6$)(7,0%(5+$59(67,1*
3UHSDUHGE\
LQFRRSHUDWLRQZLWK
1+7LPEHU+DUYHVWLQJ&RXQFLO
1+7LPEHUODQG2ZQHUV$VVRFLDWLRQ
81+7KRPSVRQ6FKRRORI$SSOLHG6FLHQFHV
81+&RRSHUDWLYH([WHQVLRQ)RUHVWU\,QIRUPDWLRQ&HQWHU
)XQGVIRUWKLVSXEOLFDWLRQKDYHEHHQSURYLGHGE\WKH86'$)RUHVW6HUYLFH
DQG1+'HSDUWPHQWRI5HVRXUFHVDQG(FRQRPLF'HYHORSPHQW
'LYLVLRQRI)RUHVWVDQG/DQGVLQUHVSRQVHWRWKH-DQXDU\LFHVWRUP
5RTKPI
81+&RRSHUDWLYH([WHQVLRQSURJUDPVDQGSROLFHVDUHFRQVLVWHQWZLWKSHUWLQHQW
)HGHUDODQG6WDWHODZVDQGUHJXODWLRQVRQQRQGLVFULPLQDWLRQUHJDUGLQJUDFHFRORU
QDWLRQDORULJLQVH[VH[XDORULHQWDWLRQDJHGLVDELOLW\RUYHWHUDQ¶VVWDWXV&ROOHJHRI
/LIH6FLHQFHVDQG$JULFXOWXUH&RXQW\*RYHUQPHQWV1+'HSWRI5HVRXUFHVDQG
(FRQRPLF'HYHORSPHQW'LYLVLRQRI)RUHVWVDQG/DQGV1+)LVKDQG*DPH86
'HSWRI$JULFXOWXUHDQG86)LVKDQG:LOGOLIH6HUYLFHFRRSHUDWLQJ
"
35()$&(
7KLVJXLGHLVQRWDVXEVWLWXWHIRUSURSHU6DIHW\7UDLQLQJ,WLV
PHDQWDVDUHIHUHQFHRQO\
6DIHW\LVWKHUHVSRQVLELOLW\RIHYHU\RQHDQGVKRXOGQRWEHSODFHG
VROHO\RQHLWKHUPDQDJHPHQWRUHPSOR\HHV0DQDJHPHQWKDV
WKHUHVSRQVLELOLW\WRSURYLGHDVDIHZRUNHQYLURQPHQWDQGWR
SURSHUO\WUDLQHPSOR\HHV(PSOR\HHVKDYHWKHUHVSRQVLELOLW\WR
FRPSO\ZLWKDOOUXOHVDQGUHJXODWLRQVLVVXHGXQGHU26+$
7KLV7UDLQLQJ*XLGHZDVRULJLQDOO\SXEOLVKHGE\WKH)RUHVW
,QGXVWU\6DIHW\DQG7UDLQLQJ$OOLDQFH,QF),67$
5KLQHODQGHU:LVFRQVLQLQ,WLVUHSULQWHGZLWKSHUPLVVLRQ
IURP),67$,WKDVEHHQUHYLHZHGE\WKH2FFXSDWLRQDO6DIHW\
DQG+HDOWK$GPLQLVWUDWLRQ26+$IRUXVHLQORJJLQJWUDLQLQJ
7KH*XLGH'RHV1RW1HFHVVDULO\5HIOHFW7KH9LHZV2U
3ROLFLHV2I7KH86'HSDUWPHQWRI/DERU1RU'RHV
0HQWLRQRI7UDGH1DPHV&RPPHUFLDO3URGXFWV2U
2UJDQL]DWLRQV&RQVWLWXWH$Q(QGRUVHPHQW7KHUHRI
,Q-DQXDU\1HZ(QJODQGZDVKLWZLWKDQLFLQJHYHQW
ZKLFKUHVXOWHGLQDFUHVRIVWRUPGDPDJHGIRUHVWDQG
URDGVLGHWUHHVVSUHDGDFURVVFRXQWLHV7KHGDPDJHPRVWO\
EURNHQWRSVDQGEHQWRYHUVWHPVFUHDWHGH[WUHPHO\KD]DUGRXV
FRQGLWLRQVIRUWKRVHDWWHPSWLQJWRVDOYDJHWLPEHUDQGFOHDU
URDGZD\V
,
7$%/(2)&217(176
3$*(
3UHIDFH ,
3URWHFWLQJ<RXUVHOIDQG2WKHUV 3HUVRQDO3URWHFWLYH(TXLSPHQW /LIWLQJ :RUNLQJLQD6DIH(QYLURQPHQW (QYLURQPHQWDO&RQGLWLRQV 3ODQQLQJ2UJDQL]LQJDQG3UHSDULQJWKH-REVLWH 0DLQWDLQLQJ7KH&KDLQ6DZ &KDLQ6DZ6KDUSHQLQJ &KDLQ6DZ6DIHW\ )HOOLQJ7UHHV )HOOLQJ3UREOHP7UHHV /LPELQJDQG%XFNLQJ /LPELQJDQG7RSSLQJ %XFNLQJDWWKH6WXPS %XFNLQJDWWKH/DQGLQJ 6NLGGHU2SHUDWLRQV 6DIHW\,QVWUXFWLRQVIRU&KRNHU6HWWLQJ 6DIHW\,QVWUXFWLRQVIRU6NLGGHUV 7$%/(2)&217(176
3$*(
3LOLQJ'HFNLQJ ,QVWUXFWLRQVIRU.QXFNOHERRP (TXLSPHQW0DLQWHQDQFH 0DLQWDLQLQJWKH6NLGGHU 0DLQWDLQLQJ3LOLQJ(TXLSPHQW &DXVHVRI)LUH )RU0RUH,QIRUPDWLRQ )HOOHU%XQFKHU6DIHW\ *ORVVDU\ 3527(&7,1*<2856(/)$1'27+(56
3527(&7,1*<2856(/)$1'27+(56
(TXLS<RXUVHOI$QG:HDU7KH$SSURSULDWH3HUVRQDO
3URWHFWLYH(TXLSPHQW33()RU<RXU-RE
(\H3URWHFWLRQ
+HDG3URWHFWLRQ
+HDULQJ3URWHFWLRQ
+DQG3URWHFWLRQ
)RRW3URWHFWLRQ
/HJ3URWHFWLRQ
'+DQGOHDQGFDUU\DFKDLQVDZLQDPDQQHUWKDWSURWHFWV
\RXUVHOIDQGRWKHUVIURPLQMXU\
'0RXQWDQGGLVPRXQWHTXLSPHQWXVLQJWKHWKUHHSRLQW
FRQWDFWPHWKRGLQRUGHUWRSUHYHQWSHUVRQDOLQMXU\
'5HFRJQL]HGDQJHU]RQHVE\NHHSLQJVDIHGLVWDQFHVEHWZHHQ
RWKHUVHTXLSPHQWDQG\RXGXULQJFXWWLQJVNLGGLQJ
GHFNLQJSLOLQJDQGORDGLQJRSHUDWLRQV
'5HFRJQL]HWKHLPSRUWDQFHRISURSHUOLIWLQJFDUU\LQJDQG
ERG\SRVLWLRQLQJWHFKQLTXHVWRDYRLGEDFNLQMXULHV
'5HFRJQL]HV\PSWRPVRISRWHQWLDOO\KD]DUGRXVRFFXSDWLRQDO
GLVHDVHVVXFKDVFDUSDOWXQQHOV\QGURPHEDFNLQMXU\
KHDULQJORVVDQG/\PHGLVHDVH8QGHUVWDQGEHQHILWVRI
33(LQUHODWLRQWRWKHVHGLVHDVHV
3527(&7,1*<2856(/)$1'27+(56 3(5621$/3527(&7,9((48,30(1733(
6DIHW\KHOPHWVPXVWEHSURYLGHGWRDQGZRUQE\HYHU\RQH
RQWKHMRE
6DIHW\SDQWVRUFKDSVPXVWEHSURYLGHGWRDQGZRUQE\
ZRUNHUVXVLQJFKDLQVDZVHYHQLIWKHXVHLVRQO\RFFDVLRQDO
*ORYHVRUPLWWVPXVWEHSURYLGHGWRDQGZRUQE\ZRUNHUV
ZKRKDQGOHZLUHURSHDQGFKDLQVDZV
6DIHW\JRJJOHVVDIHW\JODVVHVRUDIDFHVFUHHQPXVWEH
SURYLGHGWRDQGZRUQE\ZRUNHUVZKHQWKHSRVVLELOLW\RI
H\HLQMXU\LVSUHVHQW
+HDULQJSURWHFWLRQPXVWEHSURYLGHGWRDQGXVHGE\
ZRUNHUVZKRDUHH[SRVHGWRH[FHVVLYHQRLVHHJFKDLQVDZ
RSHUDWRUVDQGVNLGGHURSHUDWRUV
26+$DSSURYHGILUVWDLGNLWVPXVWEHSURYLGHGWRHDFK
ZRUNFUHZDQGEHNHSWUHDGLO\DYDLODEOH
(TXLSPHQWRSHUDWRUVPXVWSURYLGHDQGZHDUZDWHUSURRI
KHDY\GXW\ORJJLQJVW\OHERRWV&KDLQVDZRSHUDWRUV
PXVWSURYLGHDQGZHDUZDWHUSURRIERRWVZLWKOXJRU
FDXONHGVROHVUHVLVWDQWWRFKDLQVDZSHQHWUDWLRQ
127( 26+$UHTXLUHVWKDWLWHPVRQHWKURXJKVL[EH
SURYLGHGDWQRFRVWWRWKHHPSOR\HH
$ERXW7KDW1HZ:RUNHU
:DV7KH:RUNHU
WROGWRGRWKHMRE"
VKRZQKRZWRGRWKHMRE"
REVHUYHGZKLOHGRLQJWKHZRUN"
FRUUHFWHGZKHQDFWLYLWLHVDUHGRQHXQVDIH"
FRPPHQGHGIRUGRLQJZHOO"
ZDUQHGRIGDQJHUV"
3URSHUMRELQVWUXFWLRQLVUHDODFFLGHQWSUHYHQWLRQ5HPHPEHU
WKDW\RXZHUHRQFHDJUHHQKRUQSDVVDORQJ\RXUH[SHULHQFH
3527(&7,1*<2856(/)$1'27+(56
3(5621$/3527(&7,9((48,30(17
5CHGV[*GCFYGCT
*GCTKPI2TQVGEVKQP
'[GCPF(CEG
2TQVGEVKQP
9GNN(KVVGF%NQVJKPI
$CNKUVKE0[NQP
%JCKP$TCMG
2TQVGEVKXG
(QQVYGCT
3527(&7,1*<2856(/)$1'27+(56
3527(&7,1*<2856(/)$1'27+(56
&255(&7/,)7,1*
/LIWLQJFDQKXUWLIGRQHLQFRUUHFWO\
3URWHFW\RXUEDFNE\XVLQJ\RXU
OHJV
7ROLIWVTXDWGRZQZLWKNQHHVEHQW
DQGEDFNVWUDLJKW+ROGWKHORDG
FORVHWR\RX
:KHQGRLQJKLJKOLIWVOLIWWRZDLVW
KHLJKWFKDQJHJULSEHQGNQHHV
WKHQSXVKXSZLWKOHJVWKLVDYRLGV
ERG\VWUDLQ
%HVXUH\RXFDQVHHZKHUH\RXDUH
JRLQJ*HWKHOSZLWKELJORDGV
:KHQWHDPOLIWLQJRQHPDQFDOOV
WKHVLJQDOVDQGHYHU\RQHZRUNV
WRJHWKHU
$/:$<6/,)7*5$'8$//<
:25.,1*,1$6$)((19,5210(17 :25.,1*,1$6$)((19,5210(17
N 5HFRJQL]HWKHFOLPDWLFH[WUHPHVRIZLQGKHDWFROGZHWRU
GU\HQYLURQPHQWVLQFOXGLQJWKHLUHIIHFWRQFXWWLQJDQG
VNLGGLQJRSHUDWLRQVWRHQVXUHSHUVRQDOVDIHW\DQGHIILFLHQW
KDUYHVWLQJ
N (VWDEOLVKLPPHGLDWHVLWHVDIHW\E\HOLPLQDWLQJSUREOHPWUHHV
VXFKDVZLGRZPDNHUVVQDJVVSHDUVKDQJXSVVSULQJ
SROHVDQGEORZGRZQV
N 5HFRJQL]HXQVWDEOHJURXQGFRQGLWLRQVWRPLQLPL]HWKHHIIHFW
RQFXWWLQJDQGVNLGGLQJRSHUDWLRQVDQGHQVXUHSHUVRQDO
VDIHW\DQGHIILFLHQWKDUYHVWLQJ
N ,GHQWLI\DQGDYRLGFRQWDFWZLWKSRZHUOLQHVDQGFDEOHVWR
HQVXUHVLWHVDIHW\
N ,GHQWLI\KDQGOHDQGVWRUHKD]DUGRXVPDWHULDOVVXFKDV
PRWRUIXHOOXEULFDQWVDQGFOHDQLQJVROYHQWHWFDFFRUGLQJ
WRWKHPDQXIDFWXUHU
VVSHFLILFDWLRQVDQG\RXUKD]DUGRXV
PDWHULDOVSODQ
N )ROORZILUHSURFHGXUHVDFFRUGLQJWRFRPSDQ\VWDWHDQG
IHGHUDOUHJXODWLRQV
N :RUNDVDWHDPPHPEHUWRHQVXUHDVDIHDQGHIILFLHQW
