Вы находитесь на странице: 1из 23

7KH7DURW

,WV2FFXOW6LJQLILFDQFH8VHLQ)RUWXQH7HOOLQJ
DQG0HWKRGRI3OD\(WF

%\6/0DF*UHJRU0DWKHUV

7KH7DURW
,WV2FFXOW6LJQLILFDQFH8VHLQ)RUWXQH7HOOLQJ
DQG0HWKRGRI3OD\(WF 
7RHQWHUZLWKLQWKHOLPLWVRIWKLVVKRUWWUHDWLVHXSRQDQ\ORQJLQTXLU\
LQWRWKH+LVWRU\RI&DUGVLVXWWHUO\RXWRIWKHTXHVWLRQDQG,VKDOO
WKHUHIRUHFRQILQHP\VHOIWRH[DPLQLQJEULHIO\LQWRZKDWUHODWHVWRWKHLU
PRVWDQFLHQWIRUPWKH7DURWRU7DURFFKL&DUGVDQGWRJLYLQJDV
FOHDUO\DQGFRQFLVHO\DVSRVVLEOHLQVWUXFWLRQVZKLFKZLOOHQDEOHP\
UHDGHUVWRXWLOLVHWKHPIRUIRUWXQHWHOOLQJWRZKLFKWKH\DUHIDUEHWWHU
DGDSWHGIURPWKHJUHDWHUQXPEHUDQGYDULHW\RIWKHLUFRPELQDWLRQV
WKDQWKHRUGLQDU\FDUGV,VKDOODOVRHQWHUVRPHZKDWLQWRWKHLURFFXOW
DQG4DEDOLVWLFDOVLJQLILFDWLRQV

7KHWHUP³7DURW´RU³7DURFFKL´LVDSSOLHGWRDSDFNRIFDUGV
FRQVLVWLQJRIIRXUVXLWVRIFDUGVHDFK WKHUHEHLQJRQHPRUHFRXUW
FDUGWKDQLQWKHRUGLQDU\SDFNV²WKH&DYDOLHU.QLJKWRU+RUVHPDQ 
DQGV\PEROLFDOSLFWXUHFDUGVDQVZHULQJIRUWUXPSV7KHVHODWWHUDUH
QXPEHUHGIURPWRLQFOXVLYHWKHQGFDUGEHLQJPDUNHG=HUR
7KHGHVLJQVRIWKHVHWUXPSVDUHH[WUHPHO\VLQJXODUDPRQJWKHPEHLQJ
VXFKUHSUHVHQWDWLRQVDV'HDWKWKH'HYLOWKH/DVW-XGJPHQW F

7KHLGHDWKDWFDUGVZHUHILUVW³LQYHQWHG¶WRDPXVH&KDUOHV9,RI)UDQFH
LVQRZH[SORGHGDQGLWLVZRUWK\RIQRWHLQWKLVFRQQHFWLRQWKDWWKHLU
VXSSRVLWLWLRXV³LQYHQWRU´ZDV-DFTXHV*ULQJRQQHXUDQ$VWURORJHUDQG
4DEDOLVW)XUWKHUPRUHFDUGVZHUHNQRZQSULRUWRWKLVSHULRGDPRQJ
WKH,QGLDQVDQGWKH&KLQHVH(WWHLOODLQGHHGJLYHVLQRQHRIKLVWUDFWV
RQWKH7DURWDUHSUHVHQWDWLRQRIWKHP\VWLFDODUUDQJHPHQWRIWKHVH
FDUGVLQWKH7HPSOHRI3WDKDW0HPSKLVDQGKHIXUWKHUVD\V

³8SRQDWDEOHRUDOWDUDWWKHKHLJKWRIWKHEUHDVWRIWKH(J\SWLDQ
0DJXV RU+LHURSKDQW ZHUHRQRQHVLGHDERRNRUDVVHPEODJHRI
FDUGVRUSODWHVRIJROG WKH7DURW DQGRQWKHRWKHUDYDVHHWF´7KLV
LGHDLVIXUWKHUGLODWHGXSRQE\3&KULVWLDQ WKHGLVFLSOHRI(OLSKDV
/HYL LQKLV³+LVWRLUHGHOD0DJLH´WRZKLFK,VKDOOKDYHRFFDVLRQWR
UHIHUODWHU7KHJUHDWH[SRQHQWVRIWKH7DURW&RXUWGH*qEHOLQ/HYL
DQG(WWHLOODKDYHDOZD\VDVVLJQHGWRWKH7DURWD4DEDOLVWLFR(J\SWLDQ
RULJLQDQGWKLV,KDYHIRXQGFRQILUPHGLQP\RZQUHVHDUFKHVLQWRWKLV
VXEMHFWZKLFKKDYHH[WHQGHGRYHUVHYHUDO\HDUV

:+XJKHV:LOOVKLUHLQKLVUHPDUNVRQWKH*HQHUDO+LVWRU\RI
3OD\LQJ&DUGVVD\V³7KHPRVWDQFLHQWFDUGVZKLFKKDYHFRPHGRZQ
WRXVDUHRIWKH7DURW¶VFKDUDFWHU7KHVHDUHWKHIRXUFDUGVRIWKH0XVpH
&RUUHUDW9HQLFHWKHVHYHQWHHQSLHFHVRIWKH3DULV&DELQHW
HUURQHRXVO\RIWHQFDOOHGWKH*ULQJRQQHXURU&KDUOHV9,FDUGVRI
 ILYH9HQHWLDQ7DURWVRIWKHILIWHHQWKFHQWXU\LQWKHRSLQLRQRI
VRPHQRWRIDQHDUOLHUGDWHWKDQDQGWKHVHULHVRIFDUGVEHORQJLQJ
WRD0LQFKLDWHVHWLQWKHSRVVHVVLRQRIWKH&RXQWHVV$XUHOLD9LVFRQWL
*RQ]DJDDW0LODQZKHQ&LFRJQDUDZURWH´

:$&KDWWRLQKLV³+LVWRU\RI3OD\LQJ&DUGV´VD\VWKDWFDUGVZHUH
LQYHQWHGLQ&KLQDDVHDUO\DV$'LQWKHUHLJQRI6HXQ+RIRU
WKHDPXVHPHQWRIKLVQXPHURXVFRQFXELQHV

-)9DLOODQWLQ³/HV5RPHVKLVWRLUHYUDLHGHVYUDLHV%RKpPLHQV´
3DULVVD\VWKDWWKH&KLQHVHKDYHDGUDZLQJGLYLGHGLQWR
FRPSDUWPHQWVRUVHULHVEDVHGRQFRPELQDWLRQVRIWKHQXPEHUL>L@³,W
VRFORVHO\UHVHPEOHVWKH7DURWWKDWWKHIRXUVXLWVRIWKHODWWHURFFXS\
LWVILUVWIRXUFROXPQVRIWKHWZHQW\RQHDWRXWVIRXUWHHQRFFXS\WKH
ILIWKFROXPQDQGWKHVHYHQRWKHUDWRXWVWKHVL[WKFROXPQ7KLVVL[WK
FROXPQRIVHYHQDWRXWVLVWKDWRIWKHVL[GD\VRIWKHZHHNRIFUHDWLRQ
1RZDFFRUGLQJWRWKH&KLQHVHWKLVUHSUHVHQWDWLRQEHORQJVWRWKHILUVW
DJHVRIWKHLUHPSLUHWRWKHGU\LQJXSRIWKHZDWHUVRIWKHGHOXJHE\
O$2LWPD\EHFRQFOXGHGWKHUHIRUHWKDWLWLVDQRULJLQDORUDFRS\RI
WKH7DURWDQGXQGHUDQ\FLUFXPVWDQFHVWKDWWKHODWWHULVRIDQRULJLQ
DQWHULRUWR0RVHVWKDWLWEHORQJVWRWKHEHJLQQLQJRIRXUWLPHWRWKH
HSRFKRIWKHSUHSDUDWLRQRIWKH=RGLDFDQGFRQVHTXHQWO\WKDWLWPXVW
RZQ\HDUVRIH[LVWHQFH´

%XWQRWZLWKVWDQGLQJWKHDSSDUHQWDXGDFLW\RIWKLVODWWHUVWDWHPHQWLW
PXVWEHHYLGHQWRQUHIOHFWLRQWKDWWKH7DURWFRQVLVWLQJDVLWGRHVRI
WKHWHQQXPEHUVRIWKHGHFLPDOVFDOHFRXQWHUFKDQJHGZLWKWKHWHWUDG
DQGRIDKLHURJO\SKLFDOSKDEHWRIWZHQW\WZRP\VWLFV\PEROVPXVWEH
UHOHJDWHGWRIDUHDUOLHUSHULRGLQWKHKLVWRU\RIWKHZRUOGWKDQWKDW
XVXDOO\DVVLJQHGWRWKHLQWURGXFWLRQRIFDUGVLQWR(XURSHDQGZHPD\
WDNHWKHIDFWRIWKH7DURWEHLQJWKHRULJLQRIWKHPRGHUQFDUGDVEHLQJ
QRZSUHWW\ZHOOHVWDEOLVKHGE\JHQHUDOFRQVHQVXVRI2SLQLRQ

,WZDV&RXUWGH*qEHOLQZKRLQKLV³0RQGH3ULPLWLI´ 3DULV 
ZURWH³:HUHZHWRKHDUWKDWWKHUHH[LVWVLQRXUGD\:RUNRIWKH
$QFLHQW(J\SWLDQVRQHRIWKHLUERRNVZKLFKKDGHVFDSHGWKHIODPHV
ZKLFKGHYRXUHGWKHLUVXSHUEOLEUDULHVDQGZKLFKFRQWDLQVWKHLUSXUHVW
GRFWULQHRQPRVWLQWHUHVWLQJVXEMHFWVHYHU\RQHZRXOGGRXEWOHVVEH
DQ[LRXVWRDFTXLUHWKHNQRZOHGJHRIVRYDOXDEOHDQGH[WUDRUGLQDU\D
ZRUN:HUHZHWRDGGWKDWWKLVERRNLVZLGHO\VSUHDGWKURXJKDODUJH
SDUWRI(XURSHDQGWKDWIRUVHYHUDOFHQWXULHVLWKDVEHHQDFFHVVLEOHWR
HYHU\RQHZRXOGQRWLWEHVWLOOPRUHVXUSULVLQJ"$QGZRXOGQRWWKDW
VXUSULVHEHDWLWVKHLJKWZHUHLWDVVHUWHGWKDWSHRSOHKDYHQHYHU
VXVSHFWHGWKDWLWZDV(J\SWLDQWKDWWKH\SRVVHVVLWLQVXFKDPDQQHU
WKDWWKH\FDQKDUGO\EHVDLGWRSRVVHVVLWDWDOOWKDWQRRQHKDVHYHU
DWWHPSWHGWRGHFLSKHUDVLQJOHOHDIDQGWKDWWKHRXWFRPHRIDUHFRQGLWH
ZLVGRPLVUHJDUGHGDVDPDVVRIH[WUDYDJDQWGHVLJQVZKLFKPHDQ
QRWKLQJLQWKHPVHOYHV":RXOGQRWSHRSOHWKLQNWKDWRQHZDVWU\LQJWR
DPXVHRQHVHOIZLWKDQGWRSOD\XSRQWKHFUHGXOLW\RIRQH¶VKHDUHUV"

³<HWWKLVLVDWUXHIDFW7KLV(J\SWLDQERRNWKHVROHUHPDLQVRIWKHLU
VXSHUEOLEUDULHVH[LVWVWRRXUGD\LWLVHYHQVRFRPPRQWKDWQRVDYDQW
KDVGHVLJQHGWRWURXEOHKLPVHOIDERXWLWQRRQHEHIRUHP\VHOIKDYLQJ
VXVSHFWHGLWVLOOXVWULRXVRULJLQ7KLVERRNLVFRPSRVHGRIVHYHQW\
VHYHQOHDYHVRULOOXVWUDWLRQVRUUDWKHURIVHYHQW\HLJKWGLYLGHGLQWR
ILYHFODVVHVZKLFKHDFKSUHVHQWREMHFWVDVYDULRXVDVWKH\DUHDPXVLQJ
DQGLQVWUXFWLYH,QRQHZRUGWKLVERRNLVWKH3$&.2)7$527
&$5'6´

