Queensland Mining Approvals IndexMining Capital Funds

Data as at 14 September 2026 · from the Queensland EP Act public register

Minerals environmental authority

EPSX03474515 · SUNSHINE (RAVENSWOOD) PTY LTD

Minerals environmental authority EPSX03474515 (SUNSHINE (RAVENSWOOD) PTY LTD), Granted. No PRC plan. Adopts standard conditions EM586 v1.1.

Status
Granted
Holders
SUNSHINE (RAVENSWOOD) PTY LTD
PRC plan
None
Standard conditions
EM586 v1.1
How it was read
Standard conditions by reference
Register
Register record · Instrument PDF

Conditions

This authority adopts standard conditions by reference: EM586 v1.1. The conditions are set out on that page.

Instrument text by page

The instrument's conditions could not be split on their numbering, so its text is shown page by page.

  1. Page 1

    Permit Environmental Protection Act 1994 Environmental authority EPSX03474515 This environmental authority is issued by the administering authority under Chapter 5 of the Environmental Protection Act 1994. Environmental authority number: EPSX03474515 Environmental authority takes effect on 02 December 2019 Environmental authority holder(s) Name(s) Registered address Ukalunda Pty Ltd First Floor 168 Stirling Highway NEDLANDS WA 6009 Australia Environmentally relevant activity and location details Environmentally relevant activity/activities Location(s) EPM26041 Resource Activity, Non-Scheduled, Mining Activity, EPM26304 Exploration Permit Mineral - EPM EPM26152 EPM26303 Resource Activity, Non-Scheduled, Mining Activity, Exploration Permit Mineral - EPM Resource Activity, Non-Scheduled, Mining Activity, Exploration Permit Mineral - EPM Resource Activity, Non-Scheduled, Mining Activity, Exploration Permit Mineral - EPM Additional information for applicants Environmentally relevant activities The description of any environmentally relevant activity (ERA) for which an environmental authority (EA) is issued is a restatement of the ERA as defined by legislation at the time the EA is issued. Where there is any inconsistency between that description of an ERA and the conditions stated by an EA as to the scale, intensity or manner of carrying out an ERA, the conditions prevail to the extent of the inconsistency. An EA authorises the carrying out of an ERA and does not authorise any environmental harm unless a condition stated by the EA specifically authorises environmental harm. _____________________________________________________________________________________________________________

  2. Page 2

    Permit Environmental authority A person carrying out an ERA must also be a registered suitable operator under the Environmental Protection Act 1994 (EP Act). Contaminated land It is a requirement of the EP Act that an owner or occupier of contaminated land give written notice to the administering authority if they become aware of the following: - the happening of an event involving a hazardous contaminant on the contaminated land (notice must be given within 24 hours); or - a change in the condition of the contaminated land (notice must be given within 24 hours); or - a notifiable activity (as defined in Schedule 3) having been carried out, or is being carried out, on the contaminated land (notice must be given within 20 business days); that is causing, or is reasonably likely to cause, serious or material environmental harm. For further information, including the form for giving written notice, refer to the Queensland Government website www.qld.gov.au, using the search term `duty to notify'. Take effect Please note that, in accordance with section 200 of the EP Act, an EA has effect: a) if the authority is for a prescribed ERA and it states that it takes effect on the day nominated by the holder of the authority in a written notice given to the administering authority-on the nominated day; or b) if the authority states a day or an event for it to take effect-on the stated day or when the stated event happens; or c) otherwise-on the day the authority is issued. However, if the EA is authorising an activity that requires an additional authorisation (a relevant tenure for a resource activity, a development permit under the Sustainable Planning Act 2009 or an SDA Approval under the State Development and Public Works Organisation Act 1971), this EA will not take effect until the additional authorisation has taken effect. If this EA takes effect when the additional authorisation takes effect, you must provide the administering authority written notice within 5 business days of receiving notification of the related additional authorisation taking effect. If you have incorrectly claimed that an additional authorisation is not required, carrying out the ERA without the additional authorisation is not legal and could result in your prosecution for providing false or misleading information or operating without a valid environmental authority. _____________________________________________________________________________________________________________

    Waste, Monitoring and reporting
  3. Page 3

    Roslyn Howie Permit Delegate of the administering authority Environmental authority Environmental Protection Act 1994 Enquiries: Date issued: 05 December 2019 Minerals Business Centre Phone: 07 4222 5352 Email: ESCairns@des.qld.gov.au _____________________________________________________________________________________________________________

  4. Page 4

    Permit Environmental authority Obligations under the Environmental Protection Act 1994 In addition to the requirements found in the conditions of this environmental authority, the holder must also meet their obligations under the EP Act, and the regulations made under the EP Act. For example, the holder must comply with the following provisions of the Act: - general environmental duty (section 319) - duty to notify environmental harm (section 320-320G) - offence of causing serious or material environmental harm (sections 437-439) - offence of causing environmental nuisance (section 440) - offence of depositing prescribed water contaminants in waters and related matters (section 440ZG) - offence to place contaminant where environmental harm or nuisance may be caused (section 443) _____________________________________________________________________________________________________________

    Monitoring and reporting
  5. Page 6

    Environmental authority permit EPSX03474515 Conditions of environmental authority Conditions of approval for this environmental authority are the eligibility criteria and standard conditions contained within the attached document(s) entitled: All reasonable steps must be taken to ensure the activity complies with the eligibility criteria and standard conditions. END OF ENVIRONMENTAL AUTHORITY

  6. Page 7

    (OLJLELOLW\ FULWHULD DQG VWDQGDUG FRQGLWLRQV IRUH[SORUDWLRQ DQGPLQHUDOGHYHORSPHQWSURMHFWV-9HUVLRQ 7KLV GRFXPHQW SURYLGHVHOLJLELOLW\ FULWHULD DQG VWDQGDUG FRQGLWLRQVIRU H[SORUDWLRQDQGPLQHUDOGHYHORSPHQW OLFHQFH DFWLYLWLHV(OLJLELOLW\ FULWHULD DUH WR EH XVHG IRU PDNLQJ D VWDQGDUG RU YDULDWLRQ DSSOLFDWLRQ IRU DQ HQYLURQPHQWDODXWKRULW\ 6WDQGDUG FRQGLWLRQV DUH WR EH XVHG LQ DQ HQYLURQPHQWDO DXWKRULW\ VWDQGDUG RU YDULDWLRQDSSOLFDWLRQ

  7. Page 8

    RUZKHUH QHFHVVDU\ DQG GHVLUDEOH RQ DQ HQYLURQPHQWDO DXWKRULW\ VLWH VSHFLILF DSSOLFDWLRQ

  8. Page 9

    (OLJLELOLW\FULWHULD (OLJLELOLW\ FULWHULD DUH FRQVWUDLQWV VHW WR HQVXUH HQYLURQPHQWDO ULVNV DVVRFLDWHG ZLWK WKH RSHUDWLRQ RI WKH HQYLURQPHQWDOO\ UHOHYDQW DFWLYLW\ (5$

  9. Page 10

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

  10. Page 11

    (OLJLELOLW\FULWHULDDQGVWDQGDUGFRQGLWLRQVIRUH[SORUDWLRQDQGPLQHUDOGHYHORSPHQWSURMHFWV 8UDQLXPPLQLQJ 7KH4XHHQVODQG*RYHUQPHQWKDVGHWHUPLQHGWKDWPLQLQJDFWLYLWLHVDVVRFLDWHGZLWKXUDQLXPGRQRWPHHW WKHHOLJLELOLW\FULWHULDIRUWKLVFRGHRIHQYLURQPHQWDOFRPSOLDQFH7KLVGHWHUPLQDWLRQLVEDVHGRQDQ HQYLURQPHQWDOLPSDFWVWDWHPHQW(,6

  11. Page 12

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

  12. Page 13

    (OLJLELOLW\FULWHULDDQGVWDQGDUGFRQGLWLRQVIRUH[SORUDWLRQDQGPLQHUDOGHYHORSPHQWSURMHFWV (OLJLELOLW\FULWHULD D

  13. Page 14

    7KHPLQLQJDFWLYLW\GRHVQRWRUZLOOQRWDWDQ\RQHWLPH FDXVHPRUHWKDQKDRIODQGWREH VLJQLILFDQWO\ GLVWXUEHG E

  14. Page 15

    WKHPLQLQJDFWLYLW\LVQRWRUZLOOQRWEHFDUULHGRXWLQD FDWHJRU\$HQYLURQPHQWDOO\VHQVLWLYH DUHDRUDFDWHJRU\ %HQYLURQPHQWDOO\VHQVLWLYHDUHD F

  15. Page 16

    WKHPLQLQJDFWLYLW\LVQRWRUZLOOQRWEHFDUULHGRXW XQGHUDQHQYLURQPHQWDODXWKRULW\XQGHU ZKLFKHLWKHURI WKHIROORZLQJLVRULVWREHDXWKRULVHG- L DQHQYLURQPHQWDOO\UHOHYDQWDFWLYLW\WRZKLFKD VHFWLRQRIVFKHGXOHRIWKH(QYLURQPHQWDO 3URWHFWLRQ5HJXODWLRQ DSSOLHVDQGIRUZKLFKWKHUHLV DQDJJUHJDWHHQYLURQPHQWDOVFRUH LL DUHVRXUFHDFWLYLW\RWKHUWKDQDPLQLQJDFWLYLW\ WKDWLVDQLQHOLJLEOH(5$ G

  16. Page 17

    WKHPLQLQJDFWLYLW\LVQRWRUZLOOQRWEHFDUULHGRXWLQDVWUDWHJLFHQYLURQPHQWDODUHDXQOHVV- L WKHPLQLQJDFWLYLW\LVDXWKRULVHGXQGHUDQ HQYLURQPHQWDODXWKRULW\IRUDPLQLQJDFWLYLW\UHODWLQJWR DPLQLQJFODLPDQHQYLURQPHQWDODXWKRULW\IRUDPLQLQJDFWLYLW\UHODWLQJWRDQH[SORUDWLRQSHUPLW RUDQHQYLURQPHQWDODXWKRULW\IRUDPLQLQJDFWLYLW\UHODWLQJWRDPLQHUDOGHYHORSPHQWOLFHQFHRU LL WKHPLQLQJDFWLYLW\LQYROYHVDOOXYLDOPLQLQJDQGLVRUZLOOEHFDUULHGRXWDWDSODFHWKDWLVQRWLQD GHVLJQDWHGSUHFLQFWLQDVWUDWHJLFHQYLURQPHQWDODUHDRU LLL WKHPLQLQJDFWLYLW\LQYROYHVFOD\SLWPLQLQJGLPHQVLRQVWRQHPLQLQJKDUGURFNPLQLQJRSDO PLQLQJRUVKDOORZSLWPLQLQJDQGLVRUZLOOEHFDUULHGRXWDWDSODFHWKDWLVQRWLQDGHVLJQDWHG SUHFLQFWLQDVWUDWHJLFHQYLURQPHQWDODUHD H

