&HUWDLQ7HUPVDQG&RQGLWLRQVRI6DOH
2IIHU$FFHSWDQFH7KHVHWHUPVDQGFRQGLWLRQVWKHVH 7HUPVDUHGHHPHG
SDUWRIDOOFDWDORJVPDQXDOVRURWKHUGRFXPHQWVZKHWKHUHOHFWURQLFRULQZULW
LQJ UHODWLQJ WR WKH VDOH RI JRRGV RU VHUYLFHV FROOHFWLYHO\ WKH *RRGV E\
2PURQ(OHFWURQLFV//&DQGLWVVXEVLGLDU\FRPSDQLHV6HOOHU6HOOHUKHUHE\
REMHFWVWRDQ\WHUPVRUFRQGLWLRQVSURSRVHGLQ%X\HUVSXUFKDVHRUGHURURWKHU
GRFXPHQWVZKLFKDUHLQFRQVLVWHQWZLWKRULQDGGLWLRQWRWKHVH7HUPV3OHDVH
FRQWDFW\RXU 2PURQ UHSUHVHQWDWLYHWR FRQILUPDQ\ DGGLWLRQDOWHUPVIRU VDOHV
IURP\RXU2PURQFRPSDQ\
3ULFHV $OO SULFHV VWDWHG DUH FXUUHQW VXEMHFW WR FKDQJH ZLWKRXW QRWLFH E\
6HOOHU%X\HUDJUHHVWRSD\WKHSULFHLQHIIHFWDWWLPHRIVKLSPHQW
'LVFRXQWV &DVK GLVFRXQWV LI DQ\ ZLOO DSSO\ RQO\ RQ WKH QHW DPRXQW RI
LQYRLFHV VHQW WR %X\HU DIWHU GHGXFWLQJ WUDQVSRUWDWLRQ FKDUJHV WD[HV DQG
GXWLHVDQGZLOOEHDOORZHGRQO\LILWKHLQYRLFHLVSDLGDFFRUGLQJWR6HOOHUV
SD\PHQWWHUPVDQGLL%X\HUKDVQRSDVWGXHDPRXQWVRZLQJWR6HOOHU
2UGHUV6HOOHUZLOODFFHSWQRRUGHUOHVVWKDQQHWELOOLQJ
*RYHUQPHQWDO $SSURYDOV %X\HU VKDOO EH UHVSRQVLEOH IRU DQG VKDOO EHDU DOO
FRVWVLQYROYHGLQREWDLQLQJDQ\JRYHUQPHQWDSSURYDOVUHTXLUHGIRUWKHLPSRU
WDWLRQRUVDOHRIWKH*RRGV
7D[HV$OOWD[HVGXWLHVDQGRWKHUJRYHUQPHQWDOFKDUJHVRWKHUWKDQJHQHUDO
UHDOSURSHUW\ DQGLQFRPH WD[HVLQFOXGLQJDQ\ LQWHUHVWRU SHQDOWLHVWKHUHRQ
LPSRVHGGLUHFWO\ RULQGLUHFWO\RQ 6HOOHURUUHTXLUHGWREHFROOHFWHG GLUHFWO\RU
LQGLUHFWO\E\6HOOHUIRUWKHPDQXIDFWXUHSURGXFWLRQVDOHGHOLYHU\LPSRUWDWLRQ
FRQVXPSWLRQ RU XVH RI WKH *RRGV VROG KHUHXQGHU LQFOXGLQJ FXVWRPV GXWLHV
DQGVDOHVH[FLVHXVHWXUQRYHUDQGOLFHQVHWD[HVVKDOO EH FKDUJHG WR DQG
UHPLWWHGE\%X\HUWR6HOOHU
)LQDQFLDO,IWKHILQDQFLDOSRVLWLRQRI%X\HUDWDQ\WLPHEHFRPHVXQVDWLVIDFWRU\
WR 6HOOHU 6HOOHU UHVHUYHV WKH ULJKW WR VWRS VKLSPHQWV RU UHTXLUH VDWLVIDFWRU\
VHFXULW\RUSD\PHQWLQDGYDQFH,I%X\HUIDLOVWRPDNHSD\PHQWRURWKHUZLVH
FRPSO\ZLWKWKHVH7HUPVRUDQ\UHODWHGDJUHHPHQW6HOOHUPD\ZLWKRXWOLDELOLW\
DQGLQDGGLWLRQWRRWKHUUHPHGLHVFDQFHODQ\XQVKLSSHGSRUWLRQRI*RRGVVROG
KHUHXQGHUDQGVWRSDQ\*RRGVLQWUDQVLWXQWLO%X\HUSD\VDOODPRXQWVLQFOXG
LQJDPRXQWVSD\DEOHKHUHXQGHUZKHWKHURUQRWWKHQGXHZKLFKDUHRZLQJWRLW
E\%X\HU%X\HUVKDOOLQDQ\HYHQWUHPDLQOLDEOHIRUDOOXQSDLGDFFRXQWV
&DQFHOODWLRQ (WF 2UGHUV DUH QRW VXEMHFW WR UHVFKHGXOLQJ RU FDQFHOODWLRQ
XQOHVV%X\HU LQGHPQLILHV6HOOHUIXOO\DJDLQVWDOOFRVWVRU H[SHQVHVDULVLQJLQ
FRQQHFWLRQWKHUHZLWK
)RUFH0DMHXUH6HOOHU VKDOO QRW EH OLDEOH IRU DQ\ GHOD\ RUIDLOXUHLQ GHOLYHU\
UHVXOWLQJIURPFDXVHVEH\RQGLWVFRQWUROLQFOXGLQJHDUWKTXDNHVILUHVIORRGV
VWULNHV RU RWKHU ODERU GLVSXWHV VKRUWDJH RI ODERU RU PDWHULDOV DFFLGHQWV WR
PDFKLQHU\ DFWV RI VDERWDJH ULRWV GHOD\ LQ RU ODFN RI WUDQVSRUWDWLRQ RU WKH
UHTXLUHPHQWVRIDQ\JRYHUQPHQWDXWKRULW\
6KLSSLQJ'HOLYHU\8QOHVVRWKHUZLVHH[SUHVVO\DJUHHGLQZULWLQJE\6HOOHU
D 6KLSPHQWVVKDOOEHE\DFDUULHUVHOHFWHGE\6HOOHU
E 6XFKFDUULHUVKDOODFWDVWKHDJHQWRI%X\HUDQGGHOLYHU\WRVXFKFDUULHU
VKDOOFRQVWLWXWHGHOLYHU\WR%X\HU
F $OOVDOHVDQGVKLSPHQWVRI*RRGVVKDOOEH)2%VKLSSLQJSRLQWXQOHVVRWK
HUZLVHVWDWHGLQZULWLQJE\6HOOHUDWZKLFKSRLQWWLWOHWRDQGDOOULVNRIORVVRI
WKH*RRGVVKDOOSDVVIURP6HOOHUWR%X\HUSURYLGHGWKDW6HOOHUVKDOOUHWDLQD
VHFXULW\LQWHUHVWLQWKH*RRGVXQWLOWKHIXOOSXUFKDVHSULFHLVSDLGE\%X\HU
G 'HOLYHU\DQGVKLSSLQJGDWHVDUHHVWLPDWHVRQO\
H 6HOOHUZLOOSDFNDJH*RRGVDVLWGHHPVSURSHUIRUSURWHFWLRQDJDLQVWQRUPDO
KDQGOLQJDQGH[WUDFKDUJHVDSSO\WRVSHFLDOFRQGLWLRQV
&ODLPV $Q\ FODLP E\ %X\HU DJDLQVW 6HOOHU IRU VKRUWDJH RU GDPDJH WR WKH
