RUD:)) HJ&([HFXWLRQ0DWUL[ 

773Ź $QH[HFXWLRQPDWUL[FDQVHUYHDVDQDQQH[WRDQ23/$1
2325'

$($8*$-,35/(.'%- &'7)48.

*HQHUDO

7KLVVHFWLRQFRQWDLQVVHOHFWHGJUDSKLFVHLWKHUXQLWV\PEROVRUPDQHXYHU
JUDSKLFVWRLQFOXGHGHFLVLRQJUDSKLFV7KHSULPDU\UHIHUHQFHIRUWKLV
VHFWLRQLV)0


%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

8QLW6\PEROV

7KLVVHFWLRQRIIHUVH[DPSOHVRIXQLWV\PEROVWKDWVKRZWKHORJLFDO
DSSOLFDWLRQRIXVLQJDV\PERORUSLFWXUHWRGHSLFWRUJDQL]DWLRQV
HTXLSPHQWDQGDFWLRQV'HWDLOHGGHVFULSWLRQVFDQEHIRXQGLQ)0
7KHIROORZLQJVKRZVWKHFRPPRQRUJDQL]DWLRQXVLQJXQLWV\PEROVRI
W\SLFDOGLYLVLRQDOVWUXFWXUHV

&RQVWUXFWLRQRID8QLW6\PERO














$LU$VVDXOW6\PEROV











$LUERUQH6\PEROV



%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

$UPRU6\PEROV











0HFKDQL]HG,QIDQWU\6\PEROV











,QIDQWU\6\PEROV










/LJKW,QIDQWU\6\PEROV









%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

6WU\NHU%&76\PEROV




0DULQH6\PEROV





%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

6\VWHPDQG(TXLSPHQW6\PEROV

6\VWHPVDQG(TXLSPHQW6\PEROV 


















%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 ! 

6\VWHPDQG(TXLSPHQW6\PEROV


%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 " 

6\VWHPDQG(TXLSPHQW6\PEROV



%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  
6\VWHPDQG(TXLSPHQW6\PEROV

































%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

0DQHXYHU*UDSKLFV

*UDSKLFVFRQWUROPHDVXUHVDUHGLUHFWLYHVJLYHQE\WKHFRPPDQGHUWR
VXERUGLQDWHFRPPDQGHUVWRDVVLJQUHVSRQVLELOLWLHVFRRUGLQDWHILUHDQG
PDQHXYHUDQGFRQWUROFRPEDWRSHUDWLRQV8VXDOO\SODFHGRQPDSVDQG
RYHUOD\VWKHVHJUDSKLFVUHSUHVHQWWKH&RPPDQGHU¶V,QWHQWIRURSHUDWLRQV
7RHQVXUHDQDFFXUDWHDOLJQPHQWRIDQRYHUOD\LWPXVWKDYHDWOHDVWWZR
UHIHUHQFHPDUNVDWRSSRVLWHORFDWLRQV&RORUVDUHDOVRKHOSIXOLQGUDZLQJ
WKHFRQWUROPHDVXUHV
ƒ %ODFN$OOIULHQGO\FRQWUROPHDVXUHV
ƒ 5HG$OOKRVWLOHFRQWUROPHDVXUHVDQGIRUFHV,IWKHDFWXDOFRORUUHGLV
XQDYDLODEOHXVHEODFNEXWPDUNWKHJUDSKLFZLWKWKHDEEUHYLDWLRQ
³(1<´LQDWOHDVWWZRORFDWLRQVRQWKHJUDSKLF
ƒ *UHHQ,IDYDLODEOHIRUDOOQHXWUDOFRQWUROPHDVXUHV,IXQDYDLODEOH
XVHEODFNEXWPDUNWKHJUDSKLFZLWKWKHDEEUHYLDWLRQ³1(8´LQDW
OHDVWWZRORFDWLRQVRQWKHJUDSKLF
ƒ <HOORZ,IDYDLODEOHIRUDOOXQNQRZQFRQWUROPHDVXUHV,I
XQDYDLODEOHXVHEODFNEXWPDUNWKHJUDSKLFZLWKWKHDEEUHYLDWLRQ
³81.´LQDWOHDVWWZRORFDWLRQVRQWKHJUDSKLF
7KHIROORZLQJJUDSKLFVDUHQRWLQWHQGHGWREHDOOLQFOXVLYHEXWDUH
SURYLGHGDVH[DPSOHV

0DQHXYHU*UDSKLFVDQG&RQWURO0HDVXUHV




















%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  





%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  





%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  





%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  





%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  





%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  









%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 ! 

$)$'&.'(.

5HKHDUVDO*UDSKLF


236(&5LVN

7LPH$YDLODEOH
*XLGDQFH
&'5V

/RFDWLRQ

7$&623
2325'3ODQV ,PSURYHG0LVVLRQ
3HUIRUPDQFH
6,75(3V 0LVVLRQ
6XERUGLQDWH8QLW )DPLOLDULW\
&RQGXFW$8QLW
6WDWXV ,PSURYHG&RRUGLQDWLRQ
&'5V *XLGDQFH 5HKHDUVDO
9LVXDO8QGHUVWDQGLQJ
,QWHQW
&2$V 5HILQHG&2$V
6XSSRUW6OLFH

8QLW&'5V

6WDII




*HQHUDO

7KLVVHFWLRQZLOOH[SODLQUHKHDUVDOW\SHVDQGSURFHGXUHVDVWKH\DSSO\WR
DQ\VWDIIRIILFHUIURPWKHVWDQGSRLQWRIPLVVLRQSUHSDUDWLRQ

7KHLQWHQWRIDUHKHDUVDOLVWRSUDFWLFHDFWLRQVWRLPSURYHSHUIRUPDQFH
GXULQJH[HFXWLRQ7KHH[WHQWRIUHKHDUVDOVGHSHQGVRQWKHWLPHDYDLODEOH
5HKHDUVDOVDOORZSDUWLFLSDQWVWREHFRPHIDPLOLDUZLWKWKHSODQDQGWR
WUDQVODWHWKHSODQLQWRDYLVXDOLPSUHVVLRQWKDWRULHQWVWKHPWRWKH
HQYLURQPHQWDQGRWKHUXQLWVZKHQH[HFXWLQJ5HKHDUVDOVLPSULQWDPHQWDO
SLFWXUHRIWKHVHTXHQFHRINH\DFWLRQVZLWKLQWKHXSFRPLQJRSHUDWLRQ
5HKHDUVDOVDOVRSURYLGHDIRUXPIRUFRRUGLQDWLRQDPRQJVXERUGLQDWHDQG
VXSSRUWLQJOHDGHUV5HKHDUVDOVHPSKDVL]HWLPHVORFDWLRQVDQGVROXWLRQV
IRUFRRUGLQDWLQJDFWLRQVWRDFKLHYHV\QFKURQL]DWLRQDWFULWLFDOSRLQWVGXULQJ
H[HFXWLRQ

7KH%1¶VOHDGHUVKLSUHKHDUVHVWKHSODQDJDLQVWDZLGHUDQJHRIOLNHO\
HQHP\&2$VWKDWFDXVHWKHFRPELQHGDUPV%1 &$% WRH[HFXWHYDULRXV
PDQHXYHURSWLRQVDWGLIIHUHQWWLPHVDQGORFDWLRQV7KHJRDOLVWRH[HUFLVH
WKH%1¶V&V\VWHPDQGVXERUGLQDWHFRPPDQGHUVDJDLQVWSRWHQWLDO
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
 " 
VLWXDWLRQVWKDWPD\DULVHGXULQJH[HFXWLRQDQGIRUFHGHFLVLRQPDNLQJ
XQGHUWKHDQWLFLSDWHGFRQGLWLRQVRIWKHEDWWOH7KLVSURPRWHVIOH[LELOLW\DQG
DJLOLW\ZKLOHUHLQIRUFLQJWKH&RPPDQGHU¶V,QWHQW

:KDWWR*DLQIURPD5HKHDUVDO

6HHLQJWKHHQHP\WHUUDLQ

&RPPDQGHUDEOHWRSUHVHQWKLV
LQWHQWDQGJXLGDQFHGLUHFWO\WR
9LVXDOL]H DQGIULHQGO\XQLWVDQG 
VXERUGLQDWHVDQGJDLQWKHLU WKHLUUHODWLRQVKLSV
VXSSRUWDQGXQGHUVWDQGLQJ 


0RWLYDWH 5HKHDUVDO &ODULI\ 

(QVXUHWKDWDOOVXERUGLQDWHV
XQGHUVWDQGWKHPLVVLRQ

7KHDUUDQJHPHQWRIPLOLWDU\
DFWLRQVLQWLPHVSDFHDQG DQGWKHLUVXSSRUWLQJ 
SXUSRVHWRSURGXFHPD[LPXP UROHV
UHODWLYHFRPEDWSRZHUDW 
DGHFLVLYHSODFHDQGWLPH 6\QFKURQL]H 
)0


)LYH5HKHDUVDO7\SHV

7KHILYHW\SHVRIUHKHDUVDOVDUH 6RXUFH)0 
ƒ &RQILUPDWLRQEULHI
ƒ %DFNEULHI
ƒ &RPELQHGDUPVUHKHDUVDO &$5 
ƒ 6XSSRUWUHKHDUVDO
ƒ %DWWOHGULOO623UHKHDUVDO

&RQILUPDWLRQ%ULHI
7KLVEULHILVURXWLQHO\SHUIRUPHGE\DVXERUGLQDWHOHDGHULPPHGLDWHO\DIWHU
UHFHLYLQJDQ\LQVWUXFWLRQVVXFKDVDQ2325'D)5$*2HWF7KHKLJKHU
&RPPDQGHULVEULHIHGRQWKHVXERUGLQDWH¶VXQGHUVWDQGLQJRIKLVLQWHQWKLV
VSHFLILFWDVNDQGSXUSRVHDQGWKHUHODWLRQVKLSEHWZHHQWKHVXERUGLQDWH
XQLW¶VPLVVLRQVDQGRWKHUXQLWVLQWKHRSHUDWLRQ

%DFN%ULHI
7KLVEULHILVQRUPDOO\SHUIRUPHGWKURXJKRXWWKH0'037KLVUHKHDUVDO
DOORZVWKH&RPPDQGHUWRFODULI\KLVLQWHQWHDUO\LQWKHVXERUGLQDWH¶V
WDFWLFDOHVWLPDWHSURFHGXUH,WDOORZVWKHKLJKHU&RPPDQGHUWR LGHQWLI\
SUREOHPVLQKLVFRQFHSWRIRSHUDWLRQ LGHQWLI\SUREOHPVLQDVXERUGLQDWH
XQLWFRPPDQGHU¶VFRQFHSWDQG OHDUQKRZVXERUGLQDWHVLQWHQGWR
DFFRPSOLVKWKHLUPLVVLRQ

&RPELQHG$UPV5HKHDUVDO &$5 
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
$&$5LVQRUPDOO\FRQGXFWHGE\DPDQHXYHUXQLW+4DIWHUVXERUGLQDWH
XQLWVKDYHLVVXHGWKHLU2325'7KLVUHKHDUVDOHQVXUHVWKDWVXERUGLQDWH
SODQVDUHV\QFKURQL]HGZLWKRWKHUXQLWVDQGWKDWWKHSODQVRIDOO
VXERUGLQDWHFRPPDQGHUVZLOODFKLHYHWKHLQWHQWRIWKHKLJKHUFRPPDQGHU
8QLWVVKRXOGVWULYHWRFRQGXFWFRPELQHGDUPVUHKHDUVDOVZKHQHYHU
SRVVLEOH

6XSSRUW5HKHDUVDO
8QLWVXVXDOO\SHUIRUPVXSSRUWUHKHDUVDOVZLWKLQWKHIUDPHZRUNRIDVLQJOH
RUOLPLWHGQXPEHURIRSHUDWLQJV\VWHPV6XSSRUWUHKHDUVDOVDUHGHVLJQHGWR
HQVXUHWKDWWKHVSHFLILF:))FDQVXSSRUWWKHKLJKHU&RPPDQGHU¶VSODQ
DFFRPSOLVKDOODVVLJQHGPLVVLRQVDQGV\QFKURQL]HWKHSDUWLFXODU:))SODQ
ZLWKWKHPDQHXYHUSODQ

%DWWOH'ULOO6235HKHDUVDO
7KLVLVFRQGXFWHGWRHQVXUHWKDWDOOSDUWLFLSDQWVXQGHUVWDQGDWHFKQLTXHRUD
VSHFLILFVHWRISURFHGXUHV7KLVW\SHRIUHKHDUVDOLVSHUIRUPHGDWDOO
HFKHORQV PRVWH[WHQVLYHO\DWSODWRRQVTXDGDQGVHFWLRQ 7KH\DUH
SHUIRUPHGWKURXJKRXWWKH0'03WLPHOLQH

6L[5HKHDUVDO7HFKQLTXHV

7KHVL[WHFKQLTXHVIRUFRQGXFWLQJDUHKHDUVDODUH 6RXUFH)0 
ƒ )XOOGUHVVUHKHDUVDO
ƒ 5HGXFHGIRUFHUHKHDUVDO
ƒ 7HUUDLQPRGHOUHKHDUVDO
ƒ 6NHWFKPDSUHKHDUVDO
ƒ 0DSUHKHDUVDO
ƒ 1HWZRUNUHKHDUVDO

)XOO'UHVV5HKHDUVDO
7KLVUHKHDUVDOUHYHDOVWKHPRVWGHWDLOHGXQGHUVWDQGLQJRIWKHPLVVLRQ,W
LQYROYHVHYHU\6ROGLHUDQGV\VWHPSDUWLFLSDWLQJLQWKHRSHUDWLRQDQGLVWKH
PRVWWLPHDQGUHVRXUFHLQWHQVLYHWHFKQLTXH

5HGXFHG)RUFH5HKHDUVDO
7KLVUHKHDUVDOLQYROYHVRQO\WKHXQLW¶VDQGVXERUGLQDWHXQLW¶VNH\OHDGHUV
DQGLVOHVVWLPHDQGUHVRXUFHLQWHQVLYHWKDQWKHIXOOGUHVVUHKHDUVDO

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  


7HUUDLQ0RGHO5HKHDUVDO
7KLVUHKHDUVDOLVWKHPRVWSRSXODUUHKHDUVDOWHFKQLTXH,WUHTXLUHVIHZHU
UHVRXUFHVDQGWLPHWKDQWKHIXOOGUHVVRUUHGXFHGIRUFHUHKHDUVDOV7KH
&RPPDQGHUGHWHUPLQHVWKHOHYHORIOHDGHULQYROYHPHQW0RGHOPXVWEH
DFFXUDWHDQGLQVXIILFLHQWGHWDLOWRDOORZEDWWOHILHOGYLVXDOL]DWLRQ

6NHWFK0DS5HKHDUVDO
&DQEHXVHGDOPRVWDQ\ZKHUHGD\RUQLJKW<RXXVHWKHVDPHSURFHGXUHV
DVWKHWHUUDLQPRGHOWHFKQLTXHH[FHSWWKHFRPPDQGHUXVHVDVNHWFKLQ
SODFHRIWKHPRGHO6NHWFKPXVWEHODUJHHQRXJKIRUDOOSDUWLFLSDQWVWRVHH
DVHDFKVXERUGLQDWHFRPPDQGHUZDONVWKURXJKWKHYHUEDOLQWHUDFWLYH
H[HFXWLRQRIWKHRSHUDWLRQ

0DS5HKHDUVDO
6LPLODUWRWKHVNHWFKPDSUHKHDUVDOH[FHSWWKH&RPPDQGHUXVHVDPDSDQG
RSHUDWLRQVRYHUOD\RIWKHVDPHVFDOHDVEHLQJXVHGWRSODQDQGFRQWUROWKH
ILJKW7KLVWHFKQLTXHLVJHQHUDOO\WKHOHDVWHIIHFWLYHEHFDXVHRIPDSVFDOH

773Ź 'XULQJDQHWZRUNUHKHDUVDODXQLWVKRXOGXVHIUHTXHQFLHV
RWKHUWKDQSODQQHGRSHUDWLRQDOIUHTXHQFLHV
5HIHUHQFH)0,

1HWZRUN5HKHDUVDO
&RQGXFWHGE\LQWHUDFWLYHO\DQGYHUEDOO\H[HFXWLQJFULWLFDOSRUWLRQVRIWKH
RSHUDWLRQRYHUHVWDEOLVKHGFRPPXQLFDWLRQVQHWZRUNV7KH&RPPDQGHU
HVWDEOLVKHVDJHQHUDOVHTXHQFHRIHYHQWV7KHXQLWUHKHDUVHVRQO\WKH
HVVHQWLDOPRVWFULWLFDOSRUWLRQVRIWKHRSHUDWLRQ&RQVLGHUDWLRQVDUH
ƒ 5HKHDUVDOH[HFXWHGRYHUDZLGHDUHDQHWZRUN :$1 RUORFDODUHD
QHWZRUN /$1 
ƒ 5HTXLUHVDOO,1)26<6QHHGHGWRH[HFXWHWKDWSRUWLRQRIWKHRSHUDWLRQ
ƒ 3DUWLFLSDQWVUHTXLUHZRUNLQJ,1)26<6FRS\RI2325'RYHUOD\V
ƒ &3VFDQUHKHDUVHEDWWOHWUDFNLQJGXULQJQHWZRUNUHKHDUVDO
ƒ 7LPHFRQVXPLQJHVSHFLDOO\LIWKHUHLVQRFOHDUXQLW623DQGQRWDOO
XQLWVKDYHZRUNLQJFRPPXQLFDWLRQVRUDUHQRWRQWKHQHW
ƒ 7HFKQLTXHOHQGVLWVHOIWRPXOWLHFKHORQUHKHDUVDO
ƒ ,IH[HFXWHGIURPFXUUHQWXQLWORFDWLRQVYROXPHRIFRPPXQLFDWLRQV
FDQSUHVHQW236(&YXOQHUDELOLW\
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
ƒ 9XOQHUDEOHWRHQHP\PRQLWRULQJ 236(&YXOQHUDELOLW\ 
ƒ 7HUUDLQLVFRQVLGHUDWLRQLIRWKHUWKDQDFWXDOXQLWORFDWLRQV

773Ź 5HKHDUVH5HKHDUVH5HKHDUVH&RQGXFWUHKHDUVDOVZKHQHYHU
SRVVLEOHIRUHDFKPLVVLRQ
%1&RPPDQGHU¶V+DQGERRN86$:&

7KHIROORZLQJILJXUHGHSLFWVWKHUHODWLRQVKLSVEHWZHHQWKHVL[UHKHDUVDO
WHFKQLTXHVDQGWKHDPRXQWRISUHSDUDWLRQUHVRXUFHVUHTXLUHGWLPHXVHG
236(&ULVNOHDGHUVKLSSDUWLFLSDWLRQDQGWKHDPRXQWRIGHWDLOHG
XQGHUVWDQGLQJWKDWWKHSDUWLFLSDQWVZLOOOLNHO\JDLQ

7\SHVRI5HKHDUVDOV

0$;,080

)8//'5(66
5(+($56$/
35(3$5$7,21 5(6285&(6

5('8&(')25&(
5(+($56$/

7(55$,102'(/
7,0( 236(& 5(+($56$/
86(' 5,6.
6.(7&+0$3
5(+($56$/

0$3
5(+($56$/

1(7:25.
5(+($56$/

/($'(53$57,&,3$7,21
0,1,080 '(7$,/('81'(567$1',1**$,1(' 0$;,080
)0$SSHQGL[)


$VSUHYLRXVO\VWDWHGWKHPRVWSRSXODUW\SHRIUHKHDUVDOWHFKQLTXHLVWKH
WHUUDLQPRGHOUHKHDUVDO,QRUGHUIRUWKLVWHFKQLTXHWREHHIIHFWLYHWKH
IROORZLQJWRROVPXVWEHLQFRUSRUDWHG

773Ź $OZD\VFRQVWUXFWDVDQGWDEOHWRDLGLQWKHUHKHDUVDORIQHZ
2325'V
%1&RPPDQGHU¶V+DQGERRN86$:&

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  


7HUUDLQ0RGHO5HKHDUVDO7RROV

 6\QFKURQL]DWLRQPDWUL[  .H\WHUUDLQ 
 'HFLVLRQVXSSRUWWHPSODWH  'HFLVLRQSRLQWV 
 *ULGGHVLJQDWLRQ  &RRUGLQDWLRQSRLQWV 
 0DJQHWLFQRUWK  3DVVDJHSRLQWV 
 5HOLHI  5RXWHVODQHV 
 %RXQGDULHVDQGREMHFWLYHV  (QJDJHPHQWDUHDV 
 )LUHFRQWUROPHDVXUHV  $[LVRIDGYDQFH 
 2EVWDFOHEHOWV  &ULWLFDOHYHQWV 
 7DVNRUJDQL]DWLRQ 
 &RPPDQGHU¶VFULWLFDOLQIRUPDWLRQUHTXLUHPHQWV 
 'D\QLJKWLQGLFDWRU GD\OLJKWPRRQOLJKW 




5HKHDUVDO5HVSRQVLELOLWLHV

3ODQQLQJ
,QKLV,QLWLDO*XLGDQFHWKH&RPPDQGHUSURYLGHVWKHW\SHRIUHKHDUVDO
WHFKQLTXHSODFHDWWHQGHHVDQGHQHP\&2$WREHSRUWUD\HG7KH;2
HQVXUHVDOOUHKHDUVDOVDUHLPEHGGHGLQWKHXQLW¶VWLPHPDQDJHPHQWV\VWHP
6RXUFH)0SJ) 

3UHSDUDWLRQ
7KH&RPPDQGHULGHDOO\SUHSDUHVWRUHKHDUVHWKHPLVVLRQZLWKHYHQWV
SKDVHGLQSURSHURUGHUIURPVWDUWWRILQLVK7KH;2WKURXJKZDUJDPLQJ
FRRUGLQDWHVDQGDOORFDWHVWLPHIRUWKHNH\HYHQWVUHTXLULQJDUHKHDUVDO
HVWDEOLVKHVWLPHOLPLWVYHULILHVVLWHSUHSDUDWLRQDQGGHWHUPLQHVWKHPHWKRG
IRUFRQWUROOLQJWKHUHKHDUVDODQGHQVXUHVLWVORJLFDOIORZ6XERUGLQDWH
OHDGHUVFRPSOHWHWKHLUSODQQLQJSURFHVV++4GHFRQIOLFWVDOOVXEXQLW
JUDSKLFVDQGSXEOLVKHVFRPSRVLWHRYHUOD\V

([HFXWLRQ
7KH&RPPDQGHUPXVWFRPPDQGWKHUHKHDUVDOMXVWDVKHZLOOFRPPDQGWKH
ILJKWPDLQWDLQLQJIRFXVDQGOHYHORILQWHQVLW\DOORZLQJDEVROXWHO\QR
SRWHQWLDOIRUVXERUGLQDWHFRQIXVLRQ7KHUHKHDUVDO¶VSXUSRVHLVWRYDOLGDWH
V\QFKURQL]DWLRQ±WKHZKDWZKHQDQGZKHUHRIVXERUGLQDWHXQLW¶VWDVNVWR
H[HFXWHWKH&RPPDQGHU¶V,QWHQW7KH;2VKRXOGGLUHFWWKHUHKHDUVDO7KH
6DVVLVWVWKH&RPPDQGHULQWKHILJKWIRUZDUGDQGVKRXOGUHKHDUVHWKDW
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
WDVN7KH6EDVHVKLVH[HFXWLRQDFWLRQVRQWKHHQHP\&2$WKH
&RPPDQGHUVHOHFWHGGXULQJWKHSODQQLQJSURFHVV6XERUGLQDWHOHDGHUV
DUWLFXODWHWKHLUXQLWV¶DFWLRQVDQGUHVSRQVLELOLWLHV5HFRUGHUUHVWDWHVDQ\
FKDQJHVFRRUGLQDWLRQRUFODULILFDWLRQ7KHVWDIIXSGDWHVWKH2325'WKH
'67DQGWKHV\QFKURQL]DWLRQPDWUL[ 6RXUFH)0SS) 

5HKHDUVDO6FULSW

$VFULSWLVDQHIIHFWLYHWHFKQLTXHIRUFRQWUROOLQJDUHKHDUVDO7KHUHDUH
QRUPDOO\WZRPDMRUSDUWVWRDUHKHDUVDOVFULSW
ƒ $JHQGD
ƒ 5HVSRQVHVHTXHQFH

$JHQGD
8QLWVKDYHWRUHKHDUVHZLWKWKHWRROVWKH\KDYHHVSHFLDOO\
ƒ 2325'
ƒ 6\QFKURQL]DWLRQPDWUL[
ƒ '67
ƒ )LUHVXSSRUWH[HFXWLRQPDWUL[ IRUILUHVXSSRUW )6 UHKHDUVDO 
ƒ /RJLVWLFVV\QFKURQL]DWLRQPDWUL[ VXSSRUWUHKHDUVDO 
ƒ &H[HFXWLRQPDWUL[

5HVSRQVH6HTXHQFH
3OD\HUVPXVWKDYHDORJLFDOUHVSRQVHVHTXHQFH7KLVFRXOGEHE\:))RU
E\XQLW7KHVHTXHQFHVKRXOGEHGHWHUPLQHGEHIRUHKDQGDQGSRVWHGIRUDOO
WRVHH7KHIROORZLQJJXLGHOLQHVIURP)0SURYLGHDQH[DPSOHRIWKH
FRQGXFWRIWKHUHKHDUVDOLQDEHIRUHGXULQJDQGDIWHUIRUPDW

%HIRUHWKHUHKHDUVDO

7KH5HKHDUVDO'LUHFWRUSHUIRUPVWKHIROORZLQJDFWLRQV
ƒ 6WDUWVRQWLPHDQGFDOOVUROO
ƒ %ULHIVSDUWLFLSDQWV
ƒ ,QWURGXFHVVHOIDQGSDUWLFLSDQWV
ƒ 3URYLGHVDQRYHUYLHZDQGDGPLQLVWUDWLYHLQVWUXFWLRQV
ƒ 2ULHQWVSDUWLFLSDQWVWRWKHWUDLQLQJDLGDQGRUWHUUDLQ
ƒ 3URYLGHVDQGGLVFXVVHVWKHVFULSWWRFRQWUROWKHUHKHDUVDO
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
ƒ 3URYLGHVWKHJURXQGUXOHVDQGUHYLHZVWKHUHKHDUVDO623
ƒ %ULHIVWKHWLPHOLQHDQGDVNVIRUTXHVWLRQV

773Ź $QHIIHFWLYHUHKHDUVDO623IDFLOLWDWHVWKHUHKHDUVDO,WVKRXOG
LQFOXGHDVDPLQLPXP  ZKRFRQWUROVWKHUHKHDUVDO"  
ZKRZDONVWKURXJKWKHUHKHDUVDOVFULSW"  ZKHQVSHFLDOVWDII
RIILFHUVEULHIWKH&RPPDQGHUDQG  WKHUHODWLRQVKLS
EHWZHHQKRZWKHH[HFXWLRQPDWUL[SRUWUD\VHYHQWVDQGKRZ
HYHQWVDUHUHKHDUVHG

'XULQJWKHUHKHDUVDO

7KHIROORZLQJJHQHULFVWHSVZHUHGHYHORSHGIRUD&$5EXWFRXOGEH
PRGLILHGIRUILUHVXSSRUWRUVXSSRUW VXVWDLQPHQW UHKHDUVDOV
ƒ 6WHS±6GHSOR\VHQHP\IRUFHVEULHIVPRVWOLNHO\(&2$DQG
VWDWXVRI,65RSHUDWLRQV
ƒ 6WHS±6DQGVWDIIGHSOR\IULHQGO\IRUFHVEULHIGLVSRVLWLRQ
SXUSRVHWDVNRUJDQL]DWLRQVWUHQJWK
ƒ 6WHS±$GYDQFHPHQWRIHQHP\IRUFHVIURPH[HFXWLRQPDWUL[HQHP\
DFWLRQVEDVHGRQ6,77(036SRUWUD\VWKHHQHP\
ƒ 6WHS±&RPPDQGHUDVVHVVHVVLWXDWLRQWRGHWHUPLQHLID'3KDVEHHQ
UHDFKHG
ƒ ,I'3&RPPDQGHUGHFLGHVWRFRQWLQXHRUVHOHFWDEUDQFK
ƒ ,IQR'3FRQWLQXHWRQH[WHYHQWIURPH[HFXWLRQPDWUL[UHSHDWLQJ
6WHSV
ƒ 6WHS±(QGVWDWHUHDFKHGIRUWKDW&2$
ƒ 6WHS±5HKHDUVDO'LUHFWRU³UHFRFNV´WR'3ZKHUHEUDQFKEHJLQV
VWDIIUHSHDWV6WHSVXQWLODOOEUDQFKHVDUHDGGUHVVHGWLPHSHUPLWWLQJ

$IWHUWKHUHKHDUVDO

ƒ &RPPDQGHUOHDGVUHKHDUVDODIWHUDFWLRQUHYLHZ $$5 
ƒ &RPPDQGHUGLUHFWVWKDWUHTXLUHGPLQLPXPPRGLILFDWLRQV
UHILQHPHQWVEHPDGHWR2325'
ƒ 6WDIIPDNHVQHFHVVDU\FKDQJHVWR'672325'H[HFXWLRQPDWUL[
ƒ 6XERUGLQDWHFRPPDQGHUVLQFRUSRUDWHFKDQJHVLQWRWKHLU2325'V

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  
ƒ 6WDIIFRQYHUWV)5$*2IURPYHUEDOWRZULWWHQDVVRRQDVSRVVLEOH
$6$3 

%DFN%ULHIV

773Ź $WWHQGHHVQHHGWREHIDPLOLDUZLWKWKHVHDVSHFWVRIWKHSODQ
RWKHUZLVHWKHUHKHDUVDOZLOOEHFRPHDEULHILQJUDWKHUWKDQD
UHKHDUVDO,WVKRXOGQRWODVWPRUHWKDQQLQHW\PLQXWHV

%DFNEULHIVSUHYLRXVO\PHQWLRQHGDVRQHRIWKHILYHW\SHVRIUHKHDUVDOVLV
DYDOXDEOHWRROIRUWKH&RPPDQGHUWRHQVXUHRSHUDWLRQDOFODULW\

773Ź ,IWLPHGRHVQRWDOORZDUHKHDUVDOHQVXUHWKDWD%$&.%5,()
LVFRQGXFWHG
%1&RPPDQGHU¶V+DQGERRN86$:&

6DPSOH%DFN%ULHI)RUPDW

)LQDOEDFNEULHIVDUHFRQGXFWHGDIWHUWKH%12325'EXWEHIRUHWKH
FRPSDQ\2325'V(DFKFRPSDQ\&RPPDQGHUEDFNEULHIVWKH%1
&RPPDQGHUXVLQJDEORZXSVNHWFK EXWFKHUEORFNVL]H DQGGHVNVLGH
ELQGHU7LPHDOORWWHGLVQRUPDOO\WZHQW\PLQXWHVIRUHDFKFRPSDQ\
&RPPDQGHUVLQFHWLPHLVH[WUHPHO\OLPLWHGPD[LPL]LQJWKHXVHRI
DXWRPDWHGV\VWHPVPD\VDYHWLPH7KHORFDWLRQLVQRUPDOO\WKH%172&

6DPSOH%DFN%ULHI$JHQGD

ƒ 6SHFLILHG7DVNV GHVNVLGHELQGHU 
ƒ ,PSOLHG7DVNV GHVNVLGHELQGHU 
ƒ (VVHQWLDO7DVNV GHVNVLGHELQGHU 
ƒ 0LVVLRQ GHVNVLGHRUEORZXS 
ƒ ,QWHQW GHVNVLGHRUEORZXS 
ƒ &RQFHSWRIWKH2SHUDWLRQ EORZXS 
ƒ &RQFHSWRI)LUHV EORZXS 
ƒ &RQFHSWRI$LU'HIHQVH EORZXS 
ƒ &RQFHSWRI(QJLQHHU6XSSRUW EORZXS 
ƒ &RQFHSWRI&RPPXQLFDWLRQV 6  EORZXS 

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 
ƒ &RQFHSWRI6XSSRUW EORZXS 
ƒ &DVXDOW\HYDFXDWLRQ &$6(9$& &RQFHSW EORZXS 
ƒ %DWWOH&RPPDQG&RQFHSW EORZXS 
ƒ ,VVXHV 2325'7LPH3ODFH 

6DPSOH6\QFKURQL]DWLRQ0DWUL[

8QLW6\QFKURQL]DWLRQ0DWUL[81,725'(5BBBBBBBBBBBB'7*BBBBBBBBBBBBBB23(5$7,21BBBBBBBBBBBBBBBBB

3+$6('$<

+285

'(&,6,21
32,17

(1(0<
$&7,21

'(&,6,21
32,176

0$1(89(5

),5(637

02%6859

&

0$10('

6867$,1

),;

$50

)8(/

029(



*HQHUDO5HKHDUVDO7LSVDQG5HPLQGHUV

773Ź 7KH6VKRXOGUHYLHZWKHIROORZLQJWLSVDQGUHPLQGHUVWR
KLJKOLJKWWKRVHWKDWUHTXLUHKLVDWWHQWLRQDQGSUHSDUDWLRQ

3URYLGHLQIRUPDWLRQUHJDUGLQJUHKHDUVDOW\SHWHFKQLTXHORFDWLRQ
DWWHQGHHVDQGHQHP\&2$VDVSDUWRIJXLGDQFHGXULQJPLVVLRQDQDO\VLV
DQGUHHYDOXDWHDIWHUVHOHFWLRQRID&2$

,GHQWLI\GHVLUHGUHKHDUVDOHQGVWDWH

(QVXUHUHKHDUVDOVDUHHPEHGGHGLQWKHXQLW¶VWLPHVFKHGXOHDQGEDWWOH
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
 ! 
UK\WKP7LPHDYDLODEOHLVDNH\FRQVLGHUDWLRQ

3XEOLVKWLPHORFDWLRQRIWKHUHKHDUVDOLQWKH2325'RULQD
:$512

'HWHUPLQHUHKHDUVDOSURGXFWVEDVHGRQW\SHWHFKQLTXHDQG0(77
7&PLVVLRQYDULDEOHV

:KRSUHSDUHVWKHUHKHDUVDOVLWH V "

&RRUGLQDWHZLWKDGMDFHQWXQLWVWRKDYHOLDLVRQRIILFHUV /12 DWWHQG

*REDFNWRZDUJDPLQJDQGEHIDPLOLDUZLWKWKH&2$VHOHFWHGE\WKH
&RPPDQGHU5HYLHZWKHV\QFKURQL]DWLRQDQGGHFLVLRQVXSSRUWPDWUL[

&KHFNWKH2325':KHWKHUILQDORUQRWZKDWNH\HYHQWVDUH\RX
SDUWRI«ZKRHOVHSDUWLFLSDWHVLQWKDWHYHQW"

&KHFNWKHUHKHDUVDOVFULSWWRNQRZZKHUH\RXILWLQWKHDJHQGDDQG
UHVSRQVHVHTXHQFH&RQVLGHUZKHWKHU\RXVKRXOGUHKHDUVH\RXUSDUWDKHDG
RIWLPH

,QFOXGHPRUHGHWDLOWKHORZHUWKHHFKHORQWREHUHKHDUVHG

0DWFKUHKHDUVDOSDUWLFLSDQWVZLWKVHOHFWHGWDVNVUHKHDUVDOW\SHDQG
WHFKQLTXH

$YRLGXQQHFHVVDU\DWWHQGHHVWRDYRLGGLVWUDFWLRQ

3D\DWWHQWLRQWRDQ\DFWLYLW\WKDWPD\LPSDFWWLPHHJPRYHPHQWWR
DQGIURPDUHKHDUVDOVLWH

6\QFKURQL]HXQLWUHKHDUVDOV5HKHDUVDOUHTXLUHPHQWVPXVWQRWEHVR
QXPHURXVDQGFORVHO\VSDFHGDVWRLPSDFWVXERUGLQDWHXQLWVKDYLQJWKH
WLPHWRFRPSOHWHWKHLUUHKHDUVDOV

3ULRULWL]HUHKHDUVDOWDVNVEDVHGRQFULWLFDOLW\FRPSOH[LW\DQGKRZ
ZHOOWUDLQHGWKHXQLWLVUHJDUGLQJWKHWDVNV

,GHQWLI\WKHNH\GHFLVLRQVWKDWPD\KDYHWREHPDGHGXULQJWKHILJKW
DQGWKHFRQGLWLRQVWKDWZLOOGULYHWKRVHGHFLVLRQV

$UUDQJHWKHUHKHDUVDOZLWKPLVVLRQHYHQWVSKDVHGLQWKHSURSHURUGHU
IURPVWDUWWRILQLVKXQOHVVWLPHGRHVQRWDOORZRUWKH&RPPDQGHU
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
 !" 
GHVLUHVRWKHUZLVH

$OORFDWHWLPHIRUHYHU\NH\HYHQWWREHUHKHDUVHG:LWKLQWKHWLPH
DYDLODEOHEHSUHSDUHGZLWK&RPPDQGHUDSSURYDOWRSULRULWL]HDQG
GRZQVFRSHWKHQXPEHURINH\HYHQWVWREHUHKHDUVHG

,QYHQWRU\WKHUHKHDUVDOWRRONLWWRHQVXUHLWVXSSRUWVWKHUHKHDUVDOW\SH
DQGWHFKQLTXHVHOHFWHGE\WKH&RPPDQGHU

&KHFNWKHWDVNRUJDQL]DWLRQIRUWKHPLVVLRQWREHUHKHDUVHG,VLW
FRPSOHWH"%DVHGRQLWZKRQHHGVWRDWWHQGWKHUHKHDUVDO"

&KHFNWKHNH\HYHQWVVHOHFWHGIRUUHKHDUVDO$UHWKHUHVRPHWKHXQLW
LVPRUHSURILFLHQWDWDFFRPSOLVKLQJWKDQRWKHUV",IVRNQRZLQJZKLFK
RQHVPD\KHOS\RXSULRULWL]HUHKHDUVDOHYHQWVLIWKHUHLVOLPLWHGWLPH
DYDLODEOH

&RQGXFWDQDVVHVVPHQWRIWKHOHYHORIXQLWSUHSDUDWLRQEHIRUHD
UHKHDUVDOEHJLQV

'RDQHYHQWDQDO\VLVIRUHDFKHYHQWDVWRWLPHQHHGHGVLWHUHTXLUHG
VLWHSUHSDUDWLRQVXSSRUWWRROVUHTXLUHGVHFXULW\HYHQWFRQWURO
PHWKRGRORJ\KRZDIIHFWHGE\WKH&RPPDQGHU¶V*XLGDQFHXQLWSHUVRQQHO
FULWLFDOWRHQDFWPHQWRIWKHHYHQWSODFHPHQWZLWKLQWKHUHKHDUVDOVFKHPH
ZKDWHYHQWVIDOOEHIRUHDQGDIWHU DQGZDUJDPLQJUHVXOWV

5HYLHZWKH++4RUGHULGHQWLI\DQ\SHUFHLYHGLVVXHVDQGGHWHUPLQH
KRZWKH\VKRXOGEHDGGUHVVHGGXULQJWKHUHKHDUVDO

&KHFNWKHJUDSKLFVRIVXERUGLQDWHHOHPHQWVDQGGHFRQIOLFW
GLVFUHSDQFLHV7KHJUDSKLFVRIKLJKHUDQGVXERUGLQDWHHFKHORQVPXVW
³QHVW´DSSURSULDWHO\2QFHDFFRPSOLVKHGSUHSDUHDQGSXEOLVKFRPSRVLWH
RYHUOD\VIRUWKHUHKHDUVDO$WDPLQLPXPWKHFRPSRVLWHRYHUOD\VVKRXOG
DGGUHVVWKHPRYHPHQWDQGPDQHXYHUILUHVDQGVXVWDLQPHQW:))

3UHSDUHDPDVWHURYHUOD\DQGSODFHLWDWWKHUHKHDUVDOVLWHIRUVWDIIDQG
VXERUGLQDWHXQLWVWRLQFRUSRUDWHWKHLUJUDSKLFV0RQLWRUDQGFRQWUROWKH
HQWULHV

*HWDFRPSRVLWHRYHUOD\ILQLVKHGDVHDUO\DVSRVVLEOHDQGSURYLGHWR
UHKHDUVDOSDUWLFLSDQWVEHIRUHWKHUHKHDUVDO,WSUHYHQWVWKHQHHGIRU
SDUWLFLSDQWVWRVSHQGYDOXDEOHUHKHDUVDOWLPHFRS\LQJJUDSKLFVGXULQJ
UHKHDUVDOH[HFXWLRQ

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
 ! 
'RDSHUVRQDOUHKHDUVDOEHIRUHWKHXQLWUHKHDUVDOEHJLQVWRHQVXUH
\RXUUROHDQGDFWLRQVGXULQJWKHUHKHDUVDODUHIRFXVHGWRDSSURSULDWHNH\
HYHQWVDQGZLOODYRLGSRWHQWLDOFRQIXVLRQ

8VHDUHKHDUVDOWRUHILQHDQH[LVWLQJRUGHU

,QFRUSRUDWHYDOLGDWLRQWRROVOLNHDUWLOOHU\UDQJHIDQVDQG$'$
WHPSODWHVDVPD\EHQHHGHG

7KHRSHUDWLRQDOSODQUHVXOWLQJIURPWKH0'03UHJDUGOHVVRIWZHDNV
DQGFKDQJHVLVWKH&RPPDQGHU¶VSODQWRILJKWWKHILJKWGXULQJWKH
UHKHDUVDO

9DOLGDWHV\QFKURQL]DWLRQ WKHZKDWZKHUHDQGZKHQRIVXERUGLQDWH
XQLWWDVNVWKDWH[HFXWHWKH&RPPDQGHU¶V,QWHQW 

6WDWHWKHGHFLVLRQVWKDWPD\KDYHWREHPDGHGXULQJWKHUHKHDUVDOILJKW
DQGWKHFRQGLWLRQVWKDWZLOOGULYHWKRVHGHFLVLRQV«EHIRUHWKHUHKHDUVDO
EHJLQV

%HDSURDFWLYH&QRGHWRDFKLHYHWKH&RPPDQGHU¶VYLVLRQIRU
VXFFHVV$FFRUGLQJO\WKHXQLWPHPEHU HJWKH;2 LQFKDUJHRIWKH
72&VKRXOGKDYHDGLUHFWRU\UROHLQWKHUHKHDUVDOWRKDYHWKHNQRZOHGJH
WKDWHQVXUHVXQLWV\QFKURQL]DWLRQLQWKHDFWXDOILJKW

.QRZ\RXUUROHDQGEULQJWKHQHFHVVDU\HTXLSPHQWWRIDFLOLWDWH
H[HFXWLRQRINH\HYHQWVDQGDGMXVWPHQWVDVQHFHVVDU\

(QVXUHWKDWUHTXLUHGOLQNXSVKDYHEHHQFRPSOHWHGDQGVFKHGXOHG

5HKHDUVHWKHV\QFKURQL]DWLRQRIFRPEDWSRZHUIURPIODQNSDUHQW
DQGVXERUGLQDWHXQLWVWKDWDUHVRPHWLPHVEH\RQGWKHFRPPXQLFDWLRQV
OLQNZLWKWKH&RPPDQGHUDQG6

6\QFKURQL]HWKHDFWLYLWLHVRIHDFK:))E\UHKHDUVLQJLQGLFDWRUVE\
WLPHRUHYHQWZKHQWKH\DUHWLHGWRDNH\HYHQWHJFRPPLWWKHUHVHUYH
ILUHDVSHFLILFWDUJHWHWF

%DODQFHGHWDLOZLWKDYDLODEOHWLPH

.QRZZKLFKSHUVRQQHOVKRXOGKDYHDWWHQGHGWKHUHKHDUVDOEXWGLG
QRW(QVXUHWKH\UHFHLYHDQ\SODQFKDQJHVWKDWPD\KDYHFRPHIURPWKH
UHKHDUVDO

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
 ! 
(QVXUHDQ\SODQFKDQJHVDUHUHFHLYHGE\IODQNXQLWV

5HKHDUVH\RXUDFWLRQVEDVHGRQWKH&3IURPZKLFK\RXZLOOSHUIRUP
\RXUVXSSRUWDFWLRQVHJ6DVVLVWLQJWKH&RPPDQGHULQWKHILJKW
IRUZDUG

(QVXUHDOOUHKHDUVDODWWHQGHHVXQGHUVWDQGWKHHQHP\&RPPDQGHU¶V
RSHUDWLRQVFRQFHSWGHVLUHGHIIHFWVDQGLQWHQGHGHQGVWDWHEHIRUH
SUHVHQWLQJWKHHQHP\¶VUHDFWLRQWRWKHIULHQGO\RSHUDWLRQDOSODQ

+DYHWKH2325'ZLWK\RXGXULQJUHKHDUVDOVVRQRWHVPD\EHWDNHQ
DQGXSGDWHVUHFRUGHG

&RQVLGHUWKDW\RXPD\QHHGWRXSGDWHWKH2325''67DQG
V\QFKURQL]DWLRQPDWUL[DVDUHVXOWRIWKHUHKHDUVDO

2*$&8*4/% $<4$19 :

*HQHUDO

$QDIWHUDFWLRQUHYLHZ $$5 LVDSURIHVVLRQDOGLVFXVVLRQRIDQHYHQW
IRFXVHGRQSHUIRUPDQFHVWDQGDUGVWKDWHQDEOHV6ROGLHUVWRGLVFRYHUIRU
WKHPVHOYHVZKDWKDSSHQHGZK\LWKDSSHQHGDQGKRZWRVXVWDLQVWUHQJWKV
DQGLPSURYHRQZHDNQHVVHV,WLVDWRRO/HDGHUVDQGXQLWVFDQXVHWRJHW
PD[LPXPEHQHILWIURPHYHU\PLVVLRQRUWDVN 6RXUFH7UDLQLQJ&LUFXODU
7&  

7KH$$5SURYLGHV
ƒ &DQGLGLQVLJKWVLQWRVSHFLILFVROGLHUOHDGHUDQGXQLWVWUHQJWKVDQG
ZHDNQHVVHVIURPYDULRXVSHUVSHFWLYHV
ƒ )HHGEDFNDQGLQVLJKWFULWLFDOWREDWWOHIRFXVHGWUDLQLQJ
ƒ 'HWDLOVRIWHQODFNLQJLQHYDOXDWLRQUHSRUWVDORQH

.H\3RLQWVWR$GGUHVVLQ$$5V

ƒ &RQGXFWHGGXULQJRULPPHGLDWHO\DIWHUHDFKHYHQW
ƒ )RFXVRQLQWHQGHGWUDLQLQJREMHFWLYHV
ƒ )RFXVRQ6ROGLHU/HDGHUDQGXQLWSHUIRUPDQFH
ƒ ,QYROYHDOOSDUWLFLSDQWVLQWKHGLVFXVVLRQ
ƒ 8VHRSHQHQGHGTXHVWLRQV
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
 ! 
ƒ 5HODWHGWRVSHFLILFVWDQGDUGV
ƒ 'HWHUPLQHVWUHQJWKVDQGZHDNQHVVHV
ƒ /LQNSHUIRUPDQFHWRVXEVHTXHQWWUDLQLQJ

7KH$$5)RUPDW
ƒ ,QWURGXFWLRQDQGUXOHV
ƒ 5HYLHZRIWUDLQLQJREMHFWLYHV
ƒ &RPPDQGHU
VPLVVLRQDQGLQWHQW ZKDWZDVVXSSRVHGWRKDSSHQ 
ƒ 2SSRVLQJIRUFH 23)25 FRPPDQGHU
VPLVVLRQDQGLQWHQW ZKHQ
DSSURSULDWH 
ƒ 5HOHYDQWGRFWULQHDQG773V
ƒ 6XPPDU\RIUHFHQWHYHQWV ZKDWKDSSHQHG 
ƒ 'LVFXVVLRQRINH\LVVXHV ZK\LWKDSSHQHGDQGKRZWRLPSURYH 
ƒ 'LVFXVVLRQRIRSWLRQDOLVVXHV
ƒ 'LVFXVVLRQRIIRUFHSURWHFWLRQLVVXHV GLVFXVVHGWKURXJKRXW 
ƒ &ORVLQJFRPPHQWV VXPPDU\ 

7\SHVRI$$5V

ƒ )RUPDOUHYLHZV±
• +DYHH[WHUQDOREVHUYHUVFRQWUROOHUV 2& 
• 7DNHPRUHWLPH
• 8VHFRPSOH[WUDLQLQJDLGV
• $UHVFKHGXOHGEHIRUHKDQG
• $UHFRQGXFWHGZKHUHEHVWVXSSRUWHG
ƒ ,QIRUPDOUHYLHZV±
• &RQGXFWHGE\LQWHUQDOFKDLQRIFRPPDQG
• 7DNHOHVVWLPH
• 8VHVLPSOHWUDLQLQJDLGV
• $UHFRQGXFWHGZKHQQHHGHG
• $UHKHOGDWWKHWUDLQLQJVLWH

7KH$$53URFHVV

7KHDPRXQWDQGOHYHORIGHWDLOOHDGHUVQHHGGXULQJWKHSODQQLQJDQG
SUHSDUDWLRQSURFHVVGHSHQGVRQWKHW\SHRI$$5WKH\ZLOOFRQGXFWDQGRQ
DYDLODEOHUHVRXUFHV7KHQRUPDO$$5SURFHVVKDVIRXUVWHSV
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
 ! 
ƒ 6WHS±3ODQQLQJ
ƒ 6WHS±3UHSDULQJ
ƒ 6WHS±&RQGXFWLQJ
ƒ 6WHS±)ROORZLQJXS XVLQJ$$5UHVXOWV 

6WHS±3ODQQLQJ
ƒ 6HOHFWDQGWUDLQTXDOLILHGREVHUYHUFRQWUROOHUV 2& 
ƒ 5HYLHZWKHWUDLQLQJDQGHYDOXDWLRQSODQ$UP\7UDLQLQJDQG
(YDOXDWLRQ3URJUDP $57(3 PLVVLRQWUDLQLQJSODQV 073 DQG
6ROGLHUWUDLQLQJSXEOLFDWLRQV 673 
ƒ ,GHQWLI\ZKHQ$$5VZLOORFFXU
ƒ 'HWHUPLQHZKRZLOODWWHQG$$5V
ƒ 6HOHFWSRWHQWLDO$$5VLWHV
ƒ &KRRVHWUDLQLQJDLGV
ƒ 5HYLHZWKH$$5SODQ

6WHS±3UHSDULQJ
ƒ 5HYLHZWUDLQLQJREMHFWLYHVRUGHUVPLVVLRQHVVHQWLDOWDVNOLVW 0(7/ 
DQGGRFWULQH
ƒ ,GHQWLI\NH\HYHQWV2&VDUHWRREVHUYH
ƒ 2EVHUYHWKHWUDLQLQJDQGWDNHQRWHV
ƒ &ROOHFWREVHUYDWLRQVIURPRWKHU2&V
ƒ 2UJDQL]HREVHUYDWLRQV ,GHQWLI\NH\GLVFXVVLRQRUWHDFKLQJSRLQWV 
ƒ 5HFRQQRLWHUWKHVHOHFWHG$$5VLWH
ƒ 3UHSDUHWKH$$5VLWH
ƒ &RQGXFWUHKHDUVDO

6WHS±&RQGXFWLQJ
ƒ 6HHNPD[LPXPSDUWLFLSDWLRQ
ƒ 0DLQWDLQIRFXVRQWUDLQLQJREMHFWLYHV
ƒ &RQVWDQWO\UHYLHZWHDFKLQJSRLQWV
ƒ 5HFRUGNH\SRLQWV

6WHS±)ROORZLQJ8S
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
 ! 
ƒ ,GHQWLI\WDVNVUHTXLULQJUHWUDLQLQJ
ƒ )L[WKHSUREOHPUHWUDLQLPPHGLDWHO\623VLQWHJUDWHLQWRWXWRUV
WUDLQLQJSODQV
ƒ 8VHWRDVVLVWLQPDNLQJ&RPPDQGHU
VDVVHVVPHQW

6($./2
%+'+$3$%*9 
:

52()LJXUH


5HTXLUHPHQWV
2SHUDWLRQDO
3ROLF\
8&0-
*XLGDQFH
++4

7UDLQLQJ

7KUHDW
++4*XLGDQFH &OHDU(QJDJHPHQW
&'5V ,QWHQW &ULWHULD
*XLGDQFH (VWDEOLVK
'LVFLSOLQHG(IIHFWLYH
0LVVLRQ5407V DQG,PSOHPHQW 5HVSRQVH
2UGHUV3ODQV 5XOHVRI(QJDJHPHQW )RUFH3URWHFWLRQ
7DFWLFV:HDSRQV
9LRODWLRQV
8QLW3HUVRQQHO

&&,53,5



*HQHUDO

52(DUHGLUHFWLYHVLVVXHGE\FRPSHWHQWPLOLWDU\DXWKRULW\WKDWGHOLQHDWH
WKHFLUFXPVWDQFHVDQGOLPLWDWLRQVXQGHUZKLFK8QLWHG6WDWHVIRUFHVZLOO
LQLWLDWHDQGRUFRQWLQXHFRPEDWHQJDJHPHQWZLWKRWKHUIRUFHVHQFRXQWHUHG
)0 

52(VSHFLI\ZKHQZKHUHDJDLQVWZKRPDQGKRZXQLWVFDQDSSO\IRUFH
6RXUFH)06WDELOLW\2SHUDWLRQVDQG6XSSRUW2SHUDWLRQV 

(YHU\VWDIIRIILFHUVKRXOGEHIDPLOLDUZLWKWKHFXUUHQW52(

773Ź 52(DUHWKH&RPPDQGHU¶VUXOHVIRUWKHXVHRIIRUFH$VVXFK
WKH&RPPDQGHUPXVWLQWHUSUHWGUDIWGLVVHPLQDWHDQGWUDLQ
52(

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 ! 

52(SURYLGHVJXLGDQFHUHJDUGLQJWKHDSSOLFDWLRQRIIRUFHEDVHGRQWKUHH
DUHDVRIFRQVLGHUDWLRQ
ƒ 2SHUDWLRQDOUHTXLUHPHQWV52(DUHGUDIWHGLQVXFKDPDQQHUWKDWWKH\
VXSSRUWERWKPLVVLRQDFFRPSOLVKPHQWDQGIRUFHSURWHFWLRQ
ƒ 3ROLF\52(WKDWUHIOHFWWKHSROLWLFDOZLOORIWKHFLYLOLDQOHDGHUVKLSRI
WKH$UPHG)RUFHV
ƒ /DZ52(WKDWUHIOHFWGRPHVWLFDQGLQWHUQDWLRQDOODZ

&KDUDFWHULVWLFVRI(IIHFWLYH52(

ƒ 7DFWLFDOO\VRXQG FRXOGVKRXOGEHXVHGLQ&2$'HYHORSPHQW 
ƒ 8QGHUVWDQGDEOH ZULWWHQLQWHUPVWKDW6ROGLHUVFDQXQGHUVWDQG 
ƒ /HJDOO\VXIILFLHQW FRPSO\ZLWKGRPHVWLFDQGLQWHUQDWLRQDOODZ 
ƒ 5HVSRQVLYH GHYHORSPHQWDQGPRGLILFDWLRQUHVSRQVLYHWRFKDQJLQJ
PLVVLRQVDQGWKUHDW 

773Ź 52(PHWKRGRORJ\LVDQLPSRUWDQWFRQVLGHUDWLRQWKURXJKRXW
WKH0'03HVSHFLDOO\ZKHQHQJDJHGLQWDUJHWLQJ

3ULQFLSDO52(&RQVLGHUDWLRQV

ƒ ,QWHUQDWLRQDOODZ
ƒ 2SHUDWLRQDOFRQFHUQV PLVVLRQUHTXLUHPHQWV 
ƒ &RPPDQGHU¶V,QWHQW
ƒ 7KUHDW
ƒ 7DFWLFVDQGZHDSRQVV\VWHPVRUJDQLFWRWKHIRUFH
ƒ /HJDOUHTXLUHPHQWV KRVWQDWLRQ +1 GRPHVWLF 
ƒ 86SROLF\ FRQVLGHULQJ8QLWHG1DWLRQVUHVROXWLRQVDQGLQWHUQDWLRQDO
DJUHHPHQWV 

52(*XLGHOLQHV5$03DQG9(:35,.

)ROORZLQJLVVDPSOHJXLGDQFHWKDWPD\EHXVHIXO,WLVQRWLQWHQGHGDV
GRFWULQH

5$03
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
 ! 

6ROGLHUVPXVWEHFRPHIDPLOLDUZLWKWKHDSSOLFDWLRQRIIRUFH7RGD\¶V
PXOWLWXGHRIVFHQDULRVSODFHVRXU6ROGLHUVLQXQIDPLOLDUDQGRIWHQWLPHV
FRQIXVLQJVLWXDWLRQV:KHQIDFLQJDSRWHQWLDOWKUHDW6ROGLHUVPXVWH[HUFLVH
LQLWLDWLYHEXWZLWKUHVWUDLQW$Q\ZHDSRQVILUHLQVHOIGHIHQVHPXVWEH
GLVFLSOLQHGDQGDLPHGZKLOHUHPDLQLQJHIIHFWLYH7KHIROORZLQJIRXUUXOHV
PHPRUL]HGXVLQJWKHPHPRU\DLG³5$03´ DUHWKHEDVLFIRXQGDWLRQ
IRU52(³5$03´VWDQGVIRU³UHWXUQILUHZLWKDLPHGILUH´³DQWLFLSDWH
DWWDFN´³PHDVXUHWKHDPRXQWRIIRUFH\RXXVH´DQG³SURWHFWZLWKGHDGO\
IRUFH´7KHVHVKRXOGEHIROORZHGLQWKHDEVHQFHRIPRUHVSHFLILFJXLGDQFH
7KHIRXUUXOHVLQWHUORFNRQHUXOHGRHVQRWDSSO\WRWKHH[FOXVLRQRIWKH
RWKHUV7KHFKDLQRIFRPPDQGPD\VXSSOHPHQWRQHRUPRUHRIWKHVHUXOHV
WRSHUPLWDFFRPSOLVKPHQWRIDPLVVLRQ,QVXFKDFDVHWKHVHUXOHVVKRXOG
JXLGH\RXUMXGJPHQWRQO\WRWKHH[WHQWWKDWWKH\GRQRWFRQIOLFWZLWKWKH
LQVWUXFWLRQVRI\RXUFKDLQRIFRPPDQG

55HWXUQILUHZLWKDLPHGILUH5HWXUQIRUFHZLWKIRUFH<RXDOZD\V
KDYHWKHULJKWZKHQLQGDQJHUWRUHSHOKRVWLOHDFWVZLWKQHFHVVDU\IRUFH
³5HWXUQILUH´PHDQVWKDWLI\RXKDYHEHHQILUHGRQRURWKHUZLVHDWWDFNHG
\RXPD\GRZKDW\RXPXVWWRSURWHFW\RXUVHOIRUIHOORZ6ROGLHUV

$$QWLFLSDWHDWWDFN8VHIRUFHILUVWLIEXWRQO\LI\RXVHHFOHDU
LQGLFDWRUVRIKRVWLOHLQWHQW7KLVPHDQVWKDWVHOIGHIHQVHLVQRWOLPLWHGWR
UHWXUQLQJILUH6ROGLHUVGRQRWKDYHWRUHFHLYHWKHILUVWVKRWEHIRUHXVLQJ
IRUFHWRSURWHFWWKHPVHOYHVRUWKHOLYHVRIRWKHUV:KHQ6ROGLHUVLQLWLDWH
WKHXVHRIIRUFHWRGHIHQGWKHPVHOYHVWKH\XVHZKDWLVNQRZQDV
³DQWLFLSDWRU\´RU³SUHHPSWLYH´IRUFH'XULQJQRQFRPEDWRSHUDWLRQV
XQOHVVRUGHUHGRWKHUZLVH\RXPXVWXVHDQWLFLSDWRU\RUSUHHPSWLYHIRUFH
RQO\ZKHQ\RXIDFHDQLPPLQHQWWKUHDWRIDWWDFNDQGFDQLGHQWLI\RU
GHVFULEHWR\RXUVHOIFHUWDLQFOHDULQGLFDWRUVRIKRVWLOHLQWHQW'HWHUPLQH
ZKHWKHUVRPHRQH¶VLQWHQWLRQVDUHKRVWLOHE\FRQVLGHULQJWKHVDPHIDFWRUV
\RXXVHZKHQUHSRUWLQJHQHP\LQIRUPDWLRQWR\RXUOHDGHUXVLQJWKH
6$/87(IRUPDW
ƒ 6L]H+RZPDQ\LQGLYLGXDOVDUH\RXIDFLQJ"
ƒ $FWLYLW\:KDWLVKHGRLQJ"3RLQWLQJDZHDSRQ"
ƒ /RFDWLRQ,VKHZLWKLQVPDOODUPVUDQJH",QDSUHSDUHGILJKWLQJ
SRVLWLRQ"+DVKHHQWHUHGDUHVWULFWHGDUHD"
ƒ 8QLW,VKHZHDULQJDXQLIRUP"3DUWRIDQRUJDQL]HGDUPHGIRUFH"
ƒ 7LPH+RZVRRQEHIRUHKHLVXSRQ\RX"
ƒ (TXLSPHQW,VKHDUPHG",IVRZLWKZKDW":KDWLVWKHUDQJHDQG
OHWKDOLW\RIKLVZHDSRQ"
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
 ! 

00HDVXUHWKHDPRXQWRIIRUFHWKDW\RXXVHLIWLPHDQG
FLUFXPVWDQFHVSHUPLW8VHRQO\WKHDPRXQWRIIRUFHQHFHVVDU\WRSURWHFW
OLYHVDQGDFFRPSOLVKWKHPLVVLRQ$VD6ROGLHUDSURIHVVLRQDOLQWKHXVH
RIIRUFH\RXDUHH[SHFWHGWRDGMXVWWKHLQWHQVLW\PDJQLWXGHDQGGXUDWLRQ
RI\RXUIRUFHWRILWWKHVFDOHRIWKUHDWWKDW\RXIDFH([FHVVLYHIRUFH
HQGDQJHUVLQQRFHQWOLYHVDQGKLQGHUVPLVVLRQDFFRPSOLVKPHQW,ISRVVLEOH
DSSO\DJUDGXDWHGHVFDODWLRQRIIRUFHSDUWLFXODUO\ZKHQIDFLQJFLYLOLDQ
FURZGVWKDWDSSHDUWREHXQDUPHGEXWDOVRXQIULHQGO\

33URWHFWZLWKGHDGO\IRUFHRQO\KXPDQOLIHDQGSURSHUW\GHVLJQDWHG
E\\RXUFRPPDQGHU6WRSVKRUWRIGHDGO\IRUFHZKHQSURWHFWLQJRWKHU
SURSHUW\

:KHQKDQGOLQJSRWHQWLDOO\KRVWLOHVLWXDWLRQVXVHRQHRUPRUHRIWKH
HVFDODWLQJDFWLRQVOLVWHGEHORZ<RXPD\ILQGWKHIROORZLQJPHPRU\DLG
9(:35,. XVHIXOLQUHPHPEHULQJWKHVWHSV

9(:35,.
ƒ 9HUEDOZDUQLQJ7HOOSHUVRQ V LQWKHLUODQJXDJHLISRVVLEOHWR
GLVSHUVHVWD\DZD\RUKDOW
ƒ ([KLELWZHDSRQ6KRZ\RXUZHDSRQRUXVHVRPHRWKHUGLVSOD\WKDW
\RXKDYHVXSHULRUIRUFHDW\RXUGLVSRVDO
ƒ :DUQLQJVKRW6KRRWDZDUQLQJVKRWLIDXWKRUL]HG
ƒ 3HSSHUVSUD\6SUD\FD\HQQHSHSSHUVSUD\LIDXWKRUL]HGDQG
DYDLODEOHDQGWKHLQGLYLGXDOLVFORVHHQRXJK
ƒ 5LRWVWLFN6WULNHZLWKULRWVWLFNLIDXWKRUL]HGDQGDYDLODEOHDQGLIWKH
LQGLYLGXDOLVFORVHHQRXJK3RNHIOHVK\SDUWVRIWKHERG\ILUVWDUPV
DQGOHJVQH[WDQGLIQHFHVVDU\HVFDODWHWRVWULNLQJWKHKHDG
ƒ ,QMXUHZLWKILUH6KRRWWRZRXQG
ƒ .LOOZLWKILUH6KRRWWRNLOO


%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 !! 


