(/%$&./,*+7
7KH(/EDFNOLJKWLVDXWRPDWLFDOO\VZLWFKHG21ZKHQDQ\NH\VDUH
SUHVVHG7KH(/EDFNOLJKWZLOOEHVZLWFKHGRQIRUDSSUR[LPDWHO\
VHFRQGVEHIRUHDXWRPDWLFDOO\VZLWFKLQJ2))
/2:%$77(5<,1',&$725
/RZEDWWHU\LQGLFDWRULVGLVSOD\HGRQWKH/&'ZKHQWKHEDWWHULHVUHTXLUH
FKDQJLQJ
$%2877+(287'22575$160,77(5
7KHUDQJHRIWKH7KHUPRK\JURWUDQVPLWWHUPD\EHDIIHFWHGE\WKH
WHPSHUDWXUH$WFROGWHPSHUDWXUHVWKHWUDQVPLWWLQJGLVWDQFHPD\EH
GHFUHDVHG3OHDVHEHDUWKLVLQPLQGZKHQSRVLWLRQLQJWKHWUDQVPLWWHUV$OVR
WKHEDWWHULHVPD\EHUHGXFHGLQSRZHUIRUWKH7KHUPRK\JURWUDQVPLWWHU
&+(&.,1*)250+]5(&(37,21
,IWKHRXWGRRUWHPSHUDWXUHDQGKXPLGLW\GDWDDUHQRWEHLQJUHFHLYHGZLWKLQ
WKUHHPLQXWHVDIWHUVHWWLQJXSRURXWGRRUGLVSOD\DOZD\VVKRZ³´LQWKH
RXWGRRUVHFWLRQRIWKH:HDWKHUVWDWLRQGXULQJQRUPDORSHUDWLRQSOHDVH
FKHFNWKHIROORZLQJSRLQWV
7KHGLVWDQFHRIWKH:HDWKHUVWDWLRQRUWUDQVPLWWHUVVKRXOGEHDWOHDVW
IHHWPHWHUVDZD\IURPDQ\LQWHUIHULQJVRXUFHVVXFKDVFRPSXWHU
PRQLWRUVRU79VHWV
$YRLGSODFLQJWKHWUDQVPLWWHUVRQWRRULQWKHLPPHGLDWHSUR[LPLW\RI
PHWDOZLQGRZIUDPHV
8VLQJRWKHUHOHFWULFDOSURGXFWVVXFKDVKHDGSKRQHVRUVSHDNHUV
RSHUDWLQ]VLJQDOIUHTXHQF\PD\SUHYHQWFRUUHFWVLJQDO
WUDQVPLVVLRQRUUHFHSWLRQ1HLJKERUVXVLQJHOHFWULFDOGHYLFHV
RSHUDWLQ]VLJQDOIUHTXHQF\FDQDOVRFDXVH
LQWHUIHUHQFH
1RWH
:]VLJQDOLVUHFHLYHGFRUUHFWO\GRQRWUHRSHQWKHEDWWHU\
FRYHURIHLWKHUWKHWUDQVPLWWHURU:HDWKHUVWDWLRQDVWKHEDWWHULHVPD\
VSULQJIUHHIURPWKHFRQWDFWVDQGIRUFHDIDOVHUHVHW6KRXOGWKLVKDSSHQ
DFFLGHQWDOO\WKHQUHVHWDOOXQLWVVHH
³6HWWLQJXS´
DERYHRWKHUZLVH
WUDQVPLVVLRQSUREOHPVPD\RFFXU
7KHWUDQVPLVVLRQUDQJHLVDURXQGIHHWPHWHUVIURPWKH7KHUPR
K\JURWUDQVPLWWHUWRWKH:HDWKHUVWDWLRQLQRSRZHYHUWKLV
GHSHQGVRQWKHVXUURXQGLQJHQYLURQPHQWDQGLQWHUIHUHQFHOHYHOV,IQR
UHFHSWLRQLVSRVVLEOHGHVSLWHWKHREVHUYDWLRQRIWKHVHIDFWRUVDOOV\VWHP
XQLWVKDYHWREHUHVHWVHH
³6HWWLQJXS´
DERYH
326,7,21,1*7+(:($7+(567$7,21
7KHZHDWKHUVWDWLRQKDVEHHQGHVLJQHGWREHKDQJRQDZDOORUIUHH
VWDQGLQJ
)RUIUHHVWDQGLQJ
6LPSO\DWWDFKHGWKHVWDQGWRWKHERWWRPRIWKHXQLWDQG
SODFHRQWRDIODWVXUIDFH
7RZDOOPRXQW
&KRRVHDVKHOWHUHGSODFH$YRLGGLUHFWUDLQDQG
VXQVKLQH
%HIRUHZDOOPRXQWLQJSOHDVHFKHFNWKDWWKHRXWGRRU
WHPSHUDWXUHDQGKXPLGLW\YDOXHVFDQEHUHFHLYHGIURP
WKHGHVLUHGORFDWLRQV7RZDOOPRXQW
)L[DVFUHZQRWVXSSOLHGLQWRWKHGHVLUHGZDOO
OHDYLQJWKHKHDGH[WHQGHGRXWWKHE\DERXW´
