6RPHWKLQJDQFLHQWDQGSRZHUIXOLVKLGGHQLQVLGHWKHS\UDPLG &RQVWUXFWHGE\WKHSULPLWLYHDOLHQFXOWXUH7KHFUHZRIWKH83) &HQWLVSHHGPXVWGLVFRYHUZKDWLWLVWRVDYHWKHSODQHW
/DVW5HYLVLRQ
6RPHWKLQJDQFLHQWDQGSRZHUIXOLVKLGGHQLQVLGHWKHS\UDPLG &RQVWUXFWHGE\WKHSULPLWLYHDOLHQFXOWXUH7KHFUHZRIWKH83) &HQWLVSHHGPXVWGLVFRYHUZKDWLWLVWRVDYHWKHSODQHW
67$5 )5217,(56 :,=$5'6 2) 7+( &2$67 DQG WKH :,=$5'6 2) 7+( &2$67 ORJR DUH WUDGHPDUNV EHORQJLQJ WR :L]DUGV RI WKH &RDVW ,QF D VXEVLGLDU\ RI +DVEUR ,QF DQG DUH XVHG KHUHZLWKRXWSHUPLVVLRQ:L]DUGVRIWKH&RDVW$OO5LJKWV5HVHUYHG7KHIUHHGLVWULEXWLRQ RI WKLV UHYLVHG HGLWLRQ RI WKH RXWRISULQW JDPH V\VWHP LV QRW LQWHQGHG WR GHWUDFW LQFRPH IURP :L]DUGVRIWKH&RDVW
$/3+$6HFWLRQ
$OSKD6XEVHFWLRQ
+RZ7R8VH 7KLV0RGXOH
6WDUPLVWLVSOD\HGZLWKIRXUWRHLJKWSOD\HUFKDUDFWHUV 3&V RI DQ\ JDPH UDFH
$EEUHYLDWLRQV
$EEUHYLDWLRQVXVHGLQVWDWLVWLFVDUHOLVWHGEHORZ
090RYHPHQW ,0,QLWLDWLYH0RGLILHU 565HDFWLRQ6SHHG 67$6WDPLQD $77$WWDFN6FRUH '0'DPDJH
6'6SHFLDO'HIHQVH 13&1RQ3OD\HU&KDUDFWHU 5:5DQJHG:HDSRQ6FRUH 00HOHH6FRUH 363XQFKLQJ6FRUH 6$6SHFLDO$WWDFNV
0RYHPHQW
&KDUDFWHUV VKRXOG XVH WKH PRYHPHQW IDFWRUV OLVWHG LQ WKH UXOHV 6WDQGDUG PRYHPHQW LV QRW DIIHFWHG E\ 6WDUPLVW V JUDYLW\ RU DWPRVSKHUH 6HH 6\VWHP %ULHI 7HUUDLQDIIHFWVPRYHPHQWDVIROORZV 3ODLQV7KHSODLQVDUHDFRQVLVWVRIUROOLQJKLOOVFRYHUHG E\ JUDVV P KLJK 9LVXDO VLJKWLQJ IRU FKDUDFWHUV WUDYHOLQJRQIRRWLQWKHSODLQVDUHDLVP,IWKH FKDUDFWHUV DVN KRZ IDU WKH\ FDQ VHH UROO G DQG PXOWLSO\ WKDW UHVXOW E\ 7KH WRWDO LV WKH GLVWDQFH LQ
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
0DSV
0DSV DUH LQFOXGHG RI WKH IROORZLQJ DUHDV WKH ULIW ODQGLQJVLWHWKH+HOLRSHYLOODJHWKHZDUWDQNDQGWKH 6DWKDU WUDLQLQJ EDVH DQG ZHDSRQV EXQNHU 7KH PDSV JLYHQ WR SOD\HUV DUH WKRVH RI WKH ULIW ODQGLQJ VLWH DQG WKH+HOLRSHYLOODJH
3OD\HU&KDUDFWHU(TXLSPHQW
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
5DQGRP(QFRXQWHUV
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
5HTXLUHG(QFRXQWHUV
5HTXLUHG HQFRXQWHUV DUH HVVHQWLDO WR SOD\ DQG PD\ WDNHSODFHDWYDULRXVWLPHVRUDWGLIIHUHQWORFDWLRQVRQ WKHPDS$VUHIHUHH\RXPD\KDYHWRGHFLGHZKHQDQG ZKHUH WKH HQFRXQWHU ZLOO WDNH SODFH VR LW LV HVVHQWLDO WKDW \RX NHHS WKH HQFRXQWHUV LQ PLQG GXULQJ WKH JDPH
3ODQQHG(QFRXQWHUV
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
$OSKD6XEVHFWLRQ
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
7KH+HOLRSHV
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
RILWVNLQG7KHYLOODJHLVORFDWHGQH[WWRWKHULYHUDQG FRQWDLQV UHDVRQDEO\ FRPSOH[ KRPHV 7KH EXLOGLQJV KRXVH IDPLOLHV DQG WKHLU SULPLWLYH JRYHUQPHQW 7KH YLOODJHUVDUHWKHRQO\+HOLRSHVZKRDUHQRWQRPDGLF
7KH:DU7DQN
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
7KH6DWKDU
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
$OSKD6XEVHFWLRQ
3ORW6\QRSVLV
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
%HWD6XEVHFWLRQ
%(7$6HFWLRQ
*HQHUDO1RWHV
*LYH WKH SOD\HUV WKH 5LIW ODQGLQJ 0DS DQG WKH 3OD\HU &KDUDFWHU %DFNJURXQG 5HSRUW (YHQWXDOO\ WKH 3&V VKRXOG UHDFK WKH YLOODJH KRZHYHU OHW WKHP PRYH WRZDUG DQG WKURXJKWKHIRUHVWLQDQ\PDQQHUWKH\ZLVK
%HWD6XEVHFWLRQ
5DQGRP (QFRXQWHUV
5ROOIRUUDQGRPHQFRXQWHUVHDFKGD\DQGQLJKW8VH7DEOH 1RUPDO $OLHQ 3ODQWV DQG $QLPDOV RQ S $OVR UROO IRU DQ HQFRXQWHU ZLWK 6WDUPLVW FUHDWXUHV IURP 7DEOH RQ S 7KH W\SH RI HQFRXQWHU \RX XVH ZLOO GHSHQG RQ WKH WHUUDLQ RYHUZKLFKWKH3&VDUHWUDYHOLQJ
%HWD6XEVHFWLRQ
3ODQQHG (QFRXQWHUV
67$572)7+($'9(1785(
6SUHDG EHIRUH \RX LV D GHHS ULIW YDOOH\ PLVW\ LQ WKH GLVWDQFH 2Q HLWKHU VLGH VRDU WKH WRZHULQJ VWRQH ZDOOV RI WKH ULIW IRUELGGLQJ DQ\ DVFHQW 6WUDLJKW DKHDG JHQWOH UROOLQJ KLOOV FRYHUHG LQ WDOO ZDYLQJ JUDVVHV PHUJH ZLWK D PDVVRIJUHHQIRUHVW 7KH966&HQWLVSHHGKDVD9UXVNSLORWDQGHQJLQHHUZKRZLOO XQGHU DOO FLUFXPVWDQFHV UHPDLQ ZLWK WKH VKLS ,I IRU DQ\ UHDVRQ FKDUDFWHU VWDWLVWLFV DUH QHHGHG IRU WKHP XVH WKH DYHUDJHYDOXHRIIRUDOOUDFHV
120$'6$0%86+3$57<
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
$V \RX HQWHU WKH WKLFN JURXSLQJV RI WUHHV PDVVHV RI ORZ KDQJLQJ EUDQFKHV VXUURXQG WKH SDUW\ 7UDYHO LV VORZ DQG YLVLRQ LV OLPLWHG 6XGGHQO\ \RX KHDU D ORXG VFUHHFK DQG ZKL]]LQJ VRXQGV DV VPDOO VWRQHV IO\ SDVW \RXU HDUV 7KH VWRQHV VHHP WR EH FRPLQJ IURP EHQHDWK WKH WUHHV DQG \RXJOLPSVHZKDWDSSHDUWREHSLQFHUOLNHKDQGV 1RPDG+HOLRSHV 67$5636SLQFHUV,05:0 7UDJRNKDQ 67$5636SLQFHUV,05:0 :HDSRQVVWRQHEXOOHWV 2XW RI WKH WUHHV EXUVW WKH +HOLRSHV OHG E\ 7UDJRNKDQ
+(5(&20(7+(9,//$*(+(/,23(6
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
*DPPD6XEVHFWLRQ
*HQHUDO1RWHV
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
*$00$6HFWLRQ
ZKDWWKH3&VZDQW3OD\WKLVDVDWRZQFLW\HQFRXQWHUXVLQJ DYHUDJH +HOLRSH VWDWV IRU YLOODJHUV LI QHHGHG ,Q JHQHUDO +HOLRSHV ZLOO DOORZ WKH 3&V IUHH UDQJH RI WKH YLOODJH EXW ZLOO ILJKW DQ\RQH ZKR DSSURDFKHV WKH S\UDPLG WHPSOH RU ULYHU KXWV7KH\ZLOOIUHHO\VSHDNDERXWWKHLUUHOLJLRXVFHUHPRQLHV RU DERXW WKH VDFUHG UHOLFV LQ WKH KXWV RQ WKH ULYHU 8VH WKH EDFNJURXQG LQIRUPDWLRQ WR JXLGH \RX LQ UHVSRQGLQJ WR TXHVWLRQV $QHPSW\KXW ZLOOEHWXUQHGRYHUWRWKH3&VLIWKH\DUH IULHQGO\WRWKHYLOODJHUVDQGKDYHQRWFDXVHGWURXEOH
*DPPD6XEVHFWLRQ
5HTXLUHG (QFRXQWHUV
$5,9(5&(5(021<
FHUHPRQ\ ZLOO WDNH SODFH LQ WRUFKOLJKW $OO ORFDWLRQV PHQWLRQHG LQ WKH DERYH GHVFULSWLRQ DUH RQ WKH YLOODJH PDS DQG IXOO\ GHVFULEHG EHORZ XQGHU 3ODQQHG (QFRXQWHUV´ ,I WKH\ KDYH PDGH IULHQGV ZLWK WKH +HOLRSHV DQG D +HOLRSH LV ZLWKWKHPWKH\PD\EHWROGWKHIROORZLQJLQIRUPDWLRQ 7KHS\UDPLG LVWKHVSRWPRVWVDFUHGWRWKH+HOLRSHV DQG RQO\ WKH SULHVWV DQG WKRVH +HOLRSHV PDNLQJ DSSURSULDWHVDFULILFHVDUHDOORZHGRQLWVSODWIRUP 7KHSULHVWV-LYHLQWKHKXWV RXWRQWKHULYHU ,QWKHULYHUKXWVDUHVWRUHGPDQ\UHOLJLRXVREMHFWVDQGQR RQHLVDOORZHGQHDUWKHPH[FHSWWKHSULHVWV 7KHJRGVOLYHLQWKHVN\7KHIODVKRIOLJKWZKLFKJLYHVD SOHDVDQW VHQVDWLRQ WR DOO +HOLRSHV FRPHV IURP D JLIW OHIW IRUWKHPE\WKHJRGV
%7+(.,'1$33,1*2)0$//,*,**
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
&6$6(52%276$77$&.
