7KH7DURW

,WV2FFXOW6LJQLILFDQFH8VHLQ)RUWXQH7HOOLQJ DQG0HWKRGRI3OD\(WF %\6/0DF*UHJRU0DWKHUV

7KH7DURW

,WV2FFXOW6LJQLILFDQFH8VHLQ)RUWXQH7HOOLQJ DQG0HWKRGRI3OD\(WF



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³7DURW´RU³7DURFFKL´LVDSSOLHGWRDSDFNRIFDUGV FRQVLVWLQJRIIRXUVXLWVRIFDUGVHDFKWKHUHEHLQJRQHPRUHFRXUW FDUGWKDQLQWKHRUGLQDU\SDFNV²WKH&DYDOLHU.QLJKWRU+RUVHPDQ 

DQGV\PEROLFDOSLFWXUHFDUGVDQVZHULQJIRUWUXPSV7KHVHODWWHUDUH QXPEHUHGIURPWRLQFOXVLYHWKHQGFDUGEHLQJPDUNHG=HUR 7KHGHVLJQVRIWKHVHWUXPSVDUHH[WUHPHO\VLQJXODUDPRQJWKHPEHLQJ VXFKUHSUHVHQWDWLRQVDV'HDWKWKH'HYLOWKH/DVW-XGJPHQW F 7KHLGHDWKDWFDUGVZHUHILUVW³LQYHQWHG¶WRDPXVH&KDUOHV9,RI)UDQFH LVQRZH[SORGHGDQGLWLVZRUWK\RIQRWHLQWKLVFRQQHFWLRQWKDWWKHLU VXSSRVLWLWLRXV³LQYHQWRU´ZDV-DFTXHV*ULQJRQQHXUDQ$VWURORJHUDQG 4DEDOLVW)XUWKHUPRUHFDUGVZHUHNQRZQSULRUWRWKLVSHULRGDPRQJ WKH,QGLDQVDQGWKH&KLQHVH(WWHLOODLQGHHGJLYHVLQRQHRIKLVWUDFWV RQWKH7DURWDUHSUHVHQWDWLRQRIWKHP\VWLFDODUUDQJHPHQWRIWKHVH FDUGVLQWKH7HPSOHRI3WDKDW0HPSKLVDQGKHIXUWKHUVD\V ³8SRQDWDEOHRUDOWDUDWWKHKHLJKWRIWKHEUHDVWRIWKH(J\SWLDQ 0DJXVRU+LHURSKDQW ZHUHRQRQHVLGHDERRNRUDVVHPEODJHRI FDUGVRUSODWHVRIJROGWKH7DURW DQGRQWKHRWKHUDYDVHHWF´7KLV LGHDLVIXUWKHUGLODWHGXSRQE\3&KULVWLDQWKHGLVFLSOHRI(OLSKDV /HYL LQKLV³+LVWRLUHGHOD0DJLH´WRZKLFK,VKDOOKDYHRFFDVLRQWR UHIHUODWHU7KHJUHDWH[SRQHQWVRIWKH7DURW&RXUWGH*qEHOLQ/HYL DQG(WWHLOODKDYHDOZD\VDVVLJQHGWRWKH7DURWD4DEDOLVWLFR(J\SWLDQ RULJLQDQGWKLV,KDYHIRXQGFRQILUPHGLQP\RZQUHVHDUFKHVLQWRWKLV VXEMHFWZKLFKKDYHH[WHQGHGRYHUVHYHUDO\HDUV :+XJKHV:LOOVKLUHLQKLVUHPDUNVRQWKH*HQHUDO+LVWRU\RI 3OD\LQJ&DUGVVD\V³7KHPRVWDQFLHQWFDUGVZKLFKKDYHFRPHGRZQ WRXVDUHRIWKH7DURW¶VFKDUDFWHU7KHVHDUHWKHIRXUFDUGVRIWKH0XVpH &RUUHUDW9HQLFHWKHVHYHQWHHQSLHFHVRIWKH3DULV&DELQHW HUURQHRXVO\RIWHQFDOOHGWKH*ULQJRQQHXURU&KDUOHV9,FDUGVRI  ILYH9HQHWLDQ7DURWVRIWKHILIWHHQWKFHQWXU\LQWKHRSLQLRQRI VRPHQRWRIDQHDUOLHUGDWHWKDQDQGWKHVHULHVRIFDUGVEHORQJLQJ WRD0LQFKLDWHVHWLQWKHSRVVHVVLRQRIWKH&RXQWHVV$XUHOLD9LVFRQWL *RQ]DJDDW0LODQZKHQ&LFRJQDUDZURWH´ :$&KDWWRLQKLV³+LVWRU\RI3OD\LQJ&DUGV´VD\VWKDWFDUGVZHUH LQYHQWHGLQ&KLQDDVHDUO\DV$'LQWKHUHLJQRI6HXQ+RIRU WKHDPXVHPHQWRIKLVQXPHURXVFRQFXELQHV -)9DLOODQWLQ³/HV5RPHVKLVWRLUHYUDLHGHVYUDLHV%RKpPLHQV´ 3DULVVD\VWKDWWKH&KLQHVHKDYHDGUDZLQJGLYLGHGLQWR FRPSDUWPHQWVRUVHULHVEDVHGRQFRPELQDWLRQVRIWKHQXPEHUL>L@³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