2325'$QQH[( 5XOHVRI(QJDJHPHQW  )0 


$11(;( 58/(62)(1*$*(0(17 7223(5$7,2125'(512>FRGHQD PH @²


>L V V XL QJ KHDGTXDUWHUV@
6,78$7,21
D*HQHUDO'HVFULEHWKHJHQHUDOVLWXDWLRQDQWLFLSDWHGZKHQWKHRSHUDWLRQLVH[HFXWHG
3URYLGHDOOLQIRUPDWLRQQHHGHGIRULQVLJKWFRQFHUQLQJWKH52(
E(QHP\IRUFHV5HIHUWRDQQH[% ,QWHOOLJHQFH 'HVFULEHHQHP\FDSDELOLWLHVWDFWLFVWHFK
QLTXHVDQGSUREDEOH&2$VWKDWPD\DIIHFWH[LVWLQJRUSURSRVHG52(
F)ULHQGO\IRUFHV6WDWHLQVHSDUDWHVXESDUDJUDSKVWKHIULHQGO\IRUFHVWKDWUHTXLUHLQGLYLGXDO
52(IRUH[DPSOHDUP\DYLDWLRQ$OVRVWDWHWKH52(HDFK
G(QYLURQPHQW6WDWHDQ\52(WKDWKDVDSSOLFDELOLW\WRWKHFLYLOLDQSRSXODWLRQLQWKHDUHDRI
RSHUDWLRQV
G$VVXPSWLRQV/LVWDOODVVXPSWLRQVRQZKLFK52(DUHEDVHG
0,66,21
(;(&87,21
D&RQFHSWRIRSHUDWLRQV6XPPDUL]HWKHFRQFHSWRIRSHUDWLRQVDQGVWDWHWKHJHQHUDO
DSSOLFDWLRQRI52(LQVXSSRUWRILW,QGLFDWHWKHWLPHV KRXUVGD\VRUHYHQWV 52(DUHLQHIIHFW
E7DVNV3URYLGHJXLGDQFHIRU52(GHYHORSPHQWDQGDSSURYDOE\VXERUGLQDWHXQLWV
F&RRUGLQDWLQJ,QVWUXFWLRQV,QFOXGHWKHIROORZLQJDVDPLQLPXP
• &RRUGLQDWLRQ RI 52( ,QFOXGH UHTXLUHPHQWV IRU 52( FRRUGLQDWLRQ ZLWK DGMDFHQW
FRPPDQGV IULHQGO\ IRUFHV DSSURSULDWHIRUHLJQ IRUFHVWKLUG FRXQWULHV DSSURSULDWH FLYLOLDQ DJHQFLHV
DQG'HSDUWPHQWRI6WDWHHOHPHQWV
• 'LVVHPLQDWLRQRI52(
• 3URYLVLRQRI52(WRDXJPHQWDWLRQIRUFHVRIRWKHUFRPPDQGHUV
• 3URFHGXUHVIRUUHTXHVWLQJDQGSURFHVVLQJFKDQJHVWR52(
• 6SHFLDOUHSRUWVUHTXLUHPHQWV
6(59,&(6833257

&200$1'$1'6,*1$/5HIHUWRWKHDSSURSULDWHVHFWLRQRIDQQH[+ & 3URYLGHSHUWLQHQW


H[WUDFWVRILQIRUPDWLRQUHTXLUHGWRVXSSRUWWKHEDVLFSODQLQFOXGLQJ²
• ,GHQWLILFDWLRQIULHQGRUIRHRUQHXWUDO52(SROLF\
• 5HODWLRQRI52(WRXVHRIFRGHZRUGV
• *HRJUDSKLFERXQGDULHVRUFRQWUROPHDVXUHVZLWKLQZKLFK52(DSSO\
• 6SHFLDOV\VWHPVDQGSURFHGXUHVDSSOLFDEOHWR52(
$&.12:/('*( LIGLVWULEXWHGVHSDUDWHO\IURPEDVHRUGHU 

>$XW KH QWL F DW RU ¶ V ODVWQDPHDQGUDQN@


$33(1',;(652(
&DUG
',675,%87,21 LIGLVWULEXWHGVHSDUDWHO\IURPEDVHRUGHU 




%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 "" 

'**($ ),*)3

%DWWOH5K\WKP)LJXUH


6OHHS3ODQV
5HVWDQG

6KLIWV
7UDLQHG&3
/LQHV
1HVWHG7LPH

7$&623
&RQWLQXRXV236
++4%DWWOH
5K\WKP 6\QFKURQL]HG6WDII
(VWDEOLVK8QLW $FWLRQV
0LVVLRQ %DWWOH5K\WKP $VVHW'H&RQIOLFWLRQ
6XERUGLQDWH%DWWOH
5K\WKP
/HDGHUV

6WDII


*HQHUDO
7KHWHUPEDWWOHUK\WKPGHVFULEHVWKRVHHYHQWVWKDWDXQLWFRQGXFWVRQD
UHFXUULQJEDVLVWKDWIDFLOLWDWHVVHWWLQJWKHFRQGLWLRQVIRUVXFFHVV0DQ\
IDFWRUVKHOSGHWHUPLQHDQGHVWDEOLVKDXQLW
VEDWWOHUK\WKP6RPHRIWKHVH
IDFWRUVDUH\RXUXQLW
VVWDWHRIWUDLQLQJWKHEDWWOHUK\WKPRI\RXUKLJKHU
KHDGTXDUWHUVDQG\RXUFXUUHQWPLVVLRQ<RXUEDWWOHUK\WKPPXVWUHPDLQ
IOH[LEOH6RPHPLVVLRQVUHTXLUHPXFKPRUHWLPHDQGHIIRUWWRSODQDQG
SUHSDUHIRUWKDQRWKHUV$GGLWLRQDOO\\RXUEDWWOHUK\WKPFDQQRWEHVR
LQIOH[LEOHWKDW\RXIDLOWRUHDFWWRWDUJHWVRIRSSRUWXQLW\DVWKH\SUHVHQW
WKHPVHOYHVRQWKHEDWWOHILHOG
%DWWOHUK\WKPLVDPXOWLIDFHWHGFRQFHSWWKDWLQFOXGHVWKHIROORZLQJIRXU
HOHPHQWV
ƒ 3URFHVVHVDQG623V
ƒ 5HVWDQGVOHHSSODQV
ƒ 7UDLQHGVHFRQGDQGWKLUGOHDGHUVKLSHFKHORQVLQWKH&3
ƒ 1HVWHGWLPHOLQHV

773Ź $OOVWDIIRIILFHUVWRLQFOXGHWKH6VKRXOGEHIDPLOLDUZLWK
WKHXQLW¶VEDWWOHUK\WKPDQGKRZDQGZKHQWKH\FRQWULEXWHWR
LW HJFRPPXQLFDWLRQVQHWZRUNV 

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 " 
%DWWOH5K\WKP7HQHWV5HTXLUHPHQWVDQG&RQVLGHUDWLRQV

%DWWOH5K\WKP7HQHWV

ƒ 7KHKLJKHUXQLW¶VEDWWOHUK\WKPGULYHVWKHEDWWOHUK\WKPVRI
VXERUGLQDWHXQLWV
ƒ (YHQWVOLVWHGRQDSXEOLVKHGEDWWOHUK\WKPZLOOEHLQFRUSRUDWHG
LQWUDLQLQJ
ƒ $VPLVVLRQVFKDQJHVRZLOOWKHEDWWOHUK\WKP
ƒ 3XEOLVKWKHXQLWEDWWOHUK\WKPEHIRUHGHSOR\PHQWDQGEH
SUHSDUHGWRXSGDWHLWZLWKPLVVLRQFKDQJHV
ƒ 7KHXQLWEDWWOHUK\WKPKHOSVV\QFKURQL]HDQGGHFRQIOLFWDQ\
DVVHWVUHTXLUHGIRUPLVVLRQSODQQLQJDQGH[HFXWLRQDQGDVVLVWV
LQV\QFKURQL]LQJWKHXQLWVWDII
ƒ %DWWOHUK\WKPLVDJXLGH

%DWWOH5K\WKP5HTXLUHPHQWVDQG&RQVLGHUDWLRQV

 
ƒ 8QLWVZLOOUHIHUWRWKHLUEDWWOHUK\WKPWRDYRLGRYHUORRNLQJFULWLFDO
HYHQWVDQGWRPDLQWDLQIOH[LELOLW\WRWDNHDGYDQWDJHRIEDWWOHILHOG 
RSSRUWXQLWLHV 
ƒ /D\DIRXQGDWLRQIRUEDWWOHUK\WKPEHIRUHGHSOR\LQJ 
ƒ (QVXUHWKHVHFRQGDQGWKLUGHFKHORQVRI&3OHDGHUVKLSDUHZHOO 
WUDLQHG 
ƒ (VWDEOLVKSURFHVVHVDQG623VWKDWIDFLOLWDWHPDNLQJURXWLQHDFWLRQV 
URXWLQH 
ƒ +DYHVWDQGDUG&3623VGULOOVDQGEULHILQJV 
ƒ 3HUIRUPSDUDOOHOSODQQLQJQRWVHTXHQWLDOSODQQLQJ 
ƒ :LWKRXWDQHVWDEOLVKHGEDWWOHUK\WKPXQLWVWHQGWRUHDFKDSRLQWRI 
GLPLQLVKLQJUHWXUQVEHWZHHQ±KRXUVRIRSHUDWLRQOHDGHU 
IDWLJXHVHWVLQLQIRUPDWLRQIORZLVDIIHFWHGSODQQLQJSURFHGXUHVDUH
RYHUORRNHGDQGJHQHUDOWDVNH[HFXWLRQVXIIHUV 
ƒ 6\PSWRPVWRORRNIRU 
• 'LVMRLQWHGWLPHOLQHVEHWZHHQYDULRXVOHYHOVRIFRPPDQG 
• /HDGHUIDWLJXH 
• /HDGHUVZKRDUHQRWIXOO\DZDUHRIFULWLFDO'3V
• /HDGHUVZKRDUHQRWDYDLODEOHDWFULWLFDO'3V 
• 8QQHFHVVDU\IULFWLRQ 
ƒ (VWDEOLVKWLPHIUDPHVIRUWKHRSHUDWLRQWKDWHQVXUHVH[WHQGHG 
FRQWLQXRXVRSHUDWLRQV 
ƒ 1HVWLQJ LQWHJUDWLQJDQGV\QFKURQL]LQJ WKH&RPPDQGHU¶V,QWHQW 
KLJKHUDQGORZHULVFULWLFDO

ƒ %17)UHKHDUVDOVZLOOQRWFRQIOLFWZLWKLPSRUWDQWFRPSDQ\OHYHO 
DFWLYLWLHVLQWKHLULQWHUQDOWLPHOLQH


%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
 " 
7KHIROORZLQJDUHH[DPSOHVRIDJHQHULFDQGDQ6VSHFLILF%1EDWWOH
UK\WKP

6DPSOH*HQHULF%DWWOH5K\WKP

7,0( %$77$/,21 &203$1< 3/$7221 
 67$))(67,0$7(6 (;(&87,21 (;(&87,21

 6+,)7  
&+$1*(%8% 
    
 &21)(5(1&(
&$//:%'(
  
5(&(,9( 
*8,'$1&(
 &21)(5(1&( &21)&$//:%1 

&$//:&2 
,668(*8,'$1&(
 67$))+8''/(  

&'5 
%$77/(),(/'
&,5&8/$7,21 
    
 5(&(,9()5$*2
,668(:$5125'
5(&(,9(
:$5125'
 
 7'037$5*(7,1* ,668( 5(&(,9( 
0*7 :$5125' :$5125' 
 25'(535(3 7/3 7/3
 ,668()5$*2 5(&(,9( 

1(;7+56  )5$*2 
 %$&.%5,()72
%'(&'5
,668(
:$5125'
5(&(,9(
:$5125'

67$))+8''/( 
,1,7,$7(5(&21
 /2*3$& /2*3$& 5(&(,9(

67$))(67,0$7(6 ,668()5$*2 )5$*2 
 6+,)7
&+$1*(%8%
  
 &2&'5 %$&.%5,()72 

%$&.%5,() %1&'5 
  5(+($56$/6 5(+($56$/6

 67$))+8''/( 75223 75223
,17(//83'$7( 029(0(17 029(0(17 
    
  (;(&87,2135(3 (;(&87,2135(3

   
   

 67$))+8''/(   
,17(//83'$7( 
   
   




%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 " 

6DPSOH%16%DWWOH5K\WKP

7,0( 0 7 : 7+ ) 6$ 68

 &RPPXQLFDWLRQV&KHFNV

 %16KLIW&KDQJH

 66KLIW&KDQJH%ULHI

 &RPPXQLFDWLRQV&KHFNV

 672&&LUFXODWLRQ61&2,&&RPSDQ\&3V FLUFXODWLRQDQGVSRWFKHFNV


 &RPPXQLFDWLRQV&KHFNV

 6&RQIHUHQFH&DOO
 63XEOLVKHV6LJQDODQG&3LQIRUPDWLRQLQ'DLO\)5$*2
 &RPPXQLFDWLRQV&KHFNV

 %16KLIW&KDQJH
 66KLIW&KDQJH%ULHI

 &RPPXQLFDWLRQV&KHFNV

 6HUYHU%DFNXS&RPPXQLFDWLRQV&KHFNV*HQHUDWRU0DLQWHQDQFH



6DPSOH%166KLIW&KDQJH%ULHI$JHQGD

6LJQLILFDQW(YHQWVLQ%1KRXUV
1HWZRUN0DQDJHPHQW
1HWZRUN6WDWXV± ODVW1H[W5)2V
5HSRUWV6FKHGXOHG2XWDJHV
&RPEDW1HW5DGLR VWDWXV
6LJQDO&RPSDQ\
6LJQLILFDQW(YHQWV
6FKHGXOHG0DLQWHQDQFH
3HUVRQQHO,VVXHV
6LJQDO6\VWHPV,QWHJUDWLRQ
7URXEOH7LFNHW3URMHFWV6WDWXV
3ULRULW\RI7URXEOH7LFNHWV3URMHFWV
,QIRUPDWLRQ$VVXUDQFH
&206(&
)LHOG6HUYLFH5HSV FRQWUDFWRUV"
8QLW,VVXHV
$GPLQLVWUDWLYH1RWHV
'HFLVLRQPDNHUVPXVWEHSUHVHQWDW6KLIW&KDQJH%ULHI


%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
 " 

'**($&'804%+

%DWWOH7UDFNLQJ*UDSKLF


%DWWOH5K\WKP

*XLGDQFH

7$&623

'RFWULQH
&23 )5$*2V
6,75(3V :$512V
0HVVDJHV537V 6$
2UGHUV &RQGXFW%DWWOH 8SGDWHG)RUFH
(QHP\)ULHQGO\ 7UDFNLQJ 6WDWXV
/RFDWLRQV )6&0V
$VVHW6WDWXV $GYLFHDQG
&&,53,5 5HFRPPHQGDWLRQV
%DWWOH&DSWDLQ

&RPPDQGHU

6WDII



*HQHUDO

ƒ 0DQDJLQJLQIRUPDWLRQZLWKLQWKH&372&GLUHFWO\DIIHFWVDXQLW¶V
DELOLW\WRWUDFNFRPEDWRSHUDWLRQV
ƒ %DWWOHWUDFNLQJLQYROYHV
• 0RQLWRULQJORFDWLRQVDFWLYLWLHVDQGFRPEDWSRZHURI
IULHQGO\DQGHQHP\HOHPHQWV
• &RPSDULQJSODQQHGRUDGMXVWHGDFWLYLWLHVWRUHSRUWHGDFWLRQV
• 0RQLWRULQJWKHSURJUHVVRIDGMDFHQWDQGVXSSRUWLQJXQLWV
• 8SGDWLQJWHPSODWHV
• 0DLQWDLQLQJDQGPRQLWRULQJWKHRSHUDWLRQVPDSDGMDFHQWXQLW
DFWLYLWLHVDQGVWDWXVFKDUWV

&RPPDQGHU,QIRUPDWLRQ1HHGV

ƒ 7KH%1&RPPDQGHUKDVVHYHQLQIRUPDWLRQQHHGVWKDWPXVWEHPHWLQ
WKHFRPPDQGSRVW
• )ULHQGO\ORFDWLRQV
• &XUUHQWHQHP\VLWXDWLRQ,65

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 " 
• 5XQQLQJHVWLPDWH FRPEDWSRZHU&&,5VWDII
HVWLPDWHV 
• *UDSKLFFRQWUROPHDVXUHV
• )5$*2V
• &RPPDQGHU¶VVLWXDWLRQUHSRUWV 6,75(3 
• )LUHVXSSRUWFRRUGLQDWLRQPHDVXUHV

773Ź • 'HYHORSDWUDFNLQJV\VWHPWKHQXVHLWPDNHVXUHDOO
72&SHUVRQQHOXQGHUVWDQGWKHV\VWHPDQGSDUWLFLSDWH
• 'HYHORSVWDQGDUGWUDFNLQJFKDUWVDQGRYHUOD\V
• ,GHQWLI\DQGSULRULWL]HLWHPVWREHWUDFNHG
• 7UDFNIULHQGO\DQGWKUHDWXQLWVXVHFRORUFRGLQJ
• .HHSWKHQRLVHGRZQDQGUHVWULFW72&DFFHVV
• 'RQRWDOORZDEDFNORJRIPHVVDJHV
• (VWDEOLVKDQGIROORZSURFHGXUHVIRUEDWWOHWUDFNLQJGXULQJ
GLVSODFHPHQWRSHUDWLRQV
%1&RPPDQGHU¶V+DQGERRN86$:&

([DPSOH7UDFNLQJ&KDUWV

7KHIROORZLQJFKDUWVZKLOHQRWDOOLQFOXVLYHDUHRIIHUHGIRUFRQVLGHUDWLRQ
LQWUDFNLQJDQGPDQDJLQJWKHIORZRIQHFHVVDU\LQIRUPDWLRQ

++40LVVLRQDQG,QWHQW)RUPDW

BBBBBBBBBBBBBB0,66,21
KLJKHU 





BBBBBBBBBBBBB&200$1'(5¶6,17(17
KLJKHU









$62)BBBBBBBBBB 


%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 " 

&ULWLFDO,QIRUPDWLRQ&KDUW
&&,5 $62)BBBBBBBB


3,5






((), 




)),5







.H\(YHQW$FWLRQ)RUPDW

 .(<(9(176$&7,216/$67+2856 5),V72',9,6,21 













127(6



$62)BBBBBBBBBB 


%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 " 

&RPEDW3RZHU)RUPDW


&20%$732:(5
81,7 0BB 0BB ())(&7,9(1(66 67$786

7)BBBBB


7)BBBBB 

7)BBBBB

7)BBBBB 

81,7 0$ ())(&7,9(1(66 67$786 
BBBBB)$ 

BBBBB)$ 
$62)BBBBBBBBBB



7DVN2UJDQL]DWLRQ)RUPDW

 7$6.25*$1,=$7,21 
BBBBB7)%1 BBBBB7)%1 BBBBB7)%1 BBBBB7)%1 










%5,*$'( 




$62)BBBBBBBBBBBB


%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 "  

:HDSRQV&RQWURO6WDWXV&KDUW

:($3216&21752/67$786 $62)BBBBBBBB 

$'::&6 :($3216)5(( :($32167,*+7 :($3216+2/' 
5(' 
<(//2:


:+,7( 


:($3216&21752/67$786 

0233/(9(/ &855(1767$786

0233 
0233 
0233 
0233


0233



8QLW/RFDWLRQV)RUPDW

81,7/2&$7,216 
BBBBB7)%1 BBBBB7)%1 BBBBB7)%1 BBBBB7)%1 
72& 72& 72& 72& 
BBBBBB BBBBBB BBBBBB BBBBBB 
BBBBBB BBBBBB BBBBBB BBBBBB 
BBBBBB BBBBBB BBBBBB BBBBBB 
BBBBBB BBBBBB BBBBBB BBBBBB 
BBBBBB BBBBBB BBBBBB BBBBBB 
BBBBBB BBBBBB BBBBBB BBBBBB 
BBBBBB BBBBBB BBBBBB BBBBBB


%'(0$,1 )$%172& ',90$,1 
%'(7$& 4 ',97$& 
%'(5($5 BBB%75< BBBBBBBB

6(1/(1 BBB%75< BBBBBBBB

5(75$,16 BBB%75< BBBBBBBB

$62)BBBBBBBBBBBB


%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 "! 

$VVHWV$YDLODEOH)RUPDW

$66(76$9$,/$%/( $62)BBBBBBBBBB 
$66(7 $66,*1(' )0& 10&'(6752<(' 
0BB 
0BB 
,1)64'
0&%52//(5

0257$5 
6&2876 
0BB 
675,.(5
4

6$33(564' 
0,&/,& 
$9/%
$&(

92/&$12 
'2=(5 
%)69 
$9(1*(5
0$13$'

/(16(1 
*65 


/LJKWDQG:HDWKHU'DWD)RUPDW

 /,*+7'$7$ 
'$7(%01765((1766 0506,//80 





$62)BBBBBBBBBBBB


:($7+(5
'$7(+,*+/2::,1'63(('9,6,%,/,7<35(&,3 &/28'+80,',7<

7(03 ',5 &29(5 








%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 " 

5RXWH6WDWXV)RUPDW
 5287(67$786 
5287( 67$786 /2&$7,21 /2&$7,217<3( $66,*1(' (67,0$7('

2)7&3 V 2)'$0$*( $66(76)25
5(3$,5
7,0(725(3$,5 













$62)BBBBBBBBBBBB


&ODVVHVRI6XSSO\


&/$66(62)6833/<

&/$66 &855(17 352-(&7(' &5,7,&$/6+257$*(6


6833/< 67$786 '26 67$786 '26 &21&(516

,
,,
,,,
,,, 3

,9
9
9,
9,,
9,,,
,;
27+(5

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

773Ź ƒ &KDUWVXVHGGXULQJWKHSODQQLQJSURFHVV
VLJQLILFDQWO\UHGXFHEULHILQJWLPH
ƒ %XLOGDER[WRVWRUHDQGWUDQVSRUWFKDUWV
ƒ .HHSDPLQLDWXUHYHUVLRQRIDOOFKDUWVLQD
QRWHERRN)DFLOLWDWHVXSGDWLQJZKLOHRQWKHPRYH
RIIHQVLYH
ƒ &KDUWVL]HVKRXOGFRLQFLGHZLWK72&DQG
&RPPDQGHUYLVXDOQHHGV
ƒ 8VH72&FKDUWVGXULQJWUDLQLQJWRGHWHUPLQH
HIIHFWLYHQHVVDQGQHHGIRUFKDQJH
ƒ 3URWHFWFKDUWVZLWKKHDY\DFHWDWHHGJHGZLWKWDSH
9HOFURVWULSVDVVLVWLQKDQJLQJ
ƒ &RQGXFW$$5RQ\RXUWUDFNLQJV\VWHPV

7KH6DQG66HFWLRQVKRXOGGHYHORSFKDUWVDQGWRROVIRUWUDFNLQJ&
VSHFLILFDVVHWVDQGSHUVRQQHO7KHVHVKRXOGEHLQFOXGHGLQWKHXQLW
7$&623












 7KLVSRUWLRQOHIWEODQNLQWHQWLRQDOO\











%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

#  =

*HQHUDO

7KHIRFXVRI3DUW7ZRRIWKLVJXLGHLVWRIXUWKHULQIRUPWKH%16RI
LQIRUPDWLRQQHHGHGE\WKHLU%1FRPPDQGHUVDQGVWDIIVRQKRZ$%&6
V\VWHPVFDQDVVLVWWKHPLQWKHH[HFXWLRQRIEDWWOHVWDIIWDVNVZLWKVSHFLDO
HPSKDVLVRQSODQQLQJXVLQJWKH0'03GLJLWDO72&FRQILJXUDWLRQDQG
FULWLFDOLQIRUPDWLRQIORZDQGFRPPDQGDQGVWDIIGXWLHVDQG
UHVSRQVLELOLWLHV

$%&6LQWHJUDWHVWKH&V\VWHPVIRXQGDWHDFKHFKHORQIURP$UP\
6HUYLFHFRPSRQHQWFRPPDQGHUVDWWKHWKHDWHURUMRLQWWDVNIRUFHOHYHOWR
WKHLQGLYLGXDO6ROGLHURUZHDSRQVSODWIRUP7KHFXUUHQWVXLWHRIV\VWHPV
YHUVLRQVXSSRUWVFRPPDQGHUVDQGVWDIIVLQIRXUSULQFLSDODUHDV
QHWZRUNLQJFDSDELOLWLHV&23GLVSOD\FROODERUDWLYHSODQQLQJFDSDELOLWLHV
DQGGHFLVLRQPDNLQJHQKDQFHPHQWV:LWKLQWKHVHIRXUDUHDVVRPHRIWKH
NH\REMHFWLYHVDUH
ƒ ,QWHJUDWH)%&%%OXH)RUFH7UDFNHU %)7 DQG&GDWDWRRWKHU
GLJLWDOV\VWHPV
ƒ ,PSURYHQHWZRUNLQJ&23GLVSOD\FROODERUDWLYHSODQQLQJDQG
GHFLVLRQPDNLQJDFURVVFRPPDQGHFKHORQV 7KH%DWWOH&RPPDQG
6HUYHU %&6 LVDVVRFLDWHGZLWKWKLVSXUSRVH 
ƒ ,QWHJUDWHQHDUUHDOWLPHVLWXDWLRQDOLQIRUPDWLRQDQGVHQVRUGDWDDQG
QHDUUHDOWLPHDFFHVVIRUEXLOGLQJRIWKH&23E\DFRPPDQGHUDQG
VWDII
ƒ 6XSSRUWWKHPLVVLRQE\LQWHJUDWLQJDXWRPDWLRQV\VWHPVDQG
FRPPXQLFDWLRQVWRIXQFWLRQDOO\OLQNVWUDWHJLFDQGWDFWLFDO+4
ƒ 6WULYHWRRSHUDWHLQDMRLQWHQYLURQPHQWWKURXJKYHUWLFDODQGKRUL]RQWDO
LQWHJUDWLRQDWWDFWLFDODQGRSHUDWLRQDOOHYHOV
ƒ ,QLWLDWHD³2QH6\VWHP2QH$UFKLWHFWXUH´FRQVWUXFWWKURXJKD
PHDVXUHGFRQYHUJHQFHRIVWRYHSLSHV\VWHPV

,WZLOOEHVHYHUDO\HDUVEHIRUHWKHPDMRULW\RIWKH$UP\ DFWLYHFRPSRQHQW
$& UHVHUYHFRPSRQHQW 5& LVIXOO\HTXLSSHGZLWK$%&6(YHQWKHQ
WKH%1PD\KDYHWRRSHUDWHZLWKRXWIXOOILHOGLQJRIGLJLWDOHTXLSPHQW
HVSHFLDOO\LQMRLQWRUFRDOLWLRQHQYLURQPHQWV

$51*%1V$UP\5HVHUYHXQLWVDQGDVVRFLDWHGVXSSRUWXQLWVZLOO
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
FRQWLQXHWREHWKHPRVWOLNHO\W\SHVRIDQDORJXQLWVEXWSODQQLQJIRU
GLJLWL]DWLRQDQGGHYHORSLQJSURFHGXUHVLQWHJUDWLQJGLJLWDOZLWKDQDORJDUH
HVVHQWLDOIRUWKHLUVXFFHVV

7KH%16ZLOOHQFRXQWHUIRUQRZ

ƒ &15DVWKHSULPDU\FRPPXQLFDWLRQVPHGLDIRUDQDORJXQLWV+DUG
FRS\RUGHUVDQGJUDSKLFVDUHVWLOOUHTXLUHG*UDSKLFDOFRQWUROPHDVXUHV
DWDKLJKOHYHORIGHWDLODUHLPSHUDWLYHDQGDVVLVWDQFHIURPGLJLWDOO\
HTXLSSHG/12WHDPVLVQHFHVVDU\

ƒ $VWKHLQWHJUDWLRQRIGLJLWDOV\VWHPVRFFXUVWKH%1VWDIIZLOOLQ
HVVHQFHKDYHWZRFRQWUROV\VWHPV DQDORJDQGGLJLWDO WKDWPXVWEHLQ
RSHUDWLRQWRNHHSKLJKHUDGMDFHQWDQGVXERUGLQDWHXQLWVLQIRUPHGRI
DOOSHUWLQHQWRSHUDWLRQDOLQIRUPDWLRQ

ƒ %1FRPPDQGHUVDQGVWDIIVLIHTXLSSHGZLWK$%&6V\VWHPVZLOOEH
XVLQJWKH0&6$6$6DQG$)$7'6)%&%ZLOOVHUYHDVWKH
³ERWWRPXSIHHG´IURPVXERUGLQDWHHOHPHQWV,WLVSRVVLEOHWKDWWKH
%DWWOH&RPPDQG6XVWDLQPHQW6XSSRUW6\VWHP %&6 ZLOOEH
DYDLODEOHWRDVVLVWZLWK%1ORJLVWLFVSODQQLQJDQGH[HFXWLRQEXW%&6
LVQRUPDOO\IRXQGDWWKH%'(






 7KLVSRUWLRQOHIWEODQNLQWHQWLRQDOO\


%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  
7KHIROORZLQJJUDSKLFGHSLFWVWKHEDVLF$%&6OLQNDJHDUFKLWHFWXUH
IURP%1WRGLYLVLRQ

%DVLF$%&6$UFKLWHFWXUH



)RXQGDW
'LYLVLRQDQG
%DVLF$%&6$UFKLWHFWXUH
$ERYH
%ULJDGHDQG%DWWDOLRQ
*&&6$

&3&

-RLQW
%ULJDGHDQG%DWWDOLRQ
%&60&66HUYHU
)%&%
*DWHZD\
0DQDJHU %&6

0&6
1576
$0':6

'766
3$66

7$,6

$6$6 ,0(76
$)$7'6

%DWWDOLRQOHYHO6\VWHP %ULJDGHOHYHO6\VWHP
/(*(1'
*&&6$*OREDO&RPPDQGDQG&RQWURO 6\VWHP$UP\ ,0(76,QWHJUDWHG0HWHRURO RJLFDO6\V WHP
&3&&RPPDQGDQG&RQWURO 3H UVRQDO&RPSXWHU 3$66±3XEOLVKDQG6XEVFULEH6HUYLFHV
)%&%)RUFH;;%DWWOH&RPPDQG%ULJDGHDQG%HORZ $)$7'6±$GYDQFHG)LHOG$UWLOOHU\7DFWLFDO'DWD6\VWHP 
0&60DQHXYHU&RQWURO6\VWHP $0':6±$L UDQG0LVVLOH'H IHQVH:RUNVWDWL RQ
'766'LJLWDO7RSRJUDSKL F6XSSRUW6\VWHP %&6%DWWOH&RPPDQG6XVWDLQPHQW6XSSRUW6\VWHP
$6$6$OO6RXUFH $QDO\VLV6\V WHP



6HFWLRQ±%DWWOH&RPPDQGDQG$%&6'XWLHVDQG
5HVSRQVLELOLWLHV

$%$&'(

7KHSXUSRVHRIWKLVVHFWLRQLVWRDFTXDLQWWKH6ZLWKWKHGXWLHVDQG
UHVSRQVLELOLWLHVRIWKH%1&RPPDQGHUDQGKLVEDWWOHVWDIIZLWKLQWKHGLJLWDO
72&7KHVWDIIIXQFWLRQVGHVFULEHGLQ)0GRQRWFKDQJH
IXQGDPHQWDOO\LQD&3HPSOR\LQJDVXLWHRI$%&6V\VWHPV:KDWLV
GLVVLPLODUKRZHYHULVWKDWFRPPDQGDQGVWDIIIXQFWLRQVDUHH[HFXWHG
GLIIHUHQWO\XVLQJWKHGLJLWDOWRROVWKDW$%&6SURYLGHV:KLOHWKHIROORZLQJ
OLVWRIGXWLHVDQGUHVSRQVLELOLWLHVLVQRWDOOHQFRPSDVVLQJLWGRHVSURYLGH
LQVLJKWUHJDUGLQJQHZIXQFWLRQVWKDWGLJLWL]DWLRQZLOOUHTXLUHDQGWKDWWKH6

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  
PD\QHHGWRVXSSRUW7KH&RPPDQGHUDQGEDWWOHVWDIISHUIRUPWKHVH
GLJLWDO&3WDVNVLQDGGLWLRQWRDQGDVDSDUWRIVWDQGDUGVWDII
UHVSRQVLELOLWLHV%16RIILFHUVDUHHQFRXUDJHGWRFRPSDUHWKHVHGXWLHV
DQGUHVSRQVLELOLWLHVZLWKWKHFULWLFDOWDVNVOLVWHGLQWKHGLJLWDO72&WDVN
LQWHJUDWLRQVHFWLRQ 6HFWLRQ DQGZLWKWKHP\ULDGUHTXLUHGZLWKLQKLV
:))

%1%DWWOH6WDII$%&6'XWLHVDQG5HVSRQVLELOLWLHV
ƒ &RPPDQGHU
• 3URYLGHVFRPPDQGJXLGDQFHIRUHPSOR\LQJ$%&6
• 3URYLGHV&RIDXWRPDWLRQUHVRXUFHV
• (VWDEOLVKHVDXWRPDWLRQVXSSRUWSULRULWLHV
• 6SHFLILHVWKHXQLW¶V&23
• (VWDEOLVKHVWKH&&,5DQGHQVXUHVWKH\DUHLQFOXGHGLQWKH
$%&6
• (QVXUHVVXERUGLQDWHOHDGHUVDUHWUDLQHGLQWKHHPSOR\PHQW
RSHUDWLRQDQGVXVWDLQPHQWRIDXWRPDWLRQ
• 7UDLQVVXERUGLQDWHOHDGHUVDQGVWDIIWRFUHDWHPDLQWDLQ
GLVWULEXWHDQGXVHWKH&23

ƒ ([HFXWLYH2IILFHU
• &RRUGLQDWHVWKHVWDIIWRHQVXUH$%&6LQWHJUDWLRQDFURVVDOO
DXWRPDWHGV\VWHPVDQGDXWRPDWLRQVXSSRUW
• (QVXUHVWKHVWDIILQWHJUDWHVDQGFRRUGLQDWHVLWV$%&6
DFWLYLWLHVLQWHUQDOO\YHUWLFDOO\ ZLWK++4DQGVXERUGLQDWH
XQLWV DQGKRUL]RQWDOO\ ZLWKDGMDFHQWXQLWV 
• 0DQDJHVWKH&&,5HQVXUHVIXOILOOPHQWRIWKH&&,5
• 'LUHFWVWKHFUHDWLRQDQGGLVWULEXWLRQRIWKH&23WRLQFOXGH
SURFHGXUHVIRUXSGDWLQJHQHP\DQGIULHQGO\68
• 0RQLWRUVWKHLQIRUPDWLRQILOWHUVFROOHFWLRQSODQVDQG
QHWZRUNVWKDWGLVWULEXWHWKH&23
• &RRUGLQDWHVWKHVWDIIWRHQVXUHDXWRPDWLRQVXSSRUW
• 6XSHUYLVHVWKH0DLQ&3DQG+4&HOOGLUHFWO\LQFOXGLQJ
GLVSODFHPHQWSURWHFWLRQVHFXULW\DQGFRPPXQLFDWLRQV
• 0RQLWRUVOLDLVRQWHDPVZLWKDQDORJ QRQGLJLWL]HG XQLWVDQG
MRLQWDOOLHGIRUFHVIRUWKHLUFRQWULEXWLRQWRWKH&23
ƒ 6
• 0DLQWDLQVUHVSRQVLELOLW\IRUSHUVRQQHOIXQFWLRQVRI%&6
%'(DQGKLJKHU 
• (PSOR\V%&6WRPRQLWRUDQGUHSRUWRQSHUVRQQHOUHODWHG
IXQFWLRQV
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
• 0DQDJHVH0,/32
ƒ 6
• 6WDIISURSRQHQWIRU$6$6/LJKW $6$6/ DQGZHDWKHU
HIIHFWV
• 6XSHUYLVHV$6$6DQG,QWHJUDWHG0HWHRURORJLFDO6\VWHP
,0(76 RSHUDWLRQVDQGVXSSRUW
• 3URYLGHVJXLGDQFHRQHPSOR\PHQWDQGVXSSRUWRI$6$6/
DQGZHDWKHUHIIHFWV
• 6XSHUYLVHVWKHLQIRUPDWLRQVHFXULW\SURJUDPHYDOXDWHV
VHFXULW\YXOQHUDELOLWLHV
• $VVLVWVWKH6WRLPSOHPHQWDQGHQIRUFH/$1VHFXULW\
SROLFLHV
• 3URYLGHVVRIWZDUHDSSOLFDWLRQH[SHUWLVHRQSURSRQHQW
V\VWHPV
ƒ 6
• 6WDIISURSRQHQWIRU0&6$)$7'6$LUDQG0LVVLOH'HIHQVH
:RUNVWDWLRQ $0':6 DQG)%&%
• 3ODQVLQWHJUDWHVDQGHPSOR\V$%&6
• 'HYHORSVWKH$%&6DQQH[IRUSODQVDQGRUGHUV
• 'HYHORSV$%&6DQQH[HVIRULQFOXVLRQLQWKHJDUULVRQDQG
WDFWLFDO623V
• 2YHUVHHVRIIHQVLYHLQIRUPDWLRQRSHUDWLRQV ,2 DQGGHIHQVLYH
,2
• 3URYLGHVRSHUDWLRQDODQGVXSSRUWJXLGDQFHUHJDUGLQJQHWZRUN
HPSOR\PHQWWRVXERUGLQDWHXQLWV
• &UHDWHVPDLQWDLQVDQGGLVSOD\VWKH&23PDLQWDLQV68RIDOO
XQLWV
• &RRUGLQDWHVZLWK6IRUFRPPXQLFDWLRQVFRQQHFWLYLW\LQ
VXSSRUWRI$%&6
• 3ODQVDQGPRQLWRUVRSHUDWRUGLJLWDOVXVWDLQPHQWWUDLQLQJ
• 3URYLGHVVRIWZDUHDSSOLFDWLRQH[SHUWLVHRQSURSRQHQW
V\VWHPV
• $VVLJQV/12DQGFRRUGLQDWHVWKHLUGLJLWDOVXSSRUW
ƒ 6
• 6WDIISURSRQHQWIRU%&6
• 6XSHUYLVHV%&6RSHUDWLRQVDQGVXSSRUW
• 3URYLGHVJXLGDQFHRQHPSOR\PHQWDQGVXSSRUWRI%&6
• (PSOR\V%&6WRPRQLWRULQSXWORJLVWLFVIXQFWLRQV
• 0RQLWRUVDQGUHSRUWVRQWKHVWDWXVRIDOODXWRPDWLRQ
HTXLSPHQW

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  
• 3URYLGHVVRIWZDUHDSSOLFDWLRQH[SHUWLVHRQSURSRQHQW
V\VWHPV
ƒ 6
• 6HUYHVDVVLJQDOVXEMHFWPDWWHUH[SHUW 60( WRWKH
FRPPDQGHUDGYLVHVWKH&RPPDQGHUDQGVWDIIRQDOOVLJQDO
VXSSRUWPDWWHUV
• (VWDEOLVKHVWKHQHWZRUN
• 0RQLWRUV:$1SHUIRUPDQFHLQWHJUDWHVWKH&3/$1
• (VWDEOLVKHVDQGPDLQWDLQV/$9$FRPSOLDQWQHWZRUNV\VWHP
SROLFLHV
• 0DLQWDLQVUHVSRQVLELOLW\IRUDOODXWRPDWLRQ,1)26<6
DXWRPDWLRQDQGQHWZRUNPDQDJHPHQWDQGLQIRUPDWLRQ
SURWHFWLRQ
• (QVXUHVFRQVLVWHQF\DQGFRPSDWLELOLW\RIDXWRPDWLRQ
V\VWHPV
• 0DQDJHVWKHQHWZRUNVUHVSRQVLEOHIRUQHWZRUNHPSOR\PHQW
QHWZRUNFRQILJXUDWLRQDQGQHWZRUNVWDWXVPRQLWRULQJDQG
UHSRUWLQJ
• 0DLQWDLQVFORVHFRRUGLQDWLRQZLWKWKH6WRGHWHUPLQHZKLFK
LQGLYLGXDOVXVHZKLFKUROHV
• &UHDWHVWKHFXWVKHHWLQFRQMXQFWLRQZLWKWKH6
• 5HFHLYHVSODQQLQJZRUNVKHHWVZLWK/$1:$1
UHTXLUHPHQWV
• (QVXUHVXQLWLQIRUPDWLRQQHWZRUNFRQQHFWLYLW\EHWZHHQXQLW
DQGKLJKHUORZHUHFKHORQV
• 3ODQVFRRUGLQDWHVDQGPDQDJHVQHWZRUNWHUPLQDOV
• 'HYHORSVPRGLILHVDQGPDQDJHVQHWZRUNQHHGOLQHV
PRGLILHGWDEOHRIRUJDQL]DWLRQHTXLSPHQW 072( DQG
DXWRPDWHGV\VWHPFRQILJXUDWLRQILOHV
• 3ODQVFRRUGLQDWHVDQGPDQDJHVFRPPXQLFDWLRQVOLQNV
LQFOXGLQJUHDFKEDFNFRPPXQLFDWLRQV
• 0DQDJHVILHOGVHUYLFHUHSUHVHQWDWLYHV )65 DQGFRQWUROV
WKHLUPRYHPHQWVRQWKHEDWWOHILHOG
• 0DLQWDLQV6$RIV\VWHPQHWZRUNVWDWXV
• &RRUGLQDWHVZLWKKLJKHUHFKHORQVLJQDORIILFHUVIRUDGGLWLRQDO
FRPPXQLFDWLRQVVXSSRUW
• 'HYHORSVDQGFRRUGLQDWHVWKHVLJQDOGLJLWDOVXSSRUWSODQ
• 'HWHUPLQHVV\VWHPDQGUHWUDQVPLVVLRQUHTXLUHPHQWVIRUWKH
WDFWLFDOVLWXDWLRQ
• &RRUGLQDWHVZLWKKLJKHUDGMDFHQWDQGVXERUGLQDWHXQLWVWR
GHYHORSWKHVLJQDOGLJLWDOVXSSRUWSODQ
• 0DQDJHVWKHUHOHDVHRI$%&6VRIWZDUHZLWKLQWKHXQLW
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
   
• 3URYLGHVDIRFDOSRLQWIRUDXWRPDWLRQVXSSRUW KHOSGHVN 
• ,PSOHPHQWVDQGHQIRUFHV/$1VHFXULW\SROLFLHV
• (VWDEOLVKHV&206(&DFFRXQWDELOLW\GLVWULEXWLRQ
GHVWUXFWLRQDQGVHFXULW\SURFHGXUHVZLWKLQWKHXQLW
• 0DQDJHVWKHKHOSGHVN
• $QQRXQFHVSODQQHGDQGXQSODQQHGQHWZRUNRXWDJHV
• 0DQDJHVFRQWLQJHQF\RSHUDWLRQVIRUSODQQHGDQGXQSODQQHG
RXWDJHV
• 3UHSDUHVD6ODQW5HSRUWIRUEDWWOHILHOGXSGDWHEULHILQJV
%8% 

6HFWLRQ±$%&66\VWHP %DWWDOLRQ/HYHO
6\VWHPV 

$%$&'(
7KLVVHFWLRQSUHVXSSRVHVWKDWWKH%16LVNQRZOHGJHDEOHRIWKH$%&6
VXLWHRIV\VWHPV7KHIROORZLQJLQIRUPDWLRQDERXW$%&6V\VWHPV
WKDWPD\EHIRXQGDWWKH$51*%1OHYHOLVSUHVHQWHGLQDIRFXVHG
FRPSRVLWHPDQQHUWRIDFLOLWDWHEULHILQJ%1FRPPDQGHUVDQGVWDIIV,WZLOO
QRWQRUPDOO\EHQHFHVVDU\IRUWKH6WRSUHVHQWWHFKQLFDOGHWDLORQWKHVH
V\VWHPV$OVRLQFOXGHGLQWKLVVHFWLRQLVLQIRUPDWLRQWKH6VKRXOGEH
DZDUHRIFRQFHUQLQJWKH&23DQGLWVLPSRUWDQFHWRWKH%1&RPPDQGHU
DQGVWDII

'%$6<$& /%*&/(,.*$39 :
ƒ :KDWLVLW"
• 7KH0&6LVDQLQWHJUDWHGV\VWHPRIKDUGZDUHVRIWZDUH
SHUVRQQHODQGSURFHGXUHVDQGLVXVHGDWFRUSVGLYLVLRQ
%'(DQG%1HFKHORQVDVZHOODVDWVHOHFWHGFRPSDQLHV,WLV
DVHWRIPRGXODUDSSOLFDWLRQVWKDWUHVLGHRQDVRIWZDUH
SODWIRUPFRQVLVWLQJRIFRPPRQDSSOLFDWLRQVDQG&2(
VRIWZDUH,WDOVRFRQWDLQVWRROVWKDWDOORZIRUWKHDGGLWLRQRI
VSHFLILFVWDIIRIILFHURULHQWHGDSSOLFDWLRQV0&6LVFDSDEOHRI
EHLQJLQVWDOOHGDQGRSHUDWHGLQDUPRUHGDQGZKHHOHG
YHKLFOHVWHQWVDQGLQWKRVHDLUFUDIWXVHGDV&QRGHVDWFRUSV
DQGEHORZ0&6LVGHVLJQHGWRDVVLVWWKHFRPPDQGHUDQGKLV
VWDIILQSODQQLQJGLUHFWLQJPRQLWRULQJDQGFRQWUROOLQJ
FRPEDWRSHUDWLRQVIURP%1WRFRUSV,WLVLQWHQGHGDVWKH
FHQWHUSLHFHRI$%&6DQGLVFRQVLGHUHGWKH³V\VWHPRI
V\VWHPV´
ƒ :KDWGRHVLWGR"

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 ! 
• 8VLQJ0&6WKHFRPPDQGHUFDQWUDQVPLWFULWLFDO
EDWWOHILHOGLQIRUPDWLRQVXFKDVPLVVLRQLQIRUPDWLRQXQLWWDVN
RUJDQL]DWLRQFKDQJHV&2$VVFKHPHVRIPDQHXYHU
:$512VDQG2325'VSULRULWLHVLQWHOOLJHQFHUHTXHVWV
ILUHVDQGDLUUHTXHVWVDQGPXFKPRUH
• 0&6SXEOLVKHVFXUUHQWWDVNRUJDQL]DWLRQVSRVLWLRQUHSRUWV
JUDSKLFV2325'VDQGFRPEDWSRZHUSURMHFWLRQWRWKH%&6
DQLQWHJUDOSDUWRI0&6WRZKLFKRWKHU:))FDQVXEVFULEH
• 0&63XEOLVKDQG6XEVFULEH6HUYLFHV 3$66 VXSSOLHV
SODQQHGLQIRUPDWLRQIRU%&6VWDIIVWRUHYLHZDQGWKHQ
UHWXUQIRUSXEOLVKLQJWRWKH%&6
• $OWKRXJKVRPHFULWLFDORSHUDWLRQDOJUDSKLFVPD\EHPDGH
DYDLODEOHE\ZD\RIZHEVLWHVWKH&23LVSULPDULO\SRUWUD\HG
XVLQJWKLVV\VWHP:KHQWKH0&6LVEURXJKWRQOLQHWKH
FRPPDQGHUFDQJHWDSLFWXUHRIWKHEDWWOHILHOGDQGEHJLQ
SODQQLQJRSHUDWLRQVXVLQJWKH0'037KHFRPPDQGHUDQG
VWDIIFDQVXEVFULEHWRRWKHUHFKHORQVUHFHLYLQJWDFWLFDO
LQIRUPDWLRQDQGSODQV7KHJDWHZD\FRQQHFWV0&6V\VWHPV
IRUSDVVLQJRI0&6LQIRUPDWLRQDPRQJHFKHORQV
ƒ 7\SLFDOFRPPDQGHUTXHVWLRQVDQGKRZ0&6KHOSVDQVZHUWKHP
• :KHUHDP,"3RVLWLRQUHSRUWVIURPWKH)%&%DUHUHFHLYHG
WKURXJKWKH3$66RUGLUHFWO\YLDWKH(QKDQFH3RVLWLRQ
/RFDWLRQ5HSRUWLQJ6\VWHP (3/56 WKHQILOWHUHGIURPWKH
/LYH)HHG3RVLWLRQUHSRUWVIURPQRQ)%&%XQLWVDUH
UHFHLYHGIURPRWKHU0&6FOLHQWVVHQWWKURXJKWKH3$66
• :KDWLVP\VWDWXV"$FWXDOVWDWXVIRUXQLWVLVXSGDWHGRQWKH
WDVNRUJDQL]DWLRQIURPWKH0&6VHUYHU
• :KHUHDUHWKHRWKHUIULHQGO\XQLWV"2WKHUIULHQGO\XQLW
ORFDWLRQVDUHVHQWWKURXJKWKH3$66IURP)%&%0&6
$)$7'6&RPPDQGDQG&RQWURO3HUVRQDO&RPSXWHU
&3& DQG*OREDO&RPPDQGDQG&RQWURO6\VWHP *&&6 
DVD/LYHIHHG
• :KDWLVWKHLUVWDWXV"6ODQWDQGSRVLWLRQUHSRUWVDUHUHFHLYHG
IURPWKH3$66DQGXSGDWHGRQWKHWDVNRUJDQL]DWLRQIURPWKH
0&6VHUYHU
• :KHUHLVWKHHQHP\"8QFRUUHODWHG)%&%VSRWUHSRUWVDUH
VHQWWKURXJKWKH3$66WRWKH0&65HG/LYH)HHG&RUUHODWHG
HQHP\LQWHOOLJHQFHGDWDLVUHFHLYHGDVDQRYHUOD\IURPWKH
$6$6WKURXJKWKH:HE6HUYHU
• :KDWLVKHHQHP\¶VVWDWXV"7KHHQHP\VWDWXVLVXSGDWHG
IURPWKHFRUUHODWHG$6$6RYHUOD\V

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 " 

((/6&8$%'(,.4.,.*$34+)*9:

ƒ :KDWLVLW"
• $6$6/LVDZLQGRZVEDVHGLQWHOOLJHQFHIXVLRQV\VWHP
ZKLFKSURYLGHVDWLPHO\DFFXUDWHDQGUHOHYDQWSLFWXUHRIWKH
NQRZQHQHP\VLWXDWLRQWRFRPPDQGHUVDWDOOHFKHORQV
$6$6/LVWKHLQWHJUDOV\VWHPLQIRUPLQJVHDPOHVV
LQWHOOLJHQFHDUFKLWHFWXUHEHWZHHQDQGDFURVVHFKHORQV7KH
DUFKLWHFWXUHFDQEHEURNHQGRZQLQWRWKUHHPDMRUJURXSV
VHQVRUVSURFHVVRUVDQGFRPPXQLFDWLRQVV\VWHPV7KH
V\VWHPVZLWKLQHDFKJURXSVXSSRUWVLPXOWDQHRXVGHPDQGVIRU
LQWHOOLJHQFHDQGWDUJHWLQJLQIRUPDWLRQDWPXOWLSOHHFKHORQV
DQGIRUPDVHDPOHVVLQWHOOLJHQFHFDSDELOLW\WKDWVXSSRUWV
FRPPDQGHUVWKURXJKVWUDWHJLFOHYHOVDFURVVWKHUDQJHRI
PLOLWDU\RSHUDWLRQV
ƒ :KDWGRHVLWGR"
• $6$6/EULQJVGLJLWL]DWLRQWRWKHLQWHOOLJHQFHVWDIIIURP
HFKHORQVDERYHFRUSV ($& WR%1DQGUHPRWHHOHPHQWVRI
WKH6SHFLDO)RUFHV
• $6$6/UHFHLYHVDQGSURFHVVHVODUJHDPRXQWVRILQWHOOLJHQFH
LQIRUPDWLRQIURP1DWLRQDOWKHDWHUDQGWDFWLFDOVRXUFHV
LQFOXGLQJ6327UHSRUWVJHQHUDWHGRQ)%&%
• $6$6/DFKLHYHVD³UHOHYDQWSLFWXUHRIWKHNQRZQHQHP\
VLWXDWLRQ´E\UHFHLYLQJXQFRUUHODWHGHQHP\6327UHSRUWV
IURPWKH)%&%DQGH[WHUQDOGDWDEDVHFRRUGLQDWLRQ ('& 
PHVVDJHV7KLVIDFLOLWDWHVWKHIXVLRQRILQFRPLQJGDWDLQWRDQ
DFFXUDWHWKUHDWSLFWXUHRIFRUUHODWHGXQLWVNQRZQDVWKH
VLWXDWLRQWHPSODWH 6,77(03 RYHUOD\7KH6,77(03
RYHUOD\LVWKHPDLQFRQWULEXWLRQRIWKH$6$6/WRWKH&23
DQGLVGLVSOD\HGWKURXJKWKH0&6YLD3$663$66LV
DFFRPSOLVKHGZKHQWKH$6$6/SXEOLVKHVWKH6,77(03
RYHUOD\WRWKH$XWRPDWHG,QIRUPDWLRQ6\VWHP $,6 7KHQ
WKH0&6VXEVFULEHVWRWKH6,77(03RYHUOD\DQGSXOOVWKDW
LQIRUPDWLRQIURPWKH%&6WRDPDSGLVSOD\LQJWKH&23
• $6$6/PHHWVWKHGHPDQGVRIEDWWOHILHOGSRUWDELOLW\DQG
LQWHURSHUDELOLW\
• ,WZRUNVLQDQHWZRUNHGVWDQGDORQHHQYLURQPHQWKDVD
VPDOOIRRWSULQWVLJQDWXUHDQGKDVUHGXFHGSRZHU
UHTXLUHPHQWV
• $6$6/HQDEOHVWDFWLFDOXQLWVWRH[FKDQJHLQWHOOLJHQFH
LQIRUPDWLRQXVLQJVWDQGDUGPHVVDJHIRUPDWV;0/GDWD
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
WUDQVIHUDQGDYDULHW\RIRYHUOD\IRUPDWVDQGZHEEDVHG
SURGXFWV,WFUHDWHVVHDPOHVVFRQQHFWLYLW\E\LQWHUIDFLQJZLWK
WKHWDFWLFDOLQWHUQHWDQGVHOHFWFRPEDWQHWUDGLRV
• 6HDPOHVVGLVVHPLQDWLRQRILQWHOOLJHQFHEHWZHHQGLVWDQWVLWHV
LVPDGHSRVVLEOHE\WKHDELOLW\RI$6$6/WRSDVVGLJLWDOGDWD
RYHUWDFWLFDOUDGLRV
• $6$6/HQDEOHVWZRZD\FRPPXQLFDWLRQRIRWKHUHVVHQWLDO
EDWWOHILHOGPHVVDJHVVXFKDVWKH6$/87(7DFWLFDO5HSRUW
7$&5(3 (QHP\6LWXDWLRQ (16,7 (QHP\2UGHURI
%DWWOH6LWXDWLRQ5HSRUW (2%65(3 DQG7DUJHW,QWHOOLJHQFH
'DWD 7,'$7 
• ,WFDQDOVRH[FKDQJHEDWWOHILHOGJHRPHWU\GDWDXVLQJRYHUOD\
ILOHV6%DWWOHILHOG*HRPHWU\PHVVDJHVDQGH[FKDQJH
9DULDEOH0HVVDJH)RUPDW 90) PHVVDJHVVXFKDV.
(QWLW\'DWDZLWK)%&%
• 2QHRIWKHVWURQJHVWIHDWXUHVRI$6$6/LVWKHXVHRIORFDO
VHUYHUVHDFK$6$6/SURYLGHVLWVRZQPDLOILOHWUDQVIHU
SURWRFRO )73 DQGZHEVHUYHUV

ƒ 7\SLFDOFRPPDQGHUTXHVWLRQVDQGKRZ$6$6/KHOSVDQVZHUWKHP
• :KHUHLVWKHHQHP\"
• 5HDGVUHYLHZVDQGLQSXWV6327DQG6$/87(UHSRUWVLQWR$6$6/
• $QDO\]HVWKHEDWWOHILHOG
• 6HQGVWKHHQHP\XQLW¶VORFDWLRQGLUHFWO\WR$)$7'6YLD6RU6
UHSRUWVDQGWR0&6YLDDQ6UHSRUWRUPDQXDOO\YLDRYHUOD\
• :KDWLVWKHHQHP\¶VVWDWXV"
• 6HQGVDQ,17680DQG,QWHOOLJHQFH5HSRUW ,175(3  DOWHUQDWLQJ WR
++4HYHU\WZHOYHKRXUV
• 6\QFKURQL]HV$OO6RXUFHFRUUHODWHGDQGLQGLYLGXDOHYHQWDQG
RUJDQL]DWLRQGDWDEDVHVZLWK++4
• ,GHQWLILHVDQGXSGDWHVWKH0DLQ6XSSO\5RXWH 065 $$

-<'%8$-4$(-&*4(($&,'8*48'('*',.*$39:

ƒ :KDWLVLW"
• $)$7'6LVDQLQWHJUDWHGILUHVXSSRUW&V\VWHPWKDW
SURFHVVHVILUHPLVVLRQVDQGRWKHUUHODWHGLQIRUPDWLRQWR
FRRUGLQDWHDQGPD[LPL]HWKHXVHRIDOOILUHVXSSRUWDVVHWV
PRUWDUVILHOGDUWLOOHU\DWWDFNKHOLFRSWHUVDLUVXSSRUWQDYDO
JXQILUHDQGRIIHQVLYHHOHFWURQLFZDUIDUH ,WPHHWVWKHQHHGV
RIWKHILHOGDUWLOOHU\E\PDQDJLQJFULWLFDOUHVRXUFHVDQG
FROOHFWLQJDQGSDVVLQJLQWHOOLJHQFHLQIRUPDWLRQ
ƒ :KDWGRHVLWGR"
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
• $)$7'6IDFLOLWDWHVWDFWLFDO&IRUILUHVXSSRUWHOHPHQWV
• $)$7'6LV81,;EDVHGDQGRSHUDWHVDVD³VWDQGDORQH´
V\VWHP
• ,WSHUIRUPVWKHIXQFWLRQVDQGDVVXPHVWKHUROHRIDQ
LQGLYLGXDOXQLW
• %\XVLQJWKH-RLQW0DSSLQJ7RRO.LW -07. $)$7'6
GLVSOD\VWKH&238WLOL]LQJWKH&23$)$7'6FDQSURYLGH
DQDFFXUDWH³SLFWXUH´RIWKHEDWWOHILHOGVRILUHVXSSRUWDVVHWV
FDQEHXWLOL]HGPRUHHIIHFWLYHO\
• $)$7'6DOORZVWKHFRPPDQGHU¶VWDUJHWLQJSULRULWLHVWREH
LQFOXGHGLQWRWKHGDWDEDVHDQGXVHGLQWKHSURFHVVLQJRI
PLVVLRQV7KLVLQFUHDVHVWKHHIILFLHQF\RIILUHVDQGSODQQLQJ
DOORZLQJWKHSURFHVVWRWDNHSODFHGLJLWDOO\8VLQJ
LQIRUPDWLRQIURPWKH2325')LHOG$UWLOOHU\6XSSRUW3ODQ
)$63 DQG7$&623$)$7'6FRQWDLQVVXFKLQIRUPDWLRQ
DVWKH+37/DQGWKHDWWDFNJXLGDQFHPDWUL[ $*0 +DYLQJ
WKLVGDWDLQWKH$)$7'6GDWDEDVHSURYLGHVPRUHDXWRPDWLRQ
RIWKHILUHPLVVLRQSURFHVV
• $)$7'6SXEOLVKHVSRVLWLRQUHSRUWVDQGJUDSKLFVWRWKH%&6
WKDW%&6WKDWRWKHUEDWWOHILHOGV\VWHPVFDQWKHQVXEVFULEHWR
• $)$7'6KDVWKHDELOLW\WRPDLQWDLQWHFKQLFDODQGWDFWLFDO
FRQWURORIILUHVXSSRUWDVVHWV$)$7'6WKURXJKGLUHFW
FRPPXQLFDWLRQVFDQFRPSXWHEDOOLVWLFGDWDLVVXH
GHSOR\PHQWRUGHUVDQGWUDFNDPPXQLWLRQIRUDUWLOOHU\DVVHWV
7KLVFRQWUROLVSDUWRIWKHVRIWZDUHDQGGDWDEDVH7KLVGDWD
FDQEHVHQWWKURXJKWKH3$66VRWKDWLWHPVVXFKDVUDQJHIDQV
FDQEHGLVSOD\HGRQWKH0&6RURWKHU&V\VWHPVWRZKLFK
RWKHUEDWWOHILHOGV\VWHPVFDQVXEVFULEH
• 7RHQVXUHDQDFFXUDWH&23$)$7'6H[FKDQJHVGDWD
EHWZHHQRWKHU$%&6 $6$6/0&6DQG)%&% DQGQRQ
$%&6V\VWHPV HJ$UP\)DFLOLWLHV&RPSRQHQWV6\VWHP
$)&6 &3&DQG)XWXUH&RPEDW6\VWHPV )&6 ,WGRHV
WKLVWKURXJKERWKGLUHFWDQGLQGLUHFWFRPPXQLFDWLRQV7KH
LQGLUHFWFRPPXQLFDWLRQSDWKFXUUHQWO\XWLOL]HGLVWKH3$66
7KH3$66FRQWDLQV³7RSLFV´RUFDWHJRULHVRILQIRUPDWLRQ
EDVHGXSRQWKHV\VWHPDQGW\SHRIGDWD7KHVHWRSLFVFRQWDLQ
LQIRUPDWLRQVXFKDVDQHQHP\VLWXDWLRQIURP$6$6/RU
SRVLWLRQUHSRUWVIURP)%&%%OXH)RUFH7UDFNHU %)7 
$)$7'6FDQRQO\SXEOLVKWKUHHWRSLFVWRWKH3$667KHVH
DUHJUDSKLFVSRVLWLRQUHSRUWVDQGWDUJHWV7KURXJKWKH
³WUDFNVZRUNVSDFH´LQ$)$7'6LWFDQVXEVFULEHWRDVPDQ\
WRSLFVDVQHHGHG
ƒ 7\SLFDOFRPPDQGHUTXHVWLRQVDQGKRZ$)$7'6KHOSVDQVZHUWKHP
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
• :KHUHDP,"3RVLWLRQUHSRUWVIURPWKH)%&%DUH
UHFHLYHGWKURXJKWKH3$66RUGLUHFWO\YLD(3/563RVLWLRQ
UHSRUWVIURPQRQ)%&%XQLWVDUHUHFHLYHGIURPRWKHU
$)$7'6
• :KDWLVP\VWDWXV"6ODQWUHSRUWVDUHVHQWWKURXJKWKH3$66
RU(3/56IURPWKH)%&%$FWXDO6WDWXVIRU8QLWVDQG
ZHDSRQVDUHVHQWIURPRWKHU$)$7'6
• :KHUHDUHWKHRWKHUIULHQGO\XQLWVDQGZKDWLVWKHLUVWDWXV"
• 2WKHUIULHQGO\XQLWVDUHVHQWDVWUDFNGDWDRUDFWXDOXQLWLQIRUPDWLRQ
WKURXJKWKH3$66IURPWKH0&6)%&%RUWKURXJK$)$7'6IURP
ILUHVXSSRUWDVVHWV
• 6ODQWUHSRUWVDQGSRVLWLRQUHSRUWVDUHUHFHLYHGIURPWKH3$66RU
$)$7'6IRUWKHILUHVXSSRUWV\VWHPV,WLVXSGDWHGDXWRPDWLFDOO\DVWKH
V\VWHPVVHQGWKHLQIRUPDWLRQ
• :KHUHLVWKHHQHP\DQGZKDWLVKLVVWDWXV"
• 6 UHSRUW DQGRWKHUHQHP\LQWHOOLJHQFHGDWDLVUHFHLYHGIURPWKH
$6$6/DQG)%&%GLUHFWO\RUWKURXJKWKH3$66VHUYHU$)$7'6
VHQGV$7,DQGWDUJHWGDWDWRWKH$6$6/GLUHFWO\RUWKURXJKWKH3$66
• 7KHVWDWXVLVXSGDWHGYLDHLWKHUWKH3$66IURP$6$6/RUWKURXJK
RWKHU$)$7'6DVWDUJHWVDUHHQJDJHG

/&8$>>'**($ /33'%-&4+'-$'%-$(/19 :

ƒ :KDWLVLW")%&%KDUGZDUHLVDPL[RIFRPPHUFLDOUXJJHGL]HGDQG
PLOLWDUL]HGFRPSXWHUVLQVWDOOHGLQYHKLFOHVDW%'(DQGEHORZ:KHQ
DYDLODEOHWKH)%&%FDQEHFRQQHFWHGWRWKH'HIHQVH$GYDQFHG
*OREDO3RVLWLRQLQJ6\VWHP *36 5HFHLYHU '$*5 DQGRWKHU
HPEHGGHGSODWIRUPLQWHUIDFHVVXFKDVWKH%DWWOHILHOG&RPEDW
,GHQWLILFDWLRQ6\VWHP %&,6 )%&%LVFRPPRQWRDOODVSHFWVRIWKH
GLJLWL]HGEDWWOHILHOGDQGSODWIRUPVIRXQGLQSODWRRQVDQGFRPSDQLHVLQ
IXOO\GLJLWL]HGXQLWV)%&%XVHVWKH90)WRVHQGDQGUHFHLYH
PHVVDJHVKRUL]RQWDOO\DQGYHUWLFDOO\RQWKHEDWWOHILHOGUHJDUGOHVVRI
WDVNRUJDQL]DWLRQ90)IDFLOLWDWHVFRPPXQLFDWLRQDQGSURFHVVLQJ
FDSDELOLWLHVIRUWKHZDUILJKWHUZKLFK\LHOGVLJQLILFDQWDGYDQWDJHVLQ
WZRNH\DUHDV
• 6LWXDWLRQDO,QIRUPDWLRQ6LWXDWLRQDOLQIRUPDWLRQLVDVWDWH
RIXQGHUVWDQGLQJJDLQHGIURPNQRZOHGJHEDVHGRQDFFXUDWH
DQGUHDOWLPHLQIRUPDWLRQRIIULHQGO\HQHP\QHXWUDODQG
QRQFRPEDWDQWORFDWLRQV,WFRQVLVWVRID&23RIWKH
EDWWOHILHOGVFDOHGWRVSHFLILFOHYHOVRILQWHUHVWDQGQHHGV
• &RPPDQGDQG&RQWURO&LVGLUHFWLRQE\DFRPPDQGHU
RYHUDVVLJQHGIRUFHVLQDFFRPSOLVKLQJDPLVVLRQ$
FRPPDQGHUHPSOR\V&IXQFWLRQVDVKHSODQVGLUHFWVDQG
FRQWUROVIRUFHVDQGRSHUDWLRQVWRDFFRPSOLVKDPLVVLRQ

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  
ƒ :KDWGRHVLWGR"
• )%&%VLJQLILFDQWO\LPSURYHVWKHHIIHFWLYHQHVVRIWKHIRUFH
E\SURYLGLQJXSWRGDWHFRPEDWVLWXDWLRQLQIRUPDWLRQEDVHG
RQHFKHORQDQGORFDWLRQLQFOXGLQJWKHIROORZLQJ
• )ULHQGO\DQGNQRZQHQHP\SRVLWLRQV
• $LUDQGJURXQGXQLWSRVLWLRQV
• 0DSVWHUUDLQDQGHOHYDWLRQ
• )%&%DOVRSURYLGHVUDSLGJHQHUDWLRQDQGGLVVHPLQDWLRQRI
PHVVDJHVDQGDFNQRZOHGJPHQWVLQFOXGLQJWKHIROORZLQJ
• 2UGHUVDQGUHTXHVWV
• )LUHVDQGDOHUWV
• 5HSRUWV
• 5DSLGJHQHUDWLRQDQGGLVVHPLQDWLRQRIRYHUOD\VRQWKH
VLWXDWLRQSLFWXUH
• 6HPLDXWRPDWLFH[FKDQJHRIVHOHFWHGPLVVLRQFULWLFDOGDWD
EHWZHHQWKH)%&%DQGWKH$%&6FRPSRQHQWV\VWHPV

)$ /33/%7$&'*4/%'(#48*6&$

ƒ :KDWLVLW"
• $Q\GLVFXVVLRQRI$%&6PXVWDGGUHVVWKH&23$VDVLQJOH
LGHQWLFDOGLVSOD\RIUHOHYDQWLQIRUPDWLRQVKDUHGE\PRUHWKDQ
RQHFRPPDQGLWLVEDVHGRQLQIRUPDWLRQIHGXSIURP
)%&%IURPWKH$%&6V\VWHPVLQWKHFRPPDQGSRVWDQG
LQIRUPDWLRQVHQWGRZQIURPKLJKHUHFKHORQ$%&6V\VWHPV
$OORIWKLVLQIRUPDWLRQLVIHGLQWRWKH72&VHUYHUDQG
GLVSOD\HGXVLQJWKH0&67KH&23FRQVLVWVRIFRPEDW
SRZHUFKDUWVHYHQWVEDWWOHUK\WKPUHSRUWVEDWWOHXSGDWH
DVVHVVPHQWVDQDO\VLVWKUHDWXSGDWHVDQGOHYHUDJHVWKH
GLJLWDOWHFKQRORJ\SURYLGHGE\WKH0&6,QWKH72&WKH
0&6SURYLGHVWKHQHDUUHDOWLPHDELOLW\WR³VHH\RXUVHOIDQG
³VHHWKHWKUHDW´DQGLVDFFHVVLEOHIURPDQ\$%&6V\VWHPLQ
WKH72&7KHWRWDO$%&6V\VWHPLQIRUPDWLRQFRQWULEXWLRQWR
WKH&23SURYLGHVDFRPSUHKHQVLYHSLFWXUHRIWKHRSHUDWLRQDO
HQYLURQPHQWWKDWIDFLOLWDWHVTXLFNDFFHVVWRFULWLFDOWLPH
VHQVLWLYHLQIRUPDWLRQLQWHOOLJHQFHDQGGDWDGUDZQIURPRWKHU
:))ZLWKLQWKH&3RUIURPKLJKHUDQGORZHUHFKHORQV
&RQVLGHUWKHDFFRPSDQ\LQJJUDSKLFIRUWKHWRWDO:))
³SLFWXUH´FRQWULEXWLRQWRWKH&23


%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

$%&66\VWHP&RQWULEXWLRQWRWKH&23

$6$6 $)$7'6

(QHP\3LFWXUH )LUH6XSSRUW3LFWXUH 

0&6 )%&% 
$0':6 
)ULHQGO\3LFWXUH
$LU'HIHQVH3LFWXUH

%&6
&23 *&&6$

/RJLVWLFV3LFWXUH -RLQW3LFWXUH


'766 ,0(76 
7HUUDLQ3LFWXUH :HDWKHU3LFWXUH 
7$,6 
$LUVSDFH3LFWXUH 

ƒ :KDWDUHWKHDGYDQWDJHV"7KH&23LVNH\WRHDFKVWHSZLWKLQWKH
RSHUDWLRQVSURFHVVSODQSUHSDUHH[HFXWHDQGDVVHVV)ROORZLQJDUH
VRPHRIWKHDGYDQWDJHV
• 3/$1
• $VVLVWVWKHFRPPDQGHULQSURYLGLQJKLVLQWHQWDQGLVVXLQJSODQQLQJ
JXLGDQFH
• +HOSVWKHFRPPDQGHUVWDIIDQGVXERUGLQDWHOHDGHUVIRFXVRQUHOHYDQW
LQIRUPDWLRQIRUDQRSHUDWLRQ
• (QKDQFHVFROODERUDWLRQWKXVDOORZLQJPRUHHIILFLHQWSODQQLQJ
GLUHFWLQJDQGEULHIEDFNV
• 3URPRWHVVXERUGLQDWHXQLWSDUDOOHOSODQQLQJ
• $OORZVIRUSLFWXUHPRGLILFDWLRQWRPDWFKDQWLFLSDWHGEUDQFKHVDQG
VHTXHOV
• 5HGXFHVWKHQHHGIRUSURGXFWLRQRIH[WHQVLYHFRQWUROPHDVXUHVWR
FRRUGLQDWHPDQHXYHUDQGDYRLGIUDWULFLGH
• 35(3$5(
• 7KURXJKEULHIEDFNVVXERUGLQDWHOHDGHUVDUHEHWWHUDEOHWRFRQILUPWKH
&RPPDQGHU¶V,QWHQWDQGFRQFHSWRIRSHUDWLRQV
• 7DFWLFDOSODQVDQGUXQQLQJHVWLPDWHVFDQEHUHYLVHGWRPHHWFKDQJHV
DQGXQLWVFDQPRQLWRUWKHWDFWLFDOVLWXDWLRQZKLOHWKH\SUHSDUHIRU
FRPEDW
• +HOSVHQVXUHWKDW52(LVGLVVHPLQDWHGXQLIRUPO\GRZQWRWKHORZHVW
HFKHORQV
• (;(&87(
• $OORZVIRUUDSLGUHVSRQVHWRWKHHYROYLQJWDFWLFDOVLWXDWLRQDQGDOORZV
FRPPDQGHUVWRPDNHWKHULJKWGHFLVLRQVV\QFKURQL]HIRUFHVDQGILUHV
DQGVHL]HDQGUHWDLQWKHLQLWLDWLYH
• 6XSSRUWVEHWWHUULVNDVVHVVPHQW
• 5HGXFHVWKHFKDQFHRIIUDWULFLGHZLWKHQKDQFHGVLWXDWLRQDO
XQGHUVWDQGLQJ

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  
• 6XSSRUWVWKHFRPPDQGHUUDSLGO\FRPPXQLFDWLQJFKDQJHVWRDQ
RQJRLQJRSHUDWLRQ
• $66(66
• 3URPRWHVEHWWHUEDWWOHWUDFNLQJDQGKHOSVOHDGHUVPHDVXUHDQDO\]HDQG
UHSRUWXQLWSHUIRUPDQFHGXULQJDQRSHUDWLRQ
• 3URPRWHVVXERUGLQDWHXQLWDQGVWDIIIRFXVRI&&,5LIGHSLFWHGRQWKH
&23
• 6XSSRUWVSUHSODQQLQJWRUHDFWWRDQWLFLSDWHGFKDQJH

ƒ :KDWLQIRUPDWLRQFDQEHGLVSOD\HG"7KHIROORZLQJJUDSKLFGHSLFWV
WKHW\SHVRILQIRUPDWLRQLQSXWWKDWFRPPDQGHUVDQGVWDIIVZLOOILQG
KLJKO\UHOHYDQWLQIRUPLQJWKH&23$OOIRXUV\VWHPVDGGUHVVHGLQ
WKLVJXLGH 0&6$6$6$)$7'6DQG)%&% KDYHWKHFDSDELOLW\
WRH[FKDQJH VHQGDQGUHFHLYH WKHGHSLFWHGLQIRUPDWLRQH[FHSWIRUWKH
UDQJHFDUGDQGVHFWRU,'RYHUOD\WKDWDUHRQO\VXSSRUWHGE\0&6DQG
)%&%

&23,QIRUPDWLRQ'LVSOD\

2SHUDWLRQV2YHUOD\
*UDSKLFDOGHSLFWLRQRI2325'$QQH[&

3RVLWLRQ5HSRUW (QHP\2YHUOD\
)ULHQGO\ORFDWLRQ /RFDWLRQVL]HDFWLYLW\
RIHQHP\
2EVWDFOH2YHUOD\
*UDSKLFDOGHSLFWLRQRI 1%&2YHUOD\
IULHQGO\DQGHQHP\REVWDFOHV *UDSKLFDOGHSLFWLRQRIWKHORFDWLRQRI
GHFRQWDPLQDWLRQDQGUHFRQQDLVVDQFH
VLWHVDQGVPRNHRSHUDWLRQOLQHV
7UDIILF&RQWURO2YHUOD\
*UDSKLFDOGHSLFWLRQRIURXWHV &RPELQHG2EVWDFOH2YHUOD\
ORFDWLRQVDQGVL]HRIGHSLFWHGXQLWV *UDSKLFDOGHSLFWLRQRIWHUUDLQ
IRUXVHLQDYHQXHRIDSSURDFK
DQDO\VLV
6HFWRU,'2YHUOD\
*UDSKLFDOGHSLFWLRQRI
GHIHQVLYHRSHUDWLRQVDW
&23 0RGLILHG&RPELQHG2EVWDFOH2YHUOD\
FRPSDQ\OHYHODQGEHORZ 0&22
*UDSKLFDOGHSLFWLRQRI
WHUUDLQDQDO\VLVUHVXOWV

5DQJH&DUG
*UDSKLFDOGHSLFWLRQRIUDQJH )LUH6XSSRUW2YHUOD\
FDUGVGHYHORSHGIRUGHIHQVLYH *UDSKLFDOGHSLFWLRQRI)6FRRUGLQDWLQJPHDVXUHV
ILJKWLQJSRVLWLRQV DQGORFDWLRQRIILUHVDVVHWVHWF

)LUH3ODQ2YHUOD\ $LU6SDFH&RRUGLQDWLRQ2YHUOD\
*UDSKLFDOGHSLFWLRQRILQIRUPDWLRQ *UDSKLFDOGHSLFWLRQRIDLUVSDFH
XVHGWRFRQWUROILUHVDW FRQWURODUHDURXWHVHWF
FRPSDQ\OHYHODQGEHORZ %&62YHUOD\
0DSRYHUOD\GHSLFWLQJORFDWLRQ
DQGPLVVLRQLQIRUPDWLRQ
DERXW&66RSHUDWLRQV




%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

6HFWLRQ±%DWWOH&RPPDQGDQG$%&6 0'03 

$%$&'(

7KH%16LVDYHU\LPSRUWDQWSDUWRIEDWWOHFRPPDQG+LVUROHLQWKH
0'03WDNHVRQHYHQPRUHLPSRUWDQFHLQWRGD\¶V&2(LQRUGHUWRPHHW
WKHHYHUJURZLQJDQGFKDQJLQJUHTXLUHPHQWVIRUFRPPDQGFRQWURO
FRPPXQLFDWLRQVFRPSXWHUVLQWHOOLJHQFHVXUYHLOODQFHDQGUHFRQQDLVVDQFH
(YHU\WKLQJIURP6EDWWOHWUDFNLQJVWDIILQWHJUDWLRQFRPPXQLFDWLRQV
UHKHDUVDOVLQIRUPDWLRQIORZDQGVXSSRUWWRWKHZDUILJKWHULVURRWHGLQWKH
0'03

