0DQDJHPHQWRI'LDEHWHV0HOOLWXV

&/,1,&$/35$&7,&(
*8,'(/,1(6
0DQDJHPHQWRI
'LDEHWHV0HOOLWXV

&/,1,&$/35$&7,&(*8,'(/,1(6

/LVWRI&RQWULEXWRUV





















3URI&KDQGULND:LMH\DUDWQH
'U1RHO6RPDVXQGDUDP
3URI8SDOL,OODQJDVHNHUD
'U+HQU\5DMDUDWQDP
3URI5LIIG\0RKLGHHQ
'U0DKHQ:LMHVXUL\D
'U0.5DJXQDWKDQ
3URI5H]YL6KHULII
'U6DUDWK*DPLQLGH6LOYD
'U%DQGXOD:LMHVLULZDUGHQH
3URI-DQDND'H6LOYD
3URI0DQGLND:LMH\DUDWQH
'U7KLODN:HHUDUDWQH
'U*QDQL6RPDVXQGDUDP
'U3UL\DQNDUD-D\HZDUGDQD
'U'$5.'D\DUDWQH
'U$UXQD/RZH
'U001DZDUDWQH
'U5HQXND-D\DWLVVD

0DQDJHPHQWRI'LDEHWHV0HOOLWXV

7DEOHRIFRQWHQWV




 ,QWURGXFWLRQ
/LVWRIDEEUHYLDWLRQV
'LDJQRVLVDQGVFUHHQLQJ
 'LDJQRVLVRIGLDEHWHV
 6FUHHQLQJIRUGLDEHWHV
3UHYHQWLRQRIGLDEHWHV
3V\FKRORJLFDOFDUH
(GXFDWLRQ
1XWULWLRQWKHUDS\
([HUFLVH
0DQDJHPHQWRIREHVLW\LQGLDEHWHV
0RQLWRULQJRIJO\FDHPLFFRQWURO
*OXFRVHFRQWURO2UDOWKHUDS\
*OXFRVHFRQWURO,QVXOLQWKHUDS\
&DUGLRYDVFXODUULVNSURWHFWLRQ
0DQDJHPHQWRIK\SHUWHQVLRQLQGLDEHWHV
1HSKURSDWK\
5HWLQRSDWK\
)RRWFDUH
1HXURSDWK\
'LDEHWHVFDUHLQWKHKRVSLWDO
'LDEHWHVFRPSOLFDWLQJSUHJQDQF\
1RQDOFRKROLFIDWW\OLYHUGLVHDVH
 $SSHQGL[


























&/,1,&$/35$&7,&(*8,'(/,1(6

,QWURGXFWLRQ

7KHUH LV H[WHQVLYH HYLGHQFH WKDW PDQDJHPHQW PDLQO\

WUHDWPHQW WR WDUJHW RI GLDEHWHV LPSURYHV LPPHGLDWH
DQG ORQJ WHUP TXDOLW\ RI OLIH +RZHYHU PDQDJHPHQW
RI GLDEHWHV FRQWLQXHV WR EH VXEVWDQGDUG WKURXJKRXW 6UL
/DQND 7KLV FRQVHQVXV JXLGHOLQH VHHNV WR VWDQGDUGL]H
RSWLPDO PDQDJHPHQW RI 7\SH  GLDEHWHV LQ GLYHUVH
UHVRXUFHVHWWLQJV
/LVWRI$EEUHYLDWLRQV
$&(,
$&5
$/7
$5%
$67
$&
%0,
%
&&%
&.
&9'
'.$
(*)5
(65'
)3*
++6
+'/
,)*
,*7
/'/
0,
05,
1$)/'
13+
2+$
2*77
3'(
33*
3$'
53*
60%*
7*
76+
87,
:+2


$QJLRWHQVLQ&RQYHUWLQJ(Q]\PH,QKLELWRU
$OEXPLQFUHDWLQLQHUDWLR
$ODQLQHDPLQRWUDQVIHUDVH
$QJLRWHQVLQ5HFHSWRU%ORFNHU
$VSDUWDWHDPLQRWUDQVIHUVH
+HPRJORELQ$&
%RG\0DVV,QGH[
9LWDPLQ%
&DOFLXP&KDQQHO%ORFNHU
&UHDWLQLQH.LQDVH
&DUGLRYDVFXODU'LVHDVH
'LDEHWLF.HWRDFLGRVLV
(VWLPDWHGJORPHUXODUILOWUDWLRQUDWH
(QG6WDJH5HQDO'LVHDVH
)DVWLQJ3ODVPD*OXFRVH
+\SHURVPRODU+\SHUJO\FDPLFVWDWH
+LJK'HQVLW\/LSRSURWHLQ
,PSDLUHG)DVWLQJ*OXFRVH
,PSDLUHG*OXFRVH7ROHUDQFH
/RZ'HQVLW\/LSRSURWHLQ
0\RFDUGLDO,QIDUFWLRQ
0DJQHWLF5HVRQDQFH,PDJLQJ
1RQDOFRKROLF)DWW\OLYHUGLVHDVH
1HXWUDO3URWDPLQH+DJHGRUQ,QVXOLQ
2UDO+\SRJO\FDHPLF$JHQW
2UDO*OXFRVH7ROHUDQFH7HVW
3KRSKRGLHVWHUDVH
3RVWSUDQGLDOJOXFRVHKRXUVDIWHUJOXFRVH
3HULSKHUDO$UWHULDO'LVHDVH
5DQGRP3ODVPD*OXFRVH
6HOIPRQLWRULQJRIJOXFRVH
7ULJO\FHULGH
7K\URLG6WLPXODWLQJ+RUPRQH
8ULQDU\7UDFW,QIHFWLRQ
:RUOG+HDOWK2UJDQL]DWLRQ

0DQDJHPHQWRI'LDEHWHV0HOOLWXV

'LDJQRVLVDQG6FUHHQLQJ

7KH QDWXUDO KLVWRU\ RI 7\SH  GLDEHWHV LQFOXGHV DQ

DV\PSWRPDWLF SUHFOLQLFDO SKDVH ZKLFK LV QRW EHQLJQ
DQG GXULQJ ZKLFK LW FDQ EH GLDJQRVHG (DUO\ WUHDWPHQW
RI 7\SH  GLDEHWHV UHGXFHV PRUELGLW\ IURP ORQJ WHUP
FRPSOLFDWLRQV6FUHHQLQJIRUDQGWUHDWLQJ7\SHGLDEHWHV
DWDSUHFOLQLFDOVWDJHWKHUHIRUHVHHPVORJLFDODOWKRXJK
WKHUH LV QR HYLGHQFH IURP WULDOV WKDW WKLV EHQHWV
LQGLYLGXDOV
7KHGLDJQRVLVRIGLDEHWHV
0LQLPDO&DUH*UDGH;DQG
6WDQGDUGFDUH*UDGH<

5HTXLUHVWZRSRVLWLYHODERUDWRU\EORRGWHVWVRQVHSDUDWH
GD\VXQOHVVWKHSODVPDJOXFRVHLVXQHTXLYRFDOO\HOHYDWHG
LQ WKH SUHVHQFH RI DFXWH PHWDEROLF GHFRPSHQVDWLRQ RU
REYLRXV V\PSWRPV SRO\XULD SRO\GLSVLD ZHLJKW ORVV
,Q WKH FDVH RI KLJK 5%6 LQ DQ DV\PSWRPDWLF LQGLYLGXDO
FRQUPVZLWK)3*RU2*77,E

7DEOH&XWRIIYDOXHV
9HQRXV3ODVPD
*OXFRVH

&DSLOODU\EORRG
*OXFRVH

'LDEHWHV0HOOLWXV
)DVWLQJ
KU SRVW JOXFRVH ORDG
RUUDQGRP
,PSDLUHG*OXFRVH
7ROHUDQFH
KUSRVWJOXFRVHORDG
,PSDLUHG)DVWLQJ
*OXFRVH
)DVWLQJ

PPROO
PJGO

PPROO
PJGO

PPROO
PJGO

PPROO
PJGO

PPROO
PJGO

PPROO
PJGO

PPRO
OPJGO

PPROO
PJGO

&/,1,&$/35$&7,&(*8,'(/,1(6

8VH PHDVXUHPHQW RI SODVPD JOXFRVH SUHIHUDEO\

IDVWLQJ,E

3HUIRUPRUDOJOXFRVHWROHUDQFHWHVW2*77LI,,E

 )3*PPROOPJGORU
 53*PPROOPJGO

&RQVLGHU WHVWV WR FODVVLI\ W\SH RI GLDEHWHV

HJ LVOHWFHOO UHODWHG DQWLERGLHV &SHSWLGH
JHQRW\SLQJ,,,

6FUHHQLQJIRUGLDEHWHV
:KRVKRXOGEHVFUHHQHG"

8VH RSSRUWXQLVWLF VFUHHQLQJ RQ DGXOWV RYHU 

\HDUVZKHQHYHUWKHUHLVDQRSSRUWXQLW\,9

,QGLYLGXDOVXQGHU\HDUVVKRXOGEHWHVWHGLIWKH\
DUHDWKLJKULVNRIGHYHORSLQJ7\SHGLDEHWHV,,,
7KHVHULVNIDFWRUVDUH
 LPSDLUHGJOXFRVHWROHUDQFH,*7RULPSDLUHG
IDVWLQJJOXFRVH,)*
 UVWGHJUHHUHODWLYHVZLWKGLDEHWHV
 LQDFWLYHOLIHVW\OHRURYHUZHLJKW%0,
 PHWDEROLFV\QGURPH
 K\SHUWHQVLRQRUG\VOLSLGDHPLD
 FDUGLRYDVFXODU
GLVHDVH
P\RFDUGLDO
LQIDUFWLRQDQJLQDRUVWURNHDQG3$'
 SRO\F\VWLF RYDU\ V\QGURPH RU SUHYLRXV
JHVWDWLRQDOGLDEHWHV
 KLVWRU\RIKDYLQJODUJHEDELHV!.J

8VLQJJUDPVRIJOXFRVHDIWHUKRXUIDVWLQJ


0DQDJHPHQWRI'LDEHWHV0HOOLWXV

+RZWRVFUHHQIRUGLDEHWHV"




8VH YHQRXV ODERUDWRU\ )3* )DVWLQJ 3ODVPD

*OXFRVH ,,D
&DSLOODU\ JOXFRVH PD\ EH XVHG ZKHQ ODERUDWRU\
WHVWLQJLVQRWDYDLODEOHYDOXHVDUHORZHUDQGWKH
LQVWUXPHQWVKRXOGEHYDOLGDWHG,,,
*O\FRVXULDPD\EHXVHGIRUVFUHHQLQJ:KHQWKHUH
DUH FODVVLFDO V\PSWRPV DQG EORRG WHVWLQJ LV QRW
DYDLODEOH,9

+RZRIWHQWRWHVW"

3HULRGLF WHVWLQJ IRU XQGLDJQRVHG 7\SH  GLDEHWHV LV

UHFRPPHQGHG E\ PHDVXULQJ IDVWLQJ SODVPD JOXFRVH
DFFRUGLQJWRWKHIROORZLQJVFKHGXOH



(DFK\HDUIRUSHRSOHZLWK,*7RU,)*,,,
(YHU\\HDUVIRUSHRSOHDWKLJKULVNZLWKDQHJDWLYH
VFUHHQLQJEORRGWHVW,,,

3HRSOH ZLWK ULVN IDFWRUV ZKR KDYH D QHJDWLYH VFUHHQLQJ

WHVWDUHDWULVNRIFDUGLRYDVFXODUGLVHDVHDQGWKHIXWXUH
GHYHORSPHQW RI 7\SH  GLDEHWHV DQG VKRXOG EH JLYHQ
DSSURSULDWHDGYLFHRQULVNIDFWRUUHGXFWLRQ,,D

)3*IDVWLQJIRUKRXUV


&/,1,&$/35$&7,&(*8,'(/,1(6

3UHYHQWLRQRI'LDEHWHV

3UHYHQWLQJ 7\SH  GLDEHWHV ZRXOG UHVXOW LQ VLJQLFDQW

SXEOLF KHDOWK EHQHWV LQFOXGLQJ ORZHU UDWHV RI
FDUGLRYDVFXODUGLVHDVH&9'UHQDOIDLOXUHEOLQGQHVVDQG
SUHPDWXUHPRUWDOLW\

 $ KHDOWK\ OLIHVW\OH UHJXODU H[HUFLVH DQG KHDOWK\

GLHWZLWKPDLQWHQDQFHRILGHDOERG\ZHLJKW,,,
 ,QGLYLGXDOV ZLWK SUHGLDEHWHV ,)* RU ,*7 RU DW
KLJK ULVN VKRXOG EH FRXQVHOHG RQ ZHLJKW ORVV DQG
UHJXODUSK\VLFDODFWLYLW\,E
 :HLJKW ORVV LV UHFRPPHQGHG IRU DOO RYHUZHLJKW
%0, !  NJP DQG FHQWUDOO\ REHVH  ZDLVW
FLUFXPIHUHQFH !  FP IRU PHQ DQG !  FP IRU
ZRPHQ,,E
 )ROORZXSFRXQVHOLQJLVLPSRUWDQWIRUVXFFHVV,,
 $GYLVH DQG WUHDW RWKHU &9' ULVN IDFWRUV HJ
WREDFFRXVHK\SHUWHQVLRQG\VOLSLGDHPLD,D
 'UXJ WKHUDS\ PD\ EH FRQVLGHUHG EXW OLIHVW\OH
PRGLFDWLRQLVPRUHHIIHFWLYH,E

6WDQGDUGFDUHDVVDPHDVPLQLPDOFDUH

0DQDJHPHQWRI'LDEHWHV0HOOLWXV

3V\FKRORJLFDOFDUH

'LDEHWHV PHOOLWXV LVDSV\FKRORJLFDOO\DQG EHKDYLRXUDOO\

GHPDQGLQJGLVHDVH6WUHVVLQDGHTXDWHVRFLDODQGIDPLO\
VXSSRUWLQDELOLW\WRDGMXVWWRSUREOHPVDQGSRRUFRSLQJ
VNLOOV PD\ KDYH D QHJDWLYH LPSDFW RQ VHOIFDUH DQG
JO\FHPLF FRQWURO 0\WKV RU PLVFRQFHSWLRQV PD\ DOVR
LQXHQFHVHOIFDUHDQGFRQWURO

&RPPXQLFDWLRQ




$GRSWDZLGHUDSSURDFKDQGKLJKOLJKWWKHSHUVRQV
FHQWUDOUROHLQKLVKHUFDUH,9
%HQRQMXGJPHQWDOUHVSHFWLQJDWWLWXGHVDQGEHOLHIV
,9

$VVHVVPHQWRI3V\FKRORJLFDO6WDWXV





([SORUHWKHVRFLDOVLWXDWLRQDWWLWXGHVEHOLHIVDQG
ZRUULHV,9
%H DOHUW WR VLJQV RI FRJQLWLYH HPRWLRQDO
EHKDYLRXUDODQGVRFLDOSUREOHPV,9
5HIHU WR PHQWDO KHDOWK VSHFLDOLVW DFFRUGLQJ WR
ORFDODYDLODELOLW\,9

&RXQVHOLQJ

&RXQVHOLQJ VKRXOG EH LQ WKH FRQWH[W RI RQJRLQJ

KHDOWKHGXFDWLRQDQGFDUH,9

6WDQGDUGFDUHDVIRUPLQLPDOFDUHLQDGGLWLRQ
 5HIHUWRDPHQWDOKHDOWKFDUHSURIHVVLRQDOZLWKD
NQRZOHGJHRIGLDEHWHVZKHQLQGLFDWHG,E

)RU &RPSUHKHQVLYH FDUH SULQFLSOHV ZLOO EH DV IRU

6WDQGDUGFDUH


$VVHVV ZHOOEHLQJ DQG SV\FKRORJLFDO VWDWXV

LQFOXGLQJ FRJQLWLYH G\VIXQFWLRQ E\ TXHVWLRQLQJ
RUYDOLGDWHGPHDVXUHVHJ:+2
$PHQWDOKHDOWKSURIHVVLRQDOFRXOGEHLQFOXGHGLQ
WKHPXOWLGLVFLSOLQDU\GLDEHWHVFDUHWHDP,E


&/,1,&$/35$&7,&(*8,'(/,1(6

(GXFDWLRQ

&RQWLQXRXVVWUXFWXUHGSDWLHQWHGXFDWLRQVKRXOGEH
DQLQWHJUDOSDUWRIWKHSULPDU\FDUHPDQDJHPHQW
IURPWKHWLPHRIGLDJQRVLV,D

$QDSSURSULDWHO\VNLOOHGSHUVRQVKRXOGEHLQFKDUJH
RIHGXFDWLRQ

&RQVLGHU XVH RI DYDLODEOH FRPPXQLFDWLRQ

WHFKQRORJLHV (J SDWLHQW LQIRUPDWLRQ OHDHWV
DXGLRYLVXDOVHWF

6WDQGDUGFDUHZRXOGEHDVIRUPLQLPDOFDUHDQG


$Q DSSURSULDWHO\ WUDLQHG PXOWLGLVFLSOLQDU\ WHDP

LQFOXGLQJDGLDEHWHVQXUVHRUDWUDLQHGGRFWRUWR
SURYLGHHGXFDWLRQLQJURXSVRULQGLYLGXDOO\

:KHUH GHVLUHG LQFOXGH D IDPLO\ PHPEHU RU D

IULHQG,9

8VH WHFKQLTXHV RI DFWLYH OHDUQLQJ DGDSWHG WR

SHUVRQDOFKRLFHVDQGOHDUQLQJVW\OHV

(QVXUHWKDWHGXFDWLRQLVDFFHVVLEOHWRDOOSHRSOH
ZLWKGLDEHWHVPDNHUHOHYDQWWRFXOWXUHHWKQLFLW\
ODQJXDJHSV\FKRVRFLDODQGGLVDELOLW\LVVXHV,,,

&RQVLGHUHGXFDWLRQDWDORFDOFRPPXQLW\OHYHO

&RPSUHKHQVLYHFDUHZRXOGEHDVIRU6WDQGDUGFDUHEXW
ZRXOGDOVRLQFOXGH




7KH DYDLODELOLW\ RQ GHPDQG RI LQGLYLGXDOL]HG

DGYLVRU\VHUYLFHRQGHPDQG,9

0DQDJHPHQWRI'LDEHWHV0HOOLWXV

1XWULWLRQ7KHUDS\

1XWULWLRQWKHUDS\LVDQLQWHJUDOSDUWRIWKHWUHDWPHQWDQG
SDWLHQWVHOIPDQDJHPHQWKHOSVWRLPSURYHTXDOLW\RIOLIH
QXWULWLRQDO VWDWXV DQG SV\FKRORJLFDO KHDOWK$ UHGXFWLRQ
LQ JO\FRV\ODWHG KHPRJORELQ +E$& RI  WR  FDQ EH
DFKLHYHGZLWKQXWULWLRQWKHUDS\DORQH

2IIHU EDVLF QXWULWLRQ JXLGHOLQHV KHDOWK\ IRRG

FKRLFHV

$GYLFH RQ HQHUJ\ UHGXFWLRQ FDUERK\GUDWHV IDW

DQGDOFRKRODVDSSURSULDWH

,I WKH SDWLHQW UHTXHVWV RIIHU QRQQXWULWLYH

VZHHWHQHUV  QRQQXWULWLYH VZHHWHQHUV DUH VDIH
ZKHQ FRQVXPHG   LQ DFFHSWDEOH GDLO\ LQWDNH
OHYHOV,E

$GYLVH WR OLPLW DOFRKRO LQWDNH WR D PRGHUDWH

DPRXQW2QHGULQNGD\RUOHVVIRUZRPHQDQG
WZRGULQNVRUOHVVGD\IRUPHQRQHGULQN PO
EHHUPOZLQHPOGLVWLOOHGVSULWV

$WWKHWLPHRIGLDJQRVLVSURYLGHDFFHVVWRDGLHWLWLDQ
RUDQXUVHWUDLQHGLQSULQFLSOHVRIQXWULWLRQ

(GXFDWHDERXW
 WKH HIIHFW RI WKH DPRXQW DQG W\SH RI
FDUERK\GUDWHRQEORRGJOXFRVH
 VHOI PRQLWRULQJ RI LQWDNH RI WRWDO JUDPV RI
FDUERK\GUDWH RU SRUWLRQV E\ H[FKDQJH RU
FDUERK\GUDWHFRXQWLQJ,D
 XVHRIJO\FHPLFLQGH[JO\FHPLFORDG,,E

2IIHULQGLYLGXDOL]HGGLHWDU\DGYLFHE\DQXWULWLRQLVW
2QH LQLWLDO FRQVXOWDWLRQ7ZR RU WKUHH IROORZ XS
VHVVLRQV&RXQVHOLQJDQGDVVHVVPHQWDQQXDOO\RU
PRUHRIWHQ,,,



&/,1,&$/35$&7,&(*8,'(/,1(6

7DEOH'LHWDU\5HFRPPHQGDWLRQV

7RWDO&DUERK\GUDWH

:KROHJUDLQ FHUHDOV YHJHWDEOHV OHJXPHV DQG

IUXLWVDVWKHDSSURSULDWHVRXUFHVRIFDUERK\GUDWH
WRIRUPRIWRWDOHQHUJ\,D

&DUERK\GUDWHULFKORZJO\FHPLFLQGH[IRRGVDUH
VXLWDEOHDVFDUERK\GUDWHULFKFKRLFHV,D

'LHWDU\3URWHLQ

3URWHLQWRFRQWULEXWHRIWRWDOHQHUJ\,,,

5HSODFHUHGPHDWZLWKFKLFNHQVKRUYHJHWDEOH
SURWHLQ,,,

5HVWULFWLRQRISURWHLQLQWDNHWRJNJGD\
LVUHFRPPHQGHGIRUQHSKURSDWK\LQGLDEHWHV,D
7\SLFDO 6UL /DQNDQ GLHW FRQWDLQV DSSUR[LPDWHO\
WKLVTXDQWLW\RISURWHLQ

