Harman Becker Automotive Systems NTG6H Automotive Headunit FM, AM, DAB, USB, Bluetooth, WLAN and GNSS User Manual 04 UM car part1

Harman Becker Automotive Systems Automotive Headunit FM, AM, DAB, USB, Bluetooth, WLAN and GNSS 04 UM car part1

$6\PEROV,QWKLV2ZQHUV0DQXDO\RXZLOOILQGWKHIROORZƃLQJV\PEROV&'$1*(5'DQJHUGXHWRQRWREVHUYLQJWKHZDUQLQJQRWLFHV:DUQLQJQRWLFHVGUDZ\RXUDWWHQWLRQWRKD]ƃDUGVWKDWPD\HQGDQJHU\RXUKHDOWKRUOLIHRUWKHKHDOWKRUOLIHRIRWKHUV#3OHDVHREVHUYHWKHZDUQLQJQRWLFHVLQWKLV2ZQHUV0DQXDO+(19,5210(17$/127((QYLURQPHQWDOGDPDJHGXHWRIDLOXUHWRREVHUYHHQYLƃURQPHQWDOQRWHV(QYLURQPHQWDOQRWHVLQFOXGHLQIRUPDWLRQRQHQYLURQPHQWDOO\UHVSRQVLEOHEHKDYLRXURUHQYLURQPHQWDOO\UHVSRQVLEOHGLVSRVDO#2EVHUYHHQYLURQPHQWDOQRWHV*127('DPDJHWRSURSHUW\GXHWRIDLOXUHWRREVHUYHQRWHVRQPDWHULDOGDPDJH1RWHVRQPDWHULDOGDPDJHLQIRUP\RXRIULVNVZKLFKPD\OHDGWR\RXUYHKLFOHEHLQJGDPDJHG#2EVHUYHQRWHVRQPDWHULDOGDPDJH%8VHIXOLQVWUXFWLRQVRUIXUWKHULQIRUPDWLRQWKDWFRXOGEHKHOSIXOWR\RX,QVWUXFWLRQ{SDJH )XUWKHULQIRUPDWLRQRQDWRSLF'LVSOD\ ,QIRUPDWLRQLQWKHPXOWLIXQFWLRQGLVƃSOD\PXOWLPHGLDGLVSOD\+LJKHVWPHQXOHYHOZKLFKLVWREHVHOHFWHGLQWKHPXOWLPHGLDV\VWHP&RUUHVSRQGLQJVXEPHQXVZKLFKDUHWREHVHOHFWHGLQWKHPXOWLPHGLDV\VƃWHP 0DUNVDFDXVH$

$:HOFRPHWRWKHZRUOGRI0HUFHGHV%HQ]%HIRUH\RXILUVWGULYHRIIUHDGWKLV2ZQHUV0DQƃXDOFDUHIXOO\DQGIDPLOLDULVH\RXUVHOIZLWK\RXUYHKLFOH)RU\RXURZQVDIHW\DQGDORQJHUYHKLFOHOLIHIROORZWKHLQVWUXFWLRQVDQGZDUQLQJQRWLFHVLQWKLVPDQXDO'LVUHJDUGLQJWKHPPD\OHDGWRGDPDJHWRWKHYHKLFOHRUSHUVRQDOLQMXU\7KHHTXLSPHQWRUPRGHOGHVLJQDWLRQRI\RXUYHKLFOHPD\YDU\DFFRUGLQJWR=PRGHO=RUGHU=QDWLRQDOYHUVLRQ=DYDLODELOLW\7KHLOOXVWUDWLRQVLQWKLVPDQXDOVKRZDOHIWKDQGGULYHYHKLFOH2QULJKWKDQGGULYHYHKLFOHVWKHOD\RXWRIFRPSRQHQWVDQGFRQWUROVGLIIHUVDFFRUGLQJO\0HUFHGHV%HQ]LVFRQVWDQWO\XSGDWLQJLWVYHKLƃFOHVWRWKHVWDWHRIWKHDUW0HUFHGHV%HQ]WKHUHIRUHUHVHUYHVWKHULJKWWRLQWURGXFHFKDQJHVLQWKHIROORZLQJDUHDV=GHVLJQ=HTXLSPHQW=WHFKQLFDOIHDWXUHV7KHHTXLSPHQWLQ\RXUYHKLFOHPD\WKHUHIRUHGLIƃIHUIURPWKDWVKRZQLQWKHGHVFULSWLRQVDQGLOOXVƃWUDWLRQV7KHIROORZLQJDUHLQWHJUDOSDUWVRIWKHYHKLFOH='LJLWDO2ZQHUV0DQXDO=3ULQWHG2ZQHUV0DQXDO=6HUYLFH%RRNOHW=(TXLSPHQWGHSHQGHQW6XSSOHPHQWV.HHSWKHVHGRFXPHQWVLQWKHYHKLFOHDWDOOWLPHV,I\RXVHOOWKHYHKLFOHDOZD\VSDVVDOORIWKHGRFXPHQWVRQWRWKHQHZRZQHU= !C$

$$WDJODQFH 2YHUYLHZRIWKHFRFNSLW 2YHUYLHZRIZDUQLQJDQGLQGLFDWRUODPSV 2YHUYLHZRIWKHRYHUKHDGFRQWUROSDQHO 2YHUYLHZRIWKHGRRUFRQWUROSDQHODQGVHDWDGMXVWPHQW 2YHUYLHZRIHPHUJHQFLHVDQGEUHDNGRZQV 'LJLWDO2ZQHUV0DQXDO &DOOLQJXSWKH'LJLWDO2ZQHUV0DQXDO *HQHUDOQRWHV 3URWHFWLRQRIWKHHQYLURQPHQW 7DNHEDFNRIHQGRIOLIHYHKLFOHV 0HUFHGHV%HQ]*HQXLQH3DUWV 2ZQHUV0DQXDO 2SHUDWLQJVDIHW\ 'HFODUDWLRQRI&RQIRUPLW\ 'LDJQRVWLFVFRQQHFWLRQ 4XDOLILHGVSHFLDOLVWZRUNVKRS 9HKLFOHUHJLVWUDWLRQ &RUUHFWXVHRIWKHYHKLFOH ,PSOLHGZDUUDQW\ 45FRGHIRUUHVFXHFDUG 9HKLFOHGDWDVWRUDJH &RS\ULJKW 2FFXSDQWVDIHW\ 5HVWUDLQWV\VWHP 6HDWEHOWV $LUEDJV 35(6$)(V\VWHP &KLOGUHQLQWKHYHKLFOH 1RWHVRQSHWVLQWKHYHKLFOH 2SHQLQJDQGFORVLQJ .H\ 'RRUV /RDGFRPSDUWPHQW 6LGHZLQGRZV 6OLGLQJVXQURRI $QWLWKHIWSURWHFWLRQ 6HDWVDQGVWRZLQJ 1RWHVRQWKHFRUUHFWGULYHUVVHDWSRVLWLRQ 6HDWV 6WHHULQJZKHHO 8VLQJWKHPHPRU\IXQFWLRQ 6WRZDJHDUHDV &XSKROGHUV $VKWUD\DQGFLJDUHWWHOLJKWHU 6RFNHWV :LUHOHVVFKDUJLQJRIWKHPRELOHSKRQHDQGFRQQHFWLRQZLWKWKHH[WHULRUDHULDO )LWWLQJUHPRYLQJWKHIORRUPDWV /LJKWDQGVLJKW ([WHULRUOLJKWLQJ ,QWHULRUOLJKWLQJ &KDQJLQJEXOEVRQO\IRUYHKLFOHVZLWKKDORJHQKHDGODPSV :LQGVFUHHQZLSHUVDQGZLQGVFUHHQZDVKHUV\VWHP 0LUURUV 2SHUDWLQJWKHVXQYLVRUV &OLPDWHFRQWURO 2YHUYLHZRIFOLPDWHFRQWUROV\VWHPV 2SHUDWLQJWKHFOLPDWHFRQWUROV\VWHP &RQWHQWV$

$'ULYLQJDQGSDUNLQJ 'ULYLQJ '<1$0,&6(/(&7VZLWFK $XWRPDWLFWUDQVPLVVLRQ 5HIXHOOLQJ 3DUNLQJ 'ULYLQJDQGGULYLQJVDIHW\V\VWHPV 7UDLOHUKLWFK %LF\FOHUDFNIXQFWLRQ 9HKLFOHWRZLQJLQVWUXFWLRQV ,QVWUXPHQW'LVSOD\DQGRQERDUGFRPSXWHU ,QVWUXPHQWGLVSOD\RYHUYLHZ 2YHUYLHZRIWKHEXWWRQVRQWKHVWHHULQJZKHHO 2SHUDWLQJWKHRQERDUGFRPSXWHU 6HWWLQJWKHPXOWLIXQFWLRQGLVSOD\ 2YHUYLHZRIGLVSOD\VRQWKHPXOWLIXQFƃWLRQGLVSOD\ $GMXVWLQJWKHLQVWUXPHQWOLJKWLQJ 0HQXVDQGVXEPHQXV +HDGXS'LVSOD\ /,1*8$7521,& 1RWHVRQRSHUDWLQJVDIHW\ 2SHUDWLRQ 8VLQJ/,1*8$7521,&HIIHFWLYHO\ (VVHQWLDOYRLFHFRPPDQGV 0%8;0HUFHGHV%HQ]8VHU([SHULHQFH 2YHUYLHZDQGRSHUDWLRQ 6\VWHPVHWWLQJV 1DYLJDWLRQ 7HOHSKRQH 2QOLQHDQG,QWHUQHWIXQFWLRQV 0HGLD 5DGLR 6RXQG 0DLQWHQDQFHDQGFDUH $66<673/86VHUYLFHLQWHUYDOGLVSOD\ (QJLQHFRPSDUWPHQW &OHDQLQJDQGFDUH %UHDNGRZQDVVLVWDQFH (PHUJHQF\ )ODWW\UH %DWWHU\YHKLFOH 7RZVWDUWLQJRUWRZLQJDZD\ (OHFWULFDOIXVHV :KHHOVDQGW\UHV 1RWHVRQQRLVHRUXQXVXDOKDQGOLQJFKDUƃDFWHULVWLFV 5HJXODUFKHFNLQJRIZKHHOVDQGW\UHV 1RWHVRQVQRZFKDLQV 7\UHSUHVVXUH :KHHOFKDQJH (PHUJHQF\VSDUHZKHHO 7HFKQLFDOGDWD 1RWHVRQWHFKQLFDOGDWD 2QERDUGHOHFWURQLFV 9HKLFOHLGHQWLILFDWLRQSODWH9,1DQGHQJLQHQXPEHU 2SHUDWLQJIOXLGV 9HKLFOHGDWD 7UDLOHUKLWFK &RQWHQWV $

$'LVSOD\PHVVDJHVDQGZDUQLQJLQGLƃFDWRUODPSV 'LVSOD\PHVVDJHV :DUQLQJDQGLQGLFDWRUODPSV ,QGH[ &RQWHQWV$

/HIWKDQGGULYHYHKLFOHV$WDJODQFH²2YHUYLHZRIWKHFRFNSLW

$6WHHULQJZKHHOJHDUVKLIWSDGGOHV ƭ&RPELQDWLRQVZLWFK ƭ',5(&76(/(&7OHYHU ƭ6WDUWVWRSEXWWRQ ƭ0XOWLPHGLDV\VWHPGLVSOD\ ƭ&OLPDWHFRQWUROV\VWHPV ƭ+D]DUGZDUQLQJOLJKWV ƭ3$66(1*(5$,5%$*LQGLFDWRUODPSV ƭ*ORYHER[ ƭ$6WRZDJHFRPSDUWPHQW ƭ%&XSKROGHU ƭ&&RQWURONQRE6ZLWFKHVWKHVRXQGDQGYROXPHRQDQGRII ƭ6ZLWFKHVWKHPXOWLPHGLDV\VWHPRQDQGRII ƭ'&DOOVXSQDYLJDWLRQ ƭ(&DOOVXSWKHUDGLR ƭ&DOOVXSPHGLD ƭ)&DOOVXSWKHWHOHSKRQH ƭ*&DOOVXSIDYRXULWHV ƭ+&DOOVXSYHKLFOHIXQFWLRQV ƭ,$FWLYH3DUNLQJ$VVLVW ƭ-'<1$0,&6(/(&7VZLWFK ƭ.&RQWUROHOHPHQWVIRUWKHPXOWLPHGLDV\VWHP ƭ/&RQWUROSDQHOIRUWKHPXOWLPHGLDV\VWHP ƭ0$GMXVWVWKHVWHHULQJZKHHO ƭ1&RQWUROSDQHOIRU2QERDUGFRPSXWHU ƭ2SHUDWLQJFUXLVHFRQWURORUWKHYDULDEOHOLPLWHU ƭ2SHUDWLQJ$FWLYH'LVWDQFH$VVLVW',67521,& ƭ2'LDJQRVWLFVFRQQHFWLRQ ƭ38QORFNVWKHERQQHW ƭ4(OHFWULFSDUNLQJEUDNH ƭ5/LJKWVZLWFK ƭ$WDJODQFH²2YHUYLHZRIWKHFRFNSLW $

6WDQGDUGFRFNSLW$WDJODQFH²2YHUYLHZRIZDUQLQJDQGLQGLFDWRUODPSV

$%$%6PDOIXQFWLRQLQJ ƭ>=7XUQVLJQDOOLJKW ƭw7\UHSUHVVXUHPRQLWRULQJV\VWHP ƭ6SHHGRPHWHU ƭ0XOWLIXQFWLRQGLVSOD\ ƭ=(OHFWULFDOIDXOW ƭº'LVWDQFHZDUQLQJ ƭM%UDNHVUHG ƭM%UDNHV\HOORZ ƭ$$(OHFWULFSDUNLQJEUDNHDSSOLHGUHG ƭ%$(OHFWULFSDUNLQJEUDNH\HOORZ ƭ&('LHVHOHQJLQHSUHJORZ'¹(QJLQHGLDJQRVWLFV ƭ(»(632)) ƭå(63ƭ)u5HVWUDLQWV\VWHP ƭ*^5HDUIRJOLJKW ƭ+W0DLQEHDP ƭX'LSSHGEHDP ƭ`6WDQGLQJOLJKWV ƭ,)XHOOHYHOGLVSOD\-Ô)XHOUHVHUYHZLWKIXHOILOOHUFDSORFDWLRQLQGLFDWRUƭ.Ì3RZHUDVVLVWHGVWHHULQJPDOIXQFWLRQLQJ ƭ/é6HDWEHOWQRWIDVWHQHG ƭ0x7UDLOHUKLWFKQRWRSHUDWLRQDO ƭ$WDJODQFH²2YHUYLHZRIZDUQLQJDQGLQGLFDWRUODPSV $

:LGHVFUHHQFRFNSLW $WDJODQFH²2YHUYLHZRIZDUQLQJDQGLQGLFDWRUODPSV

$6SHHGRPHWHU ƭ>=7XUQVLJQDOOLJKW ƭx7UDLOHUKLWFKQRWRSHUDWLRQDO ƭ0XOWLIXQFWLRQGLVSOD\ ƭu5HVWUDLQWV\VWHP ƭ5HYFRXQWHU ƭ»(632)) ƭå(63ƭ^5HDUIRJOLJKW ƭW0DLQEHDP ƭX'LSSHGEHDP ƭ`6WDQGLQJOLJKWV ƭ$¬&RRODQWWRRKRWFROG ƭ%&RRODQWWHPSHUDWXUHGLVSOD\ ƭ&$(OHFWULFSDUNLQJEUDNH\HOORZ ƭ'M%UDNHV\HOORZ ƭ(=(OHFWULFDOIDXOW ƭ)º'LVWDQFHZDUQLQJ ƭ*%$%6PDOIXQFWLRQLQJ ƭ+Ì3RZHUDVVLVWHGVWHHULQJPDOIXQFWLRQLQJ ƭ,w7\UHSUHVVXUHPRQLWRULQJV\VWHP ƭ-('LHVHOHQJLQHSUHJORZ.Ô)XHOUHVHUYHZLWKIXHOILOOHUFDSORFDWLRQLQGLFDWRUƭ/)XHOOHYHOGLVSOD\0$(OHFWULFSDUNLQJEUDNHDSSOLHGUHG ƭ1é6HDWEHOWQRWIDVWHQHG ƭ2M%UDNHVUHG ƭ3¹(QJLQHGLDJQRVWLFV ƭ$WDJODQFH²2YHUYLHZRIZDUQLQJDQGLQGLFDWRUODPSV $

 $WDJODQFH²2YHUYLHZRIWKHRYHUKHDGFRQWUROSDQHO

$6XQYLVRUV ƭ=6ZLWFKHVWKHOHIWKDQGUHDGLQJODPSRQRIIƭ36ZLWFKHVWKHDXWRPDWLFOLJKWLQJFRQWURORQRIIƭJ6ZLWFKHVWKHIURQWLQWHULRUOLJKWLQJRQRII ƭB6ZLWFKHVWKHUHDULQWHULRUOLJKWLQJRQRII ƭ=6ZLWFKHVWKHULJKWKDQGUHDGLQJODPSRQRIIƭ6HUYLFHFDOOEXWWRQ0HUFHGHVPHFRQQHFW ƭ626HPHUJHQF\FDOOV\VWHP0HUFHGHV%HQ]HPHUJHQF\FDOOV\VWHPƭW2SHQVFORVHVWKHSDQRUDPLFVOLGLQJVXQƃURRIƭ2SHQVFORVHVWKHUROOHUVXQEOLQGV ƭ$6SHFWDFOHVFRPSDUWPHQW ƭ%,QVLGHUHDUYLHZPLUURU ƭ$WDJODQFH²2YHUYLHZRIWKHRYHUKHDGFRQWUROSDQHO $

 $WDJODQFH²2YHUYLHZRIWKHGRRUFRQWUROSDQHODQGVHDWDGMXVWPHQW

$8VLQJWKHPHPRU\IXQFWLRQ ƭ$GMXVWVWKHVHDWVHOHFWULFDOO\ ƭ6ZLWFKHVWKHVHDWKHDWHURQRII ƭ6ZLWFKHVWKHVHDWYHQWLODWLRQRQRII ƭ76/RFNVXQORFNVWKHYHKLFOH ƭ2SHQVWKHGRRU ƭ2SHUDWHVWKHRXWVLGHPLUURUV ƭb2SHQVFORVHVWKHULJKWVLGHZLQGRZ ƭb2SHQVFORVHVWKHUHDUULJKWVLGHZLQGRZ ƭ$2YHUULGHIHDWXUHIRUWKHUHDUVLGHZLQGRZV ƭ%b2SHQVFORVHVWKHUHDUOHIWVLGHZLQGRZ ƭ&b2SHQVFORVHVWKHOHIWVLGHZLQGRZ ƭ'$GMXVWVWKHKHDGUHVWUDLQWV ƭ(6HDWDGMXVWPHQWXVLQJWKHPXOWLPHGLDV\VWHP ƭ)$GMXVWVWKHVHDWEDFNUHVWLQFOLQDWLRQ ƭ*$GMXVWVWKHVHDWKHLJKW ƭ+$GMXVWVWKHVHDWFXVKLRQLQFOLQDWLRQ ƭ,6HWVWKHVHDWIRUHDQGDIWDGMXVWPHQW ƭ-$GMXVWVWKHVHDWFXVKLRQOHQJWK ƭ$WDJODQFH²2YHUYLHZRIWKHGRRUFRQWUROSDQHODQGVHDWDGMXVWPHQW $

 $WDJODQFH²2YHUYLHZRIHPHUJHQFLHVDQGEUHDNGRZQV

$:KDWWRGRLQWKHHYHQWRIDQDFFLGHQW6DIHW\YHVWV ƭ)LUHH[WLQJXLVKHU ƭ%XWWRQVIRUWKH626HPHUJHQF\FDOOV\VWHPDQGEUHDNGRZQDVVLVWDQFHƭ+D]DUGZDUQLQJOLJKWV ƭ*ORYHER[ ƭ6WDUWLQJDVVLVWDQFH ƭ&KHFNLQJDQGWRSSLQJXSRSHUDWLQJIOXLGV ƭ7RZVWDUWLQJDQGWRZLQJDZD\ ƭ)ODWW\UH ƭ$45FRGHVIRUDFFHVVLQJWKHUHVFXHFDUG ƭ%7RZVWDUWLQJDQGWRZLQJDZD\ ƭ&:DUQLQJWULDQJOH ƭ'7,5(),7NLW ƭ()LUVWDLGNLWVRIWVLGHG ƭ))XHOILOOHUIODSZLWKLQVWUXFWLRQODEHOVIRUW\UHSUHVVXUHIXHOW\SHDQG45FRGHVIRUDFFHVVLQJWKHUHVFXHFDUGƭ$WDJODQFH²2YHUYLHZRIHPHUJHQFLHVDQGEUHDNGRZQV $

$&DOOLQJXSWKH'LJLWDO2ZQHUV0DQXDO0XOWLPHGLDV\VWHP,9HKLFOHLQIR.2ZQHUV0DQXDO$OWHUQDWLYHO\\RXKDYHWKHIROORZLQJSRVVLELOLWLHV=/,1*8$7521,&FDOOXSWKH'LJLWDO2ZQHUV0DQXDOYLDWKHYRLFHFRQWUROV\VWHP=0XOWLIXQFWLRQGLVSOD\FDOOXSEULHILQIRUPDƃWLRQIURPWKH'LJLWDO2ZQHUV0DQXDODVPHVƃVDJHVLQWKHPXOWLIXQFWLRQGLVSOD\DOVRGXUƃLQJWKHMRXUQH\=&RQWH[WLQWURGXFWLRQRSHQWKHFRUUHVSRQGƃLQJFRQWH[WLQWKH'LJLWDO2ZQHUV0DQXDOE\SUHVVLQJWKHPHQXSDWKLQSXWRIWKHPXOWLPHƃGLDV\VWHP%$IXQFWLRQIURPWKHPXOWLPHGLDV\VWHPFDQDOVREHFDOOHGXSIURPWKH'LJLWDO2ZQHUV0DQXDOXVLQJWKHFRQWH[WLQWURGXFWLRQ7KH'LJLWDO2ZQHUV0DQXDOGHVFULEHVWKHIXQFƃWLRQDQGRSHUDWLRQRI=WKHYHKLFOH=WKHPXOWLPHGLDV\VWHP)RUVDIHW\UHDVRQVWKH'LJLWDO2ZQHUV0DQXDOLVGHDFWLYDWHGZKLOHGULYLQJ#6HOHFWRQHRIWKHIROORZLQJPHQXLWHPVLQWKH'LJLWDO2ZQHUV0DQXDO=6HDUFKVHDUFKIRUNH\ZRUGVLQRUGHUWRILQGTXLFNDQVZHUVWRTXHVWLRQVDERXWWKHRSHUDƃWLRQRIWKHYHKLFOH=4XLFNVWDUWILQGLQIRUPDWLRQWKDWSUHSDUHV\RXIRUFHUWDLQHYHU\GD\VLWXDWLRQVZLWK\RXUYHKLFOH=7LSVILQGWKHILUVWVWHSVWRZDUGVVHWWLQJXS\RXUYHKLFOH=$QLPDWLRQVZDWFKDQLPDWLRQVRIVHOHFWHGYHKLFOHIXQFWLRQV=0HVVDJHVUHFHLYHDGGLWLRQDOLQIRUPDWLRQDERXWWKHPHVVDJHVLQWKHPXOWLIXQFWLRQGLVƃSOD\=%RRNPDUNVUHFHLYHDFFHVVWR\RXUSHUVRQƃDOO\VDYHGERRNPDUNV=/DQJXDJHVHOHFWWKHODQJXDJHIRUWKH'LJLWDO2ZQHUV0DQXDO%DFN$GGERRNPDUNV3LFWXUH 'LJLWDO2ZQHUV0DQXDO$

&RQWHQWVVHFWLRQ0HQX6RPHVHFWLRQVLQWKH'LJLWDO2ZQHUV0DQXDOHJZDUQLQJQRWHVFDQEHRSHQHGDQGFORVHG%7KH2ZQHUV0DQXDOFDQDOVREHIRXQGLQWKH0HUFHGHV%HQ]*XLGHV$SSLQDOOFRPPRQ$SS6WRUHV'LJLWDO2ZQHUV0DQXDO 

$3URWHFWLRQRIWKHHQYLURQPHQW+(19,5210(17$/127((QYLURQPHQWDOGDPDJHGXHWRRSHUDWLQJFRQGLWLRQVDQGSHUVRQDOGULYLQJVW\OH7KHSROOXWDQWHPLVVLRQRI\RXUYHKLFOHLVGLUHFWO\UHODWHGWRWKHZD\\RXRSHUDWH\RXUYHKLFOH<RXFDQKHOSWRSURWHFWWKHHQYLURQPHQWE\RSHUDWLQJ\RXUYHKLFOHLQDQHQYLURQPHQWDOO\UHVSRQVLEOHPDQQHU3OHDVHREVHUYHWKHIROƃORZLQJUHFRPPHQGDWLRQVRQRSHUDWLQJFRQGLƃWLRQVDQGSHUVRQDOGULYLQJVW\OH2SHUDWLQJFRQGLWLRQV#PDNHVXUHWKDWWKHW\UHSUHVVXUHLVFRUƃUHFW#GRQRWFDUU\DQ\XQQHFHVVDU\ZHLJKWHJURRIOXJJDJHUDFNVRQFH\RXQRORQJHUQHHGWKHP#DGKHUHWRWKHVHUYLFHLQWHUYDOVDUHJXODUO\VHUYLFHGYHKLFOHZLOOFRQWULEƃXWHWRHQYLURQPHQWDOSURWHFWLRQ#DOZD\VKDYHPDLQWHQDQFHZRUNFDUULHGRXWDWDTXDOLILHGVSHFLDOLVWZRUNVKRS3HUVRQDOGULYLQJVW\OH#GRQRWGHSUHVVWKHDFFHOHUDWRUSHGDOZKHQVWDUWLQJWKHHQJLQH#GRQRWZDUPXSWKHHQJLQHZKLOHWKHYHKLFOHLVVWDWLRQDU\#GULYHFDUHIXOO\DQGPDLQWDLQDVXLWDEOHGLVWDQFHIURPWKHYHKLFOHLQIURQW#DYRLGIUHTXHQWVXGGHQDFFHOHUDWLRQDQGEUDNLQJ#FKDQJHJHDULQJRRGWLPHDQGXVHHDFKJHDURQO\XSWRÃRILWVPD[LPXPHQJLQHVSHHG#VZLWFKRIIWKHHQJLQHLQVWDWLRQDU\WUDIƃILFHJE\XVLQJWKH(&2VWDUWVWRSIXQFWLRQ#GULYHIXHOHIILFLHQWO\7DNHEDFNRIHQGRIOLIHYHKLFOHV(8FRXQWULHVRQO\0HUFHGHV%HQ]ZLOOWDNHEDFN\RXUHQGRIOLIHYHKLFOHIRUHQYLURQPHQWIULHQGO\GLVSRVDOLQDFFRUGDQFHZLWKWKH(XURSHDQ8QLRQ(8(QGRI/LIH9HKLFOHV'LUHFWLYH$QHWZRUNRIYHKLFOHWDNHEDFNSRLQWVDQGGLVƃPDQWOHUVKDVEHHQHVWDEOLVKHGIRU\RXWRUHWXUQ\RXUYHKLFOH<RXFDQOHDYHLWDWDQ\RIWKHVHSRLQWVIUHHRIFKDUJH7KLVPDNHVDQLPSRUWDQWFRQWULEXWLRQWRFORVLQJWKHUHF\FOLQJFLUFOHDQGFRQVHUYLQJUHVRXUFHV)RUIXUWKHULQIRUPDWLRQDERXWWKHUHF\FOLQJDQGGLVSRVDORIHQGRIOLIHYHKLFOHVDQGWKHWDNHEDFNFRQGLWLRQVSOHDVHYLVLWWKHQDWLRQDO0HUFHGHV%HQ]ZHEVLWHIRU\RXUFRXQWU\ *HQHUDOQRWHV$

$0HUFHGHV%HQ]*HQXLQH3DUWV+(19,5210(17$/127((QYLURQPHQWDOGDPDJHFDXVHGE\QRWXVLQJUHF\FOHGUHFRQGLWLRQHGFRPSRQHQWV'DLPOHU$*RIIHUVUHF\FOHGUHFRQGLWLRQHGFRPSRQHQWVDQGSDUWVZLWKWKHVDPHTXDOLW\DVQHZSDUWV7KHVDPHHQWLWOHPHQWIURPWKHLPSOLHGZDUUDQW\LVYDOLGDVIRUQHZSDUWV#8VHUHF\FOHGUHFRQGLWLRQHGFRPSRƃQHQWVDQGSDUWVIURP'DLPOHU$**127(,PSDLUPHQWRIWKHRSHUDWLQJHIILƃFLHQF\RIWKHUHVWUDLQWV\VWHPVIURPLQVWDOOLQJDFFHVVRULHVRUIURPUHSDLUVRUZHOGLQJ$LUEDJVDQGVHDWEHOWWHQVLRQHUVDVZHOODVFRQWUROXQLWVDQGVHQVRUVIRUWKHUHVWUDLQWV\VWHPVPD\EHLQVWDOOHGLQWKHIROORZLQJDUHDVRI\RXUYHKLFOH='RRUV='RRUSLOODUV='RRUVLOOV=6HDWV=&RFNSLW=,QVWUXPHQWFOXVWHU=&HQWUHFRQVROH#'RQRWLQVWDOODFFHVVRULHVVXFKDVDXGLRV\VWHPVLQWKHVHDUHDV#'RQRWFDUU\RXWUHSDLUVRUZHOGLQJ#+DYHDFFHVVRULHVUHWURILWWHGDWDTXDOLƃILHGVSHFLDOLVWZRUNVKRS<RXFRXOGMHRSDUGLVHWKHRSHUDWLQJVDIHW\RI\RXUYHKLFOHLI\RXXVHSDUWVW\UHVDQGZKHHOVDVZHOODVDFFHVVRULHVUHOHYDQWWRVDIHW\ZKLFKKDYHQRWEHHQDSSURYHGE\0HUFHGHV%HQ]6DIHW\UHOHƃYDQWV\VWHPVHJWKHEUDNHV\VWHPPD\PDOƃIXQFWLRQ2QO\XVH0HUFHGHV%HQ]*HQXLQH3DUWVRUSDUWVRIHTXDOTXDOLW\2QO\XVHW\UHVZKHHOVDQGDFFHVVRU\SDUWVWKDWKDYHEHHQVSHFLILFDOO\DSSURYHGIRU\RXUYHKLFOHPRGHO0HUFHGHV%HQ]WHVWVJHQXLQHSDUWVDQGFRQYHUƃVLRQSDUWVDQGDFFHVVRU\SDUWVWKDWKDYHEHHQVSHFLILFDOO\DSSURYHGIRU\RXUYHKLFOHPRGHOIRUWKHLUUHOLDELOLW\VDIHW\DQGVXLWDELOLW\'HVSLWHRQJRLQJPDUNHWUHVHDUFK0HUFHGHV%HQ]LVXQDEOHWRDVVHVVRWKHUSDUWV0HUFHGHV%HQ]WKHUHIRUHDFFHSWVQRUHVSRQVLELOLW\IRUWKHXVHRIVXFKSDUWVLQ0HUFHGHV%HQ]YHKLFOHVHYHQLIWKH\KDYHEHHQRIILFLDOO\DSSURYHGRULQGHSHQGƃHQWO\DSSURYHGE\DWHVWLQJFHQWUH&HUWDLQSDUWVDUHRQO\RIILFLDOO\DSSURYHGIRULQVWDOODWLRQRUPRGLILFDWLRQLIWKH\FRPSO\ZLWKOHJDOUHTXLUHPHQWV$OO0HUFHGHV%HQ]*HQXLQHƃ3DUWVPHHWWKHDSSURYDOUHTXLUHPHQWV7KHXVHRIQRQDSSURYHGSDUWVPD\LQYDOLGDWHWKHYHKLƃFOHVJHQHUDORSHUDWLQJSHUPLW7KLVLVWKHFDVHLQWKHIROORZLQJVLWXDWLRQV=$FKDQJHRIWKHYHKLFOHW\SHIURPWKDWIRUZKLFKWKHYHKLFOHVJHQHUDORSHUDWLQJSHUPLWZDVJUDQWHG=,IRWKHUURDGXVHUVFRXOGEHHQGDQJHUHG=,IWKHH[KDXVWJDVRUQRLVHOHYHOVDUHDGYHUVHO\DIIHFWHG$OZD\VVSHFLI\WKHYHKLFOHLGHQWLILFDWLRQQXPEHU9,1ĺSDJHZKHQRUGHULQJ0HUFHGHV%HQ]*HQXLQH3DUWV*HQHUDOQRWHV $

$2ZQHUV0DQXDO7KLV2ZQHUV0DQXDOGHVFULEHVDOOPRGHOVDQGDOOVWDQGDUGDQGRSWLRQDOHTXLSPHQWDYDLODEOHIRU\RXUYHKLFOHDWWKHWLPHRIWKLV2ZQHUV0DQXDOJRLQJWRSUHVV&RXQWU\VSHFLILFGLIIHUHQFHVDUHSRVVLEOH1RWHWKDW\RXUYHKLFOHPD\QRWEHILWƃWHGZLWKDOOIHDWXUHVGHVFULEHG7KLVLVDOVRWKHFDVHIRUV\VWHPVDQGIXQFWLRQVUHOHYDQWWRVDIHW\7KHUHIRUHWKHHTXLSPHQWRQ\RXUYHKLFOHPD\GLIIHUIURPWKDWLQWKHGHVFULSWLRQVDQGLOOXVƃWUDWLRQV7KHRULJLQDOSXUFKDVHFRQWUDFWGRFXPHQWDWLRQIRU\RXUYHKLFOHFRQWDLQVDOLVWRIDOORIWKHV\VƃWHPVLQ\RXUYHKLFOH6KRXOG\RXKDYHDQ\TXHVWLRQVFRQFHUQLQJHTXLSPHQWDQGRSHUDWLRQSOHDVHFRQVXOWD0HUFHGHV%HQ]VHUYLFHFHQWUH7KH2ZQHUV0DQXDODQG6HUYLFH%RRNOHWDUHLPSRUWDQWGRFXPHQWVDQGVKRXOGEHNHSWLQWKHYHKLFOH2SHUDWLQJVDIHW\&:$51,1*5LVNRIDFFLGHQWGXHWRPDOƃIXQFWLRQVRUV\VWHPIDLOXUHV,I\RXGRQRWKDYHWKHSUHVFULEHGVHUYLFHPDLQWHQDQFHZRUNRUDQ\UHTXLUHGUHSDLUVFDUULHGRXWWKLVFRXOGUHVXOWLQPDOIXQFWLRQVRUV\VWHPIDLOXUHV#$OZD\VKDYHWKHSUHVFULEHGVHUYLFHPDLQWHQDQFHZRUNDVZHOODQ\UHTXLUHGUHSDLUVFDUULHGRXWDWDTXDOLILHGVSHƃFLDOLVWZRUNVKRS&:$51,1*5LVNRIDFFLGHQWRULQMXU\GXHWRLQFRUUHFWPRGLILFDWLRQVRQHOHFWURQLFFRPSRQHQWSDUWV0RGLILFDWLRQWRHOHFWURQLFFRPSRQHQWVWKHLUVRIWZDUHRUZLULQJFRXOGLPSDLUWKHLUIXQFWLRQDQGRUWKHIXQFWLRQRIRWKHUQHWZRUNHGFRPƃSRQHQWSDUWV,QSDUWLFXODUV\VWHPVUHOHYDQWWRVDIHW\FRXOGDOVREHDIIHFWHG$VDUHVXOWWKHVHPD\QRORQJHUIXQFWLRQSURSHUO\DQGRUMHRSDUGLVHWKHRSHUDWLQJVDIHW\RIWKHYHKLFOH#1HYHUWDPSHUZLWKWKHZLULQJDQGHOHFƃWURQLFFRPSRQHQWSDUWVRUWKHLUVRIWƃZDUH#<RXVKRXOGKDYHDOOZRUNRQHOHFWULFDODQGHOHFWURQLFFRPSRQHQWVFDUULHGRXWDWDTXDOLILHGVSHFLDOLVWZRUNVKRS,I\RXPRGLI\WKHFDUHOHFWURQLFVWKHJHQHUDORSHUDWLQJSHUPLWLVUHQGHUHGLQYDOLG&:$51,1*5LVNRIILUHGXHWRIODPPDEOHPDWHULDOVRQKRWSDUWVRIWKHH[KDXVWV\VWHP)ODPPDEOHPDWHULDOVXFKDVOHDYHVJUDVVRUWZLJVPD\LJQLWHLIWKH\FRPHLQWRFRQWDFWZLWKKRWSDUWVRIWKHH[KDXVWV\VWHP#:KHQGULYLQJRQXQSDYHGURDGVRURIIURDGUHJXODUO\FKHFNWKHYHKLFOHXQGHUƃVLGH *HQHUDOQRWHV$

$#5HPRYHWUDSSHGSODQWVRURWKHUIODPƃPDEOHPDWHULDOLQSDUWLFXODU#,IWKHUHLVGDPDJHFRQVXOWDTXDOLILHGVSHFLDOLVWZRUNVKRSLPPHGLDWHO\*127('DPDJHWRWKHYHKLFOH'DPDJHWRWKHYHKLFOHPD\RFFXULQWKHIROƃORZLQJFDVHV=WKHYHKLFOHEHFRPHVJURXQGHGHJRQDKLJKNHUERUDQXQSDYHGURDG=WKHYHKLFOHLVGULYHQWRRIDVWRYHUDQREVWDFOHHJDNHUEVSHHGEXPSRUSRWƃKROH=DKHDY\REMHFWVWULNHVWKHXQGHUERG\RUFKDVVLVFRPSRQHQWV,QVLWXDWLRQVVXFKDVWKLVWKHERG\WKHXQGHUERG\FKDVVLVFRPSRQHQWVZKHHOVRUW\UHVFRXOGEHGDPDJHGZLWKRXWWKHGDPDJHEHLQJYLVLEOH&RPSRQHQWVGDPDJHGLQWKLVZD\FDQXQH[SHFWHGO\IDLORULQWKHFDVHRIDQDFFLGHQWQRORQJHUZLWKVWDQGWKHVWUDLQWKH\DUHGHVLJQHGWR,IWKHXQGHUERG\SDQHOOLQJLVGDPDJHGIODPƃPDEOHPDWHULDOVVXFKDVOHDYHVJUDVVRUWZLJVFDQJDWKHUEHWZHHQWKHXQGHUERG\DQGWKHXQGHUERG\SDQHOOLQJ7KHVHPDWHULDOVPD\LJQLWHLIWKH\FRPHLQWRFRQWDFWZLWKKRWSDUWVRQWKHH[KDXVWV\VWHP#+DYHWKHYHKLFOHFKHFNHGDQGUHSDLUHGLPPHGLDWHO\DWDTXDOLILHGVSHFLDOLVWZRUNVKRSRU#,IGULYLQJVDIHW\LVLPSDLUHGZKLOHFRQƃWLQXLQJ\RXUMRXUQH\SXOORYHUDQGVWRSWKHYHKLFOHLPPHGLDWHO\SD\LQJDWWHQƃWLRQWRURDGDQGWUDIILFFRQGLWLRQVDQGFRQWDFWDTXDOLILHGVSHFLDOLVWZRUNVKRS'HFODUDWLRQRI&RQIRUPLW\(OHFWURPDJQHWLFFRPSDWLELOLW\7KHHOHFWURPDJQHWLFFRPSDWLELOLW\RIWKHYHKLFOHFRPSRQHQWVKDVEHHQFKHFNHGDQGFHUWLILHGDFFRUGLQJWRWKHFXUUHQWO\YDOLGYHUVLRQRI5HJXƃODWLRQ(&(5:LUHOHVVYHKLFOHFRPSRQHQWV7KHIROORZLQJLQIRUPDWLRQDSSOLHVWRDOOFRPSRƃQHQWVRIWKHYHKLFOHDQGWKHLQIRUPDWLRQV\VWHPVDQGFRPPXQLFDWLRQGHYLFHVLQWHJUDWHGLQWRWKHYHKLFOHZKLFKUHFHLYHDQGRUWUDQVPLWUDGLRZDYHV7KHFRPSRQHQWVRIWKLVYHKLFOHWKDWUHFHLYHDQGRUWUDQVPLWUDGLRZDYHVDUHFRPSOLDQWZLWKWKHEDVLFUHTXLUHPHQWVDQGDOORWKHUUHOHYDQWFRQGLWLRQVRI'LUHFWLYH(8<RXFDQREWDLQIXUWKHULQIRUPDWLRQIURPD0HUFHGHV%HQ]6HUYLFH&HQWUH-DFN&RS\DQGWUDQVODWLRQRIWKHRULJLQDOGHFODUDWLRQRIFRQIRUPLW\(&GHFODUDWLRQRIFRQIRUPLW\7KHVLJQDWRU\DVDUHSUHVHQWDWLYH0DQXIDFWXUHU%5$12DV+UDGHFQDG0RUDYLFt2SDYVNi*HQHUDOQRWHV $

$&]HFK5HSXEOLF,'1R9$75HJ1R&=GHFODUHVDVRXUVROHUHVSRQVLELOLW\WKDWWKHSURGXFWD'HVFULSWLRQ-DFN7\SHQXPEHU$$$%$&$0DQXIDFWXUH\HDU)XOILOVDOOUHOHYDQWFRQGLWLRQV'LUHFWLYH1R(&E'HVFULSWLRQDQGSXUSRVHRIXVH7KHMDFNLVRQO\LQWHQGHGIRUUDLVLQJWKHVSHFLILHGYHKLFOHLQDFFRUGDQFHZLWKWKHRSHUDWLQJLQVWUXFƃWLRQVDIIL[HGWRWKHMDFN5HIHUHQFHGDWDRIWKHKDUPRQLVHGVWDQGDUGVRUVSHFLILFDWLRQV$,62(1,62$'%/0%1$6%,62,62$'%/0%1&'%/'%/7KHWHFKQLFDOGRFXPHQWDWLRQRIWKHSURGXFWLVVWRUHGDWWKHPDQXIDFWXUHUVSODQW5HSUHVHQWDƃWLYHIRUWKHFRPSLODWLRQRIWKHWHFKQLFDOGRFXƃPHQWDWLRQ'LUHFWRURIWKH7HFKQLFDO'HSDUWPHQW%UDQRDV+UDGHFQDG0RUDYLFt&LW\'DWH6LJQHGE\'LUHFWRURI4XDOLW\7,5(),7NLW&RS\DQGWUDQVODWLRQRIWKHRULJLQDOGHFODUDWLRQRIFRQIRUPLW\(&GHFODUDWLRQRIFRQIRUPLW\,QDFFRUGDQFHZLWK(&'LUHFWLYH(&:HKHUHE\GHFODUHWKDWWKHSURGXFW3URGXFWGHVLJQDWLRQ'DLPOHUHOHFWULFDLUSXPS0RGHOGHVLJQDWLRQYH'78:0%SDUWQR$FRPSOLHVZLWKWKHIROORZLQJUHOHYDQWUHJXODWLRQV(&$SSOLHGKDUPRQLVHGVWDQGDUGVLQSDUWLFXODU',1(1',1(10DQXIDFWXUHU'XQORS7HFK*PE+$GGUHVV%LUNHQKDLQHUVWUDVVH+DQDX*HUPDQ\$XWKRULVHGUHSUHVHQWDWLYH,06GHSW'DWH-XQH6LJQDWXUH,06$0,06$(/ *HQHUDOQRWHV$

$'LDJQRVWLFVFRQQHFWLRQ7KHGLDJQRVWLFVFRQQHFWLRQLVRQO\LQWHQGHGIRUWKHFRQQHFWLRQRIGLDJQRVWLFGHYLFHVDWDTXDOLƃILHGVSHFLDOLVWZRUNVKRS&:$51,1*5LVNRIDFFLGHQWGXHWRFRQƃQHFWLQJGHYLFHVWRWKHGLDJQRVWLFVFRQƃQHFWLRQ,I\RXFRQQHFWHTXLSPHQWWRDGLDJQRVWLFVFRQQHFWLRQLQWKHYHKLFOHLWPD\DIIHFWWKHRSHUDWLRQRIYHKLFOHV\VWHPV$VDUHVXOWWKHRSHUDWLQJVDIHW\RIWKHYHKLƃFOHFRXOGEHDIIHFWHG#2QO\FRQQHFWHTXLSPHQWWRDGLDJQRVƃWLFVFRQQHFWLRQLQWKHYHKLFOHZKLFKLVDSSURYHGIRU\RXUYHKLFOHE\0HUFHGHV%HQ]&:$51,1*5LVNRIDFFLGHQWGXHWRREMHFWVLQWKHGULYHUVIRRWZHOO2EMHFWVLQWKHGULYHUVIRRWZHOOPD\LPSHGHSHGDOWUDYHORUEORFNDGHSUHVVHGSHGDO7KLVMHRSDUGLVHVWKHRSHUDWLQJDQGURDGVDIHW\RIWKHYHKLFOH#6WRZDOOREMHFWVLQWKHYHKLFOHVHFXUHO\VRWKDWWKH\FDQQRWJHWLQWRWKHGULYHUVIRRWZHOO#$OZD\VILWWKHIORRUPDWVVHFXUHO\DQGDVSUHVFULEHGLQRUGHUWRHQVXUHWKDWWKHUHLVDOZD\VVXIILFLHQWURRPIRUWKHSHGDOV#'RQRWXVHORRVHIORRUPDWVDQGGRQRWSODFHIORRUPDWVRQWRSRIRQHDQRWKHU*127(%DWWHU\GLVFKDUJLQJIURPXVLQJGHYLFHVFRQQHFWHGWRWKHGLDJQRVWLFVFRQQHFWLRQ8VLQJGHYLFHVDWWKHGLDJQRVWLFVFRQQHFWLRQGUDLQVWKHEDWWHU\#&KHFNWKHFKDUJHOHYHORIWKHEDWWHU\#,IWKHFKDUJHOHYHOLVORZFKDUJHWKHEDWWHU\HJE\GULYLQJDFRQVLGHUDEOHGLVWDQFH&RQQHFWLQJHTXLSPHQWWRWKHGLDJQRVWLFVFRQƃQHFWLRQFDQOHDGWRHPLVVLRQVPRQLWRULQJLQIRUƃPDWLRQEHLQJUHVHWIRUH[DPSOH7KLVPD\OHDGWRWKHYHKLFOHIDLOLQJWRPHHWWKHUHTXLUHPHQWVRIWKHQH[WHPLVVLRQVLQVSHFWLRQGXULQJWKHPDLQLQVSHFWLRQ4XDOLILHGVSHFLDOLVWZRUNVKRS$TXDOLILHGVSHFLDOLVWZRUNVKRSKDVWKHQHFHVƃVDU\VSHFLDOVNLOOVWRROVDQGTXDOLILFDWLRQVWRFRUUHFWO\FDUU\RXWDQ\QHFHVVDU\ZRUNRQ\RXUYHKLFOH7KLVSDUWLFXODUO\DSSOLHVWRZRUNUHOHYDQWWRVDIHW\$OZD\VKDYHWKHIROORZLQJZRUNFDUULHGRXWRQ\RXUYHKLFOHDWDTXDOLILHGVSHFLDOLVWZRUNVKRS=ZRUNUHOHYDQWWRVDIHW\=VHUYLFHDQGPDLQWHQDQFHZRUN=UHSDLUZRUN=PRGLILFDWLRQVDVZHOODVLQVWDOODWLRQVDQGFRQYHUVLRQV=ZRUNRQHOHFWURQLFFRPSRQHQWV*HQHUDOQRWHV $

$0HUFHGHVƄ%HQ]UHFRPPHQGVD0HUFHGHVƄ%HQ]VHUYLFHFHQWUH9HKLFOHUHJLVWUDWLRQ0HUFHGHV%HQ]PD\DVNLWVVHUYLFHFHQWUHVWRFDUU\RXWWHFKQLFDOLQVSHFWLRQVRQFHUWDLQYHKLƃFOHV7KHTXDOLW\RUVDIHW\RIWKHYHKLFOHLVLPSURYHGDVDUHVXOWRIWKHLQVSHFWLRQ0HUFHGHV%HQ]FDQRQO\LQIRUP\RXDERXWYHKLƃFOHFKHFNVLI0HUFHGHV%HQ]KDV\RXUUHJLVWUDƃWLRQGDWD,WLVSRVVLEOHWKDW\RXUYHKLFOHKDVQRW\HWEHHQUHJLVWHUHGLQ\RXUQDPHLQWKHIROORZLQJFDVHV=LI\RXUYHKLFOHZDVQRWSXUFKDVHGDWDQDXWKRULVHGVSHFLDOLVWGHDOHU=LI\RXUYHKLFOHKDVQRW\HWEHHQH[DPLQHGDWD0HUFHGHV%HQ]VHUYLFHFHQWUH,WLVDGYLVDEOHWRUHJLVWHU\RXUYHKLFOHZLWKD0HUFHGHV%HQ]VHUYLFHFHQWUH,QIRUP0HUFHGHV%HQ]DVVRRQDVSRVVLEOHDERXWDQ\FKDQJHLQDGGUHVVRUYHKLFOHRZQHUƃVKLS<RXFDQGRWKLVDWD0HUFHGHV%HQ]VHUYLFHFHQWUHIRUH[DPSOH&RUUHFWXVHRIWKHYHKLFOH,I\RXUHPRYHDQ\ZDUQLQJVWLFNHUV\RXRURWKHUVFRXOGIDLOWRUHFRJQLVHFHUWDLQGDQJHUV/HDYHZDUQLQJVWLFNHUVLQSRVLWLRQ:KHQXVLQJWKHYHKLFOHREVHUYHWKHIROORZLQJLQIRUPDWLRQ=WKHVDIHW\QRWHVLQWKLVPDQXDO=WHFKQLFDOGDWDIRUWKHYHKLFOH=WUDIILFUXOHVDQGUHJXODWLRQV=ODZVDQGVDIHW\VWDQGDUGVSHUWDLQLQJWRPRWRUYHKLFOHV,PSOLHGZDUUDQW\*127('DPDJHWRWKHYHKLFOHDULVLQJIURPYLRODWLRQRIWKHVHRSHUDWLQJLQVWUXFƃWLRQV'DPDJHWRWKHYHKLFOHFDQDULVHIURPYLRODƃWLRQRIWKHVHRSHUDWLQJLQVWUXFWLRQV7KLVGDPDJHLVQRWFRYHUHGHLWKHUE\WKH0HUFHGHV%HQ]LPSOLHGZDUUDQW\RUE\WKH1HZƄRU8VHG9HKLFOH:DUUDQW\#)ROORZWKHLQVWUXFWLRQVLQWKHVHRSHUDWƃLQJLQVWUXFWLRQVRQSURSHURSHUDWLRQRI\RXUYHKLFOHDVZHOODVRQSRVVLEOHYHKLƃFOHGDPDJH45FRGHIRUUHVFXHFDUG7KH45FRGHLVVHFXUHGLQWKHIXHOILOOHUIODSDQGRQWKHRSSRVLWHVLGHRQWKH%SLOODU,QWKHHYHQWRIDQDFFLGHQWUHVFXHVHUYLFHVFDQXVHWKH45FRGHWRTXLFNO\ILQGWKHDSSURSULDWHUHVFXHFDUGIRU\RXUYHKLFOH7KHFXUUHQWUHVFXHFDUGFRQƃWDLQVWKHPRVWLPSRUWDQWLQIRUPDWLRQDERXW\RXUYHKLFOHLQDFRPSDFWIRUPHJWKHURXWLQJRIWKHHOHFWULFOLQHV)XUWKHULQIRUPDWLRQFDQEHREWDLQHGDWKWWSZZZPHUFHGHVEHQ]GHTUFRGH *HQHUDOQRWHV$

$9HKLFOHGDWDVWRUDJH,QIRUPDWLRQIURPHOHFWURQLFFRQWUROXQLWV(OHFWURQLFFRQWUROXQLWVDUHILWWHGLQ\RXUYHKLFOH6RPHRIWKHVHDUHQHFHVVDU\IRUWKHVDIHRSHUDƃWLRQRI\RXUYHKLFOHZKLOHVRPHDVVLVW\RXZKHQGULYLQJGULYHUDVVLVWDQFHV\VWHPV,QDGGLWLRQ\RXUYHKLFOHSURYLGHVFRQYHQLHQFHDQGHQWHUWDLQƃPHQWIXQFWLRQVZKLFKDUHDOVRPDGHSRVVLEOHE\HOHFWURQLFFRQWUROXQLWV(OHFWURQLFFRQWUROXQLWVFRQWDLQGDWDPHPRULHVZKLFKFDQWHPSRUDULO\RUSHUPDQHQWO\VWRUHWHFKQLFDOLQIRUPDWLRQDERXWWKHYHKLFOHVRSHUDWƃLQJVWDWHFRPSRQHQWORDGVPDLQWHQDQFHUHTXLUHPHQWVDQGWHFKQLFDOHYHQWVRUIDXOWV,QJHQHUDOWKLVLQIRUPDWLRQGRFXPHQWVWKHVWDWHRIDFRPSRQHQWSDUWDPRGXOHDV\VWHPRUWKHVXUURXQGLQJVVXFKDV=RSHUDWLQJVWDWXVHVRIV\VWHPFRPSRQHQWVHJIOXLGOHYHOVEDWWHU\VWDWXVW\UHSUHVƃVXUH=VWDWXVPHVVDJHVFRQFHUQLQJWKHYHKLFOHDQGLWVLQGLYLGXDOFRPSRQHQWVHJQXPEHURIZKHHOUHYROXWLRQVVSHHGGHFHOHUDWLRQODWƃHUDODFFHOHUDWLRQGLVSOD\RIWKHIDVWHQHGVHDWEHOWV=PDOIXQFWLRQVRUGHIHFWVLQLPSRUWDQWV\VWHPFRPSRQHQWVHJOLJKWVEUDNHV=LQIRUPDWLRQRQYHKLFOHGDPDJHHYHQWV=V\VWHPUHDFWLRQVLQVSHFLDOGULYLQJVLWXDWLRQVHJDLUEDJGHSOR\PHQWLQWHUYHQWLRQRIVWDƃELOLW\FRQWUROV\VWHPV=DPELHQWFRQGLWLRQVHJWHPSHUDWXUHUDLQVHQVRU,QDGGLWLRQWRSURYLGLQJWKHDFWXDOFRQWUROXQLWIXQFWLRQWKLVGDWDDVVLVWVWKHPDQXIDFWXUHULQGHWHFWLQJDQGUHFWLI\LQJIDXOWVDQGRSWLPLVLQJYHKLFOHIXQFWLRQV7KHPDMRULW\RIWKLVGDWDLVWHPSRUDU\DQGLVRQO\SURFHVVHGLQWKHYHKLFOHLWVHOI2QO\DVPDOOSRUWLRQRIWKHGDWDLVVWRUHGLQWKHHYHQWRUIDXOWPHPRU\:KHQ\RXUYHKLFOHLVVHUYLFHGWHFKQLFDOGDWDIURPWKHYHKLFOHFDQEHUHDGRXWE\VHUYLFHQHWƃZRUNHPSOR\HHVRUWKLUGSDUWLHV6HUYLFHVLQFOXGHUHSDLUVHUYLFHVPDLQWHQDQFHSURFHVVHVZDUUDQW\HYHQWVDQGTXDOLW\DVVXUDQFHPHDVƃXUHVIRUH[DPSOH7KHUHDGRXWLVSHUIRUPHGYLDWKHOHJDOO\SUHVFULEHGSRUWIRU2%'RQERDUGGLDJQRVWLFVLQWKHYHKLFOH7KHUHVSHFWLYHVHUYLFHQHWZRUNORFDWLRQVRUWKLUGSDUWLHVFROƃOHFWSURFHVVDQGXVHWKHGDWD7KH\GRFXPHQWWHFKQLFDOVWDWXVHVRIWKHYHKLFOHDVVLVWLQILQGƃLQJIDXOWVDQGLPSURYLQJTXDOLW\DQGDUHWUDQVƃPLWWHGWRWKHPDQXIDFWXUHULIQHFHVVDU\)XUƃWKHUPRUHWKHPDQXIDFWXUHULVVXEMHFWWRSURGƃXFWOLDELOLW\)RUWKLVWKHPDQXIDFWXUHUUHTXLUHVWHFKQLFDOGDWDIURPYHKLFOHV)DXOWPHPRULHVLQWKHYHKLFOHFDQEHUHVHWE\DVHUYLFHRXWOHWDVSDUWRIUHSDLURUPDLQWHQDQFHZRUN7KH\FDQHQWHUGDWDLQWRWKHYHKLFOHVFRQYHQLƃHQFHDQGLQIRWDLQPHQWIXQFWLRQVWKHPVHOYHVDVSDUWRIWKHVHOHFWHGHTXLSPHQW7KLVLQFOXGHVIRUH[DPSOH=PXOWLPHGLDGDWDVXFKDVPXVLFILOPVRUSKRƃWRVIRUSOD\EDFNLQDQLQWHJUDWHGPXOWLPHGLDV\VWHP=DGGUHVVERRNGDWDIRUXVHLQFRQQHFWLRQZLWKDQLQWHJUDWHGKDQGVIUHHV\VWHPRUDQLQWHƃJUDWHGQDYLJDWLRQV\VWHP=HQWHUHGQDYLJDWLRQGHVWLQDWLRQV=GDWDDERXWWKHXVHRI,QWHUQHWVHUYLFHV*HQHUDOQRWHV $

$7KLVGDWDFDQEHVWRUHGORFDOO\LQWKHYHKLFOHRULVORFDWHGRQDGHYLFHZKLFK\RXKDYHFRQQHFWHGWRWKHYHKLFOH,IWKLVGDWDLVVWRUHGLQWKHYHKLƃFOH\RXFDQGHOHWHLWDWDQ\WLPH7KLVGDWDFDQRQO\EHWUDQVPLWWHGWRWKLUGSDUWLHVXSRQ\RXUUHTXHVWZLWKSDUWLFXODUUHJDUGWRWKHVFRSHRIXVHRIRQOLQHVHUYLFHVDFFRUGLQJWR\RXUVHOHFWHGVHWWLQJV<RXFDQVWRUHRUFKDQJHFRQYHQLHQFHVHWWLQJVLQGLYLGXDOLVDWLRQVLQWKHYHKLFOHDWDQ\WLPH'HSHQGLQJRQWKHHTXLSPHQWWKLVLQFOXGHVIRUH[DPSOH=VHWWLQJVRIWKHVHDWSRVLWLRQV=VXVSHQVLRQDQGFOLPDWHFRQWUROVHWWLQJV=LQGLYLGXDOLVDWLRQVXFKDVLQWHULRUOLJKWLQJ,I\RXUYHKLFOHLVDFFRUGLQJO\HTXLSSHG\RXFDQFRQQHFW\RXUVPDUWSKRQHRUDQRWKHUPRELOHHQGGHYLFHWRWKHYHKLFOH<RXFDQFRQWUROWKHPYLDWKHFRQWUROHOHPHQWVLQWHJUDWHGLQ\RXUYHKLFOH,PDJHVDQGDXGLRIURPWKHVPDUWSKRQHFDQEHRXWSXWYLDWKHPXOWLPHGLDV\VWHP&HUWDLQLQIRUƃPDWLRQLVVLPXOWDQHRXVO\WUDQVPLWWHGWR\RXUVPDUWSKRQH'HSHQGLQJRQWKHUHVSHFWLYHLQWHJUDWLRQW\SHWKLVLQFOXGHVIRUH[DPSOH=JHQHUDOYHKLFOHGDWD=SRVLWLRQGDWD7KLVHQDEOHVWKHXVHRIVHOHFWHGVPDUWSKRQH$SSVHJQDYLJDWLRQRUPXVLFSOD\EDFN7KHUHLVQRIXUWKHULQWHUDFWLRQEHWZHHQWKHVPDUWSKRQHDQGWKHYHKLFOHLQSDUWLFXODUYHKLFOHGDWDLVQRWGLUHFWO\DFFHVVLEOH:KLFKW\SHRIIXUWKHUGDWDSURFHVVLQJRFFXUVLVGHWHUPLQHGE\WKHSURYLGHURIWKHVSHFLILFDSSXVHG:KLFKVHWWLQJV\RXFDQPDNHLIDQ\GHSHQGVRQWKHVSHFLILFDSSDQGWKHRSHUDWLQJV\VWHPRI\RXUVPDUWSKRQH6HUYLFHSURYLGHUV:LUHOHVVQHWZRUNFRQQHFWLRQ,I\RXUYHKLFOHKDVDZLUHOHVVQHWZRUNFRQQHFƃWLRQLWHQDEOHVGDWDWREHH[FKDQJHGEHWZHHQ\RXUYHKLFOHDQGDGGLWLRQDOV\VWHPV7KHZLUHƃOHVVQHWZRUNFRQQHFWLRQLVHQDEOHGYLDWKHYHKLƃFOHVWUDQVPLVVLRQDQGUHFHSWLRQXQLWRUYLDFRQƃQHFWHGPRELOHHQGGHYLFHVHJVPDUWSKRQHV2QOLQHIXQFWLRQVFDQEHXVHGYLDWKHZLUHOHVVQHWZRUNFRQQHFWLRQ7KLVLQFOXGHVRQOLQHVHUYƃLFHVDQGDSSOLFDWLRQV$SSVSURYLGHGE\WKHPDQXIDFWXUHURURWKHUSURYLGHUV0DQXIDFWXUHUVVHUYLFHV7KHPDQXIDFWXUHUGHVFULEHVWKHUHVSHFWLYHIXQFƃWLRQVDQGFRUUHVSRQGLQJOHJDOGDWDSURWHFWLRQLQIRUPDWLRQZKHQVXLWDEOHIRUWKHPDQXIDFWXUHUVRQOLQHVHUYLFHV3HUVRQDOGDWDPD\EHXVHGIRUWKHSURYLVLRQRIRQOLQHVHUYLFHV'DWDLVH[FKDQJHGYLDDVHFXUHFRQQHFWLRQHJWRWKHPDQXIDFWXUHUVGHVLJQDWHG,7V\VWHPV3HUVRQDOGDWDLVFROOHFWHGSURFHVVHGDQGXVHGYLDWKHSURYLVLRQRIVHUYLFHVH[FOXVLYHO\RQWKHEDVLVRIOHJDOSHUPLVVLRQVRUZLWKSULRUFRQVHQW7KHVHUYLFHVDQGIXQFWLRQVVRPHWLPHVVXEMHFWWRDIHHFDQXVXDOO\EHDFWLYDWHGRUGHDFWLYDWHG,QVRPHFDVHVWKLVDOVRDSSOLHVWRWKHHQWLUHYHKLFOHVGDWDFRQQHFWLRQ7KLVH[FOXGHVLQSDUƃWLFXODUOHJDOO\SUHVFULEHGIXQFWLRQVDQGVHUYLFHV7KLUGSDUW\VHUYLFHV,ILWLVSRVVLEOHWRXVHRQOLQHVHUYLFHVIURPRWKHUSURYLGHUVWKHVHVHUYLFHVDUHVXEMHFWWRWKHGDWDSURWHFWLRQDQGWHUPVRIXVHRIWKHUHVSRQVLEOH *HQHUDOQRWHV$

$SURYLGHU7KHPDQXIDFWXUHUKDVQRLQIOXHQFHRQWKHFRQWHQWH[FKDQJHG3OHDVHHQTXLUHWKHUHIRUHDERXWWKHW\SHVFRSHDQGSXUSRVHRIWKHFROOHFWLRQDQGXVHRISHUƃVRQDOGDWDDVSDUWRIWKLUGSDUW\VHUYLFHVIURPWKHLUUHVSHFWLYHSURYLGHU&RS\ULJKW,QIRUPDWLRQRQIUHHDQGRSHQVRXUFHVRIWZDUHOLFHQFHVIRU\RXUYHKLFOHVVRIWZDUHFDQEHIRXQGRQWKHGDWDVWRUDJHPHGLXPLQ\RXUYHKLFOHGRFXPHQWZDOOHWDQGRQWKH,QWHUQHWWRJHWKHUZLWKXSGDWHVDWKWWSZZZPHUFHGHVEHQ]FRPRSHQVRXUFH*HQHUDOQRWHV $

$5HVWUDLQWV\VWHP3URWHFWLRQE\WKHUHVWUDLQWV\VWHP7KHUHVWUDLQWV\VWHPLQFOXGHVWKHIROORZLQJ=6HDWEHOWV\VWHP=$LUEDJV=&KLOGUHVWUDLQWV\VWHP=&KLOGVHDWVHFXULQJV\VWHP7KHUHVWUDLQWV\VWHPFDQUHGXFHWKHULVNRIYHKLƃFOHRFFXSDQWVFRPLQJLQWRFRQWDFWZLWKSDUWVRIWKHYHKLFOHLQWHULRULQWKHHYHQWRIDQDFFLGHQW,QWKHHYHQWRIDQDFFLGHQWWKHUHVWUDLQWV\VWHPFDQDOVRUHGXFHWKHIRUFHVWRZKLFKWKHYHKLFOHRFFXSDQWVDUHVXEMHFWHG$VHDWEHOWFDQRQO\SURYLGHWKHEHVWOHYHORISURƃWHFWLRQLILWLVZRUQFRUUHFWO\'HSHQGLQJRQWKHGHWHFWHGDFFLGHQWVLWXDWLRQVHDWEHOWWHQVLRQHUVDQGRUDLUEDJVVXSSOHPHQWWKHSURWHFWLRQRIIHUHGE\DFRUUHFWO\ZRUQVHDWEHOW6HDWEHOWWHQVLRQHUVDQGRUDLUEDJVDUHQRWGHSOR\HGLQHYHU\DFFLGHQW,QRUGHUIRUWKHUHVWUDLQWV\VWHPWRSURYLGHWKHLQWHQGHGOHYHORISURWHFWLRQHDFKYHKLFOHRFFXƃSDQWPXVWREVHUYHWKHIROORZLQJLQIRUPDWLRQ=)DVWHQVHDWEHOWVFRUUHFWO\=6LWLQDQDOPRVWXSULJKWVHDWSRVLWLRQZLWKWKHLUEDFNDJDLQVWWKHVHDWEDFNUHVW=6LWZLWKWKHLUIHHWUHVWLQJRQWKHIORRULISRVƃVLEOH=$OZD\VVHFXUHSHUVRQVXQGHUPWDOOLQDQDGGLWLRQDOUHVWUDLQWV\VWHPVXLWDEOHIRU0HUFHGHV%HQ]YHKLFOHV+RZHYHUQRV\VWHPDYDLODEOHWRGD\FDQFRPƃSOHWHO\HOLPLQDWHLQMXULHVDQGIDWDOLWLHVLQHYHU\DFFLGHQWVLWXDWLRQ,QSDUWLFXODUWKHVHDWEHOWDQGDLUEDJJHQHUDOO\GRQRWSURWHFWDJDLQVWREMHFWVSHQHWUDWLQJWKHYHKLFOHIURPWKHRXWVLGH,WLVDOVRQRWSRVVLEOHWRFRPSOHWHO\UXOHRXWWKHULVNRILQMXU\FDXVHGE\WKHDLUEDJGHSOR\LQJ5HGXFHGUHVWUDLQWV\VWHPSURWHFWLRQ&:$51,1*5LVNRILQMXU\RUGHDWKIURPPRGLILFDWLRQVWRWKHUHVWUDLQWV\VWHP7KHUHVWUDLQWV\VWHPFDQQRORQJHUIXQFWLRQFRUUHFWO\DIWHUDOWHUDWLRQVKDYHEHHQPDGH7KHUHVWUDLQWV\VWHPPD\WKHQQRWSURWHFWWKHYHKLFOHRFFXSDQWVDVLQWHQGHGE\IDLOLQJLQDQDFFLGHQWRUWULJJHULQJXQH[SHFWHGO\IRUH[DPSOH#1HYHUDOWHUWKHSDUWVRIWKHUHVWUDLQWV\VWHP#1HYHUWDPSHUZLWKWKHZLULQJRUDQ\HOHFWURQLFFRPSRQHQWSDUWVRUWKHLUVRIWZDUH,ILWLVQHFHVVDU\WRPRGLI\WKHYHKLFOHWRDFFRPƃPRGDWHDSHUVRQZLWKGLVDELOLWLHVFRQWDFWDTXDOLILHGVSHFLDOLVWZRUNVKRS0HUFHGHV%HQ]UHFRPPHQGVWKDW\RXRQO\XVHGULYLQJDLGVZKLFKKDYHEHHQDSSURYHGVSHFLILƃFDOO\IRU\RXUYHKLFOHE\0HUFHGHV%HQ] 2FFXSDQWVDIHW\$

$5HVWUDLQWV\VWHPIXQFWLRQDOLW\:KHQWKHLJQLWLRQLVVZLWFKHGRQDVHOIWHVWLVSHUIRUPHGGXULQJZKLFKWKHuUHVWUDLQWV\VƃWHPZDUQLQJODPSOLJKWVXS,WJRHVRXWQRODWHUWKDQDIHZVHFRQGVDIWHUWKHYHKLFOHLVVWDUWHG7KHFRPSRQHQWVRIWKHUHVWUDLQWV\VWHPDUHWKHQIXQFWLRQDO0DOIXQFWLRQLQJUHVWUDLQWV\VWHP$PDOIXQFWLRQKDVRFFXUUHGLQWKHUHVWUDLQWV\VƃWHPLI=7KHuUHVWUDLQWV\VWHPZDUQLQJODPSGRHVQRWOLJKWXSZKHQWKHLJQLWLRQLVVZLWFKHGRQ=7KHuUHVWUDLQWV\VWHPZDUQLQJODPSOLJKWVXSFRQWLQXRXVO\RUUHSHDWHGO\GXULQJDMRXUQH\&:$51,1*5LVNRILQMXU\RUIDWDOLQMXU\GXHWRDPDOIXQFWLRQLQWKHUHVWUDLQWV\VƃWHP,IWKHUHVWUDLQWV\VWHPLVPDOIXQFWLRQLQJUHVWUDLQWV\VWHPFRPSRQHQWVPD\EHWULJƃJHUHGXQLQWHQWLRQDOO\RUPLJKWQRWEHWULJƃJHUHGDWDOOLQWKHHYHQWRIDQDFFLGHQW7KLVPD\DIIHFWWKHVHDWEHOWWHQVLRQHURUDLUEDJIRUH[DPSOH#+DYHWKHUHVWUDLQWV\VWHPFKHFNHGDQGUHSDLUHGLPPHGLDWHO\DWDTXDOLILHGVSHƃFLDOLVWZRUNVKRS)XQFWLRQRIWKHUHVWUDLQWV\VWHPLQDQDFFLƃGHQW+RZWKHUHVWUDLQWV\VWHPZRUNVLVGHWHUPLQHGE\WKHVHYHULW\RIWKHLPSDFWGHWHFWHGDQGWKHW\SHRIDFFLGHQWDQWLFLSDWHG=)URQWDOLPSDFW=5HDULPSDFW=6LGHLPSDFW=2QO\IRUFHUWDLQFRXQWULHVUROORYHU7KHDFWLYDWLRQWKUHVKROGVIRUWKHFRPSRQHQWVRIWKHUHVWUDLQWV\VWHPDUHGHWHUPLQHGEDVHGRQWKHHYDOXDWLRQRIWKHVHQVRUYDOXHVPHDVXUHGDWYDULRXVSRLQWVLQWKHYHKLFOH7KLVSURFHVVLVSUHHPSWLYHLQQDWXUH7KHWULJJHULQJGHSOR\PHQWRIWKHFRPSRQHQWVRIWKHUHVWUDLQWV\VWHPPXVWWDNHSODFHLQJRRGWLPHDWWKHVWDUWRIWKHFROOLƃVLRQ)DFWRUVZKLFKFDQRQO\EHVHHQDQGPHDVXUHGDIWHUDFROOLVLRQKDVRFFXUUHGFDQQRWSOD\DGHFLƃVLYHUROHLQDLUEDJGHSOR\PHQWQRUGRWKH\SURƃYLGHDQLQGLFDWLRQRIDLUEDJGHSOR\PHQW7KHYHKLFOHPD\EHGHIRUPHGVLJQLILFDQWO\ZLWKƃRXWDQDLUEDJEHLQJGHSOR\HG7KLVLVWKHFDVHLIRQO\SDUWVZKLFKDUHUHODWLYHO\HDVLO\GHIRUPHGDUHDIIHFWHGDQGWKHUDWHRIYHKLFOHGHFHOHUDWLRQLVQRWKLJK&RQYHUVHO\DQDLUEDJPD\EHGHSOR\HGHYHQWKRXJKWKHYHKLFOHVXIIHUVRQO\PLQRUGHIRUPDWLRQ,IYHU\ULJLGYHKLFOHSDUWVVXFKDVORQJLWXGLQDOPHPEHUVDUHKLWIRUH[DPƃSOHWKLVPD\UHVXOWLQVXIILFLHQWO\KLJKOHYHOVRIYHKLFOHGHFHOHUDWLRQ2FFXSDQWVDIHW\ $

$7KHFRPSRQHQWVRIWKHUHVWUDLQWV\VWHPFDQEHDFWLYDWHGRUGHSOR\HGLQGHSHQGHQWO\RIHDFKRWKHU&RPSRQHQW 'HWHFWHGGHSOR\ƃPHQWVLWXDWLRQ6HDWEHOWWHQVLRQHUV )URQWDOLPSDFWUHDULPSDFWVLGHLPSDFWUROORYHU'ULYHUVDLUEDJIURQWSDVVHQJHUIURQWDLUƃEDJ)URQWDOLPSDFW.QHHDLUEDJ )URQWDOLPSDFW6LGHLPSDFWDLUEDJ 6LGHLPSDFW:LQGRZDLUEDJ 6LGHLPSDFWUROOƃRYHUIURQWDOLPSDFW2QO\IRUFHUWDLQFRXQWULHV7KHIURQWSDVVHQJHUIURQWDLUEDJFDQRQO\EHGHSOR\HGLQDQDFFLGHQWLIWKH3$66(1*(5$,5%$*2))LQGLFDWRUODPSLVRII,IWKHIURQWSDVVHQJHUVHDWLVRFFXSLHGPDNHVXUHERWKEHIRUHDQGGXULQJWKHMRXUQH\WKDWWKHVWDWXVRIWKHIURQWSDVVHQJHUIURQWDLUEDJLVFRUUHFWĺSDJHĺSDJH&:$51,1*5LFNRIEXUQVIURPKRWDLUEDJFRPSRQHQWV7KHDLUEDJSDUWVDUHKRWDIWHUDQDLUEDJKDVEHHQGHSOR\HG#'RQRWWRXFKWKHDLUEDJSDUWV#+DYHDGHSOR\HGDLUEDJUHSODFHGDWDTXDOLILHGVSHFLDOLVWZRUNVKRSDVVRRQDVSRVVLEOH0HUFHGHV%HQ]UHFRPPHQGVWKDW\RXKDYHWKHYHKLFOHWRZHGWRDTXDOLILHGVSHFLDOLVWZRUNVKRSDIWHUDQDFFLGHQW7DNHWKLVLQWRDFFRXQWSDUWLFƃXODUO\LIDVHDWEHOWWHQVLRQHULVWULJJHUHGRUDQDLUEDJGHSOR\HG,IWKHVHDWEHOWWHQVLRQHUVDUHWULJJHUHGRUDQDLUƃEDJLVGHSOR\HG\RXZLOOKHDUDEDQJDQGDVPDOODPRXQWRISRZGHUPD\DOVREHUHOHDVHG=7KHEDQJZLOOQRWJHQHUDOO\DIIHFW\RXUKHDUƃLQJ=,QJHQHUDOWKHSRZGHUUHOHDVHGLVQRWKD]ƃDUGRXVWRKHDOWKEXWPD\FDXVHVKRUWWHUPEUHDWKLQJGLIILFXOWLHVWRSHUVRQVVXIIHULQJIURPDVWKPDRURWKHUSXOPRQDU\FRQGLWLRQV3URYLGHGLWLVVDIHWRGRVROHDYHWKHYHKLFOHLPPHGLDWHO\RURSHQWKHZLQGRZLQRUGHUWRSUHYHQWEUHDWKLQJGLIILFXOWLHV6HDWEHOWV3URWHFWLRQSURYLGHGE\WKHVHDWEHOW$OZD\VIDVWHQ\RXUVHDWEHOWFRUUHFWO\EHIRUHVWDUWLQJDMRXUQH\$VHDWEHOWFDQRQO\SURYLGHWKHEHVWOHYHORISURWHFWLRQLILWLVZRUQFRUUHFWO\&:$51,1*5LVNRILQMXU\RUGHDWKGXHWRLQFRUUHFWO\IDVWHQHGVHDWEHOW,IWKHVHDWEHOWLVQRWZRUQFRUUHFWO\LWFDQƃQRWSHUIRUPLWVLQWHQGHGSURWHFWLYHIXQFWLRQ,QDGGLWLRQDQLQFRUUHFWO\IDVWHQHGVHDWEHOWFDQDOVRFDXVHLQMXULHVIRUH[DPSOHLQWKHHYHQWRIDQDFFLGHQWRUZKHQEUDNLQJRUFKDQJLQJGLUHFWLRQVXGGHQO\ 2FFXSDQWVDIHW\$

$#$OZD\VHQVXUHWKDWDOOYHKLFOHRFFXƃSDQWVKDYHWKHLUVHDWEHOWVIDVWHQHGFRUUHFWO\DQGDUHVLWWLQJSURSHUO\$OZD\VREVHUYHWKHLQVWUXFWLRQVDERXWWKHFRUƃUHFWGULYHUVVHDWSRVLWLRQDQGDGMXVWLQJWKHVHDWĺSDJH,QRUGHUIRUWKHFRUUHFWO\ZRUQVHDWEHOWWRSURƃYLGHWKHLQWHQGHGOHYHORISURWHFWLRQHDFKYHKLƃFOHRFFXSDQWPXVWREVHUYHWKHIROORZLQJLQIRUƃPDWLRQ=7KHVHDWEHOWPXVWQRWEHWZLVWHGDQGPXVWILWWLJKWO\DQGVQXJO\DFURVVWKHERG\=7KHVHDWEHOWPXVWEHURXWHGDFURVVWKHFHQWUHRIWKHVKRXOGHUDQGDVORZGRZQDFURVVWKHKLSVDVSRVVLEOH=7KHVKRXOGHUVHFWLRQRIWKHVHDWEHOWVKRXOGQRWWRXFK\RXUQHFNQRUEHURXWHGXQGHU\RXUDUPRUEHKLQG\RXUEDFN=$YRLGZHDULQJEXON\FORWKLQJHJDZLQWHUFRDW=3XVKWKHODSEHOWGRZQDVIDUDVSRVVLEOHDFURVV\RXUKLSVDQGSXOOWLJKWZLWKWKHVKRXOƃGHUVHFWLRQRIWKHEHOW1HYHUURXWHWKHODSEHOWDFURVV\RXUDEGRPHQ=1HYHUURXWHWKHVHDWEHOWDFURVVVKDUSSRLQƃWHGDEUDVLYHRUIUDJLOHREMHFWV=2QO\RQHSHUVRQVKRXOGXVHHDFKVHDWEHOWDWDQ\RQHWLPH1HYHUDOORZEDELHVDQGFKLOƃGUHQWRWUDYHOVLWWLQJRQWKHODSRIDQRWKHUYHKLFOHRFFXSDQW=1HYHUVHFXUHREMHFWVZLWKDVHDWEHOWLIWKHVHDWEHOWLVDOVREHLQJXVHGE\RQHRIWKHYHKLFOHVRFFXSDQWV$OZD\VREVHUYHWKHLQVWUXFWLRQVIRUORDGLQJWKHYHKLFOHZKHQVHFXULQJREMHFWVOXJJDJHRUORDGVĺSDJH$OVRHQVXUHWKDWQRREMHFWVHJDFXVKLRQDUHHYHUSODFHGEHWZHHQDSHUVRQDQGWKHVHDW,IFKLOGUHQDUHWUDYHOOLQJLQWKHYHKLFOHEHVXUHWRREVHUYHWKHLQVWUXFWLRQVDQGVDIHW\QRWHVRQ&KLOGUHQLQWKHYHKLFOHĺSDJH5HGXFHGVHDWEHOWSURWHFWLRQ&:$51,1*5LVNRILQMXU\RUGHDWKGXHWRLQFRUUHFWVHDWSRVLWLRQ7KHVHDWEHOWGRHVQRWRIIHUWKHLQWHQGHGOHYHORISURWHFWLRQLI\RXKDYHQRWPRYHGWKHVHDWEDFNUHVWWRDQDOPRVWYHUWLFDOSRVLWLRQ:KHQEUDNLQJRULQWKHHYHQWRIDQDFFLGHQW\RXFRXOGVOLGHXQGHUQHDWKWKHVHDWEHOWDQGVXVWDLQDEGRPLQDORUQHFNLQMXULHVIRUH[DPƃSOH#$GMXVWWKHVHDWSURSHUO\EHIRUHEHJLQƃQLQJ\RXUMRXUQH\#$OZD\VHQVXUHWKDWWKHVHDWEDFNUHVWLVLQDQDOPRVWYHUWLFDOSRVLWLRQDQGWKDWWKHVKRXOGHUVHFWLRQRI\RXUVHDWEHOWLVURXWHGDFURVVWKHFHQWUHRI\RXUVKRXOƃGHU2FFXSDQWVDIHW\ $