  17. Page 18

    WKHPLQLQJDFWLYLW\GRHVQRWRUZLOOQRWDWDQ\RQHWLPH FDXVHPRUHWKDQP RIODQGWREH GLVWXUEHGDWD FDPSVLWH I

  18. Page 19

    QRPRUHWKDQP RIDQ\VXEVWDQFHLVRUZLOOEHH[WUDFWHGIURPHDFKNLORPHWUHRIDULYHULQHDUHD DIIHFWHGE\WKHPLQLQJDFWLYLW\LQD\HDU 3DJH RI (65 9HUVLRQ (IIHFWLYH0$5 'HSDUWPHQWRI(QYLURQPHQWDQG+HULWDJH3URWHFWLRQ

  19. Page 20

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

  20. Page 21

    $QDPRXQWWRFRYHUWKHSRWHQWLDOFRVWVWRWKH'HSDUWPHQWRI(QYLURQPHQWDQG+HULWDJH3URWHFWLRQRI UHKDELOLWDWLQJ DUHDVGLVWXUEHGE\PLQLQJDFWLYLWLHV VKRXOGWKHHQYLURQPHQWDODXWKRULW\KROGHUIDLOXUHWRGR VR DQG LL

  21. Page 22

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

  22. Page 23

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

  23. Page 24

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

  24. Page 25

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

  25. Page 26

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

  26. Page 27

    (OLJLELOLW\FULWHULDDQGVWDQGDUGFRQGLWLRQVIRUH[SORUDWLRQDQGPLQHUDOGHYHORSPHQWSURMHFWV 1RWH - 7KHRZQHURURFFXSLHURIDPLQLQJOHDVHPXVWQRWLI\WKHDGPLQLVWHULQJDXWKRULW\LIWKH\EHFRPHDZDUH WKDWD1RWLILDEOH$FWLYLW\OLVWHGLQ6FKHGXOH RIWKH(QYLURQPHQWDO3URWHFWLRQ$FWLVEHLQJFDUULHGRXWRQ WKHODQGZLWKLQGD\VE\JLYLQJQRWLFHWRWKHDGPLQLVWHULQJDXWKRULW\LQWKHDSSURYHGIRUP)RUH[DPSOHDQ H[SORUDWLRQRUPLQHUDOGHYHORSPHQWSURMHFW WKDWJHQHUDWHVZDVWHPDWHULDOVWKDWFRQWDLQKD]DUGRXVFRQWDPLQDQWV PXVWQRWLI\WKHDGPLQLVWUDWLQJDXWKRULW\WKDWWKLVDFWLYLW\LVEHLQJFDUULHGRXW5HIHUWRVHFWLRQRIWKH (QYLURQPHQWDO3URWHFWLRQ$FW 1RWH - )RUGHWDLOHGLQIRUPDWLRQRQWKHPDQDJHPHQWRIDFLGPLQHZDVWHPDWHULDOUHIHUWRWKH-7HFKQLFDO *XLGHOLQHVIRUWKH(QYLURQPHQWDO0DQDJHPHQWRI([SORUDWLRQDQG0LQLQJ LQ4XHHQVODQG-3DUW%-$VVHVVPHQW DQG0DQDJHPHQWRI$FLG'UDLQDJH-DQGWKH-*XLGHOLQHVIRU6DPSOLQJDQG$QDO\VLVRI/RZODQG$FLG6XOIDWH6RLOV $66

  27. Page 28

    LQ4XHHQVODQG- 1DWXUHFRQVHUYDWLRQ $ 7KHKROGHURIWKHHQYLURQPHQWDODXWKRULW\PXVWSUHYHQWWKHVSUHDGRI'HFODUHG3ODQWVE\HQVXULQJWKDWDOO YHKLFOHVDQGPDFKLQHU\DUHDGHTXDWHO\FOHDQHGEHIRUHWDNLQJWKHYHKLFOHVDQGPDFKLQHU\RXWRID'HFODUHG 3ODQW$UHD 1RWH (YHU\SUHFDXWLRQVKRXOGEHWDNHQWRHQVXUHWKHUHLVQRGLVSHUVDORI3DUWKHQLXP ZHHGRUWKHVHHGRI DQ\RWKHUGHFODUHGSODQWZLWKLQWKHPHDQLQJRIWKH/DQG3URWHFWLRQ3HVWDQG6WRFN5RXWH0DQDJHPHQW

  28. Page 29

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

  29. Page 30

    RQWKHPLQLQJWHQHPHQW(5$ :DVWHLQFLQHUDWLRQDQG WKHUPDOWUHDWPHQW DWWKUHVKROG LQFLQHUDWLQJZDVWHYHJHWDWLRQFOHDQSDSHURU FDUGERDUG (5$ %DWWHU\5HF\FOLQJ- RSHUDWLQJDIDFLOLW\IRUUHFHLYLQJDQGUHF\FOLQJRU UHSURFHVVLQJDQ\W\SHRI EDWWHU\DQG 3DJH RI (65 9HUVLRQ (IIHFWLYH0$5 'HSDUWPHQWRI(QYLURQPHQWDQG+HULWDJH3URWHFWLRQ

  30. Page 31

    (OLJLELOLW\FULWHULDDQGVWDQGDUGFRQGLWLRQVIRUH[SORUDWLRQDQGPLQHUDOGHYHORSPHQWSURMHFWV (5$ 7\UH5HF\FOLQJ- RSHUDWLQJD IDFLOLW\RQDFRPPHUFLDO EDVLVIRUUHFHLYLQJDQGUHF\FOLQJRU UHFHLYLQJDQGUHSURFHVVLQJRUPRUHHTXLYDOHQWSDVVHQJHU XQLWVRIW\UHVRUSDUWVRIW\UHVLQD \HDU7KHUHOHYDQWDFWLYLW\GRHVQRWLQFOXGHUHWUHDGLQJW\UHV

  31. Page 32

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

  32. Page 33

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

  33. Page 34

    XVHDEVRUSWLRQWUHQFKHVWUDQVSLUDWLRQEHGVRUVSUD\LUULJDWLRQWRGLVSRVHRIJUH\ZDWHUDQG ORFDWHDOOGLVSRVDODUHDVDWOHDVWPGLVWDQFHIURPDQ\ZDWHUFRXUVHZDWHUZD\JURXQGZDWHUUHFKDUJH DUHDZHWODQGRUODNH 1RWH - :LWKUHJDUGWRRQVLWHZDVWHZDWHUPDQDJHPHQWUHIHUWRWKH(QYLURQPHQWDO3URWHFWLRQ:DWHU

  34. Page 35

    3ROLF\ :DVWHPDQDJHPHQW % 7KHKROGHURIWKHHQYLURQPHQWDODXWKRULW\PXVWQRWGLUHFWO\RULQGLUHFWO\UHOHDVHZDVWHIURPWKHSURMHFWDUHD WRDQ\ZDWHUFRXUVHZDWHUZD\JURXQGZDWHUZHWODQGRUODNH 1RWH :KHQPDQDJLQJZDVWHPDWHULDOVWKHIROORZLQJVWUDWHJ\VKRXOGEHDGRSWHG DYRLGFUHDWLQJH[FHVVZDVWH UHXVHZDVWHPDWHULDOV UHF\FOHZDVWH FUHDWHDQGXWLOLVHHQHUJ\IURP ZDVWH WUHDWZDVWHDQG GLVSRVHRIZDVWHHJSURYLGHUXEELVKFRQWDLQHUVRQVLWH

  35. Page 36

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

  36. Page 37

    (OLJLELOLW\FULWHULDDQGVWDQGDUGFRQGLWLRQVIRUH[SORUDWLRQDQGPLQHUDOGHYHORSPHQWSURMHFWV PDNHWKHSLWVDIHDQGSURWHFWLWIURPVFDYHQJHUV EDFNILOOWKHSLWZKHQWKHOHYHORIUXEELVKLQWKHSLWLVQRWOHVVWKDQPEHORZWKHVXUIDFHDQG VXIILFLHQWO\RYHUILOOWKHSLWWRDOORZIRUVHWWOHPHQW 1RWH- 7KHKROGHURIWKHHQYLURQPHQWDODXWKRULW\PD\GLVSRVHRIOLPLWHGUHJXODWHGZDVWHWRDOLFHQVHG JHQHUDOZDVWHGLVSRVDOIDFLOLW\SURYLGHGWKHDQQXDOYROXPHRIOLPLWHGUHJXODWHGZDVWHGRHVQRWH[FHHGRI WKHDQQXDOYROXPHRIJHQHUDOZDVWHHJW\UHV

  37. Page 38

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

  38. Page 39

    DUHLQVWDOOHGDWJURXQGOHYHODQGPDGH VDIH % :KHQGULOOLQJH[FDYDWLQJRUVDPSOLQJWKHKROGHURIWKHHQYLURQPHQWDODXWKRULW\PXVWHQVXUHWKDWWKHDUHD DQGGXUDWLRQRIGLVWXUEDQFHWRODQGDQGYHJHWDWLRQLVPLQLPLVHG 3DJH RI (65 9HUVLRQ (IIHFWLYH0$5 'HSDUWPHQWRI(QYLURQPHQWDQG+HULWDJH3URWHFWLRQ

  39. Page 40

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

  40. Page 41

    XVHZDVWH ZDWHUIRUGXVWVXSSUHVVLRQ GLVFKDUJH ZDVWHZDWHURQWREHQLJQRYHUEXUGHQRUZDVWHURFNKHDSVIRUDEVRUSWLRQDQG GLVFKDUJH ZDVWHZDWHUWRDQHYDSRUDWLRQSRQG 1RWH :LWKUHJDUGWRWKHRQVLWHPDQDJHPHQWRIZDWHUUHIHUWRWKH(QYLURQPHQWDO3URWHFWLRQ:DWHU

  41. Page 42

    3ROLF\ 3DJH RI (65 9HUVLRQ (IIHFWLYH0$5 'HSDUWPHQWRI(QYLURQPHQWDQG+HULWDJH3URWHFWLRQ

  42. Page 43

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

  43. Page 44

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

  44. Page 45

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

  45. Page 46

    RU FDSSHGWRDOORZIRUIXWXUHFRQYHUVLRQLQWRDFRQWUROOHGDUWHVLDQERUHE\DOLFHQVHGZDWHUERUHGULOOHURU FRQYHUWHGLQWRDFRQWUROOHGDUWHVLDQERUHE\DOLFHQVHGZDWHUERUHGULOOHUSURYLGHGWKDW D

