$(PSOR\PHQW&RUULGRU $FFHVV,PSURYHPHQWV )XOO%XVLQHVV&DVH 'HFHPEHU



 $(PSOR\PHQW&RUULGRU)%&  'HFHPEHU &RQWHQWV



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

L $(PSOR\PHQW&RUULGRU)%&  'HFHPEHU &RQWHQWV



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±3URJUDPPH $SSHQGL[+±8QFHUWDLQW\/RJ 

LL $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU ([HFXWLYH6XPPDU\ 

 ([HFXWLYH6XPPDU\

 %DFNJURXQG

 &REDOW%XVLQHVV3DUNZDVGHYHORSHGDVSDUWRIDQ(QWHUSULVH=RQHLQDQGLVWKH 8.¶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¶V +(¶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

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU ([HFXWLYH6XPPDU\ 

 7KUHHMXQFWLRQVWKDWDUHRQDFFHVVURXWHVWR&REDOW%XVLQHVV3DUNDUHSULRULW\UDQNHG LQWKHKLHUDUFK\RIMXQFWLRQVLQ1RUWK7\QHVLGH¶V1HWZRUN0DQDJHPHQW3ODQ%DWWOH+LOO 'ULYH$GGLQJWRQ'ULYH0LGGOH(QJLQH/DQHMXQFWLRQLVUDQNHGDQG1HZ

 7KH&REDOW%XVLQHVV3DUNKLJKZD\LQIUDVWUXFWXUHLPSURYHPHQWVFKHPHFRQVLVWVRIWKH IROORZLQJ   -XQFWLRQ 6FKHPH2XWSXWV (OHPHQW  x 3URYLVLRQRIIRXUODQHVRQWKHHDVWHUQFLUFXODWRU\ FDUULDJHZD\DQGILYHODQHVRQWKHZHVWHUQFLUFXODWRU\ FDUULDJHZD\RIWKH$+RO\VWRQH,QWHUFKDQJHURXQGDERXW x &UHDWLRQRIDWKLUGODQHDSSUR[LPDWHO\PORQJRQWKH $DSSURDFKWRWKH$+RO\VWRQH,QWHUFKDQJH x &RQVWUXFWLRQRIDWKLUGODQHDSSUR[LPDWHO\PORQJRQWKH $DSSURDFKWRWKH$+RO\VWRQH,QWHUFKDQJH $+RO\VWRQH x 3URYLGLQJDWKLUGODQHDSSUR[LPDWHO\PORQJRQWKH$ ,QWHUFKDQJH VRXWKERXQGH[LWVOLSRQWRWKH$+RO\VWRQH,QWHUFKDQJH x &UHDWLQJDWKLUGODQHDSSUR[LPDWHO\PORQJRQWKH$ +RO\VWRQH:D\DSSURDFKWRWKH$+RO\VWRQH ,QWHUFKDQJHDQG x &RQVWUXFWLQJDWKLUGODQHDSSUR[LPDWHO\PORQJRQWKH $QRUWKERXQGH[LWVOLSRQWRWKH$+RO\VWRQH ,QWHUFKDQJH x &RQVWUXFWLRQRIDQDGGLWLRQDOZHVWERXQGFDUULDJHZD\RQ WKH$1HZ

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU ([HFXWLYH6XPPDU\ 

EHSHUPLWWHGDQGWKHH[LVWLQJULJKWWXUQSRFNHWIRU PRYHPHQWVIURP$WR%HQWRQ5RDGZLOOEHH[WHQGHGWR PLQOHQJWK x 7KHZHVWERXQG$1HZ

 7KH IXQGDPHQWDO REMHFWLYHV RI WKH KLJKZD\ LQIUDVWUXFWXUH LPSURYHPHQW VFKHPH IRU &REDOW %XVLQHVV 3DUN LV WR DGGUHVV WKH WUDQVSRUWDWLRQ LVVXHV LGHQWLILHG LQ UHODWLRQ WR WUDIILFFRQJHVWLRQDQGGHOD\DQGSXEOLFWUDQVSRUWUHOLDELOLW\LVVXHVRQNH\DFFHVVURXWHV LQWRWKHSDUN   7KH SDFNDJH RI LPSURYHPHQWV RXWOLQHG ZLWKLQ WKH EXVLQHVV FDVH ZLOO DFKLHYH WKH IROORZLQJ 

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU ([HFXWLYH6XPPDU\ 

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¶V LPSRUWDQW FRQWULEXWLRQ WR WKH HFRQRP\ RI WKH 7\QH DQG :HDU FRQXUEDWLRQ ZLWK PDMRU EXVLQHVVHV FRQWLQXLQJ WR UHORFDWH WR &REDOW %XVLQHVV3DUN  

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU ([HFXWLYH6XPPDU\ 

 (FRQRPLF&DVH

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

3URJUDPPH   :HKDYHGHYHORSHGDGHWDLOHGSURJUDPPHIRUGHOLYHULQJWKHVFKHPHWKURXJKWKHIXOO EXVLQHVVFDVHDQGFRQVWUXFWLRQVWDJHV$VXPPDU\RIWKHNH\PLOHVWRQHVDUHSURYLGHG ZLWKLQWKHWDEOHEHORZ  0LOHVWRQH 'HOLYHU\'DWH )RUHFDVW6SHQG )XOO%XVLQHVV&DVH'HYHORSHG 1RYHPEHU  *DWHZD\ -DQXDU\ 1$ &RQVWUXFWLRQ -XO\  0RQWK3RVW6FKHPH0RQLWRULQJ -XO\  \HDUSRVWVFKHPH -XO\  LPSOHPHQWDWLRQPRQLWRULQJ  *RYHUQDQFH2UJDQLVDWLRQ6WUXFWXUH 5ROH   7KHRYHUDOOJRYHUQDQFHRIWKHSURMHFWZLOOEHOHDGE\17&¶VWHFKQLFDOHQJLQHHULQJWHDP ZKLFK ZLOO EH UHVSRQVLEOH IRU SURJUDPPH OHYHO ILQDQFLDO PDQDJHPHQW DQG GHOLYHU\ UHSRUWLQJWRWKH1(/(3DQGWKH1RUWK(DVW/RFDO7UDQVSRUW%RG\ 1(/7%  

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU ([HFXWLYH6XPPDU\ 

 17&KDVD7HFKQLFDO3DUWQHUVKLSLQSODFHZLWK&DSLWD7KHIXOOEXVLQHVVFDVHZLOOEH SUHSDUHG E\ WKH7HFKQLFDO 3DUWQHU DQGVLJQHGRII RQ EHKDOIRI 17&  &DSLWD KDYH D GHOLYHU\SDUWQHU(VKZKRDORQJVLGH&DSLWD¶VORFDOFRQVWUXFWLRQWHDPZLOOFRQVWUXFWWKH VFKHPH,QRUGHUWRLGHQWLI\PLQLPLVHDQGPDQDJHULVNHDUO\DQGSURYLGHUREXVWDQG FRQVLVWHQWVFKHPHFRVWVWKHFRQVWUXFWLRQWHDPKDYHEHHQSURYLGLQJHDUO\FRQWUDFWRU LQYROYHPHQW (&, WRWKHSURMHFWIURPWKHFRQFHSWVWDJHWRWKHGHVLJQVWDJH  5LVN0DQDJHPHQW   :H KDYH LGHQWLILHG WKH LQLWLDO ULVNV WKURXJK XQGHUWDNLQJ D ULVN ZRUNVKRS 7KH SDUWLFLSDQWV RI WKH ULVN ZRUNVKRS ZHUH VSHFLILFDOO\ VHOHFWHG IRU WKH IXOO OLIH RI WKH VFKHPHIURPERWK17&LQKRXVHWHDPDQGWKHLUGHVLJQDQGFRQVWUXFWLRQSDUWQHUV7KH NH\RXWSXWVRIWKHZRUNVKRSLQFOXGHGWKHIROORZLQJ  x ,GHQWLILFDWLRQRIULVNVDQGFXUUHQWFRQWUROVLQSODFH x ,GHQWLILFDWLRQRIULVNRZQHU x 4XDOLWDWLYHDVVHVVPHQWRIULVNV x 5LVNTXDQWLILFDWLRQ IRUWKHSURGXFWLRQRID4XDQWLILHG5LVN$VVHVVPHQWIRU VFKHPHFRVWLQJSXUSRVHV  x 5LVNPDQDJHPHQWDQG x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¶V 35,1&( 0HWKRGRORJ\ ZKLFK FRYHUV WKH PDQDJHPHQW FRQWURODQGRUJDQLVDWLRQRIDSURMHFW   7KHIXOOEXVLQHVVFDVHDQGFRQVWUXFWLRQZLOOEHPDQDJHGXVLQJWKH4XDOLW\6\VWHPIRU ZKLFK ZH DUH DFFUHGLWHG XQGHU,62 ,62 ,62  &DSLWD %06 DQG 35,1&(  0RQLWRULQJ (YDOXDWLRQ 

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU ([HFXWLYH6XPPDU\ 

 $ PRQLWRULQJ DQG HYDOXDWLRQ VWUDWHJ\ KDV EHHQ GHYHORSHG LQ DFFRUGDQFH ZLWK WKH 'HSDUWPHQW IRU 7UDQVSRUW 'I7  0RQLWRULQJ DQG (YDOXDWLRQ )UDPHZRUN IRU /RFDO $XWKRULW\ 0DMRU 6FKHPHV   'XH WR WKH VL]H DQG FRPSOH[LW\ RI WKH &REDOW %XVLQHVV 3DUN VFKHPH WKH PRQLWRULQJ VWUDWHJ\ LV EDVHG XSRQ WKH ³VWDQGDUG´ PRQLWRULQJZKHUHWKHVFKHPHZLOOEHPRQLWRUHGDQGHYDOXDWHGDJDLQVWHLJKWVWDQGDUG PHDVXUHV   &RPPHUFLDO&DVH

 7KLVIXQGLQJVFKHPHLVDSSURSULDWHDVWKHVFKHPHLVOLQHZLWKWKHSROLF\FKDOOHQJHVVHW RXW LQ WKH DGRSWHG $VVXUDQFH )UDPHZRUN HJ LQ VXSSRUWLQJ HPSOR\PHQW DQG LPSURYLQJFRQQHFWLYLW\IURPUHVLGHQWLDODUHDVWRHPSOR\PHQWRSSRUWXQLWLHV   7KHOHYHORIIXQGLQJVRXJKWWRGHOLYHUWKHVFKHPHZRXOGQRWEHPDQDJHDEOHZLWKLQWKH 17&¶V/RFDO7UDQVSRUW3ODQ /73 LQWHJUDWHGWUDQVSRUWEORFNDOORFDWLRQERWKLQWHUPV RIWKHOHYHORIIXQGLQJUHTXLUHGDQGGHOLYHULQJZLWKLQWKHLGHQWLILHGFRQVWUXFWLRQSHULRG 7KHGHILQHGFRQVWUXFWLRQSHULRGKDVEHHQGHWHUPLQHGWRGRYHWDLOLQWRWKHZLGHUORFDO VWUDWHJLFQHWZRUNSURSRVDOVEHLQJGHOLYHUHGE\+LJKZD\V (QJODQGVXFKDVWKH$ $6LOYHUOLQN,QWHUFKDQJHLPSURYHPHQWVFKHPH   ,Q 1RYHPEHU  17& DQG &DSLWD HQWHUHG LQWR D \HDU SDUWQHUVKLS WR GHOLYHU D UDQJHRIVHUYLFHVVHFXULQJPXOWLPLOOLRQSRXQGLQYHVWPHQWLQWKHERURXJK&DSLWDKDYH ZRUNHGDORQJVLGH17&WRGHYHORSWKHRXWOLQHEXVLQHVVFDVH 2%& DQGZHSURSRVHWR FDUU\ RQ WKLV DUUDQJHPHQW WKURXJK WKH GHWDLOHG GHVLJQ FRQVWUXFWLRQ DQG PRQLWRULQJ DQGHYDOXDWLRQVWDJHV&DSLWDKDYHDSSRLQWHGWKHGHOLYHU\SDUWQHU(6+WRVXSSRUWWKH &DSLWD FRQVWUXFWLRQ WHDP DQG HQVXUH WKDW WKH VNLOOV DQG UHVRXUFHV DUH LQ SODFH WR GHOLYHUDVFKHPHRIWKLVVL]HDQGFRPSOH[LW\   )LQDQFLDO&DVH

 7KHVFKHPHFRVWVKDYHEHHQLGHQWLILHGLQWHUPVRIH[SHFWHGRXWWXUQFRVWDQGLQFOXGH VFKHPH SUHSDUDWLRQ GHVLJQ FRQVWUXFWLRQ DQG VXSHUYLVLRQ FRVWV DQG DUH RXWOLQHG ZLWKLQWKHWDEOHEHORZ ,WHP &RVW(VWLPDWH &RQVWUXFWLRQ&RVWV±0DLQ3K\VLFDO:RUNVDQG  LQYHVWLJDWLYHVXUYH\V 6FKHPHSUHSDUDWLRQDQGGHVLJQIHHV  6XSHUYLVLRQ)HHV  5LVN$OORZDQFH  7RWDO6FKHPH&RVW    7KH ORFDO FRQWULEXWLRQ KDV EHHQ SURYLGHG IURP 17& FDSLWDO EXGJHWV 6KRXOG WKH VFKHPH FRVWV H[FHHG WKH  17& ZLOO IXQG WKH VKRUWIDOO WKURXJK LQWHUQDO EXGJHWV 

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 7KH6WUDWHJLF&DVH 

 7KH6WUDWHJLF&DVH

  %XVLQHVV6WUDWHJ\

6WUDWHJLF$LPV  &REDOW %XVLQHVV 3DUN LV DFFHVVLEOH YLD ILYH PDLQ DFFHVV URXWHV ZKLFK LQFOXGH WKH IROORZLQJ   $1HZ

 

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 7KH6WUDWHJLF&DVH 

 7KH $ 1HZ

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 7KH6WUDWHJLF&DVH 

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

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 7KH6WUDWHJLF&DVH 

 $OVRWKHDGMDFHQW$&RDVW5RDGLVDNH\WUDQVSRUWOLQNEHWZHHQ1RUWK7\QHVLGH DQG 1HZFDVWOH ZKLFK SURYLGHV IXUWKHUWUDQVSRUW OLQNV WR WKH 1RUWK (DVW 5HJLRQ7KH $LVDSULQFLSDOURXWHIRUIUHTXHQWEXVVHUYLFHVLQWR1HZFDVWOH1RUWKXPEHUODQG 6RXWK 7\QHVLGH DQG 6XQGHUODQG  7KH $ SURYLGHV D GLUHFW VWUDWHJLF OLQN WR 1RUWKXPEHUODQGDQGFRQQHFWLRQVWRWKHZLGHUVWUDWHJLFURDGQHWZRUNVXFKDVWKH$ IRUOLQNVWR6FRWODQGDQG/RQGRQ   %DWWOH+LOO'ULYH$GGLQJWRQ'ULYH0LGGOH(QJLQH/DQHMXQFWLRQLVUDQNHGDQG1HZ

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³KLJKOHYHO´SURJUDPPHPDQDJHPHQWUROHRIWKH$(PSOR\PHQW &RUULGRU VFKHPH WR HQVXUH WKDW NH\ PLOHVWRQHV DUH GHOLYHUHG LQ D WLPHO\ IDVKLRQ WR EXGJHWDQGWKDWSURJUHVVLVHIIHFWLYHO\UHSRUWHGWRWKH1(/(3  6WDNHKROGHU0DQDJHPHQW 

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 7KH6WUDWHJLF&DVH 

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³UHDO LVVXH´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

 &REDOW %XVLQHVV 3DUN FXUUHQWO\ HPSOR\V  VWDII  DQGLVWKHODUJHVWRIILFH SDUNLQWKH8.1HDUO\YHKLFOHWULSVFXUUHQWO\WUDYHOWRDQGIURPWKHEXVLQHVVSDUN GXULQJWKH$0DQG30 SHDNV7KHUHDUHILYHDFFHVVURXWHVLQWRWKHEXVLQHVVSDUN HDFKVXIIHULQJIURPSHDNSHULRGWUDIILFFRQJHVWLRQDQGGHOD\HGMRXUQH\WLPHVWRYDU\LQJ GHJUHHV 7KH $ 1HZ

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 7KH6WUDWHJLF&DVH 

 $+RO\VWRQH,QWHUFKDQJHDQG$1HZ

6WUDWHJLF2YHUYLHZ   7KH$1HZ

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 7KH6WUDWHJLF&DVH 

3UREOHP%DUULHUVWR*URZWK±(QDEOLQJ(PSOR\PHQW6LWHVDQG5HVLGHQWLDO 'HYHORSPHQWWREHGHOLYHUHG   7KH$1HZ

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 7KH6WUDWHJLF&DVH 

 :KLOVW WKH SXEOLF WUDQVSRUW PRGDO VKDUH LV VWLOO JRRG WKHUH KDV EHHQ D QRWLFHDEOH UHGXFWLRQLQXSWDNHRIEXVMRXUQH\IURPQHZHPSOR\HHVWRWKHVLWH,WLVWKHUHIRUHYLWDO WRUHGXFHWKHGHOD\VH[SHULHQFHGE\WKHEXVHVZLWKLQ&REDOWRUULVNH[DFHUEDWLQJWKH H[LVWLQJ WUDIILF FRQJHVWLRQ JHQHUDWHG E\ WKH KLJK SURSRUWLRQ RI VLQJOH RFFXSDQF\ YHKLFOHV   %DFNJURXQGWR6FKHPH'HYHORSPHQW

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³UDW UXQQLQJ´ WUDIILF DYRLGLQJ 6LOYHUOLQN 7KH IXWXUH KLJKZD\ QHWZRUN LQ WKLV DUHD RI 1RUWK 7\QHVLGH ZLOO RSHUDWH IDU PRUH HIIHFWLYHO\ ZLWK SDUDOOHODGMDFHQW URXWHV UHWXUQLQJ WR QRUPDOWUDIILFYROXPHV   'HOLYHU\RIWKH$6LOYHUOLQNVFKHPHZLOOLQFUHDVHSUHVVXUHRQWKRVHMXQFWLRQVDURXQG LWZKHUHFDSDFLW\LVVXHVKDYHQRW\HWEHHQUHVROYHG7KH$+RO\VWRQH,QWHUFKDQJH DQG$1HZ

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 7KH6WUDWHJLF&DVH 

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

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 7KH6WUDWHJLF&DVH 

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

  

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 7KH6WUDWHJLF&DVH 

 7KH SUHIHUUHG VFKHPH RSWLRQ ZDV WHVWHG LQ WKH 9,66,0 PRGHO XVLQJ IXOO 029$ HQDEOHG G\QDPLF VLJQDO WLPLQJV GHYHORSHG EDVHG RQ WKH IXWXUH WUDIILF IORZV 7KH G\QDPLFQDWXUHRIWKHWLPLQJVUHDFWVWRFKDQJHVLQWUDIILFGHPDQGVDOORZLQJWLPLQJVWR UHVSRQGWRSHDNSHULRGV   7KLVPRGHOKDVUHFHQWO\EHHQXVHGWRDVVHVVWKHLPSDFWVRIWKH:HVW6KLUHPRRU5HWDLO 3DUN SODQQLQJ DSSOLFDWLRQ DQG KDV EHHQ UHYLHZHG E\ +LJKZD\V (QJODQG DQG WKHLU FRQVXOWDQWV   :KDWLVWKHLPSDFWRIQRWFKDQJLQJ

 $VSDUWRIWKHPRGHOOLQJH[HUFLVHWKHVFKHPHRSWLRQVKDYHEHHQFRPSDUHGZLWKD³'R 0LQLPXP´RSWLRQZKLFKUHSUHVHQWVWKHORFDOKLJKZD\QHWZRUNZLWKQRFKDQJHV7DEOH EHORZVXPPDULVHVWKHFXUUHQW%DVHMRXUQH\WLPHVREVHUYHGRSHQLQJ\HDUMRXUQH\ WLPHV '6 DQGWKHGLIIHUHQFHEHWZHHQZLWKDQGZLWKRXWVFKHPHRQRSHQLQJ\HDU '6 Y%DVH   7DEOH±$+RO\VWRQHDQG$-RXUQH\7LPH&KDQJHV VHFV  AM PM Journey Time Route Base DS DS v Base Base DS DS v Base A19 SB Off-slip 98 72 -25 74 47 -27 A191 Holystone Way EB 88 85 -3 95 72 -23 A19 NB Off-slip 102 107 5 107 92 -16 A186 WB 128 63 -65 79 61 -18 A191 WB to A19 NB 56 58 1 63 65 2 A191 Holystone to Cobalt North EB 86 86 0 93 80 -13 Park Lane to Cobalt North WB 102 56 -47 51 27 -24 Cobalt Central to Holyfields 103 101 -2 166 112 -54 Holyfields to Holystone 48 58 10 54 80 26 Cobalt North to Cobalt Central SB 78 74 -5 76 73 -3 Quicksilver to Holyfields 61 60 -2 118 70 -48 A191 to A19 SB 22 22 0 22 21 -1 A191 to Holystone Way WB 30 29 -1 30 30 0 Holystone Village approach 20 68 48 29 145 116 Cobalt North to Quicksilver Way 28 26 -2 27 25 -2 Quicksilver Way to Park Lane 104 104 0 152 99 -53 

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 7KH6WUDWHJLF&DVH 

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

2EMHFWLYH(QDEOHWKHIXOOGHYHORSPHQWRIWKH&REDOW%XVLQHVV3DUNDQGFRQWULEXWH WRWKHFUHDWLRQDQGUHWHQWLRQRIQHZMREVZLWKLQWKH1(/(3DUHD   ,PSURYHPHQWVWRWKH$+RO\VWRQH,QWHUFKDQJHDQGZLGHQLQJRIWKH$1HZ

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 7KH6WUDWHJLF&DVH 

 7DUJHWHG UHFUXLWPHQW DQG WUDLQLQJ LV HPEHGGHG LQWR 1RUWK 7\QHVLGH &RXQFLO¶V SURFXUHPHQW SROLFLHV DQG KHQFH FRQVWUXFWLRQ ZRUN RQ WKH VFKHPH ZRXOG PD[LPLVH UHFUXLWPHQWVNLOOVDQGDSSUHQWLFHVKLSRSSRUWXQLWLHV  2EMHFWLYH  ,PSURYH SXEOLF WUDQVSRUW MRXUQH\ WLPH UHOLDELOLW\ WRIURP WKH &REDOW %XVLQHVV3DUN   'XULQJ SHDN SHULRGV MRXUQH\ WLPHV LQWRRXW RI WKH &REDOW %XVLQHVV 3DUN LQFUHDVH VLJQLILFDQWO\7KLVUHVXOWVLQRSHUDWLRQDOGLIILFXOWLHVIRUVHYHUDOEXVVHUYLFHVWKDWRSHUDWH ZLWKLQ WKH SDUN DQG FDQ OHDG WR VHUYLFH WLPHWDEOHV EHFRPLQJ XQSUHGLFWDEOH 7KH EXV PRGDOVSOLWIRUWKH&REDOW%XVLQHVV3DUNVWDIILVYHU\JRRGIRUDQRXWRIWRZQVLWHZLWK RIVWDIIFRPPXWLQJE\WKLVPRGH   (QVXULQJ WKLV PRGDO VSOLW UHPDLQV KLJK DQG UHGXFLQJ WKH QHHG IRU VLQJOH RFFXSDQF\ YHKLFOH WULSV LV NH\ WR HQVXULQJ WKDW WKH EXVLQHVV SDUN PLWLJDWHV LWV LPSDFW XSRQ WKH ORFDO KLJKZD\ QHWZRUN 5HGXFLQJ H[LVWLQJ MRXUQH\ WLPHV IRU SXEOLFWUDQVSRUWZLOODOVR FRQWULEXWHWRPRGDOVZLWFKIURPVKRUWFDUMRXUQH\VZKHUHWUDYHOWLPHVDUHFRPSDUDEOH   7KHDFFHVVLPSURYHPHQWVVKRXOGGHOLYHUHOHPHQWVRIEXVSULRULW\ZKHUHLVSUDFWLFDEOH DQGUHPRYHVRXUFHVRIGHOD\DORQJWKHNH\EXVFRUULGRUV  2EMHFWLYH5HGXFHWKHDYHUDJHGHOD\LQWRRXWRIWKH&REDOW%XVLQHVV3DUNIURPWKH $+RO\VWRQH,QWHUFKDQJHZLWKLQPRQWKVRIWKH$6LOYHUOLQNVFKHPHFRPSOHWLRQ   7KH NH\ WUDIILF URXWHV LQWR WKH &REDOW %XVLQHVV 3DUN DQG DGMDFHQW $ FRUULGRU HPSOR\PHQWVLWHVVXIIHUIURPVLJQLILFDQWFRQJHVWLRQGXULQJSHDN SHULRGV &REDOW LQ SDUWLFXODU H[SHULHQFHV PDMRU GHOD\V RQ WKH $ EHWZHHQ $ +RO\VWRQH DQG WKH DFFHVVMXQFWLRQVWRWKHEXVLQHVVSDUN   7KHUHLVDQHHGWRUHVROYHWKHVHFRQJHVWLRQSUREOHPVZKHUHSRVVLEOHDQGWRUHGXFH WKHLPSDFWXSRQDGMDFHQWQHLJKERXUKRRGV'XHWRWKHVFDOHRIWKHEXVLQHVVSDUNVWDII WUDYHOIURPDODUJHFDWFKPHQWZKLFKWKHUHIRUHOHDGVWRDVLJQLILFDQWSURSRUWLRQWUDYHOOLQJ E\FDU7KRVHRSSRUWXQLWLHVWRUHGXFHFDUWULSVWRWKHVLWHDUHEHLQJH[SORUHGEXWWKH IXOO\ GHYHORSHG EXVLQHVV SDUN ZLOO HPSOR\ DSSUR[LPDWHO\  VWDII ZLWK D WDUJHW PRGDO VSOLW RI  7KLV ZLOO VWLOO UHVXOW LQ KLJK YROXPHV RI WUDIILF WKDW QHHG WR EH PDQDJHGRQWKHORFDODQGVWUDWHJLFKLJKZD\QHWZRUN   +LJKZD\V(QJODQGDUHLQYHVWLQJDSSUR[LPDWHO\ 0LQWRWKH$6LOYHUOLQN-XQFWLRQ ,PSURYHPHQW 6FKHPH 7KH FRPSOHWHG VFKHPH ZLOO UHVXOW LQ VLJQLILFDQW FDSDFLW\ LPSURYHPHQWV DQG DQ LQFUHDVH LQ WUDIILF HQWHULQJ WKH HPSOR\PHQW FRUULGRU IURP WKH $ 7KH SUHVVXUH ZLOO WKHQ EH RQ WKH ORFDO KLJKZD\ QHWZRUN WR FDWHU IRU WKHVH UHGLVWULEXWHGWULSV 

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 7KH6WUDWHJLF&DVH 

 6FRSH

 7KH $ (PSOR\PHQW &RUULGRU $FFHVV ,PSURYHPHQWV VFKHPH DLPV WR GHOLYHU VLJQLILFDQW FRQJHVWLRQ UHOLHI DW WKH $ +RO\VWRQH LQWHUFKDQJHDORQJWKH$1HZ

&RRUGLQDWLRQ RI 0DMRU 6FKHPHV ZLWKLQ 1RUWK 7\QHVLGH DQG DGMRLQLQJ DXWKRULWLHV   7KH +LJKZD\V $JHQF\ LV SURPRWLQJ D PDMRU VFKHPH DW $$ &RDVW 5RDG 6LOYHUOLQN  LQWHUFKDQJH VXEMHFW WR JRYHUQPHQW DSSURYDO ZKLFK LV H[SHFWHG WR FRPPHQFHLQVXPPHU 

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 7KH6WUDWHJLF&DVH 

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³NQRFN RQ´ LVVXHV VXFK DV GLPLQLVKLQJ VWDNHKROGHU DFFHSWDQFH DV DQ LPSDFW RI SRRU SURJUDPPH FRRUGLQDWLRQ SURYLGHVDPDMRUGHOLYHU\FRQVWUDLQW7KH³ZLQGRZRIRSSRUWXQLW\´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

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 7KH6WUDWHJLF&DVH 

 6WDNHKROGHU&RQVLGHUDWLRQV

 7KHUH DUH QR PDMRU FRQIOLFWV EHWZHHQ VWDNHKROGHU JURXSV DV D SDUW RI WKLV VFKHPH KRZHYHU WKURXJK WKH GHVLJQ SURFHVV WKHUH KDV EHHQ WKH QHHG WR ³WUDGH RII´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

 6WDNHKROGHUVKDYHEHHQLGHQWLILHGWKURXJKGLVFXVVLRQVEHWZHHQWKHGHVLJQWHDPDQG WKHFOLHQW7KHNH\VWDNHKROGHUJURXSVLQFOXGH  x /RFDOFRXQFLOORUVZKRZLOOEHFRQVXOWHGWKURXJKRXWWKHOLIHRIWKHSURMHFWIURPGHVLJQWRSRVW FRPSOHWLRQ x .H\LQWHUQDOGHSDUWPHQWVZLWKLQ1RUWK7\QHVLGH&RXQFLOLQFOXGLQJ 1HWZRUN0DQDJHPHQW 1HWZRUNRSHUDWLRQV&\FOLQJ3ODQQLQJDQG/HJDO6HUYLFHV x 7\QH :HDU870&WRHQVXUHWHFKQRORJLHVLQWURGXFHGDUH870&FRPSOLDQW x /RFDOEXVRSHUDWRUVZKRVHLQWHUHVWLVWRPDLQWDLQDFFHVVLELOLW\E\EXVLQWKHDUHD1H[XV ZKRDVWKH7\QHDQG:HDU3DVVHQJHU7UDQVSRUW([HFXWLYHZKRKDYHDYHVWHGLQWHUHVWLQ WKHRSHUDWLRQRIWKHSXEOLFWUDQVSRUWQHWZRUN x /RFDOEXVLQHVVHVZKRVHLQWHUHVWVDUHOLNHO\WREHPLQLPLVLQJGHOD\VDQGPDLQWDLQLQJDQG LPSURYLQJDFFHVVLELOLW\E\DOOPRGHVRIWUDQVSRUWIRUMRXUQH\VWRDQGIURPWKHLUVLWHVWKHVH ZRXOGLQFOXGHWKRVHZLWKLQWKH6DQG\/DQHLQGXVWULDOHVWDWH x 8WLOLWLHV DQG VWDWXWRU\ FRQVXOWHHV LQFOXGLQJ HPHUJHQF\ VHUYLFHV ZKR ZLOO EH FRQVXOWHG WKURXJKWKH&RXQFLOV¶FRQVXOWDWLRQSURFHGXUHEXWZLOODOVRSURYLGHLQIRUPDWLRQ x /RFDOUHVLGHQWVDQGUHVLGHQWVJURXSVDQGLQVWLWXWLRQVVXFKDVVFKRROV x /RFDOIRFXVJURXSVVXFKDVF\FOHIRUXPVDQGGLVDELOLW\IRUXPVWKDWZLOO KDYHD VSHFLDOLVW LQWHUHVWLQWKHSURSRVDOV   6WDNHKROGHU&RQIOLFWV

 7KHUH DUH QR PDMRU FRQIOLFWV EHWZHHQ VWDNHKROGHU JURXSV DV D SDUW RI WKLV VFKHPH KRZHYHU WKURXJK WKH GHVLJQ SURFHVV WKHUH KDV EHHQ WKH QHHG WR ³WUDGH RII´ LQ WKH VFDOH RI EHQHILWV HDFK XVHU W\SH ZLOO FODLP 7KH FRQIOLFWV EHWZHHQ VWDNHKROGHUV LV VXPPDULVHGEHORZ  

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 7KH6WUDWHJLF&DVH 

 7KH2SWLRQ

 7KH$(PSOR\PHQW&RUULGRU$FFHVV,PSURYHPHQWVVFKHPHHOHPHQWVDUHGHWDLOHGLQ WKH WDEOH EHORZ  'UDZLQJV RI DOO WKH SURSRVHG VFKHPH HOHPHQWV DUH LQFOXGHG LQ $SSHQGL[$  'HVFULSWLRQRIWKH2SWLRQ   -XQFWLRQ 6FKHPH2XWSXWV (OHPHQW  x 3URYLVLRQRIIRXUODQHVRQWKHHDVWHUQFLUFXODWRU\ FDUULDJHZD\DQGILYHODQHVRQWKHZHVWHUQFLUFXODWRU\ FDUULDJHZD\RIWKH$+RO\VWRQH,QWHUFKDQJHURXQGDERXW x &UHDWLRQRIDWKLUGODQHDSSUR[LPDWHO\PORQJRQWKH $DSSURDFKWRWKH$+RO\VWRQH,QWHUFKDQJH x &RQVWUXFWLRQRIDWKLUGODQHDSSUR[LPDWHO\PORQJRQWKH $DSSURDFKWRWKH$+RO\VWRQH,QWHUFKDQJH $+RO\VWRQH x 3URYLGLQJDWKLUGODQHDSSUR[LPDWHO\PORQJRQWKH$ ,QWHUFKDQJH VRXWKERXQGH[LWVOLSRQWRWKH$+RO\VWRQH,QWHUFKDQJH x &UHDWLQJDWKLUGODQHDSSUR[LPDWHO\PORQJRQWKH$ +RO\VWRQH:D\DSSURDFKWRWKH$+RO\VWRQH ,QWHUFKDQJHDQG x &RQVWUXFWLQJDWKLUGODQHDSSUR[LPDWHO\PORQJRQWKH $QRUWKERXQGH[LWVOLSRQWRWKH$+RO\VWRQH ,QWHUFKDQJH x &RQVWUXFWLRQRIDQDGGLWLRQDOZHVWERXQGFDUULDJHZD\RQ WKH$1HZ

