GCC R0 1sep
GCC R0 1sep
CONTRACT (GCC)
ELECTROPORCELAINS
DIVISION Revision No. R0
(For supply and services)
Issued on 01.04.2017
DEFINITIONS OF TERMS
ABBREVIATIONS
INSTRUCTIONS TO BIDDERS
ANNEXURES
ELECTROPORCELAINS DIVISION
BHARAT HEAVY ELECTRICALS LIMITED
(A Govt. of India Undertaking)
PROF. CNR RAO CIRCLE, IISc POST
MALLESHWARAM
BANGALORE - 560012
GENERAL CONDITIONS
ELECTRO- OF CONTRACT (GCC) DEFINITION OF
PORCELAINS TERMS
DIVISION Revision No. R0
(For supply and services)
Throughout the Tender Documents including the Enquiry Letter, the following words
shall have the meanings assigned to them herein, unless the subject matter or the
context requires otherwise.
1 Purchaser / BHEL shall mean M/s Bharat Heavy Electricals Limited (A Govt. of
India Undertaking) incorporated under the Companies Act 1956 acting through
its Electroporcelains Division (EPD), IISc Post, Prof. CNR Rao Circle,
Malleswaram, Bangalore - 560012 (Karnataka) which expression shall include its
successors and assigns.
4 Owner shall mean the Customer or Client for whose project the enquiry is issued
by Purchaser and shall include its successors and assigns as well as authorized
officer(s)/ representative(s).
6 Tenderer shall mean the Firm/ Company/ Organization which quotes against
the Tender Enquiry issued by Purchaser. It may also be referred as Bidder or
Vendor.
Page 1 of 5
GENERAL CONDITIONS
ELECTRO- OF CONTRACT (GCC) DEFINITION OF
PORCELAINS TERMS
DIVISION Revision No. R0
(For supply and services)
Special Specifications, if any, Integrity Pact (if applicable), the Tender documents,
subsequent amendments mutually agreed upon and the Letter of
Intent/Acceptance issued by BHEL. Any conditions or terms stipulated by the
contractor in the tender documents or subsequent letters shall not form part of the
contract unless, specifically accepted in writing by BHEL in the Letter of
Intent/Award and incorporated in the agreement.
8 Seller/Contractor shall mean the Firm/ Company/ Organization with whom the
Order/Contract is made and shall be deemed to include its successors,
representatives, heirs, executors, administrators and permitted assigns, as the
case may be. It may also be referred as Supplier.
Page 2 of 5
GENERAL CONDITIONS
ELECTRO- OF CONTRACT (GCC) DEFINITION OF
PORCELAINS TERMS
DIVISION Revision No. R0
(For supply and services)
commences from the date of issue of this letter and all terms and conditions of
the contract are applicable from this date
15 "PLANT" shall mean and connote the entire assembly of the plant and
equipments covered by the contract.
17 "TESTS" shall mean and include such test or tests to be carried out on the part of
the contractor as are prescribed in the contract or considered necessary by BHEL,
in order to ascertain the quality, workmanship, performance and efficiency of the
contractor or part thereof.
19 "WORK or CONTRACT WORK" shall mean and include supply of all categories
of labour, specified consumables, tools and tackles and Plants required for
complete and satisfactory site transportation, handling, stacking, storing,
erecting, testing and commissioning of the equipments to the entire satisfaction
of BHEL.
20 "HEADING" - The heading in these General Conditions are solely for the
purpose of facilitating reference and shall not be deemed to be part thereof or be
taken as instructions thereof or of the contract.
Page 3 of 5
GENERAL CONDITIONS
ELECTRO- OF CONTRACT (GCC) DEFINITION OF
PORCELAINS TERMS
DIVISION Revision No. R0
(For supply and services)
22 "TEMPORARY WORK" shall mean all temporary works for every kind required
in or for the execution, completion, maintenance of the work.
28 "RE MOBILISATION" shall mean the resumption of work with all resources
required for the work after demobilization.
29 Site shall mean and include the land and place on which the power station and
related facilities are to be constructed and any adjacent land which may be
allocated or used by Owner or Seller/ Contractor in performance of the Order/
Contract.
Page 4 of 5
GENERAL CONDITIONS
ELECTRO- OF CONTRACT (GCC) DEFINITION OF
PORCELAINS TERMS
DIVISION Revision No. R0
(For supply and services)
completed and Equipment with associated system is ready for taking into
service.
34 Month shall mean calendar month. Day' or 'Days' unless herein otherwise
expressly defined shall mean calendar day or days of twenty four (24) hours each.
A week shall mean continuous period of seven (7) days.
35 Consignee shall mean the official(s)/ person(s) to whom the stores are required
to be delivered in the manner indicated in the Order/ Contract.
36 Plant/ Equipment/ Stores shall mean the goods, machinery, components, parts,
spares etc. required to be supplied by Seller/ Contractor as per Order/ Contract.
37 Contract Engineer (CE) shall mean the official who signs the Order/ Contract on
behalf of Purchaser.
38 Site Engineer shall mean officer of Purchaser/ Owner authorized to receive and
verify the in-coming stores, and issue Material Receipt Certificate (MRC)/ Stores
Receipt Voucher (SRV).
39 Site Inspection Agency (Site IA) shall mean person(s) authorized by Purchaser/
Owner to inspect the stores/ works included in Order/ Contract at the Project
Site.
40 GENERAL
The words incorporating singular shall include plural and vice-versa, the words
incorporating masculine gender shall include feminine gender and vice-versa,
and the words incorporating persons shall include bodies, corporate, limited
liability companies, partnership and other legal entities.
Page 5 of 5
GENERAL CONDITIONS
ELECTRO- OF CONTRACT (GCC) ABBREVIATIONS
PORCELAINS
DIVISION Revision No. R0 Issued on 01.04.2017
(For supply and services)
ABBREVIATIONS
LR Lorry Receipt
MDCC Material Despatch Clearance Certificate
MRC Material Receipt Certificate
MSMED Micro Small and Medium Enterprises Development
INSTRUCTIONS TO BIDDERS
TABLE OF CONTENTS
16.0 LOADING FOR COMMERCIAL DEVIATION (WHERE COST OF WITHDRAWL NOT GIVEN)
18.0 DISCOUNT
Page 1 of 15
GENERAL CONDITIONS INSTRUCTIONS TO
ELECTRO- OF CONTRACT (GCC) BIDDERS
PORCELAINS
DIVISION Revision No. R0
(For supply & services) Issued on 01.04.2017
GENERAL
These general terms & conditions shall apply to all enquiries, notice inviting
tenders, request for quotations concerning the supply of goods and / or rendering
of services to Bharat Heavy Electricals Ltd., - Electroporcelains Division
(hereinafter referred to as BHEL or the Purchaser) or its Projects / Customers.
1.1 Tenderers are advised to study all the tender documents carefully. Any submission
of tender by the tenderer shall be deemed to have been done after careful study and
examination of the tender documents and with full understanding of the
implications thereof. The specifications and terms & conditions shall be deemed to
have been accepted unless otherwise specifically commented upon in Deviation
sheets by the tenderer in his offer. Noncompliance with any of the requirements and
instructions in the Tender Enquiry may result in rejection of the tender.
Integrity Pact (IP) will be applicable for all tenders/ contracts valuing more than a
specific value or if specified in NIT/ RFQ. Integrity Pact document shall be issued
as part of tender and shall be returned by bidders along with their
technocommercial bids, duly signed by authorized signatories. Only those
vendors/ bidders who enter into Integrity Pact with BHEL would be qualified to
participate in the bidding process.
1.2 All commercial terms and conditions, except prices, should be submitted as part of
techno-commercial offer (Part-I) along with unpriced copy of Annexure-II, which
may be opened first. The price part (Part-II) along with price copy of Annexure-II is
to be submitted in a separate sealed cover (or to be uploaded in website in case of
e-procurement) along with techno-commercial offer. Purchaser reserves the right to
open both the Parts at the same time.
1.3 A declaration as per Annexure-III must be sent before opening of Price Bids.
2.1 Tenders shall be submitted in Two parts on or before the Due Date and time
indicated in the NIT/ RFQ.
Page 2 of 15
GENERAL CONDITIONS INSTRUCTIONS TO
ELECTRO- OF CONTRACT (GCC) BIDDERS
PORCELAINS
DIVISION Revision No. R0
(For supply & services) Issued on 01.04.2017
(2) sets.
NOTE: Offers are liable to be rejected for changes made by vendors in the Price
Schedule, except those specified in the unpriced bid and accepted by Purchaser.
2.1.1 PART-I (Techno-Commercial bid) may be opened on Due Date and time specified
in the NIT/ RFQ, or extension thereof, in presence of tenderers who may like to
attend. Incomplete offers are liable to be rejected. Purchaser reserves the right to
open both Part-I and Part-II together.
2.1.2 PART-II containing prices shall be submitted along with Part-I but in a separate
sealed cover. Corrections/amendments shall be properly authenticated, else the
offer is liable to be rejected.
2.1.3 Any discount/revised offer submitted by a bidder on its own shall be accepted
provided it is received on or before the due date and time of offer submission. The
discount shall be applied on pro-rata basis to all items unless specified otherwise by
the bidder.
Unsolicited discounts/revised offers given after due date and time of offer
submission shall not be accepted.
In the event of any bidder, after finalizing the technical specification & scope of
supply, opting to revise and submit their latest price bid instead of submitting
impact on their price bid asked by BHEL, then their original price (i.e. the previous
bid) shall also be opened.
Page 3 of 15
GENERAL CONDITIONS INSTRUCTIONS TO
ELECTRO- OF CONTRACT (GCC) BIDDERS
PORCELAINS
DIVISION Revision No. R0
(For supply & services) Issued on 01.04.2017
Price Impact/ Discount/ Revised Price Bid shall be duly superscribed as:
Price Impact / Discount/ Revised Price Bid (Part-II) (delete whichever is not
applicable), Revision No. ___ against Tender Enquiry No. _______ dated ____
2.2 After technical & commercial examination of the offers received and clarifications
obtained (if required), Part-II (Revised Price Bid/ Original Price Bid along with Price
Impact and Discount, if any) shall be opened, for which the date and time shall be
intimated to technically and commercially acceptable bidders in case of public
opening. BHEL may opt to finalise the prices through Reverse Auction amongst
technically and commercially acceptable bidders. BHEL reserves the right to open
the earlier price bids, if any, submitted by the bidder(s), if required.
2.3 No correspondence shall be entertained from the tenderers after opening of Part-II
(Price bid), except clarifications (if any) asked by BHEL in writing.
a) Vendors are advised to submit the tenders in the tender box, containing Part-I & II
offers in separate covers, preferably cloth lined envelopes should be used, properly
marked before due date and time.
b) BHEL-EPD shall not accept any tender in torn condition and return the same to the
courier immediately with the Stamping "Returned to Sender-Package Damaged".
Offers in damaged condition will not be considered and no request for extension on
this account will be considered.
d) Bidders shall be allowed in the tender room in area identified for bidders and only
one/two authorized representative(s) from each bidder shall be allowed.
e) Bidder shall not be allowed to carry mobile/camera /laptop in the tender room.
The same shall have to be deposited at security in advance and taken back after
tender opening.
f) In case of two part bid system, bidder's representative(s), witnessing the tender
opening shall have to sign on all the envelopes containing the price bids. Thereafter,
all the price bid envelopes shall be put in a bigger envelope / box and the same shall
be properly sealed. The sealed envelope / box shall have to be
Page 4 of 15
GENERAL CONDITIONS INSTRUCTIONS TO
ELECTRO- OF CONTRACT (GCC) BIDDERS
PORCELAINS
DIVISION Revision No. R0
(For supply & services) Issued on 01.04.2017
g) Details of offers shall be read out to bidders and in no case the offers shall be handed
over to any of the bidders for noting down.
2.5 Purchaser may negotiate the tender with L1 bidder after RA/ price bid opening.
2.6.1 Following shall be superscribed on the envelopes which shall be addressed by name
and designation to the official inviting tender:
2.6.2 Both Parts - I & II shall be submitted in separate sealed covers duly superscribed as
indicated above and shall be enclosed further in a main cover duly sealed and
superscribed as:
2.6.3 Envelope not marked with tender enquiry number is liable to be ignored and may not
be opened.
2.7.1 Tenders shall be addressed to BHEL officials by name & designation and sent to
the following address:
Page 5 of 15
GENERAL CONDITIONS INSTRUCTIONS TO
ELECTRO- OF CONTRACT (GCC) BIDDERS
PORCELAINS
DIVISION Revision No. R0
(For supply & services) Issued on 01.04.2017
2) Mr.
2.7.3 Bidder can also submit offer through email, if called for in the enquiry, at the email
address indicated in the enquiry. Such email offers shall be sent only on designated
email-id to reach before 14.00 hrs of the tender due date. BHEL will not be
responsible for incomplete offers and the ones delivered late through e-mail.
2.8 Tenders received after the Due Date and Time of submission as mentioned at 2.7.2
shall be rejected.
2.9 Name of vendors dealing person with Contact No(s), Email ID and Address of
correspondence shall be provided in the bid as per ANNEXURE XVIII.
Tenders shall be submitted in Two parts on or before the Due Date and time
indicated on the portal as per the following instructions:
Comprising of following:
Page 6 of 15
GENERAL CONDITIONS INSTRUCTIONS TO
ELECTRO- OF CONTRACT (GCC) BIDDERS
PORCELAINS
DIVISION Revision No. R0
(For supply & services) Issued on 01.04.2017
Any deviation not mentioned in un-priced copy of this format, but mentioned in
the priced copy, shall not at all be accepted.
Bidder to note all the points mentioned in Notes of Annexure-II to GCC Rev.01.
Cost of withdrawal for the deviations, for which, the Cost of withdrawal is not
specified, shall be taken as NIL.
The vendors shall be forced by the system to upload the above documents which
are marked mandatory. The Annexure mentioned at Sl no 2, 6 & 7 (if applicable),
above should be duly filled by the bidder and should be printed on their letter head
before uploading.
Containing
NOTE: Offers are liable to be rejected for changes made by vendors in the Price
Schedule, except those specified in the unpriced bid and accepted by Purchaser.
The clause nos 2.6 & 2.7 above of this GCC shall not be applicable in case of
eprocurement
Page 7 of 15
GENERAL CONDITIONS INSTRUCTIONS TO
ELECTRO- OF CONTRACT (GCC) BIDDERS
PORCELAINS
DIVISION Revision No. R0
(For supply & services) Issued on 01.04.2017
4.0 Authority of the person signing the tender on behalf of the tenderer:
Notes:
6.1 Tenders shall be submitted strictly in accordance with the requirements of tender
documents. In case of deviations from NIT, the tenderer shall give cost of
withdrawal of such deviation in Sealed Cover as per Annexure-II.
6.2 If bidder insists for price variation clause (PVC) where NIT specifies Firm price, the
offer should contain:-
a) PVC Formula
b) Ceiling for PVC
c) Base date and applicable indices for the base date.
Page 8 of 15
GENERAL CONDITIONS INSTRUCTIONS TO
ELECTRO- OF CONTRACT (GCC) BIDDERS
PORCELAINS
DIVISION Revision No. R0
(For supply & services) Issued on 01.04.2017
Open ended PVC formula is not acceptable. Indices shall be based on Government
of India/ RBI publications/ IEEMA/ LME etc. However, BHEL reserves the right
to accept/ reject the offer with PVC.
ii) If revised price bid/ price impact is asked by BHEL, the validity of the same
shall be 60 days from the date of revised price bid/ price impact or 120 days
from Part-I opening, whichever is later.
iv) Unit prices for scope addition/deletion shall be valid till two years from the date
of PO.
v) Prices of optional items shall be valid till the contract period for placement of
order.
Page 9 of 15
GENERAL CONDITIONS INSTRUCTIONS TO
ELECTRO- OF CONTRACT (GCC) BIDDERS
PORCELAINS
DIVISION Revision No. R0
(For supply & services) Issued on 01.04.2017
obvious misplacement of the decimal point in the unit price, in which case the
total price as quoted shall govern and the unit price corrected accordingly.
10.1 Tenderer shall closely peruse all clauses, specifications & drawings etc. indicated in
tender documents before quoting. In case of any doubt about meaning of any
portion of tender specifications or discrepancies or omissions in drawings/tender
document or clarifications regarding scope of work etc., tenderer shall contact the
official(s) inviting the tender for clarifications, before submitting the offer.
10.3 It is the responsibility of tenderer to keep himself informed about all taxes &duties
applicable on materials/services as prevailing at the time of tendering. If the rates
assumed by tenderer are less than the tariff rates prevailing at the time of tendering,
the tenderer will be himself responsible for such under quotations.
Page 10 of 15
GENERAL CONDITIONS INSTRUCTIONS TO
ELECTRO- OF CONTRACT (GCC) BIDDERS
PORCELAINS
DIVISION Revision No. R0
(For supply & services) Issued on 01.04.2017
bring to the notice of BHEL Management about any fraud or suspected fraud as
soon as it comes to their notice."
11.2 Integrity commitment, performance of the contract and punitive action thereof:
(b) The bidder/ supplier/ contractor will, when presenting his bid, disclose
any and all payments he has made, and is committed to or intends to make to
agents, brokers or any other intermediaries in connection with the award of the
contract and shall adhere to relevant guidelines issued from time to time by Govt.
of India/ BHEL.
© The bidder/ supplier/ contractor will perform/ execute the contract as per the
contract terms & conditions and will not default without any reasonable cause,
which causes loss of business/ money/ reputation, to BHEL.
Page 11 of 15
GENERAL CONDITIONS INSTRUCTIONS TO
ELECTRO- OF CONTRACT (GCC) BIDDERS
PORCELAINS
DIVISION Revision No. R0
(For supply & services) Issued on 01.04.2017
Vendors shall have to enter into Integrity Pact with BHEL if specified in NIT/ RFQ,
failing which vendors offer will be rejected (Refer Annexure-IX).
BHEL reserves the right to go for Reverse Auction (RA) (Guidelines as available
on www.bhel.com) instead of opening the sealed envelope price bid (priced
format submitted along with the offer in case of e-procurement),submitted by the
bidder. This will be decided after techno-commercial evaluation. Bidders to give
their acceptance with the offer for participation in RA. Non-acceptance to
participate in RA may result in non-consideration of their bids, in case BHEL
decides to go for RA.
Those bidders who have given their acceptance to participate in Reverse Auction
will have to necessarily submit Process compliance form (to the designated
service provider) as well as Online sealed bid in the Reverse Auction.
Nonsubmission of Process compliance form or Online sealed bid by the agreed
bidder(s) will be considered as tampering of the tender process and will invite
action by BHEL as per extant guidelines for suspension of business dealings with
suppliers/ contractors (as available on www.bhel.com).
The bidders have to necessarily submit online sealed bid less than or equal to their
envelope sealed price bid (priced format submitted along with the offer in case of
e-procurement) already submitted to BHEL along with the offer. The envelope
sealed price bid of successful L1 bidder in RA, if conducted, shall also be opened
after RA and the order will be placed on lower of the two bids (RA closing price
& envelope sealed price) thus obtained. The bidder having submitted this offer
specifically agrees to this condition and undertakes to execute the contract on thus
awarded rates.
If it is found that L1 bidder has quoted higher in online sealed bid in comparison
to envelope sealed bid (priced format submitted along with the offer in case of
eprocurement) for any item(s), the bidder will be issued a warning letter to this
effect. However, if the same bidder again defaults on this count in any subsequent
tender in the unit, it will be considered as fraud and will invite action by BHEL as
per extant guidelines for suspension of business dealings with suppliers/
contractors (as available on www.bhel.com).
Page 12 of 15
GENERAL CONDITIONS INSTRUCTIONS TO
ELECTRO- OF CONTRACT (GCC) BIDDERS
PORCELAINS
DIVISION Revision No. R0
(For supply & services) Issued on 01.04.2017
14.1 Acceptance of tender will rest with Purchaser and does not bind him to accept the
lowest or any tender and reserves to itself full rights for the following without
assigning any reasons whatsoever:
b) To split the work amongst two or more tenderers (where E&C is not in
tenderers scope).
c) To award the work in part. (where E&C is not in tenderers scope).
14.2 Standard pre-printed conditions of tenderer attached to offer will not be accepted and
only those mentioned in the body of offer will be considered.
14.3 Purchaser will not be bound by any power of attorney granted by tenderer or by
changes in composition of the firm made subsequent to award of Order/Contract.
Purchaser may, however, recognize such power of attorney and changes after
obtaining proper legal advice, the cost of which will be chargeable to the
Seller/Contractor concerned.
14.4 If tenderer deliberately gives wrong information, Purchaser reserves the right to
reject such an offer at any stage or cancel the Order/Contract, if awarded, and forfeit
the security deposit and bank guarantee.
15.1 Deviations (Commercial as well as Technical) from NIT are generally not
acceptable. In case of deviations from NIT, the tenderer shall give cost of withdrawal
of such deviation in Sealed Cover as per Annexure-II.
