<(2










+2/(,17+(:$// 

$2QH5RXQG' '/,9,1**5(<+$:.
<HRPDQU\5HJLRQDO$GYHQWXUH
9HUVLRQ





E\(ULF:LOOLDPVRQ






)UHHKROGHU0DULXV/LQGRQKDVVHQWQRWLFH\RXKDYHEHHQFKRVHQWRUHSUHVHQWWKH<HRPDQU\RQDPLVVLRQRIGLSORPDF\
WRWKHODUJHVW+LOOPDQFODQLQWKHQRUWKHUQ/LWWOH+LOOV $WHVWKDVEHHQDUUDQJHGE\WKLVFODQWRSURYHWKHWUXHZRUWKRI
WKH<HRPDQU\DVDOOLHV:LOO\RXSURYH\RXUVHOIZRUWK\RUIDLOWKHQDWLRQ"









'81*(216 '5$*216' '*5(<+$:.DQG53*$DUHUHJLVWHUHGWUDGHPDUNVRI:L]DUGVRI
WKH &RDVW ,QF /,9,1* *5(<+$:. LV D WUDGHPDUN RI :L]DUGV RI WKH &RDVW ,QF 6FHQDULR GHWDLO
FRS\ULJKWE\:L]DUGVRIWKH&RDVW,QF$//5,*+765(6(59('7KLVVFHQDULRLVLQWHQGHGIRU
WRXUQDPHQWXVHRQO\DQGPD\QRWEHUHSURGXFHGZLWKRXWDSSURYDORIWKH53*$1HWZRUN 


7KLV LV DQ 53*$ 1HWZRUN VFHQDULR IRU WKH 'XQJHRQV 
'UDJRQVJDPH$IRXUKRXUWLPHEORFNKDVEHHQDOORFDWHG
IRUHDFKURXQGRIWKLVVFHQDULREXWWKHDFWXDOSOD\LQJWLPH
ZLOOEHFORVHUWRWKUHHKRXUV7KHUHVWRIWKHWLPHLVVSHQWLQ
SUHSDUDWLRQ EHIRUH JDPH SOD\ DQG VFRULQJ DIWHU WKH JDPH
7KHIROORZLQJJXLGHOLQHVDUHKHUHWRKHOS\RXZLWKERWKWKH
SUHSDUDWLRQDQGYRWLQJVHJPHQWRIWKHJDPH5HDGWKLVSDJH
FDUHIXOO\ VR WKDW \RX NQRZ DQG FDQ FRPPXQLFDWH WR \RXU
SOD\HUVWKHVSHFLDODVSHFWVRISOD\LQJDQ53*$VFHQDULR
 WKH WRS RI WKH JULG 7KDW LV DOO 1R RQH LV UDWHG 7KLV
35(3$5$7,21
)LUVW \RX VKRXOG SULQW WKLV VFHQDULR 7KLV VFHQDULR ZDV
FUHDWHG WR VXSSRUW GRXEOHVLGHG SULQWLQJ EXW SULQWLQJ LW
VLQJOHVLGHGZLOOZRUNDVZHOO7KHUHLVHQRXJKURRPDORQJ
WKHLQVLGHPDUJLQWRELQGWKHDGYHQWXUHLI\RXGHVLUH
 5HDGWKLVHQWLUHDGYHQWXUHDWOHDVWRQFHEHIRUH\RXUXQ
\RXUJDPH%HVXUHWRIDPLOLDUL]H\RXUVHOIZLWKDQ\VSHFLDO
UXOHV VSHOOV RU HTXLSPHQW SUHVHQWHG LQ WKH DGYHQWXUH ,W
PD\KHOSWRKLJKOLJKWSDUWLFXODUO\LPSRUWDQWSDVVDJHV
 :KHQ \RX UXQ DQ 53*$ ' ' DGYHQWXUH ZH DVVXPH
WKDW \RX KDYH DFFHVV WR WKH IROORZLQJ ERRNV WKH 3OD\HUV
+DQGERRN WKH 'XQJHRQ 0DVWHUV *XLGH DQG WKH 0RQVWHU
0DQXDO:HDOVRDVVXPHWKDW\RXKDYHDVHWRIGLFHDWOHDVW
6&25,1*
$IWHU WKH SOD\HUV KDYH FRPSOHWHG WKH VFHQDULR RUWKHWLPH
DOORWWHGWRUXQWKHVFHQDULRKDVUXQRXWWKHSOD\HUVDQG'0
VFRUH WKH JDPH 7KH 53*$ KDV WKUHH ZD\V WR VFRUH LWV
JDPHV&RQVXOW\RXUFRQYHQWLRQFRRUGLQDWRUWRGHWHUPLQH
ZKLFKPHWKRGWRXVHIRUWKLVVFHQDULR
 1RYRWH VFRULQJ 7KH SOD\HUV ZULWH WKHLU QDPHV DQG
53*$QXPEHUVRQWKHVFRULQJSDFNHWJULG<RXILOOLQ
PHWKRGLVXVHGIRUSHRSOHZKRDUHMXVWSOD\LQJIRUIXQ
 3DUWLDO VFRULQJ 7KH SOD\HUV UDWH WKH JDPH PDVWHU DQG
WKHVFHQDULRRQWKHLUSOD\HUYRWLQJVKHHWDQGSURYLGH
SHUVRQDOLQIRUPDWLRQEXWGRQWYRWHIRURWKHUSOD\HUV
7KH JDPH PDVWHU UDWHV WKH VFHQDULR DQG FRPSOHWHV
SHUVRQDODQGHYHQWLQIRUPDWLRQEXWGRHVQRWUDWHWKH
SOD\HUV DV D WHDP RU YRWH IRU SOD\HUV 7KLV PHWKRG LV
XVHG ZKHQ WKHUH LV QR FRPSHWLWLRQ EXW WKH HYHQW
FRRUGLQDWRU ZDQWV LQIRUPDWLRQ RQ KRZ WKH JDPH
PDVWHUV DUH SHUIRUPLQJ RU WKH JDPH PDVWHU ZDQWV
IHHGEDFNRQKLVRUKHURZQSHUIRUPDQFH
9RWLQJ 3OD\HUV DQG JDPH PDVWHUV FRPSOHWH WKH HQWLUH
SDFNHW LQFOXGLQJ YRWLQJ IRU EHVW SOD\HU ,I WKLV PHWKRG LV
XVHGEHVXUHWRDOORZDERXWPLQXWHVIRUWKHSOD\HUVWR
RQH G G G G G DQG G VRPH VFUDS SDSHU D
SHQFLODQ53*$VFRULQJSDFNHWDQG\RXUVHQVHRIIXQ,WLV
DOVR D JRRG LGHD WR KDYH D ZD\ WR WUDFN PRYHPHQW GXULQJ
FRPEDW7KLVFDQEHDVVLPSOHDVDSDGRIJUDSKSDSHUDQGD
SHQFLO DV KDQG\ DV D YLQ\O JULG PDS DQG FKLWV RU DV
HODERUDWHDVUHVLQGXQJHRQZDOOVDQGPLQLDWXUHV
 ,QVWUXFW WKH SOD\HUV HLWKHU WR SUHSDUH WKHLU FKDUDFWHUV
QRZRUZDLWXQWLO\RXUHDGWKHLQWURGXFWLRQGHSHQGLQJRQ
WKH UHTXLUHPHQWV RI WKH VFHQDULR DV GHVFULEHG LQ WKH
LQWURGXFWLRQ
 .HHSLQPLQGWKDW\RXPXVWKDYHDWOHDVWIRXUSOD\HUV
EULHIO\ GHVFULEH WKHLU FKDUDFWHUV WR WKH RWKHU SOD\HUV DQG
DERXW  PLQXWHV IRU YRWLQJ 7KLV PHWKRG LV XVHG ZKHQ
WKHSOD\HUVZDQWWRNQRZZKRSOD\HGWKH|EHVW}DPRQJWKH
JURXSRUZKHQWKHDGYHQWXUHLVUXQLQWRXUQDPHQWIRUPDW
ZLWKZLQQHUVDQGSUL]HV

:KHQXVLQJYRWLQJUDQNWKHSOD\HUVLQRUGHURI\RXUYRWLQJ
FKRLFH ZKLOH WKH\ DUH FRPSOHWLQJ WKHLU IRUPV VR WKDW \RX
DUHQRWLQIOXHQFHGE\WKHLUFRPPHQWVRQ\RXUDELOLWLHV,WV
D JRRG LGHD WR KDYH WKH SOD\HUV YRWH ZKLOH \RX GHWHUPLQH
WUHDVXUHDQGH[SHULHQFHDZDUGVIRUWKHVFHQDULR
QRW FRXQWLQJ WKH '0 IRU WKH JDPH VHVVLRQ WR EH D  $IWHU YRWLQJ JLYH WKH 6FRULQJ 3DFNHW WR \RXU HYHQW
VDQFWLRQHG 53*$ HYHQW $V ZHOO \RX FDQQRW KDYH PRUH FRRUGLQDWRU
WKDQVHYHQSOD\HUVSDUWLFLSDWLQJLQWKHJDPH
 2QFH\RXDUHUHDG\WRSOD\LWLVKDQG\WRLQVWUXFWHDFK
SOD\HU WR SODFH D QDPHWDJ LQ IURQW RI KLP RU KHU 7KH WDJ
VKRXOG KDYH WKH SOD\HUV QDPH DW WKH ERWWRP DQG WKH
FKDUDFWHUVQDPHUDFHDQGJHQGHUDWWKHWRS7KLVPDNHVLW
HDVLHUIRUWKHSOD\HUVDQGWKH'0WRNHHSWUDFNRIZKRLV
SOD\LQJZKLFKFKDUDFWHU
 7KH SOD\HUV DUH IUHH WR XVH WKH JDPH UXOHV WR OHDUQ
DERXWHTXLSPHQWDQGZHDSRQVWKHLUFKDUDFWHUVDUHFDUU\LQJ
7KDW VDLG \RX DV WKH '0 FDQ EDU WKH XVH RI HYHQ FRUH
UXOHERRNV GXULQJ FHUWDLQ WLPHV RI SOD\ )RU H[DPSOH WKH
SOD\HUVDUHQRWIUHHWRFRQVXOWWKH'XQJHRQ0DVWHUV*XLGH
ZKHQ FRQIURQWHG ZLWK D WUDS RU KD]DUG RU WKH 0RQVWHU
0DQXDOZKHQFRQIURQWHGZLWKDPRQVWHU
 6RPHRIWKHWH[WLQWKLVVFHQDULRLVZULWWHQVRWKDW\RX
PD\SUHVHQWLWDVZULWWHQWRWKHSOD\HUVZKLOHRWKHUWH[WLV
IRU\RXUH\HVRQO\7H[WIRUWKHSOD\HUVZLOOEHLQJUD\ER[HV
,WV VWURQJO\ UHFRPPHQGHG WKDW \RX SDUDSKUDVH WKH SOD\HU
WH[WLQVWHDGRIUHDGLQJLWDORXG6RPHRIWKLVWH[WLVJHQHUDO
DQGPXVWEHDGDSWHGWRWKHVSHFLILFVLWXDWLRQRUWRDFWLRQVRI
WKHSOD\HUFKDUDFWHUV


+ROHLQWKH:DOO  3DJH
7KLV LV D /,9,1* *5(<+$:. $GYHQWXUH $V D /LYLQJ
DGYHQWXUHLWLVH[SHFWHGWKDWSOD\HUVZLOOEULQJWKHLURZQ
FKDUDFWHUV ZLWK WKHP ,I SOD\HUV GR QRW KDYH D /,9,1*
*5(<+$:.FKDUDFWHUJHQHUDWHGJHWDFRS\RIWKHFXUUHQW
/,9,1* *5(<+$:. FKDUDFWHU JHQHUDWLRQ JXLGHOLQHV D
FKDUDFWHU VKHHW DQG D /,9,1* *5(<+$:.ORJVKHHWIURP
\RXUFRQYHQWLRQFRRUGLQDWRURUWKH53*$:HEVLWHDQG
WKHQ KDYH DQ\ SOD\HUV ZLWKRXW D FKDUDFWHU FUHDWH RQH
2QFHDOOSOD\HUVKDYHD/,9,1**5(<+$:.FKDUDFWHUSOD\
FDQEHJLQ
 $ORQJZLWKWKHRWKHUPDWHULDOVWKDW\RXDUHDVVXPHG
WR KDYH LQ RUGHU WR UXQ D ' ' JDPH LW LV DOVR
UHFRPPHQGHG WKDW \RX KDYH D FRS\ RI WKH /,9,1*
$3/ WKDW WKLV DGYHQWXUH LV SOD\HG DW SOD\LQJ DW WKDW
FKDUDFWHU ZLOO UHFHLYH RQO\ KDOI RI WKH H[SHULHQFH SRLQWV
DZDUGHG IRU WKH DGYHQWXUH 7KLV VLPXODWHV WKH IDFW WKDW
HLWKHU\RXUFKDUDFWHUZDVQRWDVFKDOOHQJHGDVQRUPDORU
UHOLHG RQ KHOS E\ KLJKHUOHYHO FKDUDFWHUV WR UHDFK WKH
REMHFWLYHV

1RWH/,9,1**5(<+$:.DGYHQWXUHVDUHGHVLJQHGIRU$3/
 DQG KLJKHU 7KUHH RU IRXU RU VRPHWLPHV HYHQ ILYH VW
OHYHOFKDUDFWHUVPD\ILQGGLIILFXOW\ZLWKWKHFKDOOHQJHVLQ
D /,9,1* *5(<+$:. DGYHQWXUH ,I \RXU JURXS LV $3/ 
WKHUH DUH WKUHH WKLQJV WKDW \RX FDQ GR WR KHOS HYHQ WKH
VFRUH
*5(<+$:.*D]HWWHHU  $WWHPSW WR FUHDWH D WDEOH RI VL[ VWOHYHO
 FKDUDFWHUVRUWU\WRHQOLVWKLJKHUOHYHOFKDUDFWHUV
WRSOD\DWWKDWWDEOH
'(7(50,1,1*$9(5$*(  $GYLVH FKDUDFWHUV WR EX\ ULGLQJ GRJV WR KHOS
3$57</(9(/$3/ SURWHFWWKHPDQGILJKWIRUWKHP$OOULGLQJGRJV
DUH FRQVLGHUHG WUDLQHG WR DWWDFN 3&V ZKR ZDQW
%HFDXVH SOD\HUV EULQJ WKHLU RZQ FKDUDFWHUV WR /,9,1* WKHLU GRJ WR DWWDFN WKH\ PXVW VXFFHHG DW D
*5(<+$:. JDPHV WKLV DGYHQWXUHV FKDOOHQJHV DUH +DQGOH $QLPDO RU &KDULVPD FKHFN '& 
SURSRUWLRQHG WR WKH DYHUDJH FKDUDFWHU OHYHO RI WKH 3&V )DLOXUH LQGLFDWHV WKDW WKH DQLPDO ZLOO QRW DWWDFN
SDUWLFLSDWLQJLQWKHDGYHQWXUH7RGHWHUPLQHWKH$YHUDJH WKDW URXQG 7KLV LV D IUHH DFWLRQ VSRNHQ
3DUW\/HYHO$3/ FRPPDQGWKDWPD\EHDWWHPSWHGHDFKURXQG,I
 'HWHUPLQH WKH FKDUDFWHU OHYHO IRU HDFK 3& DQDQLPDOORVHVKDOIRUPRUHKSLQDVLQJOHURXQG
SDUWLFLSDWLQJLQWKHDGYHQWXUH LWIOHHVXQOHVVDQRWKHUFKHFNLVVXFFHVVIXO
 ,I 3&V EULQJ DQLPDOV WKDW KDYH EHHQ WUDLQHG IRU  $ JURXS RI $3/  DGYHQWXUHUV ZKR GHVLUH DQ
FRPEDWPRVWOLNHO\ZDUKRUVHVGRJVWUDLQHGIRU H[WUD KDQG FDQ |HQOLVW DQ LFRQLF} 7KH VWDWV IRU
ZDU RWKHU WKDQ WKRVH EURXJKW E\ YLUWXH RI D WKH VWOHYHO YHUVLRQV RI 7RUGHN 0LDOHH /LGGD
FODVV DELOLW\ LH DQLPDO FRPSDQLRQV IDPLOLDUV DQG-R]DQDUHJLYHQDWWKHHQGRIHDFKDGYHQWXUH
SDODGLQVPRXQWVHWFXVHWKHIROORZLQJFKDUWWR 7KH JURXS PD\ SLFN RQH RI WKHVH FKDUDFWHUV WR
GHWHUPLQH WKH QXPEHU RI OHYHOV \RX DGG WR WKH MRLQW WKHP RQ WKLV DGYHQWXUH 7KH '0 FRQWUROV
VXP DERYH $GG HDFK FKDUDFWHUV DQLPDOV WKDW13&
VHSDUDWHO\ $ VLQJOH 3& PD\ RQO\ EULQJ IRXU RU 
IHZHU DQLPDOV RI WKLV W\SH DQG DQLPDOV ZLWK ,I \RX DUH XVLQJ D  &< DGYHQWXUH FDPSDLJQ \HDU 
GLIIHUHQW&5VDUHDGGHGVHSDUDWHO\ WKDWXVHVWKHROG$3/VDVVXPHWKDWWKH$3/PXOWLSOLHGE\
  &5      LVWKH$3/VXLWDEOHIRUWKDWHQFRXQWHU
  DQG     
  DQG     ,6,7$)8//0221"
       
        6LQFHWKHKD]DUGVRIO\FDQWKURS\DUHDFXUUHQWSDUWRIWKH
        /,9,1* *5(<+$:. FDPSDLJQ LW PD\ EH QHFHVVDU\ WR
       GHWHUPLQH LI WKLV DGYHQWXUH WDNHV SODFH GXULQJ D IXOO
 6XP WKH UHVXOWV RI  DQG  DQG GLYLGH E\ WKH PRRQ)RUJDPHSXUSRVHVWKHIXOOPRRQODVWVWKUHHGD\V
QXPEHU RI FKDUDFWHUV SOD\LQJ LQ WKH RIHDFKPRQWK)RUDJLYHQVFHQDULRWKDWGRHVQRWVWDWHWKH
DGYHQWXUH{URXQGXS SKDVH RI WKH PRRQ UROO G EHIRUH SOD\ EHJLQV 2Q D
 ,I\RXDUHUXQQLQJDWDEOHRIVL[3&VDGGRQHWR UHVXOW RI  WKH ILUVW GD\ RI WKH VFHQDULR LV D QLJKW RI WKH
WKDWDYHUDJH IXOOPRRQUROOGWRGHWHUPLQHZKHUHLQWKHVHTXHQFHRI
 WKUHHQLJKWVLWIDOOV
%\ IROORZLQJ WKHVH IRXU VWHSV \RX ZLOO KDYH GHWHUPLQHG
WKH$3/7KURXJKRXWWKLVDGYHQWXUH$3/VFDWHJRUL]HWKH
OHYHO RI FKDOOHQJH WKH 3&V ZLOO IDFH $3/V DUH JLYHQ LQ
HYHQQXPEHUHG LQFUHPHQWV ,I WKH $3/ RI \RXU JURXS
IDOOV RQ DQ RGG QXPEHU DVN WKHP EHIRUH WKH DGYHQWXUH
EHJLQVZKHWKHUWKH\ZRXOGOLNHWRSOD\DKDUGHURUHDVLHU
DGYHQWXUH%DVHGRQWKHLUFKRLFHXVHHLWKHUWKHKLJKHURU
WKHORZHUDGMDFHQW$3/
 $3/ DOVR DIIHFWV WKH DPRXQW RI H[SHULHQFH \RX PD\
JDLQDWWKHHQGRIDQDGYHQWXUH,I\RXUFKDUDFWHULVWKUHH
FKDUDFWHU OHYHOV RU PRUH HLWKHU KLJKHU RU ORZHU WKDQ WKH
+ROHLQWKH:DOO

/,)(67</(
$WWKHEHJLQQLQJRIHYHU\VFHQDULRHDFK3&LVUHTXLUHGWR
SD\XSNHHSFRVWVPDWFKLQJWKHOHYHORIOLIHVW\OHWKH\ZLVK
WR PDLQWDLQ 7KH OLIHVW\OHV DQG WKH HIIHFWV WKDW HDFK KDV
RQSOD\DUH

'HVWLWXWH <RX KDYH QR OLYLQJ VSDFH DQG PXVW FDUU\ DOO
\RXU JHDU HYHU\ZKHUH <RX HDW SRRU TXDOLW\ IRRG <RX
ZHDUDSHDVDQWRXWILW\RXURQO\FKDQJHRIFORWKHV

 3DJH
3RRU <RX VOHHS LQ SRRU DFFRPPRGDWLRQV DQG HDW SRRU
TXDOLW\IRRG<RXZHDUDSHDVDQWRXWILWDQGKDYHWZRVHWV
RIFORWKLQJ

&RPPRQ <RX KDYH FRPPRQ ORGJLQJV DQGHDWFRPPRQ
TXDOLW\ IRRG <RX KDYH QRUPDO FORWKLQJ IRU \RXU
SURIHVVLRQ DGYHQWXULQJ QRWKLQJ IDQF\ <RX SUREDEO\
KDYHWZRRUWKUHHVHWVRIFORWKLQJ

+LJK <RX VWD\ LQ JRRG TXDOLW\ ORGJLQJV DQG HDW JRRG
TXDOLW\ IRRG <RX ZHDU DQ\WKLQJ LQYDOXHXSWRFRXUWLHUV
RXWILWVDQGJHQHUDOO\EX\DQHZVHWRIFORWKLQJHYHU\WZR
ZHHNV

/X[XU\ <RX KDYH OX[XULRXV DFFRPPRGDWLRQV WZLFH WKH
FRVW RI JRRG DFFRPPRGDWLRQV DQG \RX HDW H[FHOOHQW
IRRGV <RX FDQ WKURZ D EDQTXHW IRU \RXU IULHQGV HYHU\
GD\DQGIUHTXHQWO\GR<RXZHDUFORWKLQJXSWRWKHYDOXH
RIQREOHVRXWILWDQGEX\DQHZVHWRIFORWKHVHYHU\ZHHN

/LIHVW\OHV FRPH ZLWK ERQXVHV RU SHQDOWLHV WR 'LSORPDF\
,QWLPLGDWH 'LVJXLVH DQG %OXII VNLOO FKHFNV 7KHVH
SHQDOWLHV VKRZQ EHORZ VKRXOG EH DSSOLHG DW WKH '0V
GLVFUHWLRQ DQG FDQ VRPHWLPHV EDFNILUH{IRU H[DPSOH D
3& ZLWK D SRRU OLIHVW\OH ZRXOG QRW KDYH D SHQDOW\ ZKHQ
WDONLQJ WR D EHJJDU EXW ZRXOG ZKHQ WDONLQJ WR D FLW\
RIILFLDO $ 3& ZLWK D KLJK OLIHVW\OH VKRXOG KDYHDSHQDOW\
ZKHQ GHDOLQJ ZLWK D JURXS RI VWUHHW WKXJV ZKHUH D 3&
ZLWKDGHVWLWXWHOLIHVW\OHPLJKWQRW
 '0V DUH HQFRXUDJHG WR UROHSOD\ WKHVH UHDFWLRQV
ZKHQHYHUSRVVLEOH

/LIHVW\OH&RVW 6NLOO0RGLILHU
'HVWLWXWH VS  
3RRU  VS  
&RPPRQ JS  
+LJK  JS  
/X[XU\  JS  


+ROHLQWKH:DOO  3DJH

'0}6%$&.*5281'
*LDQWV 'XULQJ WKH *UH\KDZN :DUV WKH <HRPDQU\ ZDV
ZLOOLQJ WR DLG WKH QRUWKHUQ NLQJGRPV LQ WKHLU VWUXJJOHV
DJDLQVW WKH GHPRQOHG WURRSV RI ,X] EXW JLDQW WURXEOHV
JXDUDQWHHG WKDW LWV IRUFHV KDG WR VWD\ ZLWKLQ WKH QDWLRQ
V  \HDUV DJR 7KRXJK KH OHG ZLVHO\ KLV VRQ 5HXQ D
FRQILQHV 8QOLNH WKH XQIRUWXQDWHV RI *HRII DQG 6WHULFK
WKHVWRXWZHOOWUDLQHGDQGDUPHG<HRPHQIRXJKWRIIWKH
JLDQWKXPDQRLG LQFXUVLRQV DQG WKLV VWDWH UHPDLQV D
VWURQJSRZHUIXODQGZHOOHTXLSSHGDUPHGFDPS
7KH QHZ )UHHKROGHU RI WKH <HRPDQU\ 0DULXV /LQGRQ
/DFKWQD DQG WKH HYLO 6LWKLJ UHPDLQ GRJJHGO\
LQGHSHQGHQW