HSRFKRIWKHSUHSDUDWLRQRIWKH=RGLDFDQGFRQVHTXHQWO\WKDWLWPXVW RZQ\HDUVRIH[LVWHQFH´ %XWQRWZLWKVWDQGLQJWKHDSSDUHQWDXGDFLW\RIWKLVODWWHUVWDWHPHQWLW PXVWEHHYLGHQWRQUHIOHFWLRQWKDWWKH7DURWFRQVLVWLQJDVLWGRHVRI WKHWHQQXPEHUVRIWKHGHFLPDOVFDOHFRXQWHUFKDQJHGZLWKWKHWHWUDG DQGRIDKLHURJO\SKLFDOSKDEHWRIWZHQW\WZRP\VWLFV\PEROVPXVWEH UHOHJDWHGWRIDUHDUOLHUSHULRGLQWKHKLVWRU\RIWKHZRUOGWKDQWKDW XVXDOO\DVVLJQHGWRWKHLQWURGXFWLRQRIFDUGVLQWR(XURSHDQGZHPD\ WDNHWKHIDFWRIWKH7DURWEHLQJWKHRULJLQRIWKHPRGHUQFDUGDVEHLQJ QRZSUHWW\ZHOOHVWDEOLVKHGE\JHQHUDOFRQVHQVXVRI2SLQLRQ ,WZDV&RXUWGH*qEHOLQZKRLQKLV³0RQGH3ULPLWLI´3DULV  ZURWH³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¶VKHDUHUV" ³
FRQVXOWHGRUIURPZKLFKDQDQVZHULVUHTXLUHG7KLVDSSHDUVWRPHWR EHWKHFRUUHFWRULJLQRIWKHZRUGZKLOHWKHVHFRQGWLVDQ(J\SWLDQ KLHURJO\SKLFILQDOZKLFKLVDGGHGWRGHQRWHWKHIHPLQLQHJHQGHU7KH IROORZLQJDUHLQWHUHVWLQJPHWDWKHVHVRIWKHOHWWHUVRI7$52725$ +HEUHZ  /DZ752$+HEUHZ  *DWH527$/DWLQ  ZKHHO 25$7/DWLQ  LWVSHDNVDUJXHVRUHQWUHDWV7$25(J\SWLDQ   7lXUWKH*RGGHVVRI'DUNQHVV$725(J\SWLDQ  $WKRUWKH (J\SWLDQ9HQXV$0U/XPOH\WHOOVPHWKDWWKHUHLVD=HQGZRUG ³WDULVN´PHDQLQJ³WRUHTXLUHDQDQVZHU´ 7KHUHDUH,WDOLDQ6SDQLVKDQG*HUPDQ7DURWSDFNVDQGVLQFHWKHWLPH RI(WWHLOOD)UHQFKDOVREXWWKHVHODWWHUDUHQRWVRZHOODGDSWHGIRU RFFXOWVWXG\RZLQJWR(WWHLOOD¶VDWWHPSWHG³FRUUHFWLRQV´RIWKH V\PEROLVP7KH,WDOLDQDUHGHFLGHGO\WKHEHVWIRUGLYLQDWLRQDQG SUDFWLFDORFFXOWSXUSRVHVDQG,VKDOOWKHUHIRUHXVHWKHPDVWKHEDVLV RIWKHSUHVHQWWUHDWLVH8QIRUWXQDWHO\WKHROGIDVKLRQHGVLQJOHKHDGHG FDUGVDUHREVROHWHQRZDQGWKHRQO\RQHVPDGHDUHGRXEOHKHDGHG ZKLFKFLUFXPVWDQFHDOWHUVWKHV\PEROLVPLQDIHZLQVWDQFHV,VKDOO WKHUHIRUHZKHUHYHUQHFHVVDU\GHVFULEHWKHRPLWWHGSRUWLRQRIWKH GHVLJQHQFORVLQJLWZLWKLQEUDFNHWVWRPDUNWKHVDPH $V,EHIRUHREVHUYHGWKH7DURWSDFNFRQVLVWVRIVHYHQW\HLJKWFDUGV² QDPHO\IRXUVXLWVRIIRXUWHHQFDUGVHDFKDQGWZHQW\WZRV\PEROLF QXPEHUHGWUXPSV7KHIRXUVXLWVDUH² ,WDOLDQ %DVWRQL

)UHQFK %kWRQV

&RSSp

&RXSHV

6SDGp 'HQDUL

eSpHV 'HQLHUV

(QJOLVK :DQGV6FHSWUHVRU &OXEV &XSV&KDOLFHVRU *REOHWV 6ZRUGV 0RQH\&LUFOHVRU 3HQWDFOHV

$QVZHULQJWR 'LDPRQGV +HDUWV 6SDGHV &OXEV

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
)UHQFK



,O%DJDWWR 3$*$'  /D3DSHVVD

/H%DWHOHXU



*OL$PDQWL

/¶$PRXUHX[

  

/¶,PSHUDWULFH /¶,PSHUDWRUH ,O3DSD

/D3DSHVVH

/¶,PSpUDWULFH /¶(PSHUHXU /H3DSH

 (QJOLVK 7KH-XJJOHURU 0DJLFLDQ 7KH+LJK3ULHVWHVVRU )HPDOH3RSH 7KH(PSUHVV 7KH(PSHURU 7KH+LHURSKDQWRU 3RSH 7KH/RYHUV

+HEUHZ /HWWHU $OHSK $ %HWK

%

9DX

9

*LPHO * 'DOHWK ' +H +

   

,O&DUUR /D*LXVWL]LD /¶(UHPLWD 5RWD'L)RUWXQD

/H&KDULRW /D-XVWLFH /¶(UPLWH /D5RXHGH )RUWXQH  /D)RU]D  /D)RUFH  ,O3HQGXWR /H3HQGX  ,O0RUWH /D0RUW  /D7HPSHUDQ]D /D7HPSHUDQFH  ,O'LDYROR  /H'LDEOH  /D7RUUH /H0DLVRQ'LHX      

/H6WHOOH  /D/XQD  ,O6ROH  /¶$QJHOR ,O0DWWR0$7  ,O0RQGR

/¶(WRLOH /D/XQH /H6ROHLO /H-XJHPHQW /H)RX /H0RQGH

7KH&KDULRW -XVWLFH 7KH+HUPLW 7KH:KHHORI)RUWXQH 6WUHQJWK)RUWLWXGH 7KH+DQJHG0DQ 'HDWK 7HPSHUDQFH 7KH'HYLO 7KH/LJKWQLQJVWUXFN 7RZHU 7KH6WDU 7KH0RRQ 7KH6XQ 7KH/DVW-XGJPHQW 7KH)RROLVK0DQ 7KH8QLYHUVH

=DLQ &KHWK 7HWK
= &+ 7 ,

3H 7]DGGL 4RSK 5HVK 6KLQ 7DX

3 7] 4 5 6+ 7+

.DSK /DPHG 0HP 1XQ 6DPHFK $\LQ

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

. / 0 1 6 2

XSRQDVWDIIVXUPRXQWHGE\DWULSOHFURVV%HIRUHKLPNQHHOWZR PLQLVWHUV +HLVWKHV\PERORI0HUF\DQG%HQHILFHQFH 7KH/RYHUV7KLVLVXVXDOO\GHVFULEHGDVUHSUHVHQWLQJ0DQEHWZHHQ 9LFHDQG9LUWXHZKLOHDZLQJHGJHQLXVWKUHDWHQV9LFHZLWKKLVGDUW %XW,DPUDWKHULQFOLQHGWRWKHRSLQLRQWKDWLWUHSUHVHQWVWKH 4DEDOLVWLFDO0LFURSURVRSXVEHWZHHQ%LQDKDQG0DONXWKVHHP\ .DEEDODK8QYHLOHG ZKLOHWKHILJXUHDERYHVKRZVWKH,QIOXHQFH GHVFHQGLQJIURP.HWKHU,WLVXVXDOO\FRQVLGHUHGWRPHDQ3URRIRU 7ULDOEXW,DPLQFOLQHGWRVXJJHVW:LVH'LVSRVLWLRQDVLWVVLJQLILFDWLRQ 7KH&KDULRW7KLVLVDPRVWFRPSOLFDWHGDQGLPSRUWDQWV\PERO ZKLFKKDVEHHQUHVWRUHGE\(OLSKDV/HYL,WUHSUHVHQWVD&RQTXHURU FURZQHGDQGEHDULQJDVFHSWUHULGLQJLQDFXELFDOFKDULRWVXUPRXQWHG E\IRXUFROXPQVDQGDFDQRS\DQGGUDZQE\WZRKRUVHVRQHRIZKLFK ORRNVVWUDLJKWIRUZDUGZKLOHWKHRWKHUWXUQVKLVKHDGWRZDUGVKLP 7ZRZKHHOVDUHVKRZQLQWKHFRPSOHWHVLQJOHKHDGHGILJXUH ,W UHSUHVHQWV7ULXPSKDULG9LFWRU\RI-XVWLFHDQG-XGJPHQW -XVWLFH$ZRPDQFURZQHGDQGVHDWHGRQDWKURQHEHWZHHQWZR FROXPQV KROGLQJLQKHUULJKWKDQGDQXSULJKWVZRUGDQGLQKHUOHIW WKHVFDOHV6KHV\PEROLVHV(TXLOLEULXPDQG-XVWLFH 7KH+HUPLW$QROGDQGEHDUGHGPDQZUDSSHGLQDPDQWOHDQGZLWK KLVKHDGFRYHUHGZLWKDFRZOEHDULQJLQKLVULJKWKDQGWKHODQWHUQRI RFFXOWVFLHQFHZKLOHLQKLVOHIWKHKROGVKLVPDJLFZDQGKDOIKLGGHQ EHQHDWKKLVFORDN+HLV3UXGHQFH 7KH:KHHORI)RUWXQH$ZKHHORIVHYHQVSRNHVWKHWZRKDOYHVRI WKHGRXEOHKHDGHGFDUGVPDNHLWHLJKWVSRNHVZKLFKLVLQFRUUHFW  UHYROYLQJEHWZHHQWZRXSULJKWV 2QWKHDVFHQGLQJVLGHLVDQDQLPDO DVFHQGLQJDQGRQWKHGHVFHQGLQJVLGHLVDVRUWRIPRQNH\GHVFHQGLQJ ERWKIRUPVDUHERXQGWRWKHZKHHO$ERYHLWLVWKHIRUPRIDQDQJHORU DVSKLQ[LQVRPH KROGLQJDVZRUGLQRQHKDQGDQGDFURZQLQWKH RWKHU7KLVYHU\FRPSOLFDWHGV\PEROLVPXFKGLVILJXUHGDQGKDVEHHQ ZHOOUHVWRUHGE\/HYL,WV\PEROLVHV)RUWXQHJRRGRUEDG 6WUHQJWKRU)RUWLWXGH$ZRPDQFURZQHGZLWKFURZQDQGFDSRI PDLQWHQDQFHZKRFDOPO\DQG:LWKRXWHIIRUWFORVHVWKHMDZVRID IXULRXVOLRQ6KHUHSUHVHQWV6WUHQJWK 7KH+DQJHG0DQ7KLVH[WUDRUGLQDU\V\PEROLVDOPRVW XQLQWHOOLJLEOHLQWKHGRXEOHKHDGHGFDUGV3URSHUO\LWUHSUHVHQWVDPDQ KXQJKHDGGRZQZDUGVIURPDVRUWRIJLEEHWE\RQHIRRWKLVKDQGVDUH ERXQGEHKLQGKLVEDFNLQVXFKDPDQQHUWKDWKLVERG\IRUPVDWULDQJOH ZLWKWKHSRLQWGRZQZDUGV DQGKLVOHJVDFURVVDERYHLW7ZRVDFNVRU ZHLJKWVDUHDWWDFKHGWRKLVDUPSLWV +HV\PEROLVHV6DFULILFH