*RRGVRFFXUULQJEHIRUHGHOLYHU\WRWKHFDUULHUPXVWEHSUHVHQWHGLQZULWLQJWR
6HOOHUZLWKLQGD\VRIUHFHLSWRIVKLSPHQWDQGLQFOXGHWKHRULJLQDOWUDQVSRUWD
WLRQELOOVLJQHGE\WKHFDUULHUQRWLQJWKDWWKHFDUULHUUHFHLYHGWKH*RRGVIURP
6HOOHULQWKHFRQGLWLRQFODLPHG
:DUUDQWLHVD([FOXVLYH:DUUDQW\6HOOHUVH[FOXVLYHZDUUDQW\LVWKDWWKH
*RRGVZLOOEHIUHHIURPGHIHFWVLQPDWHULDOVDQGZRUNPDQVKLSIRUDSHULRGRI
WZHOYHPRQWKVIURPWKHGDWHRIVDOHE\6HOOHURUVXFKRWKHUSHULRGH[SUHVVHG
LQZULWLQJE\6HOOHU6HOOHUGLVFODLPVDOORWKHUZDUUDQWLHVH[SUHVVRULPSOLHG
E/LPLWDWLRQV6(//(50$.(612:$55$17<255(35(6(17$7,21
(;35(66 25 ,03/,(' $%287 121,1)5,1*(0(17 0(5&+$17$%,/
,7<25),71(66)25$3$57,&8/$5385326(2)7+(*22'6
%8<(5$&.12:/('*(67+$7,7$/21(+$6'(7(50,1('7+$77+(
*22'6 :,// 68,7$%/< 0((7 7+( 5(48,5(0(176 2) 7+(,5
,17(1'('86(6HOOHUIXUWKHUGLVFODLPVDOOZDUUDQWLHVDQGUHVSRQVLELOLW\RI
DQ\W\SHIRUFODLPVRUH[SHQVHVEDVHGRQLQIULQJHPHQWE\WKH*RRGVRURWKHU
ZLVHRIDQ\LQWHOOHFWXDOSURSHUW\ULJKWF%X\HU5HPHG\6HOOHUVVROHREOLJD
WLRQKHUHXQGHU VKDOOEHWR UHSODFH LQWKH IRUP RULJLQDOO\VKLSSHGZLWK %X\HU
UHVSRQVLEOH IRU ODERU FKDUJHV IRU UHPRYDO RU UHSODFHPHQW WKHUHRI WKH QRQ
FRPSO\LQJ *RRG RU DW 6HOOHUV HOHFWLRQ WR UHSD\ RU FUHGLW %X\HU DQ DPRXQW
HTXDOWRWKHSXUFKDVHSULFHRIWKH*RRGSURYLGHGWKDWLQQRHYHQWVKDOO6HOOHU
EHUHVSRQVLEOHIRUZDUUDQW\UHSDLULQGHPQLW\RUDQ\RWKHUFODLPVRUH[SHQVHV
UHJDUGLQJ WKH *RRGV XQOHVV 6HOOHUV DQDO\VLV FRQILUPV WKDW WKH *RRGV ZHUH
SURSHUO\KDQGOHGVWRUHGLQVWDOOHGDQGPDLQWDLQHGDQGQRWVXEMHFWWRFRQWDPL
QDWLRQDEXVHPLVXVHRULQDSSURSULDWHPRGLILFDWLRQ5HWXUQRIDQ\JRRGVE\
%X\HUPXVWEHDSSURYHGLQZULWLQJE\6HOOHUEHIRUHVKLSPHQW6HOOHUVKDOOQRW
EHOLDEOHIRUWKHVXLWDELOLW\RUXQVXLWDELOLW\RUWKHUHVXOWVIURPWKHXVHRI*RRGV
LQFRPELQDWLRQ ZLWKDQ\HOHFWULFDO RUHOHFWURQLF FRPSRQHQWV FLUFXLWVV\VWHP