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 7KH6WUDWHJLF&DVH 

x 7KHH[LVWLQJEXVVWRSRQWKHHDVWERXQGFDUULDJHZD\RI $1HZ

2EMHFWLYH(QDEOHWKHIXOOGHYHORSPHQWRIWKH&REDOW%XVLQHVV3DUNDQG FRQWULEXWHWRWKHFUHDWLRQDQGUHWHQWLRQRIQHZMREVZLWKLQWKH1(/(3DUHD   7KHFDSDFLW\LPSURYHPHQWVGHOLYHUHGE\WKHSURSRVHG$ZLGHQLQJDQGDVVRFLDWHG ZRUNVDW$+RO\VWRQH,QWHUFKDQJHZLOOHQVXUHWKDWSUHGLFWHGIXWXUHWUDIILFOHYHOVFDQ EHDFFRPPRGDWHGZLWKRXWDVHYHUHLPSDFWXSRQWKHORFDOKLJKZD\QHWZRUN 

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 7KH6WUDWHJLF&DVH 

2EMHFWLYH,PSURYHSXEOLFWUDQVSRUWMRXUQH\WLPHUHOLDELOLW\WRIURPWKH&REDOW %XVLQHVV3DUN   7KHSURSRVHGVFKHPHZLOODOORZERWKODQHVWRWXUQULJKWLQWRWKH&REDOWEXVLQHVVSDUN IURP WKH $ 1HZ

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 7KH6WUDWHJLF&DVH 

 7KH SURSRVDO LQYROYHV EDQQLQJ D WUDIILF PRYHPHQW RXW RI %HQWRQ 5RDG :HVW $OORWPHQW  WR UHGXFH WKH VDIHW\ FRQFHUQV DVVRFLDWHG ZLWK WXUQLQJ DFURVV  ODQHV RI WUDIILF$QDOWHUQDWLYHURXWHDOUHDG\H[LVWE\WKH$+RO\ILHOGVURXQGDERXWZKLFKVL WKHQH[WMXQFWLRQHDVWRIZKHUHWKHVHYHKLFOHVZRXOGKDYHMRLQHGWKHQHWZRUN7KHUHLV DQHJOLJLEOHMRXUQH\WLPHGLVEHQHILWDVVRFLDWHGZLWKWKLVORFDOGLYHUVLRQDQGWKHEDVH WUDIILFVXUYH\VVKRZIHZYHKLFOHVSHUIRUPLQJWKLVPDQRHXYUH  

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 7KH(FRQRPLF&DVH 

 7KH(FRQRPLF&DVH

 3URSRUWLRQDWH$SSURDFKWR6FKHPH$SSUDLVDO

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x 7RGHWHUPLQHIXWXUHWUDIILFIORZV±LQSDUWLFXODUDQ\UHDVVLJQPHQWHIIHFWVGXHWRERWKWUDIILF JURZWKDQGWKHSURSRVHGVFKHPH x 7RGHWHUPLQHLPSDFWVRQMRXUQH\WLPHVDQGWKHUHIRUHFDUU\RXWDQHFRQRPLFDSSUDLVDORI WKHSURSRVHGVFKHPHDQG x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¶VERURXJKZLGH6$7851 PRGHO ZKLFK FRYHUHG WKH DUHD RYHU ZKLFK WUDIILF UHDVVLJQPHQW RQ ERWK ZLWK DQG ZLWKRXWVFKHPHVFHQDULRVZDVFRQVLGHUHGOLNHO\7KHWUDIILFIORZVIURPWKH6$7851 PRGHOZHUHWKHQXVHGWRGHYHORSD9,66,0PRGHOFRYHULQJWKH$FRUULGRUH[WHQWV 7KH9,66,0PRGHOZDVWKHQXVHGWRFDUU\RXWDQHFRQRPLFDSSUDLVDORIWKHVFKHPH  6$78510RGHO  7KH 17& VWUDWHJLF QHWZRUN 6$7851 PRGHO XVHG WR DVVHVV WKH VFKHPH KDV EHHQ GHYHORSHG IURP D PRGHO SUHSDUHG RQ EHKDOI RI WKH +LJKZD\V $JHQF\ IRU WKH DVVHVVPHQWRIWKH$&RDVW5RDG$6LOYHUOLQN,PSURYHPHQW6FKHPH 

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 7KH(FRQRPLF&DVH 

 7KH $ +$0 LV D 6$7851 KLJKZD\ DVVLJQPHQW PRGHO FDOLEUDWHG DQG YDOLGDWHG DJDLQVW  EDVH \HDU GDWD ± WUDIILF IORZV DQG MRXUQH\ WLPHV 7KH PRGHO ZDV GHYHORSHG VSHFLILFDOO\ WR DOORZ D UREXVW DVVHVVPHQW RI WKH OLNHO\ LPSDFWV DQG HFRQRPLF MXVWLILFDWLRQ RI WKH SURSRVHG $ 7 $ &RDVW 5RDG6LOYHUOLQN ,PSURYHPHQW6FKHPH   7KH PDWULFHV KDYH EHHQ GHYHORSHG XVLQJ D FRPELQDWLRQ RI REVHUYHG 2' GDWD IURP  5RDG 6LGH ,QWHUYLHZ 56,  VXUYH\V DQG PDWULFHV IURP WKH 7\QH DQG :HDU 7UDQVSRUW 3ROLF\ 0RGHO 730  ZLWK PDWUL[ HVWLPDWLRQ LPSOHPHQWHG WR DFKLHYH DFFHSWDEOH FDOLEUDWLRQ DQG YDOLGDWLRQ DJDLQVW IORZ DQG MRXUQH\ WLPH GDWD 7KH 56, VXUYH\V FDUULHG RXW LQ  WDUJHWHG NH\ PRYHPHQWV DW WKH $ MXQFWLRQV ZLWK WKH $ WKH $ WKH $ DQG WKH 7\QH 7XQQHO WRJHWKHU ZLWK D VXUYH\ RQ 0LGGOH (QJLQH/DQHVRXWKZHVWRI7KH6LOYHUOLQN   $OWKRXJKWKH$+$0FDOLEUDWHVDQGYDOLGDWHVZHOODJDLQVW:HE7$*JXLGHOLQHVWKHUH DUH D QXPEHU RI UHDVRQV ZK\ LWV XVH WR PRGHO WKH LPSDFWV RI GHYHORSPHQW DFURVV 1RUWK 7\QHVLGH LV OLNHO\ WR EH SUREOHPDWLF $ VLJQLILFDQW SURSRUWLRQRIWKH1RUWK 7\QHVLGHQHWZRUNKDVEHHQFRGHGXVLQJVSHHGIORZFXUYHVZLWKQRGHWDLOHGMXQFWLRQ FRGLQJ7KHUHIRUHWKHEDVHPRGHOKDVEHHQH[WHQVLYHO\DPHQGHGWRUHSODFHDOORIWKH VSHHGIORZ FXUYHV ZLWK GHWDLOHG FRGLQJ RI DOO VLJQLILFDQW MXQFWLRQV ZLWKLQ 1RUWK 7\QHVLGH   ,Q RUGHU WR LPSURYH WKH DFFXUDF\ RI WKH EDVH PRGHO PDWUL[ HVWLPDWLRQ ZDV DSSOLHG XVLQJDOODYDLODEOHWUDIILFFRXQWGDWDIRUWKH1RUWK7\QHVLGHQHWZRUNFROOHFWHGEHWZHHQ  DQG  IDFWRUHG WR  OHYHOV  7KH DFFXUDF\ RI WKH PRGHO ZDV WKHQ DVVHVVHGDJDLQVWWUDIILFIORZDQGMRXUQH\WLPHREVHUYHGGDWD,QERWKFDVHVWKHPRGHO PHWWKHDFFHSWDELOLW\FULWHULDVHWRXWLQ:HE7$*   +DYLQJGHYHORSHGFDOLEUDWHGEDVHDPDQGSPSHDNKRXUPRGHOVPRGHOVZHUHWKHQ GHYHORSHGIRUIRUHFDVW\HDUVRI RSHQLQJ\HDU DQG GHVLJQ\HDU )RU WKH EDVH \HDU PDWULFHVZHUH LQFUHDVHG E\ DSSO\LQJ 17(07HPSUR HVWLPDWHGJURZWK IRU7\QH :HDU   )RU  JURZWK ZDV GHWHUPLQHG EDVHG RQ GHYHORSPHQW SURSRVDOV LGHQWLILHG LQ WKH 'UDIW 1RUWK 7\QHVLGH /RFDO 3ODQ ,QLWLDOO\ WKHVH DVVXPSWLRQV ZHUH DGMXVWHG WR EH FRPSDWLEOH ZLWK WKH SODQQLQJ DVVXPSWLRQV ZLWKLQ 7(0352 WKLV HQVXUHG WKDW WKH JURZWK DVVXPSWLRQV ZHUH FRQVLVWHQW ZLWK 7HPSUR FHQWUDO JURZWK HVWLPDWHV 7KH GHYHORSPHQW WULS WRWDOV ZHUH WKHQ HVWLPDWHG EDVHG RQ D FRPELQDWLRQ RI DJUHHG 7UDQVSRUW $VVHVVPHQW WULS UDWHV DQG QHZ WULS UDWHV GHULYHG IURP 75,&6 7KH GHYHORSPHQWWULSVZHUHWKHQGLVWULEXWHGDURXQGWKHVWUDWHJLFQHWZRUN7KLVZDVGRQH XVLQJDFRPELQDWLRQRI7UDQVSRUW$VVHVVPHQWRXWSXWFHQVXVMRXUQH\WRZRUNGDWDDQG JUDYLW\PRGHOV 

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 7KH(FRQRPLF&DVH 

 $PDWUL[FRPSULVLQJRIGHYHORSPHQWWULSVRQO\ZDVWKHQDVVLJQHGRQWRWKHQHWZRUN± HVVHQWLDOO\JLYLQJDQDOORUQRWKLQJDVVLJQPHQWGXHWRWKHDEVHQFHRIRWKHUWULSV7KH GHYHORSPHQWWULSVIURPWKLVZHUHWKHQDGGHGWRWKHEDVHPDWULFHVWRGHULYHDP DQG SP SHDN KRXU PDWULFHV 7KH  PDWULFHV ZHUH WKHUHIRUH UHSUHVHQWDWLYH RI 17(07HPSUR OHYHO JURZWK DFURVV 1RUWK 7\QHVLGH DV D ZKROH UDWKHU WKDQ 17(07HPSURJURZWKDSSOLHGWRWKHORFDOQHWZRUN   )RXUVFHQDULRVZHUHWKHQPRGHOOHGLQ6$7851 x :LWKRXWVFKHPH±DQG x :LWKVFKHPH±DQG   7KH ³ZLWK VFKHPH´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

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 7KH(FRQRPLF&DVH  $SSUDLVDORI:HE7$*&ULWHULD ,PSDFW $SSUDLVHG &RPPHQWV %XVLQHVVHVXVHUV WUDQVSRUWSURYLGHUV

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

(FRQRPLF$SSUDLVDO   7KH HFRQRPLF DSSUDLVDO KDVEHHQFDUULHGRXWIRUFKDQJHVLQ MRXUQH\ WLPHV DQG DFFLGHQWVRQO\DVWKHVHDUHE\IDUWKHPRVWVLJQLILFDQWIRUWKLVVFKHPH$VSUHDGVKHHW DSSURDFKZDVDGRSWHGDSSO\LQJ:HE7$*JXLGDQFHDQGYDOXHV ±HJYDOXHRIWLPH YDOXHRIDFFLGHQWVHWF   6FKHPHFRVWVZHUHEDVHGRQFXUUHQWHVWLPDWHVSURYLGHGE\WKHFRQVWUXFWLRQFRPSDQ\ (VKDQGFRQYHUWHGWR3UHVHQW9DOXHVWDNLQJLQWRDFFRXQWULVNDQGRSWLPLVPELDV$ VXPPDU\RIWKHDSSURDFKWDNHQIRUWKHYDULRXVHOHPHQWVRIWKHHFRQRPLFDSSUDLVDOLV JLYHQEHORZ  -RXUQH\7LPHV x 'HWHUPLQHZLWKDQGZLWKRXWVFKHPHIORZVIURP6$7851PRGHOV x ,QSXWIORZVLQWR9,66,0PRGHODQGRSWLPLVHVLJQDOV x 'HWHUPLQH IORZV DQG MRXUQH\ WLPHV IRU URXWHV ZKHUH MRXUQH\ WLPHV FKDQJH VLJQLILFDQWO\EHWZHHQWKHZLWKDQGZLWKRXWVFKHPHVFHQDULRV x 'HWHUPLQH FKDQJHV WR WRWDO YHKLFOHKRXUV DV D UHVXOW RI WKH VFKHPH LQ  DQG  x 'HWHUPLQHYHKLFOHKRXUVDYLQJVIRUHDFKDSSUDLVDO\HDU x $VVXPHOLQHDUJURZWKEHWZHHQILUVWPRGHOOHG\HDUDQGGHVLJQ\HDU   x $VVXPHQRJURZWKIURPWRILQDODSSUDLVDO\HDU x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

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

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

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

 7KHFXUUHQWQRLVHOHYHOVGRQRWPHWWKHUHOHYDQWQRLVHOHYHORIG% $ UHTXLUHGIRU WKHURDGLQVXODWLRQUHJXODWLRQVWREHDSSOLHGDVVKRZQLQWDEOHEHORZ  7DEOH6KRZLQJ1RLVH5HDGLQJVWDNHQRQWKHVW2FWREHUDW(TXLYDOHQW 3RVLWLRQWRUHSUHVHQWORFDWLRQ2QH0HWUHIURP5HVLGHQWLDOKRXVHV¶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

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

 2SWLRQV$SSUDLVHG

 7KHRSWLRQVDSSUDLVHGZHUHD'R0LQLPXPRSHQLQJ\HDU  DQGIXWXUH\HDU   DQG DOVR D 'R 6RPHWKLQJIRU WKH VDPH RSHQLQJ DQGIXWXUH \HDUV 7KH 'R 0LQLPXP RSWLRQ FORVHO\ UHSUHVHQWV WKH H[LVWLQJ URDG QHWZRUN ZLWK VRPH PLQRU DOWHUDWLRQV WR MXQFWLRQVZKHUHFRQJHVWLRQLQWKHIXWXUH\HDUFDXVHVVLJQLILFDQWGHOD\V   7KH EDFNJURXQG JURZWK DSSOLHG LQ WKH PRGHOOLQJ UHSUHVHQWHG 1RUWK 7\QHVLGH¶V HPHUJLQJ /RFDO 3ODQ DVSLUDWLRQV 7KHUHIRUH DQ\ PDMRU GHYHORSPHQW VLWHV WKDW ZRXOG OLNHO\ UHTXLUH RII VLWH KLJKZD\ LPSURYHPHQWV WR PLWLJDWH WKH LPSDFWV KDYH EHHQ LPSOHPHQWHGLQWKHRSWLRQWHVWLQJ$VLJQLILFDQWDOWHUDWLRQZDVPDGHWRWKH$1HZ

 $VVXPSWLRQVPDGHLQWKHVFKHPHDSSUDLVDODGGLWLRQDOWRWKRVHVHWRXWLQ:HE7$*DUH SUHVHQWHGEHORZ  x 7UDIILFJURZWKEHWZHHQWKHWZRPRGHOOHG\HDUV±DQG±ZLOOEHOLQHDU x 7KHUHZLOOEHQRWUDIILFJURZWKEH\RQG x &RQVWUXFWLRQ GHOD\ LPSDFWV DOWKRXJK QHJDWLYH ZLOO EH UHODWLYHO\ PLQRU GXH WR WKH DYDLODELOLW\RIGLYHUVLRQURXWHV x &KDQJHVLQPDLQWHQDQFHXVHUFRVWVDOWKRXJKSRVLWLYHZLOOEHUHODWLYHO\PLQRUGXH WRWKHDYDLODELOLW\RIGLYHUVLRQURXWHV

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

x -RXUQH\WLPHEHQHILWVGXHWRLPSURYHPHQWVGXULQJZHHNHQGVDQGRIISHDNKRXUVRQ ZHHNGD\VDOWKRXJKSRVLWLYHZLOOEHUHODWLYHO\PLQRU x 7KHDQQXDOLVDWLRQIDFWRUWRFRQYHUWSHDNSHULRGEHQHILWVWR$$'7EHQHILWVLV  6HQVLWLYLW\DQG5LVN3URILOH

 7KHHFRQRPLFDSSUDLVDOUHVXOWVIRUWKHFHQWUDOFDVH ±LHWKHEHVWHVWLPDWHRIWUDIILF JURZWKDQGRSHUDWLRQDOSHUIRUPDQFHRIWKHSURSRVHGVFKHPH±DUHSUHVHQWHGEHORZ $QRSWLPLVPELDVRIKDVEHHQDSSOLHGWRWKHVFKHPHFRVWV  7DEOH(FRQRPLF$SSUDLVDO2XWSXW±&HQWUDO&DVH 2XWSXW ¶V 3UHVHQW9DOXH&RVWV 39&   3UHVHQW9DOXH%HQHILWV 39%   1HW3UHVHQW9DOXH 139   %HQHILWWR&RVW5DWLR %&5     ,QRUGHUWRWHVWWKHUREXVWQHVVRIWKHHFRQRPLFDSSUDLVDODQXPEHURIVHQVLWLYLW\WHVWV KDYHEHHQFDUULHGDVGHVFULEHGEHORZ  /RZ7UDIILF*URZWK   7KH LPSDFW RI ORZ WUDIILF JURZWK RQ WKH HFRQRPLF DSSUDLVDO KDV EHHQ HVWLPDWHG DSSO\LQJ WKH DVVXPSWLRQV VHW RXW LQ 7$* 8QLW 0 ± )RUHFDVWLQJ DQG 8QFHUWDLQW\ $ VLQJOHIDFWRU ZDV DSSOLHG WRWUDIILFJURZWK ZLWK QR DGMXVWPHQWVPDGHWR DVVXPSWLRQV UHJDUGLQJ WKH GHYHORSPHQWV WKDW ZRXOG LPSDFW RQ WKH VFKHPH 7KHLPSDFWRQWKH HFRQRPLFDSSUDLVDOLVVXPPDULVHGLQWKHWDEOHEHORZ  7DEOH(FRQRPLF$SSUDLVDO2XWSXW±/RZ*URZWK 2XWSXW ¶V 3UHVHQW9DOXH&RVWV 39&   3UHVHQW9DOXH%HQHILWV 39%   1HW3UHVHQW9DOXH 139   %HQHILWWR&RVW5DWLR %&5    +LJK7UDIILF*URZWK   7KH LPSDFW RI KLJK WUDIILF JURZWK RQ WKH HFRQRPLF DSSUDLVDO KDV EHHQ HVWLPDWHG DSSO\LQJ WKH DVVXPSWLRQV VHW RXW LQ 7$* 8QLW 0 ± )RUHFDVWLQJ DQG 8QFHUWDLQW\ $ VLQJOHIDFWRU ZDV DSSOLHG WRWUDIILFJURZWK ZLWK QR DGMXVWPHQWVPDGHWR DVVXPSWLRQV UHJDUGLQJ WKH GHYHORSPHQWV WKDW ZRXOG LPSDFW RQ WKH VFKHPH 7KHLPSDFWRQWKH HFRQRPLFDSSUDLVDOLVVXPPDULVHGLQWKHWDEOHEHORZ 

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

7DEOH(FRQRPLF$SSUDLVDO2XWSXW±+LJK*URZWK 2XWSXW ¶V 3UHVHQW9DOXH&RVWV 39&   3UHVHQW9DOXH%HQHILWV 39%   1HW3UHVHQW9DOXH 139   %HQHILWWR&RVW5DWLR %&5     $IXUWKHUDSSUDLVDOKDVEHHQFDUULHGRXWWDNLQJLQWRDFFRXQWXQFHUWDLQW\UHJDUGLQJWKH VFKHPH FRVWV 7KH LPSDFW RI D VLJQLILFDQW LQFUHDVH LQ FRVWV KDV EHHQ DVVHVVHG DSSO\LQJ D  LQFUHDVH 7KLV KDV EHHQ FRPELQHG ZLWK WKH ORZ JURZWK DSSUDLVDO WR JLYH WKH ORZHVW SRWHQWLDO DSSUDLVDO UHVXOWV 7KH LPSDFW RQ WKH HFRQRPLF DSSUDLVDO LV VXPPDULVHGLQWKHWDEOHEHORZ  7DEOH(FRQRPLF$SSUDLVDO2XWSXW±/RZ*URZWKDQG,QFUHDVHG6FKHPH&RVWV 2XWSXW ¶V 3UHVHQW9DOXH&RVWV 39&   3UHVHQW9DOXH%HQHILWV 39%   1HW3UHVHQW9DOXH 139   %HQHILWWR&RVW5DWLR %&5     $QLQFUHDVHLQFRVWVRILVFRQVLGHUHGWREHUHODWLYHO\XQOLNHO\DVWKHFRUHFRDVW HVWLPDWH LQFOXGHV DSSURSULDWH XSOLIWV IRU RSWLPLVP ELDV DQG LGHQWLILHG ULVN 7KHUH LV VLJQLILFDQWO\PRUHXQFHUWDLQW\UHJDUGLQJWKHIRUHFDVWWUDIILFIORZVDVWKHFRUHVFHQDULR LQFOXGHV D VLJQLILFDQW DPRXQW RI GHYHORSPHQW WUDIILF ± DOWKRXJK WKLV KDV HIIHFWLYHO\ EHHQUHGXFHGLQWKHGHVLJQ\HDUWRWDNHDFFRXQWRIXQUHDOLVWLFFRQJHVWLRQLQWKH9LVVLP PRGHO$UHGXFWLRQRIWKHW\SHDVVXPHGLQWKHORZJURZWKDVVHVVPHQW DSSUR[LPDWHO\ LQWKHGHVLJQ\HDU LVFRQVLGHUHGWREHIHDVLEOH*LYHQWKHRXWSXWVVXPPDULVHG DERYHLWLVFRQVLGHUHGWKDWHFRQRPLFMXVWLILFDWLRQRIWKHVFKHPHLVUREXVWWDNLQJLQWR DFFRXQWSRWHQWLDOULVNV  9DOXHIRU0RQH\6WDWHPHQW

 7KH SURSRVHG VFKHPH SURYLGHV H[FHOOHQW YDOXH IRU PRQH\ ZLWK VLJQLILFDQW HFRQRPLF EHQHILWVFRPELQHGZLWKQRVLJQLILFDQWHQYLURQPHQWDORUVRFLDOGLVEHQHILWV7KHVFKHPH ZLOO GHOLYHU VXEVWDQWLDO VDYLQJV LQ WUDYHO WLPH ZKLOVW HQDEOLQJVLJQLILFDQWWUDIILFJURZWK DVVRFLDWHGZLWK/RFDO3ODQGHYHORSPHQWV   7KH RXWSXW IURP WKH HFRQRPLF DSSUDLVDO FHQWUDO HVWLPDWH LV VXPPDULVHG EHORZ LQ ¶V   3UHVHQW9DOXHRI&RVWV   3UHVHQW9DOXHRI%HQHILWV   %HQHILWWR&RVW5DWLR  

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

 7KHHFRQRPLFDSSUDLVDOKDVLQFOXGHGMRXUQH\WLPHVDYLQJVDQGWKHFDSLWDOFRVWRIWKH SURSRVHGVFKHPH±LQFOXGLQJDQDOORZDQFHIRUULVN1RQPRQHWLVHGLPSDFWVKDYHEHHQ TXDOLWDWLYHO\ DVVHVVHG RQO\ DV LW LV XQOLNHO\ WKDW WKH VFKHPH ZLOO KDYH D VLJQLILFDQW LPSDFWRQWKHVHFULWHULD   7KHULVNVVHQVLWLYLWLHVDQGXQFHUWDLQWLHVDUHVXPPDULVHGEHORZ  x /DFNRISROLWLFDOVXSSRUWOHDGVWRGHOD\VDQGSRWHQWLDOFDQFHOODWLRQ x $GGLWLRQDOXWLOLWLHVGLVFRYHUHGUHTXLULQJDGGLWLRQDOGLYHUVLRQGHVLJQ x 7KLUGSDUW\ODQGRZQHUVKLSLVVXHVGLVFRYHUHG x &RVWHVWLPDWHVLQFUHDVHEHWZHHQGHVLJQDQGFRQWUDFWRUGHWDLOHGHVWLPDWHV x 7RSRDQG38VXUYH\VDUHLQDFFXUDWHUHVXOWLQJLQUHGHVLJQZRUN x (QYLURQPHQWDOVXUYH\VLQGLFDWHXQIRUHVHHQGHVLJQFRQVWUDLQWV x 2EMHFWLRQVIURPVWDWXWRU\FRQVXOWHHVFDXVHGHOD\VDQGFRVWLQFUHDVHV x &RRUGLQDWLRQZLWKRWKHUVFKHPHOHDGVWRGHOD\VLQFUHDVHGFRVWV x /DFNRIVWDIIUHVRXUFHVZLWKUHTXLUHGVNLOOV x +HDOWKDQGVDIHW\LQFLGHQWVOHDGWRFODLPV x *URXQGFRQGLWLRQVQRWIXOO\LQYHVWLJDWHGUHVXOWLQJLQFRQVWUXFWLRQFRVWLQFUHDVHV    7KH VFKHPH LV FRQVLGHUHG WR SURYLGH YHU\ KLJK YDOXH IRU PRQH\ DV LQ WKH FHQWUDO VFHQDULR WKH %&5 LV JUHDWHU WKDQ    DQG WKHUH DUH QR VLJQLILFDQW DGYHUVH HQYLURQPHQWDOLPSDFWV   $OWKRXJK QR IRUPDO LPSDFW RI GLVWULEXWLRQDO LPSDFWV KDV EHHQ FDUULHG RXW LW LV FRQVLGHUHGWKDWWKHVHZLOOEHQHJOLJLEOH   $SSUDLVDO6XPPDU\7DEOH



 $SSUDLVDO6XPPDU\7DEOH 'DWHSURGXFHG    &RQWDFW

1DPHRIVFKHPH $FFHVVWR$ &REDOW%XVLQHVV3DUN 1DPH $QG\)O\QQ 'HVFULSWLRQRIVFKHPH $FFHVVWR$ &REDOW%XVLQHVV3DUN LVDKLJKZD\FDSDFLW\VFKHPHDLPHGDWUHGXFLQJH[LVWLQJDQGIRUHFDVWFRQJHVWLRQWRWKH1RUWK:HVWDFFHVVWR&REDOW%XVLQHVV3DUN7KLVVFKHPHGHOLYHUVLPSURYHGFDSDFLW\WKURXJKLPSURYHGMXQFWLRQ 2UJDQLVDWLRQ 1RUWK7\QHVLGH&RXQFLO DUUDQJHPHQWVDQGDGGLWLRQDOWUDIILFODQHVLQFOXGLQJ$$+RO\VWRQH,QWHUFKDQJH$1HZ

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

/DQGVFDSH 7KHVFKHPHLQFOXGHVZLGHQLQJRIWKH$1HZ

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

-RXUQH\TXDOLW\ 1RWVLJQLILFDQW 1HXWUDO $FFLGHQWV 7KHUHDUHQRFROOLVLRQEODFNVSRWVDORQJWKHFRUULGRUWKDWWKHVFKHPHVHHNVWRDGGUHVVDQGDVVXFKWKHVFKHPHLPSDFWRQDFFLGHQWVLVFRQVLGHUHGQHXWUDO 1$ 1HXWUDO 

6HFXULW\ 8QFKDQJHG 1HXWUDO 1$ $FFHVVWRVHUYLFHV 8QFKDQJHG 1HXWUDO 1$ $IIRUGDELOLW\ 8QFKDQJHG 1HXWUDO 1$ 6HYHUDQFH 6RPHVHYHUDQFHLVVXHVDUHEHLQJUHVROYHGDVDSDUWRIWKHVFKHPHIRUSHGHVWULDQVDQGF\FOLVWV7KHVHLQFOXGH‡3URYLVLRQ 1$ RIDPZLGHVKDUHGVXUIDFHRQWKH$IURPWKH6LOYHUOLQN1RUWK5RXQGDERXWWRWKH+RO\VWRQH5RXQGDERXW ‡&RQYHUVLRQRIH[LVWLQJSHOLFDQFURVVLQJVRQWKH$WRWRXFDQFURVVLQJV7KH ‡$GGLWLRQDO7RXFDQFURVVLQJVRYHUWKHFLUFXODWRU\FDUULDJHZD\RIWKH+RO\VWRQHURXQGDERXWDQG$VRXWKERXQGRIIVOLSDQGDQHZPZLGHVKDUHGVXUIDFHWRSURYLGHDOLQNWRWKH$ ‡$GGLWLRQDO7RXFDQFURVVLQJVRYHUWKHFLUFXODWRU\FDUULDJHZD\RIWKH+RO\VWRQHURXQGDERXWDQG$QRUWKERXQGRIIVOLSDQGDQHZPZLGHVKDUHGVXUIDFHWRSURYLGHDOLQNWRWKH+RO\VWRQH %\SDVVDQGWKHSURSRVHG6FDIIROG+LOOGHYHORSPHQW ‡,PSURYHPHQWDQGZLGHQLQJRIH[LVWLQJVKDUHGVXUIDFHVDQGWRXFDQFURVVLQJVDWWKH+RO\VWRQH5RXQGDERXW7KHVHPHDVXUHVZLOODGGWRWKHFRPSOHPHQWDU\F\FOHLPSURYHPHQWVFKHPH EHLQJGHYHORSHGWRDFFHVVWKH&REDOW%XVLQHVV3DUN 1RWTXDQWLILHG 6OLJKW%HQHILWV

2SWLRQDQGQRQXVHYDOXHV 1HXWUDO &RVWWR%URDG7UDQVSRUW )LQDQFHLVWKURXJKDFRPELQDWLRQRIFHQWUDOJRYHUQPHQWJUDQWDQG/RFDO$XWKRULW\FRQWULEXWLRQ &RVWRIWKHVFKHPHLVHVWLPDWHGDW PLQSULFHV %XGJHW 1$  FRQVWUXFWLRQULVNRSWLPLVPELDVSUHSDUDWLRQDQGVXSHUYLVLRQ 3XEOLF

$FFRXQWV ,QGLUHFW7D[5HYHQXHV 1RWDVVHVVHGEXWOLNHO\WREHUHODWLYHO\PLQRUDVWKHVFKHPHGRHVQRWFKDQJHWKHWRWDOYROXPHRIWUDIILFRUWKHYHKLFOHNPVWUDYHOOHG 1RWTXDQWLILHG 1HXWUDO 1$ $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