'HDWK$VNHOHWRQDUPHGZLWKD6F\WKHZKHUHZLWKKHPRZVGRZQ KHDGVLQDPHDGRZOLNHJUDVV +HVLJQLILHV7UDQVIRUPDWLRQRU &KDQJH 7HPSHUDQFH$QDQJHOZLWKWKHVLJQRIWKH6XQRQKHUEURZ 3RXULQJOLTXLGIURPRQHYHVVHOLQWRDQRWKHU6KHUHSUHVHQWV &RPELQDWLRQ 7KH'HYLO$KRUQHGDQGZLQJHGGHPRQZLWKHDJOH¶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¶VFDSGUHVVHGOLNHDMHVWHU ZLWKDVWLFNDQGEXQGOHRYHUKLVVKRXOGHU%HIRUHKLPLVWKHEXWWHUIO\RI SOHDVXUHOXULQJKLPRQZKLOHLQVRPHSDFNVDWLJHULQRWKHUVDGRJ DWWDFNVKLPIURPEHKLQG ,WVLJQLILHV)ROO\([SLDWLRQ 7KH8QLYHUVH:LWKLQDIORZHU\ZUHDWKLVDIHPDOHILJXUHQXGH VDYHIRUDOLJKWVFDUI6KHUHSUHVHQWV1DWXUHDQGWKH'LYLQH3UHVHQFH WKHUHLQ,QHDFKKDQGVKHVKRXOGEHDUDZDQG$WWKHIRXUDQJOHVRIWKH FDUGDUHWKHIRXUFKHUXELFDQLPDOVRIWKH$SRFDO\SVH$ERYHWKH(DJOH DQGWKH0DQEHORZWKH/LRQDQGWKH%XOO,WUHSUHVHQWV&RPSOHWLRQ 5HZDUG

7KXVWKHZKROHVHULHVRIWKHWZHQW\WZRWUXPSVZLOOJLYHDFRQQHFWHG VHQWHQFHZKLFKLVFDSDEOHRIEHLQJUHDGWKXV²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²:LOO:LOO3RZHU'H[WHULW\5:LOODSSOLHGWRHYLO HQGV:HDNQHVVRI:LOO&XQQLQJ.QDYLVKQHVV 7KH+LJK3ULHVWHVV²6FLHQFH:LVGRP.QRZOHGJH(GXFDWLRQ5 &RQFHLW,JQRUDQFH8QVNLOIXOQHVV6XSHUILFLDO.QRZOHGJH 7KH(PSUHVV²$FWLRQ3ODQ8QGHUWDNLQJ0RYHPHQWLQDPDWWHU ,QLWLDWLYH5,QDFWLRQ)ULWWHULQJDZD\RISRZHU:DQWRI &RQFHQWUDWLRQ9DFLOODWLRQ 7KH(PSHURU²5HDOLVDWLRQ(IIHFW'HYHORSPHQW56WRSSDJH &KHFN,PPDWXUH8QULSH 7KH+LHURSKDQWRU3RSH0HUF\%HQHILFHQFH.LQGQHVV*RRGQHVV 52YHUNLQGQHVVZHDNQHVV)RROLVKH[HUFLVHRIJHQHURVLW\ 7KH/RYHUV²:LVH'LVSRVLWLRQV3URRI7ULDOV6XUPRXQWHG5 8QZLVH3ODQV)DLOXUHZKHQSXWWRWKHWHVW 7KH&KDULRW²7ULXPSK9LFWRU\2YHUFRPLQJREVWDFOHV5 2YHUWKURZQ&RQTXHUHGE\2EVWDFOHVDWWKHODVWPRPHQW 7KHPLVRU-XVWLFH(TXLOLEULXP%DODQFH-XVWLFH5%LJRWU\:DQW RI%DODQFH$EXVHRI-XVWLFH2YHUVHYHULW\,QHTXDOLW\%LDV 7KH+HUPLW²3UXGHQFH&DXWLRQ'HOLEHUDWLRQ52YHUSUXGHQFH 7LPRURXVQHVV)HDU

7KH:KHHORI)RUWXQH²*RRG)RUWXQH6XFFHVV8QH[SHFWHG /XFN5,OO)RUWXQH)DLOXUH8QH[SHFWHG,OO/XFN 6WUHQJWKRU)RUWLWXGH²3RZHU0LJKW)RUFH6WUHQJWK)RUWLWXGH 5$EXVHRI3RZHU2YHUEHDULQJQHVV:DQWRI)RUWLWXGH 7KH+DQJHG0DQ²6HOIVDFULILFH6DFULILFH'HYRWLRQ%RXQG5 6HOILVKQHVV8QERXQG3DUWLDOVDFULILFH 'HDWK²'HDWK&KDQJH7UDQVIRUPDWLRQ$OWHUDWLRQIRUWKHZRUVH 5'HDWKMXVWHVFDSHG3DUWLDOFKDQJH$OWHUDWLRQIRUWKHEHWWHU 7HPSHUDQFH²&RPELQDWLRQ&RQIRUPDWLRQ8QLWLQJ5,OO DGYLVHGFRPELQDWLRQV'LVXQLRQ&ODVKLQJLQWHUHVWV F 7KH'HYLO²)DWDOLW\IRU*RRG5)DWDOLW\IRU(YLO 7KH/LJKWQLQJVWUXFN7RZHU5XLQ'LVUXSWLRQ2YHUWKURZ/RVV %DQNUXSWF\57KHVHLQDPRUHRUOHVVSDUWLDOGHJUHH 7KH6WDU²+RSH([SHFWDWLRQ%ULJKWSURPLVHV5+RSHVQRW IXOILOOHG([SHFWDWLRQVGLVDSSRLQWHGRUIXOILOOHGLQDPLQRUGHJUHH 7KH0RRQ²7ZLOLJKW'HFHSWLRQ(UURU5)OXFWXDWLRQVOLJKW 'HFHSWLRQV7ULIOLQJ0LVWDNHV 7KH6XQ²+DSSLQHVV&RQWHQW-R\57KHVHLQDPLQRUGHJUHH 7KH/DVW-XGJPHQW²5HQHZDO5HVXOW'HWHUPLQDWLRQRID 0DWWHU53RVWSRQHPHQWRI5HVXOW'HOD\0DWWHUUHRSHQHGODWHU 7KH)RROLVK0DQ²)ROO\([SLDWLRQ:DYHULQJ5+HVLWDWLRQ ,QVWDELOLW\7URXEOHDULVLQJKHUHIURP 7KH8QLYHUVH²&RPSOHWLRQ*RRG5HZDUG5(YLO5HZDUGRU 5HFRPSHQVH .LQJRI6FHSWUHV²0DQOLYLQJLQWKHFRXQWU\&RXQWU\*HQWOHPDQ .QRZOHGJH(GXFDWLRQ5$QDWXUDOO\JRRGEXWVHYHUHPDQ&RXQVHO $GYLFH'HOLEHUDWLRQ 4XHHQRI6FHSWUHV²:RPDQOLYLQJLQWKHFRXQWU\/DG\RIWKH 0DQRU/RYHRI0RQH\$YDULFH8VXU\5$JRRGDYLUWXRXV:RPDQ EXWVWULFWDQGHFRQRPLFDO2EVWDFOHV5HVLVWDQFH2SSRVLWLRQ .QLJKWRI6FHSWUHV²'HSDUWXUH6HSDUDWLRQ'LVXQLRQ5 5XSWXUH'LVFRUG4XDUUHO .QDYHRI6FHSWUHV²$*RRG6WUDQJHU*RRG1HZV3OHDVXUH 6DWLVIDFWLRQ5,OO1HZV'LVSOHDVXUH&KDJULQ:RUU\