7KH /HJDF\ RI 5RQDQ 7KH +LOOPDQ 5RQDQ ZDV FKLHIWDLQ
RI&ODQKROG&XPDOKJUHDWHVWRIWKHFODQVRI/DFKWQDRYHU
VNLOOHG ZDUULRU JUHZ SULGHIXO RI KLV DELOLW\ DQG VWDWLRQ
RIIHQGLQJ PDQ\ FODQVPHQ DV D PDQRIOLWWOHKRQRU$IWHU
KLV IDWKHUV GHDWK LQ EDWWOH 5HXQV ULJKW WR OHDG ZDV
FKDOOHQJHG E\ /DUHQ WKH JUHDWHVW RI 5RQDQV ZDUULRUV
5HXQ IHDUHG KH ZRXOG ORVH WKLV EDWWOH DQG VR KH OHIW KLV
HOHFWHG LQ  &< KDV FRQFHQWUDWHG KLV HIIRUWV IRU WKH QHZ ZLIH DQG WKHLU LQIDQW VRQ 2VLDQ DEDQGRQLQJ WKH
SDVW WZR \HDUV RQ WKH JLDQW WURXEOHV LQ WKH QRUWK 5DLGV WUDGLWLRQV RI KLV FODQ DQG VQXFN LQWR RQH RI WKH VDFUHG
IURP WKH -RWHQV LQ  &< DQG HDUO\  &< WKUHDWHQHG EDUURZPRXQGV GRWWLQJ WKH KLOOV LQ KRSHV RI DFTXLULQJ
WKH FLW\ RI /RIWZLFN LWVHOI DQG KH KDV VHW DERXW SRZHUIXO PDJLF WR GHIHDW /DUHQ 7KHUH KH PHW DQ
UHLQIRUFLQJLWVGHIHQVHVOHVWKLVUHDOPVXIIHUDIDWHVLPLODU XQWLPHO\ GHPLVH DW WKH KDQGV RI D WUDSSHG FKHVW FUHDWHG
WR6WHULFKRU*HRII IRU WKH IH\ LQKDELWDQWV RI WKH PRXQG E\ D ORQJGHDG
 ZL]DUG 7KH IH\ ZKR KDG QRW HYHQ NQRZQ WKH QDWXUH RI
-RWHQV 7KH -RWHQV LV WKH ODUJHVW VSXU RI WKH &U\VWDOPLVW WKHWUDSODLGRQWKHFKHVWQHYHUH[SHFWHGLWWRNLOODQ\RQH
PRXQWDLQ FKDLQ 7KH -RWHQV DUH NQRZQ DV WKH OHJHQGDU\ PXFKOHVVWXUQWKHPLQWRDIRXOXQGHDGFUHDWXUH8QDEOH
KRPH RI QXPHURXV WULEHV RI DQWDJRQLVWLF KLOO JLDQWV DQG WR GHIHDW WKH FUHDWXUH WKH\ ZHUH IRUFHG WR DEDQGRQ WKH
VFDWWHUHG EDQGV RI FORXG DQG VWRQH JLDQWV DUH NQRZQ WR PRXQG
GZHOO ZLWKLQWKH-RWHQVDVZHOO7KHVRXWKHUQHQGRIWKH
UDQJHLVZHOOSURWHFWHGE\VWXUG\ORQJUDQJLQJ<HRPDQU\ 
VSHDUPHQDQGDOOLHGGZDUYHQLUUHJXODUV7KH\GHIHQGWKH
IHUWLOHYDOOH\IURPLQYDGHUVYLDDQXPEHURIZHOOIRUWLILHG $'9(1785(%$&.*5281'
VWURQJKROGV DQG FLWDGHOV WKDW OLQH WKH ERUGHU )LJKWLQJ :LWK WKH SRWHQWLDO IRU IXUWKHU LQFXUVLRQ E\ JLDQWV IURP
EHWZHHQWKHJLDQWVDQGWKHSHRSOHRI6WHULFKFRQWLQXHVWR WKH -RWHQV )UHHKROGHU 0DULXV /LQGRQ VHHNV ZD\V WR
WKHQRUWK IRUWLI\ WKH ERUGHUV RI WKH <HRPDQU\ $V FRQVWUXFWLRQ RI
 DQRWKHUIRUWDORQJWKH-RWHQ/LWWOH+LOOVERUGHUZRXOGEH
/LWWOH +LOOV 7KH /LWWOH +LOOV IRUP WKH HDVWHUQ %RUGHU RI ERWK H[SHQVLYH DQG WLPHFRQVXPLQJ /LQGRQV DGYLVHUV
WKH<HRPDQU\ZKHUHWKH-RWHQVWXUQVRXWKWRIROORZWKH KDYH VXJJHVWHG DQRWKHU FRXUVH RI DFWLRQ VWUHQJWKHQ WKH
FRXUVHRIWKHPLJKW\-DYDQ5LYHU7KHKLOOVDUH
OLWWOH
RQO\ <HRPDQU\V UHODWLRQVKLS ZLWK WKH LQGHSHQGHQW +LOOPHQ
LQ FRPSDULVRQ WR WKH PLJKW\ -RWHQV WKDW ORRP DERYH FODQV RI WKH /DFKWQD WULEH OLYLQJ LQ WKH QRUWKHUQ /LWWOH
WKHP&RQVLGHUDEOHQXPEHUVRIGHPLKXPDQVGZHOOLQWKH +LOOV 7KHVH FODQV ZKLOH QRW KRVWLOH WR WKH <HRPDQU\
/LWWOH +LOOV DORQJ ZLWK FRPPXQLWLHV RI KXPDQV 7KH KDYH QHYHU FKRVHQ WR MRLQ WKH /HDJXH DV FLWL]HQV 7KH\
+LOOPHQ DQG GZDUYHV ZKR SRSXODWH WKH /LWWOH +LOOV DUH DFWLYHO\ SURWHFW WKH ERXQGDULHV RI WKHLU WHUULWRU\ IURP
NQRZQ IRU WKHLU IHURFLW\ LQ EDWWOH DQG KDYH EHHQ LQFXUVLRQV EXW JHQHUDOO\ GR QRW LQWHUYHQH LQ WURXEOHV
HPSOR\HG LQ .HRODQG DV PHUFHQDULHV IRU FHQWXULHV 7KH EH\RQG WKHLU ERUGHUV RU HYHQ ZDUQ QHLJKERULQJ
FLW\RI/RQJVSHDULQWKHIRRWKLOOVRIWKH/LWWOH+LOOVLVDQ FRPPXQLWLHV RI SRVVLEOH GDQJHU 7KH ODUJHVW RI WKHVH
DFWLYH WUDGH FHQWHU DQG JXDUGV WKH QRUWKHDVWHUQPRVW &ODQ &XPDOK GHIHQGV LWV WHUULWRU\ IURP DQ DQFLHQW
SRLQWRIWKH<HRPDQU\/HDJXH KLOOIRUW URXJKO\ PLGZD\ EHWZHHQ )RUW 7KRPDV DQG )RUW
 $XJXVW :LQQLQJ &XPDOK RYHU WR WKH VLGH RI WKH
+LOOPHQ 7KH +LOOPHQ DUH WKH FORVHVW RQH FDQ ILQG WR <HRPDQU\HLWKHUDVDQDOO\RUDVSRWHQWLDOFLWL]HQVZLOOJR
SXUHEORRG )ODQ LQ WKH <HRPDQU\ WRGD\ :KLOH JHQHUDOO\ IDUWRLQVSLUHWKHVPDOOHUFODQVWRGROLNHZLVH
2HULGLDQ DQG 6XHO DQFHVWU\ LVHYLGHQWLQPDQ\WULEHVE\  $GHOHJDWLRQVHQWWR&ODQKROG&XPDOKUHWXUQHGZLWK
WKLFN EHDUGV RU ILHU\ UHG KDLU IRU LQVWDQFH WKH +LOOPHQ
DV D ZKROH H[KLELW WKH GDUN VNLQ DQG ZDY\ EODFN KDLU RI
WKHLU )ODQ KHULWDJH &XOWXUDOO\ FXW RII IURP WKH )ODQ RI
RWKHUQDWLRQVVXFKDV*HRIIWKH+LOOPHQKDYHGHYHORSHG
WKHLU RZQ GLVWLQFW ZD\ RI OLIH RYHU WKH PLOOHQQLD 7KHLU
KXQWHUJDWKHUHU EDFNJURXQG LV VWLOO DSSDUHQW LQ PDQ\ RI
WKH FXVWRPV SUDFWLFHG E\ WKH +LOOPHQ DQG DV SHRSOH RI
WUDGLWLRQ WKH\ DGDSW WR RWKHU FXOWXUHV DQG FXVWRPV YHU\
VORZO\ 'XULQJ WKH <HRPDQU\V HDUO\ VWUXJJOHV IRU
LQGHSHQGHQFH IURP WKH KDWHG PDJH $VEHUGLHV RQH ODUJH
WULEH RI +LOOPHQ WKH 'RQQFKDGK DLGHG WKH IOHGJOLQJ
GHPRFUDF\ 7KH DOOLDQFH ZLWK WKH 'RQQFKDGK WULEH KDV
ODVWHG IRU  \HDUV DQG PDQ\ RI LWV PHPEHUV DUH DOVR
FLWL]HQV RI WKH /HDJXH 7ZR RWKHU WULEHV WKH QHXWUDO
+ROHLQWKH:DOO
KRSHIXO EXW XQXVXDO QHZV 7KH FODQ VHHU KDG IRUHVHHQ
WKHLU FRPLQJ DQG WKH FODQ FKLHI PHW WKH HQYR\V DW KLV
ERUGHUZLWKWKHVHZRUGV|:HNQRZRI\RXUFRPLQJDQG
ZKDW\RXVHHNEXW\RXDUHQRWWKH<HRPDQU\2QHRIRXU
FODQ ZLOO DUULYH ZLWK WKH VXQ LQ WKH FLW\ RI 6LQJOHWRQ RQ
:DWHUGD\ LQ IRXU ZHHNV WLPH7KHIROORZLQJSHRSOHPD\
EH SUHVHQW WR VKRZ RXU FODQ ZKDW LW PHDQV WR EH
<HRPDQw}+HFRQWLQXHGGHVFULELQJYDULRXVLQGLYLGXDOV
DOOVXSSRVHGO\WREHIRXQGZLWKLQWKHFRPPXQLWLHVRIWKH
/HDJXH 6RPH ZHUH FLWL]HQV RWKHUV ZHUH QRW DQG VRPH
ZHUHQRWHYHQIURPWKH<HRPDQU\%XWWKHLQWHQWLRQZDV
FOHDUWKHVHSHRSOHPXVWEHIRXQGDQGFRQYLQFHGWRPHHW
WKH &XPDOK HPLVVDU\ LQ WKH FLW\ RI 6LQJOHWRQ 7KH FKLHI
PHQWLRQHG D VHULHV RI WHVWV WKDW ZRXOG UHYHDO WKH WUXH
 3DJH
QDWXUH RI WKH <HRPDQU\ WR KLV FODQ DQG WKHVH FKRVHQ
PXVWSDVVWKRVHWHVWVWRZLQWKHVXSSRUWRI&XPDOK
 5XQQHUVZHUHGLVSDWFKHGWRHYHU\UHJLRQVHHNLQJWR
ILQGWKHFKRVHQLQWLPH6RPHFRXOGQRWEHIRXQGRWKHUV
UHIXVHGWKHWHVWIRUIHDURIWKH+LOOPHQIHURFLW\%XWVRPH
ZHUHIRXQGDQGZHUHZLOOLQJWRUHSUHVHQWWKH<HRPDQU\
,WZRXOGKDYHWREHHQRXJK1RZWKHWLPHKDVFRPHWKH
FKRVHQ DUH JDWKHUHG LQ WKH FLW\ RI 6LQJOHWRQ ,W LV WKH
QLJKW RI *RGVGD\ DQG WKH +LOOPDQ ZLOO DUULYH |ZLWK WKH
VXQ}w
 ERG\ RI D +LOOPDQ +H ZDUQV WKHP RI HYLO XQGHDG WKDW
$'9(1785(6<1236,6
8QEHNQRZQVW WR WKH 3&V WKRVH FKRVHQ WRUHSUHVHQWWKH
XUJHQF\ KH DQQRXQFHV WR WKH SDUW\ WKDW WKH WHVW RI
VWUHQJWKEHJLQVQRZ
 7KH 3&V IROORZLQJ &RQQRFK DQG KLV ZDUULRUV UDFH
WKURXJKWKHKLOOVLGHWRDVPDOOFOHDULQJZKHUHWKH\ILQGD
IDUPKRXVH DSSDUHQWO\ XQGHU DWWDFN E\ D JLDQW ,Q UHDOLW\
WKH 3&V DJDLQ IDFH )LQ +LV UXVH WKLV WLPH LV GHVLJQHG WR
WHVWWKH3&VFRXUDJHE\IRUFLQJWKHPWRFRQIURQWDJLDQW
LQPHOHH
 $IWHU VXFFHVVIXOO\ VOD\LQJ WKH JLDQW &RQQRFK
LQIRUPVWKH3&VRIRQHILQDODVSHFWRIKHWHVW7KH\PXVW
HQWHURQHRIWKHDQFLHQWEDUURZPRXQGVDQGUHFRYHUWKH
KDXQWWKHSODFHEHIRUHVHQGLQJWKHPRQWKHLUZD\
 $UPHG ZLWK WKH NQRZOHGJH SURYLGHG E\ &RQQRFK
DQGWKHLUWLPHZLWK5LDQHWKH3&VPXVWJDLQHQWU\WRWKH
<HRPDQU\WKHWHVWDFWXDOO\VWDUWVWKHQLJKWWKH\DUULYHLQ EDUURZPRXQGE\ILQGLQJWKHPDJLFDOKROHOHDGLQJWRLWV
6LQJOHWRQ $V WKH DGYHQWXUH EHJLQV WKH 3&V ILQG LQWHULRU2QFHLQVLGHWKH\ILQGDJUDQGEDQTXHWKDOODQG
WKHPVHOYHV LQ D VWHUHRW\SLFDO LQQ 7KH\ VSHQG WKH GD\ ZKDW DSSHDUV WR EH D +LOOPDQ VLWWLQJ DW WKH KHDG WDEOH
LQWURGXFLQJ WKHPVHOYHV WR RQH DQRWKHU DQG WDONLQJ ZLWK 7KLV +LOOPDQ LV LQ IDFW 5HXQ HG
5RQDQ 5LDQH
V
WKHLQQNHHSHU
VIDPLO\DVPRVWHYHU\RQHHOVHLQ6LQJOHWRQ JUDQGIDWKHU ZKR EHFDPH D FXUVHG XQGHDG ZLJKW DIWHU
LV DW KRPH REVHUYLQJ *RGVGD\ ULWXDOV 5\OH\ WKH YLRODWLQJ WKH WUDGLWLRQV RI KLV SHRSOH DQG HQWHULQJ WKH
LQQNHHSHU
V VRQ UHDGLO\ WDONV ZLWK WKH JURXS XQWLO KLV EDUURZPRXQGWRSOXQGHULWVPDJLF7KH3&VPXVWEDWWOH
PRWKHUVHQGVKLPRIIWRZRUNLQWKHVWDEOHVIRUJRVVLSLQJ WKLV XQGHDG KRUURU EHIRUH UHFRYHULQJ WKH ERG\ ZKLFK
6KRUWO\ WKH LQQNHHSHU KLPVHOI DUULYHV DQG SUHVHQWV WKH
SDUW\ZLWKDIHDVWWRSUHSDUHWKHPIRUWKHFRPLQJWULDOV
 $VWKHSDUW\HDWVDJQRPHHQWHUVWKHLQQDQGLQYLWHV
KLPVHOIWRGLQH$VKHJOHHIXOO\HDWVWKHLUIRRGWKHIHOORZ
ZKR FDOOV KLPVHOI )LQ H[SODLQV WKDW KH UHSUHVHQWV WKH
'XVWGLJJHUV&ROOHJHDQGZRXOGOLNHWKH3&VWRSHUIRUPD
VHUYLFHIRUKLPDQGWKH<HRPDQU\ZKLOHYLVLWLQJZLWKWKH
+LOOPHQ +H LQIRUPV WKH 3&V WKDW KH KDV OHDUQHG
VRPHWKLQJ RI WKH WHVWV WR FRPH WKDW WKH\ ZLOO LQYROYH
HQWHULQJ RQH RI WKH DQFLHQW EDUURZPRXQGV WKDW GRW WKH
ODQG RI WKH +LOOPHQ $V WKH FODQV JHQHUDOO\GRQRWDOORZ
HQWU\ LQWR WKHVH VLWHV KH DVNV WKH 3&V WR UHWXUQ VRPH
DUWLIDFWVWRKLPIRUVWXG\
 ,Q DFWXDOLW\ WKH JQRPH LV D SKRXND D IH\
VKDSHFKDQJHU +H LV LQ OHDJXH ZLWK WKH &XPDOK DV WKH
FODQKDVFHQWXULHVROGDJUHHPHQWVWRZRUNZLWKWKHIH\RI
WKHLU ODQG DQG KDV FRPH WR WHVW WKH 3&V
 OR\DOW\ $IWHU SURYLGH KLV RU KHU ERQXV IRU 'HFLSKHU 6FULSW 'LVDEOH
VHFXULQJDQDQVZHUHLWKHUDJUHHLQJRUUHIXVLQJWRKHOS
KHOHDYHVWKH3&VWRWKHLUWKRXJKWVDQGUHVW
 7KH IROORZLQJ PRUQLQJ WKH &XPDOK FODQVPDQ D
DJDLQLV)LQLQGLVJXLVH

:LWK WKH XQGHDG GHIHDWHG DQG WKHLU PLVVLRQ
DFFRPSOLVKHG WKH SDUW\ LV JUHHWHG E\ WKH HQWLUH &XPDOK
FODQRQOHDYLQJWKHPDJLFDOUHDOP&RQQRFKH[SODLQVWKH
WHVWV WKH\ KDYH JRQH WKURXJK KRQRULQJ RU DGPRQLVKLQJ
WKHP DFFRUGLQJ WR WKHLU VXFFHVVHV DQG UHZDUGLQJ WKH
PRVW YDOLDQW ZLWK D VXSHULRU +LOOPDQ VZRUG +H DOVR
LQWURGXFHV WKH IH\ DOOLHV RI WKH &XPDOK DQG 5LDQH
SUHVHQWVWKHSDUW\ZLWKDVSHFLDOJLIWWKHZDUFOXERI5HXQ
IRUUHPRYLQJKLVVKDPHIURPKHUIDPLO\

,1752'8&7,21
7R DLG LQ WKH UHDOLVP IRU/LVWHQFKHFNVKDYHHDFKSOD\HU
'HYLFH 'LVJXLVH )RUJHU\ DQG /LVWHQ VNLOOV 2QO\ WKH
/LVWHQ FKHFN LV GLUHFWO\ XVHG LQ WKH PRGXOH EXW JHWWLQJ
VFRUHV IRU HDFK NHHSV WKH SOD\HUV JXHVVLQJ DQG WKH\
IHPDOH WUDGHU QDPHG 5LDQH WKDW UHJXODUO\ GRHV EXVLQHVV PLJKW FRPH LQ XVHIXO LI WKH 3&V JHW LQYHQWLYH $OVR DVN
ZLWK6LQJOHWRQDUULYHVIRUWKH3&V$IWHUFRPSOHWLQJKHU WKHSOD\HUVWRGHVFULEHDQ\QRWHZRUWK\FHUWVLQSULYDWHLI
EXVLQHVVZLWKWKHORFDOEODFNVPLWKVKHZHOFRPHVWKH3&V QHFHVVDU\7KH'0VKRXOGVSHFLILFDOO\ORRNIRUVWDQGLQJ
WRMRLQKHURQWKHUHWXUQWULSWR&ODQKROG&XPDOK DELOLWLHV RU VSHOOV WKDW GHWHFW LQYLVLEOH RU VKDSHFKDQJHG
 'XULQJ WKH MRXUQH\ WKH 3&V ILQG WKH WUDGHU WR EH FUHDWXUHV DV WKLV ZLOO GLUHFWO\ LPSDFW VHYHUDO HQFRXQWHUV
TXLWH HDJHU WR HVWDEOLVK EHWWHU UHODWLRQV ZLWK WKH 'R QRW VSHFLILFDOO\ DVN LI WKH 3&V FDQ GR VR )LQDOO\
<HRPDQU\ 6KH GHVFULEHV YDULRXV DVSHFWV RI +LOOPHQ ZKHQWKHSOD\HUVDUHUHDG\WREHJLQKDQGHDFKDFRS\RI
FXOWXUHWKDWPLJKWSURYHXVHIXOLQWKHFRPLQJWHVWV$IWHU 3OD\HU +DQGRXW  DOORZ WKHP WLPH WR UHDG WKURXJK LW
DPLQRUDFFLGHQWSUHFLSLWDWHGE\VHYHUDOSL[LHVPRUHIH\ DQGWKHQUHDGWKHIROORZLQJ
DOOLHVRIWKH&XPDOKWRVSLFHXSDQRWKHUZLVHERULQJWULS
WKHSDUW\DUULYHVDWWKHKLOOIRUWRI&XPDOK
 7KH 3&V PXVW XWLOL]H WKH NQRZOHGJH JDLQHG IURP
FRQYHUVDWLRQ ZLWK 5LDQH WR SURSHUO\FRQGXFWWKHPVHOYHV
LQIURQWRI&RQQRFKFKLHIWDLQRIWKH&XPDOK7KHVRFLDO
JDWKHULQJ KRZHYHU LV FXW VKRUW ZKHQ D UXQQHU EULQJV
QHZV WR WKH FKLHIWDLQ :LWK DQ DLU RI P\VWHU\ DQG
+ROHLQWKH:DOO

<RXKDYHMRXUQH\HGWRWKHYLOODJHRI6LQJOHWRQDWWKHUHTXHVWRI
0DULXV/LQGRQKLPVHOI:KLOHWKH)UHHKROGHUGLGQRWSHUVRQDOO\
DGGUHVV\RXKHGLGVHQGDUXQQHUEHDULQJWKLVOHWWHUVHDOHGZLWK
KLVSHUVRQDOPDUN<RXDUULYHGLQ6LQJOHWRQZLWKOLWWOHWLPHWR
VSDUH1RZUHVWLQJDIWHU\RXUORQJWULSDWWKH)UHHPDQV6SHDU
\RXKDYHVSHQWWKHGD\DFTXDLQWLQJ\RXUVHOIZLWKWKHRWKHUVKHUH
 3DJH
WKRVHZKRKDYHDOVREHHQFKRVHQIRUWKLVWHVWDQGWDONLQJZLWK 
WKHIDPLO\WKDWRZQVWKHLQQ %UHDKDYLQJEHHQWROGRIWKHFRQYHUVDWLRQE\2RQDVHQGV
 5\OH\RIIWRFOHDQWKHVWDEOHV|.HHZHH}LVDORFDOWHUPIRU
$OORZWKHSDUW\WKLVWLPHWRLQWURGXFHWKHPVHOYHVWRRQH WKH .HRLVK 0HYDQ -RUGDQQD WKH ORFDO DUPRUVPLWK
DQRWKHU 7KH\ PD\ FKRRVH WR VKDUH ZKDWHYHU NQRZOHGJH DOOHJHGO\ VWDUWHG LW E\ FDOOLQJ WKH .HRLVK |ZHH OLWWOH
WKH\ KDYH RI WKH VLWXDWLRQ DQG ZK\ WKH\ FKRVH WR DFFHSW .HRODQGHUV}
WKH)UHHKROGHUVUHTXHVW1DWXUDOO\WKLVPLVVLRQFRXQWVDV  7KH 3&V PD\ WDON ZLWK WKH VWDII WKH LQQNHHSHUV
0LOLWLDVHUYLFHDQGDQ\0LOLWLDRU$UP\SOD\HUVKDYHEHHQ IDPLO\ ZKLFKLVYDJXHO\IDPLOLDUZLWKWKH&XPDOKIURP
RIILFLDOO\ DFWLYDWHG IRU WKLV GXW\ 5\OH\ WKH LQQNHHSHUV SHULRGLFWUDGLQJZLWKWKHFODQ7KH\FRQVLGHUWKH+LOOPHQ
VRQ DOVR SURYLGHV D EULHI GHVFULSWLRQ RI 6LQJOHWRQ ZKHQ VRPHZKDW EDFNZDUGV EHLQJ LOOLWHUDWH DQG LQFDSDEOH RI
DSSURSULDWH EXLOGLQJUHDOFLWLHV7KH\NQRZWKH+LOOPHQDUHIHURFLRXV
 ZDUULRUVDQGKXQWHUVXVXDOO\WUDGLQJLQOHDWKHUJRRGVDQG
5\OH\ )UHHPDQ WKH LQQNHHSHUV ODQN\ WHHQDJH VRQ DSSURDFKHV DQLPDO KLGHV 7KH\ DOVR WKLQN WKH &XPDOK SDUWLFLSDWH LQ
\RXUWDEOH<RXPHWKLPHDUOLHUXSRQDUULYLQJDWWKHLQQDORQJ ZHLUG UHOLJLRXV SUDFWLFHV IROORZLQJ EHDVWV DQG WUHHV DV
ZLWK%UHDKLVPRWKHUDQG2RQDKLV\RXQJHUVLVWHU JRGV UDWKHU WKDQ SD\LQJ UHVSHFWV WR SURSHU JRGV OLNH WKH
 |3RSOO EH KHUH ~URXQG VXSSHU WLPH{KHV SXOOLQ D ZHHN R &KXUFK RI WKH 6HYHQ )DLWKV 7KH '0 FDQ XVH WKLV
VHUYLFHZLWKWKHPLOLWLD)LJXUG,~GWHOO\DOODELWDERXWWKHWRZQ RSSRUWXQLW\ WR VHW VRPH SUHMXGLFHV XS DJDLQVW WKH
LIQ\HULQWHUVWHG"} +LOOPHQDQGWKHLUFXOWXUH
  7KHLQQNHHSHULVFXUUHQWO\GXHEDFNIURPKLVVHUYLFH
$VVXPLQJWKH3&VDQVZHUDIILUPDWLYHO\5\OH\FRQWLQXHV LQ WKH PLOLWLD )HZ RWKHU SHRSOH DUH RXW WRGD\ DV WKH
 YLOODJH XVHV *RGVGD\ WR KRQRU WKHLU JRGV WKURXJK
|:HOO ZHUH D SHUW\ ELJ FLW\ IHU WKHVH KHUH SDUWV 3RS VDLG WKH\ LQIRUPDOIDPLO\ZRUVKLS
ZDV RYHU  DW WKH ODV FRXQW 6LQJHOWRQV WKD VWRXWHVW ERUGHU 
WRZQLQWKH<HRPDQU\ZD\XSKHUHQH[WWRWKH-RWHQV:HDLQW :KHQ WKH 3&V H[KDXVW FRQYHUVDWLRQ ZLWK WKH VWDII
JRW QR PD\RU RU *URVVSRNHVPDQ DQ ZH GRQW UHDOO\ QHHG RQH FRQWLQXHWR(QFRXQWHU2QH
VLQFH3RSVFRPPDQGHUVDQWKD/HDJXHRIILFHUVVLWRQDFRXQFLOWD 
JRYHUQ XV 7KD 6SHDUV XVHOO\ IXOO R VROGLHUV KDUGZRUNLQ &UHDWXUHV %UHD DJH  WKH LQQNHHSHUV ZLIH LV D TXLHW
IDUPHUVDQGDGYHQWXUHUVORRNLQWRJRXSLQWKHPRXQWDLQVEXW SROLWHODG\VPDOORIIUDPHHVSHFLDOO\ZKHQVWDQGLQJQH[W
WRGD\V *RGVGD\ VR PRVW HYHUERGLHV DW KRPH SD\LQ UHVSHFWV WRKHUKXVEDQG6KHWDONVZLWKDVOLJKW|FRXQWU\}DFFHQW
7KHUHV VRPH RWKHU LQQV DERXW EXW WKH\UH DOO WKURZQWRJHWKHU 
VKDFNV FRPSDUHGWRWKH6SHDUOHWWLQLQDQ\ROHULIIUDII0HYDQ %UHD%5 )UHHPDQ)HPDOHKXPDQ&RP
-RUGDQQD OLYHV RQ WKH QRUWK HGJH R WRZQ \RX FDQ IDOOHU WKD 
VPRNH WR KLV SODFH 3RS VD\VKHPDNHVWKHEHVWGDQJDUPRUVLQ 7KH )UHHPDQV VRQ 5\OH\ DJH  LV D JDQJO\ WDONDWLYH
WKH <HRPDQU\ DQ , KHDUG KH NLOW D RJUH ZLWK KLV EDUH KDQGV WHHQDJHUZLWKDSURQRXQFHG|FRXQWU\}DFFHQW%UHDRIWHQ
ZKHQKHDVMXVROGHUQPH} FKDVWLVHV 5\OH\ LI VKH EHOLHYHV KH LV EHLQJ LPSURSHU LH
 WDONLQJDERXWWRZQJRVVLS
5\OH\ VKRRWV D TXLFN GHULVLYH JODQFH DW DQ\ KDOIRUFV LQ 
WKHSDUW\EHIRUHFRQWLQXLQJ
5\OH\5 O )UHHPDQ0DOHKXPDQ&RP


|3RSQ WKH RWKHU VROGLHUV SXUWHFW WKLV ZKROH DUHD IURP WKHP
7KH \RXQJHVW FKLOG 2RQD DJH  LV YHU\ VK\ EXW
ORRWLQJLDQWVRUFVQJREOLQV$QGw}
SDUWLFXODUO\OLNHVJQRPHVDQGKDOIOLQJVZKRDUHPRUHKHU
 +H ORRNV WR WKH NLWFKHQ EHIRUH ZKLVSHULQJ |7UXWK EH WROG
VL]H 6KH VRXQGV UHPDUNDEO\ OLNH KHU PRWKHU WKRXJK
3RS DQG VRPH R KLV FRPPDQGHUV WDON RI VKLHOGQ WKD /HDJXH
UDUHO\VSHDNLQJDERYHDZKLVSHU
IURP.HHZHHH[SDQVLRQ,KHDUGLWZDV~HP.HHZHH
VZKDWZDV

GRLQDOO~DWVWXIIXSQRUWKJRLQXSLQWKDKLOOVDQGVWLUULQXS
WKHJLDQWV)LUVWWKH\WRRN&U\OORUIURPXVQRZWKH\UHJRLQDQ 2RQDQ)UHHPDQ)HPDOHKXPDQ&RP
VWLUULQ
 XS RXU HQHPLHV /RRN ZKDW KDSSHQHG WR *HRII DQG
6WHULFKSURE
O\VWDUWHGXS~HUH7KHQORRNDWWKH.HHZHH
VFRPLQ


LQDQGSOD\LQ
|VDYHWKDGD\})XQQ\WKH\ZDVQ
WWKHUHZKHQWKH
JLDQWV ILUVW VKRZHG XSQ VPDVKHG HYHUWKLQJ 1RZ WKH\
UH DOO
(1&2817(5
KLJK DQG PLJKW\ UHDG\ WR VWHS LQ DQG KHOS RXW{EHW WKH\UH $V WKH VXQ EHJLQV WR VHW D ODUJH EDUUHOFKHVWHG PDQ HQWHUV WKH
WKHUH DIWHUZDUGVWRRPDNLQWKHJRYPHQWPRUHWRWKHLUOLNLQ
 FRPPRQ URRP IURP WKH NLWFKHQ 7KLV PXVW EH ,DQ WKH
.HHSDOO~HP.HHZHH
VRXW,VD\,DOVRKHDUG7KHRGDLQ(ULDVRQ LQQNHHSHU+HDSSURDFKHV\RXUWDEOH
KLPVHOIZDVLQWRZQIHUVRPHWKLQ,EHWw}  |:HOFRPHJXHVWVWKH/HDJXHVSURYLGLQIHUDQ\UHDVRQDEOH
 UHTXHVWV \D PLJKW PDNH R PH , FDQ EULQJ \D WKH ILQHVW IRRGV
%UHD ZLWK D VXUSULVLQJO\ ORXG YRLFH IRU VXFK D VPDOOIUDPHG DYDLODEOH KHUHDERXWV %UHDV IUHVK EDNHG EUHDGV URDVW SDUVQLS
ZRPDQ VXGGHQO\ VKRXWV IURP WKH NLWFKHQ |5</(< JLW LQ WKH ZKDWHYHU PHDW \H ZDQW , HYHQ KDYH WZR URXQGV R <HRPDQ
NLWFKHQ 12: , WROG \RXQRWWDJRJRVVLSLQDJLQVSHVKO\QRW :LFNOHUILQHVWFKHHVHLQWKHODQGDQGDERWWOHR)DUYDOH*ROGLI
ZLWK RXU JXHVWV} <RX VHH 2RQD 5\OH\V \RXQJHUVLVWHUSHHNLQJ \RXOLNH}
IURPEHKLQGWKHEDUDV5\OH\VKRXOGHUVVOXPSHGWUXGJHVWRWKH 
NLWFKHQ