3ODQQLQJLQDGLJLWDO72&LQFOXGHVWKHVDPH0'03UHTXLUHPHQWVIRXQGLQ
WKHDQDORJ72&«WKH%1VWDIIFROOHFWLYHO\DQDO\]LQJDQGLQWHJUDWLQJ
LQIRUPDWLRQZLWKVRXQGGRFWULQHDQGWHFKQLFDODQGWDFWLFDOFRPSHWHQFHWR
DVVLVWWKHFRPPDQGHULQKLVGHFLVLRQVDQGSUHSDUDWLRQRIDVXFFHVVIXOSODQ
7KHVWDIIDFWLRQVDQGRXWSXWVWKDWDSSHDURQWKHIROORZLQJSDJHVKDYHEHHQ
SUHSDUHGZLWKSDUWLFXODUDWWHQWLRQSDLGWRWKH$%&6VXLWHRIV\VWHPV
DYDLODEOHWRWKHFRPELQHGDUPV6WU\NHUOLJKWLQIDQWU\DLUDVVDXOWDQG
DLUERUQH%1V7KHOLVWHGDFWLRQVDQGSURGXFWVDUHQRWLQWHQGHGWREHDOO
LQFOXVLYHRIWKHP\ULDGLGHQWLILHGLQ)0DQG)0,EXWVKRXOG
SURYLGHWKHXQLW6ZLWK0'03EDWWOHVWDIIWDVNLQVLJKWWKDWZLOODVVLVWLQ
RSHUDWLRQDOSODQQLQJ7KH%16LVHQFRXUDJHGWRFRPSDUHWKLV0'03
VHFWLRQZLWKWKHGLJLWDO72&WDVNLQWHJUDWLRQVHFWLRQLQ6HFWLRQ7KH
IROORZLQJSDUDJUDSKVDGGUHVVHDFKVWHSRIWKH0'03DQGWKHVXEWDVNVWKDW
VXSSRUWHDFKVWHS7KH$%&6V\VWHPRUV\VWHPVWKDWVKRXOGEH
SUHGRPLQDWHO\FRQVLGHUHGWRSHUIRUPWKHSODQQLQJDFWLRQVOLVWHGIRUHDFK
0'03VXEWDVNLVDUHQRWHGLQSDUHQWKHVHV

0'036WHS±5HFHLSWRI0LVVLRQ
ƒ $OHUWWKH6WDII 0&6 
• $%&63ODQQLQJ$FWLRQV
• 3RVWWKH++4RUGHU :$512)5$*2RU2325' DQGJUDSKLFVRU
WKHDQWLFLSDWHGQHZPLVVLRQVWDWHPHQWWRWKH72&VHUYHU+RPH3DJH
• 1RWLI\EDWWOHVWDIIRIDUULYDODQGORFDWLRQRISURGXFWV
• (QVXUHDOODYDLODEOHRUGHUVIURP++4DUHGLVWULEXWHGWRSODQQLQJWHDP
PHPEHUV
• 7KH;2DOHUWVWKHEDWWOHVWDIIWRWKHSHQGLQJSODQQLQJSURFHVV
,QFOXGLQJ:KRLVWRDWWHQGZKRWKHDOWHUQDWHVDUHDQGZKHUHDQG
ZKHQWKH\VKRXOGDVVHPEOH
• 7KH6LQWXUQDOHUWVWKHFRPPXQLFDWLRQVVHFWLRQ V 

ƒ *DWKHUWKH7RROV $OO$%&66\VWHPV 
• $%&63ODQQLQJ$FWLRQV
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
   
• 5HWULHYHWKHWRROVQHHGHGWREHJLQPLVVLRQDQDO\VLV
• ([FKDQJHLQIRUPDWLRQZLWKLQWKHWDFWLFDORSHUDWLRQVFHQWHU ,QWHU72& 
DQGH[WHUQDO ,QWUD72& 
• *DWKHUXQLWDQG++4623V127(623VPXVWLGHQWLI\DJHQHULFOLVW
RIUHTXLUHPHQWVIRUSDUWLFXODUW\SHVRIPLVVLRQ
• 1RWLI\WKHVWDIIRIWKHORFDWLRQRIWKH:$512)5$*22325'DQG
JUDSKLFVRUQHZPLVVLRQVWDWHPHQWRQWKHZHESDJHRUVKDUHGIROGHU
• 5HWULHYHEDVHRUGHUDQG:))DQQH[HVRI++4RUGHUDQGDQ\
SDUWLFXODU:))VSHFLILFUHIHUHQFHPDWHULDOVDQGWRROV
• &RQILJXUHWKHUHTXLUHGPDSVRIWKHDUHDRIRSHUDWLRQVRQ$%&6
• *DWKHU$6$6SURGXFWV
• *DWKHUWKHWRROVWRFRQGXFW,3%
• *DWKHUH[LVWLQJ++4DQGXQLWUXQQLQJHVWLPDWHVRWKHUPDWHULDODQG
SURGXFWVUHTXLUHG
• ,PSRUWRSHUDWLRQVRYHUOD\VIURPVXERUGLQDWHDGMDFHQWDQG++4
• ([SRUWRSHUDWLRQVRYHUOD\VWRVXERUGLQDWHDGMDFHQWDQG++4
• 7KH66HFWLRQLPPHGLDWHO\JDWKHUVPDWHULDOVDQGWRROV
QHHGHGWRFRQGXFW0LVVLRQ$QDO\VLVIURPDFRPPXQLFDWLRQV
SHUVSHFWLYH
• ++4VLJQDOSODQVDQQH[HV7$&623
• ++4QHWZRUNDUFKLWHFWXUH
• 6LJQDODVVHWDOORFDWLRQ
• 5HVRXUFHDOORFDWLRQ HJIUHTXHQFLHV7$&6$7DFFHVVEDQGZLGWK
GDWDVHUYLFHV 
• 3ODQQLQJ3URGXFWV
• 0LVVLRQDQDO\VLVWRROV
• 8QLW7$&623

ƒ 8SGDWH5XQQLQJ(VWLPDWHV 0&6%&6 
• $%&63ODQQLQJ$FWLRQV
• 'LUHFWWKHEDWWOHVWDIIWRXSGDWHUXQQLQJHVWLPDWHV
• 8SGDWHUXQQLQJHVWLPDWHVWRHQVXUHWKH\DUHFXUUHQWDQGFRQWDLQFULWLFDO
LQIRUPDWLRQ
• 'HWHUPLQHVWDWXVRIIULHQGO\XQLWVVXFKDVORFDWLRQVFRPEDW
FDSDELOLWLHVOHYHORIWUDLQLQJHIIHFWLYHQHVVGHJUHHRIPRELOLW\
UDGLDWLRQH[SRVXUHOLPLWDWLRQVDQGFXUUHQWPLVVLRQV
• 'HWHUPLQHXQLWUHVRXUFHV
• 6EHJLQVSUHSDULQJ IRUPDOO\RULQIRUPDOO\ RUXSGDWLQJWKH
VLJQDOUXQQLQJHVWLPDWH
• 3ODQQLQJ3URGXFWV
• 8SGDWHGUXQQLQJHVWLPDWHV
• 6WDIIFROODERUDWLRQSODQ

ƒ 3HUIRUPDQ,QLWLDO$VVHVVPHQW 0&6$6$6/ 
• $%&63ODQQLQJ$FWLRQV
•3HUIRUPDTXLFNLQLWLDODVVHVVPHQW
•'HWHUPLQHWKHWLPHDYDLODEOHIURPPLVVLRQUHFHLSWWRPLVVLRQ
H[HFXWLRQ
• 'HWHUPLQHWKHWLPHQHHGHGWRSODQSUHSDUHIRUDQGH[HFXWHWKHPLVVLRQ
IRU+4DQGVXERUGLQDWHXQLWV
• 'HYHORSDVWDIIWLPHOLQHXVLQJUHYHUVHSODQQLQJ
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
 ! 
• 'HWHUPLQHWKHFXUUHQW,3%SURGXFWVDYDLODEOH
• 'HWHUPLQHUXQQLQJHVWLPDWHVDOUHDG\FXUUHQWDQGWKRVHWKDWQHHG
XSGDWLQJ
• 6&RRUGLQDWLRQZLWK++46HOHPHQWV
• $VVHWVDQGUHTXLUHPHQWV
• 1HWZRUNDUFKLWHFWXUH&206(&VSHFWUXPPDQDJHPHQW
• 3RVVLEOHUHWUDQVFROORFDWLRQ
• 23&21V\VWHPV
• 3ODQQLQJ3URGXFWV
• $2DVVHVVPHQW
• ,QLWLDORSHUDWLRQDOWLPHOLQHDVVHVVPHQW
• $OORFDWHGSODQQLQJWLPH

ƒ ,VVXH&RPPDQGHU¶V,QLWLDO*XLGDQFH 0&6$6$6/ 
• $%&63ODQQLQJ$FWLRQV
• ,VVXHLQLWLDOJXLGDQFH*XLGDQFHLQFOXGHV
• ,QLWLDORSHUDWLRQDOWLPHOLQH
• )XOO\WUDLQHGVWDIIVWROGKRZWRDEEUHYLDWHWKH0'03,IWKHSURFHVVLV
DEEUHYLDWHGWKHFRPPDQGHUGLUHFWVZKLFKVWHSVDUHHOLPLQDWHGRU
UHGXFHGLQVFRSH
• 1HFHVVDU\FRRUGLQDWLRQWRFRQGXFWWRLQFOXGH/12VWRGLVSDWFK
• 7LPHIRULQLWLDOVXUYHLOODQFHDQGRUUHFRQQDLVVDQFHWREHJLQDXWKRUL]HG
PRYHPHQW WRLQFOXGHSRVLWLRQLQJRI&V\VWHPQRGHV 
• $GGLWLRQDOWDVNVWKHFRPPDQGHUZDQWVWKHVWDIIWRDFFRPSOLVK
• &ROODERUDWLYHSODQQLQJWLPHVDQGORFDWLRQV
• ,QLWLDO,5RU&&,5
• ,65WDVNV
• 3ODQQLQJ3URGXFWV
• &RPPDQGHU¶VLQLWLDOJXLGDQFH
• ,QLWLDORSHUDWLRQDOWLPHOLQH
• $GGLWLRQDOVWDIIWDVNV
• &ROODERUDWLYHSODQQLQJUHTXLUHPHQWV
• ,3%LQSXW
• ,65LQSXW
• ,QLWLDO:$512LQSXW

ƒ ,VVXHWKH,QLWLDO:DUQLQJ2UGHU 0&6 
• $%&63ODQQLQJ$FWLRQV
• 3UHSDUHWKHLQLWLDO:$5127KHLQLWLDO:$512LQFOXGHV
• 7\SHRIRSHUDWLRQWRLQFOXGHWDVNSXUSRVHDQGHQGVWDWH
• *HQHUDOORFDWLRQRIWKHRSHUDWLRQ
• ,QLWLDORSHUDWLRQDOWLPHOLQH
• 7LPHIRUDQ\UHFRQQDLVVDQFHRUVXUYHLOODQFHWREHJLQ
• $Q\PRYHPHQWVWRLQLWLDWH
• $Q\FROODERUDWLYHSODQQLQJVHVVLRQVGLUHFWHGE\WKHFRPPDQGHU
• $SSURYHWKHLQLWLDO:$512
• 3RVWWKHLQLWLDO:$512RQWKH72&+RPH3DJHDQGRUVKDUHGIROGHU
IRUVXSSRUWHGDQGVXSSRUWLQJXQLWVRILPSHQGLQJRSHUDWLRQ 0&6 
• ,QIRUPWKHEDWWOHVWDIIDQGKLJKHUDQGVXERUGLQDWHXQLWVRIWKHORFDWLRQ
RIWKHLQLWLDO:$512IRUWKHLUUHWULHYDODQGXSFRPLQJSODQQLQJ
UHTXLUHPHQWV

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 " 
• &RRUGLQDWHGLVSDWFKRIOLDLVRQSHUVRQQHOLQDFFRUGDQFHZLWKWKH
&RPPDQGHU¶V*XLGDQFH
• 7KH6LVVXHVWKH:$512WRWKHFRPPXQLFDWLRQV
VHFWLRQ V 
• 3ODQQLQJ3URGXFWV
• 7\SHRIRSHUDWLRQDQGORFDWLRQ
• 2SHUDWLRQDOWLPHOLQH
• ,QLWLDO,5RU&&,5
• ,657DVNV
• 0RYHPHQW

0'036WHS±0LVVLRQ$QDO\VLV
ƒ $QDO\]HWKH+LJKHU+HDGTXDUWHUV2UGHU 0&6%&6 
• $%&63ODQQLQJ$FWLRQV
• 'HILQHWKHEDWWOHILHOG
• (VWDEOLVKKRUL]RQWDODQGYHUWLFDOQHVWLQJQRWMXVWIRUPDQHXYHUEXWIRU
DOOZDUILJKWLQJIXQFWLRQV
• (QVXUHEDWWOHVWDIIXQGHUVWDQGLQJRIWKH++4
• (YDOXDWHWKHWKUHDW
• 5HVHDUFKRUGHUWRLGHQWLI\IDFWRUVWKDWZLOODIIHFWRSHUDWLRQDOSODQQLQJ
&RPPDQGHU¶V,QWHQW
0LVVLRQLQFOXGLQJWDVNVFRQVWUDLQWVULVNVDYDLODEOHDVVHWV
DQG$2
&RQFHSWRIRSHUDWLRQLQFOXGLQJWKHGHFHSWLRQSODQ
7LPHOLQHRIPLVVLRQH[HFXWLRQ
0LVVLRQRIDGMDFHQWIURQWDQGUHDUXQLWVWKHLUUHODWLRQVKLSWR
++4DQGWKH%'(SODQV
• 6SXOOVIURP++4RUGHU
• 7DVNRUJDQL]DWLRQ
• 5HSRUWLQJUHTXLUHPHQWV
• ++4FRPPXQLFDWLRQVVXSSRUWDQGDUFKLWHFWXUH
• (QHP\&FDSDELOLW\DQGWKUHDWVWRRXU&
• ++4H[HFXWLRQWLPHOLQH
• &206(&LQIRUPDWLRQ HJNH\VSHULRGFKDQJHFRPSURPLVH
SURFHGXUHV 
• ,$9$UHTXLUHPHQWV
• 6FKHGXOHGQHWZRUNRXWDJHV
• 7DVNV
• 3ODQQLQJ3URGXFWV
• /LVWRI++4RSHUDWLRQDOFRQVWUDLQWVVXSSRUWLQJUHVRXUFHV
UHTXLUHPHQWV
• $QDO\VLVRI$2

ƒ 3HUIRUP,QLWLDO,3% 0&6$6$6/$)$7'6 
• $%&63ODQQLQJ$FWLRQV
• 8VLQJ$6$6DQG$)$7'6
• (QVXUHWKH,3%SURFHVVVXSSRUWVWKHFRPPDQGHUDQGEDWWOHVWDIILQ
GHFLVLRQPDNLQJDQGSURYLGHVHVVHQWLDOGDWDIRUFUHDWLRQRIYDOLG
UXQQLQJHVWLPDWHVDQGDQQH[HV
• 'HILQHWKHEDWWOHILHOG
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
• 'HVFULEHWKHEDWWOHILHOGHIIHFWV
• (YDOXDWHWKHWKUHDW
• 'HWHUPLQH(&2$V
• $QDO\]HWKHWKUHDWDQGWKHHIIHFWVRIWKHHQYLURQPHQWRQWKH%1
• ,GHQWLI\IDFWVDQGDVVXPSWLRQVWKDWGHWHUPLQHWKHPRVWOLNHO\(&2$
• ,GHQWLI\FRQVWUDLQWVRQ&2$V
• ,GHQWLI\JDSVLQLQWHOOLJHQFH
• 'HYHORSWKH0&22
• ,GHQWLI\+97V
• 'HYHORS6$RURSHUDWLRQVRYHUOD\V
• &ROOHFWLQSXWWRGHYHORS,3%WHPSODWHV
• 'HYHORSGRFWULQDOWHPSODWHVGHSLFWLQJKRZWKHWKUHDWRSHUDWHVZKHQ
XQFRQVWUDLQHGE\WKHHIIHFWVRIWKHWHUUDLQ
• 'HYHORSLQLWLDOHYHQWWHPSODWHVIURPWKH6,77(03V
• 'HYHORSLQLWLDOLQWHOOLJHQFHFROOHFWLRQSODQ
• 6XEPLW,5VWRXSGDWHIDFWVDQGYHULI\DVVXPSWLRQV
• (QVXUH,5VDUHFOHDUO\LGHQWLILHGDQG5),VDUHVXEPLWWHG
• 3ODQQLQJ3URGXFWV
• ,QSXWWR,3%WHPSODWH
• $QDO\VLVRIHYHQWWHPSODWH
• 6,77(03
• ,5OLVW
• +97/
• $UHDRIUHVSRQVLELOLW\ $25 WKUHDWDVVHVVPHQW
• 0&22
• ,QIRUPDWLRQJDSV

ƒ 'HWHUPLQH6SHFLILHG,PSOLHGDQG(VVHQWLDO7DVNV 0&6$6$6/ 
• $%&63ODQQLQJ$FWLRQV
• ,GHQWLI\VSHFLILHGWDVNVIURP
6SHFLILFDOO\DVVLJQHGE\++4
3DUDJUDSKWZR  DQGWKUHH  RIWKH++4RUGHURUSODQVDQG
DQQH[HV
6$DQGRSHUDWLRQVRYHUOD\V
• ,GHQWLI\LPSOLHGWDVNVGHULYHGIURPWKH++4RUGHUWKHHQHP\VLWXDWLRQ
DQG&2$DQGWKHWHUUDLQ DQDO\VLVRIWKHGRFWULQDOUHTXLUHPHQWVIRU
HDFKVSHFLILHGWDVNPD\SURYLGHLPSOLHGWDVNV 
• $VVLVWWKHFRPPDQGHULQGHWHUPLQLQJHVVHQWLDOWDVNV
• ([SUHVVVWDWXVRIXQLWVLQFDSDELOLWLHVDQGOLPLWDWLRQV
• 5HFRUGVSHFLILHGLPSOLHGDQGHVVHQWLDOWDVNDQDO\VLVLQUHVSHFWLYH
UXQQLQJHVWLPDWHV
• 3UHVHQWWRWKHFRPPDQGHUDWHQWDWLYHOLVWRIVSHFLILHGLPSOLHGDQG
HVVHQWLDOWDVNVWKDWPXVWEHH[HFXWHGWRDFFRPSOLVKWKHPLVVLRQIRUKLV
DSSURYDO
• ,GHQWLI\DGGLWLRQDOUHVRXUFHVQHHGHGWRDFFRPSOLVKWKHVSHFLILHGDQG
LPSOLHGWDVNV
• 7KH6ZRUNVFROODERUDWLYHO\ZLWKWKHEDWWOHVWDIIWRGHWHUPLQHDOO
FRPPXQLFDWLRQVUHODWHGWDVNV
• 3ODQQLQJ3URGXFWV
• 6SHFLILHGWDVNOLVW
• ,PSOLHGWDVNOLVW
• (VVHQWLDOWDVNOLVW
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
• 8SGDWHGUXQQLQJHVWLPDWHV

ƒ 5HYLHZ$YDLODEOH$VVHWV $OO$%&66\VWHPV 
• $%&63ODQQLQJ$FWLRQV
• ([DPLQHDGGLWLRQVWRGHOHWLRQVIURPFXUUHQWWDVNRUJDQL]DWLRQ
VXSSRUWLQJUHODWLRQVKLSVDQGVWDWXV FXUUHQWFDSDELOLWLHVOLPLWDWLRQV RI
DOOXQLWVDVGHULYHGIURPWKH66HFWLRQ¶V0&6
&RQVLGHUWKHUHODWLRQVKLSEHWZHHQVSHFLILHGDQGLPSOLHGWDVNV
DQGDYDLODEOHDVVHWV
'HWHUPLQHLIWKH\KDYHWKHDVVHWVWRSHUIRUPDOOVSHFLILHGDQG
LPSOLHGWDVNV
,GHQWLI\DGGLWLRQDOUHVRXUFHVQHHGHGIRUPLVVLRQVXFFHVV
%DWWOHVWDIISD\VSDUWLFXODUDWWHQWLRQWRGHYLDWLRQVIURPZKDW
WKHFRPPDQGHUFRQVLGHUVKLVQRUPDOWDVNRUJDQL]DWLRQ
• ,GHQWLI\DVVHWVDQGUHVRXUFHV
• 'HWHUPLQHSURMHFWHGVWDWXVRIDYDLODEOHDVVHWVEDVHGRQIORZRI
UHSODFHPHQWVXSSOLHVSHUVRQQHODQGHTXLSPHQWDQGRSHUDWLRQDO
UHDGLQHVVUDWHXVLQJ%&6
• 5HFRUGDVVHWVDYDLODEOHDQGFRUUHVSRQGLQJFDSDELOLW\LQVWDIIHVWLPDWH
• 5HSRUWVWDWXVRIDQ\XQLWVWKDWPD\RSHUDWHLQWKH%1$2
• &RPSDUHDYDLODEOHDVVHWVDQGUHVRXUFHVZLWKWDVNVWRLGHQWLI\FDSDELOLW\
VKRUWIDOOVDQGDGGLWLRQDOUHVRXUFHVUHTXLUHG
• &RQVLGHUWKHLPSDFWRIDWWDFKPHQWVDQGGHWDFKPHQWVWRWKH%1DQGWKH
RYHUDOOFRPEDWFDSDELOLWLHVRILWVVXERUGLQDWHXQLWV
• 1RWH%DWWOHFDSWDLQGLVSOD\VDQDFFXUDWH&23RUSLFWXUHRIWKH%1¶V
FRPEDWFDSDELOLWLHVLQWKHFRPPDQGLQIRUPDWLRQFHQWHU &,& IRUWKH
FRPPDQGHU 1RWHWKHIROORZLQJ 
)%&%DQGWKH0&6SURYLGHVWKHFRPPDQGHUDQGEDWWOHVWDIID
QHDUUHDOWLPHSLFWXUHRIWKHGLVSRVLWLRQRIWKHXQLWV
RSHUDWLQJLQWKH%1$2
$6$6/SURYLGHVWKHFRPPDQGHUDQGEDWWOHVWDIIWKHFXUUHQWHQHP\
 SLFWXUH
$)$7'6SURYLGHVWKHFRPPDQGHUDQGEDWWOHVWDIIWKHFXUUHQW
ORFDWLRQRIVXSSRUWLQJDUWLOOHU\XQLWVFXUUHQWDPPXQLWLRQ
VWDWXVDQGUDQJHFDSDELOLWLHV
%&6SURYLGHVSURMHFWHGVWDWXVRIDYDLODEOHDVVHWVEDVHGRQIORZRI
UHSODFHPHQWRIVXSSOLHVSHUVRQQHODQGHTXLSPHQWDQG
RSHUDWLRQDOUHDGLQHVVUDWH
• 3ODQQLQJ3URGXFWV
• &ULWLFDODVVHWOLVW
• $GGLWLRQDOUHVRXUFHUHTXLUHPHQWVOLVW
• 3URMHFWHGVWDWXVRIDYDLODEOHDVVHWV
• 8SGDWHGUXQQLQJHVWLPDWHV

ƒ 'HWHUPLQH&RQVWUDLQWV 0&6)%&% 
• $%&63ODQQLQJ$FWLRQV
• ,GHQWLI\WKHKLJKHUFRPPDQGHU
VFRQVWUDLQWVDQGOLPLWDWLRQVWKDWUHVWULFW
IUHHGRPRIPRYHPHQW
• /RFDWHWKHP QRUPDOO\ LQWKHVFKHPHRIPDQHXYHUFRQFHSWRI
RSHUDWLRQVDQGFRRUGLQDWLQJLQVWUXFWLRQV
• 'HWHUPLQH52(52,FRQVWUDLQWV
• ,QLWLDWHPLVVLRQDQDO\VLVZRUNVKHHWV

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  
• 7KH6ZRUNVFROODERUDWLYHO\ZLWKWKHEDWWOHVWDIIWRGHWHUPLQHDOO
FRPPXQLFDWLRQVUHODWHGFRQVWUDLQWV
• 3ODQQLQJ3URGXFWV
• &RQVWUDLQWVOLVW
• &RPSOHWHGPLVVLRQDQDO\VLVZRUNVKHHWV

ƒ ,GHQWLI\&ULWLFDO)DFWVDQG$VVXPSWLRQV $OO$%&66\VWHPV 
• $%&63ODQQLQJ$FWLRQV
• /LVWDOODSSURSULDWHDVVXPSWLRQVUHFHLYHGIURP++4
• 'HYHORSIDFWVDQGDVVXPSWLRQVDERXWDGYHUVDULHVDQGRWKHUVWKH$2
DQGWKHRSHUDWLRQDOHQYLURQPHQW
• ,GHQWLI\WKHLQIRUPDWLRQWKHFRPPDQGHUPD\QHHGWRFRQYHUW
DVVXPSWLRQVLQWRIDFWV
• (QVXUHWKDWDVVXPSWLRQVDUHFOHDUHGZLWK++4DQGDUHFRQVLVWHQWZLWK
WKH++4SODQ
• 6WDWHH[SHFWHGFRQGLWLRQVRYHUZKLFKWKHFRPPDQGHUKDVQRFRQWURO
EXWZKLFKDUHUHOHYDQWWRWKHSODQ
• /LVWFRQGLWLRQVWKDWZRXOGLQYDOLGDWHWKHSODQRULWVFRQFHSWRI
RSHUDWLRQV
• 5HDVVHVVERWKIDFWVDQGDVVXPSWLRQVWKURXJKRXWWKHSODQQLQJSURFHVV
• $VVHVVWKHLPSDFWQHZLQIRUPDWLRQKDVRQDSODQDQG&2$VZKHQD
IDFWLVQRORQJHUWUXHRUDQDVVXPSWLRQLVQRORQJHUYDOLG
• 7KH6ZRUNVFROODERUDWLYHO\ZLWKWKHEDWWOHVWDIIWRGHWHUPLQHDOO
FRPPXQLFDWLRQVUHODWHGFULWLFDOWDVNVDQGDVVXPSWLRQV
• 3ODQQLQJ3URGXFWV
• /LVWRIIDFWVDQGDVVXPSWLRQV
• ,QSXWWRWKHLQLWLDO,653ODQ

ƒ 3HUIRUP5LVN$VVHVVPHQW 0&6$6$6/ 
• $%&63ODQQLQJ$FWLRQV
• ,QIRUPVWDIISHUVRQQHORIWKHFRPPDQGHU
VLQLWLDODVVHVVPHQWRIZKHUH
KHPD\WDNHWDFWLFDOULVNV
• ,GHQWLI\WKHKD]DUGVWKDWPD\EHHQFRXQWHUHGGXULQJRSHUDWLRQVDQG
WKHLULPSDFW
• $VVHVVULVNVWKURXJKRXWWKHSODQQLQJDQGRSHUDWLRQVSURFHVVZLWKDULVN
OHYHOIRUHDFKKD]DUG
• &RPELQHULVNDVVHVVPHQWZLWKWKH236(&SURFHVVYXOQHUDELOLW\
DVVHVVPHQWVDQGLQWHOOLJHQFHSURGXFWV
• 3UHSDUHUHFRPPHQGHGFRQWUROVIRUULVNVDVVRFLDWHGZLWKRSHUDWLRQDO
WDVNV
• 7KH6ZRUNVFROODERUDWLYHO\ZLWKWKHEDWWOHVWDIIWRGHWHUPLQHDOO
FRPPXQLFDWLRQVUHODWHGULVNV
• 3ODQQLQJ3URGXFWV
• 5LVNDVVHVVPHQW
• )RUFHSURWHFWLRQLVVXHV
• &XOWXUDOLVVXHV
• /RFDOSRSXODFHLVVXHV
• (QYLURQPHQWDOLVVXHV
• &RDOLWLRQLVVXHV

ƒ 'HWHUPLQH,QLWLDO&&,5DQG((), $OO$%&66\VWHPV 
• $%&63ODQQLQJ$FWLRQV
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
• 'HWHUPLQHLQIRUPDWLRQWKH&RPPDQGHUQHHGVWRVXSSRUWKLV
EDWWOHILHOGYLVXDOL]DWLRQWRGHWHUPLQHRUYDOLGDWH&2$V
• )LOWHULQIRUPDWLRQDYDLODEOHWRWKHFRPPDQGHUE\GHILQLQJZKDWLV
LPSRUWDQWWRPLVVLRQDFFRPSOLVKPHQW
• )RFXVWKHHIIRUWVRIVXERUGLQDWHVDQGEDWWOHVWDIISHUVRQQHOE\DVVLVWLQJ
LQDOORFDWLRQRIUHVRXUFHVDQGPDNLQJUHFRPPHQGDWLRQV
• 1RPLQDWH,5VWREHFRPH&&,5
• &RQWLQXRXVO\UHYLHZWKH&&,5GXULQJWKHSODQQLQJSURFHVVDQGDGMXVW
WKHPDVVLWXDWLRQVFKDQJH
• 'HWHUPLQHWKHPRVWWLPHVHQVLWLYH&&,5
• ,GHQWLI\DQGQRPLQDWHHVVHQWLDOHOHPHQWVRIIULHQGO\LQIRUPDWLRQ
((), 
• 3ODQQLQJ3URGXFWV
• 5HFRPPHQGHG&&,5OLVW
• 5HFRPPHQGHG((),
• 3,5DQG,5PRGLILFDWLRQV

ƒ &RPSOHWH5XQQLQJ(VWLPDWHV 0&6%&6 
• 7KHVWDII WRLQFOXGHWKH6 FRPSOHWHVUXQQLQJHVWLPDWHVLQ
DVPXFKGHWDLODVSRVVLEOH
• 7KH6HVWLPDWHZLOOEHFRPHWKHEDVLVIRUIRUPLQJDYLDEOH
FRPPXQLFDWLRQVVXSSRUWSODQDQG$QQH[+
• 7KH6FRQVLGHUVSUHOLPLQDU\PLVVLRQUHTXLUHPHQWVIRUDOO
FRPPXQLFDWLRQVV\VWHPVDQGSHUVRQQHOZLWKLQWKHXQLW
• (VWLPDWHLVQRWVWDWLFDQGUHTXLUHVFRQVWDQWXSGDWH
• 1HZIDFWVDQGFKDQJHV HTXLSPHQWSHUVRQQHOQHWZRUNVWDWXV 
• 1HZDVVXPSWLRQV
• $QVZHUHG5),V
• 8SGDWHGLQIRUPDWLRQRQWKHWKUHDW
• 1HZUHTXLUHPHQWV
• $GMXVWHGEDVHGRQZDUJDPLQJRXWFRPHVDQG&2$GHYHORSPHQW
• 6HHVHFWLRQRQ(VWLPDWHVLQ3DUW6HFWLRQIRUPRUHGHWDLOV

ƒ 'HWHUPLQHWKH,QLWLDO,653ODQ 0&6$6$6/ 
• $%&63ODQQLQJ$FWLRQV
• 8VLQJ$6$6LQSXW
• ,GHQWLI\JDSVLQLQIRUPDWLRQQHHGHGWRVXSSRUWRSHUDWLRQDOSODQQLQJDQG
WRVXSSRUWH[HFXWLRQDQGDVVHVVPHQWRIHDUO\LQLWLDWLRQDFWLRQV
• 'HYHORS,65WDVNOLVW
• 'HYHORSDQLQLWLDO,653ODQ
• 3URYLGH,653ODQWRWKH6IRUGHYHORSPHQWRIWKHUHFRQQDLVVDQFH
RUGHUDQGLQFRUSRUDWHDGGLWLRQDOLQIRUPDWLRQDVLWEHFRPHVDYDLODEOH
• 8SGDWHWDVNLQJVWRUHFRQQDLVVDQFHDVVHWVWRUHIOHFWQHZ&&,5DQG
DGMXVWPHQWVWRWKH%1¶VSODQQLQJDQGH[HFXWLRQWLPHOLQHV
• 'HYHORSREWDLQPLQLPXP,653ODQLQSXWDVLGHQWLILHGLQ)03DUD

• 3ODQQLQJ3URGXFWV
• )LQDOOLVWRI,5VIRULQFOXVLRQLQWKHLQLWLDO,65$QQH[
• ,65WDVNOLVW
• ,QLWLDO,653ODQ

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  
ƒ 8SGDWHWKH2SHUDWLRQDO7LPH/LQH 0&6$6$6/ 
• $%&63ODQQLQJ$FWLRQV
• 5HILQHWKHLQLWLDOSODQIRUXVHRIDYDLODEOHWLPHE\FRPSDULQJWLPH
QHHGHGWRDFFRPSOLVKHVVHQWLDOWDVNVWRWKH++4WLPHOLQHWRHQVXUH
PLVVLRQDFFRPSOLVKPHQWLVSRVVLEOHLQWKHDOORWWHGWLPH
• 6SHFLI\WKHOHDGWLPHLWHPVDVVRFLDWHGZLWKRSHUDWLRQDOWDVNV
• &RPSDUHWLPHDYDLODEOHWRDFFRPSOLVKRSHUDWLRQDOWDVNVZLWKWKH
FRPPDQGDQGDGYHUVDU\WLPHOLQHVDQGUHYLVHSODQQLQJWLPHDOORFDWLRQ
• 'HWHUPLQHZLQGRZVRIRSSRUWXQLW\IRUH[SORLWDWLRQRIWLPHVZKHQWKH
%1ZLOOEHDWULVNIRUHQHP\DFWLYLW\
• 3ODQQLQJ3URGXFWV
• 5HYLVHGRSHUDWLRQDOWLPHOLQH

ƒ :ULWHWKH5HVWDWHG0LVVLRQ 0&6 
• $%&63ODQQLQJ$FWLRQV
• (QVXUHDOOVWDIIDQGVXERUGLQDWHDQGDWWDFKHGHOHPHQWVUHFHLYHDQG
XQGHUVWDQGWKHPLVVLRQVWDWHPHQW
• (QVXUHUHVWDWHGPLVVLRQFRQWDLQVDOOHOHPHQWVRIDPLVVLRQVWDWHPHQW
DQGLQFOXGHV2Q2UGHU 22 PLVVLRQV
• &RPSOHWHPLVVLRQDQDO\VLVZRUNVKHHWV
• 3ODQQLQJ3URGXFWV
• 'UDIWUHVWDWHGPLVVLRQ
• 0LVVLRQDQDO\VLVZRUNVKHHWV
• 22PLVVLRQOLVW

ƒ 'HOLYHUD0LVVLRQ$QDO\VLV%ULHILQJ $OO$%&66\VWHPV 
• $%&63ODQQLQJ$FWLRQV EULHILQJLQFOXGHVWKHIROORZLQJ 
• ++4PLVVLRQDQGKLJKHU&RPPDQGHU¶V,QWHQWWZROHYHOVXS
• &RQFHSWRIWKHRSHUDWLRQDQGGHFHSWLRQSODQRIWKH++4RQHOHYHOXS
• &RPPDQGHU
V,QLWLDO*XLGDQFH
• &RPELQHG2EVWDFOH2YHUOD\ &22 0&22 $6$6 
• 0DQHXYHUFRUULGRUVDYHQXHVRIDSSURDFK
• 7HUUDLQSURGXFWV7(55$%$6( $6$6 
• 6,77(03(9(17(03'RFWULQDO7HPSODWH
• 1$,V7$,V
• &RQVWUDLQWVDQGOLPLWDWLRQVRQWKHRSHUDWLRQ
• )RUFHVDYDLODEOH
• 3RVVLEOHKD]DUGVDQGWKHLUULVNV
• 5HFRPPHQGHGLQLWLDO&&,5
• 3URSRVHGSODQQLQJDQGH[HFXWLRQWLPHOLQHV
• (VVHQWLDOILUHVXSSRUWWDVNV ()67 
• )LUHVXSSRUWDVVHWVDYDLODEOHDQGSURMHFWHGVWDWXV
• 6FKHPHRIILUHVLPSDFWVRQ%1DQGLPSRVHGFRQVWUDLQWVRUUHVWULFWLRQV
RQWKH%1)63ODQ
• )LUHVXSSRUWFRRUGLQDWLRQPHDVXUHV )6&0 DSSOLFDEOHLQWKH$2
• )LUHVWDVNVSXUSRVHPHWKRGDQGHIIHFWV
• 5HOHYDQWJHRVSDWLDODQGHQJLQHHULQIRUPDWLRQ
• $'$DYDLODEOHFRPEDWSRZHU FXUUHQWDQGSURMHFWHG 
• (DUO\ZDUQLQJFRYHUDJHLQWKH%1$2
• )DFWVDVVXPSWLRQVRUSRVVLEOHULVNVSHUWDLQLQJWRDLUGHIHQVH
• &RPEDWSRZHURIXQLWV FXUUHQWDQGSURMHFWHG 
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
• 6XSSO\VWDWXVFULWLFDOWRIXUWKHUSODQQLQJ FRQWUROOHGVXSSO\UDWH
&65 HWF 
• )DFWVDQGDVVXPSWLRQVDERXWORJLVWLFVQHHGHGIRUIXUWKHUSODQQLQJ
• 5HVWDWHGPLVVLRQ
• 3ODQQLQJ3URGXFWV
• $SSURYHGUHVWDWHGPLVVLRQDQG&RPPDQGHU¶V,QWHQW

ƒ $SSURYHWKH5HVWDWHG0LVVLRQ $OO$%&66\VWHPV 
• $%&63ODQQLQJ$FWLRQV
• (QVXUHDOOVWDIIDQGVXERUGLQDWHDQGDWWDFKHGHOHPHQWVUHFHLYHDQG
XQGHUVWDQGWKHDSSURYHGPLVVLRQVWDWHPHQW
• 3ODQQLQJ3URGXFWV
• $SSURYHGUHVWDWHGPLVVLRQ

ƒ 'HYHORSWKH,QLWLDO&RPPDQGHU¶V,QWHQW $OO$%&66\VWHPV 
• $%&63ODQQLQJ$FWLRQV
• 5HYLHZRSHUDWLRQDOWDVNUHTXLUHPHQWVZLWKWKH&RPPDQGHU¶V,QWHQW
• 0RGLI\&RPPDQGHU¶V,QWHQWVWDWHPHQWDIWHUUHYLHZLQJWKHPLVVLRQ
DQDO\VLVEULHILQJDQGWKHUHVWDWHGPLVVLRQ
• (QVXUHXQGHUVWDQGLQJE\VXERUGLQDWHVWZROHYHOVGRZQ
• 3ODQQLQJ3URGXFWV
• ,QLWLDO&RPPDQGHU¶V,QWHQW

ƒ ,VVXH&RPPDQGHU¶V3ODQQLQJ*XLGDQFH $OO$%&66\VWHPV 
• $%&63ODQQLQJ$FWLRQV
• 5HYLHZ&RPPDQGHU¶V*XLGDQFHIRULQFOXVLRQRIVXEMHFWVDGGUHVVHGLQ
SDUDJUDSK)0
• 3ODQQLQJ3URGXFWV
• &RPPDQGHU¶V3ODQQLQJ*XLGDQFH
• 6LQIRUPDWLRQJOHDQHGIURP&RPPDQGHU¶V3ODQQLQJ
*XLGDQFH
• &3ORFDWLRQDQGPRYHPHQW
• &RPPDQGHU¶VORFDWLRQGXULQJWKHILJKW
• 3ULRULW\RIFRPPXQLFDWLRQV
• *XLGDQFHIRUVHFXULW\IRUWKH&QRGHV

ƒ ,VVXHD:$512 $OO$%&66\VWHPV 
• $%&63ODQQLQJ$FWLRQV
• 5HYLHZ:$512IRULQFOXVLRQRIVXEMHFWVDGGUHVVHGLQSDUDJUDSK
)0
• 3ODQQLQJ3URGXFWV
• :$512

ƒ 5HYLHZ)DFWVDQG$VVXPSWLRQV $OO$%&66\VWHPV 
• $%&63ODQQLQJ$FWLRQV
• 0DLQWDLQDUHFRUGRIIDFWVDQGDVVXPSWLRQV
• $VVHVVDQGXSGDWHIDFWVDQGDVVXPSWLRQV
• 6VSHFLILFIDFWVDQGDVVXPSWLRQV
• &RPPXQLFDWLRQVPDLQWHQDQFHVWDWXV
• $YDLODELOLW\RIUHSODFHPHQWSDUWVV\VWHPV
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
• &RPPXQLFDWLRQVVXSSRUWUHTXLUHPHQWV
• 7HFKQLFDOOLPLWDWLRQV HJUDQJHZHDWKHU(:EDQGZLGWKHWF OLVWHG
DVDVVXPSWLRQV
• 6XEPLW5),VDVRWKHUXQLWVPD\KDYHWKLVLQIRUPDWLRQ
• &RPPXQLFDWLRQVGHDGVSDFH
• 3ODQQLQJ3URGXFWV
• 8SGDWHGOLVWRIIDFWVDQGDVVXPSWLRQV
• :$512

ƒ $GGLWLRQDOO\WKH6FRRUGLQDWHVZLWKRWKHUVWDIIHOHPHQWVDVIROORZV
• &RRUGLQDWHZLWK66RQ
• /RFDWLRQRI%6$
• 0DLQWHQDQFHVXSSRUWSULRULWLHV
• 0DQLIHVWRIVLJQDOHTXLSPHQWLQ0RYHPHQW3ODQ
• 0('(9$&FRPPXQLFDWLRQSODQ
• ,GHQWLI\NH\VLJQDO026VKRUWDJHV
• &RRUGLQDWHZLWK6RQ
• (QHP\FRPPXQLFDWLRQVDFWLYLWLHVORFDWLRQVREVWDFOHVHWFLQUHODWLRQ
WR&IDFLOLWLHV
• 7HUUDLQDQDO\VLV *212*2DIIHFWRQUDGLRVLJQDOVOLQHRIVLJKW
/26 DQDO\VLV 
• /RFDWLRQRILQWHOOLJHQFHDVVHWV
• ,653ODQ
• 5HYHUVH:))SODQQLQJ
• 5HVXOWVRIVLJQDO2$.2&DQDO\VLV
• 'HYHORSPHQWRIWKH0&22DQG$QQH[%
• (YDOXDWLRQRIWKUHDW&FDSDELOLWLHVDQGYXOQHUDELOLWLHV
• &RRUGLQDWHZLWK6RQ
• &IDFLOLWLHVORFDWLRQV
• .H\FRPPXQLFDWLRQVHYHQWVRQ([HFXWLRQ0DWUL[
• &QRGHPRYHPHQW
• 6HFXULW\DQGWKHTXLFNUHDFWLRQIRUFH 45) 
• &$6(9$&IRUFRPPXQLFDWLRQVWHDPV
• &RRUGLQDWHZLWKILUHDQGHIIHFWVVXSSRUWHOHPHQWVRQ
• 12),5(DUHDVDURXQGUHWUDQV
• 5DGDUDQG$'$ORFDWLRQVIRUSRVVLEOHFROORFDWLRQRIUHWUDQVDQG/26
WUDQVSRUW
• &RRUGLQDWHZLWKHQJLQHHUHOHPHQWVRQ
• 'LJLWDO7RSRJUDSKLF6XSSRUW6\VWHP '766 
• $YDLODELOLW\RIVXUYLYDELOLW\DVVHWVIRUFRPPXQLFDWLRQVVLWHVHVSHFLDOO\
ORQJWHUPRUIL[HGVLWHV

0'036WHS±&RXUVHRI$FWLRQ'HYHORSPHQW
ƒ $QDO\]H5HODWLYH&RPEDW3RZHU 0&6$6$6/%&6 
• $%&63ODQQLQJ$FWLRQV
• &RQVLGHU&RPPDQGHUHIIHFWVJXLGDQFHDORQJZLWKWKHRWKHUHOHPHQWVRI
FRPEDWSRZHU
• ,QWHJUDWHWKHHIIHFWVRIWKHVHHOHPHQWVZLWKRWKHUSRWHQWLDOFRPEDW
PXOWLSOLHUVDQGDYDLODEOHDVVHWVRIRWKHU6HUYLFHVDJDLQVWWKHHQHP\

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
   
• $QDO\]HIRUFHUDWLRVDQGGHWHUPLQHHDFKIRUFH
VVWUHQJWKDQG
ZHDNQHVVHVDVDIXQFWLRQRIFRPEDWSRZHU
• &RQVLGHULQWDQJLEOHIDFWRUV PRUDOHWUDLQLQJOHYHOV ZKHQDQDO\]LQJ
UHODWLYHFRPEDWSRZHU
• 'HWHUPLQHFDSDELOLWLHVWKDWDSSO\WRDVVLJQHGPLVVLRQV
• &RPSDUH%1FDSDELOLWLHVZLWKWKUHDWYXOQHUDELOLWLHV
• ,GHQWLI\+1DQGPXOWLQDWLRQDOUHVRXUFHV
• *DLQLQVLJKWLQWRIULHQGO\FDSDELOLWLHVWKDWSHUWDLQWRWKHRSHUDWLRQW\SH
RIRSHUDWLRQWKDWPD\EHSRVVLEOHIURPIULHQGO\DQGHQHP\
SHUVSHFWLYHVKRZDQGZKHQWKHHQHP\PD\EHYXOQHUDEOHDQGWKH
DGGLWLRQDOUHVRXUFHVWKDWPD\EHUHTXLUHGWRH[HFXWHWKHPLVVLRQ
• ,PSOHPHQWKLVWRULFDOPLQLPXPSODQQLQJUDWLRVIRUYDULRXVFRPEDW
PLVVLRQVDQGFRQVLGHUWHUUDLQDQGHQHP\WHPSODWLQJDVVXPSWLRQV
• 3ODQQLQJ3URGXFWV
• $GGLWLRQDOUHVRXUFHUHTXLUHPHQWV
• 7KUHDWYXOQHUDELOLWLHV
• 5HVRXUFHDOORFDWLRQSODQ
• )RUFHUDWLRV

ƒ *HQHUDWH2SWLRQV $OO$%&66\VWHPV 
• $%&63ODQQLQJ$FWLRQV
• 5HYLHZ&RPPDQGHU¶V*XLGDQFHIRUGHVLUHGHIIHFWV
• 'HWHUPLQHKRZWKHDGYDQWDJHVDQGGLVDGYDQWDJHVRIPLVVLRQWDVNV
LPSDFWHDFKSRVVLEOH&2$
• 'HWHUPLQH&2$VWKDWDUHQRWIHDVLEOHDQGZKDWLQIRUPDWLRQPLJKW
DIIHFWRWKHUVWDIIPHPEHU
VDQDO\VLV
• 'HWHUPLQHLIWKHSXUSRVHRIWKH&2$VDWLVILHVWKH&2$VHOHFWLRQ
FULWHULDE\FKDQJLQJDGGLQJRUHOLPLQDWLQJ&2$V
• 'HWHUPLQHWKHLPSDFWRI52(DQGUXOHVRILQWHUDFWLRQ 52, RQ
SRVVLEOH&2$V
• 'HWHUPLQHWKHSXUSRVHRIWKHPDLQDQGVXSSRUWLQJHIIRUW
• 5HYLHZWKHGHFLVLYHRSHUDWLRQIURPWKH&RPPDQGHU¶V*XLGDQFHDQG
GHWHUPLQHKRZWRPDVVFRPEDWSRZHUWRDFKLHYHLWVSXUSRVH
• ([SORUHVKDSLQJDQGVXVWDLQLQJRSHUDWLRQVDQGWKHLULPSDFWRQWKH
GHFLVLYHRSHUDWLRQ
• ,GHQWLI\WKHGRFWULQDOUHTXLUHPHQWVRIHDFKW\SHRIRSHUDWLRQXQGHU
FRQVLGHUDWLRQWRLQFOXGHGRFWULQDOWDVNVWREHDVVLJQHGWRVXERUGLQDWH
XQLWV
• 3ODQQLQJ3URGXFWV
• $GYDQWDJHVDQGGLVDGYDQWDJHVOLVWIRUHDFK&2$
• 5HILQHG+97/
• (VVHQWLDOWDVNOLVWIRUPDLQDQGVXSSRUWLQJHIIRUWV

ƒ $UUD\,QLWLDO)RUFHV 0&6$6$6/%&6 
• $%&63ODQQLQJ$FWLRQV
• 'HWHUPLQHIRUFHVQHFHVVDU\WRDFFRPSOLVKWKHPLVVLRQDQGSURYLGHD
EDVLVIRUWKHVFKHPHRIPDQHXYHU
• 'HWHUPLQHUDWLRRIIULHQGO\WRHQHP\XQLWVUHTXLUHGIRUHDFKWDVN
VWDUWLQJZLWKWKHPDLQHIIRUWDQGFRQWLQXLQJWKURXJKDOOVXSSRUWLQJ
HIIRUWV
• &RQVLGHUWKHLPSDFWRIDYDLODEOHDVVHWVUHVRXUFHVRQIRUFHUDWLRV
GXULQJGHWHUPLQDWLRQRILQLWLDOIRUFHDUUD\

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 ! 
• $QDO\]HWKHHQWLUHEDWWOHILHOGIUDPHZRUNWRLQFOXGHWKHGHHS
FORVHDQGUHDUEDWWOHV
• 5HYLHZWKHFXUUHQWWDVNRUJDQL]DWLRQWRVHHLIFKDQJHVDUHQHFHVVDU\
• 'HWHUPLQHDSURSRVHGIRUZDUGHGJHRIWKHEDWWOHDUHD )(%$ IRUD
GHIHQVHRUDOLQHRIGHSDUWXUH /' OLQHRIFRQWDFW /& 
• 9DOLGDWHWKHDOORFDWLRQRIIRUFHVEDVHGRQWKH,653ODQDQGWKHLQLWLDO
WHUUDLQDQDO\VLV
• 'HYHORSWKHLQLWLDODUUD\RIIULHQGO\IRUFHVVWDUWLQJZLWKWKHPDLQHIIRUW
DWWKHGHFLVLYHSRLQWDQGFRQWLQXLQJWKURXJKVXSSRUWLQJHIIRUW
• ,GHQWLI\WKHSRVVLEOHUHTXLUHPHQWIRUDGGLWLRQDOUHVRXUFHVDVDVKRUWIDOO
,IWKHQXPEHUDUUD\HGLVQRWDGHTXDWHWKHEDWWOHVWDIIUHFRPPHQGV
ZKHUHWRDFFHSWULVN 
• 3ODQQLQJ3URGXFWV
• )RUFHUDWLRV
• ,QLWLDODUUD\RIIULHQGO\IRUFHV
• 5HYLVHGWDVNRUJDQL]DWLRQ
• 5LVNDVVHVVPHQW

ƒ 'HYHORSWKH&RQFHSWRI2SHUDWLRQV 0&6$6$6/$)$7'6 
• $%&63ODQQLQJ$FWLRQV
• 5HILQHWKHLQLWLDODUUD\RIIRUFHV
• 'LVSOD\JUDSKLFDOFRQWUROPHDVXUHVWRFRRUGLQDWHWKHRSHUDWLRQDQG
VKRZWKHUHODWLRQVKLSRIIULHQGO\IRUFHVWRRQHDQRWKHUWKHHQHP\DQG
WHUUDLQ
• 5HHYDOXDWHWKHWHUUDLQDQGWKHHQHP\
• 3URYLGHVSDFHRQWKHIODQNVRIHDFKDYHQXHRIDSSURDFKWRDOORZ
PDQHXYHUDQGILUHV
• $OORFDWHDQ\IRUFHVUHPDLQLQJIURPWKHLQLWLDODUUD\WRZHLJKWWKH
GHFLVLYHRSHUDWLRQ
• 5HILQHWKHWDUJHWLQJHIIRUWZLWKLQWKH,653ODQ
• &RUUHODWHWKH&RPPDQGHU¶VGHVLUHGHQGVWDWHZLWKGHVLUHGHIIHFWVDQG
FULWHULDRIVXFFHVV
• &RUUHODWHPLVVLRQDQGLQWHQWZLWKPLVVLRQWDVNVDQGHVWDEOLVKHGVXFFHVV
FULWHULD
• 'HYHORSDGLVWLQFWFRQFHSWRIILUHVXSSRUWDQGHIIHFWVREMHFWLYHVIRU
HDFK&2$
• 3ULRULWL]HWKH+37/
• 'HWHUPLQHWKHLPSDFWVRIIRUFHSURWHFWLRQUHTXLUHPHQWV
• 'HWHUPLQHWKHLPSDFWRIFLYLOPLOLWDU\RSHUDWLRQV &02 +1
JRYHUQPHQWDQGWKHVRFLDODQGSROLWLFDOEDFNJURXQGRIWKHFRXQWU\DQG
SHRSOH
• 'HYHORSRUUHILQHSURGXFWVWRVXSSRUWHDFK&2$WKHVWDIIGHYHORSVDQG
SUHSDUHIRUZDUJDPLQJ
• &RQVLGHUFRQFHSWRIRSHUDWLRQVWRSLFVLGHQWLILHGLQ3DUD)0
• 7KH6PXVWGHYHORSDFOHDUFRQFHSWRIVLJQDOVXSSRUWIRU
HDFK&2$GHYHORSHG)RUHDFKVLJQDOFRQFHSWWKH6VKRXOG
SHUIRUPWKHIROORZLQJ
• ,GHQWLI\VLJQDOVXSSRUWFRQFHSWIRUWKHVFKHPHRIPDQHXYHUWRLQFOXGH
SULPDU\DOWHUQDWHFRQWLQJHQF\DQGHPHUJHQF\ 3$&( V\VWHPV
VXSSRUWLQJFULWLFDO&QHWZRUNVWRLQFOXGHKLJKHUDQGORZHU
• (VWDEOLVKDSODQIRUH[WHQGLQJFRPPXQLFDWLRQVWKURXJKHDFKSKDVHRI
WKHRSHUDWLRQ HJORQJKDXO(3/56QHDUWHUPGLJLWDOUDGLR 17'5 
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
 " 
UHWUDQVSODQQHWZRUNWUDQVSRUWWULJJHUVIRUPRYHPHQWRI&
QRGHVDQGV\VWHPVHFKHORQPHQWRI&QRGHV 
• 5HFRPPHQGIXWXUH&3 72&7$& ORFDWLRQVEDVHGRQ
FRPPXQLFDWLRQVUHTXLUHPHQWVDQGWKHWDFWLFDOVLWXDWLRQ
• 5HVSRQVLEOHIRUWKH&([HFXWLRQ0DWUL[
• ,GHQWLI\OLPLWDWLRQVRIRUJDQLFVLJQDOVXSSRUWDVVHWV
• 'HYHORSWLPHGLVWDQFHRI&QRGHPRYHPHQWDQGVHWXS
• 6XSSRUWWDVNVSHUIRUPHGE\QRQVLJQDOXQLWV
• (VWDEOLVKVLJQDOVXSSRUWSULRULWLHV HJZHLJKWWKHPDLQHIIRUWDQG
SURYLGHUHGXQGDQF\GXULQJFULWLFDOWLPHV 
• &RPPXQLFDWLRQV0DLQWHQDQFH&RQWDFW7HDPV ORFDWLRQSULRULW\
FDSDELOLWLHV3//GLVWULEXWLRQDQGPDQDJHPHQW 
• ,GHQWLI\DSULPDU\DQGDOWHUQDWHQHWFRQWUROVWDWLRQ 1&6 IRUHDFK
QHWZRUN ZKRFRQWUROVZKRPRQLWRUVGDWDQHWZRUNV 

&([HFXWLRQ0DWUL[

&200$1'
 

&200$1' $/7 ',63/$&(0(17

(/(0(17 /2&$7,21 /2&$7,21 75,**(5 2,& 
&0'*53

7$& 

72& 

68&&(66,212)&200$1'
 

6,*1$/


$17,-$03/$1
$/7)5(41(7 $/7)5(41(7

(9(17 1(7 )5(41(7,' ,' ,' 


62,,1'(;180%(5'7* 
)0, 


%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

• 3ODQQLQJ3URGXFWV
• 2SHUDWLRQFRQFHSWRIHQJDJHPHQW
• 2SHUDWLRQREMHFWLYHV
• )RUFHVDUUD\
• 0HDVXUHVRISHUIRUPDQFH 023 DQGPHDVXUHVRIHIIHFWLYHQHVV 02( 
DVVHVVPHQWDQGWUHQGVZRUNVKHHWV
• 6\QFKURQL]DWLRQPDWUL[
• 7DUJHWQRPLQDWLRQV +97/UHFRPPHQGHG+37/ 
• 3ULRULWL]HG+37/
• 3,5DQG,5PRGLILFDWLRQV
• &ROOHFWLRQHPSKDVLV
• &RQFHSWRIILUHV
• $2DVVLJQPHQWV
• 'HVLJQDWLRQRIVKDSLQJDQGVXVWDLQLQJRSHUDWLRQV
• 6HOHFWHGFRQWUROPHDVXUHV JUDSKLFV 
• 5LVNDVVHVVPHQW
• &WULJJHUV

ƒ $VVLJQ+HDGTXDUWHUV 0&6%&6 
• $%&63ODQQLQJ$FWLRQV
• ,GHQWLI\XQLWVWRSHUIRUPPLVVLRQWDVNVDQGVSDQRIFRQWURO
• &UHDWHDSURSRVHGWDVNRUJDQL]DWLRQ
• 2UJDQL]HWDVNVE\DYDLODEOHUHVRXUFH
• 3ODQQLQJ3URGXFWV
• 3URSRVHGWDVNRUJDQL]DWLRQ
• $VVHWOLVW
• 7DVNOLVW

ƒ 3UHSDUH&2$6WDWHPHQWVDQG6NHWFKHV $)$7'60&6 
• $%&63ODQQLQJ$FWLRQV
• 3URYLGHLQSXWWR&2$VWDWHPHQWVDQGVNHWFKHV
• 'HVFULEHLQWKH&2$VWDWHPHQWKRZWKHXQLWDFFRPSOLVKHVWKHPLVVLRQ
KRZ\RXZLOOH[HFXWHWKHVFKHPHRIPDQHXYHUWKHPLVVLRQHQGVWDWH
DQGEDWWOHILHOGIUDPHZRUN GHHSFORVHDQGUHDU 
• 'LVSOD\WKH&2$VNHWFKWRSURYLGHDSLFWXUHRIWKHPDQHXYHUDVSHFWVRI
WKH&2$WRLQFOXGHPDQPDGHDQGQDWXUDOIHDWXUHV FLWLHVULYHUV
URDGVEULGJHV 
• 'LVSOD\RQWKH&2$VNHWFKWKHDUUD\RIJHQHULFIRUFHVDQGFRQWURO
PHDVXUHV
• 3ODQQLQJ3URGXFWV
• &2$VWDWHPHQWVDQGVNHWFKHV

ƒ &2$%ULHILQJ $OO$%&66\VWHPV 
• $%&63ODQQLQJ$FWLRQV
• 6WDIIEULHILQJWR&RPPDQGHULQFOXGLQJWKHLWHPVOLVWHGLQ3DUD
)0
• &RPPDQGHUJLYHVDGGLWLRQDOJXLGDQFH
• 3ODQQLQJ3URGXFWV
• 5HILQHG&RPPDQGHU¶V*XLGDQFH

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
0'036WHS±&RXUVHRI$FWLRQ$QDO\VLV
ƒ 3HUIRUPWKHIROORZLQJVWHSDFWLRQVXVLQJDOO$%&6V\VWHPV
• *DWKHUWKHWRROV
• /LVWDOOIULHQGO\IRUFHV
• /LVWDVVXPSWLRQV
• /LVWNQRZQFULWLFDOHYHQWVDQGGHFLVLRQSRLQWV
• 'HWHUPLQHHYDOXDWLRQFULWHULDVHOHFWWKHZDUJDPHPHWKRG
• 6HOHFWDPHWKRGWRUHFRUGDQGGLVSOD\UHVXOWV
• :DUJDPHWKHEDWWOHDQGDVVHVVUHVXOWV
ƒ 7KHIROORZLQJ$%&63ODQQLQJ$FWLRQVRFFXUGXULQJZDUJDPLQJ
• *DWKHUWKHWRROV\RXZLOOQHHGWRDGGUHVVZDUJDPLQJPLVVLRQWDVNVDQG
GHVLUHGHIIHFWV
• 8SGDWHUXQQLQJHVWLPDWHV
• 5HYLHZSUHYLRXVDVVXPSWLRQVIRUFRQWLQXHGYDOLGLW\DQGQHFHVVLW\
• 3HUIRUPWKHZDUJDPLQJSURFHVVRQWKH&23RUDQDORJPDSVVDQG
WDEOHVRURWKHUWRROVWKDWDFFXUDWHO\UHIOHFWWKHQDWXUHRIWKHWHUUDLQ
• 3RVWWKH&2$VNHWFKHVRQDPDSGLVSOD\LQJWKH$2
• &RPSOHWH&2$RYHUOD\VDQGVWDWHPHQWV
• 3RVWHQHP\DQGIULHQGO\XQLWV\PEROVRQWKH&23
• /LVWDOOIULHQGO\IRUFHV
• $GGUHVVKRZHDFKXQLWHOHPHQWFRQWULEXWHVWRWKHFRQFHSWRIVXSSRUW
IRUHDFK&2$DQGLWVDVVRFLDWHGWLPHOLQHVFULWLFDOHYHQWVDQGGHFLVLRQ
SRLQWV
• /LVWNQRZQFULWLFDOHYHQWVDQGGHFLVLRQSRLQWVWKDWGLUHFWO\LQIOXHQFH
PLVVLRQDFFRPSOLVKPHQW
• 'HYHORSDOLVWRIGHFLVLRQSRLQWVRIHYHQWVRUORFDWLRQVRQWKHEDWWOHILHOG
ZKHUHWDFWLFDOGHFLVLRQVDUHUHTXLUHGGXULQJPLVVLRQH[HFXWLRQ
• 'HWHUPLQHHYDOXDWLRQFULWHULDEDVHGRQWKH&RPPDQGHU¶V*XLGDQFHWKDW
IRFXVHVRQFULWLFDOWDVNVDQGWKHHQGVWDWH
• 3DUWLFLSDWHLQWKHDFWLRQUHDFWLRQFRXQWHUDFWLRQSURFHVV
• 5HFRUGUHVXOWV
• &RQGXFWWDUJHWYDOXHDQDO\VLV 79$ 
• 8VHH[HFXWLRQPDWULFHVDQGDVVHVVPHQWDQGWUHQGVDQDO\VLVZRUNVKHHWV
IRUHDFK&2$DVLQSXWWRVFULSWVIRUZDUJDPLQJ
• ,GHQWLI\OLNHO\WKUHDWUHVSRQVHV
• 5HILQHVLWXDWLRQDQGHYHQWWHPSODWHV,$:'3V7$,VDQG+97V
• 'HOLQHDWH+37VIURP+97V
• 5HYLHZOLQNDJHRI3,5WR'3V
• $VVHVVVXVWDLPHQWIHDVLELOLW\IRUHDFK&2$
• 5HYLHZHDFK&2$IRUFRPSOLDQFHZLWK52(DQG52,
• 5HILQHHIIHFWV,5VHIIHFWVUHODWHG((),DQG+37VIRUHDFK&2$DQG
V\QFKURQL]HZLWK&2$FRQFHSWRIRSHUDWLRQ
• 5HIHUWR)0IRUGHWDLOHGZDUJDPHDFWLRQVDQGFRQVLGHUDWLRQV
• 'XULQJZDUJDPLQJWKH6SURYLGHVLQSXWIRUWKH
V\QFKURQL]DWLRQPDWUL[ZDUJDPLQJZRUNVKHHWEDVHGRQWKH
VLJQDOHVWLPDWHDQGVXSSRUWSODQ
• 6FRQWLQXHVWRDVVHVVWKH&2$XVLQJ)$'6&FULWHULD6YDOLGDWHV
WKHIHDVLELOLW\RIWKHFRPPXQLFDWLRQVSODQIRUHDFK&2$

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  
• 6LGHQWLILHV&DVVHWVUHTXLUHGWRVXSSRUWWKHVFKHPHRI
PDQHXYHUDQGWKHV\QFKURQL]DWLRQRIVXSSRUWDQGVXVWDLQPHQWHIIRUW
• ,IUHTXLUHPHQWVH[FHHGDVVHWVWKH6VKRXOGUHFRPPHQGWKHSULRULW\RI
XVHEDVHGRQ&RPPDQGHU¶V*XLGDQFHDQGWKHVLWXDWLRQ
• 6SURYLGHVLQSXWFRQFHUQLQJPRYHPHQWRI&3VQHZ&3ORFDWLRQV
ORFDWLRQRIWKH&RPPDQGHUDQGVLJQLILFDQWFRPPXQLFDWLRQVUHODWHG
HYHQWV
• 6GHYHORSVUHFRPPHQGHGVROXWLRQVWRFRPPXQLFDWLRQVGLVDGYDQWDJHV
• 3ODQQLQJ3URGXFWV
• &RQFHSWRIRSHUDWLRQV
• 6\QFKURQL]DWLRQPDWUL[
• 2SHUDWLRQVRYHUOD\
• 'HFLVLRQVXSSRUWWHPSODWH
• 7DVNRUJDQL]DWLRQ
• 6XERUGLQDWHPLVVLRQV
• 8SGDWHG&&,5
• +97/DQG+37/
• 3,5DQG,5PRGLILFDWLRQV
• &ROOHFWLRQHPSKDVLV
• &RQFHSWRIILUHV
• $2DVVLJQPHQWV
• 'HVLJQDWLRQRIVKDSLQJDQGVXVWDLQLQJRSHUDWLRQV
• $GMXVWHG023DQG02(
• 8SGDWHVWR52(DQG52,
• 5LVNDVVHVVPHQW
• 8SGDWHGUXQQLQJHVWLPDWHVWKDWZLOOIRUPWKHEDVLVIRUDQQH[HV

0'036WHS±&RXUVHRI$FWLRQ&RPSDULVRQ
ƒ &RQGXFW&2$&RPSDULVRQ
• $%&63ODQQLQJ$FWLRQV
• 'LVFXVVHDFK&2$LQWHUPVRIWKHFRQFHSWRIHQJDJHPHQWDQGPLVVLRQ
REMHFWLYHVE\ZDUILJKWLQJIXQFWLRQ
• $QDO\]HWKHDGYDQWDJHVDQGGLVDGYDQWDJHVRIHDFK&2$IURPD
ZDUILJKWLQJIXQFWLRQSHUVSHFWLYH
• 'HWHUPLQHWKH&2$WKDWFDQEHVWVXSSRUWWKHPLVVLRQDQGDFKLHYH
GHVLUHGHIIHFWVEDVHGRQWKHHYDOXDWLRQFULWHULDHVWDEOLVKHGGXULQJ
ZDUJDPHSUHSDUDWLRQ
• %DVHGXSRQWKHUHODWLYHLPSRUWDQFHRIHDFKFULWHULRQHVWDEOLVKZHLJKWV
IRUHYDOXDWLRQFULWHULDGHWHUPLQHGGXULQJ&2$GHYHORSPHQW
• &RPSDUH&2$VXVLQJRQHHYDOXDWLRQFULWHULDFDWHJRU\DWDWLPH
• 'HYHORSDGHFLVLRQPDWUL[VKHOODSSOLFDWLRQDQGGLVWULEXWHWRWKHVWDII
• &DOFXODWHDVFRUHIRUHDFK&2$XVLQJWKHGHFLVLRQPDWUL[VKHOOZLWK
HYDOXDWLRQFULWHULDZKLFKKLJKOLJKWV&2$DGYDQWDJHVDQG
GLVDGYDQWDJHVDQGSURYLGHDQDO\VLV
• &RQVROLGDWHVWDIILQSXWRQRQHVWDIIGHFLVLRQPDWUL[
• $QDO\]HGHFLVLRQPDWUL[GDWDWRLGHQWLI\RYHUDOOFURVV:))DGYDQWDJHV
DQGGLVDGYDQWDJHVRI&2$VZLWKUHVSHFWWRHDFKRWKHU
• ,GHQWLI\WKH&2$WKDWKDVWKHKLJKHVWSUREDELOLW\RIVXFFHVVDJDLQVWWKH
PRVWOLNHO\WKUHDWDQGPRVWGDQJHURXV&2$
• &RPSOHWHWKHGHFLVLRQPDWUL[DQGUHYLHZRXWFRPHZLWKWKHVWDII

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  
• 7KH6LGHQWLILHVFRPPXQLFDWLRQVDGYDQWDJHVDQG
GLVDGYDQWDJHVZLWKUHVSHFWWRHDFK&2$7KH6
UHFRPPHQGVVROXWLRQVWRFRPPXQLFDWLRQVGLVDGYDQWDJHVLI
UHTXLUHG7\SLFDO&FULWHULDLQFOXGH EXWDUHQRWOLPLWHGWR 
• 6LPSOLFLW\RI&3ODQ
• &RYHUDJHRIWKHRSHUDWLRQDOHQYLURQPHQWE\)0(3/56QHWV
• 1XPEHURI&QRGHPRYHPHQWVUHTXLUHG
• $YDLODELOLW\RIGDWDVHUYLFHVWKURXJKRXWRSHUDWLRQ
• 3ODQQLQJ3URGXFWV
• &RPSDULVRQUHVXOWV
• 'HFLVLRQPDWUL[
• &2$GHFLVLRQEULHILQJ

0'036WHS±&RXUVHRI$FWLRQ$SSURYDO
ƒ &RQGXFW&2$$SSURYDO
• $%&63ODQQLQJ$FWLRQV
• 3UHSDUHIRUGHFLVLRQEULHILQJ
• &RQGXFW&2$DSSURYDOFRQVLVWLQJRIUHFRPPHQGHG&2$LQDGHFLVLRQ
EULHIFRPPDQGHUGHFLVLRQRQZKLFK&2$WRDSSURYHDQGFRPPDQGHU
LVVXDQFHRIILQDOSODQQLQJJXLGDQFH
• %HSUHSDUHGWRUHILQHPLVVLRQWDVNVWRVXSSRUWDFFRPSOLVKLQJ
&RPPDQGHU¶VGHVLUHGHIIHFWV
• 6\QFKURQL]HDSSURYHG&2$IRUGHYHORSPHQWRIWDVNVIRUVXERUGLQDWH
XQLWV
• ,GHQWLI\LPPHGLDWHRUWLPHVHQVLWLYHUHTXLUHPHQWVHQJDJHPHQWV
• %HSUHSDUHGWRLGHQWLI\&&,53,5((),DQGFROOHFWLRQPRGLILFDWLRQV
• 3URYLGHUHGLUHFWLRQEDVHGRQFKDQJHVLQWKHRSHUDWLRQDOHQYLURQPHQW
• 6HWFRQGLWLRQVIRUQH[WSODQQLQJF\FOH¶VWDUJHWLQJREMHFWLYHV
• ,GHQWLI\SUHIHUUHG&2$DQGPDNHDUHFRPPHQGDWLRQWRWKH
FRPPDQGHU
• 3UHVHQWWKHUHFRPPHQGHGVROXWLRQGXULQJWKHGHFLVLRQEULHIWRWKH
FRPPDQGHU
• &RPPDQGHUVHOHFWVWKH&2$KHEHOLHYHVZLOOEHWKHEHVWWRDFFRPSOLVK
WKHPLVVLRQRUGLUHFWVWKHEDWWOHVWDIIWRUHSHDWWKHSURFHVV
• 3URYLGHLQSXWWR:$512
• &RPPDQGHUGLUHFWVWKHEDWWOHVWDIIWRLVVXHD:$512EDVHGRQWKH
GHFLVLRQEULHIDQGKLVILQDOSODQQLQJJXLGDQFHFRQWDLQLQJWKH
LQIRUPDWLRQVXERUGLQDWHXQLWVQHHGWRUHILQHWKHLUSODQ
• &RPPDQGHULVVXHILQDOSODQQLQJJXLGDQFHWRWKHEDWWOHVWDII
• 3UHSDUHWKHRUGHURUSODQE\WXUQLQJWKHVHOHFWHG&2$LQWRDFOHDU
FRQFLVHFRQFHSWRIRSHUDWLRQVZLWKUHTXLUHGVXSSRUWLQJLQIRUPDWLRQ
• 7KH6EULHIVWKH&RPPDQGHURQ&DQGWKHVLJQDOVXSSRUW
SODQIRUHDFK&2$7KH6LVDOVRSUHSDUHGWRGLVFXVV
DGYDQWDJHVDQGGLVDGYDQWDJHVRIHDFKSODQZLWKUHVSHFWWR
FRPPXQLFDWLRQVDQGSURYLGHUHFRPPHQGHGVROXWLRQV
• 3ODQQLQJ3URGXFWV
• 'HFLVLRQEULHILQJ
• 6HOHFWHG&2$
• &RPPDQGHU¶VILQDOSODQQLQJJXLGDQFH
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
• 8SGDWHG&&,5DQG((),
• 5LVNDVVHVVPHQWDQGPRGLILHGULVNJXLGDQFH
• :$512 6HH)0IRUVWDQGDUGFRQWHQWV 

