%22.

2)58/(65(*8/$7,216
$1'352&('85(6
)25&2175$&7256

&2175$&76'(3$570(17
7KH%DKUDLQ3HWUROHXP&RPSDQ\%6&&ORVHG
%DKUDLQ5HILQHU\%DKUDLQ

0DUFK
 %RRNRI5XOHV5HJXODWLRQV 3URFHGXUHVIRU&RQWUDFWRUV:RNLQJIRU%$3&2

&RQWHQWV

 3XUSRVH 

 'HILQLWLRQV 

 6HFXULW\%DGJHV5HVWULFWHG$UHDV 6HFXULW\*HQHUDOO\ 

 3HUPLWV 

 :RUNLQJ+RXUV 

 )RUPV 6LJQDWXUHV 

 &RQWUDFWRUV¶(PSOR\HHV7UDGH7HVWV 

 &RQWUDFWRU¶V7RROVDQG(TXLSPHQW 

 6DIH3UDFWLFHV 

 :RUN$UHDVDQG*RRG+RXVHNHHSLQJ 

 'LVSRVDORI5XEELVK 

 6DQLWDU\DQG&RRNLQJ)DFLOLWLHVDQG2UGHUO\&RQGXFW 

 'ULQNLQJ:DWHUDQG,FH 

 $FFLGHQWV 

 )LUHDQG)LUH5LVNV 

 7UDIILF5HJXODWLRQV 

 6LWUD:KDUI± 3DUWLFXODU5XOHVDQG5HTXLUHPHQWV 

 6XSSO\RI0DWHULDOV 

 7HUPLQDWLRQDQG:DUQLQJV 

 6SHFLDO5HTXLUHPHQWV 

 +HDOWKDQG6DIHW\,QGXFWLRQ 


0DUFK
 %RRNRI5XOHV5HJXODWLRQV 3URFHGXUHVIRU&RQWUDFWRUV:RNLQJIRU%$3&2

 385326(

 7KHSXUSRVHRIWKLVGRFXPHQWLVWRSURYLGHLQVWUXFWLRQWR&RQWUDFWRUVZLWKUHJDUGWR
WKH REVHUYDQFH RI &RPSDQ\ UHJXODWLRQV DQG SURFHGXUHV DQG WR VXSSOHPHQW WKH
LQIRUPDWLRQ JLYHQ LQ WKH &RPSDQ\¶V ³%RRN ´ DQG WKH &RQWUDFW 6SHFLILFDWLRQ
6KRXOGWKHUHE\DQ\GRXEWUHJDUGLQJWHUPVDQGUHVSRQVLELOLWLHVWKHQWKH³%RRN´
DQGWKH&RQWUDFW6SHFLILFDWLRQVKDOOWDNHSUHFHGHQFH

 $OO &RQWUDFWRUV HPSOR\HG E\ WKH &RPSDQ\ PXVW REVHUYH WKH &RPSDQ\ 5XOHV
5HJXODWLRQV DQG 3URFHGXUHV LQ DGGLWLRQ WR DOO UHOHYDQW %DKUDLQ 6WDWH $FWV
2UGLQDQFHV6WDWXWHV5HJXODWLRQVRU2UGHUV

 7KH&RQWUDFWRUVKDOOHQVXUHWKDWDOO&RQWUDFWRUHPSOR\HHVDUHPDGHDZDUHRIWKH
FRQWHQW RI WKHVH SUDFWLFHV SULRU WR EHJLQQLQJ ZRUN  &RQWUDFWRUV VKDOO EH
UHVSRQVLEOH IRU FRPSOLDQFH ZLWK WKHP GXULQJ WKH SHUIRUPDQFH RI ZRUN IRU WKH
&RPSDQ\

 7KH&RPSDQ\VKDOOKDYHWKHULJKWWRVWRSZRUNXQGHUWKLVFRQWUDFWDWDQ\WLPHLIWKH
ZRUN HQYLURQPHQW LV LGHQWLILHG E\ WKH &RPSDQ\ DV LPPLQHQWO\ KD]DUGRXV WR
SHUVRQVRUSURSHUW\

 7KHSULQFLSDO&RQWUDFWRUKDVWKHUHVSRQVLELOLW\IRUHQVXULQJWKDWKLV6XEFRQWUDFWRUV
LI DQ\ KDYH FRSLHV RI DQG DUH UHTXLUHG WR FRPSO\ ZLWK WKLV %RRN RI 5XOHV
5HJXODWLRQVDQG3URFHGXUHV

 7KH &RQWUDFWRU VKDOO SURYLGH WKH &RPSDQ\ ZLWK WKH QDPH RI WKHLU UHSUHVHQWDWLYH
ZKRVKDOOKDYHUHVSRQVLELOLW\IRUVDIHW\DWWKHMREVLWH

 '(),1,7,216

 ,Q WKH ³%RRN RI 5XOHV 5HJXODWLRQV DQG 3URFHGXUHV´ WKH IROORZLQJ ZRUGV DQG
H[SUHVVLRQVVKDOOKDYHWKHPHDQLQJVKHUHE\UHVSHFWLYHO\DVVLJQHGWRWKHPH[FHSW
ZKHUHWKHFRQWH[WRWKHUZLVHUHTXLUHV

L ³&RPSDQ\´ PHDQV WKH %DKUDLQ 3HWUROHXP &RPSDQ\ %6& &ORVHG

&RPPHUFLDO5HJLVWUDWLRQ1RD&RPSDQ\RUJDQL]HGDQGH[LVWLQJXQGHU
WKH/DZVRI%DKUDLQEHLQJWKHSDUW\RIWKHRQHSDUWWRWKH&RQWUDFWZKRZLOO
HPSOR\ WKH &RQWUDFWRU DQG LQFOXGHV WKH OHJDO VXFFHVVRUV LQ WLWOH WR WKH
&RPSDQ\RUDQ\DVVLJQHHRIWKH&RPSDQ\

LL ³&RQWUDFWRU´ PHDQV WKH SHUVRQ RU SHUVRQV ILUP RU FRPSDQ\ ZKRVH 7HQGHU
KDVEHHQDFFHSWHGE\WKH&RPSDQ\EHLQJWKHSDUW\RIWKHRWKHUSDUWWRWKH
&RQWUDFWDQGLQFOXGHVWKH&RQWUDFWRU¶VSHUVRQDOUHSUHVHQWDWLYHVVXFFHVVRUV
DQGSHUPLWWHGDVVLJQHHV


0DUFK
 %RRNRI5XOHV5HJXODWLRQV 3URFHGXUHVIRU&RQWUDFWRUV:RNLQJIRU%$3&2

LLL ³&RQWUDFW´ PHDQV WKH DJUHHPHQW EHWZHHQ WKH &RPSDQ\ DQG WKH &RQWUDFWRU
DQG LQFOXGHV DOO GRFXPHQWV IRUPLQJ SDUW WKHUHRI DQG VKDOO LQFOXGH DV
DSSOLFDEOH WKH 'UDZLQJV 6SHFLILFDWLRQV :RUN /LVW %LOOV RI 4XDQWLWLHV
6FKHGXOH RI 5DWHV *HQHUDO 7HUPV DQG &RQGLWLRQV WR &RQWUDFWV WKHZULWWHQ
)RUPRI&RQWUDFWDQGDQ\RWKHUGRFXPHQWVGHWDLOHGWKHUHRQ

LY ³7KH ZRUN´ PHDQV ZRUN GHVFULEHG LQ WKH &RQWUDFW LQFOXGLQJ DOO PRGLILHG RU
DGGLWLRQDOZRUNVDQGREOLJDWLRQVWREHSHUIRUPHGXQGHUWKH&RQWUDFW

Y ³7KH6LWH´PHDQVWKHODQGDQGRWKHUSODFHVRQXQGHULQWRRUWKURXJKZKLFK
ZRUNLVWREHH[HFXWHGXQGHUWKHFRQWUDFWRUDQ\DGMDFHQWODQGSDWKRUVWUHHW
ZKLFKPD\EDOORWWHGRUXVHGIRUWKHSXUSRVHRIFDUU\LQJRXWWKH&RQWUDFW

YL ³&RPSDQ\$UHD´PHDQVWKHIHQFHGDUHDVRI$ZDOL5HILQHU\6LWUD7HUPLQDO
'UXP3ODQW:KDUI3LHUKHDG,VODQG:KDUIDQGRWKHU&RPSDQ\LQVWDOODWLRQV
XQOHVVRWKHUZLVHVWDWHG

YLL ³&RPSDQ\ 5HSUHVHQWDWLYH´ PHDQV DQ\ SHUVRQ DSSRLQWHG E\ WKH &RPSDQ\
ZKRVKDOOVXSHUYLVHWKH&RQWUDFWRULQWKHSHUIRUPDQFHRIKLVGXWLHVVHUIRUWK
LQWKH&RQWUDFW

YLLL ³$SSURYHG´ PHDQV DSSURYHG LQ ZULWLQJ DQG ³DSSURYDO´ PHDQV DSSURYDO LQ
ZULWLQJRIWKH&RPSDQ\

L[ ³)LHOG,QVWUXFWLRQ´PHDQVWKHGRFXPHQWZKLFKWUDQVPLW&RPSDQ\,QVWUXFWLRQV
RUDQ\RWKHUGHWDLOVWRWKH&RQWUDFWRU

:RUGVLPSRUWLQJWKHVLQJXODURQO\DOVRLQFOXGHWKHSOXUDODQGYLFHYHUVDZKHUHWKH
FRQWH[WUHTXLUHV

 6(&85,7<%$'*(65(675,&7('$5($6$1'6(&85,7<*(1(5$//<

 6HFXULW\%DGJHV

&RQWUDFWRUV¶SHUVRQQHOPXVWZHDUD&RPSDQ\LVVXHG&RQWUDFWRU¶VVHFXULW\EDGJH
IRU VHFXULW\ DQG LGHQWLILFDWLRQ SXUSRVHV DQG WR JDLQ DFFHVVWRDQGZKLOVWZRUNLQJ
LQ&RPSDQ\$UHDV

D $IWHUILUVWJDLQLQJDSSURYDOIURPWKHDSSURSULDWHDXWKRULW\WKH'HSDUWPHQWDW
LQWHUHVW DOO DSSOLFDWLRQV IRU &RQWUDFWRUV 6HFXULW\ LGHQWLILFDWLRQ EDGJHV PXVW
EHVXEPLWWHGWRWKH&RRUGLQDWRU&RQWUDFWRU6HFXULW\DWOHDVWZRUNLQJGD\V
LQ DGYDQFH RI WKH GDWH RQ ZKLFK WKH\ DUH UHTXLUHG  0DQDJHU 6HFXULW\
'HSDUWPHQW KDVWKHILQDODXWKRULW\WRDFFHSWRUUHMHFW DQ\DSSOLFDWLRQGXULQJ
WKHVDLGGD\SHULRG

E 7KH EDGJHV ZLOO KDYH D SKRWRJUDSK DQG LGHQWLILFDWLRQ GHWDLOV RI WKH
&RQWUDFWRU¶VHPSOR\HH


0DUFK
 %RRNRI5XOHV5HJXODWLRQV 3URFHGXUHVIRU&RQWUDFWRUV:RNLQJIRU%$3&2

,Q RUGHU WKDW LVVXH RI WKH EDGJHV PD\ EH DIIHFWHG LW LV UHTXLUHG WKDW WKH
&RQWUDFWRUVXSSO\WKHIROORZLQJIRUHDFKHPSOR\HHQHHGLQJDEDGJH

L 7ZRFRORXUSKRWRJUDSKVVL]Hs [s ZLWKHPSOR\HH¶VQDPHRQWKH

UHYHUVH

LL (PSOR\HH¶VIXOOQDPH

LLL 1DWLRQDOLW\

LY &RS\RISDVVSRUWLQFOXGLQJUHVLGHQFHSHUPLWIRUH[SDWULDWHV

Y &RS\RI&35&DUG

YL -RE7LWOH3RVLWLRQ

YLL 5HOLJLRQ

YLLL &RS\RI:RUN3HUPLW

L[ &RS\RI$FFHVV&RGHUHTXLUHG± $ZDOL5HILQHU\6LWUDDQG:KDUI

[ :ULWWHQ FRQILUPDWLRQ WKDW WKH HPSOR\HH KDV DWWHQGHG WKH &RPSDQ\

+HDOWK 6DIHW\,QGXFWLRQWUDLQLQJFRXUVHZLWKGHWDLOV

$SSURYDOIRULVVXHRIEDGJHVZLOORQO\EHJLYHQLQUHVSHFWRIFXUUHQWZRUNORDG
DQG DQ\ IXWXUH DSSOLFDWLRQV IRU IXUWKHU EDGJHV PXVW EH VXEVWDQWLDWHG E\
GHWDLOVRIDGGLWLRQDOZRUNORDG

7KH EDGJHV ZLOO EH LVVXHG E\ WKH 6HFXULW\ 'HSDUWPHQW &RQWUDFWV 6HFXULW\
RIILFH&RQWUDFWRUV*DWH2IILFH5HILQHU\

F &RQWUDFWRUV VKDOO UHSRUW WKH ORVV RI DQ\ EDGJHV DQG UHWXUQ DQ\ EDGJHV QR
ORQJHU UHTXLUHG RU ZKHQ LQVWUXFWHG WR GR VR E\ WKH &RPSDQ\ WR WKH
&RQWUDFWV6HFXULW\2IILFH

G &RQWUDFWRUVVKDOOVXUUHQGHUDOOEDGJHVWR6HFXULW\'HSDUWPHQWRQFRPSOHWLRQ
RI MREV IRU WKRVH HPSOR\HHV QR ORQJHU ZRUNLQJ LQ &RPSDQ\ $UHDV  7KHVH
EDGJHVZLOOEHUHLVVXHGVXEVHTXHQWO\ZKHQZDUUDQWHGE\DGGLWLRQDOZRUNORDG
XSRQUHTXHVWWRWKH&RQWUDFWV6HFXULW\2IILFH

H 7KH FKDUJH IRU ORVW RU QRQUHWXUQHG EDGJHV ZLOO EH %' HDFK  7KH
&RPSDQ\ PD\ HLWKHU LQYRLFH WKH &RQWUDFWRU IRU VXFK FKDUJHV ZKLFK WKH
&RQWUDFWRU VKDOO SD\ ZLWKLQ  GD\V RI UHFHLSW RI LQYRLFH RU GHGXFW VXFK
JDUDJHV IURP DQ\ SD\PHQWV GXH WR WKH &RQWUDFWRU  ,Q WKH HYHQW WKDW WKH
EDGJHVDUHVXEVHTXHQWO\IRXQGDQGUHWXUQHGWKHFKDUJHVDUHQRWUHIXQGDEOH


0DUFK
 %RRNRI5XOHV5HJXODWLRQV 3URFHGXUHVIRU&RQWUDFWRUV:RNLQJIRU%$3&2

 (QWU\WR&RPSDQ\$UHDV

(QWU\ WR DQG H[LW IURP &RPSDQ\ DUHDV LV SHUPLWWHG RQO\ WKURXJK PDLQ JDWHV
ZKHUHVHFXULW\JXDUGVKDYHDXWKRULW\WRVWRSDQGVHDUFKDOOYHKLFOHVDVWKH\SDVV
WKURXJK &RQWUDFWRUV¶ YHKLFOHV VKDOO HQWHU DQG OHDYH WKH 5HILQHU\ WKURXJK WKH
&RQWUDFWRU¶V*DWHH[SHFWIRUZHHNHQGVSXEOLFKROLGD\VDQGEHWZHHQ
KRXUV RQ QRUPDO ZHHNGD\V ZKHQ &RQWUDFWRUV VKRXOG XVH WKH &RPSDQ\¶V 1RUWK
$FFHVV*DWH

 3HULPHWHU)HQFHV

3HULPHWHUIHQFHVVKDOOQRWEHFXWUHPRYHGXQGHUPLQHGRULPSDLUHGE\DQ\RWKHU
PHDQV VR WKDW WKHLU DGHTXDF\ DV D SK\VLFDO EDUULHU ZLOO EH UHGXFHG ZLWKRXW WKH
DXWKRULW\RIWKH&RPSDQ\'HSDUWPHQW+HDGFRQFHUQHGDQGWKH0DQDJHU6HFXULW\
$XWKRUL]HG WHPSRUDU\ RSHQLQJV ZLOO EH JXDUGHG E\ WKH &RPSDQ\¶V 6HFXULW\
'HSDUWPHQWDVQHFHVVDU\ $FOHDU]RQHIHHWZLGHPXVWEHPDLQWDLQHGLQVLGH
SHULPHWHUIHQFHVDQGWKHRXWVLGHPXVWEHFOHDUIRULQVSHFWLRQ

 7KHIW2I0DWHULDOV

7KH &RQWUDFWRU LV UHVSRQVLEOH IRU WKH SURSHU VHFXUHPHQW RI DOO PDWHULDOV DQG
HTXLSPHQWRQKLVVLWHVDQGDQ\ORVVHVPXVWEHPDGHJRRGDWKLVH[SHQVHDQGLQ
JRRGWLPHWRFRPSOHWHWKHZRUNLQVFKHGXOH

D ,Q WKH LQWHUHVWV RI JHQHUDO VHFXULW\ DQ\ ORVVHV PXVW EH UHSRUWHG WR WKH
&RPSDQ\5HSUHVHQWDWLYHVRWKDWDQLQYHVWLJDWLRQPD\EHPDGH

 7KHIW2I0DWHULDOV

7KH &RQWUDFWRU VKRXOG ODEHO DOO KLV HTXLSPHQW WRRO ER[HV YHKLFOHV HWF ZLWK
GLVWLQFWLYHPDUNV

 &RQWUDFWRU¶V9HKLFOHV

E &RQWUDFWRU¶VYHKLFOHVDQGZKHHOHGWUDLOHUVRIDOOW\SHVVKDOOEHLQVSHFWHGDQG
FHUWLILHG E\ WKH &RPSDQ\¶V 0DLQWHQDQFH 'LYLVLRQ 'LHVHO DQG $XWR ,QVSHFWRU
SULRU WR EHLQJ DOORZHG WR HQWHUDQGRSHUDWHZLWKLQWKH&RPSDQ\¶V2SHUDWLQJ
$UHDV  )ROORZLQJ DSSURYDO WKH &RQWUDFWRU VKDOO EH LVVXHG ZLWK D YHKLFOH
SDVV YDOLG IRU  PRQWKV E\ 6HFXULW\ 'HSDUWPHQW DQG HDFK YHKLFOH VKDOO
GLVSOD\DQDXWKRULVHGGLVFDWDOOWLPHVZKLOVWZLWKLQWKH&RPSDQ\¶V2SHUDWLQJ
$UHDV  6HFXULW\ 'HSDUWPHQW VKDOO LPPHGLDWHO\ ZLWKGUDZ WKH SDVV LI WKH
YHKLFOHLVIRXQGWREHGHIHFWLYHLQDQ\PDQQHUWKHYHKLFOHVKDOOQRWWKHQEH
XVHG XQWLO VXFK WLPH DV WKH GHIHFW KDV EHHQ UHFWLILHG WR WKH &RPSDQ\¶V
VDWLVIDFWLRQ  $SSURYDO ZLOO RQO\ EH JLYHQ ZKHUH LQ WKH RSLQLRQ RI WKH
&RPSDQ\ WKHUH LV D UHTXLUHPHQW IRU VXFK YHKLFOHV ZLWKLQ WKH &RPSDQ\¶V
2SHUDWLQJ$UHDV

F &RQWUDFWRUVPXVWVXEPLWDOLVWRIDOOHPSOR\HHVDXWKRULVHGWRGULYHYHKLFOHVRU
RSHUDWH HTXLSPHQW WRJHWKHU ZLWK FRSLHV RI WKHLU GULYLQJ OLFHQFHV WR 6HFXULW\
'HSDUWPHQWIRU DSSURYDO


0DUFK
 %RRNRI5XOHV5HJXODWLRQV 3URFHGXUHVIRU&RQWUDFWRUV:RNLQJIRU%$3&2

 ,QIRUPDWLRQ2Q&RPSDQ\2SHUDWLRQV

1R LQIRUPDWLRQ RQ &RPSDQ\ RSHUDWLRQV VKDOO EH UHOHDVHG ZLWKRXW SULRU &RPSDQ\
DSSURYDO

 3KRWRJUDSKV

3KRWRJUDSKV PD\ QRW EH WDNHQ E\ &RQWUDFWRUV XQGHU DQ\ FLUFXPVWDQFHV  ,I LW LV
HVVHQWLDOWKDWSKRWRJUDSKLFUHFRUGVEHNHSWWKHQZULWWHQDSSURYDOPXVWEHREWDLQHG
IURP WKH 0DQDJHU &RQWUDFWV 'HSDUWPHQW ZKR ZLOO DUUDQJH IRU DSSURYDO IURP WKH
DSSURSULDWH &RPSDQ\ DXWKRULW\ DQG IRU WKH VXSSO\ RI DQ RIILFLDO &RPSDQ\
SKRWRJUDSKHU

 3(50,76

 7KH &RPSDQ\ RSHUDWHV D ³3HUPLW WR ZRUN V\VWHP´ WR ZKLFK DOO &RQWUDFWRUV PXVW
FRPSO\'HWDLOVRIWKHSHUPLWUHTXLUHPHQWVDUHFRQWDLQHGLQWKH&RPSDQ\¶V³*XLGH
WR6DIHW\´IRUPLQJ3DUWRI%RRN&RQWUDFWRU¶VVWDIIPXVWIXOO\XQGHUVWDQGWKH
SHUPLW WR ZRUN V\VWHP DQG IROORZ WKH UHTXLUHPHQWV RI WKH ODWHVW &RPSDQ\3HUPLW
6WDQGDUGV

 $SSURYDO2I3HUPLWV

$SSURYHGSHUPLWVDUHUHTXLUHGEHIRUHZRUNRQDQ\MRELVVWDUWHGLQ&RPSDQ\DUHDV
$OO SHUPLWV PXVW EH ZULWWHQ E\ WKH FRQWUDFWRU QRWHG E\ WKH &RPSDQ\
5HSUHVHQWDWLYHDQGPXVWEHVXEPLWWHGE\WKH&RQWUDFWRUIRUDSSURYDOWRHLWKHUWKH
³3HUPLW5RRPV´5HILQHU\3HUPLWPHHWLQJDWSPDQG$ZDOLPHHWLQJDW
DPZKHQPRUHWKDWRQHRZQHUFRDSSURYDOLVUHTXLUHGE\PLGGD\RUDP
RQWKH&RPSDQ\ZRUNLQJGD\EHIRUHWKHSHUPLWLVUHTXLUHGH[SHFWWKDWSHUPLWVIRU
6DWXUGD\RUZRUNLQJGD\VIROORZLQJKROLGD\VPXVWEHVXEPLWWHGEHIRUHPLGGD\RU
DPRQWKHODVWZRUNLQJGD\SUHFHGLQJWKHKROLGD\

 3HUPLW&RXUVH

&RQWUDFWRU¶V 3HUVRQQHO PXVW VXFFHVVIXOO\ FRPSOHWH WKH &RPSDQ\ 3HUPLW &RXUVH

EHIRUHWKH\ZLOOEHDXWKRUL]HGWRDFFHSWSHUPLWV

 5HTXHVWV)RU3HUPLW&RXUVH

5HTXHVWVIURP&RQWUDFWRUVWRDWWHQGWKH&RPSDQ\¶VSHUPLW&RXUVHVKDOOEHPDGH
WR WKH &KDLUPDQ RI &RQWUDFWRU¶V $FFLGHQW 3UHYHQWLRQ &RPPLWWHH ZKR ZLOO DUUDQJH
ZLWK)LUH DQG6DIHW\'HSDUWPHQWWRSURYLGHVXFKFRXUVHV