16.0 Loading For Commercial Deviations (where cost of withdrawal not given)
16.1 For deviations w.r.t. Payment terms, Liquidated damages, Firm prices and
submission of E1/ E2 forms before claiming 10% payment, if a bidder chooses not
to give any cost of withdrawal of deviation loading as per Annexure-VIII will apply.
17.0 Interest Rate for loading will be taken as Base rate of SBI (as applicable on the date
of bid opening, Techno-commercial bid, in case of 2 part bids) + 6% for the period
of relaxation sought by the bidders.
Page 13 of 15
GENERAL CONDITIONS INSTRUCTIONS TO
ELECTRO- OF CONTRACT (GCC) BIDDERS
PORCELAINS
DIVISION Revision No. R0
(For supply & services) Issued on 01.04.2017
18.0 DISCOUNT
Discount offered by any bidder in the original price bid, against the present Tender
Enquiry, which is also indicated to be applicable to any other Enquiry, shall be
considered against the present Tender Enquiry only. In case only percentage
discount is indicated, the same shall be applicable to optional prices also.
19.1 Evaluation of the tender shall be on the basis of delivered cost, i.e. total cost to
BHEL w.r.t the finalized technical scope and commercial conditions (after
considering, inter alia, Customs Duty and CENVAT/ VAT/ Service Tax/Entry
Tax as applicable) and taking into consideration loadings, if any, and all available
financial advantages.
19.2 Exchange rate (TT selling rate of State Bank of India) applicable on the date of Part-
I bid opening shall be considered for evaluation of foreign bids. If the relevant day
happens to be a bank holiday in India, then the FOREX rate as on the previous
bank working day shall be taken for evaluation.
19.3 Foreign suppliers shall ensure that the benefits as applicable under
Comprehensive Economic Partnership Agreement (CEPA) with Government of
India are disclosed in the bid & relevant documents such as Certificate of Country
of Origin, issued by the appropriate authority in the country of Export, is provided
by the vendor along with dispatch documents. Bids shall be evaluated with such
applicable benefits. In the event of Seller failing to provide appropriate documents
for Purchaser to avail disclosed concessional duty benefits in India, financial loss,
so incurred, will be to the Sellers account.
19.4 The quoted CFR price shall be loaded by the following to arrive at the Delivered
Cost:
Page 14 of 15
GENERAL CONDITIONS INSTRUCTIONS TO
ELECTRO- OF CONTRACT (GCC) BIDDERS
PORCELAINS
DIVISION Revision No. R0
(For supply & services) Issued on 01.04.2017
Extant regulations of Govt. of India titled Public Procurement Policy for Micro &
Small Enterprises (MSEs) Order dated 23.03.2012 will be applicable.
Either Principal or authorised agent shall register their Digital Signature Certificate
(DSC) (Class 3- SHA2- 2048 BIT- SIGNING & ENCRYPTION). You are advised to pls
go through the FAQ available in the web portal
(https://bheleps.buyjunction.in). DSC shall be registered for the authorised person
and all transaction done using that DSC against our tenders shall be taken as valid
communication and shall be binding on principal/agent and is valid legally.
In case of Principal (being foreigner) they may apply for DSC through Indian
embassy at their country and can register with us for participating in E-tenders.
Details of the applicable procedure is available in the webpage
http://www.cca.gov.in/cca/
DSC Authorisation
Pls intimate the authorised person name, Mail ID for registering DSC with us to
participate in E-Tenders
Page 15 of 15
*(1(5$/&21',7,216
(/(&752 2)&2175$&7 *&& *(1(5$/&200(5&,$/
7(506 &21',7,216
325&(/$,16 5HYLVLRQ1R5
',9,6,21 )RUVXSSO\DQG ,VVXHGRQ
VHUYLFHV
*(1(5$/&200(5&,$/7(506 &21',7,216
7$%/(2)&217(176
6O1R '(6&5,37,21
$&&(37$1&(2)25'(5
&2175$&7
35,&(6
7$;(6$1''87,(6
67$78725<9$5,$7,21
9$5,$7,212)&2175$&79$/8(
7(5062)3$<0(17
5(&29(5<2)28767$1',1*$02817
&2175$&73(5)250$1&(%$1.*8$5$17((
*8$5$17(()253/$17(48,30(176725(6
'(/,9(5<&203/(7,216&+('8/(
,163(&7,21$1'7(67,1*$7&2175$&725·V35(0,6(6
'(/,9(5<)$,/85($1'7(50,1$7,21/,48,'$7(''$0$*(6
,1685$1&(
,17(5&+$1*($%,/,7<$1'&+$1*(6
3$&.,1*
6725$*(,16758&7,216
0$7(5,$/*22'65(&(,37&(57,),&$7(
3DJHRI
*(1(5$/&21',7,216
(/(&752 2)&2175$&7 *&& *(1(5$/&200(5&,$/
7(506 &21',7,216
325&(/$,16 5HYLVLRQ1R5
',9,6,21 )RUVXSSO\DQG ,VVXHGRQ
VHUYLFHV
&216,*1(( 65,*+72)5(-(&7,21
6+257$*(6'$0$*(6
&21),'(17,$/,7<
7(50,1$7,212)7+(&2175$&7
75$16)(568%/(77,1*$6,*10(1768%&2175$&7,1*
)25&(0$-(85(
,1'(01,),&$7,21
6(77/(0(172)',6387(6
$5%,75$7,21
/$:6*29(51,1*7+(&2175$&7
-85,6',&7,212)&2857
25'(52)35(&('(1&(
6833/,(53(5)250$1&(021,725,1*$1'5$7,1*6<67(0
'($/,1*:,7+%$11('6833/,(56&2175$&7256,1%+(/
3DJHRI
*(1(5$/&21',7,216
(/(&752 2)&2175$&7 *&& *(1(5$/&200(5&,$/
7(506 &21',7,216
325&(/$,16 5HYLVLRQ1R5
',9,6,21 )RUVXSSO\DQG ,VVXHGRQ
VHUYLFHV
$&&(37$1&(2)25'(5
6HOOHU&RQWUDFWRUVKRXOGDFNQRZOHGJHDQGDFFHSWWKH/2,3XUFKDVH2UGHULVVXHG
E\ %+(/ ZLWKLQ GD\V RI LWV UHFHLSW 6HOOHU&RQWUDFWRU VKRXOG H[DPLQH WKH /2,
3XUFKDVH2UGHULPPHGLDWHO\XSRQUHFHLSWDQGEULQJWRWKHQRWLFHRI%+(/ZLWKLQ
GD\VRIUHFHLSWDQ\GLVFUHSDQF\ZLWKUHJDUGWRVFRSHRIZRUNUDWHVWD[HV GXWLHV
DJUHHGWHUPV FRQGLWLRQVHWFIRUGXHUHFWLILFDWLRQ,IWKH6HOOHU&RQWUDFWRUIDLOVWR
JLYHVXFKLQWLPDWLRQDFFHSWDQFHZLWKLQVHYHQGD\VWKH6HOOHU&RQWUDFWRUVKDOOEH
GHHPHGWRKDYHDJUHHGWRVXSSO\WKHVWRUHVDVSHU/2,3XUFKDVH2UGHU
&2175$&7
&RQWUDFWEHWZHHQ3XUFKDVHUDQG6HOOHU&RQWUDFWRULVPHUHO\DFRQWUDFWDQGVKDOOQRW
EHWUHDWHGDVSDUWQHUVKLSEHWZHHQWKHSDUWLHVWRWKHFRQWUDFW
35,&(6
3ULFHV VKDOO EH IRU WKHHQWLUH VFRSH RI ZRUN LQ OLQH ZLWK WKH WHQGHU GRFXPHQWV DQG
VXEVHTXHQWFODULILFDWLRQVFRQILUPDWLRQV
7$;(6$1''87,(6
(;&,6('87<IRU,QGLJHQRXVSXUFKDVH
6HOOHU&RQWUDFWRU LV UHTXLUHG WR HQVXUH WKDW H[FLVH GXW\ LQFOXGLQJ FHVV LI DQ\ LV
TXRWHG DV SHU WKH H[LVWLQJ WDULII RQ WKH GDWH RI WKH RIIHU DQG DOO EHQHILWV DV SHU
H[LVWLQJUXOHVKDYHEHHQFRQVLGHUHG
([FLVHGXW\DFWXDOO\LQFXUUHGE\6HOOHU&RQWUDFWRURQVHOIPDQXIDFWXUHGLWHPVVKDOO
EHUHLPEXUVHGDJDLQVWGRFXPHQWDU\HYLGHQFH
([FLVH GXW\ SDLG E\ ELGGHU RQ LQSXWV ERXJKW RXW LWHPV UDZ PDWHULDOV DQG
FRPSRQHQWV FRQVLJQHG GLUHFWO\ IURP VRXUFHV RWKHU WKDQ 6HOOHU&RQWUDFWRU V
IDFWRU\ZRUNV VKDOO EH LQFOXGHG E\ WKH ELGGHU LQ WKH TXRWHG FHLOLQJ DPRXQW RI
H[FLVH GXW\ DQG WKH VDPH VKDOO EH SD\DEOH H[WUD DW DFWXDOV OLPLWHG WR WKH FHLOLQJ
DPRXQW
,I H[FLVH GXW\ LV SDLG XQGHU SURWHVW RU GLVSXWH LW VKDOO QRW EH UHLPEXUVHG WLOO WKH
GLVSXWH LV VHWWOHG ,I WKH 6HOOHU&RQWUDFWRU FODLPVREWDLQV DQ\ UHIXQG RI WKH H[FLVH
GXW\SDLGWKHVDPHVKDOOEHUHIXQGHGWRWKH3XUFKDVHULPPHGLDWHO\
3DJHRI
*(1(5$/&21',7,216
(/(&752 2)&2175$&7 *&& *(1(5$/&200(5&,$/
7(506 &21',7,216
325&(/$,16 5HYLVLRQ1R5
',9,6,21 )RUVXSSO\DQG ,VVXHGRQ
VHUYLFHV
,I UHTXLUHG E\ 3XUFKDVHU WKH 6HOOHU &RQWUDFWRU ZLOO SURYLGH D FHUWLILFDWH VWDWLQJ
WKDW &(19$7 EHQHILW KDV EHHQ DYDLOHG RI RQ WKH LQSXWV DQG WKH VDPH KDV EHHQ
SDVVHGRQWRWKH3XUFKDVHU
([FLVHGXW\VKDOOEHSDLGDWDFWXDOVDJDLQVWGRFXPHQWDU\HYLGHQFHEXWUHVWULFWHGWR
WKHDPRXQWDQGSHUFHQWDJHLQGLFDWHGLQWKH2UGHU&RQWUDFW
&HQWUDO6DOHV7D[9DOXH$GGHG7D[VKDOOEHUHLPEXUVHGRQO\LIWKHVDPHLVSDLGE\
WKH 6HOOHU &RQWUDFWRU WR WKH UHVSHFWLYH *RYW DXWKRULWLHV RQ GLUHFW VDOHV E\ WKH
6HOOHU&RQWUDFWRUWRWKH3XUFKDVHUPHHWLQJDOOVWDWXWRU\UHTXLUHPHQWVDQGDYDLOLQJ
DOOH[HPSWLRQVFRQFHVVLRQVXQGHUWKHUHVSHFWLYH&HQWUDO6DOHV7D[9DOXH$GGHG
7D[ $FWV 7KH RIIHU VKRXOG FOHDUO\ LQGLFDWH &679$7 SHUFHQWDJH DQG WKH WRWDO
DPRXQWDORQJZLWKFRQFHVVLRQDOIRUP V LIDQ\
3XUFKDVHU LV UHJLVWHUHG LQ %DQJDORUH .DUQDWDND YLGH IROORZLQJ 5HJLVWUDWLRQ
1XPEHUV
&HQWUDO6DOHV7D[5HJLVWUDWLRQ1RZHI
.DUQDWDND7,1
&HQWUDO6DOHV7D[9DOXH$GGHG7D[VKDOOEHUHLPEXUVHGDVSHUWDULIIDSSOLFDEOHEXW
UHVWULFWHG WR WKH SHUFHQWDJH DQG DPRXQW VKRZQ LQ WKH 2UGHU&RQWUDFW ,I LW LV
VKRZQDVLQFOXGHGLQWKHTXRWHGSULFHQRWDSSOLFDEOHLWZLOOQRWEHUHLPEXUVHGE\
WKH3XUFKDVHU
)RU WKH SXUFKDVH UHVROG LWHPV SXUFKDVHU SURSRVHV WR PDNH VDOHLQWUDQVLW XQGHU
VHFWLRQ E RI&HQWUDO6DOHV7D[$FWZKHUHJRRGVPRYHPHQWLVLQWHUVWDWH)RUP
& VKDOO EH LVVXHG DQG H[FKDQJHG DJDLQVW )RUP(( EDVHG RQ TXDUWHUO\
WUDQVDFWLRQV 6HOOHU&RQWUDFWRU LV UHTXLUHG WR VXEPLW KLV UHTXHVW LQ WKH IRUPDW
HQFORVHGDW$QQH[XUH9,ZLWKLQGD\VIURPHQGRIWKH4XDUWHUJLYLQJ6WDWHZLVH
LQYRLFH GHWDLOV ,Q FRPSOLDQFH ZLWK WKH QRWLILFDWLRQ 1R &&:&5 GW
LVVXHG E\ &RPPHUFLDO 7D[ 'HSW *RYW RI .DUQDWDND YHQGRUV VKDOO
VXEPLW DOO WKH UHTXLVLWH GRFXPHQWV ZLWKLQ GD\V RI GLVSDWFK IRU WKH SXUSRVH RI
LVVXDQFHRI¶&·IRUPV7LPHO\LVVXDQFHRI¶&·IRUPZLOOGHSHQGRQWKHFRPSOLDQFHRI
WKLVFRQGLWLRQ
1RWH ,Q FDVH RI QRQUHFHLSW RI (( IRUPV DPRXQW RI GLIIHUHQWLDO WD[ SD\DEOH E\
%+(/VKDOOEHWRYHQGRUV·DFFRXQW6XEPLVVLRQRI((IRUPVVKDOOEHHQVXUHGE\
9HQGRUZLWKLQWKHWLPHVSHFLILHGLQVDOHVWD[DFW
3DJHRI
*(1(5$/&21',7,216
(/(&752 2)&2175$&7 *&& *(1(5$/&200(5&,$/
7(506 &21',7,216
325&(/$,16 5HYLVLRQ1R5
',9,6,21 )RUVXSSO\DQG ,VVXHGRQ
VHUYLFHV
)RUWKHSXUFKDVHUHVROGLWHPV9$7LQYRLFHVLQIRUPDWSUHVFULEHGE\WKHUHVSHFWLYH
6WDWH6DOHV7D[$FWKDYHWREHVXEPLWWHGLQWKHQDPHRI1RGDO$JHQF\LIVSHFLILHG
LQ6SHFLDO&RQGLWLRQVRI&RQWUDFW
6(59,&(7$;IRU,QGLJHQRXVSXUFKDVH
6HUYLFH7D[DQG&HVVOHYLDEOHRQWD[DEOHVHUYLFHVIRUWKHWLPHEHLQJLQIRUFHSDLGE\
WKH6HUYLFH3URYLGHUFRQWUDFWRUWRWKH*RYHUQPHQWDXWKRULWLHVGLUHFWO\VKDOORQO\EH
SDLG DW DFWXDOV DJDLQVW GRFXPHQWDU\ HYLGHQFH RI 6HUYLFH WD[ SD\PHQW 6HUYLFH 7D[
UHPLWWDQFHFKDOODQ PDGHWRFRQFHUQHG6HUYLFHWD[DXWKRULWLHVFRUUHVSRQGLQJWRWKH
WD[ FODLPHG LQ WKH SUHYLRXV LQYRLFH 5$% EXW UHVWULFWHG WR WKH UDWH DQG DPRXQW
PHQWLRQHG LQ WKH RUGHUFRQWUDFW 7KH RIIHU VKRXOG FOHDUO\ LQGLFDWH WKH SHUFHQWDJH
DQGWKHWRWDODPRXQWRIVHUYLFHWD[DVZHOOFHVV&HVVWREHLQGLFDWHGDVVHSDUDWHOLQH
LWHPLQLQYRLFH
6HUYLFHSURYLGHU&RQWUDFWRUWRHQVXUHWKHLUUHJLVWUDWLRQIRU´,QWHQGHG6HUYLFHµWR
EHSURYLGHGEHIRUHFODLPLQJ6HUYLFHWD[XQGHUWKH´LQWHQGHGFDWHJRU\µ'HFLVLRQ
RI%+(/VKDOOEHILQDOZUWWKH´,QWHQGHGFDWHJRU\µLQZKLFKWKHVHUYLFHZLOOEH
IDOOLQJ
,I UHTXLUHG E\ WKH 3XUFKDVHU WKH 6HUYLFH 3URYLGHU&RQWUDFWRU ZLOO SURYLGH D
FHUWLILFDWHVWDWLQJWKDW´&(19$7%HQHILWKDVEHHQDYDLOHGRIRQWKHLQSXWDQGWKH
VDPH KDV EHHQ SDVVHG RQ WR WKH SXUFKDVHUµ RU ´&(19$7 %HQHILW KDV QRW EHHQ
DYDLOHGRIRQWKHLQSXWVµ
9HQGRUVKDOOFRPSO\ZLWKWKH3RLQWRI7D[DWLRQ5XOHVDVFRQWHPSODWHGXQGHUWKH
6HUYLFH 7D[ 5XOHV ,Q FDVH WKH &(19$7 FUHGLW FRXOG QRW EH DYDLOHG E\ %+(/
ZLWKLQWKHWLPHOLPLW VWDWXWRU\ GXHWRGHOD\LQVXEPLVVLRQRILQYRLFH V RUIRUDQ\
RWKHUUHDVRQ V DWWULEXWDEOHWRYHQGRU V FRQWUDFWRU V OLDELOLW\WRZDUGVWKHORVVRI
VXFK&(19$7FUHGLWVKDOOEHWRWKHYHQGRU V FRQWUDFWRU V DFFRXQW7'6VKDOOEH
PDGHIRU,7DVSHU,QFRPH7D[DFW
$OO WD[HV DQG GXWLHV RWKHU WKDQ ([FLVH 'XW\ 6DOHV 7D[ 9$7 6HUYLFH 7D[ VKDOO EH
GHHPHG WR EH LQFOXGHG LQ WKH ([:RUNV SULFHV XQOHVV VSHFLILHG RWKHUZLVH E\ WKH
ELGGHU LQ WKH SULFH ELG 1R YDULDWLRQ LQ RWKHU WD[HV DQG GXWLHV VKDOO EH SD\DEOH E\
3XUFKDVHU +RZHYHU VWDWXWRU\ YDULDWLRQ LQ 2FWURL ZLOO EH SD\DEOH H[WUD DJDLQVW
GRFXPHQWDU\HYLGHQFH$QWLGXPSLQJGXW\LIDQ\VKDOOEHLQWKHDFFRXQWRIELGGHU
DQGVKDOOEHLQFOXGHG LQWKHLUSULFH1RVHSDUDWHSD\PHQWVKDOOEH PDGHE\%+(/
IRUWKHVDPH
3DJHRI
*(1(5$/&21',7,216
(/(&752 2)&2175$&7 *&& *(1(5$/&200(5&,$/
7(506 &21',7,216
325&(/$,16 5HYLVLRQ1R5
',9,6,21 )RUVXSSO\DQG ,VVXHGRQ
VHUYLFHV
&867206'87<IRU,QGLJHQRXVSXUFKDVH
&XVWRPV 'XW\ HOHPHQW IRU LPSRUWHG LWHPV DV SHU 6SHFLDO &RQGLWLRQV RI &RQWUDFW
VKDOO EH LQFOXGHG LQ WKH ([:RUNV SULFHV 1R YDULDWLRQ LQ FXVWRPV GXW\ DQG
H[FKDQJHUDWHIRULPSRUWHGLWHPVVKDOOEHSD\DEOHE\3XUFKDVHU
6HOOHU&RQWUDFWRU VKDOO DUUDQJH IRU KLV RZQ LPSRUW OLFHQVH LI UHTXLUHG VLQFH
3XUFKDVHU ZLOO QRW SURYLGH DQ\ LPSRUW OLFHQVH 7KHUHIRUH 6HOOHU&RQWUDFWRU DORQH