$&:$51,1*5LVNRILQMXU\RUGHDWKZKHQDGGLWLRQDOUHVWUDLQWV\VWHPVDUHQRWXVHGIRUSHUVRQVZLWKDVPDOOHUEXLOG3HUVRQVXQGHUPWDOOFDQQRWZHDUWKHVHDWEHOWFRUUHFWO\ZLWKRXWDVXLWDEOHDGGLƃWLRQDOUHVWUDLQWV\VWHP,IWKHVHDWEHOWLVQRWZRUQFRUUHFWO\LWFDQƃQRWSHUIRUPLWVLQWHQGHGSURWHFWLYHIXQFWLRQ,QDGGLWLRQDQLQFRUUHFWO\IDVWHQHGVHDWEHOWFDQDOVRFDXVHLQMXULHVIRUH[DPSOHLQWKHHYHQWRIDQDFFLGHQWRUZKHQEUDNLQJRUFKDQJLQJGLUHFWLRQVXGGHQO\#$OZD\VVHFXUHSHUVRQVXQGHUPWDOOLQDVXLWDEOHUHVWUDLQWV\VWHP&:$51,1*5LVNRILQMXU\RUGHDWKGXHWRGDPDJHGRUPRGLILHGVHDWEHOWV6HDWEHOWVFDQQRWSURYLGHSURWHFWLRQLQWKHIROORZLQJVLWXDWLRQV=,IWKHVHDWEHOWVDUHGDPDJHGPRGLILHGH[WUHPHO\GLUW\EOHDFKHGRUG\HG=,IWKHVHDWEHOWEXFNOHLVGDPDJHGRUH[WUHPHO\GLUW\=,IWKHVHDWEHOWWHQVLRQHUVVHDWEHOWDQFKRUDJHVRUVHDWEHOWUHWUDFWRUVKDYHEHHQPRGLILHG6HDWEHOWVPD\EHGDPDJHGLQDQDFFLGHQWDOWKRXJKWKHGDPDJHPD\QRWEHYLVLEOHHJGXHWRVSOLQWHUVRIJODVV0RGLILHGRUGDPDJHGVHDWEHOWVPD\WHDURUIDLOHJLQDQDFFLGHQW0RGLILHGVHDWEHOWWHQVLRQHUVFRXOGDFFLGHQƃWDOO\WULJJHURUIDLOWRIXQFWLRQDVLQWHQGHG#1HYHUPRGLI\WKHVHDWEHOWVVHDWEHOWWHQVLRQHUVVHDWEHOWDQFKRUDJHVRUVHDWEHOWUHWUDFWRUV#0DNHVXUHWKDWWKHVHDWEHOWVDUHXQGDPDJHGQRWZRUQDQGFOHDQ#$OZD\VKDYHWKHVHDWEHOWVFKHFNHGLPPHGLDWHO\DIWHUDQDFFLGHQWDWDTXDOLILHGVSHFLDOLVWZRUNVKRS0HUFHGHV%HQ]UHFRPPHQGVWKDW\RXRQO\XVHVHDWEHOWVZKLFKKDYHEHHQDSSURYHGVSHFLILFDOO\IRU\RXUYHKLFOHE\0HUFHGHV%HQ]&:$51,1*5LVNRILQMXU\RUGHDWKIURPGHSOR\HGS\URWHFKQLFVHDWEHOWWHQVLRQƃHUV3\URWHFKQLFVHDWEHOWWHQVLRQHUVWKDWKDYHEHHQGHSOR\HGDUHQRORQJHURSHUDWLRQDODQGDUHXQDEOHWRSHUIRUPWKHLULQWHQGHGSURWHFƃWLYHIXQFWLRQ#7KHUHIRUHKDYHGHSOR\HGS\URWHFKQLFVHDWEHOWWHQVLRQHUVLPPHGLDWHO\UHSODFHGDWDTXDOLILHGVSHFLDOLVWZRUNƃVKRS0HUFHGHV%HQ]UHFRPPHQGVWKDW\RXKDYHWKHYHKLFOHWRZHGWRDTXDOLILHGVSHFLDOLVWZRUNVKRSDIWHUDQDFFLGHQW 2FFXSDQWVDIHW\$

$*127('DPDJHFDXVHGE\WUDSSLQJWKHVHDWEHOW,IDQXQXVHGVHDWEHOWLVQRWIXOO\UHWUDFWHGLWPD\EHFRPHWUDSSHGLQWKHGRRURULQWKHVHDWPHFKDQLVP#$OZD\VHQVXUHWKDWDQXQXVHGVHDWEHOWLVIXOO\UHWUDFWHG)DVWHQLQJVHDWEHOWV,IWKHVHDWEHOWLVSXOOHGTXLFNO\RUVKDUSO\WKHVHDWEHOWUHWUDFWRUORFNV7KHVHDWEHOWVWUDSFDQƃQRWEHSXOOHGRXWDQ\IXUWKHU#$OZD\VHQJDJHVHDWEHOWWRQJXHRIWKHVHDWEHOWLQWRVHDWEHOWEXFNOHRIWKHFRUƃUHVSRQGLQJVHDW9HKLFOHVZLWK35(6$)(LIWKHIURQWVHDWEHOWLVQRWSXOOHGWLJKWDFURVV\RXUERG\WKHVHDWEHOWDGMXVWPHQWPD\DXWRPDWLFDOO\DSSO\DFHUWDLQWLJKWHQLQJIRUFH'RQRWKROGWKHVHDWEHOWWLJKWO\ZKLOHLWLVDGMXVWLQJ<RXFDQDFWLYDWHDQGGHDFWLƃYDWHWKHVHDWEHOWDGMXVWPHQWIXQFWLRQXVLQJWKHPXOWLPHGLDV\VWHP9HKLFOHVZLWKDXWRPDWLFIURQWSDVVHQJHUIURQWDLUEDJGHDFWLYDWLRQV\VWHP*127('HSOR\PHQWRIWKHVHDWEHOWWHQƃVLRQHUDQGVLGHLPSDFWDLUEDJZKHQWKHIURQWSDVVHQJHUVHDWLVXQRFFXSLHG,IWKHVHDWEHOWWRQJXHLVHQJDJHGLQWKHVHDWEHOWEXFNOHRIWKHXQRFFXSLHGIURQWSDVVHQJHUVHDWWKHVHDWEHOWWHQVLRQHUDQGWKHVLGHLPSDFWDLUEDJPD\DOVRGHSOR\LQWKHHYHQWRIDQDFFLGHQWDORQJZLWKRWKHUV\VƃWHPV#2QO\RQHSHUVRQVKRXOGXVHHDFKVHDWEHOWDWDQ\RQHWLPH9HKLFOHVZLWKRXWDXWRPDWLFIURQWSDVVHQJHUIURQWDLUEDJGHDFWLYDWLRQV\VWHP2FFXSDQWVDIHW\ $

$*127('HSOR\PHQWRIWKHVHDWEHOWWHQƃVLRQHUZKHQWKHIURQWSDVVHQJHUVHDWLVXQRFFXSLHG,IWKHVHDWEHOWWRQJXHLVHQJDJHGLQWKHVHDWEHOWEXFNOHRIWKHXQRFFXSLHGIURQWSDVVHQJHUVHDWWKHVHDWEHOWWHQVLRQHUPD\DOVRGHSOR\LQWKHHYHQWRIDQDFFLGHQWDORQJZLWKRWKHUV\VWHPV#2QO\RQHSHUVRQVKRXOGXVHHDFKVHDWEHOWDWDQ\RQHWLPH5HOHDVLQJDVHDWEHOW#3UHVVWKHUHOHDVHEXWWRQLQWKHVHDWEHOWEXFNOHDQGJXLGHWKHVHDWEHOWEDFNZLWKWKHVHDWEHOWWRQJXH$FWLYDWLQJGHDFWLYDWLQJVHDWEHOWDGMXVWPHQWYLDWKHPXOWLPHGLDV\VWHP0XOWLPHGLDV\VWHP,.6HWWLQJV.9HKLFOH#$FWLYDWHRUGHDFWLYDWH%HOWDGMXVWPHQW6HDWEHOWZDUQLQJIXQFWLRQIRUWKHGULYHUDQGIURQWSDVVHQJHU7KHéVHDWEHOWZDUQLQJODPSLQWKHLQVWUXƃPHQWGLVSOD\LVDUHPLQGHUWKDWDOOYHKLFOHRFFXƃSDQWVPXVWZHDUWKHLUVHDWEHOWVFRUUHFWO\,QDGGLWLRQDQDFRXVWLFZDUQLQJWRQHPD\VRXQG$VVRRQDVWKHGULYHUDQGIURQWSDVVHQJHUIDVWHQWKHLUVHDWEHOWVWKHVHDWEHOWZDUQLQJJRHVRXW)XQFWLRQRIWKHUHDUVHDWEHOWVWDWXVGLVSOD\7KHUHDUVHDWEHOWVWDWXVGLVSOD\LVRQO\DYDLODEOHIRUFHUWDLQFRXQWULHV7KHUHDUVHDWEHOWVWDWXVGLVSOD\LQIRUPV\RXZKLFKUHDUVHDWEHOWLVQRWIDVWHQHG<RXFDQLPPHGLDWHO\GLVPLVVWKHUHDUVHDWEHOWVWDWXVGLVSOD\XVLQJWKHEDFNEXWWRQRQWKHOHIWKDQGVLGHRIWKHVWHHULQJZKHHOĺSDJH,IDYHKLFOHRFFXSDQWXQIDVWHQVDVHDWEHOWLQWKHUHDUZKLOHWKHYHKLFOHLVPRWLRQWKHUHDUVHDWEHOWVWDWXVGLVSOD\LVGLVSOD\HGDJDLQ,QDGGLWLRQDQDFRXVWLFZDUQLQJWRQHPD\VRXQG,QWKLVFDVHWKHUHDUVHDWEHOWVWDWXVGLVSOD\FDQQRWEHKLGGHQXVLQJWKHEDFNEXWWRQRQWKHOHIWKDQGVLGHRIWKHVWHHULQJZKHHO 2FFXSDQWVDIHW\$

$$LUEDJV2YHUYLHZRIDLUEDJV.QHHDLUEDJ'ULYHUVDLUEDJ)URQWSDVVHQJHUIURQWDLUEDJ:LQGRZDLUEDJ6LGHLPSDFWDLUEDJ7KHLQVWDOODWLRQORFDWLRQRIDQDLUEDJLVLGHQWLILHGE\WKH$,5%$*V\PERO:KHQDFWLYDWHGDQDLUEDJFDQSURYLGHDGGLWLRQDOSURWHFWLRQIRUWKHUHVSHFWLYHYHKLFOHRFFXSDQW3RWHQWLDOSURWHFWLRQIURPHDFKDLUEDJ$,5%$* 3RWHQWLDOSURWHFWLRQIRU«.QHHDLUEDJ 7KLJKNQHHDQGORZHUOHJ'ULYHUVDLUEDJIURQWSDVVHQJHUIURQWDLUEDJ+HDGDQGULEFDJH:LQGRZDLUEDJ +HDG6LGHLPSDFWDLUƃEDJ7KRUD[DQGSHOYLV7KHIURQWSDVVHQJHUIURQWDLUEDJFDQRQO\EHGHSOR\HGLQDQDFFLGHQWLIWKH3$66(1*(5$,5%$*2))LQGLFDWRUODPSLVRII,IWKHIURQWSDVVHQJHUVHDWLVRFFXSLHGPDNHVXUHERWKEHIRUHDQGGXULQJWKHMRXUQH\WKDWWKHVWDWXVRIWKHIURQWSDVVHQJHUIURQWDLUEDJLVFRUUHFWĺSDJHĺSDJH*127(,PSRUWDQWSRLQWVWRUHPHPEHULIWKHIURQWSDVVHQJHUVHDWLVXQRFFXSLHG,QDQDFFLGHQWWKHFRPSRQHQWVRIWKHUHVWUDLQWV\VWHPPD\GHSOR\XQQHFHVVDULO\RQWKHIURQWSDVVHQJHUVLGHLI=7KHUHDUHKHDY\REMHFWVRQWKHIURQWSDVVHQJHUVHDW=7KHVHDWEHOWWRQJXHLVHQJDJHGLQWKHVHDWEHOWEXFNOHRIWKHIURQWSDVVHQJHUVHDWDQGWKHIURQWSDVVHQJHUVHDWLVXQRFFXSLHG#6WRZREMHFWVLQDVXLWDEOHSODFH#2QO\RQHSHUVRQVKRXOGXVHHDFKVHDWEHOWDWDQ\RQHWLPH3URWHFWLRQE\WKHDLUEDJV'HSHQGLQJRQWKHDFFLGHQWVLWXDWLRQDQDLUEDJPD\VXSSOHPHQWWKHSURWHFWLRQRIIHUHGE\DFRUƃUHFWO\IDVWHQHGVHDWEHOW2FFXSDQWVDIHW\ $

$&:$51,1*5LVNRILQMXU\RUGHDWKGXHWRLQFRUUHFWVHDWSRVLWLRQ,I\RXGHYLDWHIURPWKHFRUUHFWVHDWSRVLWLRQWKHDLUEDJFDQQRWSHUIRUPLWVLQWHQGHGSURƃWHFWLYHIXQFWLRQDQGGHSOR\PHQWPD\HYHQFDXVHIXUWKHULQMXULHV7RDYRLGKD]DUGRXVVLWXDWLRQVDOZD\VPDNHVXUHWKDWDOOYHKLFOHRFFXSDQWV=+DYHWKHLUVHDWEHOWIDVWHQHGFRUUHFWO\LQFOXGLQJSUHJQDQWZRPHQ=$UHVHDWHGSURSHUO\DQGNHHSDVIDUDZD\DVSRVVLEOHIURPWKHDLUEDJV=2EVHUYHWKHIROORZLQJLQIRUPDWLRQ#$OZD\VPDNHVXUHWKDWWKHUHDUHQRREMHFWVEHWZHHQWKHDLUEDJDQGYHKLFOHRFFXSDQW7RDYRLGWKHULVNVUHVXOWLQJIURPWKHGHSOR\PHQWRIDQDLUEDJHDFKYHKLFOHRFFXSDQWPXVWREVHUYHWKHIROORZLQJLQIRUPDWLRQ=%HIRUHVWDUWLQJ\RXUMRXUQH\DGMXVW\RXUVHDWFRUUHFWO\WKHGULYHUVVHDWDQGIURQWSDVVHQJHUVHDWVKRXOGEHPRYHGDVIDUEDFNDVSRVVLEOH:KHQGRLQJVRDOZD\VREVHUYHWKHLQIRUPDƃWLRQRQWKHFRUUHFWGULYHUVVHDWSRVLWLRQĺSDJH=2QO\KROGWKHVWHHULQJZKHHOE\WKHVWHHULQJZKHHOULP7KLVDOORZVWKHDLUEDJWREHIXOO\GHSOR\HG=$OZD\VOHDQDJDLQVWWKHVHDWEDFNUHVWZKHQWKHYHKLFOHLVLQPRWLRQ'RQRWOHDQIRUZDUGVRUDJDLQVWWKHGRRURUVLGHZLQGRZ<RXPD\RWKHUZLVHEHLQWKHGHSOR\PHQWDUHDRIWKHDLUEDJV=$OZD\VNHHS\RXUIHHWRQWKHIORRU'RQRWSXW\RXUIHHWRQWKHFRFNSLWIRUH[DPSOH<RXUIHHWPD\RWKHUZLVHEHLQWKHGHSOR\ƃPHQWDUHDRIWKHDLUEDJ=,IFKLOGUHQDUHWUDYHOOLQJLQWKHYHKLFOHREVHUYHWKHDGGLWLRQDOQRWHVĺSDJH=$OZD\VVWRZDQGVHFXUHREMHFWVFRUUHFWO\2EMHFWVLQWKHYHKLFOHLQWHULRUPD\SUHYHQWDQDLUEDJIURPIXQFWLRQLQJFRUUHFWO\(DFKYHKLFOHRFFXSDQWPXVWDOZD\VPDNHVXUHRIWKHIROORZƃLQJ=7KHUHDUHQRSHRSOHDQLPDOVRUREMHFWVEHWZHHQWKHYHKLFOHRFFXSDQWVDQGDQDLUƃEDJ=7KHUHDUHQRREMHFWVEHWZHHQWKHVHDWGRRUDQGGRRUSLOODU%SLOODU=7KHUHDUHQRKDUGREMHFWVHJFRDWKDQJHUVKDQJLQJRQWKHJUDEKDQGOHVRUFRDWKRRNV=7KHUHDUHQRDFFHVVRU\SDUWVVXFKDVFXSKROGHUVDWWDFKHGWRWKHYHKLFOHZLWKLQWKHGHSOR\PHQWDUHDRIDQDLUEDJHJRQGRRUVVLGHZLQGRZVRUVLGHSDQHOOLQJ=7KHUHDUHQRKHDY\VKDUSHGJHGRUIUDJLOHREMHFWVLQWKHSRFNHWVRI\RXUFORWKLQJ6WRUHVXFKREMHFWVLQDVXLWDEOHSODFH 2FFXSDQWVDIHW\$

$5HGXFHGDLUEDJSURWHFWLRQ&:$51,1*5LVNRILQMXU\IURPPRGLILFDƃWLRQVWRWKHDLUEDJFRYHU,I\RXPRGLI\DQDLUEDJFRYHURUDIIL[REMHFWVVXFKDVVWLFNHUVWRLWWKHDLUEDJFDQQRORQƃJHUIXQFWLRQFRUUHFWO\#1HYHUPRGLI\DQDLUEDJFRYHUDQGGRQRWDIIL[REMHFWVWRLW7KHLQVWDOODWLRQORFDWLRQRIDQDLUEDJLVLGHQWLILHGE\WKH$,5%$*V\PEROĺSDJH&:$51,1*5LVNRILQMXU\RUGHDWKGXHWRWKHXVHRIXQVXLWDEOHVHDWFRYHUV8QVXLWDEOHVHDWFRYHUVFDQREVWUXFWRUSUHƃYHQWWKHGHSOR\PHQWRIWKHDLUEDJVLQWHJUDƃWHGLQWRWKHVHDWV&RQVHTXHQWO\WKHDLUEDJVFDQQRWSURWHFWYHKLFOHRFFXSDQWVDVWKH\DUHGHVLJQHGWRGR,QDGGLWLRQWKHRSHUDWLRQRIWKHDXWRƃPDWLFIURQWSDVVHQJHUDLUEDJVKXWRIIFRXOGEHUHVWULFWHG#<RXVKRXOGRQO\XVHVHDWFRYHUVWKDWKDYHEHHQDSSURYHGIRUWKHFRUUHVSRQGƃLQJVHDWVE\0HUFHGHV%HQ]&:$51,1*5LVNRILQMXU\GXHWRPDOIXQFƃWLRQVRIWKHVHQVRUVLQWKHGRRUSDQHOOLQJ6HQVRUVWRFRQWUROWKHDLUEDJVDUHORFDWHGLQWKHGRRUV0RGLILFDWLRQVRUZRUNQRWSHUƃIRUPHGFRUUHFWO\WRWKHGRRUVRUGRRUSDQHOƃOLQJDVZHOODVGDPDJHGGRRUVFDQOHDGWRWKHIXQFWLRQRIWKHVHQVRUVEHLQJLPSDLUHG7KHDLUEDJVPLJKWWKHUHIRUHQRWIXQFWLRQSURSHUO\DQ\PRUH&RQVHTXHQWO\WKHDLUEDJVFDQQRWSURWHFWYHKLFOHRFFXSDQWVDVWKH\DUHGHVLJQHGWRGR#1HYHUPRGLI\WKHGRRUVRUSDUWVRIWKHGRRUV#$OZD\VKDYHZRUNRQWKHGRRUVRUGRRUSDQHOOLQJFDUULHGRXWDWDTXDOLILHGVSHƃFLDOLVWZRUNVKRS&:$51,1*5LVNRILQMXU\GXHWRGHSOR\HGDLUEDJ$GHSOR\HGDLUEDJQRORQJHURIIHUVDQ\SURƃWHFWLRQDQGFDQQRWSURYLGHWKHLQWHQGHGSURƃWHFWLYHIXQFWLRQLQWKHHYHQWRIDQDFFLGHQW#+DYHWKHYHKLFOHWRZHGWRDTXDOLILHGVSHFLDOLVWZRUNVKRSLQRUGHUWRKDYHWKHGHSOR\HGDLUEDJUHSODFHG+DYHGHSOR\HGDLUEDJVUHSODFHGLPPHGLDWHO\6WDWXVRIWKHIURQWSDVVHQJHUDLUEDJV)XQFWLRQRIWKHDXWRPDWLFIURQWSDVVHQJHUIURQWDLUEDJGHDFWLYDWLRQV\VWHP7KHDXWRPDWLFIURQWSDVVHQJHUIURQWDLUEDJGHDFƃWLYDWLRQV\VWHPLVDEOHWRGHWHFWZKHWKHUWKHIURQWSDVVHQJHUVHDWLVRFFXSLHGE\DSHUVRQRUDFKLOGUHVWUDLQWV\VWHP7KHIURQWSDVVHQJHUIURQWDLUEDJLVHQDEOHGRUGLVDEOHGDFFRUGLQJO\2FFXSDQWVDIHW\ $

$:KHQILWWLQJDFKLOGUHVWUDLQWV\VWHPWRWKHIURQWSDVVHQJHUVHDWDOZD\VPDNHVXUHRIWKHIROORZƃLQJ=(QVXUHWKDWWKHFKLOGUHVWUDLQWV\VWHPLVSRVLƃWLRQHGFRUUHFWO\ĺSDJH=$OZD\VREVHUYHWKHFKLOGUHVWUDLQWV\VWHPPDQXIDFWXUHUVLQVWDOODWLRQLQVWUXFWLRQV=1HYHUSODFHREMHFWVHJFXVKLRQVXQGHURUEHKLQGWKHFKLOGUHVWUDLQWV\VWHP=)XOO\UHWUDFWWKHVHDWFXVKLRQOHQJWKDGMXVWƃPHQW=7KHHQWLUHEDVHRIWKHFKLOGUHVWUDLQWV\VWHPPXVWDOZD\VUHVWRQWKHVLWWLQJVXUIDFHRIWKHIURQWSDVVHQJHUVHDW=7KHEDFNUHVWRIWKHIRUZDUGIDFLQJFKLOGUHVWUDLQWV\VWHPPXVWDVIDUDVSRVVLEOHEHUHVWLQJRQWKHVHDWEDFNUHVWRIWKHIURQWSDVVHQJHUVHDW=7KHFKLOGUHVWUDLQWV\VWHPPXVWQRWWRXFKWKHURRIRUEHSXWXQGHUVWUDLQE\WKHKHDGUHVWUDLQWV$GMXVWWKHVHDWEDFNUHVWLQFOLQDƃWLRQDQGWKHKHDGUHVWUDLQWVHWWLQJDFFRUGƃLQJO\&:$51,1*5LVNRILQMXU\RUGHDWKGXHWRREMHFWVEHWZHHQWKHVHDWVXUIDFHDQGWKHFKLOGUHVWUDLQWV\VWHP2EMHFWVEHWZHHQWKHVHDWVXUIDFHDQGWKHFKLOGUHVWUDLQWV\VWHPFRXOGDIIHFWWKHIXQFƃWLRQRIWKHDXWRPDWLFIURQWSDVVHQJHUIURQWDLUEDJVKXWRII7KLVFRXOGUHVXOWLQWKHIURQWSDVVHQJHUIURQWDLUEDJQRWIXQFWLRQLQJDVLQWHQGHGGXULQJDQDFFLGHQW#'RQRWSODFHDQ\REMHFWVEHWZHHQWKHVLWWLQJVXUIDFHDQGWKHFKLOGUHVWUDLQWV\VWHP#7KHHQWLUHEDVHRIWKHFKLOGUHVWUDLQWV\VWHPPXVWDOZD\VUHVWRQWKHVLWWLQJVXUIDFHRIWKHIURQWSDVVHQJHUVHDW#7KHEDFNUHVWRIWKHIRUZDUGIDFLQJFKLOGUHVWUDLQWV\VWHPPXVWDVIDUDVSRVVLƃEOHEHUHVWLQJRQWKHVHDWEDFNUHVWRIWKHIURQWSDVVHQJHUVHDW#$OZD\VFRPSO\ZLWKWKHFKLOGUHVWUDLQWV\VWHPPDQXIDFWXUHUVLQVWDOODWLRQLQVWUXFWLRQV$SHUVRQRQWKHIURQWSDVVHQJHUVHDWPXVWREVHUYHWKHIROORZLQJLQIRUPDWLRQ=)DVWHQVHDWEHOWVFRUUHFWO\ĺSDJH=6LWLQDQDOPRVWXSULJKWVHDWSRVLWLRQZLWKWKHLUEDFNDJDLQVWWKHVHDWEDFNUHVW=6LWZLWKWKHLUIHHWUHVWLQJRQWKHIORRULISRVƃVLEOH2WKHUZLVHWKHIURQWSDVVHQJHUIURQWDLUEDJPD\EHGLVDEOHGE\PLVWDNHIRUH[DPSOHLQWKHIROƃORZLQJVLWXDWLRQV=7KHIURQWSDVVHQJHUWUDQVIHUVWKHLUZHLJKWE\VXSSRUWLQJWKHPVHOYHVRQDYHKLFOHDUPUHVW=7KHIURQWSDVVHQJHUVLWVLQVXFKDZD\WKDWWKHLUZHLJKWLVUDLVHGIURPWKHVLWWLQJVXUƃIDFH&:$51,1*5LVNRILQMXU\RUGHDWKGXHWRGHDFWLYDWHGIURQWSDVVHQJHUDLUEDJ,IWKH3$66(1*(5$,5%$*2))LQGLFDWRUODPSLVOLWWKHIURQWSDVVHQJHUDLUEDJLVGLVDƃEOHG,WZLOOQRWEHGHSOR\HGLQWKHHYHQWRIDQDFFLGHQWDQGFDQQRWSHUIRUPLWVLQWHQGHGSURWHFWLYHIXQFWLRQ 2FFXSDQWVDIHW\$

$$SHUVRQLQWKHIURQWSDVVHQJHUVHDWFRXOGWKHQIRUH[DPSOHFRPHLQWRFRQWDFWZLWKWKHYHKLFOHLQWHULRUHVSHFLDOO\LIWKHSHUVRQLVVLWWLQJWRRFORVHWRWKHFRFNSLW,IWKHIURQWSDVVHQJHUVHDWLVRFFXSLHGDOZD\VHQVXUHWKDW=7KHFODVVLILFDWLRQRIWKHSHUVRQLQWKHIURQWSDVVHQJHUVHDWLVFRUUHFWDQGWKHIURQWSDVVHQJHUDLUEDJLVHQDEOHGRUGLVDƃEOHGLQDFFRUGDQFHZLWKWKHSHUVRQLQWKHIURQWSDVVHQJHUVHDW=7KHIURQWSDVVHQJHUVHDWKDVEHHQPRYHGDVIDUEDFNDVSRVVLEOH=7KHSHUVRQLVVHDWHGFRUUHFWO\#(QVXUHERWKEHIRUHDQGGXULQJWKHMRXUƃQH\WKDWWKHVWDWXVRIWKHIURQWSDVVHQJHUDLUEDJLVFRUUHFW,IWKHIURQWSDVVHQJHUVHDWLVRFFXSLHGWKHFODVƃVLILFDWLRQRIWKHSHUVRQRUFKLOGUHVWUDLQWV\VWHPRQWKHIURQWSDVVHQJHUVHDWWDNHVSODFHDIWHUWKHIURQWSDVVHQJHUIURQWDLUEDJGHDFWLYDWLRQV\VWHPVHOIWHVW7KHVWDWXVRIWKHIURQWSDVVHQJHUIURQWDLUEDJLVGLVSOD\HG$OZD\VREVHUYHWKHQRWHVRQWKHIXQFWLRQRIWKH3$66(1*(5$,5%$*LQGLFDWRUODPSVĺSDJHĺSDJH)XQFWLRQRIWKH3$66(1*(5$,5%$*LQGLFDƃWRUODPSV6HOIWHVWRIWKHDXWRPDWLFIURQWSDVVHQJHUIURQWDLUEDJGHDFWLYDWLRQV\VWHP:KHQWKHLJQLWLRQLVVZLWFKHGRQDVHOIWHVWLVSHUIRUPHGGXULQJZKLFKWKHWZR3$66(1*(5$,5%$*21DQG2))LQGLFDWRUODPSVOLJKWXSVLPXOWDQHRXVO\7KHVWDWXVRIWKHIURQWSDVVHQJHUIURQWDLUEDJLVGLVSOD\HGDIWHUWKHVHOIWHVW=3$66(1*(5$,5%$*21OLJKWVXSIRUVHFRQGVVXEVHTXHQWO\ERWKLQGLFDWRUODPSVDUHRII3$66(1*(5$,5%$*21DQG2))WKHIURQWSDVVHQJHUIURQWDLUEDJLVDEOHWRGHSOR\LQWKHHYHQWRIDQDFFLGHQW=3$66(1*(5$,5%$*2))OLJKWVXSFRQWLQXƃRXVO\WKHIURQWSDVVHQJHUIURQWDLUEDJLVGLVƃDEOHG,WZLOOWKHQQRWEHGHSOR\HGLQWKHHYHQWRIDQDFFLGHQW,IWKH3$66(1*(5$,5%$*21LQGLFDWRUODPSLVRIIRQO\WKH3$66(1*(5$,5%$*2))LQGLFDWRUODPSVKRZVWKHVWDWXVRIWKHIURQWSDVVHQJHUIURQWDLUEDJ7KH3$66(1*(5$,5%$*2))LQGLƃFDWRUODPSPD\EHOLWFRQWLQXRXVO\RUEHRII,IWKH3$66(1*(5$,5%$*2))LQGLFDWRUODPSDQGWKHuUHVWUDLQWV\VWHPZDUQLQJODPS2FFXSDQWVDIHW\ $

$OLJKWXSVLPXOWDQHRXVO\WKHIURQWSDVVHQJHUVHDWPD\QRWEHXVHG$OVRLQWKLVFDVHGRQRWLQVWDOODFKLOGUHVWUDLQWV\VWHPRQWKHIURQWSDVVHQJHUVHDW+DYHWKHDXWRPDWLFIURQWSDVVHQJHUIURQWDLUEDJVKXWRIIFKHFNHGDQGUHSDLUHGLPPHGLDWHO\DWDTXDOLILHGVSHFLDOLVWZRUNVKRS6WDWXVGLVSOD\,IWKHIURQWSDVVHQJHUVHDWLVRFFXSLHGHQVXUHERWKEHIRUHDQGGXULQJWKHMRXUQH\WKDWWKHVWDƃWXVRIWKHIURQWSDVVHQJHUIURQWDLUEDJLVFRUUHFWIRUWKHFXUUHQWVLWXDWLRQ$IWHUILWWLQJDUHDUZDUGIDFLQJFKLOGUHVWUDLQWV\VWHPWRWKHIURQWSDVVHQJHUVHDW3$66(1*(5$,5%$*2))PXVWEHOLWFRQWLQXƃRXVO\&:$51,1*5LVNRILQMXU\RUGHDWKIURPXVLQJDUHDUZDUGIDFLQJFKLOGUHVWUDLQWV\VWHPZKHQWKHIURQWSDVVHQJHUDLUEDJLVHQDEOHG,I\RXVHFXUHDFKLOGLQDUHDUZDUGIDFLQJFKLOGUHVWUDLQWV\VWHPRQWKHIURQWSDVVHQJHUVHDWDQGWKH3$66(1*(5$,5%$*2))LQGLƃFDWRUODPSLVRIIWKHIURQWSDVVHQJHUDLUEDJFDQGHSOR\LQWKHHYHQWRIDQDFFLGHQW7KHFKLOGFRXOGEHVWUXFNE\WKHDLUEDJ$OZD\VHQVXUHWKDWWKHIURQWSDVVHQJHUDLUƃEDJLVGLVDEOHG7KH3$66(1*(5$,5%$*2))LQGLFDWRUODPSPXVWEHOLW1(9(5XVHDUHDUZDUGIDFLQJFKLOGUHVWUDLQWRQDVHDWSURWHFWHGE\DQ$&7,9()5217$,5%$*LQIURQWRILW'($7+RU6(5,286,1-85<WRWKH&+,/'FDQRFFXU:KHQILWWLQJDFKLOGUHVWUDLQWV\VWHPWRWKHIURQWSDVVHQJHUVHDWREVHUYHWKHYHKLFOHVSHFLILFLQIRUPDWLRQĺSDJH'HSHQGLQJRQWKHFKLOGUHVWUDLQWV\VWHPDQGWKHVWDWXUHRIWKHFKLOGWKH3$66(1*(5$,5%$*2))LQGLFDWRUODPSPD\EHRII,QWKLVFDVHGRQRWILWWKHUHDUZDUGIDFLQJFKLOGUHVWUDLQWV\VWHPWRWKHIURQWSDVVHQJHUVHDW,QVWHDGILWWKHUHDUZDUGIDFLQJFKLOGUHVWUDLQWV\VWHPWRDVXLWDEOHUHDUVHDW$IWHUILWWLQJDIRUZDUGIDFLQJFKLOGUHVWUDLQWV\VWHPWRWKHIURQWSDVVHQJHUVHDWGHSHQGƃLQJRQWKHFKLOGUHVWUDLQWV\VWHPDQGWKHVWDWXUHRIWKHFKLOG3$66(1*(5$,5%$*2))PD\EHOLWFRQWLQXRXVO\RUEHRII$OZD\VREVHUYHWKHIROƃORZLQJLQIRUPDWLRQ&:$51,1*5LVNRILQMXU\RUGHDWKGXHWRLQFRUUHFWSRVLWLRQLQJRIWKHIRUZDUGIDFLQJFKLOGUHVWUDLQWV\VWHP,I\RXVHFXUHDFKLOGLQDIRUZDUGIDFLQJFKLOGUHVWUDLQWV\VWHPRQWKHIURQWSDVVHQJHUVHDWDQG\RXSRVLWLRQWKHIURQWSDVVHQJHUVHDWWRRFORVHWRWKHGDVKERDUGLQWKHHYHQWRIDQDFFLGHQWWKHFKLOGFRXOG=FRPHLQWRFRQWDFWZLWKSDUWVRIWKHYHKLƃFOHVLQWHULRULIWKH3$66(1*(5$,5%$*2))LQGLFDWRUODPSLVOLWIRUH[DPSOH=EHVWUXFNE\WKHDLUEDJLIWKH3$66(1*(5$,5%$*2))LQGLFDWRUODPSLVRII#$OZD\VPRYHWKHIURQWSDVVHQJHUVHDWDVIDUEDFNDVSRVVLEOHDQGIXOO\UHWUDFWWKHVHDWFXVKLRQOHQJWKDGMXVWPHQW$OZD\VPDNHVXUHWKDWWKHVKRXOGHUEHOWVWUDSLVFRUUHFWO\URXWHGIURPWKHVHDWEHOWRXWOHWRQWKHYHKLFOHWRWKHVKRXOƃGHUEHOWJXLGHRQWKHFKLOGUHVWUDLQWV\Vƃ 2FFXSDQWVDIHW\$

$WHP7KHVKRXOGHUEHOWVWUDSPXVWEHURXWHGIRUZDUGVDQGGRZQZDUGVIURPWKHVHDWEHOWRXWOHW,IQHFHVVDU\DGMXVWWKHIURQWSDVVHQJHUVHDWDFFRUGLQJO\#$OZD\VREVHUYHWKHFKLOGUHVWUDLQWV\VƃWHPPDQXIDFWXUHUVLQVWDOODWLRQLQVWUXFƃWLRQV:KHQILWWLQJDFKLOGUHVWUDLQWV\VWHPWRWKHIURQWSDVVHQJHUVHDWREVHUYHWKHYHKLFOHVSHFLILFLQIRUPDWLRQĺSDJH,IDSHUVRQLVVLWWLQJLQWKHIURQWSDVVHQJHUVHDW3$66(1*(5$,5%$*2))PD\EHOLWFRQƃWLQXRXVO\RUEHRIIGHSHQGLQJRQWKHSHUVRQVVWDWXUH$SHUVRQRQWKHIURQWSDVVHQJHUVHDWPXVWDOZD\VREVHUYHWKHIROORZLQJLQIRUPDWLRQ=,IWKHIURQWSDVVHQJHUVHDWLVRFFXSLHGZLWKDQDGXOWRUDSHUVRQZLWKDVWDWXUHFRUUHƃVSRQGLQJWRWKDWRIDQDGXOWWKH3$66(1*(5$,5%$*2))LQGLFDWRUODPSPXVWEHRII7KLVLQGLFDWHVWKDWWKHIURQWSDVVHQJHUIURQWDLUƃEDJLVHQDEOHG,IWKH3$66(1*(5$,5%$*2))LQGLFDWRUODPSLVOLWFRQWLQXRXVO\DQDGXOWRUSHUVRQZLWKDEXLOGFRUUHVSRQGLQJWRWKDWRIDQDGXOWVKRXOGQRWXVHWKHIURQWSDVVHQJHUVHDW,QVWHDGWKH\VKRXOGXVHDUHDUVHDW=,IWKHIURQWSDVVHQJHUVHDWLVRFFXSLHGE\DSHUVRQRIVPDOOHUVWDWXUHHJDWHHQDJHURUVPDOODGXOWWKH3$66(1*(5$,5%$*2))LQGLFDWRUODPSHLWKHUOLJKWVXSFRQWLQXRXVO\RUUHPDLQVRIIGHSHQGLQJRQWKHUHVXOWRIWKHFODVVLILFDWLRQ,IWKH3$66(1*(5$,5%$*2))LQGLFDWRUODPSLVRIIPRYHWKHIURQWSDVVHQJHUVHDWDVIDUEDFNDVSRVVLEOHRUDSHUVRQRIVPDOOHUVWDWXUHVKRXOGXVHDUHDUVHDW,IWKH3$66(1*(5$,5%$*2))LQGLFDWRUODPSLVOLWFRQWLQXRXVO\DSHUVRQRIVPDOOHUVWDWXUHVKRXOGQRWXVHWKHIURQWSDVVHQJHUVHDW&:$51,1*5LVNRILQMXU\RUGHDWKZKHQWKH3$66(1*(5$,5%$*2))LQGLFDWRUODPSLVOLW,IWKH3$66(1*(5$,5%$*2))LQGLFDWRUODPSUHPDLQVOLWDIWHUWKHV\VWHPVHOIWHVWWKHIURQWSDVVHQJHUDLUEDJLVGLVDEOHG,WZLOOQRWEHGHSOR\HGLQWKHHYHQWRIDQDFFLGHQW,QWKLVFDVHWKHIURQWSDVVHQJHUDLUEDJFDQƃQRWSHUIRUPLWVLQWHQGHGSURWHFWLYHIXQFWLRQHJZKHQDSHUVRQLVVHDWHGLQWKHIURQWSDVVHQJHUVHDW7KDWSHUVRQFRXOGIRUH[DPSOHFRPHLQWRFRQWDFWZLWKWKHYHKLFOHLQWHULRUHVSHFLDOO\LIWKHSHUVRQLVVLWWLQJWRRFORVHWRWKHFRFNSLW,IWKHIURQWSDVVHQJHUVHDWLVRFFXSLHGDOZD\VHQVXUHWKDW=7KHFODVVLILFDWLRQRIWKHSHUVRQLQWKHIURQWSDVVHQJHUVHDWLVFRUUHFWDQGWKHIURQWSDVVHQJHUDLUEDJLVHQDEOHGRUGLVDƃEOHGLQDFFRUGDQFHZLWKWKHSHUVRQLQWKHIURQWSDVVHQJHUVHDW2FFXSDQWVDIHW\ $

$=7KHSHUVRQLVVHDWHGSURSHUO\ZLWKDFRUƃUHFWO\IDVWHQHGVHDWEHOW=7KHIURQWSDVVHQJHUVHDWKDVEHHQPRYHGDVIDUEDFNDVSRVVLEOH)XUWKHUUHODWHGVXEMHFWV=&KLOGUHVWUDLQWV\VWHPRQWKHIURQWSDVVHQJHUVHDWĺSDJH=6XLWDEOHSRVLWLRQLQJRIWKHFKLOGUHVWUDLQWV\VƃWHPĺSDJH35(6$)(V\VWHP35(6$)(DQWLFLSDWRU\RFFXSDQWSURWHFƃWLRQ35(6$)(LVDEOHWRGHWHFWFHUWDLQFULWLFDOGULYƃLQJVLWXDWLRQVDQGLPSOHPHQWSUHHPSWLYHPHDVƃXUHVWRSURWHFWWKHYHKLFOHRFFXSDQWV35(6$)(FDQLPSOHPHQWWKHIROORZLQJPHDVƃXUHVLQGHSHQGHQWO\RIHDFKRWKHU=7LJKWHQLQJWKHVHDWEHOWVRQWKHGULYHUVVHDWDQGIURQWSDVVHQJHUVHDW=&ORVLQJWKHVLGHZLQGRZV=9HKLFOHVZLWKVOLGLQJVXQURRIFORVLQJWKHVOLGLQJVXQURRI=9HKLFOHVZLWKPHPRU\IXQFWLRQPRYLQJWKHIURQWSDVVHQJHUVHDWWRDPRUHIDYRXUDƃEOHVHDWSRVLWLRQ=35(6$)(6RXQGSURYLGHGWKDWWKHPXOWLƃPHGLDV\VWHPLVVZLWFKHGRQJHQHUDWHVDEULHIQRLVHVLJQDOWRVWLPXODWHWKHLQQDWHSURƃWHFWLYHPHFKDQLVPRIDSHUVRQVKHDULQJ*127('DPDJHFDXVHGE\REMHFWVLQWKHIRRWZHOORUEHKLQGWKHVHDW7KHDXWRPDWLFDGMXVWPHQWRIWKHVHDWSRVLƃWLRQPD\UHVXOWLQGDPDJHWRWKHVHDWDQGRUWKHREMHFW#6WRZREMHFWVLQDVXLWDEOHSODFH5HYHUVLQJWKH35(6$)(V\VWHPPHDVXUHV,IDQDFFLGHQWGLGQRWRFFXUWKHSUHHPSWLYHPHDVXUHVWKDWZHUHWDNHQDUHUHYHUVHG<RXZLOOQHHGWRSHUIRUPFHUWDLQVHWWLQJV\RXUƃVHOI#,IWKHVHDWEHOWSUHWHQVLRQLQJLVQRWUHGXFHGPRYHWKHVHDWEDFNUHVWEDFNVOLJKWO\7KHORFNLQJPHFKDQLVPUHOHDVHV)XQFWLRQRI35(6$)(3/86DQWLFLSDWRU\RFFXSDQWSURWHFWLRQSOXV35(6$)(3/86FDQGHWHFWFHUWDLQLPSDFWVSDUWLFXODUO\DQLPPLQHQWUHDULPSDFWDQGWDNHSUHHPSWLYHPHDVXUHVWRSURWHFWWKHYHKLFOHRFFXSDQWV7KHVHPHDVXUHVFDQQRWQHFHVVDULO\SUHYHQWDQLPPLQHQWLPSDFW35(6$)(3/86FDQLPSOHPHQWWKHIROORZLQJPHDVXUHVLQGHSHQGHQWO\RIHDFKRWKHU=7LJKWHQLQJWKHVHDWEHOWVRQWKHGULYHUVVHDWDQGIURQWSDVVHQJHUVHDW=$FWLYDWLQJWKHUHDUKD]DUGZDUQLQJOLJKWVDWDKLJKHUIODVKLQJIUHTXHQF\=,QFUHDVLQJEUDNHSUHVVXUHZKHQWKHYHKLFOHLVVWDWLRQDU\7KLVEUDNHDSSOLFDWLRQLVFDQFHOƃOHGDXWRPDWLFDOO\ZKHQWKHYHKLFOHSXOOVDZD\ 2FFXSDQWVDIHW\$

$,IDQDFFLGHQWGLGQRWRFFXUWKHSUHHPSWLYHPHDVXUHVWKDWZHUHWDNHQDUHUHYHUVHG6\VWHPOLPLWDWLRQV7KHV\VWHPZLOOQRWLQLWLDWHDQ\DFWLRQLQWKHIROƃORZLQJVLWXDWLRQV=ZKHQUHYHUVLQJRU=ZKHQWKHYHKLFOHLVWRZLQJDWUDLOHUDQGWKHUHLVDULVNRIDUHDULPSDFW7KHV\VWHPZLOOQRWLQLWLDWHDQ\EUDNLQJDSSOLFDƃWLRQLQWKHIROORZLQJVLWXDWLRQV=ZKLOVWGULYLQJRU=ZKHQHQWHULQJRUH[LWLQJDSDUNLQJVSDFHZKLOHXVLQJ$FWLYH3DUNLQJ$VVLVW&KLOGUHQLQWKHYHKLFOH1RWHVRQWKHVDIHWUDQVSRUWDWLRQRIFKLOGUHQ&:$51,1*5LVNRIDFFLGHQWDQGLQMXU\GXHWRFKLOGUHQOHIWXQDWWHQGHGLQWKHYHKLFOH,I\RXOHDYHFKLOGUHQXQDWWHQGHGLQWKHYHKLƃFOHWKH\PD\EHDEOHWRVHWWKHYHKLFOHLQPRWLRQIRUH[DPSOHE\=5HOHDVLQJWKHSDUNLQJEUDNH=6KLIWLQJWKHDXWRPDWLFWUDQVPLVVLRQRXWRISDUNSRVLWLRQ]RUVKLIWLQJPDQXDOWUDQVPLVVLRQLQWRLGOHSRVLWLRQ=6WDUWLQJWKHHQJLQH,QDGGLWLRQWKH\PD\RSHUDWHYHKLFOHHTXLSƃPHQWDQGEHFRPHWUDSSHG#1HYHUOHDYHFKLOGUHQDQGDQLPDOVXQDWƃWHQGHGLQWKHYHKLFOH#:KHQOHDYLQJWKHYHKLFOHDOZD\VWDNHWKHNH\ZLWK\RXDQGORFNWKHYHKLFOH7KLVDOVRDSSOLHVWRWKH'LJLWDO9HKLFOH.H\VWLFNHUDQGPRELOHSKRQHVLIWKH'LJLWDO9HKLFOH.H\LQWKHVPDUWSKRQHIXQFWLRQLVDFWLYDWHGYLDWKH0HUFHGHVPHFRQQHFWZHEDSS&:$51,1*7KLVSRVHVDQLQFUHDVHGULVNRIGHDWKGXHWRKHDWVWURNHRUH[SRVXUHWRFROGLQWKHYHKLFOH,ISHUVRQV²SDUWLFXODUO\FKLOGUHQ²H[SHULƃHQFHSURORQJHGH[SRVXUHWRH[WUHPHO\KLJKRUORZWHPSHUDWXUHVWKLVSRVHVDULVNRILQMXU\RUHYHQIDWDOLQMXU\#1HYHUOHDYHDQ\RQH²SDUWLFXODUO\FKLOƃGUHQ²XQDWWHQGHGLQWKHYHKLFOH&:$51,1*5LVNRIEXUQVZKHQWKHFKLOGVHDWLVH[SRVHGWRGLUHFWVXQOLJKW,IWKHFKLOGUHVWUDLQWV\VWHPLVH[SRVHGWRGLUHFWVXQOLJKWRUKHDWSDUWVFRXOGKHDWXS&KLOGUHQFRXOGVXIIHUEXUQVRQWKHVHSDUWVSDUWLFXODUO\RQPHWDOOLFSDUWVRIWKHFKLOGUHVWUDLQWV\VWHP2FFXSDQWVDIHW\ $

$#$OZD\VPDNHVXUHWKDWWKHFKLOGUHVWUDLQWV\VWHPLVQRWH[SRVHGWRGLUHFWVXQOLJKW#3URWHFWLWZLWKDEODQNHWIRUH[DPSOH#,IWKHFKLOGUHVWUDLQWV\VWHPKDVEHHQH[SRVHGWRGLUHFWVXQOLJKWDOORZLWWRFRROEHIRUHVHFXULQJDFKLOGLQWRLW#1HYHUOHDYHFKLOGUHQXQDWWHQGHGLQWKHYHKLFOH7RLPSURYHSURWHFWLRQIRUFKLOGUHQ\RXQJHUWKDQ\HDUVROGRUXQGHUPLQKHLJKW0HUFHGHV%HQ]UHFRPPHQGV\RXREVHUYHWKHIROORZLQJLQIRUPDWLRQ=2QO\VHFXUHFKLOGUHQXVLQJDFKLOGUHVWUDLQWV\VWHPZKLFKLVDSSURSULDWHWRWKHKHLJKWDJHDQGZHLJKWRIWKHFKLOGDQGVXLWDEOHIRU0HUFHGHV%HQ]YHKLFOHV%HVXUHWRREVHUYHWKHLQVWUXFWLRQVIRUFRUUHFWXVHRIWKHFKLOGUHVWUDLQWV\VWHP=$OZD\VILWDFKLOGUHVWUDLQWV\VWHPWRDUHDUVHDWLISRVVLEOH=2QO\XVHWKHIROORZLQJVHFXULQJV\VWHPVIRUFKLOGUHVWUDLQWV\VWHPVWKHVHDWEHOWV\VWHPWKH,62),;RUL6L]HPRXQWLQJEUDFNHWVWKH7RS7HWKHUDQFKRUDJHV=7KHPDQXIDFWXUHUVLQVWDOODWLRQLQVWUXFWLRQVIRUWKHFKLOGUHVWUDLQWV\VWHP=7KHZDUQLQJODEHOVLQWKHYHKLFOHLQWHULRUDQGRQWKHFKLOGUHVWUDLQWV\VWHP&:$51,1*5LVNRILQMXU\RUGHDWKFDXVHGE\LQFRUUHFWLQVWDOODWLRQRIWKHFKLOGUHVWUDLQWV\VWHP,IWKHFKLOGUHVWUDLQWV\VWHPLVLQFRUUHFWO\LQVWDOOHGRQDVXLWDEOHVHDWLQJSRVLWLRQLWFDQQRWSHUIRUPLWVLQWHQGHGSURWHFWLYHIXQFƃWLRQ7KHFKLOGFDQQRWEHUHVWUDLQHGLQWKHHYHQWRIDQDFFLGHQWKHDY\EUDNLQJRUDVXGGHQFKDQJHRIGLUHFWLRQ#$OZD\VFRPSO\ZLWKWKHPDQXIDFWXUHUVLQVWDOODWLRQLQVWUXFWLRQVIRUWKHFKLOGUHVWUDLQWV\VWHPDQGLWVFRUUHFWXVH#0DNHVXUHWKDWWKHHQWLUHEDVHRIWKHFKLOGUHVWUDLQWV\VWHPDOZD\VUHVWVRQWKHVLWWLQJVXUIDFHRIWKHVHDW#1HYHUSODFHREMHFWVXQGHURUEHKLQGWKHFKLOGUHVWUDLQWV\VWHPHJFXVKƃLRQV#$OZD\VXVHFKLOGUHVWUDLQWV\VWHPVZLWKWKHRULJLQDOFRYHUGHVLJQHGIRUWKHP#$OZD\VUHSODFHGDPDJHGFRYHUVZLWKJHQXLQHFRYHUV&:$51,1*5LVNRILQMXU\RUGHDWKIURPXQVHFXUHGFKLOGUHVWUDLQWV\VWHPVLQWKHYHKLFOH,IWKHFKLOGUHVWUDLQWV\VWHPLVQRWFRUUHFWO\LQVWDOOHGRUVHFXUHGLWFRXOGUHOHDVHLQWKHHYHQWRIDQDFFLGHQWVXGGHQEUDNLQJRUDVXGGHQFKDQJHLQGLUHFWLRQ7KHFKLOGUHVWUDLQWV\VWHPFRXOGEHIOXQJDURXQGDQGKLWYHKLFOHRFFXSDQWV#$OZD\VILWFKLOGUHVWUDLQWV\VWHPVFRUƃUHFWO\HYHQZKHQQRWLQXVH 2FFXSDQWVDIHW\$

$#$OZD\VFRPSO\ZLWKWKHFKLOGUHVWUDLQWV\VWHPPDQXIDFWXUHUVLQVWDOODWLRQLQVWUXFWLRQV&:$51,1*5LVNRILQMXU\RUGHDWKFDXVHGE\WKHXVHRIGDPDJHGFKLOGUHVWUDLQWV\VWHPV&KLOGUHVWUDLQWV\VWHPVRUWKHLUUHWDLQLQJV\VƃWHPVWKDWKDYHEHHQVXEMHFWHGWRDORDGLQDQDFFLGHQWPD\WKHQQRWEHDEOHWRSHUIRUPWKHLULQWHQGHGSURWHFWLYHIXQFWLRQ7KHFKLOGFDQQRWEHUHVWUDLQHGLQWKHHYHQWRIDQDFFLGHQWKHDY\EUDNLQJRUDVXGGHQFKDQJHRIGLUHFWLRQ#$OZD\VUHSODFHFKLOGUHVWUDLQWV\VWHPVLPPHGLDWHO\WKDWKDYHEHHQGDPDJHGRULQYROYHGLQDQDFFLGHQW#+DYHWKHVHFXULQJV\VWHPVIRUWKHFKLOGUHVWUDLQWV\VWHPVFKHFNHGDWDTXDOLILHGVSHFLDOLVWZRUNVKRSEHIRUHLQVWDOOLQJDFKLOGUHVWUDLQWV\VWHPDJDLQ%8VH0HUFHGHV%HQ]FDUHSURGXFWVUHFRPƃPHQGHGE\0HUFHGHV%HQ]WRFOHDQFKLOGUHVWUDLQWV\VWHPV)XUWKHULQIRUPDWLRQFDQEHREWDLQHGDWDTXDOLILHGVSHFLDOLVWZRUNƃVKRS7KHIROORZLQJQRWHVPXVWEHREVHUYHG=:KHQILWWLQJDFKLOGUHVWUDLQWV\VWHPRQWKHIURQWSDVVHQJHUVHDWWKHLQIRUPDWLRQRQILWƃWLQJDFKLOGUHVWUDLQWV\VWHPRQWKHIURQWSDVVHQJHUVHDWĺSDJH=1RWHVRQDWWDFKLQJVXLWDEOHFKLOGUHVWUDLQWV\VWHPVĺSDJH=1RWHVRQUHFRPPHQGHGFKLOGUHVWUDLQWV\VƃWHPVĺSDJH=,QVWUXFWLRQVDQGVDIHW\QRWHVRQWKHDXWRƃPDWLFIURQWSDVVHQJHUIURQWDLUEDJVKXWRIIĺSDJH=6DIHW\QRWHVRQWKHVHDWEHOWĺSDJH=,QIRUPDWLRQRQWKHFRUUHFWXVHRIWKHVHDWEHOWĺSDJH,62),;DQGL6L]HFKLOGVHDWVHFXULQJV\VWHPV,QIRUPDWLRQRQWKH,62),;DQGL6L]HFKLOGVHDWVHFXULQJV\VWHPV&:$51,1*5LVNRILQMXU\RUIDWDOLQMXU\LIWKHFKLOGVHFXUHGZHLJKVPRUHWKDQWKHSHUPLVVLEOHJURVVZHLJKWIRUDQ,62),;RULƄ6L]HFKLOGUHVWUDLQWV\VWHP)RU,62),;RULƄ6L]HFKLOGUHVWUDLQWV\VWHPVLQZKLFKWKHFKLOGLVVHFXUHGXVLQJWKHVHDWEHOWLQWHJUDWHGLQWKHFKLOGUHVWUDLQWV\VWHPWKHSHUPLVVLEOHJURVVZHLJKWRIWKHFKLOGDQGFKLOGUHVWUDLQWV\VWHPLVNJ,IWKHFKLOGDQGWKHFKLOGUHVWUDLQWV\VWHPWRJHWKHUZHLJKPRUHWKDQNJWKH,62),;RULƄ6L]HFKLOGUHVWUDLQWV\VWHPZLWKLQWHJUDƃWHGVHDWEHOWGRHVQRWRIIHUVXIILFLHQWSURWHFƃWLRQ7RRPXFKORDGPD\EHSODFHGRQWKH,62),;RULƄ6L]HFKLOGUHVWUDLQWV\VWHPVDQGWKHFKLOGPD\QRWEHUHVWUDLQHGFRUUHFWO\LQWKHHYHQWRIDQDFFLGHQWIRUH[DPSOH#,IWKHFKLOGDQGWKHFKLOGUHVWUDLQWV\VƃWHPWRJHWKHUZHLJKPRUHWKDQNJRQO\XVHDQ,62),;RULƄ6L]HFKLOG2FFXSDQWVDIHW\ $

$UHVWUDLQWV\VWHPZLWKZKLFKWKHFKLOGLVVHFXUHGZLWKWKHYHKLFOHVHDWEHOW#$OVRVHFXUHWKHFKLOGUHVWUDLQWV\VWHPZLWKWKH7RS7HWKHUEHOWLIDYDLODEOH$OZD\VFRPSO\ZLWKWKHLQIRUPDWLRQDERXWWKHPDVVRIWKHFKLOGUHVWUDLQWV\VWHP=LQWKHPDQXIDFWXUHUVLQVWDOODWLRQDQGRSHUDWƃLQJLQVWUXFWLRQVIRUWKHFKLOGUHVWUDLQWV\VWHPXVHG=RQDODEHORQWKHFKLOGUHVWUDLQWV\VWHPLISUHVHQW5HJXODUO\FKHFNWKDWWKHSHUPLVVLEOHJURVVPDVVRIWKHFKLOGDQGFKLOGUHVWUDLQWV\VWHPLVVWLOOFRPSOLHGZLWK:KHQXVLQJDFKLOGUHVWUDLQWV\VWHPEHVXUHWRREVHUYHWKHPDQXIDFWXUHUVLQVWDOODWLRQDQGRSHUDWLQJLQVWUXFWLRQVDVZHOODVLWVFRUUHFWXVHDQGWKHVXLWDELOLW\RIWKHVHDWVIRUDWWDFKLQJDFKLOGUHVWUDLQWV\VWHP,62),;DQGL6L]HDUHVWDQGDUGLVHGVHFXULQJV\VƃWHPVIRUVSHFLDOUHVWUDLQWV\VWHPV,62),;FKLOGUHVWUDLQWV\VWHPVDUHDSSURYHGLQDFFRUGDQFHZLWK(&(5LƄ6L]HFKLOGUHVWUDLQWV\VWHPVDUHDSSURYHGLQDFFRUGDQFHZLWK(&(52QO\FKLOGUHVWUDLQWV\VWHPVWKDWKDYHEHHQDSSURYHGLQDFFRUGDQFHZLWK(&(5PD\EHDWWDFKHGWR,62),;PRXQWLQJEUDFNHWV7KHIROORZLQJFKLOGUHVWUDLQWV\VWHPVFDQEHDWWDFKHGWRL6L]HPRXQWLQJEUDFNHWV=,62),;FKLOGUHVWUDLQWV\VWHPVWKDWDUHDSSURYHGLQDFFRUGDQFHZLWK(&(5=LƄ6L]HFKLOGUHVWUDLQWV\VWHPVWKDWDUHDSSURYHGLQDFFRUGDQFHZLWK(&(56\PEROIRUILWWLQJDQ,62),;FKLOGUHVWUDLQWV\VWHP6\PEROIRUILWWLQJDQL6L]HFKLOGUHVWUDLQWV\VWHP 2FFXSDQWVDIHW\$

$)LWWLQJ,62),;DQGL6L]HFKLOGVHDWVHFXULQJV\VWHPV&:$51,1*5LVNRILQMXU\RUIDWDOLQMXU\LIWKHFKLOGVHFXUHGZHLJKVPRUHWKDQWKHSHUPLVVLEOHJURVVZHLJKWIRUDQ,62),;RULƄ6L]HFKLOGUHVWUDLQWV\VWHP)RU,62),;RULƄ6L]HFKLOGUHVWUDLQWV\VWHPVLQZKLFKWKHFKLOGLVVHFXUHGXVLQJWKHVHDWEHOWLQWHJUDWHGLQWKHFKLOGUHVWUDLQWV\VWHPWKHSHUPLVVLEOHJURVVZHLJKWRIWKHFKLOGDQGFKLOGUHVWUDLQWV\VWHPLVNJ,IWKHFKLOGDQGWKHFKLOGUHVWUDLQWV\VWHPWRJHWKHUZHLJKPRUHWKDQNJWKH,62),;RULƄ6L]HFKLOGUHVWUDLQWV\VWHPZLWKLQWHJUDƃWHGVHDWEHOWGRHVQRWRIIHUVXIILFLHQWSURWHFƃWLRQ7RRPXFKORDGPD\EHSODFHGRQWKH,62),;RULƄ6L]HFKLOGUHVWUDLQWV\VWHPVDQGWKHFKLOGPD\QRWEHUHVWUDLQHGFRUUHFWO\LQWKHHYHQWRIDQDFFLGHQWIRUH[DPSOH#,IWKHFKLOGDQGWKHFKLOGUHVWUDLQWV\VƃWHPWRJHWKHUZHLJKPRUHWKDQNJRQO\XVHDQ,62),;RULƄ6L]HFKLOGUHVWUDLQWV\VWHPZLWKZKLFKWKHFKLOGLVVHFXUHGZLWKWKHYHKLFOHVHDWEHOW#$OVRVHFXUHWKHFKLOGUHVWUDLQWV\VWHPZLWKWKH7RS7HWKHUEHOWLIDYDLODEOH$OZD\VFRPSO\ZLWKWKHLQIRUPDWLRQDERXWWKHPDVVRIWKHFKLOGUHVWUDLQWV\VWHP=LQWKHPDQXIDFWXUHUVLQVWDOODWLRQDQGRSHUDWƃLQJLQVWUXFWLRQVIRUWKHFKLOGUHVWUDLQWV\VWHPXVHG=RQDODEHORQWKHFKLOGUHVWUDLQWV\VWHPLISUHVHQW5HJXODUO\FKHFNWKDWWKHSHUPLVVLEOHJURVVPDVVRIWKHFKLOGDQGFKLOGUHVWUDLQWV\VWHPLVVWLOOFRPSOLHGZLWK:KHQXVLQJDFKLOGUHVWUDLQWV\VWHPEHVXUHWRREVHUYHWKHPDQXIDFWXUHUVLQVWDOODWLRQDQGRSHUDWLQJLQVWUXFWLRQVDVZHOODVLWVFRUUHFWXVHDQGWKHVXLWDELOLW\RIWKHVHDWVIRUDWWDFKLQJDFKLOGUHVWUDLQWV\VWHP,62),;PRXQWLQJEUDFNHWVL6L]HPRXQWLQJEUDFNHWV%HIRUHHYHU\WULSPDNHVXUHWKDWWKH,62),;FKLOGUHVWUDLQWV\VWHPRUWKHL6L]HFKLOGUHVWUDLQWV\VWHPLVHQJDJHGFRUUHFWO\LQERWK,62),;RULƄ6L]HPRXQWLQJEUDFNHWV2FFXSDQWVDIHW\ $

$*127('DPDJHWRWKHVHDWEHOWIRUWKHFHQWUHVHDW:KHQILWWLQJDFKLOGUHVWUDLQWV\VWHPWKHVHDWEHOWIRUWKHFHQWUHVHDWFRXOGEHGDPDJHG#0DNHVXUHWKDWWKHVHDWEHOWLVQRWWUDSƃSHG#$WWDFKWKH,62),;FKLOGUHVWUDLQWV\VWHPWRERWK,62),;PRXQWLQJEUDFNHWVRULƄ6L]HPRXQWLQJEUDFNHWVRU#$WWDFKWKHLƄ6L]HFKLOGUHVWUDLQWV\VWHPWRERWKLƄ6L]HPRXQWLQJEUDFNHWV6HFXULQJ7RS7HWKHU&:$51,1*5LVNRILQMXU\RUGHDWKLIWKHUHDUVHDWEDFNUHVWVDUHQRWORFNHGDIWHUILWWLQJ7RS7HWKHUEHOWV,IWKHUHDUVHDWEDFNUHVWVDUHQRWORFNHGWKH\FRXOGIROGIRUZDUGVLQWKHHYHQWRIDQDFFLƃGHQWKHDY\EUDNLQJRUVXGGHQFKDQJHVRIGLUHFWLRQ$VDUHVXOWFKLOGUHVWUDLQWV\VWHPVFDQQRWSHUIRUPWKHLULQWHQGHGSURWHFWLYHIXQFWLRQ5HDUVHDWEDFNUHVWVWKDWDUHQRWORFNHGFDQDOVRFDXVHDGGLWLRQDOLQMXULHVHJLQWKHHYHQWRIDQDFFLGHQW#$OZD\VORFNUHDUVHDWEDFNUHVWVDIWHUILWWLQJ7RS7HWKHUEHOWV#2EVHUYHWKHORFNYHULILFDWLRQLQGLFDWRU,IWKHUHDUVHDWEDFNUHVWLVQRWHQJDJHGDQGORFNHGWKHUHGORFNYHULILFDWLRQLQGLFDWRUZLOOEHYLVLEOH7KHULVNRILQMXU\FDQEHUHGXFHGE\7RS7HWKHU7KH7RS7HWKHUEHOWIDFLOLWDWHVDQDGGLWLRQDOFRQƃQHFWLRQEHWZHHQWKHFKLOGUHVWUDLQWV\VWHPDWWDFKHGZLWK,62),;RUL6L]HDQGWKHYHKLFOH7KHFKLOGUHVWUDLQWV\VWHPPXVWEHHTXLSSHGZLWKD7RS7HWKHUEHOW9HKLFOHVZLWKDGMXVWDEOHKHDGUHVWUDLQWV#,IQHFHVVDU\PRYHWKHKHDGUHVWUDLQWXSZDUGVĺSDJH 2FFXSDQWVDIHW\$

$#5RXWH7RS7HWKHUEHOWXQGHUWKHKHDGUHVWUDLQWEHWZHHQWKHWZRKHDGUHVWUDLQWEDUV9HKLFOHVZLWKRXWDGMXVWDEOHKHDGUHVWUDLQWV#7RS7HWKHUEHOWZLWKDVHDWEHOWVWUDSJXLGH7RS7HWKHUEHOWRYHUWKHFHQWUHRIWKHKHDGUHVWUDLQWRU#7RS7HWKHUEHOWZLWKWZRVHDWEHOWVWUDSVJXLGHHDFK7RS7HWKHUEHOWWRWKHULJKWDQGOHIWVLGHRIWKHKHDGUHVWUDLQW$OOYHKLFOHV#)LWWKH,62),;RUL6L]HFKLOGUHVWUDLQWV\VWHPZLWK7RS7HWKHU$OZD\VFRPSO\ZLWKWKHFKLOGUHVWUDLQWV\VWHPPDQXIDFWXUHUVLQVWDOODWLRQLQVWUXFWLRQVZKHQGRLQJVR#+RRN7RS7HWKHUKRRNLQWR7RS7HWKHUDQFKRUDJHZLWKRXWWZLVWLQJLW#7HQVLRQ7RS7HWKHUEHOW$OZD\VFRPSO\ZLWKWKHFKLOGUHVWUDLQWV\VWHPPDQXIDFWXUƃHUVLQVWDOODWLRQLQVWUXFWLRQVZKHQGRLQJVR9HKLFOHVZLWKDGMXVWDEOHKHDGUHVWUDLQWV#,IQHFHVVDU\VOLGHWKHKHDGUHVWUDLQWGRZQƃZDUGVĺSDJH0DNHVXUHWKDW\RXGRQRWLQWHUIHUHZLWKWKHFRUUHFWURXWLQJRI7RS7HWKHUEHOW&KLOGUHVWUDLQWV\VWHPVRQWKHIURQWSDVVHQJHUVHDW1RWHVRQFKLOGUHVWUDLQWV\VWHPVRQWKHIURQWSDVVHQJHUVHDW$FFLGHQWVWDWLVWLFVVKRZWKDWFKLOGUHQVHFXUHGLQWKHUHDUVHDWVDUHVDIHUWKDQFKLOGUHQVHFXUHGLQWKHIURQWVHDWV)RUWKLVUHDVRQ0HUFHGHV%HQ]VWURQJO\DGYLVHVWKDW\RXLQVWDOODFKLOGUHVWUDLQWV\VWHPRQDUHDUVHDW,ILWLVDEVROXWHO\QHFHVVDU\WRLQVWDOODFKLOGUHVWUDLQWV\VWHPRQWKHIURQWSDVVHQJHUVHDWDOZD\VREVHUYHWKHLQIRUPDWLRQRQWKHDXWRPDWLFIURQWSDVVHQJHUIURQWDLUEDJVKXWRIIĺSDJH%\GRLQJWKLV\RXFDQDYRLGULVNVFDXVHGE\=$FKLOGUHVWUDLQWV\VWHPWKDWLVQRWGHWHFWHGE\WKHDXWRPDWLFIURQWSDVVHQJHUIURQWDLUEDJVKXWRII=7KHXQLQWHQWLRQDOO\GLVDEOHGIURQWSDVVHQJHUIURQWDLUEDJ=,QFRUUHFWSRVLWLRQLQJRIWKHFKLOGUHVWUDLQWV\VWHP:DUQLQJQRWLFHRQWKHIURQWSDVVHQJHUVXQYLVRU&:$51,1*5LVNRILQMXU\RUGHDWKIURPXVLQJDUHDUZDUGIDFLQJFKLOGUHVWUDLQWV\VWHPZKHQWKHIURQWSDVVHQJHUDLUEDJLVHQDEOHG,I\RXVHFXUHDFKLOGLQDUHDUZDUGIDFLQJFKLOGUHVWUDLQWV\VWHPRQWKHIURQWSDVVHQJHU2FFXSDQWVDIHW\ $

$VHDWDQGWKH3$66(1*(5$,5%$*2))LQGLƃFDWRUODPSLVRIIWKHIURQWSDVVHQJHUDLUEDJFDQGHSOR\LQWKHHYHQWRIDQDFFLGHQW7KHFKLOGFRXOGEHVWUXFNE\WKHDLUEDJ$OZD\VHQVXUHWKDWWKHIURQWSDVVHQJHUDLUƃEDJLVGLVDEOHG7KH3$66(1*(5$,5%$*2))LQGLFDWRUODPSPXVWEHOLW1(9(5XVHDUHDUZDUGIDFLQJFKLOGUHVWUDLQWRQDVHDWSURWHFWHGE\DQ$&7,9()5217$,5%$*LQIURQWRILW'($7+RU6(5,286,1-85<WRWKH&+,/'FDQRFFXU,IWKH3$66(1*(5$,5%$*2))LQGLFDWRUODPSJRHVRXWWKHIURQWSDVVHQJHUIURQWDLUEDJLVHQDƃEOHG%HVXUHWRREVHUYHWKHQRWHVRQWKHVDIHWUDQVƃSRUWDWLRQRIFKLOGUHQĺSDJH1RWHVRQYHKLFOHVZLWKRXWWKHDXWRPDWLFIURQWSDVVHQJHUIURQWDLUEDJVKXWRII9HKLFOHVZLWKRXWDXWRPDWLFIURQWSDVVHQJHUIURQWDLUEDJVKXWRIIKDYHDVSHFLDOVWLFNHUDIIL[HGWRWKHVLGHRIWKHFRFNSLWRQWKHIURQWSDVVHQJHUVLGH1HYHULQVWDOODUHDUZDUGIDFLQJFKLOGUHVWUDLQWV\VWHPRQWKHIURQWSDVVHQJHUVHDW0DNHVXUH\RXREVHUYHWKHIROORZLQJLQIRUPDƃWLRQ=2QIRUZDUGIDFLQJDQGUHDUZDUGIDFLQJFKLOGUHVWUDLQWV\VWHPVRQWKHIURQWSDVVHQJHUVHDWĺSDJH=2QDWWDFKLQJVXLWDEOHFKLOGUHVWUDLQWV\VWHPVĺSDJH1RWHVRQIRUZDUGIDFLQJDQGUHDUZDUGIDFLQJFKLOGUHVWUDLQWV\VWHPVRQWKHIURQWSDVVHQJHUVHDW:KHQXVLQJDUHDUZDUGIDFLQJFKLOGUHVWUDLQWV\VƃWHPRQWKHIURQWSDVVHQJHUVHDWWKHIURQWSDVVHQJHUIURQWDLUEDJPXVWDOZD\VEHGLVDEOHG7KLVLVRQO\WKHFDVHLIWKH3$66(1*(5$,5%$*2))LQGLFDWRUODPSLVOLWFRQWLQXRXVO\ĺSDJH:KHQXVLQJWKHFKLOGUHVWUDLQWV\VWHPRQWKHIURQWSDVVHQJHUVHDWLWLVHVVHQWLDOWRREVHUYHWKHIROORZLQJ=0RYHWKHIURQWSDVVHQJHUVHDWDVIDUEDFNDVSRVVLEOH=6HWWKHVHDWEDFNUHVWWRDQDOPRVWYHUWLFDOSRVLWLRQ=5HWUDFWWKHVHDWFXVKLRQOHQJWKDVIDUDVSRVƃVLEOH=7KHHQWLUHEDVHRIWKHFKLOGUHVWUDLQWV\VWHPPXVWDOZD\VUHVWRQWKHVLWWLQJVXUIDFHRIWKHIURQWSDVVHQJHUVHDW=7KHEDFNUHVWRIWKHIRUZDUGIDFLQJFKLOGUHVWUDLQWV\VWHPPXVWDVIDUDVSRVVLEOHEHUHVWLQJRQWKHVHDWEDFNUHVWRIWKHIURQW 2FFXSDQWVDIHW\$

$SDVVHQJHUVHDW7KHFKLOGUHVWUDLQWV\VWHPPXVWQRWWRXFKWKHURRIRUEHSXWXQGHUVWUDLQE\WKHKHDGUHVWUDLQWV=,IQHFHVVDU\DGMXVWWKHDQJOHRIWKHVHDWEDFNUHVWDQGWKHKHDGUHVWUDLQWSRVLWLRQDFFRUGLQJO\=$GMXVWWKHVHDWFXVKLRQLQFOLQDWLRQVRWKDWWKHIURQWHGJHRIWKHVHDWFXVKLRQLVLQWKHKLJKHVWSRVLWLRQDQGWKHUHDUHGJHRIWKHVHDWFXVKLRQLVLQWKHORZHVWSRVLWLRQ=$OZD\VPDNHVXUHWKDWWKHVKRXOGHUEHOWVWUDSLVFRUUHFWO\URXWHGIURPWKHVHDWEHOWRXWOHWRIWKHYHKLFOHWRWKHVKRXOGHUEHOWJXLGHRQWKHFKLOGUHVWUDLQWV\VWHP7KHVKRXOGHUEHOWVWUDSPXVWEHURXWHGIRUZDUGVDQGGRZQZDUGVIURPWKHVHDWEHOWRXWOHW=,IQHFHVVDU\DGMXVWWKHVHDWEHOWRXWOHWDQGWKHIURQWSDVVHQJHUVHDWDFFRUGLQJO\=1HYHUSODFHREMHFWVXQGHURUEHKLQGWKHFKLOGUHVWUDLQWV\VWHPHJFXVKLRQV$OZD\VFRPSO\ZLWKWKHPDQXIDFWXUHUVLQVWDOODƃWLRQDQGRSHUDWLQJLQVWUXFWLRQVIRUWKHFKLOGUHVWUDLQWV\VWHPXVHGDQGWKHQRWHVRQILWWLQJVXLWDEOHFKLOGUHVWUDLQWV\VWHPVĺSDJH6XLWDELOLW\RIWKHVHDWVIRUFKLOGUHVWUDLQWV\VƃWHPV1RWHVRQDWWDFKLQJVXLWDEOHFKLOGUHVWUDLQWV\VWHPV2QO\FKLOGUHVWUDLQWV\VWHPVZLWKWKHIROORZLQJ(&(VWDQGDUGVDUHSHUPLWWHGIRUXVHLQWKHYHKLƃFOH=(&(5=(&(5L6L]HFKLOGUHVWUDLQWV\VWHPV([DPSOHVRIDSSURYDOODEHOVRQFKLOGUHVWUDLQWV\VWHPV/DEHOIRUFKLOGUHVWUDLQWV\VWHPVLQDFFRUGƃDQFHZLWK(&(52FFXSDQWVDIHW\ $

$/DEHOIRUFKLOGUHVWUDLQWV\VWHPVLQDFFRUGƃDQFHZLWK(&(5,62),;RUL6L]HFKLOGUHVWUDLQWV\VWHPVRIWKHIROƃORZLQJ8QLYHUVDOFDWHJRU\FDQEHXVHGLQDFFRUGDQFHZLWKWKHWDEOHVRQVXLWDELOLW\RIVHDWVIRUWKHDWWDFKPHQWRIFKLOGUHVWUDLQWV\VWHPVRQVHDWVPDUNHG88),8)RUL86HPLXQLYHUVDOFKLOGUHVWUDLQWV\VWHPVDUHLQGLƃFDWHGE\WKHWH[WVHPLXQLYHUVDORQWKHDSSURYDOODEHO7KH\FDQRQO\EHXVHGLIWKHYHKLƃFOHDQGWKHVHDWDUHOLVWHGLQWKHFKLOGUHVWUDLQWV\VWHPPDQXIDFWXUHUVYHKLFOHPRGHOOLVW1RWHVRQWKHVXLWDELOLW\RIVHDWVIRUDWWDFKƃLQJEHOWVHFXUHGFKLOGUHVWUDLQWV\VWHPV2EVHUYHWKHIROORZLQJLQIRUPDWLRQ=:KHQXVLQJDEDE\FDUVHDWRIWKHFDWHƃJRU\DQGDUHDUZDUGIDFLQJFKLOGUHVWUDLQWV\VWHPRQDUHDUVHDWDGMXVWWKHGULYHUVDQGIURQWSDVVHQJHUVHDWVXFKWKDWWKHVHDWGRHVQRWWRXFKWKHFKLOGUHVWUDLQWV\VWHP=:KHQXVLQJDIRUZDUGIDFLQJFKLOGUHVWUDLQWV\VWHPRIFDWHJRU\,UHPRYHWKHKHDGUHVWUDLQWIURPWKHUHVSHFWLYHVHDWLISRVVLEOHĺSDJH,QDGGLWLRQWKHVHDWEDFNUHVWRIWKHFKLOGUHVWUDLQWV\VWHPPXVWDVIDUDVSRVVLEOHOLHIODWDJDLQVWWKHEDFNƃUHVWRIWKHYHKLFOHVHDW=:KHQ\RXUHPRYHWKHFKLOGUHVWUDLQWV\VWHPILWWKHKHDGUHVWUDLQWLPPHGLDWHO\ĺSDJHDQGDGMXVWDOOWKHKHDGUHVWUDLQWVDJDLQFRUƃUHFWO\=)RUFHUWDLQFKLOGUHVWUDLQWV\VWHPVLQZHLJKWFDWHJRULHV,,RU,,,WKHUHPD\EHFHUWDLQUHVWULFWLRQVLQWKHPD[LPXPVL]HVHWWLQJHJGXHWRSRVVLEOHFRQWDFWZLWKWKHURRI=0DNHVXUHWKDWWKHFKLOGVIHHWGRQRWWRXFKWKHIURQWVHDW,IQHFHVVDU\PRYHWKHIURQWVHDWIRUZDUGVOLJKWO\=7KHFKLOGUHVWUDLQWV\VWHPPXVWQRWWRXFKWKHURRIRUEHSXWXQGHUVWUDLQE\WKHKHDGUHVWUDLQWV$GMXVWWKHKHDGUHVWUDLQWVDFFRUGƃLQJO\=2EVHUYHWKHPDQXIDFWXUHUVLQVWDOODWLRQLQVWUXFWLRQVIRUWKHFKLOGUHVWUDLQWV\VWHP/HJHQGIRUWKHWDEOH;1RWVXLWDEOHIRUFKLOGUHQLQWKLVZHLJKWFDWHJRU\86XLWDEOHIRUFKLOGUHVWUDLQWV\VWHPVRIWKH8QLYHUVDOFDWHJRU\LQWKLVZHLJKWFDWHJRU\ 2FFXSDQWVDIHW\$

