BIS1-08 Barrier Brew (1-6)
BIS1-08 Barrier Brew (1-6)
BIS1-08 Barrier Brew (1-6)
%$55,(5%5(:
$2QH5RXQG' '/,9,1**5(<+$:.Å
%LVVHO5HJLRQDO$GYHQWXUH
9HUVLRQ
E\'RQDOG:DONHU
%UHZIHVWVWDUWVLQWKUHHGD\VEXWWKH'ZDUYHVKDYHQWDUULYHG\HW1R'ZDUYHVPHDQVQR%DUULHU%UHZDQG%DUULHU%UHZ
LVZKDWEULQJVSHRSOHWR(EEHUQDQWIRU%UHZIHVW7RPDNHPDWWHUVZRUVHDIXOOPRRQVWDUWVWRQLJKW$/LYLQJ*UH\KDZN
%LVVHOUHJLRQDOVFHQDULRIRUFKDUDFWHUVOHYHOV
'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\QRWEHUHSURGXFHGZLWKRXWDSSURYDORI WKH53*$1HWZRUN
7KLV LV DQ 53*$Ì 1HWZRUN VFHQDULR IRU WKH 'XQJHRQV 6&25,1*
'UDJRQVÌJDPH$IRXUKRXUWLPHEORFNKDVEHHQDOORFDWHG
IRUHDFKURXQGRIWKLVVFHQDULREXWWKHDFWXDOSOD\LQJWLPH $IWHU WKH SOD\HUV KDYH FRPSOHWHG WKH VFHQDULR RUWKHWLPH
ZLOOEHFORVHUWRWKUHHKRXUV7KHUHVWRIWKHWLPHLVVSHQWLQ DOORWWHGWRUXQWKHVFHQDULRKDVUXQRXWWKHSOD\HUVDQG'0
SUHSDUDWLRQ EHIRUH JDPH SOD\ DQG VFRULQJ DIWHU WKH JDPH VFRUH WKH JDPH 7KH 53*$ KDV WKUHH ZD\V WR VFRUH LWV
7KHIROORZLQJJXLGHOLQHVDUHKHUHWRKHOS\RXZLWKERWKWKH JDPHV&RQVXOW\RXUFRQYHQWLRQFRRUGLQDWRUWRGHWHUPLQH
SUHSDUDWLRQDQGYRWLQJVHJPHQWRIWKHJDPH5HDGWKLVSDJH ZKLFKPHWKRGWRXVHIRUWKLVVFHQDULR
FDUHIXOO\ VR WKDW \RX NQRZ DQG FDQ FRPPXQLFDWH WR \RXU 1RYRWH VFRULQJ 7KH SOD\HUV ZULWH WKHLU QDPHV DQG
SOD\HUVWKHVSHFLDODVSHFWVRISOD\LQJDQ53*$VFHQDULR 53*$QXPEHUVRQWKHVFRULQJSDFNHWJULG<RXILOOLQ
WKH WRS RI WKH JULG 7KDW LV DOO 1R RQH LV UDWHG 7KLV
PHWKRGLVXVHGIRUSHRSOHZKRDUHMXVWSOD\LQJIRUIXQ
35(3$5$7,21 3DUWLDO VFRULQJ 7KH SOD\HUV UDWH WKH JDPH PDVWHU DQG
)LUVW \RX VKRXOG SULQW WKLV VFHQDULR 7KLV VFHQDULR ZDV WKHVFHQDULRRQWKHLUSOD\HUYRWLQJVKHHWDQGSURYLGH
FUHDWHG WR VXSSRUW GRXEOHVLGHG SULQWLQJ EXW SULQWLQJ LW SHUVRQDOLQIRUPDWLRQEXWGRQWYRWHIRURWKHUSOD\HUV
VLQJOHVLGHGZLOOZRUNDVZHOO7KHUHLVHQRXJKURRPDORQJ 7KH JDPH PDVWHU UDWHV WKH VFHQDULR DQG FRPSOHWHV
WKHLQVLGHPDUJLQWRELQGWKHDGYHQWXUHLI\RXGHVLUH SHUVRQDODQGHYHQWLQIRUPDWLRQEXWGRHVQRWUDWHWKH
5HDGWKLVHQWLUHDGYHQWXUHDWOHDVWRQFHEHIRUH\RXUXQ SOD\HUV DV D WHDP RU YRWH IRU SOD\HUV 7KLV PHWKRG LV
\RXUJDPH%HVXUHWRIDPLOLDUL]H\RXUVHOIZLWKDQ\VSHFLDO XVHG ZKHQ WKHUH LV QR FRPSHWLWLRQ EXW WKH HYHQW
UXOHV VSHOOV RU HTXLSPHQW SUHVHQWHG LQ WKH DGYHQWXUH ,W FRRUGLQDWRU ZDQWV LQIRUPDWLRQ RQ KRZ WKH JDPH
PD\KHOSWRKLJKOLJKWSDUWLFXODUO\LPSRUWDQWSDVVDJHV PDVWHUV DUH SHUIRUPLQJ RU WKH JDPH PDVWHU ZDQWV
:KHQ \RX UXQ DQ 53*$ ' ' DGYHQWXUH ZH DVVXPH IHHGEDFNRQKLVRUKHURZQSHUIRUPDQFH
WKDW \RX KDYH DFFHVV WR WKH IROORZLQJ ERRNV WKH 3OD\HUV 9RWLQJ3OD\HUVDQGJDPHPDVWHUVFRPSOHWHWKHHQWLUH
+DQGERRN WKH 'XQJHRQ 0DVWHUV *XLGH DQG WKH 0RQVWHU SDFNHWLQFOXGLQJYRWLQJIRUEHVWSOD\HU,IWKLVPHWKRG
0DQXDO:HDOVRDVVXPHWKDW\RXKDYHDVHWRIGLFHDWOHDVW LV XVHG EH VXUH WR DOORZ DERXW PLQXWHV IRU WKH
RQH G G G G G DQG G VRPH VFUDS SDSHU D SOD\HUVWREULHIO\GHVFULEHWKHLUFKDUDFWHUVWRWKHRWKHU
SHQFLODQ53*$VFRULQJSDFNHWDQG\RXUVHQVHRIIXQ,WLV SOD\HUV DQG DERXW PLQXWHV IRU YRWLQJ 7KLV
DOVR D JRRG LGHD WR KDYH D ZD\ WR WUDFN PRYHPHQW GXULQJ PHWKRG LV XVHG ZKHQ WKH SOD\HUV ZDQW WR NQRZ ZKR
FRPEDW7KLVFDQEHDVVLPSOHDVDSDGRIJUDSKSDSHUDQGD SOD\HG WKH |EHVW} DPRQJVW WKH JURXS RU ZKHQ WKH
SHQFLO DV KDQG\ DV D YLQ\O JULG PDS DQG FKLWV RU DV DGYHQWXUH LV UXQ LQ WRXUQDPHQW IRUPDW ZLWK ZLQQHUV
HODERUDWHDVUHVLQGXQJHRQZDOOVDQGPLQLDWXUHV DQGSUL]HV
,QVWUXFW WKH SOD\HUV HLWKHU WR SUHSDUH WKHLU FKDUDFWHUV :KHQXVLQJYRWLQJUDQNWKHSOD\HUVLQRUGHURI\RXUYRWLQJ
QRZRUZDLWXQWLO\RXUHDGWKHLQWURGXFWLRQGHSHQGLQJRQ FKRLFH ZKLOH WKH\ DUH FRPSOHWLQJ WKHLU IRUPV VR WKDW \RX
WKH UHTXLUHPHQWV RI WKH VFHQDULR DV GHVFULEHG LQ WKH DUHQRWLQIOXHQFHGE\WKHLUFRPPHQWVRQ\RXUDELOLWLHV,WV
LQWURGXFWLRQ D JRRG LGHD WR KDYH WKH SOD\HUV YRWH ZKLOH \RX GHWHUPLQH
.HHSLQPLQGWKDW\RXPXVWKDYHDWOHDVWWKUHHSOD\HUV 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
WKDQVL[SOD\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'0WRNHHSWUDFNRIZKRLV
SOD\LQJZKLFKFKDUDFWHU
7KH SOD\HUV DUH IUHH WR XVH WKH JDPH UXOHV WR OHDUQ
DERXWHTXLSPHQWDQGZHDSRQVWKHLUFKDUDFWHUVDUHFDUU\LQJ
7KDWVDLG\RXDVWKH'0FDQEDUWKHXVHRIHYHQFRUHUXOH
ERRNVGXULQJFHUWDLQWLPHVRISOD\)RUH[DPSOHWKHSOD\HUV
DUH QRW IUHH WR FRQVXOW WKH'XQJHRQ0DVWHUV*XLGHZKHQ
FRQIURQWHG ZLWK D WUDS RU KD]DUG RU WKH 0RQVWHU 0DQXDO
ZKHQFRQIURQWHGZLWKDPRQVWHU
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
%DUULHU%UHZ 3DJH
7KLV LV D /,9,1* *5(<+$:. $GYHQWXUH $V D /LYLQJÎ $3/ WKDW WKLV DGYHQWXUH LV SOD\HG DW SOD\LQJ DW WKDW
DGYHQWXUHLWLVH[SHFWHGWKDWSOD\HUVZLOOEULQJWKHLURZQ FKDUDFWHU ZLOO UHFHLYH RQO\ KDOI RI WKH H[SHULHQFH SRLQWV
FKDUDFWHUV ZLWK WKHP ,I SOD\HUV GR QRW KDYH D /,9,1* DZDUGHG IRU WKH DGYHQWXUH 7KLV VLPXODWHV WKH IDFW WKDW
*5(<+$:.FKDUDFWHUJHQHUDWHGJHWDFRS\RIWKHFXUUHQW HLWKHU\RXUFKDUDFWHUZDVQRWDVFKDOOHQJHGDVQRUPDORU
/,9,1* *5(<+$:. FKDUDFWHU JHQHUDWLRQ JXLGHOLQHV D UHOLHG RQ KHOS E\ KLJKHUOHYHO FKDUDFWHUV WR UHDFK WKH
FKDUDFWHU VKHHW DQG D /,9,1* *5(<+$:.ORJVKHHWIURP REMHFWLYHV
\RXUFRQYHQWLRQFRRUGLQDWRURUWKH53*$:HEVLWHDQG
WKHQ KDYH DQ\ SOD\HUV ZLWKRXW D FKDUDFWHU FUHDWH RQH 1RWH/,9,1**5(<+$:.DGYHQWXUHVDUHGHVLJQHGIRU$3/
2QFHDOOSOD\HUVKDYHD/,9,1**5(<+$:.FKDUDFWHUSOD\ DQG KLJKHU 7KUHH RU IRXU RU VRPHWLPHV HYHQ ILYH VW
FDQEHJLQ OHYHOFKDUDFWHUVPD\ILQGGLIILFXOW\ZLWKWKHFKDOOHQJHVLQ
$ORQJZLWKWKHRWKHUPDWHULDOVWKDW\RXDUHDVVXPHG D /,9,1* *5(<+$:. DGYHQWXUH ,I \RXU JURXS LV $3/
WR KDYH LQ RUGHU WR UXQ D ' ' JDPH LW LV DOVR WKHUH DUH WKUHH WKLQJV WKDW \RX FDQ GR WR KHOS HYHQ WKH
UHFRPPHQGHG WKDW \RX KDYH D FRS\ RI WKH /,9,1* VFRUH
*5(<+$:.*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/ FRPPDQGWKDWPD\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
SDODGLQVPRXQWVHWFXVHWKHIROORZLQJFKDUWWR 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\ WKDWXVHVWKHROG7LHUVDVVXPHWKDWWKH7LHUPXOWLSOLHGE\
