L-2022-046, Subsequent License Renewal Application Revision - Documents WCAP-18623-P/NP Revision 1 Submittal: Difference between revisions

From kanterella
Jump to navigation Jump to search
(StriderTol Bot change)
(StriderTol Bot change)
 
Line 20: Line 20:


=Text=
=Text=
{{#Wiki_filter:}}
{{#Wiki_filter:Florida Power & Light Company


15430 Endeavor Drive, Jupiter, FL 33478 ENCLOSURE 3 CONTAINS INFORMATION REQUESTED TO BE WITHHELD FROM PUBLIC DISCLOSURE UNDER 10 CFR 2.390. UPON SEPARATION FROM ENCLOSURE 3, THIS LETTER IS DECONTROLLED.
April 13, 2022 L-2022-046 10 CFR 54.17 10 CFR 2.390 U.S. Nuclear Regulatory Commission Attn: Document Control Desk 11545 Rockville Pike One White Flint North Rockville, MD 20852-2746 St. Lucie Nuclear Plant Units 1 and 2 Dockets 50-335 and 50-389 Facility Operating Licenses DPR-67 and NPF-16 SUBSEQUENT LICENSE RENEWAL APPLICATION REVISION 1 - DOCUMENTS WCAP-18623-P/NP REVISION 1 SUBMITTAL
 
==References:==
1. FPL Letter L-2021-192 dated October 12, 2021 - Subsequent License Renewal Application - Revision 1 (ADAMS Accession No. ML21285A107) 2. U.S. Nuclear Regulatory Commission (NRC) Letter dated September 24, 2021, St. Lucie Plant, Units 1 and 2 - Aging Management Audit Plan Regarding the Subsequent License Renewal Application Review (ADAMS Accession No. ML21245A305)
FPL, owner and licensee for St. Lucie Nuclear Plant (PSL) Units 1 and 2, has submitted a revised subsequent license renewal application (SLRA) for the Facility Operating Licenses for PSL Units 1 and 2 (Reference 1).
During NRCs aging management audit of the SLRA with FPL (Reference 2), FPL agreed to docket Westinghouse Electric Company LLC (Westinghouse) proprietary (P) document WCAP-18623-P, St. Lucie Units 1 & 2 Subsequent License Renewal: Fracture Mechanics Assessment of Reactor Pressure Vessel Structural Steel Supports (December 2021 Revision 1 ). This proprietary document, its non-proprietary (NP) version, and accompanying withholding Affidavit are enclosed.
contains information proprietary to Westinghouse supported by an Affidavit executed by Westinghouse, the owner of the information. The Enclosure 1 Affidavit sets forth the basis on which the information may be withheld from public disclosure by the NRC, and addresses with specificity the considerations listed in paragraph (b)(4) of 10 CFR 2.390. Accordingly, it is respectfully applied for that the information that is proprietary to Westinghouse be withheld from public disclosure in accordance with 10 CFR 2.390. Correspondence with respect to the copyright or proprietary aspects of the information or Affidavit should be addressed to the Westinghouse representative identified in their Affidavit.
Should you have any questions regarding this submittal, please contact me at (561) 304-6256 or William.Maher@fpl.com.
 
St. Lucie Nuclear Plant Units 1 and 2 Dockets 50-335 and 50-389 L-2022-046 Page 2 of 2 ENCLOSURE 3 CONTAINS INFORMATION REQUESTED TO BE WITHHELD FROM PUBLIC DISCLOSURE UNDER 10 CFR 2.390. UPON SEPARATION FROM ENCLOSURE 3, THIS LETTER IS DECONTROLLED.
I declare under penalty of perjury that the foregoing is true and correct.
Executed on the 13th day of April 2022.
Sincerely, William D. Maher Licensing Director - Nuclear Licensing Projects Cc: (w/o Enclosure 3)
Regional Administrator, USNRC, Region II Senior Resident Inspector, USNRC, St. Lucie Plant Chief, USNRC, Division of New and Renewed Licenses Senior Project Manager, USNRC, Division of New and Renewed Licenses Chief, Bureau of Radiation Control, Florida Department of Health
 
==Enclosures:==
Westinghouse Affidavit CAW-22-011 Supporting Withholding Proprietary Information from Public Disclosure Pursuant to 10 CFR 2.390 WCAP-18623-NP, St. Lucie Units 1 & 2 Subsequent License Renewal: Fracture Mechanics Assessment of Reactor Pressure Vessel Structural Steel Supports (December 2021 Revision 1) [Public Version]
WCAP-18623-P, St. Lucie Units 1 & 2 Subsequent License Renewal: Fracture Mechanics Assessment of Reactor Pressure Vessel Structural Steel Supports (December 2021 Revision 1) [Contains Information Requested to be Withheld From Public Disclosure Under 10 CFR 2.390]
William Maher Digitally signed by William Maher DN: cn=William Maher, o=Nuclear, ou=Nuclear Licensing Projects, email=william.maher@fpl.com, c=US Date: 2022.04.13 08:56:51 -04'00'
 
St. Lucie Nuclear Plant Units 1 and 2 Dockets 50-335 and 50-389 L-2022-046 Enclosure 1





(1&/2685(




:HVWLQJKRXVH$IILGDYLW&$:6XSSRUWLQJ:LWKKROGLQJ
3URSULHWDU\\,QIRUPDWLRQIURP3XEOLF'LVFORVXUH3XUVXDQWWR
&)5



WRWDOSDJHVLQFOXGLQJWKLVFRYHUVKHHW
 
7KLVUHFRUGZDVILQDODSSURYHGRQ30 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ
:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV
$)),'$9,7&$:
3DJHRI

&RPPRQZHDOWKRI3HQQV\\OYDQLD
&RXQW\\RI%XWOHU

 
,&DPLOOH=R]XOD0DQDJHU5HJXODWRU\\&RPSOLDQFHDQG&RUSRUDWH/LFHQVLQJKDYHEHHQ
VSHFLILFDOO\\GHOHJDWHGDQGDXWKRUL]HGWRDSSO\\IRUZLWKKROGLQJDQGH[HFXWHWKLV$IILGDYLWRQ
EHKDOIRI:HVWLQJKRXVH(OHFWULF&RPSDQ\\//& :HVWLQJKRXVH 

 
,DPUHTXHVWLQJWKHSURSULHWDU\\SRUWLRQVRI:&$335HYLVLRQEHZLWKKHOGIURP
SXEOLFGLVFORVXUHXQGHU&)5

 
,KDYHSHUVRQDONQRZOHGJHRIWKHFULWHULDDQGSURFHGXUHVXWLOL]HGE\\:HVWLQJKRXVHLQ
GHVLJQDWLQJLQIRUPDWLRQDVDWUDGHVHFUHWSULYLOHJHGRUDVFRQILGHQWLDOFRPPHUFLDORU
ILQDQFLDOLQIRUPDWLRQ

 
3XUVXDQWWR&)5WKHIROORZLQJLVIXUQLVKHGIRUFRQVLGHUDWLRQE\\WKH&RPPLVVLRQLQ
GHWHUPLQLQJZKHWKHUWKHLQIRUPDWLRQVRXJKWWREHZLWKKHOGIURPSXEOLFGLVFORVXUHVKRXOGEH
ZLWKKHOG
L 
7KHLQIRUPDWLRQVRXJKWWREHZLWKKHOGIURPSXEOLFGLVFORVXUHLVRZQHGDQGKDVEHHQ
KHOGLQFRQILGHQFHE\\:HVWLQJKRXVHDQGLVQRWFXVWRPDULO\\GLVFORVHGWRWKHSXEOLF
LL 
7KHLQIRUPDWLRQVRXJKWWREHZLWKKHOGLVEHLQJWUDQVPLWWHGWRWKH&RPPLVVLRQLQ
FRQILGHQFHDQGWR:HVWLQJKRXVH¶VNQRZOHGJHLVQRWDYDLODEOHLQSXEOLFVRXUFHV
LLL 
:HVWLQJKRXVHQRWHVWKDWDVKRZLQJRIVXEVWDQWLDOKDUPLVQRORQJHUDQDSSOLFDEOH
FULWHULRQIRUDQDO\\]LQJZKHWKHUDGRFXPHQWVKRXOGEHZLWKKHOGIURPSXEOLF
GLVFORVXUH1HYHUWKHOHVVSXEOLFGLVFORVXUHRIWKLVSURSULHWDU\\LQIRUPDWLRQLVOLNHO\\WR
FDXVHVXEVWDQWLDOKDUPWRWKHFRPSHWLWLYHSRVLWLRQRI:HVWLQJKRXVHEHFDXVHLWZRXOG
HQKDQFHWKHDELOLW\\RIFRPSHWLWRUVWRSURYLGHVLPLODUWHFKQLFDOHYDOXDWLRQ
MXVWLILFDWLRQVDQGOLFHQVLQJGHIHQVHVHUYLFHVIRUFRPPHUFLDOSRZHUUHDFWRUVZLWKRXW
FRPPHQVXUDWHH[SHQVHV$OVRSXEOLFGLVFORVXUHRIWKHLQIRUPDWLRQZRXOGHQDEOH
RWKHUVWRXVHWKHLQIRUPDWLRQWRPHHW15&UHTXLUHPHQWVIRUOLFHQVLQJGRFXPHQWDWLRQ
ZLWKRXWSXUFKDVLQJWKHULJKWWRXVHWKHLQIRUPDWLRQ
 
7KLVUHFRUGZDVILQDODSSURYHGRQ30 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ
:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV
$)),'$9,7&$:
3DJHRI

 
:HVWLQJKRXVHKDVSROLFLHVLQSODFHWRLGHQWLI\\SURSULHWDU\\LQIRUPDWLRQ8QGHUWKDWV\\VWHP
LQIRUPDWLRQLVKHOGLQFRQILGHQFHLILWIDOOVLQRQHRUPRUHRIVHYHUDOW\\SHVWKHUHOHDVHRI
ZKLFKPLJKWUHVXOWLQWKHORVVRIDQH[LVWLQJRUSRWHQWLDOFRPSHWLWLYHDGYDQWDJHDVIROORZV


D 
7KHLQIRUPDWLRQUHYHDOVWKHGLVWLQJXLVKLQJDVSHFWVRIDSURFHVV RU
FRPSRQHQWVWUXFWXUHWRROPHWKRGHWF ZKHUHSUHYHQWLRQRILWVXVHE\\DQ\\
RI:HVWLQJKRXVH VFRPSHWLWRUVZLWKRXWOLFHQVHIURP:HVWLQJKRXVH
FRQVWLWXWHVDFRPSHWLWLYHHFRQRPLFDGYDQWDJHRYHURWKHUFRPSDQLHV


E 
,WFRQVLVWVRIVXSSRUWLQJGDWDLQFOXGLQJWHVWGDWDUHODWLYHWRDSURFHVV RU
FRPSRQHQWVWUXFWXUHWRROPHWKRGHWF WKHDSSOLFDWLRQRIZKLFKGDWD
VHFXUHVDFRPSHWLWLYHHFRQRPLFDGYDQWDJH HJE\\RSWLPL]DWLRQRULPSURYHG
PDUNHWDELOLW\\ 


F 
,WVXVHE\\DFRPSHWLWRUZRXOGUHGXFHKLVH[SHQGLWXUHRIUHVRXUFHVRULPSURYH
KLVFRPSHWLWLYHSRVLWLRQLQWKHGHVLJQPDQXIDFWXUHVKLSPHQWLQVWDOODWLRQ
DVVXUDQFHRITXDOLW\\RUOLFHQVLQJDVLPLODUSURGXFW


G 
,WUHYHDOVFRVWRUSULFHLQIRUPDWLRQSURGXFWLRQFDSDFLWLHVEXGJHWOHYHOVRU
FRPPHUFLDOVWUDWHJLHVRI:HVWLQJKRXVHLWVFXVWRPHUVRUVXSSOLHUV


H 
,WUHYHDOVDVSHFWVRISDVWSUHVHQWRUIXWXUH:HVWLQJKRXVHRUFXVWRPHUIXQGHG
GHYHORSPHQWSODQVDQGSURJUDPVRISRWHQWLDOFRPPHUFLDOYDOXHWR
:HVWLQJKRXVH


I 
,WFRQWDLQVSDWHQWDEOHLGHDVIRUZKLFKSDWHQWSURWHFWLRQPD\\EHGHVLUDEOH

 
7KHDWWDFKHGGRFXPHQWVDUHEUDFNHWHGDQGPDUNHGWRLQGLFDWHWKHEDVHVIRUZLWKKROGLQJ7KH
MXVWLILFDWLRQIRUZLWKKROGLQJLVLQGLFDWHGLQERWKYHUVLRQVE\\PHDQVRIORZHUFDVHOHWWHUV D 
WKURXJK I ORFDWHGDVDVXSHUVFULSWLPPHGLDWHO\\IROORZLQJWKHEUDFNHWVHQFORVLQJHDFKLWHPRI
LQIRUPDWLRQEHLQJLGHQWLILHGDVSURSULHWDU\\RULQWKHPDUJLQRSSRVLWHVXFKLQIRUPDWLRQ7KHVH
ORZHUFDVHOHWWHUVUHIHUWRWKHW\\SHVRILQIRUPDWLRQ:HVWLQJKRXVHFXVWRPDULO\\KROGVLQ
FRQILGHQFHLGHQWLILHGLQ6HFWLRQV  D WKURXJK I RIWKLV$IILGDYLW
 
7KLVUHFRUGZDVILQDODSSURYHGRQ30 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ
:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV
$)),'$9,7&$:
3DJHRI
,GHFODUHWKDWWKHDYHUPHQWVRIIDFWVHWIRUWKLQWKLV$IILGDYLWDUHWUXHDQGFRUUHFWWRWKHEHVWRIP\\
NQRZOHGJHLQIRUPDWLRQDQGEHOLHI,GHFODUHXQGHUSHQDOW\\RISHUMXU\\WKDWWKHIRUHJRLQJLVWUXHDQG
FRUUHFW
([HFXWHGRQ
BBBBBBBBBBBBBBBBBBBBBBBBBBBBB

6LJQHGHOHFWURQLFDOO\\E\\
&DPLOOH=R]XOD
5HJXODWRU\\&RPSOLDQFH 
&RUSRUDWH/LFHQVLQJ
BBBBBBBBBBBBBBBBBBBBBBBBBB
 
St. Lucie Nuclear Plant Units 1 and 2 Dockets 50-335 and 50-389 L-2022-046 Enclosure 2





(1&/2685(




:&$3136W/XFLH8QLWV 6XEVHTXHQW/LFHQVH
5HQHZDO)UDFWXUH0HFKDQLFV$VVHVVPHQWRI5HDFWRU3UHVVXUH
9HVVHO6WUXFWXUDO6WHHO6XSSRUWV 'HFHPEHU5HYLVLRQ 

>3XEOLF9HUVLRQ@



WRWDOSDJHVLQFOXGLQJWKLVFRYHUVKHHW
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ
:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU
5HYLVLRQ
6W/XFLH8QLWV 6XEVHTXHQW
/LFHQVH5HQHZDO)UDFWXUH0HFKDQLFV
$VVHVVPHQWRI5HDFWRU3UHVVXUH9HVVHO
6WUXFWXUDO6WHHO6XSSRUWV
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ
:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV
(OHFWURQLFDOO\\DSSURYHGUHFRUGVDUHDXWKHQWLFDWHGLQWKHHOHFWURQLFGRFXPHQWPDQDJHPHQWV\\VWHP
:HVWLQJKRXVH(OHFWULF&RPSDQ\\//&
:HVWLQJKRXVH'ULYH
&UDQEHUU\\7RZQVKLS3$86$
:HVWLQJKRXVH(OHFWULF&RPSDQ\\//&
$OO5LJKWV5HVHUYHG
:&$313
5HYLVLRQ
6W/XFLH8QLWV 6XEVHTXHQW/LFHQVH5HQHZDO)UDFWXUH
0HFKDQLFV$VVHVVPHQWRI5HDFWRU3UHVVXUH9HVVHO6WUXFWXUDO
6WHHO6XSSRUWV
'HFHPEHU

$OH[DQGULD06FRWW 
59&9'HVLJQDQG$QDO\\VLV
*RUGRQ=+DOO 
6WUXFWXUDO'HVLJQDQG$QDO\\VLV

9HULILHU
*HRUJH-'HPHWUL 
59&9'HVLJQDQG$QDO\\VLV

5HYLHZHUV 1LFKRODV0%LVFHJOLD 

-%ULDQ+DOO 

$QGUHZ(+DZN 


$SSURYHG /\\QQ$3DWWHUVRQ 0DQDJHU
59&9'HVLJQDQG$QDO\\VLV
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV
LL
:&$313
'HFHPEHU

5HYLVLRQ
)25(:25'
7KLVGRFXPHQWFRQWDLQV:HVWLQJKRXVH(OHFWULF&RPSDQ\\//&SURSULHWDU\\LQIRUPDWLRQDQGGDWDZKLFKKDV
EHHQLGHQWLILHGE\\EUDFNHWV&RGLQJ DFH DVVRFLDWHGZLWKWKHEUDFNHWVVHWVIRUWKWKHEDVLVRQZKLFKWKH
LQIRUPDWLRQLVFRQVLGHUHGSURSULHWDU\\
7KHSURSULHWDU\\LQIRUPDWLRQDQGGDWDFRQWDLQHGLQWKLVUHSRUWZHUHREWDLQHGDWFRQVLGHUDEOH:HVWLQJKRXVH
H[SHQVHDQGLWVUHOHDVHFRXOGVHULRXVO\\DIIHFWRXUFRPSHWLWLYHSRVLWLRQ7KLVLQIRUPDWLRQLVWREHZLWKKHOG
IURPSXEOLFGLVFORVXUHLQDFFRUGDQFHZLWKWKH5XOHVRI3UDFWLFH&)5DQGWKHLQIRUPDWLRQSUHVHQWHG
KHUHLQLVWREHVDIHJXDUGHGLQDFFRUGDQFHZLWK&)5:LWKKROGLQJRIWKLVLQIRUPDWLRQGRHVQRW
DGYHUVHO\\DIIHFWWKHSXEOLFLQWHUHVW
7KLVLQIRUPDWLRQKDVEHHQSURYLGHGIRU\\RXULQWHUQDOXVHRQO\\DQGVKRXOGQRWEHUHOHDVHGWRSHUVRQVRU
RUJDQL]DWLRQVRXWVLGHWKH'LUHFWRUDWHRI5HJXODWLRQDQGWKH$&56ZLWKRXWWKHH[SUHVVZULWWHQDSSURYDORI
:HVWLQJKRXVH(OHFWULF&RPSDQ\\//&6KRXOGLWEHFRPHQHFHVVDU\\WRUHOHDVHWKLVLQIRUPDWLRQWRVXFK
SHUVRQVDVSDUWRIWKHUHYLHZSURFHGXUHSOHDVHFRQWDFW:HVWLQJKRXVH(OHFWULF&RPSDQ\\//&ZKLFKZLOO
PDNHWKHQHFHVVDU\\DUUDQJHPHQWVUHTXLUHGWRSURWHFWWKH&RPSDQ\\¶VSURSULHWDU\\LQWHUHVWV
7KHSURSULHWDU\\LQIRUPDWLRQLQWKHEUDFNHWVLVSURYLGHGLQWKHSURSULHWDU\\YHUVLRQRIWKLVUHSRUW :&$3
35HYLVLRQ 


 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV
LLL
:&$313
'HFHPEHU

5HYLVLRQ
5(&25'2)5(9,6,216
5HYLVLRQ
'DWH
5HYLVLRQ'HVFULSWLRQ

1RYHPEHU
2ULJLQDO,VVXH

'HFHPEHU
,QFRUSRUDWHFXVWRPHUFRPPHQWUHVSRQVHVDQGFORVHWKHRSHQLWHPLQ
5HYLVLRQ


 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV
LY
:&$313
'HFHPEHU

5HYLVLRQ
7$%/(2)&217(176
(;(&87,9(6800$5<Y

,1752'8&7,21

*(1(5$/0(7+2'2/2*<

6833257&21),*85$7,210$7(5,$/$1'*(20(75<

/2$',1*&21',7,216$1'675(66$1$/<6,6

7232)+25,=217$/6833257+/-'+25,=217$/3/$7(675(66

7232)+25,=217$/6833257+/-'9(57,&$/3/$7(675(66

%277202)+25,=217$/6833257+/-'+25,=217$/3/$7(675(66

%2/76&211(&7,1*&2/801$1'%277202)+25,=217$/6833257)25&(6$1'
020(176

%2/76$762&.(76/,'(5(675$,1,1*3/$7(6675(66

)5$&785(0(&+$1,&60(7+2'2/2*<

)5$&785(728*+1(66'(7(50,1$7,21

1HXWURQ(PEULWWOHPHQWDQG1LO'XFWLOLW\\7UDQVLWLRQ7HPSHUDWXUHRI5396XSSRUWV

6WUDLQ5DWH(IIHFWV

%XON0DWHULDO7HPSHUDWXUH

,QLWLDO1LO'XFWLOLW\\7UDQVLWLRQ7HPSHUDWXUH

6W/XFLH&0755HYLHZ

(VWLPDWLRQRI8QLUUDGLDWHG)UDFWXUH7RXJKQHVV

([DPSOHRI)UDFWXUH7RXJKQHVV'HWHUPLQDWLRQE\\&XUYH6KLIW$670$IRU6W/XFLH8QLW


$670$ &ROXPQDQG+RUL]RQWDO6XSSRUW&RPSRQHQWVIRU6W/XFLH8QLW 

$670$% 6W/XFLH8QLW 

$670$ %ROWVIRU6W/XFLH8QLWVDQG 

)UDFWXUH7RXJKQHVV5HVXOWV

675(66,17(16,7<)$&7256$1'32678/$7(')/$:6

3ODWH0RGHO

5RXQG%DU0RGHO IRU%ROWV 

$//2:$%/()/$:6,=(6

&5,7,&$/)/$:6,=(&$/&8/$7,215(68/76

7232)+25,=217$/6833257+/-'+25,=217$/3/$7(

%DVH3ODWH

7232)+25,=217$/6833257+/-'9(57,&$/3/$7(

%277202)+25,=217$/6833257+/-'+25,=217$/3/$7(

&ROXPQ

%2/76&211(&7,1*&2/801$1'%277202)+25,=217$/6833257

$QFKRU%ROWV

%2/76$762&.(76/,'(5(675$,1,1*3/$7(6

',6&866,212)&21&/86,216

(9$/8$7,212)&855(17&21',7,216

&+$1*(,1(0%5,77/(0(1729(57,0(

&5,7,&$/)/$:6,=(&21&/86,216

5()(5(1&(6

 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV
Y
:&$313
'HFHPEHU

5HYLVLRQ
(;(&87,9(6800$5<
$VSODQWVDSSO\\IRU\\HDUOLFHQVXUH 6XEVHTXHQW/LFHQVH5HQHZDO6/5 WKH8QLWHG6WDWHV 86 1XFOHDU
5HJXODWRU\\&RPPLVVLRQ 15& KDVTXHULHGWKHQXFOHDUSRZHUSODQWLQGXVWU\\WRLQYHVWLJDWHWKHLPSDFWRI
QHXWURQHPEULWWOHPHQW UDGLDWLRQHIIHFWV RQWKHUHDFWRUSUHVVXUHYHVVHO 539 VXSSRUWVGXHWRH[WHQGHG
SODQWRSHUDWLRQSDVW\\HDUV7KH8615&KDVUHOHDVHG*HQHULF$JLQJ/HVVRQV/HDUQHG *$// 6/5
UHSRUW185(*>@ZKLFKSURYLGHVLQIRUPDWLRQUHJDUGLQJOLFHQVHUHQHZDOIRU\\HDUV7KLVUHSRUW
GRHVQRWLQFOXGHJXLGDQFHIRUDQDO\\VLVRIORVVRIIUDFWXUHWRXJKQHVVGXHWRLUUDGLDWLRQHPEULWWOHPHQWIRU
VWUXFWXUDOVWHHOVXSSRUWFRPSRQHQWVLQWKHYLFLQLW\\RIWKH539KRZHYHUUHFHQW8615&PHHWLQJVKDYH
SURYLGHG SUHOLPLQDU\\JXLGDQFH RQHYDOXDWLQJLUUDGLDWLRQ HPEULWWOHPHQW RI 539 VWHHO VXSSRUWV>@7KH
UDGLDWLRQ HIIHFWV RQ 539 VXSSRUWV ZHUH SUHYLRXVO\\ LQYHVWLJDWHG DQG UHVROYHG DV SDUW RI *6, LQ
185(* 5HYLVLRQ  >@ 185(* SXEOLVKHG LQ 0D\\   >@ DQG 185(*&5
SXEOLVKHGLQ >@7KHFRQFOXVLRQVLQ185(*5HYLVLRQ>@VWDWHGWKDWWKHVXSSRUWVZHUH
DFFHSWDEOHIRUFRQWLQXHGRSHUDWLRQDQG*6,ZDVUHVROYHG+RZHYHUIRUSODQWVDSSO\\LQJIRU\\HDUOLIH
OLFHQVXUHWKH8615&KDVUHTXHVWHGDUHDVVHVVPHQWRIWKH539VWUXFWXUDOVWHHOVXSSRUWVEDVHGRQD
IUDFWXUHPHFKDQLFVHYDOXDWLRQWRDFFRXQWIRUQHXWURQHPEULWWOHPHQW UDGLDWLRQHIIHFWV 
$VSDUWRI6W/XFLH8QLWVDQG6/5DSSOLFDWLRQ ZKLFKKDVUHFHQWO\\EHHQVXEPLWWHGWRWKH8615& 
DQDVVHVVPHQWRIWKHVWUXFWXUDOVWHHO539VXSSRUWVDVLWSHUWDLQVWRWKHLUUDGLDWLRQDJLQJHIIHFWVIRU\\HDUV
ZDVFRPSOHWHGLQ/756'$>@7KHDVVHVVPHQWLQFOXGHGDWHFKQLFDOMXVWLILFDWLRQWRVXSSRUWDQ
LQVSHFWLRQEDVHGDSSURDFKZKLFKLVSHUPLWWHGE\\WKHSUHGHFLVLRQDOGUDIWLQWHULPVWDIIJXLGDQFH>@DVDQ
DSSURSULDWHPHDQVRIPDQDJLQJWKHLUUDGLDWLRQDJLQJFRQFHUQVWKURXJKWKHVXEVHTXHQWSHULRGRIH[WHQGHG
RSHUDWLRQ7KHDVVHVVPHQWZDVDFRPSDUDWLYHDQDO\\VLVWRWKH3RLQW%HDFK539VWUXFWXUDOVWHHOVXSSRUWV
DQDO\\VLV>@)RU3RLQW%HDFKLWZDVFRQFOXGHGWKDWWKH$60(6HFWLRQ;,,Q6HUYLFH,QVSHFWLRQ ,6, 
SURJUDPLVDVXIILFLHQWDSSURDFKWRPDQDJHWKHUDGLDWLRQHPEULWWOHPHQWHIIHFWVRQWKH539VXSSRUWIRU
FDOHQGDU \\HDUV  HIIHFWLYH IXOO SRZHU \\HDU ()3<  %DVHG RQ WKH FRPSDUDWLYH DVVHVVPHQW LQ
/756'$ LW ZDV GHWHUPLQHG WKDW FRQWLQXHG LQVSHFWLRQV LQ DFFRUGDQFH ZLWK WKH $60(
6HFWLRQ;,>@,6,SURJUDPWRDGGUHVVWKHLUUDGLDWLRQDJLQJHIIHFWVIRUWKH539VXSSRUWVDUHMXVWLILDEOHIRU
WKHVXEVHTXHQWSHULRGRIH[WHQGHGRSHUDWLRQDQGQRDGGLWLRQDOLQVSHFWLRQLVUHTXLUHGEH\\RQGWKHFXUUHQW
$60(6HFWLRQ;,,6,SURJUDPDW6W/XFLH8QLWVDQG
7KHUHSRUWKHUHLQSURYLGHVDSODQWVSHFLILFGHIHQVHLQGHSWKIUDFWXUHPHFKDQLFVDQDO\\VLVRIWKHVWUXFWXUDO
VWHHO 539 VXSSRUWV DQG LQYHVWLJDWLRQ RIWKHLPSDFWRI QHXWURQHPEULWWOHPHQW UDGLDWLRQ HIIHFWV  RI WKH
VXSSRUWVGXHWRH[WHQGHGSODQWRSHUDWLRQSDVW\\HDUVWRVXSSRUWWKHDVVHVVPHQWWKDWZDVFRPSOHWHGLQ
/756'$>@IRU6W/XFLH8QLWVDQG$GHWDLOHGIUDFWXUHPHFKDQLFVHYDOXDWLRQLVSHUIRUPHGRQ
6W/XFLH8QLWVDQG539VWUXFWXUDOVWHHOVXSSRUWVWRFDOFXODWHWKHFULWLFDOIODZVL]HVIROORZLQJWKHJHQHUDO
JXLGDQFHRI$60(6HFWLRQ;,>@WRLQYHVWLJDWHEULWWOHIUDFWXUHRIWKHVWUXFWXUDOVWHHOVXSSRUWVSHU185(*
5HYLVLRQDQG185(*)LYHVHSDUDWHVWUXFWXUDOVWHHOFRPSRQHQWVZLWKLQWKH6W/XFLH8QLWV
DQG539VXSSRUWV\\VWHPZHUHHYDOXDWHG7KHVHFRPSRQHQWVDUHWKH'KRUL]RQWDOSODWHDQG'YHUWLFDO
SODWHDWWKHWRSRIWKHKRUL]RQWDOVXSSRUWWKH'KRUL]RQWDOSODWHDWWKHERWWRPRIWKHKRUL]RQWDOVXSSRUWWKH
EROWVZKLFKFRQQHFWWKHFROXPQDQGERWWRPRIWKHKRUL]RQWDOVXSSRUWDQGWKHEROWVDWWKHVRFNHWVOLGH
UHVWUDLQLQJSODWHV7KHFULWLFDOIODZVL]HVDUHGHWHUPLQHGE\\HTXDWLQJWKHDSSOLHGVWUHVVLQWHQVLW\\IDFWRUWR
WKHPDWHULDOVSHFLILFIUDFWXUHWRXJKQHVV7KHVWUHVVLQWHQVLW\\IDFWRUVZHUHGHWHUPLQHGIRUWKHYDULRXVORDGLQJ
FRPELQDWLRQVIRUWKH6W/XFLH8QLWVDQG539VXSSRUWVDQGIRUDQDUUD\\RIIODZVKDSHV7KHLPSDFWRI
QHXWURQ HPEULWWOHPHQW RQ WKH 539 VWUXFWXUDO VWHHO VXSSRUWV PDWHULDOVSHFLILF IUDFWXUH WRXJKQHVV ZDV
GHWHUPLQHGDWFDOHQGDU\\HDUV ()3< DQGDOVRDW\\HDUVDVDVHQVLWLYLW\\VWXG\\IRUZLWKDQGZLWKRXW
DQDO\\WLFDOXQFHUWDLQWLHVDVVRFLDWHGZLWKWKHPHWKRGRORJ\\XVHGWRFDOFXODWHHPEULWWOHPHQW
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV
YL
:&$313
'HFHPEHU

5HYLVLRQ
%DVHGRQWKHPDJQLWXGHRIWKHFDOFXODWHGFULWLFDOIODZVL]HVGLVFXVVHGLQ6HFWLRQRIWKLVUHSRUWLWFDQEH
GHPRQVWUDWHG WKDW WKH FDOFXODWHG FULWLFDO IODZVL]HV EDVHG RQ  FDOHQGDU \\HDUV  ()3<  RI QHXWURQ
HPEULWWOHPHQWDUHVXIILFLHQWO\\ODUJH LHIODZWROHUDQW DVFRPSDUHGWR>




@DFH
)RUWKHILYHFRPSRQHQWVZLWKLQWKH539VXSSRUWV\\VWHPLWZDVFRQFOXGHGWKDWWKHUHZDVHQRXJKPDUJLQ
EHWZHHQWKH>


@DFH%DVHG
RQWKHGHWDLOHGFRQFOXVLRQVLQ6HFWLRQWKH539VXSSRUWV\\VWHPVDW6W/XFLH8QLWVDQGDUHVWUXFWXUDOO\\
VWDEOH LHIODZWROHUDQW FRQVLGHULQJ\\HDUVRIUDGLDWLRQHPEULWWOHPHQWHIIHFWVRQWKHVXSSRUWVDQGD
VXIILFLHQWOHYHORIIODZWROHUDQFHLVGHPRQVWUDWHGWRMXVWLI\\FRQWLQXLQJWKHFXUUHQWH[DPLQDWLRQVRIWKH539
VWUXFWXUDOVWHHOVXSSRUWV
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ

,1752'8&7,21
$VSODQWVDSSO\\IRU\\HDUOLFHQVXUH 6XEVHTXHQW/LFHQVH5HQHZDO6/5 WKH8QLWHG6WDWHV 86 1XFOHDU
5HJXODWRU\\&RPPLVVLRQ 15& KDVTXHULHGWKHQXFOHDUSRZHUSODQWLQGXVWU\\WRLQYHVWLJDWHWKHLPSDFWRI
QHXWURQHPEULWWOHPHQW UDGLDWLRQHIIHFWV RQWKHUHDFWRUSUHVVXUHYHVVHO 539 VXSSRUWVGXHWRH[WHQGHG
SODQWRSHUDWLRQSDVW\\HDUV7KHUDGLDWLRQHIIHFWVRQWKH539VXSSRUWVZHUHSUHYLRXVO\\LQYHVWLJDWHGDQG
UHVROYHGDVSDUWRI*6,LQ185(*5HYLVLRQ>@185(* SXEOLVKHGLQ0D\\ >@
DQG185(*&5 SXEOLVKHGLQ >@7KHFRQFOXVLRQVLQ185(*5HYLVLRQVWDWHGWKDW
WKHVXSSRUWVZHUHDFFHSWDEOHIRUFRQWLQXHGRSHUDWLRQDQG*6,ZDVUHVROYHGDVIROORZV
7KHSUHOLPLQDU\\FRQFOXVLRQLQGLFDWHGWKDWWKHSRWHQWLDOSUREOHP>HPEULWWOHPHQWRIVXSSRUWVGXHWR
UDGLDWLRQHIIHFWV@GLGQRWSRVHDQLPPHGLDWHWKUHDWWRSXEOLFKHDOWKDQGVDIHW\\<<7KHDERYHWHQWDWLYH
UHVXOWV LQGLFDWHG WKDW SODQW VDIHW\\ FRXOG EH PDLQWDLQHG GHVSLWH 5966 >UHDFWRU YHVVHO VXSSRUW
VWUXFWXUHV@UDGLDWLRQGDPDJH<<,QRUGHUWRHQFRPSDVVWKHXQFHUWDLQWLHVLQWKHYDULRXVDQDO\\VHVDQG
SURYLGHDQRYHUDOOFRQVHUYDWLYHDVVHVVPHQWVHYHUDOVWUXFWXUDODQDO\\VHVFRQGXFWHGGHPRQVWUDWHGWKH
IROORZLQJ

3RVWXODWLQJ WKDW RQH RI WKH IRXU 539 VXSSRUWV ZDV EURNHQ LQ D W\\SLFDO 3:5 WKH
UHPDLQLQJVXSSRUWVZRXOGFDUU\\WKHUHDFWRUYHVVHOORDGHYHQXQGHU66(>VDIHVKXWGRZQ
HDUWKTXDNH@VHLVPLFORDGV

,IDOOVXSSRUWVZHUHDVVXPHGWREHWRWDOO\\UHPRYHG LHEURNHQ WKHVKRUWVSDQRI
SLSLQJEHWZHHQWKHYHVVHODQGWKHVKLHOGZDOOZRXOGVXSSRUWWKHORDGRIWKHYHVVHO
7KHUHVXOWVRIWKHDQDO\\VHVYLUWXDOO\\HOLPLQDWHGWKHFRQFHUQIRUERWKUDGLDWLRQHPEULWWOHPHQWDQG
VLJQLILFDQW VWUXFWXUDO GDPDJH IURP D SRVWXODWHG 539 IDLOXUH<< %DVHG RQ WKHVWDII&#xb6;V UHJXODWRU\\
DQDO\\VLVWKHLVVXHZDVUHVROYHGZLWKQRQHZUHTXLUHPHQWV&RQVLGHUDWLRQRIDOLFHQVHUHQHZDO
SHULRGRI\\HDUVGLGQRWFKDQJHWKLVFRQFOXVLRQ
%DVHGRQFRQFOXVLRQVLQ185(*DQG8615&0HPRUDQGXPVRQ*6,>@LWZDVFRQFOXGHGWKDW
WKH539VXSSRUWVZHUHQRWDFRQFHUQIRUWKHHQWLUHW\\RILWVSODQWOLIH LHDQG\\HDUV HYHQLQWKH
H[WUHPHFDVHZKHUHDOOWKHVXSSRUWVZHUHWRWDOO\\UHPRYHG LHEURNHQ WKHSLSLQJKDVDFFHSWDEOHPDUJLQ
WRFDUU\\WKHORDGRIWKHYHVVHO+RZHYHUIRUSODQWVDSSO\\LQJIRU\\HDUOLIHOLFHQVXUHWKH8615&KDV
UHFHQWO\\UHTXHVWHGDUHDVVHVVPHQWRIWKH539VWUXFWXUDOVWHHOVXSSRUWVEDVHGRQDIUDFWXUHPHFKDQLFV
HYDOXDWLRQ WR DFFRXQW IRU QHXWURQ HPEULWWOHPHQW >@ 7KH 86 15& *HQHULF$JLQJ /HVVRQV /HDUQHG
*$// 6XEVHTXHQW/LFHQVH5HQHZDO 6/5 UHSRUW185(*>@IRU\\HDUOLFHQVHUHQHZDOGRHVQRW
LQFOXGHJXLGDQFHIRUDQDO\\VLVRIORVVRIIUDFWXUHWRXJKQHVVGXHWRLUUDGLDWLRQHPEULWWOHPHQWIRUVWUXFWXUDO
VWHHOVXSSRUWFRPSRQHQWVLQWKHYLFLQLW\\RIWKH539+RZHYHUUHFHQW8615&PHHWLQJVKDYHSURYLGHG
SUHOLPLQDU\\JXLGDQFHLQ>@ZKLFKVWDWHVWKDW185(*SURYLGHVJHQHUDOJXLGDQFHDQGDQDFFHSWDEOH
DSSURDFKIRUWKHHYDOXDWLRQRIWKHORVVRIIUDFWXUHWRXJKQHVVRIWKH539VXSSRUWVGXHWRUDGLDWLRQHIIHFWV
IRUORQJWHUPRSHUDWLRQ
7KHUH DUH WZR SRWHQWLDO IUDFWXUH PHFKDQLFV VWUDWHJLHV WKDW DUH LGHQWLILHG WR UHVROYH WKH UDGLDWLRQ
HPEULWWOHPHQWFRQFHUQEDVHGRQ185(*DQG185(*2QHDSSURDFKLVWRFRPSDUHWKHORZHVW
VHUYLFHWHPSHUDWXUH /67 ZLWKWKHPDWHULDODGMXVWHGUHIHUHQFHWHPSHUDWXUHFRQVLGHULQJLUUDGLDWLRQHIIHFWV
,IWKH/67LVKLJKHUWKDQWKHPDWHULDODGMXVWHGUHIHUHQFHWHPSHUDWXUHWKHQWKH539VXSSRUWVDUHDFFHSWDEOH
+LVWRULFDOO\\ LW ZDV GHWHUPLQHG WKDW WKH /67 PHWKRG ZRXOG QRW SURYLGH VXIILFLHQW PDUJLQ KHQFH WKLV
PHWKRGRORJ\\ZLOOQRWEHXVHGIRUWKH6W/XFLH539VWUXFWXUDOVWHHOVXSSRUWV
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
7KHVHFRQGDSSURDFKXVHGWRLQYHVWLJDWHEULWWOHIUDFWXUHRIWKHVWUXFWXUDOVWHHOVXSSRUWVSHU185(*
LVWRSHUIRUPDGHWDLOHGIUDFWXUHPHFKDQLFVHYDOXDWLRQLQRUGHUWRFDOFXODWHWKHFULWLFDOIODZVL]HVVLPLODUWR
WKHJHQHUDOJXLGDQFHRI$60(6HFWLRQ;,$SSHQGL[$7KHHYDOXDWLRQFRXOGEHXVHGWRGHPRQVWUDWHWKDW
WKHFDOFXODWHGFULWLFDOIODZVL]HVEDVHGRQ\\HDUVRIQHXWURQHPEULWWOHPHQWDUHVXIILFLHQWO\\ODUJH LHIODZ
WROHUDQW DVFRPSDUHGWR>




@DFH
1RWH WKDW FXUUHQW $60( 6HFWLRQ ;,,:) LQVHUYLFH LQVSHFWLRQ IRU VXSSRUWV UHTXLUHV RQO\\ D YLVXDO
H[DPLQDWLRQ 97 $VGLVFXVVHGLQ6HFWLRQPDJQHWLFSDUWLFOHWHVWLQJ 07 LVUHTXLUHGIRURQHRIWKH
WKUHH539QR))OHVXSSRUWIHHWIRU6W/XFLH8QLWVDQG7KHREMHFWLYHRIWKHDQDO\\VLVLVWRGHPRQVWUDWHD
VXIILFLHQWOHYHORIIODZWROHUDQFHWRMXVWLI\\FRQWLQXLQJWKHFXUUHQWYLVXDOH[DPLQDWLRQV 97 
,WVKRXOGEHQRWHGWKDWDVSDUWRIWKHRYHUDOOUHVROXWLRQRI*6,LQ185(*DGHWDLOHGIUDFWXUH
PHFKDQLFVHYDOXDWLRQZDVSHUIRUPHGLQIRURQHRIWKHSLORWSODQWVLQ185(*&5QDPHO\\
7XUNH\\3RLQW8QLW WKHRWKHUSODQWZDV7URMDQ 7KHFRQFOXVLRQVLQ185(*&5LQGLFDWHGWKDWIRU
WKHPRVWVHYHUHFUHGLEOHORDGLQJ GHDGZHLJKWSOXVODUJHEUHDN/2&$ DWHIIHFWLYHIXOOSRZHU\\HDUV
()3<  LH\\HDUV WKHEHVWHVWLPDWHPLQLPXPFULWLFDOIODZVL]HGHSWKLVLQFKIRUWKHVWUXFWXUDO
VXSSRUWEHDPV)XUWKHUPRUHWKHVWXG\\KDGFRQFOXGHGWKDWFDOFXODWHGIODZVL]HLVLQVHQVLWLYHWRUHDFWRU
RSHUDWLQJWLPHDIWHUa()3<DQGDWVWDUWXS ()3< WKHVL]HLVLQFK7KHVWXG\\LQ185(*&5
DOVRGHPRQVWUDWHGWKDWFRQVLGHULQJXQFHUWDLQWLHVLQWKHIUDFWXUHWRXJKQHVVLQLWLDOQLOGXFWLOLW\\WUDQVLWLRQ
WHPSHUDWXUH 1'77R DQGWKHRSHUDWLQJWHPSHUDWXUHRIWKHVXSSRUWFRPSRQHQWVWKH RQHVWDQGDUG
GHYLDWLRQ  YDOXHV RI WKH FULWLFDO IODZ VL]H DW  ()3< DUH a DQG  LQFK )RU WKH ORDGLQJ FDVH RI
GHDGZHLJKW SOXV VDIH VKXWGRZQ HDUWKTXDNH WKH FULWLFDO IODZVL]H LV VXEVWDQWLDOO\\ ODUJHU  LQFKHV DV
FRPSDUHGZLWKLQFK DW()3<
(YHQ WKRXJK WKH IUDFWXUH PHFKDQLFV VWXG\\ SHUIRUPHG IRU 7XUNH\\ 3RLQW 8QLW  DQG 7URMDQ LQ
185(*&5 FRQGXFWHGLQ KDGFDOFXODWHGVPDOOFULWLFDOIODZVL]HVWKDWFRXOGEHDVRXUFHRI
FRQFHUQIRUEULWWOHIUDFWXUHWKH8615&VWDIILQKDGUHYLHZHGVHYHUDORWKHUVWUXFWXUDODQDO\\VHVLQ
DGGLWLRQ WR WKH IUDFWXUH PHFKDQLFV HYDOXDWLRQ %DVHG RQ WKH 86 15&&#xb6;V UHYLHZ RI RWKHU VWUXFWXUDO
FRQVHTXHQFHDQDO\\VLVDILQDOFRQFOXVLRQ DVVWDWHGLQ185(*RI*6, ZDVUHDFKHGWKDWHYHQLI
RQHRIWKH539VXSSRUWVZDVEURNHQLQDSUHVVXUL]HGZDWHUUHDFWRU 3:5 WKHUHPDLQLQJVXSSRUWVZRXOG
VDIHO\\FDUU\\WKH539ORDGXQGHUVHLVPLFHYHQWV7KHVWUXFWXUDODQDO\\VHVDOVRFRQFOXGHGWKDWHYHQLIDOOWKH
539VXSSRUWVZHUHEURNHQWKHVKRUWVSDQRISLSLQJEHWZHHQWKHYHVVHODQGWKHVKLHOGZDOOZRXOGVXSSRUW
WKHORDGRIWKH539
$VDUHVXOWWKHIUDFWXUHPHFKDQLFVHYDOXDWLRQLQ185(*&5FDQEHFRQVLGHUHGDGHIHQVHLQGHSWK
VWXG\\RIWKHVWUXFWXUDOLQWHJULW\\RIWKH539VXSSRUWVDVVXSSOHPHQWHGE\\WKHVWUXFWXUDODQDO\\VLVZKLFK
GHPRQVWUDWHGWKDWWKHSLSLQJFDQZLWKVWDQGWKHORDGRIWKH539DIWHUIDLOXUHRIDOOYHVVHOVXSSRUWV,WVKRXOG
EHQRWHGWKDWWKHIODZVL]HVSRVWXODWHGLQWKH185(*&5ZRXOGKDYHEHHQLGHQWLILHGGXULQJRULJLQDO
IDEULFDWLRQ SUHVHUYLFHLQVSHFWLRQ RIWKHVXSSRUWZHOGVHLWKHUE\\G\\HSHQHWUDQWWHVWLQJPDJQHWLFSDUWLFOH
RUHYHQXOWUDVRQLFHTXLSPHQWDVUHTXLUHGE\\$,6& $PHULFDQ,QVWLWXWHRI6WHHO&RQVWUXFWLRQ DQG$:6
$PHULFDQ:HOGLQJ6RFLHW\\ 
7KHJRDORIWKHDQDO\\VLVKHUHLQIRU6W/XFLH8QLWVDQGIRUWKH\\HDU6/5LVWRNHHSFRQVLVWHQWZLWK
WKHRYHUDOOPHWKRGRORJ\\WKDWKDGEHHQSUHYLRXVO\\DFFHSWHGE\\WKHLQGXVWU\\DQG8615&LQ185(*
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
185(*DQG185(*&5ZKLOHDWWKHVDPHWLPHGHPRQVWUDWHWKDWWKH539VXSSRUWVZLWK
FRQVLGHUDWLRQRIQHXWURQHPEULWWOHPHQWDUHVWUXFWXUDOO\\VDIHIRUSODQWOLIHH[WHQVLRQWR\\HDUV
7KXVWKHHYDOXDWLRQLQWKLVUHSRUWIRU6W/XFLH8QLWVDQGGHWHUPLQHVWKHFULWLFDOIODZVL]HVEDVHGRQD
IUDFWXUHPHFKDQLFVHYDOXDWLRQRIWKH539VWUXFWXUDOVWHHOVXSSRUWVWRLQYHVWLJDWHWKHLPSDFWRIQHXWURQ
HPEULWWOHPHQW UDGLDWLRQHIIHFWV IRUDQRSHUDWLQJOLIHRI\\HDUV7KHJHQHUDOPHWKRGRORJ\\RIWKHIUDFWXUH
PHFKDQLFV HYDOXDWLRQ LV GHVFULEHG LQ 6HFWLRQ  7KH 6W /XFLH VXSSRUW FRQILJXUDWLRQ PDWHULDOV DQG
JHRPHWU\\DUHSURYLGHGLQ6HFWLRQRIWKLVUHSRUW6HFWLRQGHVFULEHVWKHSODQWVSHFLILFORDGLQJFRQGLWLRQV
DQGWKHVWUHVVHVXVHGLQWKHHYDOXDWLRQZKLOH6HFWLRQSURYLGHVLQIRUPDWLRQUHJDUGLQJIUDFWXUHWRXJKQHVV
SODQWVSHFLILFQHXWURQHPEULWWOHPHQWDQGSRVWXODWLRQRIIODZVL]HV6HFWLRQGHVFULEHVWKHDOORZDEOHIODZ
VL]HVZKLFKDUHFRPSDUHGWRWKHFULWLFDOIODZVL]HV6HFWLRQSURYLGHVWKHFDOFXODWHGFULWLFDOIODZVL]HVWKDW
ZHUHGHWHUPLQHGIRUWKHVXSSRUWVWRGHPRQVWUDWHVWUXFWXUDOVWDELOLW\\EDVHGRQWKHOLQHDUHODVWLFIUDFWXUH
PHFKDQLFVHYDOXDWLRQVDQG6HFWLRQSURYLGHVWKHILQDOFRQFOXVLRQVRIWKHIUDFWXUHPHFKDQLFVHYDOXDWLRQV
$OOFLWHGUHIHUHQFHVDUHSURYLGHGLQ6HFWLRQ
5HYLVLRQRIWKLVUHSRUWDGGUHVVHVFXVWRPHUFRPPHQWV5HYLVLRQFKDQJHVDUHPDUNHGE\\FKDQJHEDUV
$GGLWLRQDOO\\DOOGHVLJQLQSXWWUDQVPLWWDOVDUHRIILFLDO7KHRSHQLWHPLQ5HYLVLRQRIWKLVUHSRUWLVFORVHG


 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ

*(1(5$/0(7+2'2/2*<
7KHJRDORIWKHIUDFWXUHPHFKDQLFVHYDOXDWLRQLVWRGHPRQVWUDWHWKDWEULWWOHIUDFWXUHLVQRWDFRQFHUQIRUWKH
539VWUXFWXUDOVXSSRUWVWHHOVDW6W/XFLH8QLWVDQG LHWKHFDOFXODWHGFULWLFDOIODZVL]HVDUHVXIILFLHQWO\\
ODUJHRUIODZWROHUDQW  EDVHG RQ  \\HDUV  ()3<  RI QHXWURQHPEULWWOHPHQW /LQHDU HODVWLF IUDFWXUH
PHFKDQLFV /()0 ZLOOEHXVHGDVDFRQVHUYDWLYHPHWKRGRORJ\\WRHYDOXDWHWKHVWUXFWXUDOLQWHJULW\\RIWKH
VXSSRUWV7KH /()0 PHWKRGRORJ\\ LV LOOXVWUDWHG LQ D IORZ FKDUW IRUPDW VHH )LJXUH   EDVHG RQ WKH
JXLGDQFHSURYLGHGLQ185(*>@IRUDIUDFWXUHPHFKDQLFVDSSURDFKWRDFFRXQWIRUUDGLDWLRQHIIHFWV
RQ539VXSSRUWVWHHOV7KH/()0PHWKRGRORJ\\LVEULHIO\\GHVFULEHGLQWKHIROORZLQJSDUDJUDSKV
7KH OLPLWLQJ FRPSRQHQW IRU WKH IUDFWXUH PHFKDQLFV DQDO\\VLV LV EDVHG RQ D FRPELQDWLRQ RI FRPSRQHQW
JHRPHWU\\RSHUDWLQJFRQGLWLRQVVWUHVVHVPDWHULDOSURSHUWLHVDQGQHXWURQHPEULWWOHPHQW7KH6W/XFLH
VXSSRUWFRQILJXUDWLRQPDWHULDOVDQGJHRPHWU\\DUHSURYLGHGLQ6HFWLRQRIWKLVUHSRUW7KHFULWLFDOIODZ
VL]HZLOOEHFDOFXODWHGE\\HTXDWLQJWKHPDWHULDOVSHFLILFIUDFWXUHWRXJKQHVVWRWKHDSSOLHGVWUHVVLQWHQVLW\\
IDFWRUVIRUYDULRXVSRVWXODWHGIODZVL]HVLQWKHVXSSRUWFRPSRQHQWVEDVHGRQQRUPDOXSVHWDQGIDXOWHG
FRQGLWLRQV QRWHWKDWWKHWHVWDQGHPHUJHQF\\FRQGLWLRQVDUHQRWLQWKH539VXSSRUWVDQDO\\VLVRIUHFRUGDQG
DUHQRWDQDO\\]HGLQWKLVUHSRUW $OODSSOLFDEOHORDGLQJFRQGLWLRQVVXFKDVGHDGZHLJKWVHLVPLFORVVRI
FRRODQWDFFLGHQWZHOGLQJUHVLGXDOVWUHVVHVDQGWKHUPDOVWUHVVHVDUHFRQVLGHUHGLQWKHDQDO\\VLVDVGHVFULEHG
LQ6HFWLRQRIWKLVUHSRUW>

@DFH
%DVHGRQWKHFRPSRQHQWJHRPHWU\\DQGORDGLQJW\\SHVVWUHVVLQWHQVLW\\IDFWRUVIRUYDULRXVIODZFRQGLWLRQV
ZLOOEHFRQVLGHUHGDVGHVFULEHGLQ6HFWLRQRIWKLVUHSRUW6WUHVVLQWHQVLW\\IDFWRUVEDVHGRQVHPLHOOLSWLFDO
SRVWXODWHGIODZVZLWKYDULRXVDVSHFWUDWLRV $5IODZOHQJWKRYHUIODZGHSWK ZLOOEHFRQVLGHUHGDWWKH539
VXSSRUWFRPSRQHQWVZLWKSODWHOLNHVWUXFWXUHVWKHVH$5ZLOOUDQJHIURPWRLQILQLW\\)RUEROWVWKHVWUHVV
LQWHQVLW\\IDFWRUVZLOOEHEDVHGRQDSRVWXODWHGFRQWLQXRXVFLUFXPIHUHQWLDOIODZDVWUDLJKWIURQWIODZ
DQG D VHPLFLUFXODU IURQW IODZ LQ D EDU PRGHO 7KH VWUHVV LQWHQVLW\\ IDFWRUV DUH WKHQ FRPSDUHG WR WKH
PDWHULDOVSHFLILFIUDFWXUHWRXJKQHVVWRGHWHUPLQHFULWLFDOIODZVL]H
7KHPDWHULDOVSHFLILFIUDFWXUHWRXJKQHVVZLOOEH>