$8) 6XLWDEOHIRUIRUZDUGIDFLQJFKLOGUHVWUDLQWV\VWHPVRIWKH8QLYHUVDOFDWƃHJRU\LQWKLVZHLJKWFDWHJRU\/6XLWDEOHIRUVHPLXQLYHUVDOFKLOGUHVWUDLQWV\VWHPVDFFRUGLQJWRWKHWDEOHLQ5HFRPPHQGHGFKLOGUHVWUDLQWV\VƃWHPVRULIWKHYHKLFOHDQGWKHVHDWDUHOLVWHGLQWKHFKLOGUHVWUDLQWV\VWHPPDQƃXIDFWXUHUVYHKLFOHPRGHOOLVW)URQWSDVVHQJHUVHDW:HLJKWFDWHJRULHV )URQWSDVVHQJHUIURQWDLUEDJHQDEOHG)URQWSDVVHQJHUIURQWDLUEDJGLVDƃEOHG&DWHJRU\XSWRNJ ; 8/&DWHJRU\XSWRNJ ; 8/&DWHJRU\,WRNJ 8)/ 8/&DWHJRU\,,WRNJ 8)/ 8/&DWHJRU\,,,WRNJ 8)/ 8/7KHYHKLFOHLVHTXLSSHGZLWKDXWRPDWLFIURQWSDVVHQJHUIURQWDLUEDJVKXWRII7KH3$66(1*(5$,5%$*2))LQGLFDWRUODPSPXVWEHOLW2FFXSDQWVDIHW\ $

$5HDUVHDWV:HLJKWFDWHJRULHV /HIWULJKW &HQWUH&DWHJRU\XSWRNJ 8/ 8/&DWHJRU\XSWRNJ 8/ 8/&DWHJRU\,WRNJ 8/ 8/&DWHJRU\,,WRNJ 8/ ;&DWHJRU\,,,WRNJ 8/ ;&KLOGUHVWUDLQWV\VWHPVZLWKDVXSSRUWLQJEUDFNHWDUHQRWVXLWDEOHIRUWKLVVHDW1RWHVRQWKHVXLWDELOLW\RIVHDWVIRUDWWDFKƃLQJ,62),;FKLOGUHVWUDLQWV\VWHPV2EVHUYHWKHIROORZLQJLQIRUPDWLRQ=:KHQXVLQJDEDE\FDUVHDWRIFDWHƃJRU\DQGDUHDUZDUGIDFLQJFKLOGUHVWUDLQWV\VWHPRIFDWHJRU\,RQDUHDUVHDWDGMXVWWKHGULYHUVDQGIURQWSDVVHQJHUVHDWVXFKWKDWWKHVHDWGRHVQRWWRXFKWKHFKLOGUHVWUDLQWV\VWHP=:KHQXVLQJDIRUZDUGIDFLQJFKLOGUHVWUDLQWV\VWHPRIFDWHJRU\,UHPRYHWKHKHDGUHVWUDLQWIURPWKHUHVSHFWLYHVHDWLISRVVLEOHĺSDJH,QDGGLWLRQWKHVHDWEDFNUHVWRIWKHFKLOGUHVWUDLQWV\VWHPPXVWDVIDUDVSRVVLEOHOLHIODWDJDLQVWWKHEDFNƃUHVWRIWKHYHKLFOHVHDW=:KHQ\RXUHPRYHWKHFKLOGUHVWUDLQWV\VWHPILWWKHKHDGUHVWUDLQWLPPHGLDWHO\ĺSDJHDQGDGMXVWDOOWKHKHDGUHVWUDLQWVDJDLQFRUƃUHFWO\=)RUFHUWDLQFKLOGUHVWUDLQWV\VWHPVLQZHLJKWFDWHJRULHV,,RU,,,WKHUHPD\EHFHUWDLQUHVWULFWLRQVLQWKHPD[LPXPVL]HVHWWLQJHJGXHWRSRVVLEOHFRQWDFWZLWKWKHURRI=0DNHVXUHWKDWWKHFKLOGVIHHWGRQRWWRXFKWKHIURQWVHDW,IQHFHVVDU\PRYHWKHIURQWVHDWIRUZDUGVOLJKWO\ 2FFXSDQWVDIHW\$

$=7KHFKLOGUHVWUDLQWV\VWHPPXVWQRWWRXFKWKHURRIRUEHSXWXQGHUVWUDLQE\WKHKHDGUHVWUDLQWV$GMXVWWKHKHDGUHVWUDLQWVDFFRUGƃLQJO\=2EVHUYHWKHPDQXIDFWXUHUVLQVWDOODWLRQLQVWUXFWLRQVIRUWKHFKLOGUHVWUDLQWV\VWHP/HJHQGIRUWKHWDEOH;1RWVXLWDEOHIRUDQ,62),;FKLOGUHVWUDLQWV\VWHPLQWKLVZHLJKWFDWHJRU\DQGRUVL]HFDWHJRU\,8) 6XLWDEOHIRUIRUZDUGIDFLQJ,62),;FKLOGUHVWUDLQWV\VWHPVRIWKH8QLYHUVDOFDWƃHJRU\LQWKLVZHLJKWFDWHJRU\,/ 6XLWDEOHIRU,62),;FKLOGUHVWUDLQWV\VƃWHPVDFFRUGLQJWRWKHWDEOHLQ2YHUƃYLHZRIWKHUHFRPPHQGHGFKLOGUHVWUDLQWV\VWHPVRULIWKHYHKLFOHDQGWKHVHDWDUHOLVWHGLQWKHFKLOGUHVWUDLQWV\VWHPPDQXIDFWXUHUVYHKLFOHPRGHOOLVW:HLJKWFDWHJRULHV 6L]HFDWHJRU\ (TXLSPHQW 5HDUVHDW/HIWULJKW&DUU\FRW )*,62/,62/;;&DWHJRU\XSWRNJDQGDSSUR[PRQWKV ( ,625 ,/&DWHJRU\XSWRNJDQGDSSUR[PRQWKV ('&,625,625,625,/,/,/2FFXSDQWVDIHW\ $

$:HLJKWFDWHJRULHV 6L]HFDWHJRU\ (TXLSPHQW 5HDUVHDW/HIWULJKW&DWHJRU\,WRNJDQGEHWZHHQDSSUR[PRQWKVDQG\HDUV '&%%$,625,625,62),62);,62),/,/,8),8),8):KHQXVLQJDFKLOGUHVWUDLQWV\VWHPRIVL]HFDWHJRU\&,625PRYHWKHIURQWVHDWWRWKHKLJKHVWSRVLWLRQ0DNHVXUHWKDWWKHVHDWEDFNUHVWRIWKHIURQWVHDWGRHVQRWUHVWDJDLQVWWKHFKLOGUHVWUDLQWV\VWHP1RWHVRQWKHVXLWDELOLW\RIVHDWVIRUDWWDFKƃLQJLƄ6L]HFKLOGUHVWUDLQWV\VWHPV2EVHUYHWKHIROORZLQJLQIRUPDWLRQ=:KHQXVLQJDUHDUZDUGIDFLQJFKLOGUHVWUDLQWV\VWHPDGMXVWWKHIURQWVHDWVRWKDWLWGRHVQRWWRXFKWKHFKLOGUHVWUDLQWV\VƃWHP=:KHQXVLQJDIRUZDUGIDFLQJFKLOGUHVWUDLQWV\VWHPUHPRYHWKHKHDGUHVWUDLQWIURPWKHUHVSHFWLYHVHDWLISRVVLEOHĺSDJH,QDGGLWLRQWKHVHDWEDFNUHVWRIWKHFKLOGUHVWUDLQWV\VWHPPXVWDVIDUDVSRVVLEOHOLHIODWDJDLQVWWKHEDFNUHVWRIWKHYHKLFOHVHDW=:KHQ\RXUHPRYHWKHFKLOGUHVWUDLQWV\VWHPILWWKHKHDGUHVWUDLQWLPPHGLDWHO\ĺSDJHDQGDGMXVWDOOWKHKHDGUHVWUDLQWVDJDLQFRUƃUHFWO\=0DNHVXUHWKDWWKHFKLOGVIHHWGRQRWWRXFKWKHIURQWVHDW,IQHFHVVDU\PRYHWKHIURQWVHDWIRUZDUGVOLJKWO\=2EVHUYHWKHPDQXIDFWXUHUVLQVWDOODWLRQLQVWUXFWLRQVIRUWKHFKLOGUHVWUDLQWV\VWHP/HJHQGIRUWKHWDEOH;1RWVXLWDEOHIRUDQL6L]HFKLOGUHVWUDLQWV\VWHPLQWKH8QLYHUVDOFDWHJRU\LƄ8 6XLWDEOHIRUIRUZDUGIDFLQJDQGUHDUƃZDUGIDFLQJL6L]HFKLOGUHVWUDLQWV\VƃWHPVLQWKH8QLYHUVDOFDWHJRU\ 2FFXSDQWVDIHW\$

$)URQWSDVVHQJHUVHDW /HIWUHDUVHDW &HQWUHUHDUVHDW 5LJKWUHDUVHDWLƄ6L]HFKLOGUHVWUDLQWV\VWHP ; LƄ8 ; LƄ82YHUYLHZRIUHFRPPHQGHGFKLOGUHVWUDLQWV\VWHPV5HFRPPHQGHGFKLOGUHVWUDLQWV\VWHPVIRUDWWDFKLQJZLWKWKHYHKLFOHVHDWEHOW:HLJKWFDWHJRULHV 0DQXIDFWXUHU 7\SH $SSURYDOQXPEHU(2UGHUQXPEHU$FRORXUFRGH+&DWHJRU\XSWRNJXSWRDSSUR[LPDWHO\PRQWKV%ULWD[5|PHU %$%<6$)(SOXV,,  &DWHJRU\XSWRNJXSWRDSSUR[LPDWHO\PRQWKV%ULWD[5|PHU %$%<6$)(SOXV,,  &DWHJRU\,WRNJEHWZHHQDSSUR[LPDWHO\PRQWKVDQG\HDUV%ULWD[5|PHU '82SOXV  2FFXSDQWVDIHW\ $

$:HLJKWFDWHJRULHV 0DQXIDFWXUHU 7\SH $SSURYDOQXPEHU(2UGHUQXPEHU$FRORXUFRGH+&DWHJRU\,,,,,WRNJEHWZHHQDSSUR[LPDWHO\DQG\HDUV%ULWD[5|PHU .,'),;  %ULWD[5|PHU .,'),;;3  5HFRPPHQGHG8QLYHUVDODQG6HPL8QLYHUVDOFDWHJRU\,62),;FKLOGUHVWUDLQWV\VWHPV:HLJKWFDWHJRULHV 6L]HFDWHJRU\ 0DQXIDFWXUHU 7\SH $SSURYDOQXPEHU(2UGHUQXPEHUFROƃRXUFRGH+&DWHJRU\XSWRNJXSWRDSSUR[LPDWHO\PRQWKV( %ULWD[5|PHU %$%<6$)(SOXV  %&DWHJRU\,WRNJ% %ULWD[5|PHU '82SOXV  $$ 2FFXSDQWVDIHW\$

$%<RXFDQREWDLQIXUWKHULQIRUPDWLRQRQWKHFRUUHFWFKLOGUHVWUDLQWV\VWHPDWDQ\0HUFHGHV%HQ]6HUYLFH&HQWUH&KLOGVDIHW\ORFNV$FWLYDWLQJGHDFWLYDWLQJWKHFKLOGVDIHW\ORFNIRUWKHUHDUGRRUV&:$51,1*5LVNRIDFFLGHQWDQGLQMXU\GXHWRFKLOGUHQOHIWXQDWWHQGHGLQWKHYHKLFOH,I\RXOHDYHFKLOGUHQXQDWWHQGHGLQWKHYHKLƃFOHWKH\PD\EHDEOHWRVHWWKHYHKLFOHLQPRWLRQIRUH[DPSOHE\=5HOHDVLQJWKHSDUNLQJEUDNH=6KLIWLQJWKHDXWRPDWLFWUDQVPLVVLRQRXWRISDUNSRVLWLRQ]RUVKLIWLQJPDQXDOWUDQVPLVVLRQLQWRLGOHSRVLWLRQ=6WDUWLQJWKHHQJLQH,QDGGLWLRQWKH\PD\RSHUDWHYHKLFOHHTXLSƃPHQWDQGEHFRPHWUDSSHG#1HYHUOHDYHFKLOGUHQDQGDQLPDOVXQDWƃWHQGHGLQWKHYHKLFOH#:KHQOHDYLQJWKHYHKLFOHDOZD\VWDNHWKHNH\ZLWK\RXDQGORFNWKHYHKLFOH7KLVDOVRDSSOLHVWRWKH'LJLWDO9HKLFOH.H\VWLFNHUDQGPRELOHSKRQHVLIWKH'LJLWDO9HKLFOH.H\LQWKHVPDUWSKRQHIXQFWLRQLVDFWLYDWHGYLDWKH0HUFHGHVPHFRQQHFWZHEDSS&:$51,1*7KLVSRVHVDQLQFUHDVHGULVNRIGHDWKGXHWRKHDWVWURNHRUH[SRVXUHWRFROGLQWKHYHKLFOH,ISHUVRQV²SDUWLFXODUO\FKLOGUHQ²H[SHULƃHQFHSURORQJHGH[SRVXUHWRH[WUHPHO\KLJKRUORZWHPSHUDWXUHVWKLVSRVHVDULVNRILQMXU\RUHYHQIDWDOLQMXU\#1HYHUOHDYHDQ\RQH²SDUWLFXODUO\FKLOƃGUHQ²XQDWWHQGHGLQWKHYHKLFOH&:$51,1*5LVNRIDFFLGHQWDQGLQMXU\GXHWRFKLOGUHQOHIWXQDWWHQGHGLQWKHYHKLFOH,IFKLOGUHQDUHWUDYHOOLQJLQWKHYHKLFOHWKH\FRXOG=RSHQGRRUVWKHUHE\HQGDQJHULQJRWKHUSHUVRQVRUURDGXVHUV=JHWRXWRIWKHYHKLFOHDQGEHKLWE\RQFRPLQJWUDIILF=RSHUDWHYHKLFOHHTXLSPHQWDQGEHFRPHWUDSSHGIRUH[DPSOH#$OZD\VDFWLYDWHWKHFKLOGVDIHW\ORFNVLQVWDOOHGLIFKLOGUHQDUHWUDYHOOLQJLQWKHYHKLFOH#1HYHUOHDYHFKLOGUHQXQDWWHQGHGLQWKHYHKLFOH#:KHQOHDYLQJWKHYHKLFOHDOZD\VWDNHWKHNH\ZLWK\RXDQGORFNWKHYHKLFOH7KLVDOVRDSSOLHVWRWKH'LJLWDO9HKLFOH.H\VWLFNHUDQGPRELOHSKRQHVLIWKH'LJLWDO9HKLFOH.H\LQWKHVPDUWSKRQH2FFXSDQWVDIHW\ $

$IXQFWLRQLVDFWLYDWHGYLDWKH0HUFHGHVPHFRQQHFWZHEDSS&KLOGVDIHW\ORFNVIRUWKHUHDUGRRUVDQGDQRYHUƃULGHIHDWXUHIRUWKHUHDUVLGHZLQGRZVDUHDYDLODƃEOH7KHFKLOGVDIHW\ORFNRQWKHUHDUGRRUVVHFXUHVHDFKGRRUVHSDUDWHO\7KHGRRUVFDQQRORQJHUEHRSHQHGIURPWKHLQVLGH#3UHVVWKHOHYHULQGLUHFWLRQDFWLYDWHRUGHDFWLYDWH#0DNHVXUHWKDWWKHFKLOGVDIHW\ORFNVDUHZRUNLQJSURSHUO\$FWLYDWLQJGHDFWLYDWLQJWKHRYHUULGHIHDWXUHIRUWKHUHDUVLGHZLQGRZV#7RDFWLYDWHGHDFWLYDWHSUHVVEXWWRQ2SHQLQJFORVLQJWKHVLGHZLQGRZLQWKHUHDULVSRVVLEOH=:LWKLQGLFDWRUODPSOLWYLDWKHVZLWFKRQWKHGULYHUVGRRU=:LWKLQGLFDWRUODPSRIIYLDWKHVZLWFKRQWKHFRUUHVSRQGLQJUHDUGRRURUGULYƃHUVGRRU1RWHVRQSHWVLQWKHYHKLFOH&:$51,1*5LVNRIDFFLGHQWDQGLQMXU\GXHWRDQLPDOVOHIWXQVHFXUHGRUXQDWƃWHQGHGLQWKHYHKLFOH,I\RXOHDYHDQLPDOVLQWKHYHKLFOHXQDWWHQƃGHGRUXQVHFXUHGWKH\FRXOGSRVVLEO\SUHVVGRZQEXWWRQVRUVZLWFKHV7KHUHE\DQDQLPDOPD\=DFWLYDWHYHKLFOHHTXLSPHQWDQGEHFRPHWUDSSHGIRUH[DPSOH=VZLWFKV\VWHPVRQRURIIDQGHQGDQJHURWKHUURDGXVHUV 2FFXSDQWVDIHW\$

$8QVHFXUHGDQLPDOVPD\EHWKURZQDURXQGLQWKHYHKLFOHLQWKHHYHQWRIDQDFFLGHQWRUVXGGHQVWHHULQJDQGEUDNLQJPDQRHXYUHVDQGLQMXUHYHKLFOHRFFXSDQWVLQWKHSURFHVV#1HYHUOHDYHDQLPDOVLQWKHYHKLFOHXQDWƃWHQGHG#$OZD\VFRUUHFWO\VHFXUHDQLPDOVZKLOHGULYLQJHJXVLQJDVXLWDEOHDQLPDOFDUƃULHU2FFXSDQWVDIHW\ $

$.H\2YHUYLHZRINH\IXQFWLRQV&:$51,1*5LVNRIDFFLGHQWDQGLQMXU\GXHWRFKLOGUHQOHIWXQDWWHQGHGLQWKHYHKLFOH,IFKLOGUHQDUHOHIWXQDWWHQGHGLQWKHYHKLFOHWKH\FRXOG=RSHQGRRUVWKHUHE\HQGDQJHULQJRWKHUSHUVRQVRUURDGXVHUV=JHWRXWRIWKHYHKLFOHDQGEHKLWE\RQFRPLQJWUDIILF=RSHUDWHYHKLFOHHTXLSPHQWDQGEHFRPHWUDSSHGIRUH[DPSOH,QDGGLWLRQFKLOGUHQFRXOGDOVRVHWWKHYHKLƃFOHLQPRWLRQIRUH[DPSOHE\=UHOHDVLQJWKHSDUNLQJEUDNH=VKLIWLQJWKHDXWRPDWLFWUDQVPLVVLRQRXWRISDUNSRVLWLRQ]RUVKLIWLQJPDQXDOWUDQVƃPLVVLRQLQWRQHXWUDO=VWDUWLQJWKHHQJLQH#:KHQOHDYLQJWKHYHKLFOHDOZD\VWDNHWKHNH\ZLWK\RXDQGORFNWKHYHKLFOH#1HYHUOHDYHFKLOGUHQDQGDQLPDOVXQDWƃWHQGHGLQWKHYHKLFOH#.HHSWKHYHKLFOHNH\RXWRIUHDFKRIFKLOGUHQ*127('DPDJHWRWKHNH\FDXVHGE\PDJQHWLFILHOGV#.HHSWKHNH\DZD\IURPVWURQJPDJƃQHWLFILHOGV/RFNV%DWWHU\FKHFNODPS8QORFNV%7KHNH\PD\YDU\IURPWKHRQHVKRZQLQWKHGLDJUDPGHSHQGLQJRQWKHYHKLFOHHTXLSƃPHQW7KHNH\ORFNVDQGXQORFNVWKHIROORZLQJFRPSRƃQHQWV=7KHGRRUV=7KHIXHOILOOHUIODS=7KHWDLOJDWH 2SHQLQJDQGFORVLQJ$

$7KHLQGLFDWRUODPSLQWKHGRRUWULPRQWKHGULYƃHUVVLGHIODVKHVZKHQWKHYHKLFOHLVORFNHGIURPRXWVLGH7KHLQGLFDWRUODPSJRHVRXWLIWKHYHKLƃFOHLVORFNHGIURPLQVLGHRUZKLOHWKHYHKLFOHLVLQPRWLRQ,I\RXGRQRWRSHQWKHYHKLFOHZLWKLQDSSUR[ƃLPDWHO\VHFRQGVDIWHUXQORFNLQJ=7KHYHKLFOHLVORFNHGDJDLQ=$QWLWKHIWSURWHFWLRQLVUHDFWLYDWHG'RQRWNHHSWKHNH\WRJHWKHUZLWKHOHFWURQLFGHYLFHVRUPHWDOREMHFWV7KLVFDQDIIHFWWKHNH\VIXQFWLRQDOLW\%,IEDWWHU\FKHFNODPSGRHVQRWOLJKWXSDIWHUSUHVVLQJWKH6RU7EXWWRQWKHEDWWHU\LVGLVFKDUJHG5HSODFLQJWKHNH\EDWWHU\ĺSDJH$FWLYDWLQJGHDFWLYDWLQJWKHDFRXVWLFORFNLQJYHULILFDWLRQVLJQDO0XOWLPHGLDV\VWHP,.6HWWLQJV.9HKLFOH#$FWLYDWHRUGHDFWLYDWH$FRXVWLFORFN$FWLYDWLQJGHDFWLYDWLQJWKHSDQLFDODUP5HTXLUHPHQWV%7KHSDQLFDODUPIXQFWLRQLVRQO\DYDLODEOHLQFHUWDLQFRXQWULHV=7KHLJQLWLRQLVVZLWFKHGRII#7RDFWLYDWHSUHVVEXWWRQIRUDSSUR[ƃLPDWHO\RQHVHFRQG$YLVXDODQGDXGLEOHDODUPLVWULJJHUHG#7RGHDFWLYDWHEULHIO\SUHVVEXWWRQDJDLQRU#3UHVVWKHVWDUWVWRSEXWWRQRQWKHFRFNSLWWKHNH\LVLQVLGHWKHYHKLFOH&KDQJLQJWKHXQORFNLQJVHWWLQJV3RVVLEOHXQORFNLQJIXQFWLRQVRIWKHNH\=&HQWUDOXQORFNLQJ=8QORFNLQJWKHGULYHUVGRRUDQGIXHOILOOHUIODS#7RVZLWFKEHWZHHQVHWWLQJVSUHVVWKH6DQG7EXWWRQVVLPXOWDQHRXVO\IRUDSSUR[LPDWHO\VL[VHFRQGVXQWLOWKHEDWWHU\FKHFNODPSIODVKHVWZLFH,IWKHXQORFNLQJIXQFWLRQIRUWKHGULYHUVGRRUDQGIXHOILOOHUIODSKDVEHHQVHOHFWHG=3UHVVLQJWKH6EXWWRQDVHFRQGWLPHFHQƃWUDOO\XQORFNVWKHYHKLFOH=9HKLFOHVZLWK.(</(66*2LI\RXWRXFKWKHLQQHUVXUIDFHRIWKHGRRUKDQGOHRQWKHGULYHUVGRRURQO\WKHGULYHUVGRRUDQGIXHOILOOHUIODSDUHXQORFNHG5HGXFLQJWKHHQHUJ\FRQVXPSWLRQRIWKHNH\$OOYHKLFOHVLI\RXGRQRWXVHWKHYHKLFOHRUDNH\IRUDQH[WHQGHGSHULRGRIWLPH\RXFDQUHGXFHWKHHQHUJ\FRQVXPSWLRQRIWKHUHVSHFƃWLYHNH\7RGRVRGHDFWLYDWHWKHNH\IXQFWLRQV2SHQLQJDQGFORVLQJ $

$#7RGHDFWLYDWHSUHVVWKH7EXWWRQRQWKHNH\WZLFHLQTXLFNVXFFHVVLRQ7KHEDWWHU\FKHFNODPSRIWKHNH\IODVKHVWZLFHEULHIO\DQGOLJKWVXSRQFH#7RDFWLYDWHSUHVVDQ\EXWWRQRQWKHNH\%:KHQWKHYHKLFOHLVVWDUWHGZLWKWKHNH\LQWKHVWRZDJHFRPSDUWPHQWRIWKHFHQWUHFRQƃVROHWKHNH\IXQFWLRQVDUHDXWRPDWLFDOO\DFWLYDWHGĺSDJH5HPRYLQJLQVHUWLQJWKHHPHUJHQF\NH\#7RUHPRYHSUHVVUHOHDVHNQRE(PHUJHQF\NH\LVSXVKHGRXWVOLJKWO\#3XOORXWHPHUJHQF\NH\XQWLOLWHQJDJHVLQWKHLQWHUPHGLDWHSRVLWLRQ%<RXFDQXVHWKHLQWHUPHGLDWHSRVLWLRQRIHPHUJHQF\NH\WRDWWDFKWKHNH\WRDNH\ULQJ#3UHVVUHOHDVHNQREDJDLQDQGIXOO\UHPRYHHPHUJHQF\NH\#7RLQVHUWSUHVVUHOHDVHNQRE#,QVHUWHPHUJHQF\NH\WRWKHLQWHUPHGLDWHSRVLWLRQRUIXOO\XQWLOLWHQJDJHV%'HSHQGLQJRQWKHYHKLFOHVHTXLSPHQWWKHLQWHUPHGLDWHSRVLWLRQLVQRWDYDLODEOH5HSODFLQJWKHNH\EDWWHU\&'$1*(56HULRXVGDPDJHWRKHDOWKFDXVHGE\VZDOORZLQJEDWWHULHV%DWWHULHVFRQWDLQWR[LFDQGFRUURVLYHVXEƃVWDQFHV6ZDOORZLQJEDWWHULHVPD\FDXVHVHULRXVGDPDJHWRKHDOWK7KHUHLVDULVNRIIDWDOLQMXU\#.HHSEDWWHULHVRXWRIWKHUHDFKRIFKLOƃGUHQ#,IEDWWHULHVDUHVZDOORZHGVHHNPHGLFDODWWHQWLRQLPPHGLDWHO\+(19,5210(17$/127((QYLURQPHQWDOGDPDJHGXHWRLPSURSHUGLVSRVDORIEDWƃWHULHV%DWWHULHVFRQWDLQSROOXWDQWV,WLVLOOHJDOWRGLVSRVHRIWKHPZLWKWKHKRXVHKROGUXEELVK#'LVSRVHRIEDWWHULHVLQDQHQYLURQPHQWDOO\UHVSRQVLEOHPDQQHU7DNHGLVFKDUJHGEDWWHULHVWRDTXDOLILHGVSHFLDOLVWZRUNVKRSRUWRDFROOHFWLRQSRLQWIRUXVHGEDWWHULHV 2SHQLQJDQGFORVLQJ$

$5HTXLUHPHQWV=<RXUHTXLUHD&59FHOOEDWWHU\0HUFHGHV%HQ]UHFRPPHQGVWKDW\RXKDYHWKHEDWWHU\UHSODFHGDWDTXDOLILHGVSHFLDOLVWZRUNƃVKRS#5HPRYHWKHHPHUJHQF\NH\ĺSDJH#3UHVVUHOHDVHEXWWRQGRZQIXOO\DQGVOLGHFRYHULQWKHGLUHFWLRQRIWKHDUURZ#)ROGRXWFRYHULQWKHGLUHFWLRQRIWKHDUURZDQGUHPRYH#5HPRYHEDWWHU\FRPSDUWPHQWDQGWDNHRXWWKHGLVFKDUJHGEDWWHU\#,QVHUWWKHQHZEDWWHU\LQWREDWWHU\FRPSDUWƃPHQW2EVHUYHWKHSRVLWLYHSROHPDUNLQJLQWKHEDWWHU\FRPSDUWPHQWDQGRQWKHEDWƃWHU\#3XVKLQEDWWHU\FRPSDUWPHQW#5HDWWDFKFRYHUDQGSXVKLWXQWLOLWHQJDJHV3UREOHPVZLWKWKHNH\3UREOHP 3RVVLEOHFDXVHVFRQVHTXHQFHVDQGP6ROXWLRQV<RXFDQQRORQJHUORFNRUXQORFNWKHYHKLFOH3RVVLEOHFDXVHV=7KHNH\EDWWHU\LVGLVFKDUJHGRUQHDUO\GLVFKDUJHG=7KHUHLVLQWHUIHUHQFHIURPDSRZHUIXOUDGLRVLJQDOVRXUFH2SHQLQJDQGFORVLQJ $

$3UREOHP 3RVVLEOHFDXVHVFRQVHTXHQFHVDQGP6ROXWLRQV=7KHNH\LVIDXOW\#&KHFNWKHEDWWHU\XVLQJWKHEDWWHU\FKHFNODPSDQGUHSODFHLIQHFHVVDU\#8VHWKHHPHUJHQF\NH\WRORFNRUXQORFN#+DYHWKHNH\FKHFNHGDWDTXDOLILHGVSHFLDOLVWZRUNVKRS<RXKDYHORVWDNH\ #+DYHWKHNH\GHDFWLYDWHGDWDTXDOLILHGVSHFLDOLVWZRUNVKRS#,IQHFHVVDU\KDYHWKHORFNVFKDQJHGDVZHOO'RRUV1RWHVRQWKHDGGLWLRQDOGRRUORFN7KHDGGLWLRQDOGRRUORFNLVRQO\DYDLODEOHIRUYHKLFOHVIRUWKH8QLWHG.LQJGRP&:$51,1*5LVNRILQMXU\WRSHUVRQVLQVLGHWKHYHKLFOHZKHQWKHDGGLWLRQDOGRRUORFNLVDFWLYDWHG,IWKHDGGLWLRQDOGRRUORFNLVDFWLYDWHGWKHGRRUVFDQQRORQJHUEHRSHQHGIURPWKHLQVLGH,IWKHUHDUHSHUVRQVLQWKHYHKLFOHWKH\FDQQRORQJHUOHDYHWKHYHKLFOHHJLQKD]DUGRXVVLWXDWLRQV#1HYHUOHDYHSHUVRQVXQDWWHQGHGLQWKHYHKLFOHSDUWLFXODUO\FKLOGUHQHOGHUO\SHUVRQVRUSHUVRQVLQQHHGRIKHOS#,IWKHUHDUHSHUVRQVLQWKHYHKLFOHGRQRWDFWLYDWHWKHDGGLWLRQDOGRRUORFN7KHDGGLWLRQDOGRRUORFNLVDXWRPDWLFDOO\DFWLYDƃWHG=$IWHUORFNLQJWKHYHKLFOHZLWKWKHNH\=$IWHUORFNLQJWKHYHKLFOHXVLQJ.(</(66*2%$IWHUORFNLQJWKHYHKLFOHWKHKRUQFDQEHRSHUDWHGIRUDVKRUWWLPH%$IWHUORFNLQJWKHYHKLFOHSUHVVLQJWKHEXWWRQWRFHQWUDOO\XQORFNWKHYHKLFOHIURPLQVLGHZLOOWULJJHUDQDODUPĺSDJH,IWKHDGGLWLRQDOGRRUORFNLVDFWLYDWHGWKHGRRUVFDQQRWEHRSHQHGIURPWKHLQVLGH<RXFDQGHDFWLYDWHWKHDGGLWLRQDOGRRUORFNE\GHDFWLYDWLQJWKHLQWHULRUSURWHFWLRQĺSDJH 2SHQLQJDQGFORVLQJ$

$8QORFNLQJRSHQLQJWKHGRRUVIURPWKHLQVLGH#8QLWHG.LQJGRPRQO\REVHUYHWKHQRWHVRQWKHDGGLWLRQDOGRRUORFNĺSDJH#3XOOGRRUKDQGOH&HQWUDOO\ORFNLQJDQGXQORFNLQJWKHYHKLFOHIURPWKHLQVLGH#7RXQORFNSUHVVEXWWRQ#7RORFNSUHVVEXWWRQ7KHLQGLFDWRUODPSOLJKWVXS7KLVGRHVQRWORFNRUXQORFNWKHIXHOILOOHUIODS7KHYHKLFOHLVQRWXQORFNHG=,I\RXKDYHORFNHGWKHYHKLFOHXVLQJWKHNH\=,I\RXKDYHORFNHGWKHYHKLFOHXVLQJ.(<ƃ/(66*2/RFNLQJRUXQORFNLQJWKHYHKLFOHZLWKDVPDUWSKRQHRUD'LJLWDO9HKLFOH.H\VWLFNHU5HTXLUHPHQWV=7KHYHKLFOHLVHTXLSSHGZLWKWKH'LJLWDO9HKLFOH.H\IXQFWLRQDQGWKLVVHUYLFHKDVEHHQDFWLYDWHG=$'LJLWDO9HKLFOH.H\VWLFNHU2U=$VXLWDEOHPRELOHWHOHSKRQHZLWK1)&DHULDO7KH'LJLWDO9HKLFOH.H\IXQFWLRQLVDFWLƃYDWHGYLDWKH0HUFHGHVPHFRQQHFWZHEDSSKWWSZZZPHUFHGHVPH7KHPRELOHSKRQHEDWWHU\PXVWEHVXIƃILFLHQWO\FKDUJHG2QVRPHPRELOHSKRQHVWKHIXQFWLRQLVDOVRDYDLODEOHZKHQWKHEDWWHU\LVGLVFKDUJHG2SHQLQJDQGFORVLQJ $

$%<RXFDQFKHFNWKHVXLWDELOLW\RI\RXUPRELOHSKRQHE\HQWHULQJWKHSKRQHQXPEHUDWKWWSZZZPHUFHGHVPH,QIRUPDWLRQDERXWVXLWDEOHPRELOHSKRQHVFDQEHREWDLQHGIURP\RXU0HUFHGHV%HQ]VHUYLFHFHQWUHRUDWKWWSZZZPHUFHGHVEHQ]FRPFRQQHFW%0HUFHGHV%HQ]UHFRPPHQGVWKDW\RXFDUU\WKHHPHUJHQF\NH\LQFDVHRIIXQFWLRQUHVWULFWLRQV%7KHIXQFWLRQLVRQO\DYDLODEOHLQFRPELQDWLRQZLWK0HUFHGHVPHFRQQHFWDQGRQO\LQFHUƃWDLQFRXQWULHV%3URWHFWLYHFDVHVDURXQGWKHPRELOHSKRQHFDQLPSDLUWKHUDQJHRIIXQFWLRQV,IWKHYHKLFOHKDVEHHQSDUNHGIRUORQJHUWKDQWZRZHHNVWKH1)&DHULDOLQWKHGRRUKDQGOHLVGHDFWLYDWHG#3XOOWKHGRRUKDQGOH7KH1)&DHULDOLVDFWLYDWHG#7RXFKWKHGRRUKDQGOHRQWKHGULYHUVGRRULQWKHDUHDZKHUH1)&DHULDOLVORFDWHGZLWKWKHSDUWRIWKHPRELOHSKRQHZKHUHWKH1)&DHULDOLVORFDWHGRUZLWKWKH'LJLWDO9HKLFOH.H\VWLFNHU7KHYHKLFOHLVORFNHGRUXQORFNHGDOWHUQDWHO\,I\RXORVH\RXUPRELOHSKRQHGHDFWLYDWHWKH'LJLWDO9HKLFOH.H\VHUYLFHLQ0HUFHGHVPHFRQQHFWYLDKWWSZZZPHUFHGHVPH/RFNLQJXQORFNLQJWKHYHKLFOHZLWK.(<ƃ/(66*25HTXLUHPHQWV=7KHNH\LVRXWVLGHWKHYHKLFOH=7KHGLVWDQFHEHWZHHQWKHNH\DQGWKHYHKLFOHGRHVQRWH[FHHGP=7KHGULYHUVGRRUDQGWKHGRRUDWZKLFKWKHGRRUKDQGOHLVXVHGDUHFORVHG 2SHQLQJDQGFORVLQJ$

$#7RXQORFNWKHYHKLFOHWRXFKWKHLQQHUVXUƃIDFHRIWKHGRRUKDQGOH#7RORFNWKHYHKLFOHWRXFKVHQVRUVXUIDFHRU#&RQYHQLHQFHFORVLQJWRXFKUHFHVVHGVHQƃVRUVXUIDFHIRUDQH[WHQGHGSHULRG%)XUWKHULQIRUPDWLRQRQFRQYHQLHQFHFORVLQJĺSDJH,I\RXRSHQWKHWDLOJDWHIURPRXWVLGHLWLVDXWRƃPDWLFDOO\XQORFNHG3UREOHPVZLWK.(</(66*23UREOHP 3RVVLEOHFDXVHVFRQVHTXHQFHVDQGP6ROXWLRQV<RXFDQQRORQJHUORFNRUXQORFNWKHYHKLFOHXVLQJ.(</(66*23RVVLEOHFDXVHV=.(</(66*2KDVEHHQGHDFWLYDWHG=7KHNH\EDWWHU\LVGLVFKDUJHGRUQHDUO\GLVFKDUJHG=7KHUHLVLQWHUIHUHQFHIURPDSRZHUIXOUDGLRVLJQDOVRXUFH=7KHNH\LVIDXOW\#$FWLYDWH.(</(66*2#&KHFNWKHEDWWHU\XVLQJWKHEDWWHU\FKHFNODPSDQGUHSODFHLIQHFHVVDU\#8VHWKHHPHUJHQF\NH\WRORFNRUXQORFNWKHYHKLFOH#+DYHWKHYHKLFOHDQGNH\FKHFNHGDWDTXDOLILHGVSHFLDOLVWZRUNVKRS2SHQLQJDQGFORVLQJ $

$$FWLYDWLQJGHDFWLYDWLQJWKHDXWRPDWLFORFNƃLQJIHDWXUH7KHYHKLFOHLVORFNHGDXWRPDWLFDOO\ZKHQWKHLJQLWLRQLVVZLWFKHGRQDQGWKHZKHHOVDUHWXUQƃLQJIDVWHUWKDQZDONLQJSDFH#7RDFWLYDWHSUHVVDQGKROGEXWWRQIRUDSSUR[LPDWHO\ILYHVHFRQGVXQWLODQDFRXVWLFVLJQDOVRXQGV#7RGHDFWLYDWHSUHVVDQGKROGEXWWRQIRUDSSUR[LPDWHO\ILYHVHFRQGVXQWLODQDFRXVWLFVLJQDOVRXQGV:KHQWKHYHKLFOHLVORFNHGDXWRPDWLFDOO\WKHLQGLFDWRUODPSLQEXWWRQOLJKWVXS7KHUHLVDGDQJHURIEHLQJORFNHGRXWLIWKHIXQFƃWLRQLVDFWLYDWHG=:KLOHWKHYHKLFOHLVEHLQJWRZVWDUWHGSXVKHG=2QDUROOHUG\QDPRPHWHU/RFNLQJDQGXQORFNLQJWKHYHKLFOHZLWKWKHHPHUJHQF\NH\/RFNLQJXQORFNLQJWKHGULYHUVGRRUZLWKWKHHPHUJHQF\NH\%,I\RXZLVKWRORFNWKHYHKLFOHHQWLUHO\XVLQJWKHHPHUJHQF\NH\ILUVWSUHVVWKHEXWWRQIRUORFNLQJIURPWKHLQVLGHZKLOHWKHGULYHUVGRRULVRSHQ7KHQSURFHHGWRORFNWKHGULYƃHUVGRRUXVLQJWKHHPHUJHQF\NH\#,QVHUWWKHHPHUJHQF\NH\DVIDUDVLWZLOOJRLQWRRSHQLQJLQWKHFRYHU#3XOODQGKROGWKHGRRUKDQGOH#3XOOWKHFRYHURQWKHHPHUJHQF\NH\DVVWUDLJKWDVSRVVLEOHDZD\IURPWKHYHKLFOHXQWLOLWUHOHDVHV#5HOHDVHWKHGRRUKDQGOH 2SHQLQJDQGFORVLQJ$

$#7RXQORFNWXUQWKHHPHUJHQF\NH\DQWLFORFNZLVHWRSRVLWLRQG#7RORFNWXUQWKHHPHUJHQF\NH\FORFNZLVHWRSRVLWLRQG#&DUHIXOO\SUHVVWKHFRYHURQWRWKHORFNF\OLQƃGHUXQWLOLWHQJDJHVDQGLVVHDWHGILUPO\/RFNLQJWKHIURQWSDVVHQJHUGRRUDQGUHDUGRRUVZLWKWKHHPHUJHQF\NH\#,QVHUWDVXLWDEOHREMHFWHJWKHHPHUJHQF\NH\LQWRRSHQLQJRQWKHGRRUORFN#7RORFNWKHOHIWKDQGVLGHRIWKHYHKLFOHWXUQWKHHPHUJHQF\NH\DQWLFORFNZLVHDVIDUDVLWZLOOJR#7RORFNWKHULJKWKDQGVLGHRIWKHYHKLFOHWXUQWKHHPHUJHQF\NH\FORFNZLVHDVIDUDVLWZLOOJR,IWKHORFNHGGRRULVWKHQFORVHGLWFDQQRORQJHUEHRSHQHGIURPRXWVLGH/RDGFRPSDUWPHQW2SHQLQJWKHWDLOJDWH&:$51,1*5LVNRIH[KDXVWJDVSRLVRQLQJ&RPEXVWLRQHQJLQHVHPLWSRLVRQRXVH[KDXVWJDVHVVXFKDVFDUERQPRQR[LGH([KDXVWJDVHVFDQHQWHUWKHYHKLFOHLQWHULRULIWKHWDLOƃJDWHLVRSHQZKHQWKHHQJLQHLVUXQQLQJHVSHFLDOO\LIWKHYHKLFOHLVLQPRWLRQ#$OZD\VVZLWFKRIIWKHHQJLQHEHIRUHRSHQLQJWKHWDLOJDWH#1HYHUGULYHZLWKWKHWDLOJDWHRSHQ2SHQLQJDQGFORVLQJ $

$*127('DPDJHWRWKHWDLOJDWHFDXVHGE\REVWDFOHVDERYHWKHYHKLFOH7KHWDLOJDWHVZLQJVUHDUZDUGVDQGXSZDUGVZKHQLWLVRSHQHG#0DNHVXUHWKDWWKHUHLVVXIILFLHQWVSDFHEHKLQGDQGDERYHWKHWDLOJDWH#3XOOWKHWDLOJDWHKDQGOH&ORVLQJWKHWDLOJDWH&:$51,1*5LVNRILQMXU\IURPXQVHFXUHGLWHPVLQWKHYHKLFOH,IREMHFWVOXJJDJHRUORDGVDUHQRWVHFXUHGRUQRWVHFXUHGVXIILFLHQWO\WKH\FRXOGVOLSWLSRYHURUEHWKURZQDURXQGDQGWKHUHE\KLWYHKLFOHRFFXSDQWV7KHUHLVDULVNRILQMXU\SDUWLFXODUO\LQWKHHYHQWRIVXGGHQEUDNLQJRUDVXGGHQFKDQJHLQGLUHFWLRQ#$OZD\VVWRZREMHFWVLQVXFKDZD\WKDWWKH\FDQQRWEHWKURZQDURXQG#%HIRUHWKHMRXUQH\VHFXUHREMHFWVOXJƃJDJHRUORDGVDJDLQVWVOLSSLQJRUWLSSLQJRYHU#3XOOWKHWDLOJDWHGRZQZLWKWKHKDQGOHDQGOHWLWGURSLQWRWKHORFN8QORFNLQJWKHWDLOJDWHZLWKWKHHPHUJHQF\NH\#)ROGWKHUHDUVHDWEDFNUHVWIRUZDUGV#5HPRYHWKHORDGFRPSDUWPHQWFRYHUĺSDJH#,QVHUWHPHUJHQF\NH\LQWRRSHQLQJLQWKHWULPDQGSXVKLWLQ7KHWDLOJDWHLVXQORFNHG 2SHQLQJDQGFORVLQJ$

$6LGHZLQGRZV2SHQLQJDQGFORVLQJWKHVLGHZLQGRZV&:$51,1*5LVNRIEHFRPLQJWUDSSHGZKHQRSHQLQJDVLGHZLQGRZ:KHQ\RXRSHQDVLGHZLQGRZSDUWVRIWKHERG\FRXOGEHGUDZQLQRUEHFRPHWUDSSHGEHWZHHQWKHVLGHZLQGRZDQGZLQGRZIUDPH#:KHQRSHQLQJPDNHVXUHWKDWQRERG\LVWRXFKLQJWKHVLGHZLQGRZ#,IVRPHRQHLVWUDSSHGUHOHDVHWKHEXWƃWRQLPPHGLDWHO\RUSXOOLWLQRUGHUWRFORVHWKHVLGHZLQGRZDJDLQ&:$51,1*5LVNRIEHFRPLQJWUDSSHGZKHQFORVLQJDVLGHZLQGRZ:KHQFORVLQJDVLGHZLQGRZERG\SDUWVFRXOGEHWUDSSHGLQWKHFORVLQJDUHDLQWKHSURFHVV#:KHQFORVLQJPDNHVXUHWKDWQRERG\SDUWVDUHLQWKHFORVLQJDUHD#,IVRPHRQHLVWUDSSHGUHOHDVHWKHEXWƃWRQLPPHGLDWHO\RUSUHVVWKHEXWWRQLQRUGHUWRUHRSHQWKHVLGHZLQGRZ&:$51,1*5LVNRIEHFRPLQJWUDSSHGZKHQFKLOGUHQRSHUDWHWKHVLGHZLQGRZV&KLOGUHQFRXOGEHFRPHWUDSSHGLIWKH\RSHUƃDWHWKHVLGHZLQGRZVSDUWLFXODUO\ZKHQXQDWƃWHQGHG#$FWLYDWHWKHRYHUULGHIHDWXUHIRUWKHUHDUVLGHZLQGRZV#:KHQOHDYLQJWKHYHKLFOHDOZD\VWDNHWKHNH\ZLWK\RXDQGORFNWKHYHKLFOH#1HYHUOHDYHFKLOGUHQXQDWWHQGHGLQWKHYHKLFOH5HTXLUHPHQWV=7KHSRZHUVXSSO\RUWKHLJQLWLRQLVVZLWFKHGRQ&ORVLQJ2SHQLQJ7KHEXWWRQVRQWKHGULYHUVGRRUWDNHSUHFHƃGHQFH#7RVWDUWDXWRPDWLFRSHUDWLRQSUHVVWKHbEXWWRQEH\RQGWKHSRLQWRIUHVLVWDQFHRUSXOODQGUHOHDVHLW2SHQLQJDQGFORVLQJ $

$#7RLQWHUUXSWDXWRPDWLFRSHUDWLRQSUHVVRUSXOOWKHbEXWWRQDJDLQ:KHQWKHYHKLFOHLVVZLWFKHGRIIWKHVLGHZLQƃGRZVFDQFRQWLQXHEHLQJRSHUDWHG7KHIXQFWLRQLVDYDLODEOHIRUDURXQGILYHPLQXWHVRUXQWLODIURQWGRRULVRSHQHG$XWRPDWLFUHYHUVHIXQFWLRQRIWKHVLGHZLQƃGRZV,IDQREMHFWEORFNVDVLGHZLQGRZGXULQJWKHFORVLQJSURFHVVWKHVLGHZLQGRZRSHQVDJDLQDXWRPDWLFDOO\7KHDXWRPDWLFUHYHUVHIXQFWLRQLVRQO\DQDLGDQGLVQRWDVXEVWLWXWHIRU\RXUDWWHQƃWLYHQHVV#:KHQFORVLQJPDNHVXUHWKDWQRERG\SDUWVDUHLQWKHFORVLQJDUHD&:$51,1*5LVNRIEHFRPLQJWUDSSHGGHVSLWHWKHUHEHLQJUHYHUVLQJSURWHFWLRQRQWKHVLGHZLQGRZ7KHUHYHUVHIXQFWLRQGRHVQRWUHDFW=WRVRIWOLJKWDQGWKLQREMHFWVHJVPDOOILQJHUV=GXULQJUHVHWWLQJ7KLVPHDQVWKDWWKHUHYHUVHIXQFWLRQFDQQRWSUHYHQWVRPHRQHIURPEHFRPLQJWUDSSHGLQWKHVHVLWXDWLRQV#:KHQFORVLQJPDNHVXUHWKDWQRERG\SDUWVDUHLQWKHFORVLQJDUHD#,IVRPHRQHEHFRPHVWUDSSHGSUHVVWKHbEXWWRQWRRSHQWKHVLGHZLQGRZDJDLQ&RQYHQLHQFHRSHQLQJYHQWLODWLQJWKHYHKLFOHEHIRUHVWDUWLQJDMRXUQH\&:$51,1*5LVNRIHQWUDSPHQWZKHQRSHQLQJDVLGHZLQGRZ:KHQRSHQLQJDVLGHZLQGRZSDUWVRIWKHERG\FRXOGEHGUDZQLQRUEHFRPHWUDSSHGEHWZHHQWKHVLGHZLQGRZDQGZLQGRZIUDPH#:KHQRSHQLQJPDNHVXUHWKDWQRERG\LVWRXFKLQJWKHVLGHZLQGRZ#5HOHDVHWKHEXWWRQLPPHGLDWHO\LIVRPHERG\EHFRPHVWUDSSHG#3UHVVDQGKROGWKH6EXWWRQRQWKHNH\7KHIROORZLQJIXQFWLRQVDUHSHUIRUPHG=7KHYHKLFOHLVXQORFNHG=7KHVLGHZLQGRZVDUHRSHQHG=7KHSDQRUDPLFVOLGLQJVXQURRILVRSHQHG=7KHVHDWYHQWLODWLRQRIWKHGULYHUVVHDWLVVZLWFKHGRQ,IWKHUROOHUVXQEOLQGVRIWKHSDQRUDPLFVOLGLQJVXQURRIDUHFORVHGWKHUROOHUVXQEOLQGVDUHRSHQHGILUVW#7RFRQWLQXHFRQYHQLHQFHRSHQLQJSUHVVWKH6EXWWRQDJDLQ#7RLQWHUUXSWFRQYHQLHQFHRSHQLQJUHOHDVHWKH6EXWWRQ 2SHQLQJDQGFORVLQJ$

$&RQYHQLHQFHFORVLQJFORVLQJWKHYHKLFOHIURPRXWVLGH&:$51,1*5LVNRIHQWUDSPHQWFDXVHGE\LQDGYHUWHQWFRQYHQLHQFHFORVLQJ:KHQWKHFRQYHQLHQFHFORVLQJIHDWXUHLVRSHUDWLQJSDUWVRIWKHERG\FRXOGEHFRPHWUDSSHGLQWKHFORVLQJDUHDRIWKHVLGHZLQƃGRZDQGWKHVOLGLQJVXQURRI#2EVHUYHWKHFRPSOHWHFORVLQJSURFHƃGXUHZKHQXVLQJFRQYHQLHQFHFORVLQJ#:KHQFORVLQJPDNHVXUHWKDWQRERG\SDUWVDUHLQWKHFORVLQJDUHD#3UHVVDQGKROGWKH7EXWWRQRQWKHNH\7KHIROORZLQJIXQFWLRQVDUHSHUIRUPHG=7KHYHKLFOHLVORFNHG=7KHVLGHZLQGRZVDUHFORVHG=7KHSDQRUDPLFVOLGLQJVXQURRILVFORVHG#7RFORVHWKHUROOHUVXQEOLQGVSUHVVWKH7EXWWRQDJDLQ#7RLQWHUUXSWFRQYHQLHQFHFORVLQJUHOHDVHWKH7EXWWRQ%&RQYHQLHQFHFORVLQJFDQDOVREHRSHUDWHGZLWK.(</(66*2ĺSDJH3UREOHPVZLWKWKHVLGHZLQGRZV3UREOHP 3RVVLEOHFDXVHVFRQVHTXHQFHVDQGP6ROXWLRQV$VLGHZLQGRZFDQQRWEHFORVHGDQG\RXFDQQRWVHHWKHFDXVH#&KHFNWRVHHLIDQ\REMHFWVDUHLQWKHZLQGRZJXLGH&:$51,1*5LVNRIEHFRPLQJWUDSSHGRUIDWDOO\LQMXUHGLIUHYHUVLQJSURWHFWLRQLVQRWDFWLYDWHG,I\RXFORVHDVLGHZLQGRZDJDLQLPPHGLDWHO\DIWHULWKDVEHHQEORFNHGRUUHVHWWKHVLGHZLQGRZFORVHVZLWKLQFUHDVHGRUPD[LPXPIRUFH7KHUHYHUVLQJIHDWXUHLVWKHQQRWDFWLYH3DUWVRIWKHERG\FRXOGEHFRPHWUDSSHGLQWKHFORVLQJDUHDLQWKHSURFHVV#0DNHVXUHWKDWQRSDUWVRIWKHERG\DUHLQWKHFORVLQJDUHD#7RVWRSWKHFORVLQJSURFHVVUHOHDVHWKHEXWWRQRUSUHVVWKHEXWWRQDJDLQWRUHRSHQWKHVLGHZLQƃGRZ2SHQLQJDQGFORVLQJ $

$3UREOHP 3RVVLEOHFDXVHVFRQVHTXHQFHVDQGP6ROXWLRQV,IDVLGHZLQGRZLVREVWUXFWHGGXULQJFORVLQJDQGUHRSHQVDJDLQVOLJKWO\#,PPHGLDWHO\DIWHUWKHZLQGRZEORFNVSXOOWKHFRUUHVSRQGLQJEXWWRQDJDLQXQWLOWKHVLGHZLQGRZKDVFORVHGDQGKROGWKHEXWWRQIRUDQDGGLWLRQDOVHFRQG7KHVLGHZLQGRZLVFORVHGZLWKLQFUHDVHGIRUFH,IDVLGHZLQGRZLVREVWUXFWHGDJDLQGXULQJFORVLQJDQGUHRSHQVDJDLQVOLJKWO\#5HSHDWWKHSUHYLRXVVWHS7KHVLGHZLQGRZLVFORVHGZLWKRXWWKHDXWRPDWLFUHYHUVLQJIXQFWLRQ7KHVLGHZLQGRZVFDQQRWEHRSHQHGRUFORVHGXVLQJWKHFRQYHQLHQFHRSHQLQJIHDWXUH7KHNH\EDWWHU\LVGLVFKDUJHGRUQHDUO\GLVFKDUJHG#&KHFNWKHEDWWHU\XVLQJWKHEDWWHU\FKHFNODPSDQGUHSODFHLIQHFHVVDU\6OLGLQJVXQURRI2SHQLQJDQGFORVLQJWKHVOLGLQJVXQURRI%7KHWHUPVOLGLQJVXQURRIDOVRUHIHUVWRWKHSDQRUDPLFVOLGLQJVXQURRI&:$51,1*5LVNRIEHFRPLQJWUDSSHGZKLOHRSHQLQJDQGFORVLQJWKHVOLGLQJVXQURRI'XULQJRSHQLQJDQGFORVLQJSDUWVRIWKHERG\FRXOGJHWFDXJKWLQWKHVZHHSRIWKHVOLGLQJVXQURRI#:KHQRSHQLQJRUFORVLQJPDNHVXUHWKDWQRERG\SDUWVDUHLQWKHVZHHS#5HOHDVHWKHEXWWRQLPPHGLDWHO\LIVRPHERG\EHFRPHVWUDSSHGRU#3UHVVWKHEXWWRQLQDQ\GLUHFWLRQGXULQJWKHDXWRPDWLFRSHQLQJFORVLQJSURFHVV7KHRSHQLQJFORVLQJSURFHVVLVVWRSƃSHG 2SHQLQJDQGFORVLQJ$

$&:$51,1*5LVNRIHQWUDSPHQWLIWKHVOLGƃLQJVXQURRILVRSHUDWHGE\FKLOGUHQ&KLOGUHQRSHUDWLQJWKHVOLGLQJVXQURRIFRXOGJHWFDXJKWLQWKHPRYLQJSDUWVSDUWLFXODUO\LIXQDWWHQGHG#1HYHUOHDYHFKLOGUHQXQDWWHQGHGLQWKHYHKLFOH#:KHQOHDYLQJWKHYHKLFOHDOZD\VWDNHWKHNH\ZLWK\RXDQGORFNWKHYHKLFOH&:$51,1*5LVNRIHQWUDSPHQWZKLOHRSHQLQJDQGFORVLQJWKHUROOHUVXQEOLQGV:KHQRSHQLQJRUFORVLQJPDNHVXUHWKDWQRERG\SDUWVEHFRPHWUDSSHGEHWZHHQWKHUROOHUVXQEOLQGDQGIUDPHRUVOLGLQJVXQURRI#:KHQRSHQLQJRUFORVLQJPDNHVXUHWKDWQRERG\SDUWVDUHLQWKHVZHHSRIWKHUROOHUVXQEOLQG#5HOHDVHWKHVZLWFKLPPHGLDWHO\LIVRPHERG\EHFRPHVWUDSSHGRU#3UHVVWKHVZLWFKLQDQ\GLUHFWLRQGXULQJWKHDXWRPDWLFRSHQLQJFORVLQJSURFHVV7KHRSHQLQJFORVLQJSURFHVVLVVWRSƃSHG*127(0DOIXQFWLRQFDXVHGE\VQRZDQGLFH6QRZDQGLFHPD\OHDGWRDPDOIXQFWLRQRIWKHVOLGLQJVXQURRI#2QO\RSHQWKHVOLGLQJVXQURRILILWLVIUHHRIVQRZDQGLFH*127('DPDJHFDXVHGE\SURWUXGLQJREMHFWV2EMHFWVWKDWSURWUXGHIURPWKHVOLGLQJVXQƃURRIPD\GDPDJHWKHVHDOLQJVWULSV#'RQRWDOORZDQ\WKLQJWRSURWUXGHIURPWKHVOLGLQJVXQURRI*127(,PSRUWDQWSRLQWVWRUHPHPEHUZKHQDURRIUDFNLVILWWHG:KHQDURRIUDFNLVILWWHGUDLVLQJRURSHQLQJWKHVOLGLQJVXQURRIPD\EHOLPLWHG#&KHFNZKHWKHUWKHVOLGLQJVXQURRIFDQEHUDLVHGRURSHQHGZKHQDURRIUDFNLVILWWHG#,ILQGRXEWGRQRWUDLVHRURSHQWKHVOLGLQJVXQURRI2SHQLQJDQGFORVLQJ $

$7RUDLVH7RRSHQ7RFORVHORZHU8VHWKHWEXWWRQWRRSHUDWHWKHSDQRUDPLFVOLGLQJVXQURRIDQGWKHUROOHUVXQEOLQG=7KHSDQRUDPLFVOLGLQJVXQURRIFDQEHRSHQHGRQO\ZKHQWKHUROOHUVXQEOLQGLVRSHQ=7KHUROOHUVXQEOLQGFDQEHRSHUDWHGRQO\ZKHQWKHSDQRUDPLFVOLGLQJVXQURRILVFORVHG#7RVWDUWDXWRPDWLFRSHUDWLRQSUHVVWKHWEXWWRQEH\RQGWKHSRLQWRIUHVLVWDQFHRUSXOODQGUHOHDVHLW#7RLQWHUUXSWDXWRPDWLFRSHUDWLRQEULHIO\SUHVVWKHWEXWWRQLQDQ\GLUHFWLRQ7KHRSHQLQJFORVLQJSURFHVVLVVWRSSHG=&KHFNZKHWKHUWKHSDQRUDPLFVOLGLQJVXQURRIFDQEHUDLVHGRURSHQHGZKHQDURRIUDFNLVILWWHG$XWRPDWLFUHYHUVLQJIXQFWLRQRIWKHVOLGLQJVXQURRI,IWKHUHLVDQREMHFWREVWUXFWLQJWKHVOLGLQJVXQƃURRIGXULQJWKHFORVLQJSURFHVVWKHVOLGLQJVXQƃURRIRSHQVDJDLQDXWRPDWLFDOO\7KHDXWRPDWLFUHYHUVHIXQFWLRQLVRQO\DQDLGDQGLVQRWDVXEƃVWLWXWHIRU\RXUDWWHQWLYHQHVV#:KHQFORVLQJPDNHVXUHWKDWQRERG\SDUWVDUHLQWKHFORVLQJDUHD&:$51,1*5LVNRIHQWUDSPHQWHYHQZLWKWKHUHYHUVLQJIHDWXUHDFWLYH7KHUHYHUVHIXQFWLRQGRHVQRWUHDFWLQSDUWLFƃXODU=WRVRIWOLJKWDQGWKLQREMHFWVHJVPDOOILQJHUV=RYHUWKHODVWPPRIWKHFORVLQJSDWK=GXULQJUHVHWWLQJ7KLVPHDQVWKDWWKHUHYHUVHIXQFWLRQFDQQRWSUHYHQWVRPHRQHIURPEHFRPLQJWUDSSHGLQWKHVHVLWXDWLRQV#:KHQFORVLQJPDNHVXUHWKDWQRERG\SDUWVDUHLQWKHFORVLQJDUHD#5HOHDVHWKHEXWWRQLPPHGLDWHO\LIVRPHERG\EHFRPHVWUDSSHGRU#%ULHIO\SUHVVWKHEXWWRQLQDQ\GLUHFWLRQGXULQJDXWRPDWLFRSHUDWLRQ7KHFORVLQJSURFHVVLVVWRSSHG 2SHQLQJDQGFORVLQJ$

$$XWRPDWLFUHYHUVLQJIXQFWLRQRIWKHUROOHUVXQEOLQG,IWKHUHLVDQREMHFWREVWUXFWLQJWKHUROOHUVXQƃEOLQGGXULQJWKHFORVLQJSURFHVVWKHUROOHUVXQƃEOLQGRSHQVDJDLQDXWRPDWLFDOO\7KHDXWRPDWLFUHYHUVHIXQFWLRQLVRQO\DQDLGDQGLVQRWDVXEƃVWLWXWHIRU\RXUDWWHQWLYHQHVV#:KHQFORVLQJWKHUROOHUVXQEOLQGPDNHVXUHWKDWQRERG\SDUWVDUHLQWKHUDQJHRIPRYHƃPHQW&:$51,1*5LVNRIEHFRPLQJWUDSSHGGHVSLWHUHYHUVLQJIXQFWLRQ,QSDUWLFXODUWKHUHYHUVLQJIXQFWLRQGRHVQRWUHDFWWRVRIWOLJKWDQGWKLQREMHFWVHJVPDOOILQJHUV7KLVPHDQVWKDWWKHUHYHUVLQJIXQFWLRQFDQƃQRWSUHYHQWHQWUDSPHQWLQWKHVHVLWXDWLRQV#:KHQFORVLQJWKHUROOHUVXQEOLQGPDNHVXUHWKDWQRERG\SDUWVDUHLQWKHUDQJHRIPRYHPHQW#5HOHDVHWKHEXWWRQLPPHGLDWHO\LIVRPHERG\EHFRPHVWUDSSHGRU#3UHVVWKHEXWWRQLQDQ\GLUHFWLRQGXULQJWKHDXWRPDWLFFORVLQJSURFHVV7KHFORVLQJSURFHVVLVVWRSSHG$XWRPDWLFIHDWXUHVRIWKHVOLGLQJVXQURRI%7KHWHUPVOLGLQJVXQURRIDOVRUHIHUVWRWKHSDQRUDPLFVOLGLQJVXQURRI%\SXVKLQJRUSXOOLQJWKHWEXWWRQ\RXFDQLQWHUUXSWWKHDXWRPDWLFIXQFWLRQV5DLQFORVLQJIXQFWLRQZKHQGULYLQJDQG$XWRPDWLFORZHULQJIHDWXUH$XWRPDWLFFORVLQJZKHQWKHYHKLFOHLVVWDƃWLRQDU\=LILWVWDUWVWRUDLQGHWHFWLRQE\WKHUDLQVHQƃVRURQWKHZLQGVFUHHQ=DIWHUVL[KRXUV=LIWKHUHLVDPDOIXQFWLRQLQWKHSRZHUVXSSO\7KHUHDURIWKHVOLGLQJVXQURRILVWKHQUDLVHG5DLQFORVLQJIXQFWLRQZKHQGULYLQJ9HKLFOHVZLWKDSDQRUDPLFVOLGLQJVXQURRI,ILWVWDUWVWRUDLQWKHUDLVHGVOLGLQJVXQURRILVDXWRPDWLFDOO\ORZHUHGZKLOHWKHYHKLFOHLVLQPRWLRQ$XWRPDWLFORZHULQJIHDWXUH9HKLFOHVZLWKDSDQRUDPLFVOLGLQJVXQURRI,IWKHVOLGLQJVXQURRILVUDLVHGDWWKHUHDUWKHVOLGƃLQJVXQURRILVDXWRPDWLFDOO\ORZHUHGVOLJKWO\DWKLJKHUVSHHGV$WORZVSHHGVLWLVUDLVHGDJDLQDXWRPDWLFDOO\&:$51,1*5LVNRIHQWUDSPHQWE\DXWRƃPDWLFORZHULQJRIWKHVOLGLQJVXQURRI$WKLJKVSHHGVWKHUDLVHGVOLGLQJVXQURRIDXWRPDWLFDOO\ORZHUVVOLJKWO\DWWKHUHDU7KLVFRXOGWUDS\RXRURWKHUSHUVRQV#0DNHVXUHWKDWQRERG\UHDFKHVLQWRWKHVZHHSRIWKHVOLGLQJVXQURRIZKLOVWWKHYHKLFOHLVLQPRWLRQ2SHQLQJDQGFORVLQJ $

$#,IVRPHERG\EHFRPHVWUDSSHGEULHIO\SXVKWKHVOLGLQJVXQURRIEXWWRQIRUƃZDUGVRUEDFNZDUGV7KHVOLGLQJVXQURRIOLIWVGXULQJRSHQLQJ3UREOHPVZLWKWKHVOLGLQJVXQURRI%7KHWHUPVOLGLQJVXQURRIDOVRUHIHUVWRWKHSDQRUDPLFVOLGLQJVXQURRI3UREOHP 3RVVLEOHFDXVHVFRQVHTXHQFHVDQGP6ROXWLRQV7KHVOLGLQJVXQURRIFDQQRWEHFORVHGDQG\RXFDQQRWVHHWKHFDXVH &:$51,1*5LVNRIEHFRPLQJWUDSSHGRUIDWDOLQMXU\E\FORVLQJWKHVOLGLQJVXQURRIDJDLQ,I\RXFORVHWKHVOLGLQJVXQURRIDJDLQLPPHGLDWHO\DIWHULWKDVEHHQEORFNHGRUUHVHWWKHVOLGLQJVXQURRIFORVHVZLWKLQFUHDVHGIRUFH3DUWVRIWKHERG\FRXOGEHFRPHWUDSSHGLQWKHFORVLQJDUHDLQWKHSURFHVV#0DNHVXUHWKDWQRSDUWVRIWKHERG\DUHLQWKHFORVLQJDUHD#5HOHDVHWKHEXWWRQLPPHGLDWHO\LIVRPHERG\EHFRPHVWUDSSHGRU#3UHVVWKHEXWWRQLQDQ\GLUHFWLRQGXULQJWKHDXWRPDWLFFORVLQJSURFHVV7KHFORVLQJSURFHVVLVVWRSSHG,IWKHVOLGLQJVXQURRILVREVWUXFWHGGXULQJFORVLQJDQGUHRSHQVDJDLQVOLJKWO\#,PPHGLDWHO\DIWHUDXWRPDWLFUHYHUVLQJSXOODQGKROGWKHWEXWWRQGRZQDJDLQWRWKHSRLQWRIUHVLVWƃDQFHXQWLOWKHVOLGLQJVXQURRILVFORVHG7KHVOLGLQJVXQURRILVFORVHGZLWKLQFUHDVHGIRUFH 2SHQLQJDQGFORVLQJ$

$3UREOHP 3RVVLEOHFDXVHVFRQVHTXHQFHVDQGP6ROXWLRQV,IWKHVOLGLQJVXQURRILVREVWUXFWHGDJDLQDQGUHRSHQVDJDLQVOLJKWO\#5HSHDWWKHSUHYLRXVVWHS7KHVOLGLQJVXQURRILVFORVHGDJDLQZLWKLQFUHDVHGIRUFH9HKLFOHVZLWKDSDQRUDPLFVOLGLQJVXQURRI7KHVOLGLQJVXQURRIRUWKHUROOHUVXQEOLQGGRHVQRWRSHUDWHVPRRWKO\#3XOODQGKROGWKHEXWWRQWOLWWOHE\OLWWOHXQWLOWKHVOLGLQJVXQURRILVIXOO\FORVHG#3XOODQGKROGWKHEXWWRQWOLWWOHE\OLWWOHXQWLOWKHUROOHUVXQEOLQGLVIXOO\FORVHG#8VHDXWRPDWLFRSHUDWLRQWRIXOO\RSHQDQGWKHQFORVHWKHVOLGLQJVXQURRI$QWLWKHIWSURWHFWLRQ)XQFWLRQRIWKHLPPRELOLVHU7KHLPPRELOLVHUSUHYHQWV\RXUYHKLFOHIURPEHLQJVWDUWHGZLWKRXWWKHFRUUHFWNH\7KHLPPRELOLVHULVDXWRPDWLFDOO\DFWLYDWHGZKHQWKHLJQLWLRQLVVZLWFKHGRIIDQGGHDFWLYDWHGZKHQWKHLJQLWLRQLVVZLWFKHGRQ$7$$QWL7KHIW$ODUPV\VWHP)XQFWLRQRIWKH$7$V\VWHP,IWKH$7$V\VWHPLVSULPHGDYLVXDODQGDXGLEOHDODUPLVWULJJHUHGLQWKHIROORZLQJVLWXDWLRQV=:KHQDGRRULVRSHQHG=:KHQWKHWDLOJDWHLVRSHQHG=:KHQWKHERQQHWLVRSHQHG=:KHQWKHLQWHULRUSURWHFWLRQLVWULJJHUHGĺSDJH=:KHQWRZDZD\SURWHFWLRQLVWULJJHUHGĺSDJH7KH$7$V\VWHPLVSULPHGDXWRPDWLFDOO\DIWHUDSSUR[LPDWHO\VHFRQGV=$IWHUORFNLQJWKHYHKLFOHZLWKWKHNH\=$IWHUORFNLQJWKHYHKLFOHXVLQJ.(</(66*22SHQLQJDQGFORVLQJ $

$,QGLFDWRUODPSIODVKHVZKHQWKH$7$V\VWHPLVDFWLYDWHG7KH$7$V\VWHPLVDXWRPDWLFDOO\GHDFWLYDWHG=$IWHUXQORFNLQJWKHYHKLFOHZLWKWKHNH\=$IWHUSUHVVLQJWKHVWDUWVWRSEXWWRQZLWKWKHNH\LQWKHVWRZDJHFRPSDUWPHQWĺSDJH=$IWHUXQORFNLQJWKHYHKLFOHXVLQJ.(</(66*2%:KHQWKH0HUFHGHVƄ%HQ]HPHUJHQF\FDOOV\VWHPLVDFWLYHDQGWKHDODUPVWD\VRQIRUPRUHWKDQVHFRQGVDPHVVDJHLVDXWRƃPDWLFDOO\VHQWWRWKH&XVWRPHU$VVLVWDQFH&HQWUHĺSDJH'HDFWLYDWLQJWKH$7$#3UHVVWKH6RU7EXWWRQRQWKHNH\RU#3UHVVWKHVWDUWVWRSEXWWRQZLWKWKHNH\LQWKHVWRZDJHFRPSDUWPHQWĺSDJH'HDFWLYDWLQJWKHDODUPXVLQJ.(</(66*2#*UDVSWKHRXWVLGHGRRUKDQGOHZLWKWKHNH\RXWVLGHWKHYHKLFOH)XQFWLRQRIWRZDZD\SURWHFWLRQ$QDXGLEOHDQGYLVXDODODUPLVWULJJHUHGLI\RXUYHKLFOHVDQJOHRILQFOLQDWLRQLVDOWHUHGZKLOHWRZDZD\SURWHFWLRQLVSULPHG7RZDZD\SURWHFWLRQLVDXWRPDWLFDOO\SULPHGDIWHUDERXWVHFRQGV=$IWHUORFNLQJWKHYHKLFOHZLWKWKHNH\=$IWHUORFNLQJWKHYHKLFOHXVLQJ.(</(66*27RZDZD\SURWHFWLRQLVRQO\SULPHGZKHQWKHIROƃORZLQJFRPSRQHQWVDUHFORVHG=7KHGRRUV=7KHWDLOJDWH7RZDZD\SURWHFWLRQLVDXWRPDWLFDOO\GHDFWLYDƃWHG=$IWHUSUHVVLQJWKH6EXWWRQRQWKHNH\=$IWHUSUHVVLQJWKHVWDUWVWRSEXWWRQZLWKWKHNH\LQWKHVWRZDJHFRPSDUWPHQWĺSDJH=$IWHUXQORFNLQJWKHYHKLFOHXVLQJ.(</(66*23ULPLQJGHDFWLYDWLQJWRZDZD\SURWHFWLRQ0XOWLPHGLDV\VWHP,.6HWWLQJV.6FKQHOO]XJULII4XLFNDFFHVV#3ULPHGHDFWLYDWH7RZDZD\SURWHFWLRQ7RZDZD\SURWHFWLRQUHPDLQVGHDFWLYDWHGXQWLO=7KHYHKLFOHLVXQORFNHGDJDLQ=$GRRULVRSHQHG=7KHYHKLFOHLVORFNHGDJDLQ 2SHQLQJDQGFORVLQJ$

$)XQFWLRQRILQWHULRUSURWHFWLRQ:KHQLQWHULRUSURWHFWLRQLVSULPHGDYLVXDODQGDXGLEOHDODUPLVWULJJHUHGLIPRYHPHQWLVGHWHFƃWHGLQWKHYHKLFOHLQWHULRU,QWHULRUSURWHFWLRQLVSULPHGDXWRPDWLFDOO\DIWHUDSSUR[LPDWHO\VHFRQGV=$IWHUORFNLQJWKHYHKLFOHZLWKWKHNH\=$IWHUORFNLQJWKHYHKLFOHXVLQJ.(</(66*2,QWHULRUSURWHFWLRQLVRQO\SULPHGZKHQWKHIROƃORZLQJFRPSRQHQWVDUHFORVHG='RRUV=7KHWDLOJDWH,QWHULRUSURWHFWLRQLVDXWRPDWLFDOO\GHDFWLYDWHG=$IWHUSUHVVLQJWKH6EXWWRQRQWKHNH\=$IWHUSUHVVLQJWKHVWDUWVWRSEXWWRQZLWKWKHNH\LQWKHVWRZDJHFRPSDUWPHQWĺSDJH=$IWHUXQORFNLQJWKHYHKLFOHXVLQJ.(</(66*27KHIROORZLQJVLWXDWLRQVFDQOHDGWRDIDOVHDODUP=0RYLQJREMHFWVVXFKDVPDVFRWVLQWKHYHKLƃFOHLQWHULRU=7KHVLGHZLQGRZLVRSHQ=7KHSDQRUDPLFVOLGLQJVXQURRILVRSHQ3ULPLQJGHDFWLYDWLQJLQWHULRUSURWHFWLRQ0XOWLPHGLDV\VWHP,.6HWWLQJV.6FKQHOO]XJULII4XLFNDFFHVV#3ULPHGHDFWLYDWH,QWHULRUPRWLRQVHQVRU,QWHULRUSURWHFWLRQUHPDLQVGHDFWLYDWHGXQWLO=7KHYHKLFOHLVXQORFNHGDJDLQ=$GRRULVRSHQHG=7KHYHKLFOHLVORFNHGDJDLQ2SHQLQJDQGFORVLQJ $

$1RWHVRQWKHFRUUHFWGULYHUVVHDWSRVLWLRQ&:$51,1*5LVNRILQMXU\WKURXJKDGMXVWƃLQJYHKLFOHVHWWLQJVZKLOHWKHYHKLFOHLVLQPRWLRQ<RXFRXOGORVHFRQWURORIWKHYHKLFOHLQWKHIROORZLQJVLWXDWLRQV=LI\RXDGMXVWWKHGULYHUVVHDWWKHKHDGUHVWUDLQWVWKHVWHHULQJZKHHORUWKHPLUƃURUZKLOHWKHYHKLFOHLVLQPRWLRQ=LI\RXIDVWHQ\RXUVHDWEHOWZKLOHWKHYHKLƃFOHLVLQPRWLRQ#%HIRUHVWDUWLQJWKHHQJLQHDGMXVWWKHGULYHUVVHDWWKHKHDGUHVWUDLQWVWKHVWHHULQJZKHHORUWKHPLUURUDQGIDVWHQ\RXUVHDWEHOW (QVXUHWKHIROORZLQJZKHQDGMXVWLQJWKHVWHHULQJZKHHOVHDWEHOWDQGGULYHUVVHDW=\RXDUHDVIDUDZD\IURPWKHGULYHUVDLUEDJDVSRVVLEOH=\RXDUHVLWWLQJLQDQRUPDOXSULJKWSRVLWLRQ=\RXUWKLJKVDUHVOLJKWO\VXSSRUWHGE\WKHVHDWFXVKLRQ=\RXUOHJVDUHQRWHQWLUHO\VWUHWFKHGDQG\RXFDQGHSUHVVWKHSHGDOVSURSHUO\=WKHEDFNRI\RXUKHDGLVVXSSRUWHGDWH\HOHYHOE\WKHFHQWUHRIWKHKHDGUHVWUDLQW=\RXFDQKROGWKHVWHHULQJZKHHOZLWK\RXUDUPVVOLJKWO\EHQW=\RXFDQPRYH\RXUOHJVIUHHO\=\RXFDQVHHDOOWKHGLVSOD\VRQWKHLQVWUXƃPHQWFOXVWHUFOHDUO\=\RXKDYHDJRRGRYHUYLHZRIWKHWUDIILFFRQƃGLWLRQV=WKHVHDWEHOWLVSXOOHGVQXJO\DJDLQVWWKHERG\DQGLVURXWHGDFURVVWKHFHQWUHRI\RXUVKRXOGHUDQGDFURVV\RXUKLSVLQWKHSHOYLFDUHD 6HDWVDQGVWRZLQJ$

$6HDWV$GMXVWLQJWKHIURQWVHDWPHFKDQLFDOO\ZLWKƃRXW6HDW&RPIRUW3DFNDJH&:$51,1*5LVNRIEHFRPLQJWUDSSHGLIWKHVHDWVDUHDGMXVWHGE\FKLOGUHQ&KLOGUHQFRXOGEHFRPHWUDSSHGLIWKH\DGMXVWWKHVHDWVSDUWLFXODUO\ZKHQXQDWWHQGHG#:KHQOHDYLQJWKHYHKLFOHDOZD\VWDNHWKHNH\ZLWK\RXDQGORFNWKHYHKLFOH7KLVDOVRDSSOLHVWRWKH'LJLWDO&DU.H\VWLFNHUDQGPRELOHSKRQHVLIWKH'LJLWDO&DU.H\RQVPDUWSKRQHIXQFWLRQLVDFWLYDWHGYLDWKH0HUFHGHVPHFRQQHFWZHEDSS#1HYHUOHDYHFKLOGUHQXQDWWHQGHGLQWKHYHKLFOH&:$51,1*5LVNRIEHFRPLQJWUDSSHGZKHQDGMXVWLQJWKHVHDWV:KHQ\RXDGMXVWDVHDW\RXRURWKHUYHKLFOHRFFXSDQWVFRXOGEHFRPHWUDSSHGHJRQWKHVHDWJXLGHUDLO#0DNHVXUHZKHQDGMXVWLQJDVHDWWKDWQRRQHKDVDQ\ERG\SDUWVLQWKHVZHHSRIWKHVHDW2EVHUYHWKHVDIHW\QRWHVRQ$LUEDJVDQG&KLOƃGUHQLQWKHYHKLFOH&:$51,1*5LVNRIDFFLGHQWGXHWRWKHGULYHUVVHDWQRWEHLQJHQJDJHG,IWKHGULYHUVVHDWLVQRWHQJDJHGLWFRXOGPRYHXQH[SHFWHGO\ZKLOHWKHYHKLFOHLVLQPRWLRQ7KLVFRXOGFDXVH\RXWRORVHFRQWURORIWKHYHKLFOH#$OZD\VPDNHVXUHWKDWWKHGULYHUVVHDWLVHQJDJHGEHIRUHVWDUWLQJWKHYHKLFOH&:$51,1*5LVNRILQMXU\WKURXJKDGMXVWƃLQJYHKLFOHVHWWLQJVZKLOHWKHYHKLFOHLVLQPRWLRQ<RXFRXOGORVHFRQWURORIWKHYHKLFOHLQWKHIROORZLQJVLWXDWLRQV=LI\RXDGMXVWWKHGULYHUVVHDWWKHKHDGUHVWUDLQWVWKHVWHHULQJZKHHORUWKHPLUƃURUZKLOHWKHYHKLFOHLVLQPRWLRQ=LI\RXIDVWHQ\RXUVHDWEHOWZKLOHWKHYHKLƃFOHLVLQPRWLRQ#%HIRUHVWDUWLQJWKHHQJLQHDGMXVWWKHGULYHUVVHDWWKHKHDGUHVWUDLQWVWKHVWHHULQJZKHHORUWKHPLUURUDQGIDVWHQ\RXUVHDWEHOW&:$51,1*5LVNRIEHFRPLQJWUDSSHGLIWKHVHDWKHLJKWLVDGMXVWHGFDUHOHVVO\,I\RXDGMXVWWKHVHDWKHLJKWFDUHOHVVO\\RXRURWKHUYHKLFOHRFFXSDQWVFRXOGEHWUDSSHGDQGWKHUHE\LQMXUHG6HDWVDQGVWRZLQJ $

