Mctube2 PDF
Mctube2 PDF
Mctube2 PDF
%XLOGWKH5HDO0F7XEH,,
2YHUGULYH'LVWRUWLRQ7XEH6WRPSER[
7KH5HDO0F7XEHLVDVLPSOHVHOIFRQWDLQHGRQHWXEHFLUFXLWLQWHQGHGDVDQ
RYHUGULYHGLVWRUWLRQSUHDPSOLILHU,WPDNHVXVHRIWKHYDFXXPWXEH
VUHODWLYHO\
VRIWFOLSSLQJFKDUDFWHULVWLFVWRSURYLGHDIX]]WRQHRURYHUGULYHVRXQGZLWKD
ZDUPHUTXDOLW\WKDQDIIRUGHGE\PRVWVXFKVROLGVWDWHGHYLFHV$GXDOWULRGHLV
RSHUDWHGQHDUWKHERWWRPRILWVFKDUDFWHULVWLFFXUYHVWRWDNHDGYDQWDJHRIWKH
XQLTXHGLVWRUWLRQRIZKLFKVXFKWXEHVDUHFDSDEOH
7KHSURMHFWLVLQWHQGHGIRUXVHZLWKPXVLFDOLQVWUXPHQWVVXFKDVJXLWDUVDQG
EDVVHVWRWDNHDGYDQWDJHRIWKHYDFXXPWXEH
VGLVWRUWLRQFKDUDFWHULVWLFVDV
VXFKLWLVQRWVXLWDEOHIRUUHSURGXFWLRQDSSOLFDWLRQV,I\RX
UHDIWHUKLJKILGHOLW\
FRQVLGHUP\TXDVLRSDPSSUHDPSGHVLJQLQVWHDG
7KHSURMHFWLVEHVWDVVHPEOHGLQVLGHDFORVHGFDVHVWRPSER[VW\OHIRU
UXJJHGQHVV+RZHYHUWKHUHLVQRUHDVRQZK\\RXFRXOGQ
WDVVHPEOHLWLQWRRWKHU
SDFNDJHVHYHQEUHDGERDUGVW\OH7KLVLVDQLGHDOSURMHFWLI\RXKDYHDWOHDVW
VRPHHOHFWURQLFVH[SHULHQFHEXWZLVKWREUHDNLQWRWKHIDVFLQDWLQJZRUOGRIWKH
WKHUPLRQLFYDFXXPWXEH
+LVWRU\
RIWKH5HDO0F7XEHFLUFXLW
7KLVSURMHFWZDVRULJLQDOO\SXEOLVKHGLQ(OHFWURQLFV1RZ)HEUXDU\EDVHGRQ
DVXEPLVVLRQLQRIDFLUFXLW,SXWWRJHWKHULQ6LQFHWKHQVHYHUDO
LQGLYLGXDOVKDYHPDGHVXJJHVWLRQVIRUH[SDQGLQJWKHWH[WSRUWLRQRIWKHDUWLFOH
VRKHUHLVDQXSGDWHG-DQYHUVLRQRIWKLVFODVVLFDQGXVHIXOGHVLJQ
RI $0
7KH5HDO0F7XEH,,
%DFNLVVXHVRIWKH)HELVVXHRI
(OHFWURQLFV1RZDUHVWLOODYDLODEOHIURP
ZZZJHUQVEDFNFRPVKRXOG\RXZLVKWRORRN
RYHUWKHRULJLQDOGHVLJQ7KHVFKHPDWLFLVDOVR
VKRZQLQ$SSHQGL[,IRUUHIHUHQFHSXUSRVHV
$UHGUDZQYHUVLRQRIWKHVFKHPDWLFXVLQJ
(XURSHDQVW\OHV\PEROVLVDYDLODEOHDVD3')
ILOHIURPZZZVRXQGFRUHFRUGVFRP
D[PHGLDD[BPSGI
$VFDQQHGFRS\RIWKHRULJLQDODUWLFOHLQMSHJ
IRUPDWLVDVRIWKLVZULWLQJVWLOODYDLODEOH
PHPEHUV[RRPFRPDURQQHOVRQPFWXEH
7KHILUVWSDJHRIWKHRULJLQDO7KH5HDO0F7XEHDUWLFOH
RI $0
7KH5HDO0F7XEH,,
)HDWXUHV
+LJKLQWHUQDOJDLQ$Y PD[RYHUG%
DWWHQXDWRUDWRXWSXWG%
VWDJHGHVLJQ
,QGHSHQGHQWJDLQFRQWURODWRXWSXWRIHDFKVWDJH
6LPSOHORZFRVWSRZHUVXSSO\
XVLQJSDUWVIURPWZR9ZDOOZDUWV
9HU\ORZ%FXUUHQWGHPDQGXQGHU$WRWDO
/RZKXPDQGQRLVH
P9DWPD[JDLQHTXLYDOHQWLQSXW9
'HVLJQHGIRU$;EXWXVDEOHZLWKDQ\VLPLODUWZLQWULRGHV
,QWHJUDWHGE\SDVVVZLWFK
5HDGLO\FXVWRPLVDEOHE\FKDQJLQJFRPSRQHQWYDOXHVWRVXLW
&RS\ULJKW1RWLFH
$OOFRQWHQWVRIWKLVDUWLFOHLQFOXGLQJDOOVFKHPDWLFVWH[WGLDJUDPVDQG
SKRWRJUDSKVDUH&RS\ULJKWE\)UHG1DFKEDXU'RJVWDU0XVLF$OO
ULJKWVUHVHUYHG7KLVILOHPD\EHIUHHO\FLUFXODWHGEXWQRQHRIWKHFRQWHQWVPD\
EHSRVWHGDQ\ZKHUHHOVHZLWKRXWH[SUHVVSHUPLVVLRQRIWKHFRS\ULJKWKROGHU
7KHLQIRUPDWLRQSUHVHQWHGKHUHPD\EHXVHGIRUSHUVRQDOQRQFRPPHUFLDO
XVHRQO\$Q\FRPPHUFLDODSSOLFDWLRQVRIWKLVGHVLJQRUDQ\SDUWWKHUHRI
UHTXLUHVSUHYLRXVOLFHQVLQJDUUDQJHPHQWVZLWKWKHDXWKRUDQGFRS\ULJKWKROGHU
)UHG1DFKEDXU
$UWLFOH,QGH[
,QWURGXFWLRQ
%DVLF7XEH7KHRU\
+RZ,W:RUNV
%XLOGLQJDQG8VLQJ7KH5HDO0F7XEH,,
3DUWV/LVW
$SSHQGLFHV
&RQWDFW
<RXPD\FRQWDFWPHUHJDUGLQJWKLVSURMHFWDWIUHGQ#QHWLGHDFRP,
GEH
KDSS\WRKHDUIURP\RXDQGDQ\EXJUHSRUWVRUVXJJHVWLRQVIRU
LPSURYHPHQWDUHDOZD\VZHOFRPH
RI $0
7KH5HDO0F7XEH,,
:ULWWHQ6HSW
5HY-DQ
7+(5($/0F78%(
E\)UHG1DFKEDXU'RJVWDU0XVLF
,1752'8&7,21
:LWKWKHSKHQRPHQRQRIWKHUHWURPRYHPHQWLQPXVLFHOHFWURQLFVWKHUHKDVEHHQUHQHZHG
LQWHUHVWLQWKHYDFXXPWXEH6HYHUDOPDQXIDFWXUHUVDUHDJDLQEXLOGLQJWXEHDPSOLILHUVDQGRWKHU
GHYLFHVZLWKFODLPVRIYLQWDJHVRXQGDQGZDUPWXEHGLVWRUWLRQ+HUH
V\RXURSSRUWXQLW\WR
H[SHULPHQWZLWKWKHVHLQWHUHVWLQJGHYLFHVE\EXLOGLQJDWXEHSUHDPSOLILHUDQGGLVWRUWLRQXQLW
7KHGLIIHUHQFHVEHWZHHQ7KH5HDO0F7XEH,,DQGWKHRULJLQDOGHVLJQDUH
7KHSRZHUVXSSO\KDVEHHQPRGLILHGWRXVHWKHSDUWVLQVLGHLQH[SHQVLYHDQGFRPPRQO\
DYDLODEOHYROWP$ZDOOZDUW'&SRZHUVXSSOLHV<RXZLOOQHHGWZRRIWKHVH
6RPHXVHUVUHSRUWHGO\KDGWURXEOHZLWKH[FHVVLYHKXP7KLVSRVVLELOLW\KDVEHHQJUHDWO\
UHGXFHGE\XVLQJ'&IRUWKHWXEHILODPHQWV
7KHUHOD\FLUFXLWIRUVZLWFKLQJPRGHVYLDDQH[WHUQDOIRRWSHGDOVZLWFKKDVEHHQUHSODFHGE\
DQRQERDUGSXVKRQSXVKRIIEXWWRQVZLWFKVLPSOLI\LQJWKHFLUFXLWU\DQGPDNLQJWKHXQLWD
VHOIFRQWDLQHG6WRPS%R[
7KLVFRQVWUXFWLRQDUWLFOHKDVEHHQUHZULWWHQDQGH[SDQGHGHVSHFLDOO\DVUHJDUGVWR
WHFKQLTXHVIRUQRLVHDQGKXPDYRLGDQFH7KHWRSLFRISURSHUJURXQGLQJKDVEHHQFRYHUHGLQ
JUHDWHUGHWDLO
&RVWZLOOGHSHQGRQKRZPDQ\SDUWV\RXDOUHDG\KDYHLQ\RXUMXQNER[EXWLWVKRXOGQ
WH[FHHG
DERXWLI\RXVKRSFDUHIXOO\7KHFUXFLDOSDUWRIFRXUVHLVWKH$;RU$;$YDFXXPWXEH
DQGWKHSLQPLQLDWXUHWXEHVRFNHWWRJRZLWKLW7KHVHDUHDJDLQTXLWHFRPPRQO\DYDLODEOH
ERWKIURPRQOLQHVRXUFHVDQGIURPPDQ\HOHFWURQLFVMREEHUV,I\RXJHWVWXFNFDOODURXQGWR
PXVLFDOLQVWUXPHQWUHSDLUVKRSVWKDWVSHFLDOL]HLQYDFXXPWXEHJHDUEXWGRQ
WOHWDQ\RQHJLYH\RX
WKHH[SHQVLYHEHFDXVHWKH\
UHUDUHOLQH
7KHFODVVLF$;ZDVXVHGLQDZLGHUDQJHRIYLQWDJHWXEHJHDUPDLQO\EHFDXVHRILWVUHODWLYHO\
KLJKJDLQDQGUHDVRQDEOHOLQHDULW\$VWXEHVJRLWLVUHODWLYHO\TXLHWQRWZLWKVWDQGLQJWKHKLJK
GHJUHHRIWKHUPDOQRLVHLQKHUHQWLQDOOYDFXXPWXEHVWKH$;HVSHFLDOO\LWV(XURSHDQ
HTXLYDOHQWWKH(&&LVDWOHDVWPHFKDQLFDOO\FRQVWUXFWHGWRPLQLPL]HPLFURSKRQLFVQRLVH
RI $0
7KH5HDO0F7XEH,,
FDXVHGE\PHFKDQLFDOYLEUDWLRQRILWVLQWHUQDOHOHPHQWV
,I\RXLQWHQGWRH[SHULPHQWZLWKGLIIHUHQWWXEHVWRJHWMXVWWKDWVRXQGDOVRNHHSDQH\HRXWIRU
W\SH$8DQG$7DQGWKHLU(XURSHDQFRXVLQV(&&DQG(&&DVZHOODV$<DQG
$=7KH$7DQG$=ZLOOJLYHFRPSDUDEOHJDLQEXWWKHLUFOLSSLQJFKDUDFWHULVWLFVDUHD
OLWWOHGLIIHUHQW7KH$8ZLOOJLYHFRQVLGHUDEO\OHVVJDLQDQGZLOOWKHUHIRUHRQO\EHJHQHUDOO\
XVHIXOLIWKHRYHUGULYHXQLWLVSODFHGODWHULQ\RXUHIIHFWVFKDLQ
7KH7XEH6RXQG
6RZKDWLVLWDERXWWXEHVWKDWPDNHWKHPVRXQGGLIIHUHQWIURPVROLGVWDWHGHYLFHVOLNHWUDQVLVWRUV"
7KHUHLVUHDOO\QRWKLQJP\VWLFDOWRWKLVLQUHDOLW\WKHLUXQLTXHVRXQGGHULYHVPRUHIURPWKHLU
VKRUWFRPLQJVWKDQIURPDQ\RWKHUFRQVLGHUDWLRQ%HLQJKRWEXON\DQGH[SHQVLYHPDQXIDFWXUHUV
FRXOGQ
WDIIRUGWRPDNHDPSOLILHUVZLWKPDVVLYHJDLQZKLFKZRXOGKDYHDOORZHGWKHPWRXVHODUJH
DPRXQWVRIQHJDWLYHIHHGEDFNWROLQHDUL]HWKHLUUHVSRQVHDQGUHGXFHGLVWRUWLRQ7KHH[FHSWLRQZDV
IRUDSSOLFDWLRQVVXFKDVVWXGLRPRQLWRUVDQGVLPLODUKLJKHQGHTXLSPHQW<RXRQO\KDYHWROLVWHQWR
VXFKWXEHFODVVLFVDV'DYH%UXEHFN
V7DNH)LYHRU+HDUW
V'UHDPERDW$QQLHDOEXPVWRKHDUIRU
\RXUVHOIWKDWWXEHHTXLSPHQWFDQVRXQGDQ\ZKHUHDVJRRGDVLIQRWEHWWHUWKDQWRSHQG
VROLGVWDWHJHDU,I\RX
UHLQWHUHVWHGLQEXLOGLQJDPLGGOHHQGKLJKILGHOLW\DPSOLILHUFKHFNRXW
P\VXUSULVLQJO\VLPSOH\HWFDSDEOH5$5HIHUHQFH$PSOLIHUGHVLJQ
)RUPXVLFDOLQVWUXPHQWDPSOLILHUVKRZHYHUWKHLQKHUHQWQRQOLQHDULW\DQGKLJKGHJUHHRI
HYHQKDUPRQLFGLVWRUWLRQRIWKHUDZWXEHDPSOLILHUOLWWOHRUQRQHJDWLYHIHHGEDFNFRQWULEXWHVWR
WKHFKDUPRILWVVRXQG:DUPDQGJXWV\DUHEXWWZRRIWKHPDQ\DGMHFWLYHVXVHGWRGHVFULEH
WKHWXEHVRXQG
7KLVKDUPRQLFGLVWRUWLRQLVHVSHFLDOO\SURQRXQFHGZKHQDWXEHLVRYHUGULYHQ8QOLNHDWUDQVLVWRU
ZKLFKUHPDLQVUHDVRQDEO\OLQHDUXQWLOLWUHDFKHVFXWRIIQRFXUUHQWWKURXJKWKHGHYLFHRU
VDWXUDWLRQPD[LPXPFXUUHQWWKURXJKWKHGHYLFHDWXEHZLOOH[KLELWDVRIWHUPRUHJUDGXDO
ERWWRPLQJRXWDWHLWKHUH[WUHPH7KLVLVHVSHFLDOO\SURQRXQFHGDWWKHVDWXUDWLRQHQGLHDVWKH
YROWDJHDFURVVWKHWXEHDSSURDFKHV]HUR7KHUHLVQRVKDUSVDWXUDWLRQNQHHDQGDQ\DWWHPSWWR
GHILQHWKHSRLQWDWZKLFKDWXEHUHDFKHVVDWXUDWLRQLVVWULFWO\DUELWUDU\
7KHUHDUHZLGHYDULDQFHVLQWKHVHFKDUDFWHULVWLFVEHWZHHQWXEHVRIDJLYHQIDPLO\DQGHYHQ
EHWZHHQVSHFLPHQVRIDJLYHQW\SH:KDW
VPRUHDWXEH
VFKDUDFWHULVWLFVFKDQJHDVWKHWXEH
DJHV7KLVFDQEHDUHDOQLJKWPDUHLI\RX
UHWU\LQJWRGHVLJQFRQVLVWHQWSUHGLFWDEOHJHDUXVLQJ
WXEHV+RZHYHUWKHVHIDFWRUVDOODGGXSWRWKHP\VWLTXHRIWKHYDFXXPWXEHIRUPXVLFLDQVDQG
H[SHULPHQWHUV,
YHNQRZQPXVLFLDQVZKRWUHDVXUHROGZRUQRXWJDVV\$;
VEHFDXVHRIWKH
SDUWLFXODUO\GLUW\GLVWRUWLRQRIZKLFKWKH\
UHFDSDEOH
7KH$;LVEXWRQHRIDZKROHIDPLO\RIGXDOWULRGHV2WKHUGHYLFHVLQWKHIDPLO\DUHWKH$7
$8$<$=DORQJZLWKLPSURYHGYHUVLRQVLQGLFDWHGZLWKDQ$VXIIL[DORQJZLWK
QXPHURXV(XURSHDQHTXLYDOHQWV7KHILODPHQWKHDWHUUHTXLUHPHQWVDUHDOOWKHVDPHHLWKHU
YROWVDWDURXQGPLOOLDPSVDVVXJJHVWHGE\WKHILUVWWZRGLJLWVRIWKHW\SHQXPEHUVRU
YROWVDWPLOOLDPSVGHSHQGLQJRQKRZWKHWZRILODPHQWVDUHFRQQHFWHG$QRWKHUERRQLVWKDW
WKHSLQRXWVIRUDOORIWKHPDUHLGHQWLFDOJRLQJFORFNZLVHIURPSLQWKH\DOOJR3ODWH*ULG
&DWKRGHWULRGH)LODPHQW)LODPHQW3ODWH*ULG&DWKRGHWULRGH)LODPHQWFHQWUH7KHFLUFXLW
SUHVHQWHGKHUHZLOOZRUNZLWKDQ\RIWKHWXEHVLQWKLVIDPLO\JLYLQJ\RXWKHRSSRUWXQLW\WR
H[SHULPHQWZLWKGLIIHUHQWW\SHVWRJHWWKHH[DFWVRXQG\RX
UHORRNLQJIRU
RI $0
7KH5HDO0F7XEH,,
%$6,&78%(7+(25<
3UREDEO\WKHPRVWLPSRUWDQWPHPEHURIWKHIDPLO\RIYDFXXPGHYLFHVZHUHIHUWRDVWXEHVLVWKH
YDFXXPWULRGH7KLVLVWKHVLPSOHVWYDFXXPGHYLFHWKDWLVFDSDEOHRIDPSOLILFDWLRQLHSURYLGLQJ
DQRXWSXWVLJQDOJUHDWHUWKDQDQGURXJKO\SURSRUWLRQDOWRDQDSSOLHGLQSXWVLJQDO,QWKLVUHVSHFW
LWLVIXQFWLRQDOO\DQDORJRXVWRWKHXELTXLWRXVWUDQVLVWRU
8QOLNHWUDQVLVWRUVKRZHYHUWXEHVUHTXLUHDWOHDVWWZRSRZHUVXSSOLHV%HIRUHWKHDGYHQWRI
XQLYHUVDOKRPHSRZHUPRVWHOHFWURQLFJHDUZDVRSHUDWHGRQEDWWHULHV2QHEDWWHU\FDOOHGWKH$
EDWWHU\ZDVQHHGHGIRUWKHORZYROWDJHUHODWLYHO\KLJKFXUUHQWVXSSO\WRKHDWWKHWXEH
VILODPHQW
$QRWKHUWKH%EDWWHU\ZDVWKHKLJKYROWDJHORZFXUUHQWEDWWHU\XVHGWRSRZHUWKHWXEH
VSODWH
FLUFXLW7KLVDQDFKURQLVPKDVSHUVLVWHGWRWKLVGD\LI\RXHYHUZRQGHUHGZK\\RXKHDURIGHYLFHV
FRQQHFWHGWR%QRZ\RXNQRZ,QWKHHDUO\GD\VWKHUHZDVHYHQD&EDWWHU\XVHGWR
SURYLGHWKHQHJDWLYHJULGELDVIRUVRPHFLUFXLWV7KLVGLGQ
WSHUVLVWIRUYHU\ORQJH[FHSWLQVSHFLDO
UDGLRDSSOLFDWLRQVEHFDXVHWKHQHJDWLYHJULGELDVFDQXVXDOO\EHREWDLQHGE\XVLQJDFDWKRGH
UHVLVWRUDVLQRXUFLUFXLWRUE\RWKHUPHDQV
3K\VLFDOO\DWXEHRSHUDWHVE\KHDWLQJWKHFDWKRGHRQHRIWKHHOHFWURGHVLQVLGHWKHYDFXXPL]HG
HQYHORSH7KLVFDXVHVHOHFWURQVLQWKHFDWKRGHWRDWWDLQHQRXJKYHORFLW\WROHDYHWKHVXUIDFH
RI $0
7KH5HDO0F7XEH,,
IRUPLQJDVSDFHFKDUJHDURXQGWKHFDWKRGH7KHSRVLWLYHO\FKDUJHGSODWHDOVRVRPHWLPHV
FDOOHGDQRGHXVXDOO\VXUURXQGLQJDQGFRQFHQWULFZLWKWKHFDWKRGHDWWUDFWVWKLVVSDFHFKDUJH
FDXVLQJDQHOHFWURQFXUUHQWWRIORZWKURXJKWKHVSDFHEHWZHHQWKHFDWKRGHDQGSODWH,IWKHSODWH
LVQHJDWLYHO\FKDUJHGWKHVSDFHFKDUJHLVUHSHOOHGDQGQRFXUUHQWIORZVWKLVLVKRZWKHYDFXXP
GLRGHZRUNV6XFKYDFXXPGLRGHVZHUHRQFHDOPRVWXQLYHUVDOO\XVHGDVUHFWLILHUVLQSRZHU
VXSSOLHVGHWHFWRUVLQUDGLRFLUFXLWVDQGVLPLODUDSSOLFDWLRQV
,QZKDW
VFDOOHGDYDFXXPWULRGHWKHUHLVDQRWKHUHOHFWURGHFDOOHGWKHJULGSODFHGEHWZHHQWKH
FDWKRGHDQGWKHSODWHFRQVLVWLQJRIDVSLUDOVFUHHQRIILQHZLUH7KHJULGLVQRUPDOO\ELDVHG
QHJDWLYHO\VRWKDWLWGRHVQRWDFWDVDVHFRQGDU\SODWHDQGGUDZFXUUHQW6PDOOFKDQJHVLQYROWDJH
RQWKHJULGFDXVHVLJQLILFDQWO\JUHDWHUFKDQJHVLQHOHFWURQFXUUHQWWKURXJKWKHWXEHIURPFDWKRGH
WRSODWHUHVXOWLQJLQDPSOLILFDWLRQ
$VWKHWXEHZDVGHYHORSHGDGGLWLRQDOJULGVZHUHDGGHGWRIRUPILUVWWKHWHWURGHZKLFKKDVD
VHFRQGJULGDWDSRVLWLYHSRWHQWLDOWRDFWDVDQLQWHUPHGLDWHSODWHUHVXOWLQJLQDPRUH
FRQVWDQWFXUUHQWFKDUDFWHULVWLF7KHSUREOHPZLWKWHWURGHVLVWKDWWKHUHODWLYHO\KLJKHOHFWURQ
YHORFLWLHVFDXVHGVHFRQGDU\HPLVVLRQFDXVHGE\HOHFWURQVEHLQJERXQFHGRIIWKHSODWH7KH
SHQWRGHRYHUFDPHWKLVE\DGGLQJDQRWKHUJULGDWDORZSRWHQWLDOEHWZHHQVFUHHQDQGSODWH
7KHFXOPLQDWLRQRIPXOWLJULGPDQLDZDVWKHKHSWRGHZKLFKLVQRWDFRROIURJEXWUDWKHUD
ILYHJULGGHYLFHRQFHXVHGH[WHQVLYHO\DVWKHRVFLOODWRUPL[HULQKRPHUDGLRUHFHLYHUV
:KHQGHDOLQJZLWKYDFXXPWXEHVLWFDQPDNHVHQVHWRFRQVLGHUFXUUHQWIORZLQJIURPWKHQHJDWLYH
WHUPLQDOWRWKHSRVLWLYHWHUPLQDORIWKH%VXSSO\EHFDXVHWKDW
VZKDWSK\VLFDOO\KDSSHQV7KLVLV
FDOOHGWKHHOHFWURQFXUUHQWFRQYHQWLRQDQGZDVZKDWZDVWDXJKWLQPRVWWHFKQRORJLVWFRXUVHVXS
XQWLODFRXSOHGHFDGHVDJR7KHSUREOHPZLWKWKLVFRQYHQWLRQLVWKDWWKHDOJHEUDLFVLJQVHQGXS
EDFNZDUGVLQFLUFXLWGHVLJQDQGDQDO\VLVVRHQJLQHHULQJFRXUVHVWKDQNIXOO\XVHGWKHRSSRVLWH
FRQYHQWLRQFDOOHGFRQYHQWLRQDOFXUUHQWIORZLQZKLFKFXUUHQWLVDVVXPHGWRIORZIURPSRVLWLYHWR
QHJDWLYH7KLVKDVWKHDGYDQWDJHLQVHPLFRQGXFWRUFLUFXLWVRIPDNLQJWKHDUURZVLQGLRGHDQG
WUDQVLVWRUV\PEROVSRLQWLQWKHULJKWGLUHFWLRQ:KHQGHDOLQJZLWKWXEHVKRZHYHUZKLFK
FRQYHQWLRQ\RXXVHLVVWULFWO\DPDWWHURISHUVRQDOSUHIHUHQFH
)LQDOO\,VKRXOGSRLQWRXWWKDWXQOLNHWUDQVLVWRUVWXEHVFRPHLQRQO\RQHSRODULW\EHFDXVHZHRQO\
KDYHRQHW\SHRIFKDUJHFDUULHUHOHFWURQV8QOLNHWKHVROLGVWDWHQRRQHKDV\HWILJXUHGRXWKRZ
WRPDNHKROHVLQDYDFXXP,VXSSRVHLW
VWKHRUHWLFDOO\SRVVLEOHWRPDNHWXEHVRXWRIDQWLPDWWHU
WRJHW313WXEHVEXWVWRUDJHDQGLQWHUIDFLQJFRXOGEHDELWRIDKHDGDFKH
+2:,7:25.6
5HIHUWRVFKHPDWLFSURYLGHGVHSDUDWHO\
YROW$&SRZHULVDSSOLHGYLDSRZHURQRIIVZLWFK6WRWKHSULPDU\RIWUDQVIRUPHU7DQG
SRZHURQLQGLFDWRU,DQHRQODPSZLWKEXLOWLQVHULHVUHVLVWRU7LVVFURXQJHGRXWRIDQ
LQH[SHQVLYHYROWPLOOLDPSZDOOZDUW'&SRZHUVXSSO\
7KHYROW$&RXWSXWIURP7LVDOVRFRXSOHGLQWRDQLGHQWLFDOWUDQVIRUPHU7ZLUHGEDFNZDUGV
RI $0
7KH5HDO0F7XEH,,
7KLVVWHSVWKHYROWDJHEDFNXSWRDERXW9$&IRURXUSODWHVXSSO\'2127RPLWWKLV
WUDQVIRUPHU$OWKRXJKWKHFLUFXLWZLOOZRUNLI\RXGHULYHWKH9$&GLUHFWO\IURPWKHOLQH\RX
FRXOGVHULRXVO\LQMXUHRUHYHQNLOO\RXUVHOIRUVRPHERG\HOVH,IWKDW
VQRWHQRXJKGLVLQFHQWLYH
IURPLVRODWLQJ\RXU%VXSSO\\RXFDQDOVRUXLQWKHJHDUWRZKLFKDQXQLVRODWHGSLHFHRI
HTXLSPHQWLVDWWDFKHG'LRGHV'IXOOZDYHUHFWLI\RXU%YROWDJH$VLVWKHFDVHZLWK''
WKHVHFDQHLWKHUEHIRXUGLVFUHWH1GLRGHVRUD9$EXWWRQVW\OHIXOOZDYHEULGJH
PRGXOH1RWHWKDWLQWKLVFDVHLW
VQRWXVXDOO\SRVVLEOHWRXVHWKHGLRGHVIURPWKHZDOOZDUWDV
WKH\
UHXVXDOO\1RU1XQLWVQRWFDSDEOHRIZLWKVWDQGLQJWKHKLJKHU$&YROWDJH
&DSDFLWRU&ILOWHUVWKHUHVXOWLQJSXOVDWLQJ'&DQGWKHQHWZRUNFRPSRVHGRI5DQG&DGGDSROH
RIORZSDVVILOWUDWLRQWRUHGXFHULSSOH7KHHQGUHVXOWLVDERXWYROWV'&XQGHUORDGWRSRZHU
WKHSODWHFLUFXLWVRIRXUSUHDPSOLILHU
7KHLQSXWVLJQDOIURP-LVFRXSOHGWRWKHJULGRIWKHILUVWVWDJHYLDFDSDFLWRU&,QSXWUHVLVWRU5
DFWVDVDJULGOHDNWRSUHYHQWDQ\HOHFWURQVDFFXPXODWHGRQWKHJULGIURPSLOLQJXSRQ&WKH
UHVXOWLQJQHJDWLYHYROWDJHZRXOGHYHQWXDOO\FDXVHRXUWXEHWRDSSURDFKFXWRII7KHYDOXHZDV
FKRVHQWREHKLJKHQRXJKWRQRWFDXVHDQ\VLJQLILFDQWORDGLQJRQWKHLQSXWVLJQDOZKLOHEHLQJORZ
HQRXJKWRDVVXUHWKDWWKHJULGLVELDVHGYHU\QHDUWRJURXQGSRWHQWLDO
5LVRXUSODWHORDGUHVLVWRU7KHYDU\LQJSODWHFXUUHQWIORZLQJWKURXJKWKLVUHVLVWRUFDXVHVD
YROWDJHGURSSURSRUWLRQDOWRWKHFKDQJHLQFXUUHQW5WKHUHIRUHSOD\VDPDMRUSDUWLQGHILQLQJWKH
YROWDJHJDLQRIRXUDPSOLILHUVWDJH([SHULPHQW6XJJHVWLRQWRSUHYHQWSRVVLEOHGDPDJHWRWKH
WXEHDQGRUSRZHUVXSSO\GRQ
WJRORZHUWKDQDERXW.IRU5RU5
7KHSODWHFXUUHQWDOVRIORZVWKURXJKFDWKRGHUHVLVWRU5FDXVLQJDPXFKVPDOOHUYROWDJHGURS
DFURVVLW7KHUHVXOWLVWKDWWKHFDWKRGHLVVOLJKWO\SRVLWLYHZLWKUHVSHFWWRJURXQGDQGVLQFHWKH
JULGLVDSSUR[LPDWHO\DWJURXQGSRWHQWLDOLWIROORZVWKDWWKHJULGZLOOEHQHJDWLYHZLWKUHVSHFWWR
WKHFDWKRGH7KLVLVKRZZHJHWWKHQHFHVVDU\QHJDWLYHJULGELDVREYLDWLQJWKHQHHGIRUDWKLUG
SRZHUVXSSO\7KLVVFKHPHDOVRKHOSVWRVWDELOLVHWKHFLUFXLWDJDLQVWFKDQJHVLQOLQHYROWDJHWXEH
DJLQJHWFE\DGGLQJDELWRI'&IHHGEDFN)RULQVWDQFHLIOLQHYROWDJHGURSVFDXVLQJDGHFUHDVH
LQSODWHFXUUHQWWKHELDVYROWDJHZLOOGHFUHDVHDOVRWHQGLQJWREXFNWKHGHFUHDVHLQSODWHFXUUHQW
7KHVLJQDORXWSXWDWWKHSODWHRIWKHILUVWVWDJHLVFRXSOHGLQWRDVLPLODUVWDJHE\FDSDFLWRU&DQG
*$,1FRQWURO597KHFRPSRQHQWYDOXHVLQWKHWZRVWDJHVZHUHFKRVHQPRUHRUOHVV
H[SHULPHQWDOO\WRVXLWP\RZQWDVWHV,VXJJHVWWKDW\RXXVHWKHVHYDOXHVDVDVWDUWLQJSRLQWDQG
DJDLQH[SHULPHQW
7KHRXWSXWRIWKHVHFRQGVWDJHLVURXWHGWKURXJKDQDWWHQXDWRUFRQVLVWLQJRI55DQG287387
FRQWURO597KHDFFXPXODWHGJDLQDIWHUWKHVHFRQGVWDJHLVVRKLJKWKDWWKHDEVHQFHRIDQ
DWWHQXDWRUZRXOGPDNHLWULGLFXORXVO\GLIILFXOWLIQRWLPSRVVLEOHWRDGMXVWWKHFRQWUROVIRUYDU\LQJ
GHJUHHVRIRYHUGULYHOHWDORQHEDODQFHWKHRYHUGULYHVLJQDOZLWKWKHXQPRGLILHGVLJQDOZKHQLQ
E\SDVVPRGH7KHZLSHURI59LVWKHRXWSXWRIRXUFLUFXLWZKLFKSDVVHVYLDWKHFRQWDFWVRI
E\SDVVVZLWFK6:DWRRXWSXWMDFN-7KHRWKHUSROHRIWKHVZLWFK6:ELVXVHGWROLJKW/('
WRLQGLFDWHWKDWWKHRYHUGULYHGLVWRUWLRQPRGHLVHQDEOHG:KHQ6:LVLQWKHRWKHUSRVLWLRQWKH
RXWSXWMDFNLVFRQQHFWHGGLUHFWO\WRWKHLQSXWHIIHFWLYHO\E\SDVVLQJWKHHQWLUHFLUFXLW7KH
PHJRKPRIORDGLQJE\UHVLVWRU5ZLOOEHQHJOLJLEOHDQGWKHQHWHIIHFWLVDVLIWKHFLUFXLWLVQ
WWKHUH
DWDOO
RI $0
7KH5HDO0F7XEH,,
%8,/',1*7+(5($/0F78%(,,
7KHRULJLQDO5HDO0F7XEHZDVEXLOWLQWRD[[SODVWLFPLQLER[ZLWKDQDOXPLQXPOLG
IRUWKHFRQWUROVEHFDXVH,ZDQWHGDXQLWWKDWZDVDVVPDOODQGSRUWDEOHDVSRVVLEOH$GPLWWHGO\
WKHOD\RXWZDVDOLWWOHWLJKW6RIRUWKHVHFRQGLQFDUQDWLRQ,XVHGD[[DOXPLQXPER[
VDOYDJHGIURPDQROGWHOHSKRQHUHOD\XQLW:KLOHWKHRYHUDOOYROXPHLVDERXWWKHVDPHWKH
JHRPHWU\PDGHIRUDOHVVFUDPSHGDVVHPEO\$VLQWKHRULJLQDOWKHWXEHVRFNHWZDVPRXQWHGRQ
DQ/VKDSHGPHWDOVXEFKDVVLVDERXW[%LDVLQJDQGFRXSOLQJFRPSRQHQWVZHUHVROGHUHG
EHWZHHQWKHVRFNHWDQGFRQYHQWLRQDOSKHQROLFWHUPLQDOVWULSV7KHWHUPLQDOVWULSVDQGWXEHVRFNHWV
ZHUHVHFXUHGWRWKHFKDVVLVXVLQJVPDOOEROWVDQGQXWV
8QOLNHWKHRULJLQDOYHUVLRQDOOFRPSRQHQWVZHUHPRXQWHGRQWRWKHWRSFDVHKDOIZKLFKHOLPLQDWHG
ZLUHVEHWZHHQWKHWZRKDOYHVPDNLQJDVVHPEO\DQGWHVWLQJDORWHDVLHU7KHSKRWRVKRZVWKH
ILQLVKHGSURMHFWDQGFDQEHXVHGDVDJXLGHLQ\RXURZQLPSOHPHQWDWLRQ
<RXPD\SUHIHUWROHDYH\RXUVHOIDELWPRUHVSDFHIRUH[SHULPHQWLQJLQZKLFKFDVH,VXJJHVWD
ODUJHUER[:LWKDVLQJOH$;KHDWLVQRWDELJFRQVLGHUDWLRQVR\RXGRQ
WKDYHWRZRUU\DERXW
YHQWLODWLRQ2ULHQWDWLRQRIWKHWXEHGRHVQ
WPDWWHUHLWKHUWKH$"IDPLO\FDQRSHUDWHLQDQ\
RULHQWDWLRQQRWQHFHVVDULO\DJLYHQIRUDOOWXEHV
%HFDUHIXODERXWZLULQJHVSHFLDOO\LQWKHFRPSDUDWLYHO\KLJKYROWDJHSODWHFLUFXLWV%HVXUHWRXVH
FDSDFLWRUVWKDWZLOOVWDQGWKHYROWDJH,VXJJHVWVWD\LQJDZD\IURPFDUERQFRPSRVLWLRQW\SH
UHVLVWRUVHVSHFLDOO\IRU5DQG5RWKHUZLVH\RXFDQJHWDQRWKHUFODVVLFWXEHVRXQGORWVRIKLVV
6RPHFRPPHQWVRQWKHSRZHUVXSSO\DVPHQWLRQHGHDUOLHUWKH5HDO0F7XEH,,XVHVWZR
LQH[SHQVLYH'&ZDOOZDUWSRZHUVXSSOLHVUDWHGDWYROWV'&DWPLOOLDPSHUHV/DUJHUXQLWV
ZLOOZRUNMXVWILQHVKRXOG\RXKDSSHQWRKDYHDSDLURIP$RUP$XQLWVLQ\RXU
MXQNER[EXWZLOOUHTXLUHDSSURSULDWHO\PRUHUHDOHVWDWHLQ\RXUSURMHFWER[
RI $0
7KH5HDO0F7XEH,,
7KHUHDUHWZRJRRGZD\VRIRSHQLQJWKHSODVWLFFDVHLQRUGHUWRUHWULHYHWKHWUDQVIRUPHUV7KH
ILUVWPHWKRGLVWRFDUHIXOO\FXWDURXQGWKHVHDPXVLQJDKDFNVDZ%HFDUHIXO\RXGRQ
WFXWWRR
GHHSRU\RXPLJKWGDPDJHWKHWUDQVIRUPHU7KHRWKHUZD\LVWRVTXLVKWKHZDOOZDUWLQDVKRS
YLVHWREUHDNWKHZHOGDORQJWKHVHDP7KLVDSSHDUVWRZRUNEHVWLI\RXFODPSLWGLDJRQDOO\
FRUQHUWRFRUQHUILUVWLQRQHGLUHFWLRQDQGWKHQLQWKHRWKHU,IWKHRQHV\RXKDSSHQWRKDYHGRQ
W
UHVSRQGZHOOWRWKLVDSSURDFKXVHWKHILUVWPHWKRG
<RXZLOOSUREDEO\HYHQEHDEOHWRXVHWKHOLWWOHUHFWLILHUILOWHU3&ERDUGVLQVLGHWKHZDOOZDUWV,I
\RXUVKDYHIRXUGLRGHVWKDW
VSHUIHFW,IWKH\KDYHRQO\WZRWKLVPHDQVWKH\
UHXVLQJD
FHQWUHWDSSHGSRZHUWUDQVIRUPHUZKLFKUHTXLUHVDVOLJKWO\GLIIHUHQWFLUFXLWDSSURDFKVHHWKH
DOWHUQDWHSRZHUVXSSO\VFKHPDWLFLQ$SSHQGL[LIWKLVLVWKHFDVH1RWHERWKWUDQVIRUPHUVKDYH
WREHWKHVDPHW\SHLH\RXFDQ
WXVHDWZRGLRGHZDOOZDUWDQGDIRXUGLRGHRQHWRJHWKHU
,I\RX
UHOXFN\DVZDV,\RXPLJKWJHWERDUGVWKDWDOUHDG\KDYHDSODFHIRUDVHFRQGFDSDFLWRU
ZLUHGLQSDUDOOHOZLWKWKHILUVW7KLVFDQEHXVHGWRDGYDQWDJHLQWKHKLJKYROWDJHVXSSO\E\
LQVWDOOLQJERWK)9ILOWHUFDSDFLWRUVULJKWRQWKHERDUGFXWWLQJWKHWUDFHFRQQHFWLQJWKH
SRVLWLYHHQGVDQGEULGJLQJWKHWUDFHZLWKWKHNUHVLVWRU5,GRQ
WUHFRPPHQGWKLVIRUWKHORZ
YROWDJHVXSSO\VLQFHWKHFRQVLGHUDEO\ODUJHUUHVLVWRU5ZRQ
WILWDVZHOO
1RWHZKHQZLULQJXSWKHSRZHUVXSSO\WKDWWUDQVIRUPHU7WKHKLJKYROWDJHVWHSXSWUDQVIRUPHU
LVZLUHGEDFNZDUGVZKDWXVHGWREHLWVSULPDU\LVDFWXDOO\RXUVHFRQGDU\ZLQGLQJ,I\RXORVH
WUDFNRIZKLFKZLQGLQJLVZKLFKORRNDWWKHVL]HRIWKHZLUHWKHORZYROWDJHVLGHZLOOEHZRXQG
ZLWKFRQVLGHUDEO\WKLFNHUZLUH,W
VWKHVHWKLFNHUZLUHVWKDWDUHFRQQHFWHGWRHDFKRWKHULQWKLV
SURMHFW
2.VRIDU"1H[WZLUHXSWKHILODPHQWOLQHV7KHRXWSXWIURPWKHORZYROWDJHVXSSO\VKRXOGFRQQHFW
WRSLQVDQGZKLFKLVZKLFKGRHVQ
WPDWWHURIWKHWXEHVRFNHWZLWKWKHZLUHVWZLVWHG
WRJHWKHU$WWKLVSRLQWWKHWXEHVKRXOGOLJKWXSZKHQ\RXHQHUJL]HWKHSRZHUVXSSO\$WWKLVSRLQW
\RXFDQDOVRZLUHXSWKH/('DQGLWVGURSSLQJUHVLVWRU51RWHWKDW\RXUYROWDJHEHWZHHQSLQV
DQGZLOOQRZEHLQWKHUDQJHRIYROWVDQGWKHKLJKYROWDJHVXSSO\ZLOODOVREHGUDJJHG
GRZQJHQHUDOO\WRDERXWYROWV7RDYRLGDQXQSOHDVDQWVXUSULVHDV\RX
UHZRUNLQJRQWKLVRU
DQ\WXEHFLUFXLWGLVFKDUJHWKHKLJKYROWDJHFDSDFLWRUVDIWHUWXUQLQJRIIWKHXQLWDQGXQSOXJJLQJLW
IURPWKHZDOOVRFNHW7KHEHVWZD\WRGRWKLVLVWRFOLSOHDGD.UHVLVWRUEHWZHHQWKHSRVLWLYH
DQGQHJDWLYHWHUPLQDOVRIWKHSRZHUVXSSO\DQGOHDYHLWRQIRUVHYHUDOVHFRQGVEHIRUHSURFHHGLQJ
ZLWK\RXUZRUN'RQ
WIRUJHWWRXQFOLSLWEHIRUHDSSO\LQJSRZHUDJDLQ
2QFHWKHSRZHUVXSSO\LVZRUNLQJZLUHXSWKHJURXQGOLQHV7KHJURXQGLQJPHWKRGLVYHU\
LPSRUWDQWLQPLQLPLVLQJKXPDQGQRLVH7LHDOOJURXQGVWRDFRPPRQSRLQW QRWFRQQHFWHGWRWKH
FKDVVLV&RQQHFWLRQWRWKHFKDVVLVLVDFFRPSOLVKHGDWWKHLQSXWDQGRXWSXWMDFNVRQO\7KH
IROORZLQJSRLQWVVKRXOGHDFKKDYHWKHLURZQGLUHFWZLUHUXQWRWKHFHQWUDOJURXQGLQJSRLQWRQHRI
RI $0
7KH5HDO0F7XEH,,
WKHXQJURXQGHGWHUPLQDOVRQ\RXUWHUPLQDOVWULS7KLVWHUPLQDOVKRXOGEHIDLUO\FORVHWRWKHWXEH
VRFNHWVRWKDWWKHUHVLVWRUVIURPWKHWXEHVRFNHWWRJURXQGZLOOUHDFKZLWKRXWKDYLQJH[FHVVLYH
OHQJWK
$OOVLJQDOOLQHVLHWKHOLQHVWRWKHLQSXWDQGRXWSXWMDFNVJDLQSRWHQWLRPHWHU59DQGWRWKH
VWRPSVZLWFKFRQWDFWVVKRXOGEHJRRGTXDOLW\VKLHOGHGFDEOH7KHVHUXQVDUHVKRZQRQWKH
VFKHPDWLFZLWKOLWWOHJURXQGULQJV5*LVDJRRGFKRLFHVKRXOGLWEHDYDLODEOHWR\RX,IQRW
XVHDQ\GHFHQWVKLHOGHGDXGLRFDEOH.HHSRWKHUFRPSRQHQWOHDGVDVVKRUWDVLVSUDFWLFDO
PRXQWLQJWKHFRPSRQHQWVDVFORVHWRWKHLUDVVRFLDWHGWXEHVRFNHWSLQVDVLVSUDFWLFDO7KHLQSXWWR
WKHILUVWVWDJHLVHVSHFLDOO\FULWLFDOZH
UHGHDOLQJZLWKDYHU\KLJKLQSXWLPSHGDQFHDQGORZVLJQDO
OHYHOVDQGKXPDQGQRLVHSLFNXSLVDUHDOFRQFHUQ
)LQDOO\ZLUHXSWKHUHVWRIWKHFRPSRQHQWVEHWZHHQWKHWXEHVRFNHWDQGWKHUHVWRIWKHFLUFXLW
XVLQJWKHWHUPLQDOVWULSWRSURYLGHVXSSRUWIRUFRPSRQHQWVVXFKDV5DQG5FRQQHFWWRWKH%
WHUPLQDO&&&DQG55JHWVFRQQHFWHGGLUHFWO\DFURVVWKHRXWSXWOHYHOSRW59$JDLQ
WHVWWKHSRZHUVXSSO\EHIRUHSOXJJLQJWKHWXEHLQWRWKHVRFNHW$WSLQVDQG\RXVKRXOGUHDG
DERXWYROWV'&UHODWLYHWRJURXQG%HWZHHQSLQVDQG\RXVKRXOGDJDLQUHDGYROWV
'&7KHUHDGLQJWRJURXQGZLOOEHLQGHWHUPLQDWHZLWKWKHWXEHRXWRIVRFNHW$WDOORWKHUSLQV
\RXUVKRXOGUHDGYROWVUHODWLYHWRJURXQG
,IDOOLVZHOOVRIDUXQSOXJWKHXQLWDQGSOXJWKHWXEHLQWRLWVVRFNHW&DUHIXOWKHILOWHUFDSDFLWRUV
ZLOOFDUU\DUHVLGXDOFKDUJHXQGHUWKHVHFRQGLWLRQV7RUHLWHUDWHVKRUWWKHPWRJURXQGYLDD.