@DFH$GHWDLOHGGHVFULSWLRQRIWKHDOORZDEOHIODZVL]HVLVSURYLGHGLQ6HFWLRQRIWKLVUHSRUW
6HFWLRQDQG6HFWLRQSURYLGHWKHFDOFXODWHGFULWLFDOIODZVL]HVIRUWKH539VWUXFWXUDOVWHHOVXSSRUWVDQG
FRPSDUHWKHPWRWKHDOORZDEOHIODZVL]HVWRGHPRQVWUDWHVWUXFWXUDOVWDELOLW\\EDVHGRQWKHOLQHDUHODVWLF
IUDFWXUHPHFKDQLFVHYDOXDWLRQV

 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ

















































)LJXUH)UDFWXUH0HFKDQLFV$SSURDFK)ORZFKDUW
*HRPHWU\\
x3ODWH
x%DU %ROWV 
3RVWXODWHG)ODZ6L]H
x$VSHFW5DWLR
 6HPL(OOLSWLFDO,QILQLWH
&RQWLQXRXV&LUFXPIHUHQWLDO
6WUHVV,QWHQVLW\\)DFWRU
.,DQG.,, 
7HPSHUDWXUH
x3ODQWVSHFLILFRSHUDWLQJEXON
PDWHULDOWHPSHUDWXUH
0DWHULDO6SHFLILF
)UDFWXUH7RXJKQHVV
&ULWLFDOIODZVL]HLVGHWHUPLQHG
E\\HTXDWLQJVWUHVVLQWHQVLW\\
IDFWRUWRIUDFWXUHWRXJKQHVV
$FFHSWDQFH&ULWHULD
x>





@DFH
&RQWLQXHFXUUHQW$60(
6HFWLRQ;,\\HDULQVSHFWLRQ
,IRQHRIWKHDFFHSWDQFHFULWHULDLVPHW539
VWUXFWXUDOVWHHOVXSSRUWFRPSRQHQWLVIODZ
WROHUDQWIRU()3< FDOHQGDU\\HDUV 
/RDGV6WUHVVHV
x'HDGZHLJKW3UHVVXUH7KHUPDO
6HLVPLF3LSH%UHDN
x/RDGLQJ&RQGLWLRQ1RUPDO
8SVHW)DXOWHG
1HXWURQ(PEULWWOHPHQW
x3ODQWVSHFLILFIUDFWXUHWRXJKQHVV
EDVHGRQHQGRIOLFHQVH()3<
FDOHQGDU\\HDUV 
x,URQGSDWRGHWHUPLQH1'77
SHU)LJXUHRI185(*
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ

6833257&21),*85$7,210$7(5,$/$1'*(20(75<
7KLVVHFWLRQRIWKHUHSRUWGHVFULEHVWKHJHQHUDO6W/XFLH539VXSSRUWFRQILJXUDWLRQPDWHULDOGHVLJQDWLRQ
DQGJHRPHWU\\
7KH6W/XFLH539VXSSRUWVWUXFWXUHFRQVLVWVRIWKUHHORQJVWHHOFROXPQVH[WHQGLQJIHHWGRZQZDUGWR
WKHLQWHULRUFRQFUHWHVWUXFWXUHEHORZWKH5397KHWKUHHFROXPQVVXSSRUWWKUHHUHDFWRUYHVVHOQR))OHVRQH
FROXPQVXSSRUWVWKHYHVVHOXQGHUWKHKRWOHJQR))OHZKLOHWKHRWKHUWZRFROXPQVVXSSRUWWKHYHVVHOXQGHU
WKHWZRFROGOHJQR))OHVRQWKHORRSRSSRVLWHWKHKRWOHJQR))OHVXSSRUWDVVKRZQLQ)LJXUH7KHWRSRI
HDFKORQJFROXPQLVEROWHGWRDKRUL]RQWDOVXSSRUWLQD&#xb3;7VKDSHG'VWUXFWXUHDVVKRZQLQ)LJXUH7KH
KRUL]RQWDOVXSSRUWERWWRPRIWKHFROXPQEDVHSODWHDQGDQFKRUEROWVDWWKHEDVHSODWHDQGKRUL]RQWDO
VXSSRUWDUHVKRZQLQPRUHGHWDLOLQ)LJXUH$FORVHXSYLHZRIWKHKRUL]RQWDOVXSSRUWLVSURYLGHGLQ
)LJXUH7KHKRUL]RQWDOVXSSRUWFRQVLVWVRISODWHVMRLQHGE\\ZHOGVDQGEROWV7KHWRSRIWKHKRUL]RQWDO
VXSSRUW LV EROWHG WR VKRHW\\SH VXSSRUW VWLIIHQHU SODWHV LH WKH UHVWUDLQLQJ EUDFNHW SODWH VKRZQ LQ
)LJXUH ZKLFKUHVWUDLQWKHVRFNHWVOLGHDVVHPEO\\RIWKH539QR))OHVXSSRUW7KHVRFNHWSODWHRIWKH
VRFNHWVOLGHDVVHPEO\\LVEROWHGWRWKHQR))OHVXSSRUWIRRWDQGVLWVRQWKHGRPHVKDSHGVOLGH7KHVOLGHLV
OXEULFDWHGRQERWKVLGHVDQGLVKHOGLQSODFHRQWKHVXSSRUWVWUXFWXUHE\\WZRUHVWUDLQLQJSODWHVDVLOOXVWUDWHG
LQ)LJXUH
7KH539VXSSRUWVDUHGHVLJQHGDQGIDEULFDWHGLQDFFRUGDQFHZLWK6SHFLILFDWLRQ)/2>D@DQG
DGGHQGXP>E@IRU6W/XFLH8QLWDQG6SHFLILFDWLRQ)/2>F@IRU6W/XFLH8QLW7KH
IROORZLQJILYH539VXSSRUWVWHHOFRPSRQHQWVZHUHFRQVLGHUHGIRUWKHFULWLFDOIODZVL]HFDOFXODWLRQVVLQFH
WKHVHORFDWLRQVFRXOGH[SHULHQFHODUJHWHQVLOHVWUHVVHVDQGRUKLJKHPEULWWOHPHQWHIIHFWVWKH'KRUL]RQWDO
SODWHDQG'YHUWLFDOSODWHDWWKHWRSRIWKHKRUL]RQWDOVXSSRUWWKH'KRUL]RQWDOSODWHDWWKHERWWRPRIWKH
KRUL]RQWDOVXSSRUWWKHEROWVZKLFKFRQQHFWWKHFROXPQDQGWKHERWWRPRIWKHKRUL]RQWDOVXSSRUWDQGWKH
EROWVDWWKHVRFNHWVOLGHUHVWUDLQLQJSODWHV1RWHWKDW&#xb3;WRSRIWKHKRUL]RQWDOVXSSRUW'DQG&#xb3;ERWWRPRIWKH
KRUL]RQWDOVXSSRUW'DUHGHILQHGLQ)LJXUH7KHRWKHUFRPSRQHQWVVXFKDVWKHEDVHSODWHDQFKRUEROWV
FROXPQDQGRWKHUZHOGHGSODWHVZLWKLQWKH539VXSSRUWV\\VWHPDUHVXEMHFWWRFRPSUHVVLYHRUORZHUWHQVLOH
VWUHVVDQGORZHULUUDGLDWLRQDQGWKXVZLOOEHERXQGHGE\\WKHUHVXOWVDQGFRQFOXVLRQVIRUWKHILYHDQDO\\]HG
FRPSRQHQWVPHQWLRQHGSUHYLRXVO\\7KHVSHFLILFDWLRQVDOVRVWDWHWKDWWKHZHOGLQJSURFHVVDQGHOHFWURGHV
VKDOOEH$:6ORZK\\GURJHQ&ODVV(IRUPDQXDOVKLHOGHGPHWDODUFZHOGLQJ 60$: RU$:6
);IRUVXEPHUJHGDUFZHOGLQJ 6$: 7KH6W/XFLH8QLWVSHFLILFDWLRQLQFOXGHGWKHRSWLRQIRU$:6
$&ODVV(7RU(7IRUIOX[FRUHGDUFZHOGLQJ )&$: 7KHJHRPHWU\\RILQWHUHVWIRUWKHILYH
FRPSRQHQWVDQGWKHW\\SHRIPDWHULDOSURYLGHGLQWKHIROORZLQJSDUDJUDSKVLVEDVHGRQWKH539VXSSRUW
GUDZLQJV>@
7RSRI+RUL]RQWDO6XSSRUW+/-'+RUL]RQWDO3ODWH )LJXUH 
7KH WRS RI WKH KRUL]RQWDO VXSSRUW FRQVLVWV RI SODWHV RI YDULRXV VL]HV ZHOGHG WRJHWKHU ZLWK EXWW ZHOGV
LQFOXGLQJIXOOSHQHWUDWLRQSDUWLDOSHQHWUDWLRQDQGILOOHWZHOGV>


@DFH
0DWHULDO$670$>@
7KLFNQHVV W  '
:LGWK '

 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
7RSRI+RUL]RQWDO6XSSRUW+/-'9HUWLFDO3ODWH )LJXUH 
7KH WRS RI WKH KRUL]RQWDO VXSSRUW FRQVLVWV RI SODWHV RI YDULRXV VL]HV ZHOGHG WRJHWKHU ZLWK EXWW ZHOGV
LQFOXGLQJIXOOSHQHWUDWLRQSDUWLDOSHQHWUDWLRQDQGILOOHWZHOGV>


@DFH
0DWHULDO$670$&ODVV*UDGH%>@
7KLFNQHVV W  '
:LGWK '
%RWWRPRI+RUL]RQWDO6XSSRUW+/-'+RUL]RQWDO3ODWH )LJXUH 
7KHERWWRPRIWKHKRUL]RQWDOVXSSRUWFRQVLVWVRIYDULRXVVL]HGSODWHVZHOGHGWRJHWKHUZLWKEXWW ZHOGV
LQFOXGLQJIXOOSHQHWUDWLRQSDUWLDOSHQHWUDWLRQDQGILOOHWZHOGV>


@DFH
0DWHULDO$670$>@
7KLFNQHVV W  '
:LGWK '
%ROWV&RQQHFWLQJ&ROXPQDQG%RWWRPRI+RUL]RQWDO6XSSRUW )LJXUH 
7KHUHDUHHLJKWEROWVZKLFKFRQQHFWWKHWRSRIWKHFROXPQWRWKHERWWRPRIWKHKRUL]RQWDOVXSSRUW
0DWHULDO$670$>@
'LDPHWHU '
%ROWVDW6RFNHW6OLGH5HVWUDLQLQJ3ODWHV )LJXUH 
7KHUHDUHHLJKWEROWVWKDWIDVWHQWZRUHVWUDLQLQJSODWHVWRWKHKRUL]RQWDOVXUIDFHRIWKHVRFNHWVOLGHDVVHPEO\\
0DWHULDO1RW6SHFLILHG
'LDPHWHU '
,QDGGLWLRQWRWKHILYHDIRUHPHQWLRQHGFRPSRQHQWVWKHEDVHSODWHDQFKRUEROWVDQGFROXPQVDUHUHYLHZHG
LQ6HFWLRQ7KHFROXPQFRQVLVWVRI$670$SODWHVZLWKWKLFNQHVVUDQJLQJIURP'WR'7KHEDVH
SODWH WKLFNQHVV ' DQGVXUURXQGLQJZHOGHGSODWHQHDUWKHERWWRPRIWKHFROXPQ WKLFNQHVVUDQJHVIURP
'WR' DUH$670$7KHDQFKRUEROWVDWWKHEDVHSODWH GLDPHWHU ' DQGDQFKRUEROWVDWWKH
KRUL]RQWDOVXSSRUW GLDPHWHU ' DUH$670$


 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ




)LJXUH5HDFWRU&RRODQW/RRSV5HDFWRU3UHVVXUH9HVVHODQG/RFDWLRQRI5396XSSRUWV
([FHUSWRI5HIHUHQFHV>J@DQG>K@


+RW/HJ
5396XSSRUW
&ROG/HJ
5396XSSRUWV
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ


)LJXUH6W/XFLH5396XSSRUW$UUDQJHPHQW,OOXVWUDWLRQ


 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ




)LJXUH6W/XFLH5396XSSRUW6\\VWHP
([FHUSWRI5HIHUHQFHV>D@DQG>E@


 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ



)LJXUH&ORVHXS9LHZRI6W/XFLH5396XSSRUW6\\VWHP

DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ




)LJXUH6W/XFLH5396XSSRUW6KRH6RFNHWDQG6OLGHDW1R))OH6XSSRUW
([FHUSWRI5HIHUHQFHV>D@WKURXJK>G@


6RFNHW 6OLGH 1R))OH
6XSSRUW)RRW
([SDQVLRQ
3ODWH
1R))OH
%ROW/RFDWLRQVDW
6RFNHW6OLGH
5HVWUDLQLQJ3ODWHV
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ

/2$',1*&21',7,216$1'675(66$1$/<6,6
7KHFULWLFDOIODZVL]HVDUHGHWHUPLQHGE\\HTXDWLQJWKHDSSOLHGVWUHVVLQWHQVLW\\IDFWRUWRWKHPDWHULDOVSHFLILF
IUDFWXUHWRXJKQHVV7KHVWUHVVLQWHQVLW\\IDFWRULVGHWHUPLQHGIRUWKHYDULRXVORDGLQJFRPELQDWLRQVDSSOLFDEOH
WRWKH6W/XFLH8QLWVDQG539VXSSRUWV7KHGHVLJQEDVLVORDGFRPELQDWLRQVIRUWKH6W/XFLH539
VXSSRUWVDUHEDVHGRQWKHDQDO\\VLVRIUHFRUG>@>@DQGDUHDVIROORZV
>









@DFH
5HSUHVHQWDWLYH VWUHVV FRQWRXU SORWV IRU WKH 6W /XFLH 8QLWV  DQG  539 6XSSRUWV DUH LOOXVWUDWHG LQ
)LJXUHWKURXJK)LJXUHIRUQRUPDOXSVHWDQGIDXOWHGFRQGLWLRQV7KHUH DUH ILYH FRPSRQHQWV
ZLWKLQ WKH 6W /XFLH 8QLWV  DQG  539 VXSSRUW V\\VWHPV WKDW DUH HYDOXDWHG LQ WKLV UHSRUW 7KH ILYH
FRPSRQHQWVDUHWKH'KRUL]RQWDOSODWHDQG'YHUWLFDOSODWHDWWKHWRSRIWKHKRUL]RQWDOVXSSRUWWKH'
KRUL]RQWDOSODWHDWWKHERWWRPRIWKHKRUL]RQWDOVXSSRUWWKHEROWVZKLFKFRQQHFWWKHFROXPQDQGERWWRPRI
WKH KRUL]RQWDO VXSSRUW DQG WKH EROWV DW WKH VRFNHWVOLGH UHVWUDLQLQJ SODWHV 7KHVH VXSSRUW FRPSRQHQWV
UHSUHVHQWWKHORFDWLRQVRIKLJKHVWVWUHVVHVZLWKLQWKH539VXSSRUWV\\VWHPDQGRUDUHORFDWHGQHDUWKH539
DFWLYHFRUHDQGVXEMHFWHGWRKLJKQHXWURQLUUDGLDWLRQ7KHRWKHUFRPSRQHQWVVXFKDVWKHEDVHSODWHDQFKRU
EROWV FROXPQ DQG RWKHU ZHOGHG SODWHV ZLWKLQ WKH 539 VXSSRUW V\\VWHP ZLOO EH ERXQGHG E\\ WKH ILYH
FRPSRQHQWVHYDOXDWHGKHUHLQ WKHRWKHUFRPSRQHQWVDUHGLVFXVVHGLQWKHYDULRXVVXEVHFWLRQVRI6HFWLRQ 
7KH SODQWVSHFLILF QRUPDO XSVHW DQG IDXOWHG ORDGLQJ FRPELQDWLRQ VWUHVVHV XVHG WR HYDOXDWH WKH ILYH
FRPSRQHQWVDUHSURYLGHGLQ7DEOHWKURXJK7DEOH>









@DFH
7KHW\\SLFDOVWUHVVFRPSRQHQWVFRQVLGHUHG>




@DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
>

@DFH7KHVWUHVVLQWHQVLW\\IDFWRU
PHWKRGRORJ\\IRUHDFKRIWKHILYHVXSSRUWFRPSRQHQWVLVGHVFULEHGLQ6HFWLRQRIWKLVUHSRUW
:HOGLQJUHVLGXDOVWUHVV :56 LVDOVRFRQVLGHUHGIRUWKHZHOGHGFRPSRQHQWVZLWKLQWKH539VXSSRUW
VWUXFWXUH%DVHGRQGUDZLQJVIRU6W/XFLH8QLWDQG8QLWWKHZHOGHGFRQQHFWLRQVDUHPDGHZLWKIXOO
SHQHWUDWLRQ SDUWLDO SHQHWUDWLRQ DQG ILOOHW ZHOGV >

























@DFH
7KHIROORZLQJVHFWLRQVLQWKLVUHSRUWSURYLGHWKHVWUHVVDSSOLHGWRHDFKRIWKHILYHFRPSRQHQWVDQGDILJXUH
RIWKHSRVWXODWHGIODZVWKDWDUHDQDO\\]HGWRGHWHUPLQHWKHFULWLFDOIODZVL]HV
x
6HFWLRQ7RSRI+RUL]RQWDO6XSSRUW+/-'+RUL]RQWDO3ODWH
x
6HFWLRQ7RSRI+RUL]RQWDO6XSSRUW+/-'9HUWLFDO3ODWH
x
6HFWLRQ%RWWRPRI+RUL]RQWDO6XSSRUW+/-'+RUL]RQWDO3ODWH
x
6HFWLRQ%ROWV&RQQHFWLQJ&ROXPQDQG%RWWRPRI+RUL]RQWDO6XSSRUW
x
6HFWLRQ%ROWVDW6RFNHW6OLGH5HVWUDLQLQJ3ODWHV
>

@DFH$GLVFXVVLRQRIVWUHVVDVZHOODVIUDFWXUHWRXJKQHVVLVSURYLGHGLQ
WKHYDULRXVVXEVHFWLRQVRI6HFWLRQWRGHWHUPLQHWKDWWKHVHFRPSRQHQWVZLOOEHERXQGHGE\\RUUHSUHVHQWHG
E\\WKHILYHFRPSRQHQWVPHQWLRQHGSUHYLRXVO\\




 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
)LJXUH5HSUHVHQWDWLYH6WUHVV,QWHQVLW\\IRU1RUPDO2SHUDWLQJ&RQGLWLRQV
)LJXUH5HSUHVHQWDWLYH6WUHVV,QWHQVLW\\'HWDLOIRU1RUPDO2SHUDWLQJ&RQGLWLRQV
DFH
DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
)LJXUH5HSUHVHQWDWLYH8SSHU6XSSRUW%RWWRP3ODWH6WUHVV,QWHQVLW\\'HWDLOIRU1RUPDO
2SHUDWLQJ&RQGLWLRQV


)LJXUH5HSUHVHQWDWLYH6WUHVV,QWHQVLW\\IRU8SVHW&RQGLWLRQV
DFH
DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
)LJXUH5HSUHVHQWDWLYH6WUHVV,QWHQVLW\\'HWDLOIRU8SVHW&RQGLWLRQV
)LJXUH5HSUHVHQWDWLYH8SSHU6XSSRUW%RWWRP3ODWH6WUHVV,QWHQVLW\\'HWDLOIRU8SVHW
&RQGLWLRQV
DFH
DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
)LJXUH5HSUHVHQWDWLYH6WUHVV,QWHQVLW\\IRU)DXOWHG&RQGLWLRQV

)LJXUH5HSUHVHQWDWLYH6WUHVV,QWHQVLW\\'HWDLOIRU)DXOWHG&RQGLWLRQV
DFH
DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
)LJXUH5HSUHVHQWDWLYH8SSHU6XSSRUW%RWWRP3ODWH6WUHVV,QWHQVLW\\'HWDLOIRU)DXOWHG
&RQGLWLRQV

)LJXUH5HSUHVHQWDWLYH&ROXPQ0D[LPXP3ULQFLSDO6WUHVVIRU8SVHW&RQGLWLRQV
DFH
DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
)LJXUH5HSUHVHQWDWLYH&ROXPQ0LQLPXP3ULQFLSDO6WUHVVIRU8SVHW&RQGLWLRQV

)LJXUH5HSUHVHQWDWLYH&ROXPQ0D[LPXP3ULQFLSDO6WUHVVIRU)DXOWHG&RQGLWLRQV
DFH
DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
)LJXUH5HSUHVHQWDWLYH&ROXPQ0LQLPXP3ULQFLSDO6WUHVVIRU)DXOWHG&RQGLWLRQV




DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ

7232)+25,=217$/6833257+/-'+25,=217$/3/$7(675(66
7KHDSSOLHGVWUHVVHVRQWKH'KRUL]RQWDOSODWHORFDWHGDWWKHWRSRIWKHKRUL]RQWDOVXSSRUWDUHSURYLGHGLQ
7DEOH  IRU WKH QRUPDO XSVHW DQG IDXOWHG ORDGLQJ FRPELQDWLRQV 7KH DSSOLHG VWUHVVHV DUH EDVHG RQ
>

@DFH:HOGLQJUHVLGXDOVWUHVVLVDGGHGWRWKHRSHUDWLQJVWUHVVIRU
WKHSRVWXODWHGIODZVORFDWHGQHDUWKHZHOGHGSRUWLRQRIWKHKRUL]RQWDOSODWH7KHSRVWXODWHGVHPLHOOLSWLFDO
IODZVZLWKDVSHFWUDWLRV $5IODZOHQJWKRYHUIODZGHSWK RIDQGDVZHOODVDSRVWXODWHGLQILQLWHO\\
ORQJHGJHIODZDUHDQDO\\]HGDVDSDUDPHWULFVWXG\\$UHQGLWLRQRIWKHKRUL]RQWDOSODWHDQGWKHSRVWXODWHG
IODZVLVVKRZQLQ)LJXUH

7DEOH$SSOLHG6WUHVVHVIRU7RSRI+RUL]RQWDO6XSSRUW+/-'+RUL]RQWDO3ODWH



DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ
:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU
5HYLVLRQ

)LJXUH3RVWXODWHG)ODZVLQWKH7RSRI+RUL]RQWDO6XSSRUW+/-'+RUL]RQWDO3ODWH

DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ

7232)+25,=217$/6833257+/-'9(57,&$/3/$7(675(66
7KHDSSOLHGVWUHVVHVRQWKH'YHUWLFDOSODWHORFDWHGDWWKHWRSRIWKHKRUL]RQWDOVXSSRUWDUHSURYLGHGLQ
7DEOH  IRU WKH QRUPDO XSVHW DQG IDXOWHG ORDGLQJ FRPELQDWLRQV 7KH DSSOLHG VWUHVVHV DUH EDVHG RQ
>

@DFH:HOGLQJUHVLGXDOVWUHVVLVDGGHGWRWKHRSHUDWLQJVWUHVVIRU
WKHSRVWXODWHGIODZVORFDWHGQHDUWKHZHOGHGSRUWLRQRIWKHYHUWLFDOSODWH7KHSRVWXODWHGVHPLHOOLSWLFDO
IODZVZLWKDVSHFWUDWLRV $5IODZOHQJWKRYHUIODZGHSWK RIDQGDVZHOODVDSRVWXODWHGLQILQLWHO\\
ORQJHGJHIODZDUHDQDO\\]HGDVDSDUDPHWULFVWXG\\$UHQGLWLRQRIWKHYHUWLFDOSODWHDQGWKHSRVWXODWHGIODZV
LVVKRZQLQ)LJXUH1RWHWKDWWKHGLIIHUHQFHRIVWUHVVWUHQGEHWZHHQ6W/XFLH8QLWDQG8QLWORDG
FRQGLWLRQVLVGXHWRWKH6W/XFLHXQLWVKDYLQJGLIIHUHQWORDGVRXUFHFDOFXODWLRQVGXHWRYDULRXVXSGDWHV
PDGHWRWKHXQLWVRYHUWKH\\HDUV

7DEOH$SSOLHG6WUHVVHVIRU7RSRI+RUL]RQWDO6XSSRUW+/-'9HUWLFDO3ODWH




DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ
:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU
5HYLVLRQ


)LJXUH3RVWXODWHG)ODZVLQWKH7RSRI+RUL]RQWDO6XSSRUW+/-'9HUWLFDO3ODWH


DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ

%277202)+25,=217$/6833257+/-'+25,=217$/3/$7(675(66
7KHDSSOLHGVWUHVVHVRQWKH'KRUL]RQWDOSODWHORFDWHGDWWKHERWWRPRIWKHKRUL]RQWDOVXSSRUWDUHSURYLGHG
LQ7DEOHIRUWKHQRUPDOXSVHWDQGIDXOWHGORDGLQJFRPELQDWLRQV7KHDSSOLHGVWUHVVHVDUHEDVHGRQ
>

@DFH:HOGLQJUHVLGXDOVWUHVVLVDGGHGWRWKHRSHUDWLQJVWUHVVIRU
WKHSRVWXODWHGIODZVORFDWHGQHDUWKHZHOGHGSRUWLRQRIWKHKRUL]RQWDOSODWH7KHSRVWXODWHGVHPLHOOLSWLFDO
IODZVZLWKDVSHFWUDWLRV $5IODZOHQJWKRYHUIODZGHSWK RIDQGDVZHOODVDSRVWXODWHGLQILQLWHO\\
ORQJHGJHIODZDUHDQDO\\]HGDVDSDUDPHWULFVWXG\\$VNHWFKRIWKHKRUL]RQWDOSODWHDQGWKHSRVWXODWHGIODZV
LVVKRZQLQ)LJXUH
,WLVQRWHGWKDWWKHVWUHVVHVIRUWKHQRUPDOFRQGLWLRQH[FHHGWKRVHIRUWKHXSVHWDQGIDXOWHGFRQGLWLRQV7KH
UHDVRQIRUWKLVKDVWRGRZLWKWKHIDFWWKDWWKURXJKRXWWKHGHYHORSPHQWRIWKHFDOFXODWLRQVWKHXSVHWDQG
IDXOWHGFRQGLWLRQPRGHOVZHUHH[WHQVLYHO\\UHILQHGZLWKUHJDUGWRVWUHVVORFDWLRQVGXHWRWKHKLJKVWUHVVHV
LPSRVHGE\\WKHKLJKHUORDGV2QHRIWKHUHILQHPHQWVPDGHZDVDWWKHORFDWLRQRIWKHERWWRPSODWH7KH
ORFDWLRQ RI KLJK VWUHVVLVZKHUHWKH EROWHOHPHQWLVDWWDFKHG WRWKH SODWH HOHPHQW YLD ULJLG OLQNV7KLV
DWWDFKPHQWSRLQWEHWZHHQWKHEROWDQGWKHSODWHUHSUHVHQWVDGLVFRQWLQXLW\\LQWKHPHVKZKHUHH[WUHPHO\\KLJK
VWUHVVHVGHYHORSWKDWDUHQRWUHODWHGWRWKHLQSXWORDGLQJ,QWKHXSVHWDQGIDXOWHGFRQGLWLRQUXQVWKHVWUHVVHV
DWWKLVGLVFRQWLQXLW\\ZHUHVRKLJKWKDWWKHOLQHDUL]DWLRQSDWKWKDWZDVDSSOLHGWRSURGXFHVWUHVVHVZDVPRYHG
WREHYHU\\FORVHWRWKHGLVFRQWLQXRXVORFDWLRQEXWMXVWRXWVLGHRILWVRWKDWDPRUHDFFXUDWHUHSUHVHQWDWLRQ
RIWKHVWUHVVILHOGZDVGHYHORSHGE\\WKHOLQHDUL]DWLRQ
)RUWKHQRUPDORSHUDWLQJFRQGLWLRQWKHVWUHVVHVZHUHJHQHUDOO\\ORZHQRXJKWKDWVXFKUHILQHPHQWZDVQRW
QHFHVVDU\\)RUWKHERWWRPSODWHFDVHLQSDUWLFXODUWKHOLQHDUL]DWLRQSDWKZDVNHSWDWDORFDWLRQWKDWFXWV
GLUHFWO\\WKURXJKWKHGLVFRQWLQXLW\\KHQFHWKHKLJKVWUHVVUHSUHVHQWHGLQWKHUHVXOWV

7DEOH$SSOLHG6WUHVVHVIRU%RWWRPRI+RUL]RQWDO6XSSRUW+/-'+RUL]RQWDO3ODWH












DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ

)LJXUH3RVWXODWHG)ODZVLQWKH%RWWRPRI+RUL]RQWDO6XSSRUW+/-'+RUL]RQWDO3ODWH
DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ

%2/76&211(&7,1*&2/801$1'%277202)+25,=217$/6833257
)25&(6$1'020(176
7KHDSSOLHGIRUFHVDQGPRPHQWVRQWKHEROWVZKLFKFRQQHFWWKHFROXPQWRWKHERWWRPRIWKHKRUL]RQWDO
VXSSRUWDUHSURYLGHGLQ7DEOHIRUQRUPDOXSVHWDQGIDXOWHGORDGLQJFRPELQDWLRQV>




@DFH$VNHWFKRIWKHEROW
DQGWKHSRVWXODWHGIODZVLVVKRZQLQ)LJXUH3UHORDGZDVH[DPLQHGDQGWKHYDOXHVXVHGLQWKHDQDO\\VLV
ZHUHIDUJUHDWHUWKDQDUHDVRQDEOHVQXJILWYDOXHHUJRWKHDQDO\\VLVLVFRQVHUYDWLYH

7DEOH)RUFHVDQG0RPHQWVIRU%ROWV&RQQHFWLQJ&ROXPQDQG%RWWRPRI+RUL]RQWDO6XSSRUW



)LJXUH3RVWXODWHG)ODZVDQG/RDGVLQ%ROWV&RQQHFWLQJ&ROXPQDQG%RWWRPRI
+RUL]RQWDO6XSSRUW

DFH
DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ

%2/76$762&.(76/,'(5(675$,1,1*3/$7(6675(66
7KHDSSOLHGVKHDUVWUHVVRQWKHEROWVORFDWHGDWVRFNHWVOLGHUHVWUDLQLQJSODWHVLVSURYLGHGLQ7DEOHDQG
LVFRQVHUYDWLYHO\\DSSOLHGWRDOOORDGLQJFRPELQDWLRQV>


@DFH$VNHWFKRIWKHEROWDQGWKHSRVWXODWHGIODZVLVVKRZQLQ)LJXUH

7DEOH$SSOLHG6KHDU6WUHVVIRU%ROWVDW6RFNHW6OLGH5HVWUDLQLQJ3ODWHV
6W/XFLH8QLWVDQG






)LJXUH3RVWXODWHG6LQJOH(GJH)ODZDQG6KHDU6WUHVVLQ%ROWVDW6RFNHW6OLGH5HVWUDLQLQJ
3ODWHV


DFH
DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ

)5$&785(0(&+$1,&60(7+2'2/2*<
$V GLVFXVVHG LQ 6HFWLRQ  WKH OLQHDU HODVWLF IUDFWXUH PHFKDQLFV PHWKRGRORJ\\ LV XVHG WR HYDOXDWH WKH
VWUXFWXUDOLQWHJULW\\RIWKH6W/XFLH8QLWVDQG539VWUXFWXUDOVWHHOVXSSRUWV7KHJRDORIWKHHYDOXDWLRQ
LQ WKLV UHSRUW LV WR GHPRQVWUDWH WKDW WKH FDOFXODWHG FULWLFDO IODZ VL]HV EDVHG RQ  \\HDUV RI QHXWURQ
HPEULWWOHPHQWDUHVXIILFLHQWO\\ODUJH LHIODZWROHUDQW DVFRPSDUHGWR>




@DFH$GHWDLOHGGHVFULSWLRQRIWKHDOORZDEOHIODZVL]HV
LVSURYLGHGLQ6HFWLRQ
7KHFULWLFDOIODZVL]HVDUHFDOFXODWHGEDVHGRQHTXDWLQJWKHVWUHVVLQWHQVLW\\IDFWRUWRWKHPDWHULDOVSHFLILF
IUDFWXUHWRXJKQHVVZLWKFRQVLGHUDWLRQRIQHXWURQHPEULWWOHPHQW7KHGLVFXVVLRQIRUVWUHVVLQWHQVLW\\IDFWRU
PHWKRGRORJ\\LVSURYLGHGLQ6HFWLRQZKLOHWKHGHWHUPLQDWLRQRIPDWHULDOVSHFLILFIUDFWXUHWRXJKQHVV
YDOXHVLVGLVFXVVHGLQ6HFWLRQ


)5$&785(728*+1(66'(7(50,1$7,21
7KHFULWLFDOIODZVL]HLVGHWHUPLQHGE\\HTXDWLQJWKHDSSOLHGVWUHVVLQWHQVLW\\IDFWRUWRIUDFWXUHWRXJKQHVV)RU
SUHVVXUHYHVVHOVWHHOVLWZRXOGEHDSSURSULDWHWRXVHWKH.,FRU.,5IUDFWXUHWRXJKQHVVFXUYHVLQ$60(
6HFWLRQ;,>@DQG$60(6HFWLRQ,,,$SSHQGL[*>@UHVSHFWLYHO\\+RZHYHUVRPH6W/XFLH539
VXSSRUWPDWHULDOV KLJKVWUHQJWKEROWVRUFDUERQVWHHOV ZHUHQRWSDUWRIWKHVSHFLILFDWLRQVWKDWZHUHWHVWHG
WRJHQHUDWHWKH$60(6HFWLRQ;,DQG6HFWLRQ,,,FXUYHV LH6$*UDGH%&ODVVDQG6$&ODVV
DQG >





















@DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
>




@DFH

 1HXWURQ(PEULWWOHPHQWDQG1LO'XFWLOLW\\7UDQVLWLRQ7HPSHUDWXUHRI5396XSSRUWV
$ :HVWLQJKRXVH 2ZQHUV *URXS :2*  QRZ NQRZQ DV 3UHVVXUL]HG :DWHU 5HDFWRU 2ZQHUV *URXS
>3:52*@  SURJUDP ZDV SHUIRUPHG LQ :&$3 5HYLVLRQ $ >@ GXULQJ WKH ODWH V DQG
FRPSOHWHG LQ WKH \\HDU  WKDW UHDVVHVVHG WKH DJLQJ HIIHFWV IURP QHXWURQ HPEULWWOHPHQW RQ WKH 539
VXSSRUWVIRUWKHILUVWOLFHQVHUHQHZDOSURJUDP \\HDUV 7KHDVVHVVPHQWLQ:&$3UHIHUHQFHGWKH
H[WHQVLYHLQGXVWU\\UHVHDUFKDQGSODQWVSHFLILFHYDOXDWLRQVSHUIRUPHGLQ185(*185(*&5
DQGWKHUHVROXWLRQRI*6,LQ185(*WRFRQFOXGHWKDWDJLQJPDQDJHPHQWLVQRWDFRQFHUQIRUWKH
539VXSSRUWVIRU\\HDUVRISODQWOLIHRSHUDWLRQ
,QWKHILQDO8615&VDIHW\\HYDOXDWLRQIRU:&$3WKH8615&VWDIIFRQFOXGHG&#xb3;WKHVWDIIFRQVLGHUV
WKDWQHXWURQHPEULWWOHPHQWLVQRWDFRQFHUQIRUWKHVXSSRUWVDQGGRHVQRWZDUUDQWDQDJLQJPDQDJHPHQW
SURJUDP'>@7KHFRQFOXVLRQZDVEDVHGRQDQHYDOXDWLRQWKDWVKRZVWKDWLIDOOWKHVXSSRUWVIDLOHGWKH
VKRUWVSDQRISLSLQJEHWZHHQWKHYHVVHODQGWKHVKLHOGZDOOZRXOGVXSSRUWWKHORDGRIWKHYHVVHO7KLV
HOLPLQDWHGWKHVWDII&#xb6;VFRQFHUQZLWK539VXSSRUWHPEULWWOHPHQW
7KHHPEULWWOHPHQWSUHGLFWLRQPRGHOVGHYHORSHGLQ185(*&5DQGXVHGLQWKHIUDFWXUHPHFKDQLFV
DQDO\\VLVRI7URMDQDQG7XUNH\\3RLQWZHUHGLVFXVVHGLQ6HFWLRQRI185(*7KHPDMRULVVXHRIWKH
HPEULWWOHPHQWFXUYHLQ185(*&5ZDVWKDWRQO\\IDVWQHXWURQIOXHQFH (!0H9 ZDVFRQVLGHUHG
WRFDXVHHPEULWWOHPHQWGDPDJH6HFWLRQVDQGRI185(*FRQFOXGHGWKDWORZHQHUJ\\QHXWURQ
LUUDGLDWLRQ EHORZ0H9 FRXOGSRWHQWLDOO\\PDNHDVLJQLILFDQWFRQWULEXWLRQWRWKHREVHUYHGHPEULWWOHPHQW
7KHUHIRUH WKH JXLGDQFH SURYLGHG LQ WKH 185(* *6, UHVROXWLRQ LV WR XWLOL]H )LJXUH  RI
185(* UHSURGXFHG KHUHLQ DV )LJXUH   WR FDOFXODWH WKH FKDQJH LQ QLOGXFWLOLW\\ WUDQVLWLRQ
WHPSHUDWXUH 1'77 EDVHGRQGSDIRUWKHHQHUJ\\VSHFWUXP(!0H9
>















@DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
>








@DFH
7KHLPSDFWRIQHXWURQHPEULWWOHPHQW UDGLDWLRQHIIHFWV RQWKH6W/XFLH8QLWVDQG539VXSSRUWVZDV
GHWHUPLQHGIRUFDOHQGDU\\HDUV ()3< DQGFDOHQGDU\\HDUV DSSUR[LPDWHO\\()3<IRU6W/XFLH
8QLWDQG()3<IRU6W/XFLH8QLW RIRSHUDWLRQ7KHQHXWURQHPEULWWOHPHQWLVGHILQHGDVDIXQFWLRQ
RILURQGLVSODFHPHQWSHUDWRP GSD FRQVLVWHQWZLWK)LJXUHRI185(* UHSURGXFHGKHUHLQDV
)LJXUH WRGHWHUPLQHFKDQJHLQ1'777KHQHXWURQWUDQVSRUWPHWKRGRORJ\\XVHGWRJHQHUDWHWKHLURQ
GSDGDWDIROORZHGWKHJXLGDQFHRI8615&5HJXODWRU\\*XLGH>@DQGZDVFRQVLVWHQWZLWKWKH86
15&DSSURYHGPHWKRGRORJ\\GHVFULEHGLQ:&$313$>@$OWKRXJKWKLVPHWKRGRORJ\\KDVQRW
EHHQDSSURYHGE\\WKH8615&IRUWKH539VXSSRUWVWKHPHWKRGRORJ\\KDVEHHQJHQHULFDOO\\DSSURYHGIRU
FDOFXODWLRQV RI H[SRVXUH RI WKH 539 EHOWOLQH JHQHUDOO\\ 539 PDWHULDOV RSSRVLWH WKH DFWLYH IXHO 7KH
IROORZLQJSDUDJUDSKVGHVFULEHWKHQHXWURQWUDQVSRUWPHWKRGRORJ\\IRU6W/XFLH8QLWVDQG
>























 
 @DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
>









@DFH
7KHLPSDFWRIQHXWURQHPEULWWOHPHQW UDGLDWLRQHIIHFWV RQWKH539VXSSRUWVGHILQHGDVLURQGSDYDOXHV
IURPDOOHQHUJ\\OHYHOVDUHSURYLGHGLQ7DEOHDQG7DEOHIRU6W/XFLH8QLWVDQGUHVSHFWLYHO\\
7KH6W/XFLH539VXSSRUWVORFDWLRQVRILQWHUHVWVIRUWKHHYDOXDWLRQKHUHLQDUHRQIRXUHOHYDWLRQV
  7RSRIWKHVXSSRUWFROXPQKDVWKHPD[LPXPLURQGSDRIWKHHQWLUHFROXPQ
  7RSRIWKH'SODWHXQGHUQR))OHVXSSRUWIRRW WRSRIWKHVXSSRUWVWUXFWXUH 
  %RWWRPRIWKHKRUL]RQWDOVXSSRUWZKLFKLVWKHVDPHHOHYDWLRQDV  
  6XSSRUWFROXPQERWWRP
7KHLURQGSDYDOXHVLQFOXGHFRQWULEXWLRQVRIQHXWURQVDERYH0H9DVZHOODVQHXWURQVEHORZ0H9
DQGLQFOXGHDELDVRQWKHSHULSKHUDODQGUHHQWUDQWFRUQHUDVVHPEO\\UHODWLYHSRZHUV7KHUHIRUHWKH
IXOOVSHFWUXPGSDYDOXHVDUHFRQVHUYDWLYHO\\XVHGWRGHWHUPLQHWKH1'77LQDFFRUGDQFHZLWK)LJXUH
RI185(*1RWHWKDWDVDVWXG\\RIIUDFWXUHWRXJKQHVVLURQGSDLVLQFUHDVHGE\\WRDFFRXQWIRU
DQDO\\WLFDOXQFHUWDLQWLHVDVVRFLDWHGZLWKWKHPHWKRGRORJ\\XVHGWRFDOFXODWHHPEULWWOHPHQWRIWKH6W/XFLH
539VXSSRUWVWUXFWXUH7KH1'77FDOFXODWHGEDVHGRQWKHXSSHUERXQGFXUYHLQ)LJXUH )LJXUH
RI185(* IRUWKHDIRUHPHQWLRQHGHOHYDWLRQVDUHSURYLGHGLQ7DEOHDQG7DEOHIRUFDOHQGDU
\\HDUV ()3< DQGFDOHQGDU\\HDUV DSSUR[LPDWHO\\()3<IRU6W/XFLH8QLWDQG()3<IRU
6W/XFLH8QLW 

 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ

)LJXUH&KDQJHLQ1LO'XFWLOLW\\7UDQVLWLRQ7HPSHUDWXUH1'77DVD)XQFWLRQRIGSDSHU
)LJXUHRI185(*>@



8SSHU%RXQG
&XUYH
0HGLDQ
&XUYH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ


)LJXUH7RS9LHZRIWKH5HDFWRU*HRPHWU\\DWWKH&RUH0LGSODQH+/-ZLWK7KHUPDO6KLHOG
6W/XFLH8QLW&\\FOHV+/-






DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ



)LJXUH2EOLTXH9LHZRIWKH5HDFWRU*HRPHWU\\+/-ZLWK7KHUPDO6KLHOG
6W/XFLH8QLW&\\FOHV+/-
DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ



)LJXUH7RS9LHZRIWKH5HDFWRU*HRPHWU\\DWWKH&RUH0LGSODQH+/-:LWKRXW7KHUPDO6KLHOG
6W/XFLH8QLW&\\FOH





DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ



)LJXUH2EOLTXH9LHZRIWKH5HDFWRU*HRPHWU\\+/-:LWKRXW7KHUPDO6KLHOG
6W/XFLH8QLW&\\FOHV



DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ



)LJXUH7RS9LHZRI5HDFWRU*HRPHWU\\DWWKH&RUH0LGSODQH+/-6W/XFLH8QLW







DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ



)LJXUH2EOLTXH9LHZRI5HDFWRU*HRPHWU\\+/-6W/XFLH8QLW


DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ

7DEOH6W/XFLH8QLW,URQGSD $OO1HXWURQ(QHUJLHV DWWKH5396XSSRUW6WUXFWXUH+/-
%LDVRQWKH3HULSKHUDODQG5H(QWUDQW&RUQHU$VVHPEO\\5HODWLYH3RZHUV
(OHYDWLRQ D 
FP 
,URQ$WRP'LVSODFHPHQWV+/-$OO1HXWURQ(QHUJLHV GSD  G 
()3< E 
()3<
()3<
()3<
()3<
()3<
()3<
 F 
(
(
(
(
(
(
(

(
(
(
(
(
(
(

(
(
(
(
(
(
(

(
(
(
(
(
(
(

(
(
(
(
(
(
(

(
(
(
(
(
(
(

(
(
(
(
(
(
(

(
(
(
(
(
(
(

(
(
(
(
(
(
(

(
(
(
(
(
(
(

(
(
(
(
(
(
(

(
(
(
(
(
(
(

(
(
(
(
(
(
(

(
(
(
(
(
(
(

(
(
(
(
(
(
(

(
(
(
(
(
(
(

(
(
(
(
(
(
(

(
(
(
(
(
(
(

(
(
(
(
(
(
(

(
(
(
(
(
(
(

(
(
(
(
(
(
(

(
(
(
(
(
(
(

(
(
(
(
(
(
(

(
(
(
(
(
(
(

(
(
(
(
(
(
(

(
(
(
(
(
(
(

(
(
(
(
(
(
(

(
(
(
(
(
(
(

(
(
(
(
(
(
(

(
(
(
(
(
(
(

(
(
(
(
(
(
(

(
(
(
(
(
(
(

(
(
(
(
(
(
(

(
(
(
(
(
(
(

(
(
(
(
(
(
(

(
(
(
(
(
(
(
1RWHV
D  (OHYDWLRQVDUHJLYHQZLWKUHVSHFWWRWKHPLGSODQHRIWKHDFWLYHIXHO
E  9DOXHOLVWHGLVWKHSURMHFWHG()3<DWWKHHQGRI&\\FOH
F  7KLVHOHYDWLRQFRUUHVSRQGVWRWKHWRSRIWKHLQFKWKLFNKRUL]RQWDOSODWHDWWKHWRSFHQWHURIWKH539VXSSRUWVWUXFWXUH
G  /LQHDULQWHUSRODWLRQEHWZHHQWKH()3<YDOXHVOLVWHGLQWKLVWDEOHPD\\EHSHUIRUPHGDVQHFHVVDU\\
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
7DEOH6W/XFLH8QLW,URQGSD $OO1HXWURQ(QHUJLHV DWWKH5396XSSRUW6WUXFWXUH+/-
%LDVRQWKH3HULSKHUDODQG5H(QWUDQW&RUQHU$VVHPEO\\5HODWLYH3RZHUV
(OHYDWLRQ D 
FP 
,URQ$WRP'LVSODFHPHQWV+/-$OO1HXWURQ(QHUJLHV GSD  G 
()3< E 
()3<
()3<
()3<
()3<
()3<
()3<
()3<
 F 
(
(
(
(
(
(
(
(

(
(
(
(
(
(
(
(

(
(
(
(
(
(
(
(

(
(
(
(
(
(
(
(

(
(
(
(
(
(
(
(

(
(
(
(
(
(
(
(

(
(
(
(
(
(
(
(

(
(
(
(
(
(
(
(

(
(
(
(
(
(
(
(

(
(
(
(
(
(
(
(

(
(
(
(
(
(
(
(

(
(
(
(
(
(
(
(

(
(
(
(
(
(
(
(

(
(
(
(
(
(
(
(

(
(
(
(
(
(
(
(

(
(
(
(
(
(
(
(

(
(
(
(
(
(
(
(

(
(
(
(
(
(
(
(

(
(
(
(
(
(
(
(

(
(
(
(
(
(
(
(

(
(
(
(
(
(
(
(

(
(
(
(
(
(
(
(

(
(
(
(
(
(
(
(

(
(
(
(
(
(
(
(

(
(
(
(
(
(
(
(

(
(
(
(
(
(
(
(

(
(
(
(
(
(
(
(

(
(
(
(
(
(
(
(

(
(
(
(
(
(
(
(

(
(
(
(
(
(
(
(

(
(
(
(
(
(
(
(

(
(
(
(
(
(
(
(

(
(
(
(
(
(
(
(

(
(
(
(
(
(
(
(

(
(
(
(
(
(
(
(

(
(
(
(
(
(
(
(
1RWHV
D  (OHYDWLRQVDUHJLYHQZLWKUHVSHFWWRWKHPLGSODQHRIWKHDFWLYHIXHO
E  9DOXHOLVWHGLVWKHSURMHFWHG()3<DWWKHHQGRI&\\FOH
F  7KLVHOHYDWLRQFRUUHVSRQGVWRWKHWRSRIWKHLQFKWKLFNKRUL]RQWDOSODWHDWWKHWRSFHQWHURIWKH539VXSSRUWVWUXFWXUH
G  /LQHDULQWHUSRODWLRQEHWZHHQWKH()3<YDOXHVOLVWHGLQWKLVWDEOHPD\\EHSHUIRUPHGDVQHFHVVDU\\
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
7DEOH,URQ'LVSODFHPHQWSHU$WRPDQG&RUUHVSRQGLQJ1'77IRU6W/XFLH8QLW
,WHP
/RFDWLRQ
()3<
,URQGSD
8SSHU%RXQG&XUYH
1'77 E 

6XSSRUW&ROXPQ+/-0D[LPXP
7DEOH(OHYDWLRQFP 

(

)

&
GSD
(

)

&

(

)

&
GSD
(

)

&

7RSRI'3ODWHXQGHU1R))OH)RRW
7DEOH(OHYDWLRQFP 

(

)

&
GSD
(

)

&

(

)

&
GSD
(

)

&

%RWWRPRI+RUL]RQWDO6XSSRUW
7RSRI&ROXPQ
7DEOH(OHYDWLRQFP 

(

)

&
GSD
(

)

&

(

)

&
GSD
(

)

&

6XSSRUW&ROXPQ%RWWRP
7DEOH(OHYDWLRQFP 
$OO
(
D 
 D 
)
 D 
&
1RWHV
D  7KLVLVWKHLURQGSDDWWKHORZHVWHOHYDWLRQUHSRUWHGLQ7DEOH FPEHORZWRSRIVXSSRUW IHHW 7KHERWWRP
RIWKHVXSSRUWFROXPQLVRYHUIHHWEHORZWKLVUHSRUWHGLURQGSDHOHYDWLRQ IWIURPWKHWRSWRERWWRPRIVXSSRUW>D@ 
7KHWRSRIWKHVXSSRUWFROXPQERWWRPIRRWLVIHHWEHORZWKLVUHSRUWHGLURQGSDHOHYDWLRQ7KHUHIRUHLURQGSDDQGDQ\\
DVVRFLDWHG HPEULWWOHPHQW DW WKHVH ORFDWLRQV LV QHJOLJLEOH (PEULWWOHPHQW QHHG QRW EH FRQVLGHUHG LQ WKH VXSSRUW ERWWRP
FRPSRQHQWV
E  7KHFRQYHUVLRQRIGHOWDWHPSHUDWXUH 7 LQGHJUHHV&HOVLXVWR)DKUHQKHLWLV7) 7&


 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
7DEOH,URQ'LVSODFHPHQWSHU$WRPDQG&RUUHVSRQGLQJ1'77IRU6W/XFLH8QLW
,WHP
/RFDWLRQ
()3<
,URQGSD
8SSHU%RXQG&XUYH
1'77 E 

6XSSRUW&ROXPQ+/-0D[LPXP
7DEOH(OHYDWLRQFP 

(

)

&
GSD
(

)

&

(

)

&
GSD
(

)

&

7RSRI'3ODWHXQGHU1R))OH)RRW
7DEOH(OHYDWLRQFP 

(

)

&
GSD
(

)

&

(

)

&
GSD
(

)

&

%RWWRPRI+RUL]RQWDO6XSSRUW
7RSRI&ROXPQ
7DEOH(OHYDWLRQFP 

(

)

&
GSD
(

)

&

(

)

&
GSD
(

)

&

6XSSRUW&ROXPQ%RWWRP
7DEOH(OHYDWLRQFP 
$OO
(
D 
 D 
)
 D 
&
1RWHV
D  7KLVLVWKHLURQGSDDWWKHORZHVWHOHYDWLRQUHSRUWHGLQ7DEOH FPEHORZWRSRIVXSSRUW IHHW 7KHERWWRP
RIWKHVXSSRUWFROXPQLVRYHUIHHWEHORZWKLVUHSRUWHGLURQGSDHOHYDWLRQ IWIURPWKHWRSWRERWWRPRIVXSSRUW>E@ 
7KHWRSRIWKHVXSSRUWFROXPQERWWRPIRRWLVIHHWEHORZWKLVUHSRUWHGLURQGSDHOHYDWLRQ7KHUHIRUHLURQGSDDQGDQ\\
DVVRFLDWHG HPEULWWOHPHQW DW WKHVH ORFDWLRQV LV QHJOLJLEOH (PEULWWOHPHQW QHHG QRW EH FRQVLGHUHG LQ WKH VXSSRUW ERWWRP
FRPSRQHQWV
E  7KHFRQYHUVLRQRIGHOWDWHPSHUDWXUH 7 LQGHJUHHV&HOVLXVWR)DKUHQKHLWLV7) 7&


 6WUDLQ5DWH(IIHFWV
3HUWKHJXLGDQFHLQ6HFWLRQRI185(*>@VWUDLQUDWHVDVVRFLDWHGZLWKG\\QDPLFORDGLQJIRU
HDUWKTXDNH RU SLSH EUHDN VFHQDULRV VKRXOG EH DGGUHVVHG LH WKH UDWH RI ORDG DSSOLFDWLRQ  3HU
>















@DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
>



















@DFH



)LJXUH>
@DFH

DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
 %XON0DWHULDO7HPSHUDWXUH
7KHEXONPDWHULDOWHPSHUDWXUHRUQRUPDORSHUDWLQJWHPSHUDWXUHRIWKH539VXSSRUWVLVDQLQSXWIRUWKH
IUDFWXUHWRXJKQHVVGHWHUPLQDWLRQ)LJXUHLQWKH6W/XFLH8QLW8)6$5$SSHQGL[+>@SURYLGHVD
WHPSHUDWXUH GLVWULEXWLRQ GXULQJ VWHDG\\VWDWH QRUPDO RSHUDWLQJ FRQGLWLRQV IRU WKH KRW OHJ VXSSRUW 7KH
WHPSHUDWXUHGLVWULEXWLRQGXULQJVWHDG\\VWDWHQRUPDORSHUDWLQJFRQGLWLRQVIRUWKHFROGOHJ539VXSSRUWVLV
QRWDYDLODEOH$VLOOXVWUDWHGLQ)LJXUHWKHKRWOHJUHDFWRUVXSSRUWIRRWORFDWLRQLV)>





@DFH)UDFWXUHWRXJKQHVVLVGHWHUPLQHGIRUERWKWKH
KRWDQGFROGOHJVXSSRUWQRUPDORSHUDWLQJWHPSHUDWXUHVDQGUHSRUWHGLQ7DEOHIRU6W/XFLH8QLW7KH
OLPLWLQJ FROG OHJ 539 VXSSRUW IUDFWXUH WRXJKQHVV LV FRQVHUYDWLYHO\\ XVHG IRU WKH DOORZDEOH IODZ VL]H
HYDOXDWLRQ
7KHUHLVQRDYDLODEOHWKHUPDODQDO\\VLVRIWKHQRUPDORSHUDWLQJFRQGLWLRQVIRUWKH6W/XFLH8QLW539
VXSSRUWV>







@DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ

)LJXUH6W/XFLH8QLW5396XSSRUW1RUPDO2SHUDWLRQ7HPSHUDWXUH>@

 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
,QLWLDO1LO'XFWLOLW\\7UDQVLWLRQ7HPSHUDWXUH
6W/XFLH8QLW539VXSSRUWVDUHGHWDLOHGIDEULFDWHGDQGGHOLYHUHGSHU6SHFLILFDWLRQ)/2>D@
DQGLWVDGGHQGXP>E@DQG8QLWSHU6SHFLILFDWLRQ)/2>F@7KHVSHFLILFDWLRQVVWDWHWKDW
XQOHVVRWKHUZLVHVSHFLILHGRQWKHGUDZLQJVVWUXFWXUDVWHHOVKDOOEHLQDFFRUGDQFHZLWK$6706SHFLILFDWLRQ
$+RZHYHUWKH539VXSSRUWVGUDZLQJV6KHHWRI>D@DQG6KHHWRI>E@VSHFLI\\WKDWVWHHOVKDOO
EH$670$ XQOHVV RWKHUZLVH QRWHG 7KHUHIRUH WKH$670$ PDWHULDO LV QRW DSSOLFDEOH WR WKH
6W/XFLH8QLWVDQG539VXSSRUWVIUDFWXUHPHFKDQLFVHYDOXDWLRQKHUHLQ)RUERWKXQLWVVRPHFRPSRQHQW
SLHFHVDUHZHOGHGSODWH$670$&ODVV*UDGH%SHUGUDZLQJV>D@DQG>E@
>













@DFH

7DEOH>
@DFH


DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
 6W/XFLH&0755HYLHZ
1R&075VZLWK>
@DFHIRUWKHVWUXFWXUDOO\\VLJQLILFDQWVXSSRUWVWHHOVZHUHREWDLQHGIRU6W/XFLH
8QLW>

@DFH7KHDYDLODEOH6W/XFLH8QLW&075VKDYHEHHQUHYLHZHGDQGDUHVXPPDUL]HGLQWKLVVHFWLRQ
:HOG
7KHDYDLODEOH6W/XFLH8QLWZHOG&075VKHHWVZHUHUHYLHZHGZLWKWKH>



@DFH

7DEOH>
@DFH

$670$6WHHO3ODWHV
7KH$670$&075VIRU6W/XFLH8QLWZHUHUHYLHZHGZLWKWKH>






@DFH


DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
7DEOH>
@DFH


$670$%6WHHO3ODWHV
7KH$670$&075VIRU6W/XFLH8QLWZHUHUHYLHZHGZLWKWKH>





@DFH

7DEOH>
@DFH



DFH
DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
 (VWLPDWLRQRI8QLUUDGLDWHG)UDFWXUH7RXJKQHVV
>







@DFH

7DEOH>

@DFH



DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ


)LJXUH>
@DFH



DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
 ([DPSOHRI)UDFWXUH7RXJKQHVV'HWHUPLQDWLRQE\\&XUYH6KLIW$670$IRU
6W/XFLH8QLW
7KHGHWHUPLQDWLRQRIIUDFWXUHWRXJKQHVVLVGHVFULEHGLQGHWDLOLQWKLVVHFWLRQIRUWKH6W/XFLH8QLW$670
$ PDWHULDO >














@DFH
7KHIUDFWXUHWRXJKQHVVYDOXHVIRUDOO6W/XFLH8QLWVXSSRUWVWHHOVLQFOXGLQJ$670$DQGZHOG
PDWHULDOLVSURYLGHGLQ7DEOH


 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ

)LJXUH$670$7KLQ3ODWHV)UDFWXUH7RXJKQHVV+/-+LJKHVW)OXHQFHDW()3<

)LJXUH$670$7KLQ3ODWH)UDFWXUH7RXJKQHVV+/-7RSRI+RUL]RQWDO6XSSRUW)OXHQFHDW
()3<
DFH
DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
 $670$ &ROXPQDQG+RUL]RQWDO6XSSRUW&RPSRQHQWVIRU6W/XFLH8QLW 
7KHFROXPQVDQGKRUL]RQWDOVXSSRUWLQWKH539VXSSRUWV\\VWHPDUHODUJHO\\PDGHRI$670$SODWHV
SHUWKHVSHFLILFDWLRQ>D@DQGGUDZLQJ>D@>






 









@DFH
7KHIUDFWXUHWRXJKQHVVYDOXHVIRUDOO6W/XFLH8QLWVXSSRUWVWHHOV LQFOXGLQJ$670$PDWHULDO
ZKLFKLVGHVFULEHGLQ6HFWLRQ DQGZHOGPDWHULDODUHSURYLGHGLQ7DEOH

 $670$% 6W/XFLH8QLW 
>





@DFH
7KHIUDFWXUHWRXJKQHVVYDOXHVIRUDOO6W/XFLH8QLWVXSSRUWVWHHOVLQFOXGLQJ$670$PDWHULDO
ZKLFKLVGHVFULEHGLQ6HFWLRQ DQGZHOGPDWHULDODUHSURYLGHGLQ7DEOH

 $670$ %ROWVIRU6W/XFLH8QLWVDQG 
7KHEROWVDWWKHWRSRIWKHFROXPQVRIWKH539VXSSRUWV\\VWHPVDUHPDGHRI$PDWHULDO7KHGLDPHWHU
RIWKH6W/XFLHEROWVLV'>








@DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
>






@DFH
7KHIUDFWXUHWRXJKQHVVYDOXHVIRUWKH6W/XFLH8QLWVDQGEROWPDWHULDO $670$ DUHSURYLGHGLQ
7DEOHDQG7DEOH

 )UDFWXUH7RXJKQHVV5HVXOWV
7KHDGMXVWHGUHIHUHQFHWHPSHUDWXUHDQGDSSOLFDEOHIUDFWXUHWRXJKQHVVRIWKH539VXSSRUWVDW6W/XFLH
8QLWVDQGDUHVKRZQLQ7DEOHDQG7DEOHUHVSHFWLYHO\\XVLQJWKHPHWKRGRORJ\\DQGLQSXWV
GLVFXVVHGLQ6HFWLRQWKURXJK6HFWLRQ
7KHLURQGSDYDOXHVIURP6HFWLRQDUHXVHGWRGHWHUPLQHWKHHPEULWWOHGIUDFWXUHWRXJKQHVV7KH1'77
LVEDVHGRQ)LJXUHRI185(*XVLQJWKHFRQVHUYDWLYHO\\ELDVHGIXOOVSHFWUXPIOXHQFHHPEULWWOHPHQW
HIIHFWVUHVXOWLQJIURPFDOHQGDU\\HDUVFDOHQGDU\\HDUVGSD()3<V FDOHQGDU\\HDUV DQG
()3<GSDRIUDGLDWLRQ7KHLQLURQGSDDFFRXQWVIRUDQDO\\WLFDOXQFHUWDLQWLHVDVVRFLDWHGZLWK
WKHPHWKRGRORJ\\XVHGWRFDOFXODWHHPEULWWOHPHQWRIWKH6W/XFLH539VXSSRUWVWUXFWXUH%RXQGLQJLQLWLDO
UHIHUHQFHWHPSHUDWXUHVDUHXVHGZLWKDGMXVWPHQWIRUG\\QDPLFHIIHFWVRQIUDFWXUHWRXJKQHVV


 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
7DEOH)UDFWXUH7RXJKQHVVIRU6W/XFLH8QLW0DWHULDO&RPSRQHQWV


DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
7DEOH)UDFWXUH7RXJKQHVVIRU6W/XFLH8QLW0DWHULDO&RPSRQHQWV
DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ

675(66,17(16,7<)$&7256$1'32678/$7(')/$:6
$ZLGHUDQJHRIVWUHVVLQWHQVLW\\IDFWRUPHWKRGRORJLHVZHUHFRQVLGHUHGLQWKHDQDO\\VLVRIOLQHDUHODVWLF
IUDFWXUHPHFKDQLFVWRDFFRXQWIRUWKHVXSSRUWJHRPHWU\\ EROWDQGIODWSODWHPRGHOV DQGIRUIODZVKDSHV
LQILQLWHO\\ORQJHGJHIODZVDQGVHPLHOOLSWLFDOIODZV 7KHSUHYDOHQWFUDFNRSHQLQJVWUHVVFRPSRQHQWVDUH
WKHVWUHVVHVQRUPDOWRWKHFUDFNIDFHKRZHYHUVKHDUVWUHVVHVDUHDOVRSUHVHQWLQWKHVXSSRUWV>


@DFH
DUHWKHQXVHGWRFDOFXODWHWKH0RGH,VWUHVVLQWHQVLW\\IDFWRUVZKLFKFDQEHHTXDWHGWRWKHIUDFWXUHWRXJKQHVV
RIWKHPDWHULDOWREDFNFDOFXODWHWKHFULWLFDOIODZVL]HV GLVFXVVHGLQ6HFWLRQ 6WUHVVLQWHQVLW\\IDFWRUVIRU
0RGH,,FUDFNRSHQLQJDOVRGHQRWHGDV.,,DUHFRQVLGHUHGIRUWKHEROWVORFDWHGDWWKHVRFNHWVOLGHUHVWUDLQLQJ
SODWHVZKHUHWKHPDLQORDGLVEDVHGRQVKHDUVWUHVV$JHQHUDOGHVFULSWLRQRIWKHVWUHVVLQWHQVLW\\IDFWRU
PHWKRGRORJLHVLVSURYLGHGLQ7DEOHIRUHDFKRIWKHILYH539VXSSRUWFRPSRQHQWVDQGWKHIROORZLQJ
VHFWLRQVSURYLGHPRUHGHWDLOIRUHDFKVWUHVVLQWHQVLW\\IDFWRUFRUUHODWLRQ
7KHFUDFNWLSVWUHVVLQWHQVLW\\IDFWRUVDUHGHWHUPLQHGEDVHGRQWKHVWUHVVLQWHQVLW\\IDFWRUH[SUHVVLRQVIURP
$3,  (GLWLRQ >@ DQG7DGD >@7KH VWUHVV LQWHQVLW\\ IDFWRU GDWDEDVHV DUH LQGXVWU\\ DFFHSWHG
VROXWLRQVDQGKDYHEHHQXVHGIUHTXHQWO\\IRUSUHYLRXVIUDFWXUHPHFKDQLFVSURMHFWV>


@DFH
$ YDULHW\\ RI IODZ VKDSHV DUH FRQVLGHUHG LQ WKH IUDFWXUH PHFKDQLFV DQDO\\VLV EDVHG RQ WKH SUHYLRXVO\\
PHQWLRQHGVWUHVVLQWHQVLW\\IDFWRUGDWDEDVHVWRSURYLGHDSDUDPHWULFVWXG\\RIFULWLFDOIODZVL]HVZLWKLQHDFK
RIWKH539VXSSRUWFRPSRQHQWV7KHIODZVKDSHVZKLFKDUHDSSURSULDWHIRUWKHYDULRXVVXSSRUWJHRPHWU\\
EROWDQGIODWSODWHPRGHOV DUHGHVFULEHGLQ7DEOH7KHVHIODZVKDSHVLQFOXGHLQILQLWHO\\ORQJHGJH
IODZVLQSODWHVDQGVHPLHOOLSWLFDOIODZVZLWKDVSHFWUDWLRV $5IODZOHQJWKIODZGHSWK RIDQGDV
GLVFXVVHGLQ6HFWLRQ1RWHWKDWWKHZHOGHGSODWHFRPSRQHQWVDUHVXEMHFWHGWRZHOGLQJUHVLGXDOVWUHVV
DVGHVFULEHGLQ6HFWLRQ7KHEDUVKDSHGFRPSRQHQWVDUHDQDO\\]HGZLWKFRQWLQXRXVFLUFXPIHUHQWLDO
VWUDLJKWIURQWDQGVHPLFLUFXODUIURQWIODZVKDSHVDVGLVFXVVHGLQ6HFWLRQ

 3ODWH0RGHO
7KHZHOGHGSODWHVZLWKLQWKH539KRUL]RQWDOVXSSRUWDUHPRGHOHGDVDIODWSODWH7KHILUVWSRVWXODWHGIODZ
FDVHLQWKHIODWSODWHPRGHOLVDVHPLHOOLSWLFDOIODZZLWKDVSHFWUDWLRV IODZOHQJWKIODZGHSWK RIDQG
DVDSDUDPHWULFVWXG\\RIFULWLFDOIODZVL]HV$JUDSKLFDOUHSUHVHQWDWLRQRIDVHPLHOOLSWLFDOIODZLQDSODWH
PRGHOLVSURYLGHGLQ)LJXUHD7KHVWUHVVLQWHQVLW\\IDFWRULVFDOFXODWHGDWWKHVXUIDFHSRLQW  VHH
)LJXUHD DQGWKHGHHSHVWSRLQW   DORQJWKHSRVWXODWHGFUDFNIURQWDQGWKHOLPLWLQJFULWLFDOIODZ
VL]HV DUH UHSRUWHG LQ 6HFWLRQ  7KH VWUHVV SURYLGHG LQ 6HFWLRQ  6HFWLRQ  DQG 6HFWLRQ  LV
FRQVHUYDWLYHO\\DSSOLHGDVFRQVWDQWWKURXJKWKHZDOOWKLFNQHVV LHDVDSXUHPHPEUDQHVWUHVV 7KHVHPL
HOOLSWLFDOIODZVLQFOXGHGZHOGLQJUHVLGXDOVWUHVVVLQFHWKHIODZVDUHSRVWXODWHGQHDUWKHZHOGVRIWKHSODWH
FRPSRQHQWV7KHVWUHVVLQWHQVLW\\IDFWRUFRUUHODWLRQIRUWKHVHPLHOOLSWLFDOIODZZLWKSXUHPHPEUDQHVWUHVV
LVSURYLGHGLQ$3,>@6HFWLRQ%DVIROORZV

 

 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
:KHUH
., VWUHVVLQWHQVLW\\IDFWRU NVLLQ 
0P IDFWRUWRDFFRXQWIRUIODZVL]HDVSHFWUDWLRDQGJHRPHWU\\
P PHPEUDQHVWUHVV NVL 
D IODZGHSWKRUVL]H LQ 
4  DF IRUDF
F KDOIIODZOHQJWK LQ 

7KHZHOGHGSODWHFRPSRQHQWVDOVRFRQVLGHUHGDQLQILQLWHO\\ORQJHGJHIODZ$JUDSKLFDOUHSUHVHQWDWLRQRIDQ
LQILQLWHO\\ORQJHGJHIODZLQDSODWHPRGHOLVSURYLGHGLQ)LJXUHE7KHVWUHVVSURYLGHGLQ6HFWLRQ
6HFWLRQDQG6HFWLRQLVFRQVHUYDWLYHO\\DSSOLHGDVFRQVWDQWWKURXJKWKHZDOOWKLFNQHVV LHDVDSXUH
PHPEUDQH VWUHVV 7KH LQILQLWHO\\ ORQJ HGJH IODZV LQFOXGHG ZHOGLQJ UHVLGXDO VWUHVV VLQFH WKH IODZV DUH
SRVWXODWHGQHDUWKHZHOGVRIWKHSODWHFRPSRQHQWV7KHVWUHVVLQWHQVLW\\IDFWRUIRUWKHLQILQLWHO\\ORQJHGJH
IODZLQDSODWHZLWKSXUHPHPEUDQHVWUHVVLVSURYLGHGLQ$3,>@6HFWLRQ%DVIROORZV
 

:KHUH
., VWUHVVLQWHQVLW\\IDFWRU NVLLQ 
*R LQIOXHQFHFRHIILFLHQWWRDFFRXQWIRUIODZVL]HDQGJHRPHWU\\
R PHPEUDQHVWUHVV NVL 
D IODZGHSWKRUVL]H LQ 


)LJXUH3RVWXODWHG6XUIDFH)ODZVLQD3ODWH0RGHO
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
 5RXQG%DU0RGHO IRU%ROWV 
7KHEROWVZKLFKFRQQHFWWKHFROXPQWRWKHERWWRPRIWKHKRUL]RQWDOVXSSRUWZHUHFRQVHUYDWLYHO\\DVVXPHG
WRKDYHFRPSOHWHO\\FLUFXPIHUHQWLDOIODZVRULHQWHGSHUSHQGLFXODUWRWKHEROWFHQWHUOLQHVDQGWKHUHIRUH
UHVSRQVLYH WR EROW WHQVLOH ORDGLQJ,Q DGGLWLRQ WKH VWUDLJKW IURQW DQG VHPLFLUFXODU FUDFN PRGHOV DUH
SRVWXODWHGDVDSDUDPHWULFVWXG\\DQGIRUOHVVOLPLWLQJFULWLFDOIODZVL]HUHVXOWV$JUDSKLFDOUHSUHVHQWDWLRQRI
WKHWKUHHIODZW\\SHVLQDEDUPRGHOLVSURYLGHGLQ)LJXUH7KHD[LDOIRUFHVKHDUVWUHVVDQGPRPHQWV
RQWKHEDUFRPSRQHQWVDUHSURYLGHGLQ6HFWLRQ7KHVWUHVVLQWHQVLW\\IDFWRUIRUWKHEROWVLVEDVHGRQ
$3,>@6HFWLRQV%%DQG%IRUURXQGEDUVXUIDFHFLUFXPIHUHQWLDOFUDFN+/-
VWUDLJKW IURQW FUDFN DQG VHPLFLUFXODU IURQW FUDFN UHVSHFWLYHO\\ ZLWKWKURXJKZDOOPHPEUDQH VWUHVV DV
IROORZV

:KHUH
., VWUHVVLQWHQVLW\\IDFWRU NVLLQ 
0P LQIOXHQFHIDFWRUWRDFFRXQWIRUIODZVL]HDQGJHRPHWU\\
P PHPEUDQHVWUHVV NVL 
D IODZGHSWKRUVL]H LQ 

7KHEROWVORFDWHGDWWKHVRFNHWVOLGHUHVWUDLQLQJSODWHVDUHVXEMHFWHGWRVKHDUVWUHVVZKLFKFDXVHV0RGH,,
DQG0RGH,,,VWUHVVLQWHQVLW\\IDFWRUV VHH)LJXUHIRUDJUDSKLFDOUHSUHVHQWDWLRQRIDVLQJOHHGJHIODZLQ
DSODWHPRGHO 7KH0RGH,,DQG0RGH,,,VWUHVVLQWHQVLW\\IDFWRUVIRUDVLQJOHHGJHFUDFNLQWKHEROWDUH
SURYLGHGEDVHGRQ6HFWLRQRI7DGD>@DVIROORZV


:KHUH
.,,DQG.,,, 0RGH,,DQG0RGH,,,VWUHVVLQWHQVLW\\IDFWRUV NVLLQ 
),, DE DQG),,, DE  LQIOXHQFHFRHIILFLHQWWRDFFRXQWIRUIODZVL]H D DQGJHRPHWU\\ WKLFNQHVV 
DQGO VKHDUVWUHVV NVL 
D IODZGHSWKRUVL]H LQ 
E WKLFNQHVVRIFRPSRQHQW LQ 
$UHYLHZRI0RGH,,DQG0RGH,,,LQIOXHQFHFRHIILFLHQWVGHWHUPLQHGWKDW),, DE ZLOOSURYLGHDPRUHOLPLWLQJ
FULWLFDOIODZVL]HWKXVFULWLFDOIODZVL]HLVRQO\\FDOFXODWHGDQGUHSRUWHGEDVHGRQWKH0RGH,,VWUHVVLQWHQVLW\\
IDFWRU7KH0RGH,,VWUHVVLQWHQVLW\\IDFWRULVEDVHGRQD>






@DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ

D &deg;&RQWLQXRXV6XUIDFH)ODZ


E 6WUDLJKW)URQWDQG6HPL&LUFXODU6XUIDFH&UDFN

)LJXUH3RVWXODWHG)ODZVLQD5RXQG%DU0RGHO



)LJXUH3RVWXODWHG6LQJOH(GJH)ODZZLWK6KHDU6WUHVVLQD3ODWH0RGHO
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
7DEOH0RGH,DQG,,6WUHVV,QWHQVLW\\)DFWRU0RGHO'HVFULSWLRQ
&RPSRQHQW
0RGHO6KDSH
)ODZ
&RQILJXUDWLRQ
6WUHVV,QWHQVLW\\)DFWRU
5HIHUHQFHDQG6HFWLRQ1R
)LJXUHRI3RVWXODWHG
)ODZ6KDSH
$OO:HOGHG3ODWHV
3ODWH D 
0RGH,6WUHVV
,QWHQVLW\\)DFWRU
6HPL(OOLSWLFDO
$3,6HFWLRQ%>@
)LJXUHD
,QILQLWH
$3,6HFWLRQ%>@
)LJXUHE
%ROWV&RQQHFWLQJ&ROXPQDQG
%RWWRPRI+RUL]RQWDO6XSSRUW
%DU
0RGH,6WUHVV
,QWHQVLW\\)DFWRU
&RQWLQXRXV
&LUFXPIHUHQWLDO
$3,6HFWLRQ%>@
)LJXUH
6WUDLJKW)URQW
$3,6HFWLRQ%>@
6HPL&LUFXODU)URQW
$3,6HFWLRQ%>@
%ROWVDW6RFNHW6OLGH$VVHPEO\\
5HFWDQJXODU%DU E 
0RGH,,6WUHVV
,QWHQVLW\\)DFWRU
6LQJOH(GJH&UDFN
7DGD3DUW6HFWLRQ$>@
)LJXUH
1RWHV






DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ

$//2:$%/()/$:6,=(6
7KHJRDORIWKHIUDFWXUHPHFKDQLFVDQDO\\VLVLVWRGHPRQVWUDWHWKDWWKHFDOFXODWHGFULWLFDOIODZVL]HVEDVHG
RQ\\HDUVRIQHXWURQHPEULWWOHPHQWDUHVXIILFLHQWO\\ODUJHDVFRPSDUHGWR>






































@DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
>





















@DFH
7KHDOORZDEOHIODZVL]HVLQ7DEOHDUHFRPSDUHGDJDLQVWWKHFDOFXODWHGFULWLFDOIODZVL]HVLQ6HFWLRQWR
GHPRQVWUDWHWKDWWKH6W/XFLH8QLWVDQG539VXSSRUWVDUHIODZWROHUDQWIRU\\HDUVRIVHUYLFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
7DEOH$OORZDEOH)ODZ6L]HV



DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
7DEOH&RQWLQXHG$OORZDEOH)ODZ6L]HV

DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
7DEOH&RQWLQXHG$OORZDEOH)ODZ6L]HV






DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ

&5,7,&$/)/$:6,=(&$/&8/$7,215(68/76
$VGLVFXVVHGLQVHYHUDOSUHYLRXVVHFWLRQVRIWKLVUHSRUWWKHJRDORIWKHIUDFWXUHPHFKDQLFVDQDO\\VLVIRU
6W/XFLH8QLWVDQG539VXSSRUWVLVWRMXVWLI\\WKDWSODQWOLIHH[WHQVLRQWR\\HDUVGRHVQRWFDXVHD
VWUXFWXUDOLQWHJULW\\FRQFHUQEDVHGRQUDGLDWLRQHPEULWWOHPHQW2QHWHFKQLTXHXVHGWRGHPRQVWUDWHFRQWLQXHG
RSHUDELOLW\\RIWKH539VXSSRUWVSDVW\\HDUVLVWRFRPSDUHWKHFULWLFDOIODZVL]HVFDOFXODWHGLQWKHDQDO\\VLV
KHUHLQWR>









 @DFH 7KHVH SUHYLRXVO\\ PHQWLRQHG
DOORZDEOHIODZVL]HVDUHGHVFULEHGLQGHWDLOLQ6HFWLRQRIWKLVUHSRUW
3HU6HFWLRQRI185(*WKHVXSSRUWVZRXOGGHPRQVWUDWHVDIHRSHUDWLRQZLWKFRQVLGHUDWLRQRI
QHXWURQUDGLDWLRQHPEULWWOHPHQWLIWKHIROORZLQJFULWHULDDUHPHW
 7KHLQLWLDOQLOGXFWLOLW\\WUDQVLWLRQWHPSHUDWXUHRIWKH539VXSSRUWVLVZHOOEHORZWKHPLQLPXP
RSHUDWLQJWHPSHUDWXUH
 7KHUDGLDWLRQH[SRVXUHDWWKHVXSSRUWVLVORZ
 7KHSHDNWHQVLOHVWUHVVHVDUHNVLRUOHVV
+RZHYHUDVVKRZQLQ6HFWLRQ>



@DFH7KXVDIUDFWXUHPHFKDQLFVHYDOXDWLRQLVFRPSOHWHGIRUWKH'KRUL]RQWDOSODWH
DQG 'YHUWLFDO SODWH DW WKH WRSRIWKH KRUL]RQWDO VXSSRUW WKH 'KRUL]RQWDO SODWHDWWKHERWWRP RI WKH
KRUL]RQWDOVXSSRUWWKHEROWVZKLFKFRQQHFWWKHFROXPQDQGERWWRPRIWKHKRUL]RQWDOVXSSRUWDQGWKHEROWV
DWWKHVRFNHWVOLGHUHVWUDLQLQJSODWHV7KHRWKHUFRPSRQHQWVVXFKDVWKHEDVHSODWHDQFKRUEROWVFROXPQ
DQGRWKHUZHOGHGSODWHVZLWKLQWKH539VXSSRUWV\\VWHPZLOOEHERXQGHGE\\RUDUHUHSUHVHQWHGE\\WKHILYH
FRPSRQHQWVPHQWLRQHGSUHYLRXVO\\ WKHVHRWKHUFRPSRQHQWVDUHGLVFXVVHGLQWKHYDULRXVVXEVHFWLRQVRI
6HFWLRQ 
7KLVVHFWLRQSURYLGHVWKHFULWLFDOIODZVL]HVIRUHDFKRIWKHILYHFRPSRQHQWVEDVHGRQWKHODWHVWSODQWVSHFLILF
VWUHVVHVZHOGLQJUHVLGXDOVWUHVVRSHUDWLQJFRQGLWLRQWHPSHUDWXUHVQHXWURQHPEULWWOHPHQWIRUFDOHQGDU
\\HDUV ()3< DQG\\HDUV DSSUR[LPDWHO\\()3<IRU6W/XFLH8QLWDQG()3<IRU6W/XFLH
8QLW VKLIWLQ1'77EDVHGRQ)LJXUHRI185(* UHSURGXFHGDV)LJXUHKHUHLQ DQGWKH
ODWHVWVWUHVVLQWHQVLW\\IDFWRUVXVHGLQWKHLQGXVWU\\>





@DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
>


@DFH7KH1'77
EDVHGRQWKHQHXWURQHPEULWWOHPHQWDWDQG\\HDUVLVFDOFXODWHGLQ7DEOHDQG7DEOHIRUYDULRXV
ORFDWLRQVDURXQGWKH6W/XFLH539VXSSRUWV7KH1'77IRUHDFKFRPSRQHQWLVFRQVHUYDWLYHEDVHGRQD
UHSUHVHQWDWLYHORFDWLRQWRDFFRXQWIRUHPEULWWOHPHQWHIIHFWV
,WVKRXOGEHQRWHGWKDWWKH539VXSSRUWVH[SHULHQFHYDULRXVORDGLQJFRQGLWLRQV QRUPDOXSVHWDQGIDXOWHG 
DVGLVFXVVHGLQ6HFWLRQ>







































@DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
> 














@DFH
(YHQZLWKWKHSUHYLRXVO\\PHQWLRQHGFRQVHUYDWLVPVPDQ\\FRPSRQHQWVLQWKHIUDFWXUHPHFKDQLFVDQDO\\VLV
KDYHODUJHPDUJLQEHWZHHQWKHDOORZDEOHIODZVL]HDQGWKHFULWLFDOIODZVL]HDVGLVFXVVHGLQ6HFWLRQ
WKURXJK6HFWLRQ

 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ

7232)+25,=217$/6833257+/-'+25,=217$/3/$7(
7KH'KRUL]RQWDOSODWH $670$ DWWKHWRSRIWKHKRUL]RQWDOVXSSRUWDQGWKHDVVRFLDWHGZHOGVDUH
VXEMHFWHGWRPRGHUDWHHPEULWWOHPHQWUHVXOWLQJLQWKHPLQLPXPIUDFWXUHWRXJKQHVVYDOXHVDVVKRZQEHORZ
VHH7DEOHDQG7DEOH 1RWHWKDWDVDVWXG\\RIIUDFWXUHWRXJKQHVVLURQGSDLVLQFUHDVHGE\\
WRDFFRXQWIRUDQDO\\WLFDOXQFHUWDLQWLHVDVVRFLDWHGZLWKWKHPHWKRGRORJ\\XVHGWRFDOFXODWHHPEULWWOHPHQWRI
WKH6W/XFLH539VXSSRUWVWUXFWXUH
6W/XFLH8QLW
>



@DFH

6W/XFLH8QLW
>



@DFH
,Q DGGLWLRQ WR WKH DSSOLHG VWUHVVHV RQ WKH KRUL]RQWDO SODWH VHH 7DEOH   ZHOGLQJ UHVLGXDO VWUHVV LV
FRQVLGHUHGSHU6HFWLRQIRUWKHSRVWXODWHGVHPLHOOLSWLFDOIODZVDQGLQILQLWHO\\ORQJHGJHIODZLQWKHZHOGHG
SRUWLRQRIWKHSODWH%DVHGRQ6HFWLRQ>



@DFH
9DULRXVSRVWXODWHGIODZVKDSHVLQDSODWHPRGHOZHUHDQDO\\]HGLQFOXGLQJDVWXG\\RIVHPLHOOLSWLFDOIODZV
ZLWKDVSHFWUDWLRV IODZOHQJWKRYHUIODZGHSWK RIDQGDQGDQLQILQLWHOHQJWKIODZLQWKHZHOG7KH
DVSHFWUDWLRVRIDQGIRUWKHVHPLHOOLSWLFDOIODZVDVZHOODVWKHLQILQLWHO\\ORQJIODZVKDSHDUHSURYLGHG
DVDSDUDPHWULFVWXG\\RIFULWLFDOIODZVL]HV7KHFDOFXODWHGFULWLFDOIODZVL]HVDUHVKRZQLQ7DEOHDDQG
7DEOHEIRUWKHSUHYLRXVO\\PHQWLRQHGSRVWXODWHGIODZVKDSHVDVZHOODVWKH>












@DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
>


@DFHWKXVWKH
KRUL]RQWDOSODWHDWWKHWRSRIWKHKRUL]RQWDOVXSSRUWDQGDVVRFLDWHGZHOGVFRQWLQXHWREHVWUXFWXUDOO\\VWDEOH
FRQVLGHULQJ\\HDUVRIUDGLDWLRQHPEULWWOHPHQWHIIHFWVRQWKHVXSSRUWV
$VVKRZQLQ7DEOHDDQG7DEOHEWKHFKDQJHLQHPEULWWOHPHQWIURPWR\\HDUVUHVXOWVLQFULWLFDO
IODZVL]HVWKDWYDU\\E\\DSSUR[LPDWHO\\WRIRU6W/XFLH8QLWDQGDSSUR[LPDWHO\\WRIRU
6W/XFLH8QLW7KHXSSHUUDQJHRIFKDQJHLQFULWLFDOIODZVL]HV DQG LVEDVHGRQWKHSRVWXODWHG
VHPLHOOLSWLFDOIODZVL]HZLWKDVSHFWUDWLRRIDQGLVPRVWO\\GXHWRWKH>


@DFH7KHPDJQLWXGH
RIWKHFULWLFDOIODZVL]HVEHWZHHQDQG\\HDUVLVPRUHVLPLODU LQWKHUDQJHRIDSSUR[LPDWHO\\WR
IRU6W/XFLH8QLWDQGDSSUR[LPDWHO\\WRIRU6W/XFLH8QLW IRUWKHSRVWXODWHGVHPLHOOLSWLFDO
IODZVL]HZLWKDVSHFWUDWLRRIDQGWKHLQILQLWHO\\ORQJHGJHIODZ>


@DFH,QDGGLWLRQWKHGLIIHUHQFHLQFULWLFDO
IODZVL]HUHVXOWVEHWZHHQHPEULWWOHPHQWZLWKDQGZLWKRXWDQDO\\WLFDOXQFHUWDLQWLHVUDQJHVIURPWR
LHWKHPDJQLWXGHRIWKHFULWLFDOIODZVL]HVLVVLPLODU 7KXVWKHKRUL]RQWDOSODWHDWWKHWRSRIWKHKRUL]RQWDO
VXSSRUWDQGWKHDVVRFLDWHGZHOGVDUHFRQVLGHUHGWREHIODZWROHUDQWIRU\\HDUVDQGWKHUHLVQRFRQFHUQIRU
VWUXFWXUDOLQVWDELOLW\\GXHWRUDGLDWLRQHPEULWWOHPHQW

 %DVH3ODWH
>













@DFH7KXVWKHERWWRPRIWKHFROXPQEDVHSODWH
DQGDVVRFLDWHGZHOGVDUHFRQVLGHUHGWREHIODZWROHUDQWIRU\\HDUVDQGWKHUHLVQRFRQFHUQIRUVWUXFWXUDO
LQVWDELOLW\\GXHWRUDGLDWLRQHPEULWWOHPHQW>


@DFH



 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
7DEOHD6XPPDU\\RI7RSRI+RUL]RQWDO6XSSRUW+/-'+RUL]RQWDO3ODWH&ULWLFDO)ODZ6L]H
6W/XFLH8QLW
&RPSRQHQW
)UDFWXUH
7RXJKQHVV
/RDGLQJ
&RPELQDWLRQ
&ULWLFDO)ODZ6L]H DW  D 
6HPL
(OOLSWLFDO
$5   E 
6HPL
(OOLSWLFDO
$5   E 
,QILQLWH
(GJH E 
'
+RUL]RQWDO
3ODWH
>
@DFHIRU
()3<
ZLWKRXWDQDO\\WLFDO
XQFHUWDLQWLHV 
1RUPDO



8SVHW



)DXOWHG



>
@DFHIRU
()3<
ZLWKRXWDQDO\\WLFDO
XQFHUWDLQWLHV 
1RUPDO



8SVHW



)DXOWHG



>
@DFHIRU
()3<
ZLWKDQDO\\WLFDO
XQFHUWDLQWLHV 
1RUPDO



8SVHW



)DXOWHG



>
@DFHIRU
()3<
ZLWKDQDO\\WLFDO
XQFHUWDLQWLHV 
1RUPDO



8SVHW



)DXOWHG




6HFWLRQ;,$OORZDEOH)ODZ6L]H



1RWHV
D  7KHFULWLFDOIODZVL]HVDUHGHWHUPLQHGE\\VHWWLQJWKHDSSOLHGVWUHVVLQWHQVLW\\IDFWRUHTXDOWRWKHIUDFWXUHWRXJKQHVV
DQGEDFNFDOFXODWLQJIODZVL]H3ODWHWKLFNQHVV '
E  7KHZHOGVZLWKLQWKHHQWLUH539VWUXFWXUDOVWHHOVXSSRUWVDW6W/XFLH8QLW>



@DFH


 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
7DEOHE6XPPDU\\RI7RSRI+RUL]RQWDO6XSSRUW+/-'+RUL]RQWDO3ODWH&ULWLFDO)ODZ6L]H
6W/XFLH8QLW
&RPSRQHQW
)UDFWXUH
7RXJKQHVV
/RDGLQJ
&RPELQDWLRQ
&ULWLFDO)ODZ6L]H DW  D 
6HPL
(OOLSWLFDO
$5   E 
6HPL
(OOLSWLFDO
$5   E 
,QILQLWH
(GJH E 
'
+RUL]RQWDO
3ODWH
>
@DFHIRU
()3<
ZLWKRXWDQDO\\WLFDO
XQFHUWDLQWLHV 
1RUPDO



8SVHW



)DXOWHG



>
@DFHIRU
()3<
ZLWKRXWDQDO\\WLFDO
XQFHUWDLQWLHV 
1RUPDO



8SVHW



)DXOWHG



>
@DFHIRU
()3<
ZLWKDQDO\\WLFDO
XQFHUWDLQWLHV 
1RUPDO



8SVHW



)DXOWHG



>
@DFHIRU
()3<
ZLWKDQDO\\WLFDO
XQFHUWDLQWLHV 
1RUPDO



8SVHW



)DXOWHG




6HFWLRQ;,$OORZDEOH)ODZ6L]H



1RWHV
D  7KHFULWLFDOIODZVL]HVDUHGHWHUPLQHGE\\VHWWLQJWKHDSSOLHGVWUHVVLQWHQVLW\\IDFWRUHTXDOWRWKHIUDFWXUHWRXJKQHVV
DQGEDFNFDOFXODWLQJIODZVL]H3ODWHWKLFNQHVV '
E  7KHZHOGVZLWKLQWKHHQWLUH539VWUXFWXUDOVWHHOVXSSRUWVDW6W/XFLH8QLW>



@DFH




 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ

7232)+25,=217$/6833257+/-'9(57,&$/3/$7(
7KH'YHUWLFDOSODWH $670$&ODVV*UDGH% DWWKHWRSRIWKHKRUL]RQWDOVXSSRUWDQGWKHDVVRFLDWHG
ZHOGVDUH VXEMHFWHG WRPRGHUDWHHPEULWWOHPHQW UHVXOWLQJLQ WKHPLQLPXP IUDFWXUH WRXJKQHVVYDOXHVDV
VKRZQEHORZ VHH7DEOHDQG7DEOH 1RWHWKDWDVDVWXG\\LURQGSDLVLQFUHDVHGE\\WRDFFRXQW
IRUDQDO\\WLFDOXQFHUWDLQWLHVDVVRFLDWHGZLWKWKHPHWKRGRORJ\\XVHGWRFDOFXODWHHPEULWWOHPHQWRIWKH6W/XFLH
539VXSSRUWVWUXFWXUH
6W/XFLH8QLW
>



@DFH

6W/XFLH8QLW
>



@DFH
,QDGGLWLRQWRWKHDSSOLHGVWUHVVHVRQWKHYHUWLFDOSODWH VHH7DEOH ZHOGLQJUHVLGXDOVWUHVVLVFRQVLGHUHG
SHU6HFWLRQIRUWKHSRVWXODWHGVHPLHOOLSWLFDOIODZDQGLQILQLWHO\\ORQJHGJHIODZLQWKHZHOGHGSRUWLRQRI
WKHSODWH%DVHGRQ6HFWLRQ>


@DFH
9DULRXVSRVWXODWHGIODZVKDSHVLQDSODWHPRGHOZHUHDQDO\\]HGLQFOXGLQJDVWXG\\RIVHPLHOOLSWLFDOIODZV
ZLWKDVSHFWUDWLRV IODZOHQJWKRYHUIODZGHSWK RIDQGDQGDQLQILQLWHOHQJWKIODZLQWKHZHOG7KH
DVSHFWUDWLRVRIDQGIRUWKHVHPLHOOLSWLFDOIODZVDVZHOODVWKHLQILQLWHO\\ORQJIODZVKDSHDUHSURYLGHG
DVDSDUDPHWULFVWXG\\RIFULWLFDOIODZVL]HV7KHFDOFXODWHGFULWLFDOIODZVL]HVDUHVKRZQLQ7DEOHDDQG
7DEOHEIRUWKHSUHYLRXVO\\PHQWLRQHGSRVWXODWHGIODZVKDSHVDVZHOODVWKH>













@DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
>

@DFHWKXVWKHYHUWLFDO
SODWHDWWKHWRSRIWKHKRUL]RQWDOVXSSRUWDQGDVVRFLDWHGZHOGVFRQWLQXHWREHVWUXFWXUDOO\\VWDEOHFRQVLGHULQJ
\\HDUVRIUDGLDWLRQHPEULWWOHPHQWHIIHFWVRQWKHVXSSRUWV
$VVKRZQLQ7DEOHDDQG7DEOHEWKHFKDQJHLQHPEULWWOHPHQWIURPWR\\HDUVUHVXOWVLQFULWLFDO
IODZVL]HVWKDWYDU\\E\\DSSUR[LPDWHO\\WRIRU6W/XFLH8QLWVDQG7KHXSSHUUDQJHRIFKDQJHLQ
FULWLFDOIODZVL]HV  LVEDVHGRQWKHSRVWXODWHGVHPLHOOLSWLFDOIODZVL]HZLWKDVSHFWUDWLRRIDQGLV
PRVWO\\GXHWRWKH>


@DFH7KHPDJQLWXGHRIWKHFULWLFDOIODZVL]HVEHWZHHQDQG\\HDUV
LVPRUHVLPLODU RQWKHUDQJHRIDSSUR[LPDWHO\\WRIRU6W/XFLH8QLWVDQG IRUWKHSRVWXODWHG
VHPLHOOLSWLFDOIODZVL]HZLWKDVSHFWUDWLRRIDQGWKHLQILQLWHO\\ORQJHGJHIODZ>


@DFH,QDGGLWLRQWKHGLIIHUHQFH
LQFULWLFDOIODZVL]HUHVXOWVEHWZHHQHPEULWWOHPHQWZLWKDQGZLWKRXWDQDO\\WLFDOXQFHUWDLQWLHVUDQJHVIURP
WR LHWKHPDJQLWXGHRIWKHFULWLFDOIODZVL]HVLVVLPLODU 7KXVWKHYHUWLFDOSODWHDWWKHWRSRIWKH
KRUL]RQWDOVXSSRUWDQGWKHDVVRFLDWHGZHOGVDUHFRQVLGHUHGWREHIODZWROHUDQWIRU\\HDUVDQGWKHUHLVQR
FRQFHUQIRUVWUXFWXUDOLQVWDELOLW\\GXHWRUDGLDWLRQHPEULWWOHPHQW




 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
7DEOHD6XPPDU\\RI7RSRI+RUL]RQWDO6XSSRUW+/-'9HUWLFDO3ODWH&ULWLFDO)ODZ6L]H
6W/XFLH8QLW
&RPSRQHQW
)UDFWXUH
7RXJKQHVV
/RDGLQJ
&RPELQDWLRQ
&ULWLFDO)ODZ6L]H DW  D 
6HPL
(OOLSWLFDO
$5   E 
6HPL
(OOLSWLFDO
$5   E 
,QILQLWH
(GJH E 
'9HUWLFDO
3ODWH
>
@DFHIRU
()3<
ZLWKRXWDQDO\\WLFDO
XQFHUWDLQWLHV 
1RUPDO



8SVHW



)DXOWHG



>
@DFHIRU
()3<
ZLWKRXWDQDO\\WLFDO
XQFHUWDLQWLHV 
1RUPDO



8SVHW



)DXOWHG



>
@DFHIRU
()3<
ZLWKDQDO\\WLFDO
XQFHUWDLQWLHV 
1RUPDO



8SVHW



)DXOWHG



>
@DFHIRU
()3<
ZLWKDQDO\\WLFDO
XQFHUWDLQWLHV 
1RUPDO



8SVHW



)DXOWHG




6HFWLRQ;,$OORZDEOH)ODZ6L]H



1RWHV
D  7KHFULWLFDOIODZVL]HVDUHGHWHUPLQHGE\\VHWWLQJWKHDSSOLHGVWUHVVLQWHQVLW\\IDFWRUHTXDOWRWKHIUDFWXUHWRXJKQHVV
DQGEDFNFDOFXODWLQJIODZVL]H3ODWHWKLFNQHVV '
E  7KHZHOGVZLWKLQWKHHQWLUH539VWUXFWXUDOVWHHOVXSSRUWVDW6W/XFLH8QLW>



@DFH


 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
7DEOHE6XPPDU\\RI7RSRI+RUL]RQWDO6XSSRUW+/-'9HUWLFDO3ODWH&ULWLFDO)ODZ6L]H
6W/XFLH8QLW
&RPSRQHQW
)UDFWXUH
7RXJKQHVV
/RDGLQJ
&RPELQDWLRQ
&ULWLFDO)ODZ6L]H DW  D 
6HPL
(OOLSWLFDO
$5   E 
6HPL
(OOLSWLFDO
$5   E 
,QILQLWH
(GJH E 
'9HUWLFDO
3ODWH
>
@DFHIRU
()3<
ZLWKRXWDQDO\\WLFDO
XQFHUWDLQWLHV 
1RUPDO



8SVHW



)DXOWHG



>
@DFHIRU
()3<
ZLWKRXWDQDO\\WLFDO
XQFHUWDLQWLHV 
1RUPDO



8SVHW



)DXOWHG



>
@DFHIRU
()3<
ZLWKDQDO\\WLFDO
XQFHUWDLQWLHV 
1RUPDO



8SVHW



)DXOWHG



>
@DFHIRU
()3<
ZLWKDQDO\\WLFDO
XQFHUWDLQWLHV 
1RUPDO



8SVHW



)DXOWHG




6HFWLRQ;,$OORZDEOH)ODZ6L]H



1RWHV
D  7KHFULWLFDOIODZVL]HVDUHGHWHUPLQHGE\\VHWWLQJWKHDSSOLHGVWUHVVLQWHQVLW\\IDFWRUHTXDOWRWKHIUDFWXUHWRXJKQHVV
DQGEDFNFDOFXODWLQJIODZVL]H3ODWHWKLFNQHVV '
E  7KHZHOGVZLWKLQWKHHQWLUH539VWUXFWXUDOVWHHOVXSSRUWVDW6W/XFLH8QLW>



@DFH



 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ

%277202)+25,=217$/6833257+/-'+25,=217$/3/$7(
7KH'KRUL]RQWDOSODWH $670$ DWWKHERWWRPRIWKHKRUL]RQWDOVXSSRUWDQGWKHDVVRFLDWHGZHOGVDUH
VXEMHFWHGWRKLJKHPEULWWOHPHQWUHVXOWLQJLQWKHPLQLPXPIUDFWXUHWRXJKQHVVYDOXHVDVVKRZQEHORZ VHH
7DEOHDQG7DEOH 1RWHWKDWDVDVWXG\\RIIUDFWXUHWRXJKQHVVLURQGSDLVLQFUHDVHGE\\WR
DFFRXQWIRUDQDO\\WLFDOXQFHUWDLQWLHVDVVRFLDWHGZLWKWKHPHWKRGRORJ\\XVHGWRFDOFXODWHHPEULWWOHPHQWRIWKH
6W/XFLH539VXSSRUWVWUXFWXUH,WLVVKRZQWKDWWKHFKDQJHLQQHXWURQHPEULWWOHPHQWRYHUWLPHLVQRW
VLJQLILFDQW LHWKHFKDQJHLQIUDFWXUHWRXJKQHVVLVVPDOOIURP\\HDUVWR\\HDUV VLQFHWKHERWWRPRIWKH
KRUL]RQWDOVXSSRUWLVFORVHWRWKHYLFLQLW\\RIWKH539DFWLYHFRUH
6W/XFLH8QLW
>



@DFH

6W/XFLH8QLW
>



@DFH
,Q DGGLWLRQ WR WKH DSSOLHG VWUHVVHV RQ WKH KRUL]RQWDO SODWH VHH 7DEOH   ZHOGLQJ UHVLGXDO VWUHVV LV
FRQVLGHUHGSHU6HFWLRQIRUWKHSRVWXODWHGVHPLHOOLSWLFDOIODZVDQGLQILQLWHO\\ORQJHGJHIODZLQWKHZHOGHG
SRUWLRQRIWKHSODWH%DVHGRQ6HFWLRQ>



@DFH
9DULRXVSRVWXODWHGIODZVKDSHVLQDSODWHPRGHOZHUHDQDO\\]HGLQFOXGLQJDVWXG\\RIVHPLHOOLSWLFDOIODZV
ZLWKDVSHFWUDWLRV IODZOHQJWKRYHUIODZGHSWK RIDQGDQGDQLQILQLWHOHQJWKIODZLQWKHZHOG7KH
DVSHFWUDWLRVRIDQGIRUWKHVHPLHOOLSWLFDOIODZVDVZHOODVWKHRWKHUIODZVKDSHVDUHSURYLGHGDVD
SDUDPHWULFVWXG\\RIFULWLFDOIODZVL]HV7KHFDOFXODWHGFULWLFDOIODZVL]HVDUHVKRZQLQ7DEOHDDQG
7DEOHEIRUWKHSUHYLRXVO\\PHQWLRQHGSRVWXODWHGIODZVKDSHVDVZHOODVWKH>










@DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
>




@DFHWKXVWKHKRUL]RQWDO
SODWH DW WKH ERWWRP RI WKH KRUL]RQWDO VXSSRUW DQG DVVRFLDWHG ZHOGV FRQWLQXH WR EH VWUXFWXUDOO\\ VWDEOH
FRQVLGHULQJ\\HDUVRIUDGLDWLRQHPEULWWOHPHQWHIIHFWVRQWKHVXSSRUWV
$VVKRZQLQ7DEOHDDQG7DEOHEWKHFKDQJHLQHPEULWWOHPHQWIURPWR\\HDUVUHVXOWVLQFULWLFDO
IODZVL]HVWKDWYDU\\XSWRDSSUR[LPDWHO\\ LHWKHPDJQLWXGHRIWKHFULWLFDOIODZVL]HVLVVLPLODU IRU6W
/XFLH8QLWVDQG,WLVGHWHUPLQHGWKDWWKHHIIHFWRIWKHFKDQJHLQHPEULWWOHPHQWRQWKHFULWLFDOIODZVL]HV
RYHUWLPHLVPLQRU,QDGGLWLRQWKHGLIIHUHQFHLQFULWLFDOIODZVL]HUHVXOWVEHWZHHQHPEULWWOHPHQWZLWKDQG
ZLWKRXWDQDO\\WLFDOXQFHUWDLQWLHVYDULHVXSWRDSSUR[LPDWHO\\ LHWKHPDJQLWXGHRIWKHFULWLFDOIODZVL]HV
LVVLPLODU 7KXVWKHKRUL]RQWDOSODWHDWWKHERWWRPRIWKHKRUL]RQWDOVXSSRUWDQGWKHDVVRFLDWHGZHOGVDUH
FRQVLGHUHGWREHIODZWROHUDQWIRU\\HDUVDQGWKHUHLVQRFRQFHUQIRUVWUXFWXUDOLQVWDELOLW\\GXHWRUDGLDWLRQ
HPEULWWOHPHQW

 &ROXPQ
>










@DFH7KXVWKHFROXPQDQGDVVRFLDWHGZHOGVDUH
FRQVLGHUHGWREHIODZWROHUDQWIRU\\HDUVDQGWKHUHLVQRFRQFHUQIRUVWUXFWXUDOLQVWDELOLW\\GXHWRUDGLDWLRQ
HPEULWWOHPHQW>

@DFH


 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
7DEOHD6XPPDU\\RI%RWWRPRI+RUL]RQWDO6XSSRUW+/-'+RUL]RQWDO3ODWH&ULWLFDO)ODZ6L]H
6W/XFLH8QLW
&RPSRQHQW
)UDFWXUH
7RXJKQHVV
/RDGLQJ
&RPELQDWLRQ
&ULWLFDO)ODZ6L]H DW  D 
6HPL
(OOLSWLFDO
$5   E 
6HPL
(OOLSWLFDO
$5   E 
,QILQLWH
(GJH E 
'
+RUL]RQWDO
3ODWH
>
@DFHIRU
()3<
ZLWKRXWDQDO\\WLFDO
XQFHUWDLQWLHV 
1RUPDO



8SVHW



)DXOWHG



>
@DFHIRU
()3<
ZLWKRXWDQDO\\WLFDO
XQFHUWDLQWLHV 
1RUPDO



8SVHW



)DXOWHG



>
@DFHIRU
()3<
ZLWKDQDO\\WLFDO
XQFHUWDLQWLHV 
1RUPDO



8SVHW



)DXOWHG



>
@DFHIRU
()3<
ZLWKDQDO\\WLFDO
XQFHUWDLQWLHV 
1RUPDO



8SVHW



)DXOWHG




6HFWLRQ;,$OORZDEOH)ODZ6L]H



1RWHV
D  7KHFULWLFDOIODZVL]HVDUHGHWHUPLQHGE\\VHWWLQJWKHDSSOLHGVWUHVVLQWHQVLW\\IDFWRUHTXDOWRWKHIUDFWXUHWRXJKQHVV
DQGEDFNFDOFXODWLQJIODZVL]H3ODWHWKLFNQHVV '
E  7KHZHOGVZLWKLQWKHHQWLUH539VWUXFWXUDOVWHHOVXSSRUWVDW6W/XFLH8QLW>