&5 LVWKH$3/VXLWDEOHIRUWKDWHQFRXQWHU
DQG
DQG ,6,7$)8//0221"
<HV 7KH DGYHQWXUH EHJLQV DW GXVN RQ WKH WK GD\ RI
+DUYHVWHU *RGVGD\ /XQD KDV MXVW EHFRPH IXOO DQG ZLOO
UHPDLQ IXOO IRU WKH ILUVW WKUHH QLJKWV RI WKH DGYHQWXUH
6XP WKH UHVXOWV RI DQG DQG GLYLGH E\ WKH $IWHU WKH WKLUG QLJKW RI WKH DGYHQWXUH WKH PRRQ LV QR
QXPEHU RI FKDUDFWHUV SOD\LQJ LQ WKH ORQJHUIXOO
DGYHQWXUH{URXQGXS
,I\RXDUHUXQQLQJDWDEOHRIVL[3&VDGGRQHWR /,)(67</(
WKDWDYHUDJH $WWKHEHJLQQLQJRIHYHU\VFHQDULRHDFK3&LVUHTXLUHGWR
SD\XSNHHSFRVWVPDWFKLQJWKHOHYHORIOLIHVW\OHWKH\ZLVK
%\ IROORZLQJ WKHVH IRXU VWHSV \RX ZLOO KDYH GHWHUPLQHG WR PDLQWDLQ 7KH OLIHVW\OHV DQG WKH HIIHFWV WKDW HDFK KDV
WKH$3/7KURXJKRXWWKLVDGYHQWXUH$3/VFDWHJRUL]HWKH RQSOD\DUH
OHYHO RI FKDOOHQJH WKH 3&V ZLOO IDFH $3/V DUH JLYHQ LQ
HYHQQXPEHUHG LQFUHPHQWV ,I WKH $3/ RI \RXU JURXS 'HVWLWXWH <RX KDYH QR OLYLQJ VSDFH DQG PXVW FDUU\ DOO
IDOOV RQ DQ RGG QXPEHU DVN WKHP EHIRUH WKH DGYHQWXUH \RXU JHDU HYHU\ZKHUH <RX HDW SRRU TXDOLW\ IRRG <RX
EHJLQVZKHWKHUWKH\ZRXOGOLNHWRSOD\DKDUGHURUHDVLHU ZHDUDSHDVDQWRXWILW\RXURQO\FKDQJHRIFORWKHV
DGYHQWXUH%DVHGRQWKHLUFKRLFHXVHHLWKHUWKHKLJKHURU
WKHORZHUDGMDFHQW$3/ 3RRU <RX VOHHS LQ SRRU DFFRPPRGDWLRQV DQG HDW SRRU
$3/ DOVR DIIHFWV WKH DPRXQW RI H[SHULHQFH \RX PD\ TXDOLW\IRRG<RXZHDUDSHDVDQWRXWILWDQGKDYHWZRVHWV
JDLQDWWKHHQGRIDQDGYHQWXUH,I\RXUFKDUDFWHULVWKUHH RIFORWKLQJ
FKDUDFWHU OHYHOV RU PRUH HLWKHU KLJKHU RU ORZHU WKDQ WKH
%DUULHU%UHZ 3DJH
&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 JS
3RRU JS
&RPPRQ JS
+LJK JS
/X[XU\ JS
%DUULHU%UHZ 3DJH
ZLOOQRWHWKHVWDIILVDERXWIWORQJZLWKUXQLFPDUNLQJV
$'9(1785(6800$5<$1' DORQJ WKH OHQJWK 7KH KHDG LV PDGH RI VWRQH DQG LV
%$&.*5281' DWWDFKHG E\ D VLONOLNH ILEHU WR WKH VWDII 7KH KRH LV
DFWXDOO\ D VWDII EURXJKW WR WKLV DUHD E\ 0HGLJ D GZDUYHQ
7KH IHVWLYDO ZHHN RI %UHZIHVW EULQJV PDQ\ WUDYHOHUV WR FOHULF RI 0RUDGLQ ZKR OHG KLV IDPLO\ HDVW LQWR WKH
(EEHUQDQWDODUJHWRZQLQWKHQRUWKZHVWFRUQHURI%LVVHO IRRWKLOOV7ZRVRQVRI0HGLJ0HGRUDQG0HGLEORVWWKH
(EEHUQDQWLVIDPRXVIRULWVGDUNKHDY\DQGELWWHU%DUULHU VWDII ZKLOH WKH\ ZHUH SOD\LQJ RQ WKH EDQNV RI
%UHZ7KHUHFLSHLVFDUHIXOO\JXDUGHGE\DFODQRIGZDUYHV 8QGHUEURRN 7KH\ ZHUH QRW VXSSRVHG WR WRXFK WKH VWDII
ZKR OLYH MXVW WR WKH VRXWK DQG ZHVW RI (EEHUQDQW LQ WKH DQG IRUJRW LW ZKHQ WKH\ ZHUH VWDUWOHG E\ D QRLVH /DWHU
IRRWKLOOVRIWKH%DUULHU3HDNV,QIDFWWKHRQO\WLPH%DUULHU WKH\UHPHPEHUHGLWEXWFRXOGQRWILQGLW
%UHZFDQEHKDGLVZKHQWKHGZDUYHVEULQJLWGRZQIURP $IWHU DQLJKWDWWKHPRQDVWHU\WKH3&VFRQWLQXHRQ
WKHLUVHWWOHPHQWXQGHU0HGLJV+LOOWR(EEHUQDQWIRUWKH WR 0HGLJV +LOO 7KH\ UHDFK WKH HQWUDQFH WR WKHGZDUYHQ
DQQXDO%UHZIHVWIHVWLYDOZHHN1RUPDOO\WKH\PLQHRUHLQ VHWWOHPHQW E\ PLGPRUQLQJ $Q XQJXDUGHG RSHQLQJ
WKH IRRWKLOOV DQG EULQJ WKH RUH WR (EEHUQDQW WR WUDGH IRU H[WHQGVLQWRWKHGDUNQHVVXQGHU0HGLJV+LOO7KHSODFHLV
IRRGDQGFUDIWJRRGVWKDWWKH\GRQWKDYHWKHPDWHULDOVRU GHVHUWHG DQG WKH EXLOGLQJV DSSHDU ORQJ HPSW\ +HDULQJ
LQWHUHVWWRPDNHWKHPVHOYHV VHYHUDO VKRXWV IURP DQ RSHQLQJ WR WKH VRXWK WKH 3&V
%XWWKLV\HDUIRUVRPHUHDVRQWKHGZDUYHVKDYHQRW FRPH XSRQ D FDUULRQ FUDZOHU PHQDFLQJ VHYHUDO GZDUYHV
FRPHWR(EEHUQDQW7KHWRZQVIRONKDYHQRWLFHGEXWPRVW $IWHU WKH 3&V GLVSDWFK WKH PRQVWHUV WKH\ OHDUQ RI D
DVVXPH WKH GZDUYHV ZLOO VKRZ XS DQ\ GD\ QRZ 6XFK LV GZDUYHQ IHXG FDXVHG E\ WKH ORVV RI 0HGLJV VWDII ,I WKH
QRW WKH FDVH IRU (OKDGLE 5DPLQ] WKH RZQHU RI D ORFDO 3&V PHQWLRQ WKH PRQNVKRH0HGRUZLOOFRQWDFW0HGLE
WDYHUQ 7KH 3LFN DQG 6KRYHO ZKR SURPRWHV WKH DQQXDO YLD D VHQGLQJ VSHOO %RWK ZLOO FDOO D WUXFH WR WKH ILJKWLQJ
%LVVHO 6WHZ FRQWHVW +LV SDWURQV H[SHFW WR EH VHUYHG DQG 0HGRU ZLOO DVN WKH 3&V WR EULQJ WKH PRQNV KRH WR
%DUULHU%UHZZLWKWKHLU%LVVHO6WHZ1RWKLQJHOVHZLOOGR KLPLQWKHKRSHVWKDWWKLVPD\EHWKHORVWVWDIIRI0HGLJ
7KHGZDUYHVDUHXVXDOO\LQWRZQDZHHNEHIRUHWKHIHVWLYDO $V WKH 3&V UHWXUQ WR WKH PRQNV WKH\ HQFRXQWHU D
WR VHOO WKHLU %UHZ DQG YLVLW ZLWK WKH ORFDO 6PHOWHUV WR VWURQJ JREOLQ IRUFH DQG PXVW GHIHDW WKHP 7KH\ VRRQ
GLVFXVV IXWXUH WUDGH DJUHHPHQWV %XW WKH\ DUH DOUHDG\ OHDUQ WKDW WKHVH JREOLQV KDYH MXVW FRPH IURP WKH
GD\VODWH PRQDVWHU\ ZKLFK WKH\ KDYH EXUQHG WR WKH JURXQG 7KH
7KLVVFHQDULRLVVHWGXULQJWKHZHHNEHIRUH%UHZIHVW PRQNVDUHQRZSLFNLQJWKURXJKWKHEXUQWRXWUHPDLQVLQ
LQWKH0DUFKRI%LVVHOVQRUWKZHVWHUQWRZQRI(EEHUQDQW WKH KRSHV RI VDOYDJLQJ DQ\WKLQJ /XFNLO\ WKH KRH
7KH SORW WDNHV WKH FKDUDFWHUV LQWR WKHQHDUE\IRRWKLOOVRI VXUYLYHGKLGGHQE\RQHRIWKHPRQNV7KHPRQNVUHWXUQ
WKH %DUULHU 3HDNV WR GLVFRYHU ZK\ WKH QHDUE\ GZDUYHQ ZLWKWKH3&VWR0HGLJV+LOODQGOHWWKHGZDUYHVH[DPLQH
FODQKDVQRW\HWDUULYHGLQ(EEHUQDQWIRUWKHIHVWLYDO WKH KRH 7KH GZDUYHV DUH RYHUMR\HG DW ILQGLQJ 0HGLJV
,WLVDVVXPHGWKDWWKH3&VKDYHWUDYHOHGWR(EEHUQDQW 6WDII LQ DQ HPRWLRQOHVV NLQG RI ZD\ DQG RIIHU WR EXLOG D
WR HQMR\ WKH VLJKWV VRXQGV DQG WDVWHV RI %UHZIHVW DQG VWRQHPRQDVWHU\RQ0HGLJV+LOOIRUWKHPRQNV
SHUKDSV VDPSOH (EEHUQDQWV IDPRXV %DUULHU %UHZ PDGH (YHU PLQGIXO RI WKH ORRPLQJ IHVWLYDO WKH 3&V DUH
E\ WKH GZDUYHV RI 0HGLJV +LOO $V WKH 3&V DUULYH WKH DVNHGWREULQJDZDJRQILOOHGZLWKEDUUHOVRI%DUULHU%UHZ
WRZQLVRYHUO\TXLHWRQWKLV*RGVGD\7KH3&VDUULYHDWD WR (EEHUQDQW LQ WLPH IRU %UHZIHVW 0HDQZKLOH WKH
WDYHUQ 7KH 3LFN DQG 6KRYHO IRXU QLJKWV EHIRUH WKH VWDUW GZDUYHVZRUNWRORDGWKHUHPDLQLQJZDJRQV
RI%UHZIHVW,WLVWKHWKGD\LQWKHPRQWKRI+DUYHVWHU $VWKH\SDVVWKHFOHDULQJZKHUHWKH\PHWWKHILUVWVHW
6SHDNLQJWR(OKDGLE5DPLQ]DSRUWO\%DNOXQLVKPDQ RI JREOLQV WKH\ DUH DWWDFNHG E\ D UDYHQRXV EHDVW ZKR LV
DQG WKH WDYHUQ RZQHU WKH\ OHDUQ WKDW WKH GZDUYHV KDYH IHDVWLQJ RQ WKH JREOLQV IURP HQFRXQWHU RQH $VVXPLQJ
QRW \HW DUULYHG LQ WRZQ (OKDGLE H[SODLQV WKLV DQG KLV WKH 3&V GHIHDW WKH EHDVW DQG PDNH LW VDIHO\ EDFN WR
