Pasco County Land Development Code
Transcription
Pasco County Land Development Code
6HFWLRQ 6HFWLRQ 6HFWLRQ 6HFWLRQ 6HFWLRQ 6HFWLRQ ZSGDWDOGFUZOGFBWRF &KDSWHU'HYHORSPHQW6WDQGDUGV 7DEOHRI&RQWHQWV 1DPH 7UDQVSRUWDWLRQ 7UDQVSRUWDWLRQ±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³6HFWLRQ%´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¶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↑ 1 6WHS 3URFHHGZLWK:DUUDQWVDQG7XUQ/DQH'HVLJQ&ULWHULD 3HUIRUP D 6XEVWDQGDUG 5RDGZD\ $QDO\VLV LQ DFFRUGDQFH ZLWK WKLV &RGH 6HFWLRQ ZSGDWDOGFUZOGFDFFHVVPDQDJHPHQW 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ $FFHVV5RDG 7851/$1(:$55$176$1''(6,*1&5,7(5,$ '(),1,7,2162)7(506 9HKLFOHV3HU+RXU93+ 9$²$SSURDFKLQJ9ROXPH93+ 92²2SSRVLQJ9ROXPH93+ 9/²/HIW7XUQLQJ9ROXPH93+ 95²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± 7:2/$1()$&,/,7,(6 95 5,*+778516,13($.+28593+ )8//:,'7+5,*+77851/$1(5(48,5(' )'27,1'(;12 5$',8625)/$5(21/<5(48,5(' )'27,1'(;12 9$ 727$/3($.+285$3352$&+92/80(93+ 127()RUSRVWHGVSHHGVDWRUXQGHUIRUW\ILYHPSKSHDNKRXUULJKWWXUQV JUHDWHUWKDQIRUW\93+DQGWRWDOSHDNKRXUDSSURDFKOHVVWKDQ93+ DGMXVWULJKWWXUQYROXPHV$GMXVWSHDNKRXUULJKWWXUQV SHDNKRXUULJKWWXUQV² WZHQW\ *5$3+%5,*+77851/$1(:$55$176 )285 256,;/$1()$&,/,7,(6 )8//:,'7+5,*+77851/$1( 5(48,5(')'27,1'(;12 95 5,*+778516,13($.+28593+ 5$',8625)/$5(21/<5(48,5(' )'27,1'(;12 9 $ 727$/3($.+285$3352$&+92/80(93+ 127()RUDSSOLFDWLRQRQKLJKVSHHGKLJKZD\V *UDSKV$%6RXUFH1DWLRQDO&RRSHUDWLYH+LJKZD\5HVHDUFK3URJUDP5HSRUW1R ZSGDWDOGFUZOGFDFFHVVPDQDJHPHQW 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ *5$3+$/()77851/$1(:$55$176± 7:2/$1()$&,/,7,(6 03+ /()77851 /$1( 5( 48, 5(' )'27, 1'(; 126 9R 23326,1*92/80(93+ 2) /( )7 78516 ,19 $ /() 77 851/$1( 1275( 48, 5( ' 9 $ 727$/3($.+285$3352 $&+92 /80(93+ 127( /HIWWXUQODQHQRWUHTXLUHGZKHQLQWHUVHFWLRQRI9$ DQG 92 LVEHORZWKHFXUYHFRUUHVSRQGLQJWRWKH RI OHIWWXUQVLQ9$ *5$3+%/()77851/$1(:$55$176± 7:2/$1()$&,/,7,(603+ /()77851/$1( 5( 48, 5( ' )'27,1'(; 126 9R 23326,1*92/80(93+ 2)/( )7 78516 ,19$ /()77851/$1( 127 5( 48, 5( ' 9 $ 727$/ 3($. +285$3352 $&+92/80(93+ 127( /HIWWXUQODQH QRW UHTXLUHGZKHQLQWHUVHFWLRQRI 9$DQG 92 LVEHORZWKH FXUYHFRUUHVSRQGLQJWRWKHRIOHIWWXUQVLQ 9$ *UDSKV$%6RXUFH1DWLRQDO&RRSHUDWLYH+LJKZD\5HVHDUFK3URJUDP5HSRUW1R ZSGDWDOGFUZOGFDFFHVVPDQDJHPHQW 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ *5$3+&/()77851/$1(:$55$176± 7:2/$1()$&,/,7,(603+ 9R 23326,1*92/80(93+ /()7 7851/$ 1( 5(48,5(' ) '27 ,1'(; 126 9$ 2) /()7 78516 ,1 /()77851 /$1( 1275(48,5(' 9 $ 727$/3($.+285$3352$&+92/80(93+ 127( /HIWWXUQODQHQRWUHTXLUHGZKHQLQWHUVHFWLRQRI9 $ DQG92 LVEHORZWKHFXUYHFRUUHVSRQGLQJWRWKHRIOHIWWXUQV LQ9$ 9 R 23326,1*92/80(93+ *5$3+'/()77851/$1(:$55$176±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²YDFDQW 3URSRVHGXVH²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³HLJKW\ SHUFHQWUXOH´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²5XUDO0XOWLODQH 'HVLJQ<HDU $$'7 $// 'HVLJQ6SHHGPSK 0LQLPXP /DQH:LGWK )HHW $// 7$%/(% 0LQLPXP 6KRXOGHU:LGWK )HHW /DQHDQG6KRXOGHU:LGWKV7ZR/DQH5XUDODQG8UEDQ²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Ǫ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³2EVHUYHG )ORRGLQJ´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• 0HWKRGRORJ\6WDWHPHQW • 'HILQLWLRQV • *HQHUDO$QDO\VLV5HTXLUHPHQWVDQG6RIWZDUH • ,PSDFWHG5RDGZD\V,QWHUVHFWLRQV • 7ULS*HQHUDWLRQ • 'LVWULEXWLRQ$VVLJQPHQW • ,QWHUQDO&DSWXUH • 3DVVHUE\&DSWXUH • 7UDIILF&RXQWV • %DFNJURXQG7UDIILF*URZWK 7KHQHWZRUNRQZKLFKGHPLQLPLVGHWHUPLQDWLRQVDUHEDVHGPD\LQFOXGHWKH &RPPLWWHG1HWZRUNDVGHILQHGKHUHLQ ' 0HWKRGRORJ\6WDWHPHQW 3ULRUWRFRQGXFWLQJDQ\VWXG\DPHWKRGRORJ\VWDWHPHQWVKDOOEHSUHSDUHGE\ WKH DSSOLFDQW DQG VXEPLWWHG IRU UHYLHZ DQG DSSURYDO E\ WKH &RXQW\ $GPLQLVWUDWRURUGHVLJQHH7KHSXUSRVHRIWKHPHWKRGRORJ\VWDWHPHQWLVWR HVWDEOLVK DJUHHGXSRQ PHWKRGRORJLHV DQG DVVXPSWLRQV SULRU WR WKH VWDUW RI WKHVWXG\DQGLIDSSURSULDWHWRSURYLGHVXEVWDQWLDWLRQWKDWWKHGHYHORSPHQW¶V LPSDFWV DUH GHPLQLPLV DQG IXUWKHU WUDIILF VWXG\ DQG UHYLHZ LV QRW UHTXLUHG 7KH IROORZLQJ HOHPHQWV RI WKH PHWKRGRORJ\ DV OLVWHG EHORZ VKRXOG EH VSHFLILFDOO\DGGUHVVHGDWDPLQLPXP • 'HVFULSWLRQ RI ODQG XVHV VLWH ORFDWLRQ EXLOGRXW VFKHGXOH DQG SKDVLQJLQFOXGLQJDQ\LQWHULPXVHVJHQHUDWLQJWUDIILF • 3UHOLPLQDU\6LWH3ODQ • 7ULS*HQHUDWLRQ • ,QWHUQDO&DSWXUH • %DFNJURXQG7UDIILF*URZWK3URFHGXUH • 'LVWULEXWLRQDQG$VVLJQPHQW ZSGDWDOGFUZOGFWUDQVSRUWDWLRQLPSDFWVWXG\ 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ •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•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¶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¶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¶V 032 8UEDQ $UHD 7UDQVSRUWDWLRQ 6\VWHP 3ODQQLQJ 0RGHO 7KHJURZWKIXWXUH WUDIILFRQ URDGV WKDW GR QRW FXUUHQWO\ H[LVW VKDOO EH EDVHGRQWKH7%530WKHODWHVWDGRSWHGPRGHO ,IWKH7%530LVXVHGWKHEDFNJURXQGWUDIILFJURZWKIRUH[LVWLQJURDGV VKDOO EH GHWHUPLQHG DV IROORZV DLGHQWLI\ WKH YDOLGDWHG \HDUPRGHO YROXPHDQGEXLOGRXW\HDUIXWXUHPRGHOYROXPHELQWHUSRODWHWKHVH YDOXHVWRLGHQWLI\DPRGHOEDVHGYROXPHIRUH[LVWLQJFRQGLWLRQV\HDU WREHFRQVLVWHQWZLWKWKHGDWHRIFXUUHQWFRXQWGDWDFLGHQWLI\WKH JURZWKUDWHEHWZHHQWKHLQWHUSRODWHGH[LVWLQJFRQGLWLRQVPRGHOEDVHG YROXPH DQG WKH EXLOGRXW \HDU IXWXUH PRGHO YROXPH DQG GDSSO\ WKLVJURZWKUDWHWRWKHH[LVWLQJFRQGLWLRQVWUDIILFFRXQWV7KHEXLOGRXW \HDU IXWXUH PRGHO YROXPH LV GHWHUPLQHG E\ DSSO\LQJ WKH SURMHFW V EXLOGRXW\HDUVRFLRHFRQRPLFGDWDWRWKHFRPPLWWHGDQGRULPSURYHG QHWZRUN7KHEXLOGRXW\HDUVRFLRHFRQRPLFGDWDPD\EHREWDLQHGE\ LQWHUSRODWLQJEHWZHHQWKH032 VRU&RXQW\ VDGRSWHGYDOLGDWHG\HDU ZSGDWDOGFUZOGFWUDQVSRUWDWLRQLPSDFWVWXG\ 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ DQG WKH DGRSWHG LQWHULP RU IXWXUH \HDU VRFLRHFRQRPLF GDWD WKHQ DGMXVWLQJWRUHIOHFWWKHSHQGLQJDQGDSSURYHGGHYHORSPHQWV 7KH VRFLRHFRQRPLF GDWD RI WKH PRGHO VKDOO UHDVRQDEO\ UHSUHVHQW LI DSSURSULDWHWKHDSSURYHGDQGSHQGLQJGHYHORSPHQWVLQWKHYLFLQLW\RI WKH SURMHFW DV DSSURYHG E\ WKH &RXQW\ $GPLQLVWUDWRU RU GHVLJQHH GXULQJWKHPHWKRGRORJ\SURFHVV 0LQLPXP DQQXDO JURZWK UDWHV LQ DOO FDVHV VKDOO EH WZR SHUFHQW XQOHVVRWKHUZLVHDSSURYHGE\WKH&RXQW\$GPLQLVWUDWRURUGHVLJQHH 7KH DVVXPHG JURZWK UDWH IRU HDFK LPSDFWHG URDGZD\ VHJPHQW VKDOO EHSUHVHQWHGLQDWDEOH 7KHEDFNJURXQGWUDIILFJURZWKHVWLPDWHVRIWKHPRGHOZLOOEHUHYLHZHG E\WKH&RXQW\$GPLQLVWUDWRURUGHVLJQHHWRHQVXUHJURZWKUHDVRQDEO\ UHIOHFWVUHFHQWDQGH[SHFWHGJURZWKWUHQGV 7KH FRQQHFWLRQV RI VXUURXQGLQJ WUDIILF DQDO\VLV ]RQHV LQ WKH PRGHO VKRXOG EH UHYLHZHG WR UHIOHFW RWKHU DSSURYHG DQG SHQGLQJ GHYHORSPHQWVDQGWRHQVXUHDSSURSULDWHQHWZRUNORDGLQJ )RU SXUSRVHV RI GHPLQLPLV GHWHUPLQDWLRQV XQGHU 6HFWLRQ'H WKKLJKHVWKRXUWUDIILFYROXPHGDWDVKDOOEHIDFWRUHGWRDFFRXQWIRUYHVWHG DQG GHPLQLPLV WULSV WR WKH FDOHQGDU \HDU RI WKH SXEOLVKHG /LVW RI 1RQ 'H0LQLPLV 5RDGV WKDW LV FXUUHQW DW WKH WLPH WKH SHWLWLRQ IRU GHPLQLPLV GHWHUPLQDWLRQLVVXEPLWWHG 1 /HYHORI6HUYLFH6WDQGDUGV 7KH /26 VWDQGDUGV IRU DOO PDMRU URDG VHJPHQWV IDFLOLWLHV VKDOO EH FRQVLVWHQW ZLWK WKH OHWWHU VWDQGDUGV SHU WKH &RXQW\ V ODWHVW DGRSWHG &RPSUHKHQVLYH3ODQ 7KH RYHUDOO LQWHUVHFWLRQ /26 VWDQGDUG LV WKH VDPH DV WKH VHJPHQW IDFLOLW\ VWDQGDUG :KHUH GLIIHUHQW /26 VWDQGDUGV DSSO\ WR GLIIHUHQW OHJV RI DQ LQWHUVHFWLRQ WKH RYHUDOO LQWHUVHFWLRQ /26 VWDQGDUG ZLOO EH' 7KH GHOD\ IRU LQGLYLGXDO WXUQLQJ PRYHPHQWV DQG WKURXJK PRYHPHQWV PD\ H[FHHG WKH VHJPHQW VWDQGDUG E\ RQH OHWWHU JUDGH SURYLGHG WKDWWKHYFUDWLRIRUWKHVXEMHFWPRYHPHQWUHPDLQVOHVVWKDQRUHTXDO WR RQH $YHUDJH GHOD\V XS WR VHFRQGV DUH DFFHSWDEOH IRU LQGLYLGXDOWXUQLQJPRYHPHQWVZKHUHWKHYFUDWLRLVOHVVWKDQ )RU VLWH DFFHVV GULYHZD\V DQG ORFDO VWUHHW FRQQHFWLRQV VHUYLQJ VLWH DFFHVV WUDIILF GHOD\V XS WR VHFRQGV ZLOO EH FRQVLGHUHG DFFHSWDEOH ZSGDWDOGFUZOGFWUDQVSRUWDWLRQLPSDFWVWXG\ 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ 2 $WPLQLPXPWKHIROORZLQJDGGLWLRQDOLQIRUPDWLRQVKDOOEHSURYLGHG ,QYHQWRU\RI([LVWLQJDQG)XWXUH&RQGLWLRQV 3 %XLOGRXWGDWHRIWKHSURMHFWPXVWEHDUHDVRQDEOHGDWHEDVHGRQWKH VL]H RI WKH SURMHFW EXW QRW OHVV WKDQ WZR \HDUV IURP WKH GDWH WKH 7,6 LV VXEPLWWHG QRU PRUH WKDQ WHQ \HDUV IRU QRQ'5, GHYHORSPHQWVRUPRUHWKDQILIWHHQ\HDUVIRU'5,V 7KH JHRPHWU\ VSHHG OLPLW DQG WKH /26 VWDQGDUG RI DOO WKH H[LVWLQJ URDGZD\V LQWHUVHFWLRQV DQG FRPPLWWHG LQWHUVHFWLRQV DQG URDGZD\ LPSURYHPHQWSURMHFWVZLWKLQDQGLQFORVHSUR[LPLW\RIWKHVWXG\DUHD ([LVWLQJ YHKLFOH FRXQWV DQG GDWD VXSSRUWLQJ KHDY\ YHKLFOH IDFWRU IRU FDSDFLW\DQGVXEVWDQGDUGURDGDQDO\VLV *UDSKLF SUHVHQWDWLRQ RI WKH SURMHFW V SURSRVHG DFFHVV ORFDWLRQV W\SHV DQG LQWHUQDO URDGV ZLWK FRQQHFWLRQV WR WKH &RXQW\ V YLVLRQEXLOGRXW RU ORQJUDQJH SODQ RI URDGZD\V 7KH JUDSKLF VKDOO DOVRFRYHUWKHDUHDEH\RQGWKHERXQGDU\RIWKHSURMHFWWRLQFOXGHDOO WKHH[WHUQDOPDMRUURDGZD\VDQGH[LVWLQJRUIXWXUHDFFHVVSRLQWVDQG W\SHVRIGHYHORSPHQWVVXUURXQGLQJWKHSURMHFW 3DYHPHQW PDUNLQJ SODQVFRQFHSW SODQV RI URDGZD\V WKDW SURYLGH GLUHFW DFFHVV WR WKH SURMHFW DQG KDYH FRPSOHWHG RU DUH XQGHUJRLQJ GHVLJQRUURXWHVWXG\SKDVHLIDYDLODEOH *UDSKLF SUHVHQWDWLRQ RI SURMHFW WUDIILF SHUFHQW GLVWULEXWLRQ DQG WRWDO EDFNJURXQGDQGSURMHFWWUDIILFDVVLJQPHQWV ,QYHQWRU\RIH[LVWLQJRUFRPPLWWHGWUDIILFFRQWUROGHYLFHV 0LWLJDWLRQRI,PSDFWV *HQHUDO*XLGDQFH D 7KLV VXEVHFWLRQ SURYLGHV GLVFXVVLRQ RQ KRZ WKH DGHTXDF\ RI PLWLJDWLRQ ZLOO EH WHFKQLFDOO\ UHYLHZHG DQG GHWHUPLQHG E\ WKH &RXQW\ $GPLQLVWUDWRU RU GHVLJQHH 7KH PLWLJDWLRQ RSWLRQV GLVFXVVHG EHORZ DUH VHW IRUWK LQ 6HFWLRQ &RQFXUUHQF\ ,Q WKH HYHQW WKH GLVFXVVLRQV EHORZ DUH IRXQG WR FRQIOLFW ZLWK WKHUHTXLUHPHQWVRIWKLV&RGHWKLV&RGHVKDOOSUHYDLO E ,PSURYHPHQWV IRU PLWLJDWLRQ RI LPSDFWV DW DQ LQGLYLGXDO ORFDWLRQ PXVW ZRUN HIIHFWLYHO\ UHODWLYH WR XSVWUHDP DQG GRZQVWUHDPURDGZD\FRQGLWLRQV$VH[DPSOHV •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• $SURSRVHGLPSURYHPHQWWKDWFDQQRWDFKLHYHHIIHFWLYH ODQHXWLOL]DWLRQGXHWRGRZQVWUHDPFRQGLWLRQVZRXOGQRW EHFRQVLGHUHGDQHIIHFWLYHLPSURYHPHQW)RUH[DPSOH SURYLVLRQ RI D VHFRQG WKURXJK ODQH ZLWK D UHFHLYLQJ ODQH RQ WKHIDU VLGH RI DQ LQWHUVHFWLRQ RI RQO\ IHHW LQOHQJWK •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¶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• 6RLO &HPHQW DV GHWDLOHG LQ 6HFWLRQ RI WKH )'27 6WDQGDUG 6SHFLILFDWLRQ IRU 5RDG %ULGJH &RQVWUXFWLRQ HGLWLRQ •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ò LQFKRI7\SH63DVSKDOWLFFRQFUHWHVXUIDFHFRXUVH :KHUHDVXEGLYLVLRQFROOHFWRULVUHTXLUHGDSDYHPHQWGHVLJQVKDOOEH VXEPLWWHG ZLWK WKH FRQVWUXFWLRQ SODQV WR GHWHUPLQH WKH PLQLPXP SDYHPHQWVWUXFWXUHUHTXLUHG+RZHYHULQQRFDVHVKDOODVWUXFWXUDO QXPEHUOHVVWKDQZLWKDPLQLPXPRIWKUHHLQFKHVRI7\SH63 DVSKDOWLFFRQFUHWHVXUIDFHFRXUVHEHSURYLGHG &RQVWUXFWLRQ RI D VXEGLYLVLRQ FROOHFWRU PD\ EH FRPSOHWHG LQ VWDJHV ZLWK óLQFKHV RI 63 RU 6 DVSKDOWLFFRQFUHWH VXUIDFH FRXUVH DORQJZLWKWKHUHTXLUHGSDYHPHQWPDUNLQJVLQVWDOOHGDWWKHWLPHRIWKH LQLWLDO FRQVWUXFWLRQ DQG ô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ò 7KH VKRXOGHU VHUYHV DV D FRQWLQXDWLRQ RI WKH GUDLQDJH V\VWHP WKHUHIRUH WKH VKRXOGHU FURVVVORSH VKDOO EH VRPHZKDW JUHDWHU WKDQ WKHDGMDFHQWWUDYHOODQH7KHFURVVVORSHRIWKHVKRXOGHUVVKDOOQRWEH VWHHSHUWKDQIHHWSHUIRRW 5RDGVLGH &OHDU =RQH 7KH URDGVLGH FOHDU ]RQH LV WKDW DUHD RXWVLGH WKH WUDYHOHG ZD\ DYDLODEOH IRU XVH E\ YHKLFOHV WKDW KDYH OHIW WKH WUDYHOHG ZD\ GXULQJ DYRLGDQFH PDQHXYHUV GXH WR ORVV RI FRQWURO RU GXH WR FROOLVLRQV ZLWK RWKHU YHKLFOHV 7KH SULPDU\ IXQFWLRQ RI WKH URDGVLGH FOHDU ]RQH LV WR DOORZ VSDFH DQG WLPH IRU WKH GULYHU RI D YHKLFOH WR UHWDLQ FRQWURO DQG DYRLG RU UHGXFH WKH FRQVHTXHQFHV RI FROOLVLRQ ZLWK URDGVLGH REMHFWV 7KLV DUHD DOVR VHUYHV DV DQ HPHUJHQF\UHIXJHORFDWLRQIRUGLVDEOHGYHKLFOHV ZSGDWDOGFUZOGFVWUHHWGHVLJQGHGLFDWLRQUHTXLUHPHQWV 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ 7KHZLGWKRIWKHURDGVLGHFOHDU]RQHVKRXOGEH DVZLGHDVSRVVLEOH 7KH PLQLPXP ZLGWKV PHDVXUHG IURP WKH IDFH RI WKH EDUULHU FXUE RU HGJH RI SDYHPHQW ZKHUH D EDUULHU FXUE LV QRW SURYLGHG VKDOO EH DV IROORZV 6WUHHW7\SH $ % 056DQG/)/'$FFHVVZD\V 2Q WKRVH URDGV ZKHUH WKH PLQLPXP UHTXLUHG FOHDU ]RQH LV IRXU IHHW WKH PLQLPXP FDQQRW EH UHDVRQDEO\ REWDLQHG DQG RWKHU DOWHUQDWLYHVDUHLPSUDFWLFDOWKHPLQLPXPPD\EHUHGXFHGWRQROHVV WKDQò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òIHHWIURPWKH)'277\SH)DQG'FXUE )'27 7\SH)DQG' &XUE ò ò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ò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¶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¶V06V E 6WRUPZDWHU GLVFKDUJHV WR 8QLWHG 6WDWHV ZDWHUV VKDOO EH FRQWUROOHG WR WKH H[WHQW WKDW WKH GLVFKDUJH ZLOO QRW DGYHUVHO\ LPSDFWWKHTXDOLW\ RU EHQHILFLDO XVHV RI WKH UHFHLYLQJ ZDWHU RU UHVXOWLQYLRODWLRQRIDQ\)HGHUDO6WDWHRUORFDOODZV F 5HSRUWLQJ ,OOHJDO 6WRUPZDWHU 'LVFKDUJH WR WKH 06V DQG 8QLWHG 6WDWHV :DWHUV 8SRQ GLVFRYHU\ RI VWRUPZDWHU GLVFKDUJH WR WKH &RXQW\¶V 06V WKDW GRHV RU ZLOO LPSDLU WKH RSHUDWLRQ RI RU FRQWULEXWH WR WKH IDLOXUH RI WKH &RXQW\¶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¶V 06V WKDW GRHV RU ZLOO LPSDLU WKH RSHUDWLRQ RI RU FRQWULEXWH WR WKH IDLOXUH RI WKH &RXQW\¶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¶V06RU8QLWHG6WDWHVZDWHUVZKLFKLVQRWFRPSRVHGHQWLUHO\ RI VWRUPZDWHU DQG LV QRW DXWKRUL]HG E\ DQ 13'(6 3HUPLW LV DQ LOOLFLW FRQQHFWLRQ DQG LV