@DFH


 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
7DEOHE6XPPDU\\RI%RWWRPRI+RUL]RQWDO6XSSRUW+/-'+RUL]RQWDO3ODWH&ULWLFDO)ODZ6L]H
6W/XFLH8QLW
&RPSRQHQW
)UDFWXUH
7RXJKQHVV
/RDGLQJ
&RPELQDWLRQ
&ULWLFDO)ODZ6L]H DW  D 
6HPL
(OOLSWLFDO
$5   E 
6HPL
(OOLSWLFDO
$5   E 
,QILQLWH
(GJH E 
'
+RUL]RQWDO
3ODWH
>
@DFHIRU
()3<
ZLWKRXWDQDO\\WLFDO
XQFHUWDLQWLHV 
1RUPDO



8SVHW



)DXOWHG



>
@DFHIRU
()3<
ZLWKRXWDQDO\\WLFDO
XQFHUWDLQWLHV 
1RUPDO



8SVHW



)DXOWHG



>
@DFHIRU
()3<
ZLWKDQDO\\WLFDO
XQFHUWDLQWLHV 
1RUPDO



8SVHW



)DXOWHG



>
@DFHIRU
()3<
ZLWKDQDO\\WLFDO
XQFHUWDLQWLHV 
1RUPDO



8SVHW



)DXOWHG




6HFWLRQ;,$OORZDEOH)ODZ6L]H



1RWHV
D  7KHFULWLFDOIODZVL]HVDUHGHWHUPLQHGE\\VHWWLQJWKHDSSOLHGVWUHVVLQWHQVLW\\IDFWRUHTXDOWRWKHIUDFWXUHWRXJKQHVV
DQGEDFNFDOFXODWLQJIODZVL]H3ODWHWKLFNQHVV '
E  7KHZHOGVZLWKLQWKHHQWLUH539VWUXFWXUDOVWHHOVXSSRUWVDW6W/XFLH8QLW>



@DFH



 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ

%2/76&211(&7,1*&2/801$1'%277202)+25,=217$/6833257
7KHUHDUHHLJKWEROWV $670$ ZKLFKFRQQHFWWKHWRSRIWKHFROXPQWRWKHERWWRPRIWKHKRUL]RQWDO
VXSSRUW7KHVHEROWVDUHVXEMHFWHGWRKLJKHPEULWWOHPHQWUHVXOWLQJLQIUDFWXUHWRXJKQHVVYDOXHVDVVKRZQ
EHORZ VHH7DEOHDQG7DEOH 1RWHWKDWDVDVWXG\\RIIUDFWXUHWRXJKQHVVLURQGSDLVLQFUHDVHGE\\
WRDFFRXQWIRUDQDO\\WLFDOXQFHUWDLQWLHVDVVRFLDWHGZLWKWKHPHWKRGRORJ\\XVHGWRFDOFXODWHHPEULWWOHPHQW
RIWKH6W/XFLH539VXSSRUWVWUXFWXUH,WLVVKRZQWKDWWKHFKDQJHLQQHXWURQHPEULWWOHPHQWRYHUWLPHLV
QRWVLJQLILFDQW LHWKHFKDQJHLQIUDFWXUHWRXJKQHVVLVVPDOOIURP\\HDUVWR\\HDUV VLQFHWKHERWWRP
RIWKHKRUL]RQWDOVXSSRUWWRSRIWKHFROXPQLVFORVHWRWKHYLFLQLW\\RIWKH539DFWLYHFRUH
6W/XFLH8QLW
>



@DFH

6W/XFLH8QLW
>



@DFH
7KH>

















 @DFHWKH EROWV FRQWLQXH WR EH VWUXFWXUDOO\\ VWDEOH
FRQVLGHULQJ\\HDUVRIUDGLDWLRQHPEULWWOHPHQWHIIHFWVRQWKHVXSSRUWV
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
$VVKRZQLQ7DEOHDDQG7DEOHEWKHFKDQJHLQHPEULWWOHPHQWIURPWR\\HDUVUHVXOWVLQFULWLFDO
IODZVL]HVWKDWYDU\\E\\DSSUR[LPDWHO\\WR LHWKHPDJQLWXGHRIWKHFULWLFDOIODZVL]HVLVVLPLODU ,W
LVGHWHUPLQHGWKDWWKHHIIHFWRIWKHFKDQJHLQHPEULWWOHPHQWRYHUWLPHLVPLQRURQWKHFULWLFDOIODZVL]HV,Q
DGGLWLRQWKHGLIIHUHQFHLQFULWLFDOIODZVL]HUHVXOWVEHWZHHQ HPEULWWOHPHQWZLWKDQGZLWKRXWDQDO\\WLFDO
XQFHUWDLQWLHVLVWR LHWKHPDJQLWXGHRIWKHFULWLFDOIODZVL]HVLVVLPLODU 7KXVWKHEROWVWKDW
FRQQHFWWKHFROXPQWRWKHERWWRPRIWKHKRUL]RQWDOVXSSRUWVDUHFRQVLGHUHGWREHIODZWROHUDQWIRU\\HDUV
DQGWKHUHLVQRFRQFHUQIRUVWUXFWXUDOLQVWDELOLW\\GXHWRUDGLDWLRQHPEULWWOHPHQW

 $QFKRU%ROWV



@DFH
7KHDQFKRUEROWVDWWKHEDVHSODWHVDUHHPEHGGHGLQFRQFUHWH$GGLWLRQDOO\\WKHLUUDGLDWLRQHPEULWWOHPHQW
HIIHFWLVLQVLJQLILFDQWIRUWKHEDVHSODWHDQFKRUEROWVWKXV>

@DFH7KHVHDQFKRUEROWVDUHLQFOXGHGLQWKH)($PRGHODQGWKHERXQGDU\\
FRQGLWLRQVDUHVHWXSVXFKWKDWWKHDQFKRUEROWVUHVLVWDQ\\ODWHUDOORDGVWKDWZRXOGFDXVHWKHEDVHSODWHWR
VOLGHDORQJWKHFRQFUHWH'XHWRWKHULJLGLW\\RIWKHXSSHUSDUWRIWKHVXSSRUWWKHDQFKRUEROWVDWWKHEDVH
H[SHULHQFH LQVLJQLILFDQW VKHDU ORDG 6WUHVVHV IRU WKH EDVH SODWH DQFKRU EROWV DUH ERXQGHG E\\ WKH EROWV
FRQQHFWLQJWKHWRSRIWKHFROXPQDQGWKHKRUL]RQWDOVXSSRUW>


@DFH7KXVWKHVHDQFKRUEROWVDUH
FRQVLGHUHGWREHIODZWROHUDQWIRU\\HDUVDQGWKHUHLVQRFRQFHUQIRUVWUXFWXUDOLQVWDELOLW\\GXHWRUDGLDWLRQ
HPEULWWOHPHQW
7KHDQFKRUEROWVDWWKHKRUL]RQWDOVXSSRUWVDUHQRWHQWLUHO\\HPEHGGHGLQFRQFUHWHEXWSDUWLDOO\\H[SRVHG
'XHWRWKHLUUHODWLYHIOH[LELOLW\\FRPSDUHGWRWKHUHVWRIWKHXSSHUVXSSRUWZKLFKLVHPEHGGHGLQFRQFUHWHDW
LWVHQGVDQGWKHFOHDUDQFHKROHVWKHVHDQFKRUEROWVZLOOQRWSURYLGHDQ\\VLJQLILFDQWORDGUHVLVWDQFHLQWKH
GLUHFWLRQVQRUPDOWRWKHEROWD[LV$OORIWKHORDGVDUHWUDQVPLWWHGWKURXJKWKHERG\\RIWKHVXSSRUWWRWKH
FRQFUHWHHPEHGPHQWDWWKHHQGVRIWKHXSSHUVXSSRUWDQGWRWKHFROXPQ$VDUHVXOWWKH6W/XFLH539
KRUL]RQWDOVXSSRUWDQFKRUEROWVDUHQRWOLPLWLQJ7KHVHDQFKRUEROWVDUHFRQVLGHUHGWREHIODZWROHUDQWIRU
\\HDUVDQGWKHUHLVQRFRQFHUQIRUVWUXFWXUDOLQVWDELOLW\\GXHWRUDGLDWLRQHPEULWWOHPHQW


 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
7DEOHD6XPPDU\\RI%ROWV&RQQHFWLQJ&ROXPQDQG%RWWRPRI+RUL]RQWDO6XSSRUW&ULWLFDO)ODZ6L]H
6W/XFLH8QLW
&RPSRQHQW
)UDFWXUH
7RXJKQHVV
/RDGLQJ
&RPELQDWLRQ
&ULWLFDO)ODZ6L]H D 
&LUFXPIHUHQWLDO
&RQWLQXRXV
D5DGLXV
6WUDLJKW)URQW
D'
6HPL&LUFXODU
)URQW
D'
%ROWV
>
@DFHIRU
()3<
ZLWKRXWDQDO\\WLFDO
XQFHUWDLQWLHV 
1RUPDO



8SVHW



)DXOWHG



>
@DFHIRU
()3<
ZLWKRXWDQDO\\WLFDO
XQFHUWDLQWLHV 
1RUPDO



8SVHW



)DXOWHG



>
@DFHIRU
()3<
ZLWKDQDO\\WLFDO
XQFHUWDLQWLHV 
1RUPDO



8SVHW



)DXOWHG



>
@DFHIRU
()3<
ZLWKDQDO\\WLFDO
XQFHUWDLQWLHV 
1RUPDO



8SVHW



)DXOWHG




6HFWLRQ;,$OORZDEOH)ODZ6L]H
6HH1RWH F 
 E 
 E 
1RWHV
D  7KHFULWLFDOIODZVL]HVDUHGHWHUPLQHGE\\VHWWLQJWKHDSSOLHGVWUHVVLQWHQVLW\\IDFWRUHTXDOWRWKHIUDFWXUHWRXJKQHVVDQG
EDFNFDOFXODWLQJIODZVL]H%ROW'LDPHWHU '  '
E  7KH6HFWLRQ;,DOORZDEOHIODZVL]HEDVHGRQ>


@DFH
F  7KH6HFWLRQ;,DOORZDEOHIODZVL]HEDVHGRQ>

@DFH


 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
7DEOHE6XPPDU\\RI%ROWV&RQQHFWLQJ&ROXPQDQG%RWWRPRI+RUL]RQWDO6XSSRUW&ULWLFDO)ODZ6L]H
6W/XFLH8QLW
&RPSRQHQW
)UDFWXUH
7RXJKQHVV
/RDGLQJ
&RPELQDWLRQ
&ULWLFDO)ODZ6L]H D 
&LUFXPIHUHQWLDO
&RQWLQXRXV
D5DGLXV
6WUDLJKW)URQW
D'
6HPL&LUFXODU
)URQW
D'
%ROWV
>
@DFHIRU
()3<
ZLWKRXWDQDO\\WLFDO
XQFHUWDLQWLHV 
1RUPDO



8SVHW



)DXOWHG



>
@DFHIRU
()3<
ZLWKRXWDQDO\\WLFDO
XQFHUWDLQWLHV 
1RUPDO



8SVHW



)DXOWHG



>
@DFHIRU
()3<
ZLWKDQDO\\WLFDO
XQFHUWDLQWLHV 
1RUPDO



8SVHW



)DXOWHG



>
@DFHIRU
()3<
ZLWKDQDO\\WLFDO
XQFHUWDLQWLHV 
1RUPDO



8SVHW



)DXOWHG




6HFWLRQ;,$OORZDEOH)ODZ6L]H
6HH1RWH F 
 E 
 E 
1RWHV
D  7KHFULWLFDOIODZVL]HVDUHGHWHUPLQHGE\\VHWWLQJWKHDSSOLHGVWUHVVLQWHQVLW\\IDFWRUHTXDOWRWKHIUDFWXUHWRXJKQHVVDQG
EDFNFDOFXODWLQJIODZVL]H%ROW'LDPHWHU '  '
E  7KH6HFWLRQ;,DOORZDEOHIODZVL]HEDVHGRQ>


@DFH
F  7KH6HFWLRQ;,DOORZDEOHIODZVL]HEDVHGRQ>

@DFH




 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ

%2/76$762&.(76/,'(5(675$,1,1*3/$7(6
7KHUHDUHHLJKWEROWVWKDWIDVWHQWZRUHVWUDLQLQJSODWHVWRWKHKRUL]RQWDOVXUIDFHRIWKHVRFNHWVOLGHDVVHPEO\\
QHDUWKHWRSRIWKH539VXSSRUWDVVHPEO\\7KHVHEROWVDUHDZD\\IURPWKHYLFLQLW\\RIWKH539DFWLYHFRUH
DQG VXEMHFWHG WR D PRGHUDWH DPRXQW RI HPEULWWOHPHQW KRZHYHU VLQFH WKH PDWHULDO RI WKHVH EROWV LV
XQNQRZQWKHODUJHVWDPRXQWRIHPEULWWOHPHQWRQWKHHQWLUH539VXSSRUWVLVDSSOLHGWRWKHVHEROWVUHVXOWLQJ
LQIUDFWXUHWRXJKQHVVYDOXHVDVVKRZQEHORZ VHH7DEOHDQG7DEOH 7KHIUDFWXUHWRXJKQHVVYDOXHV
XVHGWRFDOFXODWHFULWLFDOIODZVL]HDUHQHDUO\\RQWKHORZHUVKHOIRIWKHORZHUWROHUDQFHERXQG0DVWHU
&XUYH1RWHWKDWDVDVWXG\\RIIUDFWXUHWRXJKQHVVLURQGSDLVLQFUHDVHGE\\WRDFFRXQWIRUDQDO\\WLFDO
XQFHUWDLQWLHVDVVRFLDWHGZLWKWKHPHWKRGRORJ\\XVHGWRFDOFXODWHHPEULWWOHPHQWRIWKH6W/XFLH539VXSSRUW
VWUXFWXUH
6W/XFLH8QLW
>



@DFH

6W/XFLH8QLW
>



@DFH
7KHEROWVDUHRQO\\VXEMHFWHGWRWKH>








@DFH
WKXVWKHEROWVFRQWLQXHWREHVWUXFWXUDOO\\VWDEOHFRQVLGHULQJ\\HDUVRIUDGLDWLRQHPEULWWOHPHQWHIIHFWVRQ
WKHVXSSRUWV
>






@DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
$VVKRZQLQ7DEOHDDQG7DEOHEWKHFKDQJHLQHPEULWWOHPHQWIURPWR\\HDUVUHVXOWVLQFULWLFDO
IODZVL]HVWKDWYDU\\E\\DSSUR[LPDWHO\\WR LHWKHPDJQLWXGHRIWKHFULWLFDOIODZVL]HVLVVLPLODU ,W
LVGHWHUPLQHGWKDWWKHHIIHFWRIWKHFKDQJHLQHPEULWWOHPHQWRYHUWLPHRQWKHFULWLFDOIODZVL]HVLVPLQRU,Q
DGGLWLRQWKHGLIIHUHQFHLQFULWLFDOIODZVL]HUHVXOWVEHWZHHQ HPEULWWOHPHQWZLWKDQGZLWKRXWDQDO\\WLFDO
XQFHUWDLQWLHVLVDSSUR[LPDWHO\\ LHWKHPDJQLWXGHRIWKHFULWLFDOIODZVL]HVLVVLPLODU 7KXVWKHEROWV
WKDWIDVWHQWZRUHVWUDLQLQJSODWHVWRWKHKRUL]RQWDOVXUIDFHRIWKHVRFNHWVOLGHDVVHPEO\\DUHFRQVLGHUHGWREH
IODZWROHUDQWIRU\\HDUVDQGWKHUHLVQRFRQFHUQIRUVWUXFWXUDOLQVWDELOLW\\GXHWRUDGLDWLRQHPEULWWOHPHQW


 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
7DEOHD6XPPDU\\RI%ROWVDW6RFNHW6OLGH5HVWUDLQLQJ3ODWH&ULWLFDO)ODZ6L]H
6W/XFLH8QLW
&RPSRQHQW
)UDFWXUH
7RXJKQHVV
/RDGLQJ
&RPELQDWLRQ
&ULWLFDO)ODZ6L]H
D'  D 
6LQJOH(GJH)ODZ
.,,0RGHO
%ROW
>
@DFHIRU
()3<
ZLWKRXWDQDO\\WLFDO
XQFHUWDLQWLHV 
$OO

>
@DFHIRU
()3<
ZLWKRXWDQDO\\WLFDO
XQFHUWDLQWLHV 
$OO

@DFHIRU
()3<
ZLWKDQDO\\WLFDO
XQFHUWDLQWLHV 
$OO

>
@DFHIRU
()3<
ZLWKDQDO\\WLFDO
XQFHUWDLQWLHV 
$OO


6HFWLRQ;,$OORZDEOH)ODZ6L]H
 E 
1RWHV
D  7KHFULWLFDOIODZVL]HVDUHGHWHUPLQHGE\\VHWWLQJWKHDSSOLHGVWUHVVLQWHQVLW\\IDFWRU
HTXDOWRWKHIUDFWXUHWRXJKQHVVDQGEDFNFDOFXODWLQJIODZVL]H%ROW'LDPHWHU 
'
E  7KH 6HFWLRQ ;, DOORZDEOH IODZVL]H EDVHG RQ >



@DFH


 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
7DEOHE6XPPDU\\RI%ROWVDW6RFNHW6OLGH5HVWUDLQLQJ3ODWH&ULWLFDO)ODZ6L]H
6W/XFLH8QLW
&RPSRQHQW
)UDFWXUH
7RXJKQHVV
/RDGLQJ
&RPELQDWLRQ
&ULWLFDO)ODZ6L]H
D'  D 
6LQJOH(GJH)ODZ
.,,0RGHO
%ROW
>
@DFHIRU
()3<
ZLWKRXWDQDO\\WLFDO
XQFHUWDLQWLHV 
$OO

>
@DFHIRU
()3<
ZLWKRXWDQDO\\WLFDO
XQFHUWDLQWLHV 
$OO

>
@DFHIRU
()3<
ZLWKDQDO\\WLFDO
XQFHUWDLQWLHV 
$OO

>
@DFHIRU
()3<
ZLWKDQDO\\WLFDO
XQFHUWDLQWLHV 
$OO


6HFWLRQ;,$OORZDEOH)ODZ6L]H
 E 
1RWHV
D  7KHFULWLFDOIODZVL]HVDUHGHWHUPLQHGE\\VHWWLQJWKHDSSOLHGVWUHVVLQWHQVLW\\IDFWRU
HTXDOWRWKHIUDFWXUHWRXJKQHVVDQGEDFNFDOFXODWLQJIODZVL]H%ROW'LDPHWHU 
'
E  7KH 6HFWLRQ ;, DOORZDEOH IODZVL]H EDVHG RQ >



@DFH



 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ

',6&866,212)&21&/86,216

(9$/8$7,212)&855(17&21',7,216
3HU6HFWLRQRI185(*>@SK\\VLFDOH[DPLQDWLRQRIWKHVWUXFWXUDOFRPSRQHQWVLVHVVHQWLDOWR
WKHUHHYDOXDWLRQFRPSOHWHGKHUHLQDQGDQDVVHVVPHQWRIWKHRYHUDOOFRQGLWLRQRIWKH539VXSSRUWVWUXFWXUH
)RU6W/XFLH8QLWWKHLQVSHFWLRQUHFRUGVLQGLFDWHWKDWDOOUHMHFWDEOHGHIHFWVGLVFRYHUHGGXULQJYLVXDO
LQVSHFWLRQPDJQHWLFWHVWLQJDQGXOWUDVRQLFWHVWLQJUHFRUGVZHUHUHSDLUHG5HMHFWDEOHGHIHFWVGLVFRYHUHGSHU
UDGLRJUDSKLF LQVSHFWLRQV DUH FKDUDFWHUL]HG DV VODJ LQFOXVLRQVODFN RI IXVLRQ DQG VXUIDFH LUUHJXODULWLHV
KRZHYHUQRFUDFNVZHUHUHFRUGHGRUPDUNHGDVUHMHFWDEOH$OWKRXJKLQVSHFWLRQUHFRUGVIRU6W/XFLH8QLW
ZHUHQRWLGHQWLILHGWKHVSHFLILFDWLRQVIRUERWK6W/XFLH8QLWDQG8QLWVWDWHWKDWWKHFRPSRQHQWVRIWKH
539VXSSRUWVZHUHWREHLQVSHFWHGGXULQJLQLWLDOIDEULFDWLRQDQGWKDWZHOGVZHUHWREHFDUHIXOO\\H[DPLQHG
WRHQVXUHWKDWWKHUHDUHQRVODJLQFOXVLRQVFUDWHUVFUDFNVRUXQGHUFXWVDQGWKDWGHIHFWVDUHWREHUHPRYHG
E\\FKLSSLQJRUJULQGLQJDQGWKHQUHZHOGHG,QDGGLWLRQWKHVSHFLILFDWLRQVVWDWHWKDWDOOILQLVKHGZRUNVKDOO
EHRIJRRGTXDOLW\\DQGKDYHDQHDWDSSHDUDQFHZLWKRXWZDUSDJH7KH$670$DQG$670$
VWDQGDUGVDQGUHODWHG$670VWDQGDUGVJHQHUDOO\\VWDWHWKDWSODWHVVKDOOEHIUHHRILQMXULRXVGHIHFWVDQGVKDOO
KDYHDZRUNPDQOLNHILQLVK9LVXDOLQVSHFWLRQUHTXLUHPHQWVIRUEROWVSHU$670$VWDWHWKDWDQ\\EROW
ZKLFKFRQWDLQVDEXUVWZRXOGEHFRQVLGHUHGGHIHFWLYHDQGUHPRYHGGHVWUR\\HG7KXVLWLVH[SHFWHGWKDW
FRPSRQHQWVDQDO\\]HGDUHIUHHIURPFUDFNVDIWHULQLWLDOIDEULFDWLRQDQGDIWHUDQH[WHQGHGSHULRGRIWLPHVLQFH
FUDFNJURZWKPHFKDQLVPDUHQRWSUHVHQWDWWKH539VXSSRUWV
7KHIROORZLQJWH[WZDVEDVHGRQ/756'$>@
6W/XFLH8QLW539VXSSRUWVZHUHLQVSHFWHGLQ$SULOEDVHGRQ97SHU(GLWLRQDQG
$GGHQGD$60(6HFWLRQ;,,:)UHTXLUHPHQWV7KH8QLW539VXSSRUWVZHUHDOVRLQVSHFWHGLQ
%DVHGRQWKHYLVXDOH[DPLQDWLRQDOO8QLWDFFHVVLEOHVXSSRUWFRPSRQHQWVZHUHDFFHSWDEOHWKHUHZDVQR
GHIRUPDWLRQRUVWUXFWXUDOGHJUDGDWLRQWKHUHZHUHQRFUDFNVLQZHOGVWKHUHZHUHQRORRVHPLVVLQJGHWDFKHG
LWHPVDQGQRUHFRUGDEOHFRUURVLRQZDVREVHUYHG H[FHSWIRUOLJKWUXVW ,QDGGLWLRQWKH8QLW539VXSSRUW
DWWKH&#xb3;%'KRWOHJZDVH[DPLQHGLQZLWK97DQGPDJQHWLFSDUWLFOHH[DPLQDWLRQRIWKHQR))OHVXSSRUW
IRRW7KHUHVXOWVZHUHDOVRDFFHSWDEOH
7KH6W/XFLH8QLW539VXSSRUWVZHUHLQVSHFWHGLQ%DVHGRQWKHYLVXDOH[DPLQDWLRQDOO8QLW
DFFHVVLEOHVXSSRUWFRPSRQHQWVZHUHDFFHSWDEOHWKHUHZDVQRGHIRUPDWLRQRUVWUXFWXUDOGHJUDGDWLRQWKHUH
ZHUHQRFUDFNVLQZHOGVWKHUHZHUHQRORRVHPLVVLQJGHWDFKHGLWHPVDQGQRUHFRUGDEOHFRUURVLRQZDV
REVHUYHG7KH8QLWLQVSHFWLRQUHSRUWLGHQWLILHGERULFDFLGUHVLGXHRQWKHVXSSRUWVKRZHYHUWKHVWUXFWXUDO
LQWHJULW\\ RI WKH VXSSRUWV ZDV QRW LPSDFWHG,Q DGGLWLRQ DOO 8QLW  539 VXSSRUWV DUH VFKHGXOHG IRU
H[DPLQDWLRQLQWKH)DOORI
7KHIROORZLQJGHVFULEHVWKHFXUUHQW6W/XFLH8QLWVDQG,6,SURJUDPVSHUWDLQLQJWRWKH539VXSSRUWV
6W/XFLH8QLWVDQGKDYHVLPLODUFRQILJXUDWLRQVDQGDFFHVVLELOLW\\UHJDUGLQJLQVSHFWLRQRIWKH539
VXSSRUWV)RUWKHXSSHUVXSSRUWDUHDZKHUHVWUHVVLVOLPLWLQJ97LVSHUIRUPHGIRUWKH$FROGOHJDQGWKH
$FROGOHJ$GGLWLRQDOO\\PDJQHWLFSDUWLFOHWHVWLQJLVUHTXLUHGIRURQHRIWKHWKUHH539QR))OHVXSSRUWIHHW
97DQG07DUHSHUIRUPHGIRUWKH&#xb3;%'KRWOHJ539VXSSRUW7KHVHLQVSHFWLRQVDUHLPSOHPHQWHGRQFH
HYHU\\WHQ\\HDUVDVSDUWRIWKH,6,SURJUDP
7RGDWHWKH6W/XFLH8QLWVDQG539VXSSRUWORFDWLRQVKDYHVKRZQDFFHSWDEOHLQVSHFWLRQUHVXOWVRYHU
SDVWLQVSHFWLRQLQWHUYDOVDQGQRJURVVGHIRUPDWLRQKDVEHHQGHWHFWHG
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ

&+$1*(,1(0%5,77/(0(1729(57,0(
>

























@DFH


&5,7,&$/)/$:6,=(&21&/86,216
%DVHGRQWKHFRQFOXVLRQVLQ185(*LWZDVGHWHUPLQHGWKDWWKH539VXSSRUWVZHUHQRWDFRQFHUQ
IRUWKHHQWLUHW\\RIWKHSODQW&#xb6;VOLIH LHRU\\HDUV (YHQLIDOOWKHVXSSRUWVZHUHWRWDOO\\UHPRYHG LH
EURNHQ WKHSLSLQJKDVDFFHSWDEOHPDUJLQWRFDUU\\WKHORDGRIWKHYHVVHO1HYHUWKHOHVVIRUSODQWVDSSO\\LQJ
IRU ORQJ WHUP OLIH H[WHQVLRQ LH EH\\RQG  \\HDUV  WKH 86 15& KDV UHFHQWO\\ EHHQ UHTXHVWLQJ D UH
DVVHVVPHQWRIWKH539VWUXFWXUDOVWHHOVXSSRUWVEDVHGRQDIUDFWXUHPHFKDQLFVHYDOXDWLRQWRDFFRXQWIRU
QHXWURQHPEULWWOHPHQW
7KHJRDORIWKHIUDFWXUHPHFKDQLFVDQDO\\VLVLQWKLVUHSRUWIRU6W/XFLH8QLWVDQGZDVWRGHPRQVWUDWH
WKDWWKHFDOFXODWHGFULWLFDOIODZVL]HVEDVHGRQ\\HDUVRIQHXWURQHPEULWWOHPHQWDUHVXIILFLHQWO\\ODUJH
LHIODZWROHUDQW DVFRPSDUHGWR>



@DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
>
@DFH7KHVHSUHYLRXVO\\
PHQWLRQHGDOORZDEOHIODZVL]HVZHUHGHVFULEHGLQGHWDLOLQ6HFWLRQRIWKLVUHSRUW
7KHUHDUHILYHFRPSRQHQWVZLWKLQWKH6W/XFLH539VXSSRUWV\\VWHPWKDWZHUHDQDO\\]HGYLDWKHIUDFWXUH
PHFKDQLFVDSSURDFKGHVFULEHGLQ185(*7KHILYHFRPSRQHQWVDUHWKH'KRUL]RQWDOSODWHDQG'
YHUWLFDOSODWHDWWKHWRSRIWKHKRUL]RQWDOVXSSRUWWKH'KRUL]RQWDOSODWHDWWKHERWWRPRIWKHKRUL]RQWDO
VXSSRUWWKHEROWVZKLFKFRQQHFWWKHFROXPQDQGERWWRPRIWKHKRUL]RQWDOVXSSRUWDQGWKHEROWVDWWKH
VRFNHWVOLGHUHVWUDLQLQJSODWHV7KHVHILYHFRPSRQHQWVZHUHFRQVLGHUHGIRUWKHFULWLFDOIODZVL]HFDOFXODWLRQV
EHFDXVH WKHVH ORFDWLRQV FRXOG H[SHULHQFH WHQVLOH VWUHVVHV DQG KLJK HPEULWWOHPHQW HIIHFWV 7KH RWKHU
FRPSRQHQWVVXFKDVWKHEDVHSODWHDQFKRUEROWVFROXPQDQGRWKHUZHOGHGSODWHVZLWKLQWKH539VXSSRUW
V\\VWHPZLOOEHERXQGHGE\\RUDUHUHSUHVHQWHGE\\WKHILYHFRPSRQHQWVPHQWLRQHGSUHYLRXVO\\ WKHVHRWKHU
FRPSRQHQWVZHUHGLVFXVVHGLQWKHYDULRXVVXEVHFWLRQVRI6HFWLRQ 7KHFULWLFDOIODZVL]HVIRUHDFKRIWKH
ILYHFRPSRQHQWVDUHEDVHGRQWKHODWHVWSODQWVSHFLILFVWUHVVHVZHOGLQJUHVLGXDOVWUHVVRSHUDWLQJFRQGLWLRQ
WHPSHUDWXUHVQHXWURQHPEULWWOHPHQWIRUDQGFDOHQGDU\\HDUVRIRSHUDWLRQVKLIWLQ1'77EDVHGRQ
)LJXUHRI185(* UHSURGXFHGDV)LJXUHKHUHLQ DQGWKHODWHVWVWUHVVLQWHQVLW\\IDFWRUVXVHG
LQWKHLQGXVWU\\>



@DFH
7KHFULWLFDOIODZVL]HVIRUWKH539VXSSRUWFRPSRQHQWVDUHGHWHUPLQHGIRUDQGFDOHQGDU\\HDUVRI
RSHUDWLRQLQ6HFWLRQWKURXJK6HFWLRQIRUYDULRXVIODZVKDSHVWKHOLPLWLQJFULWLFDOIODZVL]HIRUHDFK
FRPSRQHQW LV SURYLGHG LQ 7DEOH D DQG 7DEOH E$ VXPPDU\\ RI FRQVHUYDWLVPV LQFOXGHG LQ WKH
FDOFXODWLRQRIWKHFULWLFDOIODZVL]HVDUHSURYLGHGLQ6HFWLRQ7KHFULWLFDOIODZVL]HUHSUHVHQWVWKHODUJHVW
IODZVL]HWKDWUHVXOWVIURPHTXDWLQJWKHDSSOLHGVWUHVVLQWHQVLW\\IDFWRUWRWKHFRPSRQHQWVSHFLILFPDWHULDO
IUDFWXUHWRXJKQHVVDQGWKLVIODZVL]HLVFRPSDUHGDJDLQVW>

@DFH
)RUWKHZHOGHGSODWHVWKDWZHUHDQDO\\]HGWKHFULWLFDOIODZVL]HVIRUWKHUDQJHRISRVWXODWHGIODZVL]HV DVSHFW
UDWLRVRIDQGLQILQLWHO\\ORQJHGJHIODZV DUHODUJHUWKDQWKH>






@DFH(YHQZLWKDOOWKHVHFRQVHUYDWLVPV
WKHVHFULWLFDOIODZVL]HVDUHGHHPHGWREHDFFHSWDEOH
)RUWKHVLQJOHHGJHIODZLQWKHEROWVDWWKHVRFNHWVOLGHDVVHPEO\\DQGWKHVWUDLJKWIURQWDQGVHPLFLUFXODU
IURQWFLUFXPIHUHQWLDOSRVWXODWHGIODZVLQWKHEROWVZKLFKFRQQHFWWKHFROXPQWRWKHERWWRPRIWKHKRUL]RQWDO
VXSSRUWWKHFULWLFDOIODZVL]HVDUHDOODERYHWKH>





@DFH(YHQZLWKDOOWKHVHFRQVHUYDWLVPVWKHVHFULWLFDOIODZVL]HVDUHGHHPHG
WREHDFFHSWDEOH>

@DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
>


@DFH
*HQHUDOO\\ VWDWHG DOO FDOFXODWHG FULWLFDO IODZ VL]HV LQ WKLV UHSRUW ZRXOG >








@DFH
%DVHGRQWKHGLVFXVVLRQVDERYHDQGWKHUHVXOWVSURYLGHGLQWKLVUHSRUWLWLVFRQFOXGHGWKDWWKH539VXSSRUWV
DW6W/XFLH8QLWVDQGDUHVWUXFWXUDOO\\VWDEOH LHIODZWROHUDQW FRQVLGHULQJFDOHQGDU\\HDUV ()3< 
RI UDGLDWLRQ HPEULWWOHPHQW HIIHFWV DQG D VXIILFLHQW OHYHO RI IODZ WROHUDQFH LV GHPRQVWUDWHG WR MXVWLI\\
FRQWLQXLQJWKHFXUUHQWH[DPLQDWLRQRIWKH539VWUXFWXUDOVWHHOVXSSRUWV,QFRQFOXVLRQWKHORVVRIIUDFWXUH
WRXJKQHVVGXHWRQHXWURQHPEULWWOHPHQWRYHU\\HDUVLVQRWVLJQLILFDQWDQGWKHUHIRUHWKH6W/XFLH8QLWV
DQG539VWUXFWXUDOVWHHOVXSSRUWVGRQRWUHTXLUHPRUHIUHTXHQWLQVSHFWLRQVWKDQWKRVHUHTXLUHGE\\WKH
FXUUHQW$60(6HFWLRQ;,LQVSHFWLRQSURJUDP


 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
7DEOHD6XPPDU\\RI6W/XFLH8QLW5396XSSRUW&ULWLFDO)ODZ6L]HV
)UDFWXUH
7RXJKQHVV
/RDGLQJ
&RQGLWLRQ
&ULWLFDO)ODZ6L]H D 
7RSRI+RUL]RQWDO
6XSSRUW+/-+RUL]RQWDO
3ODWH DW  E 
7RSRI+RUL]RQWDO
6XSSRUW+/-9HUWLFDO
3ODWH DW  E 
%RWWRPRI+RUL]RQWDO
6XSSRUW+/-+RUL]RQWDO
3ODWH DW  E 
%ROWV&RQQHFWLQJ
&ROXPQDQG%RWWRP
RI+RUL]RQWDO
6XSSRUW D5 
%ROWVDW6RFNHW6OLGH
5HVWUDLQLQJ3ODWH
D' 
)UDFWXUH7RXJKQHVV
IRU()3<
ZLWKRXW$QDO\\WLFDO
8QFHUWDLQWLHV 
1RUPDO





8SVHW




)DXOWHG




)UDFWXUH7RXJKQHVV
IRU()3<
ZLWKRXW$QDO\\WLFDO
8QFHUWDLQWLHV 
1RUPDO





8SVHW




)DXOWHG




)UDFWXUH7RXJKQHVV
IRU()3<
ZLWK$QDO\\WLFDO
8QFHUWDLQWLHV 
1RUPDO





8SVHW




)DXOWHG




)UDFWXUH7RXJKQHVV
IRU()3<
 ZLWK$QDO\\WLFDO
8QFHUWDLQWLHV 
1RUPDO





8SVHW




)DXOWHG





6HFWLRQ;,$OORZDEOH)ODZ6L]H



1RWH F 






 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
1RWHVIRU7DEOHD
D  7KHFULWLFDOIODZVL]HVDUHGHWHUPLQHGE\\VHWWLQJWKHDSSOLHGVWUHVVLQWHQVLW\\IDFWRUHTXDOWRWKHIUDFWXUHWRXJKQHVVDQGEDFNFDOFXODWLQJIODZVL]H7KHFULWLFDOIODZVL]HLVDW
IODZGHSWKRYHUWKLFNQHVVUDWLR IRUSODWHVDQGD' IODZGHSWKRYHUGLDPHWHUUDWLR DQGD5 IODZGHSWKRYHUUDGLXVUDWLR IRUEROWV7KHUHDUHQRVLJQLILFDQWWUDQVLHQWVRUWKHUPDO
F\\FOLQJWKDWZRXOGFDXVHDQ\\FUDFNJURZWKRYHUWLPH7KHFDOFXODWHGFULWLFDOIODZVL]HVDUHFRPSDUHGDJDLQVWWKH6HFWLRQ;,DOORZDEOHIODZVL]HV SHUPLVVLEOHSHU6HFWLRQ
RI185(* ,QDOOFDVHVWKHFULWLFDOIODZVL]HVDUHODUJHUWKDQWKH6HFWLRQ;,DOORZDEOHIODZVL]HVWKHUHE\\FRQFOXGLQJWKDWWKH6W/XFLH539VXSSRUWFRPSRQHQWVFRQWLQXH
WREHVWUXFWXUDOO\\VWDEOH LHIODZWROHUDQW FRQVLGHULQJ\\HDUVRIUDGLDWLRQRUHPEULWWOHPHQWHIIHFWVRQWKHVXSSRUWV$OVRWKHVHIODZVZRXOGKDYHEHHQGHWHFWHGGXULQJLQLWLDO
IDEULFDWLRQDQGUHSDLUHG
E  7KLVORFDWLRQFRQVLGHUVZHOGLQJUHVLGXDOVWUHVV
F  7KH6HFWLRQ;,DOORZDEOHIODZVL]HEDVHGRQVXUIDFHH[DPLQDWLRQRIEROWVLVOLPLWHGWR'LQOHQJWKIRUDFLUFXPIHUHQWLDOIODZWKXVDFRQWLQXRXVFLUFXPIHUHQWLDOIODZ
LVLQKHUHQWO\\QRWDOORZHG


 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
7DEOHE6XPPDU\\RI6W/XFLH8QLW5396XSSRUW&ULWLFDO)ODZ6L]HV
)UDFWXUH
7RXJKQHVV
/RDGLQJ
&RQGLWLRQ
&ULWLFDO)ODZ6L]H D 
7RSRI+RUL]RQWDO
6XSSRUW+/-+RUL]RQWDO
3ODWH DW  E 
7RSRI+RUL]RQWDO
6XSSRUW+/-9HUWLFDO
3ODWH DW  E 
%RWWRPRI+RUL]RQWDO
6XSSRUW+/-+RUL]RQWDO
3ODWH DW  E 
%ROWV&RQQHFWLQJ
&ROXPQDQG%RWWRP
RI+RUL]RQWDO
6XSSRUW D5 
%ROWVDW6RFNHW6OLGH
5HVWUDLQLQJ3ODWH
D' 
)UDFWXUH7RXJKQHVV
IRU()3<
ZLWKRXW$QDO\\WLFDO
8QFHUWDLQWLHV 
1RUPDO





8SVHW




)DXOWHG




)UDFWXUH7RXJKQHVV
IRU()3<
ZLWKRXW$QDO\\WLFDO
8QFHUWDLQWLHV 
1RUPDO





8SVHW




)DXOWHG




)UDFWXUH7RXJKQHVV
IRU()3<
 ZLWK$QDO\\WLFDO
8QFHUWDLQWLHV 
1RUPDO





8SVHW




)DXOWHG




)UDFWXUH7RXJKQHVV
IRU()3<
 ZLWK$QDO\\WLFDO
8QFHUWDLQWLHV 
1RUPDO





8SVHW




)DXOWHG





6HFWLRQ;,$OORZDEOH)ODZ6L]H



1RWH F 






 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
1RWHVIRU7DEOHE
D  7KHFULWLFDOIODZVL]HVDUHGHWHUPLQHGE\\VHWWLQJWKHDSSOLHGVWUHVVLQWHQVLW\\IDFWRUHTXDOWRWKHIUDFWXUHWRXJKQHVVDQGEDFNFDOFXODWLQJIODZVL]H7KHFULWLFDOIODZVL]HLVDW
IODZGHSWKRYHUWKLFNQHVVUDWLR IRUSODWHVDQGD' IODZGHSWKRYHUGLDPHWHUUDWLR DQGD5 IODZGHSWKRYHUUDGLXVUDWLR IRUEROWV7KHUHDUHQRVLJQLILFDQWWUDQVLHQWVRUWKHUPDO
F\\FOLQJWKDWZRXOGFDXVHDQ\\FUDFNJURZWKRYHUWLPH7KHFDOFXODWHGFULWLFDOIODZVL]HVDUHFRPSDUHGDJDLQVWWKH6HFWLRQ;,DOORZDEOHIODZVL]HV SHUPLVVLEOHSHU6HFWLRQ
RI185(* ,QDOOFDVHVWKHFULWLFDOIODZVL]HVDUHODUJHUWKDQWKH6HFWLRQ;,DOORZDEOHIODZVL]HVWKHUHE\\FRQFOXGLQJWKDWWKH6W/XFLH539VXSSRUWFRPSRQHQWVFRQWLQXH
WREHVWUXFWXUDOO\\VWDEOH LHIODZWROHUDQW FRQVLGHULQJ\\HDUVRIUDGLDWLRQRUHPEULWWOHPHQWHIIHFWVRQWKHVXSSRUWV$OVRWKHVHIODZVZRXOGKDYHEHHQGHWHFWHGGXULQJLQLWLDO
IDEULFDWLRQDQGUHSDLUHG
E  7KLVORFDWLRQFRQVLGHUVZHOGLQJUHVLGXDOVWUHVV
F  7KH6HFWLRQ;,DOORZDEOHIODZVL]HEDVHGRQVXUIDFHH[DPLQDWLRQRIEROWVLVOLPLWHGWR'LQOHQJWKIRUDFLUFXPIHUHQWLDOIODZWKXVDFRQWLQXRXVFLUFXPIHUHQWLDOIODZ
LVLQKHUHQWO\\QRWDOORZHG


 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ

5()(5(1&(6
 861XFOHDU5HJXODWRU\\&RPPLVVLRQ185(*9ROXPH&#xb3;*HQHULF$JLQJ/HVVRQV/HDUQHGIRU
6XEVHTXHQW/LFHQVH5HQHZDO *$//6/5 5HSRUW)LQDO5HSRUW'-XO\\
 861XFOHDU5HJXODWRU\\&RPPLVVLRQ/HVVRQV/HDUQHGIRU6/5
D 861XFOHDU5HJXODWRU\\&RPPLVVLRQ3XEOLF0HHWLQJ&#xb3;6/5&KDQJH'5$)71HZ)(6536/5
6HFWLRQ  DQG$05 IRU,UUDGLDWLRQ RI 59 6WHHO 6XSSRUWV' 0HHWLQJ +HOG 
>$'$06$FFHVVLRQ1XPEHU0/+@
E 86 15& 5HSRUW &#xb3;6XPPDU\\ RI$SULO   7HOHFRQIHUHQFH RQ 7RSLFV 5HODWHG WR /HVVRQV
/HDUQHGIURPWKH5HYLHZRIWKH)LUVW6XEVHTXHQW/LFHQVH5HQHZDO$SSOLFDWLRQ'$SULO
>$'$06$FFHVVLRQ1XPEHU0/)@
 861XFOHDU5HJXODWRU\\&RPPLVVLRQ185(*&#xb3;5HVROXWLRQRI*HQHULF6DIHW\\,VVXHV )RUPHUO\\
HQWLWOHG&#xb3;$3ULRULWL]DWLRQRI*HQHULF6DIHW\\,VVXHV '0DLQ5HSRUWZLWK6XSSOHPHQWV*HQHULF
,VVXH1R&#xb3;5DGLDWLRQ(IIHFWVRQ5HDFWRU9HVVHO6XSSRUWV 5HY '
 861XFOHDU5HJXODWRU\\&RPPLVVLRQ185(*&#xb3;5DGLDWLRQ(IIHFWVRQ5HDFWRU3UHVVXUH9HVVHO
6XSSRUWV'0D\\
 185(*&5&#xb3;,PSDFWRI5DGLDWLRQ(PEULWWOHPHQWRQ,QWHJULW\\RI3UHVVXUH9HVVHO6XSSRUWVIRU
7ZR3:53ODQWV'-DQXDU\\
 :HVWLQJKRXVH /HWWHU &#xb3;6W /XFLH 8QLWV   6XEVHTXHQW /LFHQVH 5HQHZDO 5HDFWRU 3UHVVXUH9HVVHO
6XSSRUWV$VVHVVPHQW'6HSWHPEHU
D /756'$35HYLVLRQ
E /756'$135HYLVLRQ
 :HVWLQJKRXVH 5HSRUW :&$313 5HYLVLRQ  &#xb3;)UDFWXUH 0HFKDQLFV$VVHVVPHQW RI 5HDFWRU
3UHVVXUH9HVVHO6WUXFWXUDO6WHHO6XSSRUWVIRU3RLQW%HDFK8QLWVDQG'6HSWHPEHU
 $PHULFDQ6RFLHW\\RI0HFKDQLFDO(QJLQHHUV $60( &RGH6HFWLRQ;,&#xb3;5XOHVIRU,QVHUYLFH,QVSHFWLRQ
RI1XFOHDU3RZHU3ODQW&RPSRQHQWV'(GLWLRQZLWK$GGHQGD
 0HPRUDQGXPVE\\WKH861XFOHDU5HJXODWRU\\&RPPLVVLRQ5HJDUGLQJ5HVROXWLRQRI*6,DVFLWHG
LQ185(*>$'$06$FFHVVLRQ1XPEHU0/@
D 0HPRUDQGXPIRU-DPHV07D\\ORUIURP'DYLG/0RUULVRQ&#xb3;5HVROXWLRQRI*HQHULF6DIHW\\,VVXH

5DGLDWLRQ(IIHFWVRQ5HDFWRU9HVVHO6XSSRUWV
'0D\\ SDJHV 
E 0HPRUDQGXP IRU -RKQ 7 /DUNLQV IURP -RVHSK$ 0XUSK\\ &#xb3;3URSRVHG 5HVROXWLRQ RI *6,
 
5DGLDWLRQ(IIHFWVRQ5HDFWRU3UHVVXUH9HVVHO6XSSRUWV
'-XQH SDJHV  (QFORVXUHV
SDJHV 
(%$6&26WUXFWXUDO6WHHO6SHFLILFDWLRQV
D )/25HYLVLRQ&#xb3;6WUXFWXUDO6WHHO6DLQW/XFLH8QLW1R''HFHPEHU
E )/2 5HYLVLRQ $GGHQGXP &#xb3;$GGHQGXP WR (%$6&2 )/2 )RU &ODVV,
6WUXFWXUHVDQG&RPSRQHQWV'-DQXDU\\
F )/25HYLVLRQ&#xb3;6WUXFWXUDO6WHHO6DLQW/XFLH8QLW1R')HEUXDU\\
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
6W/XFLH8QLWVDQG'UDZLQJV
D (%$6&2 'UDZLQJ * 6KHHWV  DQG  5HYLVLRQ  &#xb3;6W /XFLH 3ODQW 8QLW  5HDFWRU
%XLOGLQJ(TXLSPHQW6XSSRUWV'
E (%$6&2'UDZLQJ*6KHHWRI5HYLVLRQ&#xb3;6W/XFLH3ODQW8QLW5HDFWRU%XLOGLQJ
(TXLSPHQW6XSSRUWV'
F >

@DFH
G >

@DFH
H >

@DFH
I >

@DFH
J >

@DFH
K >

@DFH
$670 $D &#xb3;6WDQGDUG 6SHFLILFDWLRQ IRU +LJK6WUHQJWK /RZ$OOR\\ 6WUXFWXUDO 0DQJDQHVH
9DQDGLXP6WHHO'
$670$ &#xb3;6WDQGDUG 6SHFLILFDWLRQ IRU 3UHVVXUH 9HVVHO 3ODWHV$OOR\\ 6WHHO 4XHQFKHG DQG
7HPSHUHG0DQJDQHVH0RO\\EGHQXPDQG0DQJDQHVH0RO\\EGHQXP1LFNHO'
$670$&#xb3;6WDQGDUG6SHFLILFDWLRQIRU+LJK6WUHQJWK%ROWVIRU6WUXFWXUDO6WHHO-RLQWV'
>

@DFH
>

@DFH
$60(&RGH6HFWLRQ,,,'LYLVLRQ+/-$SSHQGLFHV&#xb3;5XOHVIRU&RQVWUXFWLRQRI1XFOHDU3RZHU3ODQW
&RPSRQHQWV'(GLWLRQ
$60(6HFWLRQ;,&RGH&DVH1&#xb3;'LUHFW8VHRI0DVWHU)UDFWXUH7RXJKQHVV&XUYHIRU3UHVVXUH
5HWDLQLQJ0DWHULDOVRI&ODVV9HVVHOV6HFWLRQ;,'LYLVLRQ'$SSURYDO'DWH6HSWHPEHU
&#xb3;7HFKQLFDO%DVLVIRU$60(&RGH&DVH15HYLVLRQ 053 'LUHFW8VHRI0DVWHU&XUYH
)UDFWXUH7RXJKQHVV&XUYHIRU3UHVVXUH5HWDLQLQJ0DWHULDOVRI&ODVV9HVVHOV6HFWLRQ;,'2FWREHU

>

@DFH
:HVWLQJKRXVH 5HSRUW :&$3 5HYLVLRQ $ &#xb3;/LFHQVLQJ 5HQHZDO (YDOXDWLRQ $JLQJ
0DQDJHPHQWIRU5HDFWRU&RRODQW6\\VWHP6XSSRUWV''HFHPEHU
>

@DFH
 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

:HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

:&$313
'HFHPEHU

5HYLVLRQ
251/70&#xb3;/RZ7HPSHUDWXUH,UUDGLDWLRQ(PEULWWOHPHQWRI5HDFWRU3UHVVXUH9HVVHO6WHHOV'
2DN5LGJH1DWLRQDO/DERUDWRU\\0D\\
861XFOHDU5HJXODWRU\\&RPPLVVLRQ5HJXODWRU\\*XLGH&#xb3;&DOFXODWLRQDODQG'RVLPHWU\\0HWKRGV
IRU'HWHUPLQLQJ3UHVVXUH9HVVHO1HXWURQ)OXHQFH'2IILFHRI1XFOHDU5HJXODWRU\\5HVHDUFK0DUFK

:HVWLQJKRXVH5HSRUW:&$313$5HYLVLRQ&#xb3;)OXHQFH'HWHUPLQDWLRQZLWK5$37250*
DQG)(55(7'-XO\\
6W /XFLH 8QLW  8SGDWHG )LQDO 6DIHW\\$VVHVVPHQW 5HSRUW 8)6$5 $SSHQGL[ + &#xb3;$QDO\\VLV RI
5HDFWRU6XSSRUW6WUXFWXUH6W/XFLH3ODQW'$PHQGPHQW0D\\
)3/6SHFLILFDWLRQ5HYLVLRQ&#xb3;'HVLJQ6SHFLILFDWLRQIRU0DLQ&RRODQW3LSHDQG)LWWLQJV
IRU6W/XFLH8QLW'-XQHDVVXSSOLHGYLD36/:(&5HYLVLRQ&#xb3;'HVLJQ,QSXW
7UDQVPLWWDOIRU:6D$OOR\\/RFDWLRQVWR6XSSRUWWKH6W/XFLH8QLWDQG8QLW6XEVHTXHQW
/LFHQVH5HQHZDO')HEUXDU\\
>
@DFH
$60(&RGH6HFWLRQ,,3DUW'&#xb3;3URSHUWLHV0DWHULDOV'(GLWLRQZLWK$GGHQGD
$60(%RLOHU 3UHVVXUH9HVVHO&RGH6HFWLRQ;,&#xb3;5XOHVIRU,QVHUYLFH,QVSHFWLRQRI1XFOHDU3RZHU
3ODQW&RPSRQHQWV'(GLWLRQ
$PHULFDQ3HWUROHXP,QVWLWXWH$3,$60())6&#xb3;)LWQHVV)RU6HUYLFH'-XQH
+LURVKL7DGD3DXO&3DULV*HRUJH5,UZLQ&#xb3;7KH6WUHVV$QDO\\VLVRI&UDFNV+DQGERRN'7KLUG(GLWLRQ
$60(3UHVV1HZ<RUN
$PHULFDQ:HOGLQJ6RFLHW\\ $:6 '(LJKW(GLWLRQ&#xb3;6SHFLILFDWLRQVIRU:HOGHG+LJKZD\\DQG
5DLOZD\\%ULGJHV'
$PHULFDQ:HOGLQJ6RFLHW\\ $:6 '&#xb3;6WUXFWXUDO:HOGLQJ&RGH'

 
7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ
:&$3135HYLVLRQ
1RQ3URSULHWDU\\&ODVV
7KLVSDJHZDVDGGHGWRWKHTXDOLW\\UHFRUGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQDQGVKDOOQRWEHFRQVLGHUHGLQWKHSDJHQXPEHULQJRIWKLVGRFXPHQW
$SSURYDO,QIRUPDWLRQ
$XWKRU$SSURYDO6FRWW$OH[DQGULD0'HF
$XWKRU$SSURYDO+DOO*RUGRQ='HF
9HULILHU$SSURYDO'HPHWUL*HRUJH-'HF
5HYLHZHU$SSURYDO%LVFHJOLD1LFKRODV0'HF
5HYLHZHU$SSURYDO+DZN$QGUHZ('HF
5HYLHZHU$SSURYDO+DOO-%ULDQ'HF
0DQDJHU$SSURYDO3DWWHUVRQ/\\QQ'HF
)LOHVDSSURYHGRQ'HF}}

Latest revision as of 02:53, 7 February 2025

Subsequent License Renewal Application Revision - Documents WCAP-18623-P/NP Revision 1 Submittal
ML22103A133
Person / Time
Site: Saint Lucie  NextEra Energy icon.png
Issue date: 04/13/2022
From: Maher W
Florida Power & Light Co
To:
Document Control Desk, Office of Nuclear Reactor Regulation
Shared Package
ML22103A132 List:
References
L-2022-046 WCAP-18623-NP, Rev 1
Download: ML22103A133 (117)
v • d • e


Text

Florida Power & Light Company





15430 Endeavor Drive, Jupiter, FL 33478 ENCLOSURE 3 CONTAINS INFORMATION REQUESTED TO BE WITHHELD FROM PUBLIC DISCLOSURE UNDER 10 CFR 2.390. UPON SEPARATION FROM ENCLOSURE 3, THIS LETTER IS DECONTROLLED.