VKDOOEHUHVSRQVLEOHIRUDQ\GHOD\LQJHWWLQJLPSRUWOLFHQVHRUQRQDYDLODELOLW\RIWKH
VDPHRUFRPSOHWLRQRIRWKHUUHODWHGIRUPDOLWLHV3XUFKDVHUVKDOOQRWEHUHVSRQVLEOH
IRUDQ\ILQDQFLDOOLDELOLW\ZKDWVRHYHURQWKLVDFFRXQW
',5(&77$;IRU,QGLJHQRXVSXUFKDVH
3XUFKDVHU VKDOO QRW EH OLDEOH WRZDUGV LQFRPH WD[ RI ZKDWHYHU QDWXUH LQFOXGLQJ
YDULDWLRQVWKHUHRIDULVLQJRXWRIWKLV2UGHU&RQWUDFWDVZHOODVWD[OLDELOLW\RIWKH
6HOOHU&RQWUDFWRUDQGKLVSHUVRQQHO
'HGXFWLRQVRI7D[DWVRXUFHDWWKHSUHYDLOLQJUDWHVVKDOOEHHIIHFWHGE\WKH3XUFKDVHU
EHIRUHUHOHDVHRISD\PHQWDVDVWDWXWRU\REOLJDWLRQLIDSSOLFDEOH7'6FHUWLILFDWHZLOO
EHLVVXHGE\WKH3XUFKDVHUDVSHUVWDWXWRU\SURYLVLRQV
)25(,*1385&+$6(²,PSRUWV
7KHRIIHUHGSULFHVVKDOOEHLQFOXVLYHRIDOOWKH7D[HVDQGGXWLHVDVDSSOLFDEOHLQWKH
FRXQWU\ RI ELGGHU FRXQWU\ RI GLVSDWFK IRU WKH TXRWHG SULFH DV SHU LQFRWHUPV
)2%&)5&,)&37HWF $Q\YDULDWLRQLQWKHVDPHZLOOEHLQVHOOHUVDFFRXQW
67$78725<9$5,$7,21IRU,QGLJHQRXVSXUFKDVH
,I WKH UDWHV IRU WD[HV DQG GXWLHV LQ UHVSHFW RI WKH TXRWHG PDWHULDOV DQGRU VHUYLFHV
DVVXPHG E\ WKH 6HOOHU&RQWUDFWRU DUH OHVV WKDQ WKH WDULII SUHYDLOLQJ DW WKH WLPH RI
WHQGHULQJ 6HOOHU&RQWUDFWRU ZLOO EH UHVSRQVLEOH IRU VXFK XQGHU TXRWDWLRQV
+RZHYHU LI WKH UDWHV DVVXPHG DUH KLJKHU WKDQ WKH FRUUHFW UDWHV SUHYDLOLQJ DW WKH
WLPHRIWHQGHULQJWKHGLIIHUHQFHZLOOEHWRWKHFUHGLWRIWKH3XUFKDVHU
3DJHRI
*(1(5$/&21',7,216
(/(&752 2)&2175$&7 *&& *(1(5$/&200(5&,$/
7(506 &21',7,216
325&(/$,16 5HYLVLRQ1R5
',9,6,21 )RUVXSSO\DQG ,VVXHGRQ
VHUYLFHV
6WDWXWRU\ 9DULDWLRQV LQ ([FLVH 'XW\ 6HUYLFH 7D[ DQG &HQWUDO 6DOHV 7D[9DOXH
$GGHG 7D[ RQO\ RQ VHOIPDQXIDFWXUHG LWHPVVHUYLFHV UHQGHUHG E\ YHQGRU KLPVHOI
RQWKHUDWHVSUHYDLOLQJDWWKHWLPHRIGHOLYHU\FRPSOHWLRQLQFRPSDULVRQWRWKHGDWH
RI RIIHU ZLOO EH WR WKH DFFRXQW RI WKH 3XUFKDVHU 1R RWKHU YDULDWLRQV VXFK DV RQ
FXVWRPV GXW\ H[FKDQJH UDWH PLQLPXP ZDJHV SULFHV RI FRQWUROOHG FRPPRGLWLHV
DQ\RWKHULQSXWHWFVKDOOEHSD\DEOHE\WKH3XUFKDVHU
1RWZLWKVWDQGLQJ WKH DERYH ZKHUH WKH DFWXDO FRPSOHWLRQ RI WKH VXSSO\ RFFXUV
EH\RQG WKH SHULRG VWLSXODWHG LQ WKH 2UGHU&RQWUDFW RU DQ\ H[WHQVLRQ WKHUHRI
YDULDWLRQV UHIHUUHG WR DERYH ZLOO EH OLPLWHG WR WKH UDWHV SUHYDLOLQJ RQ WKH GDWHV RI
VXFK DJUHHG FRPSOHWLRQ SHULRGV RQO\ )RU YDULDWLRQV DIWHU WKH DJUHHG FRPSOHWLRQ
SHULRGVWKH6HOOHU&RQWUDFWRUDORQHVKDOOEHDUWKHLPSDFWIRUWKHXSZDUGUHYLVLRQV
DQG IRU GRZQZDUG UHYLVLRQV SXUFKDVHU VKDOO EH JLYHQ WKH EHQHILW RI UHGXFWLRQ LQ
WD[HVGXWLHV 7KLV ZLOO EH ZLWKRXW SUHMXGLFH WR WKH OHY\ RI SHQDOW\ IRU GHOD\ LQ
GHOLYHU\FRPSOHWLRQVFKHGXOH
35,&(%$6,6
)RU6XSSO\
3ULFHV VKDOO UHPDLQ )LUP RU ZLWK 39& LI VSHFLILHG LQ 1,7 IRU DQ\ LQFUHDVH RU
GHFUHDVH LQ WKH 2UGHU&RQWUDFW YDOXH ([ZRUNV XSWR SOXV RU PLQXV ZLWKLQ
FRQWUDFWSHULRGXQOHVVVSHFLILHGRWKHUZLVHLQ1,77KH3XUFKDVHUVKDOOKDYHWKHULJKW
WR LQFUHDVH RU GHFUHDVH TXDQWLWLHV DQG VFRSH XSWR WKH DERYH H[WHQW RI YDOXH DQG
3DJHRI
*(1(5$/&21',7,216
(/(&752 2)&2175$&7 *&& *(1(5$/&200(5&,$/
7(506 &21',7,216
325&(/$,16 5HYLVLRQ1R5
',9,6,21 )RUVXSSO\DQG ,VVXHGRQ
VHUYLFHV
6HOOHU&RQWUDFWRUVKDOOEHERXQGWRDFFHSWWKHVDPHDWWKHFRQWUDFWHGSULFHVZLWKRXW
DQ\HVFDODWLRQ
'5$:,1*68%0,66,21 $33529$/
'UDZLQJVXEPLVVLRQ $SSURYDOVDVSHUWHFKQLFDOVSHFLILFDWLRQLVWKHUHVSRQVLELOLW\
RIWKHYHQGRU
'(/,9(5<7(506
,QGLJHQRXV3XUFKDVH
*RRGV VKDOO EH GHOLYHUHG RQ ¶)25 'HVWLQDWLRQ· EDVLV WR WKH QDPHG GHVWLQDWLRQ
XQOHVVRWKHUZLVHFDOOHGIRULQWKHHQTXLU\
)RUHLJQ3XUFKDVH²,PSRUWV
*RRGV VKDOO EH GLVSDWFKHG E\ VHD XQOHVV VWDWHG RWKHUZLVH LQ WKH HQTXLU\ RU
SXUFKDVHRUGHU
7KH JRRGV VKDOO EH GHOLYHUHG RQ &)5 EDVLV WR WKH ,&'%$1*$/25( XQOHVV
VSHFLILHGRWKHUZLVHLQHQTXLU\RU3XUFKDVHRUGHU
7KHTXRWHVKRXOGEHLQFOXVLYHRIDOOFKDUJHVLQFOXGLQJWHVWLQJSDFNLQJLQVSHFWLRQ
HWF$GGLWLRQDOO\RFHDQIUHLJKW /,/2EDVLV IRU&)5,&'%$1*$/25(VKDOODOVR
EHTXRWHGVHSDUDWHO\DVSHUSULFHIRUPDW
*RRGVVKDOOEHKDQGOHGIRURFHDQIUHLJKWDLUIUHLJKWE\%+(/·VIUHLJKWIRUZDUGHU
RQO\ XQGHU )2% FRQWUDFWV DQG 2%/ +$:% LVVXHG E\ %+(/ DSSRLQWHG
IRUZDUGHURUKLVDXWKRUL]HGDJHQW V VKDOORQO\EHDFFHSWHGIRUQHJRWLDWLRQ
)RU&)5WHUPVVKLSSHGLQ%UHDN%XON&RQWDLQHUVXSSOLHUVKDOOTXRWHWKHIUHLJKW
FKDUJHVRQ/,/2 /,1(5,1/,1(5287 EDVLV$OWHUQDWHO\VKLSPHQWE\FRQWDLQHU
LVDOVRDFFHSWDEOHDQG,QVXFKFDVHV%/VKRXOGEHDUWKHHQGRUVHPHQWWKDW´IUHH
GD\V IRU &RQWDLQHU 'HWHQWLRQ LV DSSOLFDEOHµ DQG LW ZRXOG EH SUHVXPHG E\ %+(/
WKDWWKHIUHLJKWFKDUJHVTXRWHGLVRQ/,/2 /,1(5,1/,1(5287 EDVLVLQFOXGLQJ
H[WUDFKDUJHVLIDQ\OLNH&RQWDLQHU,PEDODQFH&KDUJHV7UDGH,PEDODQFHFKDUJHV
3RUW FRQJHVWLRQ FKDUJHV RU DQ\ RWKHU FKDUJHV SD\DEOH WR WKH /LQHU 1R RWKHU
FKDUJHV RWKHU WKDQ WKH TXRWHG )UHLJKW UDWH ZLOO EH SDLG E\ %+(/ H[FHSWLQJ
DSSOLFDEOH 7HUPLQDO +DQGOLQJ &KDUJHV &RQWDLQHU FOHDQLQJ &KDUJHV '2 FKDUJHV
WR6KLSSLQJ/LQHUDW'LVFKDUJH3RUW
,Q WKH HYHQW WKHUH LV D GHOD\ E\ WKH 6XSSOLHU LQ QHJRWLDWLQJ VXEPLWWLQJ WKH
GRFXPHQW DQ\ GHPXUUDJH ZKDUIDJH DULVLQJ RXW RI WKH VDPH VKDOO EH WR WKH
DFFRXQW RI WKH 6XSSOLHU DQG VKDOO EH GHGXFWHG IURP WKH ILQDO SD\PHQW $OVR LQ
VXFKFDVHVWKH6XSSOLHUVKDOODXWKRUL]HWKH6WHDPHU6KLSSLQJDJHQWWUDQVSRUWHU
WR IUHHO\ UHOHDVH WKH FRQVLJQPHQW WR %+(/ E\ SURYLGLQJ D ´6XUUHQGHU %LOO RI
/DGLQJµ 2YHUVHDV 6XSSOLHUV KDYH WR JLYH D 1R2EMHFWLRQ &HUWLILFDWH WR %+(/
3DJHRI
*(1(5$/&21',7,216
(/(&752 2)&2175$&7 *&& *(1(5$/&200(5&,$/
7(506 &21',7,216
325&(/$,16 5HYLVLRQ1R5
',9,6,21 )RUVXSSO\DQG ,VVXHGRQ
VHUYLFHV
DXWKRUL]LQJ %+(/ WR JHW WKH 'HOLYHU\ 2UGHU IURP WKH 6WHDPHU $JHQW ZLWKRXW
SURGXFLQJ WKH 2ULJLQDO %LOO RI /DGLQJ 7KLV LV UHTXLUHG WR HQVXUH DYRLGDQFH RI
LQFLGHQFH RI GHPXUUDJH WKDW PD\ DULVH LQ FDVH RI GHOD\HG SUHVHQWDWLRQ RI
GRFXPHQWVE\WKH6HOOHU
'HOLYHU\VKDOOEHVWDJJHUHGLQWKHPDQQHUDVLQGLFDWHGLQWKHWHQGHUIRUHDFKLWHP
9HQGRUVVKDOOVXEPLWWKHLURIIHUDFFRUGLQJO\
7(5062)3$<0(17
)RULQGLJHQRXVSXUFKDVH
)RU)RUHLJQ3XUFKDVH²,PSRUWV
+XQGUHG SHUFHQW SD\PHQW RQ &$' EDVLV DIWHU GD\V IURP WKH GDWH RI
UHFHLSW RI GRFXPHQWV VSHFLILHG LQ 32 DW %+(/ %$1. 5HVSHFWLYH EDQN FKDUJHV WR
UHVSHFWLYHDFFRXQW
9HQGRUV VKDOO VXEPLW GRFXPHQWV IRU SD\PHQW GLUHFWO\ WR %+(/ 3D\PHQW ZLOO EH
UHOHDVHGZLWKLQGD\VDIWHUUHFHLSWRIFRPSOHWHGRFXPHQWVDVSHURUGHUFRQWUDFW
1RWH
)RU LQGLJHQRXV VXSSOLHUV LI WKH GRFXPHQWV DUH URXWHG WKURXJK %DQN WKHQ DOO
EDQNFKDUJHVZLOOEHWRYHQGRU·VDFFRXQW
)RUHLJQ ELGGHUV FDQ RSW IRU SD\PHQW OHVV DJHQF\ FRPPLVVLRQ LI DSSOLFDEOH
WKURXJKLUUHYRFDEOHDQGXQFRQILUPHGOHWWHURIFUHGLW,QWKDWFDVHIRUHYDOXDWLRQ
SXUSRVHSULFHVRIIRUHLJQELGGHUVZLOOEHORDGHGRQDFFRXQWRISD\PHQWWKURXJK
/&HTXDOWRORDGLQJVSHFLILHGDJDLQVW¶3D\PHQWWKURXJK%DQN·LQ$QQH[XUH9,,,
1R ORDGLQJ ZLOO EH GRQH LI IRUHLJQ YHQGRUV DJUHH IRU GD\V LVVXDQFH /& RU
VXEPLW WKH GRFXPHQWV RQ FROOHFWLRQ EDVLV IRU SD\PHQW ZLWKLQ GD\V RI
VXEPLVVLRQRIFRPSOHWHGRFXPHQWV
3DJHRI
*(1(5$/&21',7,216
(/(&752 2)&2175$&7 *&& *(1(5$/&200(5&,$/
7(506 &21',7,216
325&(/$,16 5HYLVLRQ1R5
',9,6,21 )RUVXSSO\DQG ,VVXHGRQ
VHUYLFHV
/&RSHQLQJQHJRWLDWLRQFRQILUPDWLRQFKDUJHVZLOOEHWRYHQGRU·VDFFRXQW
$Q\ QHJDWLYH 39& LI QRW DGMXVWHG LQ HDUOLHU SD\PHQWV ZLOO EH DGMXVWHG DW WKH
WLPHRIVXEVHTXHQWSD\PHQW
'2&80(17672%(68%0,77('%<9(1'25
)RU5HFRJQLWLRQRI'LVSDWFK
&RS\RIWKHIROORZLQJGRFXPHQWVE\HPDLOID[LPPHGLDWHO\RQGHVSDWFK
D ,QYRLFH
E /5%/$:%
F 3DFNLQJ/LVW
G ,QVXUDQFH,QWLPDWLRQ
H 'LVSDWFK&OHDUDQFH
,WLVWKHUHVSRQVLELOLW\RIWKHYHQGRUWRVXEPLWLQYRLFHVDORQJZLWKGRFXPHQWVUHTXLUHGIRU
HIIHFWLQJSD\PHQWZLWKLQWKHVWLSXODWHGSHULRGPHQWLRQHGLQWKHDSSOLFDEOHVWDWXWHIRUWKLV
WHQGHU1RQVXEPLVVLRQRILQYRLFHVGXHWRGHOD\UHDVRQVDWWULEXWDEOHWRYHQGRUUHVXOWLQJ
LQOHDGLQJWRORVVRIWD[FUHGLWIRU%+(/ZLOOEHLQWRYHQGRU·VDFFRXQW
8QGHUFODXVH
D &RPPHUFLDO,QYRLFH²RULJLQDOFRSLHV
E 2ULJLQDOFOHDQRQERDUG%LOORI/DGLQJRUFOHDQFRS\RI2%/LQFDVHRI7HOH[
F 3DFNLQJ /LVW FOHDUO\ VKRZLQJ QXPEHU RI SDFNDJHV JURVV ZHLJKW DQG QHW
ZHLJKWFRQWDLQHUZLVHDOVRRULJLQDOFRSLHV
G 'HOLYHU\VKLSDLUSODQH VFKHGXOH PHQWLRQLQJ WKH HVWLPDWHG GDWH RI $UULYDO
(7$ DWSRUW GHVWLQDWLRQLQFDVHRI&)5&37
3DJHRI
*(1(5$/&21',7,216
(/(&752 2)&2175$&7 *&& *(1(5$/&200(5&,$/
7(506 &21',7,216
325&(/$,16 5HYLVLRQ1R5
',9,6,21 )RUVXSSO\DQG ,VVXHGRQ
VHUYLFHV
H 0'&&IURP%+(/&XVWRPHU²DVSHU6&&²FRSLHV
I *XDUDQWHH&HUWLILFDWH²2ULJLQDOFRSHV
J ,QVXUDQFH,QWLPDWLRQFRSLHV
K 39& &DOFXODWLRQ DQG FRS\ RI DOO DSSOLFDEOH LQGLFHV LI 39& DSSOLFDEOH ²
FRSLHV
L 2ULJLQDO&HUWLILFDWHRIFRXQWU\RI2ULJLQLVVXHGE\FKDPEHURIFRPPHUFH
M 2QHVHWRIRULJLQDOWHVWFHUWLILFDWHV 2 0PDQXDOZKHUHFDOOHGIRU
N )XPLJDWLRQ FHUWLILFDWH ZKHUHYHU FDUJR LV SDFNHG LQ ZRRGHQ SDFNLQJ RU
SDFNLQJRISODQWRULJLQPDWHULDOLVXVHGZKHUHYHUFDOOHGIRU
O 7898/FHUWLILFDWHVZKHUHHYHUFDOOHGIRU
,QFDVHWKH6HOOHUGHFLGHVWRQHJRWLDWHDOORULJLQDOVRI%/WKURXJKQHJRWLDWLQJ%DQNQRQ
QHJRWLDEOH GRFXPHQWV 11' FRQVLVWLQJ RI FRS\ RI %/ +$:% DOO RULJLQDOV DW VOQR
([FHSW2%/ ZLOOEHFRXULHUHGWR3XUFKDVHU6RIW&RS\RIVDPHGRFXPHQWVDWVO
ZLOODOVREHVHQWE\HPDLOWRWKH3XUFKDVHUDWKLVHPDLODGGUHVVJLYHQLQWKH32ZLWKRQH
FRS\ WR EH PDLOHG DW NHWDQ#EKHOHSGFRP UE#EKHOHSGFRP 2WKHU GRFXPHQWV DV
UHTXLUHGZLOOEHVHSDUDWHO\LQGLFDWHGLQWKH3XUFKDVH2UGHU
$GGLWLRQDO H[SHQGLWXUH LI DQ\ LQFXUUHG E\ WKH 3XUFKDVHU E\ ZD\ RI GHWHQWLRQ
GHPXUUDJH UHVXOWLQJ RXW RI GHOD\ DWWULEXWDEOH WR WKH 6HOOHU LQ SURYLGLQJ QHJRWLDEOH
GRFXPHQWVZLOOEHUHFRYHUHGIURPWKH6HOOHU
1RWHIRU $GGLWLRQDOO\YHQGRUPD\IXUQLVKPIJFOHDUDQFHGUJGRFVDSSURYDO
GDWHHWFIRUWKHSXUSRVHRIGHWHUPLQLQJFRQWUDFWXDOGHOLYHU\IRUH[SHGLWLRXVSURFHVVLQJRI
,QYRLFHV
)RU&ODLPLQJ3D\PHQWIRU6HUYLFHVLQYROYLQJ6HUYLFH7D[
D ,QYRLFHDVSHUUXOH$RI6HUYLFH7D[$FW²2ULJLQDOFRS\
E &RS\RI6HUYLFH7D[UHJLVWUDWLRQFHUWLILFDWH
F &RS\ RI FKDOODQ IRU 6HUYLFH 7D[ SD\PHQW FRUUHVSRQGLQJ WR VHUYLFH WD[
FODLPHGLQWKHSUHYLRXVLQYRLFH
G &HUWLILFDWLRQIRUKDYLQJFDUULHGRXWWKHZRUNDVDSSOLFDEOH
$OO\RXULQYRLFHVDJDLQVWRXURUGHUVKDOOUHDFK%+(/²(3'DGGUHVVHGWR
+($'2)'(37$570(170$7(5,$/0$1$*(0(17
%+(/²(/(&752325&(/$,16',9,6,21
2SS,,6F352)&155$2&,5&/(
0$//(6:$5$0%$1*$/25(
3DJHRI
*(1(5$/&21',7,216
(/(&752 2)&2175$&7 *&& *(1(5$/&200(5&,$/
7(506 &21',7,216
325&(/$,16 5HYLVLRQ1R5
',9,6,21 )RUVXSSO\DQG ,VVXHGRQ
VHUYLFHV
D 7KH HQYHORSH VKDOO EH VXSHUVFULEHG ZLWK 32 1R :2 1R DQG WKH %LOO
,QYRLFHQXPEHUV &RQWDFWSHUVRQ
E %LOOV LQYRLFHV ZKLFK DUH EURXJKW SHUVRQDOO\ E\ YHQGRUV WR (3' DUH WR EH
GURSSHG LQ WKH %+(/(3' YHQGRU ELOOV %R[ NHSW QHDU 7HQGHU %R[ DW WKH
5HFHSWLRQ2IILFH
F $Q\ DGGLWLRQDO WD[ LPSOLFDWLRQ WR %+(/ GXH WR GHOD\ LQ VXEPLVVLRQ RI ELOOV E\
9HQGRUEH\RQGRQHPRQWKVKDOOEHWRYHQGRU·VDFFRXQW
/2$',1*'(7$,/6,1&$6(2)'(9,$7,216
/RDGLQJ GHWDLOV LQ UHVSHFW WR GHYLDWLRQV LQ 3D\PHQW 7HUPV /' 39& LQGLFDWHG LQ
$QQH[XUH²9,,,
%+(/·6%$1.(56
/LVWRIWKHFRQVRUWLXPEDQNHUVRI%+(/(3'LVDVSHU$QQH[XUH;
02'(2)3$<0(17
3D\PHQWV VKDOO EH PDGH GLUHFWO\ WR WKH 6HOOHU&RQWUDFWRU E\ (WUDQVIHU
6HOOHU&RQWUDFWRUWRSURYLGHQHFHVVDU\LQIRUPDWLRQIRUWKHVDPHDVSHU$QQH[XUH²
9,,
1R LQWHUHVW VKDOO EH SD\DEOH E\ WKH 3XUFKDVHU RQ WKH VHFXULW\ DPRXQW EDQN
JXDUDQWHHDPRXQWRUEDODQFHSD\PHQWRUDQ\PRQH\ZKLFKPD\EHFRPHGXHRZLQJ
WR GLIIHUHQFH RU PLVXQGHUVWDQGLQJ RU DQ\ GLVSXWH EHWZHHQ WKH 3XUFKDVHU DQG WKH
&RQWUDFWRU RU DQ\ GHOD\ RQ WKH SDUW RI 3XUFKDVHU LQ PDNLQJ SHULRGLFDO RU ILQDO
SD\PHQWRUDQ\RWKHUDVSHFWVLQFLGHQWDOWKHUHWR
5(&29(5<2)28767$1',1*$02817
,QHYHQWRIDQ\DPRXQWRIPRQH\EHLQJRXWVWDQGLQJDWDQ\SRLQWRIWLPHDJDLQVWWKH
6HOOHU&RQWUDFWRU GXH WR H[FHVV SD\PHQW RU DQ\ RWKHU UHDVRQ ZKDWVRHYHU LQ WKH
SUHVHQW RUGHUFRQWUDFW RU DQ\ RWKHU RUGHUFRQWUDFW IURP DQ\ %+(/ 8QLW WKH
RXWVWDQGLQJ DPRXQW VKDOO EH UHFRYHUHG IURP WKH SD\PHQWV GXH WR WKH
6HOOHU&RQWUDFWRURUDWDQ\RWKHUDSSURSULDWHWLPHDQGPDQQHUPRGHDVGHHPHGILW
E\WKH3XUFKDVHUDWLWVVROHGLVFUHWLRQ
&2175$&73(5)250$1&(%$1.*8$5$17((
1R%DQN*XDUDQWHHLVUHTXLUHGZKHUHRULJLQDO2UGHU&RQWUDFWYDOXHLVXSWR5V
/DNKV H[FOXGLQJWD[HVGXWLHVDQGIUHLJKW
)RURULJLQDORUGHUFRQWUDFWYDOXHVDERYH5V/DNKV H[FOXGLQJWD[HVGXWLHVDQG
IUHLJKW RQO\ LI VSHFLILHG LQ 6&& WKH YHQGRU VKDOO VXEPLW &RQWUDFW 3HUIRUPDQFH
3DJHRI
