Field Guide for Sustainable Construction June 2004 Produced for: Pentagon Renovation and Construction Program Office Safety Sustainability and Environment IPT and Washington Headquarters Services Defense Facilities Directorate Produced by: Partnership for Achieving Construction Excellence The Pennsylvania State University University Park, PA Pentagon Renovation and Construction Program Office Arlington, VA Editor in Chief Michael H. Pulaski, Ph.D. Candidate, The Pennsylvania State University Acknowledgements: The Field Guide for Sustainable Construction is the result of the dedicated efforts of many individuals and organizations. We gratefully acknowledge and thank the following for their commitment to the success of this project. Partnership for Achieving Construction Excellence Research Team at The Pennsylvania State University: Dr. Michael Horman – Assistant Professor of Architectural Engineering Dr. David Riley – Associate Professor of Architectural Engineering Peter Dahl - Graduate Research Assistant Andrew Hickey - Graduate Research Assistant Anthony Lapinski - Graduate Research Assistant Christopher Magent - Graduate Research Assistant Noah Shaltes - Graduate Research Assistant Editorial Board: Dr. Teresa Pohlman, Pentagon Renovation and Construction Program Office Walter Nielsen, Pentagon Renovation and Construction Program Office Nick Holland, AMEC Construction Company Wayne Snesrud, Pentagon Renovation and Construction Program Office Terry Watson, Washington Headquarters Services, Defense Facilities Directorate Karin Geifer, Sebesta Blomberg and Associates Flo Meyers, Pentagon Renovation and Construction Program Office John Timothy Mitch, Hensel Phelps Construction Company Stever Carter, Washington Headquarters Services, Defense Facilities Directorate Bradley Provancha, Washington Headquarters Services, Defense Facilities Directorate William Battle, Washington Headquarters Services, Defense Facilities Directorate Michael Bryant, Washington Headquarters Services, Defense Facilities Directorate Gail Vittori, Center for Maximum Potential Building Systems Professional Reviewers: Kimberly Pexton, James G. Davis Construction Corporation Christopher Hewitt, American Institute of Steel Construction Christopher T. Scanlon, James G. Davis Construction Corporation Keith Bush, Truland Systems Corporation Laura Slingerland, Southland Industries Alison Kinn, Environmental Protection Agency Pamela Kogan, Environmental Protection Agency The Pennsylvania State University Contributors: Keith Beidel, Rajitha Gopinath, Amy Grommes, Heidi Kunsch, Davni Perera, Priya Premchandran, Andrew Tech, Joshua Ward Editing and Formatting: Bill Hopper, Pentagon Renovation and Construction Program Office Daniel Guido, Pentagon Renovation and Construction Program Office Peter Dahl, The Pennsylvania State University Cover Design by: Tony Lapinski, The Pennsylvania State University Published by: The Partnership for Achieving Construction Excellence The Pennsylvania State University June 2004 Printed on Recycled Content Paper Publication by permission of the United States Department of Defense. All rights reserved. Disclaimer This Document was prepared by the Partnership for Achieving Construction Excellence, under the direction of the Pentagon Renovation and Construction Program Office. It is for informational purposes only. Any opinions, findings, conclusions, or recommendations expressed herein do not necessarily reflect the views of the Partnership for Achieving Construction Excellence, The Pennsylvania State University, the Pentagon Renovation and Construction Program Office, Washington Headquarters Services, or the Defense Facilities Directorate. Neither the Partnership for Achieving Construction Excellence, The Pennsylvania State University, the Pentagon Renovation and Construction Program Office, Washington Headquarters Services or the Defense Facilities Directorate, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product or process disclosed, or represents that its use would not infringe on privately owned rights. This document is not a substitute for the advice of an attorney, accountant, engineer, architect, or other expert. If you require legal or other expert advice, you should seek the services of a competent attorney or other professional. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise, does not constitute or imply an endorsement, recommendation, or favoring by the Partnership for Achieving Construction Excellence, The Pennsylvania State University, the Pentagon Renovation and Construction Program Office, Washington Headquarters Services, or the Defense Facilities Directorate. Field Guide for Sustainable Construction Mission Statement: To provide education and guidance for construction field workers, supervisors and managers on construction methods and practices that amplify and ensure sustainable requirements and goals are achieved in projects. Introduction: Sustainable design and construction is gaining significant momentum in the construction industry. Designers and owners are learning that with smart design, buildings can save energy and have a decreased impact on the environment. Sophisticated sustainable projects address issues of the environment, energy use and people, in addition to traditional project goals of cost, quality and schedule. They do so paying acute attention to the business case of the facility. Most sustainable efforts are concentrated on early design. The focus is on decisions like selecting a site and building layout that minimizes the environmental burden of buildings; creating an efficient and integrated building envelope system; integrating HVAC and electrical systems to reduce energy use; and specifying reused, renewable or recycled materials. The focus in early design has made great strides in achieving and extending sustainable goals for buildings. The methods for construction are also significant to achieving the sustainable goals of a project. What may appear to be minor decisions to field workers, such as the selection of adhesives and sealants, may have long lasting negative effects on indoor air quality, maintainability or future adaptability of the space. Many of the day-to-day decisions made by construction workers and supervisors are important to achieving sustainable project goals and assuring a healthy built environment. With this in mind, the Field Guide for Sustainable Construction has been developed to assist and educate field workers, supervisors and managers in making decisions that help the project team meet sustainable project goals. The field guide is designed to fill a significant void in available information for sustainable construction methods. It systematically draws together and organizes information on many aspects of construction that can assure the sustainability of a facility. Simple methods and suggested practices are presented for the major phases of construction in the field guide. Readers Guide This field guide has been developed in a matrix format to enable multiple uses. The columns of the matrix organize the field guide information into chapters based on ten categories of sustainable construction. The rows of the matrix organize the field guide information into 15 phases of a project, starting with general conditions and ending with finishes. This structure allows the guidebook to be read by chapter (sustainability category) or by sections (construction phase). Project managers overseeing multiple trades are likely to use the field guide by chapters. Specific trades are likely to use the field guide by sections. Importantly, the matrix allows simple cross-referencing between the different interests to facilitate clear, accurate and timely communication. Each chapter is structured to begin with a summary and highlight key planning information. Case studies, sustainable construction facts, emerging technologies and practices from PENREN/C are also provided throughout. Field Guide for Sustainable Construction Guidebook Organization Chapter Description CHAPTER 1: PROCUREMENT – Specific procurement strategies to ensure sustainable construction requirements are addressed. CHAPTER 2: SITE/ENVIRONMENT - Methods to reduce the environmental impact of construction on the project site and surrounding environment are identified. CHAPTER 3: MATERIAL SELECTION - Identifies environmentally friendly building materials as well as harmful and toxic materials that should be avoided. CHAPTER 4: WASTE PREVENTION - Methods to reduce and eliminate waste on construction projects are identified. CHAPTER 5: RECYCLING - Identifies materials to recycle at each phase of construction and methods to support the onsite recycling effort. CHAPTER 6: ENERGY - Methods to ensure and improve the building’s energy performance, reduce energy consumed during construction, and identify opportunities to use renewable energy sources. CHAPTER 7: BUILDING AND MATERIAL REUSE - Identifies reusable materials and methods to facilitate the future reuse of a facility, systems, equipment, products and materials. CHAPTER 8: CONSTRUCTION TECHNOLOGIES - Identifies technologies which can be used during construction to improve efficiency and reduce waste (especially paper). CHAPTER 9: HEALTH AND SAFETY - Methods to improve the quality of life for construction workers are identified. CHAPTER 10: INDOOR ENVIRONMENTAL QUALITY - Methods to ensure indoor environmental quality measures during construction are managed and executed properly. GUIDEBOOK SECTIONS (within each chapter – in Enhanced Uniformat Divisions) Summary Page 0. Planning 1. General Conditions 2. Demolition and Abatement 3. Sitework 4. Foundations 5. Substructure 6. Superstructure 7. Exterior closure 8. 9. 10. 11. 12. 13. 14. 15. Roofing Interior Construction Conveying Systems Mechanical Electrical Information Technology Equipment Finishes Field Guide for Sustainable Construction Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Procurement Site/ Environment Material Selection Waste Prevention Recycling Energy Building and Material Reuse Construction Technologies Health and Safety Indoor Environmental Quality Sections 1 2 3 4 5 6 7 8 9 10 0 Planning 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 1 General Conditions 1.1 2.1 3.1 4.1 5.1 6.1 7.1 8.1 9.1 10.1 2 Demolition and Abatement 1.2 2.2 3.2 4.2 5.2 6.2 7.2 8.2 9.2 10.2 3 Sitework 1.3 2.3 3.3 4.3 5.3 6.3 7.3 8.3 9.3 10.3 4 Foundations 1.4 2.4 3.4 4.4 5.4 6.4 7.4 8.4 9.4 10.4 5 Substructure 1.5 2.5 3.5 4.5 5.5 6.5 7.5 8.5 9.5 10.5 6 Superstructure 1.6 2.6 3.6 4.6 5.6 6.6 7.6 8.6 9.6 10.6 7 Exterior Enclosure 1.7 2.7 3.7 4.7 5.7 6.7 7.7 8.7 9.7 10.7 8 Roofing 1.8 2.8 3.8 4.8 5.8 6.8 7.8 8.8 9.8 10.8 9 Interior Construction 1.9 2.9 3.9 4.9 5.9 6.9 7.9 8.9 9.9 10.9 10 Conveying Systems 1.10 2.10 3.10 4.10 5.10 6.10 7.10 8.10 9.10 10.10 11 Mechanical 1.11 2.11 3.11 4.11 5.11 6.11 7.11 8.11 9.11 10.11 12 Electrical 1.12 2.12 3.12 4.12 5.12 6.12 7.12 8.12 9.12 10.12 13 Information Technology (IT) 1.13 2.13 3.13 4.13 5.13 6.13 7.13 8.13 9.13 10.13 14 Equipment 1.14 2.14 3.14 4.14 5.14 6.14 7.14 8.14 9.14 10.14 15 Finishes 1.15 2.15 3.15 4.15 5.15 6.15 7.15 8.15 9.15 10.15 Summary page &KDSWHU3URFXUHPHQW *RDO3URYLGHJXLGHOLQHVIRUSURFXUHPHQWSUDFWLFHVDQG FRQWUDFWLQJVWUDWHJLHVIRUJHQHUDOFRQWUDFWRUVFRQVWUXFWLRQPDQDJHUV VXEFRQWUDFWRUVDQGYHQGRUV6XFKVWUDWHJLHVDQGJXLGHOLQHVDUHWREH LPSOHPHQWHGRQVXVWDLQDEOHFRQVWUXFWLRQSURMHFWVLQDQDWWHPSWWRUDLVH WKHDZDUHQHVVRIVXVWDLQDEOHLVVXHVDQGLQFUHDVHSHUIRUPDQFHRQWKHVH FRQVWUXFWLRQSURMHFWV %HQH¿WV x x x 5HGXFHGULVNZKHQFRQWUDFWLQJZLWKVXEFRQWUDFWRUVDQGYHQGRUV RQVXVWDLQDEOHSURMHFWV ,QFUHDVHGDZDUHQHVVRIVXVWDLQDEOHLVVXHVLQFRQVWUXFWLRQ GHFRQVWUXFWLRQDQGGHPROLWLRQSURMHFWV ,PSURYHGXQGHUVWDQGLQJRIWKHFRQWUDFWRU¶VUHVSRQVLELOLWLHVLQWKH FRQVWUXFWLRQRIVXVWDLQDEOHEXLOGLQJV $FWLRQVDQG0HWKRGV 6XFFHVVIXOVXEFRQWUDFWRUVHOHFWLRQVWUDWHJLHVIRUFRQVWUXFWLRQ PDQDJHUV x 8WLOL]HVXEFRQWUDFWRUVWKDWKDYHGHVLJQEXLOGFDSDELOLWLHV 'RLQJVRZLOOLQFUHDVHWKHDELOLW\WRLGHQWLI\VXVWDLQDEOH LPSURYHPHQWVWKURXJKYDOXHHQJLQHHULQJ5HI&K%XLOGLQJ DQG0DWHULDO5HXVHDQGZDVWHPDQDJHPHQWUHFRPPHQGDWLRQV 5HI&K:DVWH3UHYHQWLRQDQG&K5HF\FOLQJ x 8WLOL]HVXEFRQWUDFWRUVZLWK³LQKRXVH´IDEULFDWLRQFDSDELOLWLHV 'RLQJVRZLOOLQFUHDVHWKHDZDUHQHVVRIZDVWHUHGXFWLRQDQG SURYLGHPRUHFRQWURORYHUGHOLYHU\VFKHGXOHV x &RQWUDFWZLWKVXEFRQWUDFWRUVWKDWKDYHVXFFHVVIXOO\FRPSOHWHG ZRUNRQVXVWDLQDEOHSURMHFWVLQWKHSDVW7KLVH[SHULHQFHZLOO KHOSFUHDWHDQDSSURSULDWHVXVWDLQDEOHDWWLWXGHDPRQJVWDOO FRQWUDFWRUV$OLVWRIFRQWUDFWRUVZKRDUHPHPEHUVRIWKH86*%& FDQEHIRXQGDWKWWSZZZXVJEFRUJ$ERXW8VPHPEHUOLVWDVS 3URFXUHPHQW 7UDLQLQJRSSRUWXQLWLHVIRUFRQWUDFWRUVDQGVXEFRQWUDFWRUV x /(('7UDLQLQJ:RUNVKRSVDUHDYDLODEOHDFURVVWKHFRXQWU\ DQGWKURXJKRXWWKH\HDUKWWSZZZXVJEFRUJ(YHQWVHYHQWVB WUDLQLQJBFDOHQGDUDVS x $GYDQWDJH*UHHQKWWSZZZJUHHQDGYDQWDJHRUJRIIHUV FRQWUDFWRUDQGVXEFRQWUDFWRUJUHHQEXLOGLQJFHUWL¿FDWLRQV x &RQGXFWUHJXODULQKRXVHWUDLQLQJVHVVLRQVRU³WRROER[WDONV´ZLWK VXEFRQWUDFWRUV 3(15(1&3UDFWLFH 'HVLJQ%XLOG&RQWUDFWV 7KH3HQWDJRQ5HQRYDWLRQDQG&RQVWUXFWLRQ3URJUDPXVHVRQO\GHVLJQ EXLOGFRQWUDFWVZLWKSHUIRUPDQFHEDVHGIHHLQFHQWLYHVIRUWKHGHVLJQ EXLOGFRQWUDFWRU7KLVDSSURDFKHQFRXUDJHVLQQRYDWLYHVROXWLRQVWKDW LPSURYHVXVWDLQDEOHFRQVWUXFWLRQSUDFWLFHV$VRI-XQHRQHSURMHFW RQWKH3HQWDJRQUHVHUYDWLRQKDVEHHQFHUWL¿HGXQGHUWKH86*UHHQ %XLOGLQJ&RXQFLO¶V/HDGHUVKLSLQ(QHUJ\DQG(QYLURQPHQWDO'HVLJQ /(('UDWLQJV\VWHPDQGIRXURWKHUVDUHLQWKHSURFHVVRISXUVXLQJ FHUWL¿FDWLRQ,QDGGLWLRQDOPDQ\RIWKHQHZFRQWUDFWVDUHQRZLQFOXGLQJ /(('FHUWL¿FDWLRQDVDFRQWUDFWUHTXLUHPHQWKWWSUHQRYDWLRQSHQWDJRQPLO LQGH[KWP 5HIHUHQFHV )HGHUDO*XLGHWR*UHHQ&RQVWUXFWLRQ'UDIW(QYLURQPHQWDO 3URWHFWLRQ$JHQF\KWWSZZZZEGJRUJGHVLJQJUHHQVSHFSKS 5LOH\'.3H[WRQHWDO'H¿QLQJWKH5ROHRI&RQWUDFWRUV RQ*UHHQ%XLOGLQJ3URMHFWV&RQVWUXFWLRQ5HVHDUFK&RQJUHVV +RQROXOX+DZDLL :LOVRQ$DQG01DGDY*UHHQVSHF'LUHFWRU\3URGXFW'LUHFWRU\ ZLWK*XLGHOLQH6SHFL¿FDWLRQV%UDWWOHERUR97%XLOGLQJ*UHHQ,QF 3URFXUHPHQW &KDSWHU3URFXUHPHQW *HQHUDO&RQGLWLRQV *RDO3URYLGHJXLGHOLQHVIRUFRQWUDFWLQJVWUDWHJLHVRQVXVWDLQDEOH SURMHFWVIRUZRUNLQJHQHUDOFRQGLWLRQV &RQWUDFWLQJ6WUDWHJLHV 5HTXLUHVXEPLVVLRQRIDGHWDLOHGVDIHW\SODQIURP$// VXEFRQWUDFWRUVLPSOHPHQWLQJNH\LWHPVDGGUHVVHGLQ&KDSWHU x $OORZRQO\QRQWR[LFFOHDQLQJDJHQWVIRUEXLOGLQJ¿QDOFOHDQLQJ DFWLYLWLHV x 5HTXLUHGHWDLOHGVLWHUHF\FOLQJSODQVLQFOXGLQJLQFHQWLYHV SHQDOWLHVWRHQVXUHH[HFXWLRQ x $OORZQRVPRNLQJRQVLWHGXULQJFRQVWUXFWLRQ x 5HTXLUHLQWHULPVXEPLVVLRQVRIHOHFWURQLFDVEXLOWGUDZLQJVRQ DWLPHVFKHGXOHGEDVLVUDWKHUWKDQDWWKHHQGRIWKHSURMHFW 7LPLQJRIXSGDWHVVKRXOGEHEDVHGRQWKHSURMHFWVL]H 0HHWLQJWUDLQLQJVWUDWHJLHV x 5HTXLUH³NLFNRII´VXVWDLQDEOHFRQVWUXFWLRQHGXFDWLRQIRUDOORQ VLWHZRUNIRUFH x 5HTXLUHDWWHQGDQFHDWPRQWKO\VXVWDLQDELOLW\PHHWLQJVE\DOOVLWH SHUVRQQHO x 5HTXLUHSHULRGLFHGXFDWLRQWUDLQLQJVHVVLRQVVXVWDLQDEOH³WRRO ER[WDONV´ x 5HYLHZVXVWDLQDEOHEXLOGLQJUHTXLUHPHQWVLQVSHFL¿FDWLRQVZLWK HDFKVXEFRQWUDFWRUDW³NLFNRII´PHHWLQJSULRUWRFRPPHQFHPHQW RIZRUN ,QFHQWLYH6WUDWHJLHV x ,PSOHPHQWLQFHQWLYHVIRUVLWHVWDIIIRULPSOHPHQWDWLRQRI VXVWDLQDEOHSUDFWLFHV x ,QFOXGHLQFHQWLYHVIRUH[FHHGLQJVXVWDLQDELOLW\JRDOV 6WDI¿QJSHUVRQQHOVWUDWHJLHV x x x x /(('6XVWDLQDEOH³&KDPSLRQ´UHTXLUHPHQWIRUHDFKWHDP PHPEHULHFRQWUDFWRUVXEFRQWUDFWRUGHVLJQHUHWF 5HTXLUHVXVWDLQDEOHH[SHULHQFHIURPFRQWUDFWRUVVXEFRQWUDFWRUV 3UHTXDOLI\VXEFRQWUDFWRUVZLWKH[SHULHQFHRQ/(('SURMHFWV 3URFXUHPHQW &DVH6WXG\ 6HH6HFWLRQ 5HIHUHQFHV *UHHQ%XLOGLQJ3URMHFW3ODQQLQJDQG&RVW(VWLPDWLQJ.LQJVWRQ 0$560HDQV 3URFXUHPHQW &KDSWHU3URFXUHPHQW 'HPROLWLRQDQG$EDWHPHQW *RDO3URYLGHJXLGHOLQHVIRUFRQWUDFWLQJVWUDWHJLHVRQVXVWDLQDEOH SURMHFWVIRUGHPROLWLRQDQGDEDWHPHQWZRUN &RQWUDFWLQJ6WUDWHJLHV x x x x x x 5HTXLUHVXVWDLQDEOHH[SHULHQFHSHUIRUPDQFHUHTXLUHPHQWVIRU DEDWHPHQWDQGGHPROLWLRQFRQWUDFWRUV 5HTXLUHDGHWDLOHGSODQIURPWKHGHPROLWLRQDEDWHPHQW FRQWUDFWRURXWOLQLQJWKHVHSDUDWLRQRIZDVWHDQGUHF\FODEOH FRQWDLQHUVGXPSVWHUV )RUGHPROLWLRQSURMHFWVRQZKLFKQRVHOISHUIRUPLQJODERULV DYDLODEOHVXEFRQWUDFWEXLOGLQJFOHDQXSWKURXJKWKHGHPROLWLRQ FRQWUDFWRU5HTXLUHHDFKWUDGH¶VZDVWHEHVHSDUDWHGDQG SODFHZDVWHDQGUHF\FOHGPDWHULDOLQ³PDUNHGEXJJLHV´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¿OOPDWHULDO 5HIHUHQFHV .HUOLQ.6XVWDLQDEOH6ORSHV7KH(QYLURQPHQWDO0DJD]LQH;,, KWWSZZZHPDJD]LQHFRPQRYHPEHUGHFHPEHUBJOBWUDYHO KWPO /(('5HIHUHQFH*XLGH)RU1HZ&RQVWUXFWLRQDQG0DMRU 5HQRYDWLRQV/(('1&9HUVLRQ:DVKLQJWRQ'&86*UHHQ %XLOGLQJ&RXQFLO 3URFXUHPHQW &KDSWHU3URFXUHPHQW 6LWH:RUN *RDO3URYLGHJXLGHOLQHVIRUFRQWUDFWLQJVWUDWHJLHVRQVXVWDLQDEOH SURMHFWVIRUVLWHZRUNRSHUDWLRQV &RQWUDFWLQJ6WUDWHJLHV x x x x x x x x x 5HTXLUHGHWDLOHGVLWHDFFHVVSODQVDWDOOPLOHVWRQHVWDJHVRI ZRUNPLQLPL]HLPSHUYLRXVVLWHHIIHFWVGXULQJFRQVWUXFWLRQ 5HTXLUHGHWDLOHGVRLOHURVLRQVHGLPHQWDWLRQFRQWURO PHDVXUHVVWUDWHJLHVUHTXLUHPHQWVIURPDVLQJOHVRXUFH FRQWUDFWRU 8WLOL]HORFDOPDWHULDOVIRUEDFN¿OOLQJRSHUDWLRQV7KHFORVHUWKH EHWWHU/(('GH¿QHV³ORFDO´DVZLWKLQPLOHUDGLXV 5HTXLUHUHF\FOHGXVHRIRQVLWHVSRLOVIRUH[LVWLQJSURMHFW EDFN¿OORUIRUDORFDOSURMHFWLIVSRLOVQHHGWREHH[SRUWHG 8WLOL]HRQVLWHVWRUDJHRIVSRLOVIRUEDFN¿OOLQJWRUHGXFHIXHO FRQVXPSWLRQ 5HTXLUHFDSWXULQJDQGUHXVLQJVLWHZDWHUIRUGXVWFRQWURO GXULQJFRQVWUXFWLRQRSHUDWLRQVDVRSSRVHGWRLPSRUWLQJZDWHU IURPRIIVLWHIRUWKLVVSHFL¿FXVH 5HTXLUHDSURWHFWLRQSODQIURPDVLQJOHVRXUFHFRQWUDFWRUIRU SURWHFWLRQRIH[LVWLQJYHJHWDWLRQGXULQJDOOFRQVWUXFWLRQDFWLYLWLHV 7KLVZLOOUHGXFHWKHFKDQFHVRIGDPDJHGXHWRXQFRRUGLQDWHGRU LQFRPSOHWHSURWHFWLRQ &OHDUO\LGHQWLI\UHIXHOLQJVWDWLRQVIRUH[FDYDWLRQHTXLSPHQW ODQGVFDSLQJHTXLSPHQWHDUWKPRYHUVDQGPDWHULDOOLIWVWRSUHYHQW JURXQGZDWHUFRQWDPLQDWLRQ 5HTXLUHJULQGLQJFKLSSLQJDQGVKUHGGLQJRIEXONVLWHFOHDULQJ PDWHULDOVIRUPXOFKXVHZKHQDSSOLFDEOH 3URFXUHPHQW &DVH6WXG\ 'RQDOG%UHQ6FKRRORI(QYLURQPHQWDO6FLHQFHDQG0DQDJHPHQW 7KH'RQDOG%UHQ6FKRRORI(QYLURQPHQWDO6FLHQFHDQG0DQDJHPHQW3URMHFWD/(('*ROG 3LORW3URMHFWXWLOL]HGVLOWIHQFLQJVWUDZEDOHFDWFKEDVLQVDQGVFKHGXOHGJUDGLQJDFWLYLWLHV LQDFFRUGDQFHZLWKZHDWKHUDOODVDSDUWRIWKHSURMHFW¶VHURVLRQFRQWUROSODQ 5HIHUHQFHV ³'RQDOG%UHQ6FKRRORI(QYLURQPHQWDO6FLHQFHDQG 0DQDJHPHQW´KWWSZZZHVPXFVEHGX /(('5HIHUHQFH*XLGH)RU1HZ&RQVWUXFWLRQDQG0DMRU 5HQRYDWLRQV/(('1&9HUVLRQ:DVKLQJWRQ'&86*UHHQ %XLOGLQJ&RXQFLO 'HVLJQIRU&RQVWUXFWLRQ6DIHW\7RROER[$XVWLQ7;&RQVWUXFWLRQ ,QGXVWU\,QVWLWXWH&,, 9OHFN5($GYDQFHG&RQVWUXFWLRQDQG'HPROLWLRQ:DVWH 0DQDJHPHQWIRU)ORULGD%XLOGHUV8QLYHUVLW\RI)ORULGD 3URFXUHPHQW &KDSWHU3URFXUHPHQW )RXQGDWLRQV *RDO3URYLGHJXLGHOLQHVIRUFRQWUDFWLQJVWUDWHJLHVRQVXVWDLQDEOH SURMHFWVIRUZRUNRQIRXQGDWLRQV &RQWUDFWLQJ6WUDWHJLHV x x x x x x x x x 5HTXLUH³FOHDQIRXQGDWLRQV´ZLWKWKHLQWHQWLRQRIUHGXFLQJ ZDVWHRIODERUDQGPDWHULDOUHVRXUFHV 5HTXLUHUHF\FOLQJRIRQVLWHVSRLOVIURPEXONH[FDYDWLRQIRU¿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¿OOWKDWFRQVLVWHGRILQGXVWULDOZDVWHSURGXFWVVXFKDVÀ\DVK OLPHDQGÀXHJDVGHVXOSKXUL]DWLRQPDWHULDOGXULQJWKHIRXQGDWLRQSKDVHVRIFRQVWUXFWLRQ 5HIHUHQFHV /(('5HIHUHQFH*XLGH)RU1HZ&RQVWUXFWLRQDQG0DMRU 5HQRYDWLRQV/(('1&9HUVLRQ:DVKLQJWRQ'&86*UHHQ %XLOGLQJ&RXQFLO 'HVLJQIRU&RQVWUXFWLRQ6DIHW\7RROER[$XVWLQ7;&RQVWUXFWLRQ ,QGXVWU\,QVWLWXWH&,, 3URFXUHPHQW &KDSWHU3URFXUHPHQW 6XEVWUXFWXUH *RDO3URYLGHJXLGHOLQHVIRUFRQWUDFWLQJVWUDWHJLHVRQVXVWDLQDEOH SURMHFWVIRUVXEVWUXFWXUHZRUN &RQWUDFWLQJ6WUDWHJLHV x x x x x x x x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¿FH%XLOGLQJ 7KH3HQQV\OYDQLD'(3&DPEULD2I¿FH%XLOGLQJXWLOL]HGLQVXODWHG FRQFUHWHIRUPV,&)GXULQJWKHLQVWDOODWLRQRIWKHEXLOGLQJ¶VIRRWLQJVDQG UHWDLQLQJZDOOV KWWSKRPHDWWQHWa6:',67'2:7<LPJJLI 5HIHUHQFHV 'HVLJQIRU&RQVWUXFWLRQ6DIHW\7RROER[$XVWLQ7;&RQVWUXFWLRQ ,QGXVWU\,QVWLWXWH&,, 3URFXUHPHQW &KDSWHU3URFXUHPHQW 6XSHUVWUXFWXUH *RDO3URYLGHJXLGHOLQHVIRUFRQWUDFWLQJVWUDWHJLHVRQVXVWDLQDEOH SURMHFWVIRUVXSHUVWUXFWXUHZRUN &RQWUDFWLQJ6WUDWHJLHV x x x x x x x (VWDEOLVKDQGUHTXLUHUHF\FOHGFRQWHQWWKUHVKROGVIRU UHDGLO\DYDLODEOHUHF\FOHGPDWHULDOVVXFKDVVWHHOUHEDUÀ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x x x x x x x x x 8VHDSULPHFRQWUDFWRURUGHVLJQEXLOGFRQWUDFWIRUWKHHQWLUH EXLOGLQJIDoDGHWRHQVXUHDFFRXQWDELOLW\IRUWKHSHUIRUPDQFHRI WKHIDoDGHDVDV\VWHP 5HTXLUHKLJKUHF\FOHGFRQWHQWLQUHDGLO\DYDLODEOHUHF\FOHG PDWHULDOVVXFKDVJODVV 6HTXHQFHH[SHGLWHEXLOGLQJHQYHORSHHQFORVXUHWRPLQLPL]H PRLVWXUHH[SRVXUHWRLQWHULRUPDWHULDOV¿QLVKHVUHGXFLQJ SRWHQWLDOIRUPROG 8WLOL]H³FRPPXQDOVFDIIROGLQJ´WRUHGXFHODERUZDVWHVLWH GLVWXUEDQFHDQGDOORZIRUPRVWHIIHFWLYHWHPSRUDU\EXLOGLQJ HQFORVXUHLIUHTXLUHG 5HTXLUHUDQGRP¿HOGWHVWLQJRIEXLOGLQJHQFORVXUHDVZRUN LVLQVWDOOHGLQDQDWWHPSWWRLGHQWLI\DQ\GHVLJQRUFRQVWUXFWLRQ HUURUVSULRUWRFRPSOHWLRQRIWKHHQWLUHV\VWHP7KLVZLOOSUHYHQW PRLVWXUHLQ¿OWUDWLRQGXULQJFRQVWUXFWLRQDQGDOORZIRUWLPHO\ GHVLJQLQVWDOODWLRQPRGL¿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¿FLHQWEXLOGLQJIDoDGH /HVVRQVOHDUQHGGXULQJWKLVSURFHVVZHUHWKHQLQFRUSRUDWHGLQWRWKHELG GRFXPHQWV 3URFXUHPHQW &KDSWHU3URFXUHPHQW 5RR¿QJ *RDO3URYLGHJXLGHOLQHVIRUFRQWUDFWLQJVWUDWHJLHVRQVXVWDLQDEOH SURMHFWVIRUURR¿QJZRUN &RQWUDFWLQJ6WUDWHJLHV x x x x x 5HTXLUHNHWWOHSODFHPHQWWKDWLVDFFHSWDEOHWRVLWHDQGDGMDFHQW VLWHVIRUKRWWDUURRIV 5HTXLUHVHTXHQFLQJWREHFRRUGLQDWHGZLWKLQWHULRU¿QLVKHVDQG EXLOGLQJHQFORVXUHWRSUHYHQWPRLVWXUHLQ¿OWUDWLRQDQGFKDQFHV IRUPROG &OHDUO\RXWOLQHUHF\FOLQJDQGZDVWHPDQDJHPHQWUHTXLUHPHQWV IRUWKHURR¿QJFRQWUDFWRU5RR¿QJRSHUDWLRQVPDQ\WLPHVFUHDWH DODUJHDPRXQWRIZDVWHUHODWLYHWRWKHUHVWRIWKHFRQVWUXFWLRQ DFWLYLWLHV 5HTXLUHGHWDLOHGVLWHDFFHVVSODQVIRUDOOPLOHVWRQHVWDJHVRI ZRUNWKDWPLQLPL]HVLPSHUYLRXVVLWHHIIHFWVGXULQJFRQVWUXFWLRQ 5HWXUQXQXVHGPDWHULDOVWRYHQGRUV2ZQHUDQGFRQWUDFWRU VKRXOGDJUHHXSRQDSODQIRUUHWXUQLQJXQXVHGRUH[FHVV PDWHULDOVWKDWZLOOQRWEHQHHGHGIRUDWWLFVWRFN&RQVLGHUXVLQJ DVSOLWVDYLQJVFODXVH,QPRVWFDVHVXQXVHGPDWHULDOVFDQEH VROGEDFNWRWKHVXSSOLHUDWDUHVWRFNLQJIHH 3URFXUHPHQW &DVH6WXG\ 7KH)RUG0RWRU&RPSDQ\¶V5RXJH5LYHU3ODQW KWWSZZZIUHHSFRPPRQH\EXVLQHVVURRIBKWP )RUG0RWRU&RPSDQ\KDVFUHDWHGRQRIWKHZRUOG¶VODUJHVWJUHHQURRIV 7KLVDFUHOLYLQJURRIFRYHUVWKHFHQWHUVHFWLRQRIWKHQHZWUXFN SODQW¶V¿QDODVVHPEO\7KHVHGXPSODQWVDEVRUEDQG¿OWHUZDWHUIURP UDLQDQGVQRZDEVRUEFDUERQGLR[LGHJLYHRIIR[\JHQDQGNHHSWKH IDFWRU\FRROHULQWKHVXPPHUDQGZDUPHULQWKHZLQWHU 5HIHUHQFHV /(('5HIHUHQFH*XLGH)RU1HZ&RQVWUXFWLRQDQG0DMRU 5HQRYDWLRQV/(('1&9HUVLRQ:DVKLQJWRQ'&86*UHHQ %XLOGLQJ&RXQFLO 3URFXUHPHQW &KDSWHU3URFXUHPHQW ,QWHULRU&RQVWUXFWLRQ *RDO3URYLGHJXLGHOLQHVIRUFRQWUDFWLQJVWUDWHJLHVRQVXVWDLQDEOH SURMHFWVIRULQWHULRUFRQVWUXFWLRQZRUN &RQWUDFWLQJ6WUDWHJLHV x x x x x x x x &OHDUO\LGHQWLI\UHF\FOLQJUHTXLUHPHQWVIRUFRQVWUXFWLRQZDVWH DQGWKHUROHRIWKHLQWHULRUVFRQWUDFWRUDVLWUHODWHVWRRWKHUWUDGHV ZKHQDSSOLFDEOH )RUQHZFRQVWUXFWLRQSURMHFWVRQZKLFKQRVHOISHUIRUPLQJ ODERULVDYDLODEOHVXEFRQWUDFWEXLOGLQJFOHDQXSWKURXJKWKH LQWHULRUVFRQWUDFWRU5HTXLUHWKHVHSDUDWLRQRIUHF\FOHGPDWHULDO IURPZDVWHE\HDFKFRQWUDFWRU3ODFHWKHZDVWHDQGUHF\FOHG PDWHULDOLQVHSDUDWH³PDUNHGEXJJLHV´IRUWKHLQWHULRUVFRQWUDFWRU WRPRYHWRWKHGXPSVWHUDQGUHF\FOLQJELQUHVSHFWLYHO\ 5HTXLUHYHQWLODWLRQSODQIRUDLUFRQWDPLQDWLQJRSHUDWLRQVVXFK DVVDQGLQJVZHHSLQJHWF 5HTXLUHDGHWDLOHGSODQIRUUHQRYDWLRQSKDVHGZRUN LGHQWLI\LQJWKHQHHGHGWHPSRUDU\SDUWLWLRQVWRVHSDUDWH FRQVWUXFWLRQDFWLYLWLHVIURPDGMDFHQWEXLOGLQJDFWLYLWLHV 5HTXLUHGHWDLOHGVHTXHQFLQJSODQFRRUGLQDWLQJWKHGU\ZDOO LQVWDOODWLRQZLWKWKHEXLOGLQJHQFORVXUHWRHOLPLQDWHGU\ZDOO LQVWDOODWLRQSULRUWRWKHHOLPLQDWLRQRIPRLVWXUHLQ¿OWUDWLRQIURPWKH H[WHULRU 5HTXLUHGHOLYHU\SODQWKURXJKVLWHDQGLQWREXLOGLQJPLQLPL]LQJ FUHDWLRQRILPSHUYLRXVVXUIDFHVGXULQJFRQVWUXFWLRQ 8WLOL]HEX\EDFNRSSRUWXQLWLHVIRUOHDVLQJRIPDWHULDOVVXFK DVFDUSHWZKHQDYDLODEOH 5HWXUQXQXVHGPDWHULDOVWRYHQGRUV2ZQHUDQGFRQWUDFWRU VKRXOGDJUHHXSRQDSODQIRUUHWXUQLQJXQXVHGRUH[FHVV PDWHULDOVWKDWZLOOQRWEHQHHGHGIRUDWWLFVWRFN&RQVLGHUXVLQJ DVSOLWVDYLQJVFODXVH,QPRVWFDVHVXQXVHGPDWHULDOVFDQEH VROGEDFNWRWKHVXSSOLHUDWDUHVWRFNLQJIHH 3URFXUHPHQW &DVH6WXG\ ,673URMHFW±%XLOGLQJ&OHDQ8S ,67%XLOGLQJ3HQQ6WDWH8QLYHUVLW\8QLYHUVLW\3DUN3$ 3KRWRVE\*HRUJH*UHLFR3HQQ6WDWH 7KH,QIRUPDWLRQ6FLHQFHVDQG7HFKQRORJ\%XLOGLQJRQWKHFDPSXVRI 7KH3HQQV\OYDQLD6WDWH8QLYHUVLW\LPSOHPHQWHGDZDVWHPDQDJHPHQW SODQWKDWUHTXLUHGDOOFRQWUDFWRUVWRKDXOPDWHULDOVWR³ORFDOEXJJLHV´,W ZDVWKHQWKHLQWHULRUVFRQWUDFWRU¶VUHVSRQVLELOLW\WRWUDQVSRUWWKHPDWHULDOV LQWKH³ORFDOEXJJLHV´WRFHQWUDOFRQVWUXFWLRQZDVWHPDQDJHPHQW GXPSVWHUV 3URFXUHPHQW &KDSWHU3URFXUHPHQW &RQYH\LQJ6\VWHPV *RDO3URYLGHJXLGHOLQHVIRUFRQWUDFWLQJVWUDWHJLHVRQVXVWDLQDEOH SURMHFWVIRUFRQYH\LQJV\VWHPVZRUN &RQWUDFWLQJ6WUDWHJLHV x x x x x x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¿OWHUVZDUUDQW\LVVXHVRZQHU UHTXLUHPHQWVHWF x ,QUDLVHGÀRRUDSSOLFDWLRQVUHTXLUHGHWDLOHGLQVWDOODWLRQDQG EDODQFLQJVHTXHQFLQJ x 5HTXLUHGHWDLOHGVLWHDFFHVVSODQVIRUDOOPLOHVWRQHVWDJHVRI ZRUNWKDWPLQLPL]HLPSHUYLRXVVLWHHIIHFWVGXULQJFRQVWUXFWLRQ x 5HWXUQXQXVHGPDWHULDOVWRYHQGRUV2ZQHUDQGFRQWUDFWRU VKRXOGDJUHHXSRQDSODQIRUUHWXUQLQJXQXVHGRUH[FHVV PDWHULDOVWKDWZLOOQRWEHQHHGHGIRUDWWLFVWRFN&RQVLGHUXVLQJ DVSOLWVDYLQJVFODXVH,QPRVWFDVHVXQXVHGPDWHULDOVFDQEH VROGEDFNWRWKHVXSSOLHUDWDUHVWRFNLQJIHH x 5HTXLUHDZULWWHQ,$4SODQGXULQJFRQVWUXFWLRQ x 5HTXLUHFRPSUHKHQVLYHSODQQLQJWKDWLPSOHPHQWVVXVWDLQDEOH WHPSRUDU\XWLOLWLHVVXFKDVXWLOL]DWLRQRIORZZDWHUXVHWRLOHWV 'XFWZRUNSURWHFWLRQGXULQJFRQVWUXFWLRQ x 5HTXLUHVHTXHQFLQJSODQWREHFRRUGLQDWHGZLWKWKHVFKHGXOH IRUEXLOGLQJHQFORVXUHLQRUGHUWRPLQLPL]HH[SRVHGGXFWZRUNDQG GXFWZRUNOLQHUWRKRWKXPLGFRQGLWLRQV x 5HTXLUHDVHDOHGGXFWOLQHULQWKHVKRSSULRUWRVLWHGHOLYHU\WR PLQLPL]HWKHFKDQFHVRIPROGGXULQJRQVLWHVWRUDJH x 5HTXLUH³MXVWLQWLPH´GHOLYHULHVWRPLQLPL]HWKHDPRXQWRIRQ VLWHGXFWZRUNVWRUDJHLQXQFRQWUROOHGHQYLURQPHQWV x 3URFXUHPHQW &DVH6WXG\ 7KH3$'(3&DPEULD2I¿FH%XLOGLQJ KWWSGUV\DKRRFRP6 . FDPEULDGHSEXLOGLQJY O ,9,KWWS ZZZOUNLPEDOOFRP$UFKLWHFWXUHDQG(QJLQHHULQJLPDJHV'HSMSJ 7KH3$'(3&DPEULD2I¿FH%XLOGLQJ3URMHFWGHVLJQLQFRUSRUDWHGEHORZ ÀRRUDLUGLVWULEXWLRQV\VWHPV(DFKGLIIXVHUKDVLQGHSHQGHQWFRQWUROV ZKLFKJLYHVLQGLYLGXDOVWKHFKDQFHWRFRQWUROWKHHQYLURQPHQWLQWKHLU ZRUNVWDWLRQ7KLVLQFUHDVHGFRQWURODQGWKHQDWXUDOYHQWLODWLRQÀRZ SURYLGHDWUXO\HIIHFWLYHYHQWLODWLRQV\VWHP 5HIHUHQFHV ³&DPEULD&RXQW\'LVWULFW2I¿FH´/5REHUW.LPEDOO$VVRFLDWHV KWWSZZZOUNLPEDOOFRP$UFKLWHFWXUHDQG(QJLQHHULQJDHB H[SHULHQFHBJUHHQBSDGHSKWP 3URFXUHPHQW &KDSWHU3URFXUHPHQW (OHFWULFDO *RDO3URYLGHJXLGHOLQHVIRUFRQWUDFWLQJVWUDWHJLHVRQVXVWDLQDEOH SURMHFWVIRUHOHFWULFDOZRUN &RQWUDFWLQJ6WUDWHJLHV 5HTXLUHHDUO\LQVWDOODWLRQRISHUPDQHQWHOHFWULFDOV\VWHP WRPLQLPL]HWKHQXPEHURIWHPSRUDU\FLUFXLWVQHHGHGWRKDQGOH FRQVWUXFWLRQDFWLYLWLHV x 5HTXLUHGHWDLOHGVLWHDFFHVVSODQVIRUDOOPLOHVWRQHVWDJHVRI ZRUNWKDWPLQLPL]HLPSHUYLRXVVLWHHIIHFWVGXULQJFRQVWUXFWLRQ x 5HWXUQXQXVHGPDWHULDOVWRYHQGRUV2ZQHUDQGFRQWUDFWRU VKRXOGDJUHHXSRQDSODQIRUUHWXUQLQJXQXVHGRUH[FHVV PDWHULDOVWKDWZLOOQRWEHQHHGHGIRUDWWLFVWRFN&RQVLGHUXVLQJ DVSOLWVDYLQJVFODXVH,QPRVWFDVHVXQXVHGPDWHULDOVFDQEH VROGEDFNWRWKHVXSSOLHUDWDUHVWRFNLQJIHH x 3URYLGHLQFHQWLYHVIRUUHGXFHG39&XVHLQVLWHFRQGXLW DSSOLFDWLRQV 7HPSRUDU\OLJKWLQJDQGSRZHU x 5HTXLUHWHPSRUDU\SRZHUSODQWRPLQLPL]HZDVWHGXULQJ FRQVWUXFWLRQ x x x x 5HTXLUHHQHUJ\HI¿FLHQWODPSVIRUWHPSRUDU\OLJKWLQJDQG XWLOL]HÀXRUHVFHQWODPSLQJZKHUHSRVVLEOH 5HTXLUHWHPSRUDU\HPHUJHQF\OLJKWLQJVRWKDWVWDQGDUG OLJKWLQJFDQEHWXUQHGRIIGXULQJQRQZRUNLQJKRXUVWRFRQVHUYH HQHUJ\ 5HTXLUHSODQQLQJWKDWLPSOHPHQWVVXVWDLQDEOHWHPSRUDU\XWLOLWLHV VXFKDVORZHQHUJ\FRQVXPSWLRQWHPSRUDU\OLJKWLQJ 3URFXUHPHQW &DVH6WXG\ 3KLOOLS0HUULOO(QYLURQPHQWDO&HQWHU+HDGTXDUWHUV 7KH3KLOOLS0HUULOO(QYLURQPHQWDO&HQWHU+HDGTXDUWHUVXWLOL]HV SKRWRYROWDLFVXQVKDGHVDQGFU\VWDOOLQHSKRWRYROWDLFVN\OLJKWVWRJHQHUDWH HQHUJ\XVHGWRSRZHUOLJKWLQJDQGRI¿FHHTXLSPHQWLQWKHEXLOGLQJ 5HIHUHQFHV /(('5HIHUHQFH*XLGHIRU1HZ&RQVWUXFWLRQDQG0DMRU 5HQRYDWLRQV/(('1&9HUVLRQ:DVKLQJWRQ'&86*UHHQ %XLOGLQJ&RXQFLO 'HVLJQIRU&RQVWUXFWLRQ6DIHW\7RROER[$XVWLQ7;&RQVWUXFWLRQ ,QGXVWU\,QVWLWXWH&,, *UHHQ%XLOGLQJ3URMHFW3ODQQLQJDQG&RVW(VWLPDWLQJ.LQJVWRQ 0$560HDQV ³2XU7RXURIWKH3KLOOLS0HUULO&HQWHU´-RKQV+RSNLQV8QLYHUVLW\ KWWSZZZMKXHGXaUHF\FOHJUHHQSKLOLSPHUULOSKLOOLSBPHUULOBFHQWHU KWP 3URFXUHPHQW &KDSWHU3URFXUHPHQW ,QIRUPDWLRQ7HFKQRORJ\ *RDO3URYLGHJXLGHOLQHVIRUFRQWUDFWLQJVWUDWHJLHVRQVXVWDLQDEOH SURMHFWVIRULQIRUPDWLRQWHFKQRORJ\ZRUN &RQWUDFWLQJ6WUDWHJLHV x x x x 8WLOL]HYLUWXDOPHHWLQJVWHOHFRQIHUHQFHVFRQIHUHQFHFDOOVWR UHGXFHZDVWHSURGXFHGE\WUDYHOWLPHDQGIXHOFRQVXPSWLRQ 5HTXLUHHOHFWURQLFVKRSGUDZLQJVIURPDOOFRQWUDFWRUVDQG UHTXHVWHOHFWURQLFUHYLHZVE\WKHGHVLJQWHDPWRPLQLPL]HSDSHU ZDVWH ,PSOHPHQWDQHOHFWURQLFSURMHFWPDQDJHPHQWV\VWHPIRU WKHRZQHUFRQVWUXFWLRQPDQDJHUDUFKLWHFWHQJLQHHUVDQG FRQVXOWDQWVWKDWDOORZVIRUSDSHUOHVV5),¶VVXEPLWWDOWUDFNLQJ EXGJHWWUDFNLQJSURMHFWGLUHFWRULHVHWF &OHDUO\LGHQWLI\WKHQHHGDQGXVHRIEXLOGLQJVDPSOHVXEPLWWDOV DQGPLQLPL]HWKHQXPEHURIVDPSOHVUHTXLUHGWREHVXEPLWWHG IRUDSSURYDOWRUHGXFHZDVWH 3URFXUHPHQW &KDSWHU3URFXUHPHQW (TXLSPHQW *RDO3URYLGHJXLGHOLQHVIRUFRQWUDFWLQJVWUDWHJLHVRQVXVWDLQDEOH SURMHFWVIRUHTXLSPHQWLQVWDOODWLRQ &RQWUDFWLQJ6WUDWHJLHV x x x x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¿QLVKHVZRUN &RQWUDFWLQJ6WUDWHJLHV x x x x x x 5HTXLUH,$4SODQIRULPSOHPHQWDWLRQGXULQJDLUFRQWDPLQDWLQJ ¿QLVKLQJDFWLYLWLHVVXFKDVSDLQWLQJ¿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¿WV x 3UHVHUYLQJWKHQDWXUDOHQYLURQPHQWRIWKHVLWHLVLPSRUWDQWWR FRQVWUXFWLQJ³KHDOWK\´EXLOGLQJV $FWLRQVDQG0HWKRGV x &RPSO\ZLWKDOOORFDODQG(3$HQYLURQPHQWUHJXODWLRQVKWWS ZZZHSDJRYHSDKRPHUXOHVKWPO 6RLO /LPLWVWDJLQJDUHDVZKHQSRVVLEOH 3UHVHUYHSHUYLRXVVXUIDFHVE\OLPLWLQJWUDI¿FRIYHKLFOHV HTXLSPHQWPDWHULDOVDQGZRUNHUVWRGHVLJQDWHGDUHDV x 3URWHFWWRSVRLOGXULQJWKHFRQVWUXFWLRQSURFHVVH[PRXQGDQG VHHG x 3UHYHQWHURVLRQE\SUHGLFWLQJFKDQJHVLQWKHVLWH¶VSHUYLRXV VXUIDFHVWKURXJKRXWFRQVWUXFWLRQ x 'HYHORSDQGXVHDQHURVLRQDQGVHGLPHQWSROOXWLRQFRQWURO SURJUDPPDQXDO :DWHUTXDOLW\ x (OLPLQDWHDQ\DQGDOOSRVVLELOLWLHVRIFRQWDPLQDWLRQWRVLWH V QDWXUDOHVWXDULHVUXQRIISROOXWLRQVSLOODJHHWF :DWHUÀRZFRQWURO x 7KLQNDERXWWKHLPSDFWRISURFHVVHVRQVLWHGUDLQDJHDQGUXQRII WRSUHYHQWHURVLRQDQDO\]HÀRZYROXPHIUHTXHQF\GXUDWLRQ DQGUXQRIIUDWHZLWKUHVSHFWWRSUHGHYHORSPHQWFRQGLWLRQV x 8VHVWRUPZDWHUDVVHVVPHQWVSULRUWRFRQVWUXFWLRQPLOHVWRQHVDV ZHOODVZKHQDQ\VLJQL¿FDQWFKDQJHVDUHPDGHWRWKHVLWH x x 6LWH(QYLURQPHQW :DVWHUHF\FOLQJDQGPDWHULDOKDQGOLQJ x 8VHSURSHUGLVSRVDOWHFKQLTXHVIRUDOOODQGFOHDULQJGHEULV 5HF\FOHRUUHXVHZKHQSRVVLEOH x )ROORZDOOJXLGHOLQHVIRUSURSHUPDWHULDOKDQGOLQJDQGVWRUDJH /DEHOWKHFRQWHQWVRIPDWHULDOVDQGVWRUDJHIDFLOLWLHVKDQGOLQJ SUHFDXWLRQVDQGGLVSRVDOLQVWUXFWLRQV +DYHGHWDLOHGSODQVSRVWHGDQGUHDGLO\DFFHVVLEOHIRUDOO SRWHQWLDOKD]DUGRXVVSLOOV +DELWDW x 0LQLPL]HLPSDFWRQWHUUDLQE\DGKHULQJWRVLWHFLUFXODWLRQSODQV x $WWHPSWWRPDLQWDLQH[LVWLQJWRSRJUDSK\WHUUDLQDQGWUHHDQG YHJHWDWLRQSRSXODWLRQ x 3URWHFWDWPRVSKHUHDJDLQVWHPLVVLRQVSURGXFHGWKURXJK FRQVWUXFWLRQSURFHVVHV x &RQWURODQGUHGXFHQRLVHSROOXWLRQ x 0DNHXVHRIQDWXUDOOLJKWLQJDQGYHQWLODWLRQ x 5HIHUHQFHV %HVW0DQDJHPHQW3UDFWLFHVIRU&RQWUDFWRUVDQG,QVSHFWRUV)LHOG 0DQXDORQ6HGLPHQWDQG(URVLRQ&RQWURO-HUDOG6)L¿HOG)RUHVWHU 3UHVV ³'5$)7)HGHUDO*XLGHWR*UHHQ&RQVWUXFWLRQ´(QYLURQPHQWDO 3URWHFWLRQ$JHQF\KWWSZZZZEGJRUJGHVLJQJUHHQVSHFSKS *UHHQLQJ)HGHUDO)DFLOLWLHV%UDWWOHERUR9W%XLOGLQJ*UHHQ,QF +HPPLQZD\3&D6³&RQVWUXFWLRQ,QGXVWU\&RPSOLDQFH $VVLVWDQFH&HQWHU´1DWLRQDO&HQWHUIRU0DQXIDFWXULQJ6FLHQFHVKWWS ZZZFLFDFHQWHURUJLQGH[FIP ³+LJK3HUIRUPDQFH%XLOGLQJ*XLGHOLQHV´<RUN'HSDUWPHQWRI 'HVLJQDQG&RQVWUXFWLRQ1HZ<RUN ³/RZ,PSDFW'HYHORSPHQW'HVLJQ6WUDWHJLHV´86(3$DQG 3ULQFH*HRUJH¶V&RXQW\'HSDUWPHQWRI(QYLURQPHQWDO5HVRXUFHV ³6XVWDLQDEOH%XLOGLQJ7HFKQLFDO0DQXDO´3XEOLF7HFKQRORJ\,QF 86*%&86'2(86(3$ ³:KROH%XLOGLQJ'HVLJQ*XLGH´1DWLRQDO,QVWLWXWHRI%XLOGLQJ6FLHQFHV KWWSZZZZEGJRUJLQGH[SKS 6LWH(QYLURQPHQW &KDSWHU6LWH(QYLURQPHQW 3ODQQLQJ *RDO7RKDYHGHWDLOHGVLWHZRUNSODQVZKLFKHQFRXUDJHUHVSRQVLEOH SUDFWLFHVDQGFDUU\RXWWKHLQWHQWRIWKHVXVWDLQDEOHVLWHGHVLJQ .H\,VVXHV x x x x x 0DLQWDLQVRLOSHUPHDELOLW\ 3UHYHQWJURXQGZDWHUFRQWDPLQDWLRQ 3UHVHUYHQDWXUDOYHJHWDWLRQHVWXDULHVDQGKDELWDW 0LQLPL]HHURVLRQWKURXJKVHGLPHQWDWLRQFRQWURO &RPSO\ZLWKHQYLURQPHQWDOODZVDQGUHJXODWLRQV $FWLRQVDQG0HWKRGV 'RFXPHQWWKHVLWH¶VH[LVWLQJQDWXUDOIHDWXUHVHVWXDULHV YHJHWDWLRQHWFDQGSODQWRSUHVHUYHWKHP x &UHDWHDQHQYLURQPHQWDOPDQDJHPHQWSODQIRUGHPROLWLRQDV RSSRVHGWRD³GHPRSODQ´ x 'HYHORSDQGXVHDQHURVLRQDQGVHGLPHQWSROOXWLRQFRQWURO SURJUDPPDQXDO x )RUPXODWHDVSLOOSODQRUUHLWHUDWHVDIHW\SURJUDPJXLGHOLQHVRQ VSLOOV 6HTXHQFLQJDQGVFKHGXOLQJ x 6HOIPRQLWRULQJVKRXOGEHLPSOHPHQWHGWKURXJKRXWFRQVWUXFWLRQ LQFOXGLQJLQVSHFWLRQVRIDOOHURVLRQDQGVHGLPHQWFRQWUROVDIWHU HDFKUXQRIIHYHQWDQGRQDZHHNO\EDVLV x 8VH-XVWLQ7LPHFRQVWUXFWLRQPHWKRGVWRPLQLPL]HVLWH FRQJHVWLRQDQGUHGXFHWKHFRPSDFWLRQRISHUYLRXVVXUIDFHV 7KLQNWKURXJKGHOLYHU\VWDJLQJDQGUHPRYDORIZDVWHUHF\FOLQJ SHUYLRXVEXIIHUVSDFHVDQGJHQHUDOFLUFXODWLRQRIWKHVLWH x 6HTXHQFHDVSKDOWSDYLQJDQGRUURDGEHGVWKDWFDQEHXVHGDV ¿QDOEHGIRUSDYLQJFRQFUHWHRUDVSKDOWHDUO\WRSURYLGHFOHDQHU VXUIDFHV 0DWHULDOVWRUDJH x x )RUQHZPXOWLVWRU\SURMHFWVVWRUHPDWHULDOVQHFHVVDU\IRUHDFK ÀRRUSULRUWRFRPSOHWLRQRIWKDWÀRRU¶VGHFN 6LWH(QYLURQPHQW 7HPSRUDU\SRZHU x 8VHWHPSRUDU\H[WHULRUOLJKWLQJDQGSRZHUVRXUFHVXQWLOVWDQGDUG OLJKWLQJDQGHOHFWULFLW\LVLQVWDOOHG6ZLWFKRYHUDVHDUO\DV SRVVLEOHWRUHGXFHWKHQXPEHURIUXQVQHFHVVDU\WRKDQGOHWKH FRQVWUXFWLRQORDG *DWKHUJHRWHFKQLFDOVRLOVUHSRUW x ,GHQWLI\YHJHWDWLRQZLOGOLIHKDELWDWFOLPDWHVRODUWHPSHUDWXUH SUHYDLOLQJZLQGGLUHFWLRQKXPLGLW\SUHFLSLWDWLRQDQGGRPLQDQW ZHDWKHUSDWWHUQVSHFXOLDUWRWKHVLWH 5HTXHVWGHWDLOHGVLWHZRUNSODQVWKDW,QFOXGH x 6LWHOLPLWDWLRQVDFFHVVHJUHVVGUDLQDJHHWFDQGFXUUHQWXVHV LQFOXGLQJDQ\FXUUHQWXWLOLWLHVH[LVWLQJVWUXFWXUHV¿OOSDUNLQJ HWF x $SHUYLRXVVXUIDFHDQDO\VLV x $SUHGHYHORSPHQWDQDO\VLVRIVRLOGUDLQDJHYHJHWDWLRQDQG WHUUDLQ x %HVWPDQDJHPHQWSUDFWLFHVZLWKUHVSHFWWRHURVLRQFRQWURO VLWHFLUFXODWLRQDQGWUDI¿FSODQVDQGVWDJLQJRIPDWHULDOVDQG HTXLSPHQW x $QLQTXLU\WRWKHRZQHUDVWRWKHWHVWLQJIRU5DGRQJDV x $SURFHVVIRUGHDOLQJZLWKVSLOODJHDQGRWKHUKD]DUGRXVPDWHULDO LVVXHV0DWHULDO6DIHW\'DWD6KHHWV x $VLWHOD\RXWSODQRIWHPSRUDU\IDFLOLWLHVWRLOHWVWUDLOHUVWUDVK DQGUHF\FOLQJGXPSVWHUVHWFDGGHGWRVLWHIRUFRQVWUXFWLRQ SXUSRVHV x 5HTXLUHPHQWVIRUYHKLFXODUIDFLOLWLHVDFFHVVSDUNLQJORDGLQJ XQORDGLQJHPHUJHQFLHVHWF x $VWRUPZDWHUGUDLQDJHDQG¿OWHULQJSODQ x (QFRXUDJLQJDOWHUQDWLYHWUDQVSRUWDWLRQRIZRUNHUVWRVLWH GLVWULEXWHSXEOLFWUDQVSRUWURXWHVDQGVFKHGXOHVSURYLGHD FDUSRROLQJEXOOHWLQERDUGHWFZLWKSRVVLEOHLQFHQWLYHVWRUHGXFH WKHFRPSDFWLRQGXHWRZRUNHUYHKLFOHV2WKHUZLVHGHVLJQDWH ZRUNHUSDUNLQJDUHDVDQGFOHDUO\PDUNZDONZD\V 5HIHUHQFHV ³*UHHQ%XLOGLQJ'HVLJQDQG&RQVWUXFWLRQ*XLGHOLQHV´&LW\RI 6DQWD0RQLFD*UHHQ%XLOGLQJ3URJUDPKWWSJUHHQEXLOGLQJVVDQWD PRQLFDRUJLQWURGXFWLRQLQWURGXFWLRQKWPO ³/RZ,PSDFW'HYHORSPHQW'HVLJQ6WUDWHJLHV´86(3$DQG 3ULQFH*HRUJH¶V&RXQW\'HSDUWPHQWRI(QYLURQPHQWDO5HVRXUFHV 6LWH(QYLURQPHQW &KDSWHU6LWH(QYLURQPHQW *HQHUDO&RQGLWLRQV *RDO7RLQFRUSRUDWHVXVWDLQDEOHSUDFWLFHVLQWRWKHEXLOGLQJ¶V VXUURXQGLQJHQYLURQPHQW .H\,VVXHV x x x x x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¿HGB3URMHFWV9,73FDVH6WXG\SGI 6LWH(QYLURQPHQW &KDSWHU6LWH(QYLURQPHQW 'HPROLWLRQDQG$EDWHPHQW *RDO7RORZHUWKHLPSDFWRIFRQVWUXFWLRQRQWKHHQYLURQPHQWGXHWR GHPROLWLRQDQGDEDWHPHQW .H\,VVXHV x x x x x x 0DLQWDLQVRLOSHUPHDELOLW\ 3UHYHQWJURXQGZDWHUFRQWDPLQDWLRQ 3UHVHUYHQDWXUDOYHJHWDWLRQHVWXDULHVDQGKDELWDW 0LQLPL]HHURVLRQWKURXJKVHGLPHQWDWLRQFRQWURO 0LQLPL]HDLUSROOXWLRQGXHWRGXVW &RPSO\ZLWKHQYLURQPHQWDOODZVDQGUHJXODWLRQV $FWLRQVDQG0HWKRGV ,WHPVWRLQFOXGHLQGHPROLWLRQSODQ x 'LVDVVHPEOHEXLOGLQJVWR PD[LPL]HWKHPDWHULDOV VDOYDJHG2XWOLQHWKH GHGLFDWHGDUHDVIRUGH FRQVWUXFWLRQDQGGLVDVVHPEO\ 6HH x x x 5HXVHFRQFUHWHDVEDFN¿OO URDGEDVHRUDJJUHJDWH 7DNHSURSHUSUHFDXWLRQVWRSUHYHQWFRQWDPLQDWLRQRIVLWHGXULQJ GHPROLWLRQDQGUHPRYDORIKD]DUGRXVPDWHULDOV3UHYHQWFRQWDFW ZLWKVWRUPZDWHUWRPDLQWDLQUXQRIIZDWHUTXDOLW\ (QIRUFHDQGFRPPXQLFDWHVLWHFLUFXODWLRQSODQIRUZDVWHDQG UHF\FOLQJUHPRYDOHTXLSPHQWWRPDLQWDLQSHUYLRXVVXUIDFHV 6LWH(QYLURQPHQW &DVH6WXG\ -HDQ9ROOXP1DWXUDO&DSLWDO&HQWHU3RUWODQG25 5HXVHGZDUHKRXVHEXLOWLQ3DUWRIUHYLWDOL]DWLRQHIIRUWLQ3RUWODQG¶V KLVWRULF3HDUO'LVWULFW x &RQVWUXFWLRQ:DVWH 0DQDJHPHQWRI FRQVWUXFWHGPDWHULDOV UHF\FOHGVDOYDJHG x 5HVRXUFH5HXVH 6DOYDJHGPDWHULDOV FRPSULVHGRI WRWDO,QFOXGLQJVWRQH EULFNOXPEHUSDQHOLQJ PROGLQJVKHDY\WLPEHUV DQGGRRUV KWWSZZZXVJEFRUJ'RFV&HUWL¿HGB3URMHFWV(FRWUXVW&DVH6WXG\SGI 5HIHUHQFHV ³/RZ,PSDFW'HYHORSPHQW'HVLJQ6WUDWHJLHV´86(3$DQG 3ULQFH*HRUJH¶V&RXQW\'HSDUWPHQWRI(QYLURQPHQWDO5HVRXUFHV 6LWH(QYLURQPHQW &KDSWHU6LWH(QYLURQPHQW 6LWH:RUN *RDO7RORZHUWKHLPSDFWRIFRQVWUXFWLRQRQWKHHQYLURQPHQWGXHWR VLWHZRUN .H\,VVXHV x x x x x 0DLQWDLQVRLOSHUPHDELOLW\ 3UHYHQWJURXQGZDWHUFRQWDPLQDWLRQ 3UHVHUYHQDWXUDOYHJHWDWLRQHVWXDULHVDQGKDELWDW 0LQLPL]HHURVLRQWKURXJKVHGLPHQWDWLRQFRQWURO &RPSO\ZLWKHQYLURQPHQWDOODZVDQGUHJXODWLRQV $FWLRQVDQG0HWKRGV 6LWHFRQVLGHUDWLRQV x 0LQLPL]HWKHDUHDWREHFOHDUHGRUJUDGHG x 6WRFNSLOHWRSVRLOLQVWRUDJHSLOHVRURWKHUZLVHSURWHFWGXULQJ FRQVWUXFWLRQ3URWHFWSLOHVDJDLQVWVWRUPZDWHUHURVLRQE\ FRQVWUXFWLQJWKHPWRIUHHO\GUDLQVXUIDFHZDWHUIRUH[DPSOH OHVVWKDQ¶LQKHLJKWDQGZLWKVORSHVRIRUÀDWWHU&RYHUWR SUHYHQWGXVW 5HGXFHWKHVL]HRILPSHUYLRXVDUHDV'LVFRQQHFWWKHPZKHQ SRVVLEOH x :KHQSRVVLEOHOLPLWHTXLSPHQWWUDI¿FDQGVWDJLQJORFDWLRQVWR DUHDVWKDWZLOOHYHQWXDOO\EHSDYHG 6WRUPZDWHU x 'LVSHUVHVWRUPZDWHUDFFRUGLQJWRSUHFRQVWUXFWLRQVLWHZRUN SODQV0DLQWDLQWKHQDWXUDOGUDLQDJHRIWKHVLWHÀRZYROXPH IUHTXHQF\GXUDWLRQDQGUXQRIIUDWHDVGHWDLOHGLQWKHLQLWLDOVLWH DQDO\VLV x 0DQDJHHURVLRQE\VORZLQJGRZQVXUIDFHZDWHUPDLQWDLQ ZHWODQGVFRQVWUXFWVHGLPHQWSRQGVSHUYLRXVSDYHPHQWHWF x &OHDQZDWHUSULRUWROHDYLQJWKHVLWHWRPDLQWDLQZDWHUTXDOLW\ $WPRVSKHUH x %HFRQVFLRXVRIHPLVVLRQVRIYHKLFOHVDQGHTXLSPHQW'RQRW OHDYHHTXLSPHQWUXQQLQJXQOHVVUHVWDUWLVVXHVDUHDFRQFHUQ x 6LWH(QYLURQPHQW 8VHSURSHUGXVWFRQWUROWHFKQLTXHVDORQJFLUFXODWLRQSDWKVVXFK DVRFFXUUHQFHZDWHULQJGXVWFRQWUROSRO\PHUVHWF ([LVWLQJVLWH x 0LQLPL]HWKHUHPRYDORIWUHHVDQGYHJHWDWLRQ x 0XOFKRUFRPSRVWRQVLWHYHJHWDWLRQWKDWKDVEHHQUHPRYHG IURPVLWH x 6HOOOXPEHURIWUHHVQHHGLQJWREHFOHDUHG'RQRWVODVKDQG EXUQ8VHVHOHFWLYHFXWWLQJWHFKQLTXHV x 0DLQWDLQWKHH[LVWLQJWRSRJUDSK\DQGWHUUDLQ'HFUHDVHVORSHV RIJUDGHGDUHDVE\FDUU\LQJWKHULVHRYHUDORQJHUVWUHWFK x 8VHQRQLQYDVLYHWHFKQRORJLHVH[WUHQFKOHVVDQGFOHDQFXW IRXQGDWLRQV x 3ODFHDOOH[FDYDWHGPDWHULDORQXSKLOOVLGHVRIWUHQFKHVWR SUHYHQWVXUIDFHZDWHUIURPHQWHULQJWUHQFK%DFN¿OOH[SRVHG WUHQFKHVGDLO\ x 3ODQWDUHDVFOHDUHGRUJUDGHGZLWKQDWLYHVSHFLHVRIWKHVLWH 6HTXHQFH x 8VH-XVWLQ7LPHFRQVWUXFWLRQPHWKRGVWRPLQLPL]HVLWH FRQJHVWLRQDQGUHGXFHWKHFRPSDFWLRQRISHUYLRXVVXUIDFHV 7KLQNWKURXJKGHOLYHU\VWDJLQJDQGUHPRYDORIZDVWHUHF\FOLQJ SHUYLRXVEXIIHUVSDFHVDQGJHQHUDOFLUFXODWLRQRIWKHVLWH x 6HTXHQFHDVSKDOWSDYLQJHDUO\WRSURYLGHFOHDQHUVXUIDFHV x &DVH6WXG\ &DPEULD2I¿FH%XLOGLQJ(EHQVEXUJ3$ 5HGXFHG6LWH'LVWXUEDQFHRIWKHVLWH ZDVUHWDLQHGDVRSHQVSDFH 6WRUPZDWHU0DQDJHPHQW1RZHWODQGV DUHLPSDFWHGQHZZHWODQGVZHUHFUHDWHGD SRUWLRQRISDYLQJLVSHUYLRXVWKHUHLVQRQHW LQFUHDVHRIVWRUPZDWHUUXQRII KWWSZZZXVJEFRUJ'RFV&HUWL¿HGB3URMHFWV&DPEULD&DVH6WXG\SGI 5HIHUHQFHV ³/RZ,PSDFW'HYHORSPHQW'HVLJQ6WUDWHJLHV´86(3$DQG 3ULQFH*HRUJH¶V&RXQW\'HSDUWPHQWRI(QYLURQPHQWDO5HVRXUFHV ³5HGXFLQJ5XQRII3RURXV3DYHPHQW´1RQSRLQW(GXFDWLRQIRU0XQLFLSDO 2I¿FLDOVKWWSQHPRXFRQQHGXUHGXFLQJBUXQRIISRURXVBSDYHPHQWKWP 6LWH(QYLURQPHQW &KDSWHU6LWH(QYLURQPHQW )RXQGDWLRQV *RDO7RORZHUWKHLPSDFWVRIFRQVWUXFWLRQRQWKHHQYLURQPHQWGXHWR IRXQGDWLRQZRUN .H\,VVXHV x x x x x 0DLQWDLQVRLOSHUPHDELOLW\ 3UHYHQWJURXQGZDWHUFRQWDPLQDWLRQ 3UHVHUYHQDWXUDOYHJHWDWLRQHVWXDULHVDQGKDELWDW 0LQLPL]HHURVLRQWKURXJKVHGLPHQWDWLRQFRQWURO &RPSO\ZLWKHQYLURQPHQWDOODZVDQGUHJXODWLRQV $FWLRQVDQG0HWKRGV 8VHGHZDWHULQJDQGHURVLRQFRQWUROPHWKRGVDVGH¿QHGLQ VHFWLRQ x &KHFNHTXLSPHQWDQGYHKLFOHVIRUKD]DUGRXVOHDNVIUHTXHQWO\ WKURXJKRXWWKHSURMHFW x 8VHWUHQFKOHVVRUFOHDQFXWIRXQGDWLRQWHFKQLTXHVWRSUHYHQW H[FHVVLYHLPSHUYLRXVVXUIDFHV 6LWHORJLVWLFV x 'HVLJQDWHWUXFNDQGYHKLFOHFOHDQLQJDUHDV x 5HIXHOHTXLSPHQWRQO\LQGHGLFDWHGDUHDV3URWHFWDJDLQVW VSLOODJHDQGSRVWSURSHUJXLGHOLQHV06'6IRUGHDOLQJZLWK KD]DUGRXVPDWHULDOJURXQGFRQWDPLQDWLRQ x 6WRFNSLOHVRLODQGVHHGRUWDUSWKHGLUWPRXQGVWRSUHYHQW HURVLRQ x 3ODFHDOOH[FDYDWHGPDWHULDORQXSKLOOVLGHVRIWUHQFKHVWR SUHYHQWVXUIDFHZDWHUIURPHQWHULQJWUHQFK%DFN¿OOWUHQFKHV GDLO\ 6HDOHUV x x x 3URYLGHSURWHFWLRQDJDLQVWJURXQGZDWHUFRQWDPLQDWLRQZKHQ XVLQJH[WHULRUFRQFUHWHVHDOHUVJHRPHPEUDQHVHWF &RQVLGHUPRUHHQYLURQPHQWDOO\IULHQGO\VHDOHUVDQGELREDVHG IRUPUHOHDVLQJDJHQWV5HI6HFWLRQ 6LWH(QYLURQPHQW &DVH6WXG\ )HGHUDO%XLOGLQJ±86&RXUWKRXVH<RXQJVWRZQ2+ %URZQ¿HOGVLWH VTIWRISUHYLRXVO\SDYHG DUHDZDVUHXVHGDVHQJLQHHUHG ¿OOIRUQHZFRQVWUXFWLRQUDWKHU WKDQDGGLQJWRORFDOODQG¿OOV 2YHUOEVRIFRQFUHWH ZHUHUHF\FOHG KWWSZZZRIHHJRYVE\RXQJVWRZQKWP 5HIHUHQFHV ³/RZ,PSDFW'HYHORSPHQW'HVLJQ6WUDWHJLHV´86(3$DQG 3ULQFH*HRUJH¶V&RXQW\'HSDUWPHQWRI(QYLURQPHQWDO5HVRXUFHV 6LWH(QYLURQPHQW &KDSWHU6LWH(QYLURQPHQW 6XEVWUXFWXUH *RDO7RORZHUWKHLPSDFWVRIFRQVWUXFWLRQRQWKHHQYLURQPHQWGXHWR VXEVWUXFWXUHZRUN .H\,VVXHV x x x x x 0DLQWDLQVRLOSHUPHDELOLW\ 3UHYHQWJURXQGZDWHUFRQWDPLQDWLRQ 3UHVHUYHQDWXUDOYHJHWDWLRQHVWXDULHVDQGKDELWDW 0LQLPL]HHURVLRQWKURXJKVHGLPHQWDWLRQFRQWURO &RPSO\ZLWKHQYLURQPHQWDOODZVDQGUHJXODWLRQV $FWLRQVDQG0HWKRGV x x x x 3URYLGHSURWHFWLRQDJDLQVWJURXQGZDWHUFRQWDPLQDWLRQGXULQJ ZDWHUSURR¿QJJHRPHPEUDQHHWF 8VH³JUHHQ´VHDODQWVWKDWSUHYHQWSHQHWUDWLRQVWKURXJKWKH IRXQGDWLRQZDOOV5HI6HFWLRQ )ROORZSODQIRUHURVLRQFRQWURODQGVXUIDFHZDWHUGLIIXVLRQGXULQJ VXEVWUXFWXUHHUHFWLRQ 5HF\FOHIRUPZRUNZLOOUHTXLUHELREDVHGIURPUHOHDVHDJHQWRU XVHDOWHUQDWLYHWHFKQRORJLHVH[,&)V 6LWH(QYLURQPHQW (PHUJLQJ7HFKQRORJ\ ,QVXODWLQJ&RQFUHWH)RUPV,&)V +LJKO\YHUVDWLOHIRUPZRUNDQG LQVXODWLRQ 'HFUHDVHVSRXUWLPHDQGUHGXFHV RYHUDOODPRXQWRIFRQFUHWHUHTXLUHG 'XUDEOH (QHUJ\HI¿FLHQW ([WHULRUQRLVHLVJUHDWO\UHGXFHG KWWSZZZTXDGORFNFRPLPDJHVJHQHUDOB FRQVWUXFWLRQZDOOBWUDQVLWLRQBKRUL]RQWDOMSJ 5HIHUHQFHV ³/RZ,PSDFW'HYHORSPHQW'HVLJQ6WUDWHJLHV´86(3$DQG 3ULQFH*HRUJH¶V&RXQW\'HSDUWPHQWRI(QYLURQPHQWDO5HVRXUFHV 6LWH(QYLURQPHQW &KDSWHU6LWH(QYLURQPHQW 6XSHUVWUXFWXUH *RDO7RORZHUWKHLPSDFWVRIFRQVWUXFWLRQRQWKHHQYLURQPHQWGXHWR VXSHUVWUXFWXUHZRUN .H\,VVXHV x x x x x 0DLQWDLQVRLOSHUPHDELOLW\ 3UHYHQWJURXQGZDWHUFRQWDPLQDWLRQ 3UHVHUYHQDWXUDOYHJHWDWLRQHVWXDULHVDQGKDELWDW 0LQLPL]HHURVLRQWKURXJKVHGLPHQWDWLRQFRQWURO &RPSO\ZLWKHQYLURQPHQWDOODZVDQGUHJXODWLRQV $FWLRQVDQG0HWKRGV x x &RQVLGHUUHWXUQLQJXQXVHGPDWHULDOVWRWKHPDQXIDFWXUHUHJ UHEDUVWDQGDUGVL]HVWHHOPHPEHUVRUWUXVVHVPLVFHOODQHRXV PHWDOV&08EORFNEULFN 3URWHFWWKHVLWHDJDLQVWFRQWDPLQDWLRQGXULQJSDLQWLQJ ¿UHSURR¿QJDQGRWKHUSRWHQWLDOO\KD]DUGRXVPDWHULDOXVDJHV JHRPHPEUDQHVHWF 8VHSURWHFWLYHFRQWDLQHUVWRSURWHFWVLWHDJDLQVWUXVWIURPVFUDS PHWDO2UNHHSWKHPRIWKHJURXQG &RQFUHWH x 8VHFRQFUHWHZDVWHLQ SURGXFWLYHPDQQHUH[ -HUVH\EDUULHUVUHF\FOHLQWR DJJUHJDWH'RQRWGXPS ZDVWHFRQFUHWH x *LYHSUHIHUHQFHWRRIIVLWH SUHIDEULFDWHGDVVHPEOLHVHJSUHFDVWFRQFUHWHRYHUVLWH IDEULFDWHGDVVHPEOLHVHJWLOWXSFRQVWUXFWLRQZKLFKUHTXLUH PRUHVSDFHIRUDVVHPEO\DQGLQFUHDVHVLWHGLVWXUEDQFH x x x $OZD\VUHF\FOHVWHHOVFUDSV 6HHNDOWHUQDWLYHVWRVWDQGDUG¿UHSURR¿QJHQYLURQPHQWDOO\ IULHQGO\¿UHSURR¿QJPDWHULDOVQRZDYDLODEOH 6LWH(QYLURQPHQW 6LWHORJLVWLFV x 2UJDQL]HOD\GRZQPDWHULDOVLQRUGHURIXVHLHQH[WPDWHULDOWR EHXVHGFORVHVWWRZRUNDFWLYLW\ x 5HGXFHWKHVLWHLPSDFWRIPDFKLQHU\DQGFUDQHV*LYH SUHIHUHQFHWRWRZHUFUDQHVZLWKODUJHERRPVDQGFRQWUROOHG SRVLWLRQVRYHUPRELOHFUDQHVZKLFKDODUJHUVLWHDUHD 5HIHUHQFHV ³/RZ,PSDFW'HYHORSPHQW'HVLJQ6WUDWHJLHV´86(3$DQG 3ULQFH*HRUJH¶V&RXQW\'HSDUWPHQWRI(QYLURQPHQWDO5HVRXUFHV 6LWH(QYLURQPHQW &KDSWHU6LWH(QYLURQPHQW ([WHULRU(QFORVXUH *RDO7RORZHUWKHLPSDFWVRIFRQVWUXFWLRQRQWKHHQYLURQPHQWGXHWR H[WHULRUFORVXUHZRUN .H\,VVXHV x x x x x 0DLQWDLQVRLOSHUPHDELOLW\ 3UHYHQWJURXQGZDWHUFRQWDPLQDWLRQ 3UHVHUYHQDWXUDOYHJHWDWLRQHVWXDULHVDQGKDELWDW 0LQLPL]HHURVLRQWKURXJKVHGLPHQWDWLRQFRQWURO &RPSO\ZLWKHQYLURQPHQWDOODZVDQGUHJXODWLRQV $FWLRQVDQG0HWKRGV 3URWHFWSHULPHWHURIEXLOGLQJZLWKPHWDOSODWHVRUVRPHRWKHU IRUPRIJURXQGSURWHFWLRQWRUHGXFHFRPSDFWLRQ$OVRSODQIRU WKHH[WHULRUFORVXUH¶VLPSDFWRQWKHHURVLRQFRQWUROVWUDWHJLHV x 6KLHOGDJDLQVWVSLOODJHRIVHDODQWVDQGFDXONVWRUHGXFHVRLODQG JURXQGZDWHUFRQWDPLQDWLRQ x 3URYLGHVLJQDJHGLUHFWLQJZDVWHDQGUHF\FOLQJWRSURSHUGLVSRVDO SRLQWV6HH:DVWH3UHYHQWLRQDQG5HF\FOLQJFKDSWHUVLQVHFWLRQV 0DWHULDOVWRUDJH x 3URWHFWPDWHULDOVIURPUDLQDQGJURXQGZDWHUXVHWDUSVVWDJH XQGHUSURWHFWHGVWUXFWXUHVHWF x 6WDJHPDWHULDOVVFDIIROGLQJDQGOLIWVRQVLWHRQQRQSHUYLRXV VXUIDFHV0D[LPL]HPRYHPHQWVDQGSODFHPHQWVRIVFDIIROGLQJ DQGOLIWVWRUHGXFHWUDI¿FDURXQGSHULPHWHU&RQVLGHUXVLQJ FRRUGLQDWHGSODFHPHQWVWUDWHJLHV 6HTXHQFLQJ x 8VH³-XVWLQ7LPH´GHOLYHU\RIPDWHULDOVWRPLQLPL]HFRPSDFWLRQ x 5HIHUHQFHV ³/RZ,PSDFW'HYHORSPHQW'HVLJQ6WUDWHJLHV´86(3$DQG 3ULQFH*HRUJH¶V&RXQW\'HSDUWPHQWRI(QYLURQPHQWDO5HVRXUFHV 6LWH(QYLURQPHQW &KDSWHU6LWH(QYLURQPHQW 5RR¿QJ *RDO7RORZHUWKHLPSDFWVRIFRQVWUXFWLRQRQWKHHQYLURQPHQWGXHWR URR¿QJZRUN .H\,VVXHV x x x x x 0DLQWDLQVRLOSHUPHDELOLW\ 3UHYHQWJURXQGZDWHUFRQWDPLQDWLRQ 3UHVHUYHQDWXUDOYHJHWDWLRQHVWXDULHVDQGKDELWDW 0LQLPL]HHURVLRQWKURXJKVHGLPHQWDWLRQFRQWURO &RPSO\ZLWKHQYLURQPHQWDOODZVDQGUHJXODWLRQV $FWLRQVDQG0HWKRGV x x 8VHJURXQGSURWHFWLRQJHRPHPEUDQHVHWFWRSUHYHQW FRQWDPLQDWLRQIURPZDVWHDQGVSLOODJHVSURGXFHGWKURXJK URR¿QJFRQVWUXFWLRQ 8VHPDQXIDFWXUHU¶VUHFRPPHQGDWLRQIRUSURSHUGLVSRVDORI H[FHVVPDWHULDOV3RVWLQVWUXFWLRQVIRUKD]DUGRXVURR¿QJ PDWHULDOVSLOODJHV +DYHHURVLRQFRQWURODQGVXUIDFHZDWHUGLIIXVLRQVWUDWHJLHV LPSOHPHQWHGSULRUWRWKHLQFUHWLRQDQGUHGLUHFWLRQRIWKHUXQRII FDXVHGE\WKHURR¿QJLQVWDOODWLRQ 0DWHULDOVWRUDJH x 3URWHFWPDWHULDOVIURPUDLQDQGJURXQGPRLVWXUHWDUSVDQGRWKHU JHRPHPEUDQHVHWF x 6WDJHURR¿QJPDWHULDOVDQGHTXLSPHQWRQQRQSHUYLRXV VXUIDFHV x 3RVLWLRQKRWNHWWOHVDQGRWKHUIXPHSURGXFLQJHTXLSPHQWZLWK FRQFHUQIRUZLQGGLUHFWLRQDQGQHLJKERULQJHQYLURQPHQW x 6LWH(QYLURQPHQW (PHUJLQJ7HFKQRORJ\ *UHHQDQG%URZQ5RRIV 'UDPDWLFDOO\UHGXFHVWRUPUXQRII E\GLVVLSDWLQJPRLVWXUHQDWXUDOO\ 5HGXFHXUEDQKHDWLVODQGVE\ UHGXFLQJURRIWRSWHPSHUDWXUHV 5HGXFHHQHUJ\UHTXLUHPHQWV RIWKHEXLOGLQJE\VORZLQJWKH WUDQVIHURIKHDWLQWRDQGRXW RIWKHEXLOGLQJ7KLVUHGXFHV ERWKKHDWLQJDQGFRROLQJ UHTXLUHPHQWV /RZHUPDLQWHQDQFHUHTXLUHG /RQJHUOLIHH[SHFWDQFLHV *UHHQURRIVDOVRRIIHU FRPIRUWDEOH³SDUNOLNH´VHWWLQJV 5HIHUHQFHV ³/RZ,PSDFW'HYHORSPHQW'HVLJQ6WUDWHJLHV´86(3$DQG 3ULQFH*HRUJH¶V&RXQW\'HSDUWPHQWRI(QYLURQPHQWDO5HVRXUFHV 6LWH(QYLURQPHQW &KDSWHU6LWH(QYLURQPHQW ,QWHULRU&RQVWUXFWLRQ *RDO7RORZHUWKHLPSDFWVRIFRQVWUXFWLRQRQWKHHQYLURQPHQWGXHWR LQWHULRUFRQVWUXFWLRQZRUN .H\,VVXHV x x x x x 0DLQWDLQVRLOSHUPHDELOLW\ 3UHYHQWJURXQGZDWHUFRQWDPLQDWLRQ 3UHVHUYHQDWXUDOYHJHWDWLRQHVWXDULHVDQGKDELWDW 0LQLPL]HHURVLRQWKURXJKVHGLPHQWDWLRQFRQWURO &RPSO\ZLWKHQYLURQPHQWDOODZVDQGUHJXODWLRQV $FWLRQVDQG0HWKRGV x x +HDY\DPRXQWVRIZDVWHDQGVFUDSSURGXFHGWKURXJKLQWHULRU FRQVWUXFWLRQVKRXOGEHGLVSRVHGRISURSHUO\ 0RQLWRUZDVWHDQGUHF\FOLQJGHVLJQDWHGDUHDVWRHQIRUFH UHVSRQVLEOHSUDFWLFHV 5HIHUHQFHV ³/RZ,PSDFW'HYHORSPHQW'HVLJQ6WUDWHJLHV´86(3$DQG 3ULQFH*HRUJH¶V&RXQW\'HSDUWPHQWRI(QYLURQPHQWDO5HVRXUFHV 6LWH(QYLURQPHQW &KDSWHU6LWH(QYLURQPHQW &RQYH\LQJ6\VWHPV *RDO7RORZHUWKHLPSDFWRIFRQVWUXFWLRQRQWKHHQYLURQPHQWGXHWR FRQYH\LQJV\VWHPVZRUN .H\,VVXHV x x x x x 0DLQWDLQVRLOSHUPHDELOLW\ 3UHYHQWJURXQGZDWHUFRQWDPLQDWLRQ 3UHVHUYHQDWXUDOYHJHWDWLRQHVWXDULHVDQGKDELWDW 0LQLPL]HHURVLRQWKURXJKVHGLPHQWDWLRQFRQWURO &RPSO\ZLWKHQYLURQPHQWDOODZVDQGUHJXODWLRQV $FWLRQVDQG0HWKRGV x x 8VHHFRIULHQGO\K\GUDXOLFÀXLG 3URWHFWJURXQGDJDLQVWFRQWDPLQDWLRQIURPHOHYDWRUSLWZDWHU SURR¿QJJHRPHPEUDQHVHWF (PHUJLQJ7HFKQRORJ\ *HQ(OHYDWRU 7KLVHOHYDWRUKDVDQHZVXVSHQVLRQ WHFKQRORJ\WKDWIXQFWLRQVZLWKRXWD PDFKLQHU\URRP7KHUHVXOWVDUHD UHGXFWLRQRIWKHRYHUDOOPDWHULDOVXVHG DVXEVWDQWLDOHQHUJ\VDYLQJVDQDUURZHU GHVLJQUHGXFHGFRQVWUXFWLRQFRVWVDOHVV QRLV\HOHYDWRUDQGDPRUHFRPIRUWDEOH WUDQVSRUW ZZZRWLVFRP 6LWH(QYLURQPHQW &KDSWHU6LWH(QYLURQPHQW 0HFKDQLFDO *RDO7RORZHUWKHLPSDFWRIFRQVWUXFWLRQRQWKHHQYLURQPHQWGXHWR PHFKDQLFDOZRUN .H\,VVXHV x x x x x 0DLQWDLQVRLOSHUPHDELOLW\ 3UHYHQWJURXQGZDWHUFRQWDPLQDWLRQ 3UHVHUYHQDWXUDOYHJHWDWLRQHVWXDULHVDQGKDELWDW 0LQLPL]HHURVLRQWKURXJKVHGLPHQWDWLRQFRQWURO &RPSO\ZLWKHQYLURQPHQWDOODZVDQGUHJXODWLRQV $FWLRQVDQG0HWKRGV x x x x )ROORZ60$&1$,$4*XLGHOLQHVIRURFFXSLHGEXLOGLQJV 5HIHUHQFH&KDSWHU 3URWHFWDJDLQVWOHDNVGXULQJV\VWHPWHVWVRIPHFKDQLFDODQG VSULQNOHUV\VWHPV&RQVLGHUXVLQJJO\FROVROXWLRQV 6WDJHDOOPDMRUHTXLSPHQWRQQRQSHUYLRXVVXUIDFHV (QFDVHDOO39&XQGHUJURXQGLQFRQFUHWH 5HIHUHQFHV ³'XFW&OHDQOLQHVVIRU1HZ&RQVWUXFWLRQ*XLGHOLQHV´6KHHW0HWDODQG $LU&RQGLWLRQLQJ&RQWUDFWRUV¶1DWLRQDO$VVRFLDWLRQ,QF60$&1$ &KDQWLOO\9$ 6LWH(QYLURQPHQW &KDSWHU6LWH(QYLURQPHQW (OHFWULFDO *RDO7RORZHUWKHLPSDFWRIFRQVWUXFWLRQRQWKHHQYLURQPHQWGXHWR HOHFWULFDOZRUN .H\,VVXHV x x x x x 0DLQWDLQVRLOSHUPHDELOLW\ 3UHYHQWJURXQGFRQWDPLQDWLRQ 3UHVHUYHQDWXUDOYHJHWDWLRQHVWXDULHVDQGKDELWDW 0LQLPL]HHURVLRQWKURXJKVHGLPHQWDWLRQFRQWURO &RPSO\ZLWKHQYLURQPHQWDOODZVDQGUHJXODWLRQV $FWLRQVDQG0HWKRGV x x x x x x 3URWHFWFRQGXLWWUHQFKHVDJDLQVWVWRUPZDWHUDQGHURVLRQ (QFDVHDOO39&XQGHUJURXQGLQFRQFUHWH 8VHHI¿FLHQWRXWGRRUOLJKWLQJVXFKDVFXWRIIOXPLQDULHV 8VHFOHDQFXWWUHQFKHVDQGFRQVXOWWKHVLWHSURWHFWLRQSODQVDQG DQDO\VLVSULRUWRDQ\VLWHGLVWXUEDQFHVQHFHVVDU\ 3ODFHDOOH[FDYDWHGPDWHULDOXSKLOORIWUHQFKHVWRSUHYHQWVXUIDFH ZDWHUIURPHQWHULQJWUHQFK%DFN¿OOWUHQFKHVGDLO\ 8VHWHPSRUDU\H[WHULRUOLJKWLQJDQGSRZHUVRXUFHVXQWLOVWDQGDUG OLJKWLQJDQGHOHFWULFLW\LVLQVWDOOHG6ZLWFKRYHUDVHDUO\DV SRVVLEOHWRUHGXFHWKHQXPEHURIFLUFXLWVQHFHVVDU\WRKDQGOH WKHFRQVWUXFWLRQORDG (PHUJLQJ7HFKQRORJ\ &XWRII/LJKWLQJIRU([WHULRU8VH $IXOOFXWRIIOLJKWLQJ¿[WXUHRQHZLWKQRGLUHFW XSOLJKWDWDOODQGZLWKHVVHQWLDOO\QRJODUH $OOWKHOLJKWLVXVHGQRQHLVZDVWHG(QHUJ\ LVFRQVHUYHG 1RDGYHUVHHIIHFWVRIEDGOLJKWLQJ 5HGXFHVOLJKWSROOXWLRQ 6LWH(QYLURQPHQW &KDSWHU6LWH(QYLURQPHQW ,QIRUPDWLRQ7HFKQRORJ\ *RDO7RORZHUWKHLPSDFWVRIFRQVWUXFWLRQRQWKHHQYLURQPHQWGXHWR LQIRUPDWLRQWHFKQRORJ\ZRUN .H\,VVXHV x x x x x 0DLQWDLQVRLOSHUPHDELOLW\ 3UHYHQWJURXQGFRQWDPLQDWLRQ 3UHVHUYHQDWXUDOYHJHWDWLRQHVWXDULHVDQGKDELWDW 0LQLPL]HHURVLRQWKURXJKVHGLPHQWDWLRQFRQWURO &RPSO\ZLWKHQYLURQPHQWDOODZVDQGUHJXODWLRQV $FWLRQVDQG0HWKRGV x x 8VHFOHDQFXWWUHQFKHVDQGFRQVXOWWKHVLWHSURWHFWLRQSODQVDQG DQDO\VLVSULRUWRDQ\VLWHGLVWXUEDQFHVQHFHVVDU\ 3ODFHDOOH[FDYDWHGPDWHULDORQXSKLOOVLGHVRIWUHQFKHVWR SUHYHQWVXUIDFHZDWHUIURPHQWHULQJWUHQFK%DFN¿OOWUHQFKHV GDLO\ 6LWH(QYLURQPHQW &KDSWHU6LWH(QYLURQPHQW (TXLSPHQW *RDO7RORZHUWKHLPSDFWVRIFRQVWUXFWLRQRQWKHHQYLURQPHQWGXHWR HTXLSPHQWLQVWDOODWLRQ .H\,VVXHV x x x x x 0DLQWDLQVRLOSHUPHDELOLW\ 3UHYHQWJURXQGFRQWDPLQDWLRQ 3UHVHUYHQDWXUDOYHJHWDWLRQHVWXDULHVDQGKDELWDW 0LQLPL]HHURVLRQWKURXJKVHGLPHQWDWLRQFRQWURO &RPSO\ZLWKHQYLURQPHQWDOODZVDQGUHJXODWLRQV 6LWH(QYLURQPHQW &KDSWHU6LWH(QYLURQPHQW )LQLVKHV *RDO7RORZHUWKHLPSDFWVRIFRQVWUXFWLRQRQWKHHQYLURQPHQWGXHWR ¿QLVKZRUN .H\,VVXHV x x x x x 0DLQWDLQVRLOSHUPHDELOLW\ 3UHYHQWJURXQGFRQWDPLQDWLRQ 3UHVHUYHQDWXUDOYHJHWDWLRQHVWXDULHVDQGKDELWDW 0LQLPL]HHURVLRQWKURXJKVHGLPHQWDWLRQFRQWURO &RPSO\ZLWKHQYLURQPHQWDOODZVDQGUHJXODWLRQV $FWLRQVDQG0HWKRGV x x x x x x x )ROORZ60$&1$,$4*XLGHOLQHVIRURFFXSLHGEXLOGLQJV 5HIHUHQFH&KDSWHU 3URSHUO\GLVSRVHRISDLQWDQGYDUQLVKHV8VHPDQXIDFWXUHU JXLGHOLQHV 3RVWVLJQDJHLQUHDGLO\DFFHVVLEOHORFDWLRQIRUWKHGLUHFWLRQVRI IRUHVHHDEOHVSLOODJHRIDQ\KD]DUGRXVPDWHULDOVEHLQJXVHG 3URWHFWDJDLQVWJURXQGFRQWDPLQDWLRQE\H[WHULRUFRQFUHWH VHDODQWVDQGVWDLQVJHRPHPEUDQHVHWF 3UHYHQWIXPHEXLOGXSE\XVLQJSURSHUYHQWLODWLRQXWLOL]HIDQV ZKHQQHFHVVDU\ )LQLVKVLWHXVLQJQDWXUDODQGLQGLJHQRXVVXUIDFHVZKHQSRVVLEOH /RRVHQVRLOLQDOOSODQWLQJDUHDVWRDGHSWKRI´DQG VWDQGDUGGHQVLW\7LOOWKHWRS´ 6LWH(QYLURQPHQW (PHUJLQJ7HFKQRORJ\ 3RURXV3DYLQJ 3RURXVSDYHPHQWLVGHVLJQHGWRDOORZVWRUPZDWHU WRSDVVWKURXJK7KLV¿OWHUVWKHZDWHUDQGKHOSVWR HOLPLQDWHVXUIDFHUXQRIIFRPPRQO\DVVRFLDWHGZLWK QRUPDODVSKDOW 3KRWRIURP7LWDQ$PHULFD 5HIHUHQFHV ³/RZ,PSDFW'HYHORSPHQW'HVLJQ6WUDWHJLHV´86(3$DQG 3ULQFH*HRUJH¶V&RXQW\'HSDUWPHQWRI(QYLURQPHQWDO5HVRXUFHV ³5HGXFLQJ5XQRII3RURXV3DYHPHQW´1RQSRLQW(GXFDWLRQIRU0XQLFLSDO 2I¿FLDOVKWWSQHPRXFRQQHGXUHGXFLQJBUXQRIISRURXVBSDYHPHQWKWP 6LWH(QYLURQPHQW &KDSWHU0DWHULDO6HOHFWLRQ *RDO7RHGXFDWHDQGIDPLOLDUL]HLQGLYLGXDOVWRHQYLURQPHQWDOO\ IULHQGO\PDWHULDOVDVZHOODVWKRVHZKLFKFDXVHWKHPRVWKDUPWRRXU HQYLURQPHQW %HQH¿WV x x x 5HGXFHSROOXWDQWVDQGUHVRXUFHVFRQVXPHGIURPPDWHULDO SURGXFWLRQE\SXUFKDVLQJSUHIHUDEOHPDWHULDOV 5HGXFHIXHODQGWUDQVSRUWDWLRQFRVWV 5HGXFHVROLGZDVWHSUREOHPVFXWHQHUJ\FRQVXPSWLRQLQ PDQXIDFWXULQJDQGVDYHRQQDWXUDOUHVRXUFHXVH 6XVWDLQDEOH0DWHULDOVDUH« x x x x x x x 'XUDEOH 5HXVHGRUVDOYDJHG +LJKUHF\FOHGFRQWHQW 5DSLGO\UHQHZDEOH %LRGHJUDGDEOH 5HXVDEOH /RFDOO\PDQXIDFWXUHG 0DWHULDOVWR$YRLG x x x x x &)&¶VDQG+&)&¶V$YRLGR]RQHGHSOHWLQJFKHPLFDOVLQ PHFKDQLFDOHTXLSPHQWDQGLQVXODWLRQPDGHRI&)&VDQG +&)&¶V5HFODLP&)&VZKHQVHUYLFLQJRUGLVSRVLQJRI HTXLSPHQW 92&V9RODWLOH2UJDQLF&RPSRXQGVIRXQGLQSDLQWVDQG FRDWLQJVDGKHVLYHVDQGVHDODQWVFDUSHWDQGFRPSRVLWHZRRG 39& :RRGWUHDWHGZLWKFRSSHUFKURPLXPDUVHQDWH&&$ 3%73HUVLVWHQW%LRDFFXPXODWLYH7R[LF&KHPLFDOVHJ PHUFXU\OHDGFDGPLXP 0DWHULDO6HOHFWLRQ 5HIHUHQFHV ³%XLOGLQJ&RQVWUXFWLRQDQG0DLQWHQDQFH3URGXFWV&RQWDLQLQJ3HUVLVWHQW %LRDFFXPXODWLYH7R[LF&KHPLFDOV3%7V´,1)2501HZ<RUN ³%XLOGLQJ*UHHQFRP´%XLOGLQJ*UHHQ,QFKWWSZZZ EXLOGLQJJUHHQFRP ³'5$)7)HGHUDO*XLGHWR*UHHQ&RQVWUXFWLRQ´(QYLURQPHQWDO 3URWHFWLRQ$JHQF\ ³)LQDO*XLGDQFHRQ(QYLURQPHQWDOO\3UHIHUDEOH3XUFKDVLQJIRU([HFXWLYH $JHQFLHV´(QYLURQPHQWDO3URWHFWLRQ$JHQF\ ³*UHHQ+HDOWKFDUH&RQVWUXFWLRQ&DVH6WXGLHV´+HDOWK\%XLOGLQJ 1HWZRUNKWWSZZZKHDOWK\EXLOGLQJQHWKHDOWKFDUH*UHHQB+HDOWKFDUHB &DVHB6WXGLHVSGI +VLQ5*XLGHOLQHVDQG3ULQFLSOHVIRU6XVWDLQDEOH&RPPXQLW\ 'HVLJQ6FKRRORI$UFKLWHFWXUH)ORULGD$08QLYHUVLW\KWWSVXVWDLQDEOH VWDWHÀXVIGLHGHVLJQQHZVWKHVLVDUFKKWP *UHHQ%XLOGLQJ3URMHFW3ODQQLQJDQG&RVW(VWLPDWLQJ.LQJVWRQ 0$560HDQV 0HQGOHU6DQG:2GHOO7KH+2.*XLGHERRNWR6XVWDLQDEOH 'HVLJQ1HZ<RUN-RKQ:LOH\DQG6RQV,QF 1DGDY$:D0*UHHQVSHF'LUHFWRU\3URGXFW'LUHFWRU\ZLWK *XLGHOLQH6SHFL¿FDWLRQV%UDWWOHERUR97%XLOGLQJ*UHHQ,QF ³$7HFKQLFDO0DQXDOIRU0DWHULDO&KRLFHVLQ6XVWDLQDEOH&RQVWUXFWLRQ´ 6WDWHRI&DOLIRUQLD,QWHJUDWHG:DVWH0DQDJHPHQW%RDUG 6DFUDPHQWR&$ ³:KROH%XLOGLQJ'HVLJQ*XLGH´1DWLRQDO,QVWLWXWHRI%XLOGLQJ6FLHQFHV KWWSZZZZEGJRUJLQGH[SKS 0DWHULDO6HOHFWLRQ &KDSWHU0DWHULDO6HOHFWLRQ 3ODQQLQJ *RDO7RHGXFDWHDQGIDPLOLDUL]HLQGLYLGXDOVWRHQYLURQPHQWDOO\ IULHQGO\PDWHULDOVDVZHOODVWKRVHZKLFKFDXVHWKHPRVWKDUPWRRXU HQYLURQPHQW %HQH¿WV x x x 5HGXFHSROOXWDQWVDQGUHVRXUFHVFRQVXPHGIURPPDWHULDO SURGXFWLRQE\SXUFKDVLQJSUHIHUDEOHPDWHULDOV 5HGXFHIXHODQGWUDQVSRUWDWLRQFRVWV 5HGXFHVROLGZDVWHSUREOHPVFXWHQHUJ\FRQVXPSWLRQLQ PDQXIDFWXULQJDQGVDYHRQQDWXUDOUHVRXUFHXVH 6XVWDLQDEOH0DWHULDOVDUH« x x x x x x 5HXVHGRUVDOYDJHGPDWHULDOV +LJKUHF\FOHGFRQWHQW 5DSLGO\UHQHZDEOH %LRGHJUDGDEOH 5HXVDEOHPDWHULDOV /RFDOO\PDQXIDFWXUHG 0DWHULDOVWR$YRLG x x &)&¶VDQG+&)&¶V$YRLGR]RQHGHSOHWLQJFKHPLFDOVLQ PHFKDQLFDOHTXLSPHQWDQGLQVXODWLRQPDGHRI&)&VDQG +&)&¶V5HFODLP&)&VZKHQVHUYLFLQJRUGLVSRVLQJRI HTXLSPHQW 92&V9RODWLOH2UJDQLF&RPSRXQGVIRXQGLQSDLQWVDQG FRDWLQJVDGKHVLYHVDQGVHDODQWVFDUSHWDQGFRPSRVLWHZRRG 39& :RRGWUHDWHGZLWK&RSSHU&KURPLXP$UVHQDWH&&$ x 8UHDIRUPDOGHK\GH x 3%7V3HUVLVWHQW%LRDFFXPXODWLYH7R[LF&KHPLFDOV7KHVHFDQ 0DWHULDO6HOHFWLRQ x x EHIRXQGLQSURGXFWVVXFKDVSDLQWVYDUQLVKHVFDXONVHOHFWULFDO VZLWFKHVDQGWKHUPRVWDWVÀXRUHVFHQWEXOEVVROGHUVYLQ\O 0HWKRGVWRHGXFDWHWKHSURMHFWWHDP x x x x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³%XLOGLQJ&RQVWUXFWLRQDQG0DLQWHQDQFH3URGXFWV&RQWDLQLQJ3HUVLVWHQW %LRDFFXPXODWLYH7R[LF&KHPLFDOV3%7V´,1)2501HZ<RUN ³%XLOGLQJ*UHHQFRP´&6,'LYLVLRQV%XLOGLQJ*UHHQ,QFKWWS ZZZEXLOGLQJJUHHQFRP ³*UHHQ+HDOWKFDUH&RQVWUXFWLRQ&DVH6WXGLHV´+HDOWK\%XLOGLQJ 1HWZRUNKWWSZZZKHDOWK\EXLOGLQJQHWKHDOWKFDUH*UHHQB+HDOWKFDUHB &DVHB6WXGLHVSGI 0HQGOHU6DQG:2GHOO7KH+2.*XLGHERRNWR6XVWDLQDEOH 'HVLJQ1HZ<RUN-RKQ:LOH\DQG6RQV,QF 6XVWDLQDEOH0DWHULDO3URGXFW(YDOXDWLRQ3ROLF\3HQWDJRQ 5HQRYDWLRQ3URJUDP303 ³$7HFKQLFDO0DQXDOIRU0DWHULDO&KRLFHVLQ6XVWDLQDEOH&RQVWUXFWLRQ´ 6WDWHRI&DOLIRUQLD,QWHJUDWHG:DVWH0DQDJHPHQW%RDUG 6DFUDPHQWR&$ 0DWHULDO6HOHFWLRQ &KDSWHU0DWHULDO6HOHFWLRQ 'HPROLWLRQDQG$EDWHPHQW *RDO7RHGXFDWHDQGIDPLOLDUL]HLQGLYLGXDOVWRHQYLURQPHQWDOO\ IULHQGO\PDWHULDOVDVZHOODVWKRVHZKLFKFDXVHWKHPRVWKDUPWRRXU HQYLURQPHQW 6XVWDLQDEOH0DWHULDOV 7HPSRUDU\%DUULHUV(QFORVXUHV x 8VHUHF\FOHGUXEEHUDQGSODVWLFPDWHULDOVIRUWHPSRUDU\EDUULHUV x $)UDPH%DUULFDGHV 6DOYDJHG0DWHULDOVUHIHUHQFHFKDSWHU x 5HXVHZRRGRIKLJKTXDOLW\LQFOXGLQJZRRGIRUPHUO\XVHG VWUXFWXUDOO\RULQVXEÀRRULQJE\JHWWLQJLWUHPLOOHGIRU¿QLVK FDUSHQWU\ 3DLQW5HPRYHUV x /RZ92&QRQWR[LFELRGHJUDGDEOHSURGXFWV 5HIHUHQFHV ³&HQWHUIRU5HVRXUFHIXO%XLOGLQJ7HFKQRORJ\´1DWLRQDO&HQWHUIRU $SSURSULDWH7HFKQRORJ\KWWSZZZFUEWRUJLQGH[KWPO 0DOLQ$:D1*UHHQVSHF'LUHFWRU\0RQWSHOLHU97'DQ :RRGEXU\ 0HQGOHU6DQG:2GHOO7KH+2.*XLGHERRNWR6XVWDLQDEOH 'HVLJQ1HZ<RUN-RKQ:LOH\DQG6RQV,QF 0DWHULDO6HOHFWLRQ &KDSWHU0DWHULDO6HOHFWLRQ 6LWH:RUN *RDO7RHGXFDWHDQGIDPLOLDUL]HLQGLYLGXDOVWRHQYLURQPHQWDOO\ IULHQGO\PDWHULDOVDVZHOODVWKRVHZKLFKFDXVHWKHPRVWKDUPWRRXU HQYLURQPHQW 6XVWDLQDEOH0DWHULDOV 6XEVXUIDFH)RXQGDWLRQ'UDLQDJH x 8VHJHRWH[WLOHSURGXFWVPDQXIDFWXUHGIURPUHF\FOHGSODVWLF x 8VHRQVLWHFUXVKHGURFNRUUHF\FOHGFRQWHQW (URVLRQDQG6HGLPHQWDWLRQ&RQWURO x 8VHQDWXUDO¿EHUJHRWH[WLOHVFDSWXULQJWKHEHQH¿WVRI ELRGHJUDGDELOLW\RQFHYHJHWDWLRQLVHVWDEOLVKHG x &HOOXORVHK\GURPXOFKLQJXWLOL]LQJUHF\FOHGQHZVSDSHUFRQWHQW 8WLOLW\3ROHV x )6&FHUWL¿HGZRRGVRXUFHVVDIHUSUHVHUYDWLYHVDQGUHF\FOHG FRQWHQW x &HUWL¿HG8WLOLW\3ROHV 6WRUP'UDLQDJH3LSLQJ x +LJKUHF\FOHGFRQWHQWSLSLQJ 2XWGRRU$WKOHWLF3OD\6XUIDFHV x *UDQXODWHGUXEEHUIURPUHF\FOHGWLUHVRIIHUVDQDSSURSULDWH VXUIDFLQJPDWHULDO 8QLW3DYHUV x 3DYHUVPDGHIURPUHF\FOHGRUVDOYDJHGPDWHULDOVVXFKDV FREEOHVWRQHRUEULFNRUSURGXFWVPDGHZLWKRLOFRQWDPLQDWHG VRLOVÀ\DVKRURWKHULQGXVWULDOZDVWH 3DYHPHQW x x 3RURXVDVSKDOWSDYLQJDQGFRQFUHWHSDYLQJZLWKUHF\FOHGFRQWHQW SRVWFRQVXPHUUHF\FOHG+'3(SODVWLFLGHDOIRUSDUNLQJORWV GULYHZD\VDQGURDGVWKDWZLOOQRWFDUU\YHKLFOHVWUDYHOLQJDWKLJK UDWHVRIVSHHG 8VH3RUWODQGFHPHQWFRQFUHWHZLWKÀ\DVKWKDWKDVOHVV 0DWHULDO6HOHFWLRQ HPERGLHGHQHUJ\DQGUHGXFHVZDWHUSHUPHDELOLW\ x 8VH5XEEHU0RGL¿HG$VSKDOW50$ZLWKDFUXPEUXEEHUFRQWHQW QRJUHDWHUWKDQ :DON5RDGDQG3DUNLQJ$SSXUWHQDQFHV x 5HF\FOHGSODVWLFVIRUURDGZD\PDUNHUVVSHHGEXPSVSDUNLQJ VWRSVDQGWUDI¿FVLJQV 6LWH)XUQLVKLQJV x )RUWUDVKUHFHSWDFOHVEHQFKHVWDEOHVDQGELNHUDFNVXVH UHF\FOHGFRQWHQWPDWHULDOPDGHIURP+'3(RUFRPLQJOHG SODVWLF x 3ODVWLFRUFHUWL¿HGOXPEHUWKDWFDQEHXVHGLQEHQFKHVWDEOHV FKDLUVWUDVKFDQVHWFLVDQRSWLRQIRUODQGVFDSHIXUQLVKLQJV 3ODQWLQJV x 8VHQRQWR[LFZDVWHPDWHULDOVLQODQGVFDSLQJDSSOLFDWLRQVVXFK DVEULFNQXJJHWVDE\SURGXFWRIEULFNPDQXIDFWXULQJ x :KHQLUULJDWLRQLVUHTXLUHGXVHGULSRUEXEEOHUV\VWHPVDQG XWLOL]HUDLQVHQVRURYHUULGHV x 8VHVRDNHUKRVHVPDGHIURPUHF\FOHGUXEEHU x 8VHSODQWVQDWLYHWRWKHUHJLRQ x 8VHELRVROLGVDQGVOXGJHIURPZDVWHZDWHUWUHDWPHQWIDFLOLWLHV 0DWHULDOVWR$YRLG (URVLRQDQG6HGLPHQWDWLRQ&RQWURO x 3RO\PHUEDVHGSURGXFWV /DQGVFDSH7LPEHUV x :RRGWUHDWHGZLWKFRSSHUFKURPLXPDUVHQDWH&&$ 3ODQWLQJV x +LJKSUHVVXUHPLVWLQJVSULQNOHUV 0DWHULDO6HOHFWLRQ 3(15(1&3UDFWLFH 3HQWDJRQ3DUNLQJ/RWDQG$FFHVV5RDGUHSDLUV 3URMHFW'HVFULSWLRQ,Q'06,QFZDVDZDUGHGD¿YH\HDU PLOOLRQSHU\HDU'2'FRQWUDFWWRPDLQWDLQDQGUHSDLUSDUNLQJORWVDQG DFFHVVURDGVDWWKH3HQWDJRQDQGWKUHHRWKHUIDFLOLWLHV &RQWUDFW,QFHQWLYH$DOORZDEOHSULFHGLIIHUHQWLDOIRUWKHXVHRI RSWLRQDOSURGXFWVZLWKVSHFL¿HGHQYLURQPHQWDODWWULEXWHV 5HVXOW7RWDOFRVWRIWKHFRQWUDFWLQFOXGLQJLQFHQWLYHSD\PHQWVZDV VLJQL¿FDQWO\ORZHUWKDQWKDWRIFRPSDUDEOHSDUNLQJORWUHSDLUSURMHFWV 0DWHULDOVXVHGDVRI$XJXVWLQFOXGHG x WRQVRIUHF\FOHGDVSKDOW x WRQVRIUHF\FOHGFRQFUHWH x FXELF\DUGVRIFRQFUHWHFRQWDLQLQJUHFRYHUHGPDWHULDOV x OLQHDUIHHWRIORZ92&SDLQWJO x IWRIORZ92&FRQFUHWHFXULQJFRPSRXQG 5HIHUHQFHV 0DOLQ$:D1*UHHQVSHF'LUHFWRU\0RQWSHOLHU97'DQ :RRGEXU\ ³0DWUL[2YHUYLHZRI5HF\FOHG&RQWHQW/HYHOVDQG3URGXFW$YDLODELOLW\´ ,QWHJUDWHG:DVWH0DQDJHPHQW%RDUGKWWSZZZFLZPEFDJRY *UHHQ%XLOGLQJ0DWHULDOV0DWUL[KWP'LYLVLRQ 0F1DOO\0³6XVWDLQDEOH&RQVWUXFWLRQ´8QLYHUVLW\RI)ORULGD KWWSHVVJHRORJ\XÀHGXHVV/DEV7HUP3DSHUV)DOO0F1DOO\VXVWDL QDEOHFRQFWUXFWLRQKWPO 0HQGOHU6DQG:2GHOO7KH+2.*XLGHERRNWR6XVWDLQDEOH 'HVLJQ1HZ<RUN-RKQ:LOH\DQG6RQV,QF 0DWHULDO6HOHFWLRQ &KDSWHU0DWHULDO6HOHFWLRQ )RXQGDWLRQV *RDO7RHGXFDWHDQGIDPLOLDUL]HLQGLYLGXDOVWRHQYLURQPHQWDOO\ IULHQGO\PDWHULDOVDVZHOODVWKRVHZKLFKFDXVHWKHPRVWKDUPWRRXU HQYLURQPHQW 6XVWDLQDEOH0DWHULDOV )RUPZRUN x %LRGHJUDGDEOHIRUPUHOHDVLQJDJHQWV x 7XEHIRUPZRUNPDGHIURPUHF\FOHGSDSHUW\SLFDOO\XVHGIRU VWDLUVWKHVHIRUPVFDQEHXWLOL]HGRQDOOVLWHV x &HUWDLQWXEHIRUPZRUNPDQXIDFWXUHUVRIIHUUHF\FOHGSDSHUERDUG IRUPVDYDLODEOHIURP´´LQGLDPHWHU x ,QVXODWLQJ&RQFUHWH)RUPV,&)LQSHUPDQHQWIRUPDSSOLFDWLRQV x ([SDQGHGSRO\VW\UHQHSHUPDQHQWIRUPZRUN 5HLQIRUFLQJ%DUV x 5HF\FOHGSODVWLFUHEDUVXSSRUWV x +LJKUHF\FOHGVWHHOFRQWHQWLVDYDLODEOHLQUHLQIRUFLQJEDUVRU VFUDSEDUV&HUWDLQSURGXFWVXWLOL]HUHF\FOHGHQJLQHHULQJ JUDGHSODVWLF &RQFUHWH x &RDOÀ\DVKFDQEHXVHGDVDVXEVWLWXWHIRUXSWRRIWKH 3RUWODQGFHPHQWLQDFRQFUHWHPL[GHSHQGHQWXSRQDSSOLFDWLRQ x /RZ92&DQGELREDVHGFRQFUHWHFXULQJFRPSRXQGV x 0RUWDUVZLWKKLJKÀ\DVKFRQWHQWDUHHIIHFWLYHZKHQSHUIRUPLQJ UHKDELOLWDWLRQVWRFRQFUHWH x %LRGHJUDGDEOHDQGELREDVHGFRQFUHWHFOHDQLQJDJHQWVDUH DYDLODEOH x ,QGXVWULDOZDVWHPDWHULDOVFRDOZDVWHDQGRUSDOOHWL]HGEODVW IXUQDFHVODJFDQEHXVHGDVOLJKWZHLJKWDJJUHJDWHVWRUHSODFH VDQGLQPRUWDU 0DWHULDO6HOHFWLRQ 0LVFHOODQHRXV x 5HF\FOHGQHZVSDSHURUZDVWHDJULFXOWXUHPDWHULDOVFDQEHXVHG LQH[SDQVLRQMRLQW¿OOHUV x )RXQGDWLRQDQFKRUV\VWHPVDUHDYDLODEOHWKDWGRQRWUHTXLUH H[FDYDWLRQ 0DWHULDOVWR$YRLG )RUPZRUN x 3HWUROHXPEDVHGIRUPUHOHDVLQJDJHQWV &RQFUHWH x +LJK3RUWODQGFHPHQWFRQWHQW 5HIHUHQFHV 0DOLQ$:D1*UHHQVSHF'LUHFWRU\0RQWSHOLHU97'DQ :RRGEXU\ ³0DWUL[2YHUYLHZRI5HF\FOHG&RQWHQW/HYHOVDQG3URGXFW$YDLODELOLW\´ ,QWHJUDWHG:DVWH0DQDJHPHQW%RDUGKWWSZZZFLZPEFDJRY *UHHQ%XLOGLQJ0DWHULDOV0DWUL[KWP'LYLVLRQ 0HQGOHU6DQG:2GHOO7KH+2.*XLGHERRNWR6XVWDLQDEOH 'HVLJQ1HZ<RUN-RKQ:LOH\DQG6RQV,QF 0DWHULDO6HOHFWLRQ &KDSWHU0DWHULDO6HOHFWLRQ 6XEVWUXFWXUH *RDO7RHGXFDWHDQGIDPLOLDUL]HLQGLYLGXDOVWRHQYLURQPHQWDOO\ IULHQGO\PDWHULDOVDVZHOODVWKRVHZKLFKFDXVHWKHPRVWKDUPWRRXU HQYLURQPHQW 6XVWDLQDEOH0DWHULDOV )RUPZRUN x %LRGHJUDGDEOHIRUPUHOHDVLQJDJHQWV x 7XEHIRUPZRUNPDGHIURPUHF\FOHGSDSHUW\SLFDOO\XVHGIRU VWDLUV7KHVHIRUPVFDQEHXWLOL]HGRQDOOVLWHV x &HUWDLQWXEHIRUPZRUNPDQXIDFWXUHUVRIIHUUHF\FOHGSDSHUERDUG IRUPVDYDLODEOHIURP´´LQGLDPHWHU x ,QVXODWLQJ&RQFUHWH)RUPV,&)LQSHUPDQHQWIRUPDSSOLFDWLRQV x ([SDQGHGSRO\VW\UHQHSHUPDQHQWIRUPZRUN 5HLQIRUFLQJ%DUV x 5HF\FOHGSODVWLFUHEDUVXSSRUWV x +LJKUHF\FOHGVWHHOFRQWHQWLVDYDLODEOHLQUHLQIRUFLQJEDUVRU VFUDSEDUV&HUWDLQSURGXFWVXWLOL]HUHF\FOHGHQJLQHHULQJ JUDGHSODVWLF &RQFUHWH x &RDOÀ\DVKFDQEHXVHGDVDVXEVWLWXWHIRUXSWRRIWKH 3RUWODQGFHPHQWLQDFRQFUHWHPL[GHSHQGHQWXSRQDSSOLFDWLRQ x /RZ92&DQGELREDVHGFRQFUHWHFXULQJFRPSRXQGV x 0RUWDUVZLWKKLJKÀ\DVKFRQWHQWDUHHIIHFWLYHZKHQSHUIRUPLQJ UHKDELOLWDWLRQVWRFRQFUHWH x %LRGHJUDGDEOHDQGELREDVHGFRQFUHWHFOHDQLQJDJHQWVDUH DYDLODEOH x ,QGXVWULDOZDVWHPDWHULDOVFRDOZDVWHDQGRUSDOOHWL]HGEODVW IXUQDFHVODJFDQEHXVHGDVOLJKWZHLJKWDJJUHJDWHVWRUHSODFH VDQGLQPRUWDU 0DWHULDO6HOHFWLRQ 'DPSSURR¿QJ:DWHUSURR¿QJ x 8VHH[SDQGHGSRO\VW\UHQH(36LQOLHXRI+&)&¶V+LJK GHQVLW\(36LVDFFHSWDEOHIRUPDQ\ZDWHULPSHUPHDELOLW\ DSSOLFDWLRQV $GKHVLYHV6HDODQWV x :DWHUEDVHGDGKHVLYHVDUHDYDLODEOHWKDWFRQWDLQ]HUR92&V DQGDUHVXLWDEOHIRUSRURXVDQGQRQSRURXVVXUIDFHV x /RZ92&ZDWHUEDVHGVLOLFRQHVHDODQWV 0LVFHOODQHRXV x 5HF\FOHGQHZVSDSHURUZDVWHDJULFXOWXUHPDWHULDOVFDQEHXVHG LQH[SDQVLRQMRLQW¿OOHUV x )RXQGDWLRQDQFKRUV\VWHPVDUHDYDLODEOHWKDWGRQRWUHTXLUH H[FDYDWLRQ 0DWHULDOVWR$YRLG )RUPZRUN x 3HWUROHXPEDVHGIRUPUHOHDVLQJDJHQWV &RQFUHWH x +LJK3RUWODQGFHPHQWFRQWHQW 5HIHUHQFHV 0DOLQ$:D1*UHHQVSHF'LUHFWRU\0RQWSHOLHU97'DQ :RRGEXU\ 0HQGOHU6DQG:2GHOO7KH+2.*XLGHERRNWR6XVWDLQDEOH 'HVLJQ1HZ<RUN-RKQ:LOH\DQG6RQV,QF %RUFKHUV06D0³6XVWDLQDEOH%XLOGLQJ,QIRUPDWLRQ´ 6XVWDLQDEOH/LYLQJ&HQWUHKWWSZZZVXVWDLQDEOHFR]DEXLOGLQIRKWPO 0DWHULDO6HOHFWLRQ &KDSWHU0DWHULDO6HOHFWLRQ 6XSHUVWUXFWXUH *RDO7RHGXFDWHDQGIDPLOLDUL]HLQGLYLGXDOVWRHQYLURQPHQWDOO\ IULHQGO\PDWHULDOVDVZHOODVWKRVHZKLFKFDXVHWKHPRVWKDUPWRRXU HQYLURQPHQW 6XVWDLQDEOH0DWHULDOV 6WUXFWXUDO6WHHO x 2YHUDOOWKHVWHHOLQGXVWU\¶VUHF\FOLQJUDWHLVRYHU&DSLWDOL]H E\XWLOL]LQJKLJKUHF\FOHGVWHHOFRQWHQWLQ\RXUVXSHUVWUXFWXUH x 6HDUFKIRUHQYLURQPHQWDOO\IULHQGO\SULPHUVSULPHUVH[LVWWKDW FRQWDLQQRKD]DUGRXVPDWHULDOVDQGKDYHDORZ92&FRQWHQW x *LYHSUHIHUHQFHWRIDFWRU\¿QLVKLQJUDWKHUWKDQVLWH¿QLVKLQJ x &RQVLGHUPHWDO¿QLVKLQJEDVHGRQSK\VLFDOSURFHVVHVVXFKDV DEUDVLYHEODVWLQJJULQGLQJEXI¿QJDQGSROLVKLQJUDWKHUWKDQ PXOWLSOHFRDWLQJV &RQFUHWH x 8VHFRDOÀ\DVKDVDVXEVWLWXWHIRUXSWRRIWKH3RUWODQG FHPHQWLQDFRQFUHWHPL[GHSHQGHQWXSRQDSSOLFDWLRQ x /RZ92&DQGELREDVHGFRQFUHWHFXULQJFRPSRXQGV 0DWHULDOVWR$YRLG 6WUXFWXUDO6WHHO x /HDGEDVHGRUKLJK92&SDLQWVUXVWLQKLELWRUVDQGRWKHU FRDWLQJV x 3ODWHGPHWDOVWKDWXVHFDGPLXPDQGRUFKURPLXPSODWLQJ PDWHULDOV x &\DQLGHDQGRUFRSSHUIRUPDOGHK\GHFRSSHUSODWLQJVROXWLRQV 0DWHULDO6HOHFWLRQ 3(15(1&3UDFWLFH 6XVWDLQDEOH0DWHULDOV8VHGRQ:HGJH3KDVHV,,, 0DWHULDODQGWKHLUUHVSHFWLYHUHXVHGFRQWHQW x 8QLWPDVRQU\SRVWLQGXVWULDO x 6WUXFWXUDOVWHHOSRVWFRQVXPHUSRVWLQGXVWULDO x &RQFUHWHUHLQIRUFHPHQWSRVWFRQVXPHUSRVW LQGXVWULDO x &DVWLQSODFHFRQFUHWHSRVWLQGXVWULDO 5HIHUHQFHV 0DOLQ$:D1*UHHQVSHF'LUHFWRU\0RQWSHOLHU97'DQ :RRGEXU\ 0HQGOHU6DQG:2GHOO7KH+2.*XLGHERRNWR6XVWDLQDEOH 'HVLJQ1HZ<RUN-RKQ:LOH\DQG6RQV,QF 0DWHULDO6HOHFWLRQ &KDSWHU0DWHULDO6HOHFWLRQ ([WHULRU&ORVXUH *RDO7RHGXFDWHDQGIDPLOLDUL]HLQGLYLGXDOVWRHQYLURQPHQWDOO\ IULHQGO\PDWHULDOVDVZHOODVWKRVHZKLFKFDXVHWKHPRVWKDUPWRRXU HQYLURQPHQW 6XVWDLQDEOH0DWHULDOV )UDPLQJ x +HDY\JDXJHVWUXFWXUDOVWHHOIUDPLQJFRPPRQO\KDV UHF\FOHGFRQWHQW x /RRNIRUKLJKUHF\FOHGFRQWHQWLQVWHHOIDVWHQHUV 0DVRQU\ x +LJKÀ\DVKFRQWHQWPRUWDUV x +LJKUHF\FOHGFRQWHQWZHHSYHQWV x +LJKUHF\FOHGFRQWHQWDJJUHJDWH x %ULFNIURPRLOFRQWDPLQDWHGVRLOV x $GREHSUHVVHGVRLOFHPHQWRURWKHUQDWXUDOORZHPERGLHG HQHUJ\PDVRQU\WHFKQRORJLHV 3O\ZRRG )RUPDOGHK\GHIUHHSDUWLFOHERDUGDQGSO\ZRRG x 3UHVVXUHWUHDWHGOXPEHUQRWFRQWDLQLQJ&&$¶VDOWHUQDWLYHV LQFOXGHFRSSHUEDVHGQRQDUVHQLFQRQFKURPLXPRUDONDOLQH FRSSHUDQGTXDWHUQDU\DPPRQLXPFRPSRXQGV$&4RUERURQ EDVHGZRRGWUHDWPHQW x ,QGHSHQGHQWO\FHUWL¿HGVXVWDLQDEO\KDUYHVWHGZRRG6FLHQWL¿F &HUWL¿FDWLRQ6\VWHPV6&66PDUWZRRG3URJUDPRIWKH 5DLQIRUHVW$OOLDQFH)RUHVW6WHZDUGVKLS&RXQFLO)6& 'DPSSURR¿QJ:DWHUSURR¿QJ x ([SDQGHGSRO\VW\UHQH(36LQOLHXRI+&)&¶V+LJKGHQVLW\ (36LVDFFHSWDEOHIRUPDQ\ZDWHULPSHUPHDELOLW\DSSOLFDWLRQV $GKHVLYHV6HDODQWV x :DWHUEDVHGDGKHVLYHVDUHDYDLODEOHWKDWFRQWDLQ]HUR92&V DQGDUHVXLWDEOHIRUSRURXVDQGQRQSRURXVVXUIDFHV x /RZ92&ZDWHUEDVHGVLOLFRQHVHDODQWV 0DWHULDO6HOHFWLRQ x ,QVXODWLRQ x )RDPLQVXODWLRQVKRXOGEHXWLOL]HGWRFRPEDWWKHSUREOHPRI WKHUPDOEULGJLQJ3UHIHUUHGLQVXODWLRQPDWHULDOVDUHPLQHUDOZRRO LQVXODWLRQFRWWRQLQVXODWLRQDQGFHOOXORVHLQVXODWLRQ x 6SHFLDOVWHHOV\VWHPVDUHDOVRGHVLJQHGWRFRPEDWWKHUPDO EULGJLQJ x ([SDQGHGSRO\VW\UHQH(36IRDPIRUULJLGIRDPERDUG DSSOLFDWLRQV x &HOOXORVHLQVXODWLRQPDGHIURPWRUHF\FOHGQHZVSULQW 0DWHULDOVWR$YRLG :RRG0LOOZRUN x )RUPDOGHK\GHWUHDWHGSDUWLFOHERDUGDQGSO\ZRRG x /XPEHUSUHVVXUHWUHDWHGZLWKFKURPDWHFRSSHUDUVHQDWH&&$ 'DPSSURR¿QJ:DWHUSURR¿QJ x +LJK92&FRQWDLQLQJDVSKDOWEDVHGFRDWLQJV ,QVXODWLRQ x )LEHUJODVVLQVXODWLRQWKDWFRQWDLQVSKHQROIRUPDOGHK\GHELQGHUV x %ORZQVSUD\DSSOLHGLQVXODWLRQXVLQJ&)&¶VRU+&)&¶V x ([WUXGHGSRO\VW\UHQH;36ULJLGERDUGLQVXODWLRQ $GKHVLYHV6HDODQWV x &DXONVRUVHDODQWVWKDWFRQWDLQPHUFXU\3%7 5HIHUHQFHV ³%XLOGLQJ&RQVWUXFWLRQDQG0DLQWHQDQFH3URGXFWV&RQWDLQLQJ3HUVLVWHQW %LRDFFXPXODWLYH7R[LF&KHPLFDOV3%7V´,1)2501HZ<RUN 0DOLQ$:D1*UHHQVSHF'LUHFWRU\0RQWSHOLHU97'DQ :RRGEXU\ 0HQGOHU6DQG:2GHOO7KH+2.*XLGHERRNWR6XVWDLQDEOH 'HVLJQ1HZ<RUN-RKQ:LOH\DQG6RQV,QF 0DWHULDO6HOHFWLRQ &KDSWHU0DWHULDO6HOHFWLRQ 5RR¿QJ *RDO7RHGXFDWHDQGIDPLOLDUL]HLQGLYLGXDOVWRHQYLURQPHQWDOO\ IULHQGO\PDWHULDOVDVZHOODVWKRVHZKLFKFDXVHWKHPRVWKDUPWRRXU HQYLURQPHQW 6XVWDLQDEOH0DWHULDOV *UHHQ5RRIV x /LYLQJJUHHQURRIVV\VWHPVDUHYHJHWDWHGURRIV\VWHPVWKDWFDQ VLJQL¿FDQWO\UHGXFHKHDWLQJDQGFRROLQJFRVWV 0HWDO5RRIV x 0HWDOURRIPDWHULDOVFRQWDLQLQJKLJKSHUFHQWDJHVRIUHF\FOHG FRQWHQWRIXSWRRIVWHHODQGDOXPLQXP0HWDOVKLQJOHV FDQDOVREHFRQVLGHUHGIRUKLJKVORSHURR¿QJDSSOLFDWLRQV 3KRWRYROWDLF x 3KRWRYROWDLFURR¿QJV\VWHPVHQDEOHVXVWDLQDEOHHQHUJ\ SURGXFWLRQ x 5HÀHFWLYHURR¿QJWHFKQRORJLHVKHOSWRPLWLJDWHWKHXUEDQKHDW LVODQGHIIHFW 6KLQJOHV x 3ODVWLFVKLQJOHVPDGHIURPUHF\FOHGFRQWHQWUHVHPEOLQJVODWH VKLQJOHVSURYLGHFUDGOHWRFUDGOHEHQH¿WV x 1DWXUDOVODWHVKLQJOHVDUHH[FHOOHQWIURPDQHQYLURQPHQWDO VWDQGSRLQW x :RRGVKLQJOHVPDGHIURPFHUWL¿HGZRRGVDUHDYDLODEOH x &OD\URRIWLOHVDUHPDGHIURPDEXQGDQWUDZPDWHULDOVDQGFDUU\ HIIHFWLYHKHDWJDLQFKDUDFWHULVWLFV 7KHUPRSODVWLF5RR¿QJ0HPEUDQH x &RQVLGHUXVLQJURR¿QJPHPEUDQHVFRQWDLQLQJWKHUPRSODVWLF ROH¿QV732LQOLHXRI39&¶V 0DWHULDO6HOHFWLRQ 0DWHULDOVWR$YRLG x x x x $VSKDOWVKLQJOHVFUHDWHDODUJHSRUWLRQRIDGHPROLWLRQSURMHFW¶V ZDVWH +LJK92&FRQWDLQLQJFDXONLQJDQGVHDODQWV ,QVXODWLRQSURGXFWVPDQXIDFWXUHGXVLQJ&)&¶VRU+&)&¶V &DXONVRUVHDODQWVWKDWFRQWDLQ0HUFXU\3%7 5HIHUHQFHV ³%XLOGLQJ&RQVWUXFWLRQDQG0DLQWHQDQFH3URGXFWV&RQWDLQLQJ3HUVLVWHQW %LRDFFXPXODWLYH7R[LF&KHPLFDOV3%7V´,1)2501HZ<RUN ³&DVH6WXGLHV´*UHHQURRIFRPKWWSZZZJUHHQURRIVFRP QRUWKBDPHULFDQKWP 0DOLQ$:D1*UHHQVSHF'LUHFWRU\0RQWSHOLHU97'DQ :RRGEXU\ 0HQGOHU6DQG:2GHOO7KH+2.*XLGHERRNWR6XVWDLQDEOH 'HVLJQ1HZ<RUN-RKQ:LOH\DQG6RQV,QF 0DWHULDO6HOHFWLRQ &KDSWHU0DWHULDO6HOHFWLRQ ,QWHULRU&RQVWUXFWLRQ *RDO7RHGXFDWHDQGIDPLOLDUL]HLQGLYLGXDOVWRHQYLURQPHQWDOO\ IULHQGO\PDWHULDOVDVZHOODVWKRVHZKLFKFDXVHWKHPRVWKDUPWRRXU HQYLURQPHQW 6XVWDLQDEOH0DWHULDOV 3DUWLWLRQV x &ROGUROOHGVWHHOIUDPLQJW\SLFDOO\FRQWDLQVUHF\FOHG PDWHULDO0D[LPL]HUHF\FOHGFRQWHQWZKHQSXUFKDVLQJLQWHULRU VWXGIUDPLQJ x UHF\FOHGFHOOXORVHEXLOGLQJLQVXODWLRQPDNHVHI¿FLHQWXVH RIH[LVWLQJIHHGVWRFNDQGKHOSVFUHDWHDPDUNHWIRUUHF\FOHG QHZVSDSHU x 8VHKROORZPHWDOGRRUVDQGIUDPHVIURPUHF\FOHGPHWDOFRQWHQW x &RPSRVLWHERDUGVLQFOXGLQJSDSHUDQGZRRGSDSHUEXLOGLQJ ERDUGVXVHPLOOLQJE\SURGXFWVZDVWHZRRGVUHF\FOHGSDSHU DQGRUDJULFXOWXUDOZDVWHZKHDWVWUDZERDUG $GKHVLYHV6HDODQWV x :DWHUEDVHGDGKHVLYHVDUHDYDLODEOHWKDWFRQWDLQ]HUR92&V DQGDUHVXLWDEOHIRUSRURXVDQGQRQSRURXVVXUIDFHV x /RZ92&ZDWHUEDVHGVLOLFRQHVHDODQWV :RRG0LOOZRUN x 8VHZRRGSURGXFWVFHUWL¿HGE\WKH)RUHVW6WHZDUGVKLS&RXQFLO )6&VWDQGDUGV x 5HFODLPHGZRRGOXPEHUDQGWLPEHUVVDOYDJHGIURPYDULRXV SODFHVLQFOXGLQJGHPROLVKHGEXLOGLQJV x +LJKUHF\FOHGFRQWHQWVKLPV x (QJLQHHUHGOXPEHUSURGXFWVXWLOL]LQJIDVWJURZLQJVPDOO GLDPHWHUWUHHV x x 6WUXFWXUDO,QVXODWHG3DQHOV6,3FRQVLVWLQJRI2ULHQWHG6WUDQG %RDUG26%([SDQGHGSRO\VW\UHQH(36FRUHPDWHULDOLV HQYLURQPHQWDOO\SUHIHUUHGRYHUSRO\XUHWKDQH 1DWXUDOFRUNVWUDZERDUGDQGUHF\FOHGFRQWHQW¿EHUERDUGFDQEH 0DWHULDO6HOHFWLRQ x XVHGLQÀRRULQJXQGHUOD\PHQWDSSOLFDWLRQV :RRGSODVWLFFRPSRVLWHOXPEHURIIHUVDQDOWHUQDWLYHWRDOO V\QWKHWLFZRRGPDWHULDOVZKHQQHHGHGLQVRPHVWUXFWXUDO DSSOLFDWLRQV 0DWHULDOVWR$YRLG $GKHVLYHV x 92&FRQWDLQLQJDGKHVLYHV x &DXONVRUVHDODQWVWKDWFRQWDLQ0HUFXU\3%7 :RRG0LOOZRUN x &&$3UHVVXUHWUHDWHGOXPEHU 3DUWLWLRQV x 8UHDIRUPDOGHK\GHELQGLQJUHVLQ 3(15(1&3UDFWLFH 6XVWDLQDEOH0DWHULDOVRQ:HGJH3KDVHV,,, 0DWHULDOVDQGWKHLUUHVSHFWLYHUHXVHGFRQWHQW x 0HWDOVXSSRUWDVVHPEOLHVSRVWFRQVXPHUSRVW LQGXVWULDO x 6WHHOGRRUVDQGIUDPHVSRVWFRQVXPHUSRVW LQGXVWULDO 5HIHUHQFHV ³%XLOGLQJ&RQVWUXFWLRQDQG0DLQWHQDQFH3URGXFWV&RQWDLQLQJ3HUVLVWHQW %LRDFFXPXODWLYH7R[LF&KHPLFDOV3%7V´,1)2501HZ<RUN )UHYHUW.³*UHHQ%XLOGLQJ&DVH6WXGLHV´,QWHJUDWHG :DVWH0DQDJHPHQW%RDUGKWWSZZZFLZPEFDJRY*UHHQ%XLOGLQJ &DVH6WXGLHV&RPPHUFLDO 0DOLQ$:D1*UHHQVSHF'LUHFWRU\0RQWSHOLHU97'DQ :RRGEXU\ 0HQGOHU6DQG:2GHOO7KH+2.*XLGHERRNWR6XVWDLQDEOH 'HVLJQ1HZ<RUN-RKQ:LOH\DQG6RQV,QF 0DWHULDO6HOHFWLRQ &KDSWHU0DWHULDO6HOHFWLRQ &RQYH\LQJ6\VWHPV *RDO7RHGXFDWHDQGIDPLOLDUL]HLQGLYLGXDOVWRHQYLURQPHQWDOO\ IULHQGO\PDWHULDOVDVZHOODVWKRVHZKLFKFDXVHWKHPRVWKDUPWRRXU HQYLURQPHQW 6XVWDLQDEOH0DWHULDOV (OHYDWRUV x $OWHUQDWLQJ&XUUHQW$&JHDUOHVVHOHYDWRUV7KHWHFKQRORJ\ VDYHVHOHFWULFLW\E\ORZHULQJSRZHUFRQVXPSWLRQE\DERXW SHUFHQWFRPSDUHGWRFRQYHQWLRQDO$&SRZHUHGWUDFWLRQ HOHYDWRUVSHUPDQHQWPDJQHWPRWRUVXSSOLHVWKHSRZHU x %LRGHJUDGDEOHK\GUDXOLFHOHYDWRURLOV 5HIHUHQFHV 0DOLQ$:D1*UHHQVSHF'LUHFWRU\0RQWSHOLHU97'DQ :RRGEXU\ 0HQGOHU6DQG:2GHOO7KH+2.*XLGHERRNWR6XVWDLQDEOH 'HVLJQ1HZ<RUN-RKQ:LOH\DQG6RQV,QF 0DWHULDO6HOHFWLRQ &KDSWHU0DWHULDO6HOHFWLRQ 0HFKDQLFDO *RDO7RHGXFDWHDQGIDPLOLDUL]HLQGLYLGXDOVWRHQYLURQPHQWDOO\ IULHQGO\PDWHULDOVDVZHOODVWKRVHZKLFKFDXVHWKHPRVWKDUPWRRXU HQYLURQPHQW 6XVWDLQDEOH0DWHULDOV 3OXPELQJ x +LJKUHF\FOHGFRQWHQWFDVWLURQIRUVDQLWDU\ZDVWHDQGYHQW SLSLQJ x 9LWUL¿HGFOD\SLSHVFDQEHXVHGIRUGUDLQSLSLQJWRPLQLPL]HWKH H[SHQVHRIFDVWLURQ x +LJKUHF\FOHGFRQWHQWSODVWLFSLSLQJIRUVDQLWDU\ZDVWHDQGYHQW SLSLQJ 0HFKDQLFDO x 1RQ¿EHUJODVVFRQWDLQLQJGXFWOLQHUVDUHDYDLODEOH x 8VHRQO\QRQR]RQHGHSOHWLQJUHIULJHUDQWV63( x &RQVLGHUHDVLO\FOHDQHGGXFWZRUNSURGXFWVRUWKRVHWKDWSURWHFW DJDLQVWPROG¿EHUVKHGGLQJ x 8VHGXFWPDVWLFVLQOLHXRIGXFWWDSHVWRPLQLPL]HOHDNDJH HIIHFWV 0DWHULDOVWR$YRLG x x x (OHFWULFUHVLVWDQFHZDWHUKHDWHUV 2]RQHGHSOHWLQJUHIULJHUDQWV&)&+&)& ([SRVHGLQWHUQDO¿EHUJODVVGXFWOLQHU /HDG6ROGHUV3%7 0DWHULDO6HOHFWLRQ 3OXPELQJ x 39&RU$%6SODVWLFSRVHPDQ\SRWHQWLDOKD]DUGVWRWKH HQYLURQPHQW 0HFKDQLFDO x 3(15(1&3UDFWLFH 6XVWDLQDEOH0DWHULDOVRQ:HGJH3KDVHV,,, 0DWHULDOVDQGWKHLUUHVSHFWLYHUHXVHGFRQWHQW x /RXYHUVSRVWFRQVXPHU 5HIHUHQFHV ³%XLOGLQJ&RQVWUXFWLRQDQG0DLQWHQDQFH3URGXFWV&RQWDLQLQJ3HUVLVWHQW %LRDFFXPXODWLYH7R[LF&KHPLFDOV3%7V´,1)2501HZ<RUN 0DOLQ$:D1*UHHQVSHF'LUHFWRU\0RQWSHOLHU97'DQ :RRGEXU\ 0HQGOHU6DQG:2GHOO7KH+2.*XLGHERRNWR6XVWDLQDEOH 'HVLJQ1HZ<RUN-RKQ:LOH\DQG6RQV,QF 0DWHULDO6HOHFWLRQ &KDSWHU0DWHULDO6HOHFWLRQ (OHFWULFDO *RDO7RHGXFDWHDQGIDPLOLDUL]HLQGLYLGXDOVWRHQYLURQPHQWDOO\ IULHQGO\PDWHULDOVDVZHOODVWKRVHZKLFKFDXVHWKHPRVWKDUPWRRXU HQYLURQPHQW 6XVWDLQDEOH0DWHULDOV /LJKWLQJ x 8VHRIÀXRUHVFHQWOLJKWLQJFRQVXPHVDVOLWWOHDVRQH¿IWKWKH SRZHUDQGODVWVXSWRWLPHVORQJHUWKDQLQFDQGHVFHQW¿[WXUHV x 6OLPSUR¿OHOLJKWLQJV\VWHPVFDQVDYHHQHUJ\ZLWKEHWWHUOXPHQ RXWSXWDQGDWKLQQHUODPSSURYLGLQJDKLJKO\FRQFHQWUDWHGOLJKW VRXUFHWKDWFDQHQKDQFHWKHSHUIRUPDQFHRIWKHOXPLQDULHV x (IIHFWLYHUHÀHFWRUVRQWHPSRUDU\OLJKWVDVZHOODVSHUPDQHQW OLJKWVGHFUHDVHHQHUJ\FRQVXPSWLRQ x /('H[LWVLJQ¿[WXUHVFRQVXPHOHVVHQHUJ\WKDQLQFDQGHVFHQW OLJKWVDQGRIWHQSD\EDFNWKHDGGLWLRQDO¿UVWFRVWZLWKLQRQH\HDU WKURXJKHQHUJ\VDYLQJV x 3ODVWLFHOHFWULFDOGHYLFHZDOOSODWHVPDGHRIUHF\FOHGSODVWLF FDQEHUHXVHGLIQRWGDPDJHGGXULQJUHPRYDO x 3KRWROXPLQHVFHQWVLJQDJHUHTXLUHVQREDFNXSSRZHUVXSSO\ QRFRQGXLWDQGQREDWWHU\DQGDUHDYHU\VLPSOHLQVWDOODWLRQ8/ OLVWLQJVDUHQRZDYDLODEOHZKLFKPHHWFRGHUHTXLUHPHQWV 3RZHU 3ODVWLFHOHFWULFDOGHYLFHZDOOSODWHVPDGHRIUHF\FOHGSODVWLF FDQEHUHXVHG x $LUWLJKWHOHFWULFDOER[HVPLQLPL]HDLUOHDNDJH 7HOHFRPPXQLFDWLRQV x 7HOHFRPPXQLFDWLRQVFDEOLQJZLWKXSWRUHF\FOHGSODVWLFFDQ EHUHXVHG 7UDQVIRUPHUV x %LREDVHGWUDQVIRUPHUÀXLGVDUHDYDLODEOHWKDWFDQLPSURYH HTXLSPHQWHI¿FLHQF\ x 0DWHULDO6HOHFWLRQ 0DWHULDOVWR$YRLG x x x (OHFWULFDOVZLWFKHVDQGWKHUPRVWDWVFRQWDLQLQJ0HUFXU\3%7 ([LWVLJQVZLWKÀXRUHVFHQWEXOEVFRQWDLQLQJ0HUFXU\3%7 )OXRUHVFHQWDQGFRPSDFWÀXRUHVFHQWODPSVEXOEVKLJK LQWHQVLW\GLVFKDUJH+,'ODPSVWKDWFRQWDLQ0HUFXU\3%7 3(15(1&3UDFWLFH 6XVWDLQDEOH0DWHULDOVRQ:HGJH3KDVHV,,, 0DWHULDOVDQGWKHLUUHVSHFWLYHUHXVHGFRQWHQW x 7KHHOHFWULFDOWUDQVIRUPHURLOLVDVR\EDVHGSURGXFW 5HIHUHQFHV ³%XLOGLQJ&RQVWUXFWLRQDQG0DLQWHQDQFH3URGXFWV&RQWDLQLQJ3HUVLVWHQW %LRDFFXPXODWLYH7R[LF&KHPLFDOV3%7V´,1)2501HZ<RUN 0DOLQ$:D1*UHHQVSHF'LUHFWRU\0RQWSHOLHU97'DQ :RRGEXU\ 0HQGOHU6DQG:2GHOO7KH+2.