  46. Page 48

    WKHH[SORUHUSURYLGHVGHWDLOVRIWKHDJUHHPHQWDQGWKHGULOOKROHWRWKH'HSDUWPHQWRI1DWXUDO 3DJH RI (65 9HUVLRQ (IIHFWLYH0$5 'HSDUWPHQWRI(QYLURQPHQWDQG+HULWDJH3URWHFWLRQ

  47. Page 49

    (OLJLELOLW\FULWHULDDQGVWDQGDUGFRQGLWLRQVIRUH[SORUDWLRQDQGPLQHUDOGHYHORSPHQWSURMHFWV 5HVRXUFHVDQG0LQHVZLWKLQGD\VRIREWDLQLQJWKHODQGRZQHU-VDJUHHPHQW 1RWH 3URYLVLRQVDSSO\XQGHUWKH:DWHU$FWZLWKUHVSHFWWRWKHXWLOLVDWLRQRIJURXQGZDWHUIURP ERUHKROHVLQ3URFODLPHG$UHDVZKLFKLQFOXGH DOO$UWHVLDQ%DVLQDUHDV

  48. Page 50

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

  49. Page 51

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

  50. Page 52

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

  51. Page 53

    1RWH 9HJHWDWLRQXVHGWRSURYLGHHURVLRQSURWHFWLRQDQGVWDELOLVHGLVWXUEHGDUHDVLQWKHVKRUWWHUPVKRXOG EHFRPSULVHGRIVWHULOHVKRUWOLYHGVSHFLHVHJDFRYHUFURS

  52. Page 54

    +RZHYHUWKHORQJWHUPDLPRIUHYHJHWDWLQJDQ\ 3DJH RI (65 9HUVLRQ (IIHFWLYH0$5 'HSDUWPHQWRI(QYLURQPHQWDQG+HULWDJH3URWHFWLRQ

  53. Page 55

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

  54. Page 56

    DQGD FRPSOLDQFHVWDWHPHQW SULRUWRWKH FDQFHOODWLRQRUH[SLU\RIWKHPLQLQJWHQHPHQW7KHVXUUHQGHURIWKHHQYLURQPHQWDODXWKRULW\ZLOOQRWEHJUDQWHG XQWLOWKHDGPLQLVWUDWLQJDXWKRULW\KDVDFFHSWHGWKH)55 DQGWKHFRPSOLDQFHVWDWHPHQW 3DJH RI (65 9HUVLRQ (IIHFWLYH0$5 'HSDUWPHQWRI(QYLURQPHQWDQG+HULWDJH3URWHFWLRQ

  55. Page 57

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

  56. Page 58

    DQ DFW WKDW FDXVHVVHULRXV RU PDWHULDO HQYLURQPHQWDO KDUP RU DQ HQYLURQPHQWDO QXLVDQFH E

  57. Page 60

    D GHSRVLW RI D FRQWDPLQDQW RU UHOHDVH RI VWRUPZDWHU UXQRII PHQWLRQHG LQ VHFWLRQ =*0RUH LQIRUPDWLRQ LV DYDLODEOH RQ WKH 'HSDUWPHQWRI (QYLURQPHQW DQG +HULWDJH 3URWHFWLRQ ZHEVLWH ZZZHKSTOGJRYDX 'XW\ WR QRWLI\ 6HFWLRQ RI WKH (QYLURQPHQWDO 3URWHFWLRQ $FW H[SODLQVWKH GXW\ WR QRWLI\ 7KH GXW\ WRQRWLI\ DSSOLHV WR DOO SHUVRQV DQG UHTXLUHV D SHUVRQ RUFRPSDQ\ WR JLYH QRWLFH ZKHUH VHULRXV RUPDWHULDO HQYLURQPHQWDO KDUP LVFDXVHG RU WKUHDWHQHG 1RWLFH PXVW EH JLYHQ RI WKH HYHQW LWV QDWXUH DQG WKH FLUFXPVWDQFHVLQ ZKLFK WKH HYHQW KDSSHQHG 1RWLILFDWLRQ FDQ EH YHUEDO ZULWWHQ RU E\ SXEOLF QRWLFH GHSHQGLQJ RQ ZKR LVQRWLI\LQJ DQG EHLQJ QRWLILHG 7KH GXW\ WR QRWLI\ DULVHV ZKHUH D SHUVRQ FDUULHV RXW DFWLYLWLHV RU EHFRPHV DZDUH RI DQ DFW RI DQRWKHU SHUVRQ DULVLQJ IURP RUFRQQHFWHGWR WKRVH DFWLYLWLHV ZKLFK FDXVHVRU WKUHDWHQV VHULRXV RUPDWHULDO HQYLURQPHQWDO KDUP ZKLOH FDUU\LQJ RXW DFWLYLWLHV D SHUVRQ EHFRPHV DZDUH RI WKH KDSSHQLQJ RI RQH RU ERWK RI WKH IROORZLQJHYHQWV R WKH DFWLYLW\ QHJDWLYHO\ DIIHFWV RU LV UHDVRQDEO\ OLNHO\ WR QHJDWLYHO\ DIIHFW

  58. Page 61

    WKH ZDWHU TXDOLW\ RI DQ DTXLIHU R WKH DFWLYLW\ KDV FDXVHG WKH XQDXWKRULVHG FRQQHFWLRQ RI RU PRUH DTXLIHUV )RU PRUH LQIRUPDWLRQ RQ WKH GXW\ WR QRWLI\ UHTXLUHPHQWV UHIHU WR WKH GHSDUWPHQW-V *XLGHOLQH 'XW\WR QRWLI\ RIHQYLURQPHQWDO KDUP (0

  59. Page 62

    1RWLILDEOH DFWLYLWLHV ,W LV D UHTXLUHPHQW XQGHU WKH(QYLURQPHQWDO 3URWHFWLRQ $FW WKDW LI DQ RZQHU RU RFFXSLHU RI ODQG EHFRPHVDZDUH WKDW D 1RWLILDEOH $FWLYLW\ DV GHILQHG E\ 6FKHGXOH RI WKH(QYLURQPHQWDO 3URWHFWLRQ $FW

  60. Page 63

    LV EHLQJ FDUULHG RXW RQ WKH ODQG RU WKDW WKH ODQG KDV EHHQ DIIHFWHG E\ D KD]DUGRXV FRQWDPLQDQW WKH\ PXVW ZLWKLQ EXVLQHVVGD\VDIWHU EHFRPLQJ VRDZDUH JLYH QRWLFH WR WKH DGPLQLVWHULQJ DXWKRULW\ 3DJH RI (65 9HUVLRQ (IIHFWLYH0$5 'HSDUWPHQWRI(QYLURQPHQWDQG+HULWDJH3URWHFWLRQ

  61. Page 64

    (OLJLELOLW\FULWHULDDQGVWDQGDUGFRQGLWLRQVIRUH[SORUDWLRQDQGPLQHUDOGHYHORSPHQWSURMHFWV 6RPHUHOHYDQWRIIHQFHVXQGHUWKH(QYLURQPHQWDO3URWHFWLRQ$FW 1RQFRPSOLDQFH ZLWK D FRQGLWLRQ RI DQ HQYLURQPHQWDO DXWKRULW\ VHFWLRQ

  62. Page 65

    6HFWLRQ RI WKH (QYLURQPHQWDO 3URWHFWLRQ $FW UHTXLUHV WKDW D SHUVRQ ZKR LV WKH KROGHURI RU LV DFWLQJ XQGHU DQ HQYLURQPHQWDO DXWKRULW\ PXVW QRW ZLOIXOO\ FRQWUDYHQH RU FRQWUDYHQH D FRQGLWLRQ RI WKH DXWKRULW\ (QYLURQPHQWDO DXWKRULW\ KROGHU UHVSRQVLEOH IRU HQVXULQJ FRQGLWLRQV FRPSOLHG ZLWK VHFWLRQ

  63. Page 66

    6HFWLRQ RI WKH (QYLURQPHQWDO 3URWHFWLRQ $FW UHTXLUHV WKDW WKH KROGHU RI DQ HQYLURQPHQWDO DXWKRULW\ PXVW HQVXUH HYHU\RQH DFWLQJ XQGHU WKH DXWKRULW\ FRPSOLHV ZLWK WKH FRQGLWLRQV RI WKH DXWKRULW\ ,I DQRWKHU SHUVRQ DFWLQJ XQGHU WKH DXWKRULW\ FRPPLWV DQ RIIHQFH DJDLQVW VHFWLRQ WKH KROGHU DOVR FRPPLWV DQ RIIHQFH QDPHO\ WKH RIIHQFH RI IDLOLQJ WR HQVXUH WKH RWKHU SHUVRQ FRPSOLHV ZLWK WKH FRQGLWLRQV &DXVLQJ VHULRXV RU PDWHULDO HQYLURQPHQWDO KDUP VHFWLRQV -

  64. Page 67

    0DWHULDO HQYLURQPHQWDO KDUP LV HQYLURQPHQWDO KDUP WKDW LV QRW WULYLDO RU QHJOLJLEOH LQ QDWXUH ,W PD\ EH JUHDW LQ H[WHQW RU FRQWH[W RU LW PD\ FDXVH DFWXDO RU SRWHQWLDO ORVV RU GDPDJH WR SURSHUW\ 7KH GLIIHUHQFH EHWZHHQ PDWHULDO DQG VHULRXV KDUP UHODWHV WR WKH FRVWV RIGDPDJHV RU WKH FRVWV UHTXLUHG WR HLWKHU SUHYHQW RU PLQLPLVH WKH KDUP RU WR UHKDELOLWDWH WKH HQYLURQPHQW6HULRXV HQYLURQPHQWDO KDUP PD\ KDYH LUUHYHUVLEOH RU ZLGHVSUHDG HIIHFWV RU LW PD\ EH FDXVHG LQ DQ DUHD RI KLJK FRQVHUYDWLRQ VLJQLILFDQFH 6HULRXV RU PDWHULDO HQYLURQPHQWDO KDUP H[FOXGHV HQYLURQPHQWDO QXLVDQFH &DXVLQJ HQYLURQPHQWDO QXLVDQFH VHFWLRQ