0DUFK
 %RRNRI5XOHV5HJXODWLRQV 3URFHGXUHVIRU&RQWUDFWRUV:RNLQJIRU%$3&2

 :25.,1*+2856

 8QOHVV RWKHUZLVH VSHFLILHG LQ WKH &RQWUDFW QRUPDO ZRUNLQJ KRXUV IRU &RQWUDFWRUV
VKDOOEHDVIROORZV

6DWXUGD\ DPWRDP

WKUX DQG

7KXUVGD\ DPWRSP

2YHUWLPH

 ,IWKH&RQWUDFWRUZLVKHVWRZRUNRYHUWLPHLH+RXUVLQH[FHVVRIWKRVHGHWDLOHGLQ

SDUDJUDSKV  DERYH SULRU SHUPLVVLRQ PXVW EH REWDLQHG WKURXJK WKH &RPSDQ\
5HSUHVHQWDWLYH  *HQHUDOO\ SHUPLVVLRQ ZLOO RQO\ EH JLYHQ ZKHUH WKHUH LV QR
DOWHUQDWLYHDQGWKHUHZLOOEHQRH[WUDUHLPEXUVHPHQWE\WKH&RPSDQ\

 :KHUH RYHUWLPH LV VSHFLILFDOO\ RUGHUHG WR EH ZRUNHG E\ WKH &RPSDQ\
5HSUHVHQWDWLYHLQZULWLQJWKHH[WUDFRVWWKHUHRIVKDOOEHYDOXHGE\UHIHUHQFHWRWKH
WHUPVRIWKH&RQWUDFW:KHQQRSURYLVLRQLVLQFOXGHGLQWKH&RQWUDFWWKHH[WUDFRVW
VKDOO EH WKH QHW GLIIHUHQFH EHWZHHQ QRUPDO WLPH DQG RYHUWLPH SDLG E\ WKH
&RQWUDFWRUWRWKHHPSOR\HH

 2YHUWLPHVKDOOEHGHHPHGWRFRQVLVWRIWKHIROORZLQJ

D 7LPH ZRUNHG E\ D PDQ LQ H[FHVV RI  KRXUV LQ DQ\ GD\ RU VKLIW  KRXUV
GXULQJ5DPDGDQIRU0XVOLPHPSOR\HHV

E $OOWLPHZRUNHGE\DPDQRQ)ULGD\VXQOHVVDGD\RIILQOLHXKDVEHHQJUDQWHG
ZKHQZRUNLQJRQDUHJXODUVKLIWSDWWHUQ

F $OO WLPH ZRUNHG E\ D PDQ RQ DQ RIILFLDO KROLGD\ DV OLVWHG XQGHU &KDSWHU 
$UWLFOHRIWKH/DERXU/DZIRUWKH3ULYDWH6HFWRU$PLUL/DZ1RRI
DQGDQ\DPHQGPHQWWKHUHWR

 5DPDGKDQ

'HWDLOV RI H[DFW GDWHV DQG FRQGLWLRQV GXULQJ 5DPDGDQ ZLOO EH DQQRXQFHG E\ WKH
&RPSDQ\

'XULQJ WKH 5DPDGDQ WKH QRUPDO PD[LPXP ZRUNLQJ GD\ VKDOO QRW H[FHHG  KRXUV
IRU0XVOLPV


0DUFK
 %RRNRI5XOHV5HJXODWLRQV 3URFHGXUHVIRU&RQWUDFWRUV:RNLQJIRU%$3&2

 )2506$1'6,*1$785(6

 )RUPV$QG6LJQDWXUHV

7KH IROORZLQJ PXVW EH SUHSDUHG E\ WKH &RQWUDFWRU DQG VLJQHG E\ WKH &RPSDQ\
5HSUHVHQWDWLYH

D )RUP%3± :RUN3HUPLW

E )RUP%3± +RWZRUN3HUPLW

F )RUP%3± 2SHUDWLRQRI&UDQHV3HUPLW

G )RUP%3± 5RDG&ORVXUH3HUPLW

H )RUP%3± (QWU\LQWRFRQILQHG6SDFH3HUPLW

I )RUP%3± ([FDYDWLRQ3HUPLW

J )RUP%3± 6SHFLDO+D]DUG3HUPLW

K )RUP%3± (OHFWULFDO

L )RUP%3± 6WRUHV5HTXLVLWLRQ

M )RUP%3*± 6SHFLDO0DWHULDOV5HTXLVLWLRQ

N )RUP± 9HKLFOH0DWHULDO*DWH3DVV

O 'DLO\6WUHQJWK5HSRUWV

P )RUP %3  ± &RQWUDFWRU¶V 7LPH 5HFRUG 6KHHWV WR UHFRUG LGOH WLPH RU
VXSSO\RIVHUYLFHV

Q )RUP %3  ± :RUN 2UGHUV IRU &RPSDQ\ VHUYLFHV FKDUJHDEOH WR D
&RQWUDFWRU¶VDFFRXQW

R )RUP%3± 5HFRUGVRI&RQWUDFWRU¶V&RGHG:HOGHUV

S )RUP%3± 6XSSO\RI&RQWUDFW/DERXUDQG3ODQW

T 5HFHLSWVIRUPDWHULDOVGHOLYHUHGE\WKH&RQWUDFWRU

U /LIWLQJ DQG ULJJLQJ PRQWKO\ LQVSHFWLRQ UHSRUW $SSHQGL[ ³(´ ± 5LJJLQJ

2SHUDWLRQ6WDQGDUGV

 )LHOG,QVWUXFWLRQV

)RUP%3)LHOG,QVWUXFWLRQZLOOEHSUHSDUHGE\WKH&RPSDQ\5HSUHVHQWDWLYH
DQGVLJQHGE\WKHDSSURSULDWH&RPSDQ\VLJQDWRU\1RZRUNVKRXOGFRPPHQFHRQ
VLWHXQWLOWKH&RQWUDFWRUKDVEHHQLVVXHGZLWKDQGVLJQHGD3XUFKDVH2UGHUJLYLQJ
DSSURYDOWRSURFHHG


0DUFK
 %RRNRI5XOHV5HJXODWLRQV 3URFHGXUHVIRU&RQWUDFWRUV:RNLQJIRU%$3&2

 7LPH5HFRUG6KHHWV

:KHQ WKH &RQWUDFW LQFOXGHV VXSSO\ RI VHUYLFHV WKH &RQWUDFWRU PXVW VXEPLW
&RQWUDFWRUV7LPH5HFRUG6KHHWVGDLO\WRWKH&RPSDQ\5HSUHVHQWDWLYHEHIRUHPLG
GD\RIWKHQH[WZRUNLQJGD\

 6WDWLRQDU\

$OOWKHDERYHIRUPVPD\EHREWDLQHGIURPWKH&RPSDQ\5HSUHVHQWDWLYH

 &2175$&7256¶(03/2<((675$'(7(676

 6XSHUYLVRUV

$OO &RQWUDFWRUV¶ VXSHUYLVRU\ SHUVRQQHO HPSOR\HG RQ &RQWUDFWV ZLWK WKH &RPSDQ\
ZLOO EH UHTXLUHG WR DWWHQG D FRXUVH FRYHULQJ &RPSDQ\ UXOHV DQG UHJXODWLRQV DQG
VDIHSUDFWLFHVDSSO\LQJWRZRUNLQFRPSDQ\DUHDV

8SRQ VDWLVIDFWRU\ FRPSOHWLRQ RI WKH FRXUVH WKH &RQWUDFWRU¶V VXSHUYLVRU ZLOO EH
LVVXHG ZLWK D ³3(0,7 &(57,),&$7(´ ZKLFK KH PXVW SURGXFH RQ UHTXHVW ZKHQ
DSSO\LQJIRUSHUPLWDSSURYDOV

7UDGH7HVWV

 7KH&RPSDQ\VKDOOKDYHWKHULJKWWR7UDGH7HVWRUVFUHHQDOO&RQWUDFWRUV¶VWDIIDV
GHHPHG QHFHVVDU\ WR HQVXUH WKDW WKH &RQWUDFWRU¶V 6XSHUYLVLRQ DQG ZRUNIRUFH
FRQIRUPVWRSUHVFULEHGVWDQGDUGVDFFHSWDEOHWRWKH&RPSDQ\

 7UDGHWHVWVZLOOEHFDUULHGRXW E\WKH&RPSDQ\DQGWKH&RQWUDFWRUVPXVWDOORZIRU

DOO DVVRFLDWHG FRVWV IRU VXFK WHVWV  7KH FRPSDQ\ QRUPDOO\ UHTXLUHV IRXU ZHHNV
QRWLFHWRDUUDQJHWKH7UDGH7HVWLQJRI&RQWUDFWRU¶VVWDII

 7KH 'HSDUWPHQW DW LQWHUHVW ZLOO EH UHVSRQVLEOH IRU UHTXHVWLQJ DQG DUUDQJLQJ DOO
UHTXLUHG7UDGH7HVWLQJ

 $OO 7UDGH 7HVWLQJ ZLOO EH FDUULHG RXW DQG ZLWQHVVHG E\ WZR &RPSDQ\
5HSUHVHQWDWLYHV7KH&RQWUDFWRU¶VUHSUHVHQWDWLYHZLOOEHSHUPLWWHGWRZLWQHVVDQ\
WHVWLQJLIKHUHTXHVWVWRGRVR

 7KH &RPSDQ\ ZLOO PDLQWDLQ D UHFRUG RI DOO &RQWDFWRU¶V VWDII DQG ZRUNIRUFH ZKR
KDYHEHHQ7UDGH7HVWHG

 7KH &RPSDQ\ ZLOO LVVXH D EDGJH WR DOO WKH &RQWUDFWRU¶V VWDII ZKR SDVV WKH
&RPSDQ\¶V WUDGH 7HVW WKH &RQWUDFWRU VKDOO VXSSO\ ZKHQ UHTXHVWHG WZR
SKRWRJUDSKVs[sIRUDOO KLVVWDIIZKRSDVVD7UDGH7HVW

 7KH&RPSDQ\KDVWKHULJKWWRUHMHFWDQ\DSSOLFDWLRQIRU7UDGH7HVWLQJDQGPD\DV
GHHPHGQHFHVVDU\UHTXLUHUHWHVWLQJRISUHYLRXVO\WHVWHG&RQWUDFWRU¶VVWDII


0DUFK
 %RRNRI5XOHV5HJXODWLRQV 3URFHGXUHVIRU&RQWUDFWRUV:RNLQJIRU%$3&2

 &UDQH2SHUDWRUVDQG5LJJHUV

$OO FUDQH RSHUDWRUV DQG ULJJLQJ VXSHUYLVRUV PXVW SRVVHVV &RPSDQ\ DSSURYDO
VSHFLI\LQJ WUDGH SURILFLHQF\  &RQWUDFWRUV VKDOO QRPLQDWH WKRVH PHQ ZKR ZLOO EH
UHVSRQVLEOHIRUFDUU\LQJRXWOLIWLQJRSHUDWLRQVIRULQGRFWULQDWLRQDQGWHVWLQJ

:HOGHUV

 $OO ZHOGHUV HPSOR\HG RQ ZRUN IRU WKH &RPSDQ\ PXVW SRVVHVV D FXUUHQW ZHOGHU
&HUWLILFDWH)RUPVSHFLI\LQJWUDGH3URILFLHQF\,QDGGLWLRQHDFKZHOGHUPXVW
EHFXUUHQWO\DSSURYHGE\WKH&RPSDQ\¶V,QVSHFWLRQ'HSDUWPHQW5HIHUWRPRQWKO\
DSSURYHGOLVW,QWKHDEVHQFHRIVXFKDSSURYDOWKHZHOGHU VKDOOEHUHWHVWHG