April 13, 2022 L-2022-046 10 CFR 54.17 10 CFR 2.390 U.S. Nuclear Regulatory Commission Attn: Document Control Desk 11545 Rockville Pike One White Flint North Rockville, MD 20852-2746 St. Lucie Nuclear Plant Units 1 and 2 Dockets 50-335 and 50-389 Facility Operating Licenses DPR-67 and NPF-16 SUBSEQUENT LICENSE RENEWAL APPLICATION REVISION 1 - DOCUMENTS WCAP-18623-P/NP REVISION 1 SUBMITTAL

References:

1. FPL Letter L-2021-192 dated October 12, 2021 - Subsequent License Renewal Application - Revision 1 (ADAMS Accession No. ML21285A107) 2. U.S. Nuclear Regulatory Commission (NRC) Letter dated September 24, 2021, St. Lucie Plant, Units 1 and 2 - Aging Management Audit Plan Regarding the Subsequent License Renewal Application Review (ADAMS Accession No. ML21245A305)

FPL, owner and licensee for St. Lucie Nuclear Plant (PSL) Units 1 and 2, has submitted a revised subsequent license renewal application (SLRA) for the Facility Operating Licenses for PSL Units 1 and 2 (Reference 1).

During NRCs aging management audit of the SLRA with FPL (Reference 2), FPL agreed to docket Westinghouse Electric Company LLC (Westinghouse) proprietary (P) document WCAP-18623-P, St. Lucie Units 1 & 2 Subsequent License Renewal: Fracture Mechanics Assessment of Reactor Pressure Vessel Structural Steel Supports (December 2021 Revision 1 ). This proprietary document, its non-proprietary (NP) version, and accompanying withholding Affidavit are enclosed.

contains information proprietary to Westinghouse supported by an Affidavit executed by Westinghouse, the owner of the information. The Enclosure 1 Affidavit sets forth the basis on which the information may be withheld from public disclosure by the NRC, and addresses with specificity the considerations listed in paragraph (b)(4) of 10 CFR 2.390. Accordingly, it is respectfully applied for that the information that is proprietary to Westinghouse be withheld from public disclosure in accordance with 10 CFR 2.390. Correspondence with respect to the copyright or proprietary aspects of the information or Affidavit should be addressed to the Westinghouse representative identified in their Affidavit.

Should you have any questions regarding this submittal, please contact me at (561) 304-6256 or William.Maher@fpl.com.

St. Lucie Nuclear Plant Units 1 and 2 Dockets 50-335 and 50-389 L-2022-046 Page 2 of 2 ENCLOSURE 3 CONTAINS INFORMATION REQUESTED TO BE WITHHELD FROM PUBLIC DISCLOSURE UNDER 10 CFR 2.390. UPON SEPARATION FROM ENCLOSURE 3, THIS LETTER IS DECONTROLLED.

I declare under penalty of perjury that the foregoing is true and correct.

Executed on the 13th day of April 2022.

Sincerely, William D. Maher Licensing Director - Nuclear Licensing Projects Cc: (w/o Enclosure 3)

Regional Administrator, USNRC, Region II Senior Resident Inspector, USNRC, St. Lucie Plant Chief, USNRC, Division of New and Renewed Licenses Senior Project Manager, USNRC, Division of New and Renewed Licenses Chief, Bureau of Radiation Control, Florida Department of Health

Enclosures:

Westinghouse Affidavit CAW-22-011 Supporting Withholding Proprietary Information from Public Disclosure Pursuant to 10 CFR 2.390 WCAP-18623-NP, St. Lucie Units 1 & 2 Subsequent License Renewal: Fracture Mechanics Assessment of Reactor Pressure Vessel Structural Steel Supports (December 2021 Revision 1) [Public Version]

WCAP-18623-P, St. Lucie Units 1 & 2 Subsequent License Renewal: Fracture Mechanics Assessment of Reactor Pressure Vessel Structural Steel Supports (December 2021 Revision 1) [Contains Information Requested to be Withheld From Public Disclosure Under 10 CFR 2.390]

William Maher Digitally signed by William Maher DN: cn=William Maher, o=Nuclear, ou=Nuclear Licensing Projects, email=william.maher@fpl.com, c=US Date: 2022.04.13 08:56:51 -04'00'

St. Lucie Nuclear Plant Units 1 and 2 Dockets 50-335 and 50-389 L-2022-046 Enclosure 1











(1&/2685(









HVWLQJKRXVH$IILGDYLW&$:6XSSRUWLQJ:LWKKROGLQJ

3URSULHWDU\\,QIRUPDWLRQIURP3XEOLF'LVFORVXUH3XUVXDQWWR

&)5







WRWDOSDJHVLQFOXGLQJWKLVFRYHUVKHHW

7KLVUHFRUGZDVILQDODSSURYHGRQ30 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

$)),'$9,7&$:

3DJHRI



&RPPRQZHDOWKRI3HQQV\\OYDQLD

&RXQW\\RI%XWOHU



 

,&DPLOOH=R]XOD0DQDJHU5HJXODWRU\\&RPSOLDQFHDQG&RUSRUDWH/LFHQVLQJKDYHEHHQ

VSHFLILFDOO\\GHOHJDWHGDQGDXWKRUL]HGWRDSSO\\IRUZLWKKROGLQJDQGH[HFXWHWKLV$IILGDYLWRQ

EHKDOIRI:HVWLQJKRXVH(OHFWULF&RPSDQ\\//& :HVWLQJKRXVH 



 

,DPUHTXHVWLQJWKHSURSULHWDU\\SRUWLRQVRI:&$335HYLVLRQEHZLWKKHOGIURP

SXEOLFGLVFORVXUHXQGHU&)5



 

,KDYHSHUVRQDONQRZOHGJHRIWKHFULWHULDDQGSURFHGXUHVXWLOL]HGE\\:HVWLQJKRXVHLQ

GHVLJQDWLQJLQIRUPDWLRQDVDWUDGHVHFUHWSULYLOHJHGRUDVFRQILGHQWLDOFRPPHUFLDORU

ILQDQFLDOLQIRUPDWLRQ



 

3XUVXDQWWR&)5WKHIROORZLQJLVIXUQLVKHGIRUFRQVLGHUDWLRQE\\WKH&RPPLVVLRQLQ

GHWHUPLQLQJZKHWKHUWKHLQIRUPDWLRQVRXJKWWREHZLWKKHOGIURPSXEOLFGLVFORVXUHVKRXOGEH

ZLWKKHOG

L 

7KHLQIRUPDWLRQVRXJKWWREHZLWKKHOGIURPSXEOLFGLVFORVXUHLVRZQHGDQGKDVEHHQ

KHOGLQFRQILGHQFHE\\:HVWLQJKRXVHDQGLVQRWFXVWRPDULO\\GLVFORVHGWRWKHSXEOLF

LL 

7KHLQIRUPDWLRQVRXJKWWREHZLWKKHOGLVEHLQJWUDQVPLWWHGWRWKH&RPPLVVLRQLQ

FRQILGHQFHDQGWR:HVWLQJKRXVH¶VNQRZOHGJHLVQRWDYDLODEOHLQSXEOLFVRXUFHV

LLL 

HVWLQJKRXVHQRWHVWKDWDVKRZLQJRIVXEVWDQWLDOKDUPLVQRORQJHUDQDSSOLFDEOH

FULWHULRQIRUDQDO\\]LQJZKHWKHUDGRFXPHQWVKRXOGEHZLWKKHOGIURPSXEOLF

GLVFORVXUH1HYHUWKHOHVVSXEOLFGLVFORVXUHRIWKLVSURSULHWDU\\LQIRUPDWLRQLVOLNHO\\WR

FDXVHVXEVWDQWLDOKDUPWRWKHFRPSHWLWLYHSRVLWLRQRI:HVWLQJKRXVHEHFDXVHLWZRXOG

HQKDQFHWKHDELOLW\\RIFRPSHWLWRUVWRSURYLGHVLPLODUWHFKQLFDOHYDOXDWLRQ

MXVWLILFDWLRQVDQGOLFHQVLQJGHIHQVHVHUYLFHVIRUFRPPHUFLDOSRZHUUHDFWRUVZLWKRXW

FRPPHQVXUDWHH[SHQVHV$OVRSXEOLFGLVFORVXUHRIWKHLQIRUPDWLRQZRXOGHQDEOH

RWKHUVWRXVHWKHLQIRUPDWLRQWRPHHW15&UHTXLUHPHQWVIRUOLFHQVLQJGRFXPHQWDWLRQ

ZLWKRXWSXUFKDVLQJWKHULJKWWRXVHWKHLQIRUPDWLRQ

7KLVUHFRUGZDVILQDODSSURYHGRQ30 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

$)),'$9,7&$:

3DJHRI



 

HVWLQJKRXVHKDVSROLFLHVLQSODFHWRLGHQWLI\\SURSULHWDU\\LQIRUPDWLRQ8QGHUWKDWV\\VWHP

LQIRUPDWLRQLVKHOGLQFRQILGHQFHLILWIDOOVLQRQHRUPRUHRIVHYHUDOW\\SHVWKHUHOHDVHRI

ZKLFKPLJKWUHVXOWLQWKHORVVRIDQH[LVWLQJRUSRWHQWLDOFRPSHWLWLYHDGYDQWDJHDVIROORZV





D 

7KHLQIRUPDWLRQUHYHDOVWKHGLVWLQJXLVKLQJDVSHFWVRIDSURFHVV RU

FRPSRQHQWVWUXFWXUHWRROPHWKRGHWF ZKHUHSUHYHQWLRQRILWVXVHE\\DQ\\

RI:HVWLQJKRXVH VFRPSHWLWRUVZLWKRXWOLFHQVHIURP:HVWLQJKRXVH

FRQVWLWXWHVDFRPSHWLWLYHHFRQRPLFDGYDQWDJHRYHURWKHUFRPSDQLHV





E 

,WFRQVLVWVRIVXSSRUWLQJGDWDLQFOXGLQJWHVWGDWDUHODWLYHWRDSURFHVV RU

FRPSRQHQWVWUXFWXUHWRROPHWKRGHWF WKHDSSOLFDWLRQRIZKLFKGDWD

VHFXUHVDFRPSHWLWLYHHFRQRPLFDGYDQWDJH HJE\\RSWLPL]DWLRQRULPSURYHG

PDUNHWDELOLW\\ 





F 

,WVXVHE\\DFRPSHWLWRUZRXOGUHGXFHKLVH[SHQGLWXUHRIUHVRXUFHVRULPSURYH

KLVFRPSHWLWLYHSRVLWLRQLQWKHGHVLJQPDQXIDFWXUHVKLSPHQWLQVWDOODWLRQ

DVVXUDQFHRITXDOLW\\RUOLFHQVLQJDVLPLODUSURGXFW





G 

,WUHYHDOVFRVWRUSULFHLQIRUPDWLRQSURGXFWLRQFDSDFLWLHVEXGJHWOHYHOVRU

FRPPHUFLDOVWUDWHJLHVRI:HVWLQJKRXVHLWVFXVWRPHUVRUVXSSOLHUV





H 

,WUHYHDOVDVSHFWVRISDVWSUHVHQWRUIXWXUH:HVWLQJKRXVHRUFXVWRPHUIXQGHG

GHYHORSPHQWSODQVDQGSURJUDPVRISRWHQWLDOFRPPHUFLDOYDOXHWR

HVWLQJKRXVH





I 

,WFRQWDLQVSDWHQWDEOHLGHDVIRUZKLFKSDWHQWSURWHFWLRQPD\\EHGHVLUDEOH



 

7KHDWWDFKHGGRFXPHQWVDUHEUDFNHWHGDQGPDUNHGWRLQGLFDWHWKHEDVHVIRUZLWKKROGLQJ7KH

MXVWLILFDWLRQIRUZLWKKROGLQJLVLQGLFDWHGLQERWKYHUVLRQVE\\PHDQVRIORZHUFDVHOHWWHUV D 

WKURXJK I ORFDWHGDVDVXSHUVFULSWLPPHGLDWHO\\IROORZLQJWKHEUDFNHWVHQFORVLQJHDFKLWHPRI

LQIRUPDWLRQEHLQJLGHQWLILHGDVSURSULHWDU\\RULQWKHPDUJLQRSSRVLWHVXFKLQIRUPDWLRQ7KHVH

ORZHUFDVHOHWWHUVUHIHUWRWKHW\\SHVRILQIRUPDWLRQ:HVWLQJKRXVHFXVWRPDULO\\KROGVLQ

FRQILGHQFHLGHQWLILHGLQ6HFWLRQV  D WKURXJK I RIWKLV$IILGDYLW

7KLVUHFRUGZDVILQDODSSURYHGRQ30 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

$)),'$9,7&$:

3DJHRI

,GHFODUHWKDWWKHDYHUPHQWVRIIDFWVHWIRUWKLQWKLV$IILGDYLWDUHWUXHDQGFRUUHFWWRWKHEHVWRIP\\

NQRZOHGJHLQIRUPDWLRQDQGEHOLHI,GHFODUHXQGHUSHQDOW\\RISHUMXU\\WKDWWKHIRUHJRLQJLVWUXHDQG

FRUUHFW

([HFXWHGRQ

BBBBBBBBBBBBBBBBBBBBBBBBBBBBB



6LJQHGHOHFWURQLFDOO\\E\\

&DPLOOH=R]XOD

5HJXODWRU\\&RPSOLDQFH 

&RUSRUDWH/LFHQVLQJ

BBBBBBBBBBBBBBBBBBBBBBBBBB

St. Lucie Nuclear Plant Units 1 and 2 Dockets 50-335 and 50-389 L-2022-046 Enclosure 2











(1&/2685(









&$3136W/XFLH8QLWV 6XEVHTXHQW/LFHQVH

5HQHZDO)UDFWXUH0HFKDQLFV$VVHVVPHQWRI5HDFWRU3UHVVXUH

9HVVHO6WUXFWXUDO6WHHO6XSSRUWV 'HFHPEHU5HYLVLRQ 



>3XEOLF9HUVLRQ@







WRWDOSDJHVLQFOXGLQJWKLVFRYHUVKHHW

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU

5HYLVLRQ

6W/XFLH8QLWV 6XEVHTXHQW

/LFHQVH5HQHZDO)UDFWXUH0HFKDQLFV

$VVHVVPHQWRI5HDFWRU3UHVVXUH9HVVHO

6WUXFWXUDO6WHHO6XSSRUWV

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

(OHFWURQLFDOO\\DSSURYHGUHFRUGVDUHDXWKHQWLFDWHGLQWKHHOHFWURQLFGRFXPHQWPDQDJHPHQWV\\VWHP

HVWLQJKRXVH(OHFWULF&RPSDQ\\//&

:HVWLQJKRXVH'ULYH

&UDQEHUU\\7RZQVKLS3$86$

:HVWLQJKRXVH(OHFWULF&RPSDQ\\//&

$OO5LJKWV5HVHUYHG

&$313

5HYLVLRQ

6W/XFLH8QLWV 6XEVHTXHQW/LFHQVH5HQHZDO)UDFWXUH

0HFKDQLFV$VVHVVPHQWRI5HDFWRU3UHVVXUH9HVVHO6WUXFWXUDO

6WHHO6XSSRUWV

'HFHPEHU



$OH[DQGULD06FRWW 

59&9'HVLJQDQG$QDO\\VLV

  • RUGRQ=+DOO 

6WUXFWXUDO'HVLJQDQG$QDO\\VLV



9HULILHU

  • HRUJH-'HPHWUL 

59&9'HVLJQDQG$QDO\\VLV



5HYLHZHUV 1LFKRODV0%LVFHJOLD 



-%ULDQ+DOO 



$QGUHZ(+DZN 





$SSURYHG /\\QQ$3DWWHUVRQ 0DQDJHU

59&9'HVLJQDQG$QDO\\VLV

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

LL

&$313

'HFHPEHU



5HYLVLRQ

)25(:25'

7KLVGRFXPHQWFRQWDLQV:HVWLQJKRXVH(OHFWULF&RPSDQ\\//&SURSULHWDU\\LQIRUPDWLRQDQGGDWDZKLFKKDV

EHHQLGHQWLILHGE\\EUDFNHWV&RGLQJ DFH DVVRFLDWHGZLWKWKHEUDFNHWVVHWVIRUWKWKHEDVLVRQZKLFKWKH

LQIRUPDWLRQLVFRQVLGHUHGSURSULHWDU\\

7KHSURSULHWDU\\LQIRUPDWLRQDQGGDWDFRQWDLQHGLQWKLVUHSRUWZHUHREWDLQHGDWFRQVLGHUDEOH:HVWLQJKRXVH

H[SHQVHDQGLWVUHOHDVHFRXOGVHULRXVO\\DIIHFWRXUFRPSHWLWLYHSRVLWLRQ7KLVLQIRUPDWLRQLVWREHZLWKKHOG

IURPSXEOLFGLVFORVXUHLQDFFRUGDQFHZLWKWKH5XOHVRI3UDFWLFH&)5DQGWKHLQIRUPDWLRQSUHVHQWHG

KHUHLQLVWREHVDIHJXDUGHGLQDFFRUGDQFHZLWK&)5:LWKKROGLQJRIWKLVLQIRUPDWLRQGRHVQRW

DGYHUVHO\\DIIHFWWKHSXEOLFLQWHUHVW

7KLVLQIRUPDWLRQKDVEHHQSURYLGHGIRU\\RXULQWHUQDOXVHRQO\\DQGVKRXOGQRWEHUHOHDVHGWRSHUVRQVRU

RUJDQL]DWLRQVRXWVLGHWKH'LUHFWRUDWHRI5HJXODWLRQDQGWKH$&56ZLWKRXWWKHH[SUHVVZULWWHQDSSURYDORI

HVWLQJKRXVH(OHFWULF&RPSDQ\\//&6KRXOGLWEHFRPHQHFHVVDU\\WRUHOHDVHWKLVLQIRUPDWLRQWRVXFK

SHUVRQVDVSDUWRIWKHUHYLHZSURFHGXUHSOHDVHFRQWDFW:HVWLQJKRXVH(OHFWULF&RPSDQ\\//&ZKLFKZLOO

PDNHWKHQHFHVVDU\\DUUDQJHPHQWVUHTXLUHGWRSURWHFWWKH&RPSDQ\\¶VSURSULHWDU\\LQWHUHVWV

7KHSURSULHWDU\\LQIRUPDWLRQLQWKHEUDFNHWVLVSURYLGHGLQWKHSURSULHWDU\\YHUVLRQRIWKLVUHSRUW :&$3

35HYLVLRQ 





7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

LLL

&$313

'HFHPEHU



5HYLVLRQ

5(&25'2)5(9,6,216

5HYLVLRQ

'DWH

5HYLVLRQ'HVFULSWLRQ



1RYHPEHU

2ULJLQDO,VVXH



'HFHPEHU

,QFRUSRUDWHFXVWRPHUFRPPHQWUHVSRQVHVDQGFORVHWKHRSHQLWHPLQ

5HYLVLRQ





7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

LY

&$313

'HFHPEHU



5HYLVLRQ

7$%/(2)&217(176

(;(&87,9(6800$5<Y



,1752'8&7,21



  • (1(5$/0(7+2'2/2*<



6833257&21),*85$7,210$7(5,$/$1'*(20(75<



/2$',1*&21',7,216$1'675(66$1$/<6,6



7232)+25,=217$/6833257+/-'+25,=217$/3/$7(675(66



7232)+25,=217$/6833257+/-'9(57,&$/3/$7(675(66



%277202)+25,=217$/6833257+/-'+25,=217$/3/$7(675(66



%2/76&211(&7,1*&2/801$1'%277202)+25,=217$/6833257)25&(6$1'