FRQFHUQ WKDW VRPHWKLQJ TXLWH IULJKWIXO KDV KDSSHQHG WR (EEHUQDQWWKH%UHZIHVWFHOHEUDWLRQEHJLQVZLWKSOHQW\RI
0HGLJV&ODQ %DUULHU%UHZDQG%LVVHO6WHZIRUDOO
7KH3&VDUHH[SHFWHGWRRIIHUKHOSDQGILQGRXWZKDW
KDV KDSSHQHG WR WKH GZDUYHV (OKDGLE SURYLGHV ZKDW
LQIRUPDWLRQKHFDQLQUHVSRQVHWRWKH3&VTXHVWLRQVDQG
KHRIIHUVWKHSDUW\ZKDWKHFDQ+HVXJJHVWVWKH\OHDYHIRU '0,1)250$7,21
0HGLJV +LOO LQ WKH PRUQLQJ VLQFH WKH URDGV FDQ EH YHU\
WUHDFKHURXVDWQLJKWDQGLWLVH[SHFWHGWRUDLQ 7+(72:16+,32)
,IWKH3&VVHWRXWWKDWQLJKWWKH\HQFRXQWHUDVWURQJ
EDQGRIJREOLQVDQGZRUJVRQWKHURDG,IWKH\ZDLWXQWLO
(%%(51$17
PRUQLQJWKH\HQFRXQWHUDZHDNHUDPEXVKURXJKO\LQWKH 2UGHUVIURPWKH0DUJUDYHUHTXLUHDXWKRULWLHVWRLPSRVHD
VDPH SODFH LQVWHDG 7KH 3&V ILQG D PRQN ERXQG DQG WD[RQDOOFLWL]HQVRI%DNOXQLVKRULJLQDVDPHDQVWRUDLVH
JDJJHGE\WKHJREOLQVDQGDIWHUUHOHDVLQJKLPKHVXJJHVWV IXQGVWRFOHDQXSDIWHUWKHUHFHQWLQYDVLRQDQGRFFXSDWLRQ
WKH\WDNHVKHOWHUDWKLVQHDUE\PRQDVWHU\ RI%LVVHOE\IRUFHVRI.HW(DFKEDURQDQGPD\RULQ%LVVHO
$WWKHPRQDVWHU\WKH3&VREVHUYHWKHPRQNVXVLQJD KDV JRQH WR GLIIHUHQW OHQJWKV WR LPSOHPHQW WKLV WD[ DQG
VWUDQJH KRH WR JURZ PXVKURRPV ,I TXHVWLRQHG WKH\ZLOO WKHORFDOPD\RUKDVGHFLGHGWRVLPSO\WD[HYHU\RQHUDWKHU
H[SODLQWKDWRQHRIWKHLUPHPEHUVIRXQGWKHGHYLFHQHDUD WKDQ LPSRVH DQ XQIDLU WD[ 3HRSOH RI 6XHO RU 2HULGLDQ
VWUHDPEHG PDQ\ \HDUV DJR ,I H[DPLQHG FORVHO\ WKH 3&V RULJLQ VKRXOG WUHDG FDUHIXOO\ DV WHQVLRQV LQ WKLV DUHD DUH
DOUHDG\ KLJK GXH WR WKH QHDU WULSOH WD[HV EHLQJ HQIRUFHG
%DUULHU%UHZ 3DJH
XSRQ%DNOXQLVKDFURVVWKH0DUFK:LWKWKHH[FHSWLRQRI N 7KHGZDUYHVVKRXOGKDYHDUULYHGDWOHDVWGD\VDJR
KDOIRUFV ZKLFK DUH GLVWUXVWHG DQG GLVOLNHG HYHQ PRUH N 0HGLJV +LOO LV ORFDWHG WR WKH VRXWK DQG ZHVW RI
WKDQWKRVHRIREYLRXV6XHORU2HULGLDQEORRGPRVWGHPL (EEHUQDQW
KXPDQVHOYHVJQRPHVKDOIOLQJVDUHPHWZLWKDQHXWUDO
N ,WLVDWOHDVWRQHGD\VMRXUQH\WR0HGLJV+LOO
DWWLWXGH DQG GZDUYHV DUH ZHOFRPHG ZDUPO\ LQ
(EEHUQDQW N 7RJHWWR0HGLJV+LOOWUDYHOGRZQWKH5HDOVWUHDPWR
(EEHUQDQW LV DQ LQGHSHQGHQW WRZQVKLS RI WKHROGVWRQHEULGJH)URPWKHUHKHDGZHVWDORQJWKH
DSSUR[LPDWHO\ UHVLGHQWV LQ WKH %DNOXQLVK 8QGHUEURRN
GRPLQDWHGQRUWKZHVWFRUQHURI%LVVHO0DLQO\DWRZQIRU N 7KHUHLVDIHUU\DFURVVWKH5HDOVWUHDPDW(EEHUQDQW,W
WKH PLQHUV RI WKH QHDUE\ %DUULHU 3HDNV DQG WKRVH ZKR FRVWVVSSHUSHUVRQRUPRXQW
WUDGH ZLWK WKHP WKH SRSXODWLRQ LV DSSUR[LPDWHO\ WZR JS SHU ZDJRQ LQFOXGLQJ KRUVHVPXOHV DQG
WKLUGV KXPDQ DQG DOPRVW RQHWKLUG PRXQWDLQ GZDUI SDVVHQJHUV
0RVWKXPDQVLQ(EEHUQDQWDUH%DNOXQLVK N 7KHURDGVDUHYHU\GDQJHURXVDWQLJKWHYHQPRUHVR
,IWKH3&VFKRRVHWRH[SORUHWKHWRZQWKH\FDQILQG QRZWKDW/XQDLVIXOO
VKRSV ZKHUH VWDQGDUG LWHPV IURP WKH 3+% DUH DYDLODEOH N 7KHUHZLOOEHDEDGVWRUPWRQLJKW
IRUVDOHVHH$SSHQGL[&IRUGHWDLOV
,I WKH 3&V RIIHU WR VHH ZKDWV EHFRPH RI WKH GZDUYHV
(OKDGLE ZLOO JLYH WKH 3&V GLQQHU EUHDNIDVWDQGWRQLJKWV
,1752'8&7,21(%%(51$17 ORGJLQJIUHH,IWKH\UHWXUQZLWKJRRGQHZVKHZLOOFRYHU
WKHLU/LIHVW\OH&RVWVXSWRD&RPPRQ/LIHVW\OH
<RX DUH LQ (EEHUQDQW D SULPDULO\ %DNOXQLVK DQG GZDUYHQ 9DULRXV 13&V LQ WKH WDYHUQ FDQ FRQILUP WKH
WRZQ LQ WKH QRUWKZHVW FRUQHU RI %LVVHO 7KH IRRWKLOOV RI WKH LQIRUPDWLRQ (OKDGLE SURYLGHV EXW WKH\ ZLOO QRW EH
%DUULHU 3HDNV ULVH WR WKH QRUWK DQG ZHVW DQG WKH 5HDOVWUHDP FRQFHUQHG DERXW WKH PLVVLQJ GZDUYHV 7KH\ DUH VXUH WKH
PHDQGHUVQHDUE\,QOHVVWKDQIRXUGD\VWKHZHHNORQJIHVWLYDORI GZDUYHV ZLOO VKRZ XS DQ\ GD\ QRZ 3&V PDNLQJ
%UHZIHVWEHJLQV<RXYHKHDUGWKDWWKH3LFNDQG6KRYHODWDYHUQ VXFFHVVIXO*DWKHU,QIRUPDWLRQFKHFNV'&FDQEHJLYH
VHWRQWKHRXWVNLUWVRIWKH0HUFKDQWV4XDUWHUVHUYHVWKHEHVWIRRG LQIRUPDWLRQ IURP $SSHQGL[ % WKH 0HGLJ &ODQ VHFWLRQ
DQGGULQNLQWRZQ RQO\
,I WKH 3&V QHHG WR EX\ DQ\ VXSSOLHV RU VHUYLFHV WKH
$V \RX PDNH \RXU ZD\ WR WKH 3LFN DQG 6KRYHO \RX ZDWFK WKH WRZQ RI (EEHUQDQW VKRXOG EH DEOH WR SURYLGH WKHP VHH
VXQ VHW EHKLQG WKH %DUULHU 3HDNV 7KH VWUHHWV DUH PRVWO\ HPSW\ $SSHQGL[&
WKLVODVW*RGVGD\RIWKHPRQWKRI+DUYHVWHU &KHFN 3& ORJ VKHHWV IRU DQ\ O\FDQWKURSHV LQ WKH
SDUW\EHFDXVHLWLVDIXOOPRRQIRUWKHQH[WWKUHHQLJKWV$
WUDQVIRUPHG 3& ZLOO QHHG WR PDNH D +LGH FKHFN 5ROO D
(QFRXQWHU7KH3LFNDQG6KRYHO VSRW FKHFN IRU D QLJKW SDWURO RI WKH WRZQ JXDUGV WR
5HDFKLQJWKH3LFNDQG6KRYHO\RXQRWHWKDWLWLVDODUJHWKUHH FKHFNDW$3/DW$3/DW$3/,IWKHJXDUGV
VWRU\EXLOGLQJZLWKDQDGMRLQLQJVWDEOHDQGIHQFHG\DUGLQWKH ILQGDZHUHFUHDWXUHWKH\ZLOODWWHPSWWRFDSWXUHLW
EDFN $ ODUJH VKLHOG SDLQWHG ZLWK D VSOLW ILHOG RI UHG DQG EOXH
ZLWK D EODFN WRZHU LQ LWV FHQWHU LV PRXQWHG MXVW DERYH WKH
HQWUDQFHZD\$UHDOSLFNDQGVKRYHODUHPRXQWHGRQHLWKHUVLGH
RI WKH VKLHOG (QWHULQJ \RX QRWH VHYHUDO RWKHUV ZKR KDYH MXVW (1&2817(5$0%86+
DUULYHGDQGWDNHDVHDWDWWKHLUWDEOH
7KH3&VDUHWUDYHOLQJDORQJDIRRWZLGHURDGZLWKWUHHV
7KHSOD\HUVPD\LQWURGXFHWKHLU3&VQRZ RQERWKVLGHVDWDSSUR[LPDWHO\IRRWLQWHUYDOV7RWKHLU
ULJKWLVDIRRWGLDPHWHUFOHDULQJZLWKWUHHVHYHU\IHHW
,QVKRUWRUGHUDSRUWO\%DNOXQLVKPDQRIDERXW\HDUVZDONV DORQJWKHHGJHRIWKHFOHDULQJ
RYHUWR\RXUWDEOH|$KIULHQGVZHOFRPHWRP\HVWDEOLVKPHQW,
DP (OKDGLE 5DPLQ] 6R \RXYH DUULYHG D IHZ GD\V HDUO\ IRU $V\RXSDVVE\DVPDOOFOHDULQJRQWKHVLGHRIWKHURDG\RXQRWLFH
%UHZIHVW HK" ([FHOOHQW :H VHUYH WKH EHVW IRRG DQG GULQN LQ D UDEELW VLWWLQJ RQ WRS RI D WUHH VWXPS DW WKH IDU HQG RI WKH
(EEHUQDQW2IFRXUVHRXUSULFHVDUHDELWPRUHH[SHQVLYHPRVWO\ FOHDULQJ
EHFDXVHRIWKHIHVWLYDOEXW,PVXUH\RXXQGHUVWDQG}
|%\WKHZD\GLG\RXKDSSHQWRVHHDQ\GZDUYHVEULQJLQJ *LYHWKHP3OD\HU+DQGRXWz7KH&OHDULQJ
EDUUHOVDVELJDVWKHPLQWRWKHFLW\"1R":KHUHFDQWKH\EH"<RX ,I WKH 3&V GHFLGHWRLJQRUHWKHFOHDULQJWKHJREOLQV
NQRZ LWV QRW OLNH WKH GZDUYHV RI 0HGLJV +LOO WR EH ODWH IRU DWWDFN
DQ\WKLQJ (VSHFLDOO\ ZKHQ LW LV VRPHWKLQJ DV LPSRUWDQW DV ,I WKH 3&V ZDQW WR H[DPLQH WKH FOHDULQJ IURP WKH
%UHZIHVW6RPHWKLQJKRUUHQGRXVPXVWKDYHKDSSHQHGWRWKHP} URDGKDYHWKHPUROOD6SRWFKHFN7KH'&RIWKHFKHFNLV
UHGXFHE\LIWKH3&VHQWHUWKHFOHDULQJ
