Download as pdf or txt
Download as pdf or txt
You are on page 1of 124

'HVNWRS5HFHLYHU

%DVH7UDQVFHLYHUV $PDWHXU5DGLRV
²
6FDQQHUV
6:/ 6'5
²
'LJLWDO3DFNHW
$OO0RGH5(&(,9(5 5DGLR&RQWURO
';57²&DOO 
$OO0RGH75$16&(,9(5 N+]0+]
$QDORJ'LJLWDO+\EULG 66%&:$0)0,4 $XGLR .H\HUV
0RQLWRU6:/VLJQDOVIURPDYLDWLRQQDYLJDWLRQDQGGDWD 
';657²&DOO VRXUFHV
N+]0+] ‡ ,4VLJQDORXWSXWDOORZVXVHRIWKLUGSDUW\6'5VRIWZDUH
‡ )URQWDQGUHDUMDFNV
$QDO\]HUV 0HWHUV
7KLV K\EULG VWDQGDORQH DQDORJ DQG GLJLWDO
‡ 'LUHFWIUHTXHQF\LQSXWWRWKHGXDO9)2V\VWHP 
6'5 WUDQVFHLYHU FRYHUV DOO VKRUWZDYH DQG
+)DPDWHXUEDQGVDOORFDWHGWR1RUWK$PHUL ‡ 'HWDFKDEOHIURQWFRQWUROSDQHOPRXQWLQJRSWLRQV
FD&RYHUVPWRPDPDWHXUEDQGVLQ ‡ /DUJH/&'GLVSOD\ &ORFNV
‡ )URQWVSHDNHUDQG:DXGLRRXWSXW
FOXGLQJ0+]LQ66%&:$0)0DQG,4
‡ 5XJJHGGLHFDVWFKDVVLV
5DGLR0RXQWV
RXWSXWPRGHV2XWSXWSRZHULV:66%
&:DQG)0:LQ$0ZLWKORZDQGVXSHU ‡ 1DUURZFHUDPLFÀOWHUV $0N+]66%N+] DQG 
ORZSRZHUVHWWLQJVIRU453RSHUDWLRQ,QDG N+]DXGLRÀOWHULQJIRU&:
GLWLRQWKHJHQHUDOFRYHUDJHUHFHLYHUFRYHUV ‡ OHYHO5)DPSDWWHQXDWRU %RRNV 6RIWZDUH
‡ ,)VKLIWDQG5,7
.+]WR0+]LQDOOPRGHV
‡ 1RLVHEODQNHU
²
‡ )URQWSDQHOVHSDUDWLRQ
‡ /DUJH/&'GLVSOD\ ‡ EDQNVPHPRU\FKDQQHOV
‡ )URQWIDFLQJVSHDNHU ‡ 7ZRVHWVRISURJUDPPHGVHDUFKSDLUVDQGYDULHWLHVRI $PSOLÀHUV
‡ $XWRNH\HU VFDQQLQJPRGHV ²
‡ 6LPSOHRSHUDWLQJFRPPDQGV ‡ $XWR SRZHU RII VOHHS WLPHU GLDO DQG NH\ ORFNV 5;
LQGLFDWRULOOXPLQDWLRQ
‡ 'RZQORDGIUHH6'5VRIWZDUHIURP$OLQFR
‡ &RPSXWHUXWLOLW\VRIWZDUHWRPDQDJHVHWWLQJVDQGHGLW 3RZHU6XSSOLHV
FRP 3URJUDPPLQJ FDEOH (5:& RU
(5:UHTXLUHGIRU6'5RSHUDWLRQ PHPRULHV %DWWHULHV$FFHVVRULHV
‡ 5HFHLYHFLUFXLWU\'RXEOHFRQYHUVLRQVXSHUKHWHURG\QH ²
‡ 5HFHLYHUFXUUHQWGUDLQ$
‡ 5,7UDQJH“N+]
‡ ,))UHTXHQF\VW0+]QGN+] &RD[ &RQQHFWRUV
‡ 6SXULRXVDQGLPDJHUHMHFWLRQUDWLRPRUHWKDQG% ²
‡ $QWHQQDLPSHGDQFHRKPXQEDODQFHG
‡ )UHTXHQF\VWDELOLW\“SSP
‡ 3RZHUUHTXLUHG9'&“
$QWHQQD7XQHUV
6ZLWFKHV
66%&:$0)0 ('6 
$OO0RGH75$16&(,9(5 )URQWSDQHOUHPRWHNLWRSWLRQDOPFDEOHIURQWSDQHO
EUDFNHWXQLWFRYHUDQGKDUGZDUH
';657²&DOO $PDWHXU$QWHQQDV
N+]0+] +DQGKHOG5HFHLYHU ²
7KH';657FRYHUVPWRPDPD
WHXU EDQGV LQFOXGLQJ  0+] LQ 66% &: :LGH%DQG5HFHLYHU 5RWDWRUV 7RZHUV
$0DQG)0PRGHV2XWSXWSRZHULV:
66%&:)0DQG:LQ$0ZLWKORZDQG
'-;7
&DOO²+523ULFH
²
VXSHUORZSRZHUVHWWLQJVIRU453RSHUDWLRQ
*HQHUDOFRYHUDJHUHFHLYHURIDOOPRGHV *HWWKHSRZHURIDGHVNWRSUHFHLYHU 6WRUH/RFDWLRQV
LQ D KDQGKHOG )HDWXUHV  9)2
N+]WR0+]5HFHLYHUIHDWXUHVDUHVLPLODU
VLPXOWDQHRXVUHFHLYHFRYHUVWR
²
WRWKH';57
0+] LQDOOPRGHV
PHPRULHVVXEEDQGFRYHUDJH9+) &RPSOHWH,QGH[
([WHQGHG 0+]DQGWR0+] 
LQ$01)0,4VLJQDOFDQEHXVHG
:DUUDQWLHV ZLWKUGSDUW\VRIWZDUHDQGGLVFULPL ‹+DP5DGLR2XWOHW
$VWHULVN'HVLJQDQG.H\GDQFH
QDWRURXWSXWHDV\WRXVHWZLQGLDOV
$YDLODEOH VHOHFWDEOHWXQLQJVWHSVVHOHFWDEOH
3URGXFWLRQV7KLVFDWDORJPD\QRW
EHUHSURGXFHGLQZKROHRULQSDUW
6HHSDJH VFDQVSHHGVIUHHZDUHWRRSHUDWHDV
DVRIWZDUHGHÀQHGUDGLR
ZLWKRXWSHUPLVVLRQ

&HOOEDQGEORFNHG

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


02%,/(5$',26
6LQJOH%DQG0RELOHV
'XDO%DQG0RELOH
'5%+7
0HWHUV:DWWV
&DOO²+523ULFH

7KHFRPSDFW'5%LVORDGHGZLWKKLJK
WHFKIHDWXUHVKLJKVWDELOLW\3//V\QWKH
'XDO%DQG VL]HU:PD[RXWSXWGLJLWDOSKDQX
PFP PHULFGLVSOD\DQG
DZLGHYDULHW\RIVFDQQLQJIHDWXUHV<HWWKHRSHUDWLRQLVLQWXLWLYHDQGVLPSOH
'57²&DOO
‡ 7;0+]5;0+]
‡ 0+]0+])0WUDQVFHLYHU ‡ 6FDQQLQJIXQFWLRQVLQFOXGH'&6&7&66
‡ 7;0+]0+] SULRULW\JURXSDQGWLPHUEXV\PRGHV
‡ 5;0+] $0)0 0+] ‡ :LGHDQGQDUURZ)0PRGHV
)0  ‡ WRQH&7&66'&6WRQHHQFRGHDQG
‡ 5HFHLYHUGRXEOHFRQYHUVLRQ GHFRGH
‡ &LYLODYLDWLRQDQGXWLOLW\UHFHLYH ‡ +LJKORZSRZHUVHWWLQJ
‡ FKDQQHOSURJUDPPDEOHPHPRU\ ‡ 2IIVHWGLUHFWLRQDQGIUHTXHQF\YDULDEOH
‡ )XOOGXSOH[;EDQGUHSHDW ‡ .H\SDGORFNRXWUHYHUVHIXQFWLRQ
‡ :SRZHURXWSXWRQERWKEDQGV ‡ $OSKDQXPHULFWDJGLVSOD\GLPPHU
‡ +XJHDOSKDQXPHULF/&'GLVSOD\ ‡ $XWRPDWLFLOOXPLQDWLRQEULJKWQHVV
‡ 5*%EDFNOLJKWZLWKFKRLFHRIHLJKWFRORUV ‡ 7LPHRXWWLPHU
‡ 6HWGLIIHUHQWGLVSOD\FRORUIRUGLIIHUHQWIXQF ‡ %&/2DQGDXWRSRZHURII '570HWHUV
‡ 7RQHEXUVWWRQHVDXWRGLDOHU &DOO²+523ULFHV
WLRQVDQGVWRUHLQPHPRU\
‡ ,QGHSHQGHQWPHWHUFPGLDOVYROXPH ‡ '70)7;VSHHGSDXVHDQGPRQLWRULQJIHD &DWFKWKHH[FLWLQJZRUOGRIWKHPEDQGZLWK
VTXHOFKNQREV WXUHV WKH'57&RYHULQJ0+]ZLWKDQ
‡ 5HPRYDEOH IURQW FRQWURO KHDG 0RXQW ‡ 60(7(5VTXHOFK RXWSXWRI:LWKDVFRQYHQLHQWVFDQIHDWXUHV
UHPRWHO\ RU LQYHUWHG IRU RSWLPDO VSHDNHU ‡ 0XOWLIXQFWLRQDO PLFURSKRQH DYDULHW\RIVHOHFWLYHFDOOLQJWRQHVWKHIWDODUP
SODFHPHQW ZLWKNH\SDGV LJQLWLRQNH\RQRIIGLUHFWIUHTXHQF\LQSXWDQG
‡ :LGHYDULHW\RIVFDQQLQJIHDWXUHV ‡ &DEOHFORQLQJ FRQWUROVIURPWKH(06NH\SDGPLFURSKRQH
‡ &RPSXWHUSURJUDPPDEOH6RIWZDUHDYDLO
DEOHRQOLQH

'570.,,,0HWHU
'570.,,,0+]
'570.,,,0+] '570.,,,0HWHUV
&DOO²+523ULFHV &DOO²+523ULFH
([WHQGHG:DUUDQWLHV )HDWXUHVDXQLTXH PXOWLIXQFWLRQ EDFNOLWPLFUR PHWHU)0DQG$LUEDQGUHFHLYH $0 ,JQLWLRQ
$YDLODEOH SKRQHZLWKGLUHFWIUHTXHQF\LQSXW7KH0+] NH\SRZHUFRQWUROWKHIWDODUPSODFHDOSKD
0+]DQG0+]PRGHOVDFFHSWRSWLRQDO QXPHULFGLVSOD\IURQWSDQHOGDWDLQSXWRSWLRQDO
(-8 LQWHUQDO 71& RU (-8 GLJLWDO YRLFH LQWHUQDOSDFNHWPRGXOHWRXVHZLWK$356ŠUHDU
PRGXOH7KH0.,,,7&;2VXSSRUWVDVSHFLÀFD SDQHOVHULDOSRUWFRQQHFWLRQPHPRULHV
WLRQRI“SSPIUHTXHQF\VWDELOLW\ DXWRGLDOPHPRULHV
$OLQFR0RELOH6SHFLÀFDWLRQV

7;&2ZLWK“SSPIUHTXHQF\VWDELOLW\

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


+7V :($7+(567$7,216
'XDO%DQG+7
:LUHOHVV:HDWKHU6WDWLRQV
'XDO%DQG 9DQWDJH9XHŠ 9DQWDJH3URŒ
PFP +523ULFH +523ULFH
7KLV ZLUHOHVV ZHDWKHU VWDWLRQ SURYLGHV DFFX
'-7 UDWHUHOLDEOHZHDWKHUPRQLWRULQJLQDVHOIFRQ
&DOO²+523ULFH WDLQHGHDV\WRLQVWDOOV\VWHP,QFOXGHVRXWGRRU
VHQVRUDUUD\DQG/&'FRQVROH

7KH '-7 SURYLGHV ‡ 9DQWDJH9XHUDGLRFRPSDWLEOHZLWKRXUÁDJ


ODQGPRELOHJUDGH RS VKLS 9DQWDJH 3UR SURIHVVLRQDO VWDWLRQV VR
HUDWLRQ ZLWK  :DWWV \RXFDQPL[DQGPDWFKPRVWFRPSRQHQWV
RXWSXW&7&66'70) ‡ 6WDWLRQ LQFOXGHV WHPSHUDWXUH ZLQG KXPLG
'&6 DQG  WRQHV DV LW\DQGUDLQVHQVRUVFRQVROHDQGPRXQWLQJ
VWDQGDUG IHDWXUHV ,Q KDUGZDUH PRXQWLQJSROHVROGVHSDUDWHO\ 
FOXGHVGLUHFWIUHTXHQF\ ‡ &RQVROHVKRZVWLPHDQGGDWHPRRQSKDVH
LQSXW DOSKDQXPHULF IRUHFDVWLFRQVWHPSHUDWXUHKXPLGLW\EDUR
FKDQQHO ODEHOV  PHPRU\ FKDQQHOV GRW PHWULFWUHQGVKHDWLQGH[DQGZLQGFKLOO
PDWUL[ ZLWK  FRORU VHOHFWDEOH GLVSOD\ /LORQ 7KH 9DQWDJH 3URΠZHDWKHU VWDWLRQ KDV D
‡ 5DLQ WRWDOV DQG UDLQ UDWH DUH XSGDWHG HY
EDWWHU\DQGVWDQGFKDUJHUVWDQGDUG YHUVDWLOHVHQVRUVXLWHWKDWFRPELQHVRXUUDLQ
HU\VHFRQGVIRUWKHODVWKRXUVGD\V FROOHFWRUWHPSHUDWXUHDQGKXPLGLW\VHQVRUV
PRQWKV
DQGDQHPRPHWHULQWRRQHSDFNDJH&XVWRP
‡ 'RPHGEXWWRQVDUHHDV\WRVHQVHDQGSUHVV
L]H E\ DGGLQJ FRQVROHV RU VSHFLDOSXUSRVH
7UL%DQG+7 7KH\JORZLQWKHGDUN
RSWLRQV$YDLODEOHLQERWKZLUHOHVVDQGFDEOHG
‡ 6HW  VLPXOWDQHRXV GLIIHUHQW DODUPV WR
YHUVLRQV
ZDUQ RI KLJK ZLQGV IUHH]LQJ WHPSHUDWXUHV
UDLQUDWHÁRRGZDUQLQJDQGPRUH
PFP*+] ‡ 7UDFNGDLO\KLJKVDQGORZVWHPSHUDWXUHDQG
7KLVLVWKHÀUVWDQGRQO\ZHDWKHUVWDWLRQLQLWV
FODVVWRXVHIUHTXHQF\KRSSLQJVSUHDGVSHF
EDURPHWULFFKDQJHVE\WKHKRXU
WUXP UDGLR WHFKQRORJ\ WR WUDQVPLW ZHDWKHU
'-*7 ‡ *UDSK WKH ODVW  KRXUV GD\V RU PRQWKV
GDWD ZLUHOHVVO\ XS WR  IW  P  RXW
&DOO²+523ULFH 9LHZXSWRJUDSKVLQFOXGLQJWHPSHUDWXUH
GRRUV OLQH RI VLJKW 7\SLFDO UDQJH WKURXJK
UDLQ UDLQ UDWH ZLQG DQG EDURPHWULF SUHV
ZDOOV XQGHU PRVW FRQGLWLRQV LV  WR 
VXUH³DOORQWKHFRQVROH
IHHW WRP $GGZLUHOHVVUHSHDWHUVIRU
‡ :LQGVSHHGXSGDWHVHYHU\VHFRQGV'LV GLVWDQFHVXSWRPLOHV NP 
7KH '-*7 WXQHV SOD\VLQPLOHVSHUKRXUPHWHUVSHUVHFRQG
0+] FRQ NLORPHWHUV SHU KRXU DQG NQRWV 0HDVXUHV ‡ /DUJH EDFNOLW µ [ µ  [  FP  /&'
WLQXRXVO\ )XOO GXSOH[ ZLQGGLUHFWLRQLQFRPSDVVSRLQWVRUGHJUHHV VFUHHQ
UHFHLYHZLWK ‡ )UHTXHQF\KRSSLQJ VSUHDG VSHFWUXP UDGLR ‡ 8SGDWHVHYHU\VHFRQGV
0+]EDQGV$0 HQVXUHVFRQVLVWHQWWUDQVPLVVLRQXSWR ‡ 2SWLRQV DUH DYDLODEOH IRU 89VRODU VRLO
DQG:)0PRGHVDOORZ IW  P  IURP LQWHJUDWHG VHQVRU VXLWH WR PRLVWXUHVKRUWDQGORQJUDQJHUHSHDWHUV
\RX WR KHDU DYLDWLRQ FRQVROH DQGPXFKPRUH
DQGEURDGFDVWEDQGV ‡ 2SWLRQDO :HDWKHU/LQN GDWD ORJJHU DQG
6FDQ PRGHV DQG RS VRIWZDUHRIIHUDGGLWRQDODQDO\VHV
WLRQVLQFOXGHSDLUV ‡ (OHFWURQLF FRPSRQHQWV DUH KRXVHG LQ D
RISURJUDPPDEOHVFDQ ZHDWKHUUHVLVWDQWVKHOWHU
PHPRULHV7LPLQJDG ‡ 3RZHUWKHFRQVROHZLWKWKHLQFOXGHGSRZHU
MXVWDEOHSULRULW\VFDQ DGDSWHU RU ZLWK WKUHH & EDWWHULHV QRW LQ
QLQJ DQG$OLQFR
V &KDQQHO6FRSH ² YLVXDOL]H FOXGHG 
WKH SUHVHQFH RI UDGLR VLJQDOV RQ WKH GLVSOD\ ‡ &RPHV ZLWK PRXQWLQJ KDUGZDUH $GG RS
2XWSXWSRZHUXSWR:DWWVRQP WLRQDO  0RXQWLQJ 3ROH RU 
 &HOOEDQGEORFNHG 0RXQWLQJ7ULSRG

$OLQFR+DQGKHOG6SHFLÀFDWLRQV

3RZHURXWSXWLVGHWHUPLQHGE\FKRLFHRIEDWWHU\SDFN‚DW9'& P:ZLWK9'&:0+]

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


+)%$6(5,*6
+)0HWHU7UDQVFHLYHU

7KH6'5
(YHU\RQH
:DQWV
,&
,& 7KLV+)WUDQFHLYHUKDVLQQRYDWLYHIHDWXUHVOLNHWKH5)GLUHFW
VDPSOLQJXVHGLQPDQ\VRIWZDUHGHÀQHGUDGLRV7KHUHDO
WLPHVSHFWUXPVFRSHZLWKZDWHUIDOOIXQFWLRQJLYHVWRSOHYHO
'XDO5HFHLYHU+)([FLWHPHQW5)'LUHFW6DPSOLQJ SHUIRUPDQFHLQUHVROXWLRQVZHHSVSHHGDQGG\QDPLFUDQJH
7KH,&XVHVDQLQQRYDWLYH5)GLUHFWVDPSOLQJV\VWHPWRFRQYHUWDUHFHLYHGDQD ‡ 66%&:577<$0DQG ‡ 9RLFHPHPRU\IXQFWLRQ
ORJVLJQDOWRGLJLWDO7KHQLWDSSOLHVVRSKLVWLFDWHGSURFHVVLQJWRSURGXFHH[WUDRUGLQDULO\ )0PRGHV ‡ 577< GHFRGH ORJ IXQF
FOHDUDXGLRZLWKKLJKVLJQDOWRQRLVHUDWLR7KHXOWUDORZQRLVHPDVWHUFORFNRVFLOODWRU ‡ 7UDQVPLWV RQ DPDWHXU WLRQ
\LHOGVVXSHULRU7;DQG5;SHUIRUPDQFHLQFOXGLQJDQLQFUHGLEOHG%RI50'5 UH +) IUHTXHQFLHV SOXV  ‡ 6FUHHQFDSWXUH
FLSURFDOPL[LQJG\QDPLFUDQJH DWN+]IUHTXHQF\VHSDUDWLRQ PHWHUV ‡ 6'FDUGVORW
‡ 8VH WKH 7)7 /&' DV ‡ 86%IRU&,9DQGDXGLR
,QGHSHQGHQW GXDO UHFHLYHUV DOORZ VLPXOWDQHRXV UHFHSWLRQ RI WZR EDQGV DQG WZR
D WRXFK VFUHHQWR VHW LQSXWRXWSXW
PRGHV,QGHSHQGHQW5)$)JDLQFRQWUROVDUHSURYLGHGDQGWKHRSWLRQDO5&86%
YDULRXVIXQFWLRQVDQGHGLW ‡ /DUJHFRROLQJIDQV\VWHP
UHPRWHHQFRGHUNQREFDQSURYLGHDVHFRQGWXQLQJGLDOIRUJUHDWHURSHUDWLQJÁH[LELOLW\
PHPRU\FRQWHQWV ‡ 0XOWLIXQFWLRQPHWHU
RSWLRQDO56%$UHPRWHFRQWUROVRIWZDUHLV127UHTXLUHG 
‡ :RXWSXW+)0+] ‡  PHPRU\ FKDQQHOV
+LJKSHUIRUPDQFHIHDWXUHVLQFOXGH:DWWVRISRZHURQPHWHUVRQ66%&: EDQGV  UHJXODU DQG  VFDQ
)0577<36.EXLOWLQKLJKVSHHGDXWRPDWLFDQWHQQDWXQHUDQGGLJLWDO,)ÀOWHULQJ ‡ %XLOWLQKLJKVSHHGDXWR HGJHFKDQQHOV 
ZLWKGLJLWDOWZLQSDVVEDQGWXQLQJIRURXWVWDQGLQJLQWHUIHUHQFHUHMHFWLRQ PDWLFDQWHQQDWXQHU ‡ 0XOWLSOH&:IXQFWLRQV
‡ 0XOWLGLDONQREIRUVPRRWK ‡ 'LJLWDOQRLVHUHGXFWLRQ
‡ 5HFHLYHV²0+] ‡ (WKHUQHW SRUW IRU ,3 UHPRWH RSHUDWLRQ RSHUDWLRQ 3XVK WR VHH
‡ ',*,6(/ GLJLWDO UHFHLYHU SUHVHOHF RSWLRQDO56%$VRIWZDUHUHTXLUHG  PHQXLWHPV6HOHFWZLWK
WRUSURYLGHVWLJKW5)ÀOWHULQJIRUERWK ‡ &RPSDWLEOH ZLWK 3: OLQHDU DPS DWRXFKRIWKHVFUHHQDQG 6SHDNHU
PDLQDQGVXEUHFHLYHUIURQWHQGV 60G\QDPLFPLFDQG$+UHPRWH DGMXVW OHYHOV E\ WXUQLQJ
‡ 'XDO KLJKVSHHG KLJKUHVROXWLRQ DXWRPDWLFDQWHQQDWXQHURSWLRQV WKHPXOWLGLDONQRE
63
UHDOWLPHVSHFWUXPVFRSHVDQGZD ‡ 3KDVHQRLVHFKDUDFWHULV
WHUIDOOGLVSOD\V 6SHDNHU WLFV DUH LPSURYHG DERXW
‡ +LJKUHVROXWLRQµWRXFKVFUHHQFRORU G% DWN+]IUHTXHQF\ *HWRSWLPXPVRXQGTXDO
GLVSOD\ IRU TXLFN LQWXLWLYH RSHUDWLRQ 63
RIIVHW ZKHQFRPSDUHGWR LW\ ZLWK WKLV KLJK TXDOLW\
DQGHIIRUWOHVVFRQWURORIIXQFWLRQV 'HVLJQHG WR PDWFK RWKHUWUDQVFHLYHUV VSHDNHU SHUIHFW IRU WKH
‡ 6XSHULRUVRXQGTXDOLW\VSHDNHU WKH,&:KLJK ‡ 5HPRWHFRQWURORSHUDWLRQ ,&5DWHGRXWSXWLV
‡ 6'FDUGVDYHVVHWWLQJVDQGUHFRUGHG TXDOLW\ZLWKLQSXWOLQHV+DVWRQHVHOHFW IRU56%$ : PD[LPXP LQSXW SRZHU
FRPPXQLFDWLRQV &DUGQRWLQFOXGHG  VZLWFKHVLQSXWMDFNVHOHFWRUVZLWFKKHDG ‡ 0HPRU\NH\HUIXQFWLRQV LV:,PSHGDQFHLVї
‡ ([WHUQDOPRQLWRUYLDD'9,'SRUW SKRQHMDFNDQGVSHDNHU212))VZLWFK IRU&:DQG577< +523ULFH&$//

$OO%DQG
,&
+)
&RQWHVWHU
V5LJ
,&
7KH&RQWHVWHUҋVULJKDVWZRELWÁRDWLQJSRLQW'63XQLWV²RQHIRUWKHWUDQVPLWWHU
UHFHLYHUDQGWKHRWKHUIRUWKHVSHFWUXPVFRSH7KHUHLVDG%PUGRUGHULQWHUFHSW ‡ 5HFHLYHVa ‡ 7UDQVPLWV DPDWHXU +)
SRLQWDQGXOWUDZLGHG\QDPLFUDQJH7ZR,)VWDJHVDQG,FRP
VLPDJHUHMHFWLRQWHFK 0+] H[FHSWP
QRORJ\DOORZYHU\ZHDNVLJQDOVDQGYHU\VWURQJVLJQDOVWREHKHDUGZLWKRXWGLVWRUWLRQ ‡ PHPRU\FKDQQHOV ‡ $)'63EXLOWLQ
‡ 0RGHV86%/6%&: ‡ %XLOWLQHOHFWURQLFNH\HU
‡ µZLGHFRORU7)7/&'6SHFWUXPZD ‡ :SRZHURXWDWIXOOGXW\F\FOH 577<$0 ‡ 92; RSHUDWLRQ PLNH
WHUIDOOGLVSOD\RSHUDWHGE\3&PRXVH ‡ 'LJLWDO ,) ÀOWHUV WZLQ SDVVEDQG WXQ ‡ ,) VKLIW LQWHUIHUHQFH FRPSUHVVRU 5) JDLQ
‡ $XGLRVFRSHIXQFWLRQ LQJWKUHHURRÀQJÀOWHUVGLJLWDOPDQXDO UHMHFWLRQ FRQWURO
‡ :DYHIRUP RXWOLQH LQ UHDOWLPH VSHF QRWFKÀOWHU$GMXVWDEOHQRLVHEODQNHU ‡ 2XWSXW SRZHU 66%  ‡ NH\SDGIRUGLUHFWRS
WUXPVFRSH 212))  ‡ 8OWUDKLJKVWDELOLW\2&;2XQLW &:577<a: HUDWLQJIUHTXHQF\HQWHU
‡ 5HPRWHFRQWURORSVIRU56%$ ‡ &:577<36.RSHUDWLRQ YDULDEOH$0a: LQJDQGPHPRU\FKDQQHO
‡ 7;GHOD\VHWVWKHWLPLQJWRFRQWURODQ ‡ 0+]EDQGSUHDPS PL[HU YDULDEOH VHOHFWLRQ
DWWDFKHGH[WHUQDOOLQHDUDPS ‡ 0LFURSKRQHHTXDOL]HU
‡ $GGHG 5,7 DQG ʔ7; FRPPDQGV IRU ‡ 5)VSHHFKFRPSUHVVRU
&,9UHPRWHFRQWURO ‡ 'LJLWDOYRLFHUHFRUGHU
‡ ,QWHUQDOGLVWRUWLRQUHGXFWLRQ ‡ ,QFUHDVH$3)YROXPHOHYHO ([WHQGHG:DUUDQWLHV
‡ ,FRPҋV',*,6(/
‡ /HVVLQWHUQDOSKDVHQRLVH
‡ &)PHPRU\FDUG
‡ DQWHQQDFRQQHFWRUV
$YDLODEOH6HH3DJH
‡ 0XOWLSOH$*&ORRSVIXOOFRQWURO ‡ 'RXEOHFRQYHUVLRQVXSHUKHWHURG\QH

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


+)%$6( $&&(6625,(6
7KH3LQQDFOHRI+)3HUIHFWLRQ 0LFURSKRQHV 6RIWZDUH

,&60

+)3OXVP,& 56%$
7KH,&SHUIHFWV+)RSHUDWLRQ 7KH ,& DOVR KDV WKH ,35HPRWH&RQWUROIRU
ZLWK QHZ IHDWXUHV VXFK DV D  VSHFWUXPZDWHUIDOOIXQFWLRQ
7KLV JRRVHQHFN VW\OH GHVNWRS +)7UDQVFHLYHUV
N+] RSWLPL]HG URRÀQJ ÀOWHU WR LP IRXQG LQ WKH ,& 7KH
PLFURSKRQH IHDWXUHV DQ SLQ 5HPRWHO\ FRQWURO ,FRP WUDQVFHLYHUV
SURYHLQEDQGDGMDFHQWVLJQDOSHU KLJKUHVROXWLRQ ZDWHUIDOO
PHWDOFRQQHFWRU377377ORFN WKURXJK DQ ,3 QHWZRUN ZLWK WKH 56
IRUPDQFH7KHQHZGHVLJQRXWSHU VFUHHQVKRZVWKHFKDQJLQJ
VZLWFKHVDQGORZFXWÀOWHU,WDOVR %$,WDOORZV\RXWRLQVWDOOWKHUDGLR
IRUPV FRPSHWLWRUVҋ VLPLODU PRGHOV DPSOLWXGH RI IUHTXHQFLHV
KDV DQ DGMXVWDEOH PLFURSKRQH LQ DQRWKHU URRP XVLQJ \RXU KRPH
LQWKHWRN+]VHSDUDWLRQWHVWV RYHU WLPH $Q HQKDQFHG
RXWSXW OHYHO DQG WKH YRLFH FKDU QHWZRUNRUDUHPRWHORFDWLRQRYHUWKH
VSHFWUXP VFRSH SURPRWHV
DFWHULVWLFV KDYH EHHQ HVSHFLDOO\ ,QWHUQHW7KHORZYRLFHODWHQF\FDXVHG
8QOLNH+)ULJVXVLQJDFRQYHQWLRQ IDVW DQG DFFXUDWH VFDQ
GHVLJQHG IRU 66% DQG )0 ,& E\ WKH 56%$ SURYLGHV WKH VDPH
DO YROWDJH FRQWUROOHG RVFLOODWRU IRU DQG FDQ EH RSHUDWHG ZLWK
23& UHTXLUHG IRU XVH ZLWK RSHUDWLRQDO H[SHULHQFH DV XVLQJ DQ
WKHVW/2WKH,&XVHVDGL 3& PRXVH YLD 86% SRUW
UDGLRVZLWKPRGXODUMDFN>,& DFWXDOUDGLR0RVWIXQFWLRQVDQGPRGHV
UHFWGLJLWDOV\QWKHVL]HU ''6 ZLWK 'XDOVFRSHIXQFWLRQVKRZV
,&VHULHV,&,&@ RI\RXUWUDQVFHLYHUFDQEHFRQWUROOHG
DYROWDJHFRQWUROOHG6$:RVFLOODWRU VLPXOWDQHRXV DFWLYLW\ LQ
9&62  7KLV QHZ VW /2 GHVLJQ ERWK EDQGV WR KHOS VHDUFK 
VHWVDEHQFKPDUNIRUSKDVHQRLVH DVXEEDQGZKLOHPDLQWDLQ 7KH56%$KDVWZRFRPSRQHQWDSSOL
ZLWKG%F+]DWN+]RIIVHW LQJDUXQIUHTXHQF\RQWKH FDWLRQV6\VWHP&RQÀJXUDWLRQWRVHWXS
DQGG%F+]DWN+]RIIVHW  PDLQEDQG WKH,3DGGUHVVDQGRWKHUVHWWLQJVDQG
,&60 5HPRWH&RQWURODOORZV\RXWRFRQWURO
WKHUDGLR7KHGLVSOD\RQWKH56%$
+)7XQHU &ORQLQJ LV VLPLODU WR WKH UDGLR
V IURQW SDQHO
6XSSRUWV WKH ,&  
$XWR ,FRP FORQLQJ VRIWZDUH IRU   RU  ZLWK 86%
$QWHQQD :LQGRZVDOORZV\RXWRSUH FRQQHFWLRQWRD3&$OVRWKH,&
SURJUDPPHPRU\FKDQQHOV RUFRQQHFWHGWRD3&ZLWKDQ56
7XQHU ZLWKRSHUDWLQJIUHTXHQFLHV &FDEOHSOXV63',)RU$&&FDEOH
VHWWRQHVVHWSRZHUOHYHOV
VHW VTXHOFK OHYHOV VHW XS 7KLV XQLGLUHFWLRQDO G\QDPLF PL
DXWRGLDO'70)IUHTXHQFLHV
$+ DQG H[FKDQJH RSHUDWLQJ
FURSKRQH LV GHVLJQHG IRU VHOHFW
,FRP EDVH VWDWLRQ WUDQVFHLYHUV
IUHTXHQFLHV &DOO IRU SULFH
7KH$+DXWRWXQHUFRYHUVDOODPD ,WFDQQRWEHXVHGZLWKQRQ,FRP
TXRWHV 
WHXUEDQGVIURPWRPHWHUVZKHQ WUDQVFHLYHUV VLQFH WKH SRZHU
XVHGZLWKDPLQLPXP
ORQJZLUH ‡ &69ZLWKRXWFDEOH LV VXSSOLHG IURP WKH FRQQHFWHG ,&5&
DQWHQQD :LWK WKH RSWLRQDO $+E 9$  WUDQVFHLYHU 7KH60IHDWXUHV 5HPRWH&RQWURO86%(Q
DQWHQQDHOHPHQWWXQHWKURXJK ‡ &6+ZLWKRXWFDEOH 8S'RZQ WXQLQJ RQ FRPSDWLEOH FRGHU
PHWHUVIRUPRELOHRSHUDWLRQ,WKDV +  ,FRP WUDQVFHLYHUV  7KHUH LV D 7KHRSWLRQDO5&XWLOL]HVWKHVDPH
DXWRPDWLFEDQGFKDQJHVDQGWXQHV ‡ &67$ZLWKRXWFDEOH VZLWFK IRU 377 DQG DOVR D ORFN WXQLQJ NQRE DQG HQFRGHU XVHG RQ
XVXDOO\LQOHVVWKDQVHFRQGV7KH 7$  IHDWXUH$ ORZ FXW VZLWFK RQ WKH ,FRP +) UDGLRV SURYLGLQJ D WDFWLOH
PHPRULHVVWRUH6:5PLQLPXP ‡ &6ZLWKRXWFDEOH WRS RI WKH EDVH FXWV RXW WKH ORZ RSWLRQIRUWKH56%$VRIWZDUH7KH
DQGWXQLQJFRPELQDWLRQV5HTXLUHV  ,& IUHTXHQF\ FRPSRQHQWV RQ LQSXW HQFRGHULQFOXGHVD377DQGWZRXV
RQO\P:WRWXQHDQGKDQGOHV ‡ &65ZLWKRXWFDEOH YRLFHVLJQDOV HUSURJUDPPDEOH IXQFWLRQ NH\V 7KH
XSWR:DWWV+523ULFH  ,& ,&23&UHTXLUHGIRUXVHZLWK 5&LVQRWDVWDQGDORQHFRQWUROIRU
‡ &6IRU,&5 UDGLRVZLWKPRGXODUMDFN>,& ,FRP UDGLRV DQG PD\ RQO\ EH XVHG
ZLWKWKH56%$VRIWZDUH
,FRP+)6SHFLÀFDWLRQV ,&VHULHV,&,&@

‚2XWSXWLVFRQWLQXRXVO\DGMXVWDEOHIURPWRIXOOSRZHU :RQPHWHUV:FP:+)0+]:9+):8+)

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


02%,/(6+$1'+(/'6
6LQJOH%DQG$QDORJ0RELOH
'XDO%DQG$QDORJ0RELOH
P0RELOH
3UDFWLFDO'XDO%DQGHU ,&+
,&$ 7KH,&PPRELOHWUDQVFHLYHUERDVWV
ZLWK2SWLRQDO DSRZHUIXO:RXWSXWVLPSOHWRXVH
XVHULQWHUIDFHDQGEXLOWLQ&7&66
%OXHWRRWK '7&6HQFRGHUGHFRGHU
+HDGVHW
‡ 6LPSOH RSHUDWLRQ ZLWK
DODUJHWXQLQJGLDO
‡     D O S K D Q X P H U L F
PHPRULHV
‡ '\QDPLFPHPRU\VFDQ
7KLV KLJK SHUIRUPDQFH DOORZVVFDQQLQJRIVH ,FRP+DQGKHOG$FFHVVRULHV
‡ %XLOWLQ&7&66DQG
PRELOHUDGLRLVDFODVVLF OHFWHGPHPRU\EDQNV
 '7&6 WRQHV ZLWK
PFPRSHUDWLRQ ‡ 3RFNHW EHHS IXQFWLRQ
VSOLWWRQHIXQFWLRQ
IRULQFRPLQJFDOOV
‡ &RQWUROOHU DWWDFKPHQW
‡ :LGHEDQGUHFHLYHU ‡ '70)DXWRGLDO
WR WKH PDLQ XQLW ZLWK
0+] ‡ 6HOHFW\HOORZJUHHQRU
RSWLRQDO0%$ 
‡ /DUJH EDFNOLW /&' DPEHUGLVSOD\
‡  PHPRU\ FKDQ
VFUHHQ ‡ 3&WR;&95DQG;&95
QHOVLQFOXGLQJVFDQ
‡ 99  88 VLPXOWDQH WR ;&95 FORQLQJ RS
HGJHVDQGFDOO
RXVUHFHLYH WLRQDO VRIWZDUH DQG
‡ :HDWKHU FKDQQHO UH
‡ +DQGVIUHH FDSDEOH FDEOHUHTXLUHG 
FHLYH ZLWK ZHDWKHU
ZLWKRSWLRQDO87 ‡ $XWRPDWLF UHSHDWHU
DOHUW 86$ YHUVLRQ
‡ 2SWLRQDO 96 %OXH IXQFWLRQ DQG ZHDWKHU
RQO\ 
WRRWKŠKHDGVHW FKDQQHO 86$RQO\ 
‡ +0UHPRWHFRQWURO
‡ &URVV EDQG UHSHDWHU ‡ 3RZHU VXSSO\ YROWDJH
PLFLVVWDQGDUG
FDSDELOLW\ GLVSOD\WLPHRXWWLPHU
‡  '70) DXWRGLDO
‡ &6IUHHGRZQORDG UHSHDWHUORFNRXWDXWR
PHPRULHV
3& SURJUDPPLQJ VRIW SRZHURII
‡ &,9 UHPRWH FRQWURO
ZDUH ‡ 6HOHFWDEOH VTXHOFK
FDSDELOLW\ WKURXJK WKH
‡ :DWWVRXWSXWRQ9+) GHOD\ DQG VTXHOFK DW
RSWLRQDO23&8& 
DQG8+) WHQXDWRU
'HOX[HYHUVLRQLQFOXGHV ‡ :LGHQDUURZFKDQQHO
‡ 6TXHOFK GHOD\ DQG 0%$ UHPRWH KHDG
VTXHOFKDWWHQXDWRU VHWWLQJ
EUDFNHW ‡ 3DVVHG0,/67'*
VSHFLÀFDWLRQV
+DQGKHOG%DWWHULHV &KDUJHUV

$$$ONDOLQH
3DFNV
%3%31
%3%3
%3

 5HTXLUHV%&6
$&DGDSWHU
YHUVLRQDYDLO
DEOH

,FRP+DQGKHOGV &DEOHRQO\WREHXVHGZLWK+6RU

3RZHUZLWKVWDQGDUGEDWWHU\SDFN‚)UHTXHQF\FRYHUDJH UHFHLYHRQO\RXWVLGHDPDWHXUEDQGV 0+]


([WHQGHGUHFHLYH0+]DQG0+]FHOOXODUEORFNHG

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


5(&(,9(56
5HFHLYHUV
$QDORJ+7V
,&5
7KHODWHVWDGGLWLRQWRWKH,FRP
UHFHLYHU OLQH KDV JUHDW QHZ
IHDWXUHV
‡ 'XDO UHFHLYH RQ GLIIHUHQW
,&9 EDQGVDQGGLIIHUHQWPRGHV ,&5
0HWHU ‡ 'XDOEDQGUHFRUGLQJWRLQ :LGHEDQG5HFHLYHU
GLYLGXDOO\UHFRUGWKHDXGLR ‡ 8OWUDZLGH IUHTXHQF\ FRYHUDJH  N+]
6LQJOH%DQG RIWKHWZREDQGVUHFHLYHG *+]  ZLWK 566, UHFHLYHG VLJQDO VWUHQJWK LQ
‡ :LLGHEDQGFRYHUDJHWR GLFDWLRQ IXQFWLRQ
&ODVVOHDGLQJ  : 0+]'HPRGXODWHV
RXWSXW SRZHU DQG ‡ )DVW PRYLQJ UHDOWLPH VSHFWUXP VFRSH DQG
FRQYHQWLRQDODQDORJVLJQDOV ZDWHUIDOO
QHZDQWHQQDGHVLJQ VXFK DV $0 )0 :)0
LQFUHDVHFRPPXQLFD ‡ 'HFRGHV PXOWLSOH GLJLWDO SURWRFROV LQFOXG
86%/6%DQG&:DVZHOO LQJ'67$5Š1;'1ŒG305ŒDQG$3&2
WLRQFRYHUDJH DVGLJLWDOPRGHV 3
‡ )UHTXHQF\ FRYHU ‡,QWHJUDWHG*36UHFHLYHU ‡ /DUJHLQFK7)7FRORUWRXFKVFUHHQGLVSOD\
DJH 7;  5; JXDU ‡5HFRUGDQGSOD\EDFNIURP ‡ &OHDU DXGLR TXDOLW\ XVLQJ )3*$  '63 EDVH
DQWHHGUDQJH 86$ RSWLRQDOPLFUR6'FDUG DUFKLWHFWXUHZLWKVXSHUKHWHURG\QHFLUFXLWU\
²0+](;3²0+] ‡ :LUHOHVVOLVWHQLQJZLWKRSWLRQDO96EOXHWRRWK ‡ 2SWLRQDO,&&653&UHPRWHFRQWUROVRIW
‡ %XLOWLQ &7&66 DQG '7&6 HQFRGHU KHDGVHW ZDUHDOORZVFRQWURORIDOOUHFHLYHUIXQFWLRQV
GHFRGHU ‡ %XLOWLQ86%SRUWIRUFKDUJLQJDQGGDWDWUDQVIHU ‡ ,4VLJQDORXWSXWIRUXVHZLWKWKLUGSDUW\6'5
‡ P:SRZHUIXODQGFU\VWDOFOHDUDXGLR DQG&,9FRQWURO VRIWZDUHDQGRUH[WHUQDOGHFRGLQJ
SURYLGHV FOHDU FRPPXQLFDWLRQ HYHQ LQ ‡ 'LJLWDO GHFRGH RI YDULRXV GLJLWDO SURWRFDO ‡ 6'FDUGVORWIRUORJVDQGYRLFHUHFRUGLQJ
QRLV\HQYLURQPHQWV VLJQDOVLQFOXGLQJ 3 3KDVH 1;'1Œ ‡ 2SWLRQDO63$'H[WHUQDOVSHDNHUZLWKLQWH
‡ 6ROLGVWUXFWXUHPHHWV,3DQG0,/67' G305Œ'67$5 'LJLWDO6PDUW7HFKQRORJ\ JUDWHGSRZHUVXSSO\
*VWDQGDUGV IRU$PDWHXU 5DGLR  DQG -DSDQHVH GRPHVWLF
‡ 6XSSOLHG%3P$K W\SLFDO ODUJH '&5 'LJLWDO&RQYHQLHQFH5DGLR 
63$'
FDSDFLW\/LLRQEDWWHU\SDFN
‡ 2SWLRQDO%3P$K W\SLFDO H[WUD ,&56SRUW 6SHDNHU3RZHU6XSSO\
ODUJHFDSDFLW\/LLRQEDWWHU\SDFN $YDLODEOHLQEODFNUHGRUEOXH
7KLVZDWWRKPVSHDNHUKDVDQLQWHJUDWHG
‡ 6XSSOLHG%&EDWWHU\FKDUJHUZLWKWKH 7KH ,&5 LV D 6LJQDO  9ROW  DPS SRZHU VXSSO\ ,W KDV D ÁLS
FKDUJLQJFRQWUROIXQFWLRQZKLFKUHGXFHV 6HDUFK 0DFKLQH &RYHU
GHJUDGDWLRQRIEDWWHU\ VWDQGDQGPDWFKHVWKH,&5UHFHLYHU
LQJ  N+] WR  ‡ 5DWHGLQSXWSRZHUZDWWV
0+] FHOOXODUEORFNHGDQG
,&7$+' ‡ 0D[LPXPUDWHGSRZHUZDWWV
UHFHLYHV DQDORJ 79 RQO\ 
‡ 5HDUSDQHORXWSXWKDUGZLUHGDXGLRFDEOH
'XDO%DQG LWFDQVHDUFKFKDQQHOV
WRPPPRQRPLQLSOXJ
SHUVHFRQG7KHUHFHLYHULV
PFP HQHUJ\HIÀFLHQW GHVLJQHG ‡ 5HDU SDQHO LQSXW $& FRUG SOXJ ,PSHG
WRSURYLGHXSWRKRXUVRI DQFHRKPV
7KH ,&7$ RIIHUV OLVWHQLQJRQDVLQJOHFKDUJH ‡ $XGLR&DEOHIHHW P
L P S U H V V L Y H  D X G L R ‡ 6L]HððLQFKHV
RXWSXW YROXPH ORQJ :LWK  DOSKDQXPHULF
ODVWLQJ SRZHU SOHQW\ PHPRU\ FKDQQHOV  VFDQ HGJHV DQG 
RI PHPRU\ FKDQQHOV DXWRZULWHPHPRULHVWKHUHDUHPDQ\VFDQQLQJ
UXJJHG FRQVWUXFWLRQ RSSRUWXQLWLHV7KHEDQNOLQNIHDWXUHDOORZVFRQ
DQGDQDORJIHDWXUHV QHFWLQJDQ\RIWKHPHPRU\EDQNV7KH9RLFH
6TXHOFK&RQWURORSHQVWKHVTXHOFKRQO\ZKHQD
‡ 7;   P   FP PRGXODWHGVLJQDOLVGHWHFWHG
EDQGV 5;  ,&5$FFHVVRULHV ,&5
  0+]
86YHUVLRQ 
3URIHVVLRQDO
‡ 3RZHURXWVHOHFWDEOH²:: &RPPXQLFDWLRQV5HFHLYHU
: ‡ G%P,3G%ZLGHG\QDPLFUDQJH
‡ P:ORXGDXGLR ‡ 0HDVXULQJFODVVDFFXUDF\'XDO,)ÀOWHU
‡ /RQJODVWLQJEDWWHU\OLIH8SWRKRXUV ‡ 6XSHULRU%3)XQLW
ZLWKVXSSOLHG%3 ‡ 'XDO'639)2V
‡ ([WHUQDO'&SRZHUMDFN ‡ ZLGHFRORU7)7/&'
‡ DOSKDQXPHULFPHPRULHVLQFOXGLQJ ‡ +LJKUHVROXWLRQVSHFWUXPVFRSHPHPRULHV
EDQGHGJHVDQGFDOOFKDQQHOV0D[LPXP ‡ FKDQQHOQRLVHEODQNHU
RIPHPRU\EDQNVIRUVFDQQLQJ ‡ URRÀQJÀOWHUVSRLQWPDQXDOQRWFKÀOWHU
‡ %XLOWLQ&7&66'7&6 ‡ 0+]&HOOXODUEORFNHG
‡ ,QWHUQDO 92; :; FKDQQHO GLUHFW NH\ ‡ $OOEDQGV66%&:)6.$0)0:)0RQ
SDGIUHTXHQF\HQWU\'70)DXWRGLDO VRPH
PHPRULHV ‡ 'LJLWDOYRLFHUHFRUGHU
‡ ,30,/67'UXJJHGFRQVWUXFWLRQ ‡ DQWHQQDFRQQHFWRUV

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


'67$5&(175$/
'6WDU0RELOHV
+)DQG0RUH:LWK'6WDU
,'$
0XOWL%DQG$OO0RGH2SHUDWLRQV 'XDO%DQG
'67$5
*360RELOH
,&


+)3OXV
7HUPLQDO DFFHVVSRLQWPRGHV([WHQG'67$5FRYHUDJHZLWKWKH,Q
P9+)8+) WHUQHW '5 '67$5 UHSHDWHU  IXQFWLRQ 2SWLRQDO GDWD FDEOH DQG IUHH
ZLWK'67$5 GRZQORDGDSSOLFDWLRQUHTXLUHG

‡ ,QWXLWLYHWRXFKVFUHHQLQWHUIDFH ‡ (DV\YHKLFOHPRXQWLQJ RSWLRQDO ‡ )XOO GRWPDWUL[ GLVSOD\ ZLWK ‡ ,QWHJUDWHG *36 DQG PLFUR6'
‡ (DV\WRVHHHDV\WRXVH VODQW 0%)  HDV\WRUHDG FKDUDFWHUV DQG FDUG VORW 0LFUR6' FDUG UH
WRSFRQWUROOHU ‡ ,) '63 FRQWUROOHG GLJLWDO IHD LFRQV TXLUHG
‡ %XLOWLQ KLJK HIIHFLHQF\ RYDO WXUHV7KHELWÁRDWLQJSRLQW ‡ &RPSDFW GHWDFKDEOH FRQWURO ‡ (QKDQFHGUHPRWHFRQWURODSSV
VSHDNHURQWKHFRQWUROOHU '63VXSSRUWVPDQ\GLJLWDOSUR OHUIRUÁH[LEOHLQVWDOODWLRQ IRU VPDUW GHYLFHV 2SWLRQDO
‡ '67$5'9PRGHGLJLWDOYRLFH FHVVLQJIHDWXUHVVXFKDVGLJLWDO ‡ %OXHWRRWK FDSDEOH IRU KDQGV %OXHWRRWK XQLW DQG IUHH GRZQ
DQGORZVSHHGGDWDFRPPXQLFD ,) ÀOWHU WZLQ 3%7 DQG PDQXDO IUHH RSHUDWLRQ 2SWLRQDO %OXH ORDGDSSOLFDWLRQUHTXLUHG
WLRQV QRWFKÀOWHUV WRRWK XQLW DQG UHDGVHW UH ‡ L26DSS
‡ PHPRU\FKDQQHOV ‡ 5HPRWH &RQWURO 6RIWZDUH RS TXLUHG ‡ 7HUPLQDODFFHVVSRLQWPRGH
‡ 6:5JUDSKLFGLVSOD\ WLRQDO56%$,3 
‡ 2SWLRQDO0%)PRXQWLQJEDVH ‡ &:IXOOEUHDNLQ ,'$'HOX[H
‡ %XLOWLQ 6' FDUG VORW IRU YRLFH ‡ &:DXWRWXQLQJ
VWRUDJHDQGGDWDFORQLQJ ‡ 86%$XGLR&RQWURO 'XDO%DQG'67$5
‡ %XLOWLQ577<IXQFWLRQV ‡ ,)'63 ZLWK
7RXFK
9+)8+)'6WDU 6FUHHQ

7KLV,'$GXDOEDQG'67$5PRELOHKDVDODUJHUHVSRQVLYHWRXFK
VFUHHQ/&'DQG%OXHWRRWKFRQQHFWLYLW\

‡ :LGHEDQG UHFHLYH  ‡ ,QFOXGHV 0%$ UHPRWH KHDG


0+] $0  EUDFNHW
0+]RQO\  ‡ 5606$$QGURLGDSSOLFDWLRQ
‡ $QWHQQD 5; GLYHUVLW\ VHFRQG DIUHHWRXVHGRZQORDG
DQWHQQDFRQQHFWRU  ‡ ,QGHSHQGHQW 9+) DQG 8+)
,& ‡ '70) GHFRGH  '9  )0 UH EDQG XQLWV 99  88 FDSDEOH 
SHDWHUOLVW IRU:RXWSXW
9+)8+)7UDQVFHLYHUZLWK'6WDU ‡ 2SWLRQDO87%OXHWRRWKXQLW ‡ '3OXV UHÁHFWRU XVDELOLW\ VH
'HVLJQHGIRUWKH9+)8+)ZHDNVLJQDORSHUDWRUWKH,&LVDQ5) HQDEOHV DXGLR DFFHVVRU\ FRQ OHFW´UHÁHFWRUµLQ72ÀHOG 
GLUHFWVDPSOLQJUHFHLYHUIRUPDQGFPZLWKDVLQJOHGRZQFRQYHU QHFWLRQ DQG $QGURLG WHUPLQDO ‡ '9 GXDO ZDWFK IRU VLPXOWDQH
VLRQIRUFPZLWKDQ,)VDPSOHGUHFHLYHUEHWZHHQ²0+]7KLV FRQQHFWLRQ &,9YLD%OXHWRRWK RXVO\ ZDLWLQJ LQ WZR '9 YRLFH
GHVLJQSURYLGHVDTXLHWUHFHLYHUZLWKWKHSRZHURI,FRPҋV'63WHFKQRO 633SURÀOH  VWUHDPV GHFRGHVRQHRQO\ 
RJ\DORQJZLWKDUREXVW3$SURYLGLQJ:RQP:RQFP ‡ 2SWLRQDO 96 %OXHWRRWK SHQ ‡ +RPH EXWWRQ VDPH DV ,'
DQG:RQFP GDQWHDUSLHFHPLF IHDWXUH 
‡ PHPRU\FKDQQHOV ‡ +0FRQWUROPLFURSKRQHLV
‡ $OO PRGH WULEDQG WUDQVFHLYHU 0+]  :    0+]  ‡ %XLOWLQ*36HQJLQH VXSSOLHGDVVWDQGDUG
FRYHUVDQG DQG: 0+] RXWSXW
0+] ‡ µ WRXFK VFUHHQ FRORU 7)7
‡ 6XSSRUWV&:$066%)0 /&'
577<DQG'67$5'9DQG''
PRGHV
‡ 6PRRWKVDWHOOLWHRSHUDWLRQZLWK
QRUPDO  UHYHUVH WUDFNLQJ DQG
([WHQGHG:DUUDQWLHV$YDLODEOH
‡ 'LJLWDO 'DWD ''  PRGH SUR VDWHOOLWHFKDQQHOV IRU,FRP5DGLRV
YLGHVNESVGDWDFRPPXQL
FDWLRQ
‡ 5HDOWLPH KLJKVSHHG VSHF
WUXP  VFRSH DQG ZDWHUIDOO GLV
'HWDLOVRQ3DJH
‡ 3$KDVDSRZHUIXO:  SOD\

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


'67$5&(175$/
'6WDU'XDO%DQG FP+DQGKHOGV
,'$3OXV'67$5Š ‡ :RXWSXWSRZHU ‡ 998898GXDOZDWFKUHFHLYHV
‡ 9+)8+)GXDOEDQG WZREDQGVVLPXOWDQHRXVO\ ,'$
FP+DQGKHOG ‡ ,QWHJUDWHG*36UHFHLYHU 3/862QO\
:LWK7HUPLQDO0RGH ‡ )RXU SRZHU VHWWLQJV DYDLODEOH ‡ &7&66DQG'7&6
: ‡ ,QWHJUDWHG*36SRVLWLRQGDWDFDQ
DQG$FFHVV3RLQW0RGH ‡ ,QFOXGHV ,&23&/8 GDWD EH VHQW VLPXOWDQHRXVO\ $OWLWXGH
7KH ,'$ 3/86 LV D  : 8+) VLQJOH EDQGHU ERWK FDEOH ,'$3/862QO\ GDWDDGGHGWR*36PHPRULHV
ZLWK'67$5DQGLQWHJUDWHG*36UHFHLYHU<RXFDQXVH ‡ 7UDQVPLW  DQG  ‡ 5HSHDWHUVHDUFKIXQFWLRQVHDUFK
DQRWKHU '67$5 UDGLR WR VHQG \RXU YRLFH DQGRU GDWD 0+] ,'$3/862QO\ HVXSWRQHDUE\
WKURXJKWKHDFFHVVSRLQWUDGLRDQGFRPPXQLFDWHZLWK ‡ 5HFHLYH$% ‡ (QKDQFHG '356 IXQFWLRQV UH
'67$5VWDWLRQVDOORYHUWKHZRUOG,WVIHDWXUHVDUHVLPL  0+] ,'$ 3/86 FHLYLQJ RQO\ EDVH  REMHFW  LWHP
ODUWRWKH,'$3/86 2QO\ ZHDWKHUIRUPDWV
‡ %URDGFDVW UHFHLYH  ‡ 6HQG &,9 FRPPDQGV WKURXJK
7KHUDGLRIHDWXUHV7HUPLQDO0RGH$F 0+] '$7$FRQQHFWRU
FHVV 3RLQW 0RGH '9  )0 5HSHDWHU ‡ /LVWHQWR)0$0DQG6:/ZKLOH ‡ &DOOVLJQ UHSHDWHU OLVW DQG *36
6HDUFK)XQFWLRQ'93DVW'DWD0RGH XVLQJWKHGXDOZDWFKIXQFWLRQIRU PHPRU\LPSRUWDQGH[SRUWLQWKH
,QWHJUDWHG *36 5HFHLYHU PLFUR6' KDPEDQGV ,'$3/862QO\ &69IRUPDW
&DUG 6ORW ,3; ZDWHUSURRI FRQVWUXF ‡ 0LFUR6' FDUG VORW IRU YRLFH ORJ ‡ 5606$ $QGURLGŒ DSSOLFD
WLRQ DQG 5606$ UHPRWH FRQWURO GDWDVWRUDJHDQGGDWDFORQLQJ WLRQIRUWKH$3OXVRQO\ 23&
VRIWZDUH IUHHGRZQORDG$QGURLGŒDS ‡ 9RLFHPHPRU\UHFRUGVLQFRPLQJ /8FDEOHQRZLQFOXGHG 
SOLFDWLRQIURP*RRJOH3OD\Œ 7KH,' DQGRXWJRLQJFDOOV&DQEHXVHG ‡ $GGLWLRQDO GSOXV UHÁHFWRU OLQN
$LVDYDLODEOHLQ5HG6LOYHUDQG*ROG DVDYRLFHUHFRUGHU FRPPDQGV
FRORUYHUVLRQV ‡ $XWRPDWLFSRVLWLRQUHSO\IXQFWLRQ ‡ '9DQG)0UHSHDWHUVHDUFKIXQF
WUDQVPLWV \RXU FXUUHQW SRVLWLRQ WLRQ
2WKHU)HDWXUHVLQFOXGH ZKHQUHFHLYLQJDFDOO ‡ &,9 FRPPDQGV DGGHG VXFK DV
‡7KUHHKRXUVUDSLGFKDUJLQJZLWKVXS
‡ &69IRUPDWWHGFRPORJ*36ORJ *367;PRGH'9GDWD7;DQG
SOLHGZDOOFKDUJHU %3 
IXQFWLRQ *36212))VHWWLQJV
‡/RQJODVWLQJEDWWHU\SDFN
‡ PHPRU\FKDQQHOV ‡ 3&SURJUDPPDEOH&6FORQLQJ
‡ &63/86 SURJUDPPLQJ VRIWZDUH
‡ 6HQGDQGUHFHLYHSLFWXUHV VRIWZDUHVXSSOLHG
VXSSOLHG
‡(QKDQFHG'356IXQFWLRQVOLQNFRP ‡ '67$5'9PRGHZLWKLPSURYHG ‡ )XOOGRWPDWUL[GLVSOD\DQGGLUHF
PDQGV GDWDWUDQVIHU WLRQDONH\SDG
‡ 6SHHFKIXQFWLRQJLYHVIUHTXHQF\ ‡ &KRRVH%ODFN%OXH&ORXG*UD\
PRGHDQGFDOOVLJQ &DPR *UHHQ /HDI 5HG &URVV
‡ ,3;VXEPHUVLEOH IRUWKH,'$3OXV

,'$3OXV'67$5Š
7HUPLQDO0RGH
'XDO%DQG
PFP+DQGKHOG
:LWK7HUPLQDO0RGHDQG
$FFHVV3RLQW0RGH
7KH '67$5 HYROXWLRQ FRQWLQXHV DV
,FRP LQWURGXFHV WKH WKLUG JHQHUDWLRQ
,'$ 3/86 DGGLQJ WZR 1(: '
$FFHVV3RLQW0RGH
67$5 PRGHV RI RSHUDWLRQ 7HUPLQDO
0RGHDQG$FFHVV3RLQW0RGH7KHQHZ
PRGHVDOORZ\RXWRPDNHFDOOVWKURXJK
WKH,QWHUQHWHYHQIURPDUHDVZKHUHQR
'67$5UHSHDWHULVDFFHVVLEOH

,FRP0RELOH6SHFLÀFDWLRQV

‚([WHQGHGUHFHLYHUFRYHUDJH0+] DLUEDQGLQFOXGHG 0+]H[WHQGHGUHFHLYHUUDQJH6HHWH[WZLWKUDGLR

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


+)5,*6
+)0+]7UDQVFHLYHU

766
&$//+523ULFH

7KH.HQZRRG766WUDQVFHLYHU
766&$//+523ULFH IHDWXUHVDIXOOGRZQFRQYHUVLRQUH
7KH766UDLVHVWKHEDURQ+)SHUIRUPDQFHDQG FHLYHUZLWKKPRGHPL[HUDQG+LJK&1VW/2ZLWKIRXUEXLOWLQURRÀQJÀOWHUV+]
'; RSHUDWLQJ HDVH 'XDO GLVSOD\ DQG GXDO ZDWFK N+]N+]DQGN+] RSWLRQDO+] 7KLVQHZWUDQVFHLYHUKDVDLQFKFRORU7)7GLVSOD\
JLYHV\RXWKHHGJHLQ';FRQWHVWLQJ DQGLQFOXGHVURRÀQJIUHTXHQF\VDPSOLQJEDQGVFRSHDXWRVFUROOPRGHDQGPXOWLLQIRUPDWLRQ
VFUHHQ+HDY\GXW\FRQVWUXFWLRQDQGDKLJKVSHHG:DQWHQQDWXQHUFRPHVWDQGDUG
‡ )UHTXHQF\ UDQJH +) H[WHUQDOWHUPLQDOV 7KHFRQÀJXUDWLRQRIWKHEDQGVFRSHUHFHLYHUKDVFKDQJHGIURPWKHVXSHUKHWHURG\QHV\VWHP
0+] ‡ $GYDQFHG $*& ² XVHGLQWKH766WRVW,)VDPSOLQJXVLQJDQ$'FRQYHUWHU ELW0+] DQG)3*$
‡ 2XWSXWSZU: GLJLWDODQGDQDORJ GLJLWDOGRZQFRQYHUVLRQ7KLVPHDQVDFKDQJHLQVFDQQLQJPHWKRGIURPVWHS))7WR))7
‡ %XLOWLQ DQWHQQD WXQ ‡ VWHS VSOLW IUHTXHQ DFKLHYLQJKLJKVSHHGXSGDWHVWRWKHGLVSOD\LUUHVSHFWLYHRIVSDQVHWWLQJV
HU F\ FRQÀJXUDWLRQ IRU ‡ &URVVWRQH ‡ 1RWFKÀOWHUQRLVHEODQNHU
‡ 0RGH 66% &: TXLFNVHWXS ‡ ,)ÀOWHUVKDSH$)ÀOWHU ‡ +LJKO\UHOLDEOH:ÀQDOVWDJHDPSOLÀHU
)6.36.)0$0 ‡ 0D[LPXP RI  ‡ $XGLRSHDNÀOWHU$*&TXLFNUHFRYHU\ FLUFXLWIRU+)DQG0+]
‡ %XLOWLQ VZLWFKLQJ PHPRU\ FKDQQHOV
SRZHUVXSSO\ 'XDO FKDQQHO PHP
‡ &RPPSRUWV86%$ RU\ DOORZV DFFHVV +)0+]$OO0RGH7UDQVFHLYHU
%DQG/$1 ZKLOH UHFHLYLQJ WZR
‡ 'XDO7)7GLVSOD\DQG IUHTXHQFLHV VLPXOWD
GXDO UHFHLYHU 0DLQ QHRXVO\ 3HHUOHVV3HUIRUPDQFH
GLVSOD\ PRQLWRUV WDU ‡ 0HPRU\ DFFHVVLEOH
JHWVLJQDOYLFLQLW\DQG GXULQJ VSOLWVXE UH 766*
VXE GLVSOD\ PRQLWRUV FHLYHURSHUDWLRQ
&$//+523ULFH
DFWXDOWDUJHWVLJQDO ‡ 7ZR86%VRFNHWVRQ
‡ 'RZQ FRQYHUVLRQ IRU IURQWSDQHO 7KH 766* LV DQ XSJUDGH WR
DOO $PDWHXU 5DGLR ‡ )LUPZDUHXSGDWHVYLD WKH 766 DQG IHDWXUHV D QDU
%DQGV PDLQ UHFHLY 86%VWLFNRUFDEOH URZEDQG URRÀQJ ÀOWHU WR VLJQLÀ
HU  ‡ 9&2 GLYLVLRQW\SH FDQWO\UHGXFHLQWHUIHUHQFHIURPXQZDQWHGVLJQDOV7KHUHVXOWLQJH[FHOOHQW5;SHUIRPDQFH
‡ ,3   G%P PL[HU ÀUVW RVFLOODWRU GLYLGHV UHYHDOVVLJQDOVWKDWZRXOGEHKLGGHQWROHVVHUULJV:LWK,)$*&EDVHGRQDGYDQFHG'63
SHUIRUPDQFH KLJK IUHTXHQFLHV WR WHFKQRORJ\.HQZRRGKDVHVVHQWLDOO\UHGHÀQHG+)SHUIRUPDQFH
‡ 1DUURZEDQG KLJK,3 HQVXUHKLJK&1
URRÀQJÀOWHUV ‡ 'HGLFDWHG WULSOH ‡ +DVVKDUS+]N+]URRÀQJÀOWHU ‡ 'LUHFW IUHTXHQF\ HQWU\ 86% FRQQHFWLY
‡ 7&;2 “ SSP IRU ELW ÁRDWLQJ SRLQW DQGGHGLFDWHGÀUVWPL[HU LW\IRU3&FRQWUROUHPRWHFRQWUROXVLQJD
KLJKVWDELOLW\UHFHLYH '63VIRUPDLQ VXE ‡ %XLOWLQHOHFWURQLFPHPRU\NH\HU FRPSXWHURSWLRQDOYRLFHJXLGHDQGVWRU
‡ 'HGLFDWHG WULSOH UHFHLYHUV SOXV EDQG ‡ 3URJUDPPDEOHNH\VPHPRU\FKDQ DJHXQLW
'63IRUPDLQ VXE VFRSH DXGLR VFRSH QHOV PHPRU\ VFUROO IXQFWLRQ PXOWLSOH ‡ 0RUVHFRGHGHFRGHUIXQFWLRQ
UHFHLYHUV SOXV EDQG DQG6PHWHU VFDQIXQFWLRQV ‡ 7UDQVPLWWHU IHDWXUHV  :DWW KHDY\
VFRSH ‡ &RROLQJ V\VWHP FD ‡ $GYDQFHG $*& WKURXJK GLJLWDO VLJQDO GXW\ GHVLJQ EXLOWLQ DXWRPDWLF DQWHQQD
‡ 5HPRWH 3& RSHUD SDEOH RI SURYLGLQJ SURFHVVLQJ IURP WKH ,) VWDJH RQZDUG WXQHU RSWLRQDO 7&;2 GULYH RXWSXW
WLRQ DPSOHDLUÁRZWRHDFK GLJLWDO,)ÀOWHUVGHWHFWLRQDQGGHPRGXOD VSHHFKSURFHVVRU 66%$0)0 DG
‡ 'DWDPRGHIDFLOLWDWHV XQLW WR HQVXUH D VWD WLRQQRLVHUHGXFWLRQDQG,)QRWFK,)DXWR MXVWDEOH7;ÀOWHU 66%$0 7;HTXDO
VZLWFKLQJ EHWZHHQ EOH:RXWSXW QRWFK,)$*&$)GLJLWDOVLJQDOSURFHVV L]HU 7; PRQLWRU 92; DGMXVWDEOH 7;
LQJWZRW\SHVRIQRLVHUHGXFWLRQDQG7; SRZHURXWSXWDQG&$5OHYHO
.HQZRRG+)6SHFLÀFDWLRQV DXGLRVKDSLQJ ‡ 6SOLWIXQFWLRQHQDEOLQJTXLFNVHWWLQJ

'RXEOH&RQYHUVLRQ66%&:$07ULSOH)0  +] 2XWSXW0+]:DQG0+]:


‚2XWSXW0+;::$0$7::$0

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


02%,/(6
0HWHUVSOXV:HDWKHU 'XDO%DQG0RELOHV
70$ 70'*
 PFP
&$//
²+52'LVFRXQW3ULFH &$//²+52'LVFRXQW3ULFH

.HQZRRGSURYLGHVDGYDQFHG$356Š
KDPUDGLRHTXLSPHQWZLWKWKH70
'*PRELOHWUDQVFHLYHU,WRIIHUV
2QRURIIURDGWKH70$GHOLYHUVSRZHUIXOPRELOHSHUIRUPDQFH
HYHQPRUHIHDWXUHVDQGYHUVDWLOLW\WKDQLWV
ZLWK:PD[LPXPRXWSXW7KHZHDWKHUDOHUWUDGLRIXQFWLRQFKHFNV
SUHGHFHVVRU7KHGHWDFKDEOHFRQWUROKHDGFRPHVZLWKUHPRWHFDEOHIRUHDV\
WKH+]WRQHIURP12$$ 86RQO\ 7KHUDGLRIHDWXUHV
LQVWDOODWLRQ7KHUDGLRLQFRUSRUDWHVDSLQ3&FRQQHFWLRQIRUHDV\KRRNXSWR
PHPRULHV  LI PHPRU\ FKDQQHO QDPHV DUH DVVLJQHG WR WKH
SURJUDPIUHTXHQFLHVDQGRWKHU$356ŠPDSSLQJSURJUDPV<RXU70'*LVD
FKDQQHOV PHQXIRUHDV\FRQWURODQGIXQFWLRQVHOHFWLRQ&7&66
IXOOGXDOEDQGUDGLRVR9+)9+)9+)8+)8+)8+)RSHUDWLRQLVSRVVLEOH
RU'&6WRUHMHFWXQZDQWHGFDOOVHDV\WRUHDGODUJH/&'DOSKDQX
)XOOGLJLSHDWHUIXQFWLRQVDOORZDQ\RQHWRVHWXSDGLJLSHDWHUORFDWLRQZKHUHYHU
PHULFGLVSOD\)0DQGQDUURZEDQG)0UHDG\DQGIUHH3&PHPRU\
QHHGHGWRKHOSÀOOLQ$356ŠQDWLRQZLGHQHWZRUN,QWHUQHWJDWHZD\RSHUDWLRQLV
FRQWUROVRIWZDUHLVDYDLODEOH
DOVRSRVVLEOHIRUZRUOGZLGHWH[WFRPPXQLFDWLRQRYHU9+)

$FFHVVRULHV ‡ 1RZ LQFOXGHV EXLOWLQ *36 DQG ‡ 7KUHHGLIIHUHQW$356ŠJULGV


XSJUDGHGÀUPZDUH ‡ (FKR/LQNŠUHDG\ZLWKGHGLFDWHG
‡ 2XWSXW:9+)8+) PHPRULHV
‡ 5HFHLYHV  0+] FHOOXODU ‡$356Š 46< IXQFWLRQ GHOD\ DO
63 EORFNHG  JRULWKP YRLFH DOHUW DQG ZHDWKHU
([WHUQDO6SHDNHU ‡ 7ZREDFNOLJKWFRORUVDPEHUJUHHQ EHDFRQLQJ
‡ $OSKDQXPHULF GRWPDWUL[ /&' GLV ‡ 'XDO UHFHLYH DQG 12$$ ZHDWKHU
'HVLJQHG WR PDWFK .HQZRRGҋV 76
SOD\ DOHUW
6 WKLV H[WHUQDO VSHDNHU IHDWXUHV
‡ (DV\WRXVH PHQXV  PHPR ‡ 6N\&RPPDQG,,
GXDOLQSXWVDQGKLJKFXWDQGORZFXW
ULHV ‡ 6RXQGFDUGLQWHUIDFH
ÀOWHUVDVZHOODVDKHDGSKRQHMDFNRQ
‡ ,QWHUQDOFORFNIRU$356ŠWLPH GDWH ‡ 9*6 YRLFH JXLGH DQG VWRUDJH
WKHIURQW
VWDPSLQJ RSWLRQDO
‡ $356ŠÀOWHUDQGVRUWIXQFWLRQV ‡ 10($*36L2SRUW
.36 ‡ $356ŠVSHHGDQGDOWLWXGHEHDFRQ ‡ )UHH0&3SURJUDPPLQJVRIWZDUH
6ZLWFKLQJ3RZHU6XSSO\ LQJ
3URYLGHV  9 DW $ FRQWLQXRXV RU $ VXUJH +RXVHG LQ
D KHDY\ PHWDO FDVH
ZLWK DQ LQWHUQDO FRRO 709$
LQJ IDQ WKLV VPDOO PFP
VXSSO\ ZHLJKV MXVW
RYHUOEV
.HQZRRG
V709$)0GXDO
0& EDQGHULVHTXLSSHGWRVKLQHLQDQ\PRELOHFRPPXQLFDWLRQVUROH,WIHDWXUHV
:RXWSXWPHPRU\FKDQQHOVPXOWLSOHVFDQRSWLRQVDQG3&FRQQHFWLYLW\
'HVN0LFURSKRQH
$ KLJKTXDOLW\ '63FRPSDWLEOH GHVN WRS PL ‡ +LJKSRZHURXWSXW:RQ9+) ‡ FRGHGLJLWDOFRGHVTXHOFK
FURSKRQH ZLWK 83  '2:1 377  377 ORFN 8+) ‡ ,QYHUWLEOHIURQWSDQHO
IXQFWLRQV ZLUHG ZLWK DQ SLQ URXQG SOXJ ,W LV ‡ 6DPHEDQGGXDOUHFHLYH 9988 ‡ &KRLFHRIEDFNOLJKW DPEHUJUHHQ 
VXSSOLHGZLWKWZRLQWHUFKDQJHDEOHEDIÁHGZLQG 98  ‡ 9RLFHJXLGDQFHDQGVWRUDJHRSWLRQ
VFUHHQVZKLFKRIIHUHLWKHUDZLGHUDQJHIUH ‡ &RPSDWLEOHZLWK$55/7UDYHO3OXV ZLWKRSWLRQDO9*6
TXHQF\ UHVSRQVH RU D ´';µ UHVSRQVH ZLWK ‡ )LYHLQ2QHSURJUDPPDEOHPHP ‡ :HDWKHUDOHUW5; 86RQO\ 
SHDNUHVSRQVHDWDURXQGN+] RU\ VWRULQJ ÀYH GLIIHUHQW RSHUDWLQJ ‡ (FKR/LQNŠ 6\VRS PRGH IRU QRGH
SURÀOHV WHUPLQDORSHUDWLRQ
‡  VSOLW PHPRU\ FKDQQHOV SOXV ‡ (FKR/LQNŠPHPRU\DXWRGLDOHU
0& DQDGGLWLRQDOIRUSURJUDPPDEOH ‡ :LGH EDQG UHFHLYH  0+]
'HVN0LFURSKRQH VFDQ DQG0+]FHOOXODUEORFNHG 
‡ 3& SURJUDPPDEOH Z3** RS ‡ %DFNOLW0&NH\KDQGPLF
$G\QDPLFPRYLQJFRLOW\SHXQLGLUHFWLRQDOGHVN WLRQDO  ‡ 6HOHFWDEOH UHSHDWHU RIIVHW RU DXWR
PLFURSKRQHZLWK377377ORFNDQGVZLYHOFDSD ‡ %XLOWLQ&7&66'&6HQFRGHU UHSHDWHURIIVHW RQ9+)RQO\ 
ELOLW\DOVRLQFOXGHVDVZLWFKDEOHSUHDPS%DWWHU
LHVDUHLQFOXGHGDQGPXVWEHLQVWDOOHGIRU
SUHDPS RSHUDWLRQ 'XDO LPSHGDQFH
2KP.2KPVOLGHVZLWFKVH +522IIHUV([WHQGHG:DUUDQWLHVRQ
OHFWDEOH&RPHVZLWKSLQURXQGFRQ
QHFWRU EXW FDQ EH XVHG ZLWK .HQZRRG .HQZRRG5DGLRV6HH3DJH
5-HTXLSSHGUDGLRVXVLQJRSWLRQDO0-DGDSWHU

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


+$1'+(/'6
$356'67$5Š
6LQJOH%DQG 'XDO%DQG
7+.$ 7+'$ 7+'$
P P0K]FP
PFP
7UL%DQG
7KLVPHWHUKDQGKHOGLVWKHVXF
(QKDQFHG*36
FHVVRUWRWKH7+.VHULHV $356ŠFDSDELOLW\
7KHLQGXVWU\ҋVÀUVWSRUWDEOHDPDWHXUUDGLRVXSSRUWLQJ

ERWK$356DQG'67$5Š
‡ 7RQHDOHUW EHOO  ‡  P   FP WUDQVPLW ZLWK ZLGH EDQG
‡ &URVVWRQH UHFHLYH
‡ 7UDQVPLWVDQG0+]
‡ :5)RXWSXW ‡ 'XDOUHFHLYH99889889
‡ )RXUWUDQVPLWSRZHUVHOHFWLRQV :DWWV 
‡ :HDWKHU&+VFDQ ‡ :DWWVWUDQVPLW
‡ %DQG$UHFHLYHV 0+]
‡ 92;,QFOXGHG RSWLRQDOKHDGVHW ‡ %XLOWLQ*36XVHVWKH6L5)
‡ %DQG%5HFHLYHV0+ :)0 
UHTXLUHG  6WDU ,,, FKLSVHW VDPH DV
‡ +LJKSHUIRUPDQFH'63IRUTXDOLW\DXGLR
‡ %DWWHU\FDSDFLW\LQGLFDWRU *DUPLQ 
‡ 7)7FRORU/&'IRUH[FHOOHQWYLVLELOLW\
‡ $XWRUHSHDWHURIIVHW ‡ *36WUDFNORJJLQJIXQFWLRQ
‡ $356GDWDWUDQVPLVVLRQUHFHSWLRQ
‡ 'LUHFWIXQFWLRQNH\ 0HPRU\ FDQ EH RXWSXW WR
‡ %XLOWLQ*36%XLOWLQ71&
‡ )LUPZDUHXSJUDGDEOH 3&LQ.0/IRUPDWWREHGLV
‡ 6WRUHXSWRVWDWLRQV
‡ %XLOWLQ &7&66 '&6 SOD\HGRQ*RRJOH0DSV
‡ $OSKDPHPRULHV
DQG  +] WRQH ‡ PHPRU\FKDQQHOVZLWK
‡ 46<IXQFWLRQ
EXUVW GLJLWDOSKDQDPHIXQFWLRQ
‡ '6WDUFRPSDWLEOH
‡ 'LUHFWIUHTXHQF\HQWU\ ‡ %XLOW LQ    71&
‡ '9IDVWGDWDPRGH
‡ $XWRUHSHDWHURIIVHW $;ZLWK.,66PRGHDQG
‡ :LGHEDQGPXOWLPRGHUHFHSWLRQ
‡ 7LPHRXWWLPHU GLJLSHDWIXQFWLRQV
‡ )OH[LEOHRSHUDWLRQRIYRLFHPRGHDQG
‡ %HDWVKLIW ‡ 0LQL86%FRQQHFWRUEXLOWLQ
GDWDPRGH
‡ )UHTXHQF\VKLIW ‡ %XLOWLQ.HQZRRG6N\&RP
‡ ,) ÀOWHU KDQGOHV DGMDFHQW XQZDQWHG
‡ .H\ORFNW\SHVHOHFW PDQG,,
VLJQDOV
‡ 6PDUWEHDFRQLQJ
‡ ,)RXWSXWPRGH
‡ ([WHUQDO *36
‡ :HDWKHUSURRI ,3 
UHDG\ EXLOW LQ
‡ %OXHWRRWKŠVWDQGDUG
56 FRP
SRUW VDPH DV
' 
‡ $LU EDQG 5;
ZLWK  N+]
VWHS
‡ )UHH SURJUDP
.HQZRRG9+)8+)6SHFLÀFDWLRQV
PLQJVRIWZDUH

+DQGKHOG%DWWHU\3DFNV

+522IIHUV([WHQGHG
:DUUDQWLHVIRU.HQZRRG5DGLRV

.HQZRRG+DQGKHOG6SHFLÀFDWLRQV

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


+)%$6(67$7,21
'HVN0LFURSKRQHV
7KH/HJHQG&RQWLQXHV

7KH7UDQVFHLYHUWKDWRQO\<DHVXFRXOGFUHDWH
0
&$//
,WҋV1HZ,WҋV%ROG,WҋVD/HJHQGLQWKH0DNLQJ
+523ULFH

5HYROXWLRQDU\ GXDO PLFUR


SKRQH FRQÀJXUDWLRQ KDV
ERWK G\QDPLF IRU GHSWK
DQG ZDUPWK  DQG
FRQGHQVHU IRU
FULVS KLJKV  HOH
PHQWV 7KH 0
OHWV \RX DGMXVW WKH EDODQFH RI WKH WZR
PLFURSKRQH VRXUFHV WR FUHDWH D VRXQG
WKDWLVMXVWULJKWIRU\RXUYRLFH7KHQLQH
EDQG JUDSKLF HTXDOL]HU DSSOLHV WR HDFK
PLF HOHPHQW LQGHSHQGHQWO\ $ FOLSRQ
FRZOLQJHQKDQFHVWKHUHVSRQVHRIERWK
HOHPHQWV E\ PLQLPL]LQJ DXUDO LQWHUIHU
HQFH7KH VROLG DOXPLQXP GLH FDVW PLF
VWDQG SUHYHQWV V\PSDWKHWLF YLEUDWLRQ )7';03 )7';'
7KHFHQWUDOUHFHVVHGFRQWUROSDQHOKDV +)0+]7UDQVFHLYHU +)0+]7UDQVFHLYHU
EHHQFRQÀJXUHGIRUHDVHRIXVH&KHFN
\RXU YRLFH LQ WKH KHDGSKRQHV ZLWK WKH : :
EXLOWLQUHFRUGDQGSOD\EDFNIHDWXUH7KH
7KHQHZ)7';VHULHVLV )HDWXUHVLQFOXGH
EXLOWLQ PHPRU\ FDQ VWRUH WZR GLIIHUHQW
JURXSVRIVHWWLQJVIRUHDFKPLFURSKRQH
DQLPSUHVVLYHDFKLHYHPHQW
‡ 6XSHUEFODVVOHDGLQJFORVHLQG\QDPLFUDQJH
IURP <DHVXҋV HOLWH ´)7';µ
GHVLJQ WHDP XWLOL]LQJ WKH ‡ )7';':DWWVDOOPRGHVH[FHSW$0 : 
0'$; YHU\ ODWHVW 6'5 WHFKQRO
&$// ‡ )7';03:DWWVDOOPRGHVH[FHSW$0 : 
RJ\DQGEULOOLDQWO\H[HFXWHG
+523ULFH
ÀUPZDUHWR\LHOGDKLJKHQG ‡ 0+],)URRÀQJÀOWHUIRUH[FHOOHQWFORVHLQ,0'LPPXQLW\
WUDQVFHLYHU WKDW H[XGHV
‡  0+] +5''6 KLJK UHVROXWLRQ GLUHFW GLJLWDO V\QWKH
TXDOLW\ DQG KLJK SHUIRU
VL]HU 
PDQFH%XLOGLQJRQWKHOHJ
7 K L V DF\ RI WKH OHJHQGDU\ EHVW ‡ +\EULG6'5GLUHFWGDPSOLQJ 1%: QDUURZEDQGZLGWK 
GHVN VHOOLQJ)7OLQHWKHQHZ 6'5WHFKQRORJ\
PLF KDV )7'; VHULHV VWDQGV WR
V H O H F W D E O H FUHDWH LWV RZQ OHJDF\ DV ‡ &RPSOHWHO\LQGHSHQGHQWGXDOUHFHLYHUV
ORZFXWÀOWHULQJDQG RQH RI WKH EHVW SHUIRUPHUV ‡ +LJK49&WXQLQJIURQWHQGZLWKJHQHUDOFRYHUDJH5;
KLJKHPSKDVLV DFWLYH
HYHU DYDLODEOH WR WKH HOLWH
ÀOWHULQJWKDWDOORZ\RXWRWDLORU ‡ <DHVX UHQRZQHG LQWHUIHUHQFH UHGXFWLRQ V\VWHP ZLWK
WKH PLFURSKRQH UHVSRQVH IRU RSWLPXP FODVVRSHUDWRU
ELW,)'63DQGGLJLWDOQRLVHUHGXFWLRQDQG'63DXWR
YRLFHFODULW\RU';SXQFK,WKDVDODUJH
SXVKWRWDONVZLWFKDQGODWFKLQJEXWWRQ
QRWFK
DORQJZLWKDODUJHURWDU\XSGRZQVORZ ‡ /DUJH WRXFKSDQHO SUHFLVLRQ FRORU GLVSOD\ DQG H[WHUQDO
IDVWFRQWUROIRUVFDQQLQJ
GLVSOD\RXWSXW
0'$; 9LVLW+52 ‡ 5LFK VSDUNOLQJ DXGLR TXDOLW\ RQ ERWK WUDQVPLW DQG UH
&$// FHLYH
+523ULFH RQWKH:HE
‡ '66 WKUHH GLPHQVLRQ VSHFWUXP VWUHDP  ZDWHUIDOO GLV
'HVNPLFURSKRQHGHVLJQHG
DW SOD\DQDOOQHZ<DHVXH[FOXVLYH
IRU EDVH VWDWLRQ XVH ZLWK KDPUDGLRFRP
‡ $FWLYHEDQGLQGLFDWRUZLWK/('LOOXPLQDWLRQRIWKHRSHUDW
<DHVX
V QHZHVW JHQHUDWLRQ
WUDQVFHLYHUV )HDWXUHV D
WR&KHFN LQJEDQGIDFLOLWDWHVUDSLGPLVWDNHIUHHEDQGFKDQJHV
VWXGLRTXDOLW\ SRO\HWK\OHQH IRU ‡ 039' PXOWLSXUSRVH9)2RXWHUGLDO SURYLGHVVXE9)2
WHUDSKWKDODWHÀOPG\QDPLF
HOHPHQW 3URYLVLRQ IRU 6SHFLDO WXQLQJ FODULÀHU RSHUDWLRQ 9&781( DGMXVWPHQW 9)2
LQFRUSRUDWLQJ XVHU VXS 2IIHUV ÀQHWXQLQJRUD&6 FXVWRPVHOHFWLRQ IXQFWLRQ
SOLHG PLNH HOHPHQW ZLWK
DVZLWFKWRVHOHFWEHWZHHQWKHVWDQGDUG ‡ 03 :DWW YHUVLRQ LQFOXGHV ODUJHU KHDWVLQN DQG IDQ
DQGXVHUHOHPHQW DQGXVHVH[WHUQDOVSHDNHUSRZHUVXSSO\