*XLGHERRNWR6XVWDLQDEOH 'HVLJQ1HZ<RUN-RKQ:LOH\DQG6RQV,QF 0DWHULDO6HOHFWLRQ &KDSWHU0DWHULDO6HOHFWLRQ (TXLSPHQW *RDO7RHGXFDWHDQGIDPLOLDUL]HLQGLYLGXDOVWRHQYLURQPHQWDOO\ IULHQGO\PDWHULDOVDVZHOODVWKRVHZKLFKFDXVHWKHPRVWKDUPWRRXU HQYLURQPHQW 6XVWDLQDEOH0DWHULDOV x x %LREDVHGWUDQVIRUPHUÀXLGVFDQLPSURYHHI¿FLHQF\HTXLSPHQW HI¿FLHQF\ 8VH³HQHUJ\VWDU´UDWHGHTXLSPHQW 3(15(1&3UDFWLFH 6XVWDLQDEOH0DWHULDOVRQ:HGJH3KDVHV,,, 0DWHULDOVDQGWKHLUUHVSHFWLYHUHXVHGFRQWHQW x 7KHHOHFWULFDOWUDQVIRUPHURLOLVDVR\EDVHGSURGXFW x $OONLWFKHQHTXLSPHQWLV(QHUJ\6WDUFRPSOLDQW 0DWHULDO6HOHFWLRQ &KDSWHU0DWHULDO6HOHFWLRQ )LQLVKHV *RDO7RHGXFDWHDQGIDPLOLDUL]HLQGLYLGXDOVWRHQYLURQPHQWDOO\ IULHQGO\PDWHULDOVDVZHOODVWKRVHZKLFKFDXVHWKHPRVWKDUPWRRXU HQYLURQPHQW 6XVWDLQDEOH0DWHULDOV 3DUWLWLRQV x *\SVXPZDOOERDUGLQFRUSRUDWHVUHF\FOHGVFUDSZDOOERDUGDQG E\SURGXFWJ\SVXPSRVWFRQVXPHUDQGSRVWLQGXVWULDO J\SVXPDUHUHDGLO\DYDLODEOH x UHF\FOHG¿EHUERDUGDQGUHF\FOHGSDUWLFOHERDUGDUH DYDLODEOH7KHVHSURGXFWVXVHUHFODLPHGZRRGRUDJULFXOWXUDO ¿EHUDVQRQVWUXFWXUDOSDQHOV x 6\QWKHWLFJ\SVXPFRQWHQWLQGU\ZDOORUJUHDWHUKHOSV SUHYHQWDJDLQVWPRLVWXUH x 3DSHUIDFHGFRPSUHVVHGVWUDZSDQHOVFDQEHXVHGDVDQ DOWHUQDWLYHIRULQWHULRUZDOOSDUWLWLRQV x 3DSHUMRLQWWDSHVKRXOGEHXVHGLQOLHXRI¿EHUJODVVWDSH x -RLQWFRPSRXQGLVDYDLODEOHZLWK]HURRUORZ92&JO FRQWHQW &HLOLQJV x &HLOLQJSDQHOVFRQVLVWLQJRIUHF\FOHGPLQHUDOZRRODQG QHZVSULQWDQGKHOSVFUHDWHDPDUNHWIRUUHF\FOHGQHZVSDSHUV x &HLOLQJWLOHVZLWKUHF\FOHGFRQWHQW x 0HWDOFHLOLQJVFRQWDLQLQJKLJKUHF\FOHGFRQWHQW 0DWHULDO6HOHFWLRQ )ORRULQJ x )ORRULQJIURPUHF\FOHGDQGUHXVDEOHPDWHULDOVVXFKDVUXEEHU JODVVDJULFXOWXUH¿EHUVDQGSODVWLFFDQODVWORQJHUDQGDUH HDVLHUWRPDLQWDLQ x &DUSHWWLOHVIURPSRVWLQGXVWULDOQ\ORQDUHDYDLODEOH7KH\DUH UHXVDEOHDQGUHF\FODEOH x &HUDPLFWLOHFRQWDLQLQJSRVWFRQVXPHURUSRVWLQGXVWULDOZDVWHLV DYDLODEOH x 5HF\FOHGJODVVWLOH x 7HUUD]]RPDWHULDOVFRQWDLQLQJUHF\FOHGFRQWHQW x 1DWXUDOOLQROHXPÀRRULQJ x 5HFODLPHGZRRGSURGXFWVVXFKDVUHPLOOHGVWUXFWXUDOWLPEHUV :DOO)LQLVKHV&RYHULQJV0LOOZRUN x 8VHODWH[SDLQWVZLWKRXW92&¶VIRULQWHULRUDQGH[WHULRUXVH x &RUNZDOOFRYHULQJV x 6HDODOOHGJHVHQGVDQGKROHVRIIRUPDOGHK\GHFRQWDLQLQJ VXEVWUDWHV 0DWHULDOVWR$YRLG )ORRULQJ x 9LQ\OÀRRULQJZLWKKLJK39&FRQWHQW x (QGDQJHUHGZRRGVSHFLHVWKH&RQYHQWLRQRQWKH,QWHUQDWLRQDO 7UDGHLQ(QGDQJHUHG6SHFLHV&,7(6SURYLGHVWKLVOLVW :DOO)LQLVKHV&RYHULQJV0LOOZRUN x 9LQ\OZDOOFRYHULQJVFRQWDLQLQJ39&DUHVLJQL¿FDQWVRXUFHVRI 92&¶V x )RUPDOGHK\GHFRQWDLQLQJSURGXFWVIRUZRRGZRUNVXEVWUDWHV x 3DLQWVDQG¿QLVKHVYDUQLVKHVÀRRUSROLVKDQGZRRGVWDLQV FRQWDLQLQJ&DGPLXP'LEXW\OSKWKDODWH3%7V 0DWHULDO6HOHFWLRQ 3(15(1&3UDFWLFH 6XVWDLQDEOH0DWHULDOVRQ:HGJH3KDVHV,,, 0DWHULDOVDQGWKHLUUHVSHFWLYHUHXVHGFRQWHQW x *\SVXPZDOOERDUGSRVWFRQVXPHUSRVWLQGXVWULDO x $FRXVWLFDOFHLOLQJSRVW,QGXVWULDO+XPLGLW\UHVLVWDQW x &HUDPLFWLOHSRVWLQGXVWULDO x 5HVLOLHQWÀRRULQJSRVWLQGXVWULDO x 7RLOHWFRPSDUWPHQWVSRVWFRQVXPHUSRVWLQGXVWULDO x 6PDUWDFDGHPLFZDOOSRVWFRQVXPHUSRVWLQGXVWULDO x 7RLOHWDFFHVVRULHVSRVWFRQVXPHU x +RUL]RQWDOEOLQGVSRVWLQGXVWULDO x 7HQDQWGRRUV6&6FHUWL¿HG x $VR\EDVHGVHDODQWLVEHLQJXVHGIRUWKHWHUUD]]R x 7KHUXEEHUÀRRULQJXVHGLQWHOHFRPPXQLFDWLRQFORVHWVDQGLQ YDULRXVYHVWLEXOHVLVDUDSLGO\UHQHZDEOHUHVRXUFHDQGDOVR FRQWDLQVSRVWLQGXVWULDOUHF\FOHFRQWHQW x 3DLQWFRQWDLQV=(5292&¶V 5HIHUHQFHV ³%XLOGLQJ&RQVWUXFWLRQDQG0DLQWHQDQFH3URGXFWV&RQWDLQLQJ3HUVLVWHQW %LRDFFXPXODWLYH7R[LF&KHPLFDOV3%7V´,1)2501HZ<RUN 0DOLQ$:D1*UHHQVSHF'LUHFWRU\0RQWSHOLHU97'DQ :RRGEXU\ 0HQGOHU6DQG:2GHOO7KH+2.*XLGHERRNWR6XVWDLQDEOH 'HVLJQ1HZ<RUN-RKQ:LOH\DQG6RQV,QF 0DWHULDO6HOHFWLRQ &KDSWHU:DVWH3UHYHQWLRQ *RDO(OLPLQDWHZDVWHSURGXFHGRQWKHMREVLWH %HQH¿WV x x x 5HGXFWLRQLQH[SHQGLWXUHVIRUPDWHULDOVDQGOHVVPDWHULDO QHFHVVDU\ /RZHUODERUFRVWVUHVXOWVLQOHVVPDWHULDOWREHKDQGOHGDQGFXW 'HFUHDVHLQGLVSRVDOFRVWVODQG¿OOWLSSLQJIHHVGHFUHDVHG .H\V,VVXHV 0DWHULDO+DQGOLQJDQG3XUFKDVLQJ x $YRLGGDPDJHE\KDQGOLQJDQGVWRULQJPDWHULDOVSURSHUO\ x (VWLPDWHPDWHULDOTXDQWLWLHVDVDFFXUDWHO\DVSRVVLEOHPRUH DFFXUDWH OHVVZDVWH x 3XUFKDVHSUHFXWDQGSUHIDEULFDWHGFRPSRQHQWVZKHQDYDLODEOH x 2UGHUPDWHULDOVWRVL]HZKHQSRVVLEOH 0DWHULDO6HOHFWLRQ x 3XUFKDVHKLJKTXDOLW\FRQVWUXFWLRQJUDGHPDWHULDOV x 5HGXFHSDFNDJLQJZDVWHWKURXJKYHQGRUSDUWLFLSDWLRQ5HI 6HFWLRQ x 5HGXFHWKHXVHRIQRQUHF\FODEOHPDWHULDOVZKHQYLDEOH x 5HSODFHGLVSRVDEOHPDWHULDOVDQGSURGXFWVZLWKUHXVDEOH PDWHULDOVDQGSURGXFWV x 5HXVHMREVLWHPDWHULDOVVXFKDVFRQFUHWHIRUPVDQGIHQFLQJ x 8VHVDOYDJHGPDWHULDOVIURPRWKHUMREV :DVWH3UHYHQWLRQ &RQVWUXFWLRQ0HWKRGV6HTXHQFLQJDQG6FKHGXOLQJ x &RRUGLQDWHMXVWLQWLPHGHOLYHULHV x 8VHPHWKRGVIRUFRQVWUXFWLRQRIWHPSRUDU\VWUXFWXUHVWKDWDOORZ IRUUHXVHVXFKDVVFUHZVUDWKHUWKDQQDLOV x 8VHDFHQWUDODUHDIRUFXWWLQJDQGVWRUDJHRIVFUDSVIRUUHXVH x $OORZIRUORFDOVFDYHQJLQJLIQRWDVLWHVDIHW\LVVXH x 'RQDWHRUVHOOXSRQRZQHUDSSURYDOUHXVDEOHLWHPVIURPWKH MRE x 'HYHORSDOLVWRIDQWLFLSDWHGZDVWHDQGWKHQGHYHORSPHWKRGVWR UHGXFHWKHDQWLFLSDWHGZDVWH x 'HYHORSLQLWLDWLYHVWRUHGXFHUHXVHDQGUHF\FOHZDVWH x +DYHDOOVXEFRQWUDFWRUVDQGVXSSOLHUVSURSRVHSURFHGXUHVIRU ZDVWHPLQLPL]DWLRQLQFOXGLQJVXSSO\GHOLYHU\KDQGOLQJVWRUDJH HI¿FLHQFLHVSDFNDJLQJSURWHFWLRQSUHFXWWLQJDQGUHF\FOLQJ 5HIHUHQFHV $7HFKQLFDO0DQXDOIRU0DWHULDO&KRLFHVLQ6XVWDLQDEOH&RQVWUXFWLRQ 6DFUDPHQWR&$6WDWHRI&DOLIRUQLD,QWHJUDWHG:DVWH 0DQDJHPHQW%RDUG 9OHFN5(³$GYDQFHG&RQVWUXFWLRQDQG'HPROLWLRQ:DVWH 0DQDJHPHQWIRU)ORULGD%XLOGHUV´8QLYHUVLW\RI)ORULGD :DVWH:LVH%XLOGLQJ&KDOOHQJH(QYLURQPHQWDO3URWHFWLRQ $JHQF\ :DVWH3UHYHQWLRQ &KDSWHU:DVWH3UHYHQWLRQ 3ODQQLQJ *RDO5HGXFHRUHOLPLQDWHZDVWHWKURXJKRXWWKHEXLOGLQJSURFHVV $FWLRQVDQG0HWKRGV &RQGXFWSHULRGLFEUDLQVWRUPLQJVHVVLRQVRQKRZWRUHGXFH ZDVWH x 3UHSDUHD&RQVWUXFWLRQ:DVWH0DQDJHPHQW3ODQWKDW LQFOXGHVZDVWHSUHYHQWLRQDFWLYLWLHV5HIHUHQFH6LPSVRQ x &RPPXQLFDWH\RXUZDVWHPDQDJHPHQWSODQDWPHHWLQJVSRVWLW RQOLQHDQGSURPRWHWKHUHVXOWV x 'HYHORSDQGSRVWMREVLWHZDVWHUHGXFWLRQSODQZLWKUHGXFWLRQ JRDOVLQFHQWUDOORFDWLRQV x 7UDLQLQJXVHPHHWLQJVWRLQIRUPFRQWUDFWRUVVXEFRQWUDFWRUV DQGODERUHUVDERXWWKHLPSRUWDQFHRIZDVWHUHGXFWLRQ x 'HVLJQDWHVRPHRQHWROHDGDQGPDQDJHWKHZDVWHUHGXFWLRQ SURJUDP x 3URYLGHSRVLWLYHLQFHQWLYHVWRFUHZVWRHQFRXUDJHZDVWH UHGXFWLRQSL]]DV%%4KDWVWVKLUWV±EHFUHDWLYH x 'HYHORSDOLVWRIVXSSOLHUFRQWDFWVWKDWDUHSURDFWLYHLQSODQQLQJ WKHLUZDVWHUHGXFWLRQWHFKQLTXHV 2SSRUWXQLWLHVWR$YRLG:DVWHGXULQJ'HVLJQ x 'HVLJQZLWKVWDQGDUGVL]HVIRUEXLOGLQJPDWHULDOV x 6SHFLI\PDWHULDOVDQGDVVHPEOLHVWKDWFDQEHHDVLO\ GLVDVVHPEOHGDWWKHHQGRIWKHLUXVHIXOOLIH x 'HVLJQSUHFDVWFRQFUHWHPHPEHUVIRUFRQFUHWH7LOWXS FRQVWUXFWLRQ x &KRRVHGXUDEOHQRQWR[LFLQWHULRU¿QLVKHVRUPDWHULDOV x x x 'HVLJQVSDFHVWREHÀH[LEOHIRUFKDQJLQJXVHV &RQVLGHUUHXVLQJPDWHULDOVRQVLWHRULQVWDOOLQJVDOYDJHG PDWHULDOVIURPRIIVLWHVRXUFHV :DVWH3UHYHQWLRQ -REVLWH:DVWH3UHYHQWLRQ0HWKRGV x 6HWXSDFHQWUDOFXWWLQJDUHDIRUZRRGDQGRWKHUPDWHULDOV x 5HXVHFRQFUHWHIRUPVRUFKRRVHUHXVDEOHPHWDORU¿EHUJODVV IRUPV x &OHDUO\PDUNDUHDVNH\WRZDVWHSUHYHQWLRQVXFKDVWKHPDWHULDO VWRUDJHFHQWUDOFXWWLQJDQGUHF\FOLQJVWDWLRQV x 3UDFWLFHPDWHULDOVWRUDJHDQGKDQGOLQJSURFHGXUHVWRSUHYHQW ORVVRUGDPDJH $YRLG:DVWHGXULQJ3XUFKDVLQJ x &KHFNWRHQVXUHWKHFRUUHFWDPRXQWRIHDFKPDWHULDOLVGHOLYHUHG WRVLWH x 0DLQWDLQDQXSWRGDWHPDWHULDORUGHULQJDQGGHOLYHU\VFKHGXOH WRPLQLPL]HWKHDPRXQWRIWLPHWKDWPDWHULDOVDUHRQVLWHDQG UHGXFHWKHFKDQFHRIGDPDJH x 5HSODFHWR[LFPDWHULDOVZLWKOHVVWR[LFRUQRQWR[LFSURGXFWVWR UHGXFHKD]DUGRXVSDFNDJLQJ x &KRRVHSURGXFWVZLWKPLQLPDORUQRSDFNDJLQJ x $VNVXSSOLHUVWRGHOLYHUVXSSOLHVXVLQJVWXUG\UHWXUQDEOHSDOOHWV DQGFRQWDLQHUV+DYHVXSSOLHUVSLFNXSSDOOHWVDQGHPSW\ FRQWDLQHUV x 5HTXLUHVXSSOLHUVWRWDNHEDFNRUEX\EDFNVXEVWDQGDUG UHMHFWHGRUXQXVHGLWHPV 5HIHUHQFHV 6LPSVRQ6&RQVWUXFWLRQ:DVWH0DQDJHPHQW*XLGH0HWKRGV WR6DYH0RQH\DQG5HVRXUFHV2O\PSLD:$6WDWHRI:DVKLQJWRQ 'HSDUWPHQWRI*HQHUDO$GPLQLVWUDWLRQ $7HFKQLFDO0DQXDOIRU0DWHULDO&KRLFHVLQ6XVWDLQDEOH&RQVWUXFWLRQ 6DFUDPHQWR&$6WDWHRI&DOLIRUQLD,QWHJUDWHG:DVWH 0DQDJHPHQW%RDUG 9OHFN5($GYDQFHG&RQVWUXFWLRQDQG'HPROLWLRQ:DVWH 0DQDJHPHQWIRU)ORULGD%XLOGHUV8QLYHUVLW\RI)ORULGD :DVWH3UHYHQWLRQ &KDSWHU:DVWH3UHYHQWLRQ *HQHUDO&RQGLWLRQV *RDO5HGXFHRUHOLPLQDWHZDVWHWKURXJKRXWWKHEXLOGLQJSURFHVV 0RUHZDVWHDYRLGDQFHPHWKRGV x x x x x x x .HHSDFFXUDWHSURMHFWUHFRUGVRIWKHFRVWVDQGVDYLQJV DVVRFLDWHGZLWKZDVWHSUHYHQWLRQ3URYLGHWKHLQIRUPDWLRQWRWKH EXLOGLQJRZQHUDQGLISRVVLEOHHVWLPDWHWKHFRVWVDYLQJVDQGWKH FRUUHVSRQGLQJHQYLURQPHQWDOLPSDFWV 8VHORFDOO\DYDLODEOHPDWHULDOVDQGUHVRXUFHV 6HWXSVWRFNSLOHVRIIUHHOHIWRYHURUVFUDSEXLOGLQJVXSSOLHV :RUNZLWK¿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³&RQVWUXFWLRQ:DVWH0LQLPL]DWLRQ0HWKRGV´1HEUDVND(QHUJ\ 2I¿FHKWWSZZZVWDWHQHXVKRPH1(2KRPHBFRQVWIDFWVKHHWVFRQVWB ZDVWHBPLQKWP ³&RQWUDFWRUV*XLGH6HDWWOH.LQJ&RXQW\6DYH0RQH\DQG5HVRXUFHV WKURXJK-RE6LWH5HF\FOLQJDQG:DVWH3UHYHQWLRQ´.LQJ&RXQW\ 6ROLG:DVWH'LYLVLRQ6HDWWOHKWWSGQUPHWURNFJRYVZGEL]SURJVXVB EXLOG&RQ*XLGHSGI ³0LQLPL]LQJ&RQVWUXFWLRQDQG'HPROLWLRQ:DVWH´+DZDLL 'HSDUWPHQWRI+HDOWKKWWSZZZKDZDLLJRYKHDOWKHKFDRVEBOLEUDU\ FBDQGBGBZDVWHBPLQSGI 2¶%ULHQ.%HVW0DQDJHPHQW3UDFWLFHVDQG7RROVIRU-RE6LWH5HF\FOLQJ DQG:DVWH5HGXFWLRQLQ+DZDLL$&RQWUDFWRU¶V:DVWH0DQDJHPHQW *XLGH7KH6WDWHRI+DZDLL :DVWH3UHYHQWLRQ &KDSWHU:DVWH3UHYHQWLRQ 'HPROLWLRQDQG$EDWHPHQW *RDO5HGXFHRUHOLPLQDWHGHPROLWLRQDQGDEDWHPHQWZDVWH $FWLRQVDQG0HWKRGV 6DOYDJH2SSRUWXQLWLHV x $VVHVVWHVWZDVWHIRUFRQWDPLQDWLRQOHDGDVEHVWRVPROG EHIRUHGHWHUPLQLQJWKHFRUUHFWUHPRYDODQGGLVSRVDOPHWKRG x &RQGXFWGHWDLOHGDVVHVVPHQWVWREHWWHUXQGHUVWDQGPDWHULDOVRU HTXLSPHQWWKDWDUHVDOYDJHDEOHYVUHF\FODEOH x 'HYHORSPHQWGHPROLWLRQVHTXHQFHVDURXQGVDOYDJHDEOHPDWHULDO UHPRYDOZKHUHWLPHDOORZV x 'XULQJUHPRGHOLQJVHSDUDWHPHWDOUDGLDWRUVJUDWHVSLSLQJ DOXPLQXPVLGLQJDQGROGDSSOLDQFHVIRUUHXVHUHF\FOLQJRU VXSSOLHUPDQXIDFWXUHEX\EDFN x ,QYHQWRU\VDOYDJHDEOHPDWHULDOVGHWHUPLQHWKHYROXPHDQG YDOXHRIVDOYDJHDEOHPDWHULDOV x (VWLPDWHODERUKRXUVWRGLVPDQWOHEXLOGLQJDQGWRPDNH DFFHVVLEOHWKHVDOYDJHDEOHPDWHULDOVYVVLPSO\GLVSRVLQJ PDWHULDO x $OORZIRUORFDOVFDYHQJLQJLIQRWDVLWHVDIHW\LVVXH6FKHGXOH DGD\RUDIWHUQRRQZKHQSHRSOHFDQFRPHE\DQGWDNHVDOYDJHG HTXLSPHQWDQGPDWHULDO5HFRUGWKHYDOXHRIWKHVHLWHPV EHFDXVHWKH\DUHSRVVLEOHWD[ZULWHRIIVDQGSURMHFWVDYLQJV 7KH,56UHTXLUHVLWHPVZRUWKPRUHWKDQEHDSSUDLVHG 3ODQQLQJDQG(GXFDWLRQ x ,GHQWLI\SUREOHPDUHDV$VEHVWRVOHDGEDVHGSDLQWDQGWUHDWHG ZRRG x ,QFOXGHUHTXLUHPHQWVIRUMREWUDLQLQJFRPSOLDQFHVLQVWDWHPHQWRI ZRUN x 'HYHORSDGHPROLWLRQDQGDEDWHPHQWSODQWRHYDOXDWHFRVWV x ,QVWLWXWHGHFRQVWUXFWLRQDVVRRQDVSRVVLEOH5HI&K &RQGXFWZRUNVKRSVWRGHYHORSDORFDOVWUDWHJ\IRUVDOYDJLQJ x :DVWH3UHYHQWLRQ &DVH6WXG\ :DVWH5HGXFWLRQ$UJRQQH1DWLRQDO/DE$UJRQQH,/ 3URMHFW'HVFULSWLRQ 'HPROLWLRQRIRI¿FHEXLOGLQJDW$UJRQQH1DWLRQDO /DE&RPELQDWLRQRIZRRGIUDPHFLQGHUEORFNDQGFRUUXJDWHGPHWDO FRQVWUXFWLRQ &XUUHQW:DVWH'LVSRVDOFXELF \DUGVJURXQGGRZQIURPOF\ &XUUHQW5HF\FOLQJ3URJUDP 0HWDOVOF\WRQV $OXPLQXP OF\OEV &RQFUHWH OF\WRQV 3DSHU OF\OEV &RSSHU OF\OEV &XUUHQW:DVWH5HGXFWLRQ6DYLQJV 6RXUFH$UJRQQH1DWLRQDO/DE$UJRQQH,/ 5HIHUHQFHV ³*HQHUDO3UDFWLFHV&KHFNOLVW´$&RQWUDFWRU¶V:DVWH0DQDJHPHQW*XLGH 3XODVNL0&+HZLWWHWDO'HVLJQIRU'HFRQVWUXFWLRQ0DWHULDO 5HXVHDQG&RQVWUXFWDELOLW\7KH3LWWVEXUJK3DSHUV%HVWRI*UHHQEXLOG %UDWWOHERUR97%XLOGLQJ*UHHQ,QF 9OHFN5(³$GYDQFHG&RQVWUXFWLRQDQG'HPROLWLRQ:DVWH 0DQDJHPHQWIRU)ORULGD%XLOGHUV´8QLYHUVLW\RI)ORULGD :DVWH3UHYHQWLRQ &KDSWHU:DVWH$YRLGDQFH 6LWH:RUN *RDO5HGXFHRUHOLPLQDWHZDVWHJHQHUDWHGGXULQJVLWHZRUN $FWLRQVDQG0HWKRGV &RQVWUXFWDFFHVVURDGVZLWKFRQVLGHUDWLRQRIPLQLPL]LQJLPSDFW RQYHJHWDWLRQDQGSHUPHDELOLW\RIWKHVRLOWU\LQJWROLPLWURDGVWR DUHDVWKDWZLOOHYHQWXDOO\EHSDYHG x :KHQFRQVWUXFWLQJWHPSRUDU\VWUXFWXUHVIRUVLWHZRUNXVH PHWKRGVWKDWDOORZIRUUHXVHVXFKDVVFUHZVUDWKHUWKDQQDLOV x $YRLGFOHDULQJDGGLWLRQDODUHDVZKHQSRVVLEOHRQVLWHIRU HPSOR\HHSDUNLQJDQGHTXLSPHQWVWRUDJH x 6DYHH[FHVV39&GUDLQDJHSLSLQJIRUXVHRQIXWXUHMREV 5HF\FOHWKHVFUDSVDQGZDVWH &RQFUHWH x &RQFUHWHFKXQNVROGEULFNVEURNHQEORFNDQGRWKHUPDVRQU\ UXEEOHFDQEHXVHGDVEDFN¿OODORQJIRXQGDWLRQZDOOVZKHUH SHUPLWWHG x 8WLOL]HH[FHVVFRQFUHWHIRUSDUNLQJVWRSVMHUVH\EDUULHUVHWF $VSKDOW x 8WLOL]HH[FHVVDVSKDOWSDYLQJWR¿[VXUURXQGLQJURDGVGULYHV SDUNLQJORWVHWF /DQGVFDSLQJ x 8VHVRLOIURPVLWHH[FDYDWLRQIRUODQGVFDSLQJDJULFXOWXUDODQG UHVLGHQWLDO¿OO x 6HOODOOPDUNHWDEOHWUHHVGHVLJQDWHGIRUUHPRYDO x *ULQGFKLSRUVKUHGRWKHUYHJHWDWLRQIRUPXOFKLQJRUFRPSRVWLQJ x 'HVLJQDWHRQVLWHORFDWLRQVIRUH[FDYDWHGURFNVRLODQG YHJHWDWLRQ x x 6HSDUDWHVWXPSVEUXVKDQGRWKHUZRRGZDVWHIRUUHF\FOLQJ x ,QYHVWLJDWHDQ\XQQHFHVVDU\WUHHRUYHJHWDWLRQUHPRYDO UHGXFLQJWKHFOHDULQJDQGJUXEELQJZDVWHRQVLWH 6WRUHVSRLOVRQVLWH7KLVUHGXFHVWUDQVSRUWDWLRQFRVWVDQG HQHUJ\XVH 7UHDWFRQWDPLQDWHGVRLOVIRUUHXVHUDWKHUWKDQLPSRUWLQJQHZVRLO x x :DVWH3UHYHQWLRQ 5HIHUHQFHV ³&RQVWUXFWLRQ'HPROLWLRQ:DVWH5HF\FOLQJDQG'LVSRVDO´ 6DVNDWFKHZDQ(QYLURQPHQW(QYLURQPHQWDO3URWHFWLRQ%UDQFK 6DVNDWFKHZDQKWWSZZZVHJRYVNFDHQYLURQPHQWSURWHFWLRQODQG&RQ VWUXFWLRQDQG'HPROLWLRQ3')SGI 9OHFN5(³$GYDQFHG&RQVWUXFWLRQDQG'HPROLWLRQ:DVWH 0DQDJHPHQWIRU)ORULGD%XLOGHUV´8QLYHUVLW\RI)ORULGD :DVWH3UHYHQWLRQ &KDSWHU:DVWH3UHYHQWLRQ )RXQGDWLRQV *RDO5HGXFHZDVWHSURGXFHGGXULQJIRXQGDWLRQFRQVWUXFWLRQ $FWLRQVDQG0HWKRGV 5HGXFHZDVWHIDFWRUVLQWDNHRIIV x 1HJRWLDWHPDWHULDOEX\EDFNSROLFLHVIRUFRQFUHWHVXSSOLHUVZKHQ IHDVLEOH x 8WLOL]HH[FHVVFRQFUHWHIRUSDUNLQJVWRSVMHUVH\EDUULHUVHWF 6LWH/RJLVWLFV x 'HVLJQDWHDVHSDUDWHFHQWUDOORFDWLRQIRUZRRGVFUDSVH[WUD UHEDUDQGRWKHUSDUWLDOO\XVHGPDWHULDOWKDWPDNHLWHDV\DQG FRQYHQLHQWIRUZRUNHUVWRXWLOL]HVFUDSV x /LPLWWKHQXPEHURIGHVLJQDWHGFRQFUHWHZDVKRXWDUHDVWRDYRLG WKHH[SHQVHRIFOHDQLQJDQGPDLQWDLQLQJVHYHUDOVPDOOZDVKRXW DUHDV0DNHVXUHZDVKRXWVDUHVL]HGDSSURSULDWHO\IRUDGHTXDWH VWRUDJHFDSDFLW\8VHFOHDUYLVLEOHVLJQVDQGHGXFDWHWKH FRQWUDFWRUWRHQVXUHWKHGHVLJQDWHGDUHDVDUHXVHG x 3HUIRUPDOOFXWWLQJVKDSLQJDQGW\LQJLQDFHQWUDOORFDWLRQ )RUPZRUN x 'RXEOHFKHFNDFFXUDF\RIIRUPZRUNHUHFWLRQWRKHOSUHGXFH DPRXQWRIUHZRUNUHSRXULQJ x 0LQLPL]HWKHXVHRIZRRGIRUPV 5HEDU x 6HOOUHEDUIRUVFUDSRUXVHLWRQDQRWKHUMRE x 8VHSUHDVVHPEOHGUHEDUFDJHVZKHQSRVVLEOHWRUHGXFHRQVLWH UHEDUZDVWH x :DVWH3UHYHQWLRQ &DVH6WXG\ :DVWH5HGXFWLRQ3DFL¿F3OD]D3DUNLQJ6WUXFWXUH'DO\&LW\&$ 3URSHUVRLOFRQGLWLRQV DQGSUHFLVHH[FDYDWLRQ FDQVLJQL¿FDQWO\UHGXFH WKHDPRXQWRIIRUPZRUN QHFHVVDU\ 7KLVKDVDODUJHLPSDFWRQ UHGXFLQJODERUZDVWHGXULQJ WKHIRXQGDWLRQSKDVHRIWKH SURMHFW 2QWKLVSURMHFWLQ'DO\&LW\ &$WKHRQO\IRUPZRUN QHFHVVDU\ZDVWKDWXVHGIRU EXONKHDGVDQGFKDQJHVLQ IRRWLQJHOHYDWLRQ 5HIHUHQFHV ³&RQVWUXFWLRQ:DVWH0LQLPL]DWLRQ0HWKRGV´1HEUDVND(QHUJ\ 2I¿FHKWWSZZZVWDWHQHXVKRPH1(2KRPHBFRQVWIDFWVKHHWVFRQVWB ZDVWHBPLQKWP 9OHFN5(³$GYDQFHG&RQVWUXFWLRQDQG'HPROLWLRQ:DVWH 0DQDJHPHQWIRU)ORULGD%XLOGHUV´8QLYHUVLW\RI)ORULGD :DVWH3UHYHQWLRQ &KDSWHU:DVWH3UHYHQWLRQ 6XEVWUXFWXUH *RDO5HGXFHRUHOLPLQDWHZDVWHSURGXFHGGXULQJVXEVWUXFWXUHZRUN $FWLRQVDQG0HWKRGV x x x x x 8VHWUHQFKOHVVWHFKQRORJ\IRULQVWDOOLQJDQGUHKDELOLWDWLQJ XQGHUJURXQGXWLOLW\V\VWHPV7KLVFUHDWHVPLQLPDOVXUIDFH GLVUXSWLRQDQGFDQHOLPLQDWHWKHQHHGWRUHPRYHVHFWLRQVRI VWUHHWVVLGHZDONVDQGODZQV 8VHWUHQFKOHVVWHFKQRORJ\WRDYRLGWUHHORVVDQGWUHHURRW GDPDJHGXULQJFRQVWUXFWLRQ 5HSDLUH[LVWLQJXQGHUJURXQGVXEVWUXFWXUHZKHUHDSSOLFDEOH (QVXUHSURSHUSUHFDXWLRQVDUHWDNHQWRDYRLGHDUWKFROODSVHRU LQ¿OOÀRRGLQJHWF 6DYHH[FHVV39&GUDLQDJHSLSLQJIRUXVHRQIXWXUHMREV 5HF\FOHWKHVFUDSVDQGZDVWH &DVH6WXG\ :DVWH5HGXFWLRQ 7UHQFKOHVVWHFKQRORJ\ $SLORWERUHLVPDGH DQGSLSLQJLVSXOOHGEDFN WKURXJKSLORWKROH7KHQ DGGLWLRQDOVHFWLRQVRISLSH DUHFRQQHFWHGDQGSXOOHG LQ $YRLGGDPDJHWRWUHHVDQGUHGXFHSXEOLF DQQR\DQFHE\XVLQJWUHQFKOHVVWHFKQRORJ\IRU XQGHUJURXQGVXEVWUXFWXUHZRUN :DVWH3UHYHQWLRQ 5HIHUHQFHV ³3URWHFWLQJWKH8UEDQ)RUHVWZLWK7UHQFKOHVV7HFKQRORJ\´ 9HUPHHU0DQXIDFWXULQJ&RPSDQ\KWWSZZZYHUPHHUFRPMREBVWRULHV 7UHQFKOHVVKRUL]RQWDOBGLUHFWLRQDOBGULOOV7UHHB5RRWBSURWHFWLRQKWP ³7UHQFKOHVV7HFKQRORJ\DVDQ(QYLURQPHQWDOO\6RXQG7HFKQRORJ\ 6RPH,PSRUWDQW%HQH¿WV´,QWHUQDWLRQDO(QYLURQPHQWDO 7HFKQRORJ\&HQWUHKWWSZZZXQHSRUMSLHWF3XEOLFDWLRQV8UEDQ 8UEDQ(QYDVS :DVWH3UHYHQWLRQ &KDSWHU:DVWH3UHYHQWLRQ 6XSHUVWUXFWXUH *RDO5HGXFHRUHOLPLQDWHZDVWHSURGXFHGZKLOHFRQVWUXFWLQJWKH VXSHUVWUXFWXUH $FWLRQVDQG0HWKRGV 5HGXFHZDVWHIDFWRUVLQWDNHRIIV x 6WULYHWRUHGXFHH[FHVVPDWHULDORUGHULQJ x 8VHSUHFDVWRUSUHIDEULFDWHGDVVHPEOLHVZKHQSRVVLEOHHJ SUHFDVWFRQFUHWH x &RQVLGHUXVLQJHDVLO\VWDFNDEOHXQLWVFODGGLQJV\VWHPVFXUWDLQ ZDOOVVWHHOEHDPVHWF7KHVHFDQUHGXFHWUDQVSRUWDWLRQFRVWV WRWKHVLWH x 2UGHUPHWDOGHFNLQJWRWKHUHTXLUHGOHQJWKDQGUHGXFHWKH QXPEHURIFXWV 0DWHULDO6WRUDJH x 6WRUHPDWHULDOVLQDVDIHGU\DERYHJURXQGORFDWLRQDQGSUHYHQW FRQWDFWZLWKPDWHULDOWKDWPD\FDXVHFRUURVLRQGLVFRORUDWLRQRU VWDLQLQJ x 6WRUHOXPEHURQOHYHOEORFNLQJDQGXQGHUFRYHUWRPLQLPL]H ZDUSLQJWZLVWLQJDQGZDVWH x 6HSDUDWHDQGVWRUHXQXVHGSRUWLRQVRIUHLQIRUFLQJEDUDQG SHUIRUPDOOFXWWLQJVKDSLQJDQGW\LQJLQDFHQWUDOORFDWLRQ 6WHHO x 6WHHOIUDPLQJLVXVXDOO\GHOLYHUHGWRWKHVLWHLQDSUHFLVH PHDVXUH$Q\RQVLWHFXWRIIVVKRXOGEHUHF\FOHG x 6HOOUHEDUDQGRWKHUVWHHOZDVWHIRUVFUDSRUXVHLWRQDQRWKHU MRE x *LYHSUHIHUHQFHWRPHFKDQLFDOIDVWHQHUVDQGUHOHDVDEOH DGKHVLYHVRYHUPRQROLWKLFIDVWHQHUVWRIDFLOLWDWHPDWHULDO UHFRYHU\DQGUHGXFHWR[LFLW\ x :DVWH3UHYHQWLRQ &RQFUHWH x /DUJHSDQHOIRUPZRUNV\VWHPVDUHHIIHFWLYHLQUHGXFLQJFRQFUHWH ZDVWHJHQHUDWHGE\ORVVHVGXHWRGDPDJHGIRUPZRUNZKLFK XVXDOO\DFFRXQWVIRURIWKHWRWDOFRQFUHWHZDVWH x $YRLGRYHUHQJLQHHULQJFXVWRPL]HGIRUPZRUN x 8VHGXUDEOHIRUPLQJPDWHULDOVZKHQIRUPZRUNLVUHTXLUHG x 8VHSUHDVVHPEOHGUHEDUFDJHVZKHQSRVVLEOHWRUHGXFHRQVLWH UHEDUZDVWH &DVH6WXG\ :DVWH5HGXFWLRQ 3LFWXUHRQWKHOHIWLVDQH[DPSOHRIODUJH SDQHOIRUPZRUNV\VWHP7KLVV\VWHP SURGXFHVDFRQFUHWHVXUIDFHWKDWLVQHDWHU WKDQQRUPDOO\SURGXFHGE\FRQYHQWLRQDO WLPEHUIRUPZRUN)XUWKHUPRUHWKHVXUIDFH GRHVQRWQHHGDQDSSOLHG¿QLVKIRUOHYHOLQJ WKXVUHGXFLQJFRQFUHWHZDVWH 5HIHUHQFHV ³&RQWUDFWRUV*XLGH6HDWWOH.LQJ&RXQW\6DYH0RQH\DQG5HVRXUFHV WKURXJK-RE6LWH5HF\FOLQJDQG:DVWH3UHYHQWLRQ´.LQJ&RXQW\ 6ROLG:DVWH'LYLVLRQ6HDWWOHKWWSGQUPHWURNFJRYVZGEL]SURJVXVB EXLOG&RQ*XLGHSGI 2¶%UHLQ.³%HVW0DQDJHPHQW3UDFWLFHVDQG7RROVIRU-RE6LWH5HF\FOLQJ DQG:DVWH5HGXFWLRQLQ+DZDLL´7KH6WDWHRI+DZDLL ³$6HULHVRI)DFWVKHHWVRQ1HZ&RQVWUXFWLRQ,VVXHV&RQVWUXFWLRQ:DVWH 0LQLPL]DWLRQ0HWKRGV´1HEUDVND(QHUJ\2I¿FH 9OHFN5(³$GYDQFHG&RQVWUXFWLRQDQG'HPROLWLRQ:DVWH 0DQDJHPHQWIRU)ORULGD%XLOGHUV´8QLYHUVLW\RI)ORULGD ³:DVWH6SHF0RGHO6SHFL¿FDWLRQVIRU&RQVWUXFWLRQ:DVWH5HGXFWLRQ 5HXVH$QG5HF\FOLQJ´7ULDQJOH-&RXQFLORI*RYHUQPHQWV5HVHDUFK 7ULDQJOH3DUN1& :DVWH3UHYHQWLRQ &KDSWHU:DVWH3UHYHQWLRQ ([WHULRU(QFORVXUH *RDO5HGXFHRUHOLPLQDWHZDVWHSURGXFHGZKLOHHQFORVLQJWKH EXLOGLQJ 0DWHULDOV$VVRFLDWHGZLWK:DVWH x x %ULFN &RQFUHWH0DVRQU\%ORFN&08 $FWLRQVDQG0HWKRGV x x x x x x 8VHODUJHSDQHOIRUPZRUNV\VWHPVWRUHGXFHFRQFUHWHZDVWH JHQHUDWHGE\ORVVHVGXHWRGDPDJHGIRUPZRUN (OLPLQDWHH[FHVVLYHZDVWHIDFWRUVZKHQGRLQJWDNHRIIV 6WULYHWRUHGXFHH[FHVVPDWHULDORUGHULQJ 6DYHOHIWRYHUPDVRQU\IRUDIXWXUHMRERUUHWXUQWKHPWRWKH VXSSOLHU8VHGDPDJHGPDVRQU\EORFNIRUVLWH¿OO 0LQLPL]HZDVWHRIH[WHULRUFODGGLQJRUH[WHULRU¿QLVKE\RUGHULQJ RQO\WKHTXDQWLW\QHHGHG 'HYHORSHI¿FLHQWRUGHULQJV\VWHPVWRHQVXUHPLQLPDOZDVWH 8VHSDQHOL]HGFXUWDLQZDOOV\VWHPVWRUHGXFHPDWHULDOZDVWHRQ VLWH&RQVLGHUXVLQJFXUWDLQZDOOVVKHDWKLQJOLJKWJDXJHVWHHO IUDPLQJVKHDWKLQJDQGSUHFDVWXQLWV 5HGXFH3DFNDJLQJ:DVWH x 6HHNVXSSOLHUVZKRGHOLYHU PDWHULDOVXVLQJEXON SDFNDJLQJWHFKQLTXHVRU PLQLPDOSDFNDJLQJ x (QFRXUDJHDOWHUQDWLYH VXVWDLQDEOHSDFNDJLQJ WHFKQLTXHVHJPHWDO VWUDSSLQJLQSUHIHUHQFH WRVKULQNZUDSSDSHU SDFNDJLQJDVRSSRVHGWR SODVWLFDQGVKUHGGHGSDSHU DVRSSRVHGWRIRDP x :DVWH3UHYHQWLRQ 0DWHULDO6WRUDJH x 8VHUHXVDEOHGHOLYHU\DQGVWRUDJHFRQWDLQHUVZKHUHSRVVLEOH x 6WRUHPDWHULDOVLQDVDIHGU\DERYHJURXQGORFDWLRQDQG SUHYHQWFRQWDFWZLWKPDWHULDOWKDWPD\FDXVHFRUURVLRQ GLVFRORUDWLRQRUVWDLQLQJ x &ROOHFWDQGVWDFNEULFNVRURWKHUPDVRQU\PDWHULDOVVFDWWHUHG DURXQGWKHMREVLWHWRNHHSWKHPIURPJHWWLQJORVWRUVRLOHG &DVH6WXG\ :DVWH5HGXFWLRQ5HF\FOHPDVRQU\EORFNV 3LOHVRIORRVHPDVRQU\PDWHULDO DUHDFRPPRQRFFXUUHQFHRQ FRQVWUXFWLRQVLWHV,QVWHDGRI WKURZLQJDZD\ORRVHRUEURNHQ EULFNVUHF\FOHWKHPVRWKH\ FDQEHFUXVKHGIRUODQGVFDSLQJ PDWHULDORUFROOHFWDQGVWDFN WKHPVRWKH\FDQEHXVHGRU UHWXUQHGWRWKHVXSSOLHU 5HIHUHQFHV ³/RZ:DVWH%XLOGLQJ7HFKQRORJLHVDQG3UDFWLFHV´7KH+RQJ .RQJ3RO\WHFKQLF8QLYHUVLW\KWWSZZZFVHSRO\XHGXKNaFHFVSRRQ OZEW)UDPHB3DJH)UDPHBIRUPZRUNKWP 2¶%UHLQ.³%HVW0DQDJHPHQW3UDFWLFHVDQG7RROVIRU-RE6LWH5HF\FOLQJ DQG:DVWH5HGXFWLRQLQ+DZDLL´7KH6WDWHRI+DZDLL 9OHFN5(³$GYDQFHG&RQVWUXFWLRQDQG'HPROLWLRQ:DVWH 0DQDJHPHQWIRU)ORULGD%XLOGHUV´8QLYHUVLW\RI)ORULGD :DVWH3UHYHQWLRQ &KDSWHU:DVWH3UHYHQWLRQ 5RR¿QJ *RDO5HGXFHRUHOLPLQDWHZDVWHSURGXFHGGXULQJURR¿QJFRQVWUXFWLRQ $FWLRQVDQG0HWKRGV 6DYHXQXVHGURR¿QJ PDWHULDOIRUXVHRQRWKHU MREVRUGRQDWHWKHPWRQRQ SUR¿WV x (PSOR\DFFXUDWHFXWWLQJ SURFHGXUHVDQGTXDQWLW\ WDNHRIIVWRUHGXFHURR¿QJ ZDVWHVKLQJOHVÀDVKLQJ VKHHWPHWDOURR¿QJDQG PHPEUDQHURR¿QJ /HIWRYHUVKLQJOHVFDQEHGRQDWHGWR x8VHPDQXIDFWXUHGURR¿QJ ORFDOQRQSUR¿WKRXVLQJRUJDQL]DWLRQV 7KLVFDQVDYHRQGLVSRVDOFRVWV ZKHUHSRVVLEOHWRUHGXFHRQ VLWHIDEULFDWLRQZDVWH x 6HOHFWURR¿QJVXSSOLHUVZLWKPDWHULDOEX\EDFNSURJUDPV x 6HHNVXSSOLHUVZKRGHOLYHUURR¿QJPDWHULDOVXVLQJEXON SDFNDJLQJWHFKQLTXHV x 6WRUHPDWHULDOVSURSHUO\WRDYRLGGDPDJHDQGH[FHVVLYH PRLVWXUHEXLOGXS x 2UGHUURR¿QJPDWHULDOWRDFWXDOVL]HWRHOLPLQDWHFXWRIIZDVWH x 5HIHUHQFHV ³(QYLURQPHQWDOO\5HVSRQVLEOH&RQVWUXFWLRQDQG5HQRYDWLRQ+DQGERRN´ 3XEOLF:RUNVDQG*RYHUQPHQW6HUYLFHV&DQDGD 9OHFN5(³$GYDQFHG&RQVWUXFWLRQDQG'HPROLWLRQ:DVWH 0DQDJHPHQWIRU)ORULGD%XLOGHUV´8QLYHUVLW\RI)ORULGD ³:DVWH6SHF0RGHO6SHFL¿FDWLRQVIRU&RQVWUXFWLRQ:DVWH5HGXFWLRQ 5HXVH$QG5HF\FOLQJ´7ULDQJOH-&RXQFLORI*RYHUQPHQWV5HVHDUFK 7ULDQJOH3DUN1& :DVWH3UHYHQWLRQ &KDSWHU:DVWH3UHYHQWLRQ ,QWHULRU&RQVWUXFWLRQ *RDO5HGXFHRUHOLPLQDWHZDVWHGXULQJWKHLQWHULRUFRQVWUXFWLRQ SURMHFWSKDVH 0DWHULDOV$VVRFLDWHGZLWK:DVWH x x 3DFNDJLQJ 'U\ZDOO $FWLRQVDQG0HWKRGV 8QXVHGLWHPVVXFKDVGU\ZDOOYLQ\OFDUSHWDQGFDUSHWSDGGLQJ PD\EHUHWXUQHGWRYHQGRUV x ,QTXLUHDERXWOHDVHRSWLRQVRQPDWHULDOVVXFKDVFDUSHW SDGGLQJ x &KRVHSURGXFWVWKDWFRPHZLWKPLQLPDOSDFNDJLQJ x 0DLQWDLQXSWRGDWHPDWHULDORUGHULQJDQGGHOLYHU\ORJWR PLQLPL]HWKHDPRXQWRIWLPHWKHPDWHULDOVDUHVWRUHGRQVLWH WKXVUHGXFLQJWKHFKDQFHRIGDPDJH x 3D\VXEFRQWUDFWRUVEDVHGXSRQVTXDUHIRRWDJHRI¿QDOSURGXFW DVRSSRVHGWRWRWDOTXDQWLWLHVFRQVXPHGWRHQFRXUDJHHI¿FLHQW XVHRIPDWHULDOV x 2UGHULQWHULRUPDWHULDOVWRDFWXDOVL]HHJWLOHFDUSHWLQJFHLOLQJ WLOHHWF x (PSOR\DFFXUDWHFXWWLQJSURFHGXUHVDQGTXDQWLW\WDNHRIIVWR UHGXFHLQWHULRUFRQVWUXFWLRQZDVWHFDUSHWLQJYLQ\OSURGXFWV ÀRRULQJDQGFHLOLQJWLOHV x 8VHZRRGIUDPHSDQHOVIDEULFDWHGRIIVLWH 'U\ZDOO x 2UGHUGU\ZDOOLQRSWLPDOGLPHQVLRQWRPLQLPL]HFXWRIIZDVWH x 6HWDVLGHODUJHUGU\ZDOOVFUDSVIRUXVHZKHUH¿OOHUSLHFHVDUH QHHGHG x x x x 3URWHFWGU\ZDOOERDUGHGJHVFRUQHUVDQGHQGVGXULQJWUDQVSRUW FRQVWUXFWLRQDQGLQDOOKLJKWUDI¿FDUHDV 6WRUHGU\ZDOOERDUGVÀDWDQGOHYHO6WRULQJWKHPXSULJKWFRXOG GDPDJHWKHHGJHVFUHDWLQJZDVWH (QVXUHWKHDUHDZKHUHGU\ZDOOLVEHLQJLQVWDOOHGLVZDWHUWLJKWDQG :DVWH3UHYHQWLRQ x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¿OOHUSLHFHV %HIRUHFRPSOHWLQJGU\ZDOO FRQVWUXFWLRQPDNHVXUHWKHEXLOGLQJ LVZDWHUWLJKW7KLVZLOOSUHYHQWZDWHU GDPDJHWRWKHGU\ZDOOERDUGDQG SUHYHQWPROGJURZWKDVVHHQKHUHWR WKHULJKWZKLFKFDQFUHDWHDQXPEHU RIKHDOWKUHODWHGSUREOHPV :DVWH3UHYHQWLRQ 5HIHUHQFHV 2¶%ULHQ.%HVW0DQDJHPHQW3UDFWLFHVDQG7RROVIRU-RE6LWH5HF\FOLQJ DQG:DVWH5HGXFWLRQLQ+DZDLL$&RQWUDFWRU¶V:DVWH0DQDJHPHQW *XLGH7KH6WDWHRI+DZDLL ³&RQVWUXFWLRQ:DVWH0LQLPL]DWLRQ0HWKRGV´1HEUDVND(QHUJ\ 2I¿FHKWWSZZZVWDWHQHXVKRPH1(2KRPHBFRQVWIDFWVKHHWVFRQVWB ZDVWHBPLQKWP ³(QYLURQPHQWDOO\5HVSRQVLEOH&RQVWUXFWLRQDQG5HQRYDWLRQ+DQGERRN´ 3XEOLF:RUNVDQG*RYHUQPHQW6HUYLFHV&DQDGD ³+DQGOLQJDQG6WRUDJHRI*\SVXP:DOO%RDUG´1DWLRQDO*\SVXP &RPSDQ\KWWSZZZQDWLRQDOJ\SVXPFRPUHVRXUFHVRWKHUZDOOVWRUSGI 9OHFN5(³$GYDQFHG&RQVWUXFWLRQDQG'HPROLWLRQ:DVWH 0DQDJHPHQWIRU)ORULGD%XLOGHUV´8QLYHUVLW\RI)ORULGD :DVWH3UHYHQWLRQ &KDSWHU:DVWH3UHYHQWLRQ &RQYH\LQJ6\VWHPV *RDO5HGXFHRUHOLPLQDWHZDVWHZKLOHFRQVWUXFWLQJEXLOGLQJFRQYH\LQJ V\VWHPV 0DWHULDOV$VVRFLDWHGZLWK:DVWH x 3DFNDJLQJ $FWLRQVDQG0HWKRGV x x x x x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³&RQVWUXFWLRQ:DVWH0LQLPL]DWLRQ0HWKRGV´1HEUDVND(QHUJ\ 2I¿FHKWWSZZZVWDWHQHXVKRPH1(2KRPHBFRQVWIDFWVKHHWVFRQVWB ZDVWHBPLQKWP :DVWH3UHYHQWLRQ &KDSWHU:DVWH3UHYHQWLRQ 0HFKDQLFDO *RDO5HGXFHRUHOLPLQDWHZDVWHZKLOHLQVWDOOLQJRUFRQVWUXFWLQJ PHFKDQLFDOV\VWHPV 0DWHULDOV$VVRFLDWHGZLWK:DVWH x x x 3DFNDJLQJ ,QVXODWLRQ )OH[3LSH $FWLRQVDQG0HWKRGV x x x x $FFXUDWHO\HVWLPDWHDQGRUGHUWKHDPRXQWRIPDWHULDOQHHGHGWR UHGXFHZDVWHDQGFRVW 8VHDFHQWUDODUHDIRUWKHFXWWLQJDQGVWRUDJHRIVFUDSVIRU UHXVH 0HDVXUHWZLFH±FXWRQFH$FFXUDWHO\PHDVXUHDQGPDUNZKHUH PDWHULDOFXWVQHHGWREHPDGH 6DYHH[WUD+9$&PDWHULDODQGHTXLSPHQWQRWUHTXLUHGDVDWWLF VWRFNIRUXVHRQWKHQH[WMRE2WKHURSWLRQVLQFOXGHUHWXUQLQJ PDWHULDOVWRYHQGRUVRUGRQDWLQJWRQRQSUR¿WRUJDQL]DWLRQV 3URWHFWGXFWZRUNDQG+9$&HTXLSPHQWIURPGXVWGLUWGDPDJH DQGRWKHUKD]DUGVGXULQJFRQVWUXFWLRQDQGVLWHGHPRELOL]DWLRQ &RQVWUXFWDELOLW\&RQVLGHUDWLRQV x 3XUFKDVHSUHFXWDQGSUHIDEFRPSRQHQWVZKHQSRVVLEOH x 6HDUFKIRURSSRUWXQLWLHVWRUHGXFHEHQGVLQSLSLQJDQGGXFWZRUN 7KLVFDQUHGXFH¿UVWFRVWE\DOORZLQJIRUDTXLFNHULQVWDOODWLRQ DQGVDYHVRQHQHUJ\HDFKHOERZSURGXFHVDHQHUJ\ORVVWRWKH V\VWHP 3DFNDJLQJDQG0DWHULDO+DQGOLQJ x 2EWDLQHTXLSPHQWZLWKUHGXFHGSDFNDJLQJPDWHULDO x $YRLGGDPDJHGWRPHFKDQLFDOV\VWHPVSDUWVDQGSLHFHVE\ KDQGOLQJDQGVWRULQJPDWHULDOVSURSHUO\ 6DOYDJH2SSRUWXQLWLHV x ,WHPVVXFKDVKRWZDWHUWDQNV+9$&HTXLSPHQWDQGRWKHU PHFKDQLFDOHTXLSPHQWPD\EHUHXVHGRUGRQDWHG x :DVWH3UHYHQWLRQ x 6DOYDJHLWHPVVXFKDVKRWZDWHUWDQNVDQGRWKHU+9$& HTXLSPHQW7KHVHPD\UHWXUQWRWKHVXSSOLHURUDUHIXUELVKLQJ FRPSDQ\ &DVH6WXG\ :DVWH5HGXFWLRQ 'HVLJQDWLQJDVWRUDJHDUHD IRUXQXVHGGXFWZRUNLVDJUHDW ZD\WRSUHYHQWGDPDJHWRWKLV PDWHULDOEHIRUHLWLVLQVWDOOHG ,WDOVRDOORZV\RXWRNHHS DQDFFXUDWHLQYHQWRU\RIWKH SURGXFWDQGWKHUHE\SUHYHQW H[FHVVPDWHULDORUGHULQJDQG ZDVWHRQVLWH 5HIHUHQFHV ³(QYLURQPHQWDOO\5HVSRQVLEOH&RQVWUXFWLRQDQG5HQRYDWLRQ+DQGERRN´ 3XEOLF:RUNVDQG*RYHUQPHQW6HUYLFHV&DQDGD 2¶%ULHQ.%HVW0DQDJHPHQW3UDFWLFHVDQG7RROVIRU-RE6LWH5HF\FOLQJ DQG:DVWH5HGXFWLRQLQ+DZDLL$&RQWUDFWRU¶V:DVWH0DQDJHPHQW *XLGH7KH6WDWHRI+DZDLL :DVWH3UHYHQWLRQ &KDSWHU:DVWH3UHYHQWLRQ (OHFWULFDO *RDO5HGXFHRUHOLPLQDWHZDVWHZKLOHLQVWDOOLQJRUFRQVWUXFWLQJ HOHFWULFDOV\VWHPV 0DWHULDOV$VVRFLDWHGZLWK:DVWH x 3DFNDJLQJ $FWLRQVDQG0HWKRGV x x x x x x x x x x x x 2EWDLQHTXLSPHQWZLWKUHGXFHGSDFNDJLQJ 7RUHGXFHZDVWHDQGFRVWDFFXUDWHO\RUGHUWKHDPRXQWRI PDWHULDOQHHGHG 'XULQJGHPROLWLRQDQGUHQRYDWLRQ±UHXVHLWHPVVXFKDV HOHFWULFDOER[HVEUHDNHUHTXLSPHQWZDOORXWOHWVDQGRWKHU HOHFWULFDOHTXLSPHQWZKHUHSRVVLEOH 6DOYDJHLWHPVVXFKDVHOHFWULFDOER[HVEUHDNHUHTXLSPHQWZDOO RXWOHWVDQGRWKHUHOHFWULFDOHTXLSPHQWZKHUHSRVVLEOHDQGUHWXUQ WRVXSSOLHURUUHIXUELVKPHQWFRPSDQ\ 6WRUHPDWHULDOVVRWKH\DUHQRWGDPDJHG 0HDVXUHFDUHIXOO\WRDYRLGHQGFXWV 0HDVXUHWZLFH±FXWRQFHDFFXUDWHO\PHDVXUHDQGPDUNZKHUH PDWHULDOFXWVQHHGWREHPDGH 5HXVHWKHHPSW\ZLUHVSRROVIRURWKHUSXUSRVHVDQGWDVNV 7KH\PDNHDJUHDWVWRROGXULQJEUHDNWLPH2WKHUZLVHUHWXUQWR PDQXIDFWXUHU 3XUFKDVHHOHFWULFDOPDWHULDOVLQEXONZKHQIHDVLEOHWRUHGXFH SDFNDJLQJZDVWHH[DPSOH3XUFKDVHUHOHDVH¿[WXUHVWREH VKLSSHGLQEXONRQSDOOHWVZLWKRXWLQGLYLGXDOSDFNDJLQJ 6DYHH[WUDHOHFWULFDOFRPSRQHQWV¿[WXUHVRXWOHWVDQGRWKHU HOHFWULFDOHTXLSPHQWIRUWKHQH[WMRE,WLVDOVRLPSRUWDQWWR SURSHUO\VWRUHWKLVPDWHULDOVRLWLVQRWGDPDJHGRQVLWHRUGXULQJ WUDQVSRUWDWLRQ 3URWHFWHOHFWULFDOHTXLSPHQWDQGZLULQJIURPGXVWGLUWGDPDJH DQGRWKHUKD]DUGVGXULQJFRQVWUXFWLRQDQGVLWHGHPRELOL]DWLRQ 5HPRYHH[FHVVGU\ZDOOEXLOGXSFKXQNVDQGVFUDSHVIURPZDOO RXWOHWVXSRQFRPSOHWLRQRIGU\ZDOOLQJDFWLYLWLHV :DVWH3UHYHQWLRQ x 5HSODFHWHPSRUDU\LQFDQGHVFHQWOLJKWVZLWKORQJHUOLIHDQGPRUH GXUDEOHÀXRUHVFHQWOLJKWV7KLVZLOOUHGXFHRQVLWHWHPSRUDU\ OLJKWLQJUHSODFHPHQWFRVWVDQGWHPSRUDU\SRZHUFRQVXPSWLRQ &DVH6WXG\ :DVWH5HGXFWLRQ 5HSODFLQJWHPSRUDU\LQFDQGHVFHQW OLJKWVZLWKÀXRUHVFHQWOLJKWVPD\ FRVWPRUHLQLWLDOO\EXWOLIHF\FOHFRVWV VDYLQJVFDQEHUHDOL]HGEHFDXVH ÀXRUHVFHQWOLJKWVXVHOHVVHQHUJ\ DQGKDYHORQJHUOLIHVSDQVWKHQ LQFDQGHVFHQWOLJKWV$GGLWLRQDOO\ ÀXRUHVFHQWOLJKWVDUHPRUHGXUDEOH DQGEULJKWHUSURYLGLQJDZHOOOLWVDIH ZRUNLQJHQYLURQPHQW 5HIHUHQFHV ³(QYLURQPHQWDOO\5HVSRQVLEOH&RQVWUXFWLRQDQG5HQRYDWLRQ+DQGERRN´ 3XEOLF:RUNVDQG*RYHUQPHQW6HUYLFHV&DQDGD :DVWH3UHYHQWLRQ &KDSWHU:DVWH$YRLGDQFH ,QIRUPDWLRQ7HFKQRORJ\ *RDO5HGXFHRUHOLPLQDWHH[FHVVFRPPXQLFDWLRQDQG,7LQIUDVWUXFWXUH ZDVWHRQVLWH $FWLRQVDQG0HWKRGV 2EWDLQHTXLSPHQWDQGPDWHULDOVZLWKUHGXFHGSDFNDJLQJ x $FFXUDWHO\RUGHUWKHDPRXQWRIPDWHULDOQHHGHG x 6WRUHPDWHULDOVDQGHTXLSPHQWVRWKH\DUHQRWGDPDJHG x 3XUFKDVHSUHIDEPDWHULDOVZKHQSRVVLEOH x 6DYHOHIWRYHUPDWHULDOVDQGHTXLSPHQWIRUWKHQH[WMRE,WHPV OLNHFDEOHWUD\VH[WUDGDWDFDEOHDQGGDWDFRQQHFWLRQVFDQEH OHIWZLWKWKHRZQHUIRUWKHLUUHSODFHPHQWVWRFNDQGXVH x 7KHXVHRIPXOWLFRQGXFWRUSRZHU+RPH5XQFDEOHVFDQLPSURYH FDEOHPDQDJHPHQWDQGUHGXFHLQVWDOODWLRQFRPSOH[LW\ x 6XJJHVWXVLQJDUDLVHGÀRRUV\VWHP'RLQJVRFDQUHGXFH GDWDDQGFRPPXQLFDWLRQLQVWDOODWLRQFRVWVGXULQJLQLWLDOEXLOG RXWDQGDOORZIRUHDVLHUPRUHHFRQRPLFDOPRYHVDQGVSDFH UHFRQ¿JXUDWLRQ :DVWH5HGXFWLRQ7LSV:KHQ,QVWDOOLQJ'DWD&DEOH x 'RQRWXQWZLVWWZLVWHGSDLUFDEOHVPRUHWKDQRQHKDOILQFKEHIRUH LQVHUWLQJWKHP x 'RQRWVWULSRIIPRUHWKDQRQHLQFKRILQVXODWLRQIURPFRSSHUZLUH LQWZLVWHGSDLUFDEOHV x 7HVWHDFKVHJPHQWRIFDEOLQJZLWKFDEOHWHVWHU7KLVZLOOSUHYHQW UHZRUNDQGFDEOHZDVWHLIDIDXOW\FDEOHLVGLVFRYHUHGRQFHWKH ZRUNLVFRPSOHWHG x $YRLGOD\LQJFDEOHDFURVVDÀRRUZKHUHLWPD\VXVWDLQGDPDJH x ,QVWDOOFDEOHVDWOHDVWWKUHHIHHWDZD\IURPÀXRUHVFHQWOLJKWVRU RWKHUVRXUFHVRI(OHFWUR0DJQHWLF,QWHUIHUHQFH(0, x x $OZD\VOHDYHVRPHVODFNLQFDEOHUXQV x (QVXUHFDEOHVKHDWKLVSOHQXPUDWHGLI\RXDUHUXQQLQJFDEOHLQ DVXEÀRRURUDERYHWKHFHLOLQJ :DVWH3UHYHQWLRQ 5HIHUHQFHV ³,QWHOOLJHQW)ORRU´$)&&DEOH6\VWHPVKWWSZZZDIFZHEFRP DFVDFVBSURGBLQWHOOKWP$QFKRU /\RQ35³7UDQVPLVVLRQ%DVLFVDQG1HWZRUNLQJ0HGLD &KDSWHU´3DW5DMVNL/\RQKWWSIDFXOW\QKPFFGHGXSO\RQLWQZ SRZHUSRLQWVFKDSWHUSDUWFKESGI :DVWH3UHYHQWLRQ &KDSWHU:DVWH3UHYHQWLRQ (TXLSPHQW *RDO5HGXFHRUHOLPLQDWHHTXLSPHQWZDVWHGXULQJFRQVWUXFWLRQ $FWLRQVDQG0HWKRGV x x x x x x x x 3URSHUO\PDLQWDLQDQGXVHFRQVWUXFWLRQHTXLSPHQWIRULWV LQWHQGHGSXUSRVH 0DLQWDLQYHKLFOHHPLVVLRQVDQGÀXLGOLQHVWRUHGXFHJDVHRXV SROOXWDQWHPLVVLRQVDQGÀ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³&RQVWUXFWLRQ:DVWH0LQLPL]DWLRQ0HWKRGV´1HEUDVND(QHUJ\ 2I¿FHKWWSZZZVWDWHQHXVKRPH1(2KRPHBFRQVWIDFWVKHHWVFRQVWB ZDVWHBPLQKWP ³&RVW6DYLQJV7LSV3DUW,,,1RQ6WRUP:DWHU0DQDJHPHQWDQG 6HGLPHQW7UDFNLQJ&RQWUROV´&DOWUDQV6WRUPZDWHU0DQDJHPHQW 3URJUDPKWWSZZZGRWFDJRYKTHQYVWRUPZDWHUSXEOLFDWFRQVWB KWP 2¶%ULHQ.%HVW0DQDJHPHQW3UDFWLFHVDQG7RROVIRU-RE6LWH5HF\FOLQJ DQG:DVWH5HGXFWLRQLQ+DZDLL$&RQWUDFWRU¶V:DVWH0DQDJHPHQW *XLGH7KH6WDWHRI+DZDLL :DVWH3UHYHQWLRQ &KDSWHU:DVWH3UHYHQWLRQ )LQLVKHV *RDO5HGXFHRUHOLPLQDWH¿QLVKZDVWHGXULQJFRQVWUXFWLRQ 0DWHULDOV$VVRFLDWHGZLWK:DVWH x 3DFNDJLQJ $FWLRQVDQG0HWKRGV 5HMHFWYHQGRUVDPSOHV\RXGRQ¶WQHHG x 6WRUHUHPDLQLQJÀRRUDQGFHLOLQJWLOHDVDWWLFVWRFNRUUHWXUQLWWR WKHYHQGRURUGRQDWHLWWRQRQSUR¿WRUJDQL]DWLRQV 6LWHORJLVWLFV x $GRSWD³¿UVWLQ¿UVWRXW´SROLF\WRSUHYHQW¿QLVKPDWHULDOVIURP EHFRPLQJRXWGDWHG6HHIROORZLQJ&DVH6WXG\ x 8VHDFHQWUDOFXWWLQJDUHDIRUFDUSHWWLOHVDQGYLQ\OEDVH 0DWHULDO6WRUDJH x 3URWHFW¿QLVKPDWHULDOVFDUSHWVWLOHEDVHVDQGWULPIURP GDPDJHGXULQJIDFXOW\PRYHLQDQGVLWHGHPRELOL]DWLRQ x 6WRUDJHDUHDVIRUOLTXLGKD]DUGRXVPDWHULDOVVKRXOGEH LPSHUYLRXVDQGEHUPHGWRSUHYHQWUXQRQDQGUXQRII&RQFUHWH VWRUDJHSDGVZLWKFXUEVRUEHUPVDUHJHQHUDOO\PRUHFRVW HIIHFWLYHWKDQSODVWLFOLQHGVWRUDJHDUHDVHVSHFLDOO\IRUSURMHFWV RYHURQH\HDULQGXUDWLRQ 5HGXFH3DFNDJLQJ x 8VHVXSSOLHUVZLWKEX\EDFNSROLFLHV x 3URGXFWVVXFKDVSDLQWMRLQWFRPSRXQGDQGFDXONLQJFDQEH SXUFKDVHGLQEXONWRUHGXFHSDFNDJLQJZDVWH 5HXVH6DOYDJHDQG'RQDWH5HIHUHQFH&K x 'RQDWHOHIWRYHU¿QLVKPDWHULDOVWRQRQSUR¿WRUJDQL]DWLRQV x $OORZHPSOR\HHVWRWDNHKRPHH[FHVVFDUSHWVFUDSV x x x 5HXVHVSHQWVROYHQWVIRUFOHDQLQJ 5HXVHPDWHULDOEXFNHWVWXEHVDQGSURGXFWSDFNDJLQJIRURWKHU WDVNVLISRVVLEOH :DVWH3UHYHQWLRQ &RQVWUXFWDELOLW\&RQVLGHUDWLRQV x 'HVLJQ6XJJHVWLRQ(OLPLQDWHXVHRIDFRXVWLFDOFHLOLQJWLOHDQG H[SRVHFHLOLQJWRPLQLPL]HPDWHULDOXVH &DVH6WXG\ :DVWH5HGXFWLRQ $¿UVWLQ¿UVWRXW¿QLVK PDWHULDOSROLF\LVDVLPSOH ZD\WRUHGXFH¿QLVKPDWHULDO ZDVWH7KLVVLPSO\PHDQV\RX ¿UVWXVHWKHPDWHULDOVVWDJHG RQVLWHORQJHVW'RQRWVWDFN QHZO\GHOLYHUHGPDWHULDOVRQ WRSRIWKRVHDOUHDG\VWDJHG RQVLWHZKLFKSUHYHQWV³ROGHU´ PDWHULDOVIURPEHLQJUHDGLO\ DFFHVVLEOH$GGLWLRQDOO\LI\RX FDQFRRUGLQDWHMXVWLQWLPH -,7GHOLYHULHVWRWKHVLWHH[FHVV¿QLVKPDWHULDOZLOOQRWVWDFNXSDQG VLWHDQGH[WUD¿QLVKPDWHULDOZLOOQRWJRWRZDVWH 5HIHUHQFHV ³&RVW6DYLQJV7LSV3DUW,,,1RQ6WRUP:DWHU0DQDJHPHQWDQG 6HGLPHQW7UDFNLQJ&RQWUROV´&DOWUDQV6WRUPZDWHU0DQDJHPHQW 3URJUDPKWWSZZZGRWFDJRYKTHQYVWRUPZDWHUSXEOLFDWFRQVWB KWP 2¶%ULHQ.%HVW0DQDJHPHQW3UDFWLFHVDQG7RROVIRU-RE6LWH5HF\FOLQJ DQG:DVWH5HGXFWLRQLQ+DZDLL$&RQWUDFWRU¶V:DVWH0DQDJHPHQW *XLGH7KH6WDWHRI+DZDLL :DVWH3UHYHQWLRQ &KDSWHU5HF\FOLQJ *RDO7RGLYHUWZDVWHIURPWKHODQG¿OO E\UHF\FOLQJRIFRQVWUXFWLRQGHEULV$ PLQLPXPUHTXLUHPHQWRILVVSHFL¿HGRQ PRVW3(15(1&FRQWUDFWV %HQH¿WV x x x 5HGXFWLRQRIZDVWHDWWKHODQG¿OO $YRLGDQFHRIWLSSLQJIHHV 5HFHLSWRIWD[UHEDWHVLQFHUWDLQDUHDV $FWLRQVDQG0HWKRGV x x x x x $VVHVVSUREDEOHZDVWHVWUHDPSULRUWRFRQVWUXFWLRQ8VHWKH ZDVWHPDQDJHPHQWKLHUDUFK\OLVWHGEHORZWRGHWHUPLQHKRZWR PDQDJHFRQVWUXFWLRQZDVWH 5HGXFHWKHZDVWHJHQHUDWHG5HIHUHQFH&K 5HXVHPDWHULDOVDQGSURGXFWV5HIHUHQFH&K 5HF\FOHDVPXFKDVSRVVLEOH &RPSRVWLQJ %XUQLQJ /DQG¿OO :RUNZLWKVXEFRQWUDFWRUVWRGHWHUPLQHWKHPRVWHIIHFWLYHZD\V WRUHF\FOHZDVWH5HI6HFWLRQ ,QFRUSRUDWHUHF\FOLQJSURFHGXUHVDQGUHTXLUHPHQWVLQWRFRQWUDFW ODQJXDJH5HI&K 3URYLGHWUDLQLQJIRUDOOVXSHUYLVRUVDQGZRUNHUV (PSKDVL]HWKHLPSRUWDQFHRIDFOHDQVLWH8VHDFRQWLQXRXV FOHDQXSSURFHVVDQGRUDZUDSXSSURFHGXUHDWWKHHQGRIWKH GD\ x &DOFXODWHODQG¿OOGLYHUVLRQUDWHVE\ZHLJKW x 3XEOLFL]H\RXUUHVXOWVDWWKHMREVLWHDQGZLWKLQ\RXURUJDQL]DWLRQ 7KLVFDQVSDUNFRPSHWLWLRQEHWZHHQWUDGHVRUSURMHFWVUHVXOWLQJ LQHYHQKLJKHUOHYHOVRIUHF\FOLQJ3URYLGHLQFHQWLYHVWRIXUWKHU LQFUHDVHWKHUHF\FOLQJHIIRUWV .QRZWKHOHJDOFRPSOLDQFHVFRQFHUQLQJWKHW\SHDQGDPRXQWRI x 5HF\FOLQJ x ZDVWHWKDWLVJHQHUDWHG .HHSKD]DUGRXVZDVWHVHSDUDWH'RQRWPL[GLIIHUHQWZDVWHV &DVH6WXG\ &RPP2I¿FH%XLOGLQJ6)UHPRGHO6)DGGLWLRQ :LWKRXWVORZLQJGRZQWKHLUVFKHGXOH+6:ULJKWPDQDJHGWRUHF\FOH WRQVRI&RQVWUXFWLRQDQG'HPROLWLRQZDVWH7KRXJKWKH\ZHQW DERXWWKHMREWKRXJKWIXOO\WKH\GLGQ¶WWDNHH[WUDRUGLQDU\PHDVXUHV 5HF\FOLQJDQGUHGXFLQJZDVWHGRHVQRWKDYHWRVORZGRZQDIDVWWUDFN MRE7KHEUHDNGRZQRIFRVWVDYLQJVDQGPDWHULDOVUHF\FOHGZHUHDV IROORZV x UHF\FOLQJUDWHLQWKHFRQVWUXFWLRQSKDVHVDYLQJ x UHF\FOLQJUDWHIRUFRPELQHG&'SKDVHVZLWKWRWDOFRVW VDYLQJRI x WRQVRIZRRGUHF\FOHG x WRQVRIFRQFUHWHUHF\FOHG 6RXUFH$GYDQFHG&RQVWUXFWLRQDQG'HPROLWLRQ:DVWH0DQDJHPHQWIRU)ORULGD%XLOGHUV 5HIHUHQFHV ³&''HEULV&RQVWUXFWLRQDQG'HPROLWLRQ'HEULV´ (QYLURQPHQWDO3URWHFWLRQ$JHQF\KWWSZZZHSDJRYHSDRVZHUQRQKZ GHEULV ³'5$)7)HGHUDO*XLGHWR*UHHQ&RQVWUXFWLRQ´(QYLURQPHQWDO 3URWHFWLRQ$JHQF\KWWSZZZZEGJRUJGHVLJQJUHHQVSHFSKS 5DZOLQJV5³(QYLURQPHQWDO5XOHVRI7KXPE´7KH%XLOGLQJ 6HUYLFHV5HVHDUFKDQG,QIRUPDWLRQ$VVRFLDWLRQ%UDFKQHOO%HUNVKLUH 8. 9OHFN5(³$GYDQFHG&RQVWUXFWLRQDQG'HPROLWLRQ:DVWH 0DQDJHPHQWIRU)ORULGD%XLOGHUV´8QLYHUVLW\RI)ORULGD 5HF\FOLQJ &KDSWHU5HF\FOLQJ 3ODQQLQJ *RDO7RGLYHUWZDVWHIURPWKHODQG¿OOE\UHF\FOLQJRI FRQVWUXFWLRQGHEULV$PLQLPXPUHTXLUHPHQWRILVVSHFL¿HGRQPRVW 3(15(1&FRQWUDFWV .H\,VVXHV x x x x /RFDOUHF\FOLQJPDUNHW (GXFDWLRQ 0DQDJHPHQW &RVW $FWLRQVDQG0HWKRGV x x x 'HVLJQDWHDSHUVRQDQGRUWHDPWRPDQDJHWKHGHWDLOVRI FUHDWLQJDQGLPSOHPHQWLQJWKHZDVWHPDQDJHPHQWSURJUDP ,QWHJUDWHZDVWHPDQDJHPHQWLQWRWKHVDIHW\SURJUDP &RQWLQXRXVHGXFDWLRQDQGDZDUHQHVVDUHFUXFLDOWRERWK LQLWLDWLYHV 6XUYH\WKHVLWHEHIRUHGHPROLWLRQEHJLQV,GHQWLI\VDOYDJH UHF\FODEOHDQGKD]DUGRXVPDWHULDOV 'HYHORSD&RQVWUXFWLRQ:DVWH0DQDJHPHQW3ODQ x ,GHQWLI\LWHPVIRUUHXVHVDOYDJHDQGUHF\FOLQJ x 3ODQIRUSURWHFWLRQGLVPDQWOLQJKDQGOLQJVWRULQJDQG WUDQVSRUWLQJRIVDOYDJHRUUHF\FOHGPDWHULDOV x 6FKHGXOHLQWLPHIRUUHPRYDORIVDOYDJHDEOHDQGUHF\FOHG PDWHULDOV 3ODQIRU5HF\FODEOH0DWHULDOV x ,QFOXGHUHF\FOLQJUHTXLUHPHQWVLQWKHVWDWHPHQWRIZRUN x ,QYHVWLJDWHUHPRYDODQGVHSDUDWLRQWHFKQLTXHV x x 3ODQIRUFROOHFWLRQSURFHGXUHVDQGDOORFDWHVSDFHRQVLWH 5HF\FOLQJ 4XHVWLRQVIRU6DOYDJHDQG5HF\FOLQJ&RPSDQLHV x :KDWLWHPVRUPDWHULDOVGRWKH\DFFHSW" x :LOOWKH\DFFHSWGURSRIIVDWWKHLUORFDWLRQ" x :LOOWKH\SURYLGHGURSER[HV" x :LOOWKH\FRPHWRWKHVLWHWRUHPRYHWKHLWHPVRUPDWHULDOV" x :KHQFDQWKH\FRPHDQGKRZORQJZLOOWKHZDVWHUHPRYDOWDNH" x :LOOWKH\YLVLWWKHVLWHDQGSODFHDELG" x :LOOWKH\SD\IRUWKHLWHPVRUPDWHULDOV" x :KDWDUHWKHFKDUJHVSD\PHQWVIRUSLFNXSVRUGURSRIIV" x &DQWKHFRPSDQ\SURYLGHDUHFHLSWIRUWD[GHGXFWLRQRIGRQDWHG LWHPV" (VWLPDWHWKH&RVWVDQG6DYLQJV x 'HWHUPLQHGLVSRVDOFRVWVKDXOLQJFRVWVDQGUHYHQXHJHQHUDWHG x &RPSDUHWKHFRVWRIUHXVLQJPDWHULDOVWRSXUFKDVLQJQHZLWHPV x ,VWKHUHDIXQFWLRQRUDWKHLVWLFYDOXHRIKDYLQJUHXVHGPDWHULDOV" x $UHWKHUHDQ\PDUNHWLQJRUSXEOLFUHODWLRQVEHQH¿WV" x :KDWLVWKHWD[EHQH¿WWRGRQDWLQJLWHPVWRFKDULWLHV" ,QYROYH6XEFRQWUDFWRUVDQG6XSSOLHUV x 5HTXLUHVXEFRQWUDFWRUVDQGVXSSOLHUVWRXVHWKHUHF\FOLQJDQG GLVSRVDOELQVRQVLWH x $OWHUQDWLYHO\DVNWKHVXSSOLHUVDQGVXEFRQWUDFWRUVWRWDNHEDFN DQGUHF\FOHWKHLURZQZDVWHDQGUHTXLUHZULWWHQUHSRUWV x ,QYROYHVXEFRQWUDFWRUVLQFKRRVLQJFRQYHQLHQWORFDWLRQVIRU GXPSVWHUVDQGELQVIRUGLIIHUHQWSKDVHVRIFRQVWUXFWLRQ x &KDUJHDIHHWRWKRVHZKRFRQWLQXDOO\FRQWDPLQDWHWKHUHF\FOLQJ ELQV 0DNH5HF\FOLQJ&RQYHQLHQW x 3ODFHUHF\FOLQJGXPSVWHUVDVFORVHWRWKHZRUNDUHDDVSRVVLEOH x &HQWUDOL]HFXWWLQJRSHUDWLRQVWRUHGXFHZDVWHDQGVLPSOLI\ VRUWLQJ x $OZD\VSURYLGHDFRQWDLQHUIRUWUDVKQH[WWRWKHUHF\FOLQJ FRQWDLQHU x &UHDWHPDSVRIWKHMREVLWHWRVKRZKDXOHUVH[DFWO\ZKHUHWR SODFHDQGSLFNXSWKHLUGXPSVWHUV 5HF\FOLQJ 3URPRWLRQDQG(GXFDWLRQ x ,QWHJUDWHUHF\FOLQJWUDLQLQJLQWRWKHVDIHW\HGXFDWLRQRUGHVLJQD VHSDUDWHUHF\FOLQJHGXFDWLRQSURJUDP x &UHDWHDQDPHRUVORJDQIRUWKHSURJUDPDQGXVHLQH[SHQVLYH UHZDUGVVXFKDVKDWVDQGKDUGKDWVWLFNHUVWRSURYLGHLQFHQWLYHV x 6KDUHWKHSURMHFW¶VVXFFHVV.HHSVXEFRQWUDFWRUVDQGWKHFUHZ LQIRUPHGDQGXSGDWHGRQWKHSURJUHVV x %HSRVLWLYH:KHQVXEFRQWUDFWRUVDUHPRWLYDWHGDQGXQGHUVWDQG WKHJRDOVWKH\ZLOO¿JXUHRXWPRUHFUHDWLYHZD\VWRRYHUFRPH REVWDFOHVDQGZRUNPRUHHI¿FLHQWO\ x ,QFOXGHHYHU\RQHLQWKHSURFHVVE\HQFRXUDJLQJVXJJHVWLRQVIRU PRUHHI¿FLHQWFRQVWUXFWLRQPHWKRGV &KHFNOLVWRI5HF\FODEOH%XLOGLQJ0DWHULDOV $FRXVWLFDOFHLOLQJWLOHV )OXRUHVFHQWOLJKWVDQGEDOODVW $VSKDOW /DQGFOHDULQJGHEULVYHJHWDWLRQVWXPSDJHGLUW $VSKDOW6KLQJOHV 0HWDOVIHUURXVDQGQRQIHUURXV &DUSHWDQGFDUSHWSDG 3DLQWFDQVDQGSDLQWXVHDKD]DUGRXVZDVWHRXWOHW &DUGERDUG 3ODVWLF¿OPVKHHWLQJVKULQNZUDSSDFNDJLQJ &RQFUHWH :LQGRZJODVV 'U\ZDOO :RRGQDLOVDQGVWDSOHVDOORZHG *ODVVFRORUHGJODVVDOORZHG ,QVXODWLRQ 5HF\FOLQJ 5HIHUHQFHV ³&RQWUDFWRUV*XLGH6HDWWOH.LQJ&RXQW\6DYH0RQH\DQG5HVRXUFHV WKURXJK-RE6LWH5HF\FOLQJDQG:DVWH3UHYHQWLRQ´.LQJ&RXQW\ 6ROLG:DVWH'LYLVLRQ6HDWWOHKWWSGQUPHWURNFJRYVZGEL]SURJVXVB EXLOG&RQ*XLGHSGI ³'5$)7)HGHUDO*XLGHWR*UHHQ&RQVWUXFWLRQ´(QYLURQPHQWDO 3URWHFWLRQ$JHQF\KWWSZZZZEGJRUJGHVLJQJUHHQVSHFSKS ³+RZ7R*XLGHV´$OEHUWD(QYLURQPHQWKWWSZZZJRYDEFD HQYZDVWHDRZFUGKRZWRKWPO 2¶%ULHQ.³%HVW0DQDJHPHQW3UDFWLFHVDQG7RROVIRU-RE6LWH5HF\FOLQJ DQG:DVWH5HGXFWLRQLQ+DZDLL´7KH6WDWHRI+DZDLL 6LPSVRQ6³&RQVWUXFWLRQ:DVWH0DQDJHPHQW*XLGH0HWKRGV WR6DYH0RQH\DQG5HVRXUFHV´6WDWHRI:DVKLQJWRQ'HSDUWPHQWRI *HQHUDO$GPLQLVWUDWLRQ2O\PSLD:$ 9OHFN5(³$GYDQFHG&RQVWUXFWLRQDQG'HPROLWLRQ:DVWH 0DQDJHPHQWIRU)ORULGD%XLOGHUV´8QLYHUVLW\RI)ORULGD 5HF\FOLQJ &KDSWHU5HF\FOLQJ *HQHUDO&RQGLWLRQV *RDO7RGLYHUWZDVWHIURPWKHODQG¿OOE\UHF\FOLQJRIFRQVWUXFWLRQ GHEULV$PLQLPXPUHTXLUHPHQWRILVVSHFL¿HGRQPRVW3(15(1& FRQWUDFWV $FWLRQVDQG0HWKRGV 7DONWRWKHFOLHQWDERXWLGHDVIRUSXEOLFDXFWLRQVIRUROG DSSOLDQFHVDQGRWKHUUHXVDEOHPDWHULDO x .HHSWKHFUHZDQGSXEOLFXSGDWHGDERXWSURJUHVVLQUHF\FOLQJ JRDOV x +DYHVHSDUDWHELQVIRUFROOHFWLQJGLIIHUHQWW\SHVRIPDWHULDO x &OHDUO\LGHQWLI\ER[HVIRUUHF\FOLQJ x &OHDUO\PDUNVWRUDJHDUHDVDQGSRVWVWRUDJHUHFRPPHQGDWLRQV 8VHELOLQJXDOVLJQDJHDQGRUSLFWRULDOJUDSKLFV x 0DLQWDLQFDUHIXOUHFRUGVRIDOOWKHPDWHULDODQGZDVWHSURGXFHG x 6HSDUDWHZDVWHDQGVWRUHWKHPLQUHODWLYHO\FOHDQFRQGLWLRQV x 0DNHVXUHWKDWWKHELQVDUHIXOODQGSDFNHGEHIRUHPRYLQJRQWR QHZRQHV x 0DQDJHELQVWRPDLQWDLQOHDNDJHDQGVSLOODJH x 0DLQWDLQDGHGLFDWHGDUHDIRUUHF\FOLQJPHWDOFDUGERDUG GU\ZDOOZRRGDQGRWKHUUHF\FODEOHZDVWH x 5HJXODUO\FKHFNWKHUHF\FOHELQVIRULPSURSHUO\VRUWHGPDWHULDO x .HHSKD]DUGRXVZDVWHVHSDUDWH'RQRWPL[GLIIHUHQWZDVWHV &RQVLVWHQWDQG2QJRLQJ$FWLRQV x 8VHVDIHW\PHHWLQJVVLJQDJHDQGVXEFRQWUDFWRUDJUHHPHQWVWR FRPPXQLFDWHWKHJRDOVRIUHF\FOLQJZDVWHSUHYHQWLRQ&KDSWHU DQGHQYLURQPHQWDOLVVXHV x 5HTXLUHVXEFRQWUDFWRUVDQGVXSSOLHUVWRXVHWKHUHF\FOLQJDQG GLVSRVDOELQVRQVLWH 0DNH5HF\FOLQJ&RQYHQLHQW 3ODFHUHF\FOLQJGXPSVWHUVDVFORVHWRWKHZRUNDUHDDVSRVVLEOH x &HQWUDOL]HFXWWLQJRSHUDWLRQVWRUHGXFHZDVWHDQGVLPSOLI\ VRUWLQJ x $OZD\VSURYLGHDFRQWDLQHUIRUWUDVKZLWKUHF\FOLQJFRQWDLQHUV 5HF\FOLQJ x x x &UHDWHPDSVRIWKHMREVLWHWRVKRZKDXOHUVH[DFWO\ZKHUHWR SODFHDQGSLFNXSWKHLUGXPSVWHUV ,WHPVWR5HF\FOH x 5HIHUHQFH6HFWLRQIRUFKHFNOLVW 5HIHUHQFHV 2¶%ULHQ.³%HVW0DQDJHPHQW3UDFWLFHVDQG7RROVIRU-RE6LWH5HF\FOLQJ DQG:DVWH5HGXFWLRQLQ+DZDLL´7KH6WDWHRI+DZDLL 5DZOLQJV5³(QYLURQPHQWDO5XOHVRI7KXPE´7KH%XLOGLQJ 6HUYLFHV5HVHDUFKDQG,QIRUPDWLRQ$VVRFLDWLRQ%UDFKQHOO%HUNVKLUH 8. :LOVRQ$'HDOLQJZLWK&RQVWUXFWLRQ:DVWH,QQRYDWLYH6ROXWLRQV IRUD7RXJK3UREOHP(QYLURQPHQWDO%XVLQHVV1HZV 5HF\FOLQJ &KDSWHU5HF\FOLQJ 'HPROLWLRQDQG$EDWHPHQW *RDO7RGLYHUWZDVWHIURPWKHODQG¿OOE\UHF\FOLQJRIFRQVWUXFWLRQ GHEULV$PLQLPXPUHTXLUHPHQWRILVVSHFL¿HGRQPRVW3(15(1& FRQWUDFWV $FWLRQVDQG0HWKRGV 6RUWDQGDYRLGPL[LQJRIGHPROLWLRQZDVWH x &OHDQFRQFUHWHFKXQNVEULFNVEURNHQEORFNVDQGRWKHUPDVRQU\ UXEEOHFDQEHEXULHGRQVLWHGXULQJIRXQGDWLRQEDFN¿OOLQJRU UHF\FOHG x 6HSDUDWHRXWPHWDOUDGLDWRUVJUDWHVSLSLQJDOXPLQXPVLGLQJ DQGROGDSSOLDQFHVIRUVDOYDJHDQGUHF\FOLQJ x 8VHWKHLQWHUQHWDQGLWVSRZHURIH[FKDQJHWRPDUNHWWKH VDOYDJHGLWHPVRIDGHPROLVKHGEXLOGLQJ6HH&K x :DONWKURXJKWKHVLWHEHIRUHGHFRQVWUXFWLRQZLWKDQH[SHULHQFHG FRQWUDFWRUWRLGHQWLI\SRWHQWLDOUHF\FODEOHLWHPV x 9DULRXVPHWKRGVRIGLVPDQWOLQJVKRXOGEHFRQVLGHUHGLQDZLGHU VHQVHHJKDQGPDFKLQHH[SORVLYHVDQGFXWWLQJ x 5HPRYHUHF\FODEOHPDWHULDOVEHIRUHPDVVGHPROLWLRQ &RQVLVWHQWDQG2QJRLQJ$FWLRQV x 8VHVDIHW\PHHWLQJVVLJQDJHDQGVXEFRQWUDFWRUDJUHHPHQWVWR FRPPXQLFDWHWKHJRDOVRIUHF\FOLQJZDVWHSUHYHQWLRQ&KDSWHU DQGHQYLURQPHQWDOLVVXHV x 5HTXLUHVXEFRQWUDFWRUVDQGVXSSOLHUVWRXVHWKHUHF\FOLQJDQG GLVSRVDOELQVRQVLWH 0DNH5HF\FOLQJ&RQYHQLHQW x 3ODFHUHF\FOLQJGXPSVWHUVDVFORVHWRWKHZRUNDUHDDVSRVVLEOH x &HQWUDOL]HFXWWLQJRSHUDWLRQVWRUHGXFHZDVWHDQGVLPSOLI\ VRUWLQJ x x $OZD\VSURYLGHDFRQWDLQHUIRUWUDVKZLWKWKHUHF\FOLQJFRQWDLQHU x &UHDWHPDSVRIWKHMREVLWHWRVKRZKDXOHUVH[DFWO\ZKHUHWR SODFHDQGSLFNXSWKHLUGXPSVWHUV 5HF\FOLQJ ,WHPVWR5HF\FOH x 5HIHUHQFH6HFWLRQIRUDFKHFNOLVW &DVH6WXG\ 3LWWVEXUJK&RQYHQWLRQ&HQWHU 7KH3LWWVEXUJK&RQYHQWLRQ&HQWHUXVHGWKHZHEVLWHZZZ IUHHPDUNHWVFRPWRVHOOWKHVDOYDJHDEOHLWHPVGXULQJLWV GHFRQVWUXFWLRQ7KHRQOLQHDXFWLRQVWDUWHGORQJEHIRUHDEROWZDV SXOOHGRUDEULFNZDVGLVORGJHGDWDYHU\ORZFRVWDQGHQHUJ\ 1RWH7KH/RDGLQJ'RFNLQWKH%DOWLPRUH0DU\ODQGSURYLGHVWD[ GHGXFWLRQVUDWKHUWKDQSD\PHQWIRUPDWHULDOGURSSHGRII 7HO± 5HIHUHQFHV 2¶%UHLQ.³%HVW0DQDJHPHQW3UDFWLFHVDQG7RROVIRU-RE6LWH5HF\FOLQJ DQG:DVWH5HGXFWLRQLQ+DZDLL´7KH6WDWHRI+DZDLL 5DZOLQJV5³(QYLURQPHQWDO5XOHVRI7KXPE´7KH%XLOGLQJ 6HUYLFHV5HVHDUFKDQG,QIRUPDWLRQ$VVRFLDWLRQ%UDFKQHOO%HUNVKLUH 8. 9OHFN5(³$GYDQFHG&RQVWUXFWLRQDQG'HPROLWLRQ:DVWH 0DQDJHPHQWIRU)ORULGD%XLOGHUV´8QLYHUVLW\RI)ORULGD :LOVRQ$'HDOLQJZLWK&RQVWUXFWLRQ:DVWH,QQRYDWLYH6ROXWLRQV IRUD7RXJK3UREOHP(QYLURQPHQWDO%XVLQHVV1HZV 5HF\FOLQJ &KDSWHU5HF\FOLQJ 6LWH:RUN *RDO7RGLYHUWZDVWHIURPWKHODQG¿OOE\UHF\FOLQJRIFRQVWUXFWLRQ GHEULV$PLQLPXPUHTXLUHPHQWRILVVSHFL¿HGRQPRVW3(15(1& FRQWUDFWV $FWLRQVDQG0HWKRGV %UDQFKHVIURPWUHHVDQGVKUXEVWKDWDUHFOHDUHGGXULQJVLWHZRUN FDQEHFKLSSHGDQGXVHGLQODQGVFDSLQJ x 1HYHUEXUQWUHDWHGZRRG x 3UHVHUYHH[LVWLQJYHJHWDWLRQDQGUHXVHDVODQGVFDSLQJ x 7U\WRDYRLGFXWWLQJGRZQWUHHVXQQHFHVVDULO\ x $YRLGPDMRUFKDQJHVWRVXUIDFHJUDGH x 5HXVHRQVLWHVRLOVIRU¿OORSHUDWLRQV x 5HXVHRQVLWHURFNVIRU¿OORUVLWH¿QLVKHVDHVWKHWLFV x 8VHGHWDLOHGSODQVWRHOLPLQDWHZDVWHIXOFXWVDQG¿OOV x 8VHEURNHQRUFUXVKHGFRQFUHWHSLHFHVDVDEDFN¿OOOD\HU:KHQ ¿OOLQJFORVHWRWKHIRXQGDWLRQEHFDUHIXORIZDWHUSURR¿QJDQGWKH RWKHUPHPEUDQHVXVHG &RQVLVWHQWDQG2QJRLQJ$FWLRQV x 8VHVDIHW\PHHWLQJVVLJQDJHDQGVXEFRQWUDFWRUDJUHHPHQWVWR FRPPXQLFDWHWKHJRDOVRIUHF\FOLQJZDVWHSUHYHQWLRQ&KDSWHU DQGHQYLURQPHQWDOLVVXHV x 5HTXLUHVXEFRQWUDFWRUVDQGVXSSOLHUVWRXVHWKHUHF\FOLQJDQG GLVSRVDOELQVRQVLWH 0DNH5HF\FOLQJ&RQYHQLHQW x 3ODFHUHF\FOLQJGXPSVWHUVDVFORVHWRWKHZRUNDUHDDVSRVVLEOH x &HQWUDOL]HFXWWLQJRSHUDWLRQVWRUHGXFHZDVWHDQGVLPSOLI\ VRUWLQJ x x $OZD\VSURYLGHDFRQWDLQHUIRUWUDVKZLWKWKHUHF\FOLQJFRQWDLQHU x &UHDWHPDSVRIWKHMREVLWHWRVKRZKDXOHUVH[DFWO\ZKHUHWR SODFHDQGSLFNXSWKHLUGXPSVWHUV 5HF\FOLQJ ,WHPVWR5HF\FOH x x x x x $VSKDOW &RQFUHWH /DQGFOHDULQJGHEULVYHJHWDWLRQVWXPSDJHGLUW :RRG -REVKDFNZDVWH &DVH6WXG\ 6WDSOHWRQ,QWHUQDWLRQDO$LUSRUW'HQYHU&2 ³:RUOGV/DUJHVW5HF\FOLQJ3URMHFW´ 'HQYHU¶V6WDSOHWRQ,QWHUQDWLRQDO$LUSRUWRSHQHGLQDQGE\WKH WLPHLWFORVHG\HDUVODWHULWKDGEHFRPHRQHRIWKHEXVLHVWDLUSRUWV LQWKH86,QLWZDVUHSODFHGE\WKHQHZVWDWHRIWKHDUW'HQYHU ,QWHUQDWLRQDO$LUSRUW x 6L[\HDUSURMHFW x 5HPRYHFRQFUHWHUXQZD\VDYHUDJLQJLQFKHVWKLFNFRYHULQJ DFUHV x 6L[PLOOLRQWRQVRIDJJUHJDWHFRQFUHWHDQGDVSKDOWZLOOEH UHF\FOHG x 7KHUHF\FOLQJFRQWUDFWRU5HF\FOHG0DWHULDOV&RPSDQ\,QF GRQDWHGUHF\FOHGDVSKDOWWRSDYHZKHHOFKDLUWUDLOVDWWKHLU VXPPHUFDPS 5HIHUHQFHV ³&RQWUDFWRUV*XLGH6HDWWOH.LQJ&RXQW\6DYH0RQH\DQG5HVRXUFHV WKURXJK-RE6LWH5HF\FOLQJDQG:DVWH3UHYHQWLRQ´.LQJ&RXQW\ 6ROLG:DVWH'LYLVLRQ6HDWWOHKWWSGQUPHWURNFJRYVZGEL]SURJVXVB EXLOG&RQ*XLGHSGI 5DZOLQJV5³(QYLURQPHQWDO5XOHVRI7KXPE´7KH%XLOGLQJ 6HUYLFHV5HVHDUFKDQG,QIRUPDWLRQ$VVRFLDWLRQ%UDFKQHOO%HUNVKLUH 8. 7KRPSVRQ7³5HF\FOH7KLV´$VVRFLDWHG*HQHUDO&RQWUDFWRUVRI$PHULFD KWWSZZZDJFRUJFRQWHQWSXEOLFSGI(QYLURQPHQWDOB,QIRUHF\FOHB EURFKXUHSGI :LOVRQ$'HDOLQJZLWK&RQVWUXFWLRQ:DVWH,QQRYDWLYH6ROXWLRQV IRUD7RXJK3UREOHP(QYLURQPHQWDO%XVLQHVV1HZV 5HF\FOLQJ &KDSWHU5HF\FOLQJ )RXQGDWLRQV *RDO7RGLYHUWZDVWHIURPWKHODQG¿OOE\UHF\FOLQJRIFRQVWUXFWLRQ GHEULV$PLQLPXPUHTXLUHPHQWRILVVSHFL¿HGRQPRVW3(15(1& FRQWUDFWV $FWLRQVDQG0HWKRGV 6WDFNROGIRUPVQH[WWRQHZRQHVIRUUHXVH x 5HXVHIRUPWLHV x /DQGFOHDULQJGHEULVFDQEHXVHGDVDEDFN¿OORQIRXQGDWLRQV x 5HXVHVRLOFXWIRUIRXQGDWLRQVVRWKDWLWGRHVQRWKDYHWREH KDXOHGRXWVLGHRIWKHVLWH x :KHQGULYLQJSLOHVWDNHWKHSURSHUSUHFDXWLRQV'RQRWOHW PDWHULDOVIURPWKHERULQJVJHWPL[HGZLWKWKHWRSVRLODQGVSLOO RYHU x ([SORUHDOWHUQDWLYHIRUPZRUNRSWLRQV&RQVLGHUXVLQJLQVXODWHG FRQFUHWHIRUPV,&)V x &RQVLGHUXVLQJELREDVHGIRUPUHOHDVHDJHQWVWRDOORZIRU IRUPZRUNUHF\FOLQJ &RQVLVWHQWDQG2QJRLQJ$FWLRQV x 8VHVDIHW\PHHWLQJVVLJQDJHDQGVXEFRQWUDFWRUDJUHHPHQWVWR FRPPXQLFDWHWKHJRDOVRIUHF\FOLQJZDVWHSUHYHQWLRQ&KDSWHU DQGHQYLURQPHQWDOLVVXHV x 5HTXLUHVXEFRQWUDFWRUVDQGVXSSOLHUVWRXVHWKHUHF\FOLQJDQG GLVSRVDOELQVRQVLWH 0DNH5HF\FOLQJ&RQYHQLHQW x 3ODFHUHF\FOLQJGXPSVWHUVDVFORVHWRWKHZRUNDUHDDVSRVVLEOH x &HQWUDOL]HFXWWLQJRSHUDWLRQVWRUHGXFHZDVWHDQGVLPSOLI\ VRUWLQJ x x $OZD\VSURYLGHDFRQWDLQHUIRUWUDVKZLWKWKHUHF\FOLQJFRQWDLQHU x &UHDWHPDSVRIWKHMREVLWHWRVKRZKDXOHUVH[DFWO\ZKHUHWR SODFHDQGSLFNXSWKHLUGXPSVWHUV 5HF\FOLQJ ,WHPVWR5HF\FOH x x x &RQFUHWH :RRG -REVKDFNZDVWH &DVH6WXG\ &RPP2I¿FH%XLOGLQJ%RHLQJ&RPPHUFLDO$LUSODQH*URXS+4 %DXJK&RQVWUXFWLRQ¶VFRPPLWPHQWWRZDVWHSUHYHQWLRQDQGUHF\FOLQJZDV HYLGHQWLQWKLVSURMHFW7KURXJKWKHUHF\FOLQJSODQWKHEXLOGHUDFKLHYHG DQDPD]LQJSHUFHQWUHF\FOLQJUDWHDQGLPSURYHGWKHLUERWWRPOLQH E\VDYLQJ7KHPDWHULDOVDQGWKHDPRXQWRIHDFKWKDWZDV UHF\FOHGZHUH x WRQVRIZRRG x WRQVRIGU\ZDOO x WRQVRIFRQFUHWH x WRQVRIPHWDOV x WRQVRIFDUGERDUG x WRQVRIODQGFOHDULQJGHEULV 5HIHUHQFHV ³&RQWUDFWRUV*XLGH6HDWWOH.LQJ&RXQW\6DYH0RQH\DQG5HVRXUFHV WKURXJK-RE6LWH5HF\FOLQJDQG:DVWH3UHYHQWLRQ´.LQJ&RXQW\ 6ROLG:DVWH'LYLVLRQ6HDWWOHKWWSGQUPHWURNFJRYVZGEL]SURJVXVB EXLOG&RQ*XLGHSGI :LOVRQ$'HDOLQJZLWK&RQVWUXFWLRQ:DVWH,QQRYDWLYH6ROXWLRQV IRUD7RXJK3UREOHP(QYLURQPHQWDO%XVLQHVV1HZV 5HF\FOLQJ &KDSWHU5HF\FOLQJ 6XEVWUXFWXUH *RDO7RGLYHUWZDVWHIURPWKHODQG¿OOE\UHF\FOLQJRIFRQVWUXFWLRQ GHEULV$PLQLPXPUHTXLUHPHQWRILVVSHFL¿HGRQPRVW3(15(1& FRQWUDFWV $FWLRQVDQG0HWKRGV 8VHRIFRQFUHWHGHEULVDVFOHDQ¿OODURXQGWKHEXLOGLQJ x 5HXVHDQGUHF\FOHUHEDUDQGIRUPWLHV x 5HF\FOHZRRGHQIRUPZRUN x ,GHQWLI\ZD\VWRPLQLPL]HIRUPZRUNFXWWLQJ x %DFN¿OODURXQGWKHVXEVWUXFWXUHXVLQJGLUWDFFXPXODWHGGXULQJ ODQGFOHDULQJ x 8VHUHF\FODEOHPHWDOIRUPZRUN &RQVLVWHQWDQG2QJRLQJ$FWLRQV x 8VHVDIHW\PHHWLQJVVLJQDJHDQGVXEFRQWUDFWRUDJUHHPHQWVWR FRPPXQLFDWHWKHJRDOVRIUHF\FOLQJZDVWHSUHYHQWLRQ&KDSWHU DQGHQYLURQPHQWDOLVVXHV x 5HTXLUHVXEFRQWUDFWRUVDQGVXSSOLHUVWRXVHWKHUHF\FOLQJDQG GLVSRVDOELQVRQVLWH 0DNH5HF\FOLQJ&RQYHQLHQW x 3ODFHUHF\FOLQJGXPSVWHUVDVFORVHWRWKHZRUNDUHDDVSRVVLEOH x &HQWUDOL]HFXWWLQJRSHUDWLRQVWRUHGXFHZDVWHDQGVLPSOLI\ VRUWLQJ x $OZD\VSURYLGHDFRQWDLQHUIRUWUDVKZLWKWKHUHF\FOLQJFRQWDLQHU x &UHDWHPDSVRIWKHMREVLWHWRVKRZKDXOHUVH[DFWO\ZKHUHWR SODFHDQGSLFNXSWKHLUGXPSVWHUV x 5HF\FOLQJ ,WHPVWR5HF\FOH x x x x &RQFUHWH 5HEDU :RRG -REVKDFNZDVWH 5HIHUHQFHV ³&RQWUDFWRUV*XLGH6HDWWOH.LQJ&RXQW\6DYH0RQH\DQG5HVRXUFHV WKURXJK-RE6LWH5HF\FOLQJDQG:DVWH3UHYHQWLRQ´.LQJ&RXQW\ 6ROLG:DVWH'LYLVLRQ6HDWWOHKWWSGQUPHWURNFJRYVZGEL]SURJVXVB EXLOG&RQ*XLGHSGI 7KRPSVRQ7³5HF\FOH7KLV´$VVRFLDWHG*HQHUDO&RQWUDFWRUVRI$PHULFD KWWSZZZDJFRUJFRQWHQWSXEOLFSGI(QYLURQPHQWDOB,QIRUHF\FOHB EURFKXUHSGI :LOVRQ$'HDOLQJZLWK&RQVWUXFWLRQ:DVWH,QQRYDWLYH6ROXWLRQV IRUD7RXJK3UREOHP(QYLURQPHQWDO%XVLQHVV1HZV 5HF\FOLQJ &KDSWHU5HF\FOLQJ 6XSHUVWUXFWXUH *RDO7RGLYHUWZDVWHIURPWKHODQG¿OOE\UHF\FOLQJRIFRQVWUXFWLRQ GHEULV$PLQLPXPUHTXLUHPHQWRILVVSHFL¿HGRQPRVW3(15(1& FRQWUDFWV $FWLRQVDQG0HWKRGV &ROOHFWDQGVWDFNEULFNVDQGRWKHUPDVRQU\PDWHULDOVVFDWWHUHG DURXQGWKHMREVLWHWRNHHSWKHPIURPJHWWLQJVRLOHGRUORVW x 0LQLPL]HWKHXVHRIDGPL[WXUHV x 8VHÀ\DVKZLWKFRQFUHWHZKHUHDSSURSULDWH x 5HF\FOHH[FHVVFRQFUHWHXVHGLQVXSHUVWUXFWXUHIRU¿OOVSDYLQJ DQGGUDLQDJH x 6HSDUDWHWKHGLIIHUHQWW\SHVRIPHWDOVXVHGDQGVWRUHWKHP VHSDUDWHO\IRUUHF\FOLQJ x 2UGHUVWHHOIURPDSURGXFWLRQSURFHVVWKDWXVHVKLJKOHYHOVRI UHF\FOHGFRQWHQWLHWKH(OHFWULF$UF)XUQDFHSURFHVVKDVXSWR UHF\FOHGFRQWHQW x 8VHH[FHVVSLHFHVDQGFXWRIIVRIZRRGIRUGXQQDJH x ([SORUHVDOYDJHPDUNHWRSWLRQV6HYHUDOSURGXFWVOLNHVWHHODQG &08EORFNKDYHDVDOYDJHYDOXH,QVRPHPDUNHWVVHUYLFHVDUH DYDLODEOHWRKDXOWKHZDVWHGSURGXFWVIURP\RXUVLWHDWQRFRVW VDYLQJRQKDXOLQJFRVWVIRUZDVWHGLVSRVDO6FUDSVWHHOSULFHV KDYHÀXFWXDWHGIURPWRQWRWRQ &RQVLVWHQWDQG2QJRLQJ$FWLRQV x 8VHVDIHW\PHHWLQJVVLJQDJHDQGVXEFRQWUDFWRUDJUHHPHQWVWR FRPPXQLFDWHWKHJRDOVRIUHF\FOLQJZDVWHSUHYHQWLRQ&KDSWHU DQGHQYLURQPHQWDOLVVXHV x 5HTXLUHVXEFRQWUDFWRUVDQGVXSSOLHUVWRXVHWKHUHF\FOLQJDQG GLVSRVDOELQVRQVLWH 0DNH5HF\FOLQJ&RQYHQLHQW x x x x 3ODFHUHF\FOLQJGXPSVWHUVDVFORVHWRWKHZRUNDUHDDVSRVVLEOH &HQWUDOL]HFXWWLQJRSHUDWLRQVWRUHGXFHZDVWHDQGVLPSOLI\ VRUWLQJ $OZD\VSURYLGHDFRQWDLQHUIRUWUDVKZLWKWKHUHF\FOLQJFRQWDLQHU 5HF\FOLQJ x &UHDWHPDSVRIWKHMREVLWHWRVKRZKDXOHUVH[DFWO\ZKHUHWR SODFHDQGSLFNXSWKHLUGXPSVWHUV ,WHPVWR5HF\FOH x x x x x &RQFUHWH 5HEDU :RRG 0HWDOV -REVKDFNZDVWH 6XVWDLQDEOH&RQVWUXFWLRQ)DFWV 5HIHUHQFHV ³&RQWUDFWRUV*XLGH6HDWWOH.LQJ&RXQW\6DYH0RQH\DQG5HVRXUFHV WKURXJK-RE6LWH5HF\FOLQJDQG:DVWH3UHYHQWLRQ´.LQJ&RXQW\ 6ROLG:DVWH'LYLVLRQ6HDWWOHKWWSGQUPHWURNFJRYVZGEL]SURJVXVB EXLOG&RQ*XLGHSGI ³6WHHO6FUDS3ULFHV´$PHULFDQ,QVWLWXWHRI6WHHO&RQVWUXFWLRQ ,QFKWWSZZZDLVFRUJ&RQWHQW&RQWHQW*URXSV'RFXPHQWVJHQHUDOB $,6&6FRWWV&KDUWKWP :LOVRQ$'HDOLQJZLWK&RQVWUXFWLRQ:DVWH,QQRYDWLYH6ROXWLRQV IRUD7RXJK3UREOHP(QYLURQPHQWDO%XVLQHVV1HZV 5HF\FOLQJ &KDSWHU5HF\FOLQJ ([WHULRU(QFORVXUH *RDO7RGLYHUWZDVWHIURPWKHODQG¿OOE\UHF\FOLQJRIFRQVWUXFWLRQ GHEULV$PLQLPXPUHTXLUHPHQWRILVVSHFL¿HGRQPRVW3(15(1& FRQWUDFWV $FWLRQVDQG0HWKRGV 6DYHOHIWRYHUPDVRQU\PDWHULDOVIRUDIXWXUHMRERUUHWXUQWKHP WR\RXUVXSSOLHU x ([SDQGHGSRO\VW\UHQHLQVXODWLRQ(36FDQEHUHF\FOHGIRU PDQXIDFWXULQJQHZVW\UHQHSURGXFWV x %ULFNEORFNDQGDVSKDOWVKLQJOHZDVWHDUHLQVLJQL¿FDQWLQ YROXPHEXWFDQEHLPSRUWDQWLQWHUPVRIZHLJKW x 'U\ZDOOJ\SVXPZDVWHFDQEHEURNHQGRZQDQGXVHGDVVRLO DPHQGPHQWFHPHQWDGGLWLYHQHZGU\ZDOOSDSHU¿EHUIHHGVWRFN DQLPDOEHGGLQJDQGRWKHUDJULFXOWXUDOSURGXFWV x ,GHQWLI\RSSRUWXQLWLHVWRUHXVHFUDWHVDQGSDOOHWVIURPPDWHULDO GHOLYHULHV x 3ODFHPHWDOLQVHSDUDWHELQVIRUUHF\FOLQJ &RQVLVWHQWDQG2QJRLQJ$FWLRQV x 8VHVDIHW\PHHWLQJVVLJQDJHDQGVXEFRQWUDFWRUDJUHHPHQWVWR FRPPXQLFDWHWKHJRDOVRIUHF\FOLQJZDVWHSUHYHQWLRQ&KDSWHU DQGHQYLURQPHQWDOLVVXHV x 5HTXLUHVXEFRQWUDFWRUVDQGVXSSOLHUVWRXVHWKHUHF\FOLQJDQG GLVSRVDOELQVRQVLWH 0DNH5HF\FOLQJ&RQYHQLHQW x 3ODFHUHF\FOLQJGXPSVWHUVDVFORVHWRWKHZRUNDUHDDVSRVVLEOH x &HQWUDOL]HFXWWLQJRSHUDWLRQVWRUHGXFHZDVWHDQGVLPSOLI\ VRUWLQJ x $OZD\VSURYLGHDFRQWDLQHUIRUWUDVKZLWKWKHUHF\FOLQJFRQWDLQHU x &UHDWHMREVLWHPDSVWRVKRZKDXOHUVH[DFWO\ZKHUHWRSODFHDQG SLFNXSWKHLUGXPSVWHUV x 5HF\FOLQJ ,WHPVWR5HF\FOH x x x x x x &RQFUHWH 0HWDOV :RRG *ODVV ,QVXODWLRQ -REVKDFNZDVWH 5HIHUHQFHV ³&RQVWUXFWLRQ:DVWH7\SHVDQG4XDQWLWLHV´2LNRV*UHHQ %XLOGLQJ6RXUFHKWWSRLNRVFRPOLEUDU\ZDVWHW\SHVKWPO ³&RQWUDFWRUV*XLGH6HDWWOH.LQJ&RXQW\6DYH0RQH\DQG5HVRXUFHV WKURXJK-RE6LWH5HF\FOLQJDQG:DVWH3UHYHQWLRQ´.LQJ&RXQW\ 6ROLG:DVWH'LYLVLRQ6HDWWOHKWWSGQUPHWURNFJRYVZGEL]SURJVXVB EXLOG&RQ*XLGHSGI :LOVRQ$'HDOLQJZLWK&RQVWUXFWLRQ:DVWH,QQRYDWLYH6ROXWLRQV IRUD7RXJK3UREOHP(QYLURQPHQWDO%XVLQHVV1HZV 5HF\FOLQJ &KDSWHU5HF\FOLQJ 5RR¿QJ *RDO7RGLYHUWZDVWHIURPWKHODQG¿OOE\UHF\FOLQJRIFRQVWUXFWLRQ GHEULV$PLQLPXPUHTXLUHPHQWRILVVSHFL¿HGRQPRVW3(15(1& FRQWUDFWV $FWLRQVDQG0HWKRGV $VSKDOWURR¿QJPDWHULDOVDQGDJJUHJDWHVFDQEHUHF\FOHGLQWR URDGSDYLQJRUSDWFKLQJPDWHULDO x /HIWRYHUURR¿QJPDWHULDOFDQEHGRQDWHGWRORFDOQRQSUR¿W RUJDQL]DWLRQVZKLFKVDYHVRQGLVSRVDOFRVWV x 3ODVWLF¿OPVOLNHVKHDWKLQJVKULQNZUDSDQGSDFNDJLQJFDQEH UHF\FOHG &RQVLVWHQWDQG2QJRLQJ$FWLRQV x 8VHVDIHW\PHHWLQJVVLJQDJHDQGVXEFRQWUDFWRUDJUHHPHQWVWR FRPPXQLFDWHWKHJRDOVRIUHF\FOLQJZDVWHSUHYHQWLRQ&KDSWHU DQGHQYLURQPHQWDOLVVXHV x 5HTXLUHVXEFRQWUDFWRUVDQGVXSSOLHUVWRXVHWKHUHF\FOLQJDQG GLVSRVDOELQVRQVLWH 0DNH5HF\FOLQJ&RQYHQLHQW x 3ODFHUHF\FOLQJGXPSVWHUVDVFORVHWRWKHZRUNDUHDDVSRVVLEOH x &HQWUDOL]HFXWWLQJRSHUDWLRQVWRUHGXFHZDVWHDQGVLPSOLI\ VRUWLQJ x $OZD\VSURYLGHDFRQWDLQHUIRUWUDVKZLWKWKHUHF\FOLQJFRQWDLQHU x &UHDWHPDSVRIWKHMREVLWHWRVKRZKDXOHUVH[DFWO\ZKHUHWR SODFHDQGSLFNXSWKHLUGXPSVWHUV x ,WHPVWR5HF\FOH x 0HWDOV R $OXPLQXPÀDVKLQJ R /HDGÀDVKLQJ :RRG x &DUGERDUG x 3ODVWLF x -REVKDFNZDVWH 5HF\FOLQJ x &DVH6WXG\ 6HDWWOH.LQJGRPH 1HDUO\HYHU\QRRNDQGFUDQQ\RIWKH6HDWWOH.LQJGRPHZDVSXWWRJRRG XVH$FUHZRIRYHUSHRSOHVSHQWZHHNVVWULSSLQJWKHURRIDQG JXWWLQJWKHLQWHULRURIWKHEXLOGLQJRIDQ\PDWHULDOVWKDWZRXOGFRQWDPLQDWH WKHUHF\FOLQJHIIRUW x )XUQLVKLQJVZHUHHLWKHUGRQDWHGWRORFDOVRXSNLWFKHQVDQGRWKHU QRQSUR¿WVRUUHPRYHGDQGDXFWLRQHGRIILQRUGHUWRUDLVHPRQH\ IRUWKH.LQJ&RXQW\3DUNVDQG5HFUHDWLRQ'HSDUWPHQW x SHUFHQWRISURMHFWZDVWHRUWRQVRIZRRGFRQFUHWH VWHHODQGRWKHUFRQVWUXFWLRQPDWHULDOVZHUHUHF\FOHGLQWRWKH QHZVWDGLXP x 2YHUZDVVDYHGLQPDWHULDOVUHPRYDODQGODQG¿OO FRVWV 5HIHUHQFHV ³&RQWUDFWRUV*XLGH6HDWWOH.LQJ&RXQW\6DYH0RQH\DQG5HVRXUFHV WKURXJK-RE6LWH5HF\FOLQJDQG:DVWH3UHYHQWLRQ´.LQJ&RXQW\ 6ROLG:DVWH'LYLVLRQ6HDWWOHKWWSGQUPHWURNFJRYVZGEL]SURJVXVB EXLOG&RQ*XLGHSGI 7KRPSVRQ7³5HF\FOH7KLV´$VVRFLDWHG*HQHUDO&RQWUDFWRUVRI$PHULFD KWWSZZZDJFRUJFRQWHQWSXEOLFSGI(QYLURQPHQWDOB,QIRUHF\FOHB EURFKXUHSGI 5HF\FOLQJ &KDSWHU5HF\FOLQJ ,QWHULRU&RQVWUXFWLRQ *RDO7RGLYHUWZDVWHIURPWKHODQG¿OOE\UHF\FOLQJRIFRQVWUXFWLRQ GHEULV$PLQLPXPUHTXLUHPHQWRILVVSHFL¿HGRQPRVW3(15(1& FRQWUDFWV $FWLRQVDQG0HWKRGV 9LQ\ODQGPHWDOVDUHJHQHUDWHGLQVPDOOTXDQWLWLHVEXWKDYH JRRGUHF\FOLQJYDOXH x &DUGERDUGPDNHVXSWKHODUJHVWYROXPHRIZDVWHRQFRQVWUXFWLRQ VLWHVDQGLVRQHRIWKHHDVLHVWLWHPVWRUHF\FOH x ³&OHDQ´ZRRGLVXQSDLQWHGXQWUHDWHGDQGUHF\FODEOHLQFOXGHV GLPHQVLRQDOOXPEHUSO\ZRRGRULHQWHGVWDQGERDUG26%DQG SDUWLFOHERDUGZLWKRXWODPLQDWHV x &OHDQZRRGVKRXOGEHSODFHGLQDVHSDUDWHGXPSVWHU x &KHFNFDUSHWDQGFHLOLQJWLOHIRUFRQWDPLQDQWVEHIRUHUHPRYDO x 8QXVHGGU\ZDOOVKRXOGEHVWRUHGFDUHIXOO\ x ,ISDLQWFDQQRWEHUHF\FOHGLWVKRXOGEHGLVSRVHGRIDFFRUGLQJWR WKHPDQXIDFWXUHU¶VUHFRPPHQGDWLRQV &RQVLVWHQWDQG2QJRLQJ$FWLRQV x 8VHVDIHW\PHHWLQJVVLJQDJHDQGVXEFRQWUDFWRUDJUHHPHQWVWR FRPPXQLFDWHWKHJRDOVRIUHF\FOLQJZDVWHSUHYHQWLRQ&KDSWHU DQGHQYLURQPHQWDOLVVXHV x 5HTXLUHVXEFRQWUDFWRUVDQGVXSSOLHUVWRXVHWKHUHF\FOLQJDQG GLVSRVDOELQVRQVLWH 0DNH5HF\FOLQJ&RQYHQLHQW x 3ODFHUHF\FOLQJGXPSVWHUVDVFORVHWRWKHZRUNDUHDDVSRVVLEOH x &HQWUDOL]HFXWWLQJRSHUDWLRQVWRUHGXFHZDVWHDQGVLPSOLI\ VRUWLQJ x x $OZD\VSURYLGHDFRQWDLQHUIRUWUDVKZLWKWKHUHF\FOLQJFRQWDLQHU x &UHDWHMREVLWHPDSVWRVKRZKDXOHUVH[DFWO\ZKHUHWRSODFHDQG SLFNXSWKHLUGXPSVWHUV 5HF\FOLQJ ,WHPVWR5HF\FOH x x x x x x x x 'U\ZDOO &DUGERDUG *ODVV 0HWDOVWXGV :RRG $FRXVWLFDO7LOHV &DUSHWDQGFDUSHWSDGV -REVKDFNZDVWH 6DPSOH6LJQDJH 5HIHUHQFHV ³&RQVWUXFWLRQ:DVWH7\SHVDQG4XDQWLWLHV´2LNRV*UHHQ %XLOGLQJ6RXUFHKWWSRLNRVFRPOLEUDU\ZDVWHW\SHVKWPO ³&RQWUDFWRUV*XLGH6HDWWOH.LQJ&RXQW\6DYH0RQH\DQG5HVRXUFHV WKURXJK-RE6LWH5HF\FOLQJDQG:DVWH3UHYHQWLRQ´.LQJ&RXQW\ 6ROLG:DVWH'LYLVLRQ6HDWWOHKWWSGQUPHWURNFJRYVZGEL]SURJVXVB EXLOG&RQ*XLGHSGI 5HF\FOLQJ &KDSWHU5HF\FOLQJ &RQYH\LQJ6\VWHPV *RDO7RGLYHUWZDVWHIURPWKHODQG¿OOE\UHF\FOLQJRIFRQVWUXFWLRQ GHEULV$PLQLPXPUHTXLUHPHQWRILVVSHFL¿HGRQPRVW3(15(1& FRQWUDFWV $FWLRQVDQG0HWKRGV 3DSHUFDUGERDUGDQGPHWDOSDFNDJLQJVKRXOGEHVHSDUDWHGDQG VRUWHG x %XQGOHWKHFDUGERDUGWRSHUPLWHDVLHUVWRUDJHDQGGHOLYHUWR UHF\FOLQJIDFLOLW\ x $VNYHQGRUVDQGVXSSOLHUVWRWDNHSDOOHWVDZD\DIWHUGHOLYHU\ x 6WRUHSDOOHWVLQDFHQWUDOORFDWLRQIRUHDV\UHPRYDO &RQVLVWHQWDQG2QJRLQJ$FWLRQV x 8VHVDIHW\PHHWLQJVVLJQDJHDQGVXEFRQWUDFWRUDJUHHPHQWVWR FRPPXQLFDWHWKHJRDOVRIUHF\FOLQJZDVWHSUHYHQWLRQ&KDSWHU DQGHQYLURQPHQWDOLVVXHV x 5HTXLUHVXEFRQWUDFWRUVDQGVXSSOLHUVWRXVHWKHUHF\FOLQJDQG GLVSRVDOELQVRQVLWH 0DNH5HF\FOLQJ&RQYHQLHQW x 3ODFHUHF\FOLQJGXPSVWHUVDVFORVHWRWKHZRUNDUHDDVSRVVLEOH x &HQWUDOL]HFXWWLQJRSHUDWLRQVWRUHGXFHZDVWHDQGVLPSOLI\ VRUWLQJ x $OZD\VSURYLGHDFRQWDLQHUIRUWUDVKZLWKWKHUHF\FOLQJFRQWDLQHU x &UHDWHMREVLWHPDSVWRVKRZKDXOHUVH[DFWO\ZKHUHWRSODFHDQG SLFNXSWKHLUGXPSVWHUV x ,WHPVWR5HF\FOH x x &DUGERDUG -REVKDFNZDVWH 5HIHUHQFHV ³&RQWUDFWRUV*XLGH6HDWWOH.LQJ&RXQW\6DYH0RQH\DQG5HVRXUFHV WKURXJK-RE6LWH5HF\FOLQJDQG:DVWH3UHYHQWLRQ´.LQJ&RXQW\ 6ROLG:DVWH'LYLVLRQ6HDWWOHKWWSGQUPHWURNFJRYVZGEL]SURJVXVB EXLOG&RQ*XLGHSGI 5HF\FOLQJ &KDSWHU5HF\FOLQJ 0HFKDQLFDO *RDO7RGLYHUWZDVWHIURPWKHODQG¿OOE\UHF\FOLQJRIFRQVWUXFWLRQ GHEULV$PLQLPXPUHTXLUHPHQWRILVVSHFL¿HGRQPRVW3(15(1& FRQWUDFWV $FWLRQVDQG0HWKRGV $VNYHQGRUVWRUHGXFHWKHDPRXQWRISDFNDJLQJGHOLYHUHGWR WKHVLWHHJSDOOHWVFDUGERDUGVSODVWLFVKULQNZUDSDQGPHWDO EDQGV x $VNYHQGRUVWRWDNHEDFNQRQUHF\FODEOHSDFNDJLQJIRUUHXVH x 5HWDLQ39&FXWRIIVIRUXVHDVVWXEVIRUZDOOGUDLQV x 6HSDUDWHDQGUHF\FOHSODVWLFVLQFOXGLQJ39&LISRVVLEOHPHWDO DQGDGKHVLYHV x &RQWUROV\VWHPFRPSRQHQWVLQFOXGLQJYDULDEOHVSHHGGULYH FRQWUROOHUVIURPDLUKDQGOLQJXQLWVFDQEHXVHGDVVSDUHSDUWV x 6RPHFRPSDQLHVDFFHSWROGPDFKLQHU\OLNHFRPSUHVVRUVDQG UHFRQGLWLRQWKHP x &RSSHUZLUHVFDQEHUHF\FOHGRUUHXVHG &RQVLVWHQWDQG2QJRLQJ$FWLRQV x 8VHVDIHW\PHHWLQJVVLJQDJHDQGVXEFRQWUDFWRUDJUHHPHQWVWR FRPPXQLFDWHWKHJRDOVRIUHF\FOLQJZDVWHSUHYHQWLRQ&KDSWHU DQGHQYLURQPHQWDOLVVXHV x 5HTXLUHVXEFRQWUDFWRUVDQGVXSSOLHUVWRXVHWKHUHF\FOLQJDQG GLVSRVDOELQVRQVLWH 0DNH5HF\FOLQJ&RQYHQLHQW x 3ODFHUHF\FOLQJGXPSVWHUVDVFORVHWRWKHZRUNDUHDDVSRVVLEOH x &HQWUDOL]HFXWWLQJRSHUDWLRQVWRUHGXFHZDVWHDQGVLPSOLI\ VRUWLQJ x x $OZD\VSURYLGHDFRQWDLQHUIRUWUDVKZLWKWKHUHF\FOLQJFRQWDLQHU x &UHDWHPDSVRIWKHMREVLWHWRVKRZKDXOHUVH[DFWO\ZKHUHWR SODFHDQGSLFNXSWKHLUGXPSVWHUV 5HF\FOLQJ ,WHPVWR5HF\FOH x x x x x x x x &DUGERDUG 3ODVWLFSDFNDJLQJ &RQFUHWH 6KHHWPHWDO &RSSHUSLSLQJ 3DLQW :RRG -REVKDFNZDVWH &DVH6WXG\ :DVWH5HF\FOLQJ0LFURVRIW%XLOGLQJV5HPRGHOLQJ3URMHFW ³2IWKRVHLWHPVWKDWZHUHGHPROLVKHGDERXWEHFDPHUHF\FOHG PDWHULDOV7KLVJUHDWO\UHGXFHGEXONYROXPHRIPDWHULDOVWKDWHQGHGXSLQ WKHODQG¿OO´+HUPDQVRQ&RUSRUDWLRQ 5HIHUHQFHV ³&RQVWUXFWLRQ:DVWH0DQDJHPHQW3URJUDP´6(//(1&RQVWUXFWLRQ &RPSDQ\ ³&RQWUDFWRUV*XLGH6HDWWOH.LQJ&RXQW\6DYH0RQH\DQG5HVRXUFHV WKURXJK-RE6LWH5HF\FOLQJDQG:DVWH3UHYHQWLRQ´.LQJ&RXQW\ 6ROLG:DVWH'LYLVLRQ6HDWWOHKWWSGQUPHWURNFJRYVZGEL]SURJVXVB EXLOG&RQ*XLGHSGI 9OHFN5(³$GYDQFHG&RQVWUXFWLRQDQG'HPROLWLRQ:DVWH 0DQDJHPHQWIRU)ORULGD%XLOGHUV´8QLYHUVLW\RI)ORULGD 5HF\FOLQJ &KDSWHU5HF\FOLQJ (OHFWULFDO *RDO7RGLYHUWZDVWHIURPWKHODQG¿OOE\UHF\FOLQJRIFRQVWUXFWLRQ GHEULV$PLQLPXPUHTXLUHPHQWRILVVSHFL¿HGRQPRVW3(15(1& FRQWUDFWV $FWLRQVDQG0HWKRGV /DPSVFRQWDLQLQJPHUFXU\VKRXOGEHUHF\FOHGHJÀXRUHVFHQW PHUFXU\YDSRUPHWDOKDOLGHKLJKSUHVVXUHVRGLXPDQGQHRQ x :KHQODPSVDUHUHPRYHGVWRUHWKHPFDUHIXOO\WRSUHYHQW EUHDNDJH x 5HF\FOHPHWDOVFUDS6HSDUDWHGPHWDOVKDYHKLJKHUYDOXHWKDQ PL[HGPHWDOV x 1L&DGEDWWHULHVIURPSRUWDEOHSRZHUWRROVVKRXOGEHVHQWWR VSHFLDOL]HGEDWWHU\SLFNXSVLWHVIRUUHF\FOLQJ x &OHDQXSUHJXODUO\DQGVFKHGXOHUHJXODULQVSHFWLRQRIGXPSVWHUV DQGUHF\FOLQJELQVWRSUHYHQWFRQWDPLQDWLRQ &RQVLVWHQWDQG2QJRLQJ$FWLRQV x 8VHVDIHW\PHHWLQJVVLJQDJHDQGVXEFRQWUDFWRUDJUHHPHQWVWR FRPPXQLFDWHWKHJRDOVRIUHF\FOLQJZDVWHSUHYHQWLRQ&KDSWHU DQGHQYLURQPHQWDOLVVXHV x 5HTXLUHVXEFRQWUDFWRUVDQGVXSSOLHUVWRXVHWKHUHF\FOLQJDQG GLVSRVDOELQVRQVLWH 0DNH5HF\FOLQJ&RQYHQLHQW x 3ODFHUHF\FOLQJGXPSVWHUVDVFORVHWRWKHZRUNDUHDDVSRVVLEOH x &HQWUDOL]HFXWWLQJRSHUDWLRQVWRUHGXFHZDVWHDQGVLPSOLI\ VRUWLQJ x $OZD\VSURYLGHDFRQWDLQHUIRUWUDVKZLWKWKHUHF\FOLQJFRQWDLQHU x &UHDWHMREVLWHPDSVWRVKRZKDXOHUVH[DFWO\ZKHUHWRSODFHDQG SLFNXSWKHLUGXPSVWHUV x 5HF\FOLQJ ,WHPVWR5HF\FOH x x x x &DUGERDUGSDFNDJLQJ )OXRUHVFHQWOLJKWVDQGEDOODVWV 0HWDOFRQGXLW :RRGEORFNLQJ 5HIHUHQFHV ³&RQWUDFWRUV*XLGH6HDWWOH.LQJ&RXQW\6DYH0RQH\DQG5HVRXUFHV WKURXJK-RE6LWH5HF\FOLQJDQG:DVWH3UHYHQWLRQ´.LQJ&RXQW\ 6ROLG:DVWH'LYLVLRQ6HDWWOHKWWSGQUPHWURNFJRYVZGEL]SURJVXVB EXLOG&RQ*XLGHSGI 2¶%ULHQ.³%HVW0DQDJHPHQW3UDFWLFHVDQG7RROVIRU-RE6LWH5HF\FOLQJ DQG:DVWH5HGXFWLRQLQ+DZDLL´7KH6WDWHRI+DZDLL 5HF\FOLQJ &KDSWHU5HF\FOLQJ ,QIRUPDWLRQ7HFKQRORJ\ *RDO7RGLYHUWZDVWHIURPWKHODQG¿OOE\UHF\FOLQJRIFRQVWUXFWLRQ GHEULV$PLQLPXPUHTXLUHPHQWRILVVSHFL¿HGRQPRVW3(15(1& FRQWUDFWV $FWLRQVDQG0HWKRGV 5HF\FOHROGFRPSXWHUV x 5HF\FOHFRPSXWHUPRQLWRUV7KH\KDYHKHDY\PHWDOVWKDWFDQ EHUHF\FOHG x 5HF\FOHMREVKDFNZDVWHVLQFOXGLQJRI¿FHSDSHUSRSFDQVDQG ERWWOHVDQGRI¿FHFDUGERDUGV x :RUNZLWKYHQGRUVWRUHGXFHSDFNDJLQJZDVWH &RQVLVWHQWDQG2QJRLQJ$FWLRQV x 8VHVDIHW\PHHWLQJVVLJQDJHDQGVXEFRQWUDFWRUDJUHHPHQWVWR FRPPXQLFDWHWKHJRDOVRIUHF\FOLQJZDVWHSUHYHQWLRQ&KDSWHU DQGHQYLURQPHQWDOLVVXHV x 5HTXLUHVXEFRQWUDFWRUVDQGVXSSOLHUVWRXVHWKHUHF\FOLQJDQG GLVSRVDOELQVRQVLWH 0DNH5HF\FOLQJ&RQYHQLHQW x 3ODFHUHF\FOLQJGXPSVWHUVDVFORVHWRWKHZRUNDUHDDVSRVVLEOH x &HQWUDOL]HFXWWLQJRSHUDWLRQVWRUHGXFHZDVWHDQGVLPSOLI\ VRUWLQJ x $OZD\VSURYLGHDFRQWDLQHUIRUWUDVKZLWKWKHUHF\FOLQJFRQWDLQHU x &UHDWHPDSVRIWKHMREVLWHWRVKRZKDXOHUVH[DFWO\ZKHUHWR SODFHDQGSLFNXSWKHLUGXPSVWHUV x ,WHPVWR5HF\FOH x x x x x &RPSXWHUV &DUGERDUGSDFNDJLQJ 3ODVWLF¿OPV 0HWDOFRQGXLW -REVKDFNZDVWH 5HF\FOLQJ 6XVWDLQDEOH&RQVWUXFWLRQ)DFWV 0\WK /DQG¿OOVDQGLQFLQHUDWRUVDUHPRUHFRVWHIIHFWLYHDQGHQYLURQPHQWDOO\ VRXQGWKDQUHF\FOLQJRSWLRQV )DFW 5HF\FOLQJSURJUDPVZKHQGHVLJQHGSURSHUO\DUHFRVWHIIHFWLYHZLWK ODQG¿OOVDQGLQFLQHUDWRUVDQGSURYLGHQHWSROOXWLRQSUHYHQWLRQEHQH¿WV 5HF\FOLQJPDWHULDOVQRWRQO\DYRLGVWKHSROOXWLRQWKDWZRXOGEHJHQHUDWHG WKURXJKODQG¿OOLQJDQGLQFLQHUDWLQJWKHVHEXWDOVRUHGXFHVWKH HQYLURQPHQWDOEXUGHQRIYLUJLQPDWHULDOVH[WUDFWLRQDQGPDQXIDFWXULQJ SURFHVVHV 6RXUFH,QVWLWXWHIRU/RFDO6HOI5HOLDQFH:DVKLQJWRQ'& 5HIHUHQFHV ³$ZHVRPH5HF\FOLQJ3URGXFWVDQG3URJUDPV´0LGSRLQW ,QWHUQDWLRQDO,QFKWWSZZZPLGSRLQWLQWFRP ³&RQWUDFWRUV*XLGH6HDWWOH.LQJ&RXQW\6DYH0RQH\DQG5HVRXUFHV WKURXJK-RE6LWH5HF\FOLQJDQG:DVWH3UHYHQWLRQ´.LQJ&RXQW\ 6ROLG:DVWH'LYLVLRQ6HDWWOHKWWSGQUPHWURNFJRYVZGEL]SURJVXVB EXLOG&RQ*XLGHSGI ³*DUEDJH5HVWULFWLRQV6SHFLDO,QVWUXFWLRQVIRUWKH6WDWLRQV´&LW\ RI6HDWWOHKWWSZZZFLVHDWWOHZDXVXWLOVHUYLFHVWUDQVIHUUXOHJDUEKWP 2¶%ULHQ.³%HVW0DQDJHPHQW3UDFWLFHVDQG7RROVIRU-RE6LWH5HF\FOLQJ DQG:DVWH5HGXFWLRQLQ+DZDLL´7KH6WDWHRI+DZDLL 5HF\FOLQJ &KDSWHU5HF\FOLQJ (TXLSPHQW *RDO7RGLYHUWZDVWHIURPWKHODQG¿OOE\UHF\FOLQJRIFRQVWUXFWLRQ GHEULV$PLQLPXPUHTXLUHPHQWRILVVSHFL¿HGRQPRVW3(15(1& FRQWUDFWV .H\,VVXHV (TXLSPHQWVXFKDVFRQVWUXFWLRQIHQFHVWUDSVDQGUH¿OODEOH SURSDQHWDQNVFDQEHUHXVHG x 'RQRWSXWFRQWDLQHUVZLWKRLOLQUHF\FOLQJELQV &RQVLVWHQWDQG2QJRLQJ$FWLRQV x 8VHVDIHW\PHHWLQJVVLJQDJHDQGVXEFRQWUDFWRUDJUHHPHQWVWR FRPPXQLFDWHWKHJRDOVRIUHF\FOLQJZDVWHSUHYHQWLRQ&KDSWHU DQGHQYLURQPHQWDOLVVXHV x 5HTXLUHVXEFRQWUDFWRUVDQGVXSSOLHUVWRXVHWKHUHF\FOLQJDQG GLVSRVDOELQVRQVLWH 0DNH5HF\FOLQJ&RQYHQLHQW x 3ODFHUHF\FOLQJGXPSVWHUVDVFORVHWRWKHZRUNDUHDDVSRVVLEOH x &HQWUDOL]HFXWWLQJRSHUDWLRQVWRUHGXFHZDVWHDQGVLPSOLI\ VRUWLQJ x $OZD\VSURYLGHDFRQWDLQHUIRUWUDVKZLWKWKHUHF\FOLQJFRQWDLQHU x &UHDWHPDSVRIWKHMREVLWHWRVKRZKDXOHUVH[DFWO\ZKHUHWR SODFHDQGSLFNXSWKHLUGXPSVWHUV x ,WHPVWR5HF\FOH x x x x x :RRGSDOOHWV &DUGERDUGSDFNDJLQJ 3ODVWLF¿OPV -REVKDFNZDVWH )OXLGVVXFKDVRLORUDQWLIUHH]HUHPRYHGIURPYHKLFOHVGXHWR PDLQWHQDQFHSURFHGXUHVFDQEHUHF\FOHGDWDSSURYHGIDFLOLWLHV 5HIHUHQFHV ³&RQWUDFWRUV*XLGH6HDWWOH.LQJ&RXQW\6DYH0RQH\DQG5HVRXUFHV WKURXJK-RE6LWH5HF\FOLQJDQG:DVWH3UHYHQWLRQ´.LQJ&RXQW\ 6ROLG:DVWH'LYLVLRQ6HDWWOHKWWSGQUPHWURNFJRYVZGEL]SURJVXVB EXLOG&RQ*XLGHSGI 5HF\FOLQJ &KDSWHU5HF\FOLQJ )LQLVKHV *RDO7RGLYHUWZDVWHIURPWKHODQG¿OOE\UHF\FOLQJRIFRQVWUXFWLRQ GHEULV$PLQLPXPUHTXLUHPHQWRILVVSHFL¿HGRQPRVW3(15(1& FRQWUDFWV $FWLRQVDQG0HWKRGV 8QXVHGRUSDUWLDOO\HPSW\FDQVRISDLQWFDQEHGRQDWHGWRORFDO WKHDWHUJURXSVRUORZLQFRPHKRXVLQJDJHQFLHV x 0XQLFLSDOVROLGZDVWHIDFLOLWLHVDFFHSWSDLQWWRPDNHORZFRVW JUD\SULPHU x 7KHSDLQWVVROYHQWVVWDLQVDQG¿QLVKHVWKDWFDQQRWEHUHF\FOHG VKRXOGEHWDNHQWRDKD]DUGRXVZDVWHIDFLOLW\RUGLVSRVHGRI DFFRUGLQJWRWKHPDQXIDFWXUHU¶VLQVWUXFWLRQV x 6SHFLI\SUHIHUHQFHIRUUHF\FOHGUHWXUQDEOHDQGRUUHF\FODEOH SDFNDJLQJ x 6WRUHPDWHULDOVWRDYRLGGDPDJHWKDWZRXOGUHQGHUDPDWHULDOXQ UHF\FODEOH &RQVLVWHQWDQG2QJRLQJ$FWLRQV x 8VHVDIHW\PHHWLQJVVLJQDJHDQGVXEFRQWUDFWRUDJUHHPHQWVWR FRPPXQLFDWHWKHJRDOVRIUHF\FOLQJZDVWHSUHYHQWLRQ&KDSWHU DQGHQYLURQPHQWDOLVVXHV x 5HTXLUHVXEFRQWUDFWRUVDQGVXSSOLHUVWRXVHWKHUHF\FOLQJDQG GLVSRVDOELQVRQVLWH 0DNH5HF\FOLQJ&RQYHQLHQW x 3ODFHUHF\FOLQJGXPSVWHUVDVFORVHWRWKHZRUNDUHDDVSRVVLEOH x &HQWUDOL]HFXWWLQJRSHUDWLRQVWRUHGXFHZDVWHDQGVLPSOLI\ VRUWLQJ x $OZD\VSURYLGHDFRQWDLQHUIRUWUDVKZLWKWKHUHF\FOLQJFRQWDLQHU x x &UHDWHPDSVRIWKHMREVLWHWRVKRZKDXOHUVH[DFWO\ZKHUHWR SODFHDQGSLFNXSWKHLUGXPSVWHUV 5HF\FOLQJ ,WHPVWR5HF\FOH x x x x x x x x &HLOLQJ7LOH &DUGERDUGSDFNDJLQJ &DUSHW 'U\ZDOO 3DLQW :RRG 3ODVWLF¿OPV -REVKDFNZDVWH &DVH6WXG\ :DVWH5HF\FOLQJ 7KHFLW\RI6HDWWOHPL[HVLWVRZQ³6HDWWOH*UD\´ SDLQWIURPSDLQWGURSSHGRIIIRUUHF\FOLQJ 7KHÀRRULQJLVPDGHRIYLQWDJHKDUGZRRGUHF\FOHG IURP\HDUROG1HZ(QJODQGEDUQV 5HIHUHQFHV ³&RQVWUXFWLRQ:DVWH7\SHVDQG4XDQWLWLHV´2LNRV*UHHQ %XLOGLQJ6RXUFHKWWSRLNRVFRPOLEUDU\ZDVWHW\SHVKWPO ³&RQWUDFWRUV*XLGH6HDWWOH.LQJ&RXQW\6DYH0RQH\DQG5HVRXUFHV WKURXJK-RE6LWH5HF\FOLQJDQG:DVWH3UHYHQWLRQ´.LQJ&RXQW\ 6ROLG:DVWH'LYLVLRQ6HDWWOHKWWSGQUPHWURNFJRYVZGEL]SURJVXVB EXLOG&RQ*XLGHSGI 2¶%ULHQ.³%HVW0DQDJHPHQW3UDFWLFHVDQG7RROVIRU-RE6LWH5HF\FOLQJ DQG:DVWH5HGXFWLRQLQ+DZDLL´7KH6WDWHRI+DZDLL 5HF\FOLQJ &KDSWHU(QHUJ\ *RDO7RUHGXFHWKHFRQVXPSWLRQRIHQHUJ\GXULQJFRQVWUXFWLRQDQG RSHUDWLRQRIWKHEXLOGLQJ %HQH¿WV x x x x /RZHUJHQHUDOFRQGLWLRQVFRVWV 6DYLQJVRIKXQGUHGVRIGROODUVHDFK\HDURQXWLOLW\ELOOV 5HGXFHGDLUSROOXWLRQ 5HGXFHGUHOLDQFHXSRQQDWXUDOUHVRXUFHVIRVVLOIXHOVE\ XWLOL]LQJUHQHZDEOHHQHUJ\VRXUFHV .H\V,VVXHV x x x x 8VHVXVWDLQDEOHHQHUJ\VRXUFHWHFKQRORJLHVVXFKDVZLQG WXUELQHVRUVRODUSDQHOVDQGUHGXFHWKHHQHUJ\FRQVXPHGGXULQJ FRQVWUXFWLRQ5HI6HFWLRQ 3URSHUO\LQVXODWHDQGVHDODOOEXLOGLQJSHQHWUDWLRQVDQG HQFORVXUHV &UHDWHFRQWLQXRXVDLUEDUULHUV5HI6HFWLRQ &UHDWHFRQWLQXRXVLQVXODWLRQEDUULHUV (PHUJLQJ7HFKQRORJ\ $OWHUQDWLYHHQHUJ\VRXUFHVVXFKDV ZLQGWXUELQHVDQGVRODUSDQHOVXWLOL]H IUHHDQGVXVWDLQDEOHHQHUJ\VRXUFHV 5HIHUHQFHV %URZQ:³6XVWDLQDEOH'HVLJQ&RQVWUXFWLRQDQG/DQG 'HYHORSPHQW´6RXWKIDFH(QHUJ\,QVWLWXWH ³(QHUJ\(I¿FLHQF\3D\V´6RXWKIDFH(QHUJ\,QVWLWXWH (QHUJ\ &KDSWHU(QHUJ\ 3ODQQLQJ *RDO7RUHGXFHHQHUJ\FRQVXPSWLRQWKURXJKSURSHUSODQQLQJ .H\,VVXHV x x x 3URSHUSODQQLQJZKLOHLQVWDOOLQJV\VWHPVLVUHTXLUHGWRDYRLG HQHUJ\ORVVWKURXJKSRRUO\FRQVWUXFWHGV\VWHPV 3RRUFRPPLVVLRQLQJLVUHVSRQVLEOHIRULQFUHDVHGHQHUJ\FRVWV WKURXJKRXWWKHOLIHRIDEXLOGLQJ 3URSHUFRPPLVVLRQLQJRIWHQLQFUHDVHVHQHUJ\HI¿FLHQF\E\WR SHUFHQWUHVXOWLQJLQHQHUJ\VDYLQJVRIWKRXVDQGVRIGROODUV HDFK\HDU $FWLRQVDQG0HWKRGV x x x x (QJDJHDFRPPLVVLRQLQJDXWKRULW\DVHDUO\LQWKHFRQVWUXFWLRQ SURFHVVDVSRVVLEOHSUHIHUDEO\GXULQJSUHFRQVWUXFWLRQ,WLV SHUPLVVLEOHWRXVHDTXDOL¿HGPHPEHURIWKHGHVLJQ¿UPDVORQJ DVWKDWLQGLYLGXDOLVQRWUHVSRQVLEOHIRUGHVLJQFRQVWUXFWLRQ PDQDJHPHQWRUVXSHUYLVLRQ $FRPPLVVLRQLQJSODQVKRXOGEHFUHDWHGDVHDUO\LQWKHSURMHFW DVSRVVLEOH7KLVSODQVKRXOGHYROYHWREHFRPHPRUHGHWDLOHG DVWKHSURMHFWSURJUHVVHV 3URSHUO\WUDLQEXLOGLQJVWDIISULRUWRWXUQRYHU7KHFRPPLVVLRQLQJ DXWKRULW\PXVWDVVHPEOHZULWWHQYHUL¿FDWLRQWKDWWUDLQLQJZDV FRQGXFWHGIRUDOOFRPPLVVLRQHGV\VWHPV $FRPPLVVLRQLQJUHSRUWPXVWEHSUHVHQWHGWRWKHRZQHUDIWHU FRPPLVVLRQLQJLVFRPSOHWH (QHUJ\ &DVH6WXG\ 6DYLQJV5HVXOWLQJIURP&RPPLVVLRQLQJ$FWLYLWLHV 7KH2UHJRQ2I¿FHRI(QHUJ\VWXGLHGGLUHFWHQHUJ\VDYLQJVIRUWZR EXLOGLQJVDIWHUDSSO\LQJSURSHUFRPPLVVLRQLQJWHFKQLTXHV,QD VTXDUHIRRWRI¿FHEXLOGLQJHQHUJ\VDYLQJVRISHU\HDUZHUH IRXQGWKURXJKFRPPLVVLRQLQJDFWLYLWLHV,QDVTXDUHIRRWRI¿FH EXLOGLQJHQHUJ\VDYLQJVHTXDOWRSHU\HDUZHUHJDLQHGWKURXJK FRPPLVVLRQLQJ 5HIHUHQFHV *UHHQLQJ)HGHUDO)DFLOLWLHV%UDWWOHERUR9W%XLOGLQJ*UHHQ,QF ³2UHJRQ'HSDUWPHQWRI(QHUJ\+RPHSDJH´6WDWHRI2UHJRQ KWWSZZZHQHUJ\VWDWHRUXV (QHUJ\ &KDSWHU(QHUJ\ *HQHUDO&RQGLWLRQV *RDO7RUHGXFHHQHUJ\FRQVXPSWLRQRIWHPSRUDU\SRZHUV\VWHPV .H\,VVXHV x x x 8VLQJDOWHUQDWLYHVRXUFHVRISRZHUWRUHGXFHWHPSRUDU\V\VWHPV¶ FRVWVDQGWKHLULPSDFWRQWKHHQYLURQPHQW *UHHQSRZHUFRPSDQLHVRIIHUDQDWLRQZLGHVRXUFHRIJUHHQ SRZHUZKLFKKDVOHVVLPSDFWRQWKHHQYLURQPHQW 6PDOOFKDQJHVLQWHPSRUDU\+9$&DQGOLJKWLQJV\VWHPVFDQ UHGXFHHQHUJ\XVHDQGORZHUFRVWV $FWLRQVDQG0HWKRGV 5HGXFLQJ(QHUJ\&RQVXPSWLRQGXULQJ&RQVWUXFWLRQ x (QFRXUDJHFDUSRROLQJRUSXEOLFWUDQVSRUWDWLRQWRWKHMREVLWH x 0LQLPL]HWKHXVHRIOLWVLJQDJHRXWGRRUVDQGPD[LPL]HWKHXVHRI SKRWRYROWDLFSDQHOVIRUFRQVWUXFWLRQDQGZDUQLQJVLJQDJHZKHUH DSSOLFDEOH x 6KXWRIIWHPSRUDU\OLJKWLQJV\VWHPVZKHQQRWLQXVH x x x x 8VHFRPSDFWÀXRUHVFHQWEXOEVUDWKHUWKDQLQFDQGHVFHQWEXOEV IRUWHPSRUDU\OLJKWLQJ&RPSDFWÀXRUHVFHQWEXOEVXVH SHUFHQWOHVVHQHUJ\DQGODVWWLPHVORQJHUWKDQLQFDQGHVFHQW EXOEV $YRLGXQQHFHVVDU\XVHRIWHPSRUDU\OLJKWLQJV\VWHPVGXULQJ GD\OLJKWKRXUV 8VHHQHUJ\HI¿FLHQW+9$&HTXLSPHQWIRUWHPSRUDU\VHUYLFHV 3XUFKDVHSRZHUIURPJUHHQSRZHUFRPSDQLHVOLVWHGRQWKH IROORZLQJSDJH (QHUJ\ *UHHQ3RZHU&RPSDQLHV /RFDWLRQVRIWKH*UHHQ3RZHU&RPSDQLHVOLVWHG DERYHGRQRWOLPLWWKHLUSRZHUJULGUDGLXV0DQ\RI WKHDERYHFRPSDQLHVRIIHUQDWLRQZLGHSRZHUVXSSO\ 5HIHUHQFHV ³*UHHQ0DUNHWLQJ´*UHHQ3RZHU1HWZRUN KWWSZZZHHUZHQHUJ\JRYJUHHQSRZHUPDUNHWLQJVKWPO (QHUJ\ &KDSWHU(QHUJ\ 'HPROLWLRQDQG$EDWHPHQW *RDO7RUHGXFHHQHUJ\FRQVXPSWLRQGXULQJGHPROLWLRQDQG DEDWHPHQW .H\,VVXHV x x &KORURÀXRURFDUERQV&)&VDUHFRQ¿UPHGR]RQHGHSOHWLQJ VXEVWDQFHVWKDWFRQWULEXWHWRJOREDOZDUPLQJ 7KH8QLWHG6WDWHVLVRQHRIWKHZRUOG¶VODUJHVWHPLWWHUVRIR]RQH GHSOHWLQJVXEVWDQFHV $FWLRQVDQG0HWKRGV 5HGXFH(QHUJ\&RQVXPSWLRQGXULQJ'HPROLWLRQ x 3URYLGHDOLVWLQJRIDOOH[LVWLQJKHDWLQJYHQWLODWLRQDLU FRQGLWLRQLQJDQGUHIULJHUDWLRQ+9$&5FRPSRQHQWVDQGVWDWH ZKHWKHUHDFKFRPSRQHQWXVHV&)&V x )RUFRPSRQHQWVWKDWXVH&)&VSURYLGHDSKDVHRXWSODQ GHVFULELQJKRZWKHVHFRPSRQHQWVZLOOEHFRQYHUWHGRUUHPRYHG DQGUHSODFHGZLWK&)&IUHHFRPSRQHQWV (QHUJ\ 6XVWDLQDEOH&RQVWUXFWLRQ)DFW &KORURÀXRURFDUERQV&)&V &)&VFRQWULEXWHDSSUR[LPDWHO\SHUFHQWWRJOREDOZDUPLQJ7KH VRXUFHRIWKHVHJDVHVLVOHDNLQJDLUFRQGLWLRQHUVUHIULJHUDWRUVLQGXVWULDO VROYHQWVSURGXFWLRQRISODVWLFIRDPDQGDHURVROSURSHOODQWV7KHVH JDVHVWDNH\HDUVWRUHDFKWKHVWUDWRVSKHUHDQGWUDS WLPHVDVPXFKKHDWSHUPROHFXOHDVFDUERQGLR[LGH7KHVHJDVHVDUH DOVRUHVSRQVLEOHIRUWKHKROHLQWKHR]RQHOD\HU7KH\UHPDLQLQWKH VWUDWRVSKHUHIRU\HDUV KWWSZZZFVFODUNHGXaPDFSK\VOHWV*OREDO3ROOXWLRQFKORURÀRXURFDURQVKWPO 5HIHUHQFHV 'H)HOLFH'³&KORURÀRXURFDUERQV´1$6$*OHQQ5HVHDUFK &HQWHUKWWSZZZJUFQDVDJRY:::.$HURVWXGZHG JORVVDU\FIFVKWPO (QHUJ\ &KDSWHU(QHUJ\ 6LWH:RUN *RDO7RUHGXFHHQHUJ\FRQVXPSWLRQWKURXJKLPSURYHGVLWHZRUN SUDFWLFHV .H\,VVXHV x x &RQVWUXFWLRQGHEULVW\SLFDOO\GLVSRVHGRILQODQG¿OOVFDQQRZEH XVHGDVDQDOWHUQDWLYHIXHOVRXUFHWKURXJKELRPDVVWHFKQRORJ\ ([FHVVLYHVLWHZRUNDQGVRLOUHPRYDOGLVWXUEWKHVXUURXQGLQJ YHJHWDWLRQZKLFKLVFRVWO\WRUHSODFH $FWLRQVDQG0HWKRGV x x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¿HU7KLVKHDWLVWKHQFRQYHUWHGWRPHFKDQLFDOHQHUJ\LQDVWHDP WXUELQHRUJDVWXUELQH7KHWXUELQHWKHQWXUQVDJHQHUDWRUWKDWSURGXFHV HOHFWULFLW\ &XUUHQWO\ELRPDVVWHFKQRORJ\FRQWULEXWHVDSSUR[LPDWHO\ SHUFHQWRIWKHQDWLRQ¶VHQHUJ\DQGLVULVLQJ7KHPRVWHFRQRPLFDO VRXUFHRIELRPDVVIXHOLVUHVLGXHIURPFRQVWUXFWLRQVLWHV 5HIHUHQFHV ³(TXLSPHQW6XSSOLHVDQG6SHFLDOWLHV´7H[DV&RQWUDFWRUV 6XSSO\KWWSZZZWH[DVFRQWUDFWRUVFRP (QHUJ\ &KDSWHU(QHUJ\ )RXQGDWLRQV *RDO7RUHGXFHHQHUJ\FRQVXPSWLRQWKURXJKIRXQGDWLRQV .H\,VVXHV x x ([WHQVLYHKHDWORVVRFFXUVLQPDQ\VWUXFWXUHVWKURXJKWKHVODE RQJUDGHLQWRWKHJURXQG 3URSHULQVXODWLRQWHFKQLTXHVDUHUHTXLUHGLQDOOEXLOGLQJV $FWLRQVDQG0HWKRGV ,QVWDOODQ(QHUJ\(I¿FLHQW)RXQGDWLRQ x %HIRUHSRXULQJDVODERQJUDGHHQVXUHWKDWWKHSURSHULQVXODWLRQ KDVEHHQLQVWDOOHG&RPSOHWHO\LQVXODWHWKHERWWRPRIWKHVODE RQJUDGHDQGIRXQGDWLRQZDOOV x 6HDODOOSHQHWUDWLRQVLQWKHVODE x 8VH,QVXODWHG&RQFUHWH)RUPV,&)VVHH&DVH6WXG\LQ 6HFWLRQ x ,&)VDUHPDGHRIIRDPLQVXODWLRQWKDWLVMRLQHGE\SODVWLFVQDSV VWHHOVWUDSVRURWKHUPHDQV:KHQFRQFUHWHLVSRXUHGLQWRWKHVH IRUPVWKHUHVXOWLVDVWURQJZDOOV\VWHPZLWKDQ5YDOXHRI EHWZHHQ5DQG5GHSHQGLQJRQWKHIRDPWKLFNQHVV$Q DGGLWLRQDOEHQH¿WRI,&)VLVWKHWKHUPDOPDVVRIWKHFRQFUHWH ZKLFKUHGXFHVWHPSHUDWXUHVZLQJVEHWZHHQRXWVLGHDQGLQVLGH WHPSHUDWXUHV (QHUJ\ &DVH6WXG\ 5DGLDQW)ORRU+HDWLQJ 7KH%LJ+RUQ+RPH,PSURYHPHQW&HQWHU/RFDWHGLQ6LOYHUWKRUQH &2LVRQHRIWKHQDWLRQ¶V¿UVWFRPPHUFLDOEXLOGLQJVWRLQWHJUDWH KLJKSHUIRUPDQFHGHVLJQLQDUHWDLOVSDFH,WLVH[SHFWHGWRUHGXFH HQHUJ\FRVWVE\SHUFHQWZKHQFRPSDUHGWRVLPLODUUHWDLOEXLOGLQJV %HFDXVHWKHEXLOGLQJLVKHDWHGXVLQJUDGLDQWKHDWLQJLQWKHFRQFUHWH VODEÀRRUVFRPSOHWHO\LQVXODWLQJWKHERWWRPRIWKHÀRRUDQG IRXQGDWLRQVZDOOVZDVLPSRUWDQWWRPLQLPL]HKHDWORVVWRWKHJURXQG 5HIHUHQFHV ³%LJKRUQ+RPH,PSURYHPHQW&HQWHU´1DWLRQDO5HQHZDEOH (QHUJ\/DERUDWRU\KWWSZZZQUHOJRYEXLOGLQJVKLJKSHUIRUPDQFH ELJKRUQKWPO %URZQ:³6XVWDLQDEOH'HVLJQ&RQVWUXFWLRQDQG/DQG 'HYHORSPHQW´6RXWKIDFH(QHUJ\,QVWLWXWH (QHUJ\ &KDSWHU(QHUJ\ 6XEVWUXFWXUH *RDO7RUHGXFHHQHUJ\FRQVXPSWLRQWKURXJKWKHEXLOGLQJ¶V VXEVWUXFWXUH .H\,VVXHV x x ([WHQVLYHKHDWORVVLQWKHEXLOGLQJRFFXUVWKURXJKWKH VXEVWUXFWXUHLQWRWKHJURXQG 3URSHULQVXODWLRQWHFKQLTXHVDUHUHTXLUHGLQDOOEXLOGLQJV $FWLRQVDQG0HWKRGV ,QVWDOODQ(QHUJ\(I¿FLHQW6XEVWUXFWXUH x &RPSOHWHO\LQVXODWHWKHIRXQGDWLRQZDOOV x 6HDODOOSHQHWUDWLRQVWKURXJKWKHIRXQGDWLRQZDOOV x ,QVXODWHG&RQFUHWH)RUPV,&)VDUHPDGHRIIRDPLQVXODWLRQ ZKLFKLVMRLQHGE\SODVWLFVQDSVVWHHOVWUDSVRURWKHUPHDQV :KHQFRQFUHWHLVSRXUHGLQWRWKHVHVIRUPVWKHUHVXOWLVD VWURQJZDOOV\VWHPZLWKDQ5YDOXHRIEHWZHHQ5DQG5 GHSHQGLQJRQWKHIRDPWKLFNQHVV$QDGGLWLRQDOEHQH¿WRI,&)V LVWKHWKHUPDOPDVVRIWKHFRQFUHWHZKLFKUHGXFHVWHPSHUDWXUH VZLQJVEHWZHHQRXWVLGHDQGLQVLGHWHPSHUDWXUHV (QHUJ\ (PHUJLQJ7HFKQRORJLHV ,QVXODWHG&RQFUHWH)RUPV +DELWDWIRU+XPDQLW\UHFHQWO\ GHGLFDWHGVL[QHZDIIRUGDEOHKRPHV LQ<RQNHUV1<7KHVHKRXVHV ZHUHPDGHDIIRUGDEOHE\WKHXVHRI LQVXODWHGFRQFUHWHIRUPVDQGVWUXFWXUDO LQVXODWHGSDQHOVZKLFKUHGXFHGWKH FRQVWUXFWLRQFRVWVDQG\HDUO\KHDWLQJ DQGFRROLQJFRVWV 5HIHUHQFHV %URZQ:³6XVWDLQDEOH'HVLJQ&RQVWUXFWLRQDQG/DQG 'HYHORSPHQW´6RXWKIDFH(QHUJ\,QVWLWXWH &URVELH0³+DELWDWIRU+XPDQLW\)RXQGHU3UDLVHV(QHUJ\ (I¿FLHQW*UHHQ+RXVHV´6WHYHQ:LQWHU$VVRFLDWHV,QFKWWSZZZ VZLQWHUFRP3UHVV5HOHDVHV<RQNHUVSGI (QHUJ\ &KDSWHU(QHUJ\ 6XSHUVWUXFWXUH *RDO7RUHGXFHHQHUJ\FRQVXPSWLRQWKURXJKWKHVXSHUVWUXFWXUH .H\,VVXHV x x +HDWORVVLQDEXLOGLQJ¶VVXSHUVWUXFWXUHUDLVHVKHDWLQJDQG FRROLQJFRVWVVXEVWDQWLDOO\ 7KHVXSHUVWUXFWXUHRIDEXLOGLQJFDQFRQWULEXWHWRWKHLQVXODWLQJ YDOXHRIWKHH[WHULRUZDOOV $FWLRQVDQG0HWKRGV x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¿W RI,&)VLVWKHWKHUPDOPDVVRI WKHFRQFUHWHZKLFKUHGXFHV WHPSHUDWXUHVZLQJVEHWZHHQ RXWVLGHDQGLQVLGHWHPSHUDWXUHV 5HIHUHQFHV %URZQ:³6XVWDLQDEOH'HVLJQ&RQVWUXFWLRQDQG/DQG 'HYHORSPHQW´6RXWKIDFH(QHUJ\,QVWLWXWH (QHUJ\ &KDSWHU(QHUJ\ ([WHULRU(QFORVXUH *RDO7RUHGXFHHQHUJ\FRQVXPSWLRQWKURXJKWKHEXLOGLQJ¶VH[WHULRU HQFORVXUH .H\,VVXHV x x 3URSHULQVXODWLRQWHFKQLTXHVZLOOUDLVHWKHZDOOV5YDOXHWKXV UHGXFLQJKHDWORVVWKURXJKWKHZDOOV ,IDQH[WHULRUZDOOLVQRWSURSHUO\VHDOHGKHDWZLOOHVFDSHWKURXJK WKHJDSV $FWLRQVDQG0HWKRGV $LU6HDOLQJ x 6HDOERWWRPSODWHRIH[WHULRUZDOOV x 6HDOLQVLGHHGJHRIERWWRPSODWHDIWHUH[WHULRUZDOOVDUHHUHFWHG x 6HDOZLQGRZVDQGH[WHULRUGRRUVLQWRURXJKRSHQLQJXVLQJVSUD\ IRDPRUEDFNHUURG x 6HDOH[WHULRUSHQHWUDWLRQVHJH[WHULRUPRXQWHGOLJKW¿[WXUHV RXWVLGHRXWOHWVDQGSKRQHDQGHOHFWULFVHUYLFHKROHV (QVXUHSURSHULQVWDOODWLRQDQGFRQWLQXLW\RIYDSRUEDUULHULQZDOO V\VWHPV ,QVXODWLRQ x 8VHHQHUJ\HI¿FLHQWIUDPLQJHJHQHUJ\FRUQHUV7ZDOOVDQG LQVXODWHGKHDGHUVWRLPSURYHFRYHUDJH x )DFHVWDSOHEDWWEHFDXVHVLGHVWDSOLQJFUHDWHVFKDQQHOVIRUDLU ÀRZDQGFRPSUHVVHVWKHLQVXODWLRQWKXVUHGXFLQJWKH5YDOXH,I IDFHVWDSOLQJLVQRWDQRSWLRQXVHXQIDFHGEDWWVRUFDUHIXOO\VLGH VWDSOHZLWKLQDTXDUWHURIDQLQFKRIWKHVWXGIDFH x &XWZDOOLQVXODWLRQEDWWWR¿WDURXQGZLULQJZDOORXWOHWVDQG SOXPELQJ x (QVXUHWKDWWKHUHDUHQRYRLGVLQWKHLQVXODWLRQEDUULHUDQG WKDWPDWHULDOVDUHLQVWDOOHGDFFRUGLQJWRWKHPDQXIDFWXUHU¶V VSHFL¿FDWLRQV 7KHUPDO%UHDNV x x 8VHWKHUPDOEUHDNVIRUVWHHOVWXGZDOODQGZLQGRZFRQVWUXFWLRQ (QHUJ\ (PHUJLQJ7HFKQRORJLHV $LU6HDOLQJ $LUVHDOLQJLVDQHDV\ZD\WRUHGXFHHQHUJ\FRQVXPSWLRQLQDEXLOGLQJ KWWSZZZVWDWHQHXVKRPH1(2KRPHBFRQVWGHWDLOVDVGKWP 5HIHUHQFHV ³$LU6HDOLQJ´6RXWKIDFH(QHUJ\,QVWLWXWH ³5HVLGHQWLDO(QHUJ\(I¿FLHQW'HVLJQDQG&RQVWUXFWLRQ&KHFNOLVW´ 2DN5LGJH1DWLRQDO/DERUDWRU\ ³:DOO,QVXODWLRQ´6RXWKIDFH(QHUJ\,QVWLWXWH (QHUJ\ &KDSWHU(QHUJ\ 5RR¿QJ *RDO7RUHGXFHHQHUJ\FRQVXPSWLRQWKURXJKWKHURRIV\VWHP .H\,VVXHV x x (QHUJ\ORVVWKURXJKWKHURRILQFUHDVHVWKHEXLOGLQJ¶VKHDWLQJDQG FRROLQJFRVWV $OEHGRWUDSVKHDWZLWKLQWKHEXLOGLQJUDLVLQJWKHFRROLQJORDG $FWLRQVDQG0HWKRGV x x x x x x 8VHSUHIDEULFDWHGURR¿QJSDQHOV 3URSHUO\VHDODOOMRLQWVRQURRI (QVXUHSURSHULQVXODWLRQ±VWDJJHUMRLQWVLQOD\HU &DXONDQGVHDODOOURRISHQHWUDWLRQV 8VHPDWHULDOVZKLFKUDLVHWKHUHÀHFWLYLW\RIWKHURR¿QJV\VWHP 5HÀHFWLYHURRIVKDYHDORZHUKHDWDEVRUSWLRQZKLFKUHGXFHV FRROLQJFRVWV3RVVLEOHPDWHULDOVDUHIRLOODPLQDWHGIRDPERDUG DQGOLJKWFRORUHGEDOODVWV 8VHHQHUJ\VWDUUDWHGURRIFRPSOLDQWKLJKUHÀHFWDQFHDQGKLJK HPLVVLYLW\URR¿QJRULQVWDOODJUHHQYHJHWDWHGURRIV\VWHP$YRLG XVLQJEODFNRUPHWDOURR¿QJPDWHULDOV (QHUJ\ 6XVWDLQDEOH&RQVWUXFWLRQ)DFW $OEHGR5RR¿QJ $OEHGRLVDUDWLRRIUHÀHFWHG VRODUUDGLDWLRQWRWKHWRWDO DPRXQWWKDWLQFLGHQWRQWKDW VXUIDFH7KHDPRXQWRIDOEHGR IRXQGLQDURRIGLUHFWO\DIIHFWV WKHFRROLQJORDGVZLWKLQWKH EXLOGLQJ5RR¿QJPDWHULDOV ZLWKDORZDOEHGRVXFKDV EODFNURR¿QJIHOWDQGPHWDO URRIVUDLVHWKHDPRXQWRI HQHUJ\UHTXLUHGWRFRROWKH LQWHULRURIWKHEXLOGLQJ5RR¿QJ PDWHULDOVZLWKDKLJKDOEHGR VXFKDVOLJKWFRORUHGEDOODVW NHHSWKHFRROLQJORDGVORZ 5HIHUHQFHV ³,QVXODWLQJ<RXU&RPPHUFLDO5RRI6\VWHP´5RR¿QJ3HRSOH KWWSZZZURR¿QJSHRSOHFRP,QGH[FIP"3DJH&RPPHUFLDO (QHUJ\ &KDSWHU(QHUJ\ ,QWHULRU&RQVWUXFWLRQ *RDO7RUHGXFHHQHUJ\FRQVXPSWLRQWKURXJKLQWHULRUZDOOV .H\,VVXHV x x 3RRULQVXODWLRQLQLQWHULRUZDOOVZLOODOORZKHDWORVVEHWZHHQ URRPVFUHDWLQJDQXQFRPIRUWDEOHZRUNHQYLURQPHQW 2FFXSDQWSURGXFWLYLW\LVLPSDFWHGE\WKHFRPIRUWRIWKHLQWHULRU VSDFH $FWLRQVDQG0HWKRGV x x x x x x 6HDOHOHFWULFDOVZLWFKDQGRXWOHWER[HVWRGU\ZDOOZLWKFDXON 6HDOOLJKW¿[WXUHER[HVWRGU\ZDOOZLWKFDXONRUIRDP ,QVWDOOLQVXODWLRQEHWZHHQFRQGLWLRQHGDQGXQFRQGLWLRQHGVSDFHV /LPLWWKHXVHRIEORFNLQJWRLPSURYHLQVXODWLRQFRYHUDJH 8VHVLQJOHVWXGVRUODGGHUEORFNLQJWRVHFXUHWKHFRQQHFWLRQRI LQWHULRUSDUWLWLRQZDOOVWRH[WHULRUZDOOV )DFHVWDSOHEDWWEHFDXVHVLGHVWDSOLQJFUHDWHVFKDQQHOVIRUDLU ÀRZDQGFRPSUHVVHVWKHLQVXODWLRQWKXVUHGXFLQJWKH5YDOXH,I IDFHVWDSOLQJLVQRWDQRSWLRQXVHXQIDFHGEDWWVRUFDUHIXOO\VLGH VWDSOHZLWKLQDTXDUWHURIDQLQFKRIWKHVWXGIDFH 5HIHUHQFHV ³$LU6HDOLQJ´6RXWKIDFH(QHUJ\,QVWLWXWH ³5HVLGHQWLDO(QHUJ\(I¿FLHQW'HVLJQDQG&RQVWUXFWLRQ&KHFNOLVW´ 2DN5LGJH1DWLRQDO/DERUDWRU\ ³:DOO,QVXODWLRQ´6RXWKIDFH(QHUJ\,QVWLWXWH (QHUJ\ &KDSWHU(QHUJ\ &RQYH\LQJ6\VWHPV *RDO7RUHGXFHHQHUJ\FRQVXPSWLRQLQFRQYH\LQJV\VWHPV .H\,VVXHV x x &RQYHQWLRQDOHOHYDWRUVSRZHUHGE\DOWHUQDWLQJFXUUHQWUHTXLUH ODUJHDPRXQWVRIHQHUJ\DQGXWLOL]HK\GUDXOLFÀXLGZKLFKLV GHWULPHQWDOWRWKHHQYLURQPHQW &RQYHQWLRQDOHOHYDWRUVUHTXLUHHLWKHUDSHQWKRXVHRUDODUJH PHFKDQLFDOURRP (PHUJLQJ7HFKQRORJ\ *HDUOHVV(OHYDWRUV (OHYDWRUVH[LVWZKLFKDUHFRQVWUXFWHGZLWKDQ$&JHDUOHVVPRWRURID[LDO V\QFKURQRXVGHVLJQZLWKDQLQWHJUDWHGWUDFWLRQVKHDYHEUDNHÀDQJH DQGURWRU,WGRHVQRWXVHK\GUDXOLFÀXLGZKLFKFDQFRQWDPLQDWHXSWR JDOORQVRIJURXQGZDWHUZLWKHYHQDRQHTXDUWOHDN x 8VHGLQVLPSOH[RUGXSOH[LQVWDOODWLRQVIRUODQGLQJVXSWR RIWUDYHODQGRSHUDWHDWIHHWSHUPLQXWH x x 3RZHUHGE\DFRPSDFWSRZHUIXODQGOLJKWZHLJKWSHUPDQHQW PDJQHWPRWRUZKLFKGRHVQRWXVHK\GUDXOLFÀXLGDQGGRHVQRW UHTXLUHDSHQWKRXVHRUODUJHPDFKLQHURRP %\XVLQJ$&JHDUOHVVWHFKQRORJ\JHDUOHVVHOHYDWRUVFDQORZHU SRZHUFRQVXPSWLRQE\SHUFHQWFRPSDUHGWRFRQYHQWLRQDO $&SRZHUHGWUDFWLRQHOHYDWRUV 5HIHUHQFHV ³%OXHWRRWK6KRUW5DQJH5DGLR7HFKQRORJ\´&RQVWUXFWLRQ ,QGXVWU\,QVWLWXWHKWWSZZZQHZWHFKQRORJLHVRUJ(&7,QWHUQHW EOXHWRRWKKWP ³)LEHU2SWLF/DVHU7HFKQRORJ\IRU'HFRQWDPLQDWLQJ0HWDOV´ &RQVWUXFWLRQ,QGXVWU\,QVWLWXWHKWWSZZZQHZWHFKQRORJLHVRUJ(&7 2WKHU¿EHURSWLFODVHU (QHUJ\ &KDSWHU(QHUJ\ 0HFKDQLFDO *RDO7RUHGXFHHQHUJ\FRQVXPSWLRQLQPHFKDQLFDOV\VWHPV .H\,VVXHV x x 6HDOLQJVHDPVDQGSHQHWUDWLRQV ,QVXODWLRQRISLSHVDQGGXFWZRUN $FWLRQVDQG0HWKRGV &OHDQ¿OWHUVZHHNO\GXULQJFRQVWUXFWLRQ 'XFWZRUN x 3HUPDQHQWO\VHDODOOGXFWZRUNMRLQWVZLWKPDVWLFDWKLFNSDVWH WKDWSURYLGHVDGXUDEOHVHDOIRUDOOW\SHVRIGXFWV x ,QVXODWHDOOGXFWZRUN x (QVXUHGXFWVDUHQRWSLQFKHGRUUHVWULFWHG x (QVXUHWKDWSURSHUDLUÀRZLVEHLQJGHOLYHUHGWRHDFKGLIIXVHU x 5HGXFHEHQGVDQGWXUQVLQSLSLQJDQGGXFWZRUN x /LQHDQGVHDOWKHLQWHULRURIWKHUHWXUQSOHQXPZLWKGXFWERDUG 3HQHWUDWLRQV x 6HDODOOSOXPELQJDQG+9$&SHQHWUDWLRQVEHWZHHQFRQGLWLRQHG DQGXQFRQGLWLRQHGVSDFHV x 6HDODOOGXFWERRWVWRÀRRURUGU\ZDOOZLWKFDXONIRDPRUPDVWLF x 6HDOWKHDLUKDQGOHUFORVHWDQGWKHDLUKDQGOHULWVHOILQFOXGLQJ VHDOLQJWKHDLUKDQGOHUWRWKHSODWIRUP x 6HDOUHWXUQDLUJULOOHVDWSRLQWRISHQHWUDWLRQWKURXJKZDOO x 6HDODURXQGWKHPHWDOÀXHRIFRPEXVWLRQHTXLSPHQW 'HVLJQ6XJJHVWLRQV x 'HVLJQGXFWZRUNXVLQJHLWKHUODUJHUFURVVVHFWLRQDODUHDVWR UHGXFHDLUUHVLVWDQFHDQGIDQHQHUJ\5RXQGRURYDOGXFWFURVV VHFWLRQDOVKDSHVZLOOIXUWKHUUHGXFHYHQWLODWLRQORVVHV x x x 'HVLJQFKLOOHUVWREHVWHSHQJDJHGWRPHHWSDUWLDOORDGGHPDQGV 8VHORFDOL]HGKRWZDWHUHTXLSPHQWUDWKHUWKDQFHQWUDOL]HG HTXLSPHQW/RFDOL]HGHTXLSPHQWLVW\SLFDOO\PRUHHI¿FLHQWWKDQ FHQWUDOL]HG (QHUJ\ &RPPLVVLRQLQJ x 7KHFRPPLVVLRQLQJDXWKRULW\PXVWREVHUYHLQVWDOODWLRQRI HDFKW\SHRIFRPPLVVLRQHGIHDWXUHDQGV\VWHPWRHQVXUHWKH\ DUHSURSHUO\LQVWDOOHGDFFRUGLQJWRFRQWUDFWGRFXPHQWVDQG PDQXIDFWXUHU¶VLQVWUXFWLRQVDQGWKDWRWKHUEXLOGLQJV\VWHPV RUFRPSRQHQWVDUHQRWFRPSURPLVLQJWKHSHUIRUPDQFHRIWKH IHDWXUH x 6WDUWXSDQGFKHFNRXWUHVXOWVPXVWEHFOHDUO\GRFXPHQWHG DFFRUGLQJWRPDQXIDFWXUHU¶VZULWWHQLQVWUXFWLRQVDQGFRQWUDFW GRFXPHQWV &RQVWUXFWDELOLW\&RQVLGHUDWLRQV x 5HGXFHHOERZVLQSLSLQJDQGGXFWZRUNWRUHGXFHSXPSLQJIDQ SRZHUDQGLPSURYHFRQVWUXFWDELOLW\ &DVH6WXG\ 'XFWZRUN&RQQHFWLRQV 0HFKDQLFDOHTXLSPHQWDQGGXFWZRUN MRLQWVDQGFRQQHFWLRQVVKRXOGEH SURSHUO\LQVXODWHGDQGVHDOHGWR SUHYHQWHQHUJ\ORVVHV 5HIHUHQFHV ³$LU6HDOLQJ´6RXWKIDFH(QHUJ\,QVWLWXWH %DUFLN0³%UHDWKLQJ(DV\7KDQNVWR'XFWDQG$LU6HDOLQJ´ 6RXWKIDFH-RXUQDORI6XVWDLQDEOH%XLOGLQJ (QHUJ\ &KDSWHU(QHUJ\ (OHFWULFDO *RDO7RUHGXFHHQHUJ\FRQVXPSWLRQLQHOHFWULFDOV\VWHPV $FWLRQVDQG0HWKRGV x x x x x x 9HULI\DQGFRQ¿UPLQFRPLQJDPSHUDJHDQGYROWDJHDQGXVH FDSDFLWRUVWRDGMXVWWKHSRZHUIDFWRUDVQHFHVVDU\ 1RWFKRXWLQVXODWLRQDURXQGER[HVDQGXVHVFUDSVEHKLQGER[HV ,QFDQGHVFHQWEXOEVUHTXLUHPRUHHQHUJ\WKDQWKHLUDOWHUQDWLYHV ,IUHFHVVHGOLJKWVDUHLQVWDOOHGLQDFHLOLQJZLWKDQXQFRQGLWLRQHG VSDFHDERYHLWXVHRQO\8QGHUZULWHUV/DERUDWRU\8/DSSURYHG ¿[WXUHVWKDWDUHDLUWLJKWDUH,QVXODWLRQ&RQWDFW,&UDWHGDQG PHHW$670(UHTXLUHPHQWV )RUHPHUJHQF\OLJKWLQJXVH/('OLJKWHPLWWLQJGLRGHRUSKRWR OXPLQHVFHQWHQHUJ\VWDUUDWHGH[LWVLJQV$/('VLJQXVHV SHUFHQWRIWKHHQHUJ\ZLWKDOLIHH[SHFWDQF\RI\HDUV 8VHPHWDOKDOLGHODPSVORZWHPSHUDWXUHÀXRUHVFHQWVDQGRU VRODUSRZHUHG¿[WXUHVIRUH[WHULRUOLJKWLQJ (PHUJLQJ7HFKQRORJ\ :LQG3RZHU 7KHQHZGHVLJQRI1HZ<RUN¶V)UHHGRP7RZHU LQFRUSRUDWHVD:ZLQGIDUP7KLV IDUPZLOOWDNHDGYDQWDJHRIWKHPLOHSHUKRXU DYHUDJHZLQGVSHHGWRSURGXFHDQHVWLPDWHG PLOOLRQN:KRIJUHHQHOHFWULFLW\DQQXDOO\D VLJQL¿FDQWSRUWLRQRIWKHEXLOGLQJ¶VHQHUJ\XVH 5HIHUHQFHV ³$%%3RZHU)DFWRU&RUUHFWLRQ&DSDFLWRUV´)LYH6WDU(OHFWULF 0RWRUVKWWS¿YHVWDUHOHFWULFFRPSIFDEEKWP ³)UHHGRP7RZHUWR,QFRUSRUDWH:LQG7XUELQHV´*UHHQ%XLOGLQJ 1HZVKWWSRLNRVFRPQHZVKWP$QFKRU ³:DOO,QVXODWLRQ´6RXWKIDFH(QHUJ\,QVWLWXWH ³:KROH+RXVH(QHUJ\&KHFNOLVW´6RXWKIDFH(QHUJ\,QVWLWXWH (QHUJ\ &KDSWHU(QHUJ\ ,QIRUPDWLRQ7HFKQRORJ\ *RDO7RUHGXFHHQHUJ\FRQVXPSWLRQWKURXJKWKHXVHRILQIRUPDWLRQ WHFKQRORJ\V\VWHPV .H\,VVXHV x x 'HVNWRSFRPSXWHUVUHTXLUHPRUHHQHUJ\WKDQODSWRSFRPSXWHUV &RQWUROV\VWHPVIRUOLJKWLQJFRQWUROVFDQVDYHLQHQHUJ\FRVWV $FWLRQVDQG0HWKRGV x x x x x x x x 8VHODSWRSVLQVWHDGRIGHVNWRSFRPSXWHUVRQWKHMREVLWH 8VHÀDWVFUHHQSDQHOVLIXVLQJDGHVNWRSFRPSXWHU 8VHDSULQWHUZLWKGXSOH[FDSDELOLW\WRDOORZSULQWLQJRQERWK VLGHVRIDVKHHWRISDSHU &RQVLGHUUHSODFLQJROGHUHTXLSPHQWZLWK(QHUJ\6WDU±FRPSOLDQW HTXLSPHQW 8VHDSRZHUVWULSZLWKDQRQRIIVZLWFKZKLFKFDQPDNHLWHDV\ WRWXUQRIIDOO\RXUFRPSXWHUHTXLSPHQWDWRQFH 'RQRWWXUQRQ\RXUFRPSXWHUXQWLO\RXQHHGWRXVHLWDQGWXUQLW RIIZKHQ\RXDUH¿QLVKHG ,QVWDOOHLWKHUDQHIIHFWLYHHQHUJ\PDQDJHPHQWDQGFRQWUROV V\VWHPRUD''&GLUHFWGLJLWDOFRQWUROHOHFWURQLFV\VWHP 2FFXSDQF\VHQVRUVUHVXOWLQHQHUJ\VDYLQJVRIXSWRSHUFHQW $QRWKHUDOWHUQDWLYHLVWRXVHGD\OLJKWLQJFRQWUROVZKLFKPHDVXUH WKHOHYHORIGD\OLJKWDQGLOOXPLQDWHWKHLQWHULRUVSDFHDFFRUGLQJO\ &DVH6WXG\ 8VLQJHTXLSPHQWVXFKDVQRWHERRNFRPSXWHUV DQGSRZHUVWULSVLQWKHMREWUDLOHUZLOOUHGXFHWKH FRQVXPSWLRQRIHQHUJ\ 5HIHUHQFHV 1RYRJURGVN6³(QHUJ\6DYLQJ7LSVIRU&DPSXV&RPSXWHU 8VHUV´%HUNHOH\&RPSXWLQJ&RPPXQLFDWLRQV (QHUJ\ &KDSWHU(QHUJ\ (TXLSPHQW *RDO7RUHGXFHHQHUJ\FRQVXPSWLRQZKHQXVLQJFRQVWUXFWLRQ HTXLSPHQW .H\,VVXHV x x 1RQUDWHGHTXLSPHQWVXFKDVH[WHQVLRQFRUGVXVHH[FHVV HQHUJ\ 1HZWHFKQRORJLHVSURYLGHDOWHUQDWLYHVWRFRQYHQWLRQDOGLHVHO SRZHUHGHTXLSPHQW7KHVHDOWHUQDWLYHIXHOVDUHOHVVKDUPIXOWR WKHHQYLURQPHQW $FWLRQVDQG0HWKRGV x x 3XUFKDVHDQGXWLOL]HHQHUJ\VWDUUDWHGHTXLSPHQW %LRGLHVHOHTXLSPHQWXVHVELRPDVVSODQWPDWHULDODVDQ DOWHUQDWLYHIXHOVRXUFH%LR'LHVHOHTXLSPHQWXVHVOHVVIXHODQG HPLWVIHZHUJDVHVLQWRWKHHQYLURQPHQW &DVH6WXG\ 7KHXVHRI(QHUJ\6WDUDSSOLDQFHV DQGHTXLSPHQWFDQJUHDWO\UHGXFH WKHHQHUJ\FRQVXPSWLRQRIDEXLOGLQJ 5HJXODU PDLQWHQDQFHDQG WXQLQJRIKHDY\ PDFKLQHU\RQDMREVLWHFDQJUHDWO\ UHGXFHIXHOFRQVXPSWLRQ 5HIHUHQFHV ³(QHUJ\(I¿FLHQW$SSOLDQFHV´6RXWKIDFH(QHUJ\,QVWLWXWH ³(QHUJ\6WDU´(QHUJ\6WDUKWWSZZZHQHUJ\VWDUJRY (QHUJ\ &KDSWHU(QHUJ\ )LQLVKHV *RDO7RUHGXFHHQHUJ\FRQVXPSWLRQWKURXJKEXLOGLQJ¿QLVKHV .H\,VVXHV x x ,QVXODWLQJSDLQWVFDQKHOSUHGXFHKHDWLQJDQGFRROLQJORVVHV WKURXJKLQWHULRUDQGH[WHULRUZDOOV $XWRPDWHGZLQGRZEOLQGVFDQDLGLQGD\OLJKWLQJDWWHPSWV $FWLRQVDQG0HWKRGV x x $SSO\LQVXODWLQJSDLQWVWRLQWHULRUZDOOVDQGH[WHULRUZDOOVDQG URRIWRUHGXFHKHDWORVVEHWZHHQLQWHULRUVSDFHVDQGWKHRXWVLGH 3URSHUO\LQVWDOODXWRPDWHGZLQGRZEOLQGVLQDOOZLQGRZV7KHVH EOLQGVZLOODXWRPDWLFDOO\RSHQDQGFORVHLQUHVSRQVHWRGD\OLJKW ORDGV (QHUJ\DQG7HFKQRORJ\ &HUDPLF3DLQW,QVXODWLRQ ,QVXODWLYHSDLQWFRDWLQJVDUHDYDLODEOH ZKLFKFDQEHDSSOLHGWRERWKWKH LQWHULRUDQGH[WHULRU¿QLVKHVRI DEXLOGLQJ:KHQDSSOLHGWRWKH H[WHULRUZDOOVDQGURRIWKHFRDWLQJV UHÀHFWH[WHULRUKHDWDQGPRLVWXUH :KHQDSSOLHGWRLQWHULRUZDOOVLW FRQWUROVWKHORVVRIKHDWGXULQJWKH ZLQWHUE\UHÀHFWLQJKHDWEDFNLQWRWKH LQWHULRUVSDFH 5HIHUHQFHV 3RSH-³6XSHU7KHUP&HUDPLF3DLQW,QVXODWLRQ´&RQVWUXFWLRQ ,QGXVWU\,QVWLWXWHKWWSZZZQHZWHFKQRORJLHVRUJ(&7&LYLOVXSHUWKHUPKWP (QHUJ\ &KDSWHU%XLOGLQJDQG0DWHULDO5HXVH *RDO7RHQDEOHWKHUHXVHRIIDFLOLWLHVV\VWHPVHTXLSPHQWSURGXFWV DQGPDWHULDOV ³,I\RXZHUHWRWDNHWKLVIDFLOLW\DSDUWRUZDQWWRUHFRQ¿JXUHWKLV VSDFHLQWKHIXWXUHZKDWZRXOGPDNHWKDWMREHDVLHUDQGPD[LPL]H WKHDELOLW\WRUHXVHPDWHULDOV"´ %HQH¿WV x x x x 5HGXFHVIXWXUHUHQRYDWLRQFRVWV 6DYHVPRQH\ZLWKXVHGPDWHULDOV 'LYHUWVYDOXDEOHPDWHULDOVIURPODQG¿OOVDQGVDYHRQWLSSLQJIHHV ,PSURYHVEXLOGLQJIDFLOLW\YDOXH%XLOGLQJVLQWKHIXWXUHWKDWDUH VLPSOHUWRUHQRYDWHUHFRQ¿JXUHRUHYHQGHFRQVWUXFWZLOOEHPRUH YDOXDEOH .H\,VVXHV x x x 5HGXFHDQGUHXVHPDWHULDOV ,PSURYHVSDFHDQGEXLOGLQJÀH[LELOLW\ 0D[LPL]HRSSRUWXQLWLHVIRUUHXVH $FWLRQVDQG0HWKRGV x x x x x 8VHVWDQGDUGL]HGPRGXODUFRQVWUXFWLRQWHFKQLTXHV 6HOHFW¿WWLQJVIDVWHQHUVDGKHVLYHVDQGVHDODQWVWKDWDOORZ IRUTXLFNHUGLVDVVHPEO\DQGIDFLOLWDWHWKHUHPRYDORIUHXVDEOH PDWHULDOV0DWHULDOUHXVHLVKLJKO\GHSHQGHQWXSRQWKH FRQQHFWLRQV &RQVLGHUIXWXUHZRUNHUVDIHW\DQGKHDOWK5HI&K 8WLOL]HUHXVDEOHPDWHULDOV$OLVWLVSURYLGHGDWHDFKSKDVH 'U\FRQVWUXFWLRQWHFKQLTXHVHJGU\ZDOOLQVWHDGRI&08EORFN HQDEOHSRWHQWLDOO\HDVLHUGLVPDQWOLQJ 9DOXH(QJLQHHULQJ6XJJHVWLRQV x x 0LQLPL]HGLVWULEXWLRQV\VWHPVZLWKLQVWUXFWXUDOZDOOV±DOORZVIRU VHOHFWLYHGHPROLWLRQ5HI6HFWLRQ 2SHQED\GHVLJQFRQFHSWVWRHOLPLQDWHLQWHULRUSDUWLWLRQV %XLOGLQJDQG0DWHULDO5HXVH x x x x x x x x 0DWFKWKHVWUXFWXUHDQG¿QLVKHGJULGOD\RXWWRUHGXFHZDVWH /HDYHVWUXFWXUDOVWHHODIWHU¿UHSURR¿QJH[SRVHG /RRNWRHOLPLQDWHDQ\WKLQJWKDWQHHGVWREHIRUPHG 6XJJHVWXVLQJDUDLVHGÀ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³$7HFKQLFDO0DQXDOIRU0DWHULDO&KRLFHVLQ6XVWDLQDEOH&RQVWUXFWLRQ´ 6WDWHRI&DOLIRUQLD,QWHJUDWHG:DVWH0DQDJHPHQW%RDUG 6DFUDPHQWR&$ %XLOGLQJDQG0DWHULDO5HXVH &KDSWHU%XLOGLQJDQG0DWHULDO5HXVH 3ODQQLQJ *RDO7RHQDEOHWKHUHXVHRIIDFLOLWLHVV\VWHPVHTXLSPHQWSURGXFWV DQGPDWHULDOV .H\,VVXHV x x x 5HGXFHDQGUHXVHPDWHULDOV ,PSURYHVSDFHDQGEXLOGLQJÀH[LELOLW\ 0D[LPL]HRSSRUWXQLWLHVIRUUHXVH $FWLRQVDQG0HWKRGV x x x x x x 6SHFLI\FRQWUDFWRUVZLWKH[SHULHQFHLQPDWHULDOUHXVHLH VDOYDJLQJ $VVLJQDUHDVRQVLWHIRUVWRULQJUHXVDEOHPDWHULDOV ,GHQWLI\PDWHULDOVWKDWDUHVDOYDJHGXULQJGHPROLWLRQDQGGXULQJ QHZFRQVWUXFWLRQ([WUDPDWHULDOVFDQEHGRQDWHGWR'502,I '502FDQQRWWDNHPDWHULDOVWKHQFRQVLGHU+DELWDWIRU+XPDQLW\ RUWKH8QLWHG:D\$OLVWRIRQOLQHPDWHULDOVH[FKDQJHSURJUDPV DUHOLVWHGLQ6HFWLRQ (I¿FLHQWO\UHPRYHXVHIXOLWHPVSULRUWRGHPROLWLRQ &RQVLGHUPDWHULDOVDOYDJHDVDZD\RIHFRQRPLFUHVRXUFH (GXFDWHZRUNHUVRQZKDWLVDSSURSULDWHWRVDOYDJHDQGWKLQJV WKH\FDQGRWRPDNHWKHEXLOGLQJUHXVDEOH 5HXVDEOH0DWHULDOV&KHFNOLVW $SSOLDQFHV %DWKURRP¿[WXUHV %ULFNV&08EORFN &DELQHWV &DUSHWLQJ &HLOLQJWLOHV 'LPHQVLRQDOOXPEHU 'RRUV )HQFLQJ 'XFWZRUN )ORRULQJ ,QVXODWLRQ /DQGVFDSLQJPDWHULDOV /LJKWLQJ¿[WXUHV 0DUEOH 0HWDOIUDPLQJ 3DQHOLQJ 6LJQDJH 3LSHV 26%SO\ZRRG 7LOH 7ULP0ROGLQJ :LQGRZV $OOZRRGLWHPV )XUQLWXUH 6WHHOPHPEHUV (TXLSPHQW %XLOGLQJDQG0DWHULDO5HXVH ,QIRUPDWLRQUHTXLUHGIRUIXWXUHEXLOGLQJUHXVH x x x x x x x $VEXLOWGUDZLQJVWRLGHQWLI\DQGORFDWHUHXVDEOHPDWHULDO 5HFRUGVRIDOOFKDQJHV $VVHWUHJLVWHUVVKRZLQJZKDWLVLQWKHEXLOGLQJDQGLWVUHF\FOLQJ DQGUHXVHSRWHQWLDO ,GHQWL¿FDWLRQRISRWHQWLDOO\KD]DUGRXVPDWHULDOV 3URYLGHGHWDLOVRISUHIDEULFDWHGXQLWVHJ¿[LQJSRLQWVDQG FDUU\LQJSRLQWV /DEHOLQJRIPDWHULDOVRQFHUHPRYHG $IXWXUHEXLOGLQJGHPROLWLRQSODQVKRXOGEHGHYHORSHGEDVHGXS RQWKHFRQVWUXFWLRQSURFHVV 5HIHUHQFHV *X\%DQG66KHOO'HVLJQIRU'HFRQVWUXFWLRQ&,%7DVN*URXS 'HFRQVWUXFWLRQ.DUOHVUXKH*HUPDQ\ ³5HVRXUFHIXO5HQRYDWLRQ´3RUWODQG0HWULF'HFRQVWUXFWLRQ 6LPSVRQ6³&RQVWUXFWLRQ:DVWH0DQDJHPHQW*XLGH0HWKRGV WR6DYH0RQH\DQG5HVRXUFHV´6WDWHRI:DVKLQJWRQ'HSDUWPHQWRI *HQHUDO$GPLQLVWUDWLRQ2O\PSLD:$ ³$7HFKQLFDO0DQXDOIRU0DWHULDO&KRLFHVLQ6XVWDLQDEOH&RQVWUXFWLRQ´ 6WDWHRI&DOLIRUQLD,QWHJUDWHG:DVWH0DQDJHPHQW%RDUG 6DFUDPHQWR&$ 9OHFN5(³$GYDQFHG&RQVWUXFWLRQDQG'HPROLWLRQ:DVWH 0DQDJHPHQWIRU)ORULGD%XLOGHUV´8QLYHUVLW\RI)ORULGD %XLOGLQJDQG0DWHULDO5HXVH &KDSWHU%XLOGLQJDQG0DWHULDO5HXVH *HQHUDO&RQGLWLRQV *RDO7RHQDEOHWKHUHXVHRIIDFLOLWLHVV\VWHPVHTXLSPHQWSURGXFWV DQGPDWHULDOV .H\,VVXHV x x 5HGXFHDQGUHXVHPDWHULDOV 0D[LPL]HRSSRUWXQLWLHVIRUUHXVHRIWHPSRUDU\VWUXFWXUHV $FWLRQVDQG0HWKRGV x x x 0LQLPL]HWKHXVHRIZRRGIRUWHPSRUDU\VWUXFWXUHVHJ SHGHVWULDQZDONZD\V 8VHSUHIDEULFDWHGFRPSRQHQWVZKHUHSRVVLEOH 8VHFRQQHFWLRQVWKDWDOORZIRUWKHHDVHRIGLVDVVHPEO\RI WHPSRUDU\VWUXFWXUHVVRWKDWPDWHULDOVFDQEHUHXVHG 5HXVDEOH0DWHULDOV&KHFNOLVW $SSOLDQFHV %DWKURRP¿[WXUHV %ULFNV&08EORFN &DELQHWV &DUSHWLQJ &HLOLQJWLOHV 'LPHQVLRQDOOXPEHU 'XFWZRUN )ORRULQJ :LQGRZV $OOZRRGLWHPV /LJKWLQJ¿[WXUHV 0HWDOIUDPLQJ 'RRUV 3LSHV 26%SO\ZRRG )XUQLWXUH (TXLSPHQW 3DQHOLQJ 6LJQDJH )HQFLQJ %XLOGLQJDQG0DWHULDO5HXVH &DVH6WXG\ $ERXWRIWKHGHPROLWLRQPDWHULDOVZHUHUHXVHGUHF\FOHGRUVROGIRU VDOYDJHLQ5(,¶VQHZPLOOLRQGROODUÀDJVKLSEXLOGLQJLQ6HDWWOH 5HIHUHQFHV ,Y\5$UFKLWHFWXUDO5HFRUG 6LPSVRQ6³&RQVWUXFWLRQ:DVWH0DQDJHPHQW*XLGH0HWKRGV WR6DYH0RQH\DQG5HVRXUFHV´6WDWHRI:DVKLQJWRQ'HSDUWPHQWRI *HQHUDO$GPLQLVWUDWLRQ2O\PSLD:$ %XLOGLQJDQG0DWHULDO5HXVH &KDSWHU%XLOGLQJDQG0DWHULDO5HXVH 'HPROLWLRQDQG$EDWHPHQW *RDO7RHQDEOHWKHUHXVHRIIDFLOLWLHVV\VWHPVHTXLSPHQWSURGXFWV DQGPDWHULDOV .H\,VVXHV x ,GHQWLI\DQGSURWHFWUHXVDEOHPDWHULDOV $FWLRQVDQG0HWKRGV &RQVLGHUDOWHUQDWLYHVWRDEDWHPHQWHJDVEHVWRVHQFDVHPHQW ±WKH(3$KDVLQFOXGHGVSUD\DSSOLHGHQFORVXUHVDOVRNQRZQDV HQFDVHPHQWDVDQDFFHSWDEOHDVEHVWRVDEDWHPHQWPHWKRG 'HPROLWLRQ'HFRQVWUXFWLRQ3URFHVV x ,VRODWHDQGPDNHVDIHVHUYLFHV x 5HPRYHKD]DUGRXVPDWHULDOV x 6RIWVWULSLHLQWHUQDO¿QLVKHVSDUWLWLRQVFDUSHWVVHUYLFHVHWF x 5HPRYHQRQORDGEHDULQJHOHPHQWV x 5HPRYHORDGEHDULQJHOHPHQWV x 3UHPDUNHWPDWHULDOVIRUUHXVH 'HPROLWLRQ3ODQ*XLGHOLQHV x x 5HIHUHQFHVHFWLRQ±3ODQQLQJ &DVH6WXG\ 'LVQH\¶V5HF\FOH3OXV3URJUDP ,QDORQH5HHG\&UHHN,PSURYHPHQW'LVWULFW5&,'DQG:DOW 'LVQH\:RUOGÂ5HVRUWGRQDWHGPRUHWKDQRIUHXVDEOHEXLOGLQJ VXSSOLHVWRORFDODIIRUGDEOHKRXVLQJSURJUDPVFKXUFKHVDQGQRQSUR¿W RUJDQL]DWLRQV 'RQDWHGLWHPVLQFOXGHG x x x x 3OXPELQJ¿[WXUHV 3DLQWV &DUSHWLQJ /XPEHU %XLOGLQJDQG0DWHULDO5HXVH 5HIHUHQFHV ³$UFKLWHFWXUDO6DOYDJH'LVPDQWOLQJDQG)XUQLWXUH´5HQRYDWRUV 5HVRXUFH,QFKWWSZZZUHQRYDWRUVUHVRXUFHFRP ³&RQVWUXFWLRQ0DWHULDO5HFRYHU\&RDOLWLRQ1DWLRQDO&DSLWDO5HJLRQ´ KWWSZZZFPUFXV +HUPDQQVVRQ-³7KH6DOYDJHG%XLOGLQJ0DWHULDOV([FKDQJH´ *UHHQ%XLOGLQJ5HVRXUFH*XLGHKWWSZZZJUHHQJXLGHFRPH[FKQDJH ³/LVWLQJRI5HXVH&HQWHUV´5H'2KWWSZZZUHGRRUJ/LVWV 5H'2B/LVWB2B:KWP9$ ³5HXVH'HYHORSPHQW2UJDQL]DWLRQ´5H'2KWWSZZZUHGRRUJ 6LPSVRQ6³&RQVWUXFWLRQ:DVWH0DQDJHPHQW*XLGH0HWKRGV WR6DYH0RQH\DQG5HVRXUFHV´6WDWHRI:DVKLQJWRQ'HSDUWPHQWRI *HQHUDO$GPLQLVWUDWLRQ2O\PSLD:$ ³8VHG%XLOGLQJ0DWHULDOV$VVRFLDWLRQ´&HQWHUIRU5H6RXUFH &RQVHUYDWLRQKWWSEFQERXOGHUFRXVHQYLURQPHQWXEPDLQGH[KWPO ³8VHG%XLOGLQJ0DWHULDOV([FKDQJH´KWWSEXLOGUHF\FOHQHW LQGH[KWPO 9OHFN5(³$GYDQFHG&RQVWUXFWLRQDQG'HPROLWLRQ:DVWH 0DQDJHPHQWIRU)ORULGD%XLOGHUV´8QLYHUVLW\RI)ORULGD ³:DVWH:LVH8SGDWH%XLOGLQJIRUWKH)XWXUH´(QYLURQPHQWDO 3URWHFWLRQ$JHQF\:DVKLQJWRQ'& %XLOGLQJDQG0DWHULDO5HXVH &KDSWHU%XLOGLQJDQG0DWHULDO5HXVH 6LWH:RUN *RDO7RHQDEOHWKHUHXVHRIIDFLOLWLHVV\VWHPVHTXLSPHQWSURGXFWV DQGPDWHULDOV .H\,VVXHV x 5HGXFHDQGUHXVHPDWHULDOV $FWLRQVDQG0HWKRGV x x x x x x &RQVLGHUXVLQJUHXVDEOHSHULPHWHUIHQFLQJDQGPDWHULDOVWKDW FDQEHWUDQVSRUWHGHDVLO\IURPVLWHWRVLWH &RQVLGHUXVLQJWKHH[FHVV¿OODQGRWKHUPDWHULDOVDV ODQGVFDSLQJ 5HF\FOHWKHVWRQHFUXVKDQGXVHDVJUDYHO &RQVLGHUXVLQJFOHDUHGOXPEHUDQGVKUXEVDVPXOFK 8VHVLWHIRUPZRUNWKDWLVUHXVDEOH0LQLPL]HWKHXVHRISO\ZRRG 'HVLJQDWHDUHDVIRUVWRULQJUHXVDEOHPDWHULDOV5HI&K 5HXVDEOH0DWHULDOV x x x x x /DQGVFDSLQJPDWHULDOV %ULFNFUXVKDQGXVHDV¿OO &RQFUHWHFUXVKDQGXVHDV¿OO $VSKDOWFUXVKDQGXVHDV¿OO 6WRQHFUXVKDQGXVHDV¿OO %XLOGLQJDQG0DWHULDO5HXVH &DVH6WXG\ .RGDN3DUN1< ³$JRRGZD\WRPLQLPL]HFRVWVDQGGRWKHULJKWWKLQJ´ ±*HRUJH7KRPDV.RGDN3ROOXWLRQ3UHYHQWLRQ3URJUDP0DQDJHU .RGDNGHFRQVWUXFWHGEXLOGLQJVRQWKHFRPSDQ\¶VDFUH SDUN x 9DOXDEOHZRRGHQEHDPVZHUHUHXVHG x WRQVRIEULFNFRQFUHWHDQGDVSKDOWZHUHUHFRYHUHG x .RGDNVWRFNSLOHGWKHPDWHULDOKLUHGDFRQWUDFWRUWRFUXVKLWLQWR DJJUHJDWHWZLFHHDFK\HDUDQGUHXVHGWKHPDWHULDORQVLWHDV ¿OO $VVRFLDWHG6DYLQJV x 1HDUO\PLOOLRQLQDYRLGHGGLVSRVDOIHHV x 7KHFRVWRIQHZDJJUHJDWHZDVFRPSDUDEOHWRWKHFRVWSHUWRQRI FUXVKLQJWKHVDOYDJHGPDWHULDO x 5HIHUHQFHV ³:DVWH:LVH8SGDWH%XLOGLQJIRUWKH)XWXUH´(QYLURQPHQWDO 3URWHFWLRQ$JHQF\:DVKLQJWRQ'& %XLOGLQJDQG0DWHULDO5HXVH &KDSWHU%XLOGLQJDQG0DWHULDO5HXVH )RXQGDWLRQV *RDO7RHQDEOHWKHUHXVHRIIDFLOLWLHVV\VWHPVHTXLSPHQWSURGXFWV DQGPDWHULDOV .H\,VVXHV x x 5HGXFHDQGUHXVHPDWHULDOV 0D[LPL]HRSSRUWXQLWLHVIRUIXWXUHUHXVH $FWLRQVDQG0HWKRGV x x x x x &RQVLGHUXVLQJSUHIDEULFDWHGIRXQGDWLRQZDOOV 5HXVDEOHIRUPZRUNIRUFRQFUHWHZDOOVUHGXFHVPDWHULDOXVH &RQVLGHUXVLQJKLJKTXDOLW\EORFNZLWKORZTXDOLW\PRUWDUWKLV DOORZVIRUHDVHRIUHPRYDODWGHPROLWLRQGHFRQVWUXFWLRQ 6XJJHVWXVLQJSUHFDVWFRQFUHWHIRXQGDWLRQZDOOSDQHOVZKHUH IHDVLEOH 'HVLJQDWHDUHDVIRUVWRULQJUHXVDEOHPDWHULDOV 5HXVDEOH0DWHULDOV x x &08EORFN )RUPZRUN %XLOGLQJDQG0DWHULDO5HXVH &KDSWHU%XLOGLQJDQG0DWHULDO5HXVH 6XEVWUXFWXUH *RDO7RHQDEOHWKHUHXVHRIIDFLOLWLHVV\VWHPVHTXLSPHQWSURGXFWV DQGPDWHULDOV .H\,VVXHV x x 5HGXFHDQGUHXVHPDWHULDOV 0D[LPL]HRSSRUWXQLWLHVIRUUHXVH $FWLRQVDQG0HWKRGV x x x x 'HVLJQDWHDUHDVIRUVWRULQJUHXVDEOHPDWHULDOV5HI&K 8VHSUHIDEULFDWHGDQGSUHDVVHPEOHGFRPSRQHQWV 8VHVWDQGDUGL]HGPRGXODUFRQVWUXFWLRQWHFKQLTXHV ,QVWDOOEXLOWLQWLHRIIVDQGFRQQHFWLRQSRLQWVIRUPDFKLQHU\WREH XVHGLQWKHHYHQWXDOUHPRYDORIWKHEXLOGLQJIURPWKHVLWH 0DWHULDOVWKDWIDFLOLWDWHIXWXUHUHXVH x 3UHFDVWFRQFUHWHZDOOV x )ORRUSDQHOV &ODGGLQJV\VWHPVFXUWDLQZDOOVVWHHOEHDPVHDVLO\VWDFNDEOH GXULQJGHFRQVWUXFWLRQ 0(3DVVHPEOLHV 5LJLGNH\W\SHMRLQWDOORZIRUHDV\GLVDVVHPEO\EROW±QR ZHOGLQJ 6D[HFOLSVIRUVWUXFWXUDOVWHHODOORZIRUHDV\GLVDVVHPEO\EROW ±QRZHOGLQJ x x x x 5HXVDEOH0DWHULDOV x 6WHHO x &08EORFN 5HIHUHQFHV *UXEH5$5LJLG.H\7\SH-RLQWIRU6XVWDLQDEOH8VHLQ6WHHO &RQVWUXFWLRQ,QWHUQDWLRQDO,URQDQG6WHHO,QVWLWXWH %XLOGLQJDQG0DWHULDO5HXVH &KDSWHU%XLOGLQJDQG0DWHULDO5HXVH 6XSHUVWUXFWXUH *RDO7RHQDEOHWKHUHXVHRIIDFLOLWLHVV\VWHPVHTXLSPHQWSURGXFWV DQGPDWHULDOV .H\,VVXHV x x 5HGXFHDQGUHXVHPDWHULDOV 0D[LPL]HRSSRUWXQLWLHVIRUIXWXUHPDWHULDOUHFRYHU\DQGUHXVH $FWLRQVDQG0HWKRGV x x x x x x x x 3UHIDEULFDWHZDOOV\VWHPV 6HOHFWFRQQHFWLRQVWKDWDUHHDVLO\GHPRXQWDEOHIURPWKH VWUXFWXUHHJEROWHGVWHHOFRQQHFWLRQVLQVWHDGRIZHOGHG FRQQHFWLRQV ,QVWDOOEXLOWLQWLHRIIVDQGFRQQHFWLRQSRLQWVIRUPDFKLQHU\WREH XVHGLQWKHHYHQWXDOUHPRYDORIWKHEXLOGLQJIURPWKHVLWH ,QFRUSRUDWHH[WHUQDO¿WWLQJVDURXQGWKHIDoDGHWRHQDEOHWKH IXWXUHDWWDFKPHQWRIVFDIIROGLQJ 6XJJHVWXVLQJEXLOGLQJHOHPHQWVEHDPVFROXPQVJLUGHUVHWF WKDWDUHOLJKWZHLJKWDQGHDV\WRKDQGOH :KHUHDSSOLFDEOHFRQVLGHUXVLQJMDFNHWW\SH¿UHSURR¿QJ7KLVLV HDVLHUWRUHPRYHWKDQVSUD\RQ¿UHSURR¿QJ 6XJJHVWXVLQJSUHFDVWFRQFUHWHÀRRUSDQHOVLQOLHXRIFDVW LQSODFHV\VWHPV7KH\UHVWRQWRSRIWKHZDOOVDQGGRQRW H[WHQGWKURXJKWKHKRUL]RQWDOSODQHRIWKHÀRRU7KLVHDVHVWKH GHFRQVWUXFWLRQSURFHVV 'HVLJQDWHDUHDVIRUVWRULQJUHXVDEOHPDWHULDOV 5HXVDEOH0DWHULDOV x 6WHHO x &08EORFN %XLOGLQJDQG0DWHULDO5HXVH 0DWHULDOVWKDWIDFLOLWDWHIXWXUHUHXVH x x x x x 3UHFDVWFRQFUHWHZDOOV )ORRUSDQHOV &ODGGLQJV\VWHPVFXUWDLQZDOOVVWHHOEHDPVHDVLO\VWDFNDEOH GXULQJGHFRQVWUXFWLRQ 0(3DVVHPEOLHV 0RGXODURUDOOEROWHGFRQQHFWLRQVIRUVWUXFWXUDOVWHHODOORZIRU HDV\GLVDVVHPEO\ &DVH6WXG\ &U\VWDO3DODFH+\GH3DUN/RQGRQ &U\VWDO3DODFHOLNHPDQ\WHPSRUDU\RU)HVWLYDOVWUXFWXUHVZDVGHVLJQHG WRUHVWRQLWVRULJLQDOVLWHIRURQO\RQH\HDUDQGWKHQEHGLVPDQWOHG7KH PRGXODUJODVVDQGLURQWUXVVFRPSRQHQWVZHUHOLIWHGLQWRSODFHZLWK KRUVHGUDZQKRLVWLQJGHYLFHVDQG¿HOGEROWHGIRUVLPSOL¿HGGLVDVVHPEO\ 7KHPRGXODUFRPSRQHQWVVLPSOL¿HGWKHFRQVWUXFWLRQSURFHVVDQGWKH EXLOGLQJZHQWWRJHWKHUOLNHDODUJHSX]]OH 5HIHUHQFHV *X\%DQG66KHOO'HVLJQIRU'HFRQVWUXFWLRQ&,%7DVN*URXS 'HFRQVWUXFWLRQ.DUOHVUXKH*HUPDQ\ 3XODVNL0HWDO'HVLJQIRU'HFRQVWUXFWLRQ0DWHULDO5HXVH DQG&RQVWUXFWDELOLW\7KH3LWWVEXUJK3DSHUV%HVWRI*UHHQEXLOG %UDWWOHERUR97%XLOGLQJ*UHHQ,QF %XLOGLQJDQG0DWHULDO5HXVH &KDSWHU%XLOGLQJDQG0DWHULDO5HXVH ([WHULRU(QFORVXUH *RDO7RHQDEOHWKHUHXVHRIIDFLOLWLHVV\VWHPVHTXLSPHQWSURGXFWV DQGPDWHULDOV .H\,VVXHV x x x 5HGXFHDQGUHXVHPDWHULDOV ,PSURYHVSDFHDQGEXLOGLQJÀH[LELOLW\ 0D[LPL]HRSSRUWXQLWLHVIRUUHXVH $FWLRQVDQG0HWKRGV x x x x x x x 6XJJHVWVLPSOLI\LQJRUVWDQGDUGL]LQJFRQQHFWLRQGHWDLOV 6HDUFKIRURSSRUWXQLWLHVWRHOLPLQDWHFDXONLQJVHDODQWVDQGRWKHU KLJKWROHUDQFHFRQQHFWLRQV7KHHDVHRIUHPRYLQJFRPSRQHQWV IRUUHSDLUDQGUHSODFHPHQWZLOORIIVHWWKHQHHGWRSURYLGHÀH[LEOH FRQQHFWLRQVDQGHOLPLQDWHWKHMRLQWLQJSURGXFWV 8VHHDVLO\UHPRYDEOHDGKHVLYHVDQGFDXONLQJ 5HWDLQDOOVFUDSPHWDODQGRWKHUPDWHULDOV5HXVHDQGGRQDWH DSSURSULDWHLWHPVUHF\FOHWKHUHVW &RQVLGHUHYHQWXDOGHFRQVWUXFWLRQLQWKHVHOHFWLRQRIEULFN DQGPRUWDUDOORZIRUHDV\VHSDUDWLRQ(QVXUHVHFXULW\IRUFH SURWHFWLRQDQGVWUXFWXUDOLVVXHVDUHQRWFRPSURPLVHG 'HVLJQDWHDUHDVIRUVWRULQJUHXVDEOHPDWHULDOV 8VHUHOHDVDEOHDGKHVLYHV 5HXVDEOH0DWHULDOV x x x x ([FHVVRUVOLJKWO\GDPDJHGPDWHULDOPD\EHGRQDWHG %ULFN &08%ORFN :LQGRZV %XLOGLQJDQG0DWHULDO5HXVH 0DWHULDOVWKDWIDFLOLWDWHIXWXUHUHXVH x x x 3UHFDVWFRQFUHWHZDOOV &ODGGLQJV\VWHPVFXUWDLQZDOOVVWHHOEHDPVLWHPVZKLFKDUH HDVLO\VWDFNDEOHGXULQJGHFRQVWUXFWLRQ 0(3DVVHPEOLHV &DVH6WXG\ +XPH+DOO*DLQHVYLOOH)/ %XLOGLQJ'HWDLOV x VTIWIRXUVWRU\LQVWLWXWLRQDOEXLOGLQJ x &RQFUHWHIUDPLQJZLWKDFRQFUHWHURRI x %XLOWXSWDUDQGJUDYHOURR¿QJ x ([WHULRUDQGLQWHULRUZDOOVZHUH&08ZLWKGRXEOHZ\WKHEULFN YHQHHU 5HXVHGPDWHULDOV x )L[WXUHVDQGKDUGZDUH x %ULFNYHQHHUZDVVHSDUDWHGIURPWKHFRQFUHWHVWUXFWXUH &RVWHIIHFWLYHQHVV x 5HPRYDORIKDUGZDUHDQG¿[WXUHVZDVFRVWHIIHFWLYH x 5HPRYDORIEULFNYHQHHUZDVQRWFRVWHIIHFWLYH x $GGLWLRQDOGHPRUWDULQJZDVUHTXLUHG x 0RUWDUZDVFHPHQWEDVHGDQGGLGQRWOHQGLWVHOIWRKDQG VHSDUDWLRQ x &RVWVZHUHDYRLGHGE\WKHPHFKDQLFDOUHGXFWLRQRIPDVRQU\DQG FRQFUHWHPDWHULDOVDQGUHPRYDORIUHLQIRUFLQJVWHHOIRUUHF\FOLQJ 5HIHUHQFHV *X\%DQG66KHOO'HVLJQIRU'HFRQVWUXFWLRQ&,%7DVN*URXS 'HFRQVWUXFWLRQ.DUOHVUXKH*HUPDQ\ %XLOGLQJDQG0DWHULDO5HXVH &KDSWHU%XLOGLQJDQG0DWHULDO5HXVH 5RR¿QJ *RDO7RHQDEOHWKHUHXVHRIIDFLOLWLHVV\VWHPVHTXLSPHQWSURGXFWV DQGPDWHULDOV .H\,VVXHV x x 5HGXFHDQGUHXVHPDWHULDOV 0D[LPL]HRSSRUWXQLWLHVIRUUHXVH $FWLRQVDQG0HWKRGV x x x x x x &RQVLGHUXVLQJSUHIDEULFDWHGURRIVWUXFWXUHV 6XJJHVWDOWHUQDWLYHVWRDVSKDOWURR¿QJVXFKDVUXEEHU 8VHVWDQGDUGL]HGPRGXODUFRQVWUXFWLRQWHFKQLTXHV 6LPSOLI\FRQQHFWLRQVWRIDFLOLWDWHUHPRYDORUUHSODFHPHQW 6HOHFW¿WWLQJVIDVWHQHUVDGKHVLYHVDQGVHDODQWVWKDWDOORZ IRUTXLFNHUGLVDVVHPEO\DQGIDFLOLWDWHWKHUHPRYDORIUHXVDEOH PDWHULDOV0DWHULDOUHXVHLVKLJKO\GHSHQGHQWXSRQWKH FRQQHFWLRQV &UHDWHDQDVVLJQHGDUHDIRUVDOYDJHPDWHULDO 5HXVDEOH0DWHULDOV x x x 0HWDOURR¿QJ 7LOHURR¿QJ 6ODWH %XLOGLQJDQG0DWHULDO5HXVH (PHUJLQJ7HFKQRORJ\ 5LJLG.H\7\SH-RLQWV $QLQWHOOLJHQWULJLGFRQQHFWLRQWHFKQRORJ\IRUWKHVWHHODVVHPEO\SURFHVV KDVEHHQGHYHORSHGDVDQDOWHUQDWLYHWREROWLQJDQGZHOGLQJDVVHPEOLHV 7KH6,*0$MRLQWZDV¿UVWXVHGLQWKHFRQVWUXFWLRQRIWKH&KULVWXV 3DYLOLRQDWWKH(;32LQ*HUPDQ\7KHNH\W\SHMRLQWDOORZHGIRUD VLPSOHGLVDVVHPEO\DQGUHDVVHPEO\SURFHVV 7KH6,*0$MRLQWZDVGHWHUPLQHGWREHWKHLGHDOULJLGFRQQHFWLRQIRUWKH IDoDGHDQGURRIHOHPHQWV 5HIHUHQFHV *UXEH5³$5LJLG.H\7\SH-RLQWIRU6XVWDLQDEOH8VHLQ6WHHO &RQVWUXFWLRQ´,QWHUQDWLRQDO,URQDQG6WHHO,QVWLWXWH *X\%DQG66KHOO'HVLJQIRU'HFRQVWUXFWLRQ&,%7DVN*URXS 'HFRQVWUXFWLRQ.DUOHVUXKH*HUPDQ\ 3XODVNL0&+HZLWWHWDO'HVLJQIRU'HFRQVWUXFWLRQ0DWHULDO 5HXVHDQG&RQVWUXFWDELOLW\7KH3LWWVEXUJK3DSHUV%HVWRI*UHHQEXLOG %UDWWOHERUR97%XLOGLQJ*UHHQ,QF %XLOGLQJDQG0DWHULDO5HXVH &KDSWHU%XLOGLQJDQG0DWHULDO5HXVH ,QWHULRU&RQVWUXFWLRQ *RDO7RHQDEOHWKHUHXVHRIIDFLOLWLHVV\VWHPVHTXLSPHQWSURGXFWV DQGPDWHULDOV .H\,VVXHV x x x 5HGXFHDQGUHXVHPDWHULDOV ,PSURYHVSDFHDQGEXLOGLQJÀH[LELOLW\ 0D[LPL]HRSSRUWXQLWLHVIRUUHXVH $FWLRQVDQG0HWKRGV x x x x x x x 6LPSOLI\FRQQHFWLRQVZLWKLQDZDOOV\VWHP8VHPHFKDQLFDO IDVWHQHUVRYHUFKHPLFDOERQGLQJV\VWHPVZKHUHSRVVLEOH /RRNWRFRQVROLGDWHSOXPELQJVHUYLFHV 6HDUFKIRURSSRUWXQLWLHVWRPLQLPL]HEXLOGLQJFRPSRQHQWVDQG PDWHULDOV 6HOHFW¿WWLQJVIDVWHQHUVDGKHVLYHVDQGVHDODQWVWKDWDOORZ IRUTXLFNHUGLVDVVHPEO\DQGIDFLOLWDWHWKHUHPRYDORIUHXVDEOH PDWHULDOV0DWHULDOUHXVHLVKLJKO\GHSHQGHQWXSRQWKH FRQQHFWLRQV &RQVLGHUPDLQWHQDQFHDQGGLVDVVHPEO\ORJLVWLFVHJDFFHVV 'U\FRQVWUXFWLRQWHFKQLTXHVHJGU\ZDOOHQDEOHSRWHQWLDOO\ HDVLHUGLVPDQWOLQJWKDQZHWFRQVWUXFWLRQWHFKQLTXHVHJ&08 EORFNZDOOV 6XJJHVWOHDYLQJVWUXFWXUDOVWHHOH[SRVHG x x x 'HPRXQWDEOHGU\ZDOO &08EORFN 0DWHULDOVWKDWIDFLOLWDWHIXWXUHUHXVH x 5HXVDEOH0DWHULDOV x 'HPRXQWDEOHGU\ZDOO 3UHIDEULFDWHGZDOOSDQHOVHJVPDUWZDOOV 0(3DVVHPEOLHV %XLOGLQJDQG0DWHULDO5HXVH x :KHDWVWUDZLQWHULRUSDUWLWLRQVZLWKLQWHJUDOSDSHUIDFLQJ &DVH6WXG\ 'U\ZDOO6DOYDJLQJ6DYHV0RQH\ (YHQZLWKDGGHGODERUIRUFDUHIXOUHPRYDO9HUPRQW¶VODUJHVWFRQVWUXFWLRQ FRPSDQ\VDYHGLQDYRLGHGODQG¿OOFRVWVE\VDOYDJLQJ GHPRXQWDEOHGU\ZDOO +RZGLGWKH\GRLW" 7KH\SXWDQRWLFHLQWKHORFDOSDSHURIIHULQJGU\ZDOOIUHHWRDQ\RQHZKR ZRXOGSLFNLWXSRQVKHHWPLQLPXPORWV 7KH5HVXOWV %\WKHDIWHUQRRQRIWKHGD\WKHDUWLFOHUDQDOOWKHGU\ZDOOZDVVSRNHQ IRU³$VIDVWDVZHFRXOGWDNHLWGRZQLWZDVJRQH´3HRSOHFRPLQJ IRUGU\ZDOODOVRKDXOHGRIIDERXWVTIWRIFDUSHWLQJVDYLQJWKH FRPSDQ\DIHZWKRXVDQGGROODUVPRUHLQDYRLGHGODQG¿OOFRVWV 7KLVZDVDZLQZLQVLWXDWLRQIRUHYHU\RQHLQYROYHGDQGLWKDSSHQHG EHFDXVHVRPHRQHDWWKHFRQVWUXFWLRQFRPSDQ\KDGKLVH\HVRSHQDQG KLVPLQGZRUNLQJ 5HIHUHQFHV )OHWFKHU623RSRYLFHWDO³'HVLJQLQJIRU)XWXUH5HXVHDQG 5HF\OLQJ´6FKRRORI$UFKLWHFWXUH6KHI¿HOG8QLYHUVLW\:HVWHUQ%DQN 6KHI¿HOG *X\%DQG66KHOO'HVLJQIRU'HFRQVWUXFWLRQ&,%7DVN*URXS 'HFRQVWUXFWLRQ.DUOHVUXKH*HUPDQ\ :LOVRQ$%LJ6DYLQJVIURP'U\ZDOO6DOYDJH(QYLURQPHQWDO %XLOGLQJ1HZV %XLOGLQJDQG0DWHULDO5HXVH &KDSWHU%XLOGLQJDQG0DWHULDO5HXVH &RQYH\LQJ6\VWHPV *RDO7RHQDEOHWKHUHXVHRIIDFLOLWLHVV\VWHPVHTXLSPHQWSURGXFWV DQGPDWHULDOV .H\,VVXHV x 0D[LPL]HRSSRUWXQLWLHVIRUUHXVH $FWLRQVDQG0HWKRGV x 5HVHDUFKOHDVLQJRSWLRQVWKURXJKWKHPDQXIDFWXUHU %XLOGLQJDQG0DWHULDO5HXVH &KDSWHU%XLOGLQJDQG0DWHULDO5HXVH 0HFKDQLFDO *RDO7RHQDEOHWKHUHXVHRIIDFLOLWLHVV\VWHPVHTXLSPHQWSURGXFWV DQGPDWHULDOV .H\,VVXHV x x x 5HGXFHDQGUHXVHPDWHULDOV ,PSURYHVSDFHDQGEXLOGLQJÀH[LELOLW\ 0D[LPL]HRSSRUWXQLWLHVIRUUHXVH $FWLRQVDQG0HWKRGV x x x x x x x 6XJJHVWFRQVROLGDWLQJSOXPELQJVHUYLFHV 8WLOL]HSUHIDEULFDWHGDQGSUHDVVHPEOHGFRPSRQHQWV 8VHVWDQGDUGL]HGPRGXODUFRQVWUXFWLRQWHFKQLTXHV /RRNIRURSSRUWXQLWLHVWRVHSDUDWHRXW0(3DQGRWKHURYHUKHDG GLVWULEXWLRQOLQHVWRIDFLOLWDWHWKHHYHQWXDOUHPRYDOXSJUDGHRIWKH V\VWHPV (QVXUHDOOYDOYHVDQGHTXLSPHQWLVHDVLO\DFFHVVLEOH 6HOHFW¿WWLQJVIDVWHQHUVDGKHVLYHVDQGVHDODQWVWKDWDOORZ IRUTXLFNHUGLVDVVHPEO\DQGIDFLOLWDWHWKHUHPRYDORIUHXVDEOH PDWHULDOV0DWHULDOUHXVHLVKLJKO\GHSHQGHQWXSRQWKH FRQQHFWLRQV 6XJJHVWPLQLPL]LQJGLVWULEXWLRQV\VWHPVZLWKLQVWUXFWXUDOZDOOV ±WKLVDOORZVIRUVHOHFWLYHGHPROLWLRQ 5HXVDEOH0DWHULDOV x x x 'XFWZRUN (TXLSPHQWSXPSVIDQV$+8VFRROLQJFRLOVUDGLDWRUVHWF 3LSHV %XLOGLQJDQG0DWHULDO5HXVH 3(15(1&3UDFWLFH :HGJH8QLYHUVDO6SDFH3ODQ 7KH8QLYHUVDO6SDFH3ODQ863IRU WHQDQWRI¿FHDUHDVLQWKH3HQWDJRQ 5HQRYDWLRQ:HGJHSURMHFW SURYLGHVDÀH[LEOHHQYLURQPHQWZKLFK LVHDVLO\DQGHI¿FLHQWO\UHFRQ¿JXUHG 7KH)DQ3RZHUHG,QGXFWLRQ8QLW 0HFKDQLFDOV\VWHPDOORZHGIRU WKHVSDFHÀH[LELOLW\,WUHGXFHGWKH DPRXQWRIGXFWZRUNUHTXLUHGE\ DOORZLQJUHWXUQDLUWREHWDNHQGLUHFWO\ IURPWKHRFFXSLHGVSDFH 7KH863GHVLJQSURYLGHVWKHIROORZLQJEHQH¿WV x x x x x x 6SDFHÀH[LELOLW\ :DVWHUHGXFWLRQ *UHDWO\LQFUHDVHGDFFHVVWRQDWXUDOOLJKWDQGWKHRXWGRRUV (DVHRIPDLQWHQDQFH (I¿FLHQWLQWHJUDWLRQRIPHFKDQLFDOHOHFWULFDODQG WHOHFRPPXQLFDWLRQV\VWHPV 'XUDELOLW\ 5HIHUHQFHV )OHWFKHU6HWDO³'HVLJQLQJIRU)XWXUH5HXVHDQG5HF\OLQJ´ 6FKRRORI$UFKLWHFWXUH6KHI¿HOG8QLYHUVLW\:HVWHUQ%DQN6KHI¿HOG *X\%DQG66KHOO'HVLJQIRU'HFRQVWUXFWLRQ&,%7DVN*URXS 'HFRQVWUXFWLRQ.DUOHVUXKH*HUPDQ\ 3XODVNL0&+HZLWWHWDO'HVLJQIRU'HFRQVWUXFWLRQ0DWHULDO 5HXVHDQG&RQVWUXFWDELOLW\7KH3LWWVEXUJK3DSHUV%HVWRI*UHHQEXLOG %UDWWOHERUR97%XLOGLQJ*UHHQ,QF %XLOGLQJDQG0DWHULDO5HXVH &KDSWHU%XLOGLQJDQG0DWHULDO5HXVH (OHFWULFDO *RDO7RHQDEOHWKHUHXVHRIIDFLOLWLHVV\VWHPVHTXLSPHQWSURGXFWV DQGPDWHULDOV .H\,VVXHV x x x 5HGXFHDQGUHXVHPDWHULDOV ,PSURYHVSDFHDQGEXLOGLQJÀH[LELOLW\ 0D[LPL]HRSSRUWXQLWLHVIRUUHXVH $FWLRQVDQG0HWKRGV x x x x 5HPRYHDQGUHF\FOHDOOFRSSHUZLULQJ7KLVZLOODGGWRWKH VDOYDJHLQFRPH &RQVLGHUXVLQJUHXVDEOHPRGXODUZLULQJV\VWHPV 3UHZLULQJPDWHGSOXJVDQGFOLSRQPRXQWLQJV\VWHPVIRU OLJKWLQJ¿[WXUHVUHGXFHRYHUKHDGZRUNLQVWDOODWLRQWLPHDQG VDIHW\KD]DUGV 6XUIDFHPRXQWHOHFWULFDOZLULQJWRDOORZIRUHDVHRI UHFRQ¿JXUDWLRQ 5HXVDEOH0DWHULDOV x x x x x x x 0RWRUV 7UDQVIRUPHUV &LUFXLW%UHDNHUV 6ZLWFKJHDU 3DQHOERDUGV &RQGXLW &DEOHWUD\V 5HIHUHQFHV 7VDR,7D&,QWHJUDWHG3URGXFW3URFHVV'HYHORSPHQWE\D /LJKW)L[WXUH0DQXIDFWXUHU$QQXDO&RQIHUHQFHRQWKH,QWHUQDWLRQDO *URXSIRU/HDQ&RQVWUXFWLRQ,*/&6LQJDSRUH %XLOGLQJDQG0DWHULDO5HXVH &KDSWHU%XLOGLQJDQG0DWHULDO5HXVH ,QIRUPDWLRQ7HFKQRORJ\ *RDO7RHQDEOHWKHUHXVHRIIDFLOLWLHVV\VWHPVHTXLSPHQWSURGXFWV DQGPDWHULDOV .H\,VVXHV x x ,PSURYHEXLOGLQJVSDFHDQGÀH[LELOLW\WRPD[LPL]HUHXVH 6LPSOLI\IXWXUHUHQRYDWLRQVIRUWHFKQRORJ\XSJUDGHV $FWLRQVDQG0HWKRGV x x ,QVWDOOODUJHUFRQGXLWDQGUDFHZD\VIRUXSJUDGHVH[SDQVLRQ 6XUIDFHPRXQWZLULQJWRDOORZIRUVLPSOHUHFRQ¿JXUDWLRQ &DVH6WXG\ ,QWHOOLJHQW:RUNSODFH&DUQHJLH0HOORQ8QLYHUVLW\ 7KH,QWHOOLJHQW:RUNSODFHDW &08ZDVGHVLJQHGWRSURYLGH XQSUHFHGHQWHGOHYHOVRI RUJDQL]DWLRQDOÀH[LELOLW\DQG WHFKQRORJLFDODGDSWDELOLW\-XVWLQ WLPHFRQQHFWLYLW\DQGUHGXQGDQF\ DUHDFFRPSOLVKHGE\SURYLGLQJ x x x x x 0RGXODU´UDFNVDVVDWHOOLWHFORVHWV +DUQHVVHGUROORXWZLULQJSRZHUPHUJHGGDWDYRLFHYLGHR +RPHUXQVZLWKFOLSFRQQHFWVDEVRUEFKDQJLQJWHFKQRORJLHVRI SHULSKHUDOVQHWZRUNVVHUYHUV/$1V 2SHQFDEOHWUD\VXQGHUDQDFFHVVÀRRUGLYLGHGSRZHUDQGGDWD JULGRIVHUYLFHQRGHVRQPHWHUWHWKHUV 5HORFDWDEOHER[HV 5HIHUHQFHV ³&HQWHUIRU%XLOGLQJ3HUIRUPDQFHDQG'LDJQRVWLFV´6FKRRORI $UFKLWHFWXUH&DUQHJLH0HOORQ8QLYHUVLW\KWWSZHOGDUFFPXHGXFESGLQGH[KWPO %XLOGLQJDQG0DWHULDO5HXVH &KDSWHU%XLOGLQJDQG0DWHULDO5HXVH (TXLSPHQW *RDO7RHQDEOHWKHUHXVHRIIDFLOLWLHVV\VWHPVHTXLSPHQWSURGXFWV DQGPDWHULDOV .H\,VVXHV x x x 5HXVHRUGRQDWHHTXLSPHQW ,PSURYHVSDFHDQGEXLOGLQJÀH[LELOLW\ 0D[LPL]HRSSRUWXQLWLHVIRUUHXVH $FWLRQVDQG0HWKRGV x x (QVXUHDOOHTXLSPHQWLVHDVLO\DFFHVVLEOHDQGFDQEHHDVLO\ UHPRYHGLIQHFHVVDU\ $UHWKHUHSURSHUFOHDUDQFHVWRUHPRYHWKHHTXLSPHQWZLWKRXW GDPDJLQJZDOOVRUWKHH[LVWLQJVWUXFWXUH" %XLOGLQJDQG0DWHULDO5HXVH &KDSWHU%XLOGLQJDQG0DWHULDO5HXVH )LQLVKHV *RDO7RHQDEOHWKHUHXVHRIIDFLOLWLHVV\VWHPVHTXLSPHQWSURGXFWV DQGPDWHULDOV .H\,VVXHV x x x 5HGXFHDQGUHXVHPDWHULDOV ,PSURYHVSDFHDQGEXLOGLQJÀH[LELOLW\ 0D[LPL]HRSSRUWXQLWLHVIRUUHXVH $FWLRQVDQG0HWKRGV x x 6XJJHVWXVLQJVWUXFWXUDOHOHPHQWVDV¿QLVKHGPDWHULDOVLH VWDLQHGFRQFUHWHÀRRUDUFKLWHFWXUDOO\H[SRVHGVWUXFWXUDOVWHHO SDLQWHG&08EORFNFRQFUHWHZDOOVDQGSUHFDVWSDQHOV 0LQLPL]HWKHXVHRIGU\ZDOO 5HXVDEOH0DWHULDOV x x x x x x x x :RRG¿QLVKHVÀRRUVIUDPLQJ &DUSHWWLOH &HLOLQJWLOH )L[WXUHVDQGKDUGZDUH 0HWDOV 3OXPELQJ¿[WXUHV 6WDLUWUHDGV +DQGUDLOV 0DWHULDOVWKDWIDFLOLWDWHIXWXUHUHXVH x x 3UHIDEULFDWHGZDOOV\VWHPVVPDUWZDOOV 'HPRXQWDEOHGU\ZDOO 0DWHULDOVWRDYRLG x x )LEURXVLQVXODWLRQ &KHPLFDOWUHDWPHQWVIRUZRRGDQGPDQ\V\QWKHWLFPDWHULDOV VXFKDVVHDODQWVFKHPLFDOFRDWLQJVELQGHUVDQGDGKHVLYHV %XLOGLQJDQG0DWHULDO5HXVH x &RPSRVLWHPDWHULDOVLHORRVHDQGERQGHGLQVXODWLRQIRXQGLQ FXUWDLQZDOOVKDPSHUGHFRQVWUXFWLRQHIIRUWV &DVH6WXG\ ,QWHOOLJHQW:RUNSODFH&DUQHJLH0HOORQ8QLYHUVLW\ 7KH,QWHOOLJHQW:RUNSODFHDW &08ZDVGHVLJQHGWRSURYLGH XQSUHFHGHQWHGOHYHOVRI RUJDQL]DWLRQDOÀH[LELOLW\DQG WHFKQRORJLFDODGDSWDELOLW\6SDWLDO ÀH[LELOLW\ZDVSURYLGHGZLWK x 0RGXODUVWDFNDEOH VWRUDJHZDOOV\VWHPV x )ORRUEDVHGPRGXODUZRUNVXUIDFHV x $FRXVWLFFRQWURORIGLYHUVHRI¿FHFRQ¿JXUDWLRQV 5HIHUHQFHV ³&HQWHUIRU%XLOGLQJ3HUIRUPDQFHDQG'LDJQRVWLFV´6FKRRORI $UFKLWHFWXUH&DUQHJLH0HOORQ8QLYHUVLW\KWWSZHOGDUFFPXHGXFESG LQGH[KWPO )OHWFKHU623RSRYLFHWDO³'HVLJQLQJIRU)XWXUH5HXVHDQG 5HF\OLQJ´6FKRRORI$UFKLWHFWXUH6KHI¿HOG8QLYHUVLW\:HVWHUQ%DQN 6KHI¿HOG *X\%DQG66KHOO'HVLJQIRU'HFRQVWUXFWLRQ&,%7DVN*URXS 'HFRQVWUXFWLRQ.DUOHVUXKH*HUPDQ\ 6LPSVRQ6³&RQVWUXFWLRQ:DVWH0DQDJHPHQW*XLGH0HWKRGV WR6DYH0RQH\DQG5HVRXUFHV´6WDWHRI:DVKLQJWRQ'HSDUWPHQWRI *HQHUDO$GPLQLVWUDWLRQ2O\PSLD:$ %XLOGLQJDQG0DWHULDO5HXVH &KDSWHU&RQVWUXFWLRQ7HFKQRORJLHV *RDO7RUHGXFHWLPHDQGZDVWHRQYDULRXVSURMHFWDGPLQLVWUDWLRQDQG FRQVWUXFWLRQSURFHVVHV .H\,VVXHV x x x 6DYHWLPH 5HGXFHVHIIRUW 'HFUHDVHSDSHUZDVWH $FWLRQVDQG0HWKRGV 'RFXPHQWDWLRQ x (SDSHUFDQEHXVHGWRPDNHPXOWLSOHLPDJHVVXFKDV EOXHSULQWVFRQVWUXFWLRQGRFXPHQWV,WLVEHVWDSSOLFDEOHZKHUH