0'036WHS±2UGHUV3URGXFWLRQ
ƒ 3URGXFHWKH2UGHU
• $%&63ODQQLQJ$FWLRQV
• 5HILQHVWDIIHVWLPDWHVEDVHGRQWKH&RPPDQGHU¶V*XLGDQFH
• 5HYLHZWKHEDVHRUGHUSODQDQGDQQH[HVWRHQVXUHWKH\DUHFRPSOHWH
DQGIROORZWKH&RPPDQGHU¶V*XLGDQFH
• &UHDWHWKH2325'23/$1DQGUHVSHFWLYHVWDIIDQQH[HVDQGSRVWRQ
WKHVKDUHGGULYHXSRQDSSURYDO
• $SSURYHWKH2325'
• 'LVVHPLQDWHWKHEDWWDOLRQ2325'23/$1YLD$%&6LQVXULQJQRQ
GLJLWDOXQLWVUHFHLYHDSSURSULDWHKDUGFRS\SURGXFWV
• &RQGXFWFRQILUPDWLRQEULHILQJVDVDSSURSULDWH
• 7KH6LVUHVSRQVLEOHIRUGUDIWLQJDQGEULHILQJ$QQH[+ &
2SHUDWLRQV DQG3DUDJUDSK &RPPDQGDQG6LJQDO RIWKH
EDVHRUGHU
• 6WDWHPDSFRRUGLQDWHVIRUWKH&3ORFDWLRQVDQGDWOHDVWRQHIXWXUH
ORFDWLRQIRUHDFK
• ,GHQWLI\FKDLQRIFRPPDQGVXFFHVVLRQLIQRWFRYHUHGE\7$&623
• /LVWVLJQDOLQVWUXFWLRQVQRWVSHFLILHGLQ7$&623
• ,GHQWLI\VSHFLILF62,DGGLWLRQLQHIIHFW
• ,GHQWLI\UHTXLUHGUHSRUWVDQGIRUPDWVDVZHOODVVXEPLVVLRQWLPHV
• 7KH6FRPSOHWHV$QQH[+ZKLFKLVDGHWDLOHG
FRPPXQLFDWLRQVSODQQLQJIRUWKHVHOHFWHG&2$
• 3ODQQLQJ3URGXFWV
• 2325'ZLWKDQQH[HV

6HFWLRQ±6DPSOH$%&6%DWWOH'ULOOV

$%$&'(

%DWWOHGULOOVYDU\E\XQLWDQGHFKHORQEXWDUHFULWLFDOWRFRPEDWWDVN
VWDQGDUGL]DWLRQDQGEDWWOHILHOGHIILFLHQF\7KHEDWWOHGULOOLQIRUPDWLRQRQ
WKHIROORZLQJSDJHVZDVDGDSWHGIURPWKH$%&6%DWWOH6WDII6\VWHPRI
6\VWHPV,QWHJUDWLRQ7UDLQLQJ6XSSRUW3DFNDJH,, %6,763,, 1XPEHU
$%&7%DWWOH6WDII7UDLQLQJDQG(YDOXDWLRQ2XWOLQHV 7 (2V 
SUHSDUHGE\WKH&ROOHFWLYH7UDLQLQJ'LUHFWRUDWH &7' &RPELQHG$UPV
&HQWHU7UDLQLQJ)RUW/HDYHQZRUWK.DQVDV7KH\KDYHEHHQLQFOXGHGWR
SURYLGHWKH%16ZLWKWKHW\SHRI&2(WDFWLFDOHYHQWVKHPD\EH
FKDOOHQJHGWRVXSSRUW

7KHVXSSRUWWDVNFKHFNOLVWVDWWKHHQGRIWKLVVHFWLRQZHUHDGDSWHGIURP
/HVVRQ3ODQ=HURLQIRUPDWLRQDOVRGHYHORSHGE\WKH&7'&RPELQHG
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
$UPV&HQWHU7UDLQLQJ7KH\KDYHEHHQLQFOXGHGDVH[DPSOHVRI
KHOSIXOWRROVWKH6FDQXVHGXULQJEDWWOHVWDIIRSHUDWLRQV

'**($&4(( ($'&'%8$/24&$.
ƒ 6LWXDWLRQ$%1VHQGVYRLFHPHVVDJHWRFOHDUILUHV$EDWWOHKDV
HUXSWHGLQDQDUHDDGMDFHQWWRDQRWKHU%1¶V$2DQGWKHXQLWHQJDJHG
ZDQWVWREULQJILUHVLQWRWKHEDWWOHEXWLVFRQFHUQHGWKDWURXQGVPLJKW
ODQGLQWKH%1¶V$27KHXQLWLVUHTXHVWLQJSHUPLVVLRQWRFOHDUILUHV
YLDYRLFHWUDQVPLVVLRQZLWKWKH)6(1RWH&OHDUDQFHRIILUHVLVD
VHQVLWLYHFRPPDQGHU¶VLVVXHDQGPXVWEHDFFRPSOLVKHGZLWKVSHHG
DFFXUDF\RIYHULILFDWLRQDQGFRPPDQGDSSURYDO

&OHDUDQFHRI)LUHV

%DWWOH'ULOO6WHS0HVVDJHUHFHLYHGLQWR72&DQGIRUZDUGHG
WR6%DWWOH6WDII1&2
 $FWLRQVE\6%DWWOH6WDII1&2
ƒ 9HULILHVYLDYRLFHWUDQVPLVVLRQHYHQWORFDWLRQ
DQGXQLW
ƒ 1RWLILHV%DWWOH&DSWDLQ
ƒ /RJVHYHQWLQWRMRXUQDO GLJLWDO 
ƒ &RQWLQXHVWRPRQLWRUIRUIXUWKHUUHSRUWVRU
UHTXHVWVVSHFLILFLQIRUPDWLRQ

%DWWOH'ULOO6WHS$FWLRQIORZIURP6%DWWOH6WDII1&2WR
WKH6%DWWOH&DSWDLQ
 $FWLRQVE\6%DWWOH&DSWDLQ
ƒ 1RWLILHV6LQIRUPVXQLW72&VDQGFRQWLQXHVWR
PRQLWRUIRUIXUWKHUUHSRUWV
ƒ (QVXUHV/12 V RIXQLWVLQYROYHGJDWKHU
LQIRUPDWLRQDQGWKDWQRQLQYROYHG/12 V 
DQDO\]HIRUDQ\LPSDFWRQWKHLUXQLWV
ƒ 'UDIWV63275HSRUWWR++4
ƒ &RQWLQXHVWRXSGDWH6ZLWKLQIRUPDWLRQIURP
/12VRU++4
ƒ &RQGXFWV0&6³GULOOGRZQ´WRORFDWLRQRI
LQFLGHQWERRNPDUNVORFDWLRQRQWKHEHVWLPDJHU\
DYDLODEOH

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  
ƒ &UHDWHV,&21VXSSRUWLQJHYHQWDQGDGGVWRGDLO\
6,*$&7VRYHUOD\

%DWWOH'ULOO6WHS$FWLRQIORZIURPWKH6%DWWOH&DSWDLQWR
WKH6%DWWOH6WDII1&2&37
 $FWLRQVE\6%DWWOH6WDII1&2&DSWDLQ
ƒ 5HFHLYHV.PHVVDJHIURP)%&%*HQHUDWHV
DSSURSULDWHPHVVDJHRYHUOD\HQWHUVLQWR$6$6
'EDQGVHQGVWR%'(&3DQDO\VLVDQGFRQWURO
WHDP $&7 IRUVLQJOHVRXUFHDQDO\VLVDQG
SURFHVVLQJDQGLQFRUSRUDWLRQLQWR$OO6RXUFH
&RUUHODWHG'E

%DWWOH'ULOO6WHS$FWLRQIORZIURPWKH6%DWWOH6WDII1&2
&DSWDLQWRWKH6
 $FWLRQVE\6 6LPXOWDQHRXV&RQFXUUHQWZLWK
%DWWOH&DSWDLQ 
ƒ &DOOVDWWHQWLRQLQWKH72&Z³:V´
ƒ 1RWLILHVWKH&RPPDQGHU
ƒ &RQGXFWVKDVW\DQDO\VLVWRGHWHUPLQHLI
DQ\WKLQJQHHGVWREHGRQHLPPHGLDWHO\
ƒ 3UHSODQQHGILUHV±YHULILHVUHVWULFWLYH
RSHUDWLRQV]RQH 52= LQFOXVLRQLQGDLO\
$LUVSDFH&RQWURO2UGHU $&2 
ƒ ,PPHGLDWHILUHV±YHULILHVDLUVSDFHFOHDURI
DLUFUDIW
ƒ &DOOVSRWHQWLDOO\DIIHFWHGXQLWVWRGHWHUPLQH
DFWXDOORFDWLRQV

%DWWOH'ULOO6WHS$FWLRQIORZIURPWKH6WRWKH%DWWOH6WDII
 $FWLRQVE\%DWWOH6WDII,QLWLDWHVLQWHUQDO
UHTXLUHPHQWVFRQGXFWVKDVW\DQDO\VLVGHYHORSV
UHFRPPHQGDWLRQVDQGSURYLGHVLQSXWWR6
ƒ )62&RRUGLQDWHVZLWK%'()LUH6XSSRUW
(OHPHQW )6( 6$LUDQG$LU/LDLVRQ
2IILFHU $/2 
ƒ (QJLQHHU8SGDWHVDQGSXEOLVKHVFROODWHUDO
GDPDJH0&22DVQHFHVVDU\

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
   
ƒ 6$LU&RRUGLQDWHVZLWK%'()6(IRU$UP\
$LUVSDFH&RPPDQGDQG&RQWURO $& 
DLUVSDFHFOHDURIDLUFUDIW
ƒ $/2(QVXUHVDLUFRPSRQHQWDVVHWVDUHFOHDURI
DIIHFWHGDLUVSDFH
ƒ $6$60&6VXEVFULEHWR3$66IRUREVHUYHG
ORFDWLRQRYHUOD\SXEOLVKHGE\)%&%

%DWWOH'ULOO6WHS$FWLRQIORZIURPWKH%DWWOH6WDIIWRWKH6
 $FWLRQVE\6
ƒ 5HFDOOVWKHEDWWOHVWDIIWRDKXGGOH
ƒ *DWKHUVUHFRPPHQGDWLRQV
ƒ 'HYHORSVFXUUHQWRSHUDWLRQVDVVHVVPHQW
UHFRPPHQGDWLRQVWRWKH;2
ƒ %ULHIV;2RQFXUUHQWRSHUDWLRQVDFWLRQV
UHFRPPHQGDWLRQV

'**($&4((
?
**'80

6LWXDWLRQ$FRPSDQ\UHSRUWVWKDWDPRXQWHGSDWUROZDVVLPXOWDQHRXVO\
DWWDFNHGE\DYHKLFOHERUQHLPSURYLVHGH[SORVLYHGHYLFH 9%,(' DQGDQ
LPSURYLVHGH[SORVLYHGHYLFH ,(' DORQJWKHKLJKZD\YLFLQLW\
60%$VPDOOSLFNXSWUXFNFURVVHGWKHPHGLDQDLPHGKLV
YHKLFOHRI717WRZDUGVDPRYLQJWDFWLFDOYHKLFOHDQGGHWRQDWHGLWEHIRUH
UHDFKLQJWKHYHKLFOH7KHGULYHURIWKHSLFNXSWUXFNGRYHIURPWKHYHKLFOH
DQGZDVVXEVHTXHQWO\KLWE\VHYHUDORWKHUFDUVDQGNLOOHG$WWKHVDPH
WLPHDQRWKHU,('ZDVGHWRQDWHGDORQJWKHULJKWVLGHRIWKHURDGQH[WWRD
YHKLFOHLQIURQWRIWKHWDFWLFDOYHKLFOHWDUJHWHGE\WKH9%,('7KHVHFRQG
,('GHVWUR\HGRQH+00:9DQGVHULRXVO\ZRXQGHGWZR6ROGLHUV

9%,(',('$WWDFN

%DWWOH'ULOO6WHS0HVVDJHUHFHLYHGLQWR72&DQGIRUZDUGHG
WR6%DWWOH6WDII1&2
 $FWLRQVE\6%DWWOH6WDII1&2
ƒ 1RWLILHV%DWWOH&DSWDLQ
ƒ /RJVHYHQWLQWRMRXUQDO GLJLWDO 
ƒ &RQWLQXHVWRPRQLWRUIRUIXUWKHUUHSRUWV

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
 ! 
%DWWOH'ULOO6WHS$FWLRQIORZIURP6%DWWOH6WDII1&2WR
WKH6%DWWOH&DSWDLQ
 $FWLRQVE\6%DWWOH&DSWDLQ
ƒ 1RWLILHV6LQIRUPVXQLW72&VDQGFRQWLQXHVWR
PRQLWRUIRUIXUWKHUUHSRUWV
ƒ 3ODFHVREVHUYHGORFDWLRQV GDWDPHVVDJH RQWKH
72&/$1 PXOWLFDVWJURXS 
ƒ 0&6ZRUNVWDWLRQVUHFHLYHREVHUYHGORFDWLRQVYLD
1HDU5HDO7LPH6HUYHU 1576 
ƒ (QVXUHV/12 V RIXQLWVLQYROYHGJDWKHU
LQIRUPDWLRQDQGWKDWQRQLQYROYHG/12 V 
DQDO\]HIRUDQ\LPSDFWRQWKHLUXQLWV
ƒ 'UDIWV63275HSRUWWR++4
ƒ &RQWLQXHVWRXSGDWH6ZLWKLQIRUPDWLRQIURP
/12VRU++4
ƒ &RQGXFWV0&6³GULOOGRZQ´WRORFDWLRQRI
LQFLGHQWDQGERRNPDUNVORFDWLRQRQWKHEHVW
LPDJHU\DYDLODEOH
ƒ &UHDWHV,&21VXSSRUWLQJHYHQWDQGDGGVWRGDLO\
6,*$&7VRYHUOD\

%DWWOH'ULOO6WHS$FWLRQIORZIURPWKH6%DWWOH&DSWDLQWR
WKH6%DWWOH6WDII1&2&DSWDLQ
 $FWLRQVE\6%DWWOH6WDII1&2&DSWDLQ
ƒ 5HFHLYHV.PHVVDJHIURP)%&%*HQHUDWHV
DSSURSULDWHPHVVDJHRYHUOD\HQWHUVLQWR$6$6
GDWDEDVHDQGVHQGVWR%'(&3$&7IRUVLQJOH
VRXUFHDQDO\VLVDQGSURFHVVLQJDQGLQFRUSRUDWLRQ
LQWR$OO6RXUFH&RUUHODWHG'DWDEDVH

%DWWOH'ULOO6WHS$FWLRQIORZIURPWKH6%DWWOH6WDII1&2
&DSWDLQWRWKH6
 $FWLRQVE\6 6LPXOWDQHRXV&RQFXUUHQWZLWK
%DWWOH&DSWDLQ 
ƒ &DOOVDWWHQWLRQLQWKH72&Z³:V´
ƒ 1RWLILHVWKH&RPPDQGHU
ƒ &RQGXFWVKDVW\DQDO\VLVWRGHWHUPLQHLIDQ\WKLQJ
QHHGVWREHGRQHLPPHGLDWHO\
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
 " 

%DWWOH'ULOO6WHS$FWLRQIORZIURPWKH6WRWKH6%DWWOH
&DSWDLQ
 $FWLRQVE\6%DWWOH&DSWDLQ*DWKHUV
LQIRUPDWLRQ
ƒ /RFDWLRQRIDFWLRQ
ƒ 'DWHWLPHJURXSRIWKHLQFLGHQW
ƒ 7\SHRIPXQLWLRQV GURSSHGSURMHFWHGSODFHGRU
WKURZQ 
ƒ 5HVRXUFHWKUHDWHQHG ZKDWUHVRXUFHLVWKUHDWHQHG
±LVLWDFULWLFDODVVHW" 
ƒ 3URWHFWLYHPHDVXUHVWDNHQ XQLWHPSODFHG
SURWHFWLYHPHDVXUHV 
ƒ 1DPHUDQN6RFLDO6HFXULW\QXPEHU 661 DJH
SRVLWLRQXQLWVWDWLRQRIDVVLJQPHQWDQGGXW\
VWDWXV
ƒ .LOOHGLQVWDQWO\RUGLHGRIZRXQGV
ƒ ,QFLGHQWVXPPDU\ LQFOXGHFDXVHW\SHRIZHDSRQ
LQYROYHGVHTXHQFHRIHYHQWVFRDOLWLRQRUKRVWLOH
6ROGLHU V DFWLRQV 
ƒ 5HPDUNV DGGLWLRQDOLQIRUPDWLRQWKDWKHOSV
H[SODLQWKHLQFLGHQWRUFRPPHQWVRQSRVVLEOH
FRPPDQGLPSDFWV 
ƒ )ROORZXSDFWLRQWDNHQE\XQLWLQUHODWLRQWR
• &DVXDOW\HYDFXDWLRQ
• 7KHHQHP\
• &RQWLQXHVWRPRQLWRUIRUIXUWKHUUHSRUWV

%DWWOH'ULOO6WHS$FWLRQIORZIURPWKH6DQG6%DWWOH
&DSWDLQWRWKH%DWWOH6WDII
 $FWLRQVE\%DWWOH6WDII,QLWLDWHVLQWHUQDO
UHTXLUHPHQWVFRQGXFWVKDVW\DQDO\VLVGHYHORSV
UHFRPPHQGDWLRQVDQGSURYLGHVLQSXWWR6
ƒ 65HSODFHPHQWVHVFRUWVGRFXPHQWV
SURFHVVLQJ
ƒ 67UHQGSDWWHUQDQDO\VLVUHFUHDWHHYHQW
JUDSKLFDOO\

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  
ƒ 63URSHUW\GHVWUR\HGIORDWVDGMXVWPHQW
GRFXPHQWV
ƒ 6(QVXUHFLYLODIIDLUVWHDPVJDWKHU
LQIRUPDWLRQ
ƒ &KDSODLQ3URYLGHDGYLFHDQGVXSSRUWWR
6ROGLHU V DQGIDPLO\PHPEHUV$GGUHVVEDWWOH
IDWLJXHDQGFRPEDWVWUHVV&RQGXFWUHOLJLRXV
VXSSRUWIRU6ROGLHU V ZKRKDYHGLHGRUEHHQ
ZRXQGHG
ƒ 3XEOLF$IIDLUV2IILFHU 3$2 )ODVKSXEOLFDIIDLUV
3$ UHVSRQVH
ƒ 6WDII-XGJH$GYRFDWH 6-$ 3URYLGHDVVLVWDQFH
WRUHDUHOHPHQWV
ƒ ,QVSHFWRU*HQHUDO ,* %HSUHSDUHGWRLQLWLDWH
LQYHVWLJDWLRQLIUHTXLUHG
ƒ $6$60&6LQ&3DQG&3VXEVFULEHWR3$66
IRUREVHUYHGORFDWLRQRYHUOD\SXEOLVKHGE\
)%&%

%DWWOH'ULOO6WHS$FWLRQIORZIURPWKH%DWWOH6WDIIWRWKH6
 $FWLRQVE\6
ƒ 5HFDOOVWKHEDWWOHVWDIIWRDKXGGOH
ƒ *DWKHUVUHFRPPHQGDWLRQV
ƒ 'HYHORSVFXUUHQWRSHUDWLRQVDVVHVVPHQW
UHFRPPHQGDWLRQVWRWKH;2
ƒ %ULHIV;2RQFXUUHQWRSHUDWLRQVDFWLRQV
UHFRPPHQGDWLRQV

%DWWOH'ULOO6WHS$FWLRQIORZIURPWKH6WRWKH6%DWWOH
&DSWDLQ
 $FWLRQVE\6DQG6%DWWOH&DSWDLQ
ƒ &RQWLQXHVWRXSGDWH6ZLWKLQIRUPDWLRQIURP
/12VRU++4
ƒ 6RSHUDWLRQV0&6UHFHLYHV1576REMHFWW\SH
³6327´RQ72&/$1 PXOWLFDVWJURXS IURP
0&6*DWHZD\RU0&66HUYHUYLD15766HUYLFH
%URDGFDVWDQGGLVSOD\VRQ&23
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  

%DWWOH'ULOO6WHS$FWLRQIORZIURPWKH6DQG6%DWWOH
&DSWDLQWRWKH;2
 $FWLRQVE\;2
ƒ 5HFHLYHVUHFRPPHQGDWLRQVDQGSURYLGHV
JXLGDQFH

%DWWOH'ULOO6WHS$FWLRQIORZIURPWKH;2WRWKH6
 $FWLRQVE\6
ƒ 'LVVHPLQDWHVVXSHUYLVHVH[HFXWLRQRIJXLGDQFH

'**($&4(( 
4/('*4/%

6LWXDWLRQ$FRPSDQ\UHSRUWVWKDWD6ROGLHUKDVFRPPLWWHGD52(
YLRODWLRQ6ROGLHUZDVSDUWRIDSDWUROWKDWZDVFRQGXFWLQJDVZHHSRID
QHLJKERUKRRGDQGWKHSDWUROZDVILUHGXSRQE\DVQLSHU$VWKHSDWURO
DSSURDFKHGWKHKRXVHWKDWWKHVQLSHUZDVEHOLHYHGWRKDYHILUHGIURPDQ
LQGLYLGXDOFDPHUXQQLQJRXWRIWKHKRXVH6ROGLHUEHOLHYHGWKDWWKH
LQGLYLGXDOZDVFDUU\LQJDZHDSRQDQGZLWKRXWDQ\YHUEDOZDUQLQJRU
ZDUQLQJVKRWVVKRWWKHLQGLYLGXDOQXPHURXVWLPHV%1&RPPDQGHUKDV
LQLWLDWHGDQLQYHVWLJDWLRQLQWRWKHLQFLGHQW

52(9LRODWLRQ

%DWWOH'ULOO6WHS0HVVDJHUHFHLYHGLQWR72&DQGIRUZDUGHGWR
6%DWWOH6WDII1&2
 $FWLRQVE\6%DWWOH6WDII1&2
ƒ 1RWLILHV%DWWOH&DSWDLQ
ƒ /RJVHYHQWLQWRMRXUQDO GLJLWDO 
ƒ &RQWLQXHVWRPRQLWRUIRUIXUWKHUUHSRUWV


%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

%DWWOH'ULOO6WHS$FWLRQIORZIURP6%DWWOH6WDII1&2WRWKH
6%DWWOH&DSWDLQ
 $FWLRQVE\6%DWWOH&DSWDLQ
ƒ 1RWLILHV6LQIRUPVXQLW72&VDQGFRQWLQXHVWR
PRQLWRUIRUIXUWKHUUHSRUWV
ƒ (QVXUHV/12 V RIXQLWVLQYROYHGJDWKHU
LQIRUPDWLRQDQGWKDWQRQLQYROYHG/12 V DQDO\]H
IRUDQ\LPSDFWRQWKHLUXQLWV
ƒ 'UDIWV63275HSRUWWR++4
ƒ &RQWLQXHVWRXSGDWH6ZLWKLQIRUPDWLRQIURP
/12VRU++4
ƒ &RQGXFWV0&6³GULOOGRZQ´WRORFDWLRQRILQFLGHQW
ERRNPDUNVORFDWLRQRQWKHEHVWLPDJHU\DYDLODEOH
ƒ &UHDWHV,&21VXSSRUWLQJHYHQWDQGDGGVWRGDLO\
6,*$&7VRYHUOD\

%DWWOH'ULOO6WHS$FWLRQIORZIURPWKH6%DWWOH&DSWDLQWRWKH
6%DWWOH6WDII1&2&DSWDLQ
 $FWLRQVE\6%DWWOH6WDII1&2&DSWDLQ
ƒ 5HFHLYHV.PHVVDJHIURP)%&%*HQHUDWHV
DSSURSULDWHPHVVDJHRYHUOD\HQWHUVLQWR$6$6
GDWDEDVHDQGVHQGVWR%'(&3$&7IRUVLQJOH
VRXUFHDQDO\VLVDQGSURFHVVLQJDQGLQFRUSRUDWLRQ
LQWR$OO6RXUFH&RUUHODWHG'DWDEDVH

%DWWOH'ULOO6WHS$FWLRQIORZIURPWKH6%DWWOH6WDII1&2
&DSWDLQWRWKH6
 $FWLRQVE\6 6LPXOWDQHRXV&RQFXUUHQWZLWK%DWWOH
&DSWDLQ 
ƒ &DOOVDWWHQWLRQLQWKH72&Z³:V´
ƒ 1RWLILHVWKH&RPPDQGHU
ƒ &RQGXFWVKDVW\DQDO\VLVWRGHWHUPLQHLIDQ\WKLQJQHHGV
WREHGRQHLPPHGLDWHO\


%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

%DWWOH'ULOO6WHS$FWLRQIORZIURPWKH6WRWKH6%DWWOH
&DSWDLQ
 $FWLRQVE\6%DWWOH&DSWDLQ*DWKHUVLQIRUPDWLRQ
ƒ /RFDWLRQRIDFWLRQ
ƒ 'DWHWLPHJURXSRIWKHLQFLGHQW
ƒ 1DPH V 661 V XQLWRI6ROGLHU V LQYROYHG
ƒ 7KHPLVVLRQWKHXQLWZDVFRQGXFWLQJDWWKHWLPH
ƒ 1DWXUHRIDOOHJHG52(YLRODWLRQ
ƒ )ROORZXSDFWLRQWDNHQE\XQLWLQUHODWLRQWR
• &RRUGLQDWHZLWKWULDOFRXQVHO
• &RPPDQGHU¶VLQLWLDOLQTXLU\
• (YLGHQFHSUHVHUYDWLRQ
• $SSRLQWPHQWRI,QYHVWLJDWLQJ2IILFHU
ƒ &RQWLQXHVWRPRQLWRUIRUIXUWKHUUHSRUWV

%DWWOH'ULOO6WHS$FWLRQIORZIURPWKH6DQG6%DWWOH&DSWDLQ
WRWKH%DWWOH6WDII
 $FWLRQVE\%DWWOH6WDII,QLWLDWHVLQWHUQDOUHTXLUHPHQWV
FRQGXFWVKDVW\DQDO\VLVGHYHORSVUHFRPPHQGDWLRQV
DQGSURYLGHVLQSXWWR6
ƒ 6,PSDFWZLWKQRQ*RYHUQPHQWDORUJDQL]DWLRQV
1*2 
ƒ 3$2)ODVK3$UHVSRQVHPRQLWRUVPHGLDUHVSRQVH
ƒ 6-$3UHSDUHV$5DSSRLQWPHQWPHPRQRWLILHV
++46-$DQGUHYLHZV52(WUDLQLQJFRQGXFWHGE\
XQLW
ƒ $6$60&6LQ&3 &3VXEVFULEHWR3$66IRU
REVHUYHGORFDWLRQRYHUOD\SXEOLVKHGE\)%&%

%DWWOH'ULOO6WHS$FWLRQIORZIURPWKH%DWWOH6WDIIWRWKH6
 $FWLRQVE\6
ƒ 5HFDOOVWKHEDWWOHVWDIIWRDKXGGOH
ƒ *DWKHUVUHFRPPHQGDWLRQV
ƒ 'HYHORSVFXUUHQWRSHUDWLRQVDVVHVVPHQW
UHFRPPHQGDWLRQVWRWKH;2
ƒ %ULHIV;2RQFXUUHQWRSHUDWLRQVDFWLRQV
UHFRPPHQGDWLRQV


%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

%DWWOH'ULOO6WHS$FWLRQIORZIURPWKH6WRWKH6%DWWOH
&DSWDLQ
 $FWLRQVE\6DQG6%DWWOH&DSWDLQ
ƒ &RQWLQXHVWRXSGDWH6ZLWKLQIRUPDWLRQIURP/12V
RU++4
ƒ 6RSHUDWLRQV0&6UHFHLYHV1576REMHFWW\SH
³6327´RQ72&/$1 PXOWLFDVWJURXS IURP0&6
*DWHZD\RU0&66HUYHUYLD15766HUYLFH%URDGFDVW
DQGGLVSOD\VRQ&23

%DWWOH'ULOO6WHS$FWLRQIORZIURPWKH6DQG6%DWWOH&DSWDLQ
WRWKH;2
 $FWLRQVE\;2
ƒ 5HFHLYHVUHFRPPHQGDWLRQVDQGSURYLGHVJXLGDQFH

%DWWOH'ULOO6WHS$FWLRQIORZIURPWKH;2WRWKH6
 $FWLRQVE\6
ƒ 'LVVHPLQDWHVVXSHUYLVHVH[HFXWLRQRIJXLGDQFH

'**($&4((&4$%-(,@4(($-4%8*4/%9@:?/6%-$-4%
8*4/%9:

6LWXDWLRQ$FRPSDQ\UHSRUWVWKDWDVQLSHUVKRWDQGNLOOHGD866ROGLHU
ZKLOHKHZDVRQSDWURO3DWUROZDVVHDUFKLQJWKHRXWVLGHRIDEXLOGLQJ
ZKHQWKH6ROGLHUZDVVKRW3DWUROVHDUFKHGWKHDUHDEXWGLGQRWORFDWHWKH
VQLSHU$GGLWLRQDOGHWDLOVDUHSHQGLQJ

)ULHQGO\.,$:,$

%DWWOH'ULOO6WHS0HVVDJHUHFHLYHGLQWR72&DQGIRUZDUGHGWR
6%DWWOH6WDII1&2
 $FWLRQVE\6%DWWOH6WDII1&2
ƒ 1RWLILHV%DWWOH&DSWDLQ
ƒ /RJVHYHQWLQWRMRXUQDO GLJLWDO 
ƒ &RQWLQXHVWRPRQLWRUIRUIXUWKHUUHSRUWV


%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

%DWWOH'ULOO6WHS$FWLRQIORZIURP6%DWWOH6WDII1&2WRWKH
6%DWWOH&DSWDLQ
 $FWLRQVE\6%DWWOH&DSWDLQ
ƒ 1RWLILHV6LQIRUPVXQLW72&VDQGFRQWLQXHVWR
PRQLWRUIRUIXUWKHUUHSRUWV
ƒ 3ODFHVREVHUYHGORFDWLRQV HQWLW\GDWDPHVVDJH RQ
72&/$1 PXOWLFDVWJURXS 0&6ZRUNVWDWLRQV
UHFHLYHREVHUYHGORFDWLRQVYLD1576
ƒ (QVXUHV/12 V RIXQLWVLQYROYHGJDWKHU
LQIRUPDWLRQDQGWKDWQRQLQYROYHG/12 V DQDO\]H
IRUDQ\LPSDFWRQWKHLUXQLWV
ƒ 'UDIWV63275HSRUWWR++4
ƒ (QWHUVHYHQWLQWR6,*$&7VORJDQGSRVWRQ
6,*$&7VFKDUW

%DWWOH'ULOO6WHS$FWLRQIORZIURPWKH6%DWWOH&DSWDLQWRWKH
6%DWWOH6WDII1&2&DSWDLQ
 $FWLRQVE\6%DWWOH6WDII1&2&DSWDLQ
ƒ 5HFHLYHV.PHVVDJHIURP)%&%*HQHUDWHV
DSSURSULDWHPHVVDJHRYHUOD\HQWHUVLQWR$6$6
GDWDEDVHDQGVHQGVWR%'(&3$&7IRUVLQJOH
VRXUFHDQDO\VLVDQGSURFHVVLQJDQGLQFRUSRUDWLRQ
LQWR$OO6RXUFH&RUUHODWHG'DWDEDVH


%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

%DWWOH'ULOO6WHS$FWLRQIORZIURPWKH6%DWWOH6WDII1&2
&DSWDLQWRWKH6
 $FWLRQVE\6 6LPXOWDQHRXV&RQFXUUHQWZLWK
%DWWOH&DSWDLQ 
ƒ &DOOVDWWHQWLRQLQWKH72&Z³:V´
ƒ 1RWLILHVWKH&RPPDQGHU
ƒ &RQGXFWVKDVW\DQDO\VLVWRGHWHUPLQHLIDQ\WKLQJ
QHHGVWREHGRQHLPPHGLDWHO\

%DWWOH'ULOO6WHS$FWLRQIORZIURPWKH6WRWKH6%DWWOH
&DSWDLQ
 $FWLRQVE\6%DWWOH&DSWDLQ*DWKHUV
LQIRUPDWLRQ
ƒ /RFDWLRQRIDFWLRQ
ƒ 'DWHWLPHJURXSRIWKHLQFLGHQW
ƒ 1DPHUDQN661DJHSRVLWLRQXQLWDQGVWDWLRQ
RIDVVLJQPHQWGXW\VWDWXV EDWWOHURVWHU
LQIRUPDWLRQ 
ƒ .LOOHGLQVWDQWO\RUGLHGRIZRXQGV
ƒ ,QFLGHQWVXPPDU\ LQFOXGHFDXVHW\SHRIZHDSRQ
LQYROYHGVHTXHQFHRIHYHQWVFRDOLWLRQRUKRVWLOH
6ROGLHU V DFWLRQV 
ƒ 5HPDUNV DGGLWLRQDOLQIRUPDWLRQWKDWKHOSV
H[SODLQWKHLQFLGHQWRUFRPPHQWVRQSRVVLEOH
FRPPDQGLPSDFWV 
ƒ )ROORZXSDFWLRQWDNHQE\XQLWLQUHODWLRQWR
• &DVXDOW\HYDFXDWLRQ
• 7KHHQHP\
ƒ &RQWLQXHVWRPRQLWRUIRUIXUWKHUUHSRUWV


%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
   

%DWWOH'ULOO6WHS$FWLRQIORZIURPWKH6DQG6%DWWOH
&DSWDLQWRWKH%DWWOH6WDII
 $FWLRQVE\%DWWOH6WDII,QLWLDWHVLQWHUQDO
UHTXLUHPHQWVFRQGXFWVKDVW\DQDO\VLVGHYHORSV
UHFRPPHQGDWLRQVDQGSURYLGHVLQSXWWR6
ƒ 65HSODFHPHQWVHVFRUWVGRFXPHQWVSURFHVVLQJ
ƒ 67UHQGSDWWHUQDQDO\VLVUHFUHDWHHYHQWV
JUDSKLFDOO\
ƒ 63URSHUW\GHVWUR\HGIORDWVDGMXVWPHQW
GRFXPHQWV
ƒ 6(QVXUHVFLYLODIIDLUVWHDPVJDWKHULQIRUPDWLRQ
ƒ &KDSODLQ3URYLGHVDGYLFHDQGVXSSRUWWR6ROGLHU V 
DQGIDPLO\PHPEHUV$GGUHVVHVEDWWOHIDWLJXHDQG
FRPEDWVWUHVV&RQGXFWVUHOLJLRXVVXSSRUWIRU
6ROGLHU V ZKRKDYHGLHGRUEHHQZRXQGHG
ƒ 3$2)ODVK3$UHVSRQVH
ƒ 6-$3URYLGHVDVVLVWDQFHWRUHDUHOHPHQWV
ƒ ,*%HSUHSDUHGWRLQLWLDWHLQYHVWLJDWLRQLIUHTXLUHG
ƒ $6$60&6LQ&3 &3VXEVFULEHWR3$66IRU
REVHUYHGORFDWLRQRYHUOD\SXEOLVKHGE\)%&%

%DWWOH'ULOO6WHS$FWLRQIORZIURPWKH%DWWOH6WDIIWRWKH6
 $FWLRQVE\6
ƒ 5HFDOOVWKHEDWWOHVWDIIWRDKXGGOH
ƒ *DWKHUVUHFRPPHQGDWLRQV
ƒ 'HYHORSVFXUUHQWRSHUDWLRQVDVVHVVPHQW
UHFRPPHQGDWLRQVWRWKH;2
ƒ %ULHIV;2RQFXUUHQWRSHUDWLRQVDFWLRQV
UHFRPPHQGDWLRQV


%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 ! 

%DWWOH'ULOO6WHS$FWLRQIORZIURPWKH6WRWKH6%DWWOH
&DSWDLQ
 $FWLRQVE\6DQG6%DWWOH&DSWDLQ
ƒ &RQWLQXHVWRXSGDWH6ZLWKLQIRUPDWLRQIURP
/12VRU++4
ƒ 6RSHUDWLRQV0&6UHFHLYHV1576REMHFWW\SH
³6327´RQ72&/$1 PXOWLFDVWJURXS IURP
0&6*DWHZD\RU0&66HUYHUYLD15766HUYLFH
%URDGFDVWDQGGLVSOD\VRQ&23

%DWWOH'ULOO6WHS$FWLRQIORZIURPWKH6DQG6%DWWOH
&37WRWKH;2
 $FWLRQVE\;2
ƒ 5HFHLYHVUHFRPPHQGDWLRQVDQGSURYLGHV
JXLGDQFH

%DWWOH'ULOO6WHS$FWLRQIORZIURPWKH;2WRWKH6
 $FWLRQVE\6
ƒ 'LVVHPLQDWHVVXSHUYLVHVH[HFXWLRQRIJXLGDQFH

677/&*'.0 )$80(4.*.

7KHIROORZLQJVXSSRUWWDVNVDQGFKHFNOLVWVDUHVDPSOHVRQO\DQGDUH
LQWHQGHGWRSURYLGHWKH6ZLWKDQDSSUHFLDWLRQIRUWKHQXPHURXVDFWLRQV
WKDWPD\EHUHTXLUHGWRVXSSRUWDVLQJOHVXSSRUWWDVN7KH6VKRXOG
PDNHDFRPSUHKHQVLYHVXSSRUWWDVNOLVWDQGLGHQWLI\WKHDFWLRQVWKDWPXVW
EHWDNHQWRDFFRPSOLVKHDFK
ƒ 6XSSRUW7DVN3UHSODQWKH1HWZRUN
• &KHFNWKHIROORZLQJ
• :KDWLVWKHFXUUHQWVWDWXVRIWKH/',)")LQDOL]HG *RWR:DU "&DQ
LQSXWVEHPDGH",VLWRQKDQG"
• :KDWFHOOVZLOOEHLQYROYHGLQWKHH[HUFLVH"
• :KDWSURFHGXUHVDUHLQWKH623IRULQIRUPDWLRQIORZDQGSHUPLVVLRQV"
• %HVLGHV$%&6ZKDWDUHWKHRWKHUQHWZRUNUHTXLUHPHQWV"
• +RZPDQ\&33¶VDUHRQKDQG RSHUDWLRQDO "+RZPDQ\&33¶VZLOO
EHXVHGGXULQJWKHH[HUFLVH"
• :LOOMRLQWQHWZRUNQRGH -11 DQG&3QHWZRUN &31 EHXVHGGXULQJ
WKHH[HUFLVH"
• $UHHQRXJKVXSSOLHVRQKDQG ZLUH5-:KLWH%RDUGV7URXEOH
7LFNHWVHWF "
• :KDWLVWKHFXUUHQWFRQILJXUDWLRQRIWKHURXWHUVDQGVZLWFKHV"
• :LOO++4DQGRUVXERUGLQDWHHOHPHQWVEHLQYROYHGLQWKHH[HUFLVH"
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
 " 
• :KDWNLQGRIFRQWUDFWRUVXSSRUWZLOOEHRQKDQG" (VWDEOLVKD
³7UDLO%RVV´DQGKDYHDFRQWDFWURVWHU 
• :KRLQWKH66(&KDVVHWXSHVWDEOLVKHG$%&6QHWZRUN"
• $UHLQSURFHVVUHYLHZVVFKHGXOHGZLWKWKH++46"
• :KDWLVWKHVDWHOOLWHWLPHIRUYRLFHRYHULQWHUQHWSURWRFRO 9R,3 "
• :KDWLVWKHVWDWXVRI&5<372"

ƒ 6XSSRUW7DVN±&RRUGLQDWHZLWK.H\OHDGHUV
• &KHFNWKHIROORZLQJ
• 'R\RXKDYHWKHIXOOVXSSRUWRIWKH&RPPDQGHUDQGEDWWOHVWDII"
• :KDWLVWKHPDLQWHQDQFHVFKHGXOHIRUWKHJHQHUDWRUV"
• :KDWLVWKHRSHUDWLRQDOWLPHOLQH"
• :KDWLVWKH&RPPDQGHU¶V3ODQQLQJ*XLGDQFHLQWHQWDQGGHVLUHGHQG
VWDWH"
• +RZGRWKH6:))REMHFWLYHVDQGFDSDELOLWLHVV\QFKURQL]HZLWK
WKRVHRIWKH%1EDWWOHVWDIIDQGWKH&RPPDQGHU¶V*XLGDQFH"
• :KDWDUHWKH&RPPDQGHU¶VH[SHFWDWLRQVUHJDUGLQJPDQDJHPHQWRIWKH
QHWZRUN"&DQ\RXPHHWWKHP",IQRWZKDWDUHWKHGHOWDVDQGWKHLU
VROXWLRQV"
• :KDWNH\RSHUDWLRQDOUHTXLUHPHQWVPXVWEHLQFOXGHGLQ$QQH[+RIWKH
2325'"$UH\RXNHHSLQJDUXQQLQJHVWLPDWH"
• :KDWUHSRUWLQJLVUHTXLUHGWKDWPD\QRWEHOLVWHGLQWKH7$&623"
• 'RWKH6DQG;2KDYHVSHFLDOVXSSRUWUHTXLUHPHQWV":KDWDUHWKH\"
• :KDWDUHWKHUROHVIURPWKH/',)",VWKH&33IRUWKHUHTXHVWHGUROH
DYDLODEOH"
• ,VWKH&RPPDQGHUDFFHSWLQJDQ\ULVNWKDWPD\LPSDFW
FRPPXQLFDWLRQV" 6WD\LQYROYHGLQULVNPDQDJHPHQWGHFLVLRQV 
• :KDWDUH\RXH[SHFWHGWREULHILQWKHPLVVLRQDQDO\VLVEULHILQJ"
• 'R\RXSURYLGHLQSXWLQWRWKH0'03",IVRZKHQDQGZKDW"

ƒ 6XSSRUW7DVN±&RQGXFW,QWHUQDO)XQFWLRQ&KHFNV
• &KHFNWKHIROORZLQJ
• 3LQJ &DQWKHV\VWHPVDOOSLQJWKHURXWHU V "&DQDOOV\VWHPVSLQJHDFK
RWKHU"&DQDOOV\VWHPVSLQJWKHVHUYHUV" 
• +DYHVLPSOHWH[WPHVVDJHVEHHQVHQWWRDOOLQWHUQDOH[WHUQDOV\VWHPV"
• +DYHEDVHRSHUDWLRQVRYHUOD\VEHHQSXEOLVKHGIURPHDFKV\VWHP"
• +DVHDFKV\VWHPVXEVFULEHGWRDWHVWRYHUOD\DQGSRVWHGLWWRLWVRZQ
V\VWHP"
• +DVDSODQEHHQGHYHORSHGDQGLQSODFHIRU6SHUVRQQHOWR
WURXEOHVKRRWDQGUHVROYHQHWZRUNLVVXHV"
• ,VWKH%)$DQGQHWZRUNVWDWXVRQWKH6ODQW5HSRUW"

ƒ 6XSSRUW7DVN±&RQGXFW([WHUQDO&RPPXQLFDWLRQV&KHFNV
• &KHFNWKHIROORZLQJ
• 'LG\RXSLQJH[WHUQDOV\VWHPVXVLQJ&XW6KHHW"
• 'LG\RXVHQGVLPSOHWHVWPHVVDJHV"
• 'LG\RXHVWDEOLVKH[WHUQDOVWRYHSLSHFRPPXQLFDWLRQV"
• 'LG\RXFKHFN$6$6WR$6$6$)$7'6WR$)$7'6DQG%&6WR
%&6FRPPXQLFDWLRQV"
• +DYH\RXFKHFNHGWRHQVXUHWKDWDSSURSULDWH)65VDVGRQHZLWK
IXQFWLRQFKHFNVZRUNWKURXJKLGHQWLILHGSUREOHPV"
• $UH\RXWUDFNLQJVWDWXVRQWKH6ODQW5HSRUW"

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  
ƒ 6XSSRUW7DVN±'HYHORSD&XW6KHHW
• &KHFNWKHIROORZLQJ
• 'LG\RXGHYHORSLWLQFRQMXQFWLRQZLWKWKH6"
• +DYHSHUPLVVLRQVEHHQGHWHUPLQHGIRUHDFKUROH"
• +DYH\RXGHWHUPLQHGWKHUHFRPPHQGHGILHOGV HJ851LQWHUQHW
SURWRFRO ,3 $GGUHVVVXEQHWPDVNJDWHZD\UROHQDPHDSRUWIRUWKH
66(& "
• 'R\RXKDYHDQGDGGUHVVERRNDQGKDYH\RXDGGHGWKHQHFHVVDU\
QXPEHUV" 7KH&XW6KHHWFDQEHXVHGDVDQ$GGUHVV%RRNZKHQSKRQH
QXPEHUVDUHDGGHG 
• 'LG\RXZULWHLW" 7KHGHYHORSPHQWRIWKH&XW6KHHWLVWKH
UHVSRQVLELOLW\RIWKH66(& 
• +DYH\RXFKHFNHGWKHUROHVLQWKHVXEQHW" 1RWDOO5ROHVLQWKH/',)
ZLOOEHXVHGHYHU\WLPH 
• +DYH\RXORRNHGDWWKHFKHFNOLVWVIRUHDFKRSHUDWRUDQG)65" 2QFH
WKH&XW6KHHWLVSURGXFHGWKHFKHFNOLVWVVKRXOGEHSUHSDUHGDQG
GLVVHPLQDWHG 
• $IWHUWKHV\VWHPVZHUHUROHGDQGWHVWHGGLG\RXSURYLGHFRSLHV VRIW
DQGKDUG WR++4DQGVXERUGLQDWHHOHPHQWV"
• 'LG\RXREWDLQD&XW6KHHWIURP++4DQGVXERUGLQDWHHOHPHQWV"
• +DYH\RXFROODWHGDOO&XW6KHHWVDQGGLVWULEXWHGWRHDFKQRQ
FRPPLVVLRQHGRIILFHULQFKDUJH 1&2,& RIILFHULQFKDUJH 2,& "

6HFWLRQ±7KH'LJLWDO&RPPDQG3RVWDQG7DVN
,QWHJUDWLRQ

$%$&'(

%16VXSSRUWRIWKHGLJLWDOFRPPDQGSRVW '&3 LVSDUDPRXQWWR
VXFFHVVIXOWDFWLFDORSHUDWLRQV7KH%1&RPPDQGHUDQGEDWWOHVWDIIPD\
QRWDOZD\VUHTXHVW&3GHVLJQDSSURYDOIURPWKH6EXWWKH\ZLOODOZD\V
GHSHQGRQWKH6WRPDNHLWZRUN$VZLWKWKHDQDORJ&3WKHGLJLWDO&3
SK\VLFDOVHWXSPXVWIDFLOLWDWHFRPPXQLFDWLRQDQGDQDO\VLVRILQIRUPDWLRQ
DVZHOODVDFFRPPRGDWHFRPSXWHUKDUGZLUHUHTXLUHPHQWV7KH6PXVW
PDNHWKLVKDSSHQ

:LWKLQWKHGLJLWDO&3LQIRUPDWLRQLVSURFHVVHGDWLQGLYLGXDOZRUNVWDWLRQV
7KHIRFXVRIWKHLQGLYLGXDOZRUNVWDWLRQLVWKHLQGLYLGXDODXWRPDWHGV\VWHP
DQGWKHVSHFLILF:))LWVXSSRUWV$WWKHZRUNVWDWLRQEDWWOHVWDIIPHPEHUV
LQSXWDQGPRQLWRUGDWDZLWKLQWKHLUVSKHUHRIUHVSRQVLELOLW\7KH\DOVR
DFFHVVGDWDSRVWHGWRZHESDJHVDQGVKDUHGILOHVE\RWKHUVWDIIVHFWLRQVLQ
WKH/$1DQG:$1WRFDUU\RXWWKHLU:))DQGGXWLHV,QPRVW&3GHVLJQV
DFHQWUDODUHDIRUYLHZLQJ&23LQIRUPDWLRQLVPDLQWDLQHGLQRUGHUIRUWKH
FRPPDQGHUDQGEDWWOHVWDIIWRPDLQWDLQVLWXDWLRQDOXQGHUVWDQGLQJ7KH
ODUJHVFUHHQGLVSOD\ /6' DFFRPSOLVKHVWKLVDQGLVWKHRQO\DUHDLQWKH&3
ZKHUHDOONH\DXWRPDWHGV\VWHPGDWDFDQEHYLHZHGVLPXOWDQHRXVO\,WLV
WKHUHIRUHWKHSODFHZKHUHEDWWOHILHOGYLVLRQLVVXSSRUWHGEHVW7KH
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
FRPPDQGHUXVHVWKH&23WRLOOXVWUDWHKLVJXLGDQFH

7KH'&3LISURSHUO\XVHGWUDLQHGDQGLQFOXGHGLQ623VHQDEOHV
EDWWDOLRQVWDIIVWRRSHUDWHPRUHHIILFLHQWO\DQGHIIHFWLYHO\,PSURYHG6$
WRROVHQKDQFHV\QFKURQL]DWLRQRIRSHUDWLRQV2YHUVLJKWRIDFWLYH
RSHUDWLRQVDQWLFLSDWLQJDQGFRUUHFWLQJSUREOHPVDQGPDQDJLQJHYHQWV
ZLWKJUHDWHUSUHFLVLRQDGGVLJQLILFDQWO\WRWKHHFRQRP\RIIRUFHRIHYHU\
RSHUDWLRQ'HFLVLRQVXSSRUWWRROVDUHHPEHGGHGV\VWHPFDSDELOLWLHV
EDWWOHILHOGYLVXDOL]DWLRQLV³FXWWLQJHGJH´HDVHRILQIRUPDWLRQWUDQVIHU
FRQWULEXWHVWRXQSDUDOOHOHGEDWWOHILHOGDJLOLW\DQGFRPPDQGHUHIILFLHQF\WR
H[HUFLVHFRPPDQGDQGFRQWUROLVVXEVWDQWLDOO\LPSURYHG

7KHIROORZLQJ&3FRQILJXUDWLRQJUDSKLFLVSURYLGHGDVDQH[DPSOHRQO\
7KHEDWWDOLRQFRPPDQGHUDQGKLVVWDIIZLOOGHWHUPLQHWKHFRQILJXUDWLRQ
WKDWEHVWPHHWVWKHLU$%&6DOORFDWLRQDQG072(HTXLSPHQWGLVWULEXWLRQ

6DPSOH'LJLWDO&3&RQILJXUDWLRQ






(175$1&(

¶ [¶

35,17(5

6 (1*




6 )6(

&23 &23

(175$1&(

)%&%
/$5*(6&5((1

$)$7'6
6
',63/$<6

0&6

   

$6$6

6<67(0

&211(&7,216 


8QLWVKDYHDQRYHUDUFKLQJUHTXLUHPHQWWRWUDLQIRUGLJLWL]DWLRQDQGWKH6
FDQJUHDWO\DVVLVWZLWKWKHVHUHTXLUHPHQWV'LJLWDOVNLOOVDUHSHULVKDEOH,I
\RXFRPSRXQGWKLVSHULVKDELOLW\ZLWKSHUVRQQHOWXUEXOHQFHLQXQLWVWKH6
LVIDFHGZLWKDQHQRUPRXVFKDOOHQJHWRDVVLVW6ROGLHUV/HDGHUVDQGXQLWV
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
LQJDLQLQJV\VWHPIRFXVHGVNLOOVDQGUHPDLQSURILFLHQWLQGLJLWDO
RSHUDWLRQV:KHWKHUXQLWVDUHVROHO\DQDORJLQWUDQVLWLRQWRGLJLWL]DWLRQRU
HTXLSSHGZLWKDIXOOVXLWHRI$%&6WKHQHHGWRWUDLQDQGPDLQWDLQ
SURILFLHQF\LVHYHUSUHVHQW

:KHQHYHUDQGZKHUHYHU$%&6WUDLQLQJFDQRFFXULWVKRXOGEH
SXUVXHGGXULQJGD\WRGD\JDUULVRQDFWLYLWLHVZHHNHQGGULOOVLQIRUPDWLRQ
WUDQVIHUEHWZHHQ+4HWF8QLWVWDIIRIILFHUVPXVWEHPRUHWKDQMXVW
WDFWLFDOO\SURILFLHQW7KH\PXVWDOVREHGLJLWDOV\VWHPVH[SHUWVQRWMXVWDV
SRWHQWLDORSHUDWRUVEXWPRUHLPSRUWDQWO\WRJXLGHDQGLQIOXHQFHVWDII
RSHUDWLRQVZLWKLQWKHLUUHVSHFWLYH:))V

 $*67#

ƒ 7KH6VKRXOGSXWRXWWDVNLQJVIRUDOOQHFHVVDU\HTXLSPHQW
• $%&6V\VWHPV
• *HQHUDWRUV
• 6XSSRUWSHUVRQQHO
• 9HKLFOHV±&33-11&31
• 3URMHFWLRQV\VWHPV
ƒ 7KH72&OD\RXWVKRXOGEHGUDZQRQSDSHUDQGDYDLODEOHIRUDOOWRVHH
ƒ 7KHSK\VLFDOVHWXSRIWKH72&VKRXOGEHVXSHUYLVHGE\WKH1&2,&V
RIHDFKEDWWOHVWDIIVHFWLRQ
ƒ 'RQRWUXQFDEOHVXQWLO72&WDEOHVDUHLQSODFHDQGDOOV\VWHP
ORFDWLRQVKDYHEHHQLGHQWLILHG
ƒ (VWDEOLVKWHFKQLFDOZRUNLQJJURXSVZLWK)65VSDUWLFLSDWLQJXQLW6
SHUVRQQHODQGWHFKQLFDOUHSUHVHQWDWLYHV
ƒ &RQGXFWPRUQLQJFRRUGLQDWLRQVHVVLRQVZLWKWKHWHFKQLFDOZRUNLQJ
JURXSHVSHFLDOO\GXULQJ72&VHWXS
ƒ &RQGXFWDIWHUQRRQKRWZDVKHVZLWKWKHVDPHJURXS
ƒ (VWDEOLVKDKHOSGHVNWRWUDFNDQGUHVROYHSUREOHPV
ƒ 'HYHORSDUHFRYHU\SODQLQFDVHRIXQIRUHVHHQSUREOHPV

/33/%'**($*'22 $.7/%.454(4*4$.4%*)$4+4*'( 

ƒ 6HWILOWHUV 6KRXOGEHGHVLJQDWHGLQ7$&623 
ƒ &UHDWHGLVWULEXWLRQOLVWVIRUIUHTXHQWO\XVHGDGGUHVVHV
ƒ 0DSGULYH 6KRXOGEHGHVLJQDWHGLQ7$&623 
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
ƒ &UHDWHRYHUOD\VLQFRPPRQWDFWLFDOSLFWXUH &73 VDYHRQ
2YHUOD\([SORUHU
ƒ 8VHVWDQGDUGQDPLQJDQGFRORUFRQYHQWLRQVIRURYHUOD\V 7$&623 
ƒ 3RVWSURGXFWVWR0&6ZHESDJHDVEDFNXS
ƒ 6HQGVHFWLRQSURGXFWVWRGHVLJQDWHGVKDUHGIROGHU V 
ƒ 6HQGIUHHWH[WPHVVDJHWRQRWLI\SRVWLQJRISURGXFWV
ƒ 5HWULHYH%'(SURGXFWVIURPZHEVLWH
ƒ 3HUIRUPVQDSVKRWVVFUHHQFDSWXUHVRUSOD\EDFN
ƒ (VWDEOLVKPDSFKDUWWDEDQGPDSVFDOHIRU$2,DQG$2
ƒ &RQGXFWGLJLWDOUHKHDUVDO

4+4*'( '**($*'22'.0%*$+&'*4/%

7KLVIROORZLQJSURYLGHVWKH6ZLWKDQLQGHSWKORRNDWPDQ\RIWKHVNLOOV
DQGFULWLFDOGLJLWDOWDVNVUHTXLUHGWRHIIHFWLYHO\H[HFXWHGLJLWDO&3
RSHUDWLRQV7KHWDVNOLVWLVQRWPHDQWWREHDOOLQFOXVLYHRIWKHP\ULDGWDVNV
WKDWPD\QHHGWREHSHUIRUPHGWRDFKLHYHDVXFFHVVIXOPLVVLRQHQGVWDWH
7KH\GRKRZHYHUKLJKOLJKWFRPPRQEDWWOHVWDIIUHVSRQVLELOLWLHVDQG
SURYLGHLQVLJKWUHJDUGLQJVWDIILQWHJUDWLRQ:KHQFRQVLGHULQJWKHWRS
VHYHQQHHGVRIWKHFRPPDQGHUGXULQJ72&RSHUDWLRQV IULHQGO\ORFDWLRQV
FXUUHQWHQHP\VLWXDWLRQUXQQLQJHVWLPDWHJUDSKLFFRQWUROPHDVXUHV
)5$*2VFRPPDQGHU¶V6,75(3ILUHVXSSRUWFRRUGLQDWLRQPHDVXUHV±
FDSDELOLW\RYHUOD\V WKH\DUHFOHDUO\UHSUHVHQWDWLYHRIWKHW\SHGLJLWDOWDVNV
WKDWPXVWEHHIILFLHQWO\DQGHIIHFWLYHO\H[HFXWHG

0XFKRIWKLVLQIRUPDWLRQZDVGHULYHGIURPD8QLWHG6WDWHV$UP\5HVHDUFK
,QVWLWXWHVWXG\'LJLWDO72&,QWHJUDWLRQ*XLGHFRPSOHWHGLQ-XQH

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

7DVN(VWDEOLVKDQG0DQDJHWKH&23
:))0RYHPHQWDQG0DQHXYHU

68%7$6.6 67$))773DQG&216,'(5$7,216

‡ 6DYH0&6RYHUOD\V
8VHWHFKQLTXHVWRUHGXFHWLPH
‡ 6HQGRYHUOD\VWRVHUYHUQRWLI\DSSURSULDWHVWDIIVHFWLRQYLDIUHHWH[WPHVVDJH
UHTXLUHGWRSUHSDUHGLJLWDO
‡ 'HWHUPLQHKRZLQIRUPDWLRQZLOOEHPDQDJHGIRUHDVHRIUHWULHYDO
RYHUOD\V
‡ (QVXUHWKH7$&623VSHFLILHVQDPLQJFRQYHQWLRQVDQGIROGHUVHWXS
‡ (QVXUHXVHUVNQRZKRZWRZRUNRQWKHVDPHRYHUOD\ILOHDWRQFH
0DNHVXUHRYHUOD\VDUH
‡ ,QFOXGHFRYHUILOWHUVHWWLQJVDQGKRZWRWDLORUWKHPIRU0(777&LQWKH
UHDGLO\DYDLODEOHWRDOO:))V
7$&623
DQGHFKHORQV
‡ 'HVLJQDWHZKRLVWRZDWFKIRU&&,53,5'3IULHQGO\IRUFHVLQIRUPDWLRQ
UHTXLUHPHQWV )),5 
8VHGLJLWDOV\QFKPDWUL[WR
‡ (QVXUH72&ODUJHVFUHHQGLVSOD\VKRZV,QIRUPDWLRQ7UDFNHU
HQVXUHFULWLFDOLQIRUPDWLRQ
‡ 'HWHUPLQHWKHQRWLFHDEOH&23GLIIHUHQFHVEHWZHHQ72&V
JUDEVWKHXQLW¶VDWWHQWLRQ
‡ (QVXUHPXOWLSOHPDSYLHZVDUHGLVSOD\HG
‡ &UHDWHVKDUHGIROGHUV
‡ +DYHRSHUDWRUVGLVSOD\/LYH)HHGVRQWKHPDS
‡ %XLOG6\QFK0DWUL[ 0&6
‡ 3RVW&&,53,5'3)),5DQG6\QFK0DWUL[DQGH[SRUWWKDWLQIRUPDWLRQWR
DQ([FHO6SUHDGVKHHWWREHXVHGDVSDUWRIDSODQ
‡ $VVLJQUHVSRQVLELOLW\ WR%DWWOH&DSWDLQRU6 IRUPRQLWRULQJDQGUHSRUWLQJ
,QIRUPDWLRQ7UDFNHUHYHQWV 0&6
‡ 0RQLWRU&&,53,5'3)),5XWLOL]LQJ,QIRUPDWLRQ7UDFNHU 0&6 DQG
6\QFK0DWUL[XWLOL]LQJ0&6
‡ &KHFNWKDW,QIRUPDWLRQ7UDFNHUGLVSOD\V&&,53,5'3)),5
‡ 7KH%DWWOH&DSWDLQRU6VKRXOGPRQLWRUHYHQWVDQGDGYLVHWKH&RPPDQGHU
DQGVWDII(YHQWVPXVWQRWRFFXUZLWKRXWWKH&RPPDQGHUEHLQJQRWLILHG



7DVN(VWDEOLVKDQG0DQDJHWKH&23 FRQW 
:)),QWHOOLJHQFH

68%7$6.6 67$))773DQG&216,'(5$7,216

(QKDQFH&RPPDQGHU¶V ‡ &RUUHODWH5HGGDWD 0(777&VSHFLILF DQGGLVVHPLQDWH $6$6/


YLVXDOL]DWLRQRIWKHHQHP\DQG ‡ &UHDWHRYHUOD\V HJ5HG6,77(030&22 
UHODWHHQHP\FDSDELOLWLHVWR ‡ &UHDWHVKRUWFXWVWRGHVNWRSVWRVSHHGXSDQDO\WLFDORSHUDWLRQ $6$6/
%OXH)RUFHV ‡ 5HWULHYH:HDWKHU(IIHFWV2YHUOD\IURP%'(ZHEVLWH $6$6/
‡ &UHDWH:HDWKHU(IIHFWV0DWUL[ :(0 
‡ (QVXUH7$&623VSHFLILHVKRZWRFUHDWHVDYHDQGGLVVHPLQDWHRYHUOD\V
(QVXUHZHDWKHUSLFWXUHLV ‡ (QVXUH7$&623WHOOVKRZRIWHQWRGLVWULEXWHWKH6,77(03 0(777& 
UHDGLO\DYDLODEOHWRDOO ‡ $UHSUHVFULEHGVKRUWFXWVOLVWHGLQ7$&623IRU$6$6/"
:))V DQGHFKHORQV ‡ :KDWSURFHGXUHVGRHV6XVHWRFDSWXUHLPDJHV"
‡ +RZGRHV6REWDLQZHDWKHUHIIHFWVLQIRUPDWLRQ"
‡ (QVXUH:(0FRORUFRGHVDUHOLVWHGLQ7$&623
‡ (QVXUH&RQGHQVHG:HDWKHU,PSDFWV:HDWKHU,PSDFWV'LDORJ:LQGRZ
IXQFWLRQLVXVHGLQWKH0'03
‡ (QVXUH72&KDVODWHVW6,77(03SRVWHGRULQ2YHUOD\([SORUHUIRUTXLFN
SRVWLQJ
‡ 2SHUDWRUVVKRXOGVHQGRYHUOD\VWRGHVLJQDWHG0&6IROGHUV



%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  



7DVN(VWDEOLVKDQG0DQDJHWKH&23 FRQW 
:)))LUH6XSSRUW

68%7$6.6 67$))773DQG&216,'(5$7,216

(QVXUHFRPSOHWHSLFWXUHRI ‡ (QVXUHFRPSOHWHSLFWXUHRIILUHVXSSRUWDVVHWVFRYHUDJHDQGWDUJHWVLVUHDGLO\
ILUHVXSSRUWDVVHWVFRYHUDJH DYDLODEOHWRDOO:))V DQGHFKHORQV
DQGWDUJHWVLVUHDGLO\DYDLODEOH ‡ &UHDWH&XHLQJ2YHUOD\/LVWVWRLQFOXGH4UDGDUSRVLWLRQVDQGUDQJH
WRDOO:))V DQGHFKHORQV IDQ $)$7'6
‡ &UHDWH)LUH6XSSRUW7DUJHWVDQG&RRUGLQDWLRQ0HDVXUHV2YHUOD\ $)$7'6
‡ &UHDWH&DSDELOLWLHVDQG/LPLWDWLRQV2YHUOD\GHSLFWLQJZHDSRQV\VWHPV
ORFDWLRQVDQGUDQJHIDQV $)$7'6
‡ &UHDWH2EVHUYHG3ODQV2YHUOD\OLVWLQJ
‡ &KHFN7$&623OLVWILOHQDPLQJDQGFRORUFRQYHQWLRQVIRUILUHVXSSRUW
RYHUOD\V
‡ (QVXUHRSHUDWRUVNQRZKRZWRVHQGRYHUOD\VWR0&6DQGRWKHU$)$7'6
ZRUNVWDWLRQV
‡ &KHFNWKDWWKH72&&23GLVSOD\DUWLOOHU\XQLWVDQGUDGDUUDQJH IDQV
‡ (QVXUH)6&0V DUHGLVSOD\HGOLVWHG
‡ &KHFNWKDWWKH72&KDVWKHODWHVWILUHVXSSRUWRYHUOD\SRVWHGRULWLVLQ
2YHUOD\([SORUHUIRUTXLFNSRVWLQJ



7DVN(VWDEOLVKDQG0DQDJHWKH&23 FRQW 
:))3URWHFWLRQ


68%7$6.6 67$))773DQG&216,'(5$7,216

3URYLGHOHDGHUVWKHDELOLW\WR ‡ ,QWHJUDWHXSGDWHGLJLWDOWHUUDLQSURGXFWV
UHODWHNH\WHUUDLQDQGNQRZQ ‡ &UHDWHZHEVLWHIROGHUVIRUPDSSURGXFWV
REVWDFOHVWRWKHVFKHPHRI ‡ &UHDWH2EVWDFOHRYHUOD\2EVWDFOH3ODQ
PDQHXYHU ‡ 1RWLI\RWKHUVHFWLRQVZKHQREVWDFOHVXUYLYDELOLW\DQGPDS
SURGXFWVDUHDYDLODEOH
(QVXUHDLUGHIHQVHFRYHUDJHLV
‡ (QJLQHHUFRRUGLQDWHZLWK6RQHQHP\REVWDFOHRYHUOD\
FRPSOHWHRYHUODSSLQJDQG
‡ (QJLQHHUFRRUGLQDWHZLWK6IRUWHUUDLQDQDO\VLVDQG0&22
UHDGLO\DYDLODEOH
‡ &KHFNWKDWWKH72&KDVWKHODWHVWREVWDFOHRYHUOD\SRVWHGRULQ
2YHUOD\([SORUHUIRUTXLFNSRVWLQJ
‡ (QVXUH72&GLVSOD\VGLJLWDOWHUUDLQPDSSURGXFWVDVSDUWRIWKH&23
‡ 'HWHUPLQHKRZVWDIIVHFWLRQVDFFHVVPDSSURGXFWV
‡ &RRUGLQDWHWUDFN$'$DVVHWVDQGFRYHUDJHRIVXSSRUWHGIRUFH
‡ &KHFNWKDW7$&623VSHFLILHVGLVWULEXWLRQRI$'$RYHUOD\V
‡ (QVXUH&23GLVSOD\VZHDSRQDQGVHQVRUFRYHUDJH
‡ (QVXUHDLUFUDIWWUDFNVDUHGLVSOD\HG ORFDWLRQVSHHGIOLJKWGLUHFWLRQ 
‡ &KHFNWKDWWKH72&&23KDVODWHVW$'$RYHUOD\SRVWHGRULQ2YHUOD\
([SORUHUIRUTXLFNSRVWLQJ
‡ (QVXUHWKH$&2LVGLVVHPLQDWHGDQGSRVWHG

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  



7DVN(VWDEOLVKDQG0DQDJHWKH&23 FRQW 
:))&RPPDQGDQG&RQWURO

68%7$6.6 67$))773DQG&216,'(5$7,216

‡ 7DLORU&23,$:&RPPDQGHU¶V*XLGDQFH7$&623DQG0(777&
'HILQHWKH&23DQGGLUHFW 0&6
WDVNRUJDQL]DWLRQLQ ‡ 0DQDJHLQIRGLVSOD\HGLQ72&DQG&23 0&6
DFFRUGDQFHZLWKWKH ‡ 3RVWSURGXFWVWR0&6ZHESDJHDVEDFNXS
&RPPDQGHU¶VLQWHQW ‡ 5HWULHYHSURGXFWVIURP%'(ZHEVLWH
‡ 2QFH5HWUDQVPLVVLRQ7HDPVDUHLQSODFHGLUHFWHDFKWRVHQG)%&%
8VHGLJLWDODVVHWVWRGHWHUPLQH &LUFXODU/LQHRI6LJKW &/26 GDWDWR6
WHUUDLQLPSDFWRQ ‡ 3HUIRUPLQLWLDODQGIROORZXSGLJLWDOFRPPXQLFDWLRQV
FRPPXQLFDWLRQVFRQVLGHUHG ‡ &UHDWH6LJQDO2YHUOD\RQ0&6
‡ 6HQG6LJQDO2YHUOD\WRGHVLJQDWHGIROGHU V RQ0&6
'HYHORSPRQLWRUDQG ‡ 8VH0&6/LQHRI6LJKW /26 WRROZKHQGHWHUPLQLQJEHVWORFDWLRQVIRU
PDLQWDLQFRQQHFWLYLW\RIWKH VLJQDODVVHWV
QHWZRUN ‡ 'HWHFWDQGUHSDLUIDXOWV NH\SODWIRUPVQHWZRUNVV\VWHPV 
‡ &UHDWHDQGLVVXHSDVVZRUGV
0DLQWDLQ&23VHFXULW\ ‡ &RQILUPV\VWHPVFRPSURPLVHGRUFDSWXUHGDQGUHPRWHO\GLVDEOHWKHP
‡ &KHFNWKDWWKH7$&623VSHFLILHV72&QHWZRUNLQLWLDWLRQSURFHGXUHV
‡ (QVXUHFXUUHQWLQIRUPDWLRQLVEHLQJGLVSOD\HGLQWKH72&
‡ 'HWHUPLQHKRZ72&LQIRUPDWLRQLVPDQDJHGWRHQVXUHFRPSOHWH&23
‡ &KHFNWKDWWKH72&KDVWKHODWHVWRSHUDWLRQDOJUDSKLFVSRVWHGRULQ
2YHUOD\([SORUHUIRUTXLFNSRVWLQJ
‡ .QRZKRZWKH6YHULILHVPD[LPXPVLJQDOFRYHUDJH YLD)0IURPVLJQDO
DVVHWVGLJLWDOUHFRQQDLVVDQFH 
‡ ,QVWUXFWWKH6WRVHWXSTXHULHVRIDOOFULWLFDOV\VWHPVSODWIRUPVWREHWWHU
PRQLWRUWKHFRQGLWLRQRIWKHQHWZRUN
‡ (QVXUHWKH7$&623VSHFLILHVSURFHGXUHVWRGLVDEOHSODWIRUPVWKDWDUH
FRPSURPLVHG
‡ (QVXUHHDFKSODWIRUPLVSDVVZRUGSURWHFWHG
‡ 'HWHUPLQHKRZRIWHQWKH6LVVXHVSDVVZRUGV
‡ &KHFNWKDWRSHUDWRUVXQGHUVWDQGWKDWWKHLUSODWIRUPLVFODVVLILHG

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
   

7DVN±0DQDJH'LJLWDO,QIRUPDWLRQ
:))0RYHPHQWDQG0DQHXYHU

68%7$6.6 67$))773DQG&216,'(5$7,216

%DFNXSFULWLFDOLQIRUPDWLRQ ‡ /RJFULWLFDOPHVVDJHVRUGHUVXVLQJ6WDII-RXUQDO 0&6


‡ &DSWXUHVQDSVKRWVRI&23DWSUHGHWHUPLQHGLQWHUYDOVWREDFNXSFULWLFDO
6$LQIRUPDWLRQDQGIHHG$$5V 0&6
6SHHGXSGLVVHPLQDWLRQRI ‡ 3RVWSURGXFWVWR0&6ZHESDJHDVEDFNXS 0&6
LQIRUPDWLRQ ‡ 3HUIRUPVQDSVKRWVVFUHHQFDSWXUHVRUSOD\EDFNIXQFWLRQLQFDVH RI
V\VWHPIDLOXUHRUGHJUDGHGQHWZRUN 0&6
‡ ([SRUW,QIRUPDWLRQ7UDFNHU,WHPVWR([FHOZRUNVKHHWIRU72&EULHIV
DQGGLVVHPLQDWLRQWRVXERUGLQDWHXQLWV 0&6
‡ 6HWILOWHUV,$:7$&623
‡ &UHDWHGLVWULEXWLRQOLVW V IRUIUHTXHQWO\XVHGDGGUHVVHV
‡ 0DQDJHVWDIISURGXFWFUHDWLRQILOLQJDQGGLVWULEXWLRQWRSURWHFW
VXERUGLQDWHHOHPHQWV¶ SODQQLQJWLPH
‡ 0DSGULYHWRRWKHUV\VWHPV,$:7$&623
‡ 8VHVWDQGDUGQDPLQJDQGFRORUFRQYHQWLRQVIRURYHUOD\V
‡ 6HQGVHFWLRQSURGXFWVWRGHVLJQDWHGVKDUHGIROGHU V 
‡ +RZGRHVVWDIIJXDUGDJDLQVWGLJLWDOIDLOXUHV"
‡ :KRLVUHVSRQVLEOHIRU&23VQDSVKRWV"
‡ (QVXUH&RPPDQGHU;2XVH&23VQDSVKRWVWRHQKDQFH$$5V
‡ &KHFNWKDWWKH6WDII-RXUQDOLVPDLQWDLQHGSURPSWO\DQGFRPSOHWHO\
‡ (QVXUHWKH7$&623VSHFLI\SURFHGXUHVDQGGXWLHVIRU72&SHUVRQQHO HJ
PDQDJLQJDQGGLVWULEXWLQJGLJLWDOLQIRUPDWLRQ 
‡ (QVXUHWKHUHDUHSURFHGXUHVOLVWHGLQWKH7$&623RQKRZWRPDSD GULYH
‡ (QVXUHWKHVWDIIJLYHVWZRWKLUGVSODQQLQJWLPHRUPRUHWRVXERUGLQDWH
HOHPHQWV
‡ &KHFNWKDWFULWLFDODVVHWVLQWKHDUHDRIRSHUDWLRQVDUHGHSLFWHGRQDQ
RYHUOD\


‡ 9HULI\WKDWDOOVWDIIHOHPHQWVPDSWKHLUGULYHV,$:7$&623
(QVXUHLQIRUPDWLRQLVUHDGLO\ ‡ %XLOGVKDUHGIROGHUVIRUHDFKVWDIIHOHPHQWRQ0&6
ILQGDEOHDFURVV:))V DQG ‡ &UHDWHRYHUOD\VLQ&73VDYHRQ2YHUOD\([SORUHU
HQVXUH:))V NQRZZKHQ ‡ 8SGDWHRYHUOD\VVHQGWRGHVLJQDWHGIROGHUQRWLI\VWDIIYLDIUHHWH[W
LQIRUPDWLRQLVXSGDWHG PHVVDJH 0&6
‡ 6HQGIUHHWH[WPHVVDJHWRQRWLI\SRVWLQJRISURGXFWV
‡ 5HWULHYHSURGXFWVIURP%'(ZHEVLWH
6DYHWLPHDQGUHGXFH ‡ 9HULI\FRUUHFWRYHUOD\LVEHLQJXSGDWHG
FRQIXVLRQE\YHULI\LQJRYHUOD\ ‡ 3RVWDSSURSULDWHRYHUOD\EHIRUHXVLQJ&/26WRROGLVWDQFHUDWHWRRORU
YHUVLRQV ZHDSRQVUDQJHIDQ 0&6
‡ :DUJDPHXVLQJ0&6
‡ 8VH1HW0HHWLQJ:KLWHERDUGWRROV 0&6 IRUFROODERUDWLYHSODQQLQJDQG
EDWWOHILHOGXSGDWHEULHI
‡ 2UFKHVWUDWHGLJLWDOVWDIIUHKHDUVDOXVLQJ:KLWHERDUGRU:DUJDPLQJ 0&6
‡ 8VH8QLW+LVWRU\2YHUOD\ZKHQFRQGXFWLQJ$$5V 0&6








%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 ! 