  65. Page 68

    (QYLURQPHQWDO QXLVDQFH LV XQUHDVRQDEOH LQWHUIHUHQFH ZLWK DQ HQYLURQPHQWDO YDOXH FDXVHG E\ DHURVROV IXPHV OLJKW QRLVH RGRXU SDUWLFOHV RUVPRNH ,W PD\ DOVR LQFOXGH DQ XQKHDOWK\ RIIHQVLYH RU XQVLJKWO\ FRQGLWLRQ EHFDXVH RI FRQWDPLQDWLRQ 'HSRVLWLQJ D SUHVFULEHG ZDWHU FRQWDPLQDQW LQ ZDWHUV VHFWLRQ =*

  66. Page 69

    3UHVFULEHG FRQWDPLQDQWV LQFOXGH D ZLGH YDULHW\RI FRQWDPLQDQWV OLVWHG LQ 6FKHGXOH RI WKH(QYLURQPHQWDO 3URWHFWLRQ $FW ,W LV \RXU UHVSRQVLELOLW\ WR HQVXUH WKDW SUHVFULEHG FRQWDPLQDQWV DUH QRW OHIW LQ D SODFH ZKHUH WKH\ PD\ RU GR HQWHU D ZDWHUZD\ WKH RFHDQ RU D VWRUPZDWHU GUDLQ 7KLV LQFOXGHV PDNLQJ VXUH WKDW VWRUPZDWHU IDOOLQJ RQ RU UXQQLQJ DFURVV \RXU VLWH GRHV QRW OHDYH WKH VLWH FRQWDPLQDWHG :KHUH VWRUPZDWHU FRQWDPLQDWLRQ RFFXUV \RX PXVW HQVXUH WKDW LW LV WUHDWHG WR UHPRYH FRQWDPLQDQWV <RX VKRXOG DOVR FRQVLGHU ZKHUH DQG KRZ \RX VWRUH PDWHULDO XVHG LQ \RXUSURFHVVHV RQVLWH WR UHGXFH WKH FKDQFH RI ZDWHU FRQWDPLQDWLRQ 3ODFLQJ D FRQWDPLQDQW ZKHUH HQYLURQPHQWDO KDUP RU QXLVDQFH PD\ EH FDXVHG VHFWLRQ

  67. Page 70

    $ SHUVRQ PXVW QRW FDXVH RU DOORZ D FRQWDPLQDQW WR EH SODFHG LQ D SRVLWLRQ ZKHUH LW FRXOG UHDVRQDEO\ EH H[SHFWHG WR FDXVH VHULRXV RU PDWHULDO HQYLURQPHQWDO KDUP RU HQYLURQPHQWDO QXLVDQFH 6RPHUHOHYDQWRIIHQFHVXQGHUWKH:DVWH5HGXFWLRQ DQG5HF\FOLQJ$FW /LWWHULQJ VHFWLRQ

  68. Page 71

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

  69. Page 73

    DW D SODFH ,OOHJDO GXPSLQJ FDQ DOVR LQFOXGH DEDQGRQHG YHKLFOHV 3DJH RI (65 9HUVLRQ (IIHFWLYH0$5 'HSDUWPHQWRI(QYLURQPHQWDQG+HULWDJH3URWHFWLRQ

  70. Page 74

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

  71. Page 75

    $FW 3HWUROHXP $FW 4XHHQVODQG +HULWDJH $FW 6XVWDLQDEOH 3ODQQLQJ $FW :DWHU 6XSSO\ 6DIHW\ DQG 5HOLDELOLW\

  72. Page 76

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

  73. Page 77

    (OLJLELOLW\FULWHULDDQGVWDQGDUGFRQGLWLRQVIRUH[SORUDWLRQDQGPLQHUDOGHYHORSPHQWSURMHFWV $SSHQGL['HILQLWLRQV 7HUP 'HILQLWLRQ $GPLQLVWHULQJDXWKRULW\ 0HDQV D

  74. Page 78

    IRUDPDWWHUWKHDGPLQLVWUDWLRQDQGHQIRUFHPHQWRIZKLFKKDVEHHQ GHYROYHGWRDORFDOJRYHUQPHQWXQGHUVHFWLRQRIWKH (QYLURQPHQWDO3URWHFWLRQ$FWRU E

  75. Page 79

    IRUDOORWKHUPDWWHUV- WKH&KLHI([HFXWLYHRIWKH'HSDUWPHQWRI (QYLURQPHQWDQG+HULWDJH3URWHFWLRQRU F

  76. Page 80

    DQRWKHU6WDWH*RYHUQPHQW'HSDUWPHQW$XWKRULW\6WRUDJH2SHUDWRU %RDUGRU7UXVWZKR-VUROHLVWRDGPLQLVWHUSURYLVLRQVXQGHURWKHU HQDFWHGOHJLVODWLRQ $QQXDOH[FHHGHQFHSUREDELOLW\ )RUDJLYHQUDLQIDOOHYHQWWKH$(3LVWKHSUREDELOLW\WKDWWKHHYHQWZLOOEH $(3

  77. Page 82

    RUDSHUFHQWDJH $SSURYHGIRUP 0HDQVDIRUPDSSURYHGE\WKHDGPLQLVWUDWLQJDXWKRULW\ $UFKDHRORJLFDOVLWH $VLWHWKDWKDVSK\VLFDO HYLGHQFHRIWKHSDVWZKLFKKDVWKHSRWHQWLDOWR LQFUHDVHRXUNQRZOHGJHRIHDUOLHUKXPDQRFFXSDWLRQDFWLYLWLHVDQGHYHQWV $UWHVLDQGULOOKROH $QH[SORUDWLRQGULOOKROHIURPZKLFKZDWHUIUHHO\IORZVDWDUDWHRIJUHDWHU WKDQ/KRXUIRUDWOHDVWGD\VDIWHUEHLQJGULOOHG %DQNV 7KHIHDWXUHZKLFKFRQILQHVPDMRUIORZVZLWKLQDZDWHUFRXUVH7KH\DUH %XQG VWHHSHUWKDQDWHUUDFHDQGDUHJHQHUDOO\RIDVORSHJUHDWHUWKDQRQ RXWHUEHQGV5HIHUWR)LJXUH- &URVV6HFWLRQWKURXJKD:DWHUFRXUVH D

  78. Page 86

    DVWUXFWXUH WRSUHYHQWRUUHGXFHVRLOHURVLRQ &DPSVLWH 7KHDUHDHQFRPSDVVLQJDQ\GZHOOLQJDPHQLWLHVHJWRLOHWEORFNSRZHU JHQHUDWRU

  79. Page 87

    VHZDJHRUJHQHUDOZDVWHGLVSRVDOIDFLOLW\DQGLQFOXGHVWKHRIILFH DUHDDQGYHKLFOHSDUNLQJDUHDVDVVRFLDWHGZLWKDWHPSRUDU\RUSHUPDQHQW PLQLQJFDPS &RQWDPLQDQW 7KH(QYLURQPHQWDO3URWHFWLRQ$FW GHILQHVXQGHU6HFWLRQD FRQWDPLQDQWDV D

  80. Page 93

    DFRPELQDWLRQ RIFRQWDPLQDQWV &RQWDPLQDWLRQ 6HFWLRQ RIWKH(QYLURQPHQWDO3URWHFWLRQ$FW GHILQHVFRQWDPLQDWLRQ RIWKHHQYLURQPHQWLV WKHUHOHDVHZKHWKHUE\DFWRURPLVVLRQ

  81. Page 94

    RID FRQWDPLQDQWLQWRWKHHQYLURQPHQW 3DJH RI (65 9HUVLRQ (IIHFWLYH0$5 'HSDUWPHQWRI(QYLURQPHQWDQG+HULWDJH3URWHFWLRQ

  82. Page 95

    (OLJLELOLW\FULWHULDDQGVWDQGDUGFRQGLWLRQVIRUH[SORUDWLRQDQGPLQHUDOGHYHORSPHQWSURMHFWV &RQWDPLQDWHGODQG 6FKHGXOH RIWKH(QYLURQPHQWDO3URWHFWLRQ$FW GHILQHVFRQWDPLQDWHG &RQWDPLQDWHGODQGUHJLVWHU ODQGDVODQGFRQWDPLQDWHGE\DKD]DUGRXVFRQWDPLQDQW6HHEHORZIRUD &RQWRXUEDQNV GHILQLWLRQRIKD]DUGRXVFRQWDPLQDQW

  83. Page 96

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

  84. Page 98

    $FW ,QUHIHUHQFHWRWUHHVDQGRUVKUXEVLWPHDQVWKHQXPEHURIWUHHVRUVKUXEV LQDVSHFLILHGDUHDHJWUHHVSHUVTXDUHNLORPHWUH

  85. Page 100

    LWPHDQVWKHSHUFHQWDJH RIVXUIDFHDUHDFRYHUHGE\DSDUWLFXODUVSHFLHV ,VDQRPLQDWHGVLWHVHOHFWHGDQGPDQDJHGWRPLQLPLVHFRQWDPLQDWLRQRI ODQGRUZDWHUZKHUHWKHPDMRULW\RIVHUYLFHVRUPDLQWHQDQFHRIPDFKLQHU\ RUSODQWLVWREHFRQGXFWHG $Q\DUHDWKDWKDVKDGLWVQDWXUDOVWDWHDOWHUHGE\WKHDFWLRQRULQWHUIHUHQFH RIFDUU\LQJRXWDQDFWLYLW\DVVRFLDWHGZLWKWKHH[SORUDWLRQSURMHFW 6HFWLRQ RIWKH(QYLURQPHQWDO3URWHFWLRQ$FW GHILQHVWKHHQYLURQPHQW DV D

  86. Page 103

    WKHTXDOLWLHVDQGFKDUDFWHULVWLFVRIORFDWLRQVSODFHVDQGDUHDV KRZHYHUODUJHRUVPDOOWKDWFRQWULEXWHWRWKHLUELRORJLFDOGLYHUVLW\DQG LQWHJULW\LQWULQVLFRUDWWULEXWHGVFLHQWLILFYDOXHRULQWHUHVWDPHQLW\ KDUPRQ\DQGVHQVHRIFRPPXQLW\DQG G

  87. Page 104

    WKHVRFLDOHFRQRPLFDHVWKHWLFDQGFXOWXUDOFRQGLWLRQVWKDWDIIHFWRU DUHDIIHFWHGE\WKLQJVPHQWLRQHGLQSDUDJUDSKVD

  88. Page 106

    0HDQVDOLFHQFHRUDSSURYDOLVVXHGE\WKHDGPLQLVWUDWLQJDXWKRULW\XQGHU WKH(QYLURQPHQWDO3URWHFWLRQ$FW 0HDQVWKHUHJLVWHUNHSWE\WKHDGPLQLVWUDWLQJDXWKRULW\XQGHUVHFWLRQ RI WKH(QYLURQPHQWDO3URWHFWLRQ$FW 3DJH RI (65 9HUVLRQ (IIHFWLYH0$5 'HSDUWPHQWRI(QYLURQPHQWDQG+HULWDJH3URWHFWLRQ