020(176



%2/76$762&.(76/,'(5(675$,1,1*3/$7(6675(66



)5$&785(0(&+$1,&60(7+2'2/2*<



)5$&785(728*+1(66'(7(50,1$7,21



1HXWURQ(PEULWWOHPHQWDQG1LO'XFWLOLW\\7UDQVLWLRQ7HPSHUDWXUHRI5396XSSRUWV



6WUDLQ5DWH(IIHFWV



%XON0DWHULDO7HPSHUDWXUH



,QLWLDO1LO'XFWLOLW\\7UDQVLWLRQ7HPSHUDWXUH



6W/XFLH&0755HYLHZ



(VWLPDWLRQRI8QLUUDGLDWHG)UDFWXUH7RXJKQHVV



([DPSOHRI)UDFWXUH7RXJKQHVV'HWHUPLQDWLRQE\\&XUYH6KLIW$670$IRU6W/XFLH8QLW





$670$ &ROXPQDQG+RUL]RQWDO6XSSRUW&RPSRQHQWVIRU6W/XFLH8QLW 



$670$% 6W/XFLH8QLW 



$670$ %ROWVIRU6W/XFLH8QLWVDQG 



)UDFWXUH7RXJKQHVV5HVXOWV



675(66,17(16,7<)$&7256$1'32678/$7(')/$:6



3ODWH0RGHO



5RXQG%DU0RGHO IRU%ROWV 



$//2:$%/()/$:6,=(6



&5,7,&$/)/$:6,=(&$/&8/$7,215(68/76



7232)+25,=217$/6833257+/-'+25,=217$/3/$7(



%DVH3ODWH



7232)+25,=217$/6833257+/-'9(57,&$/3/$7(



%277202)+25,=217$/6833257+/-'+25,=217$/3/$7(



&ROXPQ



%2/76&211(&7,1*&2/801$1'%277202)+25,=217$/6833257



$QFKRU%ROWV



%2/76$762&.(76/,'(5(675$,1,1*3/$7(6



',6&866,212)&21&/86,216



(9$/8$7,212)&855(17&21',7,216



&+$1*(,1(0%5,77/(0(1729(57,0(



&5,7,&$/)/$:6,=(&21&/86,216



5()(5(1&(6



7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

Y

&$313

'HFHPEHU



5HYLVLRQ

(;(&87,9(6800$5<

$VSODQWVDSSO\\IRU\\HDUOLFHQVXUH 6XEVHTXHQW/LFHQVH5HQHZDO6/5 WKH8QLWHG6WDWHV 86 1XFOHDU

5HJXODWRU\\&RPPLVVLRQ 15& KDVTXHULHGWKHQXFOHDUSRZHUSODQWLQGXVWU\\WRLQYHVWLJDWHWKHLPSDFWRI

QHXWURQHPEULWWOHPHQW UDGLDWLRQHIIHFWV RQWKHUHDFWRUSUHVVXUHYHVVHO 539 VXSSRUWVGXHWRH[WHQGHG

SODQWRSHUDWLRQSDVW\\HDUV7KH8615&KDVUHOHDVHG*HQHULF$JLQJ/HVVRQV/HDUQHG *$// 6/5

UHSRUW185(*>@ZKLFKSURYLGHVLQIRUPDWLRQUHJDUGLQJOLFHQVHUHQHZDOIRU\\HDUV7KLVUHSRUW

GRHVQRWLQFOXGHJXLGDQFHIRUDQDO\\VLVRIORVVRIIUDFWXUHWRXJKQHVVGXHWRLUUDGLDWLRQHPEULWWOHPHQWIRU

VWUXFWXUDOVWHHOVXSSRUWFRPSRQHQWVLQWKHYLFLQLW\\RIWKH539KRZHYHUUHFHQW8615&PHHWLQJVKDYH

SURYLGHG SUHOLPLQDU\\JXLGDQFH RQHYDOXDWLQJLUUDGLDWLRQ HPEULWWOHPHQW RI 539 VWHHO VXSSRUWV>@7KH

UDGLDWLRQ HIIHFWV RQ 539 VXSSRUWV ZHUH SUHYLRXVO\\ LQYHVWLJDWHG DQG UHVROYHG DV SDUW RI *6, LQ

185(* 5HYLVLRQ  >@ 185(* SXEOLVKHG LQ 0D\\   >@ DQG 185(*&5

SXEOLVKHGLQ >@7KHFRQFOXVLRQVLQ185(*5HYLVLRQ>@VWDWHGWKDWWKHVXSSRUWVZHUH

DFFHSWDEOHIRUFRQWLQXHGRSHUDWLRQDQG*6,ZDVUHVROYHG+RZHYHUIRUSODQWVDSSO\\LQJIRU\\HDUOLIH

OLFHQVXUHWKH8615&KDVUHTXHVWHGDUHDVVHVVPHQWRIWKH539VWUXFWXUDOVWHHOVXSSRUWVEDVHGRQD

IUDFWXUHPHFKDQLFVHYDOXDWLRQWRDFFRXQWIRUQHXWURQHPEULWWOHPHQW UDGLDWLRQHIIHFWV 

$VSDUWRI6W/XFLH8QLWVDQG6/5DSSOLFDWLRQ ZKLFKKDVUHFHQWO\\EHHQVXEPLWWHGWRWKH8615& 

DQDVVHVVPHQWRIWKHVWUXFWXUDOVWHHO539VXSSRUWVDVLWSHUWDLQVWRWKHLUUDGLDWLRQDJLQJHIIHFWVIRU\\HDUV

ZDVFRPSOHWHGLQ/756'$>@7KHDVVHVVPHQWLQFOXGHGDWHFKQLFDOMXVWLILFDWLRQWRVXSSRUWDQ

LQVSHFWLRQEDVHGDSSURDFKZKLFKLVSHUPLWWHGE\\WKHSUHGHFLVLRQDOGUDIWLQWHULPVWDIIJXLGDQFH>@DVDQ

DSSURSULDWHPHDQVRIPDQDJLQJWKHLUUDGLDWLRQDJLQJFRQFHUQVWKURXJKWKHVXEVHTXHQWSHULRGRIH[WHQGHG

RSHUDWLRQ7KHDVVHVVPHQWZDVDFRPSDUDWLYHDQDO\\VLVWRWKH3RLQW%HDFK539VWUXFWXUDOVWHHOVXSSRUWV

DQDO\\VLV>@)RU3RLQW%HDFKLWZDVFRQFOXGHGWKDWWKH$60(6HFWLRQ;,,Q6HUYLFH,QVSHFWLRQ ,6, 

SURJUDPLVDVXIILFLHQWDSSURDFKWRPDQDJHWKHUDGLDWLRQHPEULWWOHPHQWHIIHFWVRQWKH539VXSSRUWIRU

FDOHQGDU \\HDUV  HIIHFWLYH IXOO SRZHU \\HDU ()3<  %DVHG RQ WKH FRPSDUDWLYH DVVHVVPHQW LQ

/756'$ LW ZDV GHWHUPLQHG WKDW FRQWLQXHG LQVSHFWLRQV LQ DFFRUGDQFH ZLWK WKH $60(

6HFWLRQ;,>@,6,SURJUDPWRDGGUHVVWKHLUUDGLDWLRQDJLQJHIIHFWVIRUWKH539VXSSRUWVDUHMXVWLILDEOHIRU

WKHVXEVHTXHQWSHULRGRIH[WHQGHGRSHUDWLRQDQGQRDGGLWLRQDOLQVSHFWLRQLVUHTXLUHGEH\\RQGWKHFXUUHQW

$60(6HFWLRQ;,,6,SURJUDPDW6W/XFLH8QLWVDQG

7KHUHSRUWKHUHLQSURYLGHVDSODQWVSHFLILFGHIHQVHLQGHSWKIUDFWXUHPHFKDQLFVDQDO\\VLVRIWKHVWUXFWXUDO

VWHHO 539 VXSSRUWV DQG LQYHVWLJDWLRQ RIWKHLPSDFWRI QHXWURQHPEULWWOHPHQW UDGLDWLRQ HIIHFWV  RI WKH

VXSSRUWVGXHWRH[WHQGHGSODQWRSHUDWLRQSDVW\\HDUVWRVXSSRUWWKHDVVHVVPHQWWKDWZDVFRPSOHWHGLQ

/756'$>@IRU6W/XFLH8QLWVDQG$GHWDLOHGIUDFWXUHPHFKDQLFVHYDOXDWLRQLVSHUIRUPHGRQ

6W/XFLH8QLWVDQG539VWUXFWXUDOVWHHOVXSSRUWVWRFDOFXODWHWKHFULWLFDOIODZVL]HVIROORZLQJWKHJHQHUDO

JXLGDQFHRI$60(6HFWLRQ;,>@WRLQYHVWLJDWHEULWWOHIUDFWXUHRIWKHVWUXFWXUDOVWHHOVXSSRUWVSHU185(*

5HYLVLRQDQG185(*)LYHVHSDUDWHVWUXFWXUDOVWHHOFRPSRQHQWVZLWKLQWKH6W/XFLH8QLWV

DQG539VXSSRUWV\\VWHPZHUHHYDOXDWHG7KHVHFRPSRQHQWVDUHWKH'KRUL]RQWDOSODWHDQG'YHUWLFDO

SODWHDWWKHWRSRIWKHKRUL]RQWDOVXSSRUWWKH'KRUL]RQWDOSODWHDWWKHERWWRPRIWKHKRUL]RQWDOVXSSRUWWKH

EROWVZKLFKFRQQHFWWKHFROXPQDQGERWWRPRIWKHKRUL]RQWDOVXSSRUWDQGWKHEROWVDWWKHVRFNHWVOLGH

UHVWUDLQLQJSODWHV7KHFULWLFDOIODZVL]HVDUHGHWHUPLQHGE\\HTXDWLQJWKHDSSOLHGVWUHVVLQWHQVLW\\IDFWRUWR

WKHPDWHULDOVSHFLILFIUDFWXUHWRXJKQHVV7KHVWUHVVLQWHQVLW\\IDFWRUVZHUHGHWHUPLQHGIRUWKHYDULRXVORDGLQJ

FRPELQDWLRQVIRUWKH6W/XFLH8QLWVDQG539VXSSRUWVDQGIRUDQDUUD\\RIIODZVKDSHV7KHLPSDFWRI

QHXWURQ HPEULWWOHPHQW RQ WKH 539 VWUXFWXUDO VWHHO VXSSRUWV PDWHULDOVSHFLILF IUDFWXUH WRXJKQHVV ZDV

GHWHUPLQHGDWFDOHQGDU\\HDUV ()3< DQGDOVRDW\\HDUVDVDVHQVLWLYLW\\VWXG\\IRUZLWKDQGZLWKRXW

DQDO\\WLFDOXQFHUWDLQWLHVDVVRFLDWHGZLWKWKHPHWKRGRORJ\\XVHGWRFDOFXODWHHPEULWWOHPHQW

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV

YL

&$313

'HFHPEHU



5HYLVLRQ

%DVHGRQWKHPDJQLWXGHRIWKHFDOFXODWHGFULWLFDOIODZVL]HVGLVFXVVHGLQ6HFWLRQRIWKLVUHSRUWLWFDQEH

GHPRQVWUDWHG WKDW WKH FDOFXODWHG FULWLFDO IODZVL]HV EDVHG RQ  FDOHQGDU \\HDUV  ()3<  RI QHXWURQ

HPEULWWOHPHQWDUHVXIILFLHQWO\\ODUJH LHIODZWROHUDQW DVFRPSDUHGWR>









@DFH

)RUWKHILYHFRPSRQHQWVZLWKLQWKH539VXSSRUWV\\VWHPLWZDVFRQFOXGHGWKDWWKHUHZDVHQRXJKPDUJLQ

EHWZHHQWKH>





@DFH%DVHG

RQWKHGHWDLOHGFRQFOXVLRQVLQ6HFWLRQWKH539VXSSRUWV\\VWHPVDW6W/XFLH8QLWVDQGDUHVWUXFWXUDOO\\

VWDEOH LHIODZWROHUDQW FRQVLGHULQJ\\HDUVRIUDGLDWLRQHPEULWWOHPHQWHIIHFWVRQWKHVXSSRUWVDQGD

VXIILFLHQWOHYHORIIODZWROHUDQFHLVGHPRQVWUDWHGWRMXVWLI\\FRQWLQXLQJWKHFXUUHQWH[DPLQDWLRQVRIWKH539

VWUXFWXUDOVWHHOVXSSRUWV

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ



,1752'8&7,21

$VSODQWVDSSO\\IRU\\HDUOLFHQVXUH 6XEVHTXHQW/LFHQVH5HQHZDO6/5 WKH8QLWHG6WDWHV 86 1XFOHDU

5HJXODWRU\\&RPPLVVLRQ 15& KDVTXHULHGWKHQXFOHDUSRZHUSODQWLQGXVWU\\WRLQYHVWLJDWHWKHLPSDFWRI

QHXWURQHPEULWWOHPHQW UDGLDWLRQHIIHFWV RQWKHUHDFWRUSUHVVXUHYHVVHO 539 VXSSRUWVGXHWRH[WHQGHG

SODQWRSHUDWLRQSDVW\\HDUV7KHUDGLDWLRQHIIHFWVRQWKH539VXSSRUWVZHUHSUHYLRXVO\\LQYHVWLJDWHGDQG

UHVROYHGDVSDUWRI*6,LQ185(*5HYLVLRQ>@185(* SXEOLVKHGLQ0D\\ >@

DQG185(*&5 SXEOLVKHGLQ >@7KHFRQFOXVLRQVLQ185(*5HYLVLRQVWDWHGWKDW

WKHVXSSRUWVZHUHDFFHSWDEOHIRUFRQWLQXHGRSHUDWLRQDQG*6,ZDVUHVROYHGDVIROORZV

7KHSUHOLPLQDU\\FRQFOXVLRQLQGLFDWHGWKDWWKHSRWHQWLDOSUREOHP>HPEULWWOHPHQWRIVXSSRUWVGXHWR

UDGLDWLRQHIIHFWV@GLGQRWSRVHDQLPPHGLDWHWKUHDWWRSXEOLFKHDOWKDQGVDIHW\\<<7KHDERYHWHQWDWLYH

UHVXOWV LQGLFDWHG WKDW SODQW VDIHW\\ FRXOG EH PDLQWDLQHG GHVSLWH 5966 >UHDFWRU YHVVHO VXSSRUW

VWUXFWXUHV@UDGLDWLRQGDPDJH<<,QRUGHUWRHQFRPSDVVWKHXQFHUWDLQWLHVLQWKHYDULRXVDQDO\\VHVDQG

SURYLGHDQRYHUDOOFRQVHUYDWLYHDVVHVVPHQWVHYHUDOVWUXFWXUDODQDO\\VHVFRQGXFWHGGHPRQVWUDWHGWKH

IROORZLQJ



3RVWXODWLQJ WKDW RQH RI WKH IRXU 539 VXSSRUWV ZDV EURNHQ LQ D W\\SLFDO 3:5 WKH

UHPDLQLQJVXSSRUWVZRXOGFDUU\\WKHUHDFWRUYHVVHOORDGHYHQXQGHU66(>VDIHVKXWGRZQ

HDUWKTXDNH@VHLVPLFORDGV



,IDOOVXSSRUWVZHUHDVVXPHGWREHWRWDOO\\UHPRYHG LHEURNHQ WKHVKRUWVSDQRI

SLSLQJEHWZHHQWKHYHVVHODQGWKHVKLHOGZDOOZRXOGVXSSRUWWKHORDGRIWKHYHVVHO

7KHUHVXOWVRIWKHDQDO\\VHVYLUWXDOO\\HOLPLQDWHGWKHFRQFHUQIRUERWKUDGLDWLRQHPEULWWOHPHQWDQG

VLJQLILFDQW VWUXFWXUDO GDPDJH IURP D SRVWXODWHG 539 IDLOXUH<< %DVHG RQ WKHVWDII¶V UHJXODWRU\\

DQDO\\VLVWKHLVVXHZDVUHVROYHGZLWKQRQHZUHTXLUHPHQWV&RQVLGHUDWLRQRIDOLFHQVHUHQHZDO

SHULRGRI\\HDUVGLGQRWFKDQJHWKLVFRQFOXVLRQ

%DVHGRQFRQFOXVLRQVLQ185(*DQG8615&0HPRUDQGXPVRQ*6,>@LWZDVFRQFOXGHGWKDW

WKH539VXSSRUWVZHUHQRWDFRQFHUQIRUWKHHQWLUHW\\RILWVSODQWOLIH LHDQG\\HDUV HYHQLQWKH

H[WUHPHFDVHZKHUHDOOWKHVXSSRUWVZHUHWRWDOO\\UHPRYHG LHEURNHQ WKHSLSLQJKDVDFFHSWDEOHPDUJLQ

WRFDUU\\WKHORDGRIWKHYHVVHO+RZHYHUIRUSODQWVDSSO\\LQJIRU\\HDUOLIHOLFHQVXUHWKH8615&KDV

UHFHQWO\\UHTXHVWHGDUHDVVHVVPHQWRIWKH539VWUXFWXUDOVWHHOVXSSRUWVEDVHGRQDIUDFWXUHPHFKDQLFV

HYDOXDWLRQ WR DFFRXQW IRU QHXWURQ HPEULWWOHPHQW >@ 7KH 86 15& *HQHULF$JLQJ /HVVRQV /HDUQHG

*$// 6XEVHTXHQW/LFHQVH5HQHZDO 6/5 UHSRUW185(*>@IRU\\HDUOLFHQVHUHQHZDOGRHVQRW

LQFOXGHJXLGDQFHIRUDQDO\\VLVRIORVVRIIUDFWXUHWRXJKQHVVGXHWRLUUDGLDWLRQHPEULWWOHPHQWIRUVWUXFWXUDO

VWHHOVXSSRUWFRPSRQHQWVLQWKHYLFLQLW\\RIWKH539+RZHYHUUHFHQW8615&PHHWLQJVKDYHSURYLGHG

SUHOLPLQDU\\JXLGDQFHLQ>@ZKLFKVWDWHVWKDW185(*SURYLGHVJHQHUDOJXLGDQFHDQGDQDFFHSWDEOH

DSSURDFKIRUWKHHYDOXDWLRQRIWKHORVVRIIUDFWXUHWRXJKQHVVRIWKH539VXSSRUWVGXHWRUDGLDWLRQHIIHFWV

IRUORQJWHUPRSHUDWLRQ

7KHUH DUH WZR SRWHQWLDO IUDFWXUH PHFKDQLFV VWUDWHJLHV WKDW DUH LGHQWLILHG WR UHVROYH WKH UDGLDWLRQ

HPEULWWOHPHQWFRQFHUQEDVHGRQ185(*DQG185(*2QHDSSURDFKLVWRFRPSDUHWKHORZHVW

VHUYLFHWHPSHUDWXUH /67 ZLWKWKHPDWHULDODGMXVWHGUHIHUHQFHWHPSHUDWXUHFRQVLGHULQJLUUDGLDWLRQHIIHFWV

,IWKH/67LVKLJKHUWKDQWKHPDWHULDODGMXVWHGUHIHUHQFHWHPSHUDWXUHWKHQWKH539VXSSRUWVDUHDFFHSWDEOH

+LVWRULFDOO\\ LW ZDV GHWHUPLQHG WKDW WKH /67 PHWKRG ZRXOG QRW SURYLGH VXIILFLHQW PDUJLQ KHQFH WKLV

PHWKRGRORJ\\ZLOOQRWEHXVHGIRUWKH6W/XFLH539VWUXFWXUDOVWHHOVXSSRUWV

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

7KHVHFRQGDSSURDFKXVHGWRLQYHVWLJDWHEULWWOHIUDFWXUHRIWKHVWUXFWXUDOVWHHOVXSSRUWVSHU185(*

LVWRSHUIRUPDGHWDLOHGIUDFWXUHPHFKDQLFVHYDOXDWLRQLQRUGHUWRFDOFXODWHWKHFULWLFDOIODZVL]HVVLPLODUWR

WKHJHQHUDOJXLGDQFHRI$60(6HFWLRQ;,$SSHQGL[$7KHHYDOXDWLRQFRXOGEHXVHGWRGHPRQVWUDWHWKDW

WKHFDOFXODWHGFULWLFDOIODZVL]HVEDVHGRQ\\HDUVRIQHXWURQHPEULWWOHPHQWDUHVXIILFLHQWO\\ODUJH LHIODZ

WROHUDQW DVFRPSDUHGWR>









@DFH

1RWH WKDW FXUUHQW $60( 6HFWLRQ ;,,:) LQVHUYLFH LQVSHFWLRQ IRU VXSSRUWV UHTXLUHV RQO\\ D YLVXDO

H[DPLQDWLRQ 97 $VGLVFXVVHGLQ6HFWLRQPDJQHWLFSDUWLFOHWHVWLQJ 07 LVUHTXLUHGIRURQHRIWKH

WKUHH539QR))OHVXSSRUWIHHWIRU6W/XFLH8QLWVDQG7KHREMHFWLYHRIWKHDQDO\\VLVLVWRGHPRQVWUDWHD

VXIILFLHQWOHYHORIIODZWROHUDQFHWRMXVWLI\\FRQWLQXLQJWKHFXUUHQWYLVXDOH[DPLQDWLRQV 97 

,WVKRXOGEHQRWHGWKDWDVSDUWRIWKHRYHUDOOUHVROXWLRQRI*6,LQ185(*DGHWDLOHGIUDFWXUH

PHFKDQLFVHYDOXDWLRQZDVSHUIRUPHGLQIRURQHRIWKHSLORWSODQWVLQ185(*&5QDPHO\\

7XUNH\\3RLQW8QLW WKHRWKHUSODQWZDV7URMDQ 7KHFRQFOXVLRQVLQ185(*&5LQGLFDWHGWKDWIRU

WKHPRVWVHYHUHFUHGLEOHORDGLQJ GHDGZHLJKWSOXVODUJHEUHDN/2&$ DWHIIHFWLYHIXOOSRZHU\\HDUV

()3<  LH\\HDUV WKHEHVWHVWLPDWHPLQLPXPFULWLFDOIODZVL]HGHSWKLVLQFKIRUWKHVWUXFWXUDO

VXSSRUWEHDPV)XUWKHUPRUHWKHVWXG\\KDGFRQFOXGHGWKDWFDOFXODWHGIODZVL]HLVLQVHQVLWLYHWRUHDFWRU

RSHUDWLQJWLPHDIWHUa()3<DQGDWVWDUWXS ()3< WKHVL]HLVLQFK7KHVWXG\\LQ185(*&5

DOVRGHPRQVWUDWHGWKDWFRQVLGHULQJXQFHUWDLQWLHVLQWKHIUDFWXUHWRXJKQHVVLQLWLDOQLOGXFWLOLW\\WUDQVLWLRQ

WHPSHUDWXUH 1'77R DQGWKHRSHUDWLQJWHPSHUDWXUHRIWKHVXSSRUWFRPSRQHQWVWKH RQHVWDQGDUG

GHYLDWLRQ  YDOXHV RI WKH FULWLFDO IODZ VL]H DW  ()3< DUH a DQG  LQFK )RU WKH ORDGLQJ FDVH RI

GHDGZHLJKW SOXV VDIH VKXWGRZQ HDUWKTXDNH WKH FULWLFDO IODZVL]H LV VXEVWDQWLDOO\\ ODUJHU  LQFKHV DV

FRPSDUHGZLWKLQFK DW()3<

(YHQ WKRXJK WKH IUDFWXUH PHFKDQLFV VWXG\\ SHUIRUPHG IRU 7XUNH\\ 3RLQW 8QLW  DQG 7URMDQ LQ

185(*&5 FRQGXFWHGLQ KDGFDOFXODWHGVPDOOFULWLFDOIODZVL]HVWKDWFRXOGEHDVRXUFHRI

FRQFHUQIRUEULWWOHIUDFWXUHWKH8615&VWDIILQKDGUHYLHZHGVHYHUDORWKHUVWUXFWXUDODQDO\\VHVLQ

DGGLWLRQ WR WKH IUDFWXUH PHFKDQLFV HYDOXDWLRQ %DVHG RQ WKH 86 15&¶V UHYLHZ RI RWKHU VWUXFWXUDO

FRQVHTXHQFHDQDO\\VLVDILQDOFRQFOXVLRQ DVVWDWHGLQ185(*RI*6, ZDVUHDFKHGWKDWHYHQLI

RQHRIWKH539VXSSRUWVZDVEURNHQLQDSUHVVXUL]HGZDWHUUHDFWRU 3:5 WKHUHPDLQLQJVXSSRUWVZRXOG

VDIHO\\FDUU\\WKH539ORDGXQGHUVHLVPLFHYHQWV7KHVWUXFWXUDODQDO\\VHVDOVRFRQFOXGHGWKDWHYHQLIDOOWKH

539VXSSRUWVZHUHEURNHQWKHVKRUWVSDQRISLSLQJEHWZHHQWKHYHVVHODQGWKHVKLHOGZDOOZRXOGVXSSRUW

WKHORDGRIWKH539

$VDUHVXOWWKHIUDFWXUHPHFKDQLFVHYDOXDWLRQLQ185(*&5FDQEHFRQVLGHUHGDGHIHQVHLQGHSWK

VWXG\\RIWKHVWUXFWXUDOLQWHJULW\\RIWKH539VXSSRUWVDVVXSSOHPHQWHGE\\WKHVWUXFWXUDODQDO\\VLVZKLFK

GHPRQVWUDWHGWKDWWKHSLSLQJFDQZLWKVWDQGWKHORDGRIWKH539DIWHUIDLOXUHRIDOOYHVVHOVXSSRUWV,WVKRXOG

EHQRWHGWKDWWKHIODZVL]HVSRVWXODWHGLQWKH185(*&5ZRXOGKDYHEHHQLGHQWLILHGGXULQJRULJLQDO

IDEULFDWLRQ SUHVHUYLFHLQVSHFWLRQ RIWKHVXSSRUWZHOGVHLWKHUE\\G\\HSHQHWUDQWWHVWLQJPDJQHWLFSDUWLFOH

RUHYHQXOWUDVRQLFHTXLSPHQWDVUHTXLUHGE\\$,6& $PHULFDQ,QVWLWXWHRI6WHHO&RQVWUXFWLRQ DQG$:6

$PHULFDQ:HOGLQJ6RFLHW\\ 

7KHJRDORIWKHDQDO\\VLVKHUHLQIRU6W/XFLH8QLWVDQGIRUWKH\\HDU6/5LVWRNHHSFRQVLVWHQWZLWK

WKHRYHUDOOPHWKRGRORJ\\WKDWKDGEHHQSUHYLRXVO\\DFFHSWHGE\\WKHLQGXVWU\\DQG8615&LQ185(*

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

185(*DQG185(*&5ZKLOHDWWKHVDPHWLPHGHPRQVWUDWHWKDWWKH539VXSSRUWVZLWK

FRQVLGHUDWLRQRIQHXWURQHPEULWWOHPHQWDUHVWUXFWXUDOO\\VDIHIRUSODQWOLIHH[WHQVLRQWR\\HDUV

7KXVWKHHYDOXDWLRQLQWKLVUHSRUWIRU6W/XFLH8QLWVDQGGHWHUPLQHVWKHFULWLFDOIODZVL]HVEDVHGRQD

IUDFWXUHPHFKDQLFVHYDOXDWLRQRIWKH539VWUXFWXUDOVWHHOVXSSRUWVWRLQYHVWLJDWHWKHLPSDFWRIQHXWURQ

HPEULWWOHPHQW UDGLDWLRQHIIHFWV IRUDQRSHUDWLQJOLIHRI\\HDUV7KHJHQHUDOPHWKRGRORJ\\RIWKHIUDFWXUH

PHFKDQLFV HYDOXDWLRQ LV GHVFULEHG LQ 6HFWLRQ  7KH 6W /XFLH VXSSRUW FRQILJXUDWLRQ PDWHULDOV DQG

JHRPHWU\\DUHSURYLGHGLQ6HFWLRQRIWKLVUHSRUW6HFWLRQGHVFULEHVWKHSODQWVSHFLILFORDGLQJFRQGLWLRQV

DQGWKHVWUHVVHVXVHGLQWKHHYDOXDWLRQZKLOH6HFWLRQSURYLGHVLQIRUPDWLRQUHJDUGLQJIUDFWXUHWRXJKQHVV

SODQWVSHFLILFQHXWURQHPEULWWOHPHQWDQGSRVWXODWLRQRIIODZVL]HV6HFWLRQGHVFULEHVWKHDOORZDEOHIODZ

VL]HVZKLFKDUHFRPSDUHGWRWKHFULWLFDOIODZVL]HV6HFWLRQSURYLGHVWKHFDOFXODWHGFULWLFDOIODZVL]HVWKDW

ZHUHGHWHUPLQHGIRUWKHVXSSRUWVWRGHPRQVWUDWHVWUXFWXUDOVWDELOLW\\EDVHGRQWKHOLQHDUHODVWLFIUDFWXUH

PHFKDQLFVHYDOXDWLRQVDQG6HFWLRQSURYLGHVWKHILQDOFRQFOXVLRQVRIWKHIUDFWXUHPHFKDQLFVHYDOXDWLRQV

$OOFLWHGUHIHUHQFHVDUHSURYLGHGLQ6HFWLRQ

5HYLVLRQRIWKLVUHSRUWDGGUHVVHVFXVWRPHUFRPPHQWV5HYLVLRQFKDQJHVDUHPDUNHGE\\FKDQJHEDUV

$GGLWLRQDOO\\DOOGHVLJQLQSXWWUDQVPLWWDOVDUHRIILFLDO7KHRSHQLWHPLQ5HYLVLRQRIWKLVUHSRUWLVFORVHG





7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ



  • (1(5$/0(7+2'2/2*<

7KHJRDORIWKHIUDFWXUHPHFKDQLFVHYDOXDWLRQLVWRGHPRQVWUDWHWKDWEULWWOHIUDFWXUHLVQRWDFRQFHUQIRUWKH

539VWUXFWXUDOVXSSRUWVWHHOVDW6W/XFLH8QLWVDQG LHWKHFDOFXODWHGFULWLFDOIODZVL]HVDUHVXIILFLHQWO\\

ODUJHRUIODZWROHUDQW  EDVHG RQ  \\HDUV  ()3<  RI QHXWURQHPEULWWOHPHQW /LQHDU HODVWLF IUDFWXUH

PHFKDQLFV /()0 ZLOOEHXVHGDVDFRQVHUYDWLYHPHWKRGRORJ\\WRHYDOXDWHWKHVWUXFWXUDOLQWHJULW\\RIWKH

VXSSRUWV7KH /()0 PHWKRGRORJ\\ LV LOOXVWUDWHG LQ D IORZ FKDUW IRUPDW VHH )LJXUH   EDVHG RQ WKH

JXLGDQFHSURYLGHGLQ185(*>@IRUDIUDFWXUHPHFKDQLFVDSSURDFKWRDFFRXQWIRUUDGLDWLRQHIIHFWV

RQ539VXSSRUWVWHHOV7KH/()0PHWKRGRORJ\\LVEULHIO\\GHVFULEHGLQWKHIROORZLQJSDUDJUDSKV

7KH OLPLWLQJ FRPSRQHQW IRU WKH IUDFWXUH PHFKDQLFV DQDO\\VLV LV EDVHG RQ D FRPELQDWLRQ RI FRPSRQHQW

JHRPHWU\\RSHUDWLQJFRQGLWLRQVVWUHVVHVPDWHULDOSURSHUWLHVDQGQHXWURQHPEULWWOHPHQW7KH6W/XFLH

VXSSRUWFRQILJXUDWLRQPDWHULDOVDQGJHRPHWU\\DUHSURYLGHGLQ6HFWLRQRIWKLVUHSRUW7KHFULWLFDOIODZ

VL]HZLOOEHFDOFXODWHGE\\HTXDWLQJWKHPDWHULDOVSHFLILFIUDFWXUHWRXJKQHVVWRWKHDSSOLHGVWUHVVLQWHQVLW\\

IDFWRUVIRUYDULRXVSRVWXODWHGIODZVL]HVLQWKHVXSSRUWFRPSRQHQWVEDVHGRQQRUPDOXSVHWDQGIDXOWHG

FRQGLWLRQV QRWHWKDWWKHWHVWDQGHPHUJHQF\\FRQGLWLRQVDUHQRWLQWKH539VXSSRUWVDQDO\\VLVRIUHFRUGDQG

DUHQRWDQDO\\]HGLQWKLVUHSRUW $OODSSOLFDEOHORDGLQJFRQGLWLRQVVXFKDVGHDGZHLJKWVHLVPLFORVVRI

FRRODQWDFFLGHQWZHOGLQJUHVLGXDOVWUHVVHVDQGWKHUPDOVWUHVVHVDUHFRQVLGHUHGLQWKHDQDO\\VLVDVGHVFULEHG

LQ6HFWLRQRIWKLVUHSRUW>



@DFH

%DVHGRQWKHFRPSRQHQWJHRPHWU\\DQGORDGLQJW\\SHVVWUHVVLQWHQVLW\\IDFWRUVIRUYDULRXVIODZFRQGLWLRQV

ZLOOEHFRQVLGHUHGDVGHVFULEHGLQ6HFWLRQRIWKLVUHSRUW6WUHVVLQWHQVLW\\IDFWRUVEDVHGRQVHPLHOOLSWLFDO

SRVWXODWHGIODZVZLWKYDULRXVDVSHFWUDWLRV $5IODZOHQJWKRYHUIODZGHSWK ZLOOEHFRQVLGHUHGDWWKH539

VXSSRUWFRPSRQHQWVZLWKSODWHOLNHVWUXFWXUHVWKHVH$5ZLOOUDQJHIURPWRLQILQLW\\)RUEROWVWKHVWUHVV

LQWHQVLW\\IDFWRUVZLOOEHEDVHGRQDSRVWXODWHGFRQWLQXRXVFLUFXPIHUHQWLDOIODZDVWUDLJKWIURQWIODZ

DQG D VHPLFLUFXODU IURQW IODZ LQ D EDU PRGHO 7KH VWUHVV LQWHQVLW\\ IDFWRUV DUH WKHQ FRPSDUHG WR WKH

PDWHULDOVSHFLILFIUDFWXUHWRXJKQHVVWRGHWHUPLQHFULWLFDOIODZVL]H

7KHPDWHULDOVSHFLILFIUDFWXUHWRXJKQHVVZLOOEH>



























@DFH$GHWDLOHGGHVFULSWLRQRIWKHDOORZDEOHIODZVL]HVLVSURYLGHGLQ6HFWLRQRIWKLVUHSRUW

6HFWLRQDQG6HFWLRQSURYLGHWKHFDOFXODWHGFULWLFDOIODZVL]HVIRUWKH539VWUXFWXUDOVWHHOVXSSRUWVDQG

FRPSDUHWKHPWRWKHDOORZDEOHIODZVL]HVWRGHPRQVWUDWHVWUXFWXUDOVWDELOLW\\EDVHGRQWKHOLQHDUHODVWLF

IUDFWXUHPHFKDQLFVHYDOXDWLRQV



7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ



































































































)LJXUH)UDFWXUH0HFKDQLFV$SSURDFK)ORZFKDUW

  • HRPHWU\\

x3ODWH

x%DU %ROWV 

3RVWXODWHG)ODZ6L]H

x$VSHFW5DWLR

 6HPL(OOLSWLFDO,QILQLWH

&RQWLQXRXV&LUFXPIHUHQWLDO

6WUHVV,QWHQVLW\\)DFWRU

.,DQG.,, 

7HPSHUDWXUH

x3ODQWVSHFLILFRSHUDWLQJEXON

PDWHULDOWHPSHUDWXUH

0DWHULDO6SHFLILF

)UDFWXUH7RXJKQHVV

&ULWLFDOIODZVL]HLVGHWHUPLQHG

E\\HTXDWLQJVWUHVVLQWHQVLW\\

IDFWRUWRIUDFWXUHWRXJKQHVV

$FFHSWDQFH&ULWHULD

x>











@DFH

&RQWLQXHFXUUHQW$60(

6HFWLRQ;,\\HDULQVSHFWLRQ

,IRQHRIWKHDFFHSWDQFHFULWHULDLVPHW539

VWUXFWXUDOVWHHOVXSSRUWFRPSRQHQWLVIODZ

WROHUDQWIRU()3< FDOHQGDU\\HDUV 

/RDGV6WUHVVHV

x'HDGZHLJKW3UHVVXUH7KHUPDO

6HLVPLF3LSH%UHDN

x/RDGLQJ&RQGLWLRQ1RUPDO

8SVHW)DXOWHG

1HXWURQ(PEULWWOHPHQW

x3ODQWVSHFLILFIUDFWXUHWRXJKQHVV

EDVHGRQHQGRIOLFHQVH()3<

FDOHQGDU\\HDUV 

x,URQGSDWRGHWHUPLQH1'77

SHU)LJXUHRI185(*

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ



6833257&21),*85$7,210$7(5,$/$1'*(20(75<

7KLVVHFWLRQRIWKHUHSRUWGHVFULEHVWKHJHQHUDO6W/XFLH539VXSSRUWFRQILJXUDWLRQPDWHULDOGHVLJQDWLRQ

DQGJHRPHWU\\

7KH6W/XFLH539VXSSRUWVWUXFWXUHFRQVLVWVRIWKUHHORQJVWHHOFROXPQVH[WHQGLQJIHHWGRZQZDUGWR

WKHLQWHULRUFRQFUHWHVWUXFWXUHEHORZWKH5397KHWKUHHFROXPQVVXSSRUWWKUHHUHDFWRUYHVVHOQR))OHVRQH

FROXPQVXSSRUWVWKHYHVVHOXQGHUWKHKRWOHJQR))OHZKLOHWKHRWKHUWZRFROXPQVVXSSRUWWKHYHVVHOXQGHU

WKHWZRFROGOHJQR))OHVRQWKHORRSRSSRVLWHWKHKRWOHJQR))OHVXSSRUWDVVKRZQLQ)LJXUH7KHWRSRI

HDFKORQJFROXPQLVEROWHGWRDKRUL]RQWDOVXSSRUWLQD³7VKDSHG'VWUXFWXUHDVVKRZQLQ)LJXUH7KH

KRUL]RQWDOVXSSRUWERWWRPRIWKHFROXPQEDVHSODWHDQGDQFKRUEROWVDWWKHEDVHSODWHDQGKRUL]RQWDO

VXSSRUWDUHVKRZQLQPRUHGHWDLOLQ)LJXUH$FORVHXSYLHZRIWKHKRUL]RQWDOVXSSRUWLVSURYLGHGLQ

)LJXUH7KHKRUL]RQWDOVXSSRUWFRQVLVWVRISODWHVMRLQHGE\\ZHOGVDQGEROWV7KHWRSRIWKHKRUL]RQWDO

VXSSRUW LV EROWHG WR VKRHW\\SH VXSSRUW VWLIIHQHU SODWHV LH WKH UHVWUDLQLQJ EUDFNHW SODWH VKRZQ LQ

)LJXUH ZKLFKUHVWUDLQWKHVRFNHWVOLGHDVVHPEO\\RIWKH539QR))OHVXSSRUW7KHVRFNHWSODWHRIWKH

VRFNHWVOLGHDVVHPEO\\LVEROWHGWRWKHQR))OHVXSSRUWIRRWDQGVLWVRQWKHGRPHVKDSHGVOLGH7KHVOLGHLV

OXEULFDWHGRQERWKVLGHVDQGLVKHOGLQSODFHRQWKHVXSSRUWVWUXFWXUHE\\WZRUHVWUDLQLQJSODWHVDVLOOXVWUDWHG

LQ)LJXUH

7KH539VXSSRUWVDUHGHVLJQHGDQGIDEULFDWHGLQDFFRUGDQFHZLWK6SHFLILFDWLRQ)/2>D@DQG

DGGHQGXP>E@IRU6W/XFLH8QLWDQG6SHFLILFDWLRQ)/2>F@IRU6W/XFLH8QLW7KH

IROORZLQJILYH539VXSSRUWVWHHOFRPSRQHQWVZHUHFRQVLGHUHGIRUWKHFULWLFDOIODZVL]HFDOFXODWLRQVVLQFH

WKHVHORFDWLRQVFRXOGH[SHULHQFHODUJHWHQVLOHVWUHVVHVDQGRUKLJKHPEULWWOHPHQWHIIHFWVWKH'KRUL]RQWDO

SODWHDQG'YHUWLFDOSODWHDWWKHWRSRIWKHKRUL]RQWDOVXSSRUWWKH'KRUL]RQWDOSODWHDWWKHERWWRPRIWKH

KRUL]RQWDOVXSSRUWWKHEROWVZKLFKFRQQHFWWKHFROXPQDQGWKHERWWRPRIWKHKRUL]RQWDOVXSSRUWDQGWKH

EROWVDWWKHVRFNHWVOLGHUHVWUDLQLQJSODWHV1RWHWKDW³WRSRIWKHKRUL]RQWDOVXSSRUW'DQG³ERWWRPRIWKH

KRUL]RQWDOVXSSRUW'DUHGHILQHGLQ)LJXUH7KHRWKHUFRPSRQHQWVVXFKDVWKHEDVHSODWHDQFKRUEROWV

FROXPQDQGRWKHUZHOGHGSODWHVZLWKLQWKH539VXSSRUWV\\VWHPDUHVXEMHFWWRFRPSUHVVLYHRUORZHUWHQVLOH

VWUHVVDQGORZHULUUDGLDWLRQDQGWKXVZLOOEHERXQGHGE\\WKHUHVXOWVDQGFRQFOXVLRQVIRUWKHILYHDQDO\\]HG

FRPSRQHQWVPHQWLRQHGSUHYLRXVO\\7KHVSHFLILFDWLRQVDOVRVWDWHWKDWWKHZHOGLQJSURFHVVDQGHOHFWURGHV

VKDOOEH$:6ORZK\\GURJHQ&ODVV(IRUPDQXDOVKLHOGHGPHWDODUFZHOGLQJ 60$: RU$:6

);IRUVXEPHUJHGDUFZHOGLQJ 6$: 7KH6W/XFLH8QLWVSHFLILFDWLRQLQFOXGHGWKHRSWLRQIRU$:6

$&ODVV(7RU(7IRUIOX[FRUHGDUFZHOGLQJ )&$: 7KHJHRPHWU\\RILQWHUHVWIRUWKHILYH

FRPSRQHQWVDQGWKHW\\SHRIPDWHULDOSURYLGHGLQWKHIROORZLQJSDUDJUDSKVLVEDVHGRQWKH539VXSSRUW

GUDZLQJV>@

7RSRI+RUL]RQWDO6XSSRUW+/-'+RUL]RQWDO3ODWH )LJXUH 

7KH WRS RI WKH KRUL]RQWDO VXSSRUW FRQVLVWV RI SODWHV RI YDULRXV VL]HV ZHOGHG WRJHWKHU ZLWK EXWW ZHOGV

LQFOXGLQJIXOOSHQHWUDWLRQSDUWLDOSHQHWUDWLRQDQGILOOHWZHOGV>





@DFH

0DWHULDO$670$>@

7KLFNQHVV W  '

LGWK '



7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

7RSRI+RUL]RQWDO6XSSRUW+/-'9HUWLFDO3ODWH )LJXUH 

7KH WRS RI WKH KRUL]RQWDO VXSSRUW FRQVLVWV RI SODWHV RI YDULRXV VL]HV ZHOGHG WRJHWKHU ZLWK EXWW ZHOGV

LQFOXGLQJIXOOSHQHWUDWLRQSDUWLDOSHQHWUDWLRQDQGILOOHWZHOGV>





@DFH

0DWHULDO$670$&ODVV*UDGH%>@

7KLFNQHVV W  '

LGWK '

%RWWRPRI+RUL]RQWDO6XSSRUW+/-'+RUL]RQWDO3ODWH )LJXUH 

7KHERWWRPRIWKHKRUL]RQWDOVXSSRUWFRQVLVWVRIYDULRXVVL]HGSODWHVZHOGHGWRJHWKHUZLWKEXWW ZHOGV

LQFOXGLQJIXOOSHQHWUDWLRQSDUWLDOSHQHWUDWLRQDQGILOOHWZHOGV>





@DFH

0DWHULDO$670$>@

7KLFNQHVV W  '

LGWK '

%ROWV&RQQHFWLQJ&ROXPQDQG%RWWRPRI+RUL]RQWDO6XSSRUW )LJXUH 

7KHUHDUHHLJKWEROWVZKLFKFRQQHFWWKHWRSRIWKHFROXPQWRWKHERWWRPRIWKHKRUL]RQWDOVXSSRUW

0DWHULDO$670$>@

'LDPHWHU '

%ROWVDW6RFNHW6OLGH5HVWUDLQLQJ3ODWHV )LJXUH 

7KHUHDUHHLJKWEROWVWKDWIDVWHQWZRUHVWUDLQLQJSODWHVWRWKHKRUL]RQWDOVXUIDFHRIWKHVRFNHWVOLGHDVVHPEO\\

0DWHULDO1RW6SHFLILHG

'LDPHWHU '

,QDGGLWLRQWRWKHILYHDIRUHPHQWLRQHGFRPSRQHQWVWKHEDVHSODWHDQFKRUEROWVDQGFROXPQVDUHUHYLHZHG

LQ6HFWLRQ7KHFROXPQFRQVLVWVRI$670$SODWHVZLWKWKLFNQHVVUDQJLQJIURP'WR'7KHEDVH

SODWH WKLFNQHVV ' DQGVXUURXQGLQJZHOGHGSODWHQHDUWKHERWWRPRIWKHFROXPQ WKLFNQHVVUDQJHVIURP

'WR' DUH$670$7KHDQFKRUEROWVDWWKHEDVHSODWH GLDPHWHU ' DQGDQFKRUEROWVDWWKH

KRUL]RQWDOVXSSRUW GLDPHWHU ' DUH$670$





7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ









)LJXUH5HDFWRU&RRODQW/RRSV5HDFWRU3UHVVXUH9HVVHODQG/RFDWLRQRI5396XSSRUWV

([FHUSWRI5HIHUHQFHV>J@DQG>K@





+RW/HJ

5396XSSRUW

&ROG/HJ

5396XSSRUWV

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ





)LJXUH6W/XFLH5396XSSRUW$UUDQJHPHQW,OOXVWUDWLRQ





7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ









)LJXUH6W/XFLH5396XSSRUW6\\VWHP

([FHUSWRI5HIHUHQFHV>D@DQG>E@





7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ







)LJXUH&ORVHXS9LHZRI6W/XFLH5396XSSRUW6\\VWHP



DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ









)LJXUH6W/XFLH5396XSSRUW6KRH6RFNHWDQG6OLGHDW1R))OH6XSSRUW

([FHUSWRI5HIHUHQFHV>D@WKURXJK>G@





6RFNHW 6OLGH 1R))OH

6XSSRUW)RRW

([SDQVLRQ

3ODWH

1R))OH

%ROW/RFDWLRQVDW

6RFNHW6OLGH

5HVWUDLQLQJ3ODWHV

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ



/2$',1*&21',7,216$1'675(66$1$/<6,6

7KHFULWLFDOIODZVL]HVDUHGHWHUPLQHGE\\HTXDWLQJWKHDSSOLHGVWUHVVLQWHQVLW\\IDFWRUWRWKHPDWHULDOVSHFLILF

IUDFWXUHWRXJKQHVV7KHVWUHVVLQWHQVLW\\IDFWRULVGHWHUPLQHGIRUWKHYDULRXVORDGLQJFRPELQDWLRQVDSSOLFDEOH

WRWKH6W/XFLH8QLWVDQG539VXSSRUWV7KHGHVLJQEDVLVORDGFRPELQDWLRQVIRUWKH6W/XFLH539

VXSSRUWVDUHEDVHGRQWKHDQDO\\VLVRIUHFRUG>@>@DQGDUHDVIROORZV

>



















@DFH

5HSUHVHQWDWLYH VWUHVV FRQWRXU SORWV IRU WKH 6W /XFLH 8QLWV  DQG  539 6XSSRUWV DUH LOOXVWUDWHG LQ

)LJXUHWKURXJK)LJXUHIRUQRUPDOXSVHWDQGIDXOWHGFRQGLWLRQV7KHUH DUH ILYH FRPSRQHQWV

ZLWKLQ WKH 6W /XFLH 8QLWV  DQG  539 VXSSRUW V\\VWHPV WKDW DUH HYDOXDWHG LQ WKLV UHSRUW 7KH ILYH

FRPSRQHQWVDUHWKH'KRUL]RQWDOSODWHDQG'YHUWLFDOSODWHDWWKHWRSRIWKHKRUL]RQWDOVXSSRUWWKH'

KRUL]RQWDOSODWHDWWKHERWWRPRIWKHKRUL]RQWDOVXSSRUWWKHEROWVZKLFKFRQQHFWWKHFROXPQDQGERWWRPRI

WKH KRUL]RQWDO VXSSRUW DQG WKH EROWV DW WKH VRFNHWVOLGH UHVWUDLQLQJ SODWHV 7KHVH VXSSRUW FRPSRQHQWV

UHSUHVHQWWKHORFDWLRQVRIKLJKHVWVWUHVVHVZLWKLQWKH539VXSSRUWV\\VWHPDQGRUDUHORFDWHGQHDUWKH539

DFWLYHFRUHDQGVXEMHFWHGWRKLJKQHXWURQLUUDGLDWLRQ7KHRWKHUFRPSRQHQWVVXFKDVWKHEDVHSODWHDQFKRU

EROWV FROXPQ DQG RWKHU ZHOGHG SODWHV ZLWKLQ WKH 539 VXSSRUW V\\VWHP ZLOO EH ERXQGHG E\\ WKH ILYH

FRPSRQHQWVHYDOXDWHGKHUHLQ WKHRWKHUFRPSRQHQWVDUHGLVFXVVHGLQWKHYDULRXVVXEVHFWLRQVRI6HFWLRQ 

7KH SODQWVSHFLILF QRUPDO XSVHW DQG IDXOWHG ORDGLQJ FRPELQDWLRQ VWUHVVHV XVHG WR HYDOXDWH WKH ILYH

FRPSRQHQWVDUHSURYLGHGLQ7DEOHWKURXJK7DEOH>



















@DFH

7KHW\\SLFDOVWUHVVFRPSRQHQWVFRQVLGHUHG>









@DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

>



@DFH7KHVWUHVVLQWHQVLW\\IDFWRU

PHWKRGRORJ\\IRUHDFKRIWKHILYHVXSSRUWFRPSRQHQWVLVGHVFULEHGLQ6HFWLRQRIWKLVUHSRUW

HOGLQJUHVLGXDOVWUHVV :56 LVDOVRFRQVLGHUHGIRUWKHZHOGHGFRPSRQHQWVZLWKLQWKH539VXSSRUW

VWUXFWXUH%DVHGRQGUDZLQJVIRU6W/XFLH8QLWDQG8QLWWKHZHOGHGFRQQHFWLRQVDUHPDGHZLWKIXOO

SHQHWUDWLRQ SDUWLDO SHQHWUDWLRQ DQG ILOOHW ZHOGV >



















































@DFH

7KHIROORZLQJVHFWLRQVLQWKLVUHSRUWSURYLGHWKHVWUHVVDSSOLHGWRHDFKRIWKHILYHFRPSRQHQWVDQGDILJXUH

RIWKHSRVWXODWHGIODZVWKDWDUHDQDO\\]HGWRGHWHUPLQHWKHFULWLFDOIODZVL]HV

x

6HFWLRQ7RSRI+RUL]RQWDO6XSSRUW+/-'+RUL]RQWDO3ODWH

x

6HFWLRQ7RSRI+RUL]RQWDO6XSSRUW+/-'9HUWLFDO3ODWH

x

6HFWLRQ%RWWRPRI+RUL]RQWDO6XSSRUW+/-'+RUL]RQWDO3ODWH

x

6HFWLRQ%ROWV&RQQHFWLQJ&ROXPQDQG%RWWRPRI+RUL]RQWDO6XSSRUW

x

6HFWLRQ%ROWVDW6RFNHW6OLGH5HVWUDLQLQJ3ODWHV

>



@DFH$GLVFXVVLRQRIVWUHVVDVZHOODVIUDFWXUHWRXJKQHVVLVSURYLGHGLQ

WKHYDULRXVVXEVHFWLRQVRI6HFWLRQWRGHWHUPLQHWKDWWKHVHFRPSRQHQWVZLOOEHERXQGHGE\\RUUHSUHVHQWHG

E\\WKHILYHFRPSRQHQWVPHQWLRQHGSUHYLRXVO\\









7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

)LJXUH5HSUHVHQWDWLYH6WUHVV,QWHQVLW\\IRU1RUPDO2SHUDWLQJ&RQGLWLRQV

)LJXUH5HSUHVHQWDWLYH6WUHVV,QWHQVLW\\'HWDLOIRU1RUPDO2SHUDWLQJ&RQGLWLRQV

DFH

DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

)LJXUH5HSUHVHQWDWLYH8SSHU6XSSRUW%RWWRP3ODWH6WUHVV,QWHQVLW\\'HWDLOIRU1RUPDO

2SHUDWLQJ&RQGLWLRQV





)LJXUH5HSUHVHQWDWLYH6WUHVV,QWHQVLW\\IRU8SVHW&RQGLWLRQV

DFH

DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

)LJXUH5HSUHVHQWDWLYH6WUHVV,QWHQVLW\\'HWDLOIRU8SVHW&RQGLWLRQV

)LJXUH5HSUHVHQWDWLYH8SSHU6XSSRUW%RWWRP3ODWH6WUHVV,QWHQVLW\\'HWDLOIRU8SVHW

&RQGLWLRQV

DFH

DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

)LJXUH5HSUHVHQWDWLYH6WUHVV,QWHQVLW\\IRU)DXOWHG&RQGLWLRQV



)LJXUH5HSUHVHQWDWLYH6WUHVV,QWHQVLW\\'HWDLOIRU)DXOWHG&RQGLWLRQV

DFH

DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

)LJXUH5HSUHVHQWDWLYH8SSHU6XSSRUW%RWWRP3ODWH6WUHVV,QWHQVLW\\'HWDLOIRU)DXOWHG

&RQGLWLRQV



)LJXUH5HSUHVHQWDWLYH&ROXPQ0D[LPXP3ULQFLSDO6WUHVVIRU8SVHW&RQGLWLRQV

DFH

DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

)LJXUH5HSUHVHQWDWLYH&ROXPQ0LQLPXP3ULQFLSDO6WUHVVIRU8SVHW&RQGLWLRQV



)LJXUH5HSUHVHQWDWLYH&ROXPQ0D[LPXP3ULQFLSDO6WUHVVIRU)DXOWHG&RQGLWLRQV

DFH

DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

)LJXUH5HSUHVHQWDWLYH&ROXPQ0LQLPXP3ULQFLSDO6WUHVVIRU)DXOWHG&RQGLWLRQV









DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ



7232)+25,=217$/6833257+/-'+25,=217$/3/$7(675(66

7KHDSSOLHGVWUHVVHVRQWKH'KRUL]RQWDOSODWHORFDWHGDWWKHWRSRIWKHKRUL]RQWDOVXSSRUWDUHSURYLGHGLQ

7DEOH  IRU WKH QRUPDO XSVHW DQG IDXOWHG ORDGLQJ FRPELQDWLRQV 7KH DSSOLHG VWUHVVHV DUH EDVHG RQ

>



@DFH:HOGLQJUHVLGXDOVWUHVVLVDGGHGWRWKHRSHUDWLQJVWUHVVIRU

WKHSRVWXODWHGIODZVORFDWHGQHDUWKHZHOGHGSRUWLRQRIWKHKRUL]RQWDOSODWH7KHSRVWXODWHGVHPLHOOLSWLFDO

IODZVZLWKDVSHFWUDWLRV $5IODZOHQJWKRYHUIODZGHSWK RIDQGDVZHOODVDSRVWXODWHGLQILQLWHO\\

ORQJHGJHIODZDUHDQDO\\]HGDVDSDUDPHWULFVWXG\\$UHQGLWLRQRIWKHKRUL]RQWDOSODWHDQGWKHSRVWXODWHG

IODZVLVVKRZQLQ)LJXUH



7DEOH$SSOLHG6WUHVVHVIRU7RSRI+RUL]RQWDO6XSSRUW+/-'+RUL]RQWDO3ODWH







DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU

5HYLVLRQ



)LJXUH3RVWXODWHG)ODZVLQWKH7RSRI+RUL]RQWDO6XSSRUW+/-'+RUL]RQWDO3ODWH



DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ



7232)+25,=217$/6833257+/-'9(57,&$/3/$7(675(66

7KHDSSOLHGVWUHVVHVRQWKH'YHUWLFDOSODWHORFDWHGDWWKHWRSRIWKHKRUL]RQWDOVXSSRUWDUHSURYLGHGLQ

7DEOH  IRU WKH QRUPDO XSVHW DQG IDXOWHG ORDGLQJ FRPELQDWLRQV 7KH DSSOLHG VWUHVVHV DUH EDVHG RQ

>



@DFH:HOGLQJUHVLGXDOVWUHVVLVDGGHGWRWKHRSHUDWLQJVWUHVVIRU

WKHSRVWXODWHGIODZVORFDWHGQHDUWKHZHOGHGSRUWLRQRIWKHYHUWLFDOSODWH7KHSRVWXODWHGVHPLHOOLSWLFDO

IODZVZLWKDVSHFWUDWLRV $5IODZOHQJWKRYHUIODZGHSWK RIDQGDVZHOODVDSRVWXODWHGLQILQLWHO\\

ORQJHGJHIODZDUHDQDO\\]HGDVDSDUDPHWULFVWXG\\$UHQGLWLRQRIWKHYHUWLFDOSODWHDQGWKHSRVWXODWHGIODZV

LVVKRZQLQ)LJXUH1RWHWKDWWKHGLIIHUHQFHRIVWUHVVWUHQGEHWZHHQ6W/XFLH8QLWDQG8QLWORDG

FRQGLWLRQVLVGXHWRWKH6W/XFLHXQLWVKDYLQJGLIIHUHQWORDGVRXUFHFDOFXODWLRQVGXHWRYDULRXVXSGDWHV

PDGHWRWKHXQLWVRYHUWKH\\HDUV



7DEOH$SSOLHG6WUHVVHVIRU7RSRI+RUL]RQWDO6XSSRUW+/-'9HUWLFDO3ODWH









DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU

5HYLVLRQ





)LJXUH3RVWXODWHG)ODZVLQWKH7RSRI+RUL]RQWDO6XSSRUW+/-'9HUWLFDO3ODWH





DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ



%277202)+25,=217$/6833257+/-'+25,=217$/3/$7(675(66

7KHDSSOLHGVWUHVVHVRQWKH'KRUL]RQWDOSODWHORFDWHGDWWKHERWWRPRIWKHKRUL]RQWDOVXSSRUWDUHSURYLGHG

LQ7DEOHIRUWKHQRUPDOXSVHWDQGIDXOWHGORDGLQJFRPELQDWLRQV7KHDSSOLHGVWUHVVHVDUHEDVHGRQ

>



@DFH:HOGLQJUHVLGXDOVWUHVVLVDGGHGWRWKHRSHUDWLQJVWUHVVIRU

WKHSRVWXODWHGIODZVORFDWHGQHDUWKHZHOGHGSRUWLRQRIWKHKRUL]RQWDOSODWH7KHSRVWXODWHGVHPLHOOLSWLFDO

IODZVZLWKDVSHFWUDWLRV $5IODZOHQJWKRYHUIODZGHSWK RIDQGDVZHOODVDSRVWXODWHGLQILQLWHO\\

ORQJHGJHIODZDUHDQDO\\]HGDVDSDUDPHWULFVWXG\\$VNHWFKRIWKHKRUL]RQWDOSODWHDQGWKHSRVWXODWHGIODZV

LVVKRZQLQ)LJXUH

,WLVQRWHGWKDWWKHVWUHVVHVIRUWKHQRUPDOFRQGLWLRQH[FHHGWKRVHIRUWKHXSVHWDQGIDXOWHGFRQGLWLRQV7KH

UHDVRQIRUWKLVKDVWRGRZLWKWKHIDFWWKDWWKURXJKRXWWKHGHYHORSPHQWRIWKHFDOFXODWLRQVWKHXSVHWDQG

IDXOWHGFRQGLWLRQPRGHOVZHUHH[WHQVLYHO\\UHILQHGZLWKUHJDUGWRVWUHVVORFDWLRQVGXHWRWKHKLJKVWUHVVHV

LPSRVHGE\\WKHKLJKHUORDGV2QHRIWKHUHILQHPHQWVPDGHZDVDWWKHORFDWLRQRIWKHERWWRPSODWH7KH

ORFDWLRQ RI KLJK VWUHVVLVZKHUHWKH EROWHOHPHQWLVDWWDFKHG WRWKH SODWH HOHPHQW YLD ULJLG OLQNV7KLV

DWWDFKPHQWSRLQWEHWZHHQWKHEROWDQGWKHSODWHUHSUHVHQWVDGLVFRQWLQXLW\\LQWKHPHVKZKHUHH[WUHPHO\\KLJK

VWUHVVHVGHYHORSWKDWDUHQRWUHODWHGWRWKHLQSXWORDGLQJ,QWKHXSVHWDQGIDXOWHGFRQGLWLRQUXQVWKHVWUHVVHV

DWWKLVGLVFRQWLQXLW\\ZHUHVRKLJKWKDWWKHOLQHDUL]DWLRQSDWKWKDWZDVDSSOLHGWRSURGXFHVWUHVVHVZDVPRYHG

WREHYHU\\FORVHWRWKHGLVFRQWLQXRXVORFDWLRQEXWMXVWRXWVLGHRILWVRWKDWDPRUHDFFXUDWHUHSUHVHQWDWLRQ

RIWKHVWUHVVILHOGZDVGHYHORSHGE\\WKHOLQHDUL]DWLRQ

)RUWKHQRUPDORSHUDWLQJFRQGLWLRQWKHVWUHVVHVZHUHJHQHUDOO\\ORZHQRXJKWKDWVXFKUHILQHPHQWZDVQRW

QHFHVVDU\\)RUWKHERWWRPSODWHFDVHLQSDUWLFXODUWKHOLQHDUL]DWLRQSDWKZDVNHSWDWDORFDWLRQWKDWFXWV

GLUHFWO\\WKURXJKWKHGLVFRQWLQXLW\\KHQFHWKHKLJKVWUHVVUHSUHVHQWHGLQWKHUHVXOWV



7DEOH$SSOLHG6WUHVVHVIRU%RWWRPRI+RUL]RQWDO6XSSRUW+/-'+RUL]RQWDO3ODWH

























DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ



)LJXUH3RVWXODWHG)ODZVLQWKH%RWWRPRI+RUL]RQWDO6XSSRUW+/-'+RUL]RQWDO3ODWH

DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ



%2/76&211(&7,1*&2/801$1'%277202)+25,=217$/6833257

)25&(6$1'020(176

7KHDSSOLHGIRUFHVDQGPRPHQWVRQWKHEROWVZKLFKFRQQHFWWKHFROXPQWRWKHERWWRPRIWKHKRUL]RQWDO

VXSSRUWDUHSURYLGHGLQ7DEOHIRUQRUPDOXSVHWDQGIDXOWHGORDGLQJFRPELQDWLRQV>









@DFH$VNHWFKRIWKHEROW

DQGWKHSRVWXODWHGIODZVLVVKRZQLQ)LJXUH3UHORDGZDVH[DPLQHGDQGWKHYDOXHVXVHGLQWKHDQDO\\VLV

ZHUHIDUJUHDWHUWKDQDUHDVRQDEOHVQXJILWYDOXHHUJRWKHDQDO\\VLVLVFRQVHUYDWLYH



7DEOH)RUFHVDQG0RPHQWVIRU%ROWV&RQQHFWLQJ&ROXPQDQG%RWWRPRI+RUL]RQWDO6XSSRUW







)LJXUH3RVWXODWHG)ODZVDQG/RDGVLQ%ROWV&RQQHFWLQJ&ROXPQDQG%RWWRPRI

+RUL]RQWDO6XSSRUW



DFH

DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ



%2/76$762&.(76/,'(5(675$,1,1*3/$7(6675(66

7KHDSSOLHGVKHDUVWUHVVRQWKHEROWVORFDWHGDWVRFNHWVOLGHUHVWUDLQLQJSODWHVLVSURYLGHGLQ7DEOHDQG

LVFRQVHUYDWLYHO\\DSSOLHGWRDOOORDGLQJFRPELQDWLRQV>





@DFH$VNHWFKRIWKHEROWDQGWKHSRVWXODWHGIODZVLVVKRZQLQ)LJXUH



7DEOH$SSOLHG6KHDU6WUHVVIRU%ROWVDW6RFNHW6OLGH5HVWUDLQLQJ3ODWHV

6W/XFLH8QLWVDQG













)LJXUH3RVWXODWHG6LQJOH(GJH)ODZDQG6KHDU6WUHVVLQ%ROWVDW6RFNHW6OLGH5HVWUDLQLQJ

3ODWHV





DFH

DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ



)5$&785(0(&+$1,&60(7+2'2/2*<

$V GLVFXVVHG LQ 6HFWLRQ  WKH OLQHDU HODVWLF IUDFWXUH PHFKDQLFV PHWKRGRORJ\\ LV XVHG WR HYDOXDWH WKH

VWUXFWXUDOLQWHJULW\\RIWKH6W/XFLH8QLWVDQG539VWUXFWXUDOVWHHOVXSSRUWV7KHJRDORIWKHHYDOXDWLRQ

LQ WKLV UHSRUW LV WR GHPRQVWUDWH WKDW WKH FDOFXODWHG FULWLFDO IODZ VL]HV EDVHG RQ  \\HDUV RI QHXWURQ

HPEULWWOHPHQWDUHVXIILFLHQWO\\ODUJH LHIODZWROHUDQW DVFRPSDUHGWR>









@DFH$GHWDLOHGGHVFULSWLRQRIWKHDOORZDEOHIODZVL]HV

LVSURYLGHGLQ6HFWLRQ

7KHFULWLFDOIODZVL]HVDUHFDOFXODWHGEDVHGRQHTXDWLQJWKHVWUHVVLQWHQVLW\\IDFWRUWRWKHPDWHULDOVSHFLILF

IUDFWXUHWRXJKQHVVZLWKFRQVLGHUDWLRQRIQHXWURQHPEULWWOHPHQW7KHGLVFXVVLRQIRUVWUHVVLQWHQVLW\\IDFWRU

PHWKRGRORJ\\LVSURYLGHGLQ6HFWLRQZKLOHWKHGHWHUPLQDWLRQRIPDWHULDOVSHFLILFIUDFWXUHWRXJKQHVV

YDOXHVLVGLVFXVVHGLQ6HFWLRQ





)5$&785(728*+1(66'(7(50,1$7,21

7KHFULWLFDOIODZVL]HLVGHWHUPLQHGE\\HTXDWLQJWKHDSSOLHGVWUHVVLQWHQVLW\\IDFWRUWRIUDFWXUHWRXJKQHVV)RU

SUHVVXUHYHVVHOVWHHOVLWZRXOGEHDSSURSULDWHWRXVHWKH.,FRU.,5IUDFWXUHWRXJKQHVVFXUYHVLQ$60(

6HFWLRQ;,>@DQG$60(6HFWLRQ,,,$SSHQGL[*>@UHVSHFWLYHO\\+RZHYHUVRPH6W/XFLH539

VXSSRUWPDWHULDOV KLJKVWUHQJWKEROWVRUFDUERQVWHHOV ZHUHQRWSDUWRIWKHVSHFLILFDWLRQVWKDWZHUHWHVWHG

WRJHQHUDWHWKH$60(6HFWLRQ;,DQG6HFWLRQ,,,FXUYHV LH6$*UDGH%&ODVVDQG6$&ODVV

DQG >











































@DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

>









@DFH



 1HXWURQ(PEULWWOHPHQWDQG1LO'XFWLOLW\\7UDQVLWLRQ7HPSHUDWXUHRI5396XSSRUWV

$ :HVWLQJKRXVH 2ZQHUV *URXS :2*  QRZ NQRZQ DV 3UHVVXUL]HG :DWHU 5HDFWRU 2ZQHUV *URXS

>3:52*@  SURJUDP ZDV SHUIRUPHG LQ :&$3 5HYLVLRQ $ >@ GXULQJ WKH ODWH V DQG

FRPSOHWHG LQ WKH \\HDU  WKDW UHDVVHVVHG WKH DJLQJ HIIHFWV IURP QHXWURQ HPEULWWOHPHQW RQ WKH 539

VXSSRUWVIRUWKHILUVWOLFHQVHUHQHZDOSURJUDP \\HDUV 7KHDVVHVVPHQWLQ:&$3UHIHUHQFHGWKH

H[WHQVLYHLQGXVWU\\UHVHDUFKDQGSODQWVSHFLILFHYDOXDWLRQVSHUIRUPHGLQ185(*185(*&5

DQGWKHUHVROXWLRQRI*6,LQ185(*WRFRQFOXGHWKDWDJLQJPDQDJHPHQWLVQRWDFRQFHUQIRUWKH

539VXSSRUWVIRU\\HDUVRISODQWOLIHRSHUDWLRQ

,QWKHILQDO8615&VDIHW\\HYDOXDWLRQIRU:&$3WKH8615&VWDIIFRQFOXGHG³WKHVWDIIFRQVLGHUV

WKDWQHXWURQHPEULWWOHPHQWLVQRWDFRQFHUQIRUWKHVXSSRUWVDQGGRHVQRWZDUUDQWDQDJLQJPDQDJHPHQW

SURJUDP'>@7KHFRQFOXVLRQZDVEDVHGRQDQHYDOXDWLRQWKDWVKRZVWKDWLIDOOWKHVXSSRUWVIDLOHGWKH

VKRUWVSDQRISLSLQJEHWZHHQWKHYHVVHODQGWKHVKLHOGZDOOZRXOGVXSSRUWWKHORDGRIWKHYHVVHO7KLV

HOLPLQDWHGWKHVWDII¶VFRQFHUQZLWK539VXSSRUWHPEULWWOHPHQW

7KHHPEULWWOHPHQWSUHGLFWLRQPRGHOVGHYHORSHGLQ185(*&5DQGXVHGLQWKHIUDFWXUHPHFKDQLFV

DQDO\\VLVRI7URMDQDQG7XUNH\\3RLQWZHUHGLVFXVVHGLQ6HFWLRQRI185(*7KHPDMRULVVXHRIWKH

HPEULWWOHPHQWFXUYHLQ185(*&5ZDVWKDWRQO\\IDVWQHXWURQIOXHQFH (!0H9 ZDVFRQVLGHUHG

WRFDXVHHPEULWWOHPHQWGDPDJH6HFWLRQVDQGRI185(*FRQFOXGHGWKDWORZHQHUJ\\QHXWURQ

LUUDGLDWLRQ EHORZ0H9 FRXOGSRWHQWLDOO\\PDNHDVLJQLILFDQWFRQWULEXWLRQWRWKHREVHUYHGHPEULWWOHPHQW

7KHUHIRUH WKH JXLGDQFH SURYLGHG LQ WKH 185(* *6, UHVROXWLRQ LV WR XWLOL]H )LJXUH  RI

185(* UHSURGXFHG KHUHLQ DV )LJXUH   WR FDOFXODWH WKH FKDQJH LQ QLOGXFWLOLW\\ WUDQVLWLRQ

WHPSHUDWXUH 1'77 EDVHGRQGSDIRUWKHHQHUJ\\VSHFWUXP(!0H9

>































@DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

>

















@DFH

7KHLPSDFWRIQHXWURQHPEULWWOHPHQW UDGLDWLRQHIIHFWV RQWKH6W/XFLH8QLWVDQG539VXSSRUWVZDV

GHWHUPLQHGIRUFDOHQGDU\\HDUV ()3< DQGFDOHQGDU\\HDUV DSSUR[LPDWHO\\()3<IRU6W/XFLH

8QLWDQG()3<IRU6W/XFLH8QLW RIRSHUDWLRQ7KHQHXWURQHPEULWWOHPHQWLVGHILQHGDVDIXQFWLRQ

RILURQGLVSODFHPHQWSHUDWRP GSD FRQVLVWHQWZLWK)LJXUHRI185(* UHSURGXFHGKHUHLQDV

)LJXUH WRGHWHUPLQHFKDQJHLQ1'777KHQHXWURQWUDQVSRUWPHWKRGRORJ\\XVHGWRJHQHUDWHWKHLURQ

GSDGDWDIROORZHGWKHJXLGDQFHRI8615&5HJXODWRU\\*XLGH>@DQGZDVFRQVLVWHQWZLWKWKH86

15&DSSURYHGPHWKRGRORJ\\GHVFULEHGLQ:&$313$>@$OWKRXJKWKLVPHWKRGRORJ\\KDVQRW

EHHQDSSURYHGE\\WKH8615&IRUWKH539VXSSRUWVWKHPHWKRGRORJ\\KDVEHHQJHQHULFDOO\\DSSURYHGIRU

FDOFXODWLRQV RI H[SRVXUH RI WKH 539 EHOWOLQH JHQHUDOO\\ 539 PDWHULDOV RSSRVLWH WKH DFWLYH IXHO 7KH

IROORZLQJSDUDJUDSKVGHVFULEHWKHQHXWURQWUDQVSRUWPHWKRGRORJ\\IRU6W/XFLH8QLWVDQG

>















































 

 @DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

>



















@DFH

7KHLPSDFWRIQHXWURQHPEULWWOHPHQW UDGLDWLRQHIIHFWV RQWKH539VXSSRUWVGHILQHGDVLURQGSDYDOXHV

IURPDOOHQHUJ\\OHYHOVDUHSURYLGHGLQ7DEOHDQG7DEOHIRU6W/XFLH8QLWVDQGUHVSHFWLYHO\\

7KH6W/XFLH539VXSSRUWVORFDWLRQVRILQWHUHVWVIRUWKHHYDOXDWLRQKHUHLQDUHRQIRXUHOHYDWLRQV

  7RSRIWKHVXSSRUWFROXPQKDVWKHPD[LPXPLURQGSDRIWKHHQWLUHFROXPQ

  7RSRIWKH'SODWHXQGHUQR))OHVXSSRUWIRRW WRSRIWKHVXSSRUWVWUXFWXUH 

  %RWWRPRIWKHKRUL]RQWDOVXSSRUWZKLFKLVWKHVDPHHOHYDWLRQDV  

  6XSSRUWFROXPQERWWRP

7KHLURQGSDYDOXHVLQFOXGHFRQWULEXWLRQVRIQHXWURQVDERYH0H9DVZHOODVQHXWURQVEHORZ0H9

DQGLQFOXGHDELDVRQWKHSHULSKHUDODQGUHHQWUDQWFRUQHUDVVHPEO\\UHODWLYHSRZHUV7KHUHIRUHWKH

IXOOVSHFWUXPGSDYDOXHVDUHFRQVHUYDWLYHO\\XVHGWRGHWHUPLQHWKH1'77LQDFFRUGDQFHZLWK)LJXUH

RI185(*1RWHWKDWDVDVWXG\\RIIUDFWXUHWRXJKQHVVLURQGSDLVLQFUHDVHGE\\WRDFFRXQWIRU

DQDO\\WLFDOXQFHUWDLQWLHVDVVRFLDWHGZLWKWKHPHWKRGRORJ\\XVHGWRFDOFXODWHHPEULWWOHPHQWRIWKH6W/XFLH

539VXSSRUWVWUXFWXUH7KH1'77FDOFXODWHGEDVHGRQWKHXSSHUERXQGFXUYHLQ)LJXUH )LJXUH

RI185(* IRUWKHDIRUHPHQWLRQHGHOHYDWLRQVDUHSURYLGHGLQ7DEOHDQG7DEOHIRUFDOHQGDU

\\HDUV ()3< DQGFDOHQGDU\\HDUV DSSUR[LPDWHO\\()3<IRU6W/XFLH8QLWDQG()3<IRU

6W/XFLH8QLW 



7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ



)LJXUH&KDQJHLQ1LO'XFWLOLW\\7UDQVLWLRQ7HPSHUDWXUH1'77DVD)XQFWLRQRIGSDSHU

)LJXUHRI185(*>@







8SSHU%RXQG

&XUYH

0HGLDQ

&XUYH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ





)LJXUH7RS9LHZRIWKH5HDFWRU*HRPHWU\\DWWKH&RUH0LGSODQH+/-ZLWK7KHUPDO6KLHOG

6W/XFLH8QLW&\\FOHV+/-













DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ







)LJXUH2EOLTXH9LHZRIWKH5HDFWRU*HRPHWU\\+/-ZLWK7KHUPDO6KLHOG

6W/XFLH8QLW&\\FOHV+/-

DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ







)LJXUH7RS9LHZRIWKH5HDFWRU*HRPHWU\\DWWKH&RUH0LGSODQH+/-:LWKRXW7KHUPDO6KLHOG

6W/XFLH8QLW&\\FOH











DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ







)LJXUH2EOLTXH9LHZRIWKH5HDFWRU*HRPHWU\\+/-:LWKRXW7KHUPDO6KLHOG

6W/XFLH8QLW&\\FOHV







DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ







)LJXUH7RS9LHZRI5HDFWRU*HRPHWU\\DWWKH&RUH0LGSODQH+/-6W/XFLH8QLW















DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ







)LJXUH2EOLTXH9LHZRI5HDFWRU*HRPHWU\\+/-6W/XFLH8QLW





DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ



7DEOH6W/XFLH8QLW,URQGSD $OO1HXWURQ(QHUJLHV DWWKH5396XSSRUW6WUXFWXUH+/-

%LDVRQWKH3HULSKHUDODQG5H(QWUDQW&RUQHU$VVHPEO\\5HODWLYH3RZHUV

(OHYDWLRQ D 

FP 

,URQ$WRP'LVSODFHPHQWV+/-$OO1HXWURQ(QHUJLHV GSD  G 

()3< E 

()3<

()3<

()3<

()3<

()3<

()3<

 F 

(

(

(

(

(

(

(



(

(

(

(

(

(

(



(

(

(

(

(

(

(



(

(

(

(

(

(

(



(

(

(

(

(

(

(



(

(

(

(

(

(

(



(

(

(

(

(

(

(



(

(

(

(

(

(

(



(

(

(

(

(

(

(



(

(

(

(

(

(

(



(

(

(

(

(

(

(



(

(

(

(

(

(

(



(

(

(

(

(

(

(



(

(

(

(

(

(

(



(

(

(

(

(

(

(



(

(

(

(

(

(

(



(

(

(

(

(

(

(



(

(

(

(

(

(

(



(

(

(

(

(

(

(



(

(

(

(

(

(

(



(

(

(

(

(

(

(



(

(

(

(

(

(

(



(

(

(

(

(

(

(



(

(

(

(

(

(

(



(

(

(

(

(

(

(



(

(

(

(

(

(

(



(

(

(

(

(

(

(



(

(

(

(

(

(

(



(

(

(

(

(

(

(



(

(

(

(

(

(

(



(

(

(

(

(

(

(



(

(

(

(

(

(

(



(

(

(

(

(

(

(



(

(

(

(

(

(

(



(

(

(

(

(

(

(



(

(

(

(

(

(

(

1RWHV

D  (OHYDWLRQVDUHJLYHQZLWKUHVSHFWWRWKHPLGSODQHRIWKHDFWLYHIXHO

E  9DOXHOLVWHGLVWKHSURMHFWHG()3<DWWKHHQGRI&\\FOH

F  7KLVHOHYDWLRQFRUUHVSRQGVWRWKHWRSRIWKHLQFKWKLFNKRUL]RQWDOSODWHDWWKHWRSFHQWHURIWKH539VXSSRUWVWUXFWXUH

G  /LQHDULQWHUSRODWLRQEHWZHHQWKH()3<YDOXHVOLVWHGLQWKLVWDEOHPD\\EHSHUIRUPHGDVQHFHVVDU\\

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

7DEOH6W/XFLH8QLW,URQGSD $OO1HXWURQ(QHUJLHV DWWKH5396XSSRUW6WUXFWXUH+/-

%LDVRQWKH3HULSKHUDODQG5H(QWUDQW&RUQHU$VVHPEO\\5HODWLYH3RZHUV

(OHYDWLRQ D 

FP 

,URQ$WRP'LVSODFHPHQWV+/-$OO1HXWURQ(QHUJLHV GSD  G 

()3< E 

()3<

()3<

()3<

()3<

()3<

()3<

()3<

 F 

(

(

(

(

(

(

(

(



(

(

(

(

(

(

(

(



(

(

(

(

(

(

(

(



(

(

(

(

(

(

(

(



(

(

(

(

(

(

(

(



(

(

(

(

(

(

(

(



(

(

(

(

(

(

(

(



(

(

(

(

(

(

(

(



(

(

(

(

(

(

(

(



(

(

(

(

(

(

(

(



(

(

(

(

(

(

(

(



(

(

(

(

(

(

(

(



(

(

(

(

(

(

(

(



(

(

(

(

(

(

(

(



(

(

(

(

(

(

(

(



(

(

(

(

(

(

(

(



(

(

(

(

(

(

(

(



(

(

(

(

(

(

(

(



(

(

(

(

(

(

(

(



(

(

(

(

(

(

(

(



(

(

(

(

(

(

(

(



(

(

(

(

(

(

(

(



(

(

(

(

(

(

(

(



(

(

(

(

(

(

(

(



(

(

(

(

(

(

(

(



(

(

(

(

(

(

(

(



(

(

(

(

(

(

(

(



(

(

(

(

(

(

(

(



(

(

(

(

(

(

(

(



(

(

(

(

(

(

(

(



(

(

(

(

(

(

(

(



(

(

(

(

(

(

(

(



(

(

(

(

(

(

(

(



(

(

(

(

(

(

(

(



(

(

(

(

(

(

(

(



(

(

(

(

(

(

(

(

1RWHV

D  (OHYDWLRQVDUHJLYHQZLWKUHVSHFWWRWKHPLGSODQHRIWKHDFWLYHIXHO

E  9DOXHOLVWHGLVWKHSURMHFWHG()3<DWWKHHQGRI&\\FOH

F  7KLVHOHYDWLRQFRUUHVSRQGVWRWKHWRSRIWKHLQFKWKLFNKRUL]RQWDOSODWHDWWKHWRSFHQWHURIWKH539VXSSRUWVWUXFWXUH

G  /LQHDULQWHUSRODWLRQEHWZHHQWKH()3<YDOXHVOLVWHGLQWKLVWDEOHPD\\EHSHUIRUPHGDVQHFHVVDU\\

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

7DEOH,URQ'LVSODFHPHQWSHU$WRPDQG&RUUHVSRQGLQJ1'77IRU6W/XFLH8QLW

,WHP

/RFDWLRQ

()3<

,URQGSD

8SSHU%RXQG&XUYH

1'77 E 



6XSSRUW&ROXPQ+/-0D[LPXP

7DEOH(OHYDWLRQFP 



(



)



&

GSD

(



)



&



(



)



&

GSD

(



)



&



7RSRI'3ODWHXQGHU1R))OH)RRW

7DEOH(OHYDWLRQFP 



(



)



&

GSD

(



)



&



(



)



&

GSD

(



)



&



%RWWRPRI+RUL]RQWDO6XSSRUW

7RSRI&ROXPQ

7DEOH(OHYDWLRQFP 



(



)



&

GSD

(



)



&



(



)



&

GSD

(



)



&



6XSSRUW&ROXPQ%RWWRP

7DEOH(OHYDWLRQFP 

$OO

(

D 

 D 

)

 D 

&

1RWHV

D  7KLVLVWKHLURQGSDDWWKHORZHVWHOHYDWLRQUHSRUWHGLQ7DEOH FPEHORZWRSRIVXSSRUW IHHW 7KHERWWRP

RIWKHVXSSRUWFROXPQLVRYHUIHHWEHORZWKLVUHSRUWHGLURQGSDHOHYDWLRQ IWIURPWKHWRSWRERWWRPRIVXSSRUW>D@ 

7KHWRSRIWKHVXSSRUWFROXPQERWWRPIRRWLVIHHWEHORZWKLVUHSRUWHGLURQGSDHOHYDWLRQ7KHUHIRUHLURQGSDDQGDQ\\

DVVRFLDWHG HPEULWWOHPHQW DW WKHVH ORFDWLRQV LV QHJOLJLEOH (PEULWWOHPHQW QHHG QRW EH FRQVLGHUHG LQ WKH VXSSRUW ERWWRP

FRPSRQHQWV

E  7KHFRQYHUVLRQRIGHOWDWHPSHUDWXUH 7 LQGHJUHHV&HOVLXVWR)DKUHQKHLWLV7) 7&





7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

7DEOH,URQ'LVSODFHPHQWSHU$WRPDQG&RUUHVSRQGLQJ1'77IRU6W/XFLH8QLW

,WHP

/RFDWLRQ

()3<

,URQGSD

8SSHU%RXQG&XUYH

1'77 E 



6XSSRUW&ROXPQ+/-0D[LPXP

7DEOH(OHYDWLRQFP 



(



)



&

GSD

(



)



&



(



)



&

GSD

(



)



&



7RSRI'3ODWHXQGHU1R))OH)RRW

7DEOH(OHYDWLRQFP 



(



)



&

GSD

(



)



&



(



)



&

GSD

(



)



&



%RWWRPRI+RUL]RQWDO6XSSRUW

7RSRI&ROXPQ

7DEOH(OHYDWLRQFP 



(



)



&

GSD

(



)



&



(



)



&

GSD

(



)



&



6XSSRUW&ROXPQ%RWWRP

7DEOH(OHYDWLRQFP 

$OO

(

D 

 D 

)