$&KLOGUHQLQSDUWLFXODUFRXOGDFFLGHQWDOO\SUHVVWKHHOHFWULFDOVHDWDGMXVWPHQWEXWWRQVDQGEHFRPHWUDSSHG#:KLOHPRYLQJWKHVHDWVPDNHVXUHWKDWKDQGVRURWKHUERG\SDUWVGRQRWJHWXQGHUWKHOHYHUDVVHPEO\RIWKHVHDWDGMXVWPHQWV\VWHP&:$51,1*5LVNRILQMXU\GXHWRKHDGUHVWUDLQWVZKLFKDUHQRWILWWHGRUDUHDGMXVWHGLQFRUUHFWO\,IKHDGUHVWUDLQWVDUHQRWILWWHGRUDUHDGMXVƃWHGLQFRUUHFWO\WKH\FDQQRWSURYLGHSURWHFƃWLRQDVLQWHQGHG7KHUHLVDQLQFUHDVHGULVNRILQMXU\LQWKHKHDGDQGQHFNDUHDHJLQWKHHYHQWRIDQDFFLGHQWRUZKHQEUDNLQJ#$OZD\VGULYHZLWKWKHKHDGUHVWUDLQWVILWWHG#%HIRUHGULYLQJRIIPDNHVXUHIRUHYHU\YHKLFOHRFFXSDQWWKDWWKHFHQWUHRIWKHKHDGUHVWUDLQWVXSSRUWVWKHEDFNRIWKHKHDGDWDERXWH\HOHYHO'RQRWLQWHUFKDQJHWKHKHDGUHVWUDLQWVRIWKHIURQWDQGUHDUVHDWV2WKHUZLVH\RXFDQQRWDGMXVWWKHKHLJKWDQGDQJOHRIWKHKHDGUHVWUDLQWVFRUUHFWO\$GMXVWWKHKHDGUHVWUDLQWIRUHDQGDIWSRVLWLRQVRWKDWLWLVDVFORVHDVSRVVLEOHWRWKHEDFNRI\RXUKHDG&:$51,1*5LVNRILQMXU\RUGHDWKGXHWRLQFRUUHFWVHDWSRVLWLRQ7KHVHDWEHOWGRHVQRWRIIHUWKHLQWHQGHGOHYHORISURWHFWLRQLI\RXKDYHQRWPRYHGWKHVHDWEDFNUHVWWRDQDOPRVWYHUWLFDOSRVLWLRQ:KHQEUDNLQJRULQWKHHYHQWRIDQDFFLGHQW\RXFRXOGVOLGHXQGHUQHDWKWKHVHDWEHOWDQGVXVWDLQDEGRPLQDORUQHFNLQMXULHVIRUH[DPƃSOH#$GMXVWWKHVHDWSURSHUO\EHIRUHEHJLQƃQLQJ\RXUMRXUQH\#$OZD\VHQVXUHWKDWWKHVHDWEDFNUHVWLVLQDQDOPRVWYHUWLFDOSRVLWLRQDQGWKDWWKHVKRXOGHUVHFWLRQRI\RXUVHDWEHOWLVURXWHGDFURVVWKHFHQWUHRI\RXUVKRXOƃGHU6HDWIRUHDQGDIWSRVLWLRQ6HDWKHLJKW6HDWEDFNUHVWLQFOLQDWLRQ#7RDGMXVWWKHVHDWIRUHDQGDIWSRVLWLRQOLIWOHYHUDQGVOLGHWKHVHDWLQWRWKHGHVLUHGSRVLWLRQ#0DNHVXUHWKDWWKHVHDWLVHQJDJHG 6HDWVDQGVWRZLQJ$

$#7RDGMXVWWKHVHDWKHLJKWWXUQRUSXVKOHYHUXQWLOWKHGHVLUHGSRVLWLRQKDVEHHQUHDFKHG#7RDGMXVWWKHVHDWEDFNUHVWLQFOLQDWLRQWXUQKDQGZKHHOIRUZDUGVDQGEDFNZDUGVXQWLOWKHGHVLUHGSRVLWLRQKDVEHHQUHDFKHG$GMXVWLQJWKHIURQWVHDWPHFKDQLFDOO\ZLWK6HDW&RPIRUW3DFNDJH6HDWFXVKLRQOHQJWK6HDWIRUHDQGDIWSRVLWLRQ6HDWFXVKLRQLQFOLQDWLRQ6HDWKHLJKW6HDWEDFNUHVWLQFOLQDWLRQ#7RDGMXVWWKHVHDWFXVKLRQOHQJWKOLIWOHYHUDQGVOLGHWKHIURQWVHFWLRQRIWKHVHDWFXVKLRQIRUZDUGVRUEDFNZDUGV#7RDGMXVWWKHVHDWIRUHDQGDIWSRVLWLRQOLIWOHYHUDQGVOLGHWKHVHDWLQWRWKHGHVLUHGSRVLWLRQ#0DNHVXUHWKDWWKHVHDWLVHQJDJHG#7RDGMXVWWKHVHDWFXVKLRQLQFOLQDWLRQWXUQKDQGZKHHOIRUZDUGVDQGEDFNZDUGVXQWLOWKHGHVLUHGSRVLWLRQKDVEHHQUHDFKHG#7RDGMXVWWKHVHDWKHLJKWWXUQRUSXVKOHYHUXQWLOWKHGHVLUHGSRVLWLRQKDVEHHQUHDFKHG#7RDGMXVWWKHVHDWEDFNUHVWLQFOLQDWLRQWXUQKDQGZKHHOIRUZDUGVDQGEDFNZDUGVXQWLOWKHGHVLUHGSRVLWLRQKDVEHHQUHDFKHG6HDWVDQGVWRZLQJ $

$$GMXVWLQJWKHIURQWVHDWHOHFWULFDOO\6HDWEDFNUHVWLQFOLQDWLRQ6HDWKHLJKW6HDWFXVKLRQLQFOLQDWLRQ6HDWIRUHDQGDIWSRVLWLRQ#6DYHWKHVHWWLQJVZLWKWKHPHPRU\IXQFWLRQĺSDJH$GMXVWLQJWKHZD\OXPEDUVXSSRUW7RUDLVH7RVRIWHQ7RORZHU7RKDUGHQ#8VLQJEXWWRQVWRDGMXVWWKHFRQWRXURIWKHEDFNUHVWLQGLYLGXDOO\WRVXLW\RXUEDFN+HDGUHVWUDLQWV$GMXVWLQJWKHIURQWVHDWKHDGUHVWUDLQWVPHFKDQLFDOO\&:$51,1*5LVNRILQMXU\WKURXJKDGMXVWƃLQJYHKLFOHVHWWLQJVZKLOHWKHYHKLFOHLVLQPRWLRQ<RXFRXOGORVHFRQWURORIWKHYHKLFOHLQWKHIROORZLQJVLWXDWLRQV=LI\RXDGMXVWWKHGULYHUVVHDWWKHKHDGUHVWUDLQWVWKHVWHHULQJZKHHORUWKHPLUƃURUZKLOHWKHYHKLFOHLVLQPRWLRQ=LI\RXIDVWHQ\RXUVHDWEHOWZKLOHWKHYHKLƃFOHLVLQPRWLRQ#%HIRUHVWDUWLQJWKHHQJLQHDGMXVWWKHGULYHUVVHDWWKHKHDGUHVWUDLQWVWKHVWHHULQJZKHHORUWKHPLUURUDQGIDVWHQ\RXUVHDWEHOW 6HDWVDQGVWRZLQJ$

$&:$51,1*5LVNRILQMXU\GXHWRKHDGUHVWUDLQWVZKLFKDUHQRWILWWHGRUDUHDGMXVWHGLQFRUUHFWO\,IKHDGUHVWUDLQWVDUHQRWILWWHGRUDUHDGMXVƃWHGLQFRUUHFWO\WKH\FDQQRWSURYLGHSURWHFƃWLRQDVLQWHQGHG7KHUHLVDQLQFUHDVHGULVNRILQMXU\LQWKHKHDGDQGQHFNDUHDHJLQWKHHYHQWRIDQDFFLGHQWRUZKHQEUDNLQJ#$OZD\VGULYHZLWKWKHKHDGUHVWUDLQWVILWWHG#%HIRUHGULYLQJRIIPDNHVXUHIRUHYHU\YHKLFOHRFFXSDQWWKDWWKHFHQWUHRIWKHKHDGUHVWUDLQWVXSSRUWVWKHEDFNRIWKHKHDGDWDERXWH\HOHYHO'RQRWLQWHUFKDQJHWKHKHDGUHVWUDLQWVRIWKHIURQWDQGUHDUVHDWV2WKHUZLVH\RXFDQQRWDGMXVWWKHKHLJKWDQGDQJOHRIWKHKHDGUHVWUDLQWVFRUUHFWO\$GMXVWWKHKHDGUHVWUDLQWIRUHDQGDIWSRVLWLRQVRWKDWLWLVDVFORVHDVSRVVLEOHWRWKHEDFNRI\RXUKHDG#7RUDLVHSUHVVUHOHDVHNQREDQGSXOOWKHKHDGUHVWUDLQWXS#7RORZHUSUHVVUHOHDVHNQRELQWKHGLUHFƃWLRQRIWKHDUURZDQGSXVKWKHKHDGUHVWUDLQWGRZQ#7RPRYHIRUZDUGVSUHVVUHOHDVHNQREDQGSXOOWKHKHDGUHVWUDLQWIRUZDUGV#7RPRYHEDFNZDUGVSUHVVUHOHDVHNQREDQGSXVKWKHKHDGUHVWUDLQWEDFNZDUGV$GMXVWLQJWKHKHDGUHVWUDLQWVRIWKHUHDUVHDWVPHFKDQLFDOO\#7RUDLVHSXOOWKHKHDGUHVWUDLQWXS#7RORZHUSUHVVUHOHDVHNQRELQWKHGLUHFƃWLRQRIWKHDUURZDQGSXVKWKHKHDGUHVWUDLQWGRZQ6HDWVDQGVWRZLQJ $

$)LWWLQJUHPRYLQJWKHUHDUVHDWKHDGUHVWUDLQWV5HPRYLQJ#5HOHDVHWKHUHDUVHDWEDFNUHVWDQGIROGLWVOLJKWO\IRUZDUGVĺSDJH#3XOOWKHKHDGUHVWUDLQWXSZDUGVDVIDUDVLWZLOOJR#3XVKUHOHDVHNQRELQWKHGLUHFWLRQRIWKHDUURZDQGSXOORXWWKHKHDGUHVWUDLQW)LWWLQJ#,QVHUWWKHKHDGUHVWUDLQWVXFKWKDWWKHQRWFKHVRQWKHEDUDUHRQWKHOHIWZKHQYLHZHGLQWKHGLUHFWLRQRIWUDYHO#3XVKWKHKHDGUHVWUDLQWGRZQXQWLO\RXKHDULWHQJDJHLQSRVLWLRQ#)ROGWKHUHDUVHDWEDFNUHVWEDFNXQWLOLWHQJDJHV&RQILJXULQJWKHVHDWVHWWLQJV0XOWLPHGLDV\VWHP,.&RPIRUW.6HDWFRPIRUW#6HOHFWDVHDW$GMXVWLQJWKHEDFNUHVWVLGHEROVWHUV#6HOHFW6LGHEROVWHUV#$GMXVWWKHDLUFXVKLRQV$GMXVWLQJWKHVHDWFRQWRXULQWKHOXPEDUUHJLRQRIWKHVHDWEDFNUHVWOXPEDU#6HOHFW/XPEDU#$GMXVWWKHDLUFXVKLRQV6HOHFWLQJWKHPDVVDJHSURJUDPIRUWKHIURQWVHDWV0XOWLPHGLDV\VWHP,.&RPIRUW.0DVVDJH#6HOHFWDVHDW#6HOHFW:DYH0DVVDJHRU3XOVDWLQJ0DVVDJH7KHVHOHFWHGSURJUDPVWDUWV#7RVHWWKHPDVVDJHLQWHQVLW\VZLWFK+LJKLQWHQVLW\RQRURII5HVHWWLQJWKHVHDWDQGPDVVDJHVHWWLQJV0XOWLPHGLDV\VWHP,.&RPIRUW.6HDWFRPIRUW.5HVHW#6HOHFW<HVRU1R 6HDWVDQGVWRZLQJ$

$%2QO\WKHVHWWLQJVIRUWKHVHOHFWHGVHDWDUHUHVHW6HWWLQJ(1(5*,=,1*VHDWNLQHWLFV5HTXLUHPHQWV=7KHVHIXQFWLRQVDUHDYDLODEOHRQO\IRUIXOO\HOHFWULFDOVHDWVZLWKDPHPRU\IXQFWLRQ0XOWLPHGLDV\VWHP,.&RPIRUW.6HDWFRPIRUW.6HDWNLQHWLFV(1(5*,=,1*VHDWNLQHWLFVVXSSRUWVEDFNKHDOWKE\FKDQJLQJWKHVHDWSRVLWLRQGXULQJGULYLQJ7KHPXVFOHVDQGMRLQWVDUHVWUHVVHGDQGUHOLHYHGDJDLQDQGDJDLQE\PHDQVRIPLQRUPRYHPHQWVRIWKHFXVKLRQDQGEDFNUHVW'HSHQGLQJRQWKHSODQQHGGULYLQJWLPHWKUHHGLIIHUHQWSURJUDPVDUHDYDLODEOHIRUVHOHFWLRQ7KHIROORZLQJSURJUDPVDUHDYDLODEOH=6KRUWMRXUQH\PLQXWHV=0HGLXPGLVWMRXUQH\PLQXWHV=/RQJGLVWDQFHMRXUQH\PLQXWHV#6HOHFWDSURJUDP7KHVHOHFWHGSURJUDPVWDUWV&RQILJXULQJDSURJUDP#6HOHFW6HWWLQJV#6HOHFW%DFNUVHDWVXUIDFH%DFNUHVWRU6HDWVXUIDFH#9HKLFOHVZLWKDPXOWLFRQWRXUVHDWVZLWFK,QFOXGLQJOXPEDURQRURII6ZLWFKLQJWKHVHDWKHDWHURQRII&:$51,1*5LVNRIEXUQVGXHWRUHSHDWƃHGO\VZLWFKLQJRQWKHVHDWKHDWHU5HSHDWHGO\VZLWFKLQJRQWKHVHDWKHDWHUFDQFDXVHWKHVHDWFXVKLRQDQGVHDWEDFNUHVWSDGGLQJWREHFRPHYHU\KRW7KHKHDOWKRISHUVRQVZLWKOLPLWHGWHPSHUDƃWXUHVHQVLWLYLW\RUDOLPLWHGDELOLW\WRUHDFWWRH[FHVVLYHO\KLJKWHPSHUDWXUHVPD\EHDIIHFƃWHGRUWKH\PD\HYHQVXIIHUEXUQOLNHLQMXULHV#'RQRWUHSHDWHGO\VZLWFKRQWKHVHDWKHDWHU*127('DPDJHWRWKHVHDWVFDXVHGE\REMHFWVRUGRFXPHQWVZKHQWKHVHDWKHDWHULVVZLWFKHGRQ:KHQWKHVHDWKHDWHULVVZLWFKHGRQRYHUƃKHDWLQJFDQRFFXUGXHWRREMHFWVRUGRFXƃPHQWVSODFHGRQWKHVHDWVHJVHDWFXVKLRQVRUFKLOGVHDWV7KLVFRXOGFDXVHGDPDJHWRWKHVHDWVXUIDFH#0DNHVXUHWKDWQRREMHFWVRUGRFXƃPHQWVDUHRQWKHVHDWVZKHQWKHVHDWKHDWHULVVZLWFKHGRQ5HTXLUHPHQWV=7KHSRZHUVXSSO\LVVZLWFKHGRQ6HDWVDQGVWRZLQJ $

$#7RVZLWFKRQSUHVVEXWWRQ$OOLQGLFDWRUODPSVDUHRQ#7RUHGXFHWKHOHYHOSUHVVEXWWRQUHSHDWHGO\XQWLOWKHGHVLUHGKHDWLQJOHYHOLVVHW'HSHQGLQJRQWKHKHDWLQJOHYHOXSWRWKUHHLQGLFDWRUODPSVOLJKWXS#7RVZLWFKRIISUHVVEXWWRQUHSHDWHGO\XQWLODOOWKHLQGLFDWRUODPSVJRRXW%7KHVHDWKHDWHUDXWRPDWLFDOO\VZLWFKHVGRZQIURPWKHWKUHHKHDWLQJOHYHOVDIWHUDQGPLQXWHVXQWLOWKHVHDWKHDWHULVVZLWFKHGRII6ZLWFKLQJWKHVHDWYHQWLODWLRQRQRII5HTXLUHPHQWV=7KHSRZHUVXSSO\LVVZLWFKHGRQ#7RVZLWFKRQSUHVVEXWWRQ$OOLQGLFDWRUODPSVDUHRQ#7RUHGXFHWKHOHYHOSUHVVEXWWRQUHSHDWHGO\XQWLOWKHGHVLUHGYHQWLODWLRQOHYHOLVVHW'HSHQGLQJRQWKHYHQWLODWLRQOHYHOXSWRWKUHHLQGLFDWRUODPSVOLJKWXS#7RVZLWFKRIISUHVVEXWWRQUHSHDWHGO\XQWLODOOWKHLQGLFDWRUODPSVJRRXW6WHHULQJZKHHO$GMXVWLQJWKHVWHHULQJZKHHOPDQXDOO\&:$51,1*5LVNRILQMXU\WKURXJKDGMXVWƃLQJYHKLFOHVHWWLQJVZKLOHWKHYHKLFOHLVLQPRWLRQ<RXFRXOGORVHFRQWURORIWKHYHKLFOHLQWKHIROORZLQJVLWXDWLRQV=LI\RXDGMXVWWKHGULYHUVVHDWWKHKHDGUHVWUDLQWVWKHVWHHULQJZKHHORUWKHPLUƃURUZKLOHWKHYHKLFOHLVLQPRWLRQ 6HDWVDQGVWRZLQJ$

$=LI\RXIDVWHQ\RXUVHDWEHOWZKLOHWKHYHKLƃFOHLVLQPRWLRQ#%HIRUHVWDUWLQJWKHHQJLQHDGMXVWWKHGULYHUVVHDWWKHKHDGUHVWUDLQWVWKHVWHHULQJZKHHORUWKHPLUURUDQGIDVWHQ\RXUVHDWEHOW&:$51,1*5LVNRIHQWUDSPHQWIRUFKLOƃGUHQZKHQDGMXVWLQJWKHVWHHULQJZKHHO&KLOGUHQFRXOGLQMXUHWKHPVHOYHVLIWKH\DGMXVWWKHVWHHULQJZKHHO#1HYHUOHDYHFKLOGUHQXQDWWHQGHGLQWKHYHKLFOH#:KHQOHDYLQJWKHYHKLFOHDOZD\VWDNHWKHNH\ZLWK\RXDQGORFNWKHYHKLFOH7KLVDOVRDSSOLHVWRWKH'LJLWDO9HKLFOH.H\VWLFNHUDQGPRELOHSKRQHVLIWKH'LJLWDO9HKLFOH.H\LQWKHVPDUWSKRQHIXQFWLRQLVDFWLYDWHGYLDWKH0HUFHGHVPHFRQQHFWZHEDSS#3XVKUHOHDVHOHYHUGRZQDVIDUDVLWZLOOJR7KHVWHHULQJFROXPQLVXQORFNHG#$GMXVWKHLJKWDQGGLVWDQFHWRWKHVWHHULQJZKHHO#3XVKUHOHDVHOHYHUXSDVIDUDVLWZLOOJR7KHVWHHULQJFROXPQLVORFNHG#&KHFNDQGPDNHVXUHWKDWWKHVWHHULQJFROƃXPQLVORFNHGE\PRYLQJWKHVWHHULQJZKHHO6ZLWFKLQJWKHVWHHULQJZKHHOKHDWHURQRII=7KHLJQLWLRQLVVZLWFKHGRQ#7RVZLWFKRQSXVKWKHVZLWFKWRSRVLWLRQ7KHLQGLFDWRUODPSOLJKWVXS#7RVZLWFKRIISXVKWKHVZLWFKWRSRVLWLRQ7KHLQGLFDWRUODPSJRHVRXW6HDWVDQGVWRZLQJ $

$:KHQ\RXVZLWFKWKHLJQLWLRQRIIWKHVWHHULQJZKHHOKHDWHUVZLWFKHVRII(DV\HQWU\DQGH[LWIHDWXUH)XQFWLRQRIWKHHDV\HQWU\DQGH[LWIHDWXUH&:$51,1*5LVNRIDFFLGHQWZKHQSXOOLQJDZD\GXULQJWKHDGMXVWPHQWSURFHVVRIWKHHDV\H[LWIHDWXUHƄ,I\RXSXOODZD\ZKLOHWKHHDV\HQWU\DQGH[LWIHDWXUHLVPDNLQJDGMXVWPHQWV\RXFRXOGORVHFRQWURORIWKHYHKLFOH#$OZD\VZDLWXQWLOWKHDGMXVWPHQWSURFƃHVVLVFRPSOHWHEHIRUHSXOOLQJDZD\&:$51,1*5LVNRIEHFRPLQJWUDSSHGZKLOHDGMXVWLQJWKHHDV\HQWU\DQGH[LWIHDWXUH:KHQWKHHDV\HQWU\DQGH[LWIHDWXUHDGMXVWVWKHGULYHUVVHDW\RXDQGRWKHUYHKLFOHRFFXƃSDQWV²SDUWLFXODUO\FKLOGUHQ²FRXOGEHFRPHWUDSSHG#'XULQJWKHDGMXVWPHQWSURFHVVRIWKHHDV\HQWU\DQGH[LWIHDWXUHPDNHVXUHWKDWQRRQHKDVDQ\ERG\SDUWVLQWKHVZHHSRIWKHGULYHUVVHDW,IWKHUHLVDULVNRIEHFRPLQJWUDSSHGE\WKHGULYHUVVHDW#3UHVVWKHVHDWDGMXVWPHQWVZLWFK7KHDGMXVWPHQWSURFHVVLVVWRSSHG#1HYHUOHDYHFKLOGUHQXQDWWHQGHGLQWKHYHKLFOH#:KHQOHDYLQJWKHYHKLFOHDOZD\VWDNHWKHNH\ZLWK\RXDQGORFNWKHYHKLFOH7KLVDOVRDSSOLHVWRWKH'LJLWDO&DU.H\VWLFNHUDQGPRELOHSKRQHVLIWKH'LJLWDO&DU.H\RQVPDUWSKRQHIXQFWLRQLVDFWLYDWHGYLDWKH0HUFHGHVPHFRQQHFWZHEDSS<RXFDQVWRSWKHDGMXVWPHQWSURFHVVE\SUHVVƃLQJRQHRIWKHPHPRU\SRVLWLRQVZLWFKHVRIWKHPHPRU\IXQFWLRQ&:$51,1*5LVNRIEHFRPLQJWUDSSHGGXULQJDFWLYDWLRQRIWKHHDV\HQWU\DQGH[LWIHDWXUHE\FKLOGUHQ,IFKLOGUHQDFWLYDWHWKHHDV\HQWU\DQGH[LWIHDWXUHWKH\FDQEHFRPHWUDSSHGSDUWLFXƃODUO\ZKHQXQDWWHQGHG#1HYHUOHDYHFKLOGUHQXQDWWHQGHGLQWKHYHKLFOH#:KHQOHDYLQJWKHYHKLFOHDOZD\VWDNHWKHNH\ZLWK\RXDQGORFNWKHYHKLFOH:KHQWKHHDV\HQWU\DQGH[LWIHDWXUHLVDFWLYHWKHGULYHUVVHDWPRYHVEDFNZDUGVZKHQ=\RXVZLWFKWKHLJQLWLRQRIIZKHQWKHGULYHUVGRRULVRSHQ=\RXRSHQWKHGULYHUVGRRUZKHQWKHLJQLWLRQLVVZLWFKHGRII%7KHGULYHUVVHDWPRYHVEDFNZDUGVRQO\LILWLVQRWDOUHDG\LQWKHUHDUPRVWSRVLWLRQ 6HDWVDQGVWRZLQJ$

$7KHGULYHUVVHDWPRYHVEDFNWRWKHODVWGULYHSRVLWLRQLQWKHIROORZLQJFDVHV=\RXVZLWFKWKHLJQLWLRQRQZKHQWKHGULYHUVGRRULVFORVHG=\RXFORVHWKHGULYHUVGRRUZKHQWKHLJQLWLRQLVVZLWFKHGRQ7KHODVWGULYHSRVLWLRQLVVWRUHGLQWKHIROORZLQJVLWXDWLRQV=\RXVZLWFKWKHLJQLWLRQRII=\RXFDOOXSWKHVHDWVHWWLQJVYLDWKHPHPRU\IXQFWLRQ=\RXVDYHWKHVHDWVHWWLQJXVLQJWKHPHPRU\IXQFWLRQ6HWWLQJWKHHDV\HQWU\DQGH[LWIHDWXUH0XOWLPHGLDV\VWHP,.6HWWLQJV.)DKU]HXJ9HKLƃFOH .(DV\(QWU\([LW#$FWLYDWHRUGHDFWLYDWHWKHIXQFWLRQ8VLQJWKHPHPRU\IXQFWLRQ&:$51,1*5LVNRIDQDFFLGHQWLIPHPRU\IXQFWLRQLVXVHGZKLOHGULYLQJ,I\RXXVHWKHPHPRU\IXQFWLRQRQWKHGULYƃHUVVLGHZKLOHGULYLQJ\RXFRXOGORVHFRQWURORIWKHYHKLFOHDVDUHVXOWRIWKHDGMXVWPHQWVEHLQJPDGH#2QO\XVHWKHPHPRU\IXQFWLRQRQWKHGULYHUVVLGHZKHQWKHYHKLFOHLVVWDWLRQƃDU\&:$51,1*5LVNRIHQWUDSPHQWZKHQVHWƃWLQJWKHVHDWZLWKWKHPHPRU\IXQFWLRQ:KHQWKHPHPRU\IXQFWLRQDGMXVWVWKHVHDW\RXDQGRWKHUYHKLFOHRFFXSDQWV²SDUWLFXƃODUO\FKLOGUHQ²FRXOGEHFRPHWUDSSHG#'XULQJWKHDGMXVWPHQWSURFHVVRIWKHPHPRU\IXQFWLRQPDNHVXUHWKDWQRRQHKDVDQ\ERG\SDUWVLQWKHVZHHSRIWKHVHDW#,IVRPHRQHEHFRPHVWUDSSHGLPPHGLƃDWHO\SUHVVWKHSRVLWLRQEXWWRQRUVHDWDGMXVWPHQWVZLWFK&:$51,1*5LVNRIHQWUDSPHQWLIWKHPHPRU\IXQFWLRQLVDFWLYDWHGE\FKLOGUHQ&KLOGUHQFRXOGEHFRPHWUDSSHGLIWKH\DFWLƃYDWHWKHPHPRU\IXQFWLRQSDUWLFXODUO\ZKHQXQDWWHQGHG#1HYHUOHDYHFKLOGUHQXQDWWHQGHGLQWKHYHKLFOH#:KHQOHDYLQJWKHYHKLFOHDOZD\VWDNHWKHNH\ZLWK\RXDQGORFNWKHYHKLFOH7KLVDOVRDSSOLHVWRWKH'LJLWDO&DU.H\VWLFNHUDQGPRELOHSKRQHVLIWKH'LJLWDO&DU.H\LQWKHVPDUWSKRQHIXQFWLRQLVDFWLYDWHGYLDWKH0HUFHGHVPHFRQQHFWZHEDSS7KHPHPRU\IXQFWLRQFDQEHXVHGZKHQWKHLJQLƃWLRQLVVZLWFKHGRII6HDWDGMXVWPHQWVIRUXSWRWKUHHSHRSOHFDQEHVWRUHGDQGFDOOHGXSXVLQJWKHPHPRU\IXQFWLRQ6HDWVDQGVWRZLQJ $

$7KHIROORZLQJV\VWHPVFDQEHVHOHFWHG=6HDW=6HDWFRQWRXU=2XWVLGHPLUURUV=+HDGXSGLVSOD\#7RVWRUHVHWWKHVHDWVHDWFRQWRXUWKHKHDGXSGLVSOD\DQGWKHRXWVLGHPLUURUWRWKHGHVLUHGSRVLWLRQ#3UHVVPHPRU\EXWWRQ0DQGWKHQSUHVVSUHƃVHWSRVLWLRQEXWWRQRUZLWKLQWKUHHVHFƃRQGV#7RFDOOXSSUHVVDQGEULHIO\KROGSUHVHWSRVLƃWLRQEXWWRQRU$IWHUUHOHDVLQJWKHEXWWRQWKHIURQWVHDWKHDGXSGLVSOD\RXWVLGHPLUURUDQGVHDWFRQƃWRXUDUHPRYHGLQWRWKHVWRUHGSRVLWLRQDXWRƃPDWLFDOO\6WRZDJHDUHDV1RWHVRQORDGLQJWKHYHKLFOH&:$51,1*5LVNRIH[KDXVWJDVSRLVRQLQJ&RPEXVWLRQHQJLQHVHPLWSRLVRQRXVH[KDXVWJDVHVVXFKDVFDUERQPRQR[LGH([KDXVWJDVHVFDQHQWHUWKHYHKLFOHLQWHULRULIWKHERRWOLGLVRSHQZKHQWKHHQJLQHLVUXQQLQJHVSHFLDOO\LIWKHYHKLFOHLVLQPRWLRQ#$OZD\VVZLWFKRIIWKHHQJLQHEHIRUHRSHQLQJWKHERRWOLG#1HYHUGULYHZLWKWKHERRWOLGRSHQ&:$51,1*5LVNRILQMXU\IURPXQVHFXUHGLWHPVLQWKHYHKLFOH,IREMHFWVOXJJDJHRUORDGVDUHQRWVHFXUHGRUQRWVHFXUHGVXIILFLHQWO\WKH\FRXOGVOLSWLSRYHURUEHWKURZQDURXQGDQGWKHUHE\KLWYHKLFOHRFFXSDQWV7KHUHLVDULVNRILQMXU\SDUWLFXODUO\LQWKHHYHQWRIVXGGHQEUDNLQJRUDVXGGHQFKDQJHLQGLUHFWLRQ#$OZD\VVWRZREMHFWVLQVXFKDZD\WKDWWKH\FDQQRWEHWKURZQDURXQG#%HIRUHWKHMRXUQH\VHFXUHREMHFWVOXJƃJDJHRUORDGVDJDLQVWVOLSSLQJRUWLSSLQJRYHU 6HDWVDQGVWRZLQJ$

$&:$51,1*5LVNRILQMXU\IURPLQFRUUHFWO\VWRZHGREMHFWV,IREMHFWVLQWKHSDVVHQJHUFRPSDUWPHQWDUHVWRZHGLQFRUUHFWO\WKH\FDQVOLGHRUEHWKURZQDURXQGDQGKLWYHKLFOHRFFXSDQWV,QDGGLWLRQFXSKROGHUVRSHQVWRZDJHVSDFHVDQGPRELOHSKRQHEUDFNHWVFDQQRWDOZD\VUHWDLQDOOREMHFWVWKH\FRQWDLQ7KHUHLVDULVNRILQMXU\SDUWLFXODUO\LQWKHHYHQWRIVXGGHQEUDNLQJRUDVXGGHQFKDQJHLQGLUHFWLRQ#$OZD\VVWRZREMHFWVVRWKDWWKH\FDQƃQRWEHWKURZQDURXQGLQVXFKVLWXDƃWLRQV#$OZD\VPDNHVXUHWKDWREMHFWVGRQRWSURWUXGHIURPVWRZDJHVSDFHVOXJJDJHQHWVRUVWRZDJHQHWV#&ORVHWKHORFNDEOHVWRZDJHVSDFHVEHIRUHVWDUWLQJDMRXUQH\#$OZD\VVWRZDQGVHFXUHKHDY\KDUGSRLQWHGVKDUSHGJHGIUDJLOHRUEXON\REMHFWVLQWKHERRW&:$51,1*5LVNRIEXUQVIURPWDLOSLSHVDQGWDLOSLSHWULP7KHWDLOSLSHDQGWDLOSLSHWULPFDQEHFRPHYHU\KRW,I\RXFRPHLQWRFRQWDFWZLWKWKHVHSDUWVRIWKHYHKLFOH\RXFRXOGEXUQ\RXUVHOI#$OZD\VEHSDUWLFXODUO\FDUHIXODURXQGWKHWDLOSLSHDQGWKHWDLOSLSHWULP#$OORZWKHYHKLFOHSDUWVWRFRROGRZQEHIRUH\RXWRXFKWKHP7KHKDQGOLQJFKDUDFWHULVWLFVRI\RXUYHKLFOHDUHGHSHQGHQWRQWKHGLVWULEXWLRQRIWKHORDGZLWKLQWKHYHKLFOH<RXVKRXOGEHDUWKHIROORZLQJLQPLQGZKHQORDGLQJWKHYHKLFOH=QHYHUH[FHHGWKHPD[LPXPJURVVYHKLFOHZHLJKWRUWKHSHUPLVVLEOHD[OHORDGVIRUWKHYHKLFOHLQFOXGLQJRFFXSDQWV=WKHORDGPXVWQRWSURWUXGHDERYHWKHXSSHUHGJHRIWKHVHDWEDFNUHVWV=DOZD\VSODFHWKHORDGEHKLQGXQRFFXSLHGVHDWVLISRVVLEOH=VHFXUHWKHORDGXVLQJWKHWLHGRZQH\HVDQGGLVWULEXWHWKHORDGHYHQO\6WRZDJHVSDFHVLQWKHYHKLFOHLQWHULRU2YHUYLHZRIWKHIURQWVWRZDJHFRPSDUWƃPHQWV6WRZDJHFRPSDUWPHQWLQWKHGRRUV6WRZDJHFRPSDUWPHQWLQWKHDUPUHVWZLWKDPXOWLPHGLDDQG86%FRQQHFWLRQ6WRZDJHFRPSDUWPHQWLQWKHIURQWFHQWUHFRQVROHZLWKD86%FRQQHFWLRQDQGFKDUJLQJPRGXOHIRUZLUHOHVVFKDUJLQJRIPRELOHSKRQHV*ORYHER[6HDWVDQGVWRZLQJ $

$/RFNLQJRUXQORFNLQJWKHJORYHER[#7XUQWKHHPHUJHQF\NH\DTXDUWHUWXUQFORFNƃZLVHHWRORFNRUDQWLFORFNZLVHGWRXQORFN6WRZDJHFRPSDUWPHQWIRUFXVWRPHUOLWHUDƃWXUH#7RRSHQWXUQWKHKDQGOHWRWKHOHIWRUULJKW2SHQLQJWKHVSHFWDFOHVFRPSDUWPHQW#3UHVVEXWWRQ 6HDWVDQGVWRZLQJ$

$7KURXJKORDGLQJIHDWXUHLQWKHUHDUEHQFKVHDW)ROGLQJWKHUHDUVHDWEDFNUHVWIRUZDUGV&:$51,1*5LVNRILQMXU\LIWKHUHDUEHQFKVHDWUHDUVHDWDQGVHDWEDFNUHVWDUHQRWHQJDJHG,IWKHUHDUEHQFKVHDWUHDUVHDWDQGVHDWEDFNUHVWDUHQRWHQJDJHGWKH\FRXOGIROGIRUƃZDUGVHJZKHQEUDNLQJVXGGHQO\RULQWKHHYHQWRIDQDFFLGHQW=,IWKLVLVWKHFDVHWKHYHKLFOHRFFXSDQWZRXOGEHIRUFHGLQWRWKHVHDWEHOWE\WKHUHDUEHQFKVHDWUHDUVHDWRUE\WKHVHDWEDFNUHVW7KHVHDWEHOWFDQQRWSURWHFWDVLQWHQGHGDQGFRXOGUHVXOWLQDGGLWLRQDOLQMXU\=2EMHFWVRUORDGVLQWKHERRWORDGFRPƃSDUWPHQWFDQQRWEHUHVWUDLQHGE\WKHVHDWEDFNUHVW#0DNHVXUHWKDWWKHVHDWEDFNUHVWDQGWKHUHDUEHQFKVHDWUHDUVHDWDUHHQJDJHGEHIRUHHYHU\WULS5HTXLUHPHQWV=7KHFHQWUHVHDWEDFNUHVWKDVEHHQXQORFNHG7KHFHQWUHDQGRXWHUVHDWEDFNUHVWVFDQEHIROƃGHGIRUZDUGV#/HIWDQGULJKWVHDWEDFNUHVWLIQHFHVVDU\IXOO\LQVHUWWKHVHDWEDFNUHVWKHDGUHVWUDLQWVĺSDJH#3XOORQUHOHDVHOHYHU(QVXUHWKDWWKHFHQWUHVHDWEDFNUHVWLVQRWORFNHG#&HQWUHVHDWEDFNUHVWSXOOUHOHDVHFDWFKRIVHDWEDFNUHVWIRUZDUGV#)ROGWKHFRUUHVSRQGLQJVHDWEDFNUHVWIRUƃZDUGV6HDWVDQGVWRZLQJ $

$)ROGLQJWKHUHDUVHDWEDFNUHVWEDFN*127('DPDJHWRWKHVHDWEHOW7KHVHDWEHOWFRXOGEHFRPHWUDSSHGDQGWKXVGDPDJHGZKHQIROGLQJEDFNWKHVHDWEDFNƃUHVW#0DNHVXUHWKDWWKHVHDWEHOWLVQRWWUDSƃSHGZKHQIROGLQJEDFNWKHVHDWEDFNƃUHVW#0RYHWKHGULYHUVRUIURQWSDVVHQJHUVHDWIRUƃZDUGVLIQHFHVVDU\#)ROGFRUUHVSRQGLQJVHDWEDFNUHVWEDFNXQWLOLWHQJDJHV/HIWDQGULJKWVHDWEDFNUHVWLIWKHVHDWEDFNUHVWLVQRWHQJDJHGDQGORFNHGUHGORFNYHULILFDWLRQLQGLFDWRUZLOOEHYLVLEOH&HQWUHVHDWEDFNUHVWLIWKHVHDWEDFNUHVWLVQRWHQJDJHGDQGORFNHGUHGORFNYHULILFDWLRQLQGLFDWRUZLOOEHYLVLEOH%ORFNLQJWKHUHOHDVHFDWFKRIWKHFHQWUHUHDUVHDWEDFNUHVW5HTXLUHPHQWV=7KHOHIWDQGFHQWUHVHDWEDFNUHVWDUHHQJDJHGDQGMRLQHGWRJHWKHU<RXFDQORFNWKHFHQWUHVHDWEDFNUHVW7KHFHQWUHVHDWEDFNUHVWFDQWKHQRQO\EHIROGHGIRUƃZDUGVWRJHWKHUZLWKWKHOHIWVHDWEDFNUHVW 6HDWVDQGVWRZLQJ$

$#)ROGWKHFHQWUHDQGOHIWVHDWEDFNUHVWIRUƃZDUGV#7RORFNVOLGHFDWFKXSZDUGV7KHUHOHDVHPHFKDQLVPRIWKHFHQWUHVHDWEDFNUHVWLVORFNHG#7RXQORFNVOLGHFDWFKGRZQZDUGV/RDGFRPSDUWPHQWFRYHU)LWWLQJDQGUHPRYLQJWKHORDGFRPSDUWPHQWFRYHU&:$51,1*5LVNRILQMXU\RUGHDWKGXHWRREMHFWVEHLQJSRRUO\VHFXUHG2QLWVRZQWKHORDGFRPSDUWPHQWFRYHUFDQƃQRWVHFXUHRUUHVWUDLQKHDY\REMHFWVLWHPVRIOXJJDJHDQGKHDY\ORDGV<RXFRXOGEHKLWE\DQXQVHFXUHGORDGGXULQJVXGGHQFKDQJHVLQGLUHFWLRQEUDNLQJRULQWKHHYHQWRIDQDFFLGHQW#$OZD\VVWRZREMHFWVLQVXFKDZD\WKDWWKH\FDQQRWEHWKURZQDURXQG#6HFXUHREMHFWVOXJJDJHRUORDGVDJDLQVWVOLSSLQJRUWLSSLQJRYHUHJE\XVLQJODVKLQJPDWHULDOHYHQLI\RXDUHXVLQJWKHORDGFRPSDUWPHQWFRYHU'RQRWORDGWKHORDGFRPSDUWPHQWFRYHUZLWKPRUHWKDQNJ#7RUHPRYHSXOOWKHKDQJLQJFOLSVRQWKHWDLOJDWHGRZQZDUGVDQGXQKRRNWKHP#6ZLYHOWKHORDGFRPSDUWPHQWFRYHUGRZQƃZDUGVDQGSXOOLWRXWLQWKHGLUHFWLRQRIDUURZ#7RLQVWDOOSODFHWKHORDGFRPSDUWPHQWFRYHURQWRWKHJXLGHUDLOVRQWKHOHIWDQGULJKW#3XVKWKHORDGFRPSDUWPHQWFRYHUIRUZDUGVXQWLOLWHQJDJHV#6ZLYHOWKHORDGFRPSDUWPHQWFRYHUXSZDUGVDQGKRRNWKHKDQJLQJFOLSVWRWKHWDLOƃJDWH$WWDFKLQJUHPRYLQJWKHSDUWLWLRQQHW&:$51,1*5LVNRILQMXU\RUGHDWKGXHWRREMHFWVEHLQJSRRUO\VHFXUHG2QLWVRZQWKHSDUWLWLRQQHWFDQQRWVHFXUHRUUHVWUDLQKHDY\REMHFWVLWHPVRIOXJJDJHDQGKHDY\ORDGV<RXFRXOGEHKLWE\DQXQVHFXUHGORDGGXULQJVXGGHQFKDQJHVLQGLUHFWLRQEUDNLQJRULQWKHHYHQWRIDQDFFLGHQW6HDWVDQGVWRZLQJ $

$#$OZD\VVWRZREMHFWVLQVXFKDZD\WKDWWKH\FDQQRWEHWKURZQDURXQG#6HFXUHREMHFWVOXJJDJHRUORDGVDJDLQVWVOLSSLQJRUWLSSLQJRYHUHJE\XVLQJODVKLQJPDWHULDOHYHQZKHQ\RXDUHXVLQJWKHSDUWLWLRQQHW)RUVDIHW\UHDVRQVDOZD\VXVHDSDUWLWLRQQHWZKHQWUDQVSRUWLQJDORDG'DPDJHGSDUWLWLRQQHWVFDQQRORQJHUIXOILOWKHLUIXQFWLRQVDQGPXVWEHUHSODFHG9LVLWDTXDOLILHGVSHFLDOLVWZRUNVKRS3DUWLWLRQQHWZLWKRXWORDGFRPSDUWPHQWHQODUJHƃPHQW3DUWLWLRQQHWZLWKORDGFRPSDUWPHQWHQODUJHPHQW#7RDWWDFKDWWDFKWKHSDUWLWLRQQHWWRWKHKROGHUVRQWKHOHIWDQGULJKWRQWKHURRIOLQLQJ#:LWKRXWORDGFRPSDUWPHQWHQODUJHPHQWDWWDFKWKHKRRNVWRWKHWLHGRZQH\HVRQWKHOHIWDQGULJKWLQVXFKDZD\WKDWWKHKRRNVSRLQWEDFNZDUGV 6HDWVDQGVWRZLQJ$

$#:LWKORDGFRPSDUWPHQWHQODUJHPHQWDWWDFKWKHKRRNVWRWKHWLHGRZQH\HVRQWKHOHIWDQGULJKWLQVXFKDZD\WKDWWKHKRRNVSRLQWWRWKHGRRU#3XOODWWKHORRVHHQGVRIWKHWLHGRZQVWUDSVXQWLOWKHSDUWLWLRQQHWLVWLJKW#7RUHPRYHWXUQWKHEXFNOHRIWKHWLHGRZQVWUDSLQWKHGLUHFWLRQRIDUURZ#6OLGHWKHORRVHHQGRIWKHWLHGRZQVWUDSLQWRWKHEXFNOHLQWKHGLUHFWLRQRIDUURZXQWLOWKHWLHGRZQVWUDSVDUHORRVH#5HPRYHWKHKRRNVIURPWKHWLHGRZQH\HVRQWKHOHIWDQGULJKW#5HPRYHWKHSDUWLWLRQQHWIURPWKHKROGHUVRQWKHURRIOLQLQJRQWKHOHIWDQGULJKW2YHUYLHZRIWKHWLHGRZQH\HV2EVHUYHWKHQRWHVRQORDGLQJWKHYHKLFOHĺSDJH7LHGRZQH\HVYHKLFOHVZLWKWKURXJKORDGLQJIHDWXUHLQWKHUHDUEHQFKVHDW6HDWVDQGVWRZLQJ $

$2YHUYLHZRIEDJKRRNV&:$51,1*5LVNRILQMXU\ZKHQXVLQJEDJKRRNVZLWKKHDY\REMHFWV7KHEDJKRRNVFDQQRWUHVWUDLQKHDY\REMHFWVRULWHPVRIOXJJDJH2EMHFWVRULWHPVRIOXJJDJHFRXOGEHWKURZQDURXQGDQGWKHUHE\KLWYHKLFOHRFFXSDQWVZKHQEUDNLQJRUDEUXSWO\FKDQJLQJGLUHFƃWLRQV#2QO\KDQJOLJKWREMHFWVRQWKHEDJKRRNV#1HYHUKDQJKDUGVKDUSHGJHGRUIUDJLOHREMHFWVRQWKHEDJKRRNV2EVHUYHWKHQRWHVRQORDGLQJWKHYHKLFOHĺSDJH7KHEDJKRRNFDQEHDUDPD[LPXPORDGRINJ'RQRWXVHLWWRVHFXUHDORDG%DJKRRN2SHQLQJRUFORVLQJWKHVWRZDJHVSDFHXQGHUWKHORDGFRPSDUWPHQWIORRU&:$51,1*5LVNRILQMXU\GXHWRDQRSHQORDGFRPSDUWPHQWIORRU,I\RXGULYHZKHQWKHORDGFRPSDUWPHQWIORRULVRSHQREMHFWVFRXOGEHWKURZQDURXQGDQGWKHUHE\VWULNHYHKLFOHRFFXSDQWV7KHUHLVDULVNRILQMXU\SDUWLFXODUO\LQWKHHYHQWRIVXGƃGHQEUDNLQJRUDVXGGHQFKDQJHLQGLUHFWLRQ#$OZD\VFORVHWKHORDGFRPSDUWPHQWIORRUEHIRUHDMRXUQH\ 6HDWVDQGVWRZLQJ$

$#7RRSHQSXOOWKHKDQGOHXSZDUGV#/LIWWKHORDGFRPSDUWPHQWIORRUXSZDUGVE\KDQGOH#7RFORVHIROGWKHORDGFRPSDUWPHQWIORRUGRZQZDUGVDQGWKHQSUHVVKDQGOHGRZQXQWLOLWHQJDJHV$WWDFKLQJWKHURRIUDFN&:$51,1*5LVNRILQMXU\E\H[FHHGLQJWKHPD[LPXPURRIORDG:KHQ\RXORDGWKHURRIWKHYHKLFOHFHQWUHRIJUDYLW\ULVHVDQGWKHGULYLQJFKDUDFWHULVWLFVFKDQJH,I\RXH[FHHGWKHPD[LPXPURRIORDGWKHGULYLQJFKDUDFWHULVWLFVDVZHOODVWKHVWHHUƃLQJDQGEUDNLQJZLOOEHJUHDWO\LPSDLUHG#1HYHUH[FHHGWKHPD[LPXPURRIORDGDQGDGMXVW\RXUGULYLQJVW\OH<RXZLOOILQGLQIRUPDWLRQRQWKHPD[LPXPURRIORDGLQWKH7HFKQLFDOGDWDVHFWLRQ*127(9HKLFOHGDPDJHIURPQRQDSSURYHGURRIUDFNV7KHYHKLFOHFRXOGEHGDPDJHGE\URRIUDFNVZKLFKKDYHQRWEHHQWHVWHGDQGDSSURYHGE\0HUFHGHV%HQ]#2QO\XVHURRIUDFNVWHVWHGDQGDSSURYHGE\0HUFHGHV%HQ]#'HSHQGLQJRQWKHYHKLFOHHTXLSPHQWHQVXUHWKDWZKHQWKHURRIUDFNLVILWWHG=WKHVOLGLQJVXQURRIFDQEHIXOO\UDLVHG=WKHERRWOLGFDQEHIXOO\RSHQHG#3RVLWLRQWKHORDGRQWKHURRIUDFNLQVXFKDZD\WKDWWKHYHKLFOHZLOOQRWVXVƃWDLQGDPDJHHYHQZKHQLWLVLQPRWLRQ*127('DPDJHWRWKHSDQRUDPLFVOLGLQJVXQURRIZKHQDURRIUDFNLVILWWHG7KHSDQRUDPLFVOLGLQJVXQURRIPD\EHGDPƃDJHGE\WKHURRIUDFNLI\RXDWWHPSWWRRSHQLWZKHQWKHURRIUDFNLVILWWHG#'RQRWRSHQWKHSDQRUDPLFVOLGLQJVXQƃURRILIDURRIUDFNLVILWWHG,QRUGHUWRDOORZYHQWLODWLRQRIWKHYHKLFOHLQWHULRU\RXFDQUDLVHWKHSDQRUDPLFVOLGLQJVXQURRI6HDWVDQGVWRZLQJ $

$*127('DPDJHWRWKHFRYHUV7KHFRYHUVPD\EHGDPDJHGDQGVFUDWFKHGZKHQEHLQJRSHQHG#'RQRWXVHPHWDOOLFRUKDUGREMHFWV#)ROGFRYHUVFDUHIXOO\XSZDUGVLQWKHGLUHFWLRQRIWKHDUURZ#6HFXUHWKHURRIUDFNWRWKHDQFKRUDJHSRLQWVXQGHUFRYHUV#&RPSO\ZLWKWKHURRIUDFNPDQXIDFWXUHUVLQVWDOODWLRQLQVWUXFWLRQV#6HFXUHWKHORDGRQWKHURRIUDFN&XSKROGHUV)LWWLQJWKHFXSKROGHULQRUUHPRYLQJLWIURPWKHFHQWUHFRQVROHDXWRPDWLFWUDQVPLVVLRQ&:$51,1*Ƅ5LVNRIDFFLGHQWRULQMXU\ZKHQXVLQJWKHFXSKROGHUZKLOHWKHYHKLFOHLVLQPRWLRQ7KHFXSKROGHUFDQQRWKROGDFRQWDLQHUVHFXUHZKLOHWKHYHKLFOHLVLQPRWLRQ,I\RXXVHDFXSKROGHUZKLOHWKHYHKLFOHLVLQPRWLRQWKHFRQWDLQHUPD\EHIOXQJDURXQGDQGOLTXLGVFRXOGEHVSLOOHG7KHYHKLFOHRFFXSDQWVPD\FRPHLQWRFRQWDFWZLWKWKHOLTXLGDQGLILWLVKRWWKH\FRXOGEHVFDOGHG<RXFRXOGEHGLVWUDFWHGIURPWUDIILFFRQGLƃWLRQVDQG\RXPD\ORVHFRQWURORIWKHYHKLFOH#2QO\XVHWKHFXSKROGHUZKHQWKHYHKLƃFOHLVVWDWLRQDU\#2QO\XVHWKHFXSKROGHUIRUFRQWDLQHUVRIWKHULJKWVL]H#$OZD\VFORVHWKHFRQWDLQHUSDUWLFXODUO\LIWKHOLTXLGLVKRW&XSKROGHULQWKHVWRZDJHFRPSDUWPHQWZLWKFRYHU 6HDWVDQGVWRZLQJ$

$&XSKROGHULQWKHVWRZDJHFRPSDUWPHQWZLWKRXWFRYHU#7RUHPRYH6OLGHWKHVQDSLQEUDFNHWVRIWKHFXSKROGHULQZDUGVXQWLOWKH\DUHXQORFNHG#0RYHWKHFXSKROGHUXSZDUGVRXWRIWKHVWRZDJHFRPSDUWPHQW%7KHFXSKROGHUDQGWKHUXEEHUPDWEHQHDWKLWFDQEHUHPRYHGIRUFOHDQLQJHJZLWKFOHDUOXNHZDUPZDWHU&XSKROGHULQWKHVWRZDJHFRPSDUWPHQWZLWKFRYHU&XSKROGHULQWKHVWRZDJHFRPSDUWPHQWZLWKRXWFRYHU#7RILW,IQHFHVVDU\RSHQWKHVWRZDJHFRPƃSDUWPHQWFRYHUDQGLQVHUWWKHFXSKROGHUDVVKRZQLQWRWKHVWRZDJHFRPSDUWPHQWZLWKWKHVLJQWRWKHYHKLFOHLQWHULRU#6OLGHWKHFXSKROGHURQWRWKHEDUVLQWKHVWRZDJHFRPSDUWPHQW6HDWVDQGVWRZLQJ $

$#6OLGHWKHVQDSLQEUDFNHWVRXWZDUGVXQWLOWKH\HQJDJH#3UHVVEXWWRQDQGRU7KHZLQJVIROGXSZDUGV%7KHFXSKROGHUZLQJVFDQEHIROGHGGRZQƃZDUGVDQGHQJDJHG7KHFXSKROGHUVKROGƃLQJIXQFWLRQZLOOWKHQQRWEHDYDLODEOH2SHQLQJRUFORVLQJWKHFXSKROGHULQWKHUHDUDUPUHVW*127('DPDJHWRWKHUHDUVHDWDUPUHVW:KHQIROGHGRXWWKHUHDUVHDWDUPUHVWFDQEHGDPDJHGE\WKHZHLJKWRI\RXUERG\#'RQRWVLWRUVXSSRUW\RXUVHOIRQWKHUHDUVHDWDUPUHVW*127('DPDJHWRWKHFXSKROGHU:KHQWKHUHDUDUPUHVWLVIROGHGEDFNWKHFXSKROGHUFRXOGEHFRPHGDPDJHG#2QO\IROGWKHUHDUDUPUHVWEDFNZKHQWKHFXSKROGHULVFORVHG#7RRSHQSUHVVFXSKROGHURU7KHFXSKROGHURUH[WHQGVDXWRPDWLƃFDOO\#7RFORVHSXVKWKHFXSKROGHURUEDFNXQWLOLWHQJDJHV$VKWUD\DQGFLJDUHWWHOLJKWHU8VLQJWKHDVKWUD\#:KLOHGULYLQJSODFHWKHFORVHGDVKWUD\LQWKHIURQWGRRUVWRZDJHFRPSDUWPHQWZKLOHGULYLQJ#&KHFNWKDWLWLVVHDWHGILUPO\#&RPSO\ZLWKWKHQRWHVRQORDGLQJWKHYHKLFOHĺSDJH 6HDWVDQGVWRZLQJ$

$#7RRSHQIROGOLGXSZDUGV%7ZLVWWKHWRSSDUWRIWKHDVKWUD\WRUHPRYHLWIRUFOHDQLQJHJZLWKFOHDUOXNHZDUPZDWHURUIRUHPSW\LQJ8VLQJWKHFLJDUHWWHOLJKWHULQWKHIURQWFHQWUHFRQVROH&:$51,1*Ƅ5LVNRIILUHDQGLQMXU\IURPWKHKRWFLJDUHWWHOLJKWHU<RXFDQEXUQ\RXUVHOILI\RXWRXFKWKHKRWKHDWLQJHOHPHQWRUWKHVRFNHWRIWKHFLJDƃUHWWHOLJKWHU,QDGGLWLRQIODPPDEOHPDWHULDOVPD\LJQLWHLI=\RXGURSWKHKRWFLJDUHWWHOLJKWHU=DFKLOGKROGVWKHKRWFLJDUHWWHOLJKWHUWRREMHFWVIRUH[DPSOH#$OZD\VKROGWKHFLJDUHWWHOLJKWHUE\WKHNQRE#$OZD\VPDNHVXUHWKDWWKHFLJDUHWWHOLJKWHULVRXWRIUHDFKRIFKLOGUHQ#1HYHUOHDYHFKLOGUHQXQDWWHQGHGLQWKHYHKLFOH5HTXLUHPHQWV=7KHLJQLWLRQLVVZLWFKHGRQ#3UHVVLQFLJDUHWWHOLJKWHU7KHFLJDUHWWHOLJKWHUZLOOSRSRXWDXWRPDWLƃFDOO\ZKHQWKHKHDWLQJHOHPHQWLVUHGKRW6RFNHWV9VRFNHWLQWKHIURQWFHQWUHFRQVROH5HTXLUHPHQWV=2QO\GHYLFHVZLWKXSWRDPD[LPXPRIZDWWV$DUHSHUPLVVLEOH#/LIWXSVRFNHWFDS#,QVHUWWKHSOXJRIWKHGHYLFH9VRFNHWLQWKHVWRZDJHFRPSDUWPHQWZLWKFRYHULI\RXKDYHFRQQHFWHGDGHYLFHWRWKH9VRFNHWOHDYHWKHFRYHURIWKHVWRZDJHFRPSDUWPHQWRSHQ6HDWVDQGVWRZLQJ $

$8VLQJWKH9VRFNHWLQWKHUHDU&'$1*(55LVNRIIDWDOLQMXU\GXHWRGDPƃDJHGFRQQHFWLQJFDEOHVRUVRFNHWV:KHQDVXLWDEOHGHYLFHLVFRQQHFWHGWKH9SRZHUVRFNHWZLOOEHFDUU\LQJDKLJKYROWDJH<RXFRXOGUHFHLYHDQHOHFWULFVKRFNLIWKHFRQQHFWLQJFDEOHRUWKH9SRZHUVRFNHWLVSXOOHGRXWRIWKHWULPRULVGDPDJHGRUZHW#8VHRQO\FRQQHFWLQJFDEOHVWKDWDUHGU\DQGIUHHRIGDPDJH#:KHQWKHLJQLWLRQLVVZLWFKHGRIIPDNHVXUHWKDWWKH9SRZHUVRFNHWLVGU\#,PPHGLDWHO\KDYHWKH9SRZHUVRFNHWFKHFNHGRUUHSODFHGDWDTXDOLƃILHGVSHFLDOLVHGZRUNVKRSLILWLVGDPƃDJHGRUKDVEHHQSXOOHGRXWRIWKHWULP#1HYHUSOXJWKHFRQQHFWLQJFDEOHLQWRD9SRZHUVRFNHWWKDWLVGDPDJHGRUKDVEHHQSXOOHGRXWRIWKHWULP&'$1*(55LVNRIIDWDOLQMXU\GXHWRLQFRUƃUHFWKDQGOLQJRIWKHVRFNHW<RXFRXOGUHFHLYHDQHOHFWULFVKRFN=LI\RXUHDFKLQWRWKHVRFNHW=LI\RXLQVHUWXQVXLWDEOHGHYLFHVRUREMHFWVLQWRWKHVRFNHW#2QO\FRQQHFWVXLWDEOHGHYLFHVWRWKHVRFNHW5HTXLUHPHQWV='HYLFHVPXVWEHHTXLSSHGZLWKDVXLWDEOHSOXJZKLFKFRQIRUPVWRWKHVWDQGDUGVVSHƃFLILFWRWKHFRXQWU\\RXDUHLQ=2QO\GHYLFHVXSWRDPD[LPXPRIZDWWVDUHSHUPLWWHG=0XOWLSOHVRFNHWVDUHQRWSHUPLWWHG#2SHQIODS#,QVHUWWKHSOXJRIWKHGHYLFHLQWR9VRFNHW:KHQWKHRQERDUGHOHFWULFDOV\VWHPYROWDJHLVVXIILFLHQWLQGLFDWRUODPSOLJKWVXS 6HDWVDQGVWRZLQJ$

$86%SRUWLQWKHUHDU,IWKHLJQLWLRQLVVZLWFKHGRQ\RXFDQFKDUJHD86%GHYLFHHJDPRELOHSKRQHDW86%SRUWVXVLQJDVXLWDEOHFKDUJLQJFDEOH:LUHOHVVFKDUJLQJRIWKHPRELOHSKRQHDQGFRQQHFWLRQZLWKWKHH[WHULRUDHULDO1RWHVRQZLUHOHVVFKDUJLQJRIWKHPRELOHSKRQH&:$51,1*5LVNRILQMXU\GXHWRREMHFWVEHLQJVWRZHGLQFRUUHFWO\,IREMHFWVLQWKHYHKLFOHLQWHULRUDUHVWRZHGLQFRUUHFWO\WKH\FDQVOLGHRUEHWKURZQDURXQGDQGKLWYHKLFOHRFFXSDQWV,QDGGLƃWLRQFXSKROGHUVRSHQVWRZDJHVSDFHVDQGPRELOHSKRQHUHFHSWDFOHVFDQQRWDOZD\VUHWDLQDOOREMHFWVWKH\FRQWDLQ7KHUHLVDULVNRILQMXU\SDUWLFXODUO\LQWKHHYHQWRIVXGGHQEUDNLQJRUDVXGGHQFKDQJHLQGLUHFWLRQ#$OZD\VVWRZREMHFWVVRWKDWWKH\FDQƃQRWEHWKURZQDURXQGLQVXFKVLWXDƃWLRQV#$OZD\VPDNHVXUHWKDWREMHFWVGRQRWSURWUXGHIURPVWRZDJHVSDFHVOXJJDJHQHWVRUVWRZDJHQHWV#&ORVHWKHORFNDEOHVWRZDJHVSDFHVEHIRUHVWDUWLQJDMRXUQH\#$OZD\VVWRZDQGVHFXUHKHDY\KDUGSRLQWHGVKDUSHGJHGIUDJLOHRUEXON\REMHFWVLQWKHERRWORDGFRPSDUWPHQW2EVHUYHWKHQRWHVRQORDGLQJWKHYHKLFOH&:$51,1*5LVNRIILUHIURPSODFLQJREMHFWVLQWKHPRELOHSKRQHVWRZDJHFRPSDUWPHQW,I\RXSODFHREMHFWVLQWKHPRELOHSKRQHVWRZDJHFRPSDUWPHQWWKH\PD\KHDWXSH[FHVVLYHO\DQGHYHQFDWFKILUH#'RQRWSODFHDGGLWLRQDOREMHFWVHVSHƃFLDOO\WKRVHPRGHRIPHWDOLQWKHPRELOHSKRQHVWRZDJHFRPSDUWPHQW6HDWVDQGVWRZLQJ $

$*127('DPDJHWRREMHFWVFDXVHGE\SODFLQJWKHPLQWKHPRELOHSKRQHVWRZƃDJHFRPSDUWPHQW,I\RXSODFHREMHFWVLQWKHPRELOHSKRQHVWRZDJHFRPSDUWPHQWWKHVHPD\EHGDPƃDJHGE\HOHFWURPDJQHWLFILHOGV#'RQRWSODFHFUHGLWFDUGVVWRUDJHPHGLDRURWKHUREMHFWVVHQVLWLYHWRHOHFWURPDJQHWLFILHOGVLQWKHPRELOHSKRQHVWRZDJHFRPSDUWPHQW*127('DPDJHWRWKHPRELOHSKRQHVWRZDJHFRPSDUWPHQWFDXVHGE\OLTXLGV,IOLTXLGVHQWHUWKHPRELOHSKRQHVWRZDJHFRPSDUWPHQWWKHFRPSDUWPHQWPD\EHGDPDJHG#(QVXUHWKDWQROLTXLGVHQWHUWKHPRELOHSKRQHVWRZDJHFRPSDUWPHQW='HSHQGLQJRQWKHYHKLFOHHTXLSPHQWWKHPRELOHSKRQHLVFRQQHFWHGWRWKHYHKLFOHVH[WHULRUDHULDOYLDWKHFKDUJLQJPRGXOH=7KHFKDUJLQJIXQFWLRQDQGZLUHOHVVFRQQHFƃWLRQRIWKHPRELOHSKRQHWRWKHYHKLFOHVH[WHULRUDHULDODUHRQO\DYDLODEOHLIWKHLJQLWLRQLVVZLWFKHGRQ=6PDOOPRELOHSKRQHVPD\QRWEHDEOHWREHFKDUJHGLQHYHU\SRVLWLRQRIWKHPRELOHSKRQHVWRZDJHFRPSDUWPHQW=/DUJHPRELOHSKRQHVZKLFKGRQRWUHVWIODWLQWKHPRELOHSKRQHVWRZDJHFRPSDUWPHQWPD\QRWEHDEOHWREHFKDUJHGRUFRQQHFWHGZLWKWKHYHKLFOHVH[WHULRUDHULDO=7KHPRELOHSKRQHPD\KHDWXSGXULQJWKHFKDUJLQJSURFHVV7KLVGHSHQGVRQWKHDSSOLƃFDWLRQVDSSVFXUUHQWO\UXQQLQJ=7RHQVXUHPRUHHIILFLHQWFKDUJLQJDQGFRQƃQHFWLRQZLWKWKHYHKLFOHVH[WHULRUDHULDOUHPRYHWKHSURWHFWLYHFRYHUIURPWKHPRELOHSKRQH3URWHFWLYHFRYHUVZKLFKDUHGHVLJQHGIRUZLUHOHVVFKDUJLQJDUHH[FOXGHG:LUHOHVVFKDUJLQJRIWKHPRELOHSKRQHLQWKHIURQW5HTXLUHPHQWV=7KHPRELOHSKRQHLVVXLWDEOHIRUZLUHOHVVFKDUJLQJ4LFRPSDWLEOHPRELOHSKRQH%$OLVWRI4LFRPSDWLEOHPRELOHSKRQHVFDQEHIRXQGDWKWWSZZZPHUFHGHVEHQ]FRPFRQQHFW 6HDWVDQGVWRZLQJ$

$#3ODFHWKHPRELOHSKRQHDVFORVHWRWKHFHQWUHRIPDWDVSRVVLEOHZLWKWKHGLVSOD\IDFLQJXSZDUGV:KHQWKHFKDUJLQJV\PEROLVVKRZQLQWKHPXOWLPHGLDV\VWHPWKHPRELOHSKRQHLVEHLQJFKDUJHG0DOIXQFWLRQVGXULQJWKHFKDUJLQJSURFHVVDUHVKRZQLQWKHPXOWLPHGLDV\VWHPGLVSOD\%7KHPDWFDQEHUHPRYHGIRUFOHDQLQJHJXVLQJFOHDQOXNHZDUPZDWHU6WRZDJHFRPSDUWPHQWZLWKRXWFRYHU6HFXUH\RXUPRELOHSKRQHVRLWGRHVQRWJHWWKURZQDERXWGXULQJWKHMRXUQH\#7RVHFXUHPRELOHSKRQHVZLQJOHYHURXW)LWWLQJUHPRYLQJWKHIORRUPDWV&:$51,1*5LVNRIDFFLGHQWGXHWRREMHFWVLQWKHGULYHUVIRRWZHOO2EMHFWVLQWKHGULYHUVIRRWZHOOPD\LPSHGHSHGDOWUDYHORUEORFNDGHSUHVVHGSHGDO7KLVMHRSDUGLVHVWKHRSHUDWLQJDQGURDGVDIHW\RIWKHYHKLFOH#6WRZDOOREMHFWVLQWKHYHKLFOHVHFXUHO\VRWKDWWKH\FDQQRWJHWLQWRWKHGULYHUVIRRWZHOO#$OZD\VILWWKHIORRUPDWVVHFXUHO\DQGDVSUHVFULEHGLQRUGHUWRHQVXUHWKDWWKHUHLVDOZD\VVXIILFLHQWURRPIRUWKHSHGDOV#'RQRWXVHORRVHIORRUPDWVDQGGRQRWSODFHIORRUPDWVRQWRSRIRQHDQRWKHU#7RLQVWDOOVOLGHWKHVHDWEDFNZDUGVDQGOD\WKHIORRUPDWLQWRWKHIRRWZHOO#3UHVVWKHVWXGVRQWRWKHKROGHUV#$GMXVWWKHFRUUHVSRQGLQJVHDW#7RUHPRYHSXOOWKHIORRUPDWRIIWKHKROGHUV#5HPRYHWKHIORRUPDW6HDWVDQGVWRZLQJ $

$([WHULRUOLJKWLQJ1RWHVRQFKDQJLQJWKHOLJKWVZKHQGULYLQJDEURDG,WLVQRWQHFHVVDU\WRFKDQJHWKHKHDGODPSV7KHOHJDOUHTXLUHPHQWVDUHDOVRPHWLQFRXQWULHVZKHUHWUDIILFGULYHVRQWKHRWKHUVLGHRIWKHURDG/LJKWLQJV\VWHPVDQG\RXUUHVSRQVLELOLW\7KHYDULRXVOLJKWLQJV\VWHPVRIWKHYHKLFOHDUHRQO\DLGV7KHGULYHURIWKHYHKLFOHLVUHVSRQVLEOHIRUFRUUHFWYHKLFOHLOOXPLQDWLRQLQDFFRUGDQFHZLWKWKHSUHYDLOLQJOLJKWDQGYLVLELOLW\FRQGLWLRQVOHJDOUHTXLUHPHQWVDQGWUDIILFVLWXDWLRQ/LJKWVZLWFK2SHUDWLQJWKHOLJKWVZLWFKGc/HIWKDQGSDUNLQJOLJKWVHd5LJKWKDQGSDUNLQJOLJKWVI`6WDQGLQJOLJKWVDQGOLFHQFHSODWHOLJKWƃLQJJX$XWRPDWLFGULYLQJOLJKWVSUHIHUUHGOLJKWVZLWFKSRVLWLRQKX'LSSHGEHDPPDLQEHDP^6ZLWFKHVWKHUHDUIRJOLJKWRQRURII:KHQGLSSHGEHDPLVDFWLYDWHGWKHLQGLFDWRUODPSIRUWKHVWDQGLQJOLJKWV`LVGHDFWLYDWHGDQGUHSODFHGE\WKHGLSSHGEHDPLQGLFDWRUODPSX#$OZD\VSDUN\RXUYHKLFOHVDIHO\DQGLQDZHOOOLWDUHDLQDFFRUGDQFHZLWKWKHUHOHYDQWOHJDOVWLSXODWLRQV*127(%DWWHU\GLVFKDUJLQJE\RSHUDWLQJWKHVWDQGLQJOLJKWV2SHUDWLQJWKHVWDQGLQJOLJKWVRYHUDSHULRGRIKRXUVSXWVDVWUDLQRQWKHEDWWHU\#:KHUHSRVVLEOHVZLWFKRQWKHULJKWdRUOHIWcSDUNLQJOLJKW,QWKHFDVHRIVHYHUHEDWWHU\GLVFKDUJLQJWKHVWDQGLQJOLJKWVRUSDUNLQJOLJKWVDUHDXWRPDWLƃFDOO\VZLWFKHGRIIWRIDFLOLWDWHWKHQH[WHQJLQHVWDUW /LJKWDQGVLJKW$

$7KHH[WHULRUOLJKWLQJH[FHSWVWDQGLQJDQGSDUNƃLQJOLJKWVVZLWFKHVRIIDXWRPDWLFDOO\ZKHQWKHGULYHUVGRRULVRSHQHG=2EVHUYHWKHQRWHVRQVXUURXQGOLJKWLQJĺSDJH$XWRPDWLFGULYLQJOLJKWVIXQFWLRQ7KHVWDQGLQJOLJKWVGLSSHGEHDPDQGGD\WLPHUXQQLQJOLJKWVDUHVZLWFKHGRQDXWRPDWLFDOO\GHSHQGLQJRQWKHLJQLWLRQVWDWXVZKHWKHUWKHHQJLQHLVUXQQLQJDQGWKHOLJKWFRQGLWLRQV&:$51,1*5LVNRIDFFLGHQWZKHQWKHGLSSHGEHDPLVVZLWFKHGRIILQSRRUYLVLƃELOLW\:KHQWKHOLJKWVZLWFKLVVHWWRXWKHGLSSHGEHDPPD\QRWEHVZLWFKHGRQDXWRƃPDWLFDOO\LIWKHUHLVIRJVQRZRURWKHUFDXVHVRISRRUYLVLELOLW\VXFKDVVSUD\#,QVXFKFDVHVWXUQWKHOLJKWVZLWFKWRX7KHDXWRPDWLFGULYLQJOLJKWVDUHRQO\DQDLG<RXDUHUHVSRQVLEOHIRUYHKLFOHOLJKWLQJ$FWLYDWLQJGHDFWLYDWLQJWKHUHDUIRJOLJKW5HTXLUHPHQWV=7KHOLJKWVZLWFKLVLQWKHXRUXSRVLƃWLRQ#3UHVVWKH^EXWWRQ3OHDVHREVHUYHWKHFRXQWU\VSHFLILFODZVRQWKHXVHRIUHDUIRJODPSV$GMXVWLQJWKHKHDGODPSUDQJHKDORJHQKHDGODPSV7KHKHDGODPSUDQJHDGMXVWHUDOORZV\RXWRDGMXVWWKHFRQHRIOLJKWIURPWKHKHDGODPSVLQUHODWLRQWRWKHYHKLFOHVORDGFRQGLWLRQZ'ULYHUVVHDWDQGIURQWSDVVHQJHUVHDWRFFXƃSLHGG'ULYHUVVHDWIURQWSDVVHQJHUVHDWDQGUHDUVHDWVRFFXSLHGH'ULYHUVVHDWIURQWSDVVHQJHUVHDWDQGUHDUVHDWVRFFXSLHGORDGFRPSDUWPHQWODGHQI'ULYHUVVHDWDQGIURQWSDVVHQJHUVHDWRFFXƃSLHGDQGPD[LPXPSHUPLVVLEOHUHDUD[OHORDGXWLOLVHG/LJKWDQGVLJKW $

$#7XUQWKHKHDGODPSUDQJHDGMXVWHUWRWKHSRVLWLRQWKDWFRUUHVSRQGVWRWKHORDGFRQGLƃWLRQRI\RXUYHKLFOH2SHUDWLQJWKHFRPELQDWLRQVZLWFKIRUWKHOLJKWV0DLQEHDP7XUQVLJQDOOLJKWULJKW+HDGODPSIODVKHU7XUQVLJQDOOLJKWOHIW#8VHWKHFRPELQDWLRQVZLWFKWRDFWLYDWHWKHGHVLUHGIXQFWLRQ0DLQEHDP#7RVZLWFKRQWXUQWKHOLJKWVZLWFKWRWKHXRUXSRVLWLRQ#3UHVVWKHFRPELQDWLRQVZLWFKLQWKHGLUHFWLRQRIDUURZ:KHQWKHPDLQEHDPLVDFWLYDWHGWKHLQGLFDƃWRUODPSIRUGLSSHGEHDPXLVGHDFWLYDƃWHGDQGUHSODFHGE\WKHLQGLFDWRUODPSIRUWKHPDLQEHDPW#7RVZLWFKRIISUHVVWKHFRPELQDWLRQVZLWFKLQWKHGLUHFWLRQRIDUURZRUSXOOLQWKHGLUHFWLRQRIDUURZ+HDGODPSIODVKHU#3XOOWKHFRPELQDWLRQVZLWFKLQWKHGLUHFWLRQRIDUURZ7XUQVLJQDOOLJKWV#7RLQGLFDWHEULHIO\SUHVVWKHFRPELQDWLRQVZLWFKEULHIO\XSWRWKHSRLQWRIUHVLVWDQFHLQWKHGLUHFWLRQRIDUURZRU7KHFRUUHVSRQGLQJWXUQVLJQDOOLJKWIODVKHVWKUHHWLPHV#7RLQGLFDWHSHUPDQHQWO\SUHVVWKHFRPELƃQDWLRQVZLWFKEH\RQGWKHSRLQWRIUHVLVWDQFHLQWKHGLUHFWLRQRIDUURZRU9HKLFOHVZLWK$FWLYH/DQH.HHSLQJ$VVLVW$FWLYH/DQH.HHSLQJ$VVLVWFDQ=OHQJWKHQWXUQVLJQDORSHUDWLRQIRUWKHGXUDWLRQRIWKHODQHFKDQJHLIWKHGULYHUKDVDFWLYDWHGWKHWXUQVLJQDOLQGLFDWRU=DXWRPDWLFDOO\DFWLYDWHWKHWXUQVLJQDOLQGLƃFDWRULIWKHGULYHULQGLFDWHGWRWXUQLQWKDWGLUHFWLRQLPPHGLDWHO\EHIRUHEXWDODQHFKDQJHZDVQRWLPPHGLDWHO\SRVVLEOH /LJKWDQGVLJKW$

$$FWLYDWLQJGHDFWLYDWLQJWKHKD]DUGZDUQLQJOLJKW#3UHVVWKHEXWWRQ7KHKD]DUGZDUQLQJODPSVVZLWFKRQDXWRPDWLƃFDOO\LI=7KHDLUEDJKDVEHHQGHSOR\HG=7KHYHKLFOHEUDNHVVKDUSO\IURPDVSHHGRIPRUHWKDQNPKWRDVWDQGVWLOO7KHKD]DUGZDUQLQJODPSVVZLWFKRIIDXWRPDWLƃFDOO\ZKHQWKHYHKLFOHUHDFKHVDVSHHGH[FHHGƃLQJNPKIROORZLQJPD[LPXPIXOOVWRSEUDNƃLQJ$GDSWLYHIXQFWLRQV08/7,%($0/(')XQFWLRQVRIWKH,QWHOOLJHQW/LJKW6\VWHP7KH08/7,%($0/('KHDGODPSVDGDSWWRWKHGULYLQJDQGZHDWKHUVLWXDWLRQDQGSURYLGHH[WHQƃGHGIXQFWLRQVIRULPSURYLQJLOOXPLQDWLRQRIWKHURDG7KHV\VWHPFRPSULVHVWKHIROORZLQJIXQFWLRQV=$FWLYHKHDGODPSVĺSDJH=&RUQHULQJOLJKWĺSDJH=0RWRUZD\PRGHĺSDJH=&LW\OLJKWLQJĺSDJH6\VWHPOLPLWDWLRQV=7KHV\VWHPLVDFWLYHRQO\ZKHQLWLVGDUN$FWLYHKHDGODPSVIXQFWLRQ=7KHKHDGODPSVIROORZWKHVWHHULQJPRYHƃPHQWV=5HOHYDQWDUHDVDUHEHWWHULOOXPLQDWHGGXULQJWUDYHO7KHIXQFWLRQVDUHDFWLYHZKHQWKHPDLQEHDPLVVZLWFKHGRQ/LJKWDQGVLJKW $