'LHWDU\)DW

,I /'/ LV KLJK UHGXFH VDWXUDWHG IDWW\ DFLGV DQG

WUDQVXQVDWXUDWHGIDWW\DFLGVEHORZRIWRWDO
HQHUJ\

7RWDOIDWFRQWHQWVKRXOGQRWH[FHHGRIWRWDO
HQHUJ\,D

5HJXODU FRQVXPSWLRQ DW OHDVW WZLFH ZHHNO\ 

RI VK SUHIHUDEO\ RLO\ DQG SODQW VRXUFHV RI  Q
 IDWW\ DFLGV HJ 6R\D EHDQ RLO QXWV DQG VRPH
JUHHQYHJHWDEOHV,,D

5HVWULFWGLHWDU\FKROHVWHUROWRPJRUOHVVSHU
GD\,D

'LHWDU\EHU



1DWXUDOO\RFFXUULQJIRRGVWKDWDUHULFKLQGLHWDU\
EHU DUH VWURQJO\ UHFRPPHQGHG ZLWK D WRWDO
GLHWDU\EHULQWDNHRIJGD\RUPRUH,E

+DOIRIWRWDOGLHWDU\EHUVKRXOGEHVROXEOH,E

0DQDJHPHQWRI'LDEHWHV0HOOLWXV

)UHHVXJDU

)RRG LWHPV FRQWDLQLQJ XS WR  J RI IUHH VXJDU

SHU GD\ PD\ EH DOORZHG LI GHVLUHG SURYLGHG
JO\FDHPLFFRQWUROLVDFFHSWDEOHDQGWKHSHUVRQLV
QRWRYHUZHLJKW,D

6RGLXP

5HVWULFW VDOW WR JGD\ ZLWK WKH SRVVLELOLW\ RI

IXUWKHU UHVWULFWLRQ IRU WKRVH ZLWK HOHYDWHG EORRG
SUHVVXUH,D

$QWLR[LGDQWV

(QFRXUDJH IRRG ULFK LQ DQWLR[LGDQWV WUDFH

HOHPHQWVDQGRWKHUYLWDPLQVUDQJHRIYHJHWDEOHV
DQGIUXLWVZKROHJUDLQFHUHDOVDQGRLO\VK

7KHUHLVQRFRQYLQFLQJHYLGHQFHIRUWKHEHQHWRI
GLHWDU\VXSSOHPHQWV,9

(QHUJ\EDODQFHDQGERG\ZHLJKW

5HGXFH HQHUJ\ LQWDNH DQG LQFUHDVH HQHUJ\

H[SHQGLWXUH DPRQJ WKRVH ZKR DUH RYHUZHLJKW
3UHYHQW ZHLJKW JDLQ RQFH ZHLJKW ORVV KDV EHHQ
DFKLHYHG,D

0DLQWDLQWKH%0,ZLWKLQNJP,D



&/,1,&$/35$&7,&(*8,'(/,1(6

([HUFLVH

(QFRXUDJHUHJXODUSK\VLFDODFWLYLW\,D

$GYLVHVLPSOHZD\VRILQFUHDVLQJSK\VLFDODFWLYLW\
LQGD\WRGD\OLIH,,,

(QFRXUDJH JUDGXDO LQFUHDVH LQ GXUDWLRQ DQG

IUHTXHQF\RISK\VLFDODFWLYLW\,E

3K\VLFDO DFWLYLW\ VKRXOG EH GLVWULEXWHG RYHU DW

OHDVW  GD\VZHHN RI   PLQ D GD\ DQG ZLWK
QRPRUHWKDQFRQVHFXWLYHGD\VZLWKRXWSK\VLFDO
DFWLYLW\,D

7DUJHWDWOHDVWVHVVLRQVRIPLQLPXPRIPLQXWHV
RI PRGHUDWH LQWHQVLW\ DHURELF SK\VLFDO DFWLYLW\
SHUZHHNHJEULVNZDONLQJWDUJHWLQJDOOPXVFOH
JURXSV,E

*UHDWHU DFWLYLW\ OHYHOV RI DW OHDVW RQH KRXUGD\

RI PRGHUDWH DFWLYLW\ ZDONLQJ RU  PLQGD\
RI YLJRURXV DFWLYLW\ MRJJLQJ PD\ EH QHHGHG WR
DFKLHYHORQJWHUPZHLJKWORVVLQWKHREHVH,E

$GYLFHRQDGMXVWLQJPHGLFDWLRQVLQVXOLQDQGRU

DGGLQJFDUERK\GUDWHIRUSK\VLFDODFWLYLW\,,D

6WDQGDUGFDUHDVIRUPLQLPDOFDUH

$GYLFHRQH[HUFLVHZLOOEHDVIRUVWDQGDUGFDUH




([HUFLVH WHVWLQJ WR EH PDGH DYDLODEOH IRU WKRVH

FRQVLGHULQJH[HUFLVHSURJUDPPHV,9

0DQDJHPHQWRI'LDEHWHV0HOOLWXV

0DQDJHPHQWRI2EHVLW\LQ'LDEHWHV

$ERXW  WR  RI SHUVRQV ZLWK W\SH  GLDEHWHV

PHOOLWXV DUH RYHUZHLJKW RU REHVH :HLJKW ORVV LPSURYHV
JO\FHPLF FRQWURO DQG DOO FDXVH PRUWDOLW\ SDUWLFXODUO\
FDUGLRYDVFXODUGLVHDVH

0LQLPDO&DUH*UDGH;DQG

6WDQGDUG&DUH*UDGH<

,PSOHPHQWOLIHVW\OHPRGLFDWLRQLQFOXGLQJUHJXODU
SK\VLFDODFWLYLW\DQGFDORULHUHGXFWLRQ,D

$ZHLJKWORVVJRDORIWRRILQLWLDOERG\ZHLJKW
RYHU D PRQWK SHULRG VKRXOG EH UHFRPPHQGHG
,E

(QHUJ\ GHFLW RI DSSUR[LPDWHO\  NFDOGD\ LV

UHFRPPHQGHG WR DFKLHYH ZHLJKW ORVV RI  WR 
NJPRQWK,E

&RPSUHKHQVLYH&DUHDVIRUVWDQGDUGFDUHLQDGGLWLRQ


$QRUJDQL]HGSURJUDPPHIRUWKRVHZKRDUHREHVH
LVGHVLUDEOH,D

2UOLVWDW RU VLEXWUDPLQH PD\ EH FRQVLGHUHG DV

DGMXQFWV,E

%DULDWULFVXUJHU\PD\EHFRQVLGHUHGIRULQGLYLGXDOV
ZLWK FODVV ,,, REHVLW\ %0,  NJP RU FODVV
,, REHVLW\ %0, WR  NJP ZLWK FR
PRUELGLWLHVZKRDUHXQDEOHWRDFKLHYHZHLJKWORVV
ZLWKOLIHVW\OHLQWHUYHQWLRQ,E



&/,1,&$/35$&7,&(*8,'(/,1(6

0RQLWRULQJRI*O\FDHPLF&RQWURO

7KHUHLVFRPSHOOLQJHYLGHQFHWKDWORQJWHUPFRPSOLFDWLRQV
RI GLDEHWHV PHOOLWXV FDQ EH UHGXFHG E\ WLJKW JO\FHPLF
FRQWURO,D
7DEOH*OXFRVHFRQWUROWDUJHWV
+E$& 
7DUJHW



&DSLOODU\%*

)3*SUHPHDO
3*

KRXU
SRVWSUDQGLDO3*

PPRO/
PJGO

PPRO
/PJGO

PPR/
PJGO

PPRO/
PJGO

8.3'6DOLJQHG+E$&EHORZDSSURSULDWHWDUJHWVWREHVHWIRU
RWKHUWHFKQLTXHV

 $Q\LPSURYHPHQWLVEHQHFLDOLQSHRSOHZKRVHWDUJHWV
FDQQRWEHUHDFKHG,E
 ,Q SHRSOH ZLWK SK\VLFDO RU PHQWDO LPSDLUPHQW WKH
WDUJHWVPD\EHUDLVHGZKHQWKHULVNRIK\SRJO\FDHPLD
KLJK,,,



7KHFDUHPD\QHHGWREHEDVHGRQPHDVXUHPHQW
RI SODVPD RU FDSLOODU\ YLVXDOO\ UHDG RU PHWHU
JOXFRVHOHYHOVDORQH,9

7KHWHVWVVKRXOGEHGRQHDWOHDVWRQFHLQZHHNV
,9

)3*DQGKU33*VKRXOGEHPRQLWRUHGIRUWQLJKWO\
XQWLO JO\FDHPLF FRQWURO LV DFKLHYHG 7KHUHDIWHU
PRQLWRUPRQWKO\ZLWK)3*DQG33*LIRQO\RQH
PHDVXUHPHQWFDQEHGRQHGR33*DIWHUWKHPDLQ
PHDO LI WKH SDWLHQW LV RQ LQVXOLQ PHDVXUH EORRG
JOXFRVHWZLFHDZHHN,,,

6LWHRIFDUHFDSLOODU\EORRGJOXFRVHPHWHUVVKRXOG
EHTXDOLW\FRQWUROOHG,,D

(QFRXUDJHVHOIPRQLWRULQJRIEORRGJOXFRVH60%*
IRUWKRVHRQLQVXOLQWKHUDS\,,D

0DQDJHPHQWRI'LDEHWHV0HOOLWXV

3HUIRUP $& HYHU\  PRQWKV XQWLO FRQWURO LV

DFKLHYHGDQGHYHU\PRQWKVRQFHVWDELOL]HG,E

8VH IUXFWRVDPLQH OHYHO ZKHQ $& LV LQYDOLGDWHG

E\ KDHPRJORELQRSDWK\ RU DEQRUPDO KDHPRJORELQ
WXUQRYHU,E

60%*XVLQJVWULSVRUPHWHUVKRXOGEHHQFRXUDJHG

ZKHQHYHUSRVVLEOH

 IRUDOOQHZO\GLDJQRVHGZLWKGLDEHWHV,,,

 IRUDOORQLQVXOLQ,,D

60%*XVLQJVWULSVRUPHWHUVKRXOGEHFRQVLGHUHG

IRUSHRSOHXVLQJRUDODJHQWV,,,

$VVHVVPHQW RI VHOIPRQLWRULQJ VNLOOV VKRXOG EH

PDGHDQQXDOO\,9

&RPSUHKHQVLYHFDUHDVIRU6WDQGDUGFDUHLWPD\EH
SRVVLEOHWRGHYRWHPRUHUHVRXUFHVWRDFKLHYLQJORZHU
WDUJHWOHYHOV


3HUIRUP IUHTXHQW JOXFRVH PRQLWRULQJ LQ SHRSOH

ZLWKSHUVLVWHQWJOXFRVHFRQWUROSUREOHPVRUZLWK
SUREOHPVRI$&HVWLPDWLRQ,9



&/,1,&$/35$&7,&(*8,'(/,1(6

*OXFRVH&RQWURO2UDO7KHUDS\

%HJLQRUDOJOXFRVHORZHULQJGUXJVZKHQJO\FDHPLF
FRQWURO LV QRW DFKLHYHG E\ OLIHVW\OH LQWHUYHQWLRQV
DORQH,D

7KHUVWOLQHRSWLRQVDUH
 0HWIRUPLQ VWDUW DW VPDOO GRVH WLWUDWH GRVH
WR PLQLPL]H JDVWURLQWHVWLQDO LQWROHUDQFH
,D
 6XOIRQ\OXUHDVZKHQ%0,NJP,D

6WHSXSGRVHVDQGDGGRWKHURUDOJOXFRVHORZHULQJ
GUXJVXQWLOEORRGJOXFRVHLVDWWDUJHWOHYHOV,D

7KHVHFRQGOLQHRSWLRQVDUH
 0HWIRUPLQRU6XOIRQ\OXUHD,D
 *OLWD]RQHWKLD]ROLGLQHGLRQHDGGLQJLWWR

PHWIRUPLQRUVXOIRQ\OXUHDRU,E

FRPELQDWLRQRIPHWIRUPLQDQGVXOIRQ\OXUHD,E
 DJOXFRVLGDVHLQKLELWRUV,E

&RQVLGHU LQVXOLQ HDUO\ LI UDWH RI GHWHULRUDWLRQ LV

UDSLG,Y

6WDQGDUGFDUHDVIRUPLQLPDOFDUH


5DSLGDFWLQJ LQVXOLQ VHFUHWDJRJXHV PD\ EH XVHG

DVDQDOWHUQDWLYHWRVXOIRQ\OXUHDVLQSHRSOHZLWK
H[LEOHOLIHVW\OHV,,,

&RPSUHKHQVLYHFDUHDVIRU6WDQGDUGFDUH



0DQDJHPHQWRI'LDEHWHV0HOOLWXV

7DEOH 2UDO+\SRJO\FDHPLF'UXJVXVHGLQWKHWUHDWPHQWRI
7\SH'LDEHWHV0HOOLWXV
'UXJ
%LJXDQLGHV
0HWIRUPLQ

PJ
LQGLYLGHG
GRVHV6WDUWDW
ORZGRVHZLWK
PHDOV

)LUVWFKRLFHLQ
REHVHRULQLQVXOLQ
UHVLVWDQFH
$GGRQWKHUDS\WR
68LIIDLOLQJ
:LWKLQVXOLQDV
LQVXOLQVSDULQJ
VHQVLWL]LQJDJHQW

5HQDOLPSDLUPHQW
&UHDWLQLQH!
PPROO6HYHUHKHDUW
IDLOXUH/LYHUIDLOXUH

'LDUUKRHD
'\VSHSVLD
%ORDWLQJ

 )LUVWOLQHLQQRQ
REHVH
 6HFRQGOLQH
LQREHVHDIWHU
PHWIRUPLQ
 1RWH
*OLPHSLULGH
JOLFOD]LGHFDXVH
OHVVZHLJKWJDLQ

5HQDOIDLOXUH3RRURUDO
LQWDNH

+\SRJO\FHPLD

 1RQREHVHDGGWR
68PHWIRUPLQ
 &DQEHXVHGDV
PRQRWKHUDS\
LQQRUPDO%0,
FHQWUDOO\REHVH
 2EHVHVHFRQGOLQH
DIWHUPHWIRUPLQ
 7ULSOHWKHUDS\
DIWHU68DQG
PHWIRUPLQ