SURKLELWHG )DLOXUH RI D SHUVRQ UHVSRQVLEOH IRU D FRPPHUFLDO RU LQGXVWULDO IDFLOLW\ RU FRQVWUXFWLRQ VLWH WR REWDLQ 'HYHORSPHQW3HUPLWDSSURYDOSULRUWRFRQQHFWLRQWRWKH&RXQW\¶V06 LVDQLOOLFLWFRQQHFWLRQDQGLVSURKLELWHG 5HSRUWLQJ ,OOLFLW 1RQVWRUPZDWHU 'LVFKDUJHV RU ,OOLFLW &RQQHFWLRQV 8SRQGLVFRYHU\RIDQLOOLFLWGLVFKDUJHRULOOLFLWFRQQHFWLRQWKHSHUVRQV UHVSRQVLEOH IRU WKH GLVFKDUJH RU WKH FRQQHFWLRQ VKDOO UHSRUW WKHLU ILQGLQJV E\ WHOHSKRQH ZLWKLQ WZHOYH KRXUV WR WKH &RXQW\ $GPLQLVWUDWRURUGHVLJQHHDQGIROORZZLWKLQIRUW\HLJKWKRXUVZLWK ZULWWHQQRWLILFDWLRQ &RQWURO RI ,OOLFLW 1RQVWRUPZDWHU 'LVFKDUJHV RU ,OOLFLW &RQQHFWLRQV 3HUVRQV UHVSRQVLEOH IRU LOOLFLW GLVFKDUJHV RU LOOLFLW FRQQHFWLRQV VKDOO LPPHGLDWHO\ XSRQ QRWLILFDWLRQ RU GLVFRYHU\ LQLWLDWH SURFHGXUHV WR FHDVH GLVFKDUJLQJ RU SURYLGH VXLWDEOH FRQWDLQPHQW IDFLOLWLHV XQWLO FRUUHFWLYHPHDVXUHVDSSURYHGE\WKH&RXQW\DUHPDGHDQGPD\DOVR EHVXEMHFWWRILQHVDQGGDPDJHV ZSGDWDOGFUZOGFVWRUPZDWHUTXDOLW\ 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ ) * ,QVSHFWLRQDQG0DLQWHQDQFHRI06V ,QVSHFWLRQDQG0RQLWRULQJIRU&RPSOLDQFH&RXQW\SHUVRQQHOVKDOOEH JUDQWHGDFFHVVIRULQVSHFWLRQRIODQGVWUXFWXUHVPHFKDQLFDOV\VWHPV DQGIDFLOLWLHVGLVFKDUJLQJRUVXVSHFWHGRIGLVFKDUJLQJWRWKH&RXQW\ V 06VRU8QLWHG6WDWHVZDWHUVLQRUGHUWRHYDOXDWHDQGLQYHVWLJDWHWKH SRWHQWLDO IRU UHOHDVH RI PDWHULDOV RWKHU WKDQ VWRUPZDWHU RU SRWHQWLDO YLRODWLRQV RI DQ\ RI WKH WHUPV RI WKLV FRGH $OO VWUXFWXUHV V\VWHPV IDFLOLWLHVDQGSURFHVVHVZKLFKDOORZRUPD\UHVXOWLQGLVFKDUJHVWRWKH 06V RU 8QLWHG 6WDWHVZDWHUV DQG DOO UHFRUGV FRQFHUQLQJ WKHP VKDOO EH PDGH DFFHVVLEOH WR &RXQW\ SHUVRQQHO IRU LQYHVWLJDWLRQ DQG PRQLWRULQJRIWKHH[LVWHQFHRIRUTXDOLW\RIWKHGLVFKDUJHV 0DLQWHQDQFH 6WUXFWXUDO FRQWUROV DQG RWKHU %03V XVHG WR SUHYHQW QRQVWRUPZDWHU GLVFKDUJHV RU WR UHGXFH SROOXWDQWV LQ VWRUPZDWHU GLVFKDUJHV VKDOO EH RSHUDWHG DQG PDLQWDLQHG VR DV WR IXQFWLRQ LQ DFFRUGDQFH ZLWK WKH SHUPLWWHG GHVLJQ RU SHUIRUPDQFH FULWHULD DQG WR PHHWWKHVWDQGDUGVIRUGLVFKDUJHDOORZHGE\WKLVFRGH (QIRUFHPHQW3HQDOWLHVDQG3URFHHGLQJV $Q\ SHUVRQ ZKR YLRODWHV DQ\ VXEVHFWLRQ RI WKLV VHFWLRQ PD\ EH SURVHFXWHG DQG SXQLVKHG DV SURYLGHG E\ WKLV &RGH 6HFWLRQ ,Q DGGLWLRQWRDQ\ILQHVZKLFKPD\EHLPSRVHGE\WKLVVHFWLRQSHUVRQV UHVSRQVLEOHIRUDGLVFKDUJHZKLFKDGYHUVHO\LPSDFWVDUHFHLYLQJZDWHU VKDOO EH OLDEOH IRU DOO VDPSOLQJ DQG DQDO\WLFDO FRVWV LQFXUUHG LQ PRQLWRULQJ WKH GLVFKDUJH DQ\ 6WDWH RU )HGHUDO ILQHV LPSRVHG DV D UHVXOWRIWKHGLVFKDUJHDQGWKHFRVWRIUHPRYLQJRUSURSHUO\WUHDWLQJ WKH GLVFKDUJH IRU FRPSOHWH UHVWRUDWLRQ RI WKH TXDOLW\ RI DOO UHFHLYLQJ ZDWHUVWRWKHH[WHQWLQZKLFKWKH\ZHUHLPSDLUHG $Q\ ILQHV RU RWKHU IXQGV UHFHLYHG DV D UHVXOW RI HQIRUFHPHQW XQGHU WKLVVHFWLRQZKLFKDUHQRWXVHGIRUVSHFLILFSXUSRVHVVHWIRUWKLQWKH VHFWLRQVKDOOEHGHSRVLWHGLQWKH6WRUPZDWHU0DQDJHPHQW)XQG ZSGDWDOGFUZOGFVWRUPZDWHUTXDOLW\ 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ &+$37(5 '(9(/230(1767$1'$5'6 6(&7,21 67250:$7(5 6WRUPZDWHU0DQDJHPHQW5HTXLUHPHQWV $ ,QWHQWDQG3XUSRVH ,W LV WKH LQWHQW DQG SXUSRVH RI WKLV VHFWLRQ WR UHGXFH H[LVWLQJ DQG IXWXUH IORRGLQJ SUREOHPV LPSURYH VXUIDFH ZDWHU TXDOLW\ LQ WKH &RXQW\ DQG SURWHFW WKHIXQFWLRQVRIQDWXUDOIHDWXUHVDQGVXUILFLDODTXLIHUUHFKDUJH % $SSOLFDELOLW\ 7KLV VHFWLRQ VKDOO DSSO\ WR DOO GHYHORSPHQW ZKHUH DQ\ SRUWLRQ RI WKH GHYHORSPHQWLVZLWKLQWKHMXULVGLFWLRQRIXQLQFRUSRUDWHG3DVFR&RXQW\ & *HQHUDO6WDQGDUGVDQG$OWHUQDWLYH$SSURDFKHV *HQHUDO6WDQGDUGV 7KH VWRUPZDWHU PDQDJHPHQW PHWKRGRORJLHV DQG UHTXLUHPHQWV VKDOO EHLQDFFRUGDQFHZLWKWKLVVHFWLRQ 7KH GHYHORSHU VKDOO EH UHVSRQVLEOH IRU REWDLQLQJ DQ\ QHFHVVDU\ SHUPLWV IRU WKH VWRUPZDWHU PDQDJHPHQW V\VWHP UHTXLUHG E\ ORFDO 6WDWHRU)HGHUDODJHQFLHV ,Q DGGLWLRQ WR WKH VSHFLILF VWDQGDUGV RI WKLV VHFWLRQ VWRUPZDWHU PDQDJHPHQWV\VWHPVVKDOOEHGHVLJQHGWRHQVXUH D 6LWHDOWHUDWLRQVKDOOQRWFRQWULEXWHWRZDWHUEHFRPLQJDKHDOWK KD]DUGRUHQFRXUDJHWKHEUHHGLQJRIPRVTXLWRHV E 7KHGUDLQDJHDUHDXVHGLQUXQRIIFDOFXODWLRQVKDOOEHWKHWRWDO ZDWHUVKHG DUHD ZKLFK PD\ LQFOXGH DUHDV EH\RQG WKH VLWH OLPLWV F )ORRGVDIHW\KD]DUGVDQGKHDOWKKD]DUGVDUHUHGXFHGDQG G *URXQGZDWHU UHFKDUJH LV HQKDQFHG ZKHUH DSSOLFDEOH KRZHYHU LQ DQ DUHD GHVLJQDWHG DV D JURXQGZDWHU UHFKDUJH DUHDWKHGHYHORSHUVKDOOOLPLWUXQRIIIURPWKHSURSRVHGVLWHWR QRPRUHWKDQWKHSUHGHYHORSPHQWGLVFKDUJH $OWHUQDWLYHDQG,QQRYDWLYH$SSURDFKHV ZSGDWDOGFUZOGFVWRUPZDWHUPJPWUHTXLUHPHQWV 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ $OWHUQDWLYHDQGLQQRYDWLYHDSSURDFKHVWRWKHGHVLJQRIZDWHUUHWHQWLRQ RUGHWHQWLRQVWUXFWXUHVDQGIORZGHYLFHVPD\EHSURSRVHG ,I DOWHUQDWH DQG LQQRYDWLYH VWRUPZDWHU PDQDJHPHQW SODQV DUH SURSRVHG LW PXVW EH GHPRQVWUDWHG WR WKH VDWLVIDFWLRQ RI WKH &RXQW\ $GPLQLVWUDWRURUKLVGHVLJQHHWKDWWKHSURSRVHGGHYHORSPHQWDFWLYLW\ KDVEHHQSODQQHGGHVLJQHGDQGZLOOEHFRQVWUXFWHGDQGPDLQWDLQHG WRPHHWHDFKRIWKHVWDQGDUGVRIWKLVVHFWLRQ ' 3HUIRUPDQFHDQG'HVLJQ6WDQGDUGV 7RHQVXUHDWWDLQPHQWRIWKHLQWHQWDQGSXUSRVHRIWKLVVHFWLRQDQGWRHQVXUH WKDW VWDQGDUGV ZLOO EH PHW WKH GHVLJQ SHUIRUPDQFH FRQVWUXFWLRQ DQG PDLQWHQDQFHRIWKHGUDLQDJHV\VWHPVKDOOEHFRQVLVWHQWZLWKWKHIROORZLQJ $OO QHZ GHYHORSPHQWV VKDOO EH UHTXLUHG WR SURYLGH D GHWHQWLRQUHWHQWLRQ V\VWHP LQ RUGHU WR GHWDLQUHWDLQ LQFUHDVHG UXQRII FDXVHG E\ WKH GHYHORSPHQW :KHUH SXEOLF RU SULYDWH ODNHV SRQGV ERUURZ SLWV RU VLPLODU W\SH ZDWHU GHWHQWLRQUHWHQWLRQ DUHDV DUH LQFRUSRUDWHGLQDFRPSUHKHQVLYHGUDLQDJHSODQGUDLQDJHFDOFXODWLRQV VKDOO GHPRQVWUDWH WKDW WKH IDFLOLWLHV KDYH VXIILFLHQW FDSDFLW\ IRU WKH GHVLJQ VWRUP ,Q WKH GHVLJQ RI GHWHQWLRQUHWHQWLRQ IDFLOLWLHV WKH HIIHFWLYH YROXPH VKDOO EH EDVHG RQ WKH SRQG ERWWRP RUWKH VHDVRQDO KLJK JURXQGZDWHU OHYHO ZKLFKHYHU LV KLJKHU DV D PLQLPXP VWDUWLQJ HOHYDWLRQRIWKHVWDJHVWRUDJHFRPSXWDWLRQV 7KH UDWH RI VWRUPZDWHU GLVFKDUJH IURP QHZ GHYHORSPHQWV VKDOO EH OLPLWHG WR DPRXQWV ZKLFK DUH HTXDO WR RU OHVV WKDQ WKH UDWH RI GLVFKDUJH ZKLFK H[LVWHG SULRU WR GHYHORSPHQW LQ DFFRUGDQFH ZLWK 5XOHV' DQG ' )ORULGD $GPLQLVWUDWLYH &RGH )$& DGPLQLVWHUHG E\ WKH 6RXWKZHVW )ORULGD :DWHU 0DQDJHPHQW 'LVWULFW 6:):0' SURYLGHG KRZHYHU WKDW 'UDLQDJH %DVLQV RI 6SHFLDO &RQFHUQ VKDOO EH VXEMHFW WR WKH UHTXLUHPHQWV RI WKLV &RGH 6HFWLRQ1 7KH YROXPH RI VWRUPZDWHU GLVFKDUJH VKDOO EH LQ DFFRUGDQFH ZLWK 5XOHV' DQG ' )$& DGPLQLVWHUHG E\ WKH 6:):0' SURYLGHG KRZHYHU WKDW 'UDLQDJH %DVLQV RI 6SHFLDO &RQFHUQ VKDOO DOVREHVXEMHFWWRWKHUHTXLUHPHQWVRIWKLV&RGH6HFWLRQ1 3URWHFWRULPSURYHWKHTXDOLW\RIJURXQGDQGVXUIDFHZDWHU 0DLQWDLQ JURXQGZDWHU OHYHOV DQG HQKDQFH JURXQGZDWHU UHFKDUJH ZKHUHDSSOLFDEOH 3URWHFW WKH ZHWODQGV IRU WKH VWRUDJH RI VXUIDFH ZDWHUV DQG WKH ELRORJLFDODQGSK\VLFDOUHGXFWLRQDQGDVVLPLODWLRQRISROOXWDQWV ZSGDWDOGFUZOGFVWRUPZDWHUPJPWUHTXLUHPHQWV 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ 3UHYHQW VDOWZDWHU LQWUXVLRQ ZKHUH DSSOLFDEOH E\ DGKHULQJ WR %HVW 0DQDJHPHQW3UDFWLFHV 3UHYHQWGDPDJHVGXHWRLQFUHDVHGIORRGLQJ (QFRXUDJH WKH PDLQWHQDQFH RI WKH QDWXUDO OHYHOV RI VDOLQLW\ LQ HVWXDULQHDUHDV 0LQLPL]HDGYHUVHLPSDFWVWRIORUDIDXQDILVKDQGZLOGOLIHKDELWDWV 7RRWKHUZLVHIXUWKHUWKHREMHFWLYHVRIWKLV&RGH &KDQQHOLQJ UXQRII GLUHFWO\ LQWR QDWXUDO ZDWHU ERGLHV VKDOO EH SURKLELWHG XQOHVV SHUPLWWHG E\ DSSURSULDWH UHJXODWRU\ DJHQFLHV 5XQRIIVKDOOEHURXWHGWKURXJKVZDOHVDQGRWKHUV\VWHPVGHVLJQHGWR LQFUHDVHWLPHRIFRQFHQWUDWLRQGHFUHDVHYHORFLW\LQFUHDVHLQILOWUDWLRQ DOORZVXVSHQGHGVROLGVWRVHWWOHDQGRWKHUZLVHUHPRYHSROOXWDQWV 1DWXUDO ZDWHU FRXUVHV VKDOO QRW EH GUHGJHG FOHDUHG RI YHJHWDWLRQ GHHSHQHG ZLGHQHG VWUDLJKWHQHG VWDELOL]HG RU RWKHUZLVH DOWHUHG ZLWKRXW VSHFLILF DSSURYDO RI WKH DSSURSULDWH UHJXODWRU\ DJHQFLHV :DWHUVKDOOEHUHWDLQHGRUGHWDLQHGEHIRUHLWHQWHUVDQ\QDWXUDOZDWHU FRXUVH LQ RUGHU WR SUHVHUYH WKH QDWXUDO IORZ FKDUDFWHULVWLFV RI WKH ZDWHUFRXUVHDQGWRGHFUHDVHVLOWDWLRQDQGRWKHUSROOXWDQWV 7KH DUHD RI ODQG GLVWXUEHG E\ GHYHORSPHQW VKDOO EH DV VPDOO DV SUDFWLFDEOH 7KRVH DUHDV ZKLFK DUH QRW WR EH GLVWXUEHG VKDOO EH SURWHFWHG E\ DQ DGHTXDWH EDUULHU IURP FRQVWUXFWLRQ DFWLYLW\ :KHQHYHU SRVVLEOH QDWXUDO YHJHWDWLRQ VKDOO EH UHWDLQHG DQG SURWHFWHG 1R JUDGLQJ FXWWLQJ RU ILOOLQJ VKDOO EH FRPPHQFHG XQWLO HURVLRQ DQG VHGLPHQWDWLRQ FRQWURO GHYLFHV KDYH EHHQ LQVWDOOHG EHWZHHQ WKH GLVWXUEHGDUHDDQGZDWHUERGLHVZDWHUFRXUVHVDQGZHWODQGV /DQG ZKLFK KDV EHHQ FOHDUHG IRU GHYHORSPHQW DQG XSRQ ZKLFK FRQVWUXFWLRQ KDV QRW EHHQ FRPPHQFHG VKDOO EH SURWHFWHG IURP HURVLRQE\DSSURSULDWHWHFKQLTXHVGHVLJQHGWRUHYHJHWDWHWKHDUHD 7KH GUDLQDJH V\VWHP VKDOO EH GHVLJQHG VR WKDW VHGLPHQW VKDOO EH UHWDLQHGRQWKHVLWHRIWKHGHYHORSPHQW :HWODQGVDQGRWKHUZDWHUERGLHVVKDOOQRWEHXVHGDVVHGLPHQWWUDSV (URVLRQ DQG VHGLPHQWDWLRQ IDFLOLWLHV VKDOO EH UHJXODUO\ PDLQWDLQHG WR HQVXUHSURSHUIXQFWLRQ ZSGDWDOGFUZOGFVWRUPZDWHUPJPWUHTXLUHPHQWV 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ $UWLILFLDO ZDWHU FRXUVHV VKDOO EH GHVLJQHG FRQVLGHULQJ VRLO W\SH DQG VLGH EDQN VWDELOL]DWLRQ VR WKDW WKH YHORFLW\ IORZ GRHV QRW FDXVH HURVLRQ 9HJHWDWHG EXIIHU VWULSV VKDOO EH SURYLGHG RU ZKHUH SUDFWLFDEOH UHWDLQHG LQ WKHLU QDWXUDO VWDWH DORQJ WKH EDQNV RI DOO ZDWHU FRXUVHV ZDWHUERGLHVDQGRUZHWODQGV ,QWHUPLWWHQWZDWHUFRXUVHVVXFKDVVZDOHVVKDOOEHYHJHWDWHGH[FHSW ZKHUH IORZV H[FHHG ILYH IHHW SHUVHFRQG ISVWKHQ WKH\ VKDOO EH FRQFUHWHGRURWKHUZLVHVXIILFLHQWO\VWDELOL]HG $OWKRXJK WKH XVH RI ZHWODQGV IRU VWRULQJ DQG SXULI\LQJ ZDWHU LV HQFRXUDJHG FDUH PXVW EH WDNHQ QRW WR RYHUORDG WKHLU FDSDFLW\ WKHUHE\ KDUPLQJ WKH ZHWODQGV DQG WUDQVLWLRQDO YHJHWDWLRQ :HWODQGV VKRXOGQRWEHGDPDJHGE\WKHFRQVWUXFWLRQRIGHWHQWLRQSRQGV 5XQRII VKDOO EH UHWDLQHG RU GHWDLQHG RQ VLWH LQ DFFRUGDQFH ZLWK WKH DSSOLFDEOH6:):0'UXOHV 5XQRII IURP VWUHHWV DQG SDUNLQJ ORWV VKDOO EH WUHDWHG WR UHGXFH WKH TXDQWLW\RIRLODQGVHGLPHQWHQWHULQJUHFHLYLQJZDWHUV 7KH EDQNV RI GHWHQWLRQ DQG UHWHQWLRQ DUHDV VKDOO VORSH DW D JHQWOH JUDGH LQWR WKH ZDWHUV LQ DFFRUGDQFH ZLWK WKH DSSOLFDEOH &RXQW\ DQG 6:):0'UXOHVDVDVDIHJXDUGDJDLQVWGURZQLQJSHUVRQDOLQMXU\RU RWKHU DFFLGHQWV WR HQFRXUDJH WKHJURZWK RI YHJHWDWLRQ DQG WR DOORZ WKHDOWHUQDWHIORRGLQJDQGH[SRVXUHRIDUHDVDORQJWKHVKRUHDVZDWHU OHYHOVSHULRGLFDOO\ULVHDQGIDOO 7KH XVH RI GUDLQDJH GHWHQWLRQ DQG UHWHQWLRQ IDFLOLWLHV DQG YHJHWDWHG EXIIHU]RQHVDVRSHQVSDFHUHFUHDWLRQDQGFRQVHUYDWLRQDUHDVVKDOO EHHQFRXUDJHGH[FHSWZKHUHWKLV&RGHLVPRUHVWULQJHQW 'HYHORSPHQW LQFOXGLQJ JUDGLQJ VKDOO WDNH SODFH LQ D PDQQHU WKDW SURWHFWVWKHURRWVDQGVWDELOLW\RIWUHHV *HQHUDO VWRUPZDWHU FRQYH\DQFH IDFLOLWLHV LQFOXGH VZDOHV GLWFKHV FKDQQHOVFXOYHUWVVWRUPVHZHUVLQOHWVDQGZHLUV7KHFROOHFWLRQRI VWRUPZDWHUUXQRIIVKRXOGEHE\SRVLWLYHJUDYLW\PHDQVZLWKRXWWKHXVH RI VLSKRQV SXPSV RU VLPLODU GHYLFHV XQOHVV VSHFLILF DSSURYDO LV REWDLQHG 8QOHVV RWKHUZLVH DSSURYHG E\ WKH &RXQW\ VWDQGDUG GHWDLOV DQG VSHFLILFDWLRQV IRU WKH FRQVWUXFWLRQ RI VWRUP GUDLQDJH V\VWHPV VKDOO FRQIRUPWRDSSOLFDEOHVHFWLRQVRIWKHODWHVWHGLWLRQVRIWKHIROORZLQJ D )ORULGD 'HSDUWPHQW RI 7UDQVSRUWDWLRQ )'27 5RDGZD\ DQG 7UDIILF'HVLJQ6WDQGDUGVODWHVWHGLWLRQ ZSGDWDOGFUZOGFVWRUPZDWHUPJPWUHTXLUHPHQWV 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ E ( 6\VWHP'HVLJQV)UHTXHQF\RI'HVLJQ6WRUPV 7KH GUDLQDJH V\VWHPV VKDOO EH GHVLJQHG IRU GHVLJQ VWRUPV UHVXOWLQJ IURP UDLQIDOORIWKHIROORZLQJPLQLPXPIUHTXHQFLHV )'27 6WDQGDUG 6SHFLILFDWLRQV IRU 5RDG DQG %ULGJH &RQVWUXFWLRQODWHVWHGLWLRQ 7HQ<HDU$OOVWRUPVHZHUVDQGFXOYHUWVH[FHSWWKRVHFURVVLQJ DUWHULDO URDGV $ PLQLPXP WLPH RI FRQFHQWUDWLRQ RI ILIWHHQ PLQXWHVWRWKHILUVWLQOHWPD\EHXWLOL]HGLQGHWHUPLQLQJGHVLJQIORZV 7ZHQW\)LYH<HDU7ZHQW\)RXU+RXU$OOIORRGZD\VGLWFKHV FKDQQHOV DQG GHWHQWLRQUHWHQWLRQ DUHDV ZLWK RXWIDOOV RSHQ GUDLQDJH EDVLQ )LIW\<HDU$OOVWRUPVHZHUVDQGFXOYHUWVFURVVLQJDUWHULDOURDGV <HDU7ZHQW\)RXU +RXU $OO UHWHQWLRQ DUHDV ZLWKRXW RXWIDOOV FORVHGGUDLQDJHEDVLQ 5DLQIDOOLQWHQVLW\IDFWRUVVKDOOFRPHIURPDFFHSWHGPHWHRURORJLFDODQGUDLQIDOO VRXUFHVDSSOLFDEOHWRWKH&RXQW\ ) 5XQRII 5XQRII DQG URXWLQJ DQDO\VLV VKDOO EH EDVHG RQ FXUUHQW K\GURORJLFDO GHVLJQ SURFHGXUHV &RPSXWDWLRQV VKDOO LQFOXGH D WDEXODWLRQ RI LQIORZ GLVFKDUJH VWRUDJH FDSDFLW\ PLQLPXP DQG PD[LPXP ZDWHU HOHYDWLRQV DQG UHWHQWLRQGHWHQWLRQWLPHWRSHDN %DVLF K\GURORJLFDO FDOFXODWLRQV VKDOO EH EDVHG RQ FRPPRQO\ DFFHSWHG SURFHGXUHVVXFKDVWKRVHRI 1DWXUDO5HVRXUFHV&RQVHUYDWLRQ6HUYLFH D $0HWKRGIRU(VWLPDWLQJ9ROXPHDQG5DWHRI5XQRIILQ6PDOO :DWHUVKHGV 86 'HSDUWPHQW RI $JULFXOWXUH 1DWXUDO 5HVRXUFHV &RQVHUYDWLRQ 6HUYLFH 15&6 7HFKQLFDO 3DSHU 1R E 8UEDQ +\GURORJ\ IRU 6PDOO :DWHUVKHGV 86'$ 15&6 7HFKQLFDO5HOHDVH1R F 1DWLRQDO (QJLQHHULQJ +DQGERRN 6HFWLRQ +\GURORJ\ 86 'HSDUWPHQWRI$JULFXOWXUH15&6ODWHVWHGLWLRQ ZSGDWDOGFUZOGFVWRUPZDWHUPJPWUHTXLUHPHQWV 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ 7KH 15&6 7\SH,, )ORULGD 0RGLILHG 5DLQIDOO 'LVWULEXWLRQ ZLWK DQWHFHGHQW PRLVWXUH &RQGLWLRQ,, ZLOO EH XVHG 2WKHU UDLQIDOO GLVWULEXWLRQV PD\ EH XWLOL]HG IRU GHVLJQ ZLWK SULRU DSSURYDO RI WKH &RXQW\ 7KH VDPH VKDSH IDFWRU VKDOO EH XVHG IRU SUHGHYHORSPHQW DQG SRVWGHYHORSPHQW FDOFXODWLRQV XQOHVV RWKHUZLVH DSSURYHG E\ WKH &RXQW\ D 'UDLQDJH0DQXDO)'279ROXPH$ODWHVWHGLWLRQ E 6WDQGDUG (QJLQHHULQJ 7H[WV 7KH UDWLRQDO PHWKRG RI URXWLQJ DQDO\VLV PD\ EH XVHG IRU V\VWHPV VHUYLQJ SURMHFWV ZLWK OHVV WKDQILYHDFUHVWRWDOFRQWULEXWLQJDUHD 7KH UDWLRQDO PHWKRG RI URXWLQJ DQDO\VLV PD\ EH XVHG IRU V\VWHPV VHUYLQJSURMHFWVZLWKOHVVWKDQILYHDFUHVWRWDOFRQWULEXWLQJDUHD 5DWLRQDO0HWKRG 2WKHUV$OWHUQDWLYHVDV$SSURYHGE\WKH&RXQW\ 8OWLPDWH ODQG XVDJH VKDOO EH DVVXPHG IRU WKH VHOHFWLRQ RI SURSHU UXQRII FRHIILFLHQWV RU FXUYH