+ROHLQWKH:DOO  3DJH
7KH <HRPDQU\ KDV SDLG ,DQ ZHOO WR PDNH WKH 3&V 
FRPIRUWDEOH DQG KH ZLOO SURYLGH IRU DQ\ UHDVRQDEOH
UHTXHVW WKH 3&V PLJKW PDNH ,DQ WHOOV WKH 3&V WR YLVLW
0HYDQ LI WKH\ DUH LQ QHHG RI ZHDSRQV RU DUPRU DV ,DQ
EHOLHYHVWKHPDQWREHWKHEHVWVPLWKWKDWHYHUOLYHG+LV
FRQYHUVDWLRQ ZLOO JHQHUDOO\ UHYROYH DURXQG UHFHQW
DGYHQWXUHUV VWRULHV +H LV PRVW SURXG RI KHOSLQJ D
FRQWLQJHQW IURP )RUW $XJXVW LQ GULYLQJ EDFN D KLOO JLDQW
WKDWKDGEHHQWHUURUL]LQJWKHURDGZD\V+HKDVDOVRKHDUG
)LQ ILQ WKH *QRPH 3KRXND S. KS  VHH
$SSHQGL[$0RGLILHGVWDWV6WU'H[&RQ

7UHDVXUH 7KH LQQ FRQWDLQV OLWWOH RI YDOXH WR WKH 3&V ,DQ
ZLOO VHOO WKHP FRPPRQ IRRGVWXIIV EODQNHWVDQGWKHOLNH
EXW KDV QR ZHDSRQV RU DUPRU VDYH KLV RZQ PLOLWLD
HTXLSPHQW ,IWKH\VKRXOGFKRVHWRNHHSLWWKH3&VPD\
WDNHZKHHOVRI<HRPDQ:LFNOHURQHZLWKQXWVDQGRQH
YDULRXVUXPRUVDERXW7KHRGDLQFRPLQJWRWRZQDOWKRXJK
,DQ QHYHU SHUVRQDOO\ VDZ KLP +H LV FXUUHQWO\ LQ WKH
PLGGOH RI D PLOLWLD VHUYLFH SHULRG KDYLQJ UHWXUQHG IRU
*RGVGD\ ZRUVKLS DQG WR JUHHW WKHVH KRQRUHG JXHVWV ,DQ
KDV WKH VDPH JHQHUDO NQRZOHGJH DV KLV IDPLO\ UHJDUGLQJ
WKH &XPDOK $IWHU VHUYLQJ GLQQHU ,DQ WHOOV WKH 3&V WR
KHOSWKHPVHOYHVWRPRUHIRRGDQGGULQNIURPWKHNLWFKHQ
ZLWKRXW ZRUWK  VS HDFK DQG D ERWWOH RI )DUYDOH *ROG
ZRUWK JS<HRPDQ:LFNOHULVDQLYRU\FRORUHGFKHHVH
ZLWK JUHHQLVK PDUEOLQJ IURP WKH <HRPDQ YLOODJH RI
:LFNOHU)DUYDOH*ROGLVOLTXRUPDGHZLWKFRUQDQGDSSOH
MXLFH)LQFDUULHVQRWKLQJZLWKKLPH[FHSWWKHFORWKHVRQ
KLVEDFN

ZKLOHKLVIDPLO\JRHVWRZRUVKLS+HWKHQH[LWVDQG 7DFWLFV)LQLVO\LQJWRWKH3&V%OXII'LVJXLVH{
PLQXWHVSDVVEHIRUHDQRWKHUSDWURQHQWHUVWKHLQQ KH LV QRW D UHSUHVHQWDWLYH RI WKH 'XVWGLJJHU &ROOHJH RU
 HYHQDJQRPHEXWUDWKHUDSKRXND{DIH\VKDSHFKDQJHU
$V \RX DUH HQMR\LQJ \RXU HYHQLQJ PHDO D JQRPH HQWHUV WKH 8QEHNQRZQVW WR WKH 3&V WKH +LOOPDQ WHVW KDV DOUHDG\
WDYHUQ DQG KHDGV VWUDLJKW WRZDUG \RXU WDEOH KH LV REYLRXVO\ EHJXQ)LQLVDFWXDOO\LQOHDJXHZLWKWKH+LOOPHQDQGWULHV
ORRNLQJ IRU \RX +H LV GUHVVHG LQ EULJKW JDXG\ FORWKHV EXW LV KLVXWPRVWWRJHWWKH3&VWRFRPPLWWRDFRXUVHRIDFWLRQ
FRYHUHGLQGXVWDVLIIURPDORQJWULS ZKHWKHU LW EH UHIXVLQJ RU SOHGJLQJ WR KHOS YDJXH
 |*RRGHYHQLQJNLQGIRONPLJKW,MRLQ\RXIRUDELW"} DQVZHUV ZLOO QRW GR 7KLV FRPPLWPHQW ZLOO ODWHU EH
 :LWKRXWZDLWLQJIRUDUHVSRQVHWKHJQRPHVHDWVKLPVHOIDW VFUXWLQL]HG WR GHWHUPLQH WKH 3&V KRQRU $IWHU WDONLQJ
\RXUWDEOH ZLWK WKH 3&V DQG KHOSLQJ KLPVHOI WR WKHLU IRRG )LQ
 |0\QDPHV)LQDQG,KDYHDELWRIDSURSRVLWLRQIRU\RX, OHDYHV WKH LQQ ,I WKH 3&V UHIXVH WR FRPPLW WR HLWKHU
UHSUHVHQW WKH 'XVWGLJJHUV *XLOG LQ /RIWZLFN <RXUH IDPLOLDU FRXUVH RI DFWLRQ SUREDEO\ WKH EHVW GHFLVLRQFRQVLGHULQJ
ZLWKXV"<HV\HVRIFRXUVH\RXDUH:HOODIWHUFDWFKLQJZLQGRI WKH 3&V GR QRW NQRZ H[DFWO\ ZKDW WKH\ DUH FRPPLWWLQJ
/LQGRQVSODQVWRHVWDEOLVKUHODWLRQVZLWKWKH&XPDOKZHZHUH
PRVWH[FLWHG<RXVHHWKHODQGVRIWKH&XPDOKKROGVRPHRIWKH
ILQHVW EDUURZPRXQGV LQ WKH /HDJXH DEVROXWHO\ EHJJLQJ WR EH
VWXGLHG 8QIRUWXQDWHO\ WKH FODQ LV JHQHUDOO\ ORDWK WR DOORZ
DQ\RQHQHDULWVWHUULWRU\:HOO,YHEHHQDEOHWRGHWHUPLQHZLWK
VRPHFHUWDLQW\WKDW\RXUWHVWVZLOOLQYROYHRQHRIWKHVHPDUYHORXV
DUFKDHRORJLFDOVLWHVLQVRPHZD\0\UHTXHVWWR\RXLVWKLVLI\RX
WR)LQVWRPSVRXWLQDKXIIPXPEOLQJDERXWXQUHOLDEOH
DGYHQWXUHUV WKDW GR QRW GHVHUYH WR UHSUHVHQW WKH
<HRPDQU\ ,Q HLWKHU FDVH ,DQ UHWXUQV ODWHU WR VKRZ WKH
3&VWRWKHLUURRPVSURPLVLQJWRZDNHWKHPEHIRUHGDZQ
WRPHHWWKH+LOOPDQHPLVVDU\
 )LQ KDV ZDWFKHG WKH 3&V IRU VRPH WLPH IURP D
GLVWDQFHHLWKHUZKLOHLQYLVLEOHRUVKDSHFKDQJHGLQWRWKH
VKRXOG SHUKDSV EH DOORZHG WR HQWHU RQH RI WKHVH PRXQGV WKH IRUP RI D ELUG DV DSSURSULDWH DQG VR KDV KHDUG DQ\
*XLOGZRXOGEHPRVWDSSUHFLDWLYHRIDQ\DUWLIDFWVWKDW\RXPLJKW FRQYHUVDWLRQV WKH\ PLJKW KDYH KDG +H UHOD\V DQ\
EHDEOHWRUHWXUQWRXVIRUVWXG\<RXUDFWLRQVZLOORIFRXUVHEH GLVFXVVLRQ RI WKH +LOOPHQ JRRG RU EDG EDFN WR WKH
HQWLUHO\ VDQFWLRQHG E\ WKH 'XVWGLJJHUV DQG E\ WKH <HRPDQU\ &XPDOK +H WLPHV KLV HQWU\ WR PDNH VXUH WKDW WKH
$QG RI FRXUVH ZH ZLOO JODGO\ FRPSHQVDWH \RX IRU WKH YDOXH RI )UHHPDQ IDPLO\ LV DZD\ ,I WKH 3&V TXHVWLRQ WKH
ZKDWHYHU\RXPD\ILQG6RZKDWVD\\RX"&DQWKH'XVWGLJJHUV )UHHPDQVWKH\GRUHFDOODJQRPHIURP/RIWZLFNEHLQJLQ
DQGWKH<HRPDQU\FRXQWRQ\RXLQWKLVLQVWDQFH"} WRZQ VWD\LQJ DW DQRWKHU LQQ )LQ KDV EHHQ HVWDEOLVKLQJ
 KLPVHOIIRUWKHSDVWIHZGD\VLQWKHFRPPXQLW\WRIXUWKHU
&UHDWXUHV ,DQ )UHHPDQ DJH  RZQV WKH LQQ +H LV D KLVUXVH
ZHOOEXLOW EURDGVKRXOGHUHG PDQ EHLQJ DQ DFWLYH 
PHPEHURIWKHORFDOPLOLWLDIRU\HDUVDQGORYHVWRWHOO 'HYHORSPHQW3&VWKDWDFFHSW)LQVRIIHUDUHKRQRUERXQG
VWRULHV RI KLV IRUD\V LQWR WKH -RWHQV +H UHYHUHV .RUG WRWU\WRUHFRYHUVRPHDUWLIDFWVLIJLYHQWKHFKDQFHZKLOH
DOWKRXJK 7ULWKHUHRQ LV EHJLQQLQJ WR LQWHUHVW KLP +H WKRVH WKDW UHIXVH DUH ERXQG WR WDNH QRWKLQJ IURP WKH
VSHDNVLQDVORZGHHSYRLFH EDUURZPRXQG 7KLV GHFLVLRQ ZLOO FRPHLQWRSOD\GXULQJ
 WKHFRQFOXVLRQ
,DQ  Q )UHHPDQ 0DOH KXPDQ&RP:DUOHDWKHU  7KHUH DUH VHYHUDO SRUWLRQV RI )LQV GLVJXLVH WKDW 3&V
DUPRUVKRUWVSHDU PLJKW TXHVWLRQ $OWKRXJK WKH\ PD\ QRW UHDOL]H LW XQWLO
 ODWWHU KH XVHV DOPRVW WKH H[DFW VDPH JUHHWLQJ DV WKH
)LQ LV D SKRXND D IH\ ZLWK WKH |QDWXUDO} IRUP RI D VLOYHU +LOOPHQ ,Q DGGLWLRQ KH UHIHUV WR WKH 'XVWGLJJHUV DV D
IR[ +H PD\ XVH KLV VKDSHFKDQJH VSHOOOLNH DELOLW\ |*XLOG}LQVWHDGRID&ROOHJH)LQDOO\KHLVQRWZHDULQJWKH
KRZHYHU WR DVVXPH WKH IRUP RI DQ\ REMHFW IURP 7LQ\ WR SODWLQXP SLQ JLYHQ WR DOO 'XVWGLJJHUV WR VLJQLI\
/DUJHVL]HDQGLVFXUUHQWO\LQWKHVKDSHRIDURFNJQRPH PHPEHUVKLS ,I DQ\ 3& DVNV WR VHH WKH SLQ )LQ ZLOO
+H VSHDNV ZLWK QR GLVFHUQDEOH DFFHQW FKDQJLQJ LW DV H[SODLQ WKDW KLV ZDV UHFHQWO\ VWROHQ DQG KH ZLOO EH
DSSURSULDWHWRIXUWKHUKLVGLVJXLVH WUDYHOLQJEDFNWR/RIWZLFNDIWHUWKLVDVVLJQPHQWWRDFTXLUH

+ROHLQWKH:DOO  3DJH
D QHZ RQH +H LV VLPLODUO\ HYDVLYH LI DVNHG WR SURGXFH ,W LV IXOO\ DQ KRXU EHIRUH GDZQ 7KH )UHHPDQ IDPLO\ LV
SDSHUV FHUWLI\LQJ WKH 3&V ULJKW WR H[SORUH WKH +LOOPHQ DOUHDG\ EXVLO\ SUHSDULQJ EUHDNIDVW DQG SHUIRUPLQJ WKH
ODQGV PRUQLQJFKRUHV3&VPD\DJDLQWU\WRVWDUWFRQYHUVDWLRQ
 ,I WKH 3&V VRPHKRZ GLVFRYHU )LQV UXVH HLWKHU E\ EXW,DQVRRQKXUULHVWKHPRIIWRWKHWRZQVTXDUH
VHHLQJ WKURXJK KLV GLVJXLVH RU FDOOLQJ KLV EOXII DQG
EHFRPH KRVWLOH WKH SKRXND LPPHGLDWHO\ WXUQV LQYLVLEOH
DQGIOHHVDOOWKHZKLOH|VSHDNLQJPDJLF}LQV\OYDQWRJLYH
WKHLPSUHVVLRQWKDWKHLVDZL]DUG,IWKH3&VWU\WRSXUVXH
KLP )LQ ZLOO WUDQVIRUP LQWR D ELUG DQG IO\ RXW RI UDQJH
+H ZLOO QRW KRZHYHU OHDYH WKH DUHD EXW UDWKHU UHWXUQV
ZKHQ WKH 3&V VHWWOH GRZQ WR FRQWLQXH ZDWFKLQJ WKHP
8QOHVVWKH3&VVSHFLILFDOO\ORRNIRUQRUPDODQLPDOVWKH\
ZLOOQRWJHWD6SRWFKHFNWRVHHKLP,IWKH3&VGHWHFW)LQ
DV DQ LQYLVLEOH FUHDWXUH KH ZLOO XVH DQ DQLPDO IRUP
LQVWHDG RI LQYLVLELOLW\ WR FRQWLQXH VS\LQJ RQ WKHP DJDLQ
ZLWK PLQLPDO FKDQFH IRU GLVFRYHU\ XQOHVV WKH 3&V
VSHFLILFDOO\ ORRN IRU QRUPDO DQLPDOV 7UXH VHHLQJ VSHOOV RU
RWKHUPHDQVRIVHHLQJ)LQVWUXHIRUPZLOOUHYHDODVPDOO
VLOYHUIR[
 7R WHVW WKH 3&V DELOLW\ WR GHWHFW LQYLVLEOH RU

<RXDUHVXUSULVHGWRVHHVRPDQ\SHRSOHLQWKHWRZQVTXDUHWKLV
HDUO\SUREDEO\DGR]HQPHQ3HUKDSVWKH\KDYHFRPHWRJLYH\RX
DKHURVVHQGRII<RXUVSHFXODWLRQKRZHYHULVDEUXSWO\FXWVKRUW
E\WKHVRXQGRIZRRGHQZKHHOVFUXQFKLQJRYHUWKHJUDYHOVWUHZQ
URDG$VLQJOHZDJRQLVFRPLQJLQWRWRZQIURPWKHZHVWSXOOHG
E\ WZR SRZHUIXOO\ EXLOW KRUVHV $ ORQH GULYHU JXLGHV WKH SDLU
DORQJWKHSDWKGHVSLWHWKHZHDNOLJKWWKDWLVMXVWQRZEHJLQQLQJ
WRVKLQHRYHUWKHHDVWHUQKRUL]RQ7KLVPXVWEHWKH+LOOPDQDQG
ULJKW RQ WLPH $V WKH ZDJRQ FRPHV WR D KDOW KRZHYHU \RX VHH
WKDW LW LV PRUH DSSURSULDWH WR VD\ |+LOOZRPDQ} IRU D ODG\ LV
GULYLQJ WKH ZDJRQ 6HYHUDO RI WKH YLOODJHUV LQFOXGLQJ RQH
PDPPRWKRIDPDQZDONXSWRPHHWWKHWUDYHOHU$IWHUDEULHI
FRQYHUVDWLRQ WKH PHQ EHJLQ WR XQORDG WKH ZDJRQ VWDFNLQJ XS
ZKDW DSSHDU WR EH KLGHV DQG IXUV 7KH\ DOVR SXOO RII VHYHUDO
ZRRGHQ FUDWHV DSSDUHQWO\ YHU\ KHDY\ DQG WKHQ EHJLQ WR ORDG
VKDSHFKDQJHG FUHDWXUHV DV ZLWK D WUXH VHHLQJ VSHOO )LQ DQRWKHUVHWRIFUDWHVRQWRWKHZDJRQ7KHZRPDQZDWFKHVDOOWKH
FDUHIXOO\ZDONVDFURVVWKHURRPLQSODLQYLHZDVDJQRPH ZKLOH VSHDNLQJ RFFDVLRQDOO\ ZLWK WKH ODUJH PDQ LW VHHPV WKH
ZKLOHLQYLVLEOHWRVHHLIDQ\3&UHDFWVWRKLVSUHVHQFHWKH WZRNQRZRQHDQRWKHUIDLUO\ZHOO
'0 VKRXOG VHFUHWO\ UROO D 0RYH 6LOHQWO\ FKHFN DW  IRU 
)LQ RSSRVHG E\ HDFK 3&V /LVWHQ VNLOO ,I DQ\ 3& KHDUV 7KH ODG\ LV 5LDQH D +LOOPDQ WUDGHU IURP &ODQKROG
KLP )LQ VLPSO\ VWRSV ZDONLQJ ,I D 3& FDQ VHH )LQ DV &XPDOK 6KH KDV GDUN EURQ]H VNLQ DQG ZDY\ EODFN KDLU
GHWHUPLQHGEHIRUHVWDUWLQJWKHPRGXOHE\FKHFNLQJHDFK SXOOHGEDFNLQVHYHUDOEUDLGV6KHLVZHDULQJDJUHHQWXQLF
3&VDELOLWLHV{LQIRUPKLPSULYDWHO\WKDWKHHLWKHUVHHVD DQG D EXFNVNLQ VNLUW VOLW XS WKH VLGH VR VKH FDQ PRYH
JQRPHLIDEOHWRVHHLQYLVLEOHFUHDWXUHVRUDVLOYHUIR[LI HDVLO\ 5LDQH WUDGHV UHJXODUO\ ZLWK 6LQJOHWRQ EULQJLQJ
DEOH WR VHH LQYLVLEOH FUHDWXUHV DQG GLVFHUQ WUXH IRUP ,I IXUV OHDWKHU JRRGV DQG RWKHU +LOOPDQ ZDUHV IRU WUDGH
VHHQDVDJQRPHKHVLPSO\H[SODLQVWKDWKHVORRNLQJIRU XVXDOO\ IRU FRWWRQ RU LURQ 7KH ODUJH PDQ 0HYDQ
WKH SDUW\ EXW IHDUHG DWWDFN IURP VRPH UXIILDQV KH PHW -RUGDQQD KDV WUDGHG KHU D ORDG RI LURQ LQ H[FKDQJH IRU
SUHYLRXVO\ +H WKHQ LPPHGLDWHO\ ODXQFKHV LQWR KLV KLGHV DQG IXUV ZKLFK KH DFTXLUHG IRU WKH ORFDO WDQQHU
GLDORJXH,IVHHQDVDIR[KHUDFHVWRWKHNLWFKHQDQGIOHHV DQG YDULRXV +LOOPDQ VZRUGV ZKLFK KH VHOOV LQ KLV
WKHGLDORJXHZLOOQRWRFFXUDQGWKLVSRUWLRQRIWKHWHVWLV VPLWK\ 7KHLU FRQYHUVDWLRQ LI DQ\RQH WULHV WR /LVWHQ LQ
LQYDOLGDWHG ,Q HLWKHU FDVH )LQ DWWHPSWV WR VWHDO WKH '&   SHU HYHU\  IHHW IURP WKH SDLU UHYROYHV
RIIHQGLQJ LWHPV LI SRVVLEOH GXULQJ WKH QLJKW 0RYH DURXQG ORFDO HFRQRPLHV ZHDWKHU DQG RWKHU JHQHUDO
6LOHQWO\  RSSRVHG E\ WKH 3&V /LVWHQ VNLOO WKHQ 3LFN LQIRUPDWLRQ ZLWK PHQWLRQ PDGH RI WKH 3&V EHLQJ WKH
3RFNHW  LI WKH LWHP LV FDUULHG E\ WKH SHUVRQ ZKLOH GHOHJDWHVIRUWKH<HRPDQU\7KH3&VPD\DSSURDFKDWDQ\
VOHHSLQJ ERWK ZLWK D  FLUFXPVWDQFH ERQXV IRU )LQ LI WLPH ,I QRW 0HYDQ HYHQWXDOO\ OHDGVWKHODG\RYHUWRWKH
WKH3&LVDVOHHS
 ,I IRU VRPH UHDVRQ WKH 3&V HQJDJH LQ FRPEDW
HYHU\WKLQJLQWKHLQQLVZRRGHQ,DQZLOODWWHPSWWRVWRS
DQ\ILJKWLQJDQG5\OH\ZLOOTXLFNO\UHWXUQZLWKDPLOLWLD
FRUSV WR VWRS WKH 3&V FODULI\ WKDW DWWDFNLQJ WKH WRZQ
JXDUG ZLWK GHDGO\ IRUFH LV FRQVLGHUHG DQ HYLO DFW
3&V

|:HOOPHW NLQG IRON , DP 5LDQH DQ2VLDQ DQ5RQDQ{RU DV
\RX ZRXOG VD\ LQ &RPPRQ 5LDQH GDXJKWHU RI 2VLDQ
GHVFHQGDQW RI 5RQDQ 0HYDQ WHOOV PH WKDW \RX DUH WKH
UHSUHVHQWDWLYHVVHQWE\WKH<HRPDQU\/HDJXH0\FKLHIWDLQELGV
SXQLVKDEOHE\ERWKFLW\DQGQDWLRQDOODZ PHEULQJ\RXEDFNWRWKHODQGVRIWKH&XPDOKWRPHHWZLWKRXU
 FODQ , DVVXPH IURP \RXU SUHVHQFH KHUH WKDW \RX DUH UHDG\ WR
:RRGHQ 'RRUV DQG 7DEOHV  LQ WKLFN KDUGQHVV  KS JR"}
$&%UHDN'& 
,IWKH3&VDQVZHUDIILUPDWLYHO\5LDQHLQIRUPVWKHPWKDW
 WKH\ VKDOO OHDYH DV VRRQ DV WKH ZDJRQ LV ORDGHG DQG WKHQ
EXVLHV KHUVHOI FKHFNLQJ WKH QHZ FDUJR ,I WKH 3&V KDYH
(1&2817(5 DQ\RWKHUSUHSDUDWLRQVWRPDNHWKH\DUHLQVWUXFWHGWRGR
VR TXLFNO\ 0HYDQ FDQ VHOO WKHP DUPRU LI WKH 3&V DVN
<RX VOHHS ZHOO DIWHU WKH ORQJ GD\ UHVWLQJ FRPIRUWDEO\ LQ \RXU +RZHYHU ZLWKRXW WLPH IRU SURSHU ILWWLQJ RQO\ FKDLQ
RZQURRP<RXEDUHO\IHHOOLNHPRYLQJZKHQWKHUHLVDNQRFNDW VKLUWVFKDLQPDLODQGPHWDOVKLHOGVDUHDYDLODEOH7KHUHLV
\RXUGRRUDQG,DQVYRLFHFDOOVIURPWKHKDOOZD\WKDWEUHDNIDVW QR WLPH IRU LQWHUDFWLQJ ZLWK DQ\RQH HOVH DOWKRXJK WKH
ZLOOEHUHDG\VRRQ7KHQ\RXUHPHPEHU|ZLWKWKHVXQ}w )UHHPDQVZLOOZLVKWKH3&VOXFNDVWKH\GHSDUW
 

+ROHLQWKH:DOO  3DJH
5RXJKO\DQKRXUDIWHUGDZQWKHZDJRQQRZORDGHGGRZQZLWK |RXWVLGHUV} WKDQ WKH UHVW RI KHU FODQ 5LDQH LV HDJHU WR
ILYHKHDY\FUDWHVOXUFKHVWRDVWDUW$VWKHZDJRQUROOVDZD\WKH EXLOG D VWURQJHU UHODWLRQVKLS EHWZHHQ KHU FODQ DQG WKH
)UHHPDQV DQG 0HYDQ -RUGDQQD ZDYH IURP WKH WRZQ VTXDUH /HDJXH 6KH NQRZV KRZHYHU WKDW WKH 3&V ODFN RI
<RXKHDU,DQFDOORXWDVWKHZDJRQWXUQVDQGKHDGVZHVW NQRZOHGJH UHJDUGLQJ +LOOPHQ WUDGLWLRQV FRXOG JUHDWO\
 |0DNHXVSURXGWREH<HRPHQ} DIIHFW WKHLU DFFHSWDQFH E\ WKH FODQ 6KH ZLOO IROORZ DQ\
 FRQYHUVDWLRQWKH3&VFKRRVHWRHQJDJHLQEXWDOZD\VWULHV
&UHDWXUHV 5LDQH DJH  KDV WKH GDUN FRPSOH[LRQ DQG WR EULQJ WKH WRSLF EDFN DURXQG WR WKH +LOOPHQ 6KH WULHV
ZDY\EODFNKDLUFRPPRQWRKHUSHRSOH6KHLVJHQHUDOO\ WRVSHFLILFDOO\LPSDUWWKHIROORZLQJ
IULHQGO\HVSHFLDOO\WRDWWUDFWLYHPDOHVDQGWDONDWLYH6KH  &RQYHUVDWLRQIRUWKHILUVWGD\UHJDUGLQJUDFHV
KDVDOPRVWQRDFFHQWGXHODUJHO\WRWUDYHOLQJPRVWRIWKH 
6KHOGRPDUYDOOH\UHJLRQIRUWKHSDVWWZHQW\\HDUVWUDGLQJ |7KH&XPDOKKDYHOLYHGLQWKHVHKLOOVIRUFHQWXULHV'XULQJWKDW
KHUFODQVJRRGV WLPH WKH GZDUYHV DQG ODWHU WKH JQRPHV DQG KDOIOLQJV KDYH
 SURYHQ WKHPVHOYHV DV VWURQJ DOOLHV :KLOH GZDUYHV DUH
5LDQH 5  Q HG2VLDQ G V Q HG5RQDQ G5  SDUWLFXODUO\UHVSHFWHGIRUWKHLUORYHRIEDWWOHVRFORVHO\PLUURULQJ
QQ)HPDOHKXPDQ([S5RJ RXU RZQ WKH JQRPHV DQG KDOIOLQJV DUH QR OHVV KRQRUHG $Q\
 PHPEHURIWKHVHUDFHVLVWUHDWHGDVDQHTXDODPRQJP\SHRSOH
0HYDQDJHLVZHOORYHUVL[DQGDKDOIIHHWWDOOZLWKD +RZHYHULIRQHSURYHVFRZDUGO\RUXQWUXVWZRUWK\KHLVGRXEO\
FKHVW SUREDEO\ KDOI WKDW ZLGH +H KDV WKH ZHOOPXVFOHG GLVKRQRUHGDVKHEHWUD\VERWKWKH+LOOPHQDQGKLVRZQUDFH}
SK\VLTXH RI D EODFNVPLWK 'HVSLWH KLV LQWLPLGDWLQJ VL]H  |:KLOH GZDUYHV DUH UHVSHFWHG DV WKH QDWLYH UDFH RI WKHVH
0HYDQ LV JHQHUDOO\ MRYLDO H[FHSW WRZDUG WKH .HRLVK KLOOV WKH &XPDOK EHOLHYH WKH HOYHV ZHUH WKH WUXH VRYHUHLJQV RI
ZKRPKHFRQVLGHUVWREHHQHPLHVRIWKH/HDJXH PRVWRIWKHUHJLRQQRZFRYHUHGE\WKH/HDJXHEHIRUHRXUFRPLQJ
 7KHHOYHVRIOHJHQGDUHPDJLFDOKHURLFEHLQJVSK\VLFDOO\VLPLODU
0HYDQ 0 YQ -RUGDQQD MRU'Q 0DOH KXPDQ WRZKDW\RXZRXOGFDOOJUD\HOYHVEXWWDOOHUWKDQKXPDQV7KH
([S:DU DQFLHQWHOYHVDUHFRQVLGHUHGFKLOGUHQRIWKHJRGVOHJHQGVHYHQWHOO
 RIFHUWDLQHOYHVWKH|6HUYDQWVRIWKH6N\}WKDWKDGZLQJV:KLOH
7UHDVXUH 5LDQH KDV WUDGHG PRVW RI KHU JRRGV WR WKH PRGHUQHOYHVDUHQRWFRQVLGHUHGHTXDOZLWKWKLVDQFLHQWUDFHWKH
YLOODJHUV IRU UDZ LURQ LQJRWV URXJKO\ D WRQ 6KH GRHV &XPDOKKDYLQJOLWWOHUHDOH[SHULHQFHZLWKHOYHVVWLOOWUHDWWKRVH
KRZHYHU KDYH VHYHUDO LWHPV DYDLODEOH IRU VHOO WR WKH3&V RIHOYHQGHVFHQWZLWKJUHDWUHVSHFWFRQVLGHULQJDOOVXFKSHRSOHWR
LQFOXGLQJ  EDVWDUG VZRUGV  JS HDFK  VXLWV RI KDYH PRUH KRQRU WKDQ KXPDQV (OYHV DUH LQ WXUQ H[SHFWHG WR
VWXGGHG OHDWKHU DUPRU  JS HDFK  EDFNSDFNV  JS WDNH RQ PRUH DQG GR PRUH WKDQ PHUH KXPDQV GXH WR WKHLU
HDFKEHOWSRXFKHVJSHDFKDQGZDWHUVNLQVJS DQFLHQW KHULWDJH 1RW RQO\ PXVW HOYHV DOZD\V DFW ZLWK FRXUDJH
HDFK $OO RI WKH OHDWKHU LWHPV KDYH WRROHG LPDJHV RI
QDWXUH DQG IRUHVWV HWFKHG LQWR WKHP ZKLOH WKH VZRUGV
VSRUWERDUDQGJRDWPRWLIV
 EORRG HQHPLHV RI WKH &XPDOKWKH\KDYHZDUUHGZLWKRXUFODQ
'HYHORSPHQW 5LDQH ZLOO QRW DOORZ WKH 3&V WR GHOD\ KHU
OHDYLQJ$Q\WKDWUHIXVHWROHDYHZLWKLQWKHKRXUDUHWROG
WR FDWFK XS WR WKH ZDJRQ LI WKH\ VWLOO ZLVK WR JHW WR WKH
&ODQKROG$Q\3&WKDWGRHVQRWKDYHDKRUVHPD\ULGHRQ
WKHZDJRQ
 EDVLVWKURXJKJUHDWGHHGVRIFRPEDWDQGFRXUDJH}
(1&2817(5
$V WKH KRUVHV SORG GRZQ WKH KDUGSDFNHG URDG WKH VXQ ULVHV
KLJKHU LQ WKH PRUQLQJ VN\ ZDUPLQJ \RX 7KHZHVWHUQVSXURI
WKH-RWHQVORRPVLQWKHGLVWDQFHLWVVQRZFDSSHGSHDNVJOLVWHQLQJ
LQWKHVXQJURZLQJODUJHUDV\RXWUDYHOIXUWKHUIURP6LQJOHWRQ
5LDQH RQO\ KDOIGULYHV LW VHHPV WKH KRUVHV NQRZ WKLV URXWH
DOPRVWE\KHDUW$IWHUULGLQJLQVLOHQFHIRUDELWDORQJWKHKDUG
SDFNHG HDUWKHQ URDG VKH WXUQV |6R WHOO PH ZKDW \RX NQRZ RI
P\SHRSOH}
 