$W WKLV SRLQW (OKDGLEV UHVSRQGV WR WKH 3&V TXHVWLRQV
8VH WKH LQIRUPDWLRQ LQ $SSHQGL[ $ z 7KH 3LFN DQG '& 'ULHG OHDYHV DQG EUDQFKHV DUH VFDWWHUHG RQ WKH
6KRYHOWRKHOSEULQJWKHWDYHUQWROLIH JURXQG
(OKDGLEKDVWKHIROORZLQJLQIRUPDWLRQ
%DUULHU%UHZ 3DJH
'& ,W ORRNV OLNH VRPHRQH KDV WULHG WR EUXVK DZD\ 'DUNYLVLRQIW$/&(69)RUW5HI:LOO6WU
IRRWSULQWVLQWKHGLUW 'H[&RQ,QW:LV&KD
'& 7KH UDEELW LV QRW PRYLQJ 7KHUH LV D YHUWLFDO 6NLOOV DQG )HDWV &OLPE +LGH /LVWHQ 0RYH
FUDFNLQWKHEDUNRIWKHVWXPS 6LOHQWO\ 6SRW $OHUWQHVV ([RWLF :HDSRQ
'& 7KHUH LV D FUXGH SLW WUDS LQ IURQW RI WKH VWXPS 3URILFLHQF\>QHW@,PSURYHG,QLWLDWLYH
6RPH RI WKH WUHHV DUH VZD\LQJ PRUH WKDQ WKH\ VKRXOG LQ 7ZRJREOLQVHDFKFDUU\RQHQHWUDQJHGDWWDFN
WKHEUHH]H
'& 7KHUH DUH VRPH JREOLQV KLGLQJ EHKLQG VHYHUDO ,IWKHHQFRXQWHUWDNHVSODFHDWQLJKWDGGRQHZRUJDW7LHU
WUHHV7ZRJREOLQVDUHKLGLQJLQWKHWUHHVDORQJWKHURDG 2QHWZRZRUJVDW7LHU7ZRDQGIRXUZRUJVDW7LHU7KUHH
DQGKDYHQHWV 7KHLU JREOLQ ULGHUV JDLQ D ERQXV WR 5LGH FKHFNV DQG
,I D 3& PRYHV WR H[DPLQH WKH VWXPS XS FORVH WKH\ WKH0RXQWHG&RPEDWIHDW
HQFRXQWHUDIW[IWSLWWUDSGLUHFWO\LQIURQWRIWKH
VWXPS :RUJV RU RU KS HDFK VHH 0RQVWHU 0DQXDO
SDJH
$3/(/
7DFWLFV 7KH JREOLQV ZLOO ZDLW XQWLO WKH PRVW RSSRUWXQH
3LW 7UDS )W 'HHS &5 QR DWWDFN UROO QHFHVVDU\ PRPHQW EHIRUH VSULQJLQJ WKHLU DPEXVK 7KH\ ZLOO WU\ WR
G5HIOH[VDYHDYRLGV'&6HDUFK'&'LVDEOH DOORZRQHRUWZR3&VWRIDOOLQWRWKHSLWEHIRUHDWWDFNLQJ
'HYLFH'& ,I LW ORRNV OLNH WKH 3&V SODQ WR OHDYH WKH\ ZLOO DWWDFN ,I
WKHJREOLQVQRWLFHWKH\KDYHEHHQVSRWWHGWKH\ZLOODWWDFN
$3/(/ 6SRWFKHFN'&DXWRPDWLFVXFFHVVLID3&SRLQWVWKHP
3LW 7UDS )W 'HHS &5 QR DWWDFN UROO QHFHVVDU\ RXW
G5HIOH[VDYHDYRLGV'&6HDUFK'&'LVDEOH 7KHJREOLQVZLWKWKHQHWVLQWKHWUHHVZLOOILUVWWU\WR
'HYLFH'& HQVQDUH3&VEHIRUHWKURZLQJMDYHOLQV
7UHDVXUHJSLQPLVFHOODQHRXVFRLQV
$3/(/ ,IWKH3&VVXUYLYHWKHDPEXVKUHDGWKLV
3LW 7UDS )W 'HHS &5 QR DWWDFN UROO QHFHVVDU\
G5HIOH[VDYHDYRLGV'&6HDUFK'&'LVDEOH &DUHIXOO\FKHFNLQJWKHFOHDULQJ\RXILQGWKDWWKHUDEELWLVGHDG
'HYLFH'& ,WDSSHDUVWKHJREOLQVSURSSHGLWXSRQWKHVWXPSLQRUGHUWROXUH
\RXKHUH1HDUE\\RXKHDUPXIIOHGFULHVIRUKHOS&KHFNLQJWKH
&UHDWXUHV 7ZR JREOLQV KLGH LQ WKH WUHHV ZLWK QHWV WKH ZRRGV\RXILQGDKXPDQGUHVVHGLQWKHUREHVRIDPRQNERXQG
UHVWKLGHEHKLQGWUHHV DQGJDJJHGREYLRXVO\DSULVRQHURIWKHJREOLQV
,IWKH3&VXQWLHWKHPRQNKHZLOOWHOOWKHPWKHIROORZLQJ
$3/(/
*REOLQV KS HDFK VHH 0RQVWHU 0DQXDO SDJH 0\ QDPH LV :DQGHULQJ 0LVW 7KRVH YLOH EHDVWV FDSWXUHG PH D
7ZR KDYH QHWV LQ DGGLWLRQ WR WKHLU QRUPDO ZHDSRQV EXW IHZ KRXUV DJR 0\ PRQDVWHU\ LV QRW IDU IURP KHUH ,I \RX FDQ
WKH\DUHQRWSURILFLHQWZLWKWKHP HVFRUWPHWKHUHVDIHO\,PVXUHP\EUHWKUHQZLOOUHZDUG\RXIRU
\RXUNLQGQHVV
$3/(/
,I WKH 3&V FKRRVH QRW WR KHOSRUIROORZ:DQGHULQJ0LVW
*REOLQV )WU &5 6PDOO +XPDQRLG *REOLQRLG OHWWKHPZDQGHUDVWKH\PD\,IWKH\FKRRVHWRIROORZWKH
+' G KS HDFK ,QLW 'H[ 6SG IW $& RYHUJURZQSDWKRUWKHVWUHDPOHWWKHPUHDFK0HGLJV+LOO
WRXFK IODWIRRWHG > 'H[ VL]H VWXGGHG WKHIROORZLQJPRUQLQJEXWQRWEHIRUHDQLJKWRIFROGUDLQ
OHDWKHU@ $WN PHOHH G[ PRUQLQJVWDU RU ZLWK RQO\ VFDWWHUHG WUHHV IRU VKHOWHU0DNHLWDPLVHUDEOH
UDQJHG G[ MDYHOLQ 64 'DUNYLVLRQ IW $/ &( QLJKW
69)RUW5HI:LOO6WU'H[&RQ,QW
:LV&KD :DQGHULQJ0LVW0DOH+XPDQ0QN
6NLOOV DQG )HDWV &OLPE +LGH /LVWHQ 0RYH
6LOHQWO\ 6SRW $OHUWQHVV ([RWLF :HDSRQ
3URILFLHQF\>QHW@
7ZRJREOLQVHDFKFDUU\RQHQHWUDQJHGDWWDFN (1&2817(57+(
$3/(/
021$67(5<
*REOLQV )WU &5 6PDOO +XPDQRLG *REOLQRLG 2QFH WKH SOD\HUV UHDFK WKH 0RQDVWHU\ \RX PD\ VKRZ
+'GKSHDFK,QLW'H[,PSURYHG,QLWLDWLYH WKHP'0V$LGz6FHQDULR0DS7KHPRQNVZRXOGEH
6SG IW $& WRXFK IODWIRRWHG > 'H[ DEOHWRSURYLGHWKLVLQIRUPDWLRQWRWKHSDUW\
VL]H VWXGGHG OHDWKHU@ $WN PHOHH G[
PRUQLQJVWDU RU UDQJHG G[ MDYHOLQ 64
%DUULHU%UHZ 3DJH
7KHJUDWHIXOPRQN:DQGHULQJ0LVWOHDGV\RXWRKLVPRQDVWHU\ 0RYLQJWRLQYHVWLJDWH\RXILQGDVPDOOWXQQHOOHDGLQJVRXWK$
,WLVDZRRGHQIHQFHGFRPSRXQGUHVWLQJDWWKHWRSRIDORZEURDG IHZPRUHVWHSVDQG\RXVHHDQRWKHUFKDPEHUZLWKDVPDOOSRRORI
KLOO RYHUORRNLQJ WKH EURRN \RX KDYH EHHQ IROORZLQJ ZHVW <RX ZDWHUOHDGLQJRXW7KHUHDUHVHYHUDOVWRQHEXLOGLQJVDURXQGDQ
SDVVE\WHUUDFHGJDUGHQVRIIORZHUVDQGFURSVRQ\RXUZD\WRWKH RSHQDUHDDSSUR[LPDWHO\IHHWE\IHHW1HDUWKHSRRO\RXVHH
FRPSRXQG2QFHLQVLGH\RXDUHJLYHQDSODFHWRUHVWDQGFOHDQ DZKLWHKDLUHGGZDUIIUR]HQLQSODFH+HLVVWDQGLQJLQIURQWRI
XS<RXDUHSUHVHQWHGZLWKPDVWHUZRUNVLOYHUHGVOLQJEXOOHWV VHYHUDO\RXQJIHPDOHGZDUYHVDQGWKHLUFKLOGUHQDVLIWRSURWHFW
DV D WKDQN \RX IRU UHVFXLQJ :DQGHULQJ 0LVW <RX DUH DOVR WKHP%HWZHHQ\RXDQGWKHLPPRELOHGZDUI\RXVHHDIRRWORQJ
LQYLWHGWRVKDUHWKHPRQNVHYHQLQJPHDO PXOWLOHJJHG FURVV EHWZHHQ D ZRUP DQG D FHSKDORSRG ZLWK
WHQWDFOHV SURWUXGLQJ IURP DURXQG LWV PHQDFLQJ PDQGLEOHV $
$OORZWKH3&VWRDFFHSWRUGHFOLQHDQGWRVWDWHDQ\DFWLRQV UDQNRGRUILOOVWKHURRP
WKH\DUHWDNLQJDWWKLVWLPH
,I DQ\ 3&V DUH LQMXUHG WKH PRQNV ZLOO RIIHU WKHP D $3/(/
VSHFLDO PXVKURRP WR HDW ZKLFK ZLOO FXUH G SRLQWV RI
GDPDJH,ITXHVWLRQHGDERXWWKHPXVKURRPV:DQGHULQJ &DUULRQ&UDZOHUKSVHH0RQVWHU0DQXDOSDJH
0LVWZLOOH[SODLQWKH\DUHJURZQZLWKWKHXVHRIDPDJLF
KRHWKDWWKHPRQNVIRXQGE\DVWUHDPEHGPDQ\\HDUVDJR 7LHU7ZR(/
7KH PRQNV ZLOO OHW WKH 3&V H[DPLQH WKH KRH LI DVNHG ,I &DUULRQ &UDZOHUV KS HDFK VHH 0RQVWHU 0DQXDO
H[DPLQHGFORVHO\WKH3&VZLOOQRWHWKHKRHLVDERXWIW SDJH
ORQJ ZLWK UXQLF PDUNLQJV GZDUYHQ IRU |IRRG IRU OLIH}
DORQJ WKH OHQJWK 7KH KHDG LV PDGH RI VWRQH DQG LV 7LHU7KUHH(/
DWWDFKHGE\DVLONOLNHILEHUWRWKHVWDII &DUULRQ &UDZOHUV KS HDFK VHH 0RQVWHU 0DQXDO
:KHQ WKH 3&V DUH UHDG\ WR OHDYH LI WKH\ KDYH QRW SDJH
HQFRXQWHUHGWKHKRH\HWUHDGWKLV
7DFWLFV7KHFDUULRQFUDZOHUVZLOODWWHPSWWRSDUDO\]HDOO
$V \RX OHDYH \RX QRWLFH D PRQN XVLQJ D VWUDQJH KRH WR JURZ PRYLQJRSSRQHQWVEHIRUHNLOOLQJWKHPZLWKLWVELWH
ZKDWDSSHDUWREHPXVKURRPV$VWKHKRHLVGUDZQWKURXJKWKH (DFKFUHDWXUHZLOOPDNHLWVHLJKWWHQWDFOHDWWDFNVRQ
HDUWKPXVKURRPVDSSHDUDQGJURZULJKWEHIRUH\RXUYHU\H\HV RQHRSSRQHQWXQWLOWKDWRSSRQHQWLVSDUDO\]HG,IDOOHLJKW
DWWDFNV IDLOWRKLWWKHQRQLWVQH[WWXUQWKHFUHDWXUHZLOO
$OORZWKH3&VWRLQYHVWLJDWHWKHKRHDVDERYH DWWDFN DQRWKHU RSSRQHQW LI RQH LV ZLWKLQ UHDFK $WWDFNV
7UHDVXUHPDVWHUZRUNVLOYHUHGVOLQJEXOOHWV DUHPDGHDJDLQVWWKHRSSRQHQWVIXOODUPRUFODVVVLQFHWKH
FUHDWXUHVSRLVRQPXVWSHQHWUDWHWKHRSSRQHQWVDUPRURU
VFRUHDKLWRQH[SRVHGIOHVK
(1&2817(50(',*}6 $IWHU\RXGLVSDWFKWKHEHDVWVWKHROGGZDUIUHYLYHV+HWHOOV\RX
+,// KLV QDPH LV 0HGRU DQG KH LV WKH HOGHU IRU WKH GZDUYHV RI
6RXWKXQGHU 0HGLJV +LOO $IWHU WKDQNLQJ \RX IRU VDYLQJ KLV
JUDQGGDXJKWHUV DQG WKHLU FKLOGUHQ KH DVNV \RX ZK\ \RX DUH
)ROORZLQJWKHSDWKDORQJWKHEURRN\RXUHDFKWKHEDVHRIDVPDOO KHUH
PRXQWDLQ7KHEURRNIORZVRXWRIDODUJHFDUYHGVWRQHRSHQLQJ
LQ WKH VLGH RIWKHPRXQWDLQ$WODVW{0HGLJV+LOO<RXHQWHU /HWWKHSDUW\WHOOWKHLUVWRU\0HGRUZLOORQO\LQWHUUXSWLI
WKHJUDQGWXQQHODQGZDONDORQJVLGHWKHIORZLQJZDWHU6RRQLW WKH SDUW\ PHQWLRQV WKH VWUDQJH KRH RU LQVLVWV RQ JHWWLQJ
LV WRRGDUNWRFRQWLQXHZLWKRXWOLJKWXQOHVV\RXFDQVHHLQWKH WKH%DUULHU%UHZ
GDUNRIFRXUVH 0HGRU KDV WKH IROORZLQJVWRU\WRWHOO<RXZLOOQHHG
WR SDUDSKUDVH WKLV WH[W GHSHQGLQJ RQ ZKDW WKH SDUW\ KDV
/HW WKH SDUW\ JHW RXW WKHLU OLJKW VRXUFHV QRWH ZKR KDV WROG0HGRU
ZKDWDQGFRQWLQXH7KHZDONWRWKHFDYHUQFRQVXPHVKDOI
WKHOLJKWRIDWRUFKPLQ |:KHQ P\ IDWKHU 0HGLJ SDVVHG RQ P\ EURWKHU 0HGLE DQG ,
ZHUHOHIWWRJXLGHRXUIDPLO\%XWWKHELWWHUQHVVEHWZHHQXVIURP
$V \RX FRQWLQXH GHHSHU LQWR WKH PRXQWDLQ \RX UHDFK D ODUJH FKLOGKRRG JUHZ DQG ZH VHSDUDWHG RXU IDPLOLHV 0HGLE PRYHG
FDYHUQRXVRSHQLQJUHYHDOLQJPDQ\VWRQHEXLOGLQJV7KHSODFHLV LQWRWKHFDYHUQVWRWKHQRUWKZKLOH,PRYHGP\IDPLO\KHUHWR
GHVHUWHG)URP\RXUOHIW\RXVXGGHQO\KHDUVHYHUDOFULHVIRUKHOS WKH VRXWK :H KDYH OLYHG XQGHU 0HGLJV +LOO IRU PDQ\ \HDUV
VHSDUDWH DQG XQZLOOLQJ WR FRPSURPLVH :H HDFK GXJ RXU RZQ
,IWKH3&VGHFLGHQRWWRLQYHVWLJDWHOHWWKHPH[SORUHWKH PLQHVDQGWUDGHGVHSDUDWHO\ZLWKWKHVPHOWHUVLQ(EEHUQDQW%XW
DUHD DV WKH\ ZLVK +DYLQJ SDUDO\]HG 0HGRU WKH UHFHQWO\ERWKRXUIDPLOLHVFDPHLQWRFRQIOLFWRYHUDULFKYHLQRI
PRQVWHUV ZLOO LPPRELOL]H DQG IHDVW RQ WKH UHPDLQLQJ RUH:HZHUHPLQLQJWKLVYHLQZKHQZHEURNHWKURXJKLQWRD
GZDUYHV 0HGRU ZLOO UHYLYH EHIRUH WKH FUHDWXUHV JHW WR WXQQHOP\EURWKHUVVRQVKDGGXJ7HPSHUVIODUHGDQGILJKWLQJ
KLPDQGGULYHWKHPRII/HWKLPPHHWWKH3&VDIWHUWKLV EURNHRXW6RIDU,KDYHEHHQDEOHWRWHQGWKHZRXQGVLQIOLFWHGRQ
+H ZLOO EH LQ D PXFK GLIIHUHQW PRRG +H LV DOVR DZDUH P\VRQVDQGJUDQGVRQVDQG,PVXUH0HGLEKDVGRQHWKHVDPH
WKDWWKH3&VKHDUGWKHFULHVIRUKHOSVLQFHKHKHDUGWKHP IRUKLVVRQV%XW,DPFRQFHUQHGWKDWWKHYLROHQFHZLOOJREH\RQG
LQWKHRXWHUFKDPEHUZKLOHKHZDVSDUDO\]HG ZKDWZHFDQPHQG$KLIRQO\0HGLEKDGQRWORVWIDWKHUVVWDII
E\WKHVWUHDPVRPDQ\\HDUVDJR}
%DUULHU%UHZ 3DJH
,I WKH 3&V PDGH '& JLYH WKH SDUW\ D URXQG RI
,IWKH3&VKDYHDVNHGDERXWWKH%DUULHU%UHZ SDUWLDODFWLRQV,IWKH3&VWDNHFRYHULQWKHZRRGVOHWWKH
UDLGLQJ SDUW\ UDFH E\ ZLWKRXW QRWLFLQJ WKHP ,I WKH 3&V
|,PVRUU\%HFDXVHRIWKHILJKWLQJWKHEUHZLVQRWUHDG\\HW,I, WDNH DQ\ DFWLRQVWRGUDZDWWHQWLRQWRWKHPVHOYHVUROOIRU
FRXOGRQO\VXPPRQDIHZRIP\VRQVDZD\IURPWKHPLQHVEXW, LQLWLDWLYH
GRXEWWKH\ZRXOGOHDYHWKHILJKWLQJ/HWPHVSHDNZLWK0HGLE
3HUKDSVWKHUHLVVWLOODFKDQFHDWSHDFH,ZLOOQHHGDIHZPLQXWHV $3/(/
WRFRQWDFWKLP}
0HGRUEHJLQVWRJHVWXUHDQGFKDQW *REOLQVKSHDFKVHH0RQVWHU0DQXDOSDJH
3&V PDNLQJ D 6SHOOFUDIW FKHFN '& FDQ GHWHUPLQH :RUJVKSHDFKVHH0RQVWHU0DQXDOSDJH
WKDW0HGRULVFDVWLQJVHQGLQJ
$3/(/
$IWHUZKDWVHHPVDQHWHUQLW\0HGRUUHWXUQVIURPKLVWUDQFHDQG
VSHDNV|0HGLEDQG,ZLOOFDOODWUXFH:HZLOOSXWRXUHQHUJLHV *REOLQVKSHDFKVHH0RQVWHU0DQXDOSDJH
LQWR ILQGLQJ WKH 6WDII RI 0HGLJ :H KDYH DOVR DJUHHG WR GHFLGH
ZKRZLOOOHDGRXUIDPLO\E\ZKLFKRIXVUHFRYHUVWKHVWDII} :RUJVKSHDFKVHH0RQVWHU0DQXDOSDJH
,I WKH 3&V DVN DERXW WKH VWDII SURYLGH WKHP ZLWK D $3/(/
VXPPDU\ RI WKHLQIRUPDWLRQDERXWWKHVWDIILQ$SSHQGL[
%,IWKH3&VPHQWLRQWKHKRHDWWKHPRQDVWHU\ *REOLQVKSHDFKVHH0RQVWHU0DQXDOSDJH
|3OHDVHEULQJPHWKLVKRH\RXVSHDNRI,ZLOOKDYHVRPHRIP\ :RUJVKSHDFKVHH0RQVWHU0DQXDOSDJH
VRQV SUHSDUH WKH EUHZ \RX KDYH FRPH IRU ,I WKLV KRH LV P\
IDWKHUV VWDII DQG \RX FDQ UHWXUQ LW WR PH (OKDGLE ZLOO JHW KLV 7DFWLFV ,I WKH 3&V GUDZ DWWHQWLRQ WR WKHPVHOYHV WKH
%DUULHU%UHZ} PRXQWHGJREOLQVZLOOFKDUJHLQWREDWWOHZLWKWKHLUZRUJV
ZKLOHWKHRWKHUJREOLQVWKURZMDYHOLQV:KHQWKHJREOLQV
0HGRUZLOOQRWVHQGDQ\GZDUYHVRXWZLWKWKHSDUW\$OVR UXQRXWRIMDYHOLQVWKH\ZLOOHQJDJHLQPHOHH,IWKH3&V
KH ZLOO QRW FDVW DQ\ VSHOOV IRU WKH SDUW\ DW WKLV WLPH z KDYHQRWYLVLWHGWKHPRQDVWHU\\HWRQHRIWKHJREOLQVZLOO
XQOHVV WKH 3& ZDV LQMXUHG LQ ILJKWLQJ WKH FDUULRQ PHQWLRQGHVWUR\LQJWKHPRQDVWHU\GXULQJWKHEDWWOH
FUDZOHUV $W PRVW KH ZLOO SURYLGH RQH RU WZR FXUH OLJKW
ZRXQGV VSHOOV 0HGRU ZLOO H[SODLQ WKLV ODFN RI KHOS E\ 7UHDVXUHJSLQDVVRUWHGFRLQV
WHOOLQJWKHSDUW\KHPXVWWHQGWRKLVLQMXUHGVRQVILUVW
,I WKH SDUW\ KDV QRW HQFRXQWHUHG WKH PRQNV WKH\ 2QFHWKH3&VUHWXUQRUYLVLWWKHPRQDVWHU\
ZRQW NQRZ ZKHUH WR ILQG 0HGLJV 6WDII <RX FDQ JXLGH
WKHPWKHUHE\KDYLQJWKHJREOLQVLQ(QFRXQWHU)LYHEUDJ <RXUHDFKWKHWRSRIWKHKLOORQO\WRILQGWKHEXUQWUHPDLQVRID
DERXWGHVWUR\LQJWKHPRQDVWHU\ ZRRGHQFRPSRXQGDQGJDUGHQV<RXVHHVHYHUDOPRQNVSLFNLQJ
,WVKRXOGVWLOOEHPRUQLQJEXWOHWWKHSDUW\VSHQGWKH WKURXJKWKHDVKHVILQGLQJQRWKLQJ2WKHUPRQNVDUHWHQGLQJWR
QLJKWDW6RXWKXQGHU0HGLJV+LOOLIWKH\ZLVKzSURYLGHG IDOOHQFRPUDGHV$IHZDUHGHDGVRPHXQFRQVFLRXVDQGPRVWDUH
WKH\IRXJKWWKHFDUULRQFUDZOHUV2WKHUZLVH0HGRUZLOO LQMXUHG
DVNWKHPWROHDYHQRZ
7KHUHDUHWKUHHGHDG0RQNVWZRVWDEOHEXWXQFRQVFLRXV
0HGRU 0HGLJNLQ PDOH PRXQWDLQ GZDUI &OU RI 0RQNV DQG RI WKH UHPDLQLQJ ILIWHHQ PRQNV RQO\ WKUHH
0RUDGLQ KDYHPRUHWKDQKSOHIW
<RXVXUYH\WKHGHVWUXFWLRQDQGVSRWWKHPRQN:DQGHULQJ0LVW
FDULQJIRURQHRIWKHXQFRQVFLRXVPRQNV+HLVFDUU\LQJDQRGG
(1&2817(55$,',1* ORRNLQJ JDUGHQ KRH6SHDNLQJWRKLP\RXOHDUQWKDWWKH\ZHUH
DWWDFNHGE\DODUJHEDQGRIJREOLQVDQGZRUJV<RXQRWHVHYHUDO
