Astrologia Restaurata: Astrology Restored



Astrology Restored William Ramesey 1653 Edited and annotated by Kim Farnell

 

,QWURGXFWLRQ

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·W DSSHDU WR KDYH EHHQ SDUWLFXODUO\ IRQG RI ZRPHQ DW DOO DV KH VD\V LQ9R[ 6WHOODUXP ´$QG QRZ , FDQQRW EXW UHMRLFH ZKHQ , FRQVLGHU WKDW , DP QRW PDUULHG«QRWKLQJ WR GR ZLWK ZRPHQ« SURPLVH\RXWKH\DUHWRRKRWWRPHGGOHZLWKµ$WOHDVWSDUWRIKLVGLVOLNHRI ZRPHQFRXOGEHDWWULEXWHGWRKLVIHDURIFDWFKLQJV\SKLOLV´2U(QJOLVKSR[ DVLWPD\QRZEHWHUPHGIRUWKHIUHTXHQF\RILWDPRQJXVµ   )RU PXFK RI KLV OLIH KH OLYHG ZLWK KLV IDWKHU LQ +ROERUQ /RQGRQ 0HGLFLQH ZDV KLV PDLQ LQWHUHVW DQG KH KDG D SDUWLFXODU HQWKXVLDVP IRU SRLVRQV DQG YHQRP DV VKRZQ LQ KLV ZRUNV RQ WKH VXEMHFW  $OWKRXJK LW FRPHV DV QR VXUSULVH WKDW KH FLWHG RSLXP DV EHLQJ GDQJHURXV KH ZDV HTXDOO\VFDWKLQJRIWKH´PHDQHVWDQGPRVWXQZRUWK\RIDOOYHJHWDEOHVµ²WKH OHHN+HEHOLHYHGWKHPWRFDXVHHSLOHSV\DQGPDGQHVV,QIDFWWKHERG\·V UHDFWLRQVWRFHUWDLQIRRGVHHPVWRKDYHEHHQDFRQVWDQWZRUU\WR5DPHVH\ DVKHUHODWHV´$JHQWOHPDQRQHGD\DW'LQQHUDWP\IDWKHUV,UHPHPEHUIHOO IURP KLV &KDLUH LQ D VZRRQ DW WKH VHUYLQJ XS RI D FXVWDUGµ &OHDUO\ \RX FRXOGQHYHUEHWRRFDUHIXO   0XFK RI KLV WLPH ZDV VSHQW ZLWK KLV FORVH IULHQG )HUGLQDQGR *RUJHV   ZKR ZDV WKH JUDQGVRQ RI WKH QDYDO DQG PLOLWDU\ FRPPDQGHU RI WKH VDPH QDPH DQG WKH VRQ RI -RKQ *RUJHV )HUGLQDGR·V JUDQGIDWKHUZDVDQ(QJOLVKFRORQL]HUDQGWKHSURSULHWRURI0DLQH+HZDV NQLJKWHG IRU KLV VHUYLFHV WR +HQU\ ,9 DQG EHFDPH PLOLWDU\ JRYHUQRU RI 3O\PRXWK ,Q  )HUGLQDQGR VROG DOO ULJKWV WR 0DLQH WR WKH VWDWH RI 0DVVDFKXVVHWWV IRU … +H PDUULHG 0DU\ $UFKGDOH RQ QG 0D\  DQGLVUHPHPEHUHGIRUZULWLQJDVHULHVRISDPSKOHWVDERXWKLVJUDQGIDWKHU·V OLIH5DPHVH\LVNQRZQWRKDYHOLYHGLQ3O\PRXWK(QJODQGLQDQGWKH *RUJHVIDPLO\KDGSURSHUW\LQ/RQGRQ   

,Q5DPHVH\ZURWH´)URPP\DERDGLQ/RQGRQRQ-DQXDU\  «EHORYHGIULHQG)HUGLQDQGR*RUJHVZKRP,DPZLOOLQJWRSOHDVXUHLQ D KLJKHU QDWXUH«IULHQGV IRU WZHQW\ \HDUV VLQFH VFKRRO IULHQGV«µ )HUGLQDQGR FRQWULEXWHG WRZDUGV 5DPHVH\·V ZULWLQJV E\ZULWLQJOHWWHUVIRU KLPWRDQVZHU   5DPHVH\GHWDLOVKLVOLIHVWRU\LQ$VWURORJ\5HVWRUHG²SDUWLFXODUO\WKH VDJDRIKLVGLVSXWHZLWK'U+RPHV7KLVZDVQRWDKDSS\WLPHIRUKLPDV :LOOLDP 5RZODQG QRWHG ´´3RRU :LOO LW VHHPV E\ KLV 3DPSKOHW KH ZDV GLVWUDFWHG ZKHQ KH SHQQ·G LW )RU KH FRQIHVVHWK LQ KLV (SLVWOH WR $OO :HOO :LVKHUV FWKDWKHZDVPRUHSHUSOH[HGDQGWURXEOHGDWWKDWLQVWDQWRIWLPHKLV 7UHDWLVHZDVSHQQ·GWKDQDOOKLVOLIHµ   5DPHVH\·V ODVW SXEOLFDWLRQ ZDV LQ  DQG QR UHFRUG KDV EHHQ IRXQGRIWKHQODWWHUSDUWRIKLVOLIHDQGLWLVXQNQRZQZKHUHDQGZKHQKH GLHG   $VWURORJ\ 5HVWRUHG LV DQ LPSRUWDQW ZRUN DV LW UHPDLQV WKH SULPDU\ VRXUFHGLUHFWO\RULQGLUHFWO\IRUHOHFWLRQDODVWURORJ\9LYLDQ5REVRQ·VERRN (OHFWLRQDO$VWURORJ\ LVDOPRVWFRPSOHWHO\SODLJHULVHGIURP5DPHVH\·V ZRUN  $OWKRXJK PXFK RI 5DPHVH\·V ZRUN GLIIHUV OLWWOH IURP WKDW RI RWKHU ZULWHUVVXFKDV:LOOLDP/LOO\KLVGHYRWLRQWRGHWDLOPHDQVWKDWKHSURYLGHV PRUH LQIRUPDWLRQ LQ SODFHV VXFK DV ZKHUH KH OLVWV SODQHWDU\ UXOHUVKLSV 5DPHVH\·V LQWHUHVWV YDU\ IURP RWKHU FRQWHPSRUDU\ DVWURORJHUV DQG KH GHYRWHV IDU PRUH VSDFH WR ZHDWKHU SUHGLFWLRQ IRU H[DPSOH WKDQWKH\GR 2QHRIWKHILUVWZULWHUVLQ(QJOLVKUDWKHUWKDQ/DWLQRQDVWURORJ\KLVZRUN ZDVWRUHDFKDZLGHDXGLHQFHDQGZDVVWLOOEHLQJUHIHUUHGWRZHOOLQWRWKH WZHQWLHWKFHQWXU\7KH6HFRQG:RUOG:DUOHGWRWKHORVVRILQQXPHUDEOH WH[WV DQG 5DPHVH\·V FRQWULEXWLRQ ZDV DOPRVW IRUJRWWHQ XQWLO KLV ZRUN EHFDPHDYDLODEOHLQUHSULQWGXULQJWKHODVWIHZ\HDUV 

 6RXUFHV 

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·V6HFXULW\RU$3KLORVRSKLFDODQG3K\VLFDO'LVFRXUVH 6KRZLQJ WKH 1DPHV 1DWXUHV DQG 9LUWXHV RI DOO VRUWV RI 9HQRPV DQG 9HQHPRXV WKLQJV/RQGRQ 'LFWLRQDU\RI1DWLRQDO%LRJUDSK\   

0DQ\ WKDQNV WR %HUQDUG (FFOHV IRU KLV KHOS WUDQVODWLQJ WKH /DWLQ H[WUDFWV DQG WR 'LDQD 5RVHQEHUJ LQ KHOSLQJ PH WR WUDFN WKH ORFDWLRQ RI VRPH YHU\ HOXVLYH SODFH QDPHV  $OVR WKDQNV WR &DURO\Q 0LQVNHU IRU IRUZDUGLQJ D UHTXHVWIRUKHOSGHILQLQJVRPHDUFKDLFWHUPVWRKHUOLVW6WDUVWXG\  1RWHVRQWKHDQQRWDWLRQV  )RU WKH HDVH RI VWXG\ RI 5DPHVH\·V ZRUN WKLV HGLWLRQ KDV EHHQ KHDYLO\ DQQRWDWHG $UFKDLF WHUPV WKDW ZHUH FRPPRQ LQ 5DPHVH\·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·VRZQQRWHVWRWKHWH[WRULJLQDOO\LQFOXGHGLQWKHPDUJLQV DUH LQFOXGHG DV LWDOLVFLVHG IRRWQRWHV  $OO RI 5DPHVH\·V QRWHV DUH LQFOXGHG ZLWKWKHH[FHSWLRQRIWKHPDQ\´QRWHµDQGVLPLODUVWDWHPHQWVKHLQFOXGHG ZKLFKRZLQJWRWKHLUIUHTXHQF\GROLWWOHWRHOXFLGDWHRXUXQGHUVWDQGLQJ  1RWHVRQVRXUFHV  $OWKRXJK WKH VRXUFHV XVHG IRU WKH DQQRWDWLRQV DUH WRR QXPHURXV WR PHQWLRQ KHUH VRPH ZHUH UHIHUUHG WR PRUH WKDQ RWKHUV DQG VR WKHVH DUH QRWHG   ,QGHILQLQJDUFKDLFWHUPV:HEVWHU·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

/DWLQ3ODFH1DPHVDW KWWSZZZOLEE\XHGXa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·V+LVWRU\RI0DJLFDQG([SHULPHQWDO6FLHQFHZDVDOVRUHIHUUHG WRIUHTXHQWO\    .LP)DUQHOO-DQXDU\         

7KLVHGLWLRQLVFRS\ULJKW.LP)DUQHOO ,QEX\LQJWKLVHERRN\RXKDYHSDLGIRURQHFRS\RQO\ ,IVRPHRQHKDVFRSLHGWKLVHERRNDQGVHQWLWWR\RXSOHDVHFRQWDFW.LP )DUQHOODW5DPHVH\#NLPIDUQHOOFRXNWRPDNH\RXUSD\PHQW  



ASTROLOGY FULLY VINDICATED AND DEFENDED FROM ALL

56

CHAP I: Proving Astrology to be one of the Liberal Sciences.

56

CHAP II: That Astrology and Astronomy are one and the same Science, and that they were ever so received by the Ancients. 58 CHAP III: Containing the Excellency and Nobility of the Science of Astrology, as also its Antiquity, and the admirable power and virtue of the Heavens. 62 CHAP IV: That the Heavens and Stars have influence on inferior and Elementary things, Proved by Scripture or the word of God; And acknowledged by Philosophers, and the learned in former ages. 63 CHAP V: Showing that observation may be made of the Stars motions, in answer to those that hold it impossible for any man in his days to observe the particular configurations of every Planet, with the fixed Stars, and with one another; as also that thereby we may discern their influence if we have any capacity. 66 CHAP VI: That the variation of the Heavens from their places wherein they wherein Ptolemy’s time, or at the first Creation, causes no erring in Astrological Judgements.

68

CHAP VII: Showing the powerful influence of the Stars and Planets, and how far we are to have regard to the fixed Stars. 71 CHAP VIII: Showing the Influence of the Heavens on Inferior and Elementary Bodies. 79 CHAP IX: Showing that the Influences of the Heavens and redominancy of the stars in every Climate, is the cause of the several Laws and Customs of the People therein. 82 CHAP X: Containing the resolution of the main Objections against this divine Science. 85 CHAP XI: Containing an Introduction to the Vindication of my Lux Veritatis, from the aspersions of Doctor Homes and his second, with the first Reason why I account neither of them worth our of my notice. 93 CHAP XIII: Containing the fourth Reason, and Vindication from some of their abuses, and untruths. 97 CHAP XV: Showing that the Text in Psal. 19.v.3. alleged by the Author to prove the stars have influence, is no wise refelled. 106 CHAP XVI: Proving their Reply to Job 38.31. showing the stars to have influence, to be frivolous and of no effect. 107 CHAP XVII: Proving their Reply to Judges 5.20. weak, and nowise available to their intent or purpose. 109 CHAP XVIII: That the stars are proved both signs and causes by the word of God; and the Art lawful, notwithstanding all their malice. 110 CHAP XIX: Proving Astrology to be warranted by Councils, in spite of their Rabble.

112

CHAP XX: Containing the power and subject of Astrology, and how far the Author vindicates it.

113

 

AN INTRODUCTION TO THE JUDGEMENT OF THE STARS WHEREIN THE WHOLE ART OF ASTROLOGY

116

THE RIGHT HONOURABLE AND Truly Noble both for Learning and Parts, William Seymour, 117

To the Reader.

119

AN INTRODUCTION TO THE JUDGEMENT OF THE STARS.

120

CHAP I: Of the Names, and Number of the Planets, with their several Characters, and of the significations and nature of Saturn 120 CHAP II: Of the Significations and Nature of Jupiter

126

CHAP III: Of the Nature and Significations of MARS.

132

CHAP IV: Of the Nature and Significations of the SUN.

137

CHAP V: Of the Nature and Significations of VENUS.

144

CHAP VI: Of the Nature and Significations of MERCURY.

149

CHAP VII: Of the Nature and Significations of the Moon.

153

CHAP VIII: Of the Essential Dignities of the Planets.

157

CHAP IX : Showing the Use of these former dignities, & c.

160

CHAP X: Of the Houses of the Planets, and wherefore they were so distributed.

161

CHAP XI: Of the Exaltations and Fall of the Planets, and wherefore they were so constituted.

162

CHAP XII: Of the Triplicities of the Planets, and the Reasons why they were so appointed. 163 CHAP. XIII: Of the Terms of the Planets, wherefore so called, and so assigned to every of the five Planets. 164 CHAP XIV: Showing the use which is to be made of the Terms.

166

CHAP XV: Demonstrating the Use, Nature and Reasons of the Faces of the Planets.

168

CHAP XVI: Of the Joys of the Planets.

172

CHAP XVII : Of the Head and Tail of the Dragon.

172

CHAP XVIII: Of the Antiscions and Contrantiscions of the Planets.

173

CHAP XIX: Showing the Reasons of the names of the seven Planets and their Characters. 174 CHAP XX: Of the number of the Heavens and Spheres, their places, order and motions. 175

 

CHAP XXI: Of the Circles of Heaven, the Zodiac, and the divisions thereof.

176

CHAP XXII: Of the twelve Celestial Signs, and their manifold divisions.

178

CHAP XXIII: Showing the use which is to be made of the former Chapter.

180

CHAP XXIV: Demonstrating the Reasons of the names of the twelve signs; and why there are just twelve, and neither more nor less. 181 CHAP XXV: Showing the Reasons why the signs are reckoned from Aries, and not from any other sign; as also why they are not placed according to the order of the four Elements. 183 CHAP XXVI: Of the Nature, Signification and Equality of the Signs; and first of Aries.186 Of Taurus. 187 Of Gemini. 189 Of Cancer. 190 Of Leo 191 Of Virgo. 193 Of Libra. 194 Of Scorpio. 196 Of Sagittarius. 197 Of Capricorn. 199 Of Aquarius. Of Pisces.

200 201

CHAP XXVII: Of the Aspects of the Planets and Signs, their Names, Characters and Natures, and wherefore they were so named and charactered 203 CHAP XXVIII: Of the fixed Stars in the Zodiac; wherefore they are called fixed, their number, particular names, natures, magnitudes, latitudes and longitudes; and first of those in Aries, as they are delivered by the most learned in this Art. 205 The Names of the Stars

206

CHAP XXIX: Of the Fixed-stars in Taurus, their number, names, nature, magnitude, latitude, and longitude. 207 CHAP XXX: Of the Fixed-Stars in Gemini, their Number, Names, Nature, Magnitude, Latitude and Longitude. 210 CHAP XXXI: Of the fixed Stars in Cancer, their Number, Names, Nature, Magnitude, Latitude and Longitude 211 CHAP XXXII: Of the fixed Stars in Leo, their Number, Names, Nature, Magnitude, Latitude and Longitude. 212 CHAP XXXIII: Of the fixed Stars in Virgo, their Number, Names, Nature, Magnitude, Latitude and Longitude. 214 CHAP XXXIV: Of the fixed Stars in Libra, their Names, Number, Nature, Magnitude, Longitude and Latitude. 215 CHAP XXXV: Of the fixed Stars in Scorpio, their Number, Names, Natures, Magnitude, Latitude and Longitude. 216 CHAP XXXVI: Of the fixed Stars in Sagittarius, their Number, Names, Nature, Magnitude, Latitude and Longitude.

 

218

CHAP XXVII: Of the fixed Stars in Capricorn, their Number, Names, Nature, Magnitude, Latitude and Longitude. 220 CHAP XXXVII: Of the fixed Stars in Aquarius, their Number, Names, Nature, Magnitude, Latitude and Longitude. 221 CHAP XXXIX: Of the Fixed stars in Pisces, their nature, number, names, magnitude, latitude and longitude. 223 CHAP XL: Showing the use of all the former Tables

224

CHAP XII: Of the significations of the 12 Houses of Heaven, and wherefore they have such signification. 225 CHAP XLII : Of the division of the Houses into twelve equal parts.

229

CHAP XMII: Containing some Terms of Art very necessary to be known: as also Instructions how to erect a Figure of Heaven.

230

AN INTRODUCTION TO ELECTIONS

236

SECTION. I. Comprehending an Introduction to Elections, or necessary Instructions for electing any manner of work, by the secret operations of the Heavens, by the nature of the Signs, Planets, and Aspects of the Moon, &c. 242 CHAP I: Containing some necessary Instructions to the judging of Elections. 242 CHAP II: Of the signs, and their significations in Elections, and of the hindrances of the Moon, being a farther instruction to the judging of Elections. 249 CHAP Ill: Showing Elections by the Aspects of the Moon to the other six Planets, and by her Mansions. 252 SECTION. II. Containing Rules for Electing such matters as appertain to the signification of the first House of Heaven. 256 CHAP I: Containing necessary Rules for putting Children to Nurse, to School; or to a Trade, and of Weaning of Children. 256 CHAP II: Containing the Rules of Elections in the cutting of Hair. 258 CHAP III: Of cutting the Nails of the hands or feet, as also Corns. 258 SECTION III. Of Rules for Electing matters appertaining to the second House. 259 CHAP I: Of receiving and borrowing Money. 259 CHAP II: Containing other Rules concerning borrowing and lending of money. 260 CHAP III: Of buying to profit again by the sale thereof. 261 CHAP IV: Of selling to advantage. 262 CHAP V: Further concerning Buying and Selling in the ordinary course of the World 262 CHAP VI: Of buying clothing, or putting on of Apparel. 263 CHAP VII: Of flitting, or removing from one place to another. 264 CHAP VIII: Containing Rules of Electing any Work in the Art of Distillation, or Alchemy. 264 SECTION IV. Comprehending Rules, in Electing such matters as appertain to the signification of the third House. CHAP I: Of short Journeys, and their Elections. CHAP II: Of making of Friendship between Brethren, or any two at variance. CHAP III: Of applying the mind or study to Divine matters or contemplations.

266 266 266 267

SECTION V. Containing Rules of Elections, appertaining to the fourth House. CHAP I: Of building Houses. CHAP II: Of Building of Castles and Cities. CHAP III: Of Building of Churches. CHAP IV: Of Building or Erecting of Mills.

268 268 269 271 272

 

CHAP V: Of pulling down or destroying of Houses, or any Fabric whatsoever. 272 CHAP VI: Containing rules of Elections in buying of Land, Houses or Heritages. 273 CHAP VII: Of Buying of Land, or ground for Husbandry, and not to build on. 274 CHAP. VIII: Of bringing of Water to a house, either by Conduit, Pipe or Pump; and of digging of Wells. 275 CHAP IX: Of Tillage, or Manuring of the Ground 276 CHAP X: Of Renting or Hiring, and Letting of Houses, Land or Fruit, or any other thing to be Let or Hired 276 CHAP XI: of Planting of Trees or Grassing. 277 CHAP XII : Of Sowing of Seeds in the ground 278 CHAP XIII : Of riding Houses or places from evil Spirits. 279 SECTION VI : Containing Rules for Electing a time for any Work, or thing appertaining to the fifth House. 279 CHAP I : Showing a fit time for getting of Boys or Girls. 280 CHAP II : Of Delivering a dead Child. 281 CHAP III : Of Christening or Circumcising of Children. 282 CHAP IV : Of giving and receiving of Gifts or Presents. 283 CHAP V : Containing Rules for electing a time for putting on of Apparel. 284 CHAP VI : Of Feasting or eating of meat. 285 CHAP VII : Of Drinking of Wine and other Drinks. 286 CHAP VIII : Of writing of Letters, or anything else of Ingenuity. 287 CHAP IX : Of making Odoriferous smells and unguents. 288 CHAP X : Of sending Ambassadors or Messengers. 288 SECTION VII : Of Elections appertaining to the sixth House. 289 CHAP I : Of the true Knowledge of the Crisis or Critical and Judicial Days, very useful for those that study Physic. 289 CHAP II : Of Applying Medicines generally to all the parts of the body of Man. 293 CHAP III : Of the Administration of Remedies to the Diseases of the Head 294 CHAP IV : Of Applying remedies to the eyes, and preparatives in general. 295 CHAP V : Of Applying remedies to the Nose. 295 CHAP VI : Of injecting of Clisters, &c. and Stopping of Rheums or Fluxes. 296 CHAP VII : Of the administration of gargarisms, or sneezings, and such like. 296 CHAP VIII : Of giving of Vomits. 296 CHAP IX : Of administering Purges and Physic laxative. 297 CHAP X : Of Bathing, and Electing a time therefore. 302 CHAP XI : Of Electing a time for using Surgery. 302 CHAP XII : Of Electing a time for Phlebotomy or Blood-letting, of applying also Ventosies. 303 CHAP. XIII: Of the Physicians going to the Patient. 305 CHAP XIV : Of Hiring of Servants. 305 CHAP XV : Of buying of Birds, and letting them fly to return again. 306 CHAP XVI : Of buying four footed beasts. 307 CHAP XVII : Of bringing up Dogs, or Taming of small Cattle 308 SECTION VIII : Containing Elections appertaining to the seventh House. 309 CHAP I : Of Elections appertaining to the signification of the seventh house, and touching Marriage. 309 CHAP II : Of Venereal sports. 313 CHAP III : Of Partnership, or Agreements, or things between two. 314 CHAP IV : Of going to War, or beginning of Differences and Duels, Quarrels, Law-Suits, Controversies, and the like. 315 CHAP V : Of making of Peace, suppressing or encountering of Rebels, and storming of Castles and Town. 319 CHAP VI : Of buying of Arms, and preparing of Instruments of War, and Ships or Galleys. 321 CHAP. VII: Of seeking of Fugitives, and examining of Thieves and Malefactors. 322 CHAP VIII : To know the Subject and scope of the Whisperings or Clandestine Practices of any two, and of playing at Chess (or any other sitting Game) to win. 323  

CHAP IX : Of Hunting, Fowling and Fishing.

326

SECTION IX : Containing Elections appertaining to the signification of the eighth House. 328 CHAP I : Of making of Wills. 328 CHAP II : Of the Heritages of the Dead. 328 SECTION X : Containing the Elections of the ninth House of Heaven. 329 CHAP I : Of the returning of such as are absent, and of going of journeys, and entering into anyplace. 329 CHAP II : Of building of Ships and tallies, and of launching them, and of voyaging by Sea. 333 CHAP III : Of learning of Sciences, and of Singing and Music. 335 SECTION XI : Containing Elections appertaining to the signification of the tenth House. 337 CHAP I : Of electing of Kings and Nobles, and of their installing and beginning their Rule or Government. 337 CHAP II : Of obtaining favour of Kings and great men, Justice on Enemies, and Pardons; also of going of Progress with the King, or any other Grandee. 338 CHAP III : Of learning any Art or Occupation. 339 SECTION XII : Containing such Elections as are under the signification of the eleventh House of Heaven. 340 CHAP I : Of accomplishing anything hoped for, and of gaining a good repute, and the love of friends 340 CHAP II : Of obtaining of Promises and Requests. 341 SECTION XIII : Comprehending the Elections of the Twelfth House. CHAP I : Of Freeing of Prisoners and Captives. CHAP II : Of Buying and Riding of Horses.

341 341 342

ASTROLOGIA MUNDA

343

To the Studious Reader.

347

ASTROLOGIA MUNDA

349

SECTION I : Containing the Ground-work of Revolutions, considerations before Judgement, and the true Significators of such things as are necessary to be judged of in this manner of Work 349 CHAP I: Showing the Ground work on which Astrological Judgements for the judging of Revolutions are to be built, and how many Schemes or Figures of Heaven ought to be erected for this Work. 350 CHAP II : Containing some necessary considerations before Judgement. 352 CHAP III : Showing which are the Significators of the King, People, their Enemies and Assistants, in any Revolution of the years of the World. 354 CHAP IV : Of the Significators of Rich and Noblemen, the Kings Standard or Armour-Bearer; also Clergy-men, and of Students, Merchants, Lawyers, and Women in general: also Fryers and Monks; and these according to the significations of the Planets. 356 SECTION II : Showing the state and condition of the King or Rulers, and their continuation and durability in any Revolution; as also the condition of the People from the position and fortitudes of their significators. Also how to know the Lord of the year in any Revolution of the years of the World, and the significations thereof in the twelve Houses, Signs and Aspects of the Planets; also of the significations of the Head and Tail of the Dragon in any of the twelve Houses. 358  

CHAP I : Of the state or condition of the King or chief Rulers and People in any Annual Revolution. 358 CHAP II : Teaching how to judge of the permanency or durability of Kings, or such as are in Authority by any Revolution. 362 CHAP III : Showing the state and condition of the Common People in any Region, by any Revolution. 364 CHAP IV : How to know that Planet which is Lord of the Year in any Annual Revolution of the Years of the World. 370 CHAP V : Of the Significations of the seven Celestial Planets, when any of them is Lord of the Year, whether Fortunated or Impedited, and of the Aspects o f the other Planets with them. 374 CHAP VI : Containing the true Significations of the Planet Saturn as he is in any Annual Revolution accidentally placed in any of the Twelve Houses of Heaven, whether he be Lord of the Year or no. 378 CHAP VII : Of the Signification of Jupiter as he is accidentally placed in any of the Twelve Houses of Heaven in any Annual Revolution, whether he be Lord of the Year or no. 380 CHAP VIII : Containing the Significations of Mars in the Twelve Houses of Heaven in any annual Revolution, whether he be Lord of the Year or no. 383 CHAP IX : Showing the Significations of the Sun in the Twelve Houses of Heaven in any Annual Revolution, whether he be Lord of the Year or no. 384 CHAP X : Showing the Signification of Venus in the Twelve Houses of Heaven in any Annual Revolution, whether she be Lady of the Year or no. 386 CHAP XI : Of the Significations of Mercury in the Twelve Houses of Heaven in any Annual Revolution, whether he be Lord of the Year or no. 388 CHAP XII : Of the significations of the Moon in the Twelve Houses of Heaven in any Annual Revolution, whether She be Lady of the Year or no. 389 CHAP XIII : Containing the significations of the Head and Tail of the Dragon in the Twelve Houses of Heaven in any Annual Revolution of the Years of the World. 392 CHAP XIV : Showing the Significations of the Planets in any of the Triplicities, when any of them is Lord of the Year in any Annual Revolution of the years of the World. 394 CHAP XV : Demonstrating the Significations of Saturn when he is Lord of the Year in any of the twelve Signs. 395 CHAP. XVI. Showing the Significations of Jupiter, when he is Lord of the year in any of the Twelve Signs. 401 CHAP XVII : Showing the Significations of Mars, when he is Lord of the year in any of the twelve Signs. 404 CHAP XVIII : Containing the Accidents signified by the Sun when he is Lord of the year in any of the twelve Signs. 411 CHAP XIX : Of the things signified by Venus when she is Lady of the year in any of the Twelve Signs. 412 CHAP XX : Of the Significations of Mercury when he is Lord of the Year in any of the Twelve Signs. 416 CHAP XXI : Containing the Significations of the Moon, when she is Lady of the Year in any of the twelve Signs. 419 CHAP XXII : Showing what is signified by the Head and Tail of the Dragon, as they are placed in any of the Twelve Signs in any Revolution. 420 SECTION III : Containing some other necessary Instructions for the judging of Events portended by any Revolution of the Years of the World; Also showing how to judge of such Years as signify fertility, sterility, wars, peace, health or sickness, alteration of and in the air, and of all other things foreknown by the position of the Heavens at the Ingress of the Sun into the first point of Aries 423 CHAP I : Showing the Significations of the Planets in their Exaltations, and also in Conjunction, Square or Opposition of Saturn or Mars at that time in any Revolution. 423 CHAP II : Of the Significations of the Planets, and Dragons Head and Tail, as also Blazing-Stars, when they are (in any Revolution) exalted one above another. 426 CHAP III : Containing Considerations from the Sun and Moon when the Revolution is either Diurnal or Nocturnal, also when the Revolution happens at Sun-setting and break of day; from the Lord of the hour, Part of Fortune, the indisposition of Saturn and Mars, from their Conjunction with the Dragons Head and Tail in any Annual Revolution. 430  

CHAP IV : Teaching how to judge of the evil of any year, the nature thereof, and when the year is most likely to be both turbulent, obnoxious, and unfortunate, also what is portended in any Revolution when one Planet transfers his light and nature to another. 436 CHAP V : Showing how to judge of health or sickness in any year. 438 CHAP VI : Of Wars or Peace. 439 CHAP VII : Of Fertility and Sterility. 443 CHAP. VIII. Teaching how to know the price of any thing in any Year. 444 CHAP IX : Containing some Instructions touching the alteration of the Air and change of weather in any Year. 448 CHAP. X. Showing how to judge of the weather by the Aspects of the Moon to the other Planets, and by the several Aspects of the Planets amongst themselves. 452 CHAP XI : Demonstrating the alteration of the Air by the Combustion, Orientality and Occidentality of the Planets in every of the 12 Signs. 454 CHAP XII : Containing further Instructions touching the alteration of the Air, from the application of the Moon to the other Planets, having separated from the Conjunction or Opposition of the Sun. 457 CHAP XIII : Teaching by other Rules how to judge of the alteration of the Air, and to know when Rain is to be expected. 460 CHAP XIV : Showing Haly his judgement on Weather and the alteration of the Air. 463 CHAP. XV. Showing how to judge of Weather from common Observation of the rising and setting of the Sun, colour of the Moon, appearance of the Rain-bow, Comets, Clouds, Brightness of the fixed Stars, also by the prime day, and from the time of the day wherein Thunder happens. 467 CHAP XVI : Demonstrating the Natural cause of many Suns, of the Rainbow, Rain, Hail, Frost, Snow, Dew, Wind, Earthquakes, Comets, Thunders, Lightnings and the cause of the Sun and the Moons Eclipse. 469 CHAP XVII : Of the Signification of the most notable fixed Stars both fortunate and unfortunate in any of the twelve Houses in Revolutions of the Years of the World 472 SECTION IV : Teaching how to judge of the Natural Mutations and Accidents of this Elementary World by the appearance of Eclipses, Comets, great Conjunctions and Blazing Stars. 475 CHAP I : Containing Ptolemy’s method in judging Eclipses, and how to know the Regions to which the Effects belong. 478 CHAP II : Showing the time when the Effects of any Eclipse shall' begin and how long continue. 478 CHAP III : Of the kinds of the Events of any Eclipse. 480 CHAP IV : Of the quality of the Events of any Eclipse, whether Good or Evil. 482 CHAP V : Of the Sun and Moon Eclipsed in any Decanate or Face of the twelve Celestial Signs. 485 CHAP VI : Of Comets and Blazing-Stars, what they are, the many sorts thereof, their Portences, and how long they appear at any time. 492 CHAP VII : Showing the Physical reasons of the horrid and terrible portences of Comets and Blazing-Stars. 495 CHAP VIII : Showing some other names of Comets or Blazing-Stars, and their Portences. 496 CHAP IX : Of the signification of Comets and Blazing-Stars appropriated to the seven Planets. 498 CHAP X : Showing the Significations of Comets, when they appear in any of the twelve Signs of Heaven. 500 CHAP XI : Of great Conjunctions, their Number, and how to judge of their Effects. 504 CHAP XII : Of the Conjunctions of the Superiors. 506 CHAP XIII : Of the mean and lesser Conjunctions, and their Effects. 507 CHAP XIV : Of the Conjunction of the Planets in the twelve Signs according to Hermes. 509 CHAP XV: Showing how to judge of the General Accidents of the World by the Falling of New-Years Day. 512

The Post-Script.

514 



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

  /LJKWRIWUXWK   1DWKDQLHO+RPHVZDVWKHDXWKRURI 'DHPRQRORJLHDQG7KHRORJLH GHVFULEHGDV ´3ODLQGHDOLQJRUWKHFDXVHDQGFXUHRIWKHSUHVHQWHYLOVRIWKHWLPHVLQDVHUPRQ 8SRQWKH/RUG V'D\DIWHUWKHHFOLSVHXSRQRFFDVLRQZKHUHRIVRPHWKLQJZDV VSRNHQWRXFKLQJDVWURORJ\«7KHODWHHFOLSVHXQFODVSHGRUWKHPLVWDNHQVWDU JD]HUV XQPDVNHGZKHUHLQLVPDQLIHVWHGVHYHQVHYHUDOOUHDVRQVZKHUHE\WKHVHDVWURORJHUV KDYHGHFHLYHGWKHSHRSOHµ5 DPHVH\UHVSRQGHGWRWKLVZRUNE\SXEOLVKLQJ /X[ 9HULWDWLVLQZKLFKKHFODLPHG´&KULVWLDQMXGLFLDODVWURORJ\LV YLQGLFDWHGDQG GHPRQRORJ\FRQIXWHGµ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

7KH)RXUWK%\DPRVWHDV\,QWURGXFWLRQWHDFKHVE\5HYROXWLRQVRIWKH
  8VXDOO\WDNHQDVV\QRQ\PIRUFRPHWEXWLQWKLVFRQWH[WOLNHO\WRPHDQQRYDRU VXSHUQRYD   *HQWOHPDQ   7KHVWDUVUXOHPDQNLQGEXW*RGUXOHVWKHVWDUV7KHFRPSOHWHTXRWDWLRQLV´7LPHV FKDQJHDQGZHFKDQJHZLWKWKH P7KHVWDUVUXOHPHQEXW*RGUXOHVWKHVWDUVµ >/DW7HPSRUDPXWDQWXUQRVHWPXWDPXULQLOOLV $VWUDUHJXQWKRPLQHVVHGUHJLW DVWUD'HXV@IURP +DUPRQLD0DFURFRVPLFD E\&KULVWRSK&HOODULXV.HOOHU WKH *HUPDQJHRJUDSKHU ²     

7R7KH,OOXVWULRXVDQG+LJKERUQ35,1&(

 -$0(6678$57

Duke of 5LFKPRQGand /HQQR[Earl of 0DUFK Lord $XEXJQ\'DUQO\7DUEROWRQand 0HWKYHQ Baron of /HLJKWRQ%URPVZROGand St. $QGUHZV and Knight of the most Noble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·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

  -DPHV,,RI(QJODQG -DPHV9,, RI6FRWODQG  -DPHV6WXDUW 2FWREHU  6HSWHPEHU 7KHWKLUGVRQRI.LQJ&KDUOHV,-DPHVZDVFUHDWHG'XNHRI
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

 'LH-DQXDU\ 0</25' 7KDWLVUHDOO\
:LOOLDP5DPHVH\

 

7R7KH-XGLFLRXV5HDGHU 

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ex (illegible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
  7KH7HQXUHRIWKHILUVW%RRN   6DUFDVWLFUHPDUNVVXEWOHVODQGHURXVDQGIDOVHDOOHJDWLRQV   7KHVXEMHFWDQGVFRSHRIWKHVHFRQG7UHDWLVH   2QHZKRGHFODUHVWKLQJVWREHXQWUXHRULQYDOLGFRQWUDGLFWV   6RPHRQHZKRDOZ D\VILQGVIDXOW   2IWKHWKLUG  2IWKHIRXUWK   

&RXQWULHV .LQJGRPV 3URYLQFHV DQG &LWLHV WKH $OWHUDWLRQV RI .LQJGRPV DQG (PSLUHV /DZV DQG &XVWRPV FDXVH RI 6FDUFLW\ 3OHQW\ :DUV 3HDFH +HDOWK 6LFNQHVV $OWHUDWLRQ RI WKH $LU DQG WR EH VKRUW RI DOO WKLQJV DSSHUWDLQLQJLQD1DWXUDOZD\WRWKHOLIHRI0DQZKHUHE\LVPDQLIHVWWKH LQILQLWH :LVGRP RI WKH *UHDW &UHDWRU DQG WKH ,QQRFHQFH /HJDOLW\ DQG 3XULW\ RI WKH $UW GHPRQVWUDWHG DQG SURYHG E\ GHPRQVWUDWLRQ RI WKH LQHYLWDEOH (YHQWV VR ORQJ DV *RG E\ KLV 3URYLGHQWLDO &DUHXSKROGV WKH 2UGHU DQG &RXUVH RI 1DWXUH LQYLRODWH DQG XQFKDQJHG $OVR WKH 6WXGHQWV WKHUHRIFRQVHTXHQWO\SURYHGUDWKHU'LYLQHVWKHQ&RQMXUHUVRU3UDFWLWLRQHUV RIZKDWLVXQODZIXOIRUWKHUHE\PD\DPDQHDVLO\MXGJHRIDQ\5HYROXWLRQ (FOLSVH FRUDQ\SDUWRIWKHPWRWKHHQGRIWKH:RUOGE\EHLQJWKHUHE\ LQVWUXFWHG RI WKH 1DWXUH DQG 6LJQLILFDWLRQ RIHYHU\3ODQHWLQHYHU\+RXVH DQG 6LJQ RI WKH +HDYHQV DQG $VSHFWV RQH DPRQJVW DQRWKHU DQG RI WKHLU HIIHFWVZKHQ/RUGVRIWKH\HDUDQGZHOORULOOORFDWHG F   ,Q ZKLFK %RRN LI \RX EH ZHOO LQVWUXFWHG DQG SHUIHFWHG \RX KDYH WKH ZKROH ERG\ RI $VWURORJ\ IRU QHLWKHU LV WKH -XGJHPHQW RI +RUDU\ 4XHVWLRQV2UGLQDU\(OHFWLRQV&KDUDFWHU$VWURORJ\1DWLYLWLHVRUDQ\RWKHU WREHHVWHHPHGLQFRPSDULVRQWKHUHRIEXWDVWULIOHVXQFHUWDLQWLHVIDOODFLHV LOOHJDOLWLHVDQGDEXVHVRIWKHSXULW\RIWKH$UW   )RU WUXO\ PD\ , VD\ WKH WUXWK VXFK OLNH 3UDFWLVHV RI PHQ XQDFTXDLQWHG ZLWK WKH GHSWK RI WKLV PRVW KHDYHQO\ 6FLHQFH E\ WKHLU IUHTXHQW IDLOLQJV KDYH EHHQ WKH PDLQ DQG RQO\ FDXVH RI VR PDQ\ %RRNV DJDLQVW $VWURORJ\ ZKLFK LV LQ LW VHOI VR SXUH DQG XQGHILOHG WKDW WKH PRVW VFUXWLQRXV:LWDOLYHFDQQRWKDYHRQH:RUGIRUWKH&RQGHPQDWLRQWKHUHRI IRUDPRQJVWWKH/HDUQHGWKHDEXVHQHYHUWDNHVDZD\WKHXVHRIDWKLQJIRU WKHQ WKHUHZRXOGEHQRWKLQJXQGHUWKH+HDYHQV/DZIXOIRUZHVHHHYHQ WKH 3XUHVW DQG PRVW /DZIXO $UWV 6FLHQFHV DQG WKLQJV PRVW DEXVHG DQG PRVWDSWWREHFRXQWHUIHLWHG  $V IRU LQVWDQFH LV WKHUH DQ\ WKLQJ LQ WKH :RUOG PRUH /DZIXOWKHQ 'LYLQLW\ LQ LWV SXULW\" DQG LV WKHUH DQ\ WKLQJ PRUH KDUG WR ILQG RU PRUH FRPPRQO\DEXVHGE\IDOVH7HQHWV6FKLVPV6HFWVDQG+HUHVLHV"$QG\HWLI XSRQWKHVHJURXQGVRURXWRIWKHVHFRQVLGHUDWLRQVDPDQVKRXOGSRVLWLYHO\ FRQFOXGHQRYHULW\LQ5HOLJLRQRUWUXWKLQ'LYLQLW\\RXZRXOGVD\WKDWPDQ ZHUHLQDPRVWJURVV(UURUDQGYHU\,PSLRXV7KHQ,VD\OHWQRPDQWKDWLV QRWZLOOLQJWRIRUIHLWERWKKLV5HDVRQ'LVFUHWLRQDQG8QGHUVWDQGLQJEHVR ZHDN DV ZLWKRXW DQ DVVXUDQFH RI WKH 1DWXUH DQG 4XDOLW\ RI WKLV PRVW /DZIXO $UW ZKLFK , KHUH XQGHUWDNH WR 9LQGLFDWHDQGGHOLYHUWRWKH:RUOG FRQFOXGH RXJKW DJDLQVW LW HLWKHU E\ 7UDGLWLRQ RUWKHFRPPRQ9RLFHRIWKH :RUOG ERWK ZKLFK EHLQJ NQRZQ WR WKH -XGLFLRXV WR EH YHU\ IDOVH DQG WR KROGQRWKLQJRI&UHGLWLQWKHP   )RUDVLWZDVPHUHO\D1DWXUDOLQFOLQDWLRQZLWKLQPHWRWKH7UXWK DQGWKHSURSDJDWLRQWKHUHRIVRIDUDVLQPHOLHVWKDWILUVWGUHZP\3HQWR 3DSHU VR LV LW WKH VDPH ZKLFK PDNHVPHQRZWKLVRQFHPRUHDSSHDUDQG   7KH%RG\RI$VWURORJ\LQLWV3XULW\   7KH5HDVRQZK\VRPDQ\%RRNVDUH3ULQWHGDJDLQVW$VWURORJ\   7KH$XWKRUVILUVWLQGXFHPHQWWRYLQGLFDWH$VWURORJ\   

FRQWHQWP\VHOIWRLQFXUDOOWKH&XUULVK6QDUOV%DUNLQJVDQG%DZOLQJVRIWKH HQYLRXV DQG XQJUDWHIXO DQG WKH VDPH LW LVDOVRWKDWHPEROGHQVPHQRWWR IHDUQRUEHGDXQWHGDWWKHPLWLVQRQHZWKLQJZLWKPHWRNQRZWKDW'RJV ZLOO EDUN DW 6WUDQJHUV DQG VXFK DV DUH QRW RI WKHLU NLQG *HQWOHPHQ ZLOO VKRZ WKHPVHOYHV ZKDW WKH\ DUH DQG ORYH HDFK RWKHU EXW ZKDW VKDOO , H[SHFWRI*DOODQWU\IURP&REEOHUV+D\PDNHUV7DLORUVDQG6HUYLQJPHQ"  7KH ILUVW RFFDVLRQ RIP\:ULWLQJLQWKH9LQGLFDWLRQRIWKLV6FLHQFH ZDVWKHDSSHDUDQFHRIDUDLOLQJ3DPSKOHWDJDLQVWLWZLWKRXWDQ\IHDURUZLW WRZKRP,UHWXUQHGD5HSO\LQWKH\HDULWLVDVKRUW7UDFWRIWZR6KHHWV ZKDWDQGZKRWKH$XWKRUWKHUHRIZDV\RXPD\VHHLQWKHODWWHUSDUWRIP\ /X[9HULWDWLV3ULQWHGIRU,KROGKLPQRWZRUWK\WKHLQVHUWLQJLQWKHVH P\/DERXUV   7KHVHFRQGWLPHRIP\:ULWLQJZDVRFFDVLRQHGWKURXJKWKHZHDN $UJXPHQWV IODVKHV DQG VXSSRVLWLRQV RI 'RFWRU +RPHV ZKR EHLQJ D 6FKRODU  VKRXOG PH WKLQNV  KDYH KDG PRUH XQGHUVWDQGLQJ WKHQ WR FRQGHPQWKLVZRUWK\$UWXQGHUWKHQRWLRQRI:LWFKFUDIW6RUFHU\DQGVXFK OLNH LOOHJDOLWLHV RU GLVFUHWLRQ WKHQ WR UDLO GRZQ RQH RI WKH FKLHI RI WKH /LEHUDO6FLHQFHVPHUHO\IRUWKHDEXVHVWKHUHRI   7KHWKLUGZDVWKDW,PLJKWPDQLIHVWWKHLQQRFHQFHRIWKLV6FLHQFH DQGWKHOHJDOLW\YHULW\H[FHOOHQF\DQGYDOLGLW\WKHUHRILIQRWDEXVHGDQG WKHUHIRUH ZKR VR VKDOO ZDULO\ SHUXVH WKDW'LVFRXUVHRIPLQHHQWLWOHG9R[ 6WHOODUXP RU 7KH 9RLFH RI WKH 67$56 3ULQWHG LQ WKH \HDU  VKDOO EH VDWLVILHGWKDW*RGGRHVZRUNE\&DXVHVDQGWKDWKHKDVRUGDLQHGWKH6WDUV DQG &HOHVWLDO 3ODQHWV WR EH LPPHGLDWH &DXVHV QH[W XQWR +LP RI DOO RXU 1DWXUDO HQMR\PHQWV DQG FDVXDOWLHV YL] )HUWLOLW\ 6WHULOLW\ :DUV 3HDFH +HDOWK 6LFNQHVV $OWHUDWLRQV RI WKH $LU ,QXQGDWLRQV (DUWKTXDNHV 7KXQGHUV/LJKWQLQJV6WRUPV7HPSHVWV&RPPRWLRQV7URXEOHV$OWHUDWLRQ RI 6WDWHV .LQJGRPV /DZV &XVWRPV DQG RI DOO WKLQJV LQ D 1DWXUDO ZD\ LQFLGHQWWRDQGLQWKLV(OHPHQWDU\:RUOGIRUWKHUHLVQRWKLQJPRUHFHUWDLQ WKHQWKDWWKH3RUWHQFLHVRIWKH6WDUVVRIDUDVFRQGXFHVWRWKHJRYHUQPHQW RIWKH1DWXUDODQG(OHPHQWDU\:RUOGDQGWKHWKLQJVWKHUHLQFRPSRVHGRI WKH VDPH PDWWHU DQG VWXII  VKDOO SURYH WUXH DQG HIIHFWXDO XQOHVV *RG GR ZRUND0LUDFOHDQGSHUYHUWWKH2UGHUDQG*RYHUQPHQWRIWKH:RUOG F  ,GRQRWGHQ\WKHRPQLSRWHQWSRZHURI*RGWKDWKHLVDEOHWRDOWHU WKH FRXUVH RI 1DWXUH KH WKDW PDGH WKHP ZLWK DQG E\ WKH ZRUG RI KLV PRXWK FDQ TXHVWLRQOHVV  E\ WKH VDPH ZRUG QRW RQO\ DOWHU WKHLU PRWLRQV DQGSHUYHUWWKHLUHIIHFWVEXWDOVRDQQLKLODWHWKHPDJDLQEXWDVWKLVLVQRWE\ PH GHQLHG VR FDQQRW WKH 2EMHFWRUV DJDLQVW WKLV 6FLHQFH EXW FRQIHVV WKDW *RGLVWKH*RGRI2UGHUDQGZRUNVLQRUGHUDQGQRWSUHSRVWHURXVO\IRU EHFDXVHKHFDQDOWHUWKHFRXUVHDQGLQIOXHQFHRIWKH6WDUVDUJXHVQRWDWDOO WKDWWKHUHIRUHKHZLOOIRUZK\VKRXOGWKLVEHDQ\$UJXPHQWWRXVVLQFHZH UHDGEXWRIWKUHHWLPHVKHKDVZURXJKWLQWKLVPDQQHUVLQFHWKH&UHDWLRQRI   7KHVHFRQGRFFDVLRQ   7KHWKLUGRFFDVLRQ   

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

  %RRNRI-RVKXD7KHQVSDNH-RVKXDWRWKH/25'LQWKHGD\ZKHQWKH/25' GHOLYHUHGXSWKH$PRULWHVEHIRUHWKHFKLOGUHQRI,VUDHODQGKHVDLGLQWKHVLJKWRI ,VUDHO6XQVWDQGWKRXVWLOOXSRQ*LEHRQDQGWKRX0RRQLQWKHYDOOH\RI$M DORQ $QGWKHVXQ VWRRGVWLOODQGWKHPRRQVWD\HGXQWLOWKHSHRSOHKDGDYHQJHG WKHPVHOYHVXSRQWKHLUHQHPLHV7KXVVSDNH-RVKXDWRWKH/25'LQWKHGD\ZKHQ WKH/25'GHOLYHUHGXSWKH$PRULWHVEHIRUHWKHFKLOGUHQRI,VUDHODQGKHVDLGLQ WKHVLJKWRI,VUDHO6XQVWDQGWKR XXSRQ*LEHRQDQGWKRXU0RRQLQWKHYDOOH\RI $M·DORQ$QGWKH6XQVWRRGVWLOODQGWKH0RRQVWD\HGXQWLOWKHSHRSOHKDG DYHQJHGWKHPVHOYHVXSRQWKHLUHQHPLHV   %RRNRI,VDLDKY%HKROG,ZLOOEULQJDJDLQWKHVKDGRZRIWKHGHJUHHVZKLFK LVJRQH GRZQLQWKHVXQGLDORI$KD]WHQGHJUHHVEDFNZDUG6RWKH6XQUHWXUQHG WHQGHJUHHVE\ZKLFKGHJUHHVLWZDVJRQHGRZQ   %\'LRQ\VLXVWKH$UHRSDJLWHLVXVXDOO\XQGHUVWRRGWKHMXGJHRIWKH$UHRSDJXV ZKRDVUHODWHGLQ$FWV[YLLZDVFRQYHUWHGWR&KUL VWLDQLW\E\WKHSUHDFKLQJRI 6W3DXODQGDFFRUGLQJWR'LRQ\VLXVRI&RULQWK(XVHELXV+LVW(FFO,,,LY ZDV %LVKRSRI$WKHQV   ´(LWKHUWKH*RGRIQDWXUHVXIIHUVRUWKHIUDPHRIWKHZRUOGZLOOEHGLVVROYHGµ 5HPDUNDWWULEXWHGWR'LRQ\VXVLQWKH/DWL Q%UHYLDU\ZKHQKHZDVLQ(J\SWDWWKH WLPHRI&KULVW·VVXIIHULQJDQGVDZDWRWDOHFOLSVHRIWKH6XQDQGEHOLHYHGLWWREH FRQWUDU\WRQDWXUH   -RKDQQHV*HUVRQ)URPDGRFWRURIWKHRORJ\VLQFHFKDQFHOORURIWKH XQLYHUVLW\RI3DULVWHPSRUDULO\ 3ULRURIDPRQDVWHU\LQ)ODQGHUV   5RPDQ(PSHURU&( ²&(  7KUHHFRPHWVDSSHDUHGLQ   

2OG 7HVWDPHQW RI WKH 6XEYHUVLRQ RI .LQJGRPV DQG 1DWLRQV EXW HVSHFLDOO\ WKDW RI WKH -HZV E\ WKH %DE\ORQLDQV WKH ZKLFK 3HRSOH XSRQ FRQGLWLRQ WKH\ ZRXOG IROORZ WKH /DZ RI WKH /RUG ZHUH SURPLVHG WR EH HVWDEOLVKHG IRU HYHU VKDOO DQ\ RQH IURP WKLV 3URPLVH DYHU WKDW WKHLU .LQJGRP ZDV QRW SUHRUGDLQHG WR GHVWUXFWLRQ LQ LWV GXH WLPH DQG WKH OLPLWDWLRQWKHUHRIORQJEHIRUHVHWGRZQ"EXWWKDWLPPHGLDWHO\EHFDXVHWKH\ GLVREH\HG WKH\ ZHUH GHVWUR\HG DQG FDUULHG DZD\ FDSWLYH RU UDWKHU WKDW WKDW $JH ZKHUHLQ WKH\ ZHUH VR FDSWLYDWHG VKRXOG LQ WKH IXOOQHVV RI WKDW WLPHEHVRLQFOLQHGWRZLFNHGQHVVDVWREULQJWKDWDIIOLFWLRQVRORQJEHIRUH WKUHDWHQHGXSRQWKHP"6RWKHQWKHVHWZR7+(2/2*<DQG$6752/2*< PXVWDJUHHWRJHWKHURUZHVKDOOQHYHUEHDEOHWRDJUHHLQ7UXWKEXWUXQRXU VHOYHVLQWRPDQ\(UURUDQG$EVXUGLWLHV  ,QWKDW%RRNDOVR\RXPD\VHHKRZIDUZHPD\VDIHO\DWWULEXWHWRWKH SRZHU RI WKH 6WDUV DQG WKDW WKHLU HIIHFWV PD\ EH DOWHUHG \HW EXW E\ RQH PHDQVYL]3UD\HUIRULI*2'JLYHDQKHDUWWRSUD\DVLWRXJKWQRTXHVWLRQ KHDOVRWKHUHZLWKJUDQWVWKH3HWLWLRQUHTXHVWHGLQWKRVH3UD\HUV   /DVWO\ P\ PDLQ VFRSH DQG FKLHI GULIW LQ WKLV P\ IRXUWK IRXUIROG :RUNLVVLQFH,KDYHVRRIWHQVWRRGXSIRUWKHPDLQWHQDQFHRIWKLV6FLHQFH  WR HQGHDYRXU WR PDQLIHVW XQWR WKH :RUOG WKH SXULW\ WKHUHRI KDYLQJ FOHDQVHGLWIURPLWVSROOXWLRQVDQGDEXVHVWKDWVRLWPD\DSSHDUZKDW758( $6752/2*< LV DQG ZKDW , PDLQWDLQWREHVRDQGWKHDEXVHEHQRWRQO\ GLVFRYHUHGEXWWDNHQDZD\WKDWRQFHPRUHLWPLJKWVKLQHJORULRXVO\DQGEH DEOHWRVWDQGDJDLQVWDOO*DLQVD\HUVZKDWVRHYHU)RUQRWZLWKVWDQGLQJ,KDG GHOLYHUHG P\ VHOI VR SODLQO\ LQ P\ IRUPHU :RUNV HVSHFLDOO\ LQ P\ 9R[ 6WHOODUXP\HWGLGWKHSXULW\RIWKLV6FLHQFHUHPDLQXQGHUWKHFHQVXUHEHLQJ E\ PDQ\ GHHPHG QR RWKHU WKHQ MXJJOLQJ E\ RWKHUV WR H[WHQG QR IXUWKHU WKHQ WR WKH UHVROXWLRQ RI +RUDU\ 4XHVWLRQV DQG -XGJLQJ RI 1DWLYLWLHV DQG WKH )DWHV DQG )RUWXQHV RI PHQ WKHUHE\ RU DW OHDVW WKDW WKLV ZDV WKH PDLQ DQG FKLHI VXEMHFW WKHUHRI ZKHQ WKH WUXWK LV WKH SUDFWLVH RI VRPH PHQ LQ WKHVH ULGLFXORXV YDQLWLHV WRJHWKHU ZLWK VRPH RWKHU DEXVHV RI WKLV 0267 12%/(6&,(1&(2)$6752/2*,(KDYHEURXJKWWKHSXULW\WKHUHRILQWR TXHVWLRQ E\ WKH XQZRUWK\ DQG WKH 6FLHQFH LW VHOI JHQHUDOO\ LQWR UHSURDFK ZLWKWKHLOOLWHUDWH   )RU , GDUH SRVLWLYHO\ DIILUP DQG VKDOO EH UHDG\WRSURYHLWWRDQ\ 5DWLRQDOPDQ 7KDWWKH5HVROXWLRQRI+RUDU\4XHVWLRQVLVZKROO\YDLQDQG XQFHUWDLQ DV DOVR 1DWLYLWLHV RQ ZKLFK WKH\ GHSHQG RU DW OHDVW VKRXOG  H[FHSWLQJKRZWR-XGJHRIWKHSDUWLFXODU&RQVWLWXWLRQDQG7HPSHUDWXUHRI WKH%RG\DQGWKH1DWXUDOLQFOLQDWLRQRI0DQDV,VKDOOVSHFLI\LQWKHWK &KDSWHURIWKHILUVW%RRNRIWKLV4XDGULSDUWLWHIRO  %XW LWPD\EHVRPHPD\KHUHGHPDQGWKH5HDVRQWKHQ,GRLQP\ /X[ 9HULWDWLV XQGHUWDNH WKH 5HVROXWLRQ RI VRPH 4XHVWLRQV" %XW , VKDOO DQVZHU LQ WKDW YXOJDU DQG UXVWLFDO 3URYHUE ,W LV D JRRG +RUVH WKDW QHYHU 

  7KDW7KHRORJ\DQG$VWURORJ\DJUHHWRJHWKHU   7KH$XWKRUVFKLHIGULIWLQWKHVHKLV/DERXUV   7KH$XWKRUVRSLQLRQWRXFKLQJ1DWLYLWLHVDQG+RUDU\4XHVWLRQ V  

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´,WLVD JRRGKRUVHWKDWQHYHUVWXPEOHV$QGDJRRGZLIHWKDWQHYHUJUXPEOHVµ2U´+DUP ZDWFK+DUPFDWFK,WLVDJRRG+RUVHWKDWQHYHUVWXPEOHVµ$VJLYHQLQ1DWKDQ %DLOH\·V 'LFWLRQDU\RI3URYHUEV 9HUVLRQVDUHIRXQGLQ5XVVLDQ)UHQFK *HUPDQDQG(QJOLVK   1DWLYLWLHVDQG4XHVWLRQV   ´7KHGD\VRIRXU\HDUVDUHWKUHHVFRUH\HDUVDQGWHQDQGLIE\UHDVRQRIVWUHQJWK WKH\EHIRXUVFRUH\HDUV\HWLVWKHLUVWUHQJWKODERXUDQG VRUURZIRULWLVVRRQFXWRII DQGZHIO\DZD\µ   ´)RUZHDUHEXWRI\HVWHUGD\DQGNQRZQRWKLQJEHFDXVHRXUGD\VXSRQHDUWKDUH DVKDGRZµ   $ZRUGWRWKHZLVHLVVXIILFLHQW    

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

 

+LJKZD\ WXUQ &XWWHUV DQG IURP WKHQFH UHWXUQ WR 7\EXUQ ZKHUH WRR ODWHWKH\5HSHQWDQGZLWKDQ\ZRXOGFXWWKH5RSHEXWFDQQRWDGYDQWDJH WKHPVHOYHVWKHQDQGWKHUH VDQHQGRIWKHP"  3RRU :UHWFKHV ZHUH QRW WKH\EHWWHUEHROGZKLOVWWKH\DUH\RXQJ UDWKHU WKHQ EH KDQJHG NLOOHG DQG PXUGHUHG XSRQ HYHU\ RFFDVLRQ EHIRUH WKH\EHROG"EHJUDYHVREHUVHULRXVWKHQZKLPVLFDOILFNOHDQGIDQWDVWLFDO" DSSO\WKHLUPLQGVWRWKHVWXG\RIYLUWXHDQGWKHOLEHUDO6FLHQFHVWKHQWKXV WROHDUQQRWKLQJEXWYLFHIRROHU\IRSSHU\DQGYH[DWLRQRIVSLULW".QRZLQJ WKDW WKHLU WLPH LV VKRUW HQRXJK WR OHDUQ JRRGQHVV DQG WKHUHIRUH QRW SURGLJDOO\WKXVWRVTXDQGHULWDZD\XSRQWULIOHVDQGFKLOGLVKFRQFHLWV+DG WKH\QRWEHWWHUEHFRQWHQWHGZLWKDFRPSHWHQF\DQGOLYHZLWKLQFRPSDVV DQG DGGLFW WKHPVHOYHV WR WKHLU %RRN WKHQ IODXQW LW URDU DQG VZDJJHU LW DERXW WKH VWUHHWV ZLWK WKH 'UDSHUV FORWK RQ WKHLU EDFN WKH 7DLORUV :RUNPDQVKLS 3RLQWV DQG )DQFLHV DQG DOO XQSDLG IRU" WKH +DEHUGDVKHUV KDW WKH VPLUNLQJ 6HDPVWHUV KDOI DQG ZKROH 6KLUWV %DQGV &XIIV DQG %RRWKRVHWRSV ZLWK WKH 6KRHPDNHUV %RRWV" /LNH $VS·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

WKDWKHOHDYHVKLVFKLOGLVKWR\VH[WUDYDJDQWFRXUVHVDQGKLVZLOGXQWDPHG FXVWRPDU\OLIHEXWKHLVRYHUZKHOPHGZLWKDOOWKHVH,IKHKDYHPRQH\KH LVWURXEOHGDQGSHUSOH[HGZLWKFDUHWROD\LWRXWWRWKHEHVWDGYDQWDJHDQG DOWKRXJKKHKDVHPSOR\HGLWDVZHOODVKHDUWFRXOGGHVLUH\HWLVKHVWLOOLQ WKH VDPH FRQGLWLRQ WKLQNLQJ KH PLJKW KDYH LPSURYHG LW VR DQGVRPXFK EHWWHURUVXSSRVHKHEHVXIILFLHQWO\VDWLVILHGLWLVQREHWWHUWREHKXVEDQGHG \HW LV KH RQ WKH RWKHU VLGH HDWHQ XS ZLWK IHDU VDGQHVV PHODQFKRO\ DQG GLVFRQWHQW DV PXFK DV LI LW ZHUH XWWHUO\ ORVW ZKHQ LQGHHG KH KDG PRUH PDWWHURIMR\7KLVLVDOVRYDQLW\  ,IKHZDQWPRQH\ZKDWPLVHU\LVKHRYHUFKDUJHGZLWKDFRQWLQXDO IHDU SRVVHVVHV KLV 6SLULWV WKDW KH VKDOO VWDUYH OLH LQ *DRO KDYH QR IULHQG DERXQG ZLWK GLVJUDFHV IOLJKWV IURZQV DQG DIIURQWV HYHQ IURP WKH PRVW UXUDO DOWKRXJK QHYHU VR ZHOO GHVHUYLQJ LV KH QRW WKHQ UHDG\ WR WDNH DQ\ GHVSHUDWH FRXUVH DQG GHVLJQ LQ KDQG" DQG LV QRW WKLV WURXEOHVRPH ORDWKVRPHDERPLQDEOHOLIHHQRXJKWRPDNHKLPGRWKDWZKLFKLQKLVRZQ QDWXUDOKXPRXUKHHYHUGHWHVWHG",VQRWWKLVYDQLW\DQGIROO\WKHQ"VXUHLWLVD JUHDWHYLO  +DVKHDFRPSHWHQF\>ZKLFKLVWKHJROGHQPHDQWREHGHVLUHGRIDOO PHQ@\HWKHLVQRWFRQWHQWKHPXVWKDYHPRUHKHOLYHVQRWVRKLJKDVKLV 1HLJKERXUV KLV :LIH DQG &KLOGUHQ IODXQW LW QRW OLNH WKHP KH KDVQRWKLV &RDFK6DGGOHKRUVHVIRUKLPVHOIDQGDFRXSOHRIPHQQRUWKHDWWHQGDQFH FDSLQKDQGWKDWKHVHHVRWKHUVKDYH2PLVHUDEOHPDQKRZYDLQDUH\RX WKDW\RXNQRZVQRW\RXURZQKDSSLQHVV"&RQWHQWDWLRQLVWKHFKLHIJDLQDQG DVRQHPRVWHOHJDQWO\VDLG,WLVQRWWKHDEXQGDQFHRI5LFKHVRU3RVVHVVLRQVDPDQ KDV WKDW PDNHV KLP 5LFK EXW WKH FRQWHQWHGQHVV RI WKLV PLQG )RU KRZ PDQ\ ROG JUXEELQJ 8VXUHUV ZKR DV$QDFKDUVLV VDLG FDUU\ *ROG OLNH$VVHV\HW HDW EXW +D\  SLQH WKHPVHOYHV" IHHG XSRQ SRUULGJH D ZKROH KDOI \HDU WRJHWKHUPDNHDSHQQ\VHUYHWKHPDGD\ZLOOQRWEHVWRZDIDUWKLQJWRWKH PDNLQJ WKHPVHOYHV ZHOO ZKHQ VLFN IRU IHDU RI SDUWLQJ ZLWK WKHLU 0DPPRQPRQH\ DOWKRXJK EXW D WULIOH EXW FKRRVH UDWKHU WR SXW LW WR WKH YHQWXUHDQGOHWLWZHDUDZD\DVWKH\XVHWRVD\ ZKHQRIWHQWLPHVLWZHDUV WKHPDZD\RUDWOHDVWEHDUVWKHPDZD\DQGVRDUHMXVWO\GLVVLSDWHGRIDOO IRU IHDULQJ WR SDUW ZLWK VRPH $UH QRW WKHVH PHQ ZUHWFKHG SRRU HYHQ ZKLOVW WKH\ SRVVHVV WKH JUHDWHVW 5LFKHV" ,V WKHUH DQ\ RI WKHP FDQ DIIRUG WKHPVHOYHVQHFHVVDULHV"GRWKH\QRWOLYHPRUHOLNH%HJJDUVRU3HDVDQWV>DW WKHEHVW@WKHQULFKDQGZHDOWK\PHQ"  $QGQRZ,PLJKWKHUHVKRZWKHRGLRXVQHVVDQGYLFLRXVQHVVZKLFK RI DOO WKLQJV LV PRVW GHWHVWDEOH EXW , IHDU , KDYH DOUHDG\ WUDQVJUHVVHG WKH RUGLQDU\ERXQGVRIDQ(SLVWOHZKHUHIRUHOHDVWWKH3RUFKRIWKLVP\)DEULF DULVHWRDJUHDWHUEXONWKHQWKHZKROHEXLOGLQJ,VKDOOSDVVLWE\   &RQWHQWVDWLVIDFWLRQ   ´+HLVULFKHVWZKRLVFRQWHQWZLWKWKHOHDVWIRUFR QWHQWLVWKHZHDOWKRIQDWXUHµ 6RFUDWHV   6F\WKLDQSKLORVRSKHUHDUO\ WKFHQWXU\%&($OHJHQGDU\SULQFHH[WROOHGLQVRPH DQFLHQW*UHHNOLVWVDVRQHRIWKHVHYHQZLVHPHQ   0DPPRQLVDSHUVRQLILFDWLRQRIZHDOWKDQGDYDULFHDVDQHYLOVSLULW/XNH  0DWWKHZ/XNH    

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
  +HUFXOHVZDVWKHVRQRI=HXVDQGDPRUWDOZRPDQQDPHG$OFPHQH+HLV FRQVLGHUHGDGHPLJRGRUKDOILPPRUWDO+HUFXOHVRU+HUDFOHVZDVEOHVVHGZLWK DPD]LQJVWUHQJWK+HXVHGKLVSRZHUWRGRJRRGLQ*UHHFHEXWKLVGHHG VZHUHQRW DOZD\VQREOH:KHQDSHUVRQUHFHLYHVDMREWRGRWKDWWKH\ILQGYHU\WHGLRXVRU LUNVRPHWKH\PD\FDOOLWD+HUFXOHDQWDVN7KHSKUDVH+HUFXOHDQWDVNLVFRLQHG IURPWKH7ZHOYH/DERXUVRI+HUFXOHV   6FKHPHVLGHDV   *DPEOLQJ   

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

  $VKRUWGHVFULSWLRQRIWKHZRUOGDQGWKHY DQLW\WKHUHRI   ´,ZLOOEHDVJUHDWDV$SROORµ   ,DPDVWXSLGPDQ   7KHHLJKWKZLVHPDQ   %ORRGUHODWLRQVKLS   2U´1RVRQJQRVXSSHUµ   :RUGPLVVLQJIURPRULJLQDOWH[W   ´,I,EHIDOVHWR(QJODQG(LWKHULQHDUQHVWRULQMHVW,PLJKWEHOLNHQHGW RDELUG WKDWGLGGHILOHLWVQHVWµ7UDGLWLRQDOSURYHUE   $PELGH[WURXVSHRSOHGLVKRQHVWDV\RXGRQ·WNQRZZKDWWKHLUKDQGVDUHGRLQJ   $WZRIDFHGSHUVRQDIWHU-DQXVWKHWZRIDFHG5RPDQJRG   

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´ODTXDLVµ   $YDQHRIWHQLQWKHILJXUHRIDFRFNPRXQWHGVRDVWRWXUQIUHHO\ZLWKWKHZLQG DQGVKRZLWVGLUHFWLRQDQGWKHUHIRUHDSHUVRQRUWKLQJWKDWFKDQJHVUHDGLO\RU RIWHQ  $IRROLVKFRQFHLWHGSHUVRQ   $KLUHOLQJZKRPD &DSWDLQRQPXVWHUGD\VIRLVWVLQWRKLVFRPSDQ\EDVH  IROORZHU   &KHDWHUGHFHLYHUEHJXLOHUHVSHFLDOO\RQHWKDWXVHVIDOVHFDUGVRUGLFH   $EXIIRRQ   

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pILQLVK   $JURDWZDVDVLOYHUFRLQZRUWKIRXUSHQQLHV   7LWOHRIDSRSXODUVRQJ   (YHU\-DFND QG-LOOLQRWKHUZRUGVHYHU\RUGLQDU\PDQRUZRPDQ   

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´:KLFK MXVWLI\WKHZLFNHG IRUUHZDUG DQGWDNHDZD\WKH ULJKWHRXVQHVV RIWKH ULJKWHRXV IURPKLPµ   &RZDUGO\DQGGHVSLFDEOHSHUVRQV   

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µ  2IWKH3DODFHVRI.LQJV   $PDQRIHOHYDWHGUDQNRUVWDWLRQHVSHFLDOO\D6SDQLVKRU3RUWXJXHVHQREOHPDQ  RIWKHILUVWUDQN   7KH$XWKRUVH[KRUWDWLRQWRWKLVPDGZRUOG   

QDUURZ FRQILQHV RI D &RIILQ DQG FRXOG SRVVHVV QR PRUH RI ZKDW KH KDG JDLQHG WKHQ KLV MXVW OHQJWK DQG EUHDGWK ZKLFK ZDV QRW GHQLHG WR WKH PHDQHVW KH VXEGXHG \RX KDYH KHDUG ZKDW WKH *UHDW &RQTXHURU RI WKH (DVW6DODGLQ FDUULHG WR KLV *UDYH RI DOO KH KDG JDLQHGEXWDSRRUEODFN 6KLUWZKHUHIRUHOHWWKH:25'2)*2'EH\RXUZKROHVWXG\\RXUGHOLJKW ERWKGD\DQGQLJKWWKDWZKHQ\RXFHDVHVWREHKHUH\RXPXVWEHHWHUQDOO\ JORULILHGKHUHDIWHUWKLVLVWKHVXPPXPERQXPWKHFKLHIJRRG\HWQH[WXQWR LW OHW PH UHFRPPHQG WKH VWXG\ RI 1DWXUH EHIRUH DQ\ RWKHU WKLQJ ZKDWVRHYHU IRU WKDW LW LV WKH JUHDW KDQGPDLG RI WKH $OPLJKW\ E\ ZKