VNV House Rules

You might also like

Download as pdf or txt
Download as pdf or txt
You are on page 1of 28

+RXVH5XOHV

&KDUDFWHU&UHDWLRQ
7RPDNHDFKDUDFWHU\RXUROOGVL[WLPHVDQGWKHQSXWWKHPWRZDUGV\RXU6WUHQJWK
(QGXUDQFH,QWHOOLJHQFH$JLOLW\&KDULVPDDQG:LOO
<RXWKHQUROOG GIRUIHPDOHV DQGPXOWLSO\WKHUHVXOWE\WHQ7KLVLV\RXUERG\
ZHLJKW
<RXWKHQUROOGIRUERQXVSRLQWV<RXFDQGLVWULEXWH\RXUERQXVSRLQWVLQ
DQ\ZD\\RXZDQWDVSHUWKHVHUXOHV
 ,QFUHDVHDQDWWULEXWHRQDRQHSHURQHUDWLR
 ,QFUHDVH\RXUZHLJKWE\WHQSRXQGVSHUERQXVSRLQW
 *DLQDQHZNQRZOHGJHDUHDSHUERQXVSRLQWVSHQW
 ,QFUHDVH\RXUZHDOWKE\RQHSHUSRLQW

%DVLF&KDUDFWHULVWLFV$QHZFKDUDFWHULVWLFLVDGGHG:LOO
:LOOLVWKHPHQWDOVWUHQJWKRIDFKDUDFWHU,WLVQRWDSHUVRQDOLW\WKLQJQRULVLW
DJDXJHRIKRZLQWHOOLJHQWDFKDUDFWHULV,WVWKHLUPHQWDOIRUWLWXGH7KHLUSHUVRQDO
LQQHUVWUHQJWK8VHWKHKLWPRGVIRULQWHOOLJHQFH$OVRXVHWKHDFFXUDF\DQGGDPDJH
PRGLILHUIRUDJLOLW\

6XSHU3RZHUV7KHRQO\GLIIHUHQFHLVZKHQDGXSOLFDWHLVUROOHGWKHGDPDJHLVQRW
MXVWGRXEOHG([WUDGRVHVRISRZHUVFDXVHVGDPDJHWRPRYHXSWKHFKDUWRQKRZ\RX
UROOGDPDJHWKHVDPHZK\+7+GRHV6RLI\RXUROOWZRGRVHVRI/LJKW&RQWURO\RX
GRQ¶WGRGGDPDJHEXWG<RXFDQGURSDQDVSHFWRIDSRZHUIRUPRUHGDPDJH
6D\\RXUROOOLJKWFRQWURO\RXFDQGURSWKHGHIHQVHWRUDLVH\RXUGDPDJHXSRQHOHYHO
6R\RXFDQJRIURPGWRG,I\RXDOVRGURSWKHIODVKDWWDFN\RXFDQLQFUHDVH\RXU
GDPDJHWRG


)LQDO&DOFXODWLRQV

$%DVLF+LWV:HLJKWGLYLGHGE\NHHSLQJWKHUHPDLQGHUURXQGHGWRWKHQHDUHVW
WHQWK

*HQHUDO1RWHV

'HWHFW+LGGHQ2EMHFWVDQG'HWHFW'DQJHU6DPHDVWKHUXOHVEXWWKHFKDUDFWHU
JHWVWRDGGWKHLUOHYHOWRWKHSHUFHQWDJH([SHULHQFHKHOSVZKHQWU\LQJWREHDOHUW
$OVR,DOORZVRPHGHWHFWLRQVRQDGLQVWHDGRIGZKHQLWVSUHWW\REYLRXV

5HDFWLRQ0RGLILHUV7KLVLVGRQHDZD\ZLWKDOWRJHWKHUDQGUHSODFHGZLWKD
ZKROHQHZFKDUW
6XSHU3RZHU'HVFULSWLRQV

$EVRUSWLRQ0RVWO\DVWKHUXOHERRNEXWPRVWDEVRUSWLRQSRZHUVUHTXLUHVRPH
PRYHPHQWSRLQWVWREHVSHQW

$GDSWDWLRQ3RZHUHTXDOVSHUXVHDVDGHIHQVHRUSHUKRXUWRDGDSWWRDKRVWLOH
HQYLURQPHQW,I\RXUHQYLURQPHQWKDVWZRRUPRUHIDFWRUVWKDWDUHKDUPIXOWKHQ\RX
VSHQGDSRLQWSHUKRXUIRUHDFKIDFWRU\RXPXVWDGDSWWR$GDSWLQJWRVSDFHPHDQV\RX
QHHGSURWHFWLRQIURPQRDLUSUHVVXUHDQGFROG6RWKDWLVWZRSHUKRXU8QGHUWKHVHD
PHDQVQRDLUDQGPD\EHH[WUHPHSUHVVXUHVRRQHRUWZR$QGH[WUDGRVHRIWKLVSRZHU
PD\QRWRQO\SURWHFW\RXIURPKDUPEXWPDNH\RXDGDSWHGWRWKHHQYLURQPHQW7KLV
ZRXOGFRVWDQRWKHUSRLQWSHUKRXU8QGHUWKHVHDDFKDUDFWHUZLWKWZRGRVHVRIWKLV
SRZHUPD\QRWRQO\DGDSWEXWJURZZHEEHGKDQGVDQGIHHWIRURQHH[WUDSRZHUSRLQW
$1'KDYHWKHLUH\HVEHFRPHPRUHVHQVLWLYHWROLJKWVRWKH\FRXOGVHHIRUHYHQPRUH
SRZHU

$UPRU$FKDUDFWHUZLWKELRDUPRUJDLQVPRUHSURWHFWLRQHTXDOWRWKHLUEDVLFKLWVSHU
OHYHO$OVRDUPRUDOORZVDFKDUDFWHUWRUROOZLWKH[WUDGDPDJHHTXDOWRRQHWHQWKWKHLU
WRWDOUHPDLQLQJDUPRU$OVRHDFKOHYHO\RXJDLQ$'5HTXDOWR\RXUFXUUHQWEDVLFKLWV
<RXJHWWRXJKHUDV\RXFOLPEXSWKHH[SHULHQFHODGGHU
7HFKDUPRUKDVVRPHEHQHILWVDOVR<RXPXVWGHFLGHDWFUHDWLRQLI\RXUDUPRU
LVIOH[LEOHRUULJLG,ILWLVIOH[LEOH OLNHFKDLQPDLO WKHQ\RXFDQUROOZLWKRQHWHQWK
\RXUFXUUHQW$'5DQGDGGLWWR\RXUQRUPDOUROO,ILWLVULJLGWKHQ\RXKDYHOLPLWHG
LQYXOHUDEOLW\EDVHGRQZKDWPDWHULDO\RXUDUPRULVEDVHGRQ,URQ6WHHWDGDPDQWLXP
HWF«+RZHYHUWKLVLQFUHDVHVWKHFRVWRIUHSDLUVE\DIDFWRURIWK\RXULQYXOHUDEOLW\

$QLPDO3ODQW3RZHUV7KHVHSRZHUVDUHJDLQHGZKHQLQWHURQVRUMXQN'1$LV
VRPHKRZDFWLYDWHG7KHVHSRZHUVFDQQRWEHUHPRYHGE\PHVVLQJZLWKWKHPHWDSRZHUV
VRXUFH7KHVHSRZHUVKDYHWREHUHPRYHGRUVXSSUHVVHGVXUJLFDOO\RUJHQHWLFDOO\

$VWUDO 3URMHFWLRQ 3U  SHU KRXU 7KH FKDUDFWHU FDQ PRYH EDVHG RQ , QRW $ 7KH
FKDUDFWHUFDQQRWEHFRPHYLVLEOHQRUFRPPXQLFDWHZLWKDQ\QRQDVWUDOEHLQJ7KHDVWUDO
WUDYHOHUKDVQRPDWWHULQKLVQHZIRUPVRLWRQO\KDVKLWPRGVIURP,QWHOOLJHQFH$JLOLW\
DQG:LOODVKLWSRLQWV6WUHQJWKDQG(QGXUDQFHFRPHIURPWKHPDWHULDOERG\DQGDVVXFK
GRQ¶W IDFWRU LQWR WKH DVWUDO IRUP 7KH DVWUDO WUDYHOHU ZLOO DOZD\V ILQG KLV ERG\ E\ WKH
VLOYHUFRUGWKDWHPDQDWHVIURPWKHPLGVHFWLRQDQGOHDGVWRWKHPDWHULDOERG\7KLVVLOYHU
FRUGIDGHVDZD\DIWHUDIHZIHHWEXWWKHRZQHUFDQVHHLWLIWKH\ZLVK$QDVWUDOERG\
ZLWKRXWDVLOYHUFRUGFDQJHWORVWDQGGLH$PDWHULDOERG\ZLWKRXWDVLOYHUFRUGLVDULSH
SUL]HIRUDZDQGHULQJVSLULW

$XUD3HUFHSWLRQ3U FRQVWDQWO\DFWLYHDVDQ\VHQVH&DQVHHDEHLQJ¶VDXUDWRKLW
WKHP[IRUGHWHFWLRQV:LWKDQDFWLRQFDQORRNGHHSHULQWRWKHDXUD6DYHG7KH
QXPEHURIVXFFHVVDERYHWKHLQWHOOLJHQFHRIWKHXVHUJOHDQVPRUHLQIRUPDWLRQ
QRPRUHLQIRUPDWLRQ
FDQVHHWKLQJVOLNHWUXHIRUPRULIWKH\DUH0HWD
+XPDQRUPDJLFDO

FDQVHHLIXQGHUPHQWDODWWDFNVPLQGFRQWURO
2UDFKDUDFWHU¶VDSSUR[LPDWHH[SHULHQFHOHYHO
:KDWUDFHWKHEHLQJLVLWZRQ¶WJLYH\RX
WKHLUQDPHEXW\RXZLOOUHFRJQL]HWKHDXUD¶VUDFLDO
WUDLWVHLGZDUYHQKXPDQDOLHQHWF

%RG\3RZHUV+HUHDUHVRPHQHZSRZHUV,PDGHXS
$QFKRUHG7KHUHDUHWKUHHW\SHVRIDQFKRUHG
 &DQQRWEHWHOHSRUWHGDJDLQVWWKHLUZLOO
 &DQQRWEHGLPHQVLRQDOO\PRYHGDJDLQVWZLOO
 &DQQRWEHPRYHGLQWLPHDJDLQVWWKHLUZLOO

8QGLIIHUHQWLDWHG%RG\7KLVFKDUDFWHUKDVQRRUJDQVV\VWHPVRU
DQ\WKLQJRIQRWHLQVLGHWKHLUERG\-XVWDVDSRWDWRLVRQHVROLGWKLQJVRLVWKHFKDUDFWHU
7KH\DUHPDGHXSRIVRPHOLYLQJPDWHULDOEXWWKH\GRQRWKDYHDQ\WKLQJVSHFLILF
LQVLGHWKHPRIQRWH7KLVFKDUDFWHUVHHPVDOOKXPDQRQWKHRXWVLGHEXWLQVLGHWKH\DUH
XQLIRUP7KHEHQHILWVRIWKLVDUHDVIROORZV7KH\FDQQRWEHFULWLFDOO\KLW7KH\ZLOO
QRWEOHHGDQGORRVHKLWV7KH\DOVRFDQQRWEHNQRFNHGXQFRQVFLRXVE\DEORZWRWKH
KHDG7KHPLQGLVHYHU\ZKHUHQRZQRWMXVWLQRQHFHQWUDOORFDWLRQ7KLVSHUVRQZLOOQRW
EHQHILWIURPILUVWDLGRUVXUJHU\7KH\FDQUHJURZORVWOLPEVH\HVDQGVXFKEXWVXFK
UHJHQHUDWLRQLVVORZ7KH\DUHDOVRLPPXQHWRPRVWGLVHDVHVEDFWHULDDQGYLUXVHV%XW
WKH\PD\EHVXVFHSWLEOHWRXQNQRZQRQHV7KH\DUHLQHIIHFWDQHZDQGXQLTXHVSHFLHV
DVGLIIHUHQWIURPUHJXODUKXPDQVDVKXPDQVDUHIURPDSURWR]RD

0LJKW\7KHFKDUDFWHU¶VFDUU\LQJFDSDFLW\LVPXOWLSOLHGE\G1RWH
WKLVGRHVQRWJLYHKLWVSRZHUPRYPHQW2QO\H[WUDFDUU\LQJDQG+7+'DPDJH
3RZHU'\QDPR7KHFKDUDFWHUKDVDQH[WUDRUJDQLQWKHLUERG\WKDW
JHQHUDWHVRQHSRZHUSRLQWSHUWXUQXQWLOWKHFKDUDFWHU¶VIXOOSRZHUVFRUHLVUHDFKHG7KLV
G\QDPRNLFNVLQDQGUHSOHQLVKHVWKHLUSRZHUQRPDWWHUZKDW8QOHVVWKH\DUHVWDUYHGRU
GHDG

4XLFN5HIOH[HV$FKDUDFWHUZLWKWKLVSRZHULVIDVWRQWKHGUDZ,QVWHDG
RIVXEWUDFWLQJLQLWLDWLYHE\WKH\JHWWRUROODGDQGVXEWUDFWWKLVIURPWKHWRVHH
ZKDW WKDW FKDUDFWHU QRZ VXEWUDFWV IURP LQLWLDWLYH ([ 6SHHG 'HPRQ UROOV LQLWLDWLYH
+LV$LV+HKDVTXLFNUHIOH[HVDQGJHWVDPRGLILHURI6RKHUROOVKLVLQLWLDWLYH+H
UROOVDWHQ6RWKHVFRUHLVSOXVDQGZHJHW1RZZHDUHVXSSRVHGWRVXEWUDFW
DWWKLVSRLQWEXWGXHWRKLVTXLFNUHIOH[HVZHVXEWUDFWRQO\6R6SHHG'HPRQJRHVRQ
WKHWKSKDVHWKSKDVHDQGWKHWK,IKHGLGQ¶WKDYHWKLVSRZHUKHZRXOGJRRQWKH
WKDQGWKHWK

3UHKHQVLOH+DLU7KHSHUVRQFDQFRQWUROWKHLUKDLU7KHLUKDLUFDQOLIW
[VWKHLUFDUU\LQJFDS G 3DUWRIWKHLUKDLUPXVWEHXVHGWREUDFHWKHERG\DVWKH
KDLULVVWURQJHUWKDQWKHERG\RUGDPDJHZLOOEHWDNHQDVSHUWDNLQJDEUDZOLQJDWWDFN
7KHKDLUFDQJURZXSWRILYHWLPHVWKHERG\OHQJWK%XUQWKDLUFDQUHJURZDWDQLQFKSHU
SRZHUSRLQWVSHQW+DLUDWWDFNVDV+7+DQGDW3U SHUDWWDFN

5HLQFDUQDWLRQ7\SH$7KHUHLVDVHWQXPEHURIUHLQFDUQDWLRQVWKH
FKDUDFWHU FDQ FRPH EDFN IURP GHDWK 8VXDOO\ WKLV QXPEHU LV VHW DW  EXW FDQ EH
PRGLILHGE\*0DQGSOD\HU7KLVLVVLPSO\WKHSOD\HUFRPHVEDFNZKHQGHDG7KLVFDQ
KDSSHQZLWKLQPLQXWHVRIWKHFKDUDFWHUVGHDWK

7\SH % 7KHUH LV QR VHW OLPLWV 7KH FKDUDFWHU FDQ EH HWHUQDO LI WKH FRQGLWLRQV DUH PHW
:KHQWKHFKDUDFWHUGLHVWKH\UHLQFDUQDWHEXWWKH\ORVHDOOH[SHULHQFHSRLQWV7KH\UHWDLQ
WKHLUOHYHOWUDLQLQJLQYHQWLQJSRLQWVHWFDQGXQWLOWKH\SDVVWKHOHYHOWKH\ZHUHDWZKHQ
WKH\ GLHG ODVW WKH\ FDQ QRW UHLQFDUQDWH 7KH\ FDQ RQO\ UHLQFDUQDWH DJDLQ 21&( WKH\
SDVVHGWKHODVWOHYHO
([DPSOH -RH ZDV  OHYHO ZKHQ KH GLHG +H UHLQFDUQDWHV DQG FRPHV EDFN DW WK OHYHO
%87 ZLWK QR H[SHULHQFH SRLQWV +H LV YXOHUQDEOH WR SHUPDQHQW GHDWK XQWLO KH UHDFKHV
WKOHYHODQGVLQFHKHZDVDW]HURH[SHULHQFHSRLQWV DVWKHUHLQFDUQDWLRQSURFHVVEXUQV
WKHPDOOXS LWPD\WDNHDZKLOHIRUKLPWREHFRPHVL[WKOHYHO