7DVN±0DQDJH'LJLWDO,QIRUPDWLRQ FRQW 
:)),QWHOOLJHQFH

68%7$6.6 67$))773DQG&216,'(5$7,216

(QVXUH5('SLFWXUHLV ‡ &RQWLQXRXVO\LQWHJUDWHGDWDIURP*URXQG&RQWURO6WDWLRQ *&6 UDGDU-67$56XQPDQQHG


FXUUHQWDQGSURYLGHVWKH DHULDOYHKLFOH 8$9 VHQVRUVDQG)%&%63275HSRUWVWRNHHSFRUUHODWHG5HGSLFWXUH
LQIRUPDWLRQWRHQKDQFHWKH FXUUHQW $6$6/
FRPPDQGHU¶VGHFLVLRQ ‡ 3URYLGHLQWHJUDWHGLQWHOOLJHQFHLQSXW ,65$QQH[LQFOXGLQJ,65RYHUOD\6,77(03DQG
PDNLQJ &ROOHFWLRQ0DWUL[ WR2325' $6$6/
‡ 5HFHLYHEDWWOHGDPDJHDVVHVVPHQW %'$ GDWDIURP)6(HQJLQHHUV 5HFRQQDLVVDQFHDVVHWVDQG
6HWILOWHUVDQGDOHUWVWR RWKHUVTXLFNO\XSGDWH5HGSLFWXUHGLVVHPLQDWH $6$6/
UHVSRQGWRLQIRUPDWLRQQHHGV ‡ 8WLOL]H*D]HWWHHUWRROWRUDSLGO\UHWULHYHQDPHVFRRUGLQDWHVRI SODFHVDQGIHDWXUHVWRROORFDWHV
HQDEOLQJEHWWHU68DQGIDVWHU DQGMXPSVWRORFDWLRQRQPDS
GHFLVLRQV ‡ ,GHQWLI\IHDWXUHVWKDWH[LVWZLWKLQDNQRZQJHRJUDSKLFDODUHD $6$6/
‡ (QDEOH1HW0HHWLQJ'HVNWRS6KDULQJWRFROODERUDWHDQGWUDQVIHUILOHVLQWHULQWUD72& $6$6
/
‡ &UHDWHVSHHGGLDOLQJOLVWIRUIUHTXHQWO\FDOOHGV\VWHPVLQ1HW0HHWLQJ $6$6/
‡ 8WLOL]H4XLFN)RUPVIRUFRPEDWPHVVDJHGDWDFROOHFWLRQDQGGLVVHPLQDWLRQ $6$6/
‡ &UHDWH6KDUHG1HWZRUN'LUHFWRU\IRUFRPPRQSODFHWRVWRUHGDWDQHHGHGE\DOODQDO\VWVRQ
QHWZRUN $6$6/
‡ 8VH$6$6/ZLWKVLQJOHFKDQQHOJURXQGWRDLUUDGLRVHW 6,1&*$56 DVDOWHUQDWHPHDQVRI
WUDQVPLWWLQJGDWDZKHQQHWZRUNKDVFUDVKHGRULVGHJUDGHG
‡ &UHDWH'PRGHORIDPDSDQGGHYHORSDIOLJKWPRGHOXVLQJ'%DWWOHILHOG9LVXDOL]DWLRQ7RRO
$6$6/
‡ 6SHHGXSWKHDQDO\VLVSURFHVVE\XWLOL]LQJ9LVXDO$QDO\VW7RROVHWWRYLHZPXOWLSOHGRFXPHQWV
$6$6/
‡ 8VH6LGHDUPIXQFWLRQWRDFFHVVDQQRWDWHFURSHGLWDQGGLVSOD\LPDJHVZLWK$6$6/
‡ 6HW$6$6DOHUWVDQGZDUQLQJVEDVHGRQ&&,5'33,5)),5
‡ (QVXUH7$&623VSHFLILHVSURFHGXUHVIRULQWHJUDWLQJDQGDQDO\]LQJ DOOVRXUFHGLJLWDOGDWD
‡ (QVXUH7$&623WHOOVKRZRIWHQDFFRUGLQJWR0(777&6VKRXOGGLVVHPLQDWHFRUUHODWHG5HG
SLFWXUHWRORZHU7,
‡ 'HWHUPLQHKRZRIWHQFRUUHODWHG5HGSLFWXUHLVGLVVHPLQDWHG
‡ &KHFNWKDWWKH6SURMHFWVFRQWDFWRUHQHP\&2$V DQGUHOD\VWRWKH6
‡ 'HWHUPLQHKRZTXLFNO\WKH6UHVSRQGVWR,65GLVFRYHULHVDQGFROODERUDWHVZLWKWKH6WR
DGMXVWSODQV
‡ &KHFNWKDWWKH6FRQVLGHUVWKHUHDUWKUHDWDQGUHODWHVLWWRWKHDGPLQLVWUDWLYHORJLVWLFDORSHUDWLRQV
FHQWHU $/2& FRPEDWWUDLQVFRPPDQGSRVW &7&3 
‡ (QVXUH6KDVWKH)6(IRUZDUG%'$GDWDDXWRPDWLFDOO\
‡ (QVXUHWKH6FRRUGLQDWHVZLWKWKH$&7IRULQWHJUDWLRQDQGDQDO\VLVRILQWHOOLJHQFHGDWD
‡ &KHFNWKDWWKH6LVSRVWLQJXSGDWHGGDWDLQWRWKH-&'%DVUHG
‡ &KHFNWKDWWKH*D]HWWHHUWRROEHLQJXVHG
‡ (QVXUH6SHUVRQQHONQRZSURFHGXUHVWRWUDQVIHUGDWDYLD$6$6/$136&5DGLR
‡ (QVXUH6SHUVRQQHOFROODERUDWLQJDQGGLVVHPLQDWLQJLQIRUPDWLRQYLD1HW0HHWLQJ
‡ &KHFNWKDW4XLFN)RUPVDUHEHLQJXVHGWRGLVVHPLQDWHLQIRUPDWLRQ WRKLJKHUORZHUDQGDGMDFHQW
XQLWV
‡ (QVXUHDVKDUHGQHWZRUNGLUHFWRU\KDVEHHQFUHDWHG
‡ (QVXUH6FUHDWHVVSHHGGLDOLQJOLVWV
‡ (QVXUHWKHUHSURFHGXUHVOLVWHGLQWKH7$&623IRUWKHXVHRIWKH$6$6/ZLWKWKH6,1&*$56
UDGLRDQG6SHFLDO3XUSRVH7DFWLFDO&RPPXQLFDWLRQ,QWHUIDFHFDUG 637&,0 LQVWDOOHGRQ$6$6
/
‡ &KHFNWKDWWKH'%DWWOHILHOG9LVXDOL]DWLRQ7RROEHLQJXVHGE\6SHUVRQQHO
‡ (QVXUH6SHUVRQQHODUHXWLOL]LQJWKH9LVXDO$QDO\VW7RROVHWWRHQKDQFHWKHDQDO\VLVSURFHVV
‡ &KHFNWKDWWKH6LGHDUP)XQFWLRQLVEHLQJXVHGWRPDQDJHLPDJHV





%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 " 

7DVN±0DQDJH'LJLWDO,QIRUPDWLRQ FRQW 
:)))LUH6XSSRUW


68%7$6.6 67$))773DQG&216,'(5$7,216

(QVXUHDOO:))V DQGHFKHORQV ‡ (QVXUHDOO:))V DQGHFKHORQVXQGHUVWDQGLQWHJUDWLRQRIILUHVDQGPDQHXYHU


XQGHUVWDQGLQWHJUDWLRQRI ‡ %ULGJHJDSVEHWZHHQGLIIHUHQWV\VWHPV
ILUHVDQGPDQHXYHU ‡ 'HYHORSDQGXSGDWH$*0LQFROODERUDWLRQZLWK6DQG66DYHWR0&6DQGGLVVHPLQDWH
WR%1)6( $)$7'6
%ULGJHJDSVEHWZHHQGLIIHUHQW ‡ 'HYHORS)LUH6XSSRUW([HFXWLRQ0DWUL[ $)$7'6 DQGGLVVHPLQDWHWR6DQG%1)6(
V\VWHPV ‡ 0DQXDOO\HQWHU7DUJHW6HOHFWLRQ6WDQGDUGV 766 LQWR$)$7'6
‡ 6\QFKURQL]HILUHVXSSRUWSODQZLWKVXERUGLQDWH),67)6( $)$7'6
(QDEOH)62WRFRQGXFW ‡ 8VH(IIHFWV0DQDJHPHQW7RRO (07 7DUJHW/LVW:RUNVKHHWWRFUHDWHWDUJHWVRUH[SRUW
PXOWLSOHILUHVXSSRUW LPSRUWWRDQGIURPRWKHUV\VWHPV4XHU\(07IRUJHRPHWULHVWDUJHWVDQGXQLWUHSRUWV
RSHUDWLRQVLQFRQMXQFWLRQZLWK ‡ 0RQLWRU)6PLVVLRQVXWLOL]LQJ0LVVLRQ6WDWXV6FUHHQ (07
$)$7'6 ‡ 7HPSODWHWDUJHWVXVLQJ7DUJHW7\SH:RUNVKHHW (07
‡ 6HW $)$7'6 ILOWHUVWRDXWRPDWLFDOO\IRUZDUG%'$GDWDWR6
‡ 6HQGSURGXFWVWR0&6VXFKDV5DGDU'HSOR\PHQW2UGHU 5'2 DQG$UWLOOHU\6ORSH
2YHUOD\
‡ )6(SHUVRQQHOXWLOL]H(IIHFWV0DQDJHPHQW7RRO (07 WRPRQLWRUILUHVXSSRUWRSHUDWLRQV
‡ &KHFNWKDWWKH'HFLGH'HWHFW'HOLYHU$VVHVV '$ SURFHVVLVXSGDWHG
‡ (07WDUJHWLQJZRUNVKHHWVVKRXOGEHXVHGDW)6(ZRUNVWDWLRQV
‡ &KHFNWKDWWKH(07KDVWKHFRUUHFW7DUJHW7\SH:RUNVKHHW
‡ 0&6 66(& DQG$)$7'6RSHUDWRUVVKRXOGNQRZWKHXQLTXHSURFHGXUHVUHTXLUHGWR
H[FKDQJHLQIRUPDWLRQLQVKDUHGIROGHUV
‡ (QVXUHWKH7$&623VSHFLILHVSURFHGXUHVIRU)6(WRDXWRPDWLFDOO\IRUZDUG%'$GDWDWR
$6$6
‡ 7KH)6(VKRXOGDXWRPDWLFDOO\UHFHLYH%'$DWWKHHQGRIDILUHPLVVLRQ
‡ $)$7'6RSHUDWRUVVKRXOGVHWXSGLVWULEXWLRQOLVW V IRUIUHTXHQWO\XVHGDGGUHVVHV
‡ &KHFNWKDW$)$7'6RSHUDWRUVFDQHDVLO\UHWULHYHILOHVIURPWKH0&6ZHEVLWH
‡ &KHFNKRZRIWHQ)6(SHUVRQQHOXSGDWHWDUJHWLQIRUPDWLRQLQWKH$*0
‡ &KHFNWKDWWKH(07LVIXQFWLRQDOO\FRQQHFWHGWR$)$7'6
‡ )6(SHUVRQQHOVKRXOGXVHWKH0LVVLRQ6WDWXV6FUHHQWRPRQLWRUILUHVXSSRUWRSHUDWLRQV
‡ 7KH)6(PXVWFORVHO\PRQLWRUVXERUGLQDWHHOHPHQWVGXULQJ,65RSHUDWLRQV
‡ $VVLVW66ZLWKSODQQLQJDQGHPSOR\PHQWRIVXERUGLQDWHHOHPHQWV


















%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

7DVN±0DQDJH'LJLWDO,QIRUPDWLRQ FRQW 
:))3URWHFWLRQ

68%7$6.6 67$))773DQG&216,'(5$7,216
3URYLGHXSWRGDWHWHUUDLQ ‡ &RRUGLQDWHZLWK6UHJDUGLQJWHUUDLQDQGZHDWKHUDQDO\VLV
SURGXFWVHQKDQFLQJ68RI ‡ 3URYLGHWHUUDLQSURGXFWVDQGWDFWLFDOGHFLVLRQDLGVWRRWKHUVWDIIHOHPHQWV
EDWWOHVSDFH ‡ ,GHQWLI\KLJKVSHHGPRELOLW\FRUULGRUVFURVVFRXQWU\WUDYHOURXWHVDQG/26DQDO\]HWHUUDLQ
GDWD
6DYHWLPHZLWKTXLFNDFFHVVWR ‡ &UHDWHVKRUWFXWVWRIUHTXHQWO\XVHGDSSOLFDWLRQVRQ0&6&ODVVLILFDWLRQ%DQQHU
DSSOLFDWLRQV ‡ $VVLVW6LQSUHSDULQJWKH0&22 0&6
‡ &RQWLQXRXVO\XSGDWH&22VHQGWR6 0&6
(QVXUHLQIRUPDWLRQLVFXUUHQW ‡ $QDO\]HZHDWKHULPSDFWRQFXUUHQWDQGIXWXUHWHUUDLQ
DQGDFFXUDWH ‡ &RRUGLQDWHZLWK)6(IRUDUWLOOHU\FRYHUDJHRIREVWDFOHV
‡ 'LVVHPLQDWH/RFDO$LU'HIHQVH:DUQLQJV /$': YLD)0WRVXERUGLQDWHXQLWV
(QVXUHUHOLDELOLW\DQG
‡ 8SGDWHVHQVRUDQGZHDSRQVFRYHUDJHDLUVSDFHFRQWUROPHDVXUHVWKUHDWORFDWLRQVDQG
FRQQHFWLYLW\EHWZHHQ
SODQQHGXQLWSRVLWLRQV
$0':6DQG)$$'
‡ 3RVLWLRQDQGLQWHJUDWHUDGDUDVVHWVIRUHDUO\ZDUQLQJRIHQHP\DLUFUDIWDQG$'$FRYHUDJHRI
$FFHOHUDWH(DUO\:DUQLQJ %OXHIRUFHV
F\FOH ‡ %URDGFDVW(DUO\:DUQLQJ
‡ 'HWHUPLQHPRVWHIIHFWLYH$'$V\VWHPDJDLQVWVSHFLILFHQHP\DLUWDUJHW
2SWLPL]H$'$ZHDSRQV ‡ &KHFNDYHQXHVRIDSSURDFKDQGSODFHPHQWRIZHDSRQVDQGVHQVRUV
HIIHFWV ‡ (QVXUHWKH7$&623OLVWVSURFHGXUHVIRUVWDQGDUGL]LQJWKHWHUUDLQ DQGREVWDFOHSLFWXUH
‡ 'HWHUPLQHZKDWWHUUDLQSURGXFWVDQGGHFLVLRQDLGVDUHQHHGHG
‡ .QRZWKHFDSDELOLWLHVIRUWHUUDLQHYDOXDWLRQ
‡ 8VHWHUUDLQSURGXFWVIRUZDUJDPLQJDQGUHKHDUVDOV
‡ (QVXUHWKH0&22LVRYHUODLGRQWHUUDLQLPDJHU\
‡ +DYHRSHUDWRUVVHWXSGLVWULEXWLRQOLVW V IRUPRVWIUHTXHQWO\XVHGDGGUHVVHV
‡ 'HWHUPLQHKRZWKHHQJLQHHUREVWDFOHSODQLVV\QFKURQL]HGZLWKWKHILUHVXSSRUWSODQ
‡ 'HWHUPLQHKRZ(QJLQHHU6SHUVRQQHOSUHSDUHDQGFRRUGLQDWHWKH&22DQG0&22
‡ (QVXUHWKH(QJLQHHUIRUZDUGVWKH&22WRWKH6
‡ (QVXUH7$&623DGGUHVVHVKRZWRLQWHJUDWHVPRNHRSHUDWLRQVZLWKFULWLFDOFRQFHDOPHQW
RSSRUWXQLWLHV HJEUHDFKEULGJHFURVVLQJ 
‡ (QVXUH%'$GDWDLVUHFHLYHGDQGUHOD\HGWR$6$6/
‡ (QVXUH7$&623GHILQHVFRGHZRUGV³'\QDPLWH´ 5HG ³/RRNRXW´ <HOORZ DQG
³6QRZPDQ´ :KLWH WRDOHUWXQLWVRILPSHQGLQJDWWDFN
‡ .QRZKRZWKH$'$(/0GLVVHPLQDWHV/$':V
‡ &KHFNWKDW$'$DOHUWVDUHVHWIRUHQHP\DLUDQGIRUFKDQJHVLQRUGHUVRUFRQWUROPHDVXUHV
‡ 2SHUDWRUVVKRXOGSRVWEDFNXSFRSLHVRI$'SURGXFWVWR0&6ZHESDJH
‡ 0DQQHGUDGDUORFDWLRQVVKRXOGEHGLVSOD\HGRQRSHUDWLRQDOJUDSKLFVLQ72& EDVHGRQ
)%&%WUDQVPLVVLRQ 
‡ 8VH3OD\EDFNIHDWXUHLQ7UDFN+LVWRU\IRU$$5V
‡ 'HWHUPLQHKRZ$'$SHUVRQQHOV\QFKURQL]H$'$DFWLYLWLHVZLWKPDQHXYHUDQGDYLDWLRQ
SODQV
‡ (QVXUH7$&623GHILQHVSURFHGXUHVIRUPDQDJLQJDLUVSDFHLQIRUPDWLRQDQGPDLQWDLQLQJ$'
SLFWXUH
‡ $VVHQVRUVDQGZHDSRQVV\VWHPVPRYHNQRZKRZWKHLUORFDWLRQVDUHXSGDWHGLQWKH72&




%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

7DVN±0DQDJH'LJLWDO,QIRUPDWLRQ FRQW 
:))&RPPDQGDQG&RQWURO

68%7$6.6 67$))773DQG&216,'(5$7,216

6DYHWLPHZLWKTXLFNDFFHVVWR ‡ &UHDWHVKRUWFXWVWRIUHTXHQWO\XVHGDSSOLFDWLRQVRQ0&6 0DSVDQG


DSSOLFDWLRQV 2YHUOD\V0'03$DQG7DVN2UJDQL]DWLRQDWDPLQLPXP 
‡ &UHDWHSODQLQ0&6IRUORFDODFFHVV 0\6\VWHP UHPRWHGDWDEDVH 0&6
(QVXUHLQIRUPDWLRQLVUHDGLO\ 6HUYHU 
DYDLODEOHDQGXSGDWHG ‡ 6HQGVWDIIHOHPHQWEULHILQJVWRGHVLJQDWHGIROGHUVRQ0&6UHWULHYHZLWK
0&6VDYHLQ2YHUOD\([SORUHUIRUTXLFNDFFHVVGXULQJ%8%
0DQDJHKHDOWKRIQHWZRUN ‡ 8VH0&6+LJKOLJKW&KDQJHVIXQFWLRQWRWUDFNXQLWRUJUDSKLFVFKDQJHVRYHU
DQGSURPRWHHIIHFWLYH WLPHDQGWRVXSSRUW%8%
FRPPXQLFDWLRQV ‡ 8WLOL]H6WDII-RXUQDO 0&6 WRPDLQWDLQKLVWRULFDOUHFRUGRINH\ HYHQWV
‡ ([HFXWH72&-XPSWRTXLFNO\WUDQVIHUILOWHUVRYHUOD\VDQGUHPRWHDFWLYH
0DQDJHKHDOWKRIQHWZRUN IROGHUV WRLQFOXGHHQHP\DQGIULHQGO\ORFDWLRQV SULRUWRPRYLQJ72&
DQGSURPRWHHIIHFWLYH ‡ 5HSRUW%OXH)RUFH7UDFNLQJXQLWVE\LFRQYHULILFDWLRQ
FRPPXQLFDWLRQV ‡ 8VH0&6WRFUHDWHQHWZRUNDFFHVVSODQ ORFDODFFHVVVKDUHGDFFHVVUHPRWH
GDWDEDVH 
‡ 0RQLWRUQHWZRUNDQGGHWHUPLQHVWDWXVRIVXERUGLQDWH72&HTXLSPHQW
‡ %DFNXSLQFDVHRIQHWZRUNRUV\VWHPGHJUDGDWLRQRUIDLOXUH
‡ &UHDWHPDQDJHDQGGLVVHPLQDWH)%&%SDVVZRUGV
‡ 7DNHLPPHGLDWHFRUUHFWLYHVWHSVZKHQQHWZRUNVHUYHUV\VWHPIDLOXUHRFFXU
‡ 2SHUDWRUVVKRXOGVHWXSGLVWULEXWLRQOLVW V IRUIUHTXHQWO\XVHGDGGUHVVHV
‡ 2SHUDWRUVVKRXOGSRVWEDFNXSFRSLHVRISURGXFWVWR0&6ZHESDJH
‡ (QVXUH7$&623VSHFLILHVSURFHGXUHVIRUPDQDJLQJDQGVKDULQJ&LQIRUPDWLRQ
DQGSURGXFWV
‡ &KHFNRQZKDWGDWDEDVHWKHVWDIIXVHGWRFUHDWHWKHSODQ
‡ 7KHVWDIIVKRXOGWUDFNFRRUGLQDWLRQLQWHJUDWLRQVWDWXVRI&SURGXFWV
‡ (QVXUH7$&623VSHFLILHVSURFHGXUHVIRULQLWLDWLQJPRQLWRULQJDQGPDLQWDLQLQJ
WKH72&QHWZRUN
‡ 7KH0LVVLRQ'DWD/RDGHU 0'/ VKRXOGEHXVHGWRWUDQVIHUODUJHILOHVRI
SURGXFWV872DQGPDSVHWV
‡ 7KH6 VKRXOGFRRUGLQDWHZLWKWKH6IRUDFFHVVWR0'/ FODVVLILHG6HFUHW 
‡ $VN6 KRZQHWZRUNDQGVXERUGLQDWH72&HTXLSPHQWLVPRQLWRUHG
‡ $VNKRZWKH6 PRQLWRUV%OXH)RUFH7UDFNLQJDQG)%&%XQLWV
‡ &KHFNWKDWWKH6XVHVWKH&200&KHFNIHDWXUHRIWKH6LJQDORSWLRQWRYHULI\
FRQQHFWLYLW\WRRWKHUZRUNVWDWLRQV
‡ ,Q/RFDO72&YLHZFKHFNZKDWFRORUVDUHSRUWUD\HG
‡ ,VPRUHWKDQRQHQHDUWHUPGLJLWDOUDGLR 17'5 RSHUDWLQJLQ72&"
‡ (QVXUHWKH6 VHWVXSTXHULHV WRTXLFNO\PRQLWRUORZHUDQGXSSHUWDFWLFDO
LQWHOOLJHQFH 7,  HJ(3/5617'5)%&%VDQG6$VHUYHUV 

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

7DVN±0DQDJH'LJLWDO,QIRUPDWLRQ FRQW 
:DUILJKWLQJ)XQFWLRQ6XVWDLQPHQW

68%7$6.6 67$))773DQG&216,'(5$7,216

(QKDQFHORJLVWLFVSODQQLQJ 7KHIROORZLQJLVEDVHGRQWKH%1KDYLQJD%&6V\VWHPDYDLODEOH
H[HFXWLRQDQGGHFLVLRQ ‡ 8VH%&6WRWUDFNPDQDJH&RPPDQGHU¶V7UDFNHG,WHPV/LVW &7,/ 
PDNLQJ ‡ :KHQXQLWWDVNUHRUJDQL]DWLRQ 875 PRYHVDXQLWUHPHPEHU&66GDWDJRHV
ZLWKXQLW 872GRHVQRWJREHORZFRPSDQ\OHYHOLQ%&6 
‡ 8WLOL]H&RPEDW3RZHUUHSRUWVIRU&ODVV,,,%XON99,,DQGSHUVRQQHOWR
SURYLGH&RPPDQGHU¶VTXLFNORRNRIFRPSOHWHZHDSRQVV\VWHP
‡ 8VH3HHO%DFNSURFHVV %&6 IRULQGHSWKUHDGLQHVVLQIRUPDWLRQRQFODVV9,,
UHSRUWV
‡ 8WLOL]H)XWXUH&RPEDW3RZHUWRSUHGLFWFRPEDWSRVWXUHLQKULQFUHPHQWVXS
WRKUV %&6
‡ 8VH:DU*DPH&2$VLPXODWLRQWRROWRHQKDQFHGHFLVLRQPDNLQJ %&6
‡ &UHDWHD6WRFNDJH $OHUWWRPRQLWRUFULWLFDOORJLVWLFVIRUFXUUHQWRUIXWXUHPLVVLRQ
QHHGV %&6
‡ &UHDWH0DUFK&UHGLW2UGHUWREXLOGFRQYR\PRYHPHQWSODQVDQGGHFRQIOLFW
PXOWLSOHFRQYR\V %6&
‡ 5HPLQG)%&%XVHUVWKDW%&6VHUYHURQO\UHFRJQL]HV)%&%/RJLVWLFV6WDWXV
/2*67$7 DQG3HUVRQQHO6WDWXV 3(567$7 UHSRUWVIURP&RPSDQ\
&RPPDQGHU;26*DQG&3
‡ 8VH%&6:HE&OLHQWWRDFFHVVFULWLFDOORJLVWLFVLQIRUPDWLRQLI\RXGRQ¶WKDYHD
%&6V\VWHP
‡ 7UDFNFDUJRDQGFRPPXQLFDWHZLWKGULYHUVRIWUXFNVLQFRQYR\¶VXWLOL]LQJ%&6
DQG0RYHPHQW7UDFNLQJ6\VWHP 076 
‡ &UHDWHD3UR[LPLW\$OHUWWRQRWLI\XVHUZKHQGHVLJQDWHGSODWIRUPVRUHQWLWLHV
GHYLDWHIURPSODQQHGURXWHRUWLPHGVHTXHQFHRIHYHQWV %&6
‡ 8VH,Q7UDQVLW9LVLELOLW\ ,79 GDWDIHHGVWRWUDFNFRQYR\VUHSODFHPHQWSDUWVDLU
JURXQGDQGVHDDVVHWVDLUDQGVKLSPDQLIHVWVDQGORFDWHFODVVHV RIVXSSO\,,,9
9,,DQG,; %&6
‡ 'RHV7$&623VSHFLI\SURFHGXUHVIRUPDQDJLQJGLJLWDO&66LQIRUPDWLRQ
‡ (QVXUH7$&623FRQWDLQVSURFHGXUHVIRUWKHDVVXPSWLRQRI&E\WKH&7&3
‡ .QRZKRZWKH6WUDFN&7,/
‡ 7KH&7&3VKRXOGEHUHFHLYLQJ)%&%VXSSO\VWDWXVUHSRUWVIURPVXERUGLQDWHV
‡ &KHFNKRZ&7&3SHUVRQQHOV\QFKURQL]H&66DFWLYLWLHVZLWKPDQHXYHUDQG
PDQHXYHUVXSSRUWSODQV
‡ &KHFNKRZVXSSO\PDLQWHQDQFHSHUVRQQHODQGFDVXDOW\HYDFXDWLRQUHTXLUHPHQWV
DUHFRRUGLQDWHGDQGLQWHJUDWHG
‡ 7KH6PXVWWUDFNFODVVHVRIVXSSO\DQGUHSRUWWR++4
‡ 7KH6PXVWWUDFNSHUVRQQHODQGUHTXHVWUHSODFHPHQWV
‡ 2SHUDWRUVPXVWUHDOL]HWKDWWUDFNLQJDOOFODVVHVRIVXSSO\UHTXLUHVDXQLW
LGHQWLILFDWLRQFRGH 8,& LQ%&6
‡ 7KH&7&3PXVWSURMHFWIXWXUHFRPEDWSRZHU
‡ (QVXUHWKH7$&623GHVLJQDWHVZKRLVWREHWKH%&6VHUYHU
‡ 2SHUDWRUVVKRXOGFUHDWHDQGXVHGLVWULEXWLRQOLVW V 
‡ 2SHUDWRUVVKRXOGSRVWEDFNXSFRSLHVRI&7&3SURGXFWVWRWKH0&6ZHESDJH
‡ 8VHUVFRQQHFWHGWR%&6VHUYHUVKRXOGVKDUHWKHVDPHILOWHUVDQG 2SHUDWLRQDO
9LHZV









%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

7DVN±$FKLHYH6LWXDWLRQDO8QGHUVWDQGLQJ
:))0RYHPHQWDQG0DQHXYHU

68%7$6.6 67$))773DQG&216,'(5$7,216

0D[LPL]HSURWHFWLRQRI ‡ (QVXUHFXUUHQW2EVWDFOH2YHUOD\LVSRVWHGLQ72&
PDQHXYHUHOHPHQWV ‡ &ORVHO\PRQLWRU5HFRQQDLVVDQFHDVVHWVDQGXSGDWH1R)LUH$UHDV
5HVWULFWHG)LUH$UHDV 1)$V 5)$V XVLQJ0&6
‡ (QVXUHGLVPRXQWVDQGVWDWLFHOHPHQWVZLWKRXW)%&%KDYHPDQXDOO\
JHQHUDWHGLFRQV
‡ ,VVXH)01HWFDOOWRDOOHOHPHQWVZKHQJDSVLQ%OXHIRUFHSLFWXUH
EHFRPHDSSDUHQW
‡ 0RQLWRUORFDWLRQVRIDGMDFHQWDQGVXUURXQGLQJXQLWVXSGDWH&23
‡ %DWWOH&DSWDLQ1&2VKRXOGHQVXUHXSGDWHGGDWDDIIHFWLQJWKHIULHQGO\
SLFWXUH 2EVWDFOH2YHUOD\1)$V 5)$V1RQUHSRUWLQJ)ULHQGO\)RUFHV
2YHUOD\HWF 
‡ .QRZKRZWKH%DWWOH&DSWDLQ1&2WUDFNDQDORJXQLWV
‡ (QVXUHWKH7$&623H[SODLQVKRZXVLQJWKH&ROODSVH([SDQGIXQFWLRQ
LQ)%&%FRXOGDIIHFWWKHIULHQGO\SLFWXUH
‡ (QVXUHWKH72&&23GLVSOD\ODWHVW2EVWDFOH2YHUOD\PDQXDOLFRQV



7DVN±$FKLHYH6LWXDWLRQDO8QGHUVWDQGLQJ
:)),QWHOOLJHQFH

68%7$6.6 67$))773DQG&216,'(5$7,216

(QVXUH7DVN)RUFHNQRZV ‡ ,QWHJUDWHDOOVRXUFHGDWDWRNHHSFRUUHODWHG5HGIRUFHSLFWXUHFXUUHQW
ZKHUHIULHQGO\)RUFHVDUHLQ ‡ &ORVHO\PRQLWRUUHFRQQDLVVDQFHDVVHWVDQGUHTXHVWDGMXVWPHQWVWR PDQXDO
UHODWLRQWRHQHP\IRUFHV LFRQVDQG
1)$V 5)$VDVQHHGHG
‡ $VN6ZKHUHUHFRQQDLVVDQFHDVVHWVDUHORFDWHGDQGGHWHUPLQHLI1)$
5)$LVFRYHULQJWKHLUORFDWLRQ
‡ (QVXUHWKH&23GLVSOD\VPDQXDOLFRQVDQG1)$V 5)$V IRUUHFRQQDLVVDQFH
DVVHWV












%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

7DVN±$FKLHYH6LWXDWLRQDO8QGHUVWDQGLQJ FRQW 
:)))LUH6XSSRUW

68%7$6.6 67$))773DQG&216,'(5$7,216

3URYLGHIULHQGO\IRUFHZLWK ‡ 0DQXDOO\HQWHU766LQWR$)$7'6
PD[LPXPILUHVXSSRUW ‡ 8SGDWHUDQJHDQGUDGDUIDQVDVXQLWVPRYH $)$7'6
FRYHUDJHZLWKRXWHQGDQJHULQJ ‡ 8WLOL]H1R6WULNH/LVWLQWKH(07
IULHQGO\IRUFHV ‡ 8VH&KHFN)LUHIXQFWLRQLQ(07IRU5)$DQG1)$
‡ (QVXUHWKH7$&623DGGUHVVHVGLJLWDODVSHFWVRIFOHDULQJILUHV
‡ &KHFNWKDWWKH)6(GHWHUPLQHV766LQFROODERUDWLRQZLWK6
‡ (QVXUHWKH)6(FRRUGLQDWHVZLWK66WRREWDLQLQSXWWRWKH1R6WULNH
/LVW
‡ (QVXUHWKH72&&23GLVSOD\ODWHVW)6&0V

7DVN±$FKLHYH6LWXDWLRQDO8QGHUVWDQGLQJ FRQW 
:))3URWHFWLRQ

68%7$6.6 67$))773DQG&216,'(5$7,216

0DLQWDLQIULHQGO\IRUFH ‡ 8SGDWHREVWDFOHRYHUOD\GLVVHPLQDWHWR6DQGVXERUGLQDWHXQLWV
DZDUHQHVVRIEDWWOH 0&6 
VSDFH ‡ $OHUWVXERUGLQDWHHOHPHQWVZKHQREVWDFOHRYHUOD\LVXSGDWHG
‡ 0RQLWRUIULHQGO\IRUFHOLYHIHHGWRHQVXUHFXUUHQW6$RIIULHQGO\IRUFHV
&UHDWHVDIHDFFHVV ‡ 0RQLWRUIULHQGO\DLUVSDFHFRUULGRU V 
WRDLUVSDFHFRUULGRUVIRU ‡ 2EWDLQ$'$52(
IULHQGO\DLUFUDIW ‡ 0RQLWRUIULHQGO\DLUDOHUWJURXQGIRUFHVDVQHHGHG
‡ (QVXUHWKH7$&623DGGUHVVHVWKHGLJLWDODVSHFWVRIFOHDULQJILUHV
‡ 7KH2EVWDFOH2YHUOD\PXVWEHVHQWWRVXERUGLQDWHXQLWVZLWKD
PDQGDWRU\RSHUDWRUUHVSRQVH
‡ (QVXUHWKH72&&23GLVSOD\ODWHVW2EVWDFOH2YHUOD\
‡ (QVXUHWKH7$&623VSHFLILHVGLJLWDOIUDWULFLGHSUHYHQWLRQSURFHGXUHVIRU
$'$(/0
‡ (QVXUHDLUVSDFHFRUULGRUVDQGZHDSRQVVWDWXVDUHXSGDWHGDQG
GLVVHPLQDWHG
‡ (QVXUH$'ZDUQLQJV 5HG<HOORZ:KLWH EHLQJXVHG
‡ (QVXUHWKH72&GLVSOD\VXSWRGDWHDLUFRUULGRUV





%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

7DVN±$FKLHYH6LWXDWLRQDO8QGHUVWDQGLQJ FRQW 
:))&RPPDQGDQG&RQWURO

68%7$6.6 67$))773DQG&216,'(5$7,216

0RQLWRUDQGGLUHFWIULHQGO\ ‡ &RQWLQXRXVO\PRQLWRUDQGUHGLUHFWIULHQGO\IRUFHVDVQHHGHG
IRUFHVWRDYRLGIUDWULFLGH ‡ 8SGDWHRYHUOD\VDQGGLVVHPLQDWH
‡ 0RQLWRUPDLQWDLQVHUYHUVURXWHUVDQGGHYLFHVRQWKHQHWZRUNWR
SUHYHQWV\VWHPLQGXFHGJDSV
‡ &RRUGLQDWHZLWK6 6IRUUHWUDQVPLVVLRQVLWHVXSGDWHORFDWLRQVRQ
VLJQDODQGRSHUDWLRQVRYHUOD\
‡ .QRZKRZWKH6 PRQLWRUVWKH%OXHIRUFHSLFWXUH
‡ 'HWHUPLQHKRZJDSVDUHGHWHFWHGLQWKHIULHQGO\SLFWXUH
‡ (QVXUHUHWUDQVPLVVLRQORFDWLRQVDSSHDULQVLJQDODQGRSHUDWLRQVRYHUOD\
‡ 'HWHUPLQHDWZKDWLQWHUYDOWKH%DWWOH&DSWDLQ1&2GLVVHPLQDWHV
XSGDWHV
‡ (QVXUHWKH7$&623GHVLJQDWHVZKRPRQLWRUVWKH%OXHIRUFHOLYH
IHHG


7DVN±$FKLHYH6LWXDWLRQDO8QGHUVWDQGLQJ FRQW 
:))6XVWDLQPHQW

68%7$6.6 67$))773DQG&216,'(5$7,216
2SWLPL]HSURWHFWLRQ ‡ (QVXUHFRQYR\VKDYHDWOHDVWWZR)%&%RUIULHQGO\IRUFHWUDFNLQJ
RIUHVXSSO\FRQYR\V HTXLSSHGYHKLFOHV
‡ 3URYLGHFXUUHQW6$RIFRQYR\VDQGQHDUE\%OXHIRUFHVERWKJURXQG
DQGDLU 0&6
‡ $OHUWIULHQGO\IRUFHVDVQHHGHG
‡ (QVXUHWKH7$&623UHTXLUHVHYHU\FRQYR\WRKDYHDWOHDVWWZRORJLVWLFV
WUDQVSRUWYHKLFOHVHTXLSSHGZLWK)%&%RUIULHQGO\IRUFHWUDFNLQJ
‡ (QVXUHWKH&7&3GLVSOD\VDQGPRQLWRUVWKHIULHQGO\IRUFH










%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

# 

 


A



*HQHUDO

6WDIIRIILFHUVDWWKH%1OHYHODUHUHTXLUHGWRGHPRQVWUDWHDZLGHUDQJHRI
FRPSHWHQFLHVDVLGHIURPWDFWLFDOVNLOOV0DQ\RIWKHVHFRPSHWHQFLHVDUH
URXWLQHRUDGPLQLVWUDWLYHLQQDWXUH7KLVVHFWLRQSURYLGHVDJXLGHZLWK
UHIHUHQFHVDQGVRPHWLSVIRUSHUIRUPLQJPDQ\RIWKHVHVNLOOV

6HFWLRQ±6WDII&RRUGLQDWLRQDQG&RPPXQLFDWLRQV

$%$&'(

)LHOG0DQXDO )0 0LVVLRQ&RPPDQG&RPPDQGDQG&RQWURORI
$UP\)RUFHVGHILQHVFRRUGLQDWLRQDVWKHDFWLRQQHFHVVDU\WRHQVXUH
DGHTXDWHO\LQWHJUDWHGUHODWLRQVKLSVEHWZHHQVHSDUDWHRUJDQL]DWLRQVORFDWHG
LQWKHVDPHDUHD&RRUGLQDWLRQPD\LQFOXGHVXFKPDWWHUVDVILUHVXSSRUW
HPHUJHQF\GHIHQVHPHDVXUHVDUHDLQWHOOLJHQFHDQGRWKHUVLWXDWLRQVLQ
ZKLFKFRRUGLQDWLRQLVFRQVLGHUHGQHFHVVDU\ $UP\0DULQH&RUSV 
&RRUGLQDWLRQWDNHVSODFHFRQWLQXRXVO\WKURXJKRXWRSHUDWLRQV

&RPPDQGVZLOOQRWEHDEOHWRRSHUDWHVXFFHVVIXOO\LQLVRODWLRQWKH\PXVW
V\QFKURQL]HWKHLUDFWLRQVZLWKWKRVHRIRWKHUV&RRUGLQDWLRQLVHVVHQWLDOWR
WKLVV\QFKURQL]DWLRQ,WKDVIRXUREMHFWLYHV
ƒ (QVXUHDWKRURXJKXQGHUVWDQGLQJRIWKH&RPPDQGHU¶V,QWHQWDVZHOODV
VXERUGLQDWHV¶DQGVXSSRUWLQJIRUFHV¶UROHV
ƒ (QVXUHDOODIIHFWHGDQGLQWHUHVWHGSHUVRQQHOKDYHEHHQFRQVXOWHGRU
LQIRUPHGDVWLPHDOORZVVRWKH\PD\UHVSRQGDVGHVLUHGRUDGMXVW
WKHLUSODQVDQGDFWLRQV
ƒ $YRLGFRQIOLFWDQGGXSOLFDWLRQRIHIIRUWDPRQJXQLWVUHGXFLQJ
IUDWULFLGHDQGH[SHQGLQJUHVRXUFHV
ƒ (QVXUHFRPPDQGHUVDQGVWDIIVFRQVLGHUDVPDQ\UHOHYDQWIDFWRUVDV
WLPHSHUPLWVDQGHIIHFWLYHO\HPSOR\DOODYDLODEOHDVVHWV

/RFDWLRQVWLPHVDQGIXQFWLRQVPD\DOOUHTXLUHFRRUGLQDWLRQ&RRUGLQDWLQJ
EHJLQVGXULQJSODQQLQJ+RZHYHUDSODQDORQHGRHVQRWJXDUDQWHHFRRUGL
QDWLRQ([FKDQJLQJLQIRUPDWLRQLVFULWLFDOWRVXFFHVVIXOFRRUGLQDWLRQ
'XULQJSUHSDUDWLRQFRPPDQGVFRRUGLQDWHZLWKKLJKHUORZHUDGMDFHQW
VXSSRUWLQJDQGVXSSRUWHGXQLWV
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
   

773Ź &RRUGLQDWLRQLQFOXGHVWKHIROORZLQJ
ƒ 6HQGLQJDQGUHFHLYLQJOLDLVRQWHDPVDVQHFHVVDU\
ƒ (VWDEOLVKLQJFRPPXQLFDWLRQVOLQNVWKDWDVVXUHFRQWLQXRXV
FRQWDFWGXULQJH[HFXWLRQ
ƒ ([FKDQJLQJ623VDVQHHGHG
ƒ 6\QFKURQL]LQJVHFXULW\DQGUHFRQQDLVVDQFHSODQVWR
SUHYHQWEUHDNVLQFRYHUDJH

7KHFRRUGLQDWLQJVWDIIVHUYHVDVWKH&RPPDQGHUV¶SULQFLSDOVWDIIDVVLVWDQWV
:KLOHFRPPDQGHUV¶PD\WDLORUWKHLUVWDIIIRUVSHFLILFQHHGVDW\SLFDOVWDII
VWUXFWXUHLVGHSLFWHGLQWKHFKDUWEHORZ 6RXUFH)0 

%16WDII6WUXFWXUH

3HUVRQDO6WDII*URXS
&RPPDQGHU

&RPPDQG
([HFXWLYH 6HUJHDQW &KDSODLQ
2IILFHU 0DMRU

&RRUGLQDWLQJ6WDII*URXS

3HUVRQQHO ,QWHOOLJHQFH 2SHUDWLRQV  /RJLVWLFV 3ODQV &2SHUDWLRQV


2IILFHU 2IILFHU 7UDLQLQJ2IILFHU 2IILFHU 2IILFHU 2IILFHU
6 6 6 6 6 6
1RWH 1RWH 1RWH

,QIRUPDWLRQ &LYLO0LOLWDU\
6XSSRUW
2SHUDWLRQV 2SHUDWLRQV
2SHUDWLRQV 2IILFHU
2IILFHU 2IILFHU
6 6
1RWH 1RWH 1RWHV 

6SHFLDO6WDII*URXS

&+(02 6XUJHRQ 1RWH

/*$.B
 ,Q&66XQLWVWKHIXQFWLRQVRIWKH6DQG6DUHXVXDOO\FRPELQHG
 ,QXQLWVZKHUHWKH72(RU7'$GRHVQRWDXWKRUL]HDQ6WKH&RPPDQGHUJLYHVDQRIILFHU XVXDOO\WKH6 WKHUHVSRQVLELOLW\
IRUFLYLOPLOLWDU\RSHUDWLRQV &02 
 )RUEDWWDOLRQVDQGEULJDGHVQRWDXWKRUL]HGDVSHFLILFVSHFLDOVWDIIRIILFHUWKH&RPPDQGHUDSSRLQWVDQRIILFHUWRSHUIRUPWKH
IXQFWLRQDVDQDGGLWLRQDOGXW\LIUHTXLUHG7KHFRPPDQGPD\IRUPRWKHUVWDIIJURXSVZKHQ'$RU$6&&DXWKRUL]HV
 ,QVXSSRUWEDWWDOLRQVDVXSSRUWRSHUDWLRQVRIILFHULVDGGHGWRWKHFRRUGLQDWLQJVWDII
 )0,KDVGHVLJQDWHGWKLVFRRUGLQDWLQJVWDIIRIILFHUDOWKRXJKQRW DOOXQLWVZLOOKDYHRQHDVVLJQHG



&RRUGLQDWLQJVWDIIRIILFHUVDUHUHVSRQVLEOHIRUFROOHFWLQJLQIRUPDWLRQDQG
DQDO\]LQJLWVLPSOLFDWLRQVDQGLPSDFWRQWKH%10RUHLPSRUWDQW
FRRUGLQDWLQJVWDIIRIILFHUVSURYLGHWLPHO\DQGDFFXUDWHUHFRPPHQGDWLRQVWR
WKH&RPPDQGHUWRKHOSKLPPDNHWKHEHVWSRVVLEOHGHFLVLRQV7KHUDQJH

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 ! 
RIUHVSRQVLELOLWLHVLVXVXDOO\RXWOLQHGLQWKH%17$&6236WDII
FRRUGLQDWLRQUHTXLUHPHQWVIDOOLQWRWZRFDWHJRULHVLQWHUQDODQGH[WHUQDO

773Ź 5HPHPEHU6WDIIDFWLRQVUHTXLUHFRRUGLQDWLRQWKDWH[WHQGV
EH\RQGWKHLPPHGLDWHFRPPDQGWRKLJKHUVXERUGLQDWH
VXSSRUWHGDQGDGMDFHQWFRPPDQGV

//&-4%'*4/%

,QWHUQDOFRRUGLQDWLRQRFFXUVZLWKLQ+4,WVWDUWVDFWLYLWLHVZLWKLQDQG
DPRQJVWDIIVHFWLRQV,WHQVXUHVVWDIIPHPEHUVUHPDLQIXOO\LQIRUPHGRI
UHTXHVWHGLQIRUPDWLRQDIIHFWLQJWKHLUIXQFWLRQDOUHVSRQVLELOLWLHV'XULQJ
SUHSDUDWLRQLQWHUQDOFRRUGLQDWLRQHQVXUHVWKDWVWDIIVUHILQHSODQVEDVHGRQ
XSGDWHGLQIRUPDWLRQ7KLVDOVRKHOSVUHVROYHSUREOHPVZLWKH[WHUQDO
FRRUGLQDWLRQ,QWHUQDOFRRUGLQDWLRQDOVRVXSSRUWVVXERUGLQDWHXQLWV¶
SUHSDUDWLRQVE\UHVROYLQJSUREOHPVFRQIOLFWVDQGUHVRXUFHDOORFDWLRQV
6RXUFH)0 ,QWHUQDOFRRUGLQDWLRQLQYROYHVWKHIRXUREMHFWLYHV
SUHYLRXVO\PHQWLRQHGEXWIRFXVHVRQDFWLRQVRUHYHQWVWKDWDIIHFWWKH%1

773Ź &RQVLGHUWKHIROORZLQJ
ƒ 6HFWLRQPHPEHUVXQGHUVWDQGWKHGHVLUHGHQGVWDWH
ƒ 5HVRXUFHVDUHDYDLODEOHWRDFFRPSOLVKWKHWDVN
ƒ 6XERUGLQDWHVUHFHLYHDPSOHWLPHHJWKH±
SODQQLQJUXOH
ƒ 5HJXODUO\FRQGXFWFKHFNVRQSURJUHVVVRSUREOHPVDUH
DGGUHVVHGHDUO\LQWKHSODQQLQJF\FOHDQGGRQRWJURZLQWR
³ZDUVWRSSHUV¶
ƒ 'HOHJDWHVHFWLRQPHPEHUV LIDYDLODEOH ZKRFDQDVVLVW
ƒ .QRZOHGJHLV127SRZHUVKDUHWKHORDGZKHUH
DSSURSULDWH
ƒ 6RPHWKLQJVFDQEHDFFRPSOLVKHGZLWKRXWLQYROYLQJWKH
&RPPDQGHU,IFRQIXVLRQH[LVWV$6.

([WHUQDOFRRUGLQDWLRQLQFOXGHVFRRUGLQDWLQJZLWKVXERUGLQDWHXQLWV
DGMDFHQWXQLWV++4DQGVXSSRUWHGDQGVXSSRUWLQJXQLWVIRUUHVRXUFHVRU
IRUFHVWKDWPD\QRWEHLPPHGLDWHO\XQGHUWKHFRPPDQG¶VFRQWUROGXULQJ
SODQQLQJ 6RXUFH)0 

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  " 

773Ź 3ODFHVZKHUHWZR+4PXVWFRRUGLQDWHWKHLUDFWLRQVDUH
SRWHQWLDOZHDNSRLQWV(QHPLHVPD\H[SORLWWKHPRU
&RPPDQGHUVPD\FRPPLWWRRPDQ\RUWRRIHZUHVRXUFHVWKHUH
7KHVHSRLQWVLQFOXGHXQLWERXQGDULHVZKHUHXQLW
LQWHUGHSHQGHQFHPD\GHOD\H[HFXWLRQ

7KH++4PDNHVSURYLVLRQVIRUFRRUGLQDWLRQEHWZHHQVXERUGLQDWHXQLWV
DVVLJQHGQRQFRQWLJXRXV$2VDQGWKRVHRSHUDWLQJLQWKHVSDFHEHWZHHQ
WKRVH$2V7KH%1ZLOOQHHGWRFRRUGLQDWHZLWKXQLWVORFDWHGLQWKHLU$2V
UHJDUGOHVVRIZKHWKHUWKH\DUHDGMDFHQW

773Ź %HRQWKHORRNRXWIRUFRRUGLQDWLRQZLWKIRUFHVWKDWPD\QRWEH
FRQWLJXRXVWRWKH%1¶V$26XFKDVLWXDWLRQUHTXLUHVVSHFLDO
HIIRUWVVLQFHWKH+4WKDWDVVLJQHGXQLWVWRQRQFRQWLJXRXV$2V
UHWDLQVUHVSRQVLELOLW\IRUFRQWUROOLQJWKHDUHDEHWZHHQWKHP

([WHUQDOFRRUGLQDWLRQLVVLPLODUWRWKRVHWKLQJVFRQGXFWHGIRULQWHUQDO
FRRUGLQDWLRQEXWIRFXVHVEH\RQGWKHLPPHGLDWHFRPPDQGWRKLJKHU
VXERUGLQDWHVXSSRUWLQJVXSSRUWHGDQGDGMDFHQWFRPPDQGV

773Ź *UDSKLFFRQWUROPHDVXUHV *&0 DUHDPRQJWKHPRVWEDVLF
PHDQVRIFRRUGLQDWLRQ 6HH)0)0 7KH
³&RRUGLQDWLQJ,QVWUXFWLRQV´VXESDUDJUDSKRI23/$1VDQG
2325'VOLVWVFRQWUROPHDVXUHVLQZULWWHQIRUP 6HH)0 
,QJUDSKLFDQGZULWWHQIRUPV*&0VKHOSFRPPDQGHUV
FRRUGLQDWHIRUFHV¶DFWLRQVJHRJUDSKLFDOO\IXQFWLRQDOO\RU
FKURQRORJLFDOO\DVZHOODVFRQWUROLQGLYLGXDOVXERUGLQDWHV¶
DFWLRQV:ULWWHQ*&0VDUHWKHPRVWOLNHO\VRXUFHIRU
FKURQRORJLFDOFRRUGLQDWLRQDOWKRXJKVRPH*&0VFRQWDLQ
FKURQRORJLFDOUHVWULFWLRQV

*'22 /336%48'*4/%.

:KLOHVWDIIRIILFHUV ZLWKWKHH[FHSWLRQRIFRXUVHRIWKH6 DUHQRW
H[SHFWHGWREHFRPPXQLFDWLRQVH[SHUWVWKH\DUHUHTXLUHGWREHFRPSHWHQW
FRPPXQLFDWRUVZKRXQGHUVWDQGWKHFDSDELOLWLHVDQGOLPLWDWLRQVRIWKH
DYDLODEOHFRPPXQLFDWLRQVV\VWHPV7KHVHV\VWHPVLQFOXGHEXWDUHQRW
OLPLWHGWR
ƒ &RPSXWHUVHVSHFLDOO\ZRUGSURFHVVLQJJUDSKLFVDQGHPDLO
ƒ $%&6V\VWHPV

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
   
ƒ 3RVWDODQGPHVVHQJHUVHUYLFHV
ƒ (OHFWURQLFPHVVDJLQJ
ƒ 7HOHSKRQHVFLYLOLDQDQGPLOLWDU\WRLQFOXGHYRLFHPDLOIHDWXUHV
ƒ )D[
ƒ 5DGLR
7KH6UROHLQVWDIIFRPPXQLFDWLRQVKDVEHHQFRYHUHGLQPRUHGHSWK
SUHYLRXVO\LQ3DUWVDQGRIWKLVYROXPH

6HFWLRQ±%ULHILQJVDQG6SHDNLQJ

$%$&'(

0LOLWDU\EULHILQJVDUHDGGUHVVHGLQ)0$UP\3ODQQLQJDQG2UGHUV
3URGXFWLRQ%ULHILQJVDUHDPHDQVRISUHVHQWLQJLQIRUPDWLRQWR
FRPPDQGHUVVWDIIVRURWKHUDXGLHQFHV7KHSXUSRVHRIWKHEULHILQJWKH
GHVLUHGUHVSRQVHDQGWKHUROHRIWKHEULHIHUGHWHUPLQHWKHWHFKQLTXHV
HPSOR\HG

&4$24%+$8)%4C6$.

(IIHFWLYHEULHILQJVUHTXLUHGVLPLODUVNLOOVQHFHVVDU\IRUDQRUDO
SUHVHQWDWLRQ7KHPDLQGLIIHUHQFHLVWKDWEULHILQJVRIWHQXVHGYLVXDODLGV
VOLGHVFKDUWVYLHZJUDSKWUDQVSDUHQFLHVPPVOLGHVPDSV
SKRWRJUDSKVVDPSOHLWHPVILOPFOLSVHWF 0RVWJRRGEULHIHUVOHWWKH
YLVXDODLGVWHOOWKHVWRU\EXWRQO\LIWKH\DUH
ƒ (IIHFWLYH
ƒ 9LVLEOH
ƒ 0HDQLQJIXO
ƒ 8QFOXWWHUHGDQGFOHDU
ƒ /HJLEOH
ƒ 5HODWHWRWKHDXGLHQFH
7KHTXDOLW\RIYLVXDODLGVFDQPDNHRUEUHDNDEULHILQJ$QGEULHILQJVPXVW
EHUHKHDUVHGSUHIHUDEO\XQWLOWKH\DUHSHUIHFW

773Ź 'RQRWUHDGVOLGHVWRWKHDXGLHQFH0RYHRQZKHQWKHVHQLRU
PHPEHUEULHIHGKDVLQGLFDWHGKHLVUHDG\ QRGZRUGORRN
HWF 

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
   

773Ź *RRGEULHIHUVDUHQHYHUFDXJKWZLWKRXWDSRLQWHURIVRPH
W\SH/RWVRISRLQWLQJFDQRIWHQEHKDQGOHGE\DQDVVLVWDQW

,7$./2&4$24%+.

7KHIROORZLQJSURYLGHVDQH[SODQDWLRQDQGIRUPDWIRUHDFKRIWKHIRXU
PDMRUW\SHVRIPLOLWDU\EULHILQJV
ƒ ,QIRUPDWLRQEULHILQJ
ƒ 'HFLVLRQEULHILQJ
ƒ 0LVVLRQEULHILQJ
ƒ 6WDIIEULHILQJ

,QIRUPDWLRQ%ULHILQJ

$QLQIRUPDWLRQEULHILQJSURYLGHVLQIRUPDWLRQLQDIRUPWKHDXGLHQFHFDQ
XQGHUVWDQG,WGRHVQRWLQFOXGHFRQFOXVLRQVRUUHFRPPHQGDWLRQV1R
GHFLVLRQVUHVXOW,QIRUPDWLRQEULHILQJVGHDOSULPDULO\ZLWKIDFWV

7KHEULHIHUEHJLQVDQLQIRUPDWLRQEULHILQJE\DGGUHVVLQJWKHDXGLHQFH
LGHQWLI\LQJWKHPVHOYHVDQGWKHRUJDQL]DWLRQDQGJLYHVWKHFODVVLILFDWLRQRI
WKHEULHILQJ7KHEULHIHUVWDWHVWKDWWKHSXUSRVHRIWKHEULHILQJLVIRU
LQIRUPDWLRQDQGQRGHFLVLRQLVUHTXLUHG7KHEULHIHUWKHQLQWURGXFHVDQG
GHILQHVWKHVXEMHFWRULHQWVWKHDXGLHQFHDQGSUHVHQWVWKHLQIRUPDWLRQ
([DPSOHVRILQIRUPDWLRQDSSURSULDWHIRUDQLQIRUPDWLRQEULHILQJDUH
ƒ +LJKSULRULW\LQIRUPDWLRQUHTXLULQJLPPHGLDWHDWWHQWLRQ
ƒ &RPSOH[LQIRUPDWLRQ²VXFKDVFRPSOLFDWHGSODQVV\VWHPVVWDWLVWLFV
RUFKDUWV²WKDWUHTXLUHGHWDLOHGH[SODQDWLRQ
ƒ &RQWURYHUVLDOLQIRUPDWLRQUHTXLULQJHODERUDWLRQDQGH[SODQDWLRQ

,QIRUPDWLRQ%ULHILQJ)RUPDW

773Ź $OOVWDIIEULHILQJV JDUULVRQDQGILHOG PXVWEHGRQHLQDQ
HVWDEOLVKHGIRUPDW
%1&RPPDQGHU¶V+DQGERRN86$:&

,QWURGXFWLRQ
ƒ *UHHWLQJ$GGUHVVWKHDXGLHQFH,GHQWLI\\RXUVHOIDQG\RXU
RUJDQL]DWLRQ
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
   
ƒ 7\SHDQG&ODVVLILFDWLRQRI%ULHILQJ)RUH[DPSOH³7KLVLVDQ
LQIRUPDWLRQEULHILQJ,WLVFODVVLILHG6(&5(7´
ƒ 3XUSRVHDQG6FRSH'HVFULEHFRPSOH[VXEMHFWVIURPJHQHUDOWR
VSHFLILF
ƒ 2XWOLQHRU3URFHGXUH%ULHIO\VXPPDUL]HWKHNH\SRLQWVDQGJHQHUDO
DSSURDFK([SODLQDQ\VSHFLDOSURFHGXUHV VXFKDVGHPRQVWUDWLRQV
GLVSOD\VRUWRXUV )RUH[DPSOH³'XULQJP\EULHILQJ,¶OOGLVFXVVWKHVL[
SKDVHVRIRXUSODQ,¶OOUHIHUWRPDSVRIRXUDUHDRIRSHUDWLRQV7KHQP\
DVVLVWDQWZLOOEULQJRXWDVDQGWDEOHWRVKRZ\RXWKHH[SHFWHGIORZRIEDWWOH´
7KHNH\SRLQWVPD\EHSODFHGRQDFKDUWWKDWUHPDLQVYLVLEOHWKURXJKRXW
WKHEULHILQJ

0DLQ%RG\
ƒ $UUDQJHWKHPDLQLGHDVLQDORJLFDOVHTXHQFH
ƒ 8VHYLVXDODLGVWRHPSKDVL]HPDLQLGHDV
ƒ 3ODQHIIHFWLYHWUDQVLWLRQVIURPRQHPDLQSRLQWWRWKHQH[W
ƒ %HSUHSDUHGWRDQVZHUTXHVWLRQVDWDQ\WLPH

&ORVLQJ
ƒ $VNIRUTXHVWLRQV
ƒ %ULHIO\UHFDSPDLQLGHDVDQGPDNHDFRQFOXGLQJVWDWHPHQW
ƒ $QQRXQFHWKHQH[WVSHDNHU

'HFLVLRQ%ULHILQJ

$GHFLVLRQEULHILQJREWDLQVDQDQVZHUWRDTXHVWLRQRUDGHFLVLRQRQD
FRXUVHRIDFWLRQ,WSUHVHQWVWKHUHFRPPHQGHGVROXWLRQUHVXOWLQJIURP
DQDO\VLVRUVWXG\RIDSUREOHPRUSUREOHPDUHD'HFLVLRQEULHILQJVYDU\LQ
IRUPDOLW\DQGGHWDLOGHSHQGLQJRQWKHOHYHORIFRPPDQGDQGWKHGHFLVLRQ
PDNHUV¶NQRZOHGJHRIWKHVXEMHFW

,QVLWXDWLRQVZKHUHWKHGHFLVLRQPDNHULVIDPLOLDUZLWKWKHSUREOHPWKH
EULHILQJIRUPDWPD\UHVHPEOHWKDWRIDGHFLVLRQSDSHUDSUREOHP
VWDWHPHQWHVVHQWLDOEDFNJURXQGLQIRUPDWLRQLPSDFWVDQGDUHFRPPHQGHG
VROXWLRQ+RZHYHUEULHIHUVDUHSUHSDUHGWRSUHVHQWDVVXPSWLRQVIDFWV
DOWHUQDWLYHVROXWLRQVUHDVRQVIRUDGRSWLQJWKHUHFRPPHQGDWLRQDQGWKH
FRRUGLQDWLRQLQYROYHG
,IWKHGHFLVLRQPDNHULVXQIDPLOLDUZLWKWKHSUREOHPWKHEULHILQJIRUPDW
UHVHPEOHVWKDWRIDGHFLVLRQEULHILQJ7KHEULHILQJVKRXOGLQFOXGHIDFWV
EHDULQJRQWKHSUREOHPDVVXPSWLRQVDQGDGLVFXVVLRQRIDOWHUQDWLYHV
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
   
FRQFOXVLRQVDQGWKHFRRUGLQDWLRQLQYROYHG7KHEULHIHUEHJLQVE\
VWDWLQJ³7KLVLVDGHFLVLRQEULHILQJ´$WWKHFRQFOXVLRQLIWKHGHFLVLRQ
PDNHUGRHVQRWVWDWHDGHFLVLRQWKHEULHIHUDVNVIRURQH7KHEULHIHU
VKRXOGEHFHUWDLQWKDWKHXQGHUVWDQGVWKHGHFLVLRQ,IXQFHUWDLQWKHEULHIHU
DVNVIRUFODULILFDWLRQ7KHUHFRPPHQGDWLRQWKHEULHIHUDVNVWKHGHFLVLRQ
PDNHUWRDSSURYHVKRXOGEHSUHFLVHO\ZRUGHGLQDIRUPWKDWFDQEHXVHGDV
DGHFLVLRQVWDWHPHQW3UHVHQWLQJWKHUHFRPPHQGDWLRQWKLVZD\KHOSV
HOLPLQDWHDPELJXLWLHV,IWKHGHFLVLRQUHTXLUHVDQLPSOHPHQWLQJGRFXPHQWLW
VKRXOGEHSUHSDUHGEHIRUHWKHEULHILQJDQGJLYHQWRWKHGHFLVLRQPDNHUIRU
VLJQDWXUHLIWKHUHFRPPHQGDWLRQLVDSSURYHG

'HFLVLRQ%ULHILQJ)RUPDW

,QWURGXFWLRQ
ƒ *UHHWLQJ$GGUHVVWKHGHFLVLRQPDNHU,GHQWLI\\RXUVHOIDQG\RXU
RUJDQL]DWLRQ
ƒ 7\SHDQG&ODVVLILFDWLRQRI%ULHILQJ)RUH[DPSOH³7KL V LVDGHFLVLRQ
EULHILQJ,WLV81&/$66,),( '´ 
ƒ 3UREOHP6WDWHPHQW
ƒ 5HFRPPHQGDWLRQ

%RG\
ƒ )DFWV$QREMHFWLYHSUHVHQWDWLRQRIERWKSRVLWLYHDQGQHJDWLYHIDFWV
EHDULQJXSRQWKHSUREOHP
ƒ $VVXPSWLRQV1HFHVVDU\DVVXPSWLRQVPDGHWREULGJHDQ\JDSVLQ
IDFWXDOGDWD
ƒ 6ROXWLRQV$GLVFXVVLRQRIWKHYDULRXVRSWLRQVWKDWFDQVROYHWKH
SUREOHP
ƒ $QDO\VLV7KHFULWHULDE\ZKLFK\RXZLOOHYDOXDWHKRZWRVROYHWKH
SUREOHP VFUHHQLQJDQGHYDOXDWLRQ $GLVFXVVLRQRIHDFK&2$¶VUHODWLYH
DGYDQWDJHVDQGGLVDGYDQWDJHV
ƒ &RPSDULVRQ6KRZKRZWKHFRXUVHVRIDFWLRQUDWHDJDLQVWWKH
HYDOXDWLRQFULWHULD
ƒ &RQFOXVLRQ'HVFULEHZK\WKHVHOHFWHGVROXWLRQLVEHVW

&ORVLQJ
ƒ 4XHVWLRQV"
ƒ 5HVWDWHPHQWRIWKHUHFRPPHQGDWLRQ
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
   
ƒ 5HTXHVWDGHFLVLRQ

0LVVLRQ%ULHILQJ

7KHPLVVLRQEULHILQJLVDQLQIRUPDWLRQEULHILQJSUHVHQWHGXQGHUWDFWLFDORU
RSHUDWLRQDOFRQGLWLRQV7KHEULHIHUPD\EHWKH&RPPDQGHUDQDVVLVWDQWD
VWDIIRIILFHURUDVSHFLDOUHSUHVHQWDWLYH

7KHPLVVLRQEULHILQJLVXVHGGXULQJRSHUDWLRQVDQGWUDLQLQJDQGLV
HVSHFLDOO\DSSURSULDWHIRUFULWLFDOPLVVLRQVRUZKHQLWLVQHFHVVDU\WRJLYH
LQGLYLGXDOVRUVPDOOHUXQLWVLQIRUPDWLRQQRWLQWKHSODQRURUGHU7KHPLVVLRQ
EULHILQJFDQ
ƒ ,VVXHRUUHLQIRUFHDQRUGHU
ƒ 3URYLGHPRUHGHWDLOHGUHTXLUHPHQWVRULQVWUXFWLRQV
ƒ ,QVWLOODJHQHUDODSSUHFLDWLRQIRUWKHPLVVLRQ
ƒ 5HYLHZWKHNH\SRLQWVRIDIRUWKFRPLQJPLOLWDU\RSHUDWLRQ
ƒ (QVXUHSDUWLFLSDQWVNQRZWKHPLVVLRQ¶VREMHFWLYHWKHLUSODFHLQWKH
RSHUDWLRQSUREOHPVWKH\PD\FRQIURQWDQGZD\VWRRYHUFRPHWKHP

7KHW\SHRIPLVVLRQRUWKHQDWXUHRIWKHLQIRUPDWLRQWREHSUHVHQWHG
GHWHUPLQHVWKHPLVVLRQEULHILQJIRUPDW7KHILYHSDUDJUDSKRSHUDWLRQRUGHU
LVWKHPRVWFRPPRQIRUPDWXVHG2WKHUVLQFOXGHWKHPRYHPHQWRUGHU
VXVWDLQPHQWRUGHUDQGUHFRQQDLVVDQFHRUGHU

6WDII%ULHILQJ

7KHSXUSRVHRIDVWDIIEULHILQJLVWRFRRUGLQDWHXQLWHIIRUWVE\LQIRUPLQJ
WKH&RPPDQGHUDQGVWDIIRIWKHFXUUHQWVLWXDWLRQ7KHSHUVRQZKR
FRQYHQHVWKHVWDIIEULHILQJVHWVWKHDJHQGD6WDIIUHSUHVHQWDWLYHVHDFKSUHVHQW
UHOHYDQWLQIRUPDWLRQIURPWKHLUIXQFWLRQDODUHDV

6WDIIEULHILQJVPD\LQYROYHH[FKDQJHRILQIRUPDWLRQDQQRXQFHPHQWRI
GHFLVLRQVLVVXDQFHRIGLUHFWLYHVRUSUHVHQWDWLRQRIJXLGDQFH7KH\PD\
KDYHFKDUDFWHULVWLFVRILQIRUPDWLRQEULHILQJVGHFLVLRQEULHILQJVDQG
PLVVLRQEULHILQJV

$WWHQGDQFHDWVWDIIEULHILQJVYDULHVZLWKWKHVL]HRIWKH+4W\SHRI
RSHUDWLRQDQG&RPPDQGHU¶VSUHIHUHQFHV*HQHUDOO\WKH&RPPDQGHU
GHSXWLHVRUDVVLVWDQWVFKLHIRIVWDII;2DQGFRRUGLQDWLQJDQGVSHFLDO
VWDIIRIILFHUVDWWHQG5HSUHVHQWDWLYHVIURPPDMRUVXERUGLQDWHFRPPDQGV

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
   
PD\EHSUHVHQW7KHFKLHIRIVWDII;2XVXDOO\SUHVLGHV7KH
&RPPDQGHUXVXDOO\FRQFOXGHVWKHEULHILQJEXWPD\WDNHDQDFWLYHSDUW
WKURXJKRXWLW

,QJDUULVRQVWDIIEULHILQJV VRPHWLPHVFDOOHG³VWDIIFDOOV´ DUHRIWHQ
UHJXODUO\VFKHGXOHG,QFRPEDWVWDIIEULHILQJVDUHKHOGDVQHHGHG7KH
SUHVHQWDWLRQRIVWDIIHVWLPDWHVFXOPLQDWLQJLQD&RPPDQGHU¶VGHFLVLRQWR
DGRSWD&2$LVDIRUPRIVWDIIEULHILQJWKDWLQFRUSRUDWHVDVSHFWVRID
GHFLVLRQEULHILQJ,QWKLVW\SHRIEULHILQJVWDIIUHSUHVHQWDWLYHVXVHWKH
UXQQLQJHVWLPDWHIRUWKHLUUHVSHFWLYH:))DVDQRXWOLQH




7KLVSRUWLRQOHIWEODQNLQWHQWLRQDOO\

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
   

&4$24%+ )$80(4.*

7KHIROORZLQJFKHFNOLVWPD\EHIRXQGLQ$SSHQGL[%0LOLWDU\%ULHILQJV
)LJXUH%)0

0LOLWDU\%ULHILQJ&KHFNOLVW

$QDO\]H6LWXDWLRQDQG3UHSDUHD%ULHILQJ2XWOLQH 
D$XGLHQFH 
• 1XPEHU" 
• &RPSRVLWLRQ"6LQJOHVHUYLFHRUMRLQW"&LYLOLDQV")RUHLJQQDWLRQDOV" 
• :KRDUHWKHUDQNLQJPHPEHUV" 
• :KDWDUHWKHLURIILFLDOSRVLWLRQV" 
• :KHUHDUHWKH\DVVLJQHG"

• +RZZHOOGRWKH\NQRZWKHVXEMHFW"

• $UHWKH\JHQHUDOLVWVRUVSHFLDOLVWV"

• :KDWDUHWKHLULQWHUHVWV"

• :KDWDUHWKHLUSHUVRQDOSUHIHUHQFHV"

• :KDWLVWKHDQWLFLSDWHGUHDFWLRQ"

E3XUSRVHDQG7\SH

• ,QIRUPDWLRQEULHILQJ WRLQIRUP "

• 'HFLVLRQEULHILQJ WRREWDLQGHFLVLRQ "
• 0LVVLRQEULHILQJ WRUHYLHZLPSRUWDQWGHWDLOV " 
• 6WDIIEULHILQJ WRH[FKDQJHLQIRUPDWLRQ " 
F6XEMHFWRI%ULHILQJ 
• :KDWLVWKHVSHFLILFVXEMHFW" 
• :KDWLVWKHGHVLUHGFRYHUDJH" 
• +RZPXFKWLPHZLOOEHDOORFDWHG" 
G3K\VLFDO)DFLOLWLHVDQG6XSSRUW1HHGHG 
• :KHUHZLOOWKHEULHILQJEHSUHVHQWHG" 
• :KDWDUUDQJHPHQWVZLOOEHUHTXLUHG" 
• :KDWDUHWKHYLVXDODLGIDFLOLWLHV" 
• :KDWDUHWKHGHILFLHQFLHV" 
• :KDWDFWLRQVDUHQHHGHGWRRYHUFRPHGHILFLHQFLHV" 
H3UHSDUH6FKHGXOH 
• )LQLVKDQDO\VLVRIWKHVLWXDWLRQ 
• 3UHSDUHSUHOLPLQDU\RXWOLQH 
• 'HWHUPLQHUHTXLUHPHQWVIRUWUDLQLQJDLGVDVVLVWDQWVDQGUHFRUGHUV

• (GLWRUUHGUDIW
• 6FKHGXOHUHKHDUVDOVIDFLOLWLHVDQGFULWLTXHV

• $UUDQJHIRUILQDOUHYLHZE\UHVSRQVLEOHDXWKRULW\





%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
   
&RQVWUXFW%ULHILQJ
D&ROOHFW0DWHULDO
• 5HVHDUFK
• %HFRPHIDPLOLDUZLWKWKHVXEMHFW
• &ROOHFWDXWKRULWDWLYHRSLQLRQVDQGIDFWV
E3UHSDUH)LUVW'UDIW
• 6WDWHSUREOHP LIQHFHVVDU\ 
• ,VRODWHNH\SRLQWV IDFWV 
• ,GHQWLI\FRXUVHVRIDFWLRQ
• $QDO\]HDQGFRPSDUHFRXUVHVRIDFWLRQ 6WDWHDGYDQWDJHVDQGGLVDGYDQWDJHV
• 'HWHUPLQHFRQFOXVLRQVDQGUHFRPPHQGDWLRQV
• 3UHSDUHGUDIWRXWOLQH
• ,QFOXGHYLVXDODLGV
• )LOOLQDSSURSULDWHPDWHULDO
• 5HYLHZZLWKDSSURSULDWHDXWKRULW\
F5HYLVH)LUVW'UDIWDQG(GLW
• 0DNHVXUHWKDWIDFWVDUHLPSRUWDQWDQGQHFHVVDU\
• ,QFOXGHDOOQHFHVVDU\IDFWV
• ,QFOXGHDQVZHUVWRDQWLFLSDWHGTXHVWLRQV
• 3ROLVKPDWHULDO
G3ODQ8VHRI9LVXDO$LGV
• &KHFNIRUVLPSOLFLW\DQGUHDGDELOLW\
• 'HYHORSPHWKRGIRUXVH
H3UDFWLFH
• 5HKHDUVH ZLWKDVVLVWDQWVDQGYLVXDODLGV 
• 3ROLVK
• ,VRODWHNH\SRLQWV
• 0HPRUL]HRXWOLQH
• 'HYHORSWUDQVLWLRQV
• 8VHGHILQLWLYH ZRUGV
'HOLYHU%ULHILQJ
)ROORZXS
D (QVXUHXQGHUVWDQGLQJ
E 5HFRUGGHFLVLRQ
F ,QIRUPSURSHUDXWKRULWLHV



%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  ! 