3$57< GHDGJREOLQVDQGWKHFDUFDVVRIDZRUJQHDUE\7KH\KDYHEHHQ
7KH3&VDUHWUDYHOLQJDORQJDIRRWZLGHURDGZLWKWUHHV VWULSSHGRIDQ\WKLQJRIYDOXH7KHPRQNVDUHGHVSHUDWH:LQWHU
RQERWKVLGHVDWDSSUR[LPDWHO\IRRWLQWHUYDOV7KH3&V LVFRPLQJDQGWKHLUVKHOWHUDQGDOOWKHLUIRRGKDVEHHQGHVWUR\HG
VKRXOGPDNH6SRWFKHFNV,IWKH\PDNH'&WKH\VHHD
SDUW\ RI JREOLQV DQG ZRUJV DSSURDFKLQJ 7KH\ DUH ,IWKH3&VVXJJHVWVHHNLQJKHOSIURPWKHQHDUE\GZDUYHV
IHHWDZD\DQGKDYHQRWVHHQWKH3&V\HW,IQRRQHPDNHV WKHPRQNVTXLFNO\DJUHH
'& EXW VRPHRQH PDNHV '& WKH SDUW\ RI JREOLQV
DQG ZRUJV LV RQO\ IHHW DZD\ EXW WKH\ VWLOO KDYH QRW
VHHQWKH3&V2WKHUZLVHWKHSDUW\RIJREOLQVDQGZRUJV
LV RQO\ IHHW DZD\ DQG ERWK VLGHV VHH HDFK RWKHU (1&2817(55(81,21
VLPXOWDQHRXVO\ )HHO IUHH WR UROHSOD\ WKLV HQFRXQWHU EXW LI WLPH LV VKRUW
\RXFDQMXVWUHDGDORXGWKHWH[WEHORZ
%DUULHU%UHZ 3DJH
5HWXUQLQJWRWKHGZDUYHQVHWWOHPHQW\RXWUDYHOLQWKHJURZLQJ $3/(/
VKDGRZRI0HGLJV+LOODVWKHVXQGURSVEHKLQGWKHPRXQWDLQ
*UHHWLQJ0HGRU\RXVHHDQLPPHGLDWHUHDFWLRQDVKHQRWLFHVWKH 'LUH:ROYHULQHKSVHH0RQVWHU0DQXDOSDJH
PRQNVKRH$WHDUFRPHVWRKLVH\HDVKHUHFRJQL]HVKLVIDWKHUV
VWDIIWKDWZDVORVWVRPDQ\\HDUVDJR7KHPRQNVWHOOWKHLUVWRU\ $3/(/
RI ILQGLQJ WKH VWDII DQG H[SODLQ WKHLU FXUUHQW SOLJKW :LWK WKH
UHWXUQRIWKHVWDIIWKHGZDUYHVDJUHHWRKHOSDQGRIIHUWKHPRQNV 'LUH/LRQKSVHH0RQVWHU0DQXDOSDJH
IRRGDQGVSDFHLQWKHDEDQGRQFHQWUDOFRPSOH[XQWLODQHZVWRQH
PRQDVWHU\FDQEHEXLOWIRUWKHPDWRS0HGLJV+LOO ,I WKH 3&V GHFLGH WR IOHH WKH\ FDQ EUHDN RII FRPEDW
ZLWKRXWIXUWKHULQMXU\EXWWKHEHDVWZLOOGHYRXUWKHPXOH
,I WKH 3&V DVN IRU KHDOLQJ DQG DUH QRW DEOH WR KHOS DQGGHVWUR\WKHZDJRQDQGEHHU
WKHPVHOYHV LH QR SRWLRQV VFUROOV VSHOOV HWF WKHQ
0HGRU ZLOO SURYLGH KHDOLQJ WR WKRVH KH GHHPV ZRUWK\
1RWHWKHPDMRULW\RIWKHGZDUYHQUHVRXUFHVVKRXOGJRWR
KHOSLQJWKHLQMXUHGPRQNV
&21&/86,21
7KH 3&V ZLOO SUREDEO\ ZDQW WR UHVW WKH QLJKW EHIRUH 7+(3,&.$1'6+29(/
OHDYLQJIRU(EEHUQDQWDQGWKH\DUHZHOFRPHWRVWD\7KH ,I WKH 3&V DUH XQDEOH WR GHOLYHU WKH ZDJRQ RI %DUULHU
GZDUYHVZLOOQRWEHUHDG\WREULQJWKHUHPDLQLQJZDJRQV %UHZWKH\ZLOOQRWUHFHLYHDKHURVZHOFRPHQRUEHDEOH
RIEUHZWR(EEHUQDQWXQWLODIWHUWKH3&VVHWRXWZLWKWKH WRSDUWLFLSDWHLQWKHMXGJLQJEXW(OKDGLEZLOOWDNHSLW\RQ
ILUVWZDJRQ WKHPDQGOHWWKHPWHQGWKHLUZRXQGVZKLOHJXHVWVDWKLV
HVWDEOLVKPHQW
(YHU PLQGIXO RI WKH ORRPLQJ IHVWLYDO WKH GZDUYHV DVN \RX WR ,IIRUVRPHUHDVRQWKH3&VGRQRWEULQJWKH%DUULHU
EULQJDZDJRQDOUHDG\ORDGHGZLWK%DUULHU%UHZWRWKH3LFNDQG %UHZ WR WKH 3LFN DQG 6KRYHO EXW NHHS LW RU VHOO LW %OXII
6KRYHO 7KH\ ZLOO IROORZ EHKLQG RQFH WKH\ KDYH ORDGHG WKH FKHFN [ JS WR GHWHUPLQH KRZ PXFK WKH\ FDQ VHOO LW
UHPDLQLQJZDJRQV IRU WKH\ ZLOO EH URXQGHG XS DQG WKURZQ LQ MDLO IRU
ZHHNV78DQGILQHGIRUWKHUHSODFHPHQWYDOXHRIWKH
,I WKH 3&V LQVLVW RQ VWD\LQJ WR KHOS WKHGZDUYHVORDGWKH %UHZJS
UHPDLQLQJ ZDJRQV KDYH 0HGRU H[SODLQ WKDW WKH ,I WKH 3&V ZHUH VXFFHVVIXO LQ UHWXUQLQJ WKH 6WDII WR
UHPDLQLQJEHHUPXVWVWLOOEHSURFHVVHGVHFUHWO\DQGWKDW 0HGRU WKH\ ZLOO JHW WKH SRWLRQV DQG WKH LQIOXHQFH
WKHUHLVMXVWHQRXJKWLPHWREULQJ(OKDGLEHQRXJK%DUULHU SRLQWVIURPWKHGZDUYHVEXWQRWWKHZDUKDPPHU
%UHZIRUWKHILUVWQLJKWRI%UHZIHVW ,I WKH 3&V DUH VXFFHVVIXO LQ GHOLYHULQJ WKH %DUULHU
%UHZ
(1&2817(57+(52$' $V\RXSURGWKHPXOHXSWKHVWUHHWWRZDUGWKH3LFNDQG6KRYHO
DQRYHUMR\HG(OKDGLEUXQVRXWWRJUHHW\RX|$KIULHQGV,NQHZ
+20( \RXZRXOGEHVXFFHVVIXO$UHWKHGZDUYHVRN"}(OKDGLEFRXQWVWKH
7KH3&VDUHWUDYHOLQJDORQJDIRRWZLGHURDGZLWKWUHHV EDUUHOVLQWKHZDJRQDQGDVNV|$UHWKHGZDUYHVFRPLQJ":LOO
RQERWKVLGHVDWDSSUR[LPDWHO\IRRWLQWHUYDOV WKH\EULQJPRUH%DUULHU%UHZIRUWKHIHVWLYDOZHHN"}
,IGD\WLPH
/HWWKH3&VWHOOWKHLUVWRU\LIWKH\ZLVK
6HWWLQJ RII IRU (EEHUQDQW \RX HPHUJH IURP XQGHU 0HGLJV +LOO
LQWRWKHEULJKWVXQOLJKW |+DK*RRGIRU\RX%ULQJWKHZDJRQDURXQGEDFN,OOKDYHP\
FRRN DQG VWDEOHER\XQORDGLW:HOFRPHEDFNDQGMXVWLQWLPH
,IQLJKWWLPH IRU%UHZIHVWWRR}
7KHWDYHUQLVIXOODQGSHRSOHVLWDWHYHU\WDEOHEXW(OKDGLE
6HWWLQJ RII IRU (EEHUQDQW \RX HPHUJH IURP XQGHU 0HGLJV +LOO FOHDUVDZD\KLVEHVWWDEOHIRU\RXDQGLQVLVWVRQSD\LQJIRU\RXU
LQWRWKHZHOOOLWQLJKWVN\ VWD\ZKLOH\RXDUHKHUHIRU%UHZIHVW+HDOVRUHTXHVWV\RXGRKLP
WKHKRQRURIMXGJLQJWKH%LVVHO6WHZFRQWHVW
,QHLWKHUFDVH
+HKDQGVRXWDEURQ]HMXGJHVPHGDOOLRQWRHDFK3&ZKR
<RXWUDYHODORQJWKHURDGWU\LQJWRSXVKWKHPXOHDORQJWKRXJK DFFHSWV +DQG RXW RQH %URQ]H 0HGDOOLRQ FHUW WR WKHVH
LWVHHPVWRKDYHRQO\RQHVSHHGwVORZ$V\RXUHDFKWKHVLWHRI SOD\HUVQRZ
\RXUILUVWHQFRXQWHUZLWKJREOLQV\RXVHHDQDQLPDOUXPPDJLQJ
WKURXJK WKH UHPDLQV RI WKH JREOLQV ,W VQLIIV WKH DLU VHHPV WR 7KH QH[W GD\ WKH GZDUYHV DUULYH 0HGRU ILQGV \RX DQG WKDQNV
QRWLFH\RXzRUDWOHDVW\RXUPXOHzDQGFKDUJHV HDFKRI\RXLQWXUQSURPLVLQJWRUHWXUQWKHIDYRU\RXKDYHGRQH
IRU KLV IDPLO\ +H SUHVHQWV \RX ZLWK SRWLRQV DQG WKH
ZDUKDPPHU KH FDUULHV +H SURFODLPV |, KDYH FUDIWHG WKLV
$3/(/ ZDUKDPPHU LQ KRQRU RI P\ IDWKHU 0HGLJ ,W ZLOO VHUYH
'LUH:ROIKSVHH0RQVWHU0DQXDOSDJH
%DUULHU%UHZ 3DJH
GZDUYHQNLQGZHOO7DNHLWDQGXVHLW6SUHDG0RUDGLQVMXVWLFH IURP D VFHQDULR IRU DQ\ UHDVRQ XQOHVV WKH WUHDVXUH
IDUDQGZLGH} VXPPDU\OLVWVWKHEHLQJVSHFLILFDOO\,WLVRND\IRUWKH
SOD\HU FKDUDFWHUV WR IRUP UHODWLRQVKLSV ZLWK 13&V
7KH(QG EXW WKHVH ZLOO QRW EH FHUWHG DQG FDQQRW EULQJ
PDWHULDOEHQHILWWRWKHFKDUDFWHU&RQWDFWVVRXUFHVRI
H[WUDLQIRUPDWLRQPXVWEHVSHFLILFDOO\FHUWHG
7KHIW LV DJDLQVW WKH ODZ EXW PD\ EH SUDFWLFHG E\
(;3(5,(1&(32,17 VRPHSOD\HUFKDUDFWHUV,WHPVZKLFKDUHZRUWKPRUH
WKDQ JS WKDW DUH RI SHUVRQDO VLJQLILFDQFH WR WKH
6800$5< RZQHU LQFOXGLQJ IDPLO\ KHLUORRPV DQG DOO PDJLFDO
7RDZDUGH[SHULHQFHIRUWKLVDGYHQWXUHDGGXSWKHYDOXHV LWHPV ZLOO EH GLVFRYHUHG LQ WKH SRVVHVVLRQ RI WKH
IRU WKH REMHFWLYHV DFFRPSOLVKHG 7KHQ DVVLJQ WKH FKDUDFWHU E\ RQH PHDQV RU DQRWKHU 7KH FKDUDFWHU
GLVFUHWLRQDU\ UROHSOD\LQJ H[SHULHQFH DZDUG 7KH PXVW UHWXUQ WKH LWHP DQG SD\ D ILQH HTXDO WR WKUHH
UROHSOD\LQJ DZDUG VKRXOG EH JLYHQ IRU FRQVLVWHQW WLPHV WKH YDOXH RI WKH LWHP VWROHQ ,Q DGGLWLRQ WKH