*(1(5$/&21',7,216
(/(&752 2)&2175$&7 *&& *(1(5$/&200(5&,$/
7(506 &21',7,216
325&(/$,16 5HYLVLRQ1R5
',9,6,21 )RUVXSSO\DQG ,VVXHGRQ
VHUYLFHV
%DQN*XDUDQWHHZLWKLQGD\VIURPWKHGDWHRI/2,/2$ DVSHU$QQH[XUH,9 IRU
RI 2UGHU &RQWUDFW YDOXH H[FOXGLQJ WD[HV GXWLHV IUHLJKW WR FRYHU WKH GXH
SHUIRUPDQFHRI2UGHU&RQWUDFWDQGWRIXOILOOWKHJXDUDQWHHFRQGLWLRQVVWLSXODWHGLQ
WKH 2UGHU &RQWUDFW +RZHYHU %* YDOXH FDQ EH SURSRUWLRQDOLW\ UHGXFHG DIWHU
FRPSOHWLRQRI*XDUDQWHHSHULRG8QLWZLVH/RWZLVH6HWZLVHDVDSSOLFDEOH
,QFDVHWKHRUGHULVWREHSODFHGLQIRUHLJQFXUUHQF\WKH%*PXVWDOVREHLQIRUHLJQFXUUHQF\
VR VSHFLILHG E\ WKH 3XUFKDVHU )RUHLJQ YHQGRUV VHHNLQJ SD\PHQW WKURXJK /HWWHU RI
&UHGLW /& VKRXOGVXEPLWWKH%DQN*XDUDQWHHEHIRUH/&RSHQLQJ
9DOLGLW\RIWKH%DQN*XDUDQWHHVKDOOEHIRUWKHHQWLUH*XDUDQWHHSHULRGPRQWKV
FODLPSHULRG,QLWLDOO\LWVKRXOGEHDWOHDVWPRQWKVPRQWKVFODLPSHULRGODWHU
H[WHQGHGWRFRYHUWKHHQWLUHJXDUDQWHHSHULRGWZRPRQWKVEHIRUHLWVH[SLU\
3XUFKDVHUUHVHUYHVWKHULJKWWRHQFDVKWKHEDQNJXDUDQWHHDQGIRUIHLWWKHDPRXQWLQ
WKH HYHQW RI DQ\ GHIDXOW IDLOXUH RU QHJOHFW RQ SDUW RI WKH 6HOOHU &RQWUDFWRU LQ
IXOILOOPHQWRISHUIRUPDQFHRIWKH2UGHU&RQWUDFW
(TXLYDOHQWDPRXQWVKDOOEHUHFRYHUHGIURPSD\PHQWGXHWRWKH6HOOHU&RQWUDFWRU
EHIRUHUHOHDVLQJDQ\SD\PHQWLQDEVHQFHRIDYDOLGEDQNJXDUDQWHH
%DQN *XDUDQWHHV VKDOO EH IURP &RQVRUWLXP %DQN DV SHU $QQH[XUH; %DQN
JXDUDQWHHVIURPFRRSHUDWLYHEDQNVQRQVFKHGXOHGEDQNVDUHQRWDFFHSWDEOH
,Q FDVH RI SULYDWH VHFWRU EDQNV D FODXVH WR EH LQFRUSRUDWHG LQ WKH WH[W RI EDQN
JXDUDQWHH WKDW LW FDQ EH HQIRUFHG E\ EHLQJ SUHVHQWHG DW DQ\ EUDQFK RI WKH EDQN
ORFDWHGLQ%DQJDORUH
7ZR ZLWQHVV VLJQDWXUHV IURP EDQN RIILFLDOV RWKHU WKDQ WKH EDQN RIILFLDO ZKR KDV
DOUHDG\ VLJQHG LV D PXVW %* LV WR EH VXEPLWWHG GLUHFWO\ E\ WKH LVVXLQJ EDQN WR
FRQFHUQHGSXUFKDVHRIILFHUXQGHUUHJLVWHUHGSRVW $'
7KH %DQN *XDUDQWHH WR EH SURYLGHG LQ WKH KDUG DQG QRW LQ WKH 6)06 IRUPDWµ 2XU
EDQNGHWDLOVDUHDVIROORZV
1DPHRI6LWHGLYLVLRQ%+(/(3'
1DPHRI%DQN,'%,%$1.63(&,$/,=('&25325$7(%5$1&+
3DJHRI
*(1(5$/&21',7,216
(/(&752 2)&2175$&7 *&& *(1(5$/&200(5&,$/
7(506 &21',7,216
325&(/$,16 5HYLVLRQ1R5
',9,6,21 )RUVXSSO\DQG ,VVXHGRQ
VHUYLFHV
%UDQFK$GGUHVV6+$.7+,&20)25772:(5
.+52$'%$1*$/25(
3+12
.,1'$7710U0$102+$1620$
$/70UV936+,9$6+$.7,
3+12
%UDQFK,)6&&RGH,%./
$FFRXQW1R
:KHUHYHU WKH FRQWUDFW LV IRU VXSSO\ RI *RRGV SURFHVVHG RQ ODERXU EDVLV IURP %+(/
VXSSOLHG PDWHULDOV WKH PDWHULDOV VKDOO EH LVVXHG DJDLQVW D VXLWDEOH %DQN JXDUDQWHH DV
VSHFLILHGLQWKH(QTXLU\
*8$5$17(()253/$17(48,30(176725(6
6HOOHU &RQWUDFWRU VKDOO ZDUUDQW WKDW WKH VWRUHV VXSSOLHG VKDOO EH IUHH IURP DOO
GHIHFWVDQGIDXOWVLQGHVLJQ HQJLQHHULQJPDWHULDOZRUNPDQVKLS PDQXIDFWXUH
DQGVKDOOEHRIWKHKLJKHVWJUDGHDQGFRQVLVWHQWZLWKWKHHVWDEOLVKHGDQGJHQHUDOO\
DFFHSWHGVWDQGDUGVDQGLQIXOOFRQIRUPLW\ZLWKWKH2UGHU&RQWUDFWVSHFLILFDWLRQV
GUDZLQJRUVDPSOHVLIDQ\
*XDUDQWHH SHULRG IRU 6XSSO\ VKDOO EH HLJKWHHQ PRQWKV IURP WKH GDWH RI ODVW
GLVSDWFKRUDVSHU6&&ZKLFKHYHULVODWHU
$OO UHSODFHPHQWV DQG UHSDLUV GXULQJ WKH JXDUDQWHH SHULRG VKDOO EH GHOLYHUHG DQG
FRPSOHWHG SURPSWO\ DQG VDWLVIDFWRULO\ ZLWKLQ D SHULRG RI RQH PRQWKV IURP WKH
WLPH RI UHSRUWLQJ WKH GHIHFW ORVV UHMHFWLRQ HWF RU DQ\ PXWXDOO\ DJUHHG SHULRG
ZLWKRXW SUHMXGLFH WR SXUFKDVHU·V RWKHU OHJDO ULJKWV ,I WKH 6HOOHU &RQWUDFWRU VR
GHVLUHV DQG WKH 3XUFKDVHU DJUHHV VXEMHFW WR LPSRUW FRQWURO UHJXODWLRQV WKH
UHSODFHGSDUWVFDQEHWDNHQRYHUE\6HOOHU&RQWUDFWRURUKLVUHSUHVHQWDWLYHRUFDQ
EH GLVSDWFKHG DW 6HOOHU &RQWUDFWRU V FRVW 1R FODLP ZKDWVRHYHU VKDOO EH
HQWHUWDLQHGE\3XUFKDVHURQDFFRXQWRIVXFKUHSODFHGSDUWV
$OO WKH UHSODFHG DQG UHSOHQLVKHG VWRUHV VKDOO DOVR EH JXDUDQWHHG DV SHU DERYH
FODXVHV
'HFLVLRQRI3XUFKDVHUZLWKUHJDUGWR6HOOHU&RQWUDFWRU VOLDELOLW\DQGWKHDPRXQW
LQYROYHGLIDQ\SD\DEOHE\6HOOHU&RQWUDFWRUXQGHUWKHJXDUDQWHHVKDOOEHILQDO
FRQFOXVLYH DQG ELQGLQJ +RZHYHU YHQGRU·V PD[LPXP OLDELOLW\ ZLOO EH OLPLWHG WR
WKHWRWDOFRQWUDFWYDOXHLQFOXGLQJWD[HVGXWLHVDQGIUHLJKW
'(/,9(5<&203/(7,216&+('8/(
3DJHRI
*(1(5$/&21',7,216
(/(&752 2)&2175$&7 *&& *(1(5$/&200(5&,$/
7(506 &21',7,216
325&(/$,16 5HYLVLRQ1R5
',9,6,21 )RUVXSSO\DQG ,VVXHGRQ
VHUYLFHV
6XSSO\RISODQWHTXLSPHQWVWRUHVVKDOOQRWEHFRQVLGHUHGFRPSOHWHXQWLOWKH\KDYH
EHHQ LQVSHFWHG DQG DFFHSWHG DW WKH SODFH DQG GHVWLQDWLRQ VSHFLILHG IRU GHOLYHU\ E\
WKH WLPH VWLSXODWHG XQGHU WKH WHUPV FRQGLWLRQV RI WKH 2UGHU&RQWUDFW 0HUH
SD\PHQW E\ LWVHOI VKDOO QRW FRQVWLWXWH DFFHSWDQFH RI WKH JRRGV RU PDWHULDOV LQ DQ\
PDQQHUZKDWVRHYHU
9HQGRU VKDOO VWULFWO\ DGKHUH WR GHOLYHU\ VFKHGXOH ,Q FDVH RI QRQ FRPSOLDQFH WR
DJUHHGVFKHGXOHVPLOHVWRQHVWKHQLWZRXOGEHSUHVXPHGWKDWYHQGRUFRQWUDFWRU
LV QRW IXOILOOLQJ FRQWUDFWXDO REOLJDWLRQV %+(/ UHVHUYHV WKH ULJKW WR WDNH VXLWDEOH
DFWLRQOLNHRSHUDWLQJ´5LVN FRVWFODXVHµ
3XUFKDVHU·VQRPLQDWHG,QVSHFWLRQ$JHQF\VKDOOKDYHDWDOOUHDVRQDEOHWLPHVDFFHVVWR
6HOOHU &RQWUDFWRU V SUHPLVHV RU ZRUNV DQG VKDOO KDYH WKH SRZHU DW DOO UHDVRQDEOH
WLPHVWRLQVSHFWGUDZLQJVRIDQ\SRUWLRQRIWKHZRUNRUH[DPLQHWKHPDWHULDOVDQG
ZRUNPDQVKLS RI WKH VWRUHV GXULQJ WKHLU PDQXIDFWXUH DQG LI SDUW RI WKH VWRUHV LV
PDQXIDFWXUHGDWRWKHUSUHPLVHVWKH6HOOHU&RQWUDFWRUVKDOODUUDQJHIRULQVSHFWLRQ
H[DPLQDWLRQDQGWHVWLQJE\WKH,QVSHFWLRQ$JHQF\DVLIWKHVWRUHLVPDQXIDFWXUHGRQ
WKH6HOOHU&RQWUDFWRU VSUHPLVHV
,QVSHFWLRQFDOOVVKRXOGEHJLYHQDGHTXDWHQRWLFHRIRQHZHHNRUDVPXWXDOO\DJUHHG
SHULRGLQDGYDQFHLQZULWLQJWRWKHSXUFKDVHUDERXWWKHGDWH SODFHZKHUHJRRGV
ZLOOEHUHDG\IRULQVSHFWLRQ WHVWLQJDVSURYLGHGIRULQWKHFRQWUDFW
6XFK LQVSHFWLRQ H[DPLQDWLRQ DQG WHVWLQJ E\ LWVHOI VKDOO QRW UHOLHYH WKH
6HOOHU&RQWUDFWRUIURPDQ\REOLJDWLRQXQGHUWKH2UGHU&RQWUDFW
6HOOHU&RQWUDFWRU VKDOO JLYH ,QVSHFWLRQ $JHQF\ UHDVRQDEOH QRWLFH RI DQ\ PDWHULDO
EHLQJ UHDG\ IRU WHVWLQJ DQG WKH ,QVSHFWLRQ $JHQF\ VKDOO XQOHVV WKH LQVSHFWLRQ RI
WHVWVLVYROXQWDULO\ZDLYHG DWWHQGDWWKH6HOOHU&RQWUDFWRU VSUHPLVHVZLWKLQILIWHHQ
GD\VRIWKHGDWHRQZKLFKWKHPDWHULDOLVQRWLILHGDVEHLQJUHDG\$OOVWDQGDUG
VKRS WHVWV SK\VLFDO DQG FKHPLFDO WHVWV UHTXLUHG E\ WKH VWDQGDUGV RU DV PD\ EH
SUHVFULEHG RU DSSURYHG DV SHU 2UGHU &RQWUDFW VKDOO EH FRQGXFWHG E\ WKH
6HOOHU&RQWUDFWRU3XUFKDVHU,QVSHFWLRQ$JHQF\UHVHUYHVWKHULJKWWRZDLYHDQ\RI
WKH DERYH WHVWV UHTXLUHPHQWV DQG WR SUHVFULEH QHZ WHVWV LI IRXQG QHFHVVDU\ WR
FRPSOHWH WKH ZRUN VR DV WR FRQIRUP WR WKH EHVW SUDFWLFHV 6HOOHU&RQWUDFWRU VKDOO
IRUWKZLWK IRUZDUG WR WKH ,QVSHFWLRQ $JHQF\ GXO\ FHUWLILHG FRSLHV RI WKH WHVW
FHUWLILFDWHVLQTXDGUXSOLFDWHIRUDSSURYDO)XUWKHUFRSLHVRIWKHVKRSWHVWFHUWLILFDWHV
VKDOO EH ERXQG ZLWK WKH LQVWUXFWLRQ PDQXDOV UHIHUUHG WR LQ 6HOOHU&RQWUDFWRU V
GRFXPHQWVGUDZLQJVDQGLQVWUXFWLRQPDQXDOV
3DJHRI
*(1(5$/&21',7,216
(/(&752 2)&2175$&7 *&& *(1(5$/&200(5&,$/
7(506 &21',7,216
325&(/$,16 5HYLVLRQ1R5
',9,6,21 )RUVXSSO\DQG ,VVXHGRQ
VHUYLFHV
:KHUHWKH2UGHU&RQWUDFWSURYLGHVIRUWHVWVLQVSHFWLRQVDWWKHSUHPLVHVRUZRUNV
RI WKH 6HOOHU&RQWUDFWRU RU DQ\ VXEFRQWUDFWRU WKH 6HOOHU&RQWUDFWRU H[FHSW
VSHFLILHG RWKHUZLVH VKDOO SURYLGH IUHH RI FKDUJH VXFK DVVLVWDQFH ODERXU PDWHULDOV
HOHFWULFLW\IXHOZDWHUVWRUHVDSSDUDWXVPHDVXULQJLQVWUXPHQWVDQGWHVWHTXLSPHQW
LQFOXGLQJDQ\RWKHUIDFLOLWLHVDVPD\EHUHDVRQDEO\UHTXLUHGWRFDUU\RXWVXFKWHVWV
HIILFLHQWO\,QFDVHRILQVSHFWLRQE\%+(/RU%+(/&86720(5WKHFRVWRIWR IUR
SDVVDJH DQG ERDUGLQJ ORGJLQJ VKDOO EH ERUQH E\ SXUFKDVHUFXVWRPHU XQOHVV
RWKHUZLVH VSHFLILFDOO\ DJUHHG ,Q FDVH RI IRUHLJQ YHQGRUV WKH FRVW RI WKLUG SDUW\
LQVSHFWLRQZKHUHFDOOHGIRUVKDOOEHGHHPHGWREHLQFOXGHGLQWKHTXRWHGSULFH
,QVSHFWLRQFDOOVVKDOOEHDGGUHVVHGWR%+(/Ǧ3XUFKDVH'HSDUWPHQWLUUHVSHFWLYH
RILQVSHFWLRQFDWHJRULHV
,163(&7,210($685,1*$1'7(67(48,30(176
,QVSHFWLRQ 0HDVXULQJ DQG 7HVW (TXLSPHQWV ,07( ZKHWKHU XVHG E\ WKH
6HOOHU&RQWUDFWRU RU VXEFRQWUDFWRU VKDOO EH FDOLEUDWHG PDLQWDLQHG DQG FRQWUROOHG
&DOLEUDWLRQVKDOOEHYDOLGDQG,07(PDLQWDLQHGLQVRXQGFRQGLWLRQGXULQJXVDJH
,QDGGLWLRQWRDERYH6HOOHU&RQWUDFWRUVKDOOHQVXUHWKHIROORZLQJ
D 0HDVXUHPHQW XQFHUWDLQW\ LV NQRZQ DQG FRQVLVWHQW ZLWK UHTXLUHG PHDVXUHPHQW
FDSDELOLW\RIWKH,07(
E 6HOHFWLRQ RI ,07(V LV FRPSDWLEOH ZLWK WKH QHFHVVDU\ DFFXUDF\ DQG SUHFLVLRQ RI
UHTXLUHGPHDVXUHPHQW
F ,07(V DUH FDOLEUDWHG DW WKH UHTXLUHG LQWHUYDOV DJDLQVW FHUWLILHG HTXLSPHQWV
KDYLQJ NQRZQ YDOLG UHODWLRQVKLS WR QDWLRQDOO\ UHFRJQL]HG VWDQGDUGV DW
UHFRJQL]HGFDOLEUDWLRQODEV
G &DOLEUDWLRQUHFRUGVDUHDYDLODEOHDQGWUDFHDEOHWRWKHSDUWLFXODU,07(
H ,Q FDVH GXULQJ UHFDOLEUDWLRQ WKH ,07( LV IRXQG RXW RI FDOLEUDWLRQ UHSRUW RQ
DFWLRQWDNHQWRYDOLGDWHWKHSUHYLRXVUHVXOWVDORQJZLWKERWKFDOLEUDWLRQUHFRUGV
RIWKH,07(WREHIXUQLVKHGWR,QVSHFWLRQ$JHQF\
I ,07(V DUH VWRUHG KDQGOHG DQG SUHVHUYHG VXFK WKDW DFFXUDF\ DQG ILWQHVV DUH
PDLQWDLQHGDQGVDIHJXDUGHGIURPDGMXVWPHQWV
127(3XUFKDVHU V GHFLVLRQ RQ DFFHSWDELOLW\ RI WKH SURGXFW LQ VXFK FDVHV VKDOO EH
ELQGLQJ
5HVSRQVLELOLW\RIXVDJHRIYDOLGDQGFDOLEUDWHG,07(VE\KLVVXEFRQWUDFWRU V VKDOO
EHRIWKH6HOOHU&RQWUDFWRU
3DJHRI
*(1(5$/&21',7,216
(/(&752 2)&2175$&7 *&& *(1(5$/&200(5&,$/
7(506 &21',7,216
325&(/$,16 5HYLVLRQ1R5
',9,6,21 )RUVXSSO\DQG ,VVXHGRQ
VHUYLFHV
,Q FDVH FDOLEUDWLRQ UHFRUGV DUH UHTXLUHG E\ SXUFKDVHU FRSLHV RI WKH VDPH VKDOO EH
IXUQLVKHG
6HOOHU&RQWUDFWRUVKDOOEHIXOO\UHVSRQVLEOHIRUWKH4XDOLW\RISURGXFWVVXSSOLHGE\
VXEFRQWUDFWRUV
3XUFKDVHU2ZQHU ZLOO LVVXH 0'&& WR WKH 6HOOHU&RQWUDFWRU EDVHG RQ LQVSHFWLRQ
UHSRUWWHVWFHUWLILFDWHV
1R LWHP HTXLSPHQWV VKDOO EH GLVSDWFKHG ZLWKRXW REWDLQLQJ 0DWHULDO 'LVSDWFK
FOHDUDQFH FHUWLILFDWH IURP %+(/Ǧ(3' 3XUFKDVH 'HSDUWPHQW LUUHVSHFWLYH RI
LQVSHFWLRQFDWHJRULHV
6DWLVIDFWRU\ FRPSOHWLRQ RI WHVWV RU LVVXH RI 0'&& VKDOO QRW ELQG WKH
3XUFKDVHU2ZQHUWRDFFHSWWKHVXSSO\HTXLSPHQWVKRXOGLWRQIXUWKHUWHVWVDIWHU
HUHFWLRQEHIRXQGQRWWRFRPSO\ZLWKWKHFRQWUDFWSURYLVLRQV
'(/,9(5<)$,/85($1'7(50,1$7,21/,48,'$7(''$0$*(6
7LPHO\ GLVSDWFKGHOLYHU\ DQG FRPSOHWLRQ RI RWKHU VFKHGXOHV DV VWLSXODWHG LQ
2UGHU&RQWUDFW VKDOO EH WKH HVVHQFH RI 2UGHU&RQWUDFW ,I WKH 6HOOHU&RQWUDFWRU
IDLOVWRFRPSOHWHWKHGLVSDWFKGHOLYHU\DQGRWKHUVFKHGXOHVZLWKLQWKHWLPHSHULRG
VWLSXODWHGLQ2UGHU&RQWUDFWRUZLWKLQDQ\H[WHQVLRQRIWLPHJUDQWHGE\3XUFKDVHU
LW VKDOO EH ODZIXO IRU 3XUFKDVHU WR UHFRYHU GDPDJHV IRU EUHDFK RI 2UGHU&RQWUDFW
ZLWKRXW SUHMXGLFH WR DQ\ RWKHU ULJKWV DQGRU UHPHGLHV SURYLGHG IRU LQ WKH
2UGHU&RQWUDFW DQG KHUHXQGHU )RU DQ\ GHOD\ QRW DWWULEXWDEOH WR WKH
6HOOHU&RQWUDFWRU WKH 6HOOHU&RQWUDFWRU PXVW UHSRUW WKH VDPH WR 3XUFKDVHU
LPPHGLDWHO\
'(/$<(''(/,9(5<
3XUFKDVHU UHVHUYHV WKH ULJKW WR UHFRYHU IURP WKH 6HOOHU&RQWUDFWRU DV DJUHHG
OLTXLGDWHGGDPDJHVDQGQRWE\ZD\RISHQDOW\DVXPHTXLYDOHQWWRKDOI ô SHUFHQW
RIWKHWRWDOFRQWUDFWSULFHSHUZHHNRUSDUWWKHUHRIVXEMHFWWRDPD[LPXPRIWHQ
SHUFHQWRIWKHWRWDOFRQWUDFWSULFHH[FOXGLQJHOHPHQWVRIWD[HVGXWLHVDQGIUHLJKWLI
3DJHRI
*(1(5$/&21',7,216
(/(&752 2)&2175$&7 *&& *(1(5$/&200(5&,$/
7(506 &21',7,216
325&(/$,16 5HYLVLRQ1R5
',9,6,21 )RUVXSSO\DQG ,VVXHGRQ
VHUYLFHV
WKH6HOOHU&RQWUDFWRUIDLOVWRGHOLYHURUGHUHGVWRUHVZLWKLQWKHSHULRGVWLSXODWHGLQ
WKH2UGHU&RQWUDFW
+RZHYHU,QFDVHRIVWDJJHUHGGHOLYHU\VFKHGXOHWKH/'VKDOOEHKDOI ô SHUFHQWRI
WKHXQGHOLYHUHGSRUWLRQSHUZHHNRUSDUWWKHUHRIVXEMHFWWRDPD[LPXPRIWHQ
SHUFHQW RI WKH FRQWUDFW SULFH H[FOXGLQJ HOHPHQWV RI WD[HV GXWLHV DQG IUHLJKW LI WKH
6HOOHU &RQWUDFWRU IDLOV WR GHOLYHU DQ\ SDUW RI WKH RUGHUHG VWRUHV ZLWKLQ WKH SHULRG
VWLSXODWHGLQWKH2UGHU&RQWUDFW
127(
/5 55 GDWH IRU LQGLJHQRXV VXSSOLHV DQG $:% %/ GDWH IRU
)2%&,)&,3&)5&37 FRQWUDFWV VKDOO EH WUHDWHG DV WKH GDWH RI GLVSDWFK IRU
OHY\LQJ/'DVSHU&ODXVH
,QFDVHRIDQ\DPHQGPHQWUHYLVLRQ/'VKDOOEHOLQNHGWRWKHDPHQGHGUHYLVHG
FRQWUDFWYDOXHDQGGHOLYHU\GDWH V
,I 2UGHU &RQWUDFW LQYROYHV WZR RU PRUH 8QLWV 6HWV /RWV WKHQ /LTXLGDWHG
'DPDJHV VKDOO EH IRU RUGHU FRQWUDFW YDOXH RI WKH GHOD\HG 8QLW 6HW /RW
SURYLGHG GHOLYHU\ VWLSXODWHG LQ WKH 2UGHU &RQWUDFW LV 8QLW 6HW /RW ZLVH
KRZHYHUWRWDO/'DPRXQWVKDOOEHOLPLWHGWRRIWRWDORUGHUYDOXH H[FOXGLQJ