RSHUDWLRQ7HDPPHPEHUVPXVWXQGHUVWDQGDQGXVHDOO
FRPSDQ\RUDOZULWWHQDQGKDQGVLJQDOV
:25.,1*,1$6$)((19,5210(17
:$7&+)25+81*8375((6
'RQ
WZRUNQHDUKXQJXSWUHHV+DYH
WKHVHKD]DUGVSXVKHGRUSXOOHGGRZQE\DPDFKLQH
:25.,1*,1$6$)((19,5210(17
(19,5210(17$/&21',7,216
:HDWKHU&RQGLWLRQV
$OOZRUNVKDOOFHDVHDQGHPSOR\HHVVKDOOPRYHWRDVDIHSODFH
GXULQJHOHFWULFDOVWRUPVSHULRGVRIKLJKZLQGV03+IRU
FKDLQVDZZRUNRURWKHUZHDWKHUFRQGLWLRQVWKDWPD\EH
GDQJHURXVWRSHUVRQQHO
'DQJHU7UHHV
+D]DUGRXVGHDGEURNHQRUURWWLQJWUHHVVKDOOEHIHOOHG
UHPRYHGRUDYRLGHG1RZRUNZLOOEHGRQHLQWKHGDQJHUDUHD
XQWLODKD]DUGLVUHPRYHG6HWEDFNWUHHVRUKXQJXSWUHHVVKDOO
EHPDUNHGDQGUHPRYHGSURPSWO\
7UHHVVKDOOEHFKHFNHGIRUKD]DUGRXVVQRZRULFHDQG
SUHFDXWLRQVWDNHQ
:KHQKD]DUGVH[LVWDQGFDQQRWEHDYRLGHGQRZRUNVKDOOEH
GRQHLQWKHGDQJHUDUHDVXQWLOWKHKD]DUGVDUHHOLPLQDWHG
3/$11,1*25*$1,=,1*$1'35(3$5,1*7+(-2%6,7(
3/$11,1*25*$1,=,1*$1'
35(3$5,1*7+(-2%6,7(
N 3ODQVLWHOD\RXWE\ORFDWLQJFXWERXQGDULHVWHUUDLQDQG
KD]DUGVDQGGHWHUPLQHFXWPHWKRGVWRHVWDEOLVKWKH
ODQGLQJVVNLGWUDLOVDQGIHOOLQJSDWWHUQV
N ,GHQWLI\KD]DUGVLQFOXGLQJZLGRZPDNHUVVQDJVVSHDUV
KDQJXSVVSULQJSROHVDQGEORZGRZQV8VHFKDLQVDZVRU
VNLGGLQJHTXLSPHQWWRFOHDUWKHJURXQGRIXQGHUEUXVKDQG
REVWUXFWLRQVZKHUHQHFHVVDU\WRSURYLGHVDIHDFFHVVIRU
HIILFLHQWKDUYHVWLQJ
N 8VHSURSHUHTXLSPHQWWRSUHSDUHWKHODQGLQJDQGPDLQVNLG
WUDLOWRSURPRWHHIILFLHQWFXWWLQJVNLGGLQJDQGSLOLQJ
N 'HYHORSDIHOOLQJSDWWHUQWKDWSURYLGHVVDIHDFFHVVIRU
HIILFLHQWDQGSURGXFWLYHKDUYHVWLQJE\VWDUWLQJWKHKDUYHVWDW
DSRLQWGHWHUPLQHGE\GLUHFWLRQWRODQGLQJQDWXUDOOHDQ
WHUUDLQDQGSUHYDLOLQJZLQGGLUHFWLRQ
3/$11,1*25*$1,=,1*$1'35(3$5,1*7+(-2%6,7(
35(3$5,1*72)(//$75((
67$57,1*$675,3
3UHSDUHWRIHOODWUHHE\GHWHUPLQLQJKD]DUGVVXFKDVWKHOHDQ
DQGVRXQGQHVVRIWKHWUHHDQGWKHVSHHGDQGGLUHFWLRQRIWKH
ZLQG6XUYH\\RXUZRUNDUHDDQGLGHQWLI\\RXUHVFDSHURXWH
$OZD\VQRWFKWKHWUHHLQWKHGLUHFWLRQRIIDOODQGSURFHHGZLWK
WKHFRUUHFWFXWIRUWKHFLUFXPVWDQFHV
0$,17$,1,1*7+(&+$,16$:
0$,17$,1,1*7+(&+$,16$:
N &OHDQWKHFKDLQVDZXVLQJSURSHUWHFKQLTXHVWKDWHQVXUH
RSWLPXPSHUIRUPDQFHDQGVDIHUXQQLQJFRQGLWLRQDFFRUGLQJ
WRWKHPDQXIDFWXUHU
VVSHFLILFDWLRQV
N ,QVSHFWWKHFKDLQVDZIRUGDPDJHORRVHVFUHZVZRUQRU
GHIHFWLYHSDUWVDQGSURSHUVSDUNDUUHVWHU5HSDLURUUHSODFH
SDUWVDVQHFHVVDU\DFFRUGLQJWRWKHPDQXIDFWXUHU
V
VSHFLILFDWLRQV
N &KHFNJXDUGVDQGVDIHW\HTXLSPHQWWRHQVXUHWKDWWKH\DUH
LQSODFHDQGZRUNLQJ
N )XHODQGOXEULFDWHWKHFKDLQVDZDFFRUGLQJWRWKH
PDQXIDFWXUHU
VVSHFLILFDWLRQVIRUSHUVRQDOSURWHFWLRQWR
UHGXFHZHDUDQGWRHQVXUHRSWLPXPDQGHIILFLHQW
SHUIRUPDQFH%HVXUHWRXVHFRUUHFWJDVWRRLOUDWLR
N 6HWSURSHUFKDLQWHQVLRQE\DGMXVWLQJLWDFFRUGLQJWR
PDQXIDFWXUHU
VVSHFLILFDWLRQVWRSURWHFWWKHEDUDQGFKDLQ
IURPH[FHVVLYHZHDUDQGHQVXUHRSWLPXPFXWWLQJ
N &OHDQDQGFKHFNEDUUHJXODUO\IRUVWUDLJKWQHVVGHEXUUDQG
GUHVVUDLOVDQGOXEULFDWHDFFRUGLQJWRWKHPDQXIDFWXUHU
V
VSHFLILFDWLRQVIRURSWLPXPSHUIRUPDQFH
N 6KDUSHQWKHFKDLQDFFRUGLQJWRWKHPDQXIDFWXUHU
V
VSHFLILFDWLRQVZKLOHZHDULQJKDQGSURWHFWLRQDQGXVLQJ
SURSHUILOHVJDXJHVDQGJXLGHVWRHQVXUHRSWLPXPFXWWLQJ
DQGWRPLQLPL]HNLFNEDFNV
N 6HWWKHPRWRULGOHVSHHGWRHQVXUHWKDWWKHFKDLQLVVWDWLRQDU\
DQGWKHVDZFDQLGOH
0$,17$,1,1*7+(&+$,16$: N 6WDUWWKHFKDLQVDZZLWKWKHFKDLQEUDNHHQJDJHGXVLQJ
RQHRIWZRPHWKRGV+ROGWKHVDZILUPO\RQWKHJURXQG
ZLWKRQHKDQGRQWKHWRSKDQGOHEDUDQGRQHIRRWKROGLQJ
WKHEDFNKDQGOH7KHFURWFKFODPSWHFKQLTXHLVDOVR
DFFHSWDEOH6HFXUHWKHEDFNKDQGOHRIWKHVDZEHWZHHQ\RXU
OHJVZKLOHKROGLQJWKHWRSKDQGOHILUPO\
N 7HVWWKHFKDLQEUDNHWRHQVXUHWKDWWKHFKDLQZLOOVWRS
LPPHGLDWHO\LIQHFHVVDU\
N 2SHUDWHWKHFKDLQVDZE\NHHSLQJERWKKDQGVRQWKHVDZWR
HQVXUHVDIHRSHUDWLRQDQGHIILFLHQWFXWWLQJ.HHS\RXU
WKXPEVZUDSSHGDURXQGWKHKDQGOHEDU
N 7RSURYLGHRSWLPXPDQGVDIHIHOOLQJPDLQWDLQIHOOLQJDLGV
VXFKDVZHGJHVD[HVDQGIHOOLQJOHYHUVE\VKDUSHQLQJRU
UHSODFLQJWKHPZKHQGHIHFWLYH
0$,17$,1,1*7+(&+$,16$:
&+$,16$:0$,17(1$1&()256$)($1'
()),&,(1723(5$7,21
.HHS&KDLQV6KDUS
8VH&RUUHFW'HSWK*DXJHV
.HHS%DU*URRYHV&OHDQ$QG'UHVVHG
.HHS3URSHU&KDLQ7HQVLRQ
8VH3URSHU*DV$QG2LO0L[WXUH
8VH3URSHU&KDLQ2LO
8VH$SSURYHG6DIHW\*DV&DQV
'DLO\
&OHDQ6SURFNHW&RYHUV$QG%UDNH &OHDQ$LU)LOWHUV
&KHFN1XWV$QG%ROWV
&KHFN6SURFNHWV
:HHNO\
&OHDQ&\OLQGHU)LQV
)XHO)LOWHU
&KHFN6SDUN3OXJV
&+$,16$:6+$53(1,1*
&+$,16$:6+$53(1,1*
/RJJHUVDUHVWDUWLQJWRWDNHWKHLUVDZVVDZFKDLQDQGJXLGH
EDUVPRUHVHULRXVO\7KH\QRZUHDOL]HWKHLPSRUWDQFHRI
UHGXFLQJGRZQWLPHDQGLQFUHDVLQJSURGXFWLYLW\WKURXJKSURSHU
PDLQWHQDQFH
%\QRWSURSHUO\VKDUSHQLQJ\RXUFKDLQVDZ\RXZLOOUHGXFH
\RXUSURGXFWLYLW\DQGLQFUHDVH\RXUEDUDQGFKDLQZHDUDVZHOO
DVFDXVLQJ\RXUVHOIWRIDWLJXH
,QDGGLWLRQWRWKHH[WUHPHLPSRUWDQFHRIWKHKHDOWKDQGVDIHW\
IDFWRUVWKHUHDUHRWKHUFRQVLGHUDWLRQVWKDWDUHGHSHQGHQWXSRQ
JRRGVDZFKDLQVKDUSHQLQJ2QHFRVWRIRSHUDWLQJDQ\SLHFHRI
HTXLSPHQWLVPDLQWHQDQFH$OZD\VEHFRQFHUQHGZLWKWKHFRVW
RIUHSDLUVDQGUHSODFHPHQWVWKH\UHGXFH\RXUQHWSURILWZKLFK
FRQFHUQVHYHU\RQH3URSHUFKDLQVKDUSHQLQJZLOOLQFUHDVHWKH
OLIHRIWKHFKDLQEDUVSRZHUHTXLSPHQWHWF
7<3(62)&+$,16$1'7+(,586(6
&
KLSSHU0LFUR%LW2U5RXQG&KDLQ
N
8VH ZKDWHYHU QDPH \RX ZDQW EXW DOO DUH YHU\ VLPLODU LI QRW
LGHQWLFDO7KH\DUHXVHGPRVWO\LQWR3LWFK&KDLQV
IRU XVH ZLWK PHFKDQLFDO KDUYHVWHUV DQG DUH YHU\ SRSXODU IRU
FXWWLQJ KDUGZRRGV 7KHVH FKDLQV DUH LGHDO ZKHUH VHYHUH
FRQGLWLRQV VXFK DV GLUW DQG JULW H[LVW ,Q WKHVH FRQGLWLRQV
GXOOLQJ LV YHU\ UDSLG ZLWK RWKHU W\SHV RI FKDLQV 7KH\ DUH
XVXDOO\VKDUSHQHGZLWKDURXQGILOHRUJULQGHU
N6HPL&KLVHO2U0LFUR&KLVHO 7KLVFKDLQKDVDIODWWRSSODWHDQGIODWVLGHSODWHZLWKDGHILQLWH
URXQGHGFRUQHUDWWKHLQWHUVHFWLRQRIWKHVHVXUIDFHV7KLV
FKDLQW\SHLVXVHGPRUHLQJHQHUDODSSOLFDWLRQVZKHUHFXWWLQJ
&+$,16$:6+$53(1,1* FRQGLWLRQVDUHIDLUO\VHYHUHEXWQRWH[WUHPH6KDUSHQZLWK
DURXQGILOHRUJULQGHU
N &KLVHO7\SH&KDLQ 7KLVFKDLQKDVDIODWWRSSODWHDQGIODW
VLGHSODWHZLWKDVKDUSFRUQHUDWWKHLQWHUVHFWLRQRIWKHVH
WZRVXUIDFHV,WLVXVHGZKHUHSURGXFWLRQLVDSULPH
FRQVLGHUDWLRQ7KLVFKDLQLVDQH[FHOOHQWFXWWHUZKHQXVHG
LQPRUHLGHDOWUHHFRQGLWLRQVDQGLVDIDYRULWHRIPRUH
WLPEHUIHOOHUV%HVWUHVXOWVDUHSURGXFHGZKHQFXWWHUVDUH
VTXDUHJURXQGZLWKDVTXDUHILOHRUDQDSSURSULDWHJULQGHU
7KHSUHYLRXVO\PHQWLRQHGW\SHVRIFKDLQVFRPHZLWKFXWWHUV
VSDFHGDVIROORZV
67$1'$5'IXOOFRPSVHTXHQFHRQHWLHVWUDSLV
SRVLWLRQHGEHWZHHQHDFKFXWWHUDOWHUQDWLQJULJKWDQGOHIW