/HWXVQRZH[DPLQHWKHZRUG7$527RU7$52DQGGLVFRYHULIZH
FDQLWVWUXHGHULYDWLRQDQGPHDQLQJ&RXUWGH*qEHOLQVWDWHVWKDWWKHUH
DUHWKUHHZRUGVRI2ULHQWDORULJLQSUHVHUYHGLQWKHQRPHQFODWXUHRIWKH
3DFN7KHVHDUH7$520$7DQG3$*$'7DURKHVD\VLVSXUH
(J\SWLDQIURP7$53DWKDQG52526RU52*5R\DO²WKH5R\DO
3DWKRI/LIH0$7LV2ULHQWDODQGPHDQVRYHUSRZHUHGPXUGHUHG
FUDFNEUDLQHGZKLOH3$*$'KHDGGVLVDOVR2ULHQWDOIRUP3$*
FKLHIRUPDVWHUDQG*$')RUWXQH9DLODQWVD\V³7KHJUHDWGLYLQLW\
$VKWDURWK$VWDURWKLVQRRWKHUWKDQWKH,QGR7DUWDU7DQWDUDWKH
7DURWWKH=RGLDF´0\GHULYDWLRQRIWKHZRUGZKLFK,KDYHQHYHU
IRXQGJLYHQE\DQ\DXWKRULVIURPWKHDQFLHQWKLHURJO\SKLFDO(J\SWLDQ
ZRUG³WkUX´WRUHTXLUHDQDQVZHURUWRFRQVXOWHUJRWKDWZKLFKLV
FRQVXOWHGRUIURPZKLFKDQDQVZHULVUHTXLUHG7KLVDSSHDUVWRPHWR
EHWKHFRUUHFWRULJLQRIWKHZRUGZKLOHWKHVHFRQGWLVDQ(J\SWLDQ
KLHURJO\SKLFILQDOZKLFKLVDGGHGWRGHQRWHWKHIHPLQLQHJHQGHU7KH
IROORZLQJDUHLQWHUHVWLQJPHWDWKHVHVRIWKHOHWWHUVRI7$52725$
+HEUHZ  /DZ752$ +HEUHZ  *DWH527$ /DWLQ  ZKHHO
25$7 /DWLQ  LWVSHDNVDUJXHVRUHQWUHDWV7$25 (J\SWLDQ  
7lXUWKH*RGGHVVRI'DUNQHVV$725 (J\SWLDQ  $WKRUWKH
(J\SWLDQ9HQXV$0U/XPOH\WHOOVPHWKDWWKHUHLVD=HQGZRUG
³WDULVN´PHDQLQJ³WRUHTXLUHDQDQVZHU´

7KHUHDUH,WDOLDQ6SDQLVKDQG*HUPDQ7DURWSDFNVDQGVLQFHWKHWLPH
RI(WWHLOOD)UHQFKDOVREXWWKHVHODWWHUDUHQRWVRZHOODGDSWHGIRU
RFFXOWVWXG\RZLQJWR(WWHLOOD¶VDWWHPSWHG³FRUUHFWLRQV´RIWKH
V\PEROLVP7KH,WDOLDQDUHGHFLGHGO\WKHEHVWIRUGLYLQDWLRQDQG
SUDFWLFDORFFXOWSXUSRVHVDQG,VKDOOWKHUHIRUHXVHWKHPDVWKHEDVLV
RIWKHSUHVHQWWUHDWLVH8QIRUWXQDWHO\WKHROGIDVKLRQHGVLQJOHKHDGHG
FDUGVDUHREVROHWHQRZDQGWKHRQO\RQHVPDGHDUHGRXEOHKHDGHG
ZKLFKFLUFXPVWDQFHDOWHUVWKHV\PEROLVPLQDIHZLQVWDQFHV,VKDOO
WKHUHIRUHZKHUHYHUQHFHVVDU\GHVFULEHWKHRPLWWHGSRUWLRQRIWKH
GHVLJQHQFORVLQJLWZLWKLQEUDFNHWVWRPDUNWKHVDPH

$V,EHIRUHREVHUYHGWKH7DURWSDFNFRQVLVWVRIVHYHQW\HLJKWFDUGV²
QDPHO\IRXUVXLWVRIIRXUWHHQFDUGVHDFKDQGWZHQW\WZRV\PEROLF
QXPEHUHGWUXPSV7KHIRXUVXLWVDUH²

,WDOLDQ )UHQFK (QJOLVK $QVZHULQJWR


%DVWRQL %kWRQV :DQGV6FHSWUHVRU 'LDPRQGV
&OXEV
&RSSp &RXSHV &XSV&KDOLFHVRU +HDUWV
*REOHWV
6SDGp eSpHV 6ZRUGV 6SDGHV
'HQDUL 'HQLHUV 0RQH\&LUFOHVRU &OXEV
3HQWDFOHV

(DFKVXLWFRQVLVWVRI$FH'HXFH7KUHH)RXU)LYH6L[6HYHQ(LJKW
1LQH7HQ)DQWLRU9DOHW .QDYH&DYDOOR .QLJKWRU+RUVHPDQ
'DPDRU5HLQH 4XHHQ5H .LQJ

7KH.LQJVLQHDFKLQVWDQFHZHDUDFDSRIPDLQWHQDQFHEHQHDWKWKH
FURZQWKH4XHHQVZHDUWKHFURZQRQO\7KH4XHHQRI3HQWDFOHVDQG
WKH.QDYHRI6FHSWUHVDUHWKHRQO\RQHVUHSUHVHQWHGLQSURILOH,QWKH
VXLWRI6FHSWUHVWKH.LQJEHDUVDZDQGDNLQWRWKDWUHSUHVHQWHGRQWKH
VPDOOFDUGVRIWKHVXLWZKLOHWKHRWKHUWKUHHKRQRXUVEHDUDEOXGJHRQ
VLPLODUWRWKDWZKLFKLVVKRZQIRUWKHDFH,QWKHVXLWRIFXSVWKDWRQO\
ZKLFKLVKHOGE\WKH4XHHQLVFRYHUHGWKXVVKRZLQJWKHHVVHQWLDOO\
IHPLQLQHSURSHUWLHVRIWKLVVXLWZKLOHWKHVFHSWUHKHOGE\WKH.LQJRI
WKHSUHFHGLQJVXLWVKRZVLWVPRUHPDVFXOLQHFKDUDFWHU

,IZHH[DPLQHWKHVPDOOFDUGVFDUHIXOO\ZHVKDOOEHVWUXFNDRQFHE\
WKHFRPSDUDWLYHVLPLODULWLHVRISDWWHUQRIWKH6FHSWUHVDQGWKH6ZRUGV
ZKLFKDUHRQO\GLVWLQJXLVKHGIURPHDFKRWKHUE\WKHIRUPHUEHLQJ
VWUDLJKWDQGWKHODWWHUEHLQJFXUYHG:HVKDOODOVRQRWLFHWKDWWKH
'HXFHVKDYHSHFXOLDULWLHVRIWKHLURZQZKLFKGLVWLQJXLVKWKHPIURP
WKHUHVWRIWKHVXLW7KH'HXFHRI6FHSWUHVIRUPVDFURVVZLWKWZRURVHV
DQGWZROLOLHVLQWKHRSSRVLWHDQJOHVWKH&URVVEHWZHHQWKH5RVHRI
6KDURQDQGWKH/LO\RIWKH9DOOH\7KH'HXFHRI&XSVVKRZVD
WHVVHODWHGSDYHPHQWRUFORWKZKHUHRQWKHFXSVVWDQGEHWZHHQWKHPLV
DVSHFLHVRI&DGXFHXVZKRVHVHUSHQWVDUHUHSODFHGE\/LRQKHDGHG
IROLDWLRQVZKLFKUHFDOOWKH&KQXSKLV6HUSHQWRIWKH*QRVWLFVDQG
FHUWDLQIDPLOLDUIRUPVRIWKH(OHPHQWDO6SLULWVSUDFWLFDORFFXOWLVWVZLOO
NQRZWRZKDW,DOOXGH7KH'HXFHRI6ZRUGVIRUPVDVSHFLHVRI9HVLFD
SLVFLVHQFORVLQJDP\VWLFURVHRIWKHSULPDU\FRORXUV7KH'HXFHRI
3HQWDFOHVLVERXQGWRJHWKHUE\DFRQWLQXRXVEDQGLQVXFKDPDQQHUDV
WRIRUPDILJXUHDQGUHSUHVHQWVWKHRQHDVEHLQJWKHUHIOHFWLRQRIWKH
RWKHUDVWKH8QLYHUVHLVWKDWRIWKH'LYLQH,GHD

7KHIRXU$FHVVWDQGRXWE\WKHPVHOYHVIURPWKHUHVWRIWKHSDFNHDFK
IRUPLQJDVLWZHUHWKH.H\RILWVUHVSHFWLYHVXLW7KH$FHRI6FHSWUHV
UHFDOOVWKH&OXERI+HUFXOHVLWLVVXUURXQGHGE\HLJKWGHWDFKHGOHDYHV
ZKRVHVKDSHUHFDOOVWKDWRIWKH+HEUHZ/HWWHU<RGRU,DQGLV
FURZQHGZLWKWKH6\PERORIWKH7ULDGUHSUHVHQWHGE\WKHWKUHHORSSHG
EUDQFKHVLWLVWKH6\PERORI$OPLJKW\6WUHQJWKZLWKLQWKHFXEHRIWKH
8QLYHUVHZKLFKODWWHULVVKRZQE\WKHHLJKWOHDYHVIRUHLJKWLVWKHILUVW
FXELFDOQXPEHU7KH$FHRI&XSVLVRI(J\SWLDQRULJLQZKLFKFDQEH
PRUHHDVLO\VHHQLQWKH6SDQLVK7DURW7KHILJXUHOLNHDQLQYHUWHG0
RQLWVIURQWLVDOOWKDWUHPDLQVRIWKH(J\SWLDQWZLQ6HUSHQWVZKLFK
RULJLQDOO\GHFRUDWHGLW,WUHSUHVHQWVWKH:DWHUVRI&UHDWLRQLQWKHILUVW
FKDSWHURI*HQHVLV,WLVWKH6\PERORIWKH3RZHUZKLFKUHFHLYHVDQG
PRGLILHV7KH$FHRI6ZRUGVLVD6ZRUGVXUPRXQWHGE\D&URZQIURP
ZKLFKGHSHQGRQHLWKHUVLGHDQROLYHDQGDSDOPEUDQFKV\PEROLFRI
PHUF\DQGVHYHULW\DURXQGLWDUH6L[+HEUHZ<RGVUHFDOOLQJWKH6L[
GD\VRIWKH0RVDLF&UHDWLRQ,WLVWKH6\PERORIWKDW-XVWLFHZKLFK
PDLQWDLQVWKH:RUOGLQRUGHUWKHHTXLOLEULXPRI0HUF\DQG6HYHULW\
7KH$FHRI3HQWDFOHVUHSUHVHQWV(WHUQDO6\QWKHVLVWKHJUHDWZKROHRI
WKHYLVLEOH8QLYHUVHWKH5HDOLVDWLRQRIFRXQWHUEDODQFHGSRZHU

7KHWUXPSVDUHWKHKLHURJO\SKLFV\PEROVRIWKHRFFXOWPHDQLQJVRI
WKHOHWWHUVRIWKH+HEUHZDOSKDEHW7KH\DUHQXPEHUHGIURPWR
LQFOXVLYH 6HH7DEOH« 

1R ,WDOLDQ )UHQFK  (QJOLVK +HEUHZ


/HWWHU
 ,O%DJDWWR /H%DWHOHXU 7KH-XJJOHURU $OHSK $
3$*$'  0DJLFLDQ
 /D3DSHVVD /D3DSHVVH 7KH+LJK3ULHVWHVVRU %HWK %
)HPDOH3RSH
 /¶,PSHUDWULFH /¶,PSpUDWULFH 7KH(PSUHVV *LPHO *
 /¶,PSHUDWRUH /¶(PSHUHXU 7KH(PSHURU 'DOHWK '
 ,O3DSD /H3DSH 7KH+LHURSKDQWRU +H +
3RSH
 *OL$PDQWL /¶$PRXUHX[ 7KH/RYHUV 9DX 9
 ,O&DUUR /H&KDULRW 7KH&KDULRW =DLQ =
 /D*LXVWL]LD /D-XVWLFH -XVWLFH &KHWK &+
 /¶(UHPLWD /¶(UPLWH 7KH+HUPLW 7HWK 7
 5RWD'L)RUWXQD
/D5RXHGH 7KH:KHHORI)RUWXQH <RG ,
)RUWXQH
 /D)RU]D  /D)RUFH 6WUHQJWK)RUWLWXGH .DSK .
 ,O3HQGXWR /H3HQGX 7KH+DQJHG0DQ /DPHG /
 ,O0RUWH /D0RUW 'HDWK 0HP 0
 /D7HPSHUDQ]D /D7HPSHUDQFH 7HPSHUDQFH 1XQ 1
 ,O'LDYROR  /H'LDEOH 7KH'HYLO 6DPHFK 6
 /D7RUUH /H0DLVRQ'LHX 7KH/LJKWQLQJVWUXFN $\LQ 2
7RZHU
 /H6WHOOH  /¶(WRLOH 7KH6WDU 3H 3
 /D/XQD  /D/XQH 7KH0RRQ 7]DGGL 7]
 ,O6ROH  /H6ROHLO 7KH6XQ 4RSK 4
 /¶$QJHOR /H-XJHPHQW 7KH/DVW-XGJPHQW 5HVK 5
 ,O0DWWR 0$7  /H)RX 7KH)RROLVK0DQ 6KLQ 6+
 ,O0RQGR /H0RQGH 7KH8QLYHUVH 7DX 7+