 7KH0DQDJHPHQW&DVH

 ,QWURGXFWLRQ

 7KH0DQDJHPHQWFDVHZLOOVHHNWRGHPRQVWUDWHWKDWWKHSURMHFWLVGHOLYHUDEOHZLWKLQ WKHIXQGLQJWLPHIUDPHDQGKRZZHZLOOVHHNWRHQVXUHWKHUHTXLUHGTXDOLW\LVDFKLHYHG .H\ WR WKLV LV GHPRQVWUDWLQJ HIIHFWLYH SURMHFW PDQDJHPHQW DQG SURMHFW SODQQLQJ WKURXJKRXWWKHOLIHRIWKHSURMHFW   0RUH VSHFLILFDOO\ WKH 0DQDJHPHQW FDVH ZLOO SURYLGH DSSURSULDWH DQG SURSRUWLRQDWH HYLGHQFHRI  x ([DPSOHV RI WKH GHOLYHU\ RI VLPLODU SURMHFW E\ 1RUWK 7\QHVLGH FRXQFLO DQG LWV GHOLYHU\ SDUWQHUVWRGHPRQVWUDWHZHFDQGHOLYHU x 7KH RXWOLQH SURJUDPPH WDNLQJ WKH VFKHPH WKURXJK WKH IXOO EXVLQHVV FDVH DQG FRQVWUXFWLRQWRGHPRQVWUDWHHIIHFWLYHIRUZDUGSODQQLQJ x 'HWDLOVRIWKHJRYHUQDQFHVWUXFWXUHIRUGHOLYHULQJWKHVFKHPHLQFOXGLQJWKHSURMHFWWHDP VWUXFWXUH 'HWDLOV RI WKH NH\ UROHV DQG WKHLU UHVSRQVLELOLWLHV DUH DOVR SURYLGHG 7KLV ZLOO GHPRQVWUDWH WKDW ZH KDYH WKH VWUXFWXUH LQ SODFH ZLWK WKH ULJKW SHRSOH WR VXFFHVVIXOO\ GHOLYHUWKHVFKHPH x $QRXWOLQHRIWKH$VVXUDQFHV DSSURYDOVSODQLQSODFH x 2XU DSSURDFK WR 6WDNHKROGHU (QJDJHPHQW 7R GHPRQVWUDWH WKDW DOO VWDNHKROGHUV DUH EHLQJIXOO\FRQVLGHUHGWKURXJKWKHGHVLJQDQGFRQVWUXFWLRQVWDJHV x 2XUSURSRVHGSURMHFWUHSRUWLQJSURFHVV x 2XUULVNPDQDJHPHQWVWUDWHJ\ x 2XUVWUDWHJ\IRUVFKHPHPRQLWRULQJDQGHYDOXDWLRQ x 2XUDSSURDFKWRSURMHFWPDQDJHPHQW   (YLGHQFHRIVLPLODUSURMHFWV

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

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

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x 'XUKDP*DWH x $,PSURYHPHQWV x 3HQQLQH5HDFK   2XWOLQH3URJUDPPH

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

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

 *RYHUQDQFHRUJDQLVDWLRQVWUXFWXUH UROH

 7KH&RXQFLOKDVD7HFKQLFDO3DUWQHUVKLSLQSODFHZLWK&DSLWD7KHIXOOEXVLQHVVFDVH ZLOOEHSUHSDUHGE\WKH7HFKQLFDO3DUWQHUDQGVLJQHGRIIRQEHKDOIRIWKH&RXQFLO   7KH RUJDQRJUDP SURYLGHG ZLWKLQ ILJXUH  EHORZ VHWV RXW RXU WHDP VWUXFWXUH IRU GHOLYHULQJWKHVFKHPH  

 )LJXUH3URSRVHG6FKHPH2UJDQRJUDP 6WDJH%XVLQHVVFDVH    .H\5ROHV  1RUWK7\QHVLGH&RXQFLO   1RUWK 7\QHVLGH DV WKH VFKHPH SURPRWHU ZLOO IXOILO D QXPEHU RI NH\ UROHV DV OLVWHG EHORZ  x 5HSRUWLQJWRWKH1(/7%DQG1(/(3 x (QVXULQJVWUDWHJLFULVNVDUHHIIHFWLYHO\PDQDJHG x 2YHUDOOILQDQFLDOPDQDJHPHQWRIWKHVFKHPH x 2YHUDOOSURJUDPPHPDQDJHPHQWRIWKHVFKHPH x 2YHUDOORZQHUVKLSIRUPDQDJLQJVWDNHKROGHUV 

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

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¶H[SHULHQFHRIPDQDJLQJPDMRUKLJKZD\ SURMHFWVIRUORFDODXWKRULWLHVDQGWKH+LJKZD\V$JHQF\   :DUUHQZLOOXVH063URMHFWVRIWZDUHWRSODQWKHGHWDLOHGGHVLJQGHOLYHU\DQGPRQLWRU FRQWURODQGUHSRUWRXUSURJUHVVDJDLQVWSODQ7KLVSURJUDPPHLQIRUPDWLRQZLOOWKHQEH LQFRUSRUDWHGLQWRRXUPRQWKO\µ+LJKOLJKW¶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

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

 $VVXUDQFHV DSSURYDOVSODQ

 7KHSURJUDPPHRIORFDOWUDQVSRUWPDMRUVFKHPHVZKLFKLQFOXGHVWKLVVFKHPHIRUPV SDUWRIWKH&RXQFLO¶VDSSURYHG,QYHVWPHQW3ODQ   $V SDUW RI WKH LQWHUQDO DSSURYDOV SURFHVV GHWDLOV RI WKH VFKHPH ZHUH SUHVHQWHG WR 1RUWK7\QHVLGH&RXQFLO¶V6HQLRU/HDGHUVKLS7HDP VHQLRURIILFHUJURXS LQ1RYHPEHU  DQG DW WKH &RXQFLO¶V /HDG 0HPEHU %ULHILQJ LQ -DQXDU\  )XUWKHU XSGDWHV KDYHEHHQSURYLGHGWRWKHOHDGFDELQHWPHPEHUIRU7UDQVSRUW&OOU-RKQ+DUULVRQDV SDUWRI17&¶VPRQWKO\EULHILQJVHVVLRQV   6WDNHKROGHU(QJDJHPHQW6WUDWHJ\

 7KH 6WDNHKROGHU (QJDJHPHQW 6WUDWHJ\ LV VXPPDULVHG ZLWKLQ WKH 6WUDWHJLF &DVH VHFWLRQ RI WKH EXVLQHVV FDVH ZKHUH WKH NH\ VWDNHKROGHU FRQVLGHUDWLRQV NH\ VWDNHKROGHUV DQG 6WDNHKROGHU &RQIOLFWV DUH GLVFXVVHG 7KH IXOO 6WDNHKROGHU (QJDJHPHQW6WUDWHJ\LVSURYLGHGZLWKLQ$SSHQGL[&   5LVNPDQDJHPHQWVWUDWHJ\

 7KLV VHFWLRQ RI WKH 0DQDJHPHQW &DVH FRYHUV WKH ULVN PDQDJHPHQW SURFHVV IRU WKH SURMHFW)RUWKHSXUSRVHVRIWKHULVNPDQDJHPHQWVWUDWHJ\DULVN LV GHILQHG DV DQ HYHQWWKDWSRVHVDVLJQLILFDQWWKUHDWRURSSRUWXQLW\WRWKHGHOLYHU\WKHSURMHFWLQWHUPV RIFRVWDQGRUWRDOHVVHUH[WHQWWLPH   :HKDYHDGRSWHGDV\VWHPDWLFDSSURDFKWRULVNPDQDJHPHQWWRXQGHUVWDQGHYDOXDWH WKHLUVFDOHDQGOLNHOLKRRGDQGSXWDVWUDWHJ\LQSODFHWRPDQDJHWKHULVNVWKURXJKWKH GHVLJQ FRQVWUXFWLRQ DQG SRVW LPSOHPHQWDWLRQ VWDJHV $GRSWLQJ WKLV SURFHVV ZLOO KHOS XVWRDFKLHYHWKHRYHUDOOVFKHPHREMHFWLYHV   :HZLOOXVHD52$' 5LVNDQG2SSRUWXQLW\DW'HVLJQ SURFHVVWRXQGHUWDNHDGHVLJQ UHYLHZRIDOOULVNVDQGRSSRUWXQLWLHV7KLVSURFHVVUXQVLQFRQMXQFWLRQZLWKWKH'HVLJQ ([FHOOHQFH (YDOXDWLRQ 3URFHVV '((3  DQG FDSWXUHVULVNV LGHQWLILHG E\WKLV SURFHVV 5LVN PDQDJHPHQW LV D FRQWLQXRXV SURFHVV DQG EHJLQV ZLWK ULVN LGHQWLILFDWLRQ 7KH 52$'DVVHVVPHQWLQWKHFRQFHSWSKDVHRIDSURMHFWW\SLFDOO\KLJKOLJKWVWKHJOREDOELJ SLFWXUHRUPDFURULVNDQGRSSRUWXQLWLHVRIDSURMHFW5LVNDQG2SSRUWXQLW\DVVHVVPHQWV PXVW EH FDUULHG RXW WKURXJKRXW WKH OLIH RI WKH SURMHFW DV HDFKDUHDRIWKHSURMHFWLV GHILQHG 

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

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

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

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x 5LVN,GHQWLILFDWLRQ  x 5LVN$VVHVVPHQW  x 5LVN2ZQHUVKLS

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

 x 5LVN4XDQWLILFDWLRQ  x 5LVN0DQDJHPHQW  x 5LVN0RQLWRULQJ  5LVN:RUNVKRS   ,QDGYDQFHRIXQGHUWDNLQJWKHULVNZRUNVKRSDSUHVHVVLRQZDVXQGHUWDNHQZLWK17& SURMHFWRIILFHUVDQGFRQVXOWDQWVWRSUHSDUHDQDWWHQGDQFHOLVWIRUWKHZRUNVKRS&DSLWD FXUUHQWO\ SHUIRUP WKH IXQFWLRQ RI GHVLJQ DQG FRQVWUXFWLRQ SDUWQHU WR 1RUWK 7\QHVLGH &RXQFLODVZHOODVSURYLGHFRUHKLJKZD\VIXQFWLRQVVXFKDV'HYHORSPHQW&RQWURODQG 1HWZRUN0DQDJHPHQW   ,QRUGHUWRHQVXUHWKDWWKHIXOOUDQJHRISURMHFWULVNVZDVLQGHQWLILHGWKHIROORZLQJOLVWRI DWWHQGHHVZHUHLQYLWHGWRSDUWLFLSDWHLQWKHULVNZRUNVKRS   2QWKHWKRI6HSWHPEHUDULVNZRUNVKRSZDVXQGHUWDNHQ7KHDLPRIWKHULVN ZRUNVKRSZDVWRSUHSDUHDULVNUHJLVWHUDQGULVNDVVHVVPHQWIRUWKHSURMHFW7KHULVN ZRUNVKRSDWWHQGHHVDQGWKHLUUROHDUHSURYLGHGZLWKLQWDEOHEHORZ  7DEOH5LVN:RUNVKRS$WWHQGHHVDQGWKHLUUROH 6HUYLFH$UHD 1DPH 5ROH 3ODQQLQJ)HDVLELOLW\ $QGUHZ)O\QQ 17&2IILFHUUHVSRQVLEOH IRUWKHGHOLYHU\RIVFKHPH IHDVLELOLW\ SUHSDUDWLRQRI WKH)%& ,DQ5REHUWV &DSLWD3URMHFW'LUHFWRUIRU WKHVFKHPHIHDVLELOLW\  SUHSDUDWLRQRIWKH)%& 6WXDUW&ODUNH &DSLWD3URMHFW0DQDJHU IRUWKHVFKHPHIHDVLELOLW\ SUHSDUDWLRQRIWKH)%& 1LFKRODV%U\DQ &DSLWDWHFKQLFDOOHDGIRU WKHVFKHPHIHDVLELOLW\  SUHSDUDWLRQRIWKH)%& 'HVLJQ 'DYLG:DOO &DSLWD'HVLJQ0DQDJHU DQG3URMHFW'LUHFWRUIRU WKH'HWDLOHG'HVLJQVWDJH

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

'HVLJQ/HDG .HYLQ5LGSDWK 17&1HWZRUN0DQDJHU 0DUN1HZODQGV 17&2IILFHUUHVSRQVLEOH IRUWKHGHWDLOHGGHVLJQ DQGFRQVWUXFWLRQVWDJHV 0DUF'REVRQ &DSLWD46DQGFRQWUDFW PDQDJHU &RQVWUXFWLRQ $QWKRQ\+HZLWW &DSLWD6HQLRU30IRUWKH &RQVWUXFWLRQ6WDJH -RKQ6DXQGHUV 'HVLJQ0DQDJHUIRU(6+ JURXS &DSLWDFRQVWUXFWLRQ SDUWQHUV  9LQFH&RXUWQH\ 6HQLRU4$IRU(6+JURXS  5LVN:RUNVKRS±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³+HDW0DS´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

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

)LJXUH+HDW0DSXVHGIRUWKHULVNVFRULQJH[HUFLVH

+($70$3 $OPRVW       &HUWDLQ

3UREDEOH      

3RVVLEOH      

8QOLNHO\      

5HPRWH      

      

  ,QVLJQLILFDQW 0LQRU 0RGHUDWH 0DMRU &DWDVWURSKLF

          /RZ     0HGLXP        +LJK     4XDQWLILHG5LVN$VVHVVPHQW±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

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

 7KH5LVN5HJLVWHULVDOLYHGRFXPHQWDQGKDVEHHQLVVXEMHFWWRRQJRLQJUHYLHZZLWK HDFK ULVNUHFRQVLGHUHGDQG WKRVHWKDW KDYH QRW RFFXUUHG UHPRYHGIURP WKHUHJLVWHU 7KLV SURFHVV ZLOO FRQWLQXH WKURXJK WKH FRQVWUXFWLRQ SHULRG XQWLO VFKHPH FRPSOHWLRQ 5LVNVKDYHEHHQDOORFDWHGWRWKHFOLHQWFRQWUDFWRULQOLQHZLWK1(&FRQWUDFWJXLGDQFH RQFRPSHQVDWLRQHYHQWV   0RQLWRULQJ (YDOXDWLRQ

 :H KDYH GHYHORSHG D UREXVW PRQLWRULQJ DQG HYDOXDWLRQ VWUDWHJ\ ZKLFK LV DOLJQHG WR DQG LQ DFFRUGDQFH ZLWK 7KH 'I7 0RQLWRULQJ DQG (YDOXDWLRQ )UDPHZRUN IRU /RFDO $XWKRULW\ 0DMRU 6FKHPHV 'XH WR WKH VL]H DQG FRPSOH[LW\ RI WKH VFKHPH ZH KDYH EDVHG RXU VWUDWHJ\ RQ WKH ³VWDQGDUG´ PRQLWRULQJ DQG HYDOXDWLRQ UHTXLUHPHQWV 7KH 0RQLWRULQJDQG(YDOXDWLRQ6WUDWHJ\GHYHORSHGLVSURYLGHGZLWKLQ$SSHQGL['   3URMHFWPDQDJHPHQWRSWLRQV

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‡ 3ODQQLQJFRQWURODQGEHQHILWVPDQDJHPHQW ‡ 6WDQGDUGVLQFOXGLQJTXDOLW\ULVNLVVXHVDQGEXVLQHVVFDVHFKDQJHPDQDJHPHQW ‡ 3URJUDPPHPDQDJHPHQWVXSSRUW 

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

 7RZDUGV HQVXULQJ D FRQWUROOHG DQG FRRUGLQDWHG DSSURDFK WR VHUYLFH GHOLYHU\ DQG DFKLHYHPHQWRINH\GDWHVZHZLOODSSO\WKHSURMHFWPDQDJHPHQWSULQFLSOHVSURPRWHG E\ 35,1&( 7KHVH SULQFLSOHV DUH HPEHGGHG LQ RXU ,62 DFFUHGLWHG %XVLQHVV 0DQDJHPHQW6\VWHP  3URJUDPPH5HSRUWLQJ   7KHPDLQSURJUHVVUHSRUWLQJPHFKDQLVPZLOOEHWKH+LJKOLJKW5HSRUW7KHIUHTXHQF\RI WKHUHSRUWLQJLVVXEMHFWWRDJUHHPHQWZLWK1RUWK7\QHVLGHEXWDVDPLQLPXPZRXOGEH SURYLGHGLQDGYDQFHRIHDFKUHOHYDQW3URMHFWRU3URJUDPPH%RDUG7KHUHSRUWZLOO W\SLFDOO\FRQWDLQ ‡ 5HG$PEHU*UHHQVWDWXVE\ZRUNVWUHDP ‡ 3URJUHVVDJDLQVWNH\0LOHVWRQHVDQGTXDOLW\JDWHV ‡ .H\DFKLHYHPHQWVDQGSURJUHVVVLQFHODVWUHSRUW ‡ ([FHSWLRQVIURPWKHSODQ ‡ .H\ULVNVDQGLVVXHVZLWKFXUUHQWDQGRUSURSRVHGPLWLJDWLQJDFWLRQV ‡ .H\HYHQWVGXHQH[WSHULRG ‡ 'HSHQGHQF\DQDO\VLVDQGUHYLHZ   &DSLWDZLOOFROODWHDQGPHUJHSURMHFWUHSRUWVLQWRDSURJUDPPHKLJKOLJKWUHSRUW7KLV ZLOOEHSURGXFHGPRQWKO\DQGDJUHHGE\WKH3URJUDPPH0DQDJHU0DMRUGHYLDWLRQV IURP SODQV QHZ LVVXHV DQG FKDQJH UHTXHVWV ZLOO EH WKH VXEMHFW RI D VHSDUDWH H[FHSWLRQUHSRUWDFFRPSDQ\LQJWKH+LJKOLJKWUHSRUWFUHDWHGE\WKHSURMHFWPDQDJHU  3URJUHVV5HSRUWLQJ   $VSDUWRIWKHRYHUDOOSURJUDPPHUHSRUWLQJDFRPSUHKHQVLYHPRQWKO\SURJUHVVUHSRUW ZLOOEHSUHSDUHGE\&DSLWDDQGVXEPLWWHGWR1RUWK7\QHVLGHLQDQDJUHHGIRUPDW7KH UHSRUWZLOOFRQWDLQ ‡ $VXPPDU\VWDWHPHQWRQWKHSURJUDPPHDQGGHOLYHULHVKLJKOLJKWLQJSUREOHPDUHDV DQGUHPHGLDODFWLRQVUHTXLUHGDFKLHYHPHQWVPDGHGXULQJWKHPRQWKZLOOEHLWHPLVHG DQGFRPSDUHGWRSODQ ‡ $VWDWHPHQWRQWKHVWDWXVRISURFXUHPHQWDQGVXEFRQWUDFWDZDUGVWRJHWKHUZLWKWKH SODQQHGDZDUGGDWHVDQGDQ\GHYLDWLRQVWRWKHVHGDWHV ‡ $+HDOWKDQG6DIHW\UHSRUW ‡ 0LOHVWRQH3URJUHVV ‡ &KDQJH&RQWURODQDO\VLV ‡ 5HVRXUFH+LVWRJUDPVDVUHTXLUHG ‡ .H\5LVNVDQG,VVXHV  0RQWKO\&RVW5HSRUWLQJ 

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

 $ FRPSUHKHQVLYH PRQWKO\ FRVW UHSRUW ZLOO EH SUHSDUHG DQGVXEPLWWHGWRWKH&DSLWD 3URJUDPPH 'LUHFWRU DQG DV UHTXLUHG WKH &/,(17 3URJUDPPH /HDG LQ DQ DJUHHG IRUPDW7KLVUHSRUWZLOOFRQWDLQ ‡ ,QLWLDOFRQWUROIRUHFDVW ‡ &XUUHQWFRQWUROIRUHFDVW ‡ &RPPLWPHQWVWKLVSHULRG ‡ &RPPLWPHQWVWRGDWH ‡ ([SHQGLWXUHWRGDWHFRPSDUHGWRSODQQHG ‡ )RUHFDVWDW&RPSOHWLRQDQGYDULDQFHIURP&XUUHQW%XGJHW  ([FHSWLRQ5HSRUWLQJDQG(VFDODWLRQ   ([FHSWLRQUHSRUWLQJDQGLVVXHHVFDODWLRQIDFLOLWDWHGE\WKHSURMHFWPDQDJHUDQG302 ZLOO EH FRQGXFWHG WKURXJK WKH 3URJUDPPH *RYHUQDQFH SURFHVV WR DOORZ HIIHFWLYH FRPPXQLFDWLRQRIWKHSURJUDPPHULVNVDQGLVVXHV7KHLQIRUPDWLRQIRUDQH[FHSWLRQ UHSRUWLVGHULYHGIURP ‡ &XUUHQW6WDJH3ODQ ‡ ,VVXHV/RJ ‡ 5LVNV/RJ ‡ &KHFNSRLQWVPLOHVWRQHVDQG4XDOLW\*DWHV ‡ $GYLFHRQH[WHUQDOHYHQWVWKDWDIIHFWWKH3URJUDPPH  $QH[FHSWLRQUHSRUWZLOOFRQWDLQ ‡ $ GHVFULSWLRQ RI WKH GHYLDWLRQ WRJHWKHU ZLWK WKH FDXVH RI WKH GHYLDWLRQ IURP WKH 6WDJH3ODQ ‡ &RQVHTXHQFHVRIWKHGHYLDWLRQ ‡ 7KHDYDLODEOHUHVROXWLRQRSWLRQV ‡ 7KHHIIHFWRIHDFKRSWLRQRQ7KH3,'5LVNV3URJUDPPHDQG6WDJHWROHUDQFHV7KH 3URJUDPPH0DQDJHU VUHFRPPHQGDWLRQV   4XDOLW\PDQDJHPHQW

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

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

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‡ 'DWH ‡ 'HWDLOVRILQVWUXFWLRQRUUHTXHVW ‡ 1DPHRISHUVRQRUJDQLVDWLRQ ‡ $FWLRQWREHWDNHQ ‡ :KRWRRNWKHDFWLRQ ‡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he following controls will apply: 3URGXFWV 5HTXLUHPHQW 5HYLHZHUV $SSURYHUV Deliverables $OO'HOLYHUDEOHVZLOOEHFKHFNHGDQG $XWKRU¶VSHHUGLVFLSOLQH 3URMHFW'LUHFWRU RU DSSURYHGEHIRUHLVVXH OHDGRUVXLWDEOH DVHQLRUPDQDJHULQ SURIHVVLRQDORIVDPH WKHLUDEVHQFH  GLVFLSOLQHWHFKQLFDODQG TXDOLW\SHHUUHYLHZHU Reports and $OOGUDZLQJVDQGUHSRUWVLVVXHGWR $XWKRU¶VSHHUGLVFLSOLQH 3URMHFW0DQDJHU RU Drawings H[WHUQDOSDUWLHV H[FHSWWKRVHFOHDUO\ OHDGGHVLJQPDQDJHURU 3URMHFW'LUHFWRULQ PDUNHG'5$)7 ZLOOLQFOXGHDGDWHG VXLWDEOHSURIHVVLRQDORI WKHLUDEVHQFH  ¶FKHFNER[¶LGHQWLI\LQJWKHDXWKRUWKH VDPHGLVFLSOLQH FKHFNHUDQGWKHDSSURYHU

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

Work of Sub- 6XEFRQVXOWDQWWREHUHVSRQVLEOHIRU µ2YHUYLHZFKHFN¶E\3URMHFW 3URMHFW0DQDJHU RU consultants FRUUHFWQHVVRIWKHLURZQZRUNEXWWKHLU 0DQDJHURU'HVLJQ 3URMHFW'LUHFWRULQ GHOLYHUDEOHVWREHUHYLHZHGJHQHUDOILW PDQDJHUDQGZKHUH WKHLUDEVHQFH  DQGFRPSOLDQFHZLWKEULHI QHFHVVDU\VXLWDEOH SURIHVVLRQDORIVDPH GLVFLSOLQH Design &RPSO\ZLWKUHOHYDQWSXEOLVKHGGHVLJQ 6LPSOH'HVLJQV6HOIFKHFN ([SHULHQFHG Calculations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inutes and ,VVXHGIRU,QIRUPDWLRQDVUHFRUGRI 6HOIFKHFNE\SURGXFHURUDQRWKHURIUHOHYDQW Notes PHHWLQJVFRQYHUVDWLRQV%RWKSDUWLHVRI GLVFLSOLQH WKHPHHWLQJWRFRQILUPDFFXUDF\RI PLQXWHV Sketches ,QWHQGHGIRULQIRUPDWLRQRQO\LQWKH 6HOIFKHFNE\SURGXFHURUDQRWKHURIUHOHYDQW GHYHORSPHQWRIWKHGHVLJQQRWWREH GLVFLSOLQH XVHGIRUDQ\RWKHUSXUSRVHV  4XDOLW\5HYLHZV 

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

 0RQWKO\3URMHFW+HDOWK&KHFN5HYLHZVDUHUHTXLUHGRQDPRQWKO\EDVLV7KH3URMHFW 0DQDJHULGHQWLILHVWKHOHYHORIULVNDVVRFLDWHGZLWKYDULRXVHOHPHQWVRIWKHSURMHFWVXFK DV IHH DUUDQJHPHQWV UHVRXUFHV DQG FKDQJH FRQWURO $Q RYHUDOO ULVN UDWLQJ LV WKHQ FDOFXODWHG IRU WKH SURMHFW $Q\ KLJKOLJKWHG ULVNV FDQ WKHQ EH FRQWUROOHG XVLQJ SUHYHQWDWLYHDFWLRQV   3URMHFW 5HYLHZV±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¶V 4XDOLW\ 6\VWHPDUHFDUULHGRXWDQGFRUUHFWLYHDFWLRQVDUHLPSOHPHQWHG7KH\ZLOOWKHQUHSRUWWR WKH 'HVLJQ 3URMHFW 0DQDJHU $ VFKHPDWLF VKRZLQJ WKH DXGLW DQG UHYLHZ SURFHVV LV VKRZQEHORZ  ,QWHUQDO,QSXWV 4XDOLW\ &RQWUDFW/LVWV 0DQDJHPHQW &RPSDQ\6\VWHPV 6\VWHP %XVLQHVV3URFHVVHV IRUDXGLW 4XDOLW\3URFHGXUHV 6HUYLFH2XWSXWV ([WHUQDO,QSXWV 5HTXHVWVWR 'HWHUPLQH FRQGXFWH[WHUQDO $XGLW DXGLW 0DQDJHPHQW 6FKHGXOH 5HYLHZ 3ODQ$XGLWV

5HSRUW$XGLW 8QGHUWDNH 5HVXOWV $XGLWV

5DLVH&RUUHFWLYH $FWLRQ5HTXHVWV 

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

 5ROHVDQGUHVSRQVLELOLWLHV

*HQHUDO5ROHV   3URGXFHU V 7KHSHUVRQRUJURXSUHVSRQVLEOHIRUGHYHORSLQJDSURGXFW7KHSURGXFHU ZLOOFKHFNWKHLUZRUNSULRUWRVXEPLVVLRQIRUUHYLHZ7KHPDMRULW\RIWKHGHWDLOHGGHVLJQ ZRUNZLOOEHFDUULHGRXWE\&DSLWD¶VPXOWLGLVFLSOLQDU\RIILFHV LQ 1RUWK 7\QHVLGH ZLWK VSHFLDOLVP¶VEHLQJSURYLGHGIURP&DUOLVOH   5HYLHZHU V  $ SHUVRQ RU JURXS LQGHSHQGHQW RI WKH SURGXFHUZKRDVVHVVZKHWKHUD SURGXFWPHHWVLWVUHTXLUHPHQWVDVGHILQHGLQLWV'HVLJQ%DVLV6WDWHPHQW   $SSURYHU V  7KH SHUVRQ RU JURXS ZKR LV LGHQWLILHG DV TXDOLILHG DQG DXWKRULVHG WR DSSURYHDSURGXFWDVEHLQJFRPSOHWHDQGLVVXHGIRUXVH   6SHFLILF5ROHVIRU4XDOLW\0DQDJHPHQW

 3URMHFW 0DQDJHU7KH 'HVLJQ 3URMHFW 0DQDJHUUHSRUWVWR WKH 3URMHFW 'LUHFWRU DQG LV UHVSRQVLEOHIRU ‡ 0DQDJHPHQWDQGDSSURYDORISURGXFWVSULRUWRVXEPLVVLRQWRWKH&OLHQW ‡ 5HYLHZLQJWKH7HFKQLFDO(QYLURQPHQWDODQG+HDOWKDQG6DIHW\UHTXLUHPHQWVRIWKH SURMHFW WHDP WR HQVXUH WKDW DGHTXDWH VNLOOV H[LVW ZLWKLQ WKH 3URMHFW 7HDP DQG GHWHUPLQLQJZKHWKHUDQ\DGGLWLRQDOWUDLQLQJRUH[WHUQDODGYLFHLVUHTXLUHG ‡ 7DNLQJDFWLRQZKHQHYHUWKHUHLVHYLGHQFHWKDWTXDOLW\VWDQGDUGVDUHQRWEHLQJPHWRU WKH 4XDOLW\ 0DQDJHPHQW 3ODQ QHHGV UHYLVLRQ WR PHHW WKH UHTXLUHPHQWV RI WKH SURMHFW ,Q VXFK FDVH WKH 3URMHFW 0DQDJHU VKDOO LPPHGLDWHO\ UHSRUW WR WKH 3URMHFW 'LUHFWRUWRDJUHHFRUUHFWLYHDFWLRQV ‡ 4XDOLW\PDQDJHPHQWRIWKH'HVLJQHU¶VSURMHFWDFWLYLWLHVLQFOXGLQJDXGLWLQJUHYLHZLQJ WKH UHVXOWV RI DXGLWV DQG HQVXULQJ LPSOHPHQWDWLRQ RIHIIHFWLYH FRUUHFWLYHDFWLRQVWR DGGUHVVQRQFRQIRUPLWLHV ‡ (VWDEOLVKLQJPDLQWDLQLQJDQGUHSRUWLQJRQWKH4XDOLW\0DQDJHPHQW6\VWHP ‡ 3UHSDULQJ RUGHOHJDWLQJSUHSDUDWLRQWRRWKHUV DQGUHYLHZLQJSURMHFWVSHFLILFTXDOLW\ GRFXPHQWDWLRQ ‡ (QVXULQJFRPSOLDQFHZLWKWKH'HVLJQHUV4$SURFHGXUHVDQGWKRVHRIRWKHUSDUWLHV LQYROYHG LQ WKH SURMHFW (QVXULQJ WKDW HIIHFWLYH FRUUHFWLRQ DFWLRQV DUH WDNHQ RQ LGHQWLILHGSUREOHPV   'HVLJQ0DQDJHUDQG'LVFLSOLQH/HDGVZLOOUHSRUWWRWKH'HVLJQ3URMHFW0DQDJHUDQGEH UHVSRQVLEOHIRU ‡ 0DQDJHPHQWDQGUHYLHZLQJRIWHFKQLFDOZRUNXQGHUWDNHQE\WKHLUGHVLJQWHDP ‡ 0DQDJHPHQWRIGHVLJQFRQVWUXFWDELOLW\DQGUHYLHZFKHFNLQJSURFHVVHV ‡ 3UHSDULQJ RUGHOHJDWLQJSUHSDUDWLRQWRRWKHUV DQGUHYLHZLQJSURMHFWVSHFLILFTXDOLW\ GRFXPHQWDWLRQ ‡ 0RQLWRUDQGUHSRUWSURJUHVVRIWKHGHVLJQIRUWKHLUGLVFLSOLQH 

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

 'RFXPHQW&RQWUROOHU3URMHFW6XSSRUW7KH'RFXPHQW&RQWUROOHUUHSRUWVWRWKH'HVLJQ 3URMHFW0DQDJHUDQGLVUHVSRQVLEOHIRU ‡ (QVXULQJDOOUHOHYDQWGRFXPHQWVDUHSURSHUO\UHJLVWHUHGDQGVWRUHG)RUWKLVVFKHPH D%06DSSURYHGGRFXPHQWQXPEHULQJV\VWHPZLOOEHXVHGDQGDOOGRFXPHQWDWLRQ ZLOOEHILOHGDQGVWRUHGRQ3URMHFWZLVHXVLQJWKLVQXPEHULQJV\VWHP ‡ (QVXULQJ WKDW DOO FRQWUDFW FRUUHVSRQGHQFH LV SURSHUO\ PDQDJHG WR SURYLGH DQ DFFXUDWHUHFRUG ‡ 0RQLWRUDQGUHSRUWRQWKHDERYH   7HFKQLFDODQG4XDOLW\3HHU5HYLHZHU7KH7HFKQLFDODQG4XDOLW\3HHU5HYLHZHUZLOOEH LQGHSHQGHQWRIWKH3URMHFW0DQDJHUDQGZLOOEHUHVSRQVLEOHIRU ‡ (QVXULQJ WKH SURMHFW IROORZVLV FRPSOLDQW ZLWK WKH 'HVLJQHUV 4$ SURFHGXUHV GRFXPHQWHGZLWKLQWKLV3ODQ   &RQWLQJHQF\3ODQQLQJ

 7KH IRUP RI FRQWUDFW ZLOO EH 1(& 2SWLRQ $ 3ULFHG &RQWUDFW ZLWK $FWLYLW\ 6FKHGXOH  2XU ULVN DOORZDQFH ZLOO EH XVHG DV D FRQWLQJHQF\ IXQG GXULQJ WKH ZRUNV WR PDQDJH &RPSHQVDWLRQ(YHQWVDQGWRGHDOZLWKDQ\FRVWLQFUHDVHVZKLFKFRXOGQRWEHIRUHVHHQ SULRUWRFRQVWUXFWLRQ:HHNO\ULVNUHGXFWLRQPHHWLQJVZLOOEHXQGHUWDNHQWKURXJKRXWWKH FRQVWUXFWLRQ SHULRG WR FRQWLQXRXVO\PDQDJHWKHOHYHORIULVNDQG WR HQVXUH WKH FRQWLQJHQF\YDOXHLVQRWH[FHHGHG 