,Q HLWKHU W\SH WKH ERG\ FDQ XQGHUJR FKDQJHV <RX DGG XS DOO \RXU DEOLW\ VWDWV DQG
UHDVVLJQ WKHP 2QO\ UHDVVLJQ \RXU UROOHG VWDWV \RXU WUDLQLQJ ERQXVHV DQG +HLJKWHQHG
6WDWVJRZKHUHWKH\ZHUHRUJLQDOO\DVVLJQHG<RXUROOWRVHHLI\RXUVH[FKDQJHV,I\RX
UROOG\RXDUHDIHPDOH LIRUJLQDOO\PDOH WKHQPDOH LIRUJLQDOO\PDOH
UHYHUVHLIRUJLQDOO\IHPDOH
7KHQ\RXUHUROO\RXUZHLJKWDQGVWDUWRYHU

([DPSOH -RH GLHG DQG LV UHLQFDUQDWHG +LV XQ +HLJKWHG 6WDWV WRWDOOHG XS WR  VR KH
JHWV WR UHDVVLJQ WKHP ZKHUH HYHU KH ZDQWV 7KHQ KH DGGV KLV WUDLQLQJ ERQXVHV DQG KLV
+HLJKWHQHG6WDWV7KHQKHUROOVDQGDDQGVWD\VPDOH7KHQKHUHUROOVKLVZHLJKWDQG
DQGUHZULWHVKLVFKUDFWHUVKHHW-RHZDQWHGWREHVWURQJHUWKLVWLPHDURXQGVRKHSXPSHG
XSKLVVWUHQJWKDWWKHH[SHQVHRIKLVDJOLW\,WVXSWRKLP

&RPSDQLRQ 7KLVUHSODFHVWKHSRZHU3HW 7KHVXSHUKHURKDVDFKRLFHRIFRPSDQLRQRU


FRPSDQLRQV ,I WKH FKDUW RI 3RZHUV LV XVHG SUHWW\ PXFK DQ\ OLYLQJ EHLQJ FDQ EH KLV
FRPSDQLRQEXWLWPXVWILWKLVPRWLI7KHSOD\HUDQG*0PXVWZRUNWRJHWKHUWRGHWHUPLQH
KRZSRZHIXOWKHFRPSDQLRQLV$JRRGFRPSURPLVHZRXOGEHWRUROOGIRUKRZPDQ\
SRZHUV WKH FRPSDQLRQ JHWV 7KH FRPSDQLRQ FDQ EH D P\WKRORJLFDO FUHDWXUH OLNH D
3HJDVXVRUVXSHUSRZHUHGQRUPDOFUHDWXUHVXFKDVDQLQWHOOHJHQWRZO7KLVSRZHUHYHQ
FRYHUVVLGHNLFNV
,I WKLV LV UROOHG XQGHU VNLOO WKHQ WKH PRUH H[WUDYHJDQW FKRLFHV DUH JRQH 7KLV FDQ EH D
ZHOOWUDLQHGDQLPDODQRQSRZHUHGEXWWUDLQHGVLGHNLFNRUHYHQDVPDOOJURXSRIDJHQWV 
OLNH'RF6DYDJHRUWKH6KDGRZ 
5HGZLQJ ZRXOG EH D FRPSDQLRQ DV ZRXOG %XFN\ (ERQ\ 5RELQ $OIUHG )UHQFKLH RU
6TXLUUHO*LUO VODWHVW6TXLUUHO

([SHULHQFHSRLQWVJDLQHGE\WKHFRPSDQLRQDUHJLYHQWRWKHSOD\HU7KHSOD\HUWKHQGROHV
RXWWKHH[SHULHQFHDVKHFKRRVHV7KLQNRILWOLNHWKLVZKHQWKHSOD\HUILUHVDSRZHUEODVW
DWDIRHQRRQHTXHVWLRQVWKDWWKHSOD\HUJHWVDOOWKHH[SHULHQFHDQGWKHSRZHUEODVWJHWV
QRQH GR WKH\" 7KH FRPSDQLRQ LV RQH RI WKH SOD\HU V SRZHUV DQG DV VXFK WKH SOD\HU
FRQWUROVKRZPXFKH[SHULHQFHWKHFRPSDQLRQHDUQV

$V DQ RSWLRQ WKH ZHDNQHVV ,QGHSHQGHQFH FDQ EH XVHG 7KLV ZHHNQHVV JLYHV WKH
FRPSDQLRQDFXPPXODWLYHFKDQFHSHUOHYHORIZDQWLQJWRJRVROR,IWKLVKDSSHQV
WKHSOD\HUFDQVHOHFWDQHZVWOHYHOFRPSDQLRQ

&RVPLF $ZDUHQHVV  3U  5HPDLQV RQH DFWLRQ 7KH FKDUDFWHU VDYHV ,G (DFK
TXHVWLRQPRGLILHVWKHLQWHOOLJHQFHUROOE\PLQXVRQH7KHKDUGHUWKHTXHVWLRQWKH*0
PD\ORZHUWKH,VFRUHDVWKH\VHHILW7KHSOD\HUFDQFRQFHQWUDWHKDUGHU (,VSHQGH[WUD
SRZHU DQGLQFUHDVHWKHLU,VFRUHIRUSXUSRVHVRIWKDWVDYHRQDRQHSHURQHEDVLV,IWKH
GLHUROOLVOHVVWKDQWKH,VFRUHIRUWKHUROOWKH\JHWWKHDQVZHU,ILWPLVVHVE\XSWR
WKH\ JHW QRWKLQJ ,I WKH\ PLVV XS WR  WKH\ JHW WKH ZURQJ DQVZHU ,I WKH\ PLVV XS WR
 WKH\ DUH RYHUZKHOPHG ZLWK WKH XQLYHUVH DQG JR LQWR D WUDQFH 7KH\ VDYH ,G SHU
KRXUWRDZDNHQ,IWKH\PLVVRYHUWKHQWKH\DUHLQWKHWUDQFHEXWWKH\KDYHJDLQWKH
DWWHQWLRQRIVRPH&RVPLF3RZHU7KLVFDQEHJRRGRUEDG

'HDWK 7RXFK 3U   YLFWLP JHWV WZR VDYHV  6DYH &XUUHQW KLWV GLH  RU ORVH DOO KLWV
WKHQVDYHFXUUHQWSRZHUGLHRUORVHDOOSRZHU,IWKHWDUJHWKDVLQYXOQHUDELOLW\WKHLU
FXUUHQW LQYXOQHUDELOLW\ VFRUH LV DGGHG WR WKHLU KLWV DQG SRZHU PDNLQJ LW KDUGHU WR NLOO
WKHP,IWKH\KDYHDUPRUWKH$'5PXVWEHVXUSDVVHGIRUWKLVSRZHUWRZRUN

'HQVLW\&RQWURO7KLVSRZHUDOWHUVDFKDUDFWHU¶VGHQVLW\7KH\FDQEHFRPHLPPDWHULDORU
GLDPRQGKDUGRUDQ\SRLQWLQEHWZHHQ7KHFKDUDFWHUVSHQGVPRYHPHQWDQGSRZHU
SRLQWSHUWXUQ3(5SRLQWRILQYXOQHUDELOLW\DQGOEVRIPDVVDGGHGWRWKHFKDUDFWHU
,)WKHFKDUDFWHUKDVOHVVWKHQ]HURPDVVWKH\FDQEHFRPH1RQ&RUSRUHDO$VXSHUGHQVH
FKDUDFWHUJDLQVFDUU\LQJFDSDFLW\DVZHOODVZHLJKWEXW127KLWV7KH\DOVRVXIIHUD
WHPSRUDU\DJLOLW\PRGLILHULIWKH\JHWWRKHDY\

'LVLQWHJUDWLRQ  6DPH DV UXOHV EXW , MXVW ZDQWHG WR SRLQW RXW WKDW WKLV DOZD\V GRHV
VWUXFWXUDOGDPDJH

(PRWLRQ&RQWURO,IKLWZLWKDQHPRWLRQOLNH)HDU'RXEWRUVXFKWKHFKDUDFWHUVXIIHUV
WRKLWRUZKLFKHYHULVDSSOLFDEOH/RYHRU+DWHZRXOGPRGLI\UHDFWLRQV
+DWHZRXOGDOVRFDXVHSHQDOWLHVRQVRPHLQWHOOLJHQFHVDYHV
)ODPH3RZHUV0RVWO\WKHVDPHEXW,MXVWZDQWHGWRSRLQWRXWWKDWWKHIO\LQJFKDUDFWHUV
GRQ¶WMXVWFUHDWHILUH7KH\DOVRJHQHUDWHWKUXVW2QDVSHFLDOKLWWKH\FDQLJQLWHWKHLU
WDUJHW LQ ILUH GRLQJ GDPDJH IURP WKHLU FORWKHV  DQG RU HTXLSPHQW EXUQLQJ  7KLV LV MXVW
OLNHFOLQJLQJGDPDJHIURP,FH3RZHUV5ROOLQJRQWKHJURXQGSXWVRXWWKHILUHDWDUDWHRI
WKHLUEDVLFKLWVSHUDFWLRQVSHQWUROOLQJRQWKHJURXQG

)OLJKW RQO\ GLIIHUHQFH LV K\SHU IOLJKW  6SHHG LV DV IROORZV WDNH RQH WHQWK \RXU PSK
VSHHGDQGWKHQVXEWUDFW7KLVLV\RXUOLJKW\HDUVSHUKRXU6RLI\RXFDQIO\DW
PSK \RX WDNH RQH WHQWK WKDW  WKHQ VXEWUDFW  ZKLFK OHDYHV \RX DW   7KLV PHDQV
\RXIO\DWOLJKW\HDUVSHUKRXU.HHSLQPLQGXQOHVVWKHUHDUHH[WUHPHFLUFXPVWDQFHVD
K\SHUIO\LQJEHLQJFDQQRWFDUU\DQ\PDWWHUZLWKWKHPDVWKHDFOHUDWLRQGHDFOHUDWLRQZLOO
WHDUWKDWPDWWHUDSDUW
,QDQDWPRVSKHUHLW¶VWKHVDPHIRUPXODEXWLWVQRWOLJKWEXWVRXQG$OVRLI\RX
GRQ¶WKDYHDGDSWLRQWKHQK\SHUIO\LQJZLOOSUHWW\PXFKNLOO\RX

)RUFH )LHOG 7KLV SRZHU LV PRVWO\ WKH VDPH DV WKH UXOHV 7KH ELJJHVW GLIIHUHQFH LV WKDW
WKHZKHQWKHILHOGLVKLWWKHSOD\HUWDNHVRQHWHQWKRIWKHGDPDJHRIIRIWKHLUSRZHU,I
WKH3OD\HU¶VSRZHULVH[FHHGHGWKHQWKHILHOGLVEURNHQDQGWKHSOD\HUWDNHVWKHKLW$1'
WKHSRZHUORVV7KHDWWDFNLVWKHVDPH7KHSOD\HUPXVWDOVRVWDWHDWFKDUDFWHUFUHDWLRQ
ZKHWKHU WKH ILHOG LV RSDTXH FOHDU RU WUDQVOXFHQW &OHDU DQG WUDQVOXFHQW ILHOGV GR QRW
ZRUNDJDLQVWOLJKWODVHUDWWDFNV)RUFH)LHOGVDOVRGRQ¶WKROGSKDVHGQRQFRUSRUHDORU
DVWUDOREMHFWVXQOHVVWUDLQHGRUGHVLJQHGWRGRVR,IWKHNQRFNRXWUROOLVHTXDORUOHVV
WKHQWKHDPRXQWRISRZHUWDNHQE\WKHIRUFHILHOGWKHQDVPDOOKROHLVPDGHLQWKHILHOG
DOORZLQJIXOOGDPDJHWRJHWWKURXJK7KHKROHFDQEHUHSDLUHGZLWKPRYHPHQW

*DGJHW3RZHUV7KHSOD\HUFDQFRQVWUXFWDQ\JDGJHWWKDWFDQVLPXODWHRQHDVSHFWRID
VXSHUSRZHUIRUGXVHV7KHSOD\HUPXVWKDYHWKHQHFHVVDU\NQRZOHGJHDUHDVWR
FUHDWHWKHJDGJHWRULWVH[WUHPHO\GLIILFXOWWRGRVR
7RPDNHDJDGJHWWKHFKDUDFWHUUROOV,GLIWKHNQRZOHGJHDUHDVDUHSRVVHVVHGE\
WKHFKDUDFWHUGLIWKH\DUHQRW7KHFRVWLQWLPHRUPRQH\LVGROODUVPLQXV
GROODUVSHUGLHUROO81'(5WKHFKDUDFWHU VLQWHOOLJHQFHUROO7KHWLPHWDNHV
KRXUVSHUJDGJHWPLQXVRQHKRXUSHUGLHUROO81'(5WKHSOD\HU VLQWHOOLJHQFHRQWKHGLH
UROO$SOD\HUFDQVSHQGH[WUDPRQH\WRUHGXFHWKHWLPHRUVSHQGH[WUDWLPHWRUHGXFH
WKHPRQH\RQDWHQWKRXVDQGGROODUSHUKRXURUYLFHYHUVD

([DPSOH7KH$VVHPEO\0DQZDQWVWRPDNHDQRQFRUSRUHDOQHVVGHYLFH+HSRVVHVVHV
DOOWKHQHFHVVDU\NQRZOHGJHDUHDVGHHPHGE\KLV*0WRGRVR 3K\VLFVHOHFWURQLFV
H[WUDGLPHQVLRQDOSK\VLFV DQGKDVDQ,QWHOOLJHQFHRI+HUROOV,GEHFDXVHKHKDVDOO
WKHNQRZOHGJHWREXLOGWKLVJDGJHW
+HUROOVD +LVVXFFHVVLV
6RWKHGHYLFHFRVWV GROODUVDQGZLOOWDNHKRXUVKRXUV 
KRXUV

+HGRHVQ WKDYHWKHFDVKVRKHZLOOVSHQGDQRWKHUIRXUKRXUVZRUNLQJRQLW6RKHVSHQG
KRXUVZRUNLQJDQGVSHQWGROODUV+HWKHQUROOVDQGWKHJDGJHWZLOOZRUN
WLPHV


*UDYLW\ 3RZHUV   3U  YDULDEOH  7KH SRZHU VSHQW FUHDWHV D ZDUS RI WKH SRZHU VSHQW
VTXDUHG 7KH UDGLXV LV WKH VDPH DV WKH SRZHU VSHQW LQ PRYHPHQW SRLQWV ([ :DUS
:RPDQ VSHQGV  SRZHU 6KH FDQ FUHDWH D *UDYLW\ :DUS XS WR [J V ,W FDQ DIIHFW
DQ\RQH DUHD XS WR  PRYHPHQW SRLQWV $OVR DQ\RQH LQ D JUDYLW\ ZDUS DWWDFNHG E\
DQ\RQHRXWVLGHWKHZDUSJHWVDPLQXVWREHKLWRISHUJGLIIHUHQFH H[FHSWOLJKW 
*UDYLW\SRZHUKDVEHHQLQFUHDVHGGUDPDWLFDOO\LQP\JDPH.HHSLQPLQGWKDWWKLVLV
MXVWWKHDUHDWKDWFDQEHDIIHFWHG(DFKREMHFWRUSHUVRQPXVWEHKLWMXVWOLNHDUHJXODU
DWWDFN,IWU\LQJWRDIIHFWWKHHQWLUHDUHDWKHQXVHWKHEXUVWKRXVHUXOH,WODVWVDVORQJDV
WKHSOD\HUVSHQGVRQHDFWLRQSHUWXUQPDLQWDLQLQJWKHZDUS

+HLJKWHQHG$WWDFN7KHFKDUDFWHUUROOVG
<RXUERQXVLVZLWKRQHIRUPRIDWWDFN
<RXUERQXVLVZLWKRQHJURXSRIDWWDFNV
<RXUERQXVLVZLWKDQ\DQGHYHU\DWWDFN
7KHQWKHFKDUDFWHUGHFLGHVZKDWWKHERQXVLV,WFDQEHOHYHORQ
GDPDJHRUWRKLW

+HLJKWHQHG &RPEDW  7KH FKDUDFWHU JHWV D ERQXV RI  SHU OHYHO  7KLV ERQXV FDQ EH
DGGHGWRKLWWRGRGJHRUIRUGDPDJH7KLVFDQEHFKDQJHGRQDOHYHOE\OHYHOEDVLV

,FH3RZHUV7RFUHDWHLFHDUPRUWKHFKDUDFWHUPXVWVSHQGWKHLUPRYHPHQWSRLQWV7KLV
ORZHUVWKHLUPRYHPHQWE\WKHDPRXQWRIDUPRUJHQHUDWHG7REXONXSZLWKLFHPDNHV
RQHPRYHVORZHU$OVRHDFKSRLQWRI$'5FUHDWHGZHLJKVRQHSRXQG7KLVZLOOUHGXFH
\RXU DJLOLW\ IRU VDYHV DQG LQLWLDWLYH UROOV DQG FDUU\LQJ FDSDFLW\ $OVR WKH FOLQJLQJ LFH LV
RQO\OEVSHUSRLQW$QGWRPDNHDFOLQJDWWDFN\RXQHHGWRPDNHDFDOOHGVKRW

,OOXVLRQV 6ROLG ,OOXVLRQV 3U YDULDEOH  (DFK SRZHU VSHQW RQ WKH LOOXVLRQ LV VTXDUHG 
7KLVJLYHV\RXWKHVWUXFWXUDOUDWLQJRIWKHREMHFW6RLI\RXVSHQGSRZHUSRLQWV\RXU
VWUXFWXUDOUDWLQJLVZKLFKLVOEV,I\RXVSHQGSRZHUWKHQLWV[ 7KHILUVW
DFWLRQRIHYHU\WXUQPXVWEHXVHGWRPDLQWDLQWKHLOOXVLRQV)RUDQLPDWHLOOXVLRQVWKH
SOD\HUPXVWVSHQGWKHLUDFWLRQVWRPRYHWKHLUFUHDWLRQV

,QYLVLELOLW\ 3U  SHU KRXU 5HIOH[LYH WR DFWLYDWH 7KLV SRZHU JLYHV WKH FKDUDFWHU  WKHVH
EHQHILWV $  WR DQ\RQH WU\LQJ WR GHWHFW WKH FKDUDFWHU¶V VFRUH  EDVHG RQ VLJKW  ,W
DOVRJLYHVWKHLQYLVLEOHFKDUDFWHUDWREHKLW7KHUHDUHPDQ\RWKHUERQXVHVWKDWPXVW
EH WKRXJKW RXW RQ D FDVH E\ FDVH EDVLV  7R KLW DQ LQYLVLEOH FKDUDFWHU RQH PXVW KDYH D
JHQHUDO GLUHFWLRQ WR DLP WRZDUGV  $QG HYHQ WKHQ WKH\ VXIIHU WKH  WR KLW WKHP  $OVR
DQLQYLVLEOHFKDUDFWHULVLPPXQHWRPRVWODVHUDWWDFNVDVWKHODVHULVEDVHGRQOLJKWDQG
SDVVHVULJKWWKURXJKWKHP
)RUDGRXEOHGRVHRILQYLVLELOLW\DFKDUDFWHUFDQFKRRVHWREH³LQYLVLEOH´WRRWKHU
HOHFWURPDJQHWLFHQHUJLHV7KLVPHDQVWKDWWKH\FDQEHXQGHWHFWDEOHWRLQIUDUHGHOHFWULF
UDGLRHWF«

,QYXOQHUDELOLW\7KLVLVWKHVDPHEXW,DGGHG,QYLQFLELOLW\7KLVSRZHULVOLNH
LQYXOQHUDELOLW\EXWLWLVUHFRYHUHGE\SKDVHQRWSHUWXUQ,JLYHWKHSOD\HUVWKHFKRLFHRI
GLQYXOQHUDELOLW\RUG,QYLQFLELOLW\$OVRWKHUHLV,QGHVWUXFWLELOLW\ZKLFKJLYHV
\RXGSRLQWVSHU$77$&.

0DJLF6SHOOV6RUFHU\7KH0DJLFLDQPXVWEHDEOHWRWKLQNDQGFRQFHQWUDWH+HPXVW
WKLQNRIWKHHIIHFWKHZLVKHVWRHPSOR\DQGWKHQUROO,G6LQFHWKLVLVPDJLFWKH
PDJLFLDQQHHGQRWNQRZDQ\NQRZOHGJHDUHDV7KHQWKHPDJLFLDQUROOV:GWRPDNH
LWKDSSHQ7KHUHDUHQRERQXVDVWKHUHDUHLQ3FLRQLFVDVWKHPDJLFHLWKHUKDSSHQVRULW
GRHVQRW,IDLVUROOHGRQHLWKHUGLHUROOWRVXPPRQWKHHIIHFWWKHQD0DJLF%DFNODVK
RFFXUV7KLVXVXSWRWKH*0
:KHQWKHWZRUROOVDUHPDGHVXFFHVVIXOO\WKHQWKHHIIHFWKDSSHQV7KHGDPDJHLV
EDVHGRQWKHDFWXDOSRZHUFRSLHGRUGLIRQHFDQQRWEHVXEVWLWXWHG3RZHUFRVWLVDV
WKHSRZHUFRSLHGRULIQRSDUWLFXODUSRZHUFRXOGEHFRSLHG

7KLVLVLQWXLWLYHPDJLFDQGQRWVSHOOPDJLFDVLVPRUHFRPPRQ3HRSOHERUQZLWK
LQWXLWLYH6RUFHU\ZHUHFRPPRQO\UHIHUUHGWRDVZLWFKHVRUZDUORFNV6RPHWLPHVWKH
ZLWFKRUZDUORFNGLGQ WHYHQUHDOL]HWKDWWKH\ZHUHWKHRQHVFDXVLQJWKHKH[HVWRKDSSHQ
5DQJHLVDVWKHSRZHUFRSLHGRU,[&[/HYHOLIXQNQRZQ

0LQG&RQWURO$6XJJHVWLRQ3U SHUXVH7KLVSRZHUFDQLQIOXHQFHDWDUJHWWRGR
VRPHWKLQJWKDWWKH\GLGQ WZDQWWRGR7KLVODVWVRQHDFWLRQ$IWHUWKH\SHUIRUPWKH
DFWLRQWKH\FDQVDYH,GSHUWXUQWRUHDOLVHWKDWWKH\KDYHDFWHGRGG7KLQNRIWKLVDV
WKH-HGL0LQG7ULFN
7KHSROLFHFRPHXSWR0U0LQGDQGDVNKLPIRU,'0U0LQGXVHVKLVSRZHURI
VXJJHVWLRQDQGKLWV7KHSROLFHPDQWKLQNVWRKLPVHOIWKDWDOOLVRNDQGOHDYHV0U0LQG
ZDONVDZD\$IHZPLQXWHVODWHUWKHFRSUHDOLVHVWKDWKHQHYHUVDZWKDWVWUDQJHPDQLQ
WKHEODFNUREHVLGHQWLILFDWLRQ

0LQG&RQWURO%&RQWURO3U SHUXVH7KLVSRZHUFDXVHVWKHWDUJHW VPLQGWREH


RYHUZKHOPHG7KH\KDYHWRGRDVWKHDWWDFNHUFRPPDQGV7KH\DUHVWUXJJOLQJDVWKH\
NQRZWKDWZKDWWKH\DUHGRLQJLVQRWRIWKHLURZQZLOOVRDOOOHYHOERQXVDUHJRQHDQG
PRVWVDYHVDUHDVIDWLJXHG XQOHVVLWVVRPHWKLQJWKHWDUJHWZDQWVWRGR 7KH\VDYH
:GSHUWXUQRUZKHQFRPPDQGHGWRGRVRPHWKLQJWKH\DUHDGDPDQWO\RSSRVHG
WRGRLQJ$OOLHVFDQWU\WRWDONWKHPRXWRILW:KHQWKH\GRWKLVWKH\FDQDGGWKHLU
&KDULVPDVFRUHWRWKHWDUJHW VZLOOVFRUHIRUWKHQH[WVDYH,IWKHDWWDFNHUUROOVDQDWXUDO
ZKHQWKH\DWWDFNWKHWDUJHWLVWRWDOO\FRQWUROOHGVRWKH\ZLOOQRWUHVLVWQRUPDNHVDYHV
XQOHVVWDONHGRXWRILW

0LQG&RQWURO&'RPLQDWLRQ3U 2QDKLWWKHWDUJHWLVWRWDOO\FRQWUROHGE\WKH
DWWDFNHU(YHU\WKLQJIHHOVULJKWDQGQDWXUDODQGDQ\FRPPDQGZLOOEHREH\HGZLWKRXW
TXHVWLRQDQGZLWKRXWVXERUGLQDWLRQ7KH\VDYHRQFHSHUKRXU:G
0XWDQW3RZHU6XSHU7KLVSRZHULQFUHDVHVDVHFRQGDU\FKDUDFWHULVWLFWRQHDULQILQLWH
OHYHOV6RLIDFKUDFWHUSLFNV6XSHU6WUHQJWKWKHQWKHLUFDUU\LQJFDSDFLW\ QRWKLWVQRW
+7+ LQFUHDVHVWR6XSHU/HYHOV7KDWPHDQVWKH\KDYHHQRXJKWVWUHQJWKDVLVUHTXLUHG

7KHDLUSODQHLVIDOOLQJRXWRIWKHVN\"$FWLYDWH\RXU6XSHU6WUHQJWKDQG\RXFDQFDWFKLW
DQGEULQJLWWRVDIW\
1HHGWRRXWUDFHDOLJKWLQJEROW":LWK6XSHU6SHHG\RXZRXOGEHDEOHWRZLWK
QDQRVHFRQGVWRVSDUH

1RWHWKDW\RXGRQ WLQFUHDVH\RXUVWDWV \RXUVWUHQJWK,QWHOOJHQFHDJOLW\HQGXUDQFHRU


FKDULVPD \RXLQFUHDVHWKHLUVHFRQGDU\FKDUDFWHULVLFV

<RXFDQVXSHU\RXUPRYHPHQWUDWH PRYHDWLQILQWHYHORFLW\ \RXULQLWLDWLYH\RXU


FDUU\LQJ\RXULQYHQWLQJFKDQFH\RXUKHDOLQJ

,ZRXOGVD\WKDWWKLVJUHDWSRZHUZRXOGFRVWDERXWSRZHUDQGODVWIRURQHWXUQOLNH
HYDVWLRQ
1HHGWRDUPZUHVWOH+HUFXOHVVXSHUVWUHQJWK
1HHGWRRXWGUDZ0HUFXU\VXSHULQLWLDWLYH
1HHGWRKHDOVXSHUKHDOLQJ RQHKHDOLQJUDWHSHUSKDVH
1HHGWRIO\WRWKHRWKHUVLGHRIWKHJDOD[\VXSHUVSHHG DVDSSOLHGWRDPRYHPHQWUDWHLQ
WKLVFDVHIOLJKW
1HHGWRLQYHQWWKH8OWLPDWH1XOOLILHU"6XSHULQYHQWLQJ \RXUSHUFHQWDJHWRLQYHQWZRXOG
MXPSWRLQILQLW\
:DQWWRZRZWKHZRUOG"6XSHU5HDFWLRQ
:DQWWRKHDUZKDWWKH\DUHVD\LQJLQ$QWDUWLFD"6XSHU'HWHFW+LGGHQ

7KLVSRZHUVKRXOGEHH[WUHPO\UDUHDQGRQO\JLYHQWRSOD\HUVZLWKVWURQJUROHSOD\LQJ
VNLOOVDQGDYHU\JRRGFRQFHSW
7KHSOD\HUDQG*0ZRXOGKDYHWRSLFNZKDWWKHLUSDUWLFXODU6XSHUPRGLILHULV2QH
SRZHUPHDQVRQO\RQHWKLQJFDQEH6XSHUVRWKH\SLFN6XSHU6SHHG6XSHU6WUHQJWK
6XSHU5HIOH[HV\RXJHWWKHSRLQW

8QOHVVWKH\KDYHWKHYDULDQW

0XWDQW3RZHU6XSHU%6DPHDVDERYHEXWWKH\FDQFKDQJHZKDWLVVXSHUZLWKHDFKXVH
7KLQNRI8OWUD%R\IURPWKH/HJLRQRI6XSHU+HURHV

0XWDQW3RZHU3RO\PDWK3RO\PDWKVOHDUQIDVWHUDQGNQRZPRUHWKLQJVWKDQQRQ
SRO\PDWKV&RPLFVDUHOLWWHUHGZLWKVFLHQWLVWVWKDWLQVKRUWWLPHVPDVWHUPDQ\YDULHG
DUHDVRIH[SHUWLVH$SRO\PDWKJDLQHVLQYHQWLQJSRLQWVDWGRXEOHWKHQRUPDOUDWHIRUQRQ
SRO\PDWKVDQGWKHIUDFWLRQLVURXQGHGXSIRUWKH\KDYHQRSDUWLDOLGHDV
([DPSOH0U0LQGJRHVWRVHFRQGOHYHO+HKDVDQLQWHOOJHQFHRI6RKHZRXOG
QRUPDOO\JHWLQYHQWLQJSRLQWVEXWKHLVDSRO\PDWK+HJHWVGRXEOHVRLQVWHDGKHJHWV
EXWWKHLVURXQGHGXSVRKHJHWVDWRWDORILQYHQWLQJSRLQWV%R\0U0LQGLVRQH
TXLFNOHDUQHU

0XWDQW3RZHU0LPLFU\7KHVXSHUEHLQJFDQFRS\DQ\VXSHUSRZHU7KHSRZHUFRSLHG
LVRQHKDOIDVSRZHUIXODVWKHRUJLQDO7KH\FDQRQO\FRS\SRZHUVWKDWDUHZLWKLQ([
IHHWRIWKHP7KH\FDQFRS\DVPDQ\SRZHUVDVWKHLU(VFRUHGLYLGHGE\WKUHH

3DUDO\VLV5D\3U WDNHVGPRGLILHUVRIIRIWDUJHWVPRYHPHQWDQGLQLWLDWLYH,I
LQLWLDWLYHLVUHGXFHGWR]HURWDUJHWFDQQRWDFW

3VLRQLFV7KHVHDUHDIHZLGHDVIRUWKLVZLOGFDUGSRZHU
+HDW6XEWUDFWLRQ3U SHUXVH7KLVGRHVGGDPDJHDVLFHSRZHUV
DVLWUHPRYHVKHDWIURPWKHWDUJHW,WHIIHFWLYHO\UHPRYHVNLQHWLFHQHUJ\IURPWKH
VXEMHFW7KLVFDQWHPSRUDOO\UHGXFHDWDUJHWVVWUXFWXUDOUDWLQJ+RZHYHULWFDQQRW
EHXVHGWRFUHDWHLFHDPRXURUREMHFWVLWLVQRW,FHSRZHU,WVLPSO\UHPRYHVNLQHWLF
HQHUJ\ KHDW IURPWKHVXEMHFW$VDGHIHQVHWKLVSRZHUWDNHVRQHDFWLRQWRVHW
XSDQGWKHQLWFRVWVILYHSRZHUSHUDWWDFN,WUHGXFHVWKHGDPDJHWKHDWWDFNGRHVE\
G,WVXFNVXSWKHNLQHWLFHQHUJ\RIWKHDWWDFNPDNLQJLWOHVVSRZHUIXO

,QVWLOO9HORFLW\7KHSOD\HUDGGVIRFXVHGNLQHWLFHQHUJ\LQWRDWDUJHWFDXVLQJ
LWWRLQVWDQWO\DFFHOHUDWHWRWKHVSHHGWKHSOD\HUGHVLUHV)RUHYHU\SRZHUVSHQWWKH
WDUJHWJDLQVPRYHPHQWSRLQWVRIYHORFLW\$WWDFNVDVYLEUDWRU\

7KH3RZHU&RVPLF7KHFKDUDFWHUFDQGRZKDWHYHUWKH\FDQLPDJLQH,Q
RUGHUWRGRWKLVWKH\PXVWUROO,GWRSURSHUO\LPDJLQHWKHHIIHFW,GLIWKH\KDYH
WKHSURSHUNQRZOHGJHWRKHOSWKLVRXW7KHQWKH\PXVWPDNHDVXFFHVVIXOVDYHRQ
:GWRPDNHLWKDSSHQ7KHQXPEHURIVXFFHVVHV WKHDPRXQW\RXUROOHG81'(5
\RXU:LOO LVXVHGDVDWRKLW7KHQXPEHURIIDLOXUHV WKHQXPEHU$%29(\RXU
ZLOOVFRUH LVXVHGDVDPLQXV,IDLVUROOHGRQWKLVUROOWKHUHLVDEDFNILUH7KDW
LVXSWRWKH*0
,I\RXPDNHERWKVDYH\RXSURSHUO\LPDJLQHGWKHHIIHFWDQGPDGHLWKDSSHQWKHQ
\RXPXVWUROOWRKLW7KHFROXPQ\RXXVHGLVEDVHGRQWKHHIIHFW7KDWPHDQVLI\RX
ZDQW\RXUIRHWREXUVWLQWRIODPHV\RXUROODVIODPHSRZHUV,I\RXZDQW\RXUIRHWR
EHFRPHVXSHUKHDY\\RXUROOYVJUDYLW\

7KHUDQJHLV,[:[/HYHODQGWKHGDPDJHLVG7KHSRZHUFRVWLVWKHVDPHDVWKH
SRZHUEHLQJFRSLHG

0HQWDO%ODVW3U DVPLQGFRQWURO7KHDWWDFNHUUROOV,G7KHORZHUWKH
EHWWHU7KHGDPDJHLVHTXDOWRKRZIDUWKHGLVIURPWKHFKDUDFWHU¶V,QWHOOLJHQFH
([0U%UDLQKDVDQ,RI+HVKRRWV'XQGHU0DQDQGKLWVZLWKDPHQWDOEODVW
0U%UDLQUROOVGDQGJHWVDWHQ7KLVLVXQGHUKLV,QWDQGGRHVSRLQWVRI
GDPDJH

&\EHU(PSDWK\7KLVSRZHUHQDEOHVWKHFKDUDFWHUWRFRQWUROFRPSXWHUVDQG
HOHFWURQLFVZLWKWKHLUPLQG7KH\FDQGRPDNHDQHOHFWURQLFGHYLFHGRDQ\WKLQJWKDW
WKH\FDQQRUPDOO\GRYLDPHQWDOFRQWURO,WVPRUHWKDQ/LJKWQLQJ&RQWUROWKDWMXVW
PDNHV79VJRRQDQRII$&\EHUSDWKFDQRYHUULGHSURJUDPVVHHWKURXJKFDPHUDV
HUDVHYLGHRUHSURJURJUDPURERWVHWF3U SHUXVH5DQJHHTXDOV,LQFKHV$WWDFNV
DVOLJKWLQJFRQWURO(DFKWLPHWKHSOD\HUPDNHVDQHOHFWURQLFGHYLFHGRVRPHWKLQJ
WKH\PXVWUROOWKHLU,G,IWKH\KDYHNQRZOHGJHLQFRPSXWHUVSURJUDPLQJ
HOHFWURQLFVHWFWKHQWKHUROOLV,G

7HOHPHFKDQLFV3U SHUOEVRIPDFKLQHU\FRQWUROOHGSHUWXUQ$WWDFNVDV
WUDQVPXWDWDLRQ7KH&KDUDFWHUFDQFRQWUROPHFKDQLFDOGHYLFHVDQGHYHQWUDQVIRUP
WKHPDWZLOO7KH\FDQPDNHDFDUWUDQVIRUPLQWRDURERWDQGILJKWIRUKLP7KHSOD\HU
PXVWXVHWKHLUDFWLRQVWRDQLPDWHWKHFRQWUROHGPDFKLQHU\DQGLWILJKWVDVWKHP7R
PDNHWKHREHFWPRYHIRUWKHILUVWWLPHWKHSOD\HUPXVWUROO$G7RWUDQVIRUPLW
WKH\PXVWUROO,G5DQJHLV: ZLOO LQFKHV

5HJHQHUDWLRQ<RXUHJHQHUDWHRQFHDWXUQDWWKHEHWZHHQWXUQVSKDVH
DXWRPDWLFDOO\IRUQRSRZHUFRVW2WKHUWKDQWKDWLWVWKHVDPH6RZKHQ\RXUHUROO
\RXULQLWLDWLYHVSHQGIRUZLOOSRZHUHWF\RXJHW\RXUUHJHQHUDWLRQERQXV

5HYLYLFDWLRQ0RVWO\WKHVDPHEXWUHVWRUHGFKDUDFWHUVJHWKLWVDQGSRZHU7KH\
DUHH[WUHPHO\IUDJLOHDIWHUFRPLQJEDFN5HVWRUHGFKDUDFWHUVORVHRQHOHYHORQHSRLQW
RIHQGXUDQFHDQG$//WKHLUH[SHULHQFHSRLQWV$Q\FKDUDFWHUDWILUVWOHYHORUDW
HQGXUDQFHSRLQW&$1127EHUHYLYHG3RZHUFRVWLVSRZHUSHUSRLQWWKDWLW
DFWXDOO\ZRUNV

6WUHWFKLQJ3RZHUV.HHSLQPLQGWKDWWKHUHLVD]HURLQWKHGHIHQVHFROXPQDJDLQVW
+7+<RXVWLOOQHHGWREHDZDUHRIWKHDWWDFNWRVSHQGWKHSRZHUWRDFWLYDWHWKH
GHIHQVH$QGLWVRQHSRZHU3(5DWWDFN<RXFDQVWUHWFK\RXUERG\WRPDNHLWHDVLHU
WRKLWDWDUJHW<RXFDQJHWDERQXVRIWRKLWSHUVDFULILFHRIGDPDJH

7HOHNLQHVLV6DPHDVUXOHVEXW\RXFDQPDNHLWEDVHGRQWKH:LOODWWULEXWH$OVR
WKHGHIHQVHLVQRZPRUHUREXVW7KHFKDUDFWHUFDQXVH7.WREORFNHDFKDWWDFNDQG
VXEWUDFWGDPDJHIURPHDFKDWWDFNDVWKH7.VDSVWKHDWWDFNRILW¶VSRZHU7KLVLVOLNH
SXWWLQJXSDPHQWDOEDUULHUWKDWWKHDWWDFNPXVWJHWWKURXJKWRKLWWKHFKDUDFWHU<RX
VXEWUDFWGDPDJHIURPHDFKDWWDFNEDVHGRQWKH7.FDSDFLW\WKHFKDUDFWHUKDV)RU
H[DPSOHHDFKDWWDFNWDNHVD7.EODVWWRUHGXFHWKHGDPDJH$WWDFNVDIIHFWHGDUHDW
*0¶VGLVFUHWLRQ

7HOHSDWK\DVUXOHVEXWZLWKERQXVHVIURPWUDLQLQJRULQYHQWLQJ7RUHDGDPLQGD
WHOHSDWKPXVWILUVWPDNHFRQWDFW7KH\QHHGWRUROO,G,IWKH\VXFFHGWKHQWKH\
PDGHFRQWDFW2QFHFRQWDFWLVPDGHWKH\FDQUHDGWKHVXUIDFHWKRXJKWV,IDSHUVRQ
UHVLVWVFRQWDFWWKHQLW¶VWKHWHOHSDWK¶V,GYVWKHUHVLVWRU¶V:G7RGRD³WKRXJKW
VFDQ´RUWRVHHKRZPDQ\PLQGVDUHLQDQDUHDWDNHVDQDFWLRQDQGWKHWHOHSDWKPXVW
UROO,G$OOWKLVGRHVLVWHOOWKHWHOHSDWKKRZPDQ\PLQGVDUHLQDQDUHD7RSUREH
DWDUJHWWKHWHOHSDWKPXVWDOVRUROO,GYVWKHWDUJHW¶V:G7KHEHWWHUWKHVXFFHVV
WKHPRUHLQIRUPDWLRQLVJRWWHQ$WHOHSDWKFDQWUDLQLQWHOHSDWK\RUXVHDQLQYHQWLQJ
SRLQWWROHDUQRWKHUWHOHSDWKLFGLVFLSOLQHV-XVWDVDVSHOOFDVWHUFDQPDNHVSHOOVD
WHOHSDWKFDQFUHDWHSVLRQLFDELOLWLHVEDVHGRQWKHLGHDWKDWWKH\FDQUHDGDQGVHQG
WKRXJKWVWRRWKHUPLQGV6RPHVDPSOHVRIGLVFLSOLQHVDUH$OOWKHVHFRVWSRZHU

0HPRU\%DQN$SHUVRQ¶VEUDLQFDQEHXVHGDVDQLQIRUPDWLRQGXPS7KH
WHOHSDWKPXVWWRXFKWKHWDUJHW7KHPHPRULHVDUHVWRUHGLQDVHFXUHSODFH
ZLWKLQWKHWDUJHWVPHPRU\7KHWDUJHWZLOOQRWNQRZWKHLQIRUPDWLRQQRUEH
DEOHWRDFFHVVLW$WHOHSDWKPXVWPDNHDVXFFHVVIXO,GUROOWRGRWKLV(DFK
QXPEHUWKDWKHUROOVORZHUWKDQKLVLQWHOOLJHQFHRQDGLVKRZPDQ\PRQWKV
WKHPHPRU\EDQNZLOOVWD\VHFXUH

)DOVH0HPRULHV$WHOHSDWK\PD\ZHDYHIDOVHPHPRULHVLQWRDWDUJHW
7KLVLVKDUGWRGR8VXDOO\DQLQYHQWLQJSRLQWPXVWEHVSHQWE\WKHWHOHSDWK
WRFRPHXSZLWKDJRRGVWRU\7KHQWKHWDUJHWLVWRXFKHG$QLQWHOOLJHQFH
VWUXJJOHLVUROOHG%RWKWHOHSDWKDQGWDUJHWPXVWUROO,G,IWKHWDUJHWKDVD
EHWWHUUROOLWGRHVQ¶WZRUN,IWKHWHOHSDWKKDVDEHWWHUUROOWKHQHDFKSRLQW
ORZHUWKDQWKHUROOQHHGHGDOWHUVRQHHYHQWRIPHPRU\

(UDVH0HPRULHV$VDERYHEXWPHPRULHVDUHHUDVHG7KH\FDQEHUHVWRUHGE\
PDNLQJDVDYH,GSHU\HDURUE\SV\FKLFVXUJHU\

3V\FKLF6XUJHU\WKHWHOHSDWKUROOV,G,IWKHUROOLVXQGHUWKHWHOHSDWK¶V
LQWHOOLJHQFHWKHQWKHVXUJHU\LVDVXFFHVV7KHWHOHSDWKFDQXQGRIDOVH
PHPRULHVHUDVHGPHPRULHVSKRELDVPRVWPHQWDOGLVRUGHUVHWF,IWKHUROO
IDLOVE\XSWRQRWKLQJKDSSHQV,ILWIDLOVE\XSWRWKHWDUJHWORRVHV
GLQWHOOLJHQFHSRLQWV,ILWIDLOVE\RUPRUHWKHWDUJHWLVUHGXFHGWR
LQWHOOLJHQFH2IFRXUVHDWDUJHWFDQUHVLVWWKHVXUJHU\,IWKH\GRVRWKH\
UROO,G7KHWDUJHWPXVWEHHLWKHUZLOOLQJRUQRWDEOHWRPHQWDOO\UHVLVW$
GUXJJHGWDUJHWPDNHVLWPRUHGLIILFXOWDVWKHLPDJHVDUHGLVWRUWHG(DFK
XVHRIVXUJHU\UHTXLUHVDQLQYHQWLQJSRLQW

0HQWDO5HIOH[HV3U SHUWXUQSHUWDUJHW7KHWHOHSDWKFDQUHDGDSHUVRQ¶V
PLQGDQGVHHZKDWWKH\DUHJRLQJWRGRLQFRPEDW7KHWHOHSDWKWKHQJDLQVD
WRKLWHTXDOWRWKWKHLULQWHOOLJHQFHDQGD±WREHKLWRIWKHVDPHQXPEHU
$OVRWKHVHERQXVHVFDQEHVZLWFKHGDURXQGGXULQJWKHWHOHSDWK¶VDFWLRQSKDVH
DWZLOOEXWWKH\VWD\WKDWZD\XQWLOWKHLUQH[WDFWLRQSKDVH

'LVWUDFWLRQ$WHOHSDWKFDQGLVWUDFWDWDUJHWRUWDUJHWVE\VHQGLQJWKHP
WKRXJKWVWKDWHLWKHUVSRRNWKHPRULQWHUIHUHZLWKFRQFHQWUDWLRQ7KH\FDQ
DIIHFWDVPDQ\WDUJHWVDVWKH\KDYHLQWHOOLJHQFHSRLQWV(DFKWDUJHWDIWHUWKH
ILUVWUHGXFHVWKHWHOHSDWK¶VLQWHOOLJHQFHIRUSXUSRVHVIRUWKHVNLOOUROOV7KH
WHOHSDWKFDQEDUUDJHWKHWDUJHWZLWKWKRXJKWVWKDWLQWHUIHUHUZLWKWKHWDUJHWV
DELOLW\WRDLPDQGFRQFHQWUDWH7KHUHVXOWLVWKDWWKHWDUJHWFDQJHWPLQXVHV
RQWKHLUWRKLWUROOV7KHWHOHSDWKDQGWDUJHWERWKUROO,G7KH\DGGXSKRZ
PXFKWKH\UROOHG81'(5WKHLULQWHOOLJHQFH,IWKHWHOHSDWKUROOHGZHOOWKHQ
WKHWDUJHWKDVDPLQXVRIWKHGLIIHUHQFHLQWKHWZRQXPEHUV5HPHPEHUWKH
WHOHSDWK¶V,QWHOOLJHQFHLVORZHUHGE\RQHIRUHDFKSHUVRQDIWHUWKHILUVW,WWDNHV
RQHDFWLRQWRGRWKLVSHUWXUQ([DPSOH0U%UDLQWULHVWRGLVWUDFWIRXUQLQMDV
+HZRQLQLWLDWLYHDQGKHVHQGVDQRQVODXJKWRIWKRXJKWVLQWRWKHLUPLQGV
+HUROOV,G+HUROOVDQLQH+LVLQWHOOLJHQFHLVVRKHVXFFHHGHGE\
7KHQLQMDVDUHJRRQVDQGDOOKDYHWKHVDPHVWDWV7KH\UROOHGDDQGKDYH
LQWHOOLJHQFHVRI7KH\DOOVXFFHHGHGE\6R0U0LQGVEHDWVWKHPZLWK
D+RZHYHUWKHUHDUHIRXUJX\VVR0U0LQGJHWVDSHQDOW\RIPLQXV
EHFDXVHLW¶VKDUGWRGRWKLVWRPRUHSHRSOHWKDQRQH6RDOOWKHQLQMDVVXIIHUD
±WRKLW

0HWD:KLS7KLVLVDUHDOO\GDQJHURXVSRZHU7KHWHOHSDWKFDQFORVHWKHZDUS
WKDWFKDQQHOVWKHZRUPKROHWKDWIHHGVWKHPHWDSRZHUVWRWKHWDUJHW7KLV
UHTXLUHVSK\VLFDOFRQWDFW%RWKWKHWHOHSDWKDQGWKHWDUJHWVDYH,G7KH
WDUJHWVVXFFHVVHVWDNHDZD\WKHWHOHSDWK¶VVXFFHVVHV,IWKHWHOHSDWKKDVDQ\
VXFFHVVHVOHIWDIWHUWKLVWKHQWKHWDUJHWORRVHVKLVSRZHUIRUDVPDQ\GD\VDV
WKHWHOHSDWKKDVVXFFHVVHV

7HOHSDWKLF7XWRU7KH7HOHSDWKFDQWXWRUDQ\ZLOOLQJWDUJHWLQDQ\NQRZOHGJH
DUHDWKH\SRVVHVV7KHWDUJHWPXVWEHLQFRQWDFWZLWKWKHWHOHSDWK5ROO,
',IWKHUROOLVDQDWXUDOWZHQW\WKHQWKHWDUJHWORRVHVDQLQYHQWLQJSRLQW
ZLWKQRWKLQJOHDUQHG,IWKHUROOXVDVXFFHVVWKHQWKHWDUJHWOHDUQVRQH
NQRZOHGJHDUHDIURPWKHWHOHSDWK7HOHSDWK¶VFKRLFH7KHWDUJHWFDQVSHQG
DQLQYHQWLQJSRLQWRIKLVRZQWRNHHSWKLVLQIRUPDWLRQSHUPDQHQW,IWKH
WDUJHWGRHVQRWVSHQGWKHSRLQWWKHQWKHLQIRUPDWLRQLVRQO\VKRUWWHUPDQG
VWD\VZLWKWKHPIRURQHKRXUSHUSRLQWRILQWHOOLJHQFHWKHWDUJHWKDV'XULQJ
WKLVWLPHGRWRLQIRUPDWLRQRYHUORUGDOO,VDYHVDUHSHUNQRZOHGJHDUHD
MDPPHGLQWRWKHVKRUWWHUPPHPRU\

7HOHSRUWDWLRQ0RVWO\WKHVDPH$IHZDGGHGH[SODQDWLRQV,IWKHSRUWDOLVXVHGDVDQ
DWWDFNWKHWDUJHWJHWV$GWRMXPSDZD\,IWKHHGJHVRIWKHSRUWDODUHWRXFKHGWKH
SRUWDOLVGHVWUR\HGOLNHDVRDSEXEEOH,IWKHFKDUDFWHUWULHVWRWHOHSRUWDWDUJHWDZD\
SLHFHPHDOWKHQWKHWDUJHWLVVXEMHFWWRDWUDQVPXWDWLRQDWWDFNZLWKWKHGDPDJHHTXDO
WRWKHFDUU\LQJFDSDFLW\RIWKHWHOHSRUWHU8VHWKH%UDZOLQJZHDSRQVFKDUWWRILQGWKH
GDPDJH2QO\WKHGDPDJHGWDNHQUHIOHFWVZKDWZDV7HOHSRUWHG(;7KH%DPIHU
WULHVWRVHQGDGHPRQDZD\7KH%DPIHUJUDEVWKHGHPRQDQGWHOHSRUWVDZD\6LQFH
WKLVZDVDQDWWDFNXVHRIWHOHSRUWDWLRQDQGQRWDIXOOWHOHSRUWWKHGHPRQLVVXEMHFWWR
DFDUULHUDWWDFNRIWUDQVPXWDWLRQ$KLWLVVFRUHGDQGWKHGDPDJHLVUROOHG%DPIHU
LQIOLFWVGDPDJHWRWKHGHPRQDVVRPHRIKLVPDVVLVULSSHGDZD\IURPKLP
7KH'HPRQUROOVZLWKLWDQGRQO\WDNHVGDPDJH+HODXJKVDVRQO\DIHZDUP
KDLUVYDQLVKHGDZD\ZLWKWKH%DPIHU6RPHFKDUDFWHUVZLWKH[WUDGRVHVRUWKRXJK
WHFKQRORJ\PD\GHYHORSWHOHSRUWDWLRQDVDUDQJHGDWWDFN7HOHSRUWDWLRQDWWDFNVDV
WUDQVPXWDWLRQDVLWKDVWRZLWKUHDUUDQJLQJPROHFXOHV$Q\WKLQJWHOHSRUWHGLQWRD
OLYLQJEHLQJFDXVHVGDPDJH)RUHDFKOEVRIPDWWHUWHOHSRUWHGLQWRDOLYLQJEHLQJ
WKH\WDNHGGDPDJH7KLVLV[&ULWLFDO$VSHFLDODWWDFNLVQHHGHGWRGRWKLV
7UDQVIRUPDWLRQ7KHVKDSHFKDQJLQJDVSHFWRIWKLVSRZHUQHHGHGVRPHZRUNVRWKHUH
DUHVRPHQHZUXOHV,QPRVWFDVHVWRXVHWKLVSRZHUWKHSOD\HUPXVWVXFFHHGRQDQ
LQWHOOLJHQFHUROOGWRPDNHWKHWUDQVIRUPDWLRQEHOLHYDEOH,IWKLVSRZHULVUROOHG
RQFHWKHQWKH\JHWW\SHLIWZLFHW\SHDQGVRRQ
 'LVJXLVH7KHSOD\HUFDQDOWHUWKHLUDSHDUHQFH0XVWEHDSUR[LPHWO\WKHVDPHVL]H
DQGVKDSH
 6KDSH&KDQJH7KHSOD\HUFDQDOWHUWKHLUERG\GUDVWLFDOO\.HHSLQPLQGWKDW
WKHLUZHLJKWVWD\VWKHVDPH7KH\DUHMXVWVKLIWLQJWKHLUPDVV7KH\FDQWDNH
WKHIRUPRIZKDWHYHUWKH\ZDQWNHHSLQJLQPLQGWKHODUJHUWKH\JHWWKHPRUH
SLOORZ\WKH\PD\JHW:LWKWKLVSRZHUFRPHERG\SRZHUVPD\EHPLPLFNHGDW
RQHWKLUGWKHLUVWUHQJWK
 7UDQVIRUPDWLRQ7KHSOD\HUFDQWUDQVIRUPLQWRZKDWHYHUWKH\DUHWU\LQJWR
EHFRPH7KH\PXVWWRXFKWKHLUWDUJHWRUKDYHVRPH'1$RUVRPHWKLQJWKDWZLOO
DOORZWKHLUERG\WRPDNHWKLVWUDQVIRUPDWLRQ7KH\GRQ¶WMXVWORRNOLNHDGUDJRQ
WKH\EHFRPHDGUDJRQ7KLVSRZHUVKRXOGEHUDUHDQGJLYHQWRSOD\HUVZLWK
VWURQJUROHSOD\LQJVNLOOV



7UDQVPXWDWLRQVDPHDVWKHUXOHVEXWLWRQO\IXOO\WUDQVIRUPVDOLYLQJWKLQJZKHQDOO
LWVEDVLFKLWVJHWVFKDQJHG6WUXFWXUHVDUHFKDQJHGSLHFHPHDO([7UDQVPXWREODVWV
0HWD0DQZLWKDWUDQVPXWDWLRQUD\+HKLWVDQGUROOVGDPDJH0HWD0DQ¶V
LQYXOQHUDELOLW\GHDOVZLWKWHQDQGKHUROOVZLWKVHYHQPRUH6RKHRQO\WDNHV
GDPDJH7KLVLVQRZKHUHQHDUHQRXJKWRWXUQKLPWRVWRQHVRDOOWKDWKDSSHQHGZDV
VRPHKDLURQKLVDUPVWXUQWRVWRQHDQGIDOORII

:HDWKHU&RQWURO6DPHDVWKHUXOHVZLWKVRPHVPDOOFKDQJHV$OVRZHDWKHUFRQWURO
FDQDIIHFWKXPLGLW\WHPSHUDWXUHDQGDLUSUHVVXUH$LUSUHVVXUHFDQEHFKDQJHGXS
WRRQHWHQWKWKHFKDUDFWHU¶V6WUHQJWKLQ$WPRVSKHUHV7KLVFDQEHPDLQWDLQHGDW
SRZHUSHUWXUQ7HPSHUDWXUHFDQEHORZHUHGRUUDLVHGGHJUHHV)SHUSRZHUSRLQW
SHUWXUQ5DQJHLV¶SHUOHYHO7RWDUJHWDQLQGLYLGXDOUHTXLUHVDVSHFLDODWWDFN
$OVRGXHWKHDGYHUVHZHDWKHUHYHU\RQHDIIHFWHGE\WKHZHDWKHUQRWMXVWXQGHUDWWDFN
VXIIHUVDPLQXVWRWKHLUDWWDFNVDQGGHIHQFHVHTXDOWRWKHSRZHUQHHGHGWRFUHDWHWKH
ZHDWKHU3HQDOW\LVWKHEDVHEHIRUHPRGLILHGWRUHGXFHWKHSRZHUFRVW

:LOOSRZHU7KLVSRZHUFDQEHXVHGWRFRQWUROHYHU\DVSHFWRIWKHFKDUDFWHU¶VERG\
,WFRVWSRZHUSHUWXUQSHUXVHRIZLOOSRZHU6RLIDFKDUDFWHUZLVKHVWRXVHLWWR
PDLQWDLQFRQFHQWUDWLRQDQGXVHLWWRKROGWKHLUEUHDWKWKHQLWFRVWVSRZHUSRLQWVSHU
WXUQ

:LQJV7KLVSRZHULVWKHVDPHEXWWKHZLQJVSDQLVIHHWWLPHVWKHEDVLFKLWRIWKH
FUHDWXUHZLWKWKHZLQJV,IWKH\ZDQWWKHPVPDOOHUWKHQWKHIOLJKWVSHHGLVUHGXFHG
E\WKHVDPHSHUFHQWDJHDVWKH\UHGXFHWKHZLQJV$OVR3U SHUWXUQQRWSHUKRXU
:HDNQHVVHV

/RZ6HOI&RQWURO%HUVHUNHU5DJH(YHU\WLPHDSOD\HUZLWKWKLVZHDNQHVVJHWVKLW
WKH\PXVWVDYH:GRUIO\LQWRDEHUVHUNHUUDJH)RUHYHU\SRLQWRIGDPDJHWKH\
KDYHWDNHQWKDWWXUQIURPKLWSRLQWVRQO\QRWZLWKWKHGDPDJHWKH\UROOHGZLWKWKH\
JHWDRQWKHLU:LOOIRUWKLVUROO
,IWKH\IDLOWKH\DUHEHUVHUN7KLVPHDQVWKH\ORVHDOO VWRKLW7KH VDUH
FRQYHUWHGWRGDPDJH6RWKH\ORVHDOOWKHLUOHYHODQGVWDWV,IWKH\ZRXOGKDYHJRWWHQ
DWRKLWWKH\ORVHWKDWEXWJHWDWRGDPDJH7KH\DUHORVLQJWKHLUDGYDQWDJH
IURPVNLOOH[SHULHQFHDQGVXFK%XWWKH\DUHJDLQLQJGDPDJHLQIHURFLW\
7KH\UHWDLQVRPHSOXVHVOLNHWKHSOXVIURPWDORQVRUWKLQJVOLNHLWRUWKHLU
ZHDSRQV7KH\ZLOOQRWKROGEDFNZLOOILJKWLQJQRUZLOOWKH\KROGWKHLUDFWLRQV
7KH\ZLOOILJKWWRWKHEHVWDQGPRVWGDQJHURXVZD\WKH\FDQ7KH\ZLOOQRWHYDGHRU
FDOOVKRWVRUWU\WRVWXQ:HDUHWDONLQJEUXWDOFDUQDJHKHUHIRONV
$OVRWKH\DUHQRWWRRFRQFHUQHGDERXWSHUVRQDOVDIHW\DVZHOO$Q\PLQXVHVWR
EHKLWGXHWRVNLOOVRUH[SHULHQFHDUHUHGXFHGE\WKHVDPHDPRXQWWKDWWKH\IDLOHGWKHLU
:LOOVDYH7KLVQHJDWLYHDOVRJRHVWRLQWHOOLJHQFHVDYHVRUWRGHWHFWLRQVDYHV7KH\
DUHIRFXVHGRQNLOOLQJ
2QFHHDFKWXUQWKH\PXVWUROOWKHLU:LOOVWDWYV'WRFDOPGRZQ
(DFKSHUVRQWU\LQJWRWDONWKHPRXWRILWZLOOUROOYVWKHLUFKDULVPDG,IWKH\
VXFFHHGWKH\FDQDGGWKHDPRXQWRIVXFFHVVWRWKHSOD\HU V:LOOVWDWIRUWKHLUVDYH
WKDWWXUQ

,IWKHUHDUHQRPRUHHQHPLHVWRILJKWDQGWKHSOD\HULVEHUVHUNWKH\PXVWVDYHYV
,GRUDWWDFNIULHQGV,IWKHUHDUHQRIULHQGVVRPHVWUXFWXUHVZLOOGRQLFHO\

0XWH,KDYHRSHQHGWKLVZHDNQHVVXSWRDQ\DQGDOOVSHHFKSUREOHPVQRWMXVWPXWH
7KLQJVOLNHVWXWWHULQJ7RXUHWWH¶V6\QGURPHRUUHTXLULQJDVSHHFKER[DUHVRPHRIWKH
WKLQJV,KDYHWULHGLQWKHSDVW

'HSHQGDQW7KHSOD\HUKDVDQHOGHUO\UHODWLYHRUVLFNFKLOGRUVRPHWKLQJRIWKLVVRUW
WKDWKHQHHGVWRWDNHFDUHRI7KHREYLRXVFRPLFFKDUDFWHULV6SLGHU0DQZLWK$XQW
0D\

$UFK(QHP\)RUDNQRZQRUXQNQRZQUHDVRQVRPHRQHRUVRPHRQHVKDWHVDQG
ZDQWVWKLVFKDUDFWHUGHDGEHIRUH\RXUFKDUDFWHUHYHQJDLQVH[SHULHQFHSRLQW

6NHOHWRQ,QWKH&ORVHW7KHFKDUDFWHUKDVVRPHVHFUHWWKDWKHGRHVQ WZDQWDQ\RQH
WRNQRZ7KLVFRXOGEHDVHFUHWFULPHHPEDUUHVVLQJSKRWRRUZKDWKDYH\RX,IWKH
SOD\HUKDVWZRGRVHVRIWKLVSRZHUWKHQKHKDVWKLVZHDNHQVVEXWWKHSOD\HUGRHVQ W
NQRZMXVWZKDWKLVVNHOHWRQPD\EH

0\VWHULRXV3DVW7KLVLVOLNHWKH6NHOHWRQLQWKH&ORVHWEXWWKHSOD\HUKDVDSDVWWKDW
KHLVQRWDZDUHRI(LWKHUKLVIDPLO\VHFUHWO\UXQV+\GUDRU$LPRULVLQWKH0DILDRU
KHVXIIHUVIURPKRQHVWWRJRRGQHVVDPQHVLDDQGMXVWSODLQGRHVQ WNQRZPXFKDERXW
KLVIRUPHUOLIH
/RQHU7KLVFKDUDFWHUMXVWGRHVQ WOLNHRWKHUVEULQJLQJKLPGRZQ+HLVQRWDMRLQHU
+HZRUNVEHVWDORQH

1DLYH7KLVJX\LVMXVWWRRWUXVWLQJ+HEHOLHYHVWKHEHVWLQHYHU\RQHDQGMXVWNHHSV
IDOOLQJIRULW

'HDWKZLVK7KHJUHDWHUWKHRGGVWKHPRUHFKLSVVWDFNHGDJDLQVWKLPWKHEHWWHU+HLV
QRWDPDVRFKLVWEXWMXVWLVWKHILUVWRQHWRMXPSRIIWKHFOLII

&RVWXPHVDQG6HFUHW,GHQWLWLHV
,QWKHUXOHVLWVD\VWKDW\RXFDQLQVWDQWDQHRXVO\WUDQVIRUPLQWR\RXUFRVWXPHLI\RX
KDYHDJRRGH[SODQDWLRQ6RUU\EXWWKDWGRHVQ WZRUNIRUPH<RXPXVWKDYHD
SRZHUWKDWFDQZRUNLQWRLW$1'WKHQ\RXPXVWVXFFHVVIXOO\LQYHQWDFRVWXPH
6D\LI\RXKDYH'DUNQHVVFRQWURO\RXFDQLQYHQWDFRVWXPHZRYHQIURPWKH
GDUNQHVV\RXFDQFRQWURO,WZLOOZLWKVWDQGDOO\RXUSRZHUVDQGSRSRQSRSRIIDW
ZLOOIRUQRPRYHPHQWFRVW

([SHULHQFH/HYHO%RQXVHV

$ 7UDLQLQJ/RVLQJZHLJKW(DFKOHYHOVSHQWWUDLQLQJWKHFKDUDFWHUFDQUHGXFHG
WKHLUZHLJKWE\RQHWHQWK7RJDLQZHLJKWHDFKOHYHOWKH\FDQDGGRQHWHQWKRI
WKHLUFXUUHQWZHLJKWWRWKHLUVFRUH

&RPEDW
$([SHULHQFH0RGLILFDWLRQ(DFKFKDUDFWHUJHWVDPRGLILHUIRUFRPEDWEDVHGRQ
OHYHO
/HYHO%RQXV
 
 
 
 

7KLVERQXVLVDSSOLHGWRERWKWRKLWDQGDVDPLQXVWREHKLW

&RPEDW&KDUW
$]HURPHDQVWKDWWKHGHIHQGHULVLPPXQHWRWKDWSDUWLFXODUDWWDFN6RPHQRWHG
H[FHSWLRQVDUHZLOOSRZHUYV+7+*UDYLW\WR+7+2WKHUFKDQJHVDUHDVIROORZV
$VWUDO3URMHFWLRQJHWV]HURVWRFKHPLFDOSRZHUV)ODPH3RZHUV)RUFH)LHOG
/LJKW&RQWURO/LJKWHQLQJ&RQWURO0DJQHWLF3RZHUV3RZHU%ODVW6RQLF$ELOLWLHVDQG
9LEUDWRU\3RZHUV
6WUHWFKLQJ3RZHUVJHWVD]HURWR+7+

'(YDVLRQ
7KHVDPHDVWKHUXOHVEXWWKHHYDGLQJFKDUDFWHUPXVWVXEWUDFWWKHDPRXQWWKDWWKH\
FDQHYDGHIURPWKHLUPRYHPHQWSRLQWV,QRUGHUWRHYDGHRQHKDVWREHPRYLQJ

(&RPEDW(IIHFWV
:KHQSXOOLQJDSXQFKWKHSOD\HUFDQFDOOZKDWGLHWKH\ZDQWWRXVHIRUGDPDJH
8VHWKH+7+SURJUHVVLRQFKDUWIRUGLH)RUH[DPSOHDJX\WKDWGRHVGGDPDJHFDQ
SXOOKLVSXQFK7KH\FDQFKRRVHWRRQO\GRGGGRUDQ\WKLQJORZHUWKHQWKHLU
QRUPDOIXOOSRZHUHGSXQFK

,QRUGHUWRUROOZLWKDSXQFKDFKDUDFWHUPXVWKDYHWKHNQRZOHGJHDUHDRI7XPEOLQJ

:HDSRQU\
$XWRPDWLFJXQVGRQ¶WKDYHDPLQXVRQGDPDJH$QGWKHILUVWEXOOHWLVWKHRQO\RQH
WKDWJHWVDGDPDJHPRGLILHU$OVRQRQDXWRPDWLFJXQVKDYHDFXPXODWLYHWRKLWSHU
VKRWIURPWKHJXQ¶VUHFRLO$XWRPDWLFVDQGVHPLDXWRPDWLFVGRQ¶WVXIIHUIURPWKLV

6SHFLDO$WWDFNV
&DOOLQJWKHVKRW7KHFKDUDFWHUVXIIHUVDWRKLWEXWWKHVKRWKLWVWKHVSHFLILFSRLQW
FDOOHG&DOOLQJDOLPELVFDOOLQJDVSRWRQDOLPELV6RWRFDOOWKHVKRWWRWKH
KHDGLVEXWWRFDOOWKHVKRWWRWKHH\HLV

&DOOLQJWKHNQRFNEDFN7RPDNHWKHWDUJHWIO\LQWKHGLUHFWLRQ\RXZDQWPHDQVWKDW
\RXPXVWVXIIHUDWRKLW

$LPLQJ)RUHDFKSKDVH\RXVSHQGDLPLQJ\RXJHWDERQXVRIWRKLWXSWR
PD[LPXP<RXUDFWLRQLVGHOD\HGZKLOHDLPLQJ6RLI\RXZHUHVXSSRVHGWRJRRQ
SKDVHEXW\RXVSHQWSKDVHVDLPLQJ\RXNQRZJRRQSKDVH

%RG\6ODP$WWDFNDVQRUPDOEXW\RXKDYHWRPDNHDQ$JLOLW\VDYHDOVR7KLVLV
IRU\RXWRDFWXDOO\MXPSLQWR\RXUWDUJHW<RXJHW+7+\RXUERG\ZHLJKWIRUDGGHG
GDPDJH

5XQQLQJ1RUPDODWWDFNEXW\RXJHW\RXUYHORFLW\DGGHGWRGDPDJH5HVWULFWLRQV
GHSHQGRQWKHVLWXDWLRQ

7KURZLQJ7KLVLVXVXDOO\DPXOWLSOHDWWDFN)LUVWDWWDFNJUDEVIRUQRGDPDJHVHFRQG
DWWDFNWKURZVIRUGDPDJH7KHWDUJHWWDNHVYHORFLW\GDPDJHSOXVWKHLUERG\ZHLJKW
GDPDJH

%ORFNLQJ<RXFDQRQO\GRWKLVLQFHUWDLQFDVHE\FDVHVLWXDWLRQV<RXLQWHUUXSWWKH
LQFRPLQJDWWDFNDQGDFWLYHO\UHVLVWWKHDWWDFN<RXUHGXFHWKHLUGDPDJHE\\RXU+7+

3DUU\LQJ:KHQXVLQJDZHDSRQWKDWFDQSDUU\ *0DQG3OD\HUPXVWILJXUHLWRXW
RQDFDVHE\FDVHEDVLV DSOD\HUFDQSDUU\DQRSSRQHQW¶VZHDSRQ7RGRWKLVWKH\PXVW
KDYHDVDYHGDFWLRQ7KHQWKH\FDQFRQYHUWDOOWKHUHSOXVHVWRKLWWRPLQXVHVIRUWKHLU
RSSRQHQWWRKLW7KLVLVJRRGEHFDXVHDIWHUDVXFFHVVIXOSDUU\WKHLURSSRQHQWFDQ WXVH
WKHLUZHDSRQIRUSDUU\LQJRUIRULWVGHIHQVLYHERQXVWKDWSKDVH

8VLQJDVKLHOGWKHERQXVGHSHQGVRQWKHVL]HRIWKHVKLHOGEXWLWVXVXDOO\
+RZHYHULIWKHKLWLVZLWKLQWKDWWKDWWKHVKLHOGJLYHV\RX\RXUVKLHOGLVVWUXFNDQGPD\
WDNHGDPDJH

6ROLG+LWV,I\RXKLWZLWKDUROOWHQORZHUWKDQ\RXQHHGHGWRKLW\RXUKLWLVDVROLG
KLWDQGFDQQRWEHUROOHGZLWK

1DWXUDO,I\RXUKLWZDVDQDWXUDORQHWKDWLWVGRXEOHGDPDJH6RLV\RXU
RSSRQHQW¶VGDPDJHLIWKH\UROODQDWXUDO

1DWXUDO7KLVLVDOZD\VDPLVVDQGDERWFK7KH*0FDQFRPHXSZLWKVRPHRQH
EDGIRUWKHSRRUVOREZKRUROOHGWKLV

&DUULHU$WWDFNV2QO\RQHUROOLVQHHGHG,WVFRQVLGHUHGDPXOWLSOHDWWDFNIRUSXUSRVH
RISRZHUVSHQW7KHFDUULHUZRUNVLIDWOHDVWRQHSRLQWRIGDPDJHLVWDNHQRIIRIWKH
YLFWLP¶VKLWSRLQWV

0XOWLSOH$WWDFNV
7RPXOWLSOHDWWDFNWKHFKDUDFWHUVSHQGVH[WUDSRZHU,WZRUNVOLNHWKLV7KHILUVW
DWWDFNLVQRUPDO7KHVHFRQGDWWDFN\RXVSHQGSRZHU7KHWKLUGDWWDFN\RXVSHQG
SRZHU7KHIRUWK\RXVSHQGDQGVRRQ

+LW3RLQWVYV3RZHU3RLQWV
([KDXVWLRQLVOLNHIDWLJXHEXWLWRQO\KDSSHQVZKHQDFKDUDFWHUEHFRPHVIDWLJXHG
WRPDQ\WLPHVLQDGD\,IWKH\EHFRPHIDWLJXHGRQHPRUHWLPHWKHQWKH\KDYHHQGXUDQFH
SRLQWVWKH\EHFRPHH[KDXVWHGDQGFDQQRWKHDODQGWKH\RQO\JHWSRZHUEDFNRQFHSHU
KRXURIEHGUHVW


D&RPEDW0RGLILHUV

+HUHLVDSDUWLDOOLVWRIWKLQJVWKDWPRGLI\WKHFRPEDWUROO

)LUVWRII,ODEHOWKLQJVDVLPSRVVLEOHKDUGGLIILFXOWQRUPDOHDV\YHU\HDV\EURDGVLGH
RIDEDUQ

,PSRVVLEOH
+DUG
'LIILFXOW
1RUPDO
(DV\
9HU\(DV\
%URDG6LGHRID%DUQ

:KHQDWWDFNLQJRUPDNLQJDVDYH,WKLQNLIDQ\RIWKHVHDSSO\7KHQDPHVDQGSOXVHV
DUHEDVHGRQWKHDYHUDJH+XPDQ*LYLQJDQRUPDOKXPDQDRQKLVUROOLVSUHWW\PXFK
PDNLQJLWLPSRVVLEOHIRUWKHPWRGRLW:KLOHLWGRHVKDPSHUDPHWDKXPDQLWVKRXOGQ W
PDNHLWLPSRVVLEOHEXW,DPNHHSLQJWKHGHVLJQDWLRQ

6L]HRIWDUJHW,JLYHDWRKLWHTXDOWRWKH+)RIVL]HFKDQJHGFKDUDFWHUV,I\RXU+)
LV DERXWIHHWWDOO WKHQPRVWSHRSOHKDYHDWRKLW\RX6DPHZLWKPLQXVHVIRU
VPDOOHUWDUJHWV

3LWFK'DUNWRKLW

+DOI&RYHUHGWRKLW

7DUJHW V%DFNWRKLW

7DUJHW V)ODQNWRKLW

$OOKDQGKHOGPHOHHZHDSRQVJLYHDWRKLWDQGDWREHKLW7KHVHDUHWKHVDPHDV
JLYHQLQWKHUXOHV
$JX\ZLWKDVZRUGKDVDWRKLWDQGDWREHKLW7KHVZRUG VPDQNHHSVKLVWDUJHWDW
DGLVWDQFHDQGLVZDYLQJDVKDUSREMHFWDURXQGPDNLQJKLPPRUHGLIILFXOWWRDWWDFN7KLV
GHIHQVHERQXVLVORVWLIWKHDWWDFNHUVXFFHVVIXOO\JUDSSOHVRUGLVDUPVWKHGHIHQGHU

E&ULWLFDO+LWV
6RPHKLWVFDXVHGDPDJHVRVHYHUHWKDWWKHZRXQGFRQWLQXHVWREOHHG:KHQHYHUD
KLWSRLQWLVORVWE\DFKDUDFWHUWKHUHLVDFKDQFHWKDWWKHZRXQGFDQEHFULWLFDO&ULWLFDO
KLWVFDQQRWEHKHDOHGE\QRUPDOPHDQV&ULWLFDOKLWVPXVWEHWHQGHGWRE\DGRFWRU$
ZRXQGLVFULWLFDOLIWKHNQRFNRXWUROOLV$1'WKHUROOLVQRWRYHUWKHDPRXQWRI
GDPDJHWDNHQE\WKDWDWWDFNLQKLWV)RUH[DPSOH%REWDNHVSRLQWVRIGDPDJHIURP
KLVKLWV7KHNQRFNRXWUROOVLV:KLOHLWLVZLWKLQWKDWUDQJH%RERQO\WRRNGDPDJH
VRWKHZRXQGLVQRWFULWLFDO
2NQRZWKHVHWKLQJVPRGLI\WKHFULWLFDOKLWV

3XQFKHV1RUPDO
%OXQW:HDSRQV
6KDUS:HDSRQV
*XQV
([SORVLRQV
(QHUJ\

1RZWKHERG\SDUWDOVRPRGLILHVWKHFULWLFDOKLWV

%RG\6KRWQRUPDO
$UPOHJQRUPDO
+HDG+HDUW[
*URLQ[

6RLIDJXQLVXVHGDQDFDOOHGVKRWWRWKHKHDGLVPDGHWKHQWKHZRXQGLVFULWLFDOLIWKH
NQRFNRXWUROOVLVEHWZHHQ

7RKHDOIURPDFULWLFDOKLWVXUJHU\LVUHTXLUHG*HWWLQJVXUJHU\FDXVHVGGDPDJH
WRWKHSDWLHQWZKLFKWKH\RIFRXUVHFDQQRWUROOZLWK7KLVGDPDJHLVPRGLILHGE\WKH
VXUJHRQ VVNLOO<RXWDNHWKHGDPDJHPRGLILHURIWKHVXUJHRQDQGVXEWUDFWLWIURPWKH
GGDPDJHRIWKHSURFHGXUH

$OVRWKHVXUJHRQQHHGVWRUROO,G ,LVKLVLQWHOOLJHQFHVFRUH WRVHHLIKHLV


VXFFHVVIXO,WLVQRWVXFFHVVIXOWKHQWKHGDPDJHLVWDNHQEXWQRSRVLWLYHUHVXOWVDUH
JDLQHG,WQHHGVWREHGRQHDJDLQDQGZLWKPRUHULVNDVWKHSDWLHQWKDVOHVVKLWV

$IWHUHDFKVXUJHU\WKHSDWLHQWUROOV(G,IKHIDLOVWKHUROOKHSHUPDQHQWO\ORVHVDSRLQW
RI(QGXUDQFH7KLVVLPXODWHVZHDUDQGWHDU,WVEHVWWRDYRLGLQMXULHVDIWHUDOO

$QGWKHQGRQ WIRUJHWWRUROOWRVHHLIWKHGDPDJHWDNHQIURPWKHVXUJHU\LV
FULWLFDO,ILWLVWUHDWWKLVDVFRPSOLFDWLRQVIURPWKHVXUJHU\

5HDFWLRQV/R\DOW\DQG0RUDOH
,GLGDZD\ZLWKWKHROGUHDFWLRQFKDUW,QVWHDGWKHUROOLVPDGHZLWKD&KDULVPDGLH
 &G <RXWDNHWKHQXPEHUDQGFRPSDUHLWWR\RXUFKDULVPDVFRUH,IWKHGLHUROO
LVXQGHU\RXUFKDULVPDWKHQ\RXVXFFHHGHG,I\RXUROOHGRYHU\RXUFKDULVPD\RXIDLOHG
7KHORZHU\RXUROOHGXQGHU\RXUFKDULVPDWKHEHWWHU\RXVXFFHHGHGWKHKLJKHURYHUWKH
ZRUVH\RXIDLOHG
<RXORRNDWWKHQXPEHU\RXVXFFHHGHGE\RUIDLOHGE\DQGXVHWKHFKDUW

5ROO5HDFWLRQ
$UFK(QHP\
(QHP\
%HUVHUN
(QUDJHG
9LROHQWO\+RVWLOH
+RVWLOH
+RVWLOHEXWQRQYLROHQW
9HU\VXVSLFLRXV
6XVSLFLRXV
'LVWUXVWIXO
1RW$JUHHDEOH
1HXWUDO
$JUHHDEOH
9HU\$JUHHDEOH
,QWHUHVWHG
9HU\LQWHUHVWHG
(QWKXVLDVWLF
9HU\(QWKXVLDVWLF
)ULHQGO\
9HU\)ULHQGO\
*XVKLQJ
2EVHVVHG
:RUVKLSIXO

&RRO6WUDQJHWKLQJVFDQKDSSHQLQDQDGYHQWXUH$VWKH*0VHHVILWKHFDQFDOOIRUD
FRROUROO$FKDUDFWHUWKHQUROOV&KDULVPDSOXVOHYHOG,IKHIDLOVKHORRVHVKLVFRRO
7KLVXVXDOO\PHDQVWKH\JHWDRQDOOGLHUROOVSHUQXPEHUDERYHZKDWWKH\UROOHGRQ
WKHFRROUROO,ILW¶VWHQRUPRUHWKH\PLJKWSDQLF2WKHUVPD\FDOPKLPGRZQE\XVLQJ
WKHLUFKDULVPDWRWDONWRWKHPWRFDOPWKHPGRZQ

3V\FK2XW6RPHWLPHV\RXPD\QHHGWRVFDUH\RXURSSRQHQWVRUSV\FKWKHPRXW
7RGRWKLV\RXGRVRPHWKLQJDVQHHGHG HJ\HOOWKUHDWHQRUGHUFRROWDONVPDVK
VRPHWKLQJHWF 7KHSOD\HUUROOV&GVRGRHVWKHWDUJHW7KHRQHZLWKWKHEHWWHU
VXFFHVV ORZHUUROOXQGHUWKHLUFKDULVPD LVWKHZLQQHU1RZKRZKLJKWKHVXFFHVV
WHOOVKRZJRRGWKHSV\FKRXWZHQW([&DSWDLQ6FDU\WKUHDWHQVVRPHJRRQ+LV&LV
7KHJRRQ¶VLVWHQ6FDU\UROOVDVRKLVVXFFHVVLV 7KHJRRQWULHV
WRUHVLVW+HUROOVDQ+LVVXFFHVVLV &DSWDLQ6FDU\EHDWWKHJRRQE\
 7KHJRRQORRVHVWKHFRQWHVWE\7KLVPHDQVKHLVQHDUSDQLF DVSDQLFLV
ORRVLQJE\ DQGKDVDRQDOOGLHUROOVDJDLQVW6FDU\$VPDUWPDQPLJKWJLYHXS

:DNLQJ5HVWLQJDQG+HDOLQJ
5HJDLQLQJ/RVW3RZHU$FKDUDFWHUJDLQVWKWKHLUHQGXUDQFHEDFNWRWKHLU
SRZHUVFRUHSHUPLQXWHRIUHVW

,IDSOD\HULVVWXQQHG NQRFNHGRXWEXWWKH\VWLOOKDYHKLWSRLQWV WKH\FDQDGG


WKHLUZLOOWRWKHLUHQGXUDQFHWRZDNHXS

,QYHQWLRQV,QYHQWLQJ3RLQWVDQG*L]PRV
3RZHU6WXQWV:KLOH,DOORZSRZHUVVWXQWV,KDYHVRPHOLPLWDWLRQVRQWKHP<RX
FDQ WMXVWVSHQGDQLQYHQWLQJSRLQWDQGKDYHLWEHWKHJHWRXWRIMDLOIUHHFDUG7KH
SRZHUVWXQWKDVWRPDNHVRPHVRUWRIVHQVHZLWK\RXUSRZHUV6SLGHU0DQFDQ WEXUVWLQWR
QRYDIODPH
7KLQJV,KDYHDOORZHGLQWKHSDVWXVLQJK\SHUIOLJKWWRJHWKRPHZKLOHORVWLQVSDFH
SUHWW\PXFKDOXFN\JXHVV XVLQJZHDNQHVVGHWHFWLRQWRILJXUHRXWWKHZHDNVSRWLQD
URERWVRWKH\DOOWHDPHGXSDQGKLWLWWKHUH&RPHWRWKLQNRILWWKRVHDUHWKHRQO\WZR
SRZHUVWXQWV,FDQUHFDOO

7RGRDSRZHUVWXQW\RXSUHWW\PXFKKDYHWRH[SODLQH[DFWO\ZKDW\RXZDQWWRGRLI
LWGRHVQ WILWZLWKWKHIODYRURI\RXUFKDUDFWHU HL7KH+XONMXVWGRHVQ WJRQRQFRUSRUHDO
MXVWFDXVHKHVSHQWDQLQYHQWLQJSRLQW DQGEHZDUQHG,PD\RYHUUXOHLW7KHQ\RXVSHQG
WKHLQYHQWLQJSRLQWDQGUROO\RXULQYHQWLQJFKDQFH,I\RXPDNHWKHLQYHQWLQJFKDQFH
UROOLWZRUNHG,I\RXEOXQGHUHGLWUROOHGWKHQZDWFKRXW,I\RXUROOHG
\RXVXFFHHGHGVSHFWDFXODUO\
7RUHXVHDVWXQW\RXVWLOOVSHQGWKHLQYHQWLQJSRLQWEXW\RXGRQ¶WKDYHWRUROOWKH
LQYHQWLQJFKDQFH

%UDLQVWRUPLQJ7ZRRUPRUHFKDUDFWHUVFDQWHDPXSDQGSRROWKHLUWHQWKVRIDQ
LQYHQWLQJSRLQWWRJHWKHUWRPDNHDRQHVKRWLQYHQWLRQ8VHWKHEHWWHUFKDQFHZKHQ
UROOLQJ

*DLQLQJNQRZOHGJH$FKDUDFWHUFDQVSHQGDQLQYHQWLQJSRLQWDQGOHDUQDQHZ
NQRZOHGJHDUHDRUVNLOO7KLVLVGRQHZLWKRXWDGLHUROOLIWKHUHLVDWHDFKHURULW¶VD
IDLUO\FRPPRQVNLOO,IWKHFKDUDFWHUZDQWVWROHDUQVRPHWKLQJWKDWLVUDUHRULVDVRI\HW
XQNQRZQWKHQWKH\PXVWLQYHQWLW

$SSHQGLFHV

6WUXFWXUDO3RLQWV
7REUHDNDQLQDQLPDWHREMHFWRQHPXVWH[FHHGWKHVWUXFWXUDOUDWLQJWKDWSKDVH)RU
HDFKSRLQWRIGDPDJHGRQHWRWKDWREMHFW29(5WKHVWUXFWXUDOUDWLQJRQHIRRWRIPDWWHU
LVVPDVKHGDQGRUGLVSODFHG.HHSLQPLQGWKDWVRPHDWWDFNVGRVWUXFWXUDOGDPDJHOLNH
GLVLQWHJUDWLRQWUDQVPXWDWLRQDQGVRRQ

 1HZ5XOHV
2YHUH[HUWLRQ$Q\FKDUDFWHUFDQRYHUH[HUWWKHPVHOYHV7KLVPHDQVWKH\FDQ
OLIWPRUHRUIO\IDVWHURUWHOHSRUWIDUWKHUHWF7KH\GRWKLVE\VSHQGLQJH[WUDSRZHU
SRLQWSHUERRVWRIDGGHGWRZKDWHYHUWKH\DUHGRLQJ([0HWD0DQQHHGV
WROLIWWKHFDUWRVDYHDEDE\+HLVQRWVWURQJHQRXJKVRKHVSHQGVSRZHUDQG
RYHUH[HUWVKLPVHOI+LVQRUPDOFDUU\LQJFDSDFLW\LVOEVEXWULJKWQRZIRUWKLV
DFWLRQRQO\LWLVLQFUHDVHGE\+HOLIWVWKDWFDUDQGVDYHVWKHGD\+RZHYHU
DVKHFDQQRWXVXDOO\FDUU\WKLVPXFKKHVXIIHUVGDPDJH<RXWDNHWKHH[WUDZHLJKW
VXEWUDFWLWIURPWKHQRUPDOFDUU\LQJFDSDFLW\RIWKHFKDUDFWHUDQG\RXORRNXSWKH
GDPDJHKHWDNHVRQWKHEUDZOLQJZHDSRQVFKDUW,QP\H[DPSOHDERYH0HWD0DQ
OLIWHGOEVZKHQKHFRXOGRQO\QRUPDOO\OLIW6RKLVERG\VXIIHUVDVLIKH
ZDVKLWZLWKDEUDZOLQJZHDSRQRIOEV7KLVPHDQVKHWDNHVGGDPDJH%XW
KHLVDKHURDQGWKDWLVDVPDOOSULFHWRSD\IRUVDYLQJWKHEDE\

*DLQLQJ1HZ3RZHUV,QFRPLFV6XSHUKHURHVDOZD\VHQGXSZLWKPRUHSRZHUV
WKDQZKHQWKH\VWDUWHG$WILUVWWKH,QYLVLEOH:RPDQFRXOGRQO\WXUQLQYLVLEOH1H[W
WKLQJ\RXNQRZVKHFDQFUHDWHIRUFHILHOGV, YHPDGHXSDV\VWHPWKDWDOORZVKHURHV
WRSXUFKDVHQHZSRZHUV7KHUXOHLV\RXVSHQGH[SHULHQFHSRLQWVSHUQXPEHU
RISRZHUV\RXZLOOKDYH<RXDOVRKDYHWREHRIWKHVDPHOHYHORUKLJKHUWKDQWKH
QXPEHURIFXUUHQWSRZHUV\RXKDYH(DFK:HDNQHVV\RXSRVVHVVWDNHVRQHSRZHU
DZD\IRUSXUSRVHVRIWDOO\LQJWKHWRWDOSRZHUVWKHKHURSRVVHVVHV([6S\PDQ
ZDQWVWRIO\+HLVWKOHYHODQGKDVWKUHHSRZHUVDOUHDG\6LQFHWKLVZRXOGEHKLV
IRXUWKSRZHUDQGKHLVIRXUWKOHYHOKHVSHQGVWKHH[SHULHQFHDQGKHJDLQVWKH
SRZHURIIOLJKW2IFRXUVHWKLVPHDQVWKDWKHZLOOVWD\IRXUWKOHYHOIRUDORQJWLPH
EXWWKDWLVKLVFKRLFH

6NLOO5ROOV7KHILUVWWKLQJ\RXKDYHWRGRLVDVVLJQDQDWWULEXWHWRDVNLOO7KLV
LVQRWWRRKDUG6RPHWKLQJOLNH3LFN3RFNHWLV$JLOLW\EXWVRPHWKLQJOLNH3K\VLFV
ZRXOGEH,QWHOOLJHQFH$Q\ZD\XVHFRPPRQVHQVHDQGOHWWKH*0VHWWOHDUJXPHQWV
:KHQ\RXXVHDVNLOODVDYHRQGLHLVUROOHGLI\RXKDYHWKHVNLOODQGDGLI
\RXGRQRW,IWKHUROOLVORZHUWKDQWKHDWWULEXWH\RXVXFFHHG%XWKRZPXFK\RX
%($7\RXUDWWULEXWHWHOOV\RXKRZZHOO\RXVXFFHHGHG([+HUR0DQZDQWVWRXVH
KLVFKHPLFDOODEWRDQDO\]HDSRZGHU+HUROOVGEHFDXVHKHKDVWKH&KHPLVWU\
NQRZOHGJHDUHD+LV,QWHOOLJHQFHLV+HUROOVD+HGLGLW)XUWKHUPRUHKHEHDW
KLV,QWHOOLJHQFHE\+HOHDUQHGTXLWHDELWDERXWWKHSRZGHU

7KHGLIILFXOW\RIWKHWDVNLQTXHVWLRQPD\PRGLI\WKHVNLOOUHODWHGDWWULEXWH RQO\IRU
WKHSXUSRVHVRIVNLOOUROOV 

7$6. $775,%87(
',)),&8/7< 02'
'LIILFXOW 
+DUG 
,PSRVVLEOH 

([0V2FFXOWZDQWVWRILJXUHRXWDPDJLFVSHOOFDVWE\DQHQHP\6KH
KDVD0DJLFDO.QRZOHGJHVNLOODQGDQ,QWHOOLJHQFHRI7KH*0UXOHV
WKDWWKLVLVDGLIILFXOWWDVNDQGDVVXFKKHU,QWHOOLJHQFHLVORZHUHGE\
ILYHIRUWKHSXUSRVHRIWKHVNLOOUROO6KHUROOVDQ6KHGLGLW6KHEHDW
KHUVNLOOUROHE\VRVKHOHDUQVTXLWHDELWDERXWWKHVSHOO



.DUPD7KLVLVVRPHWKLQJ21/<SOD\HUFKDUDFWHUVFDQXVH)RUHYHU\
H[SHULHQFHSRLQWVDFKDUDFWHUVSHQGVWKH\FDQDIIHFWDSHUFHQWLOHGLHUROOE\DQG
QRUPDOUROHVE\GLHSRLQW7RXVHWKLVWKH\WHOOWKH*0WKHGHVLUHGUROODQGWKHQ
WKH\GHGXFWWKHH[SHULHQFHSRLQWVDQGWKHQUROOYV&KDULVPDWRVHHLILWZRUNHG,IWKH
GLVHTXDORUORZHUWKHQWKHSOD\HU¶VFKDULVPDWKHQWKHNDUPDLVVXFFHVVIXO,IWKH
UROOLVDERYHWKHSOD\HU¶VFKDULVPDWKH\ORVWWKHH[SHULHQFH,IWKHUROOLVWHQDERYHWKH
SOD\HU¶VFKDULVPDLWLVEDG.DUPDDQGWKHRSSRQHQWJHWVWKHERQXV,IDSOD\HUUROOVD
RQDNDUPDUROOWKHQWKH\ORRVHDFKDULVPDSRLQW.DUPDLVWKHRQO\GLHUROODSOD\HU
&$1127XVHNDUPDRQ([0HJD0DQQHHGVDWRKLWKHUROOVDVRKHVSHQGV
WKHNDUPDVXFFHVVIXOO\UROOVXQGHUKLV&KDULVPDDQGORZHUVWKDWGLHUROOWRD7KH
DOUHDG\GHGXFWHGH[SHULHQFHSRLQWVZHUHZRUWKLW2U0HJD0DQUHDOO\ZDQWVD
NQRFNRXWKHUROOVDRQDNQRFNRXWUROHEXWZDQWVWRORZHULWWRD+HQHHGVWKUHH
.DUPDSRLQWVWRORZHUWKHSHUFHQWDJHE\+HGHGXFWVWKHH[SHULHQFHUROOV
DJDLQVWKLV&KDULVPDSDVVHVWKDWUROHDQGKRSHVWKHLVDJRRGHQRXJKNQRFNRXWUROH

(QYLURQPHQWDO'DPDJH


6RPHWLPHVWKHHQYLURQPHQWLVQRWDIULHQGO\RQH$KHURFDQILQGWKHPVHOYHVLQ
WKHPRVWGDQJHURXVRISODFHVDWWLPHV,PDGHVRPHUXOHVWRKHOSRXWLIDSOD\HUHYHU
ILQGVWKHPVHOYHVLQWKLVXQIRUWXQDWHVLWXDWLRQ

6SDFH7KHSOD\HUWDNHVGDPDJHIURPWKHFROGDQGWKHYDFXXP6RPHDUHDVIURP
UDGLDWLRQDVZHOOV

9DFXXPGRHVGSHUWXUQ&ROGGRHVGSHUWXUQ


7KH2FHDQ8SWRIHHW\RXWDNHQRGDPDJH(DFK¶DIWHUWKDW\RXWDNHG
SHUWXUQ

$WPRVSKHULF3UHVVXUH$OOKXPDQVWKULYHLQ$ RQHDWPRVSKHUH 7KH\WDNHG
SHUWXUQSHUH[WUD$

2IFRXUVHOLIHVXSSRUWRUDGDSWDWLRQPD\FDQFHOWKHVHSHQDOWLHV

:HDOWK,GRQ¶WZDQWWREHFRPHDQDFFRXQWDQWVR,FDPHXSZLWKDUXOHIRUGHDOLQJ
ZLWKPRQH\$SOD\HUKDVDVWDWIRUZHDOWK(DFKSOD\HUVKDVDGHIDXOWZHDOWKRIDW
WKHEHJLQQLQJRISOD\:KHQWKH\QHHGWRSXUFKDVHVRPHWKLQJ DVVXPHWKH\KDYHWKH
PRQH\IRUDQLFHFUHDPFRQH VXEVWDQWLDOWKH\UROOYVWKHLUZHDOWK7KH*0FDQPRGLI\
LWEDVHGRQKRZUDUHH[SHQVLYHRUZKDWKDYH\RXLWLV,IWKH\UROOXQGHUWKHLUFXUUHQW
ZHDOWKWKHQWKH\FDQDIIRUGLW,IWKH\IDLOHGWKHQWRREDG7KH\FDQVWLOOEX\LWLIWKH\
IDLOHGWKHLUUROOE\UHGXFLQJWKHLUZHDOWKVWDWVFRUHE\WKHQXPEHUPLVVHG7KLVUHGXFWLRQ
LVSHUPDQHQWXQWLOWKH\HDUQPRUHPRQH\WREULQJWKHVFRUHXS
:KHQHYHUWKHZHDOWKVWDWLVUROOHGDQGDRQHLVWKHUHVXOWWKHLUZHDOWKJRHVXSE\
RQH,IWKH\UROOHGDWZHQW\WKHLUZHDOWKJRHVGRZQE\RQH:HDOWKFDQLQFUHDVHE\
WUDLQLQJLQYHQWLQJSRLQWVRUNQRZOHGJHDUHDVRUE\VRPHFUHDWLYHUROHSOD\

$UHDRI(IIHFW6RPHWLPHVWKHSLQSRLQWDFFXUDF\RIWKHSRZHUEODVWMXVWZRQ WGRLW
6RPHWLPHV\RXQHHGWRKLWHYHU\PRWKHUORYHULQWKHURRP+HUHLVDKRXVHUXOHWKDWKDV
EHHQUROOLQJDURXQGP\KHDGIRUDZKLOH

7XUQWKHUD\LQWRDUDGLXV:KHQ\RXDWWDFN\RXGHFODUH\RXDUHJRLQJIRUDQDUHDRI
HIIHFWDWWDFNDQG\RXUSRZHUFRVWLV&8%('DQGHYHU\WKLQJLVDWWDFNHG<RXWDNHWKH
UDQJHRIWKHDWWDFNDQGTXDUWHULWDQG(9(5<7+,1*LQWKDWUDGLXVLVDWWDFNHG

RN1RYD%R\LVVKRRWLQJDW0U%DG0U%DGIO\VDZD\DQGWKH%DGER\VKLVKHQFKPHQ
VZDUP1RYD%R\+HNQRZVKHFDQ WSLFNWKHPRIIRQHE\RQHDV0U%DGZLOOJHWDZD\
+HGHFODUHVKHLVJRLQJIRUDQ$2(DWWDFNDQGLQVWHDGRIVSHQGLQJSRZHUKHVSHQGV
DQGHYHU\WKLQJLQDIRRWUDGLXVLVVXEMHFWWRDIODPHEODVW+LVQRUPDOUDQJHZRXOG
KDYHEHHQDVWUHDPRIIHHWEXWKLV$2(DWWDFNLVGLYLGHGE\IRXUIRUUDQJH

7KH*0GHFLGHVKRZPDQ\FDQEHKLWDQGUROOVIRUHDFKWDUJHW,ZRXOGDVVJLQRQH
UROOIRUSXUSRVHVRIVHHLQJKRZPXFKGDPDJHWKHURRPJURXQGRUWKHDUHDZLWKLQWKH
$2(UDQJHWDNHVUDWKHUWKDQUROOIRUHDFKFKDLUZDOOIORRUHWF7KLVLVLPSRUWDQWWR
UHPHPEHUDVWKHHQYLRUQPHQWZLOODOVRWDNHGDPDJHDVLWVQHDUO\LPSRVVLEOH XQOHVV\RX
DUHLQWKHVN\ WRQRWKLWWKHIORRUDQGVXFK6REHYHU\FDUHIXOZKHQH[SORGLQ 

,WKLQNWKLVZRXOGFRYHUWKH7RUFK VQRYDEODVWSUHWW\ZHOO,WKLQNKHZRXOGPXOLSOH
DWWDFNDQGWKHQJR$2(

6HFXULW\&OHDUHQFH<RXVWDUWZLWKDDQG\RXDGG,QWHOOHJHQFHDQG&KDULVPD
DQGOHYHOWRJHW\RXUVFRUH1RZZKHQFOHDUHQFHFRPHVLQWRSOD\\RXZDQWWRUROODJDLQVW
\RXUFOHDUHQFHRQDG7KHORZHU\RXUROOWKHEHWWHU6RMXVWOLNHWKHPDLQDWWULEXWHVWKH
KLJKHU\RXUFOHDUHQFHVFRUHWKHEHWWHU

0DJLF
0DJLFLVWKHDELOLW\WRWDSLQWRWKHYDULRXVIRUFHVDQGPDQLSXODWHWKHPWR\RXUZLOO
7KLVLVDJUHDWSRZHUEXWLWWDNHVDORWRILQWHOOLJHQFHDQGNQRZOHGJHWRXWLOL]HLW
HIIHFWLYHO\1RPDJLFLDQZDVFUHDWHGRYHUQLJKW,WWDNHVDORQJWLPHDQGDORWRI
SDWLHQFHWREHFRPHDPDJH0DJLFLVWUHDWHGDVDVHFUHWDQGLVJXDUGHGE\SRZHUIXO
RUGHUV7KHUHDUHDIHZ2UGHUVLQP\JDPH7KH&RYHQ3HQWDFULPHWKH(VRWHULF2UGHU
RIWKH'UDJRQDQGWKH)UHHPDVRQV(DFKKDVLWVRZQDJHQGD7KH\GRQ¶WWDNHNLQGO\WR
URJXHSUDFWLWLRQHUV(DFKOHDGHURIDQRUGHULVFDOOHGD0DJXVDQGWKHEHVWPDJXVRQ
HDUWKLVFDOOHGWKH$UFKPDJXV7KHUHLVRQO\RQH$UFKPDJXVDWDWLPH
0DJLFLVPDQLSXODWLQJWKHQDWXUDOIRUFHV$PDJLFLDQVWXGLHVWKH/DQJXDJHRI&UHDWLRQ
DQGXVHVWKHODQJXDJHRIWKHFUHDWRUWRDOWHUUHDOLW\DVWKH\VHHILW7KHEHWWHURQH
XQGHUVWDQGVWKLV/DQJXDJHWKHEHWWHUWKH\DUHDWZLHOGLQJPDJLF/RRNDWPDJLFOLNH
WKLV*RGFUHDWHGWKH&RGHDQGWKH&RGHJRYHUQVKRZWKHXQLYHUVHZRUNV:KHQ\RX
OHDUQ*RG VFRGH\RXFDQDOWHUWKHFRGHWRVXLWH\RXUZKLP0DJLFLVLQDQXWVKHOOWKH
FKHDWFRGHWRWKH&RVPRV
1RRQHNQRZVDOOFKDUDFWHUVLQ*RG V$OSKDEHW'XHWRWKLVQRPDJLFLDQLVDEOHWR
SHUIHFWO\ZLHOGPDJLF2QHPXVWVXEVWLWXWHIRUWKHPLVVLQJOHWWHUV7KLVLVZK\PDWHULDO
FRPSRQHQWVRUPRUHFRPPRQO\FDOOHGUHDJHQWVDUHQHHGHG5HDJHQWVDUHV\PEROVRU
UHSUHVHQWDWLRQVRIWKHDIIHFWZHZLVKWRFUHDWH,IZHNQHZDOOOHWWHUVWKHQUHDJHQWV
ZRXOGQRWEHQHHGHG:L]DUGVDUHFRQVWDQWO\ORRNLQJIRUEHWWHUUHDJHQWVRUEHWWHU\HW
XQGLVFRYHUHGOHWWHUV
0DQ\UHOLJLRQVKDYHUHJDUGHG0DJLZLWKDWEHVWVXVSLFLRQRUDWZRUVH
SHUVHFXWLRQ7KHZL]DUGVHWVKLPVHOIXSDVDVXEVWLWXWHIRUJRGDQGWKLVLVRIIHQVLYHWR
PRVWUHOLJLRXVSHRSOH7KHZRUG:DUORFNLVDQH[DPSOHRIWKLV7KHZRUOGOLWHUDOO\
PHDQVZRUGEUHDNHU7KH:DUORFNOLWHUDOO\EUHDNVWKHZRUGRIJRGDQGUHSODFHVLW
ZLWKKLVRZQ7KLVLVZK\:DUORFNVDUHFRQVLGHUHGHYLOLQWKHPRGHUQZRUOG
%ODVSKHP\RUVSHDNLQJRXWDJDLQVWWKHZRUGRIJRGXVHGWREHDZRUGIRUFRQGHPQLQJ
PDJLFRUZLWFKFUDIW,WVPHDQLQJKDVFKDQJHGLQWKHPRGHUQZRUOG
$WUXH0DJLFLDQPXVWVWXG\FRQVWDQWO\WRKRQHWKHLUFUDIW/HDUQLQJWKHFRUUHFW
SXQFWXDWLRQDQGJUDPPDULVDYHU\GLIILFXOWWDVNZKHQRQHGRHVQ WHYHQKDYHDOOWKH
OHWWHUVWRZRUNZLWK7KLVLVZK\PDJLFLVPRUHDQDUWWKHQDVFLHQFHDQGWZR
PDJLFLDQVP\KDYHWZRGLIIHUHQWVSHOOVIRUWKHVDPHDIIHFW
2QHPXVWOHDUQP\VWLFLVPWROHDUQWRWKLQNWKHFRUUHFWV\PEROVDQGSURSHU
SHUVSHFWLYHV2FFXOWLVPPXVWDOVREHOHDUQHGWRUHYHDOWKLQJVWKDWDUHKLGGHQWRPRVW
H\HV3UHVGLJLWDWLRQLVDOVRQHHGHGWRPDNHWKHKDQGVIOH[LEOHHQRXJKWRRXWOLQHWKH
GLIILFXOWZRUGVIRUPHGE\WKH%\]DQWLQHV\PEROVRIWKH3ULPRUGLDO/DQJXDJH7KHQDOO
WKLVLVV\QHUJL]HGE\DQXQGHUVWDQGLQJRI6SHOO&UDIW7KHODVWNQRZOHGJHLVDKHDYLO\
JXDUGHGVHFUHW2UGHUVDQG6FKRROVDUHIRUPHGWRNHHSWKDWNQRZOHGJHIURPWKHKDQGV
RIDPDWHXUVDQGXQZRUWKLHV7KLVNQRZOHGJHPXVWEHWDXJKW,WLVVDLGWKDW$QJHOV
WDXJKWWKLVVNLOOWRWKHILUVWKXPDQPDJLFLDQV,WLVFRXQWHULQWXLWLYHDQGQRKXPDQKDV
HYHUVWXPEOHGXSRQLWE\DFFLGHQW

&RPSRQHQWVRI6SHOO&DVWLQJ

7R FDVW D VSHOO WKH PDJLFLDQ PXVW JDWKHU DOO WKH QHHGHG NQRZOHGJH DOO WKH QHHGHG
UHDJHQWV DQG WKHQ IRUP WKH QHHGHG WKRXJKWV +H WKHQ ZLWK KLV KDQGV WUDFHV WKH
V\PEROV RI WKH /DQJXDJH RI &UHDWLRQ LQ WKH DLU 7KH PDJLFLDQ LV OLWHUDOO\ UHZULWLQJ
UHDOLW\ZLWKDZDYHRIKLVKDQG7KLVWDNHVLQWHOOLJHQFHDJLOLW\DQGZLOO

0DWHULDO&RPSRQHQWV2UDVWKH\DUHPRUHFRPPRQO\UHIHUUHGWRUHDJHQWVDUHUHTXLUHG
E\PRVWVSHOOV7KHFRPSRQHQWFDQEHRQWKHSHUVRQRIWKH0DJHQRWLQWKHKDQGXQOHVV
WKH VSHOO VD\V VR VSHFLILFDOO\ 6R D  0DJH ZLOO W\SLFDOO\ FDUU\ D EDJ RI FRPSRQHQWV RQ
WKHLUSHUVRQ$0DWHULDOFRPSRQHQWLVVRPHWKLQJPDGHRIPDWWHUWKDWIDFLOLWDWHVWKHVSHOO
FDVWLQJSURFHVV7KHPDWHULDOLVXVXDOO\VRPHWKLQJV\PEROLFWRWKHHIIHFWRIWKHVSHOO
$GURSRIZDWHUPD\EHXVHGLQDUDLQPDNLQJVSHOORUDSHQQ\IRUDWHOHSDWK\VSHOO$
VSHOOFDQEHXVHGZLWKRXWDPDWHULDOFRPSRQHQWIRUWLPHVWKHQRUPDOVSHOOFRVWDQGWHQ
WLPHVWKHWLPHQHHGHG,IPDQQDLVXVHGLWLVLQVWDQWDQHRXV

9HUEDO&RPSRQHQW7KLVLVWKHZRUGVDQGFKDQWVWKDWWKHZL]DUGQHHGVWRVD\WRPDNH
WKHPDJLFZRUN0RVWVSHOOVQHHGWKLVFRPSRQHQW

6RPDWLF FRPSRQHQW  7KLV FRPSRQHQW LV WKH JHVWXUHV WKDW WKH ZL]DUG QHHGV WR GXH WR
PDNHWKHPDJLFZRUN

0HQWDOFRPSRQHQW7KLVLVWKHPHQWDOLPDJHWKDWWKHPDJLFLDQPXVWIRUPLQKLVPLQGWR
PDNHWKHPDJLFZRUN

$OOIRXUFRPSRQHQWVPXVWEHLQSHUIHFWV\QFK7KLVWDNHVDORQJWLPHIXOORIKDUGVWXG\
DQGSUDFWLFHWRPDNHLWZRUN
7\SHVRI0DJLF

6RORPRQRUJDQL]HGPDJLFLQWRVHYHQGLIIHUHQWW\SHV7KHVHDUHH[SODLQHGLQKLVVHPLQDO
ERRNRIPDJLFFDOOHG7KH6HYHQ.H\V

$EMXUDWLRQ7KH$EMXUDWLRQVFKRRORIPDJLFHQFRPSDVVHVSURWHFWLYHVSHOOV7KH\FUHDWH
SK\VLFDORUPDJLFDOEDUULHUVQHJDWHPDJLFDORUSK\VLFDODELOLWLHVKDUPWUHVSDVVHUV
RUHYHQEDQLVKWKHVXEMHFWRIWKHVSHOOWRDQRWKHUSODQHRIH[LVWHQFH$ZL]DUGZKR
VSHFLDOL]HVLQDEMXUDWLRQLVNQRZQDVDQDEMXUHU

$OWHUDWLRQ
$OWHUDWLRQLVWKHPDJLFRIFKDQJLQJWKHWUDLWVRIDQREMHFWEHLQJFUHDWXUHRUWKHSK\VLFDO
ZRUOG6SHFLDOLVWVLQDOWHUDWLRQDUHFDOOHG7UDQVPXWHUV

&RQMXUDWLRQ
&RQMXUDWLRQLVDPDJLFDUWVVNLOOWKDWDOORZVDSOD\HUWRVXPPRQDQGFRPPDQGFUHDWXUHV
EHLQJVDQGREMHFWV$VSHFLDOLVWLQFRQMXUDWLRQVLVFDOOHGDFRQMXUHU

'LYLQDWLRQ
7KHDUWRUDFWRIIRUHWHOOLQJIXWXUHSDVWRUXQNQRZQSUHVHQWHYHQWVRUUHYHDOLQJRFFXOW
NQRZOHGJHE\PHDQVRIDXJXU\RUDVXSHUQDWXUDODJHQF\6SHFLDOLVWVLQGLYLQDWLRQDUH
FDOOHG'LYLQHUVRU$XJXUV

(QFKDQWPHQW
(QFKDQWPHQWVDUHVSHOOVWKDWDIIHFWWKHSHUFHSWLRQVDQGRUPLQGRIDWDUJHW7KH\DOVR
FDQHPSRZHUPDJLFLQEHLQJVREMHFWVRUFUHDWXUHV7KLVLVWKHEURDGHVWVFKRRORIPDJLF
DQGWKHPRVWFRPPRQ6SHFLDOLVWVLQWKLVVFKRRODUHFDOOHGHQFKDQWHUV

(YRFDWLRQ
(YRFDWLRQPDJLFLVXWLOL]LQJQDWXUDOIRUFHV(YRFDWLRQVFDQFUHDWHVWURNHVRIOLJKWLQJ
H[SORVLYHEXUVWVRUZDOOVRIILUH7KLVLVDYHU\GDQJHURXVDQGIODPER\DQWVFKRRORI
PDJLF(YRNHUVDVWKHVHVSHFLDOLVWVDUHFDOOHGDUHYHU\EROGDQGDUURJDQW
1HFURPDQF\
1HFURPDQF\LVWKHDUWRIGHDWK7KLVVFKRROLVFRQFHUQHGZLWKKHDOLQJGHDGWLVVXH
UHJHQHUDWLRQORVWOLPEVFDXVLQJOLYLQJWLVVXHWRGLHPDQLSXODWLQJVRXOVDQGRIFRXUVH
DQLPDWLRQRIFRUSVHV6SHFLDOLVWVDUHFDOOHG1HFURPDQFHUV7KHJRRGQHFURPDQFHUVDUH
KHDOHUVWKHHYLODUHGHDWKREVHVVHG'DUN:L]DUGV

&DVWLQJ0DJLF

7RXVHPDJLFRQHPXVWKDYHWKHNQRZOHGJHDUHDVRI2FFXOW0\VWLFLVP3UHVGLJLWDWLRQ
DQGVSHOOFUDIW(DFKVFKRRORIPDJLFLVDOVRLWVRZQNQRZOHGJHDUHD7KHQDZL]DUGFDQ
OHDUQDVPDQ\VSHOOVDVWKH\KDYHLQWHOOLJHQFHSRLQWV,IDOOWKLVLVPHWDQGWKH\KDYHWKH
QHHGHGUHDJHQWVWKH\FDQWKHQFDVWWKHVSHOO
7RFDVWDVSHOORQHPXVWFRQFHQWUDWHDQGPRYH7KLVWDNHVWLPH)RUH[DPSOHWKH
VSHOO³)XOPLQDWLRQ´ HYRFDWLRQPDJLF FRVWSRZHUDQGLWFDVWVDOLJKWLQJEROW7KH
FDVWHUVSHQGVSRZHUDQGPRYHPHQWSRLQWV)RUWKHQH[WIRXUSKDVHVKHLVFDVWLQJWKLV
VSHOO,IWKHPDJH¶VDFWLRQZDVRQSKDVHWKHQWKHVSHOOZLOOILUHRIIRQSKDVH,IKH
LVKLWDQGWDNHVGDPDJHRUKLQGHUHGGXULQJWKHFDVWLQJWLPHWKHVSHOOLVORVWWKHSRZHU
DQGPRYHPHQWVSHQW7KLVLVZK\PRVWPDJHVZLOOKDYHJRRQVWRSURWHFWWKHP2UFDUU\
DPXOHWVWKDWLQVWDQWO\ILUHRIISUHSDUHGVSHOOV0DJLFFDQEHYHU\GHDGO\EXWLWFDQDOVREH
KDUGWRGR

1HZ6SHOOV

,IDSOD\HUZDQWVWRFUHDWHDQHZVSHOOWKH\PXVWILUVWOHDUQWKHNQRZOHGJHDUHDRI
6SHOO7KHRU\7KLVLVDQHYHQKDUGHUVHFUHWWROHDUQWKDQVSHOOFUDIW7KHUHDUHRQO\
KDQGIXORIPDJHVRQ(DUWKZLWKWKLVNQRZOHGJH

You might also like