WD[HVGXWLHVDQGIUHLJKW
3XUFKDVHU UHVHUYHV WKH ULJKW WR SXUFKDVH IURP HOVHZKHUH RQ DFFRXQW RI DQG DW WKH
ULVN DQG FRVW RI 6HOOHU&RQWUDFWRU ZLWK QRWLFH WR 6HOOHU&RQWUDFWRU WKH VWRUHV GXH
IRU GHOLYHU\ EXW QRW VR GHOLYHUHG RU WKHLU HTXLYDOHQW ZLWKRXW FDQFHOOLQJ WKH
2UGHU&RQWUDFW LQ UHVSHFW RI VWRUHV QRW \HW GXH IRU GHOLYHU\ 7KH PDQQHU DQG
PHWKRG RI VXFK SXUFKDVH VKDOO EH DW WKH GLVFUHWLRQ RI WKH 3XUFKDVHU 7KH DFWXDO
H[FHVVFRVWLQFXUUHGIRUVXFKSXUFKDVHVZLOOEHUHFRYHUHGIURPWKHELGGHU
3XUFKDVHU UHVHUYHV WKH ULJKW WR FDQFHO WKH 2UGHU&RQWUDFW RU D SRUWLRQ WKHUHRI IRU
WKH VWRUHV QRW VR GHOLYHUHG DW WKH ULVN DQG FRVW RI WKH 6HOOHU&RQWUDFWRU DQG WKH
6HOOHU&RQWUDFWRU VKDOO EH OLDEOH WR WKH 3XUFKDVHU IRU DQ\ H[FHVV FRVW WKHUHRI 7KH
DFWXDOH[FHVVFRVWLQFXUUHGIRUVXFKSXUFKDVHVZLOOEHUHFRYHUHGIURPWKHELGGHU
6HOOHU&RQWUDFWRU VKDOO FRQWLQXH SHUIRUPDQFH RI WKH 2UGHU&RQWUDFW XQGHU DOO
FLUFXPVWDQFHVWRWKHH[WHQWQRWFDQFHOOHG
,1685$1&(
,QVXUDQFHVKDOOEHDUUDQJHGE\%+(/
3DJHRI
*(1(5$/&21',7,216
(/(&752 2)&2175$&7 *&& *(1(5$/&200(5&,$/
7(506 &21',7,216
325&(/$,16 5HYLVLRQ1R5
',9,6,21 )RUVXSSO\DQG ,VVXHGRQ
VHUYLFHV
9HQGRUV VKDOO LQIRUP WKH 8QGHUZULWHUV DSSRLQWHG QRPLQDWHG E\ %+(/
3XUFKDVHU WKH GHWDLOV RI GLVSDWFKHV XQGHU LQWLPDWLRQ WR %+(/ VXFK DV /5
1R%/$:%DQGGDWH7UXFN1RYHVVHOGHWDLOVIOLJKWGHWDLOV321RDQGYDOXH
,QVXUDQFH DV DSSOLFDEOH IRU ILHOG ZRUN VXFK DV WKLUG SDUW\ OLDELOLW\ ZRUNPHQ
FRPSHQVDWLRQ 6HOOHU&RQWUDFWRU V RZQ 7RROV 3ODQWV DQG DXWRPRELOH VKDOO EH
DUUDQJHGE\WKH6HOOHU&RQWUDFWRU
,17(5&+$1*($%,/,7<$1'&+$1*(6
$OOVLPLODUFRPSRQHQWVRUSDUWVRIVLPLODUHTXLSPHQWVXSSOLHGE\6HOOHU&RQWUDFWRU
VKDOOEHLQWHUFKDQJHDEOHZLWKRQHDQRWKHU
(YHQWKRXJKDOOWKHZRUNDQGPDWHULDOVQHFHVVDU\IRUVDWLVIDFWRU\FRPSOHWLRQRIWKH
ZRUNV PD\ QRW EH GHWDLOHG LQ WKH VSHFLILFDWLRQV DQG VFKHGXOHV WKH FRVW ZLOO EH
FRQVLGHUHG WR EH ZLWKLQ WKH FRQWUDFW SULFH DQG QR H[WUD FKDUJHV VKDOO EH SD\DEOH
+RZHYHU LI WKHUH DUH VXEVWDQWLDO FKDQJHV LQ WKH VSHFLILFDWLRQV RI WKH VWRUHVSODQW
FRQVHTXHQWLDO FKDQJHV LQ SULFHV VKDOO EH PXWXDOO\ DJUHHG EHWZHHQ 3XUFKDVHU DQG
6HOOHU&RQWUDFWRU
3$&.,1*$1'',63$7&+0$5.,1*
3DFNLQJ VKDOO EH LQ FRQIRUPLW\ ZLWK VSHFLILFDWLRQV DQG VKDOO EH VXFK DV WR HQVXUH
SUHYHQWLRQ RI GDPDJHV FRUURVLRQ GHWHULRUDWLRQ VKRUWDJHV SLOIHUDJH DQG ORVV LQ
WUDQVLWRUVWRUDJH
,Q FDVH RI VKLSPHQW E\ VHD WKH SDFNLQJ VKDOO EH VHDZRUWK\ DQG RI LQWHUQDWLRQDO
VWDQGDUGV
3DFNLQJ /LVW VKDOO EH VXEPLWWHG DV SHU VWDQGDUG IRUPDW DORQJ ZLWK DGYDQFH VHW RI
GRFXPHQWVIRUFODLPLQJSD\PHQWZKLFKVKDOODOVRLQGLFDWH
D 3DFNLQJVL]H
E *URVVZHLJKWDQGQHWZHLJKWRIHDFKSDFNDJH
F &RQWHQWVRIWKHSDFNDJHZLWKTXDQWLW\RIHDFKLWHPVHSDUDWHO\
7KHQXPEHURIHDFKSDFNDJHLQDVKLSPHQWVKDOOEHVKRZQLQIUDFWLRQQXPHUDWRU
VKRZLQJ QXPEHU RI WKH SDFNDJH DQG WKH GHQRPLQDWRU VKRZLQJ WRWDO QXPEHU RI
SDFNDJHVLQDORW,FRQVLJQPHQW7KHSDFNDJHVQXPEHUVKDOOEHJHQHUDOO\SUHSDUHG
LQWKHVHTXHQFHLQZKLFKWKH\ZLOOEHUHTXLUHGIRUHUHFWLRQ
(DFKSDFNDJHGHOLYHUHGXQGHUWKH&RQWUDFWVKDOOEHPDUNHGE\DQGDWWKHH[SHQVH
RI WKH VXSSOLHU DQG VXFK PDUNLQJ PXVW EH GLVWLQFW DQG LQ (QJOLVK ODQJXDJH DOO
SUHYLRXV LUUHOHYDQW PDUNLQJV EHLQJ FDUHIXOO\ REOLWHUDWHG 6XFK PDUNLQJ VKDOO
3DJHRI
*(1(5$/&21',7,216
(/(&752 2)&2175$&7 *&& *(1(5$/&200(5&,$/
7(506 &21',7,216
325&(/$,16 5HYLVLRQ1R5
',9,6,21 )RUVXSSO\DQG ,VVXHGRQ
VHUYLFHV
VKRZWKHGHVFULSWLRQDQGTXDQWLW\RIFRQWHQWVWKHQDPHDQGDGGUHVVRIFRQVLJQHH
WKHJURVVZHLJKWDQGQHWZHLJKWRIWKHSDFNDJHWKHQDPHRIWKH&RQWUDFWRUZLWKD
GLVWLQFWLYHQXPEHURIPDUNVXIILFLHQWIRUSXUSRVHVRILGHQWLILFDWLRQ$OOPDUNLQJV
VKDOOEHFDUULHGRXWZLWKVXFKPDWHULDOVDVWRHQVXUHTXLFNQHVVRIGU\LQJIDVWQHVV
DQG LQGHOLELOLW\ (DFK HTXLSPHQW RU SDUWV RI HTXLSPHQW VKDOO ZKHQ VKLSSHG RU
UDLOHGRURWKHUZLVHGLVSDWFKHGEHWDJJHGZLWKUHIHUHQFHWRWKHDVVHPEO\GUDZLQJV
DQG FRUUHVSRQGLQJ SDUW QXPEHUV (DFK EDOH RU SDFNDJH VKDOO FRQWDLQ D SDFNLQJ
QRWH TXRWLQJ VSHFLILFDOO\ WKH QDPH RI WKH &RQWUDFWRU WKH QXPEHU DQG GDWH RI
FRQWUDFWDQGWKHQDPHRIWKHRIILFHSODFLQJWKHFRQWUDFWQRPHQFODWXUHRIWKHVWRUHV
DQG LQFOXGH D VFKHGXOH RI SDUWV IRU HDFK FRPSOHWH HTXLSPHQW JLYLQJ WKH SDUW
QXPEHUV ZLWK UHIHUHQFH WR WKH DVVHPEO\ GUDZLQJ DQG WKH TXDQWLW\ RI HDFK SDUW
GUDZLQJVQRVDQGWDJQXPEHUV
%HVLGHV ZKHUHYHU QHFHVVDU\ SDFNLQJ VKDOO EHDU D VSHFLDO PDUNLQJ ´ 723µ ´
%27720µ´'2127785129(5.((3'5<+$1'/(:,7+&$5(HWF
$OO SDFNLQJ FDVHV FRQWDLQHUV H[FOXGLQJ PDULQH FRQWDLQHU SDFNLQJ DQG RWKHU
VLPLODUPDWHULDOVVKDOOEHQHZ
1RWZLWKVWDQGLQJ DQ\WKLQJ VWDWHG LQ WKLV FODXVH WKH &RQWUDFWRU VKDOO EH HQWLUHO\
UHVSRQVLEOH IRU ORVV GDPDJH RU GHSUHFLDWLRQ RU GHWHULRUDWLRQ WR WKH PDWHULDOV
VXSSOLHVGXHWRIDXOW\DQGRULQVHFXUHSDFNLQJ
(DFKDQGHYHU\SDFNDJHER[VKDOOEHPDUNHGZLWKWKHIROORZLQJDVDPLQLPXP
L 1DPHDQGDGGUHVVRI&RQVLJQHH
LL 3URMHFWUHIHUHQFH
LLL &RQWUDFW1R
LY 3DFNLQJ1R ZKHQWKHUHDUHSDFNDJHV)RURQHFRQVLJQPHQW
Y 1HW:HLJKW*URVV:HLJKW
YL 3RUWRI/RDGLQJ
YLL 'HVWLQDWLRQ3RUW
YLLL 3DFNLQJ0DUN>V\PEROVLQGLFDWLQJ723DQGRWKHUVSHFLDOPDUNLQJVDVLQGLFDWHG
DERYH
L[ 7\SHRI(TXLSPHQW
( IRU(TXLSPHQWVXSSO\
3DJHRI
*(1(5$/&21',7,216
(/(&752 2)&2175$&7 *&& *(1(5$/&200(5&,$/
7(506 &21',7,216
325&(/$,16 5HYLVLRQ1R5
',9,6,21 )RUVXSSO\DQG ,VVXHGRQ
VHUYLFHV
7 IRU7RROV 7DFNOHV
6 IRU0DQGDWRU\6SDUHV
3$&.,1*)2563$5(6
7KHFRPPLVVLRQLQJVSDUHVVKDOOEHSURSHUO\SDFNHGVHSDUDWHO\LQVHSDUDWHER[DQG
HDFKVSDUHVKDOOEHSURSHUO\WDJJHGJLYLQJGHWDLOV WRPDWFKWKHGHVFULSWLRQJLYHQLQ
WKHSDFNLQJVOLS WRIDFLOLWDWHWKHLUSURSHULGHQWLILFDWLRQ7KUHHFRSLHVRISDFNLQJOLVW
LVWREHNHSWLQVLGHWKHER[DQGRQHFRS\LQDVSHFLDOSDFNHWDWWKHRXWHUVLGHRIWKH
%R[
7KH 0DQGDWRU\ VSDUHV VKDOO EH SURSHUO\ SDFNHG VHSDUDWHO\ LQ VHSDUDWH ER[
LQGLFDWLQJ0DQGDWRU\6SDUHVLQEROGOHWWHUVDQGHDFKVSDUHVKDOOEHSURSHUO\WDJJHG
JLYLQJ GHWDLOV LH LWHP QXPEHU RI WKH HTXLSPHQW LQ OLQH ZLWK WKH 8OWLPDWH
&XVWRPHU2ZQHU&RQWUDFW 1XPEHU SHULWHP WR PDWFK WKH GHVFULSWLRQ JLYHQ LQ
WKH SDFNLQJ VOLS WR IDFLOLWDWH WKHLU SURSHU LGHQWLILFDWLRQ E\ XOWLPDWH
&XVWRPHU2ZQHU7KUHHFRSLHVRISDFNLQJOLVWDORQJZLWK0DQXIDFWXULQJGUDZLQJ
QR5HIHUHQFH&DWDORJXHUHIHUHQFHHWFLVWREHNHSWLQVLGHWKHER[DQGRQHFRS\LQD
VSHFLDOSDFNHWDWWKHRXWHUVLGHRIWKH%R[
6725$*(,16758&7,216
6XFFHVVIXO WHQGHUHU VKDOO EH UHTXLUHG WR VXEPLW GHWDLOHG LQVWUXFWLRQV IRU VWRUDJH RI
VXSSOLHVZLWKLQWZRZHHNVRIGDWHRILVVXHRI/2,2UGHU&RQWUDFW
0$7(5,$/*22'65(&(,37&(57,),&$7(
)RU 6XSSOLHV 0DWHULDO*RRGV 5HFHLSW &HUWLILFDWH VKDOO EH DUUDQJHG E\ %+(/
9HQGRUWRSURYLGHFRS\RIUHFHLSWHG/5VWRHQDEOH%+(/WRREWDLQ05&IURPVLWH
3DJHRI
*(1(5$/&21',7,216
(/(&752 2)&2175$&7 *&& *(1(5$/&200(5&,$/
7(506 &21',7,216
325&(/$,16 5HYLVLRQ1R5
',9,6,21 )RUVXSSO\DQG ,VVXHGRQ
VHUYLFHV
GHVWLQDWLRQ LI VXFK VWRUHV RU SDUW SRUWLRQ RI FRQVLJQPHQW WKHUHRI LV QRW LQ
FRQIRUPLW\ZLWKWHUPVDQGFRQGLWLRQVRIRUGHUFRQWUDFWZKHWKHURQDFFRXQWRIDQ\
ORVVVWRUDJHGHWHULRUDWLRQRUGDPDJHEHIRUHGHVSDWFKRURWKHUZLVHZKDWVRHYHU
5HMHFWHGJRRGVRUPDWHULDOVVKDOOEHUHPRYHGE\6HOOHU&RQWUDFWRUZLWKLQDSHULRG
RI GD\V IURP WKH GDWH RI UHFHLSW RI QRWLFH RI VXFK UHMHFWLRQ 7KH H[SHQVHV WR EH
LQFXUUHGLQUHVSHFWWKHUHRIVKDOOEHERUQHHQWLUHO\E\WKH6HOOHU&RQWUDFWRU
6+257$*(6'$0$*(6
)256833/<3$&.$*(6
D 6KRUWDJHVLQVRXQGFDVHVVKDOOEHUHSOHQLVKHGIUHHRIFRVWE\WKHYHQGRUDVHDUO\
DVSRVVLEOH
E )RU VKRUWDJHVGDPDJHV GXULQJ WUDQVLW KDQGOLQJ DW VLWH YHQGRU VKDOO VXSSO\
UHSODFHPHQWVDVHDUO\DVSRVVLEOHDWWKHROGFRQWUDFWXDOUDWHVXSRQLQWLPDWLRQWR
YHQGRUZLWKLQRQHPRQWKVRIUHFHLSWHG/5
)25( &3$&.$*(6
$Q\VKRUWDJHVRUGDPDJHVGXULQJXQORDGLQJDQGKDQGOLQJDWVLWHLQFOXGLQJDWWKH
WLPHRIHUHFWLRQDQGFRPPLVVLRQLQJVKDOOEHPDGHJRRGE\WKH6HOOHU&RQWUDFWRUDW
KLVULVNDQGFRVWWRPHHWWKHSURMHFWVFKHGXOH,QFDVHRIIDXOWVGLVFUHSDQFLHVLQDQ\
PDWHULDO FRPSRQHQW VXEDVVHPEO\ DVVHPEO\ HWF WKH VDPH VKDOO EH
VXSSOLHGUHSOHQLVKHGIUHHRIFRVWWRHQDEOHWKHHTXLSPHQWWREHSXWWRVHUYLFH
&21),'(17,$/,7<
6HOOHU&RQWUDFWRUVKDOODWDOOWLPHVXQGHUWDNHWRPDLQWDLQFRPSOHWHFRQILGHQWLDOLW\
RI DOO GDWD LQIRUPDWLRQ VRIWZDUH GUDZLQJV GRFXPHQWV HWF EHORQJLQJ WR WKH
3DJHRI
*(1(5$/&21',7,216
(/(&752 2)&2175$&7 *&& *(1(5$/&200(5&,$/
7(506 &21',7,216
325&(/$,16 5HYLVLRQ1R5
',9,6,21 )RUVXSSO\DQG ,VVXHGRQ
VHUYLFHV
3XUFKDVHU DQG DOVR RI V\VWHPV SURFHGXUHV UHSRUWV LQSXW GRFXPHQWV PDQXDOV
UHVXOWV DQG DQ\ RWKHU FRPSDQ\ GRFXPHQWV GLVFXVVHG DQGRU ILQDOLVHG GXULQJ WKH
FRXUVHRIH[HFXWLRQRIRUGHUFRQWUDFW
'()$8/7%5($&+2)&2175$&7,162/9(1&<$1'5,6.385&+$6(
,I 6HOOHU&RQWUDFWRU IDLOV WR GHOLYHU JRRGV RU PDWHULDOV RU DQ\ LQVWDOOPHQW WKHUHRI
ZLWKLQWKHSHULRG V IL[HGIRUVXFKGHOLYHU\RUGHOLYHUVJRRGVRUPDWHULDOVQRWRIWKH
FRQWUDFWHGTXDOLW\DQGIDLOLQJWRDGKHUHWRWKHFRQWUDFWVSHFLILFDWLRQVRUDWDQ\WLPH
UHSXGLDWHV RU RWKHUZLVH DEDQGRQV WKH FRQWUDFW EHIRUH H[SLU\ RI VXFK SHULRG RU
UHIXVHV RU LV XQDEOH WR VXSSO\ JRRGV RU PDWHULDOV FRYHUHG E\ WKH 2UGHU&RQWUDFW
HLWKHU LQ ZKROH RU LQ SDUW RU RWKHUZLVH IDLOV WR SHUIRUP WKH 2UGHU&RQWUDFW RU
FRPPLWVDQ\EUHDFKRI2UGHU&RQWUDFWQRWKHUHLQVSHFLILFDOO\SURYLGHGIRURULQWKH
HYHQWRIWKHGHDWKRULQVDQLW\RULIWKH6HOOHU&RQWUDFWRUEHLQJDQLQGLYLGXDORULID
ILUPRQDSDUWQHUVKLSWKHUHRIVKDOODWDQ\WLPHEHDGMXGJHGLQVROYHQWRUVKDOOKDYH
DUHFHLYLQJRUGHUIRUDGPLQLVWUDWLRQRIKLVHVWDWHPDGHDJDLQVWKLPRUVKDOOWDNHDQ\
SURFHHGLQJIRUFRPSRVLWLRQXQGHUDQ\,QVROYHQF\$FWIRUWKHWLPHEHLQJLQIRUFHRU
PDNH DQ\ DVVLJQPHQW RI WKH 2UGHU&RQWUDFW RU HQWHU LQWR DQ\ DUUDQJHPHQW RU
FRPSRVLWLRQZLWKKLVFUHGLWRUVRUVXVSHQGSD\PHQWRULIWKHILUPLVGLVVROYHGXQGHU
WKH 3DUWQHUVKLS $FW RU LI WKH 6HOOHU&RQWUDFWRU EHLQJ D FRPSDQ\ LV ZRXQG XS
YROXQWDULO\RUE\RUGHURID&RXUWRUD5HFHLYHU/LTXLGDWRURU0DQDJHURQEHKDOIRI
WKHGHEHQWXUHKROGHUVDQGFUHGLWRUVLVDSSRLQWHGRUFLUFXPVWDQFHVVKDOOKDYHDULVHQ
ZKLFK HQWLWOHV WKH &RXUW RI GHEHQWXUH KROGHU DQG FUHGLWRUV WR DSSRLQW D UHFHLYHU
OLTXLGDWRU RU PDQDJHU WKH SXUFKDVHU ZLWKRXW SUHMXGLFH WR KLV ULJKW WR UHFRYHU DQ\
H[SHQVHVORVVHVRUGDPDJHVWRZKLFKWKH3XUFKDVHUPD\EHSXWWRLQFXURUVXVWDLQ
E\ UHDVRQ RI 6HOOHU&RQWUDFWRU V GHIDXOW RU EUHDFK RI 2UGHU&RQWUDFW 3XUFKDVHU
VKDOO EH HQWLWOHG WR FDQFHO WKH 2UGHU&RQWUDFW HLWKHU LQ ZKROH RU SRUWLRQ WKHUHRI
ZLWKRXW FRPSHQVDWLRQ WR 6HOOHU&RQWUDFWRU DQG LI WKH 3XUFKDVHU VR GHVLUHV PD\
SURFXUHXSRQVXFKWHUPVDQGLQVXFKPDQQHUDVGHHPHGDSSURSULDWHVWRUHVQRWVR
GHOLYHUHG RU RWKHUV RI VLPLODU GHVFULSWLRQ ZKHUH VWRUHV H[DFWO\ FRPSO\LQJ ZLWK
SDUWLFXODUV DUH QRW LQ WKH RSLQLRQ RI WKH 3XUFKDVHU ZKLFK VKDOO EH ILQDO UHDGLO\
SURFXUDEOH DW WKH ULVN DQG FRVW RI WKH 6HOOHU&RQWUDFWRU DQG WKH 6HOOHU&RQWUDFWRU
VKDOO EH OLDEOH WR WKH 3XUFKDVHU IRU DQ\ H[FHVV FRVWV SURYLGHG WKDW WKH
6HOOHU&RQWUDFWRU VKDOO FRQWLQXH WKH SHUIRUPDQFH RI WKH 2UGHU&RQWUDFW WR WKH
H[WHQWQRWFDQFHOOHGXQGHUWKHSURYLVLRQVRIWKLVFODXVH7KH6HOOHU&RQWUDFWRUVKDOO
RQQRDFFRXQWEHHQWLWOHGWRDQ\JDLQRQVXFKUHSXUFKDVHV
([FHSW IRU &ODXVH YHQGRU·V PD[LPXP OLDELOLW\ ZLOO EH OLPLWHG WR WKH WRWDO
FRQWUDFWYDOXHLQFOXGLQJWD[HVGXWLHVDQGIUHLJKW
3DJHRI
*(1(5$/&21',7,216
(/(&752 2)&2175$&7 *&& *(1(5$/&200(5&,$/
7(506 &21',7,216
325&(/$,16 5HYLVLRQ1R5
',9,6,21 )RUVXSSO\DQG ,VVXHGRQ
VHUYLFHV
5HFRYHU\RQDFFRXQWRISXUFKDVHVPDGHE\3XUFKDVHUDWWKHULVNDQGFRVWRI6HOOHU
&RQWUDFWRUVKDOOEHZRUNHGRXWDVIROORZV
([FHVVRIQHZSXUFKDVHFRVWRYHUROGSXUFKDVHFRVWZKHUHWKHWRWDOYDOXHRIQHZ32
LVPRUHWKDQWRWDOYDOXHRIROG32
7(50,1$7,212)&2175$&7
3XUFKDVHUVKDOOKDYHWKHULJKWWRFDQFHO2UGHU&RQWUDFWZKROO\RULQSDUWLQFDVH
WKH\ DUH REOLJHG WR GR VRRQ DFFRXQW RI DQ\ GHFOLQH GLPLQXWLRQ FXUWDLOPHQW RU
VWRSSDJH RI WKHLU EXVLQHVV DQG LQ WKDW HYHQW WKH 6HOOHU&RQWUDFWRU FRPSHQVDWLRQ
FODLPVKDOOEHVHWWOHGPXWXDOO\
3XUFKDVHU VKDOO KDYH WKH ULJKW WR FDQFHO RUGHUFRQWUDFW DW WKH ULVN DQG FRVW RI
6HOOHU&RQWUDFWRU LQ FDVH HLWKHU WKH 6HOOHU&RQWUDFWRU KLPVHOI RU DQ\ RI KLV
UHSUHVHQWDWLYHRUDJHQWLVIRXQGWRKDYHEHHQDSUHYLRXVHPSOR\HHRIWKH3XUFKDVHU
LPPHGLDWHO\ EHIRUH UHWLUHPHQW DQG KDV ZLWKLQ D SHULRG RI WZR \HDUV RI VXFK
UHWLUHPHQW DFFHSWHG WKH HPSOR\PHQW RI WKH 6HOOHU&RQWUDFWRU HLWKHU DV D