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

 7KH&RPPHUFLDO&DVH

 ,QWURGXFWLRQ

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x 6HFWLRQ  ZLOO SURYLGH HYLGHQFH WKDW 1RUWK 7\QHVLGH &RXQFLO DUH VHHNLQJ IXQGLQJWKURXJKWKHPRVWDSSURSULDWHURXWHVDQGZKDWWKHNH\VFKHPHRXWFRPHV DQGRXWSXWVDUH x 6HFWLRQZLOOSURYLGHRXUSURFXUHPHQWVWUDWHJ\DQGVRXUFLQJRSWLRQV x 6HFWLRQZLOORXWOLQHKRZZHKDYHLGHQWLILHGULVNDQGZKRRZQVWKHULVN x 6HFWLRQ  VHWV RXW WKH W\SH RI FRQWUDFW OHQJWK DQG NH\ FODXVHV DQG KRZ WKH FRQWUDFWVZLOOEHPDQDJHG   6FKHPH-XVWLILFDWLRQ

 7KLVIXQGLQJVFKHPHLVDSSURSULDWHDVWKHVFKHPHLVOLQHZLWKWKHSROLF\FKDOOHQJHVVHW RXW LQ WKH DGRSWHG $VVXUDQFH )UDPHZRUN HJ LQ VXSSRUWLQJ MREVDQGLPSURYLQJ FRQQHFWLYLW\ IURP UHVLGHQWLDO DUHDVWR HPSOR\PHQW RSSRUWXQLWLHV7KH OHYHO RIIXQGLQJ VRXJKW WR GHOLYHU WKH VFKHPH ZRXOG QRW EH PDQDJHDEOH ZLWKLQ WKH&RXQFLO¶V/73 LQWHJUDWHG WUDQVSRUW EORFN DOORFDWLRQ ERWK LQ WHUPV RI OHYHO RI IXQGLQJ UHTXLUHG DQG GHOLYHULQJZLWKLQWKHLGHQWLILHGFRQVWUXFWLRQSHULRG   3URFXUHPHQW6WUDWHJ\ 6RXUFLQJ2SWLRQV

 ,Q1RYHPEHU1RUWK7\QHVLGH&RXQFLO>17&@DQG&DSLWDHQWHUHGLQWRD\HDU SDUWQHUVKLS WR GHOLYHU D UDQJH RI VHUYLFHV VHFXULQJ PXOWLPLOOLRQ SRXQG LQYHVWPHQW LQ WKHERURXJK 

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

 7KH3DUWQHUVKLSLVFRPPLWWHGWRQRWRQO\LPSURYLQJFRXQFLOVHUYLFHVEXWDOVRLQYHVWLQJ LQ WKH ERURXJK FUHDWLQJ IXUWKHU MREV DQG DSSUHQWLFHVKLSV E\ GHYHORSLQJ1RUWK 7\QHVLGHDVDFHQWUHRIH[FHOOHQFHIRUWKHEXVLQHVVLQWKHUHJLRQDQGQDWLRQDOO\   7KHVHUYLFHVLQFOXGHGZLWKLQWKHSDUWQHUVKLSLQFOXGH x 3URSHUW\ x (QJLQHHULQJ 'HVLJQ %XLOG  x 3ODQQLQJDQG%XLOGLQJ&RQWURO x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¶VSDUWQHU&DSLWDDVSDUW RI WKH FRQVWUXFWLRQ SDUWQHUVKLS WHQGHULQJ RSSRUWXQLW\ 7KLV LGHQWLILHG D VKRUWOLVW RI DSSURSULDWHVXSSO\FKDLQFRQWUDFWRUV   3D\PHQWPHFKDQLVPV

 7KLVZLOOEHWKURXJKWKHIUDPHZRUNFRQWUDFWZLWKDQLQGLYLGXDO1(&2SWLRQ$ 3ULFHG &RQWUDFWZLWK$FWLYLW\6FKHGXOH  

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

 5LVNLGHQWLILFDWLRQDOORFDWLRQDQGWUDQVIHU

 )RU WKH SXUSRVH RI WKH FRPPHUFLDO FDVH ZH KDYH GHILQHG ULVNV DV RXWOLQHG ZLWKLQ :HE7DJXQLW$DV³LGHQWLILDEOHIDFWRUVWKDWPD\LPSDFWRQDVFKHPHFRVWOHDGLQJWR RYHURUXQGHUVSHQGV,QRUGHUWRLGHQWLI\DQGGHYLVHDVWUDWHJ\WRPDQDJHWUDQVIHURU DYRLG WKH ULVN DQG XQGHUVWDQG WKH FRVW RI WKH UHVLGXDO ULVN UHPDLQLQJ ZH KDYH GHYHORSHGD4XDQWLILHG5LVN$VVHVVPHQW 45$ 7KLVKDVHQDEOHGXVWRSURGXFHDULVN DGMXVWHGFRVWHVWLPDWH   :H KDYH DGRSWHG WKH UHFRPPHQGHG IRXU VWDJH SURFHVV LQ WKH GHYHORSPHQW RI WKH 45$RI x 5LVN,GHQWLILFDWLRQ x $VVHVVLQJWKH,PSDFWRI5LVN x (VWLPDWLQJWKH/LNHOLKRRGRIWKH,PSDFWVRI5LVNDQG x 'HULYLQJWKHRYHUDOOGLVWULEXWLRQDQGH[SHFWHGYDOXHRIWKH5LVNIRUWKHVFKHPH x 0DQDJLQJWKHULVNV   7KH GHYHORSPHQW RI WKH ULVN UHJLVWHU DQG 45$ LV SUHVHQWHG LQ GHWDLO ZLWKLQ WKH PDQDJHPHQWFDVH  &RQWUDFW/HQJWK

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

 7KH VXSSO\ FKDLQ KDV HQJDJHG HDUO\ RQ ZLWK GHVLJQHUV WR SURYLGHHDUO\FRQWUDFWRU LQYROYHPHQW WR LPSURYH EXLOGDELOLW\ UHGXFH SURJUDPPH DQG SURFXUHPHQW OHDGLQ LPSURYLQJYDOXHIRUPRQH\2XUVXSSO\FKDLQKDVSURYLGHGGHWDLOHGFRVWVZKLFKKDYH EHHQUHYLHZHGDQGQHJRWLDWHGGRZQWRSURYLGHDFRVWDQGZLOOEHSURFXUHGRQDEDVLV RID1(&2SWLRQ$FRQWUDFW 

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

 7KURXJK WKH 3DUWQHUVKLS &DSLWD DQG 1RUWK 7\QHVLGH &RXQFLOVKDUHRIILFH DFFRPPRGDWLRQ LPSURYLQJ FRPPXQLFDWLRQ WKURXJK UHJXODU IRUPDO DQG LQIRUPDO PHHWLQJV ZLWK WKH FOLHQW WR GLVFXVV HDUO\ ZDUQLQJV XSGDWH RQ SURJUHVV DQG SURYLGH LQVLJKWWRULVNVZKLFKH[LVWWKHUHE\EHQHILWWLQJIURPWKHLUNQRZOHGJHRIORFDOFRQVWUDLQWV DQGWKHEHQHILWRIWKHFRQWUDFWRUVH[SHULHQFHSURYLGLQJDMRLQHGXSSURMHFWDSSURDFKWR PDMRUVFKHPHV         

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

 7KH)LQDQFLDO&DVH

 ,QWURGXFWLRQ

 7KH ILQDQFLDO FDVH ZLOO FRQFHQWUDWH RQ WKH DIIRUGDELOLW\ RI WKH SURSRVDO WKH IXQGLQJ DUUDQJHPHQWV DQG WKH VSHQGLQJ SURILOH 7KH ILQDQFLDO FDVH WKHUHIRUH VHWV RXW WKH RXWWXUQFRVWVRIWKHSURSRVDOVZLWKDQH[SODQDWLRQRIKRZDWKRURXJKFRQVLGHUDWLRQRI ULVNKDVEHHQLQFOXGHGLQWKHGHYHORSPHQWRIWKHVFKHPHFRVWV   'I7 JXLGDQFH VWDWHV WKDW LW LV HVVHQWLDO WKDW SURPRWLQJ DXWKRULWLHV GHYHORS D VRXQG ILQDQFLDOSODQIRUSURFHHGLQJZLWKDPDMRUVFKHPHELG7KLVVKRXOGFRQVLGHUDOOVRXUFHV RI IXQGLQJ WKH FRQGLWLRQV DVVRFLDWHG ZLWK HDFK RI WKHP DQG WKHILQDQFLDOULVNVDQG FRQWLQJHQWOLDELOLWLHVWKDWPD\UHVXOWVKRXOGDQ\IXQGLQJVWUHDPIDLOWRPDWHULDOLVH   $ JHQHUDO IODZ E\ DSSUDLVHUV KDV WHQGHG WR EH WR XQGHUHVWLPDWH VFKHPH FRVWV DQG RYHUHVWLPDWHVFKHPHEHQHILWV±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

 7KHVFKHPHFRVWVKDYHEHHQLGHQWLILHGLQWHUPVRIH[SHFWHGRXWWXUQFRVWDQGLQFOXGH VFKHPHSUHSDUDWLRQGHVLJQFRQVWUXFWLRQFRVWVDQGVXSHUYLVLRQFRVWV:KLOVWZHKDYH SURYLGHG DQ LQGLFDWLRQ RI VFKHPH PRQLWRULQJ DQG HYDOXDWLRQ FRVWV ZLWKLQ WKH 0DQDJHPHQW&DVHWKHVHKDYHQRWEHHQLQFOXGHGZLWKLQWKHEDVHVFKHPHFRVW7KH GHWDLOHGEUHDNGRZQRIFRVWVLVSURYLGHGZLWKLQ$SSHQGL[%   7KH VFKHPH FRVWV KDYH EHHQ SURYLGHG E\ &DSLWD¶V FRQVWUXFWLRQ SDUWQHU (VK 7KH VSHQGSURILOHVKDYHDOVREHHQSURYLGHGWR(VKDQGDVVXFKWKH\KDYHEXLOWLQLQIODWLRQ LQWRWKHFRVWV5LVNDOORZDQFHKDVEHHQLGHQWLILHGE\WKHGHVLJQWHDPEDVHGRQWKHULVN UHJLVWHUGHYHORSHGLQWKHULVNZRUNVKRS7KHUHDUHQRODQGFRVWVDVVRFLDWHGZLWKWKH VFKHPH   7KHFRVWHVWLPDWHVDUHWKHUHIRUHEXLOWXSIURPWKHIROORZLQJNH\FRPSRQHQWV  x 6FKHPHSUHSDUDWLRQDQGGHVLJQIHHV 

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

x &RQVWUXFWLRQFRVW x 5LVNDOORZDQFH x 2SWLPLVPELDV    7DEOHEHORZSURYLGHVWKHVXPPHU\RIWKHFRVWHVWLPDWHVIRUWKHVFKHPHH[FOXGLQJ PRQLWRULQJDQGHYDOXDWLRQFRVWHVWLPDWHV7KHIXOOVFKHPHFRVWEUHDNGRZQLVSURYLGHG ZLWKLQ$SSHQGL[%  7DEOHFRVWHVWLPDWHVXPPDU\ ,WHP &RVW(VWLPDWH &RQVWUXFWLRQ&RVWV±0DLQ3K\VLFDO:RUNVDQG  LQYHVWLJDWLYHVXUYH\V 6FKHPHSUHSDUDWLRQDQGGHVLJQIHHV  6XSHUYLVLRQ)HHV  5LVN$OORZDQFH  7RWDO6FKHPH&RVW    $IIRUGDELOLW\

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¶VEDODQFHVKHHW  %UHDNGRZQDQG3URILOHRI&RVWV

7DEOH6SHQG3URILOHVXPPDU\ )LQDQFLDO

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

Interchange   A19 Holystone Interchange, A191 Widening and Cobalt works     7DEOH/RFDO&RQWULEXWLRQ&RVW%UHDNGRZQ )LQDQFLDO /(3 17& 7RWDO

 $ ULVN DOORZDQFH RI  KDV EHHQ DSSOLHG WR WKH EDVHFRVW7KLVILJXUHZDVD GLUHFWRXWSXWIURPWKHULVNZRUNVKRSXQGHUWDNHQ7KHGHWDLOVRIWKLVDUHSURYLGHGZLWKLQ WKHPDQDJHPHQWFDVH   %XGJHWV)XQGLQJFRYHU

 6KRXOG WKH VFKHPH FRVW H[FHHG  1RUWK 7\QHVLGH &RXQFLO ZRXOG IXQG WKH VKRUWIDOOWKURXJKLQWHUQDOEXGJHWV 

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

$SSHQGL[$'UDZLQJV 

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

$SSHQGL[%&RVW(VWLPDWHV

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

$SSHQGL[&6WDNHKROGHU(QJDJHPHQW 6WUDWHJ\

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

$SSHQGL['0RQLWRULQJDQG(YDOXDWLRQ 5HSRUW

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

$SSHQGL[(/RFDO0RGHO9DOLGDWLRQ5HSRUW

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

$SSHQGL[)4XDQWLILHG5LVN$VVHVVPHQW

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

$SSHQGL[*±3URJUDPPH

 $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

$SSHQGL[+±8QFHUWDLQW\/RJ  

   

 



&DSLWD3URSHUW\DQG,QIUDVWUXFWXUH/WG 1RUWK7\QHVLGH&RXQFLO 7KH4XDGUDQW 7KH6LOYHUOLQN1RUWK &REDOW%XVLQHVV3DUN 1RUWK7\QHVLGH1(%<   ZZZFDSLWDFRXN  $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

$SSHQGL[$'UDZLQJV 

 P01.1 - 10-SEP-15

-

App'd

Chk'd Drwn www.capitaproperty.co.uk Capita Property and Infrastructure Ltd. Property and Infrastructure The Quadrant, Silverlink North, Cobalt Business Park, NE27 0BY - 0191 643 4819

S2 - Issued for Information Commercial in Confidence North Tyneside Council A19 EMPLOYMENT ACCESS - COBALT SEP Pavement Layout Sheet 1 of 77874-CS-00-HPV-DR-C-0001

Classification Client Scale at A1 Drawn Checked Approved Project - Originator Zone Level File Type Role Number Revision RevPurpose of Issue Description Date Project Drawing Project No. Date Drawing Identifier CS077874 1:1500 MI 6

ST ALB 11 25 75.6

13 54 24

46 7

8 COLWELL ROAD 20

48 1

NEW YORK ROAD

ETL Gas Gov

42 14 5

34

50 38

36

2 11 52 9

56

9 13 The Allotment 20

5 17 12 Garage

LILBURN ROAD THE SILVERLINK NORTH SILVERLINK THE 29

15 b & c

Path 41 59

56 verified at sub-formation level by agreement with the Supervisor. CBR value to be measured and

Dismantled Railway Shaft

64 46

67 48 Hospital

ETL Cobalt House (PH) Arms

NEW YORK ROAD 10 Community Centre

Hotel

3

5

7

9 12

1 The Allotment

3 QUICK SILVER WAY SILVER QUICK

11 Pond 18

145

BENTON ROAD BENTON

94

20 22 21 69

88 Allotment Gardens 23

7 96

25

War Memorial West Allotment Methodist Church

153

133 29 A 191

2

Allotment Gardens 110

75

64

87 100 136

105

33 BAYFIELD

77 163

Path ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••

63 35 verified at sub-formation level by CBR value to be measured and agreement with the Supervisor.

138 121 62

167 HOLYFIELDS

El Sub Sta 82

128 115 37

39

39

43

41 119

168

20 11 15 175 13 Play Area West Allotment

162 7 TCB

146 1 Track 21 122 1

1

PO TURNER STREET

LB 2 1

1

1 3

Preston Terrace Preston

91b 172 HOLYFIELDS 7

1 25

1

156

72

160 1 1 13

27 91a

93 31

17 BENTON ROAD 30

7

8 25 Post

7

70 7

20 1

7

•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••

7

Co-operative Terrace Co-operative

15

BROOKFIELD 105 112

7 33

7 7 l20

113 109

6

Post

60 13

verified at sub-formation level by 14

CBR value to be measured and agreement with the Supervisor. 13 13 14a

111 HOLYFIELDS 87

1 75

13 13

Griffith Terrace

45 Taylor Terrace Lamb Terrace Post 13 94 13 Maud Terrace

13 Buddle Terrace North Terrace Carlisle Terrace 2

Eccles Terrace 25 63

13

13

Cramlington Terrace Cramlington 16 14

Post 29 19 77 24 73

39 56 20 100

19 19 20 18 92 18

55 86 88

Post HOLYFIELDS 13

22

81 Terrace Earsdon

10

1

94

69 53

HOLYFIELDS BROOKFIELD

68

57 9 80 26 9a 70 23 26

98 2 22 23

22 Post 49

25 25

19 52

76 51 25 26 28 1 28 17

25 24 90 24

•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••

65 North 15 27 61 29

Terrace

25 66

8

11 Post Terrace Ryton BROOKFIELD 72 Eccles Terr

26

Carlisle Terr 50

70 1

28 Terrace Holywell 73.27

Maud Terrace

78 Buddle Terrace

72 88 - 80 Lamb Terrace

29 Griffith Terrace

7 27 57 STREET WEST Post

72.1 7 Taylor Terrace 31 31 72.9

El Sub Sta

1

3 34 5

1 35 Rudyerd House

1 10

25

HOLYFIELDS 71.9 5

42 6

Works 52

Backworth Terrace

31 - 43 - 31

51 61

2

11

15 4 112

17 114

Cheviot View Path

and

Club

8

30 108 Institute

15

140

16

126

138

118 22

142 73 El Sta Sta Sub

verified at sub-formation level by CBR value to be measured and agreement with the Supervisor.

16 188 124 86 14 98 6 80

CLOVERFIELD 1

BENTON ROAD 84

148 A 191 A

28 158 75 26 78 94

3 •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• • ••••••••••••••••••••••••••••••••••••••• 166 182 125

79 72

32 MURRAYFIELDS 76

84

83 85a MURRAYFIELDS

83a

67 170 85

176 64

58

60 42 Path

32

71 90 40 113

54

56 61 95

CR Boro Const & Ward Bdy

98 94

101

38 MURRAYFIELDS A 19

58 46 41 47 Playground Ppg Sta

1

51 52 ••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••

••••••••••••••••••

agreement with the Supervisor. the with agreement

verified at sub-formation level by level sub-formation at verified CBR value to be measured and measured be to value CBR

EDMUND ROAD Motel PH The Stonebrook

FRANCIS WAY

surfacing. Limits of Limits El Sub Sta

N Car Park 97

76 95 • ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••

h RTS WAY RTS HPV-DR-C-0001 PAVEMENT.DWG Printed by: Deji Olaoye On: 15/Dec/2015 At: 17:34 At: 15/Dec/2015 On: Olaoye Deji by: Printed PAVEMENT.DWG HPV-DR-C-0001 PAVEMENTS\DRAWING\77874-CS-00- - DRAWINGS\WORKING\DELIVERY\HPV ACTIVITIES\1 WORK RBT\B HOLYSTONE A19 & X:\INFRASTRUCTURE\COBALT Holystone Key:

72.51 (PH) 1 CARRIAGEWAY CONSTRUCTION (Type P1) Excavate existing verge / footway, dispose of acceptable N / unacceptable earthwork material and construct carriageway. CARRIAGEWAY OVERLAY / RESURFACING For overlay thickness, cold milling and regulating, see drawings CS-00-HPV-DR-C-0002 series.

FOOTWAY CONSTRUCTION (TYPE F1) Prepare existing surface for footway construction - excavate / overlay / re-profile. 60 66 FOOTWAY CONSTRUCTION (TYPE F?) 68 Prepare existing surface for footway construction - ST CUTHBERTS WAY excavate / overlay / re-profile. Crimped Concrete.

70 FOOTWAY CONSTRUCTION (TYPE F?) Prepare existing surface for footway construction - excavate / overlay / re-profile. Tegular block paving.

Car Park FOOTWAY RESURFACING Excavate existing bituminous material. Process and re-use as 6F2 capping. Re-profile existing footway and resurface to new levels. 87 HARD EXCAVATION

76 Break-up and remove bitumen / concrete material. 95 Process and re-use as 6F2 capping. 97 VERGE CONSTRUCTION Excavate existing or fill to new profile. Topsoil 150mm thick with grass seed mix. See Appendix 30/5.

Carriageway narrow widening less than 1.2m refer to typical cross section drawing.

NOTES:

1. This drawing should not be scaled. All dimensions must be checked on site, and the contractor is to report any omissions or errors to the contract administrator.

2. Capping thickness is based on a CBR value of 4%. Actual CBR is to be measured on site, and capping thickness adjusted accordingly.

3. Refer to setting-out details and cross-sections for proposed SHE feature dimensions etc. Limits of 4. Refer to Appendix 6/7 for surface treatment of formation / surfacing. 1.1 to 1.5 sub-formation.

5. Proposed carriageway make-up as Appendix 7/1 and above key. SAFETY, HEALTH AND ENVINRONMENTAL INFORMATION In addition to the hazards/risks normally associated with the 6. Proposed footway, footway / cycleway make-up as Appendix types of work detailed on this drawing, note the following: 11/1 & above key. CONSTRUCTION: 7. All arisings (acceptable & unacceptable material) through excavations for carriageway and footway / cycleway 1.1. SITE SAFETY / SECURITY: ENSURE WORK AREAS ARE construction are to be removed from site and disposed of to SEGREGATED FROM THE GENERAL PUBLIC BY (licensed) tip off site. MEANS OF ROBUST PHYSICAL BARRIERS, AND

The Stonebrook THESE AREAS ARE SECURE OUTSIDE OF WORKING HOURS.

1.2. THE OVERALL NUMBER OF WORK AREAS ARE TO BE KEPT TO A MINIMUM. ENSURE DEFINED EGRESS AND

PH ACCESS ROUTES FOR CONSTRUCTION VEHICLES.

1.3. CONSTRUCTION WORKS IN THE VICINITY OF THE GENERAL PUBLIC, AND MOVING PUBLIC SERVICE VEHICLES.

1.4. SHALLOW / UNCHARTED PUBLIC UTILITY APPARATUS IN AREAS OF EXCAVATION.

1.5. TRAFFIC MANAGEMENT: PEDESTRIANS AND CYCLISTS ENTERING SEGREGATED AREAS OF THE WORKS. CONSIDER ROPING BETWEEN CONES OR Rev Description Date Drwn App'd PLACING RAILWAY SLEEPERS BETWEEN CONES. Chk'd Purpose of Issue

SAFETY, HEALTH AND ENVIRONMENTAL INFORMATION S2 - Issued for Information Refer to the relevant Construction (Design and Management) documentation where applicable. Classification

CBR value to be measured and It is assumed that all works on this drawing will be carried out by a competent Commercial in Confidence verified at sub-formation level by contractor, working where appropriate to approved method statements and risk assessments. agreement with the Supervisor. Client North Tyneside Council

Project A19 EMPLOYMENT ACCESS -

HPV-DR-C-0001 PAVEMENT.DWG HPV-DR-C-0001 by: Printed On: Deji Olaoye15/Dec/2015 At: 17:34 COBALT SEP

Drawing Pavement Layout

Sheet 1 of 5

Scale at A1 Drawn Checked Approved 1:500 MI - -

Project No. Date CS077874 10-SEP-15

Drawing Identifier Project - Originator - Zone - Level - File Type - Role - Number Revision

77874-CS-00-HPV-DR-C-1001 P01.1 1

52 51 Property and Infrastructure The Quadrant, The Silverlink North, Cobalt Business Park, North Tyneside NE27 0BY - 0191 643 4819 www.capitaproperty.co.uk Capita Property and Infrastructure Ltd. X:\INFRASTRUCTURE\COBALT & A19 HOLYSTONE RBT\B WORK ACTIVITIES\1 DRAWINGS\WORKING\DELIVERY\HPV - PAVEMENTS\DRAWING\77874-CS-00- DRAWINGS\WORKING\DELIVERY\HPV ACTIVITIES\1 RBT\B WORK HOLYSTONE & A19 X:\INFRASTRUCTURE\COBALT

• ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• Key: 86 95 CARRIAGEWAY CONSTRUCTION (Type P1) Excavate existing verge / footway, dispose of 112 acceptable / unacceptable earthwork material and construct carriageway. N CARRIAGEWAY OVERLAY / RESURFACING

61 For overlay thickness, cold milling and regulating, see 57 drawings CS-00-HPV-DR-C-0002 series. CARRIAGEWAY RECONSTRUCTION Excavate and dispose of acceptable / unacceptable earthwork material. Process bituminous material and 72 re-use as 6F2 capping. Construct carriageway.

108 FOOTWAY CONSTRUCTION (TYPE F1) Prepare existing surface for footway construction - 101 94 excavate / overlay / re-profile.

FOOTWAY CONSTRUCTION (TYPE F?) 85 Prepare existing surface for footway construction - 83a excavate / overlay / re-profile. Tegular block paving. 83 98 FOOTWAY RESURFACING Excavate existing bituminous material. Process and 79 re-use as 6F2 capping. Re-profile existing footway and 2 resurface to new levels. SHE HARD EXCAVATION Break-up and remove bitumen / concrete material. 1.1 to 1.5 75 Process and re-use as 6F2 capping. 86 VERGE CONSTRUCTION 113 Excavate existing or fill to new profile. Topsoil 150mm thick with grass seed mix. See Appendix 30/5. SAFETY, HEALTH AND ENVINRONMENTAL INFORMATION 85a 73 80 In addition to the hazards/risks normally associated with the Carriageway narrow widening less than 1.2m refer to types of work detailed on this drawing, note the following: typical cross section drawing. CONSTRUCTION: 76 NOTES: 1.1. SITE SAFETY / SECURITY: ENSURE WORK AREAS ARE 1. This drawing should not be scaled. All dimensions must be SEGREGATED FROM THE GENERAL PUBLIC BY 125 MEANS OF ROBUST PHYSICAL BARRIERS, AND checked on site, and the contractor is to report any THESE AREAS ARE SECURE OUTSIDE OF WORKING omissions or errors to the contract administrator. HOURS. 88 72 2. Capping thickness is based on a CBR value of 4%. Actual 1.2. THE OVERALL NUMBER OF WORK AREAS ARE TO BE CBR is to be measured on site, and capping thickness KEPT TO A MINIMUM. ENSURE DEFINED EGRESS AND adjusted accordingly. ACCESS ROUTES FOR CONSTRUCTION VEHICLES. 3. Refer to setting-out details and cross-sections for proposed 1.3. CONSTRUCTION WORKS IN THE VICINITY OF THE feature dimensions etc. GENERAL PUBLIC, AND MOVING PUBLIC SERVICE VEHICLES. 4. Refer to Appendix 6/7 for surface treatment of formation / 70 sub-formation. 1.4. SHALLOW / UNCHARTED PUBLIC UTILITY APPARATUS IN AREAS OF EXCAVATION. 5. Proposed carriageway make-up as Appendix 7/1 and above key. 68 1.5. TRAFFIC MANAGEMENT: PEDESTRIANS AND CYCLISTS ENTERING SEGREGATED AREAS OF THE 6. Proposed footway, footway / cycleway make-up as 52 Appendix 11/1 & above key. WORKS. CONSIDER ROPING BETWEEN CONES OR HOLYFIELDS PLACING RAILWAY SLEEPERS BETWEEN CONES. 7. All arisings (acceptable & unacceptable material) through excavations for carriageway and footway / cycleway SAFETY, HEALTH AND ENVIRONMENTAL INFORMATION construction are to be removed from site and disposed of to (licensed) tip off site. Refer to the relevant Construction (Design and Management) documentation where applicable. A 191 30 It is assumed that all works on this drawing will be carried out by a competent 66 contractor, working where appropriate to approved method statements and risk assessments. CBR value to be measured and verified at sub-formation level by agreement with the Supervisor.

53

51 El Sub Sta Rev Description Date Drwn App'd Chk'd Purpose of Issue

42 49 S2 - Issued for Information

Classification Commercial in Confidence

Client

16 11 North Tyneside Council 4 HOLYFIELDS

HOLYFIELDS 1 15

2 17 19 Project 7 A19 EMPLOYMENT ACCESS -

HPV-DR-C-0001 PAVEMENT.DWG HPV-DR-C-0001 by: Printed On: Deji Olaoye15/Dec/2015 At: 17:34 COBALT SEP

3 Drawing BENTON ROAD

58 Pavement Layout

50 MURRAYFIELDS 1 Sheet 2 of 5 61 52 Scale at A1 Drawn Checked Approved 64

MURRAYFIELDS 52 1:500 MI - -

1 55 Project No. Date CS077874 10-SEP-15 51

47 98 Drawing Identifier Project - Originator - Zone - Level - File Type - Role - Number Revision North 77874-CS-00-HPV-DR-C-1002 P01.1 Club 73.27 3 and Terrace

Institute Rudyerd House 25 67 24 22

46 Works Property and Infrastructure The Quadrant, The Silverlink North, Cobalt Business Park, North Tyneside NE27 0BY - 0191 643 4819 www.capitaproperty.co.uk

71 Capita Property and Infrastructure Ltd. X:\INFRASTRUCTURE\COBALT & A19 HOLYSTONE RBT\B WORK ACTIVITIES\1 DRAWINGS\WORKING\DELIVERY\HPV - PAVEMENTS\DRAWING\77874-CS-00- DRAWINGS\WORKING\DELIVERY\HPV ACTIVITIES\1 RBT\B WORK HOLYSTONE & A19 X:\INFRASTRUCTURE\COBALT 7 6 • ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• Key: 98 33 CARRIAGEWAY CONSTRUCTION (Type P1) Excavate existing verge / footway, dispose of 81 acceptable / unacceptable earthwork material and 21 construct carriageway. N SHE CARRIAGEWAY OVERLAY / RESURFACING 87 For overlay thickness, cold milling and regulating, see 11 1.1 to 1.5 drawings CS-00-HPV-DR-C-0002 series. 77 88 CARRIAGEWAY RECONSTRUCTION Excavate and dispose of acceptable / unacceptable 25 SAFETY, HEALTH AND ENVINRONMENTAL INFORMATION earthwork material. Process bituminous material and re-use as 6F2 capping. Construct carriageway. In addition to the hazards/risks normally associated with the types of work detailed on this drawing, note the following: FOOTWAY CONSTRUCTION (TYPE F1) BROOKFIELD Prepare existing surface for footway construction -

90 94 CONSTRUCTION: excavate / overlay / re-profile.

1.1. SITE SAFETY / SECURITY: ENSURE WORK AREAS ARE FOOTWAY CONSTRUCTION (TYPE F?) 110 SEGREGATED FROM THE GENERAL PUBLIC BY Prepare existing surface for footway construction - MEANS OF ROBUST PHYSICAL BARRIERS, AND excavate / overlay / re-profile. Tegular block paving. BAYFIELD THESE AREAS ARE SECURE OUTSIDE OF WORKING HOURS. FOOTWAY RESURFACING 73 Excavate existing bituminous material. Process and 1.2. THE OVERALL NUMBER OF WORK AREAS ARE TO BE re-use as 6F2 capping. Re-profile existing footway and KEPT TO A MINIMUM. ENSURE DEFINED EGRESS AND resurface to new levels. 65 ACCESS ROUTES FOR CONSTRUCTION VEHICLES. 105 HARD EXCAVATION 1.3. CONSTRUCTION WORKS12 IN THE VICINITY OF THE Break-up and remove bitumen / concrete material. 45 GENERAL PUBLIC, AND MOVING PUBLIC SERVICE Process and re-use as 6F2 capping. VEHICLES. 69 VERGE CONSTRUCTION 1.4. SHALLOW / UNCHARTED PUBLIC UTILITY APPARATUS Excavate existing or fill to new profile. Topsoil 150mm 82 thick with grass seed mix. See Appendix 30/5. IN AREAS OF EXCAVATION. 94 BROOKFIELD Carriageway narrow widening less than 1.2m refer to 1.5. TRAFFIC MANAGEMENT: PEDESTRIANS AND typical cross section drawing. CYCLISTS ENTERING SEGREGATED AREAS OF THE WORKS. CONSIDER ROPING BETWEEN CONES OR NOTES: 96 PLACING RAILWAY SLEEPERS BETWEEN CONES. 18 1. This drawing should not be scaled. All dimensions must be checked on site, and the contractor is to report any 57 SAFETY, HEALTH AND ENVIRONMENTAL INFORMATION 61 omissions or errors to the contract administrator. Refer to the relevant Construction (Design and Management) documentation where applicable. 100 2. Capping thickness is based on a CBR value of 4%. Actual It is assumed that all works on this drawing will be carried out by a competent CBR is to be measured on site, and capping thickness contractor, working where appropriate to approved method statements and adjusted accordingly. risk assessments. 3. Refer to setting-out details and cross-sections for proposed 20 feature dimensions etc.

