6HFWLRQ+RXVLQJ&KRLFH9RXFKHU3URJUDP0RGHO'ZHOOLQJ/HDVH
1RWLFH7KLVPRGHOGZHOOLQJOHDVHLVPDGHDYDLODEOHIRURZQHUVZKRGRQRW
XWLOL]HDVWDQGDUGOHDVHIRUPIRUXQDVVLVWHGWHQDQWV
3$57,(67KHSDUWLHVWRWKLVOHDVHDUH
WKH
´2ZQHUµ
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBDQG
WKH
´7HQDQWµ
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
+286(+2/'0(0%(567KHRQO\PHPEHUVRIWKHKRXVHKROGZKRVKDOO
UHVLGHLQWKHXQLWDUHWKRVHVSHFLILFDOO\QDPHGRQWKH+RXVLQJ$VVLVWDQFH3D\PHQW
&RQWUDFWEHWZHHQWKH2ZQHUDQGWKH+RXVLQJ$JHQF\LQDFFRUGDQFHZLWKWKH
LQIRUPDWLRQVXSSOLHGE\WKHIDPLO\KRXVHKROGPHPEHUVDGGHGE\ELUWKDGRSWLRQRU
FRXUWRUGHUHGFXVWRG\DQGWKRVHDVPD\EHKHUHDIWHUDSSURYHGLQZULWLQJE\WKH
2ZQHUDQGWKH+RXVLQJ$JHQF\
3523(57<7KH2ZQHUUHQWVWKHIROORZLQJXQLWWRWKH7HQDQW
1XPEHU
6WUHHW
$SDUWPHQW
&LW\7RZQ
=LS&RGH
87,/,7,(6$33/,$1&(63D\PHQWRIXWLOLWLHVDQGWKHSURYLVLRQRI
DSSOLDQFHVLVWKHUHVSRQVLELOLW\RIHLWKHUWKH2ZQHURU7HQDQWDVLQGLFDWHGRQWKH
IROORZLQJFKDUW
87,/,7,(6
:DWHU
6HZDJHGLVSRVDO
+HDW
+RWZDWHU
2ZQHU
7HQDQW
(OHFWULFLW\
&RRNLQJIXHO
&RPPRQDUHDV
;
27+(5
7UDVKUHPRYDO
6WRYH
5HIULJHUDWRU
$LU
FRQGLWLRQLQJ
/DZQFDUH
6QRZUHPRYDO
2WKHUBBBBBBBB
BBBBBBBBBBBBBB
BBBBBBBB
2ZQHU
7HQDQW
;
,QPRVWLQVWDQFHVWKHODQGORUGPXVWSD\IRUZDWHUDQGVHZHUFKDUJHV2QO\LIWKHODQGORUGKDVPHWDOOWKH
UHTXLUHPHQWVRI0*/F†VHSDUDWHPHWHULQVWDOODWLRQRIORZIORZFRQVHUYDWLRQGHYLFHVFHUWDLQ
ELOOLQJDUUDQJHPHQWVHWFFDQWKHWHQDQWEHKHOGUHVSRQVLEOHIRUZDWHUDQGVHZHUFKDUJHV
6HFWLRQ+RXVLQJ&KRLFH9RXFKHU3URJUDP0RGHO'ZHOOLQJ/HDVH
5(177KHWRWDO5HQWWR2ZQHULVSHUPRQWK
7KH7HQDQWUHQWLVSHUPRQWKGXHRQRUEHIRUHWKHILUVWGD\RIHDFK
PRQWK7HQDQWUHQWLVGHWHUPLQHGE\WKH+RXVLQJ$JHQF\LQDFFRUGDQFHZLWK+8'
UHJXODWLRQVDQGUHTXLUHPHQWVDQGLVVXEMHFWWRFKDQJHGXULQJWKHWHUPRIWKHOHDVH
$Q\FKDQJHLQWKH7HQDQWUHQWZLOOEHVWDWHGLQDZULWWHQQRWLFHE\WKH+RXVLQJ
$JHQF\WRWKH2ZQHUDQG7HQDQWWKDWLQFOXGHVWKHQHZDPRXQWDQGWKHHIIHFWLYHGDWH
RIWKHFKDQJH
7KHPRQWKO\KRXVLQJDVVLVWDQFHSD\PHQWSDLGWRWKH2ZQHUE\WKH+RXVLQJ$JHQF\
LVWKHGLIIHUHQFHEHWZHHQWKH5HQWWR2ZQHUDQGWKH7HQDQWUHQW
7(507KHLQLWLDOWHUPRIWKLVOHDVHLVIRUDSHULRGRIBBBBBPRQWKV
EHJLQQLQJRQBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBDQGHQGLQJ
RQBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBXQOHVVWKHUHLVDQHDUOLHU
WHUPLQDWLRQSXUVXDQWWRWKHWHUPVDQGFRQGLWLRQVRIWKLV/HDVHRU7HQDQF\
$GGHQGXP7KLV/HDVHZLOODXWRPDWLFDOO\VHOIH[WHQGDWWKHHQGRIWKHLQLWLDODQG
HDFKVXFFHVVLYHOHDVHWHUPXQGHUWKHVDPHWHUPVDQGFRQGLWLRQVDVWKHLQLWLDO
/HDVHH[FHSWWKDWLIWKHLQLWLDOWHUPLVIRUOHVVWKDQRQH\HDUDOOVXEVHTXHQWWHUPV
ZLOOEHIRURQH\HDUSHULRGVDQGVKDOOFRQWLQXHLQIXOOIRUFHDQGHIIHFWXQOHVVDQG
XQWLORWKHUZLVHWHUPLQDWHGE\
D WKH2ZQHURU7HQDQWDVSURYLGHGLQ6HFWLRQEHORZRU
E PXWXDODJUHHPHQWGXULQJWKHLQLWLDORUH[WHQGHGWHUPRIWKH/HDVHRU
F WKH+RXVLQJ$JHQF\EHFDXVHWKH+$3&RQWUDFWKDVEHHQWHUPLQDWHG
7(1$17)$0,/<2%/,*$7,2167KHIDPLO\VKDOO
D 3D\UHQWZKHQGXH
E 0DLQWDLQWKHXQLWLQDFOHDQDQGVDQLWDU\FRQGLWLRQ
F 1RWDOWHUWKHXQLWZLWKRXWWKH2ZQHU·VSHUPLVVLRQLQFOXGHVFKDQJLQJRUDGGLQJ
ORFNV
G 1RWGDPDJHWKHXQLWFRPPRQDUHDVRUJURXQGV
H %HUHVSRQVLEOHDQGSD\IRUGDPDJHVFDXVHGE\WKHIDPLO\RUDQ\JXHVWRIWKH
KRXVHKROG
I 1RWHQJDJHLQRUSHUPLWDQ\XQODZIXODFWLYLW\LQWKHXQLWFRPPRQDUHDRU
JURXQGV
J 1RWPDNHRUSHUPLWJXHVWVWRPDNHQRLVHVRUDFWVZKLFKGLVWXUEWKHTXLHW
VHFXULW\RUZHOIDUHRIRWKHURFFXSDQWV
K 5HPRYHDOOSHUVRQDOSURSHUW\ZKHQPRYLQJRXWRIXQLWOHDYHWKHGZHOOLQJXQLW
DVFOHDQDVZKHQWKHWHQDQF\EHJDQUHDVRQDEOHZHDUDQGWHDUH[FHSWHGDQG
UHWXUQNH\VSURPSWO\WR2ZQHU
L 8SRQUHDVRQDEOHQRWLFHDOORZ2ZQHUWRHQWHUGZHOOLQJXQLWLQRUGHUWRLQVSHFW
WKHSUHPLVHVWRPDNHUHSDLUVWKHUHWRRUWRVKRZXQLWWRDSURVSHFWLYHWHQDQWRU
SXUFKDVHU7KH7HQDQWZLOOQRWEHXQUHDVRQDEOHLQGHQ\LQJHQWU\7KH2ZQHU
PD\DOVRHQWHUXSRQWKHSUHPLVHVZLWKRXWSULRUFRQVHQWLILWDSSHDUVWRKDYH
EHHQDEDQGRQHGE\WKH7HQDQWRULQWKHFDVHRIDQHPHUJHQF\
2:1(52%/,*$7,216 7KH2ZQHUVKDOO
D 0DLQWDLQWKHGZHOOLQJXQLWHTXLSPHQWDQGRZQHUVXSSOLHGDSSOLDQFHVDQG
FRPPRQDUHDVDQGIDFLOLWLHVWRSURYLGHGHFHQWVDIHDQGVDQLWDU\KRXVLQJLQ
DFFRUGDQFHZLWK2ZQHU·VREOLJDWLRQVXQGHU+8'·V+RXVLQJ4XDOLW\6WDQGDUGV
IRUWKH6HFWLRQ+RXVLQJ&KRLFH9RXFKHUSURJUDPDQGZLWK'+&'·V6HFWLRQ
,QVSHFWLRQ5HTXLUHPHQWVLQFOXGLQJWKHSURYLVLRQRIDOOWKHVHUYLFHV
6HFWLRQ+RXVLQJ&KRLFH9RXFKHU3URJUDP0RGHO'ZHOOLQJ/HDVH
PDLQWHQDQFHDQGXWLOLWLHVVHWIRUWKLQWKH/($6(2ZQHUVKDOOPDNHUHSDLUV
ZLWKLQDUHDVRQDEOHSHULRGRIWLPH
E 3URYLGHUHDVRQDEOHQRWLFHWRWKH7HQDQWSULRUWRLQVSHFWLQJRUUHSDLULQJWKHXQLW
,IHPHUJHQF\HQWU\LVPDGHWKH7HQDQWVKDOOEHQRWLILHG
6(&85,7<'(326,77KHWRWDODPRXQWRIWKHVHFXULW\GHSRVLWZKLFKPD\
EHFROOHFWHGLQLQFUHPHQWVLVBBBBBBBBBBBB7KHRZQHUZLOOFRPSO\ZLWK
0DVVDFKXVHWWV*HQHUDO/DZ&KDSWHUUHJDUGLQJWKHDFFHSWDQFHRIDVHFXULW\
GHSRVLWIURPD7HQDQWDQGVKDOOQRWFROOHFWDVHFXULW\GHSRVLWZKLFKLVPRUHWKDQ
RQHPRQWK·VFRQWUDFWUHQW$IWHUWKH7HQDQWKDVPRYHGIURPWKHGZHOOLQJXQLWWKH
2ZQHUPD\VXEMHFWWR6WDWHDQGORFDOODZXVHWKHVHFXULW\GHSRVLWLQFOXGLQJDQ\
LQWHUHVWRQWKHGHSRVLWDVUHLPEXUVHPHQWIRUDQ\XQSDLGWHQDQWUHQWRURWKHU
DPRXQWVZKLFKWKH7HQDQWRZHVXQGHUWKH/HDVH7KH2ZQHUZLOOJLYHWKH7HQDQWD
ZULWWHQOLVWRIDOOLWHPVFKDUJHGDJDLQVWWKHVHFXULW\GHSRVLWDQGWKHDPRXQWRIHDFK
LWHP$IWHUGHGXFWLQJWKHDPRXQWXVHGDVUHLPEXUVHPHQWWRWKH2ZQHUWKH2ZQHU
VKDOOSURPSWO\UHIXQGWKHIXOODPRXQWRIWKHEDODQFHWRWKH7HQDQW%\ODZWKH
2ZQHULVUHTXLUHGWRSURYLGHD6WDWHPHQWRI&RQGLWLRQZKHQDVHFXULW\GHSRVLWLV
FROOHFWHG
127,&(6 $OOQRWLFHVUHTXLUHGE\WKLV/HDVHDQG$GGHQGXPVKDOOEHLQ
ZULWLQJDQGVKDOOEHGHOLYHUHGWRWKHRWKHUSDUW\E\PDLOLQJRUKDQGGHOLYHU\
1RWLFHVVKDOOEHVHQWWRWKHIROORZLQJDGGUHVVHV
7RWKH2ZQHU
7RWKH7HQDQW
7RDWKLUGSDUW\GHVLJQDWHG
E\WKH7HQDQW
$ 7HUPLQDWLRQRIWHQDQF\E\7HQDQW
'XULQJWKHLQLWLDOWHUPRIWKHOHDVHWKH7HQDQWPD\WHUPLQDWHWKHWHQDQF\
RQO\E\PXWXDODJUHHPHQWZLWKWKH2ZQHURUZKHQWKHUHLVJRRGFDXVH
GHPRQVWUDWHGE\DYHULILDEOHWKUHDWWRWKHOLIHRUVDIHW\RIDKRXVHKROG
PHPEHUVXFKDVYLFWLPVRIKDWHFULPHVUDSHVH[XDODVVDXOWGRPHVWLF
YLROHQFHRUVWDONLQJ
7KH7HQDQWPD\HOHFWQRWWRH[WHQGWKHOHDVHDWWKHHQGRIWKHLQLWLDOWHUPRU
DWWKHHQGRIDQ\VXEVHTXHQWWHUPE\JLYLQJWKH2ZQHUZULWWHQQRWLFHRIWKH
HOHFWLRQQRWWRH[WHQG6XFKQRWLFHPXVWEHJLYHQDWOHDVWWKLUW\GD\VRU
DUHQWDOSHULRGLQDGYDQFHRIWKHODVWGD\RIWKHOHDVHWHUPZKLFKHYHULV
JUHDWHU
$IWHUWKHLQLWLDOWHUPRIWKHOHDVH7HQDQWPD\WHUPLQDWHWKHOHDVHIRURWKHU
JRRGFDXVHE\JLYLQJ2ZQHUDGYDQFHZULWWHQQRWLFHDWOHDVWGD\VRUD
UHQWDOSHULRGLQDGYDQFHZKLFKHYHULVJUHDWHU2WKHUJRRGFDXVHPD\
LQFOXGHEXWLVQRWOLPLWHGWRWKHIROORZLQJ