DVVHPEOLHV RU DQ\ RWKHU PDWHULDOV RU VXEVWDQFHV RU HQYLURQPHQWV $Q\
DGYLFHUHFRPPHQGDWLRQVRULQIRUPDWLRQJLYHQRUDOO\RULQZULWLQJDUHQRWWREH
FRQVWUXHGDVDQDPHQGPHQWRUDGGLWLRQWRWKHDERYHZDUUDQW\
'DPDJH/LPLWV(WF6(//(56+$//127%(/,$%/()2563(&,$/,1',
5(&7 25 &216(48(17,$/ '$0$*(6 /266 2) 352),76 25 352
'8&7,2125&200(5&,$//266,1$1<:$<&211(&7(':,7+7+(
*22'6:+(7+(568&+&/$,0,6%$6(',1&2175$&7:$55$17<
1(*/,*(1&(25 675,&7 /,$%,/,7< )XUWKHU LQ QR HYHQW VKDOO OLDELOLW\RI
6HOOHUH[FHHGWKHLQGLYLGXDOSULFHRIWKH*RRGRQZKLFKOLDELOLW\LVDVVHUWHG
,QGHPQLWLHV%X\HUVKDOOLQGHPQLI\DQGKROGKDUPOHVV6HOOHULWVDIILOLDWHVDQG
LWV HPSOR\HHV IURP DQG DJDLQVW DOO OLDELOLWLHV ORVVHV FODLPV FRVWV DQG
H[SHQVHVLQFOXGLQJDWWRUQH\VIHHVDQGH[SHQVHVUHODWHGWRDQ\FODLPLQYHV
WLJDWLRQOLWLJDWLRQRUSURFHHGLQJZKHWKHURUQRW6HOOHULVDSDUW\ZKLFKDULVHV
RULVDOOHJHGWRDULVHIURP%X\HUVDFWVRURPLVVLRQVXQGHUWKHVH7HUPVRULQ
DQ\ZD\ZLWKUHVSHFWWRWKH*RRGV:LWKRXWOLPLWLQJWKHIRUHJRLQJ%X\HUDW
LWVRZQH[SHQVHVKDOOLQGHPQLI\DQGKROGKDUPOHVV6HOOHUDQGGHIHQGRUVHWWOH
DQ\DFWLRQEURXJKWDJDLQVW6HOOHUWRWKHH[WHQWWKDWLWLVEDVHGRQDFODLPWKDW
DQ\*RRGPDGHWR%X\HUVSHFLILFDWLRQVLQIULQJHGLQWHOOHFWXDOSURSHUW\ULJKWVRI
DQRWKHUSDUW\
3URSHUW\&RQILGHQWLDOLW\7KHLQWHOOHFWXDOSURSHUW\HPERGLHGLQWKH*RRGVLV
WKHH[FOXVLYHSURSHUW\RI6HOOHUDQGLWVDIILOLDWHVDQG%X\HUVKDOOQRWDWWHPSWWR
GXSOLFDWHLWLQDQ\ZD\ZLWKRXWWKHZULWWHQSHUPLVVLRQRI6HOOHU1RWZLWKVWDQG
LQJDQ\FKDUJHVWR%X\HUIRUHQJLQHHULQJRUWRROLQJDOOHQJLQHHULQJDQGWRROLQJ
VKDOO UHPDLQ WKH H[FOXVLYH SURSHUW\ RI 6HOOHU $OO LQIRUPDWLRQ DQG PDWHULDOV
VXSSOLHGE\6HOOHUWR%X\HUUHODWLQJWRWKH*RRGVDUHFRQILGHQWLDODQGSURSUL
HWDU\ DQG %X\HU VKDOO OLPLW GLVWULEXWLRQ WKHUHRI WR LWV WUXVWHG HPSOR\HHV DQG