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
FDQ EXUQ GRZQ WKH S\UDPLG H[SRVLQJ LW ,I EDWWOH ZLWK WKH +HOLRSHVLVWRRGLIILFXOWWKHURERWVFDQEHXVHGWRVFDUHWKHP DZD\7KHURERWVVKRXOGQRWFRQFHQWUDWHWKHLUILUHRQWKH3&V RU WKHLU SRVVHVVLRQV WKH\ DUH EHLQJ XVHG IRU PD[LPXP GHVWUXFWLRQRIWKHDUHDDQGQRWDJDLQVWLQGLYLGXDOV
*$00$6XEVHFWLRQ
3ODQQHG (QFRXQWHUV
)$0,/<+876
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
*$5'(13/276
%HIRUH \RX LV DQ DUHD RI JUHHQ JURZWK 9DULRXV W\SHV RI SODQWV JURZ LQ UHJXODU URZV 7KH DUHDV DUH EURNHQ E\ RFFDVLRQDOURZVRIWDOOSODQWVPKLJKDQGDVZLGHDVWKH SORW +HOLRSHV 67$5636SLQFHUV,05:0 'XULQJ WKH GD\ WKH JDUGHQV DUH WHQGHG E\ IDPLOLHV ZKR OLYH QHDUE\ $OO +HOLRSH FKLOGUHQ DUH FXULRXV DQG IULHQGO\ DQG VKRZQRIHDURIWKH3&V
'23((3(1
%HIRUH \RX LV D VTXDUH FRUUDO PDGH RI ZRRGHQ SROHV DQG SRVWV :LWKLQ WKH FRUUDO DUH ODUJH VORZ PRYLQJ FUHDWXUHV WKDW UHVHPEOH UDEELWV 3LOHV RI JUHHQ SODQWV DUH VFDWWHUHG DERXWWKHFRUUDODQGWKHFUHDWXUHVDUHHDWLQJWKHP +HOLRSH)HPDOHV 67$5636SLQFHUV,05:0 'RSHHV 09VORZ,05667$$77'06$6' 7KH +HOLRSHV DUH OHDUQLQJ WR UDLVH DQLPDOV IRU IRRG &RQWDLQHG LQ WKHVH SHQV DUH GRSHHV XVXDOO\ WHQGHG E\ WKH YLOODJH ZRPHQ 7KH GRSHHV DUH FRPPRQO\ RZQHG DQG WKH PHDWLVGLYLGHGDIWHUDVODXJKWHU
%$&+(/25+876
+HOLRSHV 67$5636SLQFHUV,05:0 :KHQ DWWDLQLQJ DGXOWKRRG PDOHV RI DQ\ IDPLO\ JR WR WKHVH EDFKHORU KXWV 7KH\ OLYH LQ WKHP XQWLO WKH\ PDUU\DQGPRYH LQWR WKHLU RZQ KXWV 7KH KXWV DUH URXQG LQ VKDSH DQG DERXW PLQGLDPHWHU7KHLQWHULRUVDUHFRPSOHWHO\RSHQDQGRQO\ PRYDEOHVFUHHQVPDUNRIIVSDFHVZLWKLQZKHUHWKHRFFXSDQWV NHHSWKHLU SHUVRQDOSRVVHVVLRQV7KHYLOODJHIDPLOLHVSURYLGH IRRGHDFKGD\
6/$9(+87
+HOLRSH6ODYHV 67$5636SLQFHUV,05:0 :LWKLQ WKLV ODUJH FLUFXODU KXW DUH NHSW HOHYHQ QRPDGV FDSWXUHGLQEDWWOHE\WKHYLOODJHUV7KH\DUHDEUXWDOL]HGDQG GLVSLULWHG ORW DV WKH\ DUH RYHUZRUNHG DQG RFFDVLRQDOO\ PDGH VSRUW RI 0RVW EHDU VFDUV IURP EDWWOH RU FUXHO WUHDWPHQW 6RPH PD\ KDYH ORVW D OHJ ,I WKH YLOODJH +HOLRSHV GLVFRYHU DQ\3&WU\LQJWRKHOSDVODYHRUDVNLWVDLGWKH\ZLOOWU\WRNLOO WKH3&RUPDNHKLPKHUDVODYHWRR
7KLVKXWLVWKHVDPHDV &XNNDU 67$5636SLQFHUV,05:0 :HDSRQVWDQJOHUJUHQDGHV
(037<+87
7KLV KXW ZLOO EH WXUQHG RYHU WR WKH SOD\HUV LI WKH\ GR QRW PDNHHQHPLHVRIWKH+HOLRSHV6HYHUDORIWKHYLOODJHIHPDOHV ZLOO FRPH WR EXLOG D FRRNLQJ ILUH OD\ GRZQ UXJV FORWKV DQG HDWLQJXWHQVLOVIRUWKH3&V8QOHVVWKH3&VVSHDN+HOLRSHWKH IHPDOHVZLOOQRWXQGHUVWDQGWKHP+RZHYHUWKH\ZLOOJHWWKH LGHDLI3&VZDQWWKHPWROHDYH
%2$76
$ORQJWKHULYHUEDQNDUHGXJRXWFDQRHVPORQJKHZQ IURPWKHWUXQNVRIVLQJOHWUHHVWKHQFDUYHGDQGSROLVKHG 1RQH DUH RYHU P ZLGH 7KH DIW SRUWLRQV DUH IODWWHU DQG ZLGHU WKDQ WKH ERZ SRUWLRQV )URP WKH ERZV MXW VPDOO SODWIRUPVHTXLSSHGZLWKVHYHUDOOHDWKHUVWUDSV7KHUHDUH RSHQLQJV LQ WKH ERWWRPV RI WKH SODWIRUPV UHDFKDEOH E\ VRPHRQHVLWWLQJLQWKHERZ,QWKHERZRIHDFKERDWLVD EDUUHO RI SXUSOH OLTXLG ZLWK D GULS VSRXW LQ WKH ERWWRP (DFK ERDW FDUULHV VL[ SDGGOHV DOO RI WKHP LQWULFDWHO\ FDUYHGDQGVRPHDUHZUDSSHGLQRLOHGOHDWKHU
:(//6
$ VPDOO RSHQ SLW LQ WKH JURXQG LV VKDGHG E\ IROLDJH 7KH JURXQG DURXQG WKH HGJH LV KDUG DQG GXVW\ DQG VKRZV IRRWSULQWV2QHPHWHUEHORZWKHHGJHLVDSRRORIZDWHU 7KHVHDUHFUXGHO\GXJZHOOVWKDWDUHRSHQDQGIUHHIRUXVHE\ DQ\RQH 7KH\ DUH QRW YHU\ GHHS EXW WKH ZDWHU LV VDIH WR GULQN 1R GHYLFH IRU GUDZLQJ WKH ZDWHU LV SURYLGHG DV LWV VXUIDFH LV QRUPDOO\ ZLWKLQ P 7KH +HOLRSHV XVH URSHV WLHG WRJRXUGVWRGUDZWKHZDWHUXS
52.$.$5 6+87
7KHKXWLVODUJHDQGVSDFLRXV,WPHDVXUHVPZLGHE\ PORQJ7KHUHLVDVPDOOURRPDWLWVQRUWKHQGWKDWPHDVXUHV PZLGHDQGPORQJ9HU\KHDY\FDUYHGZDOOVSDUWLWLRQ WKHURRP7KHUHPDLQGHURIWKHKXWLVGHYRWHGWRWKHUHVWRI 5RNDNDU VIDPLO\
),6+,1*+876
)LVKHUV DUH WKH FUDIW H[SHUWV RI WKH YLOODJH DV ILVKLQJ LQ WKH ULYHU LV GDQJHURXV $OO KRPHV RI WKH ILVKHUV DUH RUQDWH DQG ZHOO FRQVWUXFWHG 2WKHUZLVH WKH KXWV DUH VLPLODU WR RWKHU IDPLO\ KXWV LQ GHVLJQ FRQVWUXFWLRQ VL]H DQG OD\RXW +DUSRRQV DQG VPDOO EDUUHOV RI SXUSOH OLTXLG WKDW ZLOO NHHS JDVSVIURPDWWDFNLQJWKHFUXGHERDWVDUHLQWKHKXWV
/(.((.+ 6+87
7KLV LV D FLUFXODU VLQJOHIDPLO\ GZHOOLQJ ,W FRQWDLQV D VPDOO SULYDWH URRP IRU OHNHHNK DQG D ODUJH FRPPRQ URRP IRU WKH RWKHUV /HNHHNK 67$5636SLQFHUV,05:0 :HDSRQVDXWRPDWLFSLVWROFOLSV
&8..$5 6+87
7KHVH DUH WKH ERDWV PDGH E\ WKH +HOLRSH ILVKHU IDPLOLHV 7KH\DUHFUXGHFOXPV\DQGGLIILFXOWWRKDQGOHDQGFRQWURO,I DQ\RQH ZLWK D GH[WHULW\ EHORZ LV LQ WKH ERDW WKHQ WKH FKDQFHRIFDSVL]LQJLVSHUVTXDUHWUDYHOHG3&VKDYLQJD GH[WHULW\RIRUKLJKHUZLOOQRWKDYHWRUROOXQOHVVWKHUHLV VRPHRQHLQWKHERDWZLWKDGH[WHULW\RIOHVVWKDQ 7KHSXUSOHOLTXLGLQWKHEDUUHOVLVJDVSUHSHOOHQWWKDWLVVORZO\ GULSSHG LQWR WKH ZDWHU WKURXJK WKH RSHQLQJ LQ WKH ERZ SODWIRUP7KH+HOLRSHVZLOOQRWWHOOWKH3&VDERXWWKHOLTXLGDV WKLVLVDFUDIWVHFUHW
$77$&.2)7+(*$636
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
:22'(1%5,'*(
&+$.$ 6+87
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
%2$7'2&.