QXPEHUV ZLWKLQ WKH EDVLQV LQYROYHG :HLJKWHGUXQRIIFRHIILFLHQWVRUFXUYHQXPEHUVVKDOOEHXWLOL]HGZKHUH GLIIHUHQW FRHIILFLHQWV RU FXUYH QXPEHUV H[LVW ZLWKLQ WKH DUHDV FRPSULVLQJWKHEDVLQ * 6WDQGDUGV IRU 'HWHQWLRQ5HWHQWLRQ 6WRUPZDWHU 5XQRII 6WRUDJH'LVFKDUJH DQG)ORRGSODLQ(QFURDFKPHQW 7KH GHWHQWLRQUHWHQWLRQ RI FXPXODWLYH VWRUPZDWHU UXQRII LQ H[FHVV RI SUHGHYHORSPHQW UHOHDVH UDWHV VKDOO EH SURYLGHG E\ VXIILFLHQW VWRUDJH FDSDFLW\ FRQVWUXFWHG RQ WKH SURSHUW\ WR EH GHYHORSHG RU ZLWKLQ DSSURYHG RIIVLWH GUDLQDJH DUHDV 'HWHQWLRQUHWHQWLRQ VWRUDJH FDSDFLW\ VKDOO EH EDVHG RQ D WZHQW\ILYH \HDUWZHQW\IRXU KRXUGHVLJQIRURSHQEDVLQV'HVLJQKLJKZDWHUHOHYDWLRQVVKDOO EH HVWDEOLVKHG LQ FRQVLGHUDWLRQ RI DGMDFHQW SURSHUWLHV DQG IDFLOLWLHV VXFKWKDWRIIVLWHGUDLQDJHLPSDFWVDUHPLQLPL]HG 7KH GHWHQWLRQUHWHQWLRQ IDFLOLWLHV GHVLJQHG IRU WKH VWRUDJH RI VWRUPZDWHUWRFRQWUROUXQRIIUDWHVVKDOO D %H GHVLJQHG LQ DFFRUGDQFH ZLWK UHTXLUHPHQWV RI WKH 6:):0'WKH)'27RURWKHUDJHQFLHVZLWKMXULVGLFWLRQ E %H LGHQWLILHG DV D GUDLQDJH HDVHPHQW RQ WKH ILQDO SODW RI D VXEGLYLVLRQRUGXO\UHFRUGHGDVVXFKLQRWKHUGHYHORSPHQWV F +DYH EDQN VORSH JUDGHV QRW VWHHSHU WKDQ IRXU IHHW KRUL]RQWDOWRRQHIRRWYHUWLFDOZKLFKVKDOOEHVRGGHGWRWKH ZSGDWDOGFUZOGFVWRUPZDWHUPJPWUHTXLUHPHQWV 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ VHDVRQDO KLJK ZDWHU HOHYDWLRQ 6ORSHV VWHHSHU WKDQ PD\ EHVXEPLWWHGIRUUHYLHZDQGPD\EHDSSURYHGE\WKH&RXQW\ :HW SRQGV ZLWK VORSHV VWHHSHU WKDQ PD\ UHTXLUH WKH LQVWDOODWLRQRIDVHFXULW\IHQFH G ,QFOXGH DQ RXWOHW VWUXFWXUH LQ GHWHQWLRQ IDFLOLWLHV VL]HG WR UHOHDVH DV D PD[LPXP WKH SUHGHYHORSPHQW UXQRII UDWH DQG GHVLJQHGWRSURYLGHZDWHUTXDOLW\WUHDWPHQWRIWKHUXQRIIIURP WKHFRQWULEXWLQJDUHDLQDFFRUGDQFHZLWKDSSOLFDEOHVWDQGDUGV RI WKH UHVSHFWLYH DJHQFLHV WKH 6:):0' WKH )ORULGD 'HSDUWPHQW RI (QYLURQPHQWDO 3URWHFWLRQ DQG WKH )'27 KDYLQJMXULVGLFWLRQ H %H FRQVWUXFWHG WR SURYLGH D PLQLPXP RI VL[ LQFKHV RI IUHHERDUG EHWZHHQ WKH GHVLJQ KLJK ZDWHU HOHYDWLRQ DQG WKH ORZHVW EHUP HOHYDWLRQ VXUURXQGLQJ WKH GHWHQWLRQUHWHQWLRQ DUHD I :KHUH SUDFWLFDEOH LQFOXGH LQ GHWHQWLRQ DUHDV DQ HPHUJHQF\ RYHUIORZVSLOOZD\RURWKHUVWUXFWXUHDFFHSWDEO\SURWHFWHGIURP HURVLRQ ZLWK WKH LQYHUW QR ORZHU WKDQ WKH GHVLJQ KLJK ZDWHU OHYHO J +DYHWKHGLVFKDUJHRIFRQWUROOLQJDQGRYHUIORZVWUXFWXUHVIORZ WKURXJK DQ DEXWWLQJ GUDLQDJH HDVHPHQW RU SXEOLF ULJKWRIZD\ LQRUGHUWRFRQYH\VWRUPZDWHUUXQRIIDZD\IURPWKHGHWHQWLRQ DUHD K ,QFOXGH VSHFLDO HQJLQHHULQJ IHDWXUHV VXFK DV VNLPPHUV GHVLJQHG WR UHPRYH RLOV DQG RWKHU REMHFWLRQDEOH PDWHULDOV LQ DFFRUGDQFHZLWKFULWHULDHVWDEOLVKHGE\WKH6:):0' 2IIVLWHGLVFKDUJHLVOLPLWHGWRDPRXQWVZKLFKZLOOQRWFDXVHDGYHUVH RIIVLWHLPSDFWV D )RU D SURMHFW RU SRUWLRQ RI D SURMHFW ORFDWHG ZLWKLQ DQ RSHQ GUDLQDJH EDVLQ WKH DOORZDEOH GLVFKDUJH VKDOO QRW H[FHHG WKH KLVWRULF GLVFKDUJH ZKLFK LV WKH SHDN UDWH DW ZKLFK UXQRII OHDYHV D SDUFHO RI ODQG XQGHU H[LVWLQJ VLWH FRQGLWLRQV 7KHVH FULWHULDVKDOOQRWDSSO\WRSURMHFWVZKLFKKDYHEHHQGLVFKDUJLQJ VWRUPZDWHUUXQRIIGLUHFWO\WRWKH*XOIRI0H[LFR E )RU D SURMHFW RU SRUWLRQ RI D SURMHFW ORFDWHG ZLWKLQ D FORVHG GUDLQDJH EDVLQ WKH UHTXLUHG UHWHQWLRQ YROXPH VKDOO EH WKH SRVWGHYHORSPHQW UXQRII YROXPH OHVV WKH SUHGHYHORSPHQW UXQRII YROXPH FRPSXWHG XVLQJ WKH 6:):0' V WZHQW\IRXU KRXU\HDUUDLQIDOOPDSDQGWKH6&67\SH,,)ORULGD PRGLILHG WZHQW\IRXU KRXU UDLQIDOO GLVWULEXWLRQ ZLWK DQ DQWHFHGHQW PRLVWXUH &RQGLWLRQ,, 7KH WRWDO SRVWGHYHORSPHQW ZSGDWDOGFUZOGFVWRUPZDWHUPJPWUHTXLUHPHQWV 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ YROXPH OHDYLQJ WKH VLWH VKDOO EH QR PRUH WKDQ WKH WRWDO SUHGHYHORSPHQW YROXPH OHDYLQJ WKH VLWH IRU WKH GHVLJQ \HDUVWRUPXQOHVVRWKHUZLVHDSSURYHGE\WKH&RXQW\ 0DLQWHQDQFHRISUHGHYHORSPHQWRIIVLWHORZIORZPD\EHUHTXLUHGLQ K\GURORJLFDOO\VHQVLWLYHDUHDV )ORRGSODLQ(QFURDFKPHQW 1RQHWHQFURDFKPHQWLQWRWKHIORRGSODLQXSWRWKDWHQFRPSDVVHGE\ WKH \HDU HYHQW ZKLFK ZLOO DGYHUVHO\ DIIHFW HLWKHU FRQYH\DQFH VWRUDJHZDWHUTXDOLW\RUDGMDFHQWODQGVZLOOEHDOORZHG$Q\UHTXLUHG FRPSHQVDWLQJ VWRUDJH VKDOO EH HTXLYDOHQWO\ SURYLGHG EHWZHHQ WKH VHDVRQDO KLJK ZDWHU OHYHO DQG WKH \HDU IORRG OHYHO WR DOORZ VWRUDJHIXQFWLRQGXULQJDOOOHVVHUIORRGHYHQWV$GHWDLOHGIORRGVWXG\ SHUIRUPHG E\ D UHJLVWHUHG HQJLQHHU ZKLFK LQGLFDWHV QR DGYHUVH LPSDFWWRRIIVLWHIORRGHOHYDWLRQVPD\EHDSSURYHGE\WKH&RXQW\WR OHVVHQRUUHPRYHWKHIORRGSODLQFRPSHQVDWLRQUHTXLUHPHQWV $GHTXDWH SURYLVLRQV VKDOO EH PDGH WR DOORZ GUDLQDJH IURP RIIVLWH XSVWUHDP DUHDVWR GRZQVWUHDP DUHDV ZLWKRXW DGYHUVHO\ DIIHFWLQJ WKH XSVWUHDPRUGRZQVWUHDPDUHDV 2II6LWH/DQGV + ([ILOWUDWLRQ V\VWHPV DQG SHUFRODWLRQ GHVLJQHG LQ FRQMXQFWLRQ ZLWK GHWHQWLRQUHWHQWLRQV\VWHPV D 7KH GHWHQWLRQUHWHQWLRQ IDFLOLWLHV PXVW KDYH WKH FDSDFLW\ WR UHWDLQ WKH YROXPH UHTXLUHG IRU ZDWHU TXDOLW\ WUHDWPHQW ZLWKRXW FRQVLGHULQJGLVFKDUJHV E 7KH VHDVRQDO KLJK ZDWHU OHYHO PXVW EH DW OHDVW RQH IRRW EHORZWKHERWWRPRIWKHH[ILOWUDWLRQSLSH F ([ILOWUDWLRQVKRXOGQRWEHSURSRVHGIRUV\VWHPVWREHRSHUDWHG DQGPDLQWDLQHGE\WKH&RXQW\XQOHVVRWKHUZLVHDSSURYHGE\ WKH%&& G 'RXEOH ULQJ LQILOWURPHWHU WHVWV VKDOO EH SHUIRUPHG DW HDFK GHWHQWLRQUHWHQWLRQIDFLOLW\7KHVDLGWHVWVKDOOEHSHUIRUPHGDW WKHDSSUR[LPDWHHOHYDWLRQRILQILOWUDWLRQ H $VDIHW\IDFWRURIRUPRUHVKDOOEHDSSOLHGLQWKHH[ILOWUDWLRQ GHVLJQ WR DOORZ IRU JHRORJLFDO XQFHUWDLQWLHV E\ GLYLGLQJ WKH SHUFRODWLRQUDWHE\WKHVDIHW\IDFWRU 6WRUP6HZHU6\VWHPV ZSGDWDOGFUZOGFVWRUPZDWHUPJPWUHTXLUHPHQWV 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ 7KH FDSDFLW\ RI LQOHWV ZLWK WKH DOORZDEOH KHDG FRQGLWLRQV VKRXOG HTXDO RU H[FHHG WKH UXQRII IURP WKHLU LQGLYLGXDO GUDLQDJH DUHDV 7KH VL]H W\SH DQG ORFDWLRQ RI VWRUP VHZHU LQOHWV JUDWLQJV RU RWKHU RSHQLQJV LQWR DQ HQFORVHG VWRUP GUDLQDJH V\VWHP VKDOO EH LQ DFFRUGDQFH ZLWK WKH )'27 'UDLQDJH 0DQXDOODWHVWHGLWLRQXQOHVVRWKHUZLVHDSSURYHGE\WKH&RXQW\ 'UDLQDJH6WUXFWXUHV D E , 5RDGZD\ ,QOHWV 5RDGZD\ LQOHWV LQ FXUE DQG JXWWHU FRQVWUXFWLRQVKDOOEHGHVLJQHGDQGFRQVWUXFWHGWR $YRLGDEUXSWFKDQJHVLQK\GUDXOLFVORSHDQGYHORFLW\ /LPLWWKHTXDQWLW\RIVWRUPZDWHUIORZLQJLQDVWUHHWWRD GHSWKQRWWRH[FHHGWZRLQFKHVEHORZWKHFURZQRI FROOHFWRU VWUHHWV DQG DUWHULDO VWUHHWV XQOHVV RWKHUZLVH DSSURYHGLQZULWLQJE\WKH&RXQW\EXWLQQRFDVHVKDOO PRUH WKDQ RQHKDOI WKH ZLGWK RI WKH RXWVLGH ODQH EH IORRGHGDWGHVLJQIORZ/LPLWWKHTXDQWLW\RIVWRUPZDWHU IORZLQJ LQ ORFDO UHVLGHQWLDO VWUHHWV WR D GHSWK QRW WR H[FHHG VL[ LQFKHV GHHS DW WKH LQOHW DW WKH GHVLJQ IORZ 3UHYHQWGHVLJQIORZVDFURVVVWUHHWLQWHUVHFWLRQVXQOHVV FRQFUHWHYDOOH\JXWWHUVDUHDSSURYHGE\WKH&RXQW\ +DYHIRUPHGLQYHUWVDPLQLPXPRIVL[LQFKHVDERYH WKHIORZOLQHWRSURSHUO\GUDLQLQOHWERWWRPV +DYHSLSHVFXWIOXVKZLWKWKHLQVLGHZDOO 3URYLGHIRUHDVHRIPDLQWHQDQFH &RPPHUFLDO 3DUNLQJ /RW ,QOHWV &RPPHUFLDO SDUNLQJ ORW LQOHWV VKDOOEHGHVLJQHGDQGFRQVWUXFWHGWR $FFRPPRGDWH D WHQ \HDUWZHQW\IRXU KRXU VWRUP +DYH WKH K\GUDXOLF JUDGLHQW DW RU EHORZ WKH LQOHW HOHYDWLRQ 3LSH6WDQGDUGV 7KH SLSLQJ DQG DSSXUWHQDQFHV XVHG LQ WKH VWRUPZDWHU FROOHFWLRQ V\VWHPVKDOOEHGHVLJQHGWRFRQYH\WKHUXQRIIRIDWHQ\HDUVWRUP ZLWK D PLQLPXP WLPH RI FRQFHQWUDWLRQ RI QRW OHVV WKDQ ILIWHHQ PLQXWHVWRWKHILUVWLQOHW ZSGDWDOGFUZOGFVWRUPZDWHUPJPWUHTXLUHPHQWV 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ 8QOHVV RWKHUZLVH DSSURYHG E\ WKH &RXQW\ UHLQIRUFHG FRQFUHWH SLSH 5&3VKDOOEHXVHGLQDOOHDVHPHQWVDQGVWUHHWULJKWVRIZD\ZLWKWKH H[FHSWLRQRIUHVLGHQWLDOGULYHZD\V$OOVWRUPVHZHUSLSHVDQGFXOYHUWV VKDOOKDYHDPLQLPXPRIVL[LQFKHVRIFRYHUIURPRXWVLGHFURZQRI SLSHWRERWWRPRIURDGZD\EDVHFRXUVH7KHPLQLPXPFRYHURISLSH LQVZDOHDUHDVVKDOOEHRQHIRRWXQOHVVRWKHUZLVHDSSURYHGE\WKH &RXQW\ 0LQLPXP SLSH VL]HV QRW LQFOXGLQJ GULYHZD\ FXOYHUWV VKDOO EH DV IROORZV 7\SH 8QGHU'UDLQV 3LSH&XOYHUW %R[&XOYHUW 5RXJKQHVV FRHIILFLHQWV IRU XVH LQ 0DQQLQJ V )RUPXOD IRU VWRUP SLSH DQGER[FXOYHUWVVKDOOEHDVIROORZV D E 1 LQFOXVLYH LQFOXVLYH DQGXSLQFOXGLQJVPRRWKFRQFUHWHER[HV RIVTXDUHIHHWDQGXS &RUUXJDWHG0HWDO3LSH&03RU$OXPLQXP3LSH $VSKDOW&RDWHG 7KHVORSHVIRUFXOYHUWVXVHGDVVWRUPVHZHUVVKDOOSURGXFHDYHORFLW\ ZLWKLQWKHIROORZLQJOLPLWVXQOHVVRWKHUZLVHDSSURYHGE\WKH&RXQW\ 0D[LPXP &RQFUHWH3LSHDQG%R[&XOYHUWV $SSOLFDWLRQVRIWKHVHYDOXHVWRRYDORUHOOLSWLFDOSLSHVKDOOEHEDVHGRQ HTXLYDOHQWURXQGGLDPHWHU ; $SSOLFDWLRQRIWKHVHYDOXHVWRRYDORUHOOLSWLFDOSLSHVKDOOEHEDVHGRQ HTXLYDOHQWURXQGGLDPHWHU 0LQLPXP6L]H 5&3ISV &03ISV 0LQLPXP ISV ISV 7KHPD[LPXPOHQJWKRISLSHZLWKRXWDQDFFHVVVWUXFWXUHVKDOOEH D SLSHV E DQGRYHUDQGDOOER[FXOYHUWV ZSGDWDOGFUZOGFVWRUPZDWHUPJPWUHTXLUHPHQWV 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ 7KHPLQLPXPDQGPD[LPXPDOORZDEOHK\GUDXOLFVORSHVVKDOOEHWKRVH WKDW SURGXFH WKH DIRUHPHQWLRQHG PLQLPXP DQG PD[LPXP YHORFLWLHV 0DQKROHVPD\EHXVHGDVGURSVWUXFWXUHVZKHUHQHFHVVDU\WROHVVHQ VORSHVLQVWRUPVHZHUV &XOYHUW FDSDFLW\ VKDOO EH EDVHG RQ VRXQG HQJLQHHULQJ SUDFWLFH 'HWDLOHG DQDO\VLV DQG GHVLJQ VKDOO EH EDVHG RQ HLWKHU LQOHW RU RXWOHW FRQWURO ZKLFKHYHU LV DSSOLFDEOH XVLQJ DSSURSULDWH HQWUDQFH ORVV FRHIILFLHQWV DQG FXOYHUW QRPRJUDSKV %DFNZDWHU FXUYH GDWD IORRG SURILOHVDQGRWKHUK\GUDXOLFLQIRUPDWLRQDORQJDZDWHUVKHGUHDFKVKDOO EHXVHGWRHVWDEOLVKGHVLJQZDWHUHOHYDWLRQVDQGVHWWKHFXOYHUWFURZQ HOHYDWLRQV :KHQ UHTXLUHG WR FRQWURO KLJK JURXQGZDWHU FRQGLWLRQV XQGHUGUDLQV VKDOOEHGHVLJQHGWRPDLQWDLQWKHJURXQGZDWHUWDEOHHOHYDWLRQDWOHDVW WZHQW\IRXULQFKHVEHORZWKHHGJHRIWKHSDYHPHQW - 8QOHVVRWKHUZLVHDSSURYHGE\WKH&RXQW\GULYHZD\VDFURVVURDGVLGH VZDOHV ZLOO UHTXLUH WKH SODFHPHQW RI D GUDLQDJH FXOYHUW VLGH GUDLQ XQGHUWKHGULYHZD\LQRUGHUQRWWRLPSHGHIORZLQWKHVZDOHUHVXOWLQJ LQ DQ LQFUHDVH RI EDFNZDWHU RQWR XSVWUHDP SURSHUW\ &XOYHUWV LQ UHVLGHQWLDO DUHDV PD\ EH &03 RU 5&3 ZLWK D PLQLPXP GLDPHWHU RI ILIWHHQLQFKHV&XOYHUWVLQFRPPHUFLDODUHDVVKDOOEH5&3ZLWKD PLQLPXPGLDPHWHURIHLJKWHHQLQFKHV 6FRXUDQG(URVLRQ ,WVKDOOEHWKHUHVSRQVLELOLW\RIWKHGHYHORSHUWRFRQWUROVRLOHURVLRQE\ZLQGRU ZDWHUIURPWKHGDWHRIJURXQGEUHDNLQJXQWLOVXFKWLPHDVWKHUHVSRQVLELOLW\LV WUDQVIHUUHGWRDQDFFHSWDEOHHQWLW\LQDFFRUGDQFHZLWKWKLV&RGH 7KHGHYHORSHU VHQJLQHHUPXVWSURYLGHIRUXVHRIVHGLPHQWEDVLQVVWUDZEDOH GDPV YHORFLW\ FKHFNV K\GURVHHGLQJ DSSOLFDWLRQV HWF WR PLQLPL]H HURVLRQ ZLWKLQWKHOLPLWVRIWKHVLWHEHLQJGHYHORSHGDQGSUHYHQWGDPDJHWRZHWODQG V\VWHPVZKLFKDUHWRUHPDLQLQWKHGHYHORSPHQW 7KHGHVLJQRIFDQDOVVWUHDPVGLWFKHVDQGRWKHUZDWHUZD\VVKDOOEHEDVHG RQFXUUHQWRSHQFKDQQHOGHVLJQSURFHGXUHVXVLQJWKH&KH]\7DOERWDQGRU 0DQQLQJ V )RUPXOD 'HVLJQ YHORFLWLHV ZLWKRXW HURVLRQ SURWHFWLRQ VKDOO QRW H[FHHG WKH PD[LPXPVIRU VRLO W\SHV DV VKRZQ EHORZ :KHUH GHVLJQ OHYHOV H[FHHG WKH WRS RI EDQNV IRU WKH UHTXLUHG GHVLJQ VWRUP LH WZHQW\ILYH \HDU IRU PDMRU ZDWHUZD\V DQG EHUPV DUH QRW SURYLGHG WKH H[WHQW RI IORRGLQJLQWKHIORRGSODLQVKDOOEHVKRZQ5XQRIIDQGURXJKQHVVFRHIILFLHQWV VDIHYHORFLWLHVQRPRJUDSKVHURVLRQFRQWURODQGSUDFWLFDOOLPLWDWLRQVRQXVH RI GHVLJQ IRUPXODV VKDOO EH EDVHG RQ FXUUHQW SUDFWLFH LQ WKH ILHOG RI K\GUDXOLFVQRWZLWKVWDQGLQJDQ\UHTXLUHPHQWVRIWKLVVHFWLRQ ZSGDWDOGFUZOGFVWRUPZDWHUPJPWUHTXLUHPHQWV 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ &RQGLWLRQV VXFK DV DOLJQPHQW DQG SUHVHQFH RI VHYHU LUUHJXODULWLHV LQ VPRRWKQHVV ZLOO DOWHU WKH DOORZDEOH YHORFLWLHV 0D[LPXP IORZ YHORFLWLHV IRU YDULRXVVRLOW\SHVZLWKRXWHURVLRQSURWHFWLRQDUHDVIROORZV 7\SHRI6RLO )LQH6DQG 6DQG\/RDP 6LOW/RDP )LUP/RDP )LQH*UDYHO ISV ISV ISV ISV ISV 7KH DERYH DOORZDEOH YHORFLWLHV PD\ EH LQFUHDVHG LI DSSURSULDWH HURVLRQ SURWHFWLRQGHYLFHVDUHSURYLGHGDQGDSSURYHG $OORZDEOH9HORFLW\ :KHUH HURVLRQ SURWHFWLRQ VWUXFWXUHV DUH FRQVWUXFWHG LQ IORRGZD\ EDQNV DQG ERWWRPVWKHGHVLJQVHFWLRQVKDOOEHVHOHFWHGWRSURYLGHDPD[LPXPYHORFLW\ RI WHQ ISV ZLWK HQHUJ\ GLVVLSDWLRQ VWUXFWXUHV DW IORZ GLVFKDUJHV WR XQSURWHFWHG IORRGZD\V &KHFN GDPV GHVLJQHG WR FRQWURO YHORFLWLHV LQ RSHQ FKDQQHOV VKDOO EH GHWDLOHG LQ WKH SODQV RI WKH SURSRVHG GHYHORSPHQW WR SURYLGHDFFHSWDEOHHURVLRQSURWHFWLRQ . /RW'UDLQDJH 'UDLQDJH3ODQ 7KH ILQLVKHG JUDGH RI LQGLYLGXDO ORWV VKDOO EH VKRZQ RQ WKH FRQVWUXFWLRQSODQV*HQHUDOO\ORWVVKDOOEHJUDGHGLQDFFRUGDQFHZLWK 7\SHV$%RU&7\SLFDO*UDGLQJ3ODQVDVVKRZQLQ)LJXUHV$ %DQG&:KHQWRSRJUDSK\RURWKHUIHDWXUHVPDNHVXFK ORWJUDGLQJLPSUDFWLFDODOWHUQDWHVWDQGDUGVPD\EHSUHVHQWHGIRUWKH &RXQW\$GPLQLVWUDWRU VRUKLVGHVLJQHH VUHYLHZDQGDSSURYDO 7KHSURSRVHGPLQLPXPILQLVKHGIORRUHOHYDWLRQRIDOOVWUXFWXUHVZKLFK PD\EHFRQVWUXFWHGVKDOOEHLQFOXGHGRQWKHFRQVWUXFWLRQSODQV$VD PLQLPXP WKH ILQLVKHG IORRU HOHYDWLRQ VKDOO EH DW OHDVW VL[WHHQ LQFKHV DERYH WKH KLJKHVW FURZQ OLQH RI WKH VWUHHW O\LQJ EHWZHHQ WKHSURMHFWLRQRIWKHVLGHEXLOGLQJOLQHVXQOHVVRWKHUZLVHDSSURYHGE\ WKH &RXQW\ $GPLQLVWUDWRU RU KLV GHVLJQHH ,Q QR FDVH VKDOO ILQLVKHG IORRU HOHYDWLRQV EH VSHFLILHG EHORZ WKH \HDU IORRG SODLQ DV GHVLJQDWHG E\ WKH )HGHUDO ,QVXUDQFH $GPLQLVWUDWLRQ )ORRG +D]DUG %RXQGDU\0DSV:KHQDGHWDLOHGVWXG\IURPWKH)HGHUDO(PHUJHQF\ 0DQDJHPHQW $JHQF\ )(0$ KDV QRW EHHQ SURYLGHG WKH HQJLQHHU VKDOO VXEPLW WKH EHVW DYDLODEOH GDWD IRU WKH \HDU EDVH IORRG HOHYDWLRQ IRU UHYLHZ DQG DSSURYDO E\ WKH &RXQW\ $GPLQLVWUDWRU RU KLV GHVLJQHH ZSGDWDOGFUZOGFVWRUPZDWHUPJPWUHTXLUHPHQWV 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ ),*85($ 7<3($7<3,&$/*5$',1*3/$1 ZSGDWDOGFUZOGFVWRUPZDWHUPJPWUHTXLUHPHQWV 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ ZSGDWDOGFUZOGFVWRUPZDWHUPJPWUHTXLUHPHQWV 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ ),*85(% 7<3(%7<3,&$/*5$',1*3/$1 ZSGDWDOGFUZOGFVWRUPZDWHUPJPWUHTXLUHPHQWV 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ ZSGDWDOGFUZOGFVWRUPZDWHUPJPWUHTXLUHPHQWV 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ ),*85(& 7<3(&7<3,&$/*5$',1*3/$1 ZSGDWDOGFUZOGFVWRUPZDWHUPJPWUHTXLUHPHQWV 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ ZSGDWDOGFUZOGFVWRUPZDWHUPJPWUHTXLUHPHQWV 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ )RUORWVRQHDFUHRUOHVVLQVL]HWZRFRSLHVRIDGUDLQDJHSODQ VKDOOEHVXEPLWWHGZLWKWKH%XLOGLQJ3HUPLW$SSOLFDWLRQIRUUHYLHZDQG DSSURYDO 7KH IROORZLQJ LQIRUPDWLRQ VKDOO EH LQFOXGHG LQ WKH SODQ ZKLFKVKDOOEHVLJQHGDQGVHDOHGE\D)ORULGDUHJLVWHUHG3URIHVVLRQDO (QJLQHHU 'UDLQDJH3ODQ5HTXLUHPHQWVIRU,QGLYLGXDO/RWV D 7KH SODQ VKDOO LQGLFDWH WKH QDPH RI WKH GHYHORSPHQW LI DSSOLFDEOH VFDOH RI SODQ QRUWK DUURZ DQG OHJHQG SDUFHO LGHQWLILFDWLRQQXPEHURUOHJDOGHVFULSWLRQVXIILFLHQWWRGHVFULEH WKHVL]HDQGORFDWLRQRIWKHSURMHFWVLWHLQFOXGLQJWKHSODWERRN SDJH DQG QXPEHU LI SODWWHG DQG WKH QDPH DGGUHVV DQG WHOHSKRQH QXPEHU RI WKH EXLOGHU RZQHU DQG HQJLQHHU VXUYH\RU E 7KH SODQ VKDOO VKRZ WKH DEXWWLQJ VHFWLRQV RI DQ\ URDGZD\V DQG WKH FRUUHVSRQGLQJ HOHYDWLRQV DORQJ WKH SURMHFWLRQ RI WKH EXLOGLQJ OLQHV RQWR WKH FHQWHUOLQH RI WKH URDGZD\V DQG WKH HOHYDWLRQVRQDOOFRUQHUVRIWKHEXLOGLQJSDG/RWHOHYDWLRQDWD PLQLPXP RI D IRRW JULG IRU ORWV ODUJHU WKDQ RQH DFUH DQGDILIW\IRRWJULGPLQLPXPIRUORWVRQHDFUHRUOHVV $UHIHUHQFHHOHYDWLRQPD\EHDVVXPHG /RW'UDLQDJH(QIRUFHPHQW D 3ULRU WR FRQVWUXFWLQJ D VWUXFWXUH RQ RQH DFUH RU OHVV WKH EXLOGHUVKDOOEHUHTXLUHGWRSURYLGHDQHQJLQHHUHGORWJUDGLQJ SODQ ZLWK WKH %XLOGLQJ 3HUPLW $SSOLFDWLRQ WKDW GRHV QRW FDXVH DQDGYHUVHLPSDFWRQDGMDFHQWRURIIVLWHSURSHUW\ E $V SDUW RI WKH %XLOGLQJ 3HUPLW $SSOLFDWLRQ IRU DQ\ DFFHVVRU\ VWUXFWXUH RQ RQH DFUH RU OHVV ZKHUH LPSHUYLRXV DUHD LV DGGHGRUZKHUHDORW VFRQWRXUVDUHSURSRVHGWREHDOWHUHGIRU DQDUHDRYHUVTXDUHIHHWDQHQJLQHHUHGSODQDGGUHVVLQJ WKH ORWJUDGLQJ VKDOO EHUHTXLUHG 7KHVH W\SHVRI SHUPLWV DUH DGGLWLRQVSRROVVODEVHWF F 3ULRU WR WKH UHOHDVH RI WKH &HUWLILFDWH RI 2FFXSDQF\ &2 RU ILQDO LQVSHFWLRQ ZKHUH QR &2 LV LVVXHG WKH GHYHORSHU RZQHUEXLOGHU VKDOO H[HFXWH WKH $IILGDYLW RI /RW *UDGLQJ DQG )LQLVKHG )ORRU (OHYDWLRQ &RPSOLDQFH SURYLGH DQ DVEXLOW VXUYH\ SUHSDUHG E\ D VXUYH\RU DQG PDSSHU UHJLVWHUHG LQ WKH 6WDWH RI )ORULGD RI WKH ORW DQG WKH GULYHZD\ FRQVWUXFWLRQ DQG UHWXUQVDPHWRWKH&RXQW\$GPLQLVWUDWRURUKLVGHVLJQHH7KH DVEXLOW VXUYH\ VKDOO EH LQ FRQIRUPDQFH ZLWK WKH DSSURYHG 6WRUPZDWHU 0DQDJHPHQW 3ODQ DQG 5HSRUW $Q\ GHYLDWLRQV ZSGDWDOGFUZOGFVWRUPZDWHUPJPWUHTXLUHPHQWV 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ IURPWKHDSSURYHGSODQPXVWEHQRWHGDQGZLOOEHUHYLHZHGIRU FRPSOLDQFHZLWKWKLV&RGH / 6ZDOHV&XOYHUWVDQG3LSHV $OO VZDOHV GLWFKHV FKDQQHOV DQG FORVHG VWRUPGUDLQDJH FRQGXLWV ZLWKLQ VXEGLYLVLRQVVKDOOEHZLWKLQDQHDVHPHQWRUGHGLFDWHGULJKWRIZD\5LJKWRI ZD\ RU PDLQWHQDQFH HDVHPHQWV E\ LQVWUXPHQW RU SODW GHGLFDWLRQ VKDOO EH SURYLGHGIRUDOOIDFLOLWLHVXVHGWRFRQYH\VWRUPZDWHU7KHPLQLPXPZLGWKRI VDLG ULJKWVRIZD\ RU HDVHPHQWV VKDOO FRQIRUP WR WKH ZLGWKV VKRZQ LQ WKH IROORZLQJWDEOH 0LQLPXP &RQWUROOHG:LGWK 6ZDOHVH[FHSWLQ ULJKWRIZD\ • 5HDU<DUG • 6LGH<DUG HDFKVLGHRIVZDOHFHQWHUOLQH 3LSHVDQG&XOYHUWV µ¶HDFKVLGHRISLSHFHQWHUOLQH 6HH)LJXUH 7KHHDVHPHQWUHTXLUHGVKDOOEHWKH JUHDWHURIILIWHHQIHHWRUWKH FRPELQDWLRQRI • WKHRXWVLGHGLDPHWHUVRIWKH FXOYHUWVSOXV • DOOVSDFLQJVEHWZHHQ FXOYHUWVSOXV • ILYHIHHWRQERWKVLGHVRI WKHFXOYHUWVSOXV •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¶VUHVSRQVLELOLW\WRPDNHWKHQHFHVVDU\DUUDQJHPHQWV ZLWK HDFK XWLOLW\ LQ DFFRUGDQFH ZLWK WKH XWLOLW\¶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ò1671XWIDFHVVKDOOEHXQLIRUPDQGVKDOOEHQRWOHVVWKDQ RQHLQFKLQKHLJKW$OOK\GUDQWVVKDOORSHQFRXQWHUFORFNZLVH +RVH DQG 3XPSHU 1R]]OH $OO K\GUDQWV VKDOO KDYH RQH òLQFK SXPSHURXWOHWDQGWZRòLQFKKRVHRXWOHWVDQGDOORXWOHWWKUHDGV VKDOO EH QDWLRQDO VWDQGDUG 2XWOHW FDSV ZLWK JDVNHWV VKDOO EH IXUQLVKHG ZLWK HDFK K\GUDQW 7KH FDS QXW VKDOO EH SHQWDJRQ VKDSH òLQFK167 ZSGDWDOGFUZOGFILUHSURWHFWLRQ 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ +HLJKW DQG 2ULHQWDWLRQ )LUH K\GUDQWV VKDOO EH LQVWDOOHG VR WKDW WKH òLQFK VWHDPHU FRQQHFWLRQ LV QR OHVV WKDQ ILIWHHQ LQFKHV RU PRUHWKDQWZHQW\IRXULQFKHVDERYHWKHILQLVKHGJUDGHDQGVKDOO IDFHWKHVWUHHW &OHDUDQFH 1R REVWUXFWLRQV RU SODQWLQJV VKDOO EH SODFHG WKDW ZLOO UHVWULFW WKH XVH RI K\GUDQWV LQ DFFRUGDQFH ZLWK WKH )ORULGD )LUH 3UHYHQWLRQ&RGH 0DUNLQJV D %OXH UDLVHG SDYHPHQW PDUNLQJV VKDOO EH LQVWDOOHG WR LQGLFDWH WKH ORFDWLRQ RI HDFK ILUH K\GUDQW DQG VKDOO EH LQVWDOOHG LQ DFFRUGDQFH ZLWK VSHFLILFDWLRQV DSSURYHG E\ WKH &RXQW\ (QJLQHHULQJ6HUYLFHV'LUHFWRU E )LUH K\GUDQWV VKDOO EH FODVVLILHG DQG PDUNHG LQ DFFRUGDQFH ZLWK WKH ODWHVW DGRSWHG HGLWLRQ RI WKH 1)3$&RGH 1R $GGLWLRQDOO\ SULYDWHO\ RZQHG K\GUDQWV VKDOO KDYH WKH EDUUHO SDLQWHG UHG DQG WRSV DQG FDSV SDLQWHG LQ DFFRUGDQFH ZLWK 1)3$&RGH1R 0DLQWHQDQFH ,W VKDOO EH WKH UHVSRQVLELOLW\ RI WKH K\GUDQW RZQHU ZKHWKHU RZQHG E\ D XWLOLW\ FRPSDQ\ RU LQGLYLGXDO WR PDLQWDLQ DOO K\GUDQWV LQ JRRG RSHUDEOH FRQGLWLRQ LQFOXGLQJ FOHDUDQFHV KHLJKW DQGPDUNLQJV$Q\K\GUDQWZKLFKLVUHQGHUHGLQRSHUDEOHIRUDSHULRG RIPRUHWKDQWZHQW\IRXUKRXUVVKDOOEHEDJJHGDQGZUDSSHGRU KDYHWKHWRSSDLQWHGVLOYHU ZSGDWDOGFUZOGFILUHSURWHFWLRQ 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ &+$37(5 '(9(/230(1767$1'$5'6 6(&7,21 *5((163$&(5(48,5(0(176$1'67$1'$5'6 1HLJKERUKRRG3DUNV $ ,QWHQWDQG3XUSRVH 7KH LQWHQW DQG SXUSRVH RI WKLV VHFWLRQ LV WR DGYDQFH WKH KHDOWK VDIHW\ DQG ZHOIDUH RI WKH UHVLGHQWV RI WKH &RXQW\ E\ SURYLGLQJ FRPPRQ DUHDV DV QHLJKERUKRRG SDUNV LQ UHVLGHQWLDO GHYHORSPHQW LQ ZKLFK WR HQJDJH LQ UHFUHDWLRQDQGSOD\ % $SSOLFDELOLW\ 7KLV VHFWLRQ VKDOO DSSO\ ZKHUH PRUH WKDQWZHQW\ILYH GZHOOLQJ XQLWV DUH SURSRVHG )RU SXUSRVHV RI WKLV UHTXLUHPHQW D GHYHORSPHQW VKDOO EH DJJUHJDWHGZLWKFRQWLJXRXVRUQHDUE\GHYHORSPHQWVGHYHORSHGE\WKHVDPH RUDUHODWHGGHYHORSHURURZQHUWKDWKDYHQRWSURYLGHGQHLJKERUKRRGSDUNV LQDFFRUGDQFHZLWKWKLVVHFWLRQ )RUWKHSXUSRVHVRIWKLVVHFWLRQDGZHOOLQJXQLWVKDOOFRQVLVWRIVLQJOHIDPLO\ PXOWLSOHIDPLO\DQGPRELOHKRPHV & ([HPSWLRQV 7KLV VHFWLRQ VKDOO QRW DSSO\ WR DQ\ GHYHORSPHQW ZKLFK UHFHLYHG SUHOLPLQDU\ SODQDSSURYDOSULRUWR1RYHPEHUDQ\GHYHORSPHQWZKLFKVXEPLWWHG D FRPSOHWH DSSOLFDWLRQ IRU SUHOLPLQDU\ SODQ DSSURYDO SULRU WR 1RYHPEHU RU DQ\ H[LVWLQJ XQH[SLUHG 38' RU 038' SURMHFW WKDW DV RI 1RYHPEHUUHFHLYHGSUHOLPLQDU\SODQDSSURYDOIRUDWOHDVWHLJKW\ SHUFHQWRIWKH38'RU038'SURMHFW ' 1RW,PSDFW)HH&UHGLWDEOH 7KHSURYLVLRQRIQHLJKERUKRRGSDUNVSXUVXDQWWRWKLVVHFWLRQLVQRWLPSDFW IHHFUHGLWDEOHDJDLQVWDQ\SRUWLRQRIWKHIHHVVHWIRUWKLQ&KDSWHU ( $PRXQWRI/DQG5HTXLUHG 7KHDPRXQWRIODQGUHTXLUHGWREHSURYLGHGDQGPDLQWDLQHGDVQHLJKERUKRRG SDUNVLVDVIROORZV 2QHDFUHIRUWRGZHOOLQJXQLWV $Q DGGLWLRQDO RI RQH DFUH IRU HDFK DGGLWLRQDO GZHOOLQJ XQLW RYHU ZSGDWDOGFUZOGFQHLJKERUKRRGSDUNV 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ ) 1HLJKERUKRRG3DUN6WDQGDUGV 7KH ODQG SURYLGHG IRU XVH DV QHLJKERUKRRG SDUNV VKDOO EH GHYHORSDEOH XSODQGV H[FOXVLYH RI UHTXLUHG VHWEDFNV IURP ZHWODQG RU HQYLURQPHQWDO DUHDV DQG VKDOO QRW FRQWDLQ DQ\ UHVWULFWLRQV RU HQFXPEUDQFHVWKDWSUHYHQWLWVXVHDVDQHLJKERUKRRGSDUN D &OXEKRXVHV E )ORRGSODLQPLWLJDWLRQDUHDV F 'UDLQDJHVWRUPZDWHU GHWHQWLRQ DUHDV H[FHSW IRU GUDLQDJHVWRUPZDWHU GHWHQWLRQ DUHDV XVHG VROHO\ IRU UHTXLUHG QHLJKERUKRRGSDUNDPHQLWLHV G 3DUNLQJ DUHDV H[FHSW IRU SDUNLQJ DUHDV UHTXLUHG WR VDWLVI\ PLQLPXPSDUNLQJUHTXLUHPHQWVIRUUHTXLUHGQHLJKERUKRRGSDUN DPHQLWLHV H /DQGVFDSHHDVHPHQWVDQG I 6LGHZDONVDQGELNHPXOWLPRGDOSDWKVFRQVWUXFWHGWRVDWLVI\WKH PLQLPXPUHTXLUHPHQWVRIWKLV&RGH $FFHVVLELOLW\ 7KH ODQG SURYLGHG IRU HDFK QHLJKERUKRRG SDUN VKDOO EH HDVLO\ DFFHVVLEOH WR WKH UHVLGHQWV RI WKH GHYHORSPHQW E\ DXWRPRELOH IRRW DQGELF\FOH 8VHV3URKLELWHG 7KHIROORZLQJ XVHVODQG DUHDV VKDOO QRW EH LQFOXGHG LQ WKH UHTXLUHG QHLJKERUKRRGSDUNVDFUHDJH 7\SHRI/DQG 7KHUHTXLUHGQHLJKERUKRRGSDUNDFUHDJHVKDOOEHORFDWHGQRJUHDWHU WKDQ RQHKDOIPLOH IURP ILIW\ SHUFHQW RI WKH GZHOOLQJ XQLWV WR EH VHUYHGE\WKHQHLJKERUKRRGSDUNRUQRJUHDWHUWKDQRQHTXDUWHUPLOH IURP ILIW\ SHUFHQW RI WKH GZHOOLQJ XQLWV WR EH VHUYHG E\ WKH QHLJKERUKRRG SDUN LI WKH QHLJKERUKRRG SDUN LV VHSDUDWHG IURP WKH GHYHORSPHQWE\DFROOHFWRURUDUWHULDOURDGZD\ 8VHV:LWKLQ1HLJKERUKRRG3DUNV 1HLJKERUKRRGSDUNVPD\LQFOXGHEXWDUHQRWOLPLWHGWRVSRUWVILHOGV WHQQLV FRXUWV EDVNHWEDOO FRXUWV KLNLQJ DQG ELNLQJ WUDLOV FRPPXQLW\ SRROV SOD\JURXQGV DQG RWKHU DUHDV ZKHUH PHPEHUV RI WKH GHYHORSPHQWPD\FRQJUHJDWHIRUUHFUHDWLRQDOXVHV ZSGDWDOGFUZOGFQHLJKERUKRRGSDUNV 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ D %HVHWEDFNDPLQLPXPRIILIW\IHHWIURPZHWODQGVODNHV RURWKHUZDWHUERGLHVRUVHSDUDWHGIURPDOOZHWODQGVODNHVRU RWKHUZDWHUERGLHVE\DWUDQVSDUHQWIHQFHRUODQGVFDSHEXIIHU IRXUIHHWLQKHLJKWDQG E +DYHDPLQLPXPZLGWKRIIHHWDQGOHQJWKRIIHHW 0LQLPXP6L]H 0LQLPXP'LPHQVLRQ 7KH UHTXLUHG QHLJKERUKRRG SDUN DFUHDJH VKDOO KDYH D PLQLPXP GLPHQVLRQ RI WKLUW\ IHHW $V QRWHG DERYH WKH RSHQ SOD\ DUHD VKDOOEHDPLQLPXPRIIHHW;IHHW 7ZHQW\ILYHSHUFHQWRIWKHUHTXLUHGQHLJKERUKRRGSDUNDFUHDJH EXW QRW OHVV WKDQ RQHKDOIDFUH RI HDFK UHTXLUHG QHLJKERUKRRG SDUN VKDOO FRQVLVW RI DQ XQSDYHG RSHQSOD\ DUHD ZLWKRXW WUHHV DQG VWUXFWXUHV WKDW LPSDLU RSHQ SOD\ 7KH UHTXLUHG XQSDYHG RSHQSOD\ DUHDSRUWLRQRIWKHQHLJKERUKRRGSDUNVPXVW 7KH UHTXLUHG QHLJKERUKRRG SDUN DFUHDJH PD\ EH FRPSRVHG RI D VLQJOH RU PXOWLSOH QHLJKERUKRRG SDUNV KRZHYHU HDFK UHTXLUHG QHLJKERUKRRGSDUNVKDOOEHDPLQLPXPRIRQHDFUHLQVL]H 2SHQ3OD\$UHD5HTXLUHG (TXLSPHQW ,I WKH QHLJKERUKRRG SDUN LQFOXGHV SOD\JURXQG RU RWKHU UHFUHDWLRQDO HTXLSPHQWVXFKHTXLSPHQWVKDOOFRPSO\ZLWKDOODSSOLFDEOH$PHULFDQ 6RFLHW\IRU7HVWLQJDQG0DWHULDOV$670$PHULFDQVZLWK'LVDELOLWLHV $FWDQG&RQVXPHU3URGXFWV6DIHW\&RPPLVVLRQVWDQGDUGV * 1HLJKERUKRRG3DUN0DLQWHQDQFH 7KHGHYHORSHURIDGHYHORSPHQWWKDWLQFOXGHVWKHQHLJKERUKRRGSDUNVKDOOEH UHTXLUHG WR PDLQWDLQ DQG SD\ WD[HV RQ WKH QHLJKERUKRRG SDUNV DW QR H[SHQVH WR WKH &RXQW\ RU FRQYH\ VXFK SDUNV WR D QRQSURILW KRPHRZQHUV DVVRFLDWLRQ FRPPXQLW\ GHYHORSPHQW GLVWULFW RU RSHQ VSDFH WUXVW 1HLJKERUKRRGSDUNVPXVWEHFRQWLQXRXVO\PDLQWDLQHGLQDVDIHPDQQHUDQG FRQVLVWHQWZLWKVDIHW\VWDQGDUGVHVWDEOLVKHGE\WKH&RQVXPHU3URGXFW6DIHW\ &RPPLVVLRQ DQG $670 ,I D KRPHRZQHUV DVVRFLDWLRQ FRPPXQLW\ GHYHORSPHQW GLVWULFW RU RSHQ VSDFH WUXVW LV IRUPHG WKH GHYHORSHU VKDOO SURYLGH GRFXPHQWDWLRQ DFFHSWDEOH WR WKH &RXQW\ GHPRQVWUDWLQJ WKDW VXFK RUJDQL]DWLRQLVJRYHUQHGDFFRUGLQJWRWKHIROORZLQJ ZSGDWDOGFUZOGFQHLJKERUKRRGSDUNV 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ 7KH RUJDQL]DWLRQ LV RUJDQL]HG E\ WKH GHYHORSHU DQG RSHUDWLQJ ZLWK ILQDQFLDOVXEVLGL]DWLRQE\WKHGHYHORSHULIQHFHVVDU\EHIRUHWKHVDOH RIDQ\ORWVZLWKLQWKHGHYHORSPHQW 0HPEHUVKLS LQ WKH RUJDQL]DWLRQ LV PDQGDWRU\ IRU DOO SXUFKDVHUV RI GZHOOLQJXQLWVWKHUHLQDQGWKHLUVXFFHVVRUV 7KH RUJDQL]DWLRQ VKDOO EH UHVSRQVLEOH IRU PDLQWHQDQFH RI DQG LQVXUDQFHDQGWD[HVRQWKHQHLJKERUKRRGSDUNV 7KH PHPEHUV RI WKH RUJDQL]DWLRQ VKDOO VKDUH HTXLWDEO\ WKH FRVWV RI PDLQWDLQLQJDQGGHYHORSLQJQHLJKERUKRRGSDUNVLQDFFRUGDQFHZLWK SURFHGXUHVHVWDEOLVKHGE\WKHP 7KH RUJDQL]DWLRQ VKDOO KDYH RU KLUH DGHTXDWH VWDII WR PDLQWDLQ WKH QHLJKERUKRRGSDUNV ,QWKHHYHQWWKDWWKHRUJDQL]DWLRQHVWDEOLVKHGWRRZQDQGPDLQWDLQWKH QHLJKERUKRRGSDUNVRUDQ\VXFFHVVRURUJDQL]DWLRQVKDOODWDQ\WLPH IDLO WR PDLQWDLQ WKH QHLJKERUKRRG SDUNV LQ UHDVRQDEOH RUGHU DQG FRQGLWLRQWKH&RXQW\PD\VHUYHZULWWHQQRWLFHXSRQVXFKRUJDQL]DWLRQ DQG XSRQ WKH UHVLGHQWV DQG RZQHUV RI WKH GHYHORSPHQW VHWWLQJ IRUWK WKH PDQQHU LQ ZKLFK WKH RUJDQL]DWLRQ KDV IDLOHG WR PDLQWDLQ WKH QHLJKERUKRRG SDUNV LQ UHDVRQDEOH FRQGLWLRQ 7KH VDLG QRWLFH VKDOO LQFOXGH D GHPDQG WKDW VXFK GHILFLHQFLHV RI PDLQWHQDQFH EH FXUHG ZLWKLQ WKLUW\ GD\V WKHUHRI ,I WKH GHILFLHQFLHV VHW IRUWK LQ WKH RULJLQDOQRWLFHVKDOOQRWEHFXUHGZLWKLQWKHVDLGWKLUW\GD\VRUDQ\ H[WHQVLRQWKHUHRIWKH&RXQW\LQRUGHUWRSUHVHUYHWKHWD[DEOHYDOXHV RI WKH SURSHUWLHV ZLWKLQ WKH GHYHORSPHQW DQG WR SUHYHQW WKH QHLJKERUKRRG SDUNV IURP EHFRPLQJ D SXEOLF QXLVDQFH PD\ XSRQ DSSURYDOE\WKH%RDUGRI&RXQW\&RPPLVVLRQHUVDWDSXEOLFKHDULQJ HQWHUXSRQWKHVDLGQHLJKERUKRRGSDUNVDQGPDLQWDLQWKHVDPHIRU DQ\GXUDWLRQGHHPHGDSSURSULDWHE\WKH&RXQW\7KHVDLGHQWU\DQG PDLQWHQDQFH VKDOO QRW YHVW LQ WKH SXEOLF DQ\ ULJKWV WR XVH WKH QHLJKERUKRRG SDUNV DQG VKDOO QRW FDXVH WKH &RXQW\ WR LQFXU DQ\ OLDELOLWLHV RU REOLJDWLRQV UHODWHG WR VXFK QHLJKERUKRRG SDUNV 7KH FRVWRIVXFKPDLQWHQDQFHE\WKH&RXQW\WRJHWKHUZLWKWKHFRVWRIDQ LQVXUDQFH SROLF\ FRYHULQJ VXFK PDLQWHQDQFH ZLWK WKH &RXQW\ DV D QDPHG LQVXUHG VKDOO EH DVVHVVHG UDWDEO\ DJDLQVW WKH SURSHUWLHV ZLWKLQ WKH GHYHORSPHQW WKDW KDYH D ULJKW RI HQMR\PHQW RI WKH QHLJKERUKRRG SDUNV DQG VKDOO EHFRPH D WD[ OLHQ RQ WKH VDLG SURSHUWLHV 7KH &RXQW\ DW WKH WLPH RI HQWHULQJ XSRQ WKH VDLG QHLJKERUKRRG SDUNV IRU WKH SXUSRVH RI PDLQWHQDQFH VKDOO ILOH D QRWLFH RI VXFK OLHQ LQ WKH 2IILFH RI WKH &OHUN DQG &RPSWUROOHU RI WKH FRXQW\ XSRQ WKH SURSHUWLHV DIIHFWHG E\ VXFK OLHQ ZLWKLQ WKH GHYHORSPHQW 1RWZLWKVWDQGLQJ WKH IRUHJRLQJ WKH &RXQW\ VKDOO EH XQGHU QR REOLJDWLRQ WR PDLQWDLQ DQ\ QHLJKERUKRRG SDUN DQG QRWKLQJ KHUHLQ VKDOO SUHFOXGH WKH &RXQW\ IURP H[HUFLVLQJ DQ\ RWKHU DYDLODEOH OHJDOUHPHG\IRUWKHIDLOXUHWRPDLQWDLQQHLJKERUKRRGSDUNV ZSGDWDOGFUZOGFQHLJKERUKRRGSDUNV 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ + $OWHUQDWLYH6WDQGDUGV $OWHUQDWLYH VWDQGDUGV WKDW PHHW RU H[FHHG WKH LQWHQW DQG SXUSRVH RI WKLV VHFWLRQPD\EHDSSURYHG ZSGDWDOGFUZOGFQHLJKERUKRRGSDUNV 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ &+$37(5 '(9(/230(1767$1'$5'6 6(&7,21 *5((163$&(5(48,5(0(176$1'67$1'$5'6 /DQGVFDSLQJDQG%XIIHULQJ $ ,QWHQWDQG3XUSRVH ,W LV WKH LQWHQW DQG SXUSRVH RI WKLV VXEVHFWLRQWR SURPRWH WKH KHDOWK VDIHW\ DQG JHQHUDO ZHOIDUH RI WKH FXUUHQW DQG IXWXUH UHVLGHQWV RI WKH &RXQW\ E\ HVWDEOLVKLQJ PLQLPXP VWDQGDUGV IRU WKH SUHVHUYDWLRQ GHYHORSPHQW LQVWDOODWLRQDQGPDLQWHQDQFHRIQDWLYHDQGZDWHUHIILFLHQWODQGVFDSLQJZLWKLQ WKH&RXQW\/DQGVFDSLQJLQFOXGHVWUHHVVKUXEVDQGJURXQGFRYHU 7KH XVH RI SODQW PDWHULDOV LPSURYHV WKH DHVWKHWLF DSSHDUDQFH RI SXEOLF FRPPHUFLDOLQGXVWULDODQGUHVLGHQWLDODUHDVE\UHGXFLQJWKHYLVXDOLPSDFWRI ODUJHEXLOGLQJPDVVHVE\VRIWHQLQJWKHYLVXDOLPSDFWRISDYHGVXUIDFHVDQG YHKLFXODUXVH DUHDV E\ VFUHHQLQJ FRQIOLFWLQJ XVHV IURP RQH DQRWKHU DQG RWKHUZLVH KHOSLQJ HVWDEOLVK D KDUPRQLRXV UHODWLRQVKLS EHWZHHQ WKH QDWXUDO DQGEXLOWHQYLURQPHQW % $SSOLFDELOLW\ 7KLVVHFWLRQVKDOOEHDSSOLFDEOHWRDOOGHYHORSPHQWSODQVVXEPLWWHGRQ RUDIWHU)HEUXDU\DQGWRVLQJOHDQGWZRIDPLO\UHVLGHQWLDO ORWVZLWKWKHH[FHSWLRQRIWKRVHZLWKLQDJULFXOWXUDO]RQLQJGLVWULFWV 5HGHYHORSPHQW /DQGVFDSLQJ 'HYHORSPHQWV WKDW H[LVWHG RQ )HEUXDU\ WKDW GR QRW FRPSO\ ZLWK WKH SURYLVLRQV RI WKLV VXEVHFWLRQ VKDOO EH EURXJKW LQWR FRPSOLDQFH ZKHQ D QHZ EXLOGLQJ SHUPLWRUSUHOLPLQDU\VLWHSODQDSSOLFDWLRQLVVXEPLWWHGSXUVXDQWWRWKLV &RGHDFFRUGLQJWRWKHIROORZLQJ D ,QWHQWDQG3XUSRVH 7KH LQWHQW DQG SXUSRVH RI WKLV VHFWLRQ LV WR SURYLGH IRU WKH WLPHO\ FRPSOLDQFH ZLWK WKH ODQGVFDSLQJ DQG EXIIHULQJ SURYLVLRQV RI WKLV &RGH ZKLOH UHFRJQL]LQJ DQG HQFRXUDJLQJ UHGHYHORSPHQW $V VXFK WKH UHTXLUHPHQW IRU EULQJLQJ D VLWH LQWRFRQIRUPDQFHZLWKWKLVVHFWLRQZLOOEHEDVHGRQWKHGHJUHH RILQYHVWPHQWSURSRVHGIRUWKHVLWH E ,PSURYHPHQWV5HTXLUHG /DQGVFDSLQJ DQG EXIIHULQJ UHTXLUHPHQWV LQ FLUFXPVWDQFHV RI UHGHYHORSPHQWVKDOOEHDVVKRZQLQ7DEOH$ ZSGDWDOGFUZOGFODQGVFDSLQJEXIIHULQJ 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ 7$%/($ &LUFXPVWDQFH • $OWHUDWLRQRIYHKLFXODUXVHDUHD RWKHUWKDQUHVWULSLQJUHVHDOLQJ RUUHVXUIDFLQJ • ([LVWLQJVWUXFWXUHVL]HLV H[SDQGHGE\XSWRWZHQW\ILYH SHUFHQW • 6WUXFWXUHVL]HLVH[SDQGHGE\ PRUHWKDQWZHQW\ILYH SHUFHQW • 9DOXHRIZRUNDVVRFLDWHGZLWK UHGHYHORSHGUHPRGHOHGRU UHQRYDWHGVWUXFWXUHLVEHWZHHQ WZHQW\ILYHDQGILIW\ SHUFHQWRIWKHDSSUDLVHGYDOXH &RQIRUPLW\5HTXLUHG • ([SDQGHGDUHDVKDOOSURYLGHWKH UHTXLUHGPLQLPXPODQGVFDSHDUHDDV UHTXLUHGE\7DEOH& • %XLOGLQJSHULPHWHUODQGVFDSLQJVKDOO EHUHTXLUHGDGMDFHQWWRDQ\DGGLWLRQ ZKHUHIHDVLEOH • %XLOGLQJSHULPHWHUODQGVFDSLQJVKDOO EHLQVWDOOHGDGMDFHQWWRWKHHQWLUH EXLOGLQJZKHUHIHDVLEOH • %XIIHUVVKDOOEHLQVWDOOHG R $ORQJURDGZD\V R $GMDFHQWWRUHVLGHQWLDO SURSHUWLHV • %XLOGLQJSHULPHWHUODQGVFDSLQJ DGMDFHQWWRDGGLWLRQ • $OOSURSHUW\EXIIHUVVKDOOEHLQVWDOOHG • %XLOGLQJSHULPHWHUODQGVFDSLQJ DGMDFHQWWRDGGLWLRQZKHUHIHDVLEOH • 9DOXHRIZRUNLVEHWZHHQ ILIW\RQHDQGVHYHQW\ILYH SHUFHQWRIWKHDSSUDLVHG YDOXH • $OOSURSHUW\EXIIHUV • 9DOXHRIZRUNH[FHHGVVHYHQW\ ILYHSHUFHQWRIWKHDSSUDLVHG • $OOEXLOGLQJSHULPHWHUODQGVFDSLQJ YDOXH ZKHUHSRVVLEOH •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¶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• 7\SH% 6LQJOHURZRIWUHHVPD[LPXPVL[W\IHHWRQFHQWHU 9LVXDOVFUHHQGHVLJQHGWREHHLJKW\SHUFHQWRSDTXHZLWKLQRQH \HDU 6FUHHQLQJ D PLQLPXP RI VL[ IHHW LQ KHLJKW DW WKH WLPH RI WKH LQVWDOODWLRQ 6FUHHQLQJVKDOOLQFOXGHRQHRUPRUHRIWKHIROORZLQJ • 2SDTXH)HQFH • :DOO • %HUP •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• 2SDTXH)HQFH • :DOO • %HUP • +HGJH :RRGHQIHQFHVDUHSURKLELWHG )HQFHVDQGZDOOVVKDOOQRWH[FHHGHLJKWIHHWLQKHLJKWDQGPD\EH SODFHGDGMDFHQWWRWKHSURSHUW\OLQH 6KUXEV XVHG WR SURYLGH D YLVXDO VFUHHQ VKDOO EH SODFHG D PD[LPXP ILYHIHHWRQFHQWHU /DQGVFDSHEXIIHUVKDOOEHUHTXLUHG • $GMDFHQWWRDQ\URDGULJKWRIZD\H[WHUQDOWRWKH GHYHORSPHQW • $GMDFHQWWRDQ\QRQORFDODFFHVVURDGVLQWHUQDOWRD GHYHORSPHQW • $GMDFHQWWRDOOGRXEOHIURQWDJHORWV 7KHPLQLPXPZLGWKZLOOYDU\DFFRUGLQJWRWKHXOWLPDWHZLGWKRI DEXWWLQJULJKWRIZD\DQGSURMHFWVL]HDVIROORZV %XIIHU5HTXLUHG 5LJKWRI:D\:LGWK )HHW )HHW RU0RUH )HHW $FUHVRU/DUJHU3URMHFW 5HJDUGOHVVRI5LJKWRI:D\:LGWK )HHW :KHQ D FRUULGRU ULJKWRIZD\ LV GHGLFDWHG LQ DFFRUGDQFH ZLWK WKLV &RGH WKH 7\SH' EXIIHU ZLGWK PD\ EH UHGXFHG WR QR OHVV WKDQ WHQ IHHW DV SDUW RI SODQ UHYLHZ SURYLGHG WKH SXUSRVH DQG LQWHQW RI WKLVVHFWLRQDUHPHW 6KDGHDQGXQGHUVWRU\WUHHVVKDOOEHSODQWHGDQDYHUDJHRIWKLUW\ IHHW DSDUW 0LQLPXP VSDFLQJ WZHQW\ IHHW PD[LPXP IRUW\ILYH IHHW ZSGDWDOGFUZOGFODQGVFDSLQJEXIIHULQJ 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ 7KH UHPDLQGHU RI WKH EXIIHU VKDOO EH ODQGVFDSHG ZLWK VKUXEV DW D PLQLPXP UDWH RI ILYH VKUXEV SHU WUHH RU SDOP DQG JURXQG FRYHU SODQWV :KHUH D YHKLFXODU XVH DUHD DEXWVWKH ULJKWRIZD\ EXIIHUWKH EXIIHU VKDOO DOVR FRQWDLQ DQ HDUWKHQ EHUP D PLQLPXP RI HLJKWHHQ LQFKHV LQ KHLJKW VKDOO EH SODQWHG VR DV WR IRUP D FRQWLQXRXV XQEURNHQVROLGYLVXDOVFUHHQZLWKLQRQH\HDURIWLPHRISODQWLQJ DQGJURXQGFRYHUSODQWV %HUPVDQGODQGVFDSLQJVKDOOEHHLJKW\SHUFHQWRSDTXHDQGVKDOO EHDPLQLPXPRIWKUHHIHHWLQKHLJKWDWWKHWLPHRISODQWLQJDQGDOO WLPHVWKHUHDIWHU %HUPPD\EHXQGXODWLQJWRDOORZWUHHSODFHPHQWDQGSURPRWHYLVXDO LQWHUHVW %HUPVKDOOQRWEHUHTXLUHGZLWKLQFOHDUVLJKWWULDQJOHDUHD 1RPRUHWKDQWKLUW\SHUFHQWRIWKHUHTXLUHGODQGVFDSHDUHDVKDOO EHJUDVVHG :RRGHQIHQFHVVKDOOEHSURKLELWHG :KHUHDZDOOLVXVHG • 7KHPDVRQU\RURWKHURUQDPHQWDOZDOOQRWWRH[FHHGHLJKW IHHWLQKHLJKWPD\EHORFDWHGZLWKLQDUHTXLUHG7\SH'EXIIHU ULJKWRIZD\ EXIIHU WR VHSDUDWH D UHVLGHQWLDO GHYHORSPHQW IURPWKHURDGZD\ • 7KHPDVRQU\RURWKHURUQDPHQWDOZDOOVKDOOEHLQVWDOOHGVRDV WR DOORZ WKH UHTXLUHG ODQGVFDSLQJ WR EH SURYLGHG DORQJ WKH ULJKWRIZD\VLGHRIWKHZDOO • $Q\ VLGHZDON ORFDWHG DGMDFHQW WR WKH VDLG PDVRQU\ RU RWKHU RUQDPHQWDOZDOOVKDOOEHVHSDUDWHGIURPWKHPDVRQU\RURWKHU RUQDPHQWDO ZDOO E\ D VLQJOH URZ RI WUHHV VSDFHG WKLUW\ IHHWRQFHQWHU • 7KH WUHHV VKDOO EH SODQWHG VR DV WR SURYLGH VKDGH DORQJ WKH VLGHZDON9LQHVDQGJURXQGFRYHUPD\DOVREHLQFRUSRUDWHG LQWRWKHODQGVFDSLQJ,WLVQRWWKHLQWHQWRIWKLVUHTXLUHPHQWWR REVFXUH IURP YLHZ GHFRUDWLYH HOHPHQWV VXFK DV HPEOHPV WLOHPROGLQJDQGZURXJKWLURQ ZSGDWDOGFUZOGFODQGVFDSLQJEXIIHULQJ 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ 7\SH(,QGXVWULDOWR ,QGXVWULDO 7\SH)&RQWUROOHG $FFHVV5RDGZD\V )LYHIRRWZLGHEXIIHU 6KDGH WUHHV SODQWHG D PD[LPXP RI VL[W\ IHHW RQ FHQWHU 1R VXEVWLWXWLRQRISDOPVLVSHUPLWWHG :KHQ WKH LQGXVWULDO XVHV DUH DGMDFHQW VXFK DVVKDULQJ RI VLGH\DUG OLQHWKHEXIIHULVRQO\UHTXLUHGWRH[WHQGIURPWKHIURQWSURSHUW\OLQH WRWKDWSRLQWSDUDOOHOWRWKHIURQWEXLOGLQJOLQH $FRQWLQXRXVURZRIHYHUJUHHQVKUXEV 7KH UHPDLQGHU VKDOO EH ODQGVFDSHG ZLWK RWKHU SODQWLQJV DQGRU GURXJKWWROHUDQWVRG 7ZHQW\IHHWDGMDFHQWWRDQ\FRQWUROOHGDFFHVVURDGZD\ ,QUHVLGHQWLDOGLVWULFWV • $ VRXQG ZDOO D PLQLPXP RI WHQ IHHW KLJK ZKHQ WKH FORVHVW UHVLGHQWLDO ORW RU SRWHQWLDO ORW LV ZLWKLQ IHHW RI WKH FRQWUROOHGDFFHVVKLJKZD\ • :KHQ D UHVLGHQWLDO ORW RU SRWHQWLDO ORW LV PRUH WKDQ IHHW IURP D KLJKZD\ D ZDOO D PLQLPXP RI HLJKW IHHW KLJK LV UHTXLUHG • 0DVRQU\ RU RWKHU RUQDPHQWDO ZDOOV VKDOO EH XVHG :RRGHQ DQGSODVWLFW\SHIHQFHVLQFOXGLQJ39&DUHSURKLELWHG • :DOOVPD\EHSODFHGDWRSEHUPVWRDFKLHYHPLQLPXPKHLJKW • :DOOV VKDOO EH LQVWDOOHG WR DOORZ UHTXLUHG ODQGVFDSLQJ WR EH SURYLGHGRQWKHULJKWRIZD\VLGHRIWKHZDOOV ,QDOORWKHUGLVWULFWV • 6KUXEV XQGXODWLQJ EHUPV ZDOOV RU DQ\ FRPELQDWLRQ D PLQLPXPRIHLJKWIHHWKLJK • 6KUXEV XVHG DV D YLVXDO VFUHHQ VKDOO EH HLJKW\ SHUFHQW RSDTXHZLWKLQRQH\HDU • 0DVRQU\ RU RWKHU RUQDPHQWDO ZDOOV VKDOO EH XVHG :RRGHQ DQGSODVWLFW\SHIHQFHVLQFOXGLQJ39&DUHSURKLELWHG • :DOOPD\EHSODFHGDWRSEHUPVWRDFKLHYHPLQLPXPKHLJKW • :DOOV VKDOO EH LQVWDOOHG WR DOORZ UHTXLUHG ODQGVFDSLQJ WR EH SURYLGHGRQWKHULJKWRIZD\VLGHRIWKHZDOOV ZSGDWDOGFUZOGFODQGVFDSLQJEXIIHULQJ 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ 6FHQLF+LJKZD\V 7\SH*6HUYLFH 6WDWLRQVDQG &RQYHQLHQFH6WRUHV ZLWK*DV3XPSV • 7KLV UHTXLUHPHQW VKDOO QRW DSSO\ WR WKRVH SRUWLRQV RI WKH SHULPHWHU ZKHUH H[LVWLQJ ZHWODQGV DGMDFHQW WR WKH FRQWUROOHG DFFHVVURDGZD\DUHWREHUHWDLQHGRQVLWH • )RU FRUSRUDWH EXVLQHVV SDUNV WKLV UHTXLUHPHQW VKDOO RQO\ DSSO\ WR WKRVH SRUWLRQV RI WKH SDUN¶V YHKLFXODU XVH DUHDV DGMDFHQWWRWKHFRQWUROOHGDFFHVVURDGZD\ULJKWVRIZD\ 5HTXLUHG/DQGVFDSLQJ • 5RZRIWUHHVPD[LPXPVL[W\IHHWRQFHQWHU • 0LQLPXPILYHVKUXEVSHUWUHHRUSDOP • 6KUXEVPD\EHLQJURXSVRUKHGJHURZV •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• 0LQLPXPWZHQW\IRXULQFKKLJKHDUWKHQEHUP • 0D[LPXPVORSH • (QWLUHOHQJWKRIEXIIHU • %HUP PD\ XQGXODWH WR DOORZ WUHH VSDFLQJ DQG SURYLGH YLVXDO LQWHUHVW ZSGDWDOGFUZOGFODQGVFDSLQJEXIIHULQJ 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ • 6KUXEV VKDOO EH SODQWHG LQ VWDJJHUHG GRXEOH URZV DQG PDLQWDLQHG WR IRUP D FRQWLQXRXV XQEURNHQ VROLG YLVXDO VFUHHQZLWKLQRQH\HDUIURPSODQWLQJ • %HUPV VKDOO EH SODQWHG ZLWK JURXQG FRYHU SODQWV VKUXEV WUHHVDQGSDOPV • %HUPV DQG ODQGVFDSLQJ VKDOO EH HLJKW\ SHUFHQW RSDTXH DQG VKDOO EH D PLQLPXP RI WKUHH IHHW KLJK DW WKH WLPH RI LQVWDOODWLRQDQGVKDOOEHPDLQWDLQHGDWOHDVWDWWKDWKHLJKW • +HLJKW VKDOO EH PHDVXUHG DW ILQLVKHG JUDGH RI YHKLFXODU XVH DUHD •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¶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¶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¶V H\H ZKHQYLHZHGIURPQRUPDOYLHZV 7KHZLUHOHVVIDFLOLW\LVLQWKHQRUPDOYLHZRIDSHUVRQLQ DPRYLQJYHKLFOHIRUPRUHWKDQDVKRUWSHULRGRIWLPH 7KHZLUHOHVVIDFLOLW\LVWREHOLJKWHGDQGLQDQDUHDZLWK IHZRUQRRWKHUOLJKWV 7KHZLUHOHVVIDFLOLW\LVUHDGLO\LGHQWLILDEOHDVDZLUHOHVV IDFLOLW\E\WKHDYHUDJHYLHZHU 7KH ZLUHOHVV IDFLOLW\ ZKHQ YLHZHG IURP QRUPDO YLHZV DSSHDUVRXWRISODFHLQWKHDUHD 7KHUH LV DQ DEVHQFH RI H[LVWLQJ YLVXDO LPSDFW IURP RWKHUXVHVLQWKHDUHDVXUURXQGLQJWKHZLUHOHVVIDFLOLW\ 7KHUHLVDQDEVHQFHRIYHJHWDWLRQVWUXFWXUHVRURWKHU VFUHHQLQJ EHWZHHQ WKH ZLUHOHVV IDFLOLW\ DQG QRUPDO YLHZV 7KH VFDOH KHLJKW DQG EXON RI WKH ZLUHOHVV IDFLOLW\ LV VLJQLILFDQWO\JUHDWHUWKDQRWKHUXVHVH[LVWLQJRUDOORZHG LQWKHVXUURXQGLQJDUHD 7KHIDFLOLW\LVSURSRVHGLQDQDUHDYLVXDOO\SURWHFWHGE\ DGRSWHG YLHZ SURWHFWLRQ FRUULGRUV RU JHQHUDOO\ DSSOLFDEOH DHVWKHWLF UHJXODWLRQV WKDW KHLJKWHQ WKH SURWHFWLRQRIWKHRYHUDOODHVWKHWLFVRIWKHDUHD $ODUJHDPRXQWRIWKHDYDLODEOHYLHZLVRFFXSLHGE\WKH ZLUHOHVVIDFLOLW\UHODWLYHWRDOODYDLODEOHYLHZV 1RUPDO YLHZV DV XVHG LQ WKLV VXEVHFWLRQ PHDQV YLHZV IURP ZKHUHDSHUVRQZRXOGQRUPDOO\EHSUHVHQWDQGEHDEOHWRVHH WKH IDFLOLW\ DV ZHOO DV WKH DUHD RI YLHZ LQ WKH QRUPDO YLHZ RI WKHDYHUDJHSHUVRQ$UHDRIYLHZLVPHDVXUHGDVWKHDUHDXS WR ILIWHHQ GHJUHHV DERYH WKH KRUL]RQ DQG WKLUW\ GHJUHHVOHIWDQGWKLUW\GHJUHHVULJKWRIDIRUZDUGYLHZ ZSGDWDOGFUZOGFZLUHOHVVIDFLOLWLHV 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ & E 7KH ORFDWLRQ RI D SURSRVHG ZLUHOHVV IDFLOLW\ VKDOO PLQLPL]H HQYLURQPHQWDO LPSDFWV *URXQGPRXQWHG ZLUHOHVV IDFLOLWLHV VKRXOG QRW EH ORFDWHG LQ SUHVHUYDWLRQ DUHDV RU FRQVHUYDWLRQ DUHDV F /LJKWHGWRZHUVXVLQJJX\ ZLUHVDUHSURKLELWHGLQFRQVHUYDWLRQ DUHDVDVGHILQHGE\WKLV&RGHDQGWKH&RPSUHKHQVLYH3ODQ 'HVLJQ6WDQGDUGV $OO7LHU7KUHHZLUHOHVVIDFLOLWLHVVKRXOGEHGHVLJQHGLQVXFKDZD\WRPLQLPL]H WKH DGYHUVH YLVXDO LPSDFW RQ WKH VXUURXQGLQJ DUHD 7KLV PD\ LQFOXGH UHGXFLQJWKHKHLJKWDQGVLOKRXHWWHLQRUGHUWRFUHDWHWKHOHDVWDGYHUVHYLVXDO LPSDFW 7KHPLQLPXP KHLJKW QHFHVVDU\ WR SURYLGH WKH DSSOLFDQW¶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²'HPRQVWUDWLRQ RI 1R &ROORFDWLRQ 2SSRUWXQLWLHV 7LHU7ZR DQG 7LHU7KUHH5HYLHZ $QHZWRZHUVKDOOQRWEHDSSURYHGXQOHVVWKHDSSOLFDQWFDQGHPRQVWUDWHQR DSSURYHGEXWXQEXLOWWRZHUVZLWKLQIHHWRIWKHSURSRVHGWRZHUDQGQR H[LVWLQJ WRZHUV RU RWKHU VWUXFWXUHV ZLWKLQ WKH FRPPXQLFDWLRQV SURYLGHU DSSOLFDQW VFRDSSOLFDQW¶V VHDUFK ULQJ DUH UHDVRQDEO\ DYDLODEOH IRU WKH FRPPXQLFDWLRQV SURYLGHU¶V DQWHQQDV WR SURYLGH WKH FRPPXQLFDWLRQV SURYLGHU¶V GHVLJQHG VHUYLFH )DFWRUVWR EH FRQVLGHUHG E\ WKH &RXQW\ LQ WKH GHWHUPLQDWLRQLQFOXGHRQHRUPRUHRIWKHIROORZLQJ 7KH SURSRVHG DQWHQQDV ZRXOG H[FHHG WKH VWUXFWXUDO FDSDFLW\ RI WKH H[LVWLQJWRZHUVWUXFWXUHDQGLWFDQQRWEHUHLQIRUFHGWRDFFRPPRGDWH WKHSURSRVHGDQWHQQDVDWDUHDVRQDEOHFRVW 7KH XQEXLOWWRZHU RU H[LVWLQJ WRZHUVWUXFWXUH GRHV QRW KDYH DYDLODEOH RU VXIILFLHQW VSDFH IRU WKH SURSRVHG DQWHQQDV VR DV WR SURYLGH WKH ZSGDWDOGFUZOGFZLUHOHVVIDFLOLWLHV 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ FRPPXQLFDWLRQV SURYLGHU¶V GHVLJQHG VHUYLFH DQG FDQQRW EH UHDSSURYHGRUUHSODFHGDWDUHDVRQDEOHFRVW 7KH KHLJKW RI WKH DYDLODEOH VSDFH RQ WKH XQEXLOW WRZHU RU H[LVWLQJ WRZHUVWUXFWXUH LV QRW VXIILFLHQWO\ WDOO WR SURYLGH WKH FRPPXQLFDWLRQV SURYLGHU¶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¶VFRVWVRIXVLQJWKHXQEXLOWWRZHURUH[LVWLQJWRZHUVWUXFWXUHH[FHHG ZKDW ZRXOG EH DOO RI WKH DSSOLFDQW¶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¶VVHDUFKULQJ $QLQYHQWRU\RIDOOH[LVWLQJWRZHUVRUVWUXFWXUHVZLWKLQWKHVHDUFKULQJ WKDW DUH DW OHDVW VHYHQW\ILYH SHUFHQW RI WKH KHLJKW RI WKH WRZHU UHTXHVWHGLQWKHDSSOLFDWLRQDQG $Q H[SODQDWLRQ RI ZK\ WKH LQYHQWRULHG H[LVWLQJ WRZHUV RU VWUXFWXUHV FDQQRW EH XVHG IRU WKH SODFHPHQW RI WKH FRPPXQLFDWLRQ SURYLGHU¶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¶V GHVLJQHGVHUYLFHWKHIROORZLQJ5)LQIRUPDWLRQVKDOOEHVXEPLWWHG D $UHDVWREHVHUYHGE\WKHZLUHOHVVIDFLOLW\ E 5HODWLRQVKLSWRWKHFRPPXQLFDWLRQSURYLGHU¶VRWKHUH[LVWLQJRU SURSRVHGZLUHOHVVIDFLOLWLHVLIDSSOLFDEOH F 7HFKQLFDO GDWD FRQFHUQLQJ WKH SURSRVHG IDFLOLW\ DQG HDFK H[LVWLQJ DXWKRUL]HG SHQGLQJ DQG SURSRVHG DGMDFHQW VLWH LI DSSOLFDEOH G 7\SHRIVHUYLFHRUIXQFWLRQ 3ULPDU\IUHTXHQF\RUIUHTXHQF\EDQG 