UHVLVWRUIRUVHYHUDOVHFRQGVDQ\WLPH\RXZRUNRQWKHXQLWDIWHUKDYLQJSRZHUHGLWXS0RQLWRUWKH
%YROWDJHDWWKHSRVLWLYHHQGRI&DQGWXUQWKHXQLWRQ<RXVKRXOGVHHWKHKHDWHUVVWDUWWR
JORZ$IWHUDERXWVHFRQGVWKH%YROWDJHVKRXOGVDJDELWDVWKHWULRGHVVWDUWFRQGXFWLQJ7KH
%YROWDJHDWWKHSRVLWLYHHQGRI&VKRXOGGURSQRORZHUWKDQYROWV'&
5HDGWKHYROWDJHVRQWKHSLQVRIWKHWXEHDJDLQ,I\RXXVHGWKHFRPSRQHQWYDOXHVVXJJHVWHG
\RXUUHDGLQJVVKRXOGEHLQWKHYLFLQLW\RIWKHWDEOHEHORZ
RI $0
7KH5HDO0F7XEH,,
,IWKHSODWHYROWDJHVDUHH[FHVVLYHO\ORZRULIHLWKHURIWKHJULGVDUHSRVLWLYHZLWKUHVSHFWWR
JURXQGSRZHUGRZQULJKWDZD\DQGILQG\RXUSUREOHP6DPHJRHVLI\RXVHHEOXHIODVKHVLQWKH
WXEHRUVPHOODQ\WKLQJXQXVXDO%HVXUHWKDW\RXXVHGJRRGTXDOLW\P\ODURUVLPLODUFDSDFLWRUVIRU
&DQG&ZLWKDWOHDVWD9'&YROWDJHUDWLQJ
$VVXPLQJWKDWWKHYROWDJHVFKHFNRNSRZHURIIDJDLQDQGFRQQHFWWKHRXWSXWRIWKHSUHDPS
GLVWRUWLRQXQLWWR\RXUDPSOLILHUDQGWKHLQSXWWR\RXULQVWUXPHQW7XUQ*$,1DQG287387WR
PLQLPXPDQGSRZHUXS6ORZO\EULQJXSWKHFRQWUROVXQWLO\RXKHDUVLJQDO&RQJUDWXODWLRQV
<RX
UHRQ\RXURZQIURPKHUH
D8VLQJWKH5HDO0F7XEH,,
:KDWVRXQG\RXJHWIURP\RXUJXLWDURURWKHULQVWUXPHQWYLD7KH5HDO0F7XEHZLOOGHSHQGJUHDWO\
RQWKHVHWWLQJVRIWKHYDULRXVFRQWUROVVSHFLILFDOO\WKHYROXPHDQGWRQHFRQWUROVRQ\RXUD[HDQG
WKH*$,1FRQWURO7KH287387FRQWUROKDVOLWWOHRUQRHIIHFWRQWKHVRXQGDQGLVXVHGSULPDULO\WR
EDODQFHWKHYROXPHRIWKHVRXQGZLWKRUZLWKRXWWKHHIIHFWHQJDJHG
1RWHWKDWERWKVWDJHVDUHLQYHUWLQJDPSOLILHUVWKHRYHUDOOSKDVHRI\RXUVLJQDOZLOOWKHUHIRUHQRW
FKDQJH+RZHYHUKRZ\RXDGMXVW\RXUFRQWUROVZLOOGHWHUPLQHZKDWSRUWLRQRI\RXUVLJQDOJHWV
FOLSSHG7KHILUVWVWDJHZLOOWHQGWRFOLSPRUHRQQHJDWLYHKDOIF\FOHVDVWKHWXEHUHDFKHVFXWRII
UHPHPEHURXUGLVFXVVLRQHDUOLHUUHJDUGLQJFXWRIIYHUVXVVDWXUDWLRQ7KHVHFRQGVWDJHKRZHYHU
ZLOOWHQGWRFOLSPRUHRQSRVLWLYHKDOIF\FOHVVLQFHLWVHHVDQLQYHUWHGVLJQDODWLWVLQSXW%\
FDUHIXOO\EDODQFLQJ\RXULQVWUXPHQWFRQWUROVDQG*$,1YLUWXDOO\DQ\GLVWRUWLRQVRXQGIURPDPLOG
ZDUPIX]]\IHHOLQJVRXQGWRDKDUGPRQVWHUPHWDOVKUHGKHDGVRXQGULIHZLWKRGGKDUPRQLF
GLVWRUWLRQFDQEHDWWDLQHG
$FRPSUHVVRUEHIRUHWKH5HDO0F7XEHZLOOPDNHLWHDVLHUWRJHWFRQVLVWHQWVRXQGVEXWZLOODOVR
JUHDWO\DIIHFWWKHFKDQJHRIVRXQGZLWKYDU\LQJG\QDPLFV,I\RXKDYHPXOWLSOHHIIHFWVSOD\
DURXQGZLWKWKHYDULRXVFRPELQDWLRQV:KHUH\RXSODFH7KH5HDO0F7XEHLQ\RXUFKDLQRIHIIHFWV
ZLOOKDYHDORWWRGRZLWKWKHVRXQG\RXHQGXSZLWK
<RXPLJKWZDQWWRUHGXFHWKHYDOXHVRIFRXSOLQJFDSDFLWRUV&DQG&$V\RXFDQYHULI\XVLQJDQ
RVFLOORVFRSHWKHVHZLOOKDYHDFRQVLGHUDEOHHIIHFWRQWKHH[DFWQDWXUHRIWKHWUDQVLHQWVWKDWRFFXU
GXULQJFOLSSLQJGLVWRUWLRQ/RZHUYDOXHVZLOOJLYHDUHHGLHUTXDOLW\WKHKLJKHUYDOXHVDVVKRZQLQ
WKHVFKHPDWLFUHVXOWLQDIDWWHUVRXQG7KHFLUFXLWLVH[WUHPHO\IRUJLYLQJWDNHWKHRSSRUWXQLW\WR
H[SHULHQFHWKHIDVFLQDWLQJIUXVWUDWLQJIOH[LEOHDQGKLJKO\VXEMHFWLYHZRUOGRIWKHYDFXXPWXEH
DPSOLILHU
RI $0
7KH5HDO0F7XEH,,
3$576/,677+(5($/0F78%(,,
UHY
)UHG1DFKEDXU
3DUWVZLWK0RGHSDUWQXPEHUVDYDLODEOHIURP\RXUORFDO0RGHGLVWULEXWRU
' 6(0,&21'8&725',2'(6
1RUEHWWHUVLOLFRQ RUVXEVWLWXWH9$IXOOZDYH
'
UHFWLILHUV EULGJHPRGXOH
1RUEHWWHUVLOLFRQ RUVXEVWLWXWH9$IXOOZDYHEULGJH
'
UHFWLILHUV PRGXOH
, 1(213,/27/$03
, 9$&5HGQHRQSLORW 0RGH
- -$&.6
- SKRQHMDFNZVZLWFK 0RGH
- SKRQHMDFN 0RGH
5 5(6,67256
5 . XQOHVVQRWHG
5 RKP:
55 PHJRKP
5 .:
5 .
5 .:
5 .
5 .
5 RKP:
RI $0
7KH5HDO0F7XEH,,
59 327(17,20(7(56
5959
./RJWDSHU DYDLODEOHIURP5DGLR6KDFN
6: 6:,7&+(6
6367VXEPLQLWRJJOH
6: 0RGH$
SRZHU
'3'7RQRQ3%VZLWFK
6: 0RGHRU
E\SDVV
7 75$16)250(56
DVIURP0RGH3
77 3RZHU7UDQVIRUPHUV
HWF
0(&+$1,&$/3$576
6WHHORUDOXPLQXPHQFORVXUH
$&SRZHUFRUGDQGSOXJ0RGH
VWUDLQUHOLHIIRUSRZHUFRUG
SLQPLQLDWXUHFKDVVLVPRXQWWXEHVRFNHW
VXEFKDVVLVIRUWXEHDQGVRFNHW
SRWNQREVVHYHUDOW\SHVDYDLODEOHIURP0RGH
PRXQWLQJKDUGZDUHQXWVEROWVZDVKHUV
WHUPLQDOVWULSV
KRRNXSZLUH
VKLHOGHGFDEOH
FDEOHVWRLQVWUXPHQWDQGDPSOLILHU
RI $0
7KH5HDO0F7XEH,,
$33(1',;,7KHRULJLQDO5HDO0F7XEH6FKHPDWLF
$33(1',;,,$OWHUQDWH3RZHU6XSSO\
(QGRIDUWLFOH
RI $0