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
:22'(1:$/.:$<
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
),5(72:(5
%HIRUH \RX LV D URXQG SODWIRUP P DERYH WKH VXUIDFH RI WKHZDWHU7KHSODWIRUPLVPLQGLDPHWHUDQGVHUYHVDV WKH URRI RI D F\OLQGHU P KLJK 7KHUH DUH QR YLVLEOH RSHQLQJVLQWKHF\OLQGHU%HORZWKHF\OLQGHUDUHWKHSLOLQJV WKDWVXSSRUWWKHILUHWRZHU7KHUHLVDOLJKWEDOXVWUDGHP KLJKDURXQGWKHHGJHRIWKHSODWIRUP
7ZR VPDOO LQWULFDWHO\ FDUYHG KLQJHG GRRUV LQ WKH EDOXVWUDGH DUH ORFDWHG ZKHUH WKH ZDONZD\V PHHW WKH SODWIRUP $ ODUJH EDUUHO VWDQGV RQ WKH VKRUH VLGH RI WKH ZDONZD\ $ PDVVLYH ZRRGHQ SHGHVWDO P WDOO ULVHV IURP WKHFHQWHURIWKHSODWIRUPDQGDKXJHFOD\ERZOVLWVDWRS LW )LUH LV EXUQLQJ LQ WKH ERZO DQG WKH VPRNH VPHOOV OLNH JUHDV\ILVK
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
35,(676 +87
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
*RNXODQG2NDOOD 67$5636SLQFHUV,05:0 :HDSRQVSURMHFWLOHFOLSLQHUWLDVFUHHQ 6QLNNHU 09PHGLXP,05667$$77 '0ELWH6$DFLGLFSRLVRQ6'QRQH
DQRWKHU EXLOGLQJ $Q\RQH ILJKWLQJ LQVLGH WKLV KXW KDV KDUGFRYHU
.8.8 6+87
.XNX 67$5636SLQFHUV,05:0 :HDSRQVSURMHFWLOHFOLSDOEHGRVFUHHQ .XNX VKXWLVUHFWDQJXODU[PPKLJKDQGLVEXLOWRQ WRS RI ,W LV ILOOHG ZLWK &OLNN UHOLFV WKDW ORRN OLNH ELWV DQG SLHFHV WKDW KDYH EURNHQ RU IDOOHQ RII RWKHU UHOLFV $OO RI WKH SLHFHV DUH DUUDQJHG QHDWO\ DOWKRXJK ZLWKRXW DQ\ DSSDUHQW RUGHU 7KH SULHVW .XNX OLYHV KHUH +H DQG WKH SULHVW (GDNX IURPWKHKXWEHORZWDNHFDUHRIWKHFRRNLQJKRXVHZRUNDQG ULWXDO SDLQWLQJ IRU WKH RWKHU SULHVWV )RRG DQG XVHIXO HTXLSPHQWIRUUHOLJLRXVIXQFWLRQVDQGHYHU\GD\OLIHDUHVWRUHG KHUH 7KHUH DUH WZR WUDSGRRUV $ ODGGHU OHDGV WR RQH LQ WKH FHL OLQJ WKDW JRHV WR .LOORN V WRZHU 7KH RWKHU LV LQ WKH IORRU DQG OHDGV WRWKH SULHVWV KXW 7KH WUDSGRRU LQ WKH IORRUPD\EHEDUUHGZLWKDKHDY\ZRRGHQEDU$OOFKDUDFWHUV ILJKWLQJLQVLGHKDYHKDUGFRYHU
'LDPHWHUP+HLJKWP
72:(5522)
7KLVLVWKHURRIWR,WLVPDERYHWKHZDWHU$PKLJK EDOXVWUDGHUXQVDORQJLWVHGJHDQGKDVDVPDOOKLQJHGGRRU OHDGLQJWRDZRRGHQZDONZD\WKDWDQJOHVXSWRDQRWKHUWRZHU IXUWKHURXWLQWRWKHULYHU
:$/.:$<
$ ZRRGHQ ZDONZD\ OHDGV VRXWK IURP WKH WRZHU URRI WR WKH HQWUDQFH WR WKH ODVW DQG KLJKHVW WRZHU 7KH ZDONZD\ JUDGXDOO\ VORSHV IURP WR P DERYH WKH ZDWHU KDV QR UDLOLQJ DQG LV P ZLGH DQG P ORQJ $W WKH HQG RI WKH ZDONZD\LVDGRRUWRWKHKLJKHVWWRZHU 7KHZDONZD\OHDGVIURP WR
$.+$1 672:(5
.,//2. 672:(5
.LOORN 67$5636SLQFHUV,05:0 :HDSRQVSURMHFWLOHFOLSDOEHGRVFUHHQ 7KLV LV D FLUFXODU URRP EXLOW LQ WKH FHQWHU RI WKH URRI RI EXLOGLQJ 7KH URRP LV P KLJK DQG P LQ GLDPHWHU $ WUDSGRRU LQ WKH IORRU OHDGV LQWR .XNX V KXW EHORZ $ WUDSGRRU LQ WKH FHLOLQJ OHDGV WR WKH URRI 7KH URRP LV ILOOHG ZLWK WKH XVXDO &OLNN UHOLFV &KDUDFWHUV LQVLGH WKH WRZHU ZLOOILJKWDVLILQKDUGFRYHU.LOORNOLYHVKHUHDQGZLOOEHKHUH DOOWKHWLPHH[FHSWZKHQKHDWWHQGVWKHULYHUFHUHPRQ\
$NKDQ 67$5636SLQFHUV,05:0 :HDSRQVQXFOHDUSLVWROVHH$NKDQ´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
$IWHU WKH NLGQDSSLQJ VHH 5HTXLUHG (QFRXQWHU % 0DOOLJLJJ ZLOOEHWLHGXSDQGKLGGHQLQWKLVKXW ,Q D VPDOO FKHVW LQ WKH FRUQHU LV D EODFN DQG UHG WXEH WKDW GHDFWLYDWHVWKHWDQN VGHIHQVHILHOGDQGRSHQVLWVUHDUKDWFK
3<5$0,'3/$7)250
7KLV KHDY\ ZRRGHQ SODWIRUP H[WHQGV DFURVV WKH VRXWKHUQ HQG RI WKH S\UDPLG V VXPPLW 6WHSV FRPLQJ XS IURP WKH WHPSOHOHDGKHUH7KHSODWIRUPLVVFDWWHUHGZLWKLWHPVVXFK DVFORWKEHDGVEDVNHWVDQGFDUYHGZRRGHQVFUHHQV7KH SODWIRUPLVO2[PDQGKDVQRUDLOLQJ$VPDOOPZLGH VWDLUZD\OHDGVWRWKHVPDOOHUSODWIRUPDWWKHQRUWKHUQHQG RIWKHVXPPLW
$/7$5:(//
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
7(03/(2)7+(6.<
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
67$,5672+($9(1
7KLV LV D P ZLGH ZRRGHQ VWDLUZD\ WKDW OHDGV WR WKH ILUVW SODWIRUP RI WKH S\UDPLG ,W KDV QR UDLOLQJ DQG LV RUQDWHO\ FDUYHGHYHU\IRRWRIWKHZD\,WVWRWDOOHQJWKLVP
3<5$0,'2)7+(*2'6
7KHPDVVLYHZRRGHQVWHSSHGS\UDPLGLVPKLJKDWLWV KLJKHVW SRLQW 7KH FDUYHG ZRRGHQ VWHSV IURP WKH WHPSOH OHDG WR WKH S\UDPLG V WRS $W WKH WRS DUH WZR SODWIRUPV 7KHODUJHUSODWIRUPLVVRXWKRIDQGPEHORZWKHVPDOOHU $VKRUWVHWRIVWHSVOHDGWRWKHVPDOOHUSODWIRUPWKDWKDVD URRI 7KH HQWLUH S\UDPLG LV LQWULFDWHO\ FDUYHG /DUJH EHDXWLIXOO\ FDUYHG VFUHHQVFRORUIXO FORWK VWULQJV RI FU\VWDO DQGVKHOOEHDGVDUHVWUHZQRYHULWVVXUIDFH 7KLVLVWKHKROLHVWSODFHRIWKH+HOLRSHV7KHEHDGVHWFRYHU LWVVXUIDFHDUHJLIWVIURPWKH+HOLRSHV
'HOWD6XEVHFWLRQ
*HQHUDO1RWHV
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
'(/7$6HFWLRQ
SRVLWLRQ DQG RQH VXFFHVVIXO FKDUDFWHU FDQ VKRZ DQRWKHU WKH PHWKRGRIRSHUDWLRQ
7KH ZDU WDQN KDV IXOO UDGLR FRPPXQLFDWLRQ FDSDFLW\ DQG DQ\ FKDUDFWHUVLWWLQJLQDIXQFWLRQLQJSRVLWLRQFDQWDONWRDQ\RWKHU FKDUDFWHU LQ WKH WDQN LQFOXGLQJ WKH WXUUHWV :KHWKHU UDGLR FRPPXQLFDWLRQRXWVLGHWKHYHKLFOHLVSRVVLEOHZLOOEHOHIWXSWR \RXWRGHFLGHGHSHQGLQJRQWKHFLUFXPVWDQFHVRI\RXUJDPH 7KH WDQN KXOO KDV VWUXFWXUDO SRLQWV DQG DQ LQHUWLD VKLHOG +DQG ZHDSRQV ZLOO QRW EH DEOH WR GDPDJH LW 7KH YDU\LQJ GDPDJH UDWHV DQG WRWDOV DUH OLVWHG LQ 7DEOH RQ S $ GDPDJH WRWDO RI SRLQWV RU PRUH WDNHQ LQ D VLQJOH URXQG IURP RQH ZHDSRQ KDV D FKDQFH RI SHQHWUDWLQJ WKH LQWHULRU RI WKHWDQN,IWKLVRFFXUVVHHWKH:DU7DQN+LW/RFDWLRQ7DEOHRQ SIRUPHWKRGRIKDQGOLQJ,IWKHWDQNWDNHVKXOOGDPDJHRU DVKRWFDXVHVGDPDJHWRWKHLQWHULRUWKHQWKHGDPDJHFDQEH UHFRUGHGRQWKH7DQN+LW/RFDWLRQ&KDUWRQS 7KH WDQN LV SURYLGHG ZLWK D VSHFLDO VHFXULW\ GHYLFH WR NHHS LW RXW RI HQHP\ KDQGV 2QFH WKH WDQN LV XQGHU SRZHU WKH FRGH PXVWEHHQWHUHGGDLO\IURPWKHFDSWDLQ VSRVLWLRQRWKHUZLVHD VHOIGHVWUXFW VHTXHQFH LV DFWLYDWHG 7KH FRGH KDV EHHQ SHUPDQHQWO\ORVWDQGWKHGHYLFHFDQQRWEHE\SDVVHG7KHWLPH UHTXLUHG IRU VHOIGHVWUXFW LV XS WR \RX DV WKH OHQJWK RI SOD\WLPHZLOOYDU\IURPJDPHWRJDPH,WLVUHFRPPHQGHGWKDW LI FKDUDFWHUV WDNH H[FHVVLYH DPRXQWV RI WLPH DQ H[WHQGHG VHTXHQFH VKRXOG EH DOORZHG ,Q QR FDVH VKRXOG WKH VHTXHQFH EHDOORZHGWRH[WHQGSDVWDZHHNLQWLPHRQWKHSODQHWDVWKH 6DWKDU HYDFXDWLRQ VKLS LV GXH ,W PD\ EH QHFHVVDU\ WR LQIRUP WKH FKDUDFWHUV WKDW WKH GHVWUXFW VHTXHQFH LV DFWLYDWHG DQG OHW WKHPVZHDWRXWWKHWLPHWKH\KDYHOHIWWRXVHWKHZDUWDQN :KHQ FRXQWGRZQ IRU VHOIGHVWUXFW EHJLQV LQWHULRU OLJKWV ZLOO IODVKIURPUHGWR\HOORZDQGDNOD[RQZLOOVRXQGHYHU\VHFRQG 3&VVKRXOGPDNHORJLFUROOVWRVHHLIWKH\XQGHUVWDQGZKDWWKH QRLVHDQGOLJKWVPHDQ7KHVHOIGHVWUXFWFDQQRWEHVWRSSHGE\ DQ\RQH ZLWKRXW WKH VHFXULW\ FRGH DQG WKLV FRGH QR ORQJHU H[LVWV2QFHWKHPDLQVHTXHQFHWLPHKDVH[SLUHGGD\V WKHQ WKH IODVK ZDUQLQJ VHTXHQFH ZLOO ODVW PLQXWHV 7KH ZDU WDQN ZLOO VKXW GRZQ DQG VHWWOH WR WKH JURXQG DOO ZHDSRQV DQG SRZHU V\VWHPV GHDG KDWFK RSHQ DQG OLJKWVNOD[RQ JHWWLQJ EULJKWHU DQG VKULOOHU $Q\RQH UHPDLQLQJ LQ WKH ZDU WDQN SDVW WKH PLQXWH WLPH SHULRG ZLOO GLH LQ WKH VPDOO QXFOHDU H[SORVLRQ$OOFKDUDFWHUVZLWKLQRQHKDOINPUDGLXVWDNHG RI VKRFN DQG UDGLDWLRQ GDPDJH $OEHGR VFUHHQV DQG VXLWV ZLOO QRWVWRSWKHUDGLDWLRQHIIHFWVDQGIXOOGDPDJHZLOORFFXU+DUG FRYHUZLOOUHGXFHGDPDJHE\RQHKDOI ,QVLGHWKHWDQNLVDPLVVLOHWKDWZLOOKDOWDOOHOHFWURQLFIXQFWLRQV IRUDUDGLXVRINPDURXQGWKHDUHDRILPSDFW,IWKHPLVVLOH LVLPSURSHUO\ILUHGDQGODQGVZLWKLQUDQJHRIWKHWDQNWKHWDQN ZLOO VKXW GRZQ ,I WKH WDQN VKXWV GRZQ DQG FDQQRW EH VXFFHVVIXOO\ UHDFWLYDWHG IURP WKH EULGJH WKLV WRR ZLOO LQLWLDWH WKHVHOIGHVWUXFWPHFKDQLVP
'HOWD6XEVHFWLRQ
5HTXLUHG (QFRXQWHUV
$6$7+$56$6($77$&.