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


+)75$16&(,9(56

)7';
+)0+]:DWW7UDQVFHLYHU
)7G[03/LPLWHG 7KH)7';LVRQHRIWKHORQJOLQHRIWRSSHUIRUPLQJ<DHVX)7';
&$//IRU+523ULFH WUDQVFHLYHUV,WLQKHULWVWKHGHVLJQFRQFHSWVRIWKH)7G[WUDQVFHLYHU
WKDWKDVUHFHLYHGKLJKSUDLVHIURPDOORYHUWKHZRUOGE\WKRVHSXUVXLQJWKH
7KH)7';03/LPLWHG+)0+]:DWW
KLJKHVWLGHDORIDPDWHXU+)FRPPXQLFDWLRQHTXLSPHQW
WUDQVFHLYHULVDSUHPLXPFODVV<DHVXUDGLRZLWK
7KH )7 ';  H[KLELWV SKHQRPHQDO PXOWLVLJQDO FKDUDFWHULVWLFV ÀUVW
WZRLQGHSHQGHQWUHFHLYHUVSOXVPDQ\XQLTXH GHPRQVWUDWHGLQWKHWRSUDWHG)7';8VLQJWKHWZRVLJQDOG\QDPLF
RSWLRQVDQGDFFHVVRULHVGHVLJQHGWRPHHWWKH UDQJHPHDVXULQJPHWKRGZLWKN+]VLJQDOVHSDUDWLRQWKH)7';
SHUIRUPDQFHUHTXLUHPHQWVRIHYHQWKHPRVWGH SHUIRUPDQFHLVG%,3G%P:LWKIUHTXHQF\VHSDUDWLRQRIRQO\
PDQGLQJDPDWHXURSHUDWRU N+]EHWZHHQWKHGHVLUHGVLJQDODQGDQLQWHUIHULQJVLJQDOWKHG\QDPLF
UDQJHPHDVXUHVG%DQG,3G%P
‡ 7KH)7';03/LPLWHG ‡ 7KUHH HOHFWUROXPLQHVFHQW :LWKDOOLWVIHDWXUHVDQGDPD]LQJSHUIRUPDQFHDWDWUXO\DIIRUGDEOHSULFH
UREXVWDQGKLJKSRZHUÀQDO FOHDU GLVSOD\V LQFOXGHG IRU WKH)7';LVDWHUULÀFULJIRUKRPHRUD';SHGLWLRQ
DPSOLÀHUVWDJHLQFRUSRUDWHV HDVLHU RSHUDWLRQ DQG FRQ
WZR VXSHU UHOLDEOH )(7V WURO RI WKH VXEIUHTXHQF\
95) GUDLQVRXUFH JUDSKLFDO ZDYH DQG PHQX
<DHVX
VODWHVW ‡ )LIWHHQ VHSDUDWH EDQG SDVV
ZLWKDPD]LQJUHFHLYHU ÀOWHUV
YROWDJH9JDWHVRXUFH IXQFWLRQ
‡ N+]URRÀQJÀOWHUIRU66%DQG
YROWDJH“9WRWDOGHYLFH ‡ ELW ÁRDWLQJ SRLQW '63 SHUIRUPDQFHIURPLWV  +] RSWLRQDO  DQG  +]
GLVVLSDWLRQ: LQDSXVK
SXOO FRQÀJXUDWLRQ RIIHULQJ
EDVHG RQ WKH 7, 70 )7';KHULWDJH URRÀQJÀOWHUVIRU&:
6&% #0+]  ‡ &RQWRXU WDLORUV WKH UHFHLYHG
DVROLG:RXWSXW : RQH ($&+ IRU 9)2$ DQG
‡ &RYHUVDOODPDWHXUUDGLREDQGV
IURPWRPHWHUV DXGLR VLJQDO ZLWKRXW FKDQJLQJ
FODVV$RSHUDWLRQ  9)2% WKHEDQGZLGWK
‡7KH)7';03/LPLWHG ‡ *HQHUDOFRYHUDJHUHFHSWLRQIURP
‡ 7UXH DQDORJ PHWHU SUHFL N+]WR0+] ‡ ,)QRWFKKDVDWWHQXDWLRQFKDUDF
KDV LWV RZQ EXLOWLQ SRZHU VLRQ (QMR\ WKH KXJH VL]H WHULVWLFVRIG%RUPRUH
VXSSO\ 9$&  ‡ :DWWRXWSXWRQDOOEDQGV
PHWHULQJV\VWHPDQGLQVWDQW ‡ 'LJLWDOQRLVHUHGXFWLRQE\'63
‡ )0 DQG $0 ZLGH DQG QDUURZ
‡ 7ZR  WRWDOO\LQGHSHQGHQW UHDFWLRQWLPH PRGHV ‡ 0DQ\&:IHDWXUHVLQFOXGLQJ&:
UHFHLYHUVJLYH\RXSHUIRU ‡ ,)RXWSXW 0+] IURP9)2 DXGLRSHDNÀOWHU&:GHFRGH&:
‡ ,)'63IRU450UHMHFWLRQ VSRW $XWR ]HURLQ GLVSOD\ IXOO
PDQFHDQGÁH[LELOLW\SUHYL $PDLQUHFHLYHU
RXVO\RQO\SURYLGHGE\PXFK ‡ +LJKVSHHGVSHFWUXPVFRSH EUHDNLQIRXUPHVVDJHPHPRU\
PRUHH[SHQVLYHUDGLRV ‡ 3URYLGHVORDGVRISUDFWLFDO ‡ $)VFRSHGLVSOD\ FKDUDFWHUVHDFK DXWRPDWLF
OHYHOLQGLFDWLRQWKDWFOHDUO\ ´EHDFRQµNH\HUPRGHDQGVHSD
‡ 6XSHUVKDUS´URRÀQJµÀOWHUV ‡ 577<36.HQFRGHUGHFRGHU
VKRZVHWWLQJVRIPLFURSKRQH UDWHNH\MDFNVRQWKHIURQWDQG
IRU9)2$PDLQUHFHLYHU RSWLRQDO 
JDLQ5)SRZHU&:SLWFK UHDUSDQHOV
)LOWHUV DUH VHOHFWDEOH EH ‡ DQWHQQDFRQQHFWRUV
 NH\HU VSHHG  SURFHVVRU ‡ (IIHFWLYH 450 UHMHFWLRQ LV
WZHHQ  +]  +]  OHYHO  92; GHOD\ WLPH  ‡ %XLOWLQ KLJKVSHHG DXWRPDWLF DFKLHYHGXVLQJELWKLJKVSHHG
N+] SROHFU\VWDOÀOWHU  DQWHQQD WXQHU LQFOXGHG 7KH ÁRDWLQJGHFLPDOSRLQW'637KH
EUHDNLQGHOD\WLPH DQWHQQDWXQHUXVHV/&VZLWFK
N+]N+] SROH0&)  VLJQDOLVSURFHVVHGZLWKWKHKLJK
LQJ,WKDVDODUJHFDSDFLW\ VSHHG0+]FORFNIUHTXHQF\
‡ 9DULDEOH &: DXGLR SHDN 9DOXDEOH FKDQQHOPHPRU\WKHWXQLQJGDWD
ÀOWHUDQGKLJKORZFXWÀOWHU LV DXWRPDWLFDOO\ PHPRUL]HG WR ‡ 0LFURSKRQHDPSOLÀHUZLWKSDUD
LQJFUHDWHGWKURXJKWKHYHU\ 2SWLRQ UHGXFHWXQLQJWLPHZKHQFKDQJ PHWULFHTXDOL]HU
ODWHVW LQ '63 WHFKQRORJ\ ‡ 60 0DWFKLQJ 6WD LQJIUHTXHQF\ ‡ ,)'63VSHHFKSURFHVVRU
&:ZLGWK WLRQ 0RQLWRU  :LWK WKH ‡ 86%LQWHUIDFHHTXLSSHG ‡ GLJLWDOYRLFHPHVVDJHV(DFK
 EDQGVFRSH LV D FRPSOHWH ‡ :LGH YLHZLQJ DQJOH  /&' PHPRU\ FKDQQHO LV FDSDEOH RI
    +] &: SLWFK HQKDQFHG VWHUHR VSHDNHU GLVSOD\ VWRULQJXSWRVHFRQGVRIDXGLR
IUHTXHQF\ a +] V\VWHP ZLWK VXSHUE DXGLR XVLQJWKHRSWLRQDO'96
‡ ,QGHSHQGHQW IUHTXHQF\ GLVSOD\
+]VWHSV  TXDOLW\ ZLWK ZLGHU YLHZLQJ DQJOH DQG ‡ 'LPHQVLRQV[[
KLJKHUFRQWUDVW :[+[' DQGZHLJKVRQO\
SRXQGV
‡ 6LJQDO RXWSXW IRU DQ H[WHUQDO
<DHVXQRZRIIHUV\HDU UHFHLYHUDQG0+],) ‡ ([WHUQDOFRQWURO &$7 LVSRVVLEOH
XVLQJ 86% RU 6HULDO 3RUW WKLV
IDFWRU\ZDUUDQWLHV ‡ 86%LQSXWIRUÀUPZDUHXSGDWHV IHDWXUHPHDQVWKH)7';
‡ ,)ZLGWKDQG,)VKLIWIXQFWLRQV FDQEHUHPRWHO\FRQWUROOHG

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


+)3/86
)7
+)0+]
:DWW
7UDQVFHLYHU
7KH )7 +) $OO 0RGH
0RELOH 7UDQVFHLYHU LV LQ D
)7$7UDQVFHLYHU FRPSDFW SDFNDJH SURYLG
LQJ XQFRPSURPLVHG SHU
+)0+]9+)8+)&)0)'0$'LJLWDO IRUPDQFH IRU ERWK WKH PRELOH DQG
&$//²+52'LVFRXQW3ULFH VWDWLRQDU\$PDWHXURSHUDWRU+LJKHQG%LWÁRDWLQJSRLQW'63 HQKDQFHVWKH
7KHQH[WJHQHUDWLRQ)7$QRZIHDWXUHVDUHDOWLPHVSHFWUXP RSHUDWLQJ H[SHULHQFH SURYLGLQJ D FOHDQHU FOHDUHU VLJQDO DQG UHGXFLQJ RYHUDOO
VFRSHDQGDPXOWLFRORUZDWHUIDOOGLVSOD\7KH)7$RSHUDWHV RSHUDWRUIDWLJXHFUHDWLQJDPRUHHQMR\DEOHHQYLURQPHQWIRUDQ\$PDWHXURSHUDWRU
RQ66%&:$0)0SDFNHWDQGV\VWHPIXVLRQ&)0GLJLWDO ‡ 5HFHLYHUFRYHUDJHN+]WR0+] ‡ 7KUHH SURJUDPPDEOH IURQW SDQHO
:KHWKHU\RXRSHUDWHDWKRPHPRELOHRULQWKHÀHOGWKH)7$
‡ )0$0&:DQG66% IXQFWLRQNH\V
ZLOOSURYLGHRXWVWDQGLQJIXQGDPHQWDOSHUIRUPDQFHDQGLQYLWHH[
‡ :66%&:)0:$0 ‡ 3RSXS PHQX IRU TXLFN DQG HDV\
SDQVLRQLQWRDIXOOIHDWXUHGEDVHVWDWLRQ8QFRPSURPLVLQJUHFHLYHU
‡ $ QDWLYH 86% FRQQHFWLRQ VXSSRUWV QDYLJDWLRQ
FLUFXLWHQVXUHVH[FHOOHQWSHUIRUPDQFHIURP+)WR9+)8+)
3&FRQQHFWLYLW\ZLWKDVLQJOHFDEOH ‡ 2SWLRQDO)&DQWHQQDWXQHU
‡  ELW KLJK VSHHG ÁRDWLQJ DOORZLQJIRUIXOOULJFRQWUROYLDDYLUWXDO ‡ &RPSDWLWDEOHZLWKRSWLRQDO$7$6
‡ 5HFHLYH FRYHUDJH  P
WKURXJKFP SRLQW,)'63 VHULDOSRUWFRQQHFWLRQ 9&3  $FWLYH$QWHQQD6\VWHP
‡ 7UDQVPLWV: +)  ‡ ,)ZLGWKDQG,)VKLIW ‡ /DUJHWUDQVPLWUHFHLYHLQGLFDWRU
: P : FP  ‡ &RQWRXU '15 ,) 1RWFK ‡ /DUJHGLDPHWHU0DLQ7XQLQJ'LDO µ
‡ LQFK7)7IXOOFRORUWRXFK $3)IRU&:RQO\ PP ZLWKWRUTXHDGMXVWPHQW
SDQHORSHUDWLRQ ‡ PKLJKVSHHGDXWR
‡ +LJKVSHHGVSHFWUXPVFRSH PDWLFDQWHQQDWXQHU PPPFP)0
ZLWKDXWRPDWLFFRQWUROEXLOW ‡ )XOOFRORU7)7/&'GLVSOD\ )75
LQ )RXUXVHUGHÀQHGIXQFWLRQ &$//²+523ULFH
‡ 5RRÀQJÀOWHUN+]DQG NH\V
N+] ‡ (OHFWURQLF NH\LQJ ZLWK
EUHDNLQVXSSRUWHOHFWURQLF 7KH )7 FRP
‡ 7ULSOHFRQYHUVLRQZLWKVW,)
NH\HUZHLJKWFRQWURO ELQHV WUDGLWLRQDO
IUHTXHQF\RI0+]RQ
‡ 0HVVDJHPHPRU\IXQFWLRQ P  FP ORFDO
DOOEDQGV
‡  WRQH &7&66 HQFRGHU  FRPPXQLFDWLRQV ZLWK
‡ +LJK DFFXUDF\ 7&;2
GHFRGHUIRU)0RSHUDWLRQ WKH H[FLWLQJ FDSDELOLW\ RI
“SSP
‡ &RPSDWLWDEOHZLWKRSWLRQDO 6SRUDGLF(RU)';RQWKH
‡ 6HSDUDWH5)DPSVIRUEHVW
$7$6 $FWLYH $QWHQQD PDQGPEDQGVDOORZLQJQDWLRQZLGH)0FRPPXQLFDWLRQ
FKDUDFWHULVWLFRQHDFKEDQG
‡ +LJK UHVROXWLRQ ''6 DQG 6\VWHP
‡ &RYHUV ‡ 0RUH WKDQ  PHPRU\ FKDQQHOV
3//ORFDORVFLOODWRU 0+]DQG0+] FHO  UHJXODU  KRPH  VHWV RI
OXODUEORFNHGDQGQRQUHVWRUDEOH  EDQGHGJHDQG+\SHU
‡ ,QGHSHQGHQW FKDQQHO GXDO ‡&URVVEDQGUHSHDWHUFDSDELOLW\
<DHVXQRZRIIHUV\HDU UHFHLYHIXOOGXSOH[ ‡ 9HUVDWLOHVFDQQLQJ
IDFWRU\ZDUUDQWLHV ‡ +LJKSRZHURXWSXWZLWK:DWWVRQ
PPPDQGRQFP
‡ &7&66'&6EXLOWLQ
‡ 8VHUSURJUDPPDEOHPLNHNH\V
‡ /DUJHHDV\WRUHDG/&'GLVSOD\ ‡ 5HPRWHKHDGPRXQWLQJZLWKRSWLRQDO
‡ %XLOWLQGXSOH[HU <6.
<DHVX+)6SHFLÀFDWLRQV

‚6HQVLWLYLW\PHDVXUHPHQWVIRU0+]66%&:

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


+):,7+00&0
7KH6PDOOHVW+)PPFP
&RPSDFW+)P7UDQVFHLYHU
1RZZLWK
)7' '63EXLOWLQ
&$//
+52'LVFRXQW3ULFH
)7'
1RZZLWK &$//
'63 +52'LVFRXQW
3ULFH
EXLOWLQ

7KH<DHVX)7SURYLGHVZRUOGFODVVSHUIRUPDQFHLQDQHDV\WRXVH 7KH SRZHU DPSOLÀHU XVHV ELSRODU WUDQVLVWRU GHYLFHV IRU ORZ QRLVH ORZ
FRPSDFWSDFNDJH,WHPSOR\VVWDWHRIWKHDUW,)'63WHFKQRORJ\WREULQJ GLVWRUWLRQ DQG KLJK UHOLDELOLW\ +DV DQ H[WHQVLYH FRROLQJ V\VWHP ZLWK D
DQDUUD\RIDGYDQFHGIHDWXUHVWRWKHRSHUDWRU7UDQVPLWIUHTXHQF\FRY WKHUPRVWDWLFDOO\FRQWUROOHGIDQDQGDOXPLQLXPGLHFDVWFKDVVLV
HUDJHLQFOXGHVWRPHWHUV7KHUHFHLYHUDQJHLVN+]WR0+]
3RZHURXWSXWLV:DWWVRQ+)DQGPHWHUV2SHUDWLQJPRGHVLQ 7KH UHFHLYHU IURQWHQG KDV D YHU\ ORZ QRLVH ÁRRU DQG ZLGH G\QDPLF
UDQJH)HDWXUHVDGRXEOHFRQYHUVLRQVXSHUKHWHURG\QHV\VWHP VLQJOHRQ
FOXGH86%/6%&:$0DQG)0
:)0 ZLWKWKHVHFRQG,)DWN+]EDQGSDVVÀOWHULQJGHYLFHVHOHFWLRQ
DQGJDLQGLVWULEXWLRQIRUVWURQJVLJQDOV2Q9+)DQG8+)WKHYHU\ORZ
‡ 7KHULJLV:;+;' ‡ $)& )DVW6ORZ$XWR2II VH
QRLVH026)(7SUHDPSOLÀHUDQGDFWLYH'%0PL[HUDLGLQZRUNLQJZHDN
DQGZHLJKVSRXQGV3HUIHFW OHFWLRQ
VLJQDOVDQGUHMHFWLQJLQWHUPRGXODWLRQ<6.6HSDUDWLRQ.LWLQFOXGHG
IRUPRELOHRUSRUWDEOHRSHUDWLRQ ‡ &ODULÀHUDGMXVWPHQW
ZLWKWKHUDGLR
‡ ,QFOXGHV 0+$- KDQG PLF ‡ 'HGLFDWHG GDWD MDFN IRU )6.
PLFFOLSDQG'&SRZHUFRUG 577<
‡ ,QFOXGHV  N+] URRÀQJ ÀOWHU ‡ &7&66 ‡ 5HFHLYH FRYHUDJH  N+] WR ‡ &:IHDWXUHVEXLOWLQHOHFWURQLF
ULJKWDIWHUWKHÀUVWPL[HUSURYLG ‡ 8VHUIXQFWLRQVFRQÀJXUDEOHE\ 0+]0+] NH\HU &: PHVVDJH PHPRU\
LQJQDUURZEDQGVHOHFWLYLW\SUR PHQX 0+],QFOXGHVP ZLWKEHDFRQPRGH&:SLWFK
WHFWLRQRIWKH,) '63VWDJHV² ‡ 'LJLWDO YRLFH DQQRXQFHPHQWV ‡ 7UDQVPLWV  P  VLGHWRQHFRQWURODQG&:WUDLQHU
UDUHO\IRXQGLQULJVDWWKLVSULFH RI IUHTXHQF\ PRGH DQG 6 0+]0+]DQG ‡ PDLQPHPRULHVFKDUDFWHU
‡ 0+]EXLOWLQ,)'63 PHWHU N+] $ODVND HPHUJHQF\ IUH DOSKDQXPHULFODEHOVJURXSV
‡ %XLOWLQHOHFWURQLFNH\HU ‡ UHJXODUPHPRULHVDQGWZR TXHQF\RQ86$YHUVLRQ  ZLWKPHPRULHVHDFK
‡ /&'PXOWLIXQFWLRQGLVSOD\ YRLFHPHPRULHV ‡ 66%&:$0)0SDFNHW  ‡ /DUJHPXOWLFRORUGLVSOD\
‡ %XLOWLQ7&;2 “ SSPKRXU DI ‡ &:EHDFRQIXQFWLRQ ESV RSHUDWLRQ ‡ %DWWHU\YROWDJHPHWHU7;PHWHU
WHUZDUPXS  ‡ ,OOXPLQDWHGNH\EXWWRQV ‡ 3RZHURXW: P  VHOHFWLRQWZRDQWHQQDFRQQHF
: P : FP  WRUVYHUVDWLOHVFDQQLQJIHDWXUHV
‡ '63EDQGSDVVÀOWHU'63DXWR DXWRSRZHURIIWLPHRXWWLPHUDQG
:DWW+)9+)8+)7UDQVFHLYHU QRWFKÀOWHU &$7V\VWHP
‡ '63 QRLVH UHGXFWLRQ PLFUR
SKRQHHTXDOL]HU 2SWLRQVLQFOXGH
$OO0RGH ‡ 9+)  8+) IHDWXUHV YHUVDWLOH ‡ $7$6 $FWLYH 7XQLQJ $Q
WRQH FRQWURO VHOHFWLRQV DX WHQQD 6\VWHP IRU PRELOH SRU
3RUWDEOH WRPDWLF UHSHDWHU VKLIW 6PDUW WDEOHRUDSDUWPHQWEDOFRQ\XVH
6HDUFKŒ6SHFWUXP6FRSHDQG 'HVLJQHGIRUXVHRQWKH
$76Π0+]DPDWHXUEDQGV
)7 ‡ ';HUIHDWXUHV,)VKLIW,)QRLVH &DQEHXVHGIXOO\UHWUDFWHGRQ
&$// EODQNHULQWHUFHSWSRLQWRSWLPL]D WKH0+]EDQGV
+52'LVFRXQW3ULFH WLRQ DGMXVWDEOH $*& 5,7 5) ‡ &ROOLQVŠ0HFKDQLFDO)LOWHUV
JDLQFRQWURODQG92;  <)6N+]66%
‡ (DV\ GDWD PRGH IRU RSHUDWLRQ  <)&+]&:
:LWK6%50+P$K1L0+ RQESV)0SDFNHW  <)&1+]&:
577< 6679 RU 36. 5HDU ‡ 7&;2 +LJK 6WDELOLW\ 5HIHU
%DWWHU\DQG3$&KDUJHU SDQHOSLQPLQL',1FRQQHFWRU HQFH2VFLOODWRU
‡ )XOO\ VHOIFRQWDLQHG EDWWHU\ ‡ ,)VKLIW,)QRLVHEODQNHU,32 IRU HDFK FRQQHFWLRQ RI WKHVH
SRZHUHG ORZSRZHU DPDWHXU $77 PRGHV
WUDQVFHLYHU IRU SRUWDEOH FDPS ‡ &: ´VHPLEUHDNLQµ &: UH 3URJUDPPLQJ
LQJRUPRXQWDLQXVH YHUVH&:SLWFKFRQWURO
‡ 2SHUDWHVRQP+)P ‡ %XLOWLQHOHFWURQLFNH\HU .LWV
PDQGFPEDQGV ‡ $56DXWRPDWLFUHSHDWHUVKLIW
‡ 2SHUDWLQJ PRGHV 86% /6% ‡ 'XDO 9)2V VSOLWIUHTXHQF\ <DHVXQRZ 7R3URJUDP+)
<3686%)7
&: $0 )0 :)0 GLJLWDO
$)6.  SDFNHW   
RSHUDWLRQ ,) VKLIW FODULÀHU
´5,7µ ,) QRLVH EODQNHU 5)
RIIHUV\HDU $'06%886%)7
)0  JDLQDQGVTXHOFKFRQWURO,32 IDFWRU\ $'0686%)7'
‡  PHPRU\ FKDQQHOV   ,QWHUFHSW3RLQW2SWLPL]DWLRQ 
PHPRU\JURXSV ‡ %XLOWLQ &7&66 HQFRGHU GH ZDUUDQWLHV $'0686%)7
‡ ,PSURYHG IUHTXHQF\ VWDELOLW\ FRGHUV $'06';86%)7G[
“SSPEXLOWLQ7&;2 $'06';86%)7G[

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


$&&(6625,(6 '8$/%$1'02%,/(6
,QWHUQHW/LQNLQJ.LW +)$PS  PFP0RELOHV
3RZHU6XSSO\
PFP'XDO%DQG
&)0)'0$'LJLWDO
)70'5
&$//²+523ULFH
:,5(6;
,QWHUQHW/LQNLQJ.LW
7KH )70'5
&$// 9+)8+) 'XDO
+52'LVFRXQW3ULFH %DQG7UDQVFHLYHU
:,5(6;VXSSRUWVERWK$QDORJDQGWKH 4XDGUD6\VWHP DQH[FLWLQJQHZZD\WRHQWHULQWR<DHVXҋVUHYROXWLRQDU\ZRUOG
QHZ&)0GLJLWDOUDGLRFRPPXQLFDWLRQV &$//²+523ULFH RI6\VWHP)XVLRQ&)0'LJLWDO&RPPXQLFDWLRQV
PRGHV<DHVXҋV6\VWHP)XVLRQDOUHDG\
+HUH
V DOO WKH OLQHDU DPSOLÀHU \RX ‡ :DWWVRQERWK9+)DQG8+)
WKHIDVWHVWJURZLQJ$PDWHXU5DGLR'LJL
VKRXOGQHHGIRURSHUDWLRQRQERWK+) ‡ +LJKO\ YLVLEOH DQG FRPSDFW  [  SL[HO JUDSKLFDO GRW
WDO6\VWHPLVFHUWDLQWRVHH\HWDQRWKHU
PHWHUV DQGPHWHUV,WLV PDWUL[GLVSOD\FDQEHGHWDFKHGIURPWKHERG\RIWKHUDGLR
SLTXHLQLQWHUHVWWKDQNVWR:,5(6;
GHVLJQHGIRUDXWRPDWLFEDQGVZLWFKLQJ DQGUHPRWHO\PRXQWHG
‡ :,5(6;DOORZVFRPPXQLFDWLRQVEH ZLWK WKH )7 )7 )7
WZHHQERWK&)0GLJLWDOVWDWLRQVDQG ‡ 2SHUDWHVLQWKUHH  'LJLWDOPRGHVDQGRQH$QDORJPRGH
)7' )703 )7 ‡ $XWRPDWLF0RGH6HOHFW $06 IXQFWLRQWKDWLQVWDQWO\GHWHFWV
FRQYHQWLRQDO)0VWDWLRQVYLD:,5(6; )7)7)7)7G[ WKHUHFHLYHGVLJQDOPRGH
‡ +LJK TXDOLW\ YRLFH FRPPXQLFDWLRQ LV )7G[ DQG WKH )7G[ +) ‡ 9'0RGH 9RLFH'DWDVLPXOWDQHRXVFRPPXQLFDWLRQPRGH 
DFKLHYHG E\ UHSHDWLQJ &)0 GLJLWDO UDGLRV7KHDPSIHDWXUHV05) ‡ 9RLFH)5PRGHXVHVWKHIXOON+]EDQGZLGWKWRWUDQVPLW
GDWDDVLWLVYLDWKH,QWHUQHW SRZHU026)(7WUDQVLVWRUVGHVLJQHG GLJLWDOYRLFHGDWD
‡ :,5(6,'$GRSWHGDVLPSOHXVHU,' LQWRXQLWVRIWUDQVLVWRUVLQDSXVK ‡ 'DWD )5 PRGH XVHV WKH IXOO  N+] EDQGZLGWK IRU GDWD
V\VWHPXVLQJDOSKDQXPHULFFKDUDFWHUV SXOOFLUFXLWDW9'& FRPPXQLFDWLRQ
‡ 6PDUW$FFHVV:,5(6;DXWRPDWLFDOO\ ‡ $QDORJ )0LVHIIHFWLYH ZKHQ ZHDN VLJQDO VWUHQJWK FDXVHV
7KHLQFOXGHGH[WHUQDOSRZHUVXSSO\
FRQQHFWVWRQRGHVDQGURRPVE\XWLOL] DXGLRGURSRXWLQWKHGLJLWDOPRGHDQGHQDEOHVFRPPXQLFD
WKH93DOORZVIRUHDV\LQVWDOOD
LQJWKH6PDUW$FFHVVIXQFWLRQ 'LJLWDO WLRQXSWRWKHERUGHUOLQHRIWKHQRLVHOHYHO
WLRQ7KHUHDUHWZRLQSXWYROWDJHV
QRGHVWDWLRQRQO\ 
9$&RU9$&2XWSXWSRZHULVD
‡ 3UHVHW6HDUFK8VHUFDQÀQGORFDOQRGH IXQFWLRQRIWKHSRZHUVXSSO\YROWDJHV
VWDWLRQDQGUHFHLYHWKHLUIUHTXHQF\VHW
WLQJGDWDIRUDXWRPDWLFVHWXS 'LJLWDO
$W9$&WKHUHLV:DWWVRXW PFP
RQ+)DQG:DWWVRQPHWHUV$W
QRGHVWDWLRQRQO\  9$&WKHRXWSXWLV:DWWVRQ
'XDO%DQG
‡ $FWLYLW\0RQLWRU,'VRIDFWLYHQRGHVDQG +)7KHDPSOLÀHUFRPHVZLWKDEXLOWLQ
URRPVFDQEHVHDUFKHGIURPWKH&)0 KLJK VSHHG DQWHQQD WXQHU ZLWK IRXU
WUDQVFHLYHU YLD D ORFDO QRGH 'LJLWDO DQWHQQDRXWSXWVDQGWZRLQSXWV7KH &)0
QRGHVWDWLRQRQO\  PXOWLIXQFWLRQRPQLJORZ/&'GLVSOD\
‡ 1HZV6WDWLRQ6WRUHVDQGUHDGVGLJLWDO VKRZVWKHVWDWXVRIWKHDPSOLÀHU7KHUH )'0$
GDWD VXFK DV WH[W LPDJHV DQG DXGLR LVDXWRPDWLFV\VWHPPRQLWRULQJZLWK 'LJLWDO
GDWD 'LJLWDOQRGHVWDWLRQRQO\  96:5SURWHFWLRQ
‡ 6XSSRUWV$QDORJ)0PRELOHWUDQVFHLYHU )70;'5
IRU$QDORJQRGHVWDWLRQDVZHOODV'LJLWDO 3RZHU6XSSOLHV &$//²+523ULFH
QRGHVWDWLRQZLWK)70'
2SHUDWHRQPDQGFPZLWKWKLVPRELOHWUDQVFHLYHU6HOHFW
SRZHURIRU:DWWVRQHLWKHUEDQG(QMR\ZLGHEDQG
3URJUDPPLQJ.LWV UHFHLYHIURPDQG0+] OHVVFHOOXODU )RXU
VFDQPRGHV9)2PHPRU\SURJUDPPDEOHPHPRU\RUVHOHFWHG
7R3URJUDP0RELOHV PHPRU\(DFKPHPRU\FDQVWRUHIUHTXHQF\PRGHWDJUHSHDWHU
$'06+86%)7 LQIRUPDWLRQWRQH'&6DQWHQQDVTXHOFKLQIRUPDWLRQPHPRU\
VNLS LQIRUPDWLRQ DQG WUDQVPLVVLRQ RXWSXW 6HW WKH VFUHHQ
$'0686%)7)7
EDFNJURXQGWRDQ\RIFRORUV JUHHQEOXHRUDQJHSXUSOHRU
<3686%)70 JUD\ &DSWXUHLPDJHVDQGYLGHRE\FRQQHFWLQJD86%FDPHUD
$'06086%)70'5 QRWVXSSOLHG DQGWUDQVPLWDQGUHFHLYHWKHP7KHUHLVDSRUW
$'06086%)70'5 IRUDPLFUR6'FDUG
)3$
‡ 7UDQVPLWEDQGVP ‡ PHPRULHVLQEDQNV
7R3URJUDP+DQGKHOGV 7KH)3$LVDUHJXODWHGOLQHDU
FP IRXUVFDQPRGHV
$'06-86%)75 VXSSO\DWDPSVDQGLQFOXGHVPH
WHUV ‡ 'RXEOH FRQYHUVLRQ UH ‡ %DQG VFRSH VSHFWUXP
$'06)7'86%)7'5 FHLYHUWZLQ5; VFRSH
$'06)786%)75
)3$ ‡ /DUJHFRORUGLVSOD\ ‡ $576ŒDQGRSWLRQDO%OXH
7KH )3$ KDV  DPSV FRQ ‡ PHPRULHVSHUEDQG WRRWKŠ
$'06)786%)75 WLQXRXVDQGLQWHUPLWWHQW7KLVORZ ‡ ,QWHUQDOFORFNFDOHQGDU ‡ 2SWLRQDO YRLFH JXLGH
$'06)7'86%)7'5 SURÀOHVZLWFKLQJSRZHUVXSSO\RSHU ‡ ,PDJHUHFHLYHWUDQVPLW VSHDNVRSHUDWLQJIUHTXHQ
$'069;86%9;5 DWHVRQRU9$& ‡ (QKDQFHG*36$356Š F\ DQG UHFRUGV UHFHLYHG
$'0686%)7 &$//²+523ULFHV VLJQDOV

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


02%,/(6
)75
PHWHUV
&$//²+523ULFH

0+]:DWW)0PRELOHWUDQVFHLYHU
:DWWVRI5;DXGLRZLWKDQ0+$-$
'70)PLFURSKRQH$VLWVPRGHOQDPHVXJ
$QDORJ)0PHWHU7UDQVFHLYHU
JHVWVWKHQHZ)75DUULYHVZLWKWKHVROLGIHDWXUHFRQÀJXUDWLRQDQGPHFKDQLFDOWRXJK )70'5&$//²+523ULFH
QHVVRIWKHHYHUSRSXODU)75ZLWKHYHQPRUHRXWSXWSRZHUQRZDW:DWWV 7KH)705LVDUXJJHGO\EXLOW\HWFRPSDFW9+)
)0 PRELOH WUDQVFHLYHU SURYLGLQJ KLJK RXWSXW SRZHU
7KH)75IRXURXWSXWSRZHUVHWWLQJV:::DQG:DUHVHOHFWDEOHDO RIXSWR:DWWV2QHRIWKHGLVWLQJXLVKLQJIHDWXUHV
ORZLQJHDFKXVHUWRFKRRVHWKHSRZHUWKH\ZDQWIRUWKHLURSHUDWLQJVW\OHDQGVLWXDWLRQV RIWKLVPRELOHWUDQVFHLYHULVWKH)URQW3DQHO6SHDNHU
$PDVVLYHKHDWVLQNJXDUDQWHHVDVROLG:DWWVRI5)SRZHUZLWKQRFRROLQJIDQQHHGHG GHOLYHULQJ:DWWVRIORXGDQGFU\VWDOFOHDUDXGLR
7KDQNVWRDORXG:DWWVRIDXGLRRXWSXWWKHRSHUDWRUFDQHQMR\&/($5UHFHSWLRQHYHQ
LQQRLV\HQYLURQPHQWV ‡ )UHTXHQF\ 5DQJH ‡ +LJK 6WDELOLW\ 7&;2
7UDQVPLW    “SSP 
2WKHUXVHIXOIXQFWLRQVLQFOXGHGDUH$OSKDQXPHULFFKDQQHOGLVSOD\PHPRU\FKDQQHOV 0+] 5HFHLYH   ‡ 6HYHUH:HDWKHU$OHUW
&7&66DQG'&6HQFRGHGHFRGHEXLOWLQYHUVDWLOHVFDQQLQJFDSDELOLW\ZLGHQDUURZGHYLD 0+] ‡ '70) 0LFURSKRQH
WLRQVHOHFWLRQLQWHUDFWLYHSURJUDPPLQJPHQX ‡ 'RXEOH &RQYHUVLRQ 0+$-$
6XSHUKHWHURG\QH ‡ 6HQVLWLYLW\ X9
‡ )UHTXHQF\ UDQJH 7UDQVPLW    ‡ 9HUVDWLOHVFDQQLQJFDSDELOLW\ ‡  $OSKD1XPHULF +$0 :LGH  X9
0+]5HFHLYH0+] ‡ :;FKDQQHOVZLWK´VHYHUHZHDWKHUµDOHUW 0HPRU\&KDQQHOV +$01DUURZ 
‡ 'RXEOHFRQYHUVLRQVXSHUKHWHURG\QH ‡ 6PDUWVHDUFKRSHUDWLRQ ‡ <HDU:DUUDQW\ ‡ 2XWSXW3RZHU
‡ 0RGXODWLRQ7\SH)( )0 )' 3$&. ‡ :LGHQDUURZGHYLDWLRQVHOHFWLRQ ‡ &7&66DQG'&6(Q :
(7  ‡ ,QWHUDFWLYHSURJUDPPLQJPHQX FRGH'HFRGH
‡ \HDUZDUUDQW\ ‡ 5)VTXHOFK
‡ &7&66DQG'&6HQFRGHGHFRGH ‡ 6XSSO\YROWDJHGLVSOD\
‡ OHYHOGLVSOD\GLPPHU

'XDO%DQG FP

P:
&)0)0'LJLWDO7UDQVFHLYHU
)70'5&$//²+523ULFH
7KLV UXJJHG \HW FRP ‡ 'LJLWDO *0 JURXS
SDFW &)0  )0 9+) PRQLWRU IXQFWLRQ
PRELOHWUDQVFHLYHUSUR ‡ 9RLFHGDWDVLPXOWDQH
)70 )70' YLGHV RXWSXW SRZHU XS RXV FRPPXQLFDWLRQ
&)0)0',*,7$/ &)0)0',*,7$/ WR:DWWV PRGH
‡ 0RGXODWLRQ PRGHV ‡ %ULJKW PXOWLFRORUHG
FP0RELOH 'XDO%DQG0FP &)0 GLJLWDO 9' /(' PRGH  VWDWXV
&$//²+52'LVFRXQW3ULFH 0RELOH PRGH 9)5 PRGH LQGLFDWRU VKRZV WKH
')5PRGH )0DQD WUDQVFHLYHUVҋVWDWXV
7KLV 8+) PRELOH UDGLR KDV D UHFHLYH IUH &$//²+52'LVFRXQW3ULFH
ORJ ‡ ,OOXPLQDWHG PLFUR
TXHQF\UDQJHRI0+]DQGDWUDQV
‡ $06 DXWRPDWLFPRGH SKRQHZLWKGLUHFWIUH
PLWUDQJHRI0+],WKDVVHOHFW ‡:DWWVIRUKLJKSRZHUWUDQVPLWZLWK)$&& VHOHFW  IXQFWLRQ DXWR TXHQF\HQWU\
DEOHRXWSXWSRZHURI::: IXQQHO DLUFRQYHFWLRQ FRQGXFWRU ² ZLQG PDWLFDOO\ UHFRJQL]HV ‡ PHPRU\FKDQQHOV
,W FRPHV ZLWK WKH $-$ '70) PLFUR WXQQHO FRROLQJ WKH VLJQDO DV &)0 ZLWK DOSKDQXPHULF
SKRQH86%FDEOHDQGPRXQWLQJEUDFNHW ‡ :DWWVSRZHUIXODQGFOHDUDXGLRZLWKD GLJLWDORUFRQYHQWLRQDO WDJV PD[LPXPFKDU
‡ $GYDQFHGGLJLWDO&)0RSHUDWLRQ IURQWIDFLQJVSHDNHU )0 DFWHUV 
‡ 6\VWHPIXVLRQFRPSDWLEOH ‡ /DUJH/('ZLWK$06PRGHLQGLFDWRUV ‡ )URQW SDQHO VSHDNHU ‡ &7&66'&6HQFRGH
‡ $06 $XWRPDWLF 0RGH 6HOHFW  IXQFWLRQ ‡ 6\VWHPIXVLRQ,,FRPSDWLEOHZLWKVRSKLVWL ZLWK  : RI DXGLR GHFRGHZLWKVSOLWWRQH
DXWRPDWLFDOO\ UHFRJQL]HV WKH VLJQDO DV FDWHGGLJLWDOJURXS²,' '*,' RSHUDWLRQ RXWSXW DQG'&6HQFRGHRQO\
&)0GLJLWDORUFRQYHQWLRQDO)0
‡ &)0DQGFRQYHQWLRQDO)0RSHUDWLRQ ‡ <HDU:DUUDQW\ FDSDELOLW\
‡ 6RSKLVWLFDWHGGLJLWDOJURXS,'RSHUDWLRQ
‡ PHPRU\FKDQQHOVZLWKDOSKDQXPHULF
WDJV
‡ 7KUHH:DWWIURQWIDFLQJVSHDNHU
<DHVXQRZRIIHUV\HDUIDFWRU\ZDUUDQWLHV

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


+$1'+(/'6
<DHVX+7$FFHVVRULHV
'XDO%DQG FP

)7'5
&$//²+523ULFH

7KH)7'5:RI5)SRZ
HU RXWSXW LQ D OLJKW ZHLJKW
FRPSDFW GHVLJQ %DWWHU\
SRZHUVDYLQJ VHWWLQJV DUH
DYDLODEOH IRU HDFK IUHTXHQ
F\ EDQG ZLWK 7; RXWSXW
SRZHUOHYHOV ::
:: LQGLYLGXDOO\VH
OHFWDEOH (QMR\ ORXG FOHDU
&)0YRLFHTXDOLW\IURPP:RIDXGLRSRZHU5HDO
GXDOEDQGRSHUDWLRQV 99889889 DUHDYDLO
DEOH ZLWK WZR LQGHSHQGHQW UHFHLYHUVDQG WKH )7'5
VXSSRUWVVLPXOWDQHRXV&)0GLJLWDOPRQLWRULQJIRUERWK
WKH$DQG%EDQGV &)0&)0VWDQGE\ 

‡ &)0 GLJLWDO 9' PRGH YRLFH )5 PRGH GDWD )5


PRGHDQGFRQYHQWLRQDO)0PRGH
‡ %XLOWLQ%OXHWRRWKXQLW
‡ +LJKO\ YLVLEOH  [  GRW PDWUL[ IXOOFRORU 7)7
WRXFKSDQHOGLVSOD\
‡ %DQG VFRSH IXQFWLRQ IRU PRQLWRULQJ XS WR  FKDQ
QHOVFHQWHUHGDURXQGWKHFXUUHQW9)2IUHTXHQF\ZLWK
KLJKVSHHG
‡&$0 FOXEFKDQQHODFWLYLW\PRQLWRU IXQFWLRQ
‡ 6\VWHP IXVLRQ ,, FRPSDWLEOH $06 DXWRPDWLF PRGH
VHOHFW  '*,' GLJLWDO JURXS ,'  DQG VPDUW QDYLJD
WLRQIXQFWLRQV
‡ :L5(6;SRUWDEOHGLJLWDOQRGHFRPSDWLEOH
‡ %XLOWLQFKDQQHOKLJKVHQVLWLYLW\*36UHFHLYHU
‡ 6QDSVKRWIHDWXUH
‡ 9RLFH UHFRUGLQJ IXQFWLRQ IRU WKH UHFHLYHG DQG WUDQV
PLWWLQJYRLFHDQGDXGLR
‡ %XLOWLQ2Q2IIWLPHUDXWRPDWLFSRZHURII $32 DQG
WLPHRXWWLPHU 727 
‡ 0LFUR6'FDUGVORW XSWR*% 
‡ ,3;UDWLQJZDWHUSURWHFWLRQ

<DHVX+DQGKHOGV

3RZHURXWSXWFDQEHLQFUHDVHGGHSHQGLQJRQWKHEDWWHU\SDFNVHOHFWHG([WHQGHG5[UDQJH#&HOOSKRQHEORFNHG DQGP:8+)
‚‚:P:8+) :RQ0+]

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


'8$/%$1'+76
)7'5
)7'5 +52 PFP
PFP 'LVFRXQW
3ULFH &)0)'0$'LJLWDO
&)0)'0$ &$//

'LJLWDO 7KHQHZ)7'5LVWKHFRPSDFWDQGYHU\DWWUDFWLYHO\SULFHG
&$// <DHVX6\VWHP)XVLRQWUDQVFHLYHUZLWKERWKFRQYHQWLRQDO)0
+52'LVFRXQW3ULFH )75 RSHUDWLRQDQGWKHDGYDQFHG&)0GLJLWDOPRGH
7KH)7'5EDFNOLWWRXFK
SDQHOGLVSOD\SURYLGHVD
P 7KH )7'5 SURYLGHV XS WR : RI UHOLDEOH 5) SRZHU DQG
KLJK OHYHO RI RQVFUHHQ FP LWV ODUJH IURQW VSHDNHU GHOLYHUV  P: ORXG DXGLR RXWSXW
YLVLELOLW\ IRU WKH RSHUD &)0 KDV EHWWHU %(5 %LW (UURU 5DWH  FKDUDFWHULVWLFV WKDQ
WRU,WKDV<DHVXҋV$06 ([WHQVLYH RWKHU GLJLWDO PRGXODWLRQV DQG WKDQNV WR LW WKH DXGLR TXDOLW\
FDSDELOLW\WRUHFRJQL]HHL 5HFHLYH LVH[FHSWLRQDO
WKHUGLJLWDORU)0DQDORJ
)UHTXHQF\
VLJQDOV7KH)7'5FDQ 7KH QHZ GLJLWDO )7'5 QDWXUDOO\ XWLOL]HV WKH DXWRPDWLF
QRZRSHUDWHDVD:LUHV &RYHUDJH PRGHVHOHFW $06 IXQFWLRQ$06GHWHFWVWKHRSHUDWLQJPRGH
;3RUWDEOH1RGH6WDWLRQ RIWKHUHFHLYHGVLJQDODV&)0GLJLWDORU)0DQDORJDQGDX
ZLWKWKHODWHVWÀUPZDUH WRPDWLFDOO\DQGLQVWDQWO\VZLWFKHVWKHUHFHLYHUWRWKHDSSURSUL
XSGDWH WR WKH )7'5 DWH PRGH 8VHUV GR QRW QHHG WR PDQXDOO\ FKDQJH EHWZHHQ
WKH ODWHVW :LUHV; 3& PRGHV
VRIWZDUH DQG WKH QHZ
6&8FDEOHNLW 0XOWLFRORUHG/('PRGHLQGLFDWRUHTXLSSHG
RQLWVIURQWFDVHDOVRDVVLVWVDQRSHUDWRUWR
HQDEOHKDVVOHIUHHRSHUDWLRQZLWK$067KLV
LQGLFDWRUFOHDUO\DQGYLVLEO\VKRZVWKHWUDQV
PLW  UHFHLYH PRGH E\ FKDQJLQJ LWV FRORU
DQGWKHRSHUDWLQJPRGHRIWKHWUDQVFHLYHULV
HDVLO\UHFRJQL]HGDWDJODQFH

$QRWKHU GLVWLQJXLVKLQJ IHDWXUH RI WKH )7


'5 LV GLJLWDO JURXS PRQLWRU *0  ZLWK
'*,' DQG '3,' '*,' 'LJLWDO *URXS
,GHQWLÀFDWLRQ  DQG '3,' 'LJLWDO 3HUVRQDO
,GHQWLÀFDWLRQ DUHWKHXVHIXOIHDWXUHVQHZO\
LQFOXGHGLQWKH)7'5WRVLPSOLI\WKH*0
RSHUDWLRQ9HU\VLPSO\WKHWUDQVFHLYHUVVH
OHFWLQJWKHVDPH'*,'RU'3,'FDQFRP
PXQLFDWH EXW QRW RWKHUV %HWZHHQ  DQG  '*,' DQG '3,' DUH
(PHUJHQF\ VHOHFWDEOH DQG XVHUV FDQ HQMR\ JURXS FRPPXQLFDWLRQ ZLWK IULHQGV LQ
*0PRGHDFFRUGLQJWRWKHLURSHUDWLRQQHHGV
$XWRPDWLF,'IRU
6HDUFK 5HVFXH 2WKHULQFOXGHGVWDQGDUGIHDWXUHVDQGIXQFWLRQVDUH,3UDWLQJ GXVW
‡ :DWWVRXWDW9'& ZDWHUSURWHFWLRQ FRQVWUXFWLRQZLGHEDQGUHFHLYHFRYHUDJHRI
‡ 6\VWHP)XVLRQ 5HFHLYHV  0+] DQG  0+] YHUVDWLOH VFDQQLQJ FDSDELOLWLHV VXFK DV SURJUDPPDEOH
‡ &)0 GLJLWDO 9' PRGH YRLFH 0+] FHOOXODUEORFNHG  9)2VFDQPHPRU\VFDQDQGSULRULW\FKDQQHOVFDQH[WHUQDO'&MDFN
)5 PRGH GDWD )5 PRGH DQG IRU PRQLWRULQJ DPDWHXU SXEOLF IRU '& VXSSO\ RSHUDWLRQ DQG EDWWHU\ FKDUJH PLQL 86% SRUW IRU FRQ
UHJXODU)0 VDIHW\EXVLQHVVPDULQHDLUFUDIW YHQLHQW PHPRU\ PDQDJHPHQW DQG VRIWZDUH XSGDWHV &7&66 '&6
‡ P:DXGLR JRYHUQPHQWFRPPXQLFDWLRQV RSHUDWLRQDXWRPDWLFSRZHURII $32 IHDWXUH5)VTXHOFKWUDQVPLWWHU
‡ 6QDSVKRW IXQFWLRQ ZLWK LPDJH WLPHWXWWLPHU 727 DQGEXV\FKDQQHOORFNRXW %&/2 
GDWD GLVSOD\ RQ /&' DQG WUDQV ‡ 7RXJKGLHFDVWZDWHUUHVLVWDQW
PLWWLQJLPDJHGDWDFDSDELOLW\ FRQVWUXFWLRQ ‡ 6\VWHP)XVLRQFRPSDWLEOH ‡ 5)6TXHOFK
‡ %XLOWLQKLJKVHQVLWLYLW\FKDQ ‡  PHPRULHV ZDOSKDQX ‡ P:DXGLRRXWSXW ‡ 0LQL 86% SRUW IRU PHPRU\
QHO*36ZLWKDQWHQQD PHULFODEHOV ‡ :LGH EDQG UHFHLYH FRYHUDJH PDQDJHPHQWDQGVRIWZDUHXS
‡ %DFNWUDFN IXQFWLRQ WR UHWXUQ WR ‡ :DWWRXWSXW RI²0+] GDWHV
VWDUWLQJSRLQW ‡ &7&66 DQG '&6 HQFRGH ‡ FKDQQHOPHPRU\ ‡ 7UDQVFHLYHUWRWUDQVFHLYHU
‡ 6PDUWQDYLJDWLRQ GHFRGH  ZLWK VSOLW WRQH '&6 ‡ &7&66'&6RSHUDWLRQ FORQLQJ ZLWK RSWLRQDO FORQLQJ
‡ PHPRU\FKDQQHOV HQFRGHRQO\FDSDEOH ‡ /DUJHPXOWLFRORUPRGHLQGLFD FDEOH &7 
‡ $)GXDOPRQLWRUFDSDELOLW\ ‡$576Œ WRU ‡ $XWRPDWLF SRZHURII IHDWXUH
‡ :LGHEDQG UHFHLYH FDSDELO ‡2QHWRXFKWR12$$ ‡ 9HUVDWLOHVFDQQLQJFDSDELOLWLHV 5) VTXHOFK WUDQVPLWWHU WLPH
LW\    0+] 86$ FHOOXODU ‡ 1LQH '70) DXWRGLDO PHPR SURJUDPPDEOH 9)2 PHPR RXW WLPHU DQG EXV\ FKDQQHO
EORFNHG  ULHV ULHV SULRULW\FKDQQHOVFDQV  ORFNRXW
‡ ESVESV$356EXLOW ‡ :,5(6Œ,QWHUQHWOLQNLQJ ‡  9  P$K /LWKLXP ,RQ ‡ ,3UDWLQJ GXVWZDWHUSURWHF
LQ ‡ +XJH/&'GLVSOD\ EDWWHU\ SDFN 6%5/,  ,Q WLRQ FRQVWUXFWLRQ
‡ +DVPLFUR6'FDUGVORWZLWK*36 ‡ 7ZRIURQWSDQHOSURJUDPPDEOH FOXGHG ‡ (TXLSSHG ZLWK PLQL 86% SRUW
ORJJLQJ NH\V ‡ :; FKDQQHOV ZLWK ´VHYHUH IRU FRQYHQLHQW PHPRU\ PDQ
‡ +LJKFDSDFLW\OLWKLXPLRQEDWWHU\ ‡ $XWRPDWLFUHSHDWHUVKLIW ZHDWKHUµDOHUW 86YHUVLRQ  DJHPHQW VRIWZDUHXSGDWHV

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


+$1'+(/'6
7UL%DQG
)7;5 )75 )75 )75
PFP 'XDO PHWHU PHWHU 9;5
&$// %DQG P
+52'LVFRXQW3ULFH
0+]
FP
)795 &$// &$// &$//
+52'LVFRXQW +52'LVFRXQW +52'LVFRXQW
PHWHU 3ULFH 3ULFH 3ULFH &$//
&$// +52'LVFRXQW3ULFH
+52'LVFRXQW3ULFH

7KH 9;5 LV ERWK


UXJJHGDQGVXEPHUV
LEOH -,6  PLQ
XWHVRIVXEPHUVLRQDW
GHSWKRIIHHW 

7KH )75 LV D FRP


SDFWKLJKSHUIRUPDQFH)0
7KH )7;5 'XDO %DQG 9+)8+)  KDQGKHOGSURYLGLQJXSWR
DQGWKH)795 6LQJOH%DQG9+)  :DWWV RI 5) SRZHU DORQJ
VKDUHWKHVDPHFRUHIHDWXUHVHWDQG ZLWK ELJ DXGLR RXWSXW 
DUHLGHQWLFDOLQDSSHDUDQFH 7KHVH KDQGKHOG WUDQVFHLYHUV VKDUH WKH P:  3URWHFWHG DJDLQVW
VDPHVHWRIIHDWXUHVDQGDUHLGHQWLFDOLQ ZDWHU LQJUHVV WR ,3;
7KH )7;5  )795 DUH WKH XOWL DSSHDUDQFHEXWWKH\KDYHGLIIHUHQWRSHU VSHFLÀFDWLRQV VXEPHUVLRQ
PDWHLQFRPSDFWGHVLJQHG :µ[ DWLQJIUHTXHQF\UDQJHFRYHUDJH IRU XS WR  PLQXWHV DW D
+µ['µ KDQGKHOGWUDQVFHLY ‡ 6HOHFWDEOHRXWSXWSRZHUVHWWLQJV: GHSWK RI  IHHW  )HDWXUHV
‡ &RYHUVN+]WR
HUV SURYLGLQJ XS WR  : RI VWDEOH :DQG: ORQJ RSHUDWLQJ WLPH XVLQJ
0+] ZLWKFHOOEORFNHG 
DQG UHOLDEOH RXWSXW SRZHU WKDQNV WR ‡ 6SHDNHUSURYLGHV:DWWDXGLRLQSXW WKH VXSSOLHG  P$K
‡ :DWWVRISRZHUDQG
<DHVXҋVLQWHJUDWLRQRIKLJKO\HIÀFLHQW ‡ 6XSSOLHGP$K/LLRQEDWWHU\SDFN 1L0+EDWWHU\SDFNNH\
0+]EDQGV:RQ
%ULGJHG 7UDQVOHVV %7/  DPSOLÀHU SURYLGHVPRUHWKDQQLQH  KRXUVRS GLUHFW NH\ERDUG IUHTXHQF\
0+]
WHFKQRORJ\ HUDWLRQ2SWLRQDOKLJKHUFDSDFLW\ HQWU\ DQG GLUHFW '70) LQ
‡ 2QHWRXFK PHPRU\ DF
P$K/LLRQEDWWHU\SDFNSURYLGHVPRUH SXW ZLWK TXLFN RQHWRXFK
FHVV
%RWK UXJJHG KDQGKHOG WUDQVFHLYHUV WKDQKRXUVRIRSHUDWLRQ DFFHVVWR<DHVXҋV:L5(6
‡ )1%/,P$KOLWKL
KDYHLQFKIURQWVSHDNHUVWKDWGH ‡ /('GLVSOD\V ,,Œ 9R,3 ,QWHUQHW OLQNLQJ
XPLRQEDWWHU\SDFNVWDQ
OLYHU:RISRZHUIXOFOHDUDQGFULVS ‡ )RXU   TXLFN UHFDOO NH\V 45.  DUH V\VWHP
GDUG
LQWHOOLJLEOHDXGLR LQGLYLGXDOO\XVHUSURJUDPPDEOHWRVWRUH
‡ (PHUJHQF\DXWRPDWLF,'
DQG UHFDOO IDYRULWH IUHTXHQF\ VHWWLQJV ‡ 7;  0+] 5;
‡ 6HFXULW\SDVVZRUG
‡ 7KUHHVHOHFWDEOH7;SRZHUVHWWLQJV DQGWREHXVHGDVVKRUWFXWNH\VWRVHW 0+]
‡ &:WUDLQHU
: KLJK : PLGGOH : PRGHPHQXLWHPV ‡ :DWWVZLWKSRZHUOHYHOV
‡ (QKDQFHGSDJLQJDQGFRGH
ORZ  ‡ :KLWH/('ÁDVKOLJKW KLPHGORZ
VTXHOFK (3&6 
‡ 0RUHWKDQKRXUVRSHUDWLQJWLPH ‡ 3URJUDPPHG9)2VFDQPHPRU\VFDQ ‡ $576Œ6\VWHP
‡ :DNHXSEDWWHU\VDYHU
ZLWK VXSSOLHG  P$K /LLRQ SULRULW\FKDQQHOVFDQZHDWKHUDOHUWVFDQ ‡ $XWRPDWLFUHSHDWHUVKLIW
‡ PHPRULHVZLWKDOSKD
%DWWHU\SDFN ‡ :;FKDQQHOVZLWK´VHYHUHZHDWKHUµDOHUW ‡ PHPRU\FKDQQHOV
QXPHULFODEHOV
‡ /DUJHFDSDFLW\PHPRU\FKDQ 869HUVLRQ  ‡ 7HQ PHPRU\ EDQNV IRU
‡ &RPSDFW PHDVXUHV MXVW
QHOV ‡ 92;RSHUDWLRQ FKDQQHODOORFDWLRQ
µ[µ[µ:+'
‡ 6HOHFWDEOHIUHTXHQF\VWHSV  ‡ )0EURDGFDVWUHFHLYHU ‡ &7&66'&6LQFOXGHG
‡ 2YHUVL]HG YROXPH DQG
N+]  ‡ $576 DXWRPDWLF UDQJH WUDQVSRQGHU ‡ 6PDUW 6HDUFKŒ PHPR
VTXHOFKNQREV
‡ :;FKDQQHOVZLWK´VHYHUHZHDWK V\VWHP  ULHV
HUµDOHUW ‡ '70)RSHUDWLRQ&7&66'&6RSHUD ‡ 7HQ PHPRU\ EDQNV IRU
‡ 3& SURJUDPPDEOH ZLWK RSWLRQDO WLRQ FKDQQHODOORFDWLRQ
SURJUDPPLQJFDEOH 6&8  ‡ %XV\FKDQQHOORFNRXW ‡ $GMXVWDEOH 7; GHYLDWLRQ &DOOIRU
‡ 7UDQVFHLYHUWRWUDQVFHLYHU FORQLQJ
ZLWKRSWLRQDO FORQLQJ FDEOH 6&8
‡ %DWWHU\VDYHUIXQFWLRQ
‡ $XWRPDWLFSRZHURII
OHYHO
‡ 5)6TXHOFK
4XRWHV
  ‡ 7UDQVPLWWHUWLPHRXWWLPHU ‡ %DWWHU\YROWDJHGLVSOD\

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


6&$11(56
+DQGKHOG6FDQQHUV

%&'+3 6'6
6'6 7UXQN7UDFNHU9 ,  4 6FDQQHU
%DVH0RELOH +DQGKHOG :LWK
 6RIWZDUH
7UXH,4Œ7UXQN7UDFNHU; +523ULFH
²+523ULFH 'HÀQHG
‡7UXH,4ŒUHFHLYHU ‡ $X[LOLDU\ 86% W\SH $ MDFN 5DGLR
‡7UXQN7UDFNHU; IRUIXWXUHH[SDQVLRQ
‡ $3&23KDVH
7HFKQRORJ\
‡ 'LUHFWHWKHUQHWFRQQHFWLYLW\ ‡ µFXVWRPL]DEOHFRORUGLV 
IRUVWUHDPLQJDQGFRQWURO SOD\ ,,,
+523ULFH
‡&RPSOHWH86$&DQDGDUD ‡ *36FRQQHFWLYLW\IRUVLPSOH ‡ +RPH3DWURO RS
GLRGDWDEDVH PRELOHRSHUDWLRQ HUDWLRQ
‡  /RFDWLRQ FRQWURO IRU VLPSOH ‡ 5HFRUGLQJ SOD\EDFN DQG ‡ *%PHPRU\
RSHUDWLRQ UHSOD\ ‡ 86%FRQQHFWLYLW\
‡ ([WHUQDOVSHDNHUMDFN ‡ 3&SURJUDPPLQJ FRQWURO ‡ &ORVH&DOOŠ 5) 8QLGHQ KDV FUH
FDSWXUH DWHGWKHÀUVWVFDQQHUWRLQFRUSRUDWH
‡ $XGLR$*& 6RIWZDUH'HÀQHG5DGLRWHFKQRORJ\
‡ 6$0(ZHDWKHUDOHUW 7KH6'6ҋVGLJLWDOSHUIRUPDQFHLV
‡ %DFNOLWNH\SDG /&' EHWWHUWKDQDQ\RWKHUVFDQQHULQERWK
‡ 0RWRUROD('$&6/75WUXQNLQJ VLPXOFDVW DQG ZHDNVLJQDO HQYLURQ
‡ 86$&DQDGDUDGLRGDWDEDVH PHQWV
‡ (QKDQFHGG\QDPLFPHPRU\
‡ 6\VWHPFKDQQHOQXPEHUWDJJLQJ 7KLV LV WKH ÀUVW VFDQQHU WKDW DOORZV
%&'+3 ‡ '&6&7&66UDSLGGHFRGH \RXWRGHFLGHZKDWWRGLVSOD\ZKHUH
‡ 3&SURJUDPPLQJDQGFORQLQJ DQGLQZKDWFRORU&XVWRPÀHOGVSXW
7UXQN7UDFNHU90RELOH ‡ &RYHUV WKHLQIRUPDWLRQLPSRUWDQWWR\RXULJKW
²+523ULFH 0+= ZKHUH\RXQHHGLW
‡ $3&23KDVH,,, ‡ $XGLR$*& ‡ ,QFOXGHV DQWHQQD 86% DGDSWHU
‡ 0RWRUROD ('$&6 /75 ‡ 6$0(ZHDWKHUDOHUW $$ 1L0+ EDWWHULHV KDQG VWUDS 2IFRXUVHWKH6'6DOVRLQFOXGHV
WUXQNLQJ ‡ %DFNOLWNH\SDG /&' 60$%1&DQWHQQDDGDSWHU DOO WKH DGYDQFHG IHDWXUHV \RXҋYH
‡ +RPH3DWURORSHUDWLRQ ‡ *%PHPRU\ FRPHWRH[SHFWIURPD8QLGHQVFDQ
‡ :L)L/LQNIRUUHPRWHRSHUD ‡ (QKDQFHGG\QDPLFPHPRU\ QHU 7UXQNWUDFNHU ; ZHDWKHU DOHUWV
WLRQ
‡ 86$  &DQDGD UDGLR GDWD
‡
‡
86%FRQQHFWLYLW\
3&SURJUDPPLQJDQGFORQ
0RUHLQIR# $3&233KDVH,DQG,,ORFDWLRQ
EDVHGVFDQQLQJDQG86$&DQDGD
EDVH LQJ ZZZKDPUDGLRFRP UDGLRGDWDEDVH,WPHHWV-,6 ,3; 
‡ =LS&RGHVHOHFWLRQ ‡ &RYHUV   VWDQGDUGVIRUZDWHUUHVLVWDQFH
‡ )LUHWRQHRXWDOHUW   
‡ 7HPSRUDU\DYRLG 0+=
‡ &ORVH&DOOŠ5)FDSWXUH ‡ ,QFOXGHVDQWHQQD'&DGDSW
‡ 6\VWHP FKDQQHO  QXPEHU HU 86% FDEOH WKUHHZLUH
0RELOH6FDQQHU
WDJJLQJ KDUQHVV PRXQWLQJ EUDFNHW
‡ '&6&7&66UDSLGGHFRGH DQGKDUGZDUH +RPH3DWURO,,
0RELOH7UXQNLQJ6FDQQHU ²+523ULFH
ZLWK*366XSSRUWDQG$3&2 ‡ 'LJLWDOWRXFKVFUHHQVFDQQHU ‡ (QWHU\RXU]LSFRGHWRVHOHFWFKDQ
‡ 86$ &DQGDGDWDEDVH QHOVLQ\RXUDUHD
‡ $3&23URMHFW ‡ µGD\OLJKWYLHZDEOHGLVSOD\
 3KDVH, ,, ‡ 6HQWLQHO:LQGRZV3&VRIWZDUHLQ
‡ 86%VRXUFHFKDUJLQJ FOXGHG
‡ 1RVXEVFULSWLRQ ‡ 6$0( HPHUJHQF\  ZHDWKHU
‡ 6LPSOHSURJUDPPLQJ DOHUW
‡ 7UXQN7UDFNHU,9
%&'3²+523ULFH ‡ 0RQLWRU SXEOLF VDIH
W\ORFDOJRYHUQPHQW
‡ G\QDPLFDOO\DOORFDWHG ‡ 'DQJHURXVFURVVLQJRUURDG DPDWHXU UDGLR RS
FKDQQHOV DQG32,DOHUW HUDWRUVDQGPRUH
‡ /RFDWLRQEDVHGVFDQQLQJ ‡ ',1(PRXQWLQJ
‡ 7UXQN7UDFNHU9 ‡ &ORVH&DOOŒ 5) FDSWXUH
‡ $3&23KDVH, ,, WHFKQRORJ\
‡ /LQNVWRRSWLRQDO*36 ‡ 3XEOLFVDIHW\VFDQQHU
‡ 'XDOFRORUGLVSOD\ ‡ 3& FRQWUROSURJUDPPLQJ
‡ 0XOWLVLWHWUXQNLQJVXSSRUW IUHHGRZQORDG 
‡ 7HPSRUDU\ORFNRXW ‡ 86%FRQQHFWRU

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


6&$11(5 6&$11(5$&&(6625,(6
0$67(5 'HVN0RXQWV 6FDQQHU6RIWZDUH

&DUU\LQJ&DVHV
5DGLRVQRWLQFOXGHG
BuTel
6FDQQHU3URJUDPPLQJ
3URWHFWLYH '(6.07 6RIWZDUH
%$6(
/HDWKHURU1\ORQ 6FDQQHU 0DVWHU LV WKH 86 GLVWULEXWRU RI WKH YHU\
'HVNPRXQW
6FDQQHU&DVHV SRSXODU%XWHOOLQHRIVFDQQHUVRIWZDUH
IRUEDVH
VFDQQHUV
:LWK %XWHO VRIWZDUH \RX FDQ UHPRWHO\ SURJUDP
+523ULFH
\RXUVFDQQHUWKURXJKLWVHDV\WRXVH´%DVLFµVRIW
3URWHFW\RXUSRUWDEOHVFDQ 
ZDUH LQWHUIDFH ZKLFK LQFOXGHV D SRZHUIXO 5DGLR
QHU LQYHVWPHQW ZLWK WKHVH 5HIHUHQFHFRPGLUHFWGRZQORDGIHDWXUH 55XVHU
UXJJHG DWWUDFWLYH IRUP DFFRXQWUHTXLUHG 
ÀWWLQJFDVHVGHVLJQHGVSH
FLÀFDOO\ IRU HDFK VFDQQHU 7KH %XWHO ´3URµ VRIWZDUH DOVR LQFOXGHV IXOO YLUWXDO
PRGHO  6FDQQHU 0DVWHU FRQWURODXGLRUHFRUGLQJDQGGDWDORJJLQJ
RIIHUV WKUHH W\SHV +DUG '(6.07
OHDWKHU IRU WKH PRVW SUR %$6( $5&;76RIWZDUH
WHFWLRQ  VRIW OHDWKHU DQG 'HVNPRXQW IRU WKH %HDUFDW %&'3 ;7 3
Q\ORQZLWKGLIIHUHQWEHOWDW IRUWKUHH ;7;
WDFKPHQWVDVQRWHGEHORZ EDVHVFDQ $5&;7%DVLF+523ULFH
QHUV $5&;73UR+523ULFH
 +523ULFH
%HDUFDW6'6&DVHV  $5&6RIWZDUH
 DOOZLWKVZLYHOEHOWFOLSVIRUSURIHVVLRQDOVZLYHO
IRU WKH %HDUFDW 6'6 6'6 %&'+3
DQGTXLFNUHOHDVH 
%&'+3
+DUG/HDWKHU&DVH+523ULFH
$5&%DVLF+523ULFH
6RIW/HDWKHU&DVH+523ULFH
$5&3UR+523ULFH
1\ORQ&DVH+523ULFH
 '(6.07
%$6( $5&6RIWZDUH
%HDUFDW%&'+3&DVHV IRUWKH:KLVWOHU:6 *5(365
'HVNPRXQW
 DOOZLWKVZLYHOEHOWFOLSVIRUSURIHVVLRQDOVZLYHO
IRUWZREDVH 563UR
DQGTXLFNUHOHDVH 
VFDQQHUV $5&%DVLF+523ULFH
+DUG/HDWKHU&DVH+523ULFH
+523ULFH $5&3UR+523ULFH
6RIW/HDWKHU&DVH+523ULFH
1\ORQ&DVH+523ULFH

%HDUFDW%&'3%&$7
6'56ZLWFK
%&;/7&DVHV '(6.
+DUG/HDWKHU&DVH )L[HG%HOW&OLS  07
 +523ULFH 3257
6RIW/HDWKHU&DVH 6ZLYHO%HOW/RRS  'HVN
 +523ULFH PRXQW
1\ORQ&DVH )L[HG%HOW/RRS  IRUWKUHHSRUWDEOH
 +523ULFH VFDQQHUV+523ULFH

:KLVWOHU:6
5DGLR6KDFN3UR &DVHV '(6.07
+DUG/HDWKHU&DVH 6ZLYHO%HOW/RRS  3257
 +523ULFH 'HVNPRXQWIRU 6'57UDQVPLW
6RIW/HDWKHU&DVH 6ZLYHO%HOW/RRS  WZRSRUWDEOH 5HFHLYH6ZLWFK
 +523ULFH VFDQQHUV
1\ORQ&DVH )L[HG%HOW&OLS  +523ULFH 0)-%6'5
 +523ULFH  $QLQH[SHQVLYHZLGHEDQG6'5UHFHLYHUSUHVHQWV
HYHU\WKLQJ RQ D EDQG OLNH D SDQDGDSWHU ,I \RX
ZDQWWRNQRZZKHUHWKHDFWLYLW\LVZKRҋVJHQHUDW
LQJ VSODWWHU ZKDWҋV LQ WKH '; ZLQGRZ KRZ ZLGH
)LQG6:/DQG \RXUDXGLRLVRUZKDWIUHTXHQFLHVDUHFOHDULWҋVDOO
'(6.073257 ULJKW WKHUH 'XULQJ UHFHLYH WKH 0)-%6'5
6FDQQHU$QWHQQDV 'HVNPRXQWIRURQH VZLWFKHV\RXU6'5WR\RXUDQWHQQDOHWWLQJ\RXVHH
RQ3DJH SRUWDEOHVFDQQHU WKHHQWLUHEDQGRQ\RXUGLVSOD\2QWUDQVPLW\RXU
6'5LVVZLWFKHGRXWDQGJURXQGHGWRSURWHFW\RXU
+523ULFH
%RRNVRQ3DJH 6'5377DQGDIDLOVDIH5)VHQVHFLUFXLWVZLWFKHV
0)-%6'5)RU+)9+)8+)+523ULFH


0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


62)7:$5('(),1('5(&(,9(56

ELW6'5
6'5GXR'XDO7XQHU
563G[ +52'LVFRXQW3ULFH
5DGLR6SHFWUXP3URFHVVRU
7KH6'5SOD\563GXRLVDGXDOWXQHUZLGHEDQG
+52'LVFRXQW3ULFH IXOOIHDWXUHG ELW 6'5 ZKLFK FRYHUV WKH HQ
WLUH 5) VSHFWUXP IURP  N+] WR  *+] JLYLQJ
7KH563G[LVDPDMRUXSJUDGHWRWKHSRSX
 0+] RI VSHFWUXP YLVLELOLW\ &RPELQHG ZLWK
ODU 563 DQG 563SUR PXOWLDQWHQQD UH
6'55HFHLYHU563$ FHLYHU GHVLJQ ,WҋV D ZLGHEDQG IXOOIHDWXUHG
6'5XQRVRIWZDUHIRU:LQGRZV\RXFDQVLPXO
5DGLR6SHFWUXP3URFHVVRU WDQHRXVO\ PRQLWRU WZR FRPSOHWHO\ VHSDUDWH 
ELW 6'5 ZKLFK FRYHUV WKH HQWLUH 5)
0+] EDQGV RI VSHFWUXP DQ\ZKHUH EHWZHHQ 
VSHFWUXP IURP  N+] WR  *+] &RPELQHG
+52'LVFRXQW3ULFH N+] DQG  *+] 7KH 563GXR SURYLGHV WKUHH
ZLWK WKH SRZHU RI UHDGLO\ DYDLODEOH 6'5 UH
7KH 563$ LV D SRZHUIXO ZLGHEDQG IXOOIHD VRIWZDUH VHOHFWDEOH DQWHQQD LQSXWV DQG FORFN
FHLYHUVRIWZDUH LQFOXGLQJ6'5XQRVXSSOLHG
WXUHGELW6'5ZKLFKFRYHUVWKHHQWLUH5) LQJIHDWXUHVLGHDOO\VXLWHGWRLQGXVWULDOVFLHQWLÀF
E\6'5SOD\ \RXFDQPRQLWRUXSWR0+]
VSHFWUXPIURPN+]WR*+]$OOLWQHHGVLVD DQGHGXFDWLRQDODSSOLFDWLRQV$OOLWQHHGVLVD3&
VSHFWUXP DW D WLPH 7KH 563G[ SURYLGHV
3&DQGDQDQWHQQDWRSURYLGHH[FHOOHQWFRP DQGDQDQWHQQDWRSURYLGHH[FHOOHQWFRPPXQL
WKUHH VRIWZDUHVHOHFWDEOH DQWHQQD LQSXWV
PXQLFDWLRQVUHFHLYHUIXQFWLRQDOLW\&RPELQHG FDWLRQVUHFHLYHUIXQFWLRQDOLW\$GRFXPHQWHG$3,
DQGDQH[WHUQDOFORFNLQSXW
ZLWKWKHSRZHURIUHDGLO\DYDLODEOH6'5VRIW DOORZVGHYHORSHUVWRFUHDWHQHZGHPRGXODWRUV
ZDUH VXFK DV 6'5XQR \RX FDQ PRQLWRU XS 1RZLQFOXGLQJ6'5XQR6'5VRIWZDUH RUDSSOLFDWLRQVDURXQGWKHSODWIRUP
WR 0+] RI VSHFWUXP DW D WLPH 2WKHU 6'5 ,QWHJUDWHG VFDQQHU DQG GLYHUVLW\ VRIWZDUH
VRIWZDUH LV DYDLODEOH IRU PRVW 26 SODWIRUPV 7KH EHQHÀWV RI XVLQJ 6'5XQR VRIWZDUH LQ ‡ 'XDOWXQHUVSURYLGHLQGHSHQGHQWFRYHUDJHN+]
LQFOXGLQJ /LQX[ 0DF 5DVSEHUU\ 3L  7KLUG FOXGH WR+]XVLQJDQWHQQDSRUWVVLPXOWDQHRXVO\
SDUW\VRIWZDUHLVDOVRDYDLODEOHWRDOORZUHFHS ‡ +LJKO\ LQWHJUDWHG QDWLYH VXSSRUW IRU WKH ‡ ELW$'& VLOLFRQ WHFKQRORJ\ QRW DQRWKHU 
WLRQRIYDULRXVGLJLWDOPRGHVRUWRLPSOHPHQW 563IDPLO\ ELWGRQJOH 
SDQDGDSWHUIXQFWLRQDOLW\IRUDQ\&$7FRQWURO ‡ 'LYHUVLW\WXQLQJZLWKWKH563GXR ‡ 8SWR0+]YLVLEOHEDQGZLGWK VLQJOHWXQHU
ODEOHULJ ‡ )XOO\LQWHJUDWHGIUHTXHQF\VFDQQHUIRUDOO PRGH RUVOLFHVRI0+]VSHFWUXP GXDOWXQHU
563V PRGH 
‡ &RQWLQXRXVFRYHUDJHIURPN+]WR*+] ‡ &DOLEUDWHG 6 PHWHU LQFOXGLQJ VXSSRUW IRU ‡  VRIWZDUHVHOHFWDEOH DQWHQQD SRUWV  [ 
‡ 8SWR0+]YLVLEOHEDQGZLGWK ,$586PHWHUVWDQGDUG 2KPVDQG[N2KPVKLJKLPSHGDQFHEDO
‡ 3RZHUV RYHU WKH 86% FDEOH ZLWK D VLPSOH ‡ &DOLEUDWHG 5) SRZHU PHWHU ZLWK PRUH DQFHGXQEDODQFHGLQSXW 
W\SH%VRFNHW WKDQG%RIXVDEOHUDQJH ‡ +LJKLPSHGDQFHDQWHQQDSRUW N+]WR0+] 
‡ ELW$'&VLOLFRQWHFKQRORJ\ QRWDQRWKHU ‡ %HVWLQFODVVDXGLRTXDOLW\ ZLWKVHOHFWDEOH0:QRWFKÀOWHUDQGFKRLFHRI
ELWGRQJOH ‡ $GGLWLRQDO GHVLJQ RSWLPL]DWLRQ IRU GH SUHVHOHFWLRQÀOWHUV
‡  KLJKVHOHFWLYLW\ EXLOW LQ IURQWHQG SUHVH PDQGLQJ UHFHSWLRQ FRQGLWLRQV EHORZ  ‡ 6RIWZDUHVHOHFWDEOH$0)0DQG'$%EURDGFDVW
OHFWLRQÀOWHUV ‰‰0+] EDQGQRWFKÀOWHUVIRUWKHWZR60$DQWHQQD 
‡ 6RIWZDUH VHOHFWDEOH $0)0 DQG '$% ‡ 6RIWZDUH VHOHFWDEOH FKRLFH RI  DQWHQQD N+]WR*+] SRUWV
EURDGFDVWEDQGQRWFKÀOWHUV SRUWV [60$DQG[%1&  ‡ ([WHUQDOFORFNLQSXWDQGRXWSXWHQDEOHVHDV\
‡ 6RIWZDUH VHOHFWDEOH PXOWLOHYHO ORZ QRLVH ‡  (QKDQFHG DELOLW\ WR FRSH ZLWK H[WUHPHO\ V\QFKURQLVDWLRQ WR PXOWLSOH 563V RU H[WHUQDO
SUHDPSOLÀHU VWURQJVLJQDOV UHIHUHQFHFORFN
‡ %LDV7SRZHUVXSSO\IRUSRZHULQJDQWHQQD ‡ ([WHUQDO FORFN LQSXW IRU V\QFKURQL]DWLRQ ‡ 3RZHUVRYHUWKH86%FDEOHZLWKDW\SH%VRFNHW
PRXQWHG/1$ SXUSRVHVRUFRQQHFWLRQWR*36UHIHUHQFH ‡ KLJKVHOHFWLYLW\EXLOWLQIURQWHQGSUHVHOHFWLRQ
‡ 5)VKLHOGLQJOD\HULQVLGHFDVH FORFNIRUH[WUDIUHTXHQF\DFFXUDF\ ÀOWHUVRQERWKWKH60$DQWHQQDSRUWV
‡ 6'5XQR³ZRUOG FODVV :LQGRZV 6'5 VRIW ‡  ([FHOOHQW G\QDPLF UDQJH IRU FKDOOHQJLQJ ‡ 6RIWZDUHVHOHFWDEOHPXOWLOHYHOORZQRLVHSUH
ZDUH UHFHSWLRQFRQGLWLRQV DPSOLÀHU
‡ 'RFXPHQWHG $3, IRU QHZ DSSV GHYHORS ‡ &DOLEUDWHG6PHWHU5)SRZHUDQG615 ‡ %LDV 7 SRZHU VXSSO\ IRU SRZHULQJ DQWHQQD
PHQW PHDVXUHPHQWZLWK6'5XQR PRXQWHG/1$
‡ 6LQJOH60$DQWHQQDVRFNHWFRYHULQJHQWLUH ‡ (QFORVHGLQDUXJJHGEODFNSDLQWHGVWHHO ‡ (QFORVHGLQDUXJJHGEODFNSDLQWHGVWHHOFDVH
IUHTXHQF\UDQJH FDVH ‡ 6'5XQR³ZRUOGFODVV6'5:LQGRZVVRIWZDUH
2SHQ$3,IRUQHZDSSVGHYHORSPHQW
6FDQQLQJ6RIWZDUH
6XSSRUW&DWDORJ
6'5XQR9HUVLRQ
7KH ODWHVW YHUVLRQ Y  RI WKH 6'5XQR VRIWZDUH LQWURGXFHV D IDVW IUHTXHQF\ VFDQQHU IRU $ FRPSOHWH FDWDORJ RI DYDLODEOH KRZWR YLGHRV
6'5SOD\SURGXFWV7KLVXSGDWHPDNHV6'5XQRWKHÀUVWIXOO\IHDWXUHG6'5SDFNDJHZLWKLQWH DQGDSSQRWHVLVQRZDYDLODEOH7RSLFVFRYHUHG
JUDWHGIUHTXHQF\VFDQQLQJ7KHVFDQQHUKDVPRGHVLWFDQVFDQDQDUELWUDU\IUHTXHQF\UDQJH LQFOXGH EDVLF ´JHWWLQJ VWDUWHGµ YLGHRV KRZ WR
ZLWKDXVHUGHÀQHGVWHSVL]HRULWFDQVFDQWKURXJKDOLVWRIIUHTXHQFLHVIURPWKHXVHUҋVPHPRU\ XVH UG SDUW\ DGGRQ VRIWZDUH LPSOHPHQW D
SDQHO,WFDQDXWRPDWLFDOO\VWRUHIRXQGVLJQDOVWRWKHPHPRU\SDQHOKDVDQXPEHURIEXLOWLQSUH SDQDGDSWHURSWLPL]HWKHSHUIRUPDQFHRI\RXU
VHWV LQFOXGLQJWKHPDULQHDQGDLUEDQGV DQGKDVWKHDELOLW\WRERWKZDLWRQVLJQDODQGKROGIRUD 563 DQG VHOHFWHG WKLUGSDUW\ DQG IRUHLJQ ODQ
SHULRGRIWLPHRQDVLJQDO7KHODWHVWYHUVLRQRI6'5XQRFDQEHIRXQGRQ6'5SOD\ҋVGRZQORDGV JXDJHPDWHULDO$OOWKLVFDQEHIRXQGDW
SDJHKWWSVZZZVGUSOD\FRPGRZQORDGV KWWSVZZZVGUSOD\FRPDSSVFDWDORJXH