6HOOHU&RQWUDFWRU RU DV DQ HPSOR\HH ZLWKRXW KDYLQJ REWDLQHG SULRU SHUPLVVLRQ RI
3XUFKDVHU
,QFDVHRIFDQFHOODWLRQRIPDLQVXSSO\RUGHUFRQWUDFWDOORWKHUDVVRFLDWHGRUGHUV
FRQWUDFWVOLNHPDQGDWRU\VSDUHVUHFRPPHQGHGVSDUHV( &VXSHUYLVLRQRI( &
ZRXOGDOVRJHWFDQFHOOHG
75$16)(568%/(77,1*$66,*10(1768%&2175$&7,1*
6HOOHU&RQWUDFWRU VKDOO QRW VXEOHW WUDQVIHU RU DVVLJQ RUGHUFRQWUDFW RU DQ\ SDUW
WKHUHRI RU LQWHUHVW WKHUHLQ RU EHQHILW RU DGYDQWDJH WKHUHRI VDYH ZLWKRXW WKH SULRU
FRQVHQW LQ ZULWLQJ RI 3XUFKDVHU ,Q WKH HYHQW RI 6HOOHU&RQWUDFWRU VXEOHWWLQJ
WUDQVIHUULQJ RU DVVLJQLQJ RUGHUFRQWUDFW RU DQ\ SDUW WKHUHRI RU LQWHUHVW WKHUHLQ RU
EHQHILW RU DGYDQWDJH WKHUHRI ZLWKRXW VXFK SHUPLVVLRQ WKH 3XUFKDVHU VKDOO EH
HQWLWOHGWRFDQFHOWKH2UGHU&RQWUDFWDQGWRSXUFKDVHWKHVWRUHVIURPHOVHZKHUHDW
ULVNDQGFRVWVRI6HOOHU&RQWUDFWRUDQGWKH6HOOHU&RQWUDFWRUVKDOOEHOLDEOHIRUDQ\
ORVV RU GDPDJH ZKLFK 3XUFKDVHU PD\ VXVWDLQ LQ FRQVHTXHQFH RI RU DULVLQJ RXW RI
VXFKULVNSXUFKDVH
,I 6HOOHU&RQWUDFWRU LV DQ LQGLYLGXDO RU SURSULHWDU\ FRQFHUQ DQG WKH LQGLYLGXDO RU
WKH SURSULHWRU GLHV RU WKH SDUWQHUVKLS LV GLVVROYHG RU VXEVWDQWLDOO\ DIIHFWHG WKHQ
XQOHVV WKH 3XUFKDVHU LV VDWLVILHG WKDW OHJDO UHSUHVHQWDWLYH RI LQGLYLGXDO
VHOOHUFRQWUDFWRU RU SURSULHWRU RI SURSULHWDU\ FRQFHUQ DQG VXUYLYLQJ SDUWQHUV RI
SDUWQHUVKLSILUPDUHFDSDEOHRIFDUU\LQJRXWDQGFRPSOHWLQJWKHRUGHUFRQWUDFWWKH
3XUFKDVHUVKDOOEHHQWLWOHGWRFDQFHOWKHRUGHUFRQWUDFWDVWRLWVLQFRPSOHWHSRUWLRQ
3DJHRI
*(1(5$/&21',7,216
(/(&752 2)&2175$&7 *&& *(1(5$/&200(5&,$/
7(506 &21',7,216
325&(/$,16 5HYLVLRQ1R5
',9,6,21 )RUVXSSO\DQG ,VVXHGRQ
VHUYLFHV
DQG ZLWKRXW EHLQJ LQ DQ\ ZD\ OLDEOH WR SD\PHQW RI DQ\ FRPSHQVDWLRQ WR HVWDWH RI
VHOOHUFRQWUDFWRU DQGRU WR VXUYLYLQJ SDUWQHUV RI VHOOHU·VFRQWUDFWRU·V ILUP RQ
DFFRXQWRIFDQFHOODWLRQRIWKHRUGHUFRQWUDFW
'HFLVLRQ RI 3XUFKDVHU WKDW OHJDO UHSUHVHQWDWLYHV RI GHFHDVHG VHOOHUFRQWUDFWRU RU
VXUYLYLQJ SDUWQHUVRIWKH VHOOHU·VFRQWUDFWRU·V ILUP FDQ QRW FDUU\ RXW DQG FRPSOHWH
WKHRUGHUFRQWUDFWVKDOOEHILQDODQGELQGLQJRQWKHSDUWLHVKHUHWR
7HUPV DQG &RQGLWLRQV VKDOO QRW JHW DIIHFWHG LQ FDVH RI
PHUJHUDPDOJDPDWLRQWDNHRYHUUHDUUDQJHPHQWHWF
)25&(0$-(85(
1RWZLWKVWDQGLQJ DQ\WKLQJ FRQWDLQHG LQ &ODXVH LI DW DQ\ WLPH GXULQJ WKH
FRQWLQXDQFH RI WKH 2UGHU&RQWUDFW WKH SHUIRUPDQFH LQ ZKROH RU LQ SDUW E\ HLWKHU
SDUW\RIDQ\REOLJDWLRQVXQGHUWKH2UGHU&RQWUDFWVKDOOEHSUHYHQWHGRUGHOD\HGE\
UHDVRQRIDQ\ZDUKRVWLOLWLHVDFWVRIWKHSXEOLFHQHP\UHVWULFWLRQVE\*RYWRI,QGLD
FLYLO FRPPRWLRQ VDERWDJH ILUHV IORRGV H[SORVLRQ HSLGHPLFV TXDUDQWLQH
UHVWULFWLRQVVWULNHORFNRXWVRUDFWVRI*RG KHUHLQDIWHUUHIHUUHGWRDV HYHQW WKHQ
SURYLGHGQRWLFHRIWKHKDSSHQLQJRIVXFKHYHQWLVJLYHQE\HLWKHUSDUW\WRWKHRWKHU
ZLWKLQ ILIWHHQ GD\V IURP WKH GDWH RI RFFXUUHQFH WKHUHRI QHLWKHU SDUW\ VKDOO E\
UHDVRQRIVXFKHYHQWEHHQWLWOHGWRWHUPLQDWHWKH2UGHU&RQWUDFWQRUVKDOOKDYHDQ\
FODLPIRUGDPDJHVDJDLQVWHDFKRWKHULQUHVSHFWRIVXFKQRQSHUIRUPDQFHDQGGHOD\
LQ SHUIRUPDQFH 3HUIRUPDQFH XQGHU WKH 2UGHU&RQWUDFW VKDOO EH UHVXPHG
LPPHGLDWHO\DIWHUVXFKHYHQWKDVFRPHWRDQHQGRUFHDVHGWRH[LVWDQGGHFLVLRQRI
3XUFKDVHU DV WR ZKHWKHU WKH GHOLYHULHV KDYH WR EH UHVXPHG RU QRW VKDOO EH ILQDO
FRQFOXVLYHDQGELQGLQJRQWKHSDUWLHVKHUHWR
,Q WKH HYHQW RI WKH SDUWLHV KHUHWR QRW DEOH WR DJUHH WKDW D IRUFH PDMHXUH HYHQW KDV
RFFXUUHG WKH SDUWLHV VKDOO VXEPLW WKH GLVSXWHV IRU UHVROXWLRQ SXUVXDQW WR WKH
SURYLVLRQV KHUHXQGHU SURYLGHG WKDW WKH EXUGHQ RI SURRI DV WR ZKHWKHU D IRUFH
PDMHXUHHYHQWKDVRFFXUUHGVKDOOEHXSRQWKHSDUW\FODLPLQJVXFKDQHYHQW
1RWZLWKVWDQGLQJ WKH DERYH SURYLVLRQV 3XUFKDVHU VKDOO UHVHUYH WKH ULJKW WR FDQFHO
WKH 2UGHU&RQWUDFW ZKROO\ RU SDUWO\ LQ RUGHU WR PHHW WKH RYHUDOO VFKHGXOH DQG
PDNHDOWHUQDWLYHDUUDQJHPHQWVIRUFRPSOHWLRQRIGHOLYHU\DQGRWKHUVFKHGXOHV
,1'(01,),&$7,21
6HOOHU&RQWUDFWRUVKDOOIXOO\LQGHPQLI\DQGNHHSLQGHPQLILHGWKH3XUFKDVHUDJDLQVW
DOOFODLPVRIZKDWVRHYHUQDWXUHDULVLQJGXULQJWKHFRXUVHDQGRXWRIWKHH[HFXWLRQRI
WKLV2UGHU&RQWUDFW
3DJHRI
*(1(5$/&21',7,216
(/(&752 2)&2175$&7 *&& *(1(5$/&200(5&,$/
7(506 &21',7,216
325&(/$,16 5HYLVLRQ1R5
',9,6,21 )RUVXSSO\DQG ,VVXHGRQ
VHUYLFHV
6(77/(0(172)',6387(6
([FHSW DV RWKHUZLVH VSHFLILFDOO\ SURYLGHG LQ WKH 2UGHU&RQWUDFW DOO GLVSXWHV
FRQFHUQLQJTXHVWLRQVRIWKHIDFWVDULVLQJXQGHUWKH2UGHU&RQWUDFWVKDOOEHGHFLGHG
E\ 3XUFKDVHU VXEMHFW WR ZULWWHQ DSSHDO E\ WKH 6HOOHU&RQWUDFWRU WR WKH 3XUFKDVHU
ZKRVHGHFLVLRQVKDOOEHILQDO
$Q\GLVSXWHRUGLIIHUHQFHVKDOOEHWRWKHH[WHQWSRVVLEOHVHWWOHGDPLFDEO\EHWZHHQ
WKH SDUWLHV KHUHWR IDLOLQJ ZKLFK WKH GLVSXWHG LVVXHV VKDOO EH VHWWOHG WKURXJK
DUELWUDWLRQ
6HOOHU&RQWUDFWRUVKDOOFRQWLQXHWRSHUIRUPWKHRUGHUFRQWUDFWSHQGLQJVHWWOHPHQW
RIGLVSXWH V
([FHSW DV SURYLGHG HOVHZKHUH LQ WKLV &RQWUDFW LQ FDVH DPLFDEOH VHWWOHPHQW LV QRW
UHDFKHGEHWZHHQWKHSDUWLHVLQUHVSHFWRIDQ\GLVSXWHRUGLIIHUHQFHDULVLQJRXWRI
WKH IRUPDWLRQ EUHDFK WHUPLQDWLRQ YDOLGLW\ RU H[HFXWLRQ RI WKH &RQWUDFW RU WKH
UHVSHFWLYHULJKWVDQGOLDELOLWLHVRIWKHSDUWLHVRULQUHODWLRQWRLQWHUSUHWDWLRQRIDQ\
SURYLVLRQ RI WKH FRQWUDFW RU LQ DQ\ PDQQHU WRXFKLQJ XSRQ WKH &RQWUDFW WKHQ
HLWKHU SDUW\ PD\ E\ D QRWLFH LQ ZULWLQJ WR WKH RWKHU SDUW\ UHIHU VXFK GLVSXWH RU
GLIIHUHQFH WR WKH VROH DUELWUDWLRQ RI DQ DUELWUDWRU DSSRLQWHG E\ KHDG RI WKH %+(/
8QLW5HJLRQ'LYLVLRQLVVXLQJWKH&RQWUDFW
7KH$UELWUDWRUVKDOOSDVVDUHDVRQHGDZDUGDQGWKHDZDUGRIWKH$UELWUDWRUVKDOO
EHILQDODQGELQGLQJXSRQWKHSDUWLHV
6XEMHFW WR WKH DUELWUDWLRQ LQ WHUPV RI &ODXVH DERYH WKH &RXUWV DW %DQJDORUH
VKDOO KDYH H[FOXVLYH MXULVGLFWLRQ RYHU DQ\ PDWWHU DULVLQJ RXW RI RU LQ FRQQHFWLRQ
ZLWKWKLV&RQWUDFW
1RWZLWKVWDQGLQJWKHH[LVWHQFHRUDQ\GLVSXWHRUGLIIHUHQFHVDQGRUUHIHUHQFHIRU
WKHDUELWUDWLRQWKH&RQWUDFWRUVKDOOSURFHHGZLWKDQGFRQWLQXHZLWKRXWKLQGUDQFH
WKH SHUIRUPDQFH RI LWV REOLJDWLRQV XQGHU WKLV FRQWUDFW ZLWK GXH GLOLJHQFH DQG
H[SHGLWLRQLQDSURIHVVLRQDOPDQQHUH[FHSWZKHUHWKHFRQWUDFWKDVEHHQWHUPLQDWHG
E\HLWKHUSDUW\LQWHUPVRIWKLV&RQWUDFW
3DJHRI
*(1(5$/&21',7,216
(/(&752 2)&2175$&7 *&& *(1(5$/&200(5&,$/
7(506 &21',7,216
325&(/$,16 5HYLVLRQ1R5
',9,6,21 )RUVXSSO\DQG ,VVXHGRQ
VHUYLFHV
,Q WKH HYHQW RI DQ\ GLVSXWH RU GLIIHUHQFH UHODWLQJ WR WKH LQWHUSUHWDWLRQ DQG
DSSOLFDWLRQ RI WKH SURYLVLRQV RI WKH &RQWUDFW VXFK GLVSXWH RU GLIIHUHQFH VKDOO EH
UHIHUUHGE\HLWKHUSDUW\IRUDUELWUDWLRQWRWKHVROHDUELWUDWRULQWKH'HSDUWPHQWRI
SXEOLF(QWHUSULVHVWREHQRPLQDWHGE\WKHVHFUHWDU\WRWKHJRYHUQPHQWRI,QGLDLQ
FKDUJH RI WKH 'HSDUWPHQW RI SXEOLF HQWHUSULVHV 7KH DUELWUDWLRQ DQG &RQFLOLDWLRQ
DFW VKDOO QRW EH DSSOLFDEOH WR DUELWUDWLRQ XQGHU WKLV FODXVH WKH DZDUG RI WKH
DUELWUDWRUVKDOOEHELQGLQJXSRQWKHSDUWLHVWRWKHGLVSXWHSURYLGHGKRZHYHUDQ\
SDUW\ DJJULHYHG E\ VXFK DZDUG PD\ PDNH IXUWKHU UHIHUHQFH IRU VHWWLQJ DVLGH RU
UHYLVLRQRIWKHDZDUGWRWKHODZVHFUHWDU\GHSDUWPHQWRIOHJDODIIDLUV0LQLVWU\RI
ODZ DQG MXVWLFH *RYHUQPHQW RI ,QGLD 8SRQ VXFK UHIHUHQFH WKH GLVSXWH VKDOO EH
GHFLGHGE\WKHODZVHFUHWDU\RUWKHVSHFLDOVHFUHWDU\RU$GGLWLRQDOVHFUHWDU\ZKHQ
VR DXWKRUL]HG E\ WKH ODZ VHFUHWDU\ ZKRVH GHFLVLRQ VKDOO ELQG WKH SDUWLHV KHUHWR
ILQDOO\ DQG FRQFOXVLYHO\ 7KH SDUWLHV WR WKH GLVSXWH ZLOO VKDUH HTXDOO\ WKH FRVW RI
DUELWUDWLRQDVLQWLPDWHGE\WKH$UELWUDWRUµ
/$:6*29(51,1*7+(&2175$&7
&RQWUDFW LQFOXGLQJ DOO PDWWHUV FRQQHFWHG ZLWK FRQWUDFW VKDOO EH JRYHUQHG E\ WKH
,QGLDQ/DZERWKVXEVWDQWLYHDQGSURFHGXUDOIRUWKHWLPHEHLQJLQIRUFHLQFOXGLQJ
PRGLILFDWLRQWKHUHWRDQGVKDOOEHVXEMHFWWRWKHH[FOXVLYHMXULVGLFWLRQRIWKH,QGLDQ
FRXUWVDW%DQJDORUH
-85,6',&7,212)&2857
&RXUWV DW %DQJDORUH VKDOO KDYH H[FOXVLYH MXULVGLFWLRQ WR GHFLGH WKH GLVSXWH LI DQ\
DULVLQJ RXW RI RU LQ UHVSHFW RI WKH FRQWUDFW V WR ZKLFK WKHVH FRQGLWLRQV DUH
DSSOLFDEOH
25'(52)35(&('(1&(
,QWKHHYHQWRIDQ\DPELJXLW\RUFRQIOLFWEHWZHHQWKH7HQGHU'RFXPHQWVWKHRUGHU
RISUHFHGHQFHVKDOOEHLQWKHRUGHUEHORZ
1RWLFH,QYLWLQJ7HQGHU 1,7
3ULFH6FKHGXOH
3DJHRI
*(1(5$/&21',7,216
(/(&752 2)&2175$&7 *&& *(1(5$/&200(5&,$/
7(506 &21',7,216
325&(/$,16 5HYLVLRQ1R5
',9,6,21 )RUVXSSO\DQG ,VVXHGRQ
VHUYLFHV
6SHFLDO&RQGLWLRQVRI&RQWUDFW 6&&
7HFKQLFDOVSHFLILFDWLRQ VFRSHRIZRUN
*HQHUDO&RQGLWLRQVRI&RQWUDFW *&&
6833/,(53(5)250$1&(021,725,1*$1'5$7,1*6<67(0
'($/,1*:,7+%$11('6833/,(56&2175$&7256,1%+(/
2IIHUV RI WKH ELGGHUV ZKR DUH RQ WKH EDQQHG OLVW DV DOVR WKH RIIHUV RI WKH ELGGHUV
ZKR HQJDJH WKH VHUYLFHV RI WKH EDQQHG ILUPV VKDOO EH UHMHFWHG 7KH OLVW RI EDQQHG
ILUPVLVDYDLODEOHRQ%+(/ZHEVLWHZZZEKHOFRP
3DJHRI
ANNEXURE
No. DESCRIPTION
IX INTEGRITY PACT
XX
ANNEXURE-I
(To be filled up by the Bidder)
Ref. No.: Date :
M/s Bharat Heavy Electricals Ltd.,
Electroporcelains Division
Prof. CNR Rao Circle
Malleshwaram
Bangalore - 560012
Attention : Shri
Dear Sir,
2. If the work or any part thereof is awarded to us, we undertake to submit security-
cumcontract performance bank guarantee as per your requirement.
3. We have annexed to this tender the following documents:-
Part-l (Techno Commercial Bid) - in a properly sealed cover (uploaded in website in case
of e-procurement).
Part-ll (Price Bid along with Priced Annexure-II) - in a separate, properly sealed cover,
in the format given by BHEL (uploaded in website in case of e-procurement).
Thanking you,
Yours faithfully,
DECLARATION
It is hereby declared that the original/ revised* price bid for ________________________
It is also agreed that no further chance for seeking clarification/ confirmation to any missing
point will be necessary.
Absence of itemized prices against some items does not mean that they are not included.
Even though itemized prices are given for major items, those items which are not specially
shown, are also included to meet the entire system as per BHEL requirements.
Forwarded to:
BHARAT HEAVY ELECTRICALS LTD
Electroporcelains Division
Prof. CNR Rao Circle
Malleshwaram
Bangalore - 560012
* (Please delete whichever is not applicable
ANNEXURE - IV
PERFORMANCE GUARANTEE
( PROFORMA OF BANK GUARANTEE )
a company registered under the companies Act, 1956 having its registered office at BHEL
House at Siri Fort , New Delhi-100 049 and its Electroporcelains Division at Malleswaram,
Bangalore-12 (hereinafter referred to as the 'Company' Which term shall include its
successors and assigns):
AND WHEREAS the supplier has agreed to supply the materials and carryout the works as
detailed and in accordance with the terms set out in the said order.
AND WHEREAS the Contract inter-alia provides that the SUPPLIER shall furnish to the
Company a sum of Rs .. . (Rupees .) towards
security deposit for due and faithful performance of the CONTRACT in the form and
manner specified therein.
AND WHEREAS the SUPPLIER has approached the GUARANTOR and in consideration of
the arrangement arrived at between the SUPPLIER and the GUARANTOR, the
GUARANTOR has agreed to give the Guarantee as hereinafter mentioned in favour of the
COMPANY.
NOW THIS DEED WITNESSES THAT in pursuance of the above said agreement, the
guarantor hereby agrees and covenants with company is as follows :-
1) That during the period this contract of Guarantee remains effectual, the guarantor shall
be liable in respect of the amount due and owing to the company in respect of the
payments to the extent of Rs _______________ (in words)
_________________________________________________________ against any loss or
damage caused to or suffered by the company by reasons of any breach of the terms of
the said Purchase order by the supplier.
2) The Guarantor hereby undertakes to pay the amounts due and payable under this
guarantee without any demur, merely on demand from the company intimating that the
amount claimed is due by way of loss or damage caused to or suffered or would be
caused or suffered by the supplier of any terms contained in the said Purchase order.