7KLV FRQYHUVDWLRQ ZLOO VWUHWFK RYHU WKH HQWLUH WZRGD\
MRXUQH\ WR &ODQKROG &XPDOK '0V VKRXOG IHHO IUHH WR
UROHSOD\ WKLV HQFRXQWHU DV PXFK DV SRVVLEOH DV WKH
LQIRUPDWLRQ 5LDQH KDV WR LPSDUW LV FUXFLDO WR WKH 3&V
VXFFHVV ODWHU RQ 5LDQH LV JHQXLQHO\ LQWHUHVWHG LQ WDONLQJ
ZLWKWKH3&V6KHWUXWKIXOO\DQVZHUVDQ\TXHVWLRQVWRWKH
EHVW RI KHU DELOLW\ $V VKH KDV IDU PRUH H[SHULHQFH ZLWK
+ROHLQWKH:DOO
DQG KRQHVW\ WKH\ PXVW FRQVWDQWO\ JR EH\RQG ZKDW KXPDQV
ZRXOGW\SLFDOO\GR}
 |'XH WR RXU SUR[LPLW\ WR WKH -RWHQV RUFV DUH FRQVLGHUHG
IRU FHQWXULHV $V VXFK KDOIRUFV DUH FRQVLGHUHG HQHPLHV XQWLO
SURYHQ RWKHUZLVH 7KH\ DUH DWWULEXWHG QR SHUVRQDO KRQRU DQG
WKXV QR ULJKWV ZLWKLQ RXU VRFLHW\ , P\VHOI DP QRW SUHMXGLFHG
DJDLQVW KDOIRUFV DQG DFWXDOO\ HPSOR\ WKHP RQ RFFDVLRQ LQ
<HRPDQFLWLHVEXWGRQRWH[SHFWP\FODQWREHVRIDYRUDEOH+DOI
RUFV FDQ KRZHYHU SURYH WKHPVHOYHV ZRUWK\ RQ DQ LQGLYLGXDO

7KHWULSWR&XPDOKLVURXJKO\PLOHVZLWKDERXWKDOIRI
WKDW DORQJ WKH )RUW 7KRPDV6LQJOHWRQ URDG 2Q WKH ILUVW
GD\ 5LDQH UHVWV WKH KRUVHV DIWHU IRXU KRXUV ZDWHULQJ
WKHP DW D URDGVLGH VKULQH WR )KDUODQJKQ  6KH RIIHUV D
PHDO WR WKH 3&V SXOOLQJ GULHG PHDW FKHHVH EUHDG DQG
IUXLWV IURP EHQHDWK WKH VHDW RI WKH ZDJRQ $IWHU DQRWKHU
IRXUKRXUVRIWUDYHOVKHSXOOVWKHZDJRQRIIWKHPDLQURDG
RQWR D VPDOOHU SDWK WKDW ZLQGV VRXWK LQWR WKH KLOOV 6KH
VWRSVDWWKLVLQWHUVHFWLRQWRPDNHFDPSIRUWKHQLJKWZLWK
DERXWDQKRXURIVXQOLJKWOHIW
|:HDUHPRUHWKDQKDOIZD\WRWKH&ODQKROGQRZEXWWKHODVW
OHJLVPRUHGLIILFXOWIRUWKHKRUVHV:HZLOOUHVWKHUHIRUWKHQLJKW
DQG VWDUW IUHVK LQ WKH PRUQLQJ :LWK JRRG WLPH ZHZLOOEHDW
WKHKLOOIRUWEHIRUHQLJKWIDOOWRPRUURZ}

7KH QLJKW SDVVHV XQHYHQWIXOO\ DQG 5LDQH KDV WKH KRUVHV
UHDG\ WR JR VKRUWO\ DIWHU VXQULVH ,I DVNHG DERXW VHWWLQJ
 3DJH
JXDUGV 5LDQH FRQILGHQWO\ DVVXUHV WKH 3&V WKDW WKH
SUHVHQFHRIKHUFODQFRXSOHGZLWKWKH<HRPDQSDWUROVLQ
WKH -RWHQV VHUYH WR GLVVXDGHPRVWKRVWLOHFUHDWXUHV7KH\
DUHZHOFRPHKRZHYHUWRVHWDJXDUGLIWKH\ZLVK
 2QWKHVHFRQGGD\DERXWWZRKRXUVLQWRWKHWULSWKH
IROORZLQJRFFXUV
 \RX VKRXOG LQFOXGH WKH JUHDWHVW RI \RXU GHHGV DV ZHOO WKRXJK
7KHZDJRQUROOVDORQJDWDVORZHUSDFHWKDQWKHGD\EHIRUHWKH
SDWK LV QRW TXLWH DV ZHOO ZRUQ DV WKH URDG DQG WKH WHUUDLQ LV
UDWKHUVWHHSLQSODFHVDVLWZLQGVWKURXJKWKHKLOOVDQGYDOOH\V
$V\RXWUDYHOVRXWK\RXSDVVWZRVWRQHSLOODUVQHDUO\WKHKHLJKW
RIDKXPDQRQHRQHLWKHUVLGHRIWKHURDG5LDQHVWHSSLQJIURP
WKH ZDJRQ WR WRXFK D V\PERO FDUYHG LQWR HDFK SLOODU H[SODLQV
|7KHVHPDUNWKHERUGHUVRIRXU&ODQKROG:LWKLQWKHVHERUGHUV
DOO&XPDOKDUHSURWHFWHG}
 ,QWKHGLVWDQFH\RXRFFDVLRQDOO\VHHODUJHPRXQGVRIURFNV
LQWKHFHQWHURIFOHDULQJV1RWLFLQJ\RXUDWWHQWLRQ5LDQHDJDLQ
H[SODLQV |7KRVH DUH WKH EDUURZPRXQGV RI WKH $QFLHQWV 7KH\
ZDUULRU DQG OHDGHU RI WKH FKLHIWDLQV HOLWH LV WKH GDXJKWHU RI D
VLPSOHIDUPHU}
 |:KHQLQWURGXFLQJ\RXUVHOILWLVLPSRUWDQWWRGHVFULEH\RXU
OLQHDJHVRWKDWRWKHUVPD\NQRZ\RXUSODFH,IRULQVWDQFHWUDFH
P\ OLQHDJH WR 5RQDQ QREOHFKLHIWDLQRIWKH&XPDOKVRPH
\HDUVDJR,I\RXUOLQHDJHLVQRWOLNHO\WREHNQRZQE\P\SHRSOH
ERDVWIXO VSHHFK PLJKW ZLQ \RX D FKDOOHQJH RI KRQRU WR SURYH
\RXUVHOI}
 |<RXKDYH,DPVXUHKHDUGRIRXUIDPRXVZDUULRUVWKDWIO\
LQWR DQLPDOLVWLF UDJHV GXULQJ FRPEDW 7KHVH VSHFLDO ZDUULRUV
KDYLQJWKHEORRGRIWKHMRWHQ{WKHDQFLHQWJLDQWV{DUHDFWXDOO\
DVUDUHDPRQJRXUSHRSOHDVDPRQJ\RXUV+RZHYHUWKH\HQMR\
DQ KRQRUHG SODFH LQ RXU VRFLHW\ LQYDULDEO\ VHUYLQJ DV WKH
FKLHIWDLQVHOLWHJXDUG}
 |2XU FKLOGUHQV JDPHV WHDFK WKH \RXQJ RQHV WKH ZD\V RI
KXQWLQJVWUDWHJ\DQGKRQRUDEOHZDUIDUH:HDFNQRZOHGJHWKH
QHFHVVLW\RIVWHDOWKDWWLPHVDVLQJOH+LOOPDQZDUULRUZLOOQRW
DUH VDFUHG VLWHV WR P\ SHRSOH 0DQ\ PHQ HQWLFHG E\ UXPRUV RI IRROLVKO\FKDOOHQJHDJLDQWWRGLUHFWFRPEDWEXWVWHDOLQJO\LQJ
PDJLFRUE\'XVWGLJJHUJROGKDYHWULHGWRJDLQHQWUDQFHWRWKHP DQG RWKHU VXFK DFWLRQV DUH FRQVLGHUHG WR EH ZLWKRXW KRQRU 7R
IRU SOXQGHU &ODQ &XPDOK KDVwOLWWOH WROHUDQFH IRU VXFK ZLQDILJKWE\VXFKPHDQVLVZRUVHWKDQORVLQJ}
DWWHPSWV}  |,QFRQWUDVWWRRXUUHVSHFWIRUZDUULRUVP\FODQLVVXVSLFLRXV
 RI WKRVH WKDW ZLHOG DUFDQH SRZHUV{RXU KLVWRU\ WHOOV RI D GDUN
6KHVHHPVWRKDYHDIDURIIORRNLQKHUH\HDVVKHVSHDNV WLPH PLOOHQQLD DJR ZKHQ ZH IOHG WR WKLV ODQG IURP WKH HYLO
EXWZLOOVD\QRPRUHDERXWWKHPRXQGV PDJLFVRIWKHQRUWK7KH&XPDOKGRKDYHFODQPHPEHUVVNLOOHG
 LQWKHVRUFHURXVDUWVLQGLYLGXDOVZLWKWKHEORRGRIWKHROYH{WKH
$VWKHZDJRQMRVWOHVDORQJ\RXQRWLFHWKHSLQHDQGILUWUHHVPRUH DQFLHQWHOYHV{IORZLQJWKURXJKWKHLUYHLQV,QGHHGZHEHOLHYHLW
FRPPRQQHDUWKH-RWHQVEHJLQWRPL[ZLWKRDNDQGPDSOHDQG LV WKLV EORRG WKDW JLYHV SRZHU WR WKH VRQJV RI RXU EDUGV DQG
WKHWUHHVZKLFKKDGEHHQFOHDUHGDZD\IURPWKHPDLQURDGIRUD PLQJOHGZLWKWKHEORRGRIWKHGUXLGVWRWKHYLVLRQVRIRXUVHHUV
KXQGUHG\DUGVQRZJURZTXLWHFORVHWRWKHSDWK7KHZRRGODQG 7KRVH ZLWK VRUFHURXV SRZHUV WKDW GR QRW IROORZ WKH SDWK RI WKH
LVQRWDTXLHWSODFHILOOHGZLWKWKHFKLUSRIELUGVDQGEX]]LQJRI EDUG RU VHHU ZKLOH UHVSHFWHG DUH HQFRXUDJHG WR SUDFWLFH PRUH
LQVHFWV 7KH IRUHVW LV VLOHQFHG KRZHYHU ZKHQ D ORDG |&UDFN} KRQRUDEOH SXUVXLWV 0DQ\ DUH FUDIWVPHQ GLSORPDWV RU HYHQ
HFKRHVWKURXJKWKHKLOOVDQGWKHZDJRQVXGGHQO\OXUFKHVWRWKH VNLOOHG ZDUULRUV 0\ SHRSOH QHYHU EHFRPH ZKDW \RX ZRXOG FDOO
ULJKW ZL]DUGV DQG DOO VXFK IRON DUH ZDWFKHG FDUHIXOO\ :KLOH RXU
 GLVOLNHRIZULWLQJ{WRZULWHVRPHWKLQJGRZQDIWHUDOOPHDQVLW
3&VLQWKHZDJRQPXVWPDNHD%DODQFHFKHFN'&WR LVQRWLPSRUWDQWHQRXJKWRFRPPLWWRPHPRU\{KDVVRPHWKLQJ
DYRLGEHLQJWKURZQIURPWKHZDJRQLQWRDPXGKROHQR WR GR ZLWK WKLV ZDULQHVV LW UXQV PXFK GHHSHU 6XFK VLQJOH
GDPDJH H[FHSW WR WKH 3&V SULGH 0DNH VHFUHW /LVWHQ PLQGHGGHGLFDWLRQWRWKHDUFDQHLVORRNHGXSRQDVDQXQQDWXUDO
FKHFNV '&  IRU HDFK 3& DV ZHOO 3ULYDWHO\ LQIRUP
WKRVH WKDW FKHFN VXFFHVVIXOO\ WKDW WKH\ KHDU WLQNOLQJ
ODXJKWHU FRPLQJ IURP WKH IRUHVW ,I DQ\ 3& KHDUV WKH
ODXJKWHU DQG PHQWLRQV LW LQ 5LDQHV SUHVHQFH VKH ZLOO
QRWHWKDWWKHIH\RIWKLVODQGDUHNQRZQIRURIWHQSOD\LQJ
WULFNVRQWUDYHOHUV
 7KH ULJKW IURQW ZDJRQ ZKHHO KDV EURNHQ LQ KDOI
5LDQHKRZHYHULVXVHGWRVXFKRFFXUUHQFHVRQWKLVURXJK
URDG 6KH KDV D EORFN DQG WDFNOH IRU OLIWLQJ WKH D[OH DQG
WZRH[WUDZKHHOVVWRZHGXQGHUWKHZDJRQ:LWKWKH3&V
KHOSWKHZKHHOLVUHSODFHGLQDERXWDQKRXUDIWHUZKLFK
5LDQH FDOOV D EUHDN IRU OXQFK 7KH UHVW RI WKH MRXUQH\
FRQWLQXHV ZLWKRXW LQFLGHQW DQG 5LDQH FRQWLQXHV
LQIRUPLQJWKH3&VDERXWKHUFODQ
 &RQYHUVDWLRQIRUWKHVHFRQGGD\UHJDUGLQJFODVVHV
 5LDQH)HPDOHKXPDQ([S5RJ
|:KLOH,FRXOGQRWKRSHWRLPSDUWWR\RXWKHIXOONQRZOHGJHRI
LQWHUHVWLQSRZHUVWKDWRQFHOHGWRFRUUXSWLRQDPRQJP\SHRSOH}
 |$ ILQDO ZDUQLQJWKH&XPDOKDUHDUGHQWIROORZHUVRIWKH
2OG )DLWK WKH 'UXLGV KDYLQJ VHUYHG DV MXGJHV DQG DGYLVRUV
DPRQJXVIRUXQWROGFHQWXULHV7KRVHWKDWIROORZRWKHUJRGVDUH
WROHUDWHG DPRQJ P\ SHRSOH LQGHHG PDQ\ RI WKHVH JRGV KDYH
IRXQG WKHLU ZD\ LQWR RXU VWRULHV +RZHYHU GR QRW DWWHPSW WR
SURVHO\WL]H DPRQJ WKH FODQ 6XFK GLVUHVSHFW IRU WKH 2OG :D\V
ZLOO ZLQ \RX QR KRQRU DQG PD\ UHVXOW LQ D FKDOOHQJH LI \RX
RIIHQG WKH ZURQJ ZDUULRU <RX PXVW DW DOO WLPHV GHIHU WR WKH
'UXLGV IRU WKH\ FDUU\ WKH ODZV RI RXU SHRSOH :KLOH RXU VHHU
IRUHVDZ\RXUFRPLQJLWZDVWKH'UXLGVWKDWGHYLVHGWKHWHVWV\RX
FDQEHVXUH}

&UHDWXUHV


+LOOPDQKRQRU,FDQWHOO\RXWKLVDZDUULRULVUHVSHFWHGDERYH )LQWKH)R[3KRXNDKSVHH$SSHQGL[$
DOOHOVH(YHU\+LOOPDQLVERUQZLWKDFHUWDLQKRQRUGHWHUPLQHG 
E\ OLQHDJH 7KRVH RI QREOH ELUWK ZLWK DQFHVWRUV WKDW ZHUH RQFH 3L[LHV  KS     VHH 0RQVWHU 0DQXDO SDJH 
FKLHIWDLQV RU NLQJV DUH KHOG WR EH PRUH KRQRUDEOH WKDQ VLPSOH 
IUHHPHQ +RZHYHU HYHQ D IUHHPDQ FDQ GLVWLQJXLVK KLPVHOI 
WKURXJK JUHDW DFWV RI FRPEDW DQG FRXUDJH %UHH\D RXU JUHDWHVW

+ROHLQWKH:DOO  3DJH
7DFWLFV )LQ QRZ LQ KLV IR[ IRUP WUDLOV WKH ZDJRQ 
WKURXJKRXW WKH MRXUQH\ 2EVHUYDQW 3&V PD\ QRWLFH D 7KH IRUWLILFDWLRQ GRHV LQGHHG WDNH XS WKH HQWLUH KLOO WKH WRS RI
VLOYHU\ IR[ SHHULQJ DW WKH ZDJRQ IURP WKH WUHHV 6SRW ZKLFK KDV EHHQ IODWWHQHG WR DFFRPPRGDWH LW ,W VHHPV WR EH
FKHFN'&{RQO\LID3&DFWLYHO\PDNHVDFKHFN5LDQH FRQVWUXFWHG RI ORRVH VWRQHV VWDFNHG RQH RQ WRS RI WKH RWKHU WR D
QRWHV WKDW VXFK FUHDWXUHV DUH QDWLYH WR WKH /LWWOH +LOOV KHLJKWRIDWOHDVWRUIHHW7KHEDVHSUREDEO\RQHKXQGUHG
DOWKRXJK WKH VLOYHU RQHV DUH TXLWH UDUH DQG JHQHUDOO\ DUH \DUGV ZLGH RU PRUH VORSHV XSZDUG IRU DERXW KDOI WKH KHLJKW RI
VHHQDVDVLJQRIJRRGIRUWXQHFRPLQJWKURXJKDGYHUVLW\ WKHIRUWEHIRUHWKHZDOOVWUDLJKWHQVWRIRUPDFRQH5LDQHEULQJV
+H LV DFFRPSDQLHG E\ IRXU VSULWHV DOO LQYLVLEOH ZKLFK WKHZDJRQEHIRUHWKHKHDY\ZRRGHQJDWHDQGOHDSVWRWKHJURXQG
DUH VXSSRVHG WR SURYLGH DLG LQ GULYLQJ RII DQ\ QXLVDQFHV PRWLRQLQJIRU\RXWRIROORZ
WKDWPLJKWVORZWKHSDUW\7KH\GHWHUPLQHKRZHYHUWKDW 
WKHWULSLVEHFRPLQJUDWKHUERULQJDQGVRGHFLGHWRULJWKH $VVXPLQJWKH3&VIROORZ5LDQH
ZDJRQ ZKHHO WR EUHDN WR JHW VRPH ODXJKV DW WKH 3&V 
H[SHQVH5LDQHLVXQDZDUHRIKHUHVFRUW3&VWKDWFDQVHH $V \RX SDVV WKURXJK WKH JDWH \RX ILQG WKH KLOOIRUW ILOOHG ZLWK
WKH LQYLVLEOH VSULWHV ZLOO DWWUDFW 5LDQHV LQWHUHVW DV VKH SHRSOH DOO ODXJKLQJ GULQNLQJ DQG HDWLQJ 7KH LQWHULRU
EHOLHYHVWKH\KDYH|WKHVLJKW} EXLOGLQJVDOOVHHPWREHEXLOWLQWRWKHZDOORIWKHIRUWOHDYLQJWKH
 FHQWHU RSHQ $ KXJH ERQILUH FUDFNOHV LQ WKH FHQWHU DQG PDQ\
7UHDVXUH7KHRQO\WUHDVXUHLVDQ\JRRGV5LDQHGLGQRWVHOO SHRSOH GUHVVHG LQ EXFNVNLQ DQG IXUV ZLWK IDFHV DQG ERGLHV
WRWKH3&VLQ(QFRXQWHU7ZR SDLQWHGLQEULOOLDQWFRORUVDUHVLQJLQJDQGGDQFLQJDURXQGWKH
 ILUHWRWKHPXVLFRIKDUSGUXPO\UHDQGIOXWH2QWKHIDUVLGHD
'HYHORSPHQW$Q\YLROHQFHRQWKH3&VSDUWDJDLQVW5LDQH JURXSRIRUVRPHQDQGZRPHQVLWZDWFKLQJWKHGDQFHUV$
ZLOOUHVXOWLQDQLPPHGLDWHDWWDFNE\WKHLQYLVLEOHVSULWHV IHDVWRIPHDWVIUXLWVDQGYHJHWDEOHVDQGYDULRXVEUHDGVLVVSUHDG
)LQ DYRLGV FRPEDW XQOHVV LW JRHV YHU\ SRRUO\ IRU 5LDQH RXWEHIRUHWKHPRQDORQJZRRGHQWDEOH$V\RXQHDUWKHERQILUH
DQG WKH VSULWHV ,Q VXFK D FDVH KH WXUQV LQWR D GUDJRQQH RQH PDQ DPRQJ WKLV JURXS VWDQGV DQG WKH PXVLF FHDVHV 7KH
IO\  IW SRRU DQG DWWHPSWV WR VFDUH WKH 3&V DZD\ FURZGWXUQVH[SHFWDQWO\WRZDUG\RXDVGRHV5LDQH
ZKLOHVWLOODYRLGLQJGLUHFWFRPEDWDQGDVDODVWUHVRUWZLOO
SLFN5LDQHXSDQGIO\DZD\7KLVFRXUVHRIDFWLRQOHDGVWR
LPPHGLDWHIDLOXUHRIWKHPLVVLRQ
 
(1&2817(5
$VGDUNQHVVEHJLQVWRIDOODURXQG\RX5LDQHREYLRXVO\EHFRPHV
PRUHXSVHWE\WKHWLPHORVWIL[LQJWKHZDJRQZKHHO8QGHUKHU
EUHDWK \RX KHDU KHU FXUVLQJ |:H VKRXOG KDYH EHHQ WKHUH DQ
KRXU DJR 7KH IHDVW ZLOO EH GHOD\HG} :LWK WKRVH ZRUGV WKH
ZDJRQFUHVWVWKHKLOOEUHDNLQJWKURXJKWKHWUHHOLQH$KHDGLQ
WKHGDUNQHVV\RXVHHDWRZHUORRPLQJLQWKHPRRQOLJKW,WVHHPV
WR FRYHU WKH HQWLUH SLQQDFOH RI WKH QH[W ULVH /LJKWV IURP
IOLFNHULQJWRUFKHVGDQFHDURXQGWKHEDVHRIWKHVWUXFWXUHQHDUD
ODUJH ZRRGHQ JDWH )RXU RI WKHVH OLJKWV EUHDN DZD\ IURP WKH
WRZHUDQGEHJLQKHDGLQJWRZDUG\RX

)RXU RI WKH FKLHIWDLQV JXDUGV DUH DSSURDFKLQJ RQ
 |7KDW LV &RQQRFK FKLHIWDLQ RI &ODQ &XPDOK 5HPHPEHU
ZKDW,KDYHWROG\RX}VKHZKLVSHUV
 :LWK WKRVH ZRUGV 5LDQH VWULGHV SDVW WKH ILUH WRZDUG WKH
FKLHIWDLQ
|+DLO&RQQRFK5LDQHDQ2VLDQDQ5RQDQKDVUHWXUQHGWR
&XPDOKEHDULQJLURQIURPWKH<HRPHQRI6LQJOHWRQ,KDYHDOVR
EURXJKW RXU <HRPHQ JXHVWV DV \RX UHTXHVWHG 0D\ &XPDOK EH
SOHDVHG}

&RQQRFKZLWKDVOLJKW6FRWWLVKDFFHQWUHSOLHV

|&XPDOKLVSOHDVHG5LDQHIRU\RXDOZD\VVHUYHZHOO3OHDVHMRLQ
PHDWP\WDEOH}
 5LDQHZDONVWRWKHORQJWDEOHWDNLQJDVHDWRIIHUHGXSE\D
\RXQJ+LOOPDQWRWKHOHIWRI&RQQRFKVVHDW

7KH3&VPXVWLQWURGXFHWKHPVHOYHVEHIRUHWKHFODQ7KH\
DUH VRPH  IHHW IURP WKH FKLHIWDLQ FXUUHQWO\ DQG VR
VKRXOG DSSURDFK KLP RWKHUZLVH WKH\ ZLOO KDYH WR VKRXW
WKHLU LQWURGXFWLRQV :KHQ WKH\ SDVV WKH ERQILUH
KRUVHEDFN )LQ LQIRUPHG WKH NLQJ VXUUHSWLWLRXVO\ RI WKH
&RQQRFKDGYDQFHVWRZLWKLQIHHW
GHOD\ DQG VR QR RQH ZDV VHQW WR ILQG 5LDQH 7KLV JXDUG

ZDV SRVWHG WR ZDWFK IRU WKH DSSURDFKLQJ ZDJRQ YLVLEOH
&RQQRFKPRYHVWRZDUG\RXVWRSSLQJVRPHIHHWDZD\$OLWWOH
GXHWRWKHODPSVKDQJLQJIURPSRVWVRQWKHIURQWDQGWR
HVFRUW WKH 3&V WR WKH KLOOIRUW 7KH ZDUULRUV ULGH XS
FDVXDOO\ WR JUHHW WKH ZDJRQ XQOHVV WKH 3&V DFW
DJJUHVVLYHO\ LQ ZKLFK FDVH WKH\ ZLOO DFW WR GHIHQG
WKHPVHOYHVZLWKRQHULGHUUHWXUQLQJWRWKHIRUWWRLQIRUP
WKHFKLHIWDLQWKH3&VZLOOVRRQEHIDFLQJRYHUDKXQGUHG
RYHUVL[IHHWWDOOKHLVVWLOODSRZHUIXOO\EXLOWPDQGHVSLWHKLVDJH
8QOLNHPRVWRIWKHSHRSOHDURXQG\RX&RQQRFKKDVIDLUHUVNLQ
DQGVSRUWVDEODFNEHDUGDQGPXVWDFKHVWUHDNHGZLWKJUD\$VKH
FRPHV IRUZDUG \RX QRWLFH WKH ZRPDQ WKDW ZDV VLWWLQJ WR KLV
ULJKW ULVH WR KHU IHHW \RX FDQ VHH WKH KLOW RI DYHU\ODUJHVZRUG
VWUDSSHG WR KHU EDFN %HKLQG KHU VRPHZKDW PDVNHG E\ WKH
DUPHGDQGDQJU\+LOOPHQ VKDGRZV VWDQGV D WDOO HOGHUO\ PDQ OHDQLQJ RQ D JQDUOHG VWDII
 7KHOHDGJXDUGVSHDNVZLWKDVWURQJ6FRWWLVKDFFHQW +HJD]HVDW\RXLQWHQWO\
  &RQQRFKV YRLFH LV FRPPDQGLQJ WKRXJK PDUNHG ZLWK D
|+DLO5LDQH&RQQRFKHDJHUO\DZDLWV\HUDUULYDO,VHHRXUTXHVWV QRWLFHDEOHDFFHQWWKDW\RXGLGQRWKHDULQ5LDQHVVSHHFK|+DLO
DUHZLWK\HDVZHOO&ODQ&XPDOKDZDLWV\HLQWKHIHVWKDOO} NLQGIRONRIWKH/HDJXHDQGZHOOPHW,DP&RQQRFKHG/DUHQ
 HG&XPDOKFKLHIWDLQRI&ODQ&XPDOKDQGORUGRIWKLV&ODQKROG
:LWK WKDW WKH ULGHUV UHWXUQ WR WKH KLOOIRUW WR LQIRUP <RXDUHZHOFRPHDPRQJRXUSHRSOH}
&RQQRFKRIWKH3&VDUULYDO5LDQHIROORZVLQWKHZDJRQ