  89. Page 107

    (OLJLELOLW\FULWHULDDQGVWDQGDUGFRQGLWLRQVIRUH[SORUDWLRQDQGPLQHUDOGHYHORSPHQWSURMHFWV (QYLURQPHQWDOQXLVDQFH 6HFWLRQ RIWKH(QYLURQPHQWDO3URWHFWLRQ$FW GHILQHVHQYLURQPHQWDO QXLVDQFHDV-XQUHDVRQDEOHLQWHUIHUHQFHRUOLNHO\LQWHUIHUHQFHZLWKDQ HQYLURQPHQWDOYDOXH-FDXVHGE\ D

  90. Page 111

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

  91. Page 112

    DTXDOLW\ RUSK\VLFDOFKDUDFWHULVWLFRIWKHHQYLURQPHQWWKDWLVFRQGXFLYH WRHFRORJLFDOKHDOWKRUSXEOLFDPHQLW\RUVDIHW\RU E

  92. Page 113

    DQRWKHU TXDOLW\RIWKHHQYLURQPHQWLGHQWLILHGDQGGHFODUHGWREHDQ HQYLURQPHQWDOYDOXHXQGHUDQHQYLURQPHQWDOSURWHFWLRQSROLF\RU UHJXODWLRQHJZDWHUVXLWDEOHIRUVZLPPLQJLQRUGULQNLQJ

  93. Page 114

    (WKQRJUDSKLFVLWH $QDUFKDHRORJLFDOVLWHRISDUWLFXODULPSRUWDQFHWR WKHVWXG\RIDFXOWXUDO JURXS )LQDOUHKDELOLWDWLRQUHSRUW 0HDQVDILQDOUHKDELOLWDWLRQUHSRUWSUHSDUHGXQGHUVHFWLRQ RIWKH (QYLURQPHQWDO3URWHFWLRQ$FW7KHUHSRUWDVVHVVHVWKHH[WHQWWRZKLFK WKHVWDQGDUGHQYLURQPHQWDOFRQGLWLRQVDQGDQ\DGGLWLRQDOFRQGLWLRQVRIWKH HQYLURQPHQWDODXWKRULW\KDYHEHHQPHW )LQDQFLDODVVXUDQFH 0HDQVDVHFXULW\GHSRVLWHLWKHUFDVKRUDEDQNJXDUDQWHHWKDWLVKHOGE\ WKHDGPLQLVWUDWLQJDXWKRULW\WRFRYHUWKHSRWHQWLDO D

  94. Page 117

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

  95. Page 118

    (OLJLELOLW\FULWHULDDQGVWDQGDUGFRQGLWLRQVIRUH[SORUDWLRQDQGPLQHUDOGHYHORSPHQWSURMHFWV GULQNLQJZDWHU 4XDOLW\ +D]DUGRXVFRQWDPLQDQW 6FKHGXOH RIWKH(QYLURQPHQWDO3URWHFWLRQ$FWGHILQHVD KD]DUGRXV +LVWRULFDOVLWH FRQWDPLQDQWDV-DFRQWDPLQDQWWKDWLILPSURSHUO\WUHDWHGVWRUHGGLVSRVHG ,QIUDVWUXFWXUH RIRURWKHUZLVHPDQDJHGLVOLNHO\WRFDXVHVHULRXVRUPDWHULDO /DNH HQYLURQPHQWDOKDUPEHFDXVHRI /DQGRZQHU D

  96. Page 119

    LWVTXDQWLW\FRQFHQWUDWLRQDFXWHRUFKURQLFWR[LFHIIHFWV /LFHQVHGJHQHUDOZDVWH FDUFLQRJHQLFLW\WHUDWRJHQLFLW\PXWDJHQLFLW\FRUURVLYHQHVV GLVSRVDOIDFLOLW\ H[SORVLYHQHVVUDGLRDFWLYLW\IODPPDELOLW\RU /LPLWHGUHJXODWHGZDVWH E

  97. Page 120

    LWVSK\VLFDOFKHPLFDORULQIHFWLRXVFKDUDFWHULVWLFVHJVSLOOVRI PHUFXU\F\DQLGHSHWUROGLHVHORURLO

  98. Page 121

    - $VLWHFRQWDLQLQJREMHFWVIURPWKHSDVW WKDWDOORZVWKHVWXG\RIWKHZD\ SHRSOHOLYHGDQGZRUNHGDWWKDWSODFHLQWKHSDVW 3URMHFWLQIUDVWUXFWXUHLQFOXGHVURDGVWUDFNVEULGJHVFXOYHUWVGDPVERUHV EXLOGLQJVIL[HGPDFKLQHU\KDUGVWDQGDUHDVSLSHOLQHVSRZHUOLQHVDLUVWULSV KHOLSDGVHWFZKLFKDUHFRQVWUXFWHGRULQVWDOOHGVSHFLILFDOO\IRUWKHSURMHFW $QDWXUDORUDUWLILFLDOERG\RIZDWHUHLWKHUSHUPDQHQWRULQWHUPLWWHQW 6FKHGXOHRIWKH(QYLURQPHQWDO3URWHFWLRQ$FW GHILQHVWKHRZQHURI WKHODQGDV- 7KH-RZQHU-RIODQGLV- D

  99. Page 122

    IRUIUHHKROGODQG-WKHSHUVRQUHFRUGHGLQWKHIUHHKROGODQG UHJLVWHUDVWKHSHUVRQHQWLWOHGWRWKHIHHVLPSOHLQWHUHVWLQWKH ODQGRU E

  100. Page 123

    IRUODQGKHOGXQGHUDOHDVHOLFHQFHRUSHUPLWXQGHUDQ$FW-WKH SHUVRQZKRKROGVWKHOHDVHOLFHQFHRUSHUPLWRU F

  101. Page 125

    IRU$ERULJLQDOODQGXQGHUWKH$ERULJLQDO/DQG$FW-WKH SHUVRQVWRZKRPWKHODQGKDVEHHQWUDQVIHUUHGRUJUDQWHGRU H

  102. Page 126

    IRU7RUUHV6WUDLW,VODQGHUODQGXQGHUWKH7RUUHV6WUDLW,VODQGHU /DQG$FW-WKHSHUVRQVWRZKRPWKHODQGKDVEHHQ WUDQVIHUUHGRUJUDQWHGRU I

  103. Page 128

    -HDFKUHJLVWHUHGQDWLYHWLWOHSDUW\LQ UHODWLRQWRWKHODQG $OVRDPRUWJDJHHRIODQGLVWKHRZQHURIWKHODQGLI- D

  104. Page 129

    WKHPRUWJDJHHLVDFWLQJDVDPRUWJDJHHLQSRVVHVVLRQRIWKH ODQGDQGKDVWKHH[FOXVLYHPDQDJHPHQWDQGFRQWURORIWKH ODQGRU E

  105. Page 130

    WKHPRUWJDJHHRUDSHUVRQDSSRLQWHGE\WKHPRUWJDJHHLVLQ SRVVHVVLRQRIWKHODQGDQGKDVWKHH[FOXVLYHPDQDJHPHQWDQG FRQWURORIWKHODQG $VLWHDXWKRULVHGE\WKHDGPLQLVWUDWLQJDXWKRULW\WRUHFHLYHJHQHUDOZDVWHRU OLPLWHGUHJXODWHGZDVWHHJDUXEELVKGXPS

  106. Page 131

    6FKHGXOH RIWKH(QYLURQPHQWDO3URWHFWLRQ5HJXODWLRQ GHILQHV OLPLWHGUHJXODWHGZDVWH7KHRQO\OLPLWHGUHJXODWHGZDVWHVUHOHYDQWWR 3DJH RI (65 9HUVLRQ (IIHFWLYH0$5 'HSDUWPHQWRI(QYLURQPHQWDQG+HULWDJH3URWHFWLRQ

  107. Page 132

    (OLJLELOLW\FULWHULDDQGVWDQGDUGFRQGLWLRQVIRUH[SORUDWLRQDQGPLQHUDOGHYHORSPHQWSURMHFWV 0DWHULDOHQYLURQPHQWDOKDUP PLQLQJSURMHFWVDUH DVEHVWRVDQGW\UHV 0LQH 6HFWLRQRIWKH(QYLURQPHQWDO3URWHFWLRQ$FW GHILQHVPDWHULDO HQYLURQPHQWDOKDUPDV PDWHULDOHQYLURQPHQWDOKDUPLVHQYLURQPHQWDOKDUPRWKHUWKDQ HQYLURQPHQWDOQXLVDQFH

  108. Page 135

    WKDWFDXVHVDFWXDORUSRWHQWLDOORVVRUGDPDJHWRSURSHUW\RIDQ DPRXQWRIRUDPRXQWVWRWDOOLQJPRUHWKDQWKHWKUHVKROG DPRXQWEXWOHVVWKDQWKHPD[LPXPDPRXQWRU F

  109. Page 136

    WKDWUHVXOWVLQFRVWV RIPRUHWKDQWKHWKUHVKROGDPRXQWEXWOHVV WKDQWKHPD[LPXPDPRXQWEHLQJLQFXUUHGLQWDNLQJDSSURSULDWH DFWLRQWR- L SUHYHQWRUPLQLPLVHWKHKDUPDQG LL UHKDELOLWDWHRUUHVWRUHWKHHQYLURQPHQWWRLWVFRQGLWLRQEHIRUH WKHKDUP ,QWKLVVHFWLRQ- -PD[LPXPDPRXQW-PHDQVWKHWKUHVKROGDPRXQWIRUVHULRXVHQYLURQPHQWDO KDUP -WKUHVKROGDPRXQW-PHDQVRULIDJUHDWHUDPRXQWLVSUHVFULEHGE\ UHJXODWLRQWKHJUHDWHUDPRXQW 6HFWLRQ$RIWKH0LQHUDO5HVRXUFHV$FWGHILQHVPLQLQJDV-

  110. Page 140

    GLVSRVLQJRIPLQHUDOLQFRQQHFWLRQZLWKRUZDVWHVXEVWDQFHV UHVXOWLQJIURPWKHZLQQLQJRUH[WUDFWLRQ

  111. Page 142

    H[WUDFWLQJLQFOXGHVWKHSK\VLFDOFKHPLFDO HOHFWULFDOPDJQHWLFRURWKHUZD\RIVHSDUDWLRQRIDPLQHUDO

  112. Page 143

    ([WUDFWLQJLQFOXGHVIRUH[DPSOHFUXVKLQJJULQGLQJFRQFHQWUDWLQJ VFUHHQLQJZDVKLQJMLJJLQJWDEOLQJHOHFWURZLQQLQJVROYHQW H[WUDFWLRQHOHFWURZLQQLQJ6;(:

  113. Page 148

    DSURFHVVLQDVPHOWHUUHILQHU\RUDQ\ZKHUHHOVHE\ZKLFK PLQHUDOLVFKDQJHGWRDQRWKHUVXEVWDQFHRU E

  114. Page 149

    WHVWLQJRUDVVD\LQJVPDOOTXDQWLWLHVRIPLQHUDOLQWHDFKLQJ LQVWLWXWLRQVRUODERUDWRULHVRWKHUWKDQODERUDWRULHVVLWXDWHGRQD PLQLQJOHDVHRU F

  115. Page 150

    DQDFWLYLW\SUHVFULEHGXQGHUDUHJXODWLRQWKDWLVQRWGLUHFWO\ DVVRFLDWHGZLWKZLQQLQJPLQHUDOIURPDSODFHZKHUHLWRFFXUV

  116. Page 154

    PD\SUHVFULEHDQDFWLYLW\E\ UHIHUHQFHWRWKHTXDQWLWLHVRIPLQHUDOVH[WUDFWHGRUWRDQ\RWKHU VSHFLILHGFLUFXPVWDQFHV 3DJH RI (65 9HUVLRQ (IIHFWLYH0$5 'HSDUWPHQWRI(QYLURQPHQWDQG+HULWDJH3URWHFWLRQ

  117. Page 155

    (OLJLELOLW\FULWHULDDQGVWDQGDUGFRQGLWLRQVIRUH[SORUDWLRQDQGPLQHUDOGHYHORSPHQWSURMHFWV 1DWLYHYHJHWDWLRQ 9HJHWDWLRQWKDWRFFXUVQDWXUDOO\LQDFHUWDLQDUHD 1RLVHVHQVLWLYHSODFH 0HDQVDQ\RIWKHIROORZLQJSODFHV- 1RUPDOIORZFKDQQHO 1RWLILDEOHDFWLYLW\ D

  118. Page 157

    DOLEUDU\FKLOGFDUHFHQWUHNLQGHUJDUWHQVFKRROFROOHJHXQLYHUVLW\RU 2YHUEXUGHQ 5HIHUDEOHGDP RWKHUHGXFDWLRQDOLQVWLWXWLRQ F

  119. Page 159

    DSURWHFWHG DUHDRUDQDUHDLGHQWLILHGXQGHUDFRQVHUYDWLRQSODQDVD FULWLFDOKDELWDWRUDQDUHDRIPDMRULQWHUHVWXQGHUWKH1DWXUH &RQVHUYDWLRQ$FW H

  120. Page 163

    )RUDUHSUHVHQWDWLYHGUDZLQJRIDQRUPDOIORRGIORZFKDQQHORIDZDWHU FRXUVHUHIHUWR)LJXUH - -&URVV6HFWLRQ7KURXJKD:DWHUFRXUVH-DQG )LJXUH -3ODQ9LHZRID:DWHUFRXUVH- 0HDQVDQDFWLYLW\LQVFKHGXOH RIWKH(QYLURQPHQWDO3URWHFWLRQ$FW )RUDUHSUHVHQWDWLYHGUDZLQJRIDQRXWHUEHQGRIDZDWHUFRXUVHUHIHUWR )LJXUH - -&URVV6HFWLRQ7KURXJKD:DWHUFRXUVH-DQG)LJXUH- -3ODQ 9LHZRID:DWHUFRXUVH- 0DWHULDORYHUO\LQJDPLQHUDORUHGHSRVLWXSWREXWQRWLQFOXGLQJWKHWRSVRLO 7KH:DWHU5HVRXUFHV$FW GHILQHVUHIHUDEOHGDPVDV D

  121. Page 164

    ZRUNVRUSURSRVHGZRUNVWKDWLQFOXGHRUZRXOGLQFOXGHDEDUULHU ZKHWKHUSHUPDQHQWRUWHPSRUDU\WKDWGRHVRUFRXOGRUZRXOG LPSRXQGGLYHUWRUFRQWUROZDWHUZKLFKEDUULHU L

  122. Page 166

    LVPRUHWKDQPLQKHLJKWDQGKDVDVWRUDJHFDSDFLW\RIPRUH WKDQ0/DQGDFDWFKPHQWDUHDWKDWLVPRUHWKDQWLPHVLWV PD[LPXPVXUIDFHDUHDRUIXOOVXSSO\OHYHO E

  123. Page 168

    WKDWFRQVLVWRIRULQFOXGHRUZRXOGFRQVLVWRIRULQFOXGHDEDUULHU ZKHWKHUSHUPDQHQWRUWHPSRUDU\WKDWGRHVRUFRXOGRUZRXOG LPSRXQGGLYHUWRUFRQWUROZDWHURUKD]DUGRXVZDVWHRWKHUWKDQ DEDUULHUGHILQHGLQSDUDJUDSKD

  124. Page 170

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

  125. Page 171

    (OLJLELOLW\FULWHULDDQGVWDQGDUGFRQGLWLRQVIRUH[SORUDWLRQDQGPLQHUDOGHYHORSPHQWSURMHFWV 5HJXODWHGZDVWH 6HFWLRQ RIWKH(QYLURQPHQWDO3URWHFWLRQ5HJXODWLRQ GHILQHVPLQLQJ DV-

  126. Page 179

    +RZHYHUZDVWHLVQRWUHJXODWHGZDVWHLILWLVPHQWLRQHGLQVFKHGXOH SDUW 5HKDELOLWDWLRQSURFHVVHV 7KHPHDVXUHVDQGDFWLRQVWDNHQWRDFKLHYHUHKDELOLWDWLRQRXWFRPHV LQFOXGLQJDQ\RUDOORIWKHIROORZLQJ 5LYHULQHDUHD 6HGLPHQWSRQG D

  127. Page 183

    UHVKDSLQJWKHODQGVXUIDFHWRDVWDEOHODQGIRUPVLPLODUWRWKDWRI VXUURXQGLQJ XQGLVWXUEHGDUHDV G

  128. Page 186

    EHQFKLQJ ULGJHFXWVDQGUHPRYLQJDQ\RYHUKDQJLQJPDWHULDO 5HIHUVWRWKHODQGDGMRLQLQJDQGDVVRFLDWHGZLWKZDWHUFRXUVHVLQFOXGLQJWKH EHGEDQNVDGMRLQLQJWHUUDFHGODQGDQGULSDULDQYHJHWDWLRQ5HIHUWR)LJXUH - -&URVV6HFWLRQ7KURXJKD:DWHUFRXUVH- $EXQGHG RUH[FDYDWHGVWUXFWXUHXVHGWRFRQWDLQDQGVHWWOHZDWHUERUQH VHGLPHQWUXQQLQJRIIGLVWXUEHGDUHDV $GHYLFHXVHGWRILOWHUZDWHUERUQHVHGLPHQWUXQQLQJRIIGLVWXUEHGDUHDV 0D\LQFOXGHVLOWIHQFHVKD\EDOHVRUJUDVVHGVWULSV 6HFWLRQRI WKH(QYLURQPHQWDO3URWHFWLRQ$FW GHILQHVVHULRXV HQYLURQPHQWDOKDUPDV

  129. Page 193

    WKDWFDXVHVDFWXDORUSRWHQWLDOORVVRUGDPDJHWRSURSHUW\RIDQ DPRXQWRIRUDPRXQWVWRWDOOLQJPRUHWKDQWKHWKUHVKROG DPRXQWRU G

  130. Page 194

    WKDWUHVXOWVLQ FRVWVRIPRUHWKDQWKHWKUHVKROGDPRXQWEHLQJ LQFXUUHGLQWDNLQJDSSURSULDWHDFWLRQWR- 3DJH RI (65 9HUVLRQ (IIHFWLYH0$5 'HSDUWPHQWRI(QYLURQPHQWDQG+HULWDJH3URWHFWLRQ

  131. Page 195

    (OLJLELOLW\FULWHULDDQGVWDQGDUGFRQGLWLRQVIRUH[SORUDWLRQDQGPLQHUDOGHYHORSPHQWSURMHFWV 6LJQLILFDQWO\GLVWXUEHGODQG L

  132. Page 198

    ,QWKLVVHFWLRQ -7KUHVKROGDPRXQW- PHDQVRULIDJUHDWHU DPRXQWLVSUHVFULEHGE\UHJXODWLRQWKHJUHDWHUDPRXQW /DQGLVVLJQLILFDQWO\GLVWXUEHGLI- D

  133. Page 200

    LWKDVEHHQGLVWXUEHGDQGKXPDQLQWHUYHQWLRQLVQHHGHGWRUHKDELOLWDWH LW 6LJQLILFDQWO\GLVWXUEHGODQGLQFOXGHV DUHDVZKHUHVRLOKDVEHHQFRPSDFWHGUHPRYHGFRYHUHGH[SRVHGRU VWRFNSLOHG DUHDVZKHUHYHJHWDWLRQKDVEHHQUHPRYHGRUGHVWUR\HGWRDQH[WHQW ZKHUHWKHODQGKDVEHHQPDGHVXVFHSWLEOHWRHURVLRQYHJHWDWLRQ WRSVRLO

  134. Page 201

    DUHDVZKHUHODQGXVHVXLWDELOLW\RUFDSDELOLW\KDVEHHQGLPLQLVKHG DUHDVZLWKLQDZDWHUFRXUVHZDWHUZD\ZHWODQGRUODNHZKHUHPLQLQJ SURMHFWDFWLYLWLHVRFFXU DUHDVVXEPHUJHGE\WDLOLQJVRUKD]DUGRXVFRQWDPLQDQWVWRUDJHDQG GDPZDOOVLQDOOFDVHV DUHDVXQGHUWHPSRUDU\LQIUDVWUXFWXUH7HPSRUDU\LQIUDVWUXFWXUH LQFOXGHVDQ\LQIUDVWUXFWXUHURDGVWUDFNVEULGJHVFXOYHUWVGDPV ERUHVEXLOGLQJVIL[HGPDFKLQHU\KDUGVWDQGDUHDVDLUVWULSVKHOLSDGV HWF

  135. Page 202

    ZKLFKLVWREHUHPRYHGDIWHUPLQLQJKDVFHDVHGRU DUHDVZKHUHODQGKDVEHHQFRQWDPLQDWHG +RZHYHUWKHIROORZLQJDUHDVDUHQRW LQFOXGHG DUHDVRIIOHDVHHJURDGVRUWUDFNVZKLFKSURYLGHDFFHVVWRWKH PLQLQJOHDVH