 :HOGHU WHVWLQJ ZLOO EH FDUULHG RXW E\ WKH &RPSDQ\¶V ,QVSHFWLRQ 'HSDUWPHQW
$SSOLFDWLRQVIRUZHOGHUWHVWLQJPXVWEHPDGHWKURXJK0DQDJHUDWLQWHUHVWE\WKH
&RQWUDFWRU LQ ZULWLQJ  7KH FKDUJHV IRU WKH WHVWLQJ DQG WKH SURFHGXUHV WR EH
IROORZHGZLOOEHDVSXEOLVKHGE\WKH&RPSDQ\IURPWLPHWRWLPH

 7KHIRUHJRLQJWUDGHWHVWEDGJHVDQGZHOGHUFHUWLILFDWHVUHPDLQWKHSURSHUW\RIWKH
&RPSDQ\DQGPXVWEHUHWXUQHGZKHQQRORQJHUUHTXLUHGIRUWKHH[HFXWLRQRIWKH
ZRUNVRURQH[SLU\

 &2175$&7256¶722/6$1'(48,30(17

 7RROVDQG(TXLSPHQW

7KH&RQWUDFWRUVKDOOVXSSO\KLVRZQWRROVDQGHTXLSPHQWH[FHSWZKHUHVSHFLILFDOO\
VWDWHG LQ WKH &RQWUDFW 3XUFKDVH 2UGHU RU 9DULDWLRQ 2UGHU  7KH &RQWUDFWRU VKDOO
HQVXUHWKDWODERXULVHTXLSSHGZLWKVXFKWRROVDVDUHUHTXLUHGWRSURSHUO\H[HFXWH
WKH ZRUN  $OO WRROV SODQW DQG HTXLSPHQW PXVW EH LQVSHFWHG E\ WKH &RPSDQ\
EHIRUHEHLQJDOORZHGWREHXVHGLQWKH&RPSDQ\2SHUDWLRQ$UHDV

 6FDIIROGLQJ/DGGHUVHWF

$OOVWDJLQJVFDIIROGLQJODGGHUVHWFPXVWFRQIRUPWRDOOUHOHYDQWOHJLVODWLRQUHIHU
WR6HFWLRQFRPSDQ\¶V*XLGHWR6DIHW\%RRN3DUW

 6FDIIROGLQJ&RQWUDFWRU

8QOHVVVSHFLILHGDOOVFDIIROGLQJRYHUPHWHUVDERYHJUDGHPXVWEHFDUULHGRXWE\
WKH&RPSDQ\¶VDSSURYHGQRPLQDWHGVFDIIROGLQJ&RQWUDFWRU

 7DUSDXOLQV

$OOWDUSDXOLQVPXVWEHIODPHUHVLVWDQW


0DUFK
 %RRNRI5XOHV5HJXODWLRQV 3URFHGXUHVIRU&RQWUDFWRUV:RNLQJIRU%$3&2

 (TXLSPHQW&KHFNV

$OO&RQWUDFWRU¶VHTXLSPHQW OLVWHGEHORZPXVWEHFKHFNHGE\WKH&RPSDQ\EHIRUH
XVHLQ&RPSDQ\DUHDV

7KHFDWHJRULHVDUHDVIROORZV

D 9HKLFOHV

E $LUFRPSUHVVRUV

F :HOG0DFKLQHV

G *HQHUDWRU6HWV

H 3XPSVLQFOXGLQJWHVWSXPSVDLURUGLHVHO

I 6DQG%ODVWLQJHTXLSPHQW

J $LU2SHUDWHGWRROV

K (OHFWULFDORSHUDWHGWRROV

L 6SHFLDOLVHGHTXLSPHQWHJ$VEHVWRVWUDLOHUV

M 5RDGO\LQJDQGFRPSDFWLQJHTXLSPHQW

N $Q\ RWKHU HTXLSPHQW WKRVH IRU VRPH UHDVRQ GRHV QRW IDOO LQWR WKH DERYH
FDWHJRULHV

$OOWKHDERYHHTXLSPHQWPXVWKDYHDQHTXLSPHQWQXPEHUDQGFDUU\DFRQWUDFWRU¶V
ORJR

8QVDIH(TXLSPHQW

7RROV DQG HTXLSPHQW GHFODUHG XQVDIH E\ WKH &RPSDQ\ 5HSUHVHQWDWLYH PXVW EH
UHPRYHG IURP WKH VLWH LPPHGLDWHO\  7RROV DQG HTXLSPHQW VKDOO EH UHJXODUO\
RYHUKDXOHGDQGZHOOPDLQWDLQHG

 3UHVVXUH9HVVHOV

$LUUHFHLYHUVDQGRWKHUZHOGHGSUHVVXUHYHVVHOVVKDOOEHZKHQQHZSURYLGHGZLWK
D FHUWLILFDWH IURP WKH PDUNHU VWDWLQJ WKH VDIH ZRUNLQJ SUHVVXUH DQG WKH WHDWV WR
ZKLFK LW KDV EHHQ VXEMHFWHG  7KHUHDIWHU WKH\ VKDOO EH WHVWHG DQG FHUWLILHG E\
/OR\G¶V5HJLVWHUZKRDUHWKH%DKUDLQ*RYHUQPHQW¶VOLFHQVHHIRUVXFKWHVWV


0DUFK
 %RRNRI5XOHV5HJXODWLRQV 3URFHGXUHVIRU&RQWUDFWRUV:RNLQJIRU%$3&2

 6$)(35$&7,&(6

 6DIH3UDFWLFHV

$OOZRUNE\&RQWUDFWRUVLQ&RPSDQ\DUHDVPXVWEHFDUULHGRXWLQDVDIHPDQQHULQ
DFFRUGDQFH ZLWK WKH &RPSDQ\ 6WDQGDUGV RQ VDIHW\ DQG DQ\ DSSOLFDEOH %DKUDLQ
OHJLVODWLRQ5HIHUWR6HFWLRQ&RPSDQ\¶V*XLGHWR6DIHW\%RRN3DUW

 6DIHW\0HHWLQJ

7KH &RQWUDFWRU ZKLOVW KDYLQJ FXUUHQW DFWLYH FRQWUDFWV ZLWK WKH &RPSDQ\ VKDOO
QRPLQDWH DQG VHQG D 6HQLRU 6XSHUYLVRU WR WKH PRQWKO\ &RPSDQ\¶V &RQWUDFWRU¶V
VDIHW\PHHWLQJ

 3HGHVWULDQ7UDIILF:LWKLQ7KH5HILQHU\

:KHQPRYLQJIURPRQHSDUWRIWKH5HILQHU\WRDQRWKHU&RQWUDFWRUV¶SHUVRQQHOPXVW
NHHS WR GHILQHG URDGV RU SHGHVWULDQ WKRURXJKIDUHV ZKLFK DUH PDUNHG E\ QRWLFH
ERDUGV'LWFKHVDQGSLSHZD\VPXVWEHFURVVHGRQO\ZKHUHSURSHUO\FRQVWUXFWHG
ZDONZD\V DQG EULGJHV DUH SURYLGHG  ,Q DOO RSHUDWLQJ DUHDV RI WKH 5HILQHU\ WKHUH
DUHKD]DUGVVRPHRIZKLFKDUHNQRZQRQO\WRWKHSHRSOHZKRZRUNWKHUHWKHUHIRUH
SHUVRQQHO PXVW QRW HQWHU RSHUDWLQJ DUHDV XQOHVV LW LV HVVHQWLDO IRU FDUU\LQJ RXW
ZRUNIRUZKLFKDSHUPLWKDVEHHQLVVXHG

 3UHVVXUH7HVWLQJ

:KHUH SUHVVXUH WHVWLQJ LV UHTXLUHG WKH DOORZDEOH SUHVVXUH DQG PHWKRG RU
SURFHGXUH ZLOO EH VSHFLILHG DQG DSSURYHG LQ ZULWLQJ E\ WKH &RPSDQ\ SULRU WR
FRPPHQFHPHQWRIWHVWLQJ

 0DLQ9DOYHV

0DLQJDVRUZDWHUYDOYHVPXVWQRWEHRSHUDWHGE\WKH&RQWUDFWRUH[FHSWLQFDVHV
RIILUHRUHPHUJHQF\,ILWLVQHFHVVDU\WRVKXWRURSHQDPDLQYDOXHWKH&RQWUDFWRU
VKRXOGFRQWDFWWKH&RPSDQ\5HSUHVHQWDWLYH

 7(/:RUNLQJ

$ ZRUN SHUPLW IRU 7(/ FRQWDPLQDWHG DUHDV ZLOO QRW EH LVVXHG XQOHVV VSHFLDO
UHJXODWLRQVKDYHEHHQIXOILOOHGGHWDLOVRIZKLFKPD\EHREWDLQHGIURPWKH&RPSDQ\
5HSUHVHQWDWLYH

 6WRUDJHRI2LO%DVHG3DLQW

5DJV FRQWDPLQDWHG ZLWK RLO VWDLQ PXVW QRW EH VWRUHG XQOHVV LQ VHDOHG PHWDO
FRQWDLQHUV  7KH\ PXVW QRW EH VWRUHG QHDU KRW SLSHV HWF  2SHQ SDLQW WLQV PXVW
QHYHU EH OHIW XQDWWHQGHG LQ $ZDOL ZKHUH FKLOGUHQ FDQ JDLQ DFFHVV WR WKHP  1R
PRUH WKDQ RQHGD\¶V VXSSO\ RI SDLQW VKRXOG EH VWRUHG RQ DQ\ SURFHVV XQLW DQG
HPSW\FDQVVKRXOGEHUHPRYHGDWUHJXODULQWHUYDOV&RQWUDFWRUVZLVKLQJWRVWRUH
PRUH WKDQ  JDOORQV LQ WKHLU DOORFDWHG FRPSRXQG PXVW REWDLQ SULRU ZULWWHQ
DSSURYDOIURPWKH0DQDJHU)LUHDQG6DIHW\'HSDUWPHQW


0DUFK
 %RRNRI5XOHV5HJXODWLRQV 3URFHGXUHVIRU&RQWUDFWRUV:RNLQJIRU%$3&2

 /HDG%DVHG3DLQW

7RDYRLGSRVVLEOHFDVHVRIOHDGSRLVRQLQJWKHIROORZLQJSUHFDXWLRQVVKDOOEHWDNHQ
ZLWKOHDGEDVHGSDLQWDQGE\SHUVRQQHOXVLQJLW

D ,WVKDOOEHVWRUHGLQFRQWDLQHUVFOHDUO\PDUNHGDVFRQWDLQLQJOHDG

E ,WVKDOOQRWEHDSSOLHGDVDVSUD\LQFRQILQHGVSDFHVDQGWKHVSUD\DSSOLFDWRU
PXVWZHDUDQDSSURYHGW\SHRISURWHFWLYHIDFHPDVN

F 6XUIDFHVVKDOOEHUXEEHGGRZQZHWDQGGHEULVUHPRYHGEHIRUHEHFRPLQJGU\

G $GHTXDWHZDWHUVRDSDQGWRZHOVVKDOOEHPDGHDYDLODEOHWRSHUVRQQHOOLDEOH
WR FRPH LQ FRQWDFW ZLWK OHDG EDVHG SDLQW  +DQGV VKRXOG EH ZDVKHGEHIRUH
WDNLQJIRRGRUOHDYLQJWKHVLWH