4. Refer to Appendix 6/7 for surface treatment of formation / sub-formation. CBR value to be measured and 77 verified at sub-formation level by 5. Proposed carriageway make-up as Appendix 7/1 and above agreement with the Supervisor. key. 75 6. Proposed footway, footway / cycleway make-up as Appendix 11/1 & above key.

7. All arisings (acceptable & unacceptable material) through excavations for carriageway and footway / cycleway construction are to be removed from site and disposed of to (licensed) tip off site.

112

2

100

86

175 80 A 191 Rev Description Date Drwn App'd Chk'd 76 Purpose of Issue

l20 172 CBR value to be measured and S2 - Issued for Information verified at sub-formation level by Classification agreement with the Supervisor. 88 167 72 94 Commercial in Confidence

160 Client North Tyneside Council 92 163

70 168 Project 68 A19 EMPLOYMENT ACCESS -

HPV-DR-C-0001 PAVEMENT.DWG HPV-DR-C-0001 by: Printed On: Deji Olaoye15/Dec/2015 At: 17:34 COBALT SEP HOLYFIELDS 113 156 153

111 162 138 Drawing Pavement Layout

63 66

Sheet 3 of 5 109 145 3 Scale at A1 Drawn Checked Approved

136 1:500 MI - -

HOLYFIELDS Project No. Date 53 105 CS077874 10-SEP-15

Drawing Identifier Project - Originator - Zone - Level - File Type - Role - Number Revision 51 77874-CS-00-HPV-DR-C-1003 P01.1

146 49 128 133 39 75 Property and Infrastructure HOLYFIELDS The Quadrant, The Silverlink North, Cobalt Business Park, North Tyneside NE27 0BY - 0191 643 4819 www.capitaproperty.co.uk 11 Capita Property and Infrastructure Ltd. X:\INFRASTRUCTURE\COBALT & A19 HOLYSTONE RBT\B WORK ACTIVITIES\1 DRAWINGS\WORKING\DELIVERY\HPV - PAVEMENTS\DRAWING\77874-CS-00- DRAWINGS\WORKING\DELIVERY\HPV ACTIVITIES\1 RBT\B WORK HOLYSTONE & A19 X:\INFRASTRUCTURE\COBALT HOLYFIELD 1 HOLYFIELDS • ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••5 ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• Key: 56 CARRIAGEWAY CONSTRUCTION (Type P1) Excavate existing verge / footway, dispose of acceptable / unacceptable earthwork material and 20 construct carriageway. N CARRIAGEWAY OVERLAY / RESURFACING 153 For overlay thickness, cold milling and regulating, see

59 drawings CS-00-HPV-DR-C-0002 series. Dismantled Railway CARRIAGEWAY RECONSTRUCTION Excavate and dispose of acceptable / unacceptable earthwork material. Process bituminous material and re-use as 6F2 capping. Construct carriageway. 67 FOOTWAY CONSTRUCTION (TYPE F1) Prepare existing surface for footway construction -

excavate / overlay / re-profile. 145 3 FOOTWAY CONSTRUCTION (TYPE F?) 64 7 Prepare existing surface for footway construction - 136 8 26 excavate / overlay / re-profile. Tegular block paving.

ST ALBANS VIEW FOOTWAY RESURFACING Excavate existing bituminous material. Process and NEW YORK ROAD re-use as 6F2 capping. Re-profile existing footway and resurface to new levels.

CBR value to be measured and HARD EXCAVATION verified at sub-formation level by Break-up and remove bitumen / concrete material. agreement with the Supervisor. Process and re-use as 6F2 capping. Garage VERGE CONSTRUCTION Excavate existing or fill to new profile. Topsoil 150mm thick with grass seed mix. See Appendix 30/5. 133 Carriageway narrow widening less than 1.2m refer to 6 typical cross section drawing.

NOTES:

1. This drawing should not be scaled. All dimensions must be checked on site, and the contractor is to report any omissions or errors to the contract administrator. 69 5 Northumberland 2. Capping thickness is based on a CBR value of 4%. Actual 3 CBR is to be measured on site, and capping thickness 9 Arms adjusted accordingly. 7 (PH) 3. Refer to setting-out details and cross-sections for proposed feature dimensions etc. Community Centre 4. Refer to Appendix 6/7 for surface treatment of formation / sub-formation.

ETL 5. Proposed carriageway make-up as Appendix 7/1 and above key. BENTON ROAD 6. Proposed footway, footway / cycleway make-up as Appendix 11/1 & above key.

75.6 7. All arisings (acceptable & unacceptable material) through 64 excavations for carriageway and footway / cycleway construction are to be removed from site and disposed of to NEW YORK ROAD (licensed) tip off site.

21 76.12

War

Memorial

22 23 Hospital

25

The Allotment 29 Gas Gov Rev Description Date Drwn App'd Chk'd Purpose of Issue

33 S2 - Issued for Information Classification Commercial in Confidence SHE Client West Allotment 1.1 to 1.5 North Tyneside Council Methodist Church The Allotment

SAFETY, HEALTH AND ENVINRONMENTAL INFORMATION

In addition to the hazards/risks normally associated with the Project types of work detailed on this drawing, note the following: CONSTRUCTION: A19 EMPLOYMENT ACCESS -

HPV-DR-C-0001 PAVEMENT.DWG HPV-DR-C-0001 by: Printed On: Deji Olaoye15/Dec/2015 At: 17:35 COBALT SEP 1.1. SITE SAFETY / SECURITY: ENSURE WORK AREAS ARE SEGREGATED FROM THE GENERAL PUBLIC BY Allotment Gardens MEANS OF ROBUST PHYSICAL BARRIERS, AND THESE AREAS ARE SECURE OUTSIDE OF WORKING Drawing HOURS. Pavement Layout 1.2. THE OVERALL NUMBER OF WORK AREAS ARE TO BE KEPT TO A MINIMUM. ENSURE DEFINED EGRESS AND ACCESS ROUTES FOR CONSTRUCTION VEHICLES. 1.3. CONSTRUCTION WORKS IN THE VICINITY OF THE Sheet 4 of 5 GENERAL PUBLIC, AND MOVING PUBLIC SERVICE VEHICLES. Scale at A1 Drawn Checked Approved 1.4. SHALLOW / UNCHARTED PUBLIC UTILITY APPARATUS 1:500 MI - - IN AREAS OF EXCAVATION. Project No. Date 1.5. TRAFFIC MANAGEMENT: PEDESTRIANS AND CYCLISTS ENTERING SEGREGATED AREAS OF THE CS077874 10-SEP-15 WORKS. CONSIDER ROPING BETWEEN CONES OR PLACING RAILWAY SLEEPERS BETWEEN CONES. Drawing Identifier Project - Originator - Zone - Level - File Type - Role - Number Revision SAFETY, HEALTH AND ENVIRONMENTAL INFORMATION 77874-CS-00-HPV-DR-C-1004 P01.1 Refer to the relevant Construction (Design and Management) documentation where applicable.

It is assumed that all works on this drawing will be carried out by a competent contractor, working where appropriate to approved method statements and risk assessments. Property and Infrastructure Pond The Quadrant, The Silverlink North, Cobalt Business Park, North Tyneside NE27 0BY - 0191 643 4819 5 www.capitaproperty.co.uk Capita Property and Infrastructure Ltd. X:\INFRASTRUCTURE\COBALT & A19 HOLYSTONE RBT\B WORK ACTIVITIES\1 DRAWINGS\WORKING\DELIVERY\HPV - PAVEMENTS\DRAWING\77874-CS-00- DRAWINGS\WORKING\DELIVERY\HPV ACTIVITIES\1 RBT\B WORK HOLYSTONE & A19 X:\INFRASTRUCTURE\COBALT

• ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• Key: CARRIAGEWAY CONSTRUCTION (Type P1) Excavate existing verge / footway, dispose of acceptable / unacceptable earthwork material and construct carriageway. N CARRIAGEWAY OVERLAY / RESURFACING For overlay thickness, cold milling and regulating, see Pond drawings CS-00-HPV-DR-C-0002 series. CARRIAGEWAY RECONSTRUCTION 5 Excavate and dispose of acceptable / unacceptable earthwork material. Process bituminous material and re-use as 6F2 capping. Construct carriageway.

FOOTWAY CONSTRUCTION (TYPE F1) Prepare existing surface for footway construction - excavate / overlay / re-profile.

FOOTWAY CONSTRUCTION (TYPE F?) Prepare existing surface for footway construction - excavate / overlay / re-profile. Tegular block paving.

Shaft FOOTWAY RESURFACING Excavate existing bituminous material. Process and re-use as 6F2 capping. Re-profile existing footway and resurface to new levels.

Drain HARD EXCAVATION Break-up and remove bitumen / concrete material. Process and re-use as 6F2 capping.

VERGE CONSTRUCTION Excavate existing or fill to new profile. Topsoil 150mm thick with grass seed mix. See Appendix 30/5.

Drain Carriageway narrow widening less than 1.2m refer to typical cross section drawing.

NOTES:

1. This drawing should not be scaled. All dimensions must be checked on site, and the contractor is to report any omissions or errors to the contract administrator.

2. Capping thickness is based on a CBR value of 4%. Actual CBR is to be measured on site, and capping thickness adjusted accordingly.

3. Refer to setting-out details and cross-sections for proposed feature dimensions etc.

Pond 4. Refer to Appendix 6/7 for surface treatment of formation / sub-formation.

5. Proposed carriageway make-up as Appendix 7/1 and above key.

6. Proposed footway, footway / cycleway make-up as Appendix 11/1 & above key.

7. All arisings (acceptable & unacceptable material) through excavations for carriageway and footway / cycleway construction are to be removed from site and disposed of to (licensed) tip off site.

THE SILVERLINK NORTH

Hotel 10 Rev Description Date Drwn App'd Chk'd Purpose of Issue S2 - Issued for Information

Classification Commercial in Confidence

Client North Tyneside Council SHE 1.1 to 1.5 Project A19 EMPLOYMENT ACCESS - SAFETY, HEALTH AND ENVINRONMENTAL INFORMATION

HPV-DR-C-0001 PAVEMENT.DWG HPV-DR-C-0001 by: Printed On: Deji Olaoye15/Dec/2015 At: 17:35 COBALT SEP In addition to the hazards/risks normally associated with the types of work detailed on this drawing, note the following:

CONSTRUCTION: Drawing 1.1. SITE SAFETY / SECURITY: ENSURE WORK AREAS ARE Pavement Layout SEGREGATED FROM THE GENERAL PUBLIC BY MEANS OF ROBUST PHYSICAL BARRIERS, AND THESE AREAS ARE SECURE OUTSIDE OF WORKING HOURS. Sheet 5 of 5 1.2. THE OVERALL NUMBER OF WORK AREAS ARE TO BE KEPT TO A MINIMUM. ENSURE DEFINED EGRESS AND ACCESS ROUTES FOR CONSTRUCTION VEHICLES. Scale at A1 Drawn Checked Approved

1.3. CONSTRUCTION WORKS IN THE VICINITY OF THE 1:500 MI - - GENERAL PUBLIC, AND MOVING PUBLIC SERVICE Project No. Date Silverlink ParkVEHICLES. 1.4. SHALLOW / UNCHARTED PUBLIC UTILITY APPARATUS CS077874 10-SEP-15 IN AREAS OF EXCAVATION. Drawing Identifier 1.5. TRAFFIC MANAGEMENT: PEDESTRIANS AND Project - Originator - Zone - Level - File Type - Role - Number Revision CYCLISTS ENTERING SEGREGATED AREAS OF THE 77874-CS-00-HPV-DR-C-1005 P01.1 WORKS. CONSIDER ROPING BETWEEN CONES OR PLACING RAILWAY SLEEPERS BETWEEN CONES.

SAFETY, HEALTH AND ENVIRONMENTAL INFORMATION Refer to the relevant Construction (Design and Management) documentation where applicable. Property and Infrastructure It is assumed that all works on this drawing will be carried out by a competent The Quadrant, The Silverlink North, Cobalt Business Park, contractor, working where appropriate to approved method statements and North Tyneside NE27 0BY - 0191 643 4819 risk assessments. www.capitaproperty.co.uk Capita Property and Infrastructure Ltd. X:\INFRASTRUCTURE\COBALT & A19 HOLYSTONE RBT\B WORK ACTIVITIES\1 DRAWINGS\WORKING\DELIVERY\HPV - PAVEMENTS\DRAWING\77874-CS-00- DRAWINGS\WORKING\DELIVERY\HPV ACTIVITIES\1 RBT\B WORK HOLYSTONE & A19 X:\INFRASTRUCTURE\COBALT

• ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••ER WAY ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

$SSHQGL[%&RVW(VWLPDWHV

 $(PSOR\PHQW$FFHVV&REDOW6(3

(VWLPDWHG&RVWV

&RQWUDFW:RUNV&RVW  6WDII3UHOLPLQDULHV2+ 3  5LVN$OORZDQFH  (VWLPDWHG7RWDO&RQWUDFW:RUNV&RVW 

2WKHU&RVWV 6XE7RWDO  )HHV 6XE7RWDO)HHV 

727$/%$6('2135,&(6  $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

$SSHQGL[&6WDNHKROGHU(QJDJHPHQW 6WUDWHJ\

  &RPPHUFLDOLQ&RQILGHQFH





&REDOW%XVLQHVV3DUN 6WDNHKROGHU(QJDJHPHQW 6WUDWHJ\  0D\



 &REDOW%XVLQHVV &RPPHUFLDOLQ&RQILGHQFH  3DUN2%&± 4XDOLW\0DQDJHPHQW 6WDNHKROGHU (QJDJHPHQW 6WUDWHJ\     

4XDOLW\0DQDJHPHQW  -RE1R &6

3URMHFW &REDOW%XVLQHVV3DUN0DMRU6FKHPH

/RFDWLRQ 1RUWK7\QHVLGH

7LWOH 6WDNHKROGHU(QJDJHPHQW6WUDWHJ\

,VVXH 'RFXPHQW5HI  'UDIW 5HYLVLRQ

3?7UDQVSRUWVFKHPHV?1257+7<1(6,'(3$571(56+,3?&REDOW )LOHUHIHUHQFH %XVLQHVV3DUN2%&?5HSRUW?6WDNHKROGHU(QJDJHPHQW

'DWH 1RYHPEHU

6LJQDWXUH 3UHSDUHGE\ &7KRPSVRQ  IRUILOH 

6LJQDWXUH &KHFNHGE\ 6&ODUNH  IRUILOH 

6LJQDWXUH $XWKRULVHGE\ 6&ODUNH  IRUILOH   

   

 &REDOW%XVLQHVV &RPPHUFLDOLQ&RQILGHQFH  3DUN2%&± &RQWHQWV 6WDNHKROGHU (QJDJHPHQW 6WUDWHJ\ 

&RQWHQWV  ,QWURGXFWLRQ   %DFNJURXQG   6WDNHKROGHU(QJDJHPHQW6WUDWHJ\   6FRSLQJ3URFHVV   3XUSRVH    .H\&RQVLGHUDWLRQV   6WDNHKROGHU,GHQWLILFDWLRQ   ,QWURGXFWLRQ    6WDNHKROGHUVOLVW   (QJDJHPHQW3ODQ (UURU%RRNPDUNQRWGHILQHG  ,QWURGXFWLRQ    (QJDJHPHQW7HDP   (QJDJHPHQW0HWKRGV   (QJDJHPHQW3ODQ   

L &REDOW%XVLQHVV &RPPHUFLDOLQ&RQILGHQFH  3DUN2%&± ,QWURGXFWLRQ 6WDNHKROGHU (QJDJHPHQW 6WUDWHJ\ 

 ,QWURGXFWLRQ

 %DFNJURXQG

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

 &REDOW%XVLQHVV &RPPHUFLDOLQ&RQILGHQFH  3DUN2%&± ,QWURGXFWLRQ 6WDNHKROGHU (QJDJHPHQW 6WUDWHJ\ 

&XUUHQWO\WKHUHDUHDSSUR[LPDWHO\SDUNLQJVSDFHVZLWKLQ&REDOW%XVLQHVV3DUNDVVRFLDWHG ZLWKWKRVHEXLOGLQJVWKDWDUHFXUUHQWO\RFFXSLHG3DUNLQJ6WDQGDUGVDSSOLHGWRWKH&REDOW/(= LQLWLDOO\ DOORFDWHG D UDWLR RI  VSDFH SHU Pð *)$ IRU % RIILFH GHYHORSPHQWV ZKLFK ZDV VXEVHTXHQWO\ UHOD[HG WR D UDWLR RI  VSDFH SHU Pð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x 5RXWH±$1HZ

6WDNHKROGHU HQJDJHPHQW LV LPSHUDWLYH DV DPHDQV WR LPSURYH FRPPXQLFDWLRQV REWDLQ ZLGHU FRPPXQLW\VXSSRUWDQGEX\LQIRUWKHSURSRVDOVWRJDWKHUXVHIXOGDWDDQGLGHDVDQGXOWLPDWHO\ WR LQIRUP WKH GHYHORSPHQW RI WKH VFKHPH IURP GHVLJQ WR FRQVWUXFWLRQ DQG SRVW FRPSOHWLRQ UHYLHZ 

 &REDOW%XVLQHVV &RPPHUFLDOLQ&RQILGHQFH  3DUN2%&± ,QWURGXFWLRQ 6WDNHKROGHU (QJDJHPHQW 6WUDWHJ\ 

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

 &REDOW%XVLQHVV &RPPHUFLDOLQ&RQILGHQFH  3DUN2%&± 6FRSLQJ3URFHVV 6WDNHKROGHU (QJDJHPHQW 6WUDWHJ\ 

 6FRSLQJ3URFHVV

 3XUSRVH

'HILQLQJ WKH SXUSRVH RU UHDVRQ ZK\ VWDNHKROGHU HQJDJHPHQW LV UHTXLUHG LV LPSRUWDQW LQ GHWHUPLQLQJWKHSURFHVVWREHXQGHUWDNHQ  5HDVRQVIRUHQJDJLQJZLWKVWDNHKROGHUVDUH  x WRKDUQHVVLQWHUHVWHGSDUWLHVHQHUJLHVDQGUHVRXUFHV x WRH[SORUHLVVXHVDQGFRPHXSZLWKIUHVKLGHDV x WRQHWZRUNVKDUHLGHDVDQGEHVWSUDFWLFH x WRDVVLVWGHFLVLRQPDNLQJ xWRLQIRUP x WRXQGHUVWDQGORFDOQHHGVDQGZDQWV x WRHQFRXUDJHORFDOEX\LQDQGRZQHUVKLSRIWKHSURMHFW x WRDFKLHYHDVXVWDLQDEOHRYHUDOOVFKHPHIRUWKHORQJWHUP x WREHWWHUXQGHUVWDQGDQGPRQLWRUFRPPXQLW\SHUFHSWLRQVDQG x WRHVWDEOLVKPRUHRSHQFRPPXQLFDWLRQFKDQQHOVEUHDNGRZQEDUULHUVDQGJDLQWUXVW  7KHRYHUDOODLPRIWKHVWDNHKROGHUHQJDJHPHQWSURFHVVLVWRGHWHUPLQHVWDNHKROGHUV¶YLHZVRQ WKH UHGHYHORSPHQW DQG WR IHHG ORFDO LQIRUPDWLRQ LQWR WKH VFKHPH IURP GHVLJQ WR SRVW FRQVWUXFWLRQUHYLHZ  &RQVXOWDWLRQZLOOFRYHUDOOSKDVHVRIWKHVFKHPHIURPGHVLJQWKURXJKDOOSKDVHVRIFRQVWUXFWLRQ WRSRVWHYDOXDWLRQRQFRPSOHWLRQRIWKHSURMHFW   .H\&RQVLGHUDWLRQV

7KHUHDUHDQXPEHURINH\VFKHPHVSHFLILFLVVXHVZKLFKKDYHEHHQLGHQWLILHGDQGZLOOQHHGWR EHFRQVLGHUHGLQGHWDLOWKURXJKRXWWKHHQJDJHPHQWVWDJHV  x &REDOW%XVLQHVV3DUNLVVXUURXQGHGE\PDMRUWUDQVSRUWURXWHVLQ1RUWK7\QHVLGHDQGDV VXFK WKH FRQVWUXFWLRQV RI WKH SURSRVDOV DUH OLNHO\ WR FDXVH ORFDO GLVUXSWLRQ RQ WKH RSHUDWLRQ RI WKH KLJKZD\ QHWZRUN  7KH VWUDWHJ\ ZLOO WKHUHIRUH QHHG WR SURYLGH FOHDU JXLGDQFHRQSURYLGLQJLQIRUPDWLRQWRWKHQHWZRUNXVHUVZKHQGLVUXSWLRQZLOORFFXUDQG DOWHUQDWLYHURXWLQJLIUHTXLUHGSULRUWRDQGGXULQJWKHFRQVWUXFWLRQSKDVHVDQG  x 7KH VFKHPH VHHNV WR DFKLHYH EHQHILWV IRU DOO XVHUV LW LV NH\ WKHUHIRUH WKDW UHSUHVHQWDWLYHV DOO NH\ XVHU JURXSV DUH HQJDJHG LH F\FOLVWV SHGHVWULDQV DQG SXEOLF WUDQVSRUWXVHUV   

 &REDOW%XVLQHVV &RPPHUFLDOLQ&RQILGHQFH  3DUN2%&± 6WDNHKROGHU,GHQWLILFDWLRQ 6WDNHKROGHU (QJDJHPHQW 6WUDWHJ\ 

 6WDNHKROGHU,GHQWLILFDWLRQ

  ,QWURGXFWLRQ

,GHQWLI\LQJ ZKR VKRXOG EH LQYROYHGFRQVXOWHG LQ WKH HQJDJHPHQW SURFHVV LV DQ LPSRUWDQW FRQVLGHUDWLRQLQFDUU\LQJRXWVWDNHKROGHUHQJDJHPHQW)LQGLQJWKHULJKWPL[RISDUWLFLSDQWVDQG HQVXULQJ WKDW QR JURXS LV LQDGYHUWHQWO\ H[FOXGHG LV HVVHQWLDO WR SURYLGLQJ OHJLWLPDF\ DQG FUHGLELOLW\WRWKHHQJDJHPHQWSURFHVV   $VWKHDLPLVWREHLQFOXVLYHDQGRSHQWRZKRHYHUZDQWVWREHLQYROYHGLWLVSURSRVHGWRLGHQWLI\ DQLQLWLDOOLVWRIVWDNHKROGHUVZKLFKPD\EHH[WHQGHGWKURXJKWKHOLIHRIWKHSURMHFWDVWKHSURMHFW HYROYHV   6WDNHKROGHUVOLVW

6WDNHKROGHUV KDYH EHHQ LGHQWLILHG WKURXJK GLVFXVVLRQV EHWZHHQ WKH 1RUWK 7\QHVLGH &RXQFLO DQG RXU WHFKQLFDO SDUWQHUV $ IXOO OLVW RI VWDNHKROGHUV LV VKRZQ LQ WKH WDEOH EHORZ 7KH NH\ VWDNHKROGHUJURXSVLQFOXGH  x /RFDO&RXQFLOORUVZKRZLOOEHFRQVXOWHGWKURXJKRXWWKHOLIHRIWKHSURMHFWIURPGHVLJQWR SRVWFRPSOHWLRQ x .H\ LQWHUQDO GHSDUWPHQWV ZLWKLQ 1RUWK 7\QHVLGH &RXQFLO LQFOXGLQJ 1HWZRUN 0DQDJHPHQW1HWZRUN2SHUDWLRQV&\FOLQJ3ODQQLQJDQG/HJDO6HUYLFHV x +LJKZD\V(QJODQGZKRDUHUHVSRQVLEOHIRUWKH$ZKLFKIRUPVWKHZHVWHUQERXQGDU\ RI &REDOW %XVLQHVV 3DUN DQG SURYLGHV D ODUJH YROXPH RI WKH WULSV WR&REDOW %XVLQHVV 3DUN x 1RUWKXPEHUODQG &RXQW\ &RXQFLO DV QHLJKERXULQJ KLJKZD\ DXWKRULW\ ZKRVH QHWZRUN SURYLGHVDODUJHYROXPHRIWKHWULSVWR&REDOW%XVLQHVV3DUN x 7\QH :HDU870&WRHQVXUHDQ\WHFKQRORJLHVLQWURGXFHGDUH870&FRPSOLDQW x /RFDOEXVRSHUDWRUVZKRVHLQWHUHVWLVWRPDLQWDLQDFFHVVLELOLW\E\EXVLQWKHDUHDDQG PLQLPLVHGHOD\VWRWKHLUVHUYLFHV x 1H[XVZKRDVWKH7\QHDQG:HDU3DVVHQJHU7UDQVSRUW([HFXWLYHZKRKDYHDYHVWHG LQWHUHVW LQ WKH RSHUDWLRQ RI WKH SXEOLF WUDQVSRUW QHWZRUN DQG LPSURYLQJ XVDJH RI 1RUWKXPEHUODQG3DUN0HWUR6WDWLRQ x /RFDO EXVLQHVVHV ZKRVHLQWHUHVWV DUH OLNHO\ WREHPLQLPLVLQJ GHOD\V DQG PDLQWDLQLQJ DQGLPSURYLQJDFFHVVLELOLW\E\DOOPRGHVRIWUDQVSRUWIRUMRXUQH\VWRDQGIURPWKHLUVLWHV x 8WLOLWLHV DQG VWDWXWRU\ FRQVXOWHHV LQFOXGLQJ HPHUJHQF\ VHUYLFHV ZKR ZLOO EH FRQVXOWHG WKURXJKWKH&RXQFLOV¶FRQVXOWDWLRQSURFHGXUHEXWZLOODOVRSURYLGHLQIRUPDWLRQ x /RFDOUHVLGHQWVDQGUHVLGHQWVJURXSVDQGLQVWLWXWLRQVVXFKDVVFKRROVDQG x /RFDOIRFXVJURXSVVXFKDVF\FOHIRUXPVDQGGLVDELOLW\IRUXPVWKDWZLOOKDYHDVSHFLDOLVW LQWHUHVWLQWKHSURSRVDOV   ,Q RUGHU WR EHVW LQFOXGH VWDNHKROGHUV OHYHOV RI SHUFHLYHG LQWHUHVW LQ WKH VFKHPH DQG WKHLU SRWHQWLDOLPSRUWDQFHDQGLQIOXHQFHRQWKHSURSRVDOVKDYHEHHQFDWHJRULVHGLQWRIRXUFDWHJRULHV DVIROORZV

 &REDOW%XVLQHVV &RPPHUFLDOLQ&RQILGHQFH  3DUN2%&± 6WDNHKROGHU,GHQWLILFDWLRQ 6WDNHKROGHU (QJDJHPHQW 6WUDWHJ\ 

 x 3DUWQHU6WDNHKROGHUVZHQHHGWRZRUNLQSDUWQHUVKLSZLWKDQGIRFXVPRVWHIIRUWRQ x ,QYROYH6WDNHKROGHUVZKRQHHGWREHDFWLYHO\LQYROYHGLQDQGVXSSRUWLYHRIRXUZRUN x ,QIRUP6WDNHKROGHUVZKRQHHGWREHDZDUHRIRXUZRUNDQGNHSWLQIRUPHGRIWKHPDLQ GHYHORSPHQWV x &RQVLGHU6WDNHKROGHUVZHQHHGWRFRQVLGHUIRUSDUWLFXODUSKDVHVRIRXUZRUN  7KHIROORZLQJVWDNHKROGHUVOLVWLVLGHQWLILHG  &DWHJRU\ &KDQQHOV 3DUWQHU  1RUWK7\QHVLGH&RXQFLO  x 1HWZRUN0DQDJHPHQW ‡'LUHFWFRPPXQLFDWLRQVHJSKRQHHPDLOOHWWHU (&, x ‡PHHWLQJV x &\FOLQJ2IILFHU  x 3ODQQLQJ x/HJDO6HUYLFHV x (OHFWHG0HPEHUV  ,QYROYH  1RUWKXPEHUODQG&RXQW\&RXQFLO  +LJKZD\V(QJODQG ‡PHHWLQJV ZKHUHQHFHVVDU\  6WDJHFRDFK )RFXV*URXSV $UULYD ‡ *R1RUWK(DVW ‡6WDNHKROGHUZRUNVKRS 1H[XV ‡6WDNHKROGHUHPDLOOLVW &\FOH)RUXPV ‡6WDWXWRU\FRQVXOWDWLRQ 6XVWUDQV  &\FOH7RXULQJ&OXE  'LVDELOLW\)RUXPV 7D[LDVVRFLDWLRQV /RFDOEXVLQHVVHV /RFDOUHVLGHQWV /RFDOVFKRROV /LYLQJ6WUHHWV  ,QIRUP  (PHUJHQF\6HUYLFHV  x 1RUWKXPEULD3ROLFH ‡6WDNHKROGHUZRUNVKRS x 1RUWK(DVW$PEXODQFH6HUYLFH ‡6WDNHKROGHUHPDLOOLVW x 7\QHDQG:HDU)LUH$XWKRULW\ 5DNH/DQH+RVSLWDO ‡6WDWXWRU\FRQVXOWDWLRQ 3XEOLF8WLOLWLHV ‡3XEOLF8WLOLW\,QTXLU\SURFHGXUH 3ULQFLSDO'HVLJQHU ‡&'0&HQJDJHPHQW   &RQVLGHU  :LGHUSXEOLF ‡0HGLDDQGZHEVLWHV ‡*DWHZD\VLJQLQJ±DGYDQFHGQRWLILFDWLRQ

 &REDOW%XVLQHVV &RPPHUFLDOLQ&RQILGHQFH  3DUN2%&± (QJDJHPHQW3ODQ 6WDNHKROGHU (QJDJHPHQW 6WUDWHJ\ 

 (QJDJHPHQW3ODQ

 ,QWURGXFWLRQ

$GHWDLOHGHQJDJHPHQWSODQSURYLGHVWKHSODQQLQJIUDPHZRUNIRUWKHSDUWLFLSDWRU\SURFHVV7KLV VWDJHFRQVLGHUVGHFLVLRQVDERXWWLPLQJDQGWHFKQLTXHVWREHXVHG  $V WKH HQJDJHPHQW SODQ FRYHUV WKH OLIH RI WKH VFKHPH IURP GHVLJQ WKRXJK WKH FRQVWUXFWLRQ SKDVHVWRSRVWFRQVWUXFWLRQUHYLHZLWLV LQWHQGHGWKDWWKHSODQEHD OLYHGRFXPHQW ZKLFK ZLOO HYROYHWKURXJKWKHOLIHRIWKHSURMHFW,QRUGHUWRIDFLOLWDWHWKLVLWLVHVVHQWLDOWKDWDQRZQHURIWKH SODQZLWKDGHGLFDWHGHQJDJHPHQWWHDPWRGHOLYHUWKHVWUDWHJ\LVLGHQWLILHGWKURXJKHDFKRIWKH NH\SURMHFWVWDJHVRI'HVLJQ&RQVWUXFWLRQDQG3RVW&RPSOHWLRQ(YDOXDWLRQ7RWUDFNSURJUHVV DQG FKDQJH WKURXJKRXW WKH OLIH RI WKH SURMHFW D VWDNHKROGHU HQJDJHPHQW UHJLVWHU ZLOO EH SURGXFHGDQGXSGDWHG7KHVWDNHKROGHUUHJLVWHULVSURYLGHGLQ$SSHQGL[$   (QJDJHPHQW7HDP

$Q HQJDJHPHQW WHDP ZLOO EH HVWDEOLVKHG LQ RUGHU WR HQVXUH WKDW WKH SURFHVV LV SODQQHG DQG SURJUDPPHG LQWR SHRSOH¶V ZRUN VFKHGXOHV 7KH WHDP ZLOO DOVR JHW HDUO\ EX\LQ IURP NH\ VWDNHKROGHUV  $VDKLJKYDOXHSURMHFWRIVWUDWHJLFLPSRUWDQFHLWLVLPSRUWDQWWKDWWKHHQJDJHPHQWWHDPGULYH DQGIXHOWKHFRQVXOWDWLRQSURFHVVZKLOVWSURYLGLQJDQLQGHSHQGHQWQRQELDVHGDSSURDFK7KH WHDPZLOOVHHNWREHDVLQFOXVLYHDVSRVVLEOHVHHNLQJYLHZVDQGLGHDVIURPWKHIXOOVSHFWUXPRI VWDNHKROGHUV   (QJDJHPHQW0HWKRGV

7KHUH DUH PDQ\ GLIIHUHQW SDUWLFLSDWRU\HQJDJHPHQW WHFKQLTXHV ZKLFK FDQ EH DGRSWHG %HORZ RXWOLQHVWKHVXLWHRIHQJDJHPHQWPHWKRGVZKLFKDUHDYDLODEOHWRXVHZLWKLQWKLVSURMHFW  (PDLO

