$63(&,),&$//<6(/(&7('&$5'9$1,6+(6)520 $6($/(''(&.<28·9(1(9(5728&+(' DQGWKHQ 5($33($56:+(5(9(5<28:$17$//:,7+287$6,1*/(029(
%218667811(5
&5$&$$1 ´&526652$'6 $Q\&DUG$W$Q\1XPEHUµ
%\6WHYH6KXIWRQ %HQ+DUULV 7KLVLVWKH 3(5)(&79(56,21 RIWKH´$Q\&DUG$W$Q\1XPEHUµ3ORW 'HFNLQWURGXFHGEHIRUH\RXVWDUW VXFFHVVUDWH 3HUIRUPHU'2(6127WRXFK WKHFDUGV(9(5
WKH
&526652$'6 '(&.
EHQKDUULV )RUHZRUGE\3HWHU'XIILH
WKH
&526652$'6 '(&. $63(&,),&$//<6(/(&7('&$5'9$1,6+(6)520 $6($/(''(&.<28·9(1(9(5728&+(' DQGWKHQ 5($33($56:+(5(9(5 <28:$17 $//:,7+287$6,1*/(029(
EHQKDUULV 63(&7$725+2/'6'(&.%()25(&$5',61$0(' 21/<21('(&.86(' 352'8&(7+(6(/(&7('&$5')520$1<:+(5( 6(/):25.,1* 126.,//5(48,5(' ,167$17/<5(3($7$%/(
$)5((/<&+26(1&$5'9$1,6+(6)520 $6($/(''(&.<281(9(5728&+ &526652$'6 %\%HQ+DUULV
DQGWKHQ
IRUHZRUGE\3HWHU'XIILH
SDJH
ZKDWWKHHIIHFWORRNVOLNH EULHIKLVWRU\ PDNLQJWKH&526652$'6'(&. VHWWLQJXS\RXULQWHQGHGWDUJHWV WDUJHWLOOXVWUDWLRQ ZULWLQJDQLQWURGXFWRU\VFULSW SUHVHQWLQJ&526652$'6 UHYHDOLQJWKHVHOHFWHGFDUGDWWKHILQDOGHVWLQDWLRQ
SDJH SDJH SDJH SDJH SDJH SDJH SDJH SDJH
5($33($56:+(5(9(5 <28:$17 $//:,7+287$6,1*/(029( DSSHQGL[
FRLQWRVV%OXII DOWHUQDWHIRUFH RWKHUGHVWLQDWLRQSRLQWV RXWLQWKHRSHQWDUJHWVHW VRPHFXULRXVWKLQJVDERXWWKH&526652$'6VHTXHQFH FRROGRGJHZKHQZLWKIULHQGV LQVWDQWUHSHDWEOXII .URVVURDGV WKHGHYLO·VSHHN WKH*ROGHQ0RPHQW
SDJH SDJH SDJH SDJH SDJH SDJH SDJH SDJH SDJH
63(&7$725+2/'6'(&.%()25(&$5',61$0(' 21/<21('(&.86(' 352'8&(7+()5((/<1$0('&$5')520$1<:+(5( 6(/):25.,1* 126.,//5(48,5(' ,167$17/<5(3($7$%/( ERQXVHIIHFW
&5$&$$1E\6WHYH6KXIWRQ %HQ+DUULV &URVVURDGVPHHWV$&$$1
SDJH
&526652$'6 %\%HQ+DUULV
)RUHZRUGE\3HWHU'XIILH
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·VPRUH WKHZKROHWKLQJLVWHFKQLFDOO\VHOIZRUNLQJ ,QWKHSDJHVWKDWIROORZ\RXZLOOQRWRQO\OHDUQWKHFOHYHUGHWDLOVRIWKLVHIIHFWEXW%HQKDV SURYLGHGPDQ\DGGLWLRQDOQXDQFHVDQGVXJJHVWLRQVIRU\RXWRFRQVLGHUWKDWFRXOGOHDG\RXDORQJ GLIIHUHQWSDWKV)RUH[DPSOH LQVWHDGRIVLPSO\SODFLQJDGHFNRQWKHWDEOHKRZDERXWLI\RXPDLOD VHDOHGGHFNWRVRPHRQHEHIRUH\RXUVKRZ"$QG\RXQHYHUWRXFKWKDWGHFNDJDLQRQFHLWGURSVLQWRWKH PDLOER[ ,I \RX·UH ORRNLQJ IRU D GLUHFW DQG SRZHUIXO FDUG HIIHFW \RX·OO ORYH WKLV $QG LI \RX HQMR\ H[SHULPHQWLQJ DQG H[SORULQJ WKH LQV DQG RXWV RI D WULFN \RX·OO ORYH WKLV HYHQ PRUH EHFDXVH WKH SRVVLELOLWLHVVHHPHQGOHVV 1RZWKDW,KDYHILQLVKHGZULWLQJWKLVIRUHZRUG,ZLOOEHFRQWDFWLQJ%HQWRILQGRXWKRZ,FDQ JHWDKROHLQP\KHDG,WZLOOEHZHOOZRUWKKDYLQJWKHVXUJHU\GRQHLILWPHDQVWKDW,ZLOOEHDEOHWR FRPHXSZLWKVRPHWKLQJDVJRRGDV7KH&URVVURDGV'HFN
3HWHU'XIILH 6FRWODQG
DVHOIZRUNLQJNLOOHU
&526652$'6 %\%HQ+DUULV
:KDWWKHHIIHFWORRNVOLNH $ VSHFWDWRU LV KDQGHG D FDVHG GHFN ZLWK WKH SURPLVH WKDW WKH SHUIRUPHU ZLOO QRW WRXFK LW 7KH SHUIRUPHUDOVRSODFHVKLVZDOOHWRQWKHWDEOH´7KLVLVP\PRQH\WULFNµKHH[SODLQV 7ZRVSHFWDWRUVDUHDVNHGWRDVVLVW7KHILUVWLVDVNHGWRVHOHFWDQXPEHUIURP/HW·VVD\VKHVD\V ´6HYHQµ6KHLVRIIHUHGWKHFKDQFHWRFKDQJHKHUPLQG2QFHVKH·VPDGHKHUHQWLUHO\)5((&+2,&( WKHVHFRQGVSHFWDWRULVDVNHGWRGHFLGHXSRQDVXLW:H·OODVVXPHVKHGHFLGHV´+HDUWVµ 7KH WZR FKRLFHV DUH FRPELQHG WR DUULYH DW LQ WKLV LQVWDQFH WKH ´6HYHQ RI +HDUWVµ³WKH SURFHVV KDYLQJDSSHDUHGIUHHIDLUDQGDWWKHZKLPRIWKHVSHFWDWRUV 7KHSHUIRUPHUQRZLQYRNHVKLVPDJLFDQGWKHIUHHO\VHOHFWHGFDUGLVEURXJKWXQGHUKLVVSHOOIURPD GLVWDQFHE\WKHVHPDJLFDOSDVVHVDQGLQFDQWDWLRQV5HPLQGLQJWKHDXGLHQFHWKDWKHKDVQRWRQFH WRXFKHGWKHFDUGVWKHVSHFWDWRUKROGLQJWKHFDVHGGHFNLVLQVWUXFWHGWRUHPRYHWKHFDUGVIURPWKH FDVHDQGWRFRXQWWKHP´287/28'RQHDWDWLPH)$&('2:1µ+HGRHVVRDQGFRXQWVRQO\FDUGV WRWKHWDEOH,QRWKHUZRUGVRQHFDUGLVPLVVLQJ
&526652$'6 %5,()+,6725<
7
KLVVWDUWHGRXWDVDYHUVLRQRI´$Q\1DPHG&DUG,Q:DOOHWµ6RPHWKLQJ,·YHEHHQGRLQJIRU GHFDGHVVLPSO\E\FDUU\LQJD-DFNRI6SDGHVLQP\ZDOOHWDWDOOWLPHV,ZRXOGWDEOHWKHZDOOHWDV ,UHPRYHDGHFNIURPP\SRFNHW,)7+(-$&.2)63$'(6MXVWKDSSHQHGWREHPHQWLRQHG VHOHFWHG RU ZKDWHYHU , KDYH D NLOOHU HIIHFW 2EYLRXVO\ LW·V EHHQ D UDUH HIIHFW RI RSSRUWXQLW\ ,·G RFFDVLRQDOO\SXVKRUSXOOLWLQGLIIHUHQWGLUHFWLRQVDWRQHWLPHDOVROHDYLQJD4XHHQRI+HDUWVLQP\ SRFNHWWKXVJLYLQJWZR´RXWVµ,W·VDOZD\VHDV\WRJUDED´4XHHQRI+HDUWVµIURPDQHQWKXVLDVWLF DXGLHQFH$QG,·YHDOZD\VKDGDORWRIOXFNZLWKWKH-DFNRI6SDGHV ,DSSUHFLDWHWKHULFKWDSHVWU\RILGHDVDQGLQQRYDWLRQIRUPLQJWKHEDFNVWRU\IRUWKLVHIIHFW´$Q\ 1DPHG&DUG,Q:DOOHWµLVZLWKRXWGRXEWDFODVVLF0HWKRGVKDYHYDULHGZLGHO\VRPHKDYHUHTXLUHG WKHXVHRIDGR]HQRUPRUH´RXWµFDUGVRUVHYHUDOZDOOHWVDQGGHYLFHV.HQWRQ.QHSSHU·V.RORVVDO .LOOHULVWKHPRVWSRSXODUDQGRIWHQUHIHUHQFHGYHUVLRQRIWKHJHQUH +RZHYHULW³DQGDOPRVWDOOWKHHIIHFWVYDULDWLRQVLQWKHVDPHIDPLO\³IDLOWRDOORZDVSHFWDWRUWR UXPPDJHWKURXJKWKHZDOOHW RUZKDWHYHUWKHILQDOGHVWLQDWLRQPD\EH ³GLVFRYHULQJWKHVLQJOHFDUG IRUKHUVHOI7RPHWKDW·VRQHRIWKHPRVWLPSRUWDQW´GHWDLOVµLQVXFKDQHIIHFW,W·VWKDWUHDOL]DWLRQRI ´LVRODWHGVLQJXODULW\µWKDWLVWKHILQDOVHOO7KHORRNRQWKHVSHFWDWRU·VIDFHZKHQ7+(<´KLWµWKH 6,1*/(FDUGLQWKHZDOOHWLVSULFHOHVV7KHDXGLHQFHHPSDWKL]HVEHOLHYHPH ,WKRXJKWLWZRXOGEHQLFHWRDGGDYDQLVKSKDVH,QRWKHUZRUGVDQDPHGFDUGLVQRWVLPSO\SURGXFHG IURP\RXUZDOOHWRUSRFNHW5DWKHULWDSSHDUVWKHUH7KLVPHDQVLW0867KDYHLQLWLDOO\YDQLVKHG IURP620(:+(5(2IFRXUVH³WKHGHFN³WKDW·VWKHSHUIHFWVWDUWSRLQWIRUWKHYDQLVK 7KH KHDUW RI WKH &URVVURDGV PDFKLQH LV D VSHFLDOO\ DUUDQJHG GHFN 7KLV GHFN ZKHQ XVHG ZLWK D FXQQLQJ´KDOIIUHHKDOIIRUFHGVHOHFWLRQµDOORZV\RXWRFUHDWHWKHLPSUHVVLRQ\RXFDQPDNH´$1< 1$0('&$5'9$1,6+µ7KHSURRILVLQWKHSXGGLQJDQGZKHQWKHVSHFWDWRUFKHFNVWKHFDUGVIRU KHUVHOI \RXKDYHQRWWRXFKHGWKHFDVHGGHFN VKHILQGV21/<&$5'6DQGWKH&+26(1&$5',6 0,66,1*7KHSURFHGXUHZRUNVH[DFWO\WKHVDPHZLWKDQ\FDUGFDOOHGDQGFDQDOVREHLPPHGLDWHO\ UHSHDWHGZLWK$127+(5&$5'9$1,6+,1* WKLVRQHZLWKRXWDQ\IRUFH 8QEHOLHYDEO\WKHVHFRQG IUHHO\QDPHGFDUG&$1127%()281'$OORIWKLVZLWKRXWHYHUWRXFKLQJWKHFDUGV1HYHUQRWHYHQ RQFH
&526652$'6 0$.,1*7+(&526652$'6'(&. /HW·VJHWD&526652$'6'(&.XSDQGUXQQLQJ,WZLOORQO\WDNHDIHZPRPHQWV7KLVZD\\RXZLOOEH DEOHWRZDONWKURXJKWKHFDUGVHOHFWLRQSURFHVV³DQGVXEVHTXHQWYDQLVK³ZLWKFDUGVLQKDQG7KLV ZLOOHQVXUHFODULW\DQGJLYH\RXDZDUPIX]]\IHHOLQJ'RWU\WKHYDQLVKRQ\RXUVHOI
([DFWO\ZKDWLVWKH&526652$'6'(&." ,WLVDGHFNFRQVLVWLQJRIFDUGVRIDVSHFLILFYDOXHWKDWFDQEHVKXIIOHGDQGPL[HG\HWZLOODOZD\V VKRZDSUHGHWHUPLQHGFDUG0,66,1*,QRUGHUWRPDNHRQH\RXZLOOQHHG ³2QHIXOOGHFN FDUGVQR-RNHUV ³$IHZH[WUDFDUGVIURPDPDWFKLQJGHFN )LUVWO\UHPRYHWKHIROORZLQJ(,*+7FDUGVIURP\RXUIXOOGHFNDQGSODFHWKHPVDIHO\WRRQHVLGHIRU QRZ
&526652$'6
6(77,1*83<285,17(1'('())(&76 RU7DUJHWSRVLWLRQV &526652$'6XVHV(,*+7',))(5(173$7+:$<6WRDFKLHYHDFRKHVLYHDQGXQLQWHUUXSWHGMRXUQH\ IURPEHJLQQLQJWRHQGRISHUIRUPDQFH7KDWMRXUQH\VLPSO\SXWLV ´$)5((/<&+26(1&$5'9$1,6+(6)5207+('(&.$1'5($33($56$7 $35('(7(50,1('326,7,21µ <2867$7(WKHLQWHQGHG),1$/'(67,1$7,21 RIWKH\HWWREHVHOHFWHGSOD\LQJFDUG LQ\RXURSHQLQJ ZRUGV³%()25(\RXKDQGWKHFDVHGGHFNWRDVSHFWDWRUIRUVDIHNHHSLQJ +RZHYHUXQWLOWKHVSHFWDWRUDFWXDOO\QRPLQDWHVD180%(5\RXGRQRWNQRZZKLFKRIWKHHLJKW SDWKV\RXZLOOWDNH7KHVHDUHQRW´RXWVµLQWKHFODVVLFVHQVH³EHFDXVH\RXQHYHUZDLYHUIURP\RXU LQWHQGHG DQGSUHYLRXVO\DQQRXQFHG GHVWLQDWLRQ7KH\DUHUDWKHU³´,17(1'('())(&76µ 7KHHLJKWFDUGV\RXSODFHGDVLGHHDUOLHU³&+6'&+6DQG '³DUH)25&(&$5'6
&526652$'6
'
EDQGDQDRUKDW RUXQGHUZDWFK
6
SHQGDQW
+
&
ZDOOHW
SRFNHW
'
ULJKWVRFN
6
OHIWVRFN
+
&
ULJKWVKRH
OHIWVKRH
7DUJHW&DUGVF\FOHXSWKHERG\LQDVFHQGLQJYDOXHIURPOHIWWRULJKW
&526652$'6
,I\RXGRQ·WZHDUDFDSRUKDWRIDQ\VRUWWKHQ\RXFDQSODFHWKHILQDOIRUFHFDUGIROGHGLQTXDUWHUV RU VPDOOHU 81'(5 <285 :$7&+
:5,7,1*$1,1752'8&725<6&5,37
'LDORJXH ´+L DQG WKDQNV IRU FRPLQJ DORQJ WKLV HYHQLQJ
1RWH ,·PVWDUWLQJZLWKWKH&526652$'6GHFNLQWKHSRFNHWWKDWFRQWDLQVDWDUJHWFDUG6RLQWKHLQWURGXFWRU\OLQHVRIWKH GLDORJXH,·PDPERWKUHIHUULQJWRWKHSRFNHWDQGWKH\HWWREHSURGXFHG'(&.ZLWKLQ
&526652$'6
´:KDW,·GOLNHWRVKRZ\RXQRZLVVRPHWKLQJ,FDOOP\PRQH\WULFN ZDOOHWWRWDEOH ,QIDFW LW·VSUREDEO\WKHUHDVRQ,·PVWDQGLQJLQWKHVHYHU\VKRHV OHIWDQGULJKWVKRHV EHIRUH\RX QRZ,WZLOOPHVVZLWK\RXUKHDGV KDWEDQGDQD 6LUZRXOG\RXDVVLVWPH" ´7KDQN \RX 3OHDVH WDNH WKLV VHDOHG GHFN DQG ZDWFK ZDWFK LQ SODFH RI KDWEDQGDQD LI VXEVWLWXWHG PHYHU\FORVHO\µ 35(6(17,1*&526652$'6 0DJLFHIIHFWVOLNH&526652$'6DUHDFRPSURPLVHEHWZHHQPDQ\GLIIHUHQWPHWKRGVDQG DSSURDFKHV,WKLQNZHZRXOGDOODJUHHWKDWQRWKLQJFDQEHDWD)5((/<VHOHFWHGFDUG6RDQ\ IRUFHXVHGLQWKLVW\SHRIHIIHFW0867EHUHPHPEHUHGDVEHLQJ´IUHHO\FKRVHQµRU´UDQGRPO\ DUULYHGDWµ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´µ $OORZ KLP WKH RSSRUWXQLW\WRFKDQJHKLVPLQGDQGUHPLQGKLPWKDWWKLVFKDQFH:$62))(5(',QIDFW RIIHULWUHSHDWHGO\ :H·OODVVXPHKHVWLFNVZLWK´µGHVSLWHPXFKFDMROLQJ $VWRQLVKLQJO\ \RX QRZ KDYH $// 7+( ,1)250$7,21 <28 1((' 72 &203/(7( 7+( ())(&7³WKHQXPEHUVHOHFWHGLV\RXU.(<WREULQJLQJLWDOOWRJHWKHU2QFHLW·VDQQRXQFHG \RXDUHDWWKH&526652$'6UHDG\WRZDONGRZQWKHFRUUHFWSDWK +HUH·VKRZ 67(3 0HQWDOO\ORFDWHWKHSRVLWLRQRIWKHWDUJHW´µDQGLGHQWLI\LW·VVXLWE\UXQQLQJWKURXJKWKH &+D6H' RUGHU RI WKH &526652$'6 6(48(1&( LQ \RXU KHDG 7KLV VSHFWDWRU·V )5((/< 6(/(&7('180%(5ZLOOJLYH\RXWKH7$5*(7326,7,21DQGWKH68,7WKDW\RXZLOOWKHQ QHHGWRIRUFH,QWKLVLQVWDQFHLW·VWKH+($576DQGWKH7$5*(7/2&$7,21,6<2855,*+7 6+2( 5HPHPEHUWKHFDUGVDVFHQGLQQXPHULFRUGHU837+(%2'<IURPOHIWWRULJKWLQ &+D6H'RUGHU³&+6'&+6 '
&526652$'6
67(3 1RZWKDW\RXNQRZWKH7$5*(7\RXFDQ5((1)25&(,7',5(&7/<PD\EHHYHQDGGLQJ VRPHSK\VLFDODFWLRQ)RUH[DPSOHLQWKLVLQVWDQFH\RXYDOLGDWHWKH ULJKWVKRH E\VD\LQJ VRPHWKLQJOLNH ´,·PJLYLQJ\RXRQHODVWFKDQFHWRFKDQJH\RXUPLQGGR\RXZDQWWR.,&.LW DURXQGDOLWWOHIXUWKHULQ\RXUKHDG"µ 67(3 &RQWLQXH´
&526652$'6
67(3
7XUQLQJWRWKHILUVWVSHFWDWRUUHPLQGKLP DQGWKHDXGLHQFH WKDWKHKDVKHOGWKHGHFN 6,1&(%()25(WKH´UDQGRPFDUGµZDVFUHDWHG+DYHKLPKROGWKHFDVHGGHFNLQWKHDLUDQG PDNH\RXUPDJLFDOJHVWXUHRULQFDQWDWLRQ³ZKDWHYHULWLV\RXGRWRFUHDWHWKDW´PRPHQWµ ZKHQDPDJLFDOHYHQWLVVXSSRVHGWRRFFXU
67(3
2QFHGRQHKDYHWKHVSHFWDWRUUHPRYHWKHGHFNIURPWKHFDVHDVNLQJKLPWRFRXQWWKH FDUGV³RQHDWDWLPHIDFHGRZQRQWRWKHWDEOH+DYHKLPFRXQWWKHP287/28'³ HWF 2QFH KH JHWV WR DQG KDV HPSW\ KDQGV WKH URRP VKRXOG IDOO GHDGO\ TXLHW ZLWK DQWLFLSDWLRQ 7KRXJKWV OLNH ´FRXOG LW SRVVLEO\ EHµ ZLOO VWDUW FUHHSLQJ XS IURP WKH XQGHUEHOO\RIDXGLHQFHFRQVFLRXVQHVV
67(3
´7ROG\RXWKLVWKLQJKDGDNLFNµ³\RXDGG 7KLVLVDQRWKHUYDOLGDWLRQRIWKHQRZNQRZQ VSHFLILFWDUJHWYHUEDOO\VHWWLQJ\RXXSIRUWKHHQGLQJ
67(3
´*RRQFKHFNSURSHUO\µ\RXDVN+DYHKLPWXUQWKHGHFNIDFHXSDQGDVNKLPWR/2&$7(DQG 5(029(WKH)5((/<6(/(&7('7+5((2)+($5762IFRXUVHKHZLOOQRWILQGLWLQWKH GHFN7REH685(KDYHKLPUHPRYH$//7+(7+5((6IURPWKHGHFN+HZLOOILQGWKH'6 DQG&EXW1277+(7+5((2)+($576'RQRWEHFRQFHUQHGWKDWDQ\RIWKHGXSOLFDWH SLFWXUHFDUGVZLOOEHQRWLFHGWKH\ZRQ·W7KHVSHFWDWRULVWRRSUHRFFXSLHGZLWKKLV´FRXQWµ DQGORRNLQJIRUWKHVSHFLILFFDUGZKLFKFDQ21/<%($6327&$5'7KHSLFWXUHFDUGVDUH PHDQLQJOHVVWRWKHVSHFWDWRU 7RILQLVKVD\³
67(3
´5HPHPEHU,VDLGWKLVKDGUHDONLFN³KHUH·VZKDW,PHDQWµ
67(3
'UDZDWWHQWLRQWR5,*+76+2(6ORZO\DQGIDLUO\WDNHLWRIIDQGWKHQDOORZWKHIROGHGFDUG WRGURSRXWLQWRIXOOYLHZ8QIROGWRUHYHDOWKHVHOHFWHGFDUGWRILQLVK 7KHSURFHGXUHLVH[DFWO\WKHVDPHQRPDWWHUZKDWQXPEHU%(7:((1LVFDOOHG
&526652$'6
5(9($/,1*7+(6(/(&7('&$5'$7,76),1$/'(67,1$7,21 7KHIXOOHIIHFWRI&526652$'6LVWKDWRI´WHOHSRUWDWLRQµ6RWKHFDUG´PXVWFRPHRXWWKHRWKHUHQGµ ³LILWLVWREHWUXHWRLWVSORW+DQGOHWKHDSSURSULDWHUHDSSHDUDQFHRIWKHFKRVHQFDUGDVIROORZV 6+2(6 %HLWWKHOHIWRUULJKWVKRHWKHUHYHDOLVWKHVDPH&DUHIXOO\UHPRYHWKHVKRHWLSWKHIROGHGFDUGIURP ZLWKLQDQGKDYHDGDULQJVSHFWDWRUXQIROGLW1RRQHZLOODVN\RXWRUHPRYH\RXURWKHUVKRH)RUWKDW WKRXJKWWRDULVHWKH\·GQHHGWRYDOLGDWHKRZ\RXFRXOGKDYHRWKHUFDUGVLQWKHUHPDLQLQJVKRH,W GRHVQRWKDSSHQ 62&.6 %HLWWKHOHIWRUULJKWVRFNWKHUHYHDOLVWKHVDPH7XUQWKH/()7VLGHRIWKHERG\WRZDUGWKHDXGLHQFH LIWKHUHYHDOLVIRUWKHOHIWVRFN'RWKHH[DFW23326,7(IRUWKHULJKWVRFN/LIW%27+SDQWOHJVDWWKH VDPHWLPHWRVKRZ%27+62&.6WKHQGURSWKH,1&255(&7SDQWOHJOHDYLQJ21/<7+(&255(&7 62&.DQGLW·VSURWUXGLQJFDUGLQVLJKW7KHZD\\RXKDGLQLWLDOO\VHWWKHWZRWDUJHWFDUGVRQWKH 6,'(6RIWKHOHJVPDNHVWKLVSRVVLEOH7KHFDUGQRWUHTXLUHGLVHDVLO\SXVKHGEHORZWKHVRFNOLQHDV \RXODWHUDGMXVW\RXUSDQW³MXVWLQFDVHVRPHRQHZDQWVDQRWKHUSHHN 32&.(7 +DYHWKHVSHFWDWRUJHQWO\SDW\RXGRZQPDNLQJVXUHDOOSRFNHWVDUHHPSW\7KHQKDYHKHUSODFHKHU KDQGLQWRWKHWDUJHWSRFNHWUHPRYLQJWKHVLQJOHFDUG,W·VDSHUIHFWUHYHDO :$//(7 $OORZWKHVSHFWDWRUWRUHPRYHREMHFWVRQHDWDWLPHIURP\RXUZDOOHWXQWLOVKHGLVFRYHUVD6,1*/( FDUG³WKHVHOHFWLRQ$V\RXFOHDUO\RQO\KDYHRQHZDOOHWDQGLW·VEHHQLQSODLQYLHZLW·VWKHSHUIHFW UHYHDO 3(1'$17 $OORZVSHFWDWRUWRXQEXWWRQ\RXUVKLUWUHYHDOLQJWKHIROGHGFDUGFOLSSHGWR\RXUSHQGDQWULJKWRYHU \RXUKHDUW )RU%,*DXGLHQFHVGRQ·WIROGWKHFDUGLQTXDUWHUV,QVWHDGXVLQJDKROHSXQFKPDNHD KROHDWRQHFRUQHURIWKHFDUGDQGWKUHDG\RXUQHFNFKDLQWKURXJKLW7KH)8//&$5'SODVWHUHG DFURVV\RXUFKHVWLVDVLJKWWREHKROG 1RWLFH,VDLG<285FKHVW $JDLQDQRWKHUSHUIHFWUHYHDOZLWK DOORXWVFDQFHOOHG +$725%$1'$1$ 7LS\RXUKDWRUXQIXUOWKHEDQGDQDWRPDNHWKHUHYHDO,OLNHWRWU\DQGSRVLWLRQWKHIROGHGFDUGVR WKDWLWVWD\VFHQWHUHGDWRSP\KHDGDIWHUWKHKDWLVUHPRYHG7KHQ,JHQWO\GURSWRP\NQHHV YHU\ WKHDWULFDO WR PDNH WKH UHYHDO
DSSHQGL[
&526652$'6 DSSHQGL[ 7+(&2,17266%/8)) DOWHUQDWHIRUFHRIVXLW 2QHRIWKHQHDWHVWZD\VRIIRUFLQJDVXLWLVZLWKDFRLQWRVV$FRLQLVRIFRXUVHWKH´FODVVLFµUDQGRP QXPEHUJHQHUDWRUVRLWDOOVHHPVWRILWQLFHO\8VH´(TXLYRTXHµEXWDVVLJQWKHFKRLFHVWRDFRLQWRVV ([DPSOH 6D\´:H·OOPDNH+($'6%/$&.DQG7$,/65('µ 1RZLI\RXXVHHLWKHUDGRXEOHVLGHGFRLQRUDPHWKRGRI´FRQWUROOLQJWKHWRVVµ\RXFDQPDNHWKH RXWFRPHILW5HSHDWRQFHPRUHIRUWKHILQDOVXLWVHOHFWLRQ6HH*DU\.RV]QLWVN\·V´+HDGVRU7DLOVµIRUDQ DPD]LQJFRQWURORIWKHWRVV
27+(5'(67,1$7,2132,176 *RWRH[WUHPHV
287,17+(23(17$5*(76(7 3DXO+DUULVVXJJHVWHGWKDWLWZRXOGEHQLFHWRKDYHHLJKWVROLGRXWV³LQWKHRSHQ³VR\RXGRQ·WKDYHWR ORDGXS\RXUERG\5REHUW)DUPHUFRQFXUUHG+HDOVRUHPLQGHGPHWKDW\RXFRXOGMXVWJRWKH´+LPEHU :DOOHWµURXWHWKXVVXEVWDQWLDOO\UHGXFLQJWKHFKDQFHVRISDSHUFXWV
&526652$'6 DSSHQGL[ 620(&85,2867+,1*6$%2877+(&526652$'66(48(1&( 7KH&URVVURDGV6HTXHQFH &+6'&+6 ' FRQWDLQVVRPHSHFXOLDUSURSHUWLHV
&22/'2'*(:+(1:,7+)5,(1'6 :KHQ\RX·UHZLWKPDJLFDOEXGGLHVDQGFRXOGSRVVLEO\EHVKDULQJDXGLHQFHVDVPD\EH\RXZRXOGDWD PDJLFFRQYHQWLRQWKHQ\RXFDQXVHWKLVEROGEOXII.H\LQ\RXUPDJLFEXGGLHVZLWKWKHLQVWUXFWLRQV ´+H\LI,DVN\RXIRUDVXLWMXVWJLYHPHEDFNWKHILUVWRQHLQWKHVHTXHQFH6RLI,VD\KH\SLFND VXLW³KHDUWVFOXEVGLDPRQGVRUVSDGHV\RX·OODQVZHU+($576µ2QFHKHXQGHUVWDQGV\RX·OOKDYHDQ LQVWDQWVWRRJHZKR\RXFDQNH\RQWKHIO\WRJLYH\RXWKHVXLW\RXUHTXLUH7KHHQWLUHVHOHFWLRQRIWKH SOD\LQJFDUGERWKWKHQXPEHUDQGVXLWEHFRPH3(5)(&7
&526652$'6 DSSHQGL[ ,167$175(3($7%/8)) 7KHYDQLVKDQGUHDSSHDUDQFHRIDQ\QDPHGFDUGLVVWULNLQJ+RZDERXWZHUHSHDWLW"
.526652$'6 7KLVLV&URVVURDGVZLWKD´.µ²WLSSLQJWKH.DSWR.HQWRQ :KHQ \RX WKLQN RI WKH FRPPHUFLDO YHUVLRQV RI WKH ´$Q\ 1DPHG &DUG LQ :DOOHWµ HIIHFW .HQWRQ .QHSSHU·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
&526652$'6 DSSHQGL[ ,I\RXZHUHWRXVHGRXEOHIDFHFDUGVIRU\RXUWDUJHWVHW LQVWHDGRIVLQJOHFDUGV \RXFDQGHPRQVWUDWHD VXFFHVVUDWHZKLOHKDYLQJRQO\WDUJHWFDUGVWRFRQFHDO
7+('(9,/·63((. $´&URVVURDGV6HWµPD\EHFRQILJHUHGDVLQGLFHVDURXQGWKHIRXUFRUQHUVRIWZRFDUGV WRWDOHLJKW FRUQHUV $KLWLVUHYHDOHGE\´SHHNLQJµ EHQGLQJWKHFDUGXSDWWKHFRUQHUIRUDSHHN *UHDWIRUDQ LQWLPDWH´GHYLOPHHWVJDPEOHUDWWKH&URVVURDGVµSUHVHQWDWLRQ7KH7:2FDUGVKHOGIDFHWRIDFH FDQDOVREHXVHGDVDPXOWLSOHSUHGLFWLRQ
7+(*2/'(1020(17 'RHV&URVVURDGVRIIHUDVROXWLRQWRWKH´+RO\*UDLOµRIFDUGPDJLF³WKHXOWLPDWHVWULSSHGWRWKHERQH YHUVLRQRI´$1<&$5'&$//('µ" 1RGHFNLVXVHG$VLQJOHFDUGLVSODFHGIDFHGRZQRQWKHWDEOH$VSHFWDWRUVLJQVWKHEDFNRIWKHFDUGWR UXOHRXWVXEVWLWXWLRQ$QXPEHUDQGDVXLWDUHFDOOHG%RWKDUHDGGHGWRJHWKHUWRGHVFULEHDVLQJOH SOD\LQJFDUG7KHVLJQHGFDUGZKLFKKDVDOZD\VEHHQLQIXOOYLHZLVWXUQHGRYHU³,70$7&+(67+( )5((/<6(/(&7('&$5'7KHDXWKRUKDVDVROXWLRQIRUWKLV&DQ\RXZRUNRQHRXWWRR"
ERQXV
%218667811(5
&5$&$$1 ´&526652$'6 $Q\&DUG$W$Q\1XPEHUµ
%\ 6WHYH6KXIWRQ %HQ+DUULV 7KLVLVWKH3(5)(&79(56,21 RIWKH´$Q\&DUG$W$Q\1XPEHUµ3ORW 'HFNLQWURGXFHGEHIRUH\RXVWDUW VXFFHVVUDWH 3HUIRUPHU'2(6127WRXFK WKHFDUGV(9(5
%218667811(5
&5$&$$1 ´&526652$'6 $Q\&DUG$W$Q\1XPEHUµ
%\6WHYH6KXIWRQ %HQ+DUULV
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
%218667811(5
&5$&$$1 ´&526652$'6 $Q\&DUG$W$Q\1XPEHUµ
%\6WHYH6KXIWRQ %HQ+DUULV
+
RZFDQWKLVSRVVLEO\EHGRQH"/LNHDOORWKHUHIIHFWVLQPDJLFWKHUHPXVWEHDFRPSURPLVH 6KDOOZHXVHDFRQIHGHUDWH"3HUKDSVRXUHWKLFVZLOODOORZLWHVSHFLDOO\RQDVWDJHEXWLWZRQ W KROGXSYHU\ZHOOLQDFORVHXSHQYLURQPHQWZLWKWKHOLNHOLKRRGRIUHSHDWSHUIRUPDQFHV7KH &5$&$$1XVHVQRFRQIHGHUDWHV6KDOOZHXVHVRPHW\SHRIPHFKDQLFDOGHFNZLWKH[WUDFDUGVDQG PDWKHPDWLFDO IRUPXODH" 7KLV ZRXOG UHTXLUH WKH PDJLFLDQ WR KDQGOH WKH GHFN 7KH &5$&$$1 LV FRPSOHWHO\VHOIFRQWDLQHGDQGWKHPDJLFLDQGRHVQRWWRXFKWKHGHFN 2XUFRPSURPLVH":HXVHWKH&URVVURDGV)RUFHWRVLPXODWHDIUHHFKRLFH$VSHFLDOO\SUHSDUHGGHFNRI FDUGVLVWKHRWKHULQJUHGLHQWZKLFKSURYLGHVDVROXWLRQWKDWPHHWVWKHPRVWLPSRUWDQWFULWHULDRIWKH HIIHFW:HQRZKDYHZKDWPD\EHWKHEHVWVROXWLRQHYHURIIHUHGIRUWKLVHIIHFW³DVROXWLRQWKDWPHHWV WKHNH\FULWHULDRIWKHHIIHFW\HWLVSUDFWLFDOHQRXJKWRSHUIRUPXQGHUDQ\FLUFXPVWDQFHV7KH+RO\ *UDLO":HWKLQNVRDQGDIWHUSHUIRUPLQJWKLVPLUDFOH\RXZLOOGHFLGH 7KH &URVVURDGV )RUFH OLPLWV WKH VHOHFWLRQ WR RQH RI HLJKW FDUGV ZKLOH JLYLQJ WKH LPSUHVVLRQ RI D FRPSOHWHO\IUHHFKRLFHIURPDQHQWLUHGHFN,IZHKDYHDGHFNFRPSRVHGPRVWO\RIWKHVHFDUGVDQGZH KDYHDVFKHPHWRUHDFKDQ\RIWKHHLJKWZLWKRXWDQ\PDQLSXODWLRQRXUVROXWLRQLVFORVHDWKDQG 0$.,1*$&5$&$$1'(&.
%218667811(5
&5$&$$1 ´&526652$'6 $Q\&DUG$W$Q\1XPEHUµ
%\6WHYH6KXIWRQ %HQ+DUULV
7KLVVSHFLDOO\SUHSDUHGGHFNLVSODFHGLQWKHER[DQG\RXDUHUHDG\WRSHUIRUP
PLQXVRU NHHSMRNHUV PLQXVRU QH[WFDUG
7KLVVKRZVWKHSRVLWLRQRIWKHFDUGVLQWKHGHFNZKHQWKH-RNHUVDUHUHPRYHG 1RZ\RXFDQJHWWRDQ\RQHRIWKHFDUGVHDVLO\,IWKH\SLFNDQHYHQQXPEHUEODFNFDUGLWZLOOEHLQ WKHILUVWKDOIRIWKHGHFN,IWKH\SLFNDQRGGQXPEHUUHGFDUGLWZLOOEHLQWKHVHFRQGSDUWRIWKHGHFN $33/<,1*7+(&526652$'6)25&( , OOZDON\RXWKURXJKDFRXSOHRIH[DPSOHVRIKRZWKLVZRUNV ,WVWDUWVZLWKWKH&URVVURDGV)RUFH ,VWDUWZLWKWKHSDWWHU ,QHHG\RXWRVHOHFWDQXPEHUEHWZHHQRQHDQGWHQµ /HW VVD\IRUH[DPSOHWKH\VHOHFW 1RWLFH,DVNIRUDQXPEHU%()25(WHOOLQJWKHPDQ\WKLQJDERXWWKHHIIHFW7KH\GRQ WNQRZZK\WKH\ DUHVHOHFWLQJDQXPEHU\HWVRWKH\DUHFRPSOHWHO\UHOD[HGDQGQRWWU\LQJWREHIR[\DERXWLW ,VD\(LJKW$QH[FHOOHQWQXPEHUIRUDFDUG 7KLVLVWKHILUVWFOXHWKH\KDYHWKDW, PFUHDWLQJDFDUG 'R\RXIHHOWKDW,IRUFHG\RXLQDQ\ZD\WRVHOHFWWKDWQXPEHU"7KH\VD\QRHPSKDVL]LQJWKHIUHH FKRLFHVRIDU7KH\DUHVWLOOIUHHRIFRXUVHWRSLFNDQHZQXPEHU
%218667811(5
&5$&$$1 ´&526652$'6 $Q\&DUG$W$Q\1XPEHUµ
%\6WHYH6KXIWRQ %HQ+DUULV
1RZZHDOUHDG\NQRZDFRXSOHRIWKLQJV:HNQRZWKHFDUGLVIRXQGLQWKHILUVWKDOIRIWKHGHFN HYHQ QXPEHUEODFNFDUG DQGZHNQRZLWLVWKHRI6SDGHV ,VD\%XWWKHUHDUHHLJKWVLQDGHFN³EODFNHLJKWVDQGUHGHLJKWV7RJHWDWDVXLWZHQHHGWRHOLPLQDWH HLWKHUWKHUHGRUEODFN%HWZHHQWKHUHGDQGWKHEODFNZKLFKZRXOG\RXFKRRVH")RUFHEODFN 1RZWKHUHDUHVSDGHVDQGFOXEVIRUEODFNFDUGVDQGDJDLQZHQHHGWRHOLPLQDWHRQHRIWKHVHVXLWV6R EHWZHHQVSDGHVDQGFOXEVZKLFKZRXOG\RXSUHIHU")RUFHVSDGHV 1RZ\RXKDYHVHOHFWHG DFDUGDVIDLUO\DVFDQEH³DFFRUGLQJWR\RXURZQFKRLFHV³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³,KDYHQ WFRPHDQ\ZKHUHQHDUWKHP³WUXH" 7KH\DJUHH $WWKLVSRLQW\RXFDQH[SODLQWKHH[SHULPHQWLQ\RXURZQVW\OHYDU\LQJ\RXUZRUGVGHSHQGLQJRQ \RXUSUHGLFDPHQW)RUH[DPSOHLI\RXDUHDPHQWDOLVW\RXPD\EHGHPRQVWUDWLQJRQHRIDQ\QXPEHU RIHIIHFWV WKHDELOLW\WRLQIOXHQFHWKHPLQGWKHDELOLW\WRSUHGLFWDVHOHFWLRQLQDGYDQFHHWF$PDJLFDO DSSURDFKPLJKWEHWKHDELOLW\WRDOWHUWKHIRUFHVRIQDWXUHDQGUHDUUDQJHWKHFDUGVWR\RXUOLNLQJZLWK WKHPHUHXWWHUDQFHRIDPDJLFDOSKUDVHHWF
&2817,1*727+(&+26(1180%(5 7+(5(9($/6 3OHDVHUHPRYHWKHHQWLUHGHFNIURPWKHER[EXWEHYHU\FDUHIXOQRWWRGLVWXUEWKHRUGHURIWKHFDUGV 0RQLWRUWKHPZKLOHWKH\GRWKLVVRWKH\GRQ WKDYHDQDFFLGHQW 1RZEDFNWRWKHVHOHFWHGQXPEHU7KLVLVWKHFUX[RIWKHELVFXLWDQGWKHVFKHPHPDNLQJLWDOOZRUN7KH IRUFHFDUGVDUHLQEORFNVRIVR\RXZLOOQHYHUEHPRUHWKDQFDUGVDZD\IURPDQDXWRPDWLFGLUHFW KLWUHTXLULQJQRLQWHUIHUHQFH,QVWHDGRIKDYLQJDGLUHFWKLWRIWKHWLPHWKHMRNHUVLQFUHDVHWKH
%218667811(5
&5$&$$1 ´&526652$'6 $Q\&DUG$W$Q\1XPEHUµ
%\6WHYH6KXIWRQ %HQ+DUULV
GLUHFWKLWUDWHWRDVIROORZV 6D\WKH\FKRVHWKHQXPEHU³DGLUHFWKLWDFFRUGLQJWRWKHFULEVKHHW 6D\7KHILUVWWZRFDUGVDUHMRNHUV³ZHZRQ WEHQHHGLQJWKRVH³ZRXOG\RXSOHDVHUHPRYHWKHP" &KHFNWRPDNHVXUHWKH\DUHMRNHUV³JRRG"7KH\DJUHH ´
%218667811(5
&5$&$$1 ´&526652$'6 $Q\&DUG$W$Q\1XPEHUµ
%\6WHYH6KXIWRQ %HQ+DUULV
7KHRQO\SRVVLELOLW\OHIWLVWKDWWKH\VHOHFW RUDQXPEHUWKDWLVFDUGVRII .HHSWKHMRNHUVDQGXVHWKHQH[WFDUGSOR\³WKH\GHDO DVWKH\VHOHFWHGDQGWKHQGHDOWKHQH[WFDUG RIIWRWKHVLGH ,QDOOLQVWDQFHVWKHILQLVKDQGVKRZDUHWKHVDPH 1RZLIWKH\SLFNHGRQHRIWKHUHGHYHQFDUGV\RXZRXOGDOWHUWKHSDWWHUIRUQXPEHUVHOHFWLRQ /HW VPDNHWKLVYHU\GLIILFXOW³QDPHDQXPEHUEHWZHHQDQG$OOWKHUHVWLVWKHVDPH :K\WKHH[WUDLQGLIIHUHQWFDUGVDWWKHHQG"7KDWZD\\RXFDQVSUHDGDWWKDWSRLQWRIWKHWULFN³LW PDNHV D PRUH FRQYLQFLQJ VKRZ WKDQ KDYLQJ RQO\ FDUGV WKHUH $ VPDOO VXEWOHW\ PDNLQJ D ELJ GLIIHUHQFH ,WSOD\VHYHQHDVLHUWKDQLWUHDGVDV\RXZLOOGLVFRYHUZKHQ\RXWU\LW,VWLOOXVHWKHFULEVKHHW³ZK\ WDNHDQ\FKDQFHV"$OO\RXUHDOO\QHHGWRGLVFHUQLVLI\RXDUHNHHSLQJWKHMRNHUVDQGLI\RXDUHXVLQJ WKHQH[WFDUGSOR\ :KDW\RXQRZKDYHLQ\RXUSRVVHVVLRQLVZKDW,EHOLHYHWREHRQHRIWKHVWURQJHVWGHPRQVWUDWLRQVLQDOO RIFDUGPDJLF(QMR\WKHSRZHU
72:$5'63(5)(&7,21 &DQZHEULQJWKH&URVVURDGV$&$$1FORVHUWRSHUIHFWLRQ"$IWHUDOOWKHSHUIHFWYHUVLRQRIWKLVWULFN ZRXOGQ WEHDWULFNDWDOO³LWZRXOGEHUHDOPDJLF6KRUWRIWKDWZHZLOODOZD\VKDYHDFRPSURPLVHLQ DQHIIHFWRIWKLVQDWXUH³RUDQ\RWKHUHIIHFWIRUWKDWPDWWHU:HKDYHZLWKWKLVYHUVLRQHOLPLQDWHG VRPHUDWKHUODUJHFRPSURPLVHVWKDW,IRURQHGRQRWZDQWWRPDNH 7KDQNVWRWKH&URVVURDGV)RUFHZHQRZKDYHDPHWKRGWKDWSUHVHUYHVZKDW,FRQVLGHUWREHWKHPRVW LPSRUWDQWIHDWXUHVRIWKHHIIHFW,QVWHDGRIFRPSURPLVLQJWKHPRVWLPSRUWDQWREVHUYDEOHSURFHGXUH WKHSHUIRUPHUQHYHUWRXFKHVWKHFDUGV ZHSURYLGHWKHLOOXVLRQRIIUHHFKRLFH³VXFFHVVIXOO\ +DYLQJWDNHQWKHRSSRUWXQLW\WRDQDO\]HWKLVPHWKRGXQGHUDPLFURVFRSHDGGLWLRQDOFRQVLGHUDWLRQV DQGVROXWLRQVKDYHEHHQIRXQG :LWK WKH PHWKRG GHVFULEHG DERYH WKHUH DUH VWLOO D FRXSOH LVVXHV ZHOO ZRUWK DGGUHVVLQJ ,W ZLOO HYHQWXDOO\RFFXUWRDQ\RQHWDNLQJWKHWLPHWRWKLQNGHHSO\DERXWWKLVPHWKRGRUDFFLGHQWDOO\WKURXJK GLVFRYHU\WKDWWKHUHDUHVLWXDWLRQVWKDWPD\DULVHUHTXLULQJDVROXWLRQ :LWKWKHH[SHQVHRIWZRPRUHFDUGV³D&DQGDQ6SRVLWLRQHGUHVSHFWLYHO\DWFDUGSRVLWLRQQXPEHUV DQGLQRXUGHFNZHFDQHOLPLQDWHWKHUDUHSRVVLELOLW\RIWKHIROORZLQJIO\LQWKHRLQWPHQW LIWKH& LVVHOHFWHGLWFDQQRWDSSHDULQSRVLWLRQRIWKHGHFN)XUWKHUPRUHLIWKH6LVVHOHFWHGLWFDQQRW
%218667811(5
&5$&$$1 ´&526652$'6 $Q\&DUG$W$Q\1XPEHUµ
%\6WHYH6KXIWRQ %HQ+DUULV
VKRZXSLQWKHWKRUWKSRVLWLRQ
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³QRWWKRVHDV,MXVWVDLGWKHPEXWDQ\QXPEHU EHWZHHQDQG 7KLVDGGHGSDWWHUZRXOGRQO\EHQHHGHGZKHQWKH+RU 'LVVHOHFWHG³RQHTXDUWHURIWKHWLPH:LWK FDUHIXOVHOHFWLRQRIDVSHFWDWRULWZLOOQRWEHQHHGHGDWDOO0RVWIRONVZRXOGQRWFKRRVHRUERWK E\SHUFHQWDJHDQGSV\FKRORJ\*LYHQDZLGHVSUHDGRWKHUQXPEHUVZLOODOPRVWDOZD\VFRPHXS:K\ QRWSOD\LWVDIH"
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
%218667811(5
&5$&$$1 ´&526652$'6 $Q\&DUG$W$Q\1XPEHUµ
%\6WHYH6KXIWRQ %HQ+DUULV
7KHRWKHUGHFNWKHUHGRGGGHFNZLOOEHSUHSDUHGWKHVDPHZD\VXEVWLWXWLQJWKH+'+ 'IRUWKH &6&6UHVSHFWLYHO\ ,QSHUIRUPDQFH\RXZLOOKDYHWKHGHFNVLQ\RXUFDVHRUOLNHPHLQ\RXUSRFNHWVRQHLQWKHOHIWSRFNHW DQGRQHLQWKHULJKW %HIRUHLQWURGXFLQJWKHGHFNRUJLYLQJDQ\LQGLFDWLRQWKDWFDUGVZLOOEHLQYROYHGPDNHWKHVLPSOH UHTXHVW 3OHDVHJLYHPHDQXPEHUEHWZHHQRQHDQGWHQ DOD&URVVURDGV)RUFH 7KHYHU\VHFRQGWKH\ SURYLGHDQXPEHU\RXZLOONQRZZKLFKGHFNWRXVH/HW VDVVXPHWKH\VHOHFW,PPHGLDWHO\KDQG WKHPWKHUHGRGGGHFNDQGFRQWLQXH 3OHDVHKROGWKLVGHFN³,GRQRWZDQWWRWRXFKLWDWDQ\WLPH1RZGLG\RXVD\VHYHQ"6HYHQZRXOGEHD SHUIHFWFKRLFHIRUDFDUGEXWZHVWLOOQHHGDVXLWHWFFRQWLQXLQJZLWKWKH&URVVURDGV)RUFH 1RZZKHQLWLVWLPHWRDVNIRUDSRVLWLRQQXPEHU\RXFDQUHTXHVWDQ\QXPEHUEHWZHHQDQG7KH GHFNLVLQWKHVSHFWDWRU VKDQGVEHIRUHWKHFDUGLVQDPHGDQGWKHUDQJHRISRVVLEOHORFDWLRQVKDV GRXEOHG³\RXZLOOQHYHUPLVV ,KRSH\RXKDYHDVPXFKIXQVWXQQLQJ\RXUDXGLHQFHZLWKWKLVPLUDFOHDV,KDYHKDG³DQGWKHQVRPH