Any such demand made on the guarantor shall be conclusive as regards the amount due
and payable by the Guarantor irrespective of the fact whether the Supplier admits or
denies.
3) The Guarantor further agrees that the agreement herein contained shall remain in force
and effect till all the supplies to be made / Works to be performed / Services to be
rendered under the said Purchase order are completed to the entire satisfaction of the
company or till company certifies that the terms and conditions of the said order have
been fully and properly carried out by the said supplier and accordingly discharges the
Guarantee. Unless a demand or claim under this guarantee is made on the guarantor in
writing on or before the expiry of claim period indicated in clause 6 below , the guarantor
shall be discharged from all the liability under this guarantee thereafter.
4) The guarantor further agrees with the company that the company shall have the fullest
liberty without the consent of the guarantor and without effecting in any manner the
obligations of the guarantor hereunder to vary any of the terms of the said order or
extend the time of performance by the said supplier from time to time or refrain from
exercising the power exercisable by the company against the said supplier or to forebear
or omit to enforce any of the terms and conditions relating to the said order, and the
guarantor shall not be relieved of its liability in whole or in part , by reason of any act,
commission or forbearance on the part of the company or by reason of any such variation,
or extension being granted to the said supplier or by reason of any such matter or thing
whatsoever which under the law relating to sureties would but for this provision have
effect of so relieving the guarantor.
5) The guarantor undertakes not to revoke this guarantee during the period it is in force
except with the previous consent of the COMPANY in writing, and agree that any
liquidation or winding up or dissolution or any change in the constitution of the
SUPPLIER or the GUARANTOR shall not discharge the GUARANTORs liability
hereunder.
6) Notwithstanding anything herein above contained, the liability of the guarantor under
these presents is restricted to Rs___________________. The guarantee shall be in force till
its expiry on __________________. Unless a demand is made on the guarantor within
THREE months from the date of expiry, all the liability of the guarantor under this
guarantee shall stand fully discharged. The decision of the claimant in regard to breach
of contract is final and binding on the Bank.
1. BHEL shall deal directly with foreign vendors, wherever required, for procurement of
goods/ services. However, if the foreign Principal desires to avail the services of an
Indian Agent, then the foreign Principal should ensure compliance to regulatory
guidelines which require mandatory submission of an Agency Agreement.
2. It shall be incumbent on the Indian Agent and the foreign Principal to adhere to the
relevant guidelines of Government of India, issued from time to time.
3. An Indian Agent of foreign Origin Equipment Manufacturer (OEM)/ Principal is an
individual, a partnership, an association of persons, a private or public company, that
carries out specific obligation(s) towards processing of BHEL tender or finalization or
execution of BHELs contract on behalf of the foreign supplier.
4. The Agency Agreement should specify the precise relationship between the foreign
OEM/ Principal and their Indian Agent, and their mutual interest in the business. All
services to be rendered by the Agent/ Associate, whether of general nature or in
relation to the particular contract, must be clearly stated by the foreign Supplier/ Indian
Agent. Any payment which the Agent or Associate receives in India or abroad from the
OEM/ Principal, whether as commission or as general retainer fee should be brought
on record in the Agreement and be made explicit in order to ensure compliance to laws
of the country.
5. Any agency commission to be paid by BHEL to the Indian Agent shall be in Indian
currency only.
6. Tax deduction at source is applicable to the agency commission paid to the Indian
Agent as per the prevailing rules.
7. In absence of any Agency Agreement, BHEL shall not deal with any Indian Agent
(authorized representative/ associate/ consultant, or by whatever name called) and
shall deal directly with the foreign OEM/ Principal only for all correspondence and
business purposes.
8. In a tender, either the Indian Agent on behalf of the foreign OEM/ Principal or foreign
OEM/ Principal itself can bid but both cannot bid simultaneously for the same item/
product in the same tender.
9. If an Agent submits bid on behalf of one OEM/ Principal, the same Agent shall not
submit a bid on behalf of another OEM/ Principal in the same tender for the same item/
product.
10. The Guidelines for Indian Agents of Foreign Suppliers at AnnexureA shall apply in
all such cases.
11. The supply and execution of Purchase Order/ Contract (including indigenous
supplies/ services) shall be in the scope of foreign OEM/ Principal. The foreign OEM/
Principal should submit their offer inclusive of all indigenous supplies/ services and
evaluation will be based on the Total Cost to BHEL. In case foreign OEM/ Principal
recommends placement of order(s) towards indigenous portion of supplies/ services
on Indian supplier(s)/ agent on their behalf, the credentials/ capacity/ capability of the
Indian supplier(s)/ agent to make the supplies/ services shall be checked by BHEL as
per its extant guidelines of Supplier Evaluation, Approval & Review Procedure
(SEARP) before opening of price bids. In this regard, details may be checked as per
AnnexureB. It will be responsibility of the foreign OEM/ Principal to get acquainted
with the evaluation requirements of Indian supplier/ agent as per SEARP available on
www.bhel.com.
The responsibility for successful execution of the contract (including indigenous supplies/
services) lies with the foreign OEM/ Principal. All bank guarantees to this effect shall be in
the scope of the foreign OEM/ Principal.
AnnexureA
1.0 There shall be compulsory registration of agents for all Global (Open) Tenders and
Limited Tenders. An agent who is not registered with BHEL shall apply for registration
in the registration form in line with SEARP.
1.1 Registered agents will file an authenticated photocopy duly attested by a Notary
Public/ Original certificate of the Principal confirming the Agency Agreement and
giving the status being enjoyed by the Agent and the commission/ remuneration/
salary/ retainership being paid by the Principal to the Agent before placement of order
by BHEL.
1.2 Wherever the Indian representatives have communicated on behalf of their Principals
and the foreign parties have stated that they are not paying any commission to the
Indian agents, and the Indian representative is working on the basis of salary or as
retainer, a written declaration to this effect should be submitted by the party (i.e.
Principal) before finalizing the order.
2.0 Disclosure of particulars of agents/ representatives in India (if any)
2.1 Tenderers of Foreign nationality shall furnish the following details in their offers:
2.1.1 The Bidder(s)/ Contractor(s) of foreign origin shall disclose the name and
address of the agents/ representatives in India, if any, and the extent of
authorization and authority given to commit the Principals. In case the agent/
representative be a foreign Company, it shall be confirmed whether it is existing
Company and details of the same shall be furnished.
2.1.2 The amount of commission/ remuneration included in the quoted price(s) for such
agents/ representatives in India.
2.1.3 Confirmation of the Tenderer that the commission/ remuneration, if any, payable
to his agents/ representatives in India, may be paid by BHEL in Indian Rupees
only.
2.2 Tenderers of Indian Nationality shall furnish the following details in their offers:
2.2.1 The Bidder(s)/ Contractor(s) of Indian Nationality shall furnish the name and
address of the foreign Principals, if any, indicating their nationality as well as
their status, i.e. whether manufacturer or agents of manufacturer holding the
Letter of Authority of the Principal specifically authorizing the agent to make an
offer in India in response to tender either directly or through the agents/
representatives.
2.2.2 The amount of commission/ remuneration included in the price (s) quoted by the
Tenderer for himself.
2.2.3 Confirmation of the foreign principals of the Tenderer that the commission/
remuneration, if any, reserved for the Tenderer in the quoted price(s), may be paid
by BHEL in India in equivalent Indian Rupees on satisfactory completion of the
Project or supplies of Stores and Spares in case of operation items.
2.3 In either case, in the event of contract materializing, the terms of payment will provide
for payment of the commission/ remuneration, if any payable to the agents/
representatives in India in Indian Rupees, on expiry of 90 days after the discharge of the
obligations under the contract.
2.4 Failure to furnish correct and detailed information as called for in paragraph 2.0 above
will render the concerned tender liable to rejection or in the event of a contract
materializing, the same liable to termination by BHEL. Besides this, there would be a
penalty of banning business dealings with BHEL or damage or payment of a named
sum.
AnnexureB
This format is applicable only to Indian Suppliers/ Agents supplying indigenous portion
of Foreign Purchases.
Detail
SEARP
(SRF)
Clause No.
3.2
Nature of Business
9.6
Sales/ Turnover details of last 3 years (or from the date of incorporation,
whichever is less)
GENERAL CONDITIONS
ELECTRO- OF CONTRACT (GCC) ANNEXURES
PORCELAINS Revision No. R0 Issued on
DIVISION (For supply and 14.03.2017
services)
ANNEXURE- VI
Quarter Seller Invoice Invoice Net Tax Commodity Purchase Order Purchase
Tin No Date Value amount Description No Order Dt
Q-1
Quarter Seller Invoice Invoice Net Tax Commodity Purchase Order Purchase
Tin No Date Value amount Description No Order Dt
Q-2
Quarter Seller Invoice Invoice Net Tax Commodity Purchase Order Purchase
Tin No Date Value amount Description No Order Dt
Q-3
Quarter Seller Invoice Invoice Net Tax Commodity Purchase Order Purchase
Tin No Date Value amount Description No Order Dt
Q-4
GENERAL CONDITIONS
ELECTRO- OF CONTRACT (GCC) ANNEXURES
PORCELAINS Revision No. R0 Issued on
DIVISION (For supply and 14.03.2017
services)
ANNEXURE-VII
NEFT Application Form
Vendors Name
Vendor Address
BANK NAME
BANK BRANCH
BANK ADDRESS
BANK PHONE
ACCOUNT NAME
ACCOUNT TYPE
ACCOUNT NO.
PAN NO.
GENERAL CONDITIONS
ELECTRO- OF CONTRACT (GCC) ANNEXURES
PORCELAINS Revision No. R0 Issued on
DIVISION (For supply and 14.03.2017
services)
TIN NO.
E-MAIL ID
Above details are to be submitted on company's letterhead. The details may either be
attested by vendor's bankers or accompanied by a cancelled cheque leaf with
IFSC code & A/c no. Printed on it.
Undertaking to report immediately any changes in the above to be submitted in
company's letterhead.