PP
+DQJLWRQWRWKHVFUHZ5HPHPEHUWRHQVXUHWKDW
LWORFNVLQWRSODFHEHIRUHUHOHDVLQJ
326,7,21,1*7+(7+(502+<*5275$160,77(5
7KHWKHUPRK\JURWUDQVPLWWHULVVXSSOLHGZLWKD
KROGHUWKDWPD\EHDWWDFKHGWRDZDOOZLWKWKH
WZRVFUHZVVXSSOLHG7KHVHQVRUFDQDOVREH
SRVLWLRQRQDIODWVXUIDFHE\VHFXULQJWKHVWDQG
WRWKHERWWRPWRWKHVHQVRU
7RZDOOPRXQW
6HFXUHWKHEUDFNHWRQWRDGHVLUHGZDOOXVLQJWKH
VFUHZVDQGSODVWLFDQFKRUV
&OLSWKHVHQVRURQWRWKHEUDFNHW
1RWH
%HIRUHSHUPDQHQWO\IL[LQJWKHVHQVRUZDOOEDVHSODFHDOO
XQLWVLQWKHGHVLUHGORFDWLRQVWRFKHFNWKDWWKHRXWGRRU
WHPSHUDWXUHDQGKXPLGLW\UHDGLQJVDUHUHFHLYDEOH,QHYHQWWKDWWKHVLJQDO
LVQRWUHFHLYHGUHORFDWHWKHVHQVRUVRUPRYHWKHPVOLJKWO\DVWKLVPD\
KHOSWKHVLJQDOUHFHSWLRQ
&$5($1'0$,17(1$1&(
x
([WUHPHWHPSHUDWXUHVYLEUDWLRQDQGVKRFNVKRXOGEHDYRLGHGDV
WKHVHPD\FDXVHGDPDJHWRWKHXQLWDQGJLYHLQDFFXUDWHIRUHFDVWV
DQGUHDGLQJV
x
3UHFDXWLRQVVKDOOEHWDNHQZKHQKDQGOLQJWKHEDWWHULHV,QMXULHV
EXUQVRUSURSHUW\GDPDJHPD\EHUHVXOWHGLIWKHEDWWHULHVDUHLQ
FRQWDFWZLWKFRQGXFWLQJPDWHULDOVKHDWFRUURVLYHPDWHULDOVRU
H[SORVLYHV7KHEDWWHULHVVKDOOEHWDNHQRXWIURPWKHXQLWEHIRUHWKH
SURGXFWLVWREHVWRUHGIRUDORQJSHULRGRIWLPH
x
,PPHGLDWHO\UHPRYHDOOORZSRZHUHGEDWWHULHVWRDYRLGOHDNDJHDQG
GDPDJH5HSODFHRQO\ZLWKQHZEDWWHULHVRIWKHUHFRPPHQGHGW\SH
x
:KHQFOHDQLQJWKHGLVSOD\DQGFDVLQJVXVHDVRIWGDPSFORWKRQO\
'RQRWXVHVROYHQWVRUVFRXULQJDJHQWVDVWKH\PD\PDUNWKH/&'
DQGFDVLQJV
x
'RQRWVXEPHUJHWKHXQLWLQZDWHU
x
6SHFLDOFDUHVKDOOEHWDNHQZKHQKDQGOLQJDGDPDJHG/&'GLVSOD\
7KHOLTXLGFU\VWDOVFDQEHKDUPIXOWRXVHUVKHDOWK
x
'RQRWPDNHDQ\UHSDLUDWWHPSWVWRWKHXQLW5HWXUQWKHPWRWKHLU
RULJLQDOSRLQWRISXUFKDVHIRUUHSDLUE\DTXDOLILHGHQJLQHHU2SHQLQJ
DQGWDPSHULQJZLWKWKHXQLWPD\LQYDOLGDWHWKHLUJXDUDQWHH
x
1HYHUWRXFKWKHH[SRVHGHOHFWURQLFFLUFXLWRIWKHGHYLFHDVWKHUHLVD
GDQJHURIHOHFWULFVKRFNVKRXOGLWEHFRPHH[SRVHG
x
'RQRWH[SRVHWKHXQLWVWRH[WUHPHDQGVXGGHQWHPSHUDWXUH
FKDQJHVWKLVPD\OHDGWRUDSLGFKDQJHVLQIRUHFDVWVDQGUHDGLQJV
DQGWKHUHE\UHGXFHWKHLUDFFXUDF\
63(&,),&$7,216
7HPSHUDWXUHPHDVXULQJUDQJH
,QGRRU
)WR)ZLWK)UHVROXWLRQ
&WR&ZLWK&UHVROXWLRQ
³2)/´GLVSOD\HGLIRXWVLGHWKLVUDQJH
2XWGRRU
)WR)ZLWK)UHVROXWLRQ
&WR&ZLWK&UHVROXWLRQ
³2)/´GLVSOD\HGLIRXWVLGHWKLVUDQJH
,QGRRUKXPLGLW\UDQJH WRZLWKUHVROXWLRQ
'LVSOD\³³LIWHPSHUDWXUHLV2/)GLVSOD\³³LIDQG³´LI!