FKDUDFWHU SRUWUD\DO DQG FRQWULEXWLRQ WR WKH IXQ RI WKH 3& FDXJKW UHFHLYHV FDPSDLJQGHFLGHG SHQDOWLHV IRU
JDPH <RX FDQ DZDUG GLIIHUHQW UROHSOD\LQJ DPRXQWV WR EHLQJNQRZQDVDWKLHI)RURWKHUVWROHQLWHPVZKLFK
GLIIHUHQWFKDUDFWHUV PHHWWKHFULWHULDLQDERYHXVH\RXUMXGJPHQWDQG
$ZDUGWKHWRWDOYDOXHREMHFWLYHVSOXVUROHSOD\LQJWR WKH FLUFXPVWDQFHV ZLWKLQ WKH JDPH WR GHWHUPLQH
HDFKFKDUDFWHU ZKHWKHUD3&WKLHIJHWVDZD\ZLWKWKHWKHIWRUQRW
(QFRXQWHU7ZR $Q\ LWHP UHWDLQHG DFFRUGLQJ WR WKHVH UXOHV ZKLFK GRHV
'HIHDWLQJJREOLQDPEXVK [S QRW KDYH D FHUWLILFDWH ZLOO QRW HYHU KDYH D FHUWLILFDWH
$YRLGLQJRUGLVDUPLQJSLWWUDS [S LVVXHGIRULW
7KH FDPSDLJQ VWDII UHVHUYHV WKH ULJKW WR WDNH DZD\
(QFRXQWHU)RXU DQ\ LWHP RU JROG DFTXLUHG IRU WKLQJV WKDW LW ODWHU ILQGV
'HIHDWLQJFDUULRQFUDZOHUV [S XQUHDVRQDEOHEXWZKLFKZHUHDOORZHGDWWKHWLPH
(QFRXQWHU)LYH (QFRXQWHU7ZR
'HIHDWLQJSDUW\RIJREOLQVDQGZRUJV [S 7UHDVXUH
N JSLQDVVRUWHGFRLQV
(QFRXQWHU6L[
5HWXUQLQJVWDIIWR0HGLJFODQ [S
(QFRXQWHU7KUHH
(QFRXQWHU6HYHQ N 0DVWHUZRUN6LOYHUHG6OLQJ%XOOHWV&RVWJS,WHP
'HIHDWLQJGLUHDQLPDO [S 6L]H 6 8VHV 7UDGDEOH <HV 5DULW\ &RPPRQ
:HLJKWOEPDVWHUZRUNVLOYHUHGVOLQJEXOOHWV
&RQFOXVLRQ
'HOLYHULQJ%UHZWR(OKDGLE [S (QFRXQWHU)LYH
N JSLQDVVRUWHGFRLQV
7RWDOH[SHULHQFHIRUREMHFWLYHV [S
'LVFUHWLRQDU\UROHSOD\LQJDZDUG [S
&RQFOXVLRQ
7RWDOSRVVLEOHH[SHULHQFH [S
N :DUKDPPHU RI PHGLJ &RVW JS ,WHP 6L]H 0
8VHVXQOLPLWHG7UDGDEOH<HV5DULW\5DUH:HLJKW
OE 7KLV ZDUKDPPHU LV DWWXQHGWRLWVZLHOGHUDQG
75($685(6800$5< LWV SRZHU LV SURSRUWLRQDWH WR WKH ZLHOGHUV SRZHU ,I
\RXZLHOGWKHZHDSRQDQG\RXUEDVHDWWDFNERQXVLV
RU WKH ZDUKDPPHU RI 0HGLJ DFWV DV D
3OD\HU FKDUDFWHUV PD\ NHHS LWHPV IURP WKH VFHQDULR WKDW
PDVWHUZRUN ZDUKDPPHU 8QOHVV \RX DUH D GZDUI
DUH OLVWHG RQ WKH WUHDVXUH OLVW EHORZ RU ZKLFK PHHW WKH
WKLVLVDVSRZHUIXODVWKHZHDSRQZLOOEHFRPH,I\RX
IROORZLQJFRQGLWLRQV
DUHDGZDUIDQG\RXUEDVHDWWDFNERQXVLVRU
WKHKDPPHULVDZDKDPPHULQ\RXUKDQGV,I\RX
7KHLWHPPXVWEHQRQPDJLFDODQGVSHFLILFDOO\OLVWHG
DUH D GZDUI DQG \RXU EDVH DWWDFN ERQXV LV RU
LQWKHWH[WRIWKHDGYHQWXUHHJDUPRURQIRHV,ILW
KLJKHU WKLV KDPPHU IXQFWLRQV DV D WKURZLQJ
LVQRWOLVWHGLQWKHWH[WWKHFKDUDFWHUVFDQQRWNHHSLW
ZDUKDPPHU
,WHPV RI WKLV QDWXUH FDQ EH VROG IRU RI ERRN
YDOXHRUUHFRUGHGRQDORJVKHHW N 7ZR SRWLRQV RI FXUH OLJKW ZRXQGV &RVW JS ,WHP
$QLPDOV IROORZHUV PRQVWHUV KHQFKPHQ DQG VR 6L]H R] 8VHV 2QFH 7UDGDEOH <HV 5DULW\
IRUWK DQ\ OLYLQJ EHLQJ EDVLFDOO\ PD\ QRW EH NHSW &RPPRQ:HLJKW1RQH$SRWLRQRIFXUHOLJKWZRXQGV
DWFDVWHUOHYHO
%DUULHU%UHZ 3DJH
$QGRQHRIHDFKRIWKHVHLWHPVIRUHDFK3&
N %URQ]H 0HGDOOLRQ &RVW 1RQH ,WHP 6L]H 6 8VHV
XQOLPLWHG7UDGDEOH1R5DULW\&RPPRQ:HLJKW
OE$EURQ]HPHGDOOLRQJLYHQDVDPDUNRIKRQRUWR
MXGJHVRIWKH%LVVHO6WHZFRQWHVWLQ(EEHUQDQWLQWKH
0DUFK RI %LVVHO ,W PD\ EH RI XVH WR WKH RZQHU LQ
IXWXUHWULSVWRWKHWRZQRI(EEHUQDQW
N ,QIOXHQFH3RLQW&RVW1RQH,WHP6L]H1RQH8VHV
2QFH 7UDGDEOH 1R 5DULW\ &RPPRQ :HLJKW
1RQH7KLVLVDQLQIOXHQFHSRLQWZLWKWKHGZDUYHVRI
WKH%DUULHU3HDNVLQWKH0DUFKRI%LVVHOZKLFKFDQEH
SRROHGRUXVHGLQGLYLGXDOO\FRQWDFWWKH%LVVHO7ULDG
IRU GHWDLOV
%DUULHU%UHZ 3DJH
'0$,'x6&(1$5,20$3
(EEHUQDQW
)HUU\
%DUULHU3HDNV
8QGHUPRXQWDLQ
EURRN DQG 5RDG WR
0HGLJV+LOO
6WRQH
0HGLJV+LOO %ULGJH
0RQDVWHU\
5HDOVWUHDP
%DUULHU%UHZ 3DJH
$33(1',;$x7+(3,&.$1'6+29(/
2ZQHU (OKDGLE 5DPLQ] PDOH KXPDQ % \UV ROG )RUPHU PLQHU DQG VPHOWHU +DWHG WKH ZRUN 6DYHGWKHOLIHRID
PHUFKDQW YLVLWLQJ WKH IRUJH 0HUFKDQW DFWLQJ DV D VLOHQW LQYHVWRU VHW (OKDGLE XS ZLWK WKH WDYHUQ (OKDGLE KDV SURYHG
YHU\UHVRXUFHIXODQGWKHLQQKDVEHFRPHYHU\SURILWDEOH
/RFDWLRQRIWKH,QQ6HWRQWKHRXWVNLUWVRIWKH0HUFKDQWV4XDUWHURI(EEHUQDQWEXWFORVHUWRWKHFHQWHURIWRZQWKDQ
WKHHGJH1HDUWKH0LQHUV4XDUWHU3DWURQVDUHSULPDULO\RUHPHUFKDQWVDQGORFDORUYLVLWLQJGZDUYHV6RPHPLQHUVDQG
VPHOWHUVFRPHLQEXWWKHSODFHLVDELWULFKIRUWKHLUWDVWHVWKRXJK(OKDGLEKDVQ
WIRUJRWWHQWKRVHKHXVHGWRZRUNZLWK
DQGGLVFRXQWVWKHLUGULQNVDQGIRRGZKHQWKH\GRYLVLW
&ODLP WR )DPH 6HUYHV %DUULHU %UHZ VSHFLDO UHFLSH RI WKH 0HGLJ +LOO GZDUYHQ FODQ DQG LV KRVW RI DQQXDO %LVVHO 6WHZ
FRQWHVWVWDUWHGE\(OKDGLEVHYHUDO\HDUVDJRWREULQJLQPRUHEXVLQHVV&RQWHVWLVKHOGDWWKHEHJLQQLQJRI%UHZIHVWZLWK
ORFDOFHOHEULWLHVZKRVHUYHDVWKHMXGJHV
/D\RXWRI,QQ7KUHHVWRULHV7DYHUQNLWFKHQSULYDWHPHHWLQJURRPV(OKDGLE
VTXDUWHUVDQGVHUYDQWV
TXDUWHUVRQILUVW
IORRU 6WDEOHV DQG VPDOO IHQFHG \DUG RXWEDFN6HFRQGIORRUKDVURRPVDORQJH[WHULRUZDOOZLWKLQQHUEDOFRQ\ORRNLQJ
GRZQRQWDYHUQ2QWKHWKLUGIORRUDUHVXLWHVIRUKLJKDQGOX[XU\SD\LQJJXHVWV
6WDII
$VPHUDK(OKDGLE
VQHZ\RXQJEULGH\HDUROGIHPDOHKXPDQ%%UGDOVRWHQGVEDUZKHQ(OKDGLELVRXW
<DQLII+HDGFKHI0DOHKXPDQ%\HDUVROG
2SDO DQG -DGH (OKDGLE
V GDXJKWHUV IURP D SUHYLRXV PDUULDJH 0RWKHU ZDV 2HULGLDQ EXW GLHG GXULQJ ZDU ZLWK .HW
6HUYLQJJLUOVDQG
0ROO\*ROGKDLU*RRGYHLQ0XVKZUHQ:DUWVELWHU/XYHQ+HDGPDLGIHPDOHJQRPH
6XOO\*ROGKDLU/XFNOHVV&DWVQHH]HU/XYHQ0ROO\
VVRQZKRWHQGVWKH\DUGDQGVWDEOHV$OOHUJLFWRFDWVXVXDOO\VQHH]LQJ
ZLWKUXQQ\QRVHVLQFH(OKDGLERZQVVHYHUDOFDWV
%DUULHU%UHZ 3DJH
$33(1',;%x0(',*}6+,//
7+(0(',*&/$1
$VPDOOGZDUYHQFRPPXQLW\XQGHU0HGLJV+LOOORFDWHGMXVWVRXWKDQGZHVWRIWKHWRZQRI(EEHUQDQWLQWKH0DUFKRI
%LVVHO
,I\RXZDONWKHURDGRXWRI(EEHUQDQWOHDGLQJVRXWKDORQJWKH5HDOVWUHDP\RXZLOOHYHQWXDOO\UHDFKDVWRQHEULGJH
DOORZLQJDFFHVVWRWKHZHVWEDQNRIWKHULYHU2QWKHZHVWHUQEDQNIROORZLQJDQDUURZFDUWSDWKOHDGLQJXSLQWRWKHIRRW
KLOOVRIWKH%DUULHU3HDNV\RXFRPHDFURVVDODUJHURXQGHGPRXQWDLQNQRZQWRWKHORFDOIRONDV0HGLJV+LOO
0HGLJZDVDQHOGHUGZDUIRIDFODQWKDWOLYHGGHHSLQWKH%DUULHU3HDNV+HZDVDFOHULFLQVHUYLFHWR0RUDGLQDVLVKLV
VRQ0HGRUZKRQRZOHDGVWKH&ODQ)RUVRPHUHDVRQ0HGLJVIDPLO\WRRNOHDYHRIWKHLUFODQDQGVHWRXWWRIRXQGDQHZ
VHWWOHPHQW PXFK FORVHU WR WKH KXPDQ KDELWDWLRQV 7KHLU GZDUYHQ FRPPXQLW\ QRZ WUDGHV RUH ZLWK WKH VPHOWHUV LQ
(EEHUQDQWIRUIRRGJRRGVDQGFUDIWJRRGVWKDWWKHGZDUYHVHLWKHUKDYHQRWWKHPDWHULDOVRUWKHLQWHUHVWWRPDNH