/LYHUGLVHDVH+HDUW
GLVHDVH*UDGHLLLLY
FDUGLDFIDLOXUH
&DXWLRQZLWKLQVXOLQ
WKHUDS\

:HLJKWJDLQ
2HGHPD
:RUVHQLQJRI
FDUGLDFIDLOXUH
*,V\PSWRPV
0RQLWRU/)7

GLYLGHGGRVHV

*OLPHSLULGH

PJRQFH
GDLO\

*LEHQFODPLGH

PJLQ
GLYLGHGGRVHV

7ROEXWDPLGH

PJ
LQGLYLGHG
GRVHV
PJLQ
GLYLGHGGRVHV

*OLWD]RQHV
5RVLJOLWD]RQH
3LRJOLWD]RQH

PJRQFH
GDLO\
PJRQFH
GDLO\

JOXFRVLGDVH
LQKLELWRUV
$FDUERVH

0HJOLWDQLGHV
5HSDJOLQLGH
1DWHJOLQLGH

&RPPRQ
DGYHUVH
HIIHFWV

,QGLFDWLRQV

6XOSKRQ\OXUHD
*OLFOD]LGH
PJLQ

*OLSL]LGH

&RQWUDLQGLFDWLRQV
&DXWLRQ

'RVHUDQJH

PJLQ
GLYLGHGGRVHV
ZLWKPHDOV
PJZLWK
HDFKPHDO
PJZLWK
HDFKPHDO

 2EHVH
VHFRQGOLQHDIWHU
PHWIRUPLQ
 7ULSOHWKHUDS\
DIWHU68DQG
PHWIRUPLQ

PRQWKO\LQUVW
PRQWKVDQGWKHQ
\HDUO\

 7KLUGOLQHDIWHU
PHWIRUPLQDQG68
 5DUHO\ZHOO
WROHUDWHG

'LDUUKRHD
$EGRPLQDO
EORDWLQJ

 7DNHQZLWKPHDOV
QRPHDOVQR
WDEOHW
 &RQWUROSRVW
SUDQGLDO
K\SHUJO\FHPLD
/HVVZHLJKWJDLQLQ
REHVH

+\SRJO\FHPLD



&/,1,&$/35$&7,&(*8,'(/,1(6

7KH IROORZLQJ DUH JHQHUDOO\ LQGLFDWLRQV IRU LQVXOLQ DW

WKHWLPHRIGLDJQRVLV






7\SH'LDEHWHVPHOOLWXV
'LDEHWLFNHWRDFLGRVLV+\SHUVRPRODUVWDWH
$FXWHLOOQHVVHVLQIHFWLRQV
6HYHU6\PSWRPV
9HU\ KLJK JOXFRVH YDOYHV JHQHUDOO\ PRUH WKDQ
PJGF

.H\68 VXOSKRQ\OXUHD7=' WKLD]ROLGLQHGLRQH

7='ZLWKLQVXOLQLVRIIODEHOLQPRVWFRXQWULHV

)LJXUH  $OJRULWKP IRU PDQDJHPHQW RI K\SHUJO\FDHPLD LQ W\SH 

GLDEHWHV ,I +E$& !   RU )3*! 1</'/ XQFRQWUROOHG PRYH
SURPSWO\WRQH[WOHYHORIWKHUDS\
1RWH /LIHVW\OH PRGLFDWLRQ DORQH LQ DV\PSWRPDWLF RQO\ 2+$ RU
LQVXOLQPD\EHUHTXLUHGLQWKRVHV\PSWRPDWLF



0DQDJHPHQWRI'LDEHWHV0HOOLWXV

*OXFRVH&RQWURO,QVXOLQ7KHUDS\

%HJLQ LQVXOLQ ZKHQ PD[LPDO 2+$ DQG OLIHVW\OH

LQWHUYHQWLRQV DUH XQDEOH WR DFKLHYH JO\FHPLF
FRQWUROEHIRUHSRRUFRQWUROGHYHORSVZKHQ$&KDV
GHWHULRUDWHGWR!,E

,QLWLDWLRQ PD\ EH DV D EDVDO GRVH RI  XQLWV.J

RI ERG\ ZHLJKWGD\ RI ORQJ RU LQWHUPHGLDWH DFWLQJ
LQVXOLQ,,D

&RQVLGHUHYHU\LQLWLDWLRQRUGRVHLQFUHDVHRILQVXOLQDV
DWULDOPRQLWRULQJWKHUHVSRQVH,,D

3URYLGHHGXFDWLRQRQOLIHVW\OHDQGVHOIPRQLWRULQJ

&RQWLQXHPHWIRUPLQ,,D

6XOIRQ\OXUHDV FDQ EH FRQWLQXHG ZKHQ VWDUWLQJ EDVDO

LQVXOLQWKHUDS\,D

$OSKD*OXFRVLGDVH LQKLELWRUV PD\ DOVR EH FRQWLQXHG

,D

8VHRIJOLWD]RQHVZLWKLQVXOLQPD\ZRUVHQKHDUWIDLOXUH
DQGVKRXOGEHXQGHUFORVHFOLQLFDOVXSHUYLVLRQ,,D

8VH
 D EDVDO LQVXOLQ RQFH GDLO\ VXFK DV GHWHPLU
JODUJLQHRU13+LVRSKDQHLQVXOLQRU,,D
 WZLFH GDLO\ SUHPL[ LQVXOLQ DOWHUQDWHO\ PL[
VROXEOHDQG13+LQVXOLQSULRUWRLQMHFWLRQ,,D

7HDFKVHOIWLWUDWLRQGRVHLQFUHDVHVRIXQLWVHYHU\
GD\V,,D

$LPIRUSUHEUHDNIDVWDQGSUHGLQQHUJOXFRVHOHYHOV
RI  PPROO  PJGO ZKHUH WKHVH DUH QRW
DFKLHYDEOH PRQLWRU DW RWKHU WLPHV WR LGHQWLI\ WKH
JOXFRVHSUROH,D

(QFRXUDJH VXEFXWDQHRXV LQVXOLQ LQMHFWLRQ LQWR WKH

DEGRPLQDO DUHD PRVW UDSLG DEVRUSWLRQ HJ 5DSLG
DFWLQJ LQVXOLQ RU WKLJK VORZHVW HJ /RQJ DFWLQJ
LQVXOLQ ZLWK WKH JOXWHDO DUHD RU WKH DUP DV RWKHU
SRVVLEOHLQMHFWLRQVLWHV,,D

,I WKH SDWLHQW FDQQRW VHOI DGPLQLVWHU WHDFK D FDUH

JLYHU,,,


&/,1,&$/35$&7,&(*8,'(/,1(6

6WDQGDUGFDUHDVIRUPLQLPDOFDUH


3URYLGH KHDOWKFDUH SURIHVVLRQDO VXSSRUW E\

WHOHSKRQHXQWLOWDUJHWOHYHOVDUHDFKLHYHG,,E

&RQVLGHUPXOWLSOHGDLO\LQMHFWLRQVPHDOWLPHEROXV
DQGEDVDOLQVXOLQZKHUHEORRGJOXFRVHFRQWUROLV
VXERSWLPDO  RU PHDOWLPH H[LELOLW\ LV GHVLUHG
,D

&RQVLGHU SHQLQMHFWRUV SUHOOHG RU UHXVDEOH RU

V\ULQJHVYLDOV,,D

&RPSUHKHQVLYHFDUHDVIRU6WDQGDUGFDUH



,QVXOLQ DQDORJXHV PD\ EH FRQVLGHUHG DV

DOWHUQDWLYHV,D

,QVXOLQ SXPS WKHUDS\ PD\ EH DQ DGGLWLRQDO

RSWLRQ,,,

0DQDJHPHQWRI'LDEHWHV0HOOLWXV

&DUGLRYDVFXODUULVNSURWHFWLRQ

$SSUR[LPDWHO\RIDOOGLDEHWLFVGLHRIFDUGLRYDVFXODU
GLVHDVH&9'$JJUHVVLYHPDQDJHPHQWRIFDUGLRYDVFXODU
ULVN IDFWRUV VKRXOG WDNH SULRULW\ LQ WKH PDQDJHPHQW RI
SDWLHQWVZLWKGLDEHWHV,D
$VVHVVPHQWRI&9'LQGLDEHWHV

$VVHVV &9' ULVN DW GLDJQRVLV DQG DQQXDOO\

WKHUHDIWHU
 7KHIROORZLQJDUHKLJKULVNIDFWRUVIRU&9'$JH
!\HDUVVPRNLQJK\SHUWHQVLRQSHULSKHUDO
DUWHULDO GLVHDVH 3$' IDPLO\ KLVWRU\ RI &9'
REHVHSRVWPHQRSDXVDOPLFURDOEXPLQXULD,D
 &KHFNEORRGSUHVVXUH%0,ZDLVWFLUFXPIHUHQFH
DQGSHULSKHUDOSXOVHVLQIHHW,,D
  OHDG (&* DQG /LSLG SUROH,,DDW OHDVW
WRWDO FKROHVWHURO OHYHO ,I FKROHVWHURO FDQQRW
EH PHDVXUHG FRQVLGHU WUHDWPHQW ZLWK D
6WDWLQ,,E

/LIHVW\OHDQGWKHUDSHXWLFULVNSURWHFWLRQ
1RQSKDUPDFRORJLFDOPHDVXUHV

5HGXFWLRQ RI GLHWDU\ VDWXUDWHG IDW DQG VDOW UHJXODU

SK\VLFDODFWLYLW\DQGPDLQWHQDQFHRILGHDOERG\ZHLJKW
DUHHIIHFWLYHLQUHGXFLQJWKH&9'ULVN,D
0DQDJHPHQWRIDEQRUPDOOLSLGV

7KRVHZLWK&9'RUDWKLJKULVN
 6KRXOGEHVWDUWHGRQSKDUPDFRORJLFDOWKHUDS\
,D
 $ORZHUWDUJHWRI/'/PJGOPPROO
LVUHFRPPHQGHG,E

)RUWKRVHZLWKRXW&9'



/'/WDUJHWRIPJGOLVUHFRPPHQGHG,D
)RU WKRVH RYHU  \HDUV FRQVLGHU D VWDWLQ
LI WRWDO FKROHVWHURO LV ! WR ORZHU /'/
GHVSLWHLQLWLDO/'/,E
,QWKRVH XQGHU  \HDUV D  PRQWK WULDORI QRQ
SKDUPDFRORJLFDOPHDVXUHVPD\EHWULHGUVW,D