+ROHLQWKH:DOO  3DJH
 1RWLFLQJ \RXU JODQFH DW WKH VWDQGLQJ ZDUULRU &RQQRFK
FRQWLQXHV|7KDWLV%UHH\DDQ8U6ZRUGRIWKH&XPDOK6OD\HU
RI*LDQWVWKHOHDGHURIP\ILQHVWZDUULRUV*HYURJWKH:LVHPRVW
UHVSHFWHG 'UXLG RI WKH 2OG )DLWK VWDQGV EHKLQG KHU +H ZLOO
HQVXUHWKDW$OOLWXU
VZLOOLVGRQHWRGD\} 
DQGKDVVHUYHGDV&XPDOKVFKDPSLRQIRUWKHSDVWWZHOYH
\HDUV 6KH UHFHLYHG WKH WLWOH 6OD\HU RI *LDQWV DIWHU VLQJOH
KDQGHGO\ GLVSDWFKLQJ D KLOO JLDQW DV WKH UHVW RI KHU FODQ
IRXJKWRIDQDWWDFNRIRJUHVDQGRUFV
 &RQQRFKWKHQSDXVHVH[SHFWDQWO\w %UHH\D %5  DQ8U DQ85 )HPDOH KXPDQ
 %DU:DU
$IWHU WKH 3&V LQWURGXFH WKHPVHOYHV &RQQRFK ELGV HDFK 
WRWDNHDVHDWDFFRUGLQJWRWKHLUKRQRUDVGHWHUPLQHGE\ *HYURJ KDV OLYHG DPRQJ WKH &XPDOK ORQJHU WKDQ DQ\
DSSHDUDQFH DQG TXDOLW\ RI LQWURGXFWLRQ 6HH WKH WDFWLFV FODQVPDQ FDQ UHPHPEHU +H LQVWUXFWV WKH \RXQJ LQ WKH
VHFWLRQDQG'0$LG ZD\V RI WKH 2OG )DLWK DQG PHQWRUV SRWHQWLDO FDQGLGDWHV
 IRULQLWLDWLRQLQWRWKHUDQNVRIWKH'UXLGV,QDGGLWLRQDV
:KHQ HYHU\RQH LV VHDWHG &RQQRFK LQYLWHV \RX WR MRLQ LQ WKH WKH KLJKHVWUDQNLQJ GUXLG LQ WKH &XPDOK ODQGV *HYURJ
IHDVW$V\RXHDWWKHVLQJLQJDQGGDQFLQJEHJLQDJDLQ VHUYHVDVDGYLVRUWRWKHFKLHIWDLQDQGMXGJHLQGLVSXWHVRI
 |'R \RX NQRZ WKH DQFLHQW ODQJXDJH RI RXU SHRSOH"} KRQRURUODZ
&RQQRFKDVNV|<RXZRXOGFDOOLW)ODQRU)ODQQDH)HZDPRQJ 
XVVWLOOVSHDNLWIOXHQWO\VDYHWKHGUXLGVDQGEDUGVEXWRXUROGHVW *HYURJJ95*0DOHKXPDQ'UG
VRQJVDUHVWLOOVXQJLQLW7KHVRQJWKH\VLQJQRZWHOOVRIWKHWLPH 
ZKHQ /DFKWQD IDWKHU RI WKH JUHDW WULEH WR ZKLFK WKLV FODQ 7DFWLFV8VH'0$LGWRKHOSDGMXGLFDWHWKLVHQFRXQWHU
EHORQJV UHIXVHG WR MRLQ KLV EURWKHU 'RQQFKDGK LQ WKH EDWWOH
DJDLQVW WKHLU ROGHU EURWKHU 6LWKLJ <HRPHQ VKRXOG NQRZ WKLV
VRQJ IRU ZLWKRXW 'RQQFKDGKV DLG 6LWKLJ DQG KLV WULEH ZRXOG
KDYHGHVWUR\HG\RXU\RXQJQDWLRQLQLWVWLPHRIZHDNQHVVDIWHU
WKHGHIHDWRI$VEHUGLHV7RWKLVGD\WKH6LWKLJDUHEORRGHQHPLHV
RIDOO<HRPHQDVZHOODVWKHWULEHVRI/DFKWQDDQG'RQQFKDGK}
 $IWHUDSDXVHKHORRNVDW\RXDQGVPLOHV|,VQRZWKHWLPH
IRURXUSHRSOHDQG\RXUVWRILJKWDVRQH"}
 %HIRUH\RXFDQDQVZHUDSDQWLQJ+LOOPDQUXQVXSWRWKH
FKLHIWDLQ([FXVLQJKLPVHOIIRUDPRPHQW&RQQRFKFDUULHVRQD
ILOOLQJ VRPH LQIRUPDWLRQ VXFK DV UDFH DQG DSSHDUDQFH
RXWEHIRUHVWDUWLQJWKHDGYHQWXUHZLOOKHOS
 7KHFKLHIWDLQDQGFODQMXGJHWKH3&VODUJHO\EDVHGRQ
DSSHDUDQFHDQGSUHVHQWDWLRQ7KHSDUW\KDVDOUHDG\PDGH
LWV ILUVW LPSUHVVLRQ GXULQJ WKH SUHYLRXV HQFRXQWHUV{
DFFHSWLQJ )LQ WKH *QRPHV RIIHU WR ORRW WKH EDUURZ
PRXQGHDUQVDzPRGLILHUIRUHYHU\SDUW\PHPEHUZKLOH
UHIXVLQJ KLV RIIHU HDUQV D  PRGLILHU $Q\ GHURJDWRU\
FRPPHQWV DERXW WKH +LOOPHQ DV UHSRUWHG E\WKHVS\LQJ
)LQHDUQDzPRGLILHU7KRVHFODGLQDUPRUDQGEHDULQJ
ZKLVSHUHG FRQYHUVDWLRQ ZLWK WKH EUHDWKOHVV ZDUULRU ,Q D
ZHDSRQV RSHQO\ DUH IDYRUHG RYHU XQDUPHG 3&V ZHDULQJ
PRPHQWKHUHWXUQV
UREHV WKH ODWWHU EHLQJ DVVXPHG DV HLWKHU ZL]DUGV RU
 |, DP DIUDLG RXU IHDVW LV FXW VKRUW <RXU KRUVHV ZLOO EH
FOHULFV{DZDUGDWRWKH3&VUHDFWLRQFKHFNLIIDYRUHG
EURXJKWWRWKHJDWHRUZHVKDOOSURYLGHLI\RXKDYHQRQH%UHH\D
 LI QRW 2EYLRXV GUXLGV DQG EDUGV ZLWK PXVLFDO
*HYURJZHOHDYHLPPHGLDWHO\7KHWHVWRIVWUHQJWKEHJLQVQRZ}
 :LWK WKDW &RQQRFK VWULGHV WR WKH JDWH DQG PRXQWV D LQVWUXPHQWV JDLQ D  WR WKH FKHFN LQ SODFH RI HLWKHU
ZDLWLQJ KRUVH %UHH\D DQG KHU ZDUULRUV DORQJ ZLWK WKH GUXLG PRGLILHU 5DFLDOO\ HOYHV DQG KDOIHOYHV DUH LQVWDQWO\
*HYURJIROORZ IDYRUHG HYHQ LI XQDUPHG  WR UHDFWLRQ FKHFN DQG QR
 SHQDOWLHV WKH\ VWLOO JDLQ ERQXVHV GXH WR FODVV
&UHDWXUHV&RQQRFKVRQRI/DUHQKDVOHGWKH&XPDOKIRU DSSHDUDQFH ZKLOH KDOIRUFV DUH UHJDUGHG ZLWK VXVSLFLRQ
PRUH WKDQ  \HDUV WDNLQJ WKH WLWOH RI FKLHIWDLQ DIWHU KLV DQG RSHQ GHULVLRQ  WR WKH UHDFWLRQ FKHFN DQG QR
IDWKHUVGHDWK$OLWWOHRYHUVL[IHHWWDOOWKHFKLHIWDLQLVVWLOO ERQXVHV WKH\ VWLOO JDLQ SHQDOWLHV GXH WR FODVV
DSRZHUIXOO\EXLOWPDQGHVSLWHKLVDJH8QOLNHPRVWRIWKH DSSHDUDQFH 'XULQJ WKH LQWURGXFWLRQV&RQQRFKDQGKLV
SHRSOHRIWKH&XPDOK&RQQRFKKDVIDLUHUVNLQDQGVSRUWV SHRSOHZLOOH[SHFWWRKHDUWKH3&VOLQHDJH,WZRXOGDOVR
DEODFNEHDUGDQGPXVWDFKHVWUHDNHGZLWKJUD\DVLJQRI EH DSSURSULDWH WR PHQWLRQ JUHDW GHHGV DFFRPSOLVKHG RU
KLV PL[HG )ODQ2HULGLDQ DQFHVWU\ +H VSHDNV ZLWK WKH HQHPLHVGHIHDWHGDVWKHFODQLVXQOLNHO\WRNQRZQDQ\RI
VDPHDFFHQWDVKLVSHRSOHWKRXJKQRWQHDUO\DVWKLFN+H WKH3&VDQFHVWRUVDOWKRXJKWRRPXFKLVVHHQDVERDVWIXO
LVJHQHUDOO\DSHDFHIXOPDQVHHNLQJGLSORPDWLFVROXWLRQV $ VXLWDEOH LQWURGXFWLRQ OLVWLQJ D SDUHQW D QRWDEOH
WRSUREOHPVZKHQSRVVLEOHEXWJODGO\OHDGVKLVFODQLQWR DQFHVWRU DQG  RU WZR PDMRU GHHGV JUDQWV D  WR WKH
EDWWOHZKHQGLSORPDF\IDLOV UHDFWLRQFKHFNZKLOHEHLQJERDVWIXODFWXDOO\SHQDOL]HVWKH
 3&  WR WKH FKHFN DQG %UHH\D PD\ FKDOOHQJH WKH 3&V
KRQRU
&RQQRFK .QN HG/DUHQ G/ UHQ HG&XPDOK  $IWHU HDFK 3& LQWURGXFHV KLPVHOI WKH SOD\HUVKRXOG
GN0/0DOHKXPDQ$UL)WU PDNHD%OXIIRU'LSORPDF\FKHFN'&7KH'0PLJKW
 HYHQ FKRRVH WR KDYH WKH 3&V SUHUROO VHYHUDO GV WKHQ
%UHH\D ZDV ERUQ WR WKH IDPLO\ RI 8U RQH RI WKH VPDOOHU VLPSO\DVNZKHWKHUWKH\ZLOOEHXVLQJ%OXIIRU'LSORPDF\
IDUPLQJ IDPLOLHV DPRQJ WKH &XPDOK ,Q HDUO\ DQG UHFRUG WKH DSSURSULDWH PRGLILHU 5HFRUG WKH UHVXOW
DGROHVFHQFH VKH H[KLELWHG VLJQV RI KDYLQJ WKH |EORRG RI XVLQJ '0 $LG  PRGLILHG E\ ZKDWHYHU ERQXV RU
WKH MRWHQ} PHDQLQJ VKH FRXOG 5DJH DV D EDUEDULDQ 7KLV SHQDOWLHVDUHDSSURSULDWHIRUUDFHFODVVDQGLQWURGXFWLRQ
DELOLW\ FRXSOHG ZLWK UHPDUNDEOH ILJKWLQJ VNLOO OHG EXW GR QRW GHFODUH UHVXOWV XQWLO DOO 3&V KDYH EHHQ
&RQQRFKWRLQGXFWKHULQWRKLVHOLWHZDUULRUV6KHTXLFNO\ LQWURGXFHG 3&V WKDW VXFFHHG DUH ZHOFRPHG E\ WKH
URVHWROHDGWKHJURXSJDLQLQJWKHWLWOH6ZRUGRI&XPDOK FKLHIWDLQ DQG DVNHG WR VLW RQ KLV VLGH RI WKH IHDVW WDEOH

+ROHLQWKH:DOO  3DJH
$Q\WKDWVXFFHHGE\RUPRUHDUHDFWXDOO\DVNHGWRWDNH DERXW  OEV +LV VNLQ LV OLJKW EOXH DQG KLV KDLU QDLOV
WKH VHDW WR &RQQRFKV ULJKW DQG WKHQ WR KLV OHIW LI PRUH DQG WHHWK DUH MHW EODFN $ SDLU RI VKRUW LYRU\ KRUQV
WKDQRQHGRHVVRDVIDYRUHGJXHVWV%UHH\DZLOOLQJO\JLYHV SURWUXGH IURP KLV IRUHKHDG +LV H\HV DUH EODFN ZLWK
XS KHU VHDW WR VXFK D SHUVRQ DW &RQQRFKV UHTXHVW 3&V VWULNLQJO\ZKLWHSXSLOV
WKDW IDLO E\  RU OHVV DUH FRQVLGHUHG XQZRUWK\WRVLWZLWK 
WKHFKLHIWDLQVSDUW\7KH\VLWIDFLQJWKHFKLHIWDLQDQGQR )LQ WKH *LDQW 3KRXND KS  VHH $SSHQGL[ $
FODQ PHPEHU ZLOO VLW EHVLGH WKHP ,I D 3& IDLOV E\  RU 0RGLILHG VWDWV /DUJH *LDQW ,QLW  6SG  IW $& 
PRUHKHLVFRQVLGHUHGXQZHOFRPHDWWKHFKLHIWDLQVWDEOH WRXFK  IODWIRRWHG  $WN  PHOHH G ILVW 
DQGLVLJQRUHGE\WKH+LOOPHQ,QDGGLWLRQLIWKLVSHUVRQ
ZDV ERDVWIXO LQ WKHLU LQWURGXFWLRQ %UHH\D ZLOO FKDOOHQJH
WKH SHUVRQ WR D EDWWOH RI KRQRU &RQQRFK ZLOO GHFODUH
KRZHYHUWKDWVXFKDFKDOOHQJHFDQQRWEHDQVZHUHGXQWLO
DIWHUWKHWHVWVDUHFRPSOHWHG,IDQ\3&XVHV%OXIILQVWHDG
RI 'LSORPDF\ *HYURJ PDNHV DQ RSSRVHG 6HQVH 0RWLYH
UDQJHGGURFN6$UHDFK645HJHQHUDWLRQ65
QDWXUDOLQYLVLELOLW\'DUNYLVLRQVKDSHFKDQJH)RUW
5HI:LOO6WU'H[&RQ+HLJKWIW
 6NLOOV DQG )HDWV %OXII  'LVJXLVH  +LGH 
/LVWHQ0RYH6LOHQWO\3LFN3RFNHW'RGJH*UHDW
)RUWLWXGH ,PSURYHG ,QLWLDWLYH 0RELOLW\ 6NLOO )RFXV
FKHFN  DQG LQIRUPV &RQQRFK DQG %UHH\D LI KH %OXII6NLOO
VXVSHFWV DQ\RQH RI O\LQJ ZKLFK FKDQJHV WKH 3&V VWDWXV  5HJHQHUDWLRQ ([ $V DQ RJUH PDJH )LQ WDNHV
WRXQZRUWK\ZKHQFDOFXODWLQJH[SHULHQFH+HDOVRVFDQV QRUPDO GDPDJH IURP ILUH DQG DFLG ,I KH ORVHV D OLPE RU
WKH 3&V IRU PDJLFDO LQWHUIHUHQFH XVLQJ D GHWHFW PDJLF ERG\ SDUW KH FDQ UHDWWDFK LW E\ KROGLQJ WKH VHYHUHG
VSHOO PHPEHU WR WKH VWXPS 5HDWWDFKPHQW WDNHV  PLQXWH ,I
 WKH KHDG RU RWKHU YLWDO RUJDQ LV VHYHUHG LW PXVW EH
7UHDVXUH1RQHDYDLODEOH UHDWWDFKHG ZLWKLQ  PLQXWHV RU )LQ GLHV +H FDQQRW
 UHJURZORVWERG\SDUWV
'HYHORSPHQW 3&V WKDW SURYRNH YLROHQFH ZLOO IDFH WKH  1DWXUDO ,QYLVLELOLW\ 6X )LQ UHPDLQV LQYLVLEOH HYHQ
ZUDWKRIWKHHQWLUH&XPDOK&ODQKROG&RQQRFKZLOOQRW ZKHQ KH DWWDFNV 7KLV DELOLW\ LV FRQVWDQW EXW )LQ FDQ
KRZHYHU SHUPLW DQ\ RI KLV FODQ WR DWWDFN XQOHVV D 3& VXSSUHVVRUUHVXPHLWDVDIUHHDFWLRQ
DFWXDOO\SK\VLFDOO\DVVDXOWVD+LOOPDQ6XFKDQDWWDFNZLOO  6KDSHFKDQJH6X)LQFDQVKDSHFKDQJHIRXUWLPHVSHU
OHDGWRLPPHGLDWHIDLOXUHRIWKHPLVVLRQDQGSRVVLEO\WKH GD\ DV WKH VSHOO FDVW E\ D OHYHO  VRUFHUHU +RZHYHU KH
GHDWK RI WKH RIIHQGLQJ 3&V XQOHVV WKH\ FDQ ILQG VRPH FDQQRW DVVXPH D IRUP ELJJHU WKDQ /DUJH DQG FDQQRW
EHOLHYDEOH PHDQV RI GHIHDWLQJ RYHU  DQJU\ +LOOPHQ DVVXPH LQFRUSRUHDO IRUPV )LQ JDLQV WKH H[WUDRUGLQDU\
+RVWLOH3&VWKDWGRQRWDFWXDOO\DWWDFNZLOOEHWUHDWHGDVLI DELOLWLHVRIKLVQHZIRUPZKLOHNHHSLQJKLVRZQ+HDOVR
WKH\IDLOHGWKHUHDFWLRQFKHFNE\PRUHWKDQ JDLQVWKHW\SHRIWKHQHZIRUPIRUH[DPSOHGUDJRQRU
PDJLFDO EHDVW LQ SODFH RI KLV RZQ 7KH QHZ IRUP GRHV
 QRWGLVRULHQW)LQ3DUWVRIWKHSKRXNDVERG\RUSLHFHVRI
HTXLSPHQWWKDWDUHVHSDUDWHGIURPLWGRQRWUHYHUWWRWKHLU
(1&2817(5 RULJLQDOIRUPV)LQFDQEHFRPHMXVWDERXWDQ\WKLQJKHLV
<RXUDFHPDGO\WRWKHQRUWKWKURXJKWKHOLJKWO\IRUHVWHGKLOOVLGH IDPLOLDU ZLWK 7KH SKRXND JHWV  RQ 'LVJXLVH FKHFNV
IROORZLQJ WKH FKLHIWDLQ DV KH GHIWO\ JXLGHV KLV ZKLWH FKDUJHU ZKHQXVLQJWKLVDELOLW\
WKURXJK WKH WUHHV 7KH EULJKW OLJKW RI D QHDUIXOO PRRQ 
LOOXPLQDWHV WKH VORSLQJ WHUUDLQ JOHDPLQJ RII WKH SROLVKHG VWHHO 3L[LHV&56PDOO)H\+'GKS,QLW6SG
KHOPVDQGVSHDUVRIWKH+LOOPHQ7KHQDVTXLFNO\DV\RXEHJDQ  IW IO\  IW JRRG $&  WRXFK  IODWIRRWHG 
WKLVIOLJKWLWHQGV7KHFKLHIWDLQUHLQVKLVKRUVHDWWKHWUHHOLQH $WN  PHOHH G GDJJHU  UDQJHG G FRPSRVLWH
RYHUORRNLQJDVPDOOFOHDULQJEHORZ$URXJKURFNZDOODERXW
IHHWKLJKKDVEHHQHUHFWHGLQWKHFOHDULQJZLWKDVLPSOHZRRGHQ
EDUULFDGH DV D JDWH{DSSDUHQWO\ WR NHHS OLYHVWRFN IURP
ZDQGHULQJ DZD\ 6PDOO EXVKHV GRW WKH LQVLGH RI WKHIDUP\DUG
LQWHUVSHUVHG ZLWK WDOO JUDVV 2Q WKH IDU VLGH URXJKO\  \DUGV
VKRUWERZ6$6SHOO/LNH$ELOLWLHV6SHFLDO$UURZV6465
 QDWXUDO LQYLVLELOLW\ $/ 1* 69 )RUW  5HI  :LOO
6WU'H[&RQ,QW:LV&KD+HLJKW
IW
 6NLOOVDQG)HDWV%OXII&RQFHQWUDWLRQ&UDIWDQ\
DZD\\RXVHHWKHFRQLFDOWKDWFKHGURRIRIDKRXVHQRZEXUQLQJ RQH  (VFDSH $UWLVW  +HDO  +LGH  /LVWHQ 
ZLWKDJUHHQLVKILUH<RXFDQDOVRPDNHRXWDODUJHKXPDQRLG 0RYH 6LOHQWO\  5LGH  6HDUFK  6HQVH 0RWLYH 
ILJXUH SUREDEO\  IHHW WDOO GUDJJLQJ D ERG\ IURP WKH KRXVH 6SRW  'RGJH 3RLQW %ODQN 6KRW 5DSLG 6KRW :HDSRQ
WRZDUGDODUJHFUDWH7KHPRQVWHUOLIWVLWVKHDGLQ\RXUGLUHFWLRQ )LQHVVHGDJJHU:HDSRQ)RFXVVKRUWERZ
DSSDUHQWO\KHDULQJ\RXUDSSURDFK  1DWXUDO ,QYLVLELOLW\ 6X $ SL[LH UHPDLQV LQYLVLEOH
 |<RX PXVW GHIHDW WKDW FUHDWXUH| VWDWHV WKH FKLHIWDLQ LQ D HYHQZKHQLWDWWDFNV7KLVDELOLW\LVFRQVWDQWEXWWKHSL[LH
FROGWRQH|%HZDUQHGLWILJKWVZLWKPDJLFDVZHOODVVWUHQJWK FDQVXSSUHVVRUUHVXPHLWDVDIUHHDFWLRQ
<RXVKRXOGPDNHDOOKDVWHDVLWZLOOOLNHO\IOHHQRZWKDWLWKDVD  6SHOO/LNH $ELOLWLHV GD\FRQIXVLRQ WKH SL[LH PXVW
PHDO$QGWDNHFDUHQRWWRKDUPWKHERG\RIWKHIDOOHQ+LOOPDQ WRXFK WKH WDUJHW GDQFLQJ OLJKWV GHWHFW FKDRV GHWHFW JRRG
DVLWLVGLVKRQRUDEOHWRGHVHFUDWHWKHERGLHVRIWKHGHDG1RZJR GHWHFW HYLO GHWHFW ODZ GHWHFW WKRXJKWV GLVSHO PDJLF HQWDQJOH
IRUWKDQGVKRZPHWKHVWUHQJWKRIWKH<HRPDQU\} SHUPDQHQWLPDJHYLVXDODQGDXGLWRU\HOHPHQWVRQO\DQG
 SRO\PRUSK VHOI 7KHVH DELOLWLHV DUH DV WKH VSHOOV FDVW E\ DQ
&UHDWXUHV 7KLV |JLDQW} LV DFWXDOO\ )LQ DJDLQ WKLV WLPH LQ WKOHYHOVRUFHUHUVDYH'&VSHOOOHYHO
WKH IRUP RI DQ RJUH PDJH +H LV  IHHW WDOO DQG ZHLJKV

+ROHLQWKH:DOO  3DJH
 6SHFLDO $UURZV ([ 3L[LHV VRPHWLPHV HPSOR\ KLP LQ PHOHH DW ZKLFK WLPH KLV ERG\ VHHPV WR
DUURZVWKDWGHDOQRGDPDJHEXWFDQHUDVHPHPRU\RUSXWD GLVLQWHJUDWH WKH ILQDO SHUPDQHQWLPDJH FRXSOHG ZLWK )LQ
FUHDWXUHWRVOHHS DVVXPLQJWKHVKDSHRIDELUGWXUQLQJLQYLVLEOHDQGIO\LQJ
 0HPRU\ /RVV $Q RSSRQHQW VWUXFN E\ WKH DUURZ VWUDLJKWXS
PXVW VXFFHHG DW D )RUWLWXGH VDYH '&  RU ORVH DOO
PHPRU\ 7KH VXEMHFW UHWDLQV VNLOOV ODQJXDJHV DQG FODVV
DELOLWLHV EXW IRUJHWV HYHU\WKLQJ HOVH XQWLO KH RU VKH
UHFHLYHV D KHDO VSHOO RU PHPRU\ UHVWRUDWLRQ ZLWK OLPLWHG
ZLVKZLVKRUPLUDFOH
 6OHHS$Q\RSSRQHQWVWUXFNE\WKHDUURZUHJDUGOHVV

7UHDVXUH1RQH7KHKRXVHLVILOOHGZLWKEURNHQIXUQLWXUH
DOWKRXJK WKH 3&V ZLOO EH JLYHQ OLWWOH WLPHWRHYHQQRWLFH
WKDWPXFKOHVVVHDUFKWKHDUHD