H 6XLWDEOHZRUNFORWKHVVKDOOEHZRUQDQGWKHVHVKDOOQRWEHZRUQDWPHDOWLPHV
QRQ ZRUQ DZD\ IURP WKH VLWH  6XLWDEOH DUUDQJHPHQWV VKDOO EH PDGH WR
SUHYHQWFRXQWHUPRWLRQRIWKHFORWKHVXVHGE\SHUVRQQHODWPHDOWLPHVDQGRII
WKHVLWH

 0DLQWHQDQFH2I6DIHW\(TXLSPHQW$QG6LJQV

1R VDIHW\ RU RWKHU VLJQ RU FDEOH PDUNHU SRVW PD\ EH UHPRYHG RU REOLWHUDWHG
ZLWKRXWDXWKRULW\7KH&RPSDQ\5HSUHVHQWDWLYHPXVWEHQRWLILHGRIDQ\ DFFLGHQWDO
GDPDJH WR VLJQV  'DPDJH WR )LUH RU 6DIHW\ HTXLSPHQW ZLOO EH QRWLILHG E\ WKH
&RPSDQ\ 5HSUHVHQWDWLYH WR WKH &RPSDQ\¶V )LUH DQG 6DIHW\ 'HSDUWPHQW  $OO
VDIHW\QRWLFHVPXVWEHVWULFWO\REH\HG

 6WRSSDJH2I:RUN

,Q DGGLWLRQ WR WKH DERYH DQ\ &RPSDQ\ 3HUVRQQHO RU DSSRLQWHG -RE :DWFKHU FDQ
VWRS DQ\ &RQWUDFW ZRUN LI LW HQGDQJHUV &RPSDQ\ HTXLSPHQW SODQW RU SHUVRQQHO
HLWKHUGLUHFWO\RULQGLUHFWO\,QVXFKFDVHVWKH&RQWUDFWRUPXVWQRWLI\WKH&RPSDQ\
5HSUHVHQWDWLYHLPPHGLDWHO\

 5LJJLQJ2SHUDWLRQV

$OO &RQWUDFWRUV ZKR FDUU\ RXW ULJJLQJ RSHUDWLRQV IRU WKH &RPSDQ\ PXVW IXOO\
XQGHUVWDQG DQG FRPSO\ ZLWK WKH UHTXLUHPHQWV RI WKH FXUUHQW &RPSDQ\¶V ULJJLQJ
RSHUDWLRQVWDQGDUGUHIHUHQFHDVGHWDLOHGLQ%RRN3DUW

,I LQ GRXEW DV WR VDIH SUDFWLFHV FRQVXOW WKH &RPSDQ\ 5HSUHVHQWDWLYH


0DUFK
 %RRNRI5XOHV5HJXODWLRQV 3URFHGXUHVIRU&RQWUDFWRUV:RNLQJIRU%$3&2

 :25.$5($6$1'*22'+286(.((3,1*

 :RUN$UHDV$QG*RRG+RXVHNHHSLQJ

:RUNDUHDVPXVWEHNHSWFOHDQDQGWLG\DWDOOWLPHVDQGDWWKHHQGRIWKHMREDOO
VFUDS DQG UXEELVK PXVW EH UHPRYHG DQG GLVSRVHG RI LQ DFFRUGDQFH ZLWK &ODXVH
 KHUHRI  &RPSRXQGV IRU WKH VWRUDJH RI PDWHULDOV DQG HTXLSPHQW DUH WR EH
ORFDWHGFOHDURIEXLOGLQJVDQGRYHUKHDGSRZHUFDEOHVDQGPXVWEHNHSWFOHDQDQG
WLG\  2Q FRPSOHWLRQ RI HDFK GD\¶V ZRUN WRROV DQG PDWHULDOV PXVW EH QHDWO\
VWDFNHGDQGDOOODGGHUVODLGRQWKHJURXQGDOOREVWUXFWLRQVPXVWEHUHPRYHGIURP
DFFHVVZD\VWRUHGXFHWULSSLQJKD]DUGVDWQLJKW

 6LWH/LPLWV

7KH &RQWUDFWRU PXVW FRQILQH KLV DFWLYLWLHV WR WKH VSHFLILHG MRE VLWH DQG PXVW QRW
VSUHDG RQ WR DGMDFHQW RSHUDWLQJ DUHDV  &RQWUDFWRUV¶ SHUVRQQHO DUH QRW WR HQWHU
JDUGHQVRUKRXVHVLQ$ZDOLXQOHVVWKH\DUHDFWXDOO\ZRUNLQJLQWKHP

 :RUN,Q$ZDOL

:KHQZRUNLQJLQ$ZDOLKRXVHVRURWKHURIILFHVDQGEXLOGLQJVLWLVWKH&RQWUDFWRU¶V
UHVSRQVLELOLW\WRHQVXUHWKDW

D *DV6XSSO\

7KH JDV VXSSO\ VWRS YDOYH LV RSHQHG RU VKXW RQO\ E\ DXWKRUL]HG FRPSDQ\
SHUVRQQHOH[FHSWLQFDVHVRIHPHUJHQF\RUILUH

E 3URWHFWLRQRI$SSOLDQFHV

$OODSSOLDQFHVVXFKDVUHIULJHUDWRUVHWFDUHDGHTXDWHO\SURWHFWHGDQGWKDW

WKHVHDSSOLDQFHVDUHQRWXVHGRUGDPDJHGGXULQJWKHFRXUVHRIWKHZRUN

F 5HPRYDORI)L[WXUHV

1R IL[WXUH RU IXUQLWXUH LV UHPRYHG IURP WKH EXLOGLQJ ZLWKRXW DXWKRUL]DWLRQ RI
WKH&RPSDQ\5HSUHVHQWDWLYH

G 'DPDJH7R6KUXEV

7UHHVDQGKHGJHVHWFDUHQRWEURNHQRUGDPDJHG&RQWUDFWRUVSHUVRQQHO
VKRXOGXVHWKHJDWHVDQG SDWKVSURYLGHGDQGQRWZDONRQJDUGHQVRUWKURXJK
KHGJHV

H :RUN$UHDV

3ULYDWHJDUGHQVODZQVHWFDUHQRWWREHXVHGDVZRUNVWRUDJHDUHDV

I 'LVSRVDORI:DVWH)RRG

$OO IRRG VFUDSV PXVW EH SODFHG LQ SURSHU JDUEDJH FDQV DQG QRW VWUHZQ
DURXQGRQWKHJURXQGQRUSODFHGLQRSHQFRQWDLQHUV


0DUFK
 %RRNRI5XOHV5HJXODWLRQV 3URFHGXUHVIRU&RQWUDFWRUV:RNLQJIRU%$3&2

 :D\OHDYH$SSOLFDWLRQ

%HIRUHFDUU\LQJRXWDQ\H[FDYDWLRQLQ$ZDOLWKHSUHVHQFHRIDQ\('%$7(/&2
FDEOHV RU VHUYLFHV PXVW EH LQYHVWLJDWHG  ([FDYDWLRQ DFURVV RU DORQJVLGH WKHVH
FDEOHVZLOOUHTXLUHD:D\OHDYHZKLFKZLOOEHLQLWLDWHGE\WKH&RPSDQ\EXWPXVWEH
FRPSOHWHG DQG KHOG RQ VLWH E\ WKH &RQWUDFWRU GXULQJ WKH ZRUNV  $Q\ RWKHU ZRUN
ZKLFK ZLOO UHVWULFW DFFHVV URDGV WR $ZDOL +RVSLWDO RU *RYHUQPHQW LQVWDOODWLRQV
UHTXLUHDVLPLODUZD\OHDYH

 ',6326$/2)58%%,6+

 'XPSLQJ2I5XEELVK

5XEELVK VKDOO RQO\ EH GXPSHG LQ WKH ORFDWLRQV VSHFLILHG RU DV LQVWUXFWHG E\
&RPSDQ\QRWLFHVRUWKH&RPSDQ\5HSUHVHQWDWLYH8QGHUQRFLUFXPVWDQFHVVKDOO
UXEELVKRUVSRLOEHGXPSHGRXWVLGHWKHPDLQ5HILQHU\RU$ZDOL*DWHVRUDORQJVLGH
WKH$ZDOL5HILQHU\URDG

 6FUDSRUVDOYDJHPDWHULDOV

6FUDS RU VDOYDJH PDWHULDOV VKDOO EH WUDQVSRUWHG WR WKH 6DOYDJH DQG 5HFODPDWLRQ
<DUGLQWKH5HILQHU\,QVXODWLRQRURWKHUGHOHWHULRXVPDWWHUPXVWEHUHPRYHGSULRU
WRGLVSDWFKLQJ

 &RPEXVWLEOH5XEELVK

/DUJH DFFXPXODWLRQV RI FHUWDLQ FRPEXVWLEOH UXEELVK VXFK DV SDLQW RU RLOV ZKLFK
FDQQRWEHGLVSRVHGRILQWKHQRUPDOPDQQHUFDQEHGLVSRVHGRIE\FRQWUROOHGILUH
LQ VXFK DUHDV WKDW PD\ EH GHVLJQDWHG E\ WKH &RPSDQ\  6XFK EXUQLQJ VKDOO EH
GHVLJQDWHGE\WKH&RPSDQ\6XFKEXUQLQJVKDOOEHVXSHUYLVHGE\WKH&RPSDQ\¶V
)LUH DQG 6DIHW\ 'HSDUWPHQW ZKR ZLOO LVVXH D ILUH SHUPLW IRU HDFK EXUQLQJ
5HTXHVWV IRU VXFK GLVSRVDO DW WKHVH VLWHV VKDOO EH PDGH WR )LUH DQG 6DIHW\
'HSDUWPHQWDWOHDVWZRUNLQJGD\VLQDGYDQFH

 6$1,7$5<$1'&22.,1*)$&,/,7,(6$1'25'(5/<&21'8&7

 6DQLWDU\)DFLOLWLHV

7KH&RQWUDFWRUZLOOEHSHUPLWWHGWRXVHWKH&RPSDQ\(DVWHUQ7\SHODWULQHIDFLOLWLHV
VLWXDWHGDWYDULRXVSHUPDQHQWORFDWLRQVWKURXJKRXWLWVDUHDVRIRSHUDWLRQV7RLOHWV
ZLWKLQ DGPLQLVWUDWLYH RIILFHV VKDOO QRW EH XVHG ZLWKRXW VSHFLILF DSSURYDO E\ WKH
&RPSDQ\  ,I DW DQ\ WLPH WKHVH IDFLOLWLHV DUH RXW RI RUGHU RU DUH PLVXVHG E\ WKH
&RQWUDFWRU¶VHPSOR\HHVWKHFRQWUDFWRUVKDOOPDNHDOWHUQDWLYHDUUDQJHPHQWVWRWKH
VDWLVIDFWLRQ RI WKH &RPSDQ\  7KH &RPSDQ\ VKDOO QRW EH KHOG OLDEOH IRU DQ\ FRVW
DULVLQJWKHUHIURP


0DUFK
 %RRNRI5XOHV5HJXODWLRQV 3URFHGXUHVIRU&RQWUDFWRUV:RNLQJIRU%$3&2

 8VH2I7RLOHWV

$OO WRLOHWV VKRXOG EH XVHG FDUHIXOO\ DQG FOHDQO\ DQG WKRURXJKO\ IOXVKHG DIWHU XVH
&RQWUDFWRUV¶SHUVRQQHOPXVWQRWGHIHFDWHRUXULQDWHDQ\ZKHUHH[FHSWLQ DSURSHUO\
FRQVWUXFWHGWRLOHWURRPDQGPXVWQRWH[SRVHWKHPVHOYHVLQSXEOLF