$8)'%48./2
22$8*4<$7$'04%+

7KHIROORZLQJWHFKQLTXHVPD\SURYHKHOSIXOIRUWKHVWDIIRIILFHUUHTXLUHGWR
FRQGXFWEULHILQJV

ƒ /DQJXDJH±.HHSLWVLPSOH&RQYHUVDWLRQDOODQJXDJHZRUNVEHVW
ƒ $IIHFWLRQ±%H\RXUVHOI3HULRG
ƒ *HVWXUHV±8VHFDXWLRXVO\DOWKRXJKWKH\GRWHQGWRHDVHWHQVLRQV
ƒ :RUGV±8QGHUVWDQGDEOHZRUGVZRUNEHVWPDNHOLVWHQLQJHDV\
ƒ 6HQWHQFHV±/HW\RXUYHUEVEHYHUEVDQGQRXQVEHQRXQV
ƒ $XGLHQFHFRQWDFW±/RRNDWWKHP'RQRWLJQRUHWKHP
ƒ +XPRU±:KHQLQGRXEWGRQ¶WXVHLWHVSHFLDOO\LI\RX¶UHQRWQRUPDOO\
IXQQ\6HHDIIHFWLRQDERYH
ƒ 8QLW\±.HHSWKHVXEMHFWLQWKHIRUHIURQW'RQ¶WGLJUHVV
ƒ $FFXUDF\±*HWLWULJKW&KHFNDQGGRXEOHFKHFNGDWD
ƒ &ODULW\±.HHSLWVLPSOHDQGGLUHFW
ƒ &RKHUHQFH±2UJDQL]HWKHWDONORJLFDOO\
ƒ 2EMHFWLYLW\±7HOOLWOLNHLWLV1RVDOHVSLWFK
ƒ &RPSOHWHQHVV±7HOOWKHFRPSOHWHVWRU\$OORILW

6HFWLRQ±0LOLWDU\:ULWLQJ

$%$&'(

:ULWLQJFRQVXPHVODUJHDPRXQWVRIDVWDIIRIILFHU¶VWLPH+LVSURGXFWLYLW\
DQGXOWLPDWHO\VXFFHVVGHSHQGODUJHO\RQWKHVWDIIRIILFHU¶VDELOLWLHVWR
FRPPXQLFDWHERWKRUDOO\DQGLQZULWLQJ,WJRHVZLWKRXWVD\LQJWKDW
HIIHFWLYHZULWLQJLVDQHVVHQWLDOVNLOOIRUHYHU\VWDIIRIILFHU(IIHFWLYHQHVVLV
WKHNH\WRVXFFHVV:KHUHDVSHDNHUPD\JHWDVHFRQGFKDQFHWR
FRPPXQLFDWHHIIHFWLYHO\DZULWHURQO\JHWVRQHVKRWWKHZULWLQJPXVW
VWDQGRQLWVRZQ

773Ź 7KHDELOLW\WRZULWHHIIHFWLYHO\LVDUJXDEO\WKHVLQJOHPRVW
YDOXDEOHVNLOODVWDIIRIILFHUFDQGHYHORS/HDUQKRZWRZULWH
HIIHFWLYHO\

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
 !" 

&4*4%+$8)%4C6$.

7KHUHDUHVHYHUDO$UP\FRXUVHVWKDWWHDFKHIIHFWLYHZULWLQJ7KLVLVQRWDQ
DWWHPSWWRWHDFKLWEXWWROD\RXWWKHEDVLFV7REHHIIHFWLYHPLOLWDU\
ZULWLQJPXVWGHPRQVWUDWHWKHIROORZLQJSULQFLSOHVRIHIIHFWLYHVW\OH
ƒ $FFXUDF\±UHSUHVHQWRQO\HVVHQWLDODQGDFFXUDWHIDFWV
ƒ %UHYLW\DQGFRPSOHWHQHVV±NHHSWRHVVHQWLDOVNHHSWRWKHSRLQW
ƒ &ODULW\±EHFOHDUDQGIXOO\XQGHUVWRRG
ƒ &RKHUHQFH±SUHVHQWVDVXEMHFW¶VORJLFDOGHYHORSPHQWDUUDQJHPHQW
ƒ 8QLW\±WKHZULWLQJRYHUDOODQGE\SDUDJUDSKDGKHUHVWRDVLQJOHLGHD
ƒ &RUUHFWQHVV±EHWHFKQLFDOO\FRUUHFW VSHOOLQJSXQFWXDWLRQ 

7KHZULWHUPXVWSXWWKHERWWRPOLQHXSIURQW %/8) 7KLVPHDQV
ƒ $SXUSRVHVWDWHPHQW ZKDWWRH[SHFW 
ƒ $WKHVLVVWDWHPHQW VLQJOHVHQWHQFHWKDWFRPPXQLFDWHVZKDWLVPRVW
LPSRUWDQWWRWKHUHDGHU 
ƒ 0DMRUSDUWV HDFKVXSSRUWVWKHWKHVLVDQGEHJLQVZLWKLWVRZQWRSLF
VHQWHQFH 
ƒ &RQFOXVLRQ ZUDSVXSDQGUHLWHUDWHVWKHPDMRUSDUWV 

,QGLYLGXDOVHQWHQFHVVKRXOGGRKDYHWKHIROORZLQJ
ƒ 6HQWHQFHVFRQWDLQHIIHFWLYHZRUGVDQGSKUDVHV
• :RUGVDUHFRQFUHWHHDV\WRXQGHUVWDQGFRPPRQIDPLOLDU
ODUJHYRFDEXODULHVDUHIRUUHFHLYLQJQRWVHQGLQJ 
• $UHQHLWKHUZRUG\VWLOWHGQRUFRQIXVLQJ
ƒ 6HQWHQFHVDUHFOHDUFRQFLVHORJLFDO
ƒ 6HQWHQFHVDUHFRPSOHWH PLVVLQJQRWKLQJ 
ƒ 6HQWHQFHVDUHXQLILHG DOOSDUWVFRQWULEXWHWRXQGHUVWDQGLQJ 
ƒ 6HQWHQFHVJHQHUDOO\XVHDFWLYHYRLFH VWURQJDFWLYHSUHFLVHYHUEV 

,QGLYLGXDOSDUDJUDSKVVKRXOGEHPHDQLQJIXO
ƒ 3DUDJUDSKVDUHVKRUWLGHDOO\OHVVWKDQRQHLQFKGHHS
ƒ 3DUDJUDSKVDUHZHOORUJDQL]HGXVLQJDQXPEHURIRSWLRQV
• 7LPH

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 ! 
• 6SDFH
• *HQHUDOWRVSHFLILF RUYLFHYHUVD 
• &OLPD[
• &RPSDUHDQGFRQWUDVW
• &DXVHDQGHIIHFW
• 'HILQLWLRQ
ƒ 3DUDJUDSKVDUHZHOOGHYHORSHG
• /LPLWHGWRDVLQJOHWRSLF
• 6WDUWE\WHOOLQJZKDWLWLVDERXW
• $GGVXSSRUWLQJWKRXJKWVRULGHDV
• 3URJUHVVIURPRQHSDUWWRWKHQH[W
• )LQDOVHQWHQFHSURYLGHVHPSKDVLV
ƒ 3DUDJUDSKVDUHDUUDQJHGORJLFDOO\
• ,QLWLDOSDUDJUDSK V H[SODLQZKDWWKHZULWLQJLVDERXW
• %RG\FRQVLVWVRIRQHRUPRUHVXSSRUWLQJSDUDJUDSKV
• &ORVLQJSDUDJUDSKVXPVXSWKHLPSRUWDQWSRLQWVRIIHUVD
UHFRPPHQGDWLRQRUGHWDLOVDGDWHIRUFRPSOHWLRQ LI
GLUHFWLYH 

773Ź ,QZULWLQJ/(66LV025(,WLVIDUPRUHGLIILFXOWWRJHW\RXU
SRLQWDFURVVLQRQHSDJHWKDQLWLVLQWHQSDJHV

*'22*6-4$.

)0GHILQHVDVWDIIVWXG\DVDIRUPDOUHSRUWRIWKHPHWKRGRORJ\DQG
LQIRUPDWLRQXVHGWRVROYHDSUREOHPRUDQVZHUDTXHVWLRQ,WUHTXHVWVWKH
GHFLVLRQPDNHUWRDFWRQLWVUHFRPPHQGDWLRQDQGSURYLGHVWKHUHTXLUHG
LPSOHPHQWLQJGRFXPHQWVIRUVLJQDWXUH,WLVFRRUGLQDWHGZLWKDOODIIHFWHG
RUJDQL]DWLRQVDQGLQFOXGHVDQ\VWDWHPHQWVRIQRQFRQFXUUHQFHDQGWKH
FRUUHVSRQGLQJFRQVLGHUDWLRQVRIQRQFRQFXUUHQFH$VWDIIVWXG\LV
FRPSUHKHQVLYHLWLQFOXGHVDOOUHOHYDQWLQIRUPDWLRQJDWKHUHGZKLOHVROYLQJ
WKHSUREOHPDQGDFRPSOHWHGHVFULSWLRQRIWKHPHWKRGRORJ\XVHGWRDUULYHDW
WKHUHFRPPHQGHGVROXWLRQ

7KHERG\RIDFRPSOHWHGVWDIIVWXG\LVDVWDQGDORQHGRFXPHQW:KLOH
DQQH[HVDUHDSDUWRIPRVWVWDIIVWXGLHVUHDGHUVVKRXOGQRWQHHGWRUHIHUWR
WKHPWRXQGHUVWDQGWKHUHFRPPHQGDWLRQDQGWKHEDVLVIRULW$QQH[HV
FRQWDLQGHWDLOVDQGVXSSRUWLQJLQIRUPDWLRQ7KH\DUHXVHGWRNHHSWKHERG\
RIWKHVWXG\FRQFLVH

7KHIROORZLQJVWDIIVWXG\IRUPDWLV,$:$5

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 ! 

6WDII6WXG\)RUPDW
ƒ 6XEMHFW$VWDWHPHQWRIWKHVWXG\VXEMHFW%HVSHFLILF³6WDII6WXG\´LV
QRWDQDSSURSULDWHVXEMHFW
ƒ 3UREOHP$FRQFLVHVWDWHPHQWRIWKHLVVXHLQFOXGLQJZKRZKDWZKHQ
DQGZKHUHLISHUWLQHQW
ƒ 5HFRPPHQGDWLRQ5HFRPPHQGDVROXWLRQEDVHGRQWKHFRQFOXVLRQ
ƒ %DFNJURXQG%ULHIO\VWDWHZK\WKHSUREOHPH[LVWVZLWKHQRXJK
LQIRUPDWLRQWRSODFHLWLQFRQWH[W
ƒ )DFWV6WDWHDOOIDFWVWKDWLQIOXHQFHWKHSUREOHPRULWVVROXWLRQ)DFWV
PXVWEHVWDQGDORQHDQGWKHUHLVQROLPLWWRWKHQXPEHUWKDWFDQEH
GLVFXVVHG
ƒ $VVXPSWLRQV/LVWDOODVVXPSWLRQVWKDWDOORZIRUDORJLFDOGLVFXVVLRQRI
WKHSUREOHP
ƒ 3RVVLEOH6ROXWLRQV/LVWDOOVROXWLRQVFRQVLGHUHGZLWKHDFKRQHKDYLQJ
LWVRZQVXESDUDJUDSK
ƒ &ULWHULD/LVWDQGGHILQHWKHVFUHHQLQJDQGHYDOXDWLRQFULWHULDDQGWKH
ZHLJKWLQJIDFWRUVHDFKZLWKLWVRZQVXESDUDJUDSK)DFWVDQG
DVVXPSWLRQVVKRXOGRXWQXPEHUWKHFULWHULD6XESDUDJUDSKVVKRXOGEH
LQFOXGHGWKDWGHVFULEHWKHHYDOXDWLRQZHLJKWLQJDQGHYDOXDWLRQRI
HDFKFULWHULDDVSHFW
ƒ $QDO\VLV6WDWHWKHVROXWLRQVVFUHHQHGRXWDQGWKHVROXWLRQVWKDWDUH
VXEPLWWHGVWDUWLQJZLWKWKHKLJKHVWWRWKHORZHVWVROXWLRQ
ƒ &RPSDULVRQ&RPSDUHWKHVROXWLRQVWRHDFKRWKHULQWKHPDQQHU
RXWOLQHGLQWKHSUHYLRXVSDUDJUDSK
ƒ &RQFOXVLRQ6WDWHWKHFRQFOXVLRQEDVHGRQWKHFRPSDULVRQDQDO\VLV
ƒ &RRUGLQDWLRQ/LVWHYHU\RQHWKDWSDUWLFLSDWHGLQWKHVWDIILQJRIWKH
VWXG\1RQFRQFXUUHQFHVWDWHPHQWVVKRXOGEHLQFOXGHGDV
DWWDFKPHQWV
ƒ $SSURYDO/LQH5HVWDWHWKHUHFRPPHQGDWLRQDQGSURYLGHDIRUPDWIRU
WKHGHFLVLRQPDNHUWRDSSURYHRUGLVDSSURYHWKHDFWLRQ
ƒ 6LJQDWXUH%ORFN,$:$5
ƒ (QFORVXUHV7KHILUVWIRXUHQFORVXUHVDUHVWDQGDUGIRUPLOLWDU\VWDII
VWXGLHV
• (QFORVXUH2QHWKHGRFXPHQWWKDWZLOOLPSOHPHQWWKH
GHFLVLRQUHFRPPHQGHG

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 ! 
• (QFORVXUH7ZRWKHGRFXPHQWWKDWVWDUWHGWKHVWDIIVWXG\
,IYHUEDORUQRVXFKLWHPH[LVWVVWDWHQRWXVHG
• (QFORVXUH7KUHHFRQWDLQVWKHVWDIILQJOLVW,IWRRORQJVWDWH
QRWXVHG
• (QFORVXUH)RXUFRQWDLQVVWDWHPHQWVRIQRQFRQFXUUHQFHRU
FRQFXUUHQFHZLWKFRPPHQWV,IQRVXFKFRPPHQWVH[LVW
VWDWHQRWXVHG

#'7$&.'%- /&&$.7/%-$%8$

*HQHUDO

7KHUHDUHDQXPEHURIW\SHVRISDSHUVDQGFRUUHVSRQGHQFHWKDWVWDII
RIILFHUVDUHRIWHQUHTXLUHGWRZULWH7KLVJXLGHSURYLGHVVRPHH[DPSOHV
DQGKHOSIXOKLQWVIRUWKUHHEDVLFW\SHVRIFRUUHVSRQGHQFHGHFLVLRQSDSHUV
PHPRUDQGDDQGOHWWHUV7KHSULPDU\UHIHUHQFHVIRUWKLVVHFWLRQDUH$5
,QIRUPDWLRQ0DQDJHPHQW3UHSDULQJDQG0DQDJLQJ&RUUHVSRQGHQFH
DQG)0

'HFLVLRQ3DSHUV

$GHFLVLRQSDSHULVDSLHFHRIFRUUHVSRQGHQFHWKDWUHTXHVWVWKHGHFLVLRQ
PDNHUWRDFWRQLWVUHFRPPHQGDWLRQDQGSURYLGHVWKHUHTXLUHG
LPSOHPHQWLQJGRFXPHQWVIRUVLJQDWXUH8VHDGHFLVLRQSDSHUZKHQD
IRUPDOUHSRUWLVQRWQHFHVVDU\RUWKHGHFLVLRQPDNHUGRHVQRWUHTXLUHWKH
GHWDLOVDVWDIIVWXG\SURYLGHV

'HFLVLRQSDSHUVDUHEULHI8QOLNHVWDIIVWXGLHVGHFLVLRQSDSHUVDUHQRWVHOI
FRQWDLQHG)RUDGHFLVLRQSDSHUPXFKRIWKHPDWHULDOWKDWZRXOGEH
LQFOXGHGLQDVWDIIVWXG\LVNHSWLQWKHDFWLRQRIILFHU¶VILOH'HFLVLRQSDSHUV
FRQWDLQWKHPLQLPXPLQIRUPDWLRQWKHGHFLVLRQPDNHUQHHGVWRXQGHUVWDQG
WKHDFWLRQDQGPDNHDGHFLVLRQ7KHDFWLRQRIILFHUV\QWKHVL]HVWKHIDFWV
VXPPDUL]HVWKHLVVXHVSUHVHQWVIHDVLEOHDOWHUQDWLYHVDQGUHFRPPHQGVRQH
RIWKHP(VVHQWLDOH[SODQDWLRQVDQGRWKHULQIRUPDWLRQDUHDWWDFKHGDV
HQFORVXUHVZKLFKDUHDOZD\VWDEEHG

3UHSDUHGHFLVLRQSDSHUVDVLQIRUPDOPHPRUDQGD VHH$5 LQWKH
IRUPDWEHORZ7KLVIRUPDWSDUDOOHOVWKHVWHSVRI$UP\SUREOHPVROYLQJ
&RPPDQGVDQGRWKHUDJHQFLHVRIWHQHVWDEOLVKIRUPDWVWDQGDUGVWRPHHW
ORFDOUHTXLUHPHQWV'HFLVLRQSDSHUVVKRXOGQRWH[FHHGWZRSDJHV
H[FOXGLQJWKHVWDIILQJOLVWDQGVXSSRUWLQJGRFXPHQWDWLRQ7KHFRRUGLQDWLRQ
UHTXLUHPHQWVIRUDGHFLVLRQSDSHUDUHWKHVDPHDVWKRVHRIDVWDIIVWXG\
6RXUFH)0 
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
 ! 

)RUPDWIRUD'HFLVLRQ3DSHU

2IILFH 6\PERO 0DUNV1XPEHU  'DWH
0(025$1'80)25
68%-(&7

)25'(&,6,21
385326(
5(&200(1'$7,21
%$&.*5281'$1'',6&866,21
,03$&76
&225',1$7,21

&RI6 &21&85121&21&85 BBBBBBBBBBBB&07BBBBB '$7(


27+(5 &21&85121&21&85 BBBBBBBBBBBB&07BBBBB '$7(
$33529$/',6$33529$/
D 7KDWWKH VWDWHWKHDSSURYLQJDXWKRULW\DQGUHFRPPHQGHGVROXWLRQ 
APPROVE D DISAPPROVE D SEE ME
E 7KDWWKH DSSURYLQJDXWKRULW\ VLJQWKHLPSOHPHQWLQJGLUHFWLYH V  7$%$ 
APPROVE D DISAPPROVE D SE E ME

32,172)&217$&7.


>@(QFOV 6LJQDWXUH%ORFN 
 ,PSOHPHQWLQJGRFXPHQW 7$%$ 
 7DVNLQJGRFXPHQW 7$%% 
 &RRUGLQDWLRQOLVW 7$%& 
 1RQFRQFXUUHQFHV 7$%' 
2WKHUVXSSRUWLQJGRFXPHQWVOLVWHGDVVHSDUDWHHQFORVXUHV 7$%6(WKURXJK= 



0LOLWDU\FRUUHVSRQGHQFHLVUHJXODWHGE\$5,QIRUPDWLRQ
0DQDJHPHQWSUHSDULQJDQG0DQDJLQJ&RUUHVSRQGHQFH$5
HVWDEOLVKHVWKUHHIRUPVRIFRUUHVSRQGHQFHDXWKRUL]HGIRUXVHZLWKLQWKH
$UP\
ƒ /HWWHU
ƒ 0HPRUDQGXP
ƒ 0HVVDJH

6WDQGDUGVIRU$UP\ZULWLQJFRQVWUXFWLQJPLOLWDU\FRUUHVSRQGHQFHDQG
SDFNDJLQJFRUUHVSRQGHQFHDUHDOVRLQFOXGHG

([DPSOHVRIDPHPRUDQGXPDQGDOHWWHUIROORZ7KHVHDUHGRFWULQDO
IRUPDWV,QGLYLGXDOXQLWVPD\KDYHDGGLWLRQDOXQLTXHFRUUHVSRQGHQFH
IRUPDWV8QLW623VVKRXOGLQFRUSRUDWHDQ\FRUUHVSRQGHQFHIRUPDWVWKDW
WKHFRPPDQGHUGHVLUHVEHVWDQGDUGL]HG

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 ! 

0HPRUDQGD

6DPSOH0HPRUDQGXP
































7KHUHDUHWZRW\SHVRIPHPRUDQGDIRUPDODQGLQIRUPDO

ƒ 7KHIRUPDOPHPRUDQGXPLVXVHGIRUFRUUHVSRQGHQFHWKDWLVVHQW
RXWVLGHWKH+4QRWLILFDWLRQRISHUVRQQHODFWLRQVPLOLWDU\RUFLYLOLDQ
DQGIRUVKRZLQJDSSUHFLDWLRQRUFRPPHQGDWLRQWR'HSDUWPHQWRIWKH
$UP\ '$ HPSOR\HHVDQG6ROGLHUV
ƒ ,QIRUPDOPHPRUDQGDDUHXVHGIRULQWHUQDOFRUUHVSRQGHQFHZLWKLQWKH
VDPH+4$VDJHQHUDOUXOHGRQRWXVHLQIRUPDOPHPRUDQGDZKHQ
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
 ! 
FRUUHVSRQGLQJZLWKRUJDQL]DWLRQVQRWIDPLOLDUZLWK\RXURIILFH
V\PERO,QIRUPDOPHPRUDQGDPD\EHSUHSULQWHGDQGXVHGDVIRUP
OHWWHUV

/HWWHUV

/HWWHUVVKRXOGEHXVHGIRUFRUUHVSRQGHQFHWRLQGLYLGXDOVRXWVLGHWKH
FRPPDQGZKHQDSHUVRQDOWRQHLVDSSURSULDWHIRURIILFLDOSHUVRQDO
FRUUHVSRQGHQFHE\PLOLWDU\DQGFLYLOLDQSHUVRQQHODQGIRUOHWWHUVRI
ZHOFRPHDSSUHFLDWLRQFRPPHQGDWLRQDQGFRQGROHQFH

6DPSOH/HWWHU


%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 ! 

6HFWLRQ±0DQDJHPHQW6XSHUYLVLRQDQG
$GPLQLVWUDWLRQ

$%$&'('%'+$3$%* /%.4-$&'*4/%.

*RRGVWDIIRIILFHUVQHHGWREHHIIHFWLYHPDQDJHUVRIUHVRXUFHVHVSHFLDOO\
WLPHDQGPRQH\7KH\PXVWEHJRRGVWHZDUGVDVUHVRXUFHVDUHDQGZLOO
FRQWLQXHWREHDXVWHUH0DQDJHPHQWLVUHODWHGWRHIILFLHQF\DQGUHTXLUHV
VNLOOVLQSODQQLQJRUJDQL]LQJGLUHFWLQJFRRUGLQDWLQJDQGFRQWUROOLQJ
UHVRXUFHVWRDFFRPSOLVKPLVVLRQVDQGWDVNV,QPDQ\UHVSHFWVWKHPLOLWDU\
KDVERUURZHGPXFKIURPWKHEXVLQHVVZRUOG2QWKHRWKHUKDQG
VXFFHVVIXOEXVLQHVVPHQRIWHQORRNWRWKHPLOLWDU\IRUVHYHUDOUHDVRQV
PLOLWDU\SHUVRQQHOKDYHGHYHORSHGKLJKOHYHOVRIVNLOOLQWKH
DIRUHPHQWLRQHGPDQDJHULDODUHDVWKH\KDYHGHYHORSHGDWWUDFWLYHZRUN
SUDFWLFHVDQGHWKLFVDQGPLOLWDU\OHDGHUVKLSKDVSURYHQLWVHOIWLPHDIWHU
WLPH

*'2267$&<4.4/%

7KHW\SLFDOVWDIILQJVHTXHQFHLVDVIROORZVWKHVWDIIUHFRPPHQGVWKH
&RPPDQGHUDSSURYHVRUGLVDSSURYHVDQGRUGHUVDUHLVVXHG7KH
UHPDLQGHURIWKHDFWLRQFRQVLVWVSULPDULO\RIFRPPDQGDQGVWDII
VXSHUYLVLRQRIDJLYHQDFWLRQ7KHVWDIILVFRPPLWWHGWRGRHYHU\WKLQJ
ZLWKLQLWVSRZHUWRDFKLHYHWKHPLVVLRQLQFOXGLQJDVVLVWLQJWKH
&RPPDQGHUWRVXSHUYLVH$IHZUXOHVFRQFHUQLQJVWDIIVXSHUYLVLRQIROORZ

$OHUW6XERUGLQDWHV4XLFNO\

*HQHUDOO\VSHDNLQJWKHVRRQHUDVXERUGLQDWHFRPPDQGLVDOHUWHGWRDQ
XSFRPLQJUHTXLUHPHQWWKHJUHDWHUWKHFKDQFHVRIVXFFHVV,QIDFWWLPHO\
QRWLILFDWLRQRIDQDFWLRQPD\VSHOOWKHGLIIHUHQFHEHWZHHQVXFFHVVDQG
IDLOXUH

7KHUHDUHPDQ\ZD\VWRQRWLI\VXERUGLQDWHVRIXSFRPLQJUHTXLUHPHQWVE\
WHOHSKRQHID[PHVVDJHWKURXJKDQ/12DOHWWHUHWF7KHEHVWPHDQVWR
WKHVLWXDWLRQVKRXOGEHHPSOR\HG:KLOHDWHOHSKRQHQRWLILFDWLRQPD\EH
WKHPRVWH[SHGLWLRXVDQGRIWHQXVHGPHDQVLWFDQQRWHTXDOIDFHWRIDFH
FRRUGLQDWLRQ1RWKLQJFDQVXEVWLWXWHIRUSHUVRQDOFRQWDFW0HDQLQJIXORQ
WKHVSRWREVHUYDWLRQZKLOHDVNLOOLQLWVHOIIDFLOLWDWHVXQGHUVWDQGLQJ
XQPDWFKHGE\DQ\RWKHUPHWKRG


%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 !  
$QVZHUWKH4XHVWLRQV

,WLVXSWRWKHVWDIIRIILFHUWRDQVZHUHLWKHUWKH&RPPDQGHU¶VTXHVWLRQVRU
WKRVHIURPDVXERUGLQDWHFRPPDQG7KHVWDIISURYLGHVWKHQHFHVVDU\
FODULILFDWLRQRIDQLVVXH7KHVWDIIDWHDFKLQWHUPHGLDWH+4VKRXOGDWWHPSW
WRVROYHDJLYHQSUREOHPZLWKLWVRZQUHVRXUFHVDQGZLWKLQLWVRZQ
FDSDELOLWLHVEHIRUHSDVVLQJLWDORQJ

0RQLWRUWKH$FWLRQ

7KHVWDIIPRQLWRUVWKHSURJUHVVRIDQDFWLRQRQFHVHWLQPRWLRQ7KLVPD\
WDNHPDQ\IRUPVIURPGDLO\FRQYHUVDWLRQVWRIUHTXHQWYLVLWVWRSHULRGLF
UHSRUWV7KHGHJUHHRIFRQWDFWGHSHQGVXSRQWKHFULWLFDOLW\RIWKHDFWLRQDQG
WKHVSHHGDWZKLFKLWVKRXOGPRYH,WHPVRIFRPPDQGLQWHUHVWREYLRXVO\
UHTXLUHPRUHDWWHQWLRQWKDQGRURXWLQHPDWWHUVVLQFHRQHRIWKHVWDII¶V
SULPDU\UHVSRQVLELOLWLHVLVWRNHHSWKH&RPPDQGHULQIRUPHG7KHFRQGXFW
RIFRRUGLQDWLRQYLVLWVLVDPDMRUWRSLFXQWRLWVHOI

5HSRUWRQWKH$FWLRQ

7KHVWDIIRIILFHURIWHQUHSRUWVWKHUHVXOWRIKLVDFWLRQVDQGILQGLQJV
IRUPDOO\RULQIRUPDOO\DWOHDVWWRWKHLPPHGLDWHVXSHUYLVRU7KLVRIWHQ
WDNHVWKHIRUPRIDWULSUHSRUW

-34%4.*&'*4/%

*RRGVWDIIRIILFHUVPXVWDOVREHHIIHFWLYHDQGRUJDQL]HGDGPLQLVWUDWRUV
7KH\GHDOZLWKODUJHTXDQWLWLHVRILQIRUPDWLRQWKDWPXVWEHSURFHVVHG
XQGHUVWRRGDQGUHFDOOHGDVUHTXLUHG7KHPDLQWHQDQFHRIGDWDLVDVWDII
UHTXLUHPHQW$OO+4PDLQWDLQOLEUDULHVRIUHJXODWLRQVPDQXDOVDQG
SXEOLFDWLRQV,QDGGLWLRQWRWKHVHVRXUFHVWKHVWDIIRIILFHUPXVWKDYH
DYDLODEOHDQGXVHDGGLWLRQDOLQIRUPDWLRQ'DWDVWRUDJHWDNHVPDQ\IRUPV

0HPRU\

$NHHQPHPRU\LVDYDOXDEOHDVVHWWRDVWDIIRIILFHU7KHDELOLW\WRUHFDOO
SUHFLVHIDFWVILJXUHVDQGGHWDLOVLVLQGLVSHQVDEOH

:RUNLQJ)LOHV

5HFRUGDQGUHIHUHQFHILOHVDUHYHU\XVHIXOEXWPXVWEHVWRUHGSURSHUO\LQ
DFFRUGDQFHZLWKWKHVHFXULW\FODVVLILFDWLRQRIWKHGDWD7KHUHDUHPDQ\
IRUPVRIZRUNLQJILOHVDQGHYHQPRUHGHJUHHVRIGHWDLO7KHUHLVQR³EHVW´

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 !! 
ZD\WRPDLQWDLQWKHVHILOHVEXWDJRRGUXOHRIWKXPELVWKDWWKHVHILOHV
VKRXOGEHXVHDEOHE\RWKHUVLQWKHDEVHQFHRIWKHVWDIIRIILFHU

773Ź $³+27´ER[DQGDVHULHVRIIROGHUVDUHSURYHQPHWKRGVWR
SULRULWL]H\RXUGDLO\DGPLQLVWUDWLYHZRUNORDG([DPSOHVRI
IROGHUVPLJKWLQFOXGH
ƒ ³'R7RGD\´
ƒ ³6LJQDWXUH$SSURYDO´
ƒ ³,1)2/2:3ULRULW\´
%1&RPPDQGHU¶V+DQGERRN86$:&

'DWDEDVHV

$OO+4PDLQWDLQDQXPEHURIGDWDEDVHVWKDWFDQEHDFFHVVHGEXWLWLVRIWHQ
XVHIXOIRUVWDIIRIILFHUVWRPDLQWDLQVHSDUDWHPRUHVSHFLILFGDWDEDVHVWKDW
WKH\DFFHVVIUHTXHQWO\7KHVHPLQLGDWDEDVHVDUHXVHIXOEXWGDWD
FRQVWDQWO\FKDQJHVDQGVXFKPLQLGDWDEDVHVUXQWKHULVNRIFRQWDLQLQJ
RXWGDWHGLQIRUPDWLRQ$QHIIRUWPXVWEHPDGHWRNHHSWKHPXSWRGDWH

3ROLF\)LOHV

&RPPDQGSROLF\LVH[WUHPHO\LPSRUWDQWEXWVWDIIRIILFHUVRIWHQKDYHWR
PDLQWDLQRWKHUSROLF\ILOHVIURPRWKHUVXSHUYLVRUV,WLVLPSRUWDQWWR
XQGHUVWDQGWKHQXDQFHVDQGUHTXLUHPHQWVRIVXSHUYLVRUVDWDOOOHYHOV$Q
H[WHQVLYHSROLF\ILOHPDNHVDVWDIIRIILFHU¶VOLIHHDVLHU

$$*4%+.

7LPHLVRQHRIWKHPRVWFULWLFDOHOHPHQWVIRUDQ\VWDIIRIILFHUXVXDOO\LWLV
LQVKRUWVXSSO\0HHWLQJVZKLOHDGUDZRQWKDWWLPHDUHQHFHVVDU\LQ
RUGHUWRDIIHFWSURSHUSODQQLQJDQGDOORFDWLRQRIUHVRXUFHV$QHIIHFWLYH
PHHWLQJFDQREWDLQWKHGHVLUHGUHVXOWDQGPDNHWKHPRVWSURGXFWLYHXVHRI
WKDWOLPLWHGWLPH

0HHWLQJVVKRXOGEHHVWDEOLVKHGIRUHIILFLHQF\VRWLPHLVQRWZDVWHG
3RVLWLRQVDQGUHFRPPHQGDWLRQVVKRXOGEHVXSSRUWHGE\YDOLGDSSOLFDEOH
GDWDDQGLQIRUPDWLRQ

773Ź 5HGXFHPHHWLQJVE\QXPEHUOHQJWKDQGIUHTXHQF\0DNH
WKHPVKRUWDQGWRWKHSRLQW8VHDVSHFLILFDJHQGD
%1&RPPDQGHU¶V+DQGERRN86$:&


%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 "" 
3UHVHQWDWLRQVKRXOGEHEDVHGRQWKHVDPHFULWHULDDVRWKHU
FRUUHVSRQGHQFHEUHYLW\FODULW\FRPSOHWHQHVVFRKHVLRQHWF
ƒ 'HWHUPLQHLIDPHHWLQJLVQHFHVVDU\
ƒ &DQWKHDSSURSULDWHSHRSOHJDWKHUIRUWKHPHHWLQJDWWKLVWLPH"
ƒ 3ODQWKHPHHWLQJZLWKDQDJHQGDDQGVWLFNWRLW
ƒ ,GHQWLI\WKHREMHFWLYHRIWKHPHHWLQJ (YHU\RQHDSSURDFKHVWKHLVVXH
IURPWKHVDPHVWDUWLQJSRLQW 
ƒ 7KHVWDIIRIILFHUWKDWFDOOVWKHPHHWLQJLVWKHRQHLQFKDUJH 2XWFRPHV
RUUHVXOWVDUHFOHDUO\LGHQWLILHG 
ƒ 6HWDWLPHOLPLWDQGDGKHUHWRLW
ƒ 5HFRUGWKHUHVXOWVRIHDFKDJHQGDLWHPVR\RXZLOONQRZZKDWLVVXHV
VWLOOUHPDLQWREHUHVROYHGDQGZKDWQHHGVWREHIROORZHGXS

'8*48'(#9 #:

*HQHUDO

(DFKEDWWOHVWDIIPHPEHUPXVWKDYHPDVWHU\RIWKHLURZQIXQFWLRQDODUHD
DQGFRPSUHKHQGWKHUHODWHGUHVSRQVLELOLWLHVRIRWKHUVWDIIVHFWLRQVLQRUGHU
WRLQWHJUDWHDQGV\QFKURQL]HVWDIIDFWLRQV$FRPSUHKHQVLYHFDSWXUHRIDOO
WKDWDXQLWPXVWURXWLQHO\GRLQSUHSDUDWLRQIRUGHSOR\PHQWWRDQG
H[HFXWLRQRIFRPEDWRSHUDWLRQVLQDZHOOGHVLJQHGXQLW7$&623LVFULWLFDO

773Ź 7KHPRVWKHOSIXOWRROIRUDQ\&RPPDQGHULVDGHWDLOHG
ZRUNDEOH7$&623
%1&RPPDQGHU¶V+DQGERRN86$:&

7$&623'HVLJQ

7KHUHDUHVHYHUDOZD\VWRGHVLJQRUJDQL]HD7$&6237KHIROORZLQJDUH
IRXUSRVVLEOH7$&623GHVLJQV
ƒ %\:))
ƒ %\XQLW0(7/
ƒ %\2325'VHTXHQFH
ƒ %\EDWWOHFDUGVHTXHQFH


%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 " 

773Ź $JRRG$GPLQLVWUDWLYH623VROYHVDORWRISUREOHPVEXWRQO\
LILWLVGHWDLOHGDQGUXWKOHVVO\HQIRUFHG,WLVDOVRDJRRGWRRO
IRUHQVXULQJMREFRQWLQXLW\
%1&RPPDQGHU¶V+DQGERRN86$:&

'HVLJQE\:DUILJKWLQJ)XQFWLRQ

2UJDQL]LQJDXQLW7$&623E\:))SURYLGHVDZLGHUDQJHRIIOH[LELOLW\
IRULQWHJUDWLQJFRPSOH[VWDIIDFWLYLWLHV HJ,3% DQGVWDIIVXSSRUWRIXQLW
0(7/2UJDQL]LQJE\:))DOVRSURYLGHVFRPPDQGHUVDQGVWDIIVWKH
DGGHGDGYDQWDJHRI³QLFKH´ILQGLQJVWKDWLVILQGLQJDGRFWULQDOORFDWLRQ
IRUXQLTXHWDVNDFWLYLWLHVWKDWPD\QRWILWHOVHZKHUH

'HVLJQE\8QLW0LVVLRQ

2UJDQL]LQJD7$&623DORQJXQLWPLVVLRQOLQHVSURYLGHVWKHDGYDQWDJHRI
DGGUHVVLQJGHWDLOHGVWDIIV\QFKURQL]DWLRQDQGH[HFXWLRQWRVXSSRUWD
VSHFLILFPLVVLRQRIWKHXQLW¶V0(7/7KHUHDUHWZRVWDIIWDVNFDWHJRULHV
IRUHYHU\PLVVLRQUHTXLUHPHQWFRPPRQDQGVWDIIXQLTXH3URYLGLQJD
7$&623WKDWLQFRUSRUDWHVWKHVHFDWHJRULHVIRUHDFK%1PLVVLRQSURYLGHV
DQH[FHOOHQWYHKLFOHIRUVWDIIHIILFLHQF\DQGHIIHFWLYHQHVV

'HVLJQE\2325'

%HFDXVHRIDVWDII¶VKDELWXDOXQGHUVWDQGLQJRIWKH2325'HVWDEOLVKLQJD
XQLW7$&623DORQJ2325'$QQH[OLQHVSUHVHQWVDOHYHORIVWDII
IDPLOLDULW\WKDWPD\VXEVWDQWLDOO\DGGWR7$&623XQGHUVWDQGLQJDQG
HIILFLHQWHIIHFWLYHXVH:KHQD%1VWDIIKDVFRQWULEXWHGWRDQGH[HFXWHG
IURPDQ2325'RYHUDQH[WHQGHGSHULRGWKHSLHFHVSDUWVGHWDLODQG
VWDIILQWHJUDWLRQUHTXLUHPHQWVLQDQRUGHUEHFRPHVHFRQGQDWXUH
2UJDQL]LQJWKHXQLW7$&623WRWDNHDGYDQWDJHRIWKLVIDPLOLDULW\PDNHV
VHQVH

'HVLJQE\%DWWOH&DUG

0XOWLIDFHWHGWDVNVLGHQWLILHGDVFULWLFDOWRPLVVLRQDFFRPSOLVKPHQWRUMXVW
GLIILFXOWWRDFKLHYHWRVWDQGDUGEHFDXVHRIFRPSOH[LW\OHQGWKHPVHOYHVWR
XQGHUVWDQGLQJYLDIRFXVHG³KRZWR´EDWWOHFDUGV$QHQWLUH7$&623FDQ
EHGHVLJQHGDURXQGEDWWOHFDUGVRUEDWWOHFDUGVFDQEHLQWHJUDWHGLQWR
DQRWKHU7$&623IRUPDW7KH\DUHXVHIXODVVWDQGDORQHMREDLGVIRUXVH
E\XQLWPHPEHUVGXULQJPLVVLRQSODQQLQJDQGH[HFXWLRQ)RUHYHU\

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 " 
SHUFHLYHGZHDNQHVV HJPLVVLRQDQDO\VLVZDUJDPLQJ EDWWOHFDUGV
FDQEHGHYHORSHGWRHQKDQFHXQLWSHUIRUPDQFH

7KH7$&623/LIH&\FOH

7KHXQLW7$&623LVDOLYLQJGRFXPHQWDQGLQWKDWYHLQKDVDOLIHF\FOH
IRUGHYHORSPHQWDQGFKDQJH$7$&623PDQDJHPHQWSODQLVFULWLFDOWR
WKLVF\FOH7KH7$&623OLIHF\FOHIRUGHYHORSPHQWDQGFKDQJHEHJLQV
ZLWKVWDIIPHPEHUVLQWURGXFLQJDGGLWLRQVFKDQJHV7KHF\FOHFRQWLQXHV
ZLWKLQIRUPDWLRQDSSURYDOHGLWLQJYLDVWDIILQJGLVWULEXWLRQ
DFNQRZOHGJHPHQWRIUHFHLSWIDPLOLDUL]DWLRQWUDLQLQJXVLQJZKDW\RXKDYH
OHDUQHGDQGXSGDWLQJWKHSLHFHVDQGSDUWVZKHQDSSURSULDWH7KH
IROORZLQJJUDSKLFGHSLFWVWKHF\FOH5HIHUWRLWZKHQPDQDJLQJWKHXQLW
7$&6232WKHUWKDQIRUPDWH[DPSOHVFXUUHQWGRFWULQHGRHVQRWDGGUHVV
WKH7$&623LQVXIILFLHQWGHWDLOWRDVVLVWLQWKHGHYHORSPHQWDQGFKDQJH
F\FOH

7$&623/LIH&\FOH

$FNQRZOHGJHPHQW  

 &200$1'(5 
)DPLOLDUL]DWLRQ
*8,'$1&( 'LVWULEXWLRQ 




8WLOL]DWLRQ
8QLW
6WDIILQJ

  
7$&623



$FWLRQ$JHQFLHV

8SGDWHV

 



773Ź 8VHWKHIROORZLQJFKHFNOLVWV WKH\FRLQFLGHZLWKWKHOLIHF\FOH
VWHSVVKRZQRQWKHSUHYLRXVJUDSKLF WRHVWDEOLVKDQGPDLQWDLQ
DPDQDJHPHQWV\VWHPIRUWKHXQLW7$&623

$FWLRQ$JHQFLHV
ƒ 7KHF\FOHVWDUWVKHUHZLWKGHYHORSPHQWDQGFKDQJH
ƒ 'HFLGHZKRLVUHVSRQVLEOHIRUSUHSDULQJDQGFKDQJLQJVHFWLRQVRIWKH
7$&623
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
 " 
ƒ ,GHQWLI\WKHVHVWDIIPHPEHUVDQGLQFOXGHWKHLUSRVLWLRQDQG
UHVSRQVLELOLWLHVLQWKH7$&623
ƒ $WDPLQLPXPDVVLJQD7$&623VHFWLRQSDJHDQQH[HWFWRDVWDII
SRVLWLRQSURYLGHPDQGDWRU\UHYLHZXSGDWHJXLGDQFHDQGDUHYLHZ
DQGDSSURYDOVHTXHQFHDIWHUXSGDWHVDUHDFFRPSOLVKHG
ƒ (VWDEOLVKD7$&623³VKHULII´WKHSHUVRQRYHUDOOUHVSRQVLEOHWRWKH
&RPPDQGHUIRUWKH7$&6231RUPDOO\WKH;2LVDJRRGFKRLFH

6WDIILQJ
ƒ (QIRUFHGE\WKH7$&623³VKHULII´
ƒ 1HYHUDVVXPHWKDW7$&623HQWULHVE\RQHVWDIIPHPEHUGRQRW
UHTXLUHUHYLHZ
ƒ $QHZHQWU\RUFKDQJHE\RQHVWDIIPHPEHUPD\GLFWDWHFKDQJHVWR
RWKHUVHFWLRQVRIWKH7$&623
ƒ 7KH7$&623³VKHULII´VKRXOGORRNIRUULSSOHHIIHFWV
ƒ ,QFOXGHDVWUXFWXUHGVWDIILQJVHTXHQFHLQWKH7$&623

'LVWULEXWLRQ
ƒ ,QFOXGHDGLVWULEXWLRQVFKHPHLQWKH7$&623
ƒ ,IWKH7$&623IRUPDWLVDORQJ2325'OLQHVLQFOXGHDQ$QQH[=
'LVWULEXWLRQ
ƒ 0RUHLVEHWWHU'LVWULEXWHWRWKHFRRUGLQDWLQJDQGVSHFLDOVWDIIDOO
:))HOHPHQWVVXERUGLQDWHXQLWVDQGWKH%'(+4
ƒ 3URYLGHPXOWLSOHFRSLHVWRDOO
ƒ 1XPEHUHDFKFRS\WRHQVXUHFKDQJHVDUHPDGHWRDOO
ƒ 0DLQWDLQDQXPEHUHGFRS\OLVWLQWKH7$&623

$FNQRZOHGJHPHQW
ƒ 1HYHUDVVXPHD7$&623GLVWULEXWHGLVD7$&623UHFHLYHG
ƒ (QVXUHUHFLSLHQWVVLJQIRUHDFK7$&6235HFRUGWKHGDWH
ƒ 7KH7$&623³VKHULII´PDLQWDLQVWKHDFNQRZOHGJHPHQWILOH
ƒ ,QFOXGHDFNQRZOHGJHPHQWSURFHGXUHVLQWKH7$&623
ƒ (QVXUH7$&623DFNQRZOHGJHPHQWSURFHGXUHVDUHIROORZHGXSRQ
LQLWLDO7$&623UHFHLSWDQGXSRQFKDQJH

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
 " 
)DPLOLDUL]DWLRQ
ƒ 1HYHUDVVXPHWKDWDQ\XQLWPHPEHULVFRPSOHWHO\IDPLOLDUZLWKWKH
7$&623
ƒ $OZD\VDVVXPHWKDWIDPLOLDUL]DWLRQWUDLQLQJLVUHTXLUHG
ƒ &RQGXFWIDPLOLDUL]DWLRQWUDLQLQJRQDURXWLQHUHFXUULQJEDVLV
ƒ 0DNHLWDQRIILFHU1&2SURIHVVLRQDOGHYHORSPHQW 23'1&23' 
FODVVGXULQJZHHNHQGGULOOV
ƒ +DYHLQGLYLGXDOVWDIIVHFWLRQVSUHVHQWXQLWLQVWUXFWLRQRQDUHDVRIWKH
7$&623DSSOLFDEOHWRWKHLU:))UHVSRQVLELOLWLHV
ƒ $GG7$&623IDPLOLDUL]DWLRQWUDLQLQJWRWKHXQLWWUDLQLQJFDOHQGDU
ƒ $VVLJQWUDLQHUV7UDLQWKHWUDLQHUV
ƒ 7KH7$&623³VKHULII´VKRXOGURXWLQHO\FKHFNZLWKXQLWVWDIIRQQHZ
DQGHPHUJLQJGRFWULQHRUPLVVLRQUHTXLUHPHQWVDQGGHWHUPLQHKRZ
WKH\ZLOODIIHFW7$&623FKDQJHVDQGWUDLQLQJ"
ƒ 6SRWFKHFN7$&623NQRZOHGJH

8WLOL]DWLRQ
ƒ +DYHWKH7$&623DYDLODEOHDQGXVHLWIRUHYHU\WUDLQLQJDFWLYLW\QR
PDWWHUWKHOHQJWKRUIRUPDOLW\
ƒ (PSOR\³VXEOLPLQDO´OHDUQLQJ3ODFH7$&623SLHFHVDQGSDUWV MRE
DLGV LQ6ROGLHUFRPPRQDUHDVGXULQJGULOOV7KLVWHFKQLTXHGRHVQRW
UHTXLUHDGHGLFDWHGWUDLQHU7KHNQRZOHGJHJDLQHGFRPHVIURP
FRQVWDQWYLVXDODVVRFLDWLRQ
ƒ +DYHFRSLHVHYHU\ZKHUH«FODVVURRPVEUHDNDUHDVPRWRUSRROV&3V
&YHKLFOHVLQGLYLGXDOVHWF
ƒ 3XWWKHXQLW7$&623RQDFRPSDFWGLVN &' DQGPDNHLW³WDNH
KRPH´HDV\
ƒ ,QFOXGHVWDIIMREDLGVLQWKH7$&623WKDWZLOOKHOSZLWKFULWLFDOWDVNV

8SGDWHV
ƒ ([HFXWHURXWLQHXSGDWHEULHILQJVWRWKH&RPPDQGHUUHJDUGLQJXQLW
VWDWXVRI7$&623GHYHORSPHQWPDLQWHQDQFHIDPLOLDUL]DWLRQDQG
LPSOHPHQWDWLRQ
ƒ :KHQZDVWKH7$&623GHYHORSHG"0XFKRILWPD\QRORQJHUDSSO\
WRFXUUHQWUHTXLUHPHQWV
ƒ 6KRXOGEHVLJQHGE\FXUUHQW&RPPDQGHU
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
 " 

773Ź ,I\RXUXQLWGRHVQRWKDYHD7$&623FRQVLGHUGHYHORSLQJ
RQHWKDWLV
ƒ 3RFNHWVL]HG
ƒ &RPSOHWHEXWFRQFLVHDQGEULHI
ƒ (IIHFWLYHLQUHGXFLQJWKHVL]HRI2325'V
ƒ &RQVLVWHQWZLWK++4623V
ƒ 5HOLDEOHVRXUFHRISURFHGXUHVIRUUHSRUWLQJDQGUHDFWLQJ
WRUHSRUWVRIVHQVLWLYHHTXLSPHQW
ƒ $SSOLFDEOHWRDOO6ROGLHUVLQWKHFRPPDQG
ƒ 1RWIXOORISKLORVRSK\
ƒ $UHOLDEOHVRXUFHIRUIRUPDWVIRUDOOUHSRUWVUHTXLUHGRI
VXERUGLQDWHVRU++4
%1&RPPDQGHU¶V+DQGERRN86$:&












7KLVSRUWLRQOHIWEODQNLQWHQWLRQDOO\

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 " 

773Ź :KHQUHYLHZLQJD7$&623XVHD7$&623FKHFNOLVWVXFKDV
WKHIROORZLQJWRGHWHUPLQHZKDWPRGLILFDWLRQVPD\EH
QHHGHG

7$&623&KHFNOLVW

4XHVWLRQ <HV 1R

'R\RXNQRZZKDWWKH&'5ZDQWVLQWKH7$&623"
'RHVKHNQRZWKHRSWLRQVDYDLODEOH"
,VWKHXQLW7$&623DUUDQJHGDURXQGWKHWHQHWVRISODQSUHSDUHH[HFXWHDV
GHVFULEHGLQ)0"
'RHVWKH7$&623DGHTXDWHO\DGGUHVVWKHXQLW¶VDVVLJQHG0(7/"
'RHVWKH7$&623FRYHUKLJKHU+4UHTXLUHPHQWVHJRSHUDWLRQDO
UHSRUWLQJ"
'RHVWKH7$&623DGGUHVVWKH0'03"
'RHVLWDGGUHVVWKH0'03ZHOOHQRXJKWRHQVXUHVWDIILQWHJUDWLRQ GXULQJ
WKHSODQQLQJSURFHVV"
'RHVWKH7$&623GHWDLOZKDWHDFKVWDIIRIILFHUGRHVGXULQJWKHSODQQLQJ
SURFHVV"
$UHWKHUHXQLWSODQQLQJSUHSDULQJDQGH[HFXWLRQWDVNZHDNQHVVHV
ZKLFKDUHQRWFRYHUHGE\JXLGDQFHLQWKH7$&623"
,VHDFKZHDNWDVNDUHDVXSSRUWHGE\SURFHVV³KRZWR´ DQGVWDIIPHPEHU
GXWLHVDQGUHVSRQVLELOLWLHV"
'RHVWKH7$&623FRQVLGHUSULRULWLHVRIXQLWWDVNV"
$UHWDVNSULRULWLHVLGHQWLILHGE\SODQSUHSDUHH[HFXWH"
'RHVWKH7$&623SURYLGHJXLGDQFHDQGH[DPSOHVWRFRYHUURXWLQHXQLW
UHTXLUHPHQWVHJUHSRUWVUHKHDUVDOVEULHILQJV72&RSHUDWLRQV&3
GHSOR\PHQWVWDUJHWLQJQXPEHUV,65HWF"
+DYHVWDIIMREDLGVEHHQSUHSDUHGWRDVVLVWZLWKGLIILFXOWXQLWWDVNVDQG
LQFOXGHGLQWKH7$&623"
,VWKHUHDQDFWLRQ32&OLVWIRUHDFKVHFWLRQDQQH[HWFLQWKH 7$&623"
,VWKHUHDXQLWVWDIIPHPEHURYHUDOOUHVSRQVLEOHIRUGHYHORSPHQW
PDLQWHQDQFHIDPLOLDUL]DWLRQWUDLQLQJDQGLPSOHPHQWDWLRQRIWKH7$&623"
'RHVWKH7$&623LQFOXGHDQDQQH[WKDWDGGUHVVHVGHYHORSPHQW
PDLQWHQDQFHIDPLOLDUL]DWLRQWUDLQLQJDQGLPSOHPHQWDWLRQRIWKH7$&623"
,VWKHXQLW7$&623VLJQHGE\WKHFXUUHQW&RPPDQGHU"
,VWKHUHDGLVWULEXWLRQOLVWDQQH[IRUWKHXQLW7$&623"
$UHVXIILFLHQWFRSLHVDYDLODEOHWRWKHXQLW",VLWDSSURYHGE\KLJKHU+4V"

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 " 

6HFWLRQ±&RPSRVLWH5LVN0DQDJHPHQW

5LVN0DQDJHPHQW*UDSKLF


7$&623
3ULRULWLHV
&RPPDQGHU¶V

&RPPDQGHU¶V

)0

)0
*XLGDQFH
5LVN$VVHVVPHQW
,GHQWLILHG+D]DUGV
5LVNFRQWUROV
&RPPDQGHU¶V,QWHQW
061$QDO\VLV 5LVN'HFLVLRQV
0DQDJH&RPSRVLWH5LVN
++42325' (YDOXDWLRQRI5LVN
,PSOHPHQWDWLRQ
0'03
5LVN7UDFNLQJ
&RPPDQGHU

0DQDJHPHQW
%DWWOH6WDII

7RROV



$%$&'(

7KHLGHQWLILFDWLRQRIKD]DUGVDQGWKHPDQDJHPHQWRIDVVRFLDWHGULVNLVWKH
UHVSRQVLELOLW\RIDOOVWDIIRIILFHUV7KLVSURFHVVZKLFKLVGHWDLOHGLQ)0
SDUDOOHOVWKH0'03:HKDYHFRQGHQVHGWKHSURFHVVLQWKHIROORZLQJ
SDUDJUDSKV 6RXUFHV)0DQG)0 

/37/.4*$ 4.0'%'+$3$%*9 :#&/8$..

7KHUHDUHILYHVWHSVWR&50DFFRUGLQJWR)0VDQG
ƒ ,GHQWLI\KD]DUGV SHUIRUPHGGXULQJ0'036WHSV 
ƒ $VVHVVKD]DUGV SHUIRUPHGGXULQJ0'036WHSV 
ƒ 'HYHORSFRQWUROVDQGPDNHULVNGHFLVLRQV SHUIRUPHGGXULQJ0'03
6WHSV 
ƒ ,PSOHPHQWFRQWUROV 0'036WHSDQGGXULQJUHKHDUVDODQG
H[HFXWLRQ 
ƒ 6XSHUYLVHDQGHYDOXDWHULVN GXULQJUHKHDUVDODQGH[HFXWLRQ 

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 "  

7KHVWDII WRLQFOXGHWKH6 LGHQWLILHVULVNKD]DUGVDQGDVVHVVHVWKHOHYHO
RIULVNIRUHDFKKD]DUGWKHDVVHVVPHQWLVRYHUVHHQE\WKH67KH
&RPPDQGHUDVVHVVHVZKHUHKHFDQDFFHSWULVN7KH;2LQWHJUDWHVULVN
PDQDJHPHQWLQWRWKHRUGHUVSURFHVV


5LVN0DQDJHPHQWDQGWKH0'03


6WHS±,GHQWLI\KD]DUGV

+D]DUGVDUHVRXUFHVRIGDQJHUVRUULVNVGXHWRHQHP\RUDGYHUVDU\
SUHVHQFHDQGRWKHUFRQGLWLRQVQRWGXHWRHQHP\RUDGYHUVDU\FDSDELOLWLHV

773Ź 7KHPLVVLRQYDULDEOHVRI0(777&SURYLGHDVRXQG
IUDPHZRUNIRULGHQWLI\LQJKD]DUGVZKHQSODQQLQJSUHSDULQJ
DQGH[HFXWLQJRSHUDWLRQV

6WHS±$VVHVVKD]DUGV

+D]DUGVDUHILUVWDVVHVVHGDFFRUGLQJWRILYHGHJUHHVRISUREDELOLW\GHSLFWHG
E\FDSLWDOOHWWHUV$WKURXJK(
ƒ )UHTXHQW $ ±2FFXUVYHU\RIWHQFRQWLQXRXVO\H[SHULHQFHG
ƒ /LNHO\ % ±2FFXUVVHYHUDOWLPHV
ƒ 2FFDVLRQDO & ±2FFXUVVSRUDGLFDOO\

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 "! 
ƒ 6HOGRP ' ±5HPRWHO\SRVVLEOHFRXOGRFFXUDWVRPHWLPH
ƒ 8QOLNHO\ ( ±&DQDVVXPHZLOOQRWRFFXUEXWQRWLPSRVVLEOH

+D]DUGVDUHIXUWKHUDVVHVVHGDFFRUGLQJWRIRXUGHJUHHVRIVHYHULW\GHSLFWHG
ZLWK5RPDQQXPHUDOV
ƒ &DWDVWURSKLF , ±0LVVLRQIDLOXUHRIGHDWK
ƒ &ULWLFDO ,, ±6HYHUHO\GHJUDGHGPLVVLRQSHUPDQHQWRUWRWDOGLVDELOLW\
ƒ 0DUJLQDO ,,, ±'HJUDGHGPLVVLRQFDSDELOLW\ORVWWLPHGXHWRLQMXU\
RULOOQHVV
ƒ 1HJOLJLEOH ,9 ±/LWWOHLPSDFWRQPLVVLRQFDSDELOLW\ILUVWDLG
WUHDWPHQW

+D]DUGVDUHILQDOO\DVVHVVHGDFFRUGLQJWRIRXUOHYHOVRIRYHUDOOULVN
ƒ ([WUHPHO\+LJK5LVN ( 
ƒ +LJK5LVN + 
ƒ 0RGHUDWH5LVN 0 
ƒ /RZ5LVN / 

6WHS±'HYHORSFRQWUROVDQGPDNHULVNGHFLVLRQV

7KLVLVDSDUWVWHS
ƒ 'HYHORSFRQWUROV
ƒ )LQGFRQWUROPHDVXUHV
ƒ 5HDVVHVVULVN
ƒ 0DNHULVNGHFLVLRQ

7KHUHDUHWKUHHPDMRUFDWHJRULHVRIFRQWUROVWKDWPXVWPHHWWKHFULWHULDRI
VXLWDELOLW\IHDVLELOLW\DQGDFFHSWDELOLW\
ƒ (GXFDWLRQDODZDUHQHVV EDVHGRQNQRZOHGJHDQGVNLOOVRIXQLW
LQGLYLGXDOV 
ƒ 3K\VLFDO EDUULHUVJXDUGVVLJQVHWF 
ƒ $YRLGDQFHHOLPLQDWLRQ OHDGHUV¶DFWLRQVWRSUHYHQWFRQWDFW 

$NH\HOHPHQWRIWKHULVNGHFLVLRQLVWRGHWHUPLQHLIWKHULVNLVMXVWLILHG
7KH&RPPDQGHUDORQHPDNHVWKLVGHWHUPLQDWLRQ

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 " 
6WHS±,PSOHPHQWFRQWUROV

,PSOHPHQWLQJFRQWUROVLQYROYHVFRRUGLQDWLRQDQGFRPPXQLFDWLRQDQGE\
LQFRUSRUDWLQJFRQWUROVLQ623VRUGHUVEULHILQJVDQGVWDIIHVWLPDWHV

6WHS±6XSHUYLVHDQGHYDOXDWH

7KHVXSHUYLVLRQDQGHYDOXDWLRQRIULVNLVDOHDGHUVKLSUHVSRQVLELOLW\

5LVN$VVHVVPHQW0DWUL[















&'804%+ 4.0'%'+$3$%*

7KHIROORZLQJULVNPDQDJHPHQWZRUNVKHHWSURYLGHVDWRROIRUWUDFNLQJDQG
DVVHVVLQJULVNWKURXJKRXWWKHULVNPDQDJHPHQWSURFHVV2WKHUH[DPSOHV
DQGWKHLQVWUXFWLRQVIRUZRUNVKHHWXVHFDQEHIRXQGLQ)0&KDSWHU


%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

6DPSOH5LVN0DQDJHPHQW:RUNVKHHW




6DPSOH5LVN$VVHVVPHQWIRUWKH6 0LVVLRQ$QDO\VLV 

65LVN
$VVHVVPHQW +$=$5' &21752/
&RPPXQLFDWLRQVDQG +1,1)%'(GRHVQRW $WWDFKFRPPXQLFDWLRQ
,QIRUPDWLRQV\VWHP KDYHVHFXUH)0EHORZ%1 OLDLVRQWHDPWRHDFK+1%1
PDLQWHQDQFHVWDWXV OHYHO H[DPSOH  H[DPSOH 

$YDLODEOH
FRPPXQLFDWLRQVDVVHWV

++4FRPPXQLFDWLRQV
SODQ





%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

6HFWLRQ±$GYLVLQJ

$GYLVLQJ2SHUDWLRQDO*UDSKLF


7$&623

*XLGDQFH

'RFWULQH

++42UGHU
,QIRUPDWLRQ
0HVVDJHV &'5¶V *XLGDQFH
5HSRUWV 6WDII*XLGDQFH
,QIRUPDWLRQ8SGDWHV
2UGHUV $GYLVHWKH
5XQQLQJ(VWLPDWH
)ULHQGO\6LWXDWLRQ &RPPDQGHUDQG6WDII
0HVVDJHV
(QHP\6LWXDWLRQ 2UGHUV
)RUFH&DSDELOLWLHV 5HSRUWV
$VVHWV$YDLODEOH ,3%
236(& ,65
%DWWOH6WDII

(IIHFWV
5LVN$VVHVVPHQW

$%$&'(

6WDIIVFRQWLQXRXVO\SURYLGHUHOHYDQWLQIRUPDWLRQ 5, WRWKHLUUHVSHFWLYH
FRPPDQGHUVRQWKHSURJUHVVRIRSHUDWLRQV7KHVWDIILVRIIHULQJ
UHFRPPHQGDWLRQVDQGVXJJHVWLRQVLQRUGHUIRUWKHFRPPDQGHUWREDVHD
GHFLVLRQIRUDFWLRQ7KLV5,KHOSVFRPPDQGHUVDFKLHYHVLWXDWLRQDO
XQGHUVWDQGLQJ2QHSLHFHRILQIRUPDWLRQDORQHPD\QRWEHVLJQLILFDQW
KRZHYHUZKHQFRPELQHGZLWKRWKHULQIRUPDWLRQIURPWKH&23L W PD\
DOORZWKH&RPPDQGHUWRIRUPXODWHDQDFFXUDWHFRPPDQGHU¶V
YLVXDOL]DWLRQDQGPDNHDQDSSURSULDWHGHFLVLRQ

6WDIIPHPEHUVLQIRUPDQGDGYLVHWKH&RPPDQGHUDQGRWKHUVWDIIPHPEHUV
FRQFHUQLQJDOOPDWWHUVSHUWDLQLQJWRWKHLULQGLYLGXDOILHOGVRILQWHUHVWDQG
UHODWHGIXQFWLRQDOUHVSRQVLELOLWLHVVSHFLILFDOO\RQ²
ƒ &DSDELOLWLHVOLPLWDWLRQVUHTXLUHPHQWVDYDLODELOLW\DQGHPSOR\PHQW
RIUHVRXUFHV
ƒ &DSDELOLWLHVOLPLWDWLRQVDQGHPSOR\PHQWRIVXSSRUWLQJIRUFHV
ƒ 'LUHFWLYHVDQGSROLF\JXLGDQFHIURPKLJKHUKHDGTXDUWHUV

(IIHFWLYHVWDIIRIILFHUVDGYLVHFRPPDQGHUVZLWKFRUUHFWDQGWLPHO\5,DQG
ZHOODQDO\]HGUHFRPPHQGDWLRQV
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  

-<4.4%+ /%.4-$&'*4/%.