  136. Page 203

    DUHDVSUHYLRXVO\VLJQLILFDQWO\GLVWXUEHGZKLFKKDYHDFKLHYHGWKH UHKDELOLWDWLRQRXWFRPHV E\DJUHHPHQWZLWKWKH(3$DUHDVSUHYLRXVO\VLJQLILFDQWO\GLVWXUEHG ZKLFKKDYHQRWDFKLHYHGWKHUHKDELOLWDWLRQREMHFWLYHVGXHWR FLUFXPVWDQFHVEH\RQGWKH FRQWURORIWKHPLQHRSHUDWRUVXFKDV FOLPDWLFFRQGLWLRQV

  137. Page 204

    DUHDVXQGHUSHUPDQHQWLQIUDVWUXFWXUH3HUPDQHQWLQIUDVWUXFWXUH LQFOXGHVDQ\LQIUDVWUXFWXUHURDGVWUDFNVEULGJHVFXOYHUWVGDPV ERUHVEXLOGLQJVIL[HGPDFKLQHU\KDUGVWDQGDUHDVDLUVWULSVKHOLSDGV HWF

  138. Page 205

    ZKLFKLVWREHOHIWE\DJUHHPHQWZLWKWKHODQGRZQHU7KH DJUHHPHQWWROHDYHSHUPDQHQWLQIUDVWUXFWXUHPXVWEHUHFRUGHGLQWKH /DQGRZQHU$JUHHPHQWDQGORGJHGZLWKWKH'HSDUWPHQWRI (QYLURQPHQWDQG+HULWDJH3URWHFWLRQ GLVWXUEDQFHV WKDWSUHH[LVWHGWKHJUDQWRIWKHWHQXUHXQOHVVWKRVH DUHDVDUHGLVWXUEHGGXULQJWKHWHUPRIWKHWHQXUH 0HDQVDVLWHPDQDJHPHQWSODQDSSURYHGXQGHUFKDSWHUSDUWRI WKH (QYLURQPHQWDO3URWHFWLRQ$FW 3DJH RI (65 9HUVLRQ (IIHFWLYH0$5 'HSDUWPHQWRI(QYLURQPHQWDQG+HULWDJH3URWHFWLRQ

  139. Page 206

    (OLJLELOLW\FULWHULDDQGVWDQGDUGFRQGLWLRQVIRUH[SORUDWLRQDQGPLQHUDOGHYHORSPHQWSURMHFWV 6WDQGDUGFULWHULD $UHGHILQHGLQVFKHGXOH RIWKH(QYLURQPHQWDO3URWHFWLRQ$FW7KH\ DUH 6WDQGDUGHQYLURQPHQWDO FRQGLWLRQV D

  140. Page 207

    WKHIROORZLQJSULQFLSOHVRIHQYLURQPHQWDOSROLF\DVVHW RXWLQWKH 6WDQGDUGPLQLQJDFWLYLW\ ,QWHUJRYHUQPHQWDO $JUHHPHQWRQWKH (QYLURQPHQW- 6XLWDELOLW\VWDWHPHQW 7HFKQLFDOJXLGHOLQHV L

  141. Page 211

    DQ\DSSOLFDEOH &RPPRQZHDOWK RU 6WDWHJRYHUQPHQWSODQVVWDQGDUGV DJUHHPHQWVRUUHTXLUHPHQWV DERXWHQYLURQPHQWDOSURWHFWLRQRU HFRORJLFDOO\VXVWDLQDEOHGHYHORSPHQWDQG F

  142. Page 215

    EHVWSUDFWLFH HQYLURQPHQWDOPDQDJHPHQW IRUDFWLYLWLHVXQGHUDQ\ UHOHYDQWLQVWUXPHQWRUSURSRVHG LQVWUXPHQWDVIROORZV- L

  143. Page 221

    WKHILQDQFLDOLPSOLFDWLRQV RIWKHUHTXLUHPHQWVXQGHUDQ LQVWUXPHQWRU SURSRVHGLQVWUXPHQWPHQWLRQHGLQSDUDJUDSKJ

  144. Page 222

    DVWKH\ ZRXOGUHODWH WRWKHW\SHRIDFWLYLW\RULQGXVWU\FDUULHGRXWRUSURSRVHGWREHFDUULHG RXWXQGHUWKHLQVWUXPHQWDQG K

  145. Page 225

    DQ\UHOHYDQW LQWHJUDWHGHQYLURQPHQWDOPDQDJHPHQWV\VWHPRU SURSRVHGLQWHJUDWHGHQYLURQPHQWDO PDQDJHPHQWV\VWHPDQG N

  146. Page 226

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

  147. Page 227

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

  148. Page 237

    3ROLF\ -5HDVRQDEOH1RLVH/HYHOV- PHDQVDUHOHDVHRIRGRXUVGXVWVPRNHRURWKHUDWPRVSKHULF FRQWDPLQDQWVWKDW D

  149. Page 244

    WKHRUGHULQZKLFKWKHSHUVRQUHOHDVLQJWKHFRQWDPLQDQWVWDUWHGWR FDUU\RXWWKHDFWLYLW\IURPZKLFKWKHUHOHDVHLVPDGHDQGSHUVRQV DIIHFWHGE\WKHUHOHDVHVWDUWHGWRFDUU\RXWRWKHUDFWLYLWLHVWKDW PD\EHDIIHFWHGE\WKHUHOHDVHRIWKHFRQWDPLQDQW 0HDQVDULYHUFUHHNRUVWUHDPLQZKLFKZDWHUIORZVSHUPDQHQWO\RU LQWHUPLWWHQWO\LQDYLVLEO\GHILQHGFKDQQHOQDWXUDODUWLILFLDORUDUWLILFLDOO\ LPSURYHG

  150. Page 245

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

  151. Page 246

    (OLJLELOLW\FULWHULDDQGVWDQGDUGFRQGLWLRQVIRUH[SORUDWLRQDQGPLQHUDOGHYHORSPHQWSURMHFWV $SSHQGL[ (QYLURQPHQWDOO\VHQVLWLYHDUHDV &DWHJRU\$(QYLURQPHQWDOO\6HQVLWLYH$UHDV &DWHJRU\$(QYLURQPHQWDOO\VHQVLWLYHDUHDVDUH GHILQHGLQ6FKHGXOH3DUWRIWKH(QYLURQPHQWDO3URWHFWLRQ 5HJXODWLRQ DQGUHSURGXFHGEHORZ $FDWHJRU\$HQYLURQPHQWDOO\VHQVLWLYHDUHDPHDQVDQ\RI WKHIROORZLQJ- D

  152. Page 261

    DPDULQHSDUNXQGHUWKH0DULQH3DUNV$FWRWKHU WKDQDSDUWRIWKHSDUNWKDWLVDJHQHUDOXVH]RQH XQGHU WKDW$FW &DWHJRU\%(QYLURQPHQWDOO\6HQVLWLYH$UHDV &DWHJRU\% (QYLURQPHQWDOO\VHQVLWLYHDUHDVDUH GHILQHGLQ6FKHGXOH3DUWRIWKH(QYLURQPHQWDO3URWHFWLRQ 5HJXODWLRQ DQGUHSURGXFHGEHORZ $FDWHJRU\%HQYLURQPHQWDOO\VHQVLWLYHDUHDPHDQVDQ\RI WKHIROORZLQJ- D

  153. Page 269

    WKH-&RQYHQWLRQRQ:HWODQGVRI,QWHUQDWLRQDO,PSRUWDQFHHVSHFLDOO\DV:DWHUIRZO+DELWDW- 5DPVDU ,UDQ)HEUXDU\

  154. Page 271

    WKH-&RQYHQWLRQ&RQFHUQLQJWKH3URWHFWLRQRIWKH :RUOG&XOWXUDODQG1DWXUDO+HULWDJH-3DULV 1RYHPEHU

  155. Page 277

    D4XHHQVODQGKHULWDJHSODFHXQOHVVWKHUHLVDQ H[HPSWLRQFHUWLILFDWHLVVXHGXQGHUWKDW$FW I

  156. Page 278

    DQDUHDUHFRUGHGLQWKH$ERULJLQDO&XOWXUDO+HULWDJH5HJLVWHUHVWDEOLVKHGXQGHUWKH$ERULJLQDO&XOWXUDO +HULWDJH$FWVHFWLRQRWKHUWKDQWKHDUHDNQRZQDVWKH-6WDQEURNH3DVWRUDO'HYHORSPHQW +ROGLQJ-OHDVHGXQGHUWKH/DQG $FWE\OHDVHQXPEHU3+ J

  157. Page 282

    DQHQGDQJHUHGUHJLRQDOHFRV\VWHPLGHQWLILHGLQWKHGDWDEDVHNQRZQDVWKH-5HJLRQDOHFRV\VWHP GHVFULSWLRQGDWDEDVH-NHSWE\WKHGHSDUWPHQW 3DJH RI (65 9HUVLRQ (IIHFWLYH0$5 'HSDUWPHQWRI(QYLURQPHQWDQG+HULWDJH3URWHFWLRQ

  158. Page 283

    (OLJLELOLW\FULWHULDDQGVWDQGDUGFRQGLWLRQVIRUH[SORUDWLRQDQGPLQHUDOGHYHORSPHQWSURMHFWV &DWHJRU\&(QYLURQPHQWDOO\6HQVLWLYH$UHDV /$1'$5($&/$66,),&$7,21 $'0,1,67(5,1*/(*,6/$7,21 $'0,1,67(5,1*$87+25,7< 1DWXUH&RQVHUYDWLRQ$FW 1DWXUH5HIXJHVDQG :DWHU$FWYDULRXV:DWHU 'HSDUWPHQWRI(QYLURQPHQWDQG 5HVRXUFH5HVHUYHV %RDUG$FWV +HULWDJH3URWHFWLRQ 'HFODUHG&DWFKPHQW$UHDV 'HFODUHG,UULJDWLRQDQG,UULJDWLRQ 5LYHU,PSURYHPHQW7UXVW$FW 'HSDUWPHQWRI1DWXUDO5HVRXUFHV 3URMHFW$UHDVDQG DQG0LQHVDQGRU :DWHU5HVHUYRLUVDQG'UDLQDJH 5HOHYDQW6WRUDJH2SHUDWRURU $UHDV %RDUG 5LYHU,PSURYHPHQW$UHDV 'HSDUWPHQWRI1DWXUDO5HVRXUFHV 'HVLJQDWHG/DQGVFDSH$UHDHJ $ERULJLQDO&XOWXUDO+HULWDJH$FW DQG0LQHVDQGWKH5HOHYDQW 6WDQEURNH3DVWRUDO+ROGLQJ