$&RUQHULQJOLJKWIXQFWLRQ7KHFRUQHULQJOLJKWLPSURYHVWKHLOOXPLQDWLRQRIWKHFDUULDJHZD\RYHUDZLGHDQJOHLQWKHWXUQLQJGLUHFWLRQHQDEOLQJEHWWHUYLVLELOLW\RQWLJKWEHQGVIRUH[DPSOH,WFDQEHDFWLYDWHGRQO\ZKHQWKHGLSSHGEHDPLVVZLWFKHGRQ7KHIXQFWLRQLVDFWLYH=$WVSHHGVEHORZNPKZKHQWKHWXUQVLJƃQDOOLJKWLVVZLWFKHGRQRUWKHVWHHULQJZKHHOLVWXUQHG=$WVSHHGVEHWZHHQNPKDQGNPKZKHQWKHVWHHULQJZKHHOLVWXUQHG5RXQGDERXWDQGLQWHUVHFWLRQIXQFWLRQWKHFRUQHULQJOLJKWLVDFWLYDWHGRQERWKVLGHVWKURXJKDQHYDOXDWLRQRIWKHFXUUHQW*36SRVLWLRQRIWKHYHKLFOH,WUHPDLQVDFWLYHXQWLODIWHUWKHYHKLFOHKDVOHIWWKHURXQGDERXWRUWKHLQWHUVHFWLRQ0RWRUZD\PRGHIXQFWLRQ0RWRUZD\PRGHLQFUHDVHVWKHUDQJHDQGEULJKWƃQHVVRIWKHFRQHRIOLJKWHQDEOLQJEHWWHUYLVLELOƃLW\7KHIXQFWLRQLVDFWLYHLIDPRWRUZD\MRXUQH\LVGHWHFWHGE\=7KHYHKLFOHVVSHHG=7KHPXOWLIXQFWLRQFDPHUD=7KH*367KHIXQFWLRQLVQRWDFWLYH=$WVSHHGVEHORZNPK)XQFWLRQRI&LW\OLJKWLQJ&LW\OLJKWLQJLPSURYHVWKHLOOXPLQDWLRQRIURDGƃVLGHVZLWKLQEXLOWXSDUHDVXVLQJDEURDGHUGLVWULƃEXWLRQRIOLJKW7KHIXQFWLRQLVDFWLYH=DWORZHUVSHHGV=LQLOOXPLQDWHGSDUWVRIEXLOWXSDUHDV6ZLWFKLQJWKH,QWHOOLJHQW/LJKW6\VWHPRQRII5HTXLUHPHQW=WKHLJQLWLRQLVVZLWFKHGRQ0XOWLPHGLDV\VWHP,.6HWWLQJV./LJKWV.0XOWLEHDP/('#$FWLYDWHRUGHDFWLYDWHWKHIXQFWLRQ /LJKWDQGVLJKW$

$$GDSWLYH+LJKEHDP$VVLVW)XQFWLRQRI$GDSWLYH+LJKEHDP$VVLVW&:$51,1*5LVNRIDFFLGHQWGHVSLWH$GDSWLYH+LJKEHDP$VVLVW$GDSWLYH+LJKEHDP$VVLVWGRHVQRWUHFRJƃQLVHWKHIROORZLQJURDGXVHUV=5RDGXVHUVZLWKRXWOLJKWVHJSHGHVƃWULDQV=5RDGXVHUVZLWKSRRUOLJKWLQJHJF\FOLVWV=5RDGXVHUVZKRVHOLJKWLQJLVREVWUXFWHGHJE\DEDUULHU2QYHU\UDUHRFFDVLRQV$GDSWLYH+LJKEHDP$VVLVWPD\IDLOWRUHFRJQLVHRWKHUURDGXVHUVZLWKWKHLURZQOLJKWLQJRUPD\UHFRJQLVHWKHPWRRODWH,QWKLVRULQVLPLODUVLWXDWLRQVWKHDXWRPDWLFPDLQEHDPZLOOQRWEHGHDFWLYDWHGRUZLOOEHDFWLYDWHGGHVSLWHWKHSUHVHQFHRIRWKHUURDGXVHUV#$OZD\VREVHUYHWKHWUDIILFFDUHIXOO\DQGVZLWFKRIIWKHPDLQEHDPLQJRRGWLPH6\VWHPOLPLWDWLRQV$GDSWLYH+LJKEHDP$VVLVWFDQQRWWDNHLQWRDFFRXQWURDGZHDWKHURUWUDIILFFRQGLWLRQV'HWHFWLRQPD\EHUHVWULFWHGLI=9LVLELOLW\LVLPSDLUHGIRUH[DPSOHLQIRJKHDY\UDLQRUVQRZ=7KHUHLVGLUWRQWKHVHQVRUVRUWKHVHQVRUVDUHREVFXUHG$GDSWLYH+LJKEHDP$VVLVWLVRQO\DQDLG<RXDUHUHVSRQVLEOHIRUDGMXVWLQJWKHYHKLFOHVOLJKWLQJWRWKHSUHYDLOLQJOLJKWYLVLELOLW\DQGWUDIILFFRQGLƃWLRQV $GDSWLYH+LJKEHDP$VVLVWVZLWFKHVDXWRPDWLƃFDOO\EHWZHHQ='LSSHGEHDP=0DLQEHDP$WVSHHGVDERYHNPK=,IQRRWKHUURDGXVHUVDUHGHWHFWHGWKHPDLQEHDPLVDXWRPDWLFDOO\VZLWFKHGRQ/LJKWDQGVLJKW $

$7KHPDLQEHDPVZLWFKHVRIIDXWRPDWLFDOO\=$WVSHHGVEHORZNPK=,IRWKHUURDGXVHUVDUHGHWHFWHG=,IVWUHHWOLJKWLQJLVVXIILFLHQW$WVSHHGVDERYHDSSUR[NPK=7KHKHDGODPSUDQJHRIWKHGLSSHGEHDPLVUHJXODWHGDXWRPDWLFDOO\EDVHGRQWKHGLVƃWDQFHWRRWKHUURDGXVHUV7KHV\VWHPVRSWLFDOVHQVRULVORFDWHGEHKLQGWKHZLQGVFUHHQQHDUWKHRYHUKHDGFRQWUROSDQHO6ZLWFKLQJ$GDSWLYH+LJKEHDP$VVLVWRQRII#7RVZLWFKRQWXUQWKHOLJKWVZLWFKWRWKHXSRVLWLRQ#6ZLWFKRQWKHPDLQEHDPXVLQJWKHFRPELQDƃWLRQVZLWFK:KHQWKHPDLQEHDPLVVZLWFKHGRQDXWRƃPDWLFDOO\LQWKHGDUNWKHÎLQGLFDWRUODPSLQWKHPXOWLIXQFWLRQGLVSOD\FRPHVRQ#7RVZLWFKRIIVZLWFKRIIWKHPDLQEHDPXVLQJWKHFRPELQDWLRQVZLWFK$GDSWLYH+LJKEHDP$VVLVW3OXV$GDSWLYH+LJKEHDP$VVLVW3OXVIXQFWLRQ&:$51,1*5LVNRIDFFLGHQWGHVSLWH$GDSWLYH+LJKEHDP$VVLVW3OXV$GDSWLYH+LJKEHDP$VVLVW3OXVGRHVQRWUHFƃRJQLVHWKHIROORZLQJURDGXVHUV=5RDGXVHUVZLWKRXWOLJKWVHJSHGHVƃWULDQV=5RDGXVHUVZLWKSRRUOLJKWLQJHJF\FOLVWV=5RDGXVHUVZKRVHOLJKWLQJLVREVWUXFWHGHJE\DEDUULHU2QYHU\UDUHRFFDVLRQV$GDSWLYH+LJKEHDP$VVLVW3OXVPD\IDLOWRUHFRJQLVHRWKHUURDGXVHUVWKDWKDYHOLJKWVRUPD\UHFRJQLVHWKHPWRRODWH,QWKLVRULQVLPLODUVLWXDWLRQVWKHDXWRPDWLFPDLQEHDPZLOOQRWEHGHDFWLYDWHGRUZLOOEHDFWLYDWHGGHVSLWHWKHSUHVHQFHRIRWKHUURDGXVHUV#$OZD\VREVHUYHWKHWUDIILFFDUHIXOO\DQGVZLWFKRIIWKHPDLQEHDPLQJRRGWLPH6\VWHPOLPLWDWLRQV$GDSWLYH+LJKEHDP$VVLVW3OXVFDQQRWWDNHLQWRDFFRXQWURDGZHDWKHURUWUDIILFFRQGLWLRQV'HWHFWLRQPD\EHUHVWULFWHGLI=9LVLELOLW\LVLPSDLUHGIRUH[DPSOHLQIRJKHDY\UDLQRUVQRZ=7KHUHLVGLUWRQWKHVHQVRUVRUWKHVHQVRUVDUHREVFXUHG$GDSWLYH+LJKEHDP$VVLVW3OXVLVRQO\DQDLG<RXDUHUHVSRQVLEOHIRUDGMXVWLQJWKHYHKLFOHVOLJKWLQJWRWKHSUHYDLOLQJOLJKWYLVLELOLW\DQGWUDIƃILFFRQGLWLRQV /LJKWDQGVLJKW$

$$GDSWLYH+LJKEHDP$VVLVW3OXVVZLWFKHVDXWRƃPDWLFDOO\EHWZHHQ='LSSHGEHDP=3DUWLDOPDLQEHDP=0DLQEHDP7KHSDUWLDOPDLQEHDPXVHVWKHPDLQEHDPWRVKLQHSDVWRWKHUURDGXVHUVUDWKHUWKDQGD]]OLQJWKHP7KHYHKLFOHLQIURQWLVLOOXPLQDWHGE\WKHGLSSHGEHDP$WVSHHGVDERYHNPK=,IQRRWKHUURDGXVHUVDUHGHWHFWHGWKHPDLQEHDPLVDXWRPDWLFDOO\VZLWFKHGRQ=,IRWKHUURDGXVHUVDUHGHWHFWHGWKHSDUWLDOPDLQEHDPLVDXWRPDWLFDOO\VZLWFKHGRQ$WVSHHGVEHORZNPKRUZKHQWKHUHLVVXIILƃFLHQWVWUHHWOLJKWLQJ=7KHPDLQEHDPVZLWFKHVRIIDXWRPDWLFDOO\=7KHSDUWLDOPDLQEHDPVZLWFKHVRIIDXWRPDWLƃFDOO\7KHV\VWHPVRSWLFDOVHQVRULVORFDWHGEHKLQGWKHZLQGVFUHHQQHDUWKHRYHUKHDGFRQWUROSDQHO6ZLWFKLQJ$GDSWLYH+LJKEHDP$VVLVW3OXVRQRII#7RVZLWFKRQWXUQWKHOLJKWVZLWFKWRWKHXSRVLWLRQ#6ZLWFKRQWKHPDLQEHDPXVLQJWKHFRPELQDƃWLRQVZLWFK:KHQWKHPDLQEHDPLVVZLWFKHGRQDXWRƃPDWLFDOO\LQWKHGDUNWKHÎLQGLFDWRUODPSRQWKHPXOWLIXQFWLRQGLVSOD\FRPHVRQ#7RVZLWFKRIIVZLWFKRIIWKHPDLQEHDPXVLQJWKHFRPELQDWLRQVZLWFK6HWWLQJWKHGLSSHGEHDP9HKLFOHVZLWK08/7,%($0/('KHDGODPSVRQO\0XOWLPHGLDV\VWHP,.6HWWLQJV./LJKWV.'LSSHGEHDPV#6HOHFW5LJKWVLGHWUDIILF/HIWVLGHWUDIILFRU$XWRPDWLF6HWWLQJWKHH[WHULRUOLJKWLQJVZLWFKRIIGHOD\WLPH5HTXLUHPHQWV=7KHOLJKWVZLWFKLVLQWKHXSRVLWLRQ/LJKWDQGVLJKW $

$0XOWLPHGLDV\VWHP,.6HWWLQJV./LJKWV.([WHULRUOLJKWVKXWRII7KHH[WHULRUOLJKWLQJLVDFWLYDWHGIRUWKHFRQILJƃXUHGWLPHZKHQWKHYHKLFOHLVSDUNHG#6HWWKHVZLWFKRIIGHOD\WLPH6ZLWFKLQJWKHVXUURXQGOLJKWLQJRQRII0XOWLPHGLDV\VWHP,.6HWWLQJV./LJKWV.6XUURXQGOLJKWLQJ7KHH[WHULRUOLJKWLQJUHPDLQVOLWIRUVHFRQGVDIWHUWKHYHKLFOHLVXQORFNHG:KHQ\RXVWDUWWKHYHKLFOHWKHVXUURXQGOLJKWLQJLVGHDFWLYDWHGDQGWKHDXWRPDWLFGULYLQJOLJKWVDUHDFWLYDWHG#$FWLYDWHRUGHDFWLYDWHWKHIXQFWLRQ,QWHULRUOLJKWLQJ$GMXVWLQJWKHLQWHULRUOLJKWLQJ)URQWRYHUKHDGFRQWUROSDQHO=)URQWOHIWUHDGLQJODPS3$XWRPDWLFLQWHULRUOLJKWLQJFRQWUROJ)URQWLQWHULRUOLJKWLQJB5HDULQWHULRUOLJKWLQJ=)URQWULJKWUHDGLQJODPS#7RVZLWFKRQRURIISUHVVWKHEXWƃWRQ&RQWUROSDQHOLQWKHJUDEKDQGOH=5HDUUHDGLQJODPS#7RVZLWFKRQRURIISUHVVWKHEXWWRQ$GMXVWLQJWKHDPELHQWOLJKWLQJ0XOWLPHGLDV\VWHP,.6HWWLQJV./LJKWV.$PELHQWOLJKWLQJ6HWWLQJWKHFRORXUDQGEULJKWQHVV#6HOHFW6HWWLQJV#6HWWKHFRORXUDQGEULJKWQHVVYDOXHV /LJKWDQGVLJKW$

$%FRORXUVDUHDYDLODEOH$FWLYDWLQJWKHEULJKWQHVVIRU]RQHV#6HOHFW6HWWLQJV#6HOHFW%ULJKWQHVV]RQHV#$FWLYDWHRUGHDFWLYDWHWKHIXQFWLRQ7KH(PSKDVLV$PELHQWDQG9HQWV]RQHVFDQEHVHWVHSDUDWHO\%)HZHU]RQHVPD\EHDYDLODEOHGHSHQGLQJRQWKHYHKLFOHHTXLSPHQW$FWLYDWLQJPXOWLFRORXUHGOLJKWLQJ#6HOHFW6HWWLQJV#6HOHFW0XOWLFRORXU#$FWLYDWHRUGHDFWLYDWHWKHIXQFWLRQ7KHUHDUHWHQSUHVHWFRORXUFRPELQDWLRQVDYDLODEOH$FWLYDWLQJPXOWLFRORXUHGDQLPDWLRQ#6HOHFW0XOWLFRORXUDQLPDW#$FWLYDWHRUGHDFWLYDWHWKHIXQFWLRQ7KHFKRVHQFRORXUFRPELQDWLRQFKDQJHVLQDSUHGHILQHGUK\WKP$FWLYDWLQJZHOFRPHOLJKWLQJ#6HOHFW:HOFRPH#$FWLYDWHRUGHDFWLYDWHWKHIXQFWLRQ:KHQWKHYHKLFOHLVXQORFNHGDVSHFLDOLQWHƃULRUOLJKWLQJVHTXHQFHUXQV$FWLYDWLQJGHSHQGHQF\RQDLUFRQGLWLRQLQJVHWWLQJV#6HOHFW&OLPDWH#$FWLYDWHRUGHDFWLYDWHWKHIXQFWLRQ,IFKDQJHVDUHPDGHWRWKHWHPSHUDWXUHVHWƃWLQJLQWKHYHKLFOHWKHFRORXURIWKHDPELHQWOLJKWLQJFKDQJHVEULHIO\6ZLWFKLQJWKHLQQHUVZLWFKRIIGHOD\WLPHRQRII0XOWLPHGLDV\VWHP,.6HWWLQJV./LJKWV.,QWHULRUOLJKWVKXWRII#6ZLWFKWKHVZLWFKRIIGHOD\WLPHRQRURII&KDQJLQJEXOEVRQO\IRUYHKLFOHVZLWKKDORƃJHQKHDGODPSV1RWHVRQFKDQJLQJEXOEV&:$51,1*5LVNRIEXUQVIURPKRWFRPƃSRQHQWSDUWVZKLOVWUHSODFLQJDEXOE%XOEVODPSVDQGSOXJVFDQEHFRPHYHU\KRWGXULQJRSHUDWLRQ:KHQUHSODFLQJDEXOE\RXFRXOGEXUQ\RXUƃVHOIRQWKHVHFRPSRQHQWSDUWV#$OORZWKHFRPSRQHQWSDUWVWRFRROGRZQEHIRUHUHSODFLQJWKHEXOE='RQRWXVHDEXOELILWKDVEHHQGURSSHGRULILWVJODVVKDVEHHQVFUDWFKHG7KHEXOEPD\RWKHUZLVHH[SORGH='RQRWWRXFKWKHJODVVEXOEZLWK\RXUEDUHKDQGV=3URWHFWEXOEVIURPPRLVWXUHDQGGRQRWDOORZEXOEVWRFRPHLQWRFRQWDFWZLWKOLTXLGV/LJKWDQGVLJKW $

$2YHUYLHZRIWKHEXOEVWREHFKDQJHG+DORJHQKHDGODPSV0DLQEHDPEXOE+:'LSSHGEHDPEXOE+:7DLOODPSV7XUQVLJQDOOLJKWEXOE3<:5HYHUVLQJOLJKWEXOE::&KDQJLQJWKHIURQWEXOEVYHKLFOHVZLWKKDORƃJHQKHDGODPSV)LWWLQJUHPRYLQJWKHFRYHURQWKHIURQWZKHHODUFK5HTXLUHPHQWV=7KHOLJKWLQJV\VWHPLVVZLWFKHGRII=7KHDSSURSULDWHIURQWZKHHOLVWXUQHGLQZDUGV /LJKWDQGVLJKW$

$#7RUHPRYHWXUQWKHFRYHUWRWKHOHIWDQGUHPRYHLWIURPWKHZKHHODUFKOLQHU#7RLQVWDOOLQVHUWWKHFRYHULQWRWKHZKHHODUFKOLQHUDQGWXUQLWWRWKHULJKWXQWLOLWHQJDJHV5HSODFLQJEXOEVLQWKHKDORJHQKHDGODPS5HTXLUHPHQWV='LSSHGEHDPEXOEW\SH+:=0DLQEHDPEXOEW\SH+:'LSSHGEHDPKRXVLQJFRYHU0DLQEHDPKRXVLQJFRYHU#6ZLWFKWKHOLJKWLQJV\VWHPRII#5HPRYHWKHFRYHULQWKHIURQWZKHHODUFKĺSDJH#7XUQWKHUHOHYDQWKRXVLQJFRYHUDQWLFORFNƃZLVHDQGUHPRYHLW#7XUQWKHVRFNHWDQWLFORFNZLVHDQGUHPRYHLW#3XOOWKHEXOERXWRIWKHVRFNHW#,QVHUWWKHQHZEXOELQWRWKHVRFNHWVXFKWKDWWKHHQWLUHEDVHRIWKHEXOELVUHVWLQJRQWKHERWWRPRIWKHVRFNHW#,QVHUWWKHVRFNHWDQGWXUQLWFORFNZLVH#3UHVVRQWKHKRXVLQJFRYHUDQGWXUQLWFORFNƃZLVH#5HSODFHWKHFRYHULQWKHIURQWZKHHODUFKĺSDJH&KDQJLQJWKHUHDUEXOEVYHKLFOHVZLWKKDORƃJHQKHDGODPSV5HSODFLQJWKHWDLOODPSEXOEV#'XHWRWKHLUORFDWLRQVKDYHWKHEXOEVIRUWKHWXUQVLJQDOOLJKWDQGUHYHUVLQJOLJKWFKDQJHGDWDTXDOLILHGVSHFLDOLVWZRUNVKRS:LQGVFUHHQZLSHUVDQGZLQGVFUHHQZDVKHUV\VWHP6ZLWFKLQJWKHZLQGVFUHHQZLSHUVRQRIIÔ6LQJOHZLSHZLSHVZLWKZDVKHUIOXLGGZ:LQGVFUHHQZLSHUVRIIHb,QWHUPLWWHQWZLSLQJQRUPDO9HKLFOHVZLWKUDLQVHQVRUQRUPDODXWRPDWLFZLSLQJ/LJKWDQGVLJKW $

$Ic,QWHUPLWWHQWZLSLQJIUHTXHQW9HKLFOHVZLWKUDLQVHQVRUIUHTXHQWDXWRƃPDWLFZLSLQJJª&RQWLQXRXVZLSLQJVORZK©&RQWLQXRXVZLSLQJIDVW#7XUQWKHFRPELQDWLRQVZLWFKWRWKHFRUUHFWSRVLWLRQGK#6LQJOHZLSHZDVKLQJSXVKWKHEXWWRQRQWKHFRPELQDWLRQVZLWFKLQWKHGLUHFWLRQRIDUURZ=Ó6LQJOHZLSH=Ô:LSLQJZLWKZDVKHUIOXLG6ZLWFKLQJWKHUHDUZLQGRZZLSHURQRIIâ6LQJOHZLSHZDVKLQJÅ,QWHUPLWWHQWZLSLQJ#6LQJOHZLSHSUHVVEXWWRQWRWKHSRLQWRIUHVLVWDQFH#:LSLQJZLWKZDVKHUIOXLGSUHVVEXWWRQEH\RQGWKHSRLQWRIUHVLVWDQFH#6ZLWFKLQJLQWHUPLWWHQWZLSLQJRQRURIISUHVVEXWWRQ7KHÅV\PERODSSHDUVRQWKHLQVWUXPHQWFOXVWHUZKHQWKHUHDUZLQGRZZLSHULVVZLWFKHGRQ5HSODFLQJWKHZLQGVFUHHQZLSHUEODGHV&:$51,1*5LVNRIEHFRPLQJWUDSSHGLIWKHZLQGVFUHHQZLSHUVDUHVZLWFKHGRQZKLOHZLSHUEODGHVDUHEHLQJUHSODFHG,IWKHZLQGVFUHHQZLSHUVEHJLQWRPRYHZKLOH\RXDUHFKDQJLQJWKHZLSHUEODGHV\RXFDQEHWUDSSHGE\WKHZLSHUDUP#$OZD\VVZLWFKRIIWKHZLQGVFUHHQZLSƃHUVDQGLJQLWLRQEHIRUHFKDQJLQJWKHZLSHUEODGHV5HPRYLQJWKHZLSHUEODGHV#6ZLWFKRIIWKHLJQLWLRQ /LJKWDQGVLJKW$

$#:LWKLQDURXQGVHFRQGVSUHVVEXWWRQRQWKHFRPELQDWLRQVZLWFKĺSDJH7KHZLSHUDUPVPRYHLQWRWKHFKDQJHSRVLƃWLRQ#)ROGWKHZLSHUDUPVDZD\IURPWKHZLQGƃVKLHOG#+ROGWKHZLSHUDUPZLWKRQHKDQG:LWKWKHRWKHUKDQGWXUQWKHZLSHUEODGHLQWKHGLUHFƃWLRQRIDUURZDZD\IURPWKHZLSHUDUPDVIDUDVLWZLOOJR#6OLGHFDWFKLQWKHGLUHFWLRQRIDUURZXQWLOLWHQJDJHVLQWKHUHPRYDOSRVLWLRQ#5HPRYHWKHZLSHUEODGHLQWKHGLUHFWLRQRIDUURZDZD\IURPWKHZLSHUDUP)LWWLQJWKHZLSHUEODGHV#,QVHUWWKHQHZZLSHUEODGHLQWRWKHZLSHUDUPLQWKHGLUHFWLRQRIDUURZ#6OLGHFDWFKLQWKHGLUHFWLRQRIDUURZXQWLOLWHQJDJHVLQWKHORFNLQJSRVLWLRQ#0DNHVXUHWKDWWKHZLSHUEODGHVLWVFRUUHFWO\#)ROGWKHZLSHUDUPVEDFNRQWRWKHZLQGƃVFUHHQ0DLQWHQDQFHGLVSOD\/LJKWDQGVLJKW $

$#5HPRYHSURWHFWLYHILOPRIWKHPDLQWHƃQDQFHGLVSOD\RQWKHWLSRIWKHQHZO\ILWWHGZLSHUEODGHV,IWKHFRORXURIWKHPDLQWHQDQFHGLVSOD\FKDQJHVIURPEODFNWR\HOORZWKHZLSHUEODGHVVKRXOGEHUHSODFHG%7KHGXUDWLRQRIWKHFRORXUFKDQJHYDULHVGHSHQGLQJRQWKHXVDJHFRQGLWLRQV&KDQJLQJWKHUHDUZLQGRZZLSHUEODGH5HPRYLQJWKHZLSHUEODGH#6ZLWFKRIIWKHLJQLWLRQ#)ROGZLSHUDUPDZD\IURPWKHUHDUZLQƃGRZXQWLOLWHQJDJHVLQWKHFKDQJHSRVLWLRQ#8QFOLSZLSHUEODGHRQZLSHUDUPDQGUHPRYHLWLQWKHGLUHFWLRQRIDUURZ)LWWLQJWKHZLSHUEODGH#3RVLWLRQZLSHUEODGHZLWKERWKOXJVRQKROGHURQWKHZLSHUDUP#3UHVVZLSHUEODGHLQWKHGLUHFWLRQRIDUURZXQWLOLWHQJDJHVLQWKHKROGHU#0DNHVXUHWKDWZLSHUEODGHVLWVFRUUHFWO\#)ROGWKHZLSHUDUPIURPWKHFKDQJHSRVLWLRQEDFNRQWRWKHUHDUZLQGRZ /LJKWDQGVLJKW$

$0LUURUV2SHUDWLQJWKHRXWVLGHPLUURUV&:$51,1*5LVNRILQMXU\WKURXJKDGMXVWƃLQJYHKLFOHVHWWLQJVZKLOHWKHYHKLFOHLVLQPRWLRQ<RXFRXOGORVHFRQWURORIWKHYHKLFOHLQWKHIROORZLQJVLWXDWLRQV=LI\RXDGMXVWWKHGULYHUVVHDWWKHKHDGUHVWUDLQWVWKHVWHHULQJZKHHORUWKHPLUƃURUZKLOHWKHYHKLFOHLVLQPRWLRQ=LI\RXIDVWHQ\RXUVHDWEHOWZKLOHWKHYHKLƃFOHLVLQPRWLRQ#%HIRUHVWDUWLQJWKHHQJLQHDGMXVWWKHGULYHUVVHDWWKHKHDGUHVWUDLQWVWKHVWHHULQJZKHHORUWKHPLUURUDQGIDVWHQ\RXUVHDWEHOW&:$51,1*5LVNRIDFFLGHQWGXHWRPLVƃMXGJHPHQWRIGLVWDQFHVZKHQXVLQJWKHRXWVLGHPLUURU7KHRXWVLGHPLUURUVUHIOHFWREMHFWVRQDVPDOOHUVFDOH7KHREMHFWVLQYLHZDUHLQIDFWFORVHUWKDQWKH\DSSHDU$VDUHVXOW\RXPD\PLVMXGJHWKHGLVWDQFHEHWZHHQ\RXDQGWKHURDGXVHUGULYLQJEHKLQG\RXHJZKHQFKDQJLQJODQHV#7KHUHIRUHDOZD\VORRNRYHU\RXUVKRXOƃGHULQRUGHUWRHQVXUHWKDW\RXDUHDZDUHRIWKHDFWXDOGLVWDQFHEHWZHHQ\RXDQGWKHURDGXVHUVGULYLQJEHKLQG\RX#7RIROGLQRURXWEULHIO\SUHVVEXWWRQ#7RVHWSUHVVEXWWRQRUWRVHOHFWWKHRXWVLGHPLUURUWREHDGMXVWHG#3UHVVEXWWRQWRDGMXVWWKHSRVLWLRQRIWKHPLUURUJODVV/LJKWDQGVLJKW $

$%,IWKHEDWWHU\KDVEHHQGLVFRQQHFWHGRUFRPƃSOHWHO\GLVFKDUJHG\RXPXVWUHVHWWKHRXWƃVLGHPLUURUV2QO\WKHQZLOOWKHDXWRPDWLFPLUURUIROGLQJIXQFWLRQZRUNSURSHUO\#7RDGMXVWEULHIO\SUHVVEXWWRQ$QRXWVLGHPLUURUWKDWKDVEHHQSXVKHGRXWRISRVLWLRQFDQEHHQJDJHGLQSRVLWLRQDJDLQLQWKHIROORZLQJPDQQHU#9HKLFOHVZLWKRXWHOHFWULFDOO\IROGLQJRXWƃVLGHPLUURUVPDQXDOO\PRYHWKHRXWVLGHPLUURULQWRWKHFRUUHFWSRVLWLRQ#9HKLFOHVZLWKHOHFWULFDOO\IROGLQJRXWVLGHPLUURUVSUHVVDQGKROGEXWWRQ<RXZLOOKHDUDFOLFNDQGWKHPLUURUZLOODXGLƃEO\HQJDJHLQSRVLWLRQ7KHRXWVLGHPLUURULVVHWWRWKHFRUUHFWSRVLWLRQ$XWRPDWLFDQWLGD]]OHPLUURUVIXQFWLRQ&:$51,1*5LVNRIEXUQVDQGSRLVRQLQJGXHWRWKHDQWLGD]]OHPLUURUHOHFWURO\WH(OHFWURO\WHPD\HVFDSHLIWKHJODVVLQDQDXWRPDWLFDQWLGD]]OHPLUURUEUHDNV7KHHOHFWURO\WHLVKDUPIXODQGFDXVHVLUULWDƃWLRQ,WPXVWQRWFRPHLQWRFRQWDFWZLWK\RXUVNLQH\HVUHVSLUDWRU\RUJDQVRUFORWKLQJRUEHVZDOORZHG#,I\RXFRPHLQWRFRQWDFWZLWKHOHFWURƃO\WHREVHUYHWKHIROORZLQJ=5LQVHWKHHOHFWURO\WHIURP\RXUVNLQDQGVHHNPHGLFDODWWHQWLRQLPPHGLƃDWHO\=,IHOHFWURO\WHFRPHVLQWRFRQWDFWZLWK\RXUH\HVULQVHWKHPWKRUƃRXJKO\ZLWKFOHDQZDWHUDQGVHHNPHGLFDODWWHQWLRQLPPHGLDWHO\=,IWKHHOHFWURO\WHLVVZDOORZHGLPPHGLDWHO\ULQVH\RXUPRXWKRXWWKRURXJKO\'RQRWLQGXFHYRPLWLQJ6HHNPHGLFDODWWHQWLRQLPPHGLDWHO\=,PPHGLDWHO\FKDQJHRXWRIFORWKLQJZKLFKKDVFRPHLQWRFRQWDFWZLWKHOHFWURO\WH=,IDQDOOHUJLFUHDFWLRQRFFXUVVHHNPHGLFDODWWHQWLRQLPPHGLDWHO\7KHLQVLGHUHDUYLHZPLUURUDQGWKHRXWVLGHPLUƃURURQWKHGULYHUVVLGHDXWRPDWLFDOO\JRLQWRDQWLGD]]OHPRGHLIOLJKWIURPDKHDGODPSKLWVWKHVHQVRURQWKHLQVLGHUHDUYLHZPLUURU6\VWHPOLPLWDWLRQV7KHV\VWHPGRHVQRWJRLQWRDQWLGD]]OHPRGHLQWKHIROORZLQJVLWXDWLRQV=WKHHQJLQHLVVZLWFKHGRII=UHYHUVHJHDULVHQJDJHG=WKHLQWHULRUOLJKWLQJLVVZLWFKHGRQ)XQFWLRQRIWKHSDVVHQJHURXWVLGHPLUURUSDUNLQJSRVLWLRQ%7KHSDUNLQJSRVLWLRQLVDYDLODEOHRQO\LQYHKLƃFOHVZLWKDPHPRU\IXQFWLRQ7KHSDUNLQJSRVLWLRQPDNHVSDUNLQJHDVLHU7KHSDVVHQJHURXWVLGHPLUURUWLOWVGRZQZDUGVDQGVKRZVWKHUHDUZKHHORQWKHIURQWSDVVHQJHUVLGHLQWKHIROORZLQJVLWXDWLRQV=WKHSDUNLQJSRVLWLRQLVVWRUHGĺSDJH=WKHSDVVHQJHUPLUURULVVHOHFWHG=UHYHUVHJHDULVHQJDJHG /LJKWDQGVLJKW$

$7KHSDVVHQJHURXWVLGHPLUURUPRYHVEDFNWRLWVRULJLQDOSRVLWLRQLQWKHIROORZLQJVLWXDWLRQV=LI\RXVKLIWWKHWUDQVPLVVLRQWRDQRWKHUWUDQVƃPLVVLRQSRVLWLRQ=DWVSHHGVJUHDWHUWKDQNPK=LI\RXSUHVVWKHEXWWRQIRUWKHRXWVLGHPLUURURQWKHGULYHUVVLGH6WRULQJWKHSDUNLQJSRVLWLRQRIWKHSDVVHQJHURXWVLGHPLUURUXVLQJUHYHUVHJHDU6WRULQJ#3UHVVEXWWRQWRVHOHFWWKHSDVVHQJHURXWƃVLGHPLUURU#(QJDJHUHYHUVHJHDU#0RYHWKHSDVVHQJHURXWVLGHPLUURULQWRWKHGHVLUHGSDUNLQJSRVLWLRQXVLQJEXWWRQ&DOOLQJXS#3UHVVEXWWRQWRVHOHFWWKHSDVVHQJHURXWƃVLGHPLUURU#(QJDJHUHYHUVHJHDU7KHSDVVHQJHURXWVLGHPLUURUPRYHVWRWKHVWRUHGSDUNLQJSRVLWLRQ$FWLYDWLQJGHDFWLYDWLQJWKHDXWRPDWLFPLUURUIROGLQJIXQFWLRQ0XOWLPHGLDV\VWHP,.6HWWLQJV.9HKLFOH#$FWLYDWHRUGHDFWLYDWH$XWRIROGLQPLUURUV/LJKWDQGVLJKW $

2SHUDWLQJWKHVXQYLVRUV8VLQJWKHVLQJOHVXQYLVRU#*ODUHIURPWKHIURQWIROGVXQYLVRUGRZQ#*ODUHIURPWKHVLGHVZLQJVXQYLVRUWRWKHVLGH /LJKWDQGVLJKW

$2YHUYLHZRIFOLPDWHFRQWUROV\VWHPV7+(50$7,&FRQWUROSDQHORYHUYLHZ7KHLQGLFDWRUODPSVLQWKHEXWWRQVXdlrZDQG;LQGLFDWHWKDWWKHFRUUHVSRQGLQJIXQFWLRQLVDFWLYDWHG6HWVWKHWHPSHUDWXUH%XWWRQZLWKRXWIXQFWLRQ-6HWVWKHDLUIORZRUVZLWFKHVRIIFOLPDWHFRQWUROX6HWVFOLPDWHFRQWUROWRDXWRPDWLFPRGHĺSDJHd'HPLVWVWKHZLQGVFUHHQl6ZLWFKHVWKHUHDUZLQGRZKHDWHURQRIIr6ZLWFKHVDLUUHFLUFXODWLRQPRGHRQRIIĺSDJHZ6ZLWFKHVWKH$&IXQFWLRQRQRIIĺSDJH%XWWRQZLWKRXWIXQFWLRQ$6HWVWKHDLUGLVWULEXWLRQ7+(5027521,&FRQWUROSDQHORYHUYLHZ7KHLQGLFDWRUODPSVLQWKHEXWWRQVXdlrVDQG;LQGLFDWHWKDWWKHFRUUHVSRQGLQJIXQFWLRQLVDFWLYDWHG6HWVWKHGULYHUVLGHWHPSHUDWXUH6HWVWKHDLUGLVWULEXWLRQ-6HWVWKHDLUIORZRUVZLWFKHVRIIFOLPDWHFRQWUROX6HWVFOLPDWHFRQWUROWRDXWRPDWLFPRGHĺSDJHd'HPLVWVWKHZLQGVFUHHQl6ZLWFKHVWKHUHDUZLQGRZKHDWHURQRIIr6ZLWFKHVDLUUHFLUFXODWLRQPRGHRQRIIĺSDJHV6ZLWFKHVWKH$&IXQFWLRQRQRIIĺSDJH&OLPDWHFRQWURO $

$6ZLWFKHVWKHUHVLGXDOKHDWRQRIIĺSDJH$FWLYDWHVRUGHDFWLYDWHVV\QFKURQLVDƃWLRQĺSDJH$6HWVWKHIURQWSDVVHQJHUVLGHWHPSHUDƃWXUH2SHUDWLQJWKHFOLPDWHFRQWUROV\VWHP6ZLWFKLQJFOLPDWHFRQWURORQRII#7RVZLWFKRQVHWWKHDLUIORZWROHYHORUKLJKHUXVLQJWKH-EXWWRQ#7RVZLWFKRIIVHWWKHDLUIORZWROHYHOXVLQJWKH-EXWWRQ%,IFOLPDWHFRQWUROLVVZLWFKHGRIIWKHZLQƃGRZVPD\PLVWXSPRUHTXLFNO\6ZLWFKRIIFOLPDWHFRQWURORQO\EULHIO\$FWLYDWLQJGHDFWLYDWLQJWKH$&IXQFWLRQYLDWKHFRQWUROSDQHO7KH$&IXQFWLRQKHDWVFRROVDQGGHKXPLGLILHVWKHYHKLFOHVLQWHULRUDLU#3UHVVEXWWRQZV'HDFWLYDWHWKH$&IXQFWLRQRQO\EULHIO\RWKHUƃZLVHWKHZLQGRZVFDQPLVWXSPRUHTXLFNO\&RQGHQVDWLRQPD\GULSIURPWKHXQGHUVLGHRIWKHYHKLFOHZKHQFRROLQJPRGHLVDFWLYH7KLVLVQRWDVLJQWKDWWKHUHLVDPDOIXQFWLRQ7KHFRPSUHVVRUIXQFWLRQLVGHDFWLYDWHGLQWKHIROORZLQJFDVHV=ZKHQGULYLQJXSKLOORUGRZQKLOODWDJUDGLHQWRIPRUHWKDQ=ZKHQGULYLQJLQDFURVVDQLQFOLQHRIPRUHWKDQ&DOOLQJXSWKHDLUFRQGLWLRQLQJPHQX&DOOLQJXSWKHDLUFRQGLWLRQLQJPHQXXVLQJWKHPXOWLPHGLDV\VWHP#6HOHFWWKHWHPSHUDWXUHGLVSOD\DWWKHERWWRPHGJHRIWKHVFUHHQ&DOOLQJXSWKHDLUFRQGLWLRQLQJPHQXXVLQJWKHEXWWRQRQWKHFRQWUROSDQHO#3UHVVWKHDEXWWRQRQWKHFRQWUROSDQHO%7KHEXWWRQRQWKHFRQWUROSDQHOLVQRWDYDLODƃEOHRQDOOHTXLSPHQWYDULDQWV,QWKLVFDVHWKHDLUFRQGLWLRQLQJPHQXFDQRQO\EHFDOOHGXSXVLQJWKHPXOWLPHGLDV\VWHP$FWLYDWLQJGHDFWLYDWLQJWKH$&IXQFWLRQXVLQJWKHPXOWLPHGLDV\VWHP7KH$&IXQFWLRQKHDWVFRROVDQGGHKXPLGLILHVWKHYHKLFOHVLQWHULRUDLU#&DOOLQJXSWKHDLUFRQGLWLRQLQJPHQXĺSDJH#6HOHFW$&'HSHQGLQJRQWKHSUHYLRXVVWDWXVWKHIXQFƃWLRQLVDFWLYDWHGRUGHDFWLYDWHG6HWWLQJFOLPDWHFRQWUROWRDXWRPDWLFPRGH,QDXWRPDWLFPRGHWKHVHWWHPSHUDWXUHLVFRQƃWUROOHGDQGPDLQWDLQHGDWDFRQVWDQWOHYHOE\WKHDLUVXSSO\#3UHVVWKHXEXWWRQ#7RVZLWFKWRPDQXDOPRGHSUHVVWKHRUXEXWWRQ &OLPDWHFRQWURO$

$,QDXWRPDWLFPRGH\RXFDQFKRRVHEHWZHHQILYHGLIIHUHQWDLUTXDQWLWLHVXVLQJWKH-EXWWRQ$XWRPDWLFPRGHLVUHWDLQHG$LUGLVWULEXWLRQVHWWLQJV7KHV\PEROVRQWKHGLVSOD\LQGLFDWHZKLFKYHQWVWKHDLUIORZLVEHLQJGLUHFWHGWKURXJK=aGHIURVWHUDQGVLGHDLUYHQWV=FHQWUHDQGVLGHDLUYHQWV=IRRWZHOODQGVLGHDLUYHQWV=FHQWUHVLGHDQGIRRWZHOOYHQWV=GHIURVWHUIRRWZHOODQGVLGHDLUYHQWV=DOOYHQWV=GHIURVWHUPLGGOHDQGVLGHDLUYHQWV=¢DXWRPDWLFDLUGLVWULEXWLRQ6HWWLQJWKHDLUGLVWULEXWLRQ#&DOOXSWKHDLUFRQGLWLRQLQJPHQXĺSDJH#7RVHWWKHDLUGLVWULEXWLRQVHOHFWaRU#6HWWKHDLUIORZ%6HYHUDODLUGLVWULEXWLRQRSWLRQVFDQEHVHOHFƃWHGDWWKHVDPHWLPHIRUH[DPSOHWRVHWWKHWHPSHUDWXUHDLUFRQGLWLRQLQJIRUWKHZLQGƃVFUHHQDQGWKHIRRWZHOOVVLPXOWDQHRXVO\$FWLYDWLQJGHDFWLYDWLQJWKHFOLPDWHFRQWUROV\QFKURQLVDWLRQIXQFWLRQYLDWKHFRQWUROSDQHO&OLPDWHFRQWUROFDQEHVHWFHQWUDOO\XVLQJWKHV\QFKURQLVDWLRQIXQFWLRQ7KHWHPSHUDWXUHDQGDLUGLVWULEXWLRQVHWWLQJIRUWKHGULYHUVLGHLVDGRSƃWHGDXWRPDWLFDOO\IRUWKHIURQWSDVVHQJHUVLGH#3UHVVEXWWRQ7KHV\QFKURQLVDWLRQIXQFWLRQLVGHDFWLYDWHGLIWKHVHWWLQJVIRURQHRIWKHRWKHUFOLPDWH]RQHVDUHFKDQJHG$FWLYDWLQJGHDFWLYDWLQJWKHFOLPDWHFRQWUROV\QFKURQLVDWLRQIXQFWLRQXVLQJWKHPXOWLPHƃGLDV\VWHP&OLPDWHFRQWUROFDQEHVHWFHQWUDOO\XVLQJWKHV\QFKURQLVDWLRQIXQFWLRQ7KHWHPSHUDWXUHVHWƃWLQJLVDXWRPDWLFDOO\DGRSWHGIRUDOOFOLPDWH]RQHV#&DOOLQJXSWKHDLUFRQGLWLRQLQJPHQXĺSDJH#6HOHFW6<1&'HSHQGLQJRQWKHSUHYLRXVVWDWXVWKHIXQFƃWLRQLVDFWLYDWHGRUGHDFWLYDWHG'HPLVWLQJWKHZLQGRZV:LQGRZVPLVWHGXSRQWKHLQVLGH#3UHVVWKHXEXWWRQ#,IWKHZLQGRZVFRQWLQXHWRPLVWXSSUHVVWKHdEXWWRQ:LQGRZVPLVWHGXSRQWKHRXWVLGH#6ZLWFKRQWKHZLQGVFUHHQZLSHUV#3UHVVWKHXEXWWRQ&OLPDWHFRQWURO $

$6ZLWFKLQJDLUUHFLUFXODWLRQPRGHRQRII#3UHVVWKHrEXWWRQ7KHLQWHULRUDLUZLOOEHUHFLUFXODWHG$LUUHFLUFXODWLRQPRGHDXWRPDWLFDOO\VZLWFKHVEDFNWRIUHVKDLUPRGHDIWHUVRPHWLPHGHSHQGƃLQJRQWKH$&IXQFWLRQDLUFRQGLWLRQLQJV\VWHPLVVZLWFKHGRQRURII%,IDLUUHFLUFXODWLRQPRGHLVVZLWFKHGRQWKHZLQGRZVPD\PLVWXSPRUHTXLFNO\6ZLWFKRQDLUUHFLUFXODWLRQPRGHRQO\EULHIO\6ZLWFKLQJWKHUHVLGXDOKHDWRQRII5HTXLUHPHQWV=7KHYHKLFOHLVSDUNHG,WLVSRVVLEOHWRPDNHXVHRIWKHUHVLGXDOKHDWIURPWKHHQJLQHWRFRQWLQXHKHDWLQJRUYHQWLODWƃLQJWKHIURQWFRPSDUWPHQWRIWKHYHKLFOHIRUDSSUR[LPDWHO\PLQXWHV#7RVZLWFKRQSUHVVWKHVEXWWRQ5HVLGXDOKHDWLVVZLWFKHGRIIDXWRPDWLFDOO\$LUYHQWV$GMXVWLQJWKHIURQWDLUYHQWV&:$51,1*Ƅ5LVNRIEXUQVIURVWELWHGXHWRQRWPDLQWDLQLQJDVXIILFLHQWGLVWDQFHWRWKHDLUYHQWV9HU\KRWRUYHU\FROGDLUFDQIORZIURPWKHDLUYHQWV7KLVFRXOGUHVXOWLQEXUQVRUIURVWELWHLQWKHLPPHGLDWHYLFLQLW\RIWKHDLUYHQWV#$OZD\VHQVXUHWKDWDOOYHKLFOHRFFXƃSDQWVPDLQWDLQDVXIILFLHQWGLVWDQFHWRWKHDLUYHQWV#,IQHFHVVDU\UHGLUHFWWKHDLUIORZWRDQRWKHUDUHDRIWKHYHKLFOHLQWHULRU#7RRSHQRUFORVHWXUQWKHFHQWUHRIWKHDLUYHQWWRWKHOHIWRUULJKWDVIDUDVLWZLOOJR#7RDGMXVWWKHDLUGLUHFWLRQKROGDLUYHQWLQWKHFHQWUHDQGPRYHLWXSRUGRZQRUWRWKHOHIWRUULJKW &OLPDWHFRQWURO$

$GMXVWLQJWKHUHDUDLUYHQWV#7RRSHQRUFORVHWXUQFRQWUROOHUWRWKHOHIWRUULJKWDVIDUDVLWZLOOJR#7RDGMXVWWKHDLUGLUHFWLRQKROGUHDUDLUYHQWLQWKHFHQWUHDQGPRYHLWXSRUGRZQRUWRWKHOHIWRUULJKW&OLPDWHFRQWURO 

$'ULYLQJ6ZLWFKLQJRQWKHSRZHUVXSSO\RULJQLWLRQXVLQJWKHVWDUWVWRSEXWWRQ&:$51,1*5LVNRIDFFLGHQWDQGLQMXU\GXHWRFKLOGUHQOHIWXQDWWHQGHGLQWKHYHKLFOH,IFKLOGUHQDUHOHIWXQDWWHQGHGLQWKHYHKLFOHWKH\FRXOG=RSHQGRRUVWKHUHE\HQGDQJHULQJRWKHUSHUVRQVRUURDGXVHUV=JHWRXWRIWKHYHKLFOHDQGEHKLWE\RQFRPLQJWUDIILF=RSHUDWHYHKLFOHHTXLSPHQWDQGEHFRPHWUDSSHGIRUH[DPSOH,QDGGLWLRQFKLOGUHQFRXOGDOVRVHWWKHYHKLƃFOHLQPRWLRQIRUH[DPSOHE\=UHOHDVLQJWKHSDUNLQJEUDNH=VKLIWLQJWKHDXWRPDWLFWUDQVPLVVLRQRXWRISDUNSRVLWLRQ]RUVKLIWLQJPDQXDOWUDQVƃPLVVLRQLQWRLGOHSRVLWLRQ=VWDUWLQJWKHHQJLQH#1HYHUOHDYHFKLOGUHQDQGDQLPDOVXQDWƃWHQGHGLQWKHYHKLFOH#:KHQOHDYLQJWKHYHKLFOHDOZD\VWDNHWKHNH\ZLWK\RXDQGORFNWKHYHKLFOH7KLVDOVRDSSOLHVWRWKH'LJLWDO9HKLFOH.H\VWLFNHUDQGPRELOHSKRQHVLIWKH'LJLWDO9HKLFOH.H\LQWKHVPDUWSKRQHIXQFWLRQLVDFWLYDWHGYLDWKH0HUFHGHVPHFRQQHFWZHEDSS#.HHSWKHYHKLFOHNH\RXWRIUHDFKRIFKLOGUHQ7KLVDOVRDSSOLHVWRWKH'LJLWDO9HKLFOH.H\VWLFNHUDQGPRELOHSKRQHVLIWKH'LJLWDO9HKLFOH.H\LQWKHVPDUWƃSKRQHIXQFWLRQLVDFWLYDWHGYLDWKH0HUFHGHVPHFRQQHFWZHEDSS&:$51,1*5LVNRIH[KDXVWJDVSRLVRQLQJ&RPEXVWLRQHQJLQHVHPLWSRLVRQRXVH[KDXVWJDVHVVXFKDVFDUERQPRQR[LGH,QKDOLQJWKHVHH[KDXVWJDVHVFDXVHVSRLVRQLQJ#1HYHUOHDYHWKHHQJLQHUXQQLQJLQDQHQFORVHGVSDFHZLWKRXWVXIILFLHQWYHQWLƃODWLRQ&:$51,1*5LVNRIILUHFDXVHGE\IODPƃPDEOHPDWHULDORQWKHH[KDXVWV\VWHP)ODPPDEOHPDWHULDOVEURXJKWLQE\HLWKHUDQLƃPDOVRUHQYLURQPHQWDOLQIOXHQFHVPD\LJQLWHLIWKH\FRPHLQWRFRQWDFWZLWKKRWSDUWVRIWKHHQJLQHRUH[KDXVWV\VWHP#7KHUHIRUHFKHFNUHJXODUO\WKDWWKHUHDUHQRIODPPDEOHPDWHULDOVLQWKHHQJLQHFRPSDUWPHQWRURQWKHH[KDXVWV\VWHP5HTXLUHPHQWV=WKHNH\LVORFDWHGLQWKHYHKLFOHDQGWKHNH\EDWWHU\LVQRWGLVFKDUJHG=RUDQDOUHDG\DFWLYDWHG'LJLWDO9HKLFOH.H\VWLFNHULVORFDWHGLQWKHPDUNHGVSDFHĺSDJH=RUWKHPRELOHSKRQHLVORFDWHGLQWKHPDUNHGVSDFHDQGWKH'LJLWDO9HKLFOH.H\IXQFWLRQ 'ULYLQJDQGSDUNLQJ$

$KDVEHHQDFWLYDWHGYLDWKH0HUFHGHVPHFRQƃQHFWZHEDSSĺSDJH#7RVZLWFKRQWKHSRZHUVXSSO\SUHVVEXWƃWRQRQFH<RXFDQDFWLYDWHWKHZLQGVFUHHQZLSHUIRUH[DPSOH7KHSRZHUVXSSO\LVVZLWFKHGRIIDJDLQLIWKHIROƃORZLQJFRQGLWLRQVDUHPHW=\RXRSHQWKHGULYHUVGRRU=\RXSUHVVEXWWRQWZLFH#7RVZLWFKRQWKHLJQLWLRQSUHVVEXWWRQWZLFH7KHLQGLFDWRUODPSVLQWKHLQVWUXPHQWFOXVWHUOLJKWXS7KHLJQLWLRQLVVZLWFKHGRIIDJDLQLIRQHRIWKHIROORZLQJFRQGLWLRQVLVPHW=\RXGRQRWVWDUWWKHYHKLFOHZLWKLQPLQXWHV7KHWUDQVPLVVLRQLVLQSRVLWLRQ]RU7KHHOHFWULFSDUNLQJEUDNHLVDSSOLHG=\RXSUHVVEXWWRQRQFH6WDUWLQJWKHYHKLFOH6WDUWLQJWKHYHKLFOHZLWKWKHVWDUWVWRSEXWƃWRQ5HTXLUHPHQWV=WKHNH\LVORFDWHGLQWKHYHKLFOHDQGWKHNH\EDWWHU\LVQRWGLVFKDUJHG=RUDQDOUHDG\DFWLYDWHG'LJLWDO9HKLFOH.H\VWLFNHULVORFDWHGLQWKHPDUNHGVSDFHĺSDJH=RUWKHPRELOHSKRQHLVORFDWHGLQWKHPDUNHGVSDFHDQGWKH'LJLWDO9HKLFOH.H\IXQFWLRQKDVEHHQDFWLYDWHGYLDWKH0HUFHGHVPHFRQƃQHFWZHEDSSĺSDJH#9HKLFOHVZLWKDXWRPDWLFWUDQVPLVVLRQVKLIWWKHWUDQVPLVVLRQWRSRVLWLRQ]RU\#GHSUHVVWKHEUDNHSHGDODQGSUHVVEXWWRQRQFH#,IWKHYHKLFOHGRHVQRWVWDUWVZLWFKRIIQRQHVVHQWLDOFRQVXPHUVDQGSUHVVEXWWRQRQFH'ULYLQJDQGSDUNLQJ $

$,IWKHYHKLFOHVWLOOGRHVQRWVWDUWRQHRIWKHIROƃORZLQJGLVSOD\PHVVDJHVDSSHDUVLQWKHPXOWLƃIXQFWLRQGLVSOD\#3ODFHWKHNH\LQWKHPDUNHGVSDFH6HH2ZQHUV0DQXDOVWDUWWKHYHKLFOHLQHPHUJHQF\RSHUDWLRQPRGHĺSDJHRU#.H\QRWGHWHFWHG3ODFHVPDUWSKRQHLQFKDUJLQJEUDFNHWSODFHWKHPRELOHSKRQHLQWKHPDUNHGVSDFHĺSDJH<RXFDQVZLWFKRIIWKHHQJLQHZKLOHGULYLQJE\SUHVVLQJEXWWRQIRUDERXWWKUHHVHFRQGV%HVXUHWRREVHUYHWKHVDIHW\QRWHVXQGHU'ULYLQJWLSV6WDUWLQJYHKLFOHZLWKPRELOHSKRQHRU'LJLWDO9HKLFOH.H\VWLFNHU5HTXLUHPHQWV=WKHYHKLFOHLVHTXLSSHGZLWKWKH'LJLWDO9HKLƃFOH.H\IXQFWLRQDQGWKHVHUYLFHZDVDFWLYDƃWHG=D'LJLWDO9HKLFOH.H\VWLFNHURU=DVXLWDEOHPRELOHSKRQHZLWK1)&DHULDOWKH'LJLWDO9HKLFOH.H\IXQFWLRQLVDFWLƃYDWHGYLDWKH0HUFHGHVPHFRQQHFWZHEDSSKWWSZZZPHUFHGHVPHDVXIILFLHQWFKDUJHOHYHORQWKHPRELOHSKRQH2QVRPHPRELOHSKRQHVWKHIXQFWLRQLVDOVRDYDLODEOHZKHQWKHEDWWHU\LVGLVFKDUJHG%<RXFDQFKHFNWKHVXLWDELOLW\RI\RXUPRELOHSKRQHE\HQWHULQJWKHSKRQHQXPEHUDWKWWSZZZPHUFHGHVPH,QIRUPDWLRQDERXWVXLWDEOHPRELOHSKRQHVFDQEHREWDLQHGIURP\RXU0HUFHGHV%HQ]VHUYLFHFHQWUHRUDWKWWSZZZPHUFHGHVEHQ]FRPFRQQHFW%0HUFHGHV%HQ]UHFRPPHQGVWKDW\RXFDUU\WKHHPHUJHQF\NH\LQFDVHRIIXQFWLRQUHVWULFWLRQV%7KHIXQFWLRQLVRQO\DYDLODEOHLQFRPELQDWLRQZLWK0HUFHGHVPHFRQQHFWDQGRQO\LQFHUƃWDLQFRXQWULHV%3URWHFWLYHFDVHVDURXQGWKHPRELOHSKRQHFDQLPSDLUWKHUDQJHRIIXQFWLRQV#,IQHFHVVDU\PDNHVXUHWKDWWKHFKDUJHOHYHORIWKHPRELOHSKRQHLVVXIILFLHQW,IQHFHVƃVDU\FKDUJHWKHPRELOHSKRQHEHIRUHVWDUWƃLQJWKHMRXUQH\,QLWLDOVWDUW#0DNHVXUHWKDWWKHUHLVDYDOLGYHKLFOHNH\LQWKHYHKLFOH#3ODFHWKHPRELOHSKRQHRUWKH'LJLWDO9HKLFOH.H\VWLFNHULQWKHPLGGOHRIWKHPDUNHGVSDFH#'HSUHVVWKHEUDNHSHGDODQGVWDUWWKHYHKLFOHXVLQJWKHVWDUWVWRSEXWWRQ%7KHNH\LVQRWQHHGHGIRUDQ\IXUWKHUVWDUWV 'ULYLQJDQGSDUNLQJ$

$$Q\IXUWKHUVWDUWV#3ODFHWKHPRELOHSKRQHRUWKH'LJLWDO9HKLFOH.H\VWLFNHULQWKHPLGGOHRIWKHPDUNHGVSDFHDQGOHDYHLWWKHUHGXULQJWKHMRXUƃQH\#'HSUHVVWKHEUDNHSHGDODQGVWDUWWKHYHKLFOHXVLQJWKHVWDUWVWRSEXWWRQ7KH'LJLWDO9HKLFOH.H\VHUYLFHFDQEHGHDFWLƃYDWHGLQ0HUFHGHVPHFRQQHFWDWKWWSZZZPHUFHGHVPH7KHIXQFWLRQLVWKHQGHDFWLƃYDWHGLQWKHVPDUWSKRQHYLDDQRQOLQHFRQQHFƃWLRQ,IFRQQHFWLRQWRWKH,QWHUQHWLVQRWSRVVLEOHHJDIWHUWKHPRELOHSKRQHKDVEHHQVWROHQWKHNH\IXQFWLRQFDQEHGHDFWLYDWHGDWD0HUFHGHV%HQ]VHUYLFHFHQWUH6WDUWLQJWKHYHKLFOHLQHPHUJHQF\RSHUDWLRQPRGH,IWKHYHKLFOHGRHVQRWVWDUWDQGWKH3ODFHWKHNH\LQWKHPDUNHGVSDFH6HH2ZQHUV0DQXDOGLVSOD\PHVVDJHDSSHDUVLQWKHPXOWLIXQFWLRQGLVSOD\\RXFDQVWDUWWKHYHKLFOHLQHPHUJHQF\RSHUDWLRQPRGH0DUNHGVSDFHH[DPSOHZLWKFXSKROGHUZLWKRXWFRYHU#2SHQWKHFRYHURIPDUNHGVSDFHLIQHFHVƃVDU\#0DNHVXUHWKDWPDUNHGVSDFHLVHPSW\#5HPRYHNH\IURPWKHNH\ULQJ#3ODFHNH\LQPDUNHGVSDFHRQWKHV\PERO7KHYHKLFOHZLOOVWDUWDIWHUDVKRUWWLPH,I\RXUHPRYHNH\IURPPDUNHGVSDFHWKHHQJLQHFRQWLQXHVUXQQLQJ)RUIXUWKHUYHKLFOHVWDUWVKRZHYHUNH\PXVWEHORFDƃWHGLQPDUNHGVSDFHRQV\PEROGXULQJWKHHQWLUHMRXUQH\#+DYHWKHNH\FKHFNHGDWDTXDOLILHGVSHƃFLDOLVWZRUNVKRS,IWKHYHKLFOHGRHVQRWVWDUW#SODFHNH\LQPDUNHGVSDFHDQGOHDYHLWWKHUH#GHSUHVVWKHEUDNHSHGDO#VWDUWWKHYHKLFOHXVLQJWKHVWDUWVWRSEXWWRQ%<RXFDQDOVRVZLWFKRQWKHSRZHUVXSSO\RUWKHLJQLWLRQZLWKWKHVWDUWVWRSEXWWRQ'ULYLQJDQGSDUNLQJ $

$6WDUWLQJWKHYHKLFOHYLD5HPRWH2QOLQHVHUYƃLFHV&RROLQJRUKHDWLQJWKHYHKLFOHLQWHULRUEHIRUHVWDUWLQJDMRXUQH\%7KLVIXQFWLRQLVQRWDYDLODEOHLQDOOFRXQWULHV,I\RXVWDUWWKHYHKLFOHYLD\RXUVPDUWSKRQHWKHSUHYLRXVO\VHOHFWHGDLUFRQGLWLRQLQJVHWWLQJLVDFWLYH(QVXUHWKHIROORZLQJEHIRUHVWDUWLQJWKHHQJLQH=WKHOHJDOVWLSXODWLRQVLQWKHDUHDZKHUH\RXUYHKLFOHLVSDUNHGDOORZHQJLQHVWDUWLQJYLDVPDUWSKRQH=LWLVVDIHWRVWDUWDQGUXQWKHHQJLQHZKHUH\RXUYHKLFOHLVSDUNHG=WKHIXHOWDQNLVVXIILFLHQWO\ILOOHG=WKHVWDUWHUEDWWHU\LVVXIILFLHQWO\FKDUJHG%<RXFDQDOVRVHWWKHWHPSHUDWXUHZLWK\RXUVPDUWSKRQH,QIRUPDWLRQRQ0HUFHGHVPHFRQQHFWDQGRWKHUVHUYLFHVKWWSZZZPHUFHGHVPH&KDUJLQJWKHEDWWHU\EHIRUHFRPPHQFLQJ\RXUMRXUQH\%7KLVIXQFWLRQLVQRWDYDLODEOHLQDOOFRXQWULHV=,IWKHYHKLFOHEDWWHU\LVGLVFKDUJHG\RXUHFHLYHDPHVVDJHRQ\RXUVPDUWSKRQH=<RXFDQWKHQVWDUWWKHYHKLFOHZLWKWKHVPDUWSKRQHWRFKDUJHWKHEDWWHU\=7KHYHKLFOHLVDXWRPDWLFDOO\VZLWFKHGRIIDIWHUWHQPLQXWHV(QVXUHWKHIROORZLQJEHIRUHVWDUWLQJWKHHQJLQH=WKHOHJDOVWLSXODWLRQVLQWKHDUHDZKHUH\RXUYHKLFOHLVSDUNHGDOORZHQJLQHVWDUWLQJYLDVPDUWSKRQH=LWLVVDIHWRVWDUWDQGUXQWKHHQJLQHZKHUH\RXUYHKLFOHLVSDUNHG=WKHIXHOWDQNLVVXIILFLHQWO\ILOOHG6WDUWLQJWKHYHKLFOH&:$51,1*5LVNRIFUXVKLQJRUHQWUDSƃPHQWGXHWRXQLQWHQWLRQDOVWDUWLQJRIWKHHQJLQH/LPEVFRXOGEHFUXVKHGRUWUDSSHGLIWKHHQJLQHLVVWDUWHGXQLQWHQWLRQDOO\GXULQJVHUYLFHRUPDLQWHQDQFHZRUN#$OZD\VVHFXUHWKHHQJLQHDJDLQVWXQLQƃWHQWLRQDOVWDUWLQJEHIRUHFDUU\LQJRXWPDLQWHQDQFHRUUHSDLUZRUN5HTXLUHPHQWV=SDUNSRVLWLRQ]LVVHOHFWHG=WKHDQWLWKHIWDODUPV\VWHPLVQRWDFWLYDWHG=WKHSDQLFDODUPLVQRWDFWLYDWHG=WKHKD]DUGZDUQLQJOLJKWVDUHVZLWFKHGRII=WKHERQQHWLVFORVHG=WKHGRRUVDUHFORVHGDQGORFNHG=WKHZLQGRZVDQGVOLGLQJVXQURRIDUHFORVHG#6WDUWWKHYHKLFOHXVLQJWKHVPDUWSKRQH 'ULYLQJDQGSDUNLQJ$

$=DIWHUHYHU\YHKLFOHVWDUWWKHHQJLQHUXQVIRUWHQPLQXWHV=\RXFDQFDUU\RXWDPD[LPXPRIWZRFRQVHFƃXWLYHVWDUWLQJDWWHPSWV7KHYHKLFOHPXVWEHVWDUWHGRQFHZLWKWKHNH\EHIRUHWU\LQJWRVWDUWWKHYHKLFOHDJDLQZLWKWKHVPDUWSKRQH=\RXFDQVWRSWKHYHKLFOHDJDLQDWDQ\WLPH=IXUWKHULQIRUPDWLRQFDQEHIRXQGLQWKHVPDUWSKRQHDSS6HFXULQJWKHHQJLQHDJDLQVWVWDUWLQJEHIRUHFDUU\LQJRXWPDLQWHQDQFHRUUHSDLUZRUN#VZLWFKRQWKHKD]DUGZDUQLQJOLJKWVRU#XQORFNWKHGRRUVRU#RSHQDVLGHZLQGRZRUWKHVOLGLQJVXQURRI5XQQLQJLQQRWHV7RSUHVHUYHWKHHQJLQHGXULQJWKHILUVWNP=GULYHDWYDU\LQJURDGVSHHGVDQGHQJLQHVSHHGV=GULYHLQGULYHSURJUDP&RU(=FKDQJHJHDUEHIRUHWKHUHYFRXQWHUQHHGOHLVÃRIWKHZD\WRWKHUHGDUHDRIWKHUHYFRXQƃWHU=GRQRWVKLIWGRZQDJHDUPDQXDOO\LQRUGHUWREUDNH=DYRLGRYHUVWUDLQLQJWKHYHKLFOHHJGULYLQJDWIXOOWKURWWOH=YHKLFOHVZLWKDXWRPDWLFWUDQVPLVVLRQGRQRWGHSUHVVWKHDFFHOHUDWRUSHGDOEH\RQGWKHSUHVVXUHSRLQWNLFNGRZQ=RQO\LQFUHDVHWKHHQJLQHVSHHGJUDGXDOO\DQGDFFHOHUDWHWKHYHKLFOHWRIXOOVSHHGDIWHUNP7KLVDOVRDSSOLHVZKHQWKHHQJLQHRUSDUWVRIWKHGULYHWUDLQKDYHEHHQUHSODFHG3OHDVHDOVRREVHUYHWKHIROORZLQJUXQQLQJLQQRWHV=,QFHUWDLQGULYLQJDQGGULYLQJVDIHW\V\VWHPVWKHVHQVRUVDGMXVWDXWRPDWLFDOO\ZKLOHDFHUƃWDLQGLVWDQFHLVGULYHQDIWHUWKHYHKLFOHKDVEHHQGHOLYHUHGRUDIWHUUHSDLUV)XOOV\VWHPHIIHFWLYHQHVVLVQRWDFKLHYHGXQWLOWKHHQGRIWKLVWHDFKLQSURFHVV=%UDNHOLQLQJVEUDNHGLVFVDQGW\UHVWKDWDUHHLWKHUQHZRUKDYHEHHQUHSODFHGRQO\DFKƃLHYHRSWLPXPEUDNLQJHIIHFWDQGJULSDIWHUVHYHUDOKXQGUHGNLORPHWUHVRIGULYLQJ&RPƃSHQVDWHIRUWKHUHGXFHGEUDNLQJHIIHFWE\DSSO\LQJJUHDWHUIRUFHWRWKHEUDNHSHGDO1RWHVRQGULYLQJ&:$51,1*5LVNRIDFFLGHQWGXHWRREMHFWVLQWKHGULYHUVIRRWZHOO2EMHFWVLQWKHGULYHUVIRRWZHOOPD\LPSHGHSHGDOWUDYHORUEORFNDGHSUHVVHGSHGDO7KLVMHRSDUGLVHVWKHRSHUDWLQJDQGURDGVDIHW\RIWKHYHKLFOH#6WRZDOOREMHFWVLQWKHYHKLFOHVHFXUHO\VRWKDWWKH\FDQQRWJHWLQWRWKHGULYHUVIRRWZHOO#$OZD\VILWWKHIORRUPDWVVHFXUHO\DQGDVSUHVFULEHGLQRUGHUWRHQVXUHWKDW'ULYLQJDQGSDUNLQJ $

$WKHUHLVDOZD\VVXIILFLHQWURRPIRUWKHSHGDOV#'RQRWXVHORRVHIORRUPDWVDQGGRQRWSODFHIORRUPDWVRQWRSRIRQHDQRWKHU&:$51,1*5LVNRIDFFLGHQWGXHWRXQVXLWDEOHIRRWZHDU2SHUDWLQJWKHSHGDOVPD\EHLPSDLUHGE\ZHDULQJXQVXLWDEOHIRRWZHDUHJ=SODWIRUPVKRHV=KLJKKHHOHGVKRHV=VOLSSHUV#$OZD\VZHDUVXLWDEOHIRRWZHDUZKHQGULYLQJVRWKDW\RXFDQRSHUDWHWKHSHGƃDOVVDIHO\&:$51,1*5LVNRIDFFLGHQWZKHQVZLWFKƃLQJRIIWKHLJQLWLRQZKHQGULYLQJ,I\RXVZLWFKRIIWKHLJQLWLRQZKLOHGULYLQJVDIHW\IXQFWLRQVDUHUHVWULFWHGRUQRORQJHUDYDLODEOH7KLVPD\DIIHFWWKHSRZHUVWHHULQJV\VWHPDQGWKHEUDNHIRUFHERRVWLQJIRUH[DPSOH<RXZLOOWKHQQHHGWRXVHFRQVLGHUDEO\PRUHIRUFHWRVWHHUDQGEUDNH#'RQRWVZLWFKRIIWKHLJQLWLRQZKLOHGULYƃLQJ&:$51,1*5LVNRIH[KDXVWJDVSRLVRQLQJ&RPEXVWLRQHQJLQHVHPLWSRLVRQRXVH[KDXVWJDVHVVXFKDVFDUERQPRQR[LGH,QKDOLQJWKHVHH[KDXVWJDVHVFDXVHVSRLVRQLQJ#1HYHUOHDYHWKHHQJLQHUXQQLQJLQDQHQFORVHGVSDFHZLWKRXWVXIILFLHQWYHQWLƃODWLRQ&:$51,1*5LVNRIVNLGGLQJDQGRIDQDFFLGHQWGXHWRVKLIWLQJGRZQRQVOLSSHU\URDGVXUIDFHV,I\RXVKLIWGRZQRQVOLSSHU\URDGVXUIDFHVWRLQFUHDVHWKHHQJLQHEUDNLQJHIIHFWWKHGULYHZKHHOVPD\ORVHWUDFWLRQ#'RQRWVKLIWGRZQRQVOLSSHU\URDGVXUƃIDFHVWRLQFUHDVHWKHHQJLQHEUDNLQJHIIHFW&'$1*(55LVNRIIDWDOLQMXULHVGXHWRSRLƃVRQRXVH[KDXVWJDVHV,IWKHWDLOSLSHLVEORFNHGRUVXIILFLHQWYHQWLODƃWLRQLVQRWSRVVLEOHSRLVRQRXVH[KDXVWJDVHVVXFKDVFDUERQPRQR[LGHPD\HQWHUWKHYHKLƃFOH7KLVLVWKHFDVHIRUH[DPSOHLIWKHYHKLƃFOHLVVWXFNLQVQRZ#:KHQWKHHQJLQHRUWKHVWDWLRQDU\KHDWHUDUHUXQQLQJNHHSWKHWDLOSLSHDQGWKHDUHDDURXQGWKHYHKLFOHFOHDURIVQRZ#2SHQDZLQGRZRQWKHVLGHRIWKHYHKLƃFOHIDFLQJWKHZLQGWRHQVXUHDQDGHƃTXDWHVXSSO\RIIUHVKDLU 'ULYLQJDQGSDUNLQJ$

$&:$51,1*5LVNRIDFFLGHQWGXHWRWKHEUDNHV\VWHPRYHUKHDWLQJ,I\RXOHDYH\RXUIRRWRQWKHEUDNHSHGDOZKHQGULYLQJWKHEUDNHV\VWHPPD\RYHUƃKHDW7KLVLQFUHDVHVWKHEUDNLQJGLVWDQFHDQGWKHEUDNHV\VWHPPD\HYHQIDLO#1HYHUXVHWKHEUDNHSHGDODVDIRRWUHVW#'RQRWGHSUHVVWKHEUDNHSHGDODQGWKHDFFHOHUDWRUSHGDODWWKHVDPHWLPHZKLOHGULYLQJ*127(&DXVLQJZHDUWRWKHEUDNHOLQLQJVE\SHUPDQHQWO\GHSUHVVLQJWKHEUDNHSHGDO#'RQRWSHUPDQHQWO\GHSUHVVWKHEUDNHSHGDOZKLOHGULYLQJ#7RXVHEUDNLQJHIIHFWRIWKHHQJLQHVKLIWWRDORZHUJHDULQJRRGWLPH*127('DPDJHWRWKHGULYHWUDLQDQGHQJLQHZKHQSXOOLQJDZD\#'RQRWZDUPXSWKHHQJLQHZKHQVWDƃWLRQDU\3XOODZD\LPPHGLDWHO\#$YRLGKLJKHQJLQHVSHHGVDQGIXOOWKURWƃWOHXQWLOWKHHQJLQHKDVUHDFKHGLWVRSHUDWLQJWHPSHUDWXUH#'RQRWDOORZWKHZKHHOVWRVSLQ*127('DPDJHWRWKHFDWDO\WLFFRQYHUWHUGXHWRQRQFRPEXVWHGIXHO7KHHQJLQHLVQRWUXQQLQJVPRRWKO\DQGLVPLVILULQJ1RQFRPEXVWHGIXHOPD\JHWLQWRWKHFDWDƃO\WLFFRQYHUWHU#2QO\GHSUHVVWKHDFFHOHUDWRUSHGDOVOLJKWO\#+DYHWKHFDXVHUHFWLILHGLPPHGLDWHO\DWDTXDOLILHGVSHFLDOLVWZRUNVKRS/LPLWHGEUDNLQJHIIHFWRQVDOWWUHDWHGURDGV=GXHWRVDOWEXLOGXSRQWKHEUDNHGLVFVDQGEUDNHSDGVWKHEUDNLQJGLVWDQFHFDQLQFUHDVHFRQVLGHUDEO\RUUHVXOWLQEUDNLQJRQO\RQRQHVLGH=PDLQWDLQDPXFKJUHDWHUVDIHGLVWDQFHWRWKHYHKLFOHLQIURQW7RSUHYHQWVDOWEXLOGXS=EUDNHRFFDVLRQDOO\ZKLOHSD\LQJDWWHQWLRQWRWKHWUDIILFFRQGLWLRQV=FDUHIXOO\GHSUHVVWKHEUDNHSHGDODWWKHHQGRIWKHMRXUQH\DQGZKHQVWDUWLQJWKHQH[WMRXUQH\(&2VWDUWVWRSIXQFWLRQ2SHUDWLRQRIWKH(&2VWDUWVWRSIXQFWLRQ7KHHQJLQHLVDXWRPDWLFDOO\VZLWFKHGRIILIWKHIROORZLQJFRQGLWLRQVDUHPHW=\RXEUDNHWKHYHKLFOHWRDVWDQGVWLOOLQWUDQVƃPLVVLRQSRVLWLRQ[RU\=LIDOOYHKLFOHFRQGLWLRQVIRUDQDXWRPDWLFHQJLQHVWRSDUHPHW'ULYLQJDQGSDUNLQJ $

$7KHÖV\PERODSSHDUVLQWKHPXOWLIXQFWLRQGLVSOD\ZKHQWKHYHKLFOHLVVWDWLRQDU\,IQRWDOOWKHYHKLFOHFRQGLWLRQVDUHPHWWKHÕV\PERODSSHDUVLQWKHPXOWLIXQFWLRQGLVSOD\7KHHQJLQHLVUHVWDUWHGDXWRPDWLFDOO\LI=\RXUHOHDVHWKHEUDNHSHGDOLQWUDQVPLVVLRQSRVLWLRQ[ZKHQWKH+2/'IXQFWLRQLVQRWDFWLYH=\RXVKLIWIURPWUDQVPLVVLRQSRVLWLRQ]=\RXHQJDJHWUDQVPLVVLRQSRVLWLRQ[RU^=\RXGHSUHVVWKHDFFHOHUDWRUSHGDO=\RXFKDQJHWKHYHKLFOHOHYHO=DQDXWRPDWLFHQJLQHVWDUWLVQHFHVVDU\,IWKHHQJLQHZDVVZLWFKHGRIIE\WKH(&2VWDUWVWRSIXQFWLRQDQG\RXOHDYHWKHYHKLFOHDZDUQƃLQJWRQHVRXQGV7KH9HKLFOHLVRSHUDWLRQDO6ZLWFKRIIWKHLJQLWLRQEHIRUHH[LWLQJGLVSOD\PHVVDJHDOVRDSSHDUVLQWKHPXOWLIXQFWLRQGLVƃSOD\,I\RXGRQRWVZLWFKRIIWKHLJQLWLRQWKHLJQLWLRQLVDXWRPDWLFDOO\VZLWFKHGRIIDIWHURQHPLQXWH6ZLWFKLQJWKH(&2VWDUWVWRSIXQFWLRQRIIRQ#3UHVVEXWWRQ$GLVSOD\DSSHDUVLQWKHLQVWUXPHQWFOXVWHUZKHQVZLWFKLQJWKH(&2VWDUWVWRSIXQFWLRQRIIRQ%$FRQWLQXRXVGLVSOD\DSSHDUVLQWKHLQVWUXƃPHQWFOXVWHUZKLOHWKH(&2VWDUWVWRSIXQFƃWLRQLVGHDFWLYDWHG)XQFWLRQRIWKH(&2GLVSOD\7KH(&2GLVSOD\VXPPDULVHVWKHGULYLQJVW\OHIURPWKHVWDUWRIWKHMRXUQH\WRLWVFRPSOHWLRQDQGDVVLVWV\RXLQDFKLHYLQJWKHPRVWHFRQRPLƃFDOGULYLQJVW\OH<RXFDQLQIOXHQFHFRQVXPSWLRQLI\RX=GULYHZLWKSDUWLFXODUFDUH=GULYHWKHYHKLFOHLQGULYHSURJUDP(=REVHUYHWKHJHDUVKLIWUHFRPPHQGDWLRQV7KHOHWWHULQJLQWKHVHJPHQWOLJKWVXSEULJKWO\WKHRXWHUHGJHOLJKWVXSDQGWKHVHJPHQWILOOVXSLQWKHIROORZLQJVLWXDWLRQV=VWHDG\VSHHG 'ULYLQJDQGSDUNLQJ$

$=JHQWOHGHFHOHUDWLRQDQGUROOLQJ=PRGHUDWHDFFHOHUDWLRQ7KHOHWWHULQJLQWKHVHJPHQWLVJUH\WKHRXWHUHGJHLVGDUNDQGWKHVHJPHQWHPSWLHVLQWKHIROƃORZLQJVLWXDWLRQV=IOXFWXDWLRQVLQVSHHG=KHDY\EUDNLQJ=VSRUW\DFFHOHUDWLRQ<RXKDYHGULYHQHFRQRPLFDOO\ZKHQ=WKHWKUHHVHJPHQWVDUHILOOXSFRPSOHWHO\DWWKHVDPHWLPH=WKHHGJHDURXQGDOOWKUHHVHJPHQWVOLJKWVXS7KHDGGLWLRQDOUDQJHDFKLHYHGDVDUHVXOWRI\RXUGULYLQJVW\OHLQFRPSDULVRQWRDGULYHUZLWKDYHU\VSRUW\GULYLQJVW\OHLVVKRZQLQWKHFHQWUHRIWKHGLVSOD\7KHUDQJHGLVSOD\HGGRHVQRWLQGLFDWHDIL[HGUHGXFWLRQLQFRQVXPSWLRQ'<1$0,&6(/(&7VZLWFK)XQFWLRQRIWKH'<1$0,&6(/(&7VZLWFK8VHWKH'<1$0,&6(/(&7VZLWFKWRFKDQJHEHWZHHQWKHIROORZLQJGULYHSURJUDPV=,,QGLYLGXDOLQGLYLGXDOVHWWLQJV=66SRUWVSRUW\GULYLQJVW\OH=&&RPIRUWFRPIRUWDEOHDQGHFRQRPLFDOGULYLQJVW\OH=((FRSDUWLFXODUO\HFRQRPLFDOGULYLQJVW\OH'HSHQGLQJRQWKHGULYHSURJUDPVHOHFWHGWKHIROORZLQJYHKLFOHFKDUDFWHULVWLFVZLOOFKDQJH=GULYHHQJLQHDQGWUDQVPLVVLRQPDQDJHPHQW$FWLYH'LVWDQFH$VVLVW',67521,&=(63=9HKLFOHVZLWK'<1$0,&%2'<&21752/VXVSHQVLRQ=VWHHULQJ6HOHFWLQJWKHGULYHSURJUDP#3UHVV'<1$0,&6(/(&7VZLWFKIRUZDUGVRUEDFNZDUGV7KHGULYHSURJUDPVHOHFWHGDSSHDUVLQWKHPXOWLIXQFWLRQGLVSOD\'ULYLQJDQGSDUNLQJ $