6LWHQDPHRURWKHUUHIHUHQFH /DWLWXGH DQG ORQJLWXGH 1$' RU :*6 RI WKH WRZHUDQG 6LWHHOHYDWLRQDPVO )RU HDFK SURSRVHG DQG HDFK DGMDFHQW FHOO 2PQL PLFURZDYH DQGVHFWRUDQWHQQDLIDSSOLFDEOH 0DQXIDFWXUHU 0RGHOQXPEHU )UHTXHQF\RUIUHTXHQF\EDQGLIQRWSULPDU\IUHTXHQF\ EDQG +HLJKWRIDQWHQQDUDGLDWLRQFHQWHUDJO ZSGDWDOGFUZOGFZLUHOHVVIDFLOLWLHV 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ 0D[LPXP HIIHFWLYH UDGLDWHG RXWSXW SRZHU VSHFLI\ XQLWV $]LPXWKRIPDLQOREHGHJUHHVHDVWRIQRUWK1[[[( ,IXVHGPHFKDQLFDODQGHOHFWULFDOEHDPWLOWSDUDPHWHUV 3URSRVHGRUUHTXLUHGFRYHUDJHDUHD /DWLWXGH ORQJLWXGH DQG DQWHQQD KHLJKW DERYH JURXQG RISRLQWWRSRLQWVLWHVDQG 2WKHU DGGLWLRQDO LQIRUPDWLRQ DV PD\ EH UHTXLUHG WR WHFKQLFDOO\YHULI\DQDSSOLFDQW¶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¶VUHSUHVHQWDWLYH H 7KH&RXQW\DGGUHVVZKHUHZULWWHQREMHFWLRQVFDQEHILOHGDQG I $VWDWHPHQWVXEVWDQWLDOO\WKHVDPHDVWKHIROORZLQJ 127,&( $7LHU7ZRDSSOLFDWLRQIRUDQDGPLQLVWUDWLYHVLWH SODQ UHYLHZ XQGHU WKH 3DVFR &RXQW\ /DQG 'HYHORSPHQW &RGH 6HFWLRQ KDV EHHQ VXEPLWWHGIRUWKLVSURSRVHGWRZHU,I\RXKDYH DQ\ TXHVWLRQV DERXW WKLV DSSOLFDWLRQ \RX DUH HQFRXUDJHG WR FRQWDFW WKH DSSOLFDQW¶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¶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³H[FOXVLYHXVH´DUHDVOLNHWHUUDFHVEDOFRQLHVRUSDWLRVWKDWRQO\WKH RZQHUUHQWHU DQG SHRSOH DOORZHG E\ WKH RZQHUUHQWHU PD\ HQWHU DQG XVH ,I WKH DUHD LV VKDUHG ZLWK RWKHUV RU DFFHVVLEOH ZLWKRXW WKH RZQHUUHQWHU¶VSHUPLVVLRQLWLVQRWFRQVLGHUHGWREHDQH[FOXVLYHXVH DUHD ' ( $Q 27$5'IDFLOLW\ PD\ DOVR EH LQVWDOOHG E\ D ODQGORUG D FRPPXQLW\ DVVRFLDWLRQRUMRLQWO\E\FRQGRPLQLXPRZQHUVIRUFRPPRQXVH 'HVLJQ6WDQGDUGV 3HUVRQDOWRZHUVVKDOOEHQRWDOOHUWKDQLVUHTXLUHGIRUSURSHURSHUDWLRQ RIWKHLQWHQGHGVHUYLFH¶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• /LEHUDOO\FRQVWUXHGLQIDYRURIWKHJRYHUQLQJERG\DQG •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¶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¶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³PDWHULDO FKDQJH´ VKDOO PHDQ D FKDQJH WKDW UHVXOWV LQ DQ LQFUHDVHG GHPDQG IRU RU LPSDFWRQWKHFRQFXUUHQF\IDFLOLW\RUIDFLOLWLHVIRUZKLFKWKHSURMHFWLVH[HPSW )RU WUDQVSRUWDWLRQ IDFLOLWLHV D ³PDWHULDO FKDQJH´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¶V &RQFXUUHQF\ ,PSOHPHQWDWLRQ 3URFHGXUHV 0DQXDO DGRSWHG E\ WKH 6FKRRO 'LVWULFW SXUVXDQW WR &KDSWHU )ORULGD 6WDWXWHV DQG IRXQG DW KWWSSDVFRNIOXV SODQQLQJFRQFXUUHQF\ WKH 6FKRRO &RQFXUUHQF\ ,PSOHPHQWDWLRQ 3URFHGXUHV 0DQXDO &DSDFLW\'HWHUPLQDWLRQ3URFHGXUHV ,QLWLDO&HUWLILFDWHVRI&DSDFLW\)RUDUWHULDODQGFROOHFWRUWUDQVSRUWDWLRQ IDFLOLWLHV PDVV WUDQVLW VDQLWDU\ VHZHU SRWDEOH ZDWHU ZDWHU VXSSO\ VROLGZDVWHDQGSDUNVDQGUHFUHDWLRQDQLQLWLDO&HUWLILFDWHRI&DSDFLW\ VKDOO EH UHTXLUHG SULRU WR WKH LVVXDQFH RU DSSURYDO RI RQH RI WKH IROORZLQJ 'HYHORSPHQW 2UGHUV IRU DQ\ SURMHFW RU SURMHFW SKDVH WKH ,QLWLDO&HUWLILFDWHRI&DSDFLW\'HYHORSPHQW2UGHUV D '5,RU)ORULGD4XDOLW\'HYHORSPHQWSXUVXDQWWR&KDSWHU )ORULGD6WDWXWHV E =RQLQJ $PHQGPHQWV H[FOXGLQJ =RQLQJ $PHQGPHQWV WR , ,32DQG32 F 3UHOLPLQDU\6LWH3ODQ G 3UHOLPLQDU\3ODQ H 1RQUHVLGHQWLDO6XEGLYLVLRQRU I 5HVLGHQWLDO 6XEGLYLVLRQ LQWR PRUH WKDQ 2QH 'ZHOOLQJ 8QLW 3HU/RW ZSGDWDOGFUZOGFFRQFXUUHQF\ 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ )RUVFKRROIDFLOLWLHVDQLQLWLDO&HUWLILFDWHRI&DSDFLW\VKDOOEHUHTXLUHG SULRU WR WKH LVVXDQFH RU DSSURYDO RI RQH RI WKH IROORZLQJ 'HYHORSPHQW2UGHUVIRUDQ\SURMHFWRUSURMHFWSKDVH • 3UHOLPLQDU\'HYHORSPHQW5HVLGHQWLDO3ODQRU • 5HVLGHQWLDO 6XEGLYLVLRQ LQWR PRUH WKDQ 2QH 'ZHOOLQJ 8QLW 3HU/RW ,QLWLDO&HUWLILFDWHVRI&DSDFLW\VKDOOEHYDOLGDQGUHVHUYHFDSDFLW\IRUD SHULRG RI VL[ \HDUV IURP WKH GDWH RI LVVXDQFH H[FHSW IRU DUWHULDO DQG FROOHFWRU WUDQVSRUWDWLRQ IDFLOLWLHV DQG VFKRRO IDFLOLWLHV 7KH FDSDFLW\ UHVHUYDWLRQ IRU DUWHULDO DQG FROOHFWRU WUDQVSRUWDWLRQ IDFLOLWLHV VKDOO GHSHQG RQ ZKHWKHU WKH ,QLWLDO &HUWLILFDWH RI &DSDFLW\ UHTXLUHV D WUDIILF VWXG\ LQ DFFRUGDQFH ZLWK WKHVH UHJXODWLRQV DQG WKH 7,6 *XLGHOLQHV RU WUDIILF VWXG\ LQ DFFRUGDQFH ZLWK &KDSWHU )ORULGD 6WDWXWHVWRGHWHUPLQHFDSDFLW\IRUDUWHULDODQGFROOHFWRUWUDQVSRUWDWLRQ IDFLOLWLHVWUDIILFVWXG\,QLWLDO&HUWLILFDWHVRI&DSDFLW\UHTXLULQJDWUDIILF VWXG\ VKDOO EH YDOLG DQG UHVHUYH FDSDFLW\ IURP WKH GDWH RI LVVXDQFH WKURXJKWKH EXLOGRXW GDWH RI WKHWUDIILF VWXG\ ZKLFK VKDOO EH QR OHVV WKDQ WZR \HDUV 8QOHVV RWKHUZLVH DSSURYHG E\ WKH 'HYHORSPHQW 5HYLHZ&RPPLWWHH'5&RUWKH%&&WKHEXLOGRXWGDWHRIWKHWUDIILF VWXG\VKDOOEHQRJUHDWHUWKDQILIWHHQ\HDUVIURPWKHGDWHRIWKH LQLWLDO WUDIILF VWXG\ PHWKRGRORJ\ VXEPLWWDO IRU '5, DQG )ORULGD 4XDOLW\ 'HYHORSPHQWVDQGQRJUHDWHUWKDQWHQ\HDUVIURPWKHGDWHRIWKH LQLWLDO WUDIILF VWXG\ PHWKRGRORJ\ VXEPLWWDO IRU DOO RWKHU GHYHORSPHQWV UHTXLULQJ D WUDIILF VWXG\ ,QLWLDO &HUWLILFDWHV RI &DSDFLW\ WKDW GR QRW UHTXLUH D WUDIILF VWXG\ LQ DFFRUGDQFH ZLWK WKHVH UHJXODWLRQV VKDOO EH YDOLGDQGUHVHUYHFDSDFLW\IRUDSHULRGRIWZR\HDUVIURPWKHGDWH RILVVXDQFHKRZHYHUDQ\,QLWLDO&HUWLILFDWHRI&DSDFLW\DSSOLFDQWWKDW LVQRWUHTXLUHGWRFRPSOHWHDWUDIILFVWXG\PD\YROXQWDULO\FRPSOHWHD WUDIILFVWXG\SXUVXDQWWRWKHVHUHJXODWLRQVDQGWKH7,6*XLGHOLQHVDQG EHVXEMHFWWRWKHFDSDFLW\UHVHUYDWLRQSHULRGVIRUSURMHFWVUHTXLUHGWR FRPSOHWH D WUDIILF VWXG\ )RU VFKRRO IDFLOLWLHV ,QLWLDO &HUWLILFDWHV RI &DSDFLW\VKDOOEHYDOLGDQGUHVHUYHFDSDFLW\IRUDSHULRGRIWKUHH \HDUV IURP WKH GDWH RI LVVXDQFH RI WKH ,QLWLDO &HUWLILFDWH RI &DSDFLW\ XQOHVV D ORQJHU WLPH SHULRG LV DSSURYHG LQ DFFRUGDQFH ZLWK WKH UHTXLUHPHQWV RI WKH 6FKRRO &RQFXUUHQF\ ,PSOHPHQWDWLRQ 3URFHGXUHV 0DQXDO 7KH IRUHJRLQJ H[SLUDWLRQ SHULRGV IRU ,QLWLDO &HUWLILFDWHV RI &DSDFLW\ DUH VXEMHFW WR WKH DGGLWLRQDO UHYLHZ DQG UHYRFDWLRQ UHTXLUHPHQWV VHW IRUWK EHORZ ,QLWLDO &HUWLILFDWHV RI &DSDFLW\ WKDW H[SLUH PD\ EH UHQHZHG RQO\ XSRQ FRPSOLDQFH ZLWK DOO DSSOLFDEOH DSSOLFDWLRQ DQG UHYLHZ UHTXLUHPHQWV VHW IRUWK LQ WKHVH UHJXODWLRQV ,QLWLDO &HUWLILFDWH RI &DSDFLW\ 'HYHORSPHQW 2UGHUV VKDOO QRW UHTXLUH D QHZ,QLWLDO&HUWLILFDWHRI&DSDFLW\LIWKHSURMHFWRUSURMHFWSKDVHKDVD YDOLG DQG XQH[SLUHG ,QLWLDO &HUWLILFDWH RI &DSDFLW\ DW WKH WLPH RI LVVXDQFHRUDSSURYDORIWKH,QLWLDO&HUWLILFDWHRI&DSDFLW\'HYHORSPHQW 2UGHU ZSGDWDOGFUZOGFFRQFXUUHQF\ 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ )RU GUDLQDJH DUWHULDO DQG FROOHFWRU WUDQVSRUWDWLRQ IDFLOLWLHV PDVV WUDQVLWVDQLWDU\VHZHUSRWDEOHZDWHUZDWHUVXSSO\VROLGZDVWHSDUNV DQG UHFUHDWLRQ DQG VFKRRO IDFLOLWLHV D )LQDO &HUWLILFDWH RI &DSDFLW\ VKDOO EH UHTXLUHG SULRU WR WKH LVVXDQFH RU DSSURYDO RI RQH RI WKH IROORZLQJ'HYHORSPHQW2UGHUVIRUDQ\SURMHFWRUSURMHFWSKDVH)LQDO &HUWLILFDWHRI&DSDFLW\'HYHORSPHQW2UGHUV D %XLOGLQJ 3HUPLW LVVXDQFH IRU QRQUHVLGHQWLDO GHYHORSPHQW UHVLGHQWLDO GHYHORSPHQW QRW UHTXLULQJ VXEGLYLVLRQ SODW RU UHVLGHQWLDO VXEGLYLVLRQV LQWR PRUH WKDQ RQH GZHOOLQJ XQLW SHUORW E )LQDO SODW DSSURYDO IRU UHVLGHQWLDO VXEGLYLVLRQV LQWR RQH GZHOOLQJXQLWSHUORW )RU SXEOLF VFKRROV VLWH SODQ DSSURYDO WR WKH H[WHQW UHTXLUHG E\ WKH ,QWHUORFDO$JUHHPHQWEHWZHHQWKH&RXQW\DQGWKH6FKRRO'LVWULFW )LQDO&HUWLILFDWHVRI&DSDFLW\ $Q\ SURMHFW RU SURMHFW SKDVH ZLWK D YDOLG DQG XQH[SLUHG ,QLWLDO &HUWLILFDWHRI&DSDFLW\DWWKHWLPHRILVVXDQFHRUDSSURYDORIWKH)LQDO &HUWLILFDWH RI &DSDFLW\ 'HYHORSPHQW 2UGHU VKDOO EH HQWLWOHG WR LVVXDQFH RI D )LQDO &HUWLILFDWH RI &DSDFLW\ ZLWKRXWIXUWKHU DQDO\VLV RU UHYLHZIRUWKHSRUWLRQRIWKHSURMHFWZLWKWKHYDOLGDQGXQH[SLUHG,QLWLDO &HUWLILFDWHRI&DSDFLW\VXEMHFWWRWKHDGGLWLRQDOUHYLHZDQGUHYRFDWLRQ UHTXLUHPHQWVVHWIRUWKEHORZSURYLGHGKRZHYHULVVXDQFHRID)LQDO &HUWLILFDWH RI &DSDFLW\ VKDOO EH VXEMHFW WR DGGLWLRQDO UHYLHZ IRU GUDLQDJH FRQFXUUHQF\ UHJDUGOHVV RI ZKHWKHU DQ ,QLWLDO &HUWLILFDWH RI &DSDFLW\KDVEHHQLVVXHG3URMHFWVRUSURMHFWSKDVHVZLWKRXWDYDOLG DQG XQH[SLUHG ,QLWLDO &HUWLILFDWH RI &DSDFLW\ VKDOO UHTXLUH DGGLWLRQDO UHYLHZ LQ DFFRUGDQFH ZLWK WKHVH UHJXODWLRQV )LQDO &HUWLILFDWHV RI &DSDFLW\ RQFH LVVXHG VKDOO QRW H[SLUH DQG VKDOO FRQVWLWXWH D SHUPDQHQW UHVHUYDWLRQ RI FDSDFLW\ VXEMHFW WR WKH DGGLWLRQDO UHYLHZ DQGUHYRFDWLRQUHTXLUHPHQWVVHWIRUWKEHORZ $GGLWLRQDO5HYLHZDQG5HYRFDWLRQ5HTXLUHPHQWV $Q\ SURMHFW RU SURMHFW SKDVH WKDW FKDQJHV WKH QXPEHU RI XQLWV WKH W\SHRIODQGXVHWKHIORRUDUHDRUVTXDUHIRRWDJHIRUDOOQRQUHVLGHQWLDO VWUXFWXUHV RU RWKHU DUHDV WKDW ZLOO EH XVHG IRU GLVSOD\ RU VWRUDJH RI JRRGVRUGHGLFDWHGWRSHUIRUPDQFHRIVHUYLFHVDIWHUDQ,QLWLDORU)LQDO &HUWLILFDWHRI&DSDFLW\KDVEHHQLVVXHGVKDOOEHVXEMHFWWRDGGLWLRQDO UHYLHZLQDFFRUGDQFHZLWKWKHVHUHJXODWLRQVLIWKHFKDQJHUHVXOWVLQDQ LQFUHDVHG GHPDQG IRU RU LPSDFW RQ DQ\ FRQFXUUHQF\ IDFLOLW\ $Q\ SURMHFW RU SURMHFW SKDVH UHTXLULQJ D WUDIILF VWXG\ VKDOO EH VXEMHFW WR DGGLWLRQDOWUDIILFVWXG\UHYLHZLQDFFRUGDQFHZLWKWKHVHUHJXODWLRQVLI DIWHU WKH LVVXDQFH RI WKH ,QLWLDO RU )LQDO &HUWLILFDWH RI &DSDFLW\ WKH EXLOGRXWGDWHODQGXVHDVVXPSWLRQVRURQVLWHFLUFXODWLRQRUDFFHVV SURYLVLRQV LQ WKH WUDIILF VWXG\ IRU WKH SURMHFW RU SURMHFW SKDVH KDYH ZSGDWDOGFUZOGFFRQFXUUHQF\ 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ EHHQFKDQJHGWRWKHH[WHQWWKDWWKH\UHVXOWLQDQLQFUHDVHGLPSDFWRQ DUWHULDODQGFROOHFWRUWUDQVSRUWDWLRQIDFLOLWLHV+RZHYHULQWKHHYHQWD SURMHFWRUSURMHFWSKDVHEHFRPHVVXEMHFWWRDGGLWLRQDOUHYLHZDIWHULW KDV UHFHLYHG D )LQDO &HUWLILFDWH RI &DSDFLW\ VXFK SURMHFW RU SURMHFW SKDVHVKDOOEHVXEMHFWWRDGGLWLRQDOUHYLHZRQO\IRUWKDWSRUWLRQRIWKH SURMHFWWKDWKDVUHVXOWHGLQDQLQFUHDVHGGHPDQGIRURULPSDFWRQWKH FRQFXUUHQF\ IDFLOLW\ DQG VXFK SURMHFW VKDOO RQO\ EH VXEMHFW WR FRQFXUUHQF\UHYLHZIRUWKRVHIDFLOLWLHVZLWKLQFUHDVHGLPSDFWV $Q,QLWLDORU)LQDO&HUWLILFDWHRI&DSDFLW\PD\EHUHYRNHGLIWKH&RXQW\ $GPLQLVWUDWRU RU GHVLJQHH GHWHUPLQHV WKDW WKH DSSOLFDWLRQ LQIRUPDWLRQ XVHG DV D EDVLV IRU WKH LVVXDQFH RI WKH &HUWLILFDWH RI &DSDFLW\ ZDV LQDFFXUDWH DQG VXFK LQDFFXUDF\ ZDV PDWHULDO WR WKH FDSDFLW\ GHWHUPLQDWLRQ RU D FRQGLWLRQ RI WKH ,QLWLDO RU )LQDO &HUWLILFDWH RI &DSDFLW\ KDV QRW EHHQ IXOILOOHG E\ WKH WLPH SHULRG UHTXLUHGLQVXFKFRQGLWLRQRULQWKHDEVHQFHRIDWLPHSHULRGE\WKH LVVXDQFHRIWKHILUVW&2IRUWKHSURMHFWRUSURMHFWSKDVHWKDWUHFHLYHG WKH &HUWLILFDWH RI &DSDFLW\ +RZHYHU EHIRUH WKH &RXQW\ $GPLQLVWUDWRU RU GHVLJQHH UHYRNHV D &HUWLILFDWH RI &DSDFLW\ WKH &RXQW\VKDOOSURYLGHWKLUW\GD\VSULRUZULWWHQQRWLFHRIWKHSODQQHG UHYRFDWLRQ WR DOO SURSHUW\ RZQHUV WKDW ZRXOG EH VXEMHFW WR D QHZ &HUWLILFDWHRI&DSDFLW\XSRQVXFKUHYRFDWLRQ'XULQJVXFKWKLUW\ GD\SHULRGDQ\SURSHUW\RZQHUQRWLILHGRIWKHSODQQHGUHYRFDWLRQPD\ HLWKHU FXUH WKH LQDFFXUDF\ RU QRQFRPSOLDQFH RU DSSHDO WKH SODQQHGUHYRFDWLRQSXUVXDQWWRWKLV&RGH,QWKHHYHQWRIDQDSSHDO RI WKH SODQQHG UHYRFDWLRQ WKH UHYRFDWLRQ VKDOO EH VWD\HG XQWLO VXFK WLPHWKDWWKH%&&GHWHUPLQHVWKDWWKH&HUWLILFDWHRI&DSDFLW\VKDOOEH UHYRNHG $V WR VFKRRO IDFLOLWLHV WKH 6FKRRO 'LVWULFW PD\ IRUPXODWH DGRSW DQG HQIRUFH LWV RZQ UXOHV RI UHYRFDWLRQ RI D &RQFXUUHQF\ &DSDFLW\ /HWWHU LQ WKH 6FKRRO &RQFXUUHQF\ ,PSOHPHQWDWLRQ 3URFHGXUHV 0DQXDO 7KH 6FKRRO 'LVWULFW¶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¶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Ȉ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¶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¶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¶V 6RXWK DQG :HVW 0DUNHW $UHDV ZKLFK PDNH XS WKH 8UEDQ&RQFHQWUDWLRQ$UHDGHVLJQDWHGSXUVXDQWWR3ROLFLHV)/8 DQGRIWKH&RPSUHKHQVLYH3ODQDQGZKLFKDUHGHVLJQHGKHUHLQ DV WKH ³8UEDQ´ $VVHVVPHQW 'LVWULFW ³$´ VKDOO EH FRQVLGHUHG WKH &RXQW\¶V XUEDQ DUHD ZKHUH GHYHORSPHQW LV HQFRXUDJHG E\ WKLV VHFWLRQWKHPRELOLW\IHHDQGWKH&RPSUHKHQVLYH3ODQ 7KH/RQJ5DQJH7UDQVSRUWDWLRQ3ODQ/573VKDOOEHFRQVLGHUHGWKH PXOWLPRGDO PRELOLW\ SODQ UHTXLUHG E\ 3ROLF\ 75$ RI WKH &RPSUHKHQVLYH3ODQDQGWKH0RELOLW\)HH6WXG\DQGPRELOLW\IHHDUH EDVHGRQWKH/573 7KH0RELOLW\)HH6WXG\PRELOLW\IHHDQGWKLVVHFWLRQFRPSO\ZLWKWKH UHTXLUHPHQWVRI3ROLF\75$RIWKH&RPSUHKHQVLYH3ODQDQGDUH FRQVLVWHQW ZLWK WKH 6WDWH /HJLVODWXUH¶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¶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¶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³$´ VKDOO EH FRQVLGHUHGWKH³8UEDQ´$VVHVVPHQW'LVWULFWDQGGHYHORSPHQW ZLWKLQVXFKGLVWULFWLVVXEMHFWWRWKH³XUEDQ´PRELOLW\IHHVLQWKH 0RELOLW\ )HH 6FKHGXOH 7KH $VVHVVPHQW 'LVWULFW ODEHOHG ³%´ VKDOO EH FRQVLGHUHG WKH ³6XEXUEDQ´ $VVHVVPHQW 'LVWULFW DQG 'HYHORSPHQW ZLWKLQ VXFK GLVWULFW LV VXEMHFW WR WKH ³VXEXUEDQ´ PRELOLW\ IHHV LQ WKH 0RELOLW\ )HH 6FKHGXOH 7KH $VVHVVPHQW 'LVWULFW ODEHOHG ³&´ VKDOO EH FRQVLGHUHG WKH ³5XUDO´ $VVHVVPHQW 'LVWULFW DQG GHYHORSPHQW ZLWKLQ VXFK GLVWULFW LV VXEMHFW WR WKH ³UXUDO´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³1HW 0RELOLW\)HH´DQGWKLVGROODUDPRXQWVKDOOEHPXOWLSOLHGE\WKH QXPEHURIXQLWVLQWKHGHYHORSPHQWVHHNLQJD%XLOGLQJ3HUPLW RU 'HYHORSPHQW 3HUPLW IRU VXFK ODQG XVH 7KH EDVH XQLW IRU WKLV FDOFXODWLRQ LV VHW IRUWK LQ WKH ³8QLW´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³1HW 0RELOLW\ )HH´ FROXPQ LQ WKH 0RELOLW\ )HH 6FKHGXOH VKRZV D PRELOLW\ IHH IRU VXFK ODQG XVH 7KH DGPLQLVWUDWLRQ IHH VKDOO EH 2QH +XQGUHG 1LQHW\(LJKW DQG 'ROODUV IRU HDFK %XLOGLQJ3HUPLWRU'HYHORSPHQW3HUPLWLIQR%XLOGLQJ3HUPLWLV UHTXLUHG LVVXHG IRU D ODQG XVH FODVVLILHG DV ORGJLQJ UHFUHDWLRQLQVWLWXWLRQVRIILFHUHWDLORULQGXVWULDOLQWKH0RELOLW\ )HH 6FKHGXOH HYHQ LI WKH ³1HW 0RELOLW\ )HH´ FROXPQ LQ WKH 0RELOLW\ )HH 6FKHGXOH VKRZV D PRELOLW\ IHH IRU VXFK ODQG XVH 7KH DGPLQLVWUDWLRQ IHHIRU DOWHUDWLRQV VKDOO EH 2QH +XQGUHG 1LQHW\(LJKW DQG 'ROODUV