$IWHU 3&V DUH IDPLOLDU ZLWK WKH WDQN DQG EHJLQ WR PRYH DURXQGWKHYLOODJHZLWKLWWKH6$6(VKRXOGDWWDFNWKHP 6$6( 09NSK,067$$77'0E\ZHDSRQ 6HHDOVR7DEOH
%HIRUH\RXH[WHQGVDORQJPHWDOWXQQHOWRWKHVRXWK,WLV PKLJKDQGPZLGH7KHOLJKWLVVRIWDQGLQGLUHFW7KHUH LV DQ RSHQLQJ P DKHDG RQ WKH ULJKW DQG RQH GLUHFWO\ DERYH LW LQ WKH FHLOLQJ 7KLUWHHQ PHWHUV DKHDG WKH WXQQHO WXUQVWRWKHULJKW 7KLV LV DQ DFFHVV WXQQHO LQWR WKH WDQN 7KH RSHQLQJ RQ WKH ULJKW LV D UHSDLU QLFKH IRU VRPH VHDOHG HTXLSPHQW 2QH SHUVRQPD\VWDQGFRPIRUWDEO\LQWKHQLFKH7KHFHLOLQJVKDIW LVDF\OLQGULFDOKDWFKZD\ZLWKODGGHUOHDGLQJXSIRUDERXWP WRWKHSRZHUURRP
E$&&(667811(/
/DUJH FRQWURO SDQHOV DQG K\GUDXOLF PDFKLQHU\ IODQN WKH VLGHV RI WKLV WXQQHO 7KH WXQQHO H[WHQGV IRU DQRWKHU P $ERXWPSDVWWKHWXUQWKHUHLVDVKDIWLQWKHFHLOLQJ
%7+(:$57$1.
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
'HOWD6XEVHFWLRQ
3ODQQHG (QFRXQWHUV
$&&(66+$7&+
D$&&(667811(/
7KHVKDIWLVF\OLQGULFDOKDWFKZD\ZLWKDODGGHUOHDGLQJXSIRU DERXWPWRWKHEULGJH 7KLVLVDQDFFHVVWXQQHOWRWKH LQWHULRURIWKHWDQN,WFRQWDLQVSURWHFWLYHSDQHOVEHKLQGWKDW DUH PDVVLYH FDEOH DQG FRQWURO HTXLSPHQW 6RPH HTXLSPHQW ZLOOEHIDPLOLDUVRPHXQIDPLOLDU
%5,'*(
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
UROOLQLWLDWLYHWRXQGHUVWDQGKRZWRRSHUDWHWKHSRVLWLRQV 2QH VXFFHVVIXO UROO LV HIIHFWLYH IRU DOO SRVLWLRQV 0DQXDO RSHUDWLRQRIWKHWXUUHWVZLOOKRZHYHUUHTXLUHDVHSDUDWH UROO 7KLV DSSOLHV WR DOO LQWHULRU ZHDSRQV DQG FRQWURO SRVLWLRQV$Q\FKDUDFWHUZLWKFRPSXWHUVNLOOVPD\DGGWKLV VNLOO QXPEHU WR WKHLU FKDQFH RI XQGHUVWDQGLQJ D SRVLWLRQ DQG WR WKHLU DWWDFN VFRUHV ZKHQ UROOLQJ WR KLW XVLQJ WKDW ZHDSRQ
&20%$7&(17(5
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
32:(55220
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
0,66,/(/$81&+5220
7KLV URRP PHDVXUHV [ P ,Q LWV FHQWHU LV D EULJKW \HOORZ URFNHW ZLWK VLOYHU QRVH DQG JXLGDQFH ILQV 7KH URFNHW UHVWV RQ D ODXQFK UDLO 7KHUH DUH QXPHURXV PRQLWRULQJSDQHOVDURXQGWKHURRPEXWRQO\RQHFRQWURO SDQHO2QWKLVSDQHODUHDODUJHGLDODQGDEULJKW\HOORZ EXWWRQ 7KH GLDO KDV ILYH SRVLWLRQV DQG WKH SRLQWHU RQ WKHGLDOSRLQWVWRWKHILUVWSRVLWLRQ
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
7855(7
,QVLGHLVDVLQJOHSDGGHGURXQGVHDWLQIURQWRIDVPDOO FRQWURO SDQHO 7KH ZDOOV DUH FORVH DQG SDFNHG ZLWK PDFKLQHU\
(SVLORQ6XEVHFWLRQ
*HQHUDO1RWHV
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
(36,/216HFWLRQ
7KH 6$6( DQG 6$6, URERWV DUH SURJUDPPHG WR VHOI GHVWUXFW RQ WKH YHUEDO FRPPDQG RI DQ\ 6DWKDU 7KH SURJUDPPLQJ FDQQRW EH DOWHUHG RU UHPRYHG ZLWKRXW GHVWUR\LQJWKHURERW
(SVLORQ6XEVHFWLRQ
5DQGRP (QFRXQWHUV
5ROOIRUDUDQGRPHQFRXQWHUHDFKGD\DQGQLJKW8VHWKH%LR FRQVWUXFW3ODQWDQG$QLPDO7DEOHVRQSDQGWKH6WDUPLVW &UHDWXUH7DEOH
(SVLORQ6XEVHFWLRQ
5HTXLUHG (QFRXQWHUV
$+2/2*5$02)%/8))$1'321'
%HIRUH \RX LV D SHDFHIXO VFHQH RI D JUHHQ EOXII VFDWWHUHG WUHHVDQGDTXLHWSRQG8WWHUVWLOOQHVVSUHYDLOV ,I WKH 3&V JR RQ IRRW WKH\ PD\ VQHDN SDVW WKH EXQNHU ZHDSRQV,IWKH\XVHDYHKLFOHWKH\ZLOOEHILUHGXSRQRXWRI WKH IRXU PDLQ WXUUHWV DV VRRQ DV WKH\ FRPH LQ UDQJH RI D ZHDSRQ 7KH KRORVFUHHQ FDQ EH GHVWUR\HG ,I 3&V FKRRVH WR ILJKWEDFNXVH7DEOHIRUKLWORFDWLRQV $Q\RQH ZKR HQWHUV WKH KRORVFUHHQ DUHD ZLOO KDYH GLVWRUWHG YLVLRQOLPLWHGWRP$OOZHDSRQILUHRXWVLGHWKHPUDQJHLV DWWRDWWDFNQXPEHUGXULQJWKHGD\RQO\
(SVLORQ6XEVHFWLRQ
3ODQQHG (QFRXQWHUV
321'
%HIRUH \RX VWUHWFKHV D ODUJH VWLOO SRQG 7KH VKRUH LV OLQHG ZLWK KHDY\ UHHGV DQG IORWVDP $OWKRXJK WKHUH LV QR ZLQG DV \RX ZDWFK D ULSSOH DSSHDUV LQ WKH SRQG V FHQWHU DQG \RX KHDU D 3ORRS DV LI VRPHWKLQJ KDV PRYHGLQWKHZDWHU$OORIDVXGGHQDKXJHVOLWKHUZLWK SODQWOLNH JURZWKV RQ LWV EDFN HPHUJHV IURP WKH ZDWHU DQGUXVKHVWRZDUG\RX
6OLWKHU
09VORZ,05667$$77'0 6$FDPRXIODJH6'QRQH
&XGGD
09YHU\IDVW,05667$$77'0 6$IHHGLQJIUHQ]\6'QRQH
7KH GRRU WR WKH ZHVW LV PDUNHG ZLWK XQUHDGDEOH 6DWKDU V\PEROV IRU SRZHU DQG UDGLDWLRQ GDQJHU 7KLV GRRU LV ORFNHG,WKDVVWUXFWXUDOSRLQWVRIYDOXH
(48,30(175220
7KLV [ P URRP LV HPSW\ 7KHUH LV D GRRU LQ WKH ZHVWZDOODQGRQHLQWKHHDVWZDOO$GLPJORZIURPWKH ZDOOVPDNHVWKHURRPYLVLEOH
7KLVSRQGLVPGHHSDORQJWKHVKRUHDQGPGHHSLQLWV FHQWHU 7KH VOLWKHU ZLOO DWWDFN DQ\RQH ZLWKLQ VLJKW RI WKH SRQG DQG WKH FXGGD ZLOO DWWDFN DQ\RQH HQWHULQJ WKH ZDWHU 7KH 6OLWKHU ZLOO DWWDFN WKH QHDUHVW FKDUDFWHU EXW ZLOO QRW IROORZ DQ\RQH LQWR WKH EXLOGLQJV ,I DYRLGHG LW ZLOO VWDON DURXQG WKH WUDLQLQJ EDVH FRPSRXQG IRU VHYHUDO KRXUV EHIRUHUHWXUQLQJWRWKHSRQG,WZLOODWWDFN3&VRQVLJKW
6PDOO HTXLSPHQW DQG URERWV IRU WKH SRZHU UHDFWRU ZHUH NHSWKHUHDQGWKHURRPLVVKLHOGHGSUHYHQWLQJDQ\UDGLR WUDQVPLVVLRQV 7KH ZHVWHUQ GRRU LV ORFNHG DQG KDV VWUXFWXUDOSRLQWV 7KH URERW GHWDLOHG LQ LV RXWVLGH WKH PLGGOH VRXWKHUQ GRRUWRWKLVEXLOGLQJ,IKHVHHVWKH3&VKHZLOODWWDFN
&20%$7$5(1$*<01$6,80
32:(55220
7KLV EXLOGLQJ LV P ORQJ DQG P ZLGH 7KH LQWHULRU FRQVLVWVRIRQHODUJHURRPZLWKDGLUWIORRU+ROHVLQWKH IORRUVKRZZKHUHREMHFWVZHUHRQFHORFDWHG7KHUHLVD ODUJH TXDQWLW\ RI SDFNLQJ PDWHULDO VXFK DV EURNHQ SLHFHVRISODVWLFRQWKHIORRU,QWKHQRUWKHDVWFRUQHULV DUDLVHGZRRGHQIORRUWKDWLVJRXJHGDQGVFUDWFKHG $W RQH WLPH WKLV FRPEDW DUHQD FRQWDLQHG WUDLQLQJ PDFKLQHVDQGDWKOHWLFHTXLSPHQW
6725$*('20(
7KLVLVDODUJHJHRGHVLFGRPHZLWKDVLQJOHGRRULQRQH VLGH 7KH RSDTXH ZDOOV DUH PDGH RI D KHDY\GXW\ SODVWLF7KHUHDUHQRZLQGRZVRUYLVLEOHOLJKWV $OO WKHVH GRPHV DUH HPSW\ DQG QRQH KDYH DQ\ SRZHU RU OLJKWVRXUFHV
,17(//,*(1&(&(17(5