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


6:/
)5;%7
²+523ULFH

$OO3XUSRVH4XDG
3RZHU5DGLR

1HHG D UDGLR WKDWҋV UXJJHG


UHFKDUJHDEOH DQG UHOLDEOH
QRWWRPHQWLRQVRODUSRZHUHG
([HFXWLYH6DWHOOLWH+523ULFH VSODVKSURRI DQG VPDUWSKRQH
DQG WDEOHW FKDUJLQJ" 7KH
)LYH'HFDGHVRI([FHOOHQFH )5;%7LVMXVWWKHWLFNHW:LWK
IRUIRXUPLQXWHVDQG\RXҋOOSUR
7KH6DWHOOLWVHULHVNHHSVJHWWLQJEHWWHUDQGEHWWHU7KHODWHVWDUULYDOWKH(WyQ DUHFKDUJHDEOHOLWKLXPEDWWHU\
GXFH HQRXJK SRZHU IRU 
6DWHOOLWLVQRH[FHSWLRQ7KLVODWHVWLQQRYDWLRQGHOLYHUVWKHEHVWSHUIRUPDQFH VXSHUGXSHU VRODU SDQHO DQG
PLQXWHV RI PXVLF DQG ZHDWKHU
LQUDGLRUHFHSWLRQDQGDXGLRTXDOLW\DQGLWҋVJRWWKHORRNVDQGVW\OHWRPDWFK KDQG FUDQN SRZHU JHQHUDWRU
RURQHPLQXWHRIWDONWLPH8VH
7KH([HFXWLYH6DWHOOLWUHFHLYHVHYHU\UDGLRZDYHOHQJWK³$0 0: )0ZLWK LWҋVDQHVVHQWLDOWRROIRUXVHDW
WKHPLFUR86%FDEOHWRFKDUJH
5'6 /: DQG 6KRUWZDYH 6:  3OXV LW DOVR UHFHLYHV 9+) DLUFUDIW EDQG KRPHRUDZD\
WKH EXLOWLQ UHFKDUJHDEOH EDW
VLQJOHVLGHEDQG 66% DQGLQFOXGHVD3//WXQHUVR\RXU$0VLJQDOLVVWURQJ 6WD\ XS WR GDWH ZLWK WKLV $0 WHU\ 7R FKDUJH \RXU VPDUW
DQGFOHDU,WKDVDOHDWKHUFDVHZLWKFUDIWVPDQVWLWFKLQJIRUXOWLPDWHSRUWDELOLW\  )0 GLJLWDO UDGLR ZLWK GLVSOD\ SKRQHRUWDEOHWSOXJLWLQWRWKH
DQG DODUP FORFN 7KHUHҋV DQ 9 $ 86% SRUW 3RZHU ZLOO
‡ 7KHV\QFGHWHFWRULPSURYHVVRXQG ‡ +HDGSKRQH MDFN &RQQHFW DQ\ $8;LQSXW WR SOD\ \RXU RZQ DXWRPDWLFDOO\´GXPSFKDUJHµWR
TXDOLW\E\ORZHULQJGLVWRUWLRQDQG DXGLRGHYLFHXVLQJWKHOLQHLQSXW WXQHV $QG WR OLVWHQ DORQH \RXU GHYLFH MXVW OLNH SOXJJLQJ
IDGLQJ,WҋV VHQVLWLYH WR SLFN XS ‡ /LQH RXW VRFNHW WUDQVIHU UDGLR MXVWSOXJLQ\RXUIDYRULWHKHDG LQWRWKHZDOO7KH)5;%7ZLOO
ZHDNHUVLJQDOV EURDGFDVWLQJWRRWKHUGHYLFHV  SKRQHV IXOO\FKDUJHPRVWVPDUWSKRQHV
‡5'6 IRU )0 VKRZV \RX WKH VWD ‡ ,W IHDWXUHV ORFDO DQG ZRUOG WLPH RQFH
WLRQҋVFDOOOHWWHUVVW\OHRIPXVLF VHWWLQJV UDGLR DQG EX]]HU DODUP 7KH )5;%7 SRZHUV XS LQ
VRQJWLWOHDUWLVWDQGPRUH FORFNVHWWLQJVVOHHSWLPHUDQGWLPH IRXU ZD\V³YLD VRODU SDQHO 6KLQH WKH EULJKW /(' ÁDVKOLJKW
‡8VHV'63WHFKQRORJ\WRHQKDQFH EDFNXS 7KH EULJKW RUDQJH /&' KDQG FUDQN EXLOWLQ UHFKDUJH WRÀQG\RXUZD\8VHWKHJORZ
VHQVLWLYLW\DQGVHOHFWLYLW\ GLVSOD\ZLWKEDFNOLJKWLQJPDNHVLW DEOHOLWKLXPEDWWHU\RUDONDOLQH LQWKHGDUN ORFDWRU DQG LOOXPL
‡ GHJUHHURWDWLQJ$0DQWHQQD HDV\WRNHHSWLPH«LQDQ\]RQH EDWWHULHV 7KH VRODU SDQHO ZLOO QDWHG EXWWRQV DW QLJKW$QG IRU
‡ $XWRPDQXDOGLUHFWIUHTXHQF\ ‡ 'XDODODUPFORFN FKDUJH WKH EDWWHU\ IXOO\ LQ  ELJWLPHHPHUJHQFLHVÁDVKWKH
NH\LQDQGVWDWLRQPHPRU\WXQLQJ ‡ 86% 9 RXWOHWIRU03RUPRELOH KRXUV&UDQNWKHKDQGWXUELQH UHGHPHUJHQF\EHDFRQ
‡ 0XWHIXQFWLRQ SKRQHFKDUJLQJIXQFWLRQ
‡ .$0RXWSXWVRFNHW ‡ $&'&9SRZHUVXSSO\LQFOXGHG
‡ $XWRWXQLQJVWRUDJHIXQFWLRQ $76  ‡ 3OXJLQWKH$&DGDSWHU LQFOXGHG 
IRU)0$0VKRUWZDYH IRUIXOOSRZHURUXVH$$EDWWHU
‡ VWDWLRQPHPRULHV HDFKEDQG LHV VROGVHSDUDWHO\ 7KHEDWWHU\
PHPRULHVFXVWRPL]DEOH  VWUHQJWK LQGLFDWRU RQ WKH GLVSOD\
‡ ([WHUQDO DQWHQQD MDFNV IRU ERWK ZLOOOHW\RXNQRZZKHQLWҋVWLPHIRU
$0DQG)0 DFKDQJH

7XQDEOH3DVVLYH$05DGLR
/RRS$QWHQQD
.+].+] )LHOG%7+523ULFH
$1 $0)06KRUWZDYH5DGLR
²+523ULFH )LHOG%7UHFHLYHVDOPRVWHYHU\UDGLRZDYHOHQJWK³$0 0: )0
DQG6KRUWZDYH 6: ³DWKRPHRUDEURDG$QGLWҋVHDV\WRVHWWKH
8VH ZLWK H[WHUQDO DQWHQQD FDSDEOH UDGLRV VWDWLRQ VSDFLQJ DQG IUHTXHQF\ VR \RXU VWDWLRQV FRPH LQ ORXG DQG
3OXJ WKH $1 LQWR WKH DQWHQQD LQSXW RI FOHDUZKHUHYHU\RXDUH
\RXUUDGLRRUSODFHORRSDVFORVHWRWKHVRXQG
V\VWHPDVSRVVLEOHIRUEHWWHUUHFHSWLRQ)LUVW ‡ +LJK VHQVLWLYLW\ VWURQJ DQWL DQDORJDXGLRVLJQDOEXWDOVR
WXQHWKHUDGLRIUHTXHQF\WKHQÀQHWXQHE\DG LQWHUIHUHQFHORZEDFNJURXQG GLJLWDO GDWD OLNH WKH VWDWLRQҋV
MXVWLQJWKHFRQWURONQRERQWKH$10RYH QRLVHDQGHYHQORZHUGLVWRU FDOOOHWWHUVVW\OHRIPXVLFVRQJ
WKHORRSDURXQGWRÀQGWKHEHVWUHFHSWLRQµ WLRQ WLWOHDUWLVWDQGPRUH
[µ[µ :[+[' ‡ :LGHQDUURZ EDQGZLGWK VH ‡ /RFDODQGZRUOGWLPHVHWWLQJV
OHFWLRQLPSURYHVDXGLRÀGHOLW\ UDGLRDQGEX]]HUDODUPFORFN
DQG PLQLPL]HV QRLVH /LVWHQ VHWWLQJV VOHHS WLPHU DQG
RXWORXGRUSOXJLQ\RXUIDYRULWH VQRR]HOLJKW
)UHH*URXQG6KLSSLQJ KHDGSKRQHV ‡ 8VH'EDWWHULHV QRWLQFOXGHG 
RQ0RVW2UGHUV2YHU ‡ 7KH 5DGLR 'DWD 6\VWHP
5'6 HQDEOHV)0EURDGFDVW
RU SOXJ LQ WKH VXSSOLHG $&
DGDSWHULQWRWKH'&MDFN
HUVWRGHOLYHUPRUHWKDQMXVWDQ

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


3$&.(7'$7$$356

37&,,,XVE
3$&725 +523ULFH
'5
$VVXFFHVVRUWRWKHEHORYHG37&,,XVELWLVPDLQO\
+523ULFH
3$&725 GHVLJQHGIRU3$&725,,,WKXVDOORZLQJZRUOGZLGH
7KH '5 3GUDJRQ LV WKH QR FRP (PDLOWUDIÀFYLDVKRUWZDYH,WLVDOVRVXLWDEOHIRU
'5 SURPLVH IXUWKHU GHYHORSPHQW RI WKH OHJ DOORWKHUDYDLODEOHPRGHVHJZLWK3DFNHW5DGLR
+523ULFH HQGDU\ 37&,, ZKLFK ZDV GHVLJQHG IRU 577<ZHDWKHU)$;UHFHSWLRQRUGHFRGLQJ&:
SURIHVVLRQDO XVH DQG IRU WKH DPELWLRXV
7KH'5RIIHUVDORZHUSULFHGHQWU\WRWKH
DPDWHXU UDGLR HQWKXVLDVW 7KH '5 7KH37&,,,XVELVVRIWZDUHFRPSDWLEOHWRWKH37&
3GUDJRQ PRGHP FODVV 7KH '5 KDV
KDVEHHQRSWLPL]HGIRUXVHZLWKWKHQHZ ,,XVE VR WKDW H[LVWLQJ VRIWZDUH $LU0DLO 506 ([
EHHQRSWLPL]HGIRUXVHZLWKWKHQHZKLJKHQG
KLJKHQG GDWD WUDQVPLVVLRQ PRGH 3$& SUHVV$OSKDHWF FDQFRQWLQXHWREHXVHG
GDWDWUDQVPLVVLRQPRGH3$&725
725
7KH '5 LV VRIWZDUH FRPSDWLEOH WR WKH 7KH37&,,,XVELVQRWRQO\DQH[FHOOHQW+)PRGHP
7KH '5 LV VRIWZDUH FRPSDWLEOH WR EXW DOVR D SRZHUIXO PXOWLPRGH FRQWUROOHU ,W VXS
37&,,VHULHVDQGWRWKH'5VRWKDWH[
WKH 37&,, VHULHV VR WKDW H[LVWLQJ 3$& SRUWV WKH IROORZLQJ PRGHV 3$&725,,,,,, 35
LVWLQJ 3$&725 VRIWZDUH $LU0DLO 506 ([
725VRIWZDUH $LU0DLO506([SUHVV$O DOVR535 577<&:36.)$;6679$0
SUHVV$OSKDHWF FDQFRQWLQXHWREHXVHG
SKDHWF FDQFRQWLQXHWREHXVHG 7251$97(;$356Š%HDFRQ
'XHWRWKHSOXJFRPSDWLELOLW\RIWKHUDGLRSRUWV
‡ 2SHUDWLQJ 0RGHV 3$&725 3$& 5HPRWHFRQWURO\RXUWUDQVFHLYHUGLUHFWO\IURPWKH
D FKDQJH IURP WKH WULHG DQG WHVWHG 37&,,
725 3$&725 3$&725 37&,,,XVE IRU UHDOO\ FRPIRUWDEOH RSHUDWLRQ 7KH
WHFKQRORJ\ WR WKH LQQRYDWLYH 3GUDJRQ WHFK
ZHDWKHU)$; 5HFHLYH *36GHFRGHU 37&,,,XVE75;LQWHUIDFHLVFRPSDWLEOHZLWKHTXLS
QRORJ\ LV YHU\ HDV\ &KDQJH RYHU WKH SOXJV
‡ 'LVSOD\  [  SL[HO 2/(' EOXH PHQWIURP,FRP<DHVX6*&DQG.HQZRRG
WXUQRQDQGHQMR\3$&725
KLJK FRQWUDVW H[FHOOHQW UHDGDELOLW\
‡+DVPDQ\RIWKHVDPHIHDWXUHVDVWKH'5 QR YLHZLQJ DQJOH SUREOHPV GLVSOD\ RI 3$&725,,,DVVWDQGDUG
 VSHFWUXPDQGPXFKPRUH ‡ :LGHVSUHDGSURYHQWHFKQLTXH :LQOLQN6DLO0DLO
‡  %DFNZDUGV FRPSDWLEOH WR 3$&725 HWF 
$XWRPDWLFQHJRWLDWLRQGXULQJOLQNVHWXS 3$&725 ‡ $XWRPDWLFIUHTXHQF\FRUUHFWLRQ
‡ 1RWLFHDEO\ LPSURYHG UHFHSWLRQ ZLWK 3$& ‡ 0D[QHWVSHHGESV ‡ 0D[ESVQHW
725DQG3$&725 ‡ [IDVWHUWKDQ3 ‡ +LJKDGDSWLYLW\
‡ 2SHUDWLQJ0RGHV3$&7253$&725 ‡ %DFNZDUGVFRPSDWLEOH ‡ +LJKLQWHUIHUHQFHLPPXQLW\
3$&725 3$&725 ZHDWKHU)$; UH ‡ +]EDQGZLGWK ‡ 0D[EDQGZLGWK
FHLYH *36577<1$97(;GHFRGHU ‡ +LJKO\DGDSWLYH
‡ +LJKO\UHVLVWDQWWRLQWHUIHUHQFH
‡ DXWRQRWFKHV 'LJLWDO,QWHUIDFH
‡ $GDSWLYHHTXDOL]HU
)DUDOORQ&DEOHV$FFHVVRULHV

0)-

86%WR5DGLR
0XOWLPRGH,QWHUIDFH
0)-ҋVXQLYHUVDO86%UDGLRLQWHUIDFHLVH[FHSWLRQ
DOO\ HDV\ WR VHWXS DQG XVH +RZHYHU VLPSOLFLW\
GRHVQҋWPHDQFRPSURPLVHGSHUIRUPDQFH
‡ )XOO86%FRQQHFWLYLW\
‡ 3RZHUHGE\86%SRUW
‡ 'HGLFDWHGRQERDUGVRXQGFDUG
‡ 4XLFNSOXJDQGSOD\FRQQHFWLYLW\
‡ :RUNVZLWKDOOGLJLWDOPRGHV
‡ 'R]HQVRIIUHHGRZQORDGDEOHSURJUDPV
‡ ,QQRYDWLYHFLUFXLWU\HOLPLQDWHVGHOD\FRQWURO
‡ 7UDQVPLW DQG UHFHLYH XVLQJ WUDGLWLRQDO PRGHV
VXFKDV&:577<6679$072536.DQG
(FKR/LQN RU H[SORUH QHZHU PRGHV OLNH 07
:,1025:635DQG:6-7;.H\LQDQGVWDWLRQ
PHPRU\WXQLQJ
‡ 3HUIHFWIRUEDVHVWDWLRQSRUWDEOHRU´JRNLWµ
VHHFRPSOHWHFDEOHUHIHUHQFHFKDUWDWZZZIDUDOORQXV +523ULFH

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


3$&.(7 5,*&21752/
5DGLR&RQWURO6RIWZDUH

3UHPLHU
+DP5DGLR
6RIWZDUH6XLWH

5,*&21752/ 6$7(//,7(75$&.,1*
2UJDQL]H EXWWRQV VOLGHUV DQG GURSGRZQV WR 7DNH WKH JXHVVZRUN RXW RI VDWHOOLWH RSHUD
WRJJOH UDGLR RSWLRQV VHOHFW PRGHV DQG ÀOWHU WLRQVXVLQJWKHODWHVWRUELWDOPHFKDQLVHTXD
VHWWLQJVDQGFRQWUROOHYHOLQSXWVYLD\RXUFRP WLRQDQGXSWRWKHPLQXWH.HSOHULDQHOHPHQW
.$0;/ΠSXWHUVFUHHQ LQIRUPDWLRQ
0XOWL0RGH'63&RQWUROOHU /2*%22. 527$725&21752/
+523ULFH $ FRPSOHWH '; RSHUDWLRQV FHQWHU /RJERRN LV ,QWHJUDWLQJZLWK/RJERRNDQG6DWHOOLWH7UDFN
.DQWURQLFV
WKLUGJHQHUDWLRQPXOWLPRGH71&LV WKHLGHDOVKDFNDFFHVVRU\IRUHYHU\RQH.HHS LQJ5RWDWRU&RQWUROPDQDJHVEHDPKHDGLQJV
DVWDWHRIWKHDUWGHVLJQIRURSHUDWLRQVRQ+) WUDFN RI DOO LPSRUWDQW FRQWDFW LQIRUPDWLRQ ZLWK YLDDQ\FRPSXWHULQWHUIDFHGURWDWRUFRQWUROOHU
9+)DQG8+)ZKLOHVXSSRUWLQJ'63PRGHPV WKHFOLFNRIDPRXVH 6XSSRUW
DQGSRSXODUQHZPRGHVRIRSHUDWLRQ7KHXQLW
KWWSVVXSSRUW+DP5DGLR'HOX[HFRP
SURYLGHVPRGHVRI3DFNHWRU ',*,7$/02'(6
)RUXPV
EDXG*7253DFWRU$0725$5436. '0LVFDSDEOHRIGLJLWDOPRGHVLQFOXGLQJ
KWWSVIRUXPV+DP5DGLR'HOX[HFRP
577< 1$97(;$07(;$6&,, :()$; DQG &: 577< 6679 36. 07 DQG PRUH
&: ,W KDV D GXDO SRUW PDLOER[ DQG UHPRWH 'LJLWDO0DVWHULQWHUIDFHVZLWKWKHSRSXODU.,(/
+523ULFH&'YHUVLRQ
6<623 DFFHVV ,W LV *36 10($ FRP :LQ.H\HU
+523ULFH86%ÁDVKGULYHYHUVLRQ
SDWLEOH DQG SURYLGHV .DQWURQLFV +RVW 0RGH
DQG.,66
+)'LJLWDO%RRNV
5DGLR7RGD\*XLGH *HWRQWKH$LUZLWK
WR+)'DWDRQ)7 36. +)'LJLWDO
.3&3OXV.86% QG
9+)8+)71& (GLWLRQ
+523ULFH
7KLV FRPSDFW ORZ FXUUHQW 71& KDV EHFRPH
WKHZRUNKRUVHRISDFNHWUDGLRWRGD\,WIHDWXUHV 0DQ\UDGLRDPDWHXUV ([SORUH GLJLWDO
PXOWLSOHSDFNHWFRQQHFWVGLJLSHDWLQJIRU$356Š ZKR DUH ÀQGLQJ WKH UDGLR EHORZ 
RSHUDWLRQV :()$; UHFHSWLRQ D *36 PRGH EDQGV TXLHW DUH QRZ 0+] +HUH LV
IRU WUDFNLQJ SHUVRQDO SDFNHW PDLOER[ DQG LV WXUQLQJ WR +) GDWD D VWHSE\VWHS
DYDLODEOHZLWK56LQWHUIDFHDVZHOO RQ)7DQG36.DQG JXLGH WKDWҋOO JHW
ÀQGLQJORWVRIDFWLYLW\ \RX VWDUWHG
ZKHQXVLQJWKHZHDNVLJQDOPRGHVRIIHUHGE\ :ULWWHQLQDQHDV\WRXQGHUVWDQGFRQYHUVD
:6-7;7KHUH KDV EHHQ DQ H[SORVLRQ LQ WKH WLRQDOVW\OHWKLVERRNZLOOVKRZ\RXKRZWRVHW
SRSXODULW\ RI WKHVH PRGHV DQG WKLV QHZ ERRN XS DQG RSHUDWH \RXU RZQ +) GLJLWDO VWDWLRQ
RIIHUVWKHYHU\ODWHVWDGYLFHRQKRZWRVHWXS ,WҋVDIXQDQGHDV\ZD\IRUEHJLQQHUVWRJHW
\RXUVWDWLRQDQGRSHUDWH RQWKHDLU
.3&3OXV.86% /HWҋV%XLOGDQ+)'LJLWDO6WDWLRQ
7KLV *XLGH H[SODLQV KRZ WR VHW XS D PRGHUQ ([SORULQJWKHWKUHHHVVHQWLDOFRPSRQHQWVRI
'XDO6SHHG'XDO3RUW71& GLJLWDO PRGHV VWDWLRQ XVLQJ MXVW D 3& DQG D \RXUVWDWLRQDUDGLRDFRPSXWHUDQGDGHYLFH
+523ULFH WUDQVFHLYHU'HWDLOHGDQGSUDFWLFDOGLVFXVVLRQV WKDWWLHVWKHPWRJHWKHU
7KLVLVWKHUDSLGGHOLYHU\PRGHOVXSSRUWLQJ H[SODLQ WKH PRQLWRULQJ DQG RSHUDWLQJ SURFH 36.577<DQG-7
EDXG,WIHDWXUHVERWKDQGSDFNHW GXUHVUHTXLUHG +DQGVRQ LQVWUXFWLRQV WR JHW VWDUWHG ZLWK
SRUWVDGYDQFHG$356ŠGLJLSHDWLQJ $356Š WKH WKUHH PRVW SRSXODU +) GLJLWDO RSHUDWLQJ
LVDWUDGHPDUNRI%RE%UXQLQJD  .1HW QHW ‡ &RYHUV:6-7;VRIWZDUHLQFOXGLQJ)7 PRGHVWRGD\
ZRUNLQJDPDWHXUEHHSHU SDJLQJ WKHDELOLW\WR FRQWHVWPRGHVIRUZHDNVLJQDOV 0)6.DQG2OLYLD
GRZQORDG(0:,1ZHDWKHUEURDGFDVWVDQGLV ‡ ,QFOXGHVWKH)OGLJLIUHHZDUHIRUWKHP\UL :LWKWKHVHWZRPRGHV\RXҋOOVWLOOEHFKDWWLQJ
DYDLODEOHZLWK56LQWHUIDFHDVZHOO DGRIRWKHU+)GLJLWDOPRGHVDYDLODEOH ORQJ DIWHU WKH EDQGV KDYH VXSSRVHGO\ JRQH
‡ &RYHUVWKHQHZ)R[DQG+RXQGVPRGH ´GHDGµ
‡ 'LVFXVHV FRQFHSWV VXFK DV )RUZDUG (U 3$&725
)D[1XPEHUV URU &RUUHFWLRQ )(&  &\FOLF 5HGXQGDQF\
&KHFNV &5&  DQG )RXULHU DQDO\VLV LQ D
3$&725LVDJUHDWZD\WRJHW\RXUPHVVDJH
WKURXJKHUURUIUHH
3DJHV VLPSOLÀHGZD\XVLQJGLDJUDPVDQGWHUPVID
PLOLDUWRPRVWUDGLRDPDWHXUV
3OXV DUWLFOHV IURP WKH SDJHV RI 467 PDJD
]LQH
+523ULFH +523ULFH

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


5,*3&&211(&7,21
$5,*EODVWHULVWKHHDVLHVWZD\WRFRQQHFW\RXUUDGLRWR\RXUFRPSXWHUWRRSHUDWH36.577<:LQ0252OLYLD3DFNHW
DQGPRUH&KDVH';HDVLO\XVLQJDGYDQFHG-7$8QULYDOHGVLPSOLFLW\7UXH)6.7UXHNH\HG&: &$7&,9&RQWURO
²VHHZK\WKHVHDUHWKH:RUOG
V)LQHVW'LJLWDO0RGH,QWHUIDFHV,QFOXGHV'9'ZLWKPRUHWKDQSRSXODUVRIWZDUHSURJUDPV
$OO5,*EODVWHUVDUHJURXQGLVRODWHGDQG5))LOWHUHG6XSSOLHGZLWKDOOWKHFDEOHV\RXQHHGWRJHWRQWKHDLU7KHVHPRGHOV
ZRUNZLWKPRUHWKDQUDGLRPRGHOV.LWVDUHDYDLODEOHIRUSLQURXQGRU5-FRQQHFWRUV

5,*EODVWHU
3OXJ 3OD\

5,*EODVWHU%OXH 6LPSOH86%3OXJDQG3OD\LQVWDOODWLRQ2QHSOXJWRWKHUD
GLRDQGRQH86%FRQQHFWLRQWRWKHFRPSXWHU%XLOWLQ86%
7KH:HVW0RXQWDLQ5DGLR5,*EODVWHU%OXHLVDFRPSOHWHO\LQWHJUDWHG%OXHWRRWKZLUH WRVHULDOFRQYHUWHUIRU377&:DQG&$7RU&,9ULJFRQ
OHVVLQWHUIDFH8VHD%OXHWRRWKKHDGVHWZLWK\RXUUDGLR3URYLGHVVDIHVHFXUHKDQGV WURO86%SRZHUHGQRDGGLWLRQDOSRZHUQHHGHG&RPSDFW
IUHHRSHUDWLRQ92;377LVDYDLODEOHLQWKHKHDGVHWPRGH3DLUZLWKDQ\FRPSDWLEOH JUHDWIRUPRELOHRU453RSHUDWLRQ)XOO\LVRODWHG&:NH\
ODSWRSRUWDEOHWIRUPRELOHRSHUDWLRQ8VHZLWK<DHVX.HQZRRG,FRP7HQ7HFDQG LQJRXWSXWIRUGLUHFWNH\LQJRI\RXUULJ
V&:,QFOXGHVUDGLR
(OHFUDIWUDGLRV3DLULQJUDGLRWRDQ\FRPSDWLEOHVPDUWSKRQHRUWDEOHWSURYLGHVIRUPR VSHFLÀF IW GDWD MDFN DGDSWHU FDEOH µ FRPSXWHU DXGLR
ELOHULJFRQWURORIGLJLWDOPRGHV &RPSDWLEOHVRIWZDUHLVUHTXLUHG 3HUIHFWIRUPL[HG DQG86%FDEOHVDQGVRIWZDUHSURJUDPV'9'
PRGHQHWVSOXV36.577<:LQ025DQG3DFNHW2SHUDWHXVLQJRYHUSRSXODU +523ULFH
KDPUDGLRVRXQGFDUGV RSWLRQDO +523ULFH

5,*EODVWHU
1RPLF
7KH 5,*EODVWHU 1RPLF
LV D VPDOO VLPSOH UXJ
JHG DQG LQH[SHQVLYH
VRXQG FDUG LQWHUIDFH
SHUIHFW IRU (FKROLQNŠ
5,*EODVWHU$GYDQWDJH SRUWDEOH RU ÀHOG VHW
XSV6XSSOLHGZLWKERWKDVWDQGDUG'%56VHULDOFDEOH
7KHRQO\5,*EODVWHUZLWKDEXLOWLQVRXQGFDUG,WZRUNVZLWKDQ\UDGLRXVLQJRQH86% DQG 86% FDEOH LQWHUIDFH VXSSRUWHG IRU 0DF 26 
FDEOHWRFRQQHFWWR3&%XLOWLQ&$7RU&,9ULJFRQWUROLQWHUIDFH0LFLQSXWZLWK377 /LQX[ :LQGRZV 6( ² 9LVWD  DQG  ELW  0D\ EH
RYHUULGHDQGLQWHUUXSW)URQWSDQHOWUDQVPLWDQGUHFHLYHDXGLRDQG92;GHOD\FRQ XVHGZLWKROGRUQHZFRPSXWHUVZLWK\RXUFKRLFHRI86%RU
WUROV)XOO\LVRODWHG&:)6.RXWSXWIRUNH\ERDUG&:DQG577<,QFOXGHV  IW 56'%VHULDO1RH[WHUQDOSRZHUVXSSO\QHFHVVDU\VR
SLQPLFFDEOH  IWDXGLRFDEOH86%FDEOHVRIWZDUHSURJUDPV'9'DQG LWLVJUHDWIRUSRUWDEOHRU453RSHUDWLRQ6LPSOHDQGLQH[
DFFHVVRU\NLW+523ULFH SHQVLYHFKRLFHIRUDGHGLFDWHG,QWHUQHWOLQNZLWKWKH(FKR
/LQNŠ6\VWHP,QFOXGHV
SLQURXQGFLUFXODUPLFFDEOH
5,*EODVWHU3OXJ 3OD\5DGLR9HUVLRQV 
5-PLFFDEOH86%WR56PDOHDGDSWHU
'%0WR
'%)VHULDOFDEOH  
DXGLRFDEOHVRZQHU
VPDQX
DOVRIWZDUHSURJUDPV'9'DQGDFFHVVRU\NLW
+523ULFH
5,*WDON
86%5LJ&RQWURO,QWHUIDFH
&RQWURO\RXUUDGLRXVLQJ\RXU3&86%WR77/OHYHOLQWHU
IDFHIRU&,9FRQWURO,FRP7HQ7HFRU(OHFUDIW&$7FRQWURO
IRU<DHVXDQG&,9UDGLRV3RFNHWVL]HG
86%GRQJOH'HVLJQWHVWHGZLWKPRVWULJ
FRQWURODQGORJJLQJVRIWZDUH&RPSDWLEOH
ZLWK86%RUORZHU,QFOXGHVVRIWZDUH
5,*EODVWHU$FFHVVRU\&DEOHV SURJUDPV'9'

2UGHUSUHSDFNDJHGZLWKUDGLRFDEOH
5,*WDONIRU,&20&,9
  +523ULFH
5,*WDONIRU<DHVX0LQL'LQ
  +523ULFH
5,*WDONIRU<DHVX'LQ
  +523ULFH

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


62)7:$5(

9HKPV:L[<W[OL,HZ`>H`
6HW8S$OOWKH)HDWXUHV1RW-XVWWKH0HPRULHV
ZLWK576\VWHPV3URJUDPPLQJ6RIWZDUHDQG&DEOHV
$/,1&2 ,&20 .(1:22' <$(68 
'- ,&9 70 )7'
'- ,&7 70' )7
XQLTXHUDGLR
'-* ,&$' 70''* )7 3URJUDPPHUV&KHFN
'-* ,& 70* )7 IRU\RXUUDGLRPRGHODW
'5 ,& 76 )7' ZZZUWV\VWHPVFRP
,&352 766* )7'
$<721( ,&352 76 )7
$7' ,' )7
$789 ,' 32:(5:(5; )7$
$789 ,& '%; )7
$7 ,& )7
$789 ,& 4<7 )7
$789OOO ,& .7' )7
,& .7'5 )7
%$2)(1* ,& .7893OXV )7
%) ,& )7
%)) ,' 7<7 )7
%)89%3OXV ,' 7+895 )7
895 ,& 7+89) )7';
89+; ,& 7+ )7';
,& 7+ )7';
%7(&+ ,& )70
89; ,& :28;81 )70
89;
89;
,&
,&
.*89'3
.*89'
)70
)70
7KH3URJUDPPLQJ
89 ,&5
,&5
.*89'
.*89'
)70
9;
6\VWHPWKDW:RUNV
,&20 ,&9 .*895 9;
´,VSHQWFRXQWOHVVKRXUVWU\LQJWRSURJUDPP\
,&7 ,& .*89''9; 9;
,&5 .*89''3/86 9; &KLQHVHUDGLRZLWKWKHLUVRIWZDUHDQG
,&5 -(7675($0 .*897( 9; 86%FDEOHZLWKQRVXFFHVV$IWHUSXUFKDVLQJ
,&4 -7 .*89' 9;'
WKH576\VWHPVFDEOHDQGVRIWZDUHNLW
,&7 -70 .*8933$5 9;*
,&7 -70 .*8933/ 9; HYHU\WKLQJZRUNHGJUHDW,WWRRNPRUHWLPH
,&5 .*89+ IRUP\FRPSXWHUWRVWDUWXSWKDQLWGLGWR
,&5 .(1:22' =$6721(
JHWWKHVRIWZDUHDQGFDEOHWRZRUNµ
,'3OXV 7+'$'* <$(68 03
,&: 7+' )7' 03 .'0'3LQ3H\WRQ&RORUDGR
,'3OXV 7+)) )7' 03
,'$( 7+* )7 03
,'3OXV 7+. )7 -VY4VYL0UMVYTH[PVU!
,&7 709$ )7 DQGPDQ\ ^^^Y[Z`Z[LTZJVT
,& 709 )7 RWKHUV
 
(
 DFK3URJUDPPHULVXQLTXHWRDVSHFLÀFUDGLR ;LJO:\WWVY[!

+52&DQ1RZ6XSSO\5DGLR3URJUDPPLQJ6RIWZDUH IRU$Q\
5DGLR0RGHOWKDW576\VWHPV6XSSRUWV,QFOXGLQJ5DGLRV)URP
$OLQFR $Q\VHFX $Q\7RQH %DRIHQJ %DRMLH %7HFK 'XVW\0RWRUVSRUWV
+HVHQDWH +<6 ,FRP -HW6WUHDP -LPWRP -XHQWDL .HQZRRG /HL[HQ
/XLWRQ 3RIXQJ 3RZHUZHU[3X[LQJ 4XDQVKHQJ 4<7 5DGLRGGLW\ 5HWHYLV
5XJJHG5DGLR 6DLQ6RQLF 6RFRWUDQ 7DONSRG 7';2QH 7HUD 7RNPDWH
7RQID 7<7 9*& :/1 :RX[XQ <DHVX =DVWRQH
0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   
5$',25(027(&21752/
5(027(5,*
7KH8OWLPDWHLQ5HPRWH&RQWURO
1RZZLWK'XDO
6WHUHR 5HFHLYHU $QH[DPSOHRI
DQG &:ZLWKUHPRWH
,QFOXGHV9 FRQWUROOHG5DGLR
3RZHU6XSSO\
&:.H\HU
$ &: NH\HU KDV EHHQ LPSOHPHQWHG LQ WKH
7KH 5HPRWHULJ V\VWHP LWVHOI ZLOO QRW 55&60N,,66HW VRIWZDUH WR PDNH
LQWURGXFHDQ\ODWHQFLHVDQGWKRVHLQ &:RSHUDWLRQSRVVLEOHHYHQZLWKORQJHU,Q
WURGXFHGE\WKH,QWHUQHWZLOOUDUHO\EH WHUQHWODWHQFLHVDQGMLWWHU'XULQJQRUPDORS
DQRWLFHDEOHSUREOHP7KH5HPRWHULJ HUDWLRQZHGHSHQGRQWKHUDGLR
VVLGHWRQH
V\VWHP DOVR LQFOXGHV D XQLTXH VR IRU&:VRWKHSUREOHPRI,QWHUQHWODWHQF\
OXWLRQ IRU RSHUDWLQJ &: RYHU WKH ,QWHUQHW ZLWK LV VROYHG E\ WKH VLGHWRQH EHLQJ JHQHUDWHG
DPRQJRWKHUWKLQJVDEXLOWLQ&:NH\HUWKDWXVHVD ORFDOO\LQWKH5HPRWHULJER[5HPRWHULJDX
VWDQGDUGPPVWHUHRSOXJ WRPDWLFDOO\ PXWHV WKH VLGHWRQH JHQHUDWHG
5HPRWHULJ E\WKHUDGLRIRU[QXPEHURIPVDIWHUWKHGRW
55&0.,,66HW 7KH 5HPRWHULJ 55&0N,,66HW LV FRQQHFWHG RUGDVKLVVHQWWKHGHOD\FDQEHDGMXVWHG
²+523ULFHIRUWKH6HW WR WKH ,QWHUQHW SULPDULO\ YLD  RU  0ELW (WKHU GHSHQGLQJRQWKHODWHQF\
QHWFDEOHDQGÀ[HGFRQQHFWLRQVOLNH'6/FDEOHRU
7KH 5HPRWHULJ 55&0N,,66HW :/$1*EDVHGPRELOHVROXWLRQVZLOODOVRZRUNDO 7KH&:KDQGOHULVDNLQGRIDGMXVWDEOHMLW
ZDVGHYHORSHGWRFRQWURO$PDWHXU5DGLR WKRXJKRFFDVLRQDOO\ZLWKUHGXFHGSHUIRUPDQFH7KH WHUEXIIHUIRUWKH&:NH\HUDWWKHUDGLRHQG
VWDWLRQVUHPRWHO\YLDWKH,QWHUQHWLQDXVHU V\VWHPLVSRUWDEOHDQGFDQEHXVHGIURPDOPRVWDQ\ ,IWKHODWHQF\RI\RXU,QWHUQHWFRQQHFWLRQLV
IULHQGO\DQGFRVWHIIHFWLYHPDQQHU QHWZRUN FRQQHFWLRQ LQ WKH ZRUOG 6HVVLRQ LQLWLDWLRQ QRW FRQVWDQW WKH GHOD\ LQ PV  FDQ EH VHW
DXGLR 9R,3  DQG GDWD DUH WUDQVIHUUHG XVLQJ VWDQ EHIRUH WKH UDGLR LV NH\HG 7KH &: NH\HU
5HPRWHULJ XQLWV DUH XVHG LQ SDLUV RQH GDUGL]HGSURWRFROVOLNH6,3573HWFZKHUH\RXFDQ UHFRQVWUXFWVWKHWUDQVPLVVLRQRQWKHÁ\EH
XQLWLVFRQQHFWHGWRWKHUDGLRDQGWKHRWK VHOHFW GLIIHUHQW DXGLR TXDOLWLHV GHSHQGLQJ RQ DYDLO IRUHLWLVVHQWDV\VWHPWKDWLVPXFKPRUH
HUWRWKHFRQWUROHTXLSPHQW7KHV\VWHPLV DEOHEDQGZLGWK7KH5HPRWHULJV\VWHPLVHDVLO\FRQ WROHUDQWRIYDU\LQJODWHQFLHV MLWWHU /HQJWK
XQLTXHLQWKDWQR3&LVQHHGHGERWKYRLFH ÀJXUHGYLDPRGHUQ86%DQG:(%EDVHGXVHULQWHU LHUGHOD\VHWWLQJVPD\SURYLGHKLJKHUWROHU
DQGGDWDFRPPXQLFDWLRQVDUHKDQGOHGE\ IDFHV6WHUHR GXDOUHFHLYHU ZRUNVRQO\ZLWKUDGLRV DQFH DJDLQVW MLWWHU EXW ZLOO DOVR HIIHFWLYHO\
WKHWZRXQLWV ZLWKGXDOUHFHLYHUV GHOD\WKHWUDQVPLWWHG&:VLJQDO

7KH55&0N,,66HWFDQEHFRQÀJ
XUHG WR ZRUN ZLWK DOPRVW DOO KDP HTXLS ([DPSOH5HPRWHFRQWURORI.HQZRRG76
PHQWFXUUHQWO\DYDLODEOHIURP,FRP.HQ
ZRRG <DHVX DQG (OHFUDIW 5HPRWHULJV
DUH HVSHFLDOO\ XVHIXO LQ VLWXDWLRQV ZKHUH
\RXDUH  QRWDOORZHGWRLQVWDOODQWHQQDV
DW\RXUKRPHORFDWLRQ  WKHQRLVHOHYHO
LVVRKLJKWKDWDQRUPDOVLJQDOH[FKDQJH
LVQRWGLVFHUQLEOH  \RXZDQWWREXLOGDQ
DQWHQQDV\VWHPWRRODUJHIRU\RXUORFDOXU
EDQDUHDRU  \RXGRQRWZDQWWREHGH
SHQGHQWXSRQD3&IRUWKHUHPRWHFRQWURO

7KH XOWLPDWH IXQFWLRQDOLW\ RI WKH 5H


PRWHULJ55&0N,,66HWFDQEHH[
SHULHQFHG ZKHQ WKH V\VWHP LV XVHG ZLWK
UDGLRV KDYLQJ GHWDFKDEOH IURQW SDQHOV
VXFK DV WKH .HQZRRG 76 76
RU ,FRP ,& VHULHV 6LPSO\ UHSODFH
WKH FDEOH EHWZHHQ WKH FRQWURO SDQHO DQG $V DQ H[DPSOH WKH GLDJUDP WKHFRQWUROSDQHODQGRQHFRQ VLPLODU VLWXDWLRQ WR 6,3EDVHG
WKHUDGLRZLWKWKH5HPRWHULJV\VWHP7KH VKRZV D 76 LQ XVH ZLWK QHFWHG WR WKH UDGLR LWVHOI 1R ,3 WHOHSKRQHV $OO DSSHDUDQF
<DHVX7ZLQYHUVLRQDQG(OHFWULF.7ZLQ WKH 55&0N,,66HW 3&LVQHFHVVDU\LQWKLVFDVH HV DQG IXQFWLRQV ZLOO EH DV LI
YHUVLRQVDUHDYDLODEOH $Q\ RI WKH DYDLODEOH UDGLRV WKHIURQWSDQHODQGUDGLRZHUH
ZLWK GHWDFKDEOH IURQW SDQHOV :KHQ WKH SRZHU EXWWRQ LV GLUHFWO\ FRQQHFWHG 3UHVHQWO\
7KH V\VWHP DOVR ZRUNV YHU\ ZHOO ZLWK OLNHWKH,&DQG76 SUHVVHG WKH UDGLR RQ WKH UH WKH 76 LV WKH VLPSOHVW WR
PRUHWUDGLWLRQDOUHPRWHFRQWUROVLWXDWLRQV ZLOOEHFRQÀJXUHGLQWKHVDPH PRWH VLGH ZLOO VWDUW XS DQG DGDSW XVLQJ RQH DGGLWLRQDO
IURP3&EDVHGFRQWUROVRIWZDUHOLNH+DP PDQQHU 7KH FDEOH EHWZHHQ DOODXGLRDQGLQIRUPDWLRQIURP FDEOH RSWLRQDO.HQZRRG(
5DGLR'HOX[HWKH5HPRWHULJER[HVVROYH WKHIURQWSDQHODQGWKHUDGLRLV WKHSDQHOWUDYHOVYLDWKH,QWHU    &RQQHFWLRQ FDEOHV
WKHYRLFHDQGGDWDSUREOHPVEXW\RXGR UHSODFHG ZLWK WZR 55& QHW EHWZHHQ WKH SDLU RI 55& FDQ DOVR EH PDGH XVLQJ WKH
QHHGD3&IRUWKHFRQWUROVRIWZDUHLWVHOILQ 0N,,66HW RQH FRQQHFWHG WR 0N,,66HWXQLWV²DYHU\ 5-DQG5-FRQQHFWLRQV
WKLVSDUWLFXODUVHWXS

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


5$',2&21752/
7LPHZDYH7HFKQRORJ\ 1RLVH&DQFHOHU

0XOWLPRGH'DWD&RQWUROOHU 5DGLR&RQWURO

+DP
$1&
/LQN86%Œ
7KH$1&5)GHYLFHHOLPLQDWHVRUUHGXFHVSRZHU
3.6& 86% OLQHQRLVHFRPSXWHUQRLVH79JHQHUDWHGLQWHUIHU
0XOWLPRGH'DWD&RQWUROOHU 5LJ
HQFHDQGRWKHUW\SHVRIHOHFWULFDOQRLVH$WWDFK
WKHXQLWGLUHFWO\WRWKHDQWHQQDFRQQHFWRURIWKH
+523ULFH
&RQWUROOHU UHFHLYHURUWUDQVFHLYHUWRFDQFHOORFDOO\JHQHUDWHG
:LWKWKHDGGLWLRQWRWKH3;RIDEXLOWLQVRXQGFDUG QRLVHEHIRUHLWDIIHFWVWKHUHFHLYHU$*&FLUFXLWV
ULJ FRQWURO FRPSXWHU LVRODWLRQ DQG WRWDO 86% FRQQHF
3OXV 5HFHSWLRQRIVLJQDOVZHOOEHORZWKHQRLVHOHYHORI
+523ULFH
WLYLW\ WKH 3.6& EULQJV D QHZ OHYHO RI SHUIRUPDQFH WKHORFDOLQWHUIHUHQFHLVSRVVLEOH
ZLWK VKDUS DFFXUDWH '63 ÀOWHUV IRU DOO LWV LQWHUQDO GDWD 
PRGHVDQGGXDOWUDQVIRUPHULVRODWLRQIRUVRXQGFDUGGDWD 7R FDQFHO ORFDOO\ JHQHUDWHG LQWHUIHUHQFH WKH
PRGHV :HDN VLJQDOV PDJLFDOO\ DSSHDU IURP WKH QRLVH &RQQHFWDQG $1&GHWHFWVWKHLQWHUIHULQJVLJQDODQGDGMXVWV
DQG 450 ERXQFHV RII WKH QHZ '63 ÀOWHUV IRU FOHDQHU FRQWURO\RXU LWVSKDVHDQGPDJQLWXGHVRWKDWLWPDWFKHVWKH
FRS\ZLWKIHZHUHUURUVWKDQWKHROGDQDORJÀOWHUV RIIHQGLQJLQWHUIHUHQFHDWWKHUHFHLYHULQSXWEXWLV
WUDQVFHLYHUYLD GHJUHHVRXWRISKDVH)URQWSDQHOFRQWUROV
0RUH)LOWHUV%HWWHU)LOWHUV$XWRPDWLF6HOHFWLRQ 86%ZLWK3OXV DOORZDGMXVWPHQWRIERWKSKDVHDQGPDJQLWXGH
7KH 3.6& EULFNZDOO ÀOWHUV KDYH WLJKWHU EDQGZLGWK RSWLRQIRU75
DQGVWHHSHUVNLUWVIRULPSURYHGQRLVHDQG450UHMHFWLRQ VZLWFKNH\IRRW &RQQHFW WKH $1& EHWZHHQ WKH PDLQ VWDWLRQ
1HZ ÀUPZDUH YHUVLRQ   DOORZV D ZLGHU VHOHFWLRQ RI DQWHQQD DQG WKH UHFHLYHU DQWHQQD FRQQHFWRU$
VZLWFKLQSXWRU
ÀOWHUV WKDQ WKH RULJLQDO 3. VR WKH ÀOWHU FDQ PDWFK VHFRQG DQWHQQD FRQQHFWV WR WKH$1& WR SLFN
XVHU,2 XSQRLVH$VKRUWZLUHDQWHQQDRUVKRUWFROODSV
WKHPRGH7KHFRUUHFW'63ÀOWHULVDXWRPDWLFDOO\VHOHFWHG
ZKHQ\RXFKRRVHDQLQWHUQDOPRGH,Q577<7LPHZDYHҋV LEOHZKLSLVJHQHUDOO\VDWLVIDFWRU\IRUHOLPLQDWLQJ
SURYHQWZLQSHDNÀOWHUVSOXFNWKHPDUNDQGVSDFHWRQHV 7KH+DP/LQN86%Œ5LJ&RQWURO QRLVHVJHQHUDWHGDURXQGWKHRSHUDWLQJSRVLWLRQ
IURPWKHQRLVHDQG450IRUJUHDWFRS\,Q3$&725WKH OHU 3OXV LV D 86% WR ORJLF OHYHO RU LQ WKH KRXVH EXW DQ H[WHUQDO DQWHQQD ZRUNV
ÀOWHU EDQGZLGWK DXWRPDWLFDOO\ FKDQJHV ZKHQ WKH EDXG FRQYHUVLRQGHYLFHIRU&$7&,9 EHWWHUWRHOLPLQDWHQRLVHVJHQHUDWHGRXWVLGHWKH
UDWH VKLIWV LQ UHVSRQVH WR WKH HUURU UDWH RI WKH OLQN ,Q HQDEOHG WUDQVFHLYHUV WKDW SUR KRPH$Q\ QRLVH DQWHQQD WKDW ZRUNV LQFOXGLQJ
0RUVH &:  WKH RSHUDWRU FDQ SUHVHW HLWKHU  +] RU YLGHV377RXWSXWNH\LQJRXWSXW FRPELQDWLRQVRIKRUL]RQWDODQGYHUWLFDOO\SRODUL]HG
+]EDQGZLGWK7KH3.6&LVFRPSDWLEOHZLWK DOO RUIRRWVZLWFKLQSXWRSWLRQV DQWHQQDVLVVDWLVIDFWRU\
:LQGRZV ;3 9LVWD DQG :LQGRZV  VRIWZDUH WHUPLQDO 7KH&$7&,9IHDWXUHSURYLGHV 7KH$1&RSHUDWHVDVDQDFWLYHDQWHQQDE\XVLQJ
SURJUDPVIRUWKH3. D ORJLF OHYHO VHULDO LQWHUIDFH WKHQRLVHDQWHQQDDQGWKH12,6(*$,1FRQWUROWR
6RXQG&DUG,QWHUIDFHDQG5LJ&RQWURO ZKLFK FRQQHFWV GLUHFWO\ ZLWK DPSOLI\WKHDQWHQQDRXWSXW7KHXQLWFDQDOVREH
)RU PD[LPXP ÁH[LELOLW\ 6RXQG &DUG 71& VZLWFKLQJ LV QRQ56&$7&,9LQSXWVRQ XVHGDVDGLYHUVLW\FRPELQHUWRSHDNZHDNVLJQDOV
ERWK VRIWZDUH DQG SDQHO VZLWFK FRQWUROOHG VRXQG FDUG .HQZRRG,FRP<DHVX7HQ7HF RUQXOOLQWHUIHULQJVLJQDOV+523ULFH
PRGHVHOHFWLRQLVVRIWZDUHFRQWUROOHG)RUH[DPSOHZKHQ (OHFUDIWDQG$OLQFRPRGHOV7KH
RSHUDWLQJZLWK5DGLR2SHUDWLQJ&HQWHUVRIWZDUHFKDQJ FRQWUROOHULVFRPSDWLEOHZLWKPRVW
LQJWR36.IURP3DFWRURU07LVDVLPSOHPHQXFOLFN
VRXQGFDUG DQGVRIWZDUHFRQWURO 6RXQG&DUG0RGHP
SURJUDPVVXFKDV3.7HUP
7KHVLQJOH86%FDEOHIURP\RXU3&DOVRPRYHV\RXUORJLF
OHYHO .HQZRRG 5;  7;  576  &76 <DHVX &$7 DQG
,FRP&,9DQG86%ULJFRQWUROLQWHUIDFHWRWKHEDFNSDQHO
+DP/LQN86%
RI\RXU3.6& 2SWLRQDO
$OOWKH3URYHQ0RGHV$OO6RXQG&DUG0RGHV
&DEOH$VVHPEOLHV
3.6& VXSSRUWV DOO QHZ VRXQG FDUG PRGHV LQ DGGL +/86%&,9&,9,FRP
WLRQ WR DOO RI WKH H[LVWLQJ 3. PRGHV 3DFWRU 9+)  7HQ7HF(OHFUDIW
+) SDFNHW $07256,725 %DXGRW $6&,, 0RUVH +)
:HDWKHU)$;7'0DQG1$97(;
 +523ULFH 1DYLJDWRU
+/86%&$70LQL',1FDEOH 7KH 1DYLJDWRU 86% VRXQG FDUG PRGHP KDV D
7KH 3.  36. FRPHV ZLWK D FRPSOHWH FDEOH DQG
DVVHPEO\IRU<DHVX)7 SURYHQ86%DXGLRVRXQGFKLSVL[)7',86%VH
FRQQHFWRUVHWLQDGGLWLRQWR7LPHZDYHҋVRQOLQHDQGWHOH
' ULDO&20SRUWVD.(/:LQ.H\NH\HUWUXH)6.
SKRQHVXSSRUW$VDOZD\V\RXFDQXSJUDGHDQ\3.
HYHUEXLOWWRWKHODWHVW3.6& +523ULFH DQG ULJ FRQWURO FRQQHFWLRQV IRU HYHU\ UDGLR $
EXLOWLQ 86% VRXQG FDUG ZLWK LVRODWHG DXGLR ,2
+/86%&21 FRQGXFWRU
‡'LJLWDOVLJQDOSURFHVVRU WR \RXU UDGLR SUHYHQWV JURXQG ORRSV$ VHFRQG
ZLWKPPSOXJWRRSHQ DXGLRLQSXWOHWV\RXXVHERWKUHFHLYHUVLQDGXDO
‡ '63ÀOWHUV
‡ 7ZLQSHDN577<ÀOWHUVDGDSWLYH3$&725ÀOWHUV HQGFDEOH UHFHLYHU UDGLR 7KH ORJLF OHYHO DQG 56 ULJ
‡ :RUNVZLWKDOOVRXQGFDUGPRGHV  +523ULFH FRQWUROSRUWVVXSSRUW\RXU,FRP&,9<DHVX&$7
‡ 86%VRXQGFDUGDXGLR .HQZRRGDQGRWKHUUDGLRV)URQWSDQHOFRQWUROV
‡ 5LJFRQWUROIRU,FRP<DHVXDQG.HQZRRGWUDQVFHLYHUV VHWERWK5;DXGLROHYHOV7;DXGLRRXWSXWOHYHO
‡ 6LQJOH86%FRPSXWHUFRQQHFWLRQ DXGLR PRQLWRU OHYHO DQG WKH &: VSHHG +52
‡ *DOYDQLFFRPSXWHULVRODWLRQ 3ULFH

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


',*,7$/6281' $8',262/87,216

:HVW0RXQWDLQ5DGLRDXGLRSURGXFWVFRQ +LJK3RZHU
WDLQ&OHDU6SHHFKŠQRLVHUHGXFWLRQGLJLWDO
VLJQDOSURFHVVLQJWKDWSURYLGHVH[WUHPHO\ :DWW6SHDNHU
HIIHFWLYHQRLVHUHGXFWLRQIRUYRLFHDQG
&:5HGXFHVRUHOLPLQDWHVDWPRVSKHULF 3:5VSNU
QRLVHKXPKLVVKHWHURG\QHV VWDWLF :
*UHDWO\LPSURYHVWKHVLJQDOWRQRLVHUDWLR
DQGWKXVWKHUHDGDELOLW\RIDOO462V 506OLQHDU
SRZHUDPSOL
ÀHUPLQLPL]HV
6LJQD/LQNŒ86% GLVWRUWLRQDWKLJK
,QWHJUDWHG86%6RXQG&DUG VRXQGOHYHOV
6LJQD/LQN7086%FRPELQHVWKHOHJHQGDU\SHU 6KDUSEDQGSDVVÀOWHUZLWK+]WRN+]
IRUPDQFH RI RXU 6/ ZLWK D VWDWH RI WKH DUW SDVV EDQG DWWHQXDWHV XQQHHGHG EDVV DQG
´EXLOWLQµ ORZQRLVH 86% VRXQG FDUG 7KH XQLW 1RLVH5HGXFWLRQ WUHEOHVRXQGV$GMXVWDEOHJDLQFRQWURO3OXJV
LQWRUDGLR
VVSHDNHURUKHDGSKRQHMDFN,GHDO
GHOLYHUV RSWLPXP SHUIRUPDQFH ZKLOH HOLPLQDW 3URFHVVRU IRUXVHLQWUXFNRUFDUIRULPSURYHGFRPPXQL
LQJWKHQHHGWRDWWDFKWR\RXUFRPSXWHU
VH[LVW
&/5GVS&OHDU6SHHFKŠ'63 FDWLRQLQQRLV\HQYLURQPHQW3RZHUFDEOHÀW
LQJVRXQGFDUG&RQYHQLHQWIURQWSDQHOFRQWUROV
DQGVLPSOLÀHGLQVWDOODWLRQPDNHWKLVRQHRIWKH 6SHDNHUDQGKHDGSKRQHDPSOLÀHUZLWK&OHDU WHGZLWK3RZHUSROHŠFRQQHFWRU
PRVWXVHUIULHQGO\LQWHUIDFHVRQWKHPDUNHW 6SHHFKŠ DGDSWLYH '63 QRLVH UHGXFWLRQ IRU +523ULFH
YRLFHDQG&:5HFRJQL]HVLQWHUPLWWHQWQDWXUH
$// VRXQG FDUG GLJLWDO DQG YRLFH PRGHV DUH RI&:DQGDOORZVLWWRSDVVQRLVHIUHH&RQ 1RLVH5HGXFWLRQ6SHDNHU
VXSSRUWHG E\ WKH 6LJQD/LQN70 86% LQFOXGLQJ WLQXRXVO\DGMXVWDEOHQRLVHUHGXFWLRQ&RQWDLQV &/5VSNU&OHDU6SHHFKŠ'63
WUDGLWLRQDO PRGHV VXFK DV 577< 6679 &: ZDWW LQWRRKPV SRZHUDPSOLÀHU6WXUG\
36. 07 DQG (FKR/LQNŠ 3HUIRUPDQFH DOXPLQXPFDVH,GHDOIRUPRELOHRSHUDWLRQDV
RQ DOO PRGHV KDV EHHQ RSWLPL]HG E\ WKH XVH ZHOODVKRPHVWDWLRQ3OXJVLQWRWKHVSHDNHURU
$PSOLÀHG ORXG
RI VSHFLDO ORZQRLVH SDUWV DQG FDUHIXO GHVLJQ KHDGSKRQHRXWSXWRQWKHUDGLR3RZHUSROHVŠ
VSHDNHU ZLWK
WHFKQLTXHV)URQWSDQHOFRQWUROVOHW\RXDGMXVW SOXJ LQWR DQ\ 9 VXSSO\  +52
&OHDU6SHHFK Š
\RXUWUDQVPLWDXGLRUHFHLYHDXGLRDQGWUDQVPLW 3ULFH
DGDSWLYH '63
GHOD\RQWKHÁ\
QRLVH UHGXFWLRQ
7KH 6LJQD/LQN70 86% ZRUNV ZLWK $// UDGLRV IRUYRLFHDQG&:
DQGFDQEHDWWDFKHGWRWKHPLFMDFNGDWDSRUW 5HFRJQL]HV LQWHUPLWWHQW QDWXUH RI &: DQG
RU DFFHVVRU\ SRUW VHH WDEOH EHORZ  $ ZLGH DOORZV LW WR SDVV QRLVH IUHH &RQWLQXRXVO\
VHOHFWLRQ RI IXOO\ DVVHPEOHG UDGLR FDEOHV LV &/5VWHUHR YDULDEOHDGDSWLYHÀOWHUQRLVHUHGXFWLRQ&RQ
DYDLODEOHIRUFRPPRQEDVHDQGPRELOHUDGLRV WDLQV LQ ORXGVSHDNHU ZLWK  :DWWV 506
$VSHFLDOXQWHUPLQDWHGUDGLRFDEOHLVDYDLODEOH ,QGHSHQGHQW '63 QRLVH UHGXFWLRQ IRU PDLQ PD[LPXPDPSOLÀHU9ROXPHFRQWURONQREIRU
IRUKDQGKHOGVDQGUDGLRVWKDWXVHDQRQVWDQ DQGVXE5;RUWZRVHSDUDWHUDGLRV)HDWXUHV DGMXVWPHQW RI LQWHUQDO VSHDNHU VRXQG OHYHO
GDUGFRQQHFWRU ÁH[LEOHDXGLRVZLWFKLQJLQGHSHQGHQWYROXPH )URQW PRXQWHG   LQFK VWHUHR RXWSXW MDFN
WRQH DQG ÀOWHULQJ IRU ERWK FKDQQHOV 377 LQ IRU SRZHUHG VSHDNHUV RU  RKP RU KLJK
7KH 6LJQD/LQN70 86% FRPHV IXOO\ DVVHPEOHG SXWIRUIDVWDXGLRUHFRYHU\GXDOSRZHURSWLRQ HU  KHDGSKRQHV  +52 3ULFH
DQGWHVWHG1RH[WHUQDOSRZHUUHTXLUHGSRZHU 86%RUY '&   +523ULFH 
LV IURP WKH 86% SRUW 7KH XQLW FRPHV ZLWK D 
86% FDEOH 6SHFLI\ ZKLFK FDEOH LV WR EH LQ 5),PPXQH
FOXGHGE\XVLQJWKHWDEOHEHORZ$OVRLQFOXGHG 9+) 8+) &RPSXWHU6SHDNHUV
PRQRFDEOHMXPSHUZLUHVDOOHQZUHQFKVRIW
ZDUH &' GRFXPHQWDWLRQ 6XSSRUWV :LQGRZV
%DQGSDVV)LOWHUV &20VSNU
0DF26RUODWHUDQG/LQX[)&&FHUWLÀHGWR
FRPSO\DVD&ODVV%GLJLWDOGHYLFH8QLWSULFHV
LQFOXGLQJWKHUDGLRFDEOHDUHVKRZQLQWKHWDEOH
EHORZ+523ULFHHDFK
 (OLPLQDWH +$0
UDGLR VWDWLRQ LQ
WHUIHUHQFH 5H
*HW ULG RI XQ SODFHV 5) LQWHU
0LFURSKRQH&RQQHFWRUV ZDQWHG QRLVH IHUHQFH SURQH
6/86%5 )RUSLQURXQGPLFFRQQHFWRU DQG JLYH \RXU FRPSXWHU VSHDN
6/86%5 )RUSLQURXQGPLFFRQQHFWRU  P DQGRU  HUV $PSOLÀHG
6/86%5- )RU5-PLFFRQQHFWRU 0+]UHFHLYHUWKH VSHDNHU V\VWHP RSWLPL]HG IRU RSHUDWLRQ LQ
6/86%5- )RU5-PLFFRQQHFWRU EHVW *HW ULG RI FORVHUDQJHRIDQ\UDGLRWUDQVPLWWHU([FHS
6/86%.; )RU(OHFUDIW.; XQZDQWHGQRLVHDQGJLYH\RXUPDQGRU WLRQDOO\ KLJK UHMHFWLRQ RI UDGLR IUHTXHQF\ LQ
0+] UHFHLYHU WKH EHVW IURQW HQG VHQVLWLYLW\ WHUIHUHQFHIURPWR0+]6WHUHRKLJK
$FFHVVRU\3RUW&RQQHFWRUV 5HGXFHWKHVTXDZNVDQGVTXHDOVRILQWHUPRG ÀGHOLW\UHVSRQVHIRUXVHZLWKYRLFHRUPXVLF
6/86%3' )RUSLQ',1GDWDDFFHVVRU\SRUW DQG SURWHFW IURP OLJKWQLQJ *RRG SDVVEDQG +LJK :DWWV SHU FKDQQHO DFRXVWLF SRZHU
6/86%3' )RUSLQ',1GDWDDFFHVVRU\SRUW ORVV DQG RXWRIEDQG DWWHQXDWLRQ ZLWK H[FHO RXWSXWFDQEHKHDUGFOHDUO\LQQRLV\HQYLURQ
6/86%30 )RUSLQPLQL',1GDWDDFFSRUW OHQW6:57KHVHÀOWHUVDUHPDGHWREHWUDQV PHQWV%XLOWLQDPSOLÀHUDVVXUHVFRPSDWLELOLW\
6/86%. )RU(OHFUDIW. PLWWHGWKURXJK WHVWHGWR:DWWV DQGDUH ZLWKPRVWFRPSXWHUVDQGRUWZRZD\UDGLRV
6/86%, )RU,FRPSLQ',1DFFHVVRU\SRUW DYDLODEOH ZLWK 8+) RU 7\SH ´1µ FRQQHFWRUV 3RZHUHG YLD 86%  +52 3ULFH
6/86%. )RU.HQZRRGSLQ',1DFFSRUW +523ULFHV9+)8+) SHUSDLU

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


),/7(560,&523+21(6
6SHDNHUV+HDGSKRQHV 0LFURSKRQHV
1RLVH&DQFHOOHU

6LJQDO(QKDQFHU
0)-
$QDGMXVWDEOHDQWHQQDQHWZRUNWKDWFRPELQHVWZR 0)-
DQWHQQD VLJQDOV WR JLYH YDULRXV GLUHFWLRQDO SDW 'HVNPLFURSKRQHWDLORUHGIRU66%$GMXVWDEOH
WHUQV 1XOO RXW VWURQJ LQWHUIHULQJ VLJQDOV RU SHDN LQFKERRP*UDSKLFHTXDOL]HUFRPSUHVVRU
ZHDN VLJQDOV DW WKH SXVK RI D EXWWRQ 8VH H[WHU 98PHWHURQDLULQGLFDWRU377ORFNVZLWFK
QDORUEXLOWLQDFWLYHQRLVHDQWHQQD:RUNVRQDOO
PRGHVIURP%&WRORZ9+)(OLPLQDWHVHYHUHOLQH +HDGSKRQHV
QRLVHIURPPDQ\VRXUFHVEHIRUHLWHYHUJHWVLQWR 0)-%
\RXUUHFHLYHU&DQUXQRII9'&RU9$&XV 0)-ҋV FRPPXQLFDWLRQ KHDGSKRQHV DUH
LQJ0)-' SHUIHFW IRU DPDWHXU UDGLR DQG VKRUWZDYH
OLVWHQLQJ$OO PRGHV HDFK HDUSKRQH ZLWK
VHSDUDWH YROXPH FRQWURO 6XSHU SDGGLQJ
ҋ FRUG 3DGGHG KHDGEDQG DQG FRPIRUW
FXVKLRQHDUSDGV0RQRVWHUHRDGDSWRU
LQFOXGHG

0)-
6LPLODU WR WKH 0)- ZLWKRXW WKH DFWLYH DQ
WHQQD

1RLVH)LOWHU 0)-
$EDVLF66%ERRPPLFZLWK377VZLWFK

0)-
$&/LQH)LOWHU 0LFURSKRQH FRQWURO FHQWHU DOORZV LQVWDQW
VZLWFKLQJ RI PLFURSKRQHV WR GLIIHUHQW WUDQV
0)- 0)- .,< FHLYHUV 8VH 377 IRRWVZLWFK KHDGVHWERRP
)LOWHUV$&OLQH5),VXUJHVQRLVHWUDQVLHQWVKDVK 3URIHVVLRQDOERRPPLFKHDGSKRQHVIRU PLFSKRQHVVSHDNHUDXGLRLQMDFN
G%)RXU$9$&RXWOHWV FRQWHVWLQJ ';LQJ WUDIÀF QHWV &RPIRUW
DEOHSDGGLQJVHDOVRXWQRLVH)UHTXHQF\
WDLORUHGPLF$GMXVWDEOHERRP
.,660RGH71&
66%6SHHFK5HÀQHG

6SHDNHU
0)-
0)-;
0)- $ XQLYHUVDO VHOIFRQWDLQHG .,66 PRGH 71&
6SHHFK ,QWHOOLJLELOLW\ HQKDQFHU H[WUDRUGLQDLUH $Q WKDW ZRUNV ZLWK HYHU\ SDFNHW VRIWZDUH SUR
DPD]LQJ GLIIHUHQFH LQ XQGHUVWDQGDELOLW\ RI 66% 0)- &OHDU7RQH70 UHVWRUHV WKH EURDGFDVW JUDP WKDW VXSSRUWV .,66 PRGH 3HUIHFW IRU
VSHHFK 1R KLVVLQJ ULQJLQJ RU RWKHU VWUDQJH HI TXDOLW\ VRXQG RI VKRUWZDYH OLVWHQLQJ $356 )XOO\ FRPSDWLEOH ZLWK :LQ/LQN 
IHFWVPDNLQJDGUDPDWLFLPSURYHPHQW 0DNHVFRS\LQJHDVLHUHQKDQFHVVSHHFK :RUNV ZLWK :LQGRZV 0$& 26 ; DQG /LQX[
LPSURYHV LQWHOOLJLELOLW\ UHGXFHV QRLVH $FWLYH DXGLR ÀOWHU FOHDQV XS DQDORJ VLJQDOV
0)- KDV VHSDUDWH DGMXVWDEOH FKDQQHOV IRU VWDWLF KXP LQFK VSHDNHU KDQGOHV  6PDOO LQH[SHQVLYH ORZ SRZHU FRQVXPSWLRQ
HDFKHDU :DWWVRKPLPSHGDQFHIRRWFRUG H[SDQGDEOH

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


0,&523+21(6
7KH+HULWDJH
7KH)LQΠ++*
7KH)LQŒXWLOL]HVWKH35 7KH+HULWDJHLVDG\
+0;' HOHPHQWVRSRSXODULQ QDPLF PLFURSKRQH
WKHSURIHVVLRQDODXGLRUHDOP,W ZLWK D YLQWDJH
7KH +0 ;' IHDWXUHV RXU QHZ +& LVKRXVHGLQDJRUJHRXVKLJKJORVV FKURPHORRN,WXWLOL]HV
; DQG +&; HOHPHQWV 7KH QDUURZ FKURPHÀQLVK,ISKDQWRPSRZHU QRW WKH 35  HOHPHQW DQG
UHVSRQVH RI WKH +&; LV LGHDO IRU '; FRPSDWLEOH ZLWK ,FRP WUDQVFHLYHUV  KDV D ORFNDEOH RQRII
ZRUN DQG WKH IXOO UHVSRQVH RI WKH +& LV SURYLGHG WR 7KH )LQΠWKH EOXH VZLWFK ,W LV DYDLODEOH LQ
; LV JUHDW IRU HYHU\GD\ UDJ FKHZ ,W ZLQG VFUHHQ DOVR DYDLODEOH LQ UHG FKURPH RU EODFN PDWWH
FRPHVHTXLSSHGZLWKDPLFURSKRQHFOLS RUZKLWH EHFRPHVLOOXPLQDWHGE\HPEHGGHG ZLWK EOXH IRDP ZLQG
DQGDIRDPZLQGVFUHHQ&&DGDSWHU /('V1RZDOVRDYDLODEOHLQVDWLQEODFNZLWKUHG VFUHHQ+523ULFH&$//
UHTXLUHG+523ULFH&$// ZKLWHRUEOXH/('VIRDP&&;/5UHTXLUHG
+523ULFH&$//
+HLO35
+0 +DQGL0LFV 7KH35ZDVGHVLJQHGIRU
'HVLJQHGIRU+DPV +0L& FRPPHUFLDO EURDGFDVW OLYH
VRXQGDQGUHFRUGLQJ,WKDV
7KHKLJKRXWSXWIXOOUDQJH*HQHVLVG\ 7KH+DQGL0LFLVDQXOWUDFRPSDFW FRPSDUDEOHVRXQGWRWKHÀQ
QDPLFHOHPHQWLQWKH+0LVGHVLJQHG KDQGPLFURSKRQHXWLOL]LQJDVSH HVWFRQGHQVHUPLFURSKRQHV
WR ZRUN ZLWK MXVW DERXW HYHU\ DPDWHXU FLDOLQWHUQDOVKRFNPRXQW\LHOGLQJ EHFDXVHRILWVZLGHIUHTXHQF\
UDGLR ORZ LPSHGDQFH WUDQVPLWWHU 7KH VXSHULRU DXGLR FRPSDUHG WR WKH UHVSRQVHH[FHOOHQWWUDQVLHQW
HOHPHQWLVPRXQWHGLQDXQLTXHLQWHUQDO VWDQGDUG PLFURSKRQHV RIIHUHG UHVSRQVHDQGORZ,0'7KH
VKRFNPRXQWDQGH[KLELWVQHDUO\G% E\ WKH UDGLR PDQXIDFWXUHUV 7KH 35FRPHVVWDQGDUGZLWK
RI UHDU UHMHFWLRQ UHGXFLQJ EDFNJURXQG +DQGL0LFLVDYDLODEOHZLWKWKHL& WKH60µ;PRXQW$OO
DQGDPELHQWQRLVHIURPWKHWUDQVPLWWHG HOHPHQWGHVLJQHGIRU,FRPULJV$ WKH35VHULHVPLFURSKRQHV
VLJQDO 7KH VRIW WRXFK 377 VZLWFK LV VSHFLDO3URYHUVLRQLVDOVRDYDLO UHTXLUHD&&;/5FDEOHWR
ZLUHGWRSLQVDQGIRUWUDQVPLWWHUFRQWURO LQWHUIDFHZLWK\RXUWUDQVFHLYHU$YDLODEOHLQ
DEOH ZLWK D ZLGHUDQJH G\QDPLF
ZLWKWKHPLFURSKRQHVLJQDOIHGWRSLQV EODFNRUFKDPSDJQH+523ULFH&$//
HOHPHQWWKDWVRXQGVJUHDWRQ)0
DQGRIWKHSLQ;/57KH+HLO+0 PRELOHULJV+523ULFH&$//
XVHV+HLO&&FRQQHFWLQJFDEOHV7KLV +HLO35
PLFURSKRQH KDV D XQLTXH LQWHUQDO ZLQGVFUHHQ SOXV 0RGHO (OHPHQW 377
+0L& (OHFWUHWIRUPRVW,FRP <HV 7KH35ZDVGHVLJQHG
DQ H[WHUQDO IRDP ZLQGVFUHHQ ,W KDV WKH  ; 
+0352 :LGHUDQJHG\QDPLF <HV IRUFRPPHUFLDOEURDGFDVW
PLFURSKRQHFOLSGHVLJQHGIRURXUERRPVDQGVWDQGV
OLYH VRXQG DQG UHFRUG
)UHTXHQF\UHVSRQVH+]N+]#G%6DWLQ
LQJ ,W IHDWXUHV WKH +HLO
EODFNÀQLVK+523ULFH&$//
L&0,&0%* G\QDPLF HOHPHQW ZLWK D
SHUIHFWO\ IODW UHVSRQVH
35'35'3 6DOYDWLRQIRU IURP+]DOOWKHZD\XSWR
$YDLODEOHLQ%ODFNRU3XUSOH ,FRP8VHUV N+]DQGKDVJRUJHRXV
8VH WKLV SURIHVVLRQDO TXDOLW\ G\QDPLF $OVRDYDLODEOH DUWLFXODWLRQ7KH35LV
LQ%ODFNDQG*ROG VKLSSHGZLWKWKH60µ
PLFURSKRQHIRUFRPPHUFLDOEURDGFDVW
UHFRUGLQJ SRGFDVWV DQG DQ\ DSSOLFD ;PRXQWDQGDSDGGHG
7KHL&0LVDKLJKTXDOLW\ OHDWKHUHWWHFDUU\LQJFDVH
WLRQ WKDW UHTXLUHV D VPRRWK ÁDW UH PLFURSKRQHIRUHDUO\L&20
VSRQVH RYHU D ZLGH IUHTXHQF\ UDQJH DQGLVDYDLODEOHLQFKDPSDJQHFKURPH
WUDQVFHLYHUV WKDW FRPHV JROGDQGPDWWHEODFNZLWKJROGJULOOÀQLVK
H[FHOOHQW WUDQVLHQW UHVSRQVH JUHDW
LQDQDOOSODWLQXPFRORUHG $OOWKH35VHULHVPLFURSKRQHVUHTXLUHD
VSHHFK DUWLFXODWLRQ DQG ORZ ,0' :LWK
ÀQLVKRUDPDWWHEODFNZLWK &&;/5FDEOHWRLQWHUIDFHZLWK\RXU
UHDUUHMHFWLRQRIRYHUG%LWDOVRIHD
JROGJULOO,WIHDWXUHVDKLJK WUDQVFHLYHU+523ULFH&$//
WXUHVDWZRSRVLWLRQVZLWFKDOORZLQJWKH
VHOHFWLRQRIWKHEHVWFKDUDFWHULVWLFVIRU JDLQ FRQGHQVHU HOHPHQW
YRLFHRUPXVLF+523ULFH&$// WKDW SURYLGHV IXOOERGLHG
DXGLRZLWKSOHQW\RIGULYHWR
PDWFKXSZLWKWKHORZJDLQ
35
3535* DXGLRV\VWHPVRIWKHHDUOLHUL&20ULJV,WDOVR 0LF3DFNDJH
ZRUNVZHOOZLWKWKHKLJKHUJDLQ´3URµUDGLRVDQG 6PDOOLQVWDWXUHPLJKW\LQ
7KHVH SURIHVVLRQDO TXDOLW\ G\QDPLF ,&,WFRPHVZLWKDQDWWDFKHGVKLHOGHGҋ SHUIRUPDQFH WKH 35 
FDUGLRLGPLFURSKRQHVIRUDPDWHXUUDGLR FDEOHWHUPLQDWLQJLQDQSLQPLFSOXJDQGDµ FRPELQHVDGHVNVWDQG
SURYLGH D ZLGH IUHTXHQF\ UHVSRQVH 377SLJWDLO+523ULFH&$// ERRP DQG WKH ODW
JUHDWDUWLFXODWLRQDQGDG%RIUHDU HVW PLFURSKRQH
UHMHFWLRQZLWKDPSOHRXWSXWWRGULYHPRVW 3UR&RQQHFWRU&DEOHV RIIHULQJ IURP +HLO
DPDWHXUUDGLRPLFURSKRQHLQSXWV7KH 7KLVIWORQJFDEOHFRQQHFWV7KH)LQDQG35 6RXQG 7KH LQWH
35*LVVSHFLÀFDOO\GHVLJQHGIRUXVH 6HULHV PLFURSKRQHV WR \RXU SLQ .HQZRRG JUDWHGPLFH[KLELWVRXWVWDQGLQJVSHHFK
ZLWKPRVWPDNHVRI(OLWHWUDQVFHLYHUVE\ <DHVXRUL&20WUDQVFHLYHU0DGHZLWK+HLOZLUH DUWLFXODWLRQ ZLWK SHUIHFW EDODQFH RI
.HQZRRG)OH[(OHFUDIW<DHVX7HQ7HFDQG,FRP7KH WRKHOSUHGXFH5),DQGQRLVH3LJWDLOHDVLO\FRQ KLJKVDQGORZV:RUNVZHOORQPRVWDOO
35*LVWKHVDPHJUHDWGHVLJQDQGSHUIRUPDQFH QHFWVWR+6)6RU)6 WUDQVFHLYHUV5HTXLUHVD&&;/5VH
DVWKH35EXWQRZZLWKDEHDXWLIXOJROGVFUHHQ &&;/5%$/ )7)7G[  ULHV FDEOH WR LQWHUIDFH ZLWK \RXU WUDQV
%RWK PRGHOV FRPH ZLWK WKH 60 PRXQW 35 &&;/5, ,FRPFDEOH  FHLYHU$OVRDYDLODEOHDVWKH355HG
+523ULFH&$//35*+523ULFH&$// &&;/5. .HQZRRGFDEOH  ZLWKWKH/%5+523ULFH&$//

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


0,&523+21($&&(6625,(6
0RXQWV %RRPV
60 ,OOXPLQDWHG%DVHV
6KRFN0RXQW
PLFURSKRQHQRWLQFOXGHG /%5 3/7
7KHXOWLPDWHVXVSHQVLRQPRXQW 5HGÀQLVK 6WXGLR%RRP
IRU\RXU+HLOKDQG 7KH3/7´7RSOHVVµERRPLVDXQLTXH
ZLWK DUWLFXODWHG ERRP WKDW OHWV \RX WXFN
P L F U R S K R Q H V 
7 K L V  V K R F N
ZKLWHOLJKW \RXU PLFURSKRQH FDEOH DZD\ IRU D
PRXQWFDQEHXVHG SURIHVVLRQDODSSHDUDQFH,WDFFHSWV
RQDOO+HLOVWDQGVRUERRPV DOO+HLO6RXQGµ[WKUHDGLQJPL
ZLWKµ[VWDQGDUGWKUHDGVµ+523ULFH /%% FURSKRQHPRXQWLQJFOLSV,QFOXGHV
%ODFNÀQLVK D&&ODPS,WFDQVXSSRUWDWRWDO
3560 ZLWK ZHLJKWRIOEV
6KRFN0RXQW +523ULFH
EOXHOLJKW
7KLV IOH[LEOH VXSSRUW
7KLV FRP
6%
V\VWHP KHOSV VXSSUHVV
ORZIUHTXHQF\ UXPEOH +HLO 6RXQGҋV IXQ OLJKW XS EDVHV KDYH DQ SDFW DGMXVW 6PDOO%RRP
E\ GDPSHQLQJ YLEUD RYHUVL]HG377ZLWKWKH+HLOORJRDQG/(' DEOH ERRP DF
WLRQV 7KH 3560 ILWV OLJKWV WKDW FDQ EH LOOXPLQDWHG LQ  GLIIHU FHSWVVWDQGDUG[
ODUJHGLDPHWHU PLFUR HQW ZD\V ,W KDV VWDQGDUG µ EUDVV WKUHDGLQJDQGFRPHV
SKRQHV LQFOXGLQJ WKH WKUHDGLQJ WR ZRUN ZLWK DQ\ +HLO 6RXQG ZLWKD&&ODPS,WLVFRPSDW
35  DQG FDQ PLFURSKRQH DFFHVVRULHV 7KLV ZHLJKWHG LEOHZLWKDOO+HLO6RXQGKDUG
EHXVHGRQDOOERRPVRUVWDQGVZLWKWKUHDGLQJ EDVHIHDWXUHVDKLJKVWUHQJWKSODVWLFFRY ZDUH+523ULFH
3560%EODFNÀQLVK+523ULFH&$// HULQJDQGJUHDWORRNV+523ULFH&$//
3560&FKDPSDLJQÀQLVK+523ULFH&$// +%
&%377 (FRQRP\0LFURSKRQH%RRP
6ZLWFKHV &ODVVLF%DVH
7KLVEHDXWLIXOUHSURGXFWLRQRI
+6 D5&$PLFURSKRQH
7KH+%LVDQDUWLFXODWHGERRPEDODQFHG
E\ IRXU H[WHUQDO VSULQJV ,W LV FDSDEOH
377+DQG6ZLWFK EDVH KDV VWDLQOHVV
RI VXSSRUWLQJ PLFURSKRQHV ZHLJKLQJ
+HLO
V KLJK TXDOLW\ KDQG VZLWFK WULPDQGIHDWXUHV
XS WR  OEV DQG DQ\ VWDQGDUG 
PDGH IRU 377 RSHUDWLRQ LV D 377 ZLWK D µ
[  WKUHDGHG PLFURSKRQH
VKDSHGWRÀW\RXUKDQGQDWXUDOO\ ULVHUWKDWDFFHSWV
KDUGZDUH 7KH +% LV
DQGFRPIRUWDEO\&RPHVZLWKD µ[KDUGZDUH
VKLSSHG ZLWK D &&ODPS
IRRWFDEOHWKDWSOXJVLQWRWKH$' +523ULFH
PRXQWWKDWDFFHSWVXSWR
RU&&DGDSWHU+523ULFH DµWKLFNFDEOHDQGLV
FRPSDWLEOHZLWKDOO+HLO
)/ 6RXQGKDUGZDUH
)ODQJH0RXQW +523ULFH
)6
:LWK EUDVV LQVHUW
6LQJOH&LUFXLW )LWVWKH3/76%
56
)RRWVZLWFK +%
5LVHU
8VH WKH )6 WR FRQWURO WKH +523ULFH 7KLVµULVHUDOORZV\RXWRPRXQWDQ\
WUDQVPLWIXQFWLRQRI\RXUDPDWHXU +HLO 6RXQG ERRP EHKLQG \RXU WUDQV
UDGLR$IRRWVKLHOGHGFDEOHLVWHUPLQDWHGZLWKD FHLYHURUFRQVROH+523ULFH
'7
FRPPHUFLDOSOXJWKDWFRQQHFWVLQWRWKH+HLO&& 'HVNWRS)OXVK
DQG$'FDEOHV\VWHP+523ULFH
0RXQW :LUHOHVV$GDSWRU
)6'XDO)RRWVZLWFK $OORZV 3/7 6% DQG +%$
+%WRVOLSLQWRKROH
7KLVXQLTXHGX GULOOHGLQWRGHVNWRS+52 :LUHOHVV&RQQHFWRU
DODFWLRQ IRRW 3ULFH
:H EULQJ WR \RX D SDLU RI
VZLWFKSURYLGHV
:0 VLPSOHZLUHOHVVGHYLFHV
WZRVHTXHQFHG RQH FRQQHFWLQJ LQWR
PLFURVZLWFKHV 9HUWLFDO
DQ\ RI RXU  SLQ
RQH HDFK IRU FRQQHF 6XUIDFH EDODQFHG ;/5
WLRQWR\RXUWUDQVPLWWHUDQG 0RXQW P L F U R S K R Q H V
\RXUOLQHDUDPSOLÀHUZKHQ\RXSUHVVGRZQRQWKH 7KH :0 LV D 353535HWF DQGWKHUHFHLYHU
IRRWVZLWFKWKHDPSOLÀHUҋVVZLWFKLVHQJDJHGÀUVW XQLTXH PRXQW IRU FRQQHFWHGWRWKHPLFURSKRQHLQSXWRIDQ\+HLO
IROORZHG LPPHGLDWHO\ E\ WKH VZLWFK IRU WKH UDGLR WKH+HLOERRPVWKDW $' KHDGSKRQH DGDSWHU ,W KDV D UDQJH RI
DQGZKHQ\RXOHWXSWKHUHYHUVHVHTXHQFLQJWDNHV DOORZV WKHP WR EH PRXQWHG RQ D YHUWLFDO DERXWҋ7KHVWDWLRQV\RXZRUNFDQQRWWHOO
SODFH 7KLV SURYLGHV VDIH 75 VZLWFKLQJ IRU ERWK VXUIDFH 7KH EUDVV LQVHUW RI WKH :0 WKDW\RXDUHXVLQJDZLUHOHVVDGDSWHULQVWHDG
UDGLRDQGDPSOLÀHUZLWKRXWQHHGIRUDFRQWUROFDEOH HQVXUHVVPRRWKSHUIHFWÀWZLWK3/7DQG RIDZLUHGPLFFDEOH$377LVUHTXLUHG
EHWZHHQWKHWZRXQLWV+523ULFH +%+523ULFH +523ULFH&$//