:KHQDGYLVLQJFRQVLGHU\RXUVHOI
ƒ $P,LQDSRVLWLRQRINQRZOHGJHWRRIIHUDGYLFHRUVKRXOG,GHIHU"
ƒ 'R,KDYHWKHULJKWLQIRUPDWLRQIURPZKLFKWRDGYLVH"
ƒ $P,DSSURDFKDEOHLIDGYLFHLVVRXJKW"
ƒ &DQ,DGYLVHRQLQIRUPDWLRQVXFFLQFWO\DQGFOHDUO\"
ƒ ,VDGYLVLQJVXIILFLHQWRUVKRXOG,SURYLGHRUDUUDQJHIRUDVVLVWDQFH"

:KHQDGYLVLQJFRQVLGHU\RXUDXGLHQFH
ƒ 7KHLUH[SHULHQFH
ƒ 7KHLUGXW\SRVLWLRQ
ƒ 7KHRSHUDWLRQDOHQYLURQPHQW VWDWLFPRYLQJHWF 
ƒ 7KHLUDELOLW\WRDVVLPLODWH
ƒ 7LPHDYDLODEOHIRUWKHPWRUHDFW
ƒ %DWWOHUK\WKP

:KHQDGYLVLQJFRQVLGHU\RXUH[SHFWDWLRQV
ƒ :KDWGR\RXH[SHFWIURPWKHSHUVRQ\RXDUHDGYLVLQJ"
ƒ &DQWKHSHUVRQ\RXDUHDGYLVLQJDFKLHYH\RXUH[SHFWDWLRQVZLWKWKH
DGYLFHSURYLGHG"
ƒ +RZZLOO\RXNQRZLIWKHSHUVRQEHLQJDGYLVHGXQGHUVWDQGV\RXU
DGYLFH"$UHIROORZXSTXHVWLRQVQHFHVVDU\"
ƒ ,V\RXUDGYLFHWLPHVHQVLWLYH"'LG\RXVWUHVVWKLV"

*'22-<4.4%+'.0.

)ROORZLQJDUHH[DPSOHVRIVWDIIDUHDVRILQWHUHVWWKDWPD\UHTXLUH\RXU
DGYLFH7KH\DUHQRWPHDQWWREHDOOLQFOXVLYHUDWKHUDVDQH[DPSOHRIWKH
PDJQLWXGHRIVXEMHFWDUHDH[SHUWLVHWKDW\RXPD\KDYHWRPDQDJHLQRUGHU
WRDGYLVHWKH&RPPDQGHUDQGRWKHUVWDIIPHPEHUV

7KHHQWLUHVWDIIVKRXOGEHDEOHWRSURYLGHDGYLFHUHJDUGLQJ
ƒ &DSDELOLWLHVOLPLWDWLRQVUHTXLUHPHQWVDYDLODELOLW\HPSOR\PHQWRI
UHVRXUFHV
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
ƒ &DSDELOLWLHVOLPLWDWLRQVHPSOR\PHQWRIVXSSRUWLQJIRUFHV
ƒ 'LUHFWLYHVDQGSROLF\JXLGDQFHIURP++4
ƒ 3ULRULWLHVIRUHPSOR\PHQWGLVWULEXWLRQVXSSRUW
ƒ $FFHSWDEOHULVNDQGULVNPDQDJHPHQW
ƒ 5HVRXUFHDOORFDWLRQDQGHPSOR\PHQWV\QFKURQL]DWLRQRIRUJDQLFDQG
VXSSRUWLQJDVVHWV
ƒ &RPSOLDQFHZLWK236(&
ƒ (IIHFWLYHQHVVRIVXSSRUW
ƒ ,GHQWLI\UHTXLUHPHQWVIRUDGGLWLRQDOVXSSRUW
ƒ 7UDLQLQJUHTXLUHPHQWV
ƒ &KDQJHVWRWKH&&,5
ƒ ,QVSHFWLRQUHVXOWVDQGUHTXLUHPHQWV
ƒ 0DWWHUVDIIHFWLQJWKHFRPPDQG

$GGLWLRQDOO\WKH6VKRXOGEHDEOHWRSURYLGHDGYLFHUHJDUGLQJWKH
IROORZLQJ
ƒ 6WDWXVRI&HTXLSPHQWDQGSHUVRQQHO
ƒ 3URSRVHGORFDWLRQVRI&QRGHV
ƒ 3URSRVHGORFDWLRQVRIVLJQDOUHOD\UHWUDQVHTXLSPHQW
ƒ 8VHRIDQGZRUNDURXQGVWRDXWRPDWLRQDQGFRPPXQLFDWLRQVV\VWHPV
DQGDVVRFLDWHGSUREOHPV












%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

# 



6HFWLRQ*HQHUDO5HIHUHQFHV

D6(4'%'*$ '($%-'&.

-XOLDQ'DWH&DOHQGDU /HDS<HDU 

-XOLDQ'DWH&DOHQGDU± /HDS<HDU

'D\ -DQ )HE 0DU $SU 0D\ -XQ -XO $XJ 6HS 2FW 1RY 'HF
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
           
       






%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

-XOLDQ'DWH&DOHQGDU 1RQ/HDS<HDU 

-XOLDQ'DWH&DOHQGDU± 1RQ/HDS<HDU
'D\ -DQ )HE 0DU $SU 0D\ -XQ -XO $XJ 6HS 2FW 1RY 'HF
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            
           
           
       

'*$43$ &/67

,QPLOLWDU\RSHUDWLRQVDQGHVSHFLDOO\RUGHUVDQGSODQVWKHGDWHDQGWLPH
DUHRIWHQH[SUHVVHGDVDGDWHWLPHJURXS '7* 7KH'7*LVIRUPHGE\D
VL[GLJLWQXPEHU7KH'7*H[DPSOHZHZLOOXVHLV=$SULO

7KHILUVWWZRGLJLWVRIWKH'7*UHSUHVHQWWKHFDOHQGDUGDWH$]HUR  
SUHFHGHVVLQJOHGLJLWGDWHV LQWKHH[DPSOHDERYH³´UHSUHVHQWVWKHVWRI
WKHPRQWK 'LJLWVWKUHHDQGIRXUUHSUHVHQWWKHKRXUEDVHGRQWKH
KRXUFORFN,QWKHH[DPSOHDERYH³´UHSUHVHQWVKRXUVRUDP 
'LJLWVILYHDQGVL[UHSUHVHQWWKHPLQXWHV,QWKHH[DPSOHDERYH³´
UHSUHVHQWVPLQXWHVSDVWWKHKRXU7KHVL[GLJLWQXPEHULVIROORZHGE\
WKHWLPH]RQHGHVLJQDWRU DFDSLWDOOHWWHU ,QRXUH[DPSOHWKHWLPH]RQH
GHVLJQDWRULV³=´IRU=8/8WLPH7KHFRPSOHWH'7*LVIROORZHGE\WKH

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  
FDOHQGDUPRQWKDQG\HDU LQWKLVH[DPSOH$SULO )ROORZLQJLV
DFKDUWRIWLPH]RQHV

43$=/%$.

7LPH=RQH&KDUW

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
   

/%<$&.4/%'8*/&.

&RQYHUVLRQ)DFWRUV :HLJKW 

8QLWRI /RQJ 0HWULF 6KRUW .LORJUDPV 3RXQGV
0HDVXUH WRQV WRQV WRQV
ORQJWRQ      
PHWULFWRQ      
VKRUWWRQ      
     
NLORJUDP      

&RQYHUVLRQ)DFWRUV 6SHHG 

8QLWRI .QRWV 6WDWXWH .LOR
0HDVXUH PLOHV PHWHUV
SHUKRXU SHUKRXU
NQRW    
PLOHSHU   
KRXU 
NPSHU   
KRXU 

8QLWRI )HHW )HHW 0HWHUV 0HWHUV
0HDVXUH SHU SHU SHU SHU
PLQXWH VHFRQG PLQXWH VHFRQG
NQRW     
PLOHSHU    
KRXU 
NPSHU    
KRXU 

&RQYHUVLRQ)DFWRUV $QJXODU0HDVXUHPHQWV 

8QLWRI 5DGLDQV 'HJUHHV 0LOV 0LQXWHV
0HDVXUH
UDGLDQ     
GHJUHH     
PLO     


%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 ! 
&RQYHUVLRQ)DFWRUV /LQHDU0HDVXUHPHQWV 

8QLWRI 1DXWLFDO 6WDWXWH .LOR 0HWHUV <DUGV
0HDVXUH PLOHV PLOHV PHWHUV
QDXWLFDOPLOH      
VWDWXWHPLOH      
NLORPHWHU      
FDEOHOHQJWK      
IDWKRP      
PHWHU      
\DUG      
IRRW      
LQFK      
FHQWLPHWHU      

&RQYHUVLRQ)DFWRUV 9ROXPH 

8QLWRI &XELF ,PSHULDO 86 /LWHUV 4XDUWV
0HDVXUH IHHW JDOORQV JDOORQV
FXELFIRRW      
LPSHULDOJDOORQ      
86JDOORQ      
OLWHU      
PHDVXUHPHQWWRQ      
EDUUHO SHWUROHXP       

?
4+%'(..$*.

%166HFWLRQ2UJDQL]DWLRQ


‡ $  %DWWDOLRQ6 
‡ 8 ( 6HFWLRQ&+
‡ 8 ( ):'6,*6371&2 HDFK

‡ 8 ( 5DGLR5HWUDQV 6XSHUYLVRU 
‡ 8 ( 7HDP&+ 
‡ 4 ( 65&312350175

‡ % ( /$10*5 ,7,$
‡ 4 ( &312350175 
‡ 8 ( 5DGLR5HWUDQV 235 
‡ % ( /$10*5 ,7,$ 
‡ 8 ( 5DGLR5HWUDQV 235
‡ 8 ( 6LJQDO6376<60175

‡ 8 ( 6,*,1)269&63& 
‡ 8 ( 6LJQDO6376<663& 

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
 " 
%&76LJQDO2UJDQL]DWLRQ +%&7,%&7 


83'$7('%&767(03/$7( 

2:(7RWDO



$26 
8(6,*1$/6376<6&+,() 

1(7:25.0$1$*(0(17
1: 1(7:5.0*77(&+ 
%( 65'$7$6<6,17(5*5$725 
(( (/(&75263(&75801&2 
6( 6$7&202361&2 
%( '$7$6<6,17(*5$725
8( 6,*,1)269&1&2 
%( 65/$10*5 
/-( 65&%/$176<6,167 
%( 1(7:25.63763& 
/-( &$%/(6<6,167$//017 [
%( 1(7:25.63763&

8( 6,*63763& 

,$&1' 
$2 ,1)26<62)),&(5
%( 65,$&1'0*5


&206(& 
%( &206(&&8672',$1 
%( $66,67&206(&&8672',$1 
6,*6<6,17(*5$7,2129(56,*+7,'0 
$: 6,*6<67(&+ 
:( 1(7:.236&+,() 
8( 6,*6<62361&2 
4( ;0616<62361&2
12( 12'$/2366<61&2 
/-( :,5(23(5$7,2161&2 
%( 65,1)26<663 
8( 6,*1$/6376<60$,17$,1(5 




%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6



STAFF OFFICER’S GUIDE 221

BDE Signal Company Assets (HBCT / IBCT)

SRC: 11307G800
Network Extension Network Extension
PLT 22 PLT 22
4 / 1 / 65 / 70 decreases to 4 / 0 / 49 / 53
O2 25A00 O2 25A00
E7 25W40 E7 25W40
Unit of Action Network Support Company provides
JNN SEC JNN SEC LOS and BLOS connectivity to provide UNCLASS,
SECRET and TS/SCI voice and data, tactical
25F30 25F30 network coverage and CP support in the UA AO.
25F20 25F20
25F10 25F10 Capable of direct STEP interface when required.
JNN JNN

25Q20 25Q20
25Q10 25Q10 HQ & Network
25Q10 25Q10
26
LOS V3 LOS V3 Support PLT
25S20 25S20 CO CDR O3 25A
25S10 25S10
25S10 25S10 XO/HQ PL O2 25A
KU TDMA KU TDMA CO 1SG E8 25U5M
FDMA, MRT SATCOM FDMA, MRT SATCOM
SUPPLY E5 92Y20
25B20 * 25B20 * ARMORER E4 92Y10
25L10 * 25L10 * NBC NCO E5 74D20
25U20
DATA SPT DATA SPT
25U10
25U20 25U10
94F10 RETRANS
25F10 25F10 25L10J2
MNT VEH
SMART-T SMART-T

EXTENSION SEC EXTENSION SEC NETOPS


25U20 25U20 25B10 E4
25U10 25U10 25B10 E3
25U10 25U10 250N W2
RETRANS RETRANS 25Q20 E5
25W40/D9 25Q10 E4
25D40
25D30
25C30 25C30 25F30
25C10 25C10 25F30
EPLRS ENM 25C10 EPLRS ENM 25C10 KU TDMA SATCOM
25S30
25B30
25B10
** SM CP SPT TEAM aka
25C20 25C20 25B10
* LAN-N-CAN
EPLRS GWY
25C10
EPLRS GWY
25C10
* Operates Help Desk at UA CP 1

Battle Command Training Center (BCTC) Fort Leavenworth, KS 66027-2346



 
  

6HFWLRQ±6RXUFHVDQG5HIHUHQFHV

&3,4$(-'%6'(.9:

)02SHUDWLRQDO7HUPVDQG*UDSKLFV6HSWHPEHU
)0,QWHOOLJHQFH0D\
)02SHUDWLRQV)HEUXDU\
)08UEDQ2SHUDWLRQV2FWREHU
)0&RPELQHG$UPV2SHUDWLRQVLQ8UEDQ7HUUDLQ)HEUXDU\

)0&RUGRQDQG6HDUFK0XOWL6HUYLFH7DFWLFV7HFKQLTXHVDQG
3URFHGXUHVIRU&RUGRQDQG6HDUFK2SHUDWLRQV$SULO
)06WDELOLW\2SHUDWLRQVDQG6XSSRUW2SHUDWLRQV)HEUXDU\
)07DFWLFV7HFKQLTXHVDQG3URFHGXUHVIRU)LHOG$UWLOOHU\
7DUJHW$FTXLVLWLRQ-XQH
)07DFWLFV7HFKQLTXHVDQG3URFHGXUHVIRU)LUH6XSSRUWIRUWKH
&RPELQHG$UPV&RPPDQGHU2FWREHU
)0,QIRUPDWLRQ2SHUDWLRQV'RFWULQH7DFWLFV7HFKQLTXHVDQG
3URFHGXUHV1RYHPEHU
)03K\VLFDO6HFXULW\-DQXDU\
)05HFRQQDLVVDQFH6TXDGURQ6HSWHPEHU
)07KH,QIDQWU\%DWWDOLRQ'HFHPEHU
)07DFWLFV-XO\
)07KH7DQNDQG0HFKDQL]HG,QIDQWU\%DWWDOLRQ7DVN)RUFH
-XQH
)07KH%ULJDGH&RPEDW7HDP$XJXVW
)0&RPEDW6HUYLFH6XSSRUW$XJXVW
)00XOWL6HUYLFH7DFWLFV7HFKQLTXHVDQG3URFHGXUHVIRU
7DFWLFDO&RQYR\2SHUDWLRQV0DUFK
)0$UP\3ODQQLQJDQG2UGHUV3URGXFWLRQ-DQXDU\
)0&RPSRVLWH5LVN0DQDJHPHQW$XJXVW
)07HUUDLQ$QDO\VLV-XO\
)00LVVLRQ&RPPDQG&RPPDQGDQG&RQWURORI$UP\)RUFHV
$XJXVW
)07DFWLFV7HFKQLTXHVDQG3URFHGXUHVIRUWKH7DUJHWLQJ
3URFHVV0D\
)07UDLQLQJWKH)RUFH2FWREHU
)0%DWWOH)RFXVHG7UDLQLQJ6HSWHPEHU
)0&RPEDW1HW5DGLR2SHUDWLRQV2FWREHU
)06LJQDO7DFWLFDO6DWHOOLWH&RPSDQ\6HSWHPEHU
)0&RPEDW1HW5DGLR2SHUDWLRQV2FWREHU

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  
)06LJQDO6XSSRUW(FKHORQV&RUSVDQG%HORZ (&% 
'HFHPEHU
)06LJQDO/HDGHUV*XLGH-XQH
)0&RPEDW&RPPXQLFDWLRQVZLWKLQWKH'LYLVLRQ +HDY\DQG
/LJKW $SULO
)00RELOH6XEVFULEHU(TXLSPHQW 06( 2SHUDWLRQV-XQH
)0&DYDOU\2SHUDWLRQV'HFHPEHU
)0/HJDO*XLGHIRU&RPPDQGHUV-DQXDU\
)0&ROOHFWLRQ0DQDJHPHQWDQG6\QFKURQL]DWLRQ3ODQQLQJ0DUFK

)07DFWLFV7HFKQLTXHVDQG3URFHGXUHVIRU5HFRQQDLVVDQFH
6XUYHLOODQFHDQG,QWHOOLJHQFH6XSSRUWWR&RXQWHUUHFRQQDLVVDQFH-XQH

)0,QWHOOLJHQFH2IILFHU¶V+DQGERRN0D\
)0,QWHOOLJHQFH3UHSDUDWLRQRIWKH%DWWOHILHOG-XO\
)05HFRQVWLWXWLRQ-DQXDU\
)0,7KH2SHUDWLRQV3URFHVV0DUFK

D/4%*#65(48'*4/%.

-3'HSDUWPHQWRI'HIHQVH'LFWLRQDU\RI0LOLWDU\DQG$VVRFLDWHG
7HUPV$SULO DVDPHQGHGWKURXJK2FWREHU 

4.8$(('%$/6./6&8$.

$UP\5HJXODWLRQ $5 ,QIRUPDWLRQ0DQDJHPHQW3UHSDULQJDQG
0DQDJLQJ&RUUHVSRQGHQFH
$57(30730LVVLRQ7UDLQLQJ3ODQIRUWKH6WU\NHU%ULJDGH&RPEDW
7HDP
$57(30730LVVLRQ7UDLQLQJ3ODQIRUWKH7DQNDQG0HFKDQL]HG
,QIDQWU\%DWWDOLRQ7DVN)RUFH
%DWWOH&RPPDQG7UDLQLQJ3URJUDP&7HDP:RUNVKRSV
&RPPDQGHU¶V%DWWOH6WDII+DQGERRN$5,5HVHDUFK3URGXFW
&$//+DQGERRN%ULJDGHDQG%DWWDOLRQ60'03+DQGERRN
-XO\
5%6WDII2IILFHU¶V+DQGERRN
6HOHFWHG8QLW7DFWLFDO6WDQGLQJ2SHUDWLQJ3URFHGXUHV
670HFKDQL]HG,QIDQWU\DQG$UPRU%DWWDOLRQ7DVN)RUFH7DFWLFDO
623
7KH$UP\6WDII2IILFHU¶V*XLGH

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

6HFWLRQ±$FURQ\PVDQG$EEUHYLDWLRQV

  $
$6±DVVLVWDQWRSHUDWLRQVRIILFHU 6 
$&±$UP\DLUVSDFHFRPPDQGDQGFRQWURO
$$±DYHQXH V RIDSSURDFK
$$±DVVHPEO\DUHD
$$5±DIWHUDFWLRQUHYLHZ
$%&6±$UP\%DWWOH&RPPDQG6\VWHP
$&±DLUVSDFHFRPPDQGDQGFRQWURO
$&±DFWLYHFRPSRQHQW
$&2±DLUVSDFHFRQWURORUGHU
$&7±DQDO\VLVDQGFRQWUROWHDP
$'±DLUGHIHQVH
$'$±DLUGHIHQVHDUWLOOHU\
$'2±DLUGHIHQVHRIILFHU
$'3±DXWRPDWLFGDWDSURFHVVLQJ
$)$7'6±$GYDQFHG)LHOG$UWLOOHU\7DFWLFDO'DWD6\VWHP $%&6 
$)&6±$UP\)DFLOLWLHV&RPSRQHQWV6\VWHP
$*0±DWWDFNJXLGDQFHPDWUL[
$,6±$XWRPDWHG,QIRUPDWLRQ6\VWHP
$.2±$UP\.QRZOHGJH2Q/LQH
$/2±DLUOLDLVRQRIILFHU
$/2&±DGPLQLVWUDWLYHDQGORJLVWLFV DGPLQORJ RSHUDWLRQVFHQWHU
$/6±DXWKRUL]HGVWRFNDJHOLVW
$0±DPSOLWXGHPRGXODWHG
$0':6±$LUDQG0LVVLOH'HIHQVH:RUNVWDWLRQ
$2±DUHDRIRSHUDWLRQV
$2(±$UP\RI([FHOOHQFH
$2,±DUHDRILQWHUHVW
$2,5±DUHD V RILQWHOOLJHQFHUHVSRQVLELOLW\
$25±DUHDRIUHVSRQVLELOLW\
$5±$UP\UHJXODWLRQ
$51*±$UP\1DWLRQDO*XDUG
$57(3±$UP\7UDLQLQJDQG(YDOXDWLRQ3URJUDP
$6$3±DVVRRQDVSRVVLEOH
$6$6±$OO6RXUFH$QDO\VLV6\VWHP $%&6 
$6$6/±$OO6RXUFH$QDO\VLV6\VWHP/LJKW $%&6 
$6/±DXWKRUL]HGVWRFNDJHOLVW
$7&&6±$UP\7DFWLFDO&RPPDQGDQG&RQWURO6\VWHP

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

  %
%&,6±EDWWOHILHOGFRPEDWLGHQWLILFDWLRQV\VWHP
%&6±%DWWOH&RPPDQG6HUYHU
%&6±%DWWOH&RPPDQG6XVWDLQPHQW6XSSRUW6\VWHP
%&7±EULJDGHFRPEDWWHDP
%&7&±%DWWOH&RPPDQG7UDLQLQJ&HQWHU
%'$±EDWWOHGDPDJHDVVHVVPHQW
%'$5±EDWWOHGDPDJHDVVHVVPHQWDQGUHSDLU
%'(±EULJDGH
%)7±%OXH)RUFH7UDFNHU $%&6 
%,&&±EDWWOHILHOGLQIRUPDWLRQFRRUGLQDWLRQ RUFRQWURO FHQWHU
%/8)±ERWWRPOLQHXSIURQW
%017±EHJLQQLQJPRUQLQJQDXWLFDOWZLOLJKW
%062±EULJDGHPHGLFDOVXSSRUWRIILFH
%1±EDWWDOLRQ
%2/7±EULJDGHRSHUDWLRQDOOHJDOWHDP
%26±EDWWOHILHOGRSHUDWLQJV\VWHP V  REVROHWHUHSODFHGE\:)) 
%3±EDWWOHSRVLWLRQ
%5,/±EDVHOLQHUHVRXUFHLWHPVOLVW
%6$±EULJDGHVXSSRUWDUHD
%6%±EULJDGHVXSSRUWEDWWDOLRQ
%60&±EULJDGHVXSSRUWPHGLFDOFRPSDQ\
%66±EULJDGHVXUJLFDOVHFWLRQ
%8%±EDWWOHXSGDWHEULHILQJ
 
&
&±FRPPDQGDQGFRQWURO
&3&±&RPPDQGDQG&RQWURO3HUVRQDO&RPSXWHU
&:±FRPPDQGDQGFRQWUROZDUIDUH
&±FRPPDQGFRQWURODQGFRPPXQLFDWLRQV
&±FRPPDQGFRQWUROFRPPXQLFDWLRQVDQGFRPSXWHUV
&,±FRPPDQGFRQWUROFRPPXQLFDWLRQVFRPSXWHUVDQGLQWHOOLJHQFH
&$±FRPEDWDVVHVVPHQWFLYLODIIDLUV
&$%±FRPELQHGDUPVEDWWDOLRQ
&$%6$±FRPELQHGDUPVEDWWDOLRQVXSSRUWDUHD
&$5±FRPELQHGDUPVUHKHDUVDO
&$6±FORVHDLUVXSSRUW
&$6(9$&±FDVXDOW\HYDFXDWLRQ
&%51±FKHPLFDOELRORJLFDOUDGLRORJLFDODQGQXFOHDU
&&,±FRQWUROOHGFU\SWRJUDSKLFLWHPV
&&,5±FRPPDQGHU¶VFULWLFDOLQWHOOLJHQFHUHTXLUHPHQWV
&'±FRPSDFWGLVN
&(±FRPPXQLFDWLRQVHOHFWURQLFV
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
&(2,±FRPPXQLFDWLRQVHOHFWURQLFVRSHUDWLQJLQVWUXFWLRQV
&+(02±FKHPLFDORIILFHU
&,±FRXQWHULQWHOOLJHQFH
&,&±FRPPDQGLQIRUPDWLRQFHQWHU
&,03±&RPPDQG,QIRUPDWLRQ0DQDJHPHQW3ODQ
&/±FODVV HV RIVXSSO\
&02±FLYLOPLOLWDU\RSHUDWLRQV
&15±&RPEDW1HW5DGLR
&2$±FRXUVH V RIDFWLRQ
&2(±FRQWHPSRUDU\RSHUDWLQJHQYLURQPHQW
&200(/±FRPPXQLFDWLRQVHOHFWURQLFV VHHDOVR&( 
&206(&±FRPPXQLFDWLRQVVHFXULW\
&22±FRPELQHGREVWDFOHRYHUOD\
&23±FRPPRQRSHUDWLRQDOSLFWXUH
&3±FRPPDQGSRVW
&31±FRPPDQGSRVWQHWZRUN
&50±FRPSRVLWHULVNPDQDJHPHQW
&60±FRPPDQGVHUJHDQWPDMRU
&65±FRQWUROOHGVXSSO\UDWH
&7'±&ROOHFWLYH7UDLQLQJ'LUHFWRUDWH)W/HDYHQZRUWK.6
&73±FRPPRQWDFWLFDOSLFWXUH 860&  VHHDOVR&23 

  '
'$±GHFLGHGHWHFWGHOLYHUDVVHVV PHWKRGRORJ\ 
'$±'HSDUWPHQWRIWKH$UP\
'$*5±'HIHQVH$GYDQFHG*OREDO3RVLWLRQLQJ6\VWHP *36 5HFHLYHU
'&3±GLJLWDOFRPPDQGSRVW
''$3±'LJLWDO'LDJQRVWLFVDQG3URJQRVWLF,QWHUIDFH
',0+56±'HIHQVH,QWHJUDWHG0LOLWDU\+XPDQ5HVRXUFHV6\VWHP
',9±GLYLVLRQ
',9$57<±GLYLVLRQDUWLOOHU\
'26±'HSDUWPHQWRI6WDWH
'3±GHFLVLRQSRLQW
'6±GLUHFWVXSSRUW
'67±GHFLVLRQVXSSRUWWHPSODWH
'7*±GDWHWLPHJURXS
'=±GURS]RQH

  (
($±HQJDJHPHQWDUHD V 
($%±HFKHORQVDERYHEULJDGH
($&±HFKHORQVDERYHFRUSV
(%&±HPEHGGHGEDWWOHFRPPDQG
(&&0±HOHFWURQLFFRXQWHUFRXQWHUPHDVXUH V 
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
(&0±HOHFWURQLFFRXQWHUPHDVXUH V 
(&2$±HQHP\FRXUVH V RIDFWLRQ
('&±H[WHUQDOGDWDEDVHFRRUGLQDWLRQ
((),±HVVHQWLDOHOHPHQW V RIIULHQGO\LQIRUPDWLRQ
((17±HDUO\HYHQLQJQDXWLFDOWZLOLJKW
()67±HVVHQWLDOILUHVXSSRUWWDVN V 
(07±(IIHFWV0DQDJHPHQW7RRO
(1&225'±HQJLQHHUFRRUGLQDWRU
(16,7±HQHP\VLWXDWLRQ UHSRUW 
(2%65(3±HQHP\REVHUYDWLRQUHSRUW UHSRUW 
(3%±HOHFWURQLFSUHSDUDWLRQRIWKHEDWWOHILHOG
(3/56±(QKDQFHG3RVLWLRQ/RFDWLRQ5HSRUWLQJ6\VWHP
(3:±HQHP\SULVRQHURIZDU
(70,±HOHFWURQLFWHFKQLFDOPDQXDOLQWHUIDFH
(9(17(03±HYHQWWHPSODWH
(:±HOHFWURQLFZDUIDUH
(:2±HOHFWURQLFZDUIDUHRIILFHU

  )
6*±ILUVWVHUJHDQW
)$±ILHOGDUWLOOHU\
)$$'&±)RUZDUG$UHD$LU'HIHQVH&RPPDQGDQG&RQWURO
)$$53±IRUZDUGDUHDDUPLQJDQGUHIXHOLQJSRLQW
)$&±IRUZDUGDLUFRQWUROOHU
)$'6&±IHDVLEOHDFFHSWDEOHGLVWLQJXLVKDEOHVXLWDEOHFRPSOHWH
)$6&$0±IDPLO\RIVFDWWHUDEOHPLQHV
)$63±ILHOGDUWLOOHU\VXSSRUWSODQ
)%&%±)RUFH;;,%DWWOH&RPPDQG%ULJDGHDQG%HORZ $%&6 
)&6±)XWXUH&RPEDW6\VWHPV
)'&±ILUHGLUHFWLRQFHQWHU
)(%$±IRUZDUGHGJHRIWKHEDWWOHDUHD
)(&±ILUHDQGHIIHFWVFHOO
)),5±IULHQGO\IRUFHVLQIRUPDWLRQUHTXLUHPHQW V 
),67±ILUHVXSSRUWWHDP
)/27±IRUZDUGOLQHRIRZQWURRSV
)0±ILHOGPDQXDO
)0±IUHTXHQF\PRGXODWLRQ UDGLRV 
)0,±ILHOGPDQXDOLQWHULP
)3)±)LQDO3URWHFWLYH)LUHV
)5$*2±IUDJPHQWDU\RUGHU
)6±ILUHVXSSRUW
)6&0±ILUHVXSSRUWFRRUGLQDWLRQPHDVXUH V 
)6(±ILUHVXSSRUWHOHPHQW
)6(0±ILUHVXSSRUWH[HFXWLRQPDWUL[
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
   
)62±ILUHVXSSRUWRIILFHU
)65±ILHOGVHUYLFHUHSUHVHQWDWLYH
)7/±IDUWDUJHWORFDWRU
)73±ILOHWUDQVIHUSURWRFRO
);;,±)RUFH;;,

  *
*&&6±*OREDO&RPPDQGDQG&RQWURO6\VWHP
*&66$±*OREDO&RPEDW6XSSRUW6\VWHP$UP\
*&0±JUDSKLFFRQWUROPHDVXUH V 
*&6±JURXQGFRQWUROVWDWLRQ
*.2±*XDUG.QRZOHGJH2Q/LQH
*36±*OREDO3RVLWLRQLQJ6\VWHP
*6±JHQHUDOVXSSRUW
*65±JURXQGVXUYHLOODQFHUDGDU
*65±JHQHUDOVXSSRUWUHLQIRUFLQJ

  +
+%&7±KHDY\EULJDGHFRPEDWWHDP
+(±KLJKH[SORVLYH
+(077±+HDY\([SDQGHG0RELOLW\7DFWLFDO7UXFN
+)±KLJKIUHTXHQF\
++&±KHDGTXDUWHUVDQGKHDGTXDUWHUVFRPSDQ\
++4±KLJKHUKHDGTXDUWHUV
+1±KRVWQDWLRQ
+16±KRVWQDWLRQVXSSRUW
+37±KLJKSD\RIIWDUJHW
+4±KHDGTXDUWHUV
+5±KXPDQUHVRXUFHV
+97±KLJKYDOXHWDUJHW
+97/±KLJKYDOXHWDUJHWOLVW

  ,
,$±LQIRUPDWLRQDVVXUDQFH
,$:±LQDFFRUGDQFHZLWK
,%&7±LQIDQWU\EULJDGHFRPEDWWHDP
,&/±LQWHOOLJHQFHFRRUGLQDWLRQOLQH
,&0±LPSURYHGFRQYHQWLRQDOPXQLWLRQV
,&:±LQFRRUGLQDWLRQZLWK
,('±LPSURYLVHGH[SORVLYHGHYLFH
,'±LGHQWLILFDWLRQ
,*±LQVSHFWRUJHQHUDO
,0±LQIRUPDWLRQPDQDJHPHQW
,0(76±,QWHJUDWHG0HWHRURORJLFDO6\VWHP
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
 ! 
,1)26<6±LQIRUPDWLRQV\VWHPV
,175(3±LQWHOOLJHQFHUHSRUW
,17680±LQWHOOLJHQFHVXPPDU\
,2±LQIRUPDWLRQRSHUDWLRQV
,3±LQWHUQHWSURWRFRO
,3%±LQWHOOLJHQFHSUHSDUDWLRQRIWKHEDWWOHILHOG
,5±LQIRUPDWLRQUHTXLUHPHQW V 
,5(±LQWHOOLJHQFHUXQQLQJHVWLPDWH
,65±LQWHOOLJHQFHVXUYHLOODQFHDQGUHFRQQDLVVDQFH
,7±LQIRUPDWLRQWHFKQRORJ\

  -
-$$7±MRLQWDLUDWWDFNWHDP
-$*±MXGJHDGYRFDWHJHQHUDO
-6($'±MRLQWVXSSUHVVLRQRIHQHP\DLUGHIHQVHV
-&'%±-RLQW&RPPRQ'DWDEDVH
-07.±-RLQW0DSSLQJ7RRO.LW
-11±MRLQWQHWZRUNQRGH
-67$56±-RLQW6XUYHLOODQFH7DUJHW$WWDFN5DGDU6\VWHP
-90)±-RLQW9DULDEOH0HVVDJH)RUPDW

.
.&±NQRZOHGJHFHQWHU
.,$±NLOOHGLQDFWLRQ
.,66±NHHSLWVLPSOHVROGLHU RUVXEVWLWXWH\RXURZQ 
.0±NLORPHWHU

  /
/$':±ORFDODLUGHIHQVHZDUQLQJ V 
/$1±ORFDODUHDQHWZRUN
/&±OLQHRIFRQWDFW
/'±OLQHRIGHSDUWXUH
/12±OLDLVRQRIILFHU
/2&±OLQH V RIFRPPXQLFDWLRQV
/26±OLQHRIVLJKW
/079±OLJKWZHLJKWPLOLWDU\W\SHYHKLFOH
/3%±ORJLVWLFVSUHSDUDWLRQRIWKHEDWWOHILHOG
/56±ORQJUDQJHVXUYHLOODQFH
/6'±ODUJHVFUHHQGLVSOD\
/7,29±ODWHVWWLPHLQIRUPDWLRQLVRIYDOXH
/=±ODQGLQJ]RQH

  0
0$5&±PDQSRZHU$UP\UHTXLUHPHQWVFULWHULD
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
 " 
0&22±PRGLILHGFRPELQHGREVWDFOHRYHUOD\
0&6±PRELOLW\FRXQWHUPRELOLW\DQGVXUYLYDELOLW\
0&6±0DQHXYHU&RQWURO6\VWHP $%&6 
0'/±0LVVLRQ'DWD/RDGHU
0'03±0LOLWDU\'HFLVLRQ0DNLQJ3URFHVV
0('(9$&±PHGLFDOHYDFXDWLRQ
0(7/±0LVVLRQ(VVHQWLDO7DVN/LVW
0(777&±PLVVLRQYDULDEOHVRIPLVVLRQHQHP\WHUUDLQWLPHDYDLODEOH
WURRSVDYDLODEOHDQGFLYLOLDQV
0,$±PLVVLQJLQDFWLRQ
02(±PHDVXUH V RIHIIHFWLYHQHVV
023±PHDVXUH V RISHUIRUPDQFH
0233±PLVVLRQRULHQWHGSURWHFWLYHSRVWXUH
03±PLOLWDU\SROLFH
06(±PRELOHVXEVFULEHUHTXLSPHQW
065±PDLQVXSSO\URXWH
072(±PRGLILHGWDEOHRIRUJDQL]DWLRQDQGHTXLSPHQW
073±0LVVLRQ7UDLQLQJ3ODQ
076±0RYHPHQW7UDFNLQJ6\VWHP
0:5±PRUDOHZHOIDUHDQGUHFUHDWLRQ

  1
1$,±QDPHGDUHD V RILQWHUHVW
1%&±QXFOHDUELRORJLFDODQGFKHPLFDO
1%&:56±1XFOHDU%LRORJLFDO&KHPLFDO:DUQLQJDQG5HSRUWLQJ
6\VWHP
1&2±QRQFRPPLVVLRQHGRIILFHU
1&2,&±QRQFRPPLVVLRQHGRIILFHULQFKDUJH
1&23'±1RQ&RPPLVVLRQHG2IILFHU3URIHVVLRQDO'HYHORSPHQW
1&6±QHWFRQWUROVWDWLRQ
1)$±QRILUHDUHD
1*2±QRQJRYHUQPHQWDORUJDQL]DWLRQ
1,0$±1DWLRQDO,PDJHU\DQG0DSSLQJ$JHQF\
10±QHWZRUNPDQDJHPHQW
1576±1HDU5HDO7LPH6HUYHU
17'5±1HDU7HUP'LJLWDO5DGLR

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

  2
2 ,±RSHUDWLRQVDQGLQWHOOLJHQFH
2&±REVHUYHUFRQWUROOHU
22±RQRUGHU PLVVLRQ 
2$.2&±REVHUYDWLRQDQGILHOGVRIILUHDYHQXHVRIDSSURDFKNH\
WHUUDLQREVWDFOHVDQGFRYHUDQGFRQFHDOPHQW
2%±RUGHURIEDWWOH
2%-±REMHFWLYH
2,&±RIILFHULQFKDUJH
23±REVHUYDWLRQSRVW
23&21±RSHUDWLRQDOFRQWURO
23'±RIILFHU¶VSURIHVVLRQDOGHYHORSPHQW
23)25±RSSRVLQJIRUFH V 
23/$1±RSHUDWLRQSODQ
2325'±RSHUDWLRQRUGHU
236(&±RSHUDWLRQDOVHFXULW\

  3
3$±SXEOLFDIIDLUV
3$2±SXEOLFDIIDLUVRIILFHU
3$&(±SULPDU\DOWHUQDWHFRQWLQJHQF\HPHUJHQF\
3$66±3XEOLVKDQG6XEVFULEH6HUYLFHV 0&6 
3%2±SURSHUW\ERRNRIILFHU
3,5±SULRULW\LQWHOOLJHQFHUHTXLUHPHQW V 
3/*5±3UHFLVLRQ/LJKWZHLJKW*OREDO3RVLWLRQLQJ6\VWHP5HFHLYHU
3//±SUHVFULEHGORDGOLVW
3/7±SODWRRQ
30±SURYRVWPDUVKDO
32&±SRLQWRIFRQWDFW
36<23±SV\FKRORJLFDORSHUDWLRQV

  5
5±UHLQIRUFLQJ
5&±5HVHUYHFRPSRQHQW
5'2±UDGDUGHSOR\PHQWRUGHU
5(&±UDGLRHOHFWURQLFFRPEDW
5(75$16±UHWUDQVPLVVLRQ
5)±UDGLRIUHTXHQF\
5),±UHTXHVW V IRULQIRUPDWLRQ
5,±UHOHYDQWLQIRUPDWLRQ
50±UHVRXUFHPDQDJHPHQW
52±UHSOHQLVKPHQWRSHUDWLRQV
52(±UXOHVRIHQJDJHPHQW
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
52,±UXOHVRILQWHUDFWLRQ
52=±UHVWULFWLYHRSHUDWLRQV]RQH
567$±UHFRQQDLVVDQFHVXUYHLOODQFHDQGWDUJHWDFTXLVLWLRQ
572±UDGLRWHOHSKRQHRSHUDWRU
5:6±5HPRWH:RUN6WDWLRQ $%&6 

  6
6±$VVLVWDQW&KLHIRI6WDII3HUVRQQHO SHUVRQQHORIILFHU 
6±$VVLVWDQW&KLHIRI6WDII,QWHOOLJHQFH LQWHOOLJHQFHRIILFHU 
6±$VVLVWDQW&KLHIRI6WDII2SHUDWLRQV RSHUDWLRQVRIILFHU 
6±$VVLVWDQW&KLHIRI6WDII/RJLVWLFV ORJLVWLFVRIILFHU 
6±$VVLVWDQW&KLHIRI6WDII&LYLO0LOLWDU\2SHUDWLRQV &02RIILFHU 
6±$VVLVWDQW&KLHIRI6WDII&2SHUDWLRQV &RSHUDWLRQVRIILFHU 
6±$VVLVWDQW&KLHIRI6WDII,QIRUPDWLRQ2SHUDWLRQV ,2RIILFHU 
6$±VLWXDWLRQDODZDUHQHVV
6$/87(±VL]HDFWLYLW\ORFDWLRQXQLWWLPHHTXLSPHQW
6$7&20±VDWHOOLWHFRPPXQLFDWLRQV
6%&7±6WU\NHUEULJDGHFRPEDWWHDP
6%)±VXSSRUWE\ILUH
6($'±VXSSUHVVLRQRIHQHP\DLUGHIHQVHV
6(&±VHFWLRQ
6*0±VHUJHDQWPDMRU
6,*,17±VLJQDOVLQWHOOLJHQFH
6,*6(&±VLJQDOVVHFXULW\
6,1&*$56±6LQJOH&KDQQHO*URXQGWR$LU5DGLR6\VWHP
6,5±VSHFLILFLQIRUPDWLRQUHTXHVW V 
6,75(3±VLWXDWLRQUHSRUW
6,77(03±VLWXDWLRQWHPSODWH
6-$±VWDIIMXGJHDGYRFDWH
60(±VXEMHFWPDWWHUH[SHUW
62,±VLJQDORSHUDWLQJLQVWUXFWLRQV
623±VWDQGLQJRSHUDWLQJSURFHGXUH V 
627$±6LJQDOV,QWHOOLJHQFH2SHUDWLRQDO7DVNLQJ$XWKRULW\
6265$±VXSSUHVVREVFXUHVHFXUHUHGXFHDVVDXOW
632±VXSSRUWRSHUDWLRQVRIILFHU
63275(3±6327UHSRUW
64/±VWUXFWXUHGTXHU\ODQJXDJH
661±6RFLDO6HFXULW\QXPEHU
673±6ROGLHUWUDLQLQJSXEOLFDWLRQ
68±VLWXDWLRQDOXQGHUVWDQGLQJ
6:2±VWDIIZHDWKHURIILFHU

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  

  7
7 (2±WUDLQLQJDQGHYDOXDWLRQRXWOLQH V 
7$&21±WDFWLFDOFRQWURO
7$&&3±WDFWLFDOFRPPDQGSRVW
7$&3±WDFWLFDODLUFRQWUROSDUW\
7$&5(3±WDFWLFDOUHSRUW
7$&52(±WDFWLFDOUXOHVRIHQJDJHPHQW
7$&623±WDFWLFDOVWDQGLQJRSHUDWLQJSURFHGXUHV VHHDOVR7623 
7$,±WDUJHWHGDUHD V RILQWHUHVW
7$9±WRWDODVVHWYLVLELOLW\
7&±WUDLQLQJFLUFXODU
7)±WDVNIRUFH
7,±WDFWLFDOLQWHOOLJHQFH
7,'$7±WDUJHWLQWHOOLJHQFHGDWD UHSRUW 
7/3±WURRSOHDGLQJSURFHGXUH V 
72±WDVNRUJDQL]DWLRQ
72&±WDFWLFDORSHUDWLRQVFHQWHU
73('±WDVNLQJSURFHVVLQJH[SORLWDWLRQDQGGLVVHPLQDWLRQ
73/±WLPHSKDVHOLQH V 
753±WDUJHWUHIHUHQFHSRLQW
760±WDUJHWV\QFKURQL]DWLRQPDWUL[
7623±WDFWLFDOVWDQGLQJRSHUDWLQJSURFHGXUHV VHHDOVR7$&623 
766±WDUJHWVHOHFWLRQVWDQGDUGV
773±WDFWLFV RUWLSV WHFKQLTXHVDQGSURFHGXUHV
79$±WDUJHWYDOXHDQDO\VLV

  8
8$6±XQPDQQHGDHULDOV\VWHP
8$9±XQPDQQHGDHULDOYHKLFOH
8+)±XOWUDKLJKIUHTXHQF\
8,&±XQLWLGHQWLILFDWLRQFRGH

8607)±8QLWHG6WDWHV0HVVDJH7H[W)RUPDW
872±XQLWWDVNRUJDQL]DWLRQ

9
9%,('±YHKLFOHERUQHLPSURYLVHGH[SORVLYHGHYLFH
9(:35,.±YHUEDOZDUQLQJH[KLELWZHDSRQZDUQLQJVKRWSHSSHU
VSUD\ULRWVWLFNLQMXUHZLWKILUHNLOOZLWKILUH
90)±9DULDEOH0HVVDJH)RUPDW
9R,3±YRLFHRYHULQWHUQHWSURWRFRO
97±YDULDEOHWLPH

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
  :
:$1±ZLGHDUHDQHWZRUN
:$512±ZDUQLQJRUGHU
:(0±ZHDWKHUHIIHFWVPDWUL[
:))±ZDUILJKWLQJIXQFWLRQ IRUPHUO\%26 
:,$±ZRXQGHGLQDFWLRQ
:0'±ZHDSRQ V RIPDVVGHVWUXFWLRQ
:3±ZKLWHSKRVSKRUXV

;
;2±H[HFXWLYHRIILFHU

6HFWLRQ±6HOHFWHG*ORVVDU\

$GYDQFHG)LHOG$UWLOOHU\7DFWLFDO'DWD6\VWHP $)$7'6 $)$7'6
SURYLGHVWKH$UP\DQG860&DXWRPDWHGILUHVXSSRUWFRPPDQGFRQWURO
DQGFRPPXQLFDWLRQVSRUWLRQRIWKH$%&6$)$7'6SURYLGHVLQWHJUDWHG
DXWRPDWHGVXSSRUWIRUSODQQLQJFRRUGLQDWLQJDQGFRQWUROOLQJDOOILUH
VXSSRUWDVVHWVVXFKDVILHOGDUWLOOHU\PRUWDUVFORVHDLUVXSSRUWQDYDO
JXQILUHDWWDFNKHOLFRSWHUDQGRIIHQVLYHHOHFWURQLFZDUIDUH,WPD\DOVR
SURYLGHIRUFRXQWHUILUHLQWHUGLFWLRQDQGVXSSUHVVLRQRIHQHP\WDUJHWV
:DUILJKWHU¶V*XLGHWR$UP\%DWWOH&RPPDQG6\VWHPV 

$OO6RXUFH$QDO\VLV6\VWHP/LJKW $6$6/ $6$6LVWKH$%&6
LQWHOOLJHQFHIXVLRQV\VWHPWKDWSURYLGHVDWLPHO\DFFXUDWHDQGUHOHYDQW
SLFWXUHRIWKHHQHP\VLWXDWLRQWRZDUILJKWHUV$6$6SURYLGHVJUDSKLF
UHSUHVHQWDWLRQVRIWKHHQHP\VLWXDWLRQWR$%&6,WSURYLGHVFRPEDWOHDGHUV
DOOVRXUFHLQWHOOLJHQFHWRVXSSRUWYLVXDOL]DWLRQRIWKHEDWWOHILHOG
:DUILJKWHU¶V*XLGHWR$UP\EDWWOH&RPPDQG6\VWHPV 

$QQH[±2QHRIIRXUFDWHJRULHVRIDWWDFKPHQWVXVHGDVLQIRUPDWLRQ
PDQDJHPHQWWRROVWRVLPSOLI\RUGHUVE\SURYLGLQJDVWUXFWXUHIRU
RUJDQL]LQJLQIRUPDWLRQ )0 

$UHDRI,QIOXHQFH MRLQW $JHRJUDSKLFDODUHDZKHUHLQDFRPPDQGHULV
GLUHFWO\FDSDEOHRILQIOXHQFLQJRSHUDWLRQVE\PDQHXYHURUILUHVXSSRUW
V\VWHPVQRUPDOO\XQGHUWKHFRPPDQGHU¶VFRPPDQGRUFRQWURO -3 

$UHDRI,QWHUHVW $2,  MRLQW 7KDWDUHDRIFRQFHUQWRWKHFRPPDQGHU
LQFOXGLQJWKHDUHDRILQIOXHQFHDUHDVDGMDFHQWWKHUHWRDQGH[WHQGLQJLQWR
HQHP\WHUULWRU\WRWKHREMHFWLYHVRIFXUUHQWRUSODQQHGRSHUDWLRQV7KLV
DUHDDOVRLQFOXGHVDUHDVRFFXSLHGE\HQHP\IRUFHVZKRFRXOGMHRSDUGL]H
WKHDFFRPSOLVKPHQWRIWKHPLVVLRQ -3 

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
$UHDRI2SHUDWLRQV $2  MRLQW $QRSHUDWLRQDODUHDGHILQHGE\WKH
MRLQWIRUFHFRPPDQGHUIRUODQGDQGPDULWLPHIRUFHV$UHDVRIRSHUDWLRQV
GRQRWW\SLFDOO\HQFRPSDVVWKHHQWLUHRSHUDWLRQDODUHDRIWKHMRLQWIRUFH
FRPPDQGHUEXWVKRXOGEHODUJHHQRXJKIRUFRPSRQHQWFRPPDQGHUVWR
DFFRPSOLVKWKHLUPLVVLRQVDQGSURWHFWWKHLUIRUFHV -3 

$UHDRI5HVSRQVLELOLW\ $25 7KHJHRJUDSKLFDODUHDDVVRFLDWHGZLWKD
FRPEDWDQWFRPPDQGZLWKLQZKLFKDFRPEDWDQWFRPPDQGHUKDVDXWKRULW\
WRSODQDQGFRQGXFWRSHUDWLRQV )0 

$UHD5HFRQQDLVVDQFH$IRUPRIUHFRQQDLVVDQFHRSHUDWLRQVWKDWLVD
GLUHFWHGHIIRUWWRREWDLQGHWDLOHGLQIRUPDWLRQFRQFHUQLQJWKHWHUUDLQRU
HQHP\DFWLYLW\ZLWKLQDSUHVFULEHGDUHD )0 

$UHD6HFXULW\$IRUPRIVHFXULW\RSHUDWLRQVFRQGXFWHGWRSURWHFW
IULHQGO\IRUFHVLQVWDOODWLRQURXWHVDQGDFWLRQVZLWKLQDVSHFLILFDUHD )0
 

$VVHVVPHQW $UP\ 7KHFRQWLQXRXVPRQLWRULQJDQGHYDOXDWLRQRIWKH
FXUUHQWVLWXDWLRQSDUWLFXODUO\WKHHQHP\DQGSURJUHVVRIDQRSHUDWLRQ )0
 

%DWWOH&DSWDLQ7KHVKLIWRIILFHULQFKDUJHZLWKLQD&3DVVRFLDWHGE\
SRVLWLRQDQGQRWUDQN7KHEDWWOHFDSWDLQLVORFDWHGLQWKH2SHUDWLRQV
6HFWLRQRID&3DQGRYHUVHHVWKHFRQGXFWRI&3RSHUDWLRQVGXULQJKLVVKLIW
7KHEDWWOHFDSWDLQHQVXUHVWKDWUHOHYDQWLQIRUPDWLRQLVJLYHQWRGHFLVLRQ
PDNHUVDQGZRUNVFORVHO\ZLWKDOOPHPEHUVRIWKHFRPPDQGJURXSDQG
VWDII )0 

%DWWOH&RPPDQG7KHDUWDQGVFLHQFHRIXQGHUVWDQGLQJYLVXDOL]LQJ
GHVFULELQJGLUHFWLQJOHDGLQJDQGDVVHVVLQJIRUFHVWRLPSRVHWKH
FRPPDQGHU¶VZLOORQDKRVWLOHWKLQNLQJDQGDGDSWLYHHQHP\%DWWOH
FRPPDQGDSSOLHVOHDGHUVKLSWRWUDQVODWHGHFLVLRQVLQWRDFWLRQV²E\
V\QFKURQL]LQJIRUFHVDQGZDUILJKWLQJIXQFWLRQVLQWLPHVSDFHDQG
SXUSRVH²WRDFFRPSOLVKPLVVLRQV )0 

%DWWOH&RPPDQG6XVWDLQPHQW6XSSRUW6\VWHP %&6 %&6LVWKH
$%&6V\VWHPUHVSRQVLEOHIRUPDQDJLQJORJLVWLFVDQGSHUVRQQHORSHUDWLRQV
%&6DQG)%&%DUHWKHFRPEDWPXOWLSOLHUVWKDWSURYLGHORJLVWLFVVWDWXV
DQGLQIRUPDWLRQLQVXSSRUWRIVXVWDLQPHQWSODQQLQJDQGH[HFXWLRQDW
EULJDGH%&6DOLJQVVXVWDLQPHQWLQWUDQVLWDQGIRUFHGDWDWRDLG
FRPPDQGHUVLQPDNLQJFULWLFDOGHFLVLRQVDQGSURYLGHVRSHUDWRUVWKH
FRPSOHWHORJLVWLFVSLFWXUHLQWKHIRUPRIWKH³5XQQLQJ(VWLPDWH´
:DUILJKWHU¶V*XLGHWR$UP\EDWWOH&RPPDQG6\VWHPV 
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  

%DWWOH'ULOO$FROOHFWLYHDFWLRQH[HFXWHGE\DSODWRRQRUVPDOOHUHOHPHQW
ZLWKRXWWKHDSSOLFDWLRQRIDGHOLEHUDWHGHFLVLRQPDNLQJSURFHVV$EDWWOH
GULOODFWLRQLVLQLWLDWHGRQFXHYLDDQHQHP\DFWLRQRUVLPSO\DOHDGHU
VRUGHU
DQGLVDWUDLQHGUHVSRQVHWRWKHJLYHQVWLPXOXVWKDWUHTXLUHVPLQLPXP
OHDGHURUGHUVWRDFFRPSOLVK $57(3' 

%DWWOH8SGDWH%ULHILQJ %8% ±%ULHILQJDWZKLFKWKHVWDIISURYLGH
VHFWLRQXSGDWHVRQLPSRUWDQWRFFXUUHQFHVIRUWKHSUHFHGLQJKRXUVDQG
GLVFXVVSODQVDQGHYHQWVZKLFKDUHWRWDNHSODFHLQWKHVXEVHTXHQWWR
KRXUV )0 

%HSUHSDUHG %3 0LVVLRQ$PLVVLRQDVVLJQHGWRDXQLWWKDWPLJKWEH
H[HFXWHG,WLVJHQHUDOO\DFRQWLQJHQF\PLVVLRQZKLFKZLOOEHH[HFXWHG
EHFDXVHVRPHWKLQJSODQQHGKDVRUKDVQRWEHHQVXFFHVVIXO,QSODQQLQJ
SULRULWLHVLWLVSODQQHGDIWHUDQ\RQRUGHUPLVVLRQV )0 

%UDQFK$FRQWLQJHQF\SODQRU&2$ DQRSWLRQEXLOWLQWRWKHEDVLFSODQ
RU&2$ IRUFKDQJLQJWKHPLVVLRQGLVSRVLWLRQRULHQWDWLRQRUGLUHFWLRQRI
PRYHPHQWRIWKHIRUFHWRDLGVXFFHVVRIWKHFXUUHQWRSHUDWLRQEDVHGRQ
DQWLFLSDWHGHYHQWVRSSRUWXQLWLHVRUGLVUXSWLRQVFDXVHGE\HQHP\DFWLRQV
$UP\IRUFHVSUHSDUHEUDQFKHVWRH[SORLWVXFFHVVDQGRSSRUWXQLWLHVRUWR
FRXQWHUGLVUXSWLRQVFDXVHGE\HQHP\DFWLRQV )0 

&HQWHURI*UDYLW\ &2*  MRLQW 7KHVRXUFHRISRZHUWKDWSURYLGHV
PRUDORUSK\VLFDOVWUHQJWKIUHHGRPRIDFWLRQRUZLOOWRDFW -3 

&LYLO&RQVLGHUDWLRQV7KHLQIOXHQFHRIPDQPDGHLQIUDVWUXFWXUHFLYLOLDQ
LQVWLWXWLRQVDQGDWWLWXGHVDQGDFWLYLWLHVRIWKHFLYLOLDQOHDGHUVSRSXODWLRQV
DQGRUJDQL]DWLRQVZLWKLQDQDUHDRIRSHUDWLRQVRQWKHFRQGXFWRIPLOLWDU\
RSHUDWLRQV )0 

&LYLO0LOLWDU\2SHUDWLRQV &02 7KHDFWLYLWLHVRIDFRPPDQGHUWKDW
HVWDEOLVKPDLQWDLQLQIOXHQFHRUH[SORLWUHODWLRQVEHWZHHQPLOLWDU\IRUFHV
JRYHUQPHQWDODQGQRQJRYHUQPHQWDOFLYLOLDQRUJDQL]DWLRQVDQGDXWKRULWLHV
DQGWKHFLYLOLDQSRSXODFHLQDIULHQGO\QHXWUDORUKRVWLOHRSHUDWLRQDODUHD
LQRUGHUWRIDFLOLWDWHPLOLWDU\RSHUDWLRQVWRFRQVROLGDWHDQGDFKLHYH86
REMHFWLYHV&LYLOPLOLWDU\RSHUDWLRQVPD\LQFOXGHSHUIRUPDQFHE\PLOLWDU\
IRUFHVRIDFWLYLWLHVDQGIXQFWLRQVQRUPDOO\WKHUHVSRQVLELOLW\RIWKHORFDO
UHJLRQDORUQDWLRQDOJRYHUQPHQW7KHVHDFWLYLWLHVPD\RFFXUSULRUWR
GXULQJRUVXEVHTXHQWWRRWKHUPLOLWDU\DFWLRQV7KH\PD\DOVRRFFXULI
GLUHFWHGLQWKHDEVHQFHRIRWKHUPLOLWDU\RSHUDWLRQV&LYLOPLOLWDU\
RSHUDWLRQVPD\EHSHUIRUPHGE\GHVLJQDWHGFLYLODIIDLUVE\RWKHUPLOLWDU\
IRUFHRUE\DFRPELQDWLRQRIFLYLODIIDLUVDQGRWKHUIRUFHV -3 
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  

&2$6WDWHPHQW7KH&2$VWDWHPHQWFOHDUO\SRUWUD\VKRZWKHXQLWZLOO
DFFRPSOLVKWKHPLVVLRQDQGH[SODLQVWKHFRQFHSWRIRSHUDWLRQV )0 

&2$6NHWFK7KH&2$VNHWFKSURYLGHVDSLFWXUHRIWKHPDQHXYHUDVSHFWV
RIWKHFRQFHSWRIRSHUDWLRQV )0 

&ROODERUDWLYH3ODQQLQJ7KHUHDOWLPHLQWHUDFWLRQDPRQJFRPPDQGHUV
DQGVWDIIVDWWZRRUPRUHHFKHORQVGHYHORSLQJSODQVIRUDVLQJOHRSHUDWLRQ
)0 

&ROODWHUDO'DPDJH8QLQWHQWLRQDORULQFLGHQWDOLQMXU\RUGDPDJHWR
SHUVRQVRUREMHFWVWKDWZRXOGQRWEHODZIXOPLOLWDU\WDUJHWVLQWKH
FLUFXPVWDQFHVUXOLQJDWWKHWLPH6XFKGDPDJHLVQRWXQODZIXOVRORQJDVLW
LVQRWH[FHVVLYHLQOLJKWRIWKHRYHUDOOPLOLWDU\DGYDQWDJHDQWLFLSDWHGIURP
WKHDWWDFN )0 

&ROOHFWLRQ3ODQ$SODQIRUFROOHFWLQJLQIRUPDWLRQIURPDOODYDLODEOH
VRXUFHVWRPHHWLQWHOOLJHQFHUHTXLUHPHQWVDQGIRUWUDQVIRUPLQJWKRVH
UHTXLUHPHQWVLQWRRUGHUVDQGUHTXHVWVWRDSSURSULDWHDJHQFLHV1RWHWKH
$UP\WHUPLV,65 )0 

&RPEDW,QWHOOLJHQFH7KDWNQRZOHGJHRIWKHHQHP\ZHDWKHUDQG
JHRJUDSKLFDOIHDWXUHVUHTXLUHGE\DFRPPDQGHULQWKHSODQQLQJDQGFRQGXFW
RIFRPEDWRSHUDWLRQV )0 

&RPELQHG$UPV±7KHV\QFKURQL]HGDQGVLPXOWDQHRXVDSSOLFDWLRQRIWKH
HOHPHQWVRIFRPEDWSRZHU²WRDFKLHYHDQHIIHFWJUHDWHUWKDQLIHDFK
HOHPHQWRIFRPEDWSRZHUZDVXVHGVHSDUDWHO\RUVHTXHQWLDOO\ )0 

&RPELQHG$UPV%DWWDOLRQ &$% ±$%1FRQVLVWLQJRIWZRRUPRUH
DUPVPXWXDOO\VXSSRUWLQJRQHDQRWKHUXVXDOO\FRQVLVWLQJRILQIDQWU\
DUPRUFDYDOU\DYLDWLRQILHOGDUWLOOHU\DLUGHIHQVHDUWLOOHU\DQGHQJLQHHUV
6HH)0IRUIXUWKHULQIRUPDWLRQ )0 

&RPELQHG$UPV5HKHDUVDO &$5 7KHPDQHXYHUXQLW+4QRUPDOO\
FRQGXFWVWKHFRPELQHGDUPVUHKHDUVDO &$5 DQGLWLVSHUIRUPHGDIWHU
VXERUGLQDWHXQLWVKDYHLVVXHGWKHLU2325'7KHUHKHDUVDOHQVXUHVWKDW
VXERUGLQDWHSODQVDUHV\QFKURQL]HGZLWKWKRVHRIRWKHUXQLWVDQGWKDWWKH
SODQVDFKLHYHWKHLQWHQWRIWKHKLJKHUFRPPDQGHU$&$5LVSDUWLFXODUO\
LPSRUWDQWZKHQSUHSDULQJIRUDFRPSOH[EUHDFKLQJRSHUDWLRQ,WLVYHU\
GLIILFXOWWRV\QFKURQL]HWKHDFWLRQVRIDOOWKHXQLWVLQYROYHGLQWKH
RSHUDWLRQ$WDPLQLPXPWKHIROORZLQJVKRXOGEHDGGUHVVHGGXULQJD
&$5
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
   
ƒ 7KHODWHVWLQIRUPDWLRQFRQFHUQLQJWKHHQHP\REVWDFOHV\VWHP
ƒ $FWLRQVWKDWWKH++4LVWDNLQJWRDVVLVWWKHEUHDFKLQJRSHUDWLRQ
ƒ 7KHWLPHDYDLODEOHIRUHPSODFLQJVPRNHDQGDFWLYDWLQJ&ULWLFDO
)ULHQGO\=RQHV &)=  LQFOXGHORFDWLRQDQGGXUDWLRQ 
ƒ 7KHFULWHULDIRUOLIWLQJVKLIWLQJGLUHFWDQGLQGLUHFWILUHV
ƒ 7KHFRPPLWPHQWFULWHULDIRUWKHEUHDFKIRUFH
ƒ 7KHPHWKRGXVHGWRUHGXFHWKHREVWDFOHV\VWHP
ƒ 7KHPDUNLQJWREHXVHG2QHWHFKQLTXHLVWRKDYHDPDUNHGODQHQHDU
WKHUHKHDUVDOVLWH$OOSDUWLFLSDQWVVKRXOGYLHZDQGGULYHZDON
WKURXJKWKHPDUNHGODQHZKHQDUULYLQJDWRUGHSDUWLQJIURPWKH
UHKHDUVDOVLWH7KHPDUNLQJV\VWHPVKRXOGDOVREHVKRZQDWVXSSRUW
UHKHDUVDOVFRQGXFWHGE\VXVWDLQPHQWHOHPHQWV
ƒ 7KHFULWHULDDQGVLJQDOVIRUWKHDVVDXOWIRUFHWREHJLQPRYLQJWR
FUHDWHGODQHV )0 

&RPELQHG2EVWDFOH2YHUOD\ &22 ±$QRYHUOD\FUHDWHGDVDUHVXOWRI
WHUUDLQDQGZHDWKHUDQDO\VLVE\WKHHQJLQHHULQJVHFWLRQ$&22ZLOO
LQFOXGHDUHDVRI1RJR6ORZJRZDWHUREVWDFOHVPDQPDGHREVWDFOHV
YHJHWDWLRQKRUL]RQWDOOLQHRIVLJKWDQGSHUFHQWVORSH7KH&22LVXVHGWR
FUHDWHWKH0RGLILHG&RPELQHG2EVWDFOHV2YHUOD\ 0&22 ZKLFK
SURYLGHVDFRPSOHWHWHUUDLQSLFWXUH )0 

&RPPDQGHU¶V&ULWLFDO,QIRUPDWLRQ5HTXLUHPHQWV &&,5  MRLQW $Q
LQIRUPDWLRQUHTXLUHPHQWLGHQWLILHGE\WKHFRPPDQGHUDVEHLQJFULWLFDOWR
IDFLOLWDWLQJWLPHO\GHFLVLRQPDNLQJ7KHWZRNH\HOHPHQWVDUHIULHQGO\
IRUFHLQIRUPDWLRQUHTXLUHPHQWVDQGSULRULW\LQWHOOLJHQFHUHTXLUHPHQWV -3
 

&RPPDQGHU¶V,QWHQW $UP\ $FOHDUFRQFLVHVWDWHPHQWRIZKDWWKH
IRUFHPXVWGRDQGWKHFRQGLWLRQVWKHIRUFHPXVWHVWDEOLVKZLWKUHVSHFWWR
WKHHQHP\WHUUDLQDQGFLYLOFRQVLGHUDWLRQVWKDWUHSUHVHQWWKHGHVLUHGHQG
VWDWH )0 

&RPPDQGHU¶V3ODQQLQJ*XLGDQFH&RPPDQGHUVGHYHORSSODQQLQJ
JXLGDQFHIURPWKHLUYLVXDOL]DWLRQ3ODQQLQJJXLGDQFHPD\EHEURDGRU
GHWDLOHGDVFLUFXPVWDQFHVUHTXLUH+RZHYHULWPXVWFRQYH\WRWKHVWDIIWKH
HVVHQFHRIWKHFRPPDQGHU¶VYLVXDOL]DWLRQ )0 

&RPPDQGHU¶V9LVXDOL]DWLRQ7KHPHQWDOSURFHVVRIGHYHORSLQJ
VLWXDWLRQDOXQGHUVWDQGLQJGHWHUPLQLQJDGHVLUHGHQGVWDWHDQGHQYLVLRQLQJ

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
 ! 
WKHEURDGVHTXHQFHRIHYHQWVE\ZKLFKWKHIRUFHZLOODFKLHYHWKDWHQG
VWDWH )0 

&RPPRQ2SHUDWLRQDO3LFWXUH &23  $UP\ $VLQJOHGLVSOD\RI
UHOHYDQWLQIRUPDWLRQZLWKLQDFRPPDQGHU¶VDUHDRILQWHUHVWWDLORUHGWRWKH
XVHU¶VUHTXLUHPHQWVDQGEDVHGRQFRPPRQGDWDDQGLQIRUPDWLRQVKDUHGE\
PRUHWKDQRQHFRPPDQG )0 

&RQILUPDWLRQ%ULHI$EULHILQJVXERUGLQDWHOHDGHUVJLYHWRWKHKLJKHU
FRPPDQGHULPPHGLDWHO\DIWHUWKHRSHUDWLRQRUGHULVJLYHQ,WLVWKHLU
XQGHUVWDQGLQJRIKLVLQWHQWWKHLUVSHFLILFWDVNVDQGWKHUHODWLRQVKLS
EHWZHHQWKHLUPLVVLRQDQGWKHRWKHUXQLWVLQWKHRSHUDWLRQ )0 

&RQFHSWRI2SHUDWLRQV $UP\ $VWDWHPHQWWKDWGLUHFWVWKHPDQQHULQ
ZKLFKVXERUGLQDWHXQLWVFRRSHUDWHWRDFFRPSOLVKWKHPLVVLRQDQG
HVWDEOLVKHVWKHVHTXHQFHRIDFWLRQVWKHIRUFHZLOOXVHWRDFKLHYHWKHHQG
VWDWH,WLVQRUPDOO\H[SUHVVHGLQWHUPVRIGHFLVLYHVKDSLQJDQGVXVWDLQLQJ
RSHUDWLRQV )0 

&RQVWUDLQW$UHVWULFWLRQSODFHGRQWKHFRPPDQGE\DKLJKHUFRPPDQG
$FRQVWUDLQWGLFWDWHVDQDFWLRQRULQDFWLRQWKXVUHVWULFWLQJWKHIUHHGRPRI
DFWLRQDVXERUGLQDWHFRPPDQGHUKDVIRUSODQQLQJ )0 

&RQWURO0HDVXUH$PHDQVRIUHJXODWLQJIRUFHVRUZDUILJKWLQJIXQFWLRQV
)0 

&RXUVHRI$FWLRQ &2$ ±  $Q\VHTXHQFHRIDFWLYLWLHVWKDWDQ
LQGLYLGXDORUDXQLWPD\IROORZ  $SRVVLEOHSODQRSHQWRDQLQGLYLGXDO
RUDFRPPDQGHUZKLFKZRXOGDFFRPSOLVKRULVUHODWHGWRWKH
DFFRPSOLVKPHQWRIDPLVVLRQ  7KHVFKHPHDGRSWHGWRDFFRPSOLVKDMRE
RUPLVVLRQ  $OLQHRIFRQGXFWLQDQHQJDJHPHQW  $SURGXFWRIWKH
-RLQW2SHUDWLRQ3ODQQLQJDQG([HFXWLRQV6\VWHPFRQFHSWGHYHORSPHQW
SKDVH -3 

&ULWHULDRI6XFFHVV,QIRUPDWLRQUHTXLUHPHQWVGHYHORSHGGXULQJWKH
RSHUDWLRQVSURFHVVWKDWPHDVXUHVWKHGHJUHHRIVXFFHVVLQDFFRPSOLVKLQJ
WKHXQLW¶VPLVVLRQ7KH\DUHQRUPDOO\H[SUHVVHGDVHLWKHUDQH[SOLFLW
HYDOXDWLRQRIWKHSUHVHQWVLWXDWLRQRUIRUHFDVWRIWKHGHJUHHRIPLVVLRQ
DFFRPSOLVKPHQW )0 

'HFHSWLRQ7KRVHPHDVXUHVGHVLJQHGWRPLVOHDGWKHHQHP\E\
PDQLSXODWLRQGLVWRUWLRQRUIDOVLILFDWLRQRIHYLGHQFHWRLQGXFHWKHHQHP\WR
UHDFWLQDPDQQHUSUHMXGLFLDOWRWKHHQHP\¶VLQWHUHVWV )0 

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
 " 
'HFLVLRQ3RLQW '3 $QHYHQWDUHDRUSRLQWLQWKHRSHUDWLRQDO
HQYLURQPHQWZKHUHDQGZKHQWKHIULHQGO\FRPPDQGHUZLOOPDNHDFULWLFDO
GHFLVLRQ )0 