,ZLOOQRZGHVFULEHFDUHIXOO\WKHV\PEROLVPRIHDFKRIWKHVH
KLHURJO\SKLFDONH\V

7KH-XJJOHURU0DJLFLDQ%HIRUHDWDEOHFRYHUHGZLWKWKH
DSSOLDQFHVRIKLVDUWVWDQGVWKHILJXUHRIDMXJJOHURQHKDQGXSUDLVHG
KROGLQJDZDQG LQVRPHSDFNVDFXS WKHRWKHUSRLQWLQJGRZQZDUGV
+HZHDUVDFDSRIPDLQWHQDQFHOLNHWKDWRIWKHNLQJVZKRVHZLGHEULP
IRUPVDVRUWRIDXUHROHURXQGKLVKHDG+LVERG\DQGDUPVIRUPWKH
VKDSHRIWKH+HEUHZOHWWHU$OHSKWRZKLFKWKLVFDUGFRUUHVSRQGV+H
V\PEROLVHV:LOO

7KH+LJK3ULHVWHVVRU)HPDOH3RSH$ZRPDQFURZQHGZLWKD
KLJKPLWUHRUWLDUD KHUKHDGHQFLUFOHGE\DYHLO DVWROH RUDVRODU
FURVV XSRQKHUEUHDVWDQGWKH%RRNRI6FLHQFHRSHQLQKHUKDQG6KH
UHSUHVHQWV6FLHQFH:LVGRPRU.QRZOHGJH

7KH(PSUHVV$ZLQJHGDQGFURZQHGZRPDQVHDWHGXSRQDWKURQH
KDYLQJLQRQHKDQGDVFHSWUHEHDULQJDJOREHVXUPRXQWHGE\DFURVV
ZKLOHVKHUHVWVWKHRWKHUXSRQDVKLHOGZLWKDQHDJOHEOD]RQHGWKHUHLQ
RQZKRVHEUHDVWLVWKHFURVV6KHLVWKH6\PERORI$FWLRQWKHUHVXOWRI
WKHXQLRQRI6FLHQFHDQG:LOO

7KH(PSHURU+HLVFURZQHG DQGOHDQLQJDJDLQVWDWKURQHKLVOHJV
IRUPDFURVVDQGEHVLGHKLPEHQHDWKKLVOHIWKDQGLVDVKLHOG
EOD]RQHGZLWKDQHDJOH ,QKLVULJKWKDQGKHEHDUVDVFHSWUHVLPLODUWR
WKDWRIWKH(PSUHVV+LVERG\DQGDUPVIRUPDWULDQJOHRIZKLFKKLV
KHDGLVWKHDSH[VRWKDWWKHZKROHILJXUHUHSUHVHQWVDWULDQJOHDERYHD
FURVV+HUHSUHVHQWV5HDOLVDWLRQ

7KH+LHURSKDQWRU3RSH+HLVFURZQHGZLWKWKHSDSDOWLDUDDQG
VHDWHGEHWZHHQWKHWZRSLOODUVRI+HUPHVDQGRI6RORPRQZLWKKLV
ULJKWKDQGKHPDNHVWKHVLJQRIHVRWHULVPDQGZLWKKLVOHIWKHOHDQV
XSRQDVWDIIVXUPRXQWHGE\DWULSOHFURVV %HIRUHKLPNQHHOWZR
PLQLVWHUV +HLVWKHV\PERORI0HUF\DQG%HQHILFHQFH

7KH/RYHUV7KLVLVXVXDOO\GHVFULEHGDVUHSUHVHQWLQJ0DQEHWZHHQ
9LFHDQG9LUWXHZKLOHDZLQJHGJHQLXVWKUHDWHQV9LFHZLWKKLVGDUW
%XW,DPUDWKHULQFOLQHGWRWKHRSLQLRQWKDWLWUHSUHVHQWVWKH
4DEDOLVWLFDO0LFURSURVRSXVEHWZHHQ%LQDKDQG0DONXWK VHHP\
.DEEDODK8QYHLOHG ZKLOHWKHILJXUHDERYHVKRZVWKH,QIOXHQFH
GHVFHQGLQJIURP.HWKHU,WLVXVXDOO\FRQVLGHUHGWRPHDQ3URRIRU
7ULDOEXW,DPLQFOLQHGWRVXJJHVW:LVH'LVSRVLWLRQDVLWVVLJQLILFDWLRQ

7KH&KDULRW7KLVLVDPRVWFRPSOLFDWHGDQGLPSRUWDQWV\PERO
ZKLFKKDVEHHQUHVWRUHGE\(OLSKDV/HYL,WUHSUHVHQWVD&RQTXHURU
FURZQHGDQGEHDULQJDVFHSWUHULGLQJLQDFXELFDOFKDULRWVXUPRXQWHG
E\IRXUFROXPQVDQGDFDQRS\DQGGUDZQE\WZRKRUVHVRQHRIZKLFK
ORRNVVWUDLJKWIRUZDUGZKLOHWKHRWKHUWXUQVKLVKHDGWRZDUGVKLP
7ZRZKHHOVDUHVKRZQLQWKHFRPSOHWHVLQJOHKHDGHGILJXUH ,W
UHSUHVHQWV7ULXPSKDULG9LFWRU\RI-XVWLFHDQG-XGJPHQW

-XVWLFH$ZRPDQFURZQHGDQGVHDWHGRQDWKURQH EHWZHHQWZR
FROXPQV KROGLQJLQKHUULJKWKDQGDQXSULJKWVZRUGDQGLQKHUOHIW
WKHVFDOHV6KHV\PEROLVHV(TXLOLEULXPDQG-XVWLFH

7KH+HUPLW$QROGDQGEHDUGHGPDQZUDSSHGLQDPDQWOHDQGZLWK
KLVKHDGFRYHUHGZLWKDFRZOEHDULQJLQKLVULJKWKDQGWKHODQWHUQRI
RFFXOWVFLHQFHZKLOHLQKLVOHIWKHKROGVKLVPDJLFZDQGKDOIKLGGHQ
EHQHDWKKLVFORDN+HLV3UXGHQFH

7KH:KHHORI)RUWXQH$ZKHHORIVHYHQVSRNHV WKHWZRKDOYHVRI
WKHGRXEOHKHDGHGFDUGVPDNHLWHLJKWVSRNHVZKLFKLVLQFRUUHFW 
UHYROYLQJ EHWZHHQWZRXSULJKWV 2QWKHDVFHQGLQJVLGHLVDQDQLPDO
DVFHQGLQJDQGRQWKHGHVFHQGLQJVLGHLVDVRUWRIPRQNH\GHVFHQGLQJ
ERWKIRUPVDUHERXQGWRWKHZKHHO$ERYHLWLVWKHIRUPRIDQDQJHO RU
DVSKLQ[LQVRPH KROGLQJDVZRUGLQRQHKDQGDQGDFURZQLQWKH
RWKHU7KLVYHU\FRPSOLFDWHGV\PEROLVPXFKGLVILJXUHGDQGKDVEHHQ
ZHOOUHVWRUHGE\/HYL,WV\PEROLVHV)RUWXQHJRRGRUEDG

6WUHQJWKRU)RUWLWXGH$ZRPDQFURZQHGZLWKFURZQDQGFDSRI
PDLQWHQDQFHZKRFDOPO\DQG:LWKRXWHIIRUWFORVHVWKHMDZVRID
IXULRXVOLRQ6KHUHSUHVHQWV6WUHQJWK

7KH+DQJHG0DQ7KLVH[WUDRUGLQDU\V\PEROLVDOPRVW
XQLQWHOOLJLEOHLQWKHGRXEOHKHDGHGFDUGV3URSHUO\LWUHSUHVHQWVDPDQ
KXQJKHDGGRZQZDUGVIURPDVRUWRIJLEEHWE\RQHIRRW KLVKDQGVDUH
ERXQGEHKLQGKLVEDFNLQVXFKDPDQQHUWKDWKLVERG\IRUPVDWULDQJOH
ZLWKWKHSRLQWGRZQZDUGV DQGKLVOHJVDFURVVDERYHLW 7ZRVDFNVRU
ZHLJKWVDUHDWWDFKHGWRKLVDUPSLWV +HV\PEROLVHV6DFULILFH
'HDWK$VNHOHWRQDUPHGZLWKD6F\WKH ZKHUHZLWKKHPRZVGRZQ
KHDGVLQDPHDGRZOLNHJUDVV +HVLJQLILHV7UDQVIRUPDWLRQRU
&KDQJH

7HPSHUDQFH$QDQJHOZLWKWKHVLJQRIWKH6XQRQKHUEURZ
3RXULQJOLTXLGIURPRQHYHVVHOLQWRDQRWKHU6KHUHSUHVHQWV
&RPELQDWLRQ

7KH'HYLO$KRUQHGDQGZLQJHGGHPRQZLWKHDJOH¶VFODZV
VWDQGLQJRQDQDOWDUWRZKLFKWZRVPDOOHUGHYLOVDUHERXQGE\DFROODU
DQGFRUG ,QKLVOHIWKDQGKHEHDUVDIODPHKHDGHGVFHSWUH+HLVWKH
LPDJHRI)DWHRU)DWDOLW\JRRGRUHYLO

7KH/LJKWQLQJVWUXFN7RZHU$7RZHUZKRVH8SSHUSDUWLVOLNHD
FURZQVWUXFNE\DOLJKWQLQJIODVK 7ZRPHQIDOOKHDGORQJIURPLW
2QHRIZKRPLVLQVXFKDQDWWLWXGHDVWRIRUPD+HEUHZOHWWHU$\LQ 
6SDUNVDQGGHEULVDUHIDOOLQJ,WVKRZV5XLQ'LVUXSWLRQ

7KH6WDU$QXGHIHPDOHILJXUHSRXUVZDWHUXSRQWKHHDUWKIURP
WZRYDVHV,QWKHKHDYHQVDERYHKHUVKLQHVWKH%OD]LQJ6WDURIWKH
0DJL VXUURXQGHGE\VHYHQRWKHUV WUHHVDQGSODQWVJURZEHQHDWKKHU
PDJLFLQIOXHQFH DQGRQRQHWKHEXWWHUIO\RI3V\FKHDOLJKWV 6KHLVWKH
VWDURI+RSH

7KH0RRQ7KHPRRQVKLQLQJLQWKHKHDYHQVGURSVRIGHZIDOOLQJ
DZROIDQGDGRJKRZOLQJDWWKH0RRQDQGKDOWHGDWWKHIRRWRIWZR
WRZHUVDSDWKZKLFKORVHVLWVHOILQWKHKRUL]RQ DQGLVVSULQNOHGZLWK
GURSVRIEORRGDFUD\ILVKHPEOHPDWLFRIWKHVLJQ&DQFHUUXOHGRYHUE\
WKH0RRQFUDZOVWKURXJKZDWHULQWKHIRUHJURXQGWRZDUGVWKHODQG ,W
V\PEROLVHV7ZLOLJKW'HFHSWLRQDQG(UURU

7KH6XQ7KH6XQVHQGLQJGRZQKLVUD\VXSRQWZRFKLOGUHQZKR
VXJJHVWWKHVLJQ*HPLQL %HKLQGWKHPLVDORZZDOO ,WVLJQLILHV
(DUWKO\+DSSLQHVV

7KH/DVW-XGJPHQW$Q$QJHOLQWKHKHDYHQVEORZLQJDWUXPSHW
WRZKLFKDVWDQGDUGZLWKDFURVVWKHUHRQLVDWWDFKHG7KH'HDGULVH
IURPWKHLUWRPEV,WVLJQLILHV5HQHZDO5HVXOW