$&RQILJXULQJ'<1$0,&6(/(&7PXOWLPHGLDV\VWHP0XOWLPHGLDV\VWHP,.6HWWLQJV.'<1$0,&6(/(&76HWWLQJGULYHSURJUDP,#6HOHFW,QGLYLGXDOFRQILJ#6HOHFWDQGVHWDFDWHJRU\5HVWRULQJWKHODVWGULYHSURJUDP#6HOHFW5HVWRUHVHWWLQJV:KHQWKHIXQFWLRQLVDFWLYHDSURPSWDSSHDUVDIWHUWKHYHKLFOHLVVWDUWHGWRDVNLIWKHODVWGULYHSURJUDPVHWVKRXOGEHUHVWRUHG,IWKLVIXQFWLRQLVQRWDFWLYHWKH&RPIRUWGULYHSURJUDPZLOOEHVHWDXWRPDWLƃFDOO\ZKHQWKHYHKLFOHLVVWDUWHG#$FWLYDWHRUGHDFWLYDWHWKHIXQFWLRQ'LVSOD\LQJYHKLFOHGDWD0XOWLPHGLDV\VWHP,.9HKLFOHLQIR#6HOHFW9HKLFOH7KHYHKLFOHGDWDLVGLVSOD\HG'LVSOD\LQJHQJLQHGDWD0XOWLPHGLDV\VWHP,.9HKLFOHLQIR#6HOHFW(QJLQH7KHHQJLQHGDWDLVGLVSOD\HG%7KHYDOXHVIRUHQJLQHRXWSXWDQGHQJLQHWRUƃTXHPD\GHYLDWHIURPWKHQRPLQDOYDOXHV,WHPVWKDWFDQLQIOXHQFHWKLVDUHIRUH[DPƃSOH=(QJLQHVSHHG=6HDOHYHO=)XHOJUDGH=2XWVLGHWHPSHUDWXUH&DOOLQJXSIXHOFRQVXPSWLRQLQGLFDWRU0XOWLPHGLDV\VWHP,.9HKLFOHLQIR#6HOHFW&RQVXPSWLRQ$GLVSOD\ZLWKFXUUHQWDQGDYHUDJHFRQVXPSƃWLRQILJXUHVLVVKRZQ$XWRPDWLFWUDQVPLVVLRQ',5(&76(/(&7OHYHU)XQFWLRQRIWKH',5(&76(/(&7OHYHU&:$51,1*5LVNRIDFFLGHQWDQGLQMXU\GXHWRFKLOGUHQOHIWXQDWWHQGHGLQWKHYHKLFOH,IFKLOGUHQDUHOHIWXQDWWHQGHGLQWKHYHKLFOHWKH\FRXOG=2SHQGRRUVWKHUHE\HQGDQJHULQJRWKHUSHUVRQVRUURDGXVHUV=*HWRXWRIWKHYHKLFOHDQGEHKLWE\RQFRPLQJWUDIILF 'ULYLQJDQGSDUNLQJ$

$=2SHUDWHYHKLFOHHTXLSPHQW0RUHRYHUFKLOGUHQFRXOGDOVRVHWWKHYHKLFOHLQPRWLRQE\IRUH[DPSOH=5HOHDVLQJWKHSDUNLQJEUDNH=6KLIWLQJWKHWUDQVPLVVLRQRXWRISDUNSRVLWLRQ]=6WDUWLQJWKHHQJLQH#1HYHUOHDYHFKLOGUHQDQGDQLPDOVXQDWƃWHQGHGLQWKHYHKLFOH#:KHQOHDYLQJWKHYHKLFOHDOZD\VWDNHWKHNH\ZLWK\RXDQGORFNWKHYHKLFOH7KLVDOVRDSSOLHVWRPRELOHSKRQHVLIWKH'LJLWDO&DU.H\LQWKHVPDUWSKRQHIXQFWLRQLVDFWLYDWHGYLDWKH0HUFHGHVPHFRQQHFWZHEDSS#.HHSWKHNH\VRXWRIWKHUHDFKRIFKLOƃGUHQ7KLVDOVRDSSOLHVWRPRELOHSKRQHVLIWKH'LJLWDO&DU.H\LQWKHVPDUWSKRQHIXQFWLRQLVDFWLYDWHGYLDWKH0HUFHGHVPHFRQQHFWZHEDSS&:$51,1*5LVNRIDFFLGHQWGXHWRLQFRUƃUHFWJHDUVKLIWLQJ,IWKHHQJLQHVSHHGLVKLJKHUWKDQWKHLGOHVSHHGDQG\RXHQJDJHWKHWUDQVPLVVLRQSRVLƃWLRQ[RU^WKHYHKLFOHPD\DFFHOHUDWHVKDUSO\#,I\RXHQJDJHWKHWUDQVPLVVLRQSRVLWLRQ[RU^DOZD\VGHSUHVVWKHEUDNHSHGDOILUPO\DQGGRQRWDFFHOHUDWHDWWKHVDPHWLPH8VHWKH',5(&76(/(&7OHYHUWRVKLIWWKHWUDQVƃPLVVLRQSRVLWLRQ7KHFXUUHQWWUDQVPLVVLRQSRVLƃWLRQLVGLVSOD\HGLQWKHPXOWLIXQFWLRQGLVSOD\]3DUNSRVLWLRQ^5HYHUVHJHDU\1HXWUDO['ULYHSRVLWLRQ'ULYLQJDQGSDUNLQJ $

$(QJDJLQJUHYHUVHJHDU5#'HSUHVVWKHEUDNHSHGDODQGSXVKWKH',5(&76(/(&7OHYHUXSSDVWWKHILUVWSRLQWRIUHVLVWDQFH7KHWUDQVPLVVLRQSRVLWLRQGLVSOD\VKRZV^LQWKHPXOWLIXQFWLRQGLVSOD\(QJDJLQJLGOH1#'HSUHVVWKHEUDNHSHGDODQGSXVKWKH',5(&76(/(&7OHYHUXSRUGRZQWRWKHILUVWSRLQWRIUHVLVWDQFH7KHWUDQVPLVVLRQSRVLWLRQGLVSOD\VKRZV\LQWKHPXOWLIXQFWLRQGLVSOD\6XEVHTXHQWO\UHOHDVLQJWKHEUDNHSHGDOZLOODOORZ\RXWRPRYHWKHYHKLFOHIUHHO\HJWRSXVKLWRUWRZLWDZD\,I\RXZDQWWKHDXWRPDWLFWUDQVPLVVLRQWRUHPDLQLQLGOH1HYHQLIWKHLJQLWLRQLVVZLWFKHGRII#6WDUWWKHYHKLFOH#GHSUHVVWKHEUDNHSHGDODQGVKLIWWRLGOH\#UHOHDVHWKHEUDNHSHGDO#VZLWFKRIIWKHLJQLWLRQ%LI\RXWKHQH[LWWKHYHKLFOHOHDYLQJWKHNH\LQWKHYHKLFOHWKHDXWRPDWLFWUDQVPLVVLRQUHPDLQVLQLGOH\(QJDJLQJSDUNSRVLWLRQ3#3UHVVEXWWRQ]7KHWUDQVPLVVLRQSRVLWLRQGLVSOD\VKRZV]LQWKHPXOWLIXQFWLRQGLVSOD\3DUNSRVLWLRQ]LVHQJDJHGDXWRPDWLFDOO\LIRQHRIWKHIROORZLQJFRQGLWLRQVLVPHW=\RXVZLWFKWKHHQJLQHRIIZLWKWKHWUDQVPLVƃVLRQLQSRVLWLRQ[RU^=\RXRSHQWKHGULYHUVGRRUZKHQWKHYHKLFOHLVDWDVWDQGVWLOORUZKHQGULYLQJDWDYHU\ORZVSHHGDQGWKHWUDQVPLVVLRQLVLQSRVLWLRQ[RU^%$WYHU\ORZRXWVLGHWHPSHUDWXUHVIURPDSSUR[&\RXPD\QRWEHDEOHWRVKLIWWKHWUDQVPLVVLRQIURP]WRDQRWKHUWUDQVƃPLVVLRQSRVLWLRQZKHQWKHHQJLQHLVVZLWFKHGRII,IWKLVLVWKHFDVHRQO\FKDQJHWKHWUDQVPLVVLRQSRVLWLRQZKLOHWKHHQJLQHLVUXQQLQJ(QJDJLQJGULYHSRVLWLRQ'#'HSUHVVWKHEUDNHSHGDODQGSXVKWKH',5(&76(/(&7OHYHUGRZQSDVWWKHILUVWSRLQWRIUHVLVWDQFH7KHWUDQVPLVVLRQSRVLWLRQGLVSOD\VKRZV[LQWKHPXOWLIXQFWLRQGLVSOD\:KHQWKHDXWRPDWLFWUDQVPLVVLRQLVLQWUDQVPLVƃVLRQSRVLWLRQ[LWVKLIWVWKHJHDUVDXWRPDWLƃFDOO\7KLVGHSHQGVRQWKHIROORZLQJIDFWRUV=WKHVHOHFWHGGULYHSURJUDP=WKHSRVLWLRQRIWKHDFFHOHUDWRUSHGDO=WKHGULYLQJVSHHG0DQXDOJHDUVKLIWLQJ&:$51,1*5LVNRIVNLGGLQJDQGRIDQDFFLGHQWGXHWRVKLIWLQJGRZQRQVOLSSHU\URDGVXUIDFHV,I\RXVKLIWGRZQRQVOLSSHU\URDGVXUIDFHVWRLQFUHDVHWKHHQJLQHEUDNLQJHIIHFWWKHGULYHZKHHOVPD\ORVHWUDFWLRQ 'ULYLQJDQGSDUNLQJ$

$#'RQRWVKLIWGRZQRQVOLSSHU\URDGVXUƃIDFHVWRLQFUHDVHWKHHQJLQHEUDNLQJHIIHFW#7RDFWLYDWHSXOOVWHHULQJZKHHOJHDUVKLIWSDGGOHRU0DQXDOJHDUVKLIWLQJLVDFWLYDWHGIRUDVKRUWWLPH7KHFXUUHQWJHDULVGLVSOD\HGLQWKHPXOWLIXQFWLRQGLVSOD\%+RZORQJPDQXDOJHDUVKLIWLQJLVDFWLYDWHGIRUGHSHQGVRQ\RXUGULYLQJVW\OH#7RVKLIWXSSXOOVWHHULQJZKHHOJHDUVKLIWSDGGOH#7RVKLIWGRZQSXOOVWHHULQJZKHHOJHDUVKLIWSDGGOH,I\RXSXOODQGKROGWKHVWHHULQJZKHHOJHDUƃVKLIWSDGGOHWKHWUDQVPLVVLRQVKLIWVWRWKHORZHVWSRVVLEOHJHDU#7RGHDFWLYDWHSXOOVWHHULQJZKHHOJHDUVKLIWSDGGOHDQGKROGLWLQSODFH7KHWUDQVPLVVLRQSRVLWLRQ[DSSHDUVLQWKHPXOWLIXQFWLRQGLVSOD\%,I\RXVHOHFWWKH0DQXDOGULYHVHWWLQJLQGULYHSURJUDP,PDQXDOJHDUVKLIWLQJLVSHUƃPDQHQWO\DFWLYDWHG*HDUVKLIWUHFRPPHQGDWLRQ7KHJHDUVKLIWUHFRPPHQGDWLRQDVVLVWV\RXLQDGRSWLQJDQHFRQRPLFDOGULYLQJVW\OH#,IJHDUVKLIWUHFRPPHQGDWLRQPHVVDJHLVVKRZQRQWKHPXOWLIXQFWLRQGLVSOD\VKLIWWRWKHUHFRPPHQGHGJHDU8VLQJNLFNGRZQ#0D[LPXPDFFHOHUDWLRQGHSUHVVWKHDFFHOƃHUDWRUSHGDOEH\RQGWKHSUHVVXUHSRLQW'XULQJNLFNGRZQ\RXFDQQRWVKLIWJHDUVXVLQJWKHVWHHULQJZKHHOJHDUVKLIWSDGGOHV7KHDXWRƃPDWLFWUDQVPLVVLRQVKLIWVXSWRWKHQH[WJHDUZKHQWKHPD[LPXPHQJLQHVSHHGLVUHDFKHGWRSURWHFWWKHHQJLQHIURPRYHUUHYYLQJ'ULYLQJDQGSDUNLQJ $

$*OLGHPRGHIXQFWLRQ:LWKDQDQWLFLSDWRU\GULYLQJVW\OHJOLGHPRGHKHOSV\RXWRUHGXFHIXHOFRQVXPSWLRQ*OLGHPRGHLVFKDUDFWHULVHGE\WKHIROORZLQJ=WKHFRPEXVWLRQHQJLQHLVGLVFRQQHFWHGIURPWKHGULYHWUDLQDQGWKHYHKLFOHFRQWLQXHVWRUROOLQQHXWUDO=WKHWUDQVPLVVLRQSRVLWLRQ[LVGLVSOD\HGLQJUHHQLQWKHPXOWLIXQFWLRQGLVSOD\*OLGHPRGHLVDFWLYDWHGLIWKHIROORZLQJFRQGLƃWLRQVDUHPHW=GULYHSURJUDP(LVVHOHFWHG=WKHVSHHGLVZLWKLQDVXLWDEOHUDQJH=WKHURDGVFRXUVHLVVXLWDEOHHJQRVWHHSXSKLOORUGRZQKLOOLQFOLQHVRUWLJKWEHQGV=WKHUHLVQRWUDLOHUFRXSOHGWRWKHWUDLOHUKLWFKDQGQRELF\FOHUDFNILWWHG=\RXDUHQRORQJHUGHSUHVVLQJWKHDFFHOHUDWRURUEUDNHSHGDO%*OLGHPRGHFDQDOVREHDFWLYDWHGLI\RXKDYHVHOHFWHGWKH(FRVHWWLQJIRUWKHGULYHZKHQLQGULYHSURJUDP,*OLGHPRGHLVGHDFWLYDWHGDJDLQLIRQHRIWKHFRQGLWLRQVLVQRORQJHUPHW9HKLFOHVZLWK'ULYLQJ$VVLVWDQFH3DFNDJH$FWLYH'LVWDQFH$VVLVW',67521,&RU$FWLYH%UDNH$VVLVWJOLGHPRGHLVDOVRGHDFWLYDWHGGHSHQGLQJRQWKHWUDIILFVLWXDWLRQDQGWKHYHKLƃFOHWKHQVZLWFKHVWRRYHUUXQPRGH*OLGHPRGHFDQDOVREHSUHYHQWHGE\WKHIROORZƃLQJSDUDPHWHUV=LQFOLQH=GRZQKLOOJUDGLHQW=WHPSHUDWXUH=KHLJKW=VSHHG=RSHUDWLQJVWDWXVRIWKHHQJLQH%*OLGHPRGHFDQEHGHDFWLYDWHGE\DFWXDWLQJWKHULJKWKDQGVWHHULQJZKHHOJHDUVKLIWSDGƃGOHĺSDJH5HIXHOOLQJ5HIXHOOLQJWKHYHKLFOH&:$51,1*5LVNRIILUHRUH[SORVLRQIURPIXHO)XHOVDUHKLJKO\IODPPDEOH#)LUHQDNHGIODPHVVPRNLQJDQGFUHDWƃLQJVSDUNVPXVWEHDYRLGHG#6ZLWFKRIIWKHLJQLWLRQDQGLILWKDVEHHQLQXVHVZLWFKRIIWKHVWDWLRQDU\KHDWHUEHIRUH\RXUHIXHO\RXUYHKLFOH&:$51,1*5LVNRILQMXU\IURPIXHO)XHOVDUHSRLVRQRXVDQGKDUPIXOWR\RXUKHDOWK#'RQRWVZDOORZIXHORUOHWLWFRPHLQWRFRQWDFWZLWKVNLQH\HVRUFORWKLQJ#'RQRWLQKDOHIXHOYDSRXU#.HHSFKLOGUHQDZD\IURPIXHO,I\RXRURWKHUSHRSOHFRPHLQWRFRQWDFWZLWKIXHOREVHUYHWKHIROORZLQJ 'ULYLQJDQGSDUNLQJ$

$#,PPHGLDWHO\ULQVHIXHORII\RXUVNLQZLWKVRDSDQGZDWHU#,IIXHOFRPHVLQWRFRQWDFWZLWK\RXUH\HVLPPHGLDWHO\ULQVHWKHPWKRUƃRXJKO\ZLWKFOHDQZDWHU6HHNPHGLFDODWWHQWLRQLPPHGLDWHO\#,I\RXVZDOORZIXHOVHHNPHGLFDODWWHQƃWLRQLPPHGLDWHO\'RQRWLQGXFHYRPLWƃLQJ#&KDQJHLPPHGLDWHO\RXWRIFORWKLQJWKDWKDVFRPHLQWRFRQWDFWZLWKIXHO&:$51,1*5LVNRIILUHDQGH[SORVLRQGXHWRHOHFWURVWDWLFFKDUJH(OHFWURVWDWLFFKDUJHFDQFDXVHVSDUNVDQGWKHUHE\LJQLWHIXHOYDSRXUV#7RXFKWKHPHWDOYHKLFOHERG\EHIRUHRSHQLQJWKHIXHOILOOHUFDSRUWRXFKLQJWKHSXPSQR]]OH7KLVGLVFKDUJHVDQ\HOHFWURVWDWLFFKDUJHWKDWPD\KDYHEXLOWXS&:$51,1*5LVNRIILUHIURPIXHOPL[WXUH9HKLFOHVZLWKDGLHVHOHQJLQH,I\RXPL[GLHVHOIXHOZLWKSHWUROWKHIODVKSRLQWRIWKHIXHOPL[WXUHLVORZHUWKDQWKDWRISXUHGLHVHOIXHO:KLOHWKHHQJLQHLVUXQQLQJFRPSRQHQWSDUWVLQWKHH[KDXVWV\VWHPPD\RYHUKHDWZLWKRXWZDUQLQJ#1HYHUUHIXHOXVLQJSHWURO#1HYHUPL[SHWUROZLWKGLHVHOIXHO*127('DPDJHFDXVHGE\WKHZURQJIXHO9HKLFOHVZLWKDSHWUROHQJLQHHYHQVPDOODPRXQWVRIWKHZURQJIXHOFRXOGUHVXOWLQGDPDJHWRWKHIXHOV\VWHPWKHHQJLQHDQGWKHHPLVVLRQFRQWUROV\VWHP#2QO\UHIXHOXVLQJXQOHDGHGIXHOWKDWFRQIRUPVWR(1RUDQHTXLYDOHQWVSHFLILFDWLRQ#7KH521UHTXLUHPHQWLVORFDWHGLQWKHIXHOILOOHUIODS)XHORIWKLVVSHFLILFDWLRQPD\FRQWDLQXSWRHWKDQRO<RXUYHKLFOHLVVXLWDEOHIRUXVHZLWK(IXHO'RQRWUHIXHOXVLQJWKHIROORZLQJIXHOV=GLHVHO=((=SHWUROFRQWDLQLQJPHWKDQRO0000=SHWUROZLWKDGGLWLYHVFRQWDLQLQJPHWDO,I\RXDFFLGHQWDOO\UHIXHOZLWKWKHZURQJIXHO#GRQRWVZLWFKWKHLJQLWLRQRQ#FRQVXOWDTXDOLILHGVSHFLDOLVWZRUNVKRS*127('DPDJHFDXVHGE\WKHZURQJIXHO9HKLFOHVZLWKDGLHVHOHQJLQHHYHQVPDOODPRXQWVRIWKHZURQJIXHOFRXOGUHVXOWLQGDPDJHWRWKHIXHOV\VWHPWKHHQJLQHDQGWKHHPLVVLRQFRQWUROV\VWHP'ULYLQJDQGSDUNLQJ $

$#2QO\UHIXHOXVLQJGLHVHOIXHOWKDWFRQƃIRUPVWR(1RUDQHTXLYDOHQWVSHFƃLILFDWLRQ#9HKLFOHVZLWKGLHVHOSDUWLFXODWHILOƃWHUVLQFRXQWULHVRXWVLGHWKH(8RQO\XVHORZVXOSKXU(XURGLHVHOZLWKDVXOƃSKXUFRQWHQWRIXQGHUSSP'RQRWUHIXHOXVLQJWKHIROORZLQJIXHOV=SHWURO=PDULQHGLHVHO=KHDWLQJRLO=ELRGLHVHO=YHJHWDEOHRLO=SDUDIILQ=NHURVHQH,I\RXDFFLGHQWDOO\UHIXHOZLWKWKHZURQJIXHO#GRQRWVZLWFKWKHLJQLWLRQRQ#FRQVXOWDTXDOLILHGVSHFLDOLVWZRUNVKRS*127('RQRWXVHGLHVHOWRUHIXHOYHKLƃFOHVZLWKDSHWUROHQJLQH,I\RXDFFLGHQWDOO\UHIXHOZLWKWKHZURQJIXHO='RQRWVZLWFKRQWKHLJQLWLRQ2WKHUZLVHIXHOFDQHQWHUWKHHQJLQH(YHQVPDOODPRXQWVRIWKHZURQJIXHOFRXOGUHVXOWLQGDPDJHWRWKHIXHOV\VWHPDQGWKHHQJLQH7KHUHSDLUFRVWVDUHKLJK#&RQWDFWDTXDOLILHGVSHFLDOLVWZRUNVKRS#+DYHWKHIXHOWDQNDQGIXHOOLQHVGUDLQHGFRPSOHWHO\*127('RQRWXVHSHWUROWRUHIXHOYHKLƃFOHVZLWKDGLHVHOHQJLQH,I\RXDFFLGHQWDOO\UHIXHOZLWKWKHZURQJIXHO='RQRWVZLWFKRQWKHLJQLWLRQ2WKHUZLVHIXHOFDQHQWHUWKHIXHOV\VWHP(YHQVPDOODPRXQWVRIWKHZURQJIXHOFRXOGUHVXOWLQGDPDJHWRWKHIXHOV\VWHPDQGWKHHQJLQH7KHUHSDLUFRVWVDUHKLJK#&RQWDFWDTXDOLILHGVSHFLDOLVWZRUNVKRS#+DYHWKHIXHOWDQNDQGIXHOOLQHVGUDLQHGFRPSOHWHO\*127('DPDJHWRWKHIXHOV\VWHPFDXVHGE\RYHUILOOHGIXHOWDQNV#2QO\ILOOWKHIXHOWDQNXQWLOWKHIXHOSXPSQR]]OHVZLWFKHVRII,I\RXKDYHDGGHGWRRPXFKIXHOEHFDXVHRIDGHIHFWLYHILOOLQJSXPS#GRQRWVZLWFKWKHLJQLWLRQRQ#FRQVXOWDTXDOLILHGVSHFLDOLVWZRUNVKRS*127()XHOPD\VSUD\RXWZKHQ\RXUHPRYHWKHIXHOSXPSQR]]OH#2QO\ILOOWKHIXHOWDQNXQWLOWKHSXPSQR]]OHVZLWFKHVRII5HTXLUHPHQWV=XQORFNWKHYHKLFOH 'ULYLQJDQGSDUNLQJ$

$%'RQRWJHWLQWRWKHYHKLFOHDJDLQGXULQJWKHUHIXHOOLQJSURFHVV2WKHUZLVHHOHFWURVWDWLFFKDUJHFRXOGEXLOGXSDJDLQ2EVHUYHWKHQRWHVRQRSHUDWLQJIOXLGVĺSDJH5HIXHOOLQJ)XHOILOOHUIODS%UDFNHWIRUWKHIXHOILOOHUFDS)XHOW\SH7\UHSUHVVXUHWDEOH45FRGHIRUUHVFXHFDUG#3UHVVRQWKHEDFNDUHDRIWKHIXHOILOOHUIODS#7XUQWKHIXHOILOOHUFDSDQWLFORFNZLVHDQGUHPRYHLW#,QVHUWWKHIXHOILOOHUFDSLQWREUDFNHW#&RPSOHWHO\LQVHUWWKHSXPSQR]]OHLQWRWKHWDQNILOOHUQHFNKRRNLQSODFHDQGUHIXHO#2QO\ILOOWKHIXHOWDQNXQWLOWKHSXPSQR]]OHVZLWFKHVRII%9HKLFOHVZLWKDGLHVHOHQJLQHWKHILOOHUQHFNLVGHVLJQHGIRUUHIXHOOLQJDWGLHVHOILOOƃLQJSXPSV%9HKLFOHVZLWKDGLHVHOHQJLQHZKHQWKHIXHOWDQNLVFRPSOHWHO\HPSW\WRSXSZLWKDWOHDVWORIGLHVHO%9HKLFOHVZLWKDGLHVHOHQJLQHXVHDILOOHUQHFNZLWKDODUJHGLDPHWHUIRUYHKLFOHVZLWKDGLHVHOHQJLQHZKHQWRSSLQJXSIXHOIURPDIXHOFDQ2WKHUZLVHWKHILOOHUQHFNFDQQRWVOLGHLQWRWKHWDQN$G%OXHGLHVHOHQJLQHYHKLFOHVRQO\1RWHVRQ$G%OXH*127(:KHQ\RXRSHQWKH$G%OXHWDQNVPDOODPRXQWVRIDPPRQLDYDSRXUPD\HVFDSH#2QO\ILOOWKH$G%OXHWDQNLQZHOOYHQWLƃODWHGDUHDV#'RQRWOHW$G%OXHFRPHLQWRFRQWDFWZLWKVNLQH\HVRUFORWKHV#.HHS$G%OXHDZD\IURPFKLOGUHQ*127('RQRWLQJHVW$G%OXH,I$G%OXHLVVZDOORZHG#,PPHGLDWHO\ULQVHRXW\RXUPRXWKWKRUƃRXJKO\#'ULQNSOHQW\RIZDWHU'ULYLQJDQGSDUNLQJ $

$#6HHNPHGLFDODWWHQWLRQLPPHGLDWHO\3OHDVHDOVRREVHUYHWKHQRWHVRQVHUYLFHSURGƃXFWVDQGIXHOVĺSDJH$G%OXHLVDIOXLGXUHDVROXWLRQIRUH[KDXVWJDVDIWHUWUHDWPHQWRIGLHVHOHQJLQHV,QRUGHUIRUWKHH[KDXVWJDVDIWHUWUHDWPHQWWRIXQFWLRQSURSHUO\RQO\XVH$G%OXHLQDFFRUGDQFHZLWK,62$G%OXHLVFKDUDFWHULVHGE\WKHIROORZLQJ=QRQWR[LF=FRORXUOHVVDQGRGRXUOHVV=QRQIODPPDEOH$G%OXHDYDLODELOLW\=$G%OXHPD\EHWRSSHGXSE\IDVWVHUYLFHDWDTXDOLILHGVSHFLDOLVWZRUNVKRSHJD0HUFHGHV%HQ]6HUYLFH&HQWUH=$G%OXHLVDYDLODEOHDWPDQ\ILOOLQJVWDWLRQVIURP$G%OXHILOOLQJSXPSV=$OWHUQDWLYHO\$G%OXHLVDYDLODEOHDWTXDOLILHGVSHFLDOLVWZRUNVKRSVHJ0HUFHGHV%HQ]6HUYLFH&HQWUHVDQGDWPDQ\ILOOLQJVWDWLRQVLQ$G%OXHUHILOOFDQLVWHUVRU$G%OXHUHILOOERWWOHV%(QVXUHWKHFRQQHFWLRQEHWZHHQWKHUHILOOFRQWDLQHUDQGYHKLFOHILOOHUQHFNGRHVQRWGULS7RSSLQJXS$G%OXH*127((QJLQHGDPDJHGXHWR$G%OXHLQWKHIXHO#$G%OXHPXVWQRWEHXVHGWRILOOWKHIXHOWDQN#2QO\XVH$G%OXHWRILOOWKH$G%OXHWDQN#'RQRWRYHUILOOWKH$G%OXHWDQN*127(&RQWDPLQDWLRQRIWKHYHKLFOHLQWHƃULRUGXHWR$G%OXHOHDNDJH#$IWHUWRSSLQJXSFDUHIXOO\FORVHWKH$G%OXHUHILOOFRQWDLQHU#$YRLGFDUU\LQJ$G%OXHUHILOOFRQWDLQHUVSHUPDQHQWO\LQWKHYHKLFOH5HTXLUHPHQWV=8QORFNWKHYHKLFOH7KHIROORZLQJPHVVDJHVDSSHDULQRUGHULQWKHPXOWLIXQFWLRQGLVSOD\ZKHQWKH$G%OXHWDQNUHTXLUHVUHILOOLQJ=5HILOO$G%OXH6HH2ZQHU¶V0DQXDO7KH$G%OXHWDQNLVGRZQWRWKHUHVHUYHOHYHO=5HILOO$G%OXH1RVWDUWLQ;;;PLOHV<RXFDQRQO\GULYHWKHYHKLFOHRYHUWKHGLVWDQFHVKRZQ5HILOO$G%OXHDVVRRQDVSRVVLEOH=5HILOO$G%OXH(QJVWDUWQRWSRVVLEOH7KHYHKLFOHFDQQRORQJHUEHVWDUWHG 'ULYLQJDQGSDUNLQJ$

$2SHQLQJWKH$G%OXHIXHOILOOHUFDS#3UHVVRQWKHEDFNDUHDRIWKHIXHOILOOHUIODS#7XUQ$G%OXHIXHOILOOHUFDSDQWLFORFNZLVHDQGUHPRYHLW%<RXFDQDOVRVWRUHWKH$G%OXHIXHOILOOHUFDSLQWKHIXHOILOOHUFDSKROGHULQWKHLQWKHIXHOILOOHUIODSKLQJHDUP3UHSDULQJWKH$G%OXHUHILOOFDQLVWHU#6FUHZRQWKHIDVWHQHURI$G%OXHUHILOOFDQLVƃWHU#6FUHZGLVSRVDEOHKRVHRQWRWKHRSHQLQJRI$G%OXHUHILOOFDQLVWHUXQWLOKDQGWLJKW7RSSLQJXS$G%OXH#6FUHZGLVSRVDEOHKRVHRQWRWKHILOOHUQHFNRIWKHYHKLFOHXQWLOKDQGWLJKW#/LIWXSDQGWLS$G%OXHUHILOOFDQLVWHU7KHILOOLQJSURFHVVVWRSVZKHQWKH$G%OXHWDQNLVFRPSOHWHO\IXOO$G%OXHUHILOOFDQLVWHUFDQEHUHPRYHGZKHQLWKDVEHHQRQO\SDUWLDOO\HPSWLHG'ULYLQJDQGSDUNLQJ $

$#8QVFUHZDQGFORVHGLVSRVDEOHKRVHDQG$G%OXHUHILOOFDQLVWHULQUHYHUVHRUGHU#6ZLWFKRQWKHLJQLWLRQIRUDWOHDVWVHFƃRQGV%,IWKHYHKLFOHFRXOGQRWEHVWDUWHGDVWKH$G%OXHFRQWDLQHUZDVHPSW\LWFDQWDNHXSWRVHFRQGVIRUWKHUHILOOWREHGHWHFWHG#6WDUWWKHYHKLFOH%$YRLGVWRULQJ$G%OXHUHILOOFRQWDLQHUVSHUƃPDQHQWO\LQWKHYHKLFOH3DUNLQJ3DUNLQJWKHYHKLFOH&:$51,1*5LVNRIILUHFDXVHGE\KRWH[KDXVWV\VWHPSDUWV)ODPPDEOHPDWHULDOVXFKDVOHDYHVJUDVVRUWZLJVPD\LJQLWHLIWKH\FRPHLQWRFRQWDFWZLWKKRWSDUWVRIWKHH[KDXVWV\VWHPRUH[KDXVWJDVIORZ#3DUNWKHYHKLFOHVRWKDWQRIODPPDEOHPDWHULDOFDQFRPHLQWRFRQWDFWZLWKKRWYHKLFOHFRPSRQHQWV#,QSDUWLFXODUGRQRWSDUNRQGU\JUDVVƃODQGRUKDUYHVWHGJUDLQILHOGV&:$51,1*5LVNRIDFFLGHQWDQGLQMXU\GXHWRFKLOGUHQOHIWXQDWWHQGHGLQWKHYHKLFOH,I\RXOHDYHFKLOGUHQXQDWWHQGHGLQWKHYHKLƃFOHWKH\PD\EHDEOHWRVHWWKHYHKLFOHLQPRWLRQIRUH[DPSOHE\=5HOHDVLQJWKHSDUNLQJEUDNH=6KLIWLQJWKHDXWRPDWLFWUDQVPLVVLRQRXWRISDUNSRVLWLRQ]=6WDUWLQJWKHHQJLQH,QDGGLWLRQWKH\PD\RSHUDWHYHKLFOHHTXLSƃPHQWDQGEHFRPHWUDSSHG#1HYHUOHDYHFKLOGUHQXQDWWHQGHGLQWKHYHKLFOH#:KHQOHDYLQJWKHYHKLFOHDOZD\VWDNHWKHNH\ZLWK\RXDQGORFNWKHYHKLFOH*127('DPDJHWRWKHYHKLFOHGXHWRLWUROOLQJDZD\#$OZD\VVHFXUHWKHYHKLFOHDJDLQVWUROOƃLQJDZD\6WDUWVWRSEXWWRQ#2QXSKLOORUGRZQKLOOJUDGLHQWVWXUQWKHIURQWZKHHOVWRZDUGVWKHNHUE 'ULYLQJDQGSDUNLQJ$

$#DSSO\WKHHOHFWULFSDUNLQJEUDNH#VHOHFWWUDQVPLVVLRQSRVLWLRQ]#VZLWFKRIIWKHLJQLWLRQ#ORFNWKHYHKLFOH%:KHQ\RXSDUNWKHYHKLFOH\RXFDQVWLOORSHUDWHWKHVLGHZLQGRZVDQGWKHSDQRUDPLFVOLGLQJVXQURRIIRUDSSUR[LPDWHO\ILYHPLQXWHVZKHQWKHGULYHUVGRRULVFORVHG*DUDJHGRRURSHQHU3URJUDPPLQJEXWWRQVIRUWKHJDUDJHGRRURSHQHU&:$51,1*5LVNRIH[KDXVWJDVSRLVRQLQJ&RPEXVWLRQHQJLQHVHPLWSRLVRQRXVH[KDXVWJDVHVVXFKDVFDUERQPRQR[LGH,QKDOLQJWKHVHH[KDXVWJDVHVFDXVHVSRLVRQLQJ#1HYHUOHDYHWKHHQJLQHUXQQLQJLQDQHQFORVHGVSDFHZLWKRXWVXIILFLHQWYHQWLƃODWLRQ&:$51,1*5LVNRILQMXU\DQGHQWUDSPHQWZKHQRSHQLQJWKHJDUDJHGRRUXVLQJWKHJDUDJHGRRURSHQHU:KHQ\RXRSHUDWHRUSURJUDPWKHJDUDJHGRRUZLWKWKHLQWHJUDWHGJDUDJHGRRURSHQHUSHUVRQVLQWKHUDQJHRIPRYHPHQWRIWKHJDUDJHGRRUFDQEHFRPHWUDSSHGRUVWUXFNE\WKHJDUDJHGRRU#:KHQXVLQJWKHLQWHJUDWHGJDUDJHGRRURSHQHUDOZD\VPDNHVXUHWKDWQRERG\LVZLWKLQWKHVZHHSRIWKHJDUDJHGRRU5HTXLUHPHQWV=7KHYHKLFOHLVSDUNHGRXWVLGHRIWKHJDUDJH=7KHHQJLQHLVVZLWFKHGRII #3UHVVDQGKROGEXWWRQRUWKDW\RXZLVKWRSURJUDP,QGLFDWRUODPSIODVKHV\HOORZ%,WFDQWDNHXSWRVHFRQGVEHIRUHWKHLQGLƃFDWRUODPSIODVKHV\HOORZ#5HOHDVHWKHSUHYLRXVO\SUHVVHGEXWWRQ,QGLFDWRUODPSFRQWLQXHVWRIODVK\HOORZ'ULYLQJDQGSDUNLQJ $

$#3RLQWUHPRWHFRQWURODWDGLVWDQFHRIFPWRFPWRZDUGVEXWWRQVRU#3UHVVDQGKROGEXWWRQRIUHPRWHFRQWUROXQWLO=,QGLFDWRUODPSOLJKWVXSJUHHQFRQWLQƃXRXVO\3URJUDPPLQJLVFRPSOHWH=,QGLFDWRUODPSIODVKHVJUHHQ3URƃJUDPPLQJZDVVXFFHVVIXO$GGLWLRQDOO\V\QFKURQLVDWLRQRIWKHUROOLQJFRGHZLWKWKHJDUDJHGRRUV\VWHPPXVWDOVREHFDUƃULHGRXW#,ILQGLFDWRUODPSGRHVQRWOLJKWXSRUIODVKJUHHQUHSHDWWKHSURFHGXUH#5HOHDVHDOORIWKHEXWWRQV%7KHUHPRWHFRQWUROIRUWKHJDUDJHGRRUGULYHLVQRWLQFOXGHGLQWKHVFRSHRIGHOLYHU\RIWKHJDUDJHGRRURSHQHU6\QFKURQLVLQJWKHUROOLQJFRGH5HTXLUHPHQWV=7KHJDUDJHGRRUV\VWHPXVHVDUROOLQJFRGH=7KHYHKLFOHPXVWEHZLWKLQUDQJHRIWKHJDUDJHGRRURUH[WHULRUJDWHGULYH=7KHYHKLFOHDVZHOODVSHUVRQVDQGREMHFWVDUHORFDWHGRXWVLGHWKHVZHHSRIWKHJDUDJHGRRU#3UHVVWKHSURJUDPPLQJEXWWRQRQWKHGRRUGULYHXQLW,QLWLDWHWKHQH[WVWHSZLWKLQDSSUR[LPDWHO\VHFRQGV#3UHVVSUHYLRXVO\SURJUDPPHGEXWWRQRUUHSHDWHGO\XQWLOWKHGRRUFORVHV:KHQWKHGRRUFORVHVSURJUDPPLQJLVFRPƃSOHWHG%3OHDVHDOVRUHDGWKHRSHUDWLQJLQVWUXFWLRQVIRUWKHJDUDJHGRRUGULYH7URXEOHVKRRWLQJZKHQSURJUDPPLQJWKHUHPRWHFRQWURO#&KHFNLIWKHWUDQVPLWWHUIUHTXHQF\RIUHPRWHFRQWUROLVVXSSRUWHG#5HSODFHWKHEDWWHULHVLQUHPRWHFRQWURO#+ROGUHPRWHFRQWURODWYDULRXVDQJOHVDWDGLVWDQFHEHWZHHQFPWRFPLQIURQWRI 'ULYLQJDQGSDUNLQJ$

$WKHLQVLGHUHDUYLHZPLUURU<RXVKRXOGWHVWHYHU\SRVLWLRQIRUDWOHDVWVHFRQGVEHIRUHWU\LQJDQRWKHUSRVLWLRQ#+ROGUHPRWHFRQWURODWWKHVDPHDQJOHVDWYDULRXVGLVWDQFHVLQIURQWRIWKHLQVLGHUHDUYLHZPLUURU<RXVKRXOGWHVWHYHU\SRVLWLRQIRUDWOHDVWVHFRQGVEHIRUHWU\LQJDQRWKHUSRVLWLRQ#1RWHWKDWVRPHUHPRWHFRQWUROVWUDQVPLWRQO\IRUDOLPLWHGSHULRGSUHVVEXWWRQRQUHPRWHFRQWURODJDLQEHIRUHWUDQVPLVVLRQHQGV#$OLJQWKHDHULDOOLQHRIWKHJDUDJHGRRURSHQHUXQLWZLWKWKHUHPRWHFRQWURO%6XSSRUWDQGDGGLWLRQDOLQIRUPDWLRQRQSURƃJUDPPLQJ=2QWKH+RPH/LQN+RWOLQHRQRU=2QWKH,QWHUQHWDWKWWSZZZKRPHOLQNFRP2SHQLQJFORVLQJWKHJDUDJHGRRU5HTXLUHPHQWV=7KHFRUUHVSRQGLQJEXWWRQLVSURJUDPPHGWRRSHUDWHWKHJDUDJHGRRU#3UHVVDQGKROGEXWWRQVRUXQWLOWKHJDUDJHGRRURSHQVRUFORVHV#,ILQGLFDWRUODPSIODVKHV\HOORZDIWHUDSSUR[LPDWHO\VHFRQGVSUHVVDQGKROGWKHSUHYLRXVO\SUHVVHGEXWWRQDJDLQXQWLOWKHJDUDJHGRRURSHQVRUFORVHV&OHDULQJWKHJDUDJHGRRURSHQHUPHPRU\#3UHVVDQGKROGEXWWRQVDQG,QGLFDWRUODPSOLJKWVXS\HOORZ#,ILQGLFDWRUODPSIODVKHVJUHHQUHOHDVHEXWWRQVDQG'ULYLQJDQGSDUNLQJ $

$5DGLRHTXLSPHQWDSSURYDOQXPEHUVIRUWKHJDUDJHGRRURSHQHU5DGLRHTXLSPHQWDSSURYDOQXPEHUV&RXQWU\ 5DGLRHTXLSPHQWDSSURYDOQXPEHU(J\SW 7$&:,5$QGRUUD &($XVWUDOLD 51=%DUEDGRV 0('&KLOH ')56)(XURSHDQ8QLRQ&(*LEUDOWDU &(,FHODQG &(-RUGDQ 75&/3'&DQDGD ,&$08$+/.XZDLW &(&RXQWU\ 5DGLRHTXLSPHQWDSSURYDOQXPEHU/LHFKWHQƃVWHLQ&(0H[LFR 5&3*(080RQDFR &(1HZ=HDƃODQG51=1RUZD\ &(5XVVLDQ)HGHUDƃWLRQQRWUHTXLUHG6DXGL$UDƃELD7$6ZLW]HUƃODQG&(&RXQWU\ 5DGLRHTXLSPHQWDSSURYDOQXPEHU6RXWK$IULFD7$7XUNH\ QRWUHTXLUHG8QLWHG$UDE(PLƃUDWHV(5'HDOHU1R'$8QLWHG6WDWHV)&&,'1=/08$+/ 'ULYLQJDQGSDUNLQJ$

$%UD]LO(VWHHTXLSDPHQWRRSHUDHPFDUiWHUVHFXQGiULRLVWRpQmRWHPGLUHLWRjSURWHomRFRQWUDLQWHUIHUƃrQFLDSUHMXGLFLDOPHVPRGHHVWDo}HVGRPHVPRWLSRHQmRSRGHFDXVDULQWHUIHUrQFLDDVLVWHPDVRSHUDQGRHPFDUiWHUSULPiULR3DUDPDLRUHVLQIRUPDo}HVDFHVVDUZZZDQDWHOJRYEU)XUWKHULQIRUPDWLRQRQWKHGHFODUDWLRQRIFRQƃIRUPLW\IRUZLUHOHVVYHKLFOHFRPSRQHQWVĺSDJH(OHFWULFSDUNLQJEUDNH(OHFWULFSDUNLQJEUDNHIXQFWLRQDSSO\LQJDXWRPDWLFDOO\&:$51,1*5LVNRIDFFLGHQWDQGLQMXU\GXHWRFKLOGUHQOHIWXQDWWHQGHGLQWKHYHKLFOH,I\RXOHDYHFKLOGUHQXQDWWHQGHGLQWKHYHKLƃFOHWKH\PD\EHDEOHWRVHWWKHYHKLFOHLQPRWLRQIRUH[DPSOHE\=5HOHDVLQJWKHSDUNLQJEUDNH=6KLIWLQJWKHDXWRPDWLFWUDQVPLVVLRQRXWRISDUNSRVLWLRQ]RUVKLIWLQJWKHPDQXDOWUDQVPLVVLRQLQWRQHXWUDO=6WDUWLQJWKHHQJLQH,QDGGLWLRQWKH\PD\RSHUDWHYHKLFOHHTXLSƃPHQW#1HYHUOHDYHFKLOGUHQDQGDQLPDOVXQDWƃWHQGHGLQWKHYHKLFOH#:KHQOHDYLQJWKHYHKLFOHDOZD\VWDNHWKHNH\ZLWK\RXDQGORFNWKHYHKLFOH7KLVDOVRDSSOLHVWRPRELOHSKRQHVLIWKH'LJLWDO&DU.H\LQWKHVPDUWSKRQHIXQFWLRQLVDFWLYDWHGYLDWKH0HUFHGHVFRQQHFWPHZHEDSS7KHHOHFWULFSDUNLQJEUDNHLVDSSOLHGLIWKHWUDQVƃPLVVLRQLVLQSRVLWLRQ]DQGRQHRIWKHIROORZƃLQJFRQGLWLRQVLVIXOILOOHG=7KHHQJLQHLVVZLWFKHGRII=7KHVHDWEHOWWRQJXHLVQRWLQVHUWHGLQWKHVHDWEHOWEXFNOHRIWKHGULYHUVVHDWDQGWKHGULYHUVGRRULVRSHQHG%7RSUHYHQWDSSOLFDWLRQSXOOWKHKDQGOHRIWKHHOHFWULFSDUNLQJEUDNH,QWKHIROORZLQJVLWXDWLRQVWKHHOHFWULFSDUNLQJEUDNHLVDOVRHQJDJHG=7KH$FWLYH'LVWDQFH$VVLVWDQW',67521,&LVEULQJLQJWKHYHKLFOHWRDVWDQGVWLOO=7KH+2/'IXQFWLRQLVNHHSLQJWKHYHKLFOHVWDƃWLRQDU\=$FWLYH3DUNLQJ$VVLVWLVNHHSLQJWKHYHKLFOHVWDWLRQDU\'ULYLQJDQGSDUNLQJ $

$7KLVLVRQO\WKHFDVHLIRQHRIWKHIROORZLQJFRQƃGLWLRQVLVDOVRIXOILOOHG=7KHHQJLQHLVVZLWFKHGRII=7KHVHDWEHOWWRQJXHLVQRWLQVHUWHGLQWKHVHDWEHOWEXFNOHRIWKHGULYHUVVHDWDQGWKHGULYHUVGRRULVRSHQHG=7KHUHLVDV\VWHPPDOIXQFWLRQ=7KHSRZHUVXSSO\LVLQVXIILFLHQW=7KHYHKLFOHLVVWDWLRQDU\IRUDOHQJWK\SHULRG:KHQWKHHOHFWULFSDUNLQJEUDNHLVDSSOLHGWKH$LQGLFDWRUODPSOLJKWVXSLQWKHLQVWUXƃPHQWFOXVWHU7KHHOHFWULFSDUNLQJEUDNHLVQRWDXWRPDWLFDOO\DSSOLHGLIWKHHQJLQHLVVZLWFKHGRIIE\WKH(&2VWDUWVWRSIXQFWLRQ(OHFWULFSDUNLQJEUDNHIXQFWLRQUHOHDVLQJDXWRPDWLFDOO\7KHHOHFWULFSDUNLQJEUDNHLVUHOHDVHGZKHQWKHIROORZLQJFRQGLWLRQVDUHIXOILOOHG=7KHHQJLQHLVUXQQLQJ=7KHVHDWEHOWWRQJXHLVLQVHUWHGLQWRWKHVHDWEHOWEXFNOHRIWKHGULYHUVVHDW=7KHWUDQVPLVVLRQLVLQSRVLWLRQ[RU^DQG\RXGHSUHVVWKHDFFHOHUDWRUSHGDORU\RXVKLIWIURPWUDQVPLVVLRQSRVLWLRQ]WR[RU^=,IWKHWUDQVPLVVLRQLVLQSRVLWLRQ^WKHERRWOLGPXVWEHFORVHG,IWKHVHDWEHOWWRQJXHLVQRWLQVHUWHGLQWRWKHVHDWEHOWEXFNOHRIWKHGULYHUVVHDWWKHIROORZƃLQJFRQGLWLRQVPXVWEHIXOILOOHG=7KHGULYHUVGRRULVFORVHG=<RXPRYHWKHWUDQVPLVVLRQRXWRIWUDQVPLVƃVLRQSRVLWLRQ]RU\RXKDYHSUHYLRXVO\GULYHQIDVWHUWKDQNPK=,IWKHWUDQVPLVVLRQLVLQSRVLWLRQ^WKHERRWOLGPXVWEHFORVHG,IWKHHOHFWULFSDUNLQJEUDNHLVUHOHDVHGWKH$LQGLFDWRUODPSLQWKHLQVWUXPHQWFOXVƃWHUJRHVRXW$SSO\LQJRUUHOHDVLQJWKHHOHFWULFSDUNLQJEUDNHPDQXDOO\$SSO\LQJ#3XVKKDQGOH7KHUHG$LQGLFDWRUODPSDSSHDUVLQWKHLQVWUXPHQWFOXVWHU 'ULYLQJDQGSDUNLQJ$

$%7KHHOHFWULFSDUNLQJEUDNHLVRQO\VHFXUHO\DSSOLHGLIWKHLQGLFDWRUODPSLVOLWFRQWLQXƃRXVO\5HOHDVLQJ#6ZLWFKWKHLJQLWLRQRQ#3XOOKDQGOH7KHUHG$LQGLFDWRUODPSLQWKHLQVWUXƃPHQWFOXVWHUJRHVRXW(PHUJHQF\EUDNLQJ#3UHVVDQGKROGKDQGOH:KHQWKHYHKLFOHKDVEHHQEUDNHGWRDVWDQGVWLOOWKHHOHFWULFSDUNLQJEUDNHLVDSSOLHG7KH$LQGLFDWRUODPSDSSHDUVLQWKHLQVWUXPHQWFOXVWHU,QIRUPDWLRQRQGHWHFWLQJGDPDJHRQDSDUNHGYHKLFOH,IDFROOLVLRQLVGHWHFWHGZKHQWKHWRZDZD\SURƃWHFWLRQLVDFWLYDWHGRQDORFNHGYHKLFOH\RXZLOOUHFHLYHQRWLILFDWLRQ=2Q\RXUVPDUWSKRQH=,QWKHPXOWLPHGLDV\VWHPZKHQ\RXVZLWFKRQWKHLJQLWLRQ<RXZLOOUHFHLYHLQIRUPDWLRQDERXWWKHIROORZLQJSRLQWV=7KHDUHDRIWKHYHKLFOHWKDWPD\KDYHEHHQGDPDJHG=7KHIRUFHRIWKHLPSDFW7KHIROORZLQJVLWXDWLRQVFDQOHDGWRLQDGYHUWHQWDFWLYDWLRQ=7KHSDUNHGYHKLFOHLVPRYHGHJLQDWZRVWRUH\JDUDJH%'HDFWLYDWHWRZDZD\SURWHFWLRQLQRUGHUWRSUHYHQWLQDGYHUWHQWDFWLYDWLRQ,I\RXGHDFWLƃYDWHWRZDZD\SURWHFWLRQGDPDJHGHWHFWLRQZLOODOVREHGHDFWLYDWHG6\VWHPOLPLWDWLRQV'HWHFWLRQPD\EHUHVWULFWHGLQWKHIROORZLQJVLWƃXDWLRQV=WKHYHKLFOHLVGDPDJHGZLWKRXWLPSDFWHJLIDQRXWVLGHPLUURULVWRUQRIIRUWKHSDLQWLVGDPDJHGE\DNH\=DQLPSDFWRFFXUVDWORZVSHHG=WKHHOHFWULFSDUNLQJEUDNHLVQRWDSSOLHG,QIRUPDWLRQRQ0HUFHGHVPHFRQQHFWDQGRWKHUVHUYLFHVKWWSZZZPHUFHGHVPH1RWHVRQSDUNLQJXSWKHYHKLFOH,I\RXOHDYHWKHYHKLFOHSDUNHGXSIRUORQJHUWKDQIRXUZHHNVWKHGLVFRQQHFWHGEDWWHU\PD\EHGDPDJHGE\GHHSGLVFKDUJH,I\RXOHDYHWKHYHKLFOHSDUNHGXSIRUORQJHUWKDQVL[ZHHNVLWPD\VXIIHUGLVXVHGDPDJH%)XUWKHULQIRUPDWLRQFDQEHREWDLQHGDWDTXDOLILHGVSHFLDOLVWZRUNVKRS6WDQGE\PRGHH[WHQVLRQRIWKHVWDUWHUEDWƃWHU\VSHULRGRXWRIXVH6WDQGE\PRGHIXQFWLRQ%7KLVIXQFWLRQLVQRWDYDLODEOHIRUDOOPRGHOV,IVWDQGE\PRGHLVDFWLYDWHGWKHYHKLFOHFDQEHSDUNHGIRUDQH[WHQGHGSHULRGRIWLPHZLWKRXWORVLQJSRZHU'ULYLQJDQGSDUNLQJ $

$6WDQGE\PRGHLVFKDUDFWHULVHGE\WKHIROORZLQJ=WKHVWDUWHUEDWWHU\LVSUHVHUYHG=WKHPD[LPXPQRQRSHUDWLRQDOWLPHRXWRIXVHLVGLVSOD\HGLQWKHPXOWLPHGLDV\VWHPGLVSOD\=IXQFWLRQVVXFKDVLQWHULRUSURWHFWLRQRUWRZDZD\SURWHFWLRQDUHQRWDYDLODEOH=WKHFRQQHFWLRQWRRQOLQHVHUYLFHVLVLQWHUUXSƃWHG,IWKHIROORZLQJFRQGLWLRQVDUHIXOILOOHGVWDQGE\PRGHFDQEHDFWLYDWHGRUGHDFWLYDWHGXVLQJWKHPXOWLPHGLDV\VWHP=WKHHQJLQHLVVZLWFKHGRII=WKHLJQLWLRQLVVZLWFKHGRQ([FHHGLQJWKHYHKLFOHVGLVSOD\HGQRQRSHUDƃWLRQDOWLPHPD\FDXVHLQFRQYHQLHQFHLHLWFDQƃQRWEHJXDUDQWHHGWKDWWKHVWDUWHUEDWWHU\ZLOOUHOLDEO\VWDUWWKHHQJLQH7KHVWDUWHUEDWWHU\PXVWEHFKDUJHGILUVWLQWKHIROORZLQJVLWXDWLRQV=WKHYHKLFOHVQRQRSHUDWLRQDOWLPHPXVWEHH[WHQGHG=WKH%DWWHU\FKDUJHLQVXIILFLHQWIRUVWDQGE\PRGHPHVVDJHDSSHDUVLQWKH0%8;PXOWLƃPHGLDV\VWHPGLVSOD\%6WDQGE\PRGHLVDXWRPDWLFDOO\GHDFWLYDWHGZKHQWKHLJQLWLRQLVVZLWFKHGRQ$FWLYDWLQJRUGHDFWLYDWLQJVWDQGE\PRGH5HTXLUHPHQWV=WKHHQJLQHLVVZLWFKHGRII0XOWLPHGLDV\VWHP,.6HWWLQJV.)DKU]HXJ9HKLFOH#6ZLWFK6WDQGE\PRGHRQRURII:KHQ\RXDFWLYDWHWKHIXQFWLRQDSURPSWDSSHDUV#6HOHFW<HV6WDQGE\PRGHLVDFWLYDWHG'ULYLQJDQGGULYLQJVDIHW\V\VWHPV'ULYLQJV\VWHPVDQG\RXUUHVSRQVLELOLW\<RXUYHKLFOHLVHTXLSSHGZLWKGULYLQJV\VWHPVZKLFKDVVLVW\RXLQGULYLQJSDUNLQJDQGPDQRHXƃYULQJWKHYHKLFOH7KHGULYLQJV\VWHPVDUHWRROVDQGGRQRWUHOLHYH\RXRI\RXUUHVSRQVLELOLW\3D\DWWHQWLRQWRWKHWUDIILFFRQGLWLRQVDWDOOWLPHVDQGLQWHUYHQHZKHQQHFHVVDU\%HDZDUHRIWKHOLPLWDWLRQVUHJDUGLQJWKHVDIHXVHRIWKHVHV\VƃWHPV)XQFWLRQRIWKHUDGDUVHQVRUV6RPHGULYLQJDQGGULYLQJVDIHW\V\VWHPVXVHUDGDUVHQVRUVWRPRQLWRUWKHDUHDLQIURQWRIEHKLQGRUQH[WWRWKHYHKLFOHGHSHQGLQJRQWKHYHKLFOHVHTXLSPHQW'HSHQGLQJRQWKHYHKLFOHVHTXLSPHQWWKHUDGDUVHQVRUVDUHLQWHJUDWHGEHKLQGWKHEXPSHUVDQGRUEHKLQGWKHUDGLDWRUJULOOH0HUFHGHVVWDU.HHSWKHVHSDUWVIUHHRIGLUWLFHDQGVOXVKĺSDJH7KHVHQVRUVPXVWQRWEHFRYHUHGIRUH[DPSOHE\ELF\FOHUDFNVRYHUKDQJLQJORDGVRUUDGDUUHIOHFWLQJVWLFNHUV)ROORZLQJDQLPSDFWDQGLQWKHHYHQWRIDVVRFLDWHGGDPDJHZKLFKPD\QRWEHYLVLEOHWRWKHEXPSHUVRUUDGLDWRUJULOOHKDYHWKHIXQFWLRQRIWKHUDGDUVHQVRUVFKHFNHGDWDTXDOLILHGVSHFLDOLVWZRUNVKRS7KHGULYHUDVVLVWDQFHV\VWHPPD\QRORQJHUZRUNSURSHUO\ 'ULYLQJDQGSDUNLQJ$

$2YHUYLHZRIGULYLQJV\VWHPVDQGGULYLQJVDIHW\V\VWHPV,QWKLVVHFWLRQ\RXZLOOILQGLQIRUPDWLRQDERXWWKHIROORZLQJGULYLQJV\VWHPVDQGGULYLQJVDIHW\V\VWHPV=&DPHUDĺSDJH=$%6$QWLORFN%UDNLQJ6\VWHPĺSDJH=$FWLYH'LVWDQFH$VVLVW',67521,&ĺSDJH=$GDSWLYHEUDNHOLJKWVĺSDJH=$FWLYH%UDNH$VVLVWĺSDJH=$FWLYH/DQH.HHSLQJ$VVLVWĺSDJH=$77(17,21$66,67ĺSDJH=%$6%UDNH$VVLVW6\VWHPĺSDJH='<1$0,&%2'<&21752/ĺSDJH=(%'(OHFWURQLF%UDNHIRUFH'LVWULEXWLRQĺSDJH=(63(OHFWURQLF6WDELOLW\3URJUDPĺSDJH=+LOO6WDUW$VVLVW=+2/'IXQFWLRQĺSDJH=67((5&21752/ĺSDJH=$FWLYH6WHHULQJ$VVLVWĺSDJH=/LPLWHUĺSDJH=$FWLYH3DUNLQJ$VVLVWĺSDJH=3DUNLQJ$VVLVW3$5.7521,&ĺSDJH=5HYHUVLQJFDPHUDĺSDJH=&UXLVHFRQWUROĺSDJHĺSDJHĺSDJH=%OLQG6SRW$VVLVWDQG$FWLYH%OLQG6SRW$VVLVWĺSDJH=7UDIILF6LJQ$VVLVWĺSDJH)XQFWLRQVRI$%6DQWLORFNEUDNLQJV\VWHP$%6UHJXODWHVWKHEUDNHSUHVVXUHLQFULWLFDOGULYƃLQJVLWXDWLRQV='XULQJEUDNLQJHJDWPD[LPXPIXOOVWRSEUDNLQJRULQVXIILFLHQWWUDFWLRQRIWKHW\UHVWKHZKHHOVDUHSUHYHQWHGIURPEORFNLQJ=9HKLFOHVWHHUDELOLW\ZKLOHEUDNLQJLVHQVXUHG,I$%6LQWHUYHQHVZKHQEUDNLQJ\RXZLOOIHHODSXOVLQJLQWKHEUDNHSHGDO7KHSXOVDWLQJEUDNHSHGDOFDQEHDQLQGLFDWLRQRIKD]DUGRXVURDGFRQGLWLRQVDQGFDQVHUYHDVDUHPLQGHUWRWDNHH[WUDFDUHZKLOHGULYLQJ6\VWHPOLPLWDWLRQV=$%6LVDFWLYHIURPVSHHGVRIDSSUR[NPK=$%6PD\EHLPSDLUHGRUPD\QRWIXQFWLRQLIDPDOIXQFWLRQKDVRFFXUUHGDQGWKH\HOƃORZ%$%6ZDUQLQJODPSOLJKWVXSFRQWLQƃXRXVO\LQWKHLQVWUXPHQWFOXVWHUDIWHUWKHHQJLQHLVVWDUWHG)XQFWLRQRI%$6%UDNH$VVLVW6\VWHP&:$51,1*5LVNRIDQDFFLGHQWFDXVHGE\DPDOIXQFWLRQLQ%$6%UDNH$VVLVW6\VƃWHP,I%$6LVPDOIXQFWLRQLQJWKHEUDNLQJGLVWDQFHLQDQHPHUJHQF\EUDNLQJVLWXDWLRQLVLQFUHDVHG#'HSUHVVWKHEUDNHSHGDOZLWKIXOOIRUFHLQHPHUJHQF\EUDNLQJVLWXDWLRQV$%6SUHYHQWVWKHZKHHOVIURPORFNLQJ'ULYLQJDQGSDUNLQJ $

$%$6VXSSRUWV\RXUHPHUJHQF\EUDNLQJVLWXDWLRQZLWKDGGLWLRQDOEUDNHIRUFH,I\RXGHSUHVVWKHEUDNHSHGDOTXLFNO\%$6LVDFWLYDWHG=%$6DXWRPDWLFDOO\ERRVWVWKHEUDNHSUHVƃVXUH=%$6FDQVKRUWHQWKHEUDNLQJGLVWDQFH=$%6SUHYHQWVWKHZKHHOVIURPORFNLQJ7KHEUDNHVZLOOIXQFWLRQDVXVXDORQFH\RXUHOHDVHWKHEUDNHSHGDO%$6LVGHDFWLYDWHG)XQFWLRQVRI(63(OHFWURQLF6WDELOLW\3URƃJUDP&:$51,1*5LVNRIVNLGGLQJLI(63LVPDOIXQFWLRQLQJ,I(63LVPDOIXQFWLRQLQJ(63FDQQRWFDUU\RXWYHKLFOHVWDELOLVDWLRQ,QDGGLWLRQRWKHUGULYLQJVDIHW\V\VWHPVDUHVZLWFKHGRII#'ULYHRQFDUHIXOO\#+DYH(63FKHFNHGDWDTXDOLILHGVSHƃFLDOLVWZRUNVKRS&:$51,1*5LVNRIVNLGGLQJLI(63LVGHDFWLYDWHG,I\RXGHDFWLYDWH(63(63FDQQRWFDUU\RXWYHKLFOHVWDELOLVDWLRQ#(63VKRXOGRQO\EHGHDFWLYDWHGLQWKHIROORZLQJVLWXDWLRQV(63FDQPRQLWRUDQGLPSURYHGULYLQJVWDELOLW\DQGWUDFWLRQLQWKHIROORZLQJVLWXDWLRQVZLWKLQSK\VLFDOOLPLWV=:KHQSXOOLQJDZD\RQZHWRUVOLSSHU\FDUULDƃJHZD\V=:KHQEUDNLQJ=9HKLFOHVZLWKWUDLOHUKLWFKLQWUDLOHURSHUDƃWLRQIURPVSHHGVRINPKLIWKHYHKLFOHWUDLOHUFRPELQDWLRQEHJLQVWRVZD\IURPVLGHWRVLGH=,QVWURQJVLGHZLQGVZKHQ\RXDUHGULYLQJIDVWHUWKDQNPK,IWKHYHKLFOHGHYLDWHVIURPWKHGLUHFWLRQGHVLUHGE\WKHGULYHU(63FDQVWDELOLVHWKHYHKLFOHE\LQWHUYHQLQJLQWKHIROORZLQJZD\V=2QHRUPRUHZKHHOVDUHEUDNHG=7KHHQJLQHRXWSXWLVDGDSWHGDFFRUGLQJWRWKHVLWXDWLRQ(63LVGHDFWLYDWHGLIWKH(632))»ZDUQƃLQJODPSOLJKWVXSFRQWLQXRXVO\LQWKHLQVWUXPHQWFOXVWHU='ULYLQJVWDELOLW\ZLOOQRORQJHUEHLPSURYHG=9HKLFOHVZLWKWUDLOHUKLWFKVWDELOLVDWLRQRIWKHYHKLFOHWUDLOHUFRPELQDWLRQLVQRORQJHUDFWLYH=&URVVZLQG$VVLVWLVQRORQJHUDFWLYH=7KHGULYHZKHHOVFRXOGVSLQ=(76(76WUDFWLRQFRQWUROLVVWLOODFWLYH%:KHQ(63LVGHDFWLYDWHG\RXDUHVWLOODVVLVƃWHGE\(63ZKHQEUDNLQJ(63LVLQWHUYHQLQJLIWKHå(63ZDUQLQJODPSIODVKHVLQWKHLQVWUXPHQWFOXVWHU='RQRWGHDFWLYDWH(63 'ULYLQJDQGSDUNLQJ$

$=2QO\GHSUHVVWKHDFFHOHUDWRUSHGDODVIDUDVLVQHFHVVDU\=$GDSW\RXUGULYLQJVW\OHWRVXLWWKHFXUUHQWURDGDQGZHDWKHUFRQGLWLRQV,WPD\EHEHVWWRGHDFWLYDWH(63LQWKHIROORZƃLQJVLWXDWLRQV=:KHQXVLQJVQRZFKDLQV=,QGHHSVQRZ=2QVDQGRUJUDYHO%6SLQQLQJWKHZKHHOVUHVXOWVLQDFXWWLQJDFWLRQZKLFKSURYLGHVEHWWHUJULS,IWKH(63åZDUQLQJODPSOLJKWVXSFRQWLQXƃRXVO\(63LVQRWDYDLODEOHGXHWRDPDOIXQFWLRQ2EVHUYHWKHIROORZLQJLQIRUPDWLRQ=ZDUQLQJDQGLQGLFDWRUODPSVĺSDJH=GLVSOD\PHVVDJHVĺSDJH(76(76(OHFWURQLF7UDFWLRQ6\VWHP(76(76WUDFWLRQFRQWUROLVSDUWRI(63DQGPDNHVLWSRVVLEOHWRSXOODZD\DQGDFFHOHUDWHRQDVOLSSHU\FDUULDJHZD\(76(76FDQLPSURYHWKHYHKLFOHVWUDFWLRQE\LQWHUYHQLQJLQWKHIROORZLQJZD\V=7KHGULYHZKHHOVDUHEUDNHGLQGLYLGXDOO\LIWKH\VSLQ=0RUHGULYHWRUTXHLVWUDQVIHUUHGWRWKHZKHHORUZKHHOVZLWKWUDFWLRQ,QIOXHQFHRIGULYHSURJUDPVRQ(637KHGULYHSURJUDPVHQDEOH(63WRDGDSWWRGLIƃIHUHQWZHDWKHUDQGURDGFRQGLWLRQVDVZHOODVWKHGULYHUVSUHIHUUHGGULYLQJVW\OH<RXFDQVHOHFWWKHGULYHSURJUDPVXVLQJWKH'<1$0,&6(/(&7VZLWFKĺSDJH'ULYLQJDQGSDUNLQJ $

$(63FKDUDFWHULVWLFVSHUGULYHSURJUDP'ULYHSURJUDP (63PRGH &KDUDFWHULVWLFV&&RPIRUW((FRQRP\(63&RPIRUW 7KHVHGULYHSURJUDPVSURYLGHWKHLGHDOEDODQFHEHWZHHQWUDFWLRQDQGVWDELOLW\6HOHFWGULYHSURJUDP(RU&LQGLIILFXOWURDGFRQƃGLWLRQVVXFKDVVQRZRULFHRUZKHQWKHURDGLVZHWIURPUDLQ66SRUW (636SRUW 7KLVGULYHSURJUDPFRQWLQXHVWRRIIHUVWDELOLW\EXWZLWKDVSRUW\VHWXSZKLFKDOORZVWKHHQWKXƃVLDVWLFGULYHUDPRUHDFWLYHGULYLQJVW\OH2QO\VHOHFWGULYHSURJUDP6LQJRRGURDGFRQGLƃWLRQVIRUH[DPSOHRQGU\URDGVDQGFOHDUVWUHWFKHVRIURDG$FWLYDWLQJGHDFWLYDWLQJ(63(OHFWURQLF6WDƃELOLW\3URJUDP0XOWLPHGLDV\VWHP,.6HWWLQJV.4XLFNDFFHVV%(63FDQRQO\EHDFWLYDWHGGHDFWLYDWHGXVLQJTXLFNDFFHVVZKHQDWOHDVWRQHRWKHUIXQFWLRQLVDYDLODEOHLQTXLFNDFFHVV(63FDQRWKHUZLVHEHIRXQGLQWKH$VVLVWDQFHPHQX#6HOHFW(63$SURPSWDSSHDUV#6HOHFW2QRU»2II(63LVGHDFWLYDWHGLIWKH»(632))ZDUQƃLQJODPSOLJKWVXSFRQWLQXRXVO\LQWKHLQVWUXPHQWFOXVWHU2EVHUYHWKHLQIRUPDWLRQRQZDUQLQJODPSVDQGGLVSOD\PHVVDJHVZKLFKPD\EHVKRZQLQWKHLQVWUXPHQWFOXVWHU 'ULYLQJDQGSDUNLQJ$

$)XQFWLRQVRI(63&URVVZLQG$VVLVW(63&URVVZLQG$VVLVWGHWHFWVVXGGHQJXVWVRIVLGHZLQGDQGKHOSVWKHGULYHUWRNHHSWKHYHKLƃFOHLQWKHODQH=(63&URVVZLQG$VVLVWLVDFWLYHDWYHKLFOHVSHHGVEHWZHHQNPKDQGNPKZKHQGULYLQJVWUDLJKWDKHDGRUFRUQHULQJVOLJKWO\=7KHYHKLFOHLVVWDELOLVHGE\PHDQVRILQGLYLGƃXDOEUDNHDSSOLFDWLRQRQRQHVLGH)XQFWLRQVRI(63WUDLOHUVWDELOLVDWLRQ&:$51,1*5LVNRIDFFLGHQWLQSRRUURDGDQGZHDWKHUFRQGLWLRQV,QSRRUURDGDQGZHDWKHUFRQGLWLRQVWKHWUDLOHUVWDELOLVDWLRQFDQQRWSUHYHQWOXUFKLQJRIWKHYHKLFOHWUDLOHUFRPELQDWLRQ7UDLOHUVZLWKDKLJKFHQWUHRIJUDYLW\PD\WLSRYHUEHIRUH(63GHWHFWVWKLV#$OZD\VDGDSW\RXUGULYLQJVW\OHWRVXLWWKHFXUUHQWURDGDQGZHDWKHUFRQGLƃWLRQV:KHQGULYLQJZLWKDWUDLOHU(63FDQVWDELOLVH\RXUYHKLFOHLIWKHWUDLOHUEHJLQVWRVZHUYHIURPVLGHWRVLGH=(63WUDLOHUVWDELOLVDWLRQLVDFWLYHDERYHVSHHGVRINPK=6OLJKWVZHUYLQJLVUHGXFHGE\PHDQVRIDWDUƃJHWHGLQGLYLGXDOEUDNHDSSOLFDWLRQRQRQHVLGH=,QWKHHYHQWRIVHYHUHVZHUYLQJWKHHQJLQHRXWSXWLVDOVRUHGXFHGDQGDOOZKHHOVDUHEUDNHG(63WUDLOHUVWDELOLVDWLRQPD\EHLPSDLUHGRUPD\QRWIXQFWLRQLI=7KHWUDLOHULVQRWFRQQHFWHGFRUUHFWO\RULVQRWGHWHFWHGSURSHUO\E\WKHYHKLFOH)XQFWLRQRI(%'(OHFWURQLF%UDNHIRUFH'LVƃWULEXWLRQ(%'LVFKDUDFWHULVHGE\WKHIROORZLQJ=0RQLWRULQJDQGUHJXODWLQJWKHEUDNHSUHVVXUHRQWKHUHDUZKHHOV=,PSURYHGGULYLQJVWDELOLW\ZKHQEUDNLQJHVSHFLDOO\RQEHQGV67((5&21752/IXQFWLRQ67((5&21752/KHOSV\RXE\WUDQVPLWWLQJDQRWLFHDEOHVWHHULQJIRUFHWRWKHVWHHULQJZKHHOLQWKHGLUHFWLRQUHTXLUHGIRUYHKLFOHVWDELOLVDWLRQ7KLVVWHHULQJUHFRPPHQGDWLRQLVJLYHQSDUWLFXƃODUO\LQWKHIROORZLQJVLWXDWLRQV=%RWKULJKWZKHHOVRUERWKOHIWZKHHOVDUHRQDZHWRUVOLSSHU\URDGVXUIDFHZKHQ\RXEUDNH=7KHYHKLFOHVWDUWVWRVNLG'ULYLQJDQGSDUNLQJ $

$6\VWHPOLPLWDWLRQV67((5&21752/PD\EHLPSDLUHGRUPD\QRWIXQFWLRQLQWKHIROORZLQJVLWXDWLRQV=(63LVGHDFWLYDWHG=(63LVPDOIXQFWLRQLQJ=7KHVWHHULQJLVPDOIXQFWLRQLQJ,I(63LVPDOIXQFWLRQLQJ\RXZLOOEHDVVLVWHGIXUWKHUE\WKHHOHFWULFSRZHUVWHHULQJ)XQFWLRQRI$FWLYH%UDNH$VVLVW$FWLYH%UDNH$VVLVWFRQVLVWVRI='LVWDQFHZDUQLQJIXQFWLRQ=$XWRQRPRXVEUDNLQJIXQFWLRQ=6LWXDWLRQGHSHQGHQWEUDNLQJDVVLVWDQFH=9HKLFOHVZLWK'ULYLQJ$VVLVWDQFH3DFNƃDJH(YDVLYH6WHHULQJ$VVLVW$FWLYH%UDNH$VVLVWFDQKHOS\RXWRPLQLPLVHWKHULVNRIDFROOLVLRQZLWKYHKLFOHVRUSHGHVWULDQVRUWRUHGXFHWKHHIIHFWVRIVXFKDFROOLVLRQ,I$FWLYH%UDNH$VVLVWKDVGHWHFWHGDULVNRIFROOLƃVLRQ\RXZLOOEHZDUQHGYLVXDOO\DQGDFRXVWLƃFDOO\,I\RXGRQRWUHDFWWRWKHYLVXDORUDFRXVWLFZDUQƃLQJDXWRQRPRXVEUDNLQJFDQEHLQLWLDWHGLQFULWLƃFDOVLWXDWLRQV,QHVSHFLDOO\FULWLFDOVLWXDWLRQV$FWLYH%UDNH$VVLVWFDQLQLWLDWHDXWRQRPRXVEUDNLQJGLUHFWO\,QWKLVFDVHWKHYLVXDODQGDFRXVWLFZDUQLQJRFFXUVVLPXOWDQHRXVO\ZLWKWKHEUDNLQJDSSOLFDƃWLRQ,I\RXDSSO\WKHEUDNH\RXUVHOILQDFULWLFDOVLWXDƃWLRQRUDSSO\WKHEUDNHGXULQJDXWRQRPRXVEUDNƃLQJVLWXDWLRQGHSHQGHQWEUDNLQJDVVLVWDQFHRFFXUV7KHEUDNHSUHVVXUHLQFUHDVHVXSWRPD[ƃLPXPIXOOVWRSEUDNLQJLIQHFHVVDU\,IWKHDXWRQRPRXVEUDNLQJIXQFWLRQRUWKHVLWXDƃWLRQGHSHQGHQWEUDNLQJDVVLVWDQFHLVWULJJHUHGDGGLWLRQDOSUHYHQWLYHPHDVXUHVIRURFFXSDQWSURWHFWLRQ35(6$)(PD\DOVREHLQLWLDWHGLIWKHYHKLFOHLVHTXLSSHGZLWKWKHVH&:$51,1*5LVNRIDQDFFLGHQWFDXVHGE\OLPLWHGGHWHFWLRQSHUIRUPDQFHRI$FWLYH%UDNH$VVLVW$FWLYH%UDNH$VVLVWFDQQRWDOZD\VFOHDUO\LGHQWLI\REMHFWVDQGFRPSOH[WUDIILFVLWXDƃWLRQV,QVXFKFDVHV$FWLYH%UDNH$VVLVWPLJKW=*LYHDZDUQLQJRUEUDNHZLWKRXWUHDVRQ=1RWJLYHDZDUQLQJRUQRWEUDNH#$OZD\VSD\FDUHIXODWWHQWLRQWRWKHWUDIƃILFVLWXDWLRQGRQRWUHO\RQ$FWLYH%UDNH$VVLVWDORQH$FWLYH%UDNH$VVLVWLVRQO\DQDLG7KHGULYHULVUHVSRQVLEOHIRUPDLQWDLQLQJDVXLWDEOHGLVWDQFHWRWKHYHKLFOHLQIURQWYHKLFOHVSHHGDQGIRUEUDNLQJLQJRRGWLPH#%HSUHSDUHGWREUDNHRUVZHUYHLIQHFƃHVVDU\$OVRREVHUYHWKHV\VWHPOLPLWDWLRQVRI$FWLYH%UDNH$VVLVW 'ULYLQJDQGSDUNLQJ$

$7KHLQGLYLGXDOVXEIXQFWLRQVDUHDYDLODEOHLQWKHIROORZLQJVSHHGUDQJHV'LVWDQFHZDUQLQJIXQFWLRQ7KHGLVWDQFHZDUQLQJIXQFWLRQLVVXHVDZDUQLQJDWVSHHGV=)URPDSSUR[LPDWHO\NPKLIRYHUVHYHUDOVHFRQGVWKHGLVWDQFHPDLQWDLQHGWRWKHYHKLƃFOHWUDYHOOLQJLQIURQWLVLQVXIILFLHQWIRUWKHGULYHQVSHHG7KHºGLVWDQFHZDUQLQJODPSWKHQOLJKWVXSLQWKHLQVWUXPHQWFOXVWHU=)URPDSSUR[LPDWHO\NPKLI\RXUYHKLFOHLVFULWLFDOO\FORVHWRDYHKLFOHRUSHGHVWULDQ$QLQWHUPLWWHQWZDUQLQJWRQHVRXQGVDQGWKHºGLVWDQFHZDUQLQJODPSOLJKWVXSLQWKHLQVWUXPHQWFOXVWHU%UDNHLPPHGLDWHO\RUWDNHHYDVLYHDFWLRQSURYLƃGHGLWLVVDIHWRGRVRDQGWKHWUDIILFVLWXDWLRQDOORZVWKLV7KHGLVWDQFHZDUQLQJIXQFWLRQFDQDLG\RXLQWKHIROORZLQJVLWXDWLRQVZLWKDQLQWHUPLWWHQWZDUQLQJWRQHDQGDZDUQLQJODPS9HKLFOHVWUDYHOOLQJLQIURQW6WDWLRQDU\YHKLFOHV &URVVLQJYHKLFOHV 0RYLQJSHGHVWULDQV 6WDWLRQDU\SHGHVƃWULDQV9HKLFOHVZLWKRXW'ULYƃLQJ$VVLVWDQFHSDFNƃDJHXSWRDSSUR[NPKXSWRDSSUR[NPK QRUHDFWLRQ XSWRDSSUR[NPK QRUHDFWLRQ9HKLFOHVZLWK'ULYLQJ$VVLVWDQFHSDFNDJHXSWRDSSUR[NPKXSWRDSSUR[NPKXSWRDSSUR[NPK XSWRDSSUR[NPK XSWRDSSUR[NPK'ULYLQJDQGSDUNLQJ $

$$XWRQRPRXVEUDNLQJIXQFWLRQ7KHDXWRQRPRXVEUDNLQJIXQFWLRQPD\LQWHUYHQHDWVSHHGVVWDUWLQJIURPDSSUR[LPDWHO\NPKLQWKHIROORZLQJVLWXDWLRQV9HKLFOHVWUDYHOOLQJLQIURQW6WDWLRQDU\YHKLFOHV &URVVLQJYHKLFOHV 0RYLQJSHGHVWULDQV 6WDWLRQDU\SHGHVƃWULDQV9HKLFOHVZLWKRXW'ULYƃLQJ$VVLVWDQFHSDFNƃDJHXSWRDSSUR[NPKXSWRDSSUR[NPK QRUHDFWLRQ XSWRDSSUR[NPK QRUHDFWLRQ9HKLFOHVZLWK'ULYLQJ$VVLVWDQFHSDFNDJHXSWRDSSUR[NPKXSWRDSSUR[NPKXSWRDSSUR[NPK XSWRDSSUR[NPK XSWRDSSUR[NPK6LWXDWLRQGHSHQGHQWEUDNLQJDVVLVWDQFH6LWXDWLRQGHSHQGHQWEUDNLQJDVVLVWDQFHPD\LQWHUYHQHDWVSHHGVVWDUWLQJIURPDSSUR[LPDWHO\NPKLQWKHIROORZLQJVLWXDWLRQV9HKLFOHVWUDYHOOLQJLQIURQW6WDWLRQDU\YHKLFOHV &URVVLQJYHKLFOHV 0RYLQJSHGHVWULDQV 6WDWLRQDU\SHGHVƃWULDQV9HKLFOHVZLWKRXW'ULYƃLQJ$VVLVWDQFHSDFNƃDJHXSWRDSSUR[NPKXSWRDSSUR[NPK QRUHDFWLRQ XSWRDSSUR[NPK QRUHDFWLRQ9HKLFOHVZLWK'ULYLQJ$VVLVWDQFHSDFNDJHXSWRDSSUR[NPKXSWRDSSUR[NPKXSWRDSSUR[NPK XSWRDSSUR[NPK XSWRDSSUR[NPK 'ULYLQJDQGSDUNLQJ$