ORWVRIFKDQJHVLQWKHSODQVFRXOGRFFXU &RPPXQLFDWLRQ x $QLQWHUQHWYLGHRFDPHUDYLDZLUHOHVVPRGHPFDQKHOSUHSRUW WKHGDLO\SURJUHVVDWWKHFRQVWUXFWLRQVLWH x 2QOLQHGLJLWDOVWUHDPLQJYLGHRZRXOGGRFXPHQWWKHSURJUHVV RIFRQVWUXFWLRQSURMHFWVDQGWKURXJKWKH,QWHUQHWWKLVLQIRUPDWLRQ FDQEHVKDUHGZLWKRWKHUGHSDUWPHQWV x 3RUWDEOHPRELOH¿HOGGHYLFHVSURYLGHKHOSZLWK¿HOGUHSRUWLQJ FRQWUDFWRURZQHUELOOLQJSD\UROOHQWU\SXQFKOLVWVHWF x 6KRUWUDQJHUDGLRWHFKQRORJ\PDNHVLWSRVVLEOHWRWUDQVPLW VLJQDOVRYHUVKRUWGLVWDQFHVEHWZHHQPRELOH3&¶VPRELOH SKRQHVDQGRWKHUSRUWDEOHGHYLFHVDQGFDQWUDFNORFDWLRQVRI SHRSOHDQGHTXLSPHQW x (OHFWURQLFDOO\GLVWULEXWHVSHFL¿FDWLRQV6FDQLQWKH VSHFL¿FDWLRQVRQDKLJKVSHHGVFDQQHUDQGGLVWULEXWHWKHPRQD &'RUHOHFWURQLFDOO\ x (OHFWURQLFDOO\GLVWULEXWHGRFXPHQWV6XEFRQWUDFWRUVFDQ UHYLHZSODQVRQOLQHDQGSULQWRQO\WKHGUDZLQJVWKH\QHHG 0DWHULDO7UDFNLQJ x 9DULRXVVRIWZDUHSURJUDPVFRXOGEHXVHGIRULQYHQWRU\ DFFRXQWLQJXSGDWLQJWKURXJKSXUFKDVHRUGHUVDFFRXQWVSD\DEOH LQYRLFHVHWF x %DUFRGLQJFRXOGEHXVHGIRUWKHLQYHQWRU\FRQWURO3'$VFDQ EHXVHGIRUWUDFNLQJPDWHULDOVLQWRRURXWRIWKHVLWH &RQVWUXFWLRQ7HFKQRORJLHV &RQVWUXFWLRQ0DQDJHPHQW(I¿FLHQF\ x (OHFWURQLF3XQFKOLVWVDUHDQRQOLQHFRPSXWHUEDVHGSXQFKOLVW V\VWHPZLWKHPEHGGHGGLJLWDOSKRWRJUDSKVRIHDFKLWHP DFFHVVLEOHYLDLQWHUQHW x 3RFNHWYHUVLRQRI&$'FRXOGEHXVHGLQSDOPWRSVZKLFKFDQ UHSODFHEOXHSULQWVGUDZLQJVHWF &DVH6WXG\ &RPPHUFLDO&RQVWUXFWLRQ3URMHFW 3URMHFW'HVFULSWLRQ%HFKWHOXVHGDGYDQFHGFRPPXQLFDWLRQWHFKQRORJLHV IRULWVSURMHFWLQ6XODZHVL,QGRQHVLD7KH\IDFHGVRPHSUREOHPVZLWKWKH GHVLJQEXW¿HOGHQJLQHHUVZHUHDEOHWRFRPPXQLFDWHZLWKWKHGHVLJQHU DQG¿QGWKHVROXWLRQZLWKRXWDQ\GHOD\V )LHOGHQJLQHHUV RQVLWH (SDSHU3'$ 5HIHUHQFHV ³%OXHWRRWK6KRUW5DQJH5DGLR7HFKQRORJ\´&RQVWUXFWLRQ ,QGXVWU\,QVWLWXWH KWWSZZZQHZWHFKQRORJLHVRUJ(&7,QWHUQHWEOXHWRRWKKWP ³)LEHU2SWLF/DVHU7HFKQRORJ\IRU'HFRQWDPLQDWLQJ0HWDOV´ &RQVWUXFWLRQ,QGXVWU\,QVWLWXWH KWWSZZZQHZWHFKQRORJLHVRUJ(&72WKHU¿EHURSWLFODVHU &RQVWUXFWLRQ7HFKQRORJLHV &KDSWHU&RQVWUXFWLRQ7HFKQRORJLHV 3ODQQLQJ *RDO7RUHGXFHWLPHDQGZDVWHRQYDULRXVSURMHFWDGPLQLVWUDWLRQDQG FRQVWUXFWLRQSURFHVVHV .H\,VVXHV x x x 6DYHWLPH 5HGXFHVHIIRUW 'HFUHDVHSDSHUZDVWH $FWLRQVDQG0HWKRGV 'RFXPHQWDWLRQ x (SDSHUFDQEHXVHGWRPDNHPXOWLSOHLPDJHVVXFKDV EOXHSULQWVFRQVWUXFWLRQGRFXPHQWV,WLVPRVWDSSOLFDEOHZKHUH ORWVRIFKDQJHVLQWKHSODQVFRXOGRFFXU x '/DVHU6FDQQLQJ0RGHOLQJ6\VWHPOHWVXVHUV HFRQRPLFDOO\REWDLQDFFXUDWHFRPSOHWHDQGWLPHO\DVEXLOW JHRPHWU\LQIRUPDWLRQIRUODUJHVWUXFWXUHVDQGVLWHV x 'RFXPHQW0DQDJHPHQW6\VWHPVDFHQWUDOL]HGHOHFWULF UHSRVLWRU\IRUDOOSURMHFWUHODWHGLQIRUPDWLRQSDUWLDOO\HOLPLQDWH WKHQHHGIRUGXSOLFDWHFRSLHVIRUWKHRI¿FHDQGWKH¿HOGDQG UHGXFHVSDSHU¿OLQJUHTXLUHPHQWV &RPPXQLFDWLRQ x x x x x :HEFRQIHUHQFLQJWHFKQRORJ\DOORZVXVHUVWRDYRLGH[SHQVLYH ORQJGLVWDQFHUDWHVE\KDYLQJSDUWLFLSDQWVOLVWHQLQRYHUWKH:HE XVLQJRQO\WKHLUVWDQGDUG,QWHUQHWFRQQHFWLRQDQGEURZVHU8VHUV FDQWDONRQWKHSKRQHZDWFK\RXUOLYHSUHVHQWDWLRQDQGVXEPLW WKHLUTXHVWLRQVYLDWH[WFKDW 'LJLWDODQGLQWHUDFWLYHZKLWHERDUGVKDYHWKHFDSDELOLWLHVWR FDSWXUHKDQGZULWWHQFRORUGUDZLQJVDQGWH[WDVUHDOWLPHGDWDIRU XVHRQ3&VDQ\WLPHDQ\ZKHUH *OREDO0RELOH&RPPXQLFDWLRQ6\VWHPVFDQLPSURYH LQIRUPDWLRQÀRZIURPWKHMREVLWHWRWKHKRPHRI¿FH ,QWHUQHW9LGHR&DPHUDYLD:LUHOHVVPRGHPFDQKHOSUHSRUW WKHGDLO\SURJUHVVDWWKHFRQVWUXFWLRQVLWH 2QOLQH'LJLWDO6WUHDPLQJ9LGHRZRXOGGRFXPHQWWKHSURJUHVV &RQVWUXFWLRQ7HFKQRORJLHV RIFRQVWUXFWLRQSURMHFWVDQGWKURXJKWKH,QWHUQHWDQGWKLV LQIRUPDWLRQFDQEHVKDUHGZLWKRWKHUGHSDUWPHQWV x 3RUWDEOHPRELOH¿HOGGHYLFHVSURYLGHKHOSZLWK¿HOGUHSRUWLQJ FRQWUDFWRURZQHUELOOLQJSD\UROOHQWU\SXQFKOLVWHWF x 6KRUWUDQJHUDGLRWHFKQRORJ\PDNHVLWSRVVLEOHWRWUDQVPLW VLJQDOVRYHUVKRUWGLVWDQFHVEHWZHHQPRELOH3&¶VPRELOH SKRQHVDQGRWKHUSRUWDEOHGHYLFHVDQGFDQWUDFNORFDWLRQVRI SHRSOHDQGHTXLSPHQW x (OHFWURQLFDOO\GLVWULEXWHVSHFL¿FDWLRQV6FDQLQWKH VSHFL¿FDWLRQVRQDKLJKVSHHGVFDQQHUDQGGLVWULEXWHWKHPRQD &'RUHOHFWURQLFDOO\ x (OHFWURQLFDOO\GLVWULEXWHGRFXPHQWV6XEFRQWUDFWRUVFDQ UHYLHZSODQVRQOLQHDQGSULQWRQO\WKHGUDZLQJVWKH\QHHG x 'LJLWDOVLJQDWXUHVFDQLQFUHDVHWKHHI¿FLHQF\RIDQXPEHURI DXWKRUL]DWLRQVWHSVLQWKHFRQVWUXFWLRQSURFHVV 0DWHULDO7UDFNLQJ x 9DULRXVVRIWZDUHSURJUDPVFRXOGEHXVHGIRULQYHQWRU\ DFFRXQWLQJXSGDWLQJWKURXJKSXUFKDVHRUGHUVDFFRXQWVSD\DEOH LQYRLFHVHWF x %DU&RGLQJ7KLVFRXOGEHXVHGIRUWKHLQYHQWRU\FRQWURO3'$V FDQEHXVHGIRUWUDFNLQJPDWHULDOVLQWRRURXWRIWKHVLWH x 5HDOWLPH&RQVWUXFWLRQFRPSRQHQW7UDFNLQJ6\VWHPKDV WKHSRWHQWLDOWRHQDEOHWKHFRQVWUXFWLRQLQGXVWU\WRVHDPOHVVO\ LQWHJUDWHZRUNSURFHVVHVDWWKHMREVLWHV &RQVWUXFWLRQ0DQDJHPHQW x $Q(OHFWURQLF3XQFKOLVWLVDQRQOLQHFRPSXWHUEDVHGSXQFKOLVW V\VWHPZLWKHPEHGGHGGLJLWDOSKRWRJUDSKVRIHDFKLWHPWKDWDUH DFFHVVLEOHWKURXJKWKH,QWHUQHW x 3RFNHWYHUVLRQRI&$'FRXOGEHXVHGLQ3'$VZKLFKFDQ UHSODFHEOXHSULQWVGUDZLQJVHWF x 5HDO7LPH3RVLWLRQLQJUHGXFHVWLPHODERUH[SHQVHVDQG HUURUVZKLOHVXUYH\DQGLQVSHFWLRQGDWDLVJDWKHUHGWUDQVFULEHG DQGSURFHVVHG x 8VHSHUVRQDODLUPRQLWRULQJV\VWHPVWRLQIRUPZRUNHUV RIKD]DUGRXVHQYLURQPHQWV7KLVWHFKQRORJ\FDQLPSURYH RFFXSDWLRQDOVDIHW\DQGKHDOWKLQFRQVWUXFWLRQZRUNSODFH x ,PSOHPHQWZHEEDVHGFRQVWUXFWLRQPDQDJHPHQW 3URGXFWLYLW\LVHQKDQFHGE\WKHHOHFWURQLFVXEPLVVLRQRI GRFXPHQWVWKURXJKDZHEEDVHGV\VWHPE\VLPSOLI\LQJWKH VXEPLWWDOSURFHVVHOLPLQDWLQJUHSURGXFWLRQDQGPDLOLQJVKLSSLQJ FRVWVDQGUHGXFLQJODERUFRVWVDVVRFLDWHGZLWKGLVWULEXWLRQDQG &RQVWUXFWLRQ7HFKQRORJLHV x x x x ¿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¿FH8VLQJWKLV WHFKQRORJ\HQVXUHVHVWLPDWRUVKDYHWKHLQIRUPDWLRQQHHGHG WRFROOHFWSURMHFWGHWDLOVQHFHVVDU\WRGHOLYHUFRPSOHWHDQG DFFXUDWHHVWLPDWHV &DVH6WXG\ $VVHW0DQDJHPHQW ,QVXEXUEDQ&KLFDJR-RUJH5RMDVSXUFKDVLQJPDQDJHUIRU)(0RUDQ ,QFDPHFKDQLFDOFRQWUDFWRUEDVHGLQ1RUWKEURRN,OOUHPHPEHUV WUDFNLQJDVVHWVIURPDZHDWKHUHGFOLSERDUGKDQJLQJRQKLVFRPSDQ\¶V ZDUHKRXVHZDOO+HVD\VKLVFRPSDQ\RZQVDERXWPLOOLRQLQVPDOO WRROVDQGSRUWDEOHHTXLSPHQWXVHGWRLQVWDOO¿UHSURWHFWLRQVHFXULW\DQG +9$&V\VWHPV³,WZDVDQLJKWPDUH´KHVD\V$IWHUHYHU\MREZUDSSHG XSWKHFRPSDQ\ZDVORVLQJDWOHDVWLQVPDOODVVHWVRUDERXW DQQXDOO\ 1RZ5RMDVPDQDJHVWRROVZLWKKLVFRPSXWHU,QKHEHJDQEDU FRGLQJDQGGDWDEDVLQJHYHU\WRROZRUWKRUPRUH³:KHQZHSXW WRROVWRJHWKHUIRUDMREZHJDWKHUWKHPXSDQGVFDQWKHPZLWKDSRUWDEOH VFDQQHU´VD\V5RMDV³$IWHUZHVHQGWKHPRXW,GRZQORDGWKHVFDQQHU LQWRP\FRPSXWHUV\VWHP:KHQ,QHHGWRJHWDWRRO,¿QGLWLQWKH V\VWHPVR,GRQ¶WQHHGWREX\DQRWKHURQH´ ±(15(&RQVWUXFWLRQ /HIW+DQGKHOGGHYLFHVVFDQDQGXSORDGWRROGDWD 5LJKW%DUFRGHODEHOVDUHDSRSXODUPHWKRGIRUWUDFNLQJVPDOODVVHWVZLWKLQ¿UPV &RQVWUXFWLRQ7HFKQRORJLHV 5HIHUHQFHV ³03HUVRQDO$LU0RQLWRULQJ6\VWHPV´&RQVWUXFWLRQ,QGXVWU\ ,QVWLWXWH KWWSZZZQHZWHFKQRORJLHVRUJ(&76DIHW\PDLUPRQLWRUV\VKWP ³%OXHWRRWK6KRUW5DQJH5DGLR7HFKQRORJ\´&RQVWUXFWLRQ ,QGXVWU\,QVWLWXWH KWWSZZZQHZWHFKQRORJLHVRUJ(&7,QWHUQHWEOXHWRRWKKWP ³%XLOGHU6XSSO\1HW2QOLQH7UDGLQJ&RPPXQLW\´&RQVWUXFWLRQ ,QGXVWU\,QVWLWXWH KWWSZZZQHZWHFKQRORJLHVRUJ(&7,QWHUQHWEVQKWP ³(YRNH&RPPXQLFDWLRQV´&RQVWUXFWLRQ,QGXVWU\,QVWLWXWHKWWS ZZZQHZWHFKQRORJLHVRUJ(&7,QWHUQHWHYRNHKWP ³)LEHU2SWLF/DVHU7HFKQRORJ\IRU'HFRQWDPLQDWLQJ0HWDOV´ &RQVWUXFWLRQ,QGXVWU\,QVWLWXWH KWWSZZZQHZWHFKQRORJLHVRUJ(&72WKHU¿EHURSWLFODVHU +DPSWRQ7³)LUPV$UH8VLQJ7RRO7UDFNLQJIRU6PDUWHU$VVHW 0DQDJHPHQW´(QJLQHHULQJ1HZV5HFRUGKWWSZZZHQUFRPIHDWXUHV WHFKQRORJ\HFRQVWDUFKLYHVDVS ³,QWHUQHWEDVHG7HFKQRORJLHV´&RQVWUXFWLRQ,QGXVWU\,QVWLWXWH KWWSZZZQHZWHFKQRORJLHVRUJ(&7,QWHUQHWLQWHUQHWKWP ³PLPLR'LJLWDO7HFKQRORJ\IRU:KLWH%RDUGV´&RQVWUXFWLRQ ,QGXVWU\,QVWLWXWH KWWSZZZQHZWHFKQRORJLHVRUJ(&7,QWHUQHWPLPLRKWP ³1HZ$GGLWLRQV´&RQVWUXFWLRQ,QGXVWU\,QVWLWXWH KWWSZZZQHZWHFKQRORJLHVRUJ(&71HZQHZ ³3DOP(VWLPDWLQJ´&RQVWUXFWLRQ,QGXVWU\,QVWLWXWHKWWSZZZ QHZWHFKQRORJLHVRUJ(&72WKHUSDOPHVWKWP 3KDLU0³1HZ/DZV7HFKQRORJLHV3XVK6LJQLQJRQ7KH'RWWHG 6FUHHQ2IIHU,PSRUWDQW6DIHJXDUGV´(QJLQHHULQJ1HZV5HFRUGKWWS ZZZHQUFRPIHDWXUHVWHFKQRORJ\HFRQVWDUFKLYHVEDVS ³3ULPH&RQWUDFWFRP´&RQVWUXFWLRQ,QGXVWU\,QVWLWXWHKWWSZZZ QHZWHFKQRORJLHVRUJ(&7,QWHUQHWSULPHFRQWUDFWKWP ³3URFXUH=RQHFRP´&RQVWUXFWLRQ,QGXVWU\,QVWLWXWHKWWSZZZ QHZWHFKQRORJLHVRUJ(&7,QWHUQHWSURFXUH]RQHKWP 5RH$³1HZ3OD\HUV3XVK3URMHFW0DQDJHPHQWWRWKH :HE´(QJLQHHULQJ1HZV5HFRUGKWWSZZZHQUFRPIHDWXUHV WHFKQRORJ\HFRQVWDUFKLYHVEDVS ³6DIHW\7HFKQRORJLHV´&RQVWUXFWLRQ,QGXVWU\,QVWLWXWHKWWS ZZZQHZWHFKQRORJLHVRUJ(&76DIHW\VDIHW\KWP &RQVWUXFWLRQ7HFKQRORJLHV &KDSWHU&RQVWUXFWLRQ7HFKQRORJLHV *HQHUDO&RQGLWLRQV *RDO7RUHGXFHWLPHDQGZDVWHRQSURMHFWDGPLQLVWUDWLRQDQG FRQVWUXFWLRQSURFHVVHV .H\,VVXHV x x x 6DYHWLPH 5HGXFHVHIIRUW 'HFUHDVHSDSHUZDVWH $FWLRQVDQG0HWKRGV 'RFXPHQWDWLRQ x (SDSHUFDQEHXVHGWRPDNHPXOWLSOHLPDJHVVXFKDV EOXHSULQWVFRQVWUXFWLRQGRFXPHQWV,WLVPRVWDSSOLFDEOHZKHUH ORWVRIFKDQJHVLQWKHSODQVFRXOGRFFXU x 'RFXPHQW0DQDJHPHQW6\VWHPVDFHQWUDOL]HGHOHFWULF UHSRVLWRU\IRUDOOSURMHFWUHODWHGLQIRUPDWLRQSDUWLDOO\HOLPLQDWHV WKHQHHGIRUGXSOLFDWHFRSLHVIRUWKHRI¿FHDQGWKH¿HOGDQG UHGXFHVSDSHU¿OLQJUHTXLUHPHQWV &RPPXQLFDWLRQ x x x x x :HEFRQIHUHQFLQJWHFKQRORJ\DOORZVXVHUVWRDYRLGH[SHQVLYH ORQJGLVWDQFHUDWHVE\KDYLQJSDUWLFLSDQWVOLVWHQLQRYHUWKH:HE XVLQJRQO\WKHLUVWDQGDUG,QWHUQHWFRQQHFWLRQDQGEURZVHU8VHUV FDQWDONRQWKHSKRQHZDWFK\RXUOLYHSUHVHQWDWLRQDQGVXEPLW WKHLUTXHVWLRQVYLDWH[WFKDW 'LJLWDODQGLQWHUDFWLYHZKLWHERDUGVKDYHWKHFDSDELOLWLHVWR FDSWXUHKDQGZULWWHQFRORUGUDZLQJVDQGWH[WDVUHDOWLPHGDWDIRU XVHRQ3&VDQ\WLPHDQ\ZKHUH *OREDO0RELOH&RPPXQLFDWLRQ6\VWHPVFDQLPSURYH LQIRUPDWLRQÀRZIURPWKHMREVLWHWRWKHKRPHRI¿FH 3RUWDEOHPRELOH¿HOGGHYLFHVSURYLGHKHOSZLWK¿HOGUHSRUWLQJ FRQWUDFWRURZQHUELOOLQJSD\UROOHQWU\SXQFKOLVWHWF 6KRUWUDQJHUDGLRWHFKQRORJ\PDNHVLWSRVVLEOHWRWUDQVPLW VLJQDOVRYHUVKRUWGLVWDQFHVEHWZHHQPRELOH3&¶VPRELOH SKRQHVDQGRWKHUSRUWDEOHGHYLFHVDQGFDQWUDFNORFDWLRQVRI SHRSOHDQGHTXLSPHQW &RQVWUXFWLRQ7HFKQRORJLHV x x x (OHFWURQLFDOO\GLVWULEXWHVSHFL¿FDWLRQV6FDQLQWKH VSHFL¿FDWLRQVRQDKLJKVSHHGVFDQQHUDQGGLVWULEXWHWKHPRQD &'RUHOHFWURQLFDOO\ (OHFWURQLFDOO\GLVWULEXWHGRFXPHQWV6XEFRQWUDFWRUVFDQ UHYLHZSODQVRQOLQHDQGSULQWRQO\WKHGUDZLQJVWKH\QHHG 'LJLWDOVLJQDWXUHVFDQLQFUHDVHWKHHI¿FLHQF\RIDQXPEHURI DXWKRUL]DWLRQVWHSVLQWKHFRQVWUXFWLRQSURFHVV 5HIHUHQFHV ³%OXHWRRWK6KRUW5DQJH5DGLR7HFKQRORJ\´&RQVWUXFWLRQ ,QGXVWU\,QVWLWXWHKWWSZZZQHZWHFKQRORJLHVRUJ(&7,QWHUQHW EOXHWRRWKKWP ³,QWHUQHWEDVHG7HFKQRORJLHV´&RQVWUXFWLRQ,QGXVWU\,QVWLWXWH KWWSZZZQHZWHFKQRORJLHVRUJ(&7,QWHUQHWLQWHUQHWKWP ³PLPLR'LJLWDO7HFKQRORJ\IRU:KLWH%RDUGV´&RQVWUXFWLRQ ,QGXVWU\,QVWLWXWHKWWSZZZQHZWHFKQRORJLHVRUJ(&7,QWHUQHWPLPLR KWP ³3DOP(VWLPDWLQJ´&RQVWUXFWLRQ,QGXVWU\,QVWLWXWHKWWSZZZ QHZWHFKQRORJLHVRUJ(&72WKHUSDOPHVWKWP &RQVWUXFWLRQ7HFKQRORJLHV &KDSWHU&RQVWUXFWLRQ7HFKQRORJLHV 'HPROLWLRQDQG$EDWHPHQW *RDO5HGXFHWLPHHIIRUWDQGZDVWHXVLQJVXVWDLQDEOHWHFKQRORJLHV GXULQJWKHGHPROLWLRQDQGDEDWHPHQWSURFHVV .H\,VVXHV x x x 8VLQJVXVWDLQDEOHWHFKQRORJ\FDQUHGXFHSDSHUZDVWHIRU GHPROLWLRQDQGDEDWHPHQWDFWLYLWLHV 6XVWDLQDEOHWHFKQRORJ\JHQHUDWHVHI¿FLHQWSURMHFW FRPPXQLFDWLRQ 7LPHDQGHIIRUWFDQEHVDYHGXVLQJVXVWDLQDEOHWHFKQRORJLHV GXULQJGHPROLWLRQDQGDEDWHPHQW $FWLRQVDQG0HWKRGV 'RFXPHQWDWLRQDQGFRQVWUXFWLRQSKRWRV x 8VHGLJLWDOGRFXPHQWDWLRQRIFXUUHQWFRQGLWLRQVIRUUHIHUHQFH EHIRUHWKHGHPROLWLRQDQGDEDWHPHQWSURFHVVEHJLQV x 'LJLWDO3KRWRVSURYLGHDXVHIXOWRROWRFRPPXQLFDWHVLWH DQDO\VWLQIRUPDWLRQEHWZHHQGLIIHUHQWSURMHFWSOD\HUVGXULQJWKH GHPROLWLRQDQGDEDWHPHQWSURFHVV 'HYHORSDUHOLDEOHVWRUDJHV\VWHP,PDJHVFDQEHVWRUHG RQ&'RU'9'IRUPDWV7KLVZLOOHOLPLQDWHWKHQHHGIRU FXPEHUVRPHSKRWRDOEXPVDQGDOORZHDV\DFFHVVIRUIXWXUH UHIHUHQFH x (OHFWURQLFDOO\GLVWULEXWHVSHFL¿FDWLRQV6FDQLQWKH VSHFL¿FDWLRQVRQDKLJKVSHHGVFDQQHUDQGGLVWULEXWHWKHPRQD &'RUHOHFWURQLFDOO\ x (OHFWURQLFDOO\GLVWULEXWHGRFXPHQWV6XEFRQWUDFWRUVFDQ UHYLHZWKHSODQVRQOLQHDQGSULQWRQO\WKHGUDZLQJVWKH\QHHG &RPPXQLFDWLRQ x $:HEFRQQHFWHGYLGHRFDPHUDFDQSKRWRJUDSKLFDOO\ GRFXPHQWMREVLWHSURJUHVVRQOLQH7KLVFDQUHGXFHWUDYHOWLPH DQGH[SHQVHVWRWKHVLWH x x 8WLOL]HWKHFDSDELOLWLHVRI3'$VSRUWDEOHODSWRSFRPSXWHUVDQG RWKHUHOHFWURQLFFRPPXQLFDWLRQGHYLFHVWRFXWGRZQRQWKH DPRXQWRISDSHUZDVWHJHQHUDWHG &RQVWUXFWLRQ7HFKQRORJLHV &RPSOH['HPROLWLRQ3URMHFWV x '&$'PRGHOLQJFDQEHXWLOL]HGWREHWWHUXQGHUVWDQGWKH GHPROLWLRQDQGDEDWHPHQWSURFHVVRQFRPSOH[MREV (PHUJLQJ'HPROLWLRQ7HFKQRORJ\ x 8VLQJ6RXQGOHVV'HPROLWLRQ&KHPLFDO$JHQWV6&'$KDV SURYHQWREHDYLDEOHVXEVWLWXWHIRUWKHXVHRIH[SORVLYHV (PHUJLQJ7HFKQRORJ\ 6RXQGOHVV'HPROLWLRQ&KHPLFDO$JHQWV6&'$ ([DPSOHVRIGHPROLWLRQZRUNXVLQJ6&'$6&'$VDUHSRZGHU\ PDWHULDOVWKDWZLOOH[SDQGFRQVLGHUDEO\ZKHQPL[HGZLWKZDWHU7KLV H[SDQVLRQZKHQRFFXUULQJXQGHUFRQ¿QHPHQWJHQHUDWHVVLJQL¿FDQW H[SDQVLYHSUHVVXUHV7KHVHSUHVVXUHVDUHVXI¿FLHQWWREUHDNXSURFN DQGFRQFUHWHZKHQWKH6&'$LVFRQ¿QHGLQDERUHKROHRUDVHULHVRI ERUHKROHV 5HIHUHQFHV 1RYLWVNL%-³$(&6<67(067HDPVZLWK3URMHFW([WUDQHWV´ $UFKLWHFWXUH:HHNKWWSZZZDUFKLWHFWXUHZHHNFRPQHZVB KWPO ³6RXQGOHVV&KHPLFDO'HPROLWLRQ$JHQWV´&RQVWUXFWLRQ,QGXVWU\ ,QVWLWXWHKWWSZZZQHZWHFKQRORJLHVRUJ(&7&LYLOVRXQGFKHKWP ³:KLWH3DSHU,PSOHPHQWLQJGLJLWDOLPDJHSKRWRJUDSK\LQWKHEXLOGLQJ LQGXVWU\´&RPSXWHU:HHNO\KWWSZZZFRPSXWHUZHHNO\FRP $UWLFOHKWP &RQVWUXFWLRQ7HFKQRORJLHV &KDSWHU&RQVWUXFWLRQ7HFKQRORJLHV 6LWH:RUN *RDO5HGXFHWLPHHIIRUWDQGZDVWHXVLQJVXVWDLQDEOHWHFKQRORJLHV GXULQJVLWHZRUN .H\,VVXHV x x x 8VLQJVXVWDLQDEOHWHFKQRORJ\FDQUHGXFHSDSHUZDVWHIRURQVLWH ZRUNDFWLYLWLHV 6XVWDLQDEOHWHFKQRORJ\JHQHUDWHVHI¿FLHQWSURMHFW FRPPXQLFDWLRQ 7LPHDQGHIIRUWFDQEHVDYHGXVLQJVXVWDLQDEOHWHFKQRORJLHV GXULQJRQVLWHZRUN $FWLRQVDQG0HWKRGV 'RFXPHQWDWLRQ x 8VHGLJLWDOGRFXPHQWDWLRQRIFXUUHQWFRQGLWLRQVIRUUHIHUHQFH EHIRUHVLWHZRUNEHJLQV7KLVZLOOSURGXFHDGDWDEDVHWKDWFDQEH UHIHUHQFHGLIQHFHVVDU\GXULQJSURMHFWVLWHZRUN x (OHFWURQLFDOO\GLVWULEXWHVSHFL¿FDWLRQV6FDQLQWKH VSHFL¿FDWLRQVRQDKLJKVSHHGVFDQQHUDQGGLVWULEXWHWKHPRQD &'RUHOHFWURQLFDOO\ (OHFWURQLFDOO\GLVWULEXWHGRFXPHQWV6XEFRQWUDFWRUVFDQ UHYLHZWKHSODQVRQOLQHDQGSULQWRQO\WKHGUDZLQJVWKH\QHHG &RPPXQLFDWLRQ x $:HEFRQQHFWHGYLGHRFDPHUDFDQSKRWRJUDSKLFDOO\ GRFXPHQWMREVLWHSURJUHVVRQOLQH7KLVFDQUHGXFHWUDYHOWLPH DQGH[SHQVHVJRWRWKHVLWH x 8WLOL]HWKHFDSDELOLWLHVRI3'$VSRUWDEOHODSWRSFRPSXWHUVDQG RWKHUHOHFWURQLFFRPPXQLFDWLRQGHYLFHVWRFXWGRZQRQWKH DPRXQWRISDSHUZDVWHJHQHUDWHG (VWLPDWLQJ x x 8VHRQVFUHHQWDNHRIIWRROVGXULQJVLWHZRUNSODQQLQJDQG HVWLPDWLQJ7KLVOHDGVWRIHZHUSULQWHGGUDZLQJVHWV &RQVWUXFWLRQ7HFKQRORJLHV (PHUJLQJ7HFKQRORJ\ *36%DVHG(DUWKPRYLQJV\VWHP 6RPHRIWKHEHQH¿WVDUH x $UHGXFWLRQRIDGGLWLRQDOVXUYH\VWKDWPD\EHUHTXLUHGWRFRQYH\ LQIRUPDWLRQRQWKHQH[WVLWHZRUNSKDVHWRPDNHFKDQJHVWR WKHFXUUHQWZRUNDQGWRGRFXPHQWFRPSOHWHGZRUNDJDLQVW SODQ8VLQJWKHFRQYHQWLRQDOSURFHVVRIFURVVUHIHUHQFLQJWKH VLWHZRUNFDQEHWLPHFRQVXPLQJDQGLWFRQWDLQVQXPHURXV RSSRUWXQLWLHVIRUHUURU x )DVWDQGDFFXUDWHGHFLVLRQDQGFRQWUROGXHWRUHDOWLPH LQIRUPDWLRQRISRVLWLRQDQGJUDGHGLVSOD\HGLQWKHFDE 5HGXFWLRQRIVXUYH\LQJDQGJUDGHFKHFNLQJFRVWVDQGLQFUHDVHG PDFKLQHDQGRSHUDWRUSURGXFWLYLW\ x $IDVWHUMREF\FOH x 5HGXFWLRQRIWKHUHZRUNFDXVHGE\WKHODFNRIFRUUHFW LQIRUPDWLRQLQWKH¿HOG x /RZHURSHUDWLQJFRVWV 8VLQJ*36GXULQJ6LWH:RUN x /HIW$YLHZRXWIURPDGR]HUXVLQJD*36V\VWHPIRUVLWHZRUN 5LJKW$VFKHPDWLFGLDJUDPVKRZLQJKRZWKH*36ZRUNVRQVLWH 5HIHUHQFHV ³'*36%DVHG(DUWKPRYLQJ´&RQVWUXFWLRQ,QGXVWU\,QVWLWXWH KWWSZZZQHZWHFKQRORJLHVRUJ(&72WKHUJSV ³%ODGH3UR'$XWRPDWLF*UDGH&RQWURO6\VWHP´&RQVWUXFWLRQ ,QGXVWU\,QVWLWXWHKWWSZZZQHZWHFKQRORJLHVRUJ(&7&LYLOEODGHSUR ³8QSDYHG5RDG6WDELOL]HU´&RQVWUXFWLRQ,QGXVWU\,QVWLWXWHKWWS ZZZQHZWHFKQRORJLHVRUJ(&7&LYLOURDGELQG &RQVWUXFWLRQ7HFKQRORJLHV &KDSWHU&RQVWUXFWLRQ7HFKQRORJLHV )RXQGDWLRQV *RDO5HGXFHWLPHHIIRUWDQGZDVWHXVLQJVXVWDLQDEOHWHFKQRORJLHV GXULQJIRXQGDWLRQZRUN .H\,VVXHV x x x 8VLQJVXVWDLQDEOHWHFKQRORJ\FDQUHGXFHSDSHUZDVWHIRU IRXQGDWLRQDFWLYLWLHV 6XVWDLQDEOHWHFKQRORJ\JHQHUDWHVHI¿FLHQWSURMHFW FRPPXQLFDWLRQ 7LPHDQGHIIRUWFDQEHVDYHGXVLQJVXVWDLQDEOHWHFKQRORJLHV GXULQJIRXQGDWLRQZRUN $FWLRQVDQG0HWKRGV 6DIHH[FDYDWLRQWHFKQRORJ\GHYLFHVSURYLGHUHDOWLPHZDUQLQJ RIWKHXWLOLW\OLQHVLPPHGLDWHO\DKHDGRIWKHGLJJLQJWRRO7KHGDWD FDQEHHDVLO\LQWHUSUHWHGYLDDUHDOWLPHFRPSXWHUUHDGRXWRIWKH GHSWKORFDWLRQDQGVL]HRIEXULHGPHWDOREMHFWV 'RFXPHQWDWLRQ x 8WLOL]HWKHFDSDELOLWLHVRI3'$VSRUWDEOHODSWRSFRPSXWHUVDQG RWKHUHOHFWURQLFFRPPXQLFDWLRQGHYLFHVWRFXWGRZQRQWKH DPRXQWRISDSHUZDVWHJHQHUDWHG x (OHFWURQLFDOO\GLVWULEXWHGRFXPHQWV6XEFRQWUDFWRUVFDQ UHYLHZSODQVRQOLQHDQGSULQWRQO\WKHGUDZLQJVWKH\QHHG x (OHFWURQLFDOO\GLVWULEXWHVSHFL¿FDWLRQV6FDQLQWKH VSHFL¿FDWLRQVRQDKLJKVSHHGVFDQQHUDQGGLVWULEXWHWKHPRQD &'RUHOHFWURQLFDOO\ &RPPXQLFDWLRQ x $:HEFRQQHFWHGYLGHRFDPHUDFDQSKRWRJUDSKLFDOO\ GRFXPHQWMREVLWHSURJUHVVRQOLQH7KLVFDQUHGXFHWUDYHOWLPH DQGH[SHQVHVWRWKHVLWH 7RRODQG0DWHULDO7UDFNLQJ x x %DUFRGHWUDFNLQJGHYLFHVFDQEHKHOSIXOLQWUDFNLQJDQG XSGDWLQJLQYHQWRULHVRIIRXQGDWLRQPDWHULDODQGVXSSOLHV7KH\ DOVRSURYLGHUHDOWLPHTXDQWLW\XSGDWHVDQGUHGXFHSDSHU GRFXPHQWDWLRQRILQYHQWRULHV &RQVWUXFWLRQ7HFKQRORJLHV %DUFRGLQJDQGGDWDEDVLQJIRXQGDWLRQWRROVFDQKHOSWRRO UHFRYHU\IURPMREWRMRE (VWLPDWLQJ x 8VHRQVFUHHQWDNHRIIWRROVGXULQJIRXQGDWLRQSODQQLQJDQG HVWLPDWLQJ7KLVOHDGVWRIHZHUSULQWHGGUDZLQJVHWV &RQVWUXFWLRQ3ODQQLQJDQG&RRUGLQDWLRQ x $'&$'PRGHORIWKHIRXQGDWLRQLVDFRVWHIIHFWLYHDQG HI¿FLHQWDOWHUQDWLYHWRDEXLOWPRFNXS (PHUJLQJ7HFKQRORJLHV x 8VHD&RQFUHWH(QFRXQWHUIRUPHDVXULQJFRQFUHWHPRLVWXUH FRQWHQWLQVWDQWO\ZLWKRXWWKHQHHGWRGULOORUGDPDJHWKHVXUIDFH 6HH&DVH6WXG\ x (PSOR\ODVHUWHFKQRORJ\DQGHTXLSPHQWGXULQJIRXQGDWLRQ ZRUN x 8VLQJDVRLOVWLIIQHVVJDXJHIRUVRLOFRPSDFWLRQFRQWUROFDQ SURGXFHEHWWHUVRLOFRPSDFWLRQGDWDDQGLQIRUPDWLRQ7KLVWRRO SURYLGHVDUHOLDEOHPHDQVWRUDSLGO\PHDVXUHWKHLQVLWHVRLO VWLIIQHVVDQGHODVWLFPRGXOXVRIVRLOV x (OHFWURFKHPLFDOFKORULGHH[WUDFWLRQFDQUHPRYHWKHFKORULGH LRQVDQGUHHVWDEOLVKWKHSDVVLYHR[LGHOD\HUDURXQGWKH UHLQIRUFLQJVWHHOLQFRQFUHWH7KLVHOLPLQDWHVFRQWLQXRXVUHEDU FRUURVLRQ x (PHUJLQJ7HFKQRORJ\ $&RQFUHWH(QFRXQWHU 7KH¿JXUHRQWKHOHIWLVDFRQFUHWHHQFRXQWHU7KHEHQH¿WVRIXVLQJWKLV WRRODUHDVIROORZV x ,QVWDQWUHDGLQJV x 1RQGHVWUXFWLYHLQRSHUDWLRQ x 1RQHHGWRSUREHGULOORUPHFKDQLFDOO\GDPDJH WKHVXUIDFH x 5HSURGXFLEOHUHVXOWV x %DWWHU\RSHUDWHGDQGSRFNHWVL]HG x &OHDUHDV\WRUHDGDQDORJGLDO x 6WURQJUREXVWH[WUXGHGDOXPLQXPERG\ &RQVWUXFWLRQ7HFKQRORJLHV 5HIHUHQFHV ³(OHFWURFKHPLFDO&KORULGH([WUDFWLRQ´&RQVWUXFWLRQ,QGXVWU\ ,QVWLWXWHKWWSZZZQHZWHFKQRORJLHVRUJ(&7&LYLOHOHFFKORKWP +DPSWRQ7³)LUPV$UH8VLQJ7RRO7UDFNLQJIRU6PDUWHU$VVHW 0DQDJHPHQW´(QJLQHHULQJ1HZV5HFRUGKWWSZZZHQUFRPIHDWXUHV WHFKQRORJ\HFRQVWDUFKLYHVDVS ³+XPLGLW\DQG0RLVWXUHLQ0DWHULDOV´*(1(4LQFKWWSZZZJHQHTFRP SGIBPDWHULDX[KXPBPRLVWSGI ³6DIH([FDYDWLRQ´&RQVWUXFWLRQ,QGXVWU\,QVWLWXWHKWWSZZZ QHZWHFKQRORJLHVRUJ(&7&LYLOVDIHH[FDKWP 6PLWK7³&DQ<RX+HDU0H1RZ":HE&HQWULF3URMHFW&RPPXQLFDWLRQ 7RROV´)UHHVHDQG1LFKROV,QFKWWSZZZIUHHVHFRP1HZV3DSHUV LQGH[FIP ³6RLO6WLIIQHVV*DXJHIRU6RLO&RPSDFWLRQ&RQWURO´&RQVWUXFWLRQ ,QGXVWU\,QVWLWXWH KWWSZZZQHZWHFKQRORJLHVRUJ(&7&LYLOKXPEROGWKWP &RQVWUXFWLRQ7HFKQRORJLHV &KDSWHU&RQVWUXFWLRQ7HFKQRORJLHV 6XEVWUXFWXUH *RDO5HGXFHWLPHHIIRUWDQGZDVWHXVLQJVXVWDLQDEOHWHFKQRORJLHV GXULQJVXEVWUXFWXUHZRUN .H\,VVXHV x x x 8VLQJVXVWDLQDEOHWHFKQRORJ\FDQUHGXFHSDSHUZDVWHGXULQJ VXEVWUXFWXUHZRUN 6XVWDLQDEOHWHFKQRORJ\JHQHUDWHVHI¿FLHQWSURMHFW FRPPXQLFDWLRQ 7LPHDQGHIIRUWFDQEHVDYHGXVLQJVXVWDLQDEOHWHFKQRORJLHV GXULQJVXEVWUXFWXUHZRUN $FWLRQVDQG0HWKRGV 'RFXPHQWDWLRQ x (OHFWURQLFDOO\GLVWULEXWHGRFXPHQWV6XEFRQWUDFWRUVFDQ UHYLHZWKHSODQVRQOLQHDQGSULQWRQO\WKHGUDZLQJVWKH\QHHG x (OHFWURQLFDOO\GLVWULEXWHVSHFL¿FDWLRQV6FDQLQWKH VSHFL¿FDWLRQVRQDKLJKVSHHGVFDQQHUDQGGLVWULEXWHWKHPRQD &'RUHOHFWURQLFDOO\ &RPPXQLFDWLRQ $:HEFRQQHFWHGYLGHRFDPHUDFDQSKRWRJUDSKLFDOO\ GRFXPHQWMREVLWHSURJUHVVRQOLQH7KLVFDQUHGXFHWUDYHOWLPH DQGH[SHQVHVWRJRWRWKHVLWH x 8WLOL]HWKHFDSDELOLWLHVRI3'$VSRUWDEOHODSWRSFRPSXWHUVDQG RWKHUHOHFWURQLFFRPPXQLFDWLRQGHYLFHVWRFXWGRZQRQWKH DPRXQWRISDSHUZDVWHJHQHUDWHG 8QGHUJURXQG3LSLQJ x 3LSHOLQHUHSDLUVDQGUHKDELOLWDWLRQXVLQJWUHQFKOHVV WHFKQRORJLHVFDQEHDFRVWHIIHFWLYHDOWHUQDWLYHWRRSHQWUHQFK UHSODFHPHQW x x 'LJLWDOVXEVXUIDFHLPDJLQJWHFKQRORJ\XVHGIRUWKHLQVSHFWLRQ DQGDVVHVVPHQWRISLSHOLQHVLVDQH[FHOOHQWDOWHUQDWLYHWRRSHQ WUHQFKFXWV7KLVWHFKQRORJ\XVHVDKLJKUHVROXWLRQGLJLWDO RSWLFDOVFDQQHUDQGDFRQWLQXRXVGLUHFWLRQDOO\RULHQWHG GHJUHHVFDQQHGYLVXDOLPDJHVRWKDWWKHLQWHULRUVXUIDFHRI &RQVWUXFWLRQ7HFKQRORJLHV WKHSLSHLVUHFRUGHG:KHQSDLUHGZLWKWUHQFKOHVVWHFKQRORJ\ GLJLWDOVXEVXUIDFHLPDJLQJFDQVLJQL¿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³&XUHGLQ3ODFH3LSH5HSDLU´&RQVWUXFWLRQ,QGXVWU\,QVWLWXWH KWWSZZZQHZWHFKQRORJLHVRUJ(&7&LYLOFLSSLSH ,VHOH\7³'LJLWDO,PDJLQJIRU&KDUDFWHUL]LQJ3LSHOLQH'HIHFWV´ 8QLYHUVLW\RI+RXVWRQKWWSFLJPDWFLYHXKHGXFRQWHQWFRQIBH[KLEB SUHVHQWKWPO ³3LSH%XUVWLQJ´&RQVWUXFWLRQ,QGXVWU\,QVWLWXWH KWWSZZZQHZWHFKQRORJLHVRUJ(&7&LYLOEXUVWLQJ ³7HFKQRORJ\2SWLRQV´,QWHUQDWLRQDO(QYLURQPHQWDO7HFKQRORJ\ &HQWUH KWWSZZZXQHSRUMSLHWF3XEOLFDWLRQV8UEDQ8UEDQ(QYDVSWHFKB RSWLRQ &RQVWUXFWLRQ7HFKQRORJLHV &KDSWHU&RQVWUXFWLRQ7HFKQRORJLHV 6XSHUVWUXFWXUH *RDO5HGXFHWLPHHIIRUWDQGZDVWHXVLQJVXVWDLQDEOHWHFKQRORJLHV GXULQJVXSHUVWUXFWXUHZRUN .H\,VVXHV x x x 8VLQJVXVWDLQDEOHWHFKQRORJ\FDQUHGXFHSDSHUZDVWHGXULQJ VXSHUVWUXFWXUHZRUN 6XVWDLQDEOHWHFKQRORJ\JHQHUDWHVHI¿FLHQWSURMHFW FRPPXQLFDWLRQ 7LPHDQGHIIRUWFDQEHVDYHGXVLQJVXVWDLQDEOHWHFKQRORJLHV GXULQJVXSHUVWUXFWXUHZRUN $FWLRQVDQG0HWKRGV 'RFXPHQWDWLRQ x (OHFWURQLFDOO\GLVWULEXWHGRFXPHQWV6XEFRQWUDFWRUVFDQ UHYLHZWKHSODQVRQOLQHDQGSULQWRQO\WKHGUDZLQJVWKH\QHHG x (OHFWURQLFDOO\GLVWULEXWHVSHFL¿FDWLRQV6FDQLQWKH VSHFL¿FDWLRQVRQDKLJKVSHHGVFDQQHUDQGGLVWULEXWHWKHPRQD &'RUHOHFWURQLFDOO\ &RPPXQLFDWLRQ $:HEFRQQHFWHGYLGHRFDPHUDFDQSKRWRJUDSKLFDOO\ GRFXPHQWMREVLWHSURJUHVVRQOLQH7KLVFDQUHGXFHWUDYHOWLPH DQGH[SHQVHVWRJRWRWKHVLWH x 8WLOL]HWKHFDSDELOLWLHVRI3'$VSRUWDEOHODSWRSFRPSXWHUVDQG RWKHUHOHFWURQLFFRPPXQLFDWLRQGHYLFHVWRFXWGRZQRQWKH DPRXQWRISDSHUZDVWHJHQHUDWHG 7RRO7UDFNLQJ x %DUFRGLQJDQGGDWDEDVLQJVXSHUVWUXFWXUHWRROVFDQKHOS WRROUHFRYHU\IURPMREWRMRE7KLVFDQVLJQL¿FDQWO\UHGXFHWRRO UHSODFHPHQWFRVWV (VWLPDWLQJ x 8VHRQVFUHHQWDNHRIIWRROVGXULQJVXSHUVWUXFWXUHSODQQLQJ DQGHVWLPDWLQJ7KLVOHDGVWRIHZHUSULQWHGGUDZLQJVHWV 6WHHO(UHFWLRQDQG'HFNLQJ x &RQVWUXFWLRQ7HFKQRORJLHV ([SORUHQHZVWHHOHUHFWLRQWHFKQRORJLHV)RUH[DPSOHQHZ GHYLFHVFDQVDIHO\³JUDE´WKHSODFHRIVWUXFWXUDOVWHHOEDUMRLVWV DQGRWKHUGLI¿FXOWWRKDQGOHVWUXFWXUDOPDWHULDOV x :KHQDWWDFKLQJVWHHOGHFNLQJXVHVSHFLDOQDLOVGULYHQHLWKHUE\ SRZGHUSURSHOODQWSRZGHUDFWXDWHGWRROVRUE\FRPSUHVVHGDLU SQHXPDWLFWRROV 6FKHGXOLQJDQG6HTXHQFLQJ x x $'&$'PRGHORIWKHVXSHUVWUXFWXUHLVDFRVWHIIHFWLYHDQG HI¿FLHQWDOWHUQDWLYHWRDEXLOWPRFNXS,WDOVRKDVWKHSRWHQWLDO WRUHYHDOFRQVWUXFWLRQVHTXHQFHDQGVFKHGXOLQJSUREOHPVWKDW PLJKWQRWKDYHEHHQLGHQWL¿HGXVLQJDWUDGLWLRQDOPRFNXS (PHUJLQJ7HFKQRORJ\ 6WUXFWXUDO)UDPLQJ0RGHO8VHGRQWKH6ROLGHU)LHOG3URMHFW $'PRGHOVKDUHGEHWZHHQ GHVLJQHUDQGIDEULFDWRU FDQHOLPLQDWHWKHQHHG WRFUHDWHVKRSGUDZLQJV DSURFHVVYXOQHUDEOHWR KXPDQHUURU,QVWHDGWKH VWHHOGHWDLOHUHQKDQFHVWKH HQJLQHHU¶VGHVLJQPRGHO E\DGGLQJDOOWKHHOHPHQWV VXFKDVEROWKROHVEROWVDQJOHVDQGSODWHVUHTXLUHGIRU IDEULFDWLRQDQGHUHFWLRQ7KHSURFHVVPLQLPL]HVUHTXHVWV IRULQIRUPDWLRQDQGUHGXFHVWKHWLPHWRDQVZHUWKHP 5HIHUHQFHV ³$WWDFKPHQWRI6WHHO'HFNLQJXVLQJ0HFKDQLFDO)DVWHQHUVDQG3RZGHU $FWXDWHGRU3QHXPDWLF7RROV´&RQVWUXFWLRQ,QGXVWU\,QVWLWXWH KWWSZZZQHZWHFKQRORJLHVRUJ(&7&LYLOIDVWHQHUV +DPSWRQ7³)LUPV$UH8VLQJ7RRO7UDFNLQJIRU6PDUWHU$VVHW 0DQDJHPHQW´(QJLQHHULQJ1HZV5HFRUGKWWSZZZHQUFRPIHDWXUHV WHFKQRORJ\HFRQVWDUFKLYHVDVS 3RVW1³6WDGLXP(QJLQHHU'ULYHV7RZDUG3DSHUOHVV 3URMHFW´(QJLQHHULQJ1HZV5HFRUGKWWSZZZHQUFRPIHDWXUHV WHFKQRORJ\HFRQVWDUFKLYHVDVS 5RH$³%XLOGLQJ'LJLWDOO\3URYLGHV6FKHGXOH&RVW (I¿FLHQFLHV´(QJLQHHULQJ1HZV5HFRUGKWWSZZZHQUFRPIHDWXUHV WHFKQRORJ\HFRQVWDUFKLYHVEDVS &RQVWUXFWLRQ7HFKQRORJLHV &KDSWHU&RQVWUXFWLRQ7HFKQRORJLHV ([WHULRU(QFORVXUH *RDO5HGXFHWLPHHIIRUWDQGZDVWHXVLQJVXVWDLQDEOHWHFKQRORJLHV GXULQJH[WHULRUFORVXUHZRUN .H\,VVXHV x x x 8VLQJVXVWDLQDEOHWHFKQRORJ\FDQUHGXFHSDSHUZDVWHGXULQJ H[WHULRUFORVHUZRUN 6XVWDLQDEOHWHFKQRORJ\JHQHUDWHVHI¿FLHQWSURMHFW FRPPXQLFDWLRQ 7LPHDQGHIIRUWFDQEHVDYHGXVLQJVXVWDLQDEOHWHFKQRORJLHV GXULQJH[WHULRUFORVXUHZRUN $FWLRQVDQG0HWKRGV 'RFXPHQWDWLRQ x 'LJLWDOSKRWRJUDSKVFDQHOLPLQDWHWKHQHHGWRWDNHSDJHVRI ¿HOGREVHUYDWLRQQRWHV1RZWKHVH¿HOGREVHUYDWLRQQRWHERRNV FDQEHUHSODFHGZLWKDGLJLWDOSKRWRGLDU\RIWKHSURMHFW x (OHFWURQLFDOO\GLVWULEXWHGRFXPHQWV6XEFRQWUDFWRUVFDQ UHYLHZWKHSODQVRQOLQHDQGSULQWRQO\WKHGUDZLQJVWKH\QHHG (OHFWURQLFDOO\GLVWULEXWHVSHFL¿FDWLRQV6FDQLQWKH VSHFL¿FDWLRQVRQDKLJKVSHHGVFDQQHUDQGGLVWULEXWHWKHPRQD &'RUHOHFWURQLFDOO\ x %\XVLQJGLJLWDOSKRWRJUDSKVDQG*36WHFKQRORJ\SURMHFW GRFXPHQWDWLRQHI¿FLHQF\FDQEHLPSURYHG&RPELQLQJGLJLWDO SKRWRVZLWKDJOREDOSRVLWLRQGDWDEDVHDOORZVSLFWXUHVWREH PDUNHGDWWKHORFDWLRQLQWKHSURMHFWZKHUHWKH\ZKHUHWDNHQ &RPPXQLFDWLRQ x $:HEFRQQHFWHGYLGHRFDPHUDFDQSKRWRJUDSKLFDOO\ GRFXPHQWMREVLWHSURJUHVVRQOLQH7KLVFDQUHGXFHWUDYHOWLPH DQGH[SHQVHVWRJRWRWKHVLWH x x x 8WLOL]HWKHFDSDELOLWLHVRI3'$VSRUWDEOHODSWRSFRPSXWHUVDQG RWKHUHOHFWURQLFFRPPXQLFDWLRQGHYLFHVWRFXWGRZQRQWKH DPRXQWRISDSHUZDVWHJHQHUDWHG 'LJLWDOSKRWRVDOORZ\RXWRWDNHDVQDSVKRWRIDQDFWLYLW\RU ORFDWLRQDQGWKHQGLVVHPLQDWHLWZLWKLQPLQXWHV7KLVFDQKHOS &RQVWUXFWLRQ7HFKQRORJLHV GHFUHDVHFRPPXQLFDWLRQWLPHWRUHVROYHLVVXHVRUSUREOHPV ZLWKWKHSURMHFW 7RRO7UDFNLQJ x %DUFRGLQJDQGGDWDEDVLQJH[WHULRUWRROVFDQKHOSWRRO UHFRYHU\IURPMREWRMRE7KLVFDQVLJQL¿FDQWO\UHGXFHWRRO UHSODFHPHQWFRVWV (VWLPDWLQJ x 8VHRQVFUHHQWDNHRIIWRROVGXULQJH[WHULRUFORVXUHSODQQLQJ DQGHVWLPDWLQJ7KLVOHDGVWRIHZHUSULQWHGGUDZLQJVHWV 6RXQG%DUULHUV x 8OWUDVFUHHQVLJKWDQGVRXQGEDUULHUVDUHOLJKWZHLJKWSDQHOV WKDWUHTXLUHQRVSHFLDOHTXLSPHQWIRULQVWDOODWLRQPDLQWHQDQFHRU UHSODFHPHQWPDNLQJWKHPDQH[FHOOHQWDOWHUQDWLYHWRWUDGLWLRQDO VLJKWDQGVRXQGEDUULHUV (PHUJLQJ7HFKQRORJ\ &RPELQLQJ'LJLWDO3KRWRVZLWK5HDO7LPH*36LQIRUPDWLRQ $QH[DPSOHRIDGLJLWDOLPDJHZLWK*36SURMHFWORFDWLRQLQIRUPDWLRQDSSOLHG 5HIHUHQFHV +DPSWRQ7³)LUPV$UH8VLQJ7RRO7UDFNLQJIRU6PDUWHU$VVHW 0DQDJHPHQW´(QJLQHHULQJ1HZV5HFRUGKWWSZZZHQUFRPIHDWXUHV WHFKQRORJ\HFRQVWDUFKLYHVDVS +DPSWRQ7³3URMHFW7HDPV8VH'LJLWDO&DPHUDV7R6KRRW,W 7KHQ6KDUH,W´(QJLQHHULQJ1HZV5HFRUGKWWSZZZHQUFRPIHDWXUHV WHFKQRORJ\HFRQVWDUFKLYHVDVS ³8OWUDVFUHHQ6LJKWDQG6RXQG%DUULHU´&RQVWUXFWLRQ,QGXVWU\ ,QVWLWXWHKWWSZZZHFQSXUGXHHGX(&7&LYLOXOWUDVFUHHQKWP &RQVWUXFWLRQ7HFKQRORJLHV &KDSWHU&RQVWUXFWLRQ7HFKQRORJLHV 5RR¿QJ *RDO5HGXFHWLPHHIIRUWDQGZDVWHXVLQJVXVWDLQDEOHWHFKQRORJLHV GXULQJURR¿QJZRUN .H\,VVXHV x x x 8VLQJVXVWDLQDEOHWHFKQRORJ\FDQUHGXFHSDSHUZDVWHGXULQJD URR¿QJLQVWDOODWLRQ 6XVWDLQDEOHWHFKQRORJ\JHQHUDWHVHI¿FLHQWSURMHFW FRPPXQLFDWLRQ 7LPHDQGHIIRUWFDQEHVDYHGXVLQJVXVWDLQDEOHWHFKQRORJLHV GXULQJURR¿QJZRUN $FWLRQVDQG0HWKRGV 'RFXPHQWDWLRQ x (OHFWURQLFDOO\GLVWULEXWHGRFXPHQWV6XEFRQWUDFWRUVFDQ UHYLHZWKHSODQVRQOLQHDQGSULQWRQO\WKHGUDZLQJVWKH\QHHG x (OHFWURQLFDOO\GLVWULEXWHVSHFL¿FDWLRQV6FDQLQWKH VSHFL¿FDWLRQVRQDKLJKVSHHGVFDQQHUDQGGLVWULEXWHWKHPRQD &'RUHOHFWURQLFDOO\ 'LJLWDOSKRWRJUDSKVFDQHOLPLQDWHWKHQHHGWRWDNHSDJHVRI ¿HOGREVHUYDWLRQQRWHV1RZWKHVH¿HOGREVHUYDWLRQQRWHERRNV FDQEHUHSODFHGZLWKDGLJLWDOSKRWRGLDU\RIWKHSURMHFW x %\XVLQJGLJLWDOSKRWRJUDSKVDQG*36WHFKQRORJ\SURMHFW GRFXPHQWDWLRQHI¿FLHQF\FDQEHLPSURYHG&RPELQLQJGLJLWDO SKRWRVZLWKDJOREDOSRVLWLRQGDWDEDVHDOORZVSLFWXUHVWRPDUNHG DWWKHORFDWLRQLQSURMHFWZKHUHWKH\ZKHUHWDNHQ &RPPXQLFDWLRQ x $:HEFRQQHFWHGYLGHRFDPHUDFDQSKRWRJUDSKLFDOO\ GRFXPHQWMREVLWHSURJUHVVRQOLQH7KLVFDQUHGXFHWUDYHOWLPH DQGH[SHQVHVWRWKHVLWH x x x 8WLOL]HWKHFDSDELOLWLHVRI3'$VSRUWDEOHODSWRSFRPSXWHUVDQG RWKHUHOHFWURQLFFRPPXQLFDWLRQGHYLFHVWRFXWGRZQRQWKH DPRXQWRISDSHUZDVWHJHQHUDWHG 'LJLWDOSKRWRVDOORZ\RXWRWDNHDVQDSVKRWRIDQDFWLYLW\RU ORFDWLRQDQGWKHQGLVVHPLQDWHLWZLWKLQPLQXWHV7KLVFDQKHOS &RQVWUXFWLRQ7HFKQRORJLHV GHFUHDVHFRPPXQLFDWLRQWLPHWRUHVROYHLVVXHVRUSUREOHPV ZLWKWKHSURMHFW (VWLPDWLQJ x 8VHRQVFUHHQWDNHRIIWRROVGXULQJURRISODQQLQJDQG HVWLPDWLQJ7KLVOHDGVWRIHZHUSULQWHGGUDZLQJVHWV 6HTXHQFLQJDQG6FKHGXOLQJ x $'&$'PRGHORIWKHURRILVDFRVWHIIHFWLYHDQGHI¿FLHQW DOWHUQDWLYHWRDEXLOWPRFNXS,WDOVRKDVWKHSRWHQWLDOWRUHYHDO FRQVWUXFWLRQVHTXHQFHDQGVFKHGXOLQJSUREOHPVWKDWPLJKWQRW KDYHEHHQLGHQWL¿HGXVLQJDWUDGLWLRQDOPRFNXS %XLOGLQJ(QHUJ\3HUIRUPDQFH x 7KH&RRO5RRI&DOFXODWRUZLOOHVWLPDWHKRZPXFKHQHUJ\\RX¶OO VDYHLQWKHVXPPHUDQGKRZPXFKH[WUDHQHUJ\\RX¶OOQHHGLQ WKHZLQWHU (PHUJLQJ7HFKQRORJ\ 7KH&RRO5RRI&DOFXODWRU 7KH&RRO5RRI&DOFXODWRUSURYLGHVDQVZHUV RQDµSHUVTXDUHIRRW¶EDVLVVR\RXFDQWKHQ PXOWLSO\E\WKHDUHDRI\RXUURRIWR¿QGRXW\RXU QHWVDYLQJVHDFK\HDU 5HIHUHQFHV ³&RRO5RRI&DOFXODWRU´%XLOGLQJ(QHUJ\6RIWZDUH7RROV 'LUHFWRU\KWWSZZZHHUHHQHUJ\JRYEXLOGLQJVWRROVBGLUHFWRU\VRIWZDUH FRROURRIFDOFXODWRUKWPO +DPSWRQ7³)LUPV$UH8VLQJ7RRO7UDFNLQJIRU6PDUWHU$VVHW 0DQDJHPHQW´(QJLQHHULQJ1HZV5HFRUGKWWSZZZHQUFRPIHDWXUHV WHFKQRORJ\HFRQVWDUFKLYHVDVS +DPSWRQ7³3URMHFW7HDPV8VH'LJLWDO&DPHUDV7R6KRRW,W 7KHQ6KDUH,W´(QJLQHHULQJ1HZV5HFRUGKWWSZZZHQUFRPIHDWXUHV WHFKQRORJ\HFRQVWDUFKLYHVDVS ³0DJLFKDON´7KRU6\VWHPV,QFKWWSZZZWKRUWRROVFRP SURGXFWVDVS"3URGXFW,' &RQVWUXFWLRQ7HFKQRORJLHV &KDSWHU&RQVWUXFWLRQ7HFKQRORJLHV ,QWHULRU&RQVWUXFWLRQ *RDO5HGXFHWLPHHIIRUWDQGZDVWHXVLQJVXVWDLQDEOHWHFKQRORJLHV GXULQJLQWHULRUFRQVWUXFWLRQZRUN .H\,VVXHV x x x 8VLQJVXVWDLQDEOHWHFKQRORJ\FDQUHGXFHSDSHUZDVWHGXULQJ LQWHULRUFRQVWUXFWLRQDFWLYLWLHV 6XVWDLQDEOHWHFKQRORJ\JHQHUDWHVHI¿FLHQWSURMHFW FRPPXQLFDWLRQ 7LPHDQGHIIRUWFDQEHVDYHGXVLQJVXVWDLQDEOHWHFKQRORJLHV GXULQJLQWHULRUFORVXUHZRUN $FWLRQVDQG0HWKRGV 'RFXPHQWDWLRQ x (OHFWURQLFDOO\GLVWULEXWHGRFXPHQWV6XEFRQWUDFWRUVFDQ UHYLHZWKHSODQVRQOLQHDQGSULQWRQO\WKHGUDZLQJVWKH\QHHG x (OHFWURQLFDOO\GLVWULEXWHVSHFL¿FDWLRQV6FDQLQWKH VSHFL¿FDWLRQVRQDKLJKVSHHGVFDQQHUDQGGLVWULEXWHWKHPRQD &'RUHOHFWURQLFDOO\ x 'LJLWDOSKRWRJUDSKVFDQHOLPLQDWHWKHQHHGWRWDNHSDJHVRI ¿HOGREVHUYDWLRQQRWHV1RZWKHVH¿HOGREVHUYDWLRQQRWHERRNV FDQEHUHSODFHGZLWKDGLJLWDOSKRWRGLDU\RIWKHSURMHFW %\XVLQJGLJLWDOSKRWRJUDSKVDQG*36WHFKQRORJ\SURMHFW GRFXPHQWDWLRQHI¿FLHQF\FDQEHLPSURYHG&RPELQLQJGLJLWDO SKRWRVDQGDJOREDOSRVLWLRQGDWDEDVHDOORZVSLFWXUHVWRPDUNHG DWWKHORFDWLRQLQDSURMHFWZKHUHWKH\ZKHUHWDNHQ &RPPXQLFDWLRQ x $:HEFRQQHFWHGYLGHRFDPHUDFDQSKRWRJUDSKLFDOO\ GRFXPHQWMREVLWHSURJUHVVRQOLQH7KLVFDQUHGXFHWUDYHOWLPH DQGH[SHQVHVWRWKHVLWH x 8WLOL]HWKHFDSDELOLWLHVRI3'$VSRUWDEOHODSWRSFRPSXWHUVDQG RWKHUHOHFWURQLFFRPPXQLFDWLRQGHYLFHVWRFXWGRZQRQWKH DPRXQWRISDSHUZDVWHJHQHUDWHG x 'LJLWDOSKRWRVDOORZRQHWRWDNHDVQDSVKRWRIDQDFWLYLW\RU ORFDWLRQDQGWKHQGLVVHPLQDWHLWZLWKLQPLQXWHV7KLVFDQKHOS x &RQVWUXFWLRQ7HFKQRORJLHV GHFUHDVHFRPPXQLFDWLRQWLPHWRUHVROYHLVVXHVRUSUREOHPV RQWKHSURMHFW (VWLPDWLQJ 8VHRQVFUHHQWDNHRIIWRROVGXULQJLQWHULRUFRQVWUXFWLRQ SODQQLQJDQGHVWLPDWLQJ7KLVOHDGVWRIHZHUSULQWHGGUDZLQJ VHWV 6HTXHQFLQJDQG6FKHGXOLQJ x $'&$'PRGHORIWKHLQWHULRUVSDFHLVDFRVWHIIHFWLYHDQG HI¿FLHQWDOWHUQDWLYHWRDEXLOWPRFNXS,WDOVRWKHDELOLW\WRGLVSOD\ LQWHULRU¿QLVKFRORUVDUWL¿FLDODQGQDWXUDOOLJKWSDWWHUQVDQGWKH LQWHULRUFRQVWUXFWLRQVHTXHQFH x (PHUJLQJ7HFKQRORJ\ '&$'$SSOLFDWLRQV 7KHVHWZRSLFWXUHVVKRZDQHUURULQ WKHVHTXHQFLQJRIWKHUGÀRRUGHFN DQGWKHUGÀRRUFROXPQV7KHWRS SLFWXUHVKRZVWKHUGÀRRUFROXPQV EHLQJHUHFWHGSULRUWRWKHFRPSOHWLRQRI WKHUGÀRRUGHFNLQWKHERWWRPSLFWXUH '&$'FDQJUHDWO\DVVLVWLQ¿QGLQJ VHTXHQFLQJLVVXHVHDUO\LQWKHSURMHFW ZKHQWKH\FDQEHDQWLFLSDWHGDQGGHDOW ZLWKLQDPDQQHUZKLFKGRHVQRWDIIHFW WKHEXLOGLQJ¶VFRPSOHWLRQ 5HIHUHQFHV +DPSWRQ7³)LUPV$UH8VLQJ7RRO7UDFNLQJIRU6PDUWHU$VVHW 0DQDJHPHQW´(QJLQHHULQJ1HZV5HFRUGKWWSZZZHQUFRPIHDWXUHV WHFKQRORJ\HFRQVWDUFKLYHVDVS +DPSWRQ7³3URMHFW7HDPV8VH'LJLWDO&DPHUDV7R6KRRW,W 7KHQ6KDUH,W´(QJLQHHULQJ1HZV5HFRUGKWWSZZZHQUFRPIHDWXUHV WHFKQRORJ\HFRQVWDUFKLYHVDVS 5RH$³1HZ3OD\HUV3XVK3URMHFW0DQDJHPHQWWRWKH :HE´(QJLQHHULQJ1HZV5HFRUGKWWSZZZHQUFRPIHDWXUHV WHFKQRORJ\HFRQVWDUFKLYHVEDVS &RQVWUXFWLRQ7HFKQRORJLHV &KDSWHU&RQVWUXFWLRQ7HFKQRORJLHV &RQYH\LQJ6\VWHPV *RDO5HGXFHWLPHHIIRUWDQGZDVWHXVLQJVXVWDLQDEOHWHFKQRORJLHV GXULQJWKHFRQVWUXFWLRQRIWKHFRQYH\LQJV\VWHP .H\,VVXHV x x x 8VLQJVXVWDLQDEOHWHFKQRORJ\FDQUHGXFHSDSHUZDVWHGXULQJ FRQYH\LQJV\VWHPZRUN 6XVWDLQDEOHWHFKQRORJ\JHQHUDWHVHI¿FLHQWSURMHFW FRPPXQLFDWLRQ 7LPHDQGHIIRUWFDQEHVDYHGXVLQJVXVWDLQDEOHWHFKQRORJLHV GXULQJFRQYH\LQJV\VWHPZRUN $FWLRQVDQG0HWKRGV 'RFXPHQWDWLRQ x (OHFWURQLFDOO\GLVWULEXWHGRFXPHQWV6XEFRQWUDFWRUVFDQ UHYLHZWKHSODQVRQOLQHDQGSULQWRQO\WKHGUDZLQJVWKH\QHHG x (OHFWURQLFDOO\GLVWULEXWHVSHFL¿FDWLRQV6FDQLQWKH VSHFL¿FDWLRQVRQDKLJKVSHHGVFDQQHUDQGGLVWULEXWHWKHPRQD &'RUHOHFWURQLFDOO\ 'LJLWDOSKRWRJUDSKVFDQHOLPLQDWHWKHQHHGWRWDNHSDJHVRI ¿HOGREVHUYDWLRQQRWHV1RZWKHVH¿HOGREVHUYDWLRQQRWHERRNV FDQEHUHSODFHGZLWKDGLJLWDOSKRWRGLDU\RIWKHSURMHFW x %\XVLQJGLJLWDOSKRWRJUDSKVDQG*36WHFKQRORJ\SURMHFW GRFXPHQWDWLRQHI¿FLHQF\FDQEHLPSURYHG&RPELQLQJGLJLWDO SKRWRVDQGDJOREDOSRVLWLRQGDWDEDVHDOORZVSLFWXUHVWRPDUNHG DWWKHORFDWLRQLQDSURMHFWZKHUHWKH\ZKHUHWDNHQ &RPPXQLFDWLRQ x $:HEFRQQHFWHGYLGHRFDPHUDFDQSKRWRJUDSKLFDOO\ GRFXPHQWMREVLWHSURJUHVVRQOLQH7KLVFDQUHGXFHWUDYHOWLPH DQGH[SHQVHVWRJRWRWKHVLWH x x x 8WLOL]HWKHFDSDELOLWLHVRI3'$VSRUWDEOHODSWRSFRPSXWHUVDQG RWKHUHOHFWURQLFFRPPXQLFDWLRQGHYLFHVWRFXWGRZQRQWKH DPRXQWRISDSHUZDVWHJHQHUDWHG 'LJLWDOSKRWRVDOORZ\RXWRWDNHDVQDSVKRWRIDQDFWLYLW\RU ORFDWLRQDQGWKHQGLVVHPLQDWHLWZLWKLQPLQXWHV7KLVFDQKHOS &RQVWUXFWLRQ7HFKQRORJLHV GHFUHDVHFRPPXQLFDWLRQWLPHWRUHVROYHLVVXHVRUSUREOHPV ZLWKWKHSURMHFW (VWLPDWLQJ x 8VHRQVFUHHQWDNHRIIWRROVGXULQJFRQYH\LQJV\VWHPV SODQQLQJDQGHVWLPDWLQJ7KLVOHDGVWRIHZHUSULQWHGGUDZLQJ VHWV 5HIHUHQFHV +DPSWRQ7³)LUPV$UH8VLQJ7RRO7UDFNLQJIRU6PDUWHU$VVHW 0DQDJHPHQW´(QJLQHHULQJ1HZV5HFRUGKWWSZZZHQUFRPIHDWXUHV WHFKQRORJ\HFRQVWDUFKLYHVDVS 5RH$³1HZ3OD\HUV3XVK3URMHFW0DQDJHPHQWWRWKH :HE´(QJLQHHULQJ1HZV5HFRUGKWWSZZZHQUFRPIHDWXUHV WHFKQRORJ\HFRQVWDUFKLYHVEDVS &RQVWUXFWLRQ7HFKQRORJLHV &KDSWHU&RQVWUXFWLRQ7HFKQRORJLHV 0HFKDQLFDO *RDO5HGXFHWLPHHIIRUWDQGZDVWHXVLQJVXVWDLQDEOHWHFKQRORJLHVLQ WKHFRQVWUXFWLRQRIWKHPHFKDQLFDOV\VWHP .H\,VVXHV x x x 8VLQJVXVWDLQDEOHWHFKQRORJ\FDQUHGXFHSDSHUZDVWHGXULQJ PHFKDQLFDOZRUN 6XVWDLQDEOHWHFKQRORJ\JHQHUDWHVHI¿FLHQWSURMHFW FRPPXQLFDWLRQ 7LPHDQGHIIRUWFDQEHVDYHGXVLQJVXVWDLQDEOHWHFKQRORJLHV GXULQJPHFKDQLFDOZRUN $FWLRQVDQG0HWKRGV 'RFXPHQWDWLRQ x (OHFWURQLFDOO\GLVWULEXWHGRFXPHQWV6XEFRQWUDFWRUVFDQ UHYLHZWKHSODQVRQOLQHDQGSULQWRQO\WKHGUDZLQJVWKH\QHHG x (OHFWURQLFDOO\GLVWULEXWHVSHFL¿FDWLRQV6FDQLQWKH VSHFL¿FDWLRQVRQDKLJKVSHHGVFDQQHUDQGGLVWULEXWHWKHPRQD &'RUHOHFWURQLFDOO\ 'LJLWDOSKRWRJUDSKVFDQHOLPLQDWHWKHQHHGWRWDNHSDJHVRI ¿HOGREVHUYDWLRQQRWHV1RZWKHVH¿HOGREVHUYDWLRQQRWHERRNV FDQEHUHSODFHGZLWKDGLJLWDOSKRWRGLDU\RIWKHSURMHFW x %\XVLQJGLJLWDOSKRWRJUDSKVDQG*36WHFKQRORJ\SURMHFW GRFXPHQWDWLRQHI¿FLHQF\FDQEHLPSURYHG&RPELQLQJGLJLWDO SKRWRVDQGDJOREDOSRVLWLRQGDWDEDVHDOORZVSLFWXUHVWRPDUNHG DWWKHORFDWLRQLQDSURMHFWZKHUHWKH\ZKHUHWDNHQ &RPPXQLFDWLRQ x $:HEFRQQHFWHGYLGHRFDPHUDFDQSKRWRJUDSKLFDOO\ GRFXPHQWMREVLWHSURJUHVVRQOLQH7KLVFDQUHGXFHWUDYHOWLPH DQGH[SHQVHVWRJRWRWKHVLWH x 8WLOL]HWKHFDSDELOLWLHVRI3'$VSRUWDEOHODSWRSFRPSXWHUVDQG RWKHUHOHFWURQLFFRPPXQLFDWLRQGHYLFHVWRFXWGRZQRQWKH DPRXQWRISDSHUZDVWHJHQHUDWHG (VWLPDWLQJ x 8VHRQVFUHHQWDNHRIIWRROVGXULQJPHFKDQLFDOV\VWHP x &RQVWUXFWLRQ7HFKQRORJLHV SODQQLQJDQGHVWLPDWLQJ7KLVOHDGVWRIHZHUSULQWHGGUDZLQJ VHWV 6HTXHQFLQJDQG6FKHGXOLQJ x $'&$'PRGHORIWKHPHFKDQLFDOV\VWHPOD\RXWLVDFRVW HIIHFWLYHDQGHI¿FLHQWDOWHUQDWLYHWRDEXLOWPRFNXS,WDOVRKDV WKHSRWHQWLDOWRUHYHDOFRQVWUXFWLRQVHTXHQFHDQGVFKHGXOLQJ SUREOHPVWKDWPLJKWQRWKDYHEHHQLGHQWL¿HGXVLQJDWUDGLWLRQDO PRFNXS 3LSLQJ x )ULFWLRQVWLUZHOGLQJWHFKQRORJ\KDVWKHDELOLW\WRSURYLGH JUHDWO\LPSURYHGZHOGSURSHUWLHVDVDQDOXPLQXPMRLQLQJ PHWKRG x &KDLQFODPSVDUHYHUVDWLOHDOWHUQDWLYHVWRWUDGLWLRQDOPHWKRGV RISLSH¿WXSDVHDFKFODPSFDQ¿WXSHOERZVWHHVÀDQJHVDQG RWKHUSLSH¿WWLQJV x 7RORFDWHOHDNVLQSUHVVXUL]HGZDWHUSLSHVQHZWHFKQRORJ\ LVDYDLODEOHWKDWXWLOL]HVDFRXVWLFOHDNQRLVHVHQVHGDWWZR ORFDWLRQVRQDSLSHRQHRQHLWKHUVLGHRIDVXVSHFWHGOHDN 7KLVQHZWHFKQRORJ\ZRUNVRQDOOSLSHVLQFOXGLQJSODVWLF39& DQGHOLPLQDWHVWKHKLJKFRVWDQGGLI¿FXOWO\RIXVHWUDGLWLRQDOO\ DVVRFLDWHGZLWKOHDNQRLVHFRUUHODWRUV (PHUJLQJ7HFKQRORJ\ '&$'LQD9LUWXDO(QYLURQPHQW '&DGDQG950/PRGHOLQJDOORZVIRUD FRPSUHKHQVLYHXQGHUVWDQGLQJRIPHFKDQLFDO FRQVWUXFWLRQ7KHYLHZHUKDVWKHDELOLW\ WRQDYLJDWHWKURXJKWKHVSDFHRQD VFDOH7KLVFDQUHYHDOSRWHQWLDOGHVLJQDQG FRQVWUXFWLRQVHTXHQFLQJSUREOHPVDQG PHWKRGV &RQVWUXFWLRQ7HFKQRORJLHV 5HIHUHQFHV ³)ULFWLRQ6WLU:HOGLQJ7HFKQRORJ\$GRSWLQJ1$6$¶V5HWUDFWDEOH 3LQ7RRO´&RQVWUXFWLRQ,QGXVWU\,QVWLWXWHKWWSZZZQHZ WHFKQRORJLHVRUJ(&70HFKDQLFDOIVZKWP +DQVHQ'&D'&RPPHUFLDO%XLOGLQJV5'DQG$QDO\VLV 7RROV$6(577,&ROODERUDWLRQ0HHWLQJKWWSFLHHXFRSHGXGRFV FRPPEXLOGSGI +DPSWRQ7³)LUPV$UH8VLQJ7RRO7UDFNLQJIRU6PDUWHU$VVHW 0DQDJHPHQW´(QJLQHHULQJ1HZV5HFRUGKWWSZZZHQUFRPIHDWXUHV WHFKQRORJ\HFRQVWDUFKLYHVDVS 5RH$³1HZ3OD\HUV3XVK3URMHFW0DQDJHPHQWWRWKH :HE´(QJLQHHULQJ1HZV5HFRUGKWWSZZZHQUFRPIHDWXUHV WHFKQRORJ\HFRQVWDUFKLYHVEDVS ³8UEDQLQIUDVWUXFWXUHUHKDELOLWDWLRQ1HZ/HDN¿QGHU57WHFKQRORJ\KRZ LWZRUNV´&RQVWUXFWLRQ,QQRYDWLRQKWWSLUFQUFFQUFJFFD QHZVOHWWHUYQRWHFKQRORJ\BHKWPO &RQVWUXFWLRQ7HFKQRORJLHV &KDSWHU&RQVWUXFWLRQ7HFKQRORJLHV (OHFWULFDO *RDO5HGXFHWLPHHIIRUWDQGZDVWHXVLQJVXVWDLQDEOHWHFKQRORJLHVLQ WKHFRQVWUXFWLRQRIWKHHOHFWULFDOV\VWHP .H\,VVXHV x x x 8VLQJVXVWDLQDEOHWHFKQRORJ\FDQUHGXFHSDSHUZDVWHGXULQJ HOHFWULFDOZRUN 6XVWDLQDEOHWHFKQRORJ\JHQHUDWHVHI¿FLHQWSURMHFW FRPPXQLFDWLRQ 7LPHDQGHIIRUWFDQEHVDYHGXVLQJVXVWDLQDEOHWHFKQRORJLHV GXULQJHOHFWULFDOZRUN $FWLRQVDQG0HWKRGV 'RFXPHQWDWLRQ x (OHFWURQLFDOO\GLVWULEXWHGRFXPHQWV6XEFRQWUDFWRUVFDQ UHYLHZWKHSODQVRQOLQHDQGSULQWRQO\WKHGUDZLQJVWKH\QHHG x (OHFWURQLFDOO\GLVWULEXWHVSHFL¿FDWLRQV6FDQLQWKH VSHFL¿FDWLRQVRQDKLJKVSHHGVFDQQHUDQGGLVWULEXWHWKHPRQD &'RUHOHFWURQLFDOO\ 'LJLWDOSKRWRJUDSKVFDQHOLPLQDWHWKHQHHGWRWDNHSDJHVRI ¿HOGREVHUYDWLRQQRWHV1RZWKHVH¿HOGREVHUYDWLRQQRWHERRNV FDQEHUHSODFHGZLWKDGLJLWDOSKRWRGLDU\RIWKHSURMHFW x %\XVLQJGLJLWDOSKRWRJUDSKVDQG*36WHFKQRORJ\SURMHFW