7KH)RROLVK0DQ$PDQZLWKDIRRO¶VFDSGUHVVHGOLNHDMHVWHU
ZLWKDVWLFNDQGEXQGOHRYHUKLVVKRXOGHU%HIRUHKLPLVWKHEXWWHUIO\RI
SOHDVXUHOXULQJKLPRQ ZKLOHLQVRPHSDFNVDWLJHULQRWKHUVDGRJ
DWWDFNVKLPIURPEHKLQG ,WVLJQLILHV)ROO\([SLDWLRQ

7KH8QLYHUVH:LWKLQDIORZHU\ZUHDWKLVDIHPDOHILJXUHQXGH
VDYHIRUDOLJKWVFDUI6KHUHSUHVHQWV1DWXUHDQGWKH'LYLQH3UHVHQFH
WKHUHLQ,QHDFKKDQGVKHVKRXOGEHDUDZDQG$WWKHIRXUDQJOHVRIWKH
FDUGDUHWKHIRXUFKHUXELFDQLPDOVRIWKH$SRFDO\SVH$ERYHWKH(DJOH
DQGWKH0DQEHORZWKH/LRQDQGWKH%XOO,WUHSUHVHQWV&RPSOHWLRQ
5HZDUG
7KXVWKHZKROHVHULHVRIWKHWZHQW\WZRWUXPSVZLOOJLYHDFRQQHFWHG
VHQWHQFHZKLFKLVFDSDEOHRIEHLQJUHDGWKXV²7KH+XPDQ:LOO  
HQOLJKWHQHGE\6FLHQFH  DQGPDQLIHVWHGE\

$FWLRQ  VKRXOGILQGLWV5HDOLVDWLRQ  LQGHHGVRI0HUF\DQG


%HQHILFHQFH  7KH:LVH'LVSRVLWLRQ  RIWKLVZLOOJLYHKLP9LFWRU\
 WKURXJK(TXLOLEULXP  DQG3UXGHQFH  RYHUWKHIOXFWXDWLRQVRI
)RUWXQH  )RUWLWXGH  VDQFWLILHGE\6DFULILFHRI6HOI  ZLOO
WULXPSKRYHU'HDWKLWVHOI  DQGWKXVD:LVH&RPELQDWLRQ  ZLOO
HQDEOHKLPWRGHI\)DWH  ,QHDFK0LVIRUWXQH  KHZLOOVHHWKH
6WDURI+RSH  VKLQHWKURXJKWKHWZLOLJKWRI'HFHSWLRQ  DQG
XOWLPDWH+DSSLQHVV  ZLOOEHWKH5HVXOW  )ROO\  RQWKHRWKHU
KDQGZLOOEULQJDERXWDQHYLO5HZDUG  

7RSUHSDUHWKHSDFNIRU)RUWXQHWHOOLQJZULWHDWWKHWRSRIHDFKFDUGLWV
QXPEHUDQGVLJQLILFDWLRQZKHQLQLWVSURSHUSRVLWLRQDQGDWWKHERWWRP
LWVPHDQLQJZKHQUHYHUVHG7RIDFLOLWDWHWKLVDQGWRDVVLVWLQUHDGLQJ
WKHP,KHUHDSSHQGDOLVWRIWKHFDUGVZLWKWKHPHDQLQJVZKLFK,
WKLQNZLOOEHIRXQGWRDQVZHUDOOSUDFWLFDOSXUSRVHV5PHDQV
5HYHUVHG

0($1,1*62)7+(&$5'6

7KH-XJJOHU²:LOO:LOO3RZHU'H[WHULW\5:LOODSSOLHGWRHYLO
HQGV:HDNQHVVRI:LOO&XQQLQJ.QDYLVKQHVV

7KH+LJK3ULHVWHVV²6FLHQFH:LVGRP.QRZOHGJH(GXFDWLRQ5
&RQFHLW,JQRUDQFH8QVNLOIXOQHVV6XSHUILFLDO.QRZOHGJH

7KH(PSUHVV²$FWLRQ3ODQ8QGHUWDNLQJ0RYHPHQWLQDPDWWHU
,QLWLDWLYH5,QDFWLRQ)ULWWHULQJDZD\RISRZHU:DQWRI
&RQFHQWUDWLRQ9DFLOODWLRQ

7KH(PSHURU²5HDOLVDWLRQ(IIHFW'HYHORSPHQW56WRSSDJH
&KHFN,PPDWXUH8QULSH

7KH+LHURSKDQWRU3RSH0HUF\%HQHILFHQFH.LQGQHVV*RRGQHVV
52YHUNLQGQHVVZHDNQHVV)RROLVKH[HUFLVHRIJHQHURVLW\

7KH/RYHUV²:LVH'LVSRVLWLRQV3URRI7ULDOV6XUPRXQWHG5
8QZLVH3ODQV)DLOXUHZKHQSXWWRWKHWHVW

7KH&KDULRW²7ULXPSK9LFWRU\2YHUFRPLQJREVWDFOHV5
2YHUWKURZQ&RQTXHUHGE\2EVWDFOHVDWWKHODVWPRPHQW

7KHPLVRU-XVWLFH(TXLOLEULXP%DODQFH-XVWLFH5%LJRWU\:DQW
RI%DODQFH$EXVHRI-XVWLFH2YHUVHYHULW\,QHTXDOLW\%LDV

7KH+HUPLW²3UXGHQFH&DXWLRQ'HOLEHUDWLRQ52YHUSUXGHQFH
7LPRURXVQHVV)HDU
7KH:KHHORI)RUWXQH²*RRG)RUWXQH6XFFHVV8QH[SHFWHG
/XFN5,OO)RUWXQH)DLOXUH8QH[SHFWHG,OO/XFN

6WUHQJWKRU)RUWLWXGH²3RZHU0LJKW)RUFH6WUHQJWK)RUWLWXGH
5$EXVHRI3RZHU2YHUEHDULQJQHVV:DQWRI)RUWLWXGH

7KH+DQJHG0DQ²6HOIVDFULILFH6DFULILFH'HYRWLRQ%RXQG5
6HOILVKQHVV8QERXQG3DUWLDOVDFULILFH

'HDWK²'HDWK&KDQJH7UDQVIRUPDWLRQ$OWHUDWLRQIRUWKHZRUVH
5'HDWKMXVWHVFDSHG3DUWLDOFKDQJH$OWHUDWLRQIRUWKHEHWWHU

7HPSHUDQFH²&RPELQDWLRQ&RQIRUPDWLRQ8QLWLQJ5,OO
DGYLVHGFRPELQDWLRQV'LVXQLRQ&ODVKLQJLQWHUHVWV F

7KH'HYLO²)DWDOLW\IRU*RRG5)DWDOLW\IRU(YLO

7KH/LJKWQLQJVWUXFN7RZHU5XLQ'LVUXSWLRQ2YHUWKURZ/RVV
%DQNUXSWF\57KHVHLQDPRUHRUOHVVSDUWLDOGHJUHH

7KH6WDU²+RSH([SHFWDWLRQ%ULJKWSURPLVHV5+RSHVQRW
IXOILOOHG([SHFWDWLRQVGLVDSSRLQWHGRUIXOILOOHGLQDPLQRUGHJUHH

7KH0RRQ²7ZLOLJKW'HFHSWLRQ(UURU5)OXFWXDWLRQVOLJKW
'HFHSWLRQV7ULIOLQJ0LVWDNHV

7KH6XQ²+DSSLQHVV&RQWHQW-R\57KHVHLQDPLQRUGHJUHH

7KH/DVW-XGJPHQW²5HQHZDO5HVXOW'HWHUPLQDWLRQRID
0DWWHU53RVWSRQHPHQWRI5HVXOW'HOD\0DWWHUUHRSHQHGODWHU

7KH)RROLVK0DQ²)ROO\([SLDWLRQ:DYHULQJ5+HVLWDWLRQ
,QVWDELOLW\7URXEOHDULVLQJKHUHIURP

7KH8QLYHUVH²&RPSOHWLRQ*RRG5HZDUG5(YLO5HZDUGRU
5HFRPSHQVH

.LQJRI6FHSWUHV²0DQOLYLQJLQWKHFRXQWU\&RXQWU\*HQWOHPDQ
.QRZOHGJH(GXFDWLRQ5$QDWXUDOO\JRRGEXWVHYHUHPDQ&RXQVHO
$GYLFH'HOLEHUDWLRQ

4XHHQRI6FHSWUHV²:RPDQOLYLQJLQWKHFRXQWU\/DG\RIWKH
0DQRU/RYHRI0RQH\$YDULFH8VXU\5$JRRGDYLUWXRXV:RPDQ
EXWVWULFWDQGHFRQRPLFDO2EVWDFOHV5HVLVWDQFH2SSRVLWLRQ

.QLJKWRI6FHSWUHV²'HSDUWXUH6HSDUDWLRQ'LVXQLRQ5
5XSWXUH'LVFRUG4XDUUHO

.QDYHRI6FHSWUHV²$*RRG6WUDQJHU*RRG1HZV3OHDVXUH
6DWLVIDFWLRQ5,OO1HZV'LVSOHDVXUH&KDJULQ:RUU\
7HQRI6FHSWUHV²&RQILGHQFH6HFXULW\+RQRXU*RRG)DLWK5
7UHDFKHU\6XEWHUIXJH'XSOLFLW\%DU

1LQHRI6FHSWUHV²2UGHU'LVFLSOLQH*RRG$UUDQJHPHQW
'LVSRVLWLRQ52EVWDFOHV&URVVHV'HOD\'LVSOHDVXUH

(LJKWRI6FHSWUHV²8QGHUVWDQGLQJ2EVHUYDWLRQ'LUHFWLRQ5
4XDUUHOV,QWHVWLQHGLVSXWHV'LVFRUG

6HYHQRI6FHSWUHV²6XFFHVV*DLQ$GYDQWDJH3URILW9LFWRU\5
,QGHFLVLRQ'RXEW+HVLWDWLRQ(PEDUUDVVPHQW$Q[LHW\

6L[RI6FHSWUHV²$WWHPSW+RSH'HVLUH:LVK([SHFWDWLRQ5
,QILGHOLW\7UHDFKHU\'LVOR\DOW\3HUILG\

)LYHRI6FHSWUHV²*ROG2SXOHQFH*DLQ+HULWDJH5LFKHV
)RUWXQH0RQH\5/HJDOSURFHHGLQJV-XGJPHQW/DZ/DZ\HU
7ULEXQDO

)RXURI6FHSWUHV²6RFLHW\8QLRQ$VVRFLDWLRQ&RQFRUG
+DUPRQ\53URVSHULW\6XFFHVV+DSSLQHVV$GYDQWDJH

7KUHHRI6FHSWUHV²(QWHUSULVH8QGHUWDNLQJ&RPPHUFH7UDGH
1HJRWLDWLRQ5+RSH'HVLUH$WWHPSW:LVK

'HXFHRI6FHSWUHV²5LFKHV)RUWXQH2SXOHQFH0DJQLILFHQFH
*UDQGHXU56XUSULVH$VWRQLVKPHQW(YHQW([WUDRUGLQDU\
2FFXUUHQFH

$FHRI6FHSWUHV²%LUWK&RPPHQFHPHQW%HJLQQLQJ2ULJLQ
6RXUFH53HUVHFXWLRQ3XUVXLWV9RLOHQFH9H[DWLRQ&UXHOW\7\UDQQ\

.LQJRI&XSV²$IDLU0DQ*RRGQHVV.LQGQHVV/LEHUDOLW\
*HQHURVLW\5$0DQRIJRRGSRVLWLRQEXWVKLIW\LQKLV'HDOLQJV
'LVWUXVW'RXEW6XVSLFLRQ

4XHHQRI&XSV²$IDLU:RPDQ6XFFHVV+DSSLQHVV$GYDQWDJH
3OHDVXUH5$:RPDQLQJRRGSRVLWLRQEXWLQWHUPHGGOLQJDQGWREH
GLVWUXVWHG6XFFHVVEXWZLWKVRPHDWWHQGDQWWURXEOH