$&DQFHOOLQJDEUDNHDSSOLFDWLRQRI$FWLYH%UDNH$VVLVW<RXFDQFDQFHODEUDNHDSSOLFDWLRQRI$FWLYH%UDNH$VVLVWDWDQ\WLPHE\=)XOO\GHSUHVVLQJWKHDFFHOHUDWRUSHGDORUZLWKNLFNGRZQ=9HKLFOHVZLWKRXW'ULYLQJ$VVLVWDQFHSDFNƃDJHUHOHDVLQJWKHEUDNHSHGDO$FWLYH%UDNH$VVLVWPD\FDQFHOWKHEUDNHDSSOLƃFDWLRQZKHQRQHRIWKHIROORZLQJFRQGLWLRQVLVIXOILOOHG=<RXPDQRHXYUHWRDYRLGWKHREVWDFOH=7KHUHLVQRORQJHUDULVNRIFROOLVLRQ=$QREVWDFOHLVQRORQJHUGHWHFWHGLQIURQWRI\RXUYHKLFOH(YDVLYH6WHHULQJ$VVLVWRQO\YHKLFOHVZLWK'ULYLQJ$VVLVWDQFH3DFNDJH(YDVLYH6WHHULQJ$VVLVWKDVWKHIROORZLQJFKDUDFƃWHULVWLFV=&DQGHWHFWVWDWLRQDU\RUPRYLQJSHGHVWULDQV=&DQDVVLVWWKHGULYHUZLWKDGGLWLRQDOVWHHULQJDVVLVWDQFHLILWGHWHFWVDVZHUYLQJPDQRHXƃYUH=&DQEHDFWLYDWHGE\DQDEUXSWVWHHULQJPRYHƃPHQWGXULQJDVZHUYLQJPDQRHXYUH=&DQDVVLVWGXULQJVZHUYLQJDQGVWUDLJKWHQLQJRIWKHYHKLFOH=&DQUHDFWIURPDVSHHGRIDSSUR[LPDWHO\NPKXSWRDVSHHGRIDSSUR[LPDWHO\NPK<RXFDQSUHYHQWWKHDVVLVWDQFHDWDQ\WLPHE\DFWLYHO\VWHHULQJ&:$51,1*5LVNRIDQDFFLGHQWGHVSLWH(YDVLYH6WHHULQJ$VVLVW(YDVLYH6WHHULQJ$VVLVWFDQQRWDOZD\VFOHDUO\LGHQWLI\REMHFWVDQGFRPSOH[WUDIILFVLWXDƃWLRQV,QDGGLWLRQWKHVWHHULQJVXSSRUWRI(YDVLYH6WHHULQJ$VVLVWLVJHQHUDOO\QRWVXIILFLHQWWRDYRLGDFROOLVLRQ,QVXFKFDVHV(YDVLYH6WHHULQJ$VVLVWFDQ=JLYHDQXQQHFHVVDU\ZDUQLQJRUSURYLGHDVVLVWDQFH=QRWJLYHDZDUQLQJRUQRWSURYLGHDVVLVƃWDQFH#$OZD\VSD\FDUHIXODWWHQWLRQWRWKHWUDIƃILFVLWXDWLRQGRQRWUHO\RQ(YDVLYH6WHHULQJ$VVLVWDORQH#%HUHDG\WREUDNHDQGWDNHHYDVLYHDFWLRQLIQHFHVVDU\#3UHYHQWWKHDVVLVWDQFHE\DFWLYHO\VWHHUƃLQJLQQRQFULWLFDOGULYLQJVLWXDWLRQV#'ULYHDWDQDSSURSULDWHVSHHGLISHGHVƃWULDQVDUHFORVHWRWKHSDWKRI\RXUYHKLƃFOH$OVRREVHUYHWKHV\VWHPOLPLWDWLRQVRI(YDVLYH6WHHULQJ$VVLVW'ULYLQJDQGSDUNLQJ $

$6\VWHPOLPLWDWLRQV7KHV\VWHPPD\EHLPSDLUHGRUPD\QRWIXQFWLRQLQWKHIROORZLQJVLWXDWLRQV=,QVQRZUDLQIRJKHDY\VSUD\LIWKHUHLVJODUHLQGLUHFWVXQOLJKWRULQJUHDWO\YDU\LQJOLJKWFRQGLWLRQV=,IWKHVHQVRUVDUHGLUW\PLVWHGXSGDPDJHGRUFRYHUHG=,IWKHVHQVRUVPDOIXQFWLRQGXHWRRWKHUUDGDUVRXUFHLQWHUIHUHQFHIRUH[DPSOHVWURQJUDGDUUHIOHFWLRQVLQPXOWLVWRUH\FDUSDUNV=,IDORVVRIW\UHSUHVVXUHRUDGHIHFWLYHW\UHKDVEHHQGHWHFWHGDQGGLVSOD\HG=)XOOV\VWHPSHUIRUPDQFHLVQRWDYDLODEOHIRUDIHZVHFRQGVDIWHUVZLWFKLQJRQWKHLJQLWLRQRUDIWHUGULYLQJRII7KHV\VWHPPD\QRWUHDFWFRUUHFWO\=,QFRPSOH[WUDIILFVLWXDWLRQVZKHUHREMHFWVFDQQRWDOZD\VEHFOHDUO\LGHQWLILHG=7RSHGHVWULDQVRUYHKLFOHVLIWKH\PRYHTXLFNO\LQWRWKHVHQVRUGHWHFWLRQUDQJH=7RSHGHVWULDQVZKRDUHKLGGHQE\RWKHUREMHFWV=,IWKHW\SLFDORXWOLQHRIDSHGHVWULDQFDQQRWEHGLVWLQJXLVKHGIURPWKHEDFNJURXQG=,IDSHGHVWULDQLVQRWUHFRJQLVHGDVVXFKHJGXHWRVSHFLDOFORWKLQJRURWKHUREMHFWV=2QEHQGVZLWKDWLJKWUDGLXV6HWWLQJ$FWLYH%UDNH$VVLVW5HTXLUHPHQWV=7KHLJQLWLRQLVVZLWFKHGRQ0XOWLPHGLDV\VWHP,.6HWWLQJV.$VVLVWDQFH.$FWLYH%UDNH$VVLVW7KHIROORZLQJVHWWLQJVDUHDYDLODEOH=(DUO\=0HGLXP=/DWH#6HOHFWDVHWWLQJ7KHVHWWLQJLVUHWDLQHGZKHQWKHYHKLFOHLVQH[WVWDUWHG'HDFWLYDWLQJ$FWLYH%UDNH$VVLVW%,WLVUHFRPPHQGHGWKDW\RXDOZD\VOHDYH$FWLYH%UDNH$VVLVWDFWLYDWHG#6HOHFW2II7KHGLVWDQFHZDUQLQJIXQFWLRQDQGWKHDXWRQƃRPRXVEUDNLQJIXQFWLRQDUHGHDFWLYDWHG9HKLFOHVZLWKRXW'ULYLQJ$VVLVWDQFHSDFNƃDJHZKHQWKHYHKLFOHLVQH[WVWDUWHGWKHPHGLXPVHWWLQJLVDXWRPDWLFDOO\VHOHFWHG9HKLFOHVZLWK'ULYLQJ$VVLVWDQFHSDFNƃDJH(YDVLYH6WHHULQJ$VVLVWLVQRWDYDLODEOH:KHQWKHLJQLWLRQLVQH[WVWDUWHGWKHPLGGOHVHWWLQJLVVHOHFWHGDXWRPDWLFDOO\DQG(YDVLYH6WHHULQJ$VVLVWLVDYDLODEOH%,I$FWLYH%UDNH$VVLVWLVGHDFWLYDWHGWKH¤V\PERODSSHDUVLQWKHVWDWXVEDURIWKHPXOWLIXQFWLRQGLVSOD\$GDSWLYH%UDNH/LJKWVIXQFWLRQ$GDSWLYH%UDNH/LJKWVZDUQIROORZLQJWUDIILFLQDQHPHUJHQF\EUDNLQJVLWXDWLRQ=%\IODVKLQJEUDNHODPSV 'ULYLQJDQGSDUNLQJ$

$=%\DFWLYDWLQJWKHKD]DUGZDUQLQJOLJKWV,IWKHYHKLFOHLVEUDNHGVKDUSO\IURPVSHHGVDERYHNPKWKHEUDNHODPSVIODVKUDSLGO\7KLVSURYLGHVWUDIILFWUDYHOOLQJEHKLQG\RXZLWKDQHYHQPRUHQRWLFHDEOHZDUQLQJ,IWKHYHKLFOHLVWUDYHOOLQJDWVSHHGVRIPRUHWKDQNPKDWWKHEHJLQQLQJRIWKHEUDNHDSSOLFDƃWLRQWKHKD]DUGZDUQLQJOLJKWVVZLWFKRQRQFHWKHYHKLFOHLVVWDWLRQDU\:KHQSXOOLQJDZD\DJDLQWKHKD]DUGZDUQLQJOLJKWVVZLWFKRIIDXWRƃPDWLFDOO\DWDSSUR[LPDWHO\NPK<RXFDQDOVRVZLWFKRIIWKHKD]DUGZDUQLQJOLJKWVXVLQJWKHKD]DUGZDUQLQJEXWWRQ&UXLVHFRQWURODQGOLPLWHU)XQFWLRQRIFUXLVHFRQWURO&UXLVHFRQWURODFFHOHUDWHVDQGEUDNHVWKHYHKLƃFOHDXWRPDWLFDOO\LQRUGHUWRPDLQWDLQDSUHYLƃRXVO\VWRUHGVSHHG,I\RXDFFHOHUDWHWRRYHUWDNHIRUH[DPSOHWKHVWRUHGVSHHGLVQRWGHOHWHG,I\RXUHPRYH\RXUIRRWIURPWKHDFFHOHUDWRUSHGDODIWHURYHUWDNLQJFUXLVHFRQWUROZLOOUHVXPHVSHHGUHJXODWLRQEDFNWRWKHVWRUHGVSHHG&UXLVHFRQWUROLVRSHUDWHGXVLQJWKHFRUUHVSRQGƃLQJVWHHULQJZKHHOEXWWRQV<RXFDQVWRUHDQ\URDGVSHHGDERYHNPKXSWRWKHPD[LPXPURDGVSHHGRUWRWKHVHWZLQWHUW\UHOLPLW,I\RXIDLOWRDGDSW\RXUGULYLQJVW\OHFUXLVHFRQƃWUROFDQQHLWKHUUHGXFHWKHULVNRIDQDFFLGHQWQRURYHUULGHWKHODZVRISK\VLFV,WFDQQRWWDNHLQWRDFFRXQWURDGZHDWKHURUWUDIILFFRQGLWLRQV&UXLVHFRQWUROLVRQO\DQDLG<RXDUHUHVSRQVLEOHIRUWKHGLVWDQFHWRWKHYHKLFOHLQIURQWIRUYHKLƃFOHVSHHGIRUEUDNLQJLQJRRGWLPHDQGIRUVWD\ƃLQJLQODQH'LVSOD\VLQWKHPXOWLIXQFWLRQGLVSOD\7KHVWDWXVRIFUXLVHFRQWURODQGWKHVWRUHGVSHHGDUHVKRZQLQWKHPXOWLIXQFWLRQGLVSOD\&UXLVHFRQWUROLVVHOHFWHG6SHHGLVVDYHGFUXLVHFRQWUROLVGHDFWLYDWHG6SHHGLVVDYHGFUXLVHFRQWUROLVDFWLYDWHG%7KHVHJPHQWVH[WHQGLQJIURPWKHFXUUHQWVWRUHGVSHHGWRWKHHQGRIWKHVFDOHRUWRWKHVHWZLQWHUW\UHOLPLWOLJKWXSLQWKHVSHHGRPHWHU6\VWHPOLPLWDWLRQV&UXLVHFRQWUROPD\EHXQDEOHWRPDLQWDLQWKHVWRUHGVSHHGRQXSKLOOJUDGLHQWV7KHVWRUHGVSHHGLVUHVXPHGZKHQWKHJUDGLHQWHYHQVRXW&KDQJHLQWRDORZHUJHDULQJRRGWLPHRQORQJDQGVWHHSGRZQKLOOJUDGLHQWV7DNHSDUWLFXODU'ULYLQJDQGSDUNLQJ $

$QRWHRIWKLVZKHQGULYLQJDODGHQYHKLFOH%\GRLQJVR\RXZLOOPDNHXVHRIWKHEUDNLQJHIIHFWRIWKHHQJLQH7KLVUHOLHYHVWKHORDGRQWKHEUDNHV\VWHPDQGSUHYHQWVWKHEUDNHVIURPRYHUKHDWƃLQJDQGZHDULQJWRRTXLFNO\'RQRWXVHFUXLVHFRQWUROLQWKHIROORZLQJVLWXDƃWLRQV=,QWUDIILFVLWXDWLRQVZKLFKUHTXLUHIUHTXHQWFKDQJHVRIVSHHGHJLQKHDY\WUDIILFRQZLQGLQJURDGV=2QVOLSSHU\URDGV$FFHOHUDWLQJFDQFDXVHWKHGULYHZKHHOVWRORVHWUDFWLRQDQGWKHYHKLFOHFRXOGWKHQVNLG=,I\RXDUHGULYLQJZKHQYLVLELOLW\LVSRRU)XQFWLRQRIWKHOLPLWHU7KHOLPLWHUUHVWULFWVWKHVSHHGRIWKHYHKLFOH7RUHGXFHWKHVSHHGVZLIWO\WRWKHVHWVSHHGWKHOLPLWHUDSSOLHVWKHEUDNHVDXWRPDWLFDOO\<RXFDQOLPLWWKHVSHHGDVIROORZV=9DULDEOHIRUVSHHGOLPLWVHJLQEXLOWXSDUHDV=3HUPDQHQWIRUORQJWHUPVSHHGUHVWULFWLRQVHJZKHQGULYLQJLQZLQWHUW\UHPRGH7KHYDULDEOHOLPLWHULVRSHUDWHGXVLQJWKHFRUUHƃVSRQGLQJVWHHULQJZKHHOEXWWRQV<RXFDQVWRUHDQ\URDGVSHHGDERYHNPKXSWRWKHPD[LƃPXPURDGVSHHGRUWRWKHVHWZLQWHUW\UHOLPLW<RXFDQDOVRSHUIRUPVHWWLQJVZKLOHWKHYHKLFOHLVVWDWLRQDU\LIWKHYHKLFOHKDVEHHQVWDUWHG,I\RXIDLOWRDGDSW\RXUGULYLQJVW\OHWKHOLPLWHUFDQQHLWKHUUHGXFHWKHULVNRIDQDFFLGHQWQRURYHUULGHWKHODZVRISK\VLFV,WFDQQRWWDNHLQWRDFFRXQWURDGZHDWKHURUWUDIILFFRQGLWLRQV7KHOLPLWHULVRQO\DQDLG<RXDUHUHVSRQVLEOHIRUWKHGLVWDQFHWRWKHYHKLFOHLQIURQWIRUYHKLFOHVSHHGIRUEUDNLQJLQJRRGWLPHDQGIRUVWD\LQJLQODQH'LVSOD\VLQWKHPXOWLIXQFWLRQGLVSOD\7KHVWDWXVRIWKHOLPLWHUDQGWKHVWRUHGVSHHGDUHVKRZQLQWKHPXOWLIXQFWLRQGLVSOD\/LPLWHULVVHOHFWHG6SHHGLVVWRUHGOLPLWHULVGHDFWLYDWHG6SHHGLVVWRUHGOLPLWHULVDFWLYDWHG%7KHVHJPHQWVLQWKHVSHHGRPHWHUOLJKWXSXSWRWKHFXUUHQWO\VWRUHGVSHHG.LFNGRZQ,I\RXGHSUHVVWKHDFFHOHUDWRUSHGDOEH\RQGWKHSUHVVXUHSRLQWNLFNGRZQWKHOLPLWHUVZLWFKHVWRSDVVLYHPRGH7KH/LPLWHUSDVVLYHPHVVDJHDSSHDUVLQWKHPXOWLIXQFWLRQGLVSOD\ 'ULYLQJDQGSDUNLQJ$

$$IWHUFRPSOHWLRQRINLFNGRZQWKHYDULDEOHOLPƃLWHULVDFWLYDWHGDJDLQLQWKHIROORZLQJVLWXDWLRQV=,IWKHGULYHQVSHHGGURSVEHORZWKHVWRUHGVSHHG=,IWKHVWRUHGVSHHGLVFDOOHGXS=,I\RXVWRUHDQHZVSHHG2SHUDWLQJFUXLVHFRQWURORUWKHYDULDEOHOLPƃLWHU&:$51,1*5LVNRIDFFLGHQWGXHWRVWRUHGVSHHG,I\RXFDOOXSWKHVWRUHGVSHHGDQGWKLVLVORZHUWKDQ\RXUFXUUHQWVSHHGWKHYHKLFOHGHFHOHUDWHV#7DNHLQWRDFFRXQWWKHWUDIILFVLWXDWLRQEHIRUHFDOOLQJXSWKHVWRUHGVSHHG5HTXLUHPHQWV&UXLVHFRQWURO=&UXLVHFRQWUROLVVHOHFWHG=(63PXVWEHDFWLYDWHGEXWQRWLQWHUYHQLQJ=7KHGULYLQJVSHHGLVDWOHDVWNPK=7KHWUDQVPLVVLRQLVLQSRVLWLRQ[9DULDEOHOLPLWHU=7KHYHKLFOHKDVEHHQVWDUWHG=7KHYDULDEOHOLPLWHULVVHOHFWHG6ZLWFKLQJEHWZHHQFUXLVHFRQWURODQGWKHYDULDEOHOLPLWHU#7RVHOHFWFUXLVHFRQWUROSUHVVURFNHUVZLWFKXS#7RVHOHFWWKHYDULDEOHOLPLWHUSUHVVURFNHUVZLWFKGRZQ%9HKLFOHVZLWK$FWLYH'LVWDQFH$VVLVW',67521,&WKHYDULDEOHOLPLWHULVVHOHFWHGE\DGLIIHUHQWEXWWRQĺSDJH$FWLYDWLQJFUXLVHFRQWURORUWKHYDULDEOHOLPƃLWHU#3UHVVURFNHUVZLWFKXS6(7RUGRZQ6(7#5HPRYH\RXUIRRWIURPWKHDFFHOHUDWRUSHGDO7KHFXUUHQWGULYHQVSHHGLVVWRUHGDQGWKHYHKLFOHPDLQWDLQVWKLVVSHHGFUXLVHFRQWURORUGRHVQRWH[FHHGLWOLPLWHU,QFUHDVLQJGHFUHDVLQJVSHHG#3UHVVURFNHUVZLWFKXSGRZQWRWKHSUHVƃVXUHSRLQW7KHVWRUHGVSHHGLVLQFUHDVHGRUUHGXFHGE\NPKRU'ULYLQJDQGSDUNLQJ $

$#3UHVVDQGKROGURFNHUVZLWFKXSGRZQWRWKHSUHVVXUHSRLQW7KHVWRUHGVSHHGLVLQFUHDVHGRUUHGXFHGLQLQFUHPHQWVRINPKRU#3UHVVURFNHUVZLWFKEH\RQGWKHSUHVVXUHSRLQW7KHVWRUHGVSHHGLVLQFUHDVHGRUUHGXFHGE\NPKRU#3UHVVDQGKROGURFNHUVZLWFKEH\RQGWKHSUHVVXUHSRLQW7KHVWRUHGVSHHGLVLQFUHDVHGRUUHGXFHGLQLQFUHPHQWVRINPKRU#$FFHOHUDWHWKHYHKLFOHWRWKHGHVLUHGVSHHG#3UHVVURFNHUVZLWFKXS$GRSWLQJWKHGHWHFWHGVSHHG,IFUXLVHFRQWUROYDULDEOHOLPLWHULVDFWLYDWHGDQG6SHHG/LPLW$VVLVWRU7UDIILF6LJQ$VVLVWKDVGHWHFWHGDVSHHGUHVWULFWLRQVLJQZLWKDPD[LƃPXPSHUPLVVLEOHVSHHGDQGWKLVLVGLVSOD\HGLQWKHLQVWUXPHQWFOXVWHU#3UHVVURFNHUVZLWFKXS7KHPD[LPXPSHUPLVVLEOHVSHHGVKRZQE\WKHWUDIILFVLJQLVVWRUHGDQGWKHYHKLFOHPDLQWDLQVRUGRHVQRWH[FHHGWKLVVSHHG'HDFWLYDWLQJFUXLVHFRQWURORUWKHYDULDEOHOLPLWHU#3UHVVURFNHUVZLWFK&1&/GRZQ:KHQFUXLVHFRQWURORUWKHYDULDEOHOLPLWHULVGHDFWLYDWHG=5RFNHUVZLWFK6(7RU6(7VDYHVWKHFXUUHQWO\GULYHQVSHHGDQGWKHYHKLFOHPDLQƃWDLQVWKLVVSHHG=5RFNHUVZLWFK5(6FDOOVXSWKHVSHHGODVWVWRUHGDQGWKHYHKLFOHPDLQWDLQVWKLVVSHHG%,I\RXEUDNHGHDFWLYDWH(63RULI(63LQWHUYHQHVFUXLVHFRQWUROLVGHDFWLYDWHG7KHYDULDEOHOLPLWHULVQRWGHDFWLYDWHG:KHQ\RXVZLWFKRIIWKHYHKLFOHWKHODVWVSHHGVWRUHGLVFOHDUHG3HUPDQHQWOLPLWHU,IWKHYHKLFOHVKRXOGQHYHUH[FHHGDVSHFLILFVSHHGHJIRUGULYLQJLQZLQWHUW\UHPRGH\RXFDQVHWWKLVVSHHGZLWKWKHSHUPDQHQWOLPLWHU<RXGRWKLVE\OLPLWLQJWKHVSHHGWRDYDOXHEHWZHHQNPKDQGNPKLQWKHPXOWLƃPHGLDV\VWHPĺSDJH6KRUWO\EHIRUHWKHVHWVSHHGLVUHDFKHGLWDSSHDUVLQWKHPXOWLIXQFWLRQGLVSOD\:KHQ\RXFRQILUPWKHPHVVDJHZLWK8GLVSOD\PHVƃVDJHVQRORQJHUDSSHDUXQWLO\RXVZLWFKRIIWKHYHKLFOH7KHVSHHGZLOORQO\EHGLVSOD\HGDJDLQRQFHWKHYHKLFOHKDVEHHQUHVWDUWHG7KHSHUPDQHQWOLPLWHUGRHVQRWVZLWFKWRSDVƃVLYHPRGHHYHQGXULQJNLFNGRZQDQGWKHGULYHQVSHHGUHPDLQVEHORZWKHVHWVSHHG6HWWLQJWKHVSHHGOLPLWDWLRQIRUZLQWHUW\UHV0XOWLPHGLDV\VWHP,.6HWWLQJV.)DKU]HXJ9HKLƃFOH .:LQWHUW\UHVOLPLW#6HOHFWDVSHHGRUGHDFWLYDWHWKHIXQFWLRQ 'ULYLQJDQGSDUNLQJ$

$$FWLYH'LVWDQFH$VVLVW',67521,&)XQFWLRQRI$FWLYH'LVWDQFH$VVLVW',67521,&$FWLYH'LVWDQFH$VVLVW',67521,&PDLQWDLQVWKHVHWVSHHGRQIUHHIORZLQJURDGV,IYHKLFOHVDKHDGDUHGHWHFWHGWKHVHWGLVWDQFHLVPDLQƃWDLQHGLIQHFHVVDU\XQWLOWKHYHKLFOHFRPHVWRDKDOW7KHYHKLFOHDFFHOHUDWHVRUEUDNHVGHSHQGƃLQJRQWKHGLVWDQFHWRWKHYHKLFOHLQIURQWDQGWKHVHWVSHHG7KHVSHHGDQGGLVWDQFHWRWKHYHKLFOHLQIURQWDUHVHWDQGVDYHGRQWKHVWHHULQJZKHHORQYHKLFOHVZLWKRXWWKH'ULYLQJ$VVLVWDQFH3DFNDJHLQWKHUDQJHEHWZHHQNPKDQGNPKDQGRQYHKLFOHVZLWKWKH'ULYLQJ$VVLVWDQFH3DFNDJHLQWKHUDQJHEHWZHHQNPKDQGNPK2WKHUIHDWXUHVRI$FWLYH'LVWDQFH$VVLVW',67521,&=$GMXVWVWKHGULYLQJVW\OHGHSHQGLQJRQWKHVHOHFWHGGULYHSURJUDPIXHOVDYLQJFRPIRUWƃDEOHRUG\QDPLFĺSDJH=9HKLFOHVZLWK'ULYLQJ$VVLVWDQFH3DFNDJHUHDFWVWRVWDWLRQDU\YHKLFOHVH[FHSWELF\FOHVDQGPRWRUF\FOHVLQXUEDQVSHHGUDQJHVLIFRQGLWLRQVDUHVXIILFLHQWWRHQDEOHGHWHFWLRQ,WDOVRGRHVQRWGHWHFWSHGHVWULDQV=,QLWLDWHVUDSLGDFFHOHUDWLRQWRWKHVWRUHGVSHHGLIWKHWXUQVLJQDOLQGLFDWRULVVZLWFKHGRQWRFKDQJHWRWKHRYHUWDNLQJODQH=9HKLFOHVZLWK'ULYLQJ$VVLVWDQFH3DFNDJHWDNHVRQHVLGHGRYHUWDNLQJUHVWULFWLRQVLQWRDFFRXQWRQPRWRUZD\VRURQPXOWLODQHURDGVZLWKVHSDUDWHFDUULDJHZD\V9HKLFOHVZLWK$FWLYH3DUNLQJ$VVLVWDQG'ULYLQJ$VVLVWDQFH3DFNDJHLIWKHYHKLFOHKDVEHHQEUDNHGWRDVWDQGVWLOORQPXOWLODQHVHSDUDWHFDUULDJHZD\VE\$FWLYH'LVWDQFH$VVLVW',67521,&LWFDQDXWRPDWLFDOO\IROORZWKHYHKLƃFOHLQIURQWGULYLQJRIIDJDLQZLWKLQVHFRQGV,IDFULWLFDOVLWXDWLRQLVGHWHFWHGZKHQGULYLQJRIIDYLVXDODQGDFRXVWLFZDUQLQJLVJLYHQLQGLFDWLQJWKDWWKHGULYHUPXVWQRZWDNHFRQWURORIWKHYHKLƃFOH7KHYHKLFOHLVQRWDFFHOHUDWHGDQ\IXUWKHU$FWLYH'LVWDQFH$VVLVW',67521,&LVRQO\DQDLG7KHGULYHULVUHVSRQVLEOHIRUNHHSLQJDVDIHGLVƃWDQFHWRWKHYHKLFOHLQIURQWIRUYHKLFOHVSHHGDQGIRUEUDNLQJLQJRRGWLPH6\VWHPOLPLWDWLRQV7KHV\VWHPPD\EHLPSDLUHGRUPD\QRWIXQFWLRQLQWKHIROORZLQJLQVWDQFHVIRUH[DPSOH=,QVQRZUDLQIRJKHDY\VSUD\LIWKHUHLVJODUHLQGLUHFWVXQOLJKWRULQJUHDWO\YDU\LQJOLJKWFRQGLWLRQV=7KHZLQGVFUHHQLQWKHDUHDRIWKHFDPHUDLVGLUW\PLVWHGXSGDPDJHGRUFRYHUHG=,IWKHUDGDUVHQVRUVDUHGLUW\RUFRYHUHG=2QVOLSSHU\URDGVEUDNLQJRUDFFHOHUDWLQJFDQFDXVHWKHGULYHZKHHOVWRORVHWUDFWLRQDQGWKHYHKLFOHFRXOGWKHQVNLG=,QPXOWLVWRUH\FDUSDUNVRURQURDGVZLWKVWHHSXSKLOORUGRZQKLOOJUDGLHQWV'ULYLQJDQGSDUNLQJ $

$'RQRWXVH$FWLYH'LVWDQFH$VVLVW',67521,&LQWKHVHVLWXDWLRQV&:$51,1*5LVNRIDFFLGHQWIURPDFFHOHUƃDWLRQRUEUDNLQJE\$FWLYH'LVWDQFH$VVLVW',67521,&$FWLYH'LVWDQFH$VVLVW',67521,&PD\DFFHOƃHUDWHRUEUDNHLQWKHIROORZLQJFDVHVIRUH[DPSOH=,IWKHYHKLFOHSXOOVDZD\XVLQJ$FWLYH'LVƃWDQFH$VVLVW',67521,&=,IWKHVWRUHGVSHHGLVFDOOHGXSDQGLVFRQVLGHUDEO\IDVWHURUVORZHUWKDQWKHFXUUHQWO\GULYHQVSHHG=,I$FWLYH'LVWDQFH$VVLVW',67521,&QRORQJHUGHWHFWVDYHKLFOHLQIURQWRUGRHVQRWUHDFWWRUHOHYDQWREMHFWV#$OZD\VFDUHIXOO\REVHUYHWKHWUDIILFFRQƃGLWLRQVDQGEHUHDG\WREUDNHDWDOOWLPHV#7DNHLQWRDFFRXQWWKHWUDIILFVLWXDWLRQEHIRUHFDOOLQJXSWKHVWRUHGVSHHG&:$51,1*5LVNRIDFFLGHQWGXHWRLQVXIƃILFLHQWGHFHOHUDWLRQE\$FWLYH'LVWDQFH$VVLVW',67521,&$FWLYH'LVWDQFH$VVLVW',67521,&EUDNHV\RXUYHKLFOHZLWKXSWRRIWKHPD[LPXPSRVVLEOHGHFHOHUDWLRQ,IWKLVGHFHOHUDWLRQLVQRWVXIILFLHQW$FWLYH'LVWDQFH$VVLVW',67521,&DOHUWV\RXZLWKDYLVXDODQGDFRXVWLFZDUQLQJ#,QWKHVHFDVHVDGMXVW\RXUVSHHGDQGNHHSDVXIILFLHQWGLVWDQFH#%UDNHWKHYHKLFOH\RXUVHOIDQGRUWDNHHYDVLYHDFWLRQ&:$51,1*5LVNRIDFFLGHQWLIGHWHFWLRQIXQFWLRQRI$FWLYH'LVWDQFH$VVLVW',67521,&LVLPSDLUHG$FWLYH'LVWDQFH$VVLVW',67521,&GRHVQRWUHDFWRURQO\SDUWLDOO\UHDFWV=:KHQGULYLQJRQDGLIIHUHQWOLQHWRWKHYHKLFOHDKHDGRUFKDQJLQJODQH=7RSHGHVWULDQVDQLPDOVELF\FOHVRUPRWRUELNHVVWDWLRQDU\YHKLFOHVRUXQH[ƃSHFWHGREVWDFOHV=7RFRPSOH[WUDIILFVLWXDWLRQV=7RRQFRPLQJYHKLFOHVDQGFURVVLQJWUDIƃILF$FWLYH'LVWDQFH$VVLVW',67521,&FDQQHLƃWKHUJLYHZDUQLQJVQRULQWHUYHQHLQVXFKVLWƃXDWLRQV#$OZD\VREVHUYHWKHWUDIILFFRQGLWLRQVFDUHIXOO\DQGUHDFWDFFRUGLQJO\2SHUDWLQJ$FWLYH'LVWDQFH$VVLVW',67521,&5HTXLUHPHQWV=7KHYHKLFOHKDVEHHQVWDUWHG=7KHHOHFWULFSDUNLQJEUDNHLVUHOHDVHG=(63LVDFWLYDWHGDQGLVQRWLQWHUYHQLQJ=7KHWUDQVPLVVLRQLVLQSRVLWLRQ[=$OOWKHGRRUVDUHFORVHG=&KHFNRIWKHUDGDUVHQVRUV\VWHPVXFFHVVƃIXOO\FRPSOHWHGYHKLFOHWUDYHOOLQJIDVWHUWKDQNPK 'ULYLQJDQGSDUNLQJ$

$6ZLWFKLQJEHWZHHQ$FWLYH'LVWDQFH$VVLVW',67521,&DQGWKHOLPLWHU#3UHVVEXWWRQ$FWLYDWLQJWKHYDULDEOHOLPLWHURU$FWLYH'LVƃWDQFH$VVLVW',67521,&#7RDFWLYDWHZLWKRXWDVWRUHGVSHHGSUHVVURFNHUVZLWFKXS6(7RUGRZQ6(7RUSUHVVURFNHUVZLWFKXS5HPRYH\RXUIRRWIURPWKHDFFHOHUDWRUSHGDO$FWLYH'LVƃWDQFH$VVLVW',67521,&7KHFXUUHQWGULYHQVSHHGLVVWRUHGDQGPDLQƃWDLQHG$FWLYH'LVWDQFH$VVLVW',67521,&RUOLPLWHGYDULDEOHOLPLWHUE\WKHYHKLFOHRU#7RDFWLYDWHZLWKDVWRUHGVSHHGSUHVVURFNHUVZLWFKXS5HPRYH\RXUIRRWIURPWKHDFFHOHUDWRUSHGDO$FWLYH'LVWDQFH$VVLVW',67521,&%,IURFNHUVZLWFKLVSUHVVHGXSWZLFHZKLOHGULYLQJ$FWLYH'LVWDQFH$VVLVW',67521,&RUWKHYDULDEOHOLPLWHULVDFWLYDWHGZLWKWKHVSHHGUHVWULFWLRQGLVSOD\HGLQWKHLQVWUXPHQWFOXVWHU$FFHSWLQJWKHGLVSOD\HGVSHHGUHVWULFWLRQZKHQ'LVWDQFH$VVLVW',67521,&RUWKHOLPƃLWHULVDFWLYDWHG#3UHVVURFNHUVZLWFK5(6XS7KHVSHHGOLPLWGLVSOD\HGLQWKHLQVWUXPHQWFOXVWHULVDGRSWHGDVWKHVWRUHGVSHHG7KHYHKLFOHDGDSWVLWVVSHHGWRWKDWRIWKHYHKLFOHLQIURQWEXWRQO\XSWRWKHVWRUHGVSHHG3XOOLQJDZD\ZLWK$FWLYH'LVWDQFH$VVLVW',67521,&#5HPRYH\RXUIRRWIURPWKHEUDNHSHGDO#3UHVVURFNHUVZLWFK5(6XSRU#'HSUHVVWKHDFFHOHUDWRUSHGDOEULHIO\DQGGLVƃWLQFWO\7KHIXQFWLRQVRI$FWLYH'LVWDQFH$VVLVW',67521,&FRQWLQXHWREHFDUULHGRXW'HDFWLYDWLQJ$FWLYH'LVWDQFH$VVLVW',67521,&&:$51,1*5LVNRIDFFLGHQWGXHWR$FWLYH'LVWDQFH$VVLVW',67521,&VWLOOEHLQJDFWLYDWHGZKHQ\RXOHDYHWKHGULYHUVVHDW,I\RXOHDYHWKHGULYHUVVHDWZKLOHWKHYHKLFOHLVEHLQJEUDNHGE\$FWLYH'LVWDQFH$VVLVW',67521,&RQO\WKHYHKLFOHFDQUROODZD\#$OZD\VGHDFWLYDWH$FWLYH'LVWDQFH$VVLVW',67521,&DQGVHFXUHWKHYHKLƃFOHWRSUHYHQWLWIURPUROOLQJDZD\EHIRUH\RXOHDYHWKHGULYHUVVHDW'ULYLQJDQGSDUNLQJ $

$#3UHVVURFNHUVZLWFK&1&/GRZQ,QFUHDVLQJRUUHGXFLQJWKHVSHHG#3UHVVURFNHUVZLWFKXS6(7RUGRZQ6(7WRWKHSUHVVXUHSRLQW7KHVWRUHGVSHHGLVLQFUHDVHGRUUHGXFHGE\NPKRU#3UHVVDQGKROGURFNHUVZLWFKXSGRZQWRWKHSUHVVXUHSRLQW7KHVWRUHGVSHHGLVLQFUHDVHGRUUHGXFHGLQLQFUHPHQWVRINPKRU#3UHVVURFNHUVZLWFKEH\RQGWKHSUHVVXUHSRLQW7KHVWRUHGVSHHGLVLQFUHDVHGRUUHGXFHGE\NPKRU#3UHVVDQGKROGURFNHUVZLWFKEH\RQGWKHSUHVVXUHSRLQW7KHVWRUHGVSHHGLVLQFUHDVHGRUUHGXFHGLQLQFUHPHQWVRINPK5HGXFLQJRULQFUHDVLQJWKHVSHFLILHGGLVƃWDQFHIURPWKHYHKLFOHLQIURQW#7RLQFUHDVHWKHVSHFLILHGGLVWDQFHSUHVVURFNHUVZLWFKGRZQ#7RUHGXFHWKHVSHFLILHGGLVWDQFHSUHVVURFNHUVZLWFKXS)XQFWLRQRI$FWLYH6SHHG/LPLW$VVLVW%7KHIROORZLQJIXQFWLRQLVFRXQWU\GHSHQGHQWDQGRQO\DYDLODEOHLQFRQMXQFWLRQZLWKWKH'ULYLQJ$VVLVWDQFH3DFNDJH,IDFKDQJHLQWKHVSHHGOLPLWLVGHWHFWHGDQG$FWLYH'LVWDQFH$VVLVW',67521,&LVDFWLYDWHG$FWLYH'LVWDQFH$VVLVW',67521,&DVVXPHVWKLVQHZVSHHGDVWKHVWRUHGVSHHG7KHGULYHQVSHHGLVDGMXVWHGZKHQWKHYHKLFOHLVOHYHOZLWKWKHWUDIILFVLJQDWWKHODWHVW,QWKHFDVHRIVLJQVLQGLFDWLQJHQWU\LQWRDQXUEDQDUHDWKHVSHHGLVDGDSWHGEHIRUHKDQG7KHVSHHGOLPLWGLVSOD\LQWKH,QVWUXPHQW'LVSOD\LVDOZD\V 'ULYLQJDQGSDUNLQJ$

$XSGDWHGZKHQWKHYHKLFOHLVOHYHOZLWKWKHWUDIILFVLJQ,IWKHUHLVQRVSHHGUHVWULFWLRQRQDQXQOLPLWHGVWUHWFKRIURDGHJRQDPRWRUZD\WKHUHFRPƃPHQGHGVSHHGLVDGRSWHGDVWKHVWRUHGVSHHG7KHV\VWHPXVHVWKHVSHHGVWRUHGRQDQXQOLPLƃWHGVWUHWFKRIURDGDVWKHUHFRPPHQGHGVSHHG,I\RXGRQRWDOWHUWKHVWRUHGVSHHGRQDQXQOLPLƃWHGVWUHWFKRIURDGWKHUHFRPPHQGHGVSHHGLVNPK,I$FWLYH'LVWDQFH$VVLVW',67521,&KDVEHHQSXWLQWRSDVVLYHPRGHE\SUHVVLQJWKHDFFHOHUDƃWRUSHGDORQO\VSHHGOLPLWVZKLFKDUHKLJKHUWKDQWKHVHWVSHHGDUHDGRSWHG$FWLYH6SHHG/LPLW$VVLVWFDQEHFRQILJXUHGLQWKHPXOWLPHGLDV\VWHPĺSDJH$FWLYH6SHHG/LPLW$VVLVWLVRQO\DQDLG7KHGULYHULVUHVSRQVLEOHIRUNHHSLQJDVDIHGLVWDQFHWRWKHYHKLFOHLQIURQWIRUYHKLFOHVSHHGDQGIRUEUDNLQJLQJRRGWLPH7KHPD[LPXPSHUPLVVLEOHVSHHGDOVRGHSHQGVRQIDFWRUVVXFKDVWKHURDGVXUIDFHDQGWUDIILFFRQGLWLRQV6\VWHPOLPLWDWLRQV7HPSRUDU\VSHHGUHVWULFWLRQVHJIRUDFHUWDLQWLPHRUGXHWRZHDWKHUFRQGLWLRQVFDQQRWEHSURSHUO\GHWHFWHGE\WKHV\VWHP7KHPD[LPXPSHUPLVVLEOHVSHHGDSSO\LQJIRUDYHKLFOHZLWKDWUDLOHULVQRWGHWHFWHGE\WKHV\VWHP,QWKHVHVLWƃXDWLRQV\RXPXVWDGMXVW\RXUVSHHG\RXUVHOI&:$51,1*5LVNRIDFFLGHQWGXHWR$FWLYH6SHHG/LPLW$VVLVWDGDSWLQJWKHYHKLFOHVVSHHG7KHVSHHGDGRSWHGE\$FWLYH6SHHG/LPLW$VVLVWPD\EHWRRKLJKRULQFRUUHFWLQVRPHLQGLYLGXDOFDVHVVXFKDV=,QWKHZHWRULQIRJ=:KHQWRZLQJDWUDLOHU#(QVXUHWKDWWKHGULYHQVSHHGFRPSOLHVZLWKWUDIILFUHJXODWLRQV#$GMXVWWKHGULYLQJVSHHGWRVXLWFXUUHQWWUDIILFDQGZHDWKHUFRQGLWLRQV)XQFWLRQRIURXWHEDVHGVSHHGDGDSWDWLRQ%7KHIROORZLQJIXQFWLRQLVFRXQWU\GHSHQGHQWDQGRQO\DYDLODEOHLQFRQMXQFWLRQZLWKWKH'ULYLQJ$VVLVWDQFH3DFNDJH:KHQ'LVWDQFH$VVLVW',67521,&LVDFWLYHWKHIXQFWLRQDGMXVWVWKHVSHHGGHSHQGLQJRQWKHURXWHHYHQWVDKHDG'HSHQGLQJRQWKHGULYHSURƃJUDPVHOHFWHGWKHYHKLFOHQHJRWLDWHVWKHURXWHHYHQWDKHDGLQDIXHOVDYLQJFRPIRUWDEOHRUG\QDPLFPDQQHU:KHQWKHURXWHHYHQWKDVEHHQSDVVHGWKHYHKLFOHDFFHOHUDWHVDJDLQWRWKHVWRUHGVSHHG7KHVHWGLVWDQFHWRWKHYHKLFOHDKHDGYHKLFOHVGHWHFWHGDKHDGDQGVSHHGUHVWULFWLRQVDKHDGDUHWDNHQLQWRDFFRXQW5RXWHEDVHGVSHHGDGMXVWPHQWFDQE\FRQILJƃXUHGLQWKHPXOWLPHGLDV\VWHP5RXWHHYHQWVDKHDGDUH=%HQGV=7MXQFWLRQVURXQGDERXWVDQGWROOVWDWLRQV=7XUQVDQGH[LWV%:KHQWKHWROOVWDWLRQLVUHDFKHG$FWLYH'LVƃWDQFH$VVLVW',67521,&DGRSWVWKHVSHHGDVWKHVWRUHGVSHHG'ULYLQJDQGSDUNLQJ $

$$OVRWKHVSHHGLVUHGXFHGLIWKHWXUQVLJQDOWRFKDQJHODQHVLVVZLWFKHGRQDQGRQHRIWKHIROƃORZLQJVLWXDWLRQVLVGHWHFWHG=7XUQLQJRIIDWMXQFWLRQV=2QVORZLQJGRZQODQHV=2QODQHVDGMDFHQWWRVORZLQJGRZQODQHV7KHGULYHULVUHVSRQVLEOHIRUFKRRVLQJWKHULJKWVSHHGDQGREVHUYLQJRWKHUURDGXVHUV7KLVDSSOLHVLQSDUWLFXODUWRMXQFWLRQVURXQGDERXWVDQGVHWVRIWUDIILFOLJKWVDVURXWHEDVHGVSHHGDGDSWDWLRQGRHVQRWEUDNHWKHYHKLFOHWRDVWDQGƃVWLOO:KHQURXWHJXLGDQFHLVDFWLYHWKHILUVWVSHHGDGMXVWPHQWLVFDUULHGRXWDXWRPDWLFDOO\,IWKHWXUQVLJQDOLQGLFDWRULVVZLWFKHGRQWKHVHOHFWHGURXWHLVFRQILUPHGDQGIXUWKHUVSHHGDGMXVWPHQWLVDFWLYDWHG6SHHGDGMXVWPHQWLVFDQFHOOHGLQWKHIROORZLQJFDVHV=,IWKHWXUQVLJQDOLQGLFDWRULVVZLWFKHGRIIEHIRUHWKHURXWHHYHQW=,IWKHGULYHUGHSUHVVHVWKHDFFHOHUDWRURUEUDNHSHGDOGXULQJWKHSURFHVV6\VWHPOLPLWDWLRQV5RXWHEDVHGVSHHGDGDSWDWLRQGRHVQRWWDNHULJKWRIZD\UHJXODWLRQVLQWRDFFRXQW7KHGULYHULVUHVSRQVLEOHIRUFRPSO\LQJZLWKURDGWUDIILFUHJXODWLRQVDQGGULYLQJDWDVXLWDEOHVSHHG,QGLIILFXOWFRQGLWLRQVHJXQFOHDUURDGVQDUURZODQHVZHWURDGVXUIDFHVVQRZRULFHRUZKHQGULYLQJZLWKDWUDLOHUWKHVSHHGDGMXVWPHQWPDGHE\WKHV\VWHPPD\QRWDOZD\VEHVXLWDEOH,QWKHVHVLWXDWLRQVWKHGULYHUPXVWLQWHUYHQHDFFRUGLQJO\&:$51,1*5LVNRIDFFLGHQWLQVSLWHRIURXWHEDVHGVSHHGDGMXVWPHQW5RXWHEDVHGVSHHGDGMXVWPHQWPLJKWPDOƃIXQFWLRQRUEHWHPSRUDULO\XQDYDLODEOHLQWKHIROORZLQJVLWXDWLRQV=,IPDSGDWDLVQRWXSWRGDWHRUDYDLODEOH=,I\RXGRQRWIROORZWKHVHOHFWHGURXWHJXLGDQFH=,IWKHVHWURXWHLVUHSODQQHG=,QURDGFRQVWUXFWLRQDUHDV=:KHQWRZLQJDWUDLOHU=,QEDGZHDWKHURUURDGFRQGLWLRQV=,IWKHDFFHOHUDWRUSHGDOLVGHSUHVVHG#$GMXVWWKHVSHHGWRWKHWUDIILFVLWXDWLRQ$FWLYH6WHHULQJ$VVLVW)XQFWLRQRI$FWLYH6WHHULQJ$VVLVW$FWLYH6WHHULQJ$VVLVWDVVLVWVWKHGULYHUDWVSHHGVXSWRNPKDQGKHOSVWKHGULYHUWRVWD\LQWKHFHQWUHRIWKHODQHE\PHDQVRIPRGƃHUDWHVWHHULQJLQWHUYHQWLRQV7KHV\VWHPRULHQWVLWVHOIXVLQJGHWHFWHGODQHPDUNLQJV'HSHQGLQJ 'ULYLQJDQGSDUNLQJ$

$RQWKHVSHHGGULYHQ$FWLYH6WHHULQJ$VVLVWXVHVWKHYHKLFOHVDKHDGDVDUHIHUHQFH,IWKHGHWHFƃWLRQRIODQHPDUNLQJVDQGYHKLFOHVDKHDGLVLPSDLUHG$FWLYH6WHHULQJ$VVLVWVZLWFKHVWRSDVƃVLYHPRGH7KHV\VWHPGRHVQRWSURYLGHVXSSRUWLQWKHIRUPRIVWHHULQJLQWHUYHQWLRQV=7KHGULYHULVUHTXLUHGWRNHHSWKHLUKDQGVRQWKHVWHHULQJZKHHODWDOOWLPHVDQGEHDEOHWRLQWHUYHQHDWDQ\WLPHWRFRUUHFWWKHFRXUVHRIWKHYHKLFOHDQGNHHSLWLQODQH=7KHVWDWXVRI$FWLYH6WHHULQJ$VVLVWLVGLVƃSOD\HGLQWKHVWDWXVEDURIWKHPXOWLIXQFWLRQGLVSOD\6WHHULQJDQGFRQWDFWGHWHFWLRQ7KHGULYHULVUHTXLUHGWRNHHSWKHLUKDQGVRQWKHVWHHULQJZKHHODWDOOWLPHVDQGWREHDEOHWRLQWHUYHQHDWDQ\WLPH7KHGULYHUPXVWH[SHFWDFKDQJHIURPDFWLYHWRSDVVLYHPRGHRUYLFHYHUVDDWDQ\WLPH,IWKHV\VWHPUHDFKHVDV\VWHPOLPLWDWLRQRUWKHGULYHUKDVQRWVWHHUHGWKHYHKLFOHIRUDFRQVLGHUƃDEOHSHULRGRIWLPHRUKDVUHPRYHGWKHLUKDQGVIURPWKHVWHHULQJZKHHOWKHV\VWHPZLOOGHSHQGLQJRQWKHVLWXDWLRQILUVWDOHUWWKHGULYHUZLWKDYLVXDOZDUQLQJ'LVSOD\DSSHDUVLQWKHPXOWLIXQFWLRQGLVSOD\,IWKHGULYHUVWLOOGRHVQRWVWHHUWKHYHKLFOHWKHPVHOIRUVWLOOKDVQRWWDNHQKROGRIWKHVWHHULQJZKHHODUHSHDWHGZDUQLQJWRQHVRXQGVLQDGGLWLRQWRWKHYLVXDOZDUQLQJPHVVDJHWRUHPLQGWKHGULYHUWRWDNHFRQWURORIWKHYHKLFOH7KHZDUQLQJPHVVDJHGRHVQRWDSSHDURUGLVDSƃSHDUVLIRQHRIWKHIROORZLQJFRQGLWLRQVDUHPHW=7KHGULYHUVWHHUVWKHYHKLFOH=7KHGULYHUSUHVVHVDVWHHULQJZKHHOEXWWRQRURSHUDWHV7RXFK&RQWURO$FWLYH6WHHULQJ$VVLVWLVRQO\DQDLG7KHGULYHULVUHVSRQVLEOHIRUWKHGLVWDQFHWRWKHYHKLFOHLQIURQWIRUYHKLFOHVSHHGIRUEUDNLQJLQJRRGWLPHDQGIRUVWD\LQJLQODQH%HIRUHFKDQJLQJODQHVWKHGULYHUPXVWPDNHVXUHWKDWWKHQHLJKERXULQJODQHLVIUHHJODQFHRYHUWKHVKRXOGHU6\VWHPOLPLWDWLRQV$FWLYH6WHHULQJ$VVLVWKDVDOLPLWHGVWHHULQJWRUƃTXHIRUODWHUDOJXLGDQFH,QVRPHFDVHVWKHVWHHULQJLQWHUYHQWLRQLVQRWVXIILFLHQWWRNHHSWKHYHKLFOHLQWKHODQHRUWRGULYHSDVWH[LWV$FWLYH6WHHULQJ$VVLVWFDQQRWSURYLGHWKHGULYHUZLWKVWHHULQJDVVLVWDQFHDWURXQGDERXWV7MXQFWLRQVMXQFWLRQVWROOVWDWLRQVRUWXUQVIRUH[DPSOH7KHV\VWHPPD\EHLPSDLUHGRUPD\QRWIXQFWLRQLQWKHIROORZLQJLQVWDQFHV=,QVQRZUDLQIRJKHDY\VSUD\LIWKHUHLVJODUHGLUHFWVXQOLJKWJUHDWO\YDU\LQJOLJKWFRQGLWLRQVUHIOHFWLRQVRUVWURQJVKDGRZVRQWKHFDUULDJHZD\=,QVXIILFLHQWURDGLOOXPLQDWLRQ'ULYLQJDQGSDUNLQJ $

$=7KHZLQGVFUHHQLQWKHDUHDRIWKHFDPHUDLVGLUW\PLVWHGXSGDPDJHGRUFRYHUHG=$EVHQFHRIODQHPDUNLQJVRUVHYHUDOXQFOHDUODQHPDUNLQJVRULIWKHPDUNLQJVFKDQJHUDSƃLGO\=7KHGLVWDQFHWRWKHYHKLFOHLQIURQWLVWRRVPDOODQGWKHODQHPDUNLQJVWKXVFDQQRWEHGHWHFWHG=7KHFDUULDJHZD\LVQDUURZDQGZLQGLQJ=2EVWDFOHVRQWKHODQHRUSURMHFWLQJRXWLQWRWKHODQH7KHV\VWHPGRHVQRWSURYLGHDVVLVWDQFHLQWKHIROORZLQJFRQGLWLRQV=2QWLJKWEHQGVURXQGDERXWVDQGZKHQWXUQƃLQJ=:KHQWRZLQJDWUDLOHU=,I\RXDFWLYHO\FKDQJHODQHZLWKRXWVZLWFKLQJRQWKHWXUQVLJQDOLQGLFDWRU&:$51,1*5LVNRIDFFLGHQWLI$FWLYH6WHHULQJ$VVLVWXQH[SHFWHGO\VWRSVIXQFƃWLRQLQJ,IWKHV\VWHPOLPLWDWLRQVRI$FWLYH6WHHULQJ$VVLVWDUHUHDFKHGWKHUHLVQRJXDUDQWHHWKDWWKHV\VWHPZLOOUHPDLQDFWLYHRUZLOONHHSWKHYHKLFOHLQODQH#$OZD\VNHHS\RXUKDQGVRQWKHVWHHULQJZKHHODQGREVHUYHWKHWUDIILFFDUHIXOO\#$OZD\VVWHHUWKHYHKLFOHSD\LQJDWWHQƃWLRQWRWUDIILFFRQGLWLRQV&:$51,1*5LVNRIDFFLGHQWLI$FWLYH6WHHULQJ$VVLVWXQH[SHFWHGO\LQWHUYHQHV$PDOIXQFWLRQLQWKHGHWHFWLRQRIODQHPDUNƃLQJVDQGREMHFWVFDQRFFXU7KLVFRXOGFDXVHXQH[SHFWHGVWHHULQJLQWHUƃYHQWLRQ#6WHHUDFFRUGLQJWRWUDIILFFRQGLWLRQV$FWLYDWLQJGHDFWLYDWLQJ$FWLYH6WHHULQJ$VVLVW5HTXLUHPHQWV=(63PXVWEHDFWLYDWHGEXWQRWLQWHUYHQLQJ=$FWLYH'LVWDQFH$VVLVW',67521,&LVDFWLYDƃWHG0XOWLPHGLDV\VWHP,.6HWWLQJV.6FKQHOO]XJULII4XLFNDFFHVV#6HOHFWO$FWLYH6WHHULQJ$VVLVW)XQFWLRQRI$FWLYH/DQH&KDQJH$VVLVW%7KHIROORZLQJIXQFWLRQLVFRXQWU\GHSHQGHQWDQGRQO\DYDLODEOHLQFRQMXQFWLRQZLWKWKH'ULYLQJ$VVLVWDQFH3DFNDJH$FWLYH/DQH&KDQJH$VVLVWVXSSRUWVWKHGULYHUZKHQFKDQJLQJODQHVE\DSSO\LQJVWHHULQJWRUƃTXH$VVLVWDQFHZKHQFKDQJLQJODQHVLVSURYLGHGLIDOOWKHIROORZLQJFRQGLWLRQVDUHPHW=<RXDUHGULYLQJRQDPRWRUZD\RUURDGZLWKPXOWLSOHODQHVLQWKHGLUHFWLRQRIWUDYHO 'ULYLQJDQGSDUNLQJ$

$=7KHQHLJKERXULQJODQHLVVHSDUDWHGE\DEURƃNHQODQHPDUNLQJ=1RYHKLFOHLVGHWHFWHGLQWKHDGMDFHQWODQH=7KHGULYHQVSHHGLVEHWZHHQNPKDQGNPK=$FWLYH/DQH&KDQJH$VVLVWLVDFWLYDWHGE\WKHGULYHUZLWKWKHWXUQVLJQDOLQGLFDWRU=$FWLYH/DQH&KDQJH$VVLVWLVVZLWFKHGRQLQWKHPXOWLPHGLDV\VWHP=$FWLYH6WHHULQJ$VVLVWLVVZLWFKHGRQDQGDFWLYH,IQRYHKLFOHLVGHWHFWHGLQWKHDGMDFHQWODQHDQGDODQHFKDQJHLVSHUPLWWHGWKHVWHHULQJZKHHOV\PERODQGWKHDUURZDUHVKRZQLQJUHHQ7KH/DQHFKDQJHWRWKHOHIWPHVVDJHDSSHDUVIRUH[DPSOH,I$FWLYH/DQH&KDQJH$VVLVWKDVEHHQDFWLYDWHGZLWKWKHWXUQVLJQDOLQGLFDWRUEXWDODQHFKDQJHLVQRWLPPHGLDWHO\SRVVLEOHWKHVWHHULQJZKHHOV\PEROUHPDLQVJUHHQDQGWKHDUURZDSSHDUVJUH\:KHQWKHODQHFKDQJHVXSSRUWVWDUWVWKHWXUQVLJQDOLQGLFDWRULVDXWRƃPDWLFDOO\DFWLYDWHG,IDODQHFKDQJHLVQRWSRVVLƃEOHWKHDUURZIDGHVRXWDIWHUDVKRUWSHULRGDQGDQHZODQHFKDQJHPXVWEHLQLWLDWHG$QLPPHGLƃDWHODQHFKDQJHLVRQO\SRVVLEOHRQPRWRUZD\VHFWLRQVZLWKRXWVSHHGOLPLWV,IWKHV\VWHPLVLPSDLUHG$FWLYH/DQH&KDQJH$VVLVWPD\EHFDQFHOOHG,ILWLVFDQFHOOHGWKH/DQHFKDQJHFDQFHOOHGPHVVDJHDSSHDUVLQWKHPXOWLIXQFWLRQGLVSOD\DQGDZDUQLQJWRQHVRXQGV&:$51,1*5LVNRIDFFLGHQWIURPFKDQJƃLQJODQHWRDQRFFXSLHGDGMDFHQWODQH/DQH&KDQJH$VVLVWFDQQRWDOZD\VGHWHFWFOHDUO\LIWKHDGMDFHQWODQHLVIUHH7KHODQHFKDQJHPLJKWEHLQLWLDWHGDOWKRXJKWKHDGMDFHQWODQHLVQRWIUHH#%HIRUHFKDQJLQJODQHVPDNHVXUHWKDWWKHQHLJKERXULQJODQHLVIUHHDQGWKHUHLVQRGDQJHUWRRWKHUURDGXVHUV#0RQLWRUWKHODQHFKDQJH&:$51,1*5LVNRIDFFLGHQWLI/DQH&KDQJH$VVLVWXQH[SHFWHGO\VWRSVIXQFƃWLRQLQJ,IWKHV\VWHPOLPLWDWLRQVIRU/DQH&KDQJH$VVLVWKDYHEHHQUHDFKHGWKHUHLVQRJXDUƃDQWHHWKDWWKHV\VWHPZLOOUHPDLQDFWLYH/DQH&KDQJH$VVLVWFDQQRWWKHQDVVLVW\RXE\DSSO\LQJVWHHULQJWRUTXHV#$OZD\VPRQLWRUWKHODQHFKDQJHDQGNHHS\RXUKDQGVRQWKHVWHHULQJZKHHO2EVHUYHWKHWUDIILFFRQGLWLRQVDQGVWHHUDQGRUEUDNHLIQHFHVVDU\6\VWHPOLPLWDWLRQV7KHV\VWHPOLPLWDWLRQVRI$FWLYH6WHHULQJ$VVLVWDSSO\WR$FWLYH/DQH&KDQJH$VVLVWĺSDJH'ULYLQJDQGSDUNLQJ $

$$FWLYDWLQJGHDFWLYDWLQJ$FWLYH/DQH&KDQJH$VVLVW0XOWLPHGLDV\VWHP,.6HWWLQJV.$VVLVWDQFH.$FWODQHFKDQDVVLVW#$FWLYDWHRUGHDFWLYDWHWKHIXQFWLRQ)XQFWLRQRI$FWLYH(PHUJHQF\6WRS$VVLVW,IWKHGULYHUFRQWLQXHVWRLJQRUHWKHUHSHDWHGDFRXVWLFZDUQLQJWRSXWWKHLUKDQGVRQWKHVWHHUƃLQJZKHHO$FWLYH'LVWDQFH$VVLVW',67521,&UHGXFHVWKHVSHHG,IWKHGULYHUVWLOOGRHVQRWUHVSRQGWKH%HJLQQLQJHPHUJHQF\VWRSPHVƃVDJHLVVKRZQLQWKHPXOWLIXQFWLRQGLVSOD\7KHYHKLFOHLVGHFHOHUDWHGLQVWDJHVWRDVWDQGVWLOO$WVSHHGVEHORZNPKWKHKD]DUGZDUQLQJOLJKWVVZLWFKRQDXWRPDWLFDOO\:KHQWKHYHKLFOHLVVWDWLRQDU\WKHIROORZLQJDFWLRQVDUHFDUULHGRXW=7KHYHKLFOHLVVHFXUHGZLWKWKHHOHFWULFSDUNƃLQJEUDNH=$FWLYH'LVWDQFH$VVLVW',67521,&LVHQGHG=7KHYHKLFOHLVXQORFNHG=,ISRVVLEOHDQHPHUJHQF\FDOOLVSODFHGWRWKH0HUFHGHV%HQ]HPHUJHQF\FDOOFHQWUH7KHGULYHUFDQFDQFHOWKHGHFHOHUDWLRQDWDQ\WLPHE\SHUIRUPLQJRQHRIWKHIROORZLQJDFWLRQV=6WHHULQJ='HSUHVVLQJWKHEUDNHRUDFFHOHUDWRUSHGDO=3UHVVLQJDVWHHULQJZKHHOEXWWRQRURSHUDWƃLQJ7RXFK&RQWURO=$FWLYDWLQJRUGHDFWLYDWLQJ$FWLYH'LVWDQFH$VVLVW',67521,&2YHUYLHZRI$FWLYH'LVWDQFH$VVLVW',67521,&GLVSOD\VLQWKHLQVWUXPHQWFOXVƃWHU7KHDVVLVWDQFHJUDSKLFDQGWKHVWDWXVGLVSOD\VKRZWKHVWDWXVRIWKHIROORZLQJIXQFWLRQVLQWKHLQVWUXPHQWFOXVWHU=$FWLYH'LVWDQFH$VVLVW',67521,&=5RXWHEDVHGVSHHGDGMXVWPHQW=$FWLYH6WHHULQJ$VVLVW$VVLVWDQWGLVSOD\5RXWHEDVHGVSHHGDGMXVWPHQWW\SHRIURXWHHYHQW9HKLFOHDKHDG'LVWDQFHLQGLFDWRU6HWVSHFLILHGGLVWDQFH 'ULYLQJDQGSDUNLQJ$

$$FWLYH'LVWDQFH$VVLVW',67521,&VWDWXVGLVƃSOD\DQGURXWHEDVHGVSHHGDGMXVWPHQW$FWLYH'LVWDQFH$VVLVW',67521,&VHOHFWHGVHWVSHFLILHGGLVWDQFH$FWLYH'LVWDQFH$VVLVW',67521,&GHDFWLYDƃWHGVSHHGVWRUHG$FWLYH'LVWDQFH$VVLVW',67521,&DFWLYHVSHHGVWRUHGQRYHKLFOHGHWHFWHGJUH\YHKLƃFOHV\PERO$FWLYH'LVWDQFH$VVLVW',67521,&DFWLYHVSHHGVWRUHGYHKLFOHGHWHFWHGJUHHQYHKLƃFOHV\PERO$FWLYH'LVWDQFH$VVLVW',67521,&DQGURXWHEDVHGVSHHGDGMXVWPHQWDFWLYHVSHHGVWRUHG%2QPRWRUZD\VRUKLJKVSHHGPDMRUURDGVWKHJUHHQ¿YHKLFOHV\PEROLVGLVSOD\HGF\FOLFDOO\ZKHQWKHYHKLFOHLVUHDG\WRSXOODZD\6SHHGRPHWHU7KHVWRUHGVSHHGLVKLJKOLJKWHGRQWKHVSHHGRPƃHWHU,IWKHVSHHGRIWKHYHKLFOHDKHDGRUWKHVSHHGDGMXVWPHQWLVOHVVWKDQWKHVWRUHGVSHHGGXHWRWKHURXWHHYHQWDKHDGWKHVHJPHQWVLQWKHVSHHGRPHWHUOLJKWXS$FWLYDWLRQRUGHDFWLYDƃWLRQRI$FWLYH'LVWDQFH$VVLVW',67521,&DVZHOODVDOWHUDWLRQVLQWKHVDYHGVSHHGDQGWKHGLVWDQFHWREHPDLQWDLQHGDUHGLVSOD\HGLQWKHLQGLYLGXDOFRQWUROIHHGEDFNRIWKHPXOWLIXQFWLRQGLVSOD\$FWLYH6WHHULQJ$VVLVWVWDWXVGLVSOD\*UH\VWHHULQJZKHHO$FWLYH6WHHULQJ$VVLVWVZLWFKHGRQDQGSDVVLYH*UHHQVWHHULQJZKHHO$FWLYH6WHHULQJ$VVLVWVZLWFKHGRQDQGDFWLYH<HOORZVWHHULQJZKHHOIODVKLQJWUDQVLWLRQIURPDFWLYHWRSDVVLYHVWDWXVV\VWHPOLPLWDƃWLRQGHWHFWHGRUSURPSWWRWKHGULYHUWRDFWLYHO\FRQILUP'XULQJWKHWUDQVLWLRQIURPWKHDFWLYHWRSDVVLYHVWDWXVV\PEROLVVKRZQDVHQODUJHGDQGIODVKHV\HOORZ2QFHWKHV\VWHPLVSDVVLYHV\PƃEROLVVKRZQDVJUH\LQWKHPXOWLIXQFWLRQGLVƃSOD\'ULYLQJDQGSDUNLQJ $

$,QIRUPDWLRQRQ+LOO6WDUW$VVLVW+LOO6WDUW$VVLVWKROGVWKHYHKLFOHIRUDVKRUWWLPHZKHQSXOOLQJDZD\RQDKLOOXQGHUWKHIROƃORZLQJFRQGLWLRQV=7KHWUDQVPLVVLRQLVLQSRVLWLRQ[RU^=7KHHOHFWULFSDUNLQJEUDNHLVUHOHDVHG7KLVJLYHV\RXHQRXJKWLPHWRPRYH\RXUIRRWIURPWKHEUDNHSHGDOWRWKHDFFHOHUDWRUSHGDODQGGHSUHVVLWEHIRUHWKHYHKLFOHEHJLQVWRUROO&:$51,1*5LVNRIDFFLGHQWDQGLQMXU\FDXVHGE\WKHYHKLFOHUROOLQJDZD\$IWHUDVKRUWWLPH+LOO6WDUW$VVLVWQRORQJHUKROGVWKHYHKLFOHDQGLWFDQUROODZD\#7KHUHIRUHVZLIWO\PRYH\RXUIRRWIURPWKHEUDNHSHGDOWRWKHDFFHOHUDWRUSHGDO1HYHUDWWHPSWWROHDYHWKHYHKLƃFOHLILWLVEHLQJKHOGE\+LOO6WDUW$VVLVW+2/'IXQFWLRQ+2/'IXQFWLRQ7KH+2/'IXQFWLRQKROGVWKHYHKLFOHDWDVWDQGƃVWLOOZLWKRXWUHTXLULQJ\RXWRGHSUHVVWKHEUDNHSHGDOHJZKHQSXOOLQJDZD\XSKLOO6\VWHPOLPLWDWLRQV=7KHLQFOLQHPXVWQRWEHJUHDWHUWKDQ$FWLYDWLQJGHDFWLYDWLQJWKH+2/'IXQFWLRQ&:$51,1*5LVNRIDQDFFLGHQWGXHWRWKH+2/'IXQFWLRQEHLQJDFWLYDWHGZKHQ\RXOHDYHWKHYHKLFOH,I\RXOHDYHWKHYHKLFOHZKLOHRQO\WKH+2/'IXQFWLRQLVEUDNLQJWKHYHKLFOHWKHYHKLFOHFDQUROODZD\LQWKHIROORZLQJVLWXDWLRQV=,IWKHUHLVDPDOIXQFWLRQLQWKHV\VWHPRULQWKHSRZHUVXSSO\=,IWKH+2/'IXQFWLRQLVGHDFWLYDWHGE\GHSUHVVLQJWKHDFFHOHUDWRUSHGDORUWKHEUDNHSHGDOHJE\DYHKLFOHRFFXSDQW=,IWKHHOHFWULFVLQWKHHQJLQHFRPSDUWƃPHQWWKHEDWWHU\RUWKHIXVHVDUHWDPƃSHUHGZLWKRULIWKHEDWWHU\LVGLVFRQQHFƃWHG#$OZD\VGHDFWLYDWHWKH+2/'IXQFWLRQDQGVHFXUHWKHYHKLFOHDJDLQVWUROOLQJDZD\EHIRUHOHDYLQJWKHYHKLFOH*127('DPDJHIURPDXWRPDWLFEUDNLQJ,IRQHRIWKHIROORZLQJIXQFWLRQVLVVZLWFKHGRQWKHYHKLFOHEUDNHVDXWRPDWLFDOO\LQFHUƃWDLQVLWXDWLRQV=$FWLYH%UDNH$VVLVW=$FWLYH'LVWDQFH$VVLVW',67521,&=+2/'IXQFWLRQ=$FWLYH3DUNLQJ$VVLVW7RDYRLGGDPDJHWRWKHYHKLFOHGHDFWLYDWHWKHVHV\VWHPVLQWKHIROORZLQJRUVLPLODUVLWƃXDWLRQV#'XULQJWRZLQJ#,QDFDUZDVK 'ULYLQJDQGSDUNLQJ$

$5HTXLUHPHQWV=7KHYHKLFOHLVVWDWLRQDU\=7KHGULYHUVGRRULVFORVHGRUWKHVHDWEHOWRQWKHGULYHUVVLGHLVIDVWHQHG=7KHHQJLQHLVUXQQLQJRUKDVEHHQDXWRPDWLƃFDOO\VZLWFKHGRIIE\WKH(&2VWDUWVWRSIXQFWLRQ=7KHHOHFWULFSDUNLQJEUDNHLVUHOHDVHG=$FWLYH'LVWDQFH$VVLVW',67521,&LVGHDFWLƃYDWHG=7KHWUDQVPLVVLRQLVLQSRVLWLRQ[^RU\$FWLYDWLQJWKH+2/'IXQFWLRQ#'HSUHVVWKHEUDNHSHGDODQGDIWHUDVKRUWWLPHTXLFNO\GHSUHVVIXUWKHUXQWLOWKHÙGLVSOD\DSSHDUVLQWKHPXOWLIXQFWLRQGLVSOD\#5HOHDVHWKHEUDNHSHGDO'HDFWLYDWLQJWKH+2/'IXQFWLRQ#'HSUHVVWKHDFFHOHUDWRUSHGDOWRSXOODZD\RU#'HSUHVVWKHEUDNHSHGDOXQWLOWKHÙGLVƃSOD\GLVDSSHDUVIURPWKHPXOWLIXQFWLRQGLVƃSOD\7KH+2/'IXQFWLRQLVGHDFWLYDWHGLQWKHIROORZƃLQJVLWXDWLRQV=$FWLYH'LVWDQFH$VVLVW',67521,&LVDFWLYDƃWHG=7KHWUDQVPLVVLRQLVVZLWFKHGWRSRVLWLRQ]=7KHYHKLFOHLVVHFXUHGZLWKWKHHOHFWULFSDUNƃLQJEUDNH,QWKHIROORZLQJVLWXDWLRQVWKHYHKLFOHLVKHOGE\WKHWUDQVPLVVLRQSRVLWLRQ]RUE\WKHHOHFWULFSDUNLQJEUDNH=7KHVHDWEHOWLVXQIDVWHQHGDQGWKHGULYHUVGRRULVRSHQHG=7KHHQJLQHLVVZLWFKHGRII=7KHUHLVDPDOIXQFWLRQLQWKHV\VWHPRUWKHSRZHUVXSSO\LVLQVXIILFLHQW'<1$0,&%2'<&21752/IXQFWLRQ'<1$0,&%2'<&21752/FRQWLQXRXVO\DGMXVWVWKHFKDUDFWHULVWLFVRIWKHVXVSHQVLRQGDPSHUVWRWKHFXUUHQWRSHUDWLQJDQGGULYLQJFRQGLWLRQV7KHGDPSLQJLVWXQHGLQGLYLGXDOO\IRUHDFKZKHHODQGLVDIIHFWHGE\WKHIROORZLQJIDFWRUV=7KHURDGVXUIDFHFRQGLWLRQV=9HKLFOHORDG=7KHGULYHSURJUDPVHOHFWHG=7KHGULYLQJVW\OH7KHGULYHSURJUDPFDQEHDGMXVWHGXVLQJWKH'<1$0,&6(/(&7VZLWFK3DUNLQJ$VVLVW3$5.7521,&)XQFWLRQRI3DUNLQJ$VVLVW3$5.7521,&'ULYLQJDQGSDUNLQJ $

$3DUNLQJ$VVLVW3$5.7521,&LVDQHOHFWURQLFSDUNLQJDVVLVWDQFHV\VWHPZLWKXOWUDVRXQG,WPRQLWRUVWKHDUHDDURXQG\RXUYHKLFOHXVLQJVL[VHQVRUVLQWKHIURQWEXPSHUDQGVL[VHQVRUVLQWKHUHDUEXPSHU3DUNLQJ$VVLVW3$5.7521,&VKRZV\RXWKHGLVWDQFHEHWZHHQ\RXUYHKLFOHDQGDGHWHFWHGREVWDFOHYLVXDOO\DQGDXGLEO\3DUNLQJ$VVLVW3$5.7521,&LVRQO\DQDLG,WLVQRWDVXEVWLWXWHIRU\RXUDWWHQWLRQWRWKHVXUƃURXQGLQJV7KHUHVSRQVLELOLW\IRUVDIHPDQRHXƃYULQJDQGSDUNLQJUHPDLQVZLWK\RX0DNHVXUHWKDWWKHUHDUHQRSHUVRQVDQLPDOVRUREMHFWVLQWKHPDQRHXYULQJDUHDZKLOHPDQRHXYULQJDQGSDUNLQJLQH[LWLQJSDUNLQJVSDFHV,QWKHVWDQGDUGVHWWLQJDQLQWHUPLWWHQWZDUQLQJWRQHVRXQGVIURPDGLVWDQFHRIDSSUR[LPDWHO\PWRDQREVWDFOHLQIURQWDQGDSSUR[LPDWHO\PWRDQREVWDFOHEHKLQG$FRQWLQXRXVWRQHVRXQGVIURPDGLVWDQFHRIDSSUR[LPDWHO\P8VLQJWKH(DUO\ZDUQLQJVHWWLQJWKHZDUQLQJWRQHVIRUIURQWDQGVLGHLPSDFWSURWHFWLRQFDQDOVREHVHWWRVRXQGDWDJUHDWHUGLVWDQFHRIDSSUR[LPDWHO\PĺSDJH%7KH(DUO\ZDUQLQJVHWWLQJLVDOZD\VDFWLYHLQWKHUHDURIWKHYHKLFOH3DUNLQJ$VVLVW3$5.7521,&GLVSOD\LQWKHPXOWLPHGLDV\VWHP9HKLFOHVZLWK$FWLYH3DUNLQJ$VVLVWZLWKRXWD&DPHUD9HKLFOHVZLWK$FWLYH3DUNLQJ$VVLVWDQGD&DPHUD,I$FWLYH3DUNLQJ$VVLVWLVQRWDFWLYDWHGDQGDQREVWDFOHLVGHWHFWHGLQWKHSDWKRIWKHYHKLFOHDSRSXSZLQGRZIRU3DUNLQJ$VVLVW3$5.7521,&DSSHDUVLQWKHPXOWLPHGLDV\VWHPDWVSHHGVXSWRDSSUR[LPDWHO\NPK6\VWHPOLPLWDWLRQV3DUNLQJ$VVLVW3$5.7521,&GRHVQRWQHFHVVDƃULO\WDNHLQWRDFFRXQWWKHIROORZLQJREVWDFOHV=2EVWDFOHVEHORZWKHGHWHFWLRQUDQJHHJSHUVRQVDQLPDOVRUREMHFWV 'ULYLQJDQGSDUNLQJ$

$=2EVWDFOHVDERYHWKHGHWHFWLRQUDQJHHJRYHUKDQJLQJORDGVRYHUKDQJVRUORDGLQJUDPSVRIORUULHV7KHVHQVRUVPXVWEHIUHHRIGLUWLFHDQGVOXVK2WKHUZLVHWKH\PD\QRWIXQFWLRQFRUUHFWO\&OHDQWKHVHQVRUVUHJXODUO\WDNLQJFDUHQRWWRVFUDWFKRUGDPDJHWKHP9HKLFOHVZLWKWUDLOHUKLWFK3DUNLQJ$VVLVW3$5.7521,&LVGHDFWLYDWHGIRUWKHUHDU]RQHZKHQ\RXHVWDEOLVKDQHOHFWULFDOFRQQHFWLRQEHWZHHQ\RXUYHKLFOHDQGDWUDLOHU)XQFWLRQRIWKHSDVVLYHVLGHLPSDFWSURWHFƃWLRQ3DVVLYHVLGHLPSDFWSURWHFWLRQLVDQDGGLWLRQDO3DUNLQJ$VVLVW3$5.7521,&IXQFWLRQZKLFKZDUQVWKHGULYHUDERXWREVWDFOHVDWWKHVLGHRIWKHYHKLFOH$ZDUQLQJLVLVVXHGZKHQREVWDFOHVDUHGHWHFWHGEHWZHHQWKHIURQWDQGUHDUGHWHFƃWLRQUDQJH,QRUGHUIRUDQREMHFWWREHGHWHFWHGWKHVHQVRUVLQWKHIURQWDQGUHDUEXPSHUPXVWGHWHFWWKHREMHFWZKLOH\RXDUHGULYLQJSDVWLW'XULQJWKHSDUNLQJSURFHGXUHRUPDQRHXYULQJREMHFWVDUHGHWHFWHGDVWKHYHKLFOHGULYHVSDVW,I\RXVWHHULQWKHGLUHFWLRQRIDGHWHFWHGREVWDƃFOHDQGWKHUHLVDULVNRIDODWHUDOFROOLVLRQDZDUQLQJLVLVVXHG7KHODWHUDOVHJPHQWVOLJKWXSRUDQJHRUUHGGHSHQGLQJRQWKHGLVWDQFHWRWKHREVWDFOH6HJPHQWFRORXUGHSHQGLQJRQGLVWDQFH&RORXU /DWHUDOGLVWDQFHLQFP2UDQJH $SSUR[5HG $SSUR[,QRUGHUIRUODWHUDOIURQWRUUHDUVHJPHQWVWREHGLVSOD\HGWKHYHKLFOHPXVWILUVWWUDYHODGLVWDQFHRIDWOHDVWKDOIRIWKHYHKLFOHOHQJWK2QFHWKHYHKLFOHKDVWUDYHOOHGWKHOHQJWKRIWKHYHKLFOHDOORIWKHODWHUDOIURQWDQGUHDUVHJPHQWVFDQEHGLVƃSOD\HG9HKLFOHVZLWKRXW&DPHUD3DUNLQJ$VVLVW3$5.7521,&LVRQO\RSHUDƃWLRQDOLQWKHIURQWDQGUHDU3DUNLQJ$VVLVW3$5.7521,&LVRSHUDWLRQDODQGFDQDOVRZDUQWKHGULYHUDERXWREVWDFOHVDWWKHVLGHRIWKHYHKLFOH2EVWDFOHGHWHFWHGDWWKHIURQWULJKWRUDQJHDQGUHDUUHG'ULYLQJDQGSDUNLQJ $