GRFXPHQWDWLRQHI¿FLHQF\FDQEHLPSURYHG&RPELQLQJGLJLWDO SKRWRVDQGDJOREDOSRVLWLRQGDWDEDVHDOORZVSLFWXUHVWREH PDUNHGDWWKHORFDWLRQLQDSURMHFWZKHUHWKH\ZKHUHWDNHQ &RPPXQLFDWLRQ x $:HEFRQQHFWHGYLGHRFDPHUDFDQSKRWRJUDSKLFDOO\ GRFXPHQWMREVLWHSURJUHVVRQOLQH7KLVFDQUHGXFHWUDYHOWLPH DQGH[SHQVHVWRJRWRWKHVLWH x 8WLOL]HWKHFDSDELOLWLHVRI3'$VSRUWDEOHODSWRSFRPSXWHUVDQG RWKHUHOHFWURQLFFRPPXQLFDWLRQGHYLFHVWRFXWGRZQRQWKH DPRXQWRISDSHUZDVWHJHQHUDWHG (VWLPDWLQJ x 8VHRQVFUHHQWDNHRIIWRROVGXULQJHOHFWULFDOV\VWHPSODQQLQJ DQGHVWLPDWLQJ7KLVOHDGVWRIHZHUSULQWHGGUDZLQJVHWV &RQVWUXFWLRQ7HFKQRORJLHV x 6HTXHQFLQJDQG6FKHGXOLQJ x $'&$'PRGHORIWKHHOHFWULFDOOD\RXWLVDFRVWHIIHFWLYHDQG HI¿FLHQWDOWHUQDWLYHWRDEXLOWPRFNXS,WDOVRKDVWKHSRWHQWLDO WRUHYHDOFRQVWUXFWLRQVHTXHQFHDQGVFKHGXOLQJSUREOHPVWKDW PLJKWQRWKDYHEHHQLGHQWL¿HGXVLQJDWUDGLWLRQDOPRFNXS 5HIHUHQFHV +DPSWRQ7³)LUPV$UH8VLQJ7RRO7UDFNLQJIRU6PDUWHU$VVHW 0DQDJHPHQW´(QJLQHHULQJ1HZV5HFRUGKWWSZZZHQUFRPIHDWXUHV WHFKQRORJ\HFRQVWDUFKLYHVDVS 5RH$³1HZ3OD\HUV3XVK3URMHFW0DQDJHPHQWWRWKH :HE´(QJLQHHULQJ1HZV5HFRUGKWWSZZZHQUFRPIHDWXUHV WHFKQRORJ\HFRQVWDUFKLYHVEDVS &RQVWUXFWLRQ7HFKQRORJLHV &KDSWHU&RQVWUXFWLRQ7HFKQRORJLHV ,QIRUPDWLRQ7HFKQRORJ\ *RDO5HGXFHWLPHHIIRUWDQGZDVWHXVLQJVXVWDLQDEOHLQIRUPDWLRQ WHFKQRORJLHV .H\,VVXHV x x x 8VLQJVXVWDLQDEOHLQIRUPDWLRQWHFKQRORJ\FDQUHGXFHSDSHU ZDVWH 6XVWDLQDEOHLQIRUPDWLRQWHFKQRORJ\JHQHUDWHVHI¿FLHQWSURMHFW FRPPXQLFDWLRQ 7LPHDQGHIIRUWFDQEHVDYHGXVLQJVXVWDLQDEOHLQIRUPDWLRQ WHFKQRORJLHV $FWLRQVDQG0HWKRGV x x :LUHOHVVFHLOLQJV\VWHPVHQDEOHVZLUHOHVVFRPPXQLFDWLRQV WKDWHQKDQFHHPSOR\HHPRELOLW\DQGZRUNSODFHHIIHFWLYHQHVV WKURXJKRXWWKHEXLOGLQJ %OXHWRRWKWHFKQRORJ\PDNHVLVSRVVLEOHWRWUDQVPLWVLJQDOV RYHUVKRUWGLVWDQFHVEHWZHHQPRELOH3&¶VPRELOHSKRQHVDQG RWKHUSRUWDEOHGHYLFHV%OXHWRRWKFDQRIIHUIDVWDQGVHFXUH DFFHVVWRZLUHOHVVFRQQHFWLYLW\DOORYHUWKHZRUOGLQFOXGLQJ UHPRWHSURMHFWVLWHV 5HIHUHQFHV ³3DOP(VWLPDWLQJ´&RQVWUXFWLRQ,QGXVWU\,QVWLWXWHKWWSZZZ QHZWHFKQRORJLHVRUJ(&72WKHUSDOPHVWKWP &RQVWUXFWLRQ7HFKQRORJLHV &KDSWHU&RQVWUXFWLRQ7HFKQRORJLHV (TXLSPHQW *RDO5HGXFHWLPHHIIRUWDQGZDVWHFRPELQLQJVXVWDLQDEOH WHFKQRORJLHVDQGHTXLSPHQWVHOHFWLRQ .H\,VVXHV x x x 8VLQJHTXLSPHQWZLWKVXVWDLQDEOHWHFKQRORJ\FDQUHGXFHSDSHU ZDVWH 6XVWDLQDEOHHTXLSPHQWWHFKQRORJ\JHQHUDWHVHI¿FLHQWSURMHFW FRPPXQLFDWLRQ 7LPHDQGHIIRUWFDQEHVDYHGXVLQJVXVWDLQDEOHHTXLSPHQW WHFKQRORJLHV $FWLRQVDQG0HWKRGV x 7RORFDWHOHDNVLQSUHVVXUL]HGZDWHUSLSHVQHZWHFKQRORJ\LV DYDLODEOHWKDWXWLOL]HVDFRXVWLFOHDNQRLVHVHQVHGDWWZRORFDWLRQV RQDSLSHRQHRQHLWKHUVLGHRIDVXVSHFWHGOHDN7KLVQHZ WHFKQRORJ\ZRUNVRQDOOSLSHVLQFOXGLQJSODVWLFDQGHOLPLQDWHVWKH KLJKFRVWDQGGLI¿FXOWO\RIXVHWUDGLWLRQDOO\DVVRFLDWHGZLWKOHDN QRLVHFRUUHODWRUV 5HIHUHQFHV ³8UEDQLQIUDVWUXFWXUHUHKDELOLWDWLRQ1HZ/HDN¿QGHU57WHFKQRORJ\KRZ LWZRUNV´&RQVWUXFWLRQ,QQRYDWLRQ KWWSLUFQUFFQUFJFFDQHZVOHWWHUYQRWHFKQRORJ\BHKWPO &RQVWUXFWLRQ7HFKQRORJLHV &KDSWHU&RQVWUXFWLRQ7HFKQRORJLHV )LQLVKHV *RDO5HGXFHWLPHHIIRUWDQGZDVWHXVLQJVXVWDLQDEOHWHFKQRORJLHV GXULQJ¿QLVKZRUN .H\,VVXHV x x x 8VLQJVXVWDLQDEOHWHFKQRORJ\FDQUHGXFHSDSHUZDVWHGXULQJ ¿QLVKZRUN 6XVWDLQDEOHWHFKQRORJ\JHQHUDWHVHI¿FLHQWSURMHFW FRPPXQLFDWLRQ 7LPHDQGHIIRUWFDQEHVDYHGXVLQJVXVWDLQDEOHWHFKQRORJLHV GXULQJ¿QLVKZRUN $FWLRQVDQG0HWKRGV %\XVLQJGLJLWDOSKRWRJUDSKVDQG*36WHFKQRORJ\SURMHFW GRFXPHQWDWLRQHI¿FLHQF\FDQEHLPSURYHG&RPELQLQJGLJLWDO SKRWRVDQGDJOREDOSRVLWLRQGDWDEDVHDOORZVSLFWXUHVWREH PDUNHGDWWKHORFDWLRQLQDSURMHFWZKHUHWKH\ZKHUHWDNHQ x &RUGOHVV¿QLVKQDLOHUVDOORZWKHXVHUWREHDEOHWRZRUN FRPIRUWDEO\LQFUDPSHGRYHUKHDGDQGRWKHUKDUGWRUHDFK FRQGLWLRQV2QHRIWKHJUHDWHVWEHQH¿WVLVWKLVHTXLSPHQWGRHV QRWUHTXLUHDQDLUFRPSUHVVRUIRURSHUDWLRQ 'RFXPHQWDWLRQ x x x x (OHFWURQLFDOO\GLVWULEXWHGRFXPHQWV6XEFRQWUDFWRUVFDQ UHYLHZWKHSODQVRQOLQHDQGSULQWRQO\WKHGUDZLQJVWKH\QHHG (OHFWURQLFDOO\GLVWULEXWHVSHFL¿FDWLRQV6FDQLQWKH VSHFL¿FDWLRQVRQDKLJKVSHHGVFDQQHUDQGGLVWULEXWHWKHPRQD &'RUHOHFWURQLFDOO\ 'LJLWDOSKRWRJUDSKVFDQHOLPLQDWHWKHQHHGWRWDNHSDJHVRI ¿HOGREVHUYDWLRQQRWHV1RZWKHVH¿HOGREVHUYDWLRQQRWHERRNV FDQEHUHSODFHGZLWKDGLJLWDOSKRWRGLDU\RIWKHSURMHFW %\XVLQJGLJLWDOSKRWRJUDSKVDQG*36WHFKQRORJ\SURMHFW GRFXPHQWDWLRQHI¿FLHQF\FDQEHLPSURYHG&RPELQLQJGLJLWDO SKRWRVDQGDJOREDOSRVLWLRQGDWDEDVHDOORZVSLFWXUHVWREH PDUNHGDWWKHORFDWLRQLQDSURMHFWZKHUHWKH\ZKHUHWDNHQ &RPPXQLFDWLRQ x &RQVWUXFWLRQ7HFKQRORJLHV x $:HEFRQQHFWHGYLGHRFDPHUDFDQSKRWRJUDSKLFDOO\ GRFXPHQWMREVLWHSURJUHVVRQOLQH7KLVFDQUHGXFHWUDYHOWLPH DQGH[SHQVHVWRJRWRWKHVLWH 8WLOL]HWKHFDSDELOLWLHVRI3'$VSRUWDEOHODSWRSFRPSXWHUVDQG RWKHUHOHFWURQLFFRPPXQLFDWLRQGHYLFHVWRFXWGRZQRQWKH DPRXQWRISDSHUZDVWHJHQHUDWHG (VWLPDWLQJ x 8VHRQVFUHHQWDNHRIIWRROVGXULQJ¿QLVKSODQQLQJDQG HVWLPDWLQJ7KLVOHDGVWRIHZHUSULQWHGGUDZLQJVHWV (PHUJLQJ7HFKQRORJ\ x ,PSURYLQJWKH:RUNHU¶V(QYLURQPHQW 8VH0ÂSHUVRQDODLUPRQLWRULQJV\VWHPVWRLQIRUPZRUNHUVRI KD]DUGRXVHQYLURQPHQWV7KLVWHFKQRORJ\FDQLPSURYHRFFXSDWLRQDO VDIHW\DQGKHDOWKLQFRQVWUXFWLRQZRUNSODFH 0Â$LU0RQLWRUVDUHVLPSOHDQGHIIHFWLYHGHYLFHVWKDWFROOHFW FRQWDPLQDQWVWKURXJKWKHVFLHQWL¿FSULQFLSOHRIGLIIXVLRQ7KH\SURYLGH WKHHQYLURQPHQWDOFRQWDPLQDWLRQGDWDRIDZRUNDUHDZKLFKFDQEHXVHG WRSURWHFWZRUNHUVIURPH[SRVXUHWRSRLVRQRXVHQYLURQPHQWVDQGFDQ LPSURYHRFFXSDWLRQDOVDIHW\DQGKHDOWKLQDFRQVWUXFWLRQZRUNSODFH 5HIHUHQFHV ³03HUVRQDO$LU0RQLWRULQJ6\VWHPV´&RQVWUXFWLRQ,QGXVWU\ ,QVWLWXWHKWWSZZZQHZWHFKQRORJLHVRUJ(&76DIHW\PDLUPRQLWRUV\V KWP +DPSWRQ7³)LUPV$UH8VLQJ7RRO7UDFNLQJIRU6PDUWHU$VVHW 0DQDJHPHQW´(QJLQHHULQJ1HZV5HFRUGKWWSZZZHQUFRPIHDWXUHV WHFKQRORJ\HFRQVWDUFKLYHVDVS ³3DVORGH&RUGOHVV)LQLVK1DLOHU´&RQVWUXFWLRQ,QGXVWU\,QVWLWXWH KWWSZZZQHZWHFKQRORJLHVRUJ(&7&LYLOSDVORGHKWP 5RH$³1HZ3OD\HUV3XVK3URMHFW0DQDJHPHQWWRWKH :HE´(QJLQHHULQJ1HZV5HFRUGKWWSZZZHQUFRPIHDWXUHV WHFKQRORJ\HFRQVWDUFKLYHVEDVS &RQVWUXFWLRQ7HFKQRORJLHV &KDSWHU+HDOWKDQG6DIHW\ *RDO7RLPSURYHWKHTXDOLW\RIOLIHIRUFRQVWUXFWLRQZRUNHUV %HQH¿WV x x x 0LQLPL]HGXVHRIKDUPIXOSURGXFWVRQWKHMREVLWHLQRUGHUWR UHGXFHKDUPIXODIIHFWVWRZRUNHUV ,QFUHDVHGDZDUHQHVVRIKDUPIXOSURGXFWVDQGLQJUHGLHQWVLQ RUGHUWRSURWHFWZRUNHUVDQGPLQLPL]HXVH ,QFUHDVHGXVHRISHUVRQDOVDIHW\DSSDUDWXVHV .H\V,VVXHV x x x x x x x x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³&ULWHULDIRU3HUVRQDO3URWHFWLYH(TXLSPHQW´ 2FFXSDWLRQDO6DIHW\DQG+HDOWK$GPLQLVWUDWLRQKWWSZZZRVKDJRYSOV RVKDZHERZDGLVSVKRZBGRFXPHQW"SBWDEOH 67$1'$5'6SBLG ³'HVLJQIRU&RQVWUXFWLRQ6DIHW\7RROER[´3XEOLFDWLRQ &RQVWUXFWLRQ,QGXVWU\,QVWLWXWH&,,$XVWLQ7; ³7KH2ZQHUV5ROHLQ&RQVWUXFWLRQ6DIHW\´5HVHDUFK6XPPDU\ &RQVWUXFWLRQ,QGXVWU\,QVWLWXWH$XVWLQ7; ³6DIHW\3OXV0DNLQJ=HUR$FFLGHQWVD5HDOLW\´5HVHDUFK 6XPPDU\&RQVWUXFWLRQ,QGXVWU\,QVWLWXWH$XVWLQ7; +HDOWKDQG6DIHW\ &KDSWHU+HDOWKDQG6DIHW\ 3ODQQLQJ *RDO7RLPSURYHWKHTXDOLW\RIOLIHIRUFRQVWUXFWLRQZRUNHUV .H\,VVXHV x x x 3URSHUKHDOWKDQGVDIHW\SODQQLQJLVUHTXLUHGLQPRVW VSHFL¿FDWLRQV $ZHOOGHYHORSHGDQGPDLQWDLQHGVDIHW\SODQKDVWKHSRWHQWLDOWR VDYHZRUNHUV¶OLYHV $GGUHVVLQJVDIHW\GXULQJGHVLJQFDQVLJQL¿FDQWO\UHGXFHRU HOLPLQDWHPDQ\VDIHW\KD]DUGV $FWLRQVDQG0HWKRGV 6DIHW\3ODQV x ,PSOHPHQWD¿UHFRQWUROSODQ x 5HTXLUHWKHVXEPLWWDORIDMREVLWHVDIHW\VXUYH\DQGSODQDQG DQHPHUJHQF\DFWLRQSODQIURPWKHJHQHUDOFRQWUDFWRUDQG VXEFRQWUDFWRUV x 5HTXLUHSUHFRQVWUXFWLRQPHHWLQJVEHWZHHQWKHJHQHUDO FRQWUDFWRUDQGDOOVXEFRQWUDFWRUVWRGLVFXVVVDIHW\DQG KDUPIXOVXEVWDQFHLVVXHV x 'LVFXVVKHDOWKVDIHW\,$4DQGRWKHUHQYLURQPHQWDOLVVXHVRI ZKLFKWRHGXFDWHZRUNHUV$WZHHNO\IRUHPDQPHHWLQJVPDNH FOHDUVXFKKD]DUGVDVWKH\SHUWDLQWRWKHFXUUHQWZRUNDFWLYLW\ 6FKHGXOLQJ x 6WDLUZD\ $SHUPDQHQWVWDLUZD\VKRXOGEHFRQVWUXFWHGDWWKH EHJLQQLQJFRQVWUXFWLRQ R $SHUPDQHQWKDQGUDLOVKRXOGEHHUHFWHGDORQJZLWKWKH VWUXFWXUDOVWHHODVRQHDVVHPEO\ )LUH+D]DUGV R x R R $QXQGHUJURXQG¿UHZDWHUV\VWHPVKRXOGEHLQVWDOOHGDWWKH EHJLQQLQJRIWKHSURMHFW $¿UHSURWHFWLRQV\VWHPSHUPDQHQWHPHUJHQF\H[LWVLJQDJH ¿UHZDOOVDQG¿UHGRRUVVKRXOGEHLQVWDOOHGDVHDUO\DV +HDOWKDQG6DIHW\ SRVVLEOH R 'XULQJGHPRDQGDEDWHPHQW¿UHZDOOVDQG¿UHGRRUVVKRXOG EHNHSWLQSODFHDVORQJDVSRVVLEOH x (OHFWULFDO R 6RXUFHVRISHUPDQHQWSRZHUDQGOLJKWLQJVKRXOGEHLQVWDOOHG HDUO\DQGXVHGGXULQJFRQVWUXFWLRQ x 0HFKDQLFDO R +9$&VKRXOGEHDYDLODEOHIRUFRQWUDFWRUXVHDIWHUEXLOGLQJ FORVHLQ x 0DWHULDOV R 5HTXLUHUHJXODUO\VFKHGXOHGRQVLWHKRXVHNHHSLQJWRHQVXUH DQHDWFOHDUZRUNDUHDIUHHRIKD]DUGV R 0DWHULDOVSLSLQJDQGHTXLSPHQWVKRXOGEHSDLQWHGDQGRU LQVXODWHGSULRUWRHUHFWLRQRULQVWDOODWLRQ x (OHYDWHGZRUN R /LPLWOLIWKHLJKWVRIVWHHOHUHFWLRQDQGFRQFUHWHSRXUV R 3UHIDEULFDWHEXLOGLQJFRPSRQHQWVWRHDVHZRUNDWKLJKHU HOHYDWLRQV R (UHFWSHUPDQHQWOLJKWLQJV\VWHPDORQJZLWKVWUXFWXUDO IUDPLQJDVRQHDVVHPEO\ :RUNHUV x 5HTXLUHDSUHFRQVWUXFWLRQVDIHW\PHHWLQJLQFOXGLQJDOOZRUNHUV RQWKHVLWH x 5HTXLUHDMREVLWHVDIHW\VXUYH\DQGSODQWREHVXEPLWWHGEHIRUH FRQVWUXFWLRQEHJLQV 5HIHUHQFHV ³'HVLJQIRU&RQVWUXFWLRQ6DIHW\7RROER[´3XEOLFDWLRQ &RQVWUXFWLRQ,QGXVWU\,QVWLWXWH&,,$XVWLQ7; 2¶%UHLQ.³%HVW0DQDJHPHQW3UDFWLFHVDQG7RROVIRU-RE6LWH5HF\FOLQJ DQG:DVWH5HGXFWLRQLQ+DZDLL´7KH6WDWHRI+DZDLL ³7KH2ZQHUV5ROHLQ&RQVWUXFWLRQ6DIHW\´5HVHDUFK6XPPDU\ &RQVWUXFWLRQ,QGXVWU\,QVWLWXWH$XVWLQ7; ³6DIHW\3OXV0DNLQJ=HUR$FFLGHQWVD5HDOLW\´5HVHDUFK 6XPPDU\&RQVWUXFWLRQ,QGXVWU\,QVWLWXWH$XVWLQ7; +HDOWKDQG6DIHW\ &KDSWHU+HDOWKDQG6DIHW\ *HQHUDO&RQGLWLRQV *RDO7RLPSURYHWKHTXDOLW\RIOLIHIRUFRQVWUXFWLRQZRUNHUV WKURXJKRXWWKHSURMHFW .H\,VVXHV x x x 3HUVRQDOSURWHFWLYHHTXLSPHQWLVUHTXLUHGE\26+$VWDQGDUGV $ZHOOWUDLQHGZRUNHUZLWKNQRZOHGJHRQVDIHW\WHFKQLTXHVDQG KD]DUGRXVPDWHULDOVKDVWKHSRWHQWLDOWRVDYHOLYHVLQFOXGLQJKLV RZQ 3URSHUVFKHGXOLQJFDQKHOSWRLPSURYHWKHTXDOLW\RIKHDOWKRQD MREVLWH $FWLRQVDQG0HWKRGV &RQWUDFW5HTXLUHPHQWV x (VWDEOLVKPLQLPXPOHYHOVRI9RODWLOH2UJDQLF&RPSRXQG92& HPLVVLRQVIRUVWDQGDUGSURGXFWV5HIHUHQFH/(('5HIHUHQFH 0DQXDOIRUDFFHSWDEOH92&OHYHOV x 5HTXLUHVDIHW\DQGZRUNHUKHDOWKDZDUHQHVVKLJKOLJKWLQJ,QGRRU $LU4XDOLW\,$4DQGZRUNHUKHDOWKRQVLWHE\UHTXLULQJHDFK LQGLYLGXDOWRFRPSOHWHDWHVWEHIRUHVWHSSLQJRQWRWKHVLWH x 5HTXLUHSURSHUSHUVRQDOSURWHFWLYHHTXLSPHQWLQFOXGLQJD KDUGKDWJRJJOHVRUVDIHW\JODVVHVUHVSLUDWRUVZKHQQHFHVVDU\ DFRWWRQVKLUWZLWKORQJVOHHYHVOHDWKHURUKHDWUHVLVWDQWJORYHV ORQJSDQWVZLWKQRFXIIVQRQVNLGVKRHVRUERRWVZLWKVL[LQFK OHDWKHUXSSHUV &RQWUDFWRU3URYLVLRQV x 3URYLGHWKHFRQWUDFWRUZLWKDOLVWRIWR[LFVXEVWDQFHVDQGRWKHU KD]DUGRXVPDWHULDOVRQVLWH x 3URYLGHDOLVWRIWR[LFRUKDUPIXOVXEVWDQFHVZKLFKWKHFRQWUDFWRU VKRXOGDYRLG x 3URYLGHKDQGZDVKLQJVWDWLRQVLQHDWLQJDUHDVVRWKDWZRUNHUV FDQZDVKWKHLUKDQGVEHIRUHWKH\HDWDQGDIWHUXVLQJWKH UHVWURRP x 6FKHGXOHDFWLYLWLHVVXFKDVSDLQWLQJFDUSHWUHPRYDORU LQVWDOODWLRQDWWLPHVWKDWDOORZIRUDGHTXDWHYHQWLODWLRQIRU +HDOWKDQG6DIHW\ x x x ZRUNHUV 3URYLGHDGHTXDWHOLJKWLQJIRUZRUNHUVDWDOOWLPHV .HHSWKHVLWHFOHDQDQGFOHDURIGHEULV 0LQLPL]HQLJKWZRUNDQGDYRLGZRUNRQ)ULGD\RU6DWXUGD\ QLJKWV 3(15(1&3UDFWLFH *RRG+RXVHNHHSLQJRQWKH3HQWDJRQ5HQRYDWLRQ:HGJH :LWKVOLJKWPRGL¿FDWLRQVDFOHDQ VDIHVLWHFDQEHFRPHD³ZDVWH EXVWLQJ´VLWH7KHHIIHFWLYHXVH RIVLJQDJHHGXFDWLRQDWZHHNO\ PHHWLQJVDQGLQFHQWLYHVWR HQFRXUDJHVDIHSUDFWLFHVLV FRPPRQDPRQJVDIHW\SURJUDPV DQGVKRXOGEHH[WHQGHGWR LQFOXGHVXVWDLQDELOLW\DQG KD]DUGRXVVXEVWDQFHLVVXHV 6LWHVDGMDFHQWWRWKHZRUN DUHDVPXVWDOVREHFRQVLGHUHG /D\GRZQDUHDVGXVWPLWLJDWLRQ IXPHPLWLJDWLRQDQGGLUWIURP H[FDYDWLRQDUHFRPPRQSUREOHPVWKDWUHTXLUHFRQVWDQWDWWHQWLRQ 5HIHUHQFHV ³'HVLJQIRU&RQVWUXFWLRQ6DIHW\7RROER[´3XEOLFDWLRQ &RQVWUXFWLRQ,QGXVWU\,QVWLWXWH&,,$XVWLQ7; 2¶%UHLQ.³%HVW0DQDJHPHQW3UDFWLFHVDQG7RROVIRU-RE6LWH5HF\FOLQJ DQG:DVWH5HGXFWLRQLQ+DZDLL´7KH6WDWHRI+DZDLL +HDOWKDQG6DIHW\ &KDSWHU+HDOWKDQG6DIHW\ 'HPROLWLRQDQG$EDWHPHQW *RDO7RLPSURYHWKHTXDOLW\RIOLIHIRUFRQVWUXFWLRQZRUNHUVGXULQJ GHPROLWLRQDQGDEDWHPHQW .H\,VVXHV $VEHVWRV)DFWV x $VEHVWRVLVDQDWXUDOPLQHUDO¿EHUNQRZQIRULWVVWUHQJWKDQG DELOLW\WRUHVLVW¿UH,WLVDOVRXVHGLQWKHUPDOLQVXODWLRQDQG¿UH SURR¿QJ x :KHQ¿EHUVHQWHUWKHOXQJVWKH\EHFRPHORGJHGDQGFDXVH VKRUWQHVVRIEUHDWKDQGOHDGVWROXQJFDQFHUDQGPHVRWKHOLRPD x )RXQGLQPDQ\PDWHULDOVLQFOXGLQJ R $VEHVWRVFHPHQWFDQEHXVHGLQURR¿QJDQGVLGLQJVKLQJOHV R ,QVXODWLRQLQEXLOGLQJVEXLOWEHWZHHQ R 7H[WXUHGSDLQWDQGSDWFKLQJFRPSRXQGVEHIRUH R :DOOVDQGÀRRUVDURXQGZRRGEXUQLQJVWRYHV R 9LQ\OÀRRUWLOHVDQGDGKHVLYHV R +RWZDWHUDQGVWHDPSLSHVLQROGHUEXLOGLQJV R ,QVXODWLRQLQRLODQGFRDOIXUQDFHVDQGGRRUJDVNHWV R 6WRYHWRSSDGV /HDG%DVHG3DLQW)DFWV x /HDGSRLVRQLQJPD\RFFXULQZRUNHUVGXULQJDEUDVLYHEODVWLQJ VDQGLQJFXWWLQJEXUQLQJRUZHOGLQJRIEULGJHVDQGRWKHUVWHHO VWUXFWXUHVFRDWHGZLWKOHDGFRQWDLQLQJSDLQWV1,26+ x +LJKULVNZRUNHUVLQFOXGHDEUDVLYHEODVWHUVLQVSHFWRUVLURQ ZRUNHUVSDLQWHUVODERUHUVKRPHFRQWUDFWRUV x +HDOWK,VVXHVLQFOXGH R 'HFUHDVHGLQWHOOLJHQFHDQGPHQWDOUHWDUGDWLRQ R +\SHUDFWLYLW\ +HDULQJEHKDYLRUDODQGOHDUQLQJSUREOHPV R 3RRUDSSHWLWHVVWRPDFKDFKHVYRPLWLQJFRQVWLSDWLRQ FUDQNLQHVVHQHUJ\ORVVKHDGDFKHVDQGVOHHSOHVVQHVV /HDGLVIRXQGLQPDQ\PDWHULDOVLQFOXGLQJ R +RXVHKROGGXVWIURPSHHOLQJFKLSSLQJDQGFKDONLQJRISDLQW R x +HDOWKDQG6DIHW\ R 6RLOVDQGGULQNLQJZDWHU $FWLRQVDQG0HWKRGV x x x (QFDVHPHQWLVDQHZDOWHUQDWLYHWRWKHUHPRYDORIDVEHVWRVDQG OHDGEDVHGPDWHULDOV,WLVDZDWHUSURRISURWHFWLYHFRDWLQJWKDW LVDSSOLHGGLUHFWO\RYHUKD]DUGRXVPDWHULDOVVHDOLQJWKHPDWHULDO IRUDPLQLPXPRI\HDUV (QFDVHPHQWLVW\SLFDOO\FKHDSHUWKDQUHPRYDODQG UHTXLUHVOHVVWLPHWRDSSO\ ,QGRRUDLUTXDOLW\LVLPSURYHGEHFDXVHWKHKD]DUGRXVPDWHULDOV DUHQRWGLVWXUEHGDQGUHOHDVHGLQWRWKHDLU &DVH6WXG\ )RUW'UXP$UP\%DVH$VEHVWRV(QFDVHPHQW 2I¿FHDQGKDOOZD\VÀRRUVDWWKHEDVHFRQVLVWHGRIEDGO\ZRUQDQG PLVVLQJYLQ\ODVEHVWRVWLOH9$77KH9$7ZDVHQFDVHGLQDVHDPOHVV PRQROLWKLFZDWHUSURRIPHPEUDQHWKDWGULHGLQVHFRQGV$OOIXUQLWXUH DQGHTXLSPHQWZDVUHLQVWDOOHGDQGDOOZRUNHUVZHUHEDFNDWWKHLU ZRUNVWDWLRQVWKDWVDPHDIWHUQRRQ %HQH¿WVLQFOXGHG x /RQJODVWLQJVROXWLRQV x 0LQLPXPGRZQWLPH x &RVWHIIHFWLYH 5HIHUHQFHV ³&RVW(IIHFWLYH,QGRRU$LU4XDOLW\6ROXWLRQV´*OREDO(QFDVHPHQW ,QFKWWSHQFDVHPHQWFRP ³'HVLJQIRU&RQVWUXFWLRQ6DIHW\7RROER[´3XEOLFDWLRQ &RQVWUXFWLRQ,QGXVWU\,QVWLWXWH&,,$XVWLQ7; .XSHFNL1³,V<RXU,QGRRU$LU0DNLQJ<RX6LFN"´$,5%5$,16 KWWSDLUEUDLQVRUJ +HDOWKDQG6DIHW\ &KDSWHU+HDOWKDQG6DIHW\ 6LWH:RUN *RDO7RLPSURYHWKHTXDOLW\RIOLIHIRUFRQVWUXFWLRQZRUNHUVGXULQJ VLWHZRUN .H\,VVXHV x x (DUWKZRUNGDQJHUVLQFOXGHIDOOLQJREMHFWVDQGFROODSVHV ([SRVXUHWRDVSKDOWFDQOHDGWRIDWLJXHUHGXFHGDSSHWLWHH\H QRVHWKURDWDQGVNLQLUULWDWLRQQDXVHDGURZVLQHVVFRXJKLQJ VKRUWQHVVRIEUHDWKDQGDQLQFUHDVHGULVNRIOXQJFDQFHU $FWLRQVDQG0HWKRGV (DUWKZRUN x (UHFWURFNIHQFHVRQHPEDQNPHQWVWRDYRLGIDOOLQJURFNVDQG SUHYHQWIXUWKHUVLWHLPSDFW x 0LQLPL]HWKHDPRXQWRIH[FDYDWLRQLQEDFN¿OOVRURWKHUORRVHVRLO DUHDV x 3URYLGHURDGDFFHVVWRODUJHGHHSH[FDYDWLRQV x /RFDWHXQGHUJURXQGXWLOLWLHVSULRUWRH[FDYDWLRQDQGKDQG H[FDYDWHZKHQQHDUXQGHUJURXQGXWLOLWLHV $VSKDOW3DYLQJ x 1RWLI\EXLOGLQJRFFXSDQWVEHIRUHEHJLQQLQJ x 6FKHGXOHZRUNGXULQJRIIKRXUV x 8VHSHUVRQDOSURWHFWLYHHTXLSPHQWLQFOXGLQJDKDUGKDWJRJJOHV RUVDIHW\JODVVHVUHVSLUDWRUVZKHQQHFHVVDU\DFRWWRQVKLUWZLWK ORQJVOHHYHVOHDWKHURUKHDWUHVLVWDQWJORYHVORQJSDQWVZLWKQR FXIIVQRQVNLGVKRHVRUERRWVZLWKVL[LQFKOHDWKHUXSSHUV x 3URYLGHZDUQLQJWDSHDQGVLJQVWUDI¿FFRQHVHWFWRZDUQWKH SXEOLFRISDYLQJRSHUDWLRQV x 3UHFKRSDVSKDOWLQWRSLHFHVWKDWFDQEHHDVLO\KDQGOHGDQG PHOWHG x &RQVLGHUXVLQJIXPHVXSSUHVVLQJDVSKDOWV +HDOWKDQG6DIHW\ 5HIHUHQFHV ³'HVLJQIRU&RQVWUXFWLRQ6DIHW\7RROER[´3XEOLFDWLRQ &RQVWUXFWLRQ,QGXVWU\,QVWLWXWH&,,$XVWLQ7; ³+HDOWK(IIHFWVRI2FFXSDWLRQDO([SRVXUHWR$VSKDOW´1DWLRQDO ,QVWLWXWHIRU2FFXSDWLRQDO6DIHW\DQG+HDOWK1,26+KWWSZZZFGF JRYQLRVKSGIVSGI ³3XEOLFDWLRQ1R´1DWLRQDO,QVWLWXWHIRU2FFXSDWLRQDO 6DIHW\DQG+HDOWK +HDOWKDQG6DIHW\ &KDSWHU+HDOWKDQG6DIHW\ )RXQGDWLRQV *RDO7RLPSURYHWKHTXDOLW\RIOLIHIRUFRQVWUXFWLRQZRUNHUVZKLOH FRQVWUXFWLQJIRXQGDWLRQV .H\,VVXHV x x x $OOH[FDYDWLRQVDUHKD]DUGRXVGXHWRWKHLULQVWDELOLW\ ([FDYDWHGPDWHULDODWWKHVLWHVSRLOVFDQEHSRWHQWLDOO\ GDQJHURXVHVSHFLDOO\LIORFDWHGWRRQHDUDWUHQFKRUH[FDYDWLRQ (QVXUHSURSHUDFFHVVDQGHJUHVVIURPH[FDYDWLRQV $FWLRQVDQG0HWKRGV ([FDYDWLRQ x (YDOXDWHVRLOFRQGLWLRQVGDLO\WRVHOHFWDSSURSULDWHSURWHFWLYH V\VWHPV x 3ODQDKHDG±FRQWDFWXWLOLWLHVWRORFDWHXQGHUJURXQGOLQHV GHYHORSDSODQIRUWUDI¿FFRQWUROHWF x 7HVWUHJXODUO\IRUORZR[\JHQKD]DUGRXVIXPHVDQGWR[LFJDVHV VXFKDVUDGRQRUFDUERQPRQR[LGHIURPH[KDXVW x 3URYLGHVDIHDFFHVVLQWRDQGRXWRIWKHH[FDYDWLRQ x .HHSH[FDYDWLRQVRSHQIRUDPLQLPDOWLPH x ,QVSHFWSURWHFWLYHV\VWHPVGDLO\IRUHYLGHQFHRISRVVLEOHFDYH LQVKD]DUGRXVDWPRVSKHUHVIDLOXUHRISURWHFWLYHV\VWHPVRU RWKHUXQVDIHFRQGLWLRQV 6SRLO3ODFHPHQW x 6HWVSRLOVDQGHTXLSPHQWDWOHDVWWZRIHHWEDFNIURPWKH H[FDYDWLRQ x 8VHUHWDLQLQJGHYLFHVVXFKDVDWUHQFKER[WRSUHYHQW HTXLSPHQWDQGVSRLOVIURPIDOOLQJLQWRWKHH[FDYDWLRQ x +DXOVSRLOVWRDQRWKHUORFDWLRQLIWZRIRRWVHWEDFNLVQRWSRVVLEOH $YRLGLQJ([FDYDWLRQ+D]DUGV x 3URYLGHVWDLUZD\VODGGHUVUDPSVRURWKHUVDIHPHDQVRIDQ HJUHVVLQDOOWUHQFKHVPRUHWKDQIRXUIHHWGHHS x 3RVLWLRQPHDQVRIHJUHVVZLWKLQODWHUDOIHHWRIZRUNHUV x 3URYLGHUDPSVRIXQLIRUPWKLFNQHVVDQGFRQQHFWLRQVWKDWSUHYHQW GLVSODFHPHQW +HDOWKDQG6DIHW\ x 8VHQRQVOLSVXUIDFHVRQUDPSVDQGVWDLUV &DVH6WXG\ 6DIHW\LQWKH7UHQFKHV 26+$¶VH[FDYDWRQVWDQGDUGUHTXLUHVHPSOR\HUVWRSURYLGHVORSLQJ EHQFKLQJRUVKLHOGLQJWRSURWHFWZRUNHUVLQH[FDYDWLRQ¿YHIHHWRU GHHSHU $\HDUROGFRQVWUXFWLRQZRUNHUZDVGLJJLQJD WUHQFKIRUDQHZVHZHUOLQHZKHQWKHZDOOVRIWKH IRRWGHHSH[FDYDWLRQFROODSVHGDURXQGKLP EXU\LQJKLPXQGHUPRXQGVRIFOD\DQGGLUW2QO\ KLVKDQGH[WHQGHGDERYHWKHGLUWVLJQDOLQJKLV FRZRUNHUVZKHUHKHZDVDVWKH\UXVKHGWRWKH VFHQHWRGLJKLPRXWXVLQJWKHLUKDQGVDQGKDQG VKRYHOV)RUW\¿YHPLQXWHVODWHUDFXWDQGEUXLVHG EXWIXOO\FRQVFLRXVZRUNHUVWHSSHGIURPWKHKROH VXUYLYLQJZKDWPLJKWKDYHEHFRPHDIDWDODFFLGHQW 0DQ\ZRUNHUVDUHQ¶WVROXFN\ 'RQQD0LOHVH/&26+ 7KLVFRXOGKDYHEHHQSUHYHQWHGLISURSHUVHWEDFNVRUDWUHQFKER[ZDV XVHG 6DIHH[FDYDWLRQWHFKQRORJ\GHYLFHVSURYLGHUHDOWLPHZDUQLQJRIWKH XWLOLW\OLQHVLPPHGLDWHO\DKHDGRIWKHGLJJLQJWRRO7KHGDWDFDQEHHDVLO\ LQWHUSUHWHGYLDUHDOWLPHFRPSXWHUUHDGRXWRIWKHGHSWKORFDWLRQDQG VL]HRIWKHEXULHGPHWDOREMHFWV 5HIHUHQFHV ³'HVLJQIRU&RQVWUXFWLRQ6DIHW\7RROER[´3XEOLFDWLRQ &RQVWUXFWLRQ,QGXVWU\,QVWLWXWH&,,$XVWLQ7; ³3UHYHQWLQJ'HDWKVDQG,QMXULHVIURP([FDYDWLRQ&DYH,QV1,26+$OHUW´ 3XEOLFDWLRQ1R1DWLRQDO,QVWLWXWHIRU2FFXSDWLRQDO6DIHW\ DQG+HDOWK ³3UHYHQWLQJ)DWDOLWLHV´26+$&RQVWUXFWLRQH7RROVKWWSZZZRVKDJRY 6/7&HWRROVFRQVWUXFWLRQLQGH[KWPO ³6DIH([FDYDWLRQ´&RQVWUXFWLRQ,QGXVWU\,QVWLWXWHKWWSZZZQHZ WHFKQRORJLHVRUJ(&7&LYLOVDIHH[FDKWP ³6DIHW\,Q7UHQFKHV´H/&26+(OHFWURQLF/LEUDU\RI &RQVWUXFWLRQ2FFXSDWLRQDO6DIHW\DQG+HDOWKKWWSZZZFGFJRYHOFRVK GRFVGGGKWPO 7KH6FLHQFHRI0DNLQJ%HOPRQW6DIH/$:HHNO\ +HDOWKDQG6DIHW\ &KDSWHU+HDOWKDQG6DIHW\ 6XEVWUXFWXUH *RDO7RLPSURYHWKHTXDOLW\RIOLIHIRUFRQVWUXFWLRQZRUNHUVZKLOH FRQVWUXFWLQJWKHVXEVWUXFWXUH .H\,VVXHV x x x 7KHWUHPHQGRXVORDGVWKDWQHHGWREHVXSSRUWHGSRVHDKLJK ULVNWRZRUNHUVHVSHFLDOO\ZKHQMDFNVRUOLIWLQJHTXLSPHQWDUH XVHGWRSRVLWLRQVODEVDQGZDOOVRUZKHQVKRULQJLVUHTXLUHGXQWLO VWUXFWXUHVVXSSRUWWKHPVHOYHV )DOOVDUHWKHOHDGLQJFDXVHRIIDWDOLWLHVLQFRQVWUXFWLRQ ,PSURSHUVFDIIROGLQJFRQVWUXFWLRQOHDGVWRZRUNHULQMXU\ $FWLRQVDQG0HWKRGV x 'RQRWSODFHORDGVRQDFRQFUHWHVWUXFWXUHXQWLOLWLVWHVWHGIRU VWXUGLQHVVDQGFHUWL¿HGE\DSURIHVVLRQDO x 8VHDSSURSULDWHVKRULQJDQGEUDFLQJXQWLOSHUPDQHQWVXSSRUWLV WHVWHGIRUVWUHQJWK x 3UHYHQWXQUROOHGZLUHPHVKIURPUHFRLOLQJ x 'RQRWORDGDOLIWLQJGHYLFHEH\RQGFDSDFLW\ x 8VHVXSSOHPHQWDOVXSSRUWGHYLFHVWRVXSSRUWIRUPVLQFDVH OLIWLQJGHYLFHIDLOV 8QSURWHFWHG6LGHV2SHQLQJVDQG2WKHU+D]DUGV x 8VHJXDUGUDLOV\VWHPV±SODFHDIHQFHRUJXDUGUDLODURXQGDQ\ RSHQDUHDV x 6DIHW\QHW±ZKHQZRUNLQJRQDQRSHQMRLVWV\VWHPLQVWDOO VDIHW\QHWVIRUIDOOLQJGHEULVDQGRWKHUREMHFWV x )DOODUUHVWV\VWHPV±XWLOL]HERG\KDUQHVVHVDQGDSSURSULDWH GHYLFHVZKHQZRUNHUVDUHDWKLJKHUHOHYDWLRQV:RUNHUVPXVW EHULJJHGWRSUHYHQWDIUHHIDOORIPRUHWKDQVL[IHHW 6FDIIROGLQJ6DIHW\ x &RQVWUXFWDOOVFDIIROGLQJDFFRUGLQJWRPDQXIDFWXUHU¶VJXLGHOLQHV x 8VHJXDUGUDLOVDQGIDOODUUHVWV\VWHPV +HDOWKDQG6DIHW\ &DVH6WXG\ 26+$5HSRUWV'HDWKV'XHWR&RQVWUXFWLQJ0DVRQU\:DOOV 7KHYLFWLPZDVDPHPEHURIDFUHZWKDWZDVHUHFWLQJWLOWXSZDOOSDQHOV DURXQGWKHSHULPHWHURIWKHVODEÀRRURIDRQHVWRU\ZDUHKRXVH7KH ODVWWKUHHZDOOVODEVZHUHEHLQJKRLVWHGLQWRSODFHZLWKWZRIRRWQ\ORQ ZHEVOLQJVLQDEDVNHWKLWFK:KLOHWKHVHFRQGSDQHOZDVVXVSHQGHG LQSUHSDUDWLRQIRUEHLQJVHWLWWLOWHGLQWKHVOLQJDQGVOLGVOLJKWO\FXWWLQJ WKURXJKRQHVOLQJDQGSDUWLDOO\WKURXJKWKHRWKHU7KHHUHFWLRQFUHZ VFDWWHUHGDVLWGURSSHGEXWWKHYLFWLPVWRSSHGPRPHQWDULO\WRORRNEDFN DVKHÀHGWKHEXLOGLQJ-XVWWKHQWKHXSSHUHGJHRIDSUHYLRXVO\VHW SDQHOZKLFKKDGEHHQGLVORGJHGE\WKHIDOOLQJSDQHOIHOORQKLP+HZDV FUXVKHGDQGNLOOHG 7KLVFRXOGKDYHEHHQSUHYHQWHGZLWKSURSHUDZDUHQHVVRIKD]DUGVRQ VLWH 5HIHUHQFHV ³'HDWKV'XHWR&RQVWUXFWLQJ0DVRQU\:DOOV´2FFXSDWLRQDO6DIHW\DQG +HDOWK$GPLQLVWUDWLRQKWWSZZZRVKDJRY6/7&HWRROVFRQVWUXFWLRQ VWUXFNE\IDWH[VWUXFNKWP ³'HVLJQIRU&RQVWUXFWLRQ6DIHW\7RROER[´3XEOLFDWLRQ &RQVWUXFWLRQ,QGXVWU\,QVWLWXWH&,,$XVWLQ7; +HDOWKDQG6DIHW\ &KDSWHU+HDOWKDQG6DIHW\ 6XSHUVWUXFWXUH *RDO7RLPSURYHWKHTXDOLW\RIOLIHIRUFRQVWUXFWLRQZRUNHUVZKLOH FRQVWUXFWLQJWKHVXSHUVWUXFWXUH .H\,VVXHV x x x 7KHWUHPHQGRXVORDGVWKDWQHHGWREHVXSSRUWHGSRVHDKLJK ULVNWRZRUNHUVHVSHFLDOO\ZKHQMDFNVRUOLIWLQJHTXLSPHQWDUH XVHGWRSRVLWLRQVODEVDQGZDOOVRUZKHQVKRULQJLVUHTXLUHGXQWLO VWUXFWXUHVVXSSRUWWKHPVHOYHV )DOOVDUHWKHOHDGLQJFDXVHRIIDWDOLWLHVLQFRQVWUXFWLRQ ,PSURSHUVFDIIROGLQJFRQVWUXFWLRQOHDGVWRZRUNHULQMXU\ $FWLRQVDQG0HWKRGV &RQFUHWHDQG0DVRQU\:DOO&RQVWUXFWLRQ x 'RQRWSODFHORDGVRQDFRQFUHWHVWUXFWXUHXQWLOLWLVWHVWHGDQG FHUWL¿HGE\DSURIHVVLRQDO x 8VHDSSURSULDWHVKRULQJDQGEUDFLQJXQWLOSHUPDQHQWVXSSRUWLV WHVWHGIRUVWUHQJWK x 3UHYHQWXQUROOHGZLUHPHVKIURPUHFRLOLQJ x 'RQRWORDGOLIWLQJGHYLFHEH\RQGFDSDFLW\ x 8VHVXSSOHPHQWDOVXSSRUWGHYLFHVWRVXSSRUWIRUPVLQFDVH OLIWLQJGHYLFHIDLOV 3URSHU6FDIIROGLQJ&RQVWUXFWLRQ x &RQVWUXFWVFDIIROGLQJDFFRUGLQJWRPDQXIDFWXUHU¶VLQVWUXFWLRQV x 8VHJXDUGUDLOVDQGIDOODUUHVWV\VWHPV 8QSURWHFWHG6LGHV2SHQLQJVDQG2WKHU+D]DUGV x 8VHJXDUGUDLOV\VWHPVSODFHDIHQFHRUJXDUGUDLODURXQGDQ\ RSHQDUHDV x 6DIHW\QHWZKHQZRUNLQJRQDQRSHQMRLVWV\VWHPLQVWDOOVDIHW\ QHWVWRSUHYHQWIDOOLQJREMHFWV x )DOODUUHVWV\VWHPVXWLOL]HERG\KDUQHVVHVDQGDSSURSULDWH GHYLFHVZKHQZRUNHUVDUHDWKLJKHUHOHYDWLRQVZRUNHUVVKRXOG EHULJJHGDVWRQRWIUHHIDOOIXUWKHUWKDQVL[IHHW x )ROORZDOORIWKHVDIHW\UHTXLUHPHQWVRI26+$6XESDUW5IRU +HDOWKDQG6DIHW\ VWUXFWXUDOVWHHOHUHFWLRQ &DVH6WXG\ 26+$5HSRUW'HDWKV'XHWR6WHHO(UHFWLRQ 7ZRFRQQHFWRUVZHUHHUHFWLQJOLJKWZHLJKWVWHHO,EHDPVRQWKHWKLUG ÀRRURIDVWRU\EXLOGLQJIHHWDERYHWKHJURXQG2QHHPSOR\HH UHPRYHGDFKRNHUVOLQJIURPDEHDPDQGWKHQDWWHPSWHGWRSODFHWKH VOLQJRQWRDORZHUKRRNRQDVHULHVRIVWULQJHUV:KLOHWKHFUDZOHUWRZHU FUDQHZDVERRPLQJDZD\IURPWKHVWHHOWKHZLQGPRYHGWKHVWULQJHU LQWRWKHEHDPWKHHPSOR\HHZDVVWDQGLQJRQ7KHEHDPPRYHGZKLOH WKHHPSOR\HHZDVWU\LQJWRGLVHQJDJHWKHKRRNFDXVLQJKLPWRORVHKLV EDODQFHDQGIDOOWRKLVGHDWK 7KLVFRXOGKDYHEHHQSUHYHQWHGZLWKDSURSHUIDOOSURWHFWLRQSURFHGXUH DQGWUDLQLQJ 5HIHUHQFHV ³'HDWKV'XHWR6WHHO(UHFWLRQ´2FFXSDWLRQDO6DIHW\DQG+HDOWK $GPLQLVWUDWLRQ ³'HVLJQIRU&RQVWUXFWLRQ6DIHW\7RROER[´3XEOLFDWLRQ &RQVWUXFWLRQ,QGXVWU\,QVWLWXWH&,,$XVWLQ7; +HDOWKDQG6DIHW\ &KDSWHU+HDOWKDQG6DIHW\ ([WHULRU(QFORVXUH *RDO7RLPSURYHWKHTXDOLW\RIOLIHIRUFRQVWUXFWLRQZRUNHUVZKLOH HQFORVLQJWKHEXLOGLQJ .H\,VVXHV x x x /DGGHUVFDQFDXVHLQMXULHVUDQJLQJIURPVSUDLQVWRGHDWK 6FDIIROGLQJSRVHVVHULRXVULVNVZLWKRXWSURSHUIDOOSURWHFWLRQ 0ROGLVKLJKO\VXVFHSWLEOHLQPRLVWRUGDPSDUHDV $FWLRQVDQG0HWKRGV /DGGHUV x %HVXUHWKDWODGGHUVDUHVDIHO\SRVLWLRQHGEHIRUHXVH x ,QVSHFWODGGHUVIRUEURNHQRUFUDFNHGSDUWV x 6HFXUHVLGHUDLOVDWWKHWRSRIWKHODGGHUWRDULJLGVXSSRUW x $OZD\VKDYHWKUHHSRLQWVRIFRQWDFWZLWKWKHODGGHU x $GKHUHWRZHLJKWUHVWULFWLRQV 6FDIIROGLQJ x &RQVWUXFWVFDIIROGLQJDFFRUGLQJWRPDQXIDFWXUHU¶VJXLGHOLQHV x ,QVWDOODOOJXDUGUDLOVRQRSHQVLGHVDQGXWLOL]HIDOODUUHVWV\VWHPV ZKHQQHFHVVDU\ x 'RQRWFOLPEFURVVEUDFLQJ 0ROG0RLVWXUH3URWHFWLRQ x &KHFNIRUSURSHULQVWDOODWLRQDQGFRQQHFWLRQRIPDWHULDOV x &KHFNIRUOHDNVUHSDLUDOOWHDUVRUSXQFWXUHVLQYDSRUEDUULHUV x &KHFNFDXONLQJDQGÀDVKLQJIRUSURSHULQVWDOODWLRQ &RPPRQ+HDOWK(IIHFWVRI0ROG x ,I\RXRURWKHUVDURXQG\RXDUHH[SHULHQFLQJDQ\RIWKHIROORZLQJ V\PSWRPVFRQWDFW\RXU6DIHW\0DQDJHULPPHGLDWHO\ R R R ,UULWDWLRQRIVNLQH\HVQRVHWKURDWFDXVLQJDOOHUJ\OLNH V\PSWRPV 'LI¿FXOW\EUHDWKLQJUXQQ\QRVHZDWHU\H\HV )DWLJXHRUKHDGDFKH +HDOWKDQG6DIHW\ R R $VWKPDWLFDWWDFNVIRUDOOHUJLFLQGLYLGXDOV %XUQLQJLQQRVHQRVHEOHHGVZHDNHQHGLPPXQHV\VWHP &DVH6WXG\ $XVWUDOLDQ%ULFNOD\HUV$FFLGHQW $EULFNOD\HUZDVZRUNLQJDORQHRQWKHURRIRIDQHZVL[VWRU\EXLOGLQJ +HKDGaOEVRIEULFNVOHIWRYHUDQGGHFLGHGWRULJXSDSXOOH\V\VWHP XVLQJDEDUUHOWRORZHUWKHEULFNVWRWKHJURXQG7KHEULFNOD\HUZHLJKHG OEV$VKHDWWHPSWHGWRORZHUWKHOEEXFNHWRIEULFNVWRWKH JURXQGKHZDVVXGGHQO\MHUNHGRIIWKHJURXQGDQGIRUJRWWROHWJRRI WKHURSH+HSURFHHGHGDWDUDSLGUDWHXSWKHVLGHRIWKHEXLOGLQJDQG PHWWKHEDUUHORQWKHWKLUGÀRRUIUDFWXUHGKLVVNXOODQGEURNHKLVFROODU ERQH6ORZHGRQO\VOLJKWO\KHFRQWLQXHGKLVUDSLGDVFHQWQRWVWRSSLQJ XQWLOWKH¿QJHUVZHUHGHHSLQWRWKHSXOOH\7KHEDUUHORIEULFNVKLWWKH JURXQGDQGWKHERWWRPIHOORXWRIWKHEDUUHO1RZWKHEDUUHOZHLJKHG OEDQGKHVWLOOZHLJKHGOEVVRKHEHJDQDUDSLGGHFHQWGRZQWKH VLGHRIWKHEXLOGLQJ$JDLQRQWKHWKLUGÀRRUKHPHWWKHEDUUHOFRPLQJXS DQGIUDFWXUHGERWKDQNOHVDQGEURNHDIHZWHHWK7KHHQFRXQWHUZLWKWKH EDUUHOVORZHGKLPHQRXJKWROHVVRQKLVLQMXULHVZKHQKHIHOOLQWRWKHSLOH RIEULFNVZKHUHKHFUDFNHGRQO\WKUHHYHUWHEUDH7KHQKHOHWJRRIWKH URSHDQGWKHHPSW\EDUUHOEHJDQLWVMRXUQH\EDFNGRZQEUHDNLQJERWKRI KLVOHJV 5HIHUHQFHV ³'HVLJQIRU&RQVWUXFWLRQ6DIHW\7RROER[´3XEOLFDWLRQ &RQVWUXFWLRQ,QGXVWU\,QVWLWXWH&,,$XVWLQ7; ³)DOOV,PSURSHU6FDIIROG&RQVWUXFWLRQ´2FFXSDWLRQDO6DIHW\DQG+HDOWK $GPLQLVWUDWLRQZZZRVKDJRY6/7&HWRROVFRQVWUXFWLRQIDOOVLPSURSHUB VFDIIROGVKWPO ³)DOOV0LVXVHRI3RUWDEOH/DGGHUV´2FFXSDWLRQDO6DIHW\DQG+HDOWK $GPLQLVWUDWLRQKWWSZZZRVKDJRY6/7&HWRROVFRQVWUXFWLRQIDOOV ODGGHUVKWPO *DUYH\'0ROGLQ&RQVWUXFWLRQ&RQVWUXFWLRQ6DIHW\&RXQFLO¶V WK$QQXDO&RQVWUXFWLRQ6DIHW\+HDOWK&RQIHUHQFH([SRVLWLRQ 5RVHPRQW,OOLQRLVKWWSZZZFGFJRYHOFRVKGRFVGG GKWPO 0ROGLQ&RQVWUXFWLRQ&KHFNOLVW&RQVWUXFWLRQ6DIHW\&RXQFLOV¶ WK$QQXDO&RQVWUXFWLRQ6DIHW\+HDOWK&RQIHUHQFH([SRVLWLRQ 5RVHPRQW,OOLQRLVKWWSZZZFGFJRYHOFRVKGRFVGG GKWPO 6DKDL'³0RXOGV&RQWUROOLQJ([SRVXUHLV(VVHQWLDO´ &RQVWUXFWLRQ6DIHW\0DJD]LQHKWWSZZZFGFJRYHOFRVKGRFV GGGKWPO +HDOWKDQG6DIHW\ &KDSWHU+HDOWKDQG6DIHW\ 5RR¿QJ *RDO7RLPSURYHWKHTXDOLW\RIOLIHIRUFRQVWUXFWLRQZRUNHUVZKLOH LQVWDOOLQJURR¿QJ .H\,VVXHV x x x $VSKDOWIXPHVSRVHQXPHURXVDGYHUVHKHDOWKHIIHFWVLQFOXGLQJ R +HDGDFKH R (\HQRVHWKURDWDQGVNLQLUULWDWLRQZKLFKFDQOHDGWR FRXJKLQJZKHH]LQJRUVKRUWQHVVRIEUHDWK R 1DXVHDIDWLJXHDQGGURZVLQHVV R /RQJWHUPH[SRVXUHFDQFDXVHFKDQJHVLQVNLQSLJPHQW ZKLFKFDQEHZRUVHQHGE\VXQOLJKWH[SRVXUH R ,QFUHDVHGULVNRIOXQJFDQFHU ,PSURSHUXVHRIDQDVSKDOWNHWWOHFRXOGUHVXOWLQWLSSLQJDQG H[WUHPHEXUQV 0DWHULDOVGURSSHGIURPWKHURRISRVHDWKUHDWWRSHGHVWULDQV ZDONLQJEHORZ $FWLRQVDQG0HWKRGV 7R,PSURYH+HDOWKDQG6DIHW\'XULQJ5RRI&RQVWUXFWLRQ x 1RWLI\EXLOGLQJRFFXSDQWVSULRUWRFRQVWUXFWLRQE\SRVWLQJKD]DUG DQGZDUQLQJVLJQV x 6FKHGXOHZRUNGXULQJRIIKRXUV x 3URYLGHZDUQLQJWDSHWUDI¿FFRQHVHWFWRDGYLVHWKHSXEOLF 7R3URWHFWDJDLQVW$VSKDOW)XPHV x 8VHSHUVRQDOSURWHFWLYHHTXLSPHQWLQFOXGLQJDKDUGKDWJRJJOHV RUVDIHW\JODVVHVUHVSLUDWRUVZKHQQHFHVVDU\DFRWWRQVKLUWZLWK ORQJVOHHYHVOHDWKHURUKHDWUHVLVWDQWJORYHVORQJSDQWVZLWKQR FXIIVQRQVNLGVKRHVRUERRWVZLWKVL[LQFKOHDWKHUXSSHUV x &RQVLGHUXVLQJDWDQNHUWRVXSSO\DVSKDOWWRWKHNHWWOHRUGLUHFWO\ WRWKHURRIWRS x ,INHWWOHVDUHXVHGSODFHWKHPDWDVDIHGLVWDQFHIURPZRUNHUV DZD\IURPDLULQWDNHVGRRUVDQGZLQGRZV x 3UHFKRSDVSKDOWLQWRSLHFHVWKDWFDQEHHDVLO\KDQGOHGDQG +HDOWKDQG6DIHW\ x x x x x x x PHOWHG 8VHURR¿QJHTXLSPHQWZLWKOLGVWRUHGXFHH[SRVXUHWRIXPHV 6HOHFWDQLQVXODWHGNHWWOHWKDWLVWKHULJKWVL]HIRUWKHMRE 3ODFHWKHNHWWOHRQDQHYHQ¿UPVXUIDFHDQGXVHLQWKHSURSHU RSHUDWLQJFRQGLWLRQV 5HGXFHWKHQXPEHURIWLPHVWKHOLGLVRSHQHG &RQVLGHUXVLQJIXPHVXSSUHVVLQJDVSKDOWV ,I\RXRURWKHUVDUHH[SHULHQFLQJDQ\RIWKHIROORZLQJKHDOWK HIIHFWVFRQWDFW\RXU6DIHW\0DQDJHULPPHGLDWHO\ R +HDGDFKH R (\HQRVHWKURDWDQGVNLQLUULWDWLRQZKLFKFDQOHDGWR FRXJKLQJZKHH]LQJRUVKRUWQHVVRIEUHDWK R 1DXVHDIDWLJXHRUGURZVLQHVV /RQJWHUPH[SRVXUHFDQFDXVHFKDQJHVLQVNLQSLJPHQWZKLFK FDQEHZRUVHQHGE\VXQOLJKWH[SRVXUHDQGLQFUHDVHGULVNRIOXQJ FDQFHU 5HIHUHQFHV ³'HVLJQIRU&RQVWUXFWLRQ6DIHW\7RROER[´3XEOLFDWLRQ &RQVWUXFWLRQ,QGXVWU\,QVWLWXWH&,,$XVWLQ7; ³5HGXFLQJ5RRIHUV¶([SRVXUHWR$VSKDOW)XPHV´3XEOLFDWLRQ1R 1DWLRQDO,QVWLWXWHIRU2FFXSDWLRQDO6DIHW\DQG+HDOWK +HDOWKDQG6DIHW\ &KDSWHU+HDOWKDQG6DIHW\ ,QWHULRU&RQVWUXFWLRQ *RDO7RLPSURYHWKHTXDOLW\RIOLIHIRUFRQVWUXFWLRQZRUNHUVGXULQJ LQWHULRULQVWDOODWLRQ .H\,VVXHV x x 7KHGXVWFUHDWHGIURPVDQGLQJGU\ZDOOFDQFDXVHPDQ\ DGYHUVHKHDOWKHIIHFWVLQFOXGLQJ R (\HQRVHWKURDWDQGUHVSLUDWRU\WUDFWLUULWDWLRQ R /RQJH[SRVXUHFDQFDXVHSHUVLVWHQWWKURDWDQGDLUZD\ LUULWDWLRQFRXJKLQJSKOHJPSURGXFWLRQDQGEUHDWKLQJ GLI¿FXOWLHVVLPLODUWRDVWKPD R 6PRNHUVDQGWKRVHZLWKVLQXVRUUHVSLUDWRU\FRQGLWLRQVDUH DWDKLJKHUULVN R :KHUHVLOLFDLVSUHVHQWWKHUHLVDQLQFUHDVHGULVNRIVLOLFRVLV DQGOXQJFDQFHU :DWHUGDPDJHGRUPRLVWDUHDVDUHKLJKO\VXVFHSWLEOHWRPROG ZKLFKFDQOHDGWRVHULRXVKHDOWKHIIHFWV $FWLRQVDQG0HWKRGV 7R5HGXFH+HDOWKDQG6DIHW\(IIHFWVRI'XVW x 8VHUHVSLUDWRU\SURWHFWLRQZKHQVDQGLQJ x 8VHZHWVDQGLQJZKHQHYHUSRVVLEOH x 9HQWLODWHWKHDUHDWRGHFUHDVHH[SRVXUHWRGXVW x 8VH9DFXXP6DQGLQJ6\VWHPV±OLJKWZHLJKWYDFXXPVWKDW JDWKHUGU\ZDOOGXVW x 8VH3ROH6DQGLQJ±WKLVLQFUHDVHVWKHVSDFHEHWZHHQWKH ZRUNHUDQGWKHVDQGLQJVXUIDFHDQGUHGXFHVH[SRVXUH 7R5HGXFHWKH5LVNRI0ROGLQ3UHFRQVWUXFWLRQ x .HHSLQWHULRUPDWHULDOVGU\SULRUWRGXULQJDQGDIWHULQVWDOODWLRQ x 'RQRWLQVWDOOZHWEXLOGLQJPDWHULDOVDOORZVXI¿FLHQWWLPHWRGU\ RXWFRPSOHWHO\ x 5HSRUWDQ\ZDWHUGDPDJHOHDNVRULQWUXVLRQWRSURMHFWPDQDJHU LPPHGLDWHO\ x %XLOGLQVWULFWFRPSOLDQFHZLWKGHVLJQDQGVSHFL¿FDWLRQV +HDOWKDQG6DIHW\ x $OHUWDUFKLWHFWVRUHQJLQHHUVWRGHVLJQVWKDWPD\DOORZZDWHU LQWUXVLRQRUPRLVWXUHDFFXPXODWLRQ x 4XHVWLRQ³FRQFHSWXDORQO\´LQDGHTXDWHDUFKLWHFWXUDOGHWDLOLQJRU RXWULJKWLPSURSHUEXLOGLQJSODQV 7R5HGXFHWKH5LVNRI0ROGGXULQJ&RQVWUXFWLRQ x &KHFNIRUSURSHULQVWDOODWLRQDQGFRQQHFWLRQRIPDWHULDOVDQG FKHFNIRUOHDNV x 3URSHUO\LQVXODWHZDWHUOLQHVHVSHFLDOO\FKLOOHGZDWHUOLQHV x 5HSDLUDOOWHDUVRUSXQFWXUHVLQYDSRUEDUULHUV x &KHFNFDXONLQJDQGÀDVKLQJIRUSURSHULQVWDOODWLRQ x 9HQWDOOPRLVWXUHJHQHUDWLQJHTXLSPHQWRXWGRRUV x 8WLOL]HGU\LQJHTXLSPHQW±IDQVGHKXPLGL¿HUVZHWGU\YDFXXPV DQG³VXSHUVXFNHU´WUXFNV &RPPRQ+HDOWK(IIHFWVRI0ROG([SRVXUH ,I\RXRURWKHUVDURXQG\RXDUHH[SHULHQFLQJDQ\RIWKHIROORZLQJKHDOWK HIIHFWVFRQWDFW\RXU6DIHW\0DQDJHULPPHGLDWHO\ x ,UULWDWLRQRIVNLQH\HVQRVHDQGWKURDWFDXVLQJDOOHUJ\OLNH V\PSWRPV x 'LI¿FXOW\EUHDWKLQJUXQQ\QRVHZDWHU\H\HV x )DWLJXHDQGKHDGDFKH x $VWKPDWLFDWWDFNVIRUDOOHUJLFLQGLYLGXDOV x %XUQLQJLQQRVHQRVHEOHHGVFRXJKLQJDQGZHDNHQHGLPPXQH V\VWHP 5HIHUHQFHV ³&RQWURORI'U\ZDOO6DQGLQJDQG'XVW([SRVXUH´3XEOLFDWLRQ1R 1DWLRQDO,QVWLWXWHIRU2FFXSDWLRQDO6DIHW\DQG+HDOWK ³'HVLJQIRU&RQVWUXFWLRQ6DIHW\7RROER[´3XEOLFDWLRQ &RQVWUXFWLRQ,QGXVWU\,QVWLWXWH&,,$XVWLQ7; *DUYH\'0ROGLQ&RQVWUXFWLRQ&RQVWUXFWLRQ6DIHW\&RXQFLO¶V WK$QQXDO&RQVWUXFWLRQ6DIHW\+HDOWK&RQIHUHQFH([SRVLWLRQ 5RVHPRQW,OOLQRLVKWWSZZZFGFJRYHOFRVKGRFVGGG KWPO 0ROGLQ&RQVWUXFWLRQ&KHFNOLVW&RQVWUXFWLRQ6DIHW\&RXQFLOV¶ WK$QQXDO&RQVWUXFWLRQ6DIHW\+HDOWK&RQIHUHQFH([SRVLWLRQ 5RVHPRQW,OOLQRLVKWWSZZZFGFJRYHOFRVKGRFVGGG KWPO 6DKDL'³0RXOGV&RQWUROOLQJ([SRVXUHLV(VVHQWLDO´ &RQVWUXFWLRQ6DIHW\0DJD]LQHKWWSZZZFGFJRYHOFRVKGRFVG GGKWPO +HDOWKDQG6DIHW\ &KDSWHU+HDOWKDQG6DIHW\ &RQYH\LQJ6\VWHPV *RDO7RLPSURYHWKHTXDOLW\RIOLIHIRUFRQVWUXFWLRQZRUNHUVZKLOH LQVWDOOLQJFRQYH\LQJV\VWHPV .H\,VVXHV x x /DGGHUVFDQFDXVHLQMXULHVUDQJLQJIURPVSUDLQVWRGHDWK 6FDIIROGLQJSRVHVVHULRXVULVNVZLWKRXWSURSHUIDOOSURWHFWLRQ $FWLRQVDQG0HWKRGV /DGGHUV x %HVXUHWKDWODGGHUVDUHVDIHO\SRVLWLRQHGEHIRUHXVH x ,QVSHFWODGGHUVIRUEURNHQRUFUDFNHGSDUWV x 6HFXUHVLGHUDLOVDWWKHWRSRIWKHODGGHUWRDULJLGVXSSRUW x $OZD\VKDYHWKUHHSRLQWVRIFRQWDFWZLWKWKHODGGHU x $GKHUHWRZHLJKWUHVWULFWLRQV 6FDIIROGLQJ x &RQVWUXFWVFDIIROGLQJDFFRUGLQJWRPDQXIDFWXUHU¶VJXLGHOLQHV x ,QVWDOODOOJXDUGUDLOVRQRSHQVLGHVDQGXWLOL]HIDOODUUHVWV\VWHPV ZKHQQHFHVVDU\ x 'RQRWFOLPEFURVVEUDFLQJ 5HIHUHQFHV ³)DOOV,PSURSHU6FDIIROG&RQVWUXFWLRQ´2FFXSDWLRQDO6DIHW\DQG+HDOWK $GPLQLVWUDWLRQZZZRVKDJRY6/7&HWRROVFRQVWUXFWLRQIDOOVLPSURSHUB VFDIIROGVKWPO ³)DOOV0LVXVHRI3RUWDEOH/DGGHUV´2FFXSDWLRQDO6DIHW\DQG+HDOWK $GPLQLVWUDWLRQKWWSZZZRVKDJRY6/7&HWRROVFRQVWUXFWLRQIDOOV ODGGHUVKWPO +HDOWKDQG6DIHW\ &KDSWHU+HDOWKDQG6DIHW\ 0HFKDQLFDO *RDO7RLPSURYHWKHTXDOLW\RIOLIHIRUFRQVWUXFWLRQZRUNHUVZKLOH LQVWDOOLQJPHFKDQLFDOHTXLSPHQWE\UHGXFLQJWKHULVNRIPROGDQGRWKHU FRQWDPLQDQWV .H\,VVXHV x :DWHUGDPDJHGRUPRLVWDUHDVDUHKLJKO\VXVFHSWLEOHWRPROG ZKLFKFDQOHDGWRVHULRXVKHDWKHIIHFWV $FWLRQVDQG0HWKRGV 7R5HGXFHWKH5LVNRI0ROGLQ3UHFRQVWUXFWLRQ x .HHSLQWHULRUPDWHULDOVGU\SULRUWRGXULQJDQGDIWHULQVWDOODWLRQ x 'RQRWLQVWDOOZHWEXLOGLQJPDWHULDOVDOORZVXI¿FLHQWWLPHWRGU\ RXWFRPSOHWHO\ x 5HSRUWDQ\ZDWHUGDPDJHOHDNVRULQWUXVLRQWRSURMHFWPDQDJHU LPPHGLDWHO\ x %XLOGLQVWULFWFRPSOLDQFHZLWKGHVLJQDQGVSHFL¿FDWLRQV x $OHUWDUFKLWHFWVRUHQJLQHHUVWRGHVLJQVWKDWPD\DOORZZDWHU LQWUXVLRQRUPRLVWXUHDFFXPXODWLRQ x 4XHVWLRQ³FRQFHSWXDORQO\´LQDGHTXDWHDUFKLWHFWXUDOGHWDLOLQJRU RXWULJKWLPSURSHUEXLOGLQJSODQV 7R5HGXFHWKH5LVNRI0ROGGXULQJ&RQVWUXFWLRQ x &KHFNIRUSURSHULQVWDOODWLRQDQGFRQQHFWLRQRIPDWHULDOVDQG FKHFNIRUOHDNV x 3URSHUO\LQVXODWHZDWHUOLQHVHVSHFLDOO\FKLOOHGZDWHUOLQHV x 5HSDLUDOOWHDUVRUSXQFWXUHVLQYDSRUEDUULHUV x &KHFNFDXONLQJDQGÀDVKLQJIRUSURSHULQVWDOODWLRQ x 9HQWDOOPRLVWXUHJHQHUDWLQJHTXLSPHQWRXWGRRUV x 3URSHUO\YHQWLODWHDWWLFVFUDZOVSDFHVRURWKHUHQFORVHGDUHDV x 8WLOL]HGU\LQJHTXLSPHQW±IDQVGHKXPLGL¿HUVZHWGU\YDFXXPV DQG³VXSHUVXFNHU´WUXFNV +HDOWKDQG6DIHW\ 7R5HGXFHWKH5LVNRI0ROGLQWKH+9$&6\VWHP x 3URSHUO\LQVWDOODSSURSULDWH¿OWHUV x 3URSHUO\GUDLQGULSSDQIRUFRROLQJFRLOV x 'RQRWLQVXODWHLQWHULRUYHQWLODWLRQGXFWVDVWKLVFDQLQFUHDVHWKH SRWHQWLDOIRUPROG x 6HDODOOGXFWMRLQWV x &OHDQDQGFRPPLVVLRQHQWLUH+9$&V\VWHP &RPPRQ+HDOWK(IIHFWVRI0ROG([SRVXUH ,I\RXRURWKHUVDURXQG\RXDUHH[SHULHQFLQJDQ\RIWKHIROORZLQJKHDOWK HIIHFWVFRQWDFW\RXU6DIHW\0DQDJHULPPHGLDWHO\ x ,UULWDWLRQRIVNLQH\HVQRVHWKURDWUHVXOWLQJLQDOOHUJ\OLNH V\PSWRPV x 'LI¿FXOW\EUHDWKLQJUXQQ\QRVHDQGZDWHU\H\HV x )DWLJXHDQGKHDGDFKH x $VWKPDWLFDWWDFNVIRUDOOHUJLFLQGLYLGXDOV x %XUQLQJLQQRVHQRVHEOHHGVFRXJKLQJDQGZHDNHQHGLPPXQH V\VWHP 5HIHUHQFHV ³'HVLJQIRU&RQVWUXFWLRQ6DIHW\7RROER[´3XEOLFDWLRQ &RQVWUXFWLRQ,QGXVWU\,QVWLWXWH&,,$XVWLQ7; *DUYH\'0ROGLQ&RQVWUXFWLRQ&RQVWUXFWLRQ6DIHW\&RXQFLO¶V WK$QQXDO&RQVWUXFWLRQ6DIHW\+HDOWK&RQIHUHQFH([SRVLWLRQ 5RVHPRQW,OOLQRLVKWWSZZZFGFJRYHOFRVKGRFVGG GKWPO 0ROGLQ&RQVWUXFWLRQ&KHFNOLVW&RQVWUXFWLRQ6DIHW\&RXQFLOV¶ WK$QQXDO&RQVWUXFWLRQ6DIHW\+HDOWK&RQIHUHQFH([SRVLWLRQ 5RVHPRQW,OOLQRLVKWWSZZZFGFJRYHOFRVKGRFVGG GKWPO 6DKDL'³0RXOGV&RQWUROOLQJ([SRVXUHLV(VVHQWLDO´ &RQVWUXFWLRQ6DIHW\0DJD]LQHKWWSZZZFGFJRYHOFRVKGRFV GGGKWPO +HDOWKDQG6DIHW\ &KDSWHU+HDOWKDQG6DIHW\ (OHFWULFDO *RDO7RLPSURYHWKHTXDOLW\RIOLIHIRUFRQVWUXFWLRQZRUNHUVZKLOH LQVWDOOLQJHOHFWULFDOV\VWHPV .H\,VVXHV x x x x x 2YHUKHDGDQGEXULHGSRZHUOLQHVSRVHULVNVRIHOHFWULFDOVKRFN WRZRUNHUV ,QVXODWLRQEUHDNVVKRUWFLUFXLWVDQGH[SRVHGZLUHVLQFUHDVHWKH ULVNRIHOHFWULFDOLQMXULHV ,PSURSHUJURXQGLQJFDQFDXVHHOHFWULFDOEXUQVRUGHDWK ,PSURSHUXVHRIHOHFWULFDOHTXLSPHQW :HDUDQGWHDUFDQORRVHQRUH[SRVHZLUHVDQGFUHDWHKD]DUGV $FWLRQVDQG0HWKRGV 2YHUKHDGDQG%XULHG3RZHU/LQH+D]DUGV x /RRNIRUZDUQLQJVLJQV x &RQWDFWXWLOLWLHVIRUWKHORFDWLRQVRIEXULHGSRZHUOLQHV x 'HHQHUJL]HDQGJURXQGOLQHVZKHQZRUNLQJQHDUE\ x 6WD\IHHWIURPRYHUKHDUGSRZHUOLQHV x $VVXPHDOOSRZHUOLQHVDUHHQHUJL]HG x 8VHQRQFRQGXFWLYHZRRGRU¿EHUJODVVODGGHUVZKHQZRUNLQJ QHDUSRZHUOLQHV *URXQG)DXOW+D]DUGV x 8VHJURXQGIDXOWLQWHUUXSWHUV*)&,VRQDOO9VLQJOHSKDVH DQGDPSUHFHSWDFOHV x 8VHGRXEOHLQVXODWHGWRROVDQGHTXLSPHQW x 9LVXDOO\LQVSHFWDOOHOHFWULFDOHTXLSPHQWIRUIUD\HGFRUGV PLVVLQJJURXQGSURQJVFUDFNHGWRROFDVLQJVHWF$SSO\ ZDUQLQJWDJVWRDOOGHIHFWLYHWRROVDQGGRQRWXVHXQWLO SUREOHPLVFRUUHFWHG 8Q*URXQGHGRU'LVFRQWLQXRXV(OHFWULFDO&XUUHQWV x *URXQGDOOSRZHUVXSSO\V\VWHPVHOHFWULFDOFLUFXLWVDQGHOHFWULFDO HTXLSPHQW +HDOWKDQG6DIHW\ x 9LVXDOO\LQVSHFWV\VWHPVEHIRUHXVH x 8VHGRXEOHLQVXODWHGWRROV x *URXQGDOOPHWDOSDUWVRIHTXLSPHQW ,PSURSHU(TXLSPHQW8VH x 8VHRQO\DSSURYHGHTXLSPHQWWKDWPHHWV26+$6WDQGDUG >D@ x 8VHHTXLSPHQWDFFRUGLQJWRPDQXIDFWXUHU¶VLQVWUXFWLRQV26+$ 6WDQGDUG>E@ x 'RQRWPRGLI\FRUGVRUXVHWKHPLQFRUUHFWO\ x %HVXUHHTXLSPHQWWKDWKDVEHHQVKRSIDEULFDWHGRUDOWHUHGLVLQ FRPSOLDQFH ,PSURSHU([WHQVLRQDQG)OH[LEOH&RUG8VH x 8VHIDFWRU\DVVHPEOHGFRUGVHWV x 8VHRQO\H[WHQVLRQFRUGVWKDWDUHZLUHW\SHGHVLJQDWHGIRU KDUGRUH[WUDKDUGXVDJH x 8VHRQO\GHYLFHVDQG¿WWLQJZLWKVWUDLQUHOLHI x 5HPRYHFRUGVIURPUHFHSWDFOHVE\SXOOLQJRQWKHSOXJVQRWWKH FRUGV (OHFWULFLW\+RZLW:RUNV 7KLQNRIHOHFWULFLW\DVZDWHU7XUQLQJRQDVZLWFK LVVLPLODUWRWXUQLQJRQDZDWHUIDXFHW7KHUHLVD UHVHUYRLUZKLFKKROGVWKHHOHFWULFLW\VLPLODUWRDZDWHU UHVHUYRLU$JHQHUDWRUOLNHDZDWHUSXPSSURYLGHV WKHSUHVVXUHIRUWKHHOHFWULFDOFXUUHQWWRWUDYHOWKURXJK WKHFRQGXFWRU6XEVWDQFHVZLWKOLWWOHUHVLVWDQFHWR HOHFWULFLW\ÀRZDUHFDOOHGFRQGXFWRUVHJPHWDOV 6XEVWDQFHVWKDWKDYHDKLJKHUUHVLVWDQFHWRHOHFWULFLW\ ÀRZDUHFDOOHGLQVXODWRUVHJJODVVSODVWLFGU\ ZRRG3XUHZDWHULVDSRRUFRQGXFWRURIHOHFWULFLW\ KRZHYHUVPDOOLPSXULWLHVLQWKHZDWHULQFUHDVHLWVFRQGXFWLYLW\)RUWKLV UHDVRQZDWHUZHWZRRGDQGGDPSHQHGKXPDQVNLQFDQEHDFRQGXFWRU IRUHOHFWULFLW\ 26+$ KWWSZZZRVKDJRY6/7&HWRROVFRQVWUXFWLRQHOHFWULFDOBLQFLGHQWVHOHFZRUNVKWPO 5HIHUHQFHV ³(OHFWULFDO,QFLGHQWV´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x H7RROVLQWHUDFWLYHZHEEDVHGWUDLQLQJWRROVRQVDIHW\DQG KHDOWKWRSLFV8WLOL]HVJUDSKLFVDQGLOOXVWUDWLRQVIRUHDV\ QDYLJDWLRQ(QDEOHVXVHUWRDQVZHUTXHVWLRQVDQGUHFHLYH UHOLDEOHDGYLFHRQKRZ26+$UHJXODWLRQVDSSO\WRWKHLUZRUNVLWH $OVRDYDLODEOHDVGRZQORDGDEOH¿OHVDQGLQ6SDQLVKKWWSZZZ RVKDJRYGWVRVWDRVKDVRIWLQGH[KWPOH7RROV x 26+$6DIHW\DQG+HDOWK7RSLFVWKLV ZHEVLWHKDVDVVHPEOHGDYDULHW\RI LQIRUPDWLRQRQPRUHWKDQWRSLFV WRSURYLGHXVHUVUHIHUHQFHPDWHULDOV LQFOXGLQJVWDQGDUGVGLUHFWLYHVWUDLQLQJ PDWHULDOVHWF7KHZHEVLWHLQFOXGHV PXOWLPHGLDPDWHULDODQXSGDWHGµ:KDW¶V 