7HQRI6FHSWUHV²&RQILGHQFH6HFXULW\+RQRXU*RRG)DLWK5 7UHDFKHU\6XEWHUIXJH'XSOLFLW\%DU 1LQHRI6FHSWUHV²2UGHU'LVFLSOLQH*RRG$UUDQJHPHQW 'LVSRVLWLRQ52EVWDFOHV&URVVHV'HOD\'LVSOHDVXUH (LJKWRI6FHSWUHV²8QGHUVWDQGLQJ2EVHUYDWLRQ'LUHFWLRQ5 4XDUUHOV,QWHVWLQHGLVSXWHV'LVFRUG 6HYHQRI6FHSWUHV²6XFFHVV*DLQ$GYDQWDJH3URILW9LFWRU\5 ,QGHFLVLRQ'RXEW+HVLWDWLRQ(PEDUUDVVPHQW$Q[LHW\ 6L[RI6FHSWUHV²$WWHPSW+RSH'HVLUH:LVK([SHFWDWLRQ5 ,QILGHOLW\7UHDFKHU\'LVOR\DOW\3HUILG\ )LYHRI6FHSWUHV²*ROG2SXOHQFH*DLQ+HULWDJH5LFKHV )RUWXQH0RQH\5/HJDOSURFHHGLQJV-XGJPHQW/DZ/DZ\HU 7ULEXQDO )RXURI6FHSWUHV²6RFLHW\8QLRQ$VVRFLDWLRQ&RQFRUG +DUPRQ\53URVSHULW\6XFFHVV+DSSLQHVV$GYDQWDJH 7KUHHRI6FHSWUHV²(QWHUSULVH8QGHUWDNLQJ&RPPHUFH7UDGH 1HJRWLDWLRQ5+RSH'HVLUH$WWHPSW:LVK 'HXFHRI6FHSWUHV²5LFKHV)RUWXQH2SXOHQFH0DJQLILFHQFH *UDQGHXU56XUSULVH$VWRQLVKPHQW(YHQW([WUDRUGLQDU\ 2FFXUUHQFH $FHRI6FHSWUHV²%LUWK&RPPHQFHPHQW%HJLQQLQJ2ULJLQ 6RXUFH53HUVHFXWLRQ3XUVXLWV9RLOHQFH9H[DWLRQ&UXHOW\7\UDQQ\ .LQJRI&XSV²$IDLU0DQ*RRGQHVV.LQGQHVV/LEHUDOLW\ *HQHURVLW\5$0DQRIJRRGSRVLWLRQEXWVKLIW\LQKLV'HDOLQJV 'LVWUXVW'RXEW6XVSLFLRQ 4XHHQRI&XSV²$IDLU:RPDQ6XFFHVV+DSSLQHVV$GYDQWDJH 3OHDVXUH5$:RPDQLQJRRGSRVLWLRQEXWLQWHUPHGGOLQJDQGWREH GLVWUXVWHG6XFFHVVEXWZLWKVRPHDWWHQGDQWWURXEOH .QLJKWRI&XSV²$UULYDO$SSURDFK$GYDQFH5'XSOLFLW\ $EXVHRI&RQILGHQFH)UDXG&XQQLQJ .QDYHRI&XSV²$IDLU
1LQHRI&XSV²9LFWRU\$GYDQWDJH6XFFHVV7ULXPSK 'LIILFXOWLHVVXUPRXQWHG5)DXOWV(UURUV0LVWDNHV,PSHUIHFWLRQV (LJKWRI&XSV²$IDLU*LUO)ULHQGVKLS$WWDFKPHQW7HQGHUQHVV 5*DLHW\)HDVWLQJ-R\3OHDVXUH 6HYHQRI&XSV²,GHD6HQWLPHQW5HIOHFWLRQ3URMHFW53ODQ 'HVLJQ5HVROXWLRQ'HFLVLRQ 6L[RI&XSV²7KH3DVWSDVVHGE\)DGHG9DQLVKHG'LVDSSHDUHG 57KH)XWXUHWKDWZKLFKLVWRFRPH6KRUWO\6RRQ )LYHRI&XSV²8QLRQ-XQFWLRQ0DUULDJH,QKHULWDQFH5$UULYDO 5HWXUQ1HZV6XUSULVH)DOVHSURMHFWV )RXURI&XSV²(QQXL'LVSOHDVXUH'LVFRQWHQW'LVVDWLVIDFWLRQ 51HZ$FTXDLQWDQFH&RQMHFWXUH6LJQ3UHVHQWLPHQW 7KUHHRI&XSV²6XFFHVV7ULXPSK9LFWRU\)DYRXUDEOHLVVXH5 ([SHGLWLRQRIEXVLQHVV4XLFNQHVV&HOHULW\9LJLODQFH 'HXFHRI&XSV²/RYH$WWDFKPHQW)ULHQGVKLS6LQFHULW\ $IIHFWLRQ5&URVVHGGHVLUHV2EVWDFOHV2SSRVLWLRQ+LQGUDQFH $FHRI&XSV²)HDVWLQJ%DQTXHW*RRG&KHHU5&KDQJH 1RYHOW\0HWDPRUSKRVLV,QFRQVWDQF\ .LQJRI6ZRUGV²$/DZ\HUD0DQRI/DZ3RZHU&RPPDQG 6XSHULRULW\$XWKRULW\5$:LFNHG0DQ&KDJULQ:RUU\*ULHI )HDU'LVWXUEDQFH 4XHHQRI6ZRUGV²:LGRZKRRG/RVV3ULYDWLRQ$EVHQFH 6HSDUDWLRQ5$%DG:RPDQLOOWHPSHUHGDQGELJRWHG5LFKHVDQG 'LVFRUG$EXQGDQFHWRJHWKHUZLWK:RUU\-R\ZLWK*ULHI .QLJKWRI6ZRUGV²$6ROGLHUDPDQZKRVHSURIHVVLRQLVDUPV 6NLOIXOQHVV&DSDFLW\$GGUHVV3URPSWLWXGH5$FRQFHLWHGIRRO ,QJHQXRXVQHVV6LPSOLFLW\ .QDYHRI6ZRUGV²$6S\2YHUORRNLQJ$XWKRULW\57KDWZKLFK LVXQIRUHVHHQ9LJLODQFH6XSSRUW 7HQRI6ZRUGV²7HDUV$IIOLFWLRQ*ULHI6RUURZ53DVVLQJ 6XFFHVV0RPHQWDU\$GYDQWDJH 1LQHRI6ZRUGV²$Q(FFOHVLDVWLFD3ULHVW&RQVFLHQFH3URELW\ *RRG)DLWK,QWHJULW\5:LVHGLVWUXVW6XVSLFLRQ)HDU'RXEW6KDG\ FKDUDFWHU