KRXUIDVWLQJVDPSOH


&/,1,&$/35$&7,&(*8,'(/,1(6

7DEOH
/LSLG
IUDFWLRQ

*RDOPJGO

7KHUDSHXWLFLQWHUYHQWLRQ,Q
RUGHURISULRULW\

/'/



6WDWLQ

7*



*O\FHPLFFRQWUROEUDWH

+'/

IRUIHPDOHV
IRU
PDOHV

/LIHVW\OHPHDVXUHV
1LFRWLQLFDFLG

0RQLWRULQJRI/LSLGORZHULQJWKHUDS\

5HYLHZ OLSLGV LQ  PRQWKV IRU LQFUHDVH RI GRVH RI
VWDWLQRUDGGLWLRQRIH]HWLPLEH,E

&RPELQDWLRQ RI VWDWLQ DQG EUDWH PD\ EH XVHG IRU

FRPELQHGG\VOLSLGDHPLD,,D

&UHDWLQLQHNLQDVH&.VKRXOGEHFKHFNHGLIWKHUHLV

P\DOJLD6WDWLQVKRXOGEHZLWKKHOGLIWKHUHLVIROG
LQFUHDVHRI&.RUIROGULVHLQ$/7,,,

,IOLSLGOHYHOVGRQRWQRUPDOL]HZLWKWUHDWPHQWVFUHHQ
IRUDOFRKRODEXVHDQGVXEFOLQLFDOK\SRWK\URLGLVP

2QFH WDUJHW OLSLGV DUH DFKLHYHG OLIH ORQJ WKHUDS\ LV

QHFHVVDU\ ZLWK SHULRGLF PRQLWRULQJ RI OLSLG SUROH
WZLFHD\HDU,,,

$QWLSODWHOHWWKHUDS\

$VSLULQPJGDLO\LVUHFRPPHQGHGIRU

 6HFRQGDU\SUHYHQWLRQLQDOOZLWK&9',D
 3ULPDU\ SUHYHQWLRQ LQ WKRVH ZKR KDYH DQ
DGGLWLRQDOULVNIRU&9',D

&RPELQH DVSLULQ ZLWK FORSLGRJUHO LQ VHYHUH DQG

SURJUHVVLYH&9',,E

$VSLULQ LV QRW UHFRPPHQGHG IRU SDWLHQWV XQGHU WKH

DJHRI\HDUVEHFDXVHRILWVDVVRFLDWLRQZLWK5D\HV
V\QGURPH,,E

6PRNLQJFHVVDWLRQ



$GYLVHDOOZLWKGLDEHWHVWRVWRSVPRNLQJ,D

$UUDQJHVPRNLQJFHVVDWLRQFRXQVHOLQJDQGDOWHUQDWLYH
WKHUDSLHVHJQLFRWLQHSDWFKHV,,E

0DQDJHPHQWRI'LDEHWHV0HOOLWXV

5HIHUUDOIRUVWUHVVWHVWLQJ

6WUHVV WHVWLQJ VKRXOG EH DUUDQJHG IRU GLDEHWLF

LQGLYLGXDOVZLWK


W\SLFDORUDW\SLFDOFDUGLDFV\PSWRPV,,E

DEQRUPDOUHVWLQJ(&*,D

KLVWRU\RISHULSKHUDORUFDURWLGRFFOXVLYHDUWHULDO
GLVHDVH,E

EHIRUHVWDUWLQJDYLJRURXVH[HUFLVHSURJUDP,,E

0DQDJHPHQWLQVSHFLDOVLWXDWLRQV

$GG EHWD EORFNHUV XQOHVV FRQWUDLQGLFDWHG IRU

SDWLHQWVZLWKSULRUP\RFDUGLDOLQIDUFWLRQ,E

$&(LQKLELWRUVIRUWKRVHHYHQZLWKRXWK\SHUWHQVLRQ
DWKLJKULVNRI&9',D

6WDQGDUG &DUH DV IRU PLQLPDO FDUH ZLWK PRUH

DJJUHVVLYHLQYHVWLJDWLRQRIDV\PSWRPDWLF39'FRURQDU\
DUWHU\GLVHDVH&$'DQGFDURWLGGLVHDVH,,E

/LSLGSUROHVPD\EHLQYHVWLJDWHGPRUHH[WHQVLYHO\WR
JLYHEHWWHUGLUHFWDVVHVVPHQWVRI/'/FKROHVWHURODQG
DSROLSRSURWHLQV,,,



&/,1,&$/35$&7,&(*8,'(/,1(6

0DQDJHPHQWRI+\SHUWHQVLRQLQ'LDEHWHV

+\SHUWHQVLRQ FRQWULEXWHV WR WKH OHDGLQJ FDXVHV RI

PRUELGLW\ DQG PRUWDOLW\ LQ GLDEHWHV LQFOXGLQJ &$'
VWURNH 39' DPSXWDWLRQV DQG HQGVWDJH UHQDO GLVHDVH
&RQWURO RI K\SHUWHQVLRQ UHVXOWV LQ UHGXFWLRQ RI WKHVH
FRPSOLFDWLRQV ,D &XWRII YDOXHV IRU K\SHUWHQVLRQ LQ D
SDWLHQWZLWKGLDEHWHVLVORZHUWKDQIRUDQRQGLDEHWLFDQG
LVVHWDWPP+J,E
6FUHHQLQJDQGFRQUPDWLRQ

0HDVXUH%ORRG3UHVVXUH%3DWDOOFOLQLFYLVLWV,E

,I %3 ! PP+J UHFKHFN DQG FRQUP

K\SHUWHQVLRQRQDVHSDUDWHRFFDVLRQ,E

*RDO

3DWLHQWVZLWKGLDEHWHVVKRXOGEHWUHDWHGWRDFKLHYH
D6\VWROLF%3DQGGLDVWROLF%3PP+J,D

7UHDWPHQW
6%3PP+JDQG'%3PP+J

3URYLGH OLIHVW\OH DQG EHKDYLRXUDO WKHUDS\ IRU D

PD[LPXPRIPRQWKV,E

,I%3RIPP+JLVQRWDFKLHYHGFRPPHQFH
DQWLK\SHUWHQVLYHWKHUDS\,E

%3!PP+J

&RQUPEORRGSUHVVXUHZLWKLQZHHNVDQGLQLWLDWH
DQWLK\SHUWHQVLYH WKHUDS\ LQ DGGLWLRQ WR OLIHVW\OH
PHDVXUHV,E

0HDVXUHEORRGSUHVVXUHDWHDFKFOLQLFYLVLW,E

%3!PP+J

,QLWLDWH DQWLK\SHUWHQVLYH WKHUDS\ LPPHGLDWHO\ LQ

DGGLWLRQWROLIHVW\OHDGYLFH,,D

/LIHVW\OHPHDVXUHVWRUHGXFHEORRGSUHVVXUH

7KHVH LQFOXGH GLHWDU\ VRGLXP UHVWULFWLRQ ZHLJKW

UHGXFWLRQLQRYHUZHLJKWDQGREHVHDHURELFH[HUFLVH
DQGUHGXFLQJDOFRKROFRQVXPSWLRQ,D


0DQDJHPHQWRI'LDEHWHV0HOOLWXV

$QWLK\SHUWHQVLYHGUXJWUHDWPHQW

$QJLRWHQVLQ&RQYHUWLQJ(Q]\PH,QKLELWRUV$&(,V
$QJLRWHQVLQ 5HFHSWRU %ORFNHUV $5%V 7KLD]LGH
GLXUHWLFV &DOFLXP &KDQQHO %ORFNHUV &&%V DQG
%HWD EORFNHUV DUH VKRZQ WR ORZHU FDUGLRYDVFXODU
HYHQWVDQGLPSURYHORQJWHUPRXWFRPHV,E

7KH FKRLFH RI DQWLK\SHUWHQVLYH DJHQW GHSHQG RQ

WKHFRPRUELGFRQGLWLRQV,D

,QWKHDEVHQFHRIPLFURDOEXPLQXULDGLXUHWLFVDQG
EHWDEORFNHU FDQ EH XVHG DV  UVW OLQH WKHUDS\
,D

,QWKHSUHVHQFHRIPLFURDOEXPLQXULD
 LQ 7\SH  GLDEHWHV $&(,V DUH
UHFRPPHQGHG,E
 LQ 7\SH  GLDEHWHV  $&(,V RU $5%V DUH
UHFRPPHQGHG,E

0XOWLSOH DQWLK\SHUWHQVLYHV DUH XVXDOO\ UHTXLUHG

IRUDGHTXDWHFRQWURO,E

/RRN IRU D VHFRQGDU\ FDXVH ZKHQ %3 FDQQRW EH

FRQWUROOHGZLWKRUPRUHDQWLK\SHUWHQVLYHDJHQWV
UHIHUUDO WR D VSHFLDOLVW FHQWHU PD\ EH QHHGHG
,E

:KHUH V\PSWRPDWLF
K\SRWHQVLRQ,,E

$QWLK\SHUWHQVLYH WKHUDS\ LV YHU\ RIWHQ OLIH ORQJ

,,E

FKHFN

IRU

SRVWXUDO



&/,1,&$/35$&7,&(*8,'(/,1(6

1HSKURSDWK\

'LDEHWLF QHSKURSDWK\ RFFXUV LQ  GLDEHWLFV DQG

LV WKH OHDGLQJ FDXVH RI HQGVWDJH UHQDO GLVHDVH (65'
7KH SXUSRVH RI VFUHHQLQJ IRU QHSKURSDWK\ LV WR GHOD\
RUSUHYHQWORVVRIUHQDOIXQFWLRQE\HDUO\GHWHFWLRQDQG
WUHDWPHQW,,D
6FUHHQLQJ

&KHFN DQQXDOO\ IRU SURWHLQXULD ,,D LQ DQ HDUO\

PRUQLQJ RU UDQGRP VDPSOH XVLQJ VXOIDVDOLF\OLF
DFLGPHWKRGXULQHZDUGWHVWRUGLSVWLFN
 ,IWHVWSRVLWLYH
 ([FOXGHXULQDU\WUDFWLQIHFWLRQ87,
 2QFH87,LVH[FOXGHGUHSHDWRQWZRRFFDVLRQV
RYHU WKH IROORZLQJ  PRQWKV SURWHLQXULD LV
FRQUPHGLISRVLWLYHRQRIRFFDVLRQV
 ,IWHVWQHJDWLYH
 REWDLQDODERUDWRU\PLFURDOEXPLQFUHDWLQLQH
UDWLR$&5
 WHVWDQQXDOO\

,QWKHHYHQWZKHUH$&5FDQQRWEHWHVWHGDKRXU
XULQHSURWHLQH[FUHWLRQPD\EHXVHG,IQHLWKHULV
SRVVLEOHFRQVLGHUWUHDWLQJDVIRUPLFURDOEXPLQXULD
XVLQJ$&(LQKLELWRUV,Y

3URWHLQXULD FDQ RFFXU DIWHU PDMRU H[HUFLVH

IHYHU87,FRQJHVWLYHKHDUWIDLOXUHDFXWHVHYHUH
HOHYDWLRQVRIEORRGSUHVVXUHRUEORRGJOXFRVHRU
E\PHQVWUXDWLRQ6FUHHQLQJIRUPLFURDOEXPLQXULD
VKRXOG EH GHOD\HG LQ WKH SUHVHQFH RI WKHVH
FRQGLWLRQV,,D

0DQDQJHPHQW

 $GYLVH WR DYRLG ULVN IDFWRUV DQDOJHVLF XVH

DOFRKROFRQVXPSWLRQLOOLFLWGUXJXVHWROLPLW
SURWHLQ LQWDNH WR  J.J GDLO\ W\SLFDO 6UL
/DQNDQGLHWLVDERXWWKLVTXDQWLW\DQGUHVWULFWLRQ
LVQRWUHTXLUHGLQPRVW,,E


0DQDJHPHQWRI'LDEHWHV0HOOLWXV

 $LP IRU %ORRG 3UHVVXUH  PP+J XVLQJ

$&( LQKLELWRUV PD[LPXP WROHUDEOH GRVH DQG
QRQ K\GURS\ULGLQH FDOFLXP FKDQQHO EORFNHUV
DQG RWKHU DJHQWV EHWD EORFNHUV WKLD]LGHV LI
UHTXLUHG,,D
 $LPIRUWLJKWJO\FDHPLFFRQWURO,D
 $LPWRLPSURYHOLSLGSUROH,D
 ,QWHQVLI\ FDUGLRYDVFXODU SURWHFWLRQ DVSLULQ
VPRNLQJFHVVDWLRQ,D
 &KHFNSURWHLQXULFVWDWXVSURJUHVVLRQDQQXDOO\,,E
 0HDVXUH VHUXP FUHDWLQLQH WR FDOFXODWH
JORPHUXODU OWUDWLRQ UDWH HVWLPDWHG *)5 RU
XUHDHYHU\PRQWKV,,E
(VWLPDWHG*)5