IRU HDFK %XLOGLQJ 3HUPLW LVVXHG IRU D ODQG XVH FODVVLILHG DV UHVLGHQWLDO LQ WKH 0RELOLW\ )HH 6FKHGXOH HYHQ LI WKH ³1HW 0RELOLW\ )HH´ FROXPQ LQ WKH 0RELOLW\ )HH 6FKHGXOH VKRZV D PRELOLW\ IHH IRU VXFK ODQG XVH 7KH DGPLQLVWUDWLRQ IHH IRU DOWHUDWLRQV VKDOO EH 1LQHW\1LQH DQG 'ROODUV IRU HDFK %XLOGLQJ3HUPLWRU'HYHORSPHQW3HUPLWLIQR%XLOGLQJ3HUPLWLV UHTXLUHG LVVXHG IRU D ODQG XVH FODVVLILHG DV ORGJLQJ UHFUHDWLRQLQVWLWXWLRQVRIILFHUHWDLORULQGXVWULDOLQWKH0RELOLW\ )HH 6FKHGXOH HYHQ LI WKH ³1HW 0RELOLW\ )HH´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³DJHUHVWULFWHG´UDWHLQWKH 0RELOLW\ )HH 6FKHGXOH XQWLO VXFK SHUVRQ KDV UHFRUGHG GHHG UHVWULFWLRQV LQ D IRUP DFFHSWDEOH WR WKH &RXQW\ $WWRUQH\¶V 2IILFHHQVXULQJWKDWWKHSURSHUW\VXEMHFWWRWKHPRELOLW\IHHZLOO UHPDLQ DJH UHVWULFWHG ,Q WKH HYHQW GHHG UHVWULFWLRQV DFFHSWDEOH WR WKH &RXQW\ $WWRUQH\¶V 2IILFH KDYH QRW EHHQ UHFRUGHGE\WKHWLPHWKH&2LVLVVXHGWKHSHUVRQPD\SD\WKH DSSOLFDEOHQRQDJHUHVWULFWHGUDWHDQGLIWKHGHHGUHVWULFWLRQV DFFHSWDEOHWRWKH&RXQW\$WWRUQH\¶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³/HVVWKDQVTXDUHIHHW DQG $QQXDO +RXVHKROG ,QFRPH OHVV WKDQ HLJKW\ SHUFHQW 6+,3 'HILQLWLRQ´ UDWH RU ³/RZ ,QFRPH 6+,3 'HILQHG 0XOWL )DPLO\´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³PRVW UHFHQW SULRU XVH RI WKH SURSHUW\´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³PRVW UHFHQWSULRUGZHOOLQJXQLW´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³%HQ´ +DUULOO 9LOODJHVRI3DVDGHQD+LOOV6WHZDUGVKLS'LVWULFW ,QGHSHQGHQW0RELOLW\)HH6WXG\ D $Q\ SHUVRQ ZKR EHOLHYHV WKDW DQ\ SDUW RI WKH GHPDQG FRPSRQHQWFRPSULVHGRIWULSOHQJWKWULSUDWHDQGSHUFHQWQHZ WULSVWKDWLVXVHGWRFDOFXODWHWKHPRELOLW\IHHRIWKHDSSOLFDEOH ODQG XVH LV LQFRUUHFW RU ZKR KDV D XQLTXH RU UHVWULFWLYH ODQG XVH WKDW FDQ EH YHULILHG WKURXJK WKH &RXQW\¶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¶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¶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¶V GHYHORSPHQW DSSURYDOV RU EXSRQ FRPSOHWLRQ RI HLJKW\ SHUFHQW RU PRUH RI D '5, SODQQHG GHYHORSPHQW¶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³XUEDQ´ PXOWLSOH IDPLO\ GZHOOLQJ XQLW LV FROOHFWHG LQ &ROOHFWLRQ%HQHILW 'LVWULFW 1LQH +XQGUHG 6L[WHHQ DQG 'ROODUV VKDOO EH GHSRVLWHG LQ WKH 6,6 PRELOLW\ IHH DFFRXQW LQ WKH 0RELOLW\ )HH &ROOHFWLRQ%HQHILW 'LVWULFW )XQG 7ZR 7KRXVDQG (LJKW +XQGUHG 6HYHQW\7KUHH DQG 'ROODUV VKDOO EH GHSRVLWHG LQ WKH URDGZD\ PRELOLW\ IHH DFFRXQW LQ WKH 0RELOLW\ )HH &ROOHFWLRQ%HQHILW 'LVWULFW )XQG 7HQ DQG 'ROODUV VKDOO EH GHSRVLWHG LQ WKH WUDQVLW PRELOLW\ IHH DFFRXQW LQ WKH 0RELOLW\ )HH &ROOHFWLRQ%HQHILW 'LVWULFW )XQG DQG 2QH +XQGUHG 6HYHQW\7ZR DQG 'ROODUV VKDOO EH GHSRVLWHG LQ WKH ELF\FOHSHGHVWULDQ PRELOLW\ IHH DFFRXQW LQ WKH 0RELOLW\ )HH &ROOHFWLRQ%HQHILW'LVWULFW)XQG 6LPLODUO\ LI D PRELOLW\ IHHIRU DPXOWLSOHIDPLO\ GZHOOLQJ XQLW LV FROOHFWHG LQ D QRQWUDGLWLRQDO QHLJKERUKRRG GHYHORSPHQW SRUWLRQ RI WKH 923+ 2QH 7KRXVDQG 2QH +XQGUHG 7ZHQW\1LQH DQG 'ROODUV VKDOO EH GHSRVLWHG LQ WKH 6,6 PRELOLW\ IHH DFFRXQW RI WKH 923+ IXQG )RXU 7KRXVDQG )RXU +XQGUHG )RUW\(LJKW DQG 'ROODUV VKDOO EH GHSRVLWHG LQ WKH URDGZD\ PRELOLW\ IHH DFFRXQW RI WKH 923+ IXQG 7ZR +XQGUHG )LIW\)RXU DQG 'ROODUV VKDOO EH GHSRVLWHG LQ WKH ELF\FOHSHGHVWULDQPRELOLW\IHHDFFRXQWRIWKH923+IXQGDQG )RXUWHHQ DQG 'ROODUV VKDOO EH GHSRVLWHG LQWR ZSGDWDOGFUZOGFPRELOLW\IHHV 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ E F G WKH WUDQVLW PRELOLW\ IHH DFFRXQW LQ WKH 0RELOLW\ )HH &ROOHFWLRQ%HQHILW'LVWULFW)XQG ,QDGGLWLRQWRWKHIRUHJRLQJGHSRVLWVWKH&RXQW\VKDOOFDOFXODWH WKH PRELOLW\ IHH VXEVLG\ UHTXLUHG E\ &KDSWHU $UWLFOH9, 'LYLVLRQ RI WKH &RGH RI 2UGLQDQFHV 0XOWL0RGDO 7D[ ,QFUHPHQWIRUHDFK&ROOHFWLRQ%HQHILW'LVWULFWDQGWUDQVIHUDQ\ UHTXLUHG PRELOLW\ IHH VXEVLG\ DQG PRELOLW\ IHH VXEVLG\ GHILFLHQF\ IURP WKH 0XOWL0RGDO 7UDQVSRUWDWLRQ )XQG LQWR WKH PRELOLW\ IHH IXQGV LQ DFFRUGDQFH ZLWK WKH UHTXLUHPHQWV RI &KDSWHU $UWLFOH9, 'LYLVLRQ RI WKH &RGH RI 2UGLQDQFHV 0XOWL0RGDO7D[,QFUHPHQW ,I D PRELOLW\ IHH VXEVLG\ RU GHILFLHQF\ WUDQVIHU LV UHTXLUHG SXUVXDQW WR &KDSWHU $UWLFOH9, 'LYLVLRQ RI WKH &RGH RI 2UGLQDQFHV 0XOWL0RGDO 7D[ ,QFUHPHQW IRU DQ\ &ROOHF WLRQ%HQHILW 'LVWULFWWKH WUDQVIHU VKDOO EH DOORFDWHG DPRQJWKH URDGZD\ WUDQVLW ELF\FOHSHGHVWULDQ DQG 6,6 PRELOLW\ IHH DF FRXQWV DV DSSOLFDEOH ZLWKLQ HDFK &ROOHFWLRQ%HQHILW 'LVWULFW EDVHGRQWKHSHUFHQWDJHRIPRELOLW\IHHVGHSRVLWHGLQWRHDFK DFFRXQWZLWKLQHDFK&ROOHFWLRQ%HQHILW'LVWULFWGXULQJWKHILVFDO \HDUV LQ ZKLFK WKH PRELOLW\ IHH VXEVLG\ RU PRELOLW\ IHH VXEVLG\GHILFLHQF\ZDVFDOFXODWHG 1RWZLWKVWDQGLQJWKHIRUHJRLQJLIDQ\SRUWLRQRIWKH9LOODJHVRI 3DVDGHQD +LOOV 7D[ ,QFUHPHQW 5HYHQXHV LV XWLOL]HG IRU D PRELOLW\IHHVXEVLG\RUPRELOLW\IHHVXEVLG\GHILFLHQF\WUDQVIHU VXFKUHYHQXHVVKDOOEHSODFHGLQWKH923+IXQG,QDGGLWLRQ LI DQ\ SRUWLRQ RI D SDUWLFLSDWLQJ PXQLFLSDOLW\¶V WD[ LQFUHPHQW UHYHQXHV LV XWLOL]HG IRU D PRELOLW\ IHH VXEVLG\ RU PRELOLW\ IHH VXEVLG\GHILFLHQF\WUDQVIHUVXFKUHYHQXHVVKDOOEHWUDQVIHUUHG WRDVHSDUDWHIXQGHDUPDUNHGIRUWKHSDUWLFLSDWLQJPXQLFLSDOLW\ RU WUDQVIHUUHG WR WKH SDUWLFLSDWLQJ PXQLFLSDOLW\ DQG VKDOO EH XWLOL]HGVROHO\IRUWKHSDUWLFLSDWLQJPXQLFLSDOLW\¶VWUDQVSRUWDWLRQ FDSLWDO LPSURYHPHQWV DV PRUH IXOO\ VHW IRUWK LQ WKH &RXQW\ LQWHUORFDODJUHHPHQWZLWKWKHSDUWLFLSDWLQJPXQLFLSDOLW\ 3DUWLFLSDWLQJ PXQLFLSDOLW\ PRELOLW\ IHHV VKDOO EH FROOHFWHG DQG GHSRVLWHGLQDFFRUGDQFHZLWKWKHLQWHUORFDODJUHHPHQWZLWKWKH SDUWLFLSDWLQJ PXQLFLSDOLW\ ,I DQ\ SRUWLRQ RI D SDUWLFLSDWLQJ PXQLFLSDOLW\¶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¶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¶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³2SWLRQ )XOO )HH´ PD[LPXP 7,) RU VLPLODU WHUP VKDOO EH GHHPHG WR UHIHU WR WKH PRELOLW\ IHHV LQ WKH ³)XOO )HH´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³2SWLRQ )XOO )HH´ PD[LPXP 7,) RU VLPLODU WHUP VKDOO EH GHHPHG WR UHIHU WR WKH PRELOLW\ IHHV LQ WKH ³)XOO )HH´ FROXPQ RI WKH 0RELOLW\ )HH 6FKHGXOH $Q\UHIHUHQFHLQDGHYHORSPHQWDSSURYDOWRD7,)FUHGLWVKDOO EHGHHPHGWRUHIHUWRFUHGLWDJDLQVWWKHURDGZD\PRELOLW\IHHV DQGELF\FOHSHGHVWULDQPRELOLW\IHHV ,IDQ\GHYHORSPHQWDSSURYDOGLGQRWUHTXLUHWKHSD\PHQWRID WUDQVSRUWDWLRQ FRQFXUUHQF\ SURSRUWLRQDWH VKDUH DPRXQW EHFDXVH VXFK DPRXQW ZDV OHVV WKDQWKH HVWLPDWHG 7,)V GXH DQGVXFKSURSRUWLRQDWHVKDUHDPRXQWLVQRZJUHDWHUWKDQWKH HVWLPDWHG PRELOLW\ IHHV GXH WKH GHYHORSPHQW DSSURYDO VKDOO DIWHU WKH HIIHFWLYH GDWH RIWKLV DPHQGHG DQG UHVWDWHG VHFWLRQ UHTXLUHWKHSD\PHQWRIWKHSURSRUWLRQDWHVKDUHDPRXQWWRWKH H[WHQWVXFKDPRXQWH[FHHGVWKHHVWLPDWHGPRELOLW\IHHVGXH 7KHVHFKDQJHVDQGFKDQJHGUHIHUHQFHVVKDOOEHE\RSHUDWLRQ RI ODZ DQG PRGLILFDWLRQV RU DPHQGPHQWV WRWKH GHYHORSPHQW DSSURYDOV VKDOO QRW EH UHTXLUHG 7KH IRUHJRLQJ FKDQJHV DQG FKDQJHG UHIHUHQFHV VKDOO QRW DSSO\ WR2SW2XW 'HYHORSPHQWV RU%XLOGLQJ3HUPLWVLVVXHGSULRUWR0DUFK ZSGDWDOGFUZOGFPRELOLW\IHHV 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ , 0RELOLW\)HH2SW2XW3URFHGXUH $VDJHQHUDOUXOHWKHSD\PHQWRIDPRELOLW\IHHDQGDGPLQLVWUDWLRQIHH XSRQ WKH LVVXDQFH RI D &2 VKDOO EH FRQVLGHUHG DQ HOHFWLRQ IRU WKH EXLOGLQJ UHFHLYLQJ WKH &2 WR SD\ PRELOLW\ IHHV LQ OLHX RI 7,)V 6XFK HOHFWLRQ VKDOO QRW DIIHFW WKH UHPDLQLQJ EXLOGLQJV RU SHUVRQV LQ D SODQQHG GHYHORSPHQW DQG VXFK EXLOGLQJV DQG SHUVRQV VKDOO UHPDLQ HQWLWOHGWRXWLOL]HWKH2SW2XW3URFHGXUHVVHWIRUWKLQWKLVVXEVHFWLRQ 8QWLO -XO\ DQ\ EXLOGLQJ RU SHUVRQ PD\ HOHFW WR RSW RXW RI PRELOLW\IHHVDQGUHPDLQVXEMHFWWRWKHSD\PHQWRI7,)VDVVKRZQLQ ([KLELW % KRZHYHU VXFK HOHFWLRQ VKDOO QRW DSSO\ WR DQ\ EXLOGLQJ WKDW KDV DOUHDG\ UHFHLYHG D &2 ZKHQ WKH HOHFWLRQ LV PDGH 6XFKHOHFWLRQVKDOOEHPDGHLQZULWLQJWRWKH&RXQW\$GPLQLVWUDWRURU GHVLJQHHDQGVKDOOLQFOXGHWKHIROORZLQJLQIRUPDWLRQIRUWKHODQGDUHD VXEMHFWWRWKHRSWRXWHOHFWLRQDWKHOHJDOGHVFULSWLRQEWKHSDUFHO LGHQWLILFDWLRQ QXPEHUV RU SODW QDPH DQG SODW ERRN DQG SDJH LI WKH ODQG DUHD LV SODWWHG DQG FDQ $XWR&$' ILOH RU (65, VKDSH ILOH LQ :HVW)ORULGD6WDWH3ODQHFRRUGLQDWHV ,I D EXLOGLQJ RU GHYHORSPHQW LV SDUW RI D SODQQHG GHYHORSPHQW ZLWK FUHGLWV WKH RSWRXW HOHFWLRQ PD\ RQO\ EH PDGH E\ WKH PDVWHU GHYHORSHU RI WKH SODQQHG GHYHORSPHQW ,I D PDVWHU GHYHORSHU RI D SODQQHGGHYHORSPHQWZLWKFUHGLWVHOHFWVWRRSWRXWRIPRELOLW\IHHVDQG UHPDLQVXEMHFWWRWKHSD\PHQWRI7,)VVXFKHOHFWLRQVKDOOEHELQGLQJ RQ DOO EXLOGLQJV GHYHORSPHQW DQG SHUVRQV ZLWKLQ WKH SODQQHG GHYHORSPHQW XQOHVV DQG XQWLO WKH PDVWHU GHYHORSHU UHYRNHV VXFK HOHFWLRQ $Q HOHFWLRQ WR RSW RXW RI PRELOLW\ IHHV VKDOO EH HYLGHQFHG WKURXJK D UHFRUGHG GRFXPHQW DFFHSWDEOH WR WKH &RXQW\ $WWRUQH\¶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¶V 2IILFHWKDWUHYRNHVWKHSULRUHOHFWLRQ)RUSODQQHGGHYHORSPHQWVZLWK FUHGLWV RQO\ WKH PDVWHU GHYHORSHU FDQ UHYRNH WKH RSWRXW HOHFWLRQ DQG WKH PDVWHU GHYHORSHU VKDOO DOVR SURYLGH LQGLYLGXDO QRWLILFDWLRQ RI WKH UHYRFDWLRQ WR DOO RZQHUV RI YDFDQW ODQG LQ WKH SODQQHG GHYHORSPHQW8QOHVVDQRSWRXWHOHFWLRQLVUHYRNHGDWDQHDUOLHUGDWH DOO RSWRXW HOHFWLRQV DQG UHFRUGHG GRFXPHQWV HYLGHQFLQJ VXFK HOHFWLRQV VKDOO H[SLUH RQ 'HFHPEHU DIWHU VXFK GDWH DOO GHYHORSPHQWV DQG SODQQHG GHYHORSPHQWV LQ WKH &RXQW\ VKDOO EH VXEMHFWWRWKHSD\PHQWRIPRELOLW\IHHV ZSGDWDOGFUZOGFPRELOLW\IHHV 3DJH /DQG'HYHORSPHQW&RGH -DQXDU\ 2SW2XW'HYHORSPHQWVXWLOL]LQJWKHSURFHGXUHVLQWKLVVXEVHFWLRQVKDOO EHVXEMHFWWRWKH³)LVFDO<HDU´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¶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¶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¶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³:UDSSHG´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¶V&RPSUHKHQVLYH3ODQDVDKXUULFDQH HYDFXDWLRQURXWHDQGWKDWLVLGHQWLILHGLQWKH&RXQW\¶V1RQ'H0LQLPLV5RDGZD\/LVWDV KDYLQJH[LVWLQJSOXVDSSURYHGGHYHORSPHQWYROXPHVWKDWH[FHHGWKHVHUYLFHYROXPHRI WKHURDGRURWKHUPDMRUFRXQW\URDGVWKDWDUHVLPLODUO\LGHQWLILHGDVKDYLQJH[LVWLQJSOXV DSSURYHG GHYHORSPHQW YROXPHV WKDW H[FHHG WKH VHUYLFH YROXPH RI WKH URDG E\ PRUH WKDQWHQSHUFHQW&RQFXUUHQF\0DQDJHPHQWUHIHUVWRWKHVHURDGVDV³3HUFHQW 5RDGZD\V´DQG³+XUULFDQH(YDFXDWLRQ5RDGZD\V´ 'DP$EDUULHUWRWKHIORZRIOLTXLGVFRQVWUXFWHGRIHDUWKRURWKHUPDWHULDOV 'D\FDUHIDFLOLW\ *HQHUDO$UHVLGHQFHRUEXLOGLQJLQZKLFKFKLOGUHQRUDGXOWVDUHUHFHLYHGIRUIXOO WLPHRUSDUWWLPHFDUHRUWUDLQLQJDQGVKDOOLQFOXGHWKHWHUPVSUHNLQGHUJDUWHQV QXUVHU\VFKRROV³SUHVFKRRODQG³DGXOWFDUH´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³'HYHORSPHQW´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³FRDVWDO FRQVWUXFWLRQ´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³GHYHORSPHQW´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³GZHOOLQJ XQLW´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³ZHHGDQGIHHG´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³LQRUGLQDWHEXUGHQ´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³%XLOGLQJOLQH´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ò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³SURFHVVLQJ´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³$GPLQLVWUDWLRQIHH´VKDOOPHDQWKHIHHIRUWKHDGPLQLVWUDWLRQDQGLPSOHPHQWDWLRQ RIPRELOLW\IHHVDVVHWIRUWKLQ6HFWLRQ*F ³$GPLQLVWUDWLYH 3URFHGXUHV 0DQXDO´ VKDOO PHDQ WKH $GPLQLVWUDWLYH 3URFHGXUHV 0DQXDODGRSWHGE\5HVROXWLRQDQGZKLFKPD\EHDPHQGHGLQWKHIXWXUH E\UHVROXWLRQ $OWHUDWLRQ´VKDOOPHDQWKHDOWHUDWLRQH[SDQVLRQDGGLWLRQWRRUUHSODFHPHQWRID XVH EXLOGLQJ RU GZHOOLQJ XQLW RU WKH FRQVWUXFWLRQ RI DQ $FFHVVRU\ %XLOGLQJ RU 6WUXFWXUH ³$VVHVVPHQWGLVWULFWV´VKDOOPHDQWKHXUEDQVXEXUEDQDQGUXUDOGLVWULFWVXWLOL]HG WR FDOFXODWH WKH PRELOLW\ IHH WKDW D %XLOGLQJ 3HUPLW RU 'HYHORSPHQW 3HUPLW LV UHTXLUHGWRSD\DVHVWDEOLVKHGLQ6HFWLRQ) ³%LF\FOHSHGHVWULDQIDFLOLWLHV´VKDOOPHDQWUDQVSRUWDWLRQIDFLOLWLHVWKDWDUHSULPDULO\ LQWHQGHG WR EH XWLOL]HG E\ SHGHVWULDQV DQG ELF\FOHV LQFOXGLQJ VLGHZDONV PXOWL XVH SDWKV DQG WUDLOV DV ZHOO DV WKH QHFHVVDU\ LQIUDVWUXFWXUH WR VXSSRUW WKH FRQVWUXFWLRQ RI VXFK IDFLOLWLHV VXFK DV GUDLQDJH DUHDV ZHWODQGIORRGSODLQ PLWLJDWLRQ DUHDV ERDUGZDONV ODQGVFDSLQJ ELNH UDFNV VKHOWHUVNLRVNV EHQFKHV DQGVLJQDJH)RUSXUSRVHVRIWKLVGLYLVLRQDELF\FOHSHGHVWULDQFURVVLQJDUHDRU ELF\FOH ODQH FRQVWUXFWHG FRQWLJXRXV WR RU ZLWKLQ D YHKLFXODU WUDYHO ODQH VKDOO EH FRQVLGHUHGDURDGZD\IDFLOLW\DQGQRWDELF\FOHSHGHVWULDQIDFLOLW\ ³%LF\FOHSHGHVWULDQ PRELOLW\ IHH´ VKDOO PHDQ WKH SRUWLRQ RI WKH PRELOLW\ IHH IRU ELF\FOHSHGHVWULDQ IDFLOLWLHV ZKLFK LV LQ WKH ³ELNHSHG VKDUH´ FROXPQ RI WKH PRELOLW\IHHVFKHGXOH ³%XGJHWHG´ RU ³EXGJHWLQJ´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³'HYHORSPHQW´VKDOOPHDQWKHFDUU\LQJRXWRIDQ\EXLOGLQJDFWLYLW\RUWKHPDNLQJ RI DQ\ PDWHULDO FKDQJH LQ WKH XVH RU DSSHDUDQFH RI DQ\ VWUXFWXUH RU ODQG WKDW DWWUDFWVRUSURGXFHVYHKLFXODURUSHUVRQWULSVRYHUDQGDERYHWKDWSURGXFHGE\ WKHH[LVWLQJXVHRIWKHODQG ³'HYHORSPHQW DSSURYDO´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³HQFXPEHUHG´VKDOOPHDQDQLUUHYRFDEOHFRPPLWPHQWWKURXJKDQ DJUHHPHQWRUSXUFKDVHRUGHURUDFRQWUDFW ZSGDWDOGFUZOGFDSSHQGL[D $ /DQG'HYHORSPHQW&RGH -DQXDU\ ([WHUQDOWULSVKDOOPHDQDQ\YHKLFXODURUSHUVRQWULSZKLFKHLWKHUKDVLWVRULJLQV IURPRULWVGHVWLQDWLRQWRWKHGHYHORSPHQWVLWHDQGZKLFKLPSDFWV7UDQVSRUWDWLRQ &DSLWDO,PSURYHPHQWV ³*DVWD[UHYHQXHV´VKDOOPHDQWKHSRUWLRQRIWKHJDVDQGIXHOWD[HVH[SHQGHGE\ WKH &RXQW\ GXULQJ D ILVFDO \HDU IRU 7UDQVSRUWDWLRQ &DSLWDO ([SHQVHV H[FOXGLQJ WKH SRUWLRQ RI VXFK WD[HV IRU ZKLFK D UHYHQXH