  159. Page 284

    5LYHU7UXVW 'HSDUWPHQWRI$ERULJLQDODQG +LVWRULF0LQLQJ6LWHV 1LO,QWHU'HSDUWPHQWDO1RWLILFDWLRQV

  160. Page 285

    7RUUHV6WUDLW,VODQGHU 3DUWQHUVKLSV 6WDWH)RUHVWRU7LPEHU5HVHUYHV )RUHVWU\$FW 'HSDUWPHQWRI(QYLURQPHQWDQG +HULWDJH3URWHFWLRQDQGWKH '3,5HVHDUFK6LWHV 1LO,QWHU'HSDUWPHQWDO$JUHHPHQW

  161. Page 286

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

  162. Page 287

    (OLJLELOLW\FULWHULDDQGVWDQGDUGFRQGLWLRQVIRUH[SORUDWLRQDQGPLQHUDOGHYHORSPHQWSURMHFWV $SSHQGL[ )RUPV (QYLURQPHQWDO$XWKRULW\1R 3URMHFW1R )RUP0RQLWRULQJDQGUHFRUGNHHSLQJVXPPDU\ 7HUPRI3ODQ\UV

  163. Page 288

    &RPPHQFHPHQW'DWH 0HWKRGRIUHFRUGNHHSLQJWREHXVHG )UHTXHQF\ 'DWDDQG,QIRUPDWLRQ 6LWH3ODQV -RXUQDO 3KRWRJUDSKV 2WKHU 7RSVRLOVWULSSLQJDQGVWRFNSLOLQJHJUHFRUGWRSVRLOVWRFNSLOHVORFDWLRQDQG DJH

  164. Page 289

    $UHDGLVWXUEHGDQGUHKDELOLWDWLRQHJPDSRIWKHDUHDRIGLVWXUEDQFHDQG SKRWRVRIUHKDELOLWDWLRQ

  165. Page 294

    HJUHFRUGLQMRXUQDODQ\ FRPSODLQWVUHFHLYHGE\DGMRLQLQJODQGRZQHUDFWLRQVWDNHQDQGWKHRXWFRPHV RIWKHDFWLRQ

  166. Page 295

    6LWHVSHFLILFFRQGLWLRQVHJUHFRUGRIPRQLWRULQJWRGHPRQVWUDWHFRPSOLDQFH ZLWKDQ\VLWHVSHFLILFFRQGLWLRQV

  167. Page 298

    5HKDELOLWDWLRQTXRWHVHVWLPDWHVDQGDFWXDOFRVWV 2WKHUV- UHOHYDQWWRSHUIRUPDQFHFDWHJRU\ 3DJH RI (65 9HUVLRQ (IIHFWLYH0$5 'HSDUWPHQWRI(QYLURQPHQWDQG+HULWDJH3URWHFWLRQ

  168. Page 299

    (OLJLELOLW\FULWHULDDQGVWDQGDUGFRQGLWLRQVIRUH[SORUDWLRQDQGPLQHUDOGHYHORSPHQWSURMHFWV )RUP(PHUJHQF\UHVSRQVHWDEOH (PHUJHQF\VLWXDWLRQ :KRWRFRQWDFWLQFDVHRI (TXLSPHQWUHTXLUHGWREHNHSWDQG 3URFHGXUHWREHIROORZHGLQFDVH HPHUJHQF\VLWXDWLRQRFFXUULQJ PDLQWDLQHGRQVLWH RIHPHUJHQF\VLWXDWLRQRFFXUULQJ +\GURFDUERQVSLOOFDXVLQJVHULRXV RUPDWHULDOHQYLURQPHQWDOKDUP &KHPLFDOVSLOOFDXVLQJVHULRXVRU PDWHULDOHQYLURQPHQWDOKDUP 2WKHU 3DJH RI (65 9HUVLRQ (IIHFWLYH0$5 'HSDUWPHQWRI(QYLURQPHQWDQG+HULWDJH3URWHFWLRQ

  169. Page 300

    (OLJLELOLW\FULWHULDDQGVWDQGDUGFRQGLWLRQVIRUH[SORUDWLRQDQGPLQHUDOGHYHORSPHQWSURMHFWV )RUP6FKHGXOHRIUHKDELOLWDWLRQFRVWV 5(+$%,/,7$7,217<3(6 727$/$5($2)',6785%$1&( /2:5,6. +,*+5,6. 6LPSOHVWUDLJKWIRUZDUGUHKDELOLWDWLRQ6XFFHVVIXO 'LIILFXOWUHKDELOLWDWLRQHJGLVSHUVLYHVRLOVVWHHS UHKDELOLWDWLRQRIDQDORJRXVVLWHVKDVSUHYLRXVO\ WRSRJUDSK\UHPRWHQHVVVHQVLWLYHDUHDVHWF

  170. Page 301

    EHHQDFKLHYHG &DWHJRU\ - /HVVWKDQKHFWDUH &DWHJRU\ - WRKHFWDUHV &DWHJRU\ - WRKHFWDUHV 1RWHV 7KHILQDODVVXUDQFHIRUHDFKFDWHJRU\DUH EDVHGRQUHKDELOLWDWLQJWKHPD[LPXPDUHDLQWKDWFDWHJRU\HJILQDQFLDODVVXUDQFHIRUWRKHFWDUHVLVEDVHGRQ WKHFRVWRIUHKDELOLWDWLQJKHFWDUHV

  171. Page 302

    7KHILQDQFLDODVVXUDQFHIRUHQYLURQPHQWDODXWKRULW\ZLWKDGGLWLRQDOFRQGLWLRQVDWWDFKHGDOORZWKDW WKHRSHUDWRUWRGLVWXUEPRUHWKDQ KDZLOOEHFDOFXODWHGXVLQJWKHDERYHVFKHGXOHZLWKWKHDGGLWLRQDODUHDRIGLVWXUEDQFHFDOFXODWHGDFFRUGLQJWRWKHUHOHYDQWFDWHJRU\)RUH[DPSOHWKHILQDQFLDO DVVXUDQFHIRUKDRIORZULVNGLVWXUEDQFHZLOOEHLHIRUWKHILUVWKDDQGDQRWKHUIRUWKHH[WUDKDEHFDXVHLWLVDOVRLQFDWHJRU\

  172. Page 304

    (OLJLELOLW\FULWHULDDQGVWDQGDUGFRQGLWLRQVIRUH[SORUDWLRQDQGPLQHUDOGHYHORSPHQWSURMHFWV $SSHQGL[:DWHUFRXUVHILJXUHV )LJXUH&URVVVHFWLRQWKURXJKDZDWHUFRXUVH 3DJH RI (65 9HUVLRQ (IIHFWLYH0$5 'HSDUWPHQWRI(QYLURQPHQWDQG+HULWDJH3URWHFWLRQ

  173. Page 305

    (OLJLELOLW\FULWHULDDQGVWDQGDUGFRQGLWLRQVIRUH[SORUDWLRQDQGPLQHUDOGHYHORSPHQWSURMHFWV )LJXUH3ODQRIDZDWHUFRXUVH 3DJH RI (65 9HUVLRQ (IIHFWLYH0$5 'HSDUWPHQWRI(QYLURQPHQWDQG+HULWDJH3URWHFWLRQ

  174. Page 306

    (OLJLELOLW\FULWHULDDQGVWDQGDUGFRQGLWLRQVIRUH[SORUDWLRQDQGPLQHUDOGHYHORSPHQWSURMHFWV $SSHQGL[7HFKQLFDOJXLGHOLQHV $XVWUDOLDQ6WDQGDUG 7KHVWRUDJHDQGKDQGOLQJRIIODPPDEOHDQGFRPEXVWLEOHOLTXLGV6WDQGDUGV$XVWUDOLD

  175. Page 307

    $XVWUDOLDQ :DWHU 4XDOLW\ *XLGHOLQHV IRU )UHVK DQG 0DULQH :DWHU 4XDOLW\ $XVWUDOLDQ DQG 1HZ =HDODQG (QYLURQPHQWDQG&RQVHUYDWLRQ&RXQFLO

  176. Page 308

    &RPPRQZHDOWK%HVW3UDFWLFH(QYLURQPHQWDO0DQDJHPHQWLQ0LQLQJ*XLGHOLQHV(QYLURQPHQW$XVWUDOLD 'UHGJLQJ ([WUDFWLRQ DQG 6SRLO 'LVSRVDO )LVK +DELWDW 0DQDJHPHQW 2SHUDWLRQDO 3ROLF\ )+023 'HSDUWPHQWRI3ULPDU\,QGXVWULHV

  177. Page 312

    6RLO(URVLRQDQG6HGLPHQW&RQWURO (QJLQHHULQJ*XLGHOLQHVIRU4XHHQVODQG&RQVWUXFWLRQ6LWHV7KH,QVWLWXWLRQ RI(QJLQHHUV$XVWUDOLD4XHHQVODQG'LYLVLRQ

  178. Page 313

    7HFKQLFDO *XLGHOLQHV IRU (QYLURQPHQWDO 0DQDJHPHQW RI ([SORUDWLRQ DQG 0LQLQJ 'HSDUWPHQW RI 0LQHV DQG (QHUJ\4XHHQVODQG 7KH&RQVHUYDWLRQ6WDWXVRI4XHHQVODQG-V%LRUHJLRQDO(FRV\VWHPV(QYLURQPHQWDO3URWHFWLRQ$JHQF\

  179. Page 314

    3UHSDUHG E\ 5HVRXUFHV6HFWRU5HJXODWLRQDQG6XSSRUW'HSDUWPHQW RI (QYLURQPHQW DQG +HULWDJH 3URWHFWLRQ 7KH 6WDWH RI 4XHHQVODQG 'HSDUWPHQW RI (QYLURQPHQW DQG +HULWDJH 3URWHFWLRQ

  180. Page 315

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

  181. Page 316

    RQ DQG DVN WKHP WR WHOHSKRQH /LEUDU\ 6HUYLFHVRQ 7KLV SXEOLFDWLRQ FDQ EH PDGH DYDLODEOH LQ DQ DOWHUQDWLYH IRUPDW HJ ODUJH SULQW RU DXGLRWDSH

  182. Page 317

    RQ UHTXHVW IRU SHRSOH ZLWK YLVLRQ LPSDLUPHQW SKRQH RU HPDLO OLEUDU\#HKSTOGJRYDX! 0DUFK 3DJH RI (65 9HUVLRQ (IIHFWLYH0$5 'HSDUWPHQWRI(QYLURQPHQWDQG+HULWDJH3URWHFWLRQ