 D 

&

1RWHV

D  7KLVLVWKHLURQGSDDWWKHORZHVWHOHYDWLRQUHSRUWHGLQ7DEOH FPEHORZWRSRIVXSSRUW IHHW 7KHERWWRP

RIWKHVXSSRUWFROXPQLVRYHUIHHWEHORZWKLVUHSRUWHGLURQGSDHOHYDWLRQ IWIURPWKHWRSWRERWWRPRIVXSSRUW>E@ 

7KHWRSRIWKHVXSSRUWFROXPQERWWRPIRRWLVIHHWEHORZWKLVUHSRUWHGLURQGSDHOHYDWLRQ7KHUHIRUHLURQGSDDQGDQ\\

DVVRFLDWHG HPEULWWOHPHQW DW WKHVH ORFDWLRQV LV QHJOLJLEOH (PEULWWOHPHQW QHHG QRW EH FRQVLGHUHG LQ WKH VXSSRUW ERWWRP

FRPSRQHQWV

E  7KHFRQYHUVLRQRIGHOWDWHPSHUDWXUH 7 LQGHJUHHV&HOVLXVWR)DKUHQKHLWLV7) 7&





 6WUDLQ5DWH(IIHFWV

3HUWKHJXLGDQFHLQ6HFWLRQRI185(*>@VWUDLQUDWHVDVVRFLDWHGZLWKG\\QDPLFORDGLQJIRU

HDUWKTXDNH RU SLSH EUHDN VFHQDULRV VKRXOG EH DGGUHVVHG LH WKH UDWH RI ORDG DSSOLFDWLRQ  3HU

>































@DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

>







































@DFH







)LJXUH>

@DFH



DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

 %XON0DWHULDO7HPSHUDWXUH

7KHEXONPDWHULDOWHPSHUDWXUHRUQRUPDORSHUDWLQJWHPSHUDWXUHRIWKH539VXSSRUWVLVDQLQSXWIRUWKH

IUDFWXUHWRXJKQHVVGHWHUPLQDWLRQ)LJXUHLQWKH6W/XFLH8QLW8)6$5$SSHQGL[+>@SURYLGHVD

WHPSHUDWXUH GLVWULEXWLRQ GXULQJ VWHDG\\VWDWH QRUPDO RSHUDWLQJ FRQGLWLRQV IRU WKH KRW OHJ VXSSRUW 7KH

WHPSHUDWXUHGLVWULEXWLRQGXULQJVWHDG\\VWDWHQRUPDORSHUDWLQJFRQGLWLRQVIRUWKHFROGOHJ539VXSSRUWVLV

QRWDYDLODEOH$VLOOXVWUDWHGLQ)LJXUHWKHKRWOHJUHDFWRUVXSSRUWIRRWORFDWLRQLV)>











@DFH)UDFWXUHWRXJKQHVVLVGHWHUPLQHGIRUERWKWKH

KRWDQGFROGOHJVXSSRUWQRUPDORSHUDWLQJWHPSHUDWXUHVDQGUHSRUWHGLQ7DEOHIRU6W/XFLH8QLW7KH

OLPLWLQJ FROG OHJ 539 VXSSRUW IUDFWXUH WRXJKQHVV LV FRQVHUYDWLYHO\\ XVHG IRU WKH DOORZDEOH IODZ VL]H

HYDOXDWLRQ

7KHUHLVQRDYDLODEOHWKHUPDODQDO\\VLVRIWKHQRUPDORSHUDWLQJFRQGLWLRQVIRUWKH6W/XFLH8QLW539

VXSSRUWV>















@DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ



)LJXUH6W/XFLH8QLW5396XSSRUW1RUPDO2SHUDWLRQ7HPSHUDWXUH>@



7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

,QLWLDO1LO'XFWLOLW\\7UDQVLWLRQ7HPSHUDWXUH

6W/XFLH8QLW539VXSSRUWVDUHGHWDLOHGIDEULFDWHGDQGGHOLYHUHGSHU6SHFLILFDWLRQ)/2>D@

DQGLWVDGGHQGXP>E@DQG8QLWSHU6SHFLILFDWLRQ)/2>F@7KHVSHFLILFDWLRQVVWDWHWKDW

XQOHVVRWKHUZLVHVSHFLILHGRQWKHGUDZLQJVVWUXFWXUDVWHHOVKDOOEHLQDFFRUGDQFHZLWK$6706SHFLILFDWLRQ

$+RZHYHUWKH539VXSSRUWVGUDZLQJV6KHHWRI>D@DQG6KHHWRI>E@VSHFLI\\WKDWVWHHOVKDOO

EH$670$ XQOHVV RWKHUZLVH QRWHG 7KHUHIRUH WKH$670$ PDWHULDO LV QRW DSSOLFDEOH WR WKH

6W/XFLH8QLWVDQG539VXSSRUWVIUDFWXUHPHFKDQLFVHYDOXDWLRQKHUHLQ)RUERWKXQLWVVRPHFRPSRQHQW

SLHFHVDUHZHOGHGSODWH$670$&ODVV*UDGH%SHUGUDZLQJV>D@DQG>E@

>



























@DFH



7DEOH>

@DFH





DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

 6W/XFLH&0755HYLHZ

1R&075VZLWK>

@DFHIRUWKHVWUXFWXUDOO\\VLJQLILFDQWVXSSRUWVWHHOVZHUHREWDLQHGIRU6W/XFLH

8QLW>



@DFH7KHDYDLODEOH6W/XFLH8QLW&075VKDYHEHHQUHYLHZHGDQGDUHVXPPDUL]HGLQWKLVVHFWLRQ

HOG

7KHDYDLODEOH6W/XFLH8QLWZHOG&075VKHHWVZHUHUHYLHZHGZLWKWKH>







@DFH



7DEOH>

@DFH



$670$6WHHO3ODWHV

7KH$670$&075VIRU6W/XFLH8QLWZHUHUHYLHZHGZLWKWKH>













@DFH





DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

7DEOH>

@DFH





$670$%6WHHO3ODWHV

7KH$670$&075VIRU6W/XFLH8QLWZHUHUHYLHZHGZLWKWKH>











@DFH



7DEOH>

@DFH







DFH

DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

 (VWLPDWLRQRI8QLUUDGLDWHG)UDFWXUH7RXJKQHVV

>















@DFH



7DEOH>



@DFH







DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ





)LJXUH>

@DFH







DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

 ([DPSOHRI)UDFWXUH7RXJKQHVV'HWHUPLQDWLRQE\\&XUYH6KLIW$670$IRU

6W/XFLH8QLW

7KHGHWHUPLQDWLRQRIIUDFWXUHWRXJKQHVVLVGHVFULEHGLQGHWDLOLQWKLVVHFWLRQIRUWKH6W/XFLH8QLW$670

$ PDWHULDO >





























@DFH

7KHIUDFWXUHWRXJKQHVVYDOXHVIRUDOO6W/XFLH8QLWVXSSRUWVWHHOVLQFOXGLQJ$670$DQGZHOG

PDWHULDOLVSURYLGHGLQ7DEOH





7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ



)LJXUH$670$7KLQ3ODWHV)UDFWXUH7RXJKQHVV+/-+LJKHVW)OXHQFHDW()3<



)LJXUH$670$7KLQ3ODWH)UDFWXUH7RXJKQHVV+/-7RSRI+RUL]RQWDO6XSSRUW)OXHQFHDW

()3<

DFH

DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

 $670$ &ROXPQDQG+RUL]RQWDO6XSSRUW&RPSRQHQWVIRU6W/XFLH8QLW 

7KHFROXPQVDQGKRUL]RQWDOVXSSRUWLQWKH539VXSSRUWV\\VWHPDUHODUJHO\\PDGHRI$670$SODWHV

SHUWKHVSHFLILFDWLRQ>D@DQGGUDZLQJ>D@>













 



















@DFH

7KHIUDFWXUHWRXJKQHVVYDOXHVIRUDOO6W/XFLH8QLWVXSSRUWVWHHOV LQFOXGLQJ$670$PDWHULDO

ZKLFKLVGHVFULEHGLQ6HFWLRQ DQGZHOGPDWHULDODUHSURYLGHGLQ7DEOH



 $670$% 6W/XFLH8QLW 

>











@DFH

7KHIUDFWXUHWRXJKQHVVYDOXHVIRUDOO6W/XFLH8QLWVXSSRUWVWHHOVLQFOXGLQJ$670$PDWHULDO

ZKLFKLVGHVFULEHGLQ6HFWLRQ DQGZHOGPDWHULDODUHSURYLGHGLQ7DEOH



 $670$ %ROWVIRU6W/XFLH8QLWVDQG 

7KHEROWVDWWKHWRSRIWKHFROXPQVRIWKH539VXSSRUWV\\VWHPVDUHPDGHRI$PDWHULDO7KHGLDPHWHU

RIWKH6W/XFLHEROWVLV'>

















@DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

>













@DFH

7KHIUDFWXUHWRXJKQHVVYDOXHVIRUWKH6W/XFLH8QLWVDQGEROWPDWHULDO $670$ DUHSURYLGHGLQ

7DEOHDQG7DEOH



 )UDFWXUH7RXJKQHVV5HVXOWV

7KHDGMXVWHGUHIHUHQFHWHPSHUDWXUHDQGDSSOLFDEOHIUDFWXUHWRXJKQHVVRIWKH539VXSSRUWVDW6W/XFLH

8QLWVDQGDUHVKRZQLQ7DEOHDQG7DEOHUHVSHFWLYHO\\XVLQJWKHPHWKRGRORJ\\DQGLQSXWV

GLVFXVVHGLQ6HFWLRQWKURXJK6HFWLRQ

7KHLURQGSDYDOXHVIURP6HFWLRQDUHXVHGWRGHWHUPLQHWKHHPEULWWOHGIUDFWXUHWRXJKQHVV7KH1'77

LVEDVHGRQ)LJXUHRI185(*XVLQJWKHFRQVHUYDWLYHO\\ELDVHGIXOOVSHFWUXPIOXHQFHHPEULWWOHPHQW

HIIHFWVUHVXOWLQJIURPFDOHQGDU\\HDUVFDOHQGDU\\HDUVGSD()3<V FDOHQGDU\\HDUV DQG

()3<GSDRIUDGLDWLRQ7KHLQLURQGSDDFFRXQWVIRUDQDO\\WLFDOXQFHUWDLQWLHVDVVRFLDWHGZLWK

WKHPHWKRGRORJ\\XVHGWRFDOFXODWHHPEULWWOHPHQWRIWKH6W/XFLH539VXSSRUWVWUXFWXUH%RXQGLQJLQLWLDO

UHIHUHQFHWHPSHUDWXUHVDUHXVHGZLWKDGMXVWPHQWIRUG\\QDPLFHIIHFWVRQIUDFWXUHWRXJKQHVV





7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

7DEOH)UDFWXUH7RXJKQHVVIRU6W/XFLH8QLW0DWHULDO&RPSRQHQWV





DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

7DEOH)UDFWXUH7RXJKQHVVIRU6W/XFLH8QLW0DWHULDO&RPSRQHQWV

DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ



675(66,17(16,7<)$&7256$1'32678/$7(')/$:6

$ZLGHUDQJHRIVWUHVVLQWHQVLW\\IDFWRUPHWKRGRORJLHVZHUHFRQVLGHUHGLQWKHDQDO\\VLVRIOLQHDUHODVWLF

IUDFWXUHPHFKDQLFVWRDFFRXQWIRUWKHVXSSRUWJHRPHWU\\ EROWDQGIODWSODWHPRGHOV DQGIRUIODZVKDSHV

LQILQLWHO\\ORQJHGJHIODZVDQGVHPLHOOLSWLFDOIODZV 7KHSUHYDOHQWFUDFNRSHQLQJVWUHVVFRPSRQHQWVDUH

WKHVWUHVVHVQRUPDOWRWKHFUDFNIDFHKRZHYHUVKHDUVWUHVVHVDUHDOVRSUHVHQWLQWKHVXSSRUWV>





@DFH

DUHWKHQXVHGWRFDOFXODWHWKH0RGH,VWUHVVLQWHQVLW\\IDFWRUVZKLFKFDQEHHTXDWHGWRWKHIUDFWXUHWRXJKQHVV

RIWKHPDWHULDOWREDFNFDOFXODWHWKHFULWLFDOIODZVL]HV GLVFXVVHGLQ6HFWLRQ 6WUHVVLQWHQVLW\\IDFWRUVIRU

0RGH,,FUDFNRSHQLQJDOVRGHQRWHGDV.,,DUHFRQVLGHUHGIRUWKHEROWVORFDWHGDWWKHVRFNHWVOLGHUHVWUDLQLQJ

SODWHVZKHUHWKHPDLQORDGLVEDVHGRQVKHDUVWUHVV$JHQHUDOGHVFULSWLRQRIWKHVWUHVVLQWHQVLW\\IDFWRU

PHWKRGRORJLHVLVSURYLGHGLQ7DEOHIRUHDFKRIWKHILYH539VXSSRUWFRPSRQHQWVDQGWKHIROORZLQJ

VHFWLRQVSURYLGHPRUHGHWDLOIRUHDFKVWUHVVLQWHQVLW\\IDFWRUFRUUHODWLRQ

7KHFUDFNWLSVWUHVVLQWHQVLW\\IDFWRUVDUHGHWHUPLQHGEDVHGRQWKHVWUHVVLQWHQVLW\\IDFWRUH[SUHVVLRQVIURP

$3,  (GLWLRQ >@ DQG7DGD >@7KH VWUHVV LQWHQVLW\\ IDFWRU GDWDEDVHV DUH LQGXVWU\\ DFFHSWHG

VROXWLRQVDQGKDYHEHHQXVHGIUHTXHQWO\\IRUSUHYLRXVIUDFWXUHPHFKDQLFVSURMHFWV>





@DFH

$ YDULHW\\ RI IODZ VKDSHV DUH FRQVLGHUHG LQ WKH IUDFWXUH PHFKDQLFV DQDO\\VLV EDVHG RQ WKH SUHYLRXVO\\

PHQWLRQHGVWUHVVLQWHQVLW\\IDFWRUGDWDEDVHVWRSURYLGHDSDUDPHWULFVWXG\\RIFULWLFDOIODZVL]HVZLWKLQHDFK

RIWKH539VXSSRUWFRPSRQHQWV7KHIODZVKDSHVZKLFKDUHDSSURSULDWHIRUWKHYDULRXVVXSSRUWJHRPHWU\\

EROWDQGIODWSODWHPRGHOV DUHGHVFULEHGLQ7DEOH7KHVHIODZVKDSHVLQFOXGHLQILQLWHO\\ORQJHGJH

IODZVLQSODWHVDQGVHPLHOOLSWLFDOIODZVZLWKDVSHFWUDWLRV $5IODZOHQJWKIODZGHSWK RIDQGDV

GLVFXVVHGLQ6HFWLRQ1RWHWKDWWKHZHOGHGSODWHFRPSRQHQWVDUHVXEMHFWHGWRZHOGLQJUHVLGXDOVWUHVV

DVGHVFULEHGLQ6HFWLRQ7KHEDUVKDSHGFRPSRQHQWVDUHDQDO\\]HGZLWKFRQWLQXRXVFLUFXPIHUHQWLDO

VWUDLJKWIURQWDQGVHPLFLUFXODUIURQWIODZVKDSHVDVGLVFXVVHGLQ6HFWLRQ



 3ODWH0RGHO

7KHZHOGHGSODWHVZLWKLQWKH539KRUL]RQWDOVXSSRUWDUHPRGHOHGDVDIODWSODWH7KHILUVWSRVWXODWHGIODZ

FDVHLQWKHIODWSODWHPRGHOLVDVHPLHOOLSWLFDOIODZZLWKDVSHFWUDWLRV IODZOHQJWKIODZGHSWK RIDQG

DVDSDUDPHWULFVWXG\\RIFULWLFDOIODZVL]HV$JUDSKLFDOUHSUHVHQWDWLRQRIDVHPLHOOLSWLFDOIODZLQDSODWH

PRGHOLVSURYLGHGLQ)LJXUHD7KHVWUHVVLQWHQVLW\\IDFWRULVFDOFXODWHGDWWKHVXUIDFHSRLQW  VHH

)LJXUHD DQGWKHGHHSHVWSRLQW   DORQJWKHSRVWXODWHGFUDFNIURQWDQGWKHOLPLWLQJFULWLFDOIODZ

VL]HV DUH UHSRUWHG LQ 6HFWLRQ  7KH VWUHVV SURYLGHG LQ 6HFWLRQ  6HFWLRQ  DQG 6HFWLRQ  LV

FRQVHUYDWLYHO\\DSSOLHGDVFRQVWDQWWKURXJKWKHZDOOWKLFNQHVV LHDVDSXUHPHPEUDQHVWUHVV 7KHVHPL

HOOLSWLFDOIODZVLQFOXGHGZHOGLQJUHVLGXDOVWUHVVVLQFHWKHIODZVDUHSRVWXODWHGQHDUWKHZHOGVRIWKHSODWH

FRPSRQHQWV7KHVWUHVVLQWHQVLW\\IDFWRUFRUUHODWLRQIRUWKHVHPLHOOLSWLFDOIODZZLWKSXUHPHPEUDQHVWUHVV

LVSURYLGHGLQ$3,>@6HFWLRQ%DVIROORZV





7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

KHUH

., VWUHVVLQWHQVLW\\IDFWRU NVLLQ 

0P IDFWRUWRDFFRXQWIRUIODZVL]HDVSHFWUDWLRDQGJHRPHWU\\

P PHPEUDQHVWUHVV NVL 

D IODZGHSWKRUVL]H LQ 

4  DF IRUDF

F KDOIIODZOHQJWK LQ 



7KHZHOGHGSODWHFRPSRQHQWVDOVRFRQVLGHUHGDQLQILQLWHO\\ORQJHGJHIODZ$JUDSKLFDOUHSUHVHQWDWLRQRIDQ

LQILQLWHO\\ORQJHGJHIODZLQDSODWHPRGHOLVSURYLGHGLQ)LJXUHE7KHVWUHVVSURYLGHGLQ6HFWLRQ

6HFWLRQDQG6HFWLRQLVFRQVHUYDWLYHO\\DSSOLHGDVFRQVWDQWWKURXJKWKHZDOOWKLFNQHVV LHDVDSXUH

PHPEUDQH VWUHVV 7KH LQILQLWHO\\ ORQJ HGJH IODZV LQFOXGHG ZHOGLQJ UHVLGXDO VWUHVV VLQFH WKH IODZV DUH

SRVWXODWHGQHDUWKHZHOGVRIWKHSODWHFRPSRQHQWV7KHVWUHVVLQWHQVLW\\IDFWRUIRUWKHLQILQLWHO\\ORQJHGJH

IODZLQDSODWHZLWKSXUHPHPEUDQHVWUHVVLVSURYLGHGLQ$3,>@6HFWLRQ%DVIROORZV



KHUH

., VWUHVVLQWHQVLW\\IDFWRU NVLLQ 

  • R LQIOXHQFHFRHIILFLHQWWRDFFRXQWIRUIODZVL]HDQGJHRPHWU\\

R PHPEUDQHVWUHVV NVL 

D IODZGHSWKRUVL]H LQ 





)LJXUH3RVWXODWHG6XUIDFH)ODZVLQD3ODWH0RGHO

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

 5RXQG%DU0RGHO IRU%ROWV 

7KHEROWVZKLFKFRQQHFWWKHFROXPQWRWKHERWWRPRIWKHKRUL]RQWDOVXSSRUWZHUHFRQVHUYDWLYHO\\DVVXPHG

WRKDYHFRPSOHWHO\\FLUFXPIHUHQWLDOIODZVRULHQWHGSHUSHQGLFXODUWRWKHEROWFHQWHUOLQHVDQGWKHUHIRUH

UHVSRQVLYH WR EROW WHQVLOH ORDGLQJ,Q DGGLWLRQ WKH VWUDLJKW IURQW DQG VHPLFLUFXODU FUDFN PRGHOV DUH

SRVWXODWHGDVDSDUDPHWULFVWXG\\DQGIRUOHVVOLPLWLQJFULWLFDOIODZVL]HUHVXOWV$JUDSKLFDOUHSUHVHQWDWLRQRI

WKHWKUHHIODZW\\SHVLQDEDUPRGHOLVSURYLGHGLQ)LJXUH7KHD[LDOIRUFHVKHDUVWUHVVDQGPRPHQWV

RQWKHEDUFRPSRQHQWVDUHSURYLGHGLQ6HFWLRQ7KHVWUHVVLQWHQVLW\\IDFWRUIRUWKHEROWVLVEDVHGRQ

$3,>@6HFWLRQV%%DQG%IRUURXQGEDUVXUIDFHFLUFXPIHUHQWLDOFUDFN+/-

VWUDLJKW IURQW FUDFN DQG VHPLFLUFXODU IURQW FUDFN UHVSHFWLYHO\\ ZLWKWKURXJKZDOOPHPEUDQH VWUHVV DV

IROORZV



KHUH

., VWUHVVLQWHQVLW\\IDFWRU NVLLQ 

0P LQIOXHQFHIDFWRUWRDFFRXQWIRUIODZVL]HDQGJHRPHWU\\

P PHPEUDQHVWUHVV NVL 

D IODZGHSWKRUVL]H LQ 



7KHEROWVORFDWHGDWWKHVRFNHWVOLGHUHVWUDLQLQJSODWHVDUHVXEMHFWHGWRVKHDUVWUHVVZKLFKFDXVHV0RGH,,

DQG0RGH,,,VWUHVVLQWHQVLW\\IDFWRUV VHH)LJXUHIRUDJUDSKLFDOUHSUHVHQWDWLRQRIDVLQJOHHGJHIODZLQ

DSODWHPRGHO 7KH0RGH,,DQG0RGH,,,VWUHVVLQWHQVLW\\IDFWRUVIRUDVLQJOHHGJHFUDFNLQWKHEROWDUH

SURYLGHGEDVHGRQ6HFWLRQRI7DGD>@DVIROORZV





KHUH

.,,DQG.,,, 0RGH,,DQG0RGH,,,VWUHVVLQWHQVLW\\IDFWRUV NVLLQ 

),, DE DQG),,, DE  LQIOXHQFHFRHIILFLHQWWRDFFRXQWIRUIODZVL]H D DQGJHRPHWU\\ WKLFNQHVV 

DQGO VKHDUVWUHVV NVL 

D IODZGHSWKRUVL]H LQ 

E WKLFNQHVVRIFRPSRQHQW LQ 

$UHYLHZRI0RGH,,DQG0RGH,,,LQIOXHQFHFRHIILFLHQWVGHWHUPLQHGWKDW),, DE ZLOOSURYLGHDPRUHOLPLWLQJ

FULWLFDOIODZVL]HWKXVFULWLFDOIODZVL]HLVRQO\\FDOFXODWHGDQGUHSRUWHGEDVHGRQWKH0RGH,,VWUHVVLQWHQVLW\\

IDFWRU7KH0RGH,,VWUHVVLQWHQVLW\\IDFWRULVEDVHGRQD>













@DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ



D °&RQWLQXRXV6XUIDFH)ODZ





E 6WUDLJKW)URQWDQG6HPL&LUFXODU6XUIDFH&UDFN



)LJXUH3RVWXODWHG)ODZVLQD5RXQG%DU0RGHO







)LJXUH3RVWXODWHG6LQJOH(GJH)ODZZLWK6KHDU6WUHVVLQD3ODWH0RGHO

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

7DEOH0RGH,DQG,,6WUHVV,QWHQVLW\\)DFWRU0RGHO'HVFULSWLRQ

&RPSRQHQW

0RGHO6KDSH

)ODZ

&RQILJXUDWLRQ

6WUHVV,QWHQVLW\\)DFWRU

5HIHUHQFHDQG6HFWLRQ1R

)LJXUHRI3RVWXODWHG

)ODZ6KDSH

$OO:HOGHG3ODWHV

3ODWH D 

0RGH,6WUHVV

,QWHQVLW\\)DFWRU

6HPL(OOLSWLFDO

$3,6HFWLRQ%>@

)LJXUHD

,QILQLWH

$3,6HFWLRQ%>@

)LJXUHE

%ROWV&RQQHFWLQJ&ROXPQDQG

%RWWRPRI+RUL]RQWDO6XSSRUW

%DU

0RGH,6WUHVV

,QWHQVLW\\)DFWRU

&RQWLQXRXV

&LUFXPIHUHQWLDO

$3,6HFWLRQ%>@

)LJXUH

6WUDLJKW)URQW

$3,6HFWLRQ%>@

6HPL&LUFXODU)URQW

$3,6HFWLRQ%>@

%ROWVDW6RFNHW6OLGH$VVHPEO\\

5HFWDQJXODU%DU E 

0RGH,,6WUHVV

,QWHQVLW\\)DFWRU

6LQJOH(GJH&UDFN

7DGD3DUW6HFWLRQ$>@

)LJXUH

1RWHV













DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ



$//2:$%/()/$:6,=(6

7KHJRDORIWKHIUDFWXUHPHFKDQLFVDQDO\\VLVLVWRGHPRQVWUDWHWKDWWKHFDOFXODWHGFULWLFDOIODZVL]HVEDVHG

RQ\\HDUVRIQHXWURQHPEULWWOHPHQWDUHVXIILFLHQWO\\ODUJHDVFRPSDUHGWR>













































































@DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

>











































@DFH

7KHDOORZDEOHIODZVL]HVLQ7DEOHDUHFRPSDUHGDJDLQVWWKHFDOFXODWHGFULWLFDOIODZVL]HVLQ6HFWLRQWR

GHPRQVWUDWHWKDWWKH6W/XFLH8QLWVDQG539VXSSRUWVDUHIODZWROHUDQWIRU\\HDUVRIVHUYLFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

7DEOH$OORZDEOH)ODZ6L]HV







DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

7DEOH&RQWLQXHG$OORZDEOH)ODZ6L]HV



DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

7DEOH&RQWLQXHG$OORZDEOH)ODZ6L]HV













DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ



&5,7,&$/)/$:6,=(&$/&8/$7,215(68/76

$VGLVFXVVHGLQVHYHUDOSUHYLRXVVHFWLRQVRIWKLVUHSRUWWKHJRDORIWKHIUDFWXUHPHFKDQLFVDQDO\\VLVIRU

6W/XFLH8QLWVDQG539VXSSRUWVLVWRMXVWLI\\WKDWSODQWOLIHH[WHQVLRQWR\\HDUVGRHVQRWFDXVHD

VWUXFWXUDOLQWHJULW\\FRQFHUQEDVHGRQUDGLDWLRQHPEULWWOHPHQW2QHWHFKQLTXHXVHGWRGHPRQVWUDWHFRQWLQXHG

RSHUDELOLW\\RIWKH539VXSSRUWVSDVW\\HDUVLVWRFRPSDUHWKHFULWLFDOIODZVL]HVFDOFXODWHGLQWKHDQDO\\VLV

KHUHLQWR>



















 @DFH 7KHVH SUHYLRXVO\\ PHQWLRQHG

DOORZDEOHIODZVL]HVDUHGHVFULEHGLQGHWDLOLQ6HFWLRQRIWKLVUHSRUW

3HU6HFWLRQRI185(*WKHVXSSRUWVZRXOGGHPRQVWUDWHVDIHRSHUDWLRQZLWKFRQVLGHUDWLRQRI

QHXWURQUDGLDWLRQHPEULWWOHPHQWLIWKHIROORZLQJFULWHULDDUHPHW

 7KHLQLWLDOQLOGXFWLOLW\\WUDQVLWLRQWHPSHUDWXUHRIWKH539VXSSRUWVLVZHOOEHORZWKHPLQLPXP

RSHUDWLQJWHPSHUDWXUH

 7KHUDGLDWLRQH[SRVXUHDWWKHVXSSRUWVLVORZ

 7KHSHDNWHQVLOHVWUHVVHVDUHNVLRUOHVV

+RZHYHUDVVKRZQLQ6HFWLRQ>







@DFH7KXVDIUDFWXUHPHFKDQLFVHYDOXDWLRQLVFRPSOHWHGIRUWKH'KRUL]RQWDOSODWH

DQG 'YHUWLFDO SODWH DW WKH WRSRIWKH KRUL]RQWDO VXSSRUW WKH 'KRUL]RQWDO SODWHDWWKHERWWRP RI WKH

KRUL]RQWDOVXSSRUWWKHEROWVZKLFKFRQQHFWWKHFROXPQDQGERWWRPRIWKHKRUL]RQWDOVXSSRUWDQGWKHEROWV

DWWKHVRFNHWVOLGHUHVWUDLQLQJSODWHV7KHRWKHUFRPSRQHQWVVXFKDVWKHEDVHSODWHDQFKRUEROWVFROXPQ

DQGRWKHUZHOGHGSODWHVZLWKLQWKH539VXSSRUWV\\VWHPZLOOEHERXQGHGE\\RUDUHUHSUHVHQWHGE\\WKHILYH

FRPSRQHQWVPHQWLRQHGSUHYLRXVO\\ WKHVHRWKHUFRPSRQHQWVDUHGLVFXVVHGLQWKHYDULRXVVXEVHFWLRQVRI

6HFWLRQ 

7KLVVHFWLRQSURYLGHVWKHFULWLFDOIODZVL]HVIRUHDFKRIWKHILYHFRPSRQHQWVEDVHGRQWKHODWHVWSODQWVSHFLILF

VWUHVVHVZHOGLQJUHVLGXDOVWUHVVRSHUDWLQJFRQGLWLRQWHPSHUDWXUHVQHXWURQHPEULWWOHPHQWIRUFDOHQGDU

\\HDUV ()3< DQG\\HDUV DSSUR[LPDWHO\\()3<IRU6W/XFLH8QLWDQG()3<IRU6W/XFLH

8QLW VKLIWLQ1'77EDVHGRQ)LJXUHRI185(* UHSURGXFHGDV)LJXUHKHUHLQ DQGWKH

ODWHVWVWUHVVLQWHQVLW\\IDFWRUVXVHGLQWKHLQGXVWU\\>











@DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

>





@DFH7KH1'77

EDVHGRQWKHQHXWURQHPEULWWOHPHQWDWDQG\\HDUVLVFDOFXODWHGLQ7DEOHDQG7DEOHIRUYDULRXV

ORFDWLRQVDURXQGWKH6W/XFLH539VXSSRUWV7KH1'77IRUHDFKFRPSRQHQWLVFRQVHUYDWLYHEDVHGRQD

UHSUHVHQWDWLYHORFDWLRQWRDFFRXQWIRUHPEULWWOHPHQWHIIHFWV

,WVKRXOGEHQRWHGWKDWWKH539VXSSRUWVH[SHULHQFHYDULRXVORDGLQJFRQGLWLRQV QRUPDOXSVHWDQGIDXOWHG 

DVGLVFXVVHGLQ6HFWLRQ>















































































@DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

> 





























@DFH

(YHQZLWKWKHSUHYLRXVO\\PHQWLRQHGFRQVHUYDWLVPVPDQ\\FRPSRQHQWVLQWKHIUDFWXUHPHFKDQLFVDQDO\\VLV

KDYHODUJHPDUJLQEHWZHHQWKHDOORZDEOHIODZVL]HDQGWKHFULWLFDOIODZVL]HDVGLVFXVVHGLQ6HFWLRQ

WKURXJK6HFWLRQ



7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ



7232)+25,=217$/6833257+/-'+25,=217$/3/$7(

7KH'KRUL]RQWDOSODWH $670$ DWWKHWRSRIWKHKRUL]RQWDOVXSSRUWDQGWKHDVVRFLDWHGZHOGVDUH

VXEMHFWHGWRPRGHUDWHHPEULWWOHPHQWUHVXOWLQJLQWKHPLQLPXPIUDFWXUHWRXJKQHVVYDOXHVDVVKRZQEHORZ

VHH7DEOHDQG7DEOH 1RWHWKDWDVDVWXG\\RIIUDFWXUHWRXJKQHVVLURQGSDLVLQFUHDVHGE\\

WRDFFRXQWIRUDQDO\\WLFDOXQFHUWDLQWLHVDVVRFLDWHGZLWKWKHPHWKRGRORJ\\XVHGWRFDOFXODWHHPEULWWOHPHQWRI

WKH6W/XFLH539VXSSRUWVWUXFWXUH

6W/XFLH8QLW

>







@DFH



6W/XFLH8QLW

>







@DFH

,Q DGGLWLRQ WR WKH DSSOLHG VWUHVVHV RQ WKH KRUL]RQWDO SODWH VHH 7DEOH   ZHOGLQJ UHVLGXDO VWUHVV LV

FRQVLGHUHGSHU6HFWLRQIRUWKHSRVWXODWHGVHPLHOOLSWLFDOIODZVDQGLQILQLWHO\\ORQJHGJHIODZLQWKHZHOGHG

SRUWLRQRIWKHSODWH%DVHGRQ6HFWLRQ>







@DFH

9DULRXVSRVWXODWHGIODZVKDSHVLQDSODWHPRGHOZHUHDQDO\\]HGLQFOXGLQJDVWXG\\RIVHPLHOOLSWLFDOIODZV

ZLWKDVSHFWUDWLRV IODZOHQJWKRYHUIODZGHSWK RIDQGDQGDQLQILQLWHOHQJWKIODZLQWKHZHOG7KH

DVSHFWUDWLRVRIDQGIRUWKHVHPLHOOLSWLFDOIODZVDVZHOODVWKHLQILQLWHO\\ORQJIODZVKDSHDUHSURYLGHG

DVDSDUDPHWULFVWXG\\RIFULWLFDOIODZVL]HV7KHFDOFXODWHGFULWLFDOIODZVL]HVDUHVKRZQLQ7DEOHDDQG

7DEOHEIRUWKHSUHYLRXVO\\PHQWLRQHGSRVWXODWHGIODZVKDSHVDVZHOODVWKH>

























@DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

>





@DFHWKXVWKH

KRUL]RQWDOSODWHDWWKHWRSRIWKHKRUL]RQWDOVXSSRUWDQGDVVRFLDWHGZHOGVFRQWLQXHWREHVWUXFWXUDOO\\VWDEOH

FRQVLGHULQJ\\HDUVRIUDGLDWLRQHPEULWWOHPHQWHIIHFWVRQWKHVXSSRUWV

$VVKRZQLQ7DEOHDDQG7DEOHEWKHFKDQJHLQHPEULWWOHPHQWIURPWR\\HDUVUHVXOWVLQFULWLFDO

IODZVL]HVWKDWYDU\\E\\DSSUR[LPDWHO\\WRIRU6W/XFLH8QLWDQGDSSUR[LPDWHO\\WRIRU

6W/XFLH8QLW7KHXSSHUUDQJHRIFKDQJHLQFULWLFDOIODZVL]HV DQG LVEDVHGRQWKHSRVWXODWHG

VHPLHOOLSWLFDOIODZVL]HZLWKDVSHFWUDWLRRIDQGLVPRVWO\\GXHWRWKH>





@DFH7KHPDJQLWXGH

RIWKHFULWLFDOIODZVL]HVEHWZHHQDQG\\HDUVLVPRUHVLPLODU LQWKHUDQJHRIDSSUR[LPDWHO\\WR

IRU6W/XFLH8QLWDQGDSSUR[LPDWHO\\WRIRU6W/XFLH8QLW IRUWKHSRVWXODWHGVHPLHOOLSWLFDO

IODZVL]HZLWKDVSHFWUDWLRRIDQGWKHLQILQLWHO\\ORQJHGJHIODZ>





@DFH,QDGGLWLRQWKHGLIIHUHQFHLQFULWLFDO

IODZVL]HUHVXOWVEHWZHHQHPEULWWOHPHQWZLWKDQGZLWKRXWDQDO\\WLFDOXQFHUWDLQWLHVUDQJHVIURPWR

LHWKHPDJQLWXGHRIWKHFULWLFDOIODZVL]HVLVVLPLODU 7KXVWKHKRUL]RQWDOSODWHDWWKHWRSRIWKHKRUL]RQWDO

VXSSRUWDQGWKHDVVRFLDWHGZHOGVDUHFRQVLGHUHGWREHIODZWROHUDQWIRU\\HDUVDQGWKHUHLVQRFRQFHUQIRU

VWUXFWXUDOLQVWDELOLW\\GXHWRUDGLDWLRQHPEULWWOHPHQW



 %DVH3ODWH

>



























@DFH7KXVWKHERWWRPRIWKHFROXPQEDVHSODWH

DQGDVVRFLDWHGZHOGVDUHFRQVLGHUHGWREHIODZWROHUDQWIRU\\HDUVDQGWKHUHLVQRFRQFHUQIRUVWUXFWXUDO

LQVWDELOLW\\GXHWRUDGLDWLRQHPEULWWOHPHQW>





@DFH







7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

7DEOHD6XPPDU\\RI7RSRI+RUL]RQWDO6XSSRUW+/-'+RUL]RQWDO3ODWH&ULWLFDO)ODZ6L]H

6W/XFLH8QLW

&RPSRQHQW

)UDFWXUH

7RXJKQHVV

/RDGLQJ

&RPELQDWLRQ

&ULWLFDO)ODZ6L]H DW  D 

6HPL

(OOLSWLFDO

$5   E 

6HPL

(OOLSWLFDO

$5   E 

,QILQLWH

(GJH E 

'

+RUL]RQWDO

3ODWH

>

@DFHIRU

()3<

ZLWKRXWDQDO\\WLFDO

XQFHUWDLQWLHV 

1RUPDO







8SVHW







)DXOWHG







>

@DFHIRU

()3<

ZLWKRXWDQDO\\WLFDO

XQFHUWDLQWLHV 

1RUPDO







8SVHW







)DXOWHG







>

@DFHIRU

()3<

ZLWKDQDO\\WLFDO

XQFHUWDLQWLHV 

1RUPDO







8SVHW







)DXOWHG







>

@DFHIRU

()3<

ZLWKDQDO\\WLFDO

XQFHUWDLQWLHV 

1RUPDO







8SVHW







)DXOWHG









6HFWLRQ;,$OORZDEOH)ODZ6L]H







1RWHV

D  7KHFULWLFDOIODZVL]HVDUHGHWHUPLQHGE\\VHWWLQJWKHDSSOLHGVWUHVVLQWHQVLW\\IDFWRUHTXDOWRWKHIUDFWXUHWRXJKQHVV

DQGEDFNFDOFXODWLQJIODZVL]H3ODWHWKLFNQHVV '

E  7KHZHOGVZLWKLQWKHHQWLUH539VWUXFWXUDOVWHHOVXSSRUWVDW6W/XFLH8QLW>







@DFH





7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

7DEOHE6XPPDU\\RI7RSRI+RUL]RQWDO6XSSRUW+/-'+RUL]RQWDO3ODWH&ULWLFDO)ODZ6L]H

6W/XFLH8QLW

&RPSRQHQW

)UDFWXUH

7RXJKQHVV

/RDGLQJ

&RPELQDWLRQ

&ULWLFDO)ODZ6L]H DW  D 

6HPL

(OOLSWLFDO

$5   E 

6HPL

(OOLSWLFDO

$5   E 

,QILQLWH

(GJH E 

'

+RUL]RQWDO

3ODWH

>

@DFHIRU

()3<

ZLWKRXWDQDO\\WLFDO

XQFHUWDLQWLHV 

1RUPDO







8SVHW







)DXOWHG







>

@DFHIRU

()3<

ZLWKRXWDQDO\\WLFDO

XQFHUWDLQWLHV 

1RUPDO







8SVHW







)DXOWHG







>

@DFHIRU

()3<

ZLWKDQDO\\WLFDO

XQFHUWDLQWLHV 

1RUPDO







8SVHW







)DXOWHG







>

@DFHIRU

()3<

ZLWKDQDO\\WLFDO

XQFHUWDLQWLHV 

1RUPDO







8SVHW







)DXOWHG









6HFWLRQ;,$OORZDEOH)ODZ6L]H







1RWHV

D  7KHFULWLFDOIODZVL]HVDUHGHWHUPLQHGE\\VHWWLQJWKHDSSOLHGVWUHVVLQWHQVLW\\IDFWRUHTXDOWRWKHIUDFWXUHWRXJKQHVV

DQGEDFNFDOFXODWLQJIODZVL]H3ODWHWKLFNQHVV '

E  7KHZHOGVZLWKLQWKHHQWLUH539VWUXFWXUDOVWHHOVXSSRUWVDW6W/XFLH8QLW>







@DFH









7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ



7232)+25,=217$/6833257+/-'9(57,&$/3/$7(

7KH'YHUWLFDOSODWH $670$&ODVV*UDGH% DWWKHWRSRIWKHKRUL]RQWDOVXSSRUWDQGWKHDVVRFLDWHG

ZHOGVDUH VXEMHFWHG WRPRGHUDWHHPEULWWOHPHQW UHVXOWLQJLQ WKHPLQLPXP IUDFWXUH WRXJKQHVVYDOXHVDV

VKRZQEHORZ VHH7DEOHDQG7DEOH 1RWHWKDWDVDVWXG\\LURQGSDLVLQFUHDVHGE\\WRDFFRXQW

IRUDQDO\\WLFDOXQFHUWDLQWLHVDVVRFLDWHGZLWKWKHPHWKRGRORJ\\XVHGWRFDOFXODWHHPEULWWOHPHQWRIWKH6W/XFLH

539VXSSRUWVWUXFWXUH

6W/XFLH8QLW

>







@DFH



6W/XFLH8QLW

>







@DFH

,QDGGLWLRQWRWKHDSSOLHGVWUHVVHVRQWKHYHUWLFDOSODWH VHH7DEOH ZHOGLQJUHVLGXDOVWUHVVLVFRQVLGHUHG

SHU6HFWLRQIRUWKHSRVWXODWHGVHPLHOOLSWLFDOIODZDQGLQILQLWHO\\ORQJHGJHIODZLQWKHZHOGHGSRUWLRQRI

WKHSODWH%DVHGRQ6HFWLRQ>





@DFH

9DULRXVSRVWXODWHGIODZVKDSHVLQDSODWHPRGHOZHUHDQDO\\]HGLQFOXGLQJDVWXG\\RIVHPLHOOLSWLFDOIODZV

ZLWKDVSHFWUDWLRV IODZOHQJWKRYHUIODZGHSWK RIDQGDQGDQLQILQLWHOHQJWKIODZLQWKHZHOG7KH

DVSHFWUDWLRVRIDQGIRUWKHVHPLHOOLSWLFDOIODZVDVZHOODVWKHLQILQLWHO\\ORQJIODZVKDSHDUHSURYLGHG

DVDSDUDPHWULFVWXG\\RIFULWLFDOIODZVL]HV7KHFDOFXODWHGFULWLFDOIODZVL]HVDUHVKRZQLQ7DEOHDDQG

7DEOHEIRUWKHSUHYLRXVO\\PHQWLRQHGSRVWXODWHGIODZVKDSHVDVZHOODVWKH>



























@DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

>



@DFHWKXVWKHYHUWLFDO

SODWHDWWKHWRSRIWKHKRUL]RQWDOVXSSRUWDQGDVVRFLDWHGZHOGVFRQWLQXHWREHVWUXFWXUDOO\\VWDEOHFRQVLGHULQJ

\\HDUVRIUDGLDWLRQHPEULWWOHPHQWHIIHFWVRQWKHVXSSRUWV

$VVKRZQLQ7DEOHDDQG7DEOHEWKHFKDQJHLQHPEULWWOHPHQWIURPWR\\HDUVUHVXOWVLQFULWLFDO

IODZVL]HVWKDWYDU\\E\\DSSUR[LPDWHO\\WRIRU6W/XFLH8QLWVDQG7KHXSSHUUDQJHRIFKDQJHLQ

FULWLFDOIODZVL]HV  LVEDVHGRQWKHSRVWXODWHGVHPLHOOLSWLFDOIODZVL]HZLWKDVSHFWUDWLRRIDQGLV

PRVWO\\GXHWRWKH>





@DFH7KHPDJQLWXGHRIWKHFULWLFDOIODZVL]HVEHWZHHQDQG\\HDUV

LVPRUHVLPLODU RQWKHUDQJHRIDSSUR[LPDWHO\\WRIRU6W/XFLH8QLWVDQG IRUWKHSRVWXODWHG

VHPLHOOLSWLFDOIODZVL]HZLWKDVSHFWUDWLRRIDQGWKHLQILQLWHO\\ORQJHGJHIODZ>





@DFH,QDGGLWLRQWKHGLIIHUHQFH

LQFULWLFDOIODZVL]HUHVXOWVEHWZHHQHPEULWWOHPHQWZLWKDQGZLWKRXWDQDO\\WLFDOXQFHUWDLQWLHVUDQJHVIURP

WR LHWKHPDJQLWXGHRIWKHFULWLFDOIODZVL]HVLVVLPLODU 7KXVWKHYHUWLFDOSODWHDWWKHWRSRIWKH

KRUL]RQWDOVXSSRUWDQGWKHDVVRFLDWHGZHOGVDUHFRQVLGHUHGWREHIODZWROHUDQWIRU\\HDUVDQGWKHUHLVQR

FRQFHUQIRUVWUXFWXUDOLQVWDELOLW\\GXHWRUDGLDWLRQHPEULWWOHPHQW









7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

7DEOHD6XPPDU\\RI7RSRI+RUL]RQWDO6XSSRUW+/-'9HUWLFDO3ODWH&ULWLFDO)ODZ6L]H

6W/XFLH8QLW

&RPSRQHQW

)UDFWXUH

7RXJKQHVV

/RDGLQJ

&RPELQDWLRQ

&ULWLFDO)ODZ6L]H DW  D 

6HPL

(OOLSWLFDO

$5   E 

6HPL

(OOLSWLFDO

$5   E 

,QILQLWH

(GJH E 

'9HUWLFDO

3ODWH

>

@DFHIRU

()3<

ZLWKRXWDQDO\\WLFDO

XQFHUWDLQWLHV 

1RUPDO







8SVHW







)DXOWHG







>

@DFHIRU

()3<

ZLWKRXWDQDO\\WLFDO

XQFHUWDLQWLHV 

1RUPDO







8SVHW







)DXOWHG







>

@DFHIRU

()3<

ZLWKDQDO\\WLFDO

XQFHUWDLQWLHV 

1RUPDO







8SVHW







)DXOWHG







>

@DFHIRU

()3<

ZLWKDQDO\\WLFDO

XQFHUWDLQWLHV 

1RUPDO







8SVHW







)DXOWHG









6HFWLRQ;,$OORZDEOH)ODZ6L]H







1RWHV

D  7KHFULWLFDOIODZVL]HVDUHGHWHUPLQHGE\\VHWWLQJWKHDSSOLHGVWUHVVLQWHQVLW\\IDFWRUHTXDOWRWKHIUDFWXUHWRXJKQHVV

DQGEDFNFDOFXODWLQJIODZVL]H3ODWHWKLFNQHVV '

E  7KHZHOGVZLWKLQWKHHQWLUH539VWUXFWXUDOVWHHOVXSSRUWVDW6W/XFLH8QLW>







@DFH





7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

7DEOHE6XPPDU\\RI7RSRI+RUL]RQWDO6XSSRUW+/-'9HUWLFDO3ODWH&ULWLFDO)ODZ6L]H

6W/XFLH8QLW

&RPSRQHQW

)UDFWXUH

7RXJKQHVV

/RDGLQJ

&RPELQDWLRQ

&ULWLFDO)ODZ6L]H DW  D 

6HPL

(OOLSWLFDO

$5   E 

6HPL

(OOLSWLFDO

$5   E 

,QILQLWH

(GJH E 

'9HUWLFDO

3ODWH

>

@DFHIRU

()3<

ZLWKRXWDQDO\\WLFDO

XQFHUWDLQWLHV 

1RUPDO







8SVHW







)DXOWHG







>

@DFHIRU

()3<

ZLWKRXWDQDO\\WLFDO

XQFHUWDLQWLHV 

1RUPDO







8SVHW







)DXOWHG







>

@DFHIRU

()3<

ZLWKDQDO\\WLFDO

XQFHUWDLQWLHV 

1RUPDO







8SVHW







)DXOWHG







>

@DFHIRU

()3<

ZLWKDQDO\\WLFDO

XQFHUWDLQWLHV 

1RUPDO







8SVHW







)DXOWHG









6HFWLRQ;,$OORZDEOH)ODZ6L]H







1RWHV

D  7KHFULWLFDOIODZVL]HVDUHGHWHUPLQHGE\\VHWWLQJWKHDSSOLHGVWUHVVLQWHQVLW\\IDFWRUHTXDOWRWKHIUDFWXUHWRXJKQHVV

DQGEDFNFDOFXODWLQJIODZVL]H3ODWHWKLFNQHVV '

E  7KHZHOGVZLWKLQWKHHQWLUH539VWUXFWXUDOVWHHOVXSSRUWVDW6W/XFLH8QLW>







@DFH







7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ



%277202)+25,=217$/6833257+/-'+25,=217$/3/$7(

7KH'KRUL]RQWDOSODWH $670$ DWWKHERWWRPRIWKHKRUL]RQWDOVXSSRUWDQGWKHDVVRFLDWHGZHOGVDUH

VXEMHFWHGWRKLJKHPEULWWOHPHQWUHVXOWLQJLQWKHPLQLPXPIUDFWXUHWRXJKQHVVYDOXHVDVVKRZQEHORZ VHH

7DEOHDQG7DEOH 1RWHWKDWDVDVWXG\\RIIUDFWXUHWRXJKQHVVLURQGSDLVLQFUHDVHGE\\WR

DFFRXQWIRUDQDO\\WLFDOXQFHUWDLQWLHVDVVRFLDWHGZLWKWKHPHWKRGRORJ\\XVHGWRFDOFXODWHHPEULWWOHPHQWRIWKH

6W/XFLH539VXSSRUWVWUXFWXUH,WLVVKRZQWKDWWKHFKDQJHLQQHXWURQHPEULWWOHPHQWRYHUWLPHLVQRW

VLJQLILFDQW LHWKHFKDQJHLQIUDFWXUHWRXJKQHVVLVVPDOOIURP\\HDUVWR\\HDUV VLQFHWKHERWWRPRIWKH

KRUL]RQWDOVXSSRUWLVFORVHWRWKHYLFLQLW\\RIWKH539DFWLYHFRUH

6W/XFLH8QLW

>







@DFH



6W/XFLH8QLW

>







@DFH

,Q DGGLWLRQ WR WKH DSSOLHG VWUHVVHV RQ WKH KRUL]RQWDO SODWH VHH 7DEOH   ZHOGLQJ UHVLGXDO VWUHVV LV

FRQVLGHUHGSHU6HFWLRQIRUWKHSRVWXODWHGVHPLHOOLSWLFDOIODZVDQGLQILQLWHO\\ORQJHGJHIODZLQWKHZHOGHG

SRUWLRQRIWKHSODWH%DVHGRQ6HFWLRQ>







@DFH

9DULRXVSRVWXODWHGIODZVKDSHVLQDSODWHPRGHOZHUHDQDO\\]HGLQFOXGLQJDVWXG\\RIVHPLHOOLSWLFDOIODZV

ZLWKDVSHFWUDWLRV IODZOHQJWKRYHUIODZGHSWK RIDQGDQGDQLQILQLWHOHQJWKIODZLQWKHZHOG7KH

DVSHFWUDWLRVRIDQGIRUWKHVHPLHOOLSWLFDOIODZVDVZHOODVWKHRWKHUIODZVKDSHVDUHSURYLGHGDVD

SDUDPHWULFVWXG\\RIFULWLFDOIODZVL]HV7KHFDOFXODWHGFULWLFDOIODZVL]HVDUHVKRZQLQ7DEOHDDQG

7DEOHEIRUWKHSUHYLRXVO\\PHQWLRQHGSRVWXODWHGIODZVKDSHVDVZHOODVWKH>





















@DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

>









@DFHWKXVWKHKRUL]RQWDO

SODWH DW WKH ERWWRP RI WKH KRUL]RQWDO VXSSRUW DQG DVVRFLDWHG ZHOGV FRQWLQXH WR EH VWUXFWXUDOO\\ VWDEOH

FRQVLGHULQJ\\HDUVRIUDGLDWLRQHPEULWWOHPHQWHIIHFWVRQWKHVXSSRUWV

$VVKRZQLQ7DEOHDDQG7DEOHEWKHFKDQJHLQHPEULWWOHPHQWIURPWR\\HDUVUHVXOWVLQFULWLFDO

IODZVL]HVWKDWYDU\\XSWRDSSUR[LPDWHO\\ LHWKHPDJQLWXGHRIWKHFULWLFDOIODZVL]HVLVVLPLODU IRU6W

/XFLH8QLWVDQG,WLVGHWHUPLQHGWKDWWKHHIIHFWRIWKHFKDQJHLQHPEULWWOHPHQWRQWKHFULWLFDOIODZVL]HV

RYHUWLPHLVPLQRU,QDGGLWLRQWKHGLIIHUHQFHLQFULWLFDOIODZVL]HUHVXOWVEHWZHHQHPEULWWOHPHQWZLWKDQG

ZLWKRXWDQDO\\WLFDOXQFHUWDLQWLHVYDULHVXSWRDSSUR[LPDWHO\\ LHWKHPDJQLWXGHRIWKHFULWLFDOIODZVL]HV

LVVLPLODU 7KXVWKHKRUL]RQWDOSODWHDWWKHERWWRPRIWKHKRUL]RQWDOVXSSRUWDQGWKHDVVRFLDWHGZHOGVDUH

FRQVLGHUHGWREHIODZWROHUDQWIRU\\HDUVDQGWKHUHLVQRFRQFHUQIRUVWUXFWXUDOLQVWDELOLW\\GXHWRUDGLDWLRQ

HPEULWWOHPHQW



 &ROXPQ

>





















@DFH7KXVWKHFROXPQDQGDVVRFLDWHGZHOGVDUH

FRQVLGHUHGWREHIODZWROHUDQWIRU\\HDUVDQGWKHUHLVQRFRQFHUQIRUVWUXFWXUDOLQVWDELOLW\\GXHWRUDGLDWLRQ

HPEULWWOHPHQW>



@DFH





7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

7DEOHD6XPPDU\\RI%RWWRPRI+RUL]RQWDO6XSSRUW+/-'+RUL]RQWDO3ODWH&ULWLFDO)ODZ6L]H

6W/XFLH8QLW

&RPSRQHQW

)UDFWXUH

7RXJKQHVV

/RDGLQJ

&RPELQDWLRQ

&ULWLFDO)ODZ6L]H DW  D 

6HPL

(OOLSWLFDO

$5   E 

6HPL

(OOLSWLFDO

$5   E 

,QILQLWH

(GJH E 

'

+RUL]RQWDO

3ODWH

>

@DFHIRU

()3<

ZLWKRXWDQDO\\WLFDO

XQFHUWDLQWLHV 

1RUPDO







8SVHW







)DXOWHG







>

@DFHIRU

()3<

ZLWKRXWDQDO\\WLFDO

XQFHUWDLQWLHV 

1RUPDO







8SVHW







)DXOWHG







>

@DFHIRU

()3<

ZLWKDQDO\\WLFDO

XQFHUWDLQWLHV 

1RUPDO







8SVHW







)DXOWHG







>

@DFHIRU

()3<

ZLWKDQDO\\WLFDO

XQFHUWDLQWLHV 

1RUPDO







8SVHW







)DXOWHG









6HFWLRQ;,$OORZDEOH)ODZ6L]H







1RWHV

D  7KHFULWLFDOIODZVL]HVDUHGHWHUPLQHGE\\VHWWLQJWKHDSSOLHGVWUHVVLQWHQVLW\\IDFWRUHTXDOWRWKHIUDFWXUHWRXJKQHVV

DQGEDFNFDOFXODWLQJIODZVL]H3ODWHWKLFNQHVV '