 :DVKLQJ)DFLOLWLHV

*DUGHQWDSVLQ$ZDOLPD\EHXVHGIRUZDVKLQJIHHWDQGKDQGVEXWFDUHVKRXOGEH
WDNHQWRHQVXUHWKDWWDSVDUHVKXWRIIWLJKWO\LPPHGLDWHO\DIWHUXVH2QQRDFFRXQW
PD\IRRGFRQWDLQHUVEHZDVKHGXQGHUJDUGHQWDSVQRUPD\WDSVLQVLGHKRXVHVEH
XVHGIRUZDVKLQJIHHWRUKDQGV

 6ZLPPLQJ3RROV

7KH VZLPPLQJ SRROV LQ $ZDOL PXVW QRW EH XVHG E\ &RQWUDFWRUV¶ SHUVRQQHO IRU
EDWKLQJ

 2UGHUO\&RQGXFW

&RQWUDFWRUV¶SHUVRQQHOPXVWDWDOOWLPHVFRQGXFWWKHPVHOYHVLQDQRUGHUO\PDQQHU

 7HD0DNLQJ$QG)RRG+HDWLQJ

7HD PDNLQJ DQG IRRG KHDWLQJ PXVW EH FDUULHG RXW ZLWKLQ WKH VSHFLDO IDFLOLWLHV
SURYLGHGLQ&RPSDQ\DUHDVLIWKHVHDUHDYDLODEOH

D &RQWUDFWRU¶VSHUVRQQHOVKDOOQRWDVN$ZDOLKRXVHKROGHUVWRKHDWIRRGFDQVRU
ZDWHUIRUWHDPDNLQJHWF

E :KHQ&RPSDQ\IDFLOLWLHVDUHQRWDYDLODEOHWKH&RQWUDFWRUPXVWLIKHUHTXLUHV
WKHPVXSSO\KLVRZQWHDPDNLQJDQGIRRGKHDWLQJIDFLOLWLHVDQGHQVXUHWKDW
WKHVHDUHFRYHUHGE\DILUHSHUPLW

 1XLVDQFHWR$ZDOL5HVLGHQWV

:KLOVWZRUNLQJLQ$ZDOLWKH&RQWUDFWRUPXVWVFKHGXOHZRUNVXFKWKDWWKHQXLVDQFH
IDFWRUWR$ZDOL5HVLGHQWVLVPLQLPL]HGRQ7KXUVGD\VDQG&RPSDQ\KROLGD\VZKLFK
WKH&RQWUDFWRUPD\ZRUNLIQRWGHFODUHGDVD*RYHUQPHQWKROLGD\

 '5,1.,1*:$7(5$1',&(

 'ULQNLQJ:DWHU

'ULQNLQJZDWHUDQGLFHIRUKLVHPSOR\HHVPXVWEHVXSSOLHGE\WKH&RQWUDFWRU

 5HTXHVWVIRU'ULQNLQJ:DWHU

5HTXHVWVIRUGULQNLQJZDWHUIURPSULYDWHKRXVHVDUHQRWSHUPLWWHG


0DUFK
 %RRNRI5XOHV5HJXODWLRQV 3URFHGXUHVIRU&RQWUDFWRUV:RNLQJIRU%$3&2

 8QLWV$QG$&6\VWHPV

2QQRDFFRXQWPXVWZDWHUEHGUDZQIURP5HILQHU\2SHUDWLQJ8QLWVRUWKH$ZDOLDLU
FRQGLWLRQLQJV\VWHP

 $&&,'(176

 $FFLGHQWV

,Q FDVH RI DFFLGHQWV WKH &RPSDQ\ ZLOO SURYLGH ILUVW DLG WUHDWPHQW LQ DOO FDVHV
7KHUH ZLOO EH QR FKDUJH IRU VXFK WUHDWPHQW  ,Q RWKHU FDVHV RI LQMXU\ RU LOOQHVV
WUHDWPHQWDQGWUDQVSRUWWRDQRQ&RPSDQ\KRVSLWDOLVWKHVROHUHVSRQVLELOLW\RIWKH
&RQWUDFWRU

 0HGLFDO$WWHQWLRQ$QG$PEXODQFH

,QFDVHRIDFFLGHQWVZKHUHWKHVHUYLFHVRIDGRFWRURUDPEXODQFHDUHUHTXLUHGRULI
DFFLGHQWV LQYROYH &RPSDQ\ SHUVRQQHO SODQW RU HTXLSPHQW WHOHSKRQH  
VWDWLQJ VORZO\ DQG FOHDUO\ WKH H[DFW ORFDWLRQ RI WKH DFFLGHQW QXPEHU RI LQMXULHV
UHFHLYHG DQG ZKHWKHU D GRFWRU LV QHHGHG DW WKH VFHQH RI WKH DFFLGHQW  &KHFN
FDUHIXOO\ WKDW WKH PHVVDJH KDV EHHQ UHFHLYHG DQG LPPHGLDWHO\QRWLI\WKHQHDUHVW
&RPSDQ\5HSUHVHQWDWLYH

 5HSRUWLQJ$FFLGHQWV

$OO&RQWUDFWRUVZKRVHHPSOR\HHVDUHLQYROYHGLQDQDFFLGHQWZKLFKLQYROYHVLQMXU\
RU GDPDJH WR SURSHUW\ ZKLOVW HQJDJHG LQ ZRUN IRU WKH &RPSDQ\ RU &RPSDQ\
RZQHG SURSHUW\ PXVW DV VRRQ DV SUDFWLFDEOH LQIRUP WKH UHVSHFWLYH &RQWUDFW
5HSUHVHQWDWLYHDQGWKH&KDLUPDQRIWKH&RQWUDFWRUV6DIHW\&RPPLWWHH

 0RWRU9HKLFOHV

,Q WKH FDVH RI PRWRU YHKLFOH DFFLGHQWV WKH SURYLVLRQV RI WKH %DKUDLQ 7UDIILF
2UGLQDQFHPXVWEHIROORZHG

 $FFLGHQWV,QYROYLQJ&RPSDQ\9HKLFOHV

,IWKHDFFLGHQWLQYROYHV&RPSDQ\RZQHGRUUHQWHGYHKLFOHVRULVFRQFHUQHGZLWKRU
ORFDWHG RQ &RPSDQ\ RZQHG SURSHUW\ WKH &RQWUDFWRU VKRXOG QRWLI\ 7UDQVSRUW
RSHUDWLRQV LQ $ZDOL WHOHSKRQH   RU   DQG LQ WKH 5HILQHU\
WHOHSKRQHDQGVWDQGE\WLOOWKH&RPSDQ\5HSUHVHQWDWLYHDUULYHVRQVLWH
+HVKRXOGDOVRQRWLI\6HFXULW\'HSDUWPHQWWHOHSKRQHRU


0DUFK
 %RRNRI5XOHV5HJXODWLRQV 3URFHGXUHVIRU&RQWUDFWRUV:RNLQJIRU%$3&2

 ),5($1'5,6.6

 )LUH

,QFDVHRIILUHGLDO³´DQGJLYHVORZO\DQGFOHDUO\WKHORFDWLRQDQGQDWXUH
RIWKHILUHFKHFNLQJFDUHIXOO\WKDWWKHPHVVDJHKDVEHHQUHFHLYHG7KHQLQIRUPWKH
QHDUHVW&RPSDQ\5HSUHVHQWDWLYHDQGDVNKLPZKDWIXUWKHUDFWLRQFDQEHWDNHQ

 $FWLRQ7R%H7DNHQ

:KHQ WKH ILUH VLUHQ VRXQGV &RQWUDFWRUV¶ YHKLFOHV PXVW SXOO RII &RPSDQ\
URDGZD\VVZLWFKRIIWKHLJQLWLRQDQGZDLWXQWLOWKHDOOFOHDUVLUHQLVJLYHQ$OOZRUN
PXVW VWRS DQG SRZHU WRROV SODQW DQG HTXLSPHQW VZLWFKHG RII  :RUN VKRXOG QRW
UHFRPPHQFHZLWKRXWWKHDSSURYDORIWKH&RPSDQ\5HSUHVHQWDWLYH$OOZDWHUPXVW
EH WXUQHG RII XQOHVV EHLQJ XVHG WR ILJKW WKH ILUH  &RQWUDFWRUV¶ SHUVRQQHO VKRXOG
PRYH IURP ILUH DUHD PDNLQJ VXUH WKDW WKH SDVVDJH RI YHKLFOHV RU SHUVRQV
FRQFHUQHGZLWKILUHILJKWLQJLVQRWREVWUXFWHG

 5LVNV$QG6PRNLQJ

,Q $ZDOL VPRNLQJ LV QRW SHUPLWWHG LQVLGH KRXVHV RU EXLOGLQJV GXULQJ RYHUKDXO RU
XQGHUFRQVWUXFWLRQ$³1R6PRNLQJ´VLJQPXVWEHHUHFWHGRXWVLGHIHQFHGEXLOGLQJ
VLWHVDQGVWRUDJHFRPSRXQGV6PRNLQJLVSHUPLWWHGRXWVLGHWKHVHDUHDV

 ,QWULQVLFDOO\6DIH&RPPXQLFDWLRQ'HYLFHV

7KH XVH RI PRELOHV WHOHSKRQHV SDJHUV EOHHSHU¶V UDGLRV LV VWULFWO\ IRUELGGHQ
LQVLGH WKH 5HILQHU\ 7DQN )DUPV 6LWUD DQG :KDUI RSHUDWLQJ DUHDV DQG DQ\ RWKHU
DUHDVDVGHVLJQDWHGXQOHVVVXFKHTXLSPHQWLVLQWULQVLFDOO\VDIHDQGDSSURYHGE\
WKHFRPSDQ\

 75$)),&5(*8/$7,216

 7UDIILF5HJXODWLRQV

7KH%DKUDLQ7UDIILFRUGLQDQFHDSSOLHVWRDOOWUDQVSRUWLQ%DKUDLQ,QSDUWLFXODUQR
SLFNXSWUXFNRUEXVPD\H[FHHGNSK

6SHHG/LPLWVDQG7UDIILF6LJQV

 $W³+$/7´RU³6723´VLJQVWKHYHKLFOHPXVWEHEURXJKWWRD)8//6723HYHQLI
WKHUHLVQRWUDIILFDURXQG2WKHUVLJQVVXFKDV³6/2:´³.((3/()7´DQG³12
3$66,1*´RU³29(57$.,1*´PXVWEHVWULFWO\REH\HG


0DUFK
 %RRNRI5XOHV5HJXODWLRQV 3URFHGXUHVIRU&RQWUDFWRUV:RNLQJIRU%$3&2

 6SHHG/LPLWVDUHDVIROORZV

6LWUD:KDUI7UHVWOH NSK

5HILQHU\ NSK

$ZDOL NSK

6LWUD&DXVHZD\ NSK

,Q DGGLWLRQ DQ\ WUDQVSRUW RSHUDWLQJ RQ &RPSDQ\ SURSHUW\ RU FDUU\LQJ RXW ZRUN
XQGHUFRQWUDFWIRUWKH&RPSDQ\PXVWREH\DOO&RPSDQ\WUDIILFUHJXODWLRQV

 3DUNLQJ

3DUNLQJ LV QRW SHUPLWWHG ZKHUH ³1R 3DUNLQJ´ VLJQV VR LQGLFDWH  3DUNLQJ LV QRW
DOORZHGDWEXVVWRSVRUZKHUHILUHDSSOLDQFHVZLOOEHREVWUXFWHG$YHKLFOHVKDOOQRW
EHOHIWXQDWWHQGHGZLWKLWVHQJLQHUXQQLQJ

:KHQ D YHKLFOH LV SDUNHG ZLWKLQ WKH 5HILQHU\ 6LWUD RU :KDUI DUHDV LW VKRXOG EH
NHSW XQORFNHG DQG WKH NH\ OHIW LQ WKH LJQLWLRQ VZLWFK WR HQDEOH LWV UHPRYDO LQ WKH
HYHQWRIDQHPHUJHQF\