.QLJKWRI&XSV²$UULYDO$SSURDFK$GYDQFH5'XSOLFLW\
$EXVHRI&RQILGHQFH)UDXG&XQQLQJ

.QDYHRI&XSV²$IDLU<RXWK&RQILGHQFH3URELW\'LVFUHWLRQ
,QWHJULW\5$)ODWWHUHU'HFHSWLRQ$UWLILFH

7HQRI&XSV²7KH7RZQZKHUHLQRQHUHVLGHV+RQRXU
&RQVLGHUDWLRQ(VWHHP9LUWXH*ORU\5HSXWDWLRQ5&RPEDW6WULIH
2SSRVLWLRQ'LIIHUHQFHV'LVSXWH
1LQHRI&XSV²9LFWRU\$GYDQWDJH6XFFHVV7ULXPSK
'LIILFXOWLHVVXUPRXQWHG5)DXOWV(UURUV0LVWDNHV,PSHUIHFWLRQV

(LJKWRI&XSV²$IDLU*LUO)ULHQGVKLS$WWDFKPHQW7HQGHUQHVV
5*DLHW\)HDVWLQJ-R\3OHDVXUH

6HYHQRI&XSV²,GHD6HQWLPHQW5HIOHFWLRQ3URMHFW53ODQ
'HVLJQ5HVROXWLRQ'HFLVLRQ

6L[RI&XSV²7KH3DVWSDVVHGE\)DGHG9DQLVKHG'LVDSSHDUHG
57KH)XWXUHWKDWZKLFKLVWRFRPH6KRUWO\6RRQ

)LYHRI&XSV²8QLRQ-XQFWLRQ0DUULDJH,QKHULWDQFH5$UULYDO
5HWXUQ1HZV6XUSULVH)DOVHSURMHFWV

)RXURI&XSV²(QQXL'LVSOHDVXUH'LVFRQWHQW'LVVDWLVIDFWLRQ
51HZ$FTXDLQWDQFH&RQMHFWXUH6LJQ3UHVHQWLPHQW

7KUHHRI&XSV²6XFFHVV7ULXPSK9LFWRU\)DYRXUDEOHLVVXH5
([SHGLWLRQRIEXVLQHVV4XLFNQHVV&HOHULW\9LJLODQFH

'HXFHRI&XSV²/RYH$WWDFKPHQW)ULHQGVKLS6LQFHULW\
$IIHFWLRQ5&URVVHGGHVLUHV2EVWDFOHV2SSRVLWLRQ+LQGUDQFH

$FHRI&XSV²)HDVWLQJ%DQTXHW*RRG&KHHU5&KDQJH
1RYHOW\0HWDPRUSKRVLV,QFRQVWDQF\

.LQJRI6ZRUGV²$/DZ\HUD0DQRI/DZ3RZHU&RPPDQG
6XSHULRULW\$XWKRULW\5$:LFNHG0DQ&KDJULQ:RUU\*ULHI
)HDU'LVWXUEDQFH

4XHHQRI6ZRUGV²:LGRZKRRG/RVV3ULYDWLRQ$EVHQFH
6HSDUDWLRQ5$%DG:RPDQLOOWHPSHUHGDQGELJRWHG5LFKHVDQG
'LVFRUG$EXQGDQFHWRJHWKHUZLWK:RUU\-R\ZLWK*ULHI

.QLJKWRI6ZRUGV²$6ROGLHUDPDQZKRVHSURIHVVLRQLVDUPV
6NLOIXOQHVV&DSDFLW\$GGUHVV3URPSWLWXGH5$FRQFHLWHGIRRO
,QJHQXRXVQHVV6LPSOLFLW\

.QDYHRI6ZRUGV²$6S\2YHUORRNLQJ$XWKRULW\57KDWZKLFK
LVXQIRUHVHHQ9LJLODQFH6XSSRUW

7HQRI6ZRUGV²7HDUV$IIOLFWLRQ*ULHI6RUURZ53DVVLQJ
6XFFHVV0RPHQWDU\$GYDQWDJH

1LQHRI6ZRUGV²$Q(FFOHVLDVWLFD3ULHVW&RQVFLHQFH3URELW\
*RRG)DLWK,QWHJULW\5:LVHGLVWUXVW6XVSLFLRQ)HDU'RXEW6KDG\
FKDUDFWHU
(LJKWRI6ZRUGV²6LFNQHVV&DOXPQ\&ULWLFLVP%ODPH5
 7UHDFKHU\LQWKH3DVW(YHQW$FFLGHQW5HPDUNDEOH,QFLGHQW

6HYHQRI6ZRUGV²+RSH&RQILGHQFH'HVLUH$WWHPSW:LVK5
:LVH$GYLFH*RRG&RXQVHO:LVGRP3UXGHQFH&LUFXPVSHFWLRQ

6L[RI6ZRUGV²(QYR\0HVVHQJHU9R\DJH7UDYHO5
'HFODUDWLRQ/RYHSURSRVHG5HYHODWLRQ6XUSULVH

)LYHRI6ZRUGV²0RXUQLQJ6DGQHVV$IIOLFWLRQ5/RVVHV
7URXEOH VDPHVLJQLILFDWLRQZKHWKHUUHYHUVHGRUQRW 

)RXURI6ZRUGV²6ROLWXGH5HWUHDW$EDQGRQPHQW6ROLWDU\
+HUPLW5(FRQRP\3UHFDXWLRQ5HJXODWLRQRI([SHQGLWXUH

7KUHHRI6ZRUGV²$1XQ6HSDUDWLRQ5HPRYDO5XSWXUH
4XDUUHO5(UURU&RQIXVLRQ0LVUXOH'LVRUGHU

'HXFHRI6ZRUGV²)ULHQGVKLS9DORXU)LUPQHVV&RXUDJH5
)DOVH)ULHQGV7UHDFKHU\/LHV

$FHRI6ZRUGV²7ULXPSK)HFXQGLW\)HUWLOLW\3URVSHULW\5
(PEDUUDVVPHQW)RROLVKDQG+RSHOHVV/RYH2EVWDFOH+LQGUDQFH

.LQJRI3HQWDFOHV²$GDUN0DQ9LFWRU\%UDYHU\&RXUDJH
6XFFHVV5$QROGDQGYLFLRXV0DQD'DQJHURXV0DQ'RXEW)HDU
3HULO'DQJHU

4XHHQRI3HQWDFOHV²$GDUN:RPDQDJHQHURXV:RPDQ
/LEHUDOLW\*UHDWQHVVRI6RXO*HQHURVLW\5&HUWDLQ(YLODVXVSLFLRXV
:RPDQD:RPDQMXVWO\UHJDUGHGZLWK6XVSLFLRQ'RXEW0LVWUXVW

.QLJKWRI3HQWDFOHV²$XVHIXO0DQ7UXVWZRUWK\:LVGRP
(FRQRP\2UGHU5HJXODWLRQ5$EUDYH0DQEXWRXWRI(PSOR\PHQW
,GOH8QHPSOR\HG1HJOLJHQW

.QDYHRI3HQWDFOHV²$GDUN<RXWK(FRQRP\2UGHU5XOH
0DQDJHPHQW53URGLJDOLW\3URIXVLRQ:DVWH'LVVLSDWLRQ

7HQRI3HQWDFOHV²+RXVH'ZHOOLQJ+DELWDWLRQ)DPLO\5
*DPEOLQJ'LVVLSDWLRQ5REEHU\/RVV

1LQHRI3HQWDFOHV²'LVFUHWLRQ&LUFXPVSHFWLRQ3UXGHQFH
'LVFHUQPHQW5'HFHLW%DGIDLWK$UWLILFHV'HFHSWLRQ

(LJKWRI3HQWDFOHV²$GDUN*LUO%HDXW\&DQGRXU&KDVWLW\
,QQRFHQFH0RGHVW\5)ODWWHU\8VXU\+\SRFULV\6KLIW\

6HYHQRI3HQWDFOHV²0RQH\)LQDQFH7UHDVXUH*DLQ3URILW5
'LVWXUEDQFH:RUU\$Q[LHW\0HODQFKRO\
6L[RI3HQWDFOHV²3UHVHQWV*LIWV*UDWLILFDWLRQ5$PELWLRQ
'HVLUH3DVVLRQ$LP/RQJLQJ

)LYHRI3HQWDFOHV²/RYHURU0LVWUHVV/RYH6ZHHWQHVV
$IIHFWLRQ3XUHDQG&KDVWH/RYH5'LVJUDFHIXO/RYH,PSUXGHQFH
/LFHQVH3URIOLJDF\

)RXURI3HQWDFOHV²3OHDVXUH*DLHW\(QMR\PHQW6DWLVIDFWLRQ5
2EVWDFOHV+LQGUDQFHV

7KUHHRI3HQWDFOHV²1RELOLW\(OHYDWLRQ'LJQLW\5DQN3RZHU
5&KLOGUHQ6RQV'DXJKWHUV<RXWKV&RPPHQFHPHQW

'HXFHRI3HQWDFOHV²(PEDUUDVVPHQW:RUU\'LIILFXOWLHV5
/HWWHU0LVVLYH(SLVWOH0HVVDJH

$FHRI3HQWDFOHV²3HUIHFW&RQWHQWPHQW)HOLFLW\3URVSHULW\
7ULXPSK53XUVHRI*ROG0RQH\*DLQ+HOS3URILW5LFKHV

7KHIROORZLQJDGGLWLRQDOUHPDUNVPD\EHVHUYLFHDEOHWRWKHWRWKH
LQH[SHULHQFHG&DUWRPDQFHU7KH\DUHFKLHIO\WDNHQIURP(WWHLOOD

.QLJKWRI6FHSWUHV²7KLVFDUGLVQRWWREHUHDGVLQJO\LWPHDQV
WKH'HSDUWXUHRIWKHFDUGZKLFKIROORZVLW5$JDLQQRWLFHWKHFDUG
ZKLFKIROORZVLWLID:RPDQ4XDUUHOZLWKD:RPDQLI0RQH\WKHQ
/RVVRI0RQH\ F

.QDYHRI6FHSWUHV²51RWLFHEHWZHHQZKDWFDUGVWKH1HZVIDOOV
ZKLFKZLOOVKRZZKHQFHLWFRPHVDQGRIZKDWQDWXUHLWLV

'HXFHRI6FHSWUHV²5,IWKHFDUGVIDOO55\RXZLOOEH
VXUSULVHGE\DFKDQJH,I55LWZLOOEHKDSS\EXWWKH
UHYHUVHLIWKH\IDOO55

7KH.QLJKWRI&XSV²7KLVVKRZVWKHDUULYDORIWKHFDUGZKLFK
IROORZVLWDVWKHDUULYDORIDIIOLFWLRQRUJULHIWKHYLVLWRI
DIDLU\RXQJPDQHWF

6HYHQRI&XSV²([SODLQVWKHFDUGZKLFKIROORZVWKXV

7KHLGHDRIDWWHPSWLQJVRPHXQGHUWDNLQJ7KLVZLOODJDLQEH
PRGLILHGE\WKHIROORZLQJFDUGV

6L[RI&XSV²6KRZVHLWKHUWKDWZKDWSUHFHGHVLWLVSDVWKDV
RFFXUUHGDOUHDG\RULI5ZKDWLVJRLQJWRKDSSHQ

)RXURI&XSV²7KHIROORZLQJFDUGVPLJKWVKRZZKDWWKH
GLVSOHDVXUHRUDQ[LHW\ZDVDERXWWKHSUHFHGLQJFDUGVZKHQFHLW
RULJLQDWHG
4XHHQRI6ZRUGV²7KLVLVQRWQHFHVVDULO\WREHWDNHQE\LWVHOILW
PD\VLJQLI\WKDWWKHSHUVRQV\PEROLVHGE\WKHFDUGVQHDULWKDVMXVW
ORVWRULVOLNHO\VRRQWRORVHZLIHRUKXVEDQG,QVRPHLQVWDQFHVLWPD\
PHUHO\VLJQLI\WKDWLIWZRSHRSOHDUHPDUULHGWKHRQHZLOOGLHVRPH
WLPHEHIRUHWKHRWKHUEXWQRWQHFHVVDULO\WKDWWKHHYHQWZLOORFFXU
LPPHGLDWHO\

.QDYHRI6ZRUGV²5,I5$QXQH[SHFWHGSUHVHQW,I
5XQH[SHFWHGJULHIHWF

1LQHRI6ZRUGV²57KHFDUGIROORZLQJZLOOVKRZZKRPRUZKDW
WRGLVWUXVW F

(LJKWRI6ZRUGV²56KRZV7UHDFKHU\RU'HFHLWLQWKHSDVWDQG
ZLOOEHH[SODLQHGE\WKHQHLJKERXULQJFDUGV

6HYHQRI6ZRUGV²57KHFDUGVZKLFKFRPHQH[WZLOOVKRZ
ZKHWKHULWZLOOEHJRRGWRIROORZWKHDGYLFHJLYHQRUQRW$OVRWKH
SUHFHGLQJFDUGVZLOOVKRZIURPZKRPDQGZK\WKHDGYLFHFRPHV

