Download as pdf or txt
Download as pdf or txt
You are on page 1of 148

2QH

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



-)&ROIV/D)LOLDWLRQJpQpDORJLTXHGHWRXWHVOHV(FROHVJRWKLTXHV3DULV%DXGU\

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qJHRUWKH MR\IXOSURFHVVLRQRIDKLJKIHVWLYDOWKH\DOVRWKURQJWKHUHLQPDQ\RWKHUFLUFXPVWDQFHV3ROLWLFDO PHHWLQJV DUH KHOG WKHUH XQGHU WKH DHJLV RI WKH ELVKRS WKH SULFH RI JUDLQ DQG OLYHVWRFN LV GLVFXVVHGWKHUHWKHGUDSHUVIL[WKHSULFHRIWKHLUFORWKWKHUHSHRSOHKXUU\WKHUHWRVHHNFRPIRUW WRDVNIRUDGYLFHWREHJIRUSDUGRQ7KHUHLVVFDUFHO\DJXLOGZKLFKGRHVQRWXVHWKHFDWKHGUDO IRUWKHSDVVLQJRXWFHUHPRQ\RILWVQHZMRXUQH\PDQVFDUFHO\DJXLOGZKLFKGRHVQRWPHHWWKHUH RQFHD\HDUXQGHUWKHSURWHFWLRQRILWVSDWURQVDLQW 'XULQJ WKH JUHDW PHGLHYDO SHULRG LW ZDV WKH VFHQH RI RWKHU FHUHPRQLHV YHU\ SRSXODU ZLWK WKH PDVVHV7KHUHZDVWKH)HDVWRI)RROVRURIWKH:LVHSURFHVVLRQDOKHUPHWLFIDLUZKLFKXVHGWR VHWRXWIURPWKHFKXUFKZLWKLWVSRSHLWVGLJQLWDULHVLWVHQWKXVLDVWVDQGLWVFURZGVWKHFRPPRQ SHRSOH RI WKH 0LGGOH $JHV QRLV\ IUROLFVRPH MRFXODU EXUVWLQJ ZLWK YLWDOLW\ HQWKXVLDVP DQG VSLULW DQG VSUHDG WKURXJK WKH WRZQ :KDW D FRPHG\ LW DOO ZDV ZLWK DQ LJQRUDQW FOHUJ\ WKXV VXEMHFWHGWRWKHDXWKRULW\RIWKHGLVJXLVHG6FLHQFHDQGFUXVKHGXQGHUWKHZHLJKWRIXQGHQLDEOH VXSHULRULW\$K7KH)HDVWRI)RROVZLWKLWVWULXPSKDOFKDULRWRI%DFFKXVGUDZQE\DPDOHDQG D IHPDOH FHQWDXU QDNHG DV WKH JRG KLPVHOI DQG DFFRPSDQLHG E\ WKH JUHDW 3DQ DQ REVFHQH FDUQLYDOWDNLQJSRVVHVVLRQRIDVDFUHGEXLOGLQJQ\PSKVDQGQDLDGVHPHUJLQJ

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pTXHQDWLRQDOH )LQDOO\WKHUHZHUHVRPHEL]DUUHHYHQWVLQZKLFKDKHUPHWLFPHDQLQJRIWHQDYHU\SUHFLVHRQH ZDVGLVFHUQLEOH7KHVHZHUHKHOGHYHU\\HDUZLWKWKH*RWKLFFKXUFKDVWKHLUWKHDWUH([DPSOHV

7KLVGD\LVWKHFHOHEUDWHGGD\RIFHOHEUDWHGGD\V 7KLVGD\LVWKHIHDVWGD\RIIHDVWGD\V
 

*-:LWNRZVNL/$UWSURIDQHj,(JOLVH(WUDQJHU3DULV6FKHPLWS

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

7:2
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

 7RSZLWKWKHRXWOLQHRID7DXRU&URVV,QFDEDOLVWLFODQJXDJHVDERWLVWKHHTXLYDOHQWRIFDERWRU
FKDERWWKHFKDWERWWp 3XVVLQ%RRWV RIWKH7DOHVRI0RWKHU*RRVH7KH(SLSKDQ\FDNHVRPHWLPHV FRQWDLQVD VDERWLQVWHDGRIDEHDQ

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

1RHOGX)DLO3URSRVUXVWLTXHVEDOLYHUQHULHVFRQWHVHWGLVFRXUVG(XWUDSHO FK; 3DULV *RVVHOLQ




,QWKHFDWKHGUDOVHYHU\WKLQJZDVJLOGHGDQGSDLQWHGLQYLYLGFRORXUV$VSURRIRIWKLVZHKDYH WKH ZRUGV RI 0DUW\ULXV WKH ILIWHHQWK FHQWXU\ $UPHQLDQ ELVKRS DQG WUDYHOOHU 7KLV DXWKRU VD\V WKDWWKHSRUFKRI1RWUH'DPHRI3DULVZDVDVUHVSOHQGHQWDVWKHJDWHVRI3DUDGLVH3XUSOHURVH D]XUHVLOYHUDQGJROGZHUHWREHVHHQWKHUH7UDFHVRIJLOGLQJPD\VWLOOEHVHHQDWWKHWRSRIWKH W\PSDQXPRIWKHJUHDWSRUWDO7KHRQHDWWKHFKXUFKRI6DLQW*HUPDLQ,$X[HUURLVKDVSUHVHUYHG LWVSDLQWLQJDQGLWVEOXHYDXOWVWDUUHGZLWKJROG


 HDFK SKLORVRSKHU ZRXOG VKRZ WKH UHVXOW RI KLV ODERXUV DQG ZRUN RXW WKH QH[W VHTXHQFH RI KLV UHVHDUFKHV ,WZDVWKHUHWKDWWKH\DVVHVVHGSUREDELOLWLHVDQGGLVFXVVHGSRVVLELOLWLHVDQGVWXGLHGRQWKHVSRW WKHDOOHJRU\RIWKH*UHDW%RRN1RWWKHOHDVWDQLPDWHGSDUWRIWKHVHJDWKHULQJVZDVWKHDEVWUXVH H[SODQDWLRQRIWKHP\VWHULRXVV\PEROVDOODURXQGWKHP ,QWKHVWHSVRI*RELQHDXGH0RQWOXLVDQW&DPEULHODQGDOOWKHUHVWZHVKDOOXQGHUWDNHWKHSLRXV SLOJULPDJHVSHDNWRWKHVWRQHVDQGTXHVWLRQWKHP$ODV,WLVDOPRVWWRRODWH7KHYDQGDOLVPRI 6RXIIORW KDV WR D ODUJH H[WHQW GHVWUR\HG ZKDW WKH 6RXIIOHXUV FRXOG DGPLUH LQ WKH VL[WHHQWK FHQWXU\ $QG LI DUW RZHV VRPH JUDWLWXGH WR WKRVH HPLQHQW DUFKLWHFWV 7RXVVDLQW *HIIUR\ 'HFKDXPH %RHVZLOOZDOG 9LROOHWOH'XF DQG /DVVXV ZKR UHVWRUHG WKH EDVLOLFD VR RGLRXVO\ SURIDQHG6FLHQFHZLOOQHYHUDJDLQILQGZKDWLWKDV/RVW +RZHYHU WKDW PD\ EH DQG LQ VSLWH RI WKHVH UHJUHWWDEOH PXWLODWLRQV WKH PRWLIV VWLOO H[WDQW DUH VXIILFLHQWO\ QXPHURXV WR UHSD\ WKH WLPH DQG WURXEOH RI D YLVLW ,QGHHG , VKDOO FRQVLGHU P\VHOI VDWLVILHGDQGDPSO\UHZDUGHGLI,KDYHEHHQDEOHWRDZDNHQWKHFXULRVLW\RIWKHUHDGHUWRKROG WKHDWWHQWLRQRIWKHVKUHZGREVHUYHUDQGWRVKRZWRORYHUVRIWKHRFFXOWWKDWLWLVQRWLPSRVVLEOH HYHQ QRZ WR UHGLVFRYHU WKH PHDQLQJ RI WKH VHFUHWV KLGGHQ XQGHU WKH SHWULILHG H[WHULRU RI WKLV ZRQGURXVERRNRIPDJLF

7KUHH
)LUVWRIDOOLWLVQHFHVVDU\IRUPHWRVD\DZRUGDERXWWKHWHUP*RWKLFDVDSSOLHGWR)UHQFKDUW ZKLFKLPSRVHGLWVUXOHVRQDOOWKHSURGXFWLRQVRIWKH0LGGOH$JHVDQGZKRVHLQIOXHQFHH[WHQGV IURPWKHWZHOIWKWRWKHILIWHHQWKFHQWXU\ 6RPHKDYHFODLPHGZURQJO\WKDWLWFDPHIURPWKH*RWKVWKHDQFLHQW*HUPDQLFSHRSOH2WKHUV DOOHJHGWKDWWKHZRUGVXJJHVWLQJVRPHWKLQJEDUEDURXVZDVEHVWRZHGLQGHULVLRQRQDIRUPRI DUW

6RXIIOHXUV SXIIHUVYHUQDFXODUZRUGIRUDOFKHPLVWVIURPWKHQHHGWRSXIIDWWKHLUIXUQDFHV WUDQVODWRUVQRWH




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oDO HWFDQGLQWKHODQJXDJHRIWKH*\SVLHV 0\WKRORJ\ ZRXOG KDYH LW WKDW WKH IDPRXV VRRWKVD\HU 7LUHVLDV  KDG SHUIHFW NQRZOHGJH RI WKH /DQJXDJHRIWKH%LUGVZKLFK0LQHUYDJRGGHVVRI:LVGRPUHYHDOHGWRKLP+HVKDUHGLWWKH\ VD\ZLWK7KDOHVRI0LOHWXV0HODPSXVDQG$SSRORQLXVRI7\DQD OHJHQGDU\SHUVRQDJHVZKRVH QDPHVLQWKHVFLHQFHZHDUHFRQVLGHULQJULQJHORTXHQWO\HQRXJKWRUHTXLUHQRDQDO\VLVIURPPH

 7KH/LIHRI*DUJDQWXDDQG3DQWDJUXHOE\)UDQTRLV5DEHODLVLVDQHVRWHULFZRUNDQRYHOLQFDQW

7KHJRRGFXUpRI0HXGRQUHYHDOVKLPVHOILQLWDVDJUHDWLQLWLDWHDVZHOODVDILUVWFODVVFDEDOLVW

 ,WLVVDLGWKDW7LUHVLDVZDVGHSULYHGRIKLVVLJKWIRUUHYHDOLQJWRPRUWDOVWKHVHFUHWVRI2O\PSXV

+RZHYHU KH OLYHG IRU VHYHQ HLJKW RU QLQH DJHV RI PDQ DQG LV VXSSRVHG WR KDYH EHHQ VXFFHVVLYHO\PDQDQG:RPDQ

3KLORVRSKHUZKRVHOLIHFUDPPHGIXOORIOHJHQGVPLUDFOHVDQGSURGLJLRXVGHHGVVHHPVWREH

H[WUHPHO\ K\SRWKHWLFDO 7KH QDPH RI WKLV VHPLIDEXORXV SHUVRQDJH VHHPV WR PH WR EH MXVW D P\WKRKHUPHWLFLPDJHRIWKHFRPSRVWRUSKLORVRSKLFUHELVUHDOL]HGE\WKHXQLRQRIEURWKHUDQG VLVWHU RI *DEULWLXV DQG %H\D RI $SROOR DQG 'LDQD ,Q WKDW FDVH WKH PDUYHOV UHFRXQWHG E\ 3KLORVWUDWXVEHLQJFKHPLFDOLQFKDUDFWHUVKRXOGQRWVXUSULVHXV



)285
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

 D VSHFLDO HPEOHP RI &KULVWLDQLW\ DV WKH $EEp $QVDXOW  KDV PRUH WKDQ DPSO\ VKRZQ :H VD\ IXUWKHUWKDWWKHJURXQGSODQRIWKHJUHDWUHOLJLRXVEXLOGLQJVRIWKH0LGGOH$JHVE\WKHDGGLWLRQ RI D VHPLFLUFXODU RU HOOLSWLFDO DSVH MRLQHG WR WKH FKRLU DVVXPHV WKH VKDSH RI WKH (J\SWLDQ KLHUDWLF VLJQ RI WKH FUX[ DQVDWD WKH DQNK ZKLFK VLJQLILHV XQLYHUVDO OLIH KLGGHQ LQ PDWWHU $Q H[DPSOHRIWKLVPD\EHVHHQDWWKHPXVHXPRI6W*HUPDLQHQ/D\HRQD&KULVWLDQVDUFRSKDJXV IURPWKHFU\SWVRI6W+RQRUp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

 

7KH$EEH$QVDXOW/DFURL[DYDQW-HVXV&KULVW3DULV95RWDX[

 RI/XFLIHU^WKHPRUQLQJVWDU ZDVWKHV\PERORIRXUFRUQHUVWRQHWKHKHDGVWRQHRIWKHFRUQHU 7KHVWRQHZKLFKWKHEXLOGHUVUHMHFWHGZULWHV$P\UDXW KDVEHHQPDGHWKHKHDGVWRQHRIWKH FRUQHURQZKLFKUHVWVWKHZKROHVWUXFWXUHRIWKHEXLOGLQJEXWZKLFKLVDVWXPEOLQJEORFNDQG VWRQH RIVKDPHDJDLQVW ZKLFK WKH\GDVKWKHPVHOYHV WR WKHLUUXLQ$V IRU WKHGUHVVLQJRI WKLV FRUQHUVWRQH,PHDQLWVSUHSDUDWLRQLWFDQEHVHHQWUDQVODWHGLQDYHU\ILQHEDVUHOLHIRIWKHWLPH VFXOSWXUHGRQWKHRXWVLGHRIWKHEXLOGLQJRQDQDEVLGDOFKDSHOIDFLQJWKH5XHGX&ORLWUH1RWUH 'DPH

),9(
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

0  $P\UDXW 3DUDSKUDVH GH OD 3UHPLqUH (SvWUH GH VDLQW 3LHUUH FK ,, Y   6DXUQXU -HDQ /HVQLHUS
 

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xLV SURQRXQFHGJQ.!.$# WKHVSLGHU FDQWKXVEHUHDGDUDKQHDUDKQLDUDKDJQH,VQRWRXUVRXOWKH VSLGHUZKLFKZHDYHVRXURZQERG\"%XWWKLVZRUGDSSHDUVLQRWKHUIRUPV7KHYHUE.!&PHDQV WRWDNHWRVHL]HWRGUDZWRDWWUDFWZKHQFH.!WKDWZKLFKWDNHVVHL]HVDWWUDFWV7KXV.! LV WKH ORGHVWRQH WKDW YLUWXH VKXW XS LQ WKH ERG\ ZKLFK WKH :LVH FDOO WKHLU 0DJQHVLD /HW XV FRQWLQXH,Q3URYHQoDOLURQLVFDOOHGDUDQDQGLUDQDFFRUGLQJWRWKHGLIIHUHQWGLDOHFWV7KLVLVWKH PDVRQLF+LUDPWKHGLYLQHUDPWKHDUFKLWHFWRIWKH7HPSOHRI6RORPRQ7KHIpLEUHV FDOOHGWKH

   

/D*UDQGH(QF\FORSpGLH$UW/DE\ULQWKV7[[OS

7UDQVODWRUV QRWH 7KH IpOLEUHV ZHUH PHPEHUV RI D VRFLHW\ RI ZULWHUV IRXQGHG LQ  WR SUHVHUYHWKH3URYHQoDOODQJXDJH

 6SLGHUDUDJQRDQGLUDJQRDLUDJQR7KH3LFDUGYHUVLRQLVDUHJQL&RPSDUHDOOWKDWZLWKWKH*UHHN /! " ZKLFK PD\ PHDQ HLWKHU LURQ RU ORGHVWRQH 1RU LV WKLV DOO 7KH YHUE!#& PHDQV WKH ULVLQJRIDVWDUIURPRXWRIWKHVHDZKHQ.!#. $U\DQ WKHVWDUZKLFKULVHVRXWRIWKHVHDRU DULDQH LV WKXV WKH 2ULHQW E\ WKH SHUPXWDWLRQ RI YRZHOV )XUWKHU!#& KDV DOVR WKH VHQVH WR DWWUDFWWKXV.!#.LVDOVRWKHORGHVWRQH,IZHQRZFRPSDUH/! "ZKLFKKDVJLYHQWKH/DWLQ VLGXV VLGHULV D VWDU ZH VKDOO UHFRJQL]H RXU 3URYHQoDO DUDQ LUDQ DLUDQWKH *UHHN .!#. WKH ULVLQJVXQ $ULDGQHWKHP\VWLFVSLGHUKDVHVFDSHGIURP$PLHQVOHDYLQJRQO\WKHWUDFHRIKHUZHERQWKH SDYLQJ VWRQHV RI WKH FKRLU /HW XV UHFDOO LQ SDVVLQJ WKDW WKH PRVW FHOHEUDWHG RI WKH DQFLHQW ODE\ULQWKVWKDWRI&QRVVRVLQ&UHWHZKLFKZDVGLVFRYHUHGLQE\'U(YDQVRI2[IRUGZDV FDOOHG$EVROXP:HZRXOGSRLQWRXWWKDWWKLVWHUPLVFORVHWRWKH$EVROXWHZKLFKLVWKHQDPHE\ ZKLFKWKHDQFLHQWDOFKHPLVWVGHVLJQDWHGWKHSKLORVRSKHUVVWRQH

6,;
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oDGH RIWKHOHIWWUDQVHSW7KHVHFRQGRQHEOD]HVLQWKHPLGGD\VXQWKLVLVWKHVRXWKHUQURVHRSHQDW WKHHQGRIWKHULJKWWUDQVHSW7KHODVWZLQGRZLVOLWE\WKHFRORXUHGUD\VRIWKHVHWWLQJVXQ7KLVLV WKHJUHDWURVHWKHSRUFKZLQGRZZKLFKVXUSDVVHVLWVVLGHVLVWHUVLQVL]HDQGEULOOLDQFH7KXVRQ WKHIDFDGHRIDJRWKLFFDWKHGUDOWKH

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qJQH HWF 7KH SUHSRQGHUDQFH RI WKH ILHU\ V\PERO LQ WKH DUFKLWHFWXUHRIWKHIRXUWHHQWKDQGILIWHHQWKFHQWXULHVZKLFKQHDWO\FKDUDFWHUL]HVWKHODVWSHULRG RIPHGLHYDODUWKDVJLYHQULVHWRWKHQDPHIODPER\DQW*RWKLFIRUWKHVW\OHRIWKLVSHULRG

'H1X\VHPHQW3RqPHSKLORVRSKLFGHOD9pULWpGHOD3KLVLTXH0LQHUDOOHLQ7UDLWWH]GH /+DUPRQLHHW&RQVWLWXWLRQJHQHUDOOHGX9UD\6HO3DULV3pULHUHW%XLVDUGDQGS 


 

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

6(9(1
9DUURLQKLV$QWLTXLWDWHVUHUXPKXPDQRUXPUHFDOOVWKHOHJHQGRI$HQHDVVDYLQJKLVIDWKHUDQG KLVKRXVHKROGJRGVIURPWKH IODPHVRI7UR\DQGDIWHUORQJZDQGHULQJVDUULYLQJDWWKHILHOGVRI /DXUHQWXPWKHJRDORIKLVMRXUQH\+HJLYHVWKHIROORZLQJH[SODQDWLRQ ([TXRGH7URMDHVWHJUHVVXV$HQHDV9HQHULVHXPSHUGLHP

&RQYDOODULD SRO\JRQDWD FRPPRQO\ FDOOHG 6RORPRQV 6HDO RZHV LWV QDPH WR LWV VWHP WKH VHFWLRQRIZKLFKLVVWDUUHGOLNHWKHPDJLFVLJQDWWULEXWHGWRWKH.LQJRIWKH,VUDHOLWHVWKHVRQRI 'DYLG
   

/DXUHQWH /DXUHQWLXP LVFDEDOLVWLFDOO\ORUHQWW JUDIWHGJROG 

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

9DUURLQ6HUYLXV$HQHLGENS

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

$SRFU\SKHVENS

-XOLXV$IULFDQXVLQ3XUUJUHFTXHEN;SDQG (SLVWOHWRWKH(SKHVLDQVFK;,; +XJLQXV%%DUPD/D5qJQHGH6DWXUQHFKDQJHHQ6LqFOHGRU3DULV'HULHX

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

&KDOFLGLXV&RPPLQ7LPDHXP3ODWRQLVFLQWKH)UDJ3KLORVRSKRUXUQJUDHFRUXPRI

'LGRWENS&KDOFLGLXVLVREYLRXVO\VSHDNLQJWRDQLQLWLDWH

'LRGRPVRI7DUVXV2Q'HVWLQ\LQ3KRWLXVFRG3DWUJUHTXHEN&,,,S

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

$%RQQHWW\'RFXPHQWVKLVWRULTXHVVXUOD5HOLJLRQGHV5RPDLQVENS

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pOLFLWpZHUHO\LQJLQDEHGFRPSOHWHO\QDNHGLQDFFRUGDQFHZLWKWKHFXVWRPZKLFKODVWHGXQWLO WKH PLGGOH RI WKH VL[WHHQWK FHQWXU\ 7KH FRQFHSWLRQ ZDV VKRZQ E\ D VWDU ZKLFK VKRQH RQ WKH FRYHUOHW LQ FRQWDFW ZLWK WKH EHOO\ RI WKH ZRPDQ 7KH ERUGHUV RI WKLV ZLQGRZ ZKLFK ZDV DOUHDG\VWUDQJHHQRXJKRQDFFRXQWRILWVPDLQPRWLIZHUHRUQDPHQWHGZLWKPHGDOOLRQVRQZKLFK RQHFRXOGVHHQRWZLWKRXWVXUSULVHWKHILJXUHVRI0DUV-XSLWHU9HQXVHWFDQGVRWKDWWKHUH VKRXOGEHQRGRXEWDERXWWKHLULGHQWLW\WKHILJXUHRIHDFKGHLW\ZDVDFFRPSDQLHGE\LWVQDPH

(,*+7
-XVW DV WKH KXPDQ VRXO KDV LWV KLGGHQ UHFHVVHV VR WKH FDWKHGUDO KDV LWV VHFUHW SDVVDJHV 7KH\ H[WHQG XQGHUJURXQG EHORZ WKH FKXUFK DQG WDNHQ DOO WRJHWKHU WKH\ IRUP WKH FU\SW IURP WKH *UHHN !#2)"KLGGHQ  ,QWKLVORZGDPSFROGSODFHWKHREVHUYHUH[SHULHQFHVDVWUDQJH

 

*-:LWNRZVNL/$UWSURIDQHUL(JOLVH)UDQFH3DULV6FKHPLWS

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

&K%LJDUQH&RQVLGpUDWLRQVVXUOH&XOWHGOVLVFKH]OHV(GXHQV%HDXQH

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

 7R,VLVRUWRWKH9LUJLQIURPZKRP WKHVRQZLOOEHERUQ

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p

  /D

JUDQGH(QF\FORSpGLHEN;9,,,S

 $OORWZKRGHVFULEHVWKLVVWDWXHWKLQNVLWZDVIRUPHUO\WREHIRXQGLQWKH6W1LFKRODV&KDSHO IRXQGHGLQE\*XLOODXPHGH+DPHV 7KHFKXUFKRI*XpRGHWDW4XLPSHUVWLOOFDOOHG1RWUH'DPHGHOD&LWp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p%UDQW{PH6KHFRXOG QRWVKRZDQ\WKLQJEXWWKHRXWOLQH+HUKHDGZDVFRYHUHGZLWKDYHLO7ZRGULHGXSEUHDVWVKXQJ GRZQ IURP KHUFKHVW OLNH WKRVH RI WKH 'LDQDVRI (SKHVXV 7KH VNLQ ZDV FRORXUHG UHGDQG WKH GUDSHU\FRYHULQJWKHILJXUHZDVEODFN6LPLODUVWDWXHVZHUHWREHIRXQGDW6W*HUPDLQGHV3UpV DQG6W(WLHQQHLQ/\RQV$WDQ\UDWHZKDWUHPDLQVIRUXVLVWKHIDFWWKDWWKHFXOWRI,VLV

 &DPLOOH)ODPPDULRQ/$UPRVSKqUH3DULV+DFKHWWHS  &I /$UWSURIDQHj(JOLVH(WUDQJHURSFLW S

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

 IURPZKLFKKDQJVDYHLO6RPHWLPHVVKHLVUHSUHVHQWHGKROGLQJDNH\DQGVHHPLQJWRGUDZEDFN KHUYHLO,VLV&HUHVDQG&\EHOHDUHWKUHHKHDGVXQGHUWKHVDPHYHLO

1LQH
+DYLQJGLVSRVHGRIWKHVHSUHOLPLQDULHVZHPXVWQRZXQGHUWDNHDKHUPHWLFVWXG\RIWKHFDWKHGUDO DQGLQRUGHUWROLPLWRXULQYHVWLJDWLRQV,ZLOOWDNHDVDW\SHWKH&KULVWLDQWHPSOHRIWKH)UHQFK FDSLWDO1RWUH'DPHRI3DULV 0\WDVNLVFHUWDLQO\DGLIILFXOWRQH:HQRORQJHUOLYHLQWKHWLPHVRI0HVVLUH%HUQDUG&RXQWRI 7Up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pGp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p/HERHXIVDZWKHIDFHRI&KULVWRWKHUV6W*HQHYLpYHSDWURQVDLQWRI3DULV

$PpGpHGH3RQWKLHX8JHQGHVGX9LHX[3DULV3DULV%DFKHOLQ

'HVIORUHQQHS

(QJHQGHUHGE\WKHVXQRUE\JROG ,WLVWKHKHDGVWRQHZKLFK,KDYHDOUHDG\PHQWLRQHG 7KHEXVWVRI7HUPLQXVZHUHEXVWVRI+HUPHV 0HUFXU\ 

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pTXH1DWLRQDOHDUHH[HFXWHGLQVLPSOH RXWOLQHLQELVWUH7KHROGHVWGDWHVIURP

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

3DULV








7KH&DWKHGUDORI3DULVOLNHPRVW)UHQFKFDWKHGUDOVLVGHGLFDWHGWRWKH%OHVVHG9LUJLQ0DU\RU WKH9LUJLQ0RWKHU7KHFRPPRQSHRSOHRI)UDQFHFDOOWKHVHFKXUFKHV1RWUH'DPHV,Q6LFLO\ WKH\ KDYH WKH HYHQ PRUH H[SUHVVLYH QDPH RI WKH 0DWULFHV 7KXV WKHUH DUH PDQ\ WHPSOHV GHGLFDWHGWRWKH0RWKHU /DWPXWHUPDWULV WRWKH0DWURQDLQWKHSULPLWLYHVHQVHDZRUGZKLFK KDV EHHQ FRUUXSWHG LQWR 0DGRQQD ,WDO PD GRQQD  P\ /DG\ DQG E\ H[WHQVLRQ 2XU /DG\ 1RWUH'DPH  /HWXVSDVVWKHUDLOLQJRIWKHSRUFKDQGEHJLQRXUVWXG\RIWKHIDoDGHZLWKWKHJUHDWSRUWDOFDOOHG WKH&HQWUDO3RUFKRU3RUFKRI-XGJPHQW

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

2HXYUHVGH1LFRODV*URVSDUP\HW1LFRODV9DORLV0VV%LEOLRWKGH/$UVHQDOQR  6$) S




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

 

(WWHLOD/H'HQLHUGX3DXYUHLQWKH6HSWQXDQFHVGHORHXYUHSKLORVRSKLTXH  S

7KLVLVWKHWLWOHRIWKHIDPRXVDOFKHPLFDOPDQXVFULSWVRI$JULFRODDQG7LFLQHQVLV&IOLEUDULHV RI5HQQHV  RI%RUGHDX[  RI/\RQV  RI&DPEUDL  

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

7KH 3KU\JLDQ FDS ZKLFK ZDV ZRUQ E\ WKH VDQVFXORWWHV DQG DFWHG DV D VRUW RI SURWHFWLYH WDOLVPDQLQWKHPLGVWRIWKHUHYROXWLRQDU\VODXJKWHUZDVDGLVWLQFWLYHVLJQRIWKH,QLWLDWHV,QWKH DQDO\VLV ZKLFK KH PDGH RI D ZRUN RI /RPEDUG GH /DQJUHV  HQWLWOHG +LVWRLUH GHV -DFRELQV GHSXLVMXVTXj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


7KHEDVHPHQWRIWKHIDo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pYLVDQGHVFULEHV LQWKHODVW3DUDEOHRIKLVERRNRQOD3KLORVRSKLHQDWXUHOOHGHV0HWDX[

&I-0DQJLQGH5LFKHERXUJ%LEOLRWKpTXHGHV3KLORVRSKHV&KLPLTXHV3DULVEN WUHDWLVH9,,


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

&I 1RHO 'LFWLRQQDLUH GH OD )DEOH 3DULV OH 1RUPDQW  $]RWK RU 0R\HQ GH IDLUH ,2U FDFKWGHV3KLORVESKHVE\%DVLO9DOHQWLQH3DULV3LHUUH0RHWS
  &I1RHO'LFWLRQQDLUHGHOD)DEOH3DULV OH1RUPDQW   $]RWKRU0R\HQGHIDLUH,2UFDFKWGHV3KLORVySKHV E\%DVLO9DOHQWLQH3DULV3LHUUH0RHWS


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



*-:LWNRZVNL/$UWSURIDQHD(JOLVH(WUDQJHUS

:KLOH WKH EORRG IORZV IURP WKH EOHVVHG ZRXQG RI &KULVW DQG WKH KRO\ 9LUJLQ SUHVVHV KHU YLUJLQDOEUHDVWWKHPLONDQGWKHEORRGVSXUWRXWDQGDUHPL[HGDQGEHFRPHWKH)RXQWDLQRI/LIH DQGWKH6SULQJRI:HOOEHLQJ
   

5HFXHLOGH6HSW)LJXUHVSHLQWHV%LEOGHO$UVHQDOQR 6$) 

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

 

O&I7ULVPRVLQ/D7R\VRQG2U3DULV&K6HYHVWUHS

 )LQDOO\ OHWPH DGGWKDW WKH HVRWHULFWUDGLWLRQ RIWKH )RXQWDLQRI /LIHRUWKH)RXQWDLQRI <RXWK PD\EHIRXQGLQPDWHULDOIRUPLQWKHVDFUHG:HOOV DVVRFLDWHGZLWKPRVWJRWKLFFKXUFKHVLQWKH 0LGGOH$JHV7KHZDWHUGUDZQIURPWKHPZDVXVXDOO\WKRXJKWWRKDYHFXUDWLYHYDOXHDQGZDV XVHG LQ WKH WUHDWPHQW RI FHUWDLQ LOOQHVVHV  $EERQ LQ KLV SRHP RQ WKH 6LHJH RI 3DULV E\ WKH 1RUPDQVUHSRUWVYDULRXVLQFLGHQWVDWWHVWLQJWRWKHPDUYHOORXVSURSHUWLHVRIWKHZDWHUIURPWKH ZHOO RI 6W *HUPDLQGHV3Uq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

   

/H%UHWRQ&OHIVGHOD3KLORVRSKLH6SDJ\ULTXH3DULV-RPEHUWS /D1DWXUHGGpFRXYHUWE\/H&KHYDOLHU,QFRQQX$L[

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

   

/D&OHIGX&DELQHWKHUPHWLTXH(LJKWHHQWKFHQWXU\0VV$QRQ 7KHDXWKRUPHDQV5D\PRQG/XOO\ 'RFWRU,OOXPLQDWXV 

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

7KHQDPH NH\LVJLYHQWRHYHU\UDGLFDO LHLUUHGXFLEOH DOFKHPLFDOVROXWLRQDQGWKLVWHUPLV VRPHWLPHVH[WHQGHGWRWKH0HQVWUXDRUVROYHQWVZKLFKFDQEULQJLWDERXW


   

/H)LOHWGGULDGQH3DULVG+RXU\S

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

:LWKWKHDGGLWLRQRIDFRPPHQWDU\E\/LPRMRQGH6W'LGLHULQWKH7ULRPSKHKHUPWWLTXH RU WKH3LHUUHSKLORVRSKDOHYLFWRULHXVH$PVWHUGDP:HLWVWHQDQG'HVERUGHV


 

7KLVUDUHZRUNKDVEHHQUHHGLWHGE\$WODQWLV DQGLQFOXGHVWKHV\PEROLFDOIURQWLVSLHFHDVZHOO DVWKHH[SODQDWLRQRILWZKLFKDUHRIWHQRPLWWHGLQWKHROGFRSLHV

 WKHLPSHULVKDEOH ILHU\UD\LPSULVRQHGDWWKHERWWRPRIWKHGDUNIRUPOHVVDQGIULJLGVXEVWDQFH +HUH,WRXFKRQWKHJUHDWHVWVHFUHWRIWKH:RUN5HPHPEHULQJDODVWKDW,P\VHOIZDVKHOGXSE\ WKLVGLIILFXOW\IRUPRUHWKDQWZHQW\\HDUV,ZRXOGJODGO\FXWWKLV*RUGLDQNQRWIRUWKHEHQHILWRI WKRVHDVSLULQJWRRXU6FLHQFHZHUH,DOORZHGWRSURIDQHDP\VWHU\ZKRVHUHYHODWLRQUHVWVZLWK WKH )DWKHU RI /LJKWV 7R P\ JUHDW UHJUHW , FDQ GR QR PRUH WKDQ SRLQW RXW WKH GDQJHU DQG LQ FRPSDQ\ ZLWK WKH PRVW HPLQHQW SKLORVRSKHUV DGYLVH \RX WR UHDG DWWHQWLYHO\ $UWHSKLXV  3RQWDQXVDQGWKHOLWWOHZRUNHQWLWOHG(SLVWRODGH,JQH3KLORVRSKRUXP7KHUH\RXZLOOILQG YDOXDEOH LQGLFDWLRQV RI WKH QDWXUH DQG FKDUDFWHULVWLFV RI WKLV ZDWHU\ ILUH RU ILHU\ ZDWHU 7KHVH WHDFKLQJVFDQEHFRPSOHWHGE\WKHWZRIROORZLQJWH[WV 7KH DQRQ\PRXV DXWKRU RI WKH 3UWFHSWHV GX 3q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

     

/H6HFUHW/LYUHG$UWHSKLXVLQ7URLV7UDLWH]GHOD3KLORVRSKLHQDWXUHOOH3DULV0DUHWWH 3RQWDQXV'H/DSLGH3KLORVRSKLFR)UDQNIXUW 066RIWKH%LEOLRWKpTXHQDWLRQDOH

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

 

)UpGpULF3RUWDO'HV&RXOHXUV6\PEROLTXHV3DULV7UHXWWHOHW:LLUW]S

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

   

&I/H'HQLHUGX3DXYUHRU/D3HUIHFWLRQGHV0NWDX[3DULV DERXW S 7KLVSLFWXUHLVVDLGWRKDYHEHHQSDLQWHGWRZDUGVWKHPLGGOHRIWKHVHYHQWHHQWKFHQWXU\

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

- 7ROOLXV /H &KHPLQ GX &LHO &K\PLTXH 7UDQV RI 0DQXGXFWLR DG &RHOXP &KHPLFXP $PVWHODHGDPL-DQVV:DHVEHUJLRV
 

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

/HQJOHW'XIUHVQR\+LVWRLUHGHOD3KLORVRSKLH+HUPHWLTXH/(QWUHHDX3DODLV)HUPHGX 5R\ENS3DULV&RXVWHOLHU
 

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

7KLV VL[VWRUH\ KRXVH EXLOW RI GUHVVHG VWRQH LV VLWXDWHG LQ WKH VHYHQWHHQWK GLVWULFW DW WKH FRUQHURIWKH%RXOHYDUG3pUHLUHDQGWKH5XHGH0RQEHO6LPLODUO\DW7RXVVRQQHDU0DOHVKHUEHV 6HLQHHW2LVH DQROGHLJKWHHQWKFHQWXU\KRXVHRIJRRGDSSHDUDQFHKDVHQJUDYHGRQLWVIDoDGH LQOHWWHULQJRIWKHSHULRGWKHIROORZLQJLQVFULSWLRQ
 

%\DODERXUHU ,ZDVEXLOW 'LVLQWHUHVWHGDQG]HDORXV +HFDOOHGPH3,(55(%(//( WKHEHDXWLIXOVWRQH ,QWKH\HDU $OFKHP\ZDVVWLOOFDOOHGFHOHVWLDODJULFXOWXUHDQGLWV$GHSWVZHUHFDOOHG/DERXUHUV

 7KHQLQWKVXEMHFWJLYHVXVWKHRSSRUWXQLW\RIOHDUQLQJDJDLQWKHVHFUHWRIPDNLQJWKH XQLYHUVDO VROYHQW,QLWDZRPDQVKRZVDOOHJRULFDOO\WKHPDWHULDOVQHFHVVDU\IRUWKHFRQVWUXFWLRQRIWKH KHUPHWLFYHVVHO6KHKROGVXSDVPDOOSLHFHRIZRRGORRNLQJUDWKHUOLNHWKHVWDYHRIDEDUUHOWKH QDWXUH RI ZKLFK LV UHYHDOHG E\ WKH RDN EUDQFK ERUQH RQ WKH VKLHOG +HUH DJDLQ ZH ILQG WKH P\VWHULRXV VSULQJ ZKLFK LV VFXOSWXUHG RQ WKH SLHU RI WKH SRUFK EXW WKH JHVWXUH RI WKH ZRPDQ UHYHDOVWKHVSLULWXDOLW\RIWKLVVXEVWDQFHWKLVILUHRIQDWXUH SO;,9 ZLWKRXWZKLFKQRWKLQJFDQ JURZ GRZQ KHUH ,W LV WKLV VSLULW VSUHDG RYHU WKH VXUIDFH RI WKH JOREH ZKLFK WKH VXEWOH DQG LQJHQLRXVDUWLVWPXVWFDSWXUHDVDQGZKHQLWDSSHDUV$OVR,PXVWDGGDVSHFLILFERG\LVQHHGHG WR VHUYH DV D UHFHSWDFOH DQ DWWUDFWLQJ PHGLXP FRQWDLQLQJ D SULQFLSOH FDSDEOH RI UHFHLYLQJ WKH VSLULW DQG HPERG\LQJ LW 2XU ERGLHV KDYH URRWV LQ WKH DLU DQG KHDGV RQ WKH JURXQG VD\ WKH :LVH7KHVSLULWLVWKHORGHVWRQHVHDOHGLQWKHEHOO\RI$ULHVZKLFKPXVWEHVHL]HGZLWKVSHHG DQGVNLOODWWKHPRPHQWRILWVELUWK 7KHZDWHUZKLFKZHXVHZULWHVWKHDQRQ\PRXVDXWKRURIWKH&OHIGX&DELQHW+HUPHWLTXHLV DZDWHUFRQWDLQLQJDOOWKHYLUWXHVRIKHDYHQDQGHDUWKWKDWLVZK\LWLVWKHJHQHUDOVROYHQWRIDOO 1DWXUH,WLVWKLVZKLFKRSHQVWKHGRRUVRIRXUUR\DOKHUPHWLFFKDPEHU,QLWRXUNLQJDQGRXU TXHHQDUHVKXWXSDQGWKXVLWLVWKHLUEDWK,WLVWKH)RXQWDLQRI7Up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

 

9LGHVXSUDS

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

&I WKH 'RX]H &OHIV GH OD 3KLORVRSKLH RI %DVLO 9DOHQWLQH 3DULV 0RHW  FOHI  5H HGLWHGE\WKH(GLWLRQVGH0LQXLW
 

 WKHSDUWZKLFKFKDUDFWHUL]HGLWVIRUPRULQKLHURJO\SKLFODQJXDJHLWVKHDG7KLVWLPHZHKDYHWR VWXG\WKHDQLPDOE\LWVHOIDQGZHGRQRWNQRZLQZKDWFRORXULWZDVRULJLQDOO\SDLQWHG*HQHUDOO\ WKHOLRQLVWKHVLJQRIJROGERWKDOFKHPLFDODQGQDWXUDO,WWKXVUHSUHVHQWVWKHSK\VLFRFKHPLFDO SURSHUWLHVRIWKHVHVXEVWDQFHV%XWWKHWH[WVJLYHWKHVDPHQDPHWRWKHPDWWHUZKLFKLVUHFHSWLYH RI WKH XQLYHUVDO VSLULWWKH VHFUHW ILUH GXULQJ SURFHVVLQJ RI WKH VROYHQW ,Q ERWK WKHVH FDVHV LW UHSUHVHQWVSRZHULQFRUUXSWDELOLW\DQGSHUIHFWLRQWKHVHEHLQJIXUWKHULQGLFDWHGFOHDUO\HQRXJKE\ WKH ZDUULRU ZLWK GUDZQ VZRUG WKH PDLOFODG NQLJKW GLVSOD\LQJ WKH NLQJ RI WKH DOFKHPLFDO EHVWLDU\ SO;9  7KHILUVWPDJQHWLFDJHQWZKLFKLVXVHGWRSUHSDUHWKHVROYHQWGHVLJQDWHGE\VRPH$ONDKHVWLV FDOOHGWKHJUHHQ/LRQQRWVRPXFKEHFDXVHLWLVJUHHQLQFRORXUDVEHFDXVHLWKDVQRW\HWDFTXLUHG WKRVHPLQHUDOFKDUDFWHULVWLFVZKLFKLQFKHPLVWU\GLVWLQJXLVKWKHDGXOWVWDWHIURPWKHQDVFHQWRQH ,W LV D JUHHQ DQG VRXU IUXLW FRPSDUHG ZLWK WKH UHG ULSH IUXLW ,W LV PHWDOOLF \RXWK RQ ZKLFK (YROXWLRQKDVQRW\HWZRUNHGEXWZKLFKFRQWDLQVWKHODWHQWJHUPRIUHDOHQHUJ\ZKLFKZLOOEH FDOOHG XSRQ WR GHYHORS ODWHU ,W LV DUVHQLF DQG OHDG LQ UHVSHFW RI VLOYHU DQG JROG ,W LV SUHVHQW LPSHUIHFWLRQIURPZKLFKWKHJUHDWIXWXUHSHUIHFWLRQZLOOHPHUJHWKHUXGLPHQWRIRXUHPEU\RWKH HPEU\RRIRXUVWRQHWKHVWRQHRIRXU(OL[LU&HUWDLQ $GHSWV %DVLO 9DOHQWLQH DPRQJ WKHP KDYH FDOOHG LW JUHHQ YLWULRO LQ RUGHU WR UHYHDO LWV KRW EXUQLQJDQGVDOW\QDWXUH2WKHUVKDYHFDOOHGLWWKH3KLORVRSKHUV(PHUDOGWKH'HZRI0D\WKH +HUERI6DWXUQWKH9HJHWDEOH6WRQHHWF2XUZDWHUWDNHVWKHQDPHRIWKHOHDYHVRIDOOWKHWUHHV RIWKHWUHHVWKHPVHOYHVDQGRIHYHU\WKLQJJUHHQLQFRORXULQRUGHUWRPLVOHDGWKHIRROLVKVD\V 0DVWHU$UQROGRI9LOODQRYD $VIRUWKH5HG/LRQDFFRUGLQJWRWKH3KLORVRSKHUVLWLVQRWKLQJPRUHWKDQWKHVDPHPDWWHURUWKH *UHHQ /LRQ EURXJKW E\ FHUWDLQ SURFHVVHV WR WKLV VSHFLDO TXDOLW\ ZKLFK FKDUDFWHUL]HV KHUPHWLF JROGRUWKH 5HG/LRQ7KLVKDVOHG%DVLO9DOHQWLQHWRJLYHWKHIROORZLQJDGYLFH'LVVROYHDQG QRXULVK WKHUHDO OLRQ ZLWK WKHEORRG RI WKH JUHHQOLRQ VLQFH WKH IL[HGEORRG RI WKH UHG/LRQ LV PDGHIURPWKHYRODWLOHEORRGRIWKHJUHHQRQHZKLFKPDNHVWKHPERWKRIWKHVDPHQDWXUH

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


2I WKHWZHOYH PHGDOOLRQV ZKLFK RUQDPHQWWKH ORZHU URZ RIWKH EDVH ZH VKDOOFRQFHQWUDWH RQ WHQ VLQFH WZR RI WKH VXEMHFWV KDYH EHHQ WRR EDGO\ PXWLODWHG WR UHHVWDEOLVK WKHLU PHDQLQJ :H ZLOOWKHUHIRUHUHJUHWIXOO\SDVVRYHUWKHIRUPOHVVUHPDLQVRIWKHILIWKPHGDOOLRQ RQWKHOHIWVLGH  DQGWKHHOHYHQWK RQWKHULJKWVLGH 1H[WWRWKHSLHUZKLFKVHSDUDWHVWKHFHQWUDOSRUFKIURPWKH

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

7UDQVODWRUVQRWH&RKREDWLRQLVWKHSURFHVVRIUHWXUQLQJDGLVWLOODWHWRLWVUHVLGXHDQGWKHQ UHGLVWLOOLQJ
   

'H5HVSRXU5DUHV([SpULHQFHVVXU,(VSULWPLQpUDO3DULV/DQJORLVHW%DUELQ

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pWLTXHHLWKHUEHFDXVHKHGLGQRWNQRZLWRUEHFDXVHKHYROXQWDULO\ RPLWWHG LW 7KLV VR FRPPRQ DQG VR PXFK GHVSLVHG VXEMHFW EHFRPHV ODWHU WKH 7UHH RI /LIH WKH (OL[LURUWKH3KLORVRSKHUV6WRQHQDWXUHVPDVWHUSLHFHDLGHGE\KXPDQLQGXVWU\WKHSXUHDQG ULFKMHZHORIDOFKHP\,WLVDQDEVROXWHPHWDOOLFV\QWKHVLVDQGDVVXUHVIRUWKHIRUWXQDWHRZQHURI WKLVWUHDVXUHWKHWULSOHHQGRZPHQWRINQRZOHGJHIRUWXQHDQGKHDOWK,WLVWKHKRUQRISOHQW\WKH LQH[KDXVWLEOHVRXUFHRIPDWHULDOKDSSLQHVVLQRXUWHUUHVWULDOZRUOG/HWXVILQDOO\UHPHPEHUWKDW WKH PLUURU LV WKH DWWULEXWH RI 7UXWK 3UXGHQFH DQG .QRZOHGJH WR DOO WKH *UHHN SRHWV DQG P\WKRORJLVWV 1H[W FRPHV WKH DOOHJRU\ RI WKH ZHLJKW RI QDWXUH LQ ZKLFK WKH DOFKHPLVW GUDZV EDFN WKH YHLO FRYHULQJWKHVFDOHV SO;;  1RQHRIWKHSKLORVRSKHUVKDVKDGPXFKWRVD\DERXWWKHVHFUHWRIZHLJKWV%DVLO9DOHQWLQHKDV EHHQFRQWHQWWRUHPDUNWKDWLWZDVQHFHVVDU\WRJLYHDZKLWHVZDQIRUDPDQWZLFHILUHGZKLFK ZRXOG FRUUHVSRQG WR WKH 6LJLOOXUQ 6DSLHQWXP RI +XJLQXV j %DUPD +HUH WKH DUWLVW KROGV D EDODQFH ZLWK RQH VFDOH RXWZHLJKLQJ WKH RWKHU LQ WKH DSSDUHQW UDWLR RI WZR WR RQH 7KH &RVPRSROLWH LQ KLV 7UHDWLVH RQ 6DOW LV HYHQ OHVV SUHFLVH 7KH ZHLJKW RI WKH ZDWHU KH VD\V PXVW

 

1RXYHOOH/XPLpUHFK\PLTXH7UDLWpGX6RXIUHS3DULVG+RXU\

 EH SOXUDO DQG WKDW RI WKH HDUWK FRORXUHG ZKLWH RU UHG PXVW EH VLQJXODU 7KH DXWKRU RI WKH $SKRULVPHV %DVLOLHQV RU WKH &DQRQV +HUPp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

3ULQWHGIROORZLQJWKH2HXYUHVWDQW0pGLFLQDOHVTXH&K\PLTXHV RI53GH&DVWDLJQH3DULV GHOD1RYH


 

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

6DELQH 6WXDUW GH &KHYDOLHU 'LVFRXUV SKLORVRSKLTXHV VXU OHV 7URLV 3ULQFLSHV RU WKH &OHI GX 6DQFWXDLUHSKLORVRSKLTXH3DULV4XLOODX
 

7UDQVODWRUVQRWH7KHTXHVWLRQZRXOGVHHPWRDULVHDVWRZKHWKHUEHOLHYLQJLVDPLVSULQW 7KHVHQVHZRXOGVHHPWRUHTXLUHGLVEHOLHYLQJ
 

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

7RUHLQFUXGHWHFKQLFDOKHUPHWLFWHUPPHDQLQJWRUHQGHUUDZWRSXWEDFNWRDVWDWHSUHYLRXVWR WKHRQHFKDUDFWHUL]LQJPDWXULW\WRUHWURJUHVV
 

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q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oDGH)RU H[DPSOH WKLV ZRUNPDQ VHDWHG DW D UHG WDEOH SXOOLQJ ODUJH SLHFHV RI JROG RXW RI D VDFN WKLV ZRPDQLQDJUHHQERGLFHDQGZHDULQJDVFDUOHWWXQLFGRLQJKHUKDLULQDPLUURUWKHVHKHDYHQO\ WZLQVRIWKHOHVVHU]RGLDFRQHRIZKLFKLVPDGHRIUXE\DQGWKHRWKHURIHPHUDOGHWF :KDWDSURIRXQGVXEMHFWIRUPHGLWDWLRQLVRIIHUHGWRXVE\RXUDQFHVWUDOKHUPHWLF,GHDLQDOOLWV KDUPRQ\DQGXQLW\,QVWRQHRQWKHIDoDGHLQJODVVLQWKHHQRUPRXVRUERIWKHURVHZLQGRZLW

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

   

/D&DEDOH,QWHOOHFWLYH0VVRIWKH%LEOLRWKTXHGH$UVHQDO6HW$S 1RXYHILH/XPLqUHFK\PLTXH7UDLWNGX0HUFXUHFKDS,;S3DULV-HDQG+RXU\

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qVGHOD5RVpH

 

'LFWLRQQDLUHGHV$UWVHWGHV6FLHQFHVDUW5RVH&URL[3DULV,&RLJQDUG

 &XLWH %URWKHUVRIWKHERLOHGGHZ DPHDQLQJZKLFKWKH\WKHPVHOYHVJDYHWRWKHLQLWLDOVRIWKHLU RUGHU)5& ,ZRXOGOLNHWREHDEOHWRVD\PRUHRQWKLVH[WUHPHO\LPSRUWDQWVXEMHFWDQGWRVKRZKRZWKH'HZ RI0D\ 0DLDZDVWKHPRWKHURI+HUPHV WKHOLIHJLYLQJKXPLGLW\RIWKHPRQWKRI0DU\WKH 9LUJLQ0RWKHUFDQHDVLO\EHH[WUDFWHGIURPDSDUWLFXODUERG\ZKLFKLVDEMHFWDQGGHVSLVHGDQG ZKRVHFKDUDFWHULVWLFV,KDYHDOUHDG\GHVFULEHG 7KHUHDUHKRZHYHUERXQGVZKLFKPD\QRWEHRYHUVWHSSHG:HDUHWRXFKLQJRQWKHJUHDWHVW VHFUHWRIWKH:RUNDQG,PXVWUHPDLQWUXHWRP\YRZ,WLVWKH9HUEXPGLPLVVXPRI7UpYLVDQWKH /RVW:RUGRIWKHPHGLHYDOIUHHPDVRQVZKDWDOOWKHKHUPHWLFIUDWHUQLWLHVZHUHKRSLQJWRILQG,WV GLVFRYHU\ZDVWKHDLPRIDOOWKHLUZRUNDQGWKHUDLVRQGp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

$PRQJWKHPRVWFHOHEUDWHGFHQWUHVRILQLWLDWLRQRIWKLVNLQG,ZRXOGPHQWLRQWKHRUGHUVRIWKH ,OOXPLQDWHV WKH.QLJKWVRIWKH%ODFN(DJOHRIWKH 7ZR(DJOHVRIWKH $SRFDO\SVH WKH,QLWLDWH %URWKHUVRI$VLDRI 3DOHVWLQHRIWKH=RGLDFWKH6RFLHWLHVRIWKH%ODFN%URWKHUVRIWKH(OHFWHG &RHQV RIWKH0RSVHVRIWKH 6HYHQ6ZRUGVRIWKH,QYLVLEOH2QHVRIWKH 3ULQFHVRI'HDWKWKH .QLJKWVRIWKH6ZDQ LQVWLWXWHGE\(OLDV WKH.QLJKWVRIWKH'RJDQGWKH&RFNWKH.QLJKWVRIWKH 5RXQG7DEOHRIWKH*HQHWRIWKH7KLVWOHRIWKH%DWKRIWKH'HDG%HDVWRIWKH$PDUDQWKHWF
 




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

*ULOORWGH*LYU\/H*UDQG2HXYUH3DULV&KDFRUQDFS $W6W3HWHUV5RPHWKHVDPHGRRUFDOOHGWKH+RO\'RRURU-XELOHH'RRULVJLOGHGDQG ZDOOHGXS2QFHHYHU\WZHQW\ILYH\HDUVRUIRXUWLPHVLQDFHQWXU\WKH3RSHRSHQVLWZLWKD KDPPHU


   

 RWKHU RU GU\ ZD\ EHLQJ PXFK OHVV HVWHHPHG ,Q WKH ODWWHU WKH FHOHVWLDO 6DOW ZKLFK LV WKH 3KLORVRSKHUVPHUFXU\PXVWEHERLOHGIRUIRXUGD\VLQDFUXFLEOHRYHUDQDNHGILUHWRJHWKHUZLWK DWHUUHVWULDOPHWDOOLFERG\ ,QWKHVHFRQGSDUWRIWKHZRUNDWWULEXWHGWR%DVLO9DOHQWLQHEXWZKLFKVHHPVUDWKHUWREHE\ 6HQLRU=DGLWKWKHDXWKRUDSSHDUVWRKDYHWKHGU\ZD\LQPLQGZKHQKHZULWHVWKDWLQRUGHUWR DUULYH DW WKLV $UW QHLWKHU JUHDW ODERXU QRU WURXEOH LV UHTXLUHG DQG WKH H[SHQVHV DUH VPDOO WKH LQVWUXPHQWVRIOLWWOHZRUWK)RUWKLV$UWPD\EHOHDUQWLQOHVVWKDQWZHOYHKRXUVDQGEURXJKWWR SHUIHFWLRQZLWKLQWKHVSDFHRIHLJKWGD\VLILWKDVLWVRZQSULQFLSOHZLWKLQLWVHOI 3KLODOHWKHV LQ FKDSWHU ;,; RI WKH ,QWURLWXV DIWHU KDYLQJ VSRNHQ RI WKH ORQJ ZD\ ZKLFK KH GHVFULEHVDVWLUHVRPHDQGJRRGRQO\IRUULFKSHRSOHVD\V%XWE\RXUZD\QRPRUHWKDQDZHHN LVQHFHVVDU\*RGKDVUHVHUYHGWKLVUDUHDQGHDV\ZD\IRUWKHGHVSLVHGSRRUDQGIRUDEMHFWVDLQWV )XUWKHUPRUH /DQJOHW'XIUHVQR\ LQ KLV 5HPDUTXHV RQ WKLV FKDSWHU WKLQNV WKDW WKLV ZD\ LV DFKLHYHGE\WKHGRXEOHSKLORVRSKLFDOPHUFXU\DQGDGGV7KHZRUNLVWKHUHE\DFFRPSOLVKHGLQ HLJKWGD\VLQVWHDGRIWDNLQJQHDUO\HLJKWHHQPRQWKVE\WKHILUVWZD\ 7KLVVKRUWHQHGZD\ZKLFKLVKRZHYHUFRYHUHGE\DWKLFNYHLOKDVEHHQFDOOHGE\WKH:LVHWKH 5HJLPH RI 6DWXUQ 7KH ERLOLQJ RI WKH :RUN LQVWHDG RI QHFHVVLWDWLQJ WKH XVH RI D JODVV YDVH UHTXLUHVRQO\WKHKHOSRIDVLPSOHFUXFLEOH,ZLOOVWLUXS\RXUERG\LQDQHDUWKHQZDUHYDVHLQ ZKLFK,ZLOOLQWHULWZULWHVDIDPRXVDXWKRUZKRVD\VDJDLQIXUWKHURQ0DNHDILUHLQ\RXU JODVVWKDWLVWRVD\LQWKHHDUWKZKLFKKROGVLWHQFORVHG7KLVEULHIPHWKRGDERXWZKLFKZHKDYH IUHHO\LQVWUXFWHG\RXVHHPVWRPHWREHWKHVKRUWHUZD\DQGWKHWUXHSKLORVRSKLFDOVXEOLPDWLRQ LQ RUGHU WR DUULYH DW WKH SHUIHFWLRQ RI WKLV GLIILFXOW WDVN 7KLV FRXOG EH WKH H[SODQDWLRQ RI WKH EDVLFPD[LPRIRXU6FLHQFH2QHVLQJOHYHVVHORQHVLQJOHPDWWHURQHVLQJOHIXUQDFH

   

$]RWKRX0R\HQGHIDLUH2UFDFKWGHV3KLORVRSKHV3DULV3LHUUH0RHWS 6DORPRQ7ULVPRVLQ/D7R\VRQG2U3DULV&K6HYHVWUHSDQG

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

       

:\OLDQL+HUPHVGHYRLOW3DULV)/RFTXLQ +GH/LQWDXW/$XURUH0VV%LEOLRWKpTXHGH,$UVHQDO6$)QR -)+HQFNHO7UXLWWGH,$SSURSULDWLRU]3DULV7KRPDV+pULVVDQWSSDUD

([SOLFDWLRQGH(QLJPHWURXYWHQXQSLOLHUGH(JOLVH1RVWUH'DPHGHSDULVE\WKH6LHXU' /%3DULV

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

7KLVLWLQHUDU\LVQRORQJHUYDOLG6L[\HDUVDJRWKHV\PEROLFDOSLOODUEHLQJWKHREMHFWRIPXFK MXVWLILHGYHQHUDWLRQFDPHEDFNWR1RWUH'DPHDQGLVQRZQRWIDUIURPWKHSODFHZKLFKZDVLWV RZQIRUPRUHWKDQILYHKXQGUHG\HDUV,WLVLQIDFWWREHIRXQGLQDURRPZLWKDKLJKFHLOLQJ ZLWK VXUEDVHG ULEEHG YDXOWLQJ LQ WKH QRUWK WRZHU ZKLFK LV VRRQHU RU ODWHU WR EH DUUDQJHG DV D PXVHXP$QLGHQWLFDOURRPPD\EHIRXQGRQWKHVDPHIORRURQWKHRWKHUVLGHRIWKHJUHDWRUJDQ SODWIRUP
 

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

 7KH PDWWHUV SUHSDUHG DQG XQLWHG LQ D VLQJOH FRPSRXQG PXVW VXEPLW WR VXEOLPDWLRQ RU ODVW SXULILFDWLRQE\ILUH,QWKLVRSHUDWLRQWKHSDUWVZKLFKFDQEHEXUQWXSDUHGHVWUR\HGWKHHDUWKO\ PDWWHUV ORVH WKHLU FRKHVLRQ DQG GLVSHUVH ZKLOH WKH SXUH LQFRPEXVWLEOH SULQFLSOHV HPHUJH LQ D KLJKHUIRUP7KLVLVWKH3KLORVRSKHUV6DOWWKHNLQJFURZQHGZLWKJORU\ZKRLVERUQLQWKHILUH DQGPXVWUHMRLFHLQWKHPDUULDJHZKLFKIROORZVLQRUGHUVD\V+HUPHVWKDWKLGGHQWKLQJVPD\EH PDGHPDQLIHVW 5H[DELJQHYHQLHWDFFRQMXJLRJDXGHELWHWRFFXOWDSDWHEXQW7KHSOLQWKVKRZV XVRQO\WKHKHDGRIWKLVNLQJHPHUJLQJIURPWKHSXULI\LQJIODPHV7RGD\LWLVLPSRVVLEOHWREH VXUHWKDWWKHIURQWDOEDQGHQJUDYHGRQWKHKXPDQKHDGZDVRQFHSDUWRIDFURZQ)URPWKHVL]H DQG DSSHDUDQFH RI WKH VNXOO RQH FRXOG HTXDOO\ ZHOO WDNH LW IRU D VRUW RI VWHHO FDS RU KHOPHW )RUWXQDWHO\ KRZHYHU ZH KDYH WKH WH[W RI (VSULW *RELQHDX GH 0RQWOXLVDQW ZKRVH ERRN ZDV ZULWWHQRQ:HGQHVGD\WK0D\WKHHYHRIWKHJORULRXV$VFHQVLRQRI2XU6DYLRXU-HVXV &KULVW DQGZKRWHOOVXVGHILQLWHO\WKDWWKHNLQJZHDUVDWULSOHFURZQ $IWHUWKHUDLVLQJRIWKHSXUHDQGFRORXUHGSULQFLSOHVRIWKHSKLORVRSKLFFRPSRXQGWKHUHVLGXHLV UHDG\IURPWKHQRQWRSURYLGHWKHYRODWLOHDQGIXVLEOHPHUFXULDOVDOWWRZKLFKWKHDXWKRUVKDYH RIWHQJLYHQWKHQDPH%DE\ORQLDQ'UDJRQ ,Q FUHDWLQJ WKLV HPEOHPDWLF PRQVWHU WKH VFXOSWRU KDV SURGXFHG D YHULWDEOH FKHI GRHXYUH DQG DOWKRXJKLWLVPXWLODWHGWKHOHIWZLQJLVEURNHQLWUHPDLQVQRQHWKHOHVVDUHPDUNDEOHSLHFHRI VWDWXDU\ 7KH IDEXORXV EHDVW HPHUJHV IURP WKH IODPHV DQG LWV WDLO DSSHDUV WR FRPH RXW RI WKH KXPDQEHLQJZKRVHKHDGLWWRVRPHH[WHQWVXUURXQGV7KHQZLWKDWZLVWLQJPRYHPHQWZKLFK DUFKHVLWVEDFNRQWKHYDXOWLQJLWFRPHVWRJUDVSWKHDWKHQRULQLWVSRZHUIXOFODZV ,IZHH[DPLQHWKHRUQDPHQWDWLRQRIWKHSOLQWKZHVKDOOQRWLFHJURXSVRIVKDOORZJURRYHVFXUYHG DWWKHWRSDQGIODWDWWKHERWWRP7KRVHRQWKHOHIWIDFHDUHDFFRPSDQLHGE\DIORZHUZLWKIRXU XQMRLQHGSHWDOV7KLVH[SUHVVHVWKHXQLYHUVDOPDWWHUWKHTXDWHUQDU\RIILUVWHOHPHQWVDFFRUGLQJWR WKHGRFWULQHRI$ULVWRWOHZKLFKZDVFXU

([SOLFDWLRQWUqVFXULHXVHGHV(QLJPHVHW)LJXUHVKLpURJO\SKLTXHV3K\VLTXHVTXLVRQWDX JUDQGSRUWDLOGHO(JOLVH&DWKHGUDOHHW0HWURSROLWDLQHGH1RWUH'DPHGH3DULV
 

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

/3)UDQFRLV&DPEULHO &RXUVGH3KLORVRSKLHKHUPWWLTXHRXG$OFKLPLHHQGL[QHXIOHTRQV 3DULV/DFRXUHW0DLVWUDVVH


 

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

 WKHOLIHRIPDWWHULVDSHUVRQDORSLQLRQRIWKHDXWKRUZKLFKKHLVIUHHWRH[SUHVVEXWWKDWKHLV UHSUHVHQWLQJWKH=RURDVWULDQLQMXQFWLRQWRNHHSVLOHQFHLVQRWDQGQHYHUZDVWKHFDVH 6XFKIROO\LVUHJUHWWDEOHDQGXQZRUWK\RIDVLQFHUHKRQHVWDQGXSULJKWVSLULW


2XU JUHDW FDWKHGUDOV EXLOW E\ PHGLHYDO )UHHPDVRQV LQ RUGHU WR HQVXUH WKH WUDQVPLVVLRQ RI KHUPHWLF V\PEROV DQG GRFWULQH KDYH IURP WKH WLPH RI WKHLU DSSHDUDQFH H[HUFLVHG D PDUNHG LQIOXHQFHRQQXPHURXVPRUHPRGHVWH[DPSOHVRIFLYLORUUHOLJLRXVDUFKLWHFWXUH )ODPHO WRRN SOHDVXUH LQ FRYHULQJ WKH PDQ\ EXLOGLQJV ZKLFK KH HUHFWHG ZLWK KLHURJO\SKV DQG HPEOHPV7KH$EEp9LOODLQWHOOVXVWKDWWKHOLWWOHSRUWDORI6W-DFTXHVOD%RXFKHULHZKLFKWKH $GHSWFRPPLVVLRQHGLQZDVFRYHUHGLQILJXUHV2QWKHZHVWSRVWRIWKHSRUWDOKHVD\VD OLWWOHVFXOSWXUHGDQJHOLVVHHQKROGLQJDFLUFOHRIVWRQHLQKLVKDQGV)ODPHOKDGDFLUFXODUSLHFH RIEODFNPDUEOHLQFRUSRUDWHGLQLWZLWKDWKUHDGRIILQHJROGLQWKHIRUPRIDFURVV7KHSRRU KDGKLVJHQHURVLW\WRWKDQNDOVRIRUWZRKRXVHVZKLFKKHKDGEXLOWLQWKH5XHGX&LPLWLqUHGH6W 1LFRODVGHV&KDPSVWKHILUVWLQDQGWKHRWKHULQ7KHVHEXLOGLQJVVKRZHG6DOPRQ LQIRUPVXVDTXDQWLW\RIILJXUHVHQJUDYHGRQWKHVWRQHVZLWKDJRWKLF1DQG)RQHLWKHUVLGH 7KHFKDSHORIWKH+RVSLWDO6W*HUYDLVUHEXLOWDWKLVH[SHQVHZDVLQQRZD\LQIHULRUWRWKHRWKHU IRXQGDWLRQV 7KH IDoDGH DQG WKH SRUWDO RI WKH QHZ FKDSHO ZULWHV $OEHUW 3RLVVRQ  ZHUH FRYHUHG ZLWK ILJXUHV DQG OHJHQGV LQ )ODPHOV XVXDO PDQQHU 7KH SRUWDO RI 6W *HQHYLqYHGHV $UGHQWV VLWXDWHG LQ WKH 5XH GH OD 7L[DQGHULH SUHVHUYHG LWV LQWHUHVWLQJ V\PEROLVP XQWLO WKH PLGGOHRIWKHHLJKWHHQWKFHQWXU\DWZKLFKWLPHWKHFKXUFKZDVFRQYHUWHGLQWRDKRXVHDQGWKH RUQDPHQWVRQWKHIDoDGHZHUHGHVWUR\HG)ODPHODOVRHUHFWHGWZRGHFRUDWLYHDUFDGHV

   

$EEH9LOODLQ+LVWRLUHFULWLTXHGH1LFRODV)ODPHO3DULV'HVSUH] $OEHUW3RLVVRQ+LVWRLUHGH,$OFKLPLH1LFRODV)ODPHO3DULV&KDFRUQDF

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

 

7UDQVODWRUVQRWHDPDWUDVVLVDURXQGJODVVYHVVHOZLWKDQHFNXVHGIRUGLVWLOOLQJ

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

$PLHQV

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p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



*'XUDQG0RQRJUDSKLFGHO(JOLVHFDWKHGUDOHGGPLHQV3DULV$3LFDUG

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



/D/XPLpUHVRUWDQWSDUVR\PHVPHGHV7HQpEUHV3DULVG+RXU\FKS

 LQJWRPRGHUQDXWKRUVWKHWHPSHUDWXUHDWWKHEHJLQQLQJVKRXOGQRWH[FHHGWKHKHDWRIWKHKXPDQ ERG\ $OEHUW 3RLVVRQ JLYHV  DV D EDVLV LQFUHDVLQJ SURJUHVVLYHO\ XS WR DURXQG  &HQWLJUDGH3KLODOHWKHVLQKLVUXOHVDIILUPVWKDWWKDWGHJUHHRIKHDWZKLFKFRXOGKROGWKHOHDG  RUWLQ  LQIXVLRQRUHYHQJUHDWHUWKDWLVWRVD\VXFKWKDWWKHYHVVHOVFRXOGEHDULW ZLWKRXW EUHDNLQJ PXVW EH FDOOHG D WHPSHUDWH KHDW :LWK WKDW KH VD\V \RX ZLOO EHJLQ \RXU GHJUHH RI KHDW SURSHU WR WKH UHDOP LQ ZKLFK QDWXUH KDV SODFHG \RX ,Q KLV ILIWHHQWK UXOH 3KLODOHWKHVUHYHUWVWRWKLVLPSRUWDQWTXHVWLRQ$IWHUKDYLQJVWUHVVHGWKDWWKHDUWLVWPXVWRSHUDWH RQWKHPLQHUDOERGLHVDQGQRWRQWKHRUJDQLFVXEVWDQFHVKHVSHDNVWKXV ,W LV QHFHVVDU\ WKDW WKH ZDWHU RI RXU ODNH VKRXOG ERLO ZLWK WKH DVKHV RI WKH WUHH RI +HUPHV , H[KRUW \RX WR ERLO LW QLJKW DQG GD\ ZLWKRXW FHDVLQJ LQ RUGHU WKDW LQ WKH PRYHPHQWV RI RXU WHPSHVWXRXVVHDWKHFHOHVWLDOQDWXUHPD\ULVHDQGWKHWHUUHVWULDOVLQN)RU,DVVXUH\RXWKDWLIZH GRQRWERLOLWZHFDQQHYHUFDOORXUZRUNDFRFWLRQEXWDGLJHVWLRQ %HVLGHWKHILUHRIWKHZKHHO,ZRXOGSRLQWRXWDVPDOOVXEMHFWVFXOSWXUHGRQWKHULJKWRIWKHVDPH SRUFKDQGZKLFK*'XUDQGWDNHVWREHDUHSOLFDRIWKHVHYHQWKPHGDOOLRQRI3DULV7KLVLVZKDW WKHDXWKRUVD\VDERXWLW EN,S  0-RXUGDLQDQG0'XYDOKDGJLYHQWKHQDPH,QFRQVWDQF\WRWKHYLFHZKLFKLVWKHRSSRVLWHRI 3HUVHYHUDQFHEXWLWVHHPVWRPHWKDWWKHZRUG$SRVWDV\VXJJHVWHGE\WKH$EEH5R]HLVPRUH DSWIRUWKHVXEMHFWUHSUHVHQWHG,WLVDEDUHKHDGHGILJXUHFOHDQVKDYHQDQGWRQVXUHGDFOHUNRUD PRQNZHDULQJDFDOIOHQJWKWXQLFZLWKDKRRGGLIIHULQJIURPWKHGUHVVRIWKHFOHUNLQWKHJURXS LOOXVWUDWLQJ$QJHURQO\LQEHLQJGUDZQLQE\DEHOW7KURZLQJDVLGHKLVKRVHDQGKLVIRRWZHDUD VRUW RI KDOI ERRWV KH VHHPV WR EH OHDYLQJ D SUHWW\ OLWWOH FKXUFK ZLWK ORQJ QDUURZ ZLQGRZV D F\OLQGULFDO EHOIU\ DQG D VKDP GRRU VKRZQ LQ WKH EDFNJURXQG SO ;;;,9  ,Q D IRRWQRWH 'XUDQGDGGV2QWKHJUHDWSRUWDORI1RWUH'DPHLQ3DULVWKHDSRVWDWHOHDYHVKLVJDUPHQWVLQWKH FKXUFK LWVHOI RQ WKH VWDLQHG JODVV ZLQGRZ RI WKH VDPH FKXUFK KH LV VKRZQ RQ WKH RXWVLGH PDNLQJWKHJHVWXUH

5qJOHVGH3KLODOqWKHSRXUVHFRQGXLUHGXQVO2HXYUHKHUPpWLTXHLQ+LVWRLUHGHOD3KLORVRSKLH KHUPHWWLTXHE\/HQJOHW'XIUHVQR\3DULV&RXVWHOLHUEN,,


 RI D PDQ ZKR LV UXQQLQJ DZD\ $W &KDUWUHV KH KDV XQGUHVVHG DOPRVW FRPSOHWHO\ ZHDULQJ QRWKLQJEXWKLVVKLUW5XVNLQUHPDUNVWKDWWKHXQEHOLHYLQJIRROLVDOZD\VUHSUHVHQWHGEDUHIRRWLQ WKHPLQLDWXUHVRIWKHWZHOIWKDQGWKLUWHHQWKFHQWXULHV )RU P\ SDUW , ILQG QR FRUUHVSRQGHQFH EHWZHHQ WKH PRWLI RI 3DULV DQG WKH RQH DW $PLHQV :KHUHDVWKHIRUPHUV\PEROL]HVWKHEHJLQQLQJRIWKH:RUNWKHODWWHURQWKHFRQWUDU\LQWHUSUHWV LWV HQG 7KH FKXUFK LV UDWKHU DQ DWKHQRU DQG LWV EHOIU\ HUHFWHG ZLWKRXW UHJDUG WR WKH PRVW HOHPHQWDU\ UXOHV RI DUFKLWHFWXUH LV WKH VHFUHW IXUQDFH HQFORVLQJ WKH SKLORVRSKLF HJJ 7KLV IXUQDFHLVSURYLGHGZLWKRSHQLQJVWKURXJKZKLFKWKHFUDIWVPDQZDWFKHVWKHSKDVHVRIWKHZRUN 2QHLPSRUWDQWDQGYHU\FKDUDFWHULVWLFGHWDLOKDVEHHQIRUJRWWHQ,DPVSHDNLQJRIWKHKROORZHG RXWDUFKDWWKHEDVH1RZLWLVGLIILFXOWWRDGPLWWKDWDFKXUFKFRXOGEHEXLOWRQYLVLEOHYDXOWVDQG WKXVDSSHDUWRUHVWRQIRXUIHHW,WLVQROHVVUDVKWRWDNHDVDJDUPHQWWKHOLPSPDVVWRZKLFKWKH DUWLVWLVSRLQWLQJZLWKKLVILQJHU7KHVHFRQVLGHUDWLRQVKDYHOHGPHWREHOLHYHWKDWWKHPRWLIDW $PLHQV LV FRQFHUQHG ZLWK KHUPHWLF V\PEROLVP DQG UHSUHVHQWV WKH FRFWLRQ LWVHOI DV ZHOO DV LWV DSSDUDWXV7KHDOFKHPLVWLVSRLQWLQJZLWKKLVULJKWKDQGWRWKHFRDOVDFNDQGWKHIDFWWKDWKHKDV DEDQGRQHGKLVIRRWZHDULVVXIILFLHQWLQGLFDWLRQRIWKHH[WHQWWRZKLFKSUXGHQFHDQGWKHFRQFHUQ IRUVLOHQFHPXVWEHFDUULHGLQWKLVVHFUHWWDVN$VIRUWKHOLJKWFORWKLQJZRUQE\WKHFUDIWVPDQLQ WKHPRWLIDW&KDUWUHVWKLVLVMXVWLILHGE\WKHKHDWJLYHQRIIE\WKHIXUQDFH$WWKHIRXUWKGHJUHHRI ILUH ZKHQ SURFHHGLQJ E\ WKH GU\ PHWKRG LW EHFRPHV QHFHVVDU\ WR PDLQWDLQ D WHPSHUDWXUH RI FORVH RQ  ZKLFK LV DOVR LQGLVSHQVDEOH LQ SURMHFWLRQ 2XU PRGHUQ ZRUNHUV LQ WKH PHWDOOXUJLFDOLQGXVWU\GUHVVLQWKHVDPHVFDQWZD\DVWKHSXIIHURI&KDUWUHV,VKRXOGFHUWDLQO\EH JODGWRNQRZWKHUHDVRQZK\DSRVWDWHVIHHOLW QHFHVVDU\WRGRIIWKHLUFORWKHVZKHQOHDYLQJWKH WHPSOH,WLVMXVWWKLVUHDVRQZKLFKVKRXOGKDYHEHHQJLYHQLQRUGHUWRXSKROGDQGVXSSRUWWKH WKHVLVSURSRXQGHGE\WKHDERYHPHQWLRQHGDXWKRUV :H KDYH VHHQ KRZ DW 1RWUH 'DPH RI 3DULV WKH DWKHQRU WDNHV SUHFLVHO\ WKLV IRUP RI D WRZHU UDLVHGRQDUFKHV,WLVVHOIDSSDUHQWWKDWLWFRXOGQRWKDYHEHHQUHSURGXFHGHVRWHULFDOO\H[DFWO\DV LWH[LVWHGLQWKHODERUDWRU\7KHUHIRUHWKH\FRQILQHGWKHPVHOYHVWRJLYLQJLWDQDUFKLWHFWXUDOIRUP ZLWKRXWKRZHYHUORVLQJWKRVHFKDU

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

&I-HDQ/LNEDXW4XDWUH/LYUHVGHV6HFUHWVGH0HGLFLQHHWGHOD3KLORVRSKLH&KLPLTXH3DULV -DFTXHVGX3X\VSDDQGD


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

 

(SLVWOHWRWKH&RORVVLDQVFK,YDQG

/H 3VDXWLHU G+HUPRSKLOH LQ 7UDLWpV GHV 0HIDX[ 0VV DQRQ RI HLJKWHHQWK FHQWXU\ VWURSKH ;;9

 SUHIHUV\PEROLFDOODQJXDJH+D\PRQ JLYHVDQH[DPSOHRIWKLVZKHQKHVD\V ,QRUGHUWRREWDLQWKHILUVWDJHQW\RXPXVWJRWRWKHXWWHUPRVWSDUWRIWKHZRUOGZKHQ\RXKHDU WKHWKXQGHUJURZOLQJWKHZLQGEORZLQJWKHKDLODQGUDLQIDOOLQJLWLVWKHUHWKDW\RXZLOOILQGWKH WKLQJLI\RXVHHNLW $OOWKHGHVFULSWLRQVOHIWXVE\WKH3KLORVRSKHUVDERXWWKLVVXEMHFWRUILUVWPDWWHUZKLFKFRQWDLQV WKH HVVHQWLDO DJHQW DUH H[WUHPHO\ FRQIXVHG DQG YHU\ P\VWHULRXV +HUH DUH VRPH FKRVHQ IURP DPRQJWKHEHVW 7KH DXWKRU RI WKH FRPPHQWDU\ RQ /D /XPLWUH VRUWDQW GHV 7q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

+D\PRQ(SLVWRODGH/DSLGLEXV3KLORVRSKLFLV7UHDWLVHEN9,,RI7KHDWUXP&KHPLFXP $UJHQWRUDWL
  

2HXYUHVGH1*URVSDUP\HW1LFRODV9DORLVPVTXRWHGVXSUDS 1LFKRODV)ODPHO2ULJLQDOGX'ELUHRU7KUpVRUGH3KLORVRSKLH3DULV+XOSHDXSB

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o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

     

/H%UHWRQ&OHIVGHOD3KLORVRSKLH6SDJ\ULTXH3DULV-RPEHUWS /D&OHIGX&DELQHWKHUPHWWLTXHPVTXRWHGVXSUDS 7KHLPLWDWLRQRI&KULVWENFKY

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

7UDQVODWRUVQRWHFU\SWRJDPDSODQWKDYLQJQRVWDPHQVRUSLVWLODQGWKHUHIRUHQRSURSHU IORZHUV
 

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

%RXUJHV

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

 RULJLQDO PDJQLILFHQFH RI WKLV SDODWLDO KRXVH ZHUH LW QRW IRU WKH IDFW WKDW WKH IDo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p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qUHVRI3LFDUG\ SO;/  ,QWKHFHQWUHRIWKHPRWLIDFDVNHWLQWKHIRUPRIDFXEHSURWUXGHVDWWKHIRRWRIDEXVK\WUHH ZKRVH IROLDJH FRQFHDOV WKH FURZQHG KHDG RI .LQJ 0DUN 2Q HDFK VLGH DSSHDU 7ULVWDQ RI /\RQQHVVHDQG,VROGHWKHIRUPHUZHDULQJDFKDSHURQZLWKEXULHWDQGWKHODWWHUD

0HUFXU\LVWKH3KLORVRSKHUVKRO\ZDWHU/DUJHVKHOOVZHUHIRUPHUO\XVHGWRKROGKRO\ZDWHU WKH\DUHVWLOOWREHIRXQGLQPDQ\FRXQWU\FKXUFKHV


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

7HFKQLFDO KHUPHWLF WHUP VLJQLI\LQJ EHLQJ UHQGHUHGUDZ WKDW LV WR UHYHUW WR D VWDWH SUHFHGLQJ PDWXULW\EHLQJUHWURJUDGHG


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


7KH /DOOHPDQW PDQVLRQ KDV HYHQ PRUH WR KROG RXU DWWHQWLRQ WKDQ -DFTXHV &RHXU
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
+HUHLVWKHNLWFKHQ
KHWHOOVXV,WLVDORZ FHLOLQJHGEDVHPHQWURRPRQO\GLPO\OLJKWHGE\DORQJORZZLQGRZFXWIURPDPXOOLRQRIVWRQH 7KH ILUHSODFH LV PLQXWH DQG ZLWKRXW GHSWK 6XFK LV WKH VRFDOOHG
NLWFKHQ
 7R VXSSRUW KLV VWDWHPHQWRXUJXLGHSRLQWVWRDFXUYLQJFRUEHOVKRZLQJDVFKRODUJUDVSLQJWKHKDQGOHRIDSHVWOH ,VWKLVUHDOO\WKHLPDJHRIDEURWKVSRLOHURIWKHVL[WHHQWK

 FHQWXU\",GRXEWLW0\JODQFHZDQGHUVIURPWKHOLWWOHILUHSODFHZKHUH\RXFRXOGKDUGO\URDVWD WXUNH\ EXW ZKLFK ZRXOG EH ODUJH HQRXJK WR WDNH WKH WRZHU RI DQ DWKHQRUWR WKH VFXOOLRQ SURPRWHGFRRNWKHQURXQGWKHNLWFKHQLWVHOIVRGDUNDQGVDGRQWKLVEULJKWVXPPHU
VGD\ 7KH PRUH , WKLQN DERXW LW WKH OHVV UHDVRQDEOH GRHV WKH JXLGH
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
 HJJ DQG WKH JUHHQ OLRQ %\ WKH WHUP HJJ WKH :LVH PHDQ WKHLU FRPSRXQG SUHSDUHGLQLWVRZQYHVVHODQGUHDG\WRXQGHUJRWKHWUDQVIRUPDWLRQVZKLFKWKHDFWLRQRIWKHILUH ZLOOSURGXFHLQLW,QWKLVVHQVHLWUHDOO\LVDQHJJVLQFHLWVFRYHULQJRULWVVKHOOHQFORVHVWKH SKLORVRSKHUV
UHELVFRPSRVHGRIZKLWHDQGUHGLQWKHVDPHSURSRUWLRQDVLQDELUG
VHJJ$VIRU WKH VHFRQG HSLWKHW WKH WH[WV KDYH QHYHU JLYHQ DQ LQWHUSUHWDWLRQ RI LW %DWVGRUII LQ KLV )LOHW G
GULDGQH VD\VWKDWWKHSKLORVRSKHUVJDYHWKHQDPHJUHHQOLRQWRWKHYHVVHOXVHGLQWKHFRFWLRQ EXWKHGRHVQRWJLYHDQ\

 UHDVRQ IRU WKLV 7KH &RVPRSROLWH LQVLVWLQJ IXUWKHU RQ WKH TXDOLW\ RI WKH YDVH DQG LWV LQGLVSHQVDELOLW\ LQ WKH RSHUDWLRQ DVVHUWV WKDW LQ WKH :RUN
WKHUH LV WKLV RQH JUHHQ /LRQ ZKLFK FORVHVDQGRSHQVWKHVHYHQLQGLVVROXEOHVHDOVRIWKHVHYHQPHWDOOLFVSLULWVDQGZKLFKWRUPHQWVWKH ERGLHVXQWLOLWKDVHQWLUHO\SHUIHFWHGWKHPE\PHDQVRIWKHDUWLVW
VORQJDQGUHVROXWHSDWLHQFH
* $XUDFK
V PDQXVFULSW VKRZV D JODVV PDWUDVV KDOI ILOOHG ZLWK JUHHQ OLTXLG DQG DGGV WKDW WKH ZKROHDUWLVEDVHGRQWKHDFTXLVLWLRQRIWKLVVLQJOHJUHHQ/LRQDQGWKDWLWVYHU\QDPHLQGLFDWHVLWV FRORXU 7KLV LV WKH YLWULRO RI %DVLO 9DOHQWLQH 7KH WKLUG ILJXUH RI WKH JROGHQ )OHHFH LV DOPRVW LGHQWLFDO ZLWK$XUDFK
VSLFWXUH,WVKRZVDSKLORVRSKHUGUHVVHGLQUHGXQGHUDSXUSOHFORDNDQGZHDULQJD JUHHQ FDS SRLQWLQJ ZLWK KLV ULJKW KDQG WR D JODVV PDWUDVV FRQWDLQLQJ D JUHHQ OLTXLG 5LSOH\ LV QHDUHU WR WKH WUXWK ZKHQ KH VD\V
-XVW D VLQJOH XQFOHDQ ERG\ HQWHUV RXU PDJLVWHU\ WKH 3KLORVRSKHUVFDOOLWWKHJUHHQ/LRQ,WLVWKHPHGLXPRUPHDQVRIMRLQLQJWKHWLQFWXUHVEHWZHHQ WKHVXQDQGWKHPRRQ
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
V LQWHQWLRQ RU KLV FRQYHQLHQFH WKH HVVHQWLDO WKLQJ LV WKDW LW PD\ HDVLO\ EH MRLQHG WR WKH HQDPHOOHU
VODPS+RZHYHUWKHVHSUDFWLFDOGHWDLOVDUHVXIILFLHQWO\ZHOONQRZQIRUPHWREHDEOH WRGLVSHQVHZLWKPRUHGHWDLOHGH[SODQDWLRQV )RUP\RZQSDUW,ZRXOGOLNHDERYHDOOWRSRLQWRXWWKDWWKH

/H 7UqV SUpFLHX[ 'RQ GH 'LHX 0DQXVFULSW RI *HRUJHV $XUDFK RI 6WUDVERXUJ ZULWWHQ DQG SDLQWHGE\KLVRZQKDQGWKH\HDURIWKH6DOYDWLRQRIUHGHHPHG+XPDQLW\


7KHH[SUHVVLRQ/RUUDLQH DVVZDVIRUPHUO\XVHGWRGLVWLQJXLVKPRXOGHGIURPEORZQJODVV 7KDQNVWRLWVPRXOGLQJWKH/RUUDLQHJODVVFRXOGKDYHYHU\WKLFNDQGUHJXODUVLGHV




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pGpGH3RQWKLHX RI WKHYHUVLRQRI-DFTXHVGH9RUDJLQH,ZLOOGHOLEHUDWHO\XQGHUOLQHWKHSDVVDJHVDQGQDPHVZKLFK KDYHDGLUHFWEHDULQJRQWKHZRUNLWVHOILWVFRQGLWLRQVDQGPDWHULDOVVRWKDWWKHUHDGHUPD\ SDXVHUHIOHFWDQGSURILWE\WKHP



$PpGpHGH3RQWKLHX/pJHQGHVGX9LHX[3DULV3DULV%DFKHOLQ'HIORUHQQHS


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

 YRLFH RI D FKLOG ZKR FDOOHG KLPWKUHH WLPHVE\ QDPH +H JRW XS WRRN WKH FKLOG RQ KLV EURDG VKRXOGHUVDQGVWHSSHGLQWRWKHWRUUHQW :KHQ KH UHDFKHG WKH PLGGOH KH VXGGHQO\ VDZ WKH WRUUHQW EHFRPH YLROHQW 7KH ZDYHV VZHOOHG DQGKXUOHGWKHPVHOYHVDWKLVVLQHZ\OHJVWRNQRFNKLPRYHU+HUHVLVWHGDVEHVWKHFRXOGEXWWKH FKLOG
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
7KLVQDUUDWLYHVKRZVFOHDUO\HQRXJKKRZIDLWKIXOO\WKHDUWLVWKDVREVHUYHGDQGUHSUHVHQWHGWKH OHJHQGGRZQWRWKHODVWGHWDLOV%XWKHKDVGRQHHYHQEHWWHUWKDQWKLV8QGHUWKHLQVSLUDWLRQRI WKHKHUPHWLFVFKRODUZKRRUGHUHGWKHZRUNIURPKLPKHKDVSODFHGWKHJLDQWZLWKKLVIHHWLQ WKHZDWHUFORWKLQJKLPLQVRPHOLJKWPDWHULDONQRWWHGRQWKHVKRXOGHUDQGGUDZQLQURXQGWKH ZDLVW ZLWK D EURDG EHOW ,W LV WKLV EHOW ZKLFK JLYHV 6W &KULVWRSKHU KLV UHDO HVRWHULF FKDUDFWHU :KDW,DPJRLQJWRVD\DERXWLWKHUHLVQRWWDXJKWHOVHZKHUH%XWDSDUWIURPWKHIDFWWKDWIRU PDQ\ SHRSOH WKH VFLHQFH WDXJKW KHUH UHPDLQV QRQH WKH OHVV REVFXUH , WKLQN DOVR WKDW D ERRN ZKLFKWHDFKHVQRWKLQJLVXVHOHVVDQGYDLQ)RUWKLVUHDVRQ,DPJRLQJWRHQGHDYRXUWROD\EDUH WKH V\PERO DV IDU DV , FDQ LQ RUGHU WR VKRZ WR LQYHVWLJDWRUV RI WKH RFFXOW WKH VFLHQWLILF IDFW KLGGHQEHQHDWKWKHLPDJH 2IIHUXV
EHOWLVPDUNHGZLWKFULVVFURVVOLQHVOLNHWKRVHVHHQRQWKHVXUIDFHRIWKHVROYHQWZKHQLW KDVEHHQSUHSDUHGDFFRUGLQJWRFDQRQODZ7KLVLVWKHVLJQUHFRJQL]HGE\DOOWKH3KLORVRSKHUVDV

$FFRUGLQJWRFHUWDLQGRFXPHQWVSUHVHUYHGLQWKHDUFKLYHVRIWKH/DOOHPDQWPDQVLRQZHNQRZ WKDW-HDQ/DOOHPDQWEHORQJHGWRWKHDOFKHPLFDOEURWKHUKRRGRIWKH.QLJKWVRIWKH5RXQG7DEOH


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
7KHZLQG ZKLFKLVZLQJHGDQGYRODWLOHPHUFXU\FDUULHGLWLQKHUEHOO\
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
ZKLFKVZLPVLQRXUSKLORVRSKLFZDWHU
DFFRUGLQJWRWKHYHU\H[SUHVVLRQRIWKH&RVPRSROLWH,W VKRXOG EH QRWHG WKDW LQ WKH %\]DQWLQH EDVLOLFDV &KULVW , ZDV VRPHWLPHV UHSUHVHQWHG OLNH WKH VLUHQVZLWKDILVK
VWDLO+HLVVKRZQLQWKLVZD\RQWKHFDSLWDORIDFROXPQLQWKH&KXUFKRI6W %ULFHDW6W%ULVVRQVXU/RLUH /RLUHW 7KHILVKLVWKHKLHURJO\SKRIWKH3KLORVRSKHUV
6WRQHLQLWV ILUVWVWDWHEHFDXVHWKHVWRQHOLNHWKH



&RVPRSROLWHRU1RXYHOOH/XPLqUHFK\PLTXH7UDLWpGX6HOS3DULV-G
+RXU\

 ILVK LV ERUQ DQG OLYHV LQ ZDWHU $PRQJ WKH SDLQWLQJV RI WKH DOFKHPLFDO VWRYH PDGH E\ 3 + 3IDX LQWKHUHLVRQHRIDILVKHUPDQZLWKDOLQHGUDZLQJDILQHILVKIURPWKHZDWHU2WKHU DOOHJRULHV UHFRPPHQGHG FDWFKLQJ LW LQ D QHW ZKLFK LV DQ H[DFW SLFWXUH RI WKH PHVK IRUPHG RI LQWHUFURVVHG WKUHDGV UHSUHVHQWHG RQ RXU (SLSKDQ\ FDNHV /HW PH DOVR PHQWLRQ DQRWKHU HPEOHPDWLFIRUPZKLFKLVUDUHUEXWQROHVVLOOXPLQDWLQJ$WDIULHQG
VKRXVHZKHUH,ZDVLQYLWHG WRVKDUHWKLVFDNH,ZDVVRPHZKDWVXUSULVHGWRVHHLWGHFRUDWHGZLWKDQRDNWUHHZLWKVSUHDGLQJ EUDQFKHVLQVWHDGRIWKHXVXDOGLDPRQGSDWWHUQ7KHEDWKHUKDGEHHQUHSODFHGE\DFKLQDILVKDQG WKLVILVKZDVDVROH /DWVROVROLVWKHVXQ ,ZLOOH[SODLQWKHKHUPHWLFPHDQLQJRIWKHRDNODWHU ZKHQVSHDNLQJRIWKH*ROGHQ)OHHFH /HWPHDGGWKDWWKH&RVPRSROLWH
VIDPRXVILVKZKLFKKHFDOOV(FKLQHLVLVWKHRXUVLQ HFKLQXV VHD XUFKLQ WKH RXUVRQ /LWWOH %HDU  WKH FRQVWHOODWLRQ FRQWDLQLQJ WKH3ROH 6WDU 7KH IRVVLOL]HG VKHOOV RI VHD XUFKLQV ZKLFK DUH ZLGHO\ IRXQG KDYH WKHLU VXUIDFH UD\HG OLNH D VWDU 7KLV LV WKH UHDVRQZK\/LPRMRQGH6W'LGLHUDGYLVHVLQYHVWLJDWRUVWRGLUHFWWKHLUZD\
E\WKHVLJKWRIWKH QRUWKVWDU
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

 

.HSWLQWKHPXVHXPDW:LQWHUWKXU 6ZLW]HUODQG 

7KH SRSXODU H[SUHVVLRQ WR WDNH WKH FDNH PHDQV WR EH IRUWXQDWH 7KH RQH ZKR LV IRUWXQDWH HQRXJKWRILQGWKHEHDQLQWKHFDNHKDVQRIXUWKHUQHHGIRUDQ\WKLQJKHZLOOQHYHUODFNPRQH\ +HZLOOEHGRXEO\NLQJE\VFLHQFHDQGE\IRUWXQH

 0DUWLJQ\ UHSURGXFHV D FXULRXV SDLQWLQJ RI WKH FDWDFRPEV VKRZLQJ D ILVK VZLPPLQJ LQ WKH ZDYHVDQGEHDULQJRQLWVEDFNDEDVNHWFRQWDLQLQJVRPHORDYHVDQGDORQJUHGREMHFWZKLFKPD\ EHDYDVHIXOORIZLQH7KHEDVNHWERUQHE\WKHILVKLVWKHVDPHKLHURJO\SKDVWKHFDNH,WDOVRLV PDGHRILQWHUFURVVHGVWUDQGV:LWKRXWH[WHQGLQJWKHVHFRPSDULVRQVDQ\IXUWKHU,ZRXOGMXVWOLNH WRGUDZWKHDWWHQWLRQRIWKHFXULRXVWRWKHEDVNHWRI%DFFKXVFDOOHGFLVWD ZKLFKZDVFDUULHGE\ WKH &LVWRSKRUV LQ WKH %DFFKDQDOLDQ SURFHVVLRQV DQG
LQ ZKLFK
 )U 1RHO WHOOV XV
WKH PRVW P\VWHULRXVWKLQJZDVVKXWXS
 (YHQWKHYHU\SDVWU\RIWKHFDNHREH\VWKHODZVRIWUDGLWLRQDO,V\PERORJ\7KLVSDVWU\LVIODN\ DQGRXUOLWWOHEDWKHULVVKXWXSLQLWOLNHDERRNPDUNHU7KLVLVDQLQWHUHVWLQJFRQILUPDWLRQRIWKH PDWWHUUHSUHVHQWHGE\WKH(SLSKDQ\FDNH6HQGLYRJLXVWHOOVXVWKDWWKHSUHSDUHGPHUFXU\KDVWKH DVSHFWDQGIRUPRIDVWRQ\PDVVFUXPEO\DQGIODN\
,I\RXORRNDWLWFORVHO\
KHVD\V
\RXZLOO QRWLFHWKDWLWLVDOOIODN\
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

   

0DUWLJQ\'LFWLRQQDLUHGHV$QWLTXLWH
VFKUH
WLHQQHVDUW(XFKDULVWLHQGHGLWLRQS )Q1RHO'LFWLRQQDLUHGHOD)DEOH3DULV/H1RUUQDQW

 ZLWKLWVPDUYHOORXVFORLVRQQp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
V VNLQ LV O\LQJ RQ D SURMHFWLQJ URFN JXDUGHG E\ D GUDJRQ ZKRVH PHQDFLQJ VLOKRXHWWHVWDQGVRXWDJDLQVWWKHVN\-DVRQKLPVHOIXVHGWREHUHSUHVHQWHGDWWKHIRRWRIDQRDN WUHH EXW WKLV SDUW RI WKH FRPSRVLWLRQ ZKLFK ZDV QR GRXEW ORRVHO\ FRQQHFWHG KDV EHFRPH GHWDFKHGIURPWKHZKROH SO;/,,,  7KH IDEOH RI WKH *ROGHQ )OHHFH LV D FRPSOHWH UHSUHVHQWDWLRQ RI WKH KHUPHWLF SURFHVV ZKLFK UHVXOWV LQ WKH 3KLORVRSKLF VWRQH ,Q WKH ODQJXDJH RI WKH $GHSWV WKH WHUP *ROGHQ )OHHFH LV DSSOLHGWRWKH

 

&I$OFKLPLHRSFLW

 PDWWHU SUHSDUHG IRU WKH :RUN DV ZHOO DV WR WKH ILQDO UHVXOW 7KLV LV YHU\ H[DFW VLQFH WKHVH VXEVWDQFHVGLIIHURQO\LQSXULW\IL[LW\DQGPDWXULW\7KH3KLORVRSKHUV
6WRQHDQGWKH3KLORVRSKLF 6WRQH DUH WKHQ WZR WKLQJV VLPLODU LQ NLQG DQG RULJLQ EXW WKH ILUVW LV UDZ ZKLOH WKH VHFRQG ZKLFKLVGHULYHGIURPLWLVSHUIHFWO\FRRNHGDQGGLJHVWHG7KH*UHHNSRHWVWHOOXVWKDW
=HXVZDV VRSOHDVHGZLWKWKHVDFULILFHPDGHLQKLVKRQRXUE\3KU\[RVWKDWKHGHVLUHGWKDWDOOWKRVHZKR KDGWKLVIOHHFHVKRXOGOLYHLQDEXQGDQFHIRUDVORQJDVWKH\NHSWLWEXWWKDWHYHU\RQHVKRXOGEH DOORZHGWRWU\WRZLQLW
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
V 0LON ODF YLUJLQLV  7KHUHIRUH EURWKHUV LI \RX SD\ DWWHQWLRQ WR ZKDW,KDYHVDLGDERXWWKH(SLSKDQ\FDNH JDOHWWHGHV5RLV DQGLI\RXNQRZZK\WKH(J\SWLDQV GHILHGWKHFDW\RXZLOOQRORQJHUKDYHDQ\GRXEWDERXWWKH

 

0DQXGXFWLRDG&RHOXPFKHPLFXP$PVWHORGDPLDS-:DHVEHUJLRV

 VXEMHFWZKLFK\RXPXVWFKRRVHLWVFRPPRQQDPHZLOOEHFOHDUO\NQRZQWR\RX<RXZLOOWKHQ EH LQ SRVVHVVLRQ RI WKLV &KDRV RI WKH :LVH
LQ ZKLFK DOO KLGGHQ VHFUHWV H[LVW LQ SRWHQWLDO
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

7ZRH[DPSOHVRIFRPSDUDEOHWUHDWPHQWRILQLWLDU\VXEMHFWVDUHWREHIRXQGRQWZRZRQGHUIXO FHLOLQJV 2QH RI WKHP D VFXOSWXUH RI WKH VL[WHHQWK FHQWXU\ LV DW 'DPSLHUUHVXU%RXWRQQH /HV 'HPHXUHV 3KLORVRSKDOHV  7KH RWKHU H[DPSOH D SDLQWHG FHLOLQJ RI WKH ILIWHHQWK FHQWXU\ LV DW 3OHVVLV%RXUUp 'HX[/RJLV$OFKLPLTXHV 
 

7UDQVODWRU
V QRWH &DSXW PRUWXXP GHDG KHDG DOFKHPLFDO WHUP IRU UHVLGXXP RI D VXEVWDQFH DIWHUGLVWLOODWLRQRUVXEOLPDWLRQ
 

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

 DVWUDQJHPRWLILWLVIRUDFKDSHOLVDOLWWOHER\XULQDWLQJIUHHO\LQWRKLVVDERW7KHUHWKHVDPH FKLOGNQHHOLQJEHVLGHDSLOHRIIODWLQJRWVLVKROGLQJDQRSHQERRNZKLOHDWKLVIHHWOLHVDGHDG VQDNH ,6KDOO,VWRSRUJRRQ",KHVLWDWH$GHWDLOVKRZLQJLQWKHKDOIOLJKWRIWKHPRXOGLQJV GHWHUPLQHVWKHPHDQLQJRIWKLVOLWWOHEDVUHOLHI7KHWRSSLHFHRIWKHSLOHEHDUVWKHVWDUVHDO RI 6RORPRQWKHPDJLFLDQNLQJ%HORZLVPHUFXU\DERYHWKH$EVROXWH7KHSURFHGXUHLVVLPSOHDQG FRPSOHWHDOORZLQJRQO\RQHZD\UHTXLULQJRQO\RQHPDWWHUGHPDQGLQJRQO\RQHRSHUDWLRQ


+H ZKRNQRZVKRZWRGRWKH:RUNE\WKHRQHDQGRQO\PHUFXU\KDVIRXQGWKHPRVWSHUIHFWWKLQJ
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

)XOFDQHOOLLVKHUHXVLQJWKHSRVWVFULSWWRWKHOHWWHUZKLFKKHFDUULHGDERXWZLWKKLPIRUPDQ\ \HDUVDQGZKLFKLVUHSURGXFHGLQIXOOLQWKHVHFRQG3UHIDFHRI
 

 SODFHG LQ WKH KROORZ RI RXU IDPRXV VFDOORS VKHOO WKURZLQJ LQ IURQW RI KLP WLQ\ VKHOOV ZKLFK VHHPWRKDYHFRPHIURPWKHELJRQH:HDOVRVHHWKHRSHQERRNFRQVXPHGE\ILUHWKHUDGLDQW DQGIODPER\DQWGRYHVXUURXQGHGE\DQDXUHROHV\PERORIWKH6SLULWWKHILHU\FURZSHUFKHGRQ WKHVNXOOZKLFKLWLVSHFNLQJDFRPSRVLWHSLFWXUHRIGHDWKDQGSXWUHIDFWLRQWKHDQJHO
VSLQQLQJ WKH ZRUOG
 OLNHD WRS ZKLFKLVD VXEMHFW WDNHQXSDQG GHYHORSHG IXUWKHULQD OLWWOH ERRNFDOOHG 7\SXV 0XQGL  WKH ZRUN RI VRPH -HVXLW IDWKHUV SKLORVRSKLF FDOFLQDWLRQ V\PEROL]HG E\ D SRPHJUDQDWHVXEMHFWHGWRWKHDFWLRQRIILUHLQDYDVHRIJROGVPLWK
VZRUNDERYHWKHFDOFLQDWHG ERG\ WKH ILJXUH  PD\ EH VHHQ IROORZHG E\ WKH OHWWHU 5 ZKLFK LQGLFDWHV WR WKH DUWLVW WKH QHFHVVLW\ RI WKUHH UHSHWLWLRQV RI WKH VDPH SURFHGXUH RQ ZKLFK , KDYH VHYHUDO WLPHV LQVLVWHG )LQDOO\ WKH IROORZLQJ LPDJH UHSUHVHQWV WKH OXGXV SXHURUXP PHQWLRQHG LQ 7ULPRVLQ
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
SLOJULPVRUKRO\ZDWHU FRQWDLQHU

 

0XQGL$SXG-RDQ&QREEDHUW

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
KHZKRKDVWKH PDWWHUZLOOHDVLO\ILQGDSRWWRFRRNLWLQ
,PDLQWDLQRQWKHFRQWUDU\DQG\RXPD\KDYHIDLWKLQ P\VLQFHULW\WKDWLWZLOOEHLPSRVVLEOHWRREWDLQWKHVOLJKWHVWVXFFHVVLQWKH:RUNLI\RXGRQRW NQRZ SHUIHFWO\ ZKDW WKLV 3KLORVRSKHUV
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

 WKHVXOSKXURIWKHUHDOJDURULWVDUVHQLFZKLFKDUHVLPLODURUGLIIHUHQWDFFRUGLQJWRZKHWKHU\RX FRQVLGHUWKHVXOSKXUDQGWKHDUVHQLF,VHSDUDWHO\RUFRPELQHGLQWKHUHDOJDU,QWKLVZD\WKH5(5 ZLOOEHREWDLQHGE\DXJPHQWLQJWKHUHDOJDUZLWKVXOSKXUZKLFKLVFRQVLGHUHGDVIRUPLQJKDOIWKH UHDOJDURUZLWKDUVHQLFZKLFKLVVHHQDVWKHRWKHUKDOILQWKHVDPHUHGVXOSKLGH +HUHLVVRPHPRUHDGYLFHVHHNILUVWWKH5(5WKDWLVWRVD\WKHYHVVHO$IWHUWKDWWKH5(5(ZLOO HDVLO\EHUHFRJQL]DEOHWR\RX7KH6LE\OOZKHQDVNHGZKDWD3KLORVRSKHUZDVUHSOLHG


,WLVD PDQZKRNQRZVKRZWRPDNHJODVV
$SSO\\RXUVHOIWRPDNLQJLWDFFRUGLQJWRRXUDUWZLWKRXW SD\LQJ WRR PXFK DWWHQWLRQ WR WKH SURFHVVHV RI JODVVPDNLQJ 7KH SRWWHU
V FUDIW ZRXOG EH PRUH LQVWUXFWLYHIRU\RX/RRNDW3LFROSDVVL
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

&ODXGLXV3RSHOLQ/HV7URLV/LYUHVGH,
$UWGX3RWLHUE\WKH.QLJKW&\SULDQ3LFFROSDVVL3DULV /LEUDLULH,QWHUQDWLRQDOH
 

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

7KH&\FOLF&URVV RI+HQGD\H

 +HQGD\HDVPDOOIURQWLHUWRZQLQWKH%DVTXHFRXQWU\KDVLWVOLWWOHKRXVHVKXGGOHGDWWKHIRRWRI WKH ILUVW VSXUV RI WKH 3\UHQHHV ,W LV IUDPHG E\ WKH JUHHQ RFHDQ WKH EURDG VZLIW DQG VKLQLQJ %LGDVVRDDQGWKHJUDVV\KLOOV2QHVILUVWLPSUHVVLRQRQVHHLQJWKLVURXJKDQGUXJJHGODQGVFDSH LVDUDWKHUSDLQIXODQGDOPRVWKRVWLOHRQH2QWKHKRUL]RQRYHUWKHVHDWKHQDWXUDODXVWHULW\RI WKHZLOGVFHQHLVVFDUFHO\UHOLHYHGE\WKHKHDGODQGRI)XHQWHUUDELDVKRZLQJRFKUHLQWKHFUXGH OLJKW WKUXVWLQJ LQWR WKH GDUN JUH\LVKJUHHQ PLUURUFDOP ZDWHUV RI WKH JXOI $SDUW IURP WKH 6SDQLVK FKDUDFWHU RI LWV KRXVHV WKH W\SH RI GLDOHFW RI WKH LQKDELWDQWV DQG WKH YHU\ VSHFLDO DWWUDFWLRQRIDQHZEHDFKEULVWOLQJZLWKSURXGYLOODV+HQGD\HKDVQRWKLQJWRKROGWKHDWWHQWLRQ RIWKHWRXULVWWKHDUFKDHRORJLVWRUWKHDUWLVW /HDYLQJWKHVWDWLRQDFRXQWU\URDGVNLUWLQJWKHUDLOZD\OLQHOHDGVWRWKHSDULVKFKXUFKVLWXDWHG LQWKHPLGGOHRIWKHYLOODJH7KLVFKXUFKZLWKLWVEDUHZDOOVDQGLWVPDVVLYHVTXDWUHFWDQJXODU WRZHU VWDQGV LQ D VTXDUH D IHZ VWHSV DERYH JURXQG OHYHO DQG ERUGHUHG E\ OHDI\ WUHHV ,W LV DQ RUGLQDU\GXOOEXLOGLQJZKLFKKDVEHHQUHQRYDWHGDQGLVRIQRSDUWLFXODULQWHUHVW+RZHYHUQHDU WKH VRXWK WUDQVHSW WKHUH LV D KXPEOH VWRQH FURVV DV VLPSOH DV LW LV VWUDQJH KLGLQJ DPLGVW WKH JUHHQHU\RIWKHVTXDUH,WZDVIRUPHUO\LQWKHSDULVKFHPHWHU\DQGLWZDVRQO\LQWKDWLWZDV EURXJKWWRLWVSUHVHQWVLWHQHDUWKHFKXUFK$WOHDVWWKDWLVZKDWZDVWROGPHE\DQROG%DVTXH PDQZKRKDGIRUPDQ\\HDUVDFWHGDVVH[WRQ$VIRUWKHRULJLQRIWKLVFURVVLWLVXQNQRZQDQG, ZDVQRWDEOHWRREWDLQDQ\LQIRUPDWLRQDWDOODERXWWKHGDWHRILWVHUHFWLRQ+RZHYHUMXGJLQJE\ WKHVKDSHRIWKHEDVHDQGWKHFROXPQ,ZRXOGQRW WKLQNWKDWLWFRXOGEHEHIRUHWKHHQGRIWKH VHYHQWHHQWKRUEHJLQQLQJRIWKHHLJKWHHQWKFHQWXU\:KDWHYHULWVDJHWKH+HQGD\HFURVVVKRZV E\WKHGHFRUDWLRQRILWVSHGHVWDOWKDWLWLVWKHVWUDQJHVWPRQXPHQWRISULPLWLYHPLOOHQDULVPWKH UDUHVWV\PEROLFDOWUDQVODWLRQRIFKLOLDVP ZKLFK,KDYHHYHUPHW,WLVNQRZQWKDWWKLVGRFWULQH ILUVWDFFHSWHGDQGWKHQUHIXWHGE\2ULJHQ6W'HQLVRI$OH[DQGULDDQG6W-HURPHDOWKRXJKLWKDG QRW EHHQ FRQGHPQHG E\ WKH &KXUFK ZDV SDUW RI WKH HVRWHULF WUDGLWLRQ RI WKH DQFLHQW KHUPHWLF SKLORVRSK\ 7KHQDLYHW\RIWKHEDVUHOLHIVDQGWKHLUXQVNLOOIXOH[HFXWLRQOHDGRQHWRVXSSRVHWKDWWKHVHVWRQH HPEOHPV ZHUH QRW WKH ZRUN RI D SURIHVVLRQDO VFXOSWRU EXW DHVWKHWLF FRQVLGHUDWLRQV DSDUW ZH PXVW UHFRJQL]H WKDW WKH XQNQRZQ ZRUNPDQ ZKR PDGH WKHVH LPDJHV SRVVHVVHG UHDO DQG SURIRXQGNQRZOHGJHRIWKHXQLYHUVH 2QWKHWUDQVYHUVHDUPRIWKHFURVVD*UHHNFURVVLVIRXQGWKHIROORZLQJLQVFULSWLRQFRQVLVWLQJRI WZRVWUDQJHSDUDOOHOOLQHVRIUDLVHGOHWWHUVIRUPLQJZRUGVDOPRVWUXQQLQJLQWRHDFKRWKHULQWKH VDPHRUGHUDV,JLYHKHUH 2&58;$9(6 3(681,&$

 7UDQVODWRUVQRWHPLOOHQDULVPFKLOLDVPGRFWULQHRIEHOLHILQWKHPLOOHQLXP

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pFULWTXHODYLHVHUpIXJLHHQXQ VHXO HVSDFH ,W LV ZULWWHQ WKDW OLIH WDNHV UHIXJH LQ D VLQJOH VSDFH  DQG ZH OHDUQ WKDW D FRXQWU\ H[LVWV ZKHUH GHDWK FDQQRW UHDFK PDQ DW WKH WHUULEOH WLPH RI WKH GRXEOH FDWDFO\VP $V IRU WKH JHRJUDSKLFDOORFDWLRQRIWKLVSURPLVHGODQGIURPZKLFKWKHpOLWHZLOOWDNHSDUWLQWKHUHWXUQRI WKHJROGHQDJHLWLVXSWRXVWRILQGLW)RUWKHp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

 /DWLQVSDWLXUQZLWKWKHPHDQLQJRISODFHVLWXDWLRQJLYHQWRLWE\ 7DFLWXV,WFRUUHVSRQGVWRWKH
*UHHN

&! URRW &!.FRXQWU\WHUULWRU\

 FURVV IL[LQJ WKH SROH RI WKH QRUWKHUQ KHPLVSKHUH DQG ORFDWLQJ LQ WLPH WKH IDWDO SHULRG RI WKLV H[SLDWLRQ*RGWKH)DWKHUKROGVLQKLVKDQGWKLVJOREHVXUPRXQWHGE\WKH ILHU\VLJQ7KHIRXU JUHDW DJHV KLVWRULFDO UHSUHVHQWDWLRQV RI WKH IRXU DJHV RI WKH ZRUOG KDYH WKHLU VRYHUHLJQV VKRZQKROGLQJWKLVVDPHDWWULEXWH7KH\DUH$OH[DQGHU$XJXVWXV&KDUOHPDJQHDQG/RXLV;,9   ,WLV WKLV ZKLFK H[SODLQVWKH LQVFULSWLRQ ,15,H[RWHULFDOO\ WUDQVODWHG DV,HVXV1D]DUHQXV 5H[ ,XGHRUXP -HVXVRI1D]DUHWK.LQJRIWKH-HZV EXWZKLFKJLYHVWRWKHFURVVLWVVHFUHWPHDQLQJ ,JQH1DWXUD5HQRYDWXU,QWHJUD %\ILUHQDWXUHLVUHQHZHGZKROH )RULWLVE\ILUHDQGLQILUHWKDW RXUKHPLVSKHUHZLOOVRRQEHWULHG$QGMXVWDVE\PHDQVRIILUHJROGLVVHSDUDWHGIURPLPSXUH PHWDOV VR 6FULSWXUH VD\V WKH JRRG ZLOO EH VHSDUDWHG IURP WKH ZLFNHG RQ WKH JUHDW 'D\ RI -XGJPHQW 2QHDFKRIWKHIRXUVLGHVRIWKHSHGHVWDODGLIIHUHQWV\PEROLVWREHVHHQ2QHKDVWKHLPDJHRI WKHVXQDQRWKHURIWKHPRRQWKHWKLUGVKRZVDJUHDWVWDUDQGWKHODVWDJHRPHWULFILJXUHZKLFK DV,KDYHMXVWVDLGLVQRQHRWKHUWKDQWKHGLDJUDPXVHGE\WKHLQLWLDWHVWRLQGLFDWHWKHVRODUF\FOH ,WLVDVLPSOHFLUFOHGLYLGHGLQWRIRXUVHFWRUVE\WZRGLDPHWHUVFXWWLQJHDFKRWKHUDWULJKWDQJOHV 7KHVHFWRUVHDFKEHDUDQ$ZKLFKVKRZVWKDWWKH\VWDQGIRUWKHIRXUDJHVRIWKHZRUOG7KLVLVD FRPSOHWHKLHURJO\SKRIWKHXQLYHUVHFRPSRVHGRIWKHFRQYHQWLRQDOVLJQVIRUKHDYHQDQGHDUWK WKHVSLULWXDODQGWKHWHPSRUDOWKHPDFURFRVPDQGWKHPLFURFRVPLQZKLFKPDMRUHPEOHPVRI WKHUHGHPSWLRQ FURVV DQGWKHZRUOG FLUFOH DUHIRXQGLQDVVRFLDWLRQ ,QPHGLHYDOWLPHVWKHVHIRXUSKDVHVRIWKHJUHDWF\FOLFSHULRGZKRVHFRQWLQXRXVURWDWLRQZDV H[SUHVVHG LQ DQWLTXLW\ E\ PHDQV RI D FLUFOH GLYLGHG E\ WZR SHUSHQGLFXODU GLDPHWHUV ZHUH JHQHUDOO\ UHSUHVHQWHG E\ WKHIRXU HYDQJHOLVWV RU E\ WKHLU V\PEROLF OHWWHUZKLFK ZDV WKH *UHHN DOSKDRUPRUHRIWHQVWLOOE\WKHIRXUHYDQJHOLFDOEHDVWVVXUURXQGLQJ&KULVWWKHOLYLQJKXPDQ UHSUHVHQWDWLRQ RI WKH FURVV 7KLV LV WKH WUDGLWLRQDO IRUPXOD ZKLFK RQH PHHWV IUHTXHQWO\ RQ WKH W\PSDQDRI5RPDQSRUFKHV-HVXVLVVKRZQWKHUHVHDWHGKLV