(LJKWRI6ZRUGV²6LFNQHVV&DOXPQ\&ULWLFLVP%ODPH5  7UHDFKHU\LQWKH3DVW(YHQW$FFLGHQW5HPDUNDEOH,QFLGHQW 6HYHQRI6ZRUGV²+RSH&RQILGHQFH'HVLUH$WWHPSW:LVK5 :LVH$GYLFH*RRG&RXQVHO:LVGRP3UXGHQFH&LUFXPVSHFWLRQ 6L[RI6ZRUGV²(QYR\0HVVHQJHU9R\DJH7UDYHO5 'HFODUDWLRQ/RYHSURSRVHG5HYHODWLRQ6XUSULVH )LYHRI6ZRUGV²0RXUQLQJ6DGQHVV$IIOLFWLRQ5/RVVHV 7URXEOHVDPHVLJQLILFDWLRQZKHWKHUUHYHUVHGRUQRW  )RXURI6ZRUGV²6ROLWXGH5HWUHDW$EDQGRQPHQW6ROLWDU\ +HUPLW5(FRQRP\3UHFDXWLRQ5HJXODWLRQRI([SHQGLWXUH 7KUHHRI6ZRUGV²$1XQ6HSDUDWLRQ5HPRYDO5XSWXUH 4XDUUHO5(UURU&RQIXVLRQ0LVUXOH'LVRUGHU 'HXFHRI6ZRUGV²)ULHQGVKLS9DORXU)LUPQHVV&RXUDJH5 )DOVH)ULHQGV7UHDFKHU\/LHV $FHRI6ZRUGV²7ULXPSK)HFXQGLW\)HUWLOLW\3URVSHULW\5 (PEDUUDVVPHQW)RROLVKDQG+RSHOHVV/RYH2EVWDFOH+LQGUDQFH .LQJRI3HQWDFOHV²$GDUN0DQ9LFWRU\%UDYHU\&RXUDJH 6XFFHVV5$QROGDQGYLFLRXV0DQD'DQJHURXV0DQ'RXEW)HDU 3HULO'DQJHU 4XHHQRI3HQWDFOHV²$GDUN:RPDQDJHQHURXV:RPDQ /LEHUDOLW\*UHDWQHVVRI6RXO*HQHURVLW\5&HUWDLQ(YLODVXVSLFLRXV :RPDQD:RPDQMXVWO\UHJDUGHGZLWK6XVSLFLRQ'RXEW0LVWUXVW .QLJKWRI3HQWDFOHV²$XVHIXO0DQ7UXVWZRUWK\:LVGRP (FRQRP\2UGHU5HJXODWLRQ5$EUDYH0DQEXWRXWRI(PSOR\PHQW ,GOH8QHPSOR\HG1HJOLJHQW .QDYHRI3HQWDFOHV²$GDUN
6L[RI3HQWDFOHV²3UHVHQWV*LIWV*UDWLILFDWLRQ5$PELWLRQ 'HVLUH3DVVLRQ$LP/RQJLQJ )LYHRI3HQWDFOHV²/RYHURU0LVWUHVV/RYH6ZHHWQHVV $IIHFWLRQ3XUHDQG&KDVWH/RYH5'LVJUDFHIXO/RYH,PSUXGHQFH /LFHQVH3URIOLJDF\ )RXURI3HQWDFOHV²3OHDVXUH*DLHW\(QMR\PHQW6DWLVIDFWLRQ5 2EVWDFOHV+LQGUDQFHV 7KUHHRI3HQWDFOHV²1RELOLW\(OHYDWLRQ'LJQLW\5DQN3RZHU 5&KLOGUHQ6RQV'DXJKWHUV
4XHHQRI6ZRUGV²7KLVLVQRWQHFHVVDULO\WREHWDNHQE\LWVHOILW PD\VLJQLI\WKDWWKHSHUVRQV\PEROLVHGE\WKHFDUGVQHDULWKDVMXVW ORVWRULVOLNHO\VRRQWRORVHZLIHRUKXVEDQG,QVRPHLQVWDQFHVLWPD\ PHUHO\VLJQLI\WKDWLIWZRSHRSOHDUHPDUULHGWKHRQHZLOOGLHVRPH WLPHEHIRUHWKHRWKHUEXWQRWQHFHVVDULO\WKDWWKHHYHQWZLOORFFXU LPPHGLDWHO\ .QDYHRI6ZRUGV²5,I5$QXQH[SHFWHGSUHVHQW,I 5XQH[SHFWHGJULHIHWF 1LQHRI6ZRUGV²57KHFDUGIROORZLQJZLOOVKRZZKRPRUZKDW WRGLVWUXVW F (LJKWRI6ZRUGV²56KRZV7UHDFKHU\RU'HFHLWLQWKHSDVWDQG ZLOOEHH[SODLQHGE\WKHQHLJKERXULQJFDUGV 6HYHQRI6ZRUGV²57KHFDUGVZKLFKFRPHQH[WZLOOVKRZ ZKHWKHULWZLOOEHJRRGWRIROORZWKHDGYLFHJLYHQRUQRW$OVRWKH SUHFHGLQJFDUGVZLOOVKRZIURPZKRPDQGZK\WKHDGYLFHFRPHV )RXURI6ZRUGV²57KHFDUGVQHDUZLOOVKRZZKHWKHULWLVKHDOWK RUPRQH\WKDWUHTXLUHVFDUH 7KUHHRI6ZRUGV²50D\VKRZVLPSO\WKDWVRPHWKLQJLVORVWRU PLVODLGIRUDWLPH 'HXFHRI6ZRUGV²5,IFRQILUPHGE\WKHRWKHUFDUGVPD\VLPSO\ PHDQWKDWWKHIULHQGVDUHQRWRIPXFKXVHWRWKHLQTXLUHULQWKHPDWWHU XQGHUFRQVLGHUDWLRQ 4XHHQRI3HQWDFOHV²5,IWKLVFDUGGRHVQRWVLJQLI\DQ\ SDUWLFXODUSHUVRQ ,I55,WLVQRWVDLGWKDWWKHUHZLOOEHD /DZVXLW,I55,I\RXJDLQ\RXUFDVH\RXZRQ¶WEHPXFKWKH EHWWHUIRULW .QDYHRI3HQWDFOHV²5&RQVXOWWKHIROORZLQJFDUGVWRVHHLQ ZKDWWKHSHUVRQLVSURGLJDO,I55LWPD\VLPSO\PHDQWKDW WKHSHUVRQLVWRRIRQGRIJLYLQJDGYLFHLQWHUPHGGOHVWRRPXFKZLWK RWKHUSHRSOH¶VEXVLQHVV 6HYHQRI3HQWDFOHV²57KHQH[WFDUGZLOOVKRZWKHUHDVRQRIWKH DQ[LHW\DQGVRRQ )LYHRI3HQWDFOHV²6KRZVVLPSO\WKDWWKHUHLVVRPHRQHZKRP WKHSHUVRQORYHV 7KH&RXUW&DUGVDQGHVSHFLDOO\WKH.LQJVDQG4XHHQVPD\EHWDNHQ WRUHSUHVHQWSHUVRQVLQWKLVFDVHWKHLUDGGLWLRQDOPHDQLQJVKRXOGQRW EHUHDG7KH6ZRUGVUHSUHVHQWYHU\GDUNSHRSOH3HQWDFOHVWKRVHQRW VRGDUN&XSVUDWKHUIDLUSHRSOH:DQGVRU6FHSWUHVWKRVHPXFK