 %URNHQ'RZQ9HKLFOHV

1RYHKLFOHPD\EHOHIWLQWKH5HILQHU\ZKLOVWLQDEURNHQGRZQFRQGLWLRQ,WPXVWEH
UHPRYHGRXWVLGHWKH5HILQHU\IHQFHLPPHGLDWHO\

 (QWU\$QG7UDQVSRUWDWLRQ2I/DUJH&UDQHV$QG(TXLSPHQW

:KHUH&RQWUDFWRUVDUHUHTXLUHGWRPRYHODUJHFUDQHVRUWUDQVSRUWHTXLSPHQWLQWR
RUPRYHIURPRQHORFDWLRQWRDQRWKHULQWKH5HILQHU\RURWKHURSHUDWLQJDUHDVDQG
WKHVL]HRIWKHORDGH[FHHGVDQ\RIWKHIROORZLQJGLPHQVLRQV

0D[LPXP+HLJKWRI)HHW

0D[LPXP:LGWKRI)HHW

0D[LPXP/HQJWKRI)HHW

WKHQ WKH &RQWUDFWRU PXVW QRWLI\ DQG REWDLQ DSSURYDO IURP WKH &RPSDQ\
5HSUHVHQWDWLYHDWLQWHUHVWSULRUWRDQ\PRYHPHQWEHLQJFDUULHGRXW


0DUFK
 %RRNRI5XOHV5HJXODWLRQV 3URFHGXUHVIRU&RQWUDFWRUV:RNLQJIRU%$3&2

 6,75$:+$5) 3$57,&8/$558/(6$1'5(48,5(0(176

 7UDIILF2Q&DXVHZD\

6KRXOG DQ\ &RQWUDFWRU¶V YHKLFOH EUHDNGRZQ ZKLOVW WUDYHOLQJ RQ WKH &RPSDQ\¶V
FDXVHZD\ WKH &RQWUDFWRU VKDOO DUUDQJH IRU WKH YHKLFOHV WR EH LPPHGLDWHO\ GUDZQ
RII WKH FDXVHZD\ LQWR D OD\E\H  6KRXOG UHSDLUV EH QHFHVVDU\ WDNH WKH YHKLFOH
FRPSOHWHO\ IURP WKH FDXVHZD\ 1R YHKLFOH RU HTXLSPHQW VKDOO EH SDUNHG RQ WKH
FDXVHZD\GXULQJWKHKRXUVRIGDUNQHVVIRUDQ\UHDVRQZKDWVRHYHU

 2QO\ UXEEHUWULHGYHKLFOHVVKDOOEHDOORZHGRQWKHFDXVHZD\DQGYHKLFOHVZDLWLQJ

XQORDGLQJ ZLOO UHPDLQ SDUNHG LQ WKH OD\E\HV  $W OHDVW RQH ODQH RI WKH URDGZD\
VKDOOEHNHSWRSHQDWDOOWLPHVDQGWKH&RQWUDFWRUVKDOOSURYLGHWZRFRPSHWHQWDQG
SURSHUO\DWWLUHGRUDQJHMDFNHWVDQGKDWV7UDIILF0DUVKDOVWRFRQWUROYHKLFXODUIORZ
LQDQRUGHUO\PDQQHU3URSHUZDUQLQJQRWLFHVDQGEDUULHUVVKDOOEHSURYLGHGE\WKH
&RQWUDFWRUDQGKHVKDOOFRPSO\IXOO\ZLWKUHJXODWLRQVFXUUHQWO\LQIRUFHLQ%DKUDLQ

 7KH&RQWUDFWRUVKDOOHQVXUHWKDWWKHHQWLUHFDXVHZD\LVNHSWFOHDQDWDOOWLPHVDQG
DQ\GDPDJHFDXVHGWRWKHURDG VXUIDFHOD\E\HVKDUGVKRXOGHURUUHIOHFWRUSRVWV
VKDOOEHPDGHJRRGSURPSWO\DWWKH&RQWUDFWRU¶VH[SHQVH

 6DIHW\(TXLSPHQW

$GHTXDWHOLIHMDFNHWV UDIWVVDIHW\EHOWVDQGILUVWDLGHTXLSPHQWPXVWEHVXSSOLHG
E\WKH&RQWUDFWRUWRWKHVDWLVIDFWLRQRIWKH &RPSDQ\5HSUHVHQWDWLYH

 6PRNLQJ

1RVPRNLQJLVSHUPLWWHGRQWKHZKDUIRULQDQ\&UDIWZLWKLQIHHWRIWKHZKDUI

 6DIHW\

7KH &RQWUDFWRU VKDOO WDNH VXFK PHDVXUHV DV PD\ EH QHFHVVDU\ WR HQVXUH WKH
VDIHW\RISHUVRQVRQWKHVLWH7KHVHPHDVXUHVVKDOOLQFOXGHFKHFNLQJWKHVWUHQJWK
DQG VHFXULW\ RI DOO SRQWRRQV ODXQFKHV VFDIIROGLQJ ODGGHUV HWF VXFK PHDVXUHV
QRWEHLQJOLPLWHGWRWKHPLQLPXPQHFHVVDU\WRFRPSO\ZLWKOHJDOREOLJDWLRQV

 0DULQH(TXLSPHQW

7KH &RQWUDFWRU VKDOO SURYLGH DFFHVV DQG DFFRPPRGDWLRQ IRU WKH &RPSDQ\
5HSUHVHQWDWLYHRQDQ\PDULQHHTXLSPHQWLQYROYHGLQWKHH[HFXWLRQRIWKHZRUN


0DUFK
 %RRNRI5XOHV5HJXODWLRQV 3URFHGXUHVIRU&RQWUDFWRUV:RNLQJIRU%$3&2

 3RUW$XWKRULW\5HJXODWLRQV

7KH&RQWUDFWRULVWRDELGHE\WKH3RUW$XWKRULW\5HJXODWLRQV6LWUDLQVRIDUDVWKH\

FRQWURO DQG UHJXODWH DQ\ RI WKH ZRUN RU WKH LQFLGHQWDO PRYHPHQWV RI SODQW
HTXLSPHQW ODERXU PDWHULDOV RU FUDIW  7KH &RQWUDFWRU VKDOO REWDLQ IURP WKH 3RUW
$XWKRULWLHVFRQFHUQHGVXFKSHUPLVVLRQVDVDUHUHTXLUHGIRUFDUU\LQJRXWWKHZRUN
RU DQ\ QHFHVVDU\ WHPSRUDU\ ZRUNV RII VKRUH RU RQVKRUH  +H VKDOO SURYLGH
PDLQWDLQDQGUHPRYHVXFKIHQGHUVOLJKWVIHQFHVEXR\VEHDFRQVUDGLRVHWFDV
DQG ZKHQ UHTXLUHG E\ WKH 3RUW $XWKRULW\¶V UHJXODWLRQV RU RQ WKH GLUHFWLRQ RI WKH
&RPSDQ\5HSUHVHQWDWLYH$OO7HQGHUVZLOOEHGHHPHGWRLQFOXGHIRUWKHZKROHRI
WKHVH RSHUDWLRQV  2Q FRPSOHWLRQ RI WKH ZRUN WKH &RQWUDFWRU VKDOO UHPRYH DOO
WHPSRUDU\ ZRUNV DQG OHDYH WKH VHD EHG IUHH IURP DQ\ REVWUXFWLRQV RU GHSRVLWV
DULVLQJIURPWKHZRUN

 6833/<2)0$7(5,$/6

 *HQHUDO

7KH IROORZLQJ SURFHGXUH DSSOLHV WR WKH PHWKRG RI PDWHULDO FRQWURO ZLWKLQ WKH
&RPSDQ\7KHGHWDLOVPD\YDU\EHWZHHQ'HSDUWPHQWVEXWWKHJHQHUDOSURFHGXUH
ZLOOEHVLPLODU

 &RPSDQ\0DWHULDOV$QG)RUP%3

*HQHUDOO\WKH&RPSDQ\ZLOOSURYLGHDOLVWRIPDWHULDOV)RUPIURPZKLFKWKH

&RQWUDFWRUVKDOOZULWHPDWHULDOVUHTXLVLWLRQV)RUP%3IRUZLWKGUDZDORIDOOWKH
PDWHULDOV IURP WKH &RPSDQ\ VWRUHV DW FRPPHQFHPHQW RI WKH ZRUN XQOHVV
RWKHUZLVHGLUHFWHG,QRUGHUWRH[SHGLWHDQGVLPSOLI\WKHFROOHFWLRQRIPDWHULDOVD
VHSDUDWH )RUP %3  VKRXOG EH SUHSDUHG IRU PDWHULDOV VWRUHG LQ GLVWLQFW RU
VHSDUDWH DUHDV HJ FRYHUHG DQG RSHQ VWRUDJH DQG IRU HDFK FKDUJH DFFRXQW
QXPEHU7KH&RPSDQ\¶VDSSRLQWHG5HSUHVHQWDWLYHDWLQWHUHVWLVDOVRDYDLODEOHWR
JLYH DGYLFH DQG JXLGDQFH WR WKH &RQWUDFWRU FRQFHUQLQJ SUHSDUDWLRQ RI PDWHULDO
UHTXLVLWLRQV  $OO PDWHULDO UHTXLVLWLRQV UHTXLUH WKH DSSURYDO VLJQDWXUH RI WKH
DSSURSULDWHFRPSDQ\5HSUHVHQWDWLYHDXWKRUL]HGE\WKH&RPSDQ\WRVLJQPDWHULDO
UHTXLVLWLRQV

 6FUHHQLQJ2I5HTXLVLWLRQV

7KH &RQWUDFWRU VKDOO WKHQ SUHVHQW WKH PDWHULDO UHTXLVLWLRQV WR WKH 6HQLRU
5HVHUYDWLRQV&OHUN,QYHQWRU\&RQWURO6HFWLRQ0DWHULDOV'HSDUWPHQWIRUVFUHHQLQJ
DW OHDVW  ZRUNLQJ GD\V SULRU WR WKH GDWH ZKHQ PDWHULDO LV UHTXLUHG  )ROORZLQJ
VFUHHQLQJ DQG LQ DQ\ FDVH QRW ODWHU WKDQ  GD\V DIWHU VFUHHQLQJ WKH &RQWUDFWRU
PXVW SUHVHQW WKH VFUHHQHG PDWHULDO UHTXLVLWLRQV WR WKH UHVSHFWLYH ZDUHKRXVH DV
LQGLFDWHGRQWKH0DWHULDOV5HTXLVLWLRQ)RUP


0DUFK
 %RRNRI5XOHV5HJXODWLRQV 3URFHGXUHVIRU&RQWUDFWRUV:RNLQJIRU%$3&2

 &ROOHFWLRQ2I0DWHULDOV

0DWHULDO IURP WKH FRYHUHGVWRUDJHJURXSZLOOWKHQQRUPDOO\EHPDGH DYDLODEOHIRU

FROOHFWLRQDQGORDGLQJE\WKH&RQWUDFWRUZLWKLQZRUNLQJGD\V0DWHULDOVIURPWKH
RSHQVWRUDJHJURXSZLOOQRUPDOO\EHPDGHDYDLODEOHZLWKLQZRUNLQJGD\

 8QDYDLODEOH,WHPV

:KHUHDQ\LWHPVDUHQRWHGRQWKHPDWHULDOUHTXLVLWLRQE\WKH6HQLRU5HVHUYDWLRQV
&OHUNDVµ1,/¶QLOVWRFNRUµ1$¶QRWDYDLODEOHWKHFRQWUDFWRUVKRXOGLPPHGLDWHO\
VHHNWKHDVVLVWDQFHRIWKH&RPSDQ\5HSUHVHQWDWLYHDWLQWHUHVW