XVLQJWZRGULYHOLQNVIRUHDFKFXWWHU
6(0,6.,3VHTXHQFHFXWWHUVDOWHUQDWHO\KDYHRQHWLHVWUDS
EHWZHHQWKHULJKWDQGOHIWKDQGHGFXWWHUVWKHQWZRWLH
VWUDSVEHWZHHQWKHQH[WULJKWDQGOHIWFXWWHUVWKHQRQHWLH
VWUDSHWF
)8//6.,3VHTXHQFHSURYLGHVWZRWLHVWUDSVEHWZHHQHDFK
DOWHUQDWLQJULJKWDQGOHIWFXWWHUHDFKVXSSRUWHGE\WKUHH
GULYHOLQNV
&+$,16$:6+$53(1,1*
1RWDOOFKDLQW\SHVDUHDYDLODEOHLQWKHSUHYLRXVVHTXHQFHV
FKHFN\RXUGHDOHUIRUDYDLODELOLW\4XLWHRIWHQWKHUHZLOOEHDQWL
NLFNRUVDIHW\GHYLFHVLQVWDOOHGDKHDGRIWKHGHSWKJDXJH
LQFRUSRUDWHGZLWKWKHWLHVWUDS
7KHVHTXHQFHRIWKHFXWWHUSRVLWLRQLVPRVWO\DSHUVRQDO
SUHIHUHQFHRIWKHVDZRSHUDWRU7KHVWDQGDUGW\SHSURYLGHVD
VPRRWKHUFXWZLWKOHVVFKDQFHRIYLEUDWLRQDQGNLFNEDFNDQGD
JRRGDOODURXQGIHOOLQJOLPELQJDQGEXFNLQJFKDLQ
0RVWFKDLQVDUHDYDLODEOHLQGLIIHUHQWGULYHUJDXJHV6WDQGDUG
FKDLQVPRVWFRPPRQO\XVHGDUHSURYLGHGLQDQG
WKLFNQHVVHV6RPHJDXJHKDUYHVWHUFKDLQVDUH
DYDLODEOHLQJDXJHVZKLOHWKHSLWFKFKDLQLVVWDQGDUG
DWWKLFNRQWKHGULYHUVIRUREYLRXVUHDVRQV
'HSWKJDXJHVHWWLQJVDUHXVXDOO\VSHFLILHGE\WKHFKDLQ
PDQXIDFWXUHUDQGVRPHWLPHVDUHVWDPSHGRQWKHGHSWKJDXJH
7KHLUUHFRPPHQGDWLRQVDUHJHQHUDOO\DFFHSWHGE\WKHRSHUDWRU
6$:&+$,16+$53(1,1*$1*/(6
6KDUSHQLQJWKHVDZFKDLQFXWWHUVQRWRQO\UHTXLUHVVKDUSHGJHV
WKHDQJOHVDWZKLFKWKHWKUHHVXUIDFHVDUHJURXQGRUILOHGLV
DOVRRIWKHXWPRVWLPSRUWDQFH7KHVXUIDFHVDUHJHQHUDOO\
UHIHUUHGWRDV
&+$,16$:
$OOGHJUHHVUHIHUUHGWRDUHJLYHQIURPHLWKHUWKHEDVHRIWKH
FKDLQRUIURPWKHVLGHRIWKHFKDLQ7KHVORSHRIWKHVLGHRUWRS
RIWKHFXWWHULVQRWDUHIHUHQFHSRLQWDVWKHVHVXUIDFHVDUH
DQJXODULQWKHPVHOYHV
7KHUHDUHWZRPHWKRGVRIVKDUSHQLQJFKDLQV7KHPRVW
FRPPRQPHWKRGRIVKDUSHQLQJLVZLWKDKDQGKHOGURXQGILOH
7KLVVW\OHLQPRVWFDVHVZLOOKDYHDYDLODEOHILOHKROGHUVDQG
RWKHUWRROVWKDWFDQKHOSVWDELOL]HDQGSURYLGHEHWWHUDFFXUDF\
DQGXQLIRUPLW\WRWKHVKDUSHQLQJRSHUDWLRQ7KHRWKHUPHWKRG
RIVKDUSHQLQJLVE\XVLQJDJULQGHUHTXLSSHGZLWKDURWDWLQJ
VWRQHSXOOHGGRZQLQWRWKHFXWWHU
VFXWWLQJHGJHZKLOHWKHFXWWHU
LVVHFXUHGLQDYLVHOLNHUDLOWRKROGWKHFXWWHULQWKHSURSHU
JULQGLQJSRVLWLRQ7KLVW\SHRIJULQGHULVPRUHH[SHQVLYH
/RJJHUVVKRXOGIROORZWKHFKDLQPDQXIDFWXUHU
VUHFRPPHQGHG
DQJOHVSHFLILFDWLRQVZKHWKHUXVLQJWKHURXQGILOHPHWKRGRUD
PHFKDQLFDOJULQGHU&KHFNIRUWKHODWHVWLQIRUPDWLRQEHFDXVH
DQJXODUVSHFLILFDWLRQVKDYHLQVRPHFDVHVFKDQJHGUDGLFDOO\LQ
UHFHQW\HDUV7KHVHFKDQJHVKDYHEHHQGHYHORSHGLQWKH
ILHOGDQGDVDUHVXOWWKHFKDLQSHUIRUPDQFHLVPXFKEHWWHU
&+,6(/%,7&+$,1648$5(),/,1*
7KLVVDZFKDLQLVQRWIRUHYHU\RQH$FKLVHOELWVDZFKDLQLVD
SURIHVVLRQDOO\FODVVHGVDZFKDLQ%HIRUHXVLQJDQ\SURIHVVLRQDO
FODVVRIVDZFKDLQWKHRSHUDWRU0867EHLQVWUXFWHGLQDGYDQFHG
FXWWLQJDQGPDLQWHQDQFHSURFHGXUHV7KHUHDFWLYHIRUFHV
SURGXFHGPD\EHKLJKHUWKDQORZNLFNVDZFKDLQV
&+$,16$:6+$53(1,1*
7KHUHGXFHGUHVLVWDQFHFXWWLQJDELOLW\RIFKLVHOELWFKDLQVVKRZV
QRWLFHDEO\LQFUHDVHGFXWWLQJVSHHGDQGVPRRWKQHVVLQPRVW
ZRRGW\SHV0DQ\ORJJHUVDUHJHWWLQJH[FHOOHQWUHVXOWVZLWK
FKLVHOELWFKDLQVHYHQLQGLUW\ZRRG7KH\DUHUHGXFLQJ
VKDUSHQLQJIUHTXHQF\FRPSDUHGWRWKDWQHHGHGRQURXQGJURXQG
FKLVHOFKDLQV8VHUVDUHUHGXFLQJWKHWRSSODWHDQJOHWRGHFUHDVH
WKHWRRWK
VVLGHPRYHPHQW7KHDQJOHLURQHIIHFWRIWKHFKDQQHO
FXWWRWKHSRLQWRQFKLVHOELWFKDLQVRIIHUVWKHSRLQWPRUH
VXSSRUWIURPWKHXQGHUVLGH7KLVHIIHFWGHFUHDVHVWKHSRVVLELOLW\
RIWKHSRLQWGHIRUPLQJGXULQJDEUDVLYHFRQGLWLRQV
7KHURXQGWRRWKVDZFKDLQKDVPDQ\YDULDEOHV7KHILOHVL]H
DQGORFDWLRQWKHSRVVLELOLW\RIKRRNLQJWKHWRRWKDQGWKH
LPSRUWDQFHRIWKHWRSDQJOHV:LWKFKLVHOELWILOLQJWKHDQJOHV
DUHVLPSOLILHGDQGWKHILOHVL]HLVWKHVDPHRQDOOWRRWKVL]HV
&+$,16$:6$)(7<
&+$,16$:6$)(7<
6$)(7<'(9,&(6
$OOFKDLQVDZVVKRXOGKDYHWKHIROORZLQJPHFKDQLFDOVDIHW\
IHDWXUHV
D &KDLQEUDNHV
E 9LEUDWLRQGDPSHQHGKDQGOHV\VWHP
F 7KURWWOHLQWHUORFNWRSUHYHQWDFFLGHQWDOHQJLQH
DFFHOHUDWLRQ
G &KDLQFDWFKHUQHDUFOXWFKKRXVLQJDQGWKURWWOH
KDQGJXDUG
H 6DIHW\IHDWXUHVVKDOOQRWEHDOWHUHGUHQGHUHG
LQRSHUDEOHRUUHPRYHG
$FFHVVRU\VDIHW\HTXLSPHQWIRUFKDLQVDZRSHUDWRUV
D $SSURYHGVDIHW\IXHOFDQ
E $SSURSULDWHWRROVWRPDLQWDLQWKHFKDLQDQGSRZHUKHDG
F 7ZRSODVWLFZRRGRUDOXPLQXPDOOR\ZHGJHVDQG
IHOOLQJEDU
G $QD[HZLWKDEODGHJXDUG
H 3HUVRQDOILUVWDLGNLW
0LVFHOODQHRXVHTXLSPHQWIRUHIILFLHQWXVHRISRZHUVDZV
D )XQQHOIRUIXHODQGRLO
E ([WUDILOHVDQGJDXJHVIRUVKDUSHQLQJWKHFKDLQ
F 6SDUHVDZSDUWVWRPLQLPL]HGRZQWLPH
6SDUHFKDLQDQGVSURFNHW
([WUDJXLGHEDUQXWV
([WUDVSDUNSOXJ
([WUDDLUILOWHU
([WUDVWDUWHUURSHDQGVSULQJ
([WUDFKDLQFDWFKHUVSDUHEDUDQGEDUWLS
([WUDVDZZUHQFK
G )LUHH[WLQJXLVKHU
&+$,16$:6$)(7<
23(5$7,1*352&('85(6
&KDLQVDZVDUHLQYROYHGLQPRUHWKDQSHUFHQWRIDOO
ZRRGVDFFLGHQWVDQGVKRXOGEHKDQGOHGZLWKFDXWLRQ
+DUGKDWVH\HDQGHDUSURWHFWLRQDSSURSULDWHIRRWZHDUDQG
VDIHW\SDQWVRUFKDSVVKDOOEHZRUQE\VDZRSHUDWRUV6HH
SDJHVL[IRUDFRPSOHWHOLVW
$OZD\VVWDUWWKHVDZRQIODWOHYHOJURXQGRUE\XVLQJWKH
FURWFKFODPSPHWKRGQHYHUGURSVWDUWRUXVH\RXUNQHH
:KHQFDUU\LQJWKHVDZDQ\GLVWDQFHFDUU\LWE\WKHIURQW
KDQGOHZLWKWKHPRWRUVWRSSHGDQGWKHEDUWRWKHUHDUVRLW
FDQEHWKURZQFOHDULQFDVHRIDVWXPEOHRUIDOO
$GMXVWWKHLGOLQJVFUHZVRWKHFKDLQVWRSVDQGWKHVDZLGOHV
IRUVHYHUDOPLQXWHV)ROORZWKHPDQXIDFWXUHU
V
VSHFLILFDWLRQVIRUDGMXVWPHQWV
/HWWKHPRWRUFRROEHIRUHUHIXHOLQJ5HIXHODPLQLPXPRI
IHHWIURPDIODPHVRXUFH
:LSHJDVROLQHVSLOOVRIIWKHPRWRU
.HHSDILUVWDLGNLWDQGILUHH[WLQJXLVKHUKDQG\
.HHS\RXUWKXPEVIXOO\HQFLUFOHGEXWQRWWLJKWDURXQGWKH
KDQGOHEDUVQRWUHVWLQJRQWRSRIWKHKDQGOHEDUV
+ROGWKHVDZZLWK\RXUZULVWVDVVWUDLJKWDVSRVVLEOHDQG
NHHSWKHEDUDQGFKDLQRQDSODQHWKDWLVQRWLQOLQHZLWK
\RXUERG\
6WDJJHU\RXUIHHWLQDZD\WKDWSURYLGHVIRUJRRGEDODQFHLQ
FDVHRIDNLFNEDFN$OZD\VNHHS\RXUNQHHVEHQWDQG\RXU
EDFNVWUDLJKW
&+$,16$:6$)(7<
67$57,1*<2856$:
1HYHU6WDUW$6DZ2Q<RXU.QHH2U%\'URS6WDUWLQJ
$OZD\V6WDUW<RXU6DZ
2Q6PRRWK/HYHO*URXQG
2U%\8VLQJ7KH&URWFK
&ODPS0HWKRG
&+$,16$:6$)(7<
&+$,16$:.,&.%$&.
0RVWFKDLQVDZLQMXULHVDUHFDXVHGE\NLFNEDFN.LFNEDFN
RFFXUVZKHQWKHNLFNEDFNFRUQHURIWKHEDUVWULNHVDQREMHFW7R
SUHYHQWNLFNEDFNPDNHFHUWDLQWKHWLSRIWKHEDULVFOHDUIRUDOO
QRUPDOFXWV0DNHERUHFXWVXVLQJWKHDWWDFNFRUQHURIWKHEDU
6WDUWWKHFXWZLWKWKHORZHUTXDGUDQWRIWKHEDUXQWLOWKHZRRGLV
RQERWKVLGHVRIWKHWLS7KHQVWUDLJKWHQLWRXWDQGFRPSOHWHWKH
ERUHFXW7DNHDYHU\ILUPJULSRQWKHVDZXVLQJH[WUHPH
FDXWLRQWRFRXQWHUDFWDQ\NLFNEDFNUHDFWLRQ
&+$,16$:6$)(7<
)285&$86(62).,&.%$&.