$JH\HDUV[:HLJKWNJ

6HUXP&UHDWLQLQHPROO[

3RVVLEOHLQGLFDWRUVRIQRQGLDEHWLFFDXVHVRIUHQDOGLVHDVH










/DFNRIUHWLQRSDWK\RUQHXURSDWK\
3HUVLVWHQWKHPDWXULDPLFURVFRSLFRUPDFURVFRSLF
6LJQVRUV\PSWRPVRIV\VWHPLFGLVHDVH
5DSLGO\ULVLQJFUHDWLQLQH
+LJKFUHDWLQLQHZLWKOLWWOHRUQRSURWHLQXULD
)DPLO\ KLVWRU\ RI QRQGLDEHWLF UHQDO GLVHDVH HJ
SRO\F\VWLFNLGQH\GLVHDVH$OSRUWV\QGURPH
6KRUWGXUDWLRQRIGLDEHWHV
2EVWUXFWLYHXURSDWK\

([FOXGH ,URQ GHFLHQF\ SHULRGLFDOO\ DQG WUHDW

DQDHPLDZLWKKDHPDWLQLFV&RQVLGHUUHQDOUHIHUUDO
LIVWLOODQDHPLFGHVSLWHVXSSOHPHQWV,,E
&RQVLGHU 5HIHUUDO WR D QHSKURORJLVW ZKHQ H*)5
POPLQ P RU HDUOLHU LI V\PSWRPDWLF RU
ELRFKHPLFDOSUREOHPVRFFXU,,,

&RPSUHKHQVLYHFDUHLVLQJHQHUDODVIRU6WDQGDUGFDUH



&/,1,&$/35$&7,&(*8,'(/,1(6

5HWLQRSDWK\

%OLQGQHVV LV RQH RI WKH PRVW IHDUHG FRPSOLFDWLRQV RI

GLDEHWHVZLWKDQLQFLGHQFHRISHUGLDEHWLF
SRSXODWLRQ SHU \HDU +RZHYHU ZLWK JRRG FDUH YLVXDO
LPSDLUPHQW FDQ EH DYRLGHG IRU WKH YDVW PDMRULW\ RI
SDWLHQWV,,E



0DLQWDLQJRRGEORRGJOXFRVHDQG%3FRQWURO,E
5HIHU IRU VSHFLDOLVW RSLQLRQ LI FDWDUDFWV DUH
LQWHUIHULQJ ZLWK YLVLRQ RU WKH UHWLQD LV REVFXUHG
,,E

6FUHHQLQJ

([DPLQH WKH H\HV RI DW GLDJQRVLV DQG DW OHDVW

DQQXDOO\ WKHUHDIWHU LQFOXGLQJ WKRVH UHJLVWHUHG
EOLQGDQGSDUWLDOO\VLJKWHG,,,
,Q 7\SH  GLDEHWHV VFUHHQLQJ VKRXOG EHJLQ DW 
\HDUVRIDJH,,D

0HWKRGRIVFUHHQLQJ

$QRSKWKDOPRVFRSHLVDGHTXDWH8VHWURSLFDPLGH
IRUP\GULDVLVXQOHVVFRQWUDLQGLFDWHG,,E
'LDJQRVHDQGFODVVLI\UHWLQRSDWK\,,D

,QGLFDWLRQIRUUHIHUUDOWRDQRSKWKDOPRORJLVW

6DPH'D\
 VXGGHQORVVRIYLVLRQ
 HYLGHQFHRIUHWLQDOGHWDFKPHQW

:LWKLQ:HHN
 QHZYHVVHOIRUPDWLRQ
 HYLGHQFHRISUHUHWLQDODQGRUYLWUHRXVKDHPRUUKDJH
 UXEHRVLVLULGLV

:LWKLQPRQWK








UHGXFWLRQLQYLVXDODFXLW\ZLWKRXWHYLGHQFHRIDERYH
KDUGH[XGDWHVZLWKLQGLVFGLDPHWHURIWKHIRYHD
PDFXODRHGHPD
XQH[SODLQHGUHWLQDOQGLQJV
SUHSUROLIHUDWLYH RU PRUH DGYDQFHG VHYHUH
UHWLQRSDWK\

0DQDJHPHQWRI'LDEHWHV0HOOLWXV

8VHUHWLQDOSKRWRJUDSK\SHUIRUPHGDQGHYDOXDWHGE\
WUDLQHGSHUVRQQHORUVOLWODPSLQGLUHFWRSKWKDOPRVFRS\
,E

5HWLQDOVFUHHQLQJZLOOEHDVIRU6WDQGDUGFDUHLQPRVW
UHVSHFWV



&/,1,&$/35$&7,&(*8,'(/,1(6

)RRW&DUH

([DPLQHIHHWDQQXDOO\FKHFNLQJ
 KLVWRU\ RI SUHYLRXV IRRW XOFHUDWLRQ RU
DPSXWDWLRQV\PSWRPVRISHULSKHUDODUWHULDO
GLVHDVHSK\VLFDORUYLVXDOGLIFXOW\LQVHOI
IRRWFDUH,,D
 IRRW GHIRUPLW\ KDPPHU RU FODZHG WRHV
ERQH SURPLQHQFHV DQG IRRWZHDU IHDWXUHV
RI QHXURSDWK\ GU\ VNLQ FDOOXV GLODWHG
YHLQVRULQFLSLHQWLVFKDHPLDQDLOGHIRUPLW\
RUGDPDJH,,D
 GHWHFWLRQRIQHXURSDWK\E\JPRQRODPHQW
RU+]WXQLQJIRUNQRQWUDXPDWLFSLQ
SULFN,,D
 SDOSDWLRQRIIRRWSXOVHVGRUVDOLVSHGLVDQG
SRVWHULRU WLELDO DQG FDSLOODU\ UHWXUQ WLPH
,,D

3URYLGHIRRWFDUHHGXFDWLRQ,E

$GYLVHDIRRWFDUHSODQEDVHGRQWKHQGLQJV,,E

&ODVVLI\DFFRUGLQJWRQGLQJVDQGPDQDJH
DFFRUGLQJO\

&DWHJRU\
1R$GGHG5LVN

$W5LVN

&ULWHULD

0DQDJHPHQW

1RUPDO

$QQXDO6FUHHQLQJ)RRW
(GXFDWLRQ

1HXURSDWK\RURWKHU
VLQJOHULVNIDFWRU

$WOHDVWPRQWKO\UHYLHZ
H[DPLQHIHHWHYDOXDWHDQG
DUUDQJHIRUIRRWZHDU

'LPLQLVKHGVHQVDWLRQ PRQWKO\UHYLHZH[DPLQH

SOXVIRRWGHIRUPLWLHV IHHWHYDOXDWHDQGDUUDQJHIRU
RUHYLGHQFHRI3$'
IRRWZHDUFRQVLGHUYDVFXODU
UHIHUUDO
3UHYLRXVXOFHUDWLRQRU
9HU\+LJK5LVN DPSXWDWLRQ
+LJK5LVN



,Q)RRWXOFHUDWLRQRULQIHFWLRQUHIHUIRUVSHFLDOLVW
PDQDJHPHQW

0DQDJHPHQWRI'LDEHWHV0HOOLWXV

6HQVRU\ DVVHVVPHQW ZLWK ELRWKHVLRPHWHU LV DQ

RSWLRQFXWRIISRLQWIRUXOFHUULVN!YROWV,,D

'RSSOHU DQNOH EUDFKLDO SUHVVXUH UDWLR  IRU

RFFOXVLYHYDVFXODUGLVHDVHPD\EHXVHG,,D

$ VSHFLDOLVW IRRWFDUH WHDP ZLOO LQFOXGH GRFWRUV

ZLWK D VSHFLDO LQWHUHVW LQ GLDEHWHV IRRW FDUH
SHRSOH ZLWK HGXFDWLRQDO VNLOOV DQG SHRSOH ZLWK
IRUPDOWUDLQLQJLQIRRWFDUHXVXDOO\SRGLDWULVWVRU
WUDLQHGQXUVHV,,D

$OOSDWLHQWVZLWKXOFHUVWREHHYDOXDWHGE\DIRRW
FDUHWHDPIRU,,D
 DSSURSULDWH ZRXQG PDQDJHPHQW GUHVVLQJV
DQGGHEULGHPHQWDVLQGLFDWHG
 FRQVLGHUDWLRQ RI V\VWHPLF DQWLELRWLFV IRU
FHOOXOLWLVRUERQHLQIHFWLRQ
 RSWLPDOSUHVVXUHGLVWULEXWLRQFDVWLQJ
 WUHDWLQJYDVFXODULQVXIFLHQF\
 PDQDJHPHQWRIRVWHRP\HOLWLV
 RSWLPDOEORRGJOXFRVHFRQWURO
 VSHFLDOLVW IRRWZHDU DQG RUWKRWLF FDUH HJ
LQVROHV
 LQGLYLGXDOL]HG GLVFXVVLRQ RI SUHYHQWLRQ RI
UHFXUUHQFH

'RQRWDPSXWDWHXQOHVV
 D GHWDLOHG YDVFXODU HYDOXDWLRQ KDV EHHQ
PDGH,E
 LVFKDHPLF UHVW SDLQ FDQQRW EH PDQDJHG E\
DQDOJHVLDRUUHYDVFXODUL]DWLRQ,E
 D OLIHWKUHDWHQLQJ IRRW LQIHFWLRQ FDQQRW EH
WUHDWHGE\RWKHUPHDVXUHV,E

&RPSUHKHQVLYH FDUH LV LQ JHQHUDO WKLV ZLOO EH DV

6WDQGDUGFDUH


EXWWKHIRRWFDUHWHDPFDQZRXOGLQFOXGHYDVFXODU
VXUJHRQVRUWKRSDHGLFVXUJHRQVRUWKRWLVWVVRFLDO
ZRUNHUVDQGSV\FKRORJLVWV,,,

)RRWSUHVVXUHGLVWULEXWLRQPHDVXUHPHQWVYDVFXODU
VFDQQLQJ DQG DQJLRJUDSK\ FRXOG EH DYDLODEOH WR
WKHIRRWFDUHWHDP,,,


&/,1,&$/35$&7,&(*8,'(/,1(6

1HXURSDWK\

6FUHHQ DQQXDOO\ E\ KLVWRU\ RI V\PSWRPV VHQVRU\

DVVHVVPHQW E\ J PRQRODPHQW WXQLQJ IRUN
QRQWUDXPDWLFSLQSULFNDQGDQNOHUHH[HV

0DQDJHV\PSWRPDWLFSDLQIXOGLDEHWLFQHXURSDWK\

E\
 H[FOXGLQJRWKHUFDXVHV
 VWDELOL]LQJJO\FDHPLFFRQWURO,,E
 WUHDWPHQW ZLWK WULF\FOLF GUXJV LI VLPSOH
DQDOJHVLDLVQRWVXFFHVVIXO,,D

$VVHVV HUHFWLOH G\VIXQFWLRQ E\ KLVWRU\ DQG

H[DPLQDWLRQ
 &RQVLGHU FRQWULEXWLRQV RI RWKHU PHGLFDWLRQ
RUGLVHDVH
 *LYH D WULDO RI D 3'( LQKLELWRU ZKHUH QRW
FRQWUDLQGLFDWHGE\QLWUDWHWKHUDS\,E