FUHGLW ZDV JLYHQ WR WKH GHYHORSPHQWSD\LQJDPRELOLW\IHH ³*RYHUQPHQW EXLOGLQJV´ VKDOO PHDQ SXEOLF VFKRROV LQFOXGLQJ FKDUWHU VFKRROV DQGEXLOGLQJVRUGHYHORSPHQWVOHDVHGRURZQHGE\WKH)HGHUDOJRYHUQPHQWWKH VWDWH RI )ORULGD D VWDWH RU )HGHUDO JRYHUQPHQW DJHQF\ 3DVFR &RXQW\ RU D SDUWLFLSDWLQJPXQLFLSDOLW\)RUEXLOGLQJVRUGHYHORSPHQWVZLWKPXOWLSOHWHQDQWVRU XVHV RQO\ WKH SRUWLRQRI VXFK EXLOGLQJV RUGHYHORSPHQWV RZQHG RU OHDVHGE\ D JRYHUQPHQWDOHQWLW\VKDOOEHFRQVLGHUHGDJRYHUQPHQWEXLOGLQJ ³,QGHSHQGHQW 0RELOLW\ )HH 6WXG\ RU 6WXGLHV´ VKDOO PHDQ D VWXG\ RU VWXGLHV FRQGXFWHG SXUVXDQW WR 6HFWLRQ* WR FDOFXODWH WKH PRELOLW\ IHH IRU D SDUWLFXODUODQGXVH ,QWHUQDO WULS VKDOO PHDQ D YHKLFXODU RU SHUVRQ WULS WKDW KDV ERWK LWV RULJLQ DQG GHVWLQDWLRQZLWKLQWKHGHYHORSPHQWVLWHZLWKRXWLPSDFWLQJ7UDQVSRUWDWLRQ&DSLWDO ,PSURYHPHQWV ³,7(0DQXDO´VKDOOPHDQWKHPRVWUHFHQWHGLWLRQRIWKH,QVWLWXWHRI7UDQVSRUWDWLRQ (QJLQHHUV7ULS*HQHUDWLRQ5HSRUW /RQJ5DQJH 7UDQVSRUWDWLRQ 3ODQ /573 VKDOO PHDQ WKH 3DVFR &RXQW\ 0HWURSROLWDQ 3ODQQLQJ 2UJDQL]DWLRQ¶V PRVW UHFHQWO\ DGRSWHG /RQJ5DQJH 7UDQVSRUWDWLRQ3ODQDGRSWHGSXUVXDQWWR6HFWLRQ)ORULGD6WDWXWHV 0DVWHU GHYHORSHU´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¶ 3DLGWKHSURSHUW\WD[HVIRUWKHPDMRULW\RIWKHYDFDQWODQGLQWKH3ODQQHG 'HYHORSPHQW ([HUFLVHGPDMRULW\YRWLQJFRQWURORIDQ\&RPPXQLW\'HYHORSPHQW'LVWULFW SURSHUW\RZQHUVDVVRFLDWLRQRURWKHUHQWLW\UHVSRQVLEOHIRUPDLQWDLQLQJDQ\ FRPPRQDUHDVXWLOL]HGE\WKHHQWLUH3ODQQHG'HYHORSPHQW ,I WKH PDVWHU GHYHORSHU FDQQRW EH GHWHUPLQHG EDVHG RQ WKH DFWLRQV VHW IRUWK DERYHWKHPDVWHUGHYHORSHUVKDOOEHWKHRZQHURIWKHPDMRULW\RIWKHYDFDQWODQG LQ WKH 3ODQQHG 'HYHORSPHQW DV GHWHUPLQHG E\ WKH 3DVFR &RXQW\ 3URSHUW\ $SSUDLVHU¶VUHFRUGV 0RELOLW\IHHRUPRELOLW\IHHVVKDOOPHDQWKHPXOWLPRGDOLPSDFWIHHVDGRSWHG DQG UHTXLUHGWREH SDLG LQ DFFRUGDQFH ZLWK 6HFWLRQ 7KHPRELOLW\ IHH LV PDGH XS RI WKUHH SDUWV WKH URDGZD\ PRELOLW\ IHH WKH WUDQVLW PRELOLW\ IHHDQGWKHELF\FOHSHGHVWULDQPRELOLW\IHH$Q\UHIHUHQFHWRWKHPRELOLW\IHH RU PRELOLW\ IHHV LQ WKLV &RGH ZKLFK GRHV QRW VSHFLILFDOO\ UHIHUHQFH RQH RI WKH SDUWVVKDOOEHFRQVLGHUHGDUHIHUHQFHWRWKHWRWDORIDOOWKUHHSDUWV ³0RELOLW\IHHIXQGV´VKDOOPHDQWKHIXQGVFUHDWHGSXUVXDQWWR6HFWLRQ+ ³0RELOLW\IHHVFKHGXOH´VKDOOPHDQWKHIHHVFKHGXOHVKRZQLQ)LJXUH$ ³0RELOLW\)HH6WXG\´VKDOOPHDQWKHVWXG\DGRSWHGSXUVXDQWWR6HFWLRQ' ZKLFKVXSSRUWVWKHLPSRVLWLRQRIPRELOLW\IHHV ³0RELOLW\ IHH VXEVLG\´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³0RELOLW\IHHVXEVLG\GHILFLHQF\´RU³GHILFLHQF\´VKDOOPHDQWKHUHDUHLQVXIILFLHQW WD[LQFUHPHQWUHYHQXHVLQWKH0XOWL0RGDO7UDQVSRUWDWLRQ)XQGGXULQJDQ\ILVFDO \HDUWRPDNHDPRELOLW\IHHVXEVLG\WUDQVIHUWRDQ\RIWKHRELOLW\IHHIXQGV ³0XOWL0RGDO 7D[ ,QFUHPHQW 2UGLQDQFH´ VKDOO PHDQ WKH &RXQW\ RUGLQDQFH DGRSWHG FRQFXUUHQWO\ ZLWK WKH RUGLQDQFH DGRSWLQJ 6HFWLRQ DV LW PD\ EH DPHQGHGIURPWLPHWRWLPHZKLFKFUHDWHVWKH0XOWL0RGDO7UDQVSRUWDWLRQ)XQG DQGZKLFKSURYLGHVIRUWKHIXQGLQJRIVXFKIXQGIURPWD[LQFUHPHQWUHYHQXHV ³0XOWL0RGDO 7UDQVSRUWDWLRQ )XQG´ VKDOO PHDQ WKH IXQG FUHDWHG SXUVXDQW WR WKH 0XOWL0RGDO 7D[ ,QFUHPHQW 2UGLQDQFH DQG ZKLFK LV IXQGHG IURP WKH WD[ LQFUHPHQWUHYHQXHV ³2SWRXWSURFHGXUH´VKDOOPHDQWKHSURFHGXUHVHWIRUWKLQ6HFWLRQ-RIWKLV &RGHIRUDGHYHORSPHQWWRHOHFWWREHVXEMHFWWRWUDQVSRUWDWLRQLPSDFWIHHVLQOLHX RIPRELOLW\IHHV ³2SWRXWGHYHORSPHQWV´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³3DUWLFLSDWLQJ PXQLFLSDOLW\´ VKDOO PHDQ WKRVH 3DVFR &RXQW\ PXQLFLSDOLWLHV WKDW KDYHRSWHGLQWRWKH3DVFR&RXQW\PRELOLW\IHHSURJUDPE\DGRSWLQJDPRELOLW\ IHH RUGLQDQFH UHSHDOLQJ DQ\ LQFRQVLVWHQW PXQLFLSDO RUGLQDQFHV DQG HQWHULQJ LQWR DQ LQWHUORFDO DJUHHPHQW ZLWK WKH &RXQW\ JRYHUQLQJ FROOHFWLRQ DQG H[SHQGLWXUHRIPRELOLW\IHHVDQGWD[LQFUHPHQWUHYHQXHV ³3DUWLFLSDWLQJPXQLFLSDOLW\PRELOLW\IHHV´VKDOOPHDQWKRVHPRELOLW\IHHVFROOHFWHG ZLWKLQDSDUWLFLSDWLQJPXQLFLSDOLW\ ³3DUWLFLSDWLQJPXQLFLSDOLW\WD[LQFUHPHQWUHYHQXHV´VKDOOPHDQWKHSRUWLRQRIWKH WD[ LQFUHPHQW UHYHQXHV WKDW LV JHQHUDWHG IURP WKH UHDO SURSHUW\ LQ WKH SDUWLFLSDWLQJ PXQLFLSDOLW\ H[FOXGLQJ DQ\ FRPPXQLW\ UHGHYHORSPHQW DUHDV DQG FDOFXODWHGLQDFFRUGDQFHZLWKWKH0XOWL0RGDO7D[,QFUHPHQW2UGLQDQFH ZSGDWDOGFUZOGFDSSHQGL[D $ /DQG'HYHORSPHQW&RGH -DQXDU\ ³3DUWLFLSDWLQJ PXQLFLSDOLW\ 7UDQVSRUWDWLRQ &DSLWDO ,PSURYHPHQWV´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³3ODQQHG 'HYHORSPHQW ZLWK FUHGLWV´ VKDOO PHDQ D 3ODQQHG 'HYHORSPHQW WKDW RZQVRUWKDWLVHQWLWOHGWRWUDQVSRUWDWLRQLPSDFWIHHFUHGLWVRUPRELOLW\IHHFUHGLWV EDVHGRQDGHYHORSPHQWDSSURYDO ³5HJLRQDO WUDQVLW IDFLOLWLHV´ VKDOO PHDQ OLJKW UDLO FRPPXWHU UDLO H[SUHVV EXV RU EXV UDSLG WUDQVLW FDSLWDO IDFLOLWLHV LQFOXGHG LQ WKH PRVW UHFHQWO\ DGRSWHG 7DPSD %D\ $UHD 5HJLRQDO 7UDQVSRUWDWLRQ $XWKRULW\ 0DVWHU 3ODQ RU /RQJ5DQJH 7UDQVSRUWDWLRQ3ODQ 5LJKWRI:D\VKDOOPHDQODQGSURSHUW\RULQWHUHVWWKHUHLQWKDWLVQHFHVVDU\WR DFFRPPRGDWH DOO RI WKH UHTXLUHG HOHPHQWV IRU DQG WR VXSSRUW WKH FRQVWUXFWLRQ DQGRULPSURYHPHQWRI7UDQVSRUWDWLRQ&DSLWDO,PSURYHPHQWV 5RDGZD\ IDFLOLW\´ RU ³URDGZD\ IDFLOLWLHV VKDOO PHDQ FROOHFWRU DQG DUWHULDO URDGZD\ WKURXJKODQHV WXUQODQHV EULGJHV FXUEV JXWWHUV PHGLDQV DQGRU VKRXOGHUV WKH FRQVWUXFWLRQ RI GUDLQDJH IDFLOLWLHV DQGRU PLWLJDWLRQ DUHDV IRU FROOHFWRU DQG DUWHULDO URDGZD\V DQG WKH LQVWDOODWLRQ RI VLJQDJHDGYDQFHG WUDIILF PDQDJHPHQW V\VWHPV DQGRU WUDIILF VLJQDOL]DWLRQ IRU FROOHFWRU DQG DUWHULDO URDGZD\V )RU SXUSRVHV RI WKLV GLYLVLRQ WKH WHUP URDGZD\ IDFLOLWLHV VKDOO QRW LQFOXGH ELF\FOHSHGHVWULDQ IDFLOLWLHV DQG WUDQVLW IDFLOLWLHV +RZHYHU ELF\FOHSHGHVWULDQFURVVLQJDUHDVDQGELF\FOHODQHVFRQVWUXFWHGFRQWLJXRXVWRRU ZLWKLQ D YHKLFXODU WUDYHO ODQH VKDOO EH FRQVLGHUHG D URDGZD\ IDFLOLW\ DQG QRW D ELF\FOHSHGHVWULDQIDFLOLW\ ³5RDGZD\ PRELOLW\ IHH´ VKDOO PHDQ WKH SRUWLRQ RI WKH PRELOLW\ IHH DVVHVVHG IRU LPSDFWVWRURDGZD\IDFLOLWLHV ZKLFKLVLGHQWLILHGRQWKHPRELOLW\IHHVFKHGXOHDV ³URDGVKDUH´ ZSGDWDOGFUZOGFDSSHQGL[D $ /DQG'HYHORSPHQW&RGH -DQXDU\ ³6DOHV WD[ UHYHQXHV´ VKDOO PHDQ WKH SRUWLRQ RI WKH ORFDO JRYHUQPHQW LQIUDVWUXFWXUH VXUWD[ 3HQQ\ IRU 3DVFR H[SHQGHG E\ WKH &RXQW\ GXULQJ D ILVFDO \HDU IRUWUDQVSRUWDWLRQ FDSLWDOH[SHQVHV H[FOXGLQJ WKH SRUWLRQRI VXFK WD[HVIRU ZKLFKDUHYHQXHFUHGLWZDVJLYHQWR'HYHORSPHQWSD\LQJDPRELOLW\IHH ³6WUDWHJLF ,QWHUPRGDO 6\VWHP 6,6 PRELOLW\ IHH´ VKDOO PHDQ WKH SRUWLRQ RI WKH URDGZD\PRELOLW\IHHDVVHVVHGIRULPSDFWVWRLQWHUVWDWHIUHHZD\URDGZD\IDFLOLWLHV LQ3DVFR&RXQW\H[FOXGLQJIUHHZD\VZLWKWROOVDQGZKLFKKDVEHHQUHVHUYHGIRU 7UDQVSRUWDWLRQ&DSLWDO,PSURYHPHQWVWKDWEHQHILWWKH6,67KH6,6PRELOLW\IHH LV LGHQWLILHG LQ WKH PRELOLW\ IHH VFKHGXOH DV WKH ³LQWHUVWDWH VKDUH´ 7KH 6,6 PRELOLW\IHHVKDOOEHFRQVLGHUHGDFRPSRQHQWRIWKHURDGZD\PRELOLW\IHHH[FHSW ZKHUHWKLVGLYLVLRQVSHFLILFDOO\UHIHUHQFHVWKH6,6PRELOLW\IHH ³6LWHDFFHVV ,PSURYHPHQWV´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¶VDFFHVVPDQDJHPHQWUHJXODWLRQVDQG DQ\ ULJKWRIZD\ GHGLFDWLRQV QHFHVVDU\ WR FRQVWUXFW WKH ILUVW IRXU ODQHV RI FROOHFWRU DQG DUWHULDO URDGZD\V ZLWKLQ WKH GHYHORSPHQW VLWH DQG GHVLJQ DQG FRQVWUXFWLRQ RI DQ\ SRUWLRQ RI WKH ILUVW WZR ODQHV RI FROOHFWRU DQG DUWHULDO URDGZD\V ZLWKLQWKHGHYHORSPHQWVLWHLQFOXGLQJDOOURDGZD\IDFLOLWLHVQHFHVVDU\ IRU WKH GHVLJQ DQG FRQVWUXFWLRQ RI FROOHFWRU DQG DUWHULDO URDGZD\V 6LWHDFFHVV LPSURYHPHQWV DOVR LQFOXGH ELF\FOHSHGHVWULDQ IDFLOLWLHV DQG WUDQVLW IDFLOLWLHV DW RU QHDU WKH GHYHORSPHQW VLWH WKDW DUH QHFHVVDU\ WR LQWHUIDFH WKH GHYHORSPHQW¶V H[WHUQDOWULSVRULQWHUQDOWULSVZLWKELF\FOHSHGHVWULDQIDFLOLWLHVDQGWUDQVLWIDFLOLWLHV ORFDWHG RXWVLGH WKH GHYHORSPHQW VLWH LQFOXGLQJ EXW QRW OLPLWHG WR VLGHZDONV PXOWLXVHSDWKVELNHUDFNVDQGWUDQVLWVKHOWHUVNLRVNVORFDWHGLQWHUQDORUDGMDFHQW WRWKHGHYHORSPHQWVLWHKRZHYHUSDUNDQGULGHORWVDQGUHJLRQDOWUDQVLWIDFLOLWLHV VKDOOQRWEHFRQVLGHUHGVLWHDFFHVVLPSURYHPHQWV ³6TXDUHIHHW´RU³VTXDUHIRRWDJH´VKDOOPHDQWKHDUHDRIDSDUFHOXSRQZKLFKD ODQGXVHUHTXLUHGWRSD\DPRELOLW\IHHLVSURSRVHGIRURFFXSDQF\RUVWRUDJHDQG ZKLFKLVXVHGWRFDOFXODWHWKHVTXDUHIRRWDJHRIWKHEXLOGLQJLQFOXGLQJWKHJURVV DUHD PHDVXUHG LQ VTXDUH IHHW IURP WKH H[WHULRU IDFHV RU H[WHULRU ZDOOV RU RWKHU H[WHULRU ERXQGDULHV RI WKH EXLOGLQJ H[FOXGLQJ DUHDV ZLWKLQ WKH LQWHULRU RI WKH EXLOGLQJZKLFKDUHXWLOL]HGIRUSDUNLQJ:LWKUHVSHFWWRGZHOOLQJXQLWVWKHVTXDUH IRRWDJHVKDOOEHFDOFXODWHGDVWKHOLYLQJDUHDXQGHUKHDWDLUFRQGLWLRQLQJ 6WUDWHJLF ,QWHUPRGDO6\VWHP RU ³6,6´ VKDOO PHDQ WKRVH WUDQVSRUWDWLRQIDFLOLWLHV LGHQWLILHG LQ WKH 6WUDWHJLF ,QWHUPRGDO 6\VWHP 3ODQ DGRSWHG SXUVXDQW WR 6HFWLRQ)ORULGD6WDWXWHVDQGORFDWHGZLWKLQ3DVFR&RXQW\ ZSGDWDOGFUZOGFDSSHQGL[D $ /DQG'HYHORSPHQW&RGH -DQXDU\ ³7D[ ,QFUHPHQW 5HYHQXHV´ VKDOO PHDQ WKH WD[ LQFUHPHQW UHYHQXHV FDOFXODWHG JHQHUDWHGDQGH[SHQGHGSXUVXDQWWRWKH0XOWL0RGDO7D[,QFUHPHQW2UGLQDQFH ³7UDGLWLRQDO 1HLJKERUKRRG 'HYHORSPHQW´ RU ³71'´ VKDOO PHDQ GHYHORSPHQW LQ DFFRUGDQFHZLWKWKLV&RGH&KDSWHU7UDGLWLRQDOQHLJKERUKRRGGHYHORSPHQW VKDOO DOVR LQFOXGH WKH /RQJOHDI 038' DQG DQ\ SRUWLRQ RI D SDUWLFLSDWLQJ PXQLFLSDOLW\ WKDW VDWLVILHV WKH WUDGLWLRQDO QHLJKERUKRRG GHYHORSPHQW GHVLJQ SULQFLSOHV LQ WKH 7UDGLWLRQDO 1HLJKERUKRRG 'HYHORSPHQW 2UGLQDQFH DV GHWHUPLQHG E\ WKH &RXQW\ DQG SDUWLFLSDWLQJ PXQLFLSDOLW\ LQ WKH LQWHUORFDO DJUHHPHQWEHWZHHQWKH&RXQW\DQGSDUWLFLSDWLQJPXQLFLSDOLW\ ³7UDQVLW IDFLOLWLHV´ VKDOO PHDQ WUDQVLW FDSLWDO LQIUDVWUXFWXUH LQFOXGLQJ EXW QRW OLPLWHG WREXVHV SDUN DQG ULGH ORWV ELF\FOHUDFNV VKHOWHUVNLRVNV DQG UHJLRQDO WUDQVLW IDFLOLWLHV DV ZHOO DV WKH QHFHVVDU\ LQIUDVWUXFWXUH WR VXSSRUW WKH FRQVWUXFWLRQ RI VXFK IDFLOLWLHV VXFK DV GUDLQDJH DUHDV ZHWODQGIORRGSODLQ PLWLJDWLRQDUHDVODQGVFDSLQJEHQFKHVVLJQDJHDQGELF\FOHSHGHVWULDQIDFLOLWLHV FRQVWUXFWHGWRSURYLGHGLUHFWDFFHVVWRDWUDQVLWVWRS ³7UDQVLW 2ULHQWHG 'HYHORSPHQW´ RU ³72'´ VKDOO PHDQ GHYHORSPHQW LQ DUHDV LGHQWLILHGLQWKH&RPSUHKHQVLYH3ODQZKLFKDUHUHVHUYHGIRUH[LVWLQJRUSODQQHG UHJLRQDOWUDQVLWIDFLOLWLHV7KHVHDUHDVPXVWEHFRPSDFWKDYHPRGHUDWHWRKLJK GHQVLW\ GHYHORSPHQWV EH RI PL[HGXVH FKDUDFWHU LQWHUFRQQHFWHG ELF\FOH DQG SHGHVWULDQ IULHQGO\ DQG GHVLJQHG WR VXSSRUW IUHTXHQW WUDQVLW VHUYLFH RSHUDWLQJ WKURXJKUHJLRQDOWUDQVLWIDFLOLWLHV ³7UDQVLW PRELOLW\ IHH´ VKDOO PHDQ WKH SRUWLRQ RI WKH PRELOLW\ IHH DVVHVVHG IRU LPSDFWVWRWUDQVLWIDFLOLWLHVDQGZKLFKLVLGHQWLILHGLQWKHPRELOLW\IHHVFKHGXOHDV ³WUDQVLWVKDUH´ ³7UDQVSRUWDWLRQ &DSLWDO ,PSURYHPHQWV´ VKDOO PHDQ URDGZD\ IDFLOLWLHV WUDQVLW IDFLOLWLHVDQGELF\FOHSHGHVWULDQIDFLOLWLHV ³7UDQVSRUWDWLRQ&DSLWDO([SHQVHV´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³7UDQVSRUWDWLRQ RSHUDWLRQ DQG PDLQWHQDQFH H[SHQVHV´ VKDOO PHDQ H[SHQVHV DVVRFLDWHG ZLWK WKH RSHUDWLRQ DQG PDLQWHQDQFH RI WUDQVSRUWDWLRQ FDSLWDO LPSURYHPHQWV LQFOXGLQJ FOHDQLQJ UHSDLUV PRZLQJ ODQGVFDSH PDLQWHQDQFH UHVXUIDFLQJ WKDW GRHV QRW H[SDQG WUDQVSRUWDWLRQ FDSDFLW\ DQG IXHO DQG VDODU\ FRVWVIRUWKHRSHUDWLRQRIWUDQVLWV\VWHPV ³7UDQVSRUWDWLRQ LPSDFW IHH´ RU ³WUDQVSRUWDWLRQ LPSDFW IHHV´ VKDOO PHDQ WKH WUDQVSRUWDWLRQ LPSDFW IHHV LQ HIIHFW SULRU WR WKH DGRSWLRQ RI WKH 0RELOLW\ )HH 2UGLQDQFH DQG ZKLFK ZHUH DGRSWHGSXUVXDQW WR WKH7UDQVSRUWDWLRQ ,PSDFW )HH 2UGLQDQFH ³7UDQVSRUWDWLRQ LPSDFW IHH FUHGLWV´ VKDOO PHDQ FUHGLWV DJDLQVW WUDQVSRUWDWLRQ LPSDFW IHHV LVVXHG E\ WKH &RXQW\ SXUVXDQW WR WKH 7UDQVSRUWDWLRQ ,PSDFW )HH 2UGLQDQFH ³7UDQVSRUWDWLRQ ,PSDFW )HH 2UGLQDQFH´ VKDOO PHDQ 2UGLQDQFH 1R DV LW H[LVWHGSULRUWRWKHDGRSWLRQRI2UGLQDQFH1RWKH0RELOLW\)HH2UGLQDQFH ³7UDQVSRUWDWLRQ LPSDFW IHH VFKHGXOH´ VKDOO PHDQ WKH PRVW UHFHQW WUDQVSRUWDWLRQ LPSDFW IHH VFKHGXOH DGRSWHG SXUVXDQW WR WKH 7UDQVSRUWDWLRQ ,PSDFW )HH 2UGLQDQFHDQGZKLFKLVVKRZQLQ)LJXUH% ZSGDWDOGFUZOGFDSSHQGL[D $ /DQG'HYHORSPHQW&RGH -DQXDU\ ³9LOODJHVRI3DVDGHQD+LOOV´RU³923+´VKDOOPHDQWKH-³%HQ´+DUULOO9LOODJHVRI 3DVDGHQD +LOOV 6WHZDUGVKLS 'LVWULFW D GHSHQGHQW VSHFLDO GLVWULFW 7KH ERXQGDULHVRIWKH-³%HQ´+DUULOO9LOODJHVRI3DVDGHQD+LOOV6WHZDUGVKLS'LVWULFW VKDOOEHHVWDEOLVKHGLQWKHRUGLQDQFHFUHDWLQJWKHGLVWULFW ³9LOODJHVRI3DVDGHQD+LOOV)LQDQFLDO3ODQ´VKDOOPHDQWKH)LQDQFLDO3ODQIRUWKH 9LOODJHV RI 3DVDGHQD +LOOV DGRSWHG SXUVXDQW WR 3ROLF\ )/8 RI WKH &RPSUHKHQVLYH3ODQDVDPHQGHG ³9LOODJHV RI 3DVDGHQD +LOOV 0RELOLW\ )HHV´ VKDOO PHDQ WKRVH URDGZD\ PRELOLW\ IHHV DQG ELF\FOHSHGHVWULDQ PRELOLW\ IHHV FROOHFWHG ZLWKLQ WKH 9LOODJHV RI 3DVDGHQD+LOOV ³9LOODJHV RI 3DVDGHQD +LOOV 7D[ ,QFUHPHQW 5HYHQXHV´ VKDOO PHDQ WKH SRUWLRQ RI WKH 7D[ ,QFUHPHQW 5HYHQXHV WKDW LV JHQHUDWHG IURP WKH UHDO SURSHUW\ LQ WKH 9LOODJHV RI 3DVDGHQD +LOOV DQG FDOFXODWHG LQ DFFRUGDQFH ZLWK WKH 0XOWL0RGDO 7D[,QFUHPHQW2UGLQDQFH ³9LOODJHV RI 3DVDGHQD +LOOV 7UDQVSRUWDWLRQ &DSLWDO ,PSURYHPHQWV´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¶VGHPLQLPLVURDGOLVWDVKDYLQJH[LVWLQJEXWDSSURYHGGHYHORSPHQWYROXPHV WKDWH[FHHGQLQHW\SHUFHQWRIWKHVHUYLFHYROXPHRIWKHURDG 1HLJKERUKRRGSDUN$SDUNGHVLJQHGWRVHUYHWKHSRSXODWLRQRIDVLQJOHQHLJKERUKRRG DQGJHQHUDOO\DFFHVVLEOHE\ELF\FOHRUE\IRRW 1HZFRQVWUXFWLRQDVSHUWDLQVWR)ORRG'DPDJH3UHYHQWLRQ$Q\VWUXFWXUHIRUZKLFK WKH VWDUW RI FRQVWUXFWLRQ FRPPHQFHG DIWHU WKH HIIHFWLYH GDWH 1RYHPEHU RI WKH IORRGSODLQ
Similar documents
NCHRP Synthesis 299: Recent Geometric Design Research for
DUHDVRIUHVHDUFKQHHGVWREHLQFOXGHGLQWKHSURJUDPDUHSURSRVHGWR WKH 1DWLRQDO 5HVHDUFK &RXQFLO DQG WKH %RDUG E\ WKH $PHULFDQ $VVRFLDWLRQ RI 6WDWH +LJKZD\ DQG 7UDQVSRUWDWLRQ 2I...
More informationdlu +rxvlqj - Wisconsin REALTORS® Association
$SULOLVIDLUKRXVLQJPRQWK2Q$SULOMRLQXVIRUWKH:LVFRQVLQ)DLU+RXVLQJ1HWZRUN·V WK$QQXDO6WDWHZLGH)DLU+RXVLQJ&RQIHUHQFHLQWKH:LVFRQVLQ'HOOV7KH:5$SOD\VDQ LQVWUXPHQWDOU...
More information