 7KHILUVWWKUHHDUHHPSHURUVWKHIRXUWKLVRQO\DNLQJWKH6XQ.LQJWKXVLQGLFDWLQJWKHGHFOLQHRI
WKHVWDUDQGLWVODVWUDGLDWLRQ7KLVLVGXVNWKHIRUHUXQQHURIWKHORQJF\FOLFQLJKWIXOORIKRUURUDQG WHUURUWKHDERPLQDWLRQRIGHVRODWLRQ

 OHIWKDQGUHVWLQJRQDERRNKLVULJKWUDLVHGLQWKHJHVWXUHRIEHQHGLFWLRQDQGVHSDUDWHGIURPWKH IRXUEHDVWVZKLFKDWWHQGKLPE\DQHOOLSVHFDOOHGWKHP\VWLFDOPRQG7KHVHJURXSVZKLFKD JHQHUDOO\LVRODWHGIURPRWKHUVFHQHVE\DJDUODQGRIFORXGVDOZD\VKDYHWKHLUILJXUHVSODFHGLQ WKHVDPHRUGHUDVPD\EHVHHQLQWKHFDWKHGUDOVRI&KDUWUHV UR\DOSRUWDO DQG/H0DQV ZHVW SRUFK  LQ WKH &KXUFK RI WKH 7HPSODUV DW /X] +DXWHV 3\UpQp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

 5HYHODWLRQFKOYYDQG  (]HNLHOFK,YDQG

 XWPRVWGHJUHHRIIHHEOHQHVVDQGVHQLOLW\LWLVVFDUFHO\DEOHWRVWDQGEDODQFLQJRQRQO\RQHOHJ,W LVWKHIRXUWKDQGODVWDJH.DOL<XJDWKHDJHRIPLVHU\PLVIRUWXQHDQGGHFUHSLWXGH 7KHDJHRILURQKDVQRRWKHUVHDOWKDQWKDWRI'HDWK,WVKHLURJU\SKLVWKHVNHOHWRQEHDULQJWKH DWWULEXWHVRI6DWXUQWKHHPSW\KRXUJODVVV\PERORIWLPHUXQRXWDQGWKHVF\WKHUHSURGXFHGLQ WKH ILJXUH VHYHQ ZKLFK LV WKH QXPEHU RI WUDQVIRUPDWLRQ RU GHVWUXFWLRQ RI DQQLKLODWLRQ 7KH *RVSHORIWKLVIDWDODJHLVWKHRQHZULWWHQXQGHUWKHLQVSLUDWLRQRI6W0DWWKHZ0DWWKDHXV*UHHN .2. " FRPHVIURP ..2 "ZKLFKPHDQVVFLHQFH7KLVZRUGKDVJLYHQ 1"10&"VWXG\NQRZOHGJHIURP.0 WROHDUQ,WLVWKH*RVSHODFFRUGLQJ WR6FLHQFHWKHODVWRIDOOEXWIRUXVWKHILUVWEHFDXVHLWWHDFKHVXVWKDWVDYHIRUDVPDOOQXPEHU RIWKHpOLWHZHPXVWDOOSHULVK)RUWKLVUHDVRQWKHDQJHOZDVPDGHWKHDWWULEXWHRI6W0DWWKHZ EHFDXVHVFLHQFHZKLFKDORQHLVFDSDEOHRISHQHWUDWLQJWKHP\VWHU\RIWKLQJVRIEHLQJVDQGWKHLU GHVWLQ\FDQJLYHPDQZLQJVWRUDLVHKLPWRNQRZOHGJHRIWKHKLJKHVWWUXWKVDQGILQDOO\WR*RG

 3/$7(6

;/9,,+(1'$<( %DVVHV3\UpQpHV &\FOLF&URVV





;/9,,,&<&/,&&52662)+(1'$<( 7KHIRXU6LGHVRIWKH3HGHVWDO

&RQFOXVLRQ



6FLUH3RWHUH$XGHUH7DFHUH =252$67(5
1DWXUHGRHVQRWRSHQWKHGRRURIWKHVDQFWXDU\LQGLVFULPLQDWHO\WRHYHU\RQH ,Q WKHVH SDJHV WKH XQLQLWLDWHG ZLOO SHUKDSV GLVFRYHU VRPH SURRI RI D JHQXLQH DQG SRVLWLYH VFLHQFH , GR QRW KRZHYHU IODWWHU P\VHOI WKDW , VKDOO FRQYHUW WKHP IRU , NQRZ IXOO ZHOO WKH REVWLQDF\RISUHMXGLFHDQGWKHJUHDWVWUHQJWKRISUHFRQFHLYHGRSLQLRQV7KHGLVFLSOHZLOOGHULYH JUHDWHU EHQHILW IURP WKLV ERRN SURYLGHG DOZD\V WKDW KH GRHV QRW GHVSLVH WKH ZRUNV RI WKH ROG 3KLORVRSKHUVDQGWKDW

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

 ZKHQ KLV GHVLUHV KDYH EHHQ DFFRPSOLVKHG WKH :LVH 0DQ GHVSLVLQJ WKH YDQLWLHV RI WKH ZRUOG ZLOOGUDZQHDUWRWKHKXPEOHWKHGLVLQKHULWHGWRDOOWKRVHZKRZRUNVXIIHUVWUXJJOHDQGZHHS KHUHEHORZ$VDQDQRQ\PRXVDQGGXPEGLVFLSOHRIHWHUQDO1DWXUHDQDSRVWOHRIHWHUQDO&KDULW\ KHZLOOUHPDLQIDLWKIXOWRKLVYRZRIVLOHQFH ,Q6FLHQFHLQ*RRGQHVVWKH$GHSWPXVWHYHUPRUH .((36,/(17

,1'(;

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

%HUWKHORW 0DUFHOLQ  %LJDUQH &K  %LUGRI+HUPHV %ODFNFORXG %ODFNKHQ %ODFNSLWFK %ODFNVWRQHIDOOHQIURPKHDYHQ %OHVVHGRQHVRULQLWLDWHV %RHVZLOOZDOG (  %RQHWW\ $  %RRNZLWKOHDYHV %ULDUHXV %XOO &DEDODSKRQHWLF &DERW &DGPXVDQGWKHVHUSHQW &DOFLQDWLRQ &DOOLPDFKXV &DPEULHO /3)UDQaRLV  &DQGOHVJUHHQ &DVWDLJQH 53GH  &DW &DYHUQRIWKH5RFN &HOHVWLDOGHZ &HQWDXU &KDERW &KDOFLGLXV &KDPSDJQH -XOLHQ  &KDRVPHWDOOLFFKDRVRIWKH:LVH  &KDRVSULPLWLYH &KDULW\ &KDXGHW &KHYDOLHU,QFRQQX OH  &KLOGGLYLQH &KLOGRI6DWXUQ &KLOGWKHEHJLQQLQJDQGWKHHQG

 &KLOGUHQRIWKHVXQ &KLOG


VSOD\ OXGXVSXHURUXP  &KULVWRSKHU FDEDOD  &LPLH] &LPPHULDQGDUNQHVV &ODYHV *DVWRQGH  &RDWRIDUPVV\PEROLF &RFNDQGIR[ &RFNFURZ &RKREDWLRQ &ROIV -)  &RORXUEODFN &RORXUUHG &RORXUZKLWH &RORXUVHOHPHQWDO &RORXUVV\PEROLFDORIWKH*UHDW:RUN  &RQFHSWLRQ &RQGHQVDWLRQRIWKHXQLYHUVDOVSLULW  &RQMXQFWLRQ &RQVWDQWLQH &RUPRQW 5HQDXOWDQG7KRPDVGH  &RUQHLOOH 7KRPDV  &RUQHUVWRQH &RUUHVSRQGDQFHRIPHWDOOLFSODQHWV &RVPLFPDJLF &RVPRSROLWH WKH   &RXUWODQJXDJH &RXUWRI0LUDFOHV &URVV &URVVVWDUUHG &URZEODFN &URZRI1RWUH'DPH &URZ
VKHDG &UXFLEOH &UX[DQVDWD &U\SWVRIFDWKHGUDOV &XPOXFHVDOXWHP &\OLDQL &\UDQRGH%HUJHUDF 'DYLG /RXLV  'DXSKLQ 'HPHWULXV 'HPHXUHV3KLORVRSKDOHV
 'HVSDUWHV -DFTXHV  'HX[/RJLV$OFKLPLTXHV
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

 ([WUDFWLRQRIVXOSKXU )DLWKIXOVHUYDQW )DVWLQJPDQRI1RWUH'DPH )HDVWRIWKH'RQNH\ )HDVWRI)RROV )LUHRIWKHZKHHO )LUHVHFUHW )LUHVXEWHUUDQHDQ )LVK
VH\HV )LVKV\PEROLF )ODJ)UHQFK )ODJHOODWLRQRIWKH$OOHOXLD )ODPER\DQW*RWKLF )ODPH 1LFKRODV   )ODPPDULRQ &DPLOOH +HURGRWXV )ORZHUKHDYHQO\+LHURSKDQW )RUWUHVVDOFKHPLFDO+LUDP PDVRQLF   )RXOVPHOO+ROPDW )RXQWDLQRI<RXWK+RO\ZDWHU FRQWDLQHUV )RXQWDLQP\VWHULRXV+RUXVDQG 7\SKRQ )UDWHUQLWLHVVHFUHW+RXVHRI*ROG )XOFDQHOOL+XJLQXV%%DUPD  )XQGDPHQWFHOHVWLDO *DOO,QIDQWHULHGLMRQQDLVH *D\VFLHQFHJD\NQRZOHGJH ,QLWLDWRUOR *HEHU,15, *HIIUR\'HFKDXPH,VLVSURWRW\SHRI EODFNYLUJLQV *HQHUDWLRQ *LGHRQ
VIOHHFH-DFTXHV&RHXU *LIWRI*RG-DFTXHV&RHXU
VKRXVH  *ODVV-RKQ
VEODFNELUG *ODVVRI/RUUDLQH-RXUGDLQDQG'XYDO  *ODVVPDWUDVV-XOLXV$IULFDQXV *RELQHDXGH0RQWOXLVDQW (VSULW  *RKRUQ\ -HDQ .HQQLV *ROGP\VWLF.KXQUDWK +HLQULFK  *ROGLQLWVEDWK.LQJOHW *ROGHQIOHHFH *RRGWLGLQJVJRRGQHZV/DERUGH GH  *RRVH/DERXURI+HUFXOHV *RWKLFDUW/DERXUHU *UDVVHWG
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

 /HSHUVFXULQJRI /HSURV\PLQHUDO /LEHWKUDRI0DJQHVLD /LWEDXW -HDQ  /LPRMRQGH6W'LGLHU /LQWKDXW +HQULGH  /LRQ /LRQUHG /LRQJUHHQ /LWWOHZRUOG /LIHKLGGHQLQPDWWHU /RGHVWRQHSKLORVRSKLFRUPDJQHW  /RVWZRUGYHUEXPGLPLVVXP /XFLIHU /XOO\ 5D\PRQG  0DGPRWKHU 0DJLZLVHPHQ 0DJLVWHU\ 0DJQHVLDRIWKH:LVH 0DQJLQGH5LFKHERXUJ -  0DUNGLYLQH 0DUWLJQ\ 0DVVDFUHRIWKH,QQRFHQWV 0DVWHUVWRQH 0DWULFHV 0DWWHURIWKH:LVH 0HGLFLQHRIWKHWKUHHRUGHUV 0HODUQSXV 0HUFXU\DQLPDWHG 0HUFXU\FRPPRQRIWKHSKLORVRSKHUV  0HUFXU\SKLORVRSKLF 0HVVLUH/H*ULV 0U*UH\  0HWDOOLFQDWXUHV 0HWDOOLFVHHG 0LONDQGEORRG 0LQHUDOWKHRSKDQ\ 0LQLVWHURIWKHDOWDU 0LUURURIWKHDUW 0LUURURI0DUV 0RGKDOODP 0ROWHQOHDG 0RRQVSLW 0RUDVGH5HVSRXU 0RULHQ 0RUWLILFDWLRQRI0HUFXU\ 0RWKHURIWKHJRGV 0RWKHUWRQJXH 0RXQWRI9LFWRU\ 0XOODFKLXV 0XOWLSOLFDWLRQVRIWKHVWRQH 0\VWHULRXVSDODFH 1D[DJRUDV 1RHO )U  1RHOGX)DLO 1RVWRF 1RWUH'DPHGH&RQIHVVLRQ 1RWUH'DPHGX3LOLHU 1RWUH'DPHVRXV7HUUH 1X\VHPHQW GH  2DNKROORZ 2DNDQGUDP 2DNRQWKH(SLSKDQ\FDNH 2EHGLHQFH 2EVFXULW\FRPSOHWH 2ULHQWDWLRQRIFKXUFKHV 2VLULVEODFN 3DUDFHOVXV 3DULVFDWKHGUDO 3%UH$EUDKDP 3HUQHW\ 'RP$-  3IDX 3+  3KHDVDQW 3KLGLDV 3KLODOHWKHV (\UHQHXV   3KLORVRSKHUV
OHDG 3KLORVRSKLFHJJ 3KRHELJHQXV 3KRHQL[ 3KU\JLDQFDS 3KWDKWKHUHJHQHUDWRU 3LFFRORSDVVL &\SULDQ  3LHUUHGH&RUEHLO

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

 6RORPRQ 6RORPRQ


VVHDO 6ROYHHWFRDJXOD 6RQRI6DWXUQ 6RQRIWKHVXQ 6RXOPHWDOOLF 6SLULWRIWKHJUHHQOLRQ 6SLULWVRIVDOW 6WDUDQGFRQFHSWLRQ 6WDUKHUPHWLF 6WDURI-DFRE 6WDURIWKH0DJL 6WDURIWKHPRUQLQJ 6WDUQRFWXUQDO 6WDURIWKHVHD 6WDUWHUUHVWLDO 6WDUVWZR 6WHHOPDJLF 6WHHOSKLORVRSKLF 6WRQHZKLFKLVQRWVWRQH 6WXDUWGH&KHYDOLHU 6DELQH  6XEMHFWRIWKH:LVH 6XEOLPDWLRQV 6XOSKXUHPERGLHG 6XOSKXUSKLORVRSKLF 6XOSKXUSULQFLSOH 6XQPRRQDQGVWDUV 6ZDQRI+HUPHV 6ZLIW -RQDWKDQ  7HPSHUDWXUHRIILUH 7KDOHVRI0LOHWXV 7KUHDGRI$ULDGQH 7LFLQHQVLV 7LQFWRULDOPDVV 7LUHVLDV 7ROOLXV -DFREXV  7RUFKEHDUHU 7RXVVDLQW 7RZHURI%DEHO 7UDGLWLRQ 7UDYHOOHUV\QRQ\PRI0HUFXU\ 7UHDVXUHRIWUHDVXUHV 7UHHRIOLIH 7UHHVRODU 7U&PHOOHV 7ULVPRVLQ 6RORPRQ  7ULVWDQDG,VROGH 7ULXPSKDOFKDULRWRI%DFFKXV 8QLYHUVDOVROYHQW 8QLYHUVDOVSLULW 9DORLV 1LFKRODV  9DUUR 9DVHRIWKHDUWDQGRIQDWXUH 9DVHRIWKHVSLULW 9HJHWDEOHVWRQH 9HUEXPGLPLVVXP 9HVVHORIWKH*UHDW:RUN 9LFWRU+XJR 9LJHQNUH %ODLVHGH  9LOODLQ $EE&  9LOORQ )UDQTRLV  9LQFHQV &KDUOHV  9LQFHVODV/DYLQLXVRI0RUDYLD 9LQHJDUPHUFXULDO 9LROOHWOH'XF 9LUJLQFHOHVWLDO 9LUJLQPRWKHU 9LUJLQP\VWLFDO 9LUJLQVEODFN 9LUJLQ
VPLON 9LUWXHXUDQRGLXUQDO 9LWULRO 9LWULROJUHHQRIWKH:LVH 9LWULROYHJHWDEOH 9LWXOXV$XUHXV
 9RUDJLQH -DFTXHVGH  9R\RXVYR\DQWV 9XOFDQ :DWHUEXUQLQJRUILHU\ :DWHUGU\ZKLFKGRHVQRWZHWWKHKDQGV  :DWHURIOLIH :DWHUSRQWLF :DWHUSULPLWLYH :D\VPRLVWDQGGU\ :HVW

 :LWNRZVNL *-  :KHHI :KLWHVWRQH :RUNE\WKHRQHDQGRQO\PHUFXU\ =DFKDLUH 'HQ\V  =DFFKDHXV =DGLWK 6HQLRU  =RGLDF =RURDVWHU

You might also like