'LDJQRVH JDVWURSDUHVLV E\ KLVWRU\ WULDO RI D

SURNLQHWLF GUXJ 0HWRFORSUDPLGH GRPSHULGRQH
DQG LI WURXEOHVRPH UHIHU IRU JDVWULF HPSW\LQJ
VWXGLHV,,,

&KHFN %76+ FUHDWLQLQH DQG WDNH GUXJ

KLVWRU\ WR H[FOXGH RWKHU FDXVHV RI SHULSKHUDO
QHXURSDWK\,,,

)XUWKHU WUHDWPHQW RSWLRQV LQFOXGH SUHJDEDOLQ 

JDEDSHQWLQDQGYDOSURDWHWKHQWUDPDGRO,,E

,QHUHFWLOHG\VIXQFWLRQH[FOXGHGUXJVDQGHQGRFULQH
FRQGLWLRQVFKHFNSURODFWLQDQGWHVWRVWHURQHDQG




&RQVLGHU LQWUDXUHWKUDO RU LQWUDFDYHUQRVDO

GUXJV DQG VH[XDO FRXQVHOLQJ ZKHUH 3'(
LQKLELWRUVIDLORUFDQQRWEHXVHG,,D

'LDJQRVH DXWRQRPLF QHXURSDWK\ E\ UHVWLQJ KHDUW

UDWHDQGKHDUWUDWHUHVSRQVHWRSURYRFDWLRQWHVWV
O\LQJVWDQGLQJ9DOVDOYDGHHSEUHDWKLQJDQGE\
O\LQJDQGVWDQGLQJEORRGSUHVVXUH,,E
 $GYLVH DQDHVWKHWLVWV ZKHQ UHOHYDQW ZKHUH
WKLVLVSUHVHQW

0DQDJHPHQWRI'LDEHWHV0HOOLWXV

&RPSUHKHQVLYH FDUH ZRXOG EH DV IRU 6WDQGDUG FDUH

EXWVFUHHQLQJDQGGLDJQRVWLFWHVWLQJFRXOGDOVRLQFOXGH
DSURJUDPPHRITXDQWLWDWLYHVHQVRU\WHVWLQJYLEUDWLRQ
DQG WHPSHUDWXUH HOHFWURSK\VLRORJ\ DQG DXWRQRPLF
IXQFWLRQWHVWV,,,



&/,1,&$/35$&7,&(*8,'(/,1(6

'LDEHWHV&DUHLQWKH+RVSLWDO

0RQLWRU EORRG JOXFRVH LQ NQRZQ GLDEHWLF SDWLHQWV

LUUHVSHFWLYH RI WKH FDXVH RI DGPLVVLRQ 8ULQH VXJDU
WHVWLQJKDVOLPLWDWLRQVDQGLVGLVFRXUDJHG,Y

$OO SDWLHQWV ZLWK D KLVWRU\ RI GLDEHWHV VKRXOG EH

VSHFLDOO\LGHQWLHGDQGODEHOHG,Y

(QFRXUDJHVHOIPDQDJHPHQWRIGLDEHWHVIRRGFKRLFH
VHOIPRQLWRULQJ LQVXOLQ GRVH DGMXVWPHQW ZKHUH
DSSURSULDWHLQXVXDOZDUGFDUH,,,

0DLQWDLQQHDUQRUPRJO\FDHPLDZLWKRXWK\SRJO\FDHPLD
GXULQJZDUGVWD\DQGSURFHGXUHV,,E

7DEOH*RDOVIRUEORRGJOXFRVHOHYHOV
%ORRG*OXFRVH

3DWLHQWVLQJHQHUDOZDUGV
&ULWLFDOO\LOOSDWLHQWVLQ
LQWHQVLYH&DUHXQLWV



3UHSUDQGLDO

0D[LPXP
UDQGRP

PJGO

PJGO
PJGO

$YHUDJH

PJGO

,QWKHDEVHQFHRIDGLHWLFLDQQXWULWLRQLVWSURYLGH
GLHWDU\DGYLFHE\DWUDLQHGPHPEHURIWKHKHDOWK
FDUHWHDP,,,

'HYHORSHGXFDWLRQSODQDQGIROORZXS,,E

'RFXPHQW DQG DUUDQJH IRU IROORZ XS WHVWLQJ LQ

WKRVHZLWKK\SHUJO\FHPLDLQWKHKRVSLWDOZLWKRXW
DGLDJQRVLVRIGLDEHWHV,,,

$OOSDWLHQWVZLWKVXVSHFWHG'LDEHWLFNHWRDFLGRVLV
'.$DQG+\SHURVPRODU++6VKRXOGEHUHIHUUHG
WR D IDFLOLW\ ZLWK LQWHQVLYH FDUH ,QWUDPXVFXODU
LQVXOLQPD\EHXVHGWLOOWUDQVIHU,,D

0DQDJHPHQWRI'LDEHWHV0HOOLWXV

6WDQGDUG &DUH DV IRU PLQLPDO FDUH DQG ZLWK WKH

IROORZLQJUHFRPPHQGDWLRQV


6HUYLFHV RI D GLHWLFLDQ  QXWULWLRQLVW VKRXOG EH

LQFRUSRUDWHGLQWKHSDWLHQWPDQDJHPHQW,,D

8VHRI6OLGLQJ6FDOHLQVXOLQDORQHLVGLVFRXUDJHG
DV LW UHVXOWV LQ XQDFFHSWDEO\ KLJK UDWHV RI
K\SHUJO\FHPLD K\SRJO\FHPLD DQG LDWURJHQLF
GLDEHWLFNHWRDFLGRVLV,,E

7KHIROORZLQJPHWKRGVDUHUHFRPPHQGHG
 &RQWLQXRXV,9LQVXOLQLQIXVLRQV,,D
 6XEFXWDQHRXV GRVHV RI ORQJDFWLQJ LQVXOLQ
IRU EDVDO FRYHUDJH SUHSUDQGLDO GRVHV RI
UDSLGDFWLQJ LQVXOLQ IRU SUDQGLDO FRYHUDJH
FRUUHFWLRQGRVHVZKHQWKHEORRGJOXFRVH
FRQFHQWUDWLRQH[FHHGVJRDOOHYHOV,,D

8VH D VXLWDEOH SURWRFRO IRU EORRG JOXFRVH

PDQDJHPHQW LQ FULWLFDO FDUH XQLWV LQSDWLHQW
SURFHGXUHV DQG VXUJLFDO RSHUDWLRQV $Q H[DPSOH
RIVXFKSURWRFROLVJLYHQLQWKHDQQH[XUH,,E

7DEOH,QVXOLQLQIXVLRQSURWRFRO
%ORRG*OXFRVH
PJGO

,QVXOLQLQIXVLRQ8QLW+U
$

$

$

$

+\SRJO\FHPLD



















































!







$ $OJRULWKP



&/,1,&$/35$&7,&(*8,'(/,1(6

1RWH


0RYHXSWRWKHQH[WKLJKHUDOJRULWKPLIWKH%ORRG
*OXFRVHLVDERYHWKHJRDO GRHVQRWFKDQJHE\DW
OHDVWPJG/ZLWKLQKU

0RYHGRZQDQDOJRULWKPZKHQ%ORRG*OXFRVHLV
PJG/WZLFH

&RPSUHKHQVLYH&DUHDVIRUVWDQGDUGFDUHDQGZLWKWKH
IROORZLQJUHFRPPHQGDWLRQV



,QIXVLRQ SXPSV VKRXOG EH XVHG IRU GHOLYHU\ RI

LQVXOLQ LQ SDWLHQWV UHTXLULQJ LQWUDYHQRXV LQVXOLQ
,,D

$OOSDWLHQWVZLWK'.$ ++6VKRXOGEHWUHDWHGDW
LQWHQVLYHFDUHIDFLOLW\,,E

0RQLWRULQJ RI EORRG VXJDU LQ SDWLHQWV XQGHUJRLQJ

,9LQVXOLQLQIXVLRQVKRXOGEHGRQHKRXUO\XQWLOWKH
SDWLHQWKDVVWDEOHEORRGJOXFRVH,,E

0DQDJHPHQWRI'LDEHWHV0HOOLWXV

'LDEHWHV&RPSOLFDWLQJ3UHJQDQF\

&ORVHOLDLVRQEHWZHHQWKHHOGVWDIIDWSULPDU\DQWHQDWDO
FDUH DQG WKRVH LQYROYHG LQ GLDEHWHV REVWHWULF DQG
QHRQDWDOFDUHZLOOKHOSWRDFKLHYHWKHGHVLUHGRXWFRPH
RIDKHDOWK\PRWKHUDQGEDE\
3UHSUHJQDQF\FRXQVHOLQJ

$OOZRPHQEHWZHHQDQGVKRXOGEHUHJXODUO\
DGYLVHG WR KDYH SODQQHG SUHJQDQFLHV WR DYRLG
SUREOHPV

$QQXDOO\ GLVFXVV SODQV IRU SUHJQDQF\ DQG UH

HQIRUFHFRQWUDFHSWLYHDGYLFH,,E

3UHJQDQF\ LV EHVW DYRLGHG LQ DGYDQFHG LVFKHPLF

KHDUW GLVHDVH DQG  RU UHQDO GLVHDVH 5HIHU WR D
VSHFLDOLVWLISUHJQDQF\LVGHVLUHG,,E

2IIHUSUHSUHJQDQF\DGYLFHDVDSSURSULDWH
 (GXFDWH RQ LQWHQVLYH JOXFRVH PDQDJHPHQW
XVXDOO\ZLWKLQVXOLQ
 2SWLPL]H JO\FHPLF FRQWURO SUHFRQFHSWLRQ
WDUJHW$&
 6WRS 2+$ DQG VWDUW LQVXOLQ ZKHUH
DSSURSULDWH
 2SWLPL]H%3FRQWUROPP+J
 6WRS $&(, DQG $5% GUXJV FRQYHUW WR
PHWK\OGRSDQLIHGLSLQH65
 6WRSVWDWLQVDQGEUDWHV
 $VVHVV DQG PDQDJH H\H DQG NLGQH\
SUREOHPV
 $VVHVVWK\URLGIXQFWLRQ
 $GYLFHWRVWRSDOFRKRODQGVPRNLQJ,,,
 6WDUW)ROLFDFLG

6FUHHQLQJ IRU XQGLDJQRVHG RU QHZ JHVWDWLRQDO '0 LQ

SUHJQDQF\

,Q ZRPHQ ZLWK DQ\ RI WKH KLJK ULVN IDFWRUV IRU *'0
PHQWLRQHGEHORZ


JLYH KHDOWK\ OLIH VW\OH DGYLFH DW DQWHQDWDO

ERRNLQJ

FKHFNDK33*DIWHUDVWDQGDUGPHDODWDQWHQDWDO
ERRNLQJ


&/,1,&$/35$&7,&(*8,'(/,1(6




,IK33*!PJGOSURFHHGDWRQFHWRDQ
RUDOJ2*77
,IK33*ZLWKRQHULVNIDFWRUSURFHHG
,,,WRJ2*77 EHWZHHQZHHNV

5LVNIDFWRUV

 0DWHUQDODJH!\HDUV
 0DWHUQDO %0, ! NJP JHQHUDOO\ PDWHUQDO
ZHLJKWDWERRNLQJ!NJ
 3UHYLRXVREVWHWULFKLVWRU\VXJJHVWLYHRI*'0ELUWK
ZHLJKW!NJODWHDERUWLRQ,8'UHFXUUHQW3,+
 0DWHUQDOFDQGLGLDVLVUHFXUUHQW87,
 3RO\F\VWLFRYDU\V\QGURPH
 )LUVWGHJUHHUHODWLYHZLWK7'0
 &XUUHQW SUHJQDQF\ ZLWK IHWDO PDFURVRPLD RU
SRO\K\GUDPQLRVLV
0DQDJHPHQWGXULQJSUHJQDQF\