'HYHORSPHQW,IWKH'0IHHOVWKDWWKHFRPEDWLVJRLQJWR
RI +LW 'LFH PXVW VXFFHHGDWD)RUWLWXGHVDYH'&RU HDV\ IRU WKH 3&V IHHO IUHH WR XWLOL]H PRUH RI WKH SL[LHV
EHDIIHFWHGDVWKRXJKE\DVOHHSVSHOO DELOLWLHV 'DQFLQJ OLJKWV GLVSHO PDJLF FRQIXVLRQ DQG VOHHS
 DUURZV FDQ DOO SURYLGH PRUH RI D FKDOOHQJH WR SRZHUIXO
7DFWLFV)LQVSXUSRVHLVWRIRUFHWKH3&VWRFRQIURQWKLP SDUWLHV
LQ PHOHH FRPEDW DQG WKXV SURYH WKHLU FRXUDJH +LV  ,IWKH3&VKDYHSUHYLRXVO\GHWHFWHGWKHLQYLVLEOHIH\
LQYLVLEOH SL[LH FRPSDQLRQV DUH DJDLQ ZLWK KLP KHOSLQJ DQG )LQ ZDV XQDEOH WR UHPRYH WKH LWHP DOORZLQJ WKLV
IXUWKHUWKHUXVHE\XVLQJWKHLUVSHOOOLNHDELOLWLHVWRFUHDWH GHWHFWLRQWKUHHSL[LHVZLOOXVHWKHLUSRO\PRUSKVHOIDELOLW\
WKHJLDQWV|PDJLF}7RSUHSDUHIRUWKHEDWWOH)LQGUDQND WRDVVXPHWKHIRUPRIELUGVUDWKHUWKDQWXUQLQJLQYLVLEOH
SRWLRQRISURWHFWLRQIURPDUURZV7KHSRWLRQVHIIHFWVDUHDVD ,IWKH3&VKDYHVRPHDELOLW\WRVHH)LQVWUXHIRUPDVZLWK
6RU GXUDWLRQ  PLQXWHV GDPDJH UHGXFWLRQ  DWUXHVHHLQJVSHOODQG)LQZDVDJDLQXQDEOHWRQHJDWHWKLV
DJDLQVWUDQJHGZHDSRQVSUHYHQWVDWRWDORISRLQWVRI DELOLW\ WKLV HQFRXQWHU ZLOO QRW RFFXU &RQQRFK ZLOO WDNH
GDPDJH EHIRUH EHLQJ GLVFKDUJHG :LWK WKLV VSHOO LQ WKHSDUW\GLUHFWO\WRWKHEDUURZPRXQGDQG(QFRXQWHU
HIIHFW KH ZLOO SOXFN DUURZV DQG VXFK IURP KLV ERG\ 7KH '0 PXVW WKHQ SDUDSKUDVH (QFRXQWHU  WR
ODXJKLQJ ,I 3&V FKRRVH WR FDVW VSHOOV DW )LQ WKH\ PXVW DFFRPPRGDWHWKLVVLWXDWLRQ
RYHUFRPHERWKKLV65DQGKLVVDYHV  ,I WKH 3&V GR QRW DWWHPSW WR HQJDJH LQ PHOHH IRU
 PRUHWKDQHLJKWURXQGVIRULQVWDQFHFRQVWDQWO\PRYLQJ
7KHUH DUH IRXU SL[LHV LQ DOO RQH KDV DOUHDG\ XVHG LWV WRZDUGWKH|JLDQW}RUEHLQJFDXJKWLQWKHHQWDQJOHDUHDEXW
LOOXVRU\ SRZHU WR FUHDWHWKHJUHHQILUHRQWKHURRIRIWKH VWLOO DFWLYHO\ VHHNLQJ WR HQJDJH WKH |JLDQW} FRXQW DV
KRXVH $QRWKHU KDV XVHG LWV SRO\PRUSK VHOI DELOLW\ WR DWWHPSWLQJ WR HQJDJH LQ PHOHH )LQ VNLSV WR WKH ILQDO
DVVXPHWKHIRUPRIWKHERG\WKDW)LQLVGUDJJLQJ$VVRRQ VLJQDOEXWDSSHDUVWRGLVDSSHDUZLWKWKHERG\UDWKHUWKDQ
DV FRPEDW EHJLQV LH ZKHQ LQLWLDWLYH LV GHWHUPLQHG WKH GLVLQWHJUDWLQJ &RQQRFK VHYHUHO\ FKDVWLVHV WKH FRZDUGO\
3&VHQWHUDQ\DUHDVRIWKHFOHDULQJLQVLGHWKHVWRQHZDOOV 3&V IRU GLVUHJDUGLQJ KLV DGYLFH WR PDNH KDVWH DQG
DQGLWFRPHVWR)LQVURXQG)LQUDLVHVKLVULJKWKDQGDQG DOORZLQJWKHPRQVWHUWRHVFDSHZLWKRXWDILJKW7KH\ZLOO
SRLQWV DW WKH SDUW\ 7KLV LV D VLJQDO IRU D SL[LH WR XVH LWV WKXVIDLOWKHWHVWRIFRXUDJH
SHUPDQHQW LPDJH DELOLW\ WR PDNH D MHW RI JUHHQ ILUH VKRRW
IURP)LQVKDQGWRZDUGWKH3&V7KH|ILUH}ZKLFKWUDYHOV 
D PD[LPXP RI  IHHW ZLOO QRW VWULNH DQ\ 3& LQVWHDG
FDWFKLQJ RQ D EXVK WKDW EXUVWV LQWR IODPH )LQ GRHVQW (1&2817(5
ZDQW WKH 3&V WR DFWXDOO\ WRXFK WKH ILUH DV LW KDV QR $VVXPLQJ WKH 3&V HQJDJH )LQ LQ PHOHH UHDG WKH
WKHUPDOHIIHFWDQGPD\WKXVUHYHDOKLVWULFN IROORZLQJDIWHU)LQGLVDSSHDUV
 $SSHDULQJWREHIUXVWUDWHGE\KLVPLVV)LQUDLVHVKLV 
OHIWKDQGLQWKHDLURQURXQGWZRVLJQDOLQJWKHSL[LHVWR &RQQRFK DQG KLV ZDUULRUV HPHUJH IURP WKH WUHHV DSSDUHQWO\
XVHWKHLUHQWDQJOHDELOLW\UDQJHWRWUDSDVPDQ\3&V LPSUHVVHGE\\RXUEDWWOH
DV SRVVLEOH ,I WKH 3&V DUH LQ WZR RU PRUH JURXSV PRUH  $VKLVZDUULRUVVHDUFKWKHDUHD&RQQRFKVSHDNV|<RXGLG
SL[LHV ZLOO XVH WKHLU DELOLW\ WKXV FUHDWLQJ XS WR IRXU ZHOOWRULGXVRIWKDWPHGGOHVRPHEHDVWEXW,DPDIUDLGWKHWHVW
HQWDQJOHDUHDVHDFKZLWKDUDGLXVVSUHDG RI\RXUVWUHQJWKLVQRW\HWFRPSOHWH7KHERG\RID+LOOPDQQRZ
 2Q URXQG WKUHH )LQ IOLSV WKH FUDWH RYHU SURYLGLQJ OLHVZLWKLQLWVKRPHIRRGIRUHYLOVKXQJHU6XFKDGLVKRQRUDEOH
 FRYHU ZLWK D  FRYHU ERQXV WR $& DQG D  FRYHU IDWH FDQQRW EH DOORZHG ,W ODLUV LQ RQH RI WKH DQFLHQW PRXQGV
5HIOH[ VDYH ERQXV DQG EHJLQV KXUOLQJ LWV FRQWHQWV ILVW QHDUKHUH\RXPXVWJDLQHQWUDQFHWRWKHPRXQGDQGUHWXUQWKH
VL]HG URFNV UDQJH LQFUHPHQW RI  IHHW DW DQ\ 3&V QRW ERG\WRRXU&ODQKROGIRUDSURSHUIXQHUDO%HZDUHIRULWLVVDLG
WUDSSHGE\WKHVSHOOV
 :KHQ WKH 3&V PRYH WR HQJDJH )LQ LQ PHOHH KH
UDLVHV KLV OHIW KDQG WKLV LV WKH ODVW VLJQDO IRU WKH SL[LHV
$JDLQXVLQJDSHUPDQHQWLPDJHRQHSL[LHFUHDWHVDGLVFRI
JORZLQJ JUHHQ OLJKW XQGHU WKH |ERG\} ZKLFK GLVDSSHDUV
WKH SL[LH WXUQV LQYLVLEOH UHVXPHV LWV QDWXUDO IRUP DQG
WKDWIHDUVRPHUHYHQDQWVZKRVHPHUHWRXFKGUDLQVWKHOLIHIURPD
PDQ JXDUG WKLV FXUVHG PRXQG $Q\ ERGLHV RI VXFK FUHDWXUHV
VKRXOGDOVREHEURXJKWWRXVWKDWWKH\PD\QRORQJHUSODJXHWKLV
SODFH $QG UHPHPEHU WKH PRXQGV DUH VDFUHG WR P\ SHRSOHWKH
UHVWLQJ SODFH RI WKH $QFLHQWV 'LVWXUE OLWWOH LI DQ\WKLQJ
ZLWKLQ{WKH KDOOV RI WKH $QFLHQWV DUH QRW DOZD\V ZKDW WKH\
IOLHVVWUDLJKWXS)LQKROGVKLVKDQGLQWKHDLUVHHPLQJWR VHHP 7KH PRXQG OLHV WR WKH ZHVW LQ D SURPLQHQW FOHDULQJ
FRQFHQWUDWH KDUG RQ WKH |VSHOO} KH LV LQ UHDOLW\ UHDG\LQJ VXUURXQGHGE\DFLUFOHRIVWRQHV7DNHWKHVWRQHVDVDOHVVRQWKH
DQ DFWLRQ WR XVH KLV VKDSHFKDQJH DELOLW\ ZKHQ HQJDJHG E\ $QFLHQWV NQHZ ZHOO WKH SRZHU RI VKDSH DQG IRUP *HYURJ ZLOO
WKH ILUVW PHOHH DWWDFN ORQJ HQRXJK IRU D 3& WR HQJDJH

+ROHLQWKH:DOO  3DJH
KHDODQ\ZRXQGHGWKDWUHTXLUHLWEXW,FDQSURYLGHQRIXUWKHU FKHFN '&  WR UHPHPEHU VHHLQJ VLPLODU SLOODUV DORQJ
DLG} WKH URDG WR WKH &XPDOK KLOOIRUW ,I WKLV LV QRW HQRXJK
 DOORZ HDFK 3& WKDW VXFFHVVIXOO\ UHPHPEHUV WKH SLOODUV
&RQQRFKVSHDNVWKHWUXWKEXWWKHERG\DQGHYLOKHUHIHUV DQRWKHU ,QWHOOLJHQFH FKHFN '&  WR UHPHPEHU WKDW
WRLVDFWXDOO\5HXQD+LOOPDQIURPDJHVSDVWWKDWHQWHUHG 5LDQH WRXFKHG D V\PERO RQ HDFK SLOODU $ ILQDO
WKH EDUURZ PRXQG DQG VXFFXPEHG WR D PDJLFDO WUDS ,QWHOOLJHQFH FKHFN '&  ZLOO UHFDOO WKH ZRUGV RI WKH
ZKLFK OHG WR KLV UHVXUUHFWLRQ DV D ZLJKW $IWHU *HYURJ FKLHIWDLQ|7DNHWKHVWRQHVDVDOHVVRQWKH$QFLHQWVNQHZ
KHDOV DQ\ ZRXQGHG DPRQJ WKH SDUW\ &RQQRFK DQG KLV ZHOOWKHSRZHURIVKDSHDQGIRUP}
ZDUULRUV PRXQW WKHLU KRUVHV DQG ULGH EDFN LQ WKH 
GLUHFWLRQRIWKHKLOOIRUW7KHEDUURZPRXQGWKDW&RQQRFK 
GLUHFWVWKHSDUW\WRZDUGLVDERXWWKLUW\PLQXWHVULGHWRWKH
ZHVW (1&2817(5
 $V\RXHQWHUWKHKROH\RXDUHVXUSULVHGWRILQGWKHLQWHULRUZHOO
<RXQRWLFHWKHODQGEHJLQVWRIODWWHQDQGWKHIRUHVWWKLQVDV\RX OLW{DVRIW\HOORZOLJKWVHHPVWRIDOOIURPWKHFHLOLQJ(YHQPRUH
ULGH IXUWKHU ZHVW 6RRQ WKH WUHHV VWRS DOWRJHWKHU DQG \RX VHH VXUSULVLQJWKHFHLOLQJLVPXFKKLJKHUWKDQLWFRXOGSRVVLEO\EH
EHIRUH\RXDPRXQGRIXQHYHQVWRQHVULVLQJIHHWLQWRWKHDLU ,QGHHGWKHHQWLUHURRPLVPXFKODUJHUWKDQWKHPRXQG\RXMXVW
WKH SDOH PRRQOLJKW WKURZLQJ ORQJ VKDGRZV DFURVV LWV VXUIDFH HQWHUHGDFLUFXODUURRPDWOHDVWIHHWDFURVV,QVWHDGRIURXJK
5RXJKKHZQ SLOODUV DUH HYHQO\ VSDFHG DURXQG WKH PRXQG \RX URFN ZDOOV \RX ILQG ZKLWH VWRQH ZLWK EDVUHOLHI RI IRUHVW VFHQHV
FRXQWDWOHDVWILYHHDFKVWDQGLQJDERXWIHHWWDOO7KHUHGRHVQRW FRYHULQJWKHHQWLUHVXUIDFH)RXUSLOODUVRIWKHVDPHVWRQHVWUHWFK
DSSHDUWREHDQ\GRRUZD\RUHQWU\RIDQ\NLQG WR WKH FHLOLQJ FDUYHG LQ WKH VKDSH RI RDNV DQG PDSOHV $Q
 DUFKZD\ IRUPHG IURP WKHFXUOLQJKRUQVRIDJLDQWVWDJVWDQGV
7DFWLFV 7KHUH DUH DFWXDOO\  SLOODUV LQ DOO &DUHIXO GLUHFWO\ RSSRVLWH WKH SRUWDO \RX MXVW HQWHUHG ZKLFK LV VLPSO\ D
H[DPLQDWLRQ 6HDUFK FKHFN '&  UHYHDOV D ZHDWKHUHG EODFNFLUFOHKDQJLQJRQWKHZDOOOLNHDWDSHVWU\$ZLQHFRORUHG
JHRPHWULF SDWWHUQ HWFKHG LQWR WKH VXUIDFH RI HDFK SLOODU GUDSHU\KDQJVLQWKHDUFKZD\EORFNLQJ\RXUYLHZRIZKDWHYHU
IDFLQJ WKH PRXQG 7KH SDWWHUQV VWDUW DW WKUHHVLGHG D OLHVEH\RQG
WULDQJOHDQGJRWKURXJKWRHLJKWVLGHGDQRFWDJRQ7KH 
VKDSHV DUH QHYHU UHSHDWHG RQ D SLOODU EXW DUH UDQGRPO\ 7KHPRXQGLVDQHQWUDQFHZD\WRRQHRIWKHIDEOHG)DGLQJ
SODFHGVRWKH3&VPLJKWILQGDWULDQJOHRQWKHILUVWSLOODU /DQGVRI2HUWK7KHDLULQVLGHWKHPRXQGLVIUHVKDQGLI
WKH\ H[DPLQH DQ RFWDJRQ RQ WKH QH[W WKHQ D SHQWDJRQ WKH 3&V VWRS WR OLVWHQ WKH\ FDQ KHDU WKH IDLQW VRXQG RI D
DQGVRRQ+RZHYHURQHSLOODUWKHRQHIXUWKHVWIURPWKH VPDOOEURRNIORZLQJRYHUURFNVDQGGLVWDQWELUGVFKLUSLQJ
SDUW\DVWKH\HQWHUWKHFOHDULQJEORFNHGIURPYLHZE\WKH 7KH IR\HU FRQWDLQV QRWKLQJ EH\RQG WKH SLOODUV DQG WKH
EDUURZPRXQG KDV D SHUIHFW FLUFOH FDUYHG LQWR LW FDUYLQJV $V WKH ILUVW 3& HQWHUV RU SHHUV LQWR WKH VHFRQG
7RXFKLQJWKLVFLUFOHFDXVHVOLJKWDVDOLJKWVSHOOWRVKLQH
IURPWKHSLOODULQDUDGLXV7KHV\PEROWKHQGLVDSSHDUV
IURP WKH SLOODU DQG DOO RI WKH V\PEROV UDQGRPO\ FKDQJH
WKLV WLPH UDQJLQJ IURP WKUHH WR VHYHQVLGHG 7KH WKLUG
SLOODU WR WKH OHIW RI WKH QRZVKLQLQJ SLOODU QRZ KDV WKH
FLUFOH V\PERO 7RXFKLQJ WKLV V\PERO DJDLQ FDXVHV D OLJKW
WR VKLQH IURP WKH SLOODU DQG WKH V\PEROV WR UHDUUDQJH
URRPUHDGWKHIROORZLQJ

%H\RQG WKH DUFKZD\ DQ HYHQ ODUJHU URRP VWUHWFKHV RXW DJDLQ
SHUIHFWO\ FLUFXODU LQ VKDSH 7KHZDOOVDUHVLPLODUO\FDUYHGZLWK
VFHQHV RI QDWXUH DQG PDVVLYH WUHHSLOODUV QHDUO\ WZR GR]HQ
VWUHWFK WR WKH KLJK FHLOLQJ WR IRUP D FLUFOH RI WUHHV 7KLV URRP
KRZHYHU LV YHU\ ZHOO IXUQLVKHG /DUJH WDEOHV DUH VSDFHG HYHQO\
QRZ UDQJLQJ WKUHH WR VL[VLGHG ZLWK WKH FLUFOH DJDLQ
DSSHDULQJ WKUHH SLOODUV WR WKH OHIW 7KLV SDWWHUQ UHSHDWV
XQWLODOOVHYHQSLOODUVDUHOLWRUXQWLOVRPHRQHWRXFKHVDQ\
RWKHUV\PERODWZKLFKWLPHDOOOLWSLOODUVJRGDUNDQGWKH
V\PEROVUDQGRPO\UHVHWWKLVDOVRRFFXUVLIPRUHWKDQWHQ
WKURXJKRXW WKH URRP HDFK DSSDUHQWO\ FDUYHG IURP D VLQJOH
JDUJDQWXDQWUHH7KHFKDLUVDURXQGHDFKWDEOHDUHFDUYHGLQWKH
IRUP RI DQLPDOV DQG SODWHV RI JROG DQG VLOYHU VLW UHDG\ IRU D
PHDODFU\VWDOJREOHWE\HDFK$V\RXVXUYH\WKHURRP\RXUH\HV
ILQDOO\FRPHWRUHVWRQWKHODUJHVWWDEOHVLWWLQJLQWKHPLGGOHRI
PLQXWHV SDVV EHWZHHQ DQ\ WZR V\PEROV EHLQJ WRXFKHG WKH FLUFOH RI |WUHHV} $SSDUHQWO\ WKH KHDG WDEOH LW KDV FKDLUV
'0V $LG   SURYLGHV D GLDJUDP RI WKH LQLWLDO RUGHU FDUYHGLQWKHIRUPRIXQLFRUQVSHJDVLDQGRWKHUPDJLFDOEHDVWV
QHFHVVDU\WRDFWLYDWHWKHSLOODUV:KHQWKHVHYHQWKSLOODU 6HDWHGLQWKHODUJHVWRIWKHVHFKDLUVFDUYHGLQWKHIRUPRIDJUHDW
LVOLWUHDGWKHIROORZLQJ GUDJRQ\RXVHHZKDWDSSHDUVWREHDPDQZLWKKLVKHDGUHVWLQJ
 LQ KLV KDQGV DQG KLV HOERZV SURSSHG RQ WKH WDEOH 7KH RQO\
7KH VRIW \HOORZ OLJKW VKLQLQJ IURP HDFK SLOODU QRZ OLJKWV WKH IHDWXUH\RXFDQPDNHRXWLVKLVORQJKDLUZKLFKLVEODFNEXWUXQ
HQWLUHPRXQGGLVSHOOLQJWKHVKDGRZVWKDWRQFHSOD\HGDFURVVLWV WKURXJKZLWKVWUHDNVRIZKLWHDQGJUD\
VXUIDFH,QWKLVQHZOLJKW\RXFDQVHHDSHUIHFWO\URXQGKROHLQ 
WKHZDOOSUREDEO\VL[IHHWLQGLDPHWHUOHDGLQJLQWRWKHPRXQG 7KH |PDQ} LV DFWXDOO\ D ZLJKW +H VLWV PRWLRQOHVV XQWLO
7KHOLJKWKRZHYHUGRHVQRWSDVVEH\RQGWKHVXUIDFHRIWKHKROH DSSURDFKHGE\D3&DSSHDULQJQRWWRKHDUDQ\WKLQJWKH\
OHDYLQJWKHFRQWHQWVDP\VWHU\ PLJKW VD\ RU GR ,I WKH SDUW\ LV $3/  RU  WKH RWKHU
 ZLJKWV UHDFW LQ D VLPLODU IDVKLRQ '0V $LG  OLVWV WKH
7UHDVXUH1RQH SRVLWLRQ RI 5HXQ DQG DQ\ RWKHU ZLJKWV ,I D 3& ORRNV
 FORVHO\ EHIRUH DSSURDFKLQJ 6SRW '&  UHDG WKH
'HYHORSPHQW ,I WKH 3&V IDLO WR PDNH DQ\ KHDGZD\ RQ IROORZLQJ
RSHQLQJ WKH PRXQG KDYH HDFK PDNH DQ ,QWHOOLJHQFH 

+ROHLQWKH:DOO  3DJH
<RXQRWLFHWKHFORWKLQJZRUQE\WKHPDQLVYHU\VLPLODUWRWKDW 
ZRUQ E\ WKH +LOOPHQ RI &XPDOK +LV ILQJHUQDLOV VHHP $3/(/
H[FHSWLRQDOO\ ORQJ DQG KLV VNLQ KDV WKHSDOORURIDSHUVRQWKDW
KDVQRWVHHQWKHVXQLQ\HDUV 5HXQU1HG5RQDQG5 QQHG&XPDOKGN
 0/:LJKW&50HGLXP6L]H8QGHDG+'GKS
6KRUW RI DWWDFNLQJ WKH FUHDWXUH ZLWK UDQJHG ZHDSRQV RU ,QLW6SGIW$&WRXFKIODWIRRWHG$WN
VSHOOV DEVROXWHO\ QRWKLQJ ZLOO FDXVH LW WR UHDFW ,I WKLV  PHOHH G DQG HQHUJ\ GUDLQ VODP 6$ (QHUJ\
RFFXUVWKHFUHDWXUHVLPPHGLDWHO\OHDSVWRDWWDFN 'UDLQ&UHDWH6SDZQ648QGHDG$//(69)RUW5HI
 :KHQ DQ\RQH DSSURDFKHV ZLWKLQ  IHHW UHDG WKH :LOO6WU'H[&RQz,QW:LV&KD
IROORZLQJ +HLJKWIW
  6NLOOV DQG )HDWV &OLPE  -XPS  /LVWHQ  0RYH
$V\RXDSSURDFKWKHPDQILQDOO\VWLUV+LVFORWKLQJLVVLPLODUWR 6LOHQWO\   UDFLDO ERQXV 6HDUFK  6SRW  %OLQG
WKDWZRUQE\WKH&XPDOKWKRXJKLWVKRZVFRQVLGHUDEOHVLJQVRI )LJKW
DJLQJ 3DOH ZKLWH IOHVK FDQEHVHHQXQGHUQHDWK$VKHUXEVKLV  (QHUJ\ 'UDLQ 6X /LYLQJ FUHDWXUHV KLW E\ D ZLJKWV
KDQGVWRJHWKHUORQJILQJHUQDLOVDOPRVWFODZOLNHVKLQHZLWKD VODPDWWDFNUHFHLYHRQHQHJDWLYHOHYHO7KH)RUWLWXGHVDYH
EODFN OXVWHU <RX VHH QHHGOHOLNH WHHWK OLQLQJ KLV PRXWK QRZ WRUHPRYHWKHQHJDWLYHOHYHOKDVD'&RI
FUDFNHGLQDFUXHOVPLOH+LVH\HVEOD]LQJZLWKPDOLFHVWDUHDW
\RX DV KH UDVSV |+DLO FXULRXV WUDYHOHUV DQG ZHOO PHW , DP
5HXQHG5RQDQHG&XPDOKFKLHIWDLQVVRQDQGORUGRIWKLVJUHDW
KDOO<RXDUHZHOFRPHWRP\IHDVW}
 DELOLWLHVWKH\KDGLQOLIH
:LWK WKLV LQWURGXFWLRQ WKH ZLJKW OHDSV WR DWWDFN WKH
QHDUHVW3&FKDUJLQJLIQHFHVVDU\KHKDVUHDGLHGDQDFWLRQ
WR DWWDFN ZKHQ DQ\RQH DSSURDFKHV ZLWKLQ  IHHW DQG
XVHVDIUHHDFWLRQWRVSHDNGXULQJWKHDWWDFN7KURXJKRXW
WKH ILJKW WKH FUHDWXUH EDEEOHV WR LWVHOI DOWHUQDWHO\
 &UHDWH 6SDZQ 6X $Q\ KXPDQRLG VODLQ E\ D ZLJKW
EHFRPHV D ZLJKW LQ G URXQGV 6SDZQ DUH XQGHU WKH
FRPPDQG RI WKH ZLJKW WKDW FUHDWHG WKHP DQG UHPDLQ
HQVODYHG XQWLO LWV GHDWK 7KH\ GR QRW SRVVHVV DQ\ RI WKH
 8QGHDG ,PPXQH WR PLQGLQIOXHQFLQJ HIIHFWV
SRLVRQVOHHSSDUDO\VLVVWXQQLQJDQGGLVHDVH1RWVXEMHFW
WR FULWLFDO KLWV VXEGXDO GDPDJH DELOLW\ GDPDJH HQHUJ\
GUDLQRUGHDWKIURPPDVVLYHGDPDJH

GLVFXVVLQJ LQYDGHUV LQ LWV KRPH DQG JXHVWV WR LWV IHDVW $3/(/
ZLWK QR RQH LQ SDUWLFXODU ,W ZLOO ILJKW XQWLO XWWHUO\
GHVWUR\HG 5HXQU1HG5RQDQG5 QQHG&XPDOKGN
 $IWHUWKHEDWWOHLVRYHUUHDGWKHIROORZLQJ 0/:LJKW&50HGLXP6L]H8QGHDG+'GKS
 ,QLW6SGIW$&WRXFKIODWIRRWHG$WN
:LWKWKHFUHDWXUHVGLVSDWFKHG\RXQRZVHHDERG\O\LQJLQWKH  PHOHH G DQG HQHUJ\ GUDLQ VODP 6$ (QHUJ\
VKDGRZV EHKLQG D SLOODU{WKH ERG\ IURP WKH FOHDULQJ %HKLQG 'UDLQ&UHDWH6SDZQ648QGHDG$//(69)RUW5HI
WKH ERG\ SXVKHG XS DJDLQVW WKH ZDOO LV D ODUJH ZRRGHQ FKHVW :LOO6WU'H[&RQz,QW:LV&KD
ERXQGZLWKPHWDOEDQGV7KHKLQJHGOLGKDVQRDSSDUHQWORFN +HLJKWIW
  6NLOOV DQG )HDWV &OLPE  -XPS  /LVWHQ  0RYH
7KHERG\LVLQIDFW)LQZKRDUULYHGZHOOEHIRUHWKHSDUW\ 6LOHQWO\   UDFLDO ERQXV 6HDUFK  6SRW  %OLQG
DQG UHPDLQHG LQYLVLEOH WKURXJKRXW WKH EDWWOH DV DQ )LJKW
REVHUYHU ,IWKH3&VFKHFNWKH\ZLOOGLVFRYHUKHLVDOLYH  (QHUJ\ 'UDLQ 6X /LYLQJ FUHDWXUHV KLW E\ D ZLJKWV
EXW )LQ ZLOO QRW |UHJDLQ FRQVFLRXVQHVV} RU UHDFW WR DQ\ VODPDWWDFNUHFHLYHRQHQHJDWLYHOHYHO7KH)RUWLWXGHVDYH
KHDOLQJVSHOOV+HLQWHQGVWRKDYHWKH3&VFDUU\KLPEDFN WRUHPRYHWKHQHJDWLYHOHYHOKDVD'&RI
WR WKH FODQ 7KH FKHVW ZKLFK LV QHLWKHU ORFNHG QRU  &UHDWH 6SDZQ 6X $Q\ KXPDQRLG VODLQ E\ D ZLJKW
WUDSSHG GRHV KDYH D SHUPDQHQW PDJLF PRXWK VSHOO FDVW EHFRPHV D ZLJKW LQ G URXQGV 6SDZQ DUH XQGHU WKH
XSRQLWZKLFKDFWLYDWHVZKHQDQ\QRQIH\WRXFKHVLW FRPPDQG RI WKH ZLJKW WKDW FUHDWHG WKHP DQG UHPDLQ
 HQVODYHG XQWLO LWV GHDWK 7KH\ GR QRW SRVVHVV DQ\ RI WKH
|,GRQWEHORQJWR\RXVRGRQWHYHQWKLQNDERXWRSHQLQJPH, DELOLWLHVWKH\KDGLQOLIH
ZDUQ \RX QRZ DQ XQHQGLQJ FXUVH IDOOV RQ WKH WKLHIWKDWWDNHV  8QGHDG ,PPXQH WR PLQGLQIOXHQFLQJ HIIHFWV
ZKDWLVQRWKLV} SRLVRQVOHHSSDUDO\VLVVWXQQLQJDQGGLVHDVH1RWVXEMHFW
 WR FULWLFDO KLWV VXEGXDO GDPDJH DELOLW\ GDPDJH HQHUJ\
7KHFKHVWZDVLQGHHGWUDSSHGDWRQHWLPHZLWKDQHQHUJ\ GUDLQRUGHDWKIURPPDVVLYHGDPDJH
GUDLQ VSHOO 5HXQ KRZHYHU DFWLYDWHG LW ORQJ DJR DQG 
SHULVKLQJ ZLWK WKH VSHOO ZDV WXUQHG LQWR D ZLJKW ,I WKH $GG  ZLJKWV ZLWK VWDWV DV 5HXQ IURP $3/  KS  
3&VRSHQWKHFKHVWGHVSLWHWKHZDUQLQJWKH\ILQGRQO\DQ VHH0RQVWHU0DQXDOSDJH,QGLFDWHGDVDQGRQWKH
ROGEURNHQEURDGVZRUGDQGDURWWHGOHDWKHUVKLHOG%RWK PDS
LWHPV RQFH EHORQJHG WR 5HXQ ZKR SODFHG WKHP KHUH DV 
KLV |WUHDVXUH} DIWHU ULVLQJ IURP WKH GHDG +H EURNH WKH $3/(/
VZRUG LQ IUXVWUDWLRQ XSRQ GLVFRYHULQJ WKDW KH FRXOG QRW
5HXQU1HG5RQDQG5 QQHG&XPDOKGN
OHDYHWKHPRXQGWKHIH\FORVHGWKHH[LW
0/:LJKW&50HGLXP6L]H8QGHDG+'GKS