VWULFWO\SUHYHQWGLVFORVXUHWRDQ\WKLUGSDUW\
0LVFHOODQHRXVD:DLYHU1RIDLOXUHRUGHOD\E\6HOOHULQH[HUFLVLQJDQ\ULJKW
DQGQRFRXUVHRIGHDOLQJEHWZHHQ%X\HUDQG6HOOHUVKDOORSHUDWHDVDZDLYHU
RIULJKWVE\6HOOHUE$VVLJQPHQW%X\HUPD\QRWDVVLJQLWVULJKWVKHUHXQGHU
ZLWKRXW6HOOHUVZULWWHQFRQVHQWF$PHQGPHQW7KHVH7HUPVFRQVWLWXWHWKH
HQWLUHDJUHHPHQWEHWZHHQ%X\HUDQG6HOOHUUHODWLQJWRWKH*RRGVDQGQRSUR
YLVLRQPD\EHFKDQJHGRUZDLYHGXQOHVVLQZULWLQJVLJQHGE\WKHSDUWLHV
G6HYHUDELOLW\,IDQ\SURYLVLRQKHUHRILVUHQGHUHGLQHIIHFWLYHRULQYDOLGVXFK
SURYLVLRQVKDOOQRWLQYDOLGDWHDQ\RWKHUSURYLVLRQH6HWRII%X\HUVKDOOKDYH
QR ULJKW WR VHW RII DQ\ DPRXQWV DJDLQVW WKH DPRXQW RZLQJ LQ UHVSHFW RI WKLV
LQYRLFHI$VXVHGKHUHLQLQFOXGLQJPHDQVLQFOXGLQJZLWKRXWOLPLWDWLRQ
&HUWDLQ3UHFDXWLRQVRQ6SHFLILFDWLRQVDQG8VH
6XLWDELOLW\RI8VH6HOOHUVKDOOQRWEHUHVSRQVLEOHIRUFRQIRUPLW\ZLWKDQ\VWDQ
GDUGVFRGHVRUUHJXODWLRQVZKLFKDSSO\WRWKHFRPELQDWLRQRIWKH*RRGLQWKH
%X\HUVDSSOLFDWLRQRUXVHRIWKH*RRG$W%X\HUVUHTXHVW6HOOHUZLOOSURYLGH
DSSOLFDEOHWKLUGSDUW\FHUWLILFDWLRQGRFXPHQWVLGHQWLI\LQJUDWLQJVDQGOLPLWDWLRQV
RIXVHZKLFKDSSO\WRWKH*RRG7KLVLQIRUPDWLRQE\LWVHOILVQRWVXIILFLHQWIRUD
FRPSOHWHGHWHUPLQDWLRQRIWKH VXLWDELOLW\RI WKH*RRGLQ FRPELQDWLRQZLWK WKH
HQGSURGXFWPDFKLQHV\VWHPRURWKHUDSSOLFDWLRQRUXVH7KHIROORZLQJDUH
VRPH H[DPSOHV RI DSSOLFDWLRQV IRU ZKLFK SDUWLFXODU DWWHQWLRQ PXVW EH JLYHQ
7KLVLVQRWLQWHQGHGWREHDQH[KDXVWLYHOLVWRIDOOSRVVLEOHXVHVRIWKLV*RRG
QRULVLWLQWHQGHGWRLPSO\WKDWWKHXVHVOLVWHGPD\EHVXLWDEOHIRUWKLV*RRG
L 2XWGRRUXVHXVHVLQYROYLQJSRWHQWLDOFKHPLFDOFRQWDPLQDWLRQRUHOHFWULFDO
LQWHUIHUHQFHRUFRQGLWLRQVRUXVHVQRWGHVFULEHGLQWKLVGRFXPHQW
LL (QHUJ\FRQWUROV\VWHPVFRPEXVWLRQV\VWHPVUDLOURDGV\VWHPVDYLDWLRQ