0HGLJ SDVVHG RQ PDQ\ \HDUV DJR DQG VLQFH WKHQ 0HGRU DQG KLV EURWKHU 0HGLE KDYH VSOLW WKH FODQ LQWR WZR
VHWWOHPHQWVXQGHU0HGLJV+LOO7KHUHDVRQIRUWKHVSOLWLVQRWSXEOLFO\NQRZQzQRWDVXUSULVHVLQFHGZDUYHVWHQGWREHD
SULYDWH ORW ,Q IDFW DERXW DOO WKH SHRSOH RI (EEHUQDQW NQRZRIWKHWZRGZDUYHQVHWWOHPHQWVLVWKDWWKH\PDNHWKHEHVW
EUHZ LQ DOO RI %LVVHO :HOO DW OHDVW WKH SHRSOH RI (EEHUQDQW WKLQN VR $V GR PDQ\ RWKHUV ZKR WUDYHO WR (EEHUQDQW IRU
%UHZIHVWMXVWWRJHWDWDVWHRIWKH'ZDUYHQ%DUULHU%UHZ
0HGRU0HGLJNLQPDOHPRXQWDLQGZDUI&OURI0RUDGLQ
0HGLE0HGLJNLQPDOHPRXQWDLQGZDUI&OURI0RUDGLQ)WU
81,48(0$*,&,7(062)7+(0(',*&/$1
0HGLJ
V6WDII$PDJLFDOVWDIIRIWKHGZDUYHQFODQEURXJKWWRWKLVDUHDE\0HGLJDGZDUYHQFOHULFRI0RUDGLQ7KLVLWHPLV
RIJUHDWSHUVRQDOYDOXHWRERWKWKHPRQNVQHDU0HGLJVKLOODQGWKH0HGLJ+LOOGZDUYHV,ID3&VVWHDOVWKHVWDIIWKH
3&VDUHDXWRPDWLFDOO\FDXJKWDWWKHHQGRIWKHVFHQDULRDQGDUHSXQLVKHGE\LPSULVRQPHQWIRUGD\V78VIRUWKLV
UHDVRQWKHVWDIILVQRWFHUWHGRUYDOXHG7KHGHYLFHPDJLFDOO\JURZVPXVKURRPVSHUGD\WKDWZKHQHDWHQKHDOG
SRLQWVRIGDPDJHRQFHSHUSHUVRQSHUGD\7KHPXVKURRPVORVHWKHLUSRWHQF\RQHKRXUDIWHUEHLQJKDUYHVWHGEXWFDQEH
EUHZHGLQWRDSRWLRQRIFXUHOLJKWZRXQGVDWFDVWHUOHYHOZLWKDVXFFHVVIXODOFKHP\FKHFN'&VRPHWKLQJRIZKLFK
WKHPRQNVDUHQRWDZDUHEXWWKHGZDUYHVDUHDZDUH,IH[DPLQHGFORVHO\WKH3&VZLOOQRWHWKHKRHLVDERXWIWORQJ
ZLWKUXQLFPDUNLQJV'ZDUYHQIRU|IRRGIRUOLIH}DORQJWKHOHQJWK7KHKHDGLVPDGHRIVWRQHDQGLVDWWDFKHGE\DVLON
OLNHILEHUWRWKHVWDII
:DUKDPPHU RI PHGLJ &RVW JS ,WHP 6L]H 0 8VHV XQOLPLWHG 7UDGDEOH <HV 5DULW\ 5DUH :HLJKW OE 7KLV
ZDUKDPPHULVDWWXQHGWRLWVZLHOGHUDQGLWVSRZHULVSURSRUWLRQDWHWRWKHZLHOGHUVSRZHU,I\RXZLHOGWKHZHDSRQDQG
\RXUEDVHDWWDFNERQXVLVRUWKHZDUKDPPHURI0HGLJDFWVDVDPDVWHUZRUNZDUKDPPHU8QOHVV\RXDUHDGZDUI
WKLVLVDVSRZHUIXODVWKHZHDSRQZLOOEHFRPH,I\RXDUHDGZDUIDQG\RXUEDVHDWWDFNERQXVLVRUWKHKDPPHU
LVDZDKDPPHULQ\RXUKDQGV,I\RXDUHDGZDUIDQG\RXUEDVHDWWDFNERQXVLVRUKLJKHUWKLVKDPPHUIXQFWLRQVDVD
WKURZLQJZDUKDPPHU
%DUULHU%UHZ 3DJH
$33(1',;&x7+(*(1(5$/6725(
7KLV VWRUHVHOOVPRVWLWHPVFRPPRQO\IRXQGLQWKH3+% WDOO KHDY\ JUD\LVK VNLQ VORSHG IRUHKHDG SURPLQHQW
1263(&,$/250$67(5:25.,7(06$OOOLJKWRU WHHWK DQG FRDUVH ERG\ KDLU VXIIHU D SRLQW SHQDOW\ WR
PHGLXP DUPRU WDEOH SDJH DQGDOOFRPPRQDQG WKHLU'LSORPDF\UROOV
PDUWLDO ZHDSRQV WDEOH SDJH ZLOO EH DYDLODEOH
6LPLODUO\ DOO LWHPV IURP WKH $GYHQWXULQJ *HDU DQG 6WDUWLQJ DW WKH RZQHU PD\ QHJRWLDWH DV ORZ DV
&ORWKLQJ VXE WDEOHV SDJH DQG DQ\ QRQURJXH 0DNHWKHSOD\HUVZRUNIRULW
LWHPV IURP WKH &ODVV 7RROV DQG 6NLOOV VXE WDEOH DUH
DYDLODEOH 'XH WR WKH UHPRWHQHVV RI WKH WRZQ DQG WKH 'LSORPDF\&KHFN 9DOXH
FXUUHQWVWUHVVFDXVHGE\KHDY\WD[DWLRQJHDULVH[SHQVLYH '& WR
'& WR
7KH6WRUH7KHVWRUHLVEDVLFDOO\DEXLOGLQJRIVWRQHDQG '& DQGXS
ZRRG WKDW FRQWDLQV D ODUJH GLVSOD\ URRP VKRZLQJ WKH
DYDLODEOH ZDUHV DQG VRPH VWRUDJH DUHD LQ WKH EDFN 3&V 7KHJXDUGVDUHDWWHQWLYHDQGOR\DO7KH\ZLOOLPPHGLDWHO\
ZLOO QRW KDYH DFFHVV WR WKH VWRUDJH DUHD DQG ZLOO EH DSSUHKHQG DQ\RQH WKH\ VHH VWHDOLQJ RU LI RUGHUHG VR ,I
ZDWFKHG DV WKH\ JR DERXW WKH PDLQ IORRU ORRNLQJ DW WKH WKH\ IHHO WKH\ FDQW GHDO ZLWK WKH 3&V WKH\ ZLOO FDOO WKH
YDOXDEOHVIRUVDOH FRQVWDEXODU\ IRU KHOS ,Q WKLV FDVH WKH DGYHQWXUH LV DOO
EXWGRQHDVWKH3&VDUHQRZZDQWHGFULPLQDOV
$Q\ 3& FDXJKW VWHDOLQJ ZLOO KDYH WR IDFH WKH DXWKRULWLHV
DQG XQOHVV WKH\ KDYH JUHDW LQIOXHQFH RU FDQ SD\ D EULEH $OOKUHP DQG 5DJRXW *XDUGV PDOH KXPDQ :DU
JS PLQLPXP WKH\ ZLOO EH SXQLVKHG 0DNH VXUH WR 0HGLXP+XPDQRLG+XPDQIWWDOO+'GKS
ZDUQ3&VWKDWWKH\NQRZWKHVHSHRSOHDUHKDUVKRQWKRVH HDFK ,QLW 'H[ 6SHHG IW $& FKDLQ
WKDWFRPPLWFULPHV7KHSHQDOW\IRUWKHIWRILWHPVJS VKLHOG'H[PHOHHGILVWVRUGORQJVZRUG
LQ YDOXH RU OHVV LV HQIRUFHG VHUYLWXGH IRU XS WR D \HDU >FULW[@$//169)RUW5HI:LOO
DQGRUDILQHRIWKUHHWLPHVWKHYDOXHRIWKHLWHPVWROHQ 6WU&RQ'H[,QW:LV&KD
7KHIWRILWHPVRYHUJSLQYDOXHLVSXQLVKDEOHE\DORVV 6NLOOV5LGH-XPS6HDUFK6SRW
RIRQHVKDQGWR\HDUVIRUFHGVHUYLWXGHDQGRUDILQH )HDWV ,PSURYHG ,QLWLDWLYH $OHUWQHVV &RPEDW
HTXDO WR WR RI WKH YDOXH RI WKH FULPLQDOV WRWDO 5HIOH[HV
SURSHUW\MXGJHVGLVFUHWLRQ *HDU &KDLQPDLO VKLHOG ORQJVZRUG GDJJHU KHDY\
FORDN ZLQWHU ERRWV OLJKW FURVVERZ ZLWK EROWV
.KDOLIRU WKH 6WRUH 2ZQHU PDOH KXPDQ ([S
0HUFKDQW 0HGLXP +XPDQRLG+XPDQ IW WDOO +'
GKS,QLW'H[6SHHGIW$&'H[
PHOHH G >FULW [@ GDJJHU $/ /1 69)RUW
5HI:LOO
6WU&RQ'H[,QW:LV&KD
6NLOOV $SSUDLVH 6HQVH 0RWLYH 3URIHVVLRQ
0HUFKDQW6HDUFK6SRW
)HDWV$OHUWQHVV
3RVVHVVLRQV$Q\WKLQJLQWKHVWRUHJSRQVHOIEXW
ZLWKDFFHVVWRRYHUJSIURPEXVLQHVV
7KH 6WRUHRZQHU ZLOO SD\ FORVH DWWHQWLRQ WR SHRSOH LQ KLV
VWRUH +H ZLOO KRYHU RYHU WKHP PDNLQJ VXUH WKH JXDUG
NHHSV DQ\ VWUDJJOHUV LQ YLHZ :KLOH MRYLDO DQG QLFH KH
ZLOO EH DOO EXVLQHVV OLNH DQG DVN WKH 3&V WR OHDYH LI KH
VXVSHFWV FULPH RU IHHOV WKH\ DUH LQVXOWLQJ KLP E\ QRW
WDNLQJWKHKDJJOLQJVHULRXVO\
$OOLWHPVDUHLQLWLDOO\SULFHGDWWKHSULFHOLVWHGLQWKH
3+%7KHDPRXQWRIKDJJOLQJWKHRZQHUZLOOGRGHSHQGV
SDUWO\ RQ 'LSORPDF\ DQG SDUWO\ RQ WKH 3&V UDFH DQG RI
FRXUVHRQWKHUROHSOD\LQJ
3&V WKDW DSSHDU WR EH RI 6XHO RULJLQ EORQG EOXHH\HG
IDLUVNLQQHG DQG ZHDULQJ VROLG FRORU YHVWV DQGRU ZLGH
OHJJHG SDQWV DQG WKRVH WKDW DSSHDU WR EH RI 2UF RULJLQ
%DUULHU%UHZ 3DJH
3OD\HU+DQGRXW7KH&OHDULQJ
%DUULHU%UHZ 3DJH
(1/,67,1*7+(,&21,&
7RUGHN PDOH GZDUI )WU &5 0HGLXPVL]HKXPDQRLGGZDUI+'GKS,QLW6SGIW$&
WRXFKIODWIRRWHG$WNVPHOHHG[GZDUYHQZDUD[HRUUDQJHGG[VKRUWERZ64
'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 $&
WRXFKIODWIRRWHG$WNVPHOHHGTXDUWHUVWDIIRUzPHOHHGTXDUWHUVWDIIDQGzPHOHHG
TXDUWHUVWDIIRUUDQJHGG[VKRUWERZ64(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 $&
WRXFKIODWIRRWHG$WNVPHOHHGVKRUWVZRUGRUUDQJHGGOLJKWFURVVERZRU
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*RRGJRRGVSHOOVFDVWDWFDVWHUOHYHODQG+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