,QLW6SGIW$&WRXFKIODWIRRWHG>>
&UHDWXUHV
'H[QDWXUDO@@$WNPHOHHGDQGHQHUJ\GUDLQ

+ROHLQWKH:DOO  3DJH
VODP 6$ (QHUJ\ 'UDLQ &UHDWH 6SDZQ 64 8QGHDG $/
/(69)RUW5HI:LOO6WU'H[&RQz,QW 
:LV&KD+HLJKWIW
 6NLOOV DQG )HDWV &OLPE  -XPS  /LVWHQ  &21&/86,21
0RYH6LOHQWO\UDFLDOERQXV6HDUFK6SRW $V \RX HPHUJH IURP WKH PRXQG \RX DUH DJDLQ VXUSULVHG WKLV
%OLQG)LJKW,PSURYHG,QLWLDWLYH WLPHE\DEULJKWQRRQGD\VXQ%\\RXUEHVWHVWLPDWHVLWVKRXOG
 (QHUJ\ 'UDLQ 6X /LYLQJ FUHDWXUHV KLW E\ D ZLJKWV RQO\EHPRUQLQJ7XUQLQJWRORRNEDFNDWWKHPRXQG\RXVHHWKH
VODPDWWDFNUHFHLYHRQHQHJDWLYHOHYHO7KH)RUWLWXGHVDYH EODFNKROHVORZO\GLVDSSHDULQJ<RXWKHQQRWLFHWKDWWKHFOHDULQJ
WRUHPRYHWKHQHJDWLYHOHYHOKDVD'&RI HPSW\ ZKHQ \RX DUULYHG LV QRZ ILOOHG ZLWK SHRSOH{&ODQ
 &UHDWH 6SDZQ 6X $Q\ KXPDQRLG VODLQ E\ D ZLJKW
EHFRPHV D ZLJKW LQ G URXQGV 6SDZQ DUH XQGHU WKH
FRPPDQG RI WKH ZLJKW WKDW FUHDWHG WKHP DQG UHPDLQ
HQVODYHG XQWLO LWV GHDWK 7KH\ GR QRW SRVVHVV DQ\ RI WKH
DELOLWLHVWKH\KDGLQOLIH
 8QGHDG ,PPXQH WR PLQGLQIOXHQFLQJ HIIHFWV
SRLVRQVOHHSSDUDO\VLVVWXQQLQJDQGGLVHDVH1RWVXEMHFW
WR FULWLFDO KLWV VXEGXDO GDPDJH DELOLW\ GDPDJH HQHUJ\
GUDLQRUGHDWKIURPPDVVLYHGDPDJH
 \RXU UHWXUQ $ IHDVW LV EHLQJ SUHSDUHG HYHQ DV ZH VSHDN WKDW,
$GGZLJKWVZLWKVWDWVDV5HXQIURP$3/KS
VHH0RQVWHU0DQXDOSDJH,QGLFDWHGDVDQG
&XPDOK LV KHUH WR JUHHW \RX &RQQRFK %UHH\D *HYURJ DQG
5LDQHDOOVWHSIURPWKHFURZGWRPHHW\RX
 :LWKDVPLOHRQKLVIDFH&RQQRFKORRNVDW\RX|7KDQNVEH
WR %HRU\ :H WKRXJKW \RX ORVW WR WKH ODQGV RI WKH $QFLHQWV}
6HHLQJ\RXUTXL]]LFDOORRNV&RQQRFKFRQWLQXHV|<RXKDYHEHHQ
JRQHIRUQHDUWZHOYHKRXUVQRZ:KHQ\RXGLGQRWUHWXUQLQD
WLPHO\ PDQQHU ZH FDPH KHUH WR ILQG \RX EXW VDZ RQO\ WKDW
JDSSLQJEODFNKROH+LOOPHQDUHIRUELGGHQWRHQWHUWKHPRXQGV
OHVWWKH\EHFXUVHGWRQHYHUOHDYHDJDLQVRZHFRXOGRQO\ZDLWIRU
PLJKW HQWHUWDLQ \RX DV SURSHU JXHVWV EXW ILUVWw\RX KDYH WKH
ERG\IURPWKHFOHDULQJ"}
RQWKHPDS 
 &RQQRFKSDXVHVH[SHFWDQWO\$VVXPLQJWKH3&VEULQJWKH
 ERG\ &RQQRFK KDV WKHP SODFH LW DW KLV IHHW EHIRUH
7DFWLFV 5HXQ ZKLOH TXLWH PDG IURP VSHQGLQJ PDQ\ FRQWLQXLQJ
ORQHO\ \HDUV LQ WKH EDUURZPRXQG KDV D FXQQLQJ PLQG 
+H GRHV QRW ILJKW EOLQGO\ DQG ZLOO XVH WKH URRP WR LWV $K\HV\RXKDYHUHWXUQHGKLPWRXVWKRXJKWKH&XPDOKZRXOG
DGYDQWDJH OHDSLQJ LW KDV WKH -XPS VNLOO LQVWHDG RI WKH SUREDEO\EHEHWWHURIIKDGKHVWD\HGLQVLGH}:LWKWKDW&RQQRFK
QRUPDO ZLJKWV +LGH VNLOO RQWR WDEOHV WR JDLQ D KHLJKW DQG PDQ\ RI WKRVH JDWKHUHG DURXQG HUXSW LQWR ODXJKWHU
DGYDQWDJH  WR DWWDFN UROOV RU XVLQJ FKDLUV WR EORFN 5HJDLQLQJ KLV FRPSRVXUH &RQQRFK ORRNV DW WKH ERG\ |)LQ
IODQNLQJ DWWDFNV ,W WDUJHWV OLJKWO\ DUPRUHG IRHV ILUVW VKRXOG\RXQRWLQWURGXFH\RXUVHOISURSHUO\WRWKHVHKHURHV"}
VHHNLQJWREULQJWKHPGRZQTXLFNO\DQGKRSHIXOO\DGGD  $V\RXZDWFKWKHERG\VORZO\VWDQGV]RPELHOLNH$ZLGH
VHUYDQW WR LWV UHDOP WKURXJK WKH HQHUJ\ GUDLQ DWWDFN $W VPLOHVSUHDGVDFURVVKLVIDFHDVWKHPDQEHJLQVWRFKDQJHEHIRUH
KLJKHU WLHUV WKH DGGLWLRQDO ZLJKWV DOO VHUYDQWV FUHDWHG \RXU H\HV JURZLQJ ODUJHU 6PDOO LYRU\ KRUQV VSURXW IURP KLV
WKURXJKWKHHQHUJ\GUDLQDWWDFNVLWDVJXHVWVDWWKHKHDG
WDEOHDQGZLOOQRWUHDFWXQWLO5HXQDWWDFNVDWZKLFKWLPH
WKH\DVVDLOWKHQHDUHVW3&$OOVLWZLWKWKHLUIDFHVLQWKHLU
KDQGV DOWKRXJK WKH\ DUH JDUEHG LQ DQ DUUD\ RI FORWKLQJ
VW\OHVIURPDGYHQWXUHUVWRIDUPHUVWRVROGLHUV$OORIWKHLU
KHDG DQG KLV QDLOV WXUQ WR EODFN FODZV 7KH JLDQW IURP WKH
FOHDULQJ QRZ VWDQGV EHIRUH \RX WKH VDPH VPLOH VWLOO SOD\LQJ
DFURVVKLVIDFH(YHQDV\RXUHFRJQL]HWKHJLDQWKLVIRUPDJDLQ
EHJLQV WR FKDQJH WKLV WLPH VKULQNLQJ WR HYHQ VPDOOHU WKDQ D
KXPDQ6RRQWKHJQRPHIURP)UHHPDQV6SHDUWKDW\RXPHWVR
EHORQJLQJV GLVFDUGHG DV XVHOHVVDIWHUWKHLU|GHDWK}ZHUH PDQ\ GD\V DJR VWDQGV EHIRUH \RX VWLOO VPLOLQJ %XW )LQ LV
JDWKHUHGXSE\)LQRYHUWKHGHFDGHV DSSDUHQWO\QRWWKURXJKWKHJQRPHDOVREHJLQVWRJURZVPDOOHU
 VLOYHU IXU VSURXWLQJ DV KLV IDFH EHFRPHV PRUH FDQLQH $ VPDOO
7UHDVXUH 7KHUH DUH GR]HQV RI FU\VWDO JREOHWV VLOYHU DQG VLOYHUIR[QRZVWDQGVEHIRUH\RXJULQQLQJIURPHDUWRHDU
JROG GLVKHV DQG IODWZDUH RQ WKH WDEOHV WKDW WKH 3&V PD\  |:HOO PHW KHURHV RI WKH <HRPDQU\ )LQ WKH )R[ DW \RXU
WDNH7KHPLJKWHYHQWDNHWKHFKDLUVWKHWDEOHVKRZHYHU VHUYLFH}$QGWKH|IR[}VRPHKRZPDQDJHVDORUGO\ERZ|7KRXJK
DUHWRRELJWRILWWKURXJKWKHSRUWDOZKLFKZHLJKURXJKO\
 SRXQGV HDFK 7DNLQJ WKHVH LWHPV WKH FKHVW RU LWV
FRQWHQWV IXOILOOV DQ\ FRPPLWPHQW WR UHWXUQ LWHPV WR WKH
|JQRPH} 1R YDOXH LV OLVWHG KRZHYHU DV WKH IH\ ZLOO
UHFRYHUDQ\LWHPVWDNHQIURPWKLVDUHDH[FHSWWKHVZRUG
ZHGRXEWHG&RQQRFKVSODQ\RXKDYHDFWXDOO\SURYHQWREHERWK
XVHIXODQGIXQ}:LWKWKDWWLQNOLQJODXJKWHUHUXSWVDURXQG\RX
DV IRXU VPDOO HOIOLNH FUHDWXUHV ZLWK JRVVDPHU ZLQJV DSSHDU
7KH\IO\DERXW&RQQRFKZKRVHHPVERWKDPXVHGDQGWURXEOHG
EHIRUHOLJKWLQJXSRQWKHEDUURZPRXQG|2OG5HXQKDVFDXVHG
DQGVKLHOGZKLFK&RQQRFKZLOOWDNHDQGJLYHWR5LDQH
 HQWHUWDLQZKHQDFUD]HGROGPDQFRQVWDQWO\PDXOV\RXUJXHVWV
'HYHORSPHQW $V ZLWK SUHYLRXV HQFRXQWHUV )LQ ZLOO
PRGLI\ KLV EHKDYLRU LI WKH 3&V FDQ VHH WKURXJK KLV
GLVJXLVH ,I WKH SDUW\ FDQ GHWHFW LQYLVLEOH FUHDWXUHV WKH
|ERG\}ZLOOEHIRXQGRQWKHIDUVLGHRIWKHURRPIURPDOO
3&V DIWHU WKH EDWWOH ,I WKH\ FDQ GHWHFW KLV QDWXUDO IRUP
)LQ ZLOO DSSHDU LQ KLV WUXH IRUP DQG WHOO WKH SDUW\ WR
UHWXUQWRWKHFODQ
+ROHLQWKH:DOO
XVWRPRYHDWOHDVWWKUHHSDUWLHVMXVWWKLV\HDU,WVUDWKHUKDUGWR
:HOO &RQQRFK ZLWK RXU EDQTXHW KDOO IUHH SHUKDSV ZH VKDOO
KDYH OHVV WLPH WR SOD\ ZLWK WKH &XPDOKwXQWLO RI FRXUVH RXU
QH[W SDUW\} $QG ZLWK WKDW ERWK WKH IR[ DQG WKH ZLQJHG
FUHDWXUHVGLVDSSHDU
 |$ YDOXDEOH OHVVRQ IRU WKH <HRPDQU\} &RQQRFK GHFODUHV
|7KHIH\KDYHEHHQWKHDOOLHVRIWKH&XPDOKDVZLWKPDQ\RIWKH
+LOOPHQ FODQV IRU FHQWXULHV $Q DOOLDQFH ZLWK XV UHTXLUHV DQ
XQGHUVWDQGLQJRIWKHIH\DQGWKHLUwFXULRXVEHKDYLRU}

 3DJH
$VVXPLQJ WKH 3&V GHIHDWHG 5HXQ EHIRUH OHDYLQJ WKH
PRXQGUHDGWKHIROORZLQJ
 SHRSOH RI JUDFH <RX DUH ZHOFRPH DW P\ WDEOH IURP WKLV GD\
5LDQHVWHSVIRUZDUGWHDUVZHOOLQJLQKHUH\HV|<RXFDQQRWNQRZ
ZKDW\RXKDYHGRQHIRUPHQREOHKHURHV5HXQP\JUDQGIDWKHU
EURNH WKH WUDGLWLRQV RI RXU SHRSOH DQG HQWHUHG WKH ODQG RI WKH
$QFLHQWVQHDUO\DKXQGUHG\HDUVDJR$VVRQRIWKHFKLHIWDLQKH
IHOW LW KLV ULJKW WR SOXQGHU DQG VWHDO +LV VKDPHKDVEHHQZLWK
P\IDPLO\VLQFH}6KHSDXVHVREYLRXVO\VWUXJJOLQJWRKROGEDFN
V SRVVLEOH
WKHWHDUV
 
$WWKLVSRLQW5LDQHWXUQVWRWKH3&WKDWZDVPRVWGHFLVLYH
LQ WKH EDWWOH ZLWK WKH ZLJKW SHUKDSV GHDOLQJ WKH GHDWK
EORZRULQIOLFWLQJWKHJUHDWHVWZRXQGVRUHYHQWDNLQJWKH
EORZV RI WKH FUHDWXUH ZKLOH WKH SDUW\ FORVHG LQ FRPEDW
7KH '0 VKRXOG XVH KLV RU KHU EHVW MXGJPHQW WR GHFLGH
7KH3&UHFHLYLQJWKLVLWHPLIQRWDOUHDG\KRQRUHGZLWKD
VHDW DW &RQQRFKV VLGH GXULQJ WKH LQLWLDO LQWURGXFWLRQ WR
WKH FODQ KDV KLV IDYRU LQFUHDVHG E\ RQH OHYHO IURP
|XQZHOFRPH}WR|XQZRUWK\}WKHQWR|ZHOFRPH}DQGWKHQ

&RQQRFKWKHQWXUQVWR\RXDOO|<RXKDYHVKRZQ\RXUVHOYHVWREH
IRUZDUG LI HYHU \RX VKRXOG UHWXUQ WR WKH ODQGV RI WKH &XPDOK
<RXUHSUHVHQWWKH<HRPDQU\ZHOODQG,ORRNIRUZDUGWRIXUWKHU
RSSRUWXQLWLHVWRVLWZLWK\RXUOHDGHUVDQGJURZWKHERQGEHWZHHQ
RXU SHRSOH <RX PD\ WHOO \RXU NLQJwRU , VXSSRVH \RX ZRXOG
SUHIHU|)UHHKROGHU}{P\DSRORJLHV<RXPD\WHOO\RXU)UHHKROGHU
WKDW &XPDOK LV RSHQ WR IXUWKHU GLVFXVV RXU SHRSOH
XQLRQZLWKWKH<HRPDQU\/HDJXH|
,IVRPH3&VZRQ&RQQRFKVIDYRUEXWRWKHUVZHUHUHIXVHG
DVHDWUHDGWKHIROORZLQJ

&RQQRFKWKHQWXUQVWR\RXDOO|<RXKDYHVKRZQ\RXUVHOYHVWREH
SHRSOHRIJUDFHWKRXJKVRPHDPRQJ\RXVWLOOQHHGWROHDUQVXFK
SULQFLSOHV<RXDUHZHOFRPHDWP\WDEOHIURPWKLVGD\IRUZDUGLI
HYHU\RXVKRXOGUHWXUQWRWKHODQGVRIWKH&XPDOKEXW,ZRXOG
DGYLVH\RXWRFRQGXFW\RXUVHOYHVZLWKPRUHKRQRUZKHQQH[WZH
PHHW<RXUHSUHVHQWWKH<HRPDQU\ERWKE\ZKDW\RXGRDQGE\
WR|IDYRUHG} ZKDW\RXVD\DVZRUGZLOOQRWDQVZHUHYHU\TXHVWLRQ<RXPD\
 WHOO\RXUNLQJwRU,VXSSRVH\RXZRXOGSUHIHU|)UHHKROGHU}{P\
|7KHSL[LHVWROGXVRIWKHEDWWOHZLWK5HXQDQGRI\RXUDFWLRQV DSRORJLHV<RXPD\WHOO\RXU)UHHKROGHUWKDW&XPDOKLVRSHQWR
7KRXJK,FDQQRWKRSHWRUHSD\WKHKRQRU\RXKDYHUHWXUQHGWR IXUWKHUGLVFXVVRXUUHODWLRQVZLWKWKH<HRPDQU\/HDJXHWKRXJK
P\ IDPLO\ , ZLVK \RX WR KDYH WKLV ,W LV D ZDUFOXE 5RQDQV ZHGRQRWIHHOWKDWDXQLRQEHWZHHQRXUSHRSOHVLVDGYLVDEOHDW
3ULGHFUDIWHGIRU5HXQEHIRUHKLVWUHDFKHU\,WZLOOVHUYH\RXZHOO WKLVWLPH|
DQGP\IDPLO\VKDOODOZD\VUHFRJQL]H\RXDVNLQ} 
 $V VKH KDQGV \RX WKH ZHDSRQ ZUDSSHG LQ D EODQNHW RI ,IQR3&VZRQ&RQQRFKVIDYRUUHDGWKHIROORZLQJ
GRHVNLQ 5LDQH ILQDOO\ ORVHV KHU VHOIFRQWURO 6KH TXLFNO\ VWHSV 
EDFNLQWRWKHFURZGDSSDUHQWO\QRWZDQWLQJWRWURXEOH\RXDQ\ &RQQRFKWKHQWXUQVWR\RXDOO|<RXKDYHVKRZQ\RXUVHOYHVWREH
IXUWKHUZLWKKHUWHDUV SHRSOHODFNLQJLQJUDFH,ZRXOGDGYLVH\RXWRFRQGXFW\RXUVHOYHV
 ZLWK PRUH KRQRU ZKHQ QH[W ZH PHHW <RX UHSUHVHQW WKH
$VVXPLQJWKH3&VHQJDJHGWKH|JLDQW}LQPHOHHEHIRUHLW <HRPDQU\ERWKE\ZKDW\RXGRDQGE\ZKDW\RXVD\DVZRUG
GLVDSSHDUHGUHDGWKHIROORZLQJ ZLOO QRW DQVZHU HYHU\ TXHVWLRQ <RX PD\ WHOO \RXU NLQJwRU ,
 VXSSRVH \RX ZRXOG SUHIHU |)UHHKROGHU} <RX PD\ WHOO \RXU
|,QGHHG5LDQHLVFRUUHFW}&RQQRFKVWDWHV|<RXKDYHVHUYHGERWK )UHHKROGHUWKDW&XPDOKLVQRWRSHQWRIXUWKHUGLVFXVVRXUXQLRQ
WKHIDPLO\RI5RQDQDQGWKHFODQRI&XPDOKWRGD\7KRXJK)LQ ZLWKWKH<HRPDQU\/HDJXHDWWKLVWLPH|
DUUD\HG KLPVHOI ILHUFHO\ DV WKH JLDQW \RX VKRZHG FRXUDJH DQG 
IRXJKWRQ7KHVHDUHWKHTXDOLWLHV&XPDOKVHHNVLQDQDOO\DQG ,I WKH 3&V UHIXVHG WR WDNH )LQ WKH *QRPH
V RIIHU WR ORRW
LI WKH <HRPHQ DUH PDGH RI VXFK DV WKLV ZH ZHOFRPH WKH WKHEDUURZPRXQGUHDGWKHIROORZLQJ
RSSRUWXQLW\WRVWDQGZLWKWKHPLQEDWWOH} 
 |7KRXJK WHPSWHG E\ JROG \RX UHIXVHG )LQV RIIHU WR ORRW RXU
7XUQLQJ WR WKH ILUVW SHUVRQ WR DFWXDOO\ HQJDJH )LQ WKH VDFUHGODQGV<RXDUHLQGHHGZLVHWRUHFRJQL]HWKHYDOXHRIUHVSHFW
*LDQWLQPHOHH&RQQRFKFRQWLQXHV RYHU WKDW RI JROG $V \RX KDYH VHHQ ZH SUHYHQW HQWU\ WR WKH
 PRXQGVERWKRXWRIUHVSHFWIRUWKH$QFLHQWVDQGIRUWKHSURWHFWLRQ
|2IDOOWKRVHWKDWIRXJKW\RXVWHSSHGIRUZDUGILUVWUHDG\WRVWDQG RIWKHIRROLVK<RXZRXOGGRZHOOWRWHOO\RXU|'XVWGLJJHUV}WKDW
DJDLQVW QR OHVV WKDQ D JLDQW <RX GHVHUYH VSHFLDO KRQRUDPRQJ OHVVRQ 7KH\ PD\ SLOODJH WKH UXLQV RI WKH 6XHO DQG OL]DUG IRON
WKLV JURXS IRU \RX DUH D KHUR DPRQJ KHURHV &ODQ &XPDOK ZLWKDEDQGRQEXWWKHODQGVRIWKH+LOOPHQPXVWEHUHVSHFWHG}
SUHVHQWV \RX ZLWK WKLV EODGH &XPDOKV )XU\ DV \RX DUH D 
ZDUULRU WUXO\ GHVHUYLQJ <RX ZLOO ILQG LW DFFHSWDEOH , DP VXUH ,I WKH 3&V WRRN )LQ WKH *QRPH
V RIIHU ORRW WKH EDUURZ
DQGLI\RXZLVK%UHH\DZLOOVKRZ\RXWKHVHFUHWVLWKROGV.QRZ PRXQGEXWWRRNQRWKLQJUHDGWKHIROORZLQJ
WKDW&XPDOKZLOODOZD\VUHFRJQL]H\RXE\WKLVEODGH} 
 |7KHWHPSWDWLRQRIJROGSURYHGWRRPXFKIRU\RXEXWZLVGRPOHG
7KH3&UHFHLYLQJWKLVLWHPLIQRWDOUHDG\KRQRUHGZLWKD \RXWRUHVSHFWRXUVDFUHGODQGV<RXDUHLQGHHGZLVHWRUHFRJQL]H
VHDW DW &RQQRFKV VLGH GXULQJ WKH LQLWLDO LQWURGXFWLRQ WR WKHYDOXHRIUHVSHFWRYHUWKDWRIJROGEXW\RXPXVWDOVRUHPHPEHU
WKH FODQ KDV KLV IDYRU LQFUHDVHG E\ RQH OHYHO IURP WKDW D PDQ RI KRQRUV ZRUG PXVW QRW EH EURNHQ $V \RX KDYH
|XQZHOFRPH}WR|XQZRUWK\}WKHQWR|ZHOFRPH}DQGWKHQ VHHQZHSUHYHQWHQWU\WRWKHPRXQGVERWKRXWRIUHVSHFWIRUWKH
WR |IDYRUHG} 7KLV LV FXPXODWLYH ZLWK DQ\ PRGLILFDWLRQ $QFLHQWVDQGIRUWKHSURWHFWLRQRIWKHIRROLVK<RXZRXOGGRZHOO
JLYHQIRUUHFHLYLQJ5RQDQV3ULGH WRWHOO\RXU|'XVWGLJJHUV}WKDWOHVVRQ7KH\PD\SLOODJHWKHUXLQV
 ,I DOO 3&V ZRQ &RQQRFKV IDYRU RU D VHDW DW KLVVLGH RI WKH 6XHO DQG OL]DUG IRON ZLWK DEDQGRQ EXW WKH ODQGV RI WKH
UHDGWKHIROORZLQJ +LOOPHQPXVWEHUHVSHFWHG}

+ROHLQWKH:DOO  3DJH
 )LQGLQJ WKH HQWUDQFH ZLWK WKUHH LQWHOOLJHQFH
,I WKH 3&V WRRN )LQ WKH *QRPH
V RIIHU ORRW WKH EDUURZ FKHFNV [S
PRXQG DQG WRRN LWHPV IURP WKH PRXQG UHDG WKH 
IROORZLQJ (QFRXQWHU6HYHQ
 'HIHDWLQJWKHXQGHDG [S
|7KHWHPSWDWLRQRIJROGSURYHGWRRPXFKIRU\RXDQG\RXFKRVH 
ZHDOWK RYHU UHVSHFW <RX DUH LQGHHG IRROLVK WR YDOXH PDWHULDO 7RWDOH[SHULHQFHIRUREMHFWLYHV [S
JDLQRYHUWKHWUXVWRI\RXUDOOLHV$V\RXKDYHVHHQZHSUHYHQW 'LVFUHWLRQDU\UROHSOD\LQJDZDUG [S
HQWU\WRWKHPRXQGVERWKRXWRIUHVSHFWIRUWKH$QFLHQWVDQGIRU 
WKH SURWHFWLRQ RI WKH IRROLVK <RX ZRXOG GR ZHOO WR WHOO \RXU 7RWDOSRVVLEOHH[SHULHQFH [S
|'XVWGLJJHUV}WKDWOHVVRQ7KH\PD\SLOODJHWKHUXLQVRIWKH6XHO
DQGOL]DUGIRONZLWKDEDQGRQEXWWKHODQGVRIWKH+LOOPHQPXVW 
EHUHVSHFWHG$QGWHOO\RXU)UHHKROGHUWKDWVRORQJDVKLVQDWLRQ
VDQFWLRQV WKH SUDFWLFH RI GHVHFUDWLQJ RXU ODQGV DOOLDQFH ZLOO EH 
GLIILFXOW}
 
7KH(QG
 75($685(6800$5<

3OD\HU FKDUDFWHUV PD\ NHHS LWHPV IURP WKH VFHQDULR WKDW
(;3(5,(1&(32,17 DUH OLVWHG RQ WKH WUHDVXUH OLVW EHORZ RU ZKLFK PHHW WKH
IROORZLQJFRQGLWLRQV
6800$5< 
7RDZDUGH[SHULHQFHIRUWKLVDGYHQWXUHDGGXSWKHYDOXHV  7KHLWHPPXVWEHQRQPDJLFDODQGVSHFLILFDOO\OLVWHG
IRU WKH REMHFWLYHV DFFRPSOLVKHG 7KHQ DVVLJQ WKH
GLVFUHWLRQDU\ UROHSOD\LQJ H[SHULHQFH DZDUG 7KH
UROHSOD\LQJ DZDUG VKRXOG EH JLYHQ IRU FRQVLVWHQW
FKDUDFWHU SRUWUD\DO DQG FRQWULEXWLRQ WR WKH IXQ RI WKH
JDPH <RX FDQ DZDUG GLIIHUHQW UROHSOD\LQJ DPRXQWV WR
LQWKHWH[WRIWKHDGYHQWXUHHJDUPRURQIRHV,ILW
LVQRWOLVWHGLQWKHWH[WWKHFKDUDFWHUVFDQQRWNHHSLW
,WHPV RI WKLV QDWXUH FDQ EH VROG IRU  RI ERRN
YDOXHRUUHFRUGHGRQDORJVKHHW
 $QLPDOV IROORZHUV PRQVWHUV KHQFKPHQ DQG VR
GLIIHUHQWFKDUDFWHUV IRUWK DQ\ OLYLQJ EHLQJ EDVLFDOO\ PD\ QRW EH NHSW
 $ZDUGWKHWRWDOYDOXHREMHFWLYHVSOXVUROHSOD\LQJWR IURP D VFHQDULR IRU DQ\ UHDVRQ XQOHVV WKH WUHDVXUH
HDFKFKDUDFWHU VXPPDU\OLVWVWKHEHLQJVSHFLILFDOO\,WLVRND\IRUWKH
 SOD\HU FKDUDFWHUV WR IRUP UHODWLRQVKLSV ZLWK 13&V
'0 $LG  FDQ EH XVHG WR WUDFN WKH 3&V SURJUHVVLRQ EXW WKHVH ZLOO QRW EH FHUWHG DQG FDQQRW EULQJ
WKURXJKWKHPRGXOH PDWHULDOEHQHILWWRWKHFKDUDFWHU&RQWDFWVVRXUFHVRI
 H[WUDLQIRUPDWLRQPXVWEHVSHFLILFDOO\FHUWHG
(QFRXQWHU2QH  7KHIW LV DJDLQVW WKH ODZ EXW PD\ EH SUDFWLFHG E\
VRPH SOD\HU FKDUDFWHUV ,WHPV WKDW DUH ZRUWK PRUH
5HIXVHWRDFFHSW)LQVRIIHU [S
WKDQ  JS WKDW DUH RI SHUVRQDO VLJQLILFDQFH WR WKH
$FFHSW )LQV RIIHU EXW ODWHU UHIXVH WR WDNH LWHPV
RZQHU LQFOXGLQJ IDPLO\ KHLUORRPV DQG DOO PDJLFDO
IURPWKHPRXQG [S
LWHPV ZLOO EH GLVFRYHUHG LQ WKH SRVVHVVLRQ RI WKH

FKDUDFWHU E\ RQH PHDQV RU DQRWKHU 7KH FKDUDFWHU
(QFRXQWHU)RXU PXVW UHWXUQ WKH LWHP DQG SD\ D ILQH HTXDO WR WKUHH
 RU PRUH 3&V LV IDYRUHG DQG DOO RWKHU 3&V DUH WLPHV WKH YDOXH RI WKH LWHP VWROHQ ,Q DGGLWLRQ WKH
ZHOFRPHG [S 3& FDXJKW UHFHLYHV FDPSDLJQGHFLGHG SHQDOWLHV IRU
$OO3&VDUHZHOFRPHG [S EHLQJNQRZQDVDWKLHI)RURWKHUVWROHQLWHPVZKLFK
 RU PRUH 3&V ZLQ &RQQRFKV IDYRU DQGRU PHHWWKHFULWHULDLQDERYHXVH\RXUMXGJPHQWDQG
ZHOFRPHDQGQR3&VDUHXQZHOFRPH [S WKH FLUFXPVWDQFHV ZLWKLQ WKH JDPH WR GHWHUPLQH
 RU PRUH 3&V ZLQ &RQQRFKV IDYRU DQGRU ZKHWKHUD3&WKLHIJHWVDZD\ZLWKWKHWKHIWRUQRW
ZHOFRPHEXWRUPRUH3&VDUHXQZHOFRPH [S 
 $Q\ LWHP UHWDLQHG DFFRUGLQJ WR WKHVH UXOHV ZKLFK GRHV
(QFRXQWHU)LYH QRW KDYH D FHUWLILFDWH ZLOO QRW HYHU KDYH D FHUWLILFDWH
'HIHDWLQJWKH|JLDQW}EHIRUHKHGLVDSSHDUV [S LVVXHGIRULW
  7KH FDPSDLJQ VWDII UHVHUYHV WKH ULJKW WR WDNH DZD\
(QFRXQWHU6L[ DQ\ LWHP RU JROG DFTXLUHG IRU WKLQJV WKDW LW ODWHU ILQGV
)LQGLQJWKHHQWUDQFHWRWKHPRXQGXQDLGHG [S XQUHDVRQDEOHEXWZKLFKZHUHDOORZHGDWWKHWLPH
)LQGLQJ WKH HQWUDQFH ZLWK RQH ,QWHOOLJHQFH 
FKHFN [S ,QWURGXFWLRQ
)LQGLQJ WKH HQWUDQFH ZLWK WZR ,QWHOOLJHQFH (PEOHP RI WKH /HDJXH  SHU 3&  JS  OE
FKHFNV [S MHZHOU\QHFNODFH UDUH $ SODWLQXPGLVFVXVSHQGHGIURP
D FKDLQ RI JROG 7KH UDLVHG LPDJH RI WKH VKLHOG RI WKH