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


+($'6(76
/LJKWZHLJKW+HDGVHWV
3UR6HW
(OLWH +DQGLH7DONLH+HDGVHW
6LQJOHVLGHGRU'XDOVLGHG
7KHVH+7+VLQJOHVLGHGDQG+7+'GXDOVLGHGOLJKW
ZHLJKWKHDGVHWVDUHGHVLJQHGIRUXVHZLWKSRSXODU
KDQGKHOGWUDQVFHLYHUVIHDWXULQJDQLQOLQH377

6LQJOH +7+ RU'XDOVLGHG +7+' 0RGHOV


7KH UHGHVLJQHG 3UR 6HW (OLWH +523ULFH&$//
IHDWXUHV LPSURYHG FRPIRUW DQG
GXUDELOLW\ ,W RIIHUV GXDO VLGH +7+.+7+'.:RUNVZLWKSLQ.HQ
KLJKO\ HIÀFLHQW VSHDNHUV PRXQW ZRRG%DRIHQJDQG:RX[XQ
HG LQ DFRXVWLFDOO\ WXQHG FKDP +7+L+7+'L:RUNVZLWKSLQ,FRP
EHUV ZKLFK RIIHU KLJK UHMHFWLRQ
3UR6WHUHR RI RXWVLGH QRLVH 7KH KHDGVHW
+7+<+7+'< :RUNVZLWK7556<DHVX9HUWH[
)RUZHDWKHUUHVLVWDQW<DHVX9HUWH[XVHWKH
7KH3URIHDWXUHVDQDXGLREDO IROGVIRUHDV\WUDQVSRUWDQGVWRU +7+<DQG+7+$'<DGDSWHU
DQFHFRQWURODOORZLQJWKHXVHUWR DJH ,W FRPHV LQ WZR PRGHOV
DGMXVW OHYHOV EHWZHHQ VSHDNHUV 7KH 3UR 6HW (OLWH FRQWDLQV WKH
,W DOVR IHDWXUH WKH +HLO 6RXQG +HLO+&IXOOUDQJHG\QDPLFPL %0
3KDVH 5HYHUVDO 6ZLWFK ZKLFK FURSKRQH HOHPHQW DQG WKH 3UR 7KH %0 KHDGVHW LV D OLJKWZHLJKW RQO\
DOORZVWKHXVHUWR´PRYHµWKHLQ 6HW (OLWHL& FRQWDLQV WKH +HLO  R]  DUWLFXODWH ERRPVHW WKDW LV LGHDO IRU
FRPLQJVLJQDOWRVLJQLÀFDQWO\LP L& HOHFWUHW PLFURSKRQH HOHPHQW ';SHGLWLRQV PRELOH DQG JHQHUDO UDJ
SURYHFRS\LQDWRXJK';SLOHXS VSHFLÀFDOO\ GHVLJQHG IRU L&20 FKHZLQJ7KHVSHDNHUVDUHH[WUHPHO\VHQ
7KHPLFERRPFDQEHURWDWHGIRU +523ULFH&$// VLWLYHDQGGRQҋWUHTXLUHPXFK$)GULYHIURP
XVHRQHLWKHUWKHULJKWRUOHIWHDU WKH WUDQVFHLYHU 7KH IUHTXHQF\ UHVSRQVH LV
7KH 3UR  LV DYDLODEOH LQ EODFN +]N+]ZLWKYHU\ORZGLVWRUWLRQ7KH
UHGDQGEOXH,WFDQEHRXWÀWWHG HDUSDGVDUHUHSODFHDEOHDFRXVWLFIRDP7KH
ZLWK WKH +& G\QDPLF HOHPHQW 3UR %0FRPHVLQWZRYHUVLRQVD%0'\
RUWKHL&HOHFWUHWHOHPHQWWKH+& 6HWV QDPLFDQGD%0L& HOHFWUHW WRDFFRP
 (OHPHQW IRU '; LV DYDLODEOH PRGDWH PDQ\ UDGLRV RQ WKH PDUNHW WRGD\
VHSDUDWHO\ &RPSDWLEOH ZLWK FXU $GFDEOHUHTXLUHG+523ULFH&DOO
UHQW$'VHULHVDGDSWHUFDEOHV
+523ULFH&$// %0
7KH %0 LV D QHZ OLJKWZHLJKW KHDGVHW
GHVLJQHG IRU HPHUJHQF\ FRPPXQLFDWLRQV
3UR 6HWV DUH OLJKWZHLJKW YHUVD DYDLODEOHDVHLWKHUDVLQJOHVLGHRUGXDOVLGH
WLOHERRPVHWVZLWKWKH+HLO6RXQG PRGHOZLWKHLWKHUD%0'\QDPLFHOHPHQW
3KDVH5HYHUVDO6ZLWFKDOORZLQJ RUD%0L&(OHFWUHWHOHPHQW
WKH XVHU WR ´PRYHµ WKH LQFRPLQJ %0'\QDPLF'XDO+523ULFH&$//
VLJQDO WR VLJQLÀFDQWO\ LPSURYH %0'\QDPLF6LQJOH+523ULFH&$//
FRS\LQWRXJK';SLOHXSV %0,&20'XDO+523ULFH&$//
3UR6HW0HGLD3URIRUFRPSXWHU %0,&206LQJOH+523ULFH&$//
KDV D KLJKOHYHO FRQGHQVHU HOH
3UR6HW PHQW DQG WZR µ SOXJV IRU DS
SOLFDWLRQVUHTXLULQJFRQQHFWLRQRI
6WHUHR+HDGSKRQHV DKHDGVHWERRPPLFWRDFRP
3UR 6HW  VWHUHR KHDGSKRQHV SXWHUҋVVRXQGFDUG
3UR0LFUR30'
DUH SURIHVVLRQDO DQG OLJKWZHLJKW 'XDOVLGHG
3UR6HWIRUFRPPHUFLDOEURDG
GHVLJQHG IRU PXVLF UHGRUGLQJV 7KHOLJKWZHLJKW3UR0LFURKHDGVHWVDUHGHVLJQHGIRU
FDVW DSSOLFDWLRQV XWLOL]HV WKH
LQWHUQHW FRPPHUFLDO UDGLR DQG FRPPHUFLDOEURDGFDVWDSSOLFDWLRQV7KH\DUHDYDLODEOH
+&G\QDPLFHOHPHQW5HTXLUHV
KDP UDGLR7KH\ VKLS ZLWK  GH LQVLQJOHVLGHGRUGXDOVLGHGPRGHOV+523ULFH&DOO
$'DGDSWHU
WDFKDEOHFDEOHVD0ÁH[LEOH
3UR6HWL&ZLWKHOHFWUHWFRQGHQV 3UR 0LFUR  LV HTXLSSHG ZLWK +& HOHPHQW
VWUDLJKW FDEOH D  0 VWUDLJKW
HU GHVLJQHG IRU ORZ PLF LQSXWV $'DGDSWHUUHTXLUHG 
FDEOH ZLWK PP SOXJ DQG D 
0FRLOHGFDEOH$OOFDEOHVIHDWXUH XVHG RQ PDQ\ L&20 WUDQVFHLY 3UR 0LFUR L& KDV DQ
D WZLVW ORFN WHUPLQDWLQJ LQ D µ HUV7KHL&UHTXLUHVYROWVRI'& HOHFWUHW FRQGHQVHU GH
PP SURIHVVLRQDOJROGSODWHG SKDQWRP SRZHU SURYLGHG E\ DOO VLJQHG IRUORZ PLF LQSXWV XVHG RQ PDQ\ ,FRP
VFUHZRQ µ PP  DGDSWHU ,FRP ULJV  DQG LQFOXGHV$' L& WUDQVFHLYHUV 7KH L& UHTXLUHV  YROWV RI '&
7KH 3UR 6HW  IHDWXUHV WKH +HLO DGDSWHU SKDQWRPSRZHU SURYLGHGE\DOO,FRPULJV DQG
6RXQG 3KDVH 5HYHUVDO 6ZLWFK LQFOXGHVDQ$'L&DGDSWHU
ZKLFK DOORZV WKH XVHU WR ´PRYHµ 3UR6HW$FFHVVRULHV
WKHLQFRPLQJVLJQDOWRVLJQLÀFDQW %$*  /HDWKHUHWWH WUDYHO EDJ
O\ LPSURYH FRS\ LQ D WRXJK '; IRUDOO+HLO6RXQGKHDGVHWV+52 3UR0LFUR306
SLOHXS+523ULFH&$// 3ULFH 6LQJOHVLGHG
 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  
.(<6 3$''/(6

7KHKLJKTXDOLW\%HQFKHUSURGXFWOLQHLV
+DQGKHOG0LFURSKRQH QRZSDUWRIWKHROGHVWQDPHLQ
+DP5DGLR9LEURSOH[
+00'\Q+00L&
5-6HULHV+DQG.H\V
7KH5-KDQGNH\VKDYHDQDGYDQFHG$PHULFDQVW\OH
GHVLJQGHULYHGIURPWKHWHOHJUDSKNH\VWKDWZRQWKH
ZHVW\HWZLWKPRGHUQIHDWXUHVOLNH2LOLWHEHDULQJVDVROLGQDY\NQREJROGSODWHG
7KH+00EULQJVQHZ VROLGVLOYHUFRQWDFWVIXOOORFNLQJDGMXVWPHQWVRIDOOWHQVLRQDQGVSDFLQJSDUDP
WHFKQRORJ\ WR WKH KDQG HWHUV DQG %HQFKHU TXDOLW\ PDWHULDOV WKURXJKRXW7KHVH NH\V DUH LGHDO IRU WKH
PLFURSKRQH :KHQ \RX QHZDPDWHXUMXVWPDVWHULQJFRGHDVZHOODVWKHROGWLPHEUDVVSRXQGHUDQ[LRXV
SODFH D PLFURSKRQH HOH WRFOHDUWKHKRRN7KLVNH\RIIHUVWKH0RUVHFRGHRSHUDWRUDQLQYHVWPHQWWKDW
PHQW LQVLGH D FODP VKHOO ZLOOEULQJ\HDUVRISULGHDQGVDWLVIDFWLRQ7U\WKH%HQFKHU5-KDQGNH\DW\RXU
WKH UHVXOW LV D KROORZ PXIÁHG QHDUE\+52<RXZLOOEHFRQYLQFHGWKHUHLVQREHWWHUNH\DYDLODEOH+523ULFHV
VRXQG 7R VROYH WKLV SUREOHP ZH LQVWDOOHG D JULOO RQ 5-%ODFN5-&KURPH
WKH WRS RI WKH PLFURSKRQH WKDW GHWXQHV WKH LQWHUQDO
UHVRQDQFH RI WKH KRXVLQJ :H FDPH XS ZLWK D YHU\
VSHFLDO IXOOUDQJH PLFURSKRQH HOHPHQW ZLWK JUHDW
VSHHFKDUWLFXODWLRQ$YHU\ÁH[LEOHEXWVWXUG\FRLOFD
EOHWHUPLQDWHVZLWKµPDOHIRUWKHPLFURSKRQHDQG
DõµPDOHIRUWKH377FRQWURO++0'\Q '\QDPLF 
2LU[ 3DGGOHV
²+523ULFH&$//
+H[.H\
$OVRRIIHUHGZLWKWKHL&HOHFWUHWHOHPHQWDV++0L&
$'FDEOHUHTXLUHG++0L&²+523ULFH&$// *ROG SODWHG VLOYHU FRQWDFWV 0ROGHG
DFU\OLFÀQJHUSDGGOHV3ROLVKHGFKUR
PLXPSDUWV0DJQHWLFWHQVLRQDGMXVW .HQW SDGGOHV
$XGLR3URFHVVRU PHQWDQGDGMXVWDEOHFRQWDFWVSDFLQJ RIIHU D VPRRWK
%ODFNSRZGHUFRDWHGVWHHOEDVH IHHOZLWKVHDOHGEDOO
+523ULFH EHDULQJV
676HULHV
6LQJOH/HYHU3DGGOHV
3DUDPHWULF 6XSHUE%HQFKHUIHDWXUHVDQGFRQVWUXF
WLRQIRUWKHKDPZKRSUHIHUVVLQJOHOHYHU
5HFHLYH$XGLR6\VWHP RSHUDWLRQ
35$635$6(4  +523ULFHV
7KH+HLO3DUDPHWULF5HFHLYH$XGLR6\VWHP(TXDO  67 %ODFN 
L]HU 35$6(4 LVDVWDWHRIWKHDUWDXGLRSURFHVVRU  67 &KURPH  3UHFLVHJDSDGMXVWPHQWVZLWKNQXUOHG
WKDWHQKDQFHVWKHLQWHUQDODXGLRV\VWHPVRIDPDWHXU KHDGVRQÀQHSLWFKHGVFUHZVDQGORFN
UDGLRVKRUWZDYHFRPPHUFLDODQG&%UHFHLYHUV7KH LQJQXWV0DGHIURPVROLGEUDVVZLWKLQ
35$6 (4 DOORZV UDGLR RSHUDWRUV WR PRGLI\ VKDSH DSHUPDQHQWEUDVVKRXVLQJ
DQGLPSURYHWKHDXGLRRXWSXWRIWKHLUUHFHLYHUVXVLQJ
WKUHHVHSDUDWHHTXDOL]DWLRQFRQWUROV  7ZLQ3DGGOH 73  
 6LQJOH3DGGOH 63  

3RZHUHG6SHDNHU
+36
%<6HULHV
7KH +HLO 3RZHUHG 6SHDNHU
+36  LV D WZRZD\ SRZ
,DPELF3DGGOHV
HUHG VSHDNHU GHVLJQHG WR EH <RX ZLOO HQMR\ WKH VPRRWK SUHFLVH
XVHG ZLWK WKH 35$6 7RJHWK DFWLRQ RI D %HQFKHU SDGGOH ZLWK DQ\ 6WUDLJKW.H\
HU WKH\ SURYLGH XQPDWFKHG LDPELF NH\HU 7KHVH SDGGOHV IHDWXUH  6WUDLJKW.H\ 6.  
VSHHFK DUWLFXODWLRQ DQG EULQJ DKHDY\VWHHOEDVHJROGSODWHGVLOYHU
QHZGLPHQVLRQVWRUHFHLYHDXGLRTXDOLW\7KH+36 FRQWDFWSRLQWVQRQVNLGIHHWVWDLQOHVV
SRZHUHGVSHDNHUIHDWXUHVDµGULYHUDQGD:DWW VWHHODGMXVWDEOHVSULQJVHOIDGMXVWLQJ
DPSOLÀHU7KH35$6DQG+36FRPHZLWKDQ;/5WR
;/5FDEOHYROW<3RZHU6XSSO\µWRµVWHUHR
QHHGOH EHDULQJV DQG ODUJH DFU\OLF
ÀQJHUSDGGOHV
&DOO+52IRU
VRXUFHFDEOHDQGµWRµVWHUHRDGDSWHU  +523ULFHV 4XRWHV 6SHFLDOV
+523ULFHV35$6  %< %ODFN 
35$6(4+26  %< &KURPH 

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


.(<(56 .(<6
4XDOLW\DQG3ULGH7KURXJKRXW
´9LEURNH\HUµ ´9LEURFXEH
7KH 9LEURNH\HU LV GHVLJQHG IRU
WKRVH ZKR SUHIHU D QRQLDPELF
SDGGOH 7KH VLQJOH OHYHU SDGGOH
LPLWDWHV WKH DXWRPDWLF GRWV DQG
GDVKHVRIWKHHOHFWURQLFNH\HUZLWK
WKHVDPHPRWLRQXVHGWRRSHUDWH
WKH%XJ
9LEURNH\HU'HOX[H+LJKO\SROLVKHGGHFR
UDWLYHFKURPHEDVHZLWKEULJKWFKURPHWRSSDUWV 7KH9LEURFXEHUHJLVWHUVMXVWXQGHUSRXQGVRQ
6LON\ VPRRWK PRYHPHQWV DUH MHZHOHG DV LQ ÀQH WKHVFDOH,WLVDODUJHSDGGOHWKDWVWD\VLQSODFH
6ZLVVZDWFKHV+523ULFH RQ WKH GHVN DQG DFFRPRGDWHV D ODUJH KDQG
9LEURNH\HU6WDQGDUG$QHDWFULVSEODFNWH[WXUHGÀQLVKEDVHZLWKEULJKWGHFRUD FRPIRUWDEO\7KHEDVHLV86$IRUJHGFROGUROOHG
WLYHFKURPHSDUWV1RQMHZHOHGPRYHPHQW+523ULFH VWHHO XSSHU FRPSRQHQWV DUH ]LQF VWHHO DQG
EUDVV 7KH ÀQJHU SLHFHV DUH KDUG UHG DFU\OLF
,QVWHDGRIPDJQHWLFWHQVLRQLQJZHXVHDVSULQJ
ORDGHGPHWKRGZKLFKSURYLGHVDJUHDWHUUDQJH
´2ULJLQDOµ RISRVVLEOHWHQVLRQVHWWLQJVWKDQPDJQHWVDOORZ
7KH 2ULJLQDO 9LEURSOH[ LV D JHQXLQH 9LEURFXEH6WDQGDUG+523ULFH
SLHFHRIKLVWRU\)LUVWSDWHQWHGLQ
9LEURFXEH 'HOX[H /LNH WKH 6WDQGDUG YHUVLRQ
WKH2ULJLQDOLVVWLOOPDQXIDFWXUHGWRGD\
ZLWKMHZHOHGXSSHUDQGORZHUWUXQLRQVFUHZVDQ
XVLQJWRROVDQGGLHVYHU\VLPLODUWRWKRVH
DOOFKURPHEDVHDQGDOOFKURPHWRSFRPSRQHQWV
XVHGE\LWVLQYHQWRU+RUDFH*0DUWLQ
+523ULFH
0RGHUQGD\RSHUDWRUVFDQSXW
WKHLUÀVWWRWKHVDPHHTXLS
PHQWDVWKH:HVWHUQ8QLRQ ´&RGH:DUULRU
DQGUDLOURDGRSHUDWRUVRIROG
-Uµ
2ULJLQDO 'HOX[H SLFWXUHG
+523ULFH

´,DPELFµ
7KLV LV WKH PRGHUQ GHVFHQGDQW RI WKH
2ULJLQDO,WLQFRUSRUDWHVWKHWUDGLWLRQDO
9LEURSOH[ORRNIRUXVHZLWKPRGHUQ
HOHFWURQLFNH\HUV
7KH&RGH:DUULRU-ULVDVPDOOIRRWSULQWVWHHO
,DPELF 'HOX[H 6DPH DV EDVHNH\ZLWKEUDVVWRSSDUWVDQGVLOYHUWLSSHG
3UHVHQWDWLRQ EXW ZLWKRXW WKH FRSSHUFRQWDFWV3UDFWLFDOIRUKRPHRUSRUWDEOH
. JROG SODWHG EUDVV SODWH XVH 0DJQHWLF UHWXUQ DFWLRQ IRU ZLGH UDQJH RI
+523ULFH WHQVLRQ DGMXVWPHQW  :HLJKV MXVW  OE  R]
,DPELF6WDQGDUG$QHDWFULVSEODFNWH[WXUHG %XGJHWSULFHG$YDLODEOHZLWKEODFNRUEOXHEDVH
ÀQLVKEDVHZLWKEULJKWGHFRUDWLYHFKURPHWRSSDUWV &RGH:DUULRU-U+523ULFH
+523ULFH

´6WUDLJKW.H\V ´&KURPH
:DUULRU-Uµ
9LEURSOH[ŠRIIHUVD675$,*+7NH\ZLWKDXQLTXHPH
FKDQLFDODFWLRQXQOLNHDQ\RWKHUVWUDLJKWNH\WKDW
KDVHYHUEHHQPDQXIDFWXUHG
6WUDLJKW.H\'HOX[H+LJKO\SROLVKHG
FKURPH EDVH ZLWK GHFRUDWLYH
FKURPH WRS SDUWV +52
3ULFH
6WUDLJKW.H\6WDQ
GDUG$ QHDW FULVS
EODFN WH[WXUHG ÀQ 7KH&KURPH:DUULRU-ULVLGHQWLFDOWRWKH&RGH
LVKEDVHZLWKEULJKW :DUULRU -U EXW KDV D GHFRUDWLYH EULJKW FKURPH
FKURPH WRS SDUWV SROLVKHGVWHHOEDVH
+523ULFH &KURPH:DUULRU-U+523ULFH

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


0256(5($'(56 .(<6
.H\HUV ,DPELF3DGGOHV.H\V
0RUVH3UDFWLFH

0)-%
0)- $ PLFURSURFHVVRUFRQWUROOHG YRLFH 0)-&KURPH
7KH ZRUOGҋV ÀQHVW FRGH SUDFWLFH RVFLOODWRU LV GH NH\HU WKDW VHQGV \RXU FDOO DQG GRHV 0)-%%ODFN
VLJQHG IRU GHPDQGLQJ FODVVURRP XVH DQG DEXVH FRQWHVWH[FKDQJHVLQ\RXURZQQDWXUDO &KURPH ,DPELF SDGGOH IHDWXUHV D IXOO UDQJH RI
,WSURGXFHVDWUXHSXUHVLQHZDYHVLGHWRQHZLWKQR YRLFH 6WRUH IUHTXHQWO\ XVHG SKUDVHV DGMXVWPHQWV LQ WHQVLRQ DQG FRQWDFW VSDFLQJ
WUDFH RI KDUVK NH\ FOLFNV<RXҋOO KHDU WKH FOHDUHVW UHSHDW PHVVDJHV FRQWLQXRXVO\ XVH VHOIDGMXVWLQJQ\ORQDQGVWHHOEHDULQJVFRQWDFW
VZHHWHVWVRXQGLQJ&:\RXKDYHHYHUKHDUG'HOLY SLQ PRGXODU RU SLQ URXQG PLFUR SRLQWV WKDW DOPRVW QHYHU QHHG FOHDQLQJ SUHFL
HUVIXOO:DWWLQWREXLOWLQµVSHDNHU²ÀOOVDQHQWLUH SKRQHSOXJ5HFRUGDQGSOD\EDFNRII VLRQPDFKLQHIUDPHDQGQRQVNLGIHHWRQKHDY\
URRP/RZGLVWRUWLRQ²OHVVWKDQWRWDOKDUPRQLF DLUVLJQDOV+523ULFH EDVH+523ULFHHDFK
GLVWRUWLRQIURPLWV%7/ %ULGJH7LHG/RDG DPSOLÀHU
9ROXPH FRQWURO  +] WRQH FRQWURO RQRII
VZLWFK SRZHU RQ /('  LQFK NH\ MDFN PP
H[WHUQDO VSHDNHU MDFN XVHV  9'&$OO PHWDO HQ
FORVXUH+523ULFH

0)-
.H\HU  5HDGHU 7KH\ ZRQҋW NQRZ \RX
QHYHU SDVVHG WKH FRGH WHVW 6HQGV 
UHDGV:30$XWRVSHHGWUDFNLQJ
OLQH /&' 8VH SDGGOH RU NH\ERDUG
(DV\ PHQX RSHUDWLRQ )URQW SDQHO 0)-
VSHHG YROXPH  FRQWUROV +52 3ULFH 0LQLDWXUHOLJKWZHLJKW,DPELFSDGGOHÀWVLQWRDQ
0RUVH5HDGHU  $OWRLGŠWLQ3UHFLVLRQIRUPHGSHUIHFWIRUWUDYHO
0)- LQJ+523ULFH
'HFRGHV DQG GLVSOD\V 0RUVH FRGH RQ WZROLQH
KLJKFRQWUDVW/&'-XVWKROGFORVHWRUHFHLYHU
:308VH9QRWLQFOXGHG+523ULFH 6WUDLJKW.H\

0)-
7KH 0)- 0HPRU\ .H\HU LV D IXOO
0RUVH IHDWXUHGPHPRU\NH\HUFRPELQLQJGXDO
PLFURSURFHVVRUVDQGDQRQYRODWLOH((
7XWRU 3520FKLSIRUDIXOOIHDWXUHGORZFRVW
0)- KLJKUHOLDELOLW\GHVLJQ8QOLNHRWKHUNH\
0RUVH &RGH 7XWRU KDV DOO RI WKH SUDFWLFH \RX ZLOO HUVLWXVHVD/&'GLVSOD\WRVHWNH\HU
HYHUQHHGEXLOWLQWRDPLFURSURFHVVRU:RUNIURP IXQFWLRQV DQG VKRZ WKH VHQGLQJ PHV
D EHJLQQHU WR PDVWHU  :30 8VH 9 QRW LQ VDJH 7KH 0)- NH\V &: IURP D 0)-
FOXGHG+523ULFH SDGGOH D NH\ERDUG DQG D VHULDO FRP 'HOX[H ZRRG EDVH IHDWXUHV D 0RUVH
SXWHU LQWHUIDFH $OO FRGH SDUDPHWHUV FRGH VWUDLJKW NH\ RQ D QRQVNLG EHDXWLIXOO\
DUHFKDQJHGZLWKDQHDV\WRXVHPHQX VWDLQHGZRRGEDVH$VWHHOXQGHUSODWHGERWWRP
LQWHUIDFH VKRZQ RQ WKH /&' GLVSOD\ PDNHV LW VWD\ RQ \RXU WDEOH ҋ FDEOH ZLWK 
+523ULFH PPSOXJ+DQGVRPH+523ULFH

+DP5DGLR2XWOHWFDUULHV
&RGH2VFLOODWRU PDQ\PRUH0)-LWHPVZKLFKFDQEHIRXQG
0)- WKURXJKRXWWKLVFDWDORJDQGRQRXUZHEVLWHDW
3UDFWLFHVHQGLQJ0RUVHFRGH7HOHJUDSKNH\FRGH
RVFLOODWRU VSHDNHU RQ KHDY\ QRQVNLG VWHHO EDVH
9ROXPHWRQHFRQWUROV8VH9EDWWHU\+523ULFH
ZZZKDPUDGLRFRP


0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


6:5:$770(7(56
'XPP\/RDGV
0)- 0)-
/LJKWHG&URVV1HHGOH6:5:DWWV
453:DWWPHWHU 0)-% 0+])ZG5HI
9+) 6:5 :DWWPHWHU    0+] )HDWXUHVVHSDUDWH+)DQG9+)8+)GL
'XPP\/RDG EXLOWLQ ÀHOG VWUHQJWK PHWHU )ZG  UHI UHFWLRQDOFRXSOHUVWRFRQQHFWDQGPRQLWRU
SRZHULQWZR:UDQJHV VHSDUDWH +) DQG 9+)8+) WUDQVFHLYHUV
453 :DWWPHWHU  'XP VLPXOWDQHRXVO\
P\ /RDG ULJ SURWHFWLRQ
FLUFXLW+DQGOHV:DWWV 0)-
:[+['LQFKHV &RYHUV 
0+]  RU 
0)- :DWWV &URVVQHH
GOH 6:5  :DWW
6:5:DWWPHWHU PHWHUIRU+)9+)
'XPP\/RDG 0)-' DQG 9+)  8+)
'U\ 'XPP\ /RDG  6:5 /LJKWHGLQFKFURVVQHHGOHPHWHU 0)-  UHDG IRUZDUG  UHÁHFWHG SRZHU
 :DWWPHWHU FRPELQDWLRQ 0+]:IZG: DQG 6:5 VLPXOWDQHRXVO\ RQ WKH KXJH µ
7KUHHLQFK FURVVQHHGOH UHI7UXHSHDN PHWHU3HUIHFWIRUPRELOHRUSRUWDEOHRSHU
6:5PHWHU:DWWGU\ DWLRQ7ZRVHOHFWDEOHSRZHUUDQJHVEXLOW
ORDGWR0+]3HUIR LQPHWHUOLJKW 9'& 62FRQQHF
UDWHGPHWDO
*LDQWV WRUV:[+['LQFKHV

0)-
+)9+)GU\GXPP\ORDG 0)-
FRYHUVXSWR0+]XV
DEOH WR  0+]  5DWHG
 N: IRU WHQ VHFRQGV 0)-
 :DWWV FRQWLQXRXV
3HUIRUDWHG PHWDO FDELQHW 0)- 0)-
62 3HDNUHDGLQJJLDQWLQFKFURVVQHH
GOH6:5:DWWPHWHU:
UDQJHV6XSHUEULJKW/('EDFNOLJKW'&
JURXQGHG DQWHQQD FRQQHFWLRQV 62
FRQQHFWRUV:[+['
0)-
0)-& &RYHUV      0+]   
:DWWVIRUZDUG:DWWVUHÁHFWHGUDQJ
+)9+)'U\/RDGLVVLPLODU HV:[+['LQFKHV+DV
WR0)-EXWKDQGOHV RQHVHQVRUIRUDOOWKUHHEDQGV
:DWWV IRU  VHFRQGV +DV
GHUDWLQJFXUYH62
'LJLWDO:DWWPHWHU

0)-
*LDQW 6:5  :DWWPHWHU PHDVXUHV 
LQFKHV GLDJRQDOO\ DFURVV IDFH &RYHUV
WR0+] +DV:
UDQJHV IRU DFFXUDWH 453 RU 452 RS
0)- HUDWLRQ0)-:DWWPHWHU3RZHU6DYHUΠ0)-%
 : GU\ GXPP\ ORDG JRRG WR  *+] 0RXQWHG RQ FLUFXLW WXUQV RQ PHWHU RQO\ ZKHQ 5) 0)-ҋV KLJK DFFXUDF\ GLJLWDO 6:5  :DWW
ODUJH KHDY\GXW\ DLUFRROHG KHDWVLQN +DQGOHV  : SRZHULVEHLQJPHDVXUHG&RYHUV PHWHUIUHTXHQF\FRXQWHUPHDVXUHVWR
FRQWLQXRXV:IRUVHFRQGV7HÁRQŠ1FRQQHFWRU 0+]8VHV9EDWWHU\RU9'&RU N:DW0+]7UXHSHDNRUDYHUDJH
9$&ZLWK0)-' IRUZDUGDQGUHÁHFWHG:DWWV6:5DQGIUH
0)- TXHQF\ FDQ EH VLPXOWDQHRXVO\ GLVSOD\HG
<RXJHWWKUHHKLJKUHVROXWLRQIRUZDUGUH
 N: 'XPP\ /RDG 2KP ÁHFWHGSRZHUUDQJHVWKDWDUHDXWRPDWLFDO
2LO ÀOOHG ORZ 6:5 WR  0+] O\VHOHFWHGDWUXH453UDQJH :DWWIXOO
5DWHGN:&:RUN:3(3IRU VFDOH DPLGUDQJH :DWWVIXOOVFDOH 
PLQXWHV2QHKDOIUDWLQJIRU DQG D KLJKUDQJH  :DWWV IXOO VFDOH 
PLQXWHV  :DWWV &: RU  (DFK UDQJH KDV H[FHOOHQW UHVROXWLRQ 8VH
:DWWV 3(3 FRQWLQXRXV ,QFOXGHV 0)-  9'& RU  9$& ZLWK RSWLRQDO 0)-
LQGXVWULDO WUDQVIRUPHU JUDGH RLO *LDQW0+]:DWWPHWHU '$WWUDFWLYHFDELQHWPHDVXUHV
QR3&%  6DPHVL]HDV0)- :[+['LQFKHV

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


6:5:$770(7(56

6:5:DWW0HWHUV 30$:DWWPHWHU
'LDPRQG5)6:5:DWWPHWHUVFRYHUWKHIXOOUDQJH
RI DPDWHXU DSSOLFDWLRQV 7KH 6;& DQG 6;&
DUHWKHQHZHVWPRGHOV7KH &1+
6;&FDQEHXVHGRQ ‡&URVVQHHGOHGHVLJQUHDGVIRUZDUGUHYHUVH
0+]ZLWKDFRUUHFWLRQIDFWRU DQG 96:5 VLPXOWDQHRXVO\ QR FDOLEUDWLRQ
UHTXLUHG
‡(DV\WRUHDGPHWHU
‡3(3PRQLWRUIXQFWLRQ
‡,OOXPLQDWHGPHWHU9'&SOXJSURYLGHG
6;&

7KH 30$ PHDVXUHV DQG GLVSOD\V


IRUZDUGSRZHU XSWR: UHÁHFWHG
SRZHUDQG6:5VLPXOWDQHRXVO\RQLWVGXDO
PRYHPHQWPHWHUV\VWHPLQWKHIUHTXHQF\
UDQJH RI  0+] WR  0+]$FFXUDF\
RI WKH UHDGLQJV LV DVVXUHG EHFDXVH WKH
30$IHDWXUHVDWUXHVKLHOGHGGLUHF
6; WLRQDOFRXSOHU7KHEDFNOLWPHWHUFDQGLVSOD\
HLWKHU SHDN RU DYHUDJH SRZHU UHDGLQJV
ZLWKD3HDN+ROGIXQFWLRQDQGKDV
DQG:DWWUDQJHVHWWLQJV30$
6; +523ULFH

$OOPRGHOV 7KH 30$0  PRELOH YHUVLRQ KDV D


‡ ,OOXPLQDWHGPHWHUV UHPRWHFRXSOHUWKDWFDQEHPRXQWHGXS
‡ 5HTXLUHYROWV'& WRҋIURPWKHGLVSOD\KHDG
‡ /RZLQVHUWLRQORVVJHQHUDOO\OHVVWKDQG%LQ+) ‡ 3/FRD[FRQQHFWRU
UDQJHDQGG%DWKLJKHUIUHTXHQFLHV ‡ 9$&WR9'&DGDSWHULQFOXGHG
‡ 3RZHUPHDVXUHPHQWDFFXUDF\JHQHUDOO\“RQ ‡ 6L]H[[GHHS
KLJKHUSRZHUUDQJHVDQG“RQWKHORZHU ‡ :HLJKWOEV.J
‡ /RZORVV62FRQQHFWRUVDUHXVHGH[FHSWIRU
WKHKLJKIUHTXHQFLHVDVQRWHGLQWKHWDEOH
‡ 0HDVXUHPHQWVDUHIRUZDUGSRZHUUHÁHFWHGSRZHU
6:5DQGRQVHOHFWHGIUHTXHQFLHV3(3PRQLWRU &1+3
+RXU)$; 3URIHVVLRQDO6HULHV
'LDPRQG0HWHUV 2UGHU1XPEHUV +523ULFH
‡(DV\WRUHDGLOOXPLQDWHGH[WUDODUJHPHWHU
$QDKHLP  IDFHZLWKPLUURUHGJUDSKLQZDWWLQFUHPHQWV
‡&URVVQHHGOHGHVLJQUHDGVIRUZDUGUHYHUVH
$WODQWD  DQG 96:5 VLPXOWDQHRXVO\ QR FDOLEUDWLRQ
UHTXLUHG
%XUEDQN  ‡&1+3LVWKHQHZ:DWWYHUVLRQ
'HQYHU  ‡9'&SOXJSURYLGHG

0LOZDXNHH  'DLZD0HWHUV


1HZ&DVWOH 
2DNODQG 
3KRHQL[ 
3ODQR 
3RUWODQG 
6DOHP 
6DQ'LHJR 
:RRGEULGJH 

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


$1$/<=(56
$QWHQQD$QDO\]HUV $QWHQQD$QDO\]HU
6:5$QDO\]HUV

0)-
0)-& $QWHQQD
([SHUW
6:5$QDO\]HU70 ZLWK
0)- 91$ $QWHQQD
&$$
LPSHGDQFH PHWHU 0DUN,,
$QDO\]HU FRYHUV  WR
UHDGV DQWHQQD 6:5
 0+] ZLWK  +] 0+]
FRPSOH[ 5) LPSHG
UHVROXWLRQ)UHTXHQF\
DQFH UHVLVWDQFH 5 $QWHQQD
VZHHS SORWV 6:5
DQG UHDFWDQFH ;  RU
,PSHGDQFH UHVLV $QDO\]HU
PDJQLWXGH =  DQG
WDQFH UHDFWDQFH
SKDVH GHJUHHV 
SKDVHDQJOHFRPSOH[ &RPPHUFLDO *UDGH
FRD[FDEOHORVVLQG%
UHWXUQORVVDQG6PLWK 6:5,PSHGDQFH$QD
FRD[FDEOHOHQJWKDQG
&KDUW 6KRZV VLJQ RI UHDFWDQFH )HDWXUHV O\]HU 5DQJH   
GLVWDQFH WR IDXOW UHWXUQ ORVV UHÁHFWLRQ FRHI
DPD]LQJ DFFXUDF\ ZLWK 26/ 2SHQ6KRUW 0+] LQFOXGLQJ 
ÀFLHQW LQGXFWDQFH DQG FDSDFLWDQFH7HOOV EDW
/RDG FDOLEUDWLRQ (DV\WRUHDGEDFNOLW/&' 0+] EDQG   &KHFN
WHU\YROWDJH+DVKXJH/&'GLJLWDOUHDGRXWZLWK
)LWVLQWR\RXUKDQGSHUIHFWO\ DQWHQQD LQVWDOODWLRQV
EXLOWLQ IUHTXHQF\ FRXQWHU VLGHE\VLGH 6:5
LQ MXVW VHFRQGV 'HWHU
DQG5)LPSHGDQFHPHWHUV1L&G1L0+LQ
PLQH 6:5 DQG UHVR
WHUQDO EDWWHU\ FKDUJHU EDWWHU\ VDYHU IHDWXUH
QDQFHLQVWDQWO\1HZFRORU7)7GLVSOD\SHUPLWV
ORZ EDWWHU\ ZDUQLQJ DQG HDV\DFFHVV EDWWHU
0)-& HDV\ YLHZLQJ RI IUHTXHQF\ DQG EDQG LQIRUPD
LHV +DV VPRRWK UHGXFWLRQ GULYH WXQLQJ7UXO\
WLRQHYHQLQWKHGDUN$OVRKDVD%DQG6ZHHS
SRUWDEOH8VHVDONDOLQH1L&GRU1L0+EDW
7KLV FRPSDFW IXQFWLRQ WKDW DOORZV \RX WR PHDVXUH 6:5
WHULHV QRW LQFOXGHG  RU  9$& ZLWK RSWLRQDO
ZLGHUDQJH DQDO\] DFURVV WKH VHOHFWHG KDP EDQG DQG YLHZ LW RQ
0)-'
HULQFOXGHVWKH WKHGLVSOD\JUDSK
0+]EDQG&RYHUV 0DNHV6:5DGMXVWPHQWVTXLFNDQGHDV\%RWK
 0+]  6:5 DQG LPSHGDQFH PHDVXUHPHQWV DUH SUR
0)-& 0+]DQG YLGHG VLPXOWDQHRXVO\ 3UHFLVLRQ DQDORJ PHWHU
 0K] $QWHQQD SURYLGHV 6:5  LPSHGDQFH FKDQJHV LQ UHDO
&RYHUV  N+] WR
$QDO\]HU PRGH WLPH+523ULFH
0+]SOXVWR
UHDGV IUHTXHQF\
0+]+)9+)
6:5 FRPSOH[ LP
8+) +DV DOO RI WKH
IHDWXUHV RI WKH 0)-
SHGDQFHVLPXOWDQHRXVO\0+]IUHTXHQ *UDSKLF$QDO\]HU
F\FRXQWHUPRGHKDV+]UHVROXWLRQDQG
% SOXV D ELW
PHDVXUHV UHODWLYH ÀHOG VWUHQJWKIUHTXHQF\
$' FRQYHUWHU JLYHV
IRU WUDFNLQJ UHIHUHQFH  6LJQDO *HQHUDWRU
PXFK EHWWHU DFFX
PRGH VROLG VWDWH VZLWFKLQJ DQG HOHFWURQLF
UDF\ DQG UHVROXWLRQ 
WXQLQJ%DFNOLJKW1FRQQHFWRU
& R D [ & D O F X O D W R U 7 0
FDOFXODWHV FRD[ OLQH
OHQJWK LQ IHHW JLYHQ
FRD[OHQJWKLQHOHFWULFDOGHJUHHVDQGYLFHYHU
VD DQGFRD[LDOFKDUDFWHULVWLFLPSHGDQFHLQSXW
]HURWRVL[KXQGUHGRKPV  0)-
 0+] FRORU
JUDSKLF 91$ DQD
O\]HU3RFNHWVL]HG
0)-& ZLWK WUXO\ DFFXUDWH
6:5 5 ; DQG =
,I GLJLWDO GLVSOD\ LV DOO 9LYLG7)7PXOWLFRORU 0)-
\RX QHHG 0)-& GLVSOD\  6LQJOHIUH 0+]FRQWLQXRXVWZRSRUW*UDSKLF$Q
GRHV HYHU\WKLQJ 0)- TXHQF\ DQG VZHSW DO\]HU $ FRPSDFW FRPSOHWHO\ VHOIFRQWDLQHG
& GRHV ZLWKRXW IUHTXHQF\ RSHUDW KDQGKHOG JUDSKLQJ DQDO\]HU LQ WKH ÀHOG 2Q
DQDORJPHWHUV LQJ PRGHV 6HDPOHVV ''6 FRYHUDJH ZLWK WKH EHQFK LW EHFRPHV D IXOOÁHGJHG WZRSRUW
+]UHVROXWLRQIURP0+]6PRRWK 6  GHVNWRS PDFKLQH ZKHQ WHDPHG XS ZLWK
´VNLSIUHHµ HQFRGHU WXQHV IDVW RU VORZ ZLWK \RXU3&8VLQJSRZHUIXO,*PLQL91$IUHHZDUH
RXW PLVVLQJ D VWHS )LHOG VWUHQJWK PHWHU \RXFDQUXQGHWDLOHGGDWDDQDO\VLVDQGSULQWRXW
PHDVXUHVORFDOVLJQDOVGHWHFWVSRWHQWLDOLQ VWXQQLQJFRORUJUDSKLFSORWVWRGRFXPHQW\RXU
WHUIHUHQFH+LJKOXPHQRXWSXWHDV\WRUHDG ZRUN%XLOWLQEDFNOLJKWHGLQFK/&'JUDSKLF
4XHVWLRQV"&DOOD LQGLUHFWVXQOLJKW(DV\VHWXSZLWKRQO\IRXU GLVSOD\ )XOO VFUHHQ HDV\WRYLHZ 6:5 EDU
FRQWURO VZLWFKHV ZLWK FRQYHQLHQW RQVFUHHQ JUDSK FDSWXUH YLYLG VZHSW GLVSOD\V IRU 6:5
)ULHQGO\+DPDW+52 VRIW PHQXV 3HUVRQDOL]HG ,' IXQFWLRQ SUR LPSHGDQFH UHWXUQ ORVV SKDVH DQJOH DQG
JUDPV\RXUFDOORUQDPHRQWRWKHGLVSOD\ PRUH''6JHQHUDWRU

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


$17(11$$1$/<=(56
$QDO\]HU.LW
$$=RRP
:KHQLWFRPHVWRWKHLQVWDOODWLRQRUPDLQWHQDQFHRIDQ
DQWHQQDDQWHQQDDQDO\]HUVVLPSOLI\\RXUZRUN
5LJ([SHUWŒDQWHQQDDQGFDEOHDQDO\]HUVKHOS\RXPDWFK\RXUDQWHQQDDQGRUÀOWHUVGHWHFWFDEOH
IDXOWVRUFKHFNIRUORVV7KH\DUHUHDG\IRUXVHLQWKHÀHOGLPPHGLDWHO\DIWHUSRZHULQJRQDQGGR
QRWQHHGSUHRUUHFDOLEUDWLRQ

2XULQVWUXPHQWVKDYHDVLPSOHDQGFRQYHQLHQWXVHULQWHUIDFHDVZHOODVDEXLOWLQKHOSDVVLVWDQW
$OOWKHVHDGYDQWDJHVDQGKLJKDFFXUDF\RIPHDVXUHPHQWVPDNH5LJ([SHUWŒDQWHQQDDQGFDEOH
DQDO\]HUVLQGLVSHQVDEOHWRROVIRU+$0RSHUDWRUVDQGUDGLRHQJLQHHUV

8VHV
‡ 5DSLGFKHFNRXWRIDQDQWHQQD 8+)$QDO\]HUV $$=HUR
‡ 7XQLQJDQDQWHQQDWRUHVRQDQFH
‡ $QWHQQD 6:5 DQG LPSHGDQFH PHDVXUHPHQW ,QFUHDWLQJWKH$$=HURZHPHWWKHQX
DQGFRPSDULVRQEHIRUHDQGDIWHUVSHFLÀFHYHQW PHURXV ZLVKHV RI UDGLR DPDWHXUV DQG ',<
UDLQKXUULFDQHHWF  $$ KREE\LVWV IRU D PHDVXULQJ WRRO WKDW FDQ EH
‡ 0DNLQJFRD[LDOOLQHVRUPHDVXULQJWKHLUSDUDP HDVLO\LQWHJUDWHGLQWRWKHLURZQSURMHFWV7KLV
HWHUV 5LJ([SHUW $$ LV D DQDO\]HULVDYDLODEOHDVDNLWWRPHHWWKLVUH
‡ &DEOHWHVWLQJDQGIDXOWORFDWLRQ SRZHUIXO DQWHQQD DQD TXLUHPHQW ,W KDV HYHU\WKLQJ QHFHVVDU\ RQ
‡ 0HDVXULQJ FDSDFLWDQFH RU LQGXFWDQFH RI UHDF O\]HU GHVLJQHG IRU WHVW ERDUGXVHUVFDQFRQQHFWWKH$$=(52
WLYHORDGV LQJ FKHFNLQJ WXQLQJ RU WR WKHLU 3& WKURXJK D 86% WR 8$5777/
UHSDLULQJ DQWHQQDV DQG DGDSWRU  DQG SHUIRUP DOO WKH XVXDO VHWV RI
$QDO\]HUVZLWKWKH=RRPIHDWXUHXVHWKHLUDUURZ DQWHQQD IHHGOLQHV )UH ODERUDWRU\ PHDVXUHPHQWV LQ MXVW ÀYH PLQ
NH\VWRLQFUHDVHRUGHFUHDVHWKHFHQWHUIUHTXHQ TXHQF\UDQJHWR XWHV
F\ RU VFDQQLQJ UDQJH 7KH FKDUW ZLOO ]RRP LQ RU 0+]
RXWRUFKDQJHLWVSRVLWLRQ 7KH $$=(52 LV SHUIHFWO\ FRPSDWLEOH
*UDSKLFDO 6:5 VWDQG ZLWK RXU $QW6FRSH VRIWZDUH ([SHULHQFHG
LQJ ZDYH UDWLR  DQG XVHUV PD\ SDLU WKH $$=(52 ZLWK $U
+)$QDO\]HUV=RRP LPSHGDQFH DV ZHOO DV GXLQR ERDUGV PDNLQJ WKHLU RZQ KDUGZDUH
VRIWZDUHSURMHFWVLQFHWKLVDQDO\]HULVFRP
6PLWKSRODU FKDUW GLV
SOD\V DUH NH\ IHDWXUHV RI WKHVH DQDO\]HUV SDWLEOHZLWK$UGXLQRVWDQGDUGV
ZKLFKVLJQLÀFDQWO\UHGXFHWKHWLPHUHTXLUHG +523ULFH
$$=RRP WRDGMXVWDQDQWHQQD(DV\WRXVHPHDVXUH
PHQW PRGHV DV ZHOO DV DGGLWLRQDO IHDWXUHV
7KH$$=220LVDSRU
VXFKDVFRQQHFWLRQWRDSHUVRQDOFRPSXWHU 9+)$QDO\]HUV=RRP
$$=RRP
WDEOH VHOIFDOLEUDWLQJ DQD
+523ULFH
O\]HUGHVLJQHGIRUPHDVXU
LQJ 6:5 VWDQGLQJ ZDYH
UDWLR  UHWXUQ ORVV FDEOH
$$
ORVV DV ZHOO DV RWKHU SD $$
UDPHWHUV RI FDEOH DQG DQ
WHQQDV\VWHPVLQWKHUDQJH 5LJ([SHUW$$  LV =RRP
RI  N+] WR  0+] ZLWK D SRZHUIXO DQWHQQD
LQFUHGLEOH=220FDSDELOLW\ DQDO\]HU GHVLJQHG IRU
8VHVDQ62FRQQHFWRU WHVWLQJ FKHFNLQJ WXQ 7KH DQDO\]HU LV GH
+523ULFH LQJ RU UHSDLULQJ DQWHQ VLJQHG IRU PHDVXU
QDVDQGDQWHQQDIHHG LQJ 6:5 VWDQGLQJ
OLQHV LQ WKH IUHTXHQF\ ZDYH UDWLR  UHWXUQ
UDQJHWR0+= ORVV FDEOH ORVV DV
ZHOODVRWKHUSDUDP
$$=RRP *UDSKLFDO 6:5 HWHUV RI FDEOH DQG
VWDQGLQJ ZDYH UDWLR  DQWHQQD V\VWHPV
7KLVDQDO\]HULVGHVLJQHG DQG LPSHGDQFH DV LQ WKH UDQJH RI 
IRU PHDVXULQJ 6:5 ZHOO DV 6PLWKSRODU N+]WR0+]
VWDQGLQJ ZDYH UDWLR  UH FKDUW GLVSOD\V DUH NH\
WXUQ ORVV FDEOH ORVV DV IHDWXUHV RI WKHVH DQDO\]HUV ZKLFK VLJQLÀ $EXLOWLQ=220FDSDELOLW\PDNHVJUDSKLFDO
ZHOO DV RWKHU SDUDPHWHUV FDQWO\UHGXFHWKHWLPHUHTXLUHGWRDGMXVWDQ PHDVXUHPHQWVHVSHFLDOO\HIIHFWLYH$QLQWH
RIFDEOHDQGDQWHQQDV\V DQWHQQD(DV\WRXVHPHDVXUHPHQWPRGHV JUDWHGWLPHGRPDLQUHÁHFWRPHWHUPRGHFDQ
WHPV LQ WKH UDQJH RI  DV ZHOO DV DGGLWLRQDO IHDWXUHV VXFK DV FRQ EHXVHGWRORFDWHDIDXOWZLWKLQWKHIHHGOLQH
N+] WR  0+]$ EXLOWLQ QHFWLRQ WR D SHUVRQDO FRPSXWHU PDNHV WKH V\VWHP8VHV7\SH1FRQQHFWRU
=220 FDSDELOLW\ PDNHV 5LJ([SHUW$$DWWUDFWLYHIRUSURIHVVLRQ +523ULFH
JUDSKLFDO PHDVXUHPHQWV DOVDQGKREE\LVWV+523ULFH :LWK%OXHWRRWK
HVSHFLDOO\ HIIHFWLYH 8VHV
DQ62FRQQHFWRU
+523ULFHV &DOO+527ROO)UHHIRU4XRWHVDQG6SHFLDOV
:LWK%OXHWRRWK

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


7(67,167580(176
3RZHU/LQH1RLVH )UHTXHQF\&RXQWHU
5),1RLVH'HWHFWRU
0)-%
0)- )UHTXHQF\
5),1RLVH 0)-
&RXQWHU
'HWHFWRU $&
3RZHU/LQH 7KLVSRFNHWVL]HGIUH
8VH WKLV 5), GHWHF 1RLVH0HWHU TXHQF\FRXQWHUKDVD
WRUWRWUDFNGRZQDQG ODUJH HDV\WRUHDG
HOLPLQDWH5),FDXVHG  : [  + GLJLW
E\ UDGLDWLQJ FDEOHV EDFNOLW /&' GLVSOD\
DQG ZLUHV )LQG 5), 7KLV 0)- KDQGKHOG DQG DQ VHJPHQW 5) VLJQDO VWUHQJWK EDU
JHQHUDWHG E\ FRQ SRZHUOLQHQRLVHPHWHUOHWV\RXZDONRUGULYH JUDSK,WFRYHUV+]WR*+]ZLWK+]
VXPHUGHYLFHVFRP DURXQGWKHQHLJKERUKRRGWRVHDUFKRXWOHDN\ UHVROXWLRQ DQG IRXU VHOHFWDEOH JDWH VSHHGV
SXWHUV DQG KLJKWHFK RIÀFH HTXLSPHQW 7KH LQVXODWRUV ORRVH KDUGZDUH DQG FRUURGHG 7KH XQLW PHDVXUHV MXVW   : [  + [
GHWHFWRULVRODWHVFDEOHVSLFNLQJXS5),DQGLQ JURXQGOLQHVTXLFNO\<RXFDQWUDFNWKHQRLVH 'LQFKHV
GLFDWHVZKHQ\RXҋYHVXSSUHVVHGWKHSUREOHP VRXUFHULJKWGRZQWRWKHSROHWUDQVIRUPHURU
LQVXODWRU <RX FDQ DOVR SLQSRLQW IDXOW\ GLP /RZ SRZHU FRQVXPSWLRQ ZLWK LQWHUQDO OLWKLXP
0)-DOVRZRUNVZLWKPRELOHLQVWDOODWLRQV PHUV HOHFWULF IHQFH DUFV VSDUNLQJ SRZHU EDWWHU\  P$K  DQG  9'& $ SRZHU
IHUUHWLQJ RXW DOWHUQDWRU QRLVH LJQLWLRQ SXOVHV HTXLSPHQW QHRQ VLJQV DQG PXFK PRUH /HW DGDSWRUFKDUJHUIRU9$&+DVORZEDWWHU\
DQG PLFURSURFHVVRU QRLVH RQ IHHGOLQHV DQG HTXLSPHQW RZQHUV KHDU KRZ WURXEOHVRPH LQGLFDWRU5XQVIRUDERXWKRXUVRQDVLQJOH
SRZHUOHDGV WKHLUQRLVHLVDQGVHHÀUVWKDQGZKDWҋVFDXV FKDUJH$XWRVOHHSPRGH
LQJWKHSUREOHP+523ULFH
:LWK D VLJQDO JHQHUDWRU \RX FDQ SURÀOH WKH 0)-%KDVD2KPDPSOLÀHUIRU0+]WR
UDGLDWLQJ FXUUHQW GLVWULEXWLRQ RI DQWHQQDV UD *+]RSHUDWLRQDQGD02KPDPSOLÀHUIRU
GLDOV IHHGOLQHV JURXQG V\VWHPV DQG FRQWURO $QWHQQD3KDVH6KLIW +]WR0+],WKDVGHJUHHÁLSVWDQG
OLQHV IRUHDVLHUYLHZLQJDQGDWHOHVFRSLQJDQWHQQD
ZLWK %1& FRQQHFWRU$ KROG EXWWRQ ORFNV WKH
(DV\WRXVH6LPSO\FODPSFXUUHQWWUDQVIRUP 0)- 0)-%GLVSOD\DQGZLOOFRQWLQXDOO\GLVSOD\
HURYHUVXVSHFWHGFDEOHRUZLUHWRGHWHFW5), WKHODVWIUHTXHQF\UHFHLYHG7KHUHLVDOVRDQ
FDXVLQJFRPPRQPRGHFXUUHQWV6XSHUFRP DXWRPDWLFKROGPRGHIRUORFNLQJLQRQVSHFLDO
SDFW:[+['LQFKHVÀWVLQ\RXU 0+] IUHTXHQFLHV+523ULFH
VKLUW SRFNHW 8VH  9ROW EDWWHU\ 8VDEOH IURP 3UHFLVLRQ
9/)WR9+)*DLQDGMXVWDEOHRYHUG%UDQJH
+523ULFH $QWHQQD 6WHS$WWHQXDWRU
3KDVH6KLIW
0HWHU
)LHOG6WUHQJWK0HWHU
0)- XVHV D ORZSRZHU KLJKVSHHG GXDO
FRPSDUDWRU FLUFXLW WR PDNH SUHFLVLRQ SKDVH
0)-% PHDVXUHPHQWVEHWZHHQ0+]$FLUFXLW
LQGLFDWHVLIXQNQRZQSKDVHODJVRUOHDGVWKH
'HOX[H UHIHUHQFHVLJQDO
)LHOG6WUHQJWK 0)-
6LJQDOVXVHGIRUPHDVXUHPHQWFDQFRPHIURP 3UHFLVLRQ6WHS$WWHQXDWRU
0HWHU DQDQWHQQDDQDO\]HUVXFKDVWKH0)-RU
DQ\RWKHUJHQHUDWRUWKDWZLOOVXSSO\DWOHDVW 6WHS DWWHQXDWRU  WR  0+] UHFHLYH OLQH
N+] YROWSHDNRXWSXWLQWRWKHORDG,WKDVDEXLOWLQ RQO\G%RIDWWHQXDWLRQ2KPV
WR0+] VZLWFKDEOH2KPORDG P:PD[ VRWKH
XVH RI DQ H[WHUQDO ORDG DQG %1&7(( LV QRW 3ORW DFFXUDWH DQWHQQD SDWWHUQV &RQQHFW WKH
QHHGHGLQPRVWWHVWV0)-UHDGVWKHIUH DWWHQXDWRUEHWZHHQ\RXUHFHLYHUDQGDQWHQQD
7KLV QHZ HDV\WRXVH 0)- DQWHQQD PHWHU TXHQF\RIWKHVLJQDOVRJHQHUDWRUVZLWKRQO\D DQGXVH\RXU6PHWHUDVDSUHFLVLRQFDOLEUDW
VKRZV WKH VWUHQJWK RI WKH DFWXDO ÀHOG EHLQJ FRDUVHRUQRIUHTXHQF\UHDGRXWFDQEHXVHG HGÀHOGVWUHQJWKPHWHU(OLPLQDWHEORFNLQJDQG
UDGLDWHGIURP\RXUDQWHQQD<RXFDQXVHLWWR FURVVPRGXODWLRQE\DWWHQXDWLQJVWURQJRXWRI
GHWHUPLQH WKH EDVLF UDGLDWLRQ SDWWHUQ RI \RXU 6HWXSLVVLPSOH3OXJLQWKHVLJQDOJHQHUDWRU EDQGVLJQDOVEHIRUHLWJHWVLQWR\RXUUHFHLYHU
DQWHQQD DQG LQVWDQWO\ NQRZ LI LW UDGLDWHV EHW RXWSXW WR ,1 FRQQHFW WKH 5HIHUHQFH 287 WR 0XVWEHXVHGRQO\LQD´5HFHLYHµOLQHQRWDW
WHURUZRUVH<RXFDQFRPSDUHRQHDQWHQQDWR WKHLQSXWRIWKHQHWZRUNDQGWKHRXWSXWRIWKH WKH RXWSXW RI \RXU WUDQVPLWWHU &RQQHFW LW WR
DQRWKHU)LQGRXWZKLFK+7DQWHQQDUDGLDWHV QHWZRUNWR81.12:1,17XUQLWRQDQGUHDG \RXUUHFHLYHULQSXWWRSURSHUO\WHUPLQDWH\RXU
WKH VWURQJHU VLJQDO 0HDVXUH \RXU +) DQWHQ WKHSKDVHVKLIWDQGWKHIUHTXHQF\$EULJKWWZR SUHVHOHFWRU DW DOO IUHTXHQFLHV WR LQVXUH JRRG
QDQRZDQGFRPSDUHLWODWHUWRPDNHVXUHLWV OLQH /&' GLVSOD\ DOORZV SUHFLVLRQ UHDGRXW RI RXWRIEDQGÀOWHULQJ8VHLWWRGHWHUPLQHJDLQ
SHUIRUPDQFHLVVWLOOXSWRSDU$GMXVWDJURXQG WKHSKDVHIURPWRGHJUHHVZLWKRXW DQG ORVV DQG WR HYDOXDWH OLQHDULW\ RI FLUFXLWV
OHDG DUWLÀFLDO JURXQG FRXQWHUSRLVH RU WXQH LQWHUSUHWLQJDQDQDORJPHWHURUJXHVVLQJDWWKH PHDVXUH LQSXW DQG RXWSXW OHYHO GLIIHUHQFHV
\RXU WUDQVPLWWHU RU DQWHQQD WXQHU IRU PD[L SKDVHSRODULW\:LWKORZSRZHUFRPSRQHQWVLW ,VRODWH RQH FLUFXLW IURP DQRWKHU &KDQJH XQ
PXP ÀHOG VWUHQJWK 7KH 0)-% LQFOXGHV ZLOORSHUDWHPDQ\KRXUVRQDVLQJOH9EDWWHU\ NQRZQ UHDFWLYH ORDGV DQG VRXUFHV E\ NQRZQ
DEXLOWLQVHQVHDQWHQQDWRVLPSOLI\PHDVXUH RU ZLWK WKH RSWLRQDO$& DGDSWHU 0)-' OHYHOV([WHQGWKHUDQJHRIVHQVLWLYHPHDVXU
PHQWV+523ULFH +523ULFH LQJHTXLSPHQW+523ULFH

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


32:(5$&&(6625,(6
'&3RZHU
'&3RZHU6WULSV 'LVWULEXWLRQ%R[

0)- 0)-
+LJK FXUUHQW PXOWLSOH '& RXWOHW 8VH IRU WZR +) )RXU VHWV RI 0)-
DQG  RU 9+) WUDQVFHLYHUV DQG VL[ RU PRUH DF 3 R Z H U 3 R O H Š 9ROW$PS3DQHO0HWHU
FHVVRULHV IURP \RXU WUDQVFHLYHUҋV PDLQ  9'& RXWSXWV D WRWDO
SRZHUVXSSO\ RI $ RQH ELQGLQJ SRVW LQSXW $ 7ZR   9'&   $ 'LJLWDO 9ROW  $PS
PPFHQWHUSRVLWLYHSRZHUSOXJVIRUDFFHVVRULHV 3DQHO0HWHUZLWKEXLOWLQ&XUUHQW6KXQW
3RZHU3ROHŠPDWLQJFRQQHFWRUVLQFOXGHG:[ &RQQHFW LQOLQH WR PRQLWRU YROWDJH DQG
+['LQFKHV+523ULFH FXUUHQWRI\RXUPRELOHUDGLRRUDFFHVVR
U\ 'LVSOD\V YROWDJH DQG FXUUHQW VLPXO
WDQHRXVO\ ZLWK GXDO  LQFK UHG  EOXH
0)- 5LJ3URWHFWLRQ /('GLJLWV,QSXWRXWSXWZLWK$QGHUVRQ
3RZHU3ROHVŠ+DQGOHVXSWR$5H
7RSRZHUIRXU+)9+)UDGLRV WZRDWDPSV
0)-IRU YHUVHSRODULW\SURWHFWHG:[+[
HDFKDQGWZRDWFRPELQHG VLPXOWDQHRXVO\
'LQFKHV
0RELOHV
3URWHFW\RXUPRELOHULJIURP
PDQ\ XQVHHQ RSHUDWLQJ
SUREOHPV IRXQG LQ YHKLFOHV
0)- WRGD\ $ EXLOW LQ VXUJH SUR
'HOX[H PXOWLSOH '& SRZHU RXWOHW  RXWOHWV IRU WHFWLRQ GLRGH UHGXFHV WKH
SRZHULQJDFFHVVRULHV FKDQFHDKLJKYROWDJHVSLNH
ZLOO GDPDJH \RXU ULJ DQG 0)-
KDVUHYHUVHSRODULW\SURWHFWLRQ
:DWWPHWHU3RZHU$QDO\]HU
0)- ZLOO VKXW GRZQ \RXU ULJ LI WKH YROWDJH +LJK3UHFLVLRQ:DWWPHWHU3RZHU$QD
JHWVWRRORZIRUSURSHUYHKLFOHRSHUDWLRQ$GHOD\ O\]HU GLVSOD\V $PSV 9ROWV DQG :DWWV
0)- LV OLNH WKH 0)- ZLWKRXW RQ  RII
WLPHU ZKLFK LV FRQWUROOHG RII WKH LJQLWLRQ VHQVH FRQWLQXRXVO\ IURP 9 0HDVXUH
VZLWFKYROWPHWHUDQGIXVHSDLURXWOHWV
OLQHHQVXUHV\RXUULJGRHVQRWWXUQRQXQWLOQRU FXUUHQW SHDN FXUUHQW SRZHU DQG SHDN
PDOYROWDJHLVUHDFKHG SRZHU ,QSXW  RXWSXW ZLWK $QGHUVRQ
0)- FRQQHFWV WR \RXU ULJ ZLWK $QGHUVRQ 3RZHU3ROHVŠ%DFNOLW/&'GLVSOD\
3RZHU3ROHVŠIRUKLJKFXUUHQWOLQHVDQGDED\R :[+LQFKHV
QHWOXJWRWKHLJQLWLRQVHQVHOLQH$$IXVHSUR
0)- WHFWV IRU RYHUFXUUHQW RU UHYHUVH YROWDJHV )LWV 0RELOH'LJLWDO
*HW WKH EHVW RI ERWK FRQQHFWRUV +DV$QGHUVRQ QLFHO\LQWRDYHKLFOHLQVWDOODWLRQZLWKLWVFRPSDFW
3RZHUSROHVŠ DQG KLJKFXUUHQW ELQGLQJ SRVWV VL]HRI:[+['LQFKHV '&9ROWDJH0RQLWRUV
2XWOHWV    DUH 3RZHUSROHVŠ RXWOHW  LV D
0)-
$KLJKFXUUHQWELQGLQJSRVW,QFOXGHVSDLUVRI 0)-
3RZHUSROHŠ$FRQWDFWVWHQIXVHV 7UDQVFHLYHU YROWDJH
FRQGLWLRQHU SURYLGHV
UHYHUVHRYHUYROWDJH
YROWDJHWUDQVLHQWDQG
VKRUW FLUFXLW SURWHF
WLRQV *LYHV VXSHUE
QRLVHDQGULSSOHÀOWHULQJDQGSRZHUVXSSO\EXIIHU
0)- LQJIRU\RXUEDVHSRUWDEOHRUPRELOHWUDQVFHLYHU
 RXWOHWV IDFWRU\ LQVWDOOHG IXVHV KDQGOHV  0)- SURWHFWV DJDLQVW DFFLGHQWDO UHYHUVH
DPSVWRWDO YROWDJHFRQQHFWLRQDOHUWLQJZLWKDEULJKWZDUQLQJ
/(' 2QFH '& SRODULW\ LV FRUUHFWHG 0)-
0)-
UHFRYHUVDQGRSHUDWHVQRUPDOO\
0)-ҋV QHZ YROWDJH PRQLWRUV VKRZ FDU
+HDY\ GXW\ WUDQVLHQW VXSSUHVVRU KDQGOHV SHDN EDWWHU\ YROWDJH DW DOO WLPHV 7KUHH µ
FXUUHQWV XS WR $ )RXU IDUDGV RI XOWUD KLJK WDOOEULJKWUHG/('VDUHHDVLO\VHHQGD\
0)- YDOXHFDSDFLWRUVÀOWHURIIYLUWXDOO\DOOSRZHUVXS RU QLJKW 3OXJ LQWR D FLJDUHWWH OLJKWHU
RXWOHWV  $FRQWDFWV SO\ QRLVH DQG ULSSOH DQG SURYLGH SRZHU VXSSO\ DQG \RX DUH UHDG\ WR PRQLWRU 8VH 
EXIIHULQJ )RU WHPSRUDU\ PRELOH RSHUDWLRQ OLNH 9 RU  9 EDWWHULHV  9'& %XLOWLQ
D UHQWDO FDU UXQ \RXU WUDQVFHLYHU D IXOO  : IXVH0)-FRPHVZLWKDPRXQWHG
66%IURP\RXU$FLJDUHWWHOLJKWHUVRFNHW GLVSOD\DGKHVLYHSOXJZLWKIRRWZLUH
6WDQGDUG$QGHUVRQ3RZHU3ROHŠFRQQHFWRUVDUH 0RGXOHLVDFRPSDFW:[+[
0)- XVHGIRUWKH'&LQSXWDQGRXWSXW&RPSDFW: '0)-LVDQDOOLQRQHSOXJ
RXWOHWV  $FRQWDFWV [+['LQFKHV PRGXOH:[+['

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


&/2&.6
-XPERV 'XDO'LVSOD\V
0)-'
7KLV LV WKH ZRUOGҋV
PRVWSRSXODUKDPUD
GLRZDOOFORFN7UXH
KRXU TXDUW] PRYHPHQW
+XJH LQFK EODFN IDFH 0)-
ZLWK ODUJH ZKLWH QXPHUDOV JLYHV H[FHOOHQW 5&
YLVLELOLW\DFURVVURRP$WWUDFWLYHJROGFRORUHG
KRXUPLQXWHDQGVHFRQGVKDQGVORRNVJUHDW 7KLVMXPER/&'FORFNGLVSOD\ERDVWVJLDQW
5DGLRFRQWUROOHG
RQDQ\KDPVKDFNRURWKHUZDOO+523ULFH LQFKGLJLWV7KHZKROHGLVSOD\LV:[ 0)-5&
 +['LQFKHV3ODFHLWRQDGHVN (VSHFLDOO\GHVLJQHGFORFNIRUDPDWHXUUDGLRWKLV
ZLWKLWVFRQYHQLHQWÁLSVWDQGRUKDQJRQ\RXU PRGHOKDVWZRLQGHSHQGHQWDWRPLFKRXU
0)-5& ZDOO<RXQHYHUQHHGEDWWHULHVIRUWKLVVRODU FORFNVZLWKH[FOXVLYH87&WLPH]RQHDQGDGHGL
/DUJHLQFKGLDPH SRZHUHGFORFN8VHRUKRXUWLPHIRU FDWHG VWDWLRQ WHQ PLQXWH ,' WLPHU $ VLQJOH WLPH
WHUDQDORJDWRPLFZDOO PDWZLWK0)-H[FOXVLYH7UXH87&ŒWLPHLQ EDVHNHHSVERWKFORFNVSHUIHFWO\V\QFKURQL]HG,W
&ORFN    KRXU FOXGLQJ+DZDLLDQG3XHUWR5LFR6HOHFW*07 LV UDGLR FRQWUROOHG VR LW NHHSV SHUIHFW WLPH 6HW
IRUPDWV GLVSOD\HG RURWKHUWLPH]RQHRQWKHPDS7XUQGD\OLJKW HDFK FORFN LQGHSHQGHQWO\ IRU  RU  KRXU GLV
XQGHU UHDO JODVV IDFH VDYLQJV WLPH RQ RU RII ,QFOXGHV DQ LQGRRU SOD\WLPH]RQHDQG'67RQRII%XLOWLQPLQ
+523ULFH WKHUPRPHWHUDQGK\JURPHWHUWRUHDGLQGRRU XWH VWDWLRQ ,' WLPHU ZLWK /(' DQG EX]]HU DOHUWV
KXPLGLW\,WGLVSOD\VWKHPRQWKGDWHDQGGD\ 7LPHUUHVHWVE\DVLPSOHSUHVVRIDVZLWFK+XJH
0)- RIWKHZHHNLQRQHVLPXOWDQHRXVORRNDWWKLV  : [  + /&' GLVSOD\ ZLWK /(' EDFNOLJKWV
6HW WKLV  KRXU KDQGVRPHFORFN%HDXWLIXOPHWDOOLFWDQFRORU )OLSVWDQGIRUGHVNGLVSOD\DQGPRXQWLQJKROHIRU
4XDUW] FORFN WR 87& DQGEULJKW/&'GLVSOD\+523ULFH ZDOOPRXQW8VHVWZR$$EDWWHULHV QRWLQFOXGHG 
*07 DQG \RX FDQ 6H[\EODFNKDUGSODVWLFFDELQHWLV:[+[
GHWHUPLQH WKH WLPH LQ 'LQFKHV+523ULFH
DQ\]RQHRIWKHZRUOGDW
DQ\ WLPH RI WKH GD\ 3UH
PLHU ZRUOG FLWLHV HQFLUFOH LWV FRORUIXO ZRUOG
PDSIDFHWRLQGLFDWHWLPH]RQHµIDFHLV
HDV\ WR VHH DFURVV URRP 6HFRQGV KDQG
+523ULFH

0)- +RXU&ORFN
0)-5& +RXUMXPERUHG/('ZDOOFORFN5XQV
0)-%
'XDO WLPH ]RQH RII  9$& ZLWK  9 EDWWHU\ WLPH EDFNXS
/&'$WRPLF &ORFN 'XDO FORFN KDV VHSDUDWH    KRXU GLVSOD\V
+RXU  PLQXWH VHW EXWWRQV RQ IURQW SDQHO
OHWV \RX UHDG DQ\ 5HDG 87& DQG ORFDO WLPH VLPXOWDQHRXVO\ )HD
+523ULFH
WZR WLPH ]RQHV LQ WXUHV KXJH KLJKFRQWUDVW LQFK /&' QXPHU
 RU  KRXU IRUPDW  6XSHU FRPSDFW DW DOV WKDW PDNHV LW HDV\ WR UHDG DFURVV WKH URRP
WUDFWLYHVLOYHUFORFNIROGVXSDQGVOLGHVLQD 0RXQWHG LQ DWWUDFWLYH VROLG EUXVKHG DOXPLQXP
VKLUWSRFNHW+523ULFH IUDPH ZLWK VORSHG IDFH IRU HDV\ YLHZLQJ 6\Q
FKURQL]H WR 87& IRU VSOLWVHFRQG WLPLQJ 4XDUW]
FRQWUROOHGIRUH[FHOOHQWDFFXUDF\/RQJOLIHEXWWRQ
EDWWHU\LQFOXGHG:['[+µ0)-RQH
\HDUOLPLWHGZDUUDQW\+523ULFH
0)- 0)-
% 6ZLWFKDEOHKRXUGLVSOD\ZLWK+8*(
µUHG/('V$EVROXWHO\VKLQHVIURPDFURVV
DWRPLF WKH URRP 6XSHU FRPSDFW  + [  : [
LQFK GLJLWV 7UXH 87& 'D\ GDWH LQGRRU 'LQ1LQHPLQXWH,'WLPHUDODUP9
WHPSHUDWXUH6RODUSRZHUHGµ:[µ EDWWHU\EDFNXS8VH9$&+]*UHDW
+[µ'+523ULFH IRUWKHVLJKWLPSDLUHG+523ULFH

0)-%
5HDGERWK87&DQGORFDOWLPHDWDVLQJOHJODQFH
ZLWKWKLVGXDODWRPLFFORFN'LVSOD\VKRXU
0)- WLPH VLPXOWDQHRXVO\ ² VHW HDFK LQGHSHQGHQWO\
% 0)- $XWRPDWLF EDFNOLJKW OLJKWV XS HYHU\ GD\ DW \RXU
%5& SUHVHWWLPHIRUKRXUV0RXQWHGLQDKDQGVRPH
:RUOG PDS   KRXU ZDOO VLOYHUPHWDOOLF KDUGSODVWLF IUDPH LW KDV +8*(
FORFN VKRZV RUGHVNPRXQWDWRPLFFORFN$OPRVWLQFK HDV\WRVHH:E\+LQFK/&'QXPHUDOVDQ
RUKRXU KLJK GLJLWV FDQ EH UHDG IURP DFURVV WKH H[FOXVLYH87&]RQHDQGUXQQLQJVHFRQGVGLVSOD\
WLPHDQ\ZKHUHLQWKHZRUOG$OVRVKRZVGD\ URRP  '67 FDQ EH GLVDEOHG WR DFFXUDWHO\ :[+['PRXQWVRQZDOORUGHVN
RI ZHHN PRQWK GDWH DQG \HDU 7LPH GLV UHDG 87& FRQVLVWHQWO\ 5XQQLQJ VHFRQGV PRXQW'D\OLJKWVDYLQJVWLPHFDQEHGLVDEOHGLQ
SOD\VKRXUPLQXWHVHFRQG'D\OLJKWVDY PRQWK GDWH GD\ DQG LQGRRU WHPSHUDWXUH GHSHQGHQWO\LQHDFKFORFNGLVSOD\8VHVIRXU$$
LQJVWLPHIHDWXUH+523ULFH DUHDOOGLVSOD\HG+523ULFH EDWWHULHV+523ULFH

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


(48,30(17028176 '(6.67$1'6
9HQW
0RXQW
1LIW\
/0 'HVN
7KHYHQWPRXQW
5DGLRVDUH127LQFOXGHG7KH\DUHVKRZQ
KDV D  KROH
6WDQGV
IRULOOXVWUDWLRQSXUSRVHVRQO\ $036 SDWWHUQ
WKDW FDQ EH DW
%HWZHHQWKH6HDWV WDFKHG WR  $OLQFR ,FRP
0RXQW .HQZRRGDQG<DHVXUHPRWHKHDG
EUDFNHWV6ZLYHOGHJUHHVIRURSWLPDOYLHZ
/0:HGJH LQJ7KHYHQWPRXQWFDQEHLQVWDOOHGRUUHPRYHG
3ODVWLF GHYLFH KROGHU ZHGJHV EHWZHHQ VHDW LQVHFRQGV)LWVPRVWKRUL]RQWDOYHQWORXYUHV,W
DQG FRQVROH $GMXVWDEOH YLHZLQJ DQJOH SUR GRHV QRW ZRUN RQ WKH ODUJH FLUFXODU YHQWV OLNH
YLGHVPXOWLSOHRSWLRQVIRULQVWDOOLQJWZRGHYLFHV WKRVHIRXQGLQ0XVWDQJVDQG37&UXLVHUV+52
0RELOH 5DGLR 3ULFH 5DGLRQRWLQFOXGHG
5HPRWH +HDG
+7 0LFURSKRQH 7KH +7 'HVN 6WDQG VSRUWV D JORVV\ MHW
&HOO SKRQH DW EODFN ÀQLVK 0DLQ VXSSRUW SODWH DQG VKHOI
WDFKHV ZLWK WKH DUHPDGHRIWRXJKGXUDEOHSRO\FDUERQDWH
RSWLRQDO /0+ DQGWKHVWHHOEDVHKDVDKHDY\GXW\SRZ
KROGHU  LQ DQ\ GHUFRDWÀQLVK7KLVWKLQJORRNVJUHDW$G
F R P E L Q D W L R Q MXVWDEOHWRÀWDOOKDQGKHOGUDGLRV3URYLGHV
\RXSUHIHU+52 VROLGVWDEOHVXSSRUWKROGLQJWKHUDGLRDWD
3ULFH 9HQW0RXQW FRQYHQLHQW YLHZLQJ DQG RSHUDWLQJ DQJOH
+523ULFH
Z6LGH*ULS+ROGHU
/0+
7KHYHQWPRXQWLQFOXGHVDVLGHJULSKROGHUIRU
VRPH.HQZRRGDQG,FRPUHPRWHKHDGV7KHJULS
KDVSDGGHGDUPVDQGFDQKDQGOHGHYLFHVIURP
LQFKHVWRLQFKHVLQKHLJKW(DVLO\UHPRYH
\RXUGHYLFHWRVWRUHRXWRIVLJKWZKHQ\RXUHDFK 2XU 8QLYHUVDO :LUH
)ORRU0RXQW \RXUGHVWLQDWLRQ)RUXVHZLWKKRUL]RQWDODLUYHQW %DOH 6WDQG FDQ EH XVHG
/0 ORXYUHV+523ULFH ZLWKDQ\UDGLRHTXLSSHGZLWKDIROGDEOHZLUH
7KLVPRXQWKDVD*RRVHQHFN6ZLYHO0RXQW VWDQGSURYLGLQJDQLGHDODQJOHIRUYLHZLQJ
LQJ3HGHVWDODOORZLQJ\RXWRSODFH\RXUGHYLFH WKHGLVSOD\DQGZRUNLQJWKHFRQWUROV,WFDQ
LQWKHSHUIHFWSRVLWLRQIRURSWLPDOYLHZLQJ-XVW %HDQ%DJ EH XVHG ZLWK DQ\ UDGLR KDYLQJ D IROGDEOH
ORRVHQWKHSDVVHQJHUVHDWEROWVOLGHWKHPRXQW ZLUHVWDQGLQFOXGLQJWKH)7,&
EUDFNHWXQGHUWKHEROWWLJKWHQWKHEROW7KHPRXQW
'DVK:LQGVKLHOG
,& ,& 76 76 .
FRPHVZLWKDKROH$036SODWHWRPRXQWUHPRWH 0RXQW .6';657+523ULFH
KHDGV+523ULFH

$GDSWHUIRU<DHVX,FRP

/0$'
Z6LGH*ULS+ROGHU
$GDSWHU NLW IRU WKH UH /0+
PRWHGLVSOD\KHDGVWKDW 5DGLRQRW
XVH WKH FDPHUD VW\OH 7KHEHDQEDJPRXQWZHLJKVSRXQGVDQGKDVD
QRQVNLGVXUIDFHRQRQHVLGH2QWKHRWKHUVLGH LQFOXGHG
WKUHDGHGVRFNHWWRKROG
LVDSODWHGHVLJQHGIRUWKH/0PRXQWVXFWLRQ
WKH GLVSOD\ KHDG WR WKH
FXSWRDWWDFKWR7KH*ULSRPDWLFVLGHJULSKROGHU
PRXQW  7KH NLW LV VROG KDVSDGGHGDUPVWKDWKROG\RXUWUDQVFHLYHU+52
VHSDUDWHO\DQGDWWDFKHV 3ULFH
WR DOO WKH /LGR 0RXQWV
'HVN 6WDQGV DUH FXVWRP GHVLJQHG WR
+523ULFH &XS+ROGHU0RXQW SHUIHFWO\ ÀW \RXU UDGLR SURYLGLQJ DQ LGHDO
/0(;3 DQJOH IRU YLHZLQJ WKH GLVSOD\ DQG VWDEOH
%HDQ%DJ'DVK0RXQW 7KH&XS+ROGHUPRXQW VXSSRUWIRUWRXFKLQJEXWWRQVRQWKHVFUHHQ
ZRUNVIRUHLWKHUDQ+7 DQG ZRUNLQJ WKH FRQWUROV <RXU UDGLR VH
RU D UHPRWH UDGLR FXUHO\ DWWDFKHV WR WKH VWDQG XVLQJ WZR
/0 KHDG$Á\ZKHHOFRQ WKXPEVFUHZVIRUWKHPRXQWLQJKROHVDWWKH
WURORQWKHWRSRIWKH EDFNRIWKHFRQWUROKHDG$QDGGLWLRQDOIRXU
EDVHDOORZVWKHXVHU UXEEHU IHHW DUH SURYLGHG IRU XVH ZLWK WKH
WR DGMXVW WKH PRXQW PDLQERG\RIWKHUDGLRDOORZLQJLWWRDOVREH
7KH EHDQ WRMXVWDERXWDQ\VL]H SODFHGRQWKHGHVNWRS
EDJ LQ FXSKROGHU7KHPRXQW
FOXGHVDVDIHW\ORRSDQGSODVWLFKRRNWRHQVXUH VWDQGVLQFKHVWDOO +523ULFH ,FRP,' 
VWDELOLW\RIWKHZHLJKWHGIULFWLRQGDVKPRXQW7KH DQGFDQEHLQVWDOOHGRU +523ULFH ,FRP,& 
RSHQGHVLJQLQWKHIURQWRIWKHPRXQWDOORZVIRU UHPRYHGLQVHFRQGV +523ULFH (OHFUDIW3; 
YLHZLQJ\RXUHQWLUH*36+523ULFH +523ULFH +523ULFH <DHVX)70'5 