1HZ¶FDWHJRU\DQG8VHU¶V*XLGH(YHU\WKLQJIURP$FFLGHQW ,QYHVWLJDWLRQWR<RXWKWHHQZRUNHUVKWWSZZZRVKDJRY 6/7&LQGH[KWPO x 3RZHU3RLQW3UHVHQWDWLRQV7KHVHDUHSUHDVVHPEOHGSRZHU SRLQWSUHVHQWDWLRQVIRUFRQWUDFWRU¶VXVHRQWKHMRERULQWKHRI¿FH IRUWUDLQLQJSXUSRVHV(YHU\WKLQJIURP$PPRQLD5HIULJHUDWLRQWR :RUNSODFH9LROHQFHKWWSZZZRVKDJRY6/7&PXOWLPHGLD KWPO x 7DUJHWHG&'5RPVGHYHORSHGIRU+HDOWK&DUH&RQVWUXFWLRQ DQGRWKHUVSURYLGLQJ7HFKQLFDO/LQNVH7RROVDQG3RZHUSRLQW SUHVHQWDWLRQVUHODWHGWRVSHFL¿FWRSLFVVXFKDV&RQVWUXFWLRQ 2QO\DYDLODEOHDVKDQGRXWVIRUVSHFL¿F26+$FRXUVHV$YDLODEOH WKURXJKWKH26+$ZHEVLWHZZZRVKDJRY +HDOWKDQG6DIHW\ ,QIRUPDWLRQDYDLODEOHIURPWKH&HQWHUIRU'LVHDVH&RQWURO1,26+ x H/&26+(OHFWURQLF/LEUDU\RI&RQVWUXFWLRQ2FFXSDWLRQDO 6DIHW\DQG+HDOWKSURYLGHVZRUNHULQIRUPDWLRQFDWHJRUL]HGE\ KD]DUGWUDGHMREVLWHDQGRWKHUWUDLQLQJ,QIRUPDWLRQLVDOVR RIIHUHGLQ6SDQLVKZLWKVRPHGRFXPHQWVDYDLODEOHLQ&UHROH )UHQFK,WDOLDQDQG3RUWXJXHVH'HYHORSHGE\&HQWHUWR3URWHFW :RUNHU¶V5LJKWVIXQGHGE\1,26+ 5HIHUHQFHV &HQWHUIRU'LVHDVH&RQWURO(OHFWURQLF/LEUDU\RI&RQVWUXFWLRQ 2FFXSDWLRQDO6DIHW\DQG+HDOWKKWWSZZZFGFJRYHOFRVKLQGH[KWPO 86'HSDUWPHQWRI/DERU2FFXSDWLRQDO6DIHW\DQG+HDOWK$GPLQLVWUDWLRQ ZHEVLWHZZZRVKDJRY&RPSOLDQFH$VVLVWDQFHH7RROV +HDOWKDQG6DIHW\ &KDSWHU+HDOWKDQG6DIHW\ (TXLSPHQW *RDO7RLPSURYHWKHTXDOLW\RIOLIHIRUFRQVWUXFWLRQZRUNHUVE\ LQFUHDVLQJDZDUHQHVVRIWKHKHDOWKLPSOLFDWLRQVRIXVLQJJDVSRZHUHG YHKLFOHVLQFRQ¿QHGVSDFHV .H\,VVXHV x x x x &DUERQPRQR[LGHLVDOHWKDOSRLVRQSURGXFHGIURPEXUQHG JDVROLQH,WLVIRXQGLQWKHHQJLQHH[KDXVW &DUERQPRQR[LGHLVFRORUOHVVWDVWHOHVVRGRUOHVVDQG QRQLUULWDWLQJ &DUERQ0RQR[LGHKHDOWKHIIHFWVLQFOXGH R :HDNQHVVDQGFRQIXVLRQ R +HDGDFKHGL]]LQHVVQDXVHDVLPLODUWRDÀXRUFROG R 6XIIRFDWLRQFDXVHGE\FDUERQPRQR[LGHERQGLQJZLWK KHPRJORELQUHSODFLQJWKHR[\JHQLQ\RXUEORRGFDXVLQJ R[\JHQGH¿FLHQF\UHSODFHPHQW R 7KRVHZLWKKHDUWGLVHDVHDQGIHWXVHVRIH[SHFWLQJPRWKHUV DUHDWLQFUHDVHGULVN 6HYHULW\RIH[SRVXUHLVLQÀXHQFHGE\WKUHHIDFWRUV R 7KHFRQFHQWUDWLRQRIFDUERQPRQR[LGHLQWKHHQYLURQPHQW R 7KHOHQJWKRIH[SRVXUH R 7KHZRUNORDGDQGEUHDWKLQJUDWHRIWKHLQGLYLGXDO $FWLRQVDQG0HWKRGV x &RRUGLQDWHPRQLWRULQJRIDLUTXDOLW\ZLWK&%51HIIRUWV 7R5HGXFHWKH5LVNRI&DUERQ0RQR[LGH*DV(PLVVLRQV x 'RQRWXVHHTXLSPHQWDQGWRROVSRZHUHGE\JDVROLQHHQJLQHV LQVLGHEXLOGLQJVRURWKHUSDUWLDOO\HQFORVHGVSDFHVXQOHVVWKH JDVROLQHHQJLQHFDQEHSODFHGRXWGRRUVDQGDZD\IURPDLU LQWDNHV +HDOWKDQG6DIHW\ (PHUJLQJ7HFKQRORJ\ $OWHUQDWLYH)XHO6RXUFHVIRU(TXLSPHQW%LRGLHVHO %LRGLHVHOLVDFOHDQEXUQLQJIXHODOWHUQDWLYHSURGXFHGIURPGRPHVWLF UHQHZDEOHUHVRXUFHV%LRGLHVHO x &RQWDLQVQRSHWUROHXPEXWLVPL[HGZLWKSHWUROHXPGLHVHOWR FUHDWHDELRGLHVHOEOHQG x &DQEHXVHGLQFRPSUHVVLRQLJQLWLRQHQJLQHVGLHVHOZLWKOLWWOHWR QRPRGL¿FDWLRQV x ,VELRGHJUDGDEOHQRQWR[LFDQGHVVHQWLDOO\VXOIXUDQGDURPDWLFV IUHH x )XHOPXVWEHSURGXFHGDW$670'VWDQGDUGV x (PLWVSHUFHQWRIWKHFDUERQPRQR[LGHJDVFRPSDUHGWR UHJXODUIXHO :K\VKRXOGZHXVHWKLV"%HWWHUIRUWKHHQYLURQPHQWPDGHIURP86 EDVHGUHQHZDEOHUHVRXUFHVSURGXFHVORZHUHPLVVLRQVOHVVWR[LFWKDQ WDEOHVDOWDQGELRGHJUDGHVIDVWHUWKDQVXJDU 5HIHUHQFHV ³%LRGLHVHO´1DWLRQDO%LRGLHVHO%RDUGKWWSZZZELRGLHVHORUJ ³3UHYHQWLQJ&DUERQ0RQR[LGH3RLVRQLQJIURP6PDOO*DVROLQH3RZHUHG (QJLQHVDQG7RROV´3XEOLFDWLRQ1R1DWLRQDO,QVWLWXWHIRU 2FFXSDWLRQDO6DIHW\DQG+HDOWK +HDOWKDQG6DIHW\ &KDSWHU+HDOWKDQG6DIHW\ )LQLVKHV *RDO7RLPSURYHWKHTXDOLW\RIOLIHIRUFRQVWUXFWLRQZRUNHUVZKLOH LQVWDOOLQJ¿QLVKHV .H\,VVXHV x x 9RODWLOH2UJDQLF&RPSRXQGV92&VDUHJDVHVHPLWWHGIURP FHUWDLQVROLGVRUOLTXLGVVXFKDVIRUPDOGHK\GHEHQ]HQHWROXHQH VW\UHQHDQG[\OHQH 92&VIRXQGLQPDQ\¿QLVKLQJPDWHULDOVFDQFDXVHDGYHUVH KHDOWKHIIHFWV $FWLRQVDQG0HWKRGV 7R5HGXFH([SRVXUHWR92&V x 5HTXLUHPLQLPXP92&OHYHOVIRUDOOSURGXFWVDQGPDWHULDOV LGHQWL¿HGLQWKH/(('5HIHUHQFH0DQXDO x (QVXUHSURSHUYHQWLODWLRQZKHQXVLQJDGKHVLYHVFDUSHWV KDLUVSUD\VKRXVHKROGFOHDQHUVODFTXHUVSDLQWVSDLQWWKLQQHUV VWULSSHUVSHVWLFLGHVGU\FOHDQLQJÀXLGVEXLOGLQJPDWHULDOV KRPHIXUQLVKLQJVFRSLHUVDQGSULQWHUVSHUPDQHQWPDUNHUVDQG SKRWRJUDSKLFVROXWLRQV ,QVWDOOLQJ&DUSHWDQG5XJV x $YRLGKD]DUGRXVDGKHVLYHVE\FKRRVLQJQRQ92&SURGXFWV x $VNWKHPDQXIDFWXUHUWRDLUWKHFDUSHWDWOHDVWGD\VEHIRUH GHOLYHU\ x &OHDQROGFDUSHWEHIRUHUHPRYLQJ&DUSHWVKLGHGXVWSROOXWDQWV SHVWLFLGHVOHDGFKHPLFDOVDQGRWKHUXQGHVLUDEOHVZLWKLQWKHLU ¿EHUVDQGPLQLPL]H\RXUH[SRVXUHGXULQJUHPRYDO x 9DFXXPÀRRUVEHIRUHQHZFDUSHWLQVWDOODWLRQDQGFOHDQERWK VLGHVRIFDUSHWDQGSDG x ,QVWDOOFDUSHWRQO\LQZHOOYHQWLODWHGVSDFHV x 7DFNFDUSHWVLQVWHDGRIXVLQJDGKHVLYHV x $LUDOOLQVWDOODWLRQDUHDVIRUKRXUVDIWHULQVWDOODWLRQ +HDOWKDQG6DIHW\ +HDOWK\3DLQWLQJ*XLGHOLQHV x 6HOHFWSDLQWVGHVLJQHGIRULQGRRUXVH8VHZDWHUEDVHGRUODWH[ SDLQWVZKHQSRVVLEOH x 6FKHGXOHSDLQWLQJIRUGU\SHULRGVVXFKDVIDOORUVSULQJZKHQ ZLQGRZVFDQEHNHSWRSHQ x .HHSZLQGRZVRSHQIRUGD\VDIWHUSDLQWLQJ x 8VHIDQVWRH[KDXVWXQZDQWHGIXPHVDQGSURYLGHDGHTXDWH FURVVYHQWLODWLRQ x 3URYLGHQRWLFHWRQHDUE\RFFXSDQWV x 7DNHIUHTXHQWIUHVKDLUEUHDNVZKLOHSDLQWLQJ x /RRNIRUORFDOUHF\FOLQJSURJUDPVWRGLVFDUGH[FHVVSDLQW &RQWDFW\RXUORFDOJRYHUQPHQWIRUPRUHLQIRUPDWLRQ &RPPRQ+HDOWK(IIHFWVRI92&([SRVXUH x ,I\RXRURWKHUVDURXQG\RXDUHH[SHULHQFLQJDQ\RIWKHIROORZLQJ KHDOWKHIIHFWVFRQWDFW\RXU6DIHW\0DQDJHULPPHGLDWHO\ R &RQMXQFWLYDLUULWDWLRQ R 1RVHWKURDWGLVFRPIRUWRUKHDGDFKH R $OOHUJLFVNLQUHDFWLRQ R '\VSQHDQDXVHDHPHVLVGL]]LQHVVRUIDWLJXH (PHUJLQJ7HFKQRORJ\ $OWHUQDWLYH)ORRULQJ0DWHULDOV 0DQ\ÀRRULQJFKRLFHVFRQWDLQ92&VZKLFKFRQWULEXWHWRDLUSROOXWLRQ 9LQ\OÀRRULQJXWLOL]HVRIIJDVVLQJJOXHVDQGFRQWDLQVVROYHQWVZLWK92&V (YHQKDUGZRRGÀRRULQJFDQEHFKHPLFDOO\WUHDWHGDQGHPLW92&V /XFNLO\WKHUHDUHVDIHDOWHUQDWLYHVWRV\QWKHWLFDQGWUHDWHGÀRRULQJ $OWHUQDWLYHVLQFOXGHWUXHOLQROHXPXQWUHDWHGKDUGZRRGÀRRULQJFRUN ÀRRULQJPDUEOHVODWHDQGFHUDPLFÀRRUWLOHV&KRRVHZLVHO\ 5HIHUHQFHV ³'HVLJQIRU&RQVWUXFWLRQ6DIHW\7RROER[´3XEOLFDWLRQ &RQVWUXFWLRQ,QGXVWU\,QVWLWXWH&,,$XVWLQ7; ³+HDOWK\,QGRRU3DLQWLQJ3UDFWLFHV´(QYLURQPHQWDO3URWHFWLRQ $JHQF\KWWSZZZHSDJRYRSSWLQWUH[SRVXUHGRFVLQSDLQWSGI +HDOWKDQG6DIHW\ &KDSWHU,QGRRU(QYLURQPHQWDO4XDOLW\ *RDO7RHQVXUHWKHSURSHUPDQDJHPHQWRI,QGRRU$LU4XDOLW\,$4 PHDVXUHVGXULQJFRQVWUXFWLRQ %HQH¿WV x x x ,PSURYHG,$4IRURFFXSDQWV $KHDOWKLHUZRUNLQJHQYLURQPHQWIRUFRQVWUXFWLRQZRUNHUV 0LQLPL]HGULVNRIPROGDQGRWKHU,$4UHODWHGZDUUDQW\LVVXHV DQGFDOOEDFNV .H\V,VVXHV 7KHPDLQVRXUFHVRI,$4SUREOHPVLQEXLOGLQJVDUHUHODWHGWR x 0RLVWXUHLQWUXVLRQ x 'XVWEXLOGXSDQGLQWUXVLRQ x 2IIJDVVLQJRIKDUPIXOPDWHULDOV $FWLRQVDQG0HWKRGV x 6WHSVWDNHQGXULQJFRQVWUXFWLRQWRPDQDJHPRLVWXUHGXVWDQG KDUPIXOPDWHULDOVDUHNH\WRPDQDJLQJWKHULVNRI,$4SUREOHPV x ,PSOHPHQWDQ,$40DQDJHPHQW3ODQLQFOXGLQJNH\SURMHFW WUDGHVDQGDTXDOL¿HGFRPPLVVLRQLQJDJHQW5HI6HFWLRQ 7HVWDQGPRQLWRUYHQWLODWLRQDQGH[KDXVWDLUÀRZDQGVXVSHFWHG FRQWDPLQDQWSDUWLFOHVDQGJDVHVZLWKLQRFFXSLHGDUHDVRIWKH EXLOGLQJ ,GHQWLI\VRXUFHVRIFRQWDPLQDWLRQIURPFRQVWUXFWLRQDFWLYLWLHV DQGSRVLWLRQWKHPWRPLQLPL]H,$4SUREOHPV([DPSOH'RQRW ORFDWHDGLHVHOJHQHUDWRURUDURR¿QJNHWWOHQHDUDEXLOGLQJDLU LQWDNH ,GHQWLI\PDWHULDOVOLNHO\WRLPSDFW,$4DQGVHOHFWDVLPLODUEXW OHVVWR[LFVXEVWLWXWH([DPSOHVSURYLGHGEHORZDUHUXOHVRI WKXPEDQGZKLOHWKH\DUHJHQHUDOO\DSSOLFDEOHWKH\PD\QRW DSSO\LQHYHU\VLWXDWLRQ x x x ,QGRRU(QYLURQPHQWDO4XDOLW\ (QYLURQPHQWDQG2FFXSDQW)ULHQGO\$OWHUQDWLYHV x /DWH[SDLQWRYHURLOEDVHGSDLQW x +DUGZRRGRYHUSUHVVHGZRRG x :DWHUEDVHGRYHUVROYHQWEDVHGDGKHVLYHV x /RZIRUPDOGHK\GHHPLWWLQJIDEULFV x &RQWLQXRXV¿ODPHQWFDUSHW (QFORVH'XVW*HQHUDWLQJ$FWLYLWLHV x 0D\LQFOXGHWKHSK\VLFDOLVRODWLRQRIDVHFWLRQRIWKHEXLOGLQJZLWK SRO\HWK\OHQHVKHHWLQJRURWKHUEDUULHUV x 0D\QHHGWRLVRODWHWKHVSDFHIURPWKHJHQHUDOYHQWLODWLRQ V\VWHPE\EORFNLQJUHWXUQDLUJULOOHVRUDGGHG¿OWUDWLRQ x .HHSGRRUVFORVHGDQGVHDOVWDLUZHOOVVRWKDWWKH\GRQRWDFWDV FRQGXLWVIRUFRQWDPLQDQWV x 3RVLWLYHO\SUHVVXUL]LQJQRQZRUNDUHDVDQGXVHYHQWLODWLRQ V\VWHPVRYHUQLJKWWRSXUJHWKHEXLOGLQJDQGPLQLPL]H FRQWDPLQDQWPLJUDWLRQLQWRRFFXSLHGVSDFHV 5HIHUHQFHV ³'5$)7,QGRRU(QYLURQPHQWDO4XDOLW\*XLGDQFHIRU*UHHQ+LJK 3HUIRUPDQFHDQG6XVWDLQDEOH%XLOGLQJV´(QYLURQPHQWDO 3URWHFWLRQ$JHQF\ ³(QYLURQPHQWDO+HDOWKDQG6DIHW\´%RVWRQ&ROOHJHKWWSZZZ EFHGXRI¿FHVIDFLOLWLHVHKV .XHKQ7³&RQVWUXFWLRQDQG5HQRYDWLRQ,PSDFWRQ,QGRRU$LU 4XDOLW\&RQWURO6WUDWHJLHV´,QGRRU$LU4XDOLW\3URMHFW ,QGRRU(QYLURQPHQWDO4XDOLW\ &KDSWHU,QGRRU(QYLURQPHQWDO4XDOLW\ 3ODQQLQJ *RDO7RHGXFDWHWKHZRUNIRUFHDQGWRSURYLGHWKHQHFHVVDU\WRROV WRPLQLPL]H,QGRRU$LU4XDOLW\,$4SUREOHPVGXULQJWKHFRQVWUXFWLRQ SURFHVV .H\,VVXHV x x 'HYHORSDQ,$4PDQDJHPHQWJXLGHWRLQFOXGHLQWKHUHTXHVWIRU SURSRVDO5)3DQGFRQVWUXFWLRQGRFXPHQWV&'V (IIHFWLYHO\FRPPXQLFDWHDQGHQIRUFHWKHSODQ $FWLRQVDQG0HWKRGV (GXFDWHWKH:RUNIRUFH x 'HYHORSVXEFRQWUDFWRUDJUHHPHQWVWKDWFRPPXQLFDWHWKHJRDOV RIWKHFRQVWUXFWLRQ,$4SODQ x $WZHHNO\IRUHPDQ¶VPHHWLQJVGLVFXVVXSFRPLQJ,$4LVVXHV DQGKRZWKH\ZLOOEHPDQDJHG x &RPPXQLFDWHWKHJRDOVRIWKHFRQVWUXFWLRQ,$4SODQWRZRUNHUV YLDFRQVLVWHQWRQVLWHWUDLQLQJWRROER[WDONVDQGVLJQDJH x 3RVWSURPLQHQWVLJQDJHDERXWXQDFFHSWDEOHEHKDYLRUVWKDWPD\ KDYHDSRWHQWLDOQHJDWLYHLPSDFWRQORQJWHUP,$4LQFOXGLQJ 1RVPRNLQJLQVLGHEXLOGLQJ R 1RFKHZLQJWREDFFR R 'RQRWZHDUFRQWDPLQDWHGZRUNFORWKHV x 0LQLPL]HWKHXVHRIXQYHQWHGFRPEXVWLRQDVRFFXUVZLWK SURSDQHRUGLHVHO³VDODPDQGHU´VSDFHKHDWHUV 'HYHORSD&RQVWUXFWLRQ,$40DQDJHPHQW3ODQZKLFK x 0HHWVRUH[FHHGVPLQLPXP6KHHW0HWDODQG$LU&RQGLWLRQLQJ 1DWLRQDO&RQWUDFWRUV$VVRFLDWLRQ60$&1$,$4*XLGHOLQHVIRU 2FFXSLHG%XLOGLQJVXQGHU&RQVWUXFWLRQ x 3URWHFWVRQVLWHDEVRUSWLYHPDWHULDOVIURPPRLVWXUHGDPDJH x 5HTXLUHVUHSODFHPHQWRIDOO¿OWUDWLRQPHGLDZLWK0(59RISHU $6+5$(LPPHGLDWHO\SULRUWRRFFXSDQF\ (QIRUFHWKH,$40DQDJHPHQW3ODQ x ,QVSHFWDQGPDLQWDLQ,$4PHDVXUHVLQFOXGLQJYHQWLODWLRQV\VWHP SURWHFWLRQDQGYHQWLODWLRQUDWHV x 0RQLWRUDQGFRQWUROODSVHVLQ,$4PHDVXUHVE\WUDGHV ,QGRRU(QYLURQPHQWDO4XDOLW\ R 6FKHGXOLQJ x ,QVWDOOSRURXVPDWHULDOVHJLQVXODWLRQ¿UHSURR¿QJDQGGU\ZDOO PDWHULDOVRQO\DIWHUWKHEXLOGLQJLVZHDWKHUWLJKW x 6HTXHQFHPDWHULDOLQVWDOODWLRQVRWKDWPDWHULDOVZLWKVLJQL¿FDQW VRXUFHVRIFRQWDPLQDQWVHJFRPSRVLWHZRRGOLTXLGSURGXFWV LQFOXGLQJDGKHVLYHVSDLQWVDQGFRDWLQJVJ\SVXPERDUGKDYH WLPHWRRIIJDVEHIRUHSRURXVSURGXFWVHJFDUSHWDQGSDGGLQJ IDEULFZDOOFRYHULQJVDFRXVWLFWLOHVXSKROVWHUHGIXUQLWXUH WKDWKDYHWKHFDSDFLW\WRDEVRUERUWUDSWKHFRQWDPLQDQWVDUH LQVWDOOHG x :KHQSURSHUVHTXHQFLQJLVQRWSRVVLEOHSURWHFWDEVRUSWLYH VXUIDFHVZLWKYDSRUEDUULHUVDQGSURYLGHIRUDLUH[FKDQJHZLWK WHPSRUDU\RUSHUPDQHQWYHQWLODWLRQV\VWHPV x 3URYLGHSURSHU¿OWUDWLRQDQGDGHTXDWHYHQWLODWLRQZLWK SHUFHQWRXWGRRUDLUGXULQJFXULQJSHULRGWRDLGLQWKHUHPRYDO RISROOXWDQWVZLWKLQLQWHULRU¿QLVKHV'HKXPLGL¿FDWLRQPD\EH UHTXLUHGLQFHUWDLQDSSOLFDWLRQV x 0DWHULDOVLQQHHGRIFXULQJRIIJDVVLQJWLPH R :HWVSUD\FHOOXORVHWDNHVVHYHUDOGD\VRUORQJHUWRGU\ R ,QVWDOOFDUSHWLQJDQGIXUQLVKLQJVDIWHULQWHULRU¿QLVKHV KDYHFXUHGWRHOLPLQDWH92&VIURPEHLQJDEVRUEHGE\ SRURXVPDWHULDOVHJXQ¿QLVKHGGU\ZDOO R 3DLQWEHIRUHLQVWDOOLQJFDUSHWLQJRUIXUQLVKLQJV x ([SHGLWHWKHLQVWDOODWLRQRIWKHPHFKDQLFDOV\VWHPWRDOORZIRU KXPLGLW\FRQWURORIWKHEXLOGLQJSULRUWRWKHLQVWDOODWLRQRIGU\ZDOO ,ISRVVLEOHXVHDWHPSRUDU\V\VWHPRIYHQWLODWLRQ x /LPLWRSHUDWLRQRIWKHEXLOGLQJ¶V+9$&V\VWHPGXULQJ FRQVWUXFWLRQ,ILWLVXQDYRLGDEOHFOHDQDOO¿OWHUVGXFWVDQG HTXLSPHQWVXUIDFHVLQFOXGLQJFRLOVWRWKHVDPHOHYHORI FOHDQOLQHVVDVXQXVHGHTXLSPHQW x &RRUGLQDWHURR¿QJVHTXHQFHZLWKLQWHULRUVWRSUHYHQWPRLVWXUH LQ¿OWUDWLRQ x 6HTXHQFHHOHYDWRUFRQVWUXFWLRQDIWHUURRIDQGHQFORVXUHLV FRPSOHWH x 5HTXLUHWZRZHHNEXLOGLQJÀXVKRXWDWWKHHQGRIFRQVWUXFWLRQ EHIRUHRFFXSDQF\SHU/(('FUHGLWUHTXLUHPHQW ,QGRRU(QYLURQPHQWDO4XDOLW\ 5HIHUHQFHV ³'5$)7,QGRRU(QYLURQPHQWDO4XDOLW\*XLGDQFHIRU*UHHQ+LJK 3HUIRUPDQFHDQG6XVWDLQDEOH%XLOGLQJV´(QYLURQPHQWDO3URWHFWLRQ $JHQF\ ³,$4'HVLJQ7RROVIRU6FKRROV´86(QYLURQPHQWDO3URWHFWLRQ $JHQF\KWWSZZZHSDJRYLDTVFKRROGHVLJQ ³,QGRRU(QYLURQPHQWDO4XDOLW\´&LW\RI6DQ-RVH KWWSZZZFLVDQMRVHFDXVHVGJELQGRRUHQYLURQPHQWKWP /+DUULPDQ'60)RZOHU³3UHYHQWLQJ0ROGE\.HHSLQJ1HZ &RQVWUXFWLRQ'U\´$6+5$(-RXUQDO ³/(('3URMHFW/LVW´86*UHHQ%XLOGLQJ&RXQFLOKWWSVZZZ XVJEFRUJ/(('3URMHFWSURMHFWBOLVWDVS :LOVRQ$0ROGLQ%XLOGLQJV(QYLURQPHQWDO%XLOGLQJ1HZV ,QGRRU(QYLURQPHQWDO4XDOLW\ &KDSWHU,QGRRU(QYLURQPHQWDO4XDOLW\ *HQHUDO&RQGLWLRQV *RDO7RHQVXUH,QGRRU$LU4XDOLW\,$4LVVXHVDUHPDQDJHGDQG H[HFXWHGSURSHUO\ .H\,VVXHV x x x x &RQWURORIGXVWDQGPRLVWXUHGXULQJFRQVWUXFWLRQ ,QVWDOODWLRQRIWHPSRUDU\SDUWLWLRQV ,QVWDOODWLRQRIWHPSRUDU\YHQWLODWLRQ +RXVHNHHSLQJ $FWLRQVDQG0HWKRGV 6LJQDJH x 3RVWSURPLQHQWVLJQDJHDERXWXQDFFHSWDEOHEHKDYLRUVWKDW PD\KDYHDQHJDWLYHLPSDFWRQORQJWHUP,$4LQFOXGLQJ R 1RVPRNLQJLQVLGHEXLOGLQJ R 1RFKHZLQJWREDFFR R 'RQRWZHDUFRQWDPLQDWHGZRUNFORWKHV 1RHDWLQJLQVLGHWKHEXLOGLQJ 7HPSRUDU\%DUULHUV x&UHDWHFOHDQWRGLUW\DLUÀRZZLWKSUHVVXUL]DWLRQVWUDWHJLHV R x x x 3RVLWLYHO\SUHVVXUL]HQRQZRUNDUHDVDQGXVHYHQWLODWLRQV\VWHPV RYHUQLJKWWRSXUJHWKHEXLOGLQJDQGPLQLPL]HFRQWDPLQDQW PLJUDWLRQLQWRRFFXSLHGVSDFHV .HHSGRRUVFORVHGDQGVHDOVWDLUZHOOVVRWKDWWKH\GRQRWDFWDV FRQGXLWVIRUFRQWDPLQDQWV (QFORVHGXVWJHQHUDWLQJDFWLYLWLHVZLWKWHPSRUDU\EDUULHUVWR LVRODWHWKHPIURPRWKHUDUHDVRIWKHEXLOGLQJ7KLVPD\LQFOXGH SK\VLFDOO\LVRODWLQJDVHFWLRQRIWKHEXLOGLQJZLWKSRO\HWK\OHQH VKHHWLQJRULVRODWLQJWKHVSDFHIURPWKHJHQHUDOYHQWLODWLRQ V\VWHPE\EORFNLQJUHWXUQDLUJULOOHVRUDGGLQJ¿OWUDWLRQ ,QGRRU(QYLURQPHQWDO4XDOLW\ +RXVHNHHSLQJ x 'HYHORSDFOHDQLQJSURJUDPDQGSURYLGHKLJKHI¿FLHQF\ SDUWLFXODWH¿OWHUV+(3$¿OWHUVRQYDFXXPV x 6HDODOORSHQLQJVLQZDOOVÀRRUVDQGFHLOLQJVWKDWVHSDUDWH FRQGLWLRQHGVSDFHVIURPXQFRQGLWLRQHGVSDFHV x 'HVLJQDWHDVSDFHRXWVLGHIRUEUHDNVDQGHDWLQJ7KLVZLOO NHHSDOOWUDVKFRQWDLQHGLQRQHDUHDDQGSURYLGHDKHDOWKLHU HQYLURQPHQWIRUZRUNHUV x 0LQLPL]HDFFXPXODWLRQRIGXVWDQGRWKHUFRQWDPLQDQWVE\ XVLQJLQWHJUDOGXVWFROOHFWLRQV\VWHPVRQGU\ZDOOVDQGHUVFXWRII VDZVDQGURXWHUV x ,VRODWHGXVWJHQHUDWLQJDFWLYLWLHVVRWKDWFOHDQXSFDQEHHDVLO\ FDUULHGRXWZLWKRXWFRQWDPLQDWLRQRIRWKHUDUHDVRIWKHEXLOGLQJ x 8VHZHWWLQJDJHQWVRUVZHHSLQJFRPSRQHQWVWRNHHSGXVW IURPEHFRPLQJDLUERUQHGXULQJFOHDQXS x 8VHZHWUDJVGDPSPRSVDQGYDFXXPFOHDQHUVZLWK+(3$ ¿OWHUVWRFOHDQGXVW x .HHSZRUNDUHDGU\E\¿[LQJDQ\OHDNVWKDWDOORZUDLQZDWHUHQWU\ DQGDQ\ZDWHUDFFXPXODWLRQ x 6HDOFRQWDLQHUVRIYRODWLOHOLTXLGVIXHOSDLQW¿QLVKHVVROYHQWV DQGVWRUHRXWVLGHZKHQSRVVLEOH 5HIHUHQFHV ³,$4'HVLJQ7RROVIRU6FKRROV´86(QYLURQPHQWDO3URWHFWLRQ $JHQF\KWWSZZZHSDJRYLDTVFKRROGHVLJQ ³,QGRRU(QYLURQPHQWDO4XDOLW\´&LW\RI 6DQ-RVHKWWSZZZFLVDQMRVHFDXVHVG JELQGRRUHQYLURQPHQWKWP /+DUULPDQ'60)RZOHU³3UHYHQWLQJ0ROGE\.HHSLQJ1HZ &RQVWUXFWLRQ'U\´$6+5$(-RXUQDO ³/(('3URMHFW/LVW´86*UHHQ%XLOGLQJ&RXQFLOKWWSVZZZ XVJEFRUJ/(('3URMHFWSURMHFWBOLVWDVS :LOVRQ$0ROGLQ%XLOGLQJV(QYLURQPHQWDO%XLOGLQJ1HZV ,QGRRU(QYLURQPHQWDO4XDOLW\ &KDSWHU,QGRRU(QYLURQPHQWDO4XDOLW\ 'HPROLWLRQDQG$EDWHPHQW *RDO7RSUHYHQW,QGRRU$LU4XDOLW\,$4SUREOHPVGXULQJGHPROLWLRQ DQGUHQRYDWLRQSURMHFWV .H\,VVXHV x x x x &RQWDLQDQ\ÀRZRIGXVWSDUWLFOHVLQWRDGMDFHQWRFFXSLHGDUHDV 6HDODQGPDQDJHFORVHO\WKHUHPRYDORIKD]DUGRXVPDWHULDOV 8VHTXDOL¿HGDQGFRPSHWHQWDEDWHPHQWFRQWUDFWRUV &RQVXOW,QWHUQDWLRQDO&RUSVRIWKH5HG&URVV,&5&VWDQGDUGVLI GHPROLWLRQLVWDNLQJSODFHLQRUQHDUDKHDOWKFDUHIDFLOLW\ $FWLRQVDQG0HWKRGV (GXFDWH x %ULHIDOOZRUNHUVRQVLWHWRHQVXUHIXOOFRPSOLDQFHZLWKWKHGXVW FRQWUROPHDVXUHVLQWKH&RQVWUXFWLRQ'RFXPHQWV&'V 7HPSRUDU\%DUULHUV x ,QVWDOOEDUULHUVEHWZHHQZRUNDUHDVDQGRFFXSLHGDUHDV x ,QVWDOOEDUULHUVDQGFORVXUHVDERYHFHLOLQJVWRSUHYHQWWKH WUDQVPLVVLRQRIGXVWLQWRDGMDFHQWDUHDV %DUULHUVVKRXOGEHPDQDJHGZLWKQHJDWLYHDLUSUHVVXUHV DLUÀRZLQWRWKHFRQVWUXFWLRQDUHDZLWKDSUHVVXUHGLIIHUHQFH JUHDWHUWKDQ´ZJRU3DVFDOV x 8VH+(3$¿OWHUVIRUDOOGLVFKDUJHGDLUIRUSDUWLFXODWHUHPRYDO x 5HSODFHFHLOLQJDFFHVVSDQHOVEH\RQGWKHVHDOHGDUHDV RQFHLQYHVWLJDWLRQVDUHFRPSOHWH'RQRWOHDYHRSHQFHLOLQJV XQDWWHQGHG 5HGXFHWKH5LVNRI0ROG x 8VHH[KDXVWPHWKRGVVLPLODUWRDVEHVWRVORFDOH[KDXVWLQJIRU KHDYLO\FRQWDPLQDWHGDUHDVRIPROGDQGPLOGHZLQIHVWDWLRQV x x 'XULQJUHPHGLDWLRQRIPROGPLQLPL]HSRWHQWLDOH[SRVXUHWR EXLOGLQJRFFXSDQWVE\ZRUNLQJGXULQJRIIKRXUV ,QGRRU(QYLURQPHQWDO4XDOLW\ &RQWURODQG0LQLPL]H'XVW x 'RQRWDOORZGXVWDQGGHEULVWRDFFXPXODWHRQVLWH±UHPRYH GXVWGDLO\)LWRXWFRQWDLQHUVZLWKFOHDQSRO\HWK\OHQHFRYHUV ZKHQWUDQVSRUWLQJZDVWHWKURXJKRFFXSLHGDUHDVRIWKHEXLOGLQJ %HIRUHOHDYLQJFRQVWUXFWLRQDUHDVZLSHFOHDQDOOFRQWDLQHUVZLWK DGDPSVSRQJHWRSUHYHQWWUDFNLQJRIGXVW x 3URYLGHZDONRIIPDWVLQVLGHRIGXVWFRQWUROEDUULHUV&OHDQRU FKDQJHZDONRIIPDWVGDLO\RUPRUHRIWHQDVQHHGHGWRSUHYHQW DFFXPXODWLRQRIGXVW x 8SRQFRPSOHWLRQFDUHIXOO\UHPRYHGXVWFRQWUROEDUULHUVDQG FHLOLQJSURWHFWLRQWRPLQLPL]HWKHVSUHDGRIGLUWDQGGHEULV 3(15(1&3UDFWLFH 3HQWDJRQ5HQRYDWLRQ $SSUR[LPDWHO\ OEVRIDVEHVWRVZLOO EHUHPRYHGIURPWKH 3HQWDJRQGXULQJLWV UHQRYDWLRQ 7HPSRUDU\EDUULHUVDQG YHQWLODWLRQV\VWHPVZHUH XVHGWKURXJKRXWWKH SURMHFWWRFRQWDLQGXVWDQG GHEULVGXULQJFRQVWUXFWLRQ ZZZLEHZRUJVWRULHVMRXUQDOSKWP 5HIHUHQFHV ³6HFWLRQ'XVW&RQWURO´KWWSIPZHEYLUJLQLDHGXISF +6'LYLVLRQ'XVW&RQWURO5HYLVHG%)GRF 6WUHLIHO$³%DUULHUVDUH&ULWLFDOWR3URWHFW,$4GXULQJ 5HQRYDWLRQ´,QGRRU$LU4XDOLW\3URMHFW ,QGRRU(QYLURQPHQWDO4XDOLW\ &KDSWHU,QGRRU(QYLURQPHQWDO4XDOLW\ 6LWH:RUN *RDO7RSUHYHQWHTXLSPHQWJHQHUDWHGWR[LQV92&VIURPHQWHULQJ WKHEXLOGLQJGXULQJFRQVWUXFWLRQDQGHQVXUHWKHVDIHVWRUDJHRIPDWHULDOV RQVLWH .H\,VVXHV x 'XVWSHQHWUDWLRQLQWRWKHEXLOGLQJ x &RQWDPLQDWLRQRIDLUIURPHTXLSPHQWH[KDXVW x 0RLVWXUHGDPDJHWRVWRUHGPDWHULDOV x 0RLVWXUHSUREOHPVGXHWRLPSURSHUGUDLQDJHDQGPRLVWXUH FRQWUROGXULQJFRQVWUXFWLRQ $FWLRQVDQG0HWKRGV &RQWURODQG0LQLPL]H'XVW x 'XVWFRQWUROPHDVXUHVVKRXOGEHWDNHQRQZRUNHUDQG HTXLSPHQWWUDYHOSDWKV x 7HPSRUDU\ZLQGRZEDUULHUVVKRXOGEHXVHGRQORZHUÀRRUV x 5RXWHWUDI¿FDZD\IURPEXLOGLQJRSHQLQJVZKHQSRVVLEOH (TXLSPHQWH[KDXVW x 6LWHUHODWHGFRQVWUXFWLRQHTXLSPHQWVKRXOGEHORFDWHGDZD\IURP WKHEXLOGLQJDFFHVVDUHDVDQGEXLOGLQJDLULQWDNHV 0DWHULDO6WRUDJH x 7KHVWRUDJHRIPDWHULDOVRXWVLGHWKHEXLOGLQJVKRXOGEH PLQLPL]HG x 0DWHULDOVVKRXOGEHVWRUHGRIIRIWKHJURXQGRQSDOOHWVRURQ GXQQDJH x 'RQRWVWRUHPDWHULDOVLQDUHDVRIWKHVLWHWKDWDUHORZRUWKDW KDYHLQVXI¿FLHQWGUDLQDJH 6LWH'UDLQDJH x (QVXUHVLWHLVJUDGHGWRFKDQQHOZDWHUDZD\IURPWKH EXLOGLQJHVSHFLDOO\LIFRQVWUXFWLRQLVEHORZJUDGH x &RQQHFWEXLOGLQJUDLQOHDGHUVWRDVWRUPGUDLQV\VWHP :LWKLQDIHZIHHWRIWKHEXLOGLQJSURYLGHDORZSHUPHDELOLW\ VRLOPL[KLJKFOD\FRQWHQWWRPLQLPL]HLQ¿OWUDWLRQRIUDLQZDWHU LPPHGLDWHO\DGMDFHQWWRWKHEXLOGLQJ ,QGRRU(QYLURQPHQWDO4XDOLW\ x &DVH6WXG\ 'XVW&RQWURO 6LWHZRUNFDQFUHDWHGXVWGXULQJEXLOGLQJFRQVWUXFWLRQ:DWHUWUXFNVDQG ZKHHOFOHDQLQJRSHUDWLRQVFDQKHOSFRQWDLQGXVWRQODUJHVLWHV ,PDJHVFRXUWHV\RI&DWHUSLOODU 5HIHUHQFHV .XHKQ7³&RQVWUXFWLRQDQG5HQRYDWLRQ,PSDFWRQ,QGRRU$LU 4XDOLW\&RQWURO6WUDWHJLHV´,QGRRU$LU4XDOLW\3URMHFW :LOVRQ$0ROGLQ%XLOGLQJV(QYLURQPHQWDO%XLOGLQJ1HZV ,QGRRU(QYLURQPHQWDO4XDOLW\ &KDSWHU,QGRRU(QYLURQPHQWDO4XDOLW\ )RXQGDWLRQV *RDO7RSUHYHQW,QGRRU$LU4XDOLW\,$4SUREOHPVLQEXLOGLQJV WKURXJKHIIHFWLYHPHDVXUHVWDNHQGXULQJWKHFRQVWUXFWLRQRIVXEJUDGH DQGVODERQJUDGHV\VWHPV .H\,VVXHV x x x x (QVXUHSURSHUPRLVWXUHEDUULHUVDUHXVHGXQGHUVODEV (QVXUHGUDLQDJHJUDYHOLVFOHDQDQGRISURSHUGHSWK 6HDODOOVODERQJUDGHSHQHWUDWLRQV (QVXUHUDGRQPLWLJDWLRQLVSHUIRUPHGSURSHUO\LIUHTXLUHGVHH EHORZ $FWLRQVDQG0HWKRGV 9DSRU5HWDUGHU x 3URYLGHSRO\HWK\OHQHYDSRUUHWDUGDQWXQGHUÀRRUVODE x )RUVODERQJUDGHFRQVWUXFWLRQSURYLGHHLWKHUDOD\HURI SRO\HWK\OHQHPLOPLQRUULJLGLQVXODWLRQXQGHUWKHVODEWR EORFNFDSLOODU\PRYHPHQWRIPRLVWXUHLQWRWKHVODEIURPEHORZ )RUDPRQROLWKLFVODERQJUDGHWKHSRO\YDSRUUHWDUGHUVKRXOG H[WHQGEHQHDWKWKHJUDGHEHDP x $YRLGDOD\HURIVDQGEHWZHHQWKHSRO\DQGWKHFRQFUHWH7KLV FDQSURYLGHDPROGUHVHUYRLU 5DGRQ5HGXFWLRQ x ,QVWDOODOD\HURIJDVSHUPHDEOHPDWHULDOXQGHUWKHIRXQGDWLRQ XVXDOO\IRXULQFKHVRIJUDYHO x ,QVWDOOSODVWLFVKHHWLQJRYHUWKHJDVSHUPHDEOHPDWHULDO x 6HDODQGFDXONDOORSHQLQJVLQWKHFRQFUHWHIRXQGDWLRQÀRRU x 5XQDJDVWLJKWWKUHHRUIRXULQFKYHQWSLSHXQGHUWKH IRXQGDWLRQWKURXJKWKHKRXVHWRWKHURRI x x 5RXJKLQDQHOHFWULFDOMXQFWLRQER[IRUWKHIXWXUHLQVWDOODWLRQRID IDQ ,QGRRU(QYLURQPHQWDO4XDOLW\ 0RLVWXUH3URWHFWLRQ x 3URYLGHGDPSSURR¿QJDQGDGUDLQDJHSODQHRQWKHIRXQGDWLRQ ZDOO7KHGUDLQDJHSODQHVKRXOGEHSURYLGHGQH[WWRWKH IRXQGDWLRQZDOODOD\HURIGUDLQDJHPDWRUIUHHGUDLQLQJ LQVXODWLRQSOXVEDFN¿OOLQJZLWKFUXVKHGVWRQHLVSUHIHUDEOH x 3URYLGHGUDLQDJHWLOHDWIRXQGDWLRQIRRWLQJV3HUIRUDWHG SHULPHWHUGUDLQDJHSLSHVKRXOGEHLQVWDOOHGZLWKDPLQLPXP VORSHRIKDOIDQLQFKLQIHHW/RFDWHSLSHEHORZÀRRUOHYHO EXWGRQRWH[WHQGEHORZERWWRPRIIRRWLQJ'UDLQWRGD\OLJKWRU VXPS6XUURXQGGUDLQSLSHZLWKFUXVKHGVWRQHDQGSURWHFWWKH OD\HURIVWRQHZLWK¿OWHUIDEULFWRNHHS¿QHVRXW x 3URYLGHFDSLOODU\EUHDNGDPSSURR¿QJRUPHPEUDQHEHWZHHQ WKHIRRWLQJDQGIRXQGDWLRQZDOORUSHULPHWHUIRXQGDWLRQIRUVODE RQJUDGH &DVH6WXG\ 6ODE2Q*UDGH 3UHSDUDWLRQVIRUVODERQJUDGHFRQVWUXFWLRQVKRXOGHQVXUHSURSHUGHSWK RIVXEJUDGHDQGWKHXVHRIDSSURYHGYDSRUUHWDUGHUV([SRVHGVODEV VKRXOGEHVHDOHGWRPLQLPL]HLQ¿OWUDWLRQRIKDUPIXOJDVDQGGLUWLQWR EXLOGLQJV &RXUWHV\RIKWWSZZZQHIIDQGMHQVHQFRPSDJHVVODEKWP 5HIHUHQFHV ³5DGRQ5HGXFWLRQLQ1HZ&RQVWUXFWLRQ´(QYLURQPHQWDO+HDOWK &HQWHUKWWSZZZQVFRUJHKFUDGRQFRQVWUXFKWP :LOVRQ$0ROGLQ%XLOGLQJV(QYLURQPHQWDO%XLOGLQJ1HZV ,QGRRU(QYLURQPHQWDO4XDOLW\ &KDSWHU,QGRRU(QYLURQPHQWDO4XDOLW\ 6XEVWUXFWXUH *RDO7RSUHYHQW,QGRRU$LU4XDOLW\,$4SUREOHPVFDXVHGE\ FRQVWUXFWLRQRIIRXQGDWLRQZDOOVDQGRWKHUEHORZJUDGHVWUXFWXUHV .H\,VVXHV x x x x x 0LQLPL]HSHQHWUDWLRQVWKURXJKIRXQGDWLRQZDOOV 6HDODOOSHQHWUDWLRQVWKURXJKIRXQGDWLRQZDOOV (QVXUHSURSHULQVWDOODWLRQRIPRLVWXUHSURWHFWLRQDQGZDWHUVWRSV RQIRXQGDWLRQZDOOV (QVXUHSURSHULQVWDOODWLRQRIGUDLQDJHJUDYHOGUDLQDJHSLSHDQG ¿OWHUIDEULF &RQWUROVLWHGUDLQDJHGXULQJVXEVWUXFWXUHFRQVWUXFWLRQ $FWLRQVDQG0HWKRGV 6LWH'UDLQDJH x *UDGHVLWHDZD\IURPVXEJUDGHFRQVWUXFWLRQ x 3URYLGHGHZDWHULQJV\VWHPVWRNHHSVXEVWUXFWXUHGU\ x 3URYLGHGDPSSURR¿QJDQGDGUDLQDJHSODQHRQWKHIRXQGDWLRQ ZDOO7KHGUDLQDJHSODQHVKRXOGEHSURYLGHGQH[WWRWKH IRXQGDWLRQZDOODOD\HURIGUDLQDJHPDWRUIUHHGUDLQLQJ LQVXODWLRQSOXVEDFN¿OOLQJZLWKFUXVKHGVWRQHLVSUHIHUDEOH 3URYLGHGUDLQDJHWLOHDWIRXQGDWLRQIRRWLQJV3HUIRUDWHG SHULPHWHUGUDLQDJHSLSHVKRXOGEHLQVWDOOHGZLWKDPLQLPXP VORSHRIKDOIDQLQFKLQIHHW/RFDWHSLSHEHORZÀRRUOHYHO EXWGRQRWH[WHQGEHORZERWWRPRIIRRWLQJ'UDLQWRGD\OLJKWRU VXPS6XUURXQGGUDLQSLSHZLWKFUXVKHGVWRQHDQGSURWHFWWKH OD\HURIVWRQHZLWK¿OWHUIDEULFWRNHHS¿QHVRXW 0RLVWXUH%DUULHUVDQG6HDODQWV x ,QVSHFWLQVWDOODWLRQRIZDWHUVWRSVDQGSHQHWUDWLRQVHDODQWV x &KRRVHORZ92&VHDODQWDQGPRLVWXUHEDUULHUPDWHULDOV6HH &KDSWHUIRUPDWHULDOV x x x (QVXUHZRUNHUVLQVWDOOLQJPRLVWXUHEDUULHUVXVHSURSHUEUHDWKLQJ DQGH\HSURWHFWLRQ 3URYLGHFDSLOODU\EUHDNGDPSSURR¿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¿FDOO\H[SHGLWLQJURRIFRQVWUXFWLRQDQG WKHZHDWKHUSURWHFWLRQRIWKHEXLOGLQJ .H\,VVXHV x 0LQLPDO,$4ULVNVDUHUHODWHGWRVXSHUVWUXFWXUHFRQVWUXFWLRQ ,QGRRU(QYLURQPHQWDO4XDOLW\ &KDSWHU,QGRRU(QYLURQPHQWDO4XDOLW\ ([WHULRU(QFORVXUH *RDO7RSUHYHQW,QGRRU$LU4XDOLW\,$4SUREOHPVFDXVHGE\ LQVWDOODWLRQRIWKHH[WHULRUEXLOGLQJHQFORVXUH .H\,VVXHV x x x 0RLVWXUHDQGGXVWLQWUXVLRQHQWUDSPHQWGXULQJIDoDGH FRQVWUXFWLRQ 7KHWLPHO\FRPSOHWLRQRIEXLOGLQJHQFORVXUHVWRDOORZORDGLQJ RIPDWHULDOVWKDWDUHVHQVLWLYHWRPRLVWXUH 7KHLQFOXVLRQRIDOOÀDVKLQJDQGMRLQWVHDODQWVLVFOHDUO\LQGLFDWHG LQFRQWUDFWV $FWLRQVDQG0HWKRGV *HQHUDO&RQVWUXFWLRQ x 3URSHUO\VHDOMRLQWVDQGXQQHFHVVDU\RSHQLQJV x ([WHQGÀDVKLQJSDVWHGJHRIPRUWDULQEULFNVWRQHFODGZDOO V\VWHPV x (QVXUHFOHDQDLUFDYLWLHVLQH[WHULRUZDOOFRQVWUXFWLRQ R 3UREOHP0RUWDUDQGRWKHUGHEULVWKDWIDOOVLQWRDLU FDYLWLHVPD\EORFNYHQWVDQGZHHSKROHVZKLFKZLOO FDXVHFRQGHQVHGPRLVWXUHWRFROOHFWDQGUHVXOWVLQPROG DQGPLOGHZJURZWK 62/87,218VHDSLHFHRIZRRGWRFDWFKPRUWDUEHIRUH LWIDOOVLQWRDLUFDYLW\ 0DWHULDO6WRUDJH x &RYHUGU\PDWHULDOVZLWKSODVWLFWRSUHYHQWUDLQGDPDJH,I UHVWLQJRQWKHJURXQGXVHVSDFHUVWRDOORZDLUWRFLUFXODWH EHWZHHQWKHJURXQGDQGWKHPDWHULDOV x :HWPDWHULDOVVKRXOGEHDOORZHGWRGU\SULRUWRLQVWDOODWLRQ R %HDZDUHWKDWVRPHPDWHULDOVVXFKDVZRRGPD\DUULYHRQVLWH ZLWKDKLJKPRLVWXUHFRQWHQWGXHWRPRLVWXUHEHIRUHDUULYDORU GXULQJWUDQVSRUWDWLRQ )DoDGH&RQWUDFW x 8VHDSULPHFRQWUDFWRURUGHVLJQEXLOGFRQWUDFWIRUWKHHQWLUH EXLOGLQJIDoDGHWRHQVXUHDFFRXQWDELOLW\IRUWKHSHUIRUPDQFHRI WKHIDoDGHDVDV\VWHP ,QGRRU(QYLURQPHQWDO4XDOLW\ x &DVH6WXG\ &RPSOH[%XLOGLQJ)DFDGHV /HDNVLQIDFDGHVDUHDPDMRUULVNWR,$4LQEXLOGLQJV%XLOGLQJIDFDGHV RIWHQUHTXLUHQXPHURXVPDWHULDOVVXFKDVPHWDOSDQHOVVWRQHDQG JODVV,QPDQ\FDVHVPXOWLSOHFRQWUDFWRUVDUHUHTXLUHGWRFRPSOHWHWKH ZRUN([WUDFDUHLVQHHGHGWRHQVXUHWKDWDOOMRLQWVDUHFRYHUHGLQWKH VFRSHRIZRUNIRUWKHIDoDGHDQGWKDWDVHTXHQFHSODQLVGHVLJQHGWR HQVXUHWLPHO\FRPSOHWLRQRIWKHEXLOGLQJHQFORVXUH )LYHGLIIHUHQWIDoDGHPDWHULDOVZHUHUHTXLUHGLQWKHHQFORVXUHRIWKH'DYLG63RWWUXFN &HQWHU8QLYHUVLW\RI3HQQV\OYDQLD 5HIHUHQFHV ³'XFW&OHDQOLQHVVIRU1HZ&RQVWUXFWLRQ*XLGHOLQHV´60$&1$ &KDQWLOO\9$ ³,$4'HVLJQ7RROVIRU6FKRROV´86(QYLURQPHQWDO3URWHFWLRQ $JHQF\KWWSZZZHSDJRYLDTVFKRROGHVLJQ :LOVRQ$0ROGLQ%XLOGLQJV(QYLURQPHQWDO%XLOGLQJ1HZV ,QGRRU(QYLURQPHQWDO4XDOLW\ &KDSWHU,QGRRU(QYLURQPHQWDO4XDOLW\ 5RR¿QJ *RDO7RSUHYHQW,QGRRU$LU4XDOLW\,$4SUREOHPVFDXVHGE\ LQVWDOODWLRQRIWKHURR¿QJV\VWHP .H\,VVXHV x x 0RLVWXUHLQ¿OWUDWLRQ 3UHYHQWLRQRIWR[LFFKHPLFDOVEHLQJDEVRUEHGLQRWKHUPDWHULDOV $FWLRQVDQG0HWKRGV x x x x x x 6HTXHQFHURR¿QJWRSUHYHQWPRLVWXUHLQ¿OWUDWLRQGXULQJWKH FRQVWUXFWLRQRILQWHULRU¿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¿QJ PHPEUDQHVFDQEHDEVRUEHGE\PDWHULDOV VXFKDVFDUSHWDQGGU\ZDOO5RR¿QJVKRXOGEH VFKHGXOHGEHIRUHVXFKPDWHULDOVDUHLQVWDOOHGWR SUHYHQWWKHUHUHOHDVHRIWKHVHWR[LQVWKURXJKRXW WKHOLIHRIWKHEXLOGLQJ ZZZPDUVKDOOFRQVWUXFWLRQFRXNURR¿QJKWP 5HIHUHQFHV ³(QYLURQPHQWDO+HDOWKDQG6DIHW\´%RVWRQ&ROOHJHKWWSZZZ EFHGXRI¿FHVIDFLOLWLHVHKV ,QGRRU(QYLURQPHQWDO4XDOLW\ &KDSWHU,QGRRU(QYLURQPHQWDO4XDOLW\ ,QWHULRU&RQVWUXFWLRQ *RDO7RSUHYHQW,QGRRU$LU4XDOLW\,$4SUREOHPVFDXVHGE\ LQVWDOODWLRQRIWKHLQWHULRU¿QLVKHV .H\,VVXHV x x x 0RLVWXUHLQ¿OWUDWLRQ 'XVWFRQWURO 7R[LFLW\DQGRIIJDVVLQJ $FWLRQVDQG0HWKRGV 6FKHGXOLQJ x ([SHGLWHEXLOGLQJHQFORVXUHWRSUHYHQWPRLVWXUHEXLOGXSDQG DOORZIRUGU\LQ x 6FKHGXOHDSSOLFDWLRQRIWR[LFFKHPLFDOVWDUVHDODQWEHIRUH LQVWDOODWLRQRIPDWHULDOVWKDWDEVRUEFKHPLFDOV92&VVXFKDV GU\ZDOOFDUSHWZRRGDQGIXUQLWXUHDVWKHVHPDWHULDOVZLOOUH UHOHDVHWR[LQVWKURXJKRXWWKHOLIHRIWKHEXLOGLQJ 0DWHULDO6WRUDJH x x x x x x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x 8VHYDFXXPDVVLVWHGGU\ZDOOVDQGLQJHTXLSPHQWWRUHGXFHGXVW x 0HDVXUHDQGGRFXPHQWPRLVWXUHFRQWHQWRIDOOFRQFUHWHEORFN DQGGRQRWLQVWDOOJ\SVXPERDUGRQWKHVHZDOOVXQWLOWKHPRLVWXUH FRQWHQWRIWKHEORFNVPHDVXUHVWKHVDPHDVWKHLGHQWLFDOW\SHRI EORFNVWRUHGDZD\IURPH[SRVXUHWRUDLQ x 5XQVHDPVRIGU\ZDOOYHUWLFDOO\DORQJZRRGPHWDOVWXGVWR UHGXFHLQ¿OWUDWLRQ x ,QVWDOOD¿UHVHDODQWEHDGRIRIDQLQFKLQEHWZHHQWKHÀRRU DQGWKHERWWRPHGJHRIWKHJ\SVXP 0HFKDQLFDO5RXJKLQ x $OOUHWXUQDQGVXSSO\DLUYHQWVDQGDQ\RSHQGXFWZRUNVKRXOGEH WHPSRUDULO\VHDOHGWRSUHYHQWWKHGXFWZRUNDQGDLUKDQGOLQJXQLWV IURPEHLQJFRQWDPLQDWHGZLWKFRQVWUXFWLRQGHEULVRUGXVW 6HDOXQQHFHVVDU\RSHQLQJVLQZDOOVÀRRUVDQGFHLOLQJVWKDW VHSDUDWHFRQGLWLRQHGVSDFHVIURPXQFRQGLWLRQHGVSDFH ([DPSOH,WLVFRPPRQWRSXQFKODUJHKROHVLQÀRRUVWRDOORZ SLSHVDQGZLUHVWRUXQEHWZHHQWKHURRPVDERYHDQGWKH FUDZOVSDFHVRUWXQQHOVEHORZ7KHVHRYHUVL]HGRSHQLQJVFDQ FDXVHWZRVLJQL¿FDQW,$4SUREOHPV$LUWKDWLVFRQWDPLQDWHG ZLWKPROGUDGRQPRLVWXUHDQGSHVWLFLGHVFDQHDVLO\HQWHUWKH URRPVDQGSHVWVVXFKDVURDFKHVRUURGHQWVFDQHQWHUWKH URRPVOHDYLQJEHKLQGRGRUVDQGDOOHUJHQV 5RXJK&DUSHQWU\ x 8VHLQWHULRUJUDGHSO\ZRRGRUZKHDWERDUGIRULQWHULRUXVHV x 6HDODOOH[SRVHGSDUWLFOHERDUGRU0HGLXP'HQVLW\)LEHUERDUG 0')WRHOLPLQDWHDQ\RIIJDVVLQJ +RXVHNHHSLQJ x 8VHYDFXXPVLQVWHDGRIEURRPVWRPDNHFOHDQXSHDVLHUDQG UHGXFHWKHVSUHDGLQJRIGXVW x 3URYLGHZDONRIIPDWVDWLQVLGHGXVWFRQWUROEDUULHUHQWUDQFHV 9DFXXPRUFKDQJHZDONRIIPDWVGDLO\RUPRUHRIWHQDV QHFHVVDU\WRSUHYHQWDFFXPXODWLRQRIGXVW$GGLWLRQDOO\SURYLGH VWLFN\ZDONRIIPDWLPPHGLDWHO\RXWVLGHGXVWFRQWUROEDUULHU HQWUDQFHV x 8VHOHVVWR[LFFOHDQLQJDJHQWV6HH&KDSWHUIRUPDWHULDOV x ,IVROYHQWVFOHDQHUVJDVROLQHRURWKHUSRWHQWLDOO\WR[LFOLTXLGV DUHVSLOOHGRQWRWKHÀRRUFOHDQXSLPPHGLDWHO\WRUHGXFHIXUWKHU FRQWDPLQDWLRQ x ,IDWR[LFVSLOORFFXUVRQHDVLO\UHSODFHDEOHEXLOGLQJPDWHULDO LWPD\EHVDIHVWWRGLVFDUGLWDQGUHSODFHLWZLWKQHZPDWHULDO 2GRUVIURPVLJQL¿FDQWVSLOOVFDQOLQJHUVRPHWLPHVIRU\HDUV FDXVLQJFRPIRUWDQGKHDOWKSUREOHPVIRUIXWXUHRFFXSDQWV ,QGRRU(QYLURQPHQWDO4XDOLW\ x (PHUJLQJ7HFKQRORJ\ 'HVLFFDQW'HKXPLGL¿HU 8VHDGHVLFFDQWGHKXPLGL¿HUWRFRQWUROPRLVWXUH OHYHOVGXULQJLQVWDOODWLRQRILQWHULRU¿QLVKHV $GHVLFFDQWGHKXPLGL¿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³,$4'HVLJQ7RROVIRU6FKRROV´86(QYLURQPHQWDO3URWHFWLRQ $JHQF\KWWSZZZHSDJRYLDTVFKRROGHVLJQ /+DUULPDQ'60)RZOHU³3UHYHQWLQJ0ROGE\.HHSLQJ1HZ &RQVWUXFWLRQ'U\´$6+5$(-RXUQDO ,QGRRU(QYLURQPHQWDO4XDOLW\ &KDSWHU,QGRRU(QYLURQPHQWDO4XDOLW\ &RQYH\LQJ6\VWHPV *RDO7RSUHYHQW,QGRRU$LU4XDOLW\,$4SUREOHPVFDXVHGE\ LQVWDOODWLRQRIHOHYDWRUVDQGFRQYH\LQJV\VWHPV .H\,VVXHV x x x 0ROGJURZWKLQHOHYDWRUVKDIWV 'HEULVEXLOGXSLQHOHYDWRUSLWV 0DWHULDOFKRLFHVLQHOHYDWRUFDEV $FWLRQVDQG0HWKRGV 0ROGJURZWKLQHOHYDWRUVKDIWV x 3URWHFWVKDIWOLQHUIURPPRLVWXUHLQWUXVLRQDQGUHSODFHOLQHU GDPDJHGE\PRLVWXUH x ,QVWDOOUDLQOHDGHUVDQGWHPSRUDU\ZDWHUGDPVDWURRI SHQHWUDWLRQVWRPLQLPL]HPRLVWXUHLQEXLOGLQJ x 6HTXHQFHWKHHOHYDWRUFRQVWUXFWLRQDIWHUURRIDQGHQFORVXUHLV FRPSOHWH 3UHYHQWGHEULVFROOHFWLRQLQHOHYDWRUSLWV x &RQVWUXFWWRHERDUGVDURXQGRSHQLQJVWRSUHYHQWGXVWDQG GHEULVIURPEHLQJEUXVKHGLQWRSLWV 6HDODQGFOHDQSLWVEHIRUHLQVWDOODWLRQRIHOHYDWRUV (OHYDWRUDQG(VFDODWRU&RQVWUXFWLRQ x 6HTXHQFHLQVWDOODWLRQRIHVFDODWRUVDIWHUWDVNVWKDWFUHDWH GXVWVXFKDVLQVWDOODWLRQRIGU\ZDOO'XVWSDUWLFOHVIURPRWKHU WDVNVWKDWIDOOLQWRHVFDODWRUZLOOFDXVHIXWXUHRSHUDWLRQDQG PDLQWHQDQFHSUREOHPV 0DWHULDO6HOHFWLRQ x &KRRVH¿QLVKPDWHULDOVIRUHOHYDWRUFDEVWKDWDUH HQYLURQPHQWDOO\IULHQGO\ZLWKPLQLPDORIIJDVVLQJ x ,QGRRU(QYLURQPHQWDO4XDOLW\ &DVH6WXG\ (VFDODWRU&RQVWUXFWLRQ (VFDODWRU PDLQWHQDQFHLV JUHDWO\LQFUHDVHGE\ FRQVWUXFWLRQGXVW %\PLQLPL]LQJ GXVWJHQHUDWLQJ DFWLYLWLHVGXULQJDQG DIWHULQVWDOODWLRQ RIHOHYDWRUVDQG HVFDODWRUVPDQ\ RSHUDWLRQSUREOHPV DQGPDLQWHQDQFH LVVXHVFDQEH DYRLGHG ZZZHVWHFOWGXNVHUYLFHVKWPO 5HIHUHQFHV ³,$4'HVLJQ7RROVIRU6FKRROV´86(QYLURQPHQWDO3URWHFWLRQ $JHQF\KWWSZZZHSDJRYLDTVFKRROGHVLJQ ,QGRRU(QYLURQPHQWDO4XDOLW\ &KDSWHU,QGRRU(QYLURQPHQWDO4XDOLW\ 0HFKDQLFDO *RDO7RSUHYHQW,QGRRU$LU4XDOLW\,$4SUREOHPVFDXVHGE\WKH LQVWDOODWLRQRIWKHEXLOGLQJ¶VPHFKDQLFDOV\VWHP .H\,VVXHV x x 'XVWFRQWDPLQDWLRQRIGXFWZRUNDQGHTXLSPHQW 0ROGLQGXFWZRUNDQGHTXLSPHQW $FWLRQVDQG0HWKRGV (QVXUHSURSHULQVWDOODWLRQRIDOOHTXLSPHQWWKURXJK FRPPLVVLRQLQJ x 3URSHUO\VHDODOORSHQLQJVLQZDOOVÀRRUVDQGFHLOLQJVWKDW VHSDUDWHFRQGLWLRQHGVSDFHVIURPXQFRQGLWLRQHGVSDFHLH H[KDXVWIDQVWRRXWVLGH 6FKHGXOLQJ x ([SHGLWHLQVWDOODWLRQRIPHFKDQLFDOV\VWHPWRDOORZIRUKXPLGLW\ FRQWURORIEXLOGLQJSULRUWRLQVWDOODWLRQRIGU\ZDOO x &RQGXFWPLQLPXPZHHNÀXVKRXWZLWKQHZ¿OWUDWLRQPHGLD DQGSHUFHQWRXWVLGHDLUDIWHUFRQVWUXFWLRQSULRUWRRFFXSDQF\ RUFRQGXFWEDVHOLQH,$4WHVWLQJFRQVLVWHQWZLWK(3$¶VFXUUHQW 3URWRFROIRU(QYLURQPHQWDO5HTXLUHPHQWV%DVHOLQH,$4DQG 0DWHULDOVIRUWKH5HVHDUFK7ULDQJOH3DUN&DPSXV6HFWLRQ x x x &RQWLQXDOO\FRPPLVVLRQPHFKDQLFDOV\VWHPDVFRQVWUXFWLRQ SURJUHVVHV ,IPHFKDQLFDOV\VWHPLVXVHGGXULQJFRQVWUXFWLRQ¿OWHUV ZLOOQHHGWREHUHSODFHGIUHTXHQWO\GXHWRLQFUHDVHGDLU FRQWDPLQDQWVIURPFRQVWUXFWLRQ ,QGRRU(QYLURQPHQWDO4XDOLW\ 'XFWZRUN x $OOUHWXUQDQGVXSSO\DLUYHQWVDVZHOODVDQ\RSHQGXFWZRUN VKRXOGEHWHPSRUDULO\VHDOHGWRSUHYHQWWKHXQLWVIURPEHLQJ FRQWDPLQDWHGZLWKFRQVWUXFWLRQGXVWRUGHEULV x 6HDODOOGXFWVSOHQXPVGLVWULEXWLRQER[FRQQHFWLRQVGXFW FROODUVUHWXUQDLUGXFWFROODUVDQGDLUVXSSO\UHJLVWHUVWRHQVXUH GLUWGXVWDQGRWKHUGHEULVGRHVQRWHQWHUWKHDLUGLVWULEXWLRQ V\VWHP7KHVHFRQWDPLQDQWVHQKDQFHWKHFKDQFHVIRUPROG JURZWK x 6WRUDJHVKRXOGEHFOHDQDQGGU\ZLWKPLQLPDOH[SRVXUHWRGXVW x &RPSOHWHGZRUNVKRXOGEHFOHDQGU\DQGSURWHFWHGIURPWKH HOHPHQWV x ,QVSHFWGXFWVHFWLRQVWRHQVXUHWKDWWKH\DUHIUHHRIGXVW DQGGHEULVSULRUWRLQVWDOODWLRQ:LSHLQWHUQDOVXUIDFHVRIWKH XQLQVXODWHGGXFWZRUNWRUHPRYHGXVWLPPHGLDWHO\EHIRUH LQVWDOODWLRQ x 7RSUHYHQWWKHHQWU\RIGHEULVLQWRWKHGXFWDOOULVHUVPXVWEH VHDOHG x 8VHGXFWPDVWLFDQGWDSHRQGXFWMRLQWV x &OHDQDLUSOHQXPVEHIRUHFORVLQJWKHPLQLQFOXGLQJDFFHVV ÀRRULQJ x )UHTXHQWUHSODFHPHQWRIDLU¿OWHUVGXULQJFRQVWUXFWLRQ ZLOOSUHYHQWGXVWEXLOGXSZLWKLQWKHGXFWVSULRUWREXLOGLQJ RFFXSDQF\ 3LSLQJ x (QVXUHFRQGHQVLQJOLQHVSURSHUO\GUDLQWRWKHRXWGRRUVRUWR DZDVWHOLQHDVVSHFL¿HGE\WKHPDQXIDFWXUHU x 3URYLGHSURSHUVORSHDQGGUDLQDJHRIGUDLQSDQVXQGHUXQLWDLU FRQGLWLRQHUV3ODFHVZKHUHZDWHUVLWVLQGUDLQSDQVDUHDSULPH HQYLURQPHQWIRUPROGJURZWK x ,QYHVWLJDWHWKHXVHRI89WXEHVDWGUDLQSDQVWRGHFUHDVHWKH ULVNRIPROGDQGEDFWHULDJURZWK x ,QVXODWHFROGFRPSRQHQWVDQGFROGZDWHUSLSHV x (QVXUHSOXPELQJLVHDV\WRLQVSHFWDQGUHSDLU ,QGRRU(QYLURQPHQWDO4XDOLW\ &DVH6WXG\ )LEHUUHLQIRUFHGPDVWLFLVDEHWWHUFKRLFH WKDQGXFWWDSHIRUVHDOLQJWKHMRLQWVLQ GXFWZRUNEHFDXVHLWZRQ¶WSXOODZD\DQG IDOORII ZZZWDXQWRQFRP¿QHKRPHEXLOGLQJSDJHVKDVS 5HIHUHQFHV ³,$4'HVLJQ7RROVIRU6FKRROV´86(QYLURQPHQWDO3URWHFWLRQ $JHQF\KWWSZZZHSDJRYLDTVFKRROGHVLJQ ³'XFW&OHDQOLQHVVIRU1HZ&RQVWUXFWLRQ*XLGHOLQHV´60$&1$ &KDQWLOO\9$ /+DUULPDQ'60)RZOHU³3UHYHQWLQJ0ROGE\.HHSLQJ1HZ &RQVWUXFWLRQ'U\´$6+5$(-RXUQDO :LOVRQ$0ROGLQ%XLOGLQJV(QYLURQPHQWDO%XLOGLQJ1HZV ,QGRRU(QYLURQPHQWDO4XDOLW\ &KDSWHU,QGRRU(QYLURQPHQWDO4XDOLW\ (OHFWULFDO *RDO7RSUHYHQW,QGRRU$LU4XDOLW\,$4SUREOHPVFDXVHGE\ LQVWDOODWLRQRIWKHHOHFWULFDOV\VWHP .H\,VVXHV x x 3URYLGHEDFNXSSRZHU 'XVW¿OWUDWLRQYLDZDOORSHQLQJV $FWLRQVDQG0HWKRGV x x 3URYLGHEDFNXSSRZHUIRUEXLOGLQJYHQWLODWLRQV\VWHPGXULQJ FRQVWUXFWLRQLQSDUWLFXODUGXULQJUHQRYDWLRQSURMHFWV 6HDOXQQHFHVVDU\RSHQLQJVLQZDOOVÀRRUVDQGFHLOLQJVWKDW VHSDUDWHFRQGLWLRQHGVSDFHVIURPXQFRQGLWLRQHGVSDFH 5HIHUHQFHV ³,$4'HVLJQ7RROVIRU6FKRROV´86(QYLURQPHQWDO3URWHFWLRQ $JHQF\KWWSZZZHSDJRYLDTVFKRROGHVLJQ ,QGRRU(QYLURQPHQWDO4XDOLW\ &KDSWHU,QGRRU(QYLURQPHQWDO4XDOLW\ ,QIRUPDWLRQ7HFKQRORJ\,7 *RDO7RSUHYHQW,QGRRU$LU4XDOLW\,$4SUREOHPVFDXVHGE\ LQVWDOODWLRQRIWKHLQIRUPDWLRQWHFKQRORJ\V\VWHPV .H\,VVXHV x x 'XVW¿OWUDWLRQYLDZDOORSHQLQJV 0RLVWXUH $FWLRQVDQG0HWKRGV x x x 6HDOXQQHFHVVDU\RSHQLQJVLQZDOOVÀRRUVDQGFHLOLQJVWKDW VHSDUDWHFRQGLWLRQHGVSDFHVIURPXQFRQGLWLRQHGVSDFH 3URWHFWVHQVRUVGXULQJFRQVWUXFWLRQWRSUHYHQWGXVWRUPRLVWXUH IURPGDPDJLQJVHQVRUV 3URYLGHDQLQWHJUDWHGFRPPLVVLRQLQJSURFHVVIRUDOOFRQWURO V\VWHPVPHFKDQLFDODQGHOHFWULFDOV\VWHPV 5HIHUHQFHV ³,$4'HVLJQ7RROVIRU6FKRROV´86(QYLURQPHQWDO3URWHFWLRQ $JHQF\KWWSZZZHSDJRYLDTVFKRROGHVLJQ ,QGRRU(QYLURQPHQWDO4XDOLW\ &KDSWHU,QGRRU(QYLURQPHQWDO4XDOLW\ (TXLSPHQW *RDO7RSUHYHQW,QGRRU$LU4XDOLW\,$4SUREOHPVUHODWHGWR FRQVWUXFWLRQHTXLSPHQW .H\,VVXHV x x x ([KDXVWIURPHTXLSPHQW 3URWHFWLRQRIOLTXLGV 'XVW $FWLRQVDQG0HWKRGV x x x x x $YRLGXVHRIFRPEXVWLRQHTXLSPHQWLQGRRUV (QJLQHVDQGKHDWHUVWKDWUXQRQJDVROLQHGLHVHONHURVHQH RURWKHUIRVVLOIXHOVVKRXOGQRWEHRSHUDWHGLQGRRUVXQOHVV DEVROXWHO\QHFHVVDU\,IHTXLSPHQWLVXVHGLQVLGHHQVXUH LVRODWLRQDQGVXI¿FLHQWYHQWLODWLRQRIWKHVSDFHWRUHVWULFWDQG UHPRYHFRQWDPLQDQWV 6WRUHOLTXLGIXHOVRXWVLGHWRUHGXFHWKHULVNRIVSLOOVGXULQJ VWRUDJHWUDQVIHURUPL[LQJ3URWHFWOLTXLGVIURPIUHH]LQJ 8VHYDFXXPDVVLVWHGFXWWLQJDQGVDQGLQJHTXLSPHQW 8VHGHVLFFDQWGHKXPLGL¿HUVRUPHFKDQLFDOGHKXPLGL¿HUVLQKRW ZHDWKHUIRUGU\LQJFRQVWUXFWLRQPDWHULDOV 5HIHUHQFHV ³,$4'HVLJQ7RROVIRU6FKRROV´86(QYLURQPHQWDO3URWHFWLRQ $JHQF\KWWSZZZHSDJRYLDTVFKRROGHVLJQ /+DUULPDQ'60)RZOHU³3UHYHQWLQJ0ROGE\.HHSLQJ1HZ &RQVWUXFWLRQ'U\´$6+5$(-RXUQDO ,QGRRU(QYLURQPHQWDO4XDOLW\ &KDSWHU,QGRRU(QYLURQPHQWDO4XDOLW\ )LQLVKHV *RDO7RSUHYHQW,QGRRU$LU4XDOLW\,$4SUREOHPVFDXVHGE\ LQVWDOODWLRQRIWKHLQWHULRU¿QLVKHV .H\,VVXHV x x x 92&VUHOHDVHGGXULQJLQVWDOODWLRQ 'XVWFRQWURO 0RLVWXUHSHQHWUDWLRQ $FWLRQVDQG0HWKRGV 6FKHGXOLQJ x 6FKHGXOHLQVWDOODWLRQRIWR[LFFKHPLFDOVWDUVHDODQWEHIRUH LQVWDOODWLRQRIPDWHULDOVWKDWDEVRUEFKHPLFDOV92&VVXFKDV GU\ZDOOFDUSHWZRRGIXUQLWXUH x 0LQLPL]HRFFXSDQWH[SRVXUHWRLQWHULRUSDLQWLQJE\VFKHGXOLQJ LWGXULQJRIIKRXUVLVRODWLQJWKHVSDFHDQGYHQWLODWLQJWKHDUHD GXULQJDQGDIWHUSDLQWLQJLVFRPSOHWHG 9HQWLODWHZKHQ x x x x x x x x 3HUIRUPLQJDFWLYLWLHVWKDWUHOHDVHODUJHDPRXQWVRI92&V92&V FDQEHDEVRUEHGRQWREXLOGLQJPDWHULDOVDQGEHUHUHOHDVHGLQWR WKHDLUODWHUZKHQWKHEXLOGLQJLVRFFXSLHG ,QVWDOOLQJZHWPDWHULDOVRULIPDWHULDOVKDYHD³ZHWRGRU´2GRUV IURPEXLOGLQJPDWHULDOVDUHWKHUHVXOWRIFKHPLFDOVEHLQJ UHOHDVHGIURPWKHPDWHULDOLQWRWKHDLUVRLIWKHUHLVDQRGRU YHQWLODWH6HH&KDSWHUIRUDOWHUQDWHPDWHULDOV 3DLQWLQJ 6SUHDGLQJÀRRUDGKHVLYHV $SSO\LQJODUJHDPRXQWVRIFDXONVHDODQWVRUFOHDQLQJDJHQWV /DUJHLQVWDOODWLRQVRIFDUSHWRUYLQ\OEDVHGÀRRULQJSURGXFWV &RPSRVLWHZRRGFDELQHWVDQGVKHOYHVLIPDWHULDOVKDYHQRW EHHQFDUHIXOO\VHOHFWHGDQGDLUHGRXWEHIRUHEHLQJXQSDFNDJHG 'XULQJLQVWDOODWLRQRIFDUSHWSDLQWIXUQLVKLQJVDQGRWKHU92& HPLWWLQJSURGXFWVSURYLGHVXSSOHPHQWDOYHQWLODWLRQIRUDWOHDVW KRXUVDIWHUZRUNLVFRPSOHWHG ,QGRRU(QYLURQPHQWDO4XDOLW\ 0DQDJLQJ0RLVWXUH x 'RQRWDSSO\LQWHULRU¿QLVKHVRQGU\ZDOOXQWLOWKHPRLVWXUH FRQWHQWLVEHORZSHUFHQWRQDJ\SVXPPRLVWXUHPHWHURU EHORZSHUFHQWRQDZRRGPHWHU x %HIRUHLQVWDOOLQJ¿QLVKÀRRUPHDVXUHWKHPRLVWXUHFRQWHQWRI FRQFUHWHÀRRUVODEDVVRRQDVWKHEXLOGLQJKDVEHHQFORVHGLQ DQGDVVRRQDVWKHVODEWHPSHUDWXUHFDQEHEURXJKWZLWKLQWKH Û)WRÛ)WHPSHUDWXUHUHTXLUHGIRUPHDVXUHPHQW,IWKH PRLVWXUHFRQWHQWLVH[FHVVLYHWKHDLUDERYHWKHFRQFUHWHVKDOO EHKHOGEHORZSHUFHQW5+XQWLOWKHPDWHULDOLVGU\HQRXJKWR PHHWWKHVSHFL¿FDWLRQHVWDEOLVKHGE\WKHÀRRULQJPDQXIDFWXUHU *HQHUDO&RQVWUXFWLRQ x 8VHOHVVWR[LFFOHDQLQJDJHQWV6HH&KDSWHU x 3URYLGHZDONRIIPDWVDWLQVLGHGXVWFRQWUROEDUULHUHQWUDQFHV 9DFXXPRUFKDQJHZDONRIIPDWVGDLO\RUPRUHRIWHQDV QHFHVVDU\WRSUHYHQWDFFXPXODWLRQRIGXVW$GGLWLRQDOO\SURYLGH VWLFN\ZDONRIIPDWLPPHGLDWHO\RXWVLGHGXVWFRQWUROEDUULHU HQWUDQFHV &DVH6WXG\ 9HQWLODWHZKHQSDLQWLQJ7KLVZLOOVSHHGWKHGU\LQJ SURFHVVHQVXUHDQ\WR[LQVDUHQRWVSUHDGDURXQG WKHEXLOGLQJDQGNHHSZRUNHUVVDIH 3KRWRZZZVKHUZLQZLOOLDPVFRPSSFVXPPHUSURGXFWVKRZFDVHDVS 5HIHUHQFHV ³'5$)7,QGRRU(QYLURQPHQWDO4XDOLW\*XLGDQFHIRU*UHHQ+LJK 3HUIRUPDQFHDQG6XVWDLQDEOH%XLOGLQJV´(QYLURQPHQWDO 3URWHFWLRQ$JHQF\ ³,$4'HVLJQ7RROVIRU6FKRROV´86(QYLURQPHQWDO3URWHFWLRQ $JHQF\KWWSZZZHSDJRYLDTVFKRROGHVLJQ /+DUULPDQ'60)RZOHU³3UHYHQWLQJ0ROGE\.HHSLQJ1HZ &RQVWUXFWLRQ'U\´$6+5$(-RXUQDO ,QGRRU(QYLURQPHQWDO4XDOLW\