'HFLVLRQ6XSSRUW0DWUL[ '60 $QDLGXVHGE\WKHFRPPDQGHUDQG
VWDIIWRPDNHEDWWOHILHOGGHFLVLRQV,WLVDVWDIISURGXFWRIWKHZDUJDPLQJ
SURFHVVZKLFKOLVWVWKHGHFLVLRQSRLQWORFDWLRQRIWKHGHFLVLRQSRLQWWKH
FULWHULDWREHHYDOXDWHGDWWKHSRLQWRIGHFLVLRQWKHDFWLRQRURSHUDWLRQVWR
RFFXUDWWKHGHFLVLRQSRLQWDQGWKHXQLWRUHOHPHQWWKDWLVWRDFWDQGKDV
UHVSRQVLELOLW\WRREVHUYHDQGUHSRUWWKHLQIRUPDWLRQDIIHFWLQJWKHFULWHULD
IRUWKHGHFLVLRQ )0 

'HFLVLRQ6XSSRUW7HPSODWH '67 ±$JUDSKLFUHFRUGRIZDUJDPLQJ7KH
'67GHSLFWVGHFLVLRQSRLQWVWLPHOLQHVDVVRFLDWHGZLWKWKHPRYHPHQWRI
IRUFHVDQGWKHIORZRIWKHRSHUDWLRQDQGRWKHUNH\LWHPVRILQIRUPDWLRQ
UHTXLUHGWRH[HFXWHDVSHFLILFIULHQGO\&2$$VWDIISURGXFWLQLWLDOO\XVHG
LQWKHZDUJDPLQJSURFHVVZKLFKJUDSKLFDOO\UHSUHVHQWVWKHGHFLVLRQSRLQWV
DQGSURMHFWHGVLWXDWLRQVDQGLQGLFDWHVZKHQZKHUHDQGXQGHUZKDW
FRQGLWLRQVDGHFLVLRQLVPRVWOLNHO\WREHUHTXLUHGWRLQLWLDWHDVSHFLILF
DFWLYLW\ VXFKDVDEUDQFKRUVHTXHO RUHYHQW VXFKDVOLIWLQJRUVKLIWLQJRI
ILUHV  )0 

'HFLVLYH2SHUDWLRQ7KHRSHUDWLRQWKDWGLUHFWO\DFFRPSOLVKHVWKH
PLVVLRQ,WGHWHUPLQHVWKHRXWFRPHRIDPDMRURSHUDWLRQEDWWOHRU
HQJDJHPHQW7KHGHFLVLYHRSHUDWLRQLVWKHIRFDOSRLQWDURXQGZKLFK
FRPPDQGHUVGHVLJQWKHHQWLUHRSHUDWLRQ )0 

'HFLVLYH3RLQW$JHRJUDSKLFSODFHVSHFLILFNH\HYHQWFULWLFDOV\VWHP
RUIXQFWLRQWKDWDOORZVFRPPDQGHUVWRJDLQDPDUNHGDGYDQWDJHRYHUDQ
HQHP\DQGJUHDWO\LQIOXHQFHWKHRXWFRPHRIDQDWWDFN6HHDOVRFHQWHUVRI
JUDYLW\ -3 

'RFWULQDO7HPSODWH$PRGHOEDVHGRQNQRZQRUSRVWXODWHGDGYHUVDU\
GRFWULQH'RFWULQDOWHPSODWHVLOOXVWUDWHWKHGLVSRVLWLRQDQGDFWLYLW\RI
DGYHUVDU\IRUFHVDQGDVVHWVFRQGXFWLQJDSDUWLFXODURSHUDWLRQXQFRQVWUDLQHG
E\WKHHIIHFWVRIWKHRSHUDWLRQDOHQYLURQPHQW7KH\UHSUHVHQWWKH
DSSOLFDWLRQRIDGYHUVDU\GRFWULQHXQGHULGHDOFRQGLWLRQV,GHDOO\GRFWULQDO
WHPSODWHVGHSLFWWKHWKUHDW¶VQRUPDORUJDQL]DWLRQIRUFRPEDWIURQWDJHV
GHSWKVERXQGDULHVDQGRWKHUFRQWUROPHDVXUHVDVVHWVDYDLODEOHIURPRWKHU
FRPPDQGVREMHFWLYHGHSWKVHQJDJHPHQWDUHDVEDWWOHSRVLWLRQVDQGVR
IRUWK )0 

(OHFWURQLF3UHSDUDWLRQRIWKH%DWWOHILHOG (3% ±$V\VWHPDWLFDSSURDFK
WRGHWHUPLQHWKURXJK6,*,17DQG(OHFWURQLF:DUIDUH6XSSRUW (6 WKH
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
HFKHORQVDQGGLVSRVLWLRQVRIWKHWKUHDWWKURXJKWKHHOHFWURPDJQHWLF
VWUXFWXUHRIWKHWDUJHW$ILYHVWHSSURFHVVLVHPSOR\HGWRFUHDWHDGDWDEDVH
DVGHILQHGEHORZ
ƒ ,GHQWLILFDWLRQRIH[SHFWHGHOHFWURQLFVLJQDWXUHV
ƒ (YDOXDWLRQRIFXUUHQWHOHFWURQLFHQYLURQPHQW
ƒ &RPSDULVRQRIH[SHFWHGVLWXDWLRQZLWKFXUUHQWVLWXDWLRQ
ƒ 3UHSDUDWLRQRI6,*,17(:WHPSODWHV
ƒ ,QWHJUDWLRQRI6,*,17(:WHPSODWHVZLWKDOOVRXUFHLQWHOOLJHQFH

7KHUHVXOWRIWKH(3%LVWKHLGHQWLILFDWLRQRIWDUJHWVWKDWDUHLPSRUWDQWWR
WKHHQHP\
VGHIHQVLYHRSHUDWLRQDQGWKDWFDQEHGHJUDGHGZLWKDYDLODEOH
(:DVVHWV )0VDQG 

(OHFWURQLF:DUIDUH (: $Q\PLOLWDU\DFWLRQLQYROYLQJWKHXVHRI
HOHFWURPDJQHWLFDQGGLUHFWHGHQHUJ\WRFRQWUROWKHHOHFWURPDJQHWLF
VSHFWUXPRUWRDWWDFNWKHHQHP\7KHWKUHHPDMRUVXEGLYLVLRQVZLWKLQ(:
DUH(OHFWURQLF$WWDFN ($ (OHFWURQLF3URWHFWLRQ (3 DQG(OHFWURQLF
:DUIDUH6XSSRUW (6 6HHDOVR)0IRUIXUWKHULQIRUPDWLRQ )0
 

(OHFWURQLF$WWDFN ($ 7KDWGLYLVLRQRI(:LQYROYLQJWKHXVHRI
HOHFWURPDJQHWLFHQHUJ\GLUHFWHGHQHUJ\RUDQWLUDGLDWLRQZHDSRQVWR
DWWDFNSHUVRQQHOIDFLOLWLHVRUHTXLSPHQWZLWKWKHLQWHQWRIGHJUDGLQJ
QHXWUDOL]LQJRUGHVWUR\LQJHQHP\FRPEDWFDSDELOLW\DQGLVFRQVLGHUHGD
IRUPRIILUHV($LQFOXGHV  DFWLRQVWDNHQWRSUHYHQWRUUHGXFHDQ
HQHP\¶VHIIHFWLYHXVHRIWKHHOHFWURPDJQHWLFVSHFWUXPVXFKDVMDPPLQJ
DQGHOHFWURPDJQHWLFGHFHSWLRQDQG  HPSOR\PHQWRIZHDSRQVWKDWXVH
HLWKHUHOHFWURPDJQHWLFRUGLUHFWHGHQHUJ\DVWKHLUSULPDU\GHVWUXFWLYH
PHFKDQLVP ODVHUVUDGLRIUHTXHQF\ZHDSRQVSDUWLFOHEHDPV RUDQWL
UDGLDWLRQZHDSRQV )0 

(OHFWURQLF3URWHFWLRQ (3 7KDWGLYLVLRQRI(:LQYROYLQJSDVVLYHDQG
DFWLYHPHDQVWDNHQWRSURWHFWSHUVRQQHOIDFLOLWLHVDQGHTXLSPHQWIURPDQ\
HIIHFWVRIIULHQGO\RUHQHP\HPSOR\PHQWRIHOHFWURQLFZDUIDUHWKDW
GHJUDGHQHXWUDOL]HRUGHVWUR\IULHQGO\FRPEDWFDSDELOLW\ )0 
(OHFWURQLF:DUIDUH6XSSRUW (6 7KDWGLYLVLRQRI(:LQYROYLQJ
DFWLRQVWDVNHGE\RUXQGHUGLUHFWFRQWURORIDQRSHUDWLRQDOFRPPDQGHUWR
VHDUFKIRULQWHUFHSWLGHQWLI\DQGORFDWHRUORFDOL]HVRXUFHVRILQWHQWLRQDO
DQGXQLQWHQWLRQDOUDGLDWHGHOHFWURPDJQHWLFHQHUJ\IRUWKHSXUSRVHRI
LPPHGLDWHWKUHDWUHFRJQLWLRQWDUJHWLQJSODQQLQJDQGFRQGXFWRIIXWXUH
RSHUDWLRQV7KXV(6SURYLGHVLQIRUPDWLRQUHTXLUHGIRULPPHGLDWH

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  
GHFLVLRQVLQYROYLQJ(:RSHUDWLRQVDQGRWKHUWDFWLFDODFWLRQVVXFKDV
WKUHDWDYRLGDQFHWDUJHWLQJDQGKRPLQJ(OHFWURQLFZDUIDUHVXSSRUWGDWD
FDQEHXVHGWRSURGXFHVLJQDOVLQWHOOLJHQFHSURYLGHWDUJHWLQJIRUHOHFWURQLF
RUGHVWUXFWLYHDWWDFNDQGSURGXFHPHDVXUHPHQWDQGVLJQDWXUHLQWHOOLJHQFH
)0 

(QG6WDWH$WWKHRSHUDWLRQDODQGWDFWLFDOOHYHOVWKHFRQGLWLRQVWKDWZKHQ
DFKLHYHGDFFRPSOLVKWKHPLVVLRQ$WWKHRSHUDWLRQDOOHYHOWKHVH
FRQGLWLRQVDWWDLQWKHDLPVVHWIRUWKHFDPSDLJQRUPDMRURSHUDWLRQ )0
 

(QJDJHPHQW$UHD ($ $QDUHDZKHUHWKHFRPPDQGHULQWHQGVWR
FRQWDLQDQGGHVWUR\DQHQHP\IRUFHZLWKWKHPDVVHGHIIHFWVRIDOODYDLODEOH
ZHDSRQVDQGVXSSRUWLQJV\VWHPV6HHDOVR)0IRUIXUWKHU
LQIRUPDWLRQ )0 

(VVHQWLDO(OHPHQWRI)ULHQGO\,QIRUPDWLRQ ((),  $UP\ $FULWLFDO
DVSHFWRIDIULHQGO\RSHUDWLRQWKDWLINQRZQE\WKHHQHP\ZRXOG
VXEVHTXHQWO\FRPSURPLVHOHDGWRIDLOXUHRUOLPLWVXFFHVVRIWKHRSHUDWLRQ
DQGWKHUHIRUHVKRXOGEHSURWHFWHGIURPHQHP\GHWHFWLRQ )0 

(VVHQWLDO)LUH6XSSRUW7DVN ()67 $WDVNIRUILUHVXSSRUWWR
DFFRPSOLVKWKDWLVUHTXLUHGWRVXSSRUWDFRPELQHGDUPVRSHUDWLRQ)DLOXUH
WRDFKLHYHPD\FDXVHWKHFRPPDQGHUWRDOWHUKLVRSHUDWLRQDOSODQ )0
 

(VVHQWLDO7DVN±$VSHFLILHGRULPSOLHGWDVNWKDWPXVWEHH[HFXWHGWR
DFFRPSOLVKWKHPLVVLRQ(VVHQWLDOWDVNVDUHDOZD\VLQFOXGHGLQWKHPLVVLRQ
VWDWHPHQW )0 

(YHQW7HPSODWH (9(17(03 $PRGHODJDLQVWZKLFKHQHP\DFWLYLW\
FDQEHUHFRUGHGDQGFRPSDUHG,WUHSUHVHQWVDVHTXHQWLDOSURMHFWLRQRI
HYHQWVWKDWUHODWHWRVSDFHDQGWLPHRQWKHEDWWOHILHOGDQGLQGLFDWHWKH
HQHP\¶VDELOLW\WRDGRSWDSDUWLFXODU&2$7KH(9(17(03LVDJXLGHIRU
FROOHFWLRQDQGUHFRQQDLVVDQFHDQGVXUYHLOODQFHSODQQLQJ )0 

([HFXWLRQ0DWUL[$YLVXDODQGVHTXHQWLDOUHSUHVHQWDWLRQRIWKHFULWLFDO
WDVNVDQGUHVSRQVLEOHRUJDQL]DWLRQVE\WLPHRUIRUDWDFWLFDORSHUDWLRQXVHG
DVDVWDIIWRRO )0 

)HDVLEOH$FFHSWDEOH'LVWLQJXLVKDEOH6XLWDEOH&RPSOHWH )$'6& 
&ULWHULD±8VHGLQ&2$GHYHORSPHQWWRHQVXUHWKDWHDFKSURSRVHG&2$
PHHWVWKHFRPPDQGHU¶VQHHGVE\PHHWLQJWKHFULWHULDDVIROORZV

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  
ƒ )HDVLEOHDFFRPSOLVKLQJWKHPLVVLRQZLWKLQHVWDEOLVKHGWLPH
VSDFHDQGUHVRXUFHFRQVWUDLQWV
ƒ $FFHSWDEOHEDODQFLQJFRVWV IRUFHVUHVRXUFHVULVNDQGVRRQ ZLWK
DGYDQWDJHVJDLQHGE\H[HFXWLQJDSDUWLFXODU&2$
ƒ 'LVWLQJXLVKDEOHSUHSDULQJ&2$VWKDWDUHVLJQLILFDQWO\GLIIHUHQW
XQLTXH IURPHDFKRWKHU
ƒ 6XLWDEOHPXVWDFFRPSOLVKWKHPLVVLRQDQGFRPSO\ZLWKWKH
&RPPDQGHU¶V*XLGDQFH
ƒ &RPSOHWHLQFRUSRUDWLQJPDMRURSHUDWLRQVDQGWDVNVWREH
DFFRPSOLVKHGLQFOXGLQJIRUFHVUHTXLUHGORJLVWLFVFRQFHSW
GHSOR\PHQWFRQFHSWHPSOR\PHQWFRQFHSWWLPHHVWLPDWHVIRUUHDFKLQJ
REMHFWLYHVUHVHUYHIRUFHFRQFHSWDQGWKHGHVLUHGHQGVWDWH )0 

)LUH'LUHFWLRQ&HQWHU )'& 7KDWHOHPHQWRID&3FRQVLVWLQJRI
JXQQHU\DQGFRPPXQLFDWLRQSHUVRQQHODQGHTXLSPHQWE\PHDQVRIZKLFK
WKHFRPPDQGHUH[HUFLVHVILUHGLUHFWLRQDQGRUILUHFRQWURO7KH)'&
UHFHLYHVWDUJHWLQWHOOLJHQFHDQGUHTXHVWVIRUILUHDQGWUDQVODWHVWKHPLQWR
DSSURSULDWHILUHGLUHFWLRQ7KH)'&SURYLGHVWLPHO\DQGHIIHFWLYHWDFWLFDO
DQGWHFKQLFDOILUHFRQWUROLQVXSSRUWRIFXUUHQWRSHUDWLRQV6HHDOVR)0
IRUIXUWKHULQIRUPDWLRQ )0 

)RUFH;;,%DWWOH&RPPDQG%ULJDGHDQG%HORZ )%&% 7KH
)%&%LVWKHPRELOH,1)26<6WKDWSURYLGHVDEDWWOHFRPPDQGFDSDELOLW\
WKDWVLPSOLILHVVLWXDWLRQDODZDUHQHVVDQGDVVLVWVLQWKHSRVLWLRQLQJRI
RUJDQLFXQLWV)%&%LQWHJUDWHVZLWKWKH$%&6VXEV\VWHPVDQGFDQ
WUDQVPLW6$DQGSURYLGH&PHVVDJLQJ :DUILJKWHU¶V*XLGHWR$UP\
%DWWOH&RPPDQG6\VWHPV 

)UDJPHQWDU\2UGHU )5$*2 $QDEEUHYLDWHGIRUPRIDQRSHUDWLRQ
RUGHU YHUEDOZULWWHQRUGLJLWDO XVXDOO\LVVXHGRQDGD\WRGD\EDVLVWKDW
HOLPLQDWHVWKHQHHGIRUUHVWDWLQJLQIRUPDWLRQFRQWDLQHGLQDEDVLFRSHUDWLRQ
RUGHU,WPD\EHLVVXHGLQVHFWLRQV,WLVLVVXHGDIWHUDQRSHUDWLRQRUGHUWR
FKDQJHRUPRGLI\WKDWRUGHURUWRH[HFXWHDEUDQFKRUVHTXHOWRWKDWRUGHU
-3 

)ULHQGO\)RUFH,QIRUPDWLRQ5HTXLUHPHQWV )),5  MRLQW ,QIRUPDWLRQ
WKHFRPPDQGHUDQGVWDIIQHHGWRXQGHUVWDQGWKHVWDWXVRIIULHQGO\IRUFHDQG
VXSSRUWLQJFDSDELOLWLHV -3 

)XOO6SHFWUXP2SHUDWLRQV7KH$UP\¶VRSHUDWLRQDOFRQFHSW$UP\
IRUFHVFRPELQHRIIHQVLYHGHIHQVLYHDQGVWDELOLW\RUFLYLOVXSSRUW
RSHUDWLRQVVLPXOWDQHRXVO\DVSDUWRIDQLQWHUGHSHQGHQWMRLQWIRUFHWRVHL]H
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
UHWDLQDQGH[SORLWWKHLQLWLDWLYHDFFHSWLQJSUXGHQWULVNWRFUHDWH
RSSRUWXQLWLHVWRDFKLHYHGHFLVLYHUHVXOWV7KH\HPSOR\V\QFKURQL]HG
DFWLRQ²OHWKDODQGQRQOHWKDO²SURSRUWLRQDOWRWKHPLVVLRQDQGLQIRUPHGE\
DWKRURXJKXQGHUVWDQGLQJRIDOOYDULDEOHVRIWKHRSHUDWLRQDOHQYLURQPHQW
0LVVLRQFRPPDQGWKDWFRQYH\VLQWHQWDQGDQDSSUHFLDWLRQRIDOODVSHFWVRI
WKHVLWXDWLRQJXLGHVWKHDGDSWLYHXVHRI$UP\IRUFHV )0 

*UDSKLF&RQWURO0HDVXUH *&0 ±$V\PEROXVHGRQPDSVDQG
GLVSOD\VWRUHJXODWHIRUFHVDQGZDUILJKWLQJIXQFWLRQV )0 

+D]DUG$FRQGLWLRQZLWKWKHSRWHQWLDOWRFDXVHLQMXU\LOOQHVVRUGHDWKRI
SHUVRQQHOGDPDJHWRRUORVVRIHTXLSPHQWRUSURSHUW\RUPLVVLRQ
GHJUDGDWLRQ )0 

+LJKSD\RII7DUJHW +37 $WDUJHWZKRVHORVVWRWKHHQHP\ZLOO
VLJQLILFDQWO\FRQWULEXWHWRWKHVXFFHVVRIWKHIULHQGO\&2$+37VDUHWKRVH
+97VWKDWPXVWEHDFTXLUHGDQGVXFFHVVIXOO\DWWDFNHGIRUWKHVXFFHVVRI
WKHIULHQGO\FRPPDQGHU¶VPLVVLRQ )0 

+LJKYDOXH7DUJHW +97 $WDUJHWWKHHQHP\FRPPDQGHUUHTXLUHVIRU
WKHVXFFHVVIXOFRPSOHWLRQRIWKHPLVVLRQ7KHORVVRI+97VZRXOGEH
H[SHFWHGWRVHULRXVO\GHJUDGHLPSRUWDQWHQHP\IXQFWLRQVWKURXJKRXWWKH
IULHQGO\FRPPDQGHU¶V$2, )0 

,PSOLHG7DVN$WDVNWKDWPXVWEHSHUIRUPHGWRDFFRPSOLVKWKHPLVVLRQ
EXWLVQRWVWDWHGLQWKH++4RUGHU )0 

,QIRUPDWLRQ0DQDJHPHQW $UP\ 7KHVFLHQFHRIXVLQJSURFHGXUHVDQG
LQIRUPDWLRQV\VWHPVWRFROOHFWSURFHVVVWRUHGLVSOD\GLVVHPLQDWHDQG
SURWHFWNQRZOHGJHSURGXFWVGDWDDQGLQIRUPDWLRQ )0 

,QIRUPDWLRQ2SHUDWLRQV ,2  MRLQW 7KHLQWHJUDWHGHPSOR\PHQWRIWKH
FRUHFDSDELOLWLHVRIHOHFWURQLFZDUIDUHFRPSXWHUQHWZRUNRSHUDWLRQV
SV\FKRORJLFDORSHUDWLRQVPLOLWDU\GHFHSWLRQDQGRSHUDWLRQVVHFXULW\LQ
FRQFHUWZLWKVSHFLILHGVXSSRUWLQJDQGUHODWHGFDSDELOLWLHVWRLQIOXHQFH
GLVUXSWFRUUXSWRUXVXUSDGYHUVDULDOKXPDQDQGDXWRPDWHGGHFLVLRQ
PDNLQJZKLOHSURWHFWLQJRXURZQ -3 

,QIRUPDWLRQ5HTXLUHPHQW ,5 $OOLQIRUPDWLRQHOHPHQWVWKH
FRPPDQGHUDQGVWDIIUHTXLUHWRVXFFHVVIXOO\FRQGXFWRSHUDWLRQVWKDWLVDOO
HOHPHQWVQHFHVVDU\WRDGGUHVVWKHPLVVLRQYDULDEOHVRI0(777& )0
 


%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  
,QWHOOLJHQFH3UHSDUDWLRQRIWKH%DWWOHILHOG ,3% ±7KHV\VWHPDWLF
FRQWLQXRXVSURFHVVRIDQDO\]LQJWKHWKUHDWDQGHQYLURQPHQWLQDVSHFLILF
JHRJUDSKLFDUHD,3%LVGHVLJQHGWRVXSSRUWWKHVWDIIHVWLPDWHDQG0'03
0RVWLQWHOOLJHQFHUHTXLUHPHQWVDUHJHQHUDWHGDVDUHVXOWRIWKH,3%SURFHVV
DQGLWVLQWHUUHODWLRQZLWKWKHGHFLVLRQPDNLQJSURFHVV )0 

,QWHOOLJHQFH6XPPDU\ ,17680 $VSHFLILFUHSRUWSURYLGLQJD
VXPPDU\RILWHPVRILQWHOOLJHQFHDWIUHTXHQWLQWHUYDOV -3 

,QWHOOLJHQFH6XUYHLOODQFHDQG5HFRQQDLVVDQFH ,65  $UP\ $Q
DFWLYLW\WKDWV\QFKURQL]HVDQGLQWHJUDWHVWKHSODQQLQJDQGRSHUDWLRQRI
VHQVRUVDVVHWVDQGSURFHVVLQJH[SORLWDWLRQDQGGLVVHPLQDWLRQV\VWHPVLQ
GLUHFWVXSSRUWRIFXUUHQWDQGIXWXUHRSHUDWLRQV7KLVLVDQLQWHJUDWHG
LQWHOOLJHQFHDQGRSHUDWLRQVIXQFWLRQ)RU$UP\IRUFHVWKLVDFWLYLW\LVD
FRPELQHGDUPVRSHUDWLRQWKDWIRFXVHVRQSULRULW\LQWHOOLJHQFHUHTXLUHPHQWV
ZKLOHDQVZHULQJWKHFRPPDQGHU¶VFULWLFDOLQIRUPDWLRQUHTXLUHPHQWV )0
 

,QWHOOLJHQFH6XUYHLOODQFHDQG5HFRQQDLVVDQFH$VVHWV7KRVH
RUJDQL]DWLRQVV\VWHPVVHQVRUVSHUVRQQHODQGHTXLSPHQWGHGLFDWHGWRRU
GLUHFWHGWRZDUGWKHFROOHFWLRQRILQIRUPDWLRQLQUHVSRQVHWRWKH&&,5
)0 

,QWHOOLJHQFH6XUYHLOODQFHDQG5HFRQQDLVVDQFH3ODQ$QLQWHJUDWHG
SODQIRUFROOHFWLRQRILQIRUPDWLRQIURPDOODYDLODEOHVRXUFHVWKDWLVGULYHQ
E\WKH&&,57KHSODQWDVNV,65DVVHWVWRFROOHFWFULWLFDOLQIRUPDWLRQ
ZLWKLQDUHTXLUHGWLPHOLQH7KHSODQLVUHYLVHGDQGXSGDWHGDVWKH
FRPPDQGHU
V,5VFKDQJH )0 

,QWHOOLJHQFH6\QFKURQL]DWLRQ0DWUL[$JUDSKLFUHSUHVHQWDWLRQWKDWWLHV
WKHFROOHFWLRQSODQWRDQRSHUDWLRQDQGWKHFRPPDQGHU¶VLQWHOOLJHQFH
QHHGV )0 

/DWHVW7LPH,QWHOOLJHQFHLVRI9DOXH /7,29 7KHWLPHE\ZKLFK
LQIRUPDWLRQPXVWEHGHOLYHUHGWRWKHUHTXHVWRULQRUGHUWRSURYLGHGHFLVLRQ
PDNHUVZLWKWLPHO\LQWHOOLJHQFH )0 

/HYHOVRI5LVN8WLOL]LQJWKHULVNDVVHVVPHQWPDWUL[WKHSRLQWZKHUHWKH
VHYHULW\URZDQGSUREDELOLW\FROXPQLQWHUVHFWGHILQHVWKHOHYHORIULVN
7KHUHDUHIRXUOHYHOVRIULVNH[WUHPHO\KLJKULVN ( KLJKULVN + 
PRGHUDWHULVN 0 DQGORZULVN /  )0 


%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  
/LQHRI&RQWDFW /& $JHQHUDOWUDFHGHOLQHDWLQJWKHORFDWLRQV
ZKHUHIULHQGO\DQGHQHP\IRUFHVDUHHQJDJHG6HHDOVR)0IRUIXUWKHU
LQIRUPDWLRQ )0 

/LQHRI'HSDUWXUH /' $SKDVHOLQHFURVVHGDWDSUHVFULEHGWLPHE\
WURRSVLQLWLDWLQJDQRIIHQVLYHRSHUDWLRQ6HHDOVR)0IRUIXUWKHU
LQIRUPDWLRQ )0 

/RQJ5DQJH6XUYHLOODQFH /56 /RQJUDQJHVXUYHLOODQFHXQLWVXVH
LQIDQWU\DQGUDQJHUVNLOOVFRPELQHGZLWKVNLOOHGFRPPXQLFDWLRQRSHUDWRUV
DQGLQWHOOLJHQFHSHUVRQQHOWRFROOHFWDQGUHSRUWEDWWOHILHOGLQWHOOLJHQFH7KH
IXQGDPHQWDOVRI/56RSHUDWLRQVDUH&FRPPXQLFDWLRQVPLVVLRQ
GHYHORSPHQWDQG236(& )0 

0LOLWDU\'HFLVLRQ0DNLQJ3URFHVV 0'03 ±$SODQQLQJWRROWKDW
HVWDEOLVKHVSURFHGXUHVIRUDQDO\]LQJDPLVVLRQGHYHORSLQJDQDO\]LQJDQG
FRPSDULQJFRXUVHVRIDFWLRQDJDLQVWFULWHULDRIVXFFHVVDQGHDFKRWKHU
VHOHFWLQJWKHRSWLPXPFRXUVHRIDFWLRQDQGSURGXFLQJDSODQRURUGHU
)0 

0LVVLRQ(QHP\7HUUDLQ7LPH$YDLODEOH7URRSV$YDLODEOHDQG
&LYLOLDQV 0(777& $PHPRU\DLGXVHGLQWZRFRQWH[WV,QWKH
FRQWH[WRILQIRUPDWLRQPDQDJHPHQWWKHPDMRUVXEMHFWFDWHJRULHVLQWR
ZKLFKUHOHYDQWLQIRUPDWLRQLVJURXSHGIRUPLOLWDU\RSHUDWLRQVPLVVLRQ
HQHP\WHUUDLQDQGZHDWKHUWURRSVDQGVXSSRUWDYDLODEOHWLPHDYDLODEOH
FLYLOFRQVLGHUDWLRQV )0 ,QWKHFRQWH[WRIWDFWLFVPDMRUPLVVLRQ
YDULDEOHVFRQVLGHUHGGXULQJPLVVLRQDQDO\VLV )0 

0LVVLRQ(VVHQWLDO7DVN(VVHQWLDOWDVNVDUHVSHFLILHGRULPSOLHGWDVNV
WKDWPXVWEHH[HFXWHGWRDFFRPSOLVKWKHPLVVLRQ(VVHQWLDOWDVNVDUHDOZD\V
LQFOXGHGLQWKHXQLW¶VPLVVLRQVWDWHPHQW )0 

0LVVLRQ(VVHQWLDO7DVN/LVW 0(7/ $FRPSLODWLRQRIFROOHFWLYH
PLVVLRQHVVHQWLDOWDVNVWKDWDQRUJDQL]DWLRQPXVWSHUIRUPVXFFHVVIXOO\WR
DFFRPSOLVKLWVZDUWLPHPLVVLRQ V  )0 

0LVVLRQ2UGHUV$WHFKQLTXHIRUGHYHORSLQJRUGHUVWKDWHPSKDVL]HVWR
VXERUGLQDWHVWKHUHVXOWVWREHDWWDLQHGQRWKRZWKH\DUHWRDFKLHYHWKHP,W
SURYLGHVPD[LPXPIUHHGRPRIDFWLRQLQGHWHUPLQLQJKRZWREHVW
DFFRPSOLVKDVVLJQHGPLVVLRQV )0 

0LVVLRQ6WDWHPHQW$VKRUWSDUDJUDSKRUVHQWHQFHGHVFULELQJWKHWDVNDQG
SXUSRVHWKDWFOHDUO\LQGLFDWHVWKHDFWLRQWREHWDNHQDQGWKHUHDVRQWKHUHRI

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  
,WXVXDOO\FRQWDLQVWKHHOHPHQWVRIZKRZKDWZKHQZKHUHDQGZK\
DQGWKHUHDVRQVWKHUHRIEXWVHOGRPVSHFLILHVKRZ )0 

0LVVLRQ7UDLQLQJ3ODQ 073 $Q073LVDWUDLQLQJGRFXPHQWZKLFK
SURYLGHVXQLWVDFOHDUGHVFULSWLRQRIZKDWDQGKRZWRWUDLQWRDFKLHYH
FULWLFDOZDUWLPHPLVVLRQSURILFLHQF\,WQHHGVWREHKRUL]RQWDOO\DQG
YHUWLFDOO\LQWHJUDWHG 75$'2&5HJXODWLRQ 

0RGLILHG&RPELQHG2EVWDFOH2YHUOD\ 0&22 ±$MRLQWLQWHOOLJHQFH
SUHSDUDWLRQRIWKHRSHUDWLRQDOHQYLURQPHQWSURGXFWXVHGWRSRUWUD\WKH
HIIHFWVRIHDFKRSHUDWLRQDOGLPHQVLRQRQPLOLWDU\RSHUDWLRQV,WQRUPDOO\
GHSLFWVPLOLWDULO\VLJQLILFDQWDVSHFWVRIWKHRSHUDWLRQDOHQYLURQPHQWVXFK
DVREVWDFOHVUHVWULFWLQJPLOLWDU\PRYHPHQWNH\JHRJUDSK\DQGPLOLWDU\
REMHFWLYHV7KH0&22LVFUHDWHGE\FRPELQLQJWKH&RPELQHG2EVWDFOH
2YHUOD\ &22 ZLWKNH\WHUUDLQGHIHQVLEOHWHUUDLQHQJDJHPHQWDUHDVDQG
DYHQXHVRIDSSURDFKRYHUOD\V )0 

0RGLILHG7DEOHRI2UJDQL]DWLRQDQG(TXLSPHQW 072( 7KH7DEOH
RI2UJDQL]DWLRQDQG(TXLSPHQW 72( LVDGRFXPHQWWKDWSUHVFULEHVWKH
ZDUWLPHPLVVLRQFDSDELOLWLHVRUJDQL]DWLRQDOVWUXFWXUHDQGPLVVLRQ
HVVHQWLDOSHUVRQQHODQGHTXLSPHQWUHTXLUHPHQWVIRUPLOLWDU\XQLWV,W
SRUWUD\VWKHGRFWULQDOPRGHUQL]DWLRQSDWK 02'3$7+ RIDXQLWRYHUWLPH
IURPWKHOHDVWPRGHUQL]HGFRQILJXUDWLRQ EDVH72( WRWKHPRVW
PRGHUQL]HG REMHFWLYH72( $Q072(LVDQDXWKRUL]DWLRQGRFXPHQWWKDW
SUHVFULEHVWKHPRGLILFDWLRQRIDEDVLF72(QHFHVVDU\WRDGDSWLWWRWKH
QHHGVRIDVSHFLILFXQLWRUW\SHRIXQLW $5 

1DPHG$UHDRI,QWHUHVW 1$, 7KHJHRJUDSKLFDODUHDZKHUH
LQIRUPDWLRQWKDWZLOOVDWLVI\DVSHFLILFLQIRUPDWLRQUHTXLUHPHQWFDQEH
FROOHFWHG1$,VDUHXVXDOO\VHOHFWHGWRFDSWXUHLQGLFDWLRQVRIDGYHUVDU\
&2$VEXWDOVRPD\EHUHODWHGWRFRQGLWLRQVRIWKHRSHUDWLRQDO
HQYLURQPHQW )0 

1HVWHG&RQFHSW±$SODQQLQJWHFKQLTXHWRDFKLHYHXQLW\RISXUSRVH
ZKHUHE\HDFKVXFFHHGLQJHFKHORQ¶VFRQFHSWLVHPEHGGHGLQWKHRWKHU
)0 

2EVHUYDWLRQDQG)LHOGVRI)LUH$YHQXHVRI$SSURDFK.H\7HUUDLQ
2EVWDFOHVDQG&RYHUDQG&RQFHDOPHQW 2$.2& 7HUUDLQLVQRUPDOO\
DQDO\]HGXVLQJWKHILYHPLOLWDU\DVSHFWVRIWHUUDLQH[SUHVVHGLQWKH
DFURQ\P2$.2&2$.2&KHOSVGHWHUPLQHSUREDEOHKDVW\DPEXVKVLWHV
OLNHO\DUHDVWKHHQHP\PD\XVHIRUPRYHPHQWDQGZKHUHREVHUYDWLRQPD\
LPSURYH,WLVDQDO\]HGDVREVWDFOHVILUVW$$VVHFRQGNH\WHUUDLQWKLUG
REVHUYDWLRQDQGILHOGVRIILUHIRXUWKDQGFRYHUDQGFRQFHDOPHQWODVW7KLV
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
   
WHFKQLTXHXVHVDORJLFDODSSURDFKLQWKDWREVWDFOHVGHSLFWWRDWHDP
OHDGHUZKHUHKLVWHDPFDQQRWJR$$VVKRZZKHUHKLVWHDPFDQJR.H\
WHUUDLQWHOOVWKHWHDPFKLHIZKHUHWKHWHDPVKRXOGJR2EVHUYDWLRQDQG
ILHOGVRIILUHWHOOVDWHDPZKDWKHFDQVHHDQGVKRRWIURP&RYHUDQG
FRQFHDOPHQWVKRZVDWHDPZKHUHKHFDQ¶WEHVHHQDQGZKHUHWKHWHDPFDQ
HQJDJHWKHHQHP\ )0 

2Q2UGHU 22 0LVVLRQ$PLVVLRQWREHH[HFXWHGDWDQXQVSHFLILHG
WLPHLQWKHIXWXUH$XQLWZLWKDQRQRUGHUPLVVLRQLVDFRPPLWWHGIRUFH
7KHFRPPDQGHUHQYLVLRQVWDVNH[HFXWLRQLQWKHFRQFHSWRIRSHUDWLRQV
KRZHYHUKHPD\QRWNQRZWKHH[DFWWLPHRUSODFHRIH[HFXWLRQ
6XERUGLQDWHFRPPDQGHUVGHYHORSSODQVDQGRUGHUVDQGDOORFDWHUHVRXUFHV
WDVNRUJDQL]HDQGSRVLWLRQIRUFHVIRUH[HFXWLRQ )0 

2SHUDWLRQVDQG,QWHOOLJHQFH 2 , ±2 ,JHQHUDOO\UHIHUVWRRQHRIWKH
NH\FRPPXQLFDWLRQVQHWVZLWKLQD72&7KLVQHWFRPELQHGZLWKWKH
DGPLQLVWUDWLRQDQGORJLVWLFV $ / QHWFRPSULVHVWKHPDMRULW\RIWKH
LQIRUPDWLRQIORZGXULQJEDWWOHFRPPDQG )0 

2SHUDWLRQ2UGHU 2325' $GLUHFWLYHLVVXHGE\DFRPPDQGHUWR
VXERUGLQDWHFRPPDQGHUVIRUWKHSXUSRVHRIHIIHFWLQJWKHFRRUGLQDWHG
H[HFXWLRQRIDQRSHUDWLRQ$OVRFDOOHGWKHILYHSDUDJUDSKILHOGRUGHULW
FRQWDLQVDVDPLQLPXPDGHVFULSWLRQRIWKHWDVNRUJDQL]DWLRQVLWXDWLRQ
PLVVLRQH[HFXWLRQDGPLQLVWUDWLYHDQGORJLVWLFVVXSSRUWDQGFRPPDQGDQG
VLJQDOIRUWKHVSHFLILHGRSHUDWLRQ -3 

2SHUDWLRQ3ODQ 23/$1 $Q\SODQIRUWKHSUHSDUDWLRQH[HFXWLRQDQG
DVVHVVPHQWRIPLOLWDU\RSHUDWLRQV -3 

2UGHURI%DWWOH 2% 7KHLGHQWLILFDWLRQVWUHQJWKFRPPDQGVWUXFWXUH
DQGGLVSRVLWLRQRIWKHSHUVRQQHOXQLWVDQGHTXLSPHQWRIDQ\PLOLWDU\
IRUFH -3 

2UGHUV*URXS$JURXSDVVHPEOHGWRUHFHLYHDFRPPDQGHU¶VRUGHUV7KH
EDVLFFRPSRVLWLRQRIWKLVJURXSLVQRUPDOO\SUHVFULEHGLQWKHVWDQGLQJ
RSHUDWLQJSURFHGXUHVRIWKHXQLWRUIRUPDWLRQFRQFHUQHG )0 

2YHUOD\2UGHU$WHFKQLTXHXVHGWRLVVXHDQRUGHU QRUPDOO\D
IUDJPHQWDU\RUGHU WKDWKDVDEEUHYLDWHGLQVWUXFWLRQVZULWWHQRQDQRYHUOD\
)0 

3DUDOOHO3ODQQLQJ7ZRRUPRUHHFKHORQVSODQQLQJIRUDQRSHUDWLRQ
QHDUO\VLPXOWDQHRXVO\ )0 

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
 ! 
3ULRULW\,QWHOOLJHQFH5HTXLUHPHQWV 3,5  MRLQW $QLQWHOOLJHQFH
UHTXLUHPHQWVWDWHGDVDSULRULW\IRULQWHOOLJHQFHVXSSRUWWKDWWKH
FRPPDQGHUDQGVWDIIQHHGWRXQGHUVWDQGWKHDGYHUVDU\RUWKHRSHUDWLRQDO
HQYLURQPHQW -3 >1RWH,QWKLVFRQWH[WDGYHUVDU\DOVRUHIHUVWR
HQHPLHV@

3UREDELOLW\,QULVNDQDO\VLVWKHOLNHOLKRRGWKDWDQHYHQWZLOORFFXU7KHUH
DUHILYHGHJUHHVRISUREDELOLW\IUHTXHQW $ OLNHO\ % RFFDVLRQDO & 
VHOGRP ' DQGXQOLNHO\ (  )0 

3V\FKRORJLFDO2SHUDWLRQV 36<23 3ODQQHGRSHUDWLRQVWRFRQYH\
VHOHFWHGLQIRUPDWLRQDQGLQGLFDWRUVWRIRUHLJQDXGLHQFHVWRLQIOXHQFHWKHLU
HPRWLRQVPRWLYHVREMHFWLYHUHDVRQLQJDQGXOWLPDWHO\WKHEHKDYLRURI
IRUHLJQJRYHUQPHQWVRUJDQL]DWLRQVJURXSVDQGLQGLYLGXDOV7KHSXUSRVH
RI36<23LVWRLQGXFHRUUHLQIRUFHIRUHLJQDWWLWXGHVDQGEHKDYLRU
IDYRUDEOHWRWKHRULJLQDWRU¶VREMHFWLYHV6HHDOVR)0IRUIXUWKHU
LQIRUPDWLRQ -3 

3XEOLF$IIDLUV2IILFHU 3$2 ±6WDIIRIILFHUUHVSRQVLEOHIRUWKRVHSXEOLF
LQIRUPDWLRQFRPPDQGLQIRUPDWLRQDQGFRPPXQLW\UHODWLRQVDFWLYLWLHV
GLUHFWHGWRZDUGERWKWKHH[WHUQDODQGLQWHUQDOSXEOLFVZLWKLQWHUHVWLQWKH
'HSDUWPHQWRI'HIHQVH6HHDOVR)0IRUIXUWKHULQIRUPDWLRQ )0
 

5HDFKEDFN7KHSURFHVVRIREWDLQLQJSURGXFWVVHUYLFHVDQGDSSOLFDWLRQV
RUIRUFHVRUHTXLSPHQWRUPDWHULDOIURPRUJDQL]DWLRQVWKDWDUHQRWIRUZDUG
GHSOR\HG )0 

5HFRQQDLVVDQFH$PLVVLRQXQGHUWDNHQWRREWDLQE\YLVXDOREVHUYDWLRQ
RURWKHUGHWHFWLRQPHWKRGVLQIRUPDWLRQDERXWWKHDFWLYLWLHVDQGUHVRXUFHV
RIDQHQHP\RUSRWHQWLDOHQHP\RUWRVHFXUHGDWDFRQFHUQLQJWKH
PHWHRURORJLFDOK\GURJUDSKLFRUJHRJUDSKLFFKDUDFWHULVWLFVRIDSDUWLFXODU
DUHD )0 

5HFRQQDLVVDQFH6XUYHLOODQFHDQG7DUJHW$FTXLVLWLRQ 567$ ±567$
XQLWVDUHVPDOOUHFRQQDLVVDQFHXQLWVEDVHGRQFDYDOU\VTXDGURQVDQGDFW
ERWKDWWKHVTXDGURQ EDWWDOLRQ OHYHODVDEULJDGHUHFRQQDLVVDQFHWHDPIRU
WKHUHJLPHQW7KH567$VTXDGURQZLOOKDYHIRXUWRVL[WURRSVFRPSULVHG
RIFDYDOU\VFRXWVLQIDQWU\PHQDQGD+4WURRS567$PLVVLRQVJHQHUDOO\
LQYROYHSURYLGLQJZDUQLQJVRILPSHQGLQJWKUHDWVRUDWWDFNV )0 

5HOHYDQW,QIRUPDWLRQ 5, $OOLQIRUPDWLRQRILPSRUWDQFHWR
FRPPDQGHUVDQGVWDIIVLQWKHH[HUFLVHRI& )0 

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
 " 
5HTXHVWIRU,QIRUPDWLRQ 5), ±$IRUPDOUHTXHVWXVXDOO\WR++4
RUDQRXWVLGHDJHQF\IRUVSHFLILFUHOHYDQWLQIRUPDWLRQRULQWHOOLJHQFH )0
 

5HVWDWHG0LVVLRQ,PPHGLDWHO\DIWHUWKHPLVVLRQDQDO\VLVEULHILQJWKH
FRPPDQGHUDSSURYHVDUHVWDWHGPLVVLRQ7KLVFDQEHWKHVWDII¶V
UHFRPPHQGHGPLVVLRQVWDWHPHQWDPRGLILHGYHUVLRQRIWKHVWDII¶V
UHFRPPHQGDWLRQRURQHWKDWWKHFRPPDQGHUKDVGHYHORSHGSHUVRQDOO\
2QFHDSSURYHGWKHUHVWDWHGPLVVLRQEHFRPHVWKHXQLWPLVVLRQ )0 

5LVN0DQDJHPHQW5LVNPDQDJHPHQWLVWKHSURFHVVRILGHQWLI\LQJ
DVVHVVLQJDQGFRQWUROOLQJULVNVDULVLQJIURPRSHUDWLRQDOIDFWRUVDQG
PDNLQJGHFLVLRQVWKDWEDODQFHULVNFRVWZLWKPLVVLRQEHQHILWV5LVN
PDQDJHPHQWFRQVLVWVRIILYHVWHSVWKDWDUHSHUIRUPHGWKURXJKRXWWKH
RSHUDWLRQVSURFHVV )0 

5LVN$VVHVVPHQW7KHLGHQWLILFDWLRQDQGDVVHVVPHQWRIKD]DUGV ILUVWWZR
VWHSVRIWKHULVNPDQDJHPHQWSURFHVV  )0 

5LVN$VVHVVPHQW0DWUL[$WRROWKDWFDQEHXVHGWRGHWHUPLQHOHYHOVRI
ULVN/HDGHUVDQGVWDIIVHQWHUWKHHVWLPDWHGGHJUHHRIVHYHULW\DQG
SUREDELOLW\IRUHDFKLGHQWLILHGKD]DUGIURPWKHVHYHULW\URZDQGSUREDELOLW\
FROXPQUHVSHFWLYHO\ )0 

5XOHVRI(QJDJHPHQW 52( 'LUHFWLYHVLVVXHGE\FRPSHWHQWPLOLWDU\
DXWKRULW\ZKLFKGHOLQHDWHWKHFLUFXPVWDQFHVDQGOLPLWDWLRQVXQGHUZKLFK
86)RUFHVZLOOLQLWLDWHDQGRUFRQWLQXHFRPEDWHQJDJHPHQWZLWKRWKHU
IRUFHV -3 

5XOHVRI,QWHUDFWLRQ 52, 52,HPERG\WKHKXPDQGLPHQVLRQRI
FRPEDW7KH\OD\WKHIRXQGDWLRQIRUVXFFHVVIXOUHODWLRQVKLSVZLWKWKH
P\ULDGRIIDFWLRQVDQGLQGLYLGXDOVWKDWSOD\FULWLFDOUROHVLQRSHUDWLRQV
52,HQFRPSDVVDQDUUD\RILQWHUSHUVRQDOFRPPXQLFDWLRQVNLOOVVXFKDV
SHUVXDVLRQDQGQHJRWLDWLRQ5XOHVRILQWHUDFWLRQDUHGLUHFWLYHVWKDWJRYHUQ
VROGLHUV
LQWHUDFWLRQZLWKFLYLOLDQV52,OD\WKHIRXQGDWLRQIRUVXFFHVVIXO
UHODWLRQVKLSVZLWKWKHPDQ\IDFWLRQVDQGLQGLYLGXDOVWKDWSOD\NH\UROHV
WKURXJKRXWWKH$252,OLNH52(ZLOOEHFRPPRQWRDOORSHUDWLRQV
WKURXJKRXWWKHIXOOVSHFWUXPRIRSHUDWLRQV52,HQKDQFHWKHVROGLHU
V
DELOLW\WRVXUYLYHLQXQFHUWDLQVLWXDWLRQVE\JLYLQJKLPDFOHDUO\GHILQHGVHW
RISDUDPHWHUVRQLQWHUDFWLRQ6LPXOWDQHRXVO\52,VHUYHWRDLGWKH%1LQ
PLVVLRQDFFRPSOLVKPHQWE\HQVXULQJHYHQKDQGHGLQWHUDFWLRQZLWK
FLYLOLDQVWKURXJKRXWWKH$252,DUHOLQNHGWR52(IRUHDFKSDUWLFXODU
RSHUDWLRQ52,ZLOOOLNHO\FRPHIURPWKH++4DQGFDQEHPDGHPRUHEXW
QRWOHVVUHVWULFWLYHE\WKH%152,PXVWEHWDLORUHGWRWKHVSHFLILFUHJLRQ
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
FXOWXUH V DQGRUSRSXODWLRQVDIIHFWHGE\WKHRSHUDWLRQ/LNH52(
52,FDQEHHIIHFWLYHRQO\LIWKH\DUHWKRURXJKO\UHKHDUVHGDQGXQGHUVWRRG
E\HYHU\PHPEHURIWKH%1 )0 

5XQQLQJ(VWLPDWH 6WDII(VWLPDWH $VWDIIVHFWLRQ¶VFRQWLQXRXV
DVVHVVPHQWRIFXUUHQWDQGIXWXUHRSHUDWLRQVWRGHWHUPLQHLIWKHFXUUHQW
RSHUDWLRQLVSURFHHGLQJDFFRUGLQJWRWKHFRPPDQGHU¶VLQWHQWDQGLIIXWXUH
RSHUDWLRQVDUHVXSSRUWDEOH )0 

6±7KH6 $VVLVWDQW&KLHIRI6WDII3HUVRQQHO LVWKHFRRUGLQDWLQJVWDII
RIILFHUIRUDOOPDWWHUVFRQFHUQLQJKXPDQUHVRXUFHVVXSSRUW PLOLWDU\DQG
FLYLOLDQ 7KH6SURYLGHVWHFKQLFDOGLUHFWLRQLQWKHDUHDVRISHUVRQQHO
UHDGLQHVVPDQDJHPHQWSHUVRQQHODFFRXQWLQJDQGVWUHQJWKUHSRUWLQJ
SHUVRQDOLQIRUPDWLRQPDQDJHPHQWFDVXDOW\RSHUDWLRQVSRVWDORSHUDWLRQV
DQGPRUDOHZHOIDUHDQGUHFUHDWLRQ 0:5 RSHUDWLRQV7KH6LVWKHVWDII
SRLQWRIFRQWDFWIRUHTXDORSSRUWXQLW\UHWHQWLRQLQVSHFWRUJHQHUDODQG
PRUDOHVXSSRUWDFWLYLWLHV )0 

6±7KH6 $VVLVWDQW&KLHIRI6WDII,QWHOOLJHQFH LVWKHFRRUGLQDWLQJ
VWDIIRIILFHUIRUDOOPDWWHUVFRQFHUQLQJWKHHQHP\DQGRUWKUHDWWKH
HQYLURQPHQWDVLWDIIHFWVWKHHQHP\DQGFRXQWHULQWHOOLJHQFH7KH6LV
UHVSRQVLEOHIRULQWHOOLJHQFHUHDGLQHVVLQWHOOLJHQFHWDVNVLQWHOOLJHQFH
V\QFKURQL]DWLRQDQGRWKHULQWHOOLJHQFHVXSSRUW )0 

6±7KH6 $VVLVWDQW&KLHIRI6WDII2SHUDWLRQV LVJHQHUDOO\WKHFKLHI
RIWKHRSHUDWLRQVFHOOZKLFKLQFOXGHVILUHVRSHUDWLRQVDQGHQJLQHHUVWDII
VHFWLRQV+HLVWKHFRRUGLQDWLQJVWDIIRIILFHUIRUDOOPDWWHUVFRQFHUQLQJ
WDFWLFDORSHUDWLRQV7KH6SURYLGHVWHFKQLFDOJXLGDQFHLQWKHDUHDVRI
WUDLQLQJRSHUDWLRQVDQGSODQVDQGIRUFHGHYHORSPHQWDQGPRGHUQL]DWLRQ
+HPD\EHLQWKHOLQHRIVXFFHVVLRQDIWHUWKH;2SHUWKH&RPPDQGHU¶V
*XLGDQFH )0 

6±7KH6 $VVLVWDQW&KLHIRI6WDII/RJLVWLFV LVXVXDOO\WKHFKLHIRI
WKHVXVWDLQPHQWFHOO7KH6LVWKHFRRUGLQDWLQJVWDIIRIILFHUIRUORJLVWLF
RSHUDWLRQVDQGSODQV7KH6SURYLGHVVWDIIRYHUVLJKWLQWKHDUHDVRI
VXSSO\PDLQWHQDQFHWUDQVSRUWDWLRQDQGILHOGVHUYLFHV7KH6LVDOVRWKH
VWDIISRLQWRIFRQWDFWIRUXQLWPRYHPHQWVDQGGHSOR\PHQWV )0 

6±7KH6 $VVLVWDQW&KLHIRI6WDII3ODQV LVJHQHUDOO\WKHFKLHIRIWKH
SODQVFHOORUSODQQLQJWHDP+HLVWKHFRRUGLQDWLQJVWDIIRIILFHUIRUIXWXUH
WDFWLFDOSODQV )0, 

6±7KH6 $VVLVWDQW&KLHIRI6WDII&2SHUDWLRQV LVWKHFRRUGLQDWLQJ
VWDIIRIILFHUIRUDOOPDWWHUVFRQFHUQLQJFRPPDQGFRQWUROFRPPXQLFDWLRQV
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
DQGFRPSXWHU & RSHUDWLRQV7KH6SURYLGHVWHFKQLFDORYHUVLJKWLQ
WKHDUHDVRIQHWZRUNRSHUDWLRQV 1(7236 LQIRUPDWLRQGLVVHPLQDWLRQDQG
LQIRUPDWLRQDVVXUDQFH )0 

6±7KH6 $VVLVWDQW&KLHIRI6WDII,QIRUPDWLRQ2SHUDWLRQV LVD
FRRUGLQDWLQJVWDIIRIILFHUUHVSRQVLEOHIRULQWHJUDWLRQRIQRQOHWKDOHIIHFWVWR
GHVWUR\RUGLVUXSWWKHLQIRUPDWLRQIORZRIWKUHDWIRUFHV+HDOVRRYHUVHHV
WKHSURWHFWLRQRIIULHQGO\LQIRUPDWLRQIURPWKUHDWIRUFHV )0 

6±7KH6 $VVLVWDQW&KLHIRI6WDII&LYLO0LOLWDU\2SHUDWLRQV VHUYHV
DVWKHFRRUGLQDWLQJVWDIIRIILFHUUHVSRQVLEOHIRUDGYLVLQJWKHFRPPDQGHURQ
WKHUHODWLRQVKLSEHWZHHQWKHFLYLOLDQSRSXODWLRQDQGPLOLWDU\RSHUDWLRQV
7KH6DGYLVHVWKHFRPPDQGHURQKRZWREHVWPLQLPL]HFLYLOLDQ
LQWHUIHUHQFHZLWKPLOLWDU\RSHUDWLRQV7KH6VHUYHVDVWKHSULPDU\VWDII
OLQNWRWKHFLYLOPLOLWDU\RSHUDWLRQVFHQWHU &02& WRPDLQWDLQOLDLVRQ
ZLWKRWKHU86JRYHUQPHQWDJHQFLHVLQGLJHQRXVSRSXODWLRQDQGLQVWLWXWLRQV
,3, 1*2VDQGLQWHUQDWLRQDORUJDQL]DWLRQVLQWKH$2 )0,)0
 

6HTXHO MRLQW ,QDFDPSDLJQDPDMRURSHUDWLRQWKDWIROORZVWKHFXUUHQW
PDMRURSHUDWLRQ,QDVLQJOHPDMRURSHUDWLRQDVHTXHOLVWKHQH[WSKDVH
3ODQVIRUDVHTXHODUHEDVHGRQWKHSRVVLEOHRXWFRPHV VXFFHVVVWDOHPDWH
RUGHIHDW DVVRFLDWHGZLWKWKHFXUUHQWRSHUDWLRQ -3 

6KDSLQJ2SHUDWLRQ$QRSHUDWLRQDWDQ\HFKHORQWKDWFUHDWHVDQG
SUHVHUYHVFRQGLWLRQVIRUWKHVXFFHVVRIWKHGHFLVLYHRSHUDWLRQ )0 

6LWXDWLRQDO$ZDUHQHVV 6$ ,PPHGLDWHNQRZOHGJHRIWKHFRQGLWLRQVRI
WKHRSHUDWLRQFRQVWUDLQHGJHRJUDSKLFDOO\DQGLQWLPH )0 

6LWXDWLRQ5HSRUW 6,75(3 $QXSGDWHWRDQH[LVWLQJUHSRUWLVVXHGDV
FRQGLWLRQVFKDQJHRUHYHQWVEHJLQWRXQIROG$6,75(3LVXVHGWRUHSRUWD
WDFWLFDOVLWXDWLRQIRUDVSHFLILFSHULRG7KHIRUPDWDQGSHULRGIRUUHSRUWLQJ
LVVSHFLILHGE\WKH%1623DQGFRQIRUPVWR67$1$* )0 

6LWXDWLRQ7HPSODWH 6,77(03 $VHULHVRISURMHFWLRQVWKDWSRUWUD\
EDVHGRQHQHP\GRFWULQHWKHPRVWSUREDEOHGLVSRVLWLRQDQGORFDWLRQRI
HQHP\IRUFHVZLWKLQFRQVWUDLQWVLPSRVHGE\ZHDWKHUDQGWHUUDLQ )0
 

6LWXDWLRQDO8QGHUVWDQGLQJ 68 7KHSURGXFWRIDSSO\LQJDQDO\VLVDQG
MXGJPHQWWRUHOHYDQWLQIRUPDWLRQWRGHWHUPLQHWKHUHODWLRQVKLSVDPRQJWKH
PLVVLRQYDULDEOHV 0(777& WRIDFLOLWDWHGHFLVLRQPDNLQJ )0 

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
6SHFLILF,QIRUPDWLRQ5HTXLUHPHQWV 6,5 6,5GHVFULEHWKH
LQIRUPDWLRQUHTXLUHGWRDQVZHUDOORUSDUWRIDQLQWHOOLJHQFHUHTXLUHPHQW
)0 

6SHFLILF2UGHUVDQG5HTXHVWV 625 7KHRUGHURUUHTXHVWWKDW
JHQHUDWHVSODQQLQJDQGH[HFXWLRQRIDFROOHFWLRQPLVVLRQRUDQDO\VLVRI
GDWDEDVHLQIRUPDWLRQ )0 

6SHFLILHG7DVN$WDVNVSHFLILFDOO\DVVLJQHGWRDXQLWE\LWV++4 )0
 

63275HSRUW 63275(3 $63275(3LVXWLOL]HGWRUHSRUWHQHP\
LQIRUPDWLRQ7KH63275(3IRUPDWLVVHWE\DKLJKHUFRPPDQGRULV
VXEPLWWHGFRQIRUPLQJWR67$1$*DQGXVLQJWKHPHPRU\DLG
6$/87(6L]H$FWLYLW\/RFDWLRQ8QLW7LPHDQG(TXLSPHQW )0
 

6WDQGLQJ2SHUDWLQJ3URFHGXUHV 623 $VHWRILQVWUXFWLRQVFRYHULQJ
WKRVHIHDWXUHVRIRSHUDWLRQVZKLFKOHQGWKHPVHOYHVWRDGHILQLWHRU
VWDQGDUGL]HGSURFHGXUHZLWKRXWORVVRIHIIHFWLYHQHVV7KHSURFHGXUHLV
DSSOLFDEOHXQOHVVRUGHUHGRWKHUZLVH6HHDOVR)0IRUIXUWKHU
LQIRUPDWLRQ )0 

6XSSRUW2SHUDWLRQV2IILFHU 632 ±6WDIIPHPEHUUHVSRQVLEOHIRU
RSHUDWLRQVWKDWHPSOR\$UP\IRUFHVWRDVVLVWFLYLODXWKRULWLHVIRUHLJQRU
GRPHVWLFDVWKH\SUHSDUHIRURUUHVSRQGWRFULVHVDQGUHOLHYHVXIIHULQJ6HH
DOVR)0IRUIXUWKHULQIRUPDWLRQ )0 

6XVWDLQLQJ2SHUDWLRQ$QRSHUDWLRQDWDQ\HFKHORQWKDWHQDEOHVWKH
GHFLVLYHRSHUDWLRQRUVKDSLQJRSHUDWLRQVE\JHQHUDWLQJDQGPDLQWDLQLQJ
FRPEDWSRZHU )0 

6\QFKURQL]DWLRQ0DWUL[$IRUPDWIRUWKHVWDIIWRUHFRUGWKHUHVXOWVRI
ZDUJDPLQJDQGV\QFKURQL]HWKH&2$DFURVVWLPHVSDFHDQGSXUSRVHLQ
UHODWLRQWRDQHQHP\&2$ )0 

7DFWLFDO2SHUDWLRQV&HQWHU 72& $SK\VLFDOJURXSLQJRIWKRVH
HOHPHQWVRIJHQHUDODQGVSHFLDOVWDIIFRQFHUQHGZLWKWKHFXUUHQWWDFWLFDO
RSHUDWLRQVDQGWKHWDFWLFDOVXSSRUWWKHUHRI )0 

7DFWLFDO6WDQGLQJ2SHUDWLQJ3URFHGXUHV 7$&623RU7623 ±$XQLW
VSHFLILF623GHDOLQJGLUHFWO\ZLWKWKHJHQHUDOXQLWFDSDELOLWLHVDQGWDFWLFV
$XQLWPD\DOVRKDYHDJHQHUDO623ZKLFKGHDOVZLWKJDUULVRQUHODWHG

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6




 
  
PDWWHUV7KHXQLW7$&623PXVWFRQIRUPWRDQ\DQGDOO++4623V
%&7& 

7DFWLFV7HFKQLTXHVDQG3URFHGXUHV 773 ±:ULWWHQFRPPHQWDU\
SDVVHGGRZQIURPSUHYLRXVSHUVRQQHOZKRKDYHJUHDWHUH[SHULHQFHDQG
ZLVGRPLQWKHVXEMHFWPDWHULDO )0 
ƒ 7DFWLFV7KHHPSOR\PHQWRIXQLWVLQFRPEDW,WLQFOXGHVWKHRUGHUHG
DUUDQJHPHQWDQGPDQHXYHURIXQLWVLQUHODWLRQWRHDFKRWKHUWKH
WHUUDLQDQGWKHHQHP\LQRUGHUWRWUDQVODWHSRWHQWLDOFRPEDWSRZHU
LQWRYLFWRULRXVEDWWOHVDQGHQJDJHPHQWV
ƒ 7HFKQLTXHV±7KHJHQHUDODQGGHWDLOHGPHWKRGVXVHGE\WURRSVDQGRU
FRPPDQGHUVWRSHUIRUPDVVLJQHGPLVVLRQVDQGIXQFWLRQVVSHFLILFDOO\
WKHPHWKRGVRIXVLQJHTXLSPHQWDQGSHUVRQQHO
ƒ 3URFHGXUHV±6WDQGDUGDQGGHWDLOHGFRXUVHVRIDFWLRQWKDWGHVFULEH
KRZWRSHUIRUPDWDVN

7DUJHW9DOXH$QDO\VLV 79$ 79$LVDQDQDO\WLFDOWRROWREHXVHGLQ
WKHWDUJHWLQJSURFHVV7KHKLJKSD\RIIWDUJHWOLVW +37/ LVDSURGXFWRI
79$'XULQJ79$WKHPDQHXYHUFRPPDQGHU
ƒ 3URYLGHVIRFXVIRUKLVWDUJHWDFTXLVLWLRQHIIRUW
ƒ ,GHQWLILHVSULRULWLHVIRUWKHHQJDJHPHQWRIHQHP\WDUJHWVWKDWZLOO
IDFLOLWDWHWKHVXFFHVVRIKLVPLVVLRQ
ƒ ,GHQWLILHVHIIHFWVFULWHULD
ƒ 3HUPLWVSODQQLQJIRULGHQWLILHGFRQWLQJHQFLHVEDVHGRQHQHP\RSWLRQV
DYDLODEOHZKHQWKHHQHP\RSHUDWLRQIDLOV
ƒ %HWWHUHVWLPDWHVIULHQGO\XQLWFDSDELOLWLHV )0 

7DUJHWHG$UHDRI,QWHUHVW 7$, 7KHJHRJUDSKLFDODUHDRUSRLQWDORQJD
PRELOLW\FRUULGRUZKHUHVXFFHVVIXOLQWHUGLFWLRQZLOOFDXVHWKHHQHP\WR
DEDQGRQDSDUWLFXODU&2$RUUHTXLUHKLPWRXVHVSHFLDOL]HGHQJLQHHU
VXSSRUWWRFRQWLQXH,WLVZKHUHWKHHQHP\PD\EHDFTXLUHGDQGHQJDJHGE\
IULHQGO\IRUFHV )0 

7DVN)RUFH 7) ±  $WHPSRUDU\JURXSLQJRIXQLWVXQGHURQH
FRPPDQGHUIRUPHGIRUWKHSXUSRVHRIFDUU\LQJRXWDVSHFLILFRSHUDWLRQRU
PLVVLRQ  DVHPLSHUPDQHQWRUJDQL]DWLRQRIXQLWVXQGHURQH
FRPPDQGHUIRUPHGIRUWKHSXUSRVHRIFDUU\LQJRXWDFRQWLQXLQJVSHFLILF
WDVNRU  DFRPSRQHQWRIDIOHHWRUJDQL]HGE\WKHFRPPDQGHURIDWDVN
IOHHWRUKLJKHUDXWKRULW\IRUWKHDFFRPSOLVKPHQWRIDVSHFLILFWDVNRUWDVNV
)0 
%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  

7DVN2UJDQL]DWLRQ $UP\ $WHPSRUDU\JURXSLQJRIIRUFHVGHVLJQHGWR
DFFRPSOLVKDSDUWLFXODUPLVVLRQ )0 

7DVN2UJDQL]LQJ $UP\ 7KHDFWRIGHVLJQLQJDQRSHUDWLQJIRUFH
VXSSRUWVWDIIRUORJLVWLFSDFNDJHRIVSHFLILFVL]HDQGFRPSRVLWLRQWRPHHWD
XQLTXHWDVNRUPLVVLRQ&KDUDFWHULVWLFVWRH[DPLQHZKHQWDVNRUJDQL]LQJ
WKHIRUFHLQFOXGHEXWDUHQRWOLPLWHGWRWUDLQLQJH[SHULHQFHHTXLSDJH
VXVWDLQDELOLW\RSHUDWLQJHQYLURQPHQWHQHP\WKUHDWDQGPRELOLW\)RU
$UP\IRUFHVLWLQFOXGHVDOORFDWLQJDYDLODEOHDVVHWVWRVXERUGLQDWH
FRPPDQGHUVDQGHVWDEOLVKLQJWKHLUFRPPDQGDQGVXSSRUWUHODWLRQVKLSV
)0 

7(55$%$6(3URGXFWV7(55$%$6(SURGXFWVFRPHIURP3&EDVHG
*RYHUQPHQW2IIWKHVKHOI *276 VRIWZDUHXVHGWRH[SORLWJHRVSDWLDOGDWD
DQGSURYLGH7DFWLFDO'HFLVLRQ$LGV 7'$ 7KHVRIWZDUHDOORZVXVHUVDW
WKHWDFWLFDOOHYHOWRYLVXDOO\GLVSOD\DQGDQDO\]HWHUUDLQGDWDIRUPLVVLRQ
SODQQLQJZKHQWRSRJUDSKLFDVVHWVDUHXQDYDLODEOH )0 

7HUUDLQ$QDO\VLV7KHFROOHFWLRQDQDO\VLVHYDOXDWLRQDQGLQWHUSUHWDWLRQ
RIJHRJUDSKLFLQIRUPDWLRQRQWKHQDWXUDODQGPDQPDGHIHDWXUHVRIWKH
WHUUDLQFRPELQHGZLWKRWKHUUHOHYDQWIDFWRUVWRSUHGLFWWKHHIIHFWRIWKH
WHUUDLQRQPLOLWDU\RSHUDWLRQV )0 

7LPH3KDVH/LQH 73/ $OLQHXVHGWRUHSUHVHQWWKHPRYHPHQWRIIRUFHV
RUWKHIORZRIDQRSHUDWLRQRYHUWLPH,WXVXDOO\UHSUHVHQWVWKHORFDWLRQRI
IRUFHVDWYDULRXVLQFUHPHQWVRIWLPHVXFKDVOLQHVWKDWVKRZXQLWORFDWLRQV
DWKRXULQWHUYDOV73/VVKRXOGDFFRXQWIRUWKHHIIHFWVRIWKHEDWWOHILHOG
HQYLURQPHQWDQGWKHDQWLFLSDWHGHIIHFWVRIFRQWDFWZLWKRWKHUIRUFHV)RU
H[DPSOH73/VGHSLFWLQJWKUHDWPRYHPHQWWKURXJKDQDUHDRFFXSLHGE\
IULHQGO\IRUFHVVKRXOGXVHPRYHPHQWUDWHVEDVHGRQDIRUFHLQFRQWDFWZLWK
WKHHQHP\UDWKHUWKDQFRQYR\PRYHPHQWVSHHGV )0 

7URRS/HDGLQJ3URFHGXUHV 7/3 7/3LVWKHG\QDPLFSURFHVVE\
ZKLFKDFRPPDQGHUUHFHLYHVDPLVVLRQGHYHORSVDSODQDQGSUHSDUHVIRU
DQRSHUDWLRQ7URRS/HDGLQJ3URFHGXUHVDUHXVXDOO\IROORZHGDWFRPSDQ\
OHYHODQGEHORZZKHUHDVWKH0'03LVXWLOL]HGDW%1OHYHODQGDERYH
)0 

:DUILJKWLQJ)XQFWLRQ :)) $JURXSRIWDVNVDQGV\VWHPV SHRSOH
RUJDQL]DWLRQVLQIRUPDWLRQDQGSURFHVVHV XQLWHGE\DFRPPRQSXUSRVH
WKDWFRPPDQGHUVXVHWRDFFRPSOLVKPLVVLRQVDQGWUDLQLQJREMHFWLYHV
)RUPHUO\UHIHUUHGWRDVEDWWOHILHOGRSHUDWLQJV\VWHPV %26  )0 

%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6


 
  
:DUJDPLQJ$VWHSE\VWHSSURFHVVRIDFWLRQUHDFWLRQDQG
FRXQWHUDFWLRQIRUYLVXDOL]LQJWKHH[HFXWLRQRIHDFKIULHQGO\&2$LQ
UHODWLRQWRHQHP\&2$VDQGUHDFWLRQV,WH[SORUHVWKHSRVVLEOHEUDQFKHV
DQGVHTXHOVWRWKHSULPDU\SODQUHVXOWLQJLQDILQDOSODQDQGGHFLVLRQSRLQWV
IRUFULWLFDODFWLRQV )0 

:DUQLQJ2UGHU :$512 ±  $SUHOLPLQDU\QRWLFHRIDQRUGHURU
DFWLRQZKLFKLVWRIROORZ  $FULVLVDFWLRQSODQQLQJGLUHFWLYHLVVXHGE\
WKH&KDLUPDQRIWKH-RLQW&KLHIVRI6WDIIWKDWLQLWLDWHVWKHGHYHORSPHQWDQG
HYDOXDWLRQRIFRXUVHVRIDFWLRQE\DVXSSRUWHGFRPPDQGHUDQGUHTXHVWV
WKDWDFRPPDQGHU¶VHVWLPDWHEHVXEPLWWHG  $SODQQLQJGLUHFWLYHWKDW
GHVFULEHVWKHVLWXDWLRQDOORFDWHVIRUFHVDQGUHVRXUFHVHVWDEOLVKHV
FRPPDQGUHODWLRQVKLSVSURYLGHVRWKHULQLWLDOSODQQLQJJXLGDQFHDQG
LQLWLDWHVVXERUGLQDWHXQLWPLVVLRQSODQQLQJ )0 


%DWWOH&RPPDQG7UDLQLQJ&HQWHU %&7&   )RUW/HDYHQZRUWK.6