5HLQIRUFH HGXFDWLRQ LQFOXGLQJ FRPSOLFDWLRQV

DQG PDQDJHPHQW PHGLFDO QXWULWLRQ WKHUDS\ DQG
H[HUFLVH
([DPLQH H\HV DW VW SUHQDWDO YLVLW DQG HDFK
WULPHVWHU
5HIHUDOOZRPHQZLWK*'0IRUVSHFLDOLVWFDUH

3RVW3DUWXPPDQDJHPHQW









(QFRXUDJHEUHDVWIHHGLQJ
7ZR PRQWKV DIWHU GHOLYHU\ FKHFN KU 33* RU LI
SRVVLEOH2*77
$GYLFH RQ IXWXUH KLJK ULVN RI GLDEHWHV DQG VWDUW
SUHYHQWLYH OLIH VW\OH PHDVXUHV HYHQ LI QRQ
GLDEHWLF
$GYLFHFKHFNIRU'0DQQXDOO\
5HHQIRUFH WKH QHHG IRU SUHSUHJQDQF\
FRXQVHOLQJ
$Q\IRUPRIUHOLDEOHFRQWUDFHSWLRQFDQEHDGYLVHG
,,ELQFOXGLQJKRUPRQDOFRQWUDFHSWLRQ

$EQRUPDO2*77)3*!PJGOK33*!PJGO:KHQK%*!PJGOPRVW
OLNHO\WRUHTXLUHLQVXOLQ,,,



0DQDJHPHQWRI'LDEHWHV0HOOLWXV

6WDQGDUG&DUH*UDGH<

$UUDQJH  SRLQW EORRG VXJDU VHULHV %66 RIFH

EDVHGRUKRPHEDVHGVHOIPRQLWRULQJDQGUHYLHZ
IUHTXHQWO\ WDUJHW SUHPHDO   PJGO DQG K
SRVWPHDOPJGO,,E

$LPDWJRRGJO\FDHPLFFRQWUROE\UHJXODUUHYLHZ
RI %66 DQG DGMXVW LQVXOLQ WKHUDS\ DSSURSULDWHO\
IRUWKRVHUHTXLULQJLQVXOLQUHYLHZHYHU\ZHHNV

0DQDJHLQVXOLQWKHUDS\DGGUHVVWKHW\SHRILQVXOLQ
SUHIHUDEO\ JLYHQ E\ VHOILQMHFWLRQ DQG WKURXJK
FDUHIXO DQG LQWHQVLYH VHOIPRQLWRULQJ DQG GRVH
DGMXVWPHQW

([SHFWDULVHLQLQVXOLQUHTXLUHPHQWVDVSUHJQDQF\
SURFHHGV,Y

0RQLWRU ZHLJKW JDLQ DQG EORRG SUHVVXUH DQG

DGYLFHWUHDWDFFRUGLQJO\

6WDUWDVSLULQPJGDLO\LQQHSKURSDWK\DQGFKURQLF
K\SHUWHQVLRQIURPZHHNVRIJHVWDWLRQ,,,

&RRUGLQDWH ZLWK REVWHWULFLDQ UHJDUGLQJ IHWDO

JURZWKDQGZHOOEHLQJ

5HFRPPHQG GHOLYHU\ E\  ZHHNV IRU WKRVH RQ

LQVXOLQ DQG E\  ZHHNV IRU WKRVH RQ QXWULWLRQ
WKHUDS\DORQH,,,

/DERXUDQGGHOLYHU\





8VH,9LQVXOLQGXULQJODERXU
6WRSLQVXOLQSRVWSDUWXPDQGUHYLHZUHTXLUHPHQWV
3URYLGH DSSURSULDWH FDUH DQG IDFLOLWLHV IRU WKH
QHZERUQ,Y





2IIHUVSHFLDOLVWRSKWKDOPRORJLFDOUHYLHZ
2IIHUSHUVRQDOGLHWHWLFVXSSRUWDQGWQHVVWUDLQLQJ
6HOIPRQLWRULQJ RI FDSLOODU\ EORRG JOXFRVH GXULQJ
SUHJQDQF\ZRXOGEHSHUIRUPHGPRUHIUHTXHQWO\
&RQWLQXRXVJOXFRVHPRQLWRULQJZRXOGEHDIXUWKHU
SRVVLELOLW\
+E$FZLOOEHSHUIRUPHGDWHDFKFOLQLFDOFRQWDFW
8VH RI FRQWLQXRXV VXEFXWDQHRXV LQVXOLQ LQIXVLRQ
PD\EHFRQVLGHUHGZKHUHDSSURSULDWH,,E







&/,1,&$/35$&7,&(*8,'(/,1(6

1RQ$OFRKROLF)DWW\/LYHU'LVHDVH

5RXWLQHO\ &RQVLGHU UHIHUULQJ IRU KHSDWLF

XOWUDVRQRJUDSK\IRUVFUHHQLQJRI1$)/'$/7$67PD\
EHQRUPDOLQWKHSUHVHQFHRI1$)/',,E

5HFRPPHQG/LIHVW\OHPHDVXUHVGLHWDQGLQFUHDVLQJ
SK\VLFDODFWLYLW\,,D

6RPHZHLJKWUHGXFWLRQLVXVXDOO\UHTXLUHG,,D

0HWDEROLFULVNIDFWRUVVKRXOGEHLGHQWLHGDQGWUHDWHG
LQFOXGLQJRSWLPDOJO\FDHPLFDQGOLSLGFRQWURO8VHRI
VWDWLQVLQSDWLHQWVZLWK1$)/'LVVDIHDQGIUHTXHQW
$/7PRQLWRULQJLVQRWUHTXLUHG,,E

$OO GLDEHWLFV ZLWK 1$)/' VKRXOG SUHIHUDEO\ UHFHLYH

0HWIRUPLQLIWKHUHLVQRFRQWUDLQGLFDWLRQ,,D

5HIHUREHVHZKRGRQRWUHVSRQGWRDWWHPSWHGOLIHVW\OH
PHDVXUHVIRUPHGLFDOWKHUDS\RUVXUJHU\,,,

7KH UROH RI SKDUPDFRWKHUDS\ LV FXUUHQWO\

LQYHVWLJDWLRQDODQGLVQRWUHFRPPHQGHGIRUURXWLQH
FOLQLFDOSUDFWLFH

5RXWLQHO\VFUHHQIRU1$)/'LQWKRVHZLWKPHWDEROLF
ULVN IDFWRUV XVLQJ KHSDWLF 8OWUDVRQRJUDSK\ DQG
OLYHUIXQFWLRQWHVWV,,E

,Q D SDWLHQW ZLWK RWKHUZLVH XQH[SODLQHG $/7

HOHYDWLRQ1$)/'LVKLJKO\OLNHO\WREHWKHFDXVHLI
KHSDWLFLPDJLQJLVFRPSDWLEOHZLWKIDWW\OLYHUDQG
PHWDEROLFULVNIDFWRUVDUHSUHVHQW,,E

)DWW\OLYHUFDQEHGHQHGE\WKHSUHVHQFHRIDWOHDVW
RIDEQRUPDOQGLQJVRQDEGRPLQDOXOWUDVRQRJUDSK\



GLIIXVHO\LQFUHDVHGHFKRJHQHFLW\EULJKWOLYHU

/LYHU HFKRJHQHFLW\ JUHDWHU WKDQ NLGQH\ ZLWK

YDVFXODUEOXUULQJ

'HHSDWWHQXDWLRQRIXOWUDVRXQGVLJQDO

0DQDJHPHQWRI'LDEHWHV0HOOLWXV

0HWDEROLFULVNIDFWRUV






7\SH'0
&HQWUDOREHVLW\ZDLVW!FPIRUPDOHV!FPIRU
IHPDOHV
'\VOLSLGDHPLD
0HWDEROLFV\QGURPH

([FOXGH OLYHU GLVHDVHV +%9 +&9 DXWRLPPXQH

:LOVRQV GLVHDVH KDHPDFKURPDWRVLV DQG DOSKD
 DQWLWU\SVLQ GHFLHQF\ KHSDWLF PDOLJQDQFLHV
LQIHFWLRQV ELOLDU\ WUDFW GLVHDVHV DQG GUXJV
WDPR[LIHQ RHVWURJHQV GLOWLD]HP DPLRGDURQH
9DOSURDWH PHWKRWUH[DWH VWHURLGV VKRXOG EH
H[FOXGHG EHIRUH DVFULELQJ DEQRUPDO OLYHU WHVWV WR
1$)/',,,

0LQLPDODVVHVVPHQW
 %LRFKHPLFDOOLYHUIXQFWLRQVOLSLGV)3*33*
LQQRQGLDEHWLFVEORRGFRXQW
 $QWL+&9+%V$JDQWLQXFOHDUDQWLERG\$1$

2QFH1$)/'LVHVWDEOLVKHGRSWLRQDOWHVWVLQFOXGH,,,


$EGRPLQDO&7LISURSHUO\FRQGXFWHGXOWUDVRXQGLV
QRWLQIRUPDWLYH

/LYHU ELRSV\ LV XVXDOO\ QRW UHTXLUHG IRU GLDJQRVLV

RI 1$)/' +RZHYHU LW VKRXOG     EH FRQVLGHUHG
LQ FDVHV ZKHUH WKHUH LV GLDJQRVWLF XQFHUWDLQW\
LQ SDWLHQWV DW ULVN RI DGYDQFHG KHSDWLF EURVLV
LQWKHDEVHQFHRIFOLQLFDORULPDJLQJHYLGHQFHRI
FLUUKRVLV LQ WKRVH VXEMHFWHG WR ODSDURVFRS\ IRU
DQRWKHUSXUSRVH

,QVXOLQVHQVLWLYLW\,QWKRVHZLWKQRUPDO)%**
2*77PD\EHSHUIRUPHG

3URWKURPELQWLPH



&/,1,&$/35$&7,&(*8,'(/,1(6

$SSHQGL[
$SSHQGL[0HWDEROLF6\QGURPH'LDJQRVWLFFULWHULD

&HQWUDOREHVLW\:DLVWFLUFXPIHUHQFH!FPPHQ
!FPZRPHQ
:LWKRIWKHIROORZLQJ
 %3!PP+J
 7*!PJGO
 +'/IRUPHQIRUZRPHQ
 ,)*!PPROOPJGO,*7'0


,')&ULWHULD

$SSHQGL[6DPSOH'LHW
FDORULHGLHW
7HD

WDEOHVSRRQWEVQRQIDWPLON

%IDVW
FKLFNSHDFXSFRZSHDFXS 

JUHHQJUDPFXSEUHDG VOLFHV
 &XUU\SROVDPEDOWEV
0LGPRUQLQJ

)UXLWVHUYLQJ

/XQFK





5LFHFXSV
9HJHWDEOHVWEV
*UHHQOHDYHVFXS
)LVKRUFKLFNHQSLHFH
)UXLWVHUYLQJ

0LGDIWHUQRRQ

0LONQRQIDW

'LQQHU




5LFHFXS
9HJHWDEOHWEV
'KDOWEV
)UXLWVHUYLQJ

FDORULHGLHW
7HD



WDEOHVSRRQQRQIDWPLON

%IDVW


%UHDG VOLFHVFKLFNSHDFXS
&XUU\SROVDPEDOWEV

0LGPRUQLQJ
/XQFK





)UXLWVHUYLQJ
5LFH FXS
9HJHWDEOHVWEV
*UHHQOHDYHVFXS
)LVKRUFKLFNHQSLHFH
)UXLWVHUYLQJ

0LGDIWHUQRRQ

0LONQRQIDW

0DQDJHPHQWRI'LDEHWHV0HOOLWXV

'LQQHU




5LFHFXS
9HJHWDEOHWEV
'KDOWEV
)UXLWVHUYLQJ

1RWH2QHVHUYLQJRIIUXLWHTXDOVVPDOOEDQDQDRUSLHFH
RI SDSD\D RU  VPDOO DSSOH RU KDOI FXS MXLFH  SLHFH SLQH
DSSOHRUPHORQ

$SSHQGL[&RPPRQLQVXOLQLQMHFWLRQVLWHV