V\VWHPVPHGLFDOHTXLSPHQWDPXVHPHQWPDFKLQHVYHKLFOHVVDIHW\
HTXLSPHQWDQGLQVWDOODWLRQVVXEMHFWWRVHSDUDWHLQGXVWU\RUJRYHUQPHQW
UHJXODWLRQV
LLL 6\VWHPVPDFKLQHVDQGHTXLSPHQWWKDWFRXOGSUHVHQWDULVNWROLIHRU
SURSHUW\3OHDVHNQRZDQGREVHUYHDOOSURKLELWLRQVRIXVHDSSOLFDEOHWR
WKLV*RRG
1(9(586(7+(352'8&7)25$1$33/,&$7,21,192/9,1*6(5,286
5,6.72/,)(253523(57<:,7+287(1685,1*7+$77+( 6<67(0
$6$:+2/(+$6%((1'(6,*1('72$''5(667+(5,6.6$1'7+$7
7+( 6(//(56 352'8&7 ,6 3523(5/< 5$7(' $1' ,167$//(' )25
7+(,17(1'('86(:,7+,17+(29(5$//(48,30(17256<67(0
3URJUDPPDEOH 3URGXFWV 6HOOHU VKDOO QRW EH UHVSRQVLEOH IRU WKH XVHUV SUR
JUDPPLQJRIDSURJUDPPDEOH*RRGRUDQ\FRQVHTXHQFHWKHUHRI
3HUIRUPDQFH'DWD3HUIRUPDQFH GDWD JLYHQLQWKLV FDWDORJ LV SURYLGHG DV D
JXLGHIRUWKHXVHULQGHWHUPLQLQJVXLWDELOLW\DQGGRHVQRWFRQVWLWXWHDZDUUDQW\
,WPD\UHSUHVHQWWKHUHVXOWRI6HOOHUVWHVWFRQGLWLRQVDQGWKHXVHUPXVWFRUUH
ODWHLWWRDFWXDODSSOLFDWLRQUHTXLUHPHQWV$FWXDOSHUIRUPDQFHLVVXEMHFWWRWKH
6HOOHUV:DUUDQW\DQG/LPLWDWLRQVRI/LDELOLW\
&KDQJH LQ 6SHFLILFDWLRQV 3URGXFW VSHFLILFDWLRQV DQG DFFHVVRULHV PD\ EH
FKDQJHGDWDQ\WLPHEDVHGRQLPSURYHPHQWVDQGRWKHUUHDVRQV,WLVRXUSUDF
WLFHWRFKDQJHSDUWQXPEHUVZKHQSXEOLVKHGUDWLQJVRUIHDWXUHVDUHFKDQJHG
RUZKHQVLJQLILFDQWFRQVWUXFWLRQFKDQJHVDUHPDGH+RZHYHUVRPHVSHFLILFD
WLRQVRIWKH*RRGPD\EHFKDQJHGZLWKRXWDQ\QRWLFH:KHQLQGRXEWVSHFLDO
SDUWQXPEHUV PD\ EHDVVLJQHGWR IL[RU HVWDEOLVK NH\VSHFLILFDWLRQV IRU \RXU
DSSOLFDWLRQ 3OHDVH FRQVXOW ZLWK \RXU 6HOOHUV UHSUHVHQWDWLYH DW DQ\ WLPH WR
FRQILUPDFWXDOVSHFLILFDWLRQVRISXUFKDVHG*RRG
(UURUV DQG 2PLVVLRQV 7KH LQIRUPDWLRQ LQ WKLV FDWDORJ KDV EHHQ FDUHIXOO\
FKHFNHGDQGLVEHOLHYHGWREHDFFXUDWHKRZHYHUQRUHVSRQVLELOLW\LVDVVXPHG
IRUFOHULFDOW\SRJUDSKLFDORUSURRIUHDGLQJHUURUVRURPLVVLRQV