IDLUHUDQGVRRQ0DQ\:DQGVWRJHWKHUPLJKWVLJQLI\IHDVWLQJPDQ\ &XSVORYHPDNLQJ6ZRUGVTXDUUHOOLQJDQGWURXEOH&RLQVRU3HQWDFOHV PRQH\ :KHUHWKHPRGHRIUHDGLQJWKHFDUGVUHTXLUHVWKDWWKHSHUVRQ FRQVXOWLQJVKRXOGEHUHSUHVHQWHGKHVKRXOGWDNHRQHRIWKH.LQJVWR UHSUHVHQWKLPVHOIDFFRUGLQJWRKLVFRPSOH[LRQ,IDODG\FRQVXOWVWKH FDUGVOHWKHUWDNHRQHRIWKH4XHHQVLIVKHEHUDWKHUIDLUWKH4XHHQRI &XSVLIVKHEHYHU\IDLUWKH4XHHQRI:DQGVRU6FHSWUHV,IWKH LQTXLUHUEHTXLWHD\RXWKRUDER\OHWKLPWDNHRQHRIWKH.QLJKWVLID YHU\\RXQJJLUOOHWKHUWDNHWKH.QDYHHWF(WWHLOOD¶VSODQZDVWRWDNH WZRRIWKH.H\VIRU6LJQLILFDWRUVWKDWDQVZHULQJWRWKH3RSHIRUDPDQ WKDWDQVZHULQJWRWKH+LJK3ULHVWHVVIRUDZRPDQEXW,GRQRWWKLQN WKLVLVVRZHOO7KHZRUVWRI(WWHLOOD¶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²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²:LWKGUDZWKH.LQJRU4XHHQVHOHFWHGIRU WKH,QTXLUHU¶V6LJQLILFDWRUIURPWKHSDFN7KHQVKXIIOHDQGFXWWKH VDPHDVEHIRUH3ODFHWKH6LJQLILFDWRURQWKHWDEOHIDFHXSZDUGV OHDYLQJSOHQW\RIURRPIRUWKHVHOHFWHGFDUGVRQWKHOHIWKDQGVLGHRILW 1RZJRFDUHIXOO\WKURXJKWKHSDFNWDNLQJWKHWRSFDUGILUVWWKHQWKH VHYHQWKFDUGIURPLWDQGVRRQWKURXJKWKHSDFNUHFRPPHQFLQJLI QHFHVVDU\XQWLO\RXKDYHGUDZQFDUGVE\WDNLQJHYHU\VHYHQWK $UUDQJHWKHVHFDUGVLQWKUHHURZVRIVHYHQHDFKIURPULJKWWROHIW RQWKHOHIWKDQGVLGHRIWKH6LJQLILFDWRUWKXV   

  

  

  

  

  