7KLV URRP PHDVXUHV [ P 7KH QRUWK DQG VRXWK ZDOOV DUH VOLJKWO\ FXUYHG 7KHUH LV D GLP JORZ IURP WKH ZDOOV 7KH LQWHULRU VKRZV HYLGHQFH WKDW PDVVLYH PDFKLQHV ZHUH RQFH PRXQWHG KHUH DQG WKH EXLOGLQJ VWUXFWXUH ZDV GDPDJHG ZKHQ WKHVH PDFKLQHV ZHUH UHPRYHG0DVVLYHFODPSVDQGFRQQHFWHUVOLWWHUWKHIORRU DORQJ ZLWK SDFNLQJ PDWHULDO DQG ZLUH WLHV 7KHUH DUH GRRUV ZLWK FRORUIXO DOLHQ V\PEROV RQ WKHP LQ WKH ZHVWHUQDQGVRXWKHUQ ZDOOV7KH VRXWKHUQGRRULVRSHQ UHYHDOLQJ D VPDOO HPSW\ DQWHURRP ZLWK WKUHH GRRUV LQ LWVVRXWKHUQZDOO 7KLV URRP FRQWDLQHG ODUJH FRPSXWHU GDWD ILOHV XVHG IRU UHVHDUFKLQSUHSDULQJIDNHLGHQWLWLHVDQGFRXQWHUIHLWFUHGLW FDUGVDQGIRUFRRUGLQDWLQJRWKHULQWHOOLJHQFHDQGVDERWDJH DFWLYLWLHV$OORIWKLVPDWHULDOKDVEHHQUHPRYHGEXWVRPH RIWKHOLWWHURQWKHIORRUPLJKWJLYHFOXHVWR3&V 7KHSRZHULVRQDQGVPDOOHPHUJHQF\OLJKWVFDQEHXVHG 7KH VRXWKHUQ GRRUV OHDG WR EXLOGLQJV DQG DQG WKH RXWGRRUV ZKHUH D URERW ZDLWV 7KH ZHVWHUQ GRRUOHDGV WR EXLOGLQJ
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
75$,1((6 /,9,1*48$57(56
5RZV RI EXQNV OLQH ERWK VLGHV RI WKLV [ P URRP 0RVW KDYH FUXPSOHG DQG VWDLQHG PDWWUHVVHV (PSW\ FRQWDLQHUVVSLOOHGOLTXLGVDQGSDSHUVOLWWHUWKHURRP$ IHZ RSHQ IRRWORFNHUV DUH DW WKH HQGV RI EXQNV DQG VHYHUDO DUH VWDFNHG LQ FRUQHUV 2WKHUZLVH WKH URRP LV HPSW\7KHOLJKWVDUHRIIEXWDJORZHPDQDWHVIURPWKH ZDOOV 7KH QRUWK DQG VRXWK ZDOOV DUH VOLJKWO\ FXUYHG 'RRUVDUHLQWKHQRUWKDQGVRXWKZDOOV 7UDJJHU
67$5636,05:0 :HDSRQVODVHUSLVWROZULVWSLVWRO
6$6(
09NPK,067$$77'0E\ZHDSRQ
7UDJJHU V ZULVW SLVWRO ILUHV RQH VKRW DW VKRUW UDQJH 8VH WKH VWDWLVWLFV IRU DXWRSLVWRO ZLWK WKH IROORZLQJ FKDQJHV UDQJH VKRUW UDWH GDPDJH GRXEOH QRUPDO DPPR 7KH SLVWRO XVHV VWDQGDUG VKHOOV EXW ORRNV OLNH D ZULVWZDWFKLWFDQWHOOWLPH
7KH DJHQWV KXPDQ DQG RWKHUZLVH EHLQJ WUDLQHG DW WKH EDVH ZHUH TXDUWHUHG KHUH 7KH SRZHU WR WKLV EXLOGLQJ LV VWLOO RQ 7KH JORZ LV HPHUJHQF\ OLJKWLQJ 7UDJJHU RQH RI WKH6DWKDU VKXPDQDJHQWVLVKLGLQJKHUHEHKLQGDVWDFN RIIRRWORFNHUVDQGZLOODPEXVKWKHILUVWFKDUDFWHUWRHQWHU WKH EXLOGLQJ ,I KH LV ZRXQGHG VHH WKH GHVFULSWLRQ RQ S IRU KLV IXUWKHU EHKDYLRU 7KH URERW GHWDLOHG LQ LV EHWZHHQWKLVEXLOGLQJDQGEXLOGLQJ$Q\RQHHQWHULQJWKH VSDFHEHWZHHQWKHPRUOHDYLQJE\WKHVRXWKHUQGRRUDQG KHDGLQJHDVWZLOOEHVHHQ
&/$665220
7KHWXELVDEDWKWXEDQGWKHZDWHUVXSSO\LVVWLOOZRUNLQJ 1RQH RI WKH GRRUV DUH ORFNHG 7KH H[LW GRRU WR WKH QRUWK OHDGVRQWRDSRUFKWKDWUXQVZHVWIRUPDQGLVFRYHUHG EXW RSHQ WR WKH VLGHV 7KH EXLOGLQJ LV P LQ GLDPHWHU 3RZHU LV RQ EXW WKH OLJKWV DUH WXUQHG RII 7KH URERW GHWDLOHGLQLVRXWVLGHDQGZLOOVHHDQ\3&VOHDYLQJWKLV EXLOGLQJDQGWXUQLQJZHVW
-(7&237(5
)LYH PHWHUV IURP WKH GRRU WR D EXLOGLQJ LV DQ XQDWWHQGHG VWDQGDUG 83) MHWFRSWHU 7KH FRSWHU GRRUV DUH FORVHG DQG WKHUH DUH QR PDUNLQJV RQ WKH RXWVLGH )URP WKH IURQW RI WKH PDFKLQH H[WHQGV WKH EDUUHO RI D KHDY\EHDPZHDSRQ
7KLV GXVW\ [ P URRP KDV VHYHUDO WHPSRUDU\ LQWHULRU ZDOOV WKDW KDYH FROODSVHG 1R OLJKWV DUH RQ 7KHUH DUH GRRUV LQ WKH VOLJKWO\ FXUYHG VRXWKHUQ DQG QRUWKHUQZDOOV 7UDLQLQJFODVVHVLQPLOLWDU\HFRQRPLFDQGVRFLDOVDERWDJH ZHUHKHOGLQWKLVEXLOGLQJ7KHLQWHULRUZDOOVZHUHXVHGWR YDU\WKHVL]HRIWKHFODVVURRPV7KHUHLVQRFRYHU/LJKWV DQG SRZHU DUH RII 7KH URERW GHWDLOHG LQ LV RXWVLGH 3&V ZLOO EH VHHQ E\ WKH URERW LI WKH\ HQWHU WKH EXLOGLQJ IURPWKHVRXWKHUQGRRU
+29(5&<&/(
$Q XQPDUNHG 83) VWDQGDUG PRGHO +RYHUF\FOH VWDQGV KHUH1RRQHVHHPVWREHQHDUE\
6$6( 09NPK,067$$77'0E\ZHDSRQ
$OO RI WKH +RYHUF\FOHV DUH WKH VDPH DV GHVFULEHG LQ WKH UXOHV 1RQH UHTXLUH NH\V WR RSHUDWH DQG DOO DUH IXOO\ IXHOHG$Q\RQHDWWHPSWLQJWRUHDFKWKHKRYHUF\FOHZLOOEH VHHQE\WKHURERWDQGDWWDFNHG
2)),&(%8,/',1*
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
+29(5&$5
$QHPSW\KRYHUFDULVSDUNHGPIURPDEXLOGLQJ,WLV XQPDUNHG DQG KDV VSDFH IRU VL[ SDVVHQJHUV $ KHDY\ SURMHFWLOHZHDSRQH[WHQGVIURPWKHIURQWRIWKHYHKLFOH
7KLV EXLOGLQJ VKDSHG OLNH D WUDSH]RLG LV HPSW\ H[FHSW IRU FHLOLQJ OLJKWV DQG SDSHUV DQG RWKHU WUDVK RQ WKH IORRU $ORQJ WKH ZDOOV DUH VPDOO SRZHU RXWOHWV DV PLJKW EH XVHG IRU RIILFH HTXLSPHQW 7KHUH LV QR OLJKW DQG QR ZLQGRZVEXWWKHHDVWDQGZHVWZDOOVKDYHGRRUV $ VVXX6DWKDU%DVH&RPPDQGHUNHSWKLVRIILFHKHUH7KH FHLOLQJOLJKWVPD\EHWXUQHGRQE\WRXFKLQJDVLPSOHIORRU VZLWFKQHDUWKHGRRUV7KHHDVWZDOOLVPZLGHDQGWKH ZHVW ZDOO LV P ZLGH 7KH QRUWK DQG VRXWK ZDOOV DUH PORQJ
7KLV YHKLFOH LV DQRWKHU VWDQGDUG 83) PDFKLQH ,Q D IRUZDUG IL[HG WXUUHW LV PRXQWHG D UHFRLOOHVV DXWRPDWLF FDQQRQZLWKURXQGV7KHPDFKLQHLVIXOO\IXHOHG.H\V DUHQRWQHHGHGWRVWDUWLW7KHKRYHUFDULVDOVRZLWKLQWKH YLVXDOUDQJHRIWKHURERWGHWDLOHGLQ,WZLOODWWDFNDQ\ 3&VLWVHHV
$ 6688 62)),&(
7KH HDVW ZDOO RI WKLV HPSW\ URRP LV VOLJKWO\ FRQFDYH 7KHUH DUH FORVHG GRRUV LQ WKH QRUWK ZHVW DQG VRXWK ZDOOV(TXLSPHQWVXFKDVFRPPXQLFDWLRQJHDUSDQHOV VZLWFKLQJXQLWVDQGFRQQHFWRUVOLHVRQWKHIORRU&UDWHV VWDQG DERXW WKH URRP 7KRVH WKDW DUH RSHQ DUH HLWKHU HPSW\RUFRQWDLQDGGLWLRQDOHTXLSPHQW$ODUJHYLHZLQJ VFUHHQ GLVPRXQWHG LV SURSSHG DJDLQVW WKH HDVW ZDOO 7KHOLJKWVDUHRII
6$7+$5%$7+
,QVLGH WKLV JHRGHVLF GRPH DUH WZR URRPV RQH FRQWDLQLQJ D ODUJH WXE ZLWK SOXPELQJ FRQQHFWLRQV WKH RWKHU HPSW\ %RWK URRPV VKRZ HYLGHQFH WKDW RWKHU SOXPELQJUHODWHG HTXLSPHQW ZDV RQFH ORFDWHG KHUH 2XWHU GRRUV DUH ORFDWHG RQ WKH VRXWK DQG QRUWK 7KH ZDOO PDWHULDO LV D KDUG RSDTXH SODVWLF WKHUH DUH QR ZLQGRZV
325&+
$ [ SRUFK UXQV HDVW DQG ZHVW ,WV IORRU DQG URRI DUH PDGH RI ZRRGHQ VODWV /LJKWZHLJKW ZRRGHQ EHDPV VXSSRUWWKHURRI7KHUHLVQRUDLOLQJ 6$6,
09NPK,0M67$$77'0E\ZHDSRQ