+ROHLQWKH:DOO  3DJH
<HRPDQU\ LV VHW LQWR WKH FHQWHU RI WKH GLVF LQ JROG 7KH EHJLQQLQJHYHQLIWKHLWHPLVWUDGHGEDFNWRWKHRULJLQDO
ZRUGV|)UHHGRP}}3URVSHULW\}}-XVWLFH}}6WUHQJWK}FLUFOH RZQHU
WKHVKLHOG

(QFRXQWHU2QH
N <HRPDQ :LFNOHU  ZKHHOV  VS  OE IRRGVWXII
FRPPRQ *UHHQLVK PDUEOLQJ JLYHV WKLV LYRU\
FRORUHG FKHHVH IURP WKH <HRPDQU\ LWV GLVWLQFWLYH
DSSHDUDQFH (DFK ZKHHO LV DJHG RYHU  PRQWKV WR
HQVXUH D VPRRWK SXQJHQW IODYRU DQG WKHQ VHDOHG
ZLWKLQ D ZD[ ULQG <HRPHQ RIWHQ PL[ WKH VKUHGGHG
FKHHVH ZLWK EHDQV DQG VSUHDG RYHU ZDUP IODWEUHDG
:LFNOHULVDYDLODEOHZLWKRUZLWKRXWQXWV
N )DUYDOH *ROG  JS  OE GULQN XQFRPPRQ 2I
SDUWLFXODUSULGHWRWKHSHRSOHRI)DUYDOH)DUYDOH*ROG
LVDVWURQJOLTXRUPDGHZLWKFRUQDQGDSSOHMXLFHWKDW
LVTXLWHSRSXODULQWKHUHJLRQDQGHOVHZKHUH

&RQFOXVLRQ
&XPDOKV)XU\JSOEVWHHOUDUH&XPDOKV)XU\LVD
+LOOPDQ EURDGVZRUGJLYHQWRVKRZJUDWLWXGHIRUVHUYLFH
WR &ODQ &XPDOK 7KLVYHU\VWXUG\VZRUGKDVDWKLFN
VWHHOILOLJUHHKDQGEDVNHW7KHEDVNHWSURYLGHVWKHZLHOGHU
ZLWKWKHVDPHEHQHILWVDVDJDXQWOHWXQDUPHGDWWDFNVGHDO
QRUPDO GDPDJH UDWKHU WKDQ VXEGXDO GDPDJH EXW
SURKLELWV WZRKDQGHG XVH 7KLV ZHDSRQ LV QRUPDOO\
ZLHOGHG DV D ORQJVZRUG ZLWK H[DFWO\ WKH VDPH GDPDJH
DQG FULWLFDO +RZHYHU E\ WDNLQJ DQ ([RWLF :HDSRQ
3URILFLHQF\ IHDW ZLWK WKLV VZRUG WKH ZLHOGHU JDLQV D 
$UPRU ERQXV WR $& IURP WKH EDVNHW ZKHQ XVLQJ WKH
)LJKWLQJ 'HIHQVLYHO\ RU 7RWDO 'HIHQVH PDQHXYHUV RU WKH
([SHUWLVH IHDW DQG PD\ SXQFK ZLWK WKH EDVNHW ZLWKRXW
SURYRNLQJ DQ DWWDFN RI RSSRUWXQLW\ 7KH H[SHUW
FUDIWVPDQVKLS RI WKLV ZHDSRQ DOVR JUDQWV D 
HQKDQFHPHQW ERQXV WR DWWDFNV $ OHDWKHU VFDEEDUG ZLWK
VWHHOWKURDWDQGWLSHWFKHGZLWKZRRGODQGVFHQHVRIERDU
KXQWLQJ LV LQFOXGHG %ODGH /HQJWK  :LGWK  
2YHUDOO/HQJWK

5RQDQV3ULGHJSOEZRRGUDUH5RQDQV3ULGHLV
D+LOOPDQZDUFOXEJLYHQWRVKRZJUDWLWXGHIRUVHUYLFHWR
&ODQ &XPDOK DQG WKH IDPLO\ RI 5RQDQ 7KH WRS RI WKLV
GDUNZRRG FXGJHO LV FDUYHG LQ WKH VKDSH RI D UDPV KHDG
7KH KDQGOH LV ZUDSSHG LQ KDQGWRROHG EXFNVNLQ HWFKHG
ZLWKDQLPDJHRIWKH&XPDOK+LOOIRUW1RUPDOO\ZLHOGHG
DVDPDVWHUZRUNFOXEZLWKH[DFWO\WKHVDPHGDPDJHDQG
FULWLFDO WKH ZLHOGHU PD\ DOVR VWULNH ZLWK WKH VWHHOVKRG
KRUQVRIWKHUDPSURWUXGLQJIURPWKHEDFNRIWKHKHDGIRU
GSRLQWVRISLHUFLQJGDPDJH[FULW$VVXFKWKLVFDQ
EHXVHGDVDGRXEOHZHDSRQ7KHH[SHUWFUDIWVPDQVKLSRI
WKLV ZHDSRQ JUDQWV D  HQKDQFHPHQW ERQXV WR DWWDFN
UROOV+RZHYHURYHUWLPH5RQDQV3ULGHDWWXQHVLWVHOIWRLWV
ZLHOGHU $IWHU  /LYLQJ *UH\KDZN DGYHQWXUHV ZLWK WKH
VDPHRZQHUWKHZHDSRQJDLQVDPDJLFDOHQKDQFHPHQW
ERQXV WR DWWDFN DQG GDPDJH UROOV 7KLVLVQRWFXPXODWLYH
ZLWKWKHERQXVIRUWKHLWHPEHLQJPDVWHUZRUN
6KRXOG WKLV LWHP EH WUDGHG RU VROG WR DQRWKHU 3& LW
UHYHUWV WR LWV RULJLQDO PDVWHUZRUN VWDWXV DQG WKH 
DGYHQWXUH SURJUHVVLRQ PXVW VWDUW DJDLQ IURP WKH

+ROHLQWKH:DOO  3DJH
 $33(1',;$1(:02167(53+28.$


)LQ3KRXND
6PDOO)H\
+LW'LFH GKS
,QLWLDWLYH  'H[,PSURYHG,QLWLDWLYH
6SHHG   IW
$&    VL]H'H[QDWXUDO
$WWDFNV   %LWHPHOHH
'DPDJH G
)DFH5HDFK  IWE\IWIW
6SHFLDO4XDOLWLHV 6KDSHFKDQJHQDWXUDOLQYLVLELOLW\65
6DYHV   )RUW5HI:LOO
$ELOLWLHV 6WU'H[&RQ,QW:LV&KD
6NLOOV   %OXII'LVJXLVH+LGH/LVWHQ0RYH6LOHQWO\3LFN3RFNHW
)HDWV    'RGJH *UHDW )RUWLWXGH ,PSURYHG ,QLWLDWLYH 0RELOLW\ 6NLOO )RFXV %OXII 6NLOO )RFXV
'LVJXLVH

&OLPDWH7HUUDLQ  7HPSHUDWHDQGZDUPIRUHVW
2UJDQL]DWLRQ  6ROLWDU\RUJDQJ
&KDOOHQJH5DWLQJ
7UHDVXUH 6WDQGDUG
$OLJQPHQW  $OZD\VFKDRWLFJRRG
$GYDQFHPHQW  +'6PDOO

3KRXND DUH XQXVXDO IH\ LQ WKDW WKH\ VHHP WR KDYH QR FRPPRQ QDWXUDO IRUP 2QH SKRXND PD\ DSSHDU WR EH D KRUVH
DQRWKHU PD\ EH D IR[ ZKLOH \HW DQRWKHU PD\ EH D UDYHQ 7KH IRUP VHHPV OLPLWHG RQO\ WR DQLPDOV QDWLYH WR ZKDWHYHU
UHJLRQWKHSKRXNDLQKDELWV$SKRXNDVQDWXUDOIRUPGHWHUPLQHVYDULRXVTXDOLWLHVRIWKHFUHDWXUHLQFOXGLQJH[WUDRUGLQDU\
DELOLWLHVSK\VLFDODWWULEXWHV6WU'H[DQG&RQDWWDFNVHWF
 7KH WDOHQW FRPPRQ WR DOO SKRXND DQG IRU ZKLFK WKH\ DUH IDPHG LV WKHLU DELOLW\ WR DVVXPH WKH IRUP RI DOPRVW
DQ\WKLQJWKH\KDYHHYHUVHHQ7KHVHFUHDWXUHVGHOLJKWLQXVLQJWKHLUQDWXUDODELOLWLHVRIVKDSHFKDQJLQJDQGLQYLVLELOLW\WR
SOD\SUDQNVRQPRUWDOV6XFKSUDQNVDUHQHYHUSK\VLFDOO\KDUPIXOLQGHHGWKHSKRXNDVHHPWRDYRLGYLROHQFHLQJHQHUDO
EXWPD\UHVXOWLQZRXQGHGSULGHDQGEUXLVHGHJRV$VZLWKPRVWIH\WKHSKRXNDYLROHQWO\RSSRVHHYLOHVSHFLDOO\XQGHDG
DQGGRSSHOJDQJHUVZKRDUHUXPRUHGWREHFRXVLQVRIWKHVHFUHDWXUHVDOWKRXJKPHQWLRQLQJVXFKWRDSKRXNDLQVXUHVD
OLIHVHQWHQFHRISUDQNV

&RPEDW
$VQRWHGWKHSKRXNDJHQHUDOO\DYRLGSK\VLFDOFRPEDW,IDQHYLOLQWUXGHUHQWHUVWKHLUWHUULWRU\SKRXNDWU\WRGULYHWKH
FUHDWXUHRIIZLWKRXWFRPEDW7KH\PD\DOVRWU\WRWULFNKXPDQRLGVLQWRULGGLQJWKHPRIWKLVHYLO,IVXFKDWWHPSWVIDLO
WKH SKRXND PD\ DVVXPH D IRUP SRZHUIXO HQRXJK WR FRPEDW WKH FUHDWXUH WKLV DSSURDFK LV DOPRVW DOZD\V XVHG ZLWK
XQGHDGDQGGRSSHOJDQJHUV
 6KDSHFKDQJH6X$SKRXNDFDQVKDSHFKDQJHRQFHSHUGD\SHUHYHU\+'DVWKHVSHOOFDVWE\DVRUFHUHUOHYHO
  +' +RZHYHU WKH SKRXND FDQQRW DVVXPH D IRUP ELJJHU WKDQ /DUJH DQG FDQQRW DVVXPH LQFRUSRUHDO IRUPV 7KH
SKRXND JDLQV WKH H[WUDRUGLQDU\ DELOLWLHV RILWVQHZIRUPZKLOHNHHSLQJLWVRZQ7KHSKRXNDDOVRJDLQVWKHW\SHRIWKH
QHZIRUPIRUH[DPSOHGUDJRQRUPDJLFDOEHDVWLQSODFHRILWVRZQ7KHQHZIRUPGRHVQRWGLVRULHQWWKHSKRXND
3DUWVRIWKHSKRXNDVERG\RUSLHFHVRIHTXLSPHQWWKDWDUHVHSDUDWHGIURPLWGRQRWUHYHUWWRWKHLURULJLQDOIRUPV7KXVD
QHZIRUPVSRLVRQELWHLVHIIHFWLYH7KHSKRXNDFDQEHFRPHMXVWDERXWDQ\WKLQJLWLVIDPLOLDUZLWK7KHSKRXNDJHWV
RQ'LVJXLVHFKHFNVZKHQXVLQJWKLVDELOLW\
 1DWXUDO,QYLVLELOLW\6X$SKRXNDUHPDLQVLQYLVLEOHHYHQZKHQLWDWWDFNV7KLVDELOLW\LVFRQVWDQWEXWWKHSKRXND
FDQVXSSUHVVRUUHVXPHLWDVDIUHHDFWLRQ

+ROHLQWKH:DOO  3DJH

'0}6$,'x5($&7,21&+$57$1'(;3(5,(1&(32,1775$&.(5

(QFRXQWHU2QH ;3$ZDUG  5HDFWLRQ0RGLILHU
5HIXVHWRDFFHSW)LQVRIIHU [S  JOREDO
$FFHSW)LQVRIIHUEXWODWHUUHIXVHWRWDNHLWHPVIURPWKHPRXQG [S  JOREDO
$FFHSW)LQVRIIHUDQGWDNHLWHPVIURPWKHPRXQG [S  JOREDO
1HJDWLYHFRPPHQWVDERXWWKH+LOOPHQPD\DOVRFRPHIURP(QFRXQWHU7ZRRU7KUHH [S  JOREDO
   
(QFRXQWHU)RXU  &ODVVDSSHDUDQFH 
RUPRUH3&VLVIDYRUHGVLGHDQGDOORWKHU3&VDUHZHOFRPHG [S :DUULRU SHUVRQDO
$OO3&VDUHZHOFRPHG [S 0DJH&OHULF SHUVRQDO
RUPRUH3&VZLQ&RQQRFKVIDYRUDQGRUZHOFRPHDQGQR3&VDUHXQZHOFRPH [S 'UXLG%DUG SHUVRQDO
RUPRUH3&VZLQ&RQQRFKVIDYRUDQGRUZHOFRPHEXWRUPRUH3&VDUHXQZHOFRPH [S  
  5DFH 
(QFRXQWHU)LYH  (OI+DOIHOI SHUVRQDOQRFODVVSHQDOWLHV
'HIHDWLQJWKH|JLDQW}EHIRUHKHGLVDSSHDUV [S +DOIRUF SHUVRQDOQRFODVVERQXVHV
   
(QFRXQWHU6L[  ,QWURGXFWLRQ 
)LQGLQJWKHHQWUDQFHWRWKHPRXQGXQDLGHG [S $SSURSULDWH SHUVRQDO
)LQGLQJWKHHQWUDQFHZLWKRQH,QWHOOLJHQFHFKHFN [S %RDVWIXO SHUVRQDO
)LQGLQJWKHHQWUDQFHZLWKWZR,QWHOOLJHQFHFKHFNV [S 8VHRI%OXIIVNLOO 'HWHFWLRQJUDQWV8QZRUWK\VWDWXV
)LQGLQJWKHHQWUDQFHZLWKWKUHHLQWHOOLJHQFHFKHFNV [S  ZKHQFDOFXODWLQJH[SHULHQFH
   
(QFRXQWHU6HYHQ  6WDWXV 5ROOZLWKPRGLILHUV
'HIHDWLQJWKHXQGHDG [S )DYRUHG 
  :HOFRPHG 
7RWDOH[SHULHQFHIRUREMHFWLYHV [S 8QZRUWK\ 
'LVFUHWLRQDU\UROHSOD\LQJDZDUG [S 8QZHOFRPH RUOHVV
   
7RWDOSRVVLEOHH[SHULHQFH [S  
&KDUDFWHU &ODVV 5DFH ,QWURGXFWLRQ *OREDO 6NLOO&KHFN 7RWDO 6WDWXV
.HOOHQHG5LDQH       :HOFRPHG
      
      
      
      
      
      

+ROHLQWKH:DOO  3DJH
7KLVSDJHLQWHQWLRQDOO\OHIWEODQNIRUGRXEOHVLGHGSULQWLQJ


+ROHLQWKH:DOO  3DJH
 '0}6$,'x7+()$50+286(

3L[LH

3L[LH
)LQ

3L[LH


3L[LH

   
6FDOHLQ)HHW

+ROHLQWKH:DOO  3DJH
 '0}6$,'x7+(%$552:0281'

 

3&VHQWHUIURPWKHHDVW

 3RUWDODSSHDUVKHUH




   
6FDOHLQ)HHW

+ROHLQWKH:DOO  3DJH
 '0}6$,'x7+(%$148(7+$//

 5HXQHG
5LDQH

  

+ROHLQWKH:DOO  3DJH
7KLVSDJHLQWHQWLRQDOO\OHIWEODQNIRUGRXEOHVLGHGSULQWLQJ


+ROHLQWKH:DOO  3DJH
 3/$<(5+$1'287
:RUWK\IULHQGRIWKH<HRPDQU\

,EHVHHFK\RXWRFRQVLGHUWKHZRUGVRIWKLVOHWWHUZLWKFDUH7KH<HRPDQU\/HDJXHLVLQQHHGRI\RXUDVVLVWDQFH
LIDWDOOSRVVLEOH$V,DPVXUH\RXDUHDZDUHWKHJLDQWVRIWKH-RWHQVSRVHDJUDYHGDQJHUWRWKLVIUHHQDWLRQ
HYHQSUHVVLQJODVW\HDUQHDUO\WRRXUJUHDWFDSLWDORI/RIWZLFNZLWKWKHLUUDLGV7RJXDUGDJDLQVWWKHWKUHDWRI
IXUWKHUJLDQWLQFXUVLRQVIURPWKH-RWHQVZHPXVWILQGZD\VWRIRUWLI\WKHERUGHUVRIWKH<HRPDQU\6HYHUDO
IRUWVUXQWKHOHQJWKRIWKHVRXWKHUQVORSHVRIWKH-RWHQVSURYLGLQJDEDVHIRURXUORQJUDQJLQJVSHDUPHQDQG
GZDUYHQDOOLHVWRGHWHFWWKHJLDQWVEHIRUHWKH\LQYDGHRXUODQGV+RZHYHULWKDVEHFRPHHYLGHQWWKDWWKLVZDOO
DJDLQVWWKHEUXWHVLVQRWZLWKRXWLWVKROHV$VFRQVWUXFWLRQRIPRUHIRUWLILFDWLRQVZRXOGEHERWKH[SHQVLYHDQG
WLPHFRQVXPLQJP\DGYLVRUVKDYHVXJJHVWHGDQRWKHUFRXUVHRIDFWLRQVWUHQJWKHQWKH<HRPDQU\VUHODWLRQVKLS
ZLWKWKHLQGHSHQGHQW+LOOPHQFODQVRIWKH/DFKWQDWULEHOLYLQJDORQJWKHVRXWKHUQVORSHVRIWKH-RWHQVDQGLQ
WKHQRUWKHUQ/LWWOH+LOOV7KHVHFODQVZKLOHQRWKRVWLOHWRWKH<HRPDQU\KDYHQHYHUFKRVHQWRMRLQWKH/HDJXH
DV FLWL]HQV 7KH\ DFWLYHO\ SURWHFW WKH ERXQGDULHV RI WKHLU WHUULWRU\ IURP LQFXUVLRQV EXW JHQHUDOO\ GR QRW
LQWHUYHQHLQWURXEOHVEH\RQGWKHLUERUGHUVRUHYHQZDUQQHLJKERULQJFRPPXQLWLHVRISRVVLEOHGDQJHU7KHODUJHVW
RIWKHVH&ODQ&XPDOKGHIHQGVLWVWHUULWRU\IURPDQDQFLHQWKLOOIRUWURXJKO\PLGZD\EHWZHHQ)RUW7KRPDVDQG
)RUW$XJXVW:LQQLQJ&XPDOKRYHUWRWKHVLGHRIWKH<HRPDQU\HLWKHUDVDQDOO\RUDVSRWHQWLDOFLWL]HQVZLOO
ILOODVLJQLILFDQWKROHLQRXUGHIHQVHVDQGZLOOGRPXFKWRLQVSLUHWKHVPDOOHUFODQVWRMRLQLQDFRPPRQGHIHQVH

$ GHOHJDWLRQ VHQW WR &ODQKROG &XPDOK UHWXUQHG ZLWK KRSHIXO EXW XQXVXDO QHZV 7KH FODQ VHHU KDG IRUHVHHQ
WKHLUFRPLQJDQGWKHFODQFKLHIWDLQPHWRXUHQYR\VDWKLVERUGHUZLWKWKHVHZRUGV:HNQRZRI\RXUFRPLQJ
DQG ZKDW \RX VHHN EXW \RX DUH QRW WKH <HRPDQU\ 2QH RI RXU FODQ ZLOO DUULYH ZLWK WKH VXQ LQ WKH FLW\ RI
6LQJOHWRQ RQ :DWHUGD\ LQ IRXU ZHHNV WLPH 7KH IROORZLQJ SHRSOH PD\ EH SUHVHQW WR VKRZ RXU FODQ ZKDW LW
PHDQVWREH<HRPDQ+HFRQWLQXHGGHVFULELQJYDULRXVLQGLYLGXDOVDOOVXSSRVHGO\WREHIRXQGZLWKLQWKH
FRPPXQLWLHVRIWKH/HDJXH6RPHZHUHFLWL]HQVRWKHUVZHUHQRWDQGVRPHZHUHQRWHYHQIURPWKH<HRPDQU\
%XWWKHLQWHQWLRQZDVFOHDUWKHVHSHRSOHPXVWEHIRXQGDQGFRQYLQFHGWRPHHWWKH&XPDOKHPLVVDU\LQWKHFLW\
RI6LQJOHWRQ7KHFKLHIPHQWLRQHGDVHULHVRIWHVWVWKDWZRXOGUHYHDOWKHWUXHQDWXUHRIWKH<HRPDQU\WRKLV
FODQDQGWKHVHFKRVHQPXVWSDVVWKRVHWHVWVWRZLQWKHVXSSRUWRI&XPDOK

<RXDUHRQHRIWKRVHQDPHGE\WKHFKLHIWDLQ0DQ\KDYHDOUHDG\UHIXVHGWKLVWHVWDQG\RXDOVRKDYHWKDWULJKW
+RZHYHUDVDJHVWXUHRIIDLWK,H[WHQGWR\RXD0HGDORI+RQRUUHVHUYHGIRUWKRVHWKDWVHUYHWKH<HRPDQU\
WKURXJKJUHDWGHHGV6KRXOG\RXDFFHSWWKLVPLVVLRQWKHPHGDOLV\RXUVWRNHHSUHJDUGOHVVRIVXFFHVVRUIDLOXUH
IRU\RXZLOOVWLOOKDYHVHUYHGWKH<HRPDQU\ZHOOWKURXJK\RXUZLOOLQJQHVV7KHPHVVHQJHUWKDWEHDUVWKLVOHWWHU
ZLOOSUHVHQWWKHPHGDOXSRQDFFHSWDQFHDWZKLFKWLPH,ZRXOGDVN\RXMRXUQH\WR6LQJOHWRQZLWKDOOVSHHGDQG
VHHN RXW WKH LQQ FDOOHG)UHHPDQV 6SHDU 7KH +LOOPDQ HQYR\ ZLOO , DP VXUH PDNH DOO WKLQJV FOHDU XSRQ KLV
DUULYDO$JDLQWKH<HRPDQU\WKDQNV\RXIRU\RXUVHUYLFH

+LV6WHDGIDVWQHVV
0DULXV/LQGRQWKH)UHHKROGHU
6SRNHVPDQIRUWKH<HRPDQU\/HDJXH


+ROHLQWKH:DOO  3DJH

(1/,67,1*7+(,&21,&
7RUGHN PDOH GZDUI )WU &5 0HGLXPVL]HKXPDQRLGGZDUI+'GKS,QLW6SGIW$&
WRXFKIODWIRRWHG$WNVPHOHHG[GZDUYHQZDUD[HRUUDQJHGG[VKRUWERZ64
'ZDUYHQ WUDLWV $/ /1 69 )RUW  5HI  :LOO  6WU  'H[  &RQ  ,QW  :LV  &KD 
 6NLOOVDQG)HDWV&OLPE-XPS([RWLF:HDSRQ3URILFLHQF\GZDUYHQZDUD[H:HDSRQ)RFXVGZDUYHQ
ZDUD[H 
 3RVVHVVLRQV 7UDYHOHUV RXWILW VFDOH PDLO ODUJH ZRRGHQ VKLHOG GZDUYHQ ZDUD[H VKRUWERZ TXLYHU ZLWK 
DUURZV EDFNSDFN ZLWK ZDWHUVNLQ  GD\ WUDLO UDWLRQV EHGUROO VDFN DQG IOLQW DQG VWHHO

0LDOHH IHPDOH HOI :L] &5  0HGLXPVL]H KXPDQRLG HOI +' G KS  ,QLW  6SG  IW $& 
WRXFKIODWIRRWHG$WNVPHOHHGTXDUWHUVWDIIRUzPHOHHGTXDUWHUVWDIIDQGzPHOHHG
TXDUWHUVWDIIRUUDQJHGG[VKRUWERZ64(OYHQWUDLWV$/169)RUW5HI:LOO6WU'H[
 &RQ  ,QW  :LV  &KD  
 6NLOOV DQG )HDWV &RQFHQWUDWLRQ  .QRZOHGJH DUFDQH  /LVWHQ  6HDUFK  6SHOOFUDIW  6SRW 
6FULEH 6FUROO YLUWXDO 7RXJKQHVV 
 6SHOOV 3UHSDUHG  EDVH '&    VSHOO OHYHO {GD]H UD\ RI IURVW UHDG PDJLF VW{PDJH DUPRU VOHHS 
 6SHOOERRN {DOO RI WKHP VW{FKDUP SHUVRQ PDJH DUPRU PDJLF PLVVLOH VOHHS VXPPRQ PRQVWHU , 
 3RVVHVVLRQV7UDYHOHUVRXWILWTXDUWHUVWDIIVKRUWERZTXLYHURIDUURZVEDFNSDFNZLWKZDWHUVNLQGD\WUDLO
UDWLRQV EHGUROO VDFN IOLQW DQG VWHHO  FDQGOHV PDS FDVH  SDJHV SDUFKPHQW LQN DQG SHQ VSHOO SRXFK
VSHOOERRN 

/LGGD IHPDOH KDOIOLQJ 5RJ &5  6PDOO KXPDQRLG KDOIOLQJ +' G KS  ,QLW  6SG  IW $& 
WRXFKIODWIRRWHG$WNVPHOHHGVKRUWVZRUGRUUDQJHGGOLJKWFURVVERZRU
 PHOHH G GDJJHU RU  UDQJHG G GDJJHU 6$ 6QHDN DWWDFN G 64+DOIOLQJWUDLWV$/
&* 69 )RUW  5HI  :LOO  6WU  'H[  &RQ  ,QW  :LV  &KD 
 6NLOOVDQG)HDWV&OLPE'LVDEOH'HYLFH*DWKHU,QIRUPDWLRQ+LGH-XPS/LVWHQ0RYH
6LOHQWO\  2SHQ /RFNV  6HDUFK  6SRW  7XPEOH  8VH 0DJLF 'HYLFH  ,PSURYHG ,QLWLDWLYH
 3RVVHVVLRQV([SORUHUVRXWILWOHDWKHUDUPRUVKRUWVZRUGOLJKWFURVVERZFURVVERZEROWVGDJJHU%DFNSDFN
ZLWKZDWHUVNLQGD\WUDLOUDWLRQVEHGUROOVDFNIOLQWDQGVWHHOWKHLYHVWRROVKRRGHGODQWHUQSLQWVRIODQWHUQ
RLO 

-R]DQPDOHKXPDQ&OU&50HGLXPVL]HKXPDQRLGKXPDQ+'GKS,QLWz6SGIW$&
 WRXFK  IODWIRRWHG  $WN  PHOHH G KHDY\ PDFH RUz UDQJHG G OLJKW FURVVERZ 6$
7XUQ8QGHDGGD\G$/1*69)RUW5HIz:LOO6WU'H[&RQ,QW:LV&KD
 6NLOOV DQG )HDWV &RQFHQWUDWLRQ  +HDO  /LVWHQ  .QRZOHGJH UHOLJLRQ  6SHOOFUDIW  6SRW 
$OHUWQHVV 6FULEH 6FUROO
 6SHOOV 3UHSDUHG  EDVH '&   VSHOO OHYHO {GHWHFW SRLVRQ JXLGDQFH UHDG PDJLF VW{EOHVV SURWHFWLRQ
IURP HYLO  VKLHOG RI IDLWK 
 'RPDLQVSHOO'HLW\3HORU'RPDLQV*RRGJRRGVSHOOVFDVWDWFDVWHUOHYHODQG+HDOLQJKHDOLQJVSHOOV
FDVW DW  FDVWHU OHYHO
 3RVVHVVLRQV &OHULFV YHVWPHQWV VFDOH PDLO ODUJH ZRRGHQ VKLHOG KHDY\ PDFH OLJKW FURVVERZ  FURVVERZ
EROWV EDFNSDFN ZLWK ZDWHUVNLQ  GD\ RI WUDLO UDWLRQV EHGUROO VDFN IOLQW DQG VWHHO ZRRGHQ KRO\ V\PERO VXQ
GLVN RI 3HORU  WRUFKHV