6JGMKEMDCEMEQTPGTQHVJGDCT
JKVUCPQDUVTWEVKQP
6JGEWVVKPIVGGVJQPVJG
EJCKP
6JGEJCKPRKNGUWRCV
VJGRQKPVQHEQPVCEV
&TKXGHQTEGMKEMUVJGDCT
ECTT[KPIVJGEJCKP
WRYCTFKPCFKTGEVKQP
QRRQUKVGVQVJCVKP
YJKEJVJGEJCKPKUDGKPI
&+$,16$:6$)(7<
&+$,16$:$&&,'(176
$YHUDJH%RG\&RQWDFWZLWK0RYLQJ&KDLQ
+LWWLQJ3RLQWV$YHUDJH
7RRGTDQF[
.GHVJCPF
CPFCTO
4KIJV
JCPF
CPFCTO
.GHVMPGG
CPFVJKIJ
4KIJVMPGG
#PFVJKIJ
.GHVHQQV
CPFNGI
4KIJVHQQV
CPFNGI
4KIJV .GHV
&+$,16$:6$)(7<
.((36$:3523(5/<$'-867('
1HYHUFDUU\DVDZ
ZLWKDUXQQLQJ
FKDLQVKXWLW
RIIRUHQJDJHWKH
FKDLQEUDNHZKHQ
FDUU\LQJIRU
GLVWDQFHVJUHDWHU
WKDQIHHWRUIRU
OHVVHUGLVWDQFHV
ZKHQWKHWHUUDLQ
DQGRWKHUSK\VLFDO
IDFWRUVPDNHWKH
FDUU\LQJRID
UXQQLQJVDZ
KD]DUGRXV
$OZD\VNHHS
\RXUILQJHUV
EDFNRQWKH
KDQGOHQRWRQ
WKHWULJJHU
2WKHUZLVHLI\RX
IDOO\RXPD\
DXWRPDWLFDOO\
JUDEWKHWULJJHU
FDXVLQJDVHULRXV
RUIDWDOLQMXU\
6(7&+$,1%5$.(
7$.(<285),1*(562))7+(6$:75,**(5
:+(1029,1*)52075((7275((
)(//,1*75((6
)(//,1*75((6
'HWHUPLQHDQGGHYHORSDVDIHDQGHIILFLHQWIHOOLQJSDWWHUQIURP
YLVXDOREVHUYDWLRQ7DNHLQWRDFFRXQWVXFKIDFWRUVDVODQGLQJ
DUHDZLQGGLUHFWLRQQDWXUDOOHDQRIWUHHVDQGWHUUDLQ
3ULRUWRIHOOLQJWUHHVLGHQWLI\DQGHOLPLQDWHKD]DUGVLQWKHIHOOLQJ
DUHDVXFKDVZLGRZPDNHUVVQDJVVSHDUVKDQJXSVVSULQJ
SROHVEORZGRZQVDQGXQVWDEOHJURXQG7KLVVDIHW\FKHFNZLOO
RSWLPL]HVDIHW\DQGSURGXFWLRQ
2EVHUYHIHOOLQJGDQJHU]RQHVE\NHHSLQJDVDIHGLVWDQFHWZR
WUHHOHQJWKVRUPRUHLIQHFHVVDU\EHWZHHQ\RXUVHOIRWKHUVDQG
HTXLSPHQW
3UHSDUHWKHIHOOLQJDUHDE\FOHDULQJGHEULVDQGREVWDFOHVIURP
WKHEDVHRIWKHWUHHHVWDEOLVKLQJDQHVFDSHURXWHDQG
HOLPLQDWLQJSRWHQWLDOKD]DUGV
&XWDQRWFKXVLQJWKHRSHQIDFHRUXQGHUFXWPHWKRGDV
GHVFULEHGLQWKH26+$/2**,1*6WDQGDUGFIU
JLLLPDNLQJWKHVHOHFWLRQEDVHGRQWUHHVSHFLHVVL]H
OHDQORFDWLRQDQGVDIHW\'HYHORSDIHOOLQJSDWWHUQWRIDFLOLWDWH
VDIHHIILFLHQWSURGXFWLRQ
$IWHUJLYLQJDZDUQLQJXQGHUVWRRGE\DOOSHUVRQQHOPDNHWKH
DSSURSULDWHEDFNFXW7KHEDFNFXWRQDQRSHQIDFHQRWFK
VKRXOGEHDWWKH6$0(OHYHODVWKHQRWFK(VWDEOLVKWKHSURSHU
KLQJHZRRGOHQJWKDSSUR[LPDWHO\RIGLDPHWHUEUHDVW
KHLJKW'%+ZLGWKDSSUR[LPDWHO\'%+VRWKDW
GLUHFWLRQRIIDOOLVFRQWUROOHGDQGDQ\SRWHQWLDOEXWWNLFNEDFNLV
PLQLPL]HG
5HWUHDWIURPDIDOOLQJWUHHE\XVLQJDQHVWDEOLVKHGHVFDSHURXWH
GHJUHHVWRWKHUHDURIWKHLQWHQGHGGLUHFWLRQRIIDOOZKLOH
NHHSLQJWKHWUHHLQYLHZ(VWDEOLVK6DIHVLGHDQG+D]DUGVLGH
VRWKDW\RXSXW\RXUVHOIRQWKHVDIHVLGHGXULQJIHOOLQJSKDVHRI
EDFNFXWHVFDSHWRVDIHVLGH
)(//,1*75((6
3523(57,0%(5)(//,1*352&('85(6
&XWGRZQDOOGHDGVQDJVRUVWXEVILUVW
$OZD\VORRNDWWKHWRSRIWKHWUHHIRUZLGRZPDNHUV
ORGJHGWUHHVZLUHVDQGRWKHUKD]DUGV3ODQWKHGLUHFWLRQ
IRUWKHIDOORIWKHWUHH&OHDUDQDUHDDURXQGWKHWUHHEHIRUH
VWDUWLQJWRFXW
3UHSDUHDOLQHRIUHWUHDWGDZD\IURPWKHOLQHRIIDOO%H
VXUH\RXDUHQRWKHPPHGLQZLWKXQGHUEUXVKRU
REVWUXFWLRQV
%HIRUHVWDUWLQJWRFXWPDNHVXUHQRRQHLVFORVHUWKDQWZR
WUHHOHQJWKVDZD\IURPIHOOLQJRSHUDWLRQV
0DNHDQRWFKRQDOOWUHHVQRPDWWHUKRZVPDOOWKHGLDPHWHU
*LYHDWLPHO\ZDUQLQJ\HOOXQGHUVWRRGE\DOOHPSOR\HHV
MXVWEHIRUHWKHEDFNRUILQDOFXWLVVWDUWHG
1HYHUFXWDVWDQGLQJWUHHFRPSOHWHO\WKURXJK/HDYH
VXIILFLHQWZRRGEHWZHHQWKHQRWFKDQGWKHEDFNFXWIRUWKH
WUHHWRKLQJHRQRWKHUZLVH\RXPD\ORVHFRQWURORIWKHWUHH
DQGLWFRXOGNLFNEDFN
1HYHUOHDYHDORGJHGRUKXQJWUHHDOZD\VSXVKRUSXOOLW
GRZQZLWKWKHDLGRIDVNLGGHUHWF,ILWKDVWREHOHIW
XQDWWHQGHGIRUDQ\OHQJWKRIWLPHSURSHUO\PDUNLWWR
LQGLFDWHDGDQJHUDUHD
1HYHUFXWRQGD\VRIKLJKZLQGYHORFLW\
1HYHUFOLPERUFXWVHFWLRQVRXWRIORGJHGWUHHV
1HYHUOHDYHDORGJHGWUHHDVDQ\YLEUDWLRQIURPPDFKLQHU\
RUDVXGGHQZLQGFRXOGEULQJLWGRZQRQDFUHZPHPEHURU
DQXQVXVSHFWLQJSHUVRQ
)HOOZLWKWKHOHDQRIWKHWUHHZKHQHYHUSRVVLEOHDQGLQWR
FOHDUDUHDV
5HWUHDWIURPDIDOOLQJWUHHDWDGDQJOHDZD\IURPWKH
GLUHFWLRQRIIDOODQGDWOHDVWIHHWIURPWKHWUHH,I
SRVVLEOHVWDQGEHKLQGDQRWKHUWUHHDWWKHHQGRI\RXUUHWUHDW
SDWK
)(//,1*75((6
3523(5)(//,1*,03529(648$/,7<48$17,7<
$1'6$)(7<%<5('8&,1*
'7KHQXPEHURIWUHHVIDOOLQJLQWKHZURQJGLUHFWLRQ
'3XOOHGILEHUVDQGVLGHVFDUV
''DPDJHWRWKHEXWWORJ
'7KHDPRXQWRIWLPHVSHQWPRYLQJZRRGWRWKHODQGLQJ
'7LPHVSHQWSXVKLQJDQGSXOOLQJWUHHVGRZQ
'7LPHORVWZKHQDFKDLQVDZLVSLQFKHG
',QMXULHVIURPSXVKLQJDQGFXWWLQJDWWKHVDPHWLPH
'7KHSRVVLELOLW\RIDWUHHVSOLWWLQJLQDEDUEHUFKDLU
'7KHQXPEHURIWUHHEXWWVNLFNLQJEDFNRIIWKHVWXPS
'7KHSRVVLELOLW\RIWUHHVEHLQJFXWDOPRVWFRPSOHWHO\RIIDQG
QRWIDOOLQJ
)(//,1*75((6
(6&$3(5287(
7KHHVFDSHURXWHVKDOOEHDWDGDQJOHDZD\IURPWKHIDOOLQJ
WUHHWRDGLVWDQFHRIDWOHDVWIHHWDZD\IURPWKHWUHH
3523(5127&+(6
)(//,1*75((6
3523(5',0(16,2162)127&+(6
7KHGHSWKRIWKHQRWFKVKRXOGEHRIWKHWUHHGLDPHWHU7KH
IDFHRSHQLQJRIDQRWFK$VKRXOGEHHTXDOWRWKHGHSWK%
$ZLGHRSHQIDFHQRWFKLVVDIHVWDQGUHTXLUHVDQRSHQLQJRIG
RUPRUHWRSUHYHQWSUHPDWXUHFORVLQJRIWKHQRWFK
7+5((7<3,&$/,03523(5127&+(6
,PSURSHUQRWFKHV
3RUWLRQ RI QRWFK WKDW PXVW EH UHPRYHG WR FRUUHFW WKH
LPSURSHUFXW
)(//,1*75((6
3523(5%$&.&877,1*
23(1)$&(127&+G25025(
%RUHFXWWRHVWDEOLVKDKLQJHDQGFXWWRZDUGWKHEDFNRIWKHWUHH
6WRSWKHFXWOHDYLQJHQRXJKKROGLQJZRRGRQWKHEDFNVLGHRI
WKHWUHH7KHQUHOHDVHWKHWUHHIURPWKHEDFNVLGHZLWKDFXW
EHORZWKHERUHFXW
+LQJHRUKROGLQJZRRGRIVXIILFLHQWOHQJWKDQGZLGWKLVUHTXLUHG
WRFRQWUROWKHWUHHZKHQIDOOLQJ7KHERUHEDFNFXWPXVWEH
PDGHDWWKHVDPHOHYHODVWKHQRWFKWRLQFUHDVHKLQJHVWUHQJWK
7KLVWHFKQLTXHLVFRQVLGHUHGWKHVDIHVWPHWKRGWRIHOOWUHHV
5(68/762),03523(5%$&.&877,1*
%DFNFXWWRRGHHSLQDGHTXDWHKLQJH
7KHKLQJHZLOOEUHDNDOPRVW
LPPHGLDWHO\UHVXOWLQJLQ
LQDFFXUDWHIHOOLQJDQGGDPDJHWR
WKHEDURUVDZ
)(//,1*75((6
%DFNFXWWRRKLJKDERYHWKHQRWFK
7KLVKLJKO\LQFUHDVHVWKHFKDQFHWKH
KLQJHZLOOEUHDNDOORZLQJORVVRI
FRQWURORIWKHIHOOLQJRIWKHWUHH,W
DOVRSURGXFHVDORZTXDOLW\EXWW
%DFNFXWEHORZWKHQRWFK
7KHVDPHSUREOHPVH[LVWZLWKWKLV
WHFKQLTXHDVZLWKFXWWLQJDERYHWKHQRWFK
%\SDVVLQJWKHFXWWLQJRIWKHQRWFKZLOO
UHGXFHKLQJHZRRGVWUHQJWKDQGZLOODOORZ
WKHWUHHWRIUHHIDOOZLWKRXWFRQWURO
6ORSLQJEDFNFXW
7KLVFXWOHVVHQVWKHFKDQFHRIPHHWLQJ
WKHQRWFKRUOHDYHVDQLQDFFXUDWHKLQJH
SURGXFLQJORZTXDOLW\EXWW
$QJOHEDFNFXWZLWKLQDGHTXDWHQRWFK
:LWKQRQRWFKGLUHFWLRQDOIHOOLQJLVJUHDWO\
UHGXFHG7KLVFXWSURGXFHVORVVRIIHOOLQJ
FRQWUROORZTXDOLW\EXWWDQGJUHDWO\
LQFUHDVHVWKHFKDQFHRIEDUEHUFKDLULQJ
)(//,1*75((6
)(//,1*352%/(075((6
6RPHWUHHVSUHVHQWVSHFLDOSUREOHPVLQIHOOLQJ
7UHHVWKDWVLGHVFDUHDVLO\VXFKDVDVK
/DUJHUWUHHVOLJKWOHDQHUVRUKHDY\WRSV
+HDY\OHDQHUV
)HOOLQJWUHHVDJDLQVWWKHQDWXUDOOHDQ
127( 6HYHUDORIWKHIROORZLQJWHFKQLTXHVPD\RUPD\
QRWUHTXLUHVKDOORZVLGHFXWWLQJDWWKHFRUQHUVRIWKH
QRWFKZKHQFXWWLQJJUDGHORJV6LGHFXWWLQJLVXVHG
RQOHDQHUVWRVWRSEDUEHUFKDLULQJDQGLVRIWHQXVHG
RQVWUDLJKWJUDLQHGWUHHVVXFKDVRDNDQGDVK6LGH
FXWWLQJRIORJWLPEHULVDPXVW7KLVSURFHGXUHZLOO
KHOSUHGXFHVLGHVFDUULQJDQGILEHUSXOORIWKHEXWW
ORJKRZHYHULWDOVRZLOOUHGXFHWKHVWUHQJWKRIWKH
KROGLQJZRRGRUKLQJH
ALL OF THESE TECHNIQUES
REQUIRE
ADVANCED ABILITIES
)(//,1*75((6
75((67+$76,'(6&$5($6,/<
7RSUHYHQWVLGHVFDUULQJLQVWDQGDUGIHOOLQJWKHVLGHVRIWKH
KLQJHEHWZHHQWKHQRWFKDQGWKHEDFNFXWDUHVDZQEHIRUH
PDNLQJWKHEDFNFXW
$VWKHWUHHIDOOVWKHVWURQJHUPRUHIOH[LEOHILEHUVGRQRWEUHDN
ZKHQWKHQRWFKFORVHV
,QVWHDGRIEUHDNLQJZLWKWKHKLQJHVWULSVDORQJWKHVLGHRIWKH
WUHHULSRIIWKHEXWWORJUHVXOWLQJLQVLGHVFDUV
127&+,1*
)(//,1*75((6
0HWKRG7R8VH:KHQ7KH7UHH'LDPHWHU,V*UHDWHU7KDQ7KH/HQJWK
2I7KH&KDLQ6DZ%DU%XW1RW0RUH7KDQ7ZLFH7KH/HQJWK2I7KH
%DU
%25,1*7(&+1,48(
7KHQRWFKLVPDGHLQWKHQRUPDOPDQQHUDQGWKHERULQJFXWLV
EHJXQXVLQJWKHORZHUTXDGUDQWRIWKHEDUWLSVWDUWLQJRQ
WKHVLGHZLWKWKHOHDQRIWKHWUHH
2QFHWKHZRRGLVRQERWKVLGHVRIWKHEDUWLSWKHVDZLV
VWUDLJKWHQHGDQGWKHERUHLVFRPSOHWHGMXVWEH\RQGWKH
KDOIZD\SRLQWRIWKHWUHH
VGLDPHWHU7KLVDFWLRQZLOODOORZ
DQRYHUODSZKHQWKHERUHFXWLVFRPSOHWHGIURPWKHRSSRVLWH
VLGHRIWKHWUHH
,IWKHWUHHKDVDKHDY\IRUZDUGOHDQERUHLQIURPERWKVLGHV
WRHVWDEOLVKWKHKLQJH7KHQFXWWRWKHEDFNOHDYLQJVXSSRUW
ZRRG3XOOWKHVDZRXWWKHQUHOHDVHWKHWUHHIURPWKH
EDFNVLGH
127( ,IERULQJLVGRQHLQFRUUHFWO\WKHUHLVDQLQFUHDVHG
FKDQFHRINLFNEDFNXVHH[WUHPHFDXWLRQ
&$87,21
:KHQXVLQJWKLVWHFKQLTXHWKHVDZQHHGVWREHUXQQLQJDWPD[LPXP
530
VDQGWKHFKDLQQHHGVWREHSURSHUO\VKDUSHQHG3URIHVVLRQDO
WUDLQLQJLVDGYLVHGVRWKDWWKLVWHFKQLTXHFDQEHSURSHUO\XWLOL]HG
)(//,1*75((6
0HWKRG7R8VH:KHQ7KH7UHH'LDPHWHU,V*UHDWHU7KDQ7ZR7LPHV
7KH&KDLQ6DZ%DU/HQJWK
%25,1*7(&+1,48(
7KHQRWFKLVPDGHLQWKHQRUPDOPDQQHU$ERUHFXWLV
PDGHLQWKHFHQWHURIWKHQRWFKXVLQJWKHORZHUTXDGUDQW
RIWKHEDUWLS
&XWRXWDVPXFKZRRGDVQHHGHGVRWKHEDUZLOOUHDFKIURP
ERWKVLGHV5HPRYHWKHVDZ
6WDUWDERUHFXWDWWKHQRUPDOOHYHOIRUDEDFNFXWDJDLQXVLQJ
WKHORZHUTXDGUDQWRIWKHEDU
%RUHVWUDLJKWLQOHDYLQJHQRXJKKLQJHZRRGIRUWKHVL]HRI
WKHWUHH:DONWKHVDZDURXQGFXWWLQJDSSUR[LPDWHO\KDOI
WKHWUHH5HSHDWWKHSURFHGXUHRQWKHRSSRVLWHVLGHOHDYLQJ
VXIILFLHQWKROGLQJZRRGLQEDFN
8VHDUHOHDVHFXWIURPWKHEDFNVLGH
&$87,21
7KLVLVDYHU\SURIHVVLRQDOW\SHRIIHOOLQJ$ODUJHGLDPHWHUWUHHPD\EH
OHIWVWDQGLQJXQWLODFXWWHUFDQXVHDODUJHUVDZZLWKDORQJHUEDU$JDLQ
SURIHVVLRQDOWUDLQLQJLVUHFRPPHQGHGIRUWKLVWHFKQLTXH
)(//,1*75((6
+($9</($1(56
%25,1*7(&+1,48(6
&$87,21
7KLVLVDYHU\SURIHVVLRQDOW\SHRIIHOOLQJ,I\RXDUHQRW
FRPIRUWDEOHFXWWLQJWKHVHWUHHV'21
7'2,7
%HJLQE\PDNLQJDQRSHQIDFHQRWFKGRUPRUHKLQJH
OHQJWKVKRXOGEH'%+RUORQJHULIQHFHVVDU\)RU
H[DPSOHD'%+WUHHVKRXOGKDYHDKLQJHOHQJWKRIDW
OHDVW
$WWKHVDPHSODQHDVWKHQRWFKERUHRXWWKHWUHHIURPWKH
KLQJHZRRGEDFNZKLOHOHDYLQJVXIILFLHQWKROGLQJZRRGDW
WKHEDFNRIWKHWUHH$OZD\VVWDUWERULQJZLWKWKHORZHUSDUW
RIWKHEDUWLS7KLVLVFRQVLGHUHGWKHVDIHVWIHOOLQJWHFKQLTXH
7KHVDPHERULQJSURFHGXUHLVWKHQSHUIRUPHGRQWKHRWKHU
VLGHRIWKHWUHHHQVXULQJWKDWWKHWZRERULQJFXWVPHHW2PLW
WKLVVWHSLIWKHWUHHLVVPDOOHQRXJKIRUWKHVDZEDUWRUHDFK
WKURXJKWKHWUHHLQRQHFXW
$ILQDOKRUL]RQWDOEDFNFXWLVPDGHEHORZWKHERULQJFXW
7KHKROGLQJZRRGDWWKHEDFNVHYHUVDQGWKHWUHHIDOOV
JXLGHGE\WKHKLQJH$OZD\VVWDUWERULQJZLWKWKHORZHUSDUW
RIWKHEDUWLS
)(//,1*75((6
)(//,1*$*$,1677+(1$785$//($1
$ODUJHWUHHPD\EHIHOOHGDJDLQVWLWVQDWXUDOOHDQE\XVLQJWKH
ERULQJWHFKQLTXH8VHWKHRSHQIDFHQRWFKDQGERUHFXWWKHWUHH
WRHVWDEOLVKWKHKLQJH'2127&872877+(%$&.