7KLVGHFNFRQQHFWVEXLOGLQJVDQGEULGJLQJWKHJDS EHWZHHQWKHP$Q\RQHFURVVLQJWKHGHFNZLOOEHVHHQE\ WKHURERWEHWZHHQDQGDQGZLOOEHDWWDFNHG
(/(9$725/2%%<
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
23(5$7,216&(17(5
%81.(5(/(9$725 $ IHZ IHHW EHORZ WKH HGJH RI WKH VKDIW ZKLFK LV PHWHUVVTXDUHLVDIORRUZLWKQRZDOOV2QWKHIORRULVD VPDOOSHGDO 7KLV RSHQ VLGHGHOHYDWRURSHUDWHV DXWRPDWLFDOO\ RQFH WKH SHGDO LV SUHVVHG ,W ZLOO GHVFHQG PHWHUV VWRS VKLIW DQGWKHQWUDYHOKRUL]RQWDOO\HDVWZDUGWRZDUGWKHEOXIIDQG WKH ZHDSRQV EXQNHU ,W ZLOO WUDYHO PHWHUV VWRS DQG ULVH LQWR WKH EXQNHU :KHQ LW VWRSV WKH ZHVW ZDOO RI WKH VKDIWZLOOVOLGHDVLGHWRUHYHDOFRUULGRU
&255,'25
$ FRUULGRU VWUHWFKHV EHIRUH \RX IRU P 7KLUWHHQ PHWHUVDKHDGWKHUHLVDGRRULQWKHQRUWKZDOODQGRQH GLUHFWO\DFURVVLQWKHVRXWKZDOO$6DWKDUURERWVWDQGV QHDUWKHGRRUVDQGLVWXUQLQJWRZDUG\RX 6$6, 09 NPK ,0 67$ $77 '0 E\ ZHDSRQ 7KH URERW LV D 6DWKDU $WWDFN 6LPXODFUD ,QWHULRU ,W ZLOO DWWDFN DQG SXUVXH DQ\ ZKR HQWHU WKH FRUULGRU 7KUHH FRPEDW URXQGV DIWHU WKLV URERW ILUHV DQ\ ZHDSRQ WKH URERWIURPURRPZLOOPRYHWRDVVLVW7KHHOHYDWRUGRRU LVPZLGHDQGKDVVWUXFWXUDOSRLQWV
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
:($3216$&&(66
0$,1&20387(55220
/$6(57855(7
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
32:(55220
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
7KLV URRP PHDVXUHV [ P 7KHUH LV D FORVHG GRRU LQ WKH VRXWKZHVW ZDOO DQG D FORVHG GRRU LQ WKH VRXWKHDVW ZDOO,QWKHHDVWHQGRIWKHQRUWKZDOOLVWKHRSHQLQJWR DFRUULGRU3RZHUFDEOHVDQGZLULQJDUHVWUXQJDORQJWKH ZDOOVDQGIORRUVDQGGDQJOHIURPWKHFHLOLQJWRWKHIORRU 7KHDUHDLVZHOOOLWE\LQGLUHFWOLJKWLQJ 6$6,
09NPK,067$$77'0E\ZHDSRQ
7KH GRRUV VWUXFWXUDO YDOXH WR DQG DUH ORFNHG $ URERW LV JXDUGLQJ WKH DUHD ,W ZLOO PRYH WR DVVLVW WKH URERWLQDWWKHILUVWVLJQRIWURXEOH+HUHLVWKHKRXVLQJ IRU WKH KRORJUDSKLF SURMHFWRU WKDW VKRZV WKH LPDJH RI RSHQJURXQGFDVWRYHUWKHEDVHDQGEXQNHUFRPSOH[VHH 5HTXLUHG(QFRXQWHU$ 7KHKRXVLQJPHDVXUHV[PDQG KDV QR DUPRU 7KH DQWHQQD RXWVLGH LV SURWHFWHG E\ DQ DOEHGRVFUHHQ7KHKRORJUDSKGRHVQRWRSHUDWHDWQLJKW
0DVVLYHFDEOHVOHDGXSLQWRDWXUUHWKRXVLQJLQWKHHDVW ZDOO 7KH EDFN KDOI RI D PRXQWHG KHDY\ ODVHU LV DOVR YLVLEOH$VPDOOFRPSXWHUVWDQGVDJDLQVWWKHVRXWKZDOO 7KH KHDY\ ODVHU LV FRPSOHWHO\ XQGHU FRQWURORI HLWKHU WKH PDLQFRPSXWHU RUWKHVPDOOFRPSXWHULQWKHFRUQHU ,WILUHVLQDGHJUHHDUF7KHUHLVDQHPHUJHQF\SRZHU VWRUDJHXQLWXQGHUWKHIORRUFRQWDLQLQJD6(8FKDUJH WKDWZLOORSHUDWHWKHODVHULIPDLQSRZHULVFXWRII
&255,'25
7KLV FRUULGRU LV P ZLGH DQG P ORQJ DQG RSHQV RXW LQWRURRPVDWLWVQRUWKDQGVRXWKHQGV,QWKHHDVWZDOO LVWKHRSHQLQJWRDQRWKHUFRUULGRU,QWKHZHVWZDOODUH WZRGRRUVERWKFORVHG 7KH GRRUV WR URRPV DQG DUH ERWK ORFNHG 7KHLU VWUXFWXUDOYDOXHLV
0$,1$1'5(&2,//(66 5,)/(7855(7
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
6725$*(&21752/5220
/DUJH SDQHOV RI HOHFWULFDO FRQQHFWLRQV OLQH WKH ZDOOV RI WKLV[PURRP$EORFNRIPDFKLQHU\VLWVLQWKHFHQWHU DQG H[WHQGV WR WKH FHLOLQJ ,W LV FRQQHFWHG WR WKUHH VPDOOFRPSXWHUV 7KH PDFKLQHU\ LV D VHQVRUVFDQQLQJ XQLW WKDW IHHGV GDWD WR WKH PDLQ FRPSXWHU 'HVWUXFWLRQ RI WKH VFDQQLQJ XQLW UHGXFHV WKH DWWDFN QXPEHU RI WKH EXQNHU ZHDSRQV VHH 7DEOH 7KHZDOOSDQHOVFRQWDLQSRZHUWHUPLQDOVIRUWKH YDULRXVZHDSRQVV\VWHPVDQGLIGHVWUR\HGZLOOIRUFHWKH ZHDSRQVEXQNHURQWRLQWHUQDOSRZHUVXSSOLHVDQGKDOWILUH IURPWKHUHFRLOOHVVULIOH
:($3216$&&(66
7KLV URRP LV HPSW\ DQG PHDVXUHV [ P ,Q LWV ZHVW ZDOOLVDFORVHGGRRU 7KHGRRUWRURRPLVORFNHGLWVVWUXFWXUDOYDOXHLV
52&.(7/$81&+5220
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
5RFNHWV IURP WKH PDJD]LQH DUH WUDQVSRUWHG DORQJ WKH FRQYH\RU EHOW WR WKH ORDGHU LQ WKH QRUWKHDVW FRUQHU 7KH PHFKDQLFDO DUPV LQVXUH WKH SURSHU SRVLWLRQLQJ RI WKH URFNHWV DQG DUH FRQWUROOHG HQWLUHO\ E\ WKH FRPSXWHU 7KH PLVVLOHORDGHUWDNHVPLVVLOHVIURPWKHEHOWDQGORDGVWKHP GLUHFWO\LQWRWKHODXQFKWXEH7KHFRPSXWHUZLOOQRWDOORZ WKH ODXQFKHU WR EH XVHG DJDLQVW WKH DSSURDFKLQJ 6DWKDU ZDUVKLS LQ WKH 2SWLRQDO (QFRXQWHU XQOHVV LW LV UHSURJUDPPHG
0$*$=,1(
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
237,21$/(1&2817(5
,I \RX ZLVK WR FRQWLQXH WKH JDPH DQG LQFOXGH WKH DSSURDFKRIWKH6DWKDUZDUVKLSWKHIROORZLQJVXJJHVWLRQV PD\EHXVHG,I\RXZLVKWRXVHWKH.QLJKW+DZNV5XOHV WKH DSSURDFKLQJ VKLS ZLOO EH D KHDY\ FUXLVHU ,W PD\RU PD\QRWEHHVFRUWHGE\GHVWUR\HUVDV\RXFKRRVH 7KH VKLS PD\ UHPDLQ LQ RUELW DQG VHQG GRZQ D SDUW\ RI 6DWKDUIRUIXOOLQWHUDFWLRQZLWKWKHSOD\HUFKDUDFWHUV3&V PD\ XVH ERWK WKH ZDUWDQN DQG WKH 6DWKDU EDVH DJDLQVW WKH QHZ IRUFHV ,I WKLV RSWLRQ LV FKRVHQ \RX ZLOO KDYH WR GHOD\RUHOLPLQDWHWKHVHOIGHVWUXFWV\VWHPVRIWKHEXQNHU DQGWDQN 7KH 3&V PD\ ILUH WKH EXQNHU V URFNHW ODXQFKHU DW WKH DSSURDFKLQJ ZDUVKLS 7KLV ZLOO DOVR UHTXLUH GHOD\LQJ WKH EXQNHU VHOIGHVWUXFW DV ZHOO DV WKH SRVVLELOLW\ RI WKH ZHDSRQV DQG FRPSXWHUV QHHGLQJ H[WHQVLYH UHSDLU IURP GDPDJHWDNHQGXULQJSOD\ 2QHPHWKRGRIKDQGOLQJWKHILUHRIWKHURFNHWODXQFKHULV WRXVHDFXPXODWLYHEDVHSHUURXQG,IDURFNHWKLWV WKH ZDUVKLS UROO DV PDQ\ WLPHV DV WKHUH DUH PLVVLOHV PD[LPXP RI RQ D WHQWK PLVVLOH WKHQ WKH ZDUVKLS ZLOOFUDVKDVLWZRXOGQRWEHSUHSDUHGIRUILUHIURPLWVRZQ EDVH 7R H[WHQG WKH VFHQDULR IXUWKHU FKDUDFWHUV PLJKW KXQWGRZQ6DWKDUVXUYLYRUVRIWKHFUDVK
=(7$6HFWLRQ
7DEOH
D 6RPHWLPHV D ELVURQ ZLOO JR PDG DQG ZDQGHU LQWR WKH IRUHVW 0RVW HQFRXQWHUV ZLOO EH DW VKRUW UDQJH DQG WKH ELVURQ ZLOO DWWDFN LQVWDQWO\ 7KHUH LV D FKDQFH SHU FKDUJHWKDWWKHELVURQZLOOKLWDWUHH E 1RPDGV ZLOO KLGH LQ WKH JUDVV 8VH DYHUDJH +HOLRSH VWDWVRIRUWKRVHLQ3ODQQHG(QFRXQWHUS F 6KHLVLQWKHQHVWDQGDWWDFNVDQ\WKLQJLQUDQJHEXWZLOO QRW OHDYH WKH QHVW 7KHUH ZLOO EH \RXQJ EXW QRQH DUHSRLVRQRXVDOOELWHIRUGGDPDJHZLWKWKHVDPH DWWDFNQXPEHUDVDGXOW