)RXURI6ZRUGV²57KHFDUGVQHDUZLOOVKRZZKHWKHULWLVKHDOWK
RUPRQH\WKDWUHTXLUHVFDUH

7KUHHRI6ZRUGV²50D\VKRZVLPSO\WKDWVRPHWKLQJLVORVWRU
PLVODLGIRUDWLPH

'HXFHRI6ZRUGV²5,IFRQILUPHGE\WKHRWKHUFDUGVPD\VLPSO\
PHDQWKDWWKHIULHQGVDUHQRWRIPXFKXVHWRWKHLQTXLUHULQWKHPDWWHU
XQGHUFRQVLGHUDWLRQ

4XHHQRI3HQWDFOHV²5 ,IWKLVFDUGGRHVQRWVLJQLI\DQ\
SDUWLFXODUSHUVRQ ,I55,WLVQRWVDLGWKDWWKHUHZLOOEHD
/DZVXLW,I55,I\RXJDLQ\RXUFDVH\RXZRQ¶WEHPXFKWKH
EHWWHUIRULW

.QDYHRI3HQWDFOHV²5&RQVXOWWKHIROORZLQJFDUGVWRVHHLQ
ZKDWWKHSHUVRQLVSURGLJDO,I55LWPD\VLPSO\PHDQWKDW
WKHSHUVRQLVWRRIRQGRIJLYLQJDGYLFHLQWHUPHGGOHVWRRPXFKZLWK
RWKHUSHRSOH¶VEXVLQHVV

6HYHQRI3HQWDFOHV²57KHQH[WFDUGZLOOVKRZWKHUHDVRQRIWKH
DQ[LHW\DQGVRRQ

)LYHRI3HQWDFOHV²6KRZVVLPSO\WKDWWKHUHLVVRPHRQHZKRP
WKHSHUVRQORYHV

7KH&RXUW&DUGVDQGHVSHFLDOO\WKH.LQJVDQG4XHHQVPD\EHWDNHQ
WRUHSUHVHQWSHUVRQVLQWKLVFDVHWKHLUDGGLWLRQDOPHDQLQJVKRXOGQRW
EHUHDG7KH6ZRUGVUHSUHVHQWYHU\GDUNSHRSOH3HQWDFOHVWKRVHQRW
VRGDUN&XSVUDWKHUIDLUSHRSOH:DQGVRU6FHSWUHVWKRVHPXFK
IDLUHUDQGVRRQ0DQ\:DQGVWRJHWKHUPLJKWVLJQLI\IHDVWLQJPDQ\
&XSVORYHPDNLQJ6ZRUGVTXDUUHOOLQJDQGWURXEOH&RLQVRU3HQWDFOHV
PRQH\

:KHUHWKHPRGHRIUHDGLQJWKHFDUGVUHTXLUHVWKDWWKHSHUVRQ
FRQVXOWLQJVKRXOGEHUHSUHVHQWHGKHVKRXOGWDNHRQHRIWKH.LQJVWR
UHSUHVHQWKLPVHOIDFFRUGLQJWRKLVFRPSOH[LRQ,IDODG\FRQVXOWVWKH
FDUGVOHWKHUWDNHRQHRIWKH4XHHQVLIVKHEHUDWKHUIDLUWKH4XHHQRI
&XSVLIVKHEHYHU\IDLUWKH4XHHQRI:DQGVRU6FHSWUHV,IWKH
LQTXLUHUEHTXLWHD\RXWKRUDER\OHWKLPWDNHRQHRIWKH.QLJKWVLID
YHU\\RXQJJLUOOHWKHUWDNHWKH.QDYHHWF(WWHLOOD¶VSODQZDVWRWDNH
WZRRIWKH.H\VIRU6LJQLILFDWRUVWKDWDQVZHULQJWRWKH3RSHIRUDPDQ
WKDWDQVZHULQJWRWKH+LJK3ULHVWHVVIRUDZRPDQEXW,GRQRWWKLQN
WKLVLVVRZHOO7KHZRUVWRI(WWHLOOD¶VV\VWHPLVWKDWKHVRFRPSOHWHO\
GHVWUR\VWKHPHDQLQJVRIWKH.H\VLQKLVDWWHPSWHGUHDUUDQJHPHQWRI
WKHPDVWRPDNHWKHPSUDFWLFDOO\XVHOHVVIRUKLJKHURFFXOWSXUSRVHV

,VKDOOQRZJLYHVHYHUDOPRGHVRIOD\LQJRXWWKHFDUGVIRUGLYLQDWLRQ
7KHUHDGHUFDQDGRSWZKLFKHYHUKHSUHIHUVRUKHFDQFRPELQHWKHP

:KDWHYHUPRGHRIOD\LQJRXWEHDGRSWHGLWLVQHFHVVDU\WKDWWKHSHUVRQ
LQTXLULQJVKRXOGFDUHIXOO\VKXIIOHWKHFDUGVZLWKWZRREMHFWVLQYLHZ
ILUVWO\WKDWRIWXUQLQJVRPHRIWKHFDUGVXSVLGHGRZQVHFRQGO\WKDWRI
WKRURXJKO\DOWHULQJWKHLUSRVLWLRQDQGVHTXHQFHLQWKHSDFN7KH\
VKRXOGWKHQEHFXW'XULQJWKHVKXIIOLQJDQGFXWWLQJWKHLQTXLUHUVKRXOG
WKLQNHDUQHVWO\RIWKHPDWWHUFRQFHUQLQJZKLFKKHLVDQ[LRXVIRU
LQIRUPDWLRQIRUXQOHVVKHGRHVWKLVWKHFDUGVZLOOUDUHO\UHDGFRUUHFWO\
7KLVVKXIIOLQJDQGFXWWLQJVKRXOGEHWKULFHUHSHDWHG7KHEDFNVRIWKH
FDUGVVKRXOGEHWRZDUGVWKHSHUVRQVKXIIOLQJ

),5670(7+2'²7KHIXOOSDFNRIVHYHQW\HLJKWFDUGVKDYLQJ
EHHQILUVWGXO\VKXIIOHGDQGFXWGHDOWKHWRSFDUGRQDSDUWRIWKHWDEOH
ZKLFKZHZLOOFDOO%WKHVHFRQGFDUGRQDQRWKHUSODFHZKLFKZHZLOO
FDOO$ 7KHVHZLOOIRUPWKHFRPPHQFHPHQWRIWZRKHDSV$DQG%
LQWRZKLFKWKHZKROHSDFNLVWREHGHDOW 7KHQGHDOWKHWKLUGDQG
IRXUWKFDUGVRQ%DQGWKHILIWKRQ$WKHVL[WKDQGVHYHQWKRQ%DQG
WKHHLJKWKRQ$WKHQLQWKDQGWHQWKRQ%DQGWKHHOHYHQWKRQ$
&RQWLQXHWKLVRSHUDWLRQRIGHDOLQJWZRFDUGVRQ%DQGRQHRQ$WLOO
\RXFRPHWRWKHHQGRIWKHSDFN$ZLOOWKHQFRQVLVWRIWZHQW\VL[
FDUGVDQG%RIILIW\WZR

1RZWDNHXSWKH%KHDSRIILIW\WZRFDUGV'HDOWKHWRSFDUGRQDIUHVK
SODFHZKLFKZHZLOOFDOO'DQGWKHVHFRQGFDUGRQDQRWKHUSODFH&
7KLVZLOOIRUPWKHEHJLQQLQJRIWZRIUHVK

KHDSV&DQG' 7KHQGHDOWKHWKLUGDQGIRXUWKFDUGVRQ'DQGWKH
ILIWKRQ&WKHVL[WKDQGVHYHQWKRQ'DQGWKHHLJKWKRQ&DQGVRRQ
DVEHIRUHWKURXJKWKHVHILIW\WZRFDUGV7KHUHZLOOQRZEHWKUHHKHDSV
$ FDUGV& FDUGVDQG' FDUGV
$JDLQWDNHXSWKHKHDS'RIFDUGVDQGGHDOWKHWRSFDUGRQDIUHVK
VSRW)DQGWKHVHFRQGFDUGRQDQRWKHUSODFH( VRDVWRPDNHWZRIUHVK
KHDSV(DQG) 1RZGHDOWKHWKLUGDQGIRXUWKFDUGVRQ)DQGWKHILIWK
RQ(DQGVRRQDVEHIRUHWKURXJKWKHVHFDUGV

7KHUHZLOOQRZEHIRXUKHDSVDOWRJHWKHU$ FDUGV& FDUGV(


DQG) 3XW)DVLGHDOWRJHWKHUDVWKHVHFDUGVDUHQRWWREH
XVHGLQWKHUHDGLQJDQGDUH6XSSRVHGWRKDYHQREHDULQJRQWKH
TXHVWLRQ7KHUHZLOOQRZUHPDLQ$&DQG(

7DNH$DQGDUUDQJHWKHFDUGVIDFHXSZDUGVIURPULJKWWROHIW EHLQJ
FDUHIXOQRWWRDOWHUWKHRUGHU VRWKDWWKH\DUHLQWKHIRUPRID
KRUVHVKRHWKHWRSFDUGEHLQJDWWKHORZHVWULJKWKDQGFRUQHUDQGWKH
WKDWWKHORZHVWOHIWKDQGFRUQHU5HDGWKHLUPHDQLQJVIURPULJKWWR
OHIWDVEHIRUHH[SODLQHG:KHQWKLVLVGRQHVRDVWRPDNHD&RQQHFWHG
DQVZHUWDNHWKHVWDQGWKDQGUHDGWKHLUFRPELQHGPHDQLQJWKHQ
WKDWRIWKHQGDQGWKDQGVRRQWLOO\RXFRPHWRWKHODVWSDLUZKLFK
ZLOOEHWKHWKDQGWK3XW$DVLGHDQGWDNH&DQGUHDGLWLQH[DFWO\
WKHVDPHZD\WKHQ(ODVW

7KLVLVDYHU\DQFLHQWPRGHRIUHDGLQJWKH7DURWDQGZLOOEHIRXQG
UHOLDEOH

6(&21'0(7+2'²:LWKGUDZWKH.LQJRU4XHHQVHOHFWHGIRU
WKH,QTXLUHU¶V6LJQLILFDWRUIURPWKHSDFN7KHQVKXIIOHDQGFXWWKH
VDPHDVEHIRUH3ODFHWKH6LJQLILFDWRURQWKHWDEOHIDFHXSZDUGV
OHDYLQJSOHQW\RIURRPIRUWKHVHOHFWHGFDUGVRQWKHOHIWKDQGVLGHRILW
1RZJRFDUHIXOO\WKURXJKWKHSDFNWDNLQJWKHWRSFDUGILUVWWKHQWKH
VHYHQWKFDUGIURPLWDQGVRRQWKURXJKWKHSDFNUHFRPPHQFLQJLI
QHFHVVDU\XQWLO\RXKDYHGUDZQFDUGVE\WDNLQJHYHU\VHYHQWK
$UUDQJHWKHVHFDUGVLQWKUHHURZVRIVHYHQHDFKIURPULJKWWROHIW
RQWKHOHIWKDQGVLGHRIWKH6LJQLILFDWRUWKXV

      6LJQLILFDWRU


      
      

5HDGWKHPHDQLQJRIHDFKURZIURPULJKWWROHIWEHJLQQLQJZLWKWKH
6LJQLILFDWRUWKHQFRPELQHWKHVWDQGVWWKHQGDQGWKDQGVR
RQDVLQWKHSUHYLRXVPHWKRG

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

                                    
     
    

                                


                          

                          



  

                   





   

   6LJQLILFDWRU      



    


                         



                          



      

 
                       



                        



        

               

         

                 



          

               



7KHFDUGVZLOOWKXVIRUPDWULDQJOHZLWKLQDVSHFLHVRIDUFKDQGWKH
6LJQLILFDWRURIWKH,QTXLUHULVWREHSODFHGLQWKHFHQWUHRIWKHWULDQJOH
IDFHXSZDUGV7KHWRSFDUGLVWREHGHDOWRQQXPEHUWKHVHFRQGFDUG
RQQXPEHUWKHWZHOIWKFDUGRQQXPEHUDQGVRRQXSWRQXPEHU
ZKHQWKHUHPDLQLQJFDUGVDUHWREHSXWDVLGHDQGQRWXVHGLQWKH
UHDGLQJ