2XWGRRUKXPLGLW\UDQJH WRZLWKUHVROXWLRQ
'LVSOD\³³LIRXWVLGHWHPSHUDWXUHLV2)/GLVSOD\LIDQGLI
!
,QWHULRUGDWDFKHFNLQJLQWHUYDOV
,QGRRU7HPSHUDWXUH
(YHU\VHFRQGV
+XPLGLW\
(YHU\VHFRQGV
$LUSUHVVXUHFKHFNLQJLQWHUYDO (YHU\VHFRQGV
2XWGRRUWHPSHUDWXUHDQGKXPLGLW\GDWDFKHFNLQJLQWHUYDO
(YHU\VHFRQGVRUHYHU\PLQXWHVLIGDWDDUHORVWDQGGLVSOD\³³
7UDQVPLVVLRQUDQJH XSWRIHHWPHWHUVRSHQVSDFH
3RZHUFRQVXPSWLRQ
DONDOLQHEDWWHULHVUHFRPPHQGHG
:HDWKHUVWDWLRQ
[$$,(&/59
7KHUPRK\JURWUDQVPLWWHU
[$$,(&/59
%DWWHU\OLIH
XSWRPRQWKV
'LPHQVLRQV/[:[+
:HDWKHUVWDWLRQ
´[´[´[[PP
7KHUPRK\JURWUDQVPLWWHU [[[[PP
/,$%,/,7<',6&/$,0(5
x
7KHHOHFWULFDODQGHOHFWURQLFZDVWHVFRQWDLQKD]DUGRXVVXEVWDQFHV
'LVSRVDORIHOHFWURQLFZDVWHLQZLOGFRXQWU\DQGRULQXQDXWKRUL]HG
JURXQGVVWURQJO\GDPDJHVWKHHQYLURQPHQW
x
3OHDVHFRQWDFW\RXUORFDORUDQGUHJLRQDODXWKRULWLHVWRUHWULHYHWKH
DGGUHVVHVRIOHJDOGXPSLQJJURXQGVZLWKVHOHFWLYHFROOHFWLRQ
x
$OOHOHFWURQLFLQVWUXPHQWVPXVWIURPQRZRQEHUHF\FOHG8VHUVKDOO
WDNHDQDFWLYHSDUWLQWKHUHXVHUHF\FOLQJDQGUHFRYHU\RIWKH
HOHFWULFDODQGHOHFWURQLFZDVWH
x
7KHXQUHVWULFWHGGLVSRVDORIHOHFWURQLFZDVWHPD\GRKDUPRQSXEOLF
KHDOWKDQGWKHTXDOLW\RIHQYLURQPHQW
x
7KLVSURGXFWPXVWKRZHYHUQRWEHWKURZQLQJHQHUDOUXEELVK
FROOHFWLRQSRLQWV
x
$VVWDWHGRQWKHJLIWER[DQGODEHOHGRQWKHSURGXFWUHDGLQJWKH
³8VHUPDQXDO´LVKLJKO\UHFRPPHQGHGIRUWKHEHQHILWRIWKHXVHU
x
7KHPDQXIDFWXUHUDQGVXSSOLHUFDQQRWDFFHSWDQ\UHVSRQVLELOLW\IRU
DQ\LQFRUUHFWUHDGLQJVDQGDQ\FRQVHTXHQFHVWKDWRFFXUVKRXOGDQ
LQDFFXUDWHUHDGLQJWDNHSODFH
x
7KLVSURGXFWLVQRWWREHXVHGIRUPHGLFDOSXUSRVHVRUIRUSXEOLF
LQIRUPDWLRQ
x
7KLVSURGXFWLVRQO\GHVLJQHGWREHXVHGLQWKHKRPHDVLQGLFDWLRQRI
WKHIXWXUHZHDWKHUDQGLVQRWDFFXUDWH:HDWKHUIRUHFDVWV
JLYHQE\WKLVSURGXFWVKRXOGEHWDNHQRQO\DVDQLQGLFDWLRQDQGQRWDV
EHLQJWRWDOO\DFFXUDWH
x
7KHVSHFLILFDWLRQVRIWKLVSURGXFWPD\FKDQJHZLWKRXWSULRUQRWLFH
x
7KLVSURGXFWLVQRWDWR\.HHSRXWRIWKHUHDFKRIFKLOGUHQ
x
1RSDUWRIWKLVPDQXDOPD\EHUHSURGXFHGZLWKRXWZULWWHQFRQVHQWRI
WKHPDQXIDFWXUHU