$OORZHQRXJKEDFNZRRGWRNHHSWKHWUHHVHFXUH5HPRYHWKH
VDZIURPWKHERUHFXWDQGLQVHUWZHGJHVWLJKWO\LQWRLW5HOHDVH
WKHWUHHIURPWKHEDFN&RPSOHWHWKHWHFKQLTXHE\ZHGJLQJWKH
WUHHRYHU7KLVWHFKQLTXHLVIRUH[SHULHQFHGFXWWHUVRQO\
)HOOLQJDJDLQVWWKHQDWXUDOOHDQPD\EHQHFHVVDU\WR
N $YRLGIDOOLQJLQWRRWKHUWUHHV
N 3ODFHWKHWUHHLQWKHGHVLUHGGLUHFWLRQ
N 3UHYHQWDKDQJXS
N $YRLGEUHDNDJH
N $YRLGGLVWXUELQJWKHIHOOLQJSDWWHUQ
N $YRLGIDOOLQJRQIHQFHVDFURVVSURSHUW\OLQHV
HWF
/,0%,1*$1'%8&.,1*
/,0%,1*$1'%8&.,1*
/,0%,1*$1'7233,1*75((6
,GHQWLI\KD]DUGVVXFKDVVSULQJSROHVFRPSUHVVLRQDQG
WHQVLRQVWUHVVSRLQWVKROHVDQGKDQJLQJOLPEVDQGRUWRSV
&KDLQVDZVDQGVNLGGLQJHTXLSPHQWRUUHODWHGWRROVFDQ
PLQLPL]HRUHOLPLQDWHSUREOHPVVXFKDVVDZNLFNEDFN
OLPEWUHHVSULQJSROHNLFNEDFNDQGWUHHUROO
0RYHEDFNLQWRWKHIHOOLQJDUHDWREHJLQOLPELQJDQGWRSSLQJ
RQO\DIWHUDOOGHEULVSURGXFHGE\WKHIDOOLQJWUHHLVVHWWOHG
DQGDOOSRWHQWLDOKD]DUGVDUHHOLPLQDWHG
&XWOLPEVDQGWRSVIURPIHOOHGWUHHVXVLQJEDODQFHGIRRWLQJ
ERG\SRVLWLRQDQGVDIHVDZKDQGOLQJPHWKRGVLQDFFRUGDQFH
ZLWKXWLOL]DWLRQVWDQGDUGV
6$)(7<,16758&7,216)25/,0%,1*
0DNHVXUH\RXUIRRWLQJLVVRXQGNHHS\RXUEDODQFH
6WDUWOLPELQJIURPWKHEXWWHQGRIWKHWUHHDQGZRUNWRZDUG
WKHWRS
$OZD\VVWD\RQWKHXSKLOOVLGHRIWKHWUHH
$OZD\VOLPEIURPWKHJURXQGGRQRWZDONRQWKHWUHH
:KHQSRVVLEOHVWDQGZLWK\RXUIHHWLQWKHFOHDUDQGOLPE
IURPWKHOHIWVLGHRIWKHWUHH
0DNHVXUHWKHVDZEDULVRQWKHRSSRVLWHVLGHRIWKHWUHH
EHIRUHPRYLQJIRUZDUG'RQRWPRYHZKHQWKHVDZLVRQ
\RXUVLGHRIWKHWUHH
7RSUHYHQWNLFNEDFNVGRQRWOLPEZLWKWKHNLFNEDFNFRUQHU
RIWKHVDZ0DNHVXUHWKHVDZLVDWIXOOVSHHGEHIRUHFXWWLQJ
DOLPE
&DUHIXOO\FXWVSULQJSROHVIURPWKHXQGHUVLGHWRUHOLHYHWKH
WHQVLRQILUVWWKHQFXWLWRII
&XWVXSSRUWLQJOLPEVODVWXVLQJH[WUHPHFDXWLRQDVWKHORJ
PD\UROO
8VHWKHWRSRIWKHEDUZKHQSRVVLEOHWRDYRLGFXWWLQJWRZDUG
\RXUIHHWDQGOHJV
/,0%,1*$1'%8&.,1*
:KHQFXWWLQJODUJHOLPEVEHDOHUWIRUWKHFKDLQELQGLQJDQG
NLFNLQJEDFN8VHWKHOLPEORFNWHFKQLTXH
.HHSDPLQLPXPRIWZRWUHHOHQJWKVDZD\IURPWKHIHOOHU
DQGIDOOLQJWUHHV
:KHQFXWWLQJOLPEVXQGHUWHQVLRQXVHDOLPEORFN
WHFKQLTXH5HOLHYHSUHVVXUHRQWKHOLPEE\PDNLQJWKHILUVW
FXWRQWKHWHQVLRQVLGH7KHVHFRQGFXWVKRXOGVOLJKWO\
E\SDVVWKHILUVWFXWDOORZLQJWKHOLPEWRORFNLQWRLWVHOI
6HHGLDJUDPEHORZ
/,0%,1*$1'%8&.,1* 7(&+1,48()256$)(/<&877,1*635,1*32/(6
7KHVDIHVWZD\WRUHOHDVHDVSULQJSROHLVWRVKDYHDVXIILFLHQW
DPRXQWRIZRRGIURPWKHXQGHUVLGHRIWKHVSULQJSROHWRDOORZ
WKHZRRGILEHURQWKHWRSVLGHWRUHOHDVHVORZO\
7RGHFLGHRSWLPXPSRLQWRIVSULQJSROHUHOHDVHGHWHUPLQHD
VWUDLJKWYHUWLFDOOLQHIURPWKHVWXPSWRZKHUHLWPHHWVDVWUDLJKW
KRUL]RQWDOOLQHIURPWKHKLJKHVWSRLQWRIEHQGDQGFRPHGRZQDW
DEDQJOHIURPZKHUHWKHWZROLQHVLQWHUVHFW
/,0%,1*$1'%8&.,1*
:25.,17+(0267
&20)257$%/(326,7,213266,%/(
0DLQWDLQDILUPVWDQFHFORVH
$QGKROGWKHVDZFORVHWR
\RXUERG\
:KHQSRVVLEOHOHWWKHVDZULGHWKHWUXQN'RQRWPRYH\RXU
IHHWZKHQWKHUXQQLQJVDZLVRQ\RXUVLGHRIWKHWUXQN8VHWKH
FKDLQEUDNHZKHQPRYLQJRYHUWKHWUHHRUORJ
/,0%,1*$1'%8&.,1*
$'',7,21$/7(&+1,48(6)25/,0%,1*
$1'7233,1*
723/2&.7(&+1,48(
$WRSORFNZLOOSUHYHQWWKHWRSRIWKHWUHHIURPNLFNLQJXSDQG
KLWWLQJWKHORJJHU7KHILUVWFXWLVPDGHRQWKHFRPSUHVVLRQVLGH
RIWKHWUHHWKHVHFRQGFXWLVPDGHRQWKHWHQVLRQVLGHRIWKHWUHH
7KHILUVWFXWLVDOZD\VPDGHFORVHVWWRWKHWUHHWRSWKHVHFRQG
FXWLVPDGHFORVHUWRWKHEXWW%RWKFXWVPXVWE\SDVVHDFKRWKHU
VHHGLDJUDP
721*8($1'*5229(7(&+1,48( 2QVWHHSWHUUDLQSUHYHQWWKHWUHHIURPUROOLQJE\XVLQJDWRQJXH
DQGJURRYHWHFKQLTXH)LUVWERUHWKURXJKWKHFHQWHURIWKHWUHH
0DNHWKHVHFRQGFXWRQWKHFRPSUHVVLRQVLGHRIWKHWUHHVOLJKWO\
E\SDVVLQJWKHERUHFXW7KHWKLUGFXWLVPDGHRQWKHRSSRVLWH
VLGHRIWKHWUHHLQOLQHZLWKWKHVHFRQGFXWDQGVOLJKWO\E\SDVVLQJ
WKHILUVWFXW7KLVWHFKQLTXHZLOOSUHYHQWWKHWUHHIURPUROOLQJ
DQGZLOOVHSDUDWHZKHQVNLGGHG
/,0%,1*$1'%8&.,1*
%8&.,1*$77+(67803
2EVHUYHGDQJHU]RQHVEHIRUHEXFNLQJ5HVROYHSRWHQWLDO
SUREOHPVVXFKDVVSULQJSROHVFRPSUHVVLRQDQGWHQVLRQ
VWUHVVSRLQWVWHUUDLQSRWHQWLDOGLUHFWLRQRIUROORIORJDQG
KDQJLQJOLPEVDQGWRSV(VWDEOLVKDQHVFDSHURXWH8VH
VDZVDQGUHODWHGWRROVVDIHO\DQGHIILFLHQWO\
0HDVXUHDQGPDUNORJVWRDQDSSURSULDWHOHQJWKZKLOH
FRQVLGHULQJHDVHRIKDQGOLQJDQGIXUWKHUSURFHVVLQJ
DFFRUGLQJWRSURGXFWLRQUHTXLUHPHQW
%HIRUHFXWWLQJORJVRUVWLFNVFRQVLGHUWKHWUHH
VVWUHVVSRLQWV
WRSURSHUO\SODFH\RXUIHHWDQGERG\8VHWKHFRUUHFWVDZ
KDQGOLQJPHWKRGVWREXFNVDIHO\DQGHIILFLHQWO\DFFRUGLQJWR
\RXUSURGXFWLRQUHTXLUHPHQWV
%8&.,1*$77+(/$1',1*
2EVHUYHGDQJHU]RQHVEHIRUHEXFNLQJ5HVROYHSRWHQWLDO
SUREOHPVVXFKDVVWUHVVSRLQWVVOLSSHU\IRRWLQJIRUHLJQ
REMHFWVLQWKHSLOHURFNVGLUWDQGLQWKHORJQDLOVZLUH
IHQFLQJHWFSRWHQWLDOGLUHFWLRQRIORJUROODQGWKH
SRVVLELOLW\IRUDFKDLQVDZNLFNEDFN
0HDVXUHDQGPDUNORJOHQJWKVDIWHUFRQVLGHULQJTXDOLW\DQG
SURGXFWLRQUHTXLUHPHQWV(VWDEOLVKDQHVFDSHURXWH
%HIRUHFXWWLQJORJVFRQVLGHUORJSLOHFRPSUHVVLRQDQG
WHQVLRQVWUHVVSRLQWVWRSURSHUO\SODFHIHHWDQGERG\&XW
ORJVXVLQJSURSHUIRRWLQJDQGERG\WHFKQLTXHVDVGLFWDWHGE\
ORJSLOHFRPSUHVVLRQDQGWHQVLRQVWUHVVSRLQWVDQGE\XVLQJ
VDZKDQGOLQJPHWKRGVIRUVDIHDQGHIILFLHQWORJSURGXFWLRQ
$ZHGJHZLOONHHSWKHFXWRSHQWRDYRLGVDZSLQFKLQJ
/,0%,1*$1'%8&.,1*
6$)(7<,16758&7,216)25%8&.,1*
3ODQ\RXUFXWVEHIRUHVWDUWLQJWKHVDZ
:RUNIURPWKHEXWWWRWKHWRSRIWKHWUHH:RUNRQWKH
JURXQGQHYHUZDONRQDWUHH
$YRLGXVLQJWKHH[WUHPHWLSRIWKHVDZIRUEXFNLQJWRDYRLG
NLFNEDFN
2QO\VWDUWWKHXQGHUFXWILUVWZKHQWKHORJLVVXSSRUWHGRQ
RQHHQG:KHQWKHORJLVVXSSRUWHGRQWZRHQGV\RX
VKRXOGEHJLQZLWKWKHWRSFXW
2QODUJHORJVKROGWKHVDZKHDGDJDLQVW\RXUWKLJKWRDYRLG
ORVLQJFRQWUROLILWNLFNVEDFN
8VHDZHGJHWRSUHYHQWELQGLQJZKHQEXFNLQJORJV
:DWFKRXWIRUELQGLQJRIWKHVDZDQGSRVVLEOHNLFNEDFN
.HHSWKHVDZRXWRIGLUWDQGURFNV
:RUNRQWKHXSKLOOVLGHLISRVVLEOH,IDWUHHLVLQD
GDQJHURXVSRVLWLRQKDYHLWPRYHG
6WDQGZLWK\RXUOHJVDWVKRXOGHUZLGWKDQGEUDFHGWR
PDLQWDLQVHFXUHIRRWLQJDQGEDODQFH.HHSDVVHFXUHD
IRRWLQJDVSRVVLEOH$YRLGDQRIIEDODQFHSRVLWLRQZKHUH
\RXFDQORVHFRQWURORI\RXUVDZ%HQG\RXUNQHHV
1HYHUOHDYHDORJSDUWLDOO\FXW
0DNHVXUHWKHFKDLQLVQRWWXUQLQJZKLOHZDONLQJWRWKHQH[W
FXW.HHS\RXUILQJHURIIWKHWKURWWOHZKHQZDONLQJ
EHWZHHQFXWV8VHWKHFKDLQEUDNHRUVKXWWKHVDZRIIZKHQ
PRYLQJIHHWRUPRUHRUZKHQVKRUWHUGLVWDQFHVUHTXLUHLW
.HHSDPLQLPXPRIWZRWUHHOHQJWKVDZD\IURPIHOOHUVDQG
DVDIHGLVWDQFHIURPDOORWKHURSHUDWLRQV
.HHSWKHVDZFKDLQVKDUSGHSWKJDXJHVFRUUHFWDQGWKH
FKDLQSURSHUO\WHQVLRQHG
/HWWKHVDZFXWWKURXJKWKHORJGRQ
WIRUFHLW
6.,''(523(5$7,216
6.,''(523(5$7,216
.HHSDVDIHGLVWDQFHEHWZHHQJURXQGZRUNHUVDQGRWKHU
HTXLSPHQWLQGDQJHU]RQHV
*URRPWKHVLWHFRQVWDQWO\E\XVLQJHPSW\VNLGGLQJ
HTXLSPHQWWRSXVKGRZQZLGRZPDNHUVVSHDUVKDQJXSV
VSULQJSROHVDQGEORZGRZQVDQGWREUHDNWUDLOVWRIDFLOLWDWH
VDIHHIILFLHQWVNLGGLQJ
5HPRYH6SHDUV,PPHGLDWHO\
3RVLWLRQWKHPDFKLQHDWIHOOHGWUHHVWRZLQFKVWUDLJKWLQIRU
VDIHHIILFLHQWWUDQVSRUW
:KHQSUHSDULQJWRKRRNDVNLGVHWWKHEUDNHVHFXUHWKH
EODGHRQWKHVNLGGHUUHOHDVHWKHZLQFKDQGSXOOWKH
PDLQOLQHDQGFKRNHUV<RXPD\XVHRWKHUUHODWHGPHWKRGV
WRSUHYHQWSHUVRQDOLQMXU\ZKLOHHIILFLHQWO\DQGVDIHO\
ZLQFKLQJORJV
8VHWKHWKUHHSRLQWWHFKQLTXHRQHKDQGDQGWZRIHHWRUWZR
KDQGVDQGRQHIRRWWRGLVPRXQWWKHPDFKLQH
8VHFKRNHUVDVFORVHWRWKHEXWWRIWKHWUHHRUORJDVLV
SUDFWLFDOIRUHIILFLHQWSURGXFWLRQDQGWRSUHYHQWGDPDJHDQG
SHUVRQDOLQMXU\
8VHVDIHDQGFRUUHFWPHWKRGVWRPRYHWKHORDGHGVNLGGHUWR
WKHODQGLQJ2EVHUYHWKHFRUUHFWVSHHGIRUWKHWHUUDLQ
0LQLPL]HGDPDJHWRUHVLGXDOVWDQGVDQGSRWHQWLDOGDQJHUVWR
\RXUVHOIDQGRWKHUV
5HOHDVHZRRGDWWKHODQGLQJDWWKHSURSHUWLPHDQG
SUHGHWHUPLQHGSRVLWLRQWRSURPRWHVDIHDQGHIILFLHQW
XQORDGLQJ
8VHVDIHDQGFRUUHFWZRRGSLOLQJPHWKRGVDWWKHODQGLQJWR
SURPRWHHIILFLHQWSURFHVVLQJ
6.,''(523(5$7,216
6$)(7<,16758&7,216)25&+2.(56(77,1*
'LUHFW\RXUVNLGGHURSHUDWRUZLWKHVWDEOLVKHGVLJQDOVZKHQ
PRYLQJRUVWRSSLQJWKHPDFKLQH
$OZD\VZHDUJORYHVZKHQVHWWLQJFKRNHUV:DWFKIRU
IUD\HGFDEOH
,I\RXDUHVHWWLQJ\RXURZQFKRNHUVPDNHVXUH\RXUEUDNHV
DUHRQDQGWKHEODGHLVGRZQEHIRUHOHDYLQJ\RXUPDFKLQH
$OZD\VRSHUDWHWKHVNLGGHU
VRUWUDFWRU
VZLQFKIURPWKH
GULYHU
VVHDWQHYHUIURPWKHJURXQG
$OZD\VVHWFKRNHUVIURPWKHEXWWHQGXQOHVVWKHUHLVD
UHDVRQWRVNLGWKHWRSILUVW1HYHUVHWDFKRNHULQWKHPLGGOH
RIDORJ
,IWKHUHOHDVHFKRNHUVDUHKXQJXSLQWKHVNLGOHWWKHVNLGGHU
SXOOWKHPORRVH6WD\FOHDULQFDVHWKH\VQDS
6WD\FOHDURIFDEOHVXQGHUWHQVLRQ
9LVXDOO\LQVSHFWFDEOHDQGFKRNHUVGDLO\IRUEURNHQVWUDQGV
RUFXWV
6WD\FOHDURIORJVWKDWPLJKWUROODQGZDWFKRXWIRU
XQH[SHFWHGFDEOHRUFKDLQPRYHPHQW
6WD\EHKLQGDQGWRWKHVLGHRIPRYLQJORDGVQHYHUULGHLW
:DWFKRXWIRU\RXUKDQGVDQGILQJHUVZKHQUHOHDVLQJ
FKRNHUVWKH\FRXOGJHWSLQFKHGLIWKHORJVVKRXOGUROO
6.,''(523(5$7,216
6$)(7<,16758&7,216)2558%%(57,5('
6.,''(562535(+$8/(56
*(1(5$/6.,'',1*
23(5$7,212)$6.,''(5
:HDUDKDUGKDWVDIHW\ERRWVJORYHVDQGH\HDQGHDU
SURWHFWLRQ
2QO\WUDLQHGDQGDXWKRUL]HGSHUVRQQHOVKRXOGRSHUDWH
VNLGGHUV
.HHSDILUVWDLGNLWILUHH[WLQJXLVKHUDQGRSHUDWRUPDQXDO
RQWKHVNLGGHU
.HHSKDQGVIHHWDQGFORWKLQJDVDIHGLVWDQFHIURPPRYLQJ
SDUWV
.HHSVWHSVIUHHIURPRLOPXGJUHDVHDQGLFH
'R1RW+DYH5LGHUV\RXUVNLGGHULVDRQHPDQYHKLFOH
6HDWEHOWVVKDOOEHLQVWDOOHGDQGZRUQ
8VHWKHWKUHHSRLQWPRXQWLQJGLVPRXQWLQJPHWKRGRQH
KDQGDQGWZRIHHWRURQHIRRWDQGWZRKDQGV
'ULYHVORZO\RYHUURXJKWHUUDLQRUGRZQVWHHSJUDGHV
'RQ
WOHDYHWKHVNLGGHUZKLOHLWLVPRYLQJ
'RQ
WGUDJWKHHPSW\PDLQOLQHRQWKHJURXQG
'RQ
WZLQFKDWVHYHUHDQJOHV
'RQ
WVNLGDFURVVDVWHHSVORSHDOZD\VVNLGXSRUGRZQD
VORSH
2QVWHHSVLGHGKLOOVDYRLGDEUXSWXSKLOOWXUQV%DFN
GRZQKLOOWKHQJRVWUDLJKWXSKLOO
,ILWLVQHFHVVDU\WRSDUNRQDKLOOVHWWKHEUDNHDQGGURSWKH
EODGH8VHDWUHHRUKLJKVWXPSIRUDGGHGEUDFLQJ
5HGXFHVSHHGZKHQWXUQLQJ
'ULYHDWDVDIHVSHHG
5DLVHWKHVNLGGHUEODGHZKHQWUDYHOLQJDQGORZHUWKHEODGH
ZKHQGLVPRXQWLQJWKHPDFKLQH
2EVHUYHWKHDUHDEHIRUHEDFNLQJXS
6.,''(523(5$7,21
8VHDORZHUJHDUZKHQGHVFHQGLQJVWHHSKLOOVRUORZHUWKH
ORDGWRKHOSLQEUDNLQJ'RQ
WXVHWKHEUDNHV\RXPD\ORVH
FRQWURO
6ORZGRZQDQGNHHSWUDFNRI\RXUORDGDQGRWKHUZRUNHUV
ZKHQDSSURDFKLQJRUWXUQLQJRQWKHODQGLQJ
%HIRUH WUDYHOLQJ ZLQFK \RXU ORDG XS FORVH WR WKH VNLGGHU
ZLWKEXWWVRIIWKHJURXQGWRSUHYHQWKDQJXSVDQGUROORYHUV
,I ORJV ELQG DJDLQVW VWXPS RU URFN UHSRVLWLRQ PDFKLQH RU
XQKRRN 'RQ¶W JR LQ DQG WU\ WR FXW VWXPS RU GRQ¶W NHHS
SXOOLQJHVSHFLDOO\LIRWKHUVDUHLQWKHDUHD
2SHUDWRUV6KDOO1RW([FHHG0DQXIDFWXUHU
V
5HFRPPHQGDWLRQV,Q7KH2SHUDWLRQ2I6NLGGHUV
3,/,1*'(&.,1*
3,/,1*'(&.,1*2):22'352'8&76
'2EVHUYHGDQJHU]RQHVE\NHHSLQJDVDIHGLVWDQFHEHWZHHQ
\RXRWKHUVDQGDGMDFHQWSLOHV
',QLWLDOO\JURRPWKHVLWHWROHYHOWKHSLOLQJDUHD5HPRYH
ZLGRZPDNHUVKDQJXSVVSULQJSROHVDQGEORZGRZQV
IURPWKHSLOLQJDUHD*URRPWKHVLWHGXULQJSLOLQJWRNHHS
WKHDUHDFOHDURIEUXVKDQGGHEULV
'3RVLWLRQSLOHVWRDOORZVDIHDFFHVVRIPDFKLQHU\.HHSWKH
SLOHOHYHODQGXQLIRUPWRHOLPLQDWHSURWUXVLRQVIURPWKHSLOH
IDFH(QVXUHWKDWGHFNVRUSLOHVKDYHSURGXFWVSODFHGLQD
SRVLWLRQWKDWPLQLPL]HVUROOLQJDQGVKLIWLQJRUFDXVLQJ
GHFNVSLOHVWREUHDNGRZQ
'3RVLWLRQPDFKLQHU\WRDOORZVDIHSLOLQJ.HHSWKHSLOHKHLJKW
ZLWKLQRSHUDWLQJFDSDELOLWLHVRISLOLQJDQGORDGLQJ
HTXLSPHQW(QVXUHWKDWGHFNVRUSLOHVKDYHZRRGSODFHGLQD
SRVLWLRQWRPLQLPL]HUROOLQJVKLIWLQJRUSLOHEUHDNGRZQV
3,/,1*'(&.,1*
6$)(7<,16758&7,216)25.18&./(%220
/2$'(56
,QVSHFWWKHPDFKLQHDQGFOHDUWKHZRUNDUHDRISHUVRQQHO
EHIRUHVWDUWLQJ
<RXUORDGHULVGHVLJQHGIRUOLIWLQJDQGORDGLQJGRQ
WDOORZ
LWWREHXVHGIRUDQ\WKLQJHOVH
,IHTXLSSHGZLWKVWDELOL]HUVORZHUWKHPRQDILUPIRRWLQJ
EHIRUHGRLQJDQ\ZRUNZLWKWKHORDGHU
2EVHUYHWKHZRUNDUHDEHIRUHVWDUWLQJZRUNDQGZKLOH
ORDGLQJWKHUHPD\EHSHRSOHRUREMHFWVLQ\RXUZRUNDUHD
$OOWUXFNGULYHUVVKDOOEHDVDIHGLVWDQFHLQIURQWRIDQGRII
WRRQHVLGHRIWKHORDGLQJRSHUDWLRQVDQGLQYLHZRIWKH
RSHUDWRUDWDOOWLPHV+DUGKDWVDUHUHTXLUHGE\DOORSHUDWRUV
1HYHUOHWDQ\RQHJHWXQGHU\RXUERRPRUORDG
:KHQZRUNLQJQHDUSRZHUOLQHVNHHSDFOHDUDQFHRIIHHW
LIWKHYROWDJHLV.YRUEHORZ)RUHDFKRQH.YRYHU
.YDGGDQDGGLWLRQDOIRXULQFKHV,IWKHRSHUDWRUFDQQRW
PDLQWDLQWKHUHTXLUHGFOHDUDQFHE\YLVXDOPHDQVDSHUVRQ
PXVWEHGHVLJQDWHGWRREVHUYHDQGJLYHWLPHO\ZDUQLQJLI
YLRODWLRQRIWKHFOHDUDQFHVPLJKWRFFXU
%HIRUHGLVPRXQWLQJORZHUWKHERRPRQWRWKHERRPUHVWRU
WKHJURXQG
%HIRUHWUDYHOLQJORZHUDQGVHFXUHWKHERRPUDLVHWKH
VWDELOL]HUVGLVHQJDJHWKHSXPSDQGVHFXUHDQ\SD\ORDG
.QRZDOOWKHFOHDUDQFHGLPHQVLRQVIRU\RXUIRUZDUGHU
&KHFNWKHPDJDLQVWFOHDUDQFHUHTXLUHPHQWVDORQJ\RXUURXWH
RIWUDQVSRUW
%HDZDUHRIEOLQGVSRWVIURPWKHRSHUDWRU
VVHDW
3,/,1*'(&.,1*
+$1'6,*1$/6)25%220(48,30(17
23(5$7,21
32:(5/,1(&/($5$1&(6
$YRLGDOOOLYHRYHUKHDGHOHFWULFDOGLVWULEXWLRQRUWUDQVPLVVLRQ
OLQHVXQWLOWKHOLQHKDVEHHQYLVLEO\JURXQGHGDQGWKHRZQHURI
WKHXWLOLW\LQGLFDWHVWKHDUHDLVVDIH:KHQDOLQHFDQQRWEHGH
HQHUJL]HGFKHFN\RXUVWDWH
VUHJXODWLRQVDQGUHFRPPHQGDWLRQV
IRUVDIHFOHDUDQFH
(48,30(170$,17(1$1&(
(48,30(170$,17(1$1&(
$OOWRRRIWHQPDFKLQHU\UHDFKHVDVWDWHRIGLVUHSDLU7KLVLVQRW
RQO\GDQJHURXVWRWKHRSHUDWRUEXWDOVRLVDILQDQFLDOORVVWRWKH
RZQHU7KLVORVVFDQEHDYRLGHGE\GDLO\FDUHFKHFNVRQWKH
HTXLSPHQWDQGUHSODFLQJSDUWVEHIRUHLQMXU\RUORVVRFFXUV
6RPHLWHPVKRZHYHUVPDOOFDQFDXVHGLVDEOLQJLQMXULHVDQG
ORVVWLPH0DQ\KD]DUGVDUHFUHDWHGE\LJQRULQJVHHPLQJO\
LQQRFHQWVLWXDWLRQVVXFKDVFRQWUROOHYHUVZLWKRXWNQREV
$OOKHDY\HTXLSPHQWKDVVDIHW\IHDWXUHVWRSURWHFWWKHRSHUDWRU
GRQRWWDNHWKHPIRUJUDQWHG&KHFNDOOK\GUDXOLFV\VWHPVGDLO\
IRUOHDNVWKDWPLJKWFDXVHDVORZEODGHSRRUVWHHULQJRUSRRU
EUDNLQJDFWLRQ&KHFNDOOVFUHHQVGDLO\IRUGLVUHSDLUWKH\
SURWHFW\RXIURPEUDQFKHVORJVO\LQJGHEULVDQGFDEOHZKLS
0DNHVXUHDOOZLQGRZVDUHFOHDQ$IHZPRPHQWVRI\RXUWLPH
VSHQWLQDVDIHW\FKHFNIRUGHIHFWVFDQHQVXUH\RXDQG\RXU
HPSOR\HUDSURILWDEOHDQGDFFLGHQWIUHHZRUNLQJGD\
0$&+,1(5<0$,17(1$1&(&+(&.6
9LVXDO$OOIOXLGOHYHOVFKHFNIRUOHDNV
9LVXDO/RRVHQXWVEROWVFUDFNVKRVHVSLQVDQGGDPDJH
9LVXDO7LUHVIRUSUHVVXUHGDPDJHDQGOXJEROWWLJKWQHVV
9LVXDO$OOFDEOHULJJLQJRUERRPVIRUGDPDJH
9LVXDO(TXLSPHQWIUHHRIGHEULV
9LVXDO)LUHH[WLQJXLVKHUDQGILUVWDLGNLW
9LVXDO&KHFNIRUYDQGDOLVP
&KHFNDOOJDXJHVWREHVXUHWKH\DUHZRUNLQJSURSHUO\
%HVXUHDOOVWHSVDQGSODWIRUPVDUHIUHHRIRLODQGGHEULV
(48,30(170$,17(1$1&(
0$,17$,1,1*7+(6.,''(5
&RQGXFWDGDLO\FLUFOHFKHFNEHIRUHRSHUDWLQJVNLGGLQJ
HTXLSPHQW7KHVHFKHFNVVKRXOGLQFOXGHWLUHVWUDFNV
HQJLQHK\GUDXOLFVDQGZLQFKDQGFDEOHULJJLQJIRUIUD\VDQG
FRQGLWLRQ$OVRFKHFNUHODWHGHTXLSPHQWIRUIOXLGOHYHOV
OHDNVORRVHZKHHOQXWVEROWVDQGFUDFNVDQGGDPDJH7KHVH
FKHFNVVSRWSUHVHQWRUSRWHQWLDOGDPDJHWKDWMHRSDUGL]HVDIH
DQGHIILFLHQWHTXLSPHQWRSHUDWLRQ
)ROORZPDQXIDFWXUHU
VSURFHGXUHVIRUVWDUWLQJHTXLSPHQWWR
UHGXFHPDLQWHQDQFHDQGRSWLPL]HVDIHRSHUDWLRQ
3HUIRUPRSHUDWLRQDOFKHFNVZKLOHVHDWHGLQWKHRSHUDWRU
V
SRVLWLRQ:LWKWKHHQJLQHUXQQLQJDQGPD[LPXPYLVLELOLW\
FKHFNJDXJHVDQGPRYHFRQWUROVPDQXDOO\WRHQVXUHDOOSDUWV
RIWKHVNLGGLQJHTXLSPHQWDUHZRUNLQJDFFRUGLQJWRWKH
PDQXIDFWXUHU
VVSHFLILFDWLRQV
%HIRUHPRYLQJHTXLSPHQWFRQGXFWDYLVXDOLQVSHFWLRQRIWKH
DUHDWRHQVXUHWKDWQRRQHLVLQWKHRSHUDWRU
VSDWK
(QVXUHSHUVRQDOVDIHW\E\ORZHULQJDQGGHDFWLYDWLQJ
SRZHUHGHTXLSPHQWVXFKDVEXFNHWVEODGHVJUDSSOHVFODPV
DQGIRUNV6HWKDQGEUDNHVXVLQJFRUUHFWSURFHGXUHVZKHQ
OHDYLQJVNLGGLQJHTXLSPHQWXQDWWHQGHG
3HUIRUPVKXWGRZQSURFHGXUHVDFFRUGLQJWRPDQXIDFWXUHU
V
VSHFLILFDWLRQV,PPRELOL]LQJXQDWWHQGHGVNLGGLQJHTXLSPHQW
E\ORZHULQJWKHEODGHZLOOSUHYHQWDFFLGHQWDOPRYHPHQW
7XUQRIIPDVWHUVZLWFKWRDYRLGHOHFWULFDOVKRUWLQJ
0DLQWDLQHTXLSPHQWE\OXEULFDWLQJDFFRUGLQJWR
PDQXIDFWXUHU
VVSHFLILFDWLRQV&OHDUDOOGHEULVIURPWKH
HQJLQHPDQLIROGEUDNHZLQFKUDGLDWRUDQGRWKHUDUHDVRI
HTXLSPHQWWRSUHYHQWILUHDQGVSRWSUREOHPVRUHTXLSPHQW
PDOIXQFWLRQV
$OZD\VNHHSSURSHUUHFRUGVILOORXWGDLO\UHSRUWV
(48,30(170$,17(1$1&(
0$,17$,1,1*3,/,1*(48,30(17
&RQGXFWDGDLO\FLUFOHFKHFNEHIRUHRSHUDWLQJSLOLQJ
HTXLSPHQW&KHFNWLUHVWUDFNVHQJLQHDQGK\GUDXOLFV$OVR
LQVSHFWUHODWHGHTXLSPHQWIRUIOXLGOHYHOVOHDNVORRVHZKHHO
QXWVEROWVFUDFNVDQGGDPDJH7KLVZLOOKHOSVSRWSUHVHQW
RUSRWHQWLDOGDPDJHEHIRUHVNLGGLQJRSHUDWLRQVEHJLQ,WDOVR
ZLOORSWLPL]HVDIHDQGHIILFLHQWRSHUDWLRQRIHTXLSPHQW
6WDUWSLOLQJHTXLSPHQWIROORZLQJPDQXIDFWXUHU
VSURFHGXUHV
WRUHGXFHPDLQWHQDQFHDQGRSWLPL]HVDIHVPRRWKRSHUDWLRQ
3HUIRUPRSHUDWLRQDOFKHFNVZKLOHVHDWHGLQWKHRSHUDWRU
V
SRVLWLRQ:LWKWKHHQJLQHUXQQLQJDQGPD[LPXPYLVLELOLW\
FKHFNJDXJHVDQGPRYHFRQWUROVPDQXDOO\WRHQVXUHDOOSDUWV
RIWKHSLOLQJHTXLSPHQWDUHZRUNLQJDFFRUGLQJWRWKH
PDQXIDFWXUHU
VVSHFLILFDWLRQV
%HIRUHPRYLQJHTXLSPHQWFRQGXFWDYLVXDOLQVSHFWLRQRIWKH
DUHDWRHQVXUHWKDWQRRQHLVLQWKHRSHUDWRU
VSDWK
/RZHUDQGGHDFWLYDWHSRZHUHGHTXLSPHQWVXFKDVFODPV
JUDSSOHVDQGIRUNV:KHQOHDYLQJWKHHTXLSPHQW
XQDWWHQGHGVHWKDQGEUDNHVWRHQVXUHSHUVRQDOVDIHW\
3HUIRUPVKXWGRZQSURFHGXUHVDFFRUGLQJWRPDQXIDFWXUHU
V
VSHFLILFDWLRQV,PPRELOL]HXQDWWHQGHGSLOLQJHTXLSPHQWE\
ORZHULQJJUDSSOHVFODPVRUIRUNVWRVHFXUHDJDLQVW
DFFLGHQWDOPRYHPHQW7XUQRIIWKHPDVWHUVZLWFKWRSUHYHQW
HOHFWULFDOVKRUWLQJ
+HOSPDLQWDLQSLOLQJHTXLSPHQWE\OXEULFDWLQJDFFRUGLQJWR
PDQXIDFWXUHU
VVSHFLILFDWLRQV&OHDUDOOGHEULVIURPSLOLQJ
HTXLSPHQWWRSUHYHQWMDPPLQJDQGWRVSRWGHYHORSLQJ
SUREOHPVRUHTXLSPHQWPDOIXQFWLRQV
$OZD\VNHHSSURSHUUHFRUGVILOORXWGDLO\UHSRUWV
(48,30(170$,17(1$1&(
&$86(62)),5(
(/(&75,&$/
6XUYH\VKDYHVKRZQWKDWRQHWKLUGRIWKHILUHVLQYHVWLJDWHG
VWDUWHGEHFDXVHRIVKRUWFLUFXLWVGDPDJHGZLULQJLVRIWHQWKH
FDXVH:LULQJDQGEDWWHU\FDEOHVDUHVXEMHFWWRXQXVXDOZHDU
:LULQJLQVXODWLRQFDQEHFRPHDEUDGHGRUWRUQFDXVLQJVKRUW
FLUFXLWV7KLVFRQGLWLRQFRPELQHGZLWKDFFXPXODWLRQVRIRLO
DQGIXHOVRDNHGGHEULVFDQFDXVHDILUH
%5$.(6
$QRWKHUFDXVHRIILUHLVRYHUKHDWHGEUDNHV6NLGGHUVDUH
HTXLSSHGZLWKDSDUNLQJRUDX[LOLDU\EUDNHZKLFKFDQEHXVHGWR
KROGWKHVNLGGHUVWDWLRQDU\,IWKHRSHUDWRUWUDYHOVZLWKWKHEUDNH
HQJDJHGLWZLOORYHUKHDW,IQRWGHWHFWHGLQWLPHWKLVFDQFDXVH
DILUH
(48,30(170$,17(1$1&(
(1*,1($5($
$QRWKHUFDXVHRIILUHLVIODPPDEOHPDWHULDOFRPLQJLQFRQWDFW
ZLWKKRWHQJLQHSDUWV+RXVHNHHSLQJLVWKHNH\WRSUHYHQWLRQLQ
WKLVW\SHRIILUH1HZO\SXUFKDVHGZRRGVHTXLSPHQWLV
UHODWLYHO\VDIHIURPILUHEXWZKHQZRUNLQJLQWKHIRUHVWLW
V
LPSRVVLEOHWRSUHYHQWVPDOOSDUWLFOHVRIGU\OHDYHVQHHGOHV
EUDQFKHVDQGWZLJVIURPEXLOGLQJXSLQWLJKWFRUQHUVRIWKH
PDFKLQH$OOGHEULVPXVWEHUHPRYHGGDLO\
'HEULVIXHODQGRLODUHPRVWOLNHO\WRDFFXPXODWHLQWKHORZHU
SRUWLRQVRIWKHIURQWIUDPHDVVHPEO\DQGWUDQVPLVVLRQ
FRPSDUWPHQW
),5(35(9(17,21*8,'(/,1(6
'
.HHSWKHHQJLQHFRPSDUWPHQWFOHDQ
'
6WRSOHDNVDQGLQVSHFWWKHHOHFWULFDOV\VWHP
'
6WRSWKHHQJLQHZKLOHIXHOLQJDQG1R6PRNLQJ
'
0DLQWDLQDFKDUJHGILUHH[WLQJXLVKHU
'
5HPRYHRLOWZLJVDQGGHEULVGDLO\
(48,30(170$,17(1$1&(
),5((;7,1*8,6+(56
)LUHH[WLQJXLVKHUVVKRXOGEHSURYLGHGRQHDFKMREVLWHDQGRQ
HDFKSLHFHRIPRELOHHTXLSPHQW7KH\DOVRVKRXOGEHWKHSURSHU
W\SHDQGVL]HIRUWKHVLWXDWLRQ
)XHOVKRXOGEHVWRUHGLQDQDSSURYHGFRQWDLQHUDQGNHSWLQDVDIH
SODFH
)8(/6725$*(
.HHSRQO\ZKDW
VQHFHVVDU\/DUJHDPRXQWVPD\UHTXLUHD
VWRUDJHSHUPLWFKHFNZLWKWKH)LUH'HSDUWPHQW
6WRUHRXWVLGHLISRVVLEOHRULQDZHOOYHQWLODWHGDUHDIUHHRI
LJQLWLRQVRXUFHVQRVPRNLQJ
6WRUHLQDSSURYHGVDIHW\FDQV
3RVWD12602.,1*VLJQ
7KH6HFUHWWRILUHFRQWUROLVWKHWKUHHVWHSVWKDWPDNHDILUH
6NLS$6WHS$QG6WRS$)LUH
)(//(5%81&+(56$)(7<
)(//(5%81&+(56$)(7<
&KHFNDOOK\GUDXOLFOLQHVDQGILWWLQJVWKHK\GUDXOLFIOXLG
OHYHODQGWKHPRWRURLOOHYHOEHIRUHRSHUDWLQJ
&KHFNIRUYDQGDOLVPEHIRUHRSHUDWLQJ
&KHFNDOOSLQVDQGWKHFDUULHU
VOLIWDUPOLQNDJHEHIRUH
RSHUDWLQJ
1HYHUVWDUWWKHFDUULHUXQWLOHYHU\RQHLVFRPSOHWHO\FOHDURI
WKHVKHDU
'RQRWPDNHDQ\DGMXVWPHQWVRUUHSDLUVWRWKHVKHDUZKLOH
WKHFDUULHULVUXQQLQJRUWKHRSHUDWRULVLQWKHFDUULHU
VFDE
1HYHUOHDYHWKHVKHDUXQDWWHQGHGZKLOHWKHFDUULHULV
UXQQLQJ
1HYHUOHDYHDWUHHLQWKHVKHDUXQDWWHQGHG
1HYHUHOHYDWHWKHVKHDUWRZRUNRQLWXQOHVVLWLVVXSSRUWHG
1HYHUHOHYDWHDQXQDWWHQGHGVKHDU
'RQRWDWWHPSWWRVKHDUWUHHVODUJHUWKDQWKHVKHDU
VUDWHG
FDSDFLW\
'RQRWDOORZDQ\RQHZLWKLQWZRWUHHOHQJWKVZKLOHWKHVKHDU
LVLQRSHUDWLRQ
'RQRWXVHWKHVKHDUIRUDGR]HUEODGH
:KHQZRUNLQJRQDQLQFOLQHGRQRWZRUNDURXQGWKHVORSH
:RUNXSKLOODQGGHDGKHDGGRZQKLOOWKHPDFKLQHLVPRUH
VWDEOHWKLVZD\$VDJHQHUDOUXOHD1VORSHLVWKH
UHFRPPHQGHGPD[LPXPIRUVDIHRSHUDWLRQV
$IWHUVKHDULQJWKHWUHHFDUU\LWORZ&DUU\LQJDWUHHKLJK
FDQWLSWKHPDFKLQHDQGFDXVHVHYHUHGDPDJHWRWKHERRPRU
ORDGHUDUPV
0DNHJUDGXDOPRWLRQVZLWKWKHPDFKLQHZKLOHKROGLQJD
WUHH4XLFNPRYHVPD\FDXVHWRSVWREUHDNRIIDQGIDOORQ
WKHFDE
)(//(5%81&+(56$)(7<
'RQ
WSLOHWUHHVLQEXQGOHVODUJHUWKDQVNLGGHUVFDQKDQGOH
2QO\WUDLQHGDQGDXWKRUL]HGSHUVRQQHOVKRXOGRSHUDWH
HTXLSPHQW
.HHSWKHPDQXIDFWXUHU
VRSHUDWRU
VPDQXDOZLWKWKH
HTXLSPHQWDWDOOWLPHV
'RQRWH[FHHGWKHPDQXIDFWXUHU
VUHFRPPHQGDWLRQV
&DUU\LQJWUHHVXSRUGRZQDVORSHFDOOVIRUVSHFLDOFDUH:KHQ
FDUU\LQJWUHHVGRZQKLOOWLOWWKHVKHDUKHDGEDFNVRWKDWWKHWUHHLV
OHDQLQJEDFNRYHUWKHPDFKLQH:KHQFDUU\LQJWUHHVXSKLOOWLOW
WKHVKHDUKHDGRXWVRWKDWWKHWUHHOHDQVDZD\IURPWKHPDFKLQH
)25025(,1)250$7,21 )RUPRUHLQIRUPDWLRQRQORJJLQJVDIHW\FRQWDFW
1+7LPEHU+DUYHVWLQJ&RXQFLO $PHULFDQ3XOSZRRG$VVRFLDWLRQ 2FFXSDWLRQDO6DIHW\+HDOWK$VVRF
8QLYHUVLW\RI1HZ+DPSVKLUH
&RRSHUDWLYH([WHQVLRQ
8QLYHUVLW\RI1HZ+DPSVKLUH
7KRPSVRQ6FKRRORI$SSOLHG6FLHQFHV /RJJLQJHTXLSPHQWPDQXIDFWXUHUVDOVRFDQVXSSO\\RXU
FRPSDQ\ZLWKLQIRUPDWLRQDERXWORJJLQJVDIHW\PDFKLQHU\
PDLQWHQDQFHDQGHTXLSPHQWRSHUDWLRQ
*/266$5<
*/266$5<
BACKCUT:7KHILQDOFXWLQIHOOLQJDWUHH,WLVPDGHRQWKHVLGH
RSSRVLWHWKHQRWFKDQGGLUHFWLRQRIIDOO
BALLISTIC NYLON:$IDEULFRIKLJKWHQVLOHSURSHUWLHVGHVLJQHG
WRSURYLGHSURWHFWLRQIURPODFHUDWLRQV
BARBER CHAIR:$WUHHZKLFKVSOLWVXSIURPWKHEDFNFXW
LQVWHDGRIEUHDNLQJWRWKHXQGHUFXW
BIND OR BOUND:7KHFRPSUHVVLRQFUHDWHGE\DFXWLQDWUHHRU
ORJGXHWRXQHYHQWHUUDLQRUFRQWDFWSUHVVXUHIURPRWKHUWUHHVRU
ORJV
BINDER:$FKDLQQ\ORQVWUDSRUZLUHURSHXVHGWRELQGDORDG
RIORJV
BORE CUT$WHFKQLTXHXVHGWRHVWDEOLVKDKLQJH
BORING:%HJLQQLQJDFXWXVLQJWKHDWWDFNVHFWLRQRIWKHWLSRI
WKHEDUDOORZLQJWKHFKDLQWRFXWWKURXJKDORJRUWUHH
BUCK:7RVDZIHOOHGWUHHVLQWRVKRUWHUOHQJWKV
BUDDY SYSTEM:7KHSURFHGXUHLQZKLFKWZRZRUNHUVDUH
DOZD\VZLWKLQVLJKWDQGRUVRXQGRIHDFKRWKHU
CABLE:$ZRYHQZLUHURSH,QORJJLQJDZLUHURSHLV
JHQHUDOO\WHUPHGDOLQH
CALKED BOOTS:%RRWVFRQWDLQLQJVWHHOFDONVRUVSLNHVLQWKH
KHHODQGVROHV
CHAIN BRAKE:$VDIHW\GHYLFHZKLFKVWRSVWKHVDZFKDLQ
CHAIN SAW:$VDZSRZHUHGE\DQHQJLQHRUPRWRULQZKLFK
WKHFXWWLQJHOHPHQWVDUHRQDFLUFXODUFKDLQ
*/266$5<
CHOKER:$VKRUWOHQJWKRIZLUHURSHXVHGWRDWWDFKORJVWRD
PDLQOLQH,WLVSURYLGHGZLWKDVOLGLQJKRRNDQGDIHUUXOHDW
HLWKHURUERWKHQGV
COLD DECK:$QXPEHURIORJVSLOHGRUGHFNHGIRUVWRUDJHRU
IRUKDQGOLQJSXUSRVHV,WLVNQRZQDVD+RW'HFNZKHQORJV
DUHWDNHQIURPLWEHIRUHWKHGHFNLVFRPSOHWHG
CUTTER (Feller, Bucker):2QHZKRIHOOVEXFNVRUOLPEVWUHHV
DANGER TREE:$VWDQGLQJOLYHRUGHDGWUHHLQFOXGLQJVQDJV
ZLWKHYLGHQFHRIGHWHULRUDWLRQRUSK\VLFDOGDPDJHWRWKHURRW
V\VWHPWUXQNRUVWHP7KHGHJUHHDQGGLUHFWLRQRIOHDQLVDOVR
DQLPSRUWDQWIDFWRUZKHQGHWHUPLQLQJLIDWUHHLVGDQJHURXV
DIRECTIONAL FELLING:$IHOOLQJWHFKQLTXHWRFRQWUROWKH
GLUHFWLRQRIIDOORIDWUHH
ESCAPE ROUTE:$SUHSODQQHGDQGEUXVKHGRXWHVFDSHURXWH
XVHGE\IHOOHUVWRPDNHWKHLUZD\LQWRWKHFOHDUZKHQWKHEDFN
FXWLVFRPSOHWHG
FALLER:$ZRUNHUZKRIHOOVWUHHVIRUORJJLQJSXUSRVHV
8VXDOO\KHVKHDOVRLVDEXFNHU
FELL (cut):3URFHVVRIVHYHULQJDWUHHIURPWKHVWXPSVRWKDWLW
GURSVWRWKHJURXQG
FELLERS::RUNHUVZKRFXWGRZQWUHHV
FOPS: )DOOLQJ2EMHFW3URWHFWLYH6WUXFWXUH
GUARD:$Q\SURWHFWLYHGHYLFHDURXQGDPDFKLQHRUGDQJHU
]RQH
HAZARD:$FRQGLWLRQLQZKLFKULVNLVLQYROYHG
HINGE7KHZRRGZKLFKFRQWUROVWKHWUHHDVLWIDOOVWRWKH
JURXQG
*/266$5<
HOLDING WOOD:7KHDSSURSULDWHDPRXQWRIZRRGOHIWDWWKH
EDFNRIWKHWUHHWRKROGWKHWUHHVWDEOHXQWLOUHDG\IRUUHOHDVH
HOT DECK:$ODQGLQJZKHUHORJVDUHFRQVWDQWO\EHLQJPRYHG
KERF:7KHZLGWKRIDQ\VDZFXW
KICKBACK:6WURQJWKUXVWRIWKHVDZEDFNWRZDUGWKHFXWWHU
JHQHUDOO\UHVXOWLQJIURPLPSURSHUXVHRIWKHVDZ.LFNEDFNDOVR
UHIHUVWRDWUHHMXPSLQJEDFNRYHUWKHVWXPSWRZDUGWKHFXWWHU
KNUCKLEBOOM:$K\GUDXOLFORDGHU
LANDING:$WHUPXVHGWRLQGLFDWHDSODFHZKHUHORJVDUH
KDXOHGSLOHGVWRUHGRUGXPSHG
LIMB:7RUHPRYHWKHOLPEVIURPDIHOOHGWUHH
LODGED TREE:7UHHWKDWKDVQRWIDOOHQWRWKHJURXQGDIWHU
EHLQJSDUWLDOO\RUZKROO\VHSDUDWHGIURPWKHVWXPSRURWKHUZLVH
GLVORGJHGIURPLWVQDWXUDOSRVLWLRQ
LOG:7UHHVHJPHQWVXLWDEOHIRUVXEVHTXHQWSURFHVVLQJLQWR
OXPEHUSXOSZRRGRURWKHUZRRGSURGXFWV
LOGGER:$Q\RQHHQJDJHGLQSUHSDULQJWUHHVDQGWUDQVSRUWLQJ
WKHPWRWKHVDZPLOO&OHUNVFRRNVDQGRWKHUSHUVRQVLQYROYHG
LQDORJJLQJRSHUDWLRQEXWQRWDFWXDOO\HQJDJHGLQKDQGOLQJWKH
WUHHVDUHQRWFRQVLGHUHGORJJHUV
LOGGING:$OORSHUDWLRQVUHODWLQJWRWKHIHOOLQJRIWUHHVFXWWLQJ
IHOOHGWUHHVLQWRVXLWDEOHOHQJWKV\DUGLQJOLPELQJGHEDUNLQJ
JUDGLQJORDGLQJKDXOLQJXQORDGLQJDQGVWRULQJLQGHFNVXQWLO
WUDQVIRUPHGIURPWLPEHUWRZRRGSURGXFWV
LOGGING MACHINE:$PDFKLQHXVHGRULQWHQGHGIRUXVHWR
\DUGPRYHRUKDQGOHORJVWUHHVFKXQNVHDUWKHQPDWHULDODQG
UHODWHGPDWHULDORUHTXLSPHQW
*/266$5<
NOTCH: AZHGJHVKDSHGFXWRXWZKLFKFUHDWHVWKHRSHQLQJIRU
WKHWUHHWRIDOOLQWR,WDOVRFRQWUROVGLUHFWLRQRIIDOO
PPE3HUVRQDO3URWHFWLYH(TXLSPHQW7KHVSHFLILF26+$
DFFHSWHGLWHPVRISURWHFWLYHFORWKLQJZRUQE\ORJJHUV
PULPWOOD::RRGFXWRUSUHSDUHGIRUXVHE\DSXOSPLOO
ROOT WAD:0DVVRIURRWVDQGGLUWZKLFKSURMHFWVDERYHWKH
JURXQGOHYHODIWHUDWUHHKDVEHHQEORZQRUSXVKHGRYHU
ROPS: 5ROORYHU3URWHFWLYH6\VWHPRU6WUXFWXUH
SAW DOGS:7KHPHWDOSODWHFRQWDLQLQJWKUHHWRILYHSRLQWVLQ
IURQWRIWKHFKDLQVDZKRXVLQJSURWUXGLQJSDUDOOHOZLWKWKHEDU
7KH\DFWDVDSLYRWSRLQWIRUWKHVDZGXULQJFXWWLQJ
SAW LOG:7KHVHFWLRQVRIDWUHHRIVXLWDEOHFKDUDFWHUDQGOHQJWK
IRUKDQGOLQJLQDVDZPLOODQGIRUXVHDVOXPEHU
SELECTIVE LOGGING: ChoosingWUHHVLQDFHUWDLQDUHDIRU
ORJJLQJSXUSRVHV
SET BACK:2FFXUVZKHQDWUHHVHWWOHVEDFNRSSRVLWHWRWKH
LQWHQGHGGLUHFWLRQRIDIDOO7KLVFUHDWHVDKD]DUGRXVVLWXDWLRQ
ZKHQWKHORJJHUORVHVFRQWURORIDWUHH
SKID:7RGUDJORJVRUKDXOWUHHVIURPWKHVWXPSWRDODQGLQJ
SKIDDER:$WUDFNXQLWRUUXEEHUWLUHGPDFKLQHZKLFKWUDQVSRUWV
ORJVWRDGHVLJQDWHGODQGLQJ
SNAG:$GHDGVWDQGLQJWUHH$OVRDEURNHQRIIWUHHRUEUDQFKRI
DWUHH
SPRINGPOLE:7UHHRUEUDQFKWKDWLVXQGHUWHQVLRQ
3- (THREE) POINT TECHNIQUE:8VLQJWZRKDQGVDQGRQHIRRW
RUWZRIHHWDQGRQHKDQGZKHQPRXQWLQJRUGLVPRXQWLQJD
SLHFH
© Copyright 2026 Paperzz