7KHQWRDQGWRLQFOXVLYHZLOOVKRZWKHSDVWWRDQG
WRLQFOXVLYHZLOOVKRZWKHSUHVHQWDQGWRDQGWR
LQFOXVLYHZLOOVKRZWKHIXWXUH

1RZUHDGWKHPVLPSO\LQRUGHUIURPWRIRUWKHSDVWIURPWR
IRUWKHSUHVHQWDQGIURPWRIRUWKHIXWXUH

7KHQFRPELQHWKH6LJQLILFDWRUZLWKHYHU\WZRFDUGVWKXV²66
6DQGVRRQXSWR6IRUWKHSDVW7KHQWDNH6
6DQGVRRQIRUWKHSUHVHQW$QGWKHQWDNH66XS
WR6IRUWKHIXWXUH

$JDLQYDU\WKHFRPELQDWLRQVE\WDNLQJ6XSWR6
IRUWKHSDVW6XSWR6IRUWKHSUHVHQWDQG
6XSWR6IRUWKHIXWXUH

)LQDOO\FRPELQHWKHPDOOWRJHWKHUWKXV²DQGVRRQ
XSWRSODFLQJWKHPLQDVLQJOHSDFNHWRQHRQWKHRWKHUDV\RXGR
VRDQGZKHQWKLVLVILQLVKHGGHDOWKHZKROHFDUGVLQRQHODUJH
FLUFOHSODFLQJWKH6LJQLILFDWRUDVDVWDUWLQJSRLQWZKHQZLOOEHWKH
ILUVWFDUGDQGWKHODVWFDUGRQHLWKHUVLGHRIWKH6LJQLILFDWRU1RZ
JDWKHUWKHPXSWKXVLQSDLUVIRUWKHODVWUHDGLQJ6DQG
VRRQXSWRWKHODVWFDUGZKLFKZLOOEHDVLQJOHRQH'UDZWZRRWKHU
IUHVKFDUGVDWUDQGRPIURPWKHFDUGVZKLFKKDYHQRWEHHQXVHGLQ
WKHUHDGLQJDQGSODFHWKHPIDFHXSZDUGVRQHRQHLWKHUVLGHWRIRUPD
VXUSULVH5HDGWKHVHWKUHHIURPULJKWWROHIWDVFRQFOXVLRQ

7KLVPRGHLVUDWKHUGLIILFXOWDWILUVWEXWSUDFWLFHZLOOJLYHIDFLOLW\

7KHVH7DURW&DUGVPD\EHXVHGOLNHWKHRUGLQDU\SDFNVIRUJDPHVDV
ZHOODVIRUGLYLQDWLRQDQGLWPD\EHDVZHOOWRJLYHWKHJHQHUDOUXOHV
DQGPRGHRISOD\7KH*DPHRI7DURWPD\EHSOD\HGE\HLWKHUWZRRU
WKUHHSHUVRQV7KHIXOOSDFNRIFDUGVLVVKXIIOHGDQGFXWLQWKH
RUGLQDU\PDQQHU7KHGHDOHUGHDUVWKHPRXWLQWKUHHKDQGVE\ILYH
FDUGVDWDWLPHDQGSODFHVWKHUHPDLQLQJWKUHHFDUGVDWKLVRZQULJKW
KDQGVLGH7KHUHZLOOWKXVEHWKUHHKDQGVRIFDUGVHDFKDQGWKUHH
FDUGVEHVLGHV7KHSOD\HUVVRUWWKHLUKDQGVDQGWKHGHDOHUGLVFDUGVWKH
WKUHHPRVWXVHOHVVFDUGVLQKLVRZQKDQGDQGH[FKDQJHVWKHPIRUWKH
EHIRUHPHQWLRQHGWKUHHFDUGV7KHGHDOLVWDNHQLQURWDWLRQE\HDFK
SOD\HU7KHPHWKRGRIGHDOLQJLVWKHVDPHZKHWKHUWZRRUWKUHH
SOD\HUVSDUWLFLSDWHWKUHHKDQGVEHLQJGHDOWRXWLQHDFKLQVWDQFHEXWLI
RQO\WZRSOD\HUVFRQWHQGZLWKHDFKRWKHUWKHWKLUGKDQGLVXQWRXFKHG
E\HLWKHUSDUW\

7KHSRLQWVFRQVWLWXWLQJWKHJDPHDUHZKLFKPD\EHPDUNHGRQD
FULEEDJHERDUGRQSDSHURUE\DQRUGLQDU\EH]LTXHPDUNHU

%HIRUHWKHKDQGVDUHSOD\HGRXWWKHLUVFRUHLVUHFNRQHGLQWKHIROORZLQJ
ZD\

7KHWUXPSVDUHQRWDOORIWKHVDPHYDOXH
DUHFDOOHGWKH)LYH*UHDWHU7UXPSV
DUHFDOOHGWKH)LYH/HVVHU7UXPSV

:KRHYHUKDVWKUHHRIWKH*UHDWHURUWKUHHRIWKH/HVVHU7UXPSVLQKLV
KDQGVFRUHVSRLQWVIRUWKHVDPHSRLQWVLIKHKDVIRXUDQG
SRLQWVLIKHKDYHDOOILYH,IWKHSOD\HUKDVDQ\WHQWUXPSVLQKLVKDQG
WKH\ZLOOVFRUHSRLQWVDQ\WKLUWHHQWUXPSVSRLQWV,WGRHVQRW
PDWWHULI*UHDWHURU/HVVHU7UXPSVZKLFKKDYHEHHQDOUHDG\VFRUHG
IRUPSDUWRIVXFKWHQRUWKLUWHHQDOOVFRUHVDUHLQGHSHQGHQWRIRWKHU
FRPELQDWLRQV)XUWKHUPRUHIRUDQ\FDUGVWREHVFRUHGWKH\PXVWEH
VKRZQWRWKHDGYHUVDU\DWWKHWLPHRIVFRULQJWKLVUXOHKROGVJRRGLQ
DOOFDVHV7KHQRQGHDOHUVFRUHVDQGOHDGVILUVW,IWKUHHSOD\WKHSOD\HU
RQWKHGHDOHU¶VOHIWKDQGEHJLQV

6HYHQFDUGVEHDUWKHGLVWLQJXLVKLQJWLWOHRI7DURW7UXPSVWKH\DUH

7KH8QLYHUVHWKH0DWRU)RROLVK0DQWKH3DJDG-XJJOHURU
0DJLFLDQWKH.LQJRI6FHSWUHVWKH.LQJRI&XSVWKH.LQJRI
6ZRUGVDQGWKH.LQJRI3HQWDFOHV

,IWKHSOD\HUKDVDQ\WZRRIWKHVH7DURW7UXPSVKHFDQDVNKLV
RSSRQHQWIRUDWKLUGLIWKHODWWHUFDQQRWUHSO\E\VKRZLQJDWKLUG7DURW
7UXPSWKHIRUPHUFDQVFRUHSRLQWVEXWLIKHKDVWKHWKLUGLWPXVWEH
JLYHQXSWRWKHDVNHUZKRWKHQGRHVQRWVFRUHEXWJLYHVKLPVRPH
FDUGRIVPDOOYDOXHLQH[FKDQJH)RUHYHU\WKUHH7DURW7UXPSVDFWXDOO\
KHOGLQWKHKDQGWKHKROGHUPDUNVSRLQWV

6HTXHQFHVRIWUXPSVRURIFDUGVRIWKHVDPHVXLWFRXQWIRUHYHU\IRXU
FDUGVLQVHTXHQFHSRLQWVIRUHYHU\VHYHQFDUGVSRLQWVIRUWHQ
FDUGVSRLQWV$OOFDUGVIRUPLQJWKHVHVFRUHVPXVWEHVKRZQWRWKH
DGYHUVDU\
7KH)RROLVK0DQLVWKHORZHVWFDUGLQWKHSDFNLQSOD\LQJWKHKDQG
FDQWDNHQRFDUGRIDQ\VXLWDQGPD\EHSOD\HGWRDFDUGRIDQ\VXLW
)RULQVWDQFHLIWKHDGYHUVDU\OHDGVD.LQJDQG\RXKDYHRQO\WKH
4XHHQRIWKDWVXLWUHPDLQLQJLQ\RXUKDQGEXWKDYHDOVRWKH\RXFDQ
SOD\WKLVLQVWHDGRIWKH4XHHQDQGWKXVVDYHKHUIURPEHLQJWDNHQ$
.LQJFXWFRXQWVSRLQWVWRZKRVRHYHUFXWVLW,QHDFKVXLW.LQJLV
KLJKHVWWKHQFRPH4XHHQ.QLJKW.QDYH7HQ1LQHHWFGRZQWR
$FHZKLFKLVORZHVWDQGFDQRQO\WDNHWKH7KH7UXPSVUHFNRQ
IURPZKLFKLVKLJKHVWWRZKLFKLVORZHVW<RXPXVWIROORZVXLW
LI\RXFDQLIQRW\RXPD\WUXPS(DFKWULFNVKRXOGEHNHSWVHSDUDWH
IRUFRXQWLQJDIWHUZDUGV2IFRXUVHWKHSULQFLSDOFDUHRIWKHSOD\HU
VKRXOGEHGLUHFWHGWRZDUGVVDYLQJKLVRZQLPSRUWDQWFDUGVDQGWDNLQJ
WKRVHRIWKHDGYHUVDU\7KHSOD\HUZKRWDNHVDWULFNOHDGVQH[W:KHQ
DOOWKHKDQGLVSOD\HGRXWWKHWULFNVRQHLWKHUVLGHDUHFRXQWHGDV
IROORZV²

)RUHYHU\WULFNLQZKLFKWKHUHLVD7DURW7UXPSSRLQWV WKHFRXQWV
WRLWVRULJLQDOSRVVHVVRUZKLOHWKH3DJDGFRXQWVWRWKHSOD\HUZKR
WDNHVLW )RUHYHU\WULFNZLWKD

4XHHQSRLQWVZLWKD.QLJKWSRLQWVZLWKD.QDYHSRLQWVIRU
HYHU\RWKHUWULFNSRLQW

$WWKHHQGRIHDFKKDQGWKHSRLQWVPDGHE\HDFKSOD\HUDUHDGGHGXS
VHSDUDWHO\WKHQWKHOHVVHULVWDNHQIURPWKHJUHDWHUDQGRQO\WKHH[FHVV
SRLQWVRIWKHPRUHIRUWXQDWHSOD\HUDUHVFRUHG7KHVDPHLVGRQHLQ
HDFKKDQGDQGWKHSOD\HUZKRLQWKLVZD\ILUVWUHDFKHVSRLQWV RU
RYHULQWKHILQDOKDQG ZLQVWKHJDPH

)RUP\UHDGHU¶VFRQYHQLHQFH,DSSHQGDWDEOHRIWKHSRLQWVZKLFKFDQ
EHVFRUHG

6FRUHGLQ+DQG  3RLQWV


)RUDQ\RIWKH*UHDWHU7UXPSVKHOGLQKDQG  
)RUDQ\RIWKH*UHDWHU7UXPSVKHOGLQKDQG  
)RUDOORIWKH*UHDWHU7UXPSVKHOGLQKDQG  
)RUDQ\RIWKH/HVVHU7UXPSVKHOGLQKDQG  
)RUDQ\RIWKH/HVVHU7UXPSVKHOGLQKDQG  
)RUDOORIWKH/HVVHU7UXPSVKHOGLQKDQG   
)RUDQ\7UXPSVKHOGLQKDQG  
)RUDQ\7UXPSVKHOGLQKDQG  
)RUDQ\7DURW7UXPSVFDOOHGXQDQVZHUHG  
)RUDQ\7DURW7UXPSVDFWXDOO\KHOGLQKDQG  
)RUHYHU\6HTXHQFHRI&DUGV  
)RUHYHU\6HTXHQFHRI&DUGV  
)RUHYHU\6HTXHQFHRI&DUGV  
6FRUHGLQ3OD\  3RLQWV
)RUD.LQJFXW  
)RUHDFK7ULFNFRQWDLQLQJD7DURW7UXPS  
7KHHDFK7ULFNFRQWDLQLQJD4XHHQ   
)RUHDFK7ULFNFRQWDLQLQJD.QLJKW   
)RUHDFK7ULFNFRQWDLQLQJD.QDYH  
)RUHYHU\7ULFNRIWZRSODLQ&DUGV   