(PDLO ZLOOEHXVHGDVWKH PDLQIRUPRIFRUUHVSRQGHQFHWHFKQLTXHWRUHDFK ODUJHQXPEHUVRI VWDNHKROGHUV (PDLOV ZLOO EH XVHG LQ RUGHU WR GLVVHPLQDWH LQIRUPDWLRQ RQ GDWHV RI PHHWLQJV LQYLWHDWWHQGHHVWRZRUNVKRSVHWFDVZHOODVWDUJHWLQJVSHFLDOLQWHUHVWJURXSV

/HWWHU  7HFKQLFDO FRQVXOWDWLRQV ZLOO EH FDUULHG RXW E\ OHWWHU DFFRUGLQJ WR 1RUWK 7\QHVLGH &RXQFLO SURFHGXUHV1RWLILFDWLRQVZLOODOVREHPDGHE\OHWWHUWRUHVLGHQWVDQGORFDOEXVLQHVVHVSULRUWR SK\VLFDOZRUNVFRPPHQFLQJRQVLWH

 &REDOW%XVLQHVV &RPPHUFLDOLQ&RQILGHQFH  3DUN2%&± (QJDJHPHQW3ODQ 6WDNHKROGHU (QJDJHPHQW 6WUDWHJ\ 

8VHRIWKH0HGLDDQG:HEVLWHV  .H\ ZHEVLWHV LQFOXGLQJ 1RUWK7\QHVLGH&RXQFLO &REDOW 3DUN 0RUH &REDOW DQG 1H[XV ZLOO EH XVHGLQRUGHUWRSURYLGHJHQHUDOLQIRUPDWLRQWRWKHZLGHUSXEOLFGXULQJNH\SKDVHVRIWKHSURMHFW 7KHXVHRIORFDOUDGLRVWDWLRQVDQGVDWHOOLWHQDYLJDWLRQURXWHSODQQHUGDWDEDVHVFRXOGDOVREH XVHGWRGLVVHPLQDWHLQIRUPDWLRQRQWUDIILFPDQDJHPHQWDQGGLYHUVLRQVWKURXJKWKHFRQVWUXFWLRQ SKDVHV1HZVSDSHUQRWLILFDWLRQDQGFRYHUDJHLQWKH&RXQFLO¶VUHVLGHQWVPDJD]LQHPD\DOVREH DSSOLHGLQRUGHUWRLQIRUPWKHZLGHUSXEOLF  1RUWK7\QHVLGH&RXQFLO¶V'HPRFUDWLF3URFHVV  :KHUHWKHRSSRUWXQLW\SUHVHQWVLWVHOIZHZLOOVHHNWRHQJDJHZLWKWKHPHPEHUVWKURXJKWKH IROORZLQJ&RXQFLO)RUXPV  x &RPPXQLW\&RQYHUVDWLRQ0D\RUVOLVWHQLQJHYHQW  x /HDG0HPEHU%ULHILQJ  0HHWLQJV

0HHWLQJV ZLOO EH KHOG ZLWK NH\ VWDNHKROGHUV RQ D  EDVLV LQ RUGHU WR KDYH GHWDLOHG GLVFXVVLRQDQGKHOSPDNHGHFLVLRQV,WLVDQWLFLSDWHGWKDWWKLVDSSURDFKZLOOEHXVHGZLWKSDUWQHU VWDNHKROGHUVDQGRWKHUNH\VWDNHKROGHUVDVGHHPHGQHFHVVDU\0HHWLQJVZLOOEHUHTXLUHGDWWKH RXWVHW ZLWK ORFDO EXVLQHVVHV GLUHFWO\ DIIHFWHG E\ WKH SURSRVDOVDVZHOODVZLWKSDUWQHU VWDNHKROGHUVDQGORFDOFRXQFLOORUV,QDUUDQJLQJPHHWLQJVLWLVLPSRUWDQWWRHQVXUHWKDWWKHOLVWRI VWDNHKROGHUVLQYLWHGLVIDLUDQGGRHVQRWH[FOXGHDQ\SDUWLHV

)RFXV*URXSV  $JUHDWHUGHSWKRIXQGHUVWDQGLQJDERXWVSHFLDOLVWLQWHUHVWJURXSVSHUFHSWLRQVDQGYLHZVRQWKH SURMHFWFRXOGEHREWDLQHGWKURXJKKROGLQJIRFXVJURXSV7KHVHZLOOHQVXUHWKDWDOOSDUWLFLSDQWV IHHODEOHWRFRQWULEXWHDQGSDUWLFLSDWHLQWKHSURFHVV)RFXVJURXSVDUHOLNHO\WRLQFOXGHF\FOH IRUXPVGLVDELOLW\IRUXPVSXEOLFWUDQVSRUWRSHUDWRUVDQGORFDOEXVLQHVVHV

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

 &REDOW%XVLQHVV &RPPHUFLDOLQ&RQILGHQFH  3DUN2%&± (QJDJHPHQW3ODQ 6WDNHKROGHU (QJDJHPHQW 6WUDWHJ\ 

 6WDWXWRU\DQGIRUPDOFRQVXOWDWLRQDQGOHJDOQRWLFHV  6WDWXWRU\ FRQVXOWDWLRQ ZLOO EH FDUULHG RXW DW GHWDLOHG GHVLJQ VWDJH IROORZLQJ 1RUWK 7\QHVLGH &RXQFLOSURFHGXUHV7KLVZLOOLQFOXGHOHJDOQRWLFHVZKLFKZLOOEHGLVSOD\HGLQWKHORFDOSUHVVDQG RQVWUHHWIRUWKHVWDWXWRU\SHULRGRIGD\V3ULRUWRDQ\VWDWXWRU\FRQVXOWDWLRQZHLQWHQGWR XQGHUWDNH D IRUPDO FRQVXOWDWLRQ SURFHVV $V D SDUW RI WKH IRUPDO FRQVXOWDWLRQ GHWDLOV RI WKH VFKHPHZLOOEHDYDLODEOHRQWKH &RXQFLO¶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

7KHIROORZLQJWDEOHVKRZVWKHSURSRVHGHQJDJHPHQWSODQIRUWKHSURMHFWRXWOLQLQJNH\DFWLYLWLHV DQGGDWHV,WLVSURSRVHGWKDWWKHSODQEHGLYLGHGLQWRWKHIROORZLQJNH\SKDVHV  x 'HVLJQ  'HVLJQ)HDVLELOLW\  'HWDLOHG'HVLJQ x &RQVWUXFWLRQ x 3RVWFRQVWUXFWLRQ 

 &REDOW%XVLQHVV &RPPHUFLDOLQ&RQILGHQFH  3DUN2%&± (QJDJHPHQW3ODQ 6WDNHKROGHU (QJDJHPHQW 6WUDWHJ\ 

(YHQW 6WDNHKROGHUV 'DWH 'HVLJQ   'HVLJQIHDVLELOLW\      x 5LVN:RUNVKRS ,QWHUQDO3DUWQHUVLQF17&1HWZRUN )HEUXDU\  0DQDJHUDQG'HOLYHU\3DUWQHUV     x (QDEOLQJFRQVXOWDWLRQURXQGWDEOH 3DUWQHUVWDNHKROGHUV )HEUXDU\  .H\EXVLQHVVHV   %XVRSHUDWRUV1H[XV     x PHHWLQJV DVUHTXLUHG  &REDOW%XVLQHVV3DUN )URP-DQXDU\  &RXQFLOORUV WR0D\    x )RFXV*URXSV DVUHTXLUHG  &\FOH)RUXPV )HEUXDU\          'HWDLOHGGHVLJQ      x 3XEOLF8WLOLWLHV&,QTXLU\ 3XEOLF8WLOLWLHV 'HFHPEHU    x :RUNVKRS 3DUWQHUV,QYROYH,QIRUP )URP0D\WR   1RYHPEHU x &'0&6WDJH &'0&     x )RUPDO&RQVXOWDWLRQ 3DUWQHUV,QYROYH,QIRUP&RQVLGHU 1RYHPEHU    x ([KLELWLRQRIGHWDLOHGGHVLJQ 6WDWXWRU\FRQVXOWHHV 1RYHPEHU    x 6WDWXWRU\&RQVXOWDWLRQ :LGHUSXEOLF 1RYHPEHU        &RQVWUXFWLRQ      x 7UDIILF0DQDJHPHQWQRWLILFDWLRQYLDORFDO :LGHUSXEOLF  PHGLDDGYDQFHGYDULDEOHPHVVDJH   VLJQV     7%& x /HWWHUQRWLILFDWLRQWRUHVLGHQWVDQGORFDO /RFDOUHVLGHQWVDQGEXVLQHVVHV EXVLQHVVHVSULRUWRZRUNV    x &'0&6WDJH &'0& 

 &REDOW%XVLQHVV &RPPHUFLDOLQ&RQILGHQFH  3DUN2%&± (QJDJHPHQW3ODQ 6WDNHKROGHU (QJDJHPHQW 6WUDWHJ\ 

3RVW&RQVWUXFWLRQ      x 3RVWFRQVWUXFWLRQURXQGWDEOHUHYLHZ 3DUWQHUVWDNHKROGHUV 7%&  /RFDO&RXQFLOORUV     x &'0&6WDJH &'0&     

  &RPPHUFLDOLQ&RQILGHQFH 

 

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

&DSLWD3URSHUW\DQG,QIUDVWUXFWXUH/WG 1RUWK7\QHVLGH&RXQFLO 7KH4XDGUDQW 7KH6LOYHUOLQN1RUWK &REDOW%XVLQHVV3DUN 1RUWK7\QHVLGH1(%<   ZZZFDSLWDFRXN   &RPPHUFLDOLQ&RQILGHQFH 

 

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

&DSLWD3URSHUW\DQG,QIUDVWUXFWXUH/WG 1RUWK7\QHVLGH&RXQFLO 7KH4XDGUDQW 7KH6LOYHUOLQN1RUWK &REDOW%XVLQHVV3DUN 1RUWK7\QHVLGH1(%<   ZZZFDSLWDFRXN   &RPPHUFLDOLQ&RQILGHQFH 

 

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

&DSLWD3URSHUW\DQG,QIUDVWUXFWXUH/WG 1RUWK7\QHVLGH&RXQFLO 7KH4XDGUDQW 7KH6LOYHUOLQN1RUWK &REDOW%XVLQHVV3DUN 1RUWK7\QHVLGH1(%<   ZZZFDSLWDFRXN  $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

$SSHQGL['0RQLWRULQJDQG(YDOXDWLRQ 5HSRUW

 &RPPHUFLDOLQ&RQILGHQFH  



&REDOW%XVLQHVV3DUN 0RQLWRULQJ (YDOXDWLRQ3ODQ

1RYHPEHU 



 &REDOW%XVLQHVV3DUN   1RYHPEHU &RQWHQWV



&RQWHQWV  ,QWURGXFWLRQ   %DFNJURXQG   0RQLWRULQJ (YDOXDWLRQ([SHFWDWLRQV   6FKHPH%DFNJURXQGDQG&RQWH[W   7KH3UREOHPV,GHQWLILHG -XVWLILFDWLRQIRUWKH6FKHPH   6FKHPH'HVFULSWLRQ   &RVWV    'HOLYHU\7LPHIUDPH   6FKHPH2EMHFWLYHVDQG2XWFRPHV   6FKHPH2EMHFWLYHV   3UHGLFWHG2XWFRPHV ,PSDFWV   /RJLF0DS    9DOXHIRU0RQH\   'DWD5HTXLUHPHQWV   0HDVXUHV'DWD5HTXLUHPHQWV   'DWD&ROOHFWLRQ0HWKRGV   $VVXPSWLRQV6SDWLDO&RYHUDJH )UHTXHQF\RI'DWD&ROOHFWLRQ   5HVRXUFLQJ   0RQLWRULQJ (YDOXDWLRQ%XGJHWV   'HOLYHU\3ODQ   3URMHFW3ODQ   7LPHIUDPHIRU'DWD&ROOHFWLRQ (UURU%RRNPDUNQRWGHILQHG  3URJUHVV5HSRUWLQJ   0RQLWRULQJ (YDOXDWLRQ)LQGLQJV   'LVVHPLQDWLRQ3ODQ   &RPPXQLFDWLRQZLWK.H\6WDNHKROGHUV   /HVVRQV'LVVHPLQDWHG    )LJXUHV 1RWDEOHRIILJXUHVHQWULHVIRXQG 7DEOHV 1RWDEOHRIILJXUHVHQWULHVIRXQG  $SSHQGLFHV $SSHQGL[$ $SSHQGL[% 

L &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  ,QWURGXFWLRQ



 ,QWURGXFWLRQ

 %DFNJURXQG

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

 µ0RQLWRULQJDQG(YDOXDWLRQ)UDPHZRUNIRU/RFDO$XWKRULW\0DMRU6FKHPHV¶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±µ0RQLWRULQJDQG(YDOXDWLRQ 3ODQ¶RIWKHIUDPHZRUN   )RUWKHSXUSRVHVRIORJLFPDSSLQJWRROVSULQFLSOHVRXWOLQHGLQµ/RJLF0DSSLQJ+LQWV  7LSV IRU %HWWHU 7UDQVSRUW (YDOXDWLRQV¶ E\ WKH 7DYLVWRFN ,QVWLWXWH 2FWREHU   KDV EHHQXVHG  

 &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  6FKHPH%DFNJURXQGDQG&RQWH[W



 6FKHPH%DFNJURXQGDQG&RQWH[W

 7KH3UREOHPV,GHQWLILHG -XVWLILFDWLRQIRUWKH6FKHPH

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

 &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  6FKHPH%DFNJURXQGDQG&RQWH[W



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ð *)$ IRU % RIILFH GHYHORSPHQWV ZKLFK ZDV VXEVHTXHQWO\ UHOD[HG WR D UDWLR RI  VSDFH SHU Pð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±$1HZ

 &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  6FKHPH%DFNJURXQGDQG&RQWH[W



 7KLV URXWH XWLOLVHV WKH $ EHWZHHQ WKH $ +RO\VWRQH ,QWHUFKDQJH DQG 3DUN /DQH MXQFWLRQLQ6KLUHPRRU7KHURXWHSURYLGHVDWZRODQHFDUULDJHZD\DSSURDFKIRULQERXQG WUDIILF EXW RQO\ D VLQJOH ODQH IRU RXWERXQG 7KH $ +RO\VWRQH ,QWHUFKDQJH DOUHDG\ VXIIHUV FRQJHVWLRQ RQ VHYHUDO DUPV GXULQJ WKH $0 DQG 30 SHDNV DQG LV VXEMHFW WR PLQRUKLJKZD\LPSURYHPHQWVDVVRFLDWHGZLWKDQHDUE\UHVLGHQWLDOGHYHORSPHQW7KH LPSURYHPHQWVZLOOIXUWKHUEHQHILWLQERXQGWUDIILFWKURXJKWKHSURYLVLRQRIDQDGGLWLRQDO ODQHRQWKH$RIIVOLSEXWZLOOSURYLGHOLWWOHRXWERXQG30UHOLHI   $GGLWLRQDOKLJKZD\FDSDFLW\LPSURYHPHQWVDUHSURSRVHGDORQJWKH$WRWKH:HVWRI WKH$+RO\VWRQH,QWHUFKDQJHZKLFKZLOODFFRPPRGDWHVLJQLILFDQWOHYHOVRISUHGLFWHG WUDIILFJURZWKLQWKHDUHD$ODUJHPDMRULW\RIWKHVHQHZUHVLGHQWLDOWULSVDUHOLNHO\WREH GHVWLQHGIRU&REDOW%XVLQHVV3DUN7KLVZLOOWKHUHIRUHSXWLQFUHDVLQJSUHVVXUHRQWKH RSHUDWLRQRIWKH$+RO\VWRQH,QWHUFKDQJHDQGLWVOLQNWRWKH$1HZ

 &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  6FKHPH%DFNJURXQGDQG&RQWH[W



3UREOHPWKHVFKHPHVHHNVWRDGGUHVV+LJKHVWSURSRUWLRQRIFDUWULSVE\DFFHVVURXWH LQWR&REDOW%XVLQHVV3DUNYLD7KH6LOYHUOLQN1RUWK   &XUUHQWO\DSSUR[LPDWHO\WZRZD\FDUWULSVDFFHVV&REDOW%XVLQHVV3DUNYLDWKH $+RO\VWRQH,QWHUFKDQJHHYHU\GD\7KLVILJXUHFRXOGGRXEOHXSRQWKHIXOOEXLOGRXW DQG RFFXSDWLRQ RI &REDOW %XVLQHVV 3DUN ZKLFK ZRXOG OHDG WR VLJQLILFDQW FRQJHVWLRQ SUREOHPVRQWKHORFDOKLJKZD\QHWZRUN    

 &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  6FKHPH%DFNJURXQGDQG&RQWH[W



 6FKHPH'HVFULSWLRQ

 $ SUHOLPLQDU\ VFKHPH KDV EHHQ GHYHORSHG WR DGGUHVV WKH LVVXHV LGHQWLILHG RQ WKH &REDOW %XVLQHVV 3DUN 7KH NH\ HOHPHQWV RI WKH &REDOW %XVLQHVV 3DUN LPSURYHPHQW VFKHPHDUHGHWDLOHGLQ7DEOHEHORZ   ,VVXH 6FKHPH2XWSXWV  x &DUULDJHZD\ GXDOOLQJ RI $ IURP $ 1HZ

 7KHGHWDLOHGFRVWEUHDNGRZQLVIRXQGZLWKLQWKHEXVLQHVVFDVHUHSRUW   

 &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  6FKHPH%DFNJURXQGDQG&RQWH[W



 'HOLYHU\7LPHIUDPH&RVW

 7DEOHEHORZVXPPDULVHVWKHGHOLYHU\WLPHIUDPHLQFOXGHGWKHSUHGLFWHGVSHQGSURILOH  0LOHVWRQH 'HOLYHU\'DWH )RUHFDVW6SHQG

)XOO%XVLQHVV&DVH 'HFHPEHU  'HYHORSHG

*DWHZD\ )HEUXDU\ 1$

&RQVWUXFWLRQ 6XSHUYLVLRQ 2FWREHU  LQFOXGLQJULVN 

0RQWK3RVW6FKHPH 2FWREHU  0RQLWRULQJ

\HDUSRVWVFKHPH 2FWREHU  LPSOHPHQWDWLRQPRQLWRULQJ

7DEOH6FKHPH'HOLYHU\7LPHIUDPH

   

 &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  6FKHPH2EMHFWLYHVDQG2XWFRPHV



 6FKHPH2EMHFWLYHVDQG2XWFRPHV

  6FKHPH2EMHFWLYHV

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

3.2.1 The predicted benefits in the form of intermediate outcomes and the longer term impacts associated with the three objectives are provided within 3.1. Table 5 below illustrates by means of a logic mapping diagram to shows how the scheme will deliver the objectives and how it will affect the local community and end-users of the highway scheme over the short to long term.  /RJLF0DS

3.3.1 Table 5 below illustrates the relationship between the scheme context, scheme inputs, outputs and the outcomes (short-medium term effects) and impacts (longer term effects) in relation to the three scheme objectives. This is illustrated by means of a logic mapping diagram.

 &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  6FKHPH2EMHFWLYHVDQG2XWFRPHV

 $QWLFLSDWHG%HQHILWV 2EMHFWLYHV 6KRUWPHGLXP7HUP2XWFRPH,QGLFDWRUV /RQJ7HUP,PSDFW,QGLFDWRUV 2EMHFWLYH  (QDEOH WKH IXOO x (FRQRPLFSRVLWLYHUHOLDELOLW\LPSDFW DQGDFFHVVLELOLW\LPSURYHPHQWIRU GHYHORSPHQW RI WKH &REDOW x (FRQRPLFSRVLWLYHUHOLDELOLW\LPSDFWDQGDFFHVVLELOLW\ EXVLQHVVXVHUVSXEOLFWUDQVSRUWXVHUV %XVLQHVV3DUNDQGFRQWULEXWHWR LPSURYHPHQWIRUEXVLQHVVXVHUVSXEOLFWUDQVSRUWXVHUV DQGFRPPXWHUVLQDUHDVZKLFK WKH FUHDWLRQ DQG UHWHQWLRQ RI DQGFRPPXWHUVIRUIXWXUHJURZWKLQWUDIILFGHPDQG FXUUHQWO\VXIIHUIURPFRQJHVWLRQ DJDLQVWD³GRQRWKLQJVFHQDULR´,PSURYHGUHOLDELOLW\RI QHZ MREV ZLWKLQ WKH 1( /(3 ,PSURYHGUHOLDELOLW\RISXEOLFWUDQVSRUW SXEOLFWUDQVSRUWFRQWULEXWHVWRPRGHVKLIWIURPFDUXVH DUHD FRQWULEXWHVWRPRGHVKLIWIURPFDU  XVH x (FRQRPLFSRVLWLYHUHOLDELOLW\LPSDFW 2EMHFWLYH  ,PSURYH SXEOLF DQGDFFHVVLELOLW\LPSURYHPHQWIRU WUDQVSRUWMRXUQH\WLPHUHOLDELOLW\ SXEOLFWUDQVSRUWXVHUVDQGFRPPXWHUV x (FRQRPLFSRVLWLYHUHOLDELOLW\LPSDFWDQGDFFHVVLELOLW\ WRIURP WKH &REDOW %XVLQHVV LQDUHDVZKLFKFXUUHQWO\VXIIHUIURP LPSURYHPHQWIRUSXEOLFWUDQVSRUWXVHUVDQG 3DUN FRQJHVWLRQ,PSURYHGUHOLDELOLW\RI   SXEOLFWUDQVSRUWFRQWULEXWHVWRPRGH VKLIWIURPFDUXVH 2EMHFWLYH5HGXFHWKHDYHUDJH x (FRQRPLFSRVLWLYHUHOLDELOLW\LPSDFWDQGDFFHVVLELOLW\ GHOD\ LQWRRXW RI WKH &REDOW LPSURYHPHQWIRUEXVLQHVVXVHUVDQGFRPPXWHUV %XVLQHVV 3DUN IURP WKH $ x (FRQRPLFSUHYHQWLQJPLQLPLVLQJ x 6RFLDO (FRQRPLFSRVLWLYHUHOLDELOLW\LPSDFWRQ FRQJHVWLRQRQDPDMRUDFFHVVURXWH FRPPXWHUVDQGHPSOR\HHVRIVXUURXQGLQJEXVLQHVVHV +RO\VWRQH ,QWHUFKDQJH ZLWKLQ  ZLOOGLUHFWO\FRQWULEXWHWRZDUGVWKH DQG PRQWKV RI WKH $ 6LOYHUOLQN PDLQWHQDQFHRIH[LVWLQJMREV x 6RFLDOLPSURYHGMRXUQH\TXDOLW\SULQFLSDOO\E\UHGXFHG VFKHPHFRPSOHWLRQ IUXVWUDWLRQDVVRFLDWHGZLWKFRQJHVWLRQDQGKLJKHUYHKLFOH  KRXUVSHUMRXUQH\ 7DEOH/RJLF0DSSLQJRI6FKHPH2EMHFWLYHV 6KRUWDQG/RQJ7HUP%HQHILW,QGLFDWRUV

 &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  6FKHPH2EMHFWLYHVDQG2XWFRPHV

  &RQWH[W7UDQVSRUW .H\,QSXWV .H\2XWSXWV 2XWFRPHV ,PSDFWV ,VVXHV           &REDOW%XVLQHVV3DUNLV PLOOLRQ x &DUULDJHZD\GXDOOLQJRI$IURP x 5HGXFWLRQLQFRQJHVWLRQDWNH\ x (FRQRPLFSRVLWLYHUHOLDELOLW\LPSDFW WKHODUJHVWRIILFHSDUNLQ 7HFKQLFDOGHVLJQ $1HZ

 &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  6FKHPH2EMHFWLYHVDQG2XWFRPHV

 FXUUHQWO\H[SHULHQFHG ZLWKLQWKHEXVLQHVVSDUN DWSHDNWLPHVWKH SRWHQWLDOIRUDOPRVW GRXEOHWKLVDPRXQWLVRI JUHDWFRQFHUQ 

7DEOH/RJLF0DSSLQJRIWKH&REDOW%XVLQHVV3DUN

 &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  6FKHPH2EMHFWLYHVDQG2XWFRPHV



 9DOXHIRU0RQH\

 $VVHVVPHQWRIWKHYDOXHIRUPRQH\ZLOOEHXQGHUWDNHQE\  x8WLOLVLQJ WKH RXWFRPH LQIRUPDWLRQ LQ WKH IRUP RI MRXUQH\ WLPH LPSURYHPHQWV DURXQGWKH&REDOW%XVLQHVV3DUNH[SUHVVHGDVDPRQHWDU\YDOXHRIMRXUQH\ WLPHFKDQJHVWKURXJKDFRPSDULVRQRIIRUHFDVWHGDQGDFWXDODQG x9DOXH IRU PRQH\ ZLOO DOVR EH SUHVHQWHG LQ WKH IRUP RI GHWDLOHG TXDOLWDWLYH DVVHVVPHQWV GHWHUPLQLQJ ZKHWKHU WKH PRQLWRULQJ GDWD FROOHFWHG VXJJHVWV DQWLFLSDWHGEHQHILWVDULVLQJIURPWKHVFKHPHKDYHEHHQDFKLHYHG  

 &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  'DWD5HTXLUHPHQWV



 'DWD5HTXLUHPHQWV

 0HDVXUHV'DWD5HTXLUHPHQWV

 7R GHWHUPLQH ZKHWKHU WKH VFKHPH REMHFWLYHV DUH EHLQJ UHDOLVHG DQG WR PRQLWRU WKH VFKHPH¶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

 &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  'DWD5HTXLUHPHQWV

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

4XDQWLWDWLYH 2XWFRPH  6FKHPHREMHFWLYHV $FFRXQWDELOLW\ %XVDQGSULYDWHYHKLFOHMRXUQH\WLPHUHOLDELOLW\URDGFROOLVLRQGDWDDQGSRVW ,PSDFW FRPSOHWLRQ3UHGLFWHGQHWZRUNGLVUXSWLRQDJDLQVWIRUHFDVWHGGHOLYHU\SURILOH

$FFRXQWDELOLW\ 4XDQWLWDWLYH 7UDYHOGHPDQG 2XWFRPH .QRZOHGJH $YHUDJHGDLO\7UDIILFIORZV %HIRUH FRQVWUXFWLRQDQG 7UDYHOWLPHVDQG $FFRXQWDELOLW\ 4XDQWLWDWLYH 2XWFRPH DQG\HDUV UHOLDELOLW\RIWUDYHOWLPHV .QRZOHGJH %XVDQGSULYDWHYHKLFOHMRXUQH\WLPHVRYHU$P 30SHDNV SRVWRSHQLQJ

$FFRXQWDELOLW\ (QYLURQPHQWDO 2XWSXW 7UDIILF1RLVHOHYHOVDWVHQVLWLYHUHFHSWRUV .QRZOHGJH

,PSDFWVRQWKH 4XDQWLWDWLYH $FFRXQWDELOLW\ HFRQRP\ UHGXFHG ,PSDFW ,PSURYHGDFFHVVIRUEXVLQHVVXVHUVSXEOLFWUDQVSRUWSURYLGHUVDQGXVHUVFRPPXWHUV .QRZOHGJH FRQJHVWLRQ  DQGHPSOR\HHVRIVXUURXQGLQJEXVLQHVVHV±MRXUQH\WLPHGDWD

 &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  'DWD5HTXLUHPHQWV

 4XDQWLWDWLYH $FFRXQWDELOLW\ &DUERQLPSDFWV ,PSDFW &KDQJHLQYHKLFOHYROXPHVFODVVLILFDWLRQVSOLWDQGDYHUDJHVSHHGVWRXVHWKH'I7 .QRZOHGJH FDUERQWRROWRPRQLWRUFKDQJHVFDUERQUHGXFWLRQIURPIRUHFDVWWRDFWXDO 7DEOH6WDQGDUG0HDVXUHV 'DWD5HTXLUHPHQWV

 &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  'DWD&ROOHFWLRQ0HWKRGV



 'DWD&ROOHFWLRQ0HWKRGV

  $VVXPSWLRQV6SDWLDO&RYHUDJH )UHTXHQF\RI'DWD&ROOHFWLRQ

 6FKHPH%XLOG 'HOLYHUHG6FKHPH   ,Q UHODWLRQ WR WKH IRXU NH\ FRPSRQHQWV RI WKH 6FKHPH %XLOG GHVLJQV IURP FRQFHSW WKURXJKIHDVLELOLW\DQGGHWDLOHGGHVLJQWR³DVEXLOW´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¶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

 &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  'DWD&ROOHFWLRQ0HWKRGV



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

 &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  'DWD&ROOHFWLRQ0HWKRGV



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

 &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  5HVRXUFLQJ



 5HVRXUFLQJ

 0RQLWRULQJ (YDOXDWLRQ%XGJHWV

 17&DQG&DSLWDZLOOEHUHVSRQVLEOHIRUWKH GHOLYHU\RI WKHPRQLWRULQJDQGHYDOXDWLRQ 6WUDWHJ\,WLVSURSRVHGWRXVHWKHH[LVWLQJ7$'8QHWZRUNRIWUDIILFFRXQWHUVWKHVHZLOO EH VXSSOHPHQWHG E\ QHZ FRXQWHUV WR HQVXUH IXOO QHWZRUN FRYHUDJHIRUWKHUHTXLUHG WUDIILF IORZV VSHHGV DQG WUDIILF FODVVLILFDWLRQ GDWD 7KH FRVW IRU PRQLWRULQJ DQG HYDOXDWLRQ ZLOO EH DOORFDWHG ZLWKLQ 17& /73 DOORFDWLRQ $ EUHDNGRZQ RI WKH EXGJHW HVWLPDWHLVGHWDLOHGLQ7DEOH   6WDJH 7DVN &RVWV  3UHFRQVWUXFWLRQ 3UH6FKHPHPRQLWRULQJGDWD  GDWDFROOHFWLRQ FROOHFWLRQ

 &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  'HOLYHU\3ODQ



 'HOLYHU\3ODQ

 3URMHFW3ODQ

 7KH SURMHFW GHOLYHU\ SODQ GLVFXVVHG LQ WKH EXVLQHVV FDVH ZLOOEHUHYLHZHGDQG DVVHVVHGDJDLQVWDFWXDOSURJUHVVXQGHUWDNHQLQWHUPVRIVFKHPHGHOLYHU\DQGXSGDWHG RQDUHJXODUEDVLV7KHSURMHFWGHOLYHU\SODQZLOOEHPHDVXUHGDJDLQVWDFWXDOGHOLYHU\ DWNH\PLOHVWRQHVDQGXVHGWRLQIRUPWKHRQH\HDUDIWHUVFKHPHRSHQLQJPRQLWRULQJ UHSRUW   3URJUHVV5HSRUWLQJ

 3UH DQG SRVW PRQLWRULQJ DQG HYDOXDWLRQ UHSRUWV ZLOO EH SURGXFHG E\ &DSLWD DQG VXEPLWWHGWRWKH17&SURMHFWERDUGIRULQWHUQDODSSURYDOZKRZLOOSXWIRUZDUGWKH2Q DSSURYDOUHSRUWVZLOOEHVXEPLWWHGWRWKH1(/(3   0RQLWRULQJ (YDOXDWLRQ)LQGLQJV

 7KHHYDOXDWLRQUHSRUWVZLOOVXPPDULVHWKHPRQLWRULQJDFWLYLWLHVFRPSOHWHGDQGHYDOXDWH WKH H[WHQW WR ZKLFK WKH VFKHPH REMHFWLYHV DUH GHOLYHULQJ WKH IRUHFDVWHG VFKHPH RXWSXWVDQGRXWFRPHV7KHUHSRUWVZLOOFRPSDUHRXWWXUQUHVXOWVZLWKVFKHPHIRUHFDVWV DQG HYDOXDWH WKH VFKHPH DJDLQVW WKH HLJKW PHDVXUHV PRQLWRUHG XQGHU WKH VWDQGDUG PRQLWRULQJIUDPHZRUN   7KHHYDOXDWLRQUHSRUWVZLOOLQFOXGHWKHIROORZLQJ  x $TXDQWLWDWLYHDQGTXDOLWDWLYHDQDO\VLVRIWKHHLJKWPHDVXUHVEHLQJPRQLWRUHG x $ TXDQWLWDWLYH DQG TXDOLWDWLYH DQDO\VLV RI WKH VFKHPH RXWFRPHV DQG LPSDFWV FRQVLVWHQWZLWKWKHVFKHPHREMHFWLYHV x ,GHQWLILFDWLRQ DQG DQDO\VLV RI DQ\ GLIIHUHQFHV EHWZHHQ IRUHFDVW DQG RXWWXUQ EHQHILWVPRQLWRUHGDQGSURYLVLRQRIUHDVRQVLIDQ\GLIIHUHQFHVDUHREVHUYHG x $QDO\VLVRIWKHYDOXHIRUPRQH\RIWKHVFKHPH x ,GHQWLILFDWLRQ RI WKH HIIHFWLYHQHVVLVVXHV DVVRFLDWHG ZLWK SUHVFULEHG GDWD FROOHFWLRQPHWKRGVDQGDVVXPSWLRQV x ,GHQWLILFDWLRQ RI DQ\ H[WHUQDO IDFWRUV ZKLFK KDYH LQIOXHQFHG WKH PRQLWRULQJ SURFHVV x 6XPPDU\RINH\LVVXHVUHODWLQJWRWKHDSSUDLVDOPHWKRGVXVHGLQWKHHYDOXDWLRQ RI WKH &REDOW %XVLQHVV 3DUN LLPSURYHPHQW VFKHPH WR DVVLVW LQ RQJRLQJ LPSURYHPHQWRIDSSUDLVDOWHFKQLTXHVDQGSURFHVVHVDQG x /HVVRQVOHDUQWWKURXJKWKHGHVLJQDQGFRQVWUXFWLRQVWDJHV   

 &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  'LVVHPLQDWLRQ3ODQ



 'LVVHPLQDWLRQ3ODQ

 &RPPXQLFDWLRQZLWK.H\6WDNHKROGHUV

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x +DUQHVVLQWHUHVWHGSDUWLHVHQHUJLHVDQGUHVRXUFHV x 1HWZRUNVKDUHLGHDVDQGEHVWSUDFWLFH x $VVLVWGHFLVLRQPDNLQJ x 8QGHUVWDQGORFDOQHHGVDQGZDQWV x (QFRXUDJHORFDOEX\LQDQGRZQHUVKLSRIWKHSURMHFW x $FKLHYHDVXVWDLQDEOHRYHUDOOVFKHPHIRUWKHORQJWHUP x 8QGHUVWDQGDQGPRQLWRUFRPPXQLW\SHUFHSWLRQVDQG x (VWDEOLVKPRUHRSHQFRPPXQLFDWLRQFKDQQHOVEUHDNGRZQEDUULHUVDQGJDLQ WUXVW   7KH 6WDNHKROGHU (QJDJHPHQW 3ODQ LV SURYLGHG ZLWKLQ WKH $SSHQGL[ RI WKH %XVLQHVV &DVH :H ZLOO PRQLWRU ZKDW LVVXHV FRPH RXW RI WKH HQJDJHPHQW SODQ IURP NH\ VWDNHKROGHUV DQG KRZ WKH FRPPHQWV LQIRUPHG WKH GHVLJQ DQG FRQVWUXFWLRQ RI WKH VFKHPH   /HVVRQV'LVVHPLQDWHG

 7KH/HVVRQV/HDUQHG/RJLVDUHSRVLWRU\RIOHVVRQVOHDUQHGGXULQJWKHSURMHFWWKDWFDQ EHGLVVHPLQDWHGIRUWKHEHQHILWRIRWKHUSURMHFWV7KHORJLVIRUPDOO\SXEOLVKHGLQWKH /HVVRQV/HDUQHG5HSRUWDWWKHFORVHRIWKHSURMHFW   7KH ORJ FRYHUV PDQDJHPHQW SURFHVVHV WRROV DQG WHFKQLTXHV DQG DVVHVVHV ZKDW ZRUNHGZHOOZKDWGLGQRWDQGZKDWVKRXOGEHDYRLGHG3URGXFLQJWKLVLQIRUPDWLRQZLOO KHOSWKHRUJDQLVDWLRQWRPDNHVDYLQJVRQIXWXUHSURMHFWFRVWVWLPHDQGUHVRXUFHV 

 &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  'LVVHPLQDWLRQ3ODQ



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

  &RPPHUFLDOLQ&RQILGHQFH 

 



&DSLWD3URSHUW\DQG,QIUDVWUXFWXUH/WG 1RUWK7\QHVLGH&RXQFLO 7KH4XDGUDQW 7KH6LOYHUOLQN1RUWK &REDOW%XVLQHVV3DUN 1RUWK7\QHVLGH1(%<   ZZZFDSLWDFRXN  $(PSOR\PHQW&RUULGRU   $FFHVV,PSURYHPHQWV 'HFHPEHU 

$SSHQGL[(/RFDO0RGHO9DOLGDWLRQ5HSRUW

 &RPPHUFLDOLQ&RQILGHQFH

 



&REDOW%XVLQHVV3DUN 9,66,00LFUR6LPXODWLRQ 0RGHO /RFDO0RGHO9DOLGDWLRQ5HSRUW 0DUFK



 &REDOW%XVLQHVV3DUN 4XDOLW\0DQDJHPHQW 9,66,00LFUR6LPXODWLRQ  0RGHO 0DUFK 

4XDOLW\0DQDJHPHQW  -RE1R &6

3URMHFW &REDOW%XVLQHVV3DUN9,66,00LFUR6LPXODWLRQ0RGHO

/RFDWLRQ 1RUWK7\QHVLGH

7LWOH /RFDO0RGHO9DOLGDWLRQ5HSRUW

'RFXPHQW5HI  ,VVXH5HYLVLRQ $

)LOHUHIHUHQFH $?7UDQVSRUWVFKHPHV?1257+7<1(6,'(3$571(56+,3?&REDOW%XVLQHVV3DUN 2%&?5HSRUW

'DWH 0DUFK

3UHSDUHGE\ )D\H6W\OHV 6LJQDWXUH IRUILOH  

&KHFNHGE\  6LJQDWXUH IRUILOH  

$XWKRULVHGE\ 6WXDUW&ODUNH 6LJQDWXUH IRUILOH    5HYLVLRQ6WDWXV+LVWRU\  5HY 'DWH ,VVXH3XUSRVH&RPPHQW 3UHSDUHG &KHFNHG $XWKRULVHG

  'UDIW/RFDO0RGHO9DOLGDWLRQ5HSRUW )6  63&

      

 &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  9,66,00LFUR6LPXODWLRQ 0RGHO &RQWHQWV 0DUFK 

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

L &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  9,66,00LFUR6LPXODWLRQ 0RGHO &RQWHQWV 0DUFK 

)LJXUH-RXUQH\WLPH5RXWHV   )LJXUH-RXUQH\7LPH5RXWHV   )LJXUH-RXUQH\7LPH5RXWHV    7DEOHV 7DEOH-XQFWLRQ7XUQLQJ&RXQWV  7DEOH$XWRPDWLF7UDIILF&RXQWV  7DEOH4XHXH/HQJWK6XUYH\V  7DEOH-RXUQH\7LPH6XUYH\V  7DEOH&DOLEUDWLRQ5HVXOWVIRUWKH$0%DVH0RGHO  7DEOH&DOLEUDWLRQ5HVXOWVIRUWKH30%DVH0RGHO  7DEOH-RXUQH\WLPH9DOLGDWLRQIRUWKH$0 30%DVH0RGHOV    $SSHQGLFHV $SSHQGL[$ 7UDIILF6XUYH\'DWD $SSHQGL[%$0 30%DVH0RGHO7UDIILF)ORZV $SSHQGL[&$0 304XHXH/HQJWK9DOLGDWLRQ 

LL &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  9,66,00LFUR6LPXODWLRQ 0RGHO ,QWURGXFWLRQ 0DUFK   ,QWURGXFWLRQ

 %DFNJURXQG

 ,Q  WKH 1RUWK (DVW /RFDO (QWHUSULVH 3DUWQHUVKLS /(3  UHJLRQ GHYHORSHG D 6WUDWHJLF (FRQRPLF 3ODQ 6(3  IRU VXEPLVVLRQ WR FHQWUDO *RYHUQPHQW IRU IXQGLQJ WR SURPRWH LQIUDVWUXFWXUHVFKHPHVZKLFKZRXOGµSXPS¶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

 &REDOW%XVLQHVV3DUNLVVLWXDWHGLQWKH9DOOH\DQG&ROOLQJZRRG:DUGVRI1RUWK7\QHVLGHDQGLV ERXQGHGE\:HVW$OORWPHQWDQG6KLUHPRRULQWKHQRUWK1HZ

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

 $PLFURVLPXODWLRQPRGHORIWKH&REDOW%XVLQHVV3DUNDQGVXUURXQGLQJURDGQHWZRUNKDVEHHQ FRQVWUXFWHGWRDVVHVVWKHLPSDFWRIYDULRXVFDSDFLW\HQKDQFLQJKLJKZD\LPSURYHPHQWVWRFDWHU IRUH[LVWLQJDQGIXWXUHWUDYHOGHPDQGJHQHUDWHGE\&REDOW  7KHLPSURYHPHQWVFRQVLVWRIWKHIROORZLQJ $+RO\VWRQH,QWHUFKDQJH

x 3URYLVLRQ RI IRXU ODQHV RQ WKH HDVWHUQ FLUFXODWRU\ FDUULDJHZD\DQGILYHODQHVRQWKH ZHVWHUQFLUFXODWRU\FDUULDJHZD\RIWKH$+RO\VWRQH,QWHUFKDQJHURXQGDERXW

x &UHDWLRQ RI D WKLUG ODQH DSSUR[LPDWHO\ P ORQJ RQ WKH $ DSSURDFK WR WKH $ +RO\VWRQH,QWHUFKDQJH

x &RQVWUXFWLRQRIDWKLUGODQHDSSUR[LPDWHO\PORQJRQWKH$DSSURDFKWRWKH$ +RO\VWRQH,QWHUFKDQJH

x 3URYLGLQJDWKLUGODQHDSSUR[LPDWHO\PORQJRQWKH$VRXWKERXQGH[LWVOLSRQWRWKH $+RO\VWRQH,QWHUFKDQJH

x &UHDWLQJDWKLUGODQHDSSUR[LPDWHO\PORQJRQWKH$+RO\VWRQH:D\DSSURDFKWR WKH$+RO\VWRQH,QWHUFKDQJHDQG

x &RQVWUXFWLQJDWKLUGODQHDSSUR[LPDWHO\PORQJRQWKH$QRUWKERXQGH[LWVOLSRQWR WKH$+RO\VWRQH,QWHUFKDQJH $

x &RQVWUXFWLRQRIDQDGGLWLRQDOZHVWERXQGFDUULDJHZD\RQWKH$1HZ

x $WWKH$%HQWRQ5RDGMXQFWLRQULJKWWXUQPRYHPHQWVIURP%HQWRQ5RDGWR$ ZLOO QRW EH SHUPLWWHG DQG WKH H[LVWLQJ ULJKW WXUQ SRFNHW IRU PRYHPHQWV IURP $ WR %HQWRQ5RDGZLOOEHH[WHQGHGWRPLQOHQJWK $1HZ

  &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  9,66,00LFUR6LPXODWLRQ 0RGHO ,QWURGXFWLRQ 0DUFK  x 7KH ZHVWERXQG $ 1HZ

x 7KH FLUFXODWRU\ FDUULDJHZD\ RQ WKH $ 1HZ

x 7KHH[LVWLQJSHGHVWULDQUHIXJHRQ%1HZ

x 7KHH[LVWLQJEXVVWRSRQWKHHDVWERXQGFDUULDJHZD\RI$1HZ

x 1HZURDGPDUNLQJVZLOOEHSURYLGHGRQWKHWZRODQH$1HZ

x &RQVWUXFWLRQ RI DQ DGGLWLRQDO ZHVWERXQG FDUULDJHZD\ EHWZHHQ WKH $ 1HZ

x &UHDWLRQ RI DQ DGGLWLRQDO VRXWKERXQG FDUULDJHZD\ RQ 7KH 6LOYHUOLQN 1RUWK IURP WKH MXQFWLRQZLWK$1HZ

x %DQQLQJWKHH[LVWLQJULJKWWXUQIURP4XLFN6LOYHU:D\RQWR7KH6LOYHUOLQN1RUWK

x 2SHQLQJ RI WKH EXV JDWH RQ 4XLFN 6LOYHU :D\ WR DOO YHKLFOHV H[FHSW +HDY\ *RRGV 9HKLFOHVLQERWKQRUWKERXQGDQGVRXWKERXQGGLUHFWLRQVDQG

x 5HORFDWLRQ RI WKH H[LVWLQJ EXV VWRS VLWXDWHG RQ WKH VRXWKERXQGFDUULDJHZD\RI7KH 6LOYHUOLQN1RUWKWRDSSUR[LPDWHO\PVRXWKRIWKHFXUUHQWORFDWLRQ

  5HSRUW6FRSH 6WUXFWXUH

 7KLV /RFDO 0RGHO 9DOLGDWLRQ 5HSRUW /095  GHVFULEHV WKH VWHSV WDNHQ WR GHYHORS D PLFUR VLPXODWLRQPRGHOIRU&REDOW%XVLQHVV3DUNWKDWZLOOEHXVHGWRDVVHVVH[LVWLQJFRQJHVWHGWUDIILF FRQGLWLRQVJHQHUDWHGE\WKHSDUNDQWLFLSDWHGIXWXUHWUDIILFJURZWKDQGWKHHIIHFWLYHQHVVRIWKH &REDOW KLJKZD\ LQIUDVWUXFWXUH LPSURYHPHQW VFKHPH  7KH /095 LQFOXGHV WKH IROORZLQJ FKDSWHUV

x 7UDIILF0RGHO5HTXLUHPHQWV

x 9LVVLP2YHUYLHZ

x %DVH0RGHO'HYHORSPHQW

x %DVH0RGHO&DOLEUDWLRQ

x %DVH0RGHO9DOLGDWLRQDQG

x &RQFOXVLRQV

  &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  9,66,00LFUR6LPXODWLRQ 0RGHO 7UDIILF0RGHO5HTXLUHPHQWV 0DUFK   7UDIILF0RGHO5HTXLUHPHQWV

 0RGHOOLQJ5HTXLUHPHQWV

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

 $9LVVLPPRGHOKDVFRQVHTXHQWO\EHHQGHYHORSHGZKLFKSURYLGHVRXWSXWVRIWULSWRWDOMRXUQH\ WLPHDQGTXHXHOHQJWKVWRGHPRQVWUDWHKLJKZD\SHUIRUPDQFHDVZHOODVFRVWPDWULFHVIRUXVH LQWKHHFRQRPLFDSSUDLVDORIWKHVFKHPH  7KH PRGHO KDV EHHQ GHYHORSHG IRU DQ DYHUDJH  ZHHNGD\ FRYHULQJ WKH µEXVLHVW¶ WLPH SHULRGV FROOHFWLYHO\ DFURVV WKH KLJKZD\ QHWZRUN GXULQJ WKH PRUQLQJ DQG HYHQLQJ FRPPXWHU SHDNV7KH9LVVLPPRGHOVLPXODWLRQSHULRGVLQFOXGHWKHIROORZLQJ

x $03HDN3HULRGRIDQG

x 303HDN3HULRGRI  7KH $0 DQG 30 9LVVLP PRGHOV GHPRQVWUDWH YDULRXV URXWH FKRLFH IRU DFFHVV LQ DQG RXW RI &REDOW%XVLQHVV3DUNDQGLQFOXGHVLJQLILFDQWLQWHUDFWLRQEHWZHHQDOUHDG\FRQJHVWHGMXQFWLRQV 7KH DUHD RI WKH URDG QHWZRUN WKDW KDV EHHQ PRGHOOHG WRDVVHVV H[LVWLQJ WUDIILF IXWXUHWUDIILF DQGWKH&REDOWKLJKZD\LQIUDVWUXFWXUHLPSURYHPHQWVFKHPHLVVKRZQLQ)LJXUH

  &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  9,66,00LFUR6LPXODWLRQ 0RGHO 7UDIILF0RGHO5HTXLUHPHQWV 0DUFK  )LJXUH0RGHO([WHQW&REDOW9LVVLP0RGHO

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

 7KHEHQHILWRIGHYHORSLQJDPLFURVLPXODWLRQPRGHOLQ9LVVLPLVWKDWLWHQDEOHVLGHQWLILFDWLRQRI SUREOHPDUHDVRQWKHKLJKZD\QHWZRUNDVZHOODVWKHSRVLWLYHLPSDFWVDVVRFLDWHGZLWKKLJKZD\ PRGLILFDWLRQV DW LQGLYLGXDO MXQFWLRQV DQG WKH LPSDFWV RI WKHVH DFURVV WKH ZLGHU PRGHOOHG QHWZRUN  ,QUHODWLRQWRXVLQJ9LVVLPDVDWUDQVSRUWPRGHOOLQJWRROWKHPDLQVWUHQJWKVDQGZHDNQHVVHVRI WKHVRIWZDUHLQFOXGHWKHIROORZLQJ 6WUHQJWKV

x 0RGHOVWKHEHKDYLRXURIHDFKLQGLYLGXDOYHKLFOHRQWKHQHWZRUN

x 9LVXDO WRRO FDQ VKRZ UHDOLVWLF WUDIILF EHKDYLRXU ZLWK EXLOG XS RI TXHXHV RYHU WKH PRGHOOHGSHULRGV

x &DQUHDOLVWLFDOO\DVVHVVEHKDYLRXUDWQRQVWDQGDUGMXQFWLRQV

x &DQPRGHOZHDYLQJDQGPHUJLQJDFFXUDWHO\

x 3URYLGHV GHWDLOHG RXWSXW FDQ GLVDJJUHJDWH E\ YHKLFOH W\SH YDU\ IORZ DUULYDO UDWHV UHFRUGGHWDLOHGTXHXHVDQGMRXUQH\WLPHVHWF

x 7KH LQWHUIDFH EHWZHHQ 9LVVLP DQG 3&029$  VRIWZDUH HQDEOHV WUDIILF VLJQDO MXQFWLRQV LQ WKH 9LVVLP PRGHO WR UHSOLFDWH WKH RSHUDWLRQ RI 029$ 0LFURSURFHVVRU 2SWLPLVHG 9HKLFOH $FWXDWLRQ  VLJQDO FRQWURO RQVWUHHW DQG WKHUHIRUH PRGHO WUDIILF IORZVWKURXJKVLJQDOMXQFWLRQVDVWKH\KDSSHQLQUHDOLW\DQG

x 9,66,0KDVWKHEHQHILWRIEHLQJDEOHWRFRPELQHGHWDLOHGWUDIILFPRGHOOLQJZLWKVWDWH RI WKH DUW SUHVHQWDWLRQ DQG ' YLVXDOLVDWLRQ ZKLFK LV SDUWLFXODUO\ EHQHILFLDO DV LW HQDEOHV D XQLTXH RSSRUWXQLW\ WR HQJDJH DQG LQWHJUDWH WKH SXEOLFDQGNH\ VWDNHKROGHUVLQWRWKHGHFLVLRQPDNLQJSURFHVVWKURXJKSUHVHQWDWLRQRIWKHPRGHOLQ UHDOOLIHYLVXDOLVDWLRQ :HDNQHVVHV

x 7UDIILF DVVLJQPHQW GXH WR VWDWLF DVVLJQPHQW PRGHOOLQJ URXWH FKRLFHV DUH DSSOLHG PDQXDOO\ZKLFKLVWLPHFRQVXPLQJDQGPDNHVLWPRUHGHPDQGLQJZKHQWUDIILFQHHGV WREHUHGLVWULEXWHGIRUIXWXUHWUDIILFVFHQDULRV

x /DUJHGDWDUHTXLUHPHQWVGHWDLOHGGDWDLVUHTXLUHGWRDFFXUDWHO\FDOLEUDWHDPRGHO

x &RPSXWHUUHTXLUHPHQWVODUJHPRGHOVFDQWDNHDORQJWLPHWRUXQ

  &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  9,66,00LFUR6LPXODWLRQ 0RGHO 7UDIILF0RGHO5HTXLUHPHQWV 0DUFK  x 2XWSXW GDWD DOWKRXJK GHWDLOHG RXWSXW FDQ EH SURGXFHG WKLV LV QRW LQ WKH IRUP RI UHFRJQLVHGGHWHUPLQDQWVRIFDSDFLW\VXFKDV5DWLRRI)ORZWR&DSDFLW\ 5)&  DQG 'HJUHHRI6DWXUDWLRQ 'R6 :KHQXVLQJ9LVVLPGHWHUPLQDWLRQRIZKHWKHUDMXQFWLRQ LVRYHUFDSDFLW\LVPRUHVXEMHFWLYHDQGLVMXGJHGE\TXHXHOHQJWKVDQGGHOD\VDQG

x $Q\ WUDQVSRUW PRGHO LV D VLPSOLILHG UHSUHVHQWDWLRQ RI WKH UHDOZRUOGDQGDVVXFK VKRXOGEHXVHGDVDGHFLVLRQJXLGDQFHWRRO 

  &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  9,66,00LFUR6LPXODWLRQ 0RGHO 9LVVLP2YHUYLHZ 0DUFK   9LVVLP2YHUYLHZ

 ,QWURGXFWLRQ

 9LVVLP LV D PLFURVLPXODWLRQ PRGHOOLQJ WRRO LQ ZKLFK LQGLYLGXDO YHKLFOHV DUH PRGHOOHG LQ ILQH GHWDLOIRUWKHGXUDWLRQRIWKHLUHQWLUHWULSSURYLGLQJDFFXUDWHWUDIILFIORZLQIRUPDWLRQQHFHVVDU\IRU WKHDQDO\VLVRIFRQJHVWHGURDGQHWZRUNV7KLVWHFKQLTXHLVSDUWLFXODUO\VXLWHGWRVLWXDWLRQVVXFK DVDVVHVVLQJWKHHIIHFWVRIURDGVSDFHUHDOORFDWLRQV   'ULYHU 9HKLFOHEHKDYLRXU

 7KH PRYHPHQW RI LQGLYLGXDO YHKLFOHV ZLWKLQ 9LVVLP LV JRYHUQHG E\ WKUHH LQWHUDFWLQJ PRGHOV UHSUHVHQWLQJ YHKLFOH IROORZLQJ MXQFWLRQ JDS DFFHSWDQFH  DQG ODQH FKDQJLQJ EHKDYLRXU $OO WKUHHPRGHOW\SHVDUHZHOOGRFXPHQWHGLQWUDQVSRUWUHVHDUFKDQGDFFHSWHGZRUOGZLGH  7KHLQQRYDWLYHDVSHFWRI9LVVLPLVWKDWWKHVHWKUHHPRGHOVDUHDSSOLHGDWWKHOHYHORILQGLYLGXDO YHKLFOHVWRVLPXODWHWKHWUDIILFFRQGLWLRQVRIZLGHDUHDKLJKZD\QHWZRUNVZLWKLQWKHIUDPHZRUN RIDQHDVLO\XVHGVRIWZDUHVXLWH9HKLFOHG\QDPLFVDUHUHODWLYHO\VLPSOHFRPELQLQJDPL[WXUHRI GULYHUEHKDYLRXUDQGVRPHOLPLWDWLRQVEDVHGRQYHKLFOHV¶SK\VLFDOW\SHDQGNLQHPDWLFV HJVL]H DQGDFFHOHUDWLRQGHFHOHUDWLRQ   ,QGLYLGXDO GULYHU EHKDYLRXU LV GHWHUPLQHG WKURXJK WKH UDQGRP DOORFDWLRQ RI DJJUHVVLRQ DQG DZDUHQHVVFKDUDFWHULVWLFVWRWKHGULYHURIHDFKYHKLFOH-XQFWLRQEHKDYLRXU JDSDFFHSWDQFH  WRSVSHHGKHDGZD\DQGODQHFKDQJHGHVLUHDUHH[DPSOHVRITXDQWLWLHVWKDWYDU\DFFRUGLQJWR WKHVHEHKDYLRXUSDUDPHWHUV   5RDG1HWZRUN

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

 (DFK9LVVLPPRGHOFRQWDLQVDGDWDEDVHRIEXVURXWHV%XVHVDUHVXEMHFWWRWKHVDPHPRGHOOLQJ WUHDWPHQW DV RWKHU YHKLFOHV RQ WKH QHWZRUN LQ UHODWLRQ WR WKH UXOHV DVVRFLDWHG ZLWK YHKLFOH IROORZLQJ JDS DFFHSWDQFH DQG ODQH FKDQJLQJ 7KH H[FHSWLRQ EHLQJ WKDW EXVHV IROORZ IL[HG URXWHV  7KHPRGHOWKHUHIRUHVLPXODWHVWKHLPSDFWRISXEOLFWUDQVSRUWDQGWKHXVHRIHOHPHQWVVXFKDV EXVSULRULW\PHDVXUHV HJEXVDFWLYDWHGVLJQDOV RQRWKHUURDGXVHUV

  &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  9,66,00LFUR6LPXODWLRQ 0RGHO 9LVVLP2YHUYLHZ 0DUFK   3&029$

 3&029$ LV WKH VRIWZDUH DOORZLQJ LPSOHPHQWDWLRQ DQG XVH RI029$ZLWKLQD3& 3HUVRQDO &RPSXWHU HQYLURQPHQW3&029$LVD3&YHUVLRQRIWKH029$0VLJQDOLVHGWUDIILFFRQWURO V\VWHPWKDWDOORZVXVHUVWRFRQQHFWWRDQGFRQWUROMXQFWLRQVLQWUDIILFPLFURVLPXODWLRQPRGHOV  029$WUDIILFVLJQDOFRQWUROµGDWDVHWV¶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



  &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  9,66,00LFUR6LPXODWLRQ 0RGHO %DVH0RGHO'HYHORSPHQW 0DUFK   %DVH0RGHO'HYHORSPHQW

 0RGHO([WHQW

 7KH H[WHQW RI WKH &REDOW 9LVVLP PRGHOV ZDV GHWHUPLQHG ZLWK UHIHUHQFH WR WKH UHTXLUHPHQWV VSHFLILHGIRUWKHPRGHOLHWRDVVHVVRSHUDWLRQDOSHUIRUPDQFHRQWKHILYHPDLQURXWHVLQWRWKH EXVLQHVVSDUNIURPWKHORFDODQGVWUDWHJLFURDGQHWZRUNDVZHOODVWKHNH\URXWHVWKURXJKWKH SDUN7KHVHLQFOXGHWKHIROORZLQJ

x $ +RO\VWRQH ,QWHUFKDQJH ± $ QRUWKERXQG H[LVW VOLS $ VRXWKERXQG H[LW VOLS $+RO\VWRQH:D\$DQG$

x $DQG$1HZ

x 3DUN/DQH

x $%\SDVV1RUKDP5RDG1HZ

x 6LOYHU)R[:D\DQG1HZ

x 7KH6LOYHUOLQNDQG0LGGOH(QJLQH/DQH

x &KXUFKLOO6WUHHW%DWWOH+LOO'ULYHDQG$GGLQJWRQ'ULYHDQG

x 7KH6LOYHUOLQN1RUWK4XLFN6LOYHU:D\&REDOW3DUN:D\DQG$WPHO:D\   9LVVLP3DUDPHWHUV

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

x 6WRSOLQHVLJQDOKHDGSRVLWLRQV

x &DUULDJHZD\DQGODQHPDUNLQJV

x 3HUPLWWHGPRYHPHQWVIURPHDFKODQHRQWKHDSSURDFKWRMXQFWLRQV

x 0RYHPHQWVWKURXJKMXQFWLRQVDQGODQHXVDJHDQG

x 7KH DFWXDO URDG VSDFH XVHG IRU PRYHPHQWV WKURXJK MXQFWLRQV SDUWLFXODUO\ DURXQG URXQGDERXWV  7KHIUHTXHQF\RISHGHVWULDQFURVVLQJVEHLQJXVHGDWMXQFWLRQVDQGDWVWDQGDORQHFURVVLQJVDV ZHOODVWKHDYHUDJHQXPEHURISHGHVWULDQVFURVVLQJZDVGHWHUPLQHGGXULQJVLWHYLVLWV  )XUWKHU GHWDLO ZDV WKHQ DGGHG WR WKH OLQN VWUXFWXUH WR UHSOLFDWH WKH DFWXDO URDG QHWZRUN DQG WKHVHLQFOXGHGWKHIROORZLQJ

  &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  9,66,00LFUR6LPXODWLRQ 0RGHO %DVH0RGHO'HYHORSPHQW 0DUFK  x 6SHHGGHFLVLRQVHQDEOLQJFKDQJHVWRYHKLFOHVSHHGVLQUHODWLRQWRVSHHGOLPLWVDQG DFWXDOVSHHGVWUDYHOOHGRQVWUHHWE\GULYHUV

x 5HGXFHGVSHHGDUHDVHQDEOLQJVORZHUVSHHGVDWORFDWLRQVRIWKHQHWZRUNZKHUHWKH PDMRULW\RIGULYHUVVORZGXHWRGULYLQJµKD]DUGV¶VXFKDVWLJKWFRUQHUVDQGZKHQWZR ODQHVPHUJHLQWRRQH

x 3ULRULW\UXOHV ± XVHGWRHVWDEOLVKWKHULJKWRI ZD\RI YHKLFOHPRYHPHQWVDWDOO QRQ VLJQDOLVHGMXQFWLRQVDQGWRUHSOLFDWH\HOORZER[NHHSFOHDUURDGPDUNLQJV

x 6LJQDOMXQFWLRQV±GHILQLQJWKHRSHUDWLRQRIVLJQDOLVHGMXQFWLRQVZKHWKHURQIL[HGWLPH RU 029$ FRQWUROOHG  )RU 029$ FRQWUROOHG MXQFWLRQV GHWHFWRUV ZHUH LQFRUSRUDWHG LQWRWKH9LVVLPPRGHOVDWGLVWDQFHVDZD\IURPWKHMXQFWLRQVDVIRXQGRQVWUHHWDQG

x %XVVWRSVDQGEXVURXWHVFUHDWLRQRIEXVVWRSVRQWKHQHWZRUNDQGVHWWLQJIL[HGEXV URXWHVWKURXJKWKHKLJKZD\QHWZRUNDQGLGHQWLILFDWLRQRIWKRVHEXVVWRSVVHUYHGE\ HDFK RI WKH EXV URXWHV  %XV URXWLQJ DQG WLPHWDEOLQJ LQIRUPDWLRQ ZDV SURYLGHG E\ 1H[XVDQGDYHUDJHEXVGZHOOWLPHVZHUHXVHG

  7UDIILF'DWD&ROOHFWLRQ

 7KHVRXUFHRIGDWDXVHGIRUJHQHUDWLQJWKHWUDIILFIORZVIRUWKH&REDOW9LVVLPPRGHOVZHUHWKLUG SDUW\ WUDIILF VXUYH\V XQGHUWDNHQ DWNH\ ORFDWLRQV RQ WKH URDG QHWZRUN  &DSLWD FRPPLVVLRQHG 1RUWK(DVW7UDIILF'DWD&ROOHFWLRQ/WG 1(7'& WRXQGHUWDNHDQH[WHQVLYHWUDIILFGDWDFROOHFWLRQ H[HUFLVHLQ0D\  7UDIILFGDWDZDVFROOHFWHGIRUWKH$0SHULRGRIKUVDQGWKH30SHULRGRI KUVDQGLQFOXGHGWKHIROORZLQJ

x 0DQXDO &ODVVLILHG -XQFWLRQ 7XUQLQJ &RXQWV -7&  DW  ORFDWLRQV XQGHUWDNHQ RQ  GD\VDQGUHFRUGHGLQPLQXWHLQWHUYDOV

x $XWRPDWLF 7UDIILF &RXQWV $7&  DW  ORFDWLRQV XQGHUWDNHQ IRU KRXUVRYHU GD\VDQGUHFRUGHGLQPLQXWHLQWHUYDOV

x 4XHXHOHQJWKVXUYH\VDWORFDWLRQVXQGHUWDNHQRQGD\VDQGUHFRUGHGLQPLQXWH LQWHUYDOV

x -RXUQH\ WLPH VXUYH\V RQ  URXWHV UHFRUGHG LQ ERWK GLUHFWLRQV IRU HDFK URXWH XQGHUWDNHQRQGD\VDQG

x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

x $+RO\VWRQH,QWHUFKDQJH

x $1HZ

x $1HZ

x $1HZ

x $1HZ

Manual Classified Junction Turning Count Junction ID Junction JTC 1 The Silverlink North / Silver Fox Way / Way 4-arm Roundabout JTC 2 The Silverlink North / Quick Silver Way 3-arm Priority Junction JTC 3 Norham Road / Middle Engine Lane Signal Controlled 3-arm Junction JTC 4 Middle Engine Lane / The Silverlink / Atmel Way 4-arm Roundabout JTC 5 Middle Engine Lane / Addington Drive / Churchill Street 4-arm Roundabout JTC 6 Silver Fox Way / New York Way Signal Controlled 3-arm Junction JTC 7 Middle Engine Lane / New York Way Signal Controlled 3-arm Junction                

  &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  9,66,00LFUR6LPXODWLRQ 0RGHO %DVH0RGHO'HYHORSPHQW 0DUFK  )LJXUH-XQFWLRQ7XUQLQJ&RXQW/RFDWLRQV                                  7DEOH$XWRPDWLF7UDIILF&RXQWV

Automatic Traffic Counts Junction ID Carriageway Location Junction ID Carriageway Location ATC 1 Silver Fox Way ATC 9 Site of the Old Travelodge ATC 2 Quick Silver Way ATC 10 The Silverlink ATC 3 Middle Engine Lane (East) ATC 11 Bittern Close ATC 4 Atmel Way ATC 12 Osprey Drive ATC 5 Addington Drive ATC 13 Kingfisher Way ATC 6 Battle Hill Drive ATC 14 Kittiwake Close ATC 7 Churchill Street ATC 15 New York Way ATC 8 Mallward Way ATC 16 Middle Engine Lane (West)   7KH $7&V DW ORFDWLRQV   DQG  ZHUH QRW FRPSOHWHG DV WKHVH URDGV DUH RQ SULYDWH ODQG 6LOYHUOLQN5HWDLO3DUN DQGSHUPLVVLRQWRSXWFRXQWHUVGRZQZDVQRWJUDQWHG     

  &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  9,66,00LFUR6LPXODWLRQ 0RGHO %DVH0RGHO'HYHORSPHQW 0DUFK  )LJXUH$XWRPDWLF7UDIILF&RXQW/RFDWLRQV                                  7DEOH4XHXH/HQJWK6XUYH\V

Queue Length Surveys Junction ID Junction Q 1 The Silverlink North / Silver Fox Way / Cobalt Park Way 4-arm Roundabout Q 2 The Silverlink North – Quick Silver Way 3-arm Priority Junction Q 3 Norham Road / Middle Engine Lane Signal Controlled 3-arm Junction Q 4 Middle Engine Lane / The Silverlink / Atmel Way 4-arm Roundabout Q 5 Middle Engine Lane / Addington Drive / Churchill Street 4-arm Roundabout                 &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  9,66,00LFUR6LPXODWLRQ 0RGHO %DVH0RGHO'HYHORSPHQW 0DUFK  )LJXUH4XHXH/HQJWK6XUYH\/RFDWLRQV                                  7DEOH-RXUQH\7LPH6XUYH\V  Journey Time Surveys Route ID Route (1 Way) 1, Pink A191 Eastbound - The Silverlink North - Cobalt Park Way - Atmel Way - The Silverlink Park Lane - The Silverlink North - Cobalt Park Way - Middle Engine Lane - Churchill 2, Yellow Street 3, Light Blue Silver Fox Way - Cobalt Park Way - Middle Engine Lane - Norham Road               

  &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  9,66,00LFUR6LPXODWLRQ 0RGHO %DVH0RGHO'HYHORSPHQW 0DUFK  )LJXUH-RXUQH\7LPH6XUYH\/RFDWLRQV                                           7KH-7&VXUYH\GDWDFROOHFWHGE\1(7'&LQ0D\DQGWKHWUDIILFVXUYH\GDWDXVHGIURP WKH$&RUULGRU9LVVLPPRGHOWRGHYHORSWKHWUDIILFIORZVLVVKRZQLQ$SSHQGL[$   0RGHO7LPH3HULRGV

 7KH-7&GDWDFROOHFWHGLQ0D\DQG0D\ZHUHUHFRUGHGLQPLQXWHLQWHUYDOV)URP WKLVGDWDWKHEXVLHVWSHDNKRXUV HYDOXDWLRQSHULRGV DFURVVWKHPRGHOOHGQHWZRUNKDYHEHHQ HVWDEOLVKHGDVIROORZV

x $03HDN3HULRGRIKUDQG

x 303HDN3HULRGRIKU

  &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  9,66,00LFUR6LPXODWLRQ 0RGHO %DVH0RGHO'HYHORSPHQW 0DUFK   ,QRUGHUWRDFKLHYHUHDOLVWLFPRGHOSHUIRUPDQFHDWWKHEHJLQQLQJRIWKHSHDNHYDOXDWLRQKRXUV PLQXWHVSUHSHDNWUDIILFKDVEHHQORDGHGRQWRWKH$0DQG30QHWZRUNVZKLFKUHSUHVHQWWKH µZDUPXS¶SHULRGV7KHPRGHOVDOVRUXQIRUPLQXWHVDIWHUWKHSHDNHYDOXDWLRQKRXUVLQWKH µFRRO GRZQ¶ SHULRGV WR HQDEOH DFFXUDWH DVVHVVPHQW RI WKH WUDIILF VLWXDWLRQV DW WKH HQG RI WKH SHDNKRXU  7KHUHIRUH WKH 9LVVLP PRGHO VLPXODWLRQ SHULRGV FRQVLVW RI   KUV DQG   KUV  7KH EDVH WUDIILF IORZV JHQHUDWHG IURP WKH -7&V IRU WKH $0 DQG 30 VLPXODWLRQ SHULRGV DUH VKRZQLQWKHIORZGLDJUDPVLQ$SSHQGL[%   6LJQDO'DWD

 )RXURIWKHILYHWUDIILFVLJQDOFRQWUROOHGMXQFWLRQVZLWKLQWKH&REDOW9LVVLPPRGHOVDUHFRQWUROOHG E\029$RQVWUHHW7KH7UDIILF6LJQDOVWHDPDW1HZFDVWOH&LW\&RXQFLO ZKRP SURYLGH D UHJLRQDOWUDIILFVLJQDOVHUYLFHRIGHVLJQLQVWDOODWLRQDQGPDLQWHQDQFH IRU WKH ILYH GLVWULFWV RI 7\QH :HDUSURYLGHG&DSLWDZLWKH[LVWLQJ029$FRQILJXUDWLRQLQIRUPDWLRQ  7KLVLQFOXGHGWKHH[LVWLQJ029$GDWDVHWVVLJQDOVWDJHDQGGHWHFWRUSODQVVLJQDOWLPLQJVDQG VLJQDOVSHFLILFDWLRQGRFXPHQWVIRUWKHIROORZLQJMXQFWLRQV

x $+RO\VWRQH,QWHUFKDQJH

x $1HZ

x 6LOYHU)R[:D\1HZ

x 0LGGOH(QJLQH/DQH1HZ

 %DVH7UDIILF$VVLJQPHQW

 *LYHQWKDWIXOOWXUQLQJ FRXQWVDQGSURSRUWLRQVIRUHDFKMXQFWLRQLQWKHPRGHOOHGQHWZRUNZHUH DYDLODEOH IURP WKH -7&V IRU WKH $0 DQG 30 SHDNV WKH EDVH WUDIILFLQWKHPRGHOVKDVEHHQ DVVLJQHGWRWKHQHWZRUNXVLQJVWDWLFDVVLJQPHQW  ,Q VWDWLF DVVLJQPHQW YHKLFOHV IROORZ IL[HG URXWHV RQ WKH URDG QHWZRUN ZKLFK DUH PDQXDOO\ GHILQHG 9HKLFOHV DUH URXWHG IURP D VWDUW SRLQW YHKLFOH LQSXW  LQWR WKH QHWZRUN DQG DUH GLVWULEXWHG WKURXJK WKH QHWZRUN EDVHG RQ VWDWLF SHUFHQWDJHV WXUQLQJ SURSRUWLRQV  WR WKH VR FDOOHGµWRVHFWLRQ¶ GHVWLQDWLRQV 7KHVWDWLFDVVLJQPHQWRSWLRQLQ9LVVLPDOORZVWKHDVVLJQLQJRI DFWXDOGHPDQGRQDOOURXWHV

  &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  9,66,00LFUR6LPXODWLRQ 0RGHO %DVH0RGHO'HYHORSPHQW 0DUFK   7KHUHIRUH YHKLFOHV LQ WKH &REDOW EDVH PRGHOV KDYH QR FKRLFH ZKLFK SDWK WR IROORZ IURP WKH VWDUW SRLQW WR WKH GHVWLQDWLRQ  )RU D ORW RI WUDIILF IORZ VLPXODWLRQ DSSOLFDWLRQV WKLV LV DQ DSSURSULDWHPHWKRGRIPRGHOOLQJ  7KHUHDUHWKUHHNH\DGYDQWDJHVRIXVLQJVWDWLFDVVLJQPHQWZKLFKLQFOXGHWKHIROORZLQJ

x ,Q WKH PRGHOOHG QHWZRUN SRVVLEOH URXWHV EHWZHHQ RULJLQ DQG GHVWLQDWLRQ DUH IL[HG DQGKHQFHWKHDVVLJQHGIORZVRQWKHURXWHVUHSUHVHQWUHDOLVWLFWUDIILFFRQGLWLRQVDQG YROXPHVIRXQGRQVWUHHW

x .H\ FDOLEUDWLRQ DQG YDOLGDWLRQ LQGLFDWRUV VXFK DV MRXUQH\ WLPHV DQG TXHXH OHQJWKV DUHPRUHUHOLDEOHDQG

x 7KHVHLQGLFDWRUVDUHPRUHUHOLDEOHIRUFRPSDULVRQWRWKHIXWXUH\HDUPRGHOV KLJKZD\ LPSURYHPHQW VFKHPH  DV G\QDPLF DVVLJQPHQW PLJKW SURYLGH PRUH VLJQLILFDQW YDULDWLRQEHWZHHQWKHVH  $VWKH&REDOWEDVHPRGHOVKDYHEHHQFRGHGRQIL[HGURXWHVWKHUHZDVQRQHHGIRULWHUDWLRQWR FRQYHUJHWKHPRGHOVWRILQGWKHEHVWURXWHVLQWHUPVRIWUDYHOFRVWDQGMRXUQH\WLPHVWKURXJK WKHQHWZRUN   %DVH7UDIILF'HPDQG3URILOH

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

  &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  9,66,00LFUR6LPXODWLRQ 0RGHO %DVH0RGHO&DOLEUDWLRQ 0DUFK   %DVH0RGHO&DOLEUDWLRQ

 ,QWURGXFWLRQ

 0RGHOFDOLEUDWLRQUHIHUVWRWKHFKHFNLQJRI WKHWUDIILFPRGHODQGLVWKHSURFHVVRIUHILQLQJWKH LQSXWGDWDDQGSDUDPHWHUVZLWKLQWKHPRGHOVRWKDWWKHPRGHOUHSUHVHQWVREVHUYHGGDWDDQGRQ VWUHHWWUDIILFEHKDYLRXU0RGHOFDOLEUDWLRQLVXQGHUWDNHQLQWZRVWDJHVZKLFKDUHGLVFXVVHGLQ WKHWZRVHFWLRQVEHORZ 

 6WDJH0RGHO&DOLEUDWLRQ'HYHORSLQJWKH1HWZRUN

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

 7KH VHFRQG VWDJH RI PRGHO FDOLEUDWLRQ LQYROYHV HQVXULQJ WKH EDVH PRGHO FRPSOLHV ZLWK µDFFXUDF\RIILW¶LQUHODWLRQWRWKHH[WHQWRIZKLFKWKHPRGHOOHGWUDIILFIORZVPDWFKWKHREVHUYHG WUDIILFIORZV WUDIILFVXUYH\GDWD 7KH'HVLJQ0DQXDOIRU5RDGV %ULGJHV '05% VHWVRXWWKH FULWHULDIRUWKHFDOLEUDWLRQRIWUDIILFPRGHOVLQUHODWLRQWRFRPSDULQJPRGHOOHGDQGREVHUYHGWUDIILF IORZVXVLQJWKH*(+VWDWLVWLFDVWKHLQGLFDWRURIµDFFXUDF\RIILW¶  7KH *(+ VWDWLVWLF LV DQ HPSLULFDO IRUPXOD GHVFULEHG LQ &KDSWHU  RI WKH µ7UDIILF $SSUDLVDO LQ 8UEDQ$UHDV¶ '05%YRO6HFWLRQ DQGLQFXUUHQW:HE7$*DFFHSWDELOLW\JXLGHOLQHVDQGLV GHILQHGDV ሺெି஼ሻమ *(+ ξሺெା஼ሻ  ൗଶ  :KHUH x 0 +RXUO\0RGHOOHG)ORZ x & +RXUO\2EVHUYHG)ORZ  

 &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  9,66,00LFUR6LPXODWLRQ 0RGHO %DVH0RGHO&DOLEUDWLRQ 0DUFK   7KH$0DQG 30 EDVHPRGHOVIRU&REDOW %XVLQHVV 3DUNKDYH EHHQFDOLEUDWHG LQDFFRUGDQFH ZLWKWKH'05%JXLGHOLQHVDQGDGYLFHFRQWDLQHGZLWKLQ,$1µ7KH8VHDQG$SSOLFDWLRQRI 0LFURVLPXODWLRQ0RGHOV¶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

 6WDJH0RGHO&DOLEUDWLRQ5HVXOWV

 ,QRUGHUWRFDOLEUDWHWKH&REDOWEDVHPRGHOVGDWDFROOHFWLRQPDUNHUVZHUHSODFHGLQ9LVVLPRQ DOORIWKHDSSURDFKHVWRHDFKMXQFWLRQWRFDOLEUDWHPRGHOWXUQLQJPRYHPHQWV  7DEOH  SUHVHQWV WKH FDOLEUDWLRQ UHVXOWV IRU WKH $0 EDVH PRGHO 7KH $0 SHDN PRGHO LV FRQVLGHUHGDFFHSWDEOH ZLWKDQ H[FHOOHQW DFFXUDF\ RI ILW DV  RIWKHFRPSDUHGWUDIILFIORZ YDOXHVKDYHD*(+YDOXHRIOHVVWKDQ3OHDVHQRWHWKDW1%6%(%DQG:%LQ7DEOH UHIHUWRGLUHFWLRQRIWUDYHOQRUWKERXQGVRXWKERXQGHDVWERXQGDQGZHVWERXQG

 7DEOH&DOLEUDWLRQ5HVXOWVIRUWKH$0%DVH0RGHO

7UDIILF)ORZV /RFDWLRQ 'LIIHUHQFH *(+ 2EVHUYHG 0RGHOOHG A19 NB Slip towards A19 Holystone Interchange 501 503 0% 0.1 Holystone Way towards A19 Holystone Interchange 631 631 0% 0.0 Whitley Road towards A19 Holystone Interchange 287 290 1% 0.2 A19 SB Slip towards A19 Holystone Interchange 1155 1157 0% 0.1 A186 towards A19 Holystone Interchange 827 827 0% 0.0 A191 towards A19 Holystone Interchange 729 707 -3% 0.8 Benton Road @ A191 Junction 300 307 2% 0.4 A191 EB @ Holyfields Roundabout 1434 1391 -3% 1.1 New York Road @ Holyfields Roundabout 419 425 1% 0.3 Holyfields @ Holyfields Roundabout 153 157 3% 0.3 A191 WB @ Holyfields Roundabout 639 640 0% 0.0 New York Road EB @ Silverlink North 1786 1756 -2% 0.7 Silverlink North @ Roundabout 258 227 -14% 2.0 New York Road WB @ Silverlink North 763 753 -1% 0.4 Silverlink North SB @ Quicksilver Junction 1375 1368 -1% 0.2 Silverlink North NB @ Quicksilver Junction 339 298 -14% 2.3 Quick Silver EB @ Silverlink North Junction 42 49 14% 1.0 Silverlink North @ Silver Fox Way Junction 948 1003 5% 1.8 Silver Fox Way WB @ Silverlink North Junction 490 496 1% 0.3 Cobalt Park Way NB @ Silverlink North Junction 610 628 3% 0.7

 &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  9,66,00LFUR6LPXODWLRQ 0RGHO %DVH0RGHO&DOLEUDWLRQ 0DUFK  Silver Fox Way EB @ Silverlink North Junction 162 167 3% 0.4 Atmel Way @ The Silverlink Junction 378 414 9% 1.8 Middle Engine Lane WB @ Atmel\The Silverlink Junction 344 360 4% 0.9 The Silverlink @ Atmel\The Silverlink Junction 518 519 0% 0.0 Middle Engine Lane EB @ Atmel\The Silverlink Junction 603 617 2% 0.6 Middle Engine Lane @ Addington Drive Junction 429 463 7% 1.6 Churchill Street @ Addington Drive Junction 749 761 2% 0.4 Battle Hill Drive @ Addington Drive Junction 414 424 2% 0.5 Addington Drive 606 616 2% 0.4 Kingfisher Way EB 20 20 0% 0.0 Kingfisher Way WB 118 115 -3% 0.3 kittiwake Close WB 23 23 0% 0.0 Kittiwake Close EB 56 58 3% 0.3 Bittern Close EB 50 50 0% 0.0 Bittern Close WB 99 90 -10% 0.9 The Silverlink in the South NB 727 743 2% 0.6 The Silverlink in the South SB 287 251 -14% 2.2 Arnold Clark Ford Industrial @ Park Lane Junction 27 27 0% 0.0 New York Road EB @ Park Lane Junction LEFT Turn 62 71 13% 1.1 Park Lane@ New York Road Junction 704 690 -2% 0.5 New York Road WB @ Park Lane Junction 668 741 10% 2.8 New York Road EB @ Norham Road Junction 1141 1042 -10% 3.0 Housing estate @ Norham Road Junction 97 104 7% 0.7 A191 Bypass @ Norham Road Junction 1169 1165 0% 0.1 Norham Road @ New York Road Junction 527 518 -2% 0.4 Silver Fox Way @ New York Road Junction 124 174 29% 4.1 Silver Fox Way WB @ New York Way Junction 491 541 9% 2.2 New York Way NB @ Silver Fox Way Junction 137 149 8% 1.0 Silver Fox Way EB @ New York Way Junction 182 203 10% 1.5 Norham Road SB @ Middle Engine Lane Junction 972 899 -8% 2.4 Norham Road NB @ Middle Engine Lane Junction 535 539 1% 0.2 Middle Engine Lane @ Norham Road Junction 173 171 -1% 0.2 Middle Engine Lane WB @ New York Way Junction 349 351 1% 0.1 New York Way @ Middle Engine Lane Junction 143 176 19% 2.6 Middle Engine Lane EB @ New York Way Junction 328 327 0% 0.1 New York Rd EB @ Park Lane Junction AHEAD 712 620 -15% 3.6 Into Arnold Clark from New York West 48 30 -60% 2.9 Into Silver Fox Way South @ Silverlink North Roundabout 942 979 4% 1.2 Into Quick Silver Way @ Silverlink North Junction 237 219 -8% 1.2 North Tyneside Council 207 196 -6% 0.8 Hewlett Packard 224 213 -5% 0.7 The Silverlink North NB 515 485 -6% 1.3    7DEOH  SUHVHQWV WKH FDOLEUDWLRQ UHVXOWV IRU WKH 30 EDVH PRGHO 7KH 30 SHDN PRGHO LV FRQVLGHUHG DFFHSWDEOH ZLWK DQ H[FHOOHQW DFFXUDF\ RI ILW DV  RI WKH FRPSDUHG WUDIILF IORZ YDOXHVKDYHD*(+YDOXHRIOHVVWKDQ

 

 &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  9,66,00LFUR6LPXODWLRQ 0RGHO %DVH0RGHO&DOLEUDWLRQ 0DUFK  7DEOH&DOLEUDWLRQ5HVXOWVIRUWKH30%DVH0RGHO

7UDIILF)ORZV /RFDWLRQ 'LIIHUHQFH *(+ 2EVHUYHG 0RGHOOHG A19 NB Slip towards A19 Holystone Interchange 733 734 0% 0.0 Holystone Way towards A19 Holystone Interchange 862 861 0% 0.0 Whitley Road towards A19 Holystone Interchange 474 477 1% 0.1 A19 SB Slip towards A19 Holystone Interchange 807 810 0% 0.1 A186 towards A19 Holystone Interchange 442 444 0% 0.1 A191 towards A19 Holystone Interchange 1060 1031 -3% 0.9 Benton Road @ A191 Junction 150 150 0% 0.0 A191 EB @ Holyfields Roundabout 672 662 -2% 0.4 New York Road @ Holyfields Roundabout 237 240 1% 0.2 Holyfields @ Holyfields Roundabout 111 114 3% 0.3 A191 WB @ Holyfields Roundabout 1322 1227 -8% 2.7 New York Road EB @ Silverlink North 958 843 -14% 3.8 Silverlink North @ Roundabout 1005 995 -1% 0.3 New York Road WB @ Silverlink North 749 670 -12% 3.0 Silverlink North SB @ Quicksilver Junction 338 405 17% 3.5 Silverlink North NB @ Quicksilver Junction 800 836 4% 1.3 Quick Silver EB @ Silverlink North Junction 240 244 2% 0.3 Silverlink North @ Silver Fox Way Junction 433 477 9% 2.1 Silver Fox Way WB @ Silverlink North Junction 295 297 1% 0.1 Cobalt Park Way NB @ Silverlink North Junction 354 399 11% 2.3 Silver Fox Way EB @ Silverlink North Junction 538 531 -1% 0.3 Atmel Way @ The Silverlink Junction 772 761 -1% 0.4 Middle Engine Lane WB @ Atmel\The Silverlink Junction 421 425 1% 0.2 The Silverlink @ Atmel\The Silverlink Junction 732 721 -2% 0.4 Middle Engine Lane EB @ Atmel\The Silverlink Junction 491 498 1% 0.3 Middle Engine Lane @ Addington Drive Junction 893 910 2% 0.6 Churchill Street @ Addington Drive Junction 886 879 -1% 0.2 Battle Hill Drive @ Addington Drive Junction 518 536 3% 0.8 Addington Drive 384 392 2% 0.4 Kingfisher Way EB 116 116 0% 0.0 Kingfisher Way WB 27 21 -29% 1.2 kittiwake Close WB 79 79 0% 0.0 Kittiwake Close EB 29 38 24% 1.6 Bittern Close EB 75 75 0% 0.0 Bittern Close WB 60 59 -2% 0.1 The Silverlink in the South NB 593 595 0% 0.1 The Silverlink in the South SB 706 668 -6% 1.4 Arnold Clark Ford Industrial @ Park Lane Junction 70 70 0% 0.0 New York Road EB @ Park Lane Junction LEFT Turn 325 326 0% 0.1 Park Lane@ New York Road Junction 485 494 2% 0.4 New York Road WB @ Park Lane Junction 1090 953 -14% 4.3 New York Road EB @ Norham Road Junction 848 828 -2% 0.7 Housing estate @ Norham Road Junction 64 72 11% 1.0 A191 Bypass @ Norham Road Junction 887 883 0% 0.1 Norham Road @ New York Road Junction 782 746 -5% 1.3 Silver Fox Way @ New York Road Junction 491 416 -18% 3.5 Silver Fox Way WB @ New York Way Junction 168 150 -12% 1.4

 &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  9,66,00LFUR6LPXODWLRQ 0RGHO %DVH0RGHO&DOLEUDWLRQ 0DUFK  New York Way NB @ Silver Fox Way Junction 200 213 6% 0.9 Silver Fox Way EB @ New York Way Junction 394 410 4% 0.8 Norham Road SB @ Middle Engine Lane Junction 771 758 -2% 0.5 Norham Road NB @ Middle Engine Lane Junction 462 466 1% 0.2 Middle Engine Lane @ Norham Road Junction 603 557 -8% 1.9 Middle Engine Lane WB @ New York Way Junction 336 358 6% 1.2 New York Way @ Middle Engine Lane Junction 252 224 -13% 1.8 Middle Engine Lane EB @ New York Way Junction 554 556 0% 0.1 New York Rd EB @ Park Lane Junction AHEAD 577 540 -7% 1.6 Into Arnold Clark from New York West 32 27 -19% 0.9 Into Silver Fox Way South @ Silverlink North Roundabout 195 185 -5% 0.7 Into Quick Silver Way @ Silverlink North Junction 33 36 8% 0.5 North Tyneside Council 87 85 -2% 0.2 Hewlett Packard 80 78 -3% 0.2 The Silverlink North NB 719 701 -3% 0.7   7KHUHVXOWVGHPRQVWUDWHWKDWWKH$0DQG30EDVHPRGHOVIRU&REDOW %XVLQHVV3DUNDFKLHYH H[FHOOHQW DFFXUDF\ RI ILW  $ FRPSDULVRQ RI WKH PRGHOOHG WUDIILF IORZV DQG WXUQLQJ PRYHPHQWV ZLWK WKH REVHUYHG JHQHUDWH D OHYHO RI FDOLEUDWLRQ ZKHUH  RIWKHIORZVFRPSDUHGKDYHD *(+RIOHVVWKDQ

 &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  9,66,00LFUR6LPXODWLRQ 0RGHO %DVH0RGHO9DOLGDWLRQ 0DUFK   %DVH0RGHO9DOLGDWLRQ

 ,QWURGXFWLRQ

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

 %DVH0RGHO9DOLGDWLRQ

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

x -RXUQH\ WLPHV E\ FRPSDULQJ REVHUYHG MRXUQH\ WLPHV RQ VSHFLILF URXWHV ZLWK PRGHOOHGMRXUQH\WLPHVRIWKHVDPHURXWHVDQG

x 4XHXH OHQJWKV E\ FRPSDULQJ REVHUYHG TXHXH OHQJWKV DW MXQFWLRQV ZKLFK KDYH PDWHULDO LPSDFWV RQ MRXUQH\ WLPHV DQG GHOD\ ZLWK PRGHOOHG TXHXH OHQJWKV DW WKH VDPHMXQFWLRQV  7KHMRXUQH\WLPHDQGTXHXHOHQJWKVXUYH\VXQGHUWDNHQLQ0D\ DQG0D\KDYHQRW EHHQ XVHG LQ WKH GHYHORSPHQW RI WKH $0 DQG 30 EDVH PRGHOV DQG KDYH EHHQ XVHG LQ WKH YDOLGDWLRQSURFHVV



 &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  9,66,00LFUR6LPXODWLRQ 0RGHO %DVH0RGHO9DOLGDWLRQ 0DUFK   -RXUQH\7LPH9DOLGDWLRQ

 *XLGDQFH LQ '05% DQG LQ :HE7$* IRU WUDIILF DVVLJQPHQW PRGHOV VWDWHV WKDW MRXUQH\ WLPH YDOLGDWLRQ VKRXOG EH EDVHG RQ WKH SHUFHQWDJH GLIIHUHQFH EHWZHHQ PRGHOOHG DQG REVHUYHG MRXUQH\ WLPHV VXEMHFW WR DQ DEVROXWH PD[LPXP GLIIHUHQFH  $FFHSWDELOLW\ FULWHULD LQ '05% 9RO6HFWLRQ&KDSWHULQFOXGHV

x 0RGHOOHG MRXUQH\ WLPHV FRPSDUHG ZLWK REVHUYHG WLPHV VKRXOG EH ZLWKLQ  RI VXUYH\HGWLPHV RUPLQXWHLIKLJKHUWKDQ DQG

x $FFHSWDELOLW\*XLGHOLQH!RIURXWHV  -RXUQH\WLPHVZHUHFROOHFWHGRQWKUHHFUXFLDOURXWHVWKURXJKWKH&REDOWDUHDLQERWKGLUHFWLRQV JHQHUDWLQJVL[VHWVRIMRXUQH\WLPHGDWD7KHVHDUHVKRZQLQ)LJXUHVWR

 )LJXUH-RXUQH\7LPH5RXWHV       

x 5RXWH $ $ 1HZ

x 5RXWH 5HYHUVHRI5RXWH          

 &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  9,66,00LFUR6LPXODWLRQ 0RGHO %DVH0RGHO9DOLGDWLRQ 0DUFK  )LJXUH-RXUQH\7LPH5RXWHV      

x 5RXWH 3DUN/DQH$1HZ

x 5RXWH 5HYHUVHRI5RXWH                     

 &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  9,66,00LFUR6LPXODWLRQ 0RGHO %DVH0RGHO9DOLGDWLRQ 0DUFK  )LJXUH-RXUQH\7LPH5RXWHV       

x 5RXWH 6LOYHU )R[ :D\ &REDOW 3DUN :D\ 0LGGOH (QJLQH /DQH DQG 1RUKDP 5RDG DQG

x 5RXWH 5HYHUVHRI5RXWH       

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

    

 &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  9,66,00LFUR6LPXODWLRQ 0RGHO %DVH0RGHO9DOLGDWLRQ 0DUFK  7DEOH-RXUQH\WLPH9DOLGDWLRQIRUWKH$0 30%DVH0RGHOV

Observed Time Modelled Time % Difference Route Peak Direction (sec) (sec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

  4XHXH/HQJWK9DOLGDWLRQ

 4XHXHOHQJWKVXUYH\VKDYHEHHQXQGHUWDNHQDWDOOMXQFWLRQVLQWKHPRGHOOHGQHWZRUNWKDWKDYH DQLPSDFWRQMRXUQH\WLPHVRUGHOD\4XHXHVXUYH\GDWDZDVFROOHFWHGDWILYHMXQFWLRQVLQ0D\ DQGDWILYHNH\MXQFWLRQVLQ0D\UHFRUGHGLQPLQXWHLQWHUYDOV  7KHWHQMXQFWLRQVLQFOXGHGLQWKHTXHXHOHQJWKYDOLGDWLRQDUHDVIROORZV

x $+RO\VWRQH,QWHUFKDQJH

x $1HZ

x $1HZ

x $1HZ

x $1HZ

x 1RUKDP5RDG0LGGOH(QJLQH/DQH

x 0LGGOH(QJLQH/DQH7KH6LOYHUOLQN$WPHO:D\

x 0LGGOH(QJLQH/DQH$GGLQJWRQ'ULYH&KXUFKLOO6WUHHW

x 7KH6LOYHUOLQN1RUWK6LOYHU)R[:D\&REDOW3DUN:D\DQG

x 7KH6LOYHUOLQN1RUWK4XLFN6LOYHU:D\

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



 &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  9,66,00LFUR6LPXODWLRQ 0RGHO &RQFOXVLRQV 0DUFK   &RQFOXVLRQV

 &RQFOXVLRQV

 7KH$0DQG30EDVHPLFURVLPXODWLRQPRGHOVRI&REDOW%XVLQHVV3DUNKDYHEHHQGHYHORSHG XVLQJ9LVVLPVRIWZDUHLQDFFRUGDQFHZLWKLQGXVWU\VWDQGDUGEHVWSUDFWLFHJXLGHOLQHVLQWHJUDWLQJ WUDIILFVXUYH\GDWDIURP0D\DQG0D\  ,WKDVEHHQGHPRQVWUDWHGWKDWWKHPRGHOVFRPSO\ZLWKµDFFXUDF\RIILW¶LQUHODWLRQWRWKHH[WHQWRI ZKLFK WKH PRGHOOHG WUDIILF IORZV PDWFK REVHUYHG WUDIILF IORZV DJDLQVW '05% FULWHULD  %RWK PRGHOVDFKLHYHDQH[FHOOHQWOHYHORIFDOLEUDWLRQDVRIWKHWXUQLQJIORZVFRPSDUHGKDYHD *(+RIOHVVWKDQ  7KH9LVVLPPRGHOVKDYHEHHQWHVWHGDJDLQVWLQGHSHQGHQWRQVWUHHWWUDIILFGDWDWRVKRZWKDWWKH EDVH PRGHOV UHSURGXFH H[LVWLQJ WUDIILF FRQGLWLRQV ZLWK D UHDVRQDEOH GHJUHH RI DFFXUDF\ DQG DFFHSWDELOLW\LQDFFRUGDQFHZLWK'05%FULWHULD  0RGHOOHG MRXUQH\ WLPHV RI VL[ URXWHV WKURXJK WKH &REDOW DUHD FRPSDUH FORVHO\ DJDLQVW WKH REVHUYHGMRXUQH\WLPHVIRUWKH$0DQG30SHDNVZLWKILYHRIWKHURXWHVVDWLVIDFWRULO\DFKLHYLQJ '05%¶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

  5HFRPPHQGDWLRQV

 7KH 9LVVLP EDVH PRGHOV DUH FRQVLGHUHG WR SURYLGH D UREXVW UHSUHVHQWDWLRQ RI H[LVWLQJ WUDIILF FRQGLWLRQV LQ WKH &REDOW VWXG\ DUHD  7KH PRGHOV DUH WKHUHIRUH GHHPHG VXLWDEOH DQG ILW IRU SXUSRVH WR DVVHVV WKH LPSDFWV RI WKH &REDOW KLJKZD\ LQIUDVWUXFWXUH LPSURYHPHQW VFKHPH LQ WHUPV RI YDOXH IRU PRQH\ HFRQRPLF DSSUDLVDO DQG RSHUDWLRQDO SHUIRUPDQFH RI WKH KLJKZD\ QHWZRUN  7KHPRGHOFDQFRQILGHQWO\EHDGRSWHGIRUWKHQH[WVWDJHRIZRUNWKHGHYHORSPHQWRIWKHIXWXUH \HDUEDVHOLQHPRGHOV

 &REDOW%XVLQHVV3DUN &RPPHUFLDOLQ&RQILGHQFH  9,66,00LFUR6LPXODWLRQ 0RGHO $SSHQGL[$ 0DUFK  $SSHQGL[$  7UDIILF6XUYH\'DWD   

 Client : acobs Site plan for : 1 T Project : 5 1 ipeline urveys Date : ednesday th ovember 2 12

T

- ew or oad

- 1 1 ew or oad

- 1 1 - ilver ox ay

- ortham oad