L$YHULILDEOHHGXFDWLRQDOHPSOR\PHQWRUKHDOWKUHDVRQKHDOWKUHDVRQ
LQFOXGHVWKHQHHGWREHFORVHUWRIDPLO\PHPEHUVZKRDUHLOORUGLVDEOHGDQG
QHHGDVVLVWDQFH
LL$FKDQJHLQKRXVHKROGFRPSRVLWLRQUHVXOWLQJLQDIDPLO\EHLQJHLWKHU
RYHUKRXVHGRURYHUFURZGHGDVGHILQHGE\+RXVLQJ4XDOLW\6WDQGDUGV
LLL9HULILDEOHGRPHVWLFYLROHQFHGDWLQJYLROHQFHVWDONLQJRUEHLQJDYLFWLPRU
ZLWQHVVWRYLROHQWFULPHUHVXOWLQJLQWKHQHHGWREHUHORFDWHG
6HFWLRQ+RXVLQJ&KRLFH9RXFKHU3URJUDP0RGHO'ZHOOLQJ/HDVH
%7HUPLQDWLRQRIWHQDQF\E\2ZQHU
'XULQJWKHLQLWLDODQGDQ\VXEVHTXHQWWHUPRIWKHOHDVHWKH2ZQHUPD\
WHUPLQDWHWKHOHDVHRQO\IRUWKHJURXQGVVSHFLILHGLQWKH7HQDQF\
$GGHQGXP7KH2ZQHUPXVWJLYHWKH7HQDQWDWOHDVWIRXUWHHQGD\V
QRWLFHIRUQRQSD\PHQWRIUHQWDQGDWOHDVWWKLUW\GD\VQRWLFHIRU
WHUPLQDWLRQEDVHGRQRWKHUJURXQGV7KHQRWLFHPXVWVSHFLI\WKHJURXQGV
IRUWHUPLQDWLRQ1RWZLWKVWDQGLQJWKHIRUHJRLQJWKH2ZQHUPD\LPPHGLDWHO\
WHUPLQDWHWKLV/HDVHIRUDQ\DFWRUFRQGXFWRIWKH7HQDQWKRXVHKROG
PHPEHURUJXHVWZKLFKWKHUHE\HQWLWOHVWKH2ZQHUWRHYLFWRUHQMRLQWKH
7HQDQWXQGHU0DVVDFKXVHWWV*HQHUDO/DZV&KDSWHU6HFWLRQE\D
ZULWWHQQRWLFHVSHFLI\LQJWKHJURXQGVWKHUHIRUH
7KH2ZQHUPD\HOHFWQRWWRH[WHQGWKHOHDVHDWWKHHQGRIWKHLQLWLDOWHUPRU
DWWKHHQGRIDQ\VXEVHTXHQWWHUPE\JLYLQJWKH7HQDQWZULWWHQQRWLFHRIWKH
HOHFWLRQQRWWRH[WHQG7KH2ZQHUQHHGQRWKDYHDQGQHHGQRWVSHFLI\DQ\
JURXQGVIRUVXFKHOHFWLRQ6XFKQRWLFHPXVWEHJLYHQDWOHDVWGD\VRUD
UHQWDOSHULRGLQDGYDQFHRIWKHODVWGD\RIWKHOHDVHWHUPZKLFKHYHULV
JUHDWHU
27+(5/($6(3529,6,216
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
(17,5($*5((0(17
7KHDWWDFKHG7HQDQF\$GGHQGXP)RUP+8'
$LVKHUHE\LQFRUSRUDWHGKHUHLQDQGPDGHDSDUWRIWKLV/HDVHDJUHHPHQW,I
WKHUHLVDQ\FRQIOLFWEHWZHHQDQ\RIWKHSURYLVLRQVRIWKLV/HDVHDQGWKHSURYLVLRQV
RIWKH7HQDQF\$GGHQGXPWKHSURYLVLRQVRIWKH7HQDQF\$GGHQGXPVKDOOSUHYDLO
7KH7HQDQF\$GGHQGXPLVUHTXLUHGE\+8'DQGFDQQRWEHDOWHUHG7KLV/HDVH
ZLWKDWWDFKHG7HQDQF\$GGHQGXPFRQVWLWXWHVWKHHQWLUHDJUHHPHQWEHWZHHQWKH
SDUWLHV
6,*1$785(6
3ULQWRU7\SH1DPHRI7HQDQW
3ULQWRU7\SH1DPHRI2ZQHU
6LJQDWXUH'DWH 6LJQDWXUH'DWH
3ULQWRU7\SH1DPHDQG7LWOHRI6LJQDWRU\
6HFWLRQ+RXVLQJ&KRLFH9RXFKHU3URJUDP0RGHO'ZHOOLQJ/HDVH