6WDUPLVW5$1'20 (1&2817(56 5ROOGHDFKGD\DQGQLJKW(QFRXQWHURFFXUVRQDUROORI RU E\ GD\ RU E\ QLJKW (QFRXQWHU GLVWDQFH LV GHWHUPLQHG E\ VXUSULVH WHUUDLQ VHH 0RYHPHQW RU FUHDWXUHGHVFULSWLRQVHH$OLHQ&UHDWXUH8SGDWH)LOH
3ODLQV
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
)RUHVW 'LH5ROO
&UHDWXUH :LVSHHV 3XII3XFNHUV &UD]HG%LVURQD 1RPDGVE :LVSHHV 3XII3XFNHUV )HPDOH6QLNNHUF 1RPDGVE :LVSHHV 3XII3XFNHUV
5LYHU
'LH5ROO &UHDWXUH 3XII3XFNHUV :LVSHHV *DVS &XGGDD 3XII3XFNHUV 6OLWKHU :LVSHHV *DVS &XGGDD *DVS D &XGGDRQO\DWWDFNLQWKHZDWHU
7DEOH
2)):25/' 5$1'20 (1&2817(56 'LH5ROO
&UHDWXUH /LOO\3R &OLQJLQJ9LUXV &UHHSVSLQH )URJJV *UDSDOV )LQJHUOLHV :HHSLQJ:DOORZV 6TXLULOOHWV 6DLOVQDLOV 7LFNWRFN7UHHV
7DEOH
:($3216 $))(&7,1*7$1. :HDSRQ /DVHU5LIOH GLVFKDUJHRI6(8LQVLQJOHVKRW +HDY\/DVHU 6RQLF'HYDVWDWRU /DVHU5LIOH 5HFRLOOHVV5LIOH *UHQDGH 5RFNHW/DXQFKHU 1XFOHDU3LVWRO 1XFOHDU5LIOH
6WUXFWXUDO 'DPDJH SHU6(8 SHU6(8 SHU6(8 WKURZQ LISODFHG SHUVKRW SHUVKRW
7DEOH
:$57$1. :($3216
1XFOHDU5LIOH 'DPDJH $PPR 3RZHU3ODQW 6(8 1$ 5DWH 'HIHQVH 1RQH 3RLQW%ODQN P 6KRUW P 0HGLXP NP /RQJ NP ([WUHPH NP +HDY\/DVHU 'DPDJH SHU6(8 $PPR 3RZHU3ODQW 6(8 5DWH 'HIHQVH $OEHGR 3RLQW%ODQN 1$ 6KRUW 1$ 0HGLXP P /RQJ PNP ([WUHPH NP
5RFNHW/DXQFKHU 5RFNHWV 1$ ,QHUWLD 1$ P P P P (OHFWURQLF0LVVLOH 6SHFLDO 5RFNHW 1$ 1RQH 1$ NP NP NP NP
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
0LVVLOH UDQJH NP QHXWUDOL]HV HOHFWURQLF IXQFWLRQV ZLWKLQNP
7DEOH
:$57$1.+,7 /2&$7,216
,I WKH QXPEHU RI VWUXFWXUDO SRLQWV RI GDPDJH IURP D VLQJOH ZHDSRQ HTXDOV RU H[FHHGV LQ D VLQJOH URXQG RI FRPEDW XVHWKHIROORZLQJWDEOHWRGHWHUPLQHLIDQ\GDPDJHKDVEHHQ WDNHQ LQ WKH LQWHULRU RI WKH WDQN 8VH WKH WDQN GLDJUDP WR ORFDWHDQGPDUNRIIKLWV
$(OHFWURQLFPLVVLOH +3RUWURFNHWODXQFKHURSHUDWRU %5RFNHWODXQFKHU ,5RFNHWODXQFKHURSHUDWRU &+HDY\ODVHU -+HDY\ODVHURSHUDWRU '1XFOHDUULIOH .$X[LOLDU\GULYHU (&DSWDLQ VSRVLWLRQ /,QHUWLDVKLHOGFRQWUROSDQHO )'ULYHU VSRVLWLRQ 03RZHUVXSSO\ *1XFOHDUULIOHRSHUDWRU 1$FFHVVKDWFK
7DEOH
7DEOH
%81.(5+,7 /2&$7,217$%/(
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
&216758&7 5$1'20 (1&2817(56 'LH5ROO
&UHDWXUH *UDSDOV /LOO\SR )LQJHUOOLHV 7LFNWRFNWUHHV &OLQJLQJYLROHWV 6TXLUULOOHWV &UHHSVSLQH 6DLOVQDLOV :HHSLQJZDOORZV )URJJV
7DEOH
6$7+$552%276
6$6(6DWKDU$WWDFN6LPXODFUD([WHULRU 0RYHPHQW /LIWKRYHUXQLWNPKRQOHYHOJURXQG (TXLSPHQW ,QIUDUHG,5 XOWUDYLROHW89 YLVLEOHOLJKW VFDQQHUVVXUIDFHDLUVHDUFKUDGDU,589 MDPPLQJV\VWHPVODVHUVHDUFKOLJKW UDGLRUDGDUMDPPLQJXQLWOHYHOFRPSXWHU EUDLQDOEHGRVNLQLQVXODWLRQKRORVFUHHQ JHQHUDWRU :HDSRQV• 5RFNHWODXQFKHUZLWK PLVVLOHV • (OHFWULFGHIHQVHILHOGWRXFKG • 6RQLFVWXQQHUDUP • /DVHUULIOHDUP6(8VKRW • 7KHVHFRQGDU\WHQWDFOHVRIWKLVURERWDUH XVHGIRUKHDY\OLIWLQJ$VZHDSRQVWKH\ VWULNHIRUGGDPDJHHDFKDWVLQJOHRU WZLQWDUJHWV5DQJHRIWKHDUPVLVP $WWDFN ,0 6WDPLQD 6$6,6DWKDU$WWDFN6LPXODFUD,QWHULRU 0RYHPHQW 7UDFNHGNPKRQOHYHOJURXQG (TXLSPHQW ,QIUDUHG,5 XOWUDYLROHW89 YLVLEOHOLJKW VFDQQHUVVXUIDFHDLUVHDUFKUDGDU,589 MDPPLQJV\VWHPVODVHUVHDUFKOLJKW UDGLRUDGDUMDPPLQJXQLWOHYHOFRPSXWHU EUDLQDOEHGRVNLQLQVXODWLRQKRORVFUHHQ JHQHUDWRU :HDSRQV •5RFNHWODXQFKHUZLWK PLVVLOHV •(OHFWULFGHIHQVHILHOGWRXFKG •$XWRSLVWRODUPDPPRQRUHORDGUHT •$XWRSLVWRODUPDPPRQRUHORDGUHT •6WXQSLVWROILUHVIRUZDUGRQO\LQGLUHFWLRQ URERWLVIDFLQJ •7KHVHFRQGDU\WHQWDFOHVRIWKLVURERWDUH XVHGIRUKHDY\OLIWLQJ$VZHDSRQVWKH\VWULNH IRUGGDPDJHHDFKDWVLQJOHRUWZLQ WDUJHWV5DQJHRIWKHDUPVLVP $WWDFN ,0 6WDPLQD
0D[LPLOOLDQ0DOOLJLJJDIRUPHUVHFRQGPDVWHUDQGQDYLJDWRURI D 9UXVN IUHHPHUFKDQW VKLS KDV KLUHG \RX IRU D SULYDWH H[SHGLWLRQWRDQXQFKDUWHGSODQHWKHFDOOV6WDUPLVW'XULQJKLV ODVW YR\DJH 0DOOLJLJJ PDGH DQ HPHUJHQF\ ODQGLQJ RQ 6WDUPLVW 7KH SODQHW ZDV ZLWKLQ WKH QRUPDO UDQJH RI IRU DOO UDFHV $FFRUGLQJ WR 0D[ WKHVXUIDFH RI6WDUPLVW LV EURNHQE\ FUDFNV WKDW DUH NLORPHWHUV GHHS FDOOHG ULIWV ,W ZDV LQ RQH RI WKHVH ULIWVWKDWKLVVKLSODQGHG,QWKHULIWWKHFUHZIRXQGLQWHOOLJHQW OLIH D SUHGRPLQDQWO\ QRPDGLF FXOWXUH DQG RQH QDWLYH YLOODJH ORFDWHG DORQJ WKH ULYHU QHDU D QDUURZ VHFWLRQ RI WKH ULIW 0D[LPLOOLDQ OHDUQHG WRH QDWLYH ODQJXDJH XVLQJ SRO\YR[ FRPSXWHUVDQGWKDWWKHQDWLYHVFDOOHGWKHPVHOYHV+HOLRSHV 'XULQJ WKH FRXUVH RI KLV VKRUW VWD\ RQ WKH SODQHW 0D[LPLOOLDQ IRXQGDVPDOOSLHFHRIIXVHGPHWDOQHDUWKHYLOODJH7KHQDWLYH FXOWXUHODFNHGWKHVRSKLVWLFDWLRQWRSURGXFHKLJKWHPSHUDWXUHV DQG LW ZDV REYLRXV WKH PHWDO KDG QRW IXVHG E\ DQ\ QDWXUDO PHDQV VXFK DV YROFDQLF DFWLRQ 0D[ WRRN WKH PHWDO ZLWK KLP ZKHQKHOHIW6WDUPLVW /DWHU0D[KDGWKHSLHFHRIPDWHULDOWHVWHGDQGIRXQGLWWREHD SURGXFW RI QXFOHDU IXVLRQ 7KLV LQIRUPDWLRQ VWDUWOHG KLP IRU LW LPSOLHG WKDW DQ DGYDQFHG FLYLOL]DWLRQ PD\ KDYH EHHQ RQ 6WDUPLVW VRPHWLPH LQ WKH SDVW 6LQFH KH NQHZ DQ RIILFLDO H[SHGLWLRQ ZRXOG EH VHQW WR 6WDUPLVW VRRQ IROORZLQJ KLV FDSWDLQ VUHSRUWWRWKHDXWKRULWLHV0D[ZDVHDJHUWRJHWWKHUH ILUVW,IKHFRXOGILQGHYLGHQFHRIDORVWFLYLOL]DWLRQDQGSHUKDSV ORFDWH VRPH DUWLIDFWV KH FRXOG EHFRPH D ZHDOWK\ PDQ 7KHUHIRUHDIWHUUDLVLQJWKHIXQGVKHSXUFKDVHGDQGUHILWWHGDQ ROGVKLSWKH966&HQWLVSHHGDQGKLUHG\RXWRDFFRPSDQ\KLP WR6WDUPLVWRQDQLQWHUVWHOODUWUHDVXUHKXQW 0D[LPLOOLDQKDVODQGHGWKH966&HQWLVSHHGLQWKHVDPHULIWVLWH DV EHIRUH +H ZLVKHV WR SURFHHG LPPHGLDWHO\ WR WKH YLOODJH DUHD DQG UHHVWDEOLVK FRQWDFW ZLWK WKH QDWLYHV +H ZDQWV WR OHDUQPRUHDERXWWKHIXVHGPDWHULDO)RUWKLVUHDVRQ\RXPXVW WDNH FDUH WR PDLQWDLQ IULHQGO\ UHODWLRQV ZLWK WKH +HOLRSHV IRU 0D[IHHOVWKDWWKHVHFUHWRIWKHVWUDQJHPDWHULDOLVLQWKHDUHD RIWKHYLOODJH 7KH YLOODJH FXOWXUH LV REYLRXVO\ PRUH KLJKO\ GHYHORSHG WKDQ WKDWRIWKHRWKHUQRPDGVLQWKHULIW$HULDOSKRWRJUDSKVWDNHQ GXULQJUHHQWU\VKRZVL]DEOHEXLOGLQJVDQGDODUJHFRPSOH[RQ SODWIRUPVVWDQGLQJLQWKHULYHU