E  7KHZHOGVZLWKLQWKHHQWLUH539VWUXFWXUDOVWHHOVXSSRUWVDW6W/XFLH8QLW>







@DFH





7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

7DEOHE6XPPDU\\RI%RWWRPRI+RUL]RQWDO6XSSRUW+/-'+RUL]RQWDO3ODWH&ULWLFDO)ODZ6L]H

6W/XFLH8QLW

&RPSRQHQW

)UDFWXUH

7RXJKQHVV

/RDGLQJ

&RPELQDWLRQ

&ULWLFDO)ODZ6L]H DW  D 

6HPL

(OOLSWLFDO

$5   E 

6HPL

(OOLSWLFDO

$5   E 

,QILQLWH

(GJH E 

'

+RUL]RQWDO

3ODWH

>

@DFHIRU

()3<

ZLWKRXWDQDO\\WLFDO

XQFHUWDLQWLHV 

1RUPDO







8SVHW







)DXOWHG







>

@DFHIRU

()3<

ZLWKRXWDQDO\\WLFDO

XQFHUWDLQWLHV 

1RUPDO







8SVHW







)DXOWHG







>

@DFHIRU

()3<

ZLWKDQDO\\WLFDO

XQFHUWDLQWLHV 

1RUPDO







8SVHW







)DXOWHG







>

@DFHIRU

()3<

ZLWKDQDO\\WLFDO

XQFHUWDLQWLHV 

1RUPDO







8SVHW







)DXOWHG









6HFWLRQ;,$OORZDEOH)ODZ6L]H







1RWHV

D  7KHFULWLFDOIODZVL]HVDUHGHWHUPLQHGE\\VHWWLQJWKHDSSOLHGVWUHVVLQWHQVLW\\IDFWRUHTXDOWRWKHIUDFWXUHWRXJKQHVV

DQGEDFNFDOFXODWLQJIODZVL]H3ODWHWKLFNQHVV '

E  7KHZHOGVZLWKLQWKHHQWLUH539VWUXFWXUDOVWHHOVXSSRUWVDW6W/XFLH8QLW>







@DFH







7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ



%2/76&211(&7,1*&2/801$1'%277202)+25,=217$/6833257

7KHUHDUHHLJKWEROWV $670$ ZKLFKFRQQHFWWKHWRSRIWKHFROXPQWRWKHERWWRPRIWKHKRUL]RQWDO

VXSSRUW7KHVHEROWVDUHVXEMHFWHGWRKLJKHPEULWWOHPHQWUHVXOWLQJLQIUDFWXUHWRXJKQHVVYDOXHVDVVKRZQ

EHORZ VHH7DEOHDQG7DEOH 1RWHWKDWDVDVWXG\\RIIUDFWXUHWRXJKQHVVLURQGSDLVLQFUHDVHGE\\

WRDFFRXQWIRUDQDO\\WLFDOXQFHUWDLQWLHVDVVRFLDWHGZLWKWKHPHWKRGRORJ\\XVHGWRFDOFXODWHHPEULWWOHPHQW

RIWKH6W/XFLH539VXSSRUWVWUXFWXUH,WLVVKRZQWKDWWKHFKDQJHLQQHXWURQHPEULWWOHPHQWRYHUWLPHLV

QRWVLJQLILFDQW LHWKHFKDQJHLQIUDFWXUHWRXJKQHVVLVVPDOOIURP\\HDUVWR\\HDUV VLQFHWKHERWWRP

RIWKHKRUL]RQWDOVXSSRUWWRSRIWKHFROXPQLVFORVHWRWKHYLFLQLW\\RIWKH539DFWLYHFRUH

6W/XFLH8QLW

>







@DFH



6W/XFLH8QLW

>







@DFH

7KH>



































 @DFHWKH EROWV FRQWLQXH WR EH VWUXFWXUDOO\\ VWDEOH

FRQVLGHULQJ\\HDUVRIUDGLDWLRQHPEULWWOHPHQWHIIHFWVRQWKHVXSSRUWV

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

$VVKRZQLQ7DEOHDDQG7DEOHEWKHFKDQJHLQHPEULWWOHPHQWIURPWR\\HDUVUHVXOWVLQFULWLFDO

IODZVL]HVWKDWYDU\\E\\DSSUR[LPDWHO\\WR LHWKHPDJQLWXGHRIWKHFULWLFDOIODZVL]HVLVVLPLODU ,W

LVGHWHUPLQHGWKDWWKHHIIHFWRIWKHFKDQJHLQHPEULWWOHPHQWRYHUWLPHLVPLQRURQWKHFULWLFDOIODZVL]HV,Q

DGGLWLRQWKHGLIIHUHQFHLQFULWLFDOIODZVL]HUHVXOWVEHWZHHQ HPEULWWOHPHQWZLWKDQGZLWKRXWDQDO\\WLFDO

XQFHUWDLQWLHVLVWR LHWKHPDJQLWXGHRIWKHFULWLFDOIODZVL]HVLVVLPLODU 7KXVWKHEROWVWKDW

FRQQHFWWKHFROXPQWRWKHERWWRPRIWKHKRUL]RQWDOVXSSRUWVDUHFRQVLGHUHGWREHIODZWROHUDQWIRU\\HDUV

DQGWKHUHLVQRFRQFHUQIRUVWUXFWXUDOLQVWDELOLW\\GXHWRUDGLDWLRQHPEULWWOHPHQW



 $QFKRU%ROWV







@DFH

7KHDQFKRUEROWVDWWKHEDVHSODWHVDUHHPEHGGHGLQFRQFUHWH$GGLWLRQDOO\\WKHLUUDGLDWLRQHPEULWWOHPHQW

HIIHFWLVLQVLJQLILFDQWIRUWKHEDVHSODWHDQFKRUEROWVWKXV>



@DFH7KHVHDQFKRUEROWVDUHLQFOXGHGLQWKH)($PRGHODQGWKHERXQGDU\\

FRQGLWLRQVDUHVHWXSVXFKWKDWWKHDQFKRUEROWVUHVLVWDQ\\ODWHUDOORDGVWKDWZRXOGFDXVHWKHEDVHSODWHWR

VOLGHDORQJWKHFRQFUHWH'XHWRWKHULJLGLW\\RIWKHXSSHUSDUWRIWKHVXSSRUWWKHDQFKRUEROWVDWWKHEDVH

H[SHULHQFH LQVLJQLILFDQW VKHDU ORDG 6WUHVVHV IRU WKH EDVH SODWH DQFKRU EROWV DUH ERXQGHG E\\ WKH EROWV

FRQQHFWLQJWKHWRSRIWKHFROXPQDQGWKHKRUL]RQWDOVXSSRUW>





@DFH7KXVWKHVHDQFKRUEROWVDUH

FRQVLGHUHGWREHIODZWROHUDQWIRU\\HDUVDQGWKHUHLVQRFRQFHUQIRUVWUXFWXUDOLQVWDELOLW\\GXHWRUDGLDWLRQ

HPEULWWOHPHQW

7KHDQFKRUEROWVDWWKHKRUL]RQWDOVXSSRUWVDUHQRWHQWLUHO\\HPEHGGHGLQFRQFUHWHEXWSDUWLDOO\\H[SRVHG

'XHWRWKHLUUHODWLYHIOH[LELOLW\\FRPSDUHGWRWKHUHVWRIWKHXSSHUVXSSRUWZKLFKLVHPEHGGHGLQFRQFUHWHDW

LWVHQGVDQGWKHFOHDUDQFHKROHVWKHVHDQFKRUEROWVZLOOQRWSURYLGHDQ\\VLJQLILFDQWORDGUHVLVWDQFHLQWKH

GLUHFWLRQVQRUPDOWRWKHEROWD[LV$OORIWKHORDGVDUHWUDQVPLWWHGWKURXJKWKHERG\\RIWKHVXSSRUWWRWKH

FRQFUHWHHPEHGPHQWDWWKHHQGVRIWKHXSSHUVXSSRUWDQGWRWKHFROXPQ$VDUHVXOWWKH6W/XFLH539

KRUL]RQWDOVXSSRUWDQFKRUEROWVDUHQRWOLPLWLQJ7KHVHDQFKRUEROWVDUHFRQVLGHUHGWREHIODZWROHUDQWIRU

\\HDUVDQGWKHUHLVQRFRQFHUQIRUVWUXFWXUDOLQVWDELOLW\\GXHWRUDGLDWLRQHPEULWWOHPHQW





7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

7DEOHD6XPPDU\\RI%ROWV&RQQHFWLQJ&ROXPQDQG%RWWRPRI+RUL]RQWDO6XSSRUW&ULWLFDO)ODZ6L]H

6W/XFLH8QLW

&RPSRQHQW

)UDFWXUH

7RXJKQHVV

/RDGLQJ

&RPELQDWLRQ

&ULWLFDO)ODZ6L]H D 

&LUFXPIHUHQWLDO

&RQWLQXRXV

D5DGLXV

6WUDLJKW)URQW

D'

6HPL&LUFXODU

)URQW

D'

%ROWV

>

@DFHIRU

()3<

ZLWKRXWDQDO\\WLFDO

XQFHUWDLQWLHV 

1RUPDO







8SVHW







)DXOWHG







>

@DFHIRU

()3<

ZLWKRXWDQDO\\WLFDO

XQFHUWDLQWLHV 

1RUPDO







8SVHW







)DXOWHG







>

@DFHIRU

()3<

ZLWKDQDO\\WLFDO

XQFHUWDLQWLHV 

1RUPDO







8SVHW







)DXOWHG







>

@DFHIRU

()3<

ZLWKDQDO\\WLFDO

XQFHUWDLQWLHV 

1RUPDO







8SVHW







)DXOWHG









6HFWLRQ;,$OORZDEOH)ODZ6L]H

6HH1RWH F 

 E 

 E 

1RWHV

D  7KHFULWLFDOIODZVL]HVDUHGHWHUPLQHGE\\VHWWLQJWKHDSSOLHGVWUHVVLQWHQVLW\\IDFWRUHTXDOWRWKHIUDFWXUHWRXJKQHVVDQG

EDFNFDOFXODWLQJIODZVL]H%ROW'LDPHWHU '  '

E  7KH6HFWLRQ;,DOORZDEOHIODZVL]HEDVHGRQ>





@DFH

F  7KH6HFWLRQ;,DOORZDEOHIODZVL]HEDVHGRQ>



@DFH





7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

7DEOHE6XPPDU\\RI%ROWV&RQQHFWLQJ&ROXPQDQG%RWWRPRI+RUL]RQWDO6XSSRUW&ULWLFDO)ODZ6L]H

6W/XFLH8QLW

&RPSRQHQW

)UDFWXUH

7RXJKQHVV

/RDGLQJ

&RPELQDWLRQ

&ULWLFDO)ODZ6L]H D 

&LUFXPIHUHQWLDO

&RQWLQXRXV

D5DGLXV

6WUDLJKW)URQW

D'

6HPL&LUFXODU

)URQW

D'

%ROWV

>

@DFHIRU

()3<

ZLWKRXWDQDO\\WLFDO

XQFHUWDLQWLHV 

1RUPDO







8SVHW







)DXOWHG







>

@DFHIRU

()3<

ZLWKRXWDQDO\\WLFDO

XQFHUWDLQWLHV 

1RUPDO







8SVHW







)DXOWHG







>

@DFHIRU

()3<

ZLWKDQDO\\WLFDO

XQFHUWDLQWLHV 

1RUPDO







8SVHW







)DXOWHG







>

@DFHIRU

()3<

ZLWKDQDO\\WLFDO

XQFHUWDLQWLHV 

1RUPDO







8SVHW







)DXOWHG









6HFWLRQ;,$OORZDEOH)ODZ6L]H

6HH1RWH F 

 E 

 E 

1RWHV

D  7KHFULWLFDOIODZVL]HVDUHGHWHUPLQHGE\\VHWWLQJWKHDSSOLHGVWUHVVLQWHQVLW\\IDFWRUHTXDOWRWKHIUDFWXUHWRXJKQHVVDQG

EDFNFDOFXODWLQJIODZVL]H%ROW'LDPHWHU '  '

E  7KH6HFWLRQ;,DOORZDEOHIODZVL]HEDVHGRQ>





@DFH

F  7KH6HFWLRQ;,DOORZDEOHIODZVL]HEDVHGRQ>



@DFH









7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ



%2/76$762&.(76/,'(5(675$,1,1*3/$7(6

7KHUHDUHHLJKWEROWVWKDWIDVWHQWZRUHVWUDLQLQJSODWHVWRWKHKRUL]RQWDOVXUIDFHRIWKHVRFNHWVOLGHDVVHPEO\\

QHDUWKHWRSRIWKH539VXSSRUWDVVHPEO\\7KHVHEROWVDUHDZD\\IURPWKHYLFLQLW\\RIWKH539DFWLYHFRUH

DQG VXEMHFWHG WR D PRGHUDWH DPRXQW RI HPEULWWOHPHQW KRZHYHU VLQFH WKH PDWHULDO RI WKHVH EROWV LV

XQNQRZQWKHODUJHVWDPRXQWRIHPEULWWOHPHQWRQWKHHQWLUH539VXSSRUWVLVDSSOLHGWRWKHVHEROWVUHVXOWLQJ

LQIUDFWXUHWRXJKQHVVYDOXHVDVVKRZQEHORZ VHH7DEOHDQG7DEOH 7KHIUDFWXUHWRXJKQHVVYDOXHV

XVHGWRFDOFXODWHFULWLFDOIODZVL]HDUHQHDUO\\RQWKHORZHUVKHOIRIWKHORZHUWROHUDQFHERXQG0DVWHU

&XUYH1RWHWKDWDVDVWXG\\RIIUDFWXUHWRXJKQHVVLURQGSDLVLQFUHDVHGE\\WRDFFRXQWIRUDQDO\\WLFDO

XQFHUWDLQWLHVDVVRFLDWHGZLWKWKHPHWKRGRORJ\\XVHGWRFDOFXODWHHPEULWWOHPHQWRIWKH6W/XFLH539VXSSRUW

VWUXFWXUH

6W/XFLH8QLW

>







@DFH



6W/XFLH8QLW

>







@DFH

7KHEROWVDUHRQO\\VXEMHFWHGWRWKH>

















@DFH

WKXVWKHEROWVFRQWLQXHWREHVWUXFWXUDOO\\VWDEOHFRQVLGHULQJ\\HDUVRIUDGLDWLRQHPEULWWOHPHQWHIIHFWVRQ

WKHVXSSRUWV

>













@DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

$VVKRZQLQ7DEOHDDQG7DEOHEWKHFKDQJHLQHPEULWWOHPHQWIURPWR\\HDUVUHVXOWVLQFULWLFDO

IODZVL]HVWKDWYDU\\E\\DSSUR[LPDWHO\\WR LHWKHPDJQLWXGHRIWKHFULWLFDOIODZVL]HVLVVLPLODU ,W

LVGHWHUPLQHGWKDWWKHHIIHFWRIWKHFKDQJHLQHPEULWWOHPHQWRYHUWLPHRQWKHFULWLFDOIODZVL]HVLVPLQRU,Q

DGGLWLRQWKHGLIIHUHQFHLQFULWLFDOIODZVL]HUHVXOWVEHWZHHQ HPEULWWOHPHQWZLWKDQGZLWKRXWDQDO\\WLFDO

XQFHUWDLQWLHVLVDSSUR[LPDWHO\\ LHWKHPDJQLWXGHRIWKHFULWLFDOIODZVL]HVLVVLPLODU 7KXVWKHEROWV

WKDWIDVWHQWZRUHVWUDLQLQJSODWHVWRWKHKRUL]RQWDOVXUIDFHRIWKHVRFNHWVOLGHDVVHPEO\\DUHFRQVLGHUHGWREH

IODZWROHUDQWIRU\\HDUVDQGWKHUHLVQRFRQFHUQIRUVWUXFWXUDOLQVWDELOLW\\GXHWRUDGLDWLRQHPEULWWOHPHQW





7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

7DEOHD6XPPDU\\RI%ROWVDW6RFNHW6OLGH5HVWUDLQLQJ3ODWH&ULWLFDO)ODZ6L]H

6W/XFLH8QLW

&RPSRQHQW

)UDFWXUH

7RXJKQHVV

/RDGLQJ

&RPELQDWLRQ

&ULWLFDO)ODZ6L]H

D'  D 

6LQJOH(GJH)ODZ

.,,0RGHO

%ROW

>

@DFHIRU

()3<

ZLWKRXWDQDO\\WLFDO

XQFHUWDLQWLHV 

$OO



>

@DFHIRU

()3<

ZLWKRXWDQDO\\WLFDO

XQFHUWDLQWLHV 

$OO



@DFHIRU

()3<

ZLWKDQDO\\WLFDO

XQFHUWDLQWLHV 

$OO



>

@DFHIRU

()3<

ZLWKDQDO\\WLFDO

XQFHUWDLQWLHV 

$OO





6HFWLRQ;,$OORZDEOH)ODZ6L]H

 E 

1RWHV

D  7KHFULWLFDOIODZVL]HVDUHGHWHUPLQHGE\\VHWWLQJWKHDSSOLHGVWUHVVLQWHQVLW\\IDFWRU

HTXDOWRWKHIUDFWXUHWRXJKQHVVDQGEDFNFDOFXODWLQJIODZVL]H%ROW'LDPHWHU 

'

E  7KH 6HFWLRQ ;, DOORZDEOH IODZVL]H EDVHG RQ >







@DFH





7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

7DEOHE6XPPDU\\RI%ROWVDW6RFNHW6OLGH5HVWUDLQLQJ3ODWH&ULWLFDO)ODZ6L]H

6W/XFLH8QLW

&RPSRQHQW

)UDFWXUH

7RXJKQHVV

/RDGLQJ

&RPELQDWLRQ

&ULWLFDO)ODZ6L]H

D'  D 

6LQJOH(GJH)ODZ

.,,0RGHO

%ROW

>

@DFHIRU

()3<

ZLWKRXWDQDO\\WLFDO

XQFHUWDLQWLHV 

$OO



>

@DFHIRU

()3<

ZLWKRXWDQDO\\WLFDO

XQFHUWDLQWLHV 

$OO



>

@DFHIRU

()3<

ZLWKDQDO\\WLFDO

XQFHUWDLQWLHV 

$OO



>

@DFHIRU

()3<

ZLWKDQDO\\WLFDO

XQFHUWDLQWLHV 

$OO





6HFWLRQ;,$OORZDEOH)ODZ6L]H

 E 

1RWHV

D  7KHFULWLFDOIODZVL]HVDUHGHWHUPLQHGE\\VHWWLQJWKHDSSOLHGVWUHVVLQWHQVLW\\IDFWRU

HTXDOWRWKHIUDFWXUHWRXJKQHVVDQGEDFNFDOFXODWLQJIODZVL]H%ROW'LDPHWHU 

'

E  7KH 6HFWLRQ ;, DOORZDEOH IODZVL]H EDVHG RQ >







@DFH







7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ



',6&866,212)&21&/86,216



(9$/8$7,212)&855(17&21',7,216

3HU6HFWLRQRI185(*>@SK\\VLFDOH[DPLQDWLRQRIWKHVWUXFWXUDOFRPSRQHQWVLVHVVHQWLDOWR

WKHUHHYDOXDWLRQFRPSOHWHGKHUHLQDQGDQDVVHVVPHQWRIWKHRYHUDOOFRQGLWLRQRIWKH539VXSSRUWVWUXFWXUH

)RU6W/XFLH8QLWWKHLQVSHFWLRQUHFRUGVLQGLFDWHWKDWDOOUHMHFWDEOHGHIHFWVGLVFRYHUHGGXULQJYLVXDO

LQVSHFWLRQPDJQHWLFWHVWLQJDQGXOWUDVRQLFWHVWLQJUHFRUGVZHUHUHSDLUHG5HMHFWDEOHGHIHFWVGLVFRYHUHGSHU

UDGLRJUDSKLF LQVSHFWLRQV DUH FKDUDFWHUL]HG DV VODJ LQFOXVLRQVODFN RI IXVLRQ DQG VXUIDFH LUUHJXODULWLHV

KRZHYHUQRFUDFNVZHUHUHFRUGHGRUPDUNHGDVUHMHFWDEOH$OWKRXJKLQVSHFWLRQUHFRUGVIRU6W/XFLH8QLW

ZHUHQRWLGHQWLILHGWKHVSHFLILFDWLRQVIRUERWK6W/XFLH8QLWDQG8QLWVWDWHWKDWWKHFRPSRQHQWVRIWKH

539VXSSRUWVZHUHWREHLQVSHFWHGGXULQJLQLWLDOIDEULFDWLRQDQGWKDWZHOGVZHUHWREHFDUHIXOO\\H[DPLQHG

WRHQVXUHWKDWWKHUHDUHQRVODJLQFOXVLRQVFUDWHUVFUDFNVRUXQGHUFXWVDQGWKDWGHIHFWVDUHWREHUHPRYHG

E\\FKLSSLQJRUJULQGLQJDQGWKHQUHZHOGHG,QDGGLWLRQWKHVSHFLILFDWLRQVVWDWHWKDWDOOILQLVKHGZRUNVKDOO

EHRIJRRGTXDOLW\\DQGKDYHDQHDWDSSHDUDQFHZLWKRXWZDUSDJH7KH$670$DQG$670$

VWDQGDUGVDQGUHODWHG$670VWDQGDUGVJHQHUDOO\\VWDWHWKDWSODWHVVKDOOEHIUHHRILQMXULRXVGHIHFWVDQGVKDOO

KDYHDZRUNPDQOLNHILQLVK9LVXDOLQVSHFWLRQUHTXLUHPHQWVIRUEROWVSHU$670$VWDWHWKDWDQ\\EROW

ZKLFKFRQWDLQVDEXUVWZRXOGEHFRQVLGHUHGGHIHFWLYHDQGUHPRYHGGHVWUR\\HG7KXVLWLVH[SHFWHGWKDW

FRPSRQHQWVDQDO\\]HGDUHIUHHIURPFUDFNVDIWHULQLWLDOIDEULFDWLRQDQGDIWHUDQH[WHQGHGSHULRGRIWLPHVLQFH

FUDFNJURZWKPHFKDQLVPDUHQRWSUHVHQWDWWKH539VXSSRUWV

7KHIROORZLQJWH[WZDVEDVHGRQ/756'$>@

6W/XFLH8QLW539VXSSRUWVZHUHLQVSHFWHGLQ$SULOEDVHGRQ97SHU(GLWLRQDQG

$GGHQGD$60(6HFWLRQ;,,:)UHTXLUHPHQWV7KH8QLW539VXSSRUWVZHUHDOVRLQVSHFWHGLQ

%DVHGRQWKHYLVXDOH[DPLQDWLRQDOO8QLWDFFHVVLEOHVXSSRUWFRPSRQHQWVZHUHDFFHSWDEOHWKHUHZDVQR

GHIRUPDWLRQRUVWUXFWXUDOGHJUDGDWLRQWKHUHZHUHQRFUDFNVLQZHOGVWKHUHZHUHQRORRVHPLVVLQJGHWDFKHG

LWHPVDQGQRUHFRUGDEOHFRUURVLRQZDVREVHUYHG H[FHSWIRUOLJKWUXVW ,QDGGLWLRQWKH8QLW539VXSSRUW

DWWKH³%'KRWOHJZDVH[DPLQHGLQZLWK97DQGPDJQHWLFSDUWLFOHH[DPLQDWLRQRIWKHQR))OHVXSSRUW

IRRW7KHUHVXOWVZHUHDOVRDFFHSWDEOH

7KH6W/XFLH8QLW539VXSSRUWVZHUHLQVSHFWHGLQ%DVHGRQWKHYLVXDOH[DPLQDWLRQDOO8QLW

DFFHVVLEOHVXSSRUWFRPSRQHQWVZHUHDFFHSWDEOHWKHUHZDVQRGHIRUPDWLRQRUVWUXFWXUDOGHJUDGDWLRQWKHUH

ZHUHQRFUDFNVLQZHOGVWKHUHZHUHQRORRVHPLVVLQJGHWDFKHGLWHPVDQGQRUHFRUGDEOHFRUURVLRQZDV

REVHUYHG7KH8QLWLQVSHFWLRQUHSRUWLGHQWLILHGERULFDFLGUHVLGXHRQWKHVXSSRUWVKRZHYHUWKHVWUXFWXUDO

LQWHJULW\\ RI WKH VXSSRUWV ZDV QRW LPSDFWHG,Q DGGLWLRQ DOO 8QLW  539 VXSSRUWV DUH VFKHGXOHG IRU

H[DPLQDWLRQLQWKH)DOORI

7KHIROORZLQJGHVFULEHVWKHFXUUHQW6W/XFLH8QLWVDQG,6,SURJUDPVSHUWDLQLQJWRWKH539VXSSRUWV

6W/XFLH8QLWVDQGKDYHVLPLODUFRQILJXUDWLRQVDQGDFFHVVLELOLW\\UHJDUGLQJLQVSHFWLRQRIWKH539

VXSSRUWV)RUWKHXSSHUVXSSRUWDUHDZKHUHVWUHVVLVOLPLWLQJ97LVSHUIRUPHGIRUWKH$FROGOHJDQGWKH

$FROGOHJ$GGLWLRQDOO\\PDJQHWLFSDUWLFOHWHVWLQJLVUHTXLUHGIRURQHRIWKHWKUHH539QR))OHVXSSRUWIHHW

97DQG07DUHSHUIRUPHGIRUWKH³%'KRWOHJ539VXSSRUW7KHVHLQVSHFWLRQVDUHLPSOHPHQWHGRQFH

HYHU\\WHQ\\HDUVDVSDUWRIWKH,6,SURJUDP

7RGDWHWKH6W/XFLH8QLWVDQG539VXSSRUWORFDWLRQVKDYHVKRZQDFFHSWDEOHLQVSHFWLRQUHVXOWVRYHU

SDVWLQVSHFWLRQLQWHUYDOVDQGQRJURVVGHIRUPDWLRQKDVEHHQGHWHFWHG

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ



&+$1*(,1(0%5,77/(0(1729(57,0(

>



















































@DFH





&5,7,&$/)/$:6,=(&21&/86,216

%DVHGRQWKHFRQFOXVLRQVLQ185(*LWZDVGHWHUPLQHGWKDWWKH539VXSSRUWVZHUHQRWDFRQFHUQ

IRUWKHHQWLUHW\\RIWKHSODQW¶VOLIH LHRU\\HDUV (YHQLIDOOWKHVXSSRUWVZHUHWRWDOO\\UHPRYHG LH

EURNHQ WKHSLSLQJKDVDFFHSWDEOHPDUJLQWRFDUU\\WKHORDGRIWKHYHVVHO1HYHUWKHOHVVIRUSODQWVDSSO\\LQJ

IRU ORQJ WHUP OLIH H[WHQVLRQ LH EH\\RQG  \\HDUV  WKH 86 15& KDV UHFHQWO\\ EHHQ UHTXHVWLQJ D UH

DVVHVVPHQWRIWKH539VWUXFWXUDOVWHHOVXSSRUWVEDVHGRQDIUDFWXUHPHFKDQLFVHYDOXDWLRQWRDFFRXQWIRU

QHXWURQHPEULWWOHPHQW

7KHJRDORIWKHIUDFWXUHPHFKDQLFVDQDO\\VLVLQWKLVUHSRUWIRU6W/XFLH8QLWVDQGZDVWRGHPRQVWUDWH

WKDWWKHFDOFXODWHGFULWLFDOIODZVL]HVEDVHGRQ\\HDUVRIQHXWURQHPEULWWOHPHQWDUHVXIILFLHQWO\\ODUJH

LHIODZWROHUDQW DVFRPSDUHGWR>







@DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

>

@DFH7KHVHSUHYLRXVO\\

PHQWLRQHGDOORZDEOHIODZVL]HVZHUHGHVFULEHGLQGHWDLOLQ6HFWLRQRIWKLVUHSRUW

7KHUHDUHILYHFRPSRQHQWVZLWKLQWKH6W/XFLH539VXSSRUWV\\VWHPWKDWZHUHDQDO\\]HGYLDWKHIUDFWXUH

PHFKDQLFVDSSURDFKGHVFULEHGLQ185(*7KHILYHFRPSRQHQWVDUHWKH'KRUL]RQWDOSODWHDQG'

YHUWLFDOSODWHDWWKHWRSRIWKHKRUL]RQWDOVXSSRUWWKH'KRUL]RQWDOSODWHDWWKHERWWRPRIWKHKRUL]RQWDO

VXSSRUWWKHEROWVZKLFKFRQQHFWWKHFROXPQDQGERWWRPRIWKHKRUL]RQWDOVXSSRUWDQGWKHEROWVDWWKH

VRFNHWVOLGHUHVWUDLQLQJSODWHV7KHVHILYHFRPSRQHQWVZHUHFRQVLGHUHGIRUWKHFULWLFDOIODZVL]HFDOFXODWLRQV

EHFDXVH WKHVH ORFDWLRQV FRXOG H[SHULHQFH WHQVLOH VWUHVVHV DQG KLJK HPEULWWOHPHQW HIIHFWV 7KH RWKHU

FRPSRQHQWVVXFKDVWKHEDVHSODWHDQFKRUEROWVFROXPQDQGRWKHUZHOGHGSODWHVZLWKLQWKH539VXSSRUW

V\\VWHPZLOOEHERXQGHGE\\RUDUHUHSUHVHQWHGE\\WKHILYHFRPSRQHQWVPHQWLRQHGSUHYLRXVO\\ WKHVHRWKHU

FRPSRQHQWVZHUHGLVFXVVHGLQWKHYDULRXVVXEVHFWLRQVRI6HFWLRQ 7KHFULWLFDOIODZVL]HVIRUHDFKRIWKH

ILYHFRPSRQHQWVDUHEDVHGRQWKHODWHVWSODQWVSHFLILFVWUHVVHVZHOGLQJUHVLGXDOVWUHVVRSHUDWLQJFRQGLWLRQ

WHPSHUDWXUHVQHXWURQHPEULWWOHPHQWIRUDQGFDOHQGDU\\HDUVRIRSHUDWLRQVKLIWLQ1'77EDVHGRQ

)LJXUHRI185(* UHSURGXFHGDV)LJXUHKHUHLQ DQGWKHODWHVWVWUHVVLQWHQVLW\\IDFWRUVXVHG

LQWKHLQGXVWU\\>







@DFH

7KHFULWLFDOIODZVL]HVIRUWKH539VXSSRUWFRPSRQHQWVDUHGHWHUPLQHGIRUDQGFDOHQGDU\\HDUVRI

RSHUDWLRQLQ6HFWLRQWKURXJK6HFWLRQIRUYDULRXVIODZVKDSHVWKHOLPLWLQJFULWLFDOIODZVL]HIRUHDFK

FRPSRQHQW LV SURYLGHG LQ 7DEOH D DQG 7DEOH E$ VXPPDU\\ RI FRQVHUYDWLVPV LQFOXGHG LQ WKH

FDOFXODWLRQRIWKHFULWLFDOIODZVL]HVDUHSURYLGHGLQ6HFWLRQ7KHFULWLFDOIODZVL]HUHSUHVHQWVWKHODUJHVW

IODZVL]HWKDWUHVXOWVIURPHTXDWLQJWKHDSSOLHGVWUHVVLQWHQVLW\\IDFWRUWRWKHFRPSRQHQWVSHFLILFPDWHULDO

IUDFWXUHWRXJKQHVVDQGWKLVIODZVL]HLVFRPSDUHGDJDLQVW>



@DFH

)RUWKHZHOGHGSODWHVWKDWZHUHDQDO\\]HGWKHFULWLFDOIODZVL]HVIRUWKHUDQJHRISRVWXODWHGIODZVL]HV DVSHFW

UDWLRVRIDQGLQILQLWHO\\ORQJHGJHIODZV DUHODUJHUWKDQWKH>













@DFH(YHQZLWKDOOWKHVHFRQVHUYDWLVPV

WKHVHFULWLFDOIODZVL]HVDUHGHHPHGWREHDFFHSWDEOH

)RUWKHVLQJOHHGJHIODZLQWKHEROWVDWWKHVRFNHWVOLGHDVVHPEO\\DQGWKHVWUDLJKWIURQWDQGVHPLFLUFXODU

IURQWFLUFXPIHUHQWLDOSRVWXODWHGIODZVLQWKHEROWVZKLFKFRQQHFWWKHFROXPQWRWKHERWWRPRIWKHKRUL]RQWDO

VXSSRUWWKHFULWLFDOIODZVL]HVDUHDOODERYHWKH>











@DFH(YHQZLWKDOOWKHVHFRQVHUYDWLVPVWKHVHFULWLFDOIODZVL]HVDUHGHHPHG

WREHDFFHSWDEOH>



@DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

>





@DFH

  • HQHUDOO\\ VWDWHG DOO FDOFXODWHG FULWLFDO IODZ VL]HV LQ WKLV UHSRUW ZRXOG >

















@DFH

%DVHGRQWKHGLVFXVVLRQVDERYHDQGWKHUHVXOWVSURYLGHGLQWKLVUHSRUWLWLVFRQFOXGHGWKDWWKH539VXSSRUWV

DW6W/XFLH8QLWVDQGDUHVWUXFWXUDOO\\VWDEOH LHIODZWROHUDQW FRQVLGHULQJFDOHQGDU\\HDUV ()3< 

RI UDGLDWLRQ HPEULWWOHPHQW HIIHFWV DQG D VXIILFLHQW OHYHO RI IODZ WROHUDQFH LV GHPRQVWUDWHG WR MXVWLI\\

FRQWLQXLQJWKHFXUUHQWH[DPLQDWLRQRIWKH539VWUXFWXUDOVWHHOVXSSRUWV,QFRQFOXVLRQWKHORVVRIIUDFWXUH

WRXJKQHVVGXHWRQHXWURQHPEULWWOHPHQWRYHU\\HDUVLVQRWVLJQLILFDQWDQGWKHUHIRUHWKH6W/XFLH8QLWV

DQG539VWUXFWXUDOVWHHOVXSSRUWVGRQRWUHTXLUHPRUHIUHTXHQWLQVSHFWLRQVWKDQWKRVHUHTXLUHGE\\WKH

FXUUHQW$60(6HFWLRQ;,LQVSHFWLRQSURJUDP





7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

7DEOHD6XPPDU\\RI6W/XFLH8QLW5396XSSRUW&ULWLFDO)ODZ6L]HV

)UDFWXUH

7RXJKQHVV

/RDGLQJ

&RQGLWLRQ

&ULWLFDO)ODZ6L]H D 

7RSRI+RUL]RQWDO

6XSSRUW+/-+RUL]RQWDO

3ODWH DW  E 

7RSRI+RUL]RQWDO

6XSSRUW+/-9HUWLFDO

3ODWH DW  E 

%RWWRPRI+RUL]RQWDO

6XSSRUW+/-+RUL]RQWDO

3ODWH DW  E 

%ROWV&RQQHFWLQJ

&ROXPQDQG%RWWRP

RI+RUL]RQWDO

6XSSRUW D5 

%ROWVDW6RFNHW6OLGH

5HVWUDLQLQJ3ODWH

D' 

)UDFWXUH7RXJKQHVV

IRU()3<

ZLWKRXW$QDO\\WLFDO

8QFHUWDLQWLHV 

1RUPDO











8SVHW









)DXOWHG









)UDFWXUH7RXJKQHVV

IRU()3<

ZLWKRXW$QDO\\WLFDO

8QFHUWDLQWLHV 

1RUPDO











8SVHW









)DXOWHG









)UDFWXUH7RXJKQHVV

IRU()3<

ZLWK$QDO\\WLFDO

8QFHUWDLQWLHV 

1RUPDO











8SVHW









)DXOWHG









)UDFWXUH7RXJKQHVV

IRU()3<

 ZLWK$QDO\\WLFDO

8QFHUWDLQWLHV 

1RUPDO











8SVHW









)DXOWHG











6HFWLRQ;,$OORZDEOH)ODZ6L]H







1RWH F 













7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

1RWHVIRU7DEOHD

D  7KHFULWLFDOIODZVL]HVDUHGHWHUPLQHGE\\VHWWLQJWKHDSSOLHGVWUHVVLQWHQVLW\\IDFWRUHTXDOWRWKHIUDFWXUHWRXJKQHVVDQGEDFNFDOFXODWLQJIODZVL]H7KHFULWLFDOIODZVL]HLVDW

IODZGHSWKRYHUWKLFNQHVVUDWLR IRUSODWHVDQGD' IODZGHSWKRYHUGLDPHWHUUDWLR DQGD5 IODZGHSWKRYHUUDGLXVUDWLR IRUEROWV7KHUHDUHQRVLJQLILFDQWWUDQVLHQWVRUWKHUPDO

F\\FOLQJWKDWZRXOGFDXVHDQ\\FUDFNJURZWKRYHUWLPH7KHFDOFXODWHGFULWLFDOIODZVL]HVDUHFRPSDUHGDJDLQVWWKH6HFWLRQ;,DOORZDEOHIODZVL]HV SHUPLVVLEOHSHU6HFWLRQ

RI185(* ,QDOOFDVHVWKHFULWLFDOIODZVL]HVDUHODUJHUWKDQWKH6HFWLRQ;,DOORZDEOHIODZVL]HVWKHUHE\\FRQFOXGLQJWKDWWKH6W/XFLH539VXSSRUWFRPSRQHQWVFRQWLQXH

WREHVWUXFWXUDOO\\VWDEOH LHIODZWROHUDQW FRQVLGHULQJ\\HDUVRIUDGLDWLRQRUHPEULWWOHPHQWHIIHFWVRQWKHVXSSRUWV$OVRWKHVHIODZVZRXOGKDYHEHHQGHWHFWHGGXULQJLQLWLDO

IDEULFDWLRQDQGUHSDLUHG

E  7KLVORFDWLRQFRQVLGHUVZHOGLQJUHVLGXDOVWUHVV

F  7KH6HFWLRQ;,DOORZDEOHIODZVL]HEDVHGRQVXUIDFHH[DPLQDWLRQRIEROWVLVOLPLWHGWR'LQOHQJWKIRUDFLUFXPIHUHQWLDOIODZWKXVDFRQWLQXRXVFLUFXPIHUHQWLDOIODZ

LVLQKHUHQWO\\QRWDOORZHG





7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

7DEOHE6XPPDU\\RI6W/XFLH8QLW5396XSSRUW&ULWLFDO)ODZ6L]HV

)UDFWXUH

7RXJKQHVV

/RDGLQJ

&RQGLWLRQ

&ULWLFDO)ODZ6L]H D 

7RSRI+RUL]RQWDO

6XSSRUW+/-+RUL]RQWDO

3ODWH DW  E 

7RSRI+RUL]RQWDO

6XSSRUW+/-9HUWLFDO

3ODWH DW  E 

%RWWRPRI+RUL]RQWDO

6XSSRUW+/-+RUL]RQWDO

3ODWH DW  E 

%ROWV&RQQHFWLQJ

&ROXPQDQG%RWWRP

RI+RUL]RQWDO

6XSSRUW D5 

%ROWVDW6RFNHW6OLGH

5HVWUDLQLQJ3ODWH

D' 

)UDFWXUH7RXJKQHVV

IRU()3<

ZLWKRXW$QDO\\WLFDO

8QFHUWDLQWLHV 

1RUPDO











8SVHW









)DXOWHG









)UDFWXUH7RXJKQHVV

IRU()3<

ZLWKRXW$QDO\\WLFDO

8QFHUWDLQWLHV 

1RUPDO











8SVHW









)DXOWHG









)UDFWXUH7RXJKQHVV

IRU()3<

 ZLWK$QDO\\WLFDO

8QFHUWDLQWLHV 

1RUPDO











8SVHW









)DXOWHG









)UDFWXUH7RXJKQHVV

IRU()3<

 ZLWK$QDO\\WLFDO

8QFHUWDLQWLHV 

1RUPDO











8SVHW









)DXOWHG











6HFWLRQ;,$OORZDEOH)ODZ6L]H







1RWH F 













7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

1RWHVIRU7DEOHE

D  7KHFULWLFDOIODZVL]HVDUHGHWHUPLQHGE\\VHWWLQJWKHDSSOLHGVWUHVVLQWHQVLW\\IDFWRUHTXDOWRWKHIUDFWXUHWRXJKQHVVDQGEDFNFDOFXODWLQJIODZVL]H7KHFULWLFDOIODZVL]HLVDW

IODZGHSWKRYHUWKLFNQHVVUDWLR IRUSODWHVDQGD' IODZGHSWKRYHUGLDPHWHUUDWLR DQGD5 IODZGHSWKRYHUUDGLXVUDWLR IRUEROWV7KHUHDUHQRVLJQLILFDQWWUDQVLHQWVRUWKHUPDO

F\\FOLQJWKDWZRXOGFDXVHDQ\\FUDFNJURZWKRYHUWLPH7KHFDOFXODWHGFULWLFDOIODZVL]HVDUHFRPSDUHGDJDLQVWWKH6HFWLRQ;,DOORZDEOHIODZVL]HV SHUPLVVLEOHSHU6HFWLRQ

RI185(* ,QDOOFDVHVWKHFULWLFDOIODZVL]HVDUHODUJHUWKDQWKH6HFWLRQ;,DOORZDEOHIODZVL]HVWKHUHE\\FRQFOXGLQJWKDWWKH6W/XFLH539VXSSRUWFRPSRQHQWVFRQWLQXH

WREHVWUXFWXUDOO\\VWDEOH LHIODZWROHUDQW FRQVLGHULQJ\\HDUVRIUDGLDWLRQRUHPEULWWOHPHQWHIIHFWVRQWKHVXSSRUWV$OVRWKHVHIODZVZRXOGKDYHEHHQGHWHFWHGGXULQJLQLWLDO

IDEULFDWLRQDQGUHSDLUHG

E  7KLVORFDWLRQFRQVLGHUVZHOGLQJUHVLGXDOVWUHVV

F  7KH6HFWLRQ;,DOORZDEOHIODZVL]HEDVHGRQVXUIDFHH[DPLQDWLRQRIEROWVLVOLPLWHGWR'LQOHQJWKIRUDFLUFXPIHUHQWLDOIODZWKXVDFRQWLQXRXVFLUFXPIHUHQWLDOIODZ

LVLQKHUHQWO\\QRWDOORZHG





7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ



5()(5(1&(6

 861XFOHDU5HJXODWRU\\&RPPLVVLRQ185(*9ROXPH³*HQHULF$JLQJ/HVVRQV/HDUQHGIRU

6XEVHTXHQW/LFHQVH5HQHZDO *$//6/5 5HSRUW)LQDO5HSRUW'-XO\\

 861XFOHDU5HJXODWRU\\&RPPLVVLRQ/HVVRQV/HDUQHGIRU6/5

D 861XFOHDU5HJXODWRU\\&RPPLVVLRQ3XEOLF0HHWLQJ³6/5&KDQJH'5$)71HZ)(6536/5

6HFWLRQ  DQG$05 IRU,UUDGLDWLRQ RI 59 6WHHO 6XSSRUWV' 0HHWLQJ +HOG 

>$'$06$FFHVVLRQ1XPEHU0/+@

E 86 15& 5HSRUW ³6XPPDU\\ RI$SULO   7HOHFRQIHUHQFH RQ 7RSLFV 5HODWHG WR /HVVRQV

/HDUQHGIURPWKH5HYLHZRIWKH)LUVW6XEVHTXHQW/LFHQVH5HQHZDO$SSOLFDWLRQ'$SULO

>$'$06$FFHVVLRQ1XPEHU0/)@

 861XFOHDU5HJXODWRU\\&RPPLVVLRQ185(*³5HVROXWLRQRI*HQHULF6DIHW\\,VVXHV )RUPHUO\\

HQWLWOHG³$3ULRULWL]DWLRQRI*HQHULF6DIHW\\,VVXHV '0DLQ5HSRUWZLWK6XSSOHPHQWV*HQHULF

,VVXH1R³5DGLDWLRQ(IIHFWVRQ5HDFWRU9HVVHO6XSSRUWV 5HY '

 861XFOHDU5HJXODWRU\\&RPPLVVLRQ185(*³5DGLDWLRQ(IIHFWVRQ5HDFWRU3UHVVXUH9HVVHO

6XSSRUWV'0D\\

 185(*&5³,PSDFWRI5DGLDWLRQ(PEULWWOHPHQWRQ,QWHJULW\\RI3UHVVXUH9HVVHO6XSSRUWVIRU

7ZR3:53ODQWV'-DQXDU\\

 :HVWLQJKRXVH /HWWHU ³6W /XFLH 8QLWV   6XEVHTXHQW /LFHQVH 5HQHZDO 5HDFWRU 3UHVVXUH9HVVHO

6XSSRUWV$VVHVVPHQW'6HSWHPEHU

D /756'$35HYLVLRQ

E /756'$135HYLVLRQ

 :HVWLQJKRXVH 5HSRUW :&$313 5HYLVLRQ  ³)UDFWXUH 0HFKDQLFV$VVHVVPHQW RI 5HDFWRU

3UHVVXUH9HVVHO6WUXFWXUDO6WHHO6XSSRUWVIRU3RLQW%HDFK8QLWVDQG'6HSWHPEHU

 $PHULFDQ6RFLHW\\RI0HFKDQLFDO(QJLQHHUV $60( &RGH6HFWLRQ;,³5XOHVIRU,QVHUYLFH,QVSHFWLRQ

RI1XFOHDU3RZHU3ODQW&RPSRQHQWV'(GLWLRQZLWK$GGHQGD

 0HPRUDQGXPVE\\WKH861XFOHDU5HJXODWRU\\&RPPLVVLRQ5HJDUGLQJ5HVROXWLRQRI*6,DVFLWHG

LQ185(*>$'$06$FFHVVLRQ1XPEHU0/@

D 0HPRUDQGXPIRU-DPHV07D\\ORUIURP'DYLG/0RUULVRQ³5HVROXWLRQRI*HQHULF6DIHW\\,VVXH



5DGLDWLRQ(IIHFWVRQ5HDFWRU9HVVHO6XSSRUWV

'0D\\ SDJHV 

E 0HPRUDQGXP IRU -RKQ 7 /DUNLQV IURP -RVHSK$ 0XUSK\\ ³3URSRVHG 5HVROXWLRQ RI *6,

5DGLDWLRQ(IIHFWVRQ5HDFWRU3UHVVXUH9HVVHO6XSSRUWV

'-XQH SDJHV  (QFORVXUHV

SDJHV 

(%$6&26WUXFWXUDO6WHHO6SHFLILFDWLRQV

D )/25HYLVLRQ³6WUXFWXUDO6WHHO6DLQW/XFLH8QLW1R''HFHPEHU

E )/2 5HYLVLRQ $GGHQGXP ³$GGHQGXP WR (%$6&2 )/2 )RU &ODVV,

6WUXFWXUHVDQG&RPSRQHQWV'-DQXDU\\

F )/25HYLVLRQ³6WUXFWXUDO6WHHO6DLQW/XFLH8QLW1R')HEUXDU\\

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

6W/XFLH8QLWVDQG'UDZLQJV

D (%$6&2 'UDZLQJ * 6KHHWV  DQG  5HYLVLRQ  ³6W /XFLH 3ODQW 8QLW  5HDFWRU

%XLOGLQJ(TXLSPHQW6XSSRUWV'

E (%$6&2'UDZLQJ*6KHHWRI5HYLVLRQ³6W/XFLH3ODQW8QLW5HDFWRU%XLOGLQJ

(TXLSPHQW6XSSRUWV'

F >



@DFH

G >



@DFH

H >



@DFH

I >



@DFH

J >



@DFH

K >



@DFH

$670 $D ³6WDQGDUG 6SHFLILFDWLRQ IRU +LJK6WUHQJWK /RZ$OOR\\ 6WUXFWXUDO 0DQJDQHVH

9DQDGLXP6WHHO'

$670$ ³6WDQGDUG 6SHFLILFDWLRQ IRU 3UHVVXUH 9HVVHO 3ODWHV$OOR\\ 6WHHO 4XHQFKHG DQG

7HPSHUHG0DQJDQHVH0RO\\EGHQXPDQG0DQJDQHVH0RO\\EGHQXP1LFNHO'

$670$³6WDQGDUG6SHFLILFDWLRQIRU+LJK6WUHQJWK%ROWVIRU6WUXFWXUDO6WHHO-RLQWV'

>



@DFH

>



@DFH

$60(&RGH6HFWLRQ,,,'LYLVLRQ+/-$SSHQGLFHV³5XOHVIRU&RQVWUXFWLRQRI1XFOHDU3RZHU3ODQW

&RPSRQHQWV'(GLWLRQ

$60(6HFWLRQ;,&RGH&DVH1³'LUHFW8VHRI0DVWHU)UDFWXUH7RXJKQHVV&XUYHIRU3UHVVXUH

5HWDLQLQJ0DWHULDOVRI&ODVV9HVVHOV6HFWLRQ;,'LYLVLRQ'$SSURYDO'DWH6HSWHPEHU

³7HFKQLFDO%DVLVIRU$60(&RGH&DVH15HYLVLRQ 053 'LUHFW8VHRI0DVWHU&XUYH

)UDFWXUH7RXJKQHVV&XUYHIRU3UHVVXUH5HWDLQLQJ0DWHULDOVRI&ODVV9HVVHOV6HFWLRQ;,'2FWREHU



>



@DFH

:HVWLQJKRXVH 5HSRUW :&$3 5HYLVLRQ $ ³/LFHQVLQJ 5HQHZDO (YDOXDWLRQ $JLQJ

0DQDJHPHQWIRU5HDFWRU&RRODQW6\\VWHP6XSSRUWV''HFHPEHU

>



@DFH

7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ



HVWLQJKRXVH1RQ3URSULHWDU\\&ODVV



&$313

'HFHPEHU



5HYLVLRQ

251/70³/RZ7HPSHUDWXUH,UUDGLDWLRQ(PEULWWOHPHQWRI5HDFWRU3UHVVXUH9HVVHO6WHHOV'

2DN5LGJH1DWLRQDO/DERUDWRU\\0D\\

861XFOHDU5HJXODWRU\\&RPPLVVLRQ5HJXODWRU\\*XLGH³&DOFXODWLRQDODQG'RVLPHWU\\0HWKRGV

IRU'HWHUPLQLQJ3UHVVXUH9HVVHO1HXWURQ)OXHQFH'2IILFHRI1XFOHDU5HJXODWRU\\5HVHDUFK0DUFK



:HVWLQJKRXVH5HSRUW:&$313$5HYLVLRQ³)OXHQFH'HWHUPLQDWLRQZLWK5$37250*

DQG)(55(7'-XO\\

6W /XFLH 8QLW  8SGDWHG )LQDO 6DIHW\\$VVHVVPHQW 5HSRUW 8)6$5 $SSHQGL[ + ³$QDO\\VLV RI

5HDFWRU6XSSRUW6WUXFWXUH6W/XFLH3ODQW'$PHQGPHQW0D\\

)3/6SHFLILFDWLRQ5HYLVLRQ³'HVLJQ6SHFLILFDWLRQIRU0DLQ&RRODQW3LSHDQG)LWWLQJV

IRU6W/XFLH8QLW'-XQHDVVXSSOLHGYLD36/:(&5HYLVLRQ³'HVLJQ,QSXW

7UDQVPLWWDOIRU:6D$OOR\\/RFDWLRQVWR6XSSRUWWKH6W/XFLH8QLWDQG8QLW6XEVHTXHQW

/LFHQVH5HQHZDO')HEUXDU\\

>

@DFH

$60(&RGH6HFWLRQ,,3DUW'³3URSHUWLHV0DWHULDOV'(GLWLRQZLWK$GGHQGD

$60(%RLOHU 3UHVVXUH9HVVHO&RGH6HFWLRQ;,³5XOHVIRU,QVHUYLFH,QVSHFWLRQRI1XFOHDU3RZHU

3ODQW&RPSRQHQWV'(GLWLRQ

$PHULFDQ3HWUROHXP,QVWLWXWH$3,$60())6³)LWQHVV)RU6HUYLFH'-XQH

+LURVKL7DGD3DXO&3DULV*HRUJH5,UZLQ³7KH6WUHVV$QDO\\VLVRI&UDFNV+DQGERRN'7KLUG(GLWLRQ

$60(3UHVV1HZ<RUN

$PHULFDQ:HOGLQJ6RFLHW\\ $:6 '(LJKW(GLWLRQ³6SHFLILFDWLRQVIRU:HOGHG+LJKZD\\DQG

5DLOZD\\%ULGJHV'

$PHULFDQ:HOGLQJ6RFLHW\\ $:6 '³6WUXFWXUDO:HOGLQJ&RGH'



7KLVUHFRUGZDVILQDODSSURYHGRQ$0 7KLVVWDWHPHQWZDVDGGHGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQ

&$3135HYLVLRQ

1RQ3URSULHWDU\\&ODVV

7KLVSDJHZDVDGGHGWRWKHTXDOLW\\UHFRUGE\\WKH35,0(V\\VWHPXSRQLWVYDOLGDWLRQDQGVKDOOQRWEHFRQVLGHUHGLQWKHSDJHQXPEHULQJRIWKLVGRFXPHQW

$SSURYDO,QIRUPDWLRQ

$XWKRU$SSURYDO6FRWW$OH[DQGULD0'HF

$XWKRU$SSURYDO+DOO*RUGRQ='HF

9HULILHU$SSURYDO'HPHWUL*HRUJH-'HF

5HYLHZHU$SSURYDO%LVFHJOLD1LFKRODV0'HF

5HYLHZHU$SSURYDO+DZN$QGUHZ('HF

5HYLHZHU$SSURYDO+DOO-%ULDQ'HF

0DQDJHU$SSURYDO3DWWHUVRQ/\\QQ'HF

)LOHVDSSURYHGRQ'HF

Retrieved from "https://kanterella.com/w/index.php?title=L-2022-046,_Subsequent_License_Renewal_Application_Revision_-_Documents_WCAP-18623-P/NP_Revision_1_Submittal&oldid=5454058"