 <HOORZ&RS\2I)RUP%3

$W WLPH RI LVVXH RIPDWHULDOWKH&RQWUDFWRUZLOOEHJLYHQWKH\HOORZFRS\RI )RUP

%3DQGWKLVLVWREHUHWXUQHGWRWKH&RPSDQ\5HSUHVHQWDWLYHDWLQWHUHVW

 &KHFNLQJ2I0DWHULDO

7KH&RQWUDFWRUVKDOOEHUHVSRQVLEOHIRUORDGLQJDOOPDWHULDOVWREHFROOHFWHGDQGIRU
WUDQVSRUWLQJ DQG RIIORDGLQJ DW WKH ZRUN VLWH RU IDEULFDWLRQ \DUG DV LV UHTXLUHG
&ROOHFWLRQ DQG FKHFNLQJ RI PDWHULDOV IURP VWRUHV VKRXOG EH KDQGOHG E\ D
FRPSHWHQW SHUVRQ ZKR PXVW EH DXWKRUL]HG WR UHFHLSW GHOLYHU\ RQ EHKDOI RI WKH
&RQWUDFWRU  $Q\ GHILFLHQFLHV PXVW EH UHSRUWHG LPPHGLDWHO\ WR WKH &RPSDQ\
5HSUHVHQWDWLYH7KH&RQWUDFWRUZLOOJHQHUDOO\EHUHTXLUHGWRGUDZDOOPDWHULDOVIRU
WKH SURMHFW SULRU WR GUDZ DOO PDWHULDOV IRU WKH SURMHFW SULRU WR FRPPHQFHPHQW RI
ZRUN$Q\RPLVVLRQVVKRUWDJHVZLOOEHFRUUHFWHGDWWKHWLPHDQGDQ\FODLPVDULVLQJ
IURPWKH &RQWUDFWRU¶VQHJOHFWLQFRPSO\LQJZLWKWKLVUHTXLUHPHQWZLOOEHUHMHFWHG

 6DIHNHHSLQJ2I0DWHULDO

7KH &RQWUDFWRU VKDOO DOVR EH UHVSRQVLEOH IRU VDIH NHHSLQJ RI DOO PDWHULDOV RQ VLWH
DQGDQ\GDPDJHGPDWHULDOPXVWEHUHSRUWHGWRWKH&RPSDQ\5HSUHVHQWDWLYHSULRU
WRWUDQVSRUWLQJIURPVWRUHV

 6\PEROV2Q/LVWV2I0DWHULDO

6\PEROVRQ0DWHULDO5HVHUYDWLRQ)RUP%3EULHIO\DUHDVIROORZV

3UHSDUHIRUP%3IRU6WRFN0DWHULDO

)LHOG ,WHPOHVVWKDQKDOIXQLWRILVVXH:KHQXQDYDLODEOHLQ)LHOGSUHSDUHD
VLQJOH )RUP %3 IRU VXFK LWHPV WR EH FRXQWHUVLJQHG E\ &RPSDQ\
5HSUHVHQWDWLYH

))6RS6WRFN

,WHPVWREHIDEULFDWHGLQ&RPSDQ\:RUNVKRSV&RQWUDFWRUWRLQLWLDWHE\
D&RPSDQ\DSSURYHG)RUP%3DQGFROOHFWRQIDEULFDWLRQ


0DUFK
 %RRNRI5XOHV5HJXODWLRQV 3URFHGXUHVIRU&RQWUDFWRUV:RNLQJIRU%$3&2

)) )DEULFDWH IURP LWHPV DOUHDG\ GUDZQ PD\ UHTXLUH )RUP %3 IRU
&RPSDQ\IDEULFDWLRQ

 $GGLWLRQDO0DWHULDOV

$GGLWLRQDOPDWHULDOVVKDOOEHKDQGOHGDVRXWOLQHGKHUHLQH[FHSW

D )RUP %3  IRU DGGLWLRQDO PDWHULDO LQFRUSRUDWLQJ VWRFN QXPEHUV ZKHUH
SRVVLEOH VKDOO EH ZULWWHQ E\ WKH &RQWUDFWRU DQG JLYHQ WR WKH &RPSDQ\
5HSUHVHQWDWLYHIRUDSSURYDOZRUNLQJGD\VEHIRUHWKHGDWHUHTXLUHG

E 7KH&RQWUDFWRUVKDOOFKHFNWKHGUDZLQJVDQGDHULDOVVXSSOLHGWRDVFHUWDLQDQ\
VKRUWDJHVRIPDWHULDOV

F ,IDGGLWLRQDOZRUNLVDXWKRUL]HGWKH&RQWUDFWRUVKDOODVFHUWDLQZKDWDGGLWLRQDO
PDWHULDOVDUHUHTXLUHG

G ,Q ERWK WKH DERYH FDVHV WKH &RPSDQ\ 5HSUHVHQWDWLYH VKDOO EH LQIRUPHG LQ
ZULWLQJ RI DGGLWLRQDO PDWHULDO UHTXLUHPHQWV  1R H[WUD FRPSHQVDWLRQ ZLOO EH
DOORZHG IRU GHOD\V FDXVHG E\ ODFN RI PDWHULDOV ZKLFK FRXOG KDYH EHHQ
GHOLYHUHGRQVLWHLIFDUHIXOFKHFNLQJKDGEHHQFDUULHGRXW

 ,WHPV1RW6KRZQ2Q7KH/LVW2I0DWHULDOV

7KH &RQWUDFWRU LV WR SUHSDUH )RUP %3  WR EH VLJQHG E\ WKH &RPSDQ\
5HSUHVHQWDWLYH IRU KLV UHTXLUHPHQWV RI VXQGU\ LWHPV ZKLFK DUH QRW QRUPDOO\
VKRZQRQWKHOLVWRIPDWHULDOV&ROOHFWLRQRIWKHVHPDWHULDOVLVWREHFDUULHGRXWDV
RXWOLQHGKHUHLQ

 6XUSOXV0DWHULDOV

,PPHGLDWHO\ SULRU WR FRPSOHWLRQ RI WKH ZRUN WKH &RQWUDFWRU VKDOO VXSSO\ D OLVW RI
VXUSOXVPDWHULDOVWRWKH&RPSDQ\5HSUHVHQWDWLYHZKRZLOOKDYHWKHPDWHULDO)RUP
%3  SUHSDUHG DQG JLYH GLVSRVDO LQVWUXFWLRQV  ,W LV WKH UHVSRQVLELOLW\ RI WKH
&RQWUDFWRU WR WUDQVSRUW DQG RIIORDG VXUSOXV DQG VFUDS PDWHULDOV JHQHUDOO\ DW WKH
6DOYDJHDQG'LVSRVDOVFRPSRXQG5HILQHU\

 0DWHULDO*DWH3DVVHV

:KHUH RWKHU &RPSDQ\ DSSURYHG GRFXPHQWDWLRQ LV QRW SURYLGHG WKH &RQWUDFWRU
VKDOOSUHSDUHDQGREWDLQDSSURYDORID)RUP± 9HKLFOH0DWHULDO*DWH3DVVIRU
LWHPVWREHWDNHQRXWRI6LWUD:KDUIRUWKH5HILQHU\

 %XON\0DWHULDO,VVXH 2U5HWXUQ

/DUJHTXDQWLW\RUEXON\PDWHULDOVDUHRQO\LVVXHGRUDFFHSWHGIRUUHWXUQGXULQJWKH
&RPSDQ\¶VQRUPDOZRUNLQJKRXUVGXULQJ6DWXUGD\± :HGQHVGD\


0DUFK
 %RRNRI5XOHV5HJXODWLRQV 3URFHGXUHVIRU&RQWUDFWRUV:RNLQJIRU%$3&2

 (QWU\7R&RPSDQ\:DUHKRXVH

1R &RQWUDFWRU¶V 3HUVRQQHO DUH DOORZHG HQWU\ LQWR WKH &RPSDQ\¶V :DUHKRXVH RU
6WRUDJH IDFLOLWLHV ZLWKRXW SULRU SHUPLVVLRQ IURP WKH DSSURSULDWH 0DWHULDOV
'HSDUWPHQW3HUVRQQHO

 7(50,1$7,21$1':$51,1*6

 9LRODWLRQ$QG%UHDFK2I5XOHV5HJXODWLRQV$QG3URFHGXUHV

,Q7KHHYHQWRIYLRODWLRQRUEUHDFKRIWKHVH5XOHV5HJXODWLRQDQG 3URFHGXUHVWKH
&RPSDQ\ VKDOO KDYH WKH ULJKW WR WHUPLQDWH DQ\ DQG DOO DJUHHPHQWV UHODWHG WR WKH
MRE DQG KROG WKH &RQWUDFWRU OLDEOH IRU DQ\ DQG DOO GDPDJHV UHVXOWLQJ WKHUH IURP
7KH &RPSDQ\ VKDOO DWWHPSW WR JLYH &RQWUDFWRU QRWLFH WR FRUUHFW RU UHPHG\ WKH
YLRODWLRQ RU EUHDFK GHSHQGLQJ RQ WKH QDWXUH DQG VHULRXVQHVV RI WKH YLRODWLRQ RU
EUHDFK

 63(&,$/5(48,5(0(176

 1RQ6PRNLQJ3ROLF\

)RU VDIHW\ UHDVRQV LQ FHUWDLQ DUHDV VPRNLQJ LV HLWKHU SURKLELWHG RU OLPLWHG WR
GHILQHG DUHDV  ,Q DGGLWLRQ WKH &RPSDQ\ RSHUDWHV D QRQVPRNLQJ SROLF\ DQG DOO
&RQWUDFWRUV¶VWDIIPXVWFRPSO\ZLWKWKHUHTXLUHPHQWVRIWKLVSROLF\ZKHQZRUNLQJLQ
&RPSDQ\2SHUDWLQJ$UHDV

D 6PRNLQJLVSURKLELWHGWKURXJKRXWWKH&RPSDQ\LQVLGHEXLOGLQJV

E 6PRNLQJ LV SHUPLWWHG RQO\ LQ GHVLJQDWHG VPRNLQJ VKHOWHUV ORFDWHG RXWVLGH
&RPSDQ\ %XLOGLQJV RU LQ DUHDV RI &RQWUDFWRUV¶ FRPSRXQGV ZKHUH D YDOLG
VPRNLQJSHUPLWLVGLVSOD\HG

F 6PRNLQJLVQRWSHUPLWWHGLQ&RPSDQ\EXVHV

 )RU DOO HPSOR\HHV RYHU WKH DJH RI  WKH &RQWUDFWRU PXVW SURYLGH DQQXDOO\
HYLGHQFH WKDW VXFK HPSOR\HHV KDYH EHHQ PHGLFDOO\ FKHFNHG E\ WKH 0LQLVWU\ RI
+HDOWKDQGFHUWLILHGILWWRZRUNLQWKHSRVLWLRQSURSRVHG


0DUFK
 %RRNRI5XOHV5HJXODWLRQV 3URFHGXUHVIRU&RQWUDFWRUV:RNLQJIRU%$3&2

 +($/7+$1'6$)(7<,1'8&7,21

,W LV D &RPSDQ\ UHTXLUHPHQW WKDW DOO &RQWUDFWRU¶V VXSHUYLVRUV DQG ODERXU VKDOO
XQGHUJR+HDOWK 6DIHW\,QGXFWLRQWUDLQLQJSULRUWREHLQJJUDQWHG6HFXULW\EDGJHV
IRU HQWU\ WR WKH &RPSDQ\¶V 2SHUDWLQJ $UHDV QRWZLWKVWDQGLQJ WKHLU KDYLQJ
VXFFHVVIXOO\FRPSOHWHGDWUDGHWHVWLIUHTXLUHG7KH&RQWUDFWRULVWRDOORZIRUDQ\
H[SHQVH LQFXUUHG LQ HQVXULQJ KLV HPSOR\HHV XQGHUJR WKH ,QGXFWLRQ WUDLQLQJ LQKLV
SULFHV


0DUFK