$9HKLFOHVZLWK&DPHUD3DUNLQJ$VVLVW3$5.7521,&LVRQO\RSHUDƃWLRQDOLQWKHIURQWDQGUHDU3DUNLQJ$VVLVW3$5.7521,&LVRSHUDWLRQDODQGFDQDOVRZDUQWKHGULYHUDERXWREVWDFOHVDWWKHVLGHRIWKHYHKLFOH2EVWDFOHGHWHFWHGDWWKHIURQWULJKWRUDQJHDQGUHDUUHG6DYHGODWHUDOREVWDFOHVDUHGHOHWHGLQWKHIROORZƃLQJVLWXDWLRQVIRUH[DPSOH=<RXVZLWFKRIIWKHYHKLFOH=<RXRSHQWKHGRRUV$IWHUWKHHQJLQHLVUHVWDUWHGREVWDFOHVPXVWEHGHWHFWHGDJDLQEHIRUHDQHZZDUQLQJFDQEHLVVXHG6\VWHPOLPLWDWLRQV7KHV\VWHPOLPLWDWLRQVIRU3DUNLQJ$VVLVW3$5.7521,&DSSO\IRUSDVVLYHVLGHLPSDFWSURƃWHFWLRQ7KHIROORZLQJREMHFWVDUHQRWGHWHFWHGIRUH[DPƃSOH=3HGHVWULDQVZKRDSSURDFKWKHYHKLFOHIURPWKHVLGH=2EMHFWVSODFHGQH[WWRWKHYHKLFOH'HDFWLYDWLQJDFWLYDWLQJ3DUNLQJ$VVLVW3$5.7521,&*127(5LVNRIDQDFFLGHQWIURPREMHFWVDWFORVHUDQJH3DUNLQJ$VVLVW3$5.7521,&PD\QRWGHWHFWFHUWDLQREMHFWVDWFORVHUDQJH#:KHQSDUNLQJRUPDQRHXYULQJWKHYHKLƃFOHSD\SDUWLFXODUDWWHQWLRQWRDQ\REMHFWVZKLFKDUHDERYHRUEHORZWKHVHQVRUVHJIORZHUSRWVRUGUDZEDUV7KHYHKLFOHRURWKHUREMHFWVFRXOGRWKƃHUZLVHEHGDPDJHG,IWKHÁV\PEROLVVKRZQLQWKHPXOWLIXQFWLRQGLVSOD\3DUNLQJ$VVLVW3$5.7521,&LVQRWDFWLYH0XOWLPHGLDV\VWHP,6HWWLQJV.4XLFNDFFHVV.3$5.7521,&#$FWLYDWHRUGHDFWLYDWHWKHIXQFWLRQ%3DUNLQJ$VVLVW3$5.7521,&LVDXWRPDWLFDOO\DFWLYDWHGZKHQWKHYHKLFOHLVVWDUWHG$GMXVWLQJWKHZDUQLQJWRQHVRI3DUNLQJ$VVLVW3$5.7521,&0XOWLPHGLDV\VWHP,.6HWWLQJV.$VVLVWDQFH.&DPHUD3DUN$VVLVW.6HWZDUQLQJWRQH$GMXVWLQJWKHYROXPHRIWKHZDUQLQJWRQHV#6HOHFW:DUQLQJWRQHYROXPH#6HWDYDOXH 'ULYLQJDQGSDUNLQJ$

$$GMXVWLQJWKHSLWFKRIWKHZDUQLQJWRQHV#6HOHFW:DUQLQJWRQHSLWFK6HWDYDOXH6SHFLI\LQJWKHVWDUWLQJSRLQWIRUWKHZDUQLQJWRQHV<RXFDQVSHFLI\ZKHWKHUWKH3DUNLQJ$VVLVW3$5.7521,&ZDUQLQJWRQHVVKRXOGFRPPHQFHZKHQWKHYHKLFOHLVIXUWKHUDZD\IURPDQREVWDƃFOH#6HOHFW:DUQHDUO\DOOURXQG#$FWLYDWHRUGHDFWLYDWHWKHIXQFWLRQ$FWLYDWLQJGHDFWLYDWLQJDXGLRIDGHRXW<RXFDQVSHFLI\ZKHWKHUWKHYROXPHRIDPHGLDVRXUFHLQWKHPXOWLPHGLDV\VWHPLVWREHUHGXFHGZKHQ3DUNLQJ$VVLVW3$5.7521,&JLYHVDQDXGLEOHZDUQLQJ#6HOHFW$XGLRIDGHRXWGXULQJZDUQLQJWRQHV#$FWLYDWHRUGHDFWLYDWHWKHIXQFWLRQ5HYHUVLQJFDPHUD)XQFWLRQRIWKHUHYHUVLQJFDPHUD,I\RXKDYHDFWLYDWHGWKHIXQFWLRQLQWKHPXOWLPHƃGLDV\VWHPWKHLPDJHIURPUHYHUVLQJFDPHUDLVVKRZQLQWKHPXOWLPHGLDV\VWHPGLVSOD\ZKHQUHYHUVHJHDULVVHOHFWHG'\QDPLFJXLGHOLQHVVKRZWKHSDWKWKHYHKLFOHZLOOWDNHZLWKWKHVWHHULQJZKHHOLQLWVFXUUHQWSRVLWLRQ7KLVKHOSV\RXWRRULHQW\RXUVHOIDQGWRDYRLGREVWDFOHVZKHQUHYHUVLQJ7KHUHYHUVLQJFDPHUDLVRQO\DQDLG,WLVQRWDVXEVWLWXWHIRU\RXUDWWHQWLRQWRWKHVXUURXQGLQJV7KHUHVSRQVLELOLW\IRUVDIHPDQRHXYULQJDQGSDUNLQJUHPDLQVZLWK\RX0DNHVXUHWKDWWKHUHDUHQRSHUVRQVDQLPDOVRUREMHFWVLQWKHPDQRHXYULQJDUHDZKLOHPDQRHXYULQJDQGSDUNƃLQJLQSDUNLQJVSDFHV<RXFDQVHOHFWIURPWKHIROORZLQJYLHZV=1RUPDOYLHZ=:LGHDQJOHYLHZ=7UDLOHUYLHZ7KHDUHDEHKLQGWKHYHKLFOHLVGLVSOD\HGDVDPLUURULPDJHDVLQWKHLQVLGHUHDUYLHZPLUURU6\VWHPOLPLWDWLRQV7KHUHYHUVLQJFDPHUDZLOOQRWIXQFWLRQRUZLOORQO\SDUWLDOO\IXQFWLRQLQWKHIROORZLQJVLWXDWLRQV=7KHWDLOJDWHLVRSHQ=7KHUHLVKHDY\UDLQVQRZRUIRJ=7KHOLJKWFRQGLWLRQVDUHSRRUHJDWQLJKW'ULYLQJDQGSDUNLQJ $

$=7KHFDPHUDOHQVLVREVWUXFWHGGLUW\RUPLVƃWHGXS2EVHUYHWKHQRWHVRQFOHDQLQJWKHUHYHUVLQJFDPHUDĺSDJH=7KHFDPHUDRUUHDURI\RXUYHKLFOHLVGDPƃDJHG,QWKLVFDVHKDYHWKHFDPHUDDQGLWVSRVLWLRQDQGVHWWLQJFKHFNHGDWDTXDOLILHGVSHFLDOLVWZRUNVKRS7KHILHOGRIYLVLRQDQGRWKHUIXQFWLRQVRIWKHUHYHUVLQJFDPHUDPD\EHUHVWULFWHGGXHWRDGGLƃWLRQDODFFHVVRULHVRQWKHUHDURIWKHYHKLFOHHJOLFHQFHSODWHEUDFNHWRUELF\FOHUDFN%7KHGLVSOD\FRQWUDVWPD\EHLPSDLUHGGXHWRLQFLGHQWVXQOLJKWRURWKHUOLJKWVRXUFHV,QWKLVFDVHSD\SDUWLFXODUDWWHQWLRQ%+DYHWKHGLVSOD\UHSDLUHGRUUHSODFHGLIIRUH[DPSOHSL[HOHUURUVFRQVLGHUDEO\UHVWULFWLWVXVH9HKLFOHVZLWKRXW$FWLYH3DUNLQJ$VVLVW7KHIROORZLQJFDPHUDYLHZVDUHDYDLODEOHLQWKHPXOWLPHGLDV\VWHP1RUPDOYLHZ<HOORZJXLGHOLQHYHKLFOHZLGWKGULYHQVXUƃIDFHGHSHQGLQJRQWKHFXUUHQWVWHHULQJZKHHODQJOHG\QDPLF<HOORZJXLGHOLQHDWDGLVWDQFHRIDSSUR[ƃLPDWHO\PIURPWKHUHDUDUHD<HOORZODQHPDUNLQJWKHFRXUVHWKHW\UHVZLOOWDNHDWWKHFXUUHQWVWHHULQJZKHHODQJOHG\QDPLF%XPSHU5HGJXLGHOLQHDWDGLVWDQFHRIDSSUR[LPDWHO\PIURPWKHUHDUDUHD:LGHDQJOHYLHZ9LHZRIWUDLOHULIWUDLOHUKLWFKLVILWWHG<HOORZJXLGHOLQHORFDWLQJDLG 'ULYLQJDQGSDUNLQJ$

$5HGJXLGHOLQHDWDGLVWDQFHRIDSSUR[LPDWHO\PWRWKHEDOOKHDGRIWKHWUDLOHUKLWFK%DOOKHDGRIWKHWUDLOHUKLWFK9HKLFOHVZLWK$FWLYH3DUNLQJ$VVLVW7KHIROORZLQJFDPHUDYLHZVDUHDYDLODEOHLQWKHPXOWLPHGLDV\VWHP1RUPDOYLHZ<HOORZODQHPDUNLQJWKHFRXUVHWKHW\UHVZLOOWDNHDWWKHFXUUHQWVWHHULQJZKHHODQJOHG\QDPLF<HOORZJXLGHOLQHYHKLFOHZLGWKGULYHQVXUƃIDFHGHSHQGLQJRQWKHFXUUHQWVWHHULQJZKHHODQJOHG\QDPLF5HGJXLGHOLQHDWDGLVWDQFHRIDSSUR[LPDWHO\PIURPWKHUHDUDUHD<HOORZZDUQLQJGLVSOD\RI3DUNLQJ$VVLVW3$5.7521,&REVWDFOHVDUHDWDGLVWDQFHRIEHWZHHQDSSUR[LPDWHO\PDQGP5HGZDUQLQJGLVSOD\RI3DUNLQJ$VVLVW3$5.7521,&REVWDFOHVDUHYHU\FORVHDSSUR[LPDWHO\PRUOHVV2UDQJHZDUQLQJGLVSOD\RI3DUNLQJ$VVLVW3$5.7521,&REVWDFOHVDUHDPHGLXPGLVƃWDQFHDZD\EHWZHHQDSSUR[LPDWHO\PDQGP%,IWKHHQWLUHV\VWHPIDLOVWKHLQQHUVHJPHQWVRIWKHZDUQLQJGLVSOD\DUHVKRZQLQUHGDQGWKHÁV\PERODSSHDUVLQWKHPXOWLIXQFƃWLRQGLVSOD\,IWKHV\VWHPIDLOVLQWKHUHDU=7KHUHDUVHJPHQWVDUHVKRZQLQUHGZKHQUHYHUVLQJ=7KHUHDUVHJPHQWVDUHKLGGHQZKHQGULYƃLQJIRUZDUGV:KHQ$FWLYH3DUNLQJ$VVLVWLVDFWLYHWKHODQHVDUHGLVSOD\HGLQJUHHQ,I3DUNLQJ$VVLVW3$5.7521,&LVGHDFWLYDWHGWKHZDUQLQJGLVSOD\IDGHVRXW:LGHDQJOHYLHZ'ULYLQJDQGSDUNLQJ $

$9LHZRIWUDLOHULIWUDLOHUKLWFKLVILWWHG<HOORZJXLGHOLQHORFDWLQJDLG5HGJXLGHOLQHDWDGLVWDQFHRIDSSUR[LPDWHO\PWRWKHEDOOKHDGRIWKHWUDLOHUKLWFK%DOOKHDGRIWKHWUDLOHUKLWFK&DPHUD)XQFWLRQRIWKH&DPHUD7KH&DPHUDLVDV\VWHPWKDWFRQVLVWVRIIRXUFDPHUDV7KHFDPHUDVFRYHUWKHLPPHGLDWHYHKLFOHVXUURXQGLQJV7KHV\VWHPDVVLVWV\RXHJZKHQSDUNLQJRUDWH[LWVZLWKUHGXFHGYLVLELOƃLW\7KH&DPHUDLVRQO\DQDLG,WLVQRWDVXEƃVWLWXWHIRU\RXUDWWHQWLRQWRWKHVXUURXQGLQJV7KHUHVSRQVLELOLW\IRUVDIHPDQRHXYULQJDQGSDUNLQJUHPDLQVZLWK\RX0DNHVXUHWKDWWKHUHDUHQRSHUVRQVDQLPDOVRUREMHFWVLQWKHPDQRHXYULQJDUHDZKLOHPDQRHXYULQJDQGSDUNƃLQJLQSDUNLQJVSDFHV7KHV\VWHPHYDOXDWHVLPDJHVIURPWKHIROORZLQJFDPHUDV=5HYHUVLQJFDPHUD=)URQWFDPHUD=7ZRVLGHFDPHUDVLQWKHRXWVLGHPLUURUV9LHZVRIWKH&DPHUD<RXFDQVHOHFWIURPGLIIHUHQWYLHZV:LGHDQJOHYLHZIURQW7RSYLHZZLWKLPDJHIURPWKHIURQWFDPHUD7RSYLHZZLWKLPDJHVIURPWKHVLGHFDPHUDVLQWKHRXWVLGHPLUURUV:LGHDQJOHYLHZUHDU7RSYLHZZLWKLPDJHIURPWKHUHYHUVLQJFDPƃHUD7RSYLHZZLWKWUDLOHUYLHZLIWUDLOHUKLWFKLVILWWHG 'ULYLQJDQGSDUNLQJ$

$7RSYLHZ/DQHLQGLFDWLQJWKHURXWHWKHYHKLFOHZLOOWDNHZLWKWKHVWHHULQJZKHHOLQLWVFXUUHQWSRVLWLRQ<HOORZZDUQLQJGLVSOD\RI3DUNLQJ$VVLVW3$5.7521,&REVWDFOHVDWDGLVWDQFHRIDSSUR[LPDWHO\PRUOHVV<RXUYHKLFOHIURPDERYH,IWKHGLVWDQFHWRWKHREMHFWOHVVHQVWKHFRORXURIZDUQLQJGLVSOD\FKDQJHV)URPDGLVWDQFHRIDSSUR[LPDWHO\PWKHZDUQLQJGLVSOD\LVVKRZQLQRUDQJH)URPDGLVWDQFHRIDSSUR[ƃLPDWHO\PWKHZDUQLQJGLVSOD\LVVKRZQLQUHG:KHQ3DUNLQJ$VVLVW3$5.7521,&LVRSHUDWLRQDODQGQRREMHFWLVGHWHFWHGWKHVHJPHQWVRIWKHZDUQLQJGLVSOD\DUHVKRZQLQJUH\%,IWKHHQWLUHV\VWHPIDLOVWKHVHJPHQWVRIWKHZDUQLQJGLVSOD\DUHVKRZQLQUHGDQGWKHÁV\PERODSSHDUVLQWKHPXOWLIXQFWLRQGLVSOD\,IWKHV\VWHPIDLOVDWWKHUHDUWKHGLVSOD\RIWKHVHJPHQWVFKDQJHVDVIROORZV=7KHUHDUVHJPHQWVDUHVKRZQLQUHGZKHQUHYHUVLQJ=7KHUHDUVHJPHQWVDUHKLGGHQZKHQGULYƃLQJIRUZDUGV,I3DUNLQJ$VVLVW3$5.7521,&LVGHDFWLYDWHGWKHZDUQLQJGLVSOD\IDGHVRXW*XLGHOLQHV<HOORZODQHPDUNLQJWKHFRXUVHWKHW\UHVZLOOWDNHDWWKHFXUUHQWVWHHULQJZKHHODQJOHG\QDPLF<HOORZJXLGHOLQHYHKLFOHZLGWKGULYHQVXUƃIDFHGHSHQGLQJRQWKHFXUUHQWVWHHULQJZKHHODQJOHG\QDPLF5HGJXLGHOLQHDWDGLVWDQFHRIDSSUR[LPDWHO\PIURPWKHUHDUDUHD0DUNDWDGLVWDQFHRIDSSUR[P%:KHQ$FWLYH3DUNLQJ$VVLVWLVDFWLYHWKHODQHVDUHGLVSOD\HGLQJUHHQ'ULYLQJDQGSDUNLQJ $

$7KHJXLGHOLQHVLQWKHPXOWLPHGLDV\VWHPGLVƃSOD\VKRZWKHGLVWDQFHVWR\RXUYHKLFOH7KHGLVWDQFHVRQO\DSSO\WRURDGOHYHO,QWUDLOHUPRGHWKHJXLGHOLQHVDUHVKRZQDWWKHOHYHORIWKHWUDLOHUKLWFK7UDLOHUYLHZLIWUDLOHUKLWFKLVILWWHG7KHVLGHFDPHUDVVXSSRUWWKHPDQRHXYULQJSURƃFHGXUHZLWKDWUDLOHULQWKLVYLHZ,IWKLVYLHZLVVHOHFWHGV\PERODSSHDUV6LGHYLHZRIWKHPLUURUFDPHUDV7KHVLGHVRIWKHYHKLFOHFDQEHVHHQLQWKLVYLHZ*XLGHOLQHRIH[WHUQDOYHKLFOHGLPHQVLRQVZLWKRXWVLGHPLUURUVIROGHGRXW0DUNHURIWKHZKHHOFRQWDFWSRLQWV6\VWHPOLPLWDWLRQV7KH&DPHUDZLOOQRWIXQFWLRQRUZLOORQO\SDUWLDOO\IXQFWLRQLQWKHIROORZLQJVLWXDWLRQV=7KHGRRUVDUHRSHQ=7KHVLGHPLUURUVDUHIROGHGLQ=7KHWDLOJDWHLVRSHQ=7KHUHLVKHDY\UDLQVQRZRUIRJ=7KHOLJKWFRQGLWLRQVDUHSRRUHJDWQLJKW=7KHFDPHUDOHQVLVREVWUXFWHGGLUW\RUPLVƃWHGXS=&DPHUDVRUYHKLFOHFRPSRQHQWVLQZKLFKWKHFDPHUDVDUHILWWHGDUHGDPDJHG,QWKLVHYHQWKDYHWKHFDPHUDVWKHLUSRVLWLRQVDQGWKHLUVHWWLQJFKHFNHGDWDTXDOLILHGVSHFLDOLVWZRUNVKRS'RQRWXVHWKH&DPHUDXQGHUVXFKFLUFXPƃVWDQFHV<RXFRXOGRWKHUZLVHLQMXUHRWKHUVRUFROOLGHZLWKREMHFWVZKHQSDUNLQJWKHYHKLFOH2QYHKLFOHVZLWKKHLJKWDGMXVWDEOHVXVSHQVLRQRULIWKHYHKLFOHLVFDUU\LQJDKHDY\ORDGOHDYLQJWKHVWDQGDUGKHLJKWFDQUHVXOWLQLQDFFXUDFLHVLQWKHJXLGHOLQHVDQGLQWKHGLVSOD\RIWKHJHQHUDWHGLPDJHVGHSHQGLQJRQWHFKQLFDOFRQGLWLRQV7KHILHOGRIYLVLRQDQGRWKHUIXQFWLRQVRIWKHFDPHUDV\VWHPPD\EHUHVWULFWHGGXHWRDGGLƃWLRQDODWWDFKPHQWVRQWKHUHDURIWKHYHKLFOHHJOLFHQFHSODWHEUDFNHWELF\FOHUDFN6HHWKHQRWHVRQFOHDQLQJWKH&DPHUDĺSDJH 'ULYLQJDQGSDUNLQJ$

$6HOHFWLQJDYLHZIRUWKH&DPHUD5HTXLUHPHQWV=7KH$XWRUHYHUVLQJFDPHUDIXQFWLRQLVDFWLYDƃWHGLQWKHPXOWLPHGLDV\VWHPĺSDJH#(QJDJHUHYHUVHJHDU#,QWKHPXOWLPHGLDV\VWHPVHOHFWWKHGHVLUHGYLHZ6ZLWFKLQJUHYHUVLQJFDPHUDDXWRPDWLFPRGHRQRII7KHUHYHUVLQJFDPHUDLVRQO\DQDLG,WLVQRWDVXEVWLWXWHIRU\RXUDWWHQWLRQWRWKHVXUURXQGLQJV7KHUHVSRQVLELOLW\IRUVDIHPDQRHXYULQJDQGSDUNLQJUHPDLQVZLWK\RX0DNHVXUHWKDWQRSHUVRQVDQLPDOVRUREMHFWVHWFDUHLQWKHPDQRHXYULQJUDQJH3D\DWWHQWLRQWR\RXUVXUƃURXQGLQJVDQGEHUHDG\WREUDNHDWDOOWLPHV0XOWLPHGLDV\VWHP,.6HWWLQJV.)DKU]HXJ9HKLƃFOH .5HDUYLHZFDPHUD#6ZLWFK$XWRUHYHUVLQJFDPHUDRQRURII2SHQLQJWKHFDPHUDFRYHURIWKHUHYHUVLQJFDPHUD0XOWLPHGLDV\VWHP,.6HWWLQJV.)DKU]HXJ9HKLƃFOH .5HDUYLHZFDPHUD#6HOHFW2SHQFDPHUDFRYHU%7KHFDPHUDFRYHUFORVHVDXWRPDWLFDOO\DIWHUVRPHWLPHRUDIWHUDQLJQLWLRQF\FOH6HWWLQJWKHFDPHUDDVDIDYRXULWH<RXFDQFDOOXSWKHFDPHUDYLHZGLUHFWO\LQWKHPXOWLPHGLDV\VWHPE\VHWWLQJLWDVDIDYRXULWH#3UHVVWKHâEXWWRQRQWKHWRXFKSDG7KHPDLQIXQFWLRQVDUHGLVSOD\HG#1DYLJDWHGRZQZDUGVWZLFH7KH)DYRXULWHVPHQXDSSHDUV#6HOHFW1HZIDYRXULWH#6HOHFW9HKLFOH#6HOHFW&DPHUD$FWLYH3DUNLQJ$VVLVW)XQFWLRQRI$FWLYH3DUNLQJ$VVLVW$FWLYH3DUNLQJ$VVLVWLVDQHOHFWURQLFSDUNLQJDVVLVWDQFHV\VWHPZKLFKXVHVXOWUDVRXQGDQGLVDXWRPDWLFDOO\DFWLYDWHGGXULQJIRUZDUGWUDYHO7KHV\VWHPLVRSHUDWLRQDODWVSHHGVRIXSWRDSSUR[LPDWHO\NPK:KHQDOOWKHFRQGLWLRQVDUHIXOILOOHGWKHEV\PERODSSHDUVLQWKHGLVƃSOD\RIWKHPXOWLPHGLDV\VWHPDQGWKHV\VWHPDXWRPDWLFDOO\VHDUFKHVIRUDQGPHDVXUHVSDUNƃLQJVSDFHVRQERWKVLGHVRIWKHYHKLFOHSDUDOOHODQGSHUSHQGLFXODUWRWKHGLUHFWLRQRIWUDYHO,I$FWLYH3DUNLQJ$VVLVWLVDFWLYDWHGVXLWDEOHSDUNƃLQJVSDFHVDUHVKRZQLQWKHGLVSOD\RIWKHPXOWLƃPHGLDV\VWHP7KHÃV\PERODSSHDUVLQWKHGLVSOD\RIWKHPXOWLPHGLDV\VWHP7KHDUURZVVKRZRQZKLFKVLGHRIWKHFDUULDJHZD\IUHHSDUNƃLQJVSDFHVDUHORFDWHG7KHSDUNLQJVSDFHDQGLIQHFHVVDU\WKHSDUNLQJGLUHFWLRQFDQEHVHOHFWHGDVGHVLUHG$FWLYH3DUNLQJ$VVLVWFDOFXODWHVDVXLWDEOHYHKLFOHSDWKDQGDVVLVWV\RXLQSDUNLQJDQGH[LWLQJWKHSDUNƃLQJVSDFH'ULYLQJDQGSDUNLQJ $

$$FWLYH3DUNLQJ$VVLVWFKDQJHVJHDUDFFHOHUDWHVEUDNHVDQGVWHHUVWKHYHKLFOH$FWLYH3DUNLQJ$VVLVWLVRQO\DQDLG,WLVQRWDVXEVWLWXWHIRU\RXUDWWHQWLRQWRWKHVXUURXQGLQJV7KHUHVSRQVLELOLW\IRUVDIHPDQRHXYULQJDQGSDUNLQJUHPDLQVZLWK\RX0DNHVXUHWKDWQRSHUVRQVDQLPDOVRUREMHFWVHWFDUHLQWKHPDQRHXYULQJUDQJH$FWLYH3DUNLQJ$VVLVWLVFDQFHOOHGLIDPRQJRWKHUWKLQJVRQHRIWKHIROORZLQJDFWLRQVLVFDUƃULHGRXW=<RXGHDFWLYDWH3DUNLQJ$VVLVW3$5.7521,&=<RXGHDFWLYDWH$FWLYH3DUNLQJ$VVLVW=<RXEHJLQVWHHULQJ=<RXDSSO\WKHSDUNLQJEUDNH=<RXHQJDJHWUDQVPLVVLRQSRVLWLRQ]=(63LQWHUYHQHV=<RXRSHQWKHGRRUVRUWKHERRWOLGZKLOHGULYƃLQJ6\VWHPOLPLWDWLRQV2EMHFWVORFDWHGDERYHRUEHORZWKHGHWHFWLRQUDQJHRI$FWLYH3DUNLQJ$VVLVWDUHQRWGHWHFWHGZKHQWKHSDUNLQJVSDFHLVEHLQJPHDVXUHG7KHVHDUHDOVRQRWWDNHQLQWRDFFRXQWZKHQWKHSDUNLQJPDQRHXYUHLVFDOFXODWHGHJRYHUKDQJƃLQJORDGVRYHUKDQJVRUORDGLQJUDPSVRIORUULHVRUWKHERXQGDULHVRISDUNLQJVSDFHV,QVRPHFLUƃFXPVWDQFHV$FWLYH3DUNLQJ$VVLVWPD\WKHUHIRUHJXLGH\RXLQWRWKHSDUNLQJVSDFHSUHPDWXUHO\&:$51,1*5LVNRIDFFLGHQWGXHWRREMHFWVORFDWHGDERYHRUEHORZWKHGHWHFWLRQUDQJHRI$FWLYH3DUNLQJ$VVLVW,IWKHUHDUHREMHFWVDERYHRUEHORZWKHGHWHFWLRQUDQJHWKHIROORZLQJVLWXDWLRQVPD\DULVH=$FWLYH3DUNLQJ$VVLVWPD\VWHHUWRRHDUO\=9HKLFOHVZLWKDXWRPDWLFWUDQVPLVƃVLRQ7KHYHKLFOHPD\QRWVWRSLQIURQWRIWKHVHREMHFWV7KLVFRXOGFDXVHDFROOLVLRQ#,QWKHVHVLWXDWLRQVGRQRWXVH$FWLYH3DUNLQJ$VVLVW6QRZIDOORUKHDY\UDLQPD\OHDGWRDSDUNLQJVSDFHEHLQJPHDVXUHGLQDFFXUDWHO\3DUNLQJVSDFHVWKDWDUHSDUWLDOO\RFFXSLHGE\WUDLOHUGUDZEDUVPLJKWQRWEHLGHQWLILHGDVVXFKRUEHPHDVXUHGLQFRUUHFWO\2QO\XVH$FWLYH3DUNLQJ$VVLVWRQOHYHOKLJKJULSJURXQG'RQRWXVH$FWLYH3DUNLQJ$VVLVWLQWKHIROORZLQJVLWXDWLRQV=,QH[WUHPHZHDWKHUFRQGLWLRQVVXFKDVLFHSDFNHGVQRZRULQKHDY\UDLQ=,I\RXDUHWUDQVSRUWLQJDORDGWKDWSURWUXGHVEH\RQGWKHYHKLFOH=,IWKHSDUNLQJVSDFHLVRQDVWHHSGRZQKLOORUXSKLOOJUDGLHQW=,I\RXKDYHLQVWDOOHGVQRZFKDLQV$FWLYH3DUNLQJ$VVLVWPD\DOVRGLVSOD\SDUNLQJVSDFHVWKDWDUHQRWVXLWDEOHIRUSDUNLQJHJ=3DUNLQJVSDFHVZKHUHSDUNLQJLVSURKLELWHG=3DUNLQJVSDFHVRQXQVXLWDEOHVXUIDFHV$FWLYH3DUNLQJ$VVLVWZLOOQRWDVVLVW\RXZLWKSDUNLQJVSDFHVDWULJKWDQJOHVWRWKHGLUHFWLRQRIWUDYHOLQWKHIROORZLQJVLWXDWLRQV=,IWZRSDUNLQJVSDFHVDUHORFDWHGLPPHGLƃDWHO\QH[WWRHDFKRWKHU 'ULYLQJDQGSDUNLQJ$

$=,IWKHSDUNLQJVSDFHLVGLUHFWO\QH[WWRDORZREVWDFOHVXFKDVDORZNHUE$FWLYH3DUNLQJ$VVLVWZLOOQRWDVVLVW\RXZLWKSDUNLQJVSDFHVDWULJKWDQJOHVWRWKHGLUHFWLRQRIWUDYHOLQWKHIROORZLQJVLWXDWLRQV=,IWKHSDUNLQJVSDFHLVRQDNHUE=,IWKHSDUNLQJVSDFHLVERUGHUHGE\DQREVWDƃFOHHJDWUHHDSRVWRUDWUDLOHU3DUNLQJZLWK$FWLYH3DUNLQJ$VVLVW%'HSHQGLQJRQWKHYHKLFOHVHTXLSPHQWWKHEXWWRQPD\DOVREHORFDWHGDWDGLIIHUHQWSRVLWLRQLQWKHFHQWUHFRQVROH#3UHVVEXWWRQ7KH$FWLYH3DUNLQJ$VVLVWYLHZDSSHDUVRQWKHPXOWLPHGLDV\VWHPGLVSOD\$UHDGLVƃSOD\VGHWHFWHGSDUNLQJVSDFHVDQGYHKLƃFOHSDWK%9HKLFOHSDWKVKRZQRQWKHPXOWLPHGLDV\VWHPGLVSOD\PD\GLIIHUIURPWKHDFWXDOYHKLFOHSDWK#,I\RXKDYHGULYHQSDVWDVXLWDEOHSDUNLQJVSDFHEULQJWKHYHKLFOHWRDVWDQGVWLOO#6HOHFWGHVLUHGSDUNLQJVSDFH#:KHUHQHFHVVDU\VHOHFWWKHSDUNLQJGLUHFƃWLRQIRUZDUGVRUUHYHUVH9HKLFOHSDWKLVVKRZQGHSHQGLQJRQWKHVHOHFWHGSDUNLQJVSDFHDQGSDUNLQJGLUHFƃWLRQ#&RQILUPWKHVHOHFWHGSDUNLQJVSDFH'ULYLQJDQGSDUNLQJ $

$&:$51,1*5LVNRIDFFLGHQWGXHWRYHKLƃFOHVZLQJLQJRXWZKLOHSDUNLQJRUSXOOLQJRXWRIDSDUNLQJVSDFH:KLOHSDUNLQJRUH[LWLQJDSDUNLQJVSDFHWKHYHKLFOHVZLQJVRXWDQGFDQGULYHRQWRDUHDVRIWKHRQFRPLQJODQH7KLVFRXOGFDXVH\RXWRFROOLGHZLWKREMHFWVRURWKHUURDGXVHUV#3D\DWWHQWLRQWRREMHFWVDQGRWKHUURDGXVHUV#:KHUHQHFHVVDU\VWRSWKHYHKLFOHRUFDQFHOWKHSDUNLQJSURFHGXUHZLWK$FWLYH3DUNLQJ$VVLVW#,IIRUH[DPSOHWKHPHVVDJHDSSHDUVLQWKHPXOWLPHGLDV\VWHPGLVSOD\VHOHFWWKHFRUUHƃVSRQGLQJWUDQVPLVVLRQSRVLWLRQ7KHYHKLFOHGULYHVLQWRWKHVHOHFWHGSDUNLQJVSDFH#$IWHUFRPSOHWLRQRIWKHSDUNLQJSURFHGXUHVDIHJXDUGWKHYHKLFOHDJDLQVWUROOLQJDZD\:KHQUHTXLUHGE\OHJDOUHTXLUHPHQWVRUORFDOFRQGLWLRQVWXUQWKHZKHHOVWRZDUGVWKHNHUE%<RXFDQVWRSWKHYHKLFOHDQGFKDQJHWKHWUDQVPLVVLRQSRVLWLRQGXULQJWKHSDUNLQJSURƃFHGXUH7KHV\VWHPWKHQFDOFXODWHVDQHZYHKLFOHSDWK7KHSDUNLQJSURFHGXUHFDQWKHQEHFRQWLQXHG,IQRQHZYHKLFOHSDWKLVDYDLODEOHWKHWUDQVPLVVLRQSRVLWLRQZLOOEHFKDQJHGDJDLQ,IWKHYHKLFOHKDVQRW\HWUHDFKHGWKHSDUNLQJVSDFHWKHSDUNLQJSURƃFHGXUHZLOOEHFDQFHOOHGVKRXOGDJHDUEHFKDQJHG([LWLQJDSDUNLQJVSDFHZLWK$FWLYH3DUNLQJ$VVLVW5HTXLUHPHQWV<RXFDQRQO\H[LWDSDUNLQJVSDFHZLWK$FWLYH3DUNLQJ$VVLVWLI\RXKDYHSUHYLRXVO\SDUNHGWKHYHKLFOHZLWK$FWLYH3DUNLQJ$VVLVW3OHDVHQRWHWKDW\RXDUHUHVSRQVLEOHIRUWKHYHKLƃFOHDQGVXUURXQGLQJVGXULQJWKHHQWLUHSDUNLQJSURFHGXUH#6WDUWWKHYHKLFOH#3UHVVEXWWRQ7KH$FWLYH3DUNLQJ$VVLVWYLHZDSSHDUVRQWKHPXOWLPHGLDV\VWHPGLVSOD\ 'ULYLQJDQGSDUNLQJ$

$#,IWKHYHKLFOHKDVEHHQSDUNHGDWULJKWDQJOHVWRWKHGLUHFWLRQRIWUDYHOLQDUHDVHOHFWGLUHFWLRQRIWUDYHO%7KHYHKLFOHSDWKVKRZQRQWKHPXOWLPHGLDV\VWHPGLVSOD\PD\GLIIHUIURPWKHDFWXDOYHKLFOHSDWK#&RQILUPWRVWDUWWKHH[LWLQJSURFHVV&:$51,1*5LVNRIDFFLGHQWGXHWRYHKLƃFOHVZLQJLQJRXWZKLOHSDUNLQJRUSXOOLQJRXWRIDSDUNLQJVSDFH:KLOHSDUNLQJRUH[LWLQJDSDUNLQJVSDFHWKHYHKLFOHVZLQJVRXWDQGFDQGULYHRQWRDUHDVRIWKHRQFRPLQJODQH7KLVFRXOGFDXVH\RXWRFROOLGHZLWKREMHFWVRURWKHUURDGXVHUV#3D\DWWHQWLRQWRREMHFWVDQGRWKHUURDGXVHUV#:KHUHQHFHVVDU\VWRSWKHYHKLFOHRUFDQFHOWKHSDUNLQJSURFHGXUHZLWK$FWLYH3DUNLQJ$VVLVW#,IIRUH[DPSOHWKH3OHDVHHQJDJHIRUZDUGJHDUPHVVDJHDSSHDUVLQWKHPXOWLPHGLDV\VƃWHPGLVSOD\VHOHFWWKHFRUUHVSRQGLQJWUDQVƃPLVVLRQSRVLWLRQ7KHYHKLFOHPRYHVRXWRIWKHSDUNLQJVSDFH([DPSOHYHKLFOHVZLWK&DPHUD$IWHUWKHH[LWLQJSURFHGXUHKDVEHHQFRPSOHWHGWKH$FWLYH3DUNLQJ$VVLVWILQLVKHGWDNHFRQWURORIWKHYHKLFOHPHVVDJHDSSHDUVLQWKHGLVSOD\RIWKHPXOWLPHGLDV\VWHP$ZDUQLQJWRQHDQGGLVƃSOD\LQWKHPXOWLPHGLDV\VWHPSURPSW\RXWRWDNHFRQWURORIWKHYHKLFOH<RXKDYHWRDFFHOHUƃDWHEUDNHVWHHUDQGFKDQJHJHDU\RXUVHOIDJDLQ)XQFWLRQRI'ULYH$ZD\$VVLVW%'ULYH$ZD\$VVLVWLVRQO\DYDLODEOHIRUYHKLƃFOHVZLWKDXWRPDWLFWUDQVPLVVLRQ'ULYH$ZD\$VVLVWFDQUHGXFHWKHVHYHULW\RIDQLPSDFWZKHQSXOOLQJDZD\,IDQREVWDFOHLV'ULYLQJDQGSDUNLQJ $

$GHWHFWHGLQWKHGLUHFWLRQRIWUDYHOWKHYHKLFOHVVSHHGLVEULHIO\UHGXFHGWRDSSUR[NPK,IDFULWLFDOVLWXDWLRQLVGHWHFWHGWKHËV\PERODSSHDUVRQWKHFDPHUDLPDJHRIWKHPXOWLPHGLDV\VWHP&:$51,1*5LVNRIDFFLGHQWFDXVHGE\OLPLWHGGHWHFWLRQSHUIRUPDQFHRI'ULYH$ZD\$VVLVW'ULYH$ZD\$VVLVWFDQQRWDOZD\VFOHDUO\LGHQƃWLI\REMHFWVDQGWUDIILFVLWXDWLRQV,QVXFKFDVHV'ULYH$ZD\$VVLVWPLJKW=:DUQ\RXZLWKRXWUHDVRQDQGOLPLWWKHYHKLFOHVSHHG=1RWZDUQ\RXRUQRWOLPLWWKHYHKLFOHVSHHG#$OZD\VSD\FDUHIXODWWHQWLRQWRWKHWUDIƃILFVLWXDWLRQGRQRWUHO\RQ'ULYH$ZD\$VVLVWDORQH#%HSUHSDUHGWREUDNHRUVZHUYHDVQHFƃHVVDU\SURYLGHGWKHWUDIILFVLWXDWLRQSHUPLWVDQGWKDWLWLVVDIHWRWDNHHYDƃVLYHDFWLRQ'ULYH$ZD\$VVLVWLVRQO\DQDLG,WLVQRWDVXEƃVWLWXWHIRU\RXUDWWHQWLRQWRWKHVXUURXQGLQJV7KHUHVSRQVLELOLW\IRUVDIHPDQRHXYULQJDQGSDUNLQJUHPDLQVZLWK\RX0DNHVXUHWKDWQRSHUVRQVDQLPDOVRUREMHFWVHWFDUHLQWKHPDQRHXYULQJUDQJH$ULVNRIDFROOLVLRQPD\DULVHLQWKHIROORZLQJVLWƃXDWLRQVIRUH[DPSOH=,IWKHGULYHUPL[HVXSWKHDFFHOHUDWRUDQGEUDNHSHGDOV=,IWKHZURQJJHDULVVHOHFWHG7KH'ULYH$ZD\$VVLVWIXQFWLRQLVDFWLYHXQGHUWKHIROORZLQJFRQGLWLRQV=,I3DUNLQJ$VVLVW3$5.7521,&LVDFWLYDWHG=(YHU\WLPHWKHJHDULVFKDQJHGWR^RU[ZKHQWKHYHKLFOHLVDWDVWDQGVWLOO=,IWKHGHWHFWHGREVWDFOHLVOHVVWKDQDSSUR[PDZD\=,IWKHPDQRHXYULQJDVVLVWDQFHIXQFWLRQLVDFWLYDWHGLQWKHPXOWLPHGLDV\VWHP6\VWHPOLPLWDWLRQV'ULYH$ZD\$VVLVWLVQRWDYDLODEOHRQLQFOLQHVDQGZKHQGULYLQJZLWKDWUDLOHU)XQFWLRQRI&URVV7UDIILF$OHUW%$OVRUHDGWKHLQVWUXFWLRQVRQ%OLQG6SRW$VVLVWĺSDJH9HKLFOHVZLWK%OLQG6SRW$VVLVWGULYHUVFDQDOVREHZDUQHGRIDQ\FURVVLQJWUDIILFZKHQUHYHUVLQJRXWRIDSDUNLQJVSDFH,IDFULWLFDOVLWƃXDWLRQLVGHWHFWHGWKHV\PERODSSHDUVLQWKHPXOWLPHGLDV\VWHPGLVSOD\,IWKHGULYHUGRHVQRWUHVSRQGWRWKHZDUQLQJWKHYHKLFOHVEUDNHVFDQEHDSSOLHGDXWRPDWLFDOO\7RGRWKLVWKHIXQFWLRQ 'ULYLQJDQGSDUNLQJ$

$XVHVWKHUDGDUVHQVRUVLQWKHEXPSHU7KHDUHDDGMDFHQWWRWKHYHKLFOHLVFRQWLQXDOO\PRQLWRUHG9HKLFOHVZLWK%OLQG6SRW$VVLVWGULYHUVFDQDOVREHZDUQHGRIDQ\FURVVLQJWUDIILFZKHQUHYHUVLQJRXWRIDSDUNLQJVSDFH,IDFULWLFDOVLWƃXDWLRQLVGHWHFWHGDV\PERODSSHDUVLQWKHPXOƃWLPHGLDV\VWHPGLVSOD\,IWKHGULYHUGRHVQRWUHVSRQGWRWKHZDUQLQJWKHYHKLFOHVEUDNHVFDQEHDSSOLHGDXWRPDWLFDOO\7RGRWKLVWKHIXQFWLRQXVHVWKHUDGDUVHQVRUVLQWKHEXPSHU7KHDUHDDGMDFHQWWRWKHYHKLFOHLVFRQWLQXDOO\PRQLWRUHG,IWKHUDGDUVHQVRUVDUHREVWUXFWHGE\YHKLFOHVRURWKHUREMHFWVGHWHFWLRQLVQRWSRVVLEOH7KH&URVV7UDIILF$OHUWIXQFWLRQLVDFWLYHXQGHUWKHIROORZLQJFRQGLWLRQV=,I%OLQG6SRW$VVLVWLVDFWLYDWHG=,IWKHYHKLFOHLVUHYHUVLQJDWZDONLQJSDFH=,IWKHPDQRHXYULQJDVVLVWDQFHIXQFWLRQLVDFWLYDWHGLQWKHPXOWLPHGLDV\VWHP6\VWHPOLPLWDWLRQV7KH&URVV7UDIILF$OHUWIXQFWLRQLVQRWDYDLODEOHRQLQFOLQHVDQGZKHQGULYLQJZLWKDWUDLOHU'HDFWLYDWLQJDFWLYDWLQJPDQRHXYULQJDVVLVƃWDQFH0XOWLPHGLDV\VWHP,.6HWWLQJV.$VVLVWDQFH.&DPHUD3DUN$VVLVW#6ZLWFK0DQRHXYULQJDVVLVWRQRURII%0DQRHXYULQJDVVLVWDQFHPXVWEHDFWLYHIRUWKHIXQFWLRQRI'ULYH$ZD\$VVLVWĺSDJHDQG&URVV7UDIILF$OHUWĺSDJH$77(17,21$66,67)XQFWLRQRI$77(17,21$66,67$77(17,21$66,67DVVLVWV\RXRQORQJPRQRWRƃQRXVMRXUQH\VHJRQPRWRUZD\VDQGWUXQNURDGV,I$77(17,21$66,67GHWHFWVLQGLFDWRUVRIIDWLJXHRULQFUHDVLQJODSVHVLQFRQFHQWUDWLRQRQWKHSDUWRIWKHGULYHULWVXJJHVWVWDNLQJDEUHDN$77(17,21$66,67LVRQO\DQDLG,WFDQQRWDOZD\VGHWHFWIDWLJXHRUODSVHVLQFRQFHQWUDWLRQXQWLOWRRODWH7KHV\VWHPLVQRWDVXEVWLWXWHIRUDZHOOUHVWHGDQGDWWHQWLYHGULYHU2QORQJMRXUƃQH\VWDNHUHJXODUEUHDNVLQJRRGWLPHWKDWDOORZIRUDGHTXDWHUHFXSHUDWLRQ<RXFDQFKRRVHEHWZHHQWZRVHWWLQJV=6WDQGDUGQRUPDOV\VWHPVHQVLWLYLW\=6HQVLWLYHKLJKHUV\VWHPVHQVLWLYLW\7KHGULYHULVZDUQHGHDUOLHUDQGWKHDWWHQWLRQOHYHOGHWHFWHGE\$77(17,21$66,67LVDGDSƃWHGDFFRUGLQJO\,IGURZVLQHVVRULQFUHDVLQJODSVHVLQFRQFHQWUDƃWLRQDUHGHWHFWHGWKH$77(17,21$66,677DNHDEUHDNZDUQLQJDSSHDUVLQWKH,QVWUXPHQW'LVƃSOD\<RXFDQDFNQRZOHGJHWKHPHVVDJHDQGWDNHDEUHDNZKHUHQHFHVVDU\,I\RXGRQRWWDNHDEUHDNDQG$77(17,21$66,67FRQWLQXHVWRGHWHFWLQFUHDVLQJODSVHVLQFRQFHQWUDWLRQ\RXZLOOEHZDUQHGDJDLQDIWHUDPLQLPXPRIPLQXWHV'ULYLQJDQGSDUNLQJ $

$<RXFDQKDYHWKHIROORZLQJVWDWXVLQIRUPDWLRQIRU$77(17,21$66,67GLVSOD\HGLQWKHDVVLVWDQFHPHQXRIWKHRQERDUGFRPSXWHU=7KHOHQJWKRIWKHMRXUQH\VLQFHWKHODVWEUHDN=7KHDWWHQWLRQOHYHOGHWHUPLQHGE\$77(17,21$66,67WKHIXOOHUWKHFLUFOHWKHKLJKHUWKHDWWHQƃWLRQDOOHYHOGHWHUPLQHGDV\RXUDWWHQWLRQZDQHVWKHFLUFOHLQWKHFHQWUHRIWKHGLVSOD\EHFRPHVVPDOOHU,I$77(17,21$66,67LVXQDEOHWRFDOFXODWHWKHDWWHQWLRQOHYHODQGFDQQRWLVVXHDZDUQLQJWKH6\VWHPVXVSHQGHGPHVVDJHDSSHDUV,IDZDUQLQJLVJLYHQLQWKH,QVWUXPHQW'LVSOD\WKHPXOWLPHGLDV\VWHPRIIHUVWRVHDUFKIRUDUHVWDUHD<RXFDQVHOHFWDUHVWDUHDDQGVWDUWQDYLJDƃWLRQWRWKLVUHVWDUHD7KLVIXQFWLRQFDQEHDFWLYDƃWHGDQGGHDFWLYDWHGLQWKHPXOWLPHGLDV\VWHP,I$77(17,21$66,67LVGHDFWLYDWHGWKH×V\PERODSSHDUVLQWKHDVVLVWDQFHJUDSKLFLQWKH,QVWUXPHQW'LVSOD\ZKHQWKHHQJLQHLVUXQQLQJ$77(17,21$66,67LVDFWLYDWHGDXWRPDWLFDOO\ZKHQWKHHQJLQHLVUHVWDUWHG7KHODVWVHOHFWHGVHQVLWLYLW\OHYHOUHPDLQVVWRUHG6\VWHPOLPLWDWLRQV$77(17,21$66,67LVDFWLYHLQWKHNPKWRNPKVSHHGUDQJH7KHIXQFWLRQDOLW\RI$77(17,21$66,67LVUHVWULFWHGDQGZDUQLQJVPD\EHGHOD\HGRUQRWRFFXUDWDOOLQWKHIROORZLQJVLWXDWLRQV=,I\RXKDYHEHHQGULYLQJIRUOHVVWKDQPLQXWHV=,IWKHURDGFRQGLWLRQLVSRRUXQHYHQURDGVXUIDFHRUSRWKROHV=,IWKHUHLVDVWURQJVLGHZLQG=,I\RXDGRSWDVSRUW\GULYLQJVW\OHKLJKFRUƃQHULQJVSHHGVRUKLJKUDWHVRIDFFHOHUDWLRQ=,IWKH6WHHULQJ$VVLVWIXQFWLRQRI$FWLYH'LVƃWDQFH$VVLVW',67521,&LVDFWLYH=,IWKHWLPHKDVEHHQVHWLQFRUUHFWO\=,QDFWLYHGULYLQJVLWXDWLRQVLI\RXFKDQJHODQHVDQGYDU\\RXUVSHHGIUHTXHQWO\7KH$77(17,21$66,67WLUHGQHVVRUDOHUWQHVVDVVHVVPHQWLVGHOHWHGDQGUHVWDUWHGZKHQFRQƃWLQXLQJWKHMRXUQH\LQWKHIROORZLQJVLWXDWLRQV=,I\RXVZLWFKRIIWKHHQJLQH=,I\RXXQIDVWHQ\RXUVHDWEHOWDQGRSHQWKHGULYHUVGRRUHJFKDQJLQJGULYHUVRUWDNLQJDEUHDN 'ULYLQJDQGSDUNLQJ$

$6HWWLQJ$77(17,21$66,670XOWLPHGLDV\VWHP,.6HWWLQJV.$VVLVWDQFH.$WWHQWLRQ$VVLVW6HWWLQJRSWLRQV#6HOHFW6WDQGDUG6HQVLWLYHRU2II6XJJHVWLQJDUHVWDUHD#6HOHFW6XJJHVWUHVWDUHD#$FWLYDWHRUGHDFWLYDWHWKHIXQFWLRQ,I$77(17,21$66,67GHWHFWVIDWLJXHRULQFUHDVLQJODFNRIDWWHQWLRQLWVXJJHVWVDUHVWDUHDLQWKHYLFLQLW\#6HOHFWDVXJJHVWHGUHVWDUHD<RXDUHJXLGHGWRWKHVHOHFWHGUHVWDUHD6SHHG/LPLW$VVLVW)XQFWLRQRI6SHHG/LPLW$VVLVW%7KHDYDLODELOLW\RIWKHIROORZLQJIXQFWLRQLVFRXQWU\GHSHQGHQW6SHHG/LPLW$VVLVWGHWHFWVVSHHGOLPLWVZLWKPXOWLIXQFWLRQFDPHUDDQGGLVSOD\VWKHVHLQWKHLQVWUXPHQWFOXVWHURURSWLRQDOO\LQWKHKHDGXSGLVSOD\7KHFDPHUDDOVRGHWHFWVVSHHGOLPLWVZLWKDUHVWULFWLRQLQGLFDWHGE\DQDGGLWLRQDOVLJQHJLQZHWFRQGLWLRQV7KHV\VWHPGHWHFWVVWRSVLJQVWKHUHE\SUHYHQWLQJWKH(&2VWDUWVWRSIXQFWLRQIURPVZLWFKLQJRIIWKHHQJLQH:DUQLQJZKHQWKHPD[LPXPSHUPLVVLEOHVSHHGLVH[FHHGHG7KHV\VWHPFDQZDUQ\RXLI\RXXQLQWHQWLRQDOO\H[FHHGWKHPD[LPXPSHUPLVVLEOHVSHHG7RGRWKLV\RXFDQVSHFLI\LQWKHPXOWLPHGLDV\VWHPE\KRZPXFKWKHPD[LPXPSHUPLVVLEOHVSHHGFDQEHH[FHHGHGEHIRUHDZDUQLQJLVLVVXHG<RXFDQVSHFLI\ZKHWKHUWKHZDUQLQJLVWREHMXVWDYLVXDOZDUQLQJRUDQDFRXVWLFRQHDVZHOO'LVSOD\LQWKH,QVWUXPHQW'LVSOD\3HUPLVVLEOHVSHHG3HUPLVVLEOHVSHHGZKHQWKHUHLVDUHVWULFWLRQ$GGLWLRQDOVLJQZLWKUHVWULFWLRQ%7KHLOOXVWUDWLRQVKRZVWKH,QVWUXPHQW'LVSOD\LQWKH:LGHVFUHHQ&RFNSLW'ULYLQJDQGSDUNLQJ $

$6\VWHPOLPLWDWLRQV7KHV\VWHPPD\EHLPSDLUHGRUPD\QRWIXQFWLRQLQWKHIROORZLQJVLWXDWLRQV=,IWKHUHLVSRRUYLVLELOLW\HJGXHWRLQVXIILƃFLHQWLOOXPLQDWLRQRIWKHURDGKLJKO\YDULDEOHVKDGHFRQGLWLRQVRUGXHWRUDLQVQRZIRJRUKHDY\VSUD\=,IWKHUHLVJODUHHJIURPRQFRPLQJWUDIILFGLUHFWVXQOLJKWRUUHIOHFWLRQV=,IWKHUHLVGLUWRQWKHZLQGVFUHHQLQWKHYLFLQƃLW\RIWKHPXOWLIXQFWLRQFDPHUDRUWKHFDPHUDLVPLVWHGXSGDPDJHGRUREVFXUHG=,IWKHWUDIILFVLJQVDUHKDUGWRGHWHFWHJGXHWRGLUWRUVQRZRUEHFDXVHWKH\DUHFRYHUHGRUGXHWRLQVXIILFLHQWOLJKWLQJ7UDIILF6LJQ$VVLVW)XQFWLRQRI7UDIILF6LJQ$VVLVW7UDIILF6LJQ$VVLVWGHWHFWVWUDIILFVLJQVZLWKPXOƃWLIXQFWLRQFDPHUD,WDVVLVWV\RXE\GLVSOD\ƃLQJGHWHFWHGVSHHGOLPLWVDQGRYHUWDNLQJUHVWULFƃWLRQVLQWKHLQVWUXPHQWFOXVWHUDQGRSWLRQDOO\LQWKHKHDGXSGLVSOD\6LQFH7UDIILF6LJQ$VVLVWDOVRXVHVWKHGDWDVWRUHGLQWKHQDYLJDWLRQV\VWHPLWFDQXSGDWHWKHGLVSOD\LQWKHIROORZLQJVLWXDWLRQVZLWKRXWGHWHFWLQJWUDIILFVLJQV=:KHQWKHYHKLFOHFKDQJHVURDGVHJVOLSURDGRUPRWRUZD\H[LW=:KHQDYLOODJHRUWRZQERXQGDU\LVSDVVHGZKLFKLVVWRUHGLQWKHGLJLWDOPDS%'HSHQGLQJRQWKHFRXQWU\WKLVIXQFWLRQLVDOVRDYDLODEOHZLWKRXWWKHQDYLJDWLRQV\VWHP,IWKHV\VWHPGHWHFWVWKDW\RXDUHGULYLQJRQWRDVHFWLRQRIURDGLQWKHZURQJGLUHFWLRQRIWUDYHOLWWULJJHUVDZDUQLQJ7KHFDPHUDDOVRGHWHFWVWUDIILFVLJQVZLWKDUHVWULFWLRQLQGLFDWHGE\DQDGGLWLRQDOVLJQHJLQZHWFRQGLWLRQV:DUQLQJZKHQWKHPD[LPXPSHUPLVVLEOHVSHHGLVH[FHHGHG7KHV\VWHPFDQZDUQ\RXLI\RXXQLQWHQWLRQDOO\H[FHHGWKHPD[LPXPSHUPLVVLEOHVSHHG7RGRWKLV\RXFDQVSHFLI\LQWKHPXOWLPHGLDV\VWHPE\KRZPXFKWKHPD[LPXPSHUPLVVLEOHVSHHGFDQEHH[FHHGHGEHIRUHDZDUQLQJLVLVVXHG<RXFDQVSHFLI\ZKHWKHUWKHZDUQLQJLVWREHMXVWDYLVXDOZDUQLQJRUDQDFRXVWLFRQHDVZHOO 'ULYLQJDQGSDUNLQJ$

$'LVSOD\LQWKH,QVWUXPHQW'LVSOD\3HUPLVVLEOHVSHHG3HUPLVVLEOHVSHHGZKHQWKHUHLVDUHVWULFWLRQ$GGLWLRQDOVLJQZLWKUHVWULFWLRQ%7KHLOOXVWUDWLRQVKRZVWKH,QVWUXPHQW'LVSOD\LQWKH:LGHVFUHHQ&RFNSLW7UDIILF6LJQ$VVLVWLVQRWDYDLODEOHLQDOOFRXQƃWULHV,ILWLVXQDYDLODEOHGLVSOD\LVVKRZQLQWKHVSHHGRPHWHU:DUQLQJZKHQDSSURDFKLQJSHGHVWULDQFURVVƃLQJV9HKLFOHVZLWK'ULYLQJ$VVLVWDQFH3DFNDJHWKHV\VWHPFDQZDUQ\RXLI\RXDSSURDFKDSHGHVWULDQFURVVLQJZLWK\RXUYHKLFOH$PHVƃVDJHDSSHDUVLQWKHLQVWUXPHQWFOXVWHU7KHZDUQLQJRFFXUVLIDSSURSULDWHWUDIILFVLJQVRUURDGPDUNLQJVDUHGHWHFWHGDQGSHGHVWULDQVDUHSUHVHQWLQWKHGDQJHU]RQH6\VWHPOLPLWDWLRQV7KHV\VWHPPD\EHLPSDLUHGRUPD\QRWIXQFWLRQLQWKHIROORZLQJVLWXDWLRQV=,IWKHUHLVSRRUYLVLELOLW\HJGXHWRLQVXIILƃFLHQWLOOXPLQDWLRQRIWKHURDGKLJKO\YDULDEOHVKDGHFRQGLWLRQVRUGXHWRUDLQVQRZIRJRUKHDY\VSUD\=,IWKHUHLVJODUHHJIURPRQFRPLQJWUDIILFGLUHFWVXQOLJKWRUUHIOHFWLRQV'ULYLQJDQGSDUNLQJ $

$=,IWKHUHLVGLUWRQWKHZLQGVFUHHQLQWKHYLFLQƃLW\RIWKHPXOWLIXQFWLRQFDPHUDRUWKHFDPHUDLVPLVWHGXSGDPDJHGRUREVFXUHG=,IWKHWUDIILFVLJQVDUHKDUGWRGHWHFWHJGXHWRGLUWRUVQRZRUEHFDXVHWKH\DUHFRYHUHGRUGXHWRLQVXIILFLHQWOLJKWLQJ=,IWKHLQIRUPDWLRQLQWKHQDYLJDWLRQV\VWHPVGLJLWDOPDSLVLQFRUUHFWRURXWRIGDWH=,IWKHVLJQVDUHDPELJXRXVHJWUDIILFVLJQVRQFRQVWUXFWLRQVLWHVRULQDGMDFHQWODQHV6HWWLQJ7UDIILF6LJQ$VVLVW0XOWLPHGLDV\VWHP,.6HWWLQJV.$VVLVWDQFH.7UDIILF6LJQ$VVLVW$FWLYDWLQJGHDFWLYDWLQJDXWRPDWLFDGRSWLRQRIVSHHGOLPLWV5HTXLUHPHQWV=$FWLYH'LVWDQFH$VVLVW',67521,&LVDFWLYDƃWHG#6HOHFW$GRSWOLPLW#$FWLYDWHRUGHDFWLYDWHWKHIXQFWLRQ7KHVSHHGOLPLWVGHWHFWHGE\7UDIILF6LJQ$VVLVWDUHDXWRPDWLFDOO\DGRSWHGE\$FWLYH'LVWDQFH$VVLVW',67521,&'LVSOD\LQJGHWHFWHGWUDIILFVLJQVLQWKHPHGLDGLVSOD\#6HOHFW'LVSOD\LQKHDGXQLW#$FWLYDWHRUGHDFWLYDWHWKHIXQFWLRQ$GMXVWLQJWKHW\SHRIZDUQLQJ#6HOHFW9LVXDODXGLEOH9LVXDORU1RQH$GMXVWLQJWKHZDUQLQJWKUHVKROG7KLVYDOXHGHWHUPLQHVWKHVSHHGDWZKLFKDZDUQLQJLVLVVXHGZKHQH[FHHGHG#6HOHFW:DUQLQJWKUHVKROG#6HWWKHGHVLUHGVSHHG%OLQG6SRW$VVLVWDQG$FWLYH%OLQG6SRW$VVLVW)XQFWLRQRI%OLQG6SRW$VVLVWDQG$FWLYH%OLQG6SRW$VVLVWZLWKH[LWZDUQLQJ%OLQG6SRW$VVLVWDQG$FWLYH%OLQG6SRW$VVLVWXVHWZRODWHUDOUHDUIDFLQJUDGDUVHQVRUVWRPRQLWRUWKHDUHDXSWRPEHKLQG\RXUYHKLFOHDQGPGLUHFWO\QH[WWR\RXUYHKLFOH,IDYHKLFOHLVGHWHFWHGDWVSHHGVDERYHDSSUR[ƃLPDWHO\NPKDQGWKLVYHKLFOHVXEVHTXHQWO\HQWHUVWKHPRQLWRULQJUDQJHGLUHFWO\QH[WWR\RXUYHKLFOHWKHZDUQLQJODPSLQWKHRXWVLGHPLUURUOLJKWVXSUHG,IDYHKLFOHLVGHWHFWHGFORVHWR\RXUYHKLFOHLQWKHODWHUDOPRQLWRULQJUDQJHDQG\RXVZLWFKRQWKHWXUQVLJQDOLQGLFDWRULQWKHFRUUHVSRQGLQJGLUHFWLRQDZDUQLQJWRQHVRXQGVRQFH7KHUHGZDUQLQJODPSLQWKHRXWVLGHPLUURUIODVKHV,IWKHWXUQVLJQDOLQGLFDWRUUHPDLQVVZLWFKHGRQDOORWKHUGHWHFWHGYHKLFOHVDUHLQGLFDWHGRQO\E\WKHIODVKLQJRIWKHUHGZDUQLQJODPS,I\RXRYHUWDNHDYHKLFOHTXLFNO\QRZDUQLQJLVJLYHQ 'ULYLQJDQGSDUNLQJ$

$&:$51,1*5LVNRIDFFLGHQWGHVSLWH%OLQG6SRW$VVLVW%OLQG6SRW$VVLVWGRHVQRWUHDFWWRYHKLFOHVDSSURDFKLQJDQGRYHUWDNLQJ\RXDWDJUHDWO\GLIIHUHQWVSHHG$VDUHVXOW%OLQG6SRW$VVLVWFDQQRWZDUQGULYHUVLQWKLVVLWXDWLRQ#$OZD\VSD\FDUHIXODWWHQWLRQWRWKHWUDIƃILFVLWXDWLRQDQGPDLQWDLQDVDIHGLVƃWDQFHDWWKHVLGHRIWKHYHKLFOH%OLQG6SRW$VVLVWDQG$FWLYH%OLQG6SRW$VVLVWDUHRQO\DLGV7KH\PD\IDLOWRGHWHFWVRPHYHKLƃFOHVDQGDUHQRVXEVWLWXWHIRUDWWHQWLYHGULYLQJ$OZD\VHQVXUHWKDWWKHUHLVVXIILFLHQWGLVWDQFHWRWKHVLGHIRURWKHUURDGXVHUVDQGREVWDFOHV([LWZDUQLQJ7KHH[LWZDUQLQJLVDQDGGLWLRQDOIXQFWLRQRI%OLQG6SRW$VVLVWDQGFDQZDUQYHKLFOHRFFXƃSDQWVDERXWDSSURDFKLQJYHKLFOHVZKHQOHDYLQJWKHYHKLFOHZKHQVWDWLRQDU\,IWKHUHLVDYHKLFOHLQWKHPRQLWRULQJUDQJHWKLVLVLQGLFDWHGLQWKHRXWVLGHPLUURU,IDYHKLFOHRFFXSDQWRSHQVWKHGRRURQWKHVLGHZLWKWKHZDUQLQJDZDUQLQJWRQHVRXQGVDQGWKHZDUQLQJODPSLQWKHRXWVLGHPLUURUVWDUWVWRIODVK7KLVDGGLWLRQDOIXQFWLRQLVRQO\DYDLODEOHZKHQ%OLQG6SRUW$VVLVWLVDFWLYDWHGDQGXSWRDPD[LƃPXPRIWKUHHPLQXWHVDIWHUWKHLJQLWLRQKDVEHHQVZLWFKHGRII7KHH[LWZDUQLQJLVQRORQJHUDYDLODEOHRQFHWKHZDUQLQJODPSLQWKHRXWVLGHPLUURUIODVKHVWKUHHWLPHV7KHH[LWZDUQLQJLVRQO\DQDLGLVQRWDVXEVWLWXWHIRUWKHDWWHQWLRQRIYHKLFOHRFFXSDQWV7KHUHVSRQVLELOLW\IRURSHQLQJDQGFORVLQJWKHGRRUVDQGIRUOHDYLQJWKHYHKLFOHUHPDLQVZLWKWKHYHKLƃFOHRFFXSDQWV6\VWHPOLPLWDWLRQV%OLQG6SRW$VVLVWDQG$FWLYH%OLQG6SRW$VVLVWPD\EHOLPLWHGLQWKHIROORZLQJVLWXDWLRQV=7KHUHLVGLUWRQWKHVHQVRUVRUWKHVHQVRUVDUHREVFXUHG=:KHQWKHUHLVSRRUYLVLELOLW\HJGXHWRIRJKHDY\UDLQVQRZRUVSUD\=,IQDUURZYHKLFOHVDUHZLWKLQWKHPRQLWRULQJUDQJHHJELF\FOHV:DUQLQJVPD\EHLVVXHGLQHUURUZKHQGULYLQJFORVHWRFUDVKEDUULHUVRUVLPLODUVROLGODQHERUƃGHUV:DUQLQJVPD\EHLQWHUUXSWHGZKHQGULYLQJDORQJVLGHORQJYHKLFOHVIRUH[DPSOHORUULHVIRUDSURORQJHGWLPH%OLQG6SRW$VVLVWLVQRWRSHUDWLRQDOZKHQUHYHUVHJHDULVHQJDJHG%OLQG6SRW$VVLVWLVQRWRSHUDWLRQDOZKHQDWUDLOHULVFRXSOHGWRWKHYHKLFOHDQGWKHHOHFWULFDOFRQQHFWLRQKDVEHHQFRUUHFWO\HVWDEOLVKHG7KHH[LWZDUQLQJPD\EHOLPLWHGLQWKHIROORZLQJVLWXDWLRQV=:KHQWKHVHQVRUVDUHFRYHUHGE\DGMDFHQWYHKLFOHVLQQDUURZSDUNLQJVSDFHV=:KHQSHRSOHDSSURDFKWKHYHKLFOH6WDWLRQDU\RUVORZPRYLQJREMHFWVDUHQRWLQGLƃFDWHG)XQFWLRQRIEUDNHDSSOLFDWLRQ$FWLYH%OLQG6SRW$VVLVW,I$FWLYH%OLQG6SRW$VVLVWGHWHFWVDULVNRIDVLGHLPSDFWLQWKHPRQLWRULQJUDQJHDFRXUVHFRUƃUHFWLQJEUDNHDSSOLFDWLRQLVFDUULHGRXW7KLVLVGHVLJQHGWRKHOS\RXDYRLGDFROOLVLRQ'ULYLQJDQGSDUNLQJ $

$7KHFRXUVHFRUUHFWLQJEUDNHDSSOLFDWLRQLVDYDLODƃEOHLQWKHVSHHGUDQJHEHWZHHQDSSUR[LPDWHO\NPKDQGNPK&:$51,1*5LVNRIDFFLGHQWGHVSLWHEUDNHDSSOLFDWLRQRI$FWLYH%OLQG6SRW$VVLVW$FRXUVHFRUUHFWLQJEUDNHDSSOLFDWLRQFDQQRWDOZD\VSUHYHQWDFROOLVLRQ#$OZD\VVWHHUEUDNHRUDFFHOHUDWH\RXUƃVHOIHVSHFLDOO\LI$FWLYH%OLQG6SRW$VVLVWZDUQV\RXRUPDNHVDFRXUVHFRUUHFWLQJEUDNHDSSOLFDWLRQ#$OZD\VPDLQWDLQDVDIHGLVWDQFHDWWKHVLGHV&:$51,1*5LVNRIDFFLGHQWGHVSLWH$FWLYH%OLQG6SRW$VVLVW$FWLYH%OLQG6SRW$VVLVWGRHVQRWUHDFWWRWKHIROORZLQJ=2YHUWDNLQJYHKLFOHVFORVHO\RQWKHVLGHSODFLQJWKHPLQWKHEOLQGVSRWDUHD=9HKLFOHVDSSURDFKLQJDQGRYHUWDNLQJ\RXDWDYHU\GLIIHUHQWVSHHG$VDUHVXOW$FWLYH%OLQG6SRW$VVLVWPD\QHLƃWKHUJLYHZDUQLQJVQRULQWHUYHQHLQVXFKVLWƃXDWLRQV#$OZD\VSD\FDUHIXODWWHQWLRQWRWKHWUDIƃILFVLWXDWLRQDQGPDLQWDLQDVDIHGLVƃWDQFHDWWKHVLGHRIWKHYHKLFOH,IDFRXUVHFRUUHFWLQJEUDNHDSSOLFDWLRQRFFXUVWKHUHGZDUQLQJODPSIODVKHVLQWKHRXWVLGHPLUƃURUDQGDZDUQLQJWRQHVRXQGV,QDGGLWLRQGLVƃSOD\LQGLFDWLQJWKHGDQJHURIDVLGHFROOLVLRQDSSHDUVLQWKHPXOWLIXQFWLRQGLVSOD\,QUDUHFDVHVWKHV\VWHPPD\PDNHDQLQDSSURƃSULDWHEUDNHDSSOLFDWLRQ7KLVEUDNHDSSOLFDWLRQPD\EHLQWHUUXSWHGDWDQ\WLPHLI\RXVWHHUVOLJKWO\LQWKHRSSRVLWHGLUHFWLRQRUDFFHOHUDWH6\VWHPOLPLWDWLRQV(LWKHUDFRXUVHFRUUHFWLQJEUDNHDSSOLFDWLRQDSSURSULDWHWRWKHGULYLQJVLWXDWLRQRUQRQHDWDOOPD\RFFXULQWKHIROORZLQJVLWXDWLRQV=9HKLFOHVRUREVWDFOHVHJFUDVKEDUULHUVDUHORFDWHGRQERWKVLGHVRI\RXUYHKLFOH=$YHKLFOHDSSURDFKHVWRRFORVHO\RQWKHVLGH=<RXKDYHDGRSWHGDVSRUW\GULYLQJVW\OHZLWKKLJKFRUQHULQJVSHHGV=<RXEUDNHRUDFFHOHUDWHVLJQLILFDQWO\=$GULYLQJVDIHW\V\VWHPLQWHUYHQHVVXFKDV(63RU$FWLYH%UDNH$VVLVW=(63LVGHDFWLYDWHG=$ORVVRIW\UHSUHVVXUHRUDGHIHFWLYHW\UHLVGHWHFWHG=<RXDUHGULYLQJZLWKDWUDLOHUDQGWKHHOHFWULƃFDOFRQQHFWLRQWRWKHWUDLOHUKLWFKKDVEHHQFRUUHFWO\HVWDEOLVKHG 'ULYLQJDQGSDUNLQJ$

$$FWLYDWLQJGHDFWLYDWLQJ%OLQG6SRW$VVLVWRU$FWLYH%OLQG6SRW$VVLVW0XOWLPHGLDV\VWHP,.6HWWLQJV.$VVLVWDQFH#$FWLYDWHRUGHDFWLYDWH%OLQG6SRW$VVLVW$FWLYH/DQH.HHSLQJ$VVLVW$FWLYH/DQH.HHSLQJ$VVLVWIXQFWLRQ$FWLYH/DQH.HHSLQJ$VVLVWPRQLWRUVWKHDUHDLQIURQWRI\RXUYHKLFOHE\PHDQVRIPXOWLIXQFWLRQFDPHUD,WVHUYHVWRSURWHFW\RXDJDLQVWXQLQƃWHQWLRQDOO\OHDYLQJ\RXUODQH<RXZLOOEHZDUQHGE\YLEUDWLRQSXOVHVLQWKHVWHHULQJZKHHODQGJXLƃGHGE\DFRXUVHFRUUHFWLQJEUDNHDSSOLFDWLRQEDFNLQWR\RXUODQH<RXDUHZDUQHGE\YLEUDWLRQSXOVHVLQWKHVWHHUƃLQJZKHHOLQWKHIROORZLQJFLUFXPVWDQFHV=$FWLYH/DQH.HHSLQJ$VVLVWGHWHFWVODQHPDUNLQJV=$IURQWZKHHOSDVVHVRYHUWKHODQHPDUNLQJV<RXZLOODOVREHJXLGHGEDFNLQWR\RXUODQHE\PHDQVRIDFRXUVHFRUUHFWLQJEUDNHDSSOLFDWLRQLIWKHIROORZLQJFRQGLWLRQVDUHPHW=$FWLYH/DQH.HHSLQJ$VVLVWGHWHFWVODQHPDUNLQJV=$IURQWZKHHOGULYHVRYHUDVROLGODQHPDUNƃLQJ<RXFDQDFWLYDWHRUGHDFWLYDWHWKH$FWLYH/DQH.HHSLQJ$VVLVWZDUQLQJ,I\RXIDLOWRDGDSW\RXUGULYLQJVW\OH$FWLYH/DQH.HHSLQJ$VVLVWFDQQHLWKHUUHGXFHWKHULVNRIDQDFFLGHQWQRURYHUULGHWKHODZVRISK\VLFV,WFDQƃQRWWDNHLQWRDFFRXQWURDGZHDWKHURUWUDIILFFRQGLWLRQV$FWLYH/DQH.HHSLQJ$VVLVWLVRQO\DQDLG<RXDUHUHVSRQVLEOHIRUWKHGLVWDQFHWRWKHYHKLFOHLQIURQWIRUYHKLFOHVSHHGIRUEUDNLQJLQJRRGWLPHDQGIRUVWD\LQJLQODQHLIWKHODQHPDUNLQJVDUHVROLGOLQHVDODQHFRUƃUHFWLQJEUDNHDSSOLFDWLRQFDQEULQJWKHYHKLFOHEDFNLQWRWKHRULJLQDOODQH9HKLFOHVZLWK'ULYLQJ$VVLVWDQFHSDFNDJH$FWLYH/DQH.HHSLQJ$VVLVWFDQEULQJWKHYHKLFOHEDFNLQWRWKHODQHZLWKDODQHFRUUHFWLQJEUDNHDSSOLFDWLRQ,QWKHFDVHRIDEURNHQODQHPDUNLQJEHLQJGHWHFWHGDEUDNHDSSOLFDWLRQZLOORQO\EHPDGHLIDYHKLFOHKDVEHHQGHWHFWHGLQWKHDGMDƃFHQWODQH2QFRPLQJYHKLFOHVRYHUWDNLQJYHKLƃFOHVDQGYHKLFOHVLQDGMDFHQWODQHVFDQEHGHWHFƃWHG7KHEUDNHDSSOLFDWLRQLVDYDLODEOHLQWKHVSHHGUDQJHEHWZHHQNPKDQGNPK'ULYLQJDQGSDUNLQJ $

$,IDODQHFRUUHFWLQJEUDNHDSSOLFDWLRQRFFXUVGLVƃSOD\DSSHDUVLQWKHPXOWLIXQFWLRQGLVSOD\6\VWHPOLPLWDWLRQV1RODQHFRUUHFWLQJEUDNHDSSOLFDWLRQRFFXUVLQWKHIROORZLQJVLWXDWLRQV=<RXFOHDUO\DQGDFWLYHO\VWHHUEUDNHRUDFFHOƃHUDWH=<RXKDYHVZLWFKHGRQWKHWXUQVLJQDOLQGLFDƃWRUVLWXDWLRQGHSHQGHQW=$GULYLQJVDIHW\V\VWHPLQWHUYHQHVVXFKDV(63$FWLYH%UDNH$VVLVWRU$FWLYH%OLQG6SRW$VVLVW=<RXKDYHDGRSWHGDVSRUW\GULYLQJVW\OHZLWKKLJKFRUQHULQJVSHHGVRUKLJKUDWHVRIDFFHOƃHUDWLRQ=(63LVGHDFWLYDWHG=:KHQGULYLQJZLWKDWUDLOHUWKHHOHFWULFDOFRQƃQHFWLRQWRWKHWUDLOHUKDVEHHQFRUUHFWO\HVWDEOLVKHG=,IDORVVRIW\UHSUHVVXUHRUDGHIHFWLYHW\UHKDVEHHQGHWHFWHGDQGGLVSOD\HG7KHV\VWHPPD\EHLPSDLUHGRUPD\QRWIXQFWLRQLQWKHIROORZLQJVLWXDWLRQV=,IWKHUHLVSRRUYLVLELOLW\HJGXHWRLQVXIILƃFLHQWLOOXPLQDWLRQRIWKHURDGKLJKO\YDULDEOHVKDGHFRQGLWLRQVRUGXHWRUDLQVQRZIRJRUKHDY\VSUD\=7KHUHLVJODUHHJIURPRQFRPLQJWUDIILFWKHVXQRUUHIOHFWLRQV=,IWKHUHLVGLUWRQWKHZLQGVFUHHQLQWKHYLFLQƃLW\RIWKHPXOWLIXQFWLRQFDPHUDRUWKHFDPHUDLVPLVWHGXSGDPDJHGRUREVFXUHG=1RRUVHYHUDOXQFOHDUODQHPDUNLQJVDUHSUHVHQWIRURQHODQHHJQHDUURDGZRUNV=7KHODQHPDUNLQJVDUHZRUQGDUNRUFRYHUHG=7KHGLVWDQFHWRWKHYHKLFOHLQIURQWLVWRRVPDOODQGWKHODQHPDUNLQJVWKXVFDQQRWEHGHWHFWHG=7KHODQHPDUNLQJVFKDQJHTXLFNO\HJODQHVEUDQFKRIIFURVVRQHDQRWKHURUPHUJH=7KHFDUULDJHZD\LVYHU\QDUURZDQGZLQGLQJ9HKLFOHVZLWK'ULYLQJ$VVLVWDQFHSDFNDJH$FWLYH/DQH.HHSLQJ$VVLVWXVHVUDGDUVHQVRUVWRPRQLWRUVHYHUDODUHDVDURXQGWKHYHKLFOH,IWKHUDGDUVHQVRUVLQWKHUHDUEXPSHUDUHGLUW\RUFRYHUHGZLWKVQRZWKHV\VWHPPD\EHLPSDLUHGRUPD\QRWIXQFWLRQ,IDQREVWDFOHLQWKHODQHLQZKLFK\RXDUHGULYLQJKDVEHHQGHWHFWHGQRODQHFRUUHFWLQJEUDNHDSSOLFDWLRQRFFXUV$FWLYDWLQJGHDFWLYDWLQJ$FWLYH/DQH.HHSLQJ$VVLVW0XOWLPHGLDV\VWHP,.6HWWLQJV.6FKQHOO]XJULII4XLFNDFFHVV .$FWLYH/DQH.HHSLQJ$VVLVW#$FWLYDWHRUGHDFWLYDWHWKHIXQFWLRQ 'ULYLQJDQGSDUNLQJ$

Harman Becker Automotive Systems NTG6H Automotive Headunit FM, AM, DAB, USB, Bluetooth, WLAN and GNSS User Manual 04 UM car part1

Harman Becker Automotive Systems Automotive Headunit FM, AM, DAB, USB, Bluetooth, WLAN and GNSS 04 UM car part1

Contents

UM Car Part 1

Navigation menu

Namespaces

Views

Navigation