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


0,1,0$18$/6 678'<$,'6
5DGLR0DQXDOV
*RUGRQ
2MJX]1MRM1ERYEPW
0LQL0DQXDOV DUH IXOO\ ODPLQDWHG VSLUDO ERXQG ERRNOHWV
:HVW
[LQFKHVSURYLGLQJVLPSOLÀHGVWHSE\VWHSLQVWUXF
WLRQVIRUDOO\RXUUDGLR
VIHDWXUHV7KHVHVKRUWIRUPPDQXDOV
DUHVPDOOHUPRUHGXUDEOHDQGHDVLHUWRXVHWKDQPDQXDOV
ʵ˖˗ˆ˛˙ˋ˖ˊ˖ˊˇʤˇ˕˖ʂ
QRUPDOO\VXSSOLHGZLWKDUDGLR 3DUW  +52
1XPEHU'HVFULSWLRQ 3ULFH
<DHVX:RX[XQ
6WXG\0DQXDOV
*:70 7HFKQLFLDQ&ODVV%RRN 
*:7: 7HFKQLFLDQ$XGLR7KHRU\ 
 &RXUVHRQ&'V
1&6 7HFK%RRNSOXV 
 6RIWZDUH3DFNDJH
*:*0 *HQHUDO&ODVV%RRN 
.HQZRRG *:*: *HQHUDO$XGLR7KHRU\ 
 &RXUVHRQ&'V
*:(0 ([WUD&ODVV%RRN 
*:(: ([WUD$XGLR7KHRU\ 
 &RXUVHRQ&'V
(&6 ([WUD%RRNSOXV 
 6RIWZDUH3DFNDJH
+26 :<,+DP2SHUDWRU 
 6RIWZDUH²QRERRNV
+26% :<,+DP2SHUDWRU 
 6RIWZDUHSOXVERRNV
*86 *HQHUDO%RRNVRIWZDUH 

0RUVH&RGH6WXG\0DWHULDOV
*: 0RUVH&RGHZSP 
$OLQFR  &'V
*: 0RUVH&RGHZSP 
 &'V
*: 0RUVH&RGHZSP 
 &'V
0)- *:&7 &:5HIUHVKHU&RXUVH 
 ZSPDXGLR&'V

2WKHU%RRNV
*6( *HWWLQJ6WDUWHG 
 LQ(OHFWURQLFV
0LVFHOODQHRXV 0,1, 0LQL1RWHERRN9RO 
,FRP  HOHFWURQLFIRUPXODV
 V\PEROVDQGFLUFXLWV
%(/& %DVLF(OHFWURQLFV 
%'( %DVLF'LJLWDO(OHFWURQLFV 
%&( %DVLF&RPPXQLFDWLRQV 
  DQDORJ (OHFWURQLFV
*52/ *HW<RXU&RPPHUFLDO 
5$'$55DGLR/LFHQVH²%RRN
*563 *HW<RXU&RPPHUFLDO 
5$'$55DGLR/LFHQVH²%RRNSOXV
 :<,6WXG\6RIWZDUH3DFNDJH

&DOO+527ROO
)UHHIRU4XRWHV
DQG6SHFLDOV

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


$0$7(85%22.6
6:/*XLGHV 1LIW\(=
*XLGHWR
:RUOGZLGH (FKR/LQNŒ
2SHUDWLRQ
/LVWHQLQJ
7KLV LGHDO UHIHU
*XLGH HQFH IRU WKRVH JHW
86
WK(GLWLRQ WLQJ LQWR (FKR/LQN 5HSHDWHU
E\-RKQ
VKRZVKRZWRPDNH 0DS%RRN
FRQWDFWVXVLQJ\RXU
)LJOLR]]L WKHGLWLRQ
FRPSXWHU RU '70)
&RPLQJ'HF HTXLSSHGWUDQVFHLY
865*

HUV 7KH 3(5)(&7 WUDYHOLQJ FRPSDQLRQ 5RDG
‡ 6WUDLJKW IRUZDUG PDSV VKRZ PDMRU KLJKZD\V DQG FLWLHV LQ
1HZ DQG H[ VLPSOHH[SODQDWLRQVIRUERWKEHJLQQLQJ H[ HYHU\VWDWH$PDWHXUUDGLRUHSHDWHUIUHTXHQ
SDQGHG WK (GL SHULHQFHGXVHUV FLHVDUHLQFOXGHG7KLVLVDPXVWIRUWUXFNHUV
WLRQSURYLGHVFRPSUHKHQVLYHSURJUDPJXLGHWR ‡ 9RLFHRYHU,QWHUQHWWHFKQRORJ\ DQGWUDYHOHUV(QKDQFHGPDSVSURYLGHJUHDW
DOORIWKHZD\VSURJUDPVFDQEHKHDUG´OLYHµ ‡ (FKR/LQNFRPSXWHUXVHUVVLPSOH[OLQNVDQG KLJKZD\GHWDLO+523ULFH
RQGHPDQG :L)L SRGFDVW VDWHOOLWH LQWHUQHW UHSHDWHUV
GLJLWDO DQG RI FRXUVH DQDORJ $0 )0 DQG ‡ ,QVWDOOLQJDQGXVLQJ(FKR/LQNVRIWZDUH
6:6SLUDOERXQGWRRSHQLQDÁDWHDV\WRXVH ‡ &DOOVLJQYDOLGDWLRQDQGDXWKHQWLFDWLRQ +DP$GYHQWXUHV
IRUPDW+523ULFH ‡ 5)/LQNWUDQVFHLYHUUHTXLUHPHQWV

1LIW\
‡ (VWDEOLVK5)(FKR/LQNVLPSOH[DQGUHSHDWHU
QRGHV 7KH5RDG
‡ &UHDWHDQRGHE\LQWHUIDFLQJ\RXUWUDQVFHLYHU
WRDFRPSXWHU
+RPH
5DGLR ‡ &RQÀJXUH(FKR/LQN
VV\VRSVHWXSPHQXV
E\$QGUHZ
0RQLWRULQJ ‡ $GG(FKR/LQNFDSDELOLW\WRDUHSHDWHU %D]H
*XLGH ‡ 1XPHURXVFOHDULOOXVWUDWLRQV 'R \RX ORYH DQ
&RYHULQJWR0+] +523ULFH DGYHQWXUH" (V
WKLV UHIHUHQFH WR VKRUW SHFLDOO\ ZKHQ LW
ZDYH SROLFH ÀUH DYLD
WLRQ PDULQH UDGLR DQG
46/+ROGHUV LQFOXGHV KDP UD
GLR LQ HPHUJHQF\
PRUH FRPELQHV VKRUW FRPPXQLFDWLRQV
ZDYH OLVWHQLQJ DQG 9+) 4XLFN9LHZ ,QWHUQDWLRQDO G L V D V W H U V  D Q G
8+)VFDQQLQJLQWRRQH +523ULFH +523ULFH SHULO" 'R \RX NQRZ DQ\ \RXQJ DGXOWV ZKR
JXLGH8VHLWDVDWXQLQJ PLJKWEHLQWHUHVWHGLQUDGLR":RXOG\RXOLNH
JXLGH DQG IRU SURJUDP WROHDUQPRUHDERXWGLVDVWHUSUHSDUHGQHVV"
PLQJ WKH VFDQQLQJ FDSDELOLWLHV RI \RXU UDGLR (QWHUWDLQLQJDQGLQIRUPDWLYHIRU\RXQJDQGROG
+DV LQIRUPDWLRQ XVHIXO IRU PRQLWRULQJ UDGLR DOLNHWKLVZHOOUHYLHZHGERRNZLOOKRRN\RX
VHUYLFHV LQFOXGLQJ ,QWHUQDWLRQDO VSDFH VWDWLRQ IURPWKHEHJLQQLQJDQGWDNH\RXRQDER\DQG
IUHTXHQFLHVDQG1$6$UHEURDGFDVWLQJ$PD IDWKHUҋVWUHNEDFNIURPWKHZLOGHUQHVVWRWKH
WHXU UDGLR +) '; SURSDJDWLRQ EHDFRQV SOXV EURNHQFLW\ZKHUHWKHUHVWRIWKHIDPLO\ZDLWV
0DULWLPH DQG RWKHU SRSXODU HPHUJHQF\ DQG XQDZDUHRIWKHRWKHUGDQJHUOXUNLQJRQWKHLU
FRPPXQLFDWLRQ QHWV DUH FRYHUHG :HE 3DJH GRRUVWHS+523ULFH
85/ҋV DUH SURYLGHG WR VLWHV RIIHULQJ FXUUHQW
EURDGFDVWVFKHGXOHV+523ULFH
3HUVRQDO(PHUJHQF\
&RPPXQLFDWLRQV
6FDQQHU%RRNV E\$QGUHZ
%D]H
7ZR:D\
5DGLRV 'R \RX ZDQW WR
 EH SUHSDUHG IRU
6FDQQHUV +DP0DJD]LQHV WKH QH[W SRZHU
RXWDJHRUDQDWX
IRU &4 &40RQWKO\ UDOGLVDVWHU"7KLV
'XPPLHV 467 4670RQWKO\ ERRN LV ZULWWHQ
IRU HYHU\RQH ²
+523ULFH
QR UDGLR H[SHU
 &43XEOLFDWLRQV WLVH UHTXLUHG ,W
ZLOO WHOO \RX KRZ
$5& $PDWHXU5DGLR&DOHQGDU WR PDNH \RXU RZQ UHDOLVWLF VLPSOH HPHU
+52VWRFNVPDQ\ERRNVZLWK 8%$8%$8 8QGHUVWDQGLQJ%XLOGLQJ  JHQF\FRPPXQLFDWLRQSODQ:KHQWKHFKLSV
IUHTXHQFLHVIRUORFDOLWLHVDURXQG  8VLQJ%DOXQV 8QXQV DUHGRZQZKDWZLOO\RXGRLI\RXUFHOOSKRQH
WKHFRXQWU\&RQWDFW\RXUQHDUHVW /02$ /HZ0F&R\RQ$QWHQQDV ODQGOLQH DQG WKH ,QWHUQHW GRQҋW ZRUN"7KLV
+52IRUGHWDLOV +)$17+% +)$QWHQQD+DQGERRN ERRNKDVWKHDQVZHU+523ULFH

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


$55/%22.6
7KH$55/+DQGERRN
IRU5DGLR$PDWHXUV
6WXG\:LWK$55/
8VH$55//LFHQVH0DQXDOV 7HFK4 $
ZLWK$55/2QOLQH
7KLVWKHGLWLRQRI ([DP5HYLHZIRU+DP5DGLR 7DNHDTXLFNHDV\SDWKWR\RXU
7KH $55/ +DQG ÀUVW KDP OLFHQVH 3DVV WKH
ERRN LV \RXU FRP +DP TXHVWLRQ 7HFKQLFLDQ FODVV
SOHWHJXLGHWRUDGLR 5DGLR H[DPLQDWLRQ E\ VWXG\LQJ WKLV
H[SHULPHQWDWLRQ TXHVWLRQSRROZLWKEULHIFOHDU
GLVFRYHU\ DQG LQ /LFHQVH H[SODQDWLRQV
QRYDWLRQ ,W LV 7KH 0DQXDO WK(GLWLRQ
+DQGERRNZULWWHQ
,QFOXGHV WKH ODW
E\ UDGLR DPDWHXUV (;75$4 $
H V W  F R P S O H W H
IRUHYHU\RQHZLWKD
TXHVWLRQ SRRO *(14 $ WKHG 
GHVLUH WR DGYDQFH ZLWKDQVZHUNH\
WKHSXUVXLWRIZLUHOHVVWHFKQRORJ\ DQGH[SODQDWLRQV )5$5)&&5XOHV 5HJV
.H\7RSLFV IRU XVH WR SDVV 
‡5DGLRHOHFWURQLFVWKHRU\DQGSULQFLSOHV WKH TXHVWLRQ OLFHQVH WHVW 'HVLJQHG
‡&LUFXLWGHVLJQDQGHTXLSPHQW IRU VHOIVWXG\ RU FODVVURRP XVH 7DNH
‡5DGLRVLJQDOWUDQVPLVVLRQDQGSURSDJDWLRQ DV PDQ\ UDQGRPO\JHQHUDWHG SUDFWLFH
‡'LJLWDODQGDQDORJPRGXODWLRQDQGSURWRFROV H[DPVDV\RXZDQW'LVFRYHUWKHXQLTXH
‡$QWHQQDVDQGWUDQVPLVVLRQOLQHV PL[RIWHFKQRORJ\SXEOLFVHUYLFHFRQYH
&RQVWUXFWLRQSUDFWLFHV QLHQFHDQGIXQWKDWPDNHXSKDPUDGLR 5DGLRVWR*R
6RIWFRYHU+523ULFH $ QHZ VSLUDO ERXQG HGLWLRQ LV DYDLODEOH 7KHUHLVDZHDOWKRIIHD
VHSDUDWHO\+523ULFH WXUHV LQ WKH ODWHVW KDQG
$55/+DQGERRN 6L[9ROXPH6HW 6SLUDO%RXQG KHOGV0DQ\RIWKHIHDWXUHV
6L[YROXPHV7KH$55/+DQGERRNLVGLYLGHGLQWR DUH KLGGHQ DQG LW LV QRW
VL[VRIWFRYHUYROXPHVVKULQNZUDSSHGWRJHWKHU
*HQHUDO HDV\WRJHWIXOOEHQHÀWIURP
+523ULFH &ODVV \RXULQYHVWPHQW7KLVSXEOLFDWLRQLVDQHVVHQWLDO
+DP JXLGH+523ULFH
&RXUVH
2SHUDWLQJ <RXU)LUVW
0DQXDO 7KHIDVWHVW
$PDWHXU5DGLR
ZD\WR*HQ
WK(GLWLRQ HUDO&ODVV +)6WDWLRQ
(YHU\WKLQJ \RX QHHG +HUHLVSUDFWLFDODGYLFHRQ
WR NQRZ DERXW KDP /LFHQVH
FKRRVLQJ\RXUÀUVWUDGLRDQ
UDGLR RSHUDWLQJ )RXU WK(GLWLRQ WHQQDFRPSXWHUVRIWZDUH
VHFWLRQV%DVLF6WDWLRQ &RYHUV DOO PDWHULDO \RX QHHG WR SDVV DQG DFFHVVRULHV ([SODLQV
DQG 2SHUDWLQJ 7HFK WKH*HQHUDO&ODVV/LFHQVHH[DP(DFK WKH EHVW ZD\ WR VHW WKHP
QLTXHV 5DGLR &OXEV WRSLF LV GLYLGHG LQWR ELWHVL]HG OHVVRQV XSKRZWRVDIHO\KRRNXSWR
DQG 3XEOLF 6HUYLFH ZLWK FRORUIXO LOOXVWUDWLRQV FRYHULQJ SUR SRZHUZKLOHSURWHFWLQJ\RXU
2Q$LU$FWLYLWLHVDQG5DGLRVSRUW5HVRXUFHVIRU FHGXUHVSUDFWLFHVUHJXODWLRQVFRPSR JHDU([SODLQVZKHUHWRSXW\RXUSULRULWLHV
WKH$FWLYH+DP+523ULFH QHQWVFLUFXLWVHTXLSPHQWSURSDJDWLRQ +523ULFH
HOHFWULFDOVDIHW\DQGPRUH
6SLUDO%RXQGRQO\ 0RUVH&RGH2SHUDWLQJIRU
$PDWHXU5DGLR
([WUD&ODVV/LFHQVH 'RQҋW-XVW/HDUQ
0DQXDO 0RUVH&RGH
5HYLVHG 0DVWHU,W
WK(GLWLRQ ,I\RXDUHQHZWR$PDWHXU
2XU H[SHUW LQ 5DGLR RU KLJK IUHTXHQF\
VWUXFWLRQ OHDGV +)  RSHUDWLRQ RU HYHQ
\RX WKURXJK DOO LI \RXҋYH EHHQ RSHUDWLQJ
WKH NQRZOHGJH +) SKRQH DQG 577< EXW
QHHGHG WR SDVV ZHUHUHOXFWDQWWRWU\0RUVH
WKH TXHV FRGH WKLV ERRN LV HVSH
$55/0$36 WLRQ([WUD&ODVV FLDOO\ IRU \RX ,W LV \RXU
0DS 1RUWK$PHULFD$]LPXWKDO H[DP UXOHV LQWURGXFWLRQ LQWR WKH IDV
0DS 1RUWK$PHULFD5RELQVRQ VSHFLÀF RSHUDWLQJ VNLOOV DQG PRUH DG FLQDWLQJ ZRUOG RI UDGLR FRPPXQLFDWLRQ E\ 0RUVH
0DS 1RUWK$PHULFD
YDQFHG HOHFWURQLFV WKHRU\ 7R XSJUDGH FRGH QRZ VLPSO\ FDOOHG ´&:µ ,W GLVFXVVHV KRZ
*5,'$7/$6 *ULG/RFDWRU$WODV
\RXPXVWDOUHDG\KROGD*HQHUDO&ODVV WRJHWVWDUWHGLQWKHKREE\WKHDGYDQWDJHVRIXV
*5,'0$3 *ULG/RFDWRU0DS
OLFHQVHWKHQSDVVDZULWWHQH[DPLQDWLRQ LQJ0RUVHFRGHKRZWRVHWXS\RXUVWDWLRQIRU&:
$55//,67,1*6 $ QHZ VSLUDO ERXQG HGLWLRQ LV DYDLODEOH DQGKRZWRDGMXVW\RXU0RUVHFRGHNH\/HDUQWKH
';&& /,672IÀFLDO$55/';&&/LVW VHSDUDWHO\ SURWRFROVDQGWHFKQLTXHVXQLTXHWR&:RSHUDWLQJ
/% /RJ%RRN +523ULFH DQGJDLQWKHFRQÀGHQFHWRWU\RXW\RXUQHZVNLOOV
5' 5HSHDWHU'LUHFWRU\ 6SLUDO%RXQG RQWKHDLU+523ULFH

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


$55/%22.6)25$0$7(856
8QGHUVWDQGLQJ $QWHQQDV 5DVSEHUU\3L
<RXU$QWHQQD :RUNVKRS0DQXDO
$QDO\]HU $55/$QWHQQD%RRN
WK(GLWLRQ 7KH5DVSEHUU\3L0DQXDO
$UDGLRDPDWHXU
VJXLGH LVWKHSHUIHFWLQWURGXFWLRQ
7KH $55/ $QWHQQD
WR XQGHUVWDQGLLQJ DQ %RRNIRU5DGLR&RP WR WKH DIIRUGDEOH VPDOO
WHQQDDQDO\]HUV PXQLFDWLRQVLVDVLQJOH FRPSXWHU &RYHUV WKH
+523ULFH UHVRXUFHFRYHULQJDQ 5DVEHUU\ 3L  PRGHO
WHQQD WKHRU\ GHVLJQ %  ,W LV DLPHG DW WKRVH
DQGFRQVWUXFWLRQDQG VZLWFKLQJ RQ WKHLU 3L IRU
SUDFWLFDO WUHDWPHQWV WKHÀUVWWLPHJXLGLQJWKHP
+DQGV2Q DQG SURMHFWV 7KLV WKURXJKWKHIXOOSURFHVVRI
5DGLR ERRN FRQWDLQV HY VHWXS DQG FRQÀJXUDWLRQ
HU\WKLQJ \RX QHHG WR
([SHULPHQWV XQGHUVWDQG KRZ UDGLR VLJQDOV SURSDJDWH
7KH PDQXDO WKHQ LQWURGXFHV YDULRXV DVSHFWV RI
FRPSXWLQJ DQG SURJUDPPLQJ DQG SURYLGHV D
KRZ DQWHQQDV ZRUN DQG KRZ WR FRQVWUXFW
7KHVH H[SHULPHQWV YDULHW\RIUHFLSHVWRGHPRQVWUDWHWKHDFFODLPHG
\RXURZQDQWHQQDV\VWHP8VH7KH$55/
GHYLVHG E\ + :DUG $QWHQQD%RRNWREXLOGKXQGUHGVRIDQWHQQD YHUVDWLOLW\ RI WKH 5DVSEHUU\ 3LҋV KDUGZDUH DQG
6LOYHU 1$; ILUVW GHVLJQVGLSROHVYHUWLFDOVORRSVEHDPVDQG VRIWZDUH+523ULFH
DSSHDUHG LQ 467ҋV PRUH6RIWFRYHU+523ULFH
PDJD]LQHҋV ´+DQGV %HVWRI7KH'RFWRU,V,Q
2Q 5DGLRµ FROXPQ /LPLWHG(GLWLRQ
,Q9ROXPHRIWKLVVHULHV
IURP7KLVERRNFRPELQHVWKHRULJLQDO )RXU9ROXPH6HW ZHҋYHJDWKHUHGWKHPRVW
9ROXPHVDQG²FRYHULQJDZHDOWKRIWRSLFVGH  7KH $55/ $QWHQQD IUHTXHQWO\ DVNHG TXHV
VLJQHGWRHGXFDWHWRGD\ҋVUDGLRH[SHULPHQWHUV %RRNKDVEHHQGLYLG WLRQV DV ZHOO DV -RHOҋV
DQGLQVSLUHRWKHUVZKRZDQWWROHDUQZKDWPDNHV HGLQWRIRXUYROXPHV GHWDLOHGDQVZHUVRQWKH
WKHLUUDGLRVZRUN(YHQVHDVRQHGH[SHUWVZLOO DQG LQFOXGHG LQ D WRSLFRIDQWHQQDV\VWHPV
HQFRXQWHUQHZDSSURDFKHVWRSUDFWLFDOPHWKRGV KDUG VOLSFDVH ER[ 0DQ\ DQVZHUV LQFOXGH
QHZH[SODQDWLRQVIRUIDPLOLDUWRSLFVDQGQHZ  SDJHV GLYLGHG FRPSUHKHQVLYH LOOXVWUD
LGHDVWKDWZLOOHQKDQFH\RXUXQGHUVWDQGLQJRI LQWR PRUH PDQDJH WLRQV
WKHUDGLRDUW+523ULFH DEOH YROXPHV $ KDQGVRPH KDUG VOLSFDVH +523ULFH
IRUHDV\VWRUDJHDQGDFFHVV)RXUYROXPHV
025(7(&+1,&$/%22.6 FRYHULQJ PDMRU WRSLF DUHDV 1HZ DQG WLPH
(05)' ([SHULPHQWDO0HWKRGVLQ5)'HVLJQ WHVWHG DQWHQQD SURMHFWV DFURVV QHDUO\ DQ\ 3RUWDEOH
+. +LQWVDQG.LQNV WKHG
/%' /RZ%DQG';LQJ WKHG
IUHTXHQF\RUPRGH$GRZQORDGFRGHWRLQ $QWHQQD
VWDOODIXOO\VHDUFKDEOHGLJLWDOHGLWLRQRQWKH
5)( 5)([SRVXUHDQG<RX
SULQWHGERRN+523ULFH &ODVVLFV
5), 5DGLR)UHTXHQF\,QWHUIHUHQFH )RUDPDWHXUVZKRDUHXQDEOH
0DJLF%DQG WRLQVWDOOSHUPDQHQWRXWGRRU

0RUH$UGXLQR $QWHQQDV DQWHQQDVDWKRPHSRUWDEOH


LQVWDOODWLRQV DUH RIWHQ WKH
3URMHFWVIRU RQO\ ZD\ WKH\ FDQ JHW RQ
WKH DLU 7KHUH DUH DOVR DPDWHXUV ZKR VLPSO\
+DP5DGLR 'HVLJQHG IRU UDGLR HQMR\ RSHUDWLQJ RXWGRRUV LQ QDWXUH )RU WKHP
7KLV ERRN LQFOXGHV  DPDWHXUVZKRZDQWWR SRUWDEOH DQWHQQDV DUH QHFHVVLWLHV  +52
FRPSOHWHO\ QHZ SUDFWL GLVFRYHUWKHP\VWHULHV 3ULFH
FDO DQG IXQFWLRQDO $U RI WKH ´PDJLF EDQGµ
GXLQR SURMHFWV (DFK 6L[PHWHUVLVDEDQGIXOORIVXUSULVHV:KHQ :RUN7KH:RUOG
SURMHFWLVFRPSOHWHDQG \RXOHDVWH[SHFWLWPHWHUVFDQVXGGHQO\ ZLWK
IXQFWLRQDODVLVEXWURRPKDVEHHQOHIWIRU\RX RSHQIRUFRQWDFWVRYHUKXQGUHGVDQGHYHQ
WKRXVDQGVRIPLOHV+523ULFH
-7DQG-7
WR DGG SHUVRQDO WRXFKHV DQG HQKDQFHPHQWV
7KDWҋVSDUWRIWKHIXQRIWKH$UGXLQRDQG2SHQ ([SORUH D 1HZ :RUOG RI
6RXUFHFRPPXQLWLHV²EXLOGLQJRQWKHZRUNRI 'LJLWDO&RPPXQLFDWLRQ<RX
RWKHUVDQGVKDULQJ\RXUGHVLJQVIRURWKHUVWR
0DJQHWLF/RRS GRQҋW QHHG KLJK SRZHU RU
OHDUQPRGLI\DQGLPSURYH $QWHQQD ODUJH DQWHQQDV ZLWK -7
6RPHSURMHFWVLQFOXGH RU-76KRZV\RXKRZWR
,W VWDUWV RXW E\ SURYLGLQJ DVVHPEOHDQHIIHFWLYHVWDWLRQDQGFRQÀJXUHWKH
‡ $XWRRQRIIPRELOHSRZHUFRQWURO
D WKHRUHWLFDO GHVFULSWLRQ VRIWZDUH+523ULFH
‡ 6WDWLRQSRZHUPRQLWRU
RIPDJQHWLFORRSDQWHQQD
‡ $&FXUUHQWPRQLWRU
‡ /RDGWHVWHU
0/$  LQFOXGLQJ D FDO 3RUWDEOH2SHUDWLQJIRU
FXODWLRQ H[DPSOH 1H[W LW
‡ 9RLFHPHPRU\NH\HU
GHVFULEHVVHYHUDOW\SHVRIXQLTXHPDJQHWLF $PDWHXU5DGLR
‡ :LUHOHVVUHPRWHFRD[VZLWFK
ORRSDQWHQQDV7KHÀQDOSDUWLVGHYRWHGWR
‡ :LUHOHVVUHPRWHWHOHPHWU\ $QHZJHQHUDWLRQRIFRP
WKHLQGHSHQGHQWHYDOXDWLRQRIPDJQHWLFORRS
‡ <DHVXURWDWRUFRQWUROOHUPRGLÀFDWLRQ SDFWIXOOIHDWXUHGSRUWDEOH
DQWHQQDV+523ULFH
‡ WR0+]''69)2 UDGLRVFRPELQHVZLWKPRG
‡ $QWHQQD6:5DQDO\]HU 025($55/$17(11$%22.6 HUQ EDWWHU\ WHFKQRORJ\ WR
‡ 0HWHU453&:WUDQVFHLYHU $&92/ $QWHQQD&RPSHQGLXP9RO PDNHLWHDVLHUWKDQHYHUWR
‡ 0HWHU453-7WUDQVFHLYHU $&92/ $QWHQQD&RPSHQGLXP9RO VHWXS\RXUVWDWLRQ
+523ULFH 56*%6$ 6WHDOWK$QWHQQD%RRN +523ULFH

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


),1'$5(3($7(5 ),1'$+$0
$55/

5HSHDWHU +DP&DOOŒ'9'
+523ULFH
'LUHFWRU\ 7KHÀUVWDQGRQO\GDWDEDVHZLWKPRUHWKDQ
7KH  5HSHDWHU 'LUHFWRU\ FDOOVLJQVLWLVWKHPRVWFRPSOHWHFDOOVLJQGDWDEDVH
LQFOXGHV´FURZGVRXUFHGµOLVWLQJV DYDLODEOH,QFOXGHVPRQWKVRILQWHUQHWXSGDWHVDQG
FRQWULEXWHG E\ XVHUV UHSHDWHU +DP&DOOQHW*ROG3DVVZRUGIRUIXOODFFHVVWR+DP
RZQHUVDQGYROXQWHHUIUHTXHQF\ &DOOQHWZHEVLWHLQFOXGLQJFDOOVLJQVHDUFKDGYDQFHG
FRRUGLQDWRUV7KLVPHDQVPRUH VHDUFKDQG';6SRWV
OLVWLQJVDQGXSGDWHGPRUHRIWHQ3XEOLFVHUYLFHYROXQWHHUV ‡ 0RUHWKDQ86DQGLQWHUQDWLRQDO ‡ ,QVWDOOWRKDUGGULYHRUUXQIURP'9'
LQFOXGHWKLVSULQWHGGLUHFWRU\ZLWK\RXUHPHUJHQF\ҊJRNLWҋ OLVWLQJV ‡ &RXQWU\ÁDJ PDSIRUHDFKFDOOVLJQ
‡ HQWULHVZLWKOLVWLQJVIRU86DQG&DQDGD ‡ HPDLODGGUHVVHVSKRWRV ‡ 6HDUFKE\FDOOVLJQFODVVQDPHVWUHHW
‡ 'LJLWDOUHSHDWHUVLQFOXGLQJ)0)86,21''7$5'05 DQG46/FDUGVYDQLW\FDOOVDQG DGGUHVVFLW\VWDWHSRVWDOFRGHFRXQW\
1;'1DQG3V\VWHPV 46/PDQDJHUV FRXQWU\RU46/PDQDJHU
‡ 9+)8+)DQGPLFURZDYHEDQGSODQVLQFOXGHG ‡ ,QFOXGHVFDOOVLJQFODVVQDPHDGGUHVV ‡ 'RXEOHFOLFNRQHPDLODGGUHVVWRVHQG
 6SLULDO´OD\ÁDWµELQGLQJ+523ULFH OLFHQVHLVVXHDQGH[SLUDWLRQGDWHVELUWK HPDLORUDZHEDGGUHVVWRYLVLWLW
GDWHODWORQJJULGVTXDUHFRXQW\WLPH ‡ ,QWHUDFWLYHZRUOGPDSGLVSOD\
$55/3HULRGLFDOV'9' ]RQHDUHDFRGH
‡ &DOFXODWHVKHDGLQJDQGGLVWDQFHVKRUW
‡ 3ULQWVPDLOLQJODEHOVRUDOOLQIRUPDWLRQ
‡ 6XSSRUWHG E\ PRUH WKDQ  ORJJLQJ
DQGORQJSDWK SURJUDPVDQGVRIWZDUHSDFNDJHV

3HULRGLFDOV
'9'6HWV 5DGLR$PDWHXU&DOOERRN
&'520
6+523ULFH
$55/ҋV SRSXODU MRXUQDOV DUH
7KH5DGLR$PDWHXU&DOOERRNRQ&'520FRQWDLQV
DYDLODEOH RQ D FRPSDFW IXOO\
WKH FDOOVLJQ DQG DGGUHVV LQIRUPDWLRQ RI WKH $PD
VHDUFKDEOH'9'(YHU\ZRUG
WHXUV 5DGLR VWDWLRQV DOO RYHU WKH ZRUOG :LWK PRUH
DQGSKRWRSXEOLVKHGWKURXJKLVLQFOXGHG
WKDQOLFHQVHGUDGLRDPDWHXUVLWOHWV\RX
‡ 4677KHRIÀFLDOPHPEHUVKLSMRXUQDORI$55/
ÀQGWKHGDWD\RXDUHORRNLQJIRULQDIDVWDQGHDV\
‡ 1&-1DWLRQDO&RQWHVW-RXUQDO
PDQQHU7KH &DOOERRN LV GLYLGHG LQ WZR GDWDEDVHV
‡ 4(;)RUXPIRU&RPPXQLFDWLRQV([SHULPHQWHUV
7KH86DQGWKHLQWHUQDWLRQDOGDWDEDVH,QWKH86
6HDUFKWKHIXOOWH[WRIHYHU\DUWLFOHE\HQWHULQJWLWOHVFDOO GDWDEDVH \RX FDQ VHDUFK E\ GLIIHUHQW ÀHOGV FDOO QDPH FLW\ =,3 RU FRXQW\  ,Q DG
VLJQVQDPHVDOPRVWHYHU\ZRUG6((HYHU\ZRUGSKRWR GLWLRQWKHUHLVDWH[WVHDUFKIDFLOLW\8VHWKH6HDUFKPHQXWRVWDUWWKHVHDUFK,QWKH
LQFOXGLQJFRORULPDJHV GUDZLQJDQGWDEOHLQWHFKQLFDODQG LQWHUQDWLRQDOGDWDEDVH\RXFDQVHDUFKE\FDOOVLJQRUE\WH[WVWULQJ
JHQHUDOLQWHUHVW IHDWXUHV FROXPQV DQG SURGXFW UHYLHZV
SOXV DOO DGYHUWLVHPHQWV  3ULQW ZKDW \RX VHH RU FRS\ WR %218686%GULYHYHUVLRQ7KHZLGHO\SRSXODU5DGLR$PDWHXU&DOOERRNLVQRZDYDLO
RWKHUDSSOLFDWLRQV5HTXLUHV$GREH$FUREDWŒ5HDGHUD DEOHRQD*%ÁDVKGULYH7KLVEDPERRHFRIULHQGO\ÁDVKGULYHIHDWXUHVDPDJQHWLF
IUHHGRZQORDGIURPZZZDGREHFRP)RU:LQGRZVDQG FDS3HUIHFWIRU$PDWHXU5DGLRRSHUDWRUVZKRXVHQHWERRNVRURWKHUSRUWDEOHGHYLFHV
0DFLQWRVKV\VHPV+523ULFH ZKLFK GRQҋW KDYH D &'520 GULYH )UHH ZLWK &'520 SXUFKDVH 6\VWHP 5HTXLUH
PHQWV:LQGRZV;39LVWDRU
6RIWZDUHLVVROGRQDQRQUHWXUQDEOHEDVLV$Q\
VRIWZDUHSUREOHPVZLOOEHUHVROYHGXQGHUWKHWHUPVRI
WKHPDQXIDFWXUHU
VZDUUDQW\

+52([WHQGHG:DUUDQW\3URJUDP
&DWDORJ3ULFHV +52ҋV2SWLRQDO([WHQGHG:DU
UDQW\3URJUDPH[WHQGVWKHRULJLQDO
SXUFKDVHURIWKHUHOHYDQWSURGXFW V 
1HLWKHUWKHEHQHÀWVQRUFRYHUDJH
+52GLVFRXQWSULFHVVKRZQDUHFXUUHQWDVRI PDQXIDFWXUHUҋVOLPLWHGZDUUDQW\ RIWKLVSURJUDPDUHDVVLJQDEOHRU
6HSWHPEHU   ZKHQ WKLV FDWDORJ ZDV RQPRVW$PDWHXU5DGLRVEXWQRW WUDQVIHUDEOHDQGYHULÀFDWLRQWKDWWKH
DVVHPEOHG IRUDWWHQGDQWDFFHVVRULHV OLNH ([WHQGHG:DUUDQW\3URJUDPZDV
EDWWHULHVPLFURSKRQHVVSHDNHUV SXUFKDVHGSURGXFWSXUFKDVHGDWH
3ULFHVFKDQJHERWKXSDQGGRZQ3OHDVHEH HWF $SHULRGRIRQH  RUWZR   DQGVHULDOQXPEHUVPD\EHUHTXLUHG
VXUHWRFDOORQHRIRXUWROOIUHHQXPEHUVRU DGGLWLRQDO\HDUVFDQEHVHOHFWHG RIWKHEX\HU
FKHFNRXU:HESDJHIRUWKHODWHVWSULFHV:H DQGDOOOLPLWDWLRQVH[FHSWLRQVDQG
H[FOXVLRQVRIWKHRULJLQDOPDQXIDF 7KH+52([WHQGHG:DUUDQW\3UR
DW+52VWULYHWRRIIHUWKHPRVWFRPSHWLWLYH JUDPVWDUWVDWWKHFRQFOXVLRQRIWKH
WXUHUҋVZDUUDQW\DSSO\GXULQJWKLV
SULFHVLQWKHLQGXVWU\RQDIXOOOLQHRITXDOLW\ QHZSURGXFWRULJLQDOZDUUDQW\SHULRG
H[WHQGHGSHULRG
KDPUDGLRSURGXFWV DQGDOO([WHQGHG:DUUDQW\FODLPV
7KH+52([WHQGHG:DUUDQW\ PXVWEHSURFHVVHGE\+52GLUHFWO\
0DQ\ PDQXIDFWXUHUV RIIHU FRXSRQV RU 3URJUDPPXVWEHSXUFKDVHGZLWKLQ YLDDQ\RQHRIRXUVWRUHORFDWLRQV
VLPLODUSURPRWLRQV&DOORUFKHFNRXU6HFXUH GD\VRIWKHGDWHWKHRULJLQDO
:HE3DJHDWKWWSVZZZKDPUDGLRFRPIRU SURGXFW V ZDVSXUFKDVHGDQG )XUWKHUGHWDLOVDUHDYDLODEOHRQOLQHDW
LVRQO\DYDLODEOHWRWKHRULJLQDO ZZZKDPUDGLRFRP
WKHODWHVWSURPRWLRQV

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


Volume 1: Antennas for Space
Antenna Fundamentals Communications
Antenna Fundamentals VHF, UHF and Microwave
Dipoles and Monopoles Antenna Systems
The Effects of Ground Portable Antennas
Radio Wave Propagation Stealth and Limited Space
Antennas
Loop Antennas
Mobile and Maritime
Multielement Arrays HF Antennas
Antenna Modeling Receiving and Direction-
Volume 2: Finding Antennas
Antennas for LF/MF/HF Volume 4:
Single-Band MF and HF Antennas Transmission Lines
Multiband HF Antennas
and Building Antenna
Systems, and Index
HF Yagi and Quad Antennas Transmission Lines
Broadside and End-Fire Arrays Transmission Line System
Long-Wire and Traveling-Wave Techniques
Antennas Antenna Materials and
HF Antenna System Design Construction
Volume 3: Building Antenna Systems
Antennas for VHF through and Towers
Microwave and Specialty Antenna and Transmission
Antennas Line Measurements
VHF, UHF and Microwave Antenna Antenna System
VHF and UHF Mobile and Troubleshooting
Rover Antennas

ARRL Antenna Book ARRL Antenna Book


Four-Volume Boxed Set Softcover Edition
Retail $64.95 Retail $49.95
Study with the best!
License Study Materials by

TECHNICIAN CLASS N EW ! GENERAL CLASS EXTRA CLASS


Technician Class book General Class book Extra Class book
for the 2018-2022 entry Upgrade to the HF bands Go to the top with Gordo!
level exam! Gordo with Gordo & W5YI! 2016-2020 book includes
reorganizes the Q&A into Gordo’s manual for all Element 4 Q&A
logical topic groups for 2019-2023 reorganizes all reorganized into logical
easy learning! Key 454 questions into logical topic groups. Gordo’s fun,
words are highlighted topic groups for easier educational explanations
in his explanations to learning. His explanations with highlighted
help you understand the include highlighted keywords, and great
material for test success. key words to help you memory tricks for those
Web addresses for remember the material for tough theory questions!
more than 125 helpful, test success. Wait ‘til you meet “Eli the
educational sites. W5Y GWGM-19 $24.95 Ice Man!”
Includes On The Air CD W5Y GWEM-16 $29.95
demonstrating Tech privileges. W5Y GWTM-18 $24.95
General Book & Software Package Extra Book & Software Package
Tech Book & Software Package Study at your computer and take practice exams. Study at your computer and take practice exams
Gordo’s book with W5YI software allows you to Software includes explanations from Gordo’s book, as the W5YI software scores your results and
study at your computer and take practice exams. scores your results and highlights areas that need highlights areas that need further study. Includes
Explanations from Gordo’s book are on the software further study. Includes free Part 97 Rule Book. explanations from Gordo’s book. Free Part 97 Rule
– answer a question wrong and his explanation W5Y GUS-19 $34.95 Book. W5Y ECS-16 $44.95
appears to reinforce your learning. Includes free Part
97 Rule Book. W5Y NCS-18 $34.95 General Audio Course on CD Extra Audio Course on CD
General Theory Course recorded by Gordo is full of Extra Class Theory Course recorded by Gordo talks
Tech Audio Course on CD the sounds that bring ham radio to life! He talks you you through the difficult Element 4 theory to help
Welcome to Gordo’s classroom! Technician audio through the Element 3 theory to help you understand you understand the material and get you ready for
theory course recorded by Gordo talks you through the material and get you ready for your upcoming your upgrade to the top.
the Element 2 question pool. Follows the order of exam. On 4 audio CDs. W5Y GWGW-19 $29.95 On 6 audio CDs. W5Y GWEW-16 $44.95
his Technician Class book, and is full of the sounds
of ham radio operating excitement! An excellent Ham Operator Software has All Exams Getting Started in Electronics
study aid if you spend a lot of time in your car or Want to study at your computer by Forrest M. Mims
pick-up! On 4 audio CDs. W5Y GWTW-18 $29.95
without tying up your internet This is a complete electronics
connection? This value pack course in 128 pages! This
includes the Tech, General and famous electronics inventor
GROL + RADAR Extra class exams (Elements teaches you the basics, takes
Get your FCC commercial 2, 3, and 4) along with a free you on a tour of analog and
radio licenses and add Part 97 Rule Book. Software digital components, explains
valuable credentials includes Gordo’s answer how they work, and shows how
to your resume! explanations from his books! they are combined for various
GROL+RADAR includes Everything you need to go all applications. Includes circuit
the new FCC Element the way to the top! assembly tips and 100 electronic circuits you can
1 question pool for the build and test. Forrest has written dozens of books,
Marine Radio Operator Software only W5Y HOS-19 $29.95 hundreds of articles, invented scientific devices and
Permit (MROP), the Software with all 3 West Books W5Y HOSB-19 $94.95 travelled to the Amazon for NASA, and loves to
Element 3 pool for the share his knowledge with eager students!
Learn Morse Code for HF Fun! W5Y GSTD $19.95
General Radiotelephone
Operator License In-depth CD audio courses recorded by Gordo: Engineer’s Mini Notebooks
(GROL), and the Element 0-5 wpm on 8 audio CDs W5Y GW05 $39.95 These Mims classics teach you
8 pool for the RADAR Endorsement. Many hands-on electronics! Study and
employers require these licenses for jobs in marine, 0-5 wpm CW refresher
course on 2 audio CDs W5Y GWCT $14.95
build 100s of practical circuits
aero, safety, and municipal positions. Gordo and and fun projects. Each volume
his team have written clear explanations for all the 5-13 wpm on 8 audio CDs W5Y GW13 $39.95 contains several of his famous
Q&A to make studying for these exams educational 10-28 wpm on 8 audio CDs W5Y GW20 $39.95 Mini Notebooks. Terrific ideas for
and fun. If you’re an Extra Class ham, many of the science fair projects and a great
technical/math questions will look familiar to you. GW13 & 20 Special Order Only!
way to learn about electronics!
Fully-illustrated to aid your learning. Book includes Useful reference guides for your workbench!
a searchable CD-ROM with all FCC Rules for Parts Learn all about electronics Vol. 1: Timer, Op Amp, & Optoelectronic
2, 13, 23, 73, 80 and 87. W5Y GROL-09 $49.95 with our Basic books Circuits & Projects W5Y MINI-1 $12.95
GROL+RADAR book & software package Basic Electronics W5Y BELC $19.95 Vol. 2: Science & Communications
Enhance your learning experience using our practice Basic Digital Electronics W5Y BDIG $19.95 Circuits & Projects W5Y MINI-2 $12.95
exam software along with the GROL+RADAR
Basic Communications Vol. 3: Electronic Sensor Circuits
book. Software includes answer explanations from
Electronics W5Y BCOM $19.95 & Projects W5Y MINI-3 $12.95
the book – when you select a wrong answer, the
explanation from the book appears to reinforce your Vol. 4: Electronic Formulas, Symbols
learning. W5Y GRSP-09 $79.95 & Circuits W5Y MINI-4 $12.95

All W5YI software products are compatible with Windows operating systems.
HRO 4-19
3rd IMDR 110 dB*
RMDR 122 dB*
BDR 150 dB*

Performance
The most happy and sublime encounters happen in the worst
circumstances and under the harshest conditions.

Exceeding There are enthusiasts who know this all too well because of
their love of HF radio.

Expectations. Results born of certainty and not circumstance. Delivered


through impeccable performance. This is our offering to you.

"The Kenwood TS-890S has the highest RMDR of any radio I have ever measured."
- Rob Sherwood - NC0B - December 2018

HF/50MHz TRANSCEIVER Top-class receiving performance 4 kinds of built-in roofing filters

TS-890S
NEW
3 kinds of dynamic range make for top-class performance.

► Third order intermodulation Dynamic Range (3rd IMDR) 110dB*


500Hz / 2.7kHz / 6kHz / 15kHz (270Hz Option)

7 inch Color TFT Display


► Reciprocal Mixing Dynamic Range (RMDR) 122dB* ► Roofing frequency sampling band scope
► Blocking Dynamic Range (BDR) 150dB* ► Band scope auto-scroll mode
*Values are measured examples. (2kHz spacing:14.1 MHz, CW, BW 500 Hz, Pre Amp OFF) ► Multi-information display including filter scope
Clean and tough 100W output
► Full Down Conversion RX
Built-in high-speed automatic antenna tuner
► High Carrier to Noise Ratio 1st LO
► H-mode mixer 32-bit floating-point DSP for RX / TX and Bandscope
*: 2 kHz spacing measurement standard - Receiver frequency 14.2 MHz, MODE CW, BW 500 Hz, PRE AMP OFF

Customer Support: (310) 639-4200


ADS#03519
i 9 700
VHF / UHF SDR Transceiver New

Create Your OWN Band Opening

i7851
The Ultimate HF / 6M Transceiver

HF
i7610
HF / 6M SDR Transceiver

i7300
HF / 6M SDR Transceiver

m Inc. All
A othther trade
emmarks remain
OHUNL ^P[
^P[OV\[
OV [ UV[PJLV
VYVISPNH[PVU
D-STAR
ID-4100A
2M / 70CM Analog / Digital
Terminal and Access Point Modes

i7100
HF / 6M / 2M / 70CM
Analog / Digital

ID-5100A
2M / 70CM Analog / Digital

ID-51A PLUS2
2M / 70CM Analog / Digital
Terminal and Access Point Modes

ID-31A PL U S
70CM Analog / Digital
Terminal and Access Point Modes
New
iV86
ANALOG
2M Portable
Rugged, Powerful Handheld

‡ 7W RF output power for 144-148


‡ Powerful Audio - 1500mW AF output and the case
is acoustically optimized for maximum audio output
‡ IP54/MIL-STD-810G
‡ 2250mAh Li-Ion battery pack
‡ Traditional BNC Connector

i2300H
2M Mobile
i2730A
2M / 70CM Mobile
i R8600
10 kHz – 3 GHz*
i R 30 Wideband SDR Receiver
100 kHz - 3 GHz*
Wideband Portable Receiver

RX
*Frequenccy coverage e mayy vary. Refer to owner’s manual for exact specifications.
©2019 Icoom America a Inc.. The Icom logo is a registered trademark of Icom Inc. All other tr
IFQSPQF
FSUZPGUIFJS
SSFTQF
QFDUJWFPXOFST"MMTQFDJmDBUJPOTBSFTVCKFDUUPDIBOHFXJUIPVUOP
The Perfect Choice
Sophisticated Dual Band Digital Transceiver
Built to Commercial Grade Specifications

Advanced C4FM Digital

System Fusion Compatible

Combines FM and Digital Communications


with AMS (Automatic Mode Select)

Coordinated Group Operation


with Digital Group ID

700 mW of Loud, Clear Voice, Audio Output

5 Watts of Reliable RF Power


from a Compact Handheld Unit

Wide Band Receive Coverage 108 - 579.995 MHz

《Actual Size》
Rugged Construction
Meets IP54 (Dust & Water protection)
C4FM/FM 144/430MHz DUAL BAND
5W DIGITAL TRANSCEIVER
Large Multi-Color Operating Mode Indicator
F T-70DR Huge 1,105 Channel Memory
FTM-100DR
C4FM/FM 144/430 MHz DUAL BAND DIGITAL TRANSCEIVER

A Digital Mobile Transceiver for a New Age


Advanced C4FM Technology Makes Possible
a Wide Variety of Mobile Operations
Easy-to-read graphical interface for user-friendly operation
C4FM Digital with FM Friendly AMS
Bright multi-colored Mode/Status Indicator to visibly
and clearly inform the current state of the transceiver
Powerful 50 Watts RF output for VHF/UHF Amateur bands
Supports WIRES-X internet linking and worldwide
communication system for amateur radio
Establish an internet WIRES-X node station (Requires
optional HRI-200)

AMS
Automatic Mode Select

For latest Yaesu news, visit us on the Internet: http://www.yaesu.com


All products listed are in stock at all
Ham Radio Outlet Stores.
Please visit www.hamradio.com
for pricing and product details. American Built
and Reliable
Buy With Confidence
ABR Industries manufactures all assemblies in our Houston facility, guaranteeing quality
control from start to finish. Being a critical component of your system or station, it’s
important to know where and how your coax cable assemblies are built.
Not All Cable Assemblies are Created Equal... See the ABR Difference.

ABR213 (PN:2213A) ABR240F (PN:218XATC) ABR400F (PN:25400F)


Stranded Center, Solid PE Dielectric, 97% Copper Braid. Stranded Center, Gas Injected Foam Dielectric, Stranded Center, Gas Injected Foam Dielectric,
Non-contaminating Direct-Burial Ultra-Violet Resistant Jacket. 100% Foil + 95% TC Braid. 100% Foil + 95% TC Braid
W/SILVER-TEFLON PL259 & WEATHERPROOF HST each end. Non-contaminating Direct-Burial Ultra-Violet Resistant Jacket. Non-contaminating Direct-Burial Ultra-Violet Resistant Jacket.
Attenuation per 100ft Power Rating W/SILVER-TEFLON PL259 & WEATHERPROOF HST each end. W/SILVER-TEFLON PL259 & WEATHERPROOF HST each end.
0.6dB @ 10MHz 3.43kW Attenuation per 100ft Power Rating Attenuation per 100ft Power Rating
1.0dB @ 30MHz 1.95kW 0.9dB @ 10MHz 2.16kW 0.8dB @ 30MHz 2.77kW
1.4dB @ 50MHz 1.5kW 1.4dB @ 30MHz 1.24kW 1.1dB @ 50MHz 2.14kW
2.4dB @ 150MHz .83kW 2.1dB @ 50MHz 0.96kW 1.8dB @ 150MHz 1.22kW
4.5dB @ 450MHz .45kW 3.6dB @ 150MHz 0.55kW 3.3dB @ 450MHz 0.69kW
M ??;820C8>=L F>A:7>AB4201;4  40EHDCH2>0G5>A 6.3dB @ 450MHz 0.31kW M ??;820C8>=L  -  , #>F#>BB201;4 -4AB0C8;4201;4
 0??;820C8>=BD?C> $ I +>14DB43F8C70740EH
3DCHA>C>A M ??;820C8>=L  $>18;4201;4 $438D<3DCH2>0G5>A  5>A0??;820C8>=BC> $ I +>14DB43F8C70740EH
3DCHA>C>A 
 >ABC0C8>=0AH0=C4==0BHBC4<B  0??;820C8>=BD?C> $ I +>14DB43F8C7BC0C8>=0AH  0AA0H >ABC0C8>=0AH0=C4==0BHBC4<
M #4=6C7B 5CC> 5C8=BC>2:  0=C4==0B0=3;867CF4867CA>C>A0??;820C8>=B M #4=6C7B 5CC> 5C8=BC>2: 
M #4=6C7B 5CC> 5C8=BC>2:

ABR400F (PN:25400F)
Stranded Center, Gas Injected Foam Dielectric,
100% Foil + 95% TC Braid
RG316/U Teflon® .100” OD F %$0;4?;D6B40274=3 ><?;4C4
+9D<?4ABJ0=C4==00CC027<4=C5>A14CC4A2>E4A064N F .40C74A?A>>5 40C*7A8=:+D18=6.'
*+
Part# Description Length/Ft Attenuation per 100ft Power Rating
23316-NM-3 N Male Both ends ......................... 3 0.8dB @ 30MHz 2.77kW
23316-NM-6 N Male Both Ends…………………6 1.1dB @ 50MHz 2.14kW
23316-SM-SF-3 SMA Male-SMA Female................ 3 1.8dB @ 150MHz 1.22kW
23316-SM-SF-6 SMA Male-SMA Female................ 6 3.3dB @ 450MHz 0.69kW
23316-SM-SF-9 SMA Male-SMA Female................ 9 M ??;820C8>=L-  , #>F#>BB201;4 
23316-SM-SF-12 SMA Male-SMA Female.............. 12  -4AB0C8;4201;45>A0??;820C8>=BC> I +>14
23316-SM-SF-15 SMA Male-SMA Female.............. 15  DB43F8C70740EH
3DCHA>C>A 0AA0H >ABC0C8>=0AH
23316-SM-3 SMA Male Both Ends .................... 3  0=C4==0BHBC4<
23316-SM-6 SMA Male Both Ends .................... 6 M #4=6C7B 5CC> 5C8=BC>2:
23316-SM-PL-3 SMA Male-PL259 .......................... 3
23316-SM-PL-6 SMA Male-PL259 .......................... 6
23316-SM-SO-3 SMA Male-SO239 ......................... 3
23316-SM-SO-6 SMA Male-SO239 ......................... 6

1” Tinned Copper Flat Ground Braid. 1/2” Tinned Copper Flat Ground Braid. 233/2-G4-(length)
60 <?BF  N*CD3)8=6+4A<8=0;B   60 <?BF  *CD3)8=6+4A<8=0;B  Unique design (Nickel Grommets 4” Spacing)
(D82:0BHA>D=38=6+4A<8=0C8>=B (D82:0BHA>D=38=6+4A<8=0C8>=B 0;;>FB5>A40BH0CC027<4=CC>0E4782;4B1>3H>A
#4=6C7B5CC> 5C8=BC>2: #4=6C7B5CC>5C8=BC>2: CAD2:143C>2A40C40J6A>D=3?;0=4N
>>3>?C8>=0B01DBB
10A8=C74B702:
PNF834C8==432>??4AGG  600<?B
#4=6C7B 5CC> 5C8=BC>2:
$03/,),(56
4XDGUD
6\VWHP
8VHWKLVOLQHDUDPSWRRSHUDWHRQ+) ²PHWHUV DQG
PHWHUV,WKDVDXWRPDWLFEDQGVZLWFKLQJZLWKWKH)7')7
03)7)7)7)7G[)7G[DQGWKH
)7G[+)UDGLRV7KHDPSKDV05)SRZHU026)HW
WUDQVLVWRUVGHVLJQHGLQWRXQLWVRIWUDQVLVWRUVLQDSXVKSXOO
FLUFXLWDW9'&7KHVHSDUDWHSRZHUVXSSO\WKH93
DOORZVHDV\LQVWDOODWLRQ7KHUHDUHWZRLQSXWYROWDJHV9$&
,&3:Z6ROLG6WDWH5HPRWH&RQWURO+HDG RU9$&2XWSXW
SRZHULVDIXQFWLRQ
,FRP
V OLQHDU DPS SURYLGHV ZLGH RIWKHSRZHUVXSSO\
:DWW$PS IUHTXHQF\FRYHUDJHZLWKXSWRN: YROWDJHV $W 
RXWSXW UHTXLULQJ RQO\ D :DWW 9$& WKHUH LV 
PD[LPXPLQSXW7KHGXW\F\FOHLV :DWWVRXWRQ+)DQG
SHUFHQWZLWKIXOOEUHDNLQRSHUD :DWWVRQPH
WLRQ,WFRYHUVDPDWHXUEDQGVWR WHUV$W9$&WKH
PHWHUVSOXVPHWHUV,QFOXGHV RXWSXWLVUHGXFHGWR
DQDXWRPDWLFDQWHQQDWXQHUIRUDOO :DWWVRQ+)
EDQGV,QWHUQDOFLUFXLWU\DOORZVWKH
$/& WR EH DGMXVWHG RYHU D ZLGH 7KH 4XDGUD KDV D
UDQJH VR WKH 3: FDQ EH XVHG EXLOWLQKLJKVSHHGWXQHUWRPDWFKWKHDPSWR\RXUDQWHQQDV
ZLWKDOPRVWDQ\ULJQRWMXVW,FRP ,WKDVIRXUDQWHQQDRXWSXWVDQGWZRLQSXWV7KHPXOWLIXQFWLRQ
2SHUDWHV RQ  RU  9$&  RPQLJORZ/&'GLVSOD\VKRZVWKHVWDWXVRIWKHDPSOLÀHU7KHUH
RUF\FOH LVDXWRPDWLFV\VWHPPRQLWRULQJZLWK96:5SURWHFWLRQ

$PSOLÀHU6SHFLÀFDWLRQV &$//IRU+52'LVFRXQW3ULFHV
/$.
6ROLG6WDWH$PSOLÀHU
:H DUH SOHDVHG WR DQQRXQFH WKDW WKH
/$. IDU H[FHHGV DOO VWDQGDUGV LQ )&&
WHVWLQJ DW D )&&FHUWLÀHG ODERUDWRU\ DQG
UHFHLYHG FHUWLÀFDWLRQ IRU HTXLSPHQW DX
WKRUL]DWLRQ
‡ &RROLQJYDULDEOHVSHHGIDQV VSHHG 
‡ &KDVVLVJDXJHDOXPLQLXP
‡ 7RSFRYHUJDXJHDOXPLQLXPSRZ
GHUFRDWHG
‡ 'LPHQVLRQVµZLGH[µKLJK[
µGHHS
‡ 6KLSSLQJZHLJKWOEV.J
‡ 'HVLJQ FRQFHSW IXOO FRPSDWLELOLW\ ZLWK
WKH3DOVWDU+)$872DXWRWXQHU
‡ :DUUDQW\7ZR<HDUV
6SHFLÀFDWLRQV
‡ 66%SRZHU:DWWV3(3&:,&$6
‡ &:0RGHSRZHUOHYHOVXSWR:
‡ )0577<:DWWV
‡ $0:DWWV
‡ )UHTXHQF\UDQJHWR0+]
‡ 'LVSOD\&RORU7)7WRXFKVFUHHQ
‡ 2XWSXW[5)62RUW\SH1
‡ $/&([FLWHUSRZHUFRQWURO
‡ 'ULYH5HTXLUHG: DOOEDQGV 
‡ *DLQG% QRPLQDO
‡ 5)VHQVLQJDXWREDQGVZLWFKLQJ
‡ 5) 2XWSXW YDFXXP UHOD\ 75 VZLWFK
LQJ
‡ 3RZHUVXSSO\LQWHUQDOPHGLFDOJUDGH
‡ '&VXSSO\9$&9$&9#
$
‡ 3RZHUGHYLFHV[+:/'
026
‡ $XWR3URWHFW6:5VKRUWFLUFXLW
‡ ,QWHUPRGORZ,0'GLVWRUWLRQ!G%
‡ 3XUHVLJQDOVDPSOH#G%P 2ZQHUPRGLÀDEOHIRUP$GGSRXQGV7UDQVIRUPHUVKLSSHGVHSDUDWHO\‚93SRZHUVXSSO\LQF
 UHDUSDQHO#N:RXWSXW ([SHFWORQJSURGXFWLRQGHOD\V$GGSRXQGV7UDQVIRUPHUVKLSSHGLQVHSDUDWHSDFNDJH

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


$03/,),(56

1R7XQH$PSV /HJDO/LPLW$PSV

0RELOH$PS
$/60
 :3(3  :&: PRELOH DPSOLÀHU ZLWK LQ
VWDQWEDQGVZLWFKLQJQRWXQLQJQRZDUPXS6:5
ORDGIDXOWWKHUPDORYHUORDGSURWHFWHG2Q2II $/%
%\SDVVVZLWFK5HPRWHRQRIIFRQWUROFDSDEOH'& N:3(3RXWSXWIURPDFRPSDFWGHVNWRS
FXUUHQWPHWHUZLWKYHU\TXLHWIDQ0+]  OLQHDUWKDWSOXJVLQWR9$&RXWOHW&ODV
0HWHUVZLWK0RG0RSWLRQ 2SWLRQVLQFOXGH VLF*WXEHLQUXVKFXUUHQWSURWHFWLRQ
$/65&UHPRWHKHDGDQG636099$& $/6 WZR\HDUOLPLWHGZDUUDQW\
$#9'&RXWSXWSRZHUVXSSO\IRUXVLQJ$/6 +):
0DWKRPH
6ROLG6WDWH$PSOLÀHU
&RYHUV  0+] ZLWK  :DWWV 3(3
2XWSXW )HDWXUHV LQVWDQW DXWRPDWLF EDQG
VZLWFKLQJ QR WXQLQJ DQG QR ZDUPXS ,W LV
6:5 SURWHFWHG ZLWK TXLHW YDULDEOHVSHHG
FRROLQJ0HWHULQJLQFOXGHV3(3):'5()
3$EDODQFHDQG$/&ZLWKD/(',QGLFDWRU
7KHUH DUH IURQWSDQHO EDQG  HUURU /('V $/
)URQWSDQHO$/&FRQWURO7KH$/6KDV )XOO OHJDO OLPLW DPSOLIHU XVLQJ D SDLU RI
PRGXODUFRQVWUXFWLRQIRUHDV\VHUYLFLQJDQG * WXEHV 6XSHU KHDY\ GXW\ +\SHU
LV SRZHUHG E\ D  9'& VZLWFKLQJ SRZHU VLOŠSRZHUWUDQVIRUPHUDOORZVWKHWXEHVWR
VXSSO\ 7KLV FRPSDFW RSHUDWRUIULHQGO\ DQG EH XVHG WR WKHLU IXOO SRWHQWLDO 7ZR LOOXPL
/RZ&RVW'HVNWRS$PS DWWUDFWLYH GHVNWRS DPSOLÀHU ÀWV QHDWO\ LQWR QDWHGPHWHUVLQFOXGLQJRQHVSHFLÀFDOO\IRU
$/+ DQ\VWDWLRQ-XVW:[+['LQFK PRQLWRULQJJULGFXUUHQW9$&6KLSVLQ
:DWW3(3RXWSXW7KLVORZFRVWGHVNWRSOLQHDU HVDQGZHLJKVRQO\OEV ER[HV
+)DPSOLÀHUJLYHVSOHQW\RISRZHUWREXUVWWKURXJK
450,WZLOOSOXJULJKWLQWRD9$&RXWOHW)RXU
WRXJK $ WUDQVPLWWLQJ WXEHV KHDY\GXW\ SRZHU
VXSSO\ DOO +) EDQG FRYHUDJH RSHUDWH  VWDQGE\
VZLWFKWUDQVPLW/('SOXVPRUH836VKLSSDEOH
7KH$/LVVLPLODUEXWKDVWKUHH$WXEHV
:DWWV3(3RXWSXW

$FFHVVRULHV
$/6 $/
:VROLGVWDWH)(7QRWXQHDPSOLÀHULQ )XOOOHJDOOLPLWDPSOLÀHUXVLQJKDPUDGLRҋV
FOXGHVPRVWRIWKHIHDWXUHVRIWKH$/6 WRXJKHVWWXEHWKH&;=7KHVXSHU
EXWQRDXWREDQGVZLWFKLQJDQGQR0HWHUV KHDY\GXW\SRZHUVXSSO\ORDIVDWIXOOOHJDO
SRZHU

$5%
$PSWR5LJ,QWHUIDFH
3URWHFWVULJIURPGDPDJHE\NH\
LQJ OLQH WUDQVLHQWV DQG PDNHV
KRRNLQJXSWR\RXUULJHDV\ $/6
1RWXQLQJQRIXVVQRZRUULHV²MXVWWXUQRQ $/
DQG RSHUDWH  :DWWV 3(3   : &: $PHULWURQҋVPRVWSRZHUIXODPSOLÀHUXVHVD
 0+] LQVWDQW EDQGVZLWFKLQJ 6:5 &;FHUDPLFWXEH:GULYH
6WRS9ROWDJH6SLNHV SURWHFWHG9$&:[+[ JLYHVIXOOOHJDORXSXW
'LQFKHV,QFOXGHVPDWFKLQJWUDQVIRUPHU
,&3
6WRSV GDPDJLQJ LQUXVK FXUUHQW
SRZHUVXSSO\ )RUPRUH$PHULWURQ$PSV
E\DEVRUELQJKLJKYROWDJHVSLNHV $/66$/6ZLWKSRXQGVZLWFKLQJ YLVLWKDPUDGLRFRP
:RUNVZLWKQHDUO\DOOOLQHDUDPSV SRZHUVXSSO\

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


+)32:(5$03/,),(56

$&20$PSOLÀHUV
6KRZQ5HTXLUH1R
$&20 $&20
$QWHQQD7XQHUIRU ‡ )UHTXHQF\FRYHUDJHDOODPDWHXUEDQGV ‡)UHTXHQF\FRYHUDJH$OODPDWHXUEDQGV
96:5RIRU/HVV LQWKH0+]IUHTXHQF\UDQJHH[
WHQVLRQVDQGRUFKDQJHVRQUHTXHVW
0+]H[WHQVLRQVDQGRUFKDQJHVRQUHTXHVW
‡ 3RZHU2XWSXW:3(3RUFRQWLQXRXVFDU
‡ 3RZHURXWSXW:3(3RU:FRQ ULHUQRPRGHOLPLW
WLQXRXVFDUULHU ‡ 5)*DLQG%W\SLFDOO\IUHTXHQF\UHVSRQVH
‡ ,QWHUPRGXODWLRQGLVWRUWLRQEHWWHUWKDQ OHVVWKDQG% :GULYHSRZHUIRUUDWHG
G%EHORZUDWHGRXWSXW RXWSXW 
‡ +XPDQGQRLVHEHWWHUWKDQG%EHORZ ‡ 3ULPDU\3RZHU9 
UDWHGRXWSXW      9 QRPLQDO WDSV ,
‡ +DUPRQLF RXWSXW VXSSUHVVLRQ EHWWHU WRO +]VLQJOHSKDVH9$DW
WKDQG%EHORZUDWHGRXWSXW UDWHGRXWSXW
‡ ,QSXWDQGRXWSXWLPSHGDQFHV ‡,QSXWDQG2XWSXWLPSHGDQFHVRIQRPLQDOYDOXH
   ² QRPLQDO YDOXH  2KP XQEDODQFHG  2KPV XQEDODQFHG 8+) 62$  W\SH
$&20 8+) 62 W\SHFRQQHFWRUV FRQQHFWRUV ,QSXW FLUFXLW EURDGEDQG 96:5
7KH$&20+)/LQHDULVWKHZRUOGҋVEHVW    ² LQSXW FLUFXLW EURDGEDQG 96:5 OHVV OHVV WKDQ   0+] FRQWLQXRXVO\ QR
YDOXHLQDQDPDWHXU+)DPSOLÀHU,WJLYHV\RX WKDQ0+]FRQWLQXRXVO\ QR WXQLQJQRVZLWFKLQJ 
DFRPIRUWDEOH:DWWVRXWSXWRQDOODPD WXQLQJVQRVZLWFKLQJ  ‡%\SDVVSDWK96:5OHVVWKDQ0+]
WHXUEDQGVIURPWKURXJKPHWHUV    ² E\SDVV SDWK 96:5 OHVV WKDQ  FRQWLQXRXVO\ 2XWSXW DQWHQQD  LPSHGDQFH
 0+] FRQWLQXRXVO\  : PD[L PDWFKLQJ FDSDELOLW\ EHWWHU WKDQ 96:5  RU
‡ )UHTXHQF\ FRYHUDJH $OO DPDWHXU EDQGV PXP JUHDWHUDWUHGXFHGRXWSXWOHYHOV1XPEHURI$Q
0+]0$56&$3UHDG\PRGHO ²RXWSXW DQWHQQD LPSHGDQFHPDWFKLQJ WHQQD2XWSXWV
‡ 3RZHU RXWSXW : 3(3 RU FRQWLQXRXV FDSDELOLW\96:5XSWRRUKLJKHU
FDUULHUQRPRGHOLPLW ‡WR:GULYHSRZHUIRUUDWHGRXWSXW
‡ ,QWHUPRGXODWLRQGLVWRUWLRQEHWWHUWKDQG% ‡ 3ULPDU\SRZHU99$&
EHORZUDWHGRXWSXW        DQG $&20
‡+XP DQG QRLVH %HWWHU WKDQ  G% EHORZ  9 QRPLQDO WDSV    WROHU
UDWHGRXWSXW

DQFH +]VLQJOHSKDVH9$
‡ +DUPRQLFRXWSXWVXSSUHVVLRQ0+] ‡6L]HDQGZHLJKW RSHUDWLQJ :['[+
²EHWWHUWKDQG%EHORZUDWHGRXWSXW [[PPNJ [[
0+]²EHWWHUWKDQG%EHORZUDWHGRXW LQFKHVOEV UHPRWH
SXW ‡ $QWHQQD PDWFKLQJ FDQ EH DFKLHYHG LQ FRQWUROXQLW
‡ ,QSXWDQGRXWSXWLPSHGDQFHV OHVVWKDQVHFRQGVDQGDWDTXDUWHURI
²QRPLQDOYDOXH2KPXQEDODQFHG8+) QRPLQDO RXWSXW SRZHU ZKLFK SURGXFHV
62 W\SHFRQQHFWRUV ORZHU ULVN RI LQWHUIHUHQFH WR RWKHU VWD
²LQSXWFLUFXLWEURDGEDQG96:5OHVVWKDQ WLRQV DQG JUHDWHU VDIHW\ WR WKH DPSOLÀHU ‡ 5)RXWSXW:NH\HGFDUULHURU66%
0+]FRQWLQXRXVO\ QRWXQLQJV FRPSRQHQWV+523ULFH&$// ²QRWLPHOLPLW&RQVWDQWFDUULHUPRGHV:
QRVZLWFKLQJ  5)RXWSXW²QRWLPHOLPLWZLWKDX[FRROLQJIDQ
²E\SDVVSDWK96:5OHVVWKDQ ‡ )UHTXHQF\ FRYHUDJH $OO DPDWHXU EDQGV 
0+]FRQWLQXRXVO\ 0+]0K]RQO\ZLWKPRGLÀFDWLRQ
² RXWSXW PDWFKLQJ FDSDELOLW\ EHWWHU WKDQ ‡ %DQGFKDQJHWXQHXSLQLWLDORXWSXWPDWFKLQJ
96:5RUJUHDWHUDWUHGXFHGRXWSXWOHY SURFHVVLQOHVVWKDQVHFRQGV
HOV ‡ 7XQLQJPHPRULHV1RQYRODWLOHIRUXSWRDQ
‡ 5) JDLQ  G% W\SLFDOO\ IUHTXHQF\ UH WHQQDVSHUIUHTXHQF\VHJPHQW
VSRQVH OHVV WKDQ  G%  WR  : GULYH ‡ 'ULYHSRZHUW\SLFDOO\:IRU:RXW
SRZHUIRUUDWHGRXWSXW  $&206 ‡ ,QSXW LPSHGDQFH  RKPV QRPLQDO 96:5
‡ 3ULPDU\ SRZHU  9    
DQG9QRPLQDOWDSV  ‡ 3RZHURXWSXW:DWWVG%3(3 ‡ 2XWSXWWROHUDQFHXSWR96:5 RQ
9 WDSV RQ UHTXHVW  WROHUDQFH  RU FRQWLQXRXV FDUULHU  :DWWV W\SL P DWIXOOUDWHGRXWSXW
+]VLQJOHSKDVH9$FRQVXPS FDOO\  ‡ 75DQGNH\LQJYDFXXPUHOD\46.FDSDEOH
WLRQDWUDWHGRXWSXW ‡ )UHTXHQF\FRYHUDJHWR0+] ‡ 7XEHV DQG FLUFXLW &;$*8E WHWURGHV
‡ &RPSOLHVZLWK&(VDIHW\DQG(0&UHTXLUH ‡ 'LVSOD\ )LYH LQFK KLJK UHVROXWLRQ FRORU  UHVLVWLYHJULG3,/RXWSXWZLWK5)QHJDWLYH
PHQWVDVZHOODV)&&UHJXODWLRQV DQG GLVSOD\ [ SL[HOV DQG ELWV FRO IHHGEDFN
PEDQGVORFNSURYLGHG  RUV ‡ $/&QHJDWLYHJRLQJJULGGHULYHGYPD[
‡ 6L]H ZHLJKW RSHUDWLQJ  ‡ &RPSDWLEOH ZLWK DOO WUDQVFHLYHU PRGHOV ‡ 0HWHULQJ FRPSUHKHQVLYH 5HPRWH FRQWURO XQLW
²:['[+[[PPNJ DYDLODEOHRQWKHPDUNHW SURYLGHVÁH[LEOHPRQLWRULQJRIDOODPSOLÀHUSD
² [[LQFKHVOEV ‡ %URDGEDQG LQSXW FLUFXLW SURYLGLQJ D SHU UDPHWHUV 3& LQWHUIDFH 56  SOXV UHPRWH
‡ 2SHUDWLQJHQYLURQPHQWV IHFW WUDQVFHLYHU ORDG ZLWK 6:5 EHORZ SKRQHOLQHLQWHUURJDWLRQIHDWXUH
²WHPSHUDWXUHUDQJHGHJV&HOVLXV  W\SLFDOO\ ZLWKRXWUHWXQLQJ ‡ 1R FRQWUROV RQ 5) XQLW H[FHSW 21  2)) 5)
²KXPLGLW\XSWR#GHJV&HOVLXV ‡ 5HPRWHO\FRQWUROOHGE\56LQWHUIDFH XQLWPD\EHORFDWHGXSWRPHWHUV PZLWK
²KHLJKWXSWRPDERYHVHDOHYHOZLWK ‡ ,QSXW DQG RXWSXW LPSHGDQFHV QRPLQDO RSWLRQDOFDEOH IURP5&8
RXWRXWSXWGHWHULRUDWLRQ+523ULFH&$// YDOXH2KPVXQEDODQFHG +523ULFH&$//

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


'&32:(5$&&(6625,(6
3:5FKHFN 3:5JXDUG3OXV
$XWRPDWLF VDIHW\
3URYLGHV GLV VZLWFK WXUQV RII LI
(SLF SOD\ RI YROW YROWDJH H[FHHGV
DJH FXUUHQW  YROWV RU GURSV
3:5JDWH ÁRZ LQ HLWKHU EHORZ  YROWV
GLUHFWLRQ ZDWW 7XUQV EDFN RQ
(SLF 3:5JDWH LV D DJH DQG DPS ZKHQ YROWDJH LV LQ VDIH RSHUDWLQJ UDQJH
 9 XQLQWHUUXSWLEOH KRXUV 0HDVXUHV  9 WR  9 OHVV WKDQ  0RPHQWDU\ YROWDJH GLSV EHORZ  YROWV
SRZHU V\VWHP WKDW 9 UHTXLUHV 86% SRZHU WR 3:5FKHFN   DUH LJQRUHG WR SUHYHQW IDOVH WULSSLQJ ZKLOH
FDQ VXSSO\ XS WR $ FRQWLQXRXVO\ IURP HLWKHU $ FRQWLQXRXV ORDG $FFXUDWH WR ZLWKLQ  WUDQVPLWWLQJ 5DWHG IRU $ PD[LPXP ZKLOH
D SRZHU VXSSO\ RU D /HDG$FLG RU /LWKLXP EDW  P9   P$ 5HVROXWLRQ  P9  WUDQVPLWWLQJ$FRQWLQXRXVGXW\6RIWWXUQ
WHU\ZLWKDOPRVWQRYROWDJHORVV,WDOVRFKDUJHV P$ %DFNOLW JUDSKLFV /&' GLVSOD\V GDWD LQ RQWXUQRIIVROLGVWDWHVZLWFKSURWHFWVUDGLR
WKHEDWWHU\ZLWKLWVKLJKSHUIRUPDQFHFKDUJHU$ GLJLWDODQDORJDQGEDUJUDSKIRUPDWV86% DQGUHGXFHVLQUXVKFXUUHQW²QRUHOD\FRQWDFW
VHSDUDWHVRODUSDQHOLQSXWFDQEHXVHGWRFKDUJH FRPSXWHULQWHUIDFHIRUFRQÀJXUDWLRQDQGORJ ERXQFH5HPRWHRQRIIFDSDELOLW\,QGLFDWRU
WKHEDWWHU\GLUHFWO\IURPDVRODUSDQHOZLWKRXWSXW GDWDGRZQORDG3URJUDPPDEOHDODUPFRQGL /('V DQG DXGLEOH DODUP QRWLI\ XVHU ZKHQ
OHVVWKDQ9+523ULFH WLRQVIRURYHUFXUUHQWRYHUXQGHUYROWDJH VDIHW\VZLWFKWXUQVSRZHURII8VHUPD\GLV
DPS KRXUV 8VHV 3RZHUSROHŠ FRQQHFWRUV DEOH EX]]HU 8VHV $QGHUVRQ 3RZHUSROHŠ
6XSHU +523ULFH FRQQHFWRUV+523ULFH

3:5JDWH
3*V 5,*UXQQHU3RZHU'LVWULEXWLRQ3DQHOV
YROWXQLQWHUUXSWDEOH 5,*5XQQHUVDUHWKHPRVWFRQYHQLHQWDQGVDIHVWZD\WRFRQQHFWDOO\RXUYROWHTXLSPHQW
SRZHU VZLWFK WKDW FDQ 8VHV$QGHUVRQ3RZHUSROHŠ²$5(65$&(656*%VWDQGDUG3RODUL]HGDQGFRORUNH\HG
VXSSO\ XS WR  DP $PSVWRWDO LV$PSVWRWDO 2XWOHWVIXVHGZLWKDVVRUWHG$7&$72DXWRPRWLYHIXVHV
SHUHV FRQWLQXRXVO\ IURP HLWKHU D SRZHU VXSSO\ %ORZQ IXVH /(' LQGLFDWRUV )RU KRPH DQG PRELOH LQVWDOODWLRQV IRRW LQSXW FDEOH $:*
RUDEDWWHU\DQGFDQDOVRFKDUJHWKHEDWWHU\ZLWK ZLWKLQFKWHUPLQDOV $:*IRU ´&RPSOHWHµYHUVLRQVLQFOXGH3RZHUSROHŠSDFNV
LWVKLJKSHUIRUPDQFHFKDUJHU&RQQHFWHGHTXLS $OWHUQDWHYROWDJHYHUVLRQVRI5,*UXQQHUV 9'& DUHDYDLODEOH+523ULFH&$//
PHQWZLOOLQVWDQWO\VZLWFKWREDWWHU\GXULQJDSRZ
HUEODFNRXWRUSRZHUVXSSO\IDLOXUH 5,*UXQQHU8
+523ULFH  DPS  RXWOHWV 
86% SRUWV ZLWK  $
FKDUJH  SDLUV RI $
3RZHUSROHŠVHWV+523ULFH

,62SZU3OXV 5,*UXQQHUDPSRXWOHWV/('DQG
,62SZU3OXVLVDVROLG DXGLEOHDODUPVSDLUVRI$3RZHUSROHŠ
5,*UXQQHU VHWV+523ULFH
VWDWH VZLWFK XVLQJ D  DPS  RXWOHWV 
KLJK SRZHUHG )(7 SDLUV RI  $ 3RZHU
,W WXUQV RQ ZKHQ WKH SROHŠVHWV+523ULFH
FDUҋVDOWHUQDWRULVUXQQLQJDQGWXUQVRIIZKHQLWLV
QRW7KHVZLWFKLQJSRLQWLVYROWV3:5JXDUG 5,*UXQQHU+
RXWSXW VKXWRII ZKHQ YROWDJH LV RXW RI UDQJH DPSRXWOHWVKRUL
6DIHO\ KDQGOHV  DPSHUHV DQG LV SURWHFWHG ]RQWDO  SDLUV RI $ 5,*UXQQHU +  DPS  RXWOHWV KRUL
ZLWKDDPSHUH$7&EODGHIXVH,QFOXGHVWKUHH 3RZHUSROHŠVHWV+523ULFH ]RQWDO  SDLUV RI  $ 3RZHUSROHŠ VHWV
VHWV RI 3RZHUSROHŠ FRQQHFWRUV 86% SRUW IRU  +523ULFH
VHWWLQJRSHUDWLQJWKUHVKROGVDQGIRUPRQLWRULQJ
+523ULFH 5,*UXQQHU8
GHOLYHUV XS WS 
'&WR*2ZLWK8 DPSV WRWDO WKURXJK
RXWOHWVDQGLQFOXGHVDGXDO86%VRFNHWIRU
6XSHU FKDUJLQJSRUWDEOHGHYLFHVWKDWQHHGD86% 5,*UXQQHU6DPSRXWOHWV2QH
3:5JDWH VRFNHWIRUFKDUJLQJ(DFKSRUWKDVDQ5), PDVWHU RXWOHW DQG QLQH VZLWFKHG ZLWK /('
3*6 SURWHFWLRQFDSDFLWRU(DFKIXVHKDVDEORZQ DQG DXGLEOH DODUPV 3:5JXDUG VKXW RII LQ
/('(DFKSRUWXVHVKLJKFXUUHQW$QGHUVRQ WHUQDO86%SRUWUHPRWHDFFHVVYLD86%SRUW
6XSHU 3:5JDWH SUR
3RZHUSROHŠFRQQHFWRUV+52 WRWXUQRQRII-XPSHUIRUSRZHUVDYLQJPRGH
YLGHV HDV\WRXVH SRU
3ULFH  SDLUV RI $ 3RZHUSROHŠ VHWV 
WDEOH '& 3RZHU 7DNHV
*URXS  6L]H %DWWHU\ 5 , * U X Q Q H U +523ULFH
VROGVHSDUDWHO\ ,WLQFOXGHVD5,*UXQQHU8 8  DPS
FRQYHQLHQWO\PRXQWHGWREDWWHU\ER[ DQG6XSHU F R Q W L Q X R X V
3:5JDWH3*6 FRQYHQLHQWO\PRXQWHGWREDW GXW\  IXVHG
WHU\ ER[  2SWLPL]HG IRU XVH ZLWK JHOOHG $*0 RXWOHWV $XWRPDWLF VXSSO\ YROWDJH DQG ORDG
W\SHEDWWHULHVEXWZLOONHHSÁRRGHGOHDGDFLGDQG FXUUHQWPHDVXUHPHQWVKRZQRQD[VHJ
PDULQH W\SH EDWWHULHV QHDU IXOO FKDUJH DV ZHOO PHQW GLVSOD\ $XWRPDWLF VKXW RII RQ KLJK
6ROLG GXUDEOH DOXPLQXP FRQVWUXFWLRQ LQFOXGHV +9' RUORZYROWDJHFRQGLWLRQ /9' ,QWHO 5,*UXQQHU &  DPS  RXWOHWV ZLWK
PRXQWLQJKROHVIRUFRQYHQLHQWVHFXUHXVHLQPR OLJHQW86%SRUWIRUFKDUJLQJL3KRQH$QGURLG /('  DXGLEOH DODUPV  SDLUV RI  $
ELOH XQLWV 8VHV$QGHUVRQ 3RZHUSROHŠ FRQQHF DQGRWKHU86%GHYLFHV+52 3RZHUSROHŠ VHWV  +52 3ULFH
WRUV+523ULFH 3ULFH 

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


32:(56833/,(6
560$3
6ZLWFKLQJ6XSSOLHV
$OO RI $VWURQ
V VROLGVWDWH
HOHFWURQLFDOO\UHJXODWHG3RZHU
6XSSOLHVKDYHIROGEDFNFXUUHQW
OLPLWLQJWRSURWHFWIURPH[FHV
VLYHFXUUHQWDQGDKHDY\GXW\ 'DLZD VZLWFKLQJ SRZHU
KHDWVLQN2XWSXWYROWDJH VXSSOLHVDUHRQHWKLUGWKH
9'&“YROWV9VXSSOLHV 560$3 6HULHV  3RZHU ZHLJKW DQG RQHKDOI WKH
DYDLODEOH RQ VSHFLDO RUGHU DW VXSSOLHVZLWKIURQWPHWHUV VL]H RI FRQYHQWLRQDO VXS
VOLJKWO\KLJKHUSULFH$3PRGHOV 2QHLVIRUYROWDJHDQGWKH SOLHV 'DLZD PRGHOV FDQ
KDYH $QGHUVRQ 3RZHUSROHŠ RWKHU FXUUHQW 1RZ ZLWK 9606HULHV9DULDEOHSRZHU EHXVHGIRU'&PRWRUVWKDW
FRQQHFWLRQV $QGHUVRQ3RZHUSROHVŠ VXSSOLHV ZLWK VHSDUDWH YROW UHTXLUHSHDNVWDUWLQJFXUUHQWVDQGZLOODFFHSWLQSXW
DQGDPSPHWHUV$GMXVWDEOH YROWDJHIURP96ZLWFKLQJVXSSOLHVFDQ
56$6HULHV6WDQGDUGSRZHU 666HULHV+LJKHIÀFLHQF\ RXWSXWYROWV FUHDWH SXOVH QRLVH EXW 'DLZD HQJLQHHUV KDYH
VXSSO\ ZLWK RQ  RII VZLWFK VZLWFKLQJVXSSOLHVVSHFLDOO\ LVRODWHGDQ\QRLVHDQGPRYHGLWRXWRIWKHDPD
$GMXVWYROWDJHLQWHUQDOO\ ÀOWHUHG IRU XVH ZLWK FRP 506HULHV[UDFN WHXUEDQGVFUHDWLQJDVXSHUTXLHWSRZHUVXSSO\
PXQLFDWLRQVHTXLSPHQWIRU PRXQWSRZHUVXSSOLHVDYDLO
6/6HULHV6OLP/LQHGHVLJQIRU DEOH ZLWK RU ZLWKRXW PHWHUV %RWKPRGHOVEHORZKDYHDGMXVWDEOHYROWDJH
DOO IUHTXHQFLHV LQFOXGLQJ
ORZSURÀOHORRNV DQG PD\ EH YDULDEOH 7KH 9DEXLOWLQDXWRPDWLFFRROLQJIDQDFDUU\KDQGOH
+) +HDY\ GXW\ GHVLJQ
50FRPHVZLWKRUZLWKRXW IRUSRUWDELOLW\DQGDUHVKRUWFLUFXLWSURWHFWHG
ORZSURÀOHOLJKWZHLJKWDQG
(0,ÀOWHU PHWHUV
3RZHU6XSSOLHV

66:DPS
‡'XDOPHWHUVDPSDQGYROWDJH
‡ 5LSSOHYROWDJHOHVVWKDQP9
‡DPSVFRQWLQXRXVFXUUHQW SHDN 
‡ :HLJKW21/<OEVR]V
‡ 'LPHQVLRQVµ[µ[µ DSSUR[ 
+523ULFH

66DPS
‡ DPSVFRQWLQXRXVFXUUHQW SHDN 
‡DPSVDYDLODEOHDWDOORXWSXWYROWDJHV
‡%LQGLQJSRVWVRQEDFNFLJDUHWWHOLJKWHUVRFNHW
VSULQJORDGHGFRQQHFWRUVRQIURQW
‡9ROWDJHÁXFWXDWLRQOHVVWKDQ
‡ 'XDOSXUSRVHPHWHU²DPSDQGYROWDJH
‡ :HLJKW21/<OEVR]V
‡ 'LPHQVLRQVµ[µ[µ DSSUR[ 
‡ 5LSSOHYROWDJHOHVVWKDQP9
+523ULFH

$3PRGHOVQRZZLWK$QGHUVRQ3RZHUSROHVŠ
&DOOIRU4XRWHV
YROWYHUVLRQVRIVRPHPRGHOVDYDLODEOHDWDGGLWLRQDOFRVWE\VSHFLDORUGHU&RQWDFW+52IRUGHWDLOV

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


6:,7&+,1*32:(56833/,(6
$GMXVWDEOH'&2XWSXW

0)-
6ZLWFKLQJ SRZHU VXSSO\ GHOLYHUV $ VXUJH 0)-09
 $ FRQWLQXRXV DW  9'& 6HOHFWDEOH 6ZLWFKLQJSRZHUVXSSO\JLYHV$VXUJH$ 0)-09
$& LQSXW YROWDJH  DQG  9$& FRQWLQXRXV9'&ZLWKYROWDJHUHJXOD +DPUDGLRҋVRQO\DGMXVWDEOH9'&RXWSXW
ZD\ ELQGLQJ SRVWV FLJDUHWWH OLJKWHU VRFNHW WLRQ$&LQSXWRU9:[ VZLWFKLQJSRZHUVXSSO\$DW9'&
IDQ´RQµ/('LQGLFDWRU:[+[' +['DQGOEV $DW9'&%DFNOLJKWHGYROWDPSPHWHUV
DQGOEV ZD\ELQGLQJSRVWV/('ORDGIDXOWLQGLFDWRU
:[+['DQGOEV

$YDLODEOHZLWK
3RZHU3ROH&RQQHFWRUV

0)-09
6LPLODUWR0)-09EXWKDQGOHVDPSV
0)-09 VXUJHDQGDPSVFRQWLQXRXV:[
 DPS VZLWFKLQJ SRZHU VXSSO\ $ VXUJH +['LQFKHV:HLJKVMXVWSRXQGV
DQG$FRQWLQXRXV9DULDEOH9'&ZLWK
YROWDJHUHJXODWLRQ%DFNOLJKWHGYROWDPS 0LJKW\/LWHŒ
PHWHUVZD\ELQGLQJSRVWVIRURXWSXW:[
+['DWOEV 0)-
6ZLWFKLQJ 3RZHU 6XSSO\  DPSV VXUJH 
DPSV FRQWLQXRXV 1R 5) KDVK /RZ ULSSOH
KLJKO\UHJXODWHG*UHDWUHYLHZE\467PDJD
]LQH2YHUYROWDJHDQGRYHUFXUUHQWSURWHFWLRQ
FLUFXLWV 6ZLWFKDEOH $& LQSXW YROWDJH ZRUNV
IURPWR9$&RUWR9$&5H
0)-09 SODFHDEOH IXVH7LQ\  : [  + [  '
 DPS VZLWFKLQJ SRZHU VXSSO\ LV JUHDW IRU LQFKHV:HLJKVMXVWOEV
SRZHULQJ \RXU $PHULWURQ $/60 DPSOL
ÀHU$PD[LPXPDQG$FRQWLQXRXV
  9$& VZLWFKDEOH +LJKO\ UHJXODWHG ZLWK
0)-09 ORDGUHJXODWLRQEHWWHUWKDQ5LSSOHYROWDJH
6LPLODU WR 0)- EXW DGGV ODUJH LQFK
LVOHVVWKDQP9SHDNWRSHDNDWUDWHGORDG
DPS YROW PHWHUV DQG FLJDUHWWH OLJKWHU SOXJ
1R5)KDVK6KRUWFLUFXLWRYHUORDGDQGRYHU
 : [  + [  ' LQFKHV :HLJKV 
WHPSHUDWXUH SURWHFWLRQ V\VWHPV )URQW SDQHO
SRXQGV
DGMXVWDEOH YROWDJH  9'& %DWWHU\ FKDUJ
LQJIHDWXUHSURYLGHVFKDUJLQJFXUUHQWRI$ 0)-3
FRQWLQXRXV  P$ WULFNOH FKDUJH  : [ 7KLV YHUVLRQ DYDLODEOH ZLWK  SDLU RI 3RZHU
7UDQVIRUPHU6XSSO\ +['LQFKHV 3ROHVŠDQGZD\ELQGLQJSRVWVRQIURQWSDQ
HODQGTXLFNFRQQHFWVRQEDFN
6XSHU7LQ\6XSSO\

0)-09
 DPS VZLWFKLQJ SRZHU VXSSO\ ZLWK VZLWFK
DEOHDPSYROWPHWHU6XSHUFRPSDFW:[
0)-09 0)- +['LQFKHV9$&VZLWFK
 OE WUDQVIRUPHU GHOLYHUV $ PD[ $ 8OWUDFRPSDFW  DPS VZLWFKLQJ SRZHU VXS DEOH *LYHV  DPSV FRQWLQXRXV RU  DPSV
FRQWLQXRXV9'&RXW9$&LQ+LJKO\ SO\ ZHLJKV MXVW  SRXQGV DQG LV  : VXUJHDW9'&)URQWSDQHOYROWDJHDGMXVW
UHJXODWHG  ORDG UHJXODWLRQ ZD\ ELQGLQJ [  + [  ' LQFKHV +DV RYHUYROWDJH DEOHWR9'&
SRVWVTXLFNFRQQHFWV,WLVDWUDQVIRUPHUVXS DQGRYHUFXUUHQWSURWHFWLRQ$VXUJH$ 0)-093LVVLPLODUWR0)-09EXW
SO\QRWDVZLWFKLQJ FRQWLQXRXV DGGVDSDLURI3RZHU3ROHVŒRQEDFN

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


62/$532:(5
'&WR$&,QYHUWHUV
6DPOH[LV7+(SRZHUVXSSO\FKRLFHIRUUDGLRPDQXIDFWXUHUVDURXQGWKH
ZRUOG2QWKHPDUNHWIRUPRUHWKDQ\HDUVWKHVHFRPSDFWVZLWFKLQJ
SRZHUVXSSOLHVRIIHUUHOLDEOHSRZHUDWDSULFHFRQVXPHUVFDQDIIRUG
$//6$0/(;32:(56833/,(6&$55<$<($5:$55$17<

)RU%DVH6WDWLRQV %DWWHU\%DFNXS

367:DWW
367:DWW
367:DWW
+523ULFHV²&$//
6(& 6(&
7KH 367 VHULHV SURYLGHV FOHDQ SXUH VLQH ZDYH
7KH SHUIHFW OLJKWZHLJKW FRPSDQLRQ IRU  :DWW SRZHU367ҋVFRPPHUFLDOJUDGHGHVLJQLVVXLWDEOH
WUDQFHLYHUV,QSXW9$&2XWSXW9'&# IRU KHDY\ GXW\ ORDGV ORQJ SHULRGV RI FRQWLQXRXV
$PSV8/DSSURYHG$OVRZRUNVRQ9$& %%0$PS RSHUDWLRQDQGIRUUHOLDEOH$&SRZHU
LQSXWZLWKDVLPSOHMXPSHUFKDQJH6DIHW\IHDWXUHV
&XUUHQWOLPLWLQJ6KRUWFLUFXLWSURWHFWLRQ2YHUYROWDJH
%%0$PS
‡ 4XLHW2SHUDWLRQZLWKWHPSHUDWXUHFRQWUROOHGIDQ
SURWHFWLRQ 4XLHW WHPSHUDWXUH FRQWUROOHG FRROLQJ ‡ 8QLQWHUUXSWHG '& SRZHU LQ DVVR UHGXFHVHQHUJ\FRQVXPSWLRQ
IDQ7KH 6(& KDV WKH VDPH IRUP IDFWRU DV FLDWLRQ ZLWK D SRZHU VXSSO\ DQG ‡ ([WUHPHO\ORZLQWHUIHUHQFHZLWKRWKHUGHYLFHV‡
WKH6(&ZLWKRXWSXWRI9'&#DPSV EDWWHU\ 3UHVHWIRU9SRZHUVXSSO\*)&,SURWHFWHG
‡\HDUZDUUDQW\´QRTXHVWLRQVDVNHGµ ‡ ,QVWDQWDQHRXV WUDQVIHU RI ORDG EH RXWOHWV
‡'LPµZ[µK[µGOEV WZHHQSRZHUVXSSO\DQGEDWWHU\ ‡ 6XLWDEOH IRU KHDY\ GXW\ ORDGV ORQJ SHULRGV RI
+523ULFH6(& ‡ 3UHVHWIRU9SRZHUVXSSO\ FRQWLQXRXVRSHUDWLRQ IRUHPHUJHQF\EDFNXS
+523ULFH6(& ‡ 0LQRUPRGLÀFDWLRQVIRU9SRZHU ‡ :LGHRSHUDWLQJ'&LQSXWUDQJHFRPSDWLEOHZLWK
VXSSO\ QHZKLJKYROWDJHDOWHUQDWRUV
‡ 8VHZLWKDQ\6DPOH[RURWKHU9 ‡ 8QLYHUVDO 3URWHFWLRQ &LUFXLW ORZ YROWDJH RYHU
RU9'&SRZHUVXSSO\ YROWDJHRYHUWHPSRYHUORDGDQGVKRUWFLUFXLW
+523ULFH%%0 ‡ 6DIHW\ FHUWLÀHG WR 8/  &6$ VWDQGDUGV )&&
+523ULFH%%0 FRPSOLDQW
‡ \HDUZDUUDQW\
6(&0
5DGLR&DELQHWV
7KLVXQLWLQFOXGHVEXLOWLQYROWDQGDPSPHWHUV
9$&9'&
6RODU3RZHU
‡ %HVWSRZHUVXSSO\YDOXHDYDLODEOH
‡ $GYDQFHGVZLWFKPRGHWHFKQRORJ\
‡ 5HOLDEOHSRZHUDWPLQLPXPZHLJKW VL]H
‡&LUFXLWLQQRYDWLRQVPLQLPL]HRXWSXWYROWDJHULSSOH
DQG5),
‡,QSXWYROWDJHFDQEHVHWDW9$&RU9$&
LQWHUQDOMXPSHUVHWWLQJ 
‡ )URQWSDQHODPPHWHUDQGYROWPHWHU
‡ 'HWDFKDEOHSRZHUVXSSO\FRUG
‡ 8/OLVWHGWRERWK86$ &DQDGLDQVDIHW\VWDQGDUGV
6(&
)&&FRPSOLDQW+523ULFH
VKRZQ 3RUWDEOH.LWV
%DVH6WDWLRQ 06.:DWW
6(&%%0
5DGLR&DELQHWV 06.:DWW
,QWHJUDWH \RXU PRELOH UDGLR ZLWK DQ\
:KHWKHU \RX QHHG WR FKDUJH \RXU 9 EDWWHULHV
6DPOH[ KDV 6DPOH[ GHVNWRS VZLWFKLQJ SRZHU
GXULQJ ÀHOG HPHUJHQFLHV RU WR JHW H[WHQGHG UH
FRPELQHG WKH VXSSO\ WR FUHDWH DQ DWWUDFWLYH DQG
PRWH UXQWLPHV IRU \RXU HTXLSPHQW DOZD\V KDYH
UHOLDELOLW\RIWKH6(& IXQFWLRQDO GHVNWRS EDVH VWDWLRQ XQLW
WKH 6DPOH[ 06. 3RUWDEOH 6RODU &KDUJLQJ NLW DW
ZLWKWKHUHDVVXUDQFHRI &DELQHWVDUHVSHFLÀFDOO\GHVLJQHGIRU
\RXUUHDG\$YDLODEOHLQDQG:DWWPRGHOV
WKH%%0EDWWHU\EDFNXSPRGXOH7KH6(& XVH ZLWK VSHFLÀF PRELOH UDGLR PRG
WKHVH 06. NLWV LQFOXGH D EXLOWLQ WKUHHVWDJH 
 DPS XQLW DXWRPDWLFDOO\ SURYLGHV XQLQWHU HOV+523ULFH
$PSFKDUJHFRQWUROOHUWRSURWHFWEDWWHULHVDQGSUH
UXSWHG'&SRZHUIURPDQH[WHUQDOEDFNXSEDWWHU\
YHQWRYHUFKDUJLQJ.LWVIROGHDVLO\DQGFRPSDFWO\
WR \RXU FULWLFDO ORDG LQ WKH HYHQW RI DQ$& SRZHU 6(& UDGLRQRWLQFOXGHG
LQDSURWHFWLYHFDUU\FDVHIRUWUDQVSRUWDQGVWRUDJH
RXWDJH 2QFH $& SRZHU LV UHVWRUHG WKH 6(& 6DPOH[IRU.HQZRRG
DQGFRPHZLWKSUHZLUHGEDWWHU\FODPSVRQDҋ
%%0 ZLOO FRQWLQXH WR VHDPOHVVO\ VXSSO\ '&  70$
FDEOH\HDUZDUUDQW\
SRZHUWRWKHORDGZKLOHSURYLGLQJDFXUUHQWOLPLWHG 6DPOH[IRU,FRP,'+
FKDUJH WR WKH EDFNXS EDWWHU\ ,QSXW  ²  ,&+ +523ULFH06.&$//
9$&2XWSXW9'&+523ULFH 6DPOH[IRU<DHVX)7$ +523ULFH06.&$//

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


32:(56833/,(6 %$77(5,(6
/LWKLXP,URQ
3KRVSKDWH
%DWWHULHV
'07 %LRHQQR3RZHU¶V/LWKLXP,URQ3KRVSKDWHEDWWHULHVDUHGHVLJQHGZLWKKDP
UDGLRDSSOLFDWLRQVLQPLQGDQGSURYLGHVHYHUDONH\DGYDQWDJHV
6ZLWFKLQJ
3RZHU6XSSO\ ‡ %DVHGRQDGYDQFHG/LWKLXP,URQ3KRVSKDWH /L)H32 EDWWHU\FKHPLV
WU\
‡ &RPSDWLEOHZLWKHYHU\EUDQG ,&20.HQZRRG<DHVX(OHFUDIWHWF 
‡ %XLOWLQSURWHFWLRQFLUFXLWPRGXOHV 3&0 ZKLFKDUH´PLFURFRPSXWHUVµ
&RPSDFW OLJKWZHLJKW GH WKDWLQWHUQDOO\EDODQFHFHOOVDQGSURYLGHSURWHFWLRQIURPRYHUFKDUJLQJ
VLJQ IHDWXUHV  9'& RYHUGLVFKDUJLQJRYHUFXUUHQWDQGVKRUWFLUFXLWLQJ
YDULDEOHRXWSXWXSWRDPSVFRQWLQXRXV ‡ WROLJKWHUWKDQ6/$ VHDOHGOHDGDFLG EDWWHULHV
DQGDPSVSHDN7KHQRLVHRIIVHWFLUFXLWOHWV\RXPRYHDQ\VZLWFK ‡ 6HUYLFHOLIHRIFKDUJHF\FOHVRU\HDUVZLWKDVKHOIOLIHWKDW
LQJQRLVHWRDQRWKHUIUHTXHQF\)HDWXUHVODUJHLOOXPLQDWHGGLJLWDO9ROW IDUH[FHHGVWKHVHUYLFHOLIHRIPDQ\RWKHUEDWWHULHV
$PSPHWHUUHDUSDQHO $SHDN ELQGLQJSRVWVIURQWSDQHOTXLFN ‡ 3RZHUSROHŠFRQQHFWRUVWKDWDUHDOUHDG\DWWDFKHGDQGFDQFRQQHFWGL
WHUPLQDOV $ EDQDQDSROHVIRU($QGHUVRQSRZHUSROHVIRU7VKRUW UHFWO\WRUDGLRV
FLUFXLW RYHU WHPSHUDWXUH DQG FXUUHQW OLPLWLQJ SURWHFWLRQ )URQW SDQHO ‡ 7KHUPDOO\DQGFKHPLFDOO\VWDEOH
DGMXVWDEOH+523ULFH&DOO ‡ 'HSHQGDEOHDQGUHOLDEOH
%DVHG LQ 6DQWD$QD &DOLIRUQLD %LRHQQR 3RZHU SURGXFWV DUH FXUUHQWO\
XVHGLQDYDULHW\RIDSSOLFDWLRQVDQGLQGXVWULHVLQFOXGLQJKDPUDGLRVXU
'0 YHLOODQFH DYLRQLFV VFLHQWLÀF HTXLSPHQW FRPPXQLFDWLRQV DXGLRYLVXDO
097 HTXLSPHQWHELNHVHVFRRWHUVHWFZLWKFDSDFLWLHVUDQJLQJIURP$KXS
WR$K

%LRHQQR3RZHU%/):
9ROW$K/)3%DWWHU\
6XSHUFRPSDFWOLJKWZHLJKWSRZHUVXSSO\LVJUHDWIRUSRUWDEOHRSHUDWLRQV 39&%/): /L)H32
3URYLGHV$SHDN$FRQWLQXRXV9DULDEOHRXWSXW9'&3UHVHW +52'LVFRXQW3ULFH
YROWDJHIXQFWLRQ3DWHQWSHQGLQJQRLVHRIIVHWFLUFXLWUHPRYHVSXOVHQRLVH
6KRUWFLUFXLWSURWHFWLRQ&RQYHQLHQWIURQWSDQHOFRQQHFWLRQV&LJDUHWWH
SOXJVRFNHW+523ULFH&DOO
%LRHQQR3RZHU%/):$
9$K/)3%DWWHU\
39&%/):$ /L)H32
+52'LVFRXQW3ULFH

6ZLWFKLQJ %LRHQQR3RZHU%/):$
0RGH'& 9$K/)3%DWWHU\
39&%/):$ /L)H32
3RZHU +52'LVFRXQW3ULFH
6XSSO\
*=9 %LRHQQR3RZHU%/)
$PS :$
9$K/)3%DWWHU\
7KH *=9 VZLWFKLQJ PRGH DQG DQ LQWHUQDO  RKP VSHDNHU 39&%/):$ /L)H32
'&SRZHUVXSSO\KDVDDPS 2SHUDWHVRQ9$&“ +52'LVFRXQW3ULFH
FRQWLQXRXVUDWLQJDWGXW\  +] 5LSSOH DQG QRLVH LV OHVV
F\FOH 7KH VXSSO\ KDV YDULDEOH WKDQP9UPV9$&PRGHOV
YROWDJHIURP9'&XVLQJD DOVRDYDLODEOHIRU*=9+52 %LRHQQR3RZHU%/):$
YROWDJHFRQWURONQREZLWKDFHQ 3ULFH 9$K/)3%DWWHU\
WHU GHWHQW DW  9'& 7KHUH 39&%/):$ /L)H32
LV RYHUORDG DQG VKRUW FLUFXLW +52'LVFRXQW3ULFH
SURWHFWLRQZLWKFXUUHQWIHHGEDFN
DW DSSUR[LPDWHO\  DPSV DQG
WHPSHUDWXUH SURWHFWLRQ ZLWK D %LRHQQR3RZHU%/):$
YDULDEOH VSHHG IDQ$Q$& OLQH 9$K/)3%DWWHU\
ÀOWHUJLYHV(0,SURWHFWLRQ7KH 39&%/):$ /L)H32
PHWHU VHOHFWRU DOORZV PRQL +52'LVFRXQW3ULFH
WRULQJ RI YROWDJH DQG FXUUHQW
*=9
3RZHU DQG RYHUORDG LQGLFDWRUV $PS
LQFOXGHG )URQW SDQHO '& WHU DPSYHUVLRQ99 3OHDVHQRWHWKDWWKHVHEDWWHULHVVKRXOGEHFKDUJHGXVLQJD/L)H32
PLQDOV D FLJDUHWWH OLJKWHU MDFN +523ULFH FRPSDWLEOHFKDUJHUDQGQRWZLWKDFKDUJHUIRU6/$EDWWHULHV

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


&$%/(&211(&7256
1L0+5HFKDUJHDEOH%DWWHULHV %DWWHU\$QDO\]HU &DEOH7LHV
,WҋVD:UDS

0RUHWKDQ<HDUV([SHUWLQ &RPSXWHUL]HG
5HFKDUJHDEOH%DWWHULHVDQG&KDUJHUV +DQG\7LHVIRU&DEOHV
%DWWHU\$QDO\]HU
7236(//(5 DQG2WKHU8QUXO\,WHPV

EDWWHULHVQRWLQFOXGHG

3RZHUH[0+&6
+523ULFH
‡&HOO6PDUW&KDUJHUIRU$$$$$1L0+%DWWHULHV
‡&KDUJHVEDWWHULHVLQDSSUR[LPDWHO\KRXUV &%$,9
‡:RUOGZLGHWUDYHOIULHQGO\
7KH&%$LVPXFKPRUHWKDQDVLPSOH
3RZHUH[0+5$$352 EDWWHU\YROWDJHWHVWHURUDEDWWHU\ORDG
WHVWHU 7KH &%$ ZLOO WHVW YLUWXDOO\ DQ\
+523ULFH
W\SHRUVL]HRIEDWWHU\DQ\FKHPLVWU\
‡ 6DYHXSWRRYHUWKHOLIHVSDQRIRQHEDWWHU\ DQ\ QXPEHU RI FHOOV XS WR  YROWV
‡ 3RZHUH[352$$P$KSDFN )RUWKHÀUVWWLPHDQGIRUDUHDVRQDEOH %RQJR7LHVKDYHKXQGUHGVRIXVHVDURXQG
‡ /RZ VHOIGLVFKDUJH EDWWHU SULFHDQ\RQHFDQGRVFLHQWLÀFWHVWVRI WKH RIÀFH KRPH JDUDJH VWXGLR DQG
LHVRSWLPL]HGIRUKLJKGUDLQ WKHLUEDWWHULHVE\OHWWLQJWKHLUFRPSXWHU LQGXVWU\  6WRS DQG ORRN DW DOO RI WKRVH
GHYLFHV  9ROWV 9GF  GR DOO WKH ZRUN 7KH &%$ LV FDSDEOH PHVV\ZLUHVEHKLQG\RXUFRPSXWHUULJKW
P$KFDSDFLW\ RIKLJKHUWHVWUDWHVWKDQRWKHUWHVWHUV QRZ  (DFK SDFN KDV  %RQJR7LHV VR
XS WR  DPSV RU  :DWWV ZKLFK WKLV RIIHU LV IRU D WRWDO RI  %RQJR7LHV
HYHULVKLJKHU,WQRWRQO\WHVWVWKHWRWDO 6WXUG\UHFORVDEOHEDJVZLWK]LSORFNWRSV
7235$7(' DPRXQW RI HQHUJ\ VWRUHG LQ D EDWWHU\ %RQJR7LHVDUHDSSUR[LQLQOHQJWKDQG
FDSDFLW\LQDPSKUV EXWLWJUDSKLFDO VWUHWFKWRDSSUR[LQ 1RWIRURXWGRRU
EDWWHU\
O\ GLVSOD\V DQG FKDUWV YROWDJH YHUVXV XVH +523ULFHIRUDEDJRI
DPSKRXUV  +52 3ULFH
&RQQHFWRUV 
&RD[:UDS
&RD[6HDO

&RD[6HDO

&RD[:UDSZLOOSURYGH\RXUFRD[
FRQQHFWLRQV ZLWK RXWVWDQGLQJ
&RD[6HDO ZLOO VHDO DOO W\SHV RI FRD[ SURWHFWLRQ IURP WKH
ÀWWLQJV EDOXQV DQWHQQD SDUWV DQG ZHDWKHU-XVWZUDSWKHFRQ
FRQQHFWRUV RI DQ\ VKDSH$GKHUHV WR QHFWLRQZLWKWKHFRQYHQLHQW
PRVWVXUIDFHV:UDS&RD[6HDODURXQG UROO:KHQ\RXQHHGDFFHVV
WKHREMHFW\RXZDQWWRSURWHFWDQGWKHQ WRWKHFRQQHFWLRQWKHZUDS
PROGLWLQWRVKDSH.HHSVPRLVWXUHRXW UHPRYHV HDVLO\ $YDLODEOH
RIWKHFRD[ÀWWLQJRQDQWHQQDIHHGOLQHV LQ  UHG ZKLWH EOXH FOHDU
1HHGWRPDNHDFKDQJH"-XVWUHPRYHLW DQGEODFN
DQGVWDUWRYHU+523ULFHUROO 3ULFHSHUUROO

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


&$%/($66(0%/,(6&211(&7256
&DEOH$VVHPEOLHV &DEOH

&$%/(;3(576
5HDG\0DGH&RD[&DEOH$VVHPEOLHV
;PTLZ
&DOOIRU/RZ'LVFRXQW3ULFHV
RQ7LPHV&DEOH
/05²5*W\SH
7KLVLVDVWDQGDUG5*
W\SH
RXWGRRUFDEOHWKDWLVLGHDO
IRUMXPSHUDVVHPEOLHVVKRUWDQWHQQDIHHGHUUXQVRU
DQ\DSSOLFDWLRQUHTXLULQJDQHDVLO\URXWHGORZORVV5)
FDEOH,WKDVDVROLG%&LQQHUFRQGXFWRUIRDPSRO\HWK\O
HQHGLHOHFWULFDOXPLQXPWDSHRXWHUFRQGXFWRUDWLQQHG
FRSSHURYHUDOOEUDLGDQGEODFNSRO\HWK\OHQHMDFNHW7KH
YHORFLW\IDFWRULV,WZLOOZLWKVWDQG9'&DSHDN
SRZHURIN:DQGVKLHOGLQJHIIHFWLYHQHVVLV!G%

/05²5*;W\SH
7KLV5*;
W\SH
RXWGRRUFDEOHKDVDVROLG%&LQQHU
FRQGXFWRUIRDPSRO\HWK\OHQHGLHOHFWULFDOXPLQXPWDSH
RXWHUFRQGXFWRUDWLQQHGFRSSHURYHUDOOEUDLGDQGEODFN
SRO\HWK\OHQHMDFNHW7KHYHORFLW\IDFWRULV,WZLOO
ZLWKVWDQG  9'& D SHDN SRZHU RI  N: DQG
VKLHOGLQJHIIHFWLYHQHVVLV!G%

/05²5*5*W\SH
7KLVLVDVWDQGDUG5*5*
W\SH
RXWGRRUFDEOHWKDW
KDVDVROLG%&&$LQQHUFRQGXFWRUIRDPSRO\HWK\OHQH
GLHOHFWULF DOXPLQXP WDSH RXWHU FRQGXFWRU D WLQQHG
FRSSHURYHUDOOEUDLGDQGEODFNSRO\HWK\OHQHMDFNHW7KH
YHORFLW\IDFWRULV,WZLOOZLWKVWDQG9'&DSHDN
SRZHURIN:DQGVKLHOGLQJHIIHFWLYHQHVVLV!G%

/058OWUD)OH[
6LPLODUVSHFVDV/05ZLWK73(MDFNHW

&RD[ &RQQHFWRUV

Z5LQJ7HUPLQDOV $QGUHZFRD[DQGDOOWKHPDWFKLQJFRQQHFWRUV\RXZLOO
QHHGDUHDYDLODEOHDVDVSHFLDORUGHUGURSVKLSPHQW
&RQWDFW\RXUQHDUHVW+52VWRUHIRUFRPSOHWHGHWDLOV

9LVLW+52RQWKH:HE#KDPUDGLRFRP  'LDPHWHU
0RGHO&DEOH7\SH,QFKHVIHHW
IRUWKH/DWHVWLQ0DQXIDFWXUHU·V6SHFLDOV $9$);)RDP'LHOHFWULFLQFK&$//
)6-%6XSHUÁH[LQFK&$//
   3OXV6KLSSLQJ

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


&2$;527$725&$%/(
:HKDYH5)FDEOHDYDLODEOHIURP
 0&7564+'5  0&7564+'5
&RPSOHWH3URGXFWDWWHQXDWLRQLQIRUPDWLRQRQ3DJH

$%5 ,QGXVWULHV PDQXIDFWXUHUV


FRD[ ZLWK D QRQFRQWDPLQDWLQJ 'LUHFW%XU\&DEOH

&$%/(;3(576
XOWUDYLROHW UHVLVWDQW DQG GLUHFW
$  89 UHVLVWDQW GLUHFW EXU\ 5*8
EXULDO MDFNHW &DEOHV DUH $PHUL
0LO6SHF Z3/ FRQQHFWRUV DQG$GKHVLYH
FDQ0DGHDQGDUHIXOO\WHVWHGDQG OLQHG +67 DW ERWK HQGV 6ROLG SRO\HWK\OHQH

 

UHDG\WRXVH GLHOHFWULF KLJK SRZHU EDQGV EHORZ 0+]
ZLWKDPSOLÀHUV

;PTLZ 'LUHFW%XU\&DEOH
4PJYV^H]L ;$7&OLJKWZHLJKWIRUPRELOHGLSROHDQWHQ
QDVRUMXPSHUVEHWZHHQHTXLSPHQWLQWLJKW
SODFHV5*; /05ŠW\SH ZLWK3/
&RD[ FRQQHFWRUV DQG DGKHVLYH OLQHG +67 DW ERWK
3XUFKDVHFRD[LQDQ\OHQJWKXSWRIHHW HQGV-DFNHWLV89UHVLVWDQWDQGGLUHFWEXULDO

5*8
6WDQGDUG5*8VWUDQGHGFRSSHUFHQWHU
FRQGXFWRUFHOOXODUSRO\HWK\OHQHLQVXODWLRQ
EDUHFRSSHUVKLHOG39&MDFNHWRKPLPSHG
DQFHYHORFLW\IDFWRUDQGG%ORVVSHU

 DW  0+] 7KH PRVW SRSXODU FDEOH IRU
+)9+)8+) 8VH ZKHQ ORQJ FDEOH UXQV DUH
QRWUHTXLUHG
) /05Š8) 89UHVLVWDQWGLUHFW
5*8 EXU\IRUIUHTXHQFLHVDERYH0+]3/
5*8FRD[VWUDQGHGFRSSHUFHQWHU FRQQHFWRUVDQGDGKHVLYHOLQHG+67DWERWKHQGV
FRQGXFWRU VROLG SRO\HWK\OHQH LQVXODWLRQ 
EDUH FRSSHU VKLHOG QRQFRQWDPLQDWLQJ 39&
MDFNHWRKPLPSHGDQFHYHORFLW\IDFWRU
DQGG%ORVVSHU
DW0+]7KLV5*
W\SHFDEOHLVEHVWIRU+),WPD\EHEXULHG

)
) LV 5*8W\SH FRD[  VWUDQGHG
FRSSHUFRQGXFWRUIRDPSRO\HWK\OHQHLQVXODWLRQ
IRLOSOXVEUDLGVKLHOG39&MDFNHW
RKPLPSHGDQFHYHORFLW\IDFWRUDQGG%
ORVVSHU
DW0+]7KHEHVWFDEOHIRU9+)
DQG8+)DSSOLFDWLRQV +7-XPSHUV
5*; $%5,QGXVWULHVQRZVXSSOLHV+7MXPSHUVLQ
5*; LV VPDOO GLDPHWHU FRD[  VWUDQGHG YDULRXV VKRUW OHQJWKV RI 5*8 7HÁRQŠ
FRSSHUFHQWHUFRQGXFWRUFHOOXODUSRO\HWK\OHQH µ2'
LQVXODWLRQEDUHFRSSHUVKLHOG39&MDFNHW ) /05Š8) 89UHVLVWDQWGLUHFW
RKPLPSHGDQFHYHORFLW\IDFWRUDQG 7KHVHFDQEHKDGLQDQGIRRW EXU\IRUIUHTXHQFLHVDERYH0+]1PDOH
G%ORVVSHU
DW0+]*RRGIRUVKRUW9+) OHQJWKVRI60$PDOHWR60$IHPDOHRUDQG FRQQHFWRUVDQGDGKHVLYHOLQHG+67ERWKHQGV
UXQVDQGPRVW+)XVHV IRRWOHQJWKVRI60$PDOHDWERWKHQGVRU
60$PDOHWR3/RU62
5RWDWRU&DEOH
ZLUHVWDQGDUGGXW\ZLUHFDEOHXVLQJVL[
*URXQG%UDLG
 DQG WZR  WLQQHG FRSSHU FRQGXFWRUV
39&LQVXODWLRQ $OVR DYDLODEOH DUH YDULRXV OHQJWKV RI LQFK
RUôLQFK7LQQHG&RSSHU)ODW*URXQG%UDLG
ZLUHKHDY\GXW\ZLUHFDEOHXVLQJ ZLWKõLQFKVWXGULQJWHUPLQDOV
DQG    WLQQHG FRSSHU FRQGXFWRUV 39&
LQVXODWLRQFKURPH39&MDFNHW $QG WKHUH DUH D IHZ GLIIHUHQW OHQJWKV RI
:KHQ2UGHULQJ&DEOH ôLQFKWLQQHGFRSSHUZLWK1LFNHO*URPPHWV
3OHDVHRUGHULQPXOWLSOHVRIIHHW&RQWLQXRXV DWµVSDFLQJIRUHDV\DWWDFKPHQWWRDYHKLFOH
OHQJWKVSRROVXSWRIHHWDUHDYDLODEOH&DOO ERG\RUWUXFNEHGWRFUHDWHD´JURXQGSODQHµ
IRUTXRWHV RUDQRSWLRQDVDEXVVEDULQWKHVKDFN

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


$17(11$781(56
'HVLJQHGE\+DPVIRU+DPV0DGHLQWKH86$
$7.
$QWHQQD7XQHU $7.
$QWHQQD7XQHU
7KH$7. WDNHV SRZHU KDQGOLQJ WR
7KH $7. KDV D SRZHU UDWLQJ
WKHQH[WOHYHORYHUWKH$7.FRP
RI:DWWVVLQJOHWRQHFRQ
LQJ LQ ZLWK D UDWLQJ RI  :DWWV
WLQXRXV
VLQJOHWRQHFRQWLQXRXVSHUIRUPDQFH
ZLWK ORZ ORVVHV DQG ZLGH = UDQJH ‡ 8QEDODQFHG  EDODQFHG RXW ‡  DPS HGJHZRXQG VLOYHU
3DOVWDUҋV$7.OLNHLWV$7.OLWWOHEURWKHUKDVD7PDWFKLQJQHWZRUNXWLOL] SXW VZLWFKDFWLYDWHGRQIURQW SODWHG FHUDPLF ERG\ UROOHU
LQJDXQEDODQFHGWREDODQFHGWUDQVIRUPHUDWWKH,1387RIWKHQHWZRUN SDQHO ZLWKKLJKSRZHUEDOXQ LQGXFWRUVFUDQNKDQGOHGULYHQ
‡ :DWWVVLQJOHWRQHKLJKHIÀ ‡  $PS  N9 &(5$0,& µ DWWKHLQSXWRIWXQHUFLUFXLW ‡ )HUULWHLQSXWEDOXQ
FLHQF\ORZWXQHUORVVHVDQGZLGH ERG\ UROOHU LQGXFWRU  —+  ‡ 7 PDWFK FLUFXLW LPSHGDQFH ‡ 3HDNSHDNKROGGXDOFURVV
=UDQJH ZRXQG ZLWK  JD SODWHG VROLG PDWFKLQJUDQJHRKPV QHHGOHPHWHULQJ VHFKROG 
‡ PWRPZLWKOLPLWHG=UDQJH FRSSHUZLUH ‡ &XVWRP ODUJH YDOXH SI  ZLWKEDFNOLJKW
RQP ‡ 6L[SRVLWLRQ VZLWFKDEOH DQWHQQD YDULDEOHFDSDFLWRUVDWN9 ‡ 6L]H[[GHHS
‡ %DODQFHGRXWSXWZLWKKLJKSRZHU LQSXW VZLWFK ZLWK  N9  $PS ‡ 6ZLWFKDEOHDQWHQQDLQSXWV ‡ :HLJKWOEV
 N: 7HÁRQŠ ZLUH EDOXQ DW WKH FRQWDFWV
LQSXWRIWXQHUFLUFXLW ‡ 3HDN DQG SHDN KROG GXDO FURVV $7
‡ )HUULWHLQSXWEDOXQ QHHGOH PHWHULQJ  VHF KROG 
‡ &XVWRP ODUJH SODWH YDULDEOH FD ZLWKEDFNOLJKWLQJ $QWHQQD7XQHU
SDFLWRUV S)#N9  ‡ )DQ FRROLQJ IRU H[WHQGHG 
GXW\F\FOHRSHUDWLRQ &RYHULQJ  WR  PHWHUV WKH
$7KDVDGLIIHUHQWLDOWXQLQJ
FDSDFLWRU ZLWK  VWDWRUV DQG 
URWRUDSUHFLVLRQFHUDPLFERG\
$7.' UROOHULQGXFWRUDQGDIHUULWHFXUUHQWEDOXQIRUEDODQFHGOLQHIHHGV
$QWHQQD7XQHU ‡ 3RZHUUDWLQJ:DWWV3(3 ‡ $FWLYH FURVVQHHGOH SHDN 
66%:DWWV&: SHDNKROGPHWHULQJZLWKEDFN
7KH$7'7DQGWKH$7.3KDYHEHHQFRPELQHGLQWRDQHZN:WXQHU
‡ 2XWSXW WR ERWK EDODQFHG DQG OLJKWLQJ
7KH$7.KDVDOORXUIHDWXUHVVXFKDVSHDNDQGSHDNKROGDUHVRQDQWIUHH
XQEDODQFHGOLQHV ‡ 0HWHU SRZHU UDQJH 
UROOHUV\VWHPWRRSHUDWHIURPPWRPFRQWLQXRXVO\QHZ/('OLWPHWHU
‡ ,PSHGDQFH PDWFKLQJ UDQJH :DWWV:DWWV
V\VWHPDQGDQHZFRPSDFWVL]H
RKPVWRRKPV ‡ 'LIIHUHQWLDO FDSDFLWRU WXQ
‡ $FWLYH SHDN DQG SHDN KROG GXDO
‡ 3RZHUUDWLQJ:DWWV3(3 ‡  SRVLWLRQ PRGH VZLWFK IRU LQJ ZLWK  VWDWRUV DQG  UR
FURVVQHHGOH PHWHULQJ  VHF
‡ )UHTXHQF\WXQLQJPWRP PXOWLSOHDQWHQQDV WRU S)S)S)#
KROG ZLWK/('EDFNOLJKWLQJ
‡ ,PSHGDQFH PDWFKLQJ UDQJH  N9 
‡ 'LIIHUHQWLDOFDSDFLWRUWXQLQJZLWK
RKPVWRRKPV VWDWRUVDQGURWRU S)S) 3DOVWDU3URGXFWV
‡ (DV\DQGTXLFNWXQLQJZLWKRQO\ S)#N9 
WZRFRQWUROV ‡ +LJKSRZHUIHUULWHRUFXU
‡ 3DOVWDUGHVLJQHGFHUDPLFERG\ UHQW EDOXQ RSWLRQDO  H[WHUQDOO\
UROOHULQGXFWRU LQVWDOOHG
‡ SRVLWLRQPRGHVZLWFKIRUPXO ‡ 6L]H[[
WLSOHDQWHQQDV ‡ :HLJKWOEV
‡ 0HWHUSRZHUUDQJH:DWWV 2SWLRQDORU&XUUHQW%DOXQ
:DWWV DYDLODEOH

$7.
$QWHQQD7XQHU
7KH VPDOOHU UROOHU LQGXFWRU DOORZV
WKH$7.WRWXQHPHWHUVZKLOHD
UHOD\VZLWFKHGWRURLGDGGVWKHH[WUD
LQGXFWDQFH QHHGHG IRU  PHWHU
FRYHUDJH1HZO\GHVLJQHGFDSDFLWRUVIHDWXUHORZHUPLQLPXPFDSDFLWDQFH
IRU LPSURYHG KLJK EDQG SHUIRUPDQFH ZKLOH PD[LPXP FDSDFLWDQFH KDV
EHHQLQFUHDVHGWRS)IRUEHWWHUORZEDQGSHUIRUPDQFH
‡ 3RZHUUDWLQJ:DWWV3(3 ‡  —+  N9 FHUDPLF ERG\ UROOHU
‡ ,PSHGDQFHUDQJHWRRKP LQGXFWRUZLWKWXUQVFRXQWHU
PWRP DVVXPLQJUHVLVWLYH ‡ 6LOYHUSODWHGLQGXFWRUZKHHOVKDIW
ORDG  DQGFRQWDFWZKHHO
‡ /RZ PLQLPXP FXVWRP YDULDEOH ‡ $FWLYH SHDN  SHDN KROG FURVV
FDSDFLWRUV S)WRS)DW QHHGOHPHWHULQJZEDFNOLJKWLQJ
N9  ‡ SRVLWLRQFHUDPLFZDIHUDQWHQQD
‡  —+ UHOD\VZLWFKHG DGGRQ LQ VHOHFWRUVZLWFK
GXFWRU IRU  PHWHUV UROOHU LQ 2SWLRQDORU&XUUHQW%DOXQ
GXFWRUZLWKWXUQVFRXQWHU DYDLODEOH

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


$17(11$781(56
6PDUWXQHUVŒDUHWKHPRVWYHUVDWLOHDQGUHOLDEOHDQWHQQDFRXSOHUVDYDLODEOH:RUNLQJZLWKSRZHU
OHYHOVIURPWR:DWWVDQGZLWKIUHTXHQF\UDQJHVVSDQQLQJWKH+)EDQGVIURPDVLQJOHDQWHQQD
WKH\SURYLGHDOOSXUSRVHWXQLQJLGHDOIRUEDVHPRELOHRUSRUWDEOHRSHUDWLRQ-XVWSURYLGH9FRQQHFW
WRWUDQVFHLYHUDQWHQQDDQGJURXQGDQGJHWRQWKHDLUZLWKPLQLPXP6:59LVLWVJFZRUOGFRPIRUD
GHWDLOHGUHYLHZRIWKH6PDUWXQHUIDPLO\DQGÀQGWKHULJKWRQHIRU\RXUQHHGV6WRSWXQLQJVWDUWWDONLQJ

7KH2ULJLQDO 7KH*HQHUDO3XUSRVH
6PDUWXQHUŒ 6PDUWXQHUŒ
6*
6* 
 7KH 6* LV
WKH PRVW SRSXODU
7KH 6* 6PDUWXQHU ZDV
6PDUWXQHU,WVUXJ
WKH ÀUVW SURGXFW LQ WKH +)
JHG FRQVWUXFWLRQ
PDUNHW WR RIIHU IDVW ÁH[LEOH
DQG VPDOO VL]H DO
WXQLQJ ZLWKRXW DQ\ XVHU LQ
ORZ IRU PD[LPXP
WHUIDFH,WLVEXLOWLQDUXJJHG
ÁH[LELOLW\ ,W KDV D
IDFWRU\VHDOHG$%6HQFORVXUH:LWKWKLV
 : SRZHU UDW
WXQHUDQGDQ\VLQJOHDQWHQQD\RXZLOOKDYH
LQJDQGH[SDQGHG
FRQWLQXRXVFRYHUDJHIURPWR0+]DQGLWFDQEHXVHGZLWKDQ\WUDQVFHLYHU\RXҋOOHYHU
FRYHUDJH WR 
RZQ7KH6*FDQEHXVHGLQEDVHVWDWLRQPRELOHPDULQHDQGDYLDWLRQDSSOLFDWLRQVDQG
0+] PDWFKLQJ LW
KDVEHHQWKH´*ROG6WDQGDUGµRIDXWRPDWLFDQWHQQDWXQLQJIRUPRUHWKDQDGHFDGH
SHUIHFWO\ ZLWK WKH
PRVWSRSXODU+)
7KH%XGJHW6PDUWXQHUΠ+)$QWHQQD&RXSOHU PWUDQVFHLYHUV,W
6* 6* ZLOO ZRUN ZLWK DQ\
EDODQFHGRUXQEDODQFHGDQWHQQDLQFOXG
 
LQJZKLSVEDFNVWD\VGLSROHVORRSVDQG
ORQJZLUHV

0RELOH7XQHU
7 K L V
IXOO\ DXWR
PDWLF FRX
SOHU IRU 
*HWTXDOLW\SHUIRUPDQFHIURPDORZFRVWSDFN :DWWV ZLOO WXQH
DJH7KH6*ZLOORSHUDWHIURPWR DQDQWHQQDDWOHDVW
0+]ZLWKWR:/LNHDOO6PDUWXQHUV IHHWORQJIRUWKH+)EDQGV7KH6*
LWJLYHV\RXWKHPRVWÁH[LELOLW\EHFDXVHLWZLOO DXWRPDWLFDOO\HYDOXDWHVDQGVZLWFKHVLQSXW
ZRUNZLWKDQ\DQWHQQDDQGDQ\WUDQVFHLYHU DQG  RXWSXW FDSDFLWRU FRPELQDWLRQV SOXV
,W DOVR KDV SXVK EXWWRQV IRU D PDQXDO WXQH LQGXFWDQFHFRPELQDWLRQVLQDSLQHWZRUN
RSWLRQ,WZHLJKVRQO\SRXQGVVR\RXFDQ GHVLJQ 7KH WXQHU UHPHPEHUV WKH FKRVHQ
XVHLWIRUEDVHRUSRUWDEOH IUHTXHQF\DQGWXQLQJYDOXHVDQGDXWRPDWLFDOO\
UHVHOHFWVWKRVHYDOXHVZKHQWUDQVPLWWLQJRQ
WKDWIUHTXHQF\
6*&6PDUWXQHUV
7$5*(7XQHU
+523ULFH

7$5*(7XQHU PRELOH DQWHQQD PDQDJHPHQW V\V


WHP SURYLGHV D FRQWUROOHU ZLWK LQWHOOLJHQW DXWR
PDWLFFRQWUROVIRUWKHWXQDEOHPRELOHVFUHZGULYHU
DQWHQQDDQGDUHPRWH5)PRGXOH
‡ 6HQVHV5)VLJQDOLQWRWKHDQWHQQD
‡ 1RUDGLRGDWDOLQNUHTXLUHGIRUEDQGVHOHFWLRQ
‡ 'LUHFWLRQVZLWFKDQGPRWRUFRQWURORIVSHHGDQG
GLUHFWLRQ
‡ 3URJUDPPDEOHIRUVWDOOFXUUHQWVHQVLQJ
‡ (DV\SURJUDPPLQJDQGPHPRU\FDSDELOLWLHV
‡ $XWRWXQLQJ

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


$17(11$781(56
,FRP0DWFKLQJ
<DHVX0DWFKLQJ

,7
(VSHFLDOO\IRU
,FRP5DGLRV

7KHLGHDOWXQHUIRU,&DQGRWKHU,FRPUDGLRVFRYHUVDOOIUHTXHQFLHVIURP
²0+]DQGZLOODXWRPDWLFDOO\PDWFK\RXUDQWHQQDLQDÁDVK7XQHVWR
= :DWWV66%&:DQGGLJLWDOPRGHV+DVDIURQWSDQHOSXVKEXWWRQIRUPDQXDO
RUDXWRPDWLFWXQHSOXVDVWDWXV/('7XQHZLWKWKH,7RUXVH\RXUUDGLR,Q
$XWRPDWLF7XQHUIRUWKH<DHVX)7 FOXGHVPRUHWKDQPHPRULHV8VHVODWFKLQJUHOD\V7XQLQJUDQJHLV²
7KH = DXWRPDWLF WXQHU RSHUDWLQJ RQ  ²  PHWHUV DW RKPVSRZHUHGE\\RXUUDGLR,QFOXGHV,FRPLQWHUIDFHFDEOH+523ULFH
WDFKHVWRWKH&$7SRUWZLWKWKHSURYLGHGFDEOH3UHVVWKH2QH
7RXFK7XQHEXWWRQRQWKHWXQHUDQGWKH=VHWVPRGHDQG
SRZHURQWKHUDGLRWXQHVWKHQUHVWRUHVPRGHDQGSRZHU7XQ
LQJWLPHLVVHFRQGVIRUUHFDOOLQJRQHRILWVPHPRULHV
5HPRWH7XQHUV
DQGDYHUDJHWLPHIRUDIXOOLVVHFRQGV7KH=DOVRZRUNV
ZLWK DQ\ 453 UDGLR ZLWK RXWSXW RI XS WR  :DWWV 3UHVV WKH $7HFKQRORJLFDO%UHDNWKURXJKLQ5HPRWH7XQLQJ
WXQHEXWWRQRQWKHWXQHUZKLOHWUDQVPLWWLQJDFDUULHUDQGLWÀQGV
DPDWFK,QFOXGHVRQHIRRW&$7LQWHUIDFHFDEOH+DV&$7WKUX
SRUW WR DOORZ FRPSXWHU FRQWURO RI UDGLR 7XQLQJ UDQJH RI 6:5
ORDGVIURPWRRKPV,WLVSRZHUHGE\IRXU$$EDWWHULHV QRW
LQFOXGHG 6L]HLV[[µ+523ULFH
57
5&

$XWRPDWLF$QWHQQD7XQHU
5HPRWH&RQWURO
7KH57LVDZDWW3(3FRD[LQFRD[RXWUHPRWHWXQHUGHVLJQHGWREH
<7 SODFHG QHDU WKH IHHGSRLQW RI WKH DQWHQQD ,I \RX DUH ZRUULHG DERXW SRZHU RU
VLJQDOORVVGXHWR6:5LQ\RXUIHHGOLQHWKH57LVWKHDQVZHU3ODFHWKH57
$XWR7XQHUIRU<DHVX7UDQVFHLYHUV QHDUWKHIHHGSRLQWDQGLWZLOOYLUWXDOO\HOLPLQDWHDOOIHHGOLQHORVVGXHWR6:5
7KH <7 LQFOXGHV D FDEOH WKDW FRQQHFWV ZLWK \RXU )7 '&SRZHUHGRYHUWKHFRD[E\WKH5&FRQWUROXQLW LQFOXGHG 
)7 RU )7 LQFOXGLQJ DOO ' PRGHOV  WR PDNH LW DQ LQWH ‡ PHPRULHVIRULQVWDQWDQHRXVEDQGFKDQJLQJ
JUDWHG WXQHU SRZHUHG E\ WKH LQWHUIDFH 3UHVV WKH WXQH EXWWRQ ‡ WR0+]FRYHUDJH%XLOWLQIUHTXHQF\VHQVRU
DQG HYHU\WKLQJ HOVH KDSSHQV DXWRPDWLFDOO\ PRGH DQG SRZHU ‡ )RUGLSROHVYHUWLFDOV9VEHDPVRUDQ\FRD[IHGDQWHQQD2SWLRQDOH[WHUQDO
DUHVHWDWXQHF\FOHUXQVDQGWKHUDGLRLVUHWXUQHGWRLWVRULJLQDO EDOXQDOORZVWXQLQJRIUDQGRPOHQJWKORQJZLUHRUODGGHUOLQHIHGDQWHQQDV
VHWWLQJV+DQGOHV5)SRZHUIURPWR:DWWV&$7WKUXSRUW +523ULFH
IRUUDGLRFRPSXWHUFRQWUROPHPRULHV²0+]FRYHU
DJH+523ULFH

57
5&

$XWRPDWLF$QWHQQD7XQHU
5HPRWH&RQWURO
<7 3ODFHWKLVZDWWFRD[LQFRD[RXWWXQHUQHDUWKHIHHG
'HVNWRS7XQHUIRU<DHVX7UDQFHLYHUV SRLQWRIWKHDQWHQQDDQGLWZLOOYLUWXDOO\HOLPLQDWHDOOIHHGOLQH
ORVVGXHWR6:57KH57LV'&SRZHUHGRYHUWKHFRD[
6HDPOHVVLQWHJUDWLRQZLWK)7VHULHV)7)7G[DQG VRQRH[WUDFDEOHVDUHQHHGHG$GG\RXURZQ'&LQMHFWLRQ
)7G[7KH<7LQFOXGHVD&$7SRZHUFDEOH-XVWSUHVV FLUFXLWRUXVHWKH/'*5&WRSRZHUDQGFRQWUROWKHWXQHUIURP\RXUVKDFN
WKHEXWWRQRQWKHWXQHUDQGHYHU\WKLQJHOVHKDSSHQVDXWRPDWL
FDOO\7KHPRGHLVVHWWRFDUULHUDWXQHF\FOHUXQVDQGWKHUDGLR 7KH 5& ZLOO SURYLGH '& SRZHU RYHU WKH FRD[ DV ZHOO DV FRQWURO IRU DXWR
LVUHWXUQHGWRLWVRULJLQDOVHWWLQJV+523ULFH PRGHORFNDQGWXQH+523ULFH

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


781(56
/RZ&RVW7XQHU
7XQH7ZR$QWHQQDV

=3OXV
$73UR,,
'HÀQLWLYHORZFRVWDXWRWXQHU
7KH $73UR,, IHDWXUHV DQ DXWR PRGH WKDW DXWRPDWLFDOO\ VWDUWV D WXQLQJ 'HVLJQHGWRSURYLGH:DWWSRZHUKDQGOLQJLQ66%&:DQG
F\FOHDQ\WLPHWKH6:5H[FHHGVDOLPLW\RXVHW7XQHWZRDQWHQQDVDQGVZLWFK GLJLWDOPRGHVWKH=3OXVIHDWXUHVPHPRULHVWKDWVWRUH
EHWZHHQWKHPPHPRULHVVWRUHWXQLQJSDUDPHWHUVIRUHDFKDQWHQQD7KH ERWKIUHTXHQF\DQGWXQLQJSDUDPHWHUV2SHUDWLQJIUHTXHQFLHVDUH
XQLWRSHUDWHVDWDQ\SRZHUOHYHOEHWZHHQDQG:DWWVSHDN5)LQSXW$ VWRUHGZLWKWXQLQJSDUDPHWHUVWRPDNHPHPRU\WXQHVLQDIDVW
ODUJHHDV\WRUHDG/('EDUJUDSKKDVWZRVHOHFWDEOHUDQJHV,WZLOOWXQHIURP VHFRQGV)XOOWXQHVWDNHDQDYHUDJHRIRQO\VHFRQGV7KHWXQHU
WR0+]PDWFKLQJDZLGHUDQJHRIDQWHQQDV ZLOOUXQRQDQ\YROWDJHVRXUFHIURP²YROWV6L[$$EDWWHULHV
+523ULFH$73UR,, QRWVXSSOLHG ZLOOUXQLWIRUD\HDURIQRUPDOXVH+523ULFH

3RUWDEOH7XQHU

$73UR,,
7KLVDXWRPDWLFGHVNWRSWXQHUFRYHUV²0+]$WZRSRVLWLRQDQWHQQDVZLWFK
DOORZV\RXWRVZLWFKLQVWDQWO\EHWZHHQWZRDQWHQQDV7KH$73UR,,UHTXLUHV
MXVW:DWWIRURSHUDWLRQEXWZLOOKDQGOHXSWR:DWWVPDNLQJLWVXLWDEOHIRU =3UR,,
HYHU\WKLQJIURP453WRDW\SLFDO:DWWWUDQVFHLYHU,WLQFOXGHVPRUHWKDQ
PHPRULHVIRUHDFKDQWHQQDDXWRPDWLFDOO\VWRULQJWXQLQJFRQÀJXUDWLRQV 1RZ,QFOXGHV%DWWHU\3DFN
IRUHDFKIUHTXHQF\DQGEDQGDV\RXXVHWKHP,QFOXGHVDQWHQQDDQGE\SDVV +HUHLVHYHU\WKLQJ\RXQHHGLQDVPDOOSRUWDEOHWXQHUGHVLJQHG
LQGLFDWRUVRQIURQWSDQHO+523ULFH$73UR,, IRU EDWWHU\ RSHUDWLRQ 2QO\  [  [  DQG ZHLJKLQJ 
SRXQGVLWKDQGOHVWR:DWWVPDNLQJLWLGHDOIRUERWK453
DQG VWDQGDUG :DWW WUDQVFHLYHUV IURP  ²  PHWHUV :LWK
PHPRULHVWKH=3UR,,XVHVDVWDWHRIWKHDUWSURFHVVRU
FRQWUROOHGVZLWFKHG/WXQLQJQHWZRUN,WPDWFKHVGLSROHVYHUWLFDOV
LQYHUWHG9VRUYLUWXDOO\DQ\FRD[IHGDQWHQQD:LWKDQRSWLRQDO/'*
EDOXQLWZLOODOVRPDWFKORQJZLUHVRUDQWHQQDVIHGZLWKODGGHUOLQH
+523ULFH

$73UR,, +LJK3RZHU7XQHU
7KH$73UR,,ZLOOKDQGOHXSWR:DWWV66%DQG&:RQ577< ²
0+] :DWWVRQ0+]
‡ 3URFHVVRUFRQWUROOHGVZLWFKHG/WXQHU
‡ 0DWFKHVFRD[IHGDQWHQQDV0DWFKHV6:5GRZQWR
‡ 8VHZLWKORQJZLUHVUDQGRPZLUHVDQGDQWHQQDVIHGZLWKODGGHUOLQHE\DGG
LQJDQRSWLRQDOEDOXQ
‡ 7ZRDQWHQQDSRUWV
‡ 5HTXLUHV9'&DWP$
+523ULFH$73UR,,

$73UR,,
$OO/'*SURGXFWV 7KH$73UROOKDQGOHVXSWR:DWWV66%RU&:RQ²
0+]DQG:DWWVRQ0+] LQFOXGLQJ0HWHUV 5XJJHG
FRPHZLWKD DQGHDV\WRUHDG/('EDUJUDSKVVKRZSRZHUDQG6:5$IXQFWLRQ

7ZR<HDU7UDQVIHUDEOH:DUUDQW\ NH\RQWKHIURQWSDQHODOORZV\RXWRDFFHVVGDWDVXFKDVPRGH
DQGVWDWXV$Q/('LQGLFDWHVE\SDVVPRGHDQGDQRWKHUVKRZV
ZKLFKDQWHQQDLVVHOHFWHG+523ULFH

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


0$18$/$17(11$781(56
+)6ZLWFKHG,QGXFWRU7XQHUV

+)5ROOHU,QGXFWRU

0)-+ 0)-(
0RUH KDPV XVH 0)-V WKDQ DQ\ RWKHU DQ
0)-EULQJV\RXWKHZRUOGҋVVPDOOHVWIXOOSRZHU
WHQQDWXQHU:DWWVWR0+]FXVWRP
:DWW0HWHU$QWHQQD7XQHUWR
LQGXFWRUVZLWFKYROWWXQLQJFDSVIXOOVL]H
0+] ² ZLWK  EDOXQ$1' 6:5  :DWWPHWHU
SHDN  DYHUDJH OLJKWHG FURVVQHHGOH 6:5 
0)-' ([WUDZLGHPDWFKLQJUDQJHOHWV\RXWXQHQHDUO\
:DWWPHWHU  SRVLWLRQ DQWHQQD VZLWFK GXPP\
+DQGOHV  .: 3(3 66% DPSOLÀHU LQ DQ\DQWHQQD,WVQRWR\²LWVJRWJXWV%XLOWZLWK
ORDGVFUDWFKSURRI/H[DQŠIURQWSDQHO+
SXW SRZHU  : RXWSXW  3HDNUHDGLQJ UHDO DLU YDULDEOH FDSDFLWRUV  9ROW  S) 
[:['LQFKHV
FURVVQHHGOH6:5:DWWPHWHU$LU&RUH70 DQGWKUHHVWDFNHGSRZGHULURQWRURLGVWRKDQGOH
UROOHULQGXFWRU UHDO SRZHU  QRW MXVW 453 %\SDVV VZLWFK OHWV
\RX E\SDVV WXQHU ZKHQ \RX GRQҋW QHHG LW<RX
FDQXVHQHDUO\DQ\WUDQVFHLYHUDWIXOOSRZHUZLWK
QHDUO\DQ\FRD[IHGRUUDQGRPZLUHDQWHQQDIRU
SRUWDEOH KRPH RU PRELOH RSHUDWLRQ 62
FRQQHFWRU[[LQFKHV
0)-
(FRQRP\ YHUVLRQ RI 0)- ( OHVV GXPP\
ORDG/H[DQŠIURQW

0)-
&RYHUVWKUXPHWHUV:DWWV3(3
66% 7UXH$FWLYH70 SHDNUHDGLQJ 6:5 
:DWWPHWHUDQWHQQDVZLWFKEXLOWLQGXPP\ 0)-%
7LQ\7UDYHO7XQHU[[µIXOO:
ORDGEDOXQ/H[DQŠIURQWSDQHO
0WXQHUE\SDVVVZLWFK
0)-(
+[:['LQFKHV +)PHWHUPRELOHWXQHU([WHQGVPRELOHDQ
WHQQDEDQGZLGWK7LQ\[[µÀWVHDVLO\LQFDU

0)-% 0)-(
:LGHUDQJH:DWW3(3YHUVDWXQHU&RYHUV 6XSHUYDOXHWXQHUKDQGOHV:DWWV3(3FRY
WR0+] HUV  0+] OLJKWHG FURVVQHHGOH 6:5 
0)-' :DWWPHWHU SRVLWLRQ DQWHQQD VZLWFK  EDO
7KH ZRUOGҋV PRVW SRSXODU OHJDO OLPLW DQ
0DQXDO7XQHUV XQYROWFDSDFLWRUV
WHQQD WXQHU (DVLO\ KDQGOHV  :DWWV
66%&:WR0+]LQFOXGLQJ0$56
:$5&EDQGVS)DLUYDULDEOHFDSDFL
WRUV$LU&RUH70UROOHULQGXFWRUZLWKIDVWWXQH
FUDQN NQRE 7UXH$FWLYH70 SHDNUHDGLQJ
FURVVQHHGOH 6:5  :DWWPHWHU KLJK YROW
DJHFXUUHQWEDOXQPRUH:[+[ 0)- 0)-
'LQFKHV  0HWHU 7XQHUV 0)- KDV OLJKWHG &URVV $UWLÀFLDO5)*URXQG&UHDWHVDUWLÀFLDO5)JURXQG
1HHGOH 6:5:DWWPHWHU ZLWK E\SDVV VZLWFK RUHOHFWULFDOO\SODFHVIDUDZD\5)JURXQGGLUHFW
+DQGOHV : )0: 66%  0)- LV O\DWULJ,QFOXGHV:WXQHUZLWKFURVVQHHGOH
ZLWKRXW6:5:DWWPHWHUDQGE\SDVVVZLWFK 6:5:DWWPHWHU

0)- 0)-
6LPLODU WR 0)-' EXW ´'µ KDV NQRE 0)- 3RUWDEOH453WXQHUWXQHVFRD[EDODQFHGOLQH
WXQLQJ GLIIHUHQWLDOFDSDFLWRUDQG$LU&RUH70 9+)8+)7XQHUV0)-FRYHUV UDQGRP ZLUH  0+]     RU  :DWW
UROOHU LQGXFWRU  WR PDNH WXQLQJ IRROSURRI 0+] 0)- FRYHUV  0+= %RWK LQFOXGH UDQJHV 0DWFKHV 0)- 453 ULJV  [  [
DQGHDVLHUWKDQHYHU 6:5:DWWPHWHU:[+[' LQFKHV

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


$872781(56 &2$;6:,7&+(6
$XWRPDWLF7XQHUV 6XUJH3URWHFWRU

0)-

0)-%
:DWWDXWRPDWLF+)DQWHQQDWXQHULVOLNH 0)-,.<
WKH0)-EXW\RXFDQVHOHFW:DWWV )URPWR:DWWVDXWRPDWLFDQWHQQDWXQ
 2KPV PDWFKLQJ UDQJH  RU  HU3OXJDQG3OD\IRU,&20<DHVX$OLQFR
:DWWV 2KPVPDWFKLQJUDQJH $OVR DQGRWKHU+)ULJV+DVPHPRULHV 6DIHJXDUG \RXU H[SHQVLYH JHDU IURP VWDWLF HOHF
KDVFXUUHQWEDOXQUHPRWHFRQWUROSRUW FRYHUV0+]SRZHUHGE\WUDQVFHLYHU WULFLW\ DQG OLJKWQLQJ LQGXFHG VXUJHV WUDYHOLQJ RQ
DQGLQFOXGHVLQWHUIDFHFDEOH5HTXLUHVDG 2KPFRD[LDOOLQH8OWUDIDVWJDVGLVFKDUJHWXEH
MXVWPHQW RI LQWHUQDO MXPSHU DQG FDEOH IRU VDIHO\ VKXQWV XS WR  DPSV RI SHDN LPSXOVH
VSHFLÀFUDGLR$XGLR6:5PHWHUVPDOOVL]H FXUUHQW KDUPOHVVO\ WR DQ LQGHSHQGHQW JURXQG
LQVWDQWUHFDOODQGIDVWWXQLQJ 6:5OHVVWKDQ/HVVWKDQG%ORVV8VH
XSWR0+]+DQGOHV:3(3
0)-1KDVORZORVV1FRQQHFWRUV
0)-% 0)-ZLWK62VKDQGOHVN:3(3
 :DWW ,QWHOOL7XQHU70 /LNH 0)-%
EXW KDV  9LUWXDO$QWHQQD70 PHPRULHV +)$QWHQQD6ZLWFKHV
DQGKDQGOHV:DWWV&:66%PDWFKHV
2KPV'RHVQRWKDYH/&'GLVSOD\
DQWHQQDVZLWFKRUEDOXQ
0)-
 :DWW DXWRPDWLF +) DQWHQQD WXQHU LQ D
FRPSDFW VL]H  : [  + [  ' 0)-&
LQFKHV 8OWUDIDVW  9LUWXDO$QWHQQD70  SRVLWLRQ DQWHQQD FRD[
0HPRULHV DQWHQQD VZLWFK HIÀFLHQW /QHW VZLWFK 1HZ FHQWHU JURXQG
ZRUNPDWFKHV2KPV0+] OLJKWQLQJ DUUHVWRU  N: 3(3
'LJLWDO6:5:DWWPHWHUUDGLRLQWHUIDFH  N: &: /RVV EHORZ  G%  G% LVRODWLRQ #
0)- 0+]RKPV[[LQFKHV
:DWWV66%&:,QWHOOL7XQHU70'LJLWDO
DQGDQDORJ6:5:DWWPHWHUXOWUDIDVWDX
WRPDWLF WXQLQJ ZLGH UDQJH  2KPV
IURPWR0+] UDGLRLQWHUIDFHVEXLOW
LQ DQWHQQD VZLWFK IRU WZR FRD[  ORQJ ZLUH 0)-
/LNH0)-&
DXWRPDWLF E\SDVV WR SURWHFW \RXU DPSOLÀHU
SRVLWLRQV[[
ÀHOGXSJUDGHDEOHVRIWZDUH0)-57ZLWK
0)-%LDV7HHDOVRDYDLODEOHIRUUHPRWH LQFKHVRKPORDG
XVH 6:5WR0+]
0+]62

0)-%
:+)UHPRWHDXWRPDWLFWXQHU0DWFKHV
UDQGRP ZLUH RU FRD[ IHHG )XOO\ ZHDWKHU
VHDOHG IRU UHPRWH RXWGRRUPDULQH XVH ,Q
0)-% FOXGHV0)-%LDV7HH
)LUVWGXDOSRZHUOHYHO$XWRPDWLF7XQHU
:   2KPV  :   2KPV 0)-
 YLUWXDO DQWHQQD PHPRULHV &URVV  SRVLWLRQ DQWHQQD VZLWFK  RKPV +DQGOHV
QHHGOH6:5:DWWPHWHU N:3(3RUN:&:0+]62FRQ
QHFWRUV8QXVHGSRVLWLRQVDXWRPDWLFDOO\JURXQGHG
5DQGRP:LUH0DQXDO

0)-&
 SRVLWLRQ DQWHQQD
0)- DQG WUDQVFHLYHU VZLWFK
 VZLWFKHV EHWZHHQ 
5DQGRP :LUH DQWHQQDV DQG  ULJV
7XQHU 2SHUDWH 0)- +DQGOHVN:3(3RU
DOOEDQGVDQ\ZKHUHZLWK0)-ҋVUHYHUVLEOH/ :HDWKHU SURWHFWHG IXOO\ DXWRPDWLF UHPRWH N:&:WR0+]
QHWZRUN0+]:3(37LQ\DW DXWRWXQHUIRUZLUHDQGFRD[DQWHQQDV
:[+['7XUQVDUDQGRPZLUHLQWRD :SRZHUVWKURXJKFRD[QRVHSDUDWHSRZ
SRZHUIXOWUDQVPLWWLQJDQWHQQD HUFDEOHQHHGHG

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


/,*+71,1*3527(&7,21 &2$;6:,7&+(6
/LJKWQLQJ3URWHFWHG&RD[6ZLWFKHV
7UDQVL7UDSV

'HOWD% $QWHQQD6HOHFWRU&RQVROH
'HVNWRS&RD[6ZLWFK
3RVLWLRQ
6ZLWFK
7KLV OLJKWQLQJ
SURWHFWHGSR
VLWLRQ 5) FRD[
VZLWFK XVHV WKH $OSKD 'HOWD $5&3/8*Š
FDUWULGJH WR SURWHFW \RXU HTXLSPHQW IURP
HOHFWULFDO VXUJHV 7KH H[FOXVLYH FHQWHU RII
JURXQG  SRVLWLRQ LQWHUQDOO\ GLVFRQQHFWV DQG
JURXQGVDOODQWHQQDFLUFXLWV,WKDVFDVWKRXV
LQJZLWKFRQVWDQWLPSHGDQFHPLFURVWULSFDYLW\ 7KH$77*FRD[LDOVXUJHSURWHFWRUZDVGH
7 K L V  V H U L H V VLJQHGIRUWKHFHOOXODUPLFURZDYHSRLQWWRSRLQW
FRQVWUXFWLRQ)HDWXUHVDSRVLWLYHGHWHQWUROOHU UHWDLQV DOO WKH
EHDULQJVZLWFKGULYH+DQGOHVIXOOOHJDOSRZHU DQG WKH EURDGEDQG ZLUHOHVV LQGXVWU\ 7KHVH
IHDWXUHVDQGVSHFLÀFD SURGXFWV IHDWXUH YHU\ ORZ ORVV SHUIRUPDQFH
'HOWD1IRUW\SH1FRQQHFWRUV7KH'HOWD WLRQVRIWKHSUHFLVLRQ'(/7$%VHULHVLQFOXG
KDQGOHVIUHTXHQFLHVWKURXJK0+]DQGWKH WKURXJK*+]IRU1PRGHOVDQG0+]IRU
LQJ$5&3/8*ŠPRGXOHVXUJHSURWHFWLRQLQD 8PRGHOV7\SLFDOORVVLVG%DW*+]
'HOWD1WKURXJK*+]+523ULFH GHVNWRSFRQVROHWKDWZLOOVLWULJKWQH[WWRWKH
7\SH1 WKURXJKG%DW*+]7KLVVHULHVUHSUHVHQWV
HTXLSPHQWRQ\RXUGHVNZLWKRXWKDYLQJWREH WKHORZHVWORVVEURDGEDQGGHVLJQLQWKHLQGXV
VHFXUHGRUEROWHGGRZQ7KHFRQVROHIHDWXUHVD WU\&KRRVHFRQQHFWRUW\SH´1µ 1PRGHOV 
SRZGHUFRDWHGVWHHOKRXVLQJDQGDVROLGEUDVV RU´8+)µ 8PRGHOV 
JURXQGEXVVZLWKZLUHDWWDFKPHQWKDUG
'HOWD% ZDUHDFURVVWKHUHDURIWKHKRXVLQJSURYLGLQJD 7KH 'HIHQVH /RJLVWLF$JHQF\ '/$  KDV DV
FRPPRQJURXQGSRLQWIRUDOOVWDWLRQHTXLSPHQW VLJQHG 1DWLRQDO 6WRFN 1XPEHU 161   
DQGDFFHVVRULHV  WR WKH 0RGHO 77* &RD[ 6XUJH
3RVLWLRQ 3URWHFWRU DQG 161    WR WKH
0RGHO $6&% $QWHQQD 6HOHFWRU &RQVROH *$5&3/8*Š&DUWULGJHIRUXVHLQDOO86
6ZLWFK 6ZLWFK SRVLWLRQ8+)&RQQHFWRUVWKUX
7KLV  SRVLWLRQ 0LOLWDU\DQG1$72DSSOLFDWLRQVZRUOGZLGH
0+] +523ULFH
FRD[ VZLWFK KDV WKH VDPH IHDWXUHV DV WKH $77*1
'HOWD2UGHU8+)RUW\SH1FRQQHFWRUVIRU 0RGHO$6&%1$QWHQQD6HOHFWRU&RQVROH  :²*+]7\SH1 
ORZORVVSHUIRUPDQFHWKURXJK*+]+52 6ZLWFK SRVLWLRQ1&RQQHFWRUVWKUX*+] 
3ULFH7\SH1 +523ULFH $77*1+3
 N:²*+]7\SH1 
$77*8
+)$QWHQQD6ZLWFKHV  :²0+]8+) 
$77*8+3
 N:²0+]8+) 

3RVLWLRQ *URXQG&ODPS
&RD[6ZLWFK
3RVLWLRQ
&RD[
6ZLWFK
0RGHO
&6 8&*&

&;$ 7KH 8&*& FODPS PRXQWV


GLUHFWO\RQDVWDQGDUGµFRSSHUJURXQGURG
<RX FDQ DWWDFK XS WR  0RGHO$77 * VH
'LDPRQGҋVKHDY\GXW\ZLGHEDQGFRD[VZLWFK ULHVFRD[VXUJHSURWHFWRUV7KHJURXQGFODPS
WKH&;$LVDKLJKTXDOLW\SRVLWLRQFRD[ LV PDGH IURP VROLG FRSSHU DQG KDV VWDLQOHVV
'DLZD KDV WZR KHDY\GXW\ FRD[LDO VZLWFKHV VZLWFK ZLWK 62 FRQQHFWLRQV /LNH PRVW VWHHO PRXQWLQJ KDUGZDUH ZLWK  EROWV ZDVK
%RWKDUHXVDEOHWR0+]DQGWKHXQXVHG 'LDPRQGSURGXFWVWKLVVZLWFKLVYHU\ZHOOEXLOW HUVDQGQXWV,WLQFOXGHVDQDGMXVWDEOHFRSSHU
SRVLWLRQVDUHJURXQGHG6ZLWFKHVDUHDYDLODEOH DQG GXUDEOH 7ZR VFUHZV RQ WKH EDFN DOORZ JURXQGZLUHFODPSIRU\RXUVWDWLRQVLQJOHSRLQW
DWVOLJKWO\KLJKHUSULFHVZLWKW\SH1FRQQHFWRUV \RXWRPRXQWWKHVZLWFKWRDÁDWVXUIDFH+52 JURXQG ZLUH RI XS WR  JDXJH LQ VL]H +52
+523ULFH 'LVFRXQW3ULFH 3ULFH

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


/,*+71,1*3527(&7,21 %$/816
/LJKWQLQJ3URWHFWLRQ %DOXQV

&RD[LDO,PSXOVH6XSSUHVVRUV
+HUPHWLFDOO\VHDOHG YROWDJH VHQVLWLYH JDV :DWWV
WXEHV DQG RWKHU FRPSRQHQWV WR0+] :$86HULHV
DVVXUH WKDW VXUJH YROWDJHV
DQG FXUUHQWV ZLOO QRW UHDFK
%DOXQV
+523ULFHV
\RXUHTXLSPHQW
5%$ 5HPRWH%DOXQ 

:$8 LV D WUDQVIRUP
)ODQJH0RXQWV 5%$ 5HPRWH%DOXQ 
HU VW\OH EDOXQ XVLQJ
+523ULFH 58 5HPRWH8181 
D VROLG IHUULWH FRUH
 WKDW RSHUDWHV DW D ORZ

96:5 IURP  WR 
 )UHTXHQF\ 0D[LPXP
0RGHO 5DQJH0+] 3RZHU:DWWV 0+]DQGKDQGOHVSRZ
,68;&2 +)² N: 7KH5DGLR:DY]EDOXQVDUHGHVLJQHGWRKDQ HUVXSWR.:3(3 DW
  9+)²: GOHIXOOOHJDOSRZHUZLWKDORZ6:5 6:5VRIOHVVWKDQ 
  8+)²: +DQG EXLOW LQ UXJJHG
,61;&+)² N: ZHDWKHUL]HG SDFNDJLQJ XVLQJ 86 VWDLQOHVV
  9+)²: VWHHOKDUGZDUHDQGEXLOWLQOLJKWQLQJDUUHVWRU
  8+)²:
,61;& 9+)²: 7KH  PDWFKHV    RKPV XQEDODQFHG
Z1FRQQ 8+)²: $LU %D  FRD[ WR    EDODQFHG GLSROHV 7KH 
0+] *+]² : )HUULWH %I  PDWFKHV    RKP XQEDODQFHG FRD[ WR
 ,VRODWLRQ %L     RKP IROGHG GLSROHV 7KHVH DOVR
9ROWDJH$LU %YD  FRPHLQ%HDPDQG/DGGHU/LQHYHUVLRQV
9ROWDJH)HUULWH %YI  2XU,1/,1(EDOXQVLQFOXGHOLQHLVRODWLRQDORQJ
&XUUHQW$LU %FD 
%XONKHDG0RXQWV &XUUHQW)HUULWH %FI 
WKHFRD[WUDQVPLVVLRQV\VWHPDQGJUHDWWRXVH
RQ4XDGDQG<DJLDQWHQQDV
&XUUHQW,VRODWLRQ %FL 
+523ULFH
%DOXQ,VRODWLRQ7; %W[  2XU&855(17W\SHEDOXQXVHVIHUULWHVOHHYH
7\SH1+523ULFH

WR FKRNH 5) FXUUHQW RQ WKH FDEOH VKLHOG SUH
 )UHTXHQF\ 0D[LPXP YHQWLQJKDUPRQLFUDGLDWLRQ
0RGHO 5DQJH0+] 3RZHU:DWWV ,QVXODWRUV 8QDGLOODҋV :$8  EDOXQV KDQGOH 

:DWWV DQG PDWFK  RKPV FRD[ WR 
,6%/8&20( +)² N:
RKPVEDODQFHG,WKDVWRLPSHGDQFHUDWLR
  9+)²:
DQGFRYHUVWR0+]%HDPYHUVLRQVDUH
  8+)²:
DYDLODEOHZLWKSLJWDLOVWRFRQQHFWWRGULYHQHOH
,6%+1&2  +)² N:
PHQWV
Z1FRQQHFWRU  9+)²:
  8+)²: +523ULFHV
 :$8 
5RWDWRU&RQWURO3URWHFWRU (QG6XODWRU  :$8 
0RGHO,65&7 $ VKDWWHUSURRI DQG GXUDEOH  :$8%HDP 
3URYLGHVSURWHFWLRQIRUURWDWRUFRQWUROOHUVPR DOWHUQDWLYH WR WKH FRPPRQ FH  :$8%HDP 
WRUVFRQWUROER[DQGRWKHUQHDUE\HTXLSPHQW UDPLF LQVXODWRU  OLJKW ZHLJKW ZLWK D  :$8/DGGHU/LQH 
+523ULFH&DOO ORQJOHDNDJHSDWKDSSUR[µOHQJWK+52  :$8,1/,1( GXDO62  
3RZHU/LQH 3ULFH SDLU 
([WHQVLRQ3URWHFWRU
7ZRRXWOHWH[WHQVLRQFRUGVZLWKPDVWHURQRII
VZLWFKDQGFLUFXLWEUHDNHU
0RGHO /HQJWK +523ULFH
,63/'2$ 
 9#$ &DOO :'8+)
,63/'2$ 
 9#$ &DOO :'8 0D[L%DOXQV KDYH H[
WUHPHO\ KLJK SRZHU FDSDELOLW\
*URXQGLQJ3DQHO EHFDXVH WKH\ FRQWDLQ QR IHUULWH
0RGHO&863*3 FRUHV WR VDWXUDWH (YHQ DW KLJK
$WKLFNFRSSHUSODWHPRXQWHGRQDSDLQWHG 6:5 OHYHOV WKH :'8 EDOXQV
SO\ZRRGEDFNLQJ0RXQWLQJSURWHFWRUVDQG ZRQҋW JHQHUDWH KDUPRQLF UDGLD
D VLQJOH JURXQG SRLQW HVWDEOLVKHG IRU VWDWLRQ WLRQ7KH LQWHUQDO IHHG OLQH SDVVHV
HTXLSPHQW&RPHVZLWKFRQFUHWHDQFKRUVDOO 'HOWD& WKURXJKIHUULWHEHDGVZKLFKSUHYHQW
PRXQWLQJVFUHZV
RIFRSSHUJURXQGLQJ 'LSROHNLWZLWKFHQWHULQVXODWRUZLWK6(3VWDWLF 5)FXUUHQWIURPÁRZLQJRQWKHFRD[
VWUDSEUDVVVDQGZLFKSODWHVDQGMRLQWFRP VXSSUHVVRUDQGHQG,QVXODWRUVQRZLUH VKLHOG$OVRDYDLODEOHIRU9+)+52
SRXQG[+523ULFH&$// +52'LVFRXQW3ULFH 3ULFH

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


$17(11$6
$OO+\*DLQPXOWLEDQGYHUWLFDODQWHQQDVDUHHQWLUHO\VHOIVXSSRUWLQJ
1RJX\LQJUHTXLUHG7KHLUH[WUHPHO\ORZDQJOHRIUDGLDWLRQDQGRPQL
+)P9HUWLFDOV GLUHFWLRQDOSDWWHUQVRIIHUUHPDUNDEOH';SHUIRUPDQFH$OOKDQGOH
:3(366%DQGKDYHORZ6:5$OOH[FHSWWKH$996KDYH
DXWRPDWLFEDQGVZLWFKLQJDQGDOOH[FHSWWKH$9+7LQFOXGHD
LQFKKHDY\GXW\PDVWVXSSRUWEUDFNHW5DGLDWRUVDUHKHDY\GXW\
VORWWHGWDSHUHGVZDJHGDLUFUDIWDOXPLQXPWXELQJZLWKIXOOFLUFXPIHU
HQFHFRPSUHVVLRQFODPSV$OOLQFOXGHDOOVWDLQOHVVVWHHOKDUGZDUH5H
$9 FHVVHG62SUHYHQWVPRLVWXUHGDPDJH7ZR\HDUOLPLWHGZDUUDQW\
8VHV TXDUWHU ZDYH
VWXEV RQ   
DQG  PHWHUV DQG
HIÀFLHQW HQG ORDG +) +)9HUWLFDOV
LQJ FRLO DQG FDSDF
$9+7 ';$
LW\ KDWV RQ  
 DQG  PHWHUV $9+7  P  IW WDOO  OEV 1R JURXQG UDGLDOV
1R UDGLDOV 1R 7KH IDPRXV +\*DLQ +\7RZHU UHTXLUHG 2IIFHQWHUIHG :LQGRP KDV 
WUDSV 1R JURXQG  IW WDOO  OEV FRYHUV  JUHDWHU EDQGZLGWK WKDQ FRPSHWLWLYH YHUWLFDOV
1R WXQLQJ +DQGOHV PZLWKPDQGPRSWLRQDO +HDY\GXW\WLOWDEOHEDVH(DFKEDQGLQGHSHQ
 :DWWV 6OHHN $XWRPDWLF EDQG VHOHFWLRQ XVHV GHQWO\WXQDEOH
ORZ SURÀOH 6PDOO XQLTXHVWXEGHFRXSOLQJN+] $996
DUHD UHTXLUHG IRU  P EDQGZLGWK ZLWK  6:5 &RYHUV  WKURXJK  P FRQWLQXRXVO\ (DV
PRXQWLQJ$XWRPDW /&4 RSWLRQDO EDVH ORDGLQJ LO\ FKDQJH EDQGV E\ PDQXDOO\ PRYLQJ EDQG
LF EDQGVZLWFKLQJ FRLOIRUPDQG0.RSWLRQDO FKDQJH ZLUH DW EDVH ORDGLQJ FRLO +DQGOHV
VLQJOH FRD[ FDEOH  P NLW 6SHFLDO WLOWRYHU KLQJHG  : 3(3  IW WDSHUHG 7 DLUFUDIW
IHHG HDFK EDQG LV EDVH IRU HDV\ UDLVLQJ DQG ORZHU DOXPLQXP WXELQJ VWUHQJWK  OEV 6WDLQOHVV
LQGLYLGXDOO\WXQDEOH LQJ VWHHOKDUGZDUHPSKZLQGVXUYLYDO
ZLGH 96:5 EDQG
ZLGWK
'; $9$94
 P  IW WDOO  OEV$XWRPDWLF EDQG
$9 2SWLRQDO VZLWFKLQJ VHOI VXSSRUWLQJ : +\4Œ
&RYHUVDOOEDQGVWKURXJK0HWHUV PZLWKPRSWLRQDO WUDSVJLYHIXOOõZDYHSHUIRUPDQFHZLWKEURDG
IWWDOOOEV$OOEDQGVDUHHDVLO\ EDQGLQJWRSKDW6:5OHVVWKDQ*URXQG
WXQHG ZLWK H[FOXVLYH DGMXVWDEOH RUURRIPRXQWUHTXLUHVUDGLDOV
FDSDFLWRUV    P  WXQHDEOH
IURP JURXQG ZLWKRXW ORZHULQJ $9$94
DQWHQQD 6XSHU KHDY\GXW\ FRQ  P  IW WDOO  OEV  : 3(3$XWR
VWUXFWLRQ 2SWLRQV LQFOXGH .LW EDQG VZLWFKLQJ *URXQG RU URRI PRXQW 5H
 IRU  P DGGRQ *5. TXLUHV UDGLDOV +HDY\ GXW\ EUDFNHW ZLWK UH
 JURXQG UDGLDO V\VWHP DQG FHVVHG 62 PRXQWV RQ µ GLDP
55.URRIUDGLDOV\VWHP HWHU PDVW 2SWLRQDO 0.  P DGGRQ NLW
'; DQG$9504URRIPRXQWNLW$9$94
IWEDQGYHUVLRQDOVRDYDLODEOH
0HWHUV
$9

$9
PIWWDOOOEVORZSURÀOHVHOI
VXSSRUWLQJYHUWLFDODVVHPEOHVLQOHVVWKDQ
DQKRXU(QWLUHOHQJWKUDGLDWHVIRUH[FHS
WLRQDOO\ORZDQJOHUDGLDWLRQ$ZLGHUDQJH
DXWRPDWLF RU PDQXDO DQWHQQD WXQHU DW
\RXU ULJ HDVLO\ PDWFKHV WKLV DQWHQQD IRU
DOO EDQGV ,QFOXGHV $7% EDVH PRXQW
2SWLPL]HGEDOXQGHVLJQDOORZVGLUHFWFRD[
IHHG
$9
1RJURXQGRUUDGLDOVQHHGHGPIWWDOO
OEV:NH\GRZQIRUWZRPLQXWHVõ +\JDLQVHOOVDODUJHDVVRUWPHQWRI
ZDYHVWXEVRQDQGP:LGHORZ PXOWLEDQGEHDPVZLUHDQWHQQDV
6:5EDQGZLGWK$XWREDQGVZLWFKLQJ/RZ DQGRWKHUYHUWLFDOV$VNDERXWEDOXQV
VTIWZLQGVXUIDFHPRXQWVRQGHFNVURRIV DOXPLQXPWXELQJDQGSDUWV
SDWLRVPSKZLQGVXUYLYDO ';$$996$9$94$9$94

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


$17(11$6
0)-
(QG)HG 0)-
+RUL]RQWDO:LUH 0)-
$QWHQQDV
(QGIHG UDGLDWRUV KDYH WKH
XQLTXH TXDOLW\ RI UHVRQDWLQJ +H[%HDP
RQWKHZDYHIXQGDPHQWDOIUH YHUWLFDO ZLWK DQ LQYHUWHG/ $QWHQQDV
TXHQF\SOXVRGGHYHQKDUPRQ &RPHVZLWKDUXJJHGLQVXODW
LFVDERYH%URDGEDQGPDWFKLQJ HGZLUHUDGLDWRUWKDWSUHYHQWV
WUDQVIRUPHUDWIHHGSRLQWOHWVWKH GHWXQLQJZKHQLQFRQWDFWZLWK
HQWLUH +) VSHFWUXP EH \RXUV OLPEVEUDQFKHV ´1RVQDJµ  :DWW +H[%HDP GHOLYHUV VROLG 0)-6SHFLÀFDWLRQV
6:5 LV VR ORZ \RX PD\ QHYHU HQG LQVXODWRU VOLGHV RYHU JDLQ DQG GLUHFWLYLW\ RQ    ‡ *DLQ  G%L LQ IUHH VSDFH
QHHGDWXQHU EUDQFKHVDQGWKURXJKIROLDJH DQG0HWHUVLQDORZSURÀOH PRUHRYHUJURXQG 
'DUNMDFNHWHGZLUHLVYLUWXDOO\ SDFNDJH WKDW ZLOO KDYH \RXU SRFNHW ‡ )URQWWR%DFN5DWLR
,QVWDOODWLRQLVIDVWIRUKRPHURDG LQYLVLEOH'RQҋWOHWDQWHQQDUH ERRNDQG\RXUQHLJKERUVVPLOLQJ G%
HPHUJHQFLHV ² MXVW RQH KLJK VWULFWLRQVNHHS\RXRIIWKHDLU ‡ 7\SLFDOWXUQLQJUDGLXVIHHW
FHQWHURUHQGVXSSRUW7RVV\RXU 3RZHU UDWLQJV DUH LQ :DWWV 7KH 0)- XVHV DQ XSGDWHG ‡ 0D[LPXPPDVWVL]Hµ
()+: RYHU D KLJK OLPE IRU DQ 3(3 IRU 66%  &: PRGHV *7;4 HOHPHQW FRQÀJXUDWLRQ IRU 2'
LQYHUWHG9UDLVHWKHIDUHQGKLJK ZLWKRUOHVVWUDQVPLWWLPH H[FHOOHQW JDLQ LPSURYHG EDQGZLGWK ‡ :HLJKWSRXQGV
IRUDSRZHUIXOVORSHURUHYHQJR ,&$6  VXSHULRU IURQWWREDFN UDWLR DQG ORZ ‡ :LQGORDGLQJVXUIDFH
6:5  PDNHV VQDJJLQJ UDUH '; VTXDUHIHHW
0)-/3  : 453 0HWHUV +523ULFH0)-
HDV\7KDWCVMXVWWKHEHJLQQLQJ0)-
0)-/3  : 453 0HWHUV
WDNHV WKH +H[%HDPCV XQLTXH EDO
0)-03  : 5HVWULFWHGVSDFH 0HWHUV 0)-6SHFLÀFDWLRQV
DQFHGWHQVLRQ IUDPHZRUN WR D QHZ
0)-03  : 5HVWULFWHGVSDFH 0HWHUV ‡ %DQGV     
OHYHO ZLWK UXJJHG PRXQWLQJ KDUG
0)-+3  : +LJKSRZHU 0HWHUV 0HWHUV
ZDUH H[FHSWLRQDOO\ GXUDEOH VSUHDG
0)-+3  : +LJKSRZHU 0HWHUV ‡  DQG  PHWHUV DUH HDFK
HUV DQG VOLGLQJ DQWHQQDZLUH JXLGHV
DOOGHVLJQHGWRHQVXUH\HDUVRIUHOL RQHHOHPHQWUDGLDWRUV
DEOHVHUYLFHLQWRXJKZHDWKHUFRQGL ‡ :
WLRQV*DLQDQGGLUHFWLYLW\PDNHVWKH ‡ IRRWWXUQLQJUDGLXV
0)- GLIIHUHQFH ZKHQ ';LQJ RU PDLQWDLQ ‡ :HLJKWOEV
LQJVFKHGXOHVDQGWKH+H[%HDPGH +523ULFH0)-
:DYH OLYHUV
%DQG+)

&REZHE
$QWHQQD 0$%
(OHPHQWVRQ
5HVWULFWHGVSDFHVSRLOLQJ\RXURSHUDWLQJIXQ"0)-&REZHESXWV\RXU
FDOOEDFNRQWKHPDS7KLVVL[EDQG 0HWHUV IXOO 
KDOIZDYH&REZHE$QWHQQDLVSHUIHFWIRUUHVWULFWHGVSDFHRUSRUWDEOH 0HWHUV
RSHUDWLRQ 6N\JUD\ ÀEHUJODVV VSUHDGHUV DQG QHDUO\ LQYLVLEOH ZLUH
HOHPHQWV ÁDW[[IHHWVTXDUHSRXQGV EOHQGLQZLWK\RXU &XVKFUDIWҋV ODWHVW 0$% JLYHV
VXUURXQGLQJVZKLOHVWDQGLQJWRXJKDJDLQVWQDVW\ZHDWKHU \RX HOHPHQWV RQ VL[ EDQGV
<RX JHW VROLG VLJQDOERRVWLQJ
2XWVWDQGLQJSHUIRUPDQFH+RUL]RQWDOO\SRODUL]HGIRUOHVVORFDOQRLVH
GLUHFWLYLW\ LQ D EDQWDPVL]H DQG
SLFNXSSOXVVROLGJDLQRYHUYHUWLFDOVZLOODOORZ\RXWRZRUN';HDV
ZHLJKW
LO\²HYHQRQ4532PQLGLUHFWLRQDO1RUDGLDOVQHHGHG:RUNVJUHDW
DWORZKHLJKWV/RZ6:5LVGXHWR0)-ҋVH[FOXVLYH6SLGHU0DWFKŒ
0RXQW RQ \RXU URRI RU PDVW XV
EURDGEDQGQHWZRUN8VHOLJKWZHLJKW79KDUGZDUHWRPRXQWRQ\RXU
LQJ VWDQGDUG 79 KDUGZDUH ,WҋV
FKLPQH\EDOFRQ\PDVW/RZLQFRVWEXWELJRQSHUIRUPDQFH
SHUIHFWIRUH[SORULQJH[FLWLQJ';
+523ULFH0)- ZLWKRXWWKHKLJKFRVWDQGKHDY\
+523ULFH0)-+OHJDOOLPLWPRGHO OLIWLQJRILQVWDOOLQJDODUJHWRZHUDQGIXOOVL]HGDUUD\,WVIRRWLQFKERRP
+523ULFH0)-+.DGGVPHWHUV KDVDWXUQLQJUDGLXVOHVVWKDQIHHW&RQWHVWWRXJK²KDQGOHV:DWWV

0)- 7KHXQLTXH0$%LVDWZRHOHPHQW<DJLRQPH
0HWHU&REZHE WHUV,WGHOLYHUVVROLGSRZHUPXOWLSO\LQJJDLQRYHUDGLSROHRQDOOEDQGV<RX
JHW DXWRPDWLF EDQG VZLWFKLQJ DQG D VXSHU HDV\ LQVWDOODWLRQ LQ D FRPSDFW
6XSHU+HDY\'XW\$QWHQQD SRXQGSDFNDJH:KHQZRUNLQJ';ZKDWUHDOO\PDWWHUVDUHWKHLQWHUIHU
7KHQHZVXSHUKHDY\GXW\PHWHU&REZHE$QWHQQD0)- LQJVLJQDOVDQGQRLVH\RXGRQҋWKHDU7KDWҋVZKHUHWKH0$%ҋVLPSUHVVLYH
LVEXLOWWRVXUYLYHKDUVKQRUWKHUQZLQWHUVKHDY\VQRZLFHDQGVWURQJ VLGHUHMHFWLRQDQGIURQWWREDFNUDWLRUHDOO\VKLQHV+523ULFH
ZLQGV,WKDVVXSHUVWURQJODUJHGLDPHWHUÀEHUJODVVDQGKHDY\GXW\
JDXJHVWUDQGHGKDUGFRSSHUZLUHEDQGV 0$%/LNH0$%EXWÀYHEDQGVPHWHUVDQG
0HWHUV:DWWVIHHWOEV+523ULFH PHWHUVLVDVLQJOHHOHPHQWWUDSSHGGLSROH+523ULFH

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


+)9+)9(57,&$/%$6($17(11$6
(DJOH'; 8OWUD&RPSDFW9HUWLFDO
7KH (DJOH '; ZHLJKV MXVW
 SRXQGV DQG FDQ EH LQ
VWDOOHG DOPRVW DQ\ZKHUH ,W
LVHVVHQWLDOO\DVHWRIYHUWLFDO
GLSROHVZLWKQRWUDSVFRLOVRU +98
WUDQVIRUPHUV %DQGVRQ+)PFP
7LWDQ'; +523ULFH
7KH 7LWDQ LV D FHQWHU IHG *$3 ,WFRYHUVDQG
YHUWLFDO WKDW SURYLGHV D KRVW RI PHWHUVZLWKWKHHQWLUHEDQGDW
EHQHÀWV LQ D UXJJHG \HW PDQ D96:5RIRUOHVV)RU $W RQO\ KDOI WKH
DJHDEOH IRUP 7KH 7LWDQ RIIHUV PWKLVLVN+]1RDQWHQQD KHLJKWDQGZHLJKW
EURDG FRQWLQXRXV IUHTXHQF\ WXQHULVUHTXLUHG RI WUDGLWLRQDO +)
FRYHUDJH LQ D QR WXQH HDV\ WR YHUWLFDO DQWHQ
DVVHPEOH IRUPDW 'H QDVPRGHO+98
VLJQHG WR ZRUN LQ D OLP  LQFOXGHV P
LWHGVSDFHRUDVWKHSHU DQG FP ,W LV
IHFW FRPSOLPHQW HDVLO\FRQÀJXUHG
WR DQ DQWHQQD DQG LQVWDOOHG LQ
IDUP 12 5$', FRQILQHG RU UH
$/6UHTXLUHG VWULFWHG VSDFHV
9R\DJHU'; VXFK DV DSDUW
7RWDOFRQWLQXRXVFRYHUDJHXQGHU PHQW EDOFRQLHV
RQPPPPPP 7KH9R\DJHU';LVPDQXIDF
RU IRU WHPSRUDU\
PDQGN+]RQP WXUHGVSHFLÀFDOO\WRSURYLGH
XVH (DFK +)
HIÀFLHQWORZEDQGRSHUDWLRQ
EDQGDQGPKDVDQLQGHSHQGHQWO\WXQHGUDGLDWRU
IURP WKH W\SLFDO EDFN\DUG
DQG UDGLDO V\VWHP ZKLOH WKH PDLQ DQWHQQD PDVW LV
&KDOOHQJHU ZLWKRXW D KXJH LQYHVWPHQW
WXQHGIRUFRQVWDQWRSHUDWLRQRQPFP
LQWLPHPRQH\RUVSDFH
7KH&KDOOHQJHULVFDSDEOHRIRS ‡ +)DQGPZDYH
HUDWLQJRQHLJKWVHSDUDWHEDQGV ,WLVQRWDQRWKHUDGGDNLW ‡ PZDYHG%LJDLQ
IURP0+]WR0+]8VHLW DQWHQQD IRU P *$3 ‡ FPWZRZDYHVLQSKDVHG%LJDLQ
RQDQG WHFKQRORJ\RSHQVXSWKHORZ ‡ ,PSHGDQFH2KP
PHWHUEDQGVZLWKRYHUN+] EDQGV(PSKDVLVZDVJLYHQ ‡ 0D[SRZHU+):66%PFP:)0
EDQGZLGWKRQP WR  P DQG  P ZKHQ ‡ +HLJKWIWLQFKHV
GHVLJQLQJWKH9R\DJHU ‡ :HLJKWOEVR]V
7KH DQWHQQD LV GHVLJQHG WR EH
PRXQWHG GLUHFWO\ LQ WKH JURXQG 7KHDQWHQQDHPSOR\VDFD
RU HOHYDWHG $ JURXQG PRXQW LV SDFLW\KDWZLWKFLUFXODUULQJWR
SURYLGHG 7KH &KDOOHQJHU PD\ UHGXFHWKHSK\VLFDOKHLJKWWR
EH URRI PRXQWHG 7KH DQWHQQD IHHWZKLOHPDLQWDLQLQJDQ
UHTXLUHVDFRXQWHUSRLVHRIWKUHH HOHFWULFDOKHLJKWRIIHHW
IRRWLQVXODWHGZLUHV 3DUDOOHOWXQHUURGVDUHXVHGLQLWVGHVLJQ
1RWXQLQJRUPDWFKLQJDUHUHTXLUHGWRSXW
WKH9R\DJHURQWKHDLU
*$3$QWHQQDV

2XWSRVWŒ
7ULSRG*URXQG&RXSOHU
*URXQG0RXQW6\VWHP
+523ULFH
‡ 0DWFKHVWKHEDVHLPSHGDQFHRIPRVWPRELOH+)
DQWHQQDV
‡ )ROGRYHU[62WRSPRXQW
‡ &RQVWUXFWHGRIDLUFUDIW7DOXPLQXPVWDLQ
OHVVVWHHOKDUGZDUHDQGZLQJQXWV
‡ 1RGLJJLQJ²QRKROHVLQJURXQG²QRFRQFUHWH
‡ )ROGRXW OHJV DFW DV D ODUJH FDSDFLWRU SURYLGLQJ
SURSHU FRXSOLQJ WR WKH JURXQG DQG SURSHU EDVH
LPSHGDQFH WR WKH DQWHQQD )ROGXS GHVLJQ IRU
$OO*$3DQWHQQDVVKLSSHG3/86IUHLJKW PLQXWHLQVWDOODWLRQ

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


+)/21*:,5($17(11$6
+)2&)$QWHQQDV
+52 +52
3URGXFW 0RGHO 3ULFH 3URGXFW 0RGHO 3ULFH

*59/LQH 'LSROHVZLWK%DOXQ +)'LSROH$QWHQQDV


ZKHDY\GXW\ODGGHUOLQH P '3 
*59-U    P '3  2II&HQWHU)HG
*59/LWH(    P '3 
*59(   
2&) 
P '3 
*590$;(  
:RUOGZLGH';
'; 2&) :LQGRP PXOWLEDQG
'; ';  QRWXQHUUHTXLUHG
'; ';06+ 
%DQG PHWHUV
IHHW  ORQJ
 ';2&) : +523ULFH
'RXEOH%D]RRND   ';2&)+3 N: +523ULFH

P '%=  
%DQGPHWHUV
P '%=  
IHHW  ORQJ
P '%=  
 ';2&) : +523ULFH
P '%=  
  ';2&)+3 N: +523ULFH
P '%=   
P '%=   %DQGPHWHUV
P '%=   IHHW  ORQJ
P '%=    ';2&) : +523ULFH
P '%=     ';2&)+3 N: +523ULFH

+H[%HDPV
3RUWDEOH+) /LPLWHG6SDFH$QWHQQDV
&RYHULQJ+) 0
+523ULFH²&DOO

6HQWLQHO6HULHV)HDWXUHV
‡ 6LQJOH FRD[ IHHG H[FHSW IRU $OORI$OSKD'HOWDҋVOLPLWHGVSDFHDQWHQQDVXVHVWDLQOHVVVWHHO
%DUUHWW DQG %URDGEDQG RS KDUGZDUHZKHUHUHTXLUHGDUHIXOO\DVVHPEOHGDQGDUHPDQXIDF
WLRQV  WXUHUHGWRZLWKVWDQGVHYHUHZHDWKHU62FRQQHFWRUV7KH
‡ /RZ6:5 ';$DQG';%VORSHUVPXVWEHDWWDFKHGWRDWRZHUZLWKDQ+)
‡ 1RWXQLQJMXVWSOXJDQGSOD\ VL]HEHDPRQWRSWREHD´FDSDFLW\KDWµIRUSURSHUWXQLQJ3RZHU
‡ ,PSURYHGEURDGEDQGUHVSRQVH 5DWLQJ:DWWV&:3(3
(0&200,, RYHURULJLQDOKH[EHDPGHVLJQ
+523ULFH 0RGHO ';% LV D VLQJOH ZLUH KLJK SHUIRUPDQFH TXDUWHUZDYH
‡ 3HUIRUPVZHOODWORZHUKHLJKWV VORSHUDQWHQQDIRU PHWHUV)RUOLPLWHGVSDFH
7KLVDQWHQQDIRUEDFN ‡ +DQGOHVIXOOOHJDOOLPLWRISRZHU WKHDQWHQQDUHTXLUHVRQO\IHHWIRULQVWDOODWLRQ8VHZLWKDZLGH
XSHPHUJHQF\+)V\VWHPRUSHUPDQHQW ‡ 6PDOOSK\VLFDOIRRWSULQW UDQJHDQWHQQDWXQHU3UHDVVHPEOHGDQGSUHWXQHG+DVVWDLQ
LQVWDOODWLRQ KDV DQ LQWHJUDO EURDGEDQG ‡ /LJKW HQRXJK IRU D SXVK XS OHVVVWHHOKDUGZDUHJDXJHLQVXODWHGVROLGFRSSHUZLUHDQG
LPSHGDQFH PDWFKLQJ QHWZRUN WUDQV PDVW WKH$OSKD'HOWD,625(65)FKRNHFRLOVRKPFRD[IHHG
IRUPHU DOORZLQJEURDGEDQGDQWHQQD ‡ 6\PPHWULFDO VKDSH ZLWKVWDQGV +523ULFH
WXQLQJ,WLVWKHSHUIHFWEDFNXSDQWHQQD ZLQGEHWWHU
IRU DSDUWPHQWV FRQGRPLQLXPV KRP 0RGHO';$4XDUWHUZDYHWZLQVORSHUIRUPHWHUV2QH
HRZQHUVDVVRFLDWLRQVGHHGUHVWULFWLRQV 6HQWLQHO0RGHOV OHJLV
WKHRWKHU
,QVWDOOVDVDQLQYHUWHG9+523ULFH
DQG &&5V $5(6 5$&(6 0$56 6HQWLQHO%DUUHWW6HULHV+H[%HDP
(0&200 19,6 ÀUVW UHVSRQGHUV DQG PRUP
HVSHFLDOO\IRUHPHUJHQF\SUHSDUHGQHVV 6HQWLQHO+H[%HDPEDQGV
DQGP
7RWDOO\ ZDWHUSURRI WKH DQWHQQD LV ҋ
ORQJDQGFRYHUVPWRP$QH[WHU 6HQWLQHO+H[%HDPP P 0RGHO';&&
QDOWXQHULVUHTXLUHG,WZHLJKVSRXQG 'XDOEDQG +)$QWHQQD
DQGKDVDQ625)FRQQHFWLRQ 6HQWLQHO+H[%HDPEDQG
7KHDQWHQQDZLOOSHUIRUPDVDVORSHURU &RYHUVDQGP
LQYHUWHG ´9µ FRQÀJXUDWLRQ )RU D 19,6 6HQWLQHO+H[%HDPP 0RGHO';&&$QRWUDSPHWHUGLSROH
ORQJ
FRQÀJXUDWLRQ P²P WKHDQWHQQD 6LQJOHEDQGDQWHQQD +523ULFH
PXVW EH LQVWDOOHG KRUL]RQWDOO\ ZLWK WKH
6HQWLQHO+H[%HDPP 0RGHO ';''$ QR WUDS  PHWHU GLSROH 
 ORQJ  +52
JURXQG DQG HOHYDWHG EHWZHHQ ҋ DQG
6LQJOHEDQGDQWHQQD 3ULFH
ҋKLJK,WGRHVQRWUHTXLUHDQ\JURXQG
SODQHEXWZLOOSHUIRUPEHWWHUZLWKRQH$ 6HQWLQHO+H[%HDPP 0RGHO';(($QRWUDSPHWHUGLSROH2QO\
ORQJ
JURXQGWHUPLQDOLVDYDLODEOH 6LQJOHEDQGDQWHQQD +523ULFH

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


$17(11$6
%DVH$QWHQQDV 2Q*ODVV'XDO%DQG
+)$QWHQQD:KLSV ²P 0)-
'XDO EDQG JODVV PRXQW    FP DQWHQQD
0)-;;7 0)- JLYHVG%JDLQRQPHWHUVDQGG%JDLQ
+) DQWHQQD ZKLSV KDQGOH  7HQ EDQG KDOIZDYH RQFP/RZ6:5RQERWKEDQGV
:DWWV 3(3 :KLSV DUH DERXW  YHUWLFDO DQWHQQD
IHHWIXOO\H[WHQGHGDQGFROODSVHWR &RYHUV  EDQGV 0)-
DERXWIHHWIRUHDV\VWRUDJH6LP       PHWHUJODVVPRXQWDQWHQQDKDQGOHV:DWWV
SO\VFUHZVLQWRDQ\[IHPDOH      ZLWKG%JDLQORZ6:5RYHUHQWLUHPHWHU
PRXQWIRUTXLFNEDQGFKDQJLQJ DQG  PHWHUV 1R EDQG
JURXQG UDGLDOV RU
(DFKZKLSLVUXJJHGO\FRQVWUXFWHG JURXQG QHHGHG
+HDY\ GXW\ IRRW µ GLDPHWHU EHFDXVH RI WKH 9+)8+)0RELOH
ÀEHUJODVV URGV QHDUO\ LQGHVWUXF HIIHFWLYH FRXQWHU
WLEOHHLJKWKLQFKGLDPHWHU3+ SRLVH WKDW LV 
VWDLQOHVVVWHHOZKLSVDQGFKURPH
0)-%
IHHW DFURVV 0RXQW 0RELOHPDJQHWLFPRXQWGXDOEDQGDQ
SODWHG EUDVV ÀWWLQJV ZLOO JLYH \RX IURP JURXQG OHYHO WR URRI WRS 7KH IHHGOLQH WHQQDJLYHV\RXDTXDUWHUZDYHVWDLQ
\HDUVRIVHUYLFH LV LVRODWHG IURP WKH DQWHQQD XVLQJ 0)-ҋV OHVV VWHHO ZKLS IRU  PHWHUV DQG 
6OHHN ORZSURÀOH FRQVWUXFWLRQ KDV $LU&RUH70 EDOXQ$FKLHYHV IXOOVL]HG SHUIRU FP FRD[ DQG FRQQHFWRU /RZ 6:5
ORZZLQGORDGLQJDQGWKHVHPLULJLG PDQFH ZLWK IXOOVL]H UDGLDWRUV IRU  PH :DWWV
ÀEHUJODVV HOLPLQDWHV WKH QHHG IRU WHUV DQG KLJK HIÀFLHQF\ HQGORDGLQJ IRU 
VSULQJV RU JX\V %ODFN DQWLVWDWLF DQGPHWHUV8366KLSSDEOH
MDFNHWSURWHFWVWKHORDGLQJFRLODQG
0)-
EOHQGV ZLWK DQ\ YHKLFOH 6WDLQOHVV
²P9HUWLFDO 0RELOH 0DJQHWLF 0RXQW VXSHU JDLQ GXDO EDQG
0)- DQWHQQD*HWDZKRSSLQJG%JDLQRQPH
VWHHOZKLSVDUHDGMXVWDEOHIRUORZ
EDQGYHUWLFDOFRYHUVWKURXJKPHWHUV WHUVDQGG%JDLQRQFP
HVW6:53XVKWKHZKLSVGRZQWR
SDUN LQ WKH JDUDJH RU IXOO\ H[WHQG IHHWWDOOZLWKWLQ\LQFKIRRWSULQW0RXQWV
IRU PD[LPXP HIÀFLHQF\ GXULQJ DQ\ZKHUHKDQGOHV:DWWV3(3 0)-
'XDOEDQGµ5XII5LGHU70K\SHUJDLQPRELOH
PRELOH RSHUDWLRQ ,QFOXGHV DOOHQ
ZUHQFK DQG FRPSOHWH WXQLQJ DQG ²P0LQLGLSROH DQWHQQD  G% JDLQ RQ  FP  G% JDLQ RQ
0)- P5HTXLUHVWULPDJQHWPRXQWQRWLQFOXGHG
PDWFKLQJLQVWUXFWLRQV
:DYHEDQGURWDWDEOHPLQLGLSROH-XVW
0)-70 0)-70 IHHWZLGHFDQEHWXUQHGE\DVPDOO79
0)-70 0)-70 W\SH URWDWRU &RYHUV  WKURXJK  PHWHUV
PP0RELOH
0)-70 0)-70 KDQGOHV:DWWV
0)-70 0)-70 0)-%
0)-70 0)-70 0RELOH PDJQHWLF PRXQW  ZDYH  PHWHU DQG
/RQJZLUH$QWHQQDV  ZDYH  PHWHU DQWHQQD /RZ 6:5 
7HOHVFRSLF:KLSV :DWWV

+L4/RRS$QWHQQDV

0)-;
0)-ҋV SUHPLXP VWDLQOHVV VWHHO WHOHVFRSLF
ZKLSV DUH WKH SHUIHFW FKRLFH IRU EXLOGLQJ FRO
ODSVLEOHPXOWLEDQGGLSROHVPRELOHVSRUWDEOH
DQGEDVHDQWHQQDV7KH\DUHKDQG\IRUWUDY 0)-
HOLQJ PLQL ';SHGLWLRQV YDFDWLRQV HWF 8VH
WKHPWRUHSODFH\RXUFXUUHQWDXWRPDWLFVFUHZ 7LQ\ µ GLDP
GULYHU ZKLS IRU D PRUH KLJKO\ HIÀFLHQW À[HG HWHU ORRS DQWHQQD
PRELOHRSHUDWLRQ5LJLGO\FROODUHGDWWKHEDVH RSHUDWHV  0+]
VWURQJHUWKDQSODWHGEUDVVDQGLPSHUYLRXVWR FRQWLQXRXVO\ ² LQFOXGLQJ :$5& EDQGV ,GHDO
²P*59 IRUDSDUWPHQWVVPDOOORWVPRWRUKRPHVDWWLFV
UXVWDQGFRUURVLRQWKH\VWDQGXSWRWKHIRUFHV
RIQDWXUHDQGWKHULJRUVRISRUWDEOHRSHUDWLRQ
0)- HWF+DQGOHVZDWWV0)-ҋVLQFOXGHGUHPRWH
$OOEDQG*59DQWHQQDIHHWORQJ FRQWUROKDV$XWR%DQG6HOHFWLRQŒ$XWRWXQHV
ZKHUHRWKHUVPLJKWIDLO
IRRWODGGHUOLQHHQGLQJLQ62FRQQHFWRU WRGHVLUHGEDQGWKHQEHHSVWROHW\RXNQRZ1R
0RGHO 1XPEHU +HLJKW &ROODSVHG IRUFRD[IHHGOLQH:DWWVP FRQWUROFDEOHQHHGHG)DVWVORZWXQHEXWWRQV
6HFWLRQV )HHW ,QFKHV PHWHUVZLWKWXQHUJURXQG EXLOWLQWZRUDQJHFURVVQHHGOH6:5:DWWPH
WHU$OOZHOGHGFRQVWUXFWLRQODUJHµGLDP
0)-   
²P*59-XQLRU HWHUURXQGUDGLDWRUJLYHV\RXKLJKHVWSRVVLEOH
0)-   
HIÀFLHQF\+HDY\GXW\$%6SODVWLFKRXVLQJKDV
0)-    0)-0 XOWUDYLROHWSURWHFWLRQ
0)-    *59-XQLRU+DOIVL]HIHHW&RYHUV
0)-    PHWHUV 0)-/LNH0)-0HWHUV

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


+7$17(11$6 02%,/($17(11$6
$QWHQQDV
IRU+DQGKHOGV
2Q*ODVVP
LYj`]]d
0RELOH$QWHQQDV
/LWWOH
6LQJOH%DQG:DYH 7DUKHHO,,
/DUVHQ
VIXOOVHOHFWLRQRIRQJODVVDQWHQQDVIRUVLQJOH ²0+]
EDQGDQGGXDOEDQGXVHDUHGHVFULEHGRQSDJH$OO
'XDOEDQG 5'+
VLQJOHEDQGDQWHQQDVDUHSUHFXW$VLQJOHZDYH
5XEEHU'XFN GHVLJQSURYLGHVG%JDLQ
.*8'3/0+523ULFH
5'+
0+]0+]ÁH[LEOH )LQGPRUHRQJODVVDQWHQQDV %DE\
 WDOO +7 DQWHQQD JROG RQSDJH
SODWHG%1&FRQQHFWRU 7DUKHHO
+523ULFH
PFP0RELOHV 0

+523ULFHV
&$//
:LUHOHVV
'XDO%DQG$QWHQQDVIRUPFP
$QWHQQDV :KHQSURSHUO\LQVWDOOHGRQ\RXUYHKLFOHWKH/LWWOH
0RGHO 0D[3ZU *DLQ /JWK &RQQ )LQLVK
7DUKHHO ,, ZLOO SURYLGH FRQWLQXRXV FRYHUDJH IURP
(;5% :  µ 3/ %ODFN
WR0+]ZLWKWKHVXSSOLHGZKLS/LNHDOORI
(;5%102 :  µ 102 %ODFN RXU PRWRUL]HG DQWHQQDV WKLV PRGHO PHHWV WKH
KLJKHVWVWDQGDUGVEXWLQDVPDOOHUVL]H
,WFRPHVZLWKVHQVRUVSUHLQVWDOOHGVRLI\RXGH
FLGHWRDGGRQHRIWKHDXWRFRQWUROOHUV 6'&
:L)LE 'XDO%DQG$QWHQQDIRUPFP 6LPSOH&RQWUROOHU6'&3URJUDPPDEOH&RQ
0RGHO102%ODFN WUROOHU7XUER7XQHUDQG7XQHPDWLF QRZRUODWHU
:LUHOHVV/$1 HYHU\WKLQJLVUHDG\
 )UHT  :HLJKW +52
$QWHQQDV %DQG 0+] *DLQ R] 3ULFH 7KLVDQWHQQDLVIRUWKHSHUVRQZKRZDQWVWRHQMR\
+) PRELOH ZLWK D PRUH FRPSDFW DQWHQQD 'RQҋW
1*&RIIHUVDZLGHVHOHFWLRQ P  G%L  
OHW WKH VPDOO VL]H IRRO \RX 7KH /LWWOH 7DUKHHO ,,
RIGLUHFWLRQDODQGRPQLGLUHF FPFROOLQHDU G%L
PRXQWV KLJKHU RQ WKH YHKLFOH VR \RX KDYH OHVV
WLRQDODQWHQQDVIRU$PDWHXU
7HOHYLVLRQ WKH ,60 EDQG
/$1  :$1 GDWD OLQNV DQG $XVWLQ JURXQG ORVV DQG KLJKHU SHUIRUPDQFH %HFDXVH
RILWVVPDOOHUVL]HWKLVDQWHQQDRIIHUVWKHFRQYH
QLHQFHRIDPRUHFRPPRQW\SHRIPRXQWOLNHWKH
ZLUHOHVVLQWHUQHW 'XDO%DQG0RELOH$QWHQQDV
'LDPRQG.6HULHVWKH&RPHW6HULHVRUVLPL
*35   )UHT *DLQ :HLJKW +52 ODUµVWXGW\SHPRXQW
$79,60EDQG 0RGHO %DQG 0+]  R] 3ULFH
0+] 7KH/LWWOH7DUKHHO,,FRPHVDVDSDFNDJH$OO\RX
& P  8QLW\  
2PQLGLUHFWLRQDOJDLQ QHHG LV D PRXQW DQG D QLFH +) UDGLR ,QFOXGHG
 FP     VWDQGDUGZLWKWKHDQWHQQDLVWKHZKLSIHHWRI
G%L
0HWURSROLWDQ P  8QLW\   SOXJDQGSOD\FRQWUROFDEOHPDQXDOFRQWUROER[
+HLJKW

&RQQHFWRU17\SH  P    IHUULWHGHFRXSOLQJFRUHDQG[VWXG
+523ULFH  FP   
7KHDQWHQQDLVSRZGHUFRDWHGLQVWDQGDUGFRORUV
*35 )LQGPRUHGXDOEDQGDQWHQQDV RIEODFNZKLWHUHGRUVLOYHU,WDOVRFRPHVZLWKWKH
6DPHDV*3EXWRPQLGLUHFWLRQDO WRXJK/H[DQŒ:HDWKHU6KLHOGOLNHLWVELJEURWK
ZLWKGHJUHHHOHFWULFDOGRZQWLOW HUV7KLVPRGHODOVRXVHVWKHFRPPHUFLDOYROW
+523ULFH 6HH3DJH 6HH3DJH JHDUPRWRU
7KH DQWHQQD KDV D 21( <($5 12 0$77(5
:+$7:$55$17<WRWKHRULJLQDORZQHU
'XSOH[HUV
6SHFÀFDWLRQV
:KHQXVLQJDVLQJOHDQWHQQDZLWKPRELOHUDGLRVWKDW
&KHFNIRU KDYHVHSDUDWH0+]DQG0+]RXWSXWV\RX
‡/RZHUPDVWVL]Hµ:HLJKWOEV
‡/RZHUPDVWOHQJWKµ
6SHFLDO PXVWXVHDGXSOH[HU ‡:KLSOHQJWKµ
&RPHWKDVDZLGHYDULHW\RIGXSOH[HUV WULSOH[HUVZLWK ‡7RWDODQWHQQDOHQJWK0+]SRVLWLRQµ
2IIHUVDW JROGSODWHGFRQQHFWRUVKLJKLVRODWLRQDQGWKHKLJKHVW ‡7RWDODQWHQQDOHQJWK0+]SRVLWLRQµ
KDPUDGLRFRP SRZHUKDQGOLQJDELOLWLHV6HHSDJH ‡&RQWLQXRXVFRYHUDJH0+]
‡3RZHUUDWLQJ:DWWV3(3
'LDPRQG KDV D ZLGH FROOHFWLRQ RI GXSOH[HUV DQG
WULSOH[HUV IRU FRXSOLQJ DQWHQQDV DQG WUDQVFHLYHUV ‡7\SLFDO6:5RUOHVV
6HHSDJH +523ULFH&$//

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


0(7(5$17(11$6
/RZ1RLVH0HWHU/RRS)HG$UUD\V
&XVKFUDIWҋVFRPSXWHURSWLPL]HGWKLUGJHQHUD
WLRQ *.6& /RRS )HG$UUD\ /)$  \DJLV DUH
VSHFLILFDOO\GHVLJQHGIRUORZQRLVH²KHDUZHDN
VLJQDOVWKDWRWKHUVFDQҋW
+LJKO\ VXSSUHVVHG VLGH OREHV HOLPLQDWH
XQZDQWHGQRLVHDQGVLJQDOSLFNXSIURPVLGHV
PDNLQJ\RXUGHVLUHGVLJQDOSRSRXW
6HHDQGKHDUIRU\RXUVHOIKRZVLJQDOVSRSRXW
IURPDORZQRLVH*.6&/)$DVFRPSDUHGWRD
WRSSHUIRUPLQJ\DJLDWZZZFXVKFUDIWDPDWHXU
FRP/)$0(/SKS
:LGHVSDFHG /)$ \DJLV KDYH ORZHU 6:5
KLJKHUJDLQEHWWHUIURQWWREDFNDQGDUHPRUH
EURDGEDQGHGWKDQGLSROHIHG\DJLV
&XVKFUDIWҋVGLUHFW2KPIHHGKDVQRORVV\
PDWFKLQJ QHWZRUN WKDW OLPLWV SRZHU KDQGOLQJ
7KHVH/)$VKDQGOH:DWWV<RXUDFWXDO /)$0(/
RSHUDWLRQDOSRZHULVOLPLWHGE\\RXUFRD[FRQ
QHFWRUVDQGRWKHUDFFHVVRULHV
&XVKFUDIW/)$VDUHDOVRFRPSXWHURSWLPL]HG
IRUPD[LPXPPHFKDQLFDOVWUHQJWKXVLQJH[FHS
WLRQDOO\VWURQJWRROHGSDUWVWRJLYH\RX\HDUVRI
UHOLDEOHVHUYLFH
$OO&XVKFUDIW0HWHU/)$VKDYHKHDY\GXW\
LQFKGLDPHWHUGRXEOHZDOOHGERRPVµIXOO\
LQVXODWHGHOHPHQWVDQGµRXWHUWLSVHFWLRQV
&OLPEWKHWRZHURQO\RQFH
/)$0(/

/)$0(/
0HWHU$QWHQQD3HUIRUPDQFH

 3RZHUKDQGOLQJLVOLPLWHGRQO\E\RSHUDWLQJVWDWLRQDFFHVVRULHVVXFKDVFRD[

6HHZZZFXVKFUDIWDPDWHXUFRPIRUIXOOVSHFLILFDWLRQV6:5FXUYHV
/)$0(/ SDWWHUQVJDLQZLQGORDGLQJZLQGVXUYLYDOIURQWWREDFNDQGPRUH

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


0(7(5$17(11$6
/RZ1RLVH0HWHU/RRS)HG$UUD\V

0HWHU(OHPHQW/RRS)HG$UUD\

0HWHU(OHPHQW/RRS)HG$UUD\

0HWHU(OHPHQW/RRS)HG$UUD\

0HWHU$QWHQQD3HUIRUPDQFH
$OORXU/)$ҋVDUH
683(5/2:12,6(
+($9<'87<
/DUJHGLDPHWHUERRPV
5DWHGWRN:

0HWHU(OHPHQW/RRS)HG
$UUD\

 3RZHUKDQGOLQJLVOLPLWHGRQO\E\RSHUDWLQJVWDWLRQDFFHVVRULHV
VXFKDVFRD[
2WKHURSWLRQVDYDLODEOHLIKLJKHUZLQGORDGLQJVXUYLYDELOLW\LV
UHTXLUHG
/)$0(/UHTXLUHVDFKRNHEDOXQ

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


%$6($17(11$6
5
 PHWHU YHUWLFDO
UHTXLUHV QR UDGLDOV
:66%&:QR
DQWHQQDWXQHUQHHGHG
(DV\ WR DVVHPEOH
ORZ SURÀOH 5XJJHG
FRQVWUXFWLRQ 7KLFN À
EHUJODVVLQVXODWRUVDOO
VWDLQOHVVVWHHO KDUG
ZDUH  IW WDOO 
OEV0RXQWVWR²
LQFKPDVWVTIWZLQG
VXUIDFH
$6
HOHPHQWWULEDQG P EHDPRQDQ
IWERRPKDQGOHVIXOOOHJDOSRZHUOLPLW$WUXHKLJK
SHUIRUPDQFH WULEDQGHU ZLWK SUHFLVHO\ WXQHG KLJK 0$%
SRZHU WUDSV FDUHIXOO\ VHOHFWHG HOHPHQW OHQJWKV EDQGEHDPLQDFRPSDFWOESDFNDJH
DQGSURSHUVSDFLQJ+LJKJDLQORZ6:5DQGZLGH $XWRPDWLF EDQG VZLWFKLQJ HDV\ LQVWDOOD
EDQGZLGWKPDNHVWKLVDSUHPLXPDQWHQQDFKRLFH WLRQKDQGOHV:DWWVRQDIWLQFK
$DGGVRQP ERRPZLWKOHVVWKDQIWRIWXUQLQJUDGLXV
,PSUHVVLYH VLGH UHMHFWLRQ DQG IURQWWR
EDFN UDWLR PDNHV WKLV D JUHDW SHUIRUPLQJ
+)DQWHQQD

5
 0HWHU 9HUWL
FDO UHTXLUHV QR
UDGLDOV 2SWLRQDO
57% WLOW EDVH
DQG5*.WKUHH
SRLQWJX\NLW

$6
&ODVVLFHOHPHQWWULEDQG P EHDP
RQ D  IW ERRP KDQGOHV IXOO OHJDO SRZHU OLPLW
&RQVWUXFWLRQIHDWXUHVLQFOXGHGSLQQHGERRPVHF
WLRQV KHDY\ GXW\ HOHPHQW FODPSV ZLWK EDFNLQJ
SODWHVDQGDOOVWDLQOHVVVWHHOKDUGZDUH+LJKSRZ
HUWUDSVDUHVWLOOKDQGPDGHDQGLQGLYLGXDOO\WXQHG
$SURYHQSHUIRUPHU$DGGVP
$6
,QFUHDVH WKH UDQJH RI \RXU GXDOEDQG
EDVHVWDWLRQZLWKDGXDOEDQG\DJL(OLPL
QDWHDQH[WUDIHHGOLQHDQGUHDOL]HH[WUD
JDLQIRU\RXU)0GLJLWDOPRGHV3UHWXQHG
 HOHPHQWV SHU EDQG $VVHPEOHV LQ D
VQDS $6 SUHWXQHG  HOHPHQWV
SHU EDQG IRU HYHQ EHWWHU SRLQWWRSRLQW
FRPPXQLFDWLRQV

&DOO7ROO)UHH
IRU4XRWHV
5,1*26
RQ&XVKFUDIW $5 P $5 P $5 P 5LQJRV
$:6 KDYH EHHQ DURXQG IRUHYHU 7KHVH FRPSDFW
HOHPHQW    0HWHU EHDP RQ D  IW ERRP $QWHQQDV )0YHUWLFDOVDUHEURDGEDQGHGOLJKWQLQJSUR
ZLWK DOO WKH VDPH FRQVWUXFWLRQ FKDUDFWHULVWLFV RI WHFWHGH[WUHPHO\UXJJHGHFRQRPLFDOHOHFWUL
WKH$6$GGWKHRSWLRQDO$IRUP FDOO\EXOOHWSURRIORZDQJOHDQGWKH\ZRUN

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


%$6($17(11$6
&XVKFUDIW+)$QWHQQDV

'XHWRUDSLGO\LQFUHDVLQJUDZPDWHULDODQG
&XVKFUDIW9+)8+)$QWHQQDV WUDQVSRUWDWLRQFRVWVFDOOIRUDYDLODELOLW\DQGSULFLQJ

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


%$6($17(11$6
+)5HVRQDWRUV
+XVWOHU GHOLYHUV UHOLDELOLW\ DQG SHUIRUPDQFH %H\RQG <RXU ([SHFWDWLRQV
&XVWRPL]H\RXU+)PRELOH
9+)8+)%DVH$QWHQQDV V\VWHP ZLWK +XVWOHU SUR
GXFWV5HVRQDWRUVPD\EH
XVHGVHSDUDWHO\RQRQHRI
P9HUWLFDOV PFP'XDO%DQG WKHPDVWVRUXSWRWKUHHDW 93
7KHVH HDV\WRDVVHPEOH YHUWL *5 DWLPHZLWKWKH93$GG 6ZLWFK EDQGV DXWR
FDOVDUHPDGHRIDOXPLQXPDQG WKH 4' VSULQJV DQG PDWLFDOO\ZLWKDQ\WKUHH
KLJKVWUHQJWK ÀEHUJODVV :KHQ 'XDOEDQG PRXQWVDVQHHGHGIRU\RXU +XVWOHU+)UHVRQDWRUV
GLVDVVHPEOHG WKH ORQJHVW SDUW PFP LQVWDOODWLRQ $GDSWV DQ\ +XVWOHU
LV DERXW 
 &KRRVH   RU  PDVWWRWULEDQGRSHUD
G% JDLQ DQG WKH RYHUDOO OHQJWK WLRQDXWRPDWLFDOO\
WKDWEHVWVXLWV\RXUDSSOLFDWLRQ 7KH*5LVDFRP
ELQDWLRQ *% DQG
+XVWOHU+)5HVRQDWRUV
* * * ,W LV IDFWRU\
WXQHGIRUTXLFNDQGHDV\
‡)UHTXHQF\ UDQJH LQVWDOODWLRQ
0+]
‡%DQGZLGWK0+] ‡ )UHTXHQF\ UDQJH
‡*DLQG% 0+]
 0+]
*
*% ‡ *DLQG%
‡ %DQGZLGWK0+]²
‡)UHTXHQF\ UDQJH P0+]²FP
0K] ‡ 2QHSLHFHUDGRPH
‡%DQGZLGWK0+] ‡ 96:5   #
‡*DLQG% UHVRQDQFH

*
+)%DVH$QWHQQDV
‡ )UHT5DQJH0+]
‡ %DQGZLGWK0+] +)0XOWLEDQG
‡ *DLQG%
%79 +XVWOHU%DVH$QWHQQDV
 9HUWLFDOV P
0RGHO %DQG *DLQ &RQQHFWRU +HLJKWIW P 
* * P G% 1)HPDOH   
%79 *% P G% 62   
7KH*LVRIVLPLODUGHVLJQ P * P G% 62   
DQGFRQVWUXFWLRQDVWKH* * P G% 1)HPDOH   
‡ )UHT5DQJH0+] * FP G% 1)HPDOH   
‡%DQGZLGWK0+] %79 *5 PFP G% 1)HPDOH   
‡&RQVWUXFWLRQ +LJK VWUHQJWK P %79 P     
ÀEHUJODVVDQGDOXPLQXP %79 WRP     
‡*DLQG% %79 P     
‡%URDGEDQGHGORZ96:5DW
EDQGHGJHV
* * ‡3RZHUFDSDELOLW\²IXOOOHJDO
OLPLWRQ66%RU&: +XVWOHU9+)8+)0RELOH$QWHQQDV
7KH * LV RI VLPLODU GH ‡6ROLGRQHLQFKÀEHUJODVVWUDS
VLJQ DQG FRQVWUXFWLRQ DV WKH IRUPVIRURSWLPXPHOHFWULFDO 0RGHO %DQG *DLQ 3RZHU 0RXQW
*5 DQGPHFKDQLFDOVWDELOLW\ /0& PFP   102
‡)UHTXHQF\ UDQJH  ‡+HDY\ ZDOO KLJK VWUHQJWK 0; PFP   0DJ
0+] DOXPLQXPWXELQJKHDY\GXW\ /0* P   102
‡%DQGZLGWK0+] DOXPLQXPPRXQWLQJEUDFNHW %%* P   102
‡&RQVWUXFWLRQ 2QH SLHFH DQGORZORVVKLJKVWUHQJWK %%* FP   102
UDGRPH LQVXODWRUV %%*7 P   7UXQN
‡*DLQG% ‡6WDLQOHVV VWHHO FODPSV DQG 0; P   0DJ
KDUGZDUH 0;% P   0DJ
5HSHDWHU$QWHQQDV ‡(DV\DVVHPEO\DQGWXQLQJ 0;% FP   0DJ
6) P   ;
7KH6SLULW6HULHV ‡6LQJOH OLQH IHHG ZLWK DQ\
OHQJWKRIRKPFRD[XVHG 6) P   ;
+XVWOHUҋVRPQLGLUHFWLRQDOFROOLQHDUGH
DV JURXQG PRXQW ZLWK RU 5; P   0DJ
VLJQEDVHVWDWLRQDQWHQQDVDUHHQFORVHG
ZLWKRXWUDGLDOVRUHOHYDWHG 5; P   0DJ
LQDUXJJHGÀEHUJODVVUDGRPHWKDWZLOO
PRXQWZLWKUDGLDOV 5; FP   0DJ
KHOS PLQLPL]H SDWWHUQ YDULDWLRQV GXH
‡$OOWKH%79ҋVFDQEHPRXQWHG &* P   ;
WR KLJK ZLQGV RU H[WUHPH FRQGLWLRQV
LQ D SLHFH RI 39& DQG GLV &* P   ;
0RGHOVDUHDYDLODEOHIRU
JXLVHGDVDÁDJSROHLQGHHG &*7 P   7UXQN
0+]DQG*+]7KHJDLQZLOO
UHVWULFWHGQHLJKERUKRRGV %79 &*7 P   7UXQN
EHXQLW\RUG%GHSHQGLQJRQ
7+)  8QLW\  7UXQN
WKHIUHTXHQF\
8*0  8QLW\  0DJ
&DOO+52IRUTXRWHVRQFXVWRP 0RGHO07.
IUHTXHQFLHV PHWHUDGGRQNLWIRUWKHDQG%79

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


02%,/($17(11$6028176
9+)8+)0RELOH$QWHQQDV 0RELOH0RXQWV
‡%0%XPSHUPRXQWZLWK ‡&&KURPHSODWHGVSULQJ
'XDO%DQG &RLODQG:KLS VWDLQOHVVVWHHOVWUDSDQG &RSSHUEUDLGHGFHQWHUFRQGXFWRU
'XDO EDQG PRGHOV IRU    0RGHOV IRU  RU  0+] DUH GLDPHWHUEDOOZLWK[ WRSUHYHQWGHWXQLQJ
0+]JLYH\RXG%G%JDLQ SRZHUUDWHGIRU:DWWV102 WKUHDGV
7KH DQWHQQDV DUH UDWHG DW  VW\OHFRLORQHDFKUHTXLUHV %0 ‡ 566 6WDLQOHVV VWHHO 
:DWWV DQ102PRXQW ‡0%03RZHUIXOGLD VSULQJ8VHGIRUPRELOHDQWHQQDV
PHWHUPDJQHWZLWK[ EHWZHHQ UHVRQDWRU DQG PDVW
/0& /0* G%JDLQ WKUHDGV
RI5*8 &RSSHUEUDLGHGFHQWHUFRQGXFWRU &
‡ 102VW\OHFRLO ‡ &KURPHWRSDQGERWWRP FRD[ ZLWK 3/ FRQ WRSUHYHQWGHWXQLQJ$FFHSWV
‡ &KURPHWRS ‡ &RQWDFWVLOYHUSODWHGSXVKSLQ QHFWRU [DQWHQQDV
‡ &RLODQGZKLSRQO\  0%0
‡ +/0 7UXQN OLS PRXQW
/0* ‡ 660 +HDY\ GXW\ EDOO GHVLJQHG IRU KDWFK DQG
0; PRXQWZLWKVWDLQOHVVVWHHO VODQWHG EDFN YHKLFOHV
‡ &KURPHWRS %%* G%JDLQ VSULQJ ZLWK FRSSHU EUDLGHG  GHJUHH  GLDPHWHU
‡ 102VW\OH FHQWHUFRQGXFWRUWRSUHYHQW EDOOZKLFKDFFHSWV[DQWHQQDV
 PDJQHWLFPRXQW %%* G%JDLQ GHWXQLQJGHJUHHDGMXVW 5*8FRD[ZLWK3/FRQQHFWRU
‡ IW5*8FRD[ ‡ &KURPHWRSVZLYHOEDOO DEOH  GLDPHWHU VWDLQOHVV
‡ 3/FRQQHFWRU  DQGVSULQJ VWHHOEDOO$FFHSWV[
DQWHQQDV ‡+277UXQNOLSPRXQWZLWK
%%*7 G%JDLQ 660 HDV\ RIIRQ ZLWK WKXPE
0DJQHWLF0RXQWV ‡ ,QFOXGHVWUXQNPRXQW ‡ 660 +HDY\ GXW\  GLDPHWHU NQRE  GHJUHH  GL
0RGHOVIRUDQG0+] ‡ IW5*8FRD[ VWDLQOHVVVWHHOEDOOPRXQWGHJUHH DPHWHUEDOOZKLFKDFFHSWV
DUH SRZHU UDWHG IRU  :DWWV ‡ 3/FRQQHFWRU DGMXVWDEOH$FFHSWV[DQWHQQDV [DQWHQQDV5*8FRD[ZLWK
(DFKKDVDQ102VW\OHFRLODQG 3/FRQQHFWRU
%%* ‡ 660 +HDY\ GXW\ VWDLQOHVV VWHHO
DPDJQHWLFPRXQW
6) VSULQJZLWK[FRXSOLQJVWXG ‡ 7/0 7UXQN OLS PRXQW
0; 0+] G%JDLQ &RSSHU EUDLGHG FHQWHU FRQGXFWRU WR ZKLFK DFFHSWV  [ 
0; 0+] G%JDLQ :DYH SUHYHQWGHWXQLQJ DQWHQQDV 5*8 FRD[
0; 0+] G%JDLQ & ZLWK3/FRQQHFWRU
‡ &KURPHWRS %DVHORDGHGZDYHPRG
‡&&KURPHSODWHG
‡ R]PDJQHW HOVIRU0+]0+]DQG EDOO PRXQW$FFHSWV  ‡ 590 5HFUHDWLRQDO YH
‡ IW5*8FRD[ 0+]DUHSRZHUUDWHGIRU [DQWHQQDV KLFOH PRXQW ZLWK KHDY\
‡ 3/ :DWWV GXW\EUDFNHW(DV\DQWHQQD
 FRQQHFWRU 6) 0+] G%JDLQ ‡&6WDLQOHVVVWHHO UHPRYDO RU OD\ GRZQ ZLWK
6) 0+] G%JDLQ VSULQJ &RSSHU EUDLGHG WKXPENQREEDOODFFHSWV
‡ µ[WKUHDG FHQWHUFRQGXFWRUWRSUHYHQWGHWXQLQJ [DQWHQQDV5*8
0;% 0+] G% ‡ 0RXQWWRDQ\ $FFHSWV[DQWHQQDV FRD[ZLWK3/FRQQHFWRU
0;%0+] G%  +XVWOHUPRXQW
‡ 6DPHDVDERYHEXWDOOEODFNFRLO $OOPRXQWVEHORZDUHVXSSOLHGZLWK5*8FDEOH

&ROOLQHDU 5; 0+] G%JDLQ 0RGHO'HVFULSWLRQ


&ROOLQHDUPRGHOVIRU0+] 5; 0+] G%JDLQ
DQG0+]SURYLGHG% 5; 0+] G%JDLQ &+0$ µ+ROHPRXQWZLWKRXWFRQQHFWRU
‡ R]PDJQHWLFPRXQW &+0$% µ+ROHPRXQWZFULPSRQ%1&
JDLQ7KH\DUHSRZHUUDWHGIRU &+0%
‡ IW5*8FRD[ &+0$3 µ+ROHPRXQWZFULPSRQ3/
:DWWV$OOKDYHDVZLYHO
‡ 3/FRQQHFWRU 
EDOOIRUYHUWLFDOSRVLWLRQLQJ &+0% µ+ROHPRXQWZLWKRXWFRQQHFWRU
5;
&+0%% µ+ROHPRXQWZFULPSRQ%1&
&* 0+]EDQGZLGWK
&+0%% µ+ROHPRXQWZFULPSRQ3/
&* 0+]EDQGZLGWK
‡[WKUHDG $FFHVVRULHV &00$
‡RYHUZDYH &00$ 102R]PDJZVROGHURQ3/
&70$ 7UXQNPRXQWZLWKRXWFRQQHFWRU
&*7 0+]EDQGZLGWK &70$3 7UXQNPRXQWZFULPSRQPLQL8+)
&*7 0+]EDQGZLGWK
‡7UXQNPRXQWEDVH
‡IW5*8FRD[ &70$
‡3/FRQQHFWRU

8QLW\*DLQ 0.5 0RELOH0DVWV


$Q DQWHQQD WR FXVWRP WULP DV 5DGLDO.LW
QHHGHGIRU9+)RU8+)IUHTXHQ 8VHG WR FRQYHUW 5; 6HULHV 6) )ROG2YHU0DVWV 6ROLG0DVWV
FLHV&RYHUV0+] 6HULHV &*6HULHVWRÀ[HGVWDWLRQ 02 02
RSHUDWLRQ&RQWDLQVWKUHHUDGLDOV 0RELOHPDVWKLJKIRU 0RELOH PDVW  KLJK IRU
02
02
02

7+) 0RXQW FDQ DFFHSW DQ\  [  EXPSHU IHQGHU RU KLWFK EXPSHU IHQGHU RU KLWFK
7UXQN/LS0RXQW 7+)
WKUHDGHGPRXQW PRXQWLQJ)ROGVRYHUDW PRXQWLQJ6ROLGDOXPLQXP
DERYHEDVH[ ZLWKZKLWHYLQ\OFRDWLQJ
02

8*0
WKUHDGHG [WKUHDGHG
0DJQHW0RXQW
02 02
4'4XLFN'LVFRQQHFW 0RELOHPDVWKLJKIRU 0RELOH PDVW  KLJK IRU
5HPRYH DQWHQQDV HDVLO\ ZLWK D EXPSHU IHQGHU RU KLWFK WUXQN RU GHFN PRXQWLQJ
SXVKDQGWZLVWUHOHDVH&RPSUHV PRXQWLQJ)ROGVRYHUDW 7KUHHUHWXQLQJWLSURGVLQ
VLRQ GHVLJQ RI  VWDLQOHVV DERYHEDVH[ FOXGHG[WKUHDGHG
8*0 VWHHO[WKUHDGV WKUHDGHG

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


6:/6&$11(5 +)+7$17(11$6
/RJ3HULRGLF 'LVFRQH$QWHQQDV

+9$0RELOH$QWHQQD6\VWHP
)RU1HZ+)9+)7UDQFHLYHUV
0)- VXFKDV,&,&
8OWUD ZLGHEDQG DQ )7)7)7DQGWKH)75
WHQQD UHFHLYHV 
)LYH EDQG FDSDELOLW\  FP  P  P DQG  +)
0+] 3HUIHFW IRU VFDQ
QHUV7UDQVPLW EDQGVWKURXJKXVHRIORDGLQJFRLOV)ROGRYHUIHDWXUH
0+] +DQGOHV  : DOORZVIRUHDV\DFFHVVLQWRORZRYHUKHDGEXLOGLQJV
,GHDO IRU    PHWHUV
&/3    0+] ,QFOXGHV 62 FRQQHF %DQGV6XSSOLHG PPPFP
WRU ҋ FRD[ VWDLQOHVV VWHHO HOHPHQWV DQG 2SW/RDGLQJ&RLOV PPPP
7KH &/3 DQWHQQDV DUH KLJK JDLQ 3RZHU3(3 +):9+):
ZLGH EDQG 9+)8+) ORJ SHULRGLF EHDPV PRXQWLQJKDUGZDUH+523ULFH
0RXQW&RQQHFWLRQ 8+)
IRUKRUL]RQWDOO\SRODUL]HGEDVHVWDWLRQXVH
/HQJWK  +9$ 
&RYHUVDPDWHXUEDQGVIURP²0+]
6:5 QRPLQDO
)0EURDGFDVWLQJVFDQQLQJ9+)8+)79
DLUEDQGFRPPXQLFDWLRQVJRYHUQPHQWDQG
'-'1- +9$3ULFH 
EXVLQHVVEDQGV
6XSHU:LGHEDQG
)RUZDUG JDLQ LV  WR  G% ²  WR 
WLPHVWKHJDLQRIDQRQGLUHFWLRQDOGLVFRQH 'LVFRQH 6KRZQZLWKRSWLRQDO
W\SHDQWHQQD7KH96:5LVOHVVWKDQ 0RQLWRU0+]7UDQVPLW PRXQWFDUDQGUDGLR

DFURVVWKHEDQG7KHKLJKTXDOLW\DOXPLQXP RQ     0+]$OO


DQWHQQDVKDYHDERRPGHVLJQWKDWDOORZV VWDLQOHVV VWHHO ,QSXW SRZHU 2SWLPDOXVHZKHQ
 :DWWV PD[LPXP ,PSHG 9+)8+)KDYH
PRYHPHQWRIWKHSKDVLQJOLQH'LVWRUWLRQV
DQFHRKPV96:5 VHSDUDWHRXWSXWV
LQ WKH YHUWLFDO DQG KRUL]RQWDO SODQHV DUH
PLQLPL]HG DQG HOHPHQW DGMXVWPHQW LV QRW /HQJWKPHWHUV0RXQWV 0;0 +)P
QHFHVVDU\ 7KH ERRPWRPDVW EUDFNHW LV RQWRPDVWV'8+)DQG'1-
PDGHRIDOLJKWZHLJKWDQGUXJJHGPDJQH 7\SH1 FRQQHFWRU +52 3ULFHV '- 'XSOH[HU P

VLXPDOOR\ '1- 


&UHDWH$QWHQQDV
6:/$QWHQQDV 6SHFLÀFDWLRQV
‡ +)PPFPGXSOH[HU
‡ ²0+]/3)
‡ ²0+]+3) 8VHZLWK+)9+)
PRELOHWUDQVFHLYHUV
‡ UHFHLYHRQO\
VXFKDVWKH,&
‡ :DWWV 3(3 VHULHV)7RU
‡ /RVV G%/3) FRPELQHPDQG
  G%+3) +)ULJV
‡ ,VRODWLRQ G%
2SWLRQDO/RDGLQJ&RLOV
';6:/ +9& P 
7KH';6:/LVWXQHGIRUWKHPRVWSRSXODU6:/ +9& P 
EDQGV  +9& P 
DQGPHWHUV ,WFDQEHXVHGDVDPXOWLEDQG
WUDQVPLWDQWHQQDZLWKWKHDSSURSULDWHDQWHQQD $QWHQQDVIRU+DQGKHOGV
WXQHU /HQJWK LV  IHHW 5HTXLUHV D VLQJOH
7KH2ZO VXSSRUW6WDQGDUGFRD[FRQQHFWVDQWHQQDWR
\RXU UDGLR )HHG SRLQW LV  RKPV 62
FRQQHFWLRQ+523ULFH 65+6
:DQW WR NHHS WKRVH ';8/75$ 5+65+60$
ELUGVRII\RXUDQWHQQD 7KHPXOWLHOHPHQW';8/75$KDVH[WUHPHO\
V\VWHP" ORZQRLVHSHUIRUPDQFH7DSHUHGZLQJGHVLJQ
DOORZV EURDGEDQG RSHUDWLRQ &RQÀJXUH DV 5+&$65+&$
7KH 2:/ LV MXVW GLSROHLQYHUWHGYHHRUVORSHU&RYHUV0:
WKH WULFN 0RXQW WURSLFDO6:JRYHUQPHQWPLOLWDU\HPEDVV\ 5+6
WKLV IHOOD RQ WRS PDULWLPH DLUFUDIW DQG FRPPHUFLDO IUHTXHQ
RI \RXU WRZHU FLHV  IHHW ORQJ 0DGH ZLWK ,625(6
LQGXFWRUV DQG SDUDOOHO ZLUH HOHPHQWV 8VHV
5+
DQG WKH ELUGV
ZLOOVWD\DZD\ WKH 'HOWD& FHQWHU LQVXODWRU 'HOWD&,1 HQG
LQVXODWRUVDQGJDXJHVROLGFRSSHUZLUHZLWK 65+$
JUH\39&LQVXODWLRQ(OHPHQWVDUHVHSDUDWHG
+523ULFH E\JUH\39&URG+523ULFH 65+65+60$

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


$17(11$6
7KH6WDQGDUGE\:KLFK$OO2WKHUVDUH-XGJHG
'LDPRQG%DVH$QWHQQDV
$OOEDVHDQWHQQDVJURXQGHGIRUOLJKWQLQJSURWHFWLRQ)DFWRU\DGMXVWHGIRU$PHULFDQDPDWHXUEDQGVQRWXQLQJUHTXLUHG
‡:LGHEDQGSHUIRUPDQFH
‡+LJKHVWJDLQ
‡)LEHUJODVVUDGRPH
‡)DFWRU\DGMXVWHG
‡'&JURXQGHG
‡836VKLSSDEOH
‡+LJKZLQGUDWLQJ
‡6WDLQOHVVKDUGZDUH

$ % &
;$

;$
;

0+]RQO\'3*+LVDGMXVWDEOH
IURP0+]
0+]:3(30+]
:3(30+]:3(3

0RVWORQJHUEDVHDQWHQQDVUHTXLUHDGGLWLRQDOIUHLJKW7KLVDSSOLHVWR$//'LDPRQG%DVH$QWHQQDV

'LDPRQG+DQGKHOGDQG5HFHLYLQJ$QWHQQDV
6SHFLDOW\$QWHQQDV
+LJK3RZHUPFP0RELOH
'XDOEDQGPRELOHDQWHQQD:DWWV P DQG
:DWWV FP 8VH.DQG.VHULHV
PRXQWV15$+523ULFH

4XDG%DQG)0
PPPFPTXDG)0EDQGDQWHQQD
IRU)75UDGLRRUPXOWLUDGLRDSSOLFDWLRQV
8VH.DQG.VHULHVPRXQWV&5$
+523ULFH
PFP0RELOH
,GHDODQWHQQDIRULQFUHDVHGSHU
IRUPDQFHRI+7UDGLRRUZKHUH
DFRPSDFWDQWHQQDLVUHTXLUHG
0DJQHWLFPRXQWEDVHZDYH
 P  DQG  ZDYH  FP 
EODFNÀQLVK$YDLODEOHLQ8+)RU
60$FDEOHFRQÀJXUDWLRQ
050560$+523ULFH

&5$‡
15$‡

PFP0RELOH
05‡

15+5.6 +523ULFH


0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


$17(11$6 '83/(;(56
'LDPRQG0RELOH$QWHQQDV
)DFWRU\DGMXVWHGIRU$PHULFDQDPDWHXUEDQGVQRWXQ
LQJUHTXLUHGXQOHVVVSHFLÀHG0RELOHDQWHQQDVKDYH
IROGRYHU IHDWXUH ZLWK VSULQJ ORDGHG KLQJH H[FHSW
15%10215%10200
0*05DQG0560$ 0DJQHWLF
PRXQW QRW UHFRPPHQGHG IRU DQWHQQDV
RYHU

15+%10215+102

6*$6*$102
&5$&5$102

6*$6*102
15%102

15%102
0560$

'LDPRQG'XSOH[HUVDQG7ULSOH[HUV  %ODFNDQRGL]HGÀQLVK
‚ 0DJPRXQWZLWK
5*FDEOHZ8+)
 0DJ0WZ
5*FDEOHZ60$
 0DJQHWLF PRXQWV QRW UHFRPPHQGHG
9HKLFOHJURXQGUHTXLUHG
 0+]RQO\
 :DWWVRQP:DWWVRQP
DQGFP
 *DLQ5DWHGLQG%L
 7XQDEOHIURP0+]
 %ODFNZLWKDGKHVLYHEDFNHGPRXQW

0;+
0;1
0;
0;0
0;
0; 0;
0;1

0;'

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


$&&(6625,(6 028176
6SHFLDO7UXQN0RXQW 'LDPRQG$FFHVVRULHV
IRU[WKUHDGDQWHQQDV
.&
+523ULFH
+HUH
V WKH LGHDO PRXQWLQJ V\VWHP IRU
2XWEDFNHU 3HUWK 2% -U DQG RWKHU
PHGLXPZHLJKWDQWHQQDV$VSULQJLVUHF
RPPHQGHGIRUVWLIIRUKHDY\DQWHQQDV
3RZHU :DWWV506
&DEOH 
5*
 7HÁRQŠFRD[
&RQQHFWRU 3/
$GMXVWPHQWD[LV
1RWH8VH&IRRW
H[WHQVLRQ IRU IURQW UDGLR
LQVWDOODWLRQ

0RELOH0RXQWV

.0

630
630102
'3.101

.0
.6

.&102
.6102
.&
.6

.&
.&102
.&
.6
.6102

.
0RWRUL]HG
0RXQW

8VH&IRUIURQWUDGLRLQVWDOODWLRQV

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


1026HULHV$QWHQQDV
&KRRVLQJ<RXU/DUVHQ0RELOH$QWHQQD 6HOHFWDQ$QWHQQD
&KRRVH\RXUDQWHQQDFRQÀJXUDWLRQEDVHGRQWKHIUHTXHQF\EDVHW\SH
2QFHWKHEDVHDQGWKUHDG
HJPDJQHWLFPRXQW DQGWKUHDGW\SH HJ102 .HHSLQPLQGWKDW W\SH DUH VHOHFWHG WKH
LW LV QHFHVVDU\ WR VHOHFW D EDVH ZLWK WKH VDPH PRXQWLQJ VW\OH DV WKH ÀQDOVWHSLVWRFKRRVHWKH
DQWHQQD7\SLFDOEDVHVDQGVW\OHVDUHVKRZQEHORZ DQWHQQD

$OO /DUVHQ PRELOH DQWHQ


7KUHDG7\SHV QDV PHHW WKH LQGXVWU\ҋV
7KHVHDUHH[DPSOHV PRVW GHPDQGLQJ VSHFV
RIHDFKRIWKHWKUHDG IRUHOHFWULFDOHIÀFLHQF\DQG
W\SHV6HOHFWRQHDQG PHFKDQLFDOGXUDELOLW\
WKHQVHOHFWWKHEDVH
32% *DLQDQWHQQDVDUHPDGHRI
DFRLODQGDZKLS4XDUWHU
ZDYH DQWHQQDV DUH MXVW
102+)7+. DZKLS
102+)
‡&RORUV%ODFNFRLOEDVH
FKURPHRUDOOEODFNZKLS
‡\HDU 1R1RQVHQVH
:DUUDQW\Œ
‡0DGHLQ86$

102%
6FDQQHU
0RXQW&RQÀJXUDWLRQV $QWHQQD
,Q DGGLWLRQ WR WKH SRSXODU 0RWRUROD µ 102  PRXQWV VKRZQ KHUH
PRELOH DQWHQQDV IRU WKH /DUVHQ PRXQW /0  DQG 32 PRXQW 32  DUH
7UL%DQG
H[FHOOHQW FKRLFHV IRU DPDWHXU XVH (DFK RI WKHVH PRXQWV $QWHQQD
$%&'
FRPHVLQRQHRIWKHWKUHDGW\SHV 102
0RXQWV

102.SUHPLXPTXDOLW\URRIWRS $102% P
7KLVLVDJUHDWDQWHQQD
102 005 PDJ PRXQW  SXOO )UHTXHQF\0+]
IRU VFDQQHU RSHUDWLRQ
VWUHQJWK 102005 *DLQ  G%
,W LV 127 WXQDEOH IRU (OHFWULFDO  :DYH
1027/3KHDY\GXW\WUXQNOLG DPDWHXURSHUDWLRQ +HLJKW  µ
102 70% HOHFWURSROLVKHG WUXQN JXWWHU
EUDFNHW )UHTXHQF\
102 +) IRU ORZ RU KLJK IUHTXHQFLHV SXOO 
 0+] % 1024&
FHQWHU SLQ DQG LQVXODWRU IRU KLJK IUHTXHQ )UHTXHQF\0+]
*DLQ G%L“G%
FLHV  0RXQW102 *DLQ 8QLW\
102 +)7+. 102 WKLFN PRXQW (OHFWULFDO :DYH
+HLJKW
+HLJKW µPD[
VXUIDFHVWRWKLFN KLJKRU
ORZIUHTXHQFLHV

&102% P
)UHTXHQF\0+]
10270% &DOOD *DLQ  G%
(OHFWULFDO  :DYH
+HOSIXO +HLJKW  µ
+DPDW
+52IRU ' 102
)UHTXHQF\0+]
4XRWHV 0+]
0DJQHWLF0RXQW RQ/DUVHQ *DLQG%L9+)G%L8+)
(OHFWULFDOFHQWHUORDGHG
%1&00%1& $QWHQQDV ZDYH9+)
&RQQHFWRUV%1&RQWKHPDJDQG &ROOLQHDU8+)
FRD[&RD[5*$8
1027/3 +HLJKW µ

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


02%,/($17(11$6
'XDO%DQG 2Q*ODVV$QWHQQDV ,Q%XLOGLQJ3XEOLF
$QWHQQDV 6DIHW\$QWHQQDV
/DUVHQҋVDGYDQFHGGHVLJQ ‡3DWHQWHGORZLPSHG
/DUVHQ GXDO EDQG DQWHQQDV WHFKQLTXHVLQJODVVPRXQW DQFHGHVLJQLVHOHFWUL
SURYLGH H[FHOOHQW SHUIRUPDQFH DQWHQQDVUHVXOWLQVXSHULRU FDOO\HIÀFLHQW
RQPDQGFP(DFKDQWHQQD WUDQVPLWUDQJHSOXVWUHPHQ ‡6LQJOHEDQGDQWHQQDV
LV IDFWRU\ SUHVHW WR JXDUDQWHH GRXVPHFKDQLFDOGXUDELOLW\ DUHSUHFXWZDYH
RSWLPDO SHUIRUPDQFH ZLWK QR *ODVV PRXQW SHUIRU GHVLJQ
WXQLQJUHTXLUHG PDQFHLVQHDUO\LGHQWL ‡7UDQVIRUPHURXWVLGH
FDOWRURRIWRSPRXQWV YHKLFOH
‡$UDQJHRIGXDOEDQGFRQÀJXUD ZLWK QR KROHV WR GULOO ‡&RSSHUSODWHGZKLSV
WLRQVLVDYDLODEOH 3URSHUO\ LQVWDOOHG ‡5DWHG:DWWVRXWSXW 36,%9+)0+]
‡.XOURG FRSSHUSODWHG  RQJODVV DQ ‡/HVVWKDQG%ORVV
VWDLQOHVVVWHHOURGVIRUJUHDWHU )HDWXUHV
WHQQDVJULSIRU WKURXJKJODVVYVURRI
WUDQVPLWUDQJH ‡:LGHEDQGZLGWK9+)0+]
\HDUV XQGHU WRS
RSHUDWLRQ
‡6ROGHUHG G H P D Q G L Q J ‡1HZFLUFXLWERDUGWHFK
‡$HVWKHWLFDOO\ SOHDVLQJ  PP
FRQWDFWV F R Q G L W L R Q V  QRORJ\ORFNVLQVROLG
LQFK WKLFNQHVVWRFHLOLQJ
‡3UHPLXP \HW DUH HDV\ VWDWHSHUIRUPDQFH
‡96:5
PDWHULDOV WRUHPRYHDQG ‡0ҋVEHVWRQJODVV
‡2SWLPL]HG WR ORZIUHTXHQF\ LQ
DQGFRQ UHPRXQW DGKHVLYHJULS
EXLOGLQJHQYLURQPHQWV
VWUXFWLRQ ‡0DGHLQ86$ZLWK
‡[LQFK [PP 
SURYLGHVX \HDU1R1RQVHQVH $SSOLFDWLRQV
SHULRUHOHF :DUUDQW\Œ ‡,QEXLOGLQJUHSHDWHUV\VWHPV
WULFDOSHUIRU ‡%LGLUHFWLRQDODPSOLÀHU
PDQFHDQG ‡3ROLFHÀUHJRYHUQPHQW

PHFKDQLFDO VWDLQOHVV ‡/RZSURÀOHFHLOLQJPRXQWLQJ
GXUDELOLW\ VWHHOURG ‡(QKDQFHGIRULQEXLOGLQJJDLQVHW
‡\HDU1R WR,%HQYLURQPHQWPXOWLÁRRUFRYHU
1RQVHQVH 'XDO DJHDYRLGVWKHQXOOVRIWUDGLWLRQDO
:DUUDQW\Π%DQG GLSROHV
%UDVV
7KH.*  RSSHU
F
LVD9+)KDOI VROGHUHG
ZDYH DQG D FRQQHFWLRQV
8+)FROOLQHDU
,W FRPHV ZLWK
IHHWRI5*
8FRD[ *
()
0DNUREOHQG ,QVWDOOHGDQWHQQDÀWVÁXVKZLWK
SODVWLFVKHOO FHLOLQJ
( 1026+
)UHTXHQF\ 0+] +
*DLQ8QLW\ 7KH DQWHQQD LQVWDOOV HDVLO\ 36,%9+)
3RZHU:DWWV RQ DQ\ ÁDW VXUIDFH 5HPRYH 0+]
7\SH9+)&HQWHUORDGZDYH WKHZKLSZLWKRXWWRROVIRUFDU )HDWXUHV
 8+)&HQWHUORDGZDYH ZDVKHVRUORZJDUDJHV P6LQJOH%DQG ‡:LGHEDQGZLGWK9+)8+)
%DVH 1028+)EDVH%ZVSULQJ
+HLJKWµ + .*3/ 0+]0+]0+]
)UHTXHQF\ 0+] ‡$HVWKHWLFDOO\ SOHDVLQJ PP
'XDO%DQG *DLQG% LQFK WKLFNQHVVWRFHLOLQJ
7\SH :DYH ‡96:5
) 003/ &RQQHFWRU3/ ORRVH
* .*&;3/ +HLJKWµ
‡2SWLPL]HG WR ORZIUHTXHQF\ LQ
)UHTXHQF\ 0+] )UHTXHQF\  EXLOGLQJHQYLURQPHQWV
*DLQ8QLW\  0+] $SSOLFDWLRQV
3RZHU:DWWV *DLQ G%9+)8+)
&RD[ 5*$8'XDO6KLHOGҋ ‡,QEXLOGLQJUHSHDWHUV\VWHPV
3RZHU :DWWV
3XOOVWUHQJWK OEV 7\SH ZDYH&ROOLQHDU $VN$ERXW ‡%LGLUHFWLRQDODPSOLÀHU
7\SH9+)&HQWHUORDGZDYH &RQQHFWRU 3/ ORRVH ‡3ROLFHÀUHJRYHUQPHQW
 8+)&HQWHUORDGZDYH +HLJKW µ )UHH ‡/RZSURÀOHFHLOLQJPRXQWLQJ
%DVH µURXQGPDJQHWPRXQW
‡(QKDQFHG IRU LQEXLOGLQJ PRGHVW
&RQQHFWRU 3/LQVWDOOHG 6KLSSLQJ JDLQPXOWLÁRRUFRYHUDJHDYRLGV
:HLJKW OE
+HLJKWµ WKHQXOOVRIWUDGLWLRQDOGLSROHV

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


9+)8+)
&RPHW'XDO%DQG$QWHQQDV

VRPHORQJHUDQWHQQDVUHTXLUHDGGLWLRQDOIUHLJKW
&RPHW7UL%DQG$QWHQQDV
*3

*3

*3
'XDO 7ULEDQG
9+)8+)
&RPHWGHYHORSHGWKH6XSHU/LQ
HDU&RQYHUWHU 6/& WRLQFUHDVH
DFWXDOJDLQRIGXDODQGWULEDQG
DQWHQQDV
‡ $ FRPSOHWH SUHIRUPHG
SKDVLQJ FRLO DQG SKRV
SKRUXV FRSSHU HOHPHQW
HOLPLQDWH DGGLWLRQDO FRP
SRQHQWVDQGJDLQORVV
‡ 7KH6/&LVHOHFWULFDOO\YHU\
HIÀFLHQW SURYLGLQJ D ORZ
DQJOHRIUDGLDWLRQGLUHFWO\
WRWKHKRUL]RQ
‡ &RPHWVHFWLRQDODQWHQQDV
XVH $%6 7UDQVSDUHQW
WR 5)  FRQQHFWLQJ MRLQWV
IRU WKH ÀQHVW SDWWHUQ DQG
HDVLHVWDVVHPEO\

6%%

)RUWKH8+9RSWLRQDOEDQGV
VRPHORQJHUDQWHQQDVUHTXLUHDGGLWLRQDOIUHLJKW
0HWHU$QWHQQD

%
6%%

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


'83/(;(56
PDQG+7$QWHQQDV 'XDOP0+]
PFP
0RELOH$QWHQQD
1RZZLWK
102&RQQHFWRU
&$[65102
&RPHWҋV SRSXODU &$[65 EURDG
EDQG PRELOH DQWHQQD QRZ LV DYDLODEOH
ZLWK DQ 102 FRQQHFWRU %ODFN DQRG
L]HGÀQLVKG%LJDLQ
+523ULFH

)OH[LEOH
'XDO%DQG
6%%
&RQYHQLHQWYHU\ÁH[LEOHP
FPDQWHQQD&RPHVZLWKHLWKHUD
JROGSODWHG3/ 0RGHO6%% RU
102FRQQHFWRU 0RGHO6%%102 
&RPHW+LJK3RZHU'XSOH[HUVDQG7ULSOH[HUV
=LQFDOOR\GLHFDVWWZLQFDYLW\ORZLQSXWORVVKLJKLVRODWLRQDQGKLJKSRZHU0RGHUQL]H\RXUVWDWLRQZLWK *DLQ
&RPHWKLJKSHUIRUPDQFHDQWHQQDSURGXFWV  0+] G%L ZDYH
 0+] G%LZDYH
0D[3RZHU :DWWV
96:5 RUOHVV
+523ULFH 

'XDO%DQG
0DJ0RXQW$QWHQQD
0
(FRQRPLFDOEODFNDQRGL]HGP
FPDQWHQQDLVWDOODQG
FRPHV ZLWK  IHHW RI 5*8
FRD[ DQG HLWKHU D JROGSODWHG
3/ 0RGHO 00  RU %1&
FRQQHFWRU 0RGHO 0%  RU
PRGHO06 60$ VROGHUHGRQ

*DLQ0+]
  G%LZDYH
*DLQ0+]
  G%LZDYH
0D[3RZHU :DWWV
96:5 RUOHVV
,PSHGDQFH 2KP
+523ULFH

00

'XSOH[HU
$OO)HPDOH
'XSOH[HU
&)1
  
 0+] GX
SOH[HUZLWKWKUHH
1IHPDOH FRQQHF
WRUVDOORZVWKHXVHUWRDWWDFKWKHLURZQ
ORZORVVMXPSHUVLQWKHOHQJWKQHHGHG
7RUXQPXOWLSOHDQWHQQDVZLWKWKH<DHVX)7 +523ULFH

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


+)$17(11$6
+)$QWHQQDV
0RXQWV
:LQGRZ*DS
-XPSHU &7&0
7KLVGHYLFHFURVV HVWKHVSDFHEHWZHHQ
ZLQGRZIUDPHV7KHIUHTXHQF\UDQJH
LVXSWR*+]ZLWK62
FRQQHFWRUV0D[SZU+) +)5RWDWDEOH'LSROH
9HKLFOH6SHFLÀF  : 3(3 9+)  : &+9;
8+):ORZORVVRKP 7KH&+9;LVDEDQGURWDWDEOHGLSROHFRYHU
$QWHQQD%UDFNHWV LPSHGDQFH+523ULFH LQJPHWHUV
7KHVHVWDLQOHVVVWHHOQRKROHVWRGULOOPRXQWV
‡ (DFKEDQGLVLQGHSHQGHQW\WXQDEOH
XVHDQH[LVWLQJIHQGHUEROWXQGHUWKHKRRG$ 'HWDFKDEOH
'0
IHHWORZORVVFRD[ ‡ 7XUQLQJUDGLXVIHHW:HLJKVOER]
LQFK KROH DFFHSWV D VWDQGDUG 102 W\SH &RQQHFWRU
‡ 96:5OHVVWKDQDWFHQWHUIUHTXHQF\
FRQQHFWRURUXVH&RPHW8+)FRQQHFWRUPRELOH
‡ ,PSHGDQFHRKPV6WDLQOHVVKDUGZDUH
FDEOH DVVHPEOLHV 6SHFLÀF PRXQWV IRU PRVW IHHWORZORVVFRD[
‡ &%/N:EDOXQLQFOXGHG
SRSXODU WUXFNV DQG 689V &KHYUROHW )RUG
5*SURYLGHVHDV\HQWU\LQWRWKH ‡ 0D[SRZHU:DWWV66%P
'RGJH*0&&DOO+52IRUFRPSDWLELOLW\3LF
YHKLFOHIURPDQH[WHULRUPRXQW  :DWWV66%P
WXUHG'*$173)'RGJH5DP
IHHWYHU\ORZORVVFRD[ ‡ 62FRQQHFWRU5HTXLUHVPDVW
+523ULFH
LQFKHV
8QLYHUVDO0RXQW LQFKHV 'HWDFKDEOH
+523ULFH
&30&3102 5* &.0&.1&RQQHFWRU
P
7KHVH XQLYHUVDO PRXQWV
XVHWKHKHDY\GXW\56 5RRI5DFN0RXQW 5RWDWDEOH'LSROH
OLSEUDFNHW(DFKLQFOXGHV 568 +
PHWHUV 
 RIGHOX[H 7KLV QHZ URRI 7KLVEURDGEDQGFRPSDFWURWDWDEOHGLSROHRI
VWHSFRD[DQGDQDQWHQQD UDFNPRXQWRSHQV IHUVH[FHOOHQWSHUIRUPDQFHHYHQZKHQPRXQW
PRXQWFRQQHFWRUJROGSODWHG3/ ZLGHUWKDQWKHROG HGRQO\IWDERYHJURXQGLQD9VKDSH
RQFRD[HQGZLWKGHWDFKDEOHEDUUHOIRU YHUVLRQ²XSWR +HDY\ GXW\ KDUGZDUH DQG  N: EDOXQ DUH
HDV\LQVWDOODWLRQLQFKOHDGRIPLQL5* LQFKHV²DQGVXS LQFOXGHG 'XULQJ DVVHPEO\ WKH XVHU FKRRVHV
FRD[IRUHDV\HQWU\WKURXJKWKHZHDWKHUVHDO SRUWV ELJJHU DQ DQ\ RI WKH WKUHH SUHGULOOHG KROHV WR WXQH WKH
&KRRVHWKHPRGHOWKDWKDVWKHFRQQHFWRUIRU WHQQDV P6:5GLSVWRWKHORZPLGRU
WKHDQWHQQD\RXDUHXVLQJ+523ULFH +523ULFH XSSHUEDQG UDQJHV VLPXOWDQHRXVO\  P 7;
EDQGZLGWK WXQHV LQGHSHQGHQWO\ RI WKH RWKHU
&RPHW0RELOH0RXQWLQJ6\VWHPV WKUHHEDQGV
&RPHWKDVDZLGHYDULHW\RIPRELOHPRXQWV&KRRVHWKHPRXQWDQGFRD[FDEOHDVVHPEO\WKDWEHVW ‡/HQJWK´9µVKDSHҋµ+RUL]RQWDOҋµ
ÀWV\RXUSHUVRQDOQHHGV$OO&RPHWFDEOHVKDYHGHWDFKDEOHFRQQHFWRUV ‡ 96:5OHVVWKDQRUOHVVDIWHUWXQLQJ
‡ ,PSHGDQFHRKPV6WDLQOHVVKDUGZDUH
‡ :LQG/RDGVTIHHW
‡ 0D[3RZHU:66%:)0
‡ 62FRQQHFWRU
+523ULFH

PFP0RELOH$QWHQQD
8+9
:LWKRXW +) FRLOV DWWDFKHG WKH 8+9 LV
DWULEDQGHUIRUPPFP7KHWRS
RIWKHHOHPHQWKDVDWKUHDGHGVRFNHWIRU
WKHPPRUPFRLOV LQFOXGHG 
PDNLQJWKH8+9DTXDGEDQGDQWHQQD
‡ 2SWLRQDOFRLOVIRUPPP
‡ (DV\WRPRXQWDQGFRQÀJXUH
‡ )ROGRYHUKLQJHLQFOXGHG
‡ *$,1RQPG%L
 FPG%L
‡ /HQJWKµWRDSSUR[µPD[LPXP
+523ULFH

4XDG%DQGPFP
8+9²²²²²!
'HYHORSHGIRUWKH<DHVX)77KHP
DQGPEDQGVWXQHLQGHSHQGHQWO\DQGZLOO
WXQHIRU66%DQG)0/HQJWKDSSUR[µ
+523ULFH

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


$17(11$$&&(6625,(6
:LQGRZ)HHGWKURXJK
7HOHVFRSLF0DVWV
7KHVHSRUWDEOHWHPSRUDU\WHOH
VFRSLF ÀEHUJODVV PDVWV H[WHQG
WR WKH VN\ -XVW SXOO RXW HDFK
VHFWLRQDQGWZLVWWRORFN6HOHFW
IURPÀYHPRGHOVWRIHHW
:HDWKHUSURRI DQWHQQD IHHGWKURXJK SDQHOV 0)-
PRXQW LQ \RXU ZLQGRZ VLOO WR OHW \RX EULQJ DOO +DVVL[KLJKTXDOLW\7HÁRQŠ62FRQQHF
(DFK PDVW FROODSVHV WR DQ DF
\RXUDQWHQQDFRQQHFWLRQVLQWR\RXUKDPVKDFN WRUV IRU +)  9+)  8+) FRD[IHG DQWHQQDV
FHSWDEOHKHLJKWIRUWUXHSRUWDELO
ZLWKRXW GULOOLQJ KROHV WKURXJK ZDOOV 6LPSO\ DQGDVWDLQOHVVVWHHOJURXQGSRVW+DQGOHVIXOO
LW\
SODFHLQZLQGRZVLOODQGFORVHZLQGRZ :DWWOHJDOOLPLW
7KHVH KLJKVWUHQJWK ÀEHUJODVV
2QH FXW FXVWRPL]HV LW IRU DQ\ ZLQGRZ XS WR 0)-1
PDVWV DUH VXSHU OLJKWZHLJKW ²
LQFKHV8VHKRUL]RQWDOO\RUYHUWLFDOO\5HDO /LNH0)-EXWKDV1W\SHFRQQHFWRUV
WKH ODUJHVW ZHLJKV MXVW  OEV
:HVWHUQ 5HG &HGDU ZRRG LV QDWXUDOO\ UHVLV
7ZLVW DQG /RFN VHFWLRQV DOORZ
WDQW WR URW GHFD\ DQG LQVHFWV ² ODVWV ORQJHU 0)-
TXLFN SXOOXS DQG WDNHGRZQ
PDLQWHQDQFHIUHH 3LWFK DQG UHVLQ IUHH IRU +DV IRXU VHWV RI FHUDPLF IHHGWKURXJK LQVXOD
8VHWKHPZKLOHWUDYHOLQJFDPS
D ZLGH UDQJH RI EHDXWLIXO ÀQLVKHV RU OHDYH WRUVDQGWZR62FRQQHFWRUV
LQJ ² DW KRWHOV KDPIHVWV ÀHOG
LW LQ LWV QDWXUDOO\ EHDXWLIXO UDZ ÀQLVK (GJHV
GD\';SHGLWLRQV
DUH VHDOHG E\ ZHDWKHUVWULSSLQJ WR LQVXODWH 0)-
DJDLQVWDOOZHDWKHUFRQGLWLRQV +DV ÀYH DGDSWLYH FDEOH IHHGWKUXVŒ ² WZR
0)- IRU FRQQHFWRUV XS WR  [  LQFKHV
7KH ODUJHVW PDVW FDQ EH XVHG $OODUH'[+[:LQFKHVH[FHSW DQGWKUHHIRU8+)1VL]HFRD[FRQQHFWRUV
IRU D IXOOWLPH SHUPDQHQW ZLUH IRU 0)- ZKLFK LV  ' [  + [  : $GDSWVWRYLUWXDOO\DOOFDEOHVXVHGLQKDPUD
LQVWDOODWLRQRUVPDOOOLJKWZHLJKW ,QVLGHRXWVLGHVWDLQOHVVVWHHOSODWHVERQGDOO GLR6HDOVRXWZHDWKHU
EHDP RU YHUWLFDO 3XW XS D IXOO FRD[ VKLHOGV WRJHWKHU WR JURXQG FRQQHFWLRQ
VL]H LQYHUWHG 9HH GLSROH RU 6WDLQOHVV VWHHO JURXQG SRVW EULQJV RXWVLGH 0)-
YHUWLFDODQWHQQDLQPLQXWHVDQG JURXQGFRQQHFWLRQLQVLGH &RPELQHV 0)- DQG 0)-  *LYHV
JHWWKHKHLJKW\RXQHHGWR462 HYHU\ FRQQHFWLRQ \RXҋOO HYHU QHHG DQG PRUH
ZLWK DQ\RQH DQ\ZKHUH 8VH 0)- ZLWKRXWGULOOLQJKROHVLQZDOO
PXOWLSOH WHOHVFRSLF PDVWV WR 7KUHH 62 7HÁRQŠ FRD[ FRQQHFWRUV OHW
FRQVWUXFW RWKHU W\SHV RI DQWHQ \RXIHHG+)9+)8+)DQWHQQDV+LJKYROW
QDVOLNHORRSVTXDGVURWDWDEOH DJH FHUDPLF IHHGWKUX LQVXODWRUV EULQJ   $QWHQQD,QVXODWRUV
GLSROHVHYHQEHDPV7KHLGHDV 2KPEDODQFHGOLQHVLQWR\RXUKDPVKDFN
DUHHQGOHVV &HUDPLF IHHGWKUX LQVXODWRU IRU ORQJZLUH RU 0)-&
UDQGRPZLUH6WDLQOHVVVWHHOJURXQGSRVW SDFN RI JOD]HG FHUDPLF FHQWHU 
0)-IWOLJKWGXW\ZWRSWLHULQJ
HQG LQVXODWRUV DUH H[WUD VWURQJ ²
0)-IWOLJKWGXW\ZWRSWLHULQJ
0)-IWOLJKWZHLJKWZWRSWLHULQJ
0)- ZLOO QRW EUHDN ZLWK ORQJ DQWHQQDV
)RXU  2KP 7HÁRQŠ 62 FRD[ FRQQHF DQGZLOOQRWDUFRYHURUPHOWHYHQ
0)-IWIRUKHDY\GXW\XVH
WRUVOHW\RXIHHG+)9+)8+)DQWHQQDVDW XQGHUIXOOOHJDOSRZHU0ROGHGULGJ
0)-IWIRUKHDY\GXW\XVH
IXOOOHJDOSRZHUOLPLW HVJLYHH[WUDORQJSDWKWRSUHYHQW
0)-IWKHDY\GXW\ZWRSWLHULQJ
KLJKYROWDJH EUHDNGRZQ 6PRRWK
$2KP7HÁRQ 5 FRD[1FRQQHFWRUOHWV\RX
µZLUHKROHVSUHYHQWZLUHGDP
XVHDQ\DQWHQQDXSWR*+]LQFOXGLQJ
'XSOH[HUV7ULSOH[HUV 0+] 8+) VDWHOOLWH PRRQ ERXQFH DQG  
DJH&HQWHURUHQGLQVXODWRUIRUGL
SROHVGRXEOHWV*59VJX\ZLUHVYHHVHWF
*+]:L)LDQWHQQDV
0)-% $2KP*+])FRQQHFWRUPDNHVLWHDV\ 0)-$
8VH+)RUPHWHU WR EULQJ LQ WHOHYLVLRQ VDWHOOLWH +' FDEOH 79 *OD]HG FHUDPLF HJJ LQ
  0+] DQWHQ DQG)0UDGLRVLJQDOV VXODWRUKDVµKROHV
QDV ZLWK VHSDUDWH µGLDPHWHUE\µ
$SDLURIKLJKYROWDJHFHUDPLFIHHGWKUXLQVXOD OHQJWK+LJKSRZHU
+)RUPHWHU
WRUVOHWV\RXEULQJLQ2KPEDODQFHG
0+] ULJV ZLWKRXW D
OLQHVGLUHFWO\WR\RXUDQWHQQDWXQHU
EXLOWLQ GXSOH[HU
/RZORVV62V ‡ $ UDQGRP  ORQJZLUH DQWHQQD FHUDPLF +)0DJQHW0RXQWV
2KPSRUWV IHHGWKUXLQVXODWRU
:DWWV3(3 ‡ ZD\ELQGLQJSRVWVOHW\RXVXSSO\YROWV 0)-%7
  DPSV '& $& SRZHU WR \RXU RXWVLGH µPDJQHW
0)-%1ZLWK1W\SHFRQQHFWRU
DQWHQQDWXQHUVUHOD\VVZLWFKHV PRXQWZLWK
0)-%&ZLWKFRD[SLJWDLOVWHUPLQDWHGZLWK ‡ 6WDLQOHVVJURXQGSRVWEULQJVLQJURXQGFRQ ҋFRD[
3/FRQQHFWRUV QHFWLRQ ERQGV LQVLGH  RXWVLGH VWDLQOHVV
VWHHOSDQHOVWRJHWKHUDQGGUDLQVDZD\VWDWLF
0)-67ULSOH[HUIRUDQG
FKDUJHV 0)-7
0+]62FRQQHFWRUV
‡ 0)-ҋVH[FOXVLYH$GDSWLYH&DEOH)HHGWKUXŒ
0)-&7ULSOH[HUIRU OHWV \RX EULQJ LQ URWDWRU  DQWHQQD VZLWFK
FDEOHHWFZLWKRXWUHPRYLQJFRQQHFWRUV XS 7ULPDJQHW
DQG0+]3LJWDLO3/FRQQHFWRUV +)PRXQW
WR;LQFKHV $GDSWVWRYLUWXDOO\
0)-6 7ULSOH[HU IRU   DQ\ FDEOH VL]H 6HDOV RXW UDLQ VQRZ DG ZLWKҋFRD[
DQG0+]62FRQQHFWRUV YHUVHZHDWKHU

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


527$7256

2FWRSXV$QWHQQD +\JDLQURWDWRUVDUHWKHÀUVWFKRLFHRIKDPVDURXQGWKH
ZRUOG2QHLVSHUIHFWIRU\RXUDQWHQQDFRQÀJXUDWLRQ

+DP9 7DLOWZLVWHU
)RUPHGLXPDQWHQQDDUUD\V
XSWRVTXDUHIHHWZLQG 6HULHV,,
ORDG,QFOXGHVWKH'&8 7KLVXQLWKDQGOHVPHGLXP
3DWKÀQGHU GLJLWDO FRQWURO FRPPXQLFDWLRQV DUUD\V
XQLW 1R PRUH WHUPLQDO XSWRVTXDUHIHHWZLQG
VWULSV )HDWXUHV FLQFK ORDG DUHD $YDLODEOH
FRQQHFWRUSOXVSLQSOXJ ZLWKWKH'&83DWK
DWWKHFRQWUROER[0D[L ÀQGHU GLJLWDO
PXPPDVWVL]Hµ F R Q W U R O
+523ULFH E R [  R U
VWDQGDUG
D Q D O R J
2FWRSXV F R Q W U R O
E R [   + D V
%DQG$QWHQQD EDOOEHDULQJV
IRU ODUJH ORDG EHDULQJ
5HDFKRXWIRUELJ'; VWUHQJWK0D[LPXPPDVWVL]Hµ
&KRRVH \RXU IDYRULWH IRXU EDQGV 6XSHU HDV\ WR DV +523ULFHV7;7;'
VHPEOH8VHPHWDOSROHRUWHOHVFRSLFPDVWXSWRLQFK
HDVLO\VHFXUHGWLJKWHQVZLWKWKXPEVFUHZ$QGMXVW $5
VFUHZLQ\RXU+DP6WLFNVΠ6HHSDJH (VSHFLDOO\ IRU ODUJH
+DP,9 )079 DQG FRPSDFW
5RWDWHZLWKDVPDOO79URWDWRU VHH+\*DLQ$5, 7KH SRSXODU +DP,9 LV
FRPPXQLFDWLRQ DQ
 RUMXVWJURXQGPRXQWIRURPQLGLUHFWLRQDO GHVLJQHG IRU PHGLXP
WHQQD DUUD\V XS WR
DQWHQQDDUUD\VXSWR
 VTXDUH IHHW ZLQG
8VHV HLJKW +DPVWLFNVΠWZR RI WKH VDPH IRU VTXDUHIHHW,WIHDWXUHV
ORDG DUHD 'XDO 
HDFK EDQG  7RXJK RFWDJRQDO HQFORVXUH KDV DGXDOEDOOEHDULQJ
EDOO EHDULQJ UDFH
HLJKWWKUHDGHGFRQQHFWRUVIRU+DPVWLFNV UDFH IRU ORDG EHDU
$XWRPDWLF SRVLWLRQ
LQJ VWUHQJWKV DQG
VHQVRUQHYHUQHHGV
+DVEXLOWLQEDOXQDQGDVXSHUVWURQJEDVHWXEH DQ HOHFWULF ORFNLQJ
UHVHWWLQJ0D[LPXP
LQVXODWRUPDGHRIÀEHUJODVVÀOOHG$%6 VWHHOZHGJHEUDNH
PDVW VL]H  µ
0D[LPXP PDVW
,QFOXGHV 06/'
3XWWKLVDQWHQQD XSLQPLQXWHV0DNHVIRUD VL]H  µ
O L J K W  G X W \
JUHDWVWHDOWKSRUWDEOHFDPSJURXQGRUSHUPD +523ULFH
ORZHU PDVW
QHQWEDVHDQWHQQD6XSHUOLJKWZHLJKWIRRW 
V X S S R U W 
GLDPHWHU +DPVWLFNVΠEUHDN GRZQ WR  DERXW +52 3ULFH
IRXUIHHWIRUHDV\VWRUDJH 

+523ULFHV
0)-
0RXQWLQJEUDFNHWRQO\ +'5$
&KRRVH WKLV URWDWRU IRU
0)- NLQJVL]HGDQWHQQDDUUD\V
0RXQWLQJEUDFNHWZLWK\RXUFKRLFHRIIRXU WZR XS WR  VTXDUH IHHW RI
&',,
HDFK :+DPVWLFNVΠ7KH &',, KDQGOHV
ZLQG ORDG +HDY\GXW\ XSWRVTXDUHIHHW
VHOIFHQWHULQJVWHHOPDVW RIDQWHQQDZLQGORDG
0)-+ FODPS DQG KDUGZDUH
0RXQWLQJEUDFNHWZLWK\RXUFKRLFHRIIRXU WZR ZKHQ PRXQWHG LQ
'LJLWDO GLVSOD\ DFFX VLGH WKH WRZHU RU
HDFK KLJKSRZHU:+DP6WLFNVΠUDWH WR  GHJUHH VTXDUHIHHWZLWK
+523ULFH WKHLQFOXGHG06/'
 OLJKW GXW\ ORZHU
PDVWDGDSWHU+DV
)UHH*URXQG6KLSSLQJ EDOOEHDULQJUDFH
RQ0RVW2UGHUV 0D[LPXP PDVW VL]H
 µ +52 3ULFH
2YHU 

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


$=,087+ (/(9$7,21
6XSHUKHDY\GXW\5RWDWRUV6XSHUVWURQJGRXEOHZRUPJHDUGULYHVVHOIEUDNLQJ
H[WUHPHO\TXLHWPRWRUVRQHGHJUHHSRVLWLRQUHVROXWLRQ
DXWRPDWLFGLJLWDOFRQWUROOHU8SWRVTXDUHIHHWZLQGORDG
LQFKHVSHUSRXQGWXUQLQJWRUTXHLQFKHVSHUSRXQGEUDNHWRUTXH
SRXQGVYHUWLFDOORDG

+\*DLQ5$6

+\*DLQ
5($/

(OHYDWLRQ5RWDWRU
5($/
(OHYDWLRQURWDWRUKDVDOOVSHFLÀFDWLRQVRIWKHSRSX
ODU5$.EXWLVIRUPRYLQJDQWHQQDVGHJUHHV
XSRUGRZQ3DFNDJHLQFOXGHV5$.,&8FRQWUROOHU

+\*DLQ5$6 5($/LQFOXGLQJFRQWUROOHU
+523ULFH
5($/5URWDWRURQO\+523ULFH

$]LPXWK(OHYDWLRQ5RWDWRUV
5$6 5$6
+\JDLQRIIHUV5$6DQG%,*5$6 5$6 VXSHUKHDY\GXW\D]LPXWKHOHYDWLRQURWDWRUV
6DPHKHDY\GXW\GHVLJQDV5$.VDQGLQFOXGHVWKH5$6&GLJLWDOFRQWUROOHU

5$6KDVVDPHVSHFLÀFDWLRQVDV5$6EHORZEXWZLWKWKHVHVXSHUVSHFV7XUQLQJSRZ +\*DLQ
HULQFKHVSHUSRXQGDWDOOYROWDJHV9HUWLFDOORDGJUHDWHUWKDQSRXQGV5$6 5$8
ZHLJKVSRXQGV

5$6LQFOXGLQJ5$6&8FRQWUROOHU+523ULFH
5$65URWDWRURQO\+523ULFH
5$6LQFOXGLQJ5$6&8FRQWUROOHU+523ULFH
5$65URWDWRURQO\+523ULFH

+\*DLQ5$66SHFLÀFDWLRQV
(FRQR6SLG5RWDWRU
5$8
6SLGҋV VPDOOHVW URWDWRU LV D VWHS XS IURP PDLQ
VWUHDPURWDWRUVDQGSURYLGHVH[FHOOHQWVXSSRUWIRU
GLUHFWURXQGPDVWPRXQWLQJ,QFRUSRUDWHVHOHYDWLRQ
URWDRUWRSURYLGHIXOO$=(/FDSDELOLW\,GHDOIRUOLJKW
GXW\  HOHPHQW DQWHQQDV VKRUW ERRP PHWHU
EHDPVDQG0HWHUFPEHDPDQWHQQDV

5$8LQFOXGLQJ5$.,&8FRQWUROOHU
+523ULFH
5$85URWDWRURQO\+523ULFH

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


63,'527$7256
5RWDWRU&RQWUROOHUV +\*DLQ +\*DLQ
5$. 5$.
'&8
IRU+\*DLQ
'LJLWDO URWDWRU FRQ
WUROOHU DOORZV \RX
WR SURJUDP  EHDP
KHDGLQJV*LYHVIXOO\DXWRPDWLFRUPDQXDOFRQWURORI\RXU
+\*DLQ+DPRU7;5RWDWRUV+DV86%56SRUWV
IRU FRPSXWHU FRQWURO $GMXVWDEOH /&' VOHHS WLPH )LHOG
XSJUDGHDEOH ÀUPZDUH 3UHVV D PHPRU\ EXWWRQ RU GLDO
LQ\RXUEHDPKHDGLQJRUOHWRQHRIWKHSRSXODUVRIWZDUH 5$. 5$.  5$. %,*5$. 
SODWIRUPVWDNHFRQWUROIRU\RX%ULJKWEOXH/&'$YDLODEOH 7KHVH VXSHU KHDY\GXW\ 5$. URWDWRUV ,WҋVVLPSOHWRPRXQW3LSHPDVWPRXQW
IRU9$&RU'&8;IRU9$&+523ULFH DUHGHVLJQHGZLWKDVLPSOHGRXEOHZRUP RQ ERWK HQGV DOORZV FRD[ FDEOHV WR
'&8FRQWUROOHUZLWKIHZHUSURJUDPPDEOHPHPRULHV JHDUGULYH7KLVUHVXOWVLQDVXSHUVWURQJ SDVV WKURXJK WKH FHQWHU RI WKH URWDWRU
XOWUDUHOLDEOHURWDWRUV\VWHPZLWKLQKHUHQW DQGSUHYHQWVFDEOHWDQJOLQJDQGGDP
<5& VHOIEUDNLQJ (DFK LQFOXGHV D SUHFLVLRQ DJH 2SWLRQDO DGDSWRU SODWH PRXQWLQJ
DXWRPDWLFGLJLWDOFRQWUROOHU 6HHDFFHVVRULHVVHFWLRQEHORZ
IRU<DHVX
5HSODFH \RXU <DHVX 7XUQLQJLVSRZHUIXOVPRRWKSUHFLVHDQG ,WҋVSUHFLVH7KHLQFOXGHG5$.,&FRQ
URWDWRUFRQWUROER[ZLWK H[WUHPHO\TXLHW7KHLQKHUHQWVHOIEUDNLQJ WUROOHUKDVRQHGHJUHHUHVROXWLRQDQGD
WKH<5&URWDWRUFRQ DFWLRQRILWVGRXEOHZRUPJHDUGULYHSRVL ODUJHLQFKGLJLWHDV\WRUHDGVRIW
WUROOHU(DV\WRXVHGLDO WLYHO\VWRSVLWHYHU\WLPH²LWZRQҋWPRYH JUHHQ/('GLJLWDOUHDGRXW6HDOHGUHHG
LQ \RXU EHDP KHDGLQJ VZLWFKVHQVRUWHFKQRORJ\JLYHVUHOLDEOH
DQG WDS WKH *272 EXWWRQ %ULJKW EOXH /&' VKRZV FXU ,WҋVIDVW$KLJKWRUTXH'&JHDUPRWRUUR DOOZHDWKHU RSHUDWLRQ DQG VXSHU WLJKW
UHQWGLDOHGLQDQGFRPSXWHUFRQWUROOHGEHDPKHDGLQJV WDWHV\RXUDQWHQQDGHJUHHVLQMXVW WROHUDQFHVZLWKPLQLPDOSOD\
DQG \RXU FDOO VLJQ 86% SRUW IRU FRPSXWHU FRQWURO )DVW VHFRQGV ZLWKYROWVRQWKHPRWRU7KH
YDULDEOH'&PRWRUPLQLPL]HVRYHUVKRRW)RUFXUUHQW<DH 5$.URWDWRUVRSHUDWHIURPWRYROWV 7RXJK DQG GXUDEOH +HDY\GXW\ FRQ
VX²';$VHULHVURWDWRUV+523ULFH $& RU '& 7KH KLJKHU WKH YROWDJH WKH VWUXFWLRQ ZLWK µ WKLFNZDOO VWHHO
KLJKHUWKHWRUTXHDQGWKHIDVWHUWKHWXUQ SLSHXOWUDGXUDEOHVWHHOKRXVLQJ
<5&LVOLNHWKH<5&EXWDGGVPHPRULHV LQJVSHHG²XQLTXH5$.IHDWXUH
5$.LQFOXGLQJ5$.,&8FRQWUROOHU
(FRQRP\'LJLWDO&RQWUROOHU 5$.LQFOXGLQJ5$.,&8FRQWUROOHU +523ULFH
+523ULFH 5$.5 URWDWRU RQO\ +52 3ULFH
IRU+\JDLQ+DP,,,97;<DHVXDQG 5$.5URWDWRURQO\+523ULFH 
PDQ\RWKHUFRPPRQURWDWRUV
+\*DLQ5$.6SHFLÀFDWLRQV
+\*DLQ
0'65&

7KH 5& LV D GLUHFW UH


SODFHPHQW FRQWURO ER[
IRUDOPRVWDOOYHUVLRQVRI<DHVXURWDWRUV*HW$//WKHVH
IHDWXUHVDWKDOIWKHFRVWRIVLPLODUGLJLWDOFRQWUROOHUV
‡ ,WLVSULFHGZHOOEHORZWKHUHSDLUFRVWRIPDQ\IDFWRU\
FRQWUROER[HV
‡ 5&XVHVVODYHSRZHUIURPH[LVWLQJ+DPVHULHV$&
FRQWUROOHUV 5&*5&+ ,WLVHPHUJHQF\DQGEDW
WHU\SRZHUFRPSDWLEOHIRU'&PRGHOV +\*DLQ5$.6SHFLÀFDWLRQV
‡ <RXJHWDXWRPDWLFEUDNHFRQWURORQ+DPVHULHVURWDWRUV
DQGDXWRPDWLFVSHHGFRQWURORQ'&SRZHUHGURWDWRUV
‡ $JUDSKLF/&'VFUHHQLVODUJHDQGEULJKWEOXHIRUHDV\
YLVLELOLW\+XJHEHDPKHDGLQJGLJLWV
‡ 7KH´*RWRµEXWWRQJLYHV\RXWKHUHFLSURFDOKHDGLQJ
‡ &RPSXWHUFRQWUROOHG RSHUDWLRQ YLD WKH LQFOXGHG 86%
IRU 5&<  RU VHULDO SRUWV OHW \RX XVH \RXU IDYRULWH
VRIWZDUHSURJUDPV)LHOGXSJUDGHDEOHÀUPZDUH
‡ 5XJJHGDOXPLQXPIRUPD[LPXP5)VKLHOGLQJLVDFRP
SDFWZLGH[KHLJKW[LQFKHVGHHS
‡ 2UGHU 5&< IRU <DHVX 5&( IRU (PRWDWRU 5&3
IRU6SLG5&*DQG5&+IRU+\JDLQURWDWRUV
5&+523ULFH

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


527$7256$17(11$6
<DHVX
V KLJK TXDOLW\ URWDWRUV +)'LSROH$QWHQQD
IRUDPDWHXUVLQFOXGHPRGHOVIRU
PHGLXP WR ODUJH DUUD\V DQG IRU <$
VDWHOOLWH ZRUN 7KHUH DUH DOVR 7KLV IRRW EURDGEDQG GLSROH
*';$ SURYLVLRQVIRUFRPSXWHUFRQWURO SURYLGHV RSWLPXP SHUIRUPDQFH
7KH *';$ LV D KLJK RYHU0+]8VXDOUHTXLUH
WHFKQRORJ\URWDWRUGHVLJQHG &RQWDFW \RXU QHDUHVW +52 IRU PHQWV IRU DQ DQWHQQD WXQHU
WR WXUQ WKH ODUJHVW WRZHU PRUHVSHFLÀFDWLRQVDQGGLVFRXQW EHWZHHQ WKH ULJ DQG DQWHQQD
PRXQWHGDQWHQQDDUUD\V SULFHVRQ<DHVXSURGXFWV DUH HOLPLQDWHG E\ WKH XQLTXH
EURDGEDQGGHVLJQ+DQGOHV
:DWWVDWDQ6:5RIOHVVWKDQ
*';$ RQ WKH DPDWHXU EDQGV 3UHDV
7KH *';$ LV GHVLJQHG WR KDQGOH ELJJHU VHPEOHGDQGSUHWXQHG&DQEH
DUUD\VXSWRVTXDUHIHHW$JUHDWYDOXH LQVWDOOHGDVDKRUL]RQWDOÁDWWRS
LQYHUWHG9 RU VORSHU  IHHW
*$ RI5*;ZLWK3/LQFOXGHG
7KH*$LVLGHDOIRUVPDOOHU+)DQG9+)8+) +523ULFH&$//
DQWHQQDV)HDWXUHVGHJUHHUDGLDOFRPSDVV
GLVSOD\ZLWKRYHUODS
0RELOH$QWHQQD
*';$
7KH *';$ URWDWRU LV GHVLJQHG IRU PHGLXP WR +)9+)8+)
KHDY\ORDGVDQGDQWHQQDVXSWRVTXDUHIHHWZLWK $7$6$!
FRQWUROER[UHVHWV *
7KH $7$6$ SURYLGHV +) 
9+)8+)FRYHUDJHZLWKDXWR
PDWLFPRWRUL]HGWXQLQJ&RQWURO
+52
3ULFH UDGLDWRUOHQJWKIURPWKHWUDQVFHLY
&$// HUIRUEHVW6:5&RPSDWLEOHZLWK
<DHVX
V)7)7)7
DQG)7+523ULFH&$//

5RWDWRU &RPSXWHU &RQWUROOHU 3RUWDEOH$QWHQQD


*6%
7KH *6* URWDWRU FRPSXWHU LQWHUIDFH SURYLGHV +)9+)8+)
GLJLWDO FRQWURO RI <DHVX URWDWRUV *';$ * )LHOG$QWHQQD
';$*';$DQG* $7$6
7KLVLVWKHPRVWSRSXODUD]LPXWKDQGHOHYDWLRQ
7KH *6% FRQWDLQV LWV RZQ 3,&& PLFUR
URWDWRUIRUVDWHOOLWHPRRQERXQFHRURWKHUVSDFH 7KH $7$6 KDV UDGLDWLQJ HOHPHQWV
SURFHVVRUZLWK520DQG5$0DQGELWDQDORJWR
FRPPXQLFDWLRQVZRUN,WSURYLGHVKRUL]RQWDODQG FRYHULQJ DPDWHXU EDQGV  P 
GLJLWDOFRQYHUWHU7KHZLUHDV\QFVHULDOOLQHFDQEH
YHUWLFDO DQWHQQD URWDWLRQ LQ D VLQJOH XQLW 7KH PPDQGFP0RXQWVWRDVWDQ
FRQÀJXUHG IRU VHULDO GDWD UDWHV IURP  WR 
FRQWUROER[KDVWZRODUJHPHWHUVRQHVKRZLQJ GDUG FDPHUD WULSRG QRW LQFOXGHG 
EDXG7KHXQLWKDVD'%PDOHFRQQHFWRUWRFRQ
HOHYDWLRQ DQG WKH RWKHU D]LPXWK 0HWHU DLPLQJ 8VHV D PDQXDO WXQLQJ V\VWHP 'XDO
QHFWWRWKH56&&20SRUWRI\RXUFRPSXWHU
DFFXUDF\ LV ZLWKLQ “ 7KH * SURYLGHV IUHTXHQF\ RSHUDWLRQ SRVVLEOH ZLWK D
6XSSOLHGLWHPVLQFOXGHFRQWUROFDEOHIRUWKHD]LPXWK ƒHOHYDWLRQURWDWLRQZLWKDURWDWLRQWLPHRI GXSOH[HU QRW LQFOXGHG $QWHQQD FRO
URWDWRU LQWRPLQL',1 FRQWUROFDEOHIRUWKH$](O VHFRQGV$ƒD]LPXWKURWDWLRQWDNHVMXVW ODSVHV WR OHVV WKDQ WZR IHHW WR FDUU\
URWDWRU GXDO  SLQ WR ',1 FDEOH  '& SRZHU FDEOH VHFRQGV7KLVURWDWRUDFFHSWVXSWRDPDVWD H[SDQGVWRIRRWPD[LPXPKHLJKW
DQG KRRN DQG ORRS IDVWHQHUV7KLV GHYLFH UHTXLUHV PD[LPXPKRUL]RQWDOFURVVERRPDQG 7KLVLVDQLGHDOV\VWHPWRXVHZLWKWKH
9'&DWP$ SRXQGV RI YHUWLFDO ORDG &RPSXWHU FRQWUROODEOH )7 )7 DQG )7 WUDQV
ZLWKRSWLRQDO*6FRPSXWHULQWHUIDFH+52 FHLYHUV:HLJKWLVSRXQGV+52
3ULFH&$// 3ULFH&$//
<DHVX5RWDWRU6SHFLÀFDWLRQV

(OHYDWLRQIWOEV$]LPXWKIWOEV

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


78%8/$5&5$1.8372:(56
0$6HULHV&UDQN8S0DVWV
7KH SUHPLHU 0$VHULHV FUDQNXS 7XEXODU 7RZHUV DUH HPHUJHQF\KDQGURWDWLRQRIWKHHQWLUHWRZHUDQGDQWHQQD
GHVLJQHG WR EH ERWK VDIH DQG QHLJKERU IULHQGO\ 7KH
7KH0$0'3DQG0'3PRGHOVLQFOXGHDKHDY\
VOHQGHUGHVLJQJLYHVDFOHDQÁDJSROHOLNHDSSHDUDQFH
GXW\ PRWRU GULYH ZLWK SRVLWLYH SXOO GRZQ 7KH 0'3
DQGLVUDWHGDWPSKZLQGVSHUWKH,%&FRGH
PRGHOVSURYLGHPRWRUL]HGUDLVLQJDQGORZHULQJRIWKH
3HU 7,$(,$ VSHFLÀFDWLRQV DGHTXDWH VDIHW\ PDUJLQV
WRZHU$UHPRWHFRQWUROXQLW 50& DFFHVVRU\LV
DUHLQFOXGHG,QWHUQDWLRQDO%XLOGLQJ&RGHFDOFXODWLRQV
DYDLODEOH WKDW DOORZV UDLVLQJ DQG ORZHULQJ IURP \RXU
DUHDYDLODEOHIRUPRVWPRGHOV
KDPVKDFNRURWKHUUHPRWHORFDWLRQ
7KH0$DQGPRGHOVUHTXLUHEDVHNLWVFRPSULVHG
$OO PRGHOV ZLWKRXW PRWRU GULYHV FRPH VWDQGDUG ZLWK
RIDÁDWEDVHDQGWZRôµ[µDQFKRUEROWVEXWFRPH
PDQXDOKDQGZLQFKHVZKLFKKDYHORDGDFWXDWHGEUDNHV
VWDQGDUGZLWKDZDOOEUDFNHWDQGURWDWRUSODWHPRXQWHG
IRUPD[LPXPVDIHW\7KLVIHDWXUHSUHYHQWVWKHZLQFK
RQWRSRIWKHWRSVHFWLRQ1RJX\LQJLVUHTXLUHGZKHQ
IURPIUHHZKHHOLQJDQGFDXVLQJLQMXU\WR\RXRU\RXU
WRZHULVSURSHUO\EUDFNHWHGWRWKHHDYHRI\RXUURRI
LQVWDOODWLRQLQWKHHYHQWWKDW\RXORVH\RXUJULSGXULQJ
0$VHULHV WRZHUV DUH FRPSOHWHO\ VHOIVXSSRUWLQJ RQO\ UDLVLQJRUORZHULQJ
ZKHQXVHGZLWKDFFHVVRU\0$5%RU0$%VHULHVEDVHV
$OOVWHHOXVHGDW867RZHUFRQIRUPVWR$670VSHFLÀFD
7KH0$5%VHULHVURWDWRUEDVHDOORZVWKHHQWLUHWRZHU
WLRQV$OOZHOGLQJLVGRQHE\FHUWLÀHGIDFWRU\SHUVRQQHO
DQG DQWHQQD WR EH URWDWHG IURP WKH EDVH URWDWRU QRW
$OORIRXUWRZHUVDUHIDFWRU\WHVWHGE\WUDLQHGSHUVRQQHO
LQFOXGHG  7KLV DOORZV HDV\ URWDWRU PDLQWHQDQFH SOXV
EHIRUHOHDYLQJWKHSODQW

7KHVHWRZHUVUHTXLUHSXUFKDVHRI0&/RU50&

7006HULHV&RPSDFW7RZHUV
&UDQN8S7RZHU
7KH 700 VHULHV KDV D PLQLPXP UHWUDFWHG OLJKWZHLJKWWRZHUVVKRXOGSURYLGHPDQ\\HDUV
KHLJKWRIҋµ PD\YDU\GHSHQGLQJRQURWDWRU RIWURXEOHIUHHVHUYLFH$OORIRXUWRZHUVKDYH
%DVH,QIRUPDWLRQ
XVHG DQGDPD[LPXPKHLJKWRIҋLQFOXGLQJ DKRWGLSSHGJDOYDQL]HGÀQLVKLQVLGHDQGRXW )RXQGDWLRQVDUHGHVLJQHGLQDFFRUGDQFHZLWKWKH
PDVW$WWKHWRZHUҋVUHWUDFWHGKHLJKWYLVXDO ,QWHUQDWLRQDO %XLOGLQJ &RGH ,%&  IRU D ´QRQ FRQ
7KH70066DQG66KDYHDµWRS
LPSDFWLVUHGXFHGWRDPLQLPXPDQGDQWHQQD VWUDLQHGµFRQGLWLRQXVLQJ&ODVVVRLO$OWHUQDWHRU
VHFWLRQZKLFKZLOOSHUPLWWKHLQVWDOODWLRQRIWKH
VHUYLFLQJLVPDGHHDVLHU7\SLFDOO\WKHWRZHU FXVWRPIRXQGDWLRQGHVLJQVDUHDYDLODEOHIRUDQH[
<DHVX*DQG*URWDWRUVLQVLGHWKH
DQGDQWHQQDDUHEHORZWKHURRIOLQHRI\RXU WUDFKDUJH$QFKRUURGVPD\EHRUGHUHGIURP86
WRSVHFWLRQ2YHUVL]HGURWDWRUVZLOOSUHYHQW
KRPHZKHQWKHWRZHULVIXOO\UHWUDFWHG 7RZHU KRZHYHU  UHLQIRUFLQJ VWHHO DQG UHEDU DUH
IXOO UHWUDFWLRQ RI \RXU WRZHU KRZHYHU WKH\
7KH 700 VHULHV WRZHUV DUH OLJKWZHLJKW PD\EHXVHGLIIXOOUHWUDFWLRQLVQRWUHTXLUHG QRW SURYLGHG :HOGHUҋV FHUWLÀHG ,$: $:6 '
IUHHVWDQGLQJFUDQNXSWRZHUVWKDWDOORZXSWR &RQWDFW867RZHUIRUDGGLWLRQDOLQIRUPDWLRQ
$OO7006HULHVWRZHUVUHTXLUHEDVHNLWVFRP
VTXDUHIHHWRIDQWHQQDLQPSKZLQGV
SULVHGRIDKLQJHG7EDVHDQGDQFKRUEROWV %HFDXVHRIZLGHYDULDWLRQVWKURXJKRXWWKHFRXQWU\
SHU7,$(,$VSHFLÀFDWLRQV7KH700+'
EXWLQFOXGHORDGDFWXDWHGZLQFKURWDWRUSODWH LQ ]RQLQJ UHTXLUHPHQWV DQG ORDGLQJ FRQGLWLRQV
DOORZVVTXDUHIHHWLQPSKZLQGV7KHVH
DQGHLJKWIHHWRIµ2'[µDQWHQQDPDVW VQRZZLQGLFHHWF LWLVWKHUHVSRQVLELOLW\RIWKH
FXVWRPHUWRPDNHFHUWDLQWKDWKLV7RZHUFRQIRUPV
&203$&77006(5,(6&5$1.8372:(56 WRDOODSSOLFDEOHFRGHV:HUHFRPPHQG\RXREWDLQ
DOOQHFHVVDU\SHUPLWVSULRUWRSXUFKDVH

7KH&XVWRPHULV5HVSRQVLEOH
IRUREWDLQLQJDOOORFDOFLW\RUFRXQW\
EXLOGLQJDQGWRZHUSHUPLWV
$1'
IRUWDNLQJWKHWRZHURIIWKHIUHLJKWWUXFN
ZKHQLWLVGHOLYHUHG3OHDVHDUUDQJHIRU
DGHTXDWHKHOS

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


/$77,&(&5$1.8372:(56
7;6HULHV)UHHVWDQGLQJ7RZHUV
867RZHUҋV7;VHULHVFUDQNXSWRZHUVDUHDVVWURQJ 7KH7;VHULHVWRZHUVFRPHFRPSOHWHZLWKURWD
RU VWURQJHU WKDQ PRVW FRPSHWLWRUVҋ KHDY\GXW\ WRU SODWH DQG )XOWRQ KDQG ZLQFK H[FHSW 0'3
PRGHOV7KH7;WRZHUVKDYHIRRWVHFWLRQVZLWK DQG0'3/PRGHOVZKLFKIHDWXUHDXWRPDWLFORDG
IRRWRYHUODSWRSURYLGHH[WUDKHLJKWDQGVWUHQJWK DFWXDWHGEUDNHVIRUPD[LPXPVDIHW\%DVHNLWV
,QDGGLWLRQWKHRYHUODSKHOSVSUHYHQWELQGLQJZKLOH DUHUHTXLUHGFRQVLVWLQJRIODUJHVWHHODQFKRUEROWV
ORZHULQJ\RXUWRZHULQKLJKZLQGFRQGLWLRQV DQGKHDY\GXW\VWHHO7EDVHWKDWDOORZVWKHWRZHU
WRKLQJHRQIRUHDV\LQVWDOODWLRQ$OO7EDVHVZLOO
7KH 7; VHULHV WRZHUV KDYH D ODUJH HQRXJK WRS
DFFHSW WKH 75; VHULHV UDLVLQJ À[WXUHV IRU HDV\
VHFWLRQ  ҋҋ  WR SHUPLW LQVWDOODWLRQ RI PRVW
RQHPDQLQVWDOODWLRQ2WKHUDFFHVVRULHVLQFOXGH
URWDWRUVLQVLGHWKHVHFWLRQIRUPD[LPXPVWUHQJWK
PDVWVDQGPRWRUGULYHV7KH7;0'3FRPHV
ZKLOH DOORZLQJ WKH VHFWLRQ WR IXOO\ UHWUDFW &URVV
FRPSOHWHZLWK0'3PRWRUGULYHZLWKSRVLWLYH
EUDFLQJ DW FULWLFDO SRLQWV RQ WKH WRZHU HQVXUHV
SXOOGRZQIHDWXUH7KH7;0'3/LQFOXGHVWKH
VDIHW\DQGDGGLWLRQDOVWUHQJWK$OOFUDQNXSWRZHUV
0'3/PRWRUGULYHDQGOHYHOZLQGIHDWXUH
KDYHDKHDY\GXW\KRWGLSSHGJDOYDQL]HGÀQLVK
ERWKLQVLGHDQGRXWZKLFKVKRXOGSURYLGHPDQ\ 86 7RZHUҋV 7; VHULHV UHTXLUHV QR JX\LQJ 7KH
\HDUVRIWURXEOHIUHHVHUYLFH ZLQGORDGLQJLVFDOFXODWHGDWPSK

7;6(5,(6)5((67$1',1*&5$1.8372:(56

7KLVWRZHUUHTXLUHVSXUFKDVHRI0&/RU50&

+';6HULHV+HDY\'XW\

7;

+';
70066
86 7RZHUҋV +'; VHULHV KHDY\GXW\ FUDQNXS IHDWXUHV 7KH +';0'3/ FRPHV FRPSOHWH
WRZHUVKDYHXSWRWLPHVPRUHZLQGORDGLQJ ZLWKWKH0&/OLPLWVZLWFKSDFNDJHLQFOXGHG
FDSDFLW\WKDQRWKHUVFRPPRQO\DGYHUWLVHG7KLV $OOWRZHUVXVLQJ0'3DQG0'3/PRWRU
VXSHULRUVWUHQJWKDOORZVIRUODUJHVWDFNHGDUUD\V GULYHVPXVWXVHHLWKHUWKH50&DFFHVVRU\
ZKLOHXVLQJRXUFRPPHUFLDOW\SHEDVHVDQGDQFKRU OLPLWVZLWFKSDFNDJHRUWKH0&/ZKLFKDOORZV
EROWV WKDW FDQ EH HDVLO\ LQVWDOOHG DQG YHUWLFDOO\ WKH UDLVLQJ DQG ORZHULQJ RI \RXU WRZHU IURP WKH
DGMXVWHG$OO +'; VHULHV 7EDVHV DUH GHVLJQHG FRPIRUWRI\RXUKDPVKDFNRUDQ\UHPRWHORFDWLRQ
WRXVHRXU75;VHULHVUDLVLQJÀ[WXUHVWRPDNH
$OO+';VHULHVWRZHUVFRPHFRPSOHWHZLWKURWDWRU
LQVWDOODWLRQVDQGDQWHQQDVHUYLFLQJDRQHPDQMRE
SODWHEXWUHTXLUHEDVHNLWVFRQVLVWLQJRIDQFKRU
86 7RZHU FDUULHV PDQ\ GLIIHUHQW VL]HV DQG EROWVDQGKHDY\GXW\7EDVH867RZHUҋVVSHFLDO
VWUHQJWKV RI PDVWV WR XVH DV DFFHVVRULHV ZLWK 7EDVHGHVLJQDOORZVWKHWRZHUWRKLQJHIRUHDV\
WKH+';VHULHVWRZHUV7KH+';0'3/DQG LQVWDOODWLRQ867RZHUҋVFUDQNWRZHUVUHTXLUHQR
0'3/ PRWRUL]HG WRZHUV SURYLGH GXDO OHYHO JX\LQJ7KH+';6HULHVWRZHUVDUHUDWHGDW
ZLQGSRVLWLYHSXOOGRZQDQGKHDY\GXW\JHDUER[ PSKZLQGV

+';6(5,(6+($9<'87<&5$1.8372:(56
7KH IDFWRU\ UHVHUYHV WKH ULJKW WR PDNH
FKDQJHVRUPRGLÀFDWLRQVZLWKRXWQRWLFH

&DOO7ROO)UHHIRU
,QIRUPDWLRQDQG
'LVFRXQWV
RQ867RZHUVDQG
$FFHVVRULHV
7KHVHWRZHUVUHTXLUHSXUFKDVHRI0&/RU50&

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


&5$1.83$/80,1800$676
$/06(5,(6

7KH$/06HULHVLVDSDWHQWHGPDVW QHQWO\LQVWDOOHGPDVWDWWDFKHGWRDKRXVH
V\VWHPGHVLJQHGDQGPDQXIDFWXUHG DQRXWVWUXFWXUHRULQVWDOOHGIUHHVWDQGLQJ
E\867RZHU&RUS7KHLQWHQWRIWKH 1RJX\LQJLVUHTXLUHGIRUDQ\GHSOR\PHQW
$/06HULHVLVWRSURYLGHDYHUVDWLOH FRQÀJXUDWLRQRIWKHPDVW
DQGKLJKO\FDSDEOHPDVWV\VWHPWKDW
FDQEHTXLFNO\WUDQVLWLRQHGIRUGLIIHU :KHWKHUWKHLQWHQWLVWRXVHWKH$/06H
HQWXVHV ULHVDVDPRELOHVROXWLRQDÀ[HGVROXWLRQRU
ERWKWKHORZPDLQWHQDQFHKLJKVWUHQJWK
8VLQJ OLJKWZHLJKW DOXPLQXP FRQ ZHDWKHUUHVLVWDQWFRQVWUXFWLRQRIWKHPDVW
VWUXFWLRQ WKH $/0 6HULHV PDVWV HQVXUHV WKDW \RX ZLOO EH SUHSDUHG DW DOO
FDQEHHDVLO\ORDGHGLQWRDYHKLFOH WLPHV ZLWK DQ HDV\WRXVH FRVWHIIHFWLYH
WUDQVSRUWHG WR D ÀHOG HYHQW DQG VROXWLRQ
GHSOR\HG XVLQJ D QXPEHU RI PRELOH
PDVW PRXQW RSWLRQV LQFOXGLQJ KLWFK )RXUKHLJKWVDYDLODEOH
PRXQWVDQGGULYHRQEDVHV +HLJKW 5DWHG /RDG
IHHW OEV VTIHHW#PSK
:LWK LWV KLJK ZLQG UDWLQJ WKH $/0 IHHW OEV VTIHHW#PSK
6HULHVFDQDOVREHXVHGDVDSHUPD IHHW OEV VTIHHW#PSK
IHHW OEV VTIHHW#PSK

)HDWXUHV
‡ /LJKWZHLJKW DLUFUDIW JUDGH DOXPLQXP
FRQVWUXFWLRQ
‡ 5DSLGGHSOR\PHQW
‡ &RUURVLRQUHVLVWDQW
‡ ,GHDOIRUWHPSRUDU\RUSHUPDQHQWLQVWDO
ODWLRQV
‡ %XLOWLQSLYRWFOHYLVIRUHDV\WLOWXS
‡ $GMXVWDEOHKHLJKWZLQFK
‡ +LJKUDWLRZLQFK
‡ +LJKVWUHQJWKWRZHLJKWUDWLR
‡ /RZPDLQWHQDQFH
‡ ôIWµ2'DQWHQQDPRXQWLQJPDVW
ZLWKXQLYHUVDOURWDWRUPRXQWSODWH

2SWLRQV
‡ &UDQNWLOWXSUDLVLQJÀ[WXUH $/00$) 
‡ $/0URWDWLQJÀ[WXUH $/00$5% 
‡ +LWFKPRXQWÀ[WXUH $/0+LWFK0RXQW 
‡ :DOO PRXQW À[WXUH µ RU µ VWDQGRII
DUPV
‡ 6WDQGDORQHEDVH $/00$% 
‡ 'ULYHRQ PDVW VWDQG 
 
‡ &DEOH  FRD[ ULQJV VSHFLI\ ZKLFK$/0
PDVW 

0DVW%UDFNHW 0DVW%DVH

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


*HQHUDO,QIRUPDWLRQIRU2XU9DOXHG&XVWRPHUV
(DV\2UGHULQJ 'HOLYHU\ 1HZ(TXLSPHQW5HWXUQV
7ROOIUHHQXPEHUVORFDWHGWKURXJKRXWWKH8QLWHG )UHH 836 RU )HG([ *URXQG 7UDQVSRUWDWLRQ LQ WKH 3URGXFWVDUHQRWVROGIRUHYDOXDWLRQ8QGHUVRPHFLU
6WDWHVDUHDYDLODEOHIRURUGHUV7KLVSURYLGHVSHUVRQ FRQWLQHQWDO86RQPRVWLWHPVRYHU FXPVWDQFHV DWWKHGLVFUHWLRQRI+52 DQGZLWKSULRU
QHODWRQHORFDWLRQRUDQRWKHUWRDQVZHU\RXUTXHV DSSURYDO RI WKH VWRUH RI SXUFKDVH +52 ZLOO DFFHSW
WLRQVIRUH[WHQGHGKRXUV0RQGD\WKURXJK6DWXUGD\ $OO$ODVNDDQG+DZDLLVKLSPHQWVFDQQRZEHVKLSSHG DQLWHPIRUUHWXUQ8QGHUPRVWFLUFXPVWDQFHVD
<RXZLOOÀQGWKHVDPHORZSULFHVDWDOOORFDWLRQVDQG E\836*URXQGDVZHOODVE\%OXH/DEHO QG'D\ UHVWRFNLQJIHHDQGDOOIUHLJKWFKDUJHVZLOOEHDVVHVVHG
WKDQNVWRFRPSXWHUVZHKDYHWKHVWRFNOHYHOVRIDOO $LU RU5HG/DEHO 2YHUQLJKW RU86363OHDVHDVN
ORFDWLRQVDYDLODEOHWRHDFKVDOHVSHUVRQIRUHVWLPDWHV IRUFKDUJHV <RXUPHDQVRIUHIXQGIRUUHWXUQVZLOOEHWKHVDPHDV
RIDYDLODELOLW\DQGGHOLYHU\ WKDWXVHGIRU\RXURULJLQDOSD\PHQWH[FHSWIRUFDVK
,QD+XUU\",IQHFHVVDU\WRH[SHGLWHVKLSPHQWV836
ZKLFKZLOOEHUHIXQGHGE\FKHFN+52ZLOOSD\IURPLWV
KDV5HG/DEHO RYHUQLJKW %OXH/DEHO QGGD\ DQG
+RXU´2Q/LQHµ2UGHULQJLVQRZDYDLODEOHRQWKH FRUSRUDWHRIÀFHV,WFDQWDNHXSWRWZRZHHNV
2UDQJH/DEHO GD\ VHUYLFHVDYDLODEOHDWDQH[WUD
,17(51(785/LVKWWSVZZZKDPUDGLRFRP
FRVW3OHDVHUHTXHVWFKDUJHVIRUWKHVHVHUYLFHV
'HIHFWLYH PHUFKDQGLVH PD\ EH UHWXUQHG ZLWKLQ 
6KLSPHQWVDUHPDGHIURPDQ\RIRXUORFDWLRQVWKDW )RUHLJQ'HOLYHULHV:HVKLSZRUOGZLGH&RQWDFWRXU GD\VRIWKHRULJLQDOSXUFKDVHIRUH[FKDQJH2ULJLQDO
KDV WKH SDUWLFXODU LWHPV \RX QHHG LQ VWRFN ,Q PRVW VWRUHVE\ID[RUHPDLOZLWK\RXUQHHGV:HFDQJLYH UHFHLSW PXVW DFFRPSDQ\ WKH UHWXUQ &RQWDFW \RXU
FDVHVWKHVKLSPHQWZLOOEHPDGHIURPWKHORFDWLRQ \RXTXRWHVDQGGHWDLOVIRUSODFLQJ\RXUIRUHLJQRUGHU VDOHVPDQIRUGHWDLOV
QHDUHVW \RX LI VWRFN LV DYDLODEOH  +52 LV WU\LQJ WR 3D\PHQWPHWKRGVLQFOXGHZLUHWUDQVIHUGLUHFWWRRXU
SURYLGHWKHTXLFNHVWVKLSPHQWVLQWKHLQGXVWU\XVLQJ
WKHVHPHWKRGV
EDQNDVZHOODVSD\PHQWE\9,6$0&FKDUJHFDUGV
3D\3DO RU FKHFN GUDZQ LQ 86 )XQGV IURP D 86
0DQXIDFWXUHUҋV1HZ
&DOLIRUQLD FXVWRPHUV FDQ QRZ RUGHU XVLQJ WROOIUHH
%DQN6KLSPHQWVDUHPDGH GHSHQGLQJ RQVL]H E\ (TXLSPHQW:DUUDQWLHV
836)('(;'+/RULQWHUQDWLRQDODLUPDLO6RPH +DP 5DGLR 2XWOHW VXSSRUWV DOO PDQXIDFWXUHUҋV ZDU
QXPEHUVWRVSHDNWRWKHLU&DOLIRUQLDVWRUHRIFKRLFH RUGHUVWRVRPHIRUHLJQFRXQWULHVFDQQRWEHLQVXUHG UDQWLHV $FWXDO ZDUUDQW\ WHUPV DUH LQFOXGHG ZLWKLQ
WRWKHIXOOYDOXH WKHVKLSSLQJFRQWDLQHURIPRVWLWHPV,IQHHGHG\RX
PD\UHTXHVWIURPDQ\RIRXUORFDWLRQVDIUHHFRS\RI
6DOHV7D[ 7UXFN'HOLYHU\2QGD\RIGHOLYHU\E\WUXFNSOHDVHEH WKHPDQXIDFWXUHUҋVZULWWHQWHUPVIRUDQ\ZDUUDQWHHG
+DP5DGLR2XWOHWFROOHFWVUHPLWVDQGUHSRUWVVDOHV VXUHWRKDYHHQRXJKKHOSDQGRUSURSHUHTXLSPHQW SURGXFW3OHDVHUHTXHVWE\PRGHOQXPEHUDQGLQGLFDWH
WD[ LQ DFFRUGDQFH ZLWK DOO VWDWH DQG ORFDO UHTXLUH RQKDQGIRUXQORDGLQJPHUFKDQGLVH7UXFNGULYHUVDUH WKHSDJHLQWKLVFDWDORJWKDWUHSUHVHQWVWKHSURGXFW
PHQWV)RUPRUHLQIRUPDWLRQSOHDVHYLVLWRXU6DOHV 127 UHTXLUHG WR SURYLGH DVVLVWDQFH ,I \RX DUH QRW
7D[)$4ZHESDJHORFDWHGDWKWWSVZZZKDPUDGLR H[SHULHQFHGDWKDQGOLQJODUJHDZNZDUGLWHPVVXFK +DP 5DGLR 2XWOHW ZLOO LQ PDQ\ FDVHV SURYLGH LQ
FRPJHQHUDOBLQIRBVDOHVBWD[FIP DVWRZHUVDQWHQQDVRUDPSOLÀHUVSOHDVHDVNSURSHUO\ VWRUH UHSDLUV SOHDVH FRQWDFW WKH VWRUH RI SXUFKDVH
WUDLQHGSHRSOHWRDVVLVW\RX IRU LQIRUPDWLRQ ,W ZLOO EH QHFHVVDU\ WR SURYLGH XV
<RXZLOOÀQGWKDWWKLVVPDOOH[WUDFKDUJHZLOOEHPRUH ZLWKWKHLQYRLFHQXPEHUDQGSXUFKDVHGDWHDVPRVW
WKDQRYHUFRPHE\WKHFRQYHQLHQFHRIWKHODUJHVWKDP &DQDGLDQ2UGHUVFDQQRZEHVKLSSHGYLD8367KHVH PDQXIDFWXUHUVQHHGWKLVLQIRUPDWLRQWRSURFHVVXQGHU
UDGLRLQYHQWRULHVLQWKH8QLWHG6WDWHV<RXZLOODOVRÀQG FRVWVZLOOEHDGGHGWR\RXULQYRLFH WKHLU)5((ZDUUDQW\UHSDLUWHUPV
FRXUWHRXVDQGNQRZOHGJHDEOHVDOHVSHRSOHWRDVVLVW
\RX:HWKLQN\RXZLOOÀQG+52WREHWKHFRPSDQ\
\RXZDQWEDFNLQJ\RXZKHQLWFRPHVWRGHDOLQJZLWK
'DPDJHG,WHPV 1HZ(TXLSPHQW
836 RU )HG([  ,I WKH LWHP LV REYLRXVO\ GDPDJHG
DQ\SUREOHPV\RXPLJKWKDYHZLWKPDQXIDFWXUHUVRU
VKLSSLQJFRPSDQLHV
QRWH WKLV ZLWK WKH GULYHU DQG UHIXVH VKLSPHQW 7KLV :DUUDQW\5HWXUQV
LWHPZLOOEHUHWXUQHGWR+52DQGDQRWKHUZLOOEHVHQW :KHQUHWXUQLQJHTXLSPHQWIRUUHSDLUSOHDVHSDFNWKH
DWQRDGGLWLRQDOFKDUJH,IKLGGHQGDPDJHLVQRWHG LWHPLQRULJLQDOSDFNLQJPDWHULDORUVRPHWKLQJVLPLODU
3KRQH2UGHUV FRQWDFW836RU)HG([DVVRRQDVSRVVLEOH7KH\ZLOO WR SURYLGH DGHTXDWH SURWHFWLRQ GXULQJ WKH VKLSSLQJ
7R SODFH D SKRQH RUGHU XVLQJ D FUHGLW FDUG SOHDVH DUUDQJHSLFNXS2QFHWKHLWHPLVUHFHLYHGE\+52D SURFHVV1RWHRQER[´$77(17,216(59,&(µ,Q
KDYHWKHIROORZLQJLQIRUPDWLRQDYDLODEOHLI\RXDUHD UHSODFHPHQWZLOOEHVHQW FOXGHDFRS\RI\RXUSXUFKDVHLQYRLFHDQGDFRPSOHWH
ÀUVWWLPHFDOOHURUKDYHQRWPDGHDUHFHQWSXUFKDVH DQGGHWDLOHGGHVFULSWLRQRIWKHSUREOHPV:LWKRXWWKH
IURP+52 758&.,IWKHUHLVGDPDJHRUWKHVKLSPHQWLVVKRUW LQYRLFHRUDFRPSOHWHGHVFULSWLRQGHOD\VZLOOEHH[SH
LWLVWKHFXVWRPHU
VUHVSRQVLELOLW\WRÀOHWKHFODLPZLWK ULHQFHGLQSURYLGLQJWKHSURSHUVHUYLFHDQGUHWXUQLQJ
:HZLOODVNIRU\RXUFDOOVLJQ LIDQ\ FUHGLWFDUGQXP WKHWUXFNLQJFRPSDQ\$WWKHWLPHRIUHFHLSWRILWHPLW WKHLWHPWR\RX%HVXUHWRLQVXUHWKHSDFNDJHIRULWV
EHU H[SLUDWLRQ GDWH \RXU KRPH WHOHSKRQH QXPEHU LVUHFRPPHQGHGWKDW\RXKDYHWKHGULYHUZULWH´GDP UHSODFHPHQWFRVW
DQGSRVVLEO\WKHQDPHDGGUHVVDQGWHOHSKRQHQXP DJHGµRULQGLFDWHVKRUWDJHRQWKHELOORIODGLQJKHJLYHV
EHURIWKHEDQNOLVWHGRQ\RXUFKDUJHFDUGVWDWHPHQW WR\RX%HVXUHWRKDYHWKHVDPHQRWDWLRQDVZHOODV +52ZLOOUHSDLURUUHSODFHWKHGHIHFWLYHLWHPDWRXU
GULYHUVVLJQDWXUHRQKLVFRS\DOVR RSWLRQ,IWKHLWHPLVIRXQGWREHGHIHFWLYHXQGHUWKH
WHUPVRIWKHPDQXIDFWXUHUҋVZDUUDQW\QRFKDUJHZLOOEH
3D\PHQW 0$,/,WLVWKHFXVWRPHUҋVUHVSRQVLELOLW\WRÀOHDOOORVV PDGHIRUVHUYLFHRUUHWXUQVKLSSLQJZLWKLQFRQWLQHQWDO
:H DFFHSW 9LVD 0DVWHU&DUG $PHULFDQ ([SUHVV RUGDPDJHFODLPVZLWKWKHSRVWDOGHSDUWPHQW 86$,WLVWKHFXVWRPHUҋVUHVSRQVLELOLW\WRVKLSDOOGH
'LVFRYHU&DUGDQG3D\3DO3HUVRQDOFKHFNVDUHDOVR IHFWLYHLWHPVWRWKHVHUYLFHFHQWHUIRUZDUUDQW\UHSDLU
DFFHSWHGKRZHYHUSURFHVVLQJWLPHPD\GHOD\VKLS
PHQWE\VRPHGD\V 3ULFHV +52([WHQGHG:DUUDQW\
0DQ\SULFHVVKRZQDUHVXJJHVWHGOLVWSULFH,QPRVW +52QRZRIIHUVDQRSWLRQDO([WHQGHG:DUUDQW\3UR
:KHQXVLQJDFUHGLWFDUGSOHDVHKDYHWKHFDUGLQIURQW FDVHV ZH RIIHU ODUJH GLVFRXQWV (TXLSPHQW PDQX JUDPIRUPRVW$PDWHXU5DGLRVZKLFKPXVWEHSXU
RI\RXVLQFHZHZLOOQHHGDOOWKHLQIRUPDWLRQLQFOXG IDFWXUHUVFRQVWDQWO\FKDQJHSULFHVRIIHUVSHFLDOVRU FKDVHGZLWKLQGD\VRIWKHSXUFKDVHRIWKHUHODWHG
LQJWKHQDPHRIWKHLVVXLQJEDQN,IWKHFDUGKROGHUҋV UHDFWWRWKHLQWHUQDWLRQDOH[FKDQJHUDWHV6LPSO\FDOO SURGXFW 7KH ([WHQGHG :DUUDQW\ 3URJUDP VWDUWV DW
%,//,1*DGGUHVVGLIIHUVIURPWKHVKLSSLQJDGGUHVV RQHRIRXUQXPEHUVDQGRXUVWDIIZLOOEHKDSS\ WKHFRQFOXVLRQRIWKHQHZSURGXFWRULJLQDO ZDUUDQW\
SOHDVH EH VXUH WRVSHFLI\ ERWK DGGUHVVHV DQG WHOH WRTXRWH\RXWKHFXUUHQWVHOOLQJSULFHRIWKHLWHP\RX SHULRGDQGPXVWEHSURFHVVHGE\+52GLUHFWO\YLD
SKRQHQXPEHUV)RU\RXUSURWHFWLRQZHWKRURXJKO\ DUHLQWHUHVWHGLQ3ULFHVDUHVXEMHFWWRFKDQJHZLWKRXW DQ\RIRXUVWRUHV7KH([WHQGHG:DUUDQW\3URJUDP
LQYHVWLJDWHWKHYDOLGLW\RIDOOFUHGLWFDUGSXUFKDVHV QRWLFHRUREOLJDWLRQWRWKHFXVWRPHU6RUU\ZHFDQQRW FDQ EH SXUFKDVHG IRU RQH   RU WZR   DGGLWLRQDO
KRQRUW\SRVLQWKLVFDWDORJ \HDUV GRHV QRW DSSO\ WR DFFHVVRU\ LWHPV DQG LV
&2'2UGHUV 6RIWZDUH
DYDLODEOHWRWKHRULJLQDOSXUFKDVHURQO\DQGQRWWUDQV
IHUDEOH6HHSDJHIRUGHWDLOV
&2'SD\PHQWVPXVWEHPDGHE\FDVKLHUVFKHFNRU
6RIWZDUHLVVROGRQDQRQUHWXUQDEOHEDVLV$Q\VRIW
PRQH\RUGHUDWWKHWLPHRIGHOLYHU\7KHUHLVDVPDOO ZDUHSUREOHPVZLOOEHUHVROYHGXQGHUWKHWHUPVRIWKH
IHHIRU&2'VKLSPHQWV PDQXIDFWXUHUҋVZDUUDQW\ 6XSSRUW
+52SULGHVLWVHOILQLWVDELOLW\WRVHUYLFHWKHFXVWRPHU
&RPPHUFLDO6DOHV /RVW,WHPV ,IWKHUHLVDSUREOHPSOHDVHFRQWDFWWKHPDQDJHURIWKH
VWRUHIURPZKLFK\RXSXUFKDVHGWKHPHUFKDQGLVH,I
3XUFKDVH2UGHUV :KHQ\RXURUGHULVGHOLYHUHGSOHDVHFDUHIXOO\FRXQW
LWHPVDQGLIDQ\WKLQJLVPLVVLQJQRWLI\+52DWRQFH
IRUVRPHUHDVRQ\RXUSUREOHPFDQQRWEHUHPHGLHGE\
WKDWVWRUHPDQDJHUSOHDVHIHHOIUHHWRFDOO+DP5DGLR
:ULWWHQ SXUFKDVH RUGHUV ZLOO EH DFFHSWHG IURP FLW\
VWDWHDQGIHGHUDODJHQFLHVDQGZLWKSULRUDSSURYDO 2XWOHW&RUSRUDWH+HDGTXDUWHUVDW  DQG
2FFDVLRQDOO\FDUWRQVVKLSSHGDWWKHVDPHWLPHZLOO H[SODLQWKHVLWXDWLRQ$WWKLVSRLQWRXUQDWLRQDOVDOHV
RIFUHGLWIURPFRPPHUFLDORUJDQL]DWLRQV+52TXRWHV DUULYHDWWKHLUGHVWLQDWLRQWZRRUWKUHHGD\VDSDUW
LQPRVWFDVHVSULFHVWKDWUHTXLUHSD\PHQWRQUHFHLSW VWDIIZLOOVHHWKDW\RXUSUREOHPLVDGGUHVVHG
RIPHUFKDQGLVH<RXPD\ÀQGDVXUFKDUJHIRUFUHGLW ,I\RXQRWLI\+52ZLWKLQGD\VZHZLOOUHSODFHORVW
WHUPVDSSOLHGWR\RXUSULFLQJ3OHDVHLQGLFDWHWKDW\RX RUGDPDJHGLWHPVDIWHUFRPSOHWLRQRISURSHUGRFX
7KDQN<RXIRUFKRRVLQJ+52
UHTXLUHWHUPVZKHQFDOOLQJIRUSULFHTXRWHV PHQWDWLRQDQGDFFHSWDQFHE\WKHVKLSSLQJDJHQF\ 7KH:RUOGҋV/DUJHVW+DP2XWOHW

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


6HUYLQJ<RX)URP&RDVWWR&RDVWDQG$URXQGWKH:RUOG

0LOZDXNHH:,
3RUWODQG25  
    
 
2DNODQG&$ 6DOHP1+
   
  'HQYHU&2
  (5(/,04*(  1HUL[234-4NY
  )PSS>/01;LK2)*<:
%XUEDQN&$ 1HZ&DVWOH'( 5,\JSPK:[
  5LHY+PZUL`SHUK )VI2)*0(7OPS(+5/
  3ODQR7;    5PNLS20,@79VU55-(
  7OPS>(3+0
     -YLK>7,,YPJ2,1*
  /V\Y-(?  >PSL`2+,A2
$QDKHLP&$ :RRGEULGJH9$ ,THPS!HUHOLPT'OHTYHKPVJVT
   
   
6DQ'LHJR&$ 3KRHQL[$= $WODQWD*$
     
     

2UGHU7ROO)UHH)URPD/RFDWLRQ1HDU<RX 
2U7DNH$GYDQWDJHRI6HFXUH+RXU2UGHULQJ
KWWSVZZZKDPUDGLRFRP


$7/$17$*$ 4HYR21=64NY
,I\RXUFORVHVWQXPEHULVEXV\SOHDVHFDOORQHRIRXURWKHUQXPEHUV %XIRUG+Z\ +H]PK(0?3+LUPZL

3KRQH+RXUVDPWRSP0RQGD\²6DWXUGD\ 'RUDYLOOHPLQRUWKRI, 1HTLZ22>5?


  9H`>5-)
2Va2+.*
+RXU)$;2UGHU/LQHVDWDOO6WRUH/RFDWLRQV  
+RXU)$;  
,THPS!H[SHU[H'OHTYHKPVJVT

+:<
%XUEDQN
:HVW
1WK

2II5DPS
  

:*RRG+RSH5'

+:
<

86




 
0,/:$8.((

%XHQD9LVWD2II5DPS

)<9)(52*(  4HYR54.44NY '(19(5&2


;VT2>*
0LNH.%9+)0JU 0,/:$8.((:, 7RP:7-30JU
>4HNUVSPH 1PT5(1.
(,/,))$YH -RKQ:‘,*0LNH.&‘60 :*RRG+RSH5RDG *DU\.$<7%
   -HII:‘42-LP.*‘33   6WDQ.'$8<3DXO:.+2
.^LU2.9/ -D\1‘0(85REE.&‘=*.
    /DUU\:%%9%
*YHPN2+<96 (ULF.&‘:27-XDQ.3<
 
0DUN.'(((
/V\Y-(? .\Z5<8 +RXU)$;   /DXUD.%8+) +RXU)$;   *UHJJ:$:;
(PDLO -HUHPLDK1‘.02 (PDLO +RZDUG:$$;4
,THPS!I\YIHUR'OHTYHKPVJVT GHQYHU#KDPUDGLRFRP :RRG\:‘($< PLOZDXNHH#KDPUDGLRFRP 7RP.*(($QWRQH%LOO

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  


$OO6WRUHV2SHQDPSP0RQGD\6DWXUGD\ 6725(/2&$7,216
To San Francisco 7R)ODJVWDII
723+,/$'(/3+,$

I-880
65
:,/0,1*721
%HOO5RDG
7R
5th Ave 6FRWWVGDOH
 Embarcadero
Exit


<
3HRULD$YHQXH

Embarcadero
+:
2OLYH'XQODS$YHQXH

65
UG$YHQXH


65

WK$YHQXH
Livingston
721
( :-(
56(<

Oakland
Estuary
 17

Cotton
65

7

720$5</$1'

it
Ex
5
+ +

Dennison
:<
17 57

e
'(/$:$5(

I-880
Av
32 12

rd
0(025,$/ 10

23
10 17
%5,'*(
'8

7R7XFVRQ
To Oakland Airport

1(:&$67/('( .HQ12+'0JU 2$./$1'&$ 1LFN$.';0JU 3+2(1,;$= 5RQ$-70JU


1RUWK'XSRQW+Z\86 $QGUHZ11=6 /LYLQJVWRQ6W 5D\.(2*0 1UG$YHQXH 6WHYH:4<
3DUNZD\3OD]D 5R\:%(2' ,DWUG$YH5DPS 1LFN.168   -LP.(2*
5RQ$&5) *DU\.0099 0LNH.''
     
+DUU\.$7; -HQQLIHU -LP.(((8
    +RXU)$;   5LFKDUG.5$%
+RXU)D[   +RXU)$;   %RE:5+
(PDLOQHZFDVWOH#KDPUDGLRFRP (PDLORDNODQG#KDPUDGLRFRP (PDLOSKRHQL[#KDPUDGLRFRP &UHJJ

+:<
%($9(5721


3257/$1' Dunkin’
Donuts
 
+:<

(;,7

+:<
: 25(*21 
&,7<
7,*$5'

3/$127; 'HH18,*0JU 3257/$1'25 %LOO.:&(0JU 6$/(01+ 'DYH1('80JU


(3ODQR3DUNZD\ (GGLH.'5$= 6:3DFLÀF+Z\ : 0LNH:;: 1%URDGZD\' 3HWHU.,0%RE1(81
6XLWH /RUUDLQH.'960   3DW:'8. PL1RI%RVWRQ([LW, %DUU\1'18'DYH1,;
5REHUW::: $OH[LD172< &DO:$:2.-RH.%66$
     
/DUU\.$=:< 1RUP.',)) 3HWHU:&%<*UHJ.*76
  +RXU)$;   7HG.(:5;   6WHYH1$70LNH.&/37
'DYH:%.;$
+RXU)$;   -RKQ.%2, (PDLOSRUWODQG#KDPUDGLRFRP (ULF1(-3 +RXU)$;   *HRII:*&)
(PDLOSODQR#KDPUDGLRFRP -DVRQ.')16 (PDLOVDOHP#KDPUDGLRFRP *UHJJ:$0$0DU\

pitDO%Hltw
ol Be D\
OWZay
 CaSLW
&D
+RXU)$; I-495
1

2UGHU1XPEHUV
S
U


86
I-95

$QDKHLP  From I-95


North


$WODQWD 
%XUEDQN  RT 123

'HQYHU  POTOMAC


0LOZDXNHH  MILLS OPTIZ BLVD

1HZ&DVWOH  BUILD AMERICA


%8,/'$0(5,&$
2DNODQG  From I-95
Rippon Landing
EXIT 156
BUSINESS CENTER

3KRHQL[  South Exit 152


8
US

RT 234
61

3ODQR  EXIT 152

3RUWODQG 
6$1',(*2&$ -RH16,;0JU :22'%5,'*(9$ 6WHYH:6+*0JU
.HDUQ\9LOOD5G -HUU\10&- 6DOHP  %XLOG$PHULFD'ULYH%OGJ% %DR)DQJ..-).
+Z\ &ODLUHPRQW0HVD%OYG %RE15/*
%LOO:5*6
6DQ'LHJR  ([LW,6RXWKWR86 -RH.,2+5
-RKQ.'5(*
   
 
5DXO.5$8/ :RRGEULGJH   
5LFN.(6.;
5RQ:<);
+RXU)$;   +RXU)$;  
(PDLOVDQGLHJR#KDPUDGLRFRP (PDLOZRRGEULGJH#KDPUDGLRFRP

0LG$WODQWLF  ‡1RUWKHDVW  ‡1HZ(QJODQG   


,1'(;
0$18)$&785(56 6*& 
$%5,QGXVWULHV  7DUKHHO$QWHQQDV 
$FRP  7LJHUWURQLFV 
$OLQFR  7LPHV&DEOH 
$OSKD'HOWD  7LPHZDYH7HFKQRORJ\ 
$PHULWURQ  8QDGLOOD  6HUYLQJ<RX)URP&RDVWWR&RDVW
$QGUHZ  8QLGHQ  $URXQGWKH:RUOG
$55/3URGXFWV  867RZHU
$UWVFL  9LEURSOH[  2UGHU7ROO)UHH
$VWURQ  :HVW0RXQWDLQ5DGLR 
)URPD/RFDWLRQ1HDU<RX
$XVWLQ$QWHQQDV  <DHVX 
%HOGHQ  :HVWHUQ86&DQDGD
%LRHQQR  
%HQFKHU  352'8&76 0RXQWDLQ&HQWUDO
%RQJR7LHV  $PSOLÀHUV  
%XFNPDVWHU  $QDO\]HUV 
%XWHO  $QWHQQD7XQHUV  6RXWKHDVW&HQWUDO
&DEOH;SHUWV  $QWHQQDV 
&DOOERRN   +DQGKHOG  0LG$WODQWLF&HQWUDO
&KDPHOHRQ$QWHQQD   +) 
&RD[:UDS   +)0RELOH
&RD[6HDO   2Q*ODVV 
1RUWKHDVW
&RPHW   3RUWDEOH 1HZ(QJODQG(DVWHUQ&DQDGD
&4   3XEOLF6DIHW\  
&UHDWH   5HSHDWHU 
&XVKFUDIW  ,I<RXU&ORVHVW1XPEHU,V%XV\
 6:/6FDQQHU 
'DLZD  3OHDVH&DOO2QHRIRXU2WKHU1XPEHUV
 9+)8+) 
'DYLV&DEOH   9+)8+)0RELOH +RXU)$;2UGHU/LQHV
'DYLV:HDWKHU6WDWLRQV  $XGLR6ROXWLRQV  6HHSDJHVDQG
'LDPRQG  %DOXQV,QVXODWRUV 
)DUDOORQ  %DWWHULHV%DWWHU\3DFNV 
*DS$QWHQQD  %DWWHU\&KDUJHUV  0DVWV 
*RUGRQ:HVW6FKRRO:<,  %RRNV&'V0DJD]LQHV 0LFURSKRQHV VHHDOVR+HDGVHWV
*UXQGLJ(WRQ   $PDWHXU   'HVN 
+DP5DGLR'HOX[H   6:/6FDQQHUV   +DQGODSHO 
+HLO6RXQG  &DEOHV 0RUVH&RGH5HDGHUV3UDFWLFH 
+XVWOHU   $XGLR  0RXQWV%UDFNHWV
+\*DLQ  &ORQLQJ3URJUDPPLQJ   (TXLSPHQW 
,FRP   &RD[   0RELOH$QWHQQDV
-6&   3DFNHW'DWD  1RLVH%DQGSDVV)LOWHUV 
.DQWURQLFV   3RZHU  2ZO 
.HQW   5RWDWRU  3DFNHW3DFWRU71&'LJLWDO 
.HQZRRG  &DVHV5DGLR  3RZHU3DQHOV2XWOHW6WULSV 
/DUVHQ  &ORFNV  3RZHU6XSSOLHV 
/'*(OHFWURQLFV  &RPSXWHU5DGLR,QWHUIDFH  5DGLR&RQWURO 
/LGR  &RPSXWHU6RIWZDUH 5DGLRV$PDWHXU
0DKD   &ORQLQJ3URJUDPPLQJ   %DVH 
0DOGRO   'DWDEDVHV   +DQGKHOG 
0)-  /RJJLQJ   0RELOH 
    3DFNHW  5DGLRV6SHFLDOW\
0LUDJH   5DGLR&RQWURO   (PHUJHQF\ 
1&*   6FDQQHU3URJUDPPLQJ   6FDQQHUV 
1LIW\0LQL0DQXDOV   6'56FDQQLQJ   6KRUW:DYH/LVWHQLQJ 
2&,   6WXG\DLGV   6RIWZDUH'HÀQHG 
3DOVWDU  &RQQHFWRUV$GDSWHUV 5RWDWRUV
3RO\3KDVHU  'XPP\/RDGV  6RODU3RZHU 
3RZHUZHU[  'XSOH[HUV  6SHDNHU0LNHV 
3U\PH5DGLR3URGXFWV  (PDLO VDOHV#KDPUDGLRFRP 6SHDNHUV 
5DGLR:DY]$QWHQQDV  +HDGVHWV(DUSKRQHV  6WRUH/RFDWLRQV 
5HPRWHULJ  ,QWHUQHW5DGLR,QWHUIDFH  6WXG\$LGV 
5LJ([SHUW  ,QWHUQHWKWWSZZZKDPUDGLRFRP 6ZLWFKHV$QWHQQD 
576\VWHPV  .H\V.H\HUV  6:5:DWW0HWHUV 
6DPOH[$PHULFD  /LJKWQLQJ6XUJH3URWHFWRUV 7RZHUV
6FDQQHU0DVWHU     :HDWKHU6WDWLRQV 
6'5SOD\  0DSV0DS%RRNV  :RUOGZLGH:HE KWWSZZZKDPUDGLRFRP

 3KRQH2UGHUV :HVW  ‡0RXQWDLQ&HQWUDO  ‡6RXWKHDVW  

You might also like