6\VWHP1DPH +DELWDEOH3ODQHWV 67$5&2/25 0RRQV &OLPDWH5DQJH $WPRVSKHUH 'LDPHWHU *UDYLW\ /HQJWKRI'D\ 7HPSHUDWXUH &RORQL]HUV 1DWLYH/LIH
6XQGRZQ 6WDUPLVW 2UDQJH 1RQH &RROZDUPWRIULJLG QLWURJHQR[\JHQ LQHUWJDVHV NP KRXUV $YHUDJHVGHJUHHV&HOVLXV 1RQHQHZO\GLVFRYHUHGE\966 &HQWLVSHHG6\VWHPSUHVHQWO\XQGHU LQYHVWLJDWLRQE\&ODULRQ'HSDUWPHQW RI([WUDVRODU$IIDLUV1R GHWHUPLQDWLRQDVWRSURFHGXUHRU GLVSRVLWLRQKDVEHHQPDGH 2QO\UHSRUWHGVSHFLHVLVDQHUHFW ELSHGDOKRPLQLGKDYLQJDSULPLWLYH QRPDGLFHFRQRP\DQGORZ WHFKQRORJ\7KHVHQDWLYHVDUHNQRZQ DV+HOLRSHVLQWKHLURZQODQJXDJH
7+(+(/,23(6
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
$YHUDJH+HOLRSH6WDWLVWLFV
67567$ 36 3LQFHUVG '(;56 ,0 ,17/2* 5: 3(5/'5 0 6SHFLDO$ELOLWLHV ,PPXQH WR HOHFWULFDO DWWDFNV WDNH RQHKDOI GDPDJH IURP ODVHUV WDNH GRXEOH GDPDJH IURP VRQLFZHDSRQV SLQFHUV SHQHWUDWH VNHLQVXLWV WKUHH DWWDFNV SHU URXQG LQ PHOHH SLQFHUVELWH
%LVURQ
7\SH /DUJH+HUELYRUH 1XPEHU 0RYH 6ORZVHH6SHFLDO$WWDFN ,056 6WDPLQD $WWDFN 'DPDJH GG 6SHFLDO$WWDFN &KDUJH 6SHFLDO'HIHQVH 1RQH 1DWLYH:RUOG 6WDUPLVW0HDGRZVDQG*UDVVODQGV
'(6&5,37,21 7KH ELVURQ LV D ODUJH DQLPDO ZLWK PDVVLYH UDPOLNHKRUQVFXUOLQJRYHULWVKHDG6KRUWIRUHOHJVFDXVHWKH ERG\WRVORSHXSZDUGVLQWKHUHDU7KHELVURQUHTXLUHVODUJH DPRXQWV RI PHDGRZ JUDVV WR VXVWDLQ LWV EXON ,WV QRVH LV ORQJ QDUURZ DQG SDUWLDOO\ SUHKHQVLOH DQG LV XVHG WR KHOS XSURRW SODQWV %LVURQ JDWKHU LQ IDPLO\ JURXSV XS WR 7KH PDOHV DWWDFN DQ\WKLQJ WKDW DSSURDFKHV ZLWKLQ P RI WKH JURXS7KHUHLVRQHPDOHSHUIRXUELVURQHQFRXQWHUHG
&KDUJH WKLV VSHFLDO DWWDFN IRUP LV WHUULI\LQJ LQ LWV VSHHG DQGSRZHU,QRQHPHOHHWXUQWKHELVURQFRYHUVP,ILW KLWV WKH WDUJHW WDNHV G GDPDJH DV ZHOO DV SRVVLEOH GLVSODFHPHQW DV QRWHG EHORZ 'XULQJ WKH VHFRQG PHOHH URXQG LI D VHFRQG WDUJHW LV ZLWKLQ WKH ELVURQ V YLVLRQ WKH DQLPDOZLOOFRYHUPWR GHOLYHUGRIGDPDJHDVZHOO DVGLVSODFHPHQW %HFDXVH RI LWV LPPHQVH SRZHU ZHLJKW DQG VSHHG D ELVURQ PD\GLVSODFHLWVWDUJHW:HLJKWWRNJZLOOEHKXUOHGG WLPHV P :HLJKW WR NJ ZLOO EH PRYHG P GLFH UROO :HLJKW RYHU NJ PD\ EH NQRFNHG RYHU GHSHQGLQJ XSRQ FLUFXPVWDQFHV DQG VL]H RI WDUJHW $V DQ H[DPSOHDELVURQZLOOQRWRYHUWXUQDVSDFHVKLSEXWZLOONQRFN RYHUPRVWJURXQGYHKLFOHVDQGKRYHUYHKLFOHVLIZLWKLQPRI WKHJURXQG ,I WKH ELVURQ VXUYLYHV WZR FKDUJHV LW ZLOO KDYH WR UROO IRU D EDVH FKDQFH RI KHDUW DWWDFN RQ HDFK DGGLWLRQDO DWWDFN ZLWKEHLQJDGGHGFXPXODWLYHO\%LVURQZLOOIDLQWDIWHUILYH WRWDO DWWDFNV DOWKRXJK WKH\ PD\ QRW GLH 7KH\ ZLOO EH XQFRQVFLRXVIRUVHYHUDOKRXUV &XGGD 7\SH 6PDOO&DUQLYRUH 1XPEHU G 0RYH 9HU\)DVW ,056 6WDPLQD $WWDFN 'DPDJH G 6SHFLDO$WWDFN )HHGLQJ)UHQ]\ 6SHFLDO'HIHQVH 1RQH 1DWLYH:RUOG 6WDUPLVW:DWHU '(6&5,37,21 &XGGD DUH FDUQLYRURXV ILVK RQH PHWHU ORQJ WKDW XVXDOO\ VFKRRO LQ WKH IHHGLQJ DUHDV RI WKH JDVS +RZHYHU VFKRROV DQG LQGLYLGXDOV FDQ EH IRXQG DQ\ZKHUH WKHUHLVIORZLQJZDWHU $ FXGGD DWWDFN LV VLPSOH DQG VWUDLJKWIRUZDUG 7KH\ ELWH DQG GR G SRLQWV RI GDPDJH SHU WXUQ LI VXFFHVVIXO ,I WKH\ VXFFHHG WKH\ GR QRW KDYH WR UROO IRU DWWDFN LQ VXEVHTXHQW URXQGV7KH\ERUHLQWRWKHYLFWLPDVWKH\ELWHDQGQRIXUWKHU
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
SRV DFW DV QDWXUDO FDPRXIODJH 7KH SODQW KDV WKH DELOLW\ WR EOHQG LQ ZLWK LWV VXUURXQGLQJV LQ WKH VDPH PDQQHU DV D FKDPHOHRQ7KHHIIHFWZLOOODVWIRURQHKRXURUORQJHULIWKH FKDUDFWHU KDV SDUW RI WKH SDG LQ ZDWHU 7KH FRQVWUXFWV ORRN H[DFWO\OLNHUHDO,LOO\SRVWRDQ\
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
,I WKH SOD\HUV GR QRW ZLVK WR UROO XS WKHLU RZQ FKDUDFWHUV WKH\ PD\FKRRVHIURPWKHVHOHFWLRQEHORZ
'URPRQG 'UDODVLWH 67567$ 36 '(;56 ,0 ,17/2* 5: 3(5/'5 0 6SHFLDO$ELOLWLHV(ODVWLFLW\/LH'HWHFWLRQ 6NLOOV0LOLWDU\36$%HDP:HDSRQV (TXLSPHQW/DVHU3LVWROV)UDJ*UHQDGHV6NHLQVXLW $OEHGR6FUHHQ3RZHU%HOWSDFN
'LUDFPDQ 'UDODVLWH 67567$ 36 '(;56 ,0 ,17/2* 5: 3(5/'5 0 6SHFLDO$ELOLWLHV(ODVWLFLW\/LH'HWHFWLRQ 6NLOOV0LOLWDU\36$3URMHFWLOH:HDSRQV%HDP:HDSRQV (TXLSPHQW$XWRSLVWRO7KURZLQJ9LEUREODGHV *DV 0DVN6NHLQVXLW$OEHGRVFUHHQ3RZHU%HOWSDFN+RYHUF\FOH
9L\L]]L
.UDNNHU-DNN 9UXVN0DOH 67567$ 36 '(;56 ,0 ,17/2* 5: 3(5/'5 0 6SHFLDO$ELOLWLHV$PELGH[WHULW\&RPSUHKHQVLRQ 6NLOOV7HFKQRORJLFDO36$&RPSXWHUV5RERWLFV3V\FKR 6RFLDO (TXLSPHQW/DVHU3LVWRO/DVHU5LIOH,QHUWLD6FUHHQ)UDJ *UHQDGHV5DGLRSKRQH0DJQLJRJJOHV&KURQRFRP3RZHU %HOWSDFN
'D]]HOO 9UXVN)HPDOH 67567$ 36 '(;56 ,0 ,17/2* 5: 3(5/'5 0 6SHFLDO$ELOLWLHV$PELGH[WHULW\&RPSUHKHQVLRQ 6NLOOV0LOLWDU\36$3URMHFWLOH:HDSRQV7KURZQ:HDSRQV 0DUWLDO$UWV (TXLSPHQW$XWRSLVWRO$XWRULIOH6NHLQVXLW$OEHGRVFUHHQ 3RZHU%HOWSDFN)UDJ*UHQDGHV7DQJOHU*UHQDGHV
0DVH&RUULJRQ +XPDQ0DOH 67567$ 36 '(;56 ,0 ,17/2* 5: 3(5/'5 0 6SHFLDO$ELOLWLHV1RQH 6NLOOV%LRVRFLDO36$0HGLFDO(QYLURQPHQWDO%HDP :HDSRQV (TXLSPHQW0HGNLW*DV0DVN/DVHU3LVWRO,QHUWLD6FUHHQ 3RZHU%HOWSDFN
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¶V FHQWHULVDPDVVLYHS\UDPLGDQGDQ HQWLUHEXLOGLQJFRPSOH[VHWRQ SODWIRUPVDERYHWKHULYHU :KDWGLG0D[ILQGWKDWPDGHKLPHDJHU WRKLUH\RXDQLQWUHSLGEDQGRI DGYHQWXUHUVWRMRLQKLPLQUHWXUQLQJWR 6WDUPLVW":KDWVHFUHWJDYH0D[YLVLRQV RIZHDOWKDQGEURXJKW\RXDOOWRWKLV JROGHQULIWDQGWKHSURPLVHRIGDQJHU
6)