,IWKUHHSOD\HUVFRQWHQGRIFRXUVHWKHWKLUGSOD\HUZLOOIRUPDQ
DGGLWLRQDOIDFWRULQWKHJDPH7KHQZKHQWKHWKUHHFRPSDUHWKHLU
YDULRXVVFRUHVLQWKHVDPHKDQGRQO\KHZKRKDVPRVWVKRXOGVFRUH
DQGWKHQRQO\WKHDPRXQWE\ZKLFKKHH[FHHGVWKHSOD\HUZKRFRPHV
VHFRQG7KHRWKHUSOD\HUVGRQRWVFRUHDWDOO

%HIRUHFRQFOXGLQJWKLVVKRUWWUHDWLVH,ZLOOVD\DIHZZRUGVRQWKH
RFFXOWDQG4DEDOLVWLFDOVLJQLILFDWLRQRIWKHVHZRQGHUIXO7DURW&DUGV,W
KDVEHHQORQJNQRZQWKDWWKHRUGLQDU\FDUGSDFNZDVVXVFHSWLEOHRI
VRPHSHFXOLDUQXPHULFDOVLJQLILFDWLRQVHJ

&DUGVLQWKHSDFNVXJJHVWZHHNVLQWKH\HDU
&DUGVLQHDFKVXLWVXJJHVWOXQDUPRQWKVLQWKH\HDUZHHNVLQWKH
TXDUWHU
VXLWVLQWKHSDFNVXJJHVWVHDVRQVLQWKH\HDU
3LFWXUH&DUGVLQWKHSDFNVXJJHVWPRQWKVLQWKH\HDUVLJQVRIWKH
=RGLDF

)XUWKHUPRUHLIZHDGGWRJHWKHU

7KHSLSVRQWKHSODLQFDUGVRIWKHIRXUVXLWV  
7KHSLSVRQWKH3LFWXUH&DUGV   
7ZHOYH3LFWXUH&DUGVUHFNRQHGDVHDFK  
7KHQXPEHURIFDUGVLQHDFKVXLW  
:HVKDOOREWDLQWKHQXPEHURIGD\VLQWKH\HDU  

%XWFRQFHDOHGEHKLQGWKHLUDSSDUHQWO\DUELWUDU\DQGEL]DUUHGHVLJQVWKH
7DURW&DUGVFRQWDLQDIDUPRUHFRPSOLFDWHGV\VWHPRIUHFRQGLWH
V\PEROLVP:HIPGWKHQXPEHUWHQPXOWLSOLHGE\WKHP\VWLFDOQXPEHU
IRXUDQGFRPELQHGZLWKDSULPLWLYHKLHURJO\SKLFDOSKDEHWRIWZHQW\
WZROHWWHUV

(OLSKDV/qYLVD\VLQKLV³+LVWRLUHGHOD0DJLH´³7KHDEVROXWH
KLHURJO\SKLFDOVFLHQFHKDGIRULWVEDVLVDQDOSKDEHWRIZKLFKDOOWKH
JRGVZHUHOHWWHUVDOOWKHOHWWHUVLGHDVDOOWKHLGHDVQXPEHUVDQGDOOWKH
QXPEHUVSHUIHFWVLJQV

³7KLVKLHURJO\SKLFDODOSKDEHWRIZKLFK0RVHVPDGHWKHJUHDWVHFUHWRI
KLV&DEDODDQGZKLFKKHUHWRRNIURPWKH(J\SWLDQVIRUDFFRUGLQJWR
WKH6HSKHU<HW]LUDKLWFDPHIURP$EUDKDPWKLVDOSKDEHWZHVD\LV
WKHIDPRXV%RRNRI7KRWKVXVSHFWHGE\&RXUWGH*qEHOLQWREH
SUHVHUYHGWRWKHSUHVHQWWLPHXQGHUWKHIRUPRIWKDWSHFXOLDUSDFNRI
FDUGVZKLFKLVFDOOHGWKH7DURW7KHWHQQXPEHUVDQGWZHQW\WZR
OHWWHUVDUHZKDWDUHFDOOHGLQWKH&DEDODWKHWKLUW\WZRSDWKVRIVFLHQFH
DQGWKHLUSKLORVRSKLFDOGHVFULSWLRQLVWKHVXEMHFWRIWKDWSULPLWLYHDQG
UHYHUHGZRUNNQRZQDVWKH6HSKHU<HW]LUDKZKLFKLVVWLOOWREHIRXQG
LQWKHFROOHFWLRQRI3LVWRULXVDQGRWKHUV7KH$OSKDEHWRI7KRWKLVWKH
RULJLQDORIRXU7DURWRQO\LQDQDOWHUHGIRUP7KH7DURWZKLFKZHKDYH
LVRI-HZLVKRULJLQDQGWKHW\SHVRIWKHILJXUHVFDQQRWEHWUDFHGEDFN
IXUWKHUWKDQWKHUHLJQRI&KDUOHV9,´

7KH6HSKHU<HW]LUDKUHIHUUHGWRLQWKHDERYHTXRWDWLRQKDVEHHQ
UHFHQWO\WUDQVODWHGE\P\IULHQG'U:\QQ:HVWFRWWZKRLVDVNLOIXO
DQGHUXGLWH4DEDOLVWLFDOVWXGHQWVRWKDWLWFDQQRZEHUHDGLQ(QJOLVK
,WFHUWDLQO\JLYHVLQP\RSLQLRQWKH4DEDOLVWLFDO.H\RIWKH7DURWDQG
VKRZVDWRQFHE\HYLGHQWDQDORJ\WKHDQFLHQWDQGUHOLJLRXVRULJLQRI
LWVEL]DUUHV\PEROLVP,WFRQVLVWVRIWKLUW\WKUHHVKRUWVHFWLRQV WKH
WKLUW\WKLUGEHLQJPHUHO\UHFDSLWXODWRU\ GLYLGHGLQWRILYHFKDSWHUVDQG
HOXFLGDWHGE\WKLUW\WZRRFFXOWSDUDJUDSKVFDOOHGWKH³3DWKV´,QIDFWLW
PD\EHFDOOHGDWUHDWLVHRQWKHWHQDQGWKHWZHQW\WZR7KHQXPEHUV
IURPRQHWRWHQDUHVDLGWRV\PEROLVHWKH6SLULW$LU:DWHU)LUH
+HLJKW'HSWK(DVW:HVW1RUWK6RXWK7KHWZHQW\WZROHWWHUVDUH
GLYLGHGLQWRWKUHH0RWKHU/HWWHUV$06+UHIHUULQJWR$LU:DWHU
DQG)LUHVHYHQGRXEOHOHWWHUV%*'.357+UHIHUULQJWRWKH
VHYHQSODQHWVHWFDQGWZHOYHVLPSOHOHWWHUV+9=&+7,/1
627]4UHIHUULQJWRWKHWZHOYHVLJQVRIWKH=RGLDFHWF

&KULVWLDQWKHGLVFLSOHRI/qYLLQKLVUHFHQWZRUNRQ0DJLFKDVPDGH
WKHH[SODQDWLRQRIWKHWZHQW\WZRKLHURJO\SKLFVRIWKH7DURWIRUPSDUW
RIWKHLQLWLDWRU\FHUHPRQLHVRIWKH(J\SWLDQP\VWHULHVRI&UDWD5HSRD

7KHV\PEROVRIWKUHHRIWKHWZHQW\WZR7UXPSVRIWKH7DURWZHUHWKXV
UHVWRUHGE\(OLSKDV/qYL

7KH&KDULRW²$FXELFDOFKDULRWZLWKIRXUFROXPQVVXUPRXQWHGE\
DQD]XUHDQGVWDUGHFNHGFDQRS\:LWKLQWKHFKDULRWDQGEHWZHHQWKH
IRXUFROXPQVVWDQGVD&RQTXHURUFURZQHGZLWKDFLUFOHWIURPZKLFK
ULVHDQGVKLQHWKUHHSHQWDJUDPVRIJROG2QKLVFXLUDVVDUHWKUHHULJKW
DQJOHVDQGRQKLVVKRXOGHUVWKH8ULPDQG7KXPPLPV\PEROLVHGE\
WKHWZRFUHVFHQWVRIWKH0RRQLQLQFUHDVHDQGGHFUHDVH,QKLVKDQGLVD
VFHSWUHVXUPRXQWHGE\DJOREHDVTXDUHDQGDWULDQJOH+LVDWWLWXGHLV
SURXGDQGWUDQTXLO7RWKH&KDULRWLVDWWDFKHGDGRXEOHVSKLQ[RU
UDWKHUWZRVSKLQ[HVMRLQHGWRJHWKHURQHRIWKHPWXUQVLWVKHDGDQG
WKH\ERWKORRNLQWKHVDPHGLUHFWLRQ7KHVSKLQ[ZKLFKWXUQVLWVKHDG
WRZDUGVWKHRWKHULVEODFNDQGPHQDFLQJWKHRWKHULVZKLWHDQGFDOP
2QWKHVTXDUHZKLFKIRUPVWKHIURQWRIWKH&KDULRWZHVHHWKH,QGLDQ
OLQJDPVXUPRXQWHGE\WKHIO\LQJJOREHRIWKH(J\SWLDQV

7KH:KHHORI)RUWXQH²$ZKHHORIVHYHQVSRNHVWKH
FRVPRJRQLFDOZKHHORI(]HNLHOZLWKDGRJKHDGHGILJXUHDVFHQGLQJRQ
RQHVLGH $QXELVWKH(J\SWLDQ0HUFXU\ DQGDGHPRQGHVFHQGLQJRQ
WKHRWKHU WKH(J\SWLDQHYLOGHLW\7\SKRQ WKHIRUPHURIWKHVHEHDUVD
FDGXFHXVWKHODWWHUDWULGHQWERWKILJXUHVDUHERXQGWRWKHZKHHO
$ERYHWKHPLVDVSKLQ[DWWKHEDODQFHSRLQWRIWKHZKHHOKROGLQJD
GUDZQVZRUGEHWZHHQLWVOLRQ¶VFODZV

7KH'HYLO²7KURQHGRQDFXEHDERYHWKH8QLYHUVHLVDJRDW
KHDGHGVDW\UOLNHILJXUHEHDULQJRQLWVEURZWKHSHQWDJUDPDSH[
XSZDUGVRDVWRPDNHLWDV\PERORI/LJKW:LWKRQHKDQGLWSRLQWV
XSZDUGVWRWKHV\PERORIWKH0RRQLQLQFUHDVHZLWKWKHRWKHU
GRZQZDUGVWRWKDWRIWKH0RRQLQGHFUHDVHWKXVV\PEROLVLQJWKH
HWHUQDOHTXLOLEULXPRI0HUF\DQG-XVWLFHWKHILUVWWZRILQJHUVDQG
WKXPERIHDFKKDQGDUHH[WHQGHGDVLQJLYLQJWKHVLJQRIEHQHGLFWLRQ
2QHDUPLVIHPLQLQHWKHRWKHUPDVFXOLQH7KHWRUFKRILQWHOOLJHQFHLV
SODFHGEHWZHHQLWVKRUQVDVWKH0DJLFDO/LJKWRIWKH8QLYHUVDO
(TXLOLEULXP7KHFDGXFHXVZKLFKKROGVWKHSODFHRIWKHJHQHUDWLYH
RUJDQVVLJQLILHVWKHHWHUQLW\RIOLIHWKHEHOO\LVFRYHUHGZLWKVFDOHVWR
UHSUHVHQW:DWHUWKHFLUFOHDERYHLWLVWKHDWPRVSKHUHWKH:LQJVDUH
WKHHPEOHPRIWKH9RODWLOHDQGWKHGHIRUPHGDQGJRDWOLNHIHHWUHVW
XSRQWKHHDUWK

6SDFHGRHVQRWDOORZPHWRHQWHUIXUWKHULQWRWKHVXEMHFWRQZKLFK
LQGHHGVHYHUDOYROXPHVPLJKWEHZULWWHQZLWKRXWH[KDXVWLQJLW,FDQ
RQO\KRSHWKDWWKLVVKRUWWUHDWLVHZLOOVXIILFHWRJLYHP\UHDGHUVVRPH
LGHDRIWKHUHFRQGLWHPHDQLQJRIWKH7DURW&DUGVDQGKRZWRHPSOR\
WKHPLQGLYLQDWLRQ

 
>L@7KLVLVSDUWO\WDNHQE\9DLOODQWIURP&RXUWGH*qEHOLQ¶V³0RQGH
3ULPLWLI´YROS