6LJQLILFDWRU  

5HDGWKHPHDQLQJRIHDFKURZIURPULJKWWROHIWEHJLQQLQJZLWKWKH 6LJQLILFDWRUWKHQFRPELQHWKHVWDQGVWWKHQGDQGWKDQGVR RQDVLQWKHSUHYLRXVPHWKRG 7+,5'0(7+2'²7KLVPRGHRIOD\LQJRXWWKHFDUGVLVUDWKHU PRUHFRPSOLFDWHGWKDQWKHSUHFHGLQJ:LWKGUDZWKH6LJQLILFDWRUDQG VKXIIOHDQGFXWDVEHIRUH7KHQGHDOWKHPDVLQWKLVGLDJUDPIDFH XSZDUGV       
                

   

   

 
    
    
   
                                        
























   

   

   

        
  
           

               






        

        

  

   

                     



                    

       6LJQLILFDWRU                                                                  

              
             
                        

7KHFDUGVZLOOWKXVIRUPDWULDQJOHZLWKLQDVSHFLHVRIDUFKDQGWKH 6LJQLILFDWRURIWKH,QTXLUHULVWREHSODFHGLQWKHFHQWUHRIWKHWULDQJOH IDFHXSZDUGV7KHWRSFDUGLVWREHGHDOWRQQXPEHUWKHVHFRQGFDUG RQQXPEHUWKHWZHOIWKFDUGRQQXPEHUDQGVRRQXSWRQXPEHU ZKHQWKHUHPDLQLQJFDUGVDUHWREHSXWDVLGHDQGQRWXVHGLQWKH UHDGLQJ 7KHQWRDQGWRLQFOXVLYHZLOOVKRZWKHSDVWWRDQG WRLQFOXVLYHZLOOVKRZWKHSUHVHQWDQGWRDQGWR LQFOXVLYHZLOOVKRZWKHIXWXUH 1RZUHDGWKHPVLPSO\LQRUGHUIURPWRIRUWKHSDVWIURPWR IRUWKHSUHVHQWDQGIURPWRIRUWKHIXWXUH 7KHQFRPELQHWKH6LJQLILFDWRUZLWKHYHU\WZRFDUGVWKXV²66 6DQGVRRQXSWR6IRUWKHSDVW7KHQWDNH6 6DQGVRRQIRUWKHSUHVHQW$QGWKHQWDNH66XS WR6IRUWKHIXWXUH $JDLQYDU\WKHFRPELQDWLRQVE\WDNLQJ6XSWR6 IRUWKHSDVW6XSWR6IRUWKHSUHVHQWDQG 6XSWR6IRUWKHIXWXUH )LQDOO\FRPELQHWKHPDOOWRJHWKHUWKXV²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¶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

7KH)RROLVK0DQLVWKHORZHVWFDUGLQWKHSDFNLQSOD\LQJWKHKDQG FDQWDNHQRFDUGRIDQ\VXLWDQGPD\EHSOD\HGWRDFDUGRIDQ\VXLW )RULQVWDQFHLIWKHDGYHUVDU\OHDGVD.LQJDQG\RXKDYHRQO\WKH 4XHHQRIWKDWVXLWUHPDLQLQJLQ\RXUKDQGEXWKDYHDOVRWKH\RXFDQ SOD\WKLVLQVWHDGRIWKH4XHHQDQGWKXVVDYHKHUIURPEHLQJWDNHQ$ .LQJFXWFRXQWVSRLQWVWRZKRVRHYHUFXWVLW,QHDFKVXLW.LQJLV KLJKHVWWKHQFRPH4XHHQ.QLJKW.QDYH7HQ1LQHHWFGRZQWR $FHZKLFKLVORZHVWDQGFDQRQO\WDNHWKH7KH7UXPSVUHFNRQ IURPZKLFKLVKLJKHVWWRZKLFKLVORZHVW


               

3RLQWV              3RLQWV  

7KHHDFK7ULFNFRQWDLQLQJD4XHHQ  )RUHDFK7ULFNFRQWDLQLQJD.QLJKW  )RUHDFK7ULFNFRQWDLQLQJD.QDYH )RUHYHU\7ULFNRIWZRSODLQ&DUGV 

   

   

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

    

    

%XWFRQFHDOHGEHKLQGWKHLUDSSDUHQWO\DUELWUDU\DQGEL]DUUHGHVLJQVWKH 7DURW&DUGVFRQWDLQDIDUPRUHFRPSOLFDWHGV\VWHPRIUHFRQGLWH V\PEROLVP:HIPGWKHQXPEHUWHQPXOWLSOLHGE\WKHP\VWLFDOQXPEHU IRXUDQGFRPELQHGZLWKDSULPLWLYHKLHURJO\SKLFDOSKDEHWRIWZHQW\ WZROHWWHUV (OLSKDV/qYLVD\VLQKLV³+LVWRLUHGHOD0DJLH´³7KHDEVROXWH KLHURJO\SKLFDOVFLHQFHKDGIRULWVEDVLVDQDOSKDEHWRIZKLFKDOOWKH JRGVZHUHOHWWHUVDOOWKHOHWWHUVLGHDVDOOWKHLGHDVQXPEHUVDQGDOOWKH QXPEHUVSHUIHFWVLJQV ³7KLVKLHURJO\SKLFDODOSKDEHWRIZKLFK0RVHVPDGHWKHJUHDWVHFUHWRI KLV&DEDODDQGZKLFKKHUHWRRNIURPWKH(J\SWLDQVIRUDFFRUGLQJWR WKH6HSKHU
DQGWKHLUSKLORVRSKLFDOGHVFULSWLRQLVWKHVXEMHFWRIWKDWSULPLWLYHDQG UHYHUHGZRUNNQRZQDVWKH6HSKHU
$ERYHWKHPLVDVSKLQ[DWWKHEDODQFHSRLQWRIWKHZKHHOKROGLQJD GUDZQVZRUGEHWZHHQLWVOLRQ¶VFODZV 7KH'HYLO²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qEHOLQ¶V³0RQGH 3ULPLWLI´YROS