GENERAL CONDITIONS
ELECTRO- OF CONTRACT (GCC) ANNEXURES
PORCELAINS Revision No. R0 Issued on
DIVISION (For supply and 14.03.2017
services)
ANNEXURE-VIII
LOADING CRITERIA
No deviations in GCC terms and conditions are generally acceptable, and bids with
deviations are liable to be rejected. However, in exceptional circumstances, BHEL may
accept deviations with Loading as given below:
A) PAYMENT TERMS
1. Payment will be released within 45 days after receipt of complete documents as per
order/ contract.
Loading will be done for vendors seeking earlier payment w.r.t. above, for the value and
the period of deviation, as per Clause 17.0 of Instructions to Bidders.
However, for Foreign Purchase, CAD at sight and Confirmed LCs are not permitted.
B) BANK GUARANTEE `
C) LIQUIDATED DAMAGES
If maximum limit asked for is 10% or 5% of Undelivered Portion 10% value of the total
quoted price including taxes, duties & freight.
If maximum limit asked is less than 10 % of contract value loading shall be to the extent to
which not agreed by bidder (at offered value) .
GENERAL CONDITIONS
ELECTRO- OF CONTRACT (GCC) ANNEXURES
PORCELAINS Revision No. R0 Issued on
DIVISION (For supply and 14.03.2017
services)
ANNEXURE-X
GENERAL CONDITIONS
ELECTRO- OF CONTRACT (GCC) ANNEXURES
PORCELAINS Revision No. R0 Issued on
DIVISION (For supply and 14.03.2017
services)
ANNEXURE-XI
Terms & Conditions of Reverse Auction
Against this enquiry for the subject item/ system with detailed scope of supply as per
enquiry specifications, BHEL may resort to REVERSE AUCTION PROCEDURE i.e., ON
LINE BIDDING (THROUGH A SERVICE PROVIDER). The philosophy followed for
reverse auction shall be English Reverse (No ties).
1 For the proposed reverse auction, technically and commercially acceptable bidders
only shall be eligible to participate.
2 Those bidders who have given their acceptance for Reverse Auction (quoted against
this tender enquiry) will have to necessarily submit online sealed bid in the Reverse
Auction. Non-submission of online sealed bid by the bidder for any of the eligible
items for which techno-commercially qualified, will be considered as tampering of the
tender process and will invite action by BHEL as per extant guidelines in vogue.
3 BHEL will engage the services of a service provider who will provide all necessary
training and assistance before commencement of on line bidding on internet.
4 In case of reverse auction, BHEL will inform the bidders the details of Service Provider
to enable them to contact & get trained.
5 Business rules like event date, time, bid decrement, extension etc. also will be
communicated through service provider for compliance.
6 Bidders have to fax the Compliance form (annexure IV) before start of Reverse auction.
Without this, the bidder will not be eligible to participate in the event.
7 In line with the NIT terms, BHEL will provide the calculation sheet (e.g., EXCEL sheet)
which will help to arrive at Total Cost to BHEL like Packing & forwarding charges,
Taxes and Duties, Freight charges, Insurance, Service Tax for Services and loading
factors (for non-compliance to BHEL standard Commercial terms & conditions) etc.
for each of the bidder to enable them to fill-in the price and keep it ready for keying in
during the Auction.
GENERAL CONDITIONS
ELECTRO- OF CONTRACT (GCC) ANNEXURES
PORCELAINS Revision No. R0 Issued on
DIVISION (For supply and 14.03.2017
services)
10 The lowest bidder has to fax/e-mail the duly signed and filled-in prescribed format
for price breakup including that of line items, if required, (Annexure VII) as provided
on case-to-case basis to Service provider within two working days of Auction without
fail.
11. In case BHEL decides not to go for Reverse Auction procedure for this tender enquiry,
the Price bids and price impacts, if any, already submitted and available with BHEL
shall be opened as per BHELs standard practice.
12. Bidders shall be required to read the Terms and Conditions section of the auctions
site of Service provider, using the Login IDs and passwords given to them by the service
provider before reverse auction event. Bidders should acquaint themselves of the
Business Rules of Reverse Auction, which will be communicated before the Reverse
Auction.
13. If the Bidder or any of his representatives are found to be involved in Price
manipulation/ cartel formation of any kind, directly or indirectly by communicating
with other bidders, action as per extant BHEL guidelines, shall be initiated by BHEL and
the results of the RA scrapped/ aborted.
14. The Bidder shall not divulge either his Bids or any other exclusive details of BHEL to
any other party.
15. In case BHEL decides to go for reverse auction, the H1 bidder(s) (whose quote is highest
in online sealed bid) may not be allowed to participate in further RA process.
16. Updates:-
16.1 BHEL reserves the right to go for Reverse Auction (RA) (GUIDELINES as available on
www.bhel.com) instead of opening the sealed envelope price bid, submitted by the bidder.
This will be decided after techno-commercial evaluation. Bidders to give their acceptance with
the offer for participation in RA. Non-acceptance to participate in RA may result in non-
consideration of their bids, in case BHEL decides to go for RA.
GENERAL CONDITIONS
ELECTRO- OF CONTRACT (GCC) ANNEXURES
PORCELAINS Revision No. R0 Issued on
DIVISION (For supply and 14.03.2017
services)
Those bidders who have given their acceptance to participate in Reverse Auction will have to
necessarily submit Process Compliance Form (to the designated service provider) as well as
online sealed bid in the Reverse Auction. Non-submission of Process Compliance Form or
Online Sealed Bid by the agreed bidders will be considered as tempering of the tender process
& will invite action by BHEL as per the extent guidelines for suspension of business dealings
with suppliers/contractors (as available on www.bhel.com ).
The bidders have to necessarily submit the online sealed bid less than or equal to their envelope
sealed price bid already submitted to BHEL along with the offer. The envelope sealed price bid
of successful L-1 bidder in RA, if conducted, shall also be opened after RA & the order will be
placed on lower of the two bids (RA closing price & envelope sealed price) thus obtained. The
bidder having submitted this offer specifically agrees to this condition & undertakes to execute
the contract on thus awarded rates.
If it is found that L-1 bidder has quoted higher in online sealed bid in comparison to envelope
sealed bid for any item, the bidder will be issued a warning letter to this effect. However, if the
same bidder again defaults on this count in any subsequent tender in the unit, it will be consider
as fraud & will invite action by BHEL as per the extent guidelines for suspension of business
dealings with the suppliers/contractors (as available on www.bhel.com ).
As a reminder to bidders, system will flash the following message (in RED color) during the
course of online sealed bid:
Bidders to submit online sealed bid less than or equal to their envelope sealed bid already
submitted to BHEL
GENERAL CONDITIONS
ELECTRO- OF CONTRACT (GCC) ANNEXURES
PORCELAINS Revision No. R0 Issued on
DIVISION (For supply and 14.03.2017
services)
ANNEXURE-XII
FORMAT FOR NO DEVIATION CERTIFICATE
(To be submitted in the bidder's letter head)
TO
BHARAT HEAVY ELECTRICALS LIMITED,
Electroporcelains Division
Prof. CNR Rao Circle,
Malleshwaram Bangalore 560012
Dear Sirs,
With reference to above, this is to confirm that we have not changed/ modified the tender
documents as appeared in the website/ issued by you and in case of such observance at any
stage, it shall be treated as null and void.
We hereby confirm that we have not taken any deviation from tender clauses together with
other references as enumerated in the above referred NIT. We hereby confirm our
unqualified acceptance to all terms &conditions, unqualified compliance to technical
specification, integrity pact (if applicable) and acceptance to reverse auctioning process.
In the event of observance of any deviation in any part of our offer at a later date whether
implicit or explicit, the deviations shall stand null &void.
We confirm to have submitted offer in accordance with tender instructions and as per
aforesaid references.
Thanking you,
Yours faithfully,
(Signature, date & seal of authorized representative of the bidder)
GENERAL CONDITIONS
ELECTRO- OF CONTRACT (GCC) ANNEXURES
PORCELAINS Revision No. R0 Issued on
DIVISION (For supply and 14.03.2017
services)
ANNEXURE-XIII
To,
(Write Name & Address of Officer of BHEL inviting the Tender)
Dear Sir,
I /We, hereby certify that all the information and data furnished by me with regard to the
above Tender Specification are true and complete to the best of my knowledge. I have gone
through the specifications, conditions, stipulations and all other pertinent issues till date,
and agree to comply with the requirements and Intent of the specification.
Yours faithfully,
Date:
ANNEXURE-XIV
AGREEMENT
(To be typed on non judicial Stamp Papers of appropriate value as applicable and
Notarised)
KNOW ALL MEN BY THESE PRESENTS, that I/We do hereby make, nominate, constitute
and appoint Mr , whose signature given below herewith to be true and lawful Attorney of
M/s_____ hereinafter called 'Company', for submitting Tender/entering into Contract and
inter alia, sign, execute all papers and to do necessary lawful acts on behalf of Company
with M/s Bharat Heavy Electricals Ltd, Electroporcelains Division, Bangalore in
connection with vide Tender Specification
No dated
And the Company do hereby agree to ratify and confirm all acts, deeds, things or
proceedings as may be lawfully done by the said attorney and by or on behalf of the
company and in the name of the company, by virtue of the powers conferred herein and
the same shall be binding on the company and shall have full force and effect.
IN WITNESS WHEREOF the common seal of the company has been hereunto affixed in
the manner hereinafter appearing on the document.
Director/CMD/Partner/Proprietor
Signature of Mr (Attorney)
Attested by:
Director/CMD/Partner/Proprietor
Witness
GENERAL CONDITIONS
ELECTRO- OF CONTRACT (GCC) ANNEXURES
PORCELAINS Revision No. R0 Issued on
DIVISION (For supply and 14.03.2017
services)
Notary Public
ANNEXURE-XVI
INDEMNITY BOND
(To be executed on a Non Judicial Stamp Paper of the requisite value as per Stamp Duty
prevalent in the respective State)
This Indemnity Bond executed by <name of company> having their Registered Office at
<xxxxxxxxxxx> in favour of M/s Bharat Heavy Electricals Limited, a Company
incorporated under the Companies Act, 1956, having its Registered Office at BHEL House,
Siri Fort, Asiad, New Delhi - 110049 through its Unit at Electroporcelains Division ,
Bangalore (Hereinafter referred to as the Company).
And whereas the Company has entered into a Contract with M/s xxxxxxxxx, the
executants of this Deed (hereinafter referred to as the Contractor) as its contractor in
respect of the work of "xxxxxxxxxxxxxxxxxxxxxxxxxx".
AND WHEREAS under the provisions of GCC further stipulates that the Contractor shall
indemnify the Company against all claims of whatever nature arising during the course of
execution of Contract including defects liability period of <xx Months > i.e till <xx xx xxxx>
Now this deed witness that in case the Company is made liable by any Authority including
Court to pay any claim or compensation etc. in respect of all labourers or other matters at
any stage under or relating to the Contract with the Contractor, the Contractor hereby
covenants and agrees with the Company that they shall indemnify and reimburse the
Company to the extent of such payments and for any fee, including litigation charges,
lawyers' fees, etc, penalty or damages claimed against the Company by reason of the
Contractor falling to comply with Central/States Laws, Rules etc, or his failure to comply
with Contract (including all expenses and charges incurred by the Company).
The Contractor further indemnifies the Company for the amount which the Company may
be liable to pay by way of penalty for not making deductions from the Bills of the
Contractor towards such amount and depositing the same in the Government Treasury.
GENERAL CONDITIONS
ELECTRO- OF CONTRACT (GCC) ANNEXURES
PORCELAINS Revision No. R0 Issued on
DIVISION (For supply and 14.03.2017
services)
The Contractor further agree that the Company shall be entitled to with hold and adjust
the Security Deposit and/or with hold and adjust payment of Bills of Contractor pertaining
to this Contract against any payment which the Company has made or is required to make
for which the Contractor is liable under the Contract and that such amount can be
withheld, adjusted by the Company till satisfactory and final settlement of all pending
matters and the Contractor hereby gives his consent for the same.
The Contractor further agrees that the terms of indemnity shall survive the termination or
completion of this contract.
The contractor further agrees that the liability of the contractor shall be extended on actual
basis notwithstanding the limitations of liability clause, in respect of:
Nothing contained in this deed, shall be construed as absolving or limiting the liability of
the Contractor under said Contract between the Company and the Contractor. That this
Indemnity Bond is irrevocable and the condition of the bond is that the Contractor shall
duly and punctually comply with the terms and the conditions of this deed and contractual
provisions to the satisfaction of the Company.
In witness where of M/s xxxxxxxxxxxxx these presents on the day, month and year first,
above written at xxxxxxxx by the hand of its signatory Mr. xxxxxxxxxxx.
Witness:
GENERAL CONDITIONS
ELECTRO- OF CONTRACT (GCC) ANNEXURES
PORCELAINS Revision No. R0 Issued on
DIVISION (For supply and 14.03.2017
services)
ANNEXURE-XVII
Annexure- A
CONSORTIUM AGREEMENT
THIS AGREEMENT is made and executed on ____ day of ____________ by and between
(1) M/s. ________________________, represented by Shri__________________, designated
as ____________, having its registered office at ____________ , ( The First Party, i.e, the
Bidder) Company incorporated under the Companys Act 1956 having its registered office
at ___________________________________ (hereinafter referred to as the Bidder which
expression shall include its successors, administrators, executors and permitted assigns)
and (2) M/s. __________________________, (The Second Party, i.e, the associates), a
company incorporated under
________________________________________( Company act), having its registered office
at _______________________________ (hereinafter called the Associates, which
expression shall include its successors, administrators, executors and permitted assigns).
WHEREAS, the Electroporcelains Division, one of the Units of M/s. Bharat Heavy
Electricals, having its office at Prof. CNR Rao Circle, Opp. Indian Institute of Science,
Malleswaram, Bangalore-560 012, A Government of India Undertaking (hereinafter called
the Employer, which expression shall include its successors, administrators, executors
and permitted assigns), proposes to issue / issued a Notice Inviting Tender ( hereinafter
referred to as NIT), inviting bids from the individual bidders for undertaking
the work of _________________________________(Package name) for
________________________( Project name) at
______________________________________(site location) (hereinafter referred to as the
Project) being set up by M/s. ___________________________ (hereinafter referred to as the
Owner).
AND WHEREAS, the said NIT enables submission of a bid by a Party subject to fulfilment
of the stipulations pre-qualification criteria specified in the said NIT.
GENERAL CONDITIONS
ELECTRO- OF CONTRACT (GCC) ANNEXURES
PORCELAINS Revision No. R0 Issued on
DIVISION (For supply and 14.03.2017
services)
AND WHEREAS, the Bidder desirous of submitting bid in response to the said NIT for
the said Project, and by itself is not meeting all the qualifying the Pre-qualification Criteria
specified in the said NIT and in order to fully meet the qualifying requirements of NIT, the
Bidder entered into this Consortium Agreement with the Associates.
AND WHEREAS the Bidder and the Associates are contractors engaged in the business of
carrying out various items of works. WHEREAS, the two parties have agreed to and
constitute themselves into a consortium for the purpose of carrying out the said works
relating to this Project, and that the consortium will be continued till the completion of the
works in all respects including the performance guarantee period as may be specified in
the NIT or Purchase Order/Work Order.
AND WHEREAS, with this consortium Agreement, the Bidder and Associates together
meets all the pre-qualification criteria as mentioned in the NIT.
WHEREAS, the parties have agreed to certain terms and conditions which forms a part of
this consortium agreement, as mentioned hereinbelow :
1. The Bidder and Associates hereby constitute themselves into a Consortium for the
purpose of submitting a Bid and undertaking the said works pursuant to the said
NIT as hereinafter stated.
2. The Bidder will be the leader (Lead Partner) and will be responsible for the execution
of the entire scope of works and its complete functioning as stated in the NIT.
3. The Bidder shall undertake the entire scope of work as detailed in the NIT jointly
with the Associates.
4. The Associates shall undertake their part of work as detailed in the NIT jointly with
the Bidder.
5. The Bidder and the Associates hereby declare and confirm that each of them jointly
and severally will fulfil the required minimum qualifying requirements as
prescribed in the said NIT for the works agreed to be undertaken by them as stated
herein above.
GENERAL CONDITIONS
ELECTRO- OF CONTRACT (GCC) ANNEXURES
PORCELAINS Revision No. R0 Issued on
DIVISION (For supply and 14.03.2017
services)
6. The Bidder and the Associates also hereby agree that both of them shall be jointly
and severally responsible for the completion of the said works as per the schedule.
Further, if the Employer and or the Owner sustains any loss or damage on account
of non-performance or any breach of contract, both the Bidder and Associates, as a
consortium partners, individually and severally undertake to compensate and pay
such losses / damages so caused to the Employer and or the Owner on its written
demand without any demur, reservation, contest or protest in any manner
whatsoever.
7. AND WHEREAS, the Bidder and the Associates, do hereby undertakes to indemnify
both the Employer and the Owner to make good any losses/damages sustained by
them due to the negligence or any acts of Bidder and or the Associates which results
in loss / damages to the Employer / Owner.
8. AND WHEREAS Bidder and the Associates hereby agree that in case of any dispute
arising in and out of this consortium agreement shall be dealt in accordance with the
provisions of Indian Arbitration and Conciliation Act, 1996 and the place of
Arbitration will be at India and the language of Arbitration will be English.
9. AND WHEREAS both the Bidder and the Associates hereby agree and undertake
that they shall provide adequate finances, suitable Tools, Plants, equipments,
tranctors, trailers, other transportation equipment, other Tools and Plants,
Measuring and Monitoring Equipments (MMEs), Men and Machinery etc., for the
proper and effective execution of the works to be undertaken by them as specified
herein above.
10. AND WHEREAS, it was agreed to interse, between the parties hereto that all
the consequential liabilities ec., arising out of any default in the due execution of the
said works shall be borne by the consortium leader and or party in default, that is by
party in whose area of works default has occurred, provided however, so far as the
Employer is concerned, both The bidder and the Associates shall be jointly and
severally liable irrespective of their scope of work.
GENERAL CONDITIONS
ELECTRO- OF CONTRACT (GCC) ANNEXURES
PORCELAINS Revision No. R0 Issued on
DIVISION (For supply and 14.03.2017
services)
IN WITNESS WHEREOF, the parties above named have signed this agreement on
the day month and year first above written at Faridabad.
AUTHORISED SIGNATORY ::
OFFICIAL ADDRESS :
COMPANY SEAL
WITNESSES :
1.
2.
For and on Behalf of the Associates
AUTHORISED SIGNATORY ::
OFFICIAL ADDRESS :
COMPANY SEAL
WITNESSES :
1
2
GENERAL CONDITIONS
ELECTRO- OF CONTRACT (GCC) ANNEXURES
PORCELAINS Revision No. R0 Issued on
DIVISION (For supply and 14.03.2017
services)
ANNEXURE XVIII
Vendor Particulars & Logistics Information
Vendors particulars & logistics information (Bidder to give details against each of the
provisions)
4. Name of location from where the goods shall be offered for inspection and dispatch
6. Bid currency
7. Name of the load port where the goods are offered for Delivery on FOB terms
9. Additional freight over FOB price, for delivery on CFR named port in the country
of destination, if the Seller decides to bid on CFR / CIF / CPT basis
GENERAL CONDITIONS
ELECTRO- OF CONTRACT (GCC) ANNEXURES
PORCELAINS Revision No. R0 Issued on
DIVISION (For supply and 14.03.2017
services)
10. Numbers, Type & size of containers estimated for delivery of Tendered quantity
(Applicable where the goods are to be sent in containers)
11. No. of Packages with cumulative gross weight and CBM volume (Applicable for
break-bulk shipment)
12. Additional FOB cost for loading the cargo on-board in case of EX-Works or FAS
delivery terms
a Sea port
b Air port
GENERAL CONDITIONS
ELECTRO- OF CONTRACT (GCC) ANNEXURES
PORCELAINS Revision No. R0 Issued on
DIVISION (For supply and 14.03.2017
services)
ANNEXURE XIX
I, or any other personnel employed or engaged by our company, agree not to disclose, directly or
indirectly, any information related to the BHEL, EPD Without restricting the generality of the
foregoing, it is agreed that we will not disclose such information consisting but not necessarily limited
to:
On conclusion of contract, I, or any other personnel employed or engaged by our company shall
return to BHEL, EPD all documents and property of BHEL, EPD, including: drawings, blueprints,
reports, manuals, computer programs/data/configuration, and all other materials and all copies
thereof relating in any way to BHEL, EPDs business, or in any way obtained by me during the
course of contract. I further agree that I, or any others employed or engaged by our company shall
not retain copies, notes or abstracts of the foregoing.
This obligation of confidence shall continue after the conclusion of the contract also.
I acknowledge that the aforesaid restrictions are necessary and fundamental to the business of the
BHEL, EPD and are reasonable given the nature of the business carried on by the BHEL, EPD I
agree that this agreement shall be governed by and construed in accordance with the laws of
country.
I enter into this agreement totally voluntarily, with full knowledge of its meaning, and without duress.
Place:-_____________________________ Date:-_____________________
Name
Company
GENERAL CONDITIONS
ELECTRO- OF CONTRACT (GCC) ANNEXURES
PORCELAINS Revision No. R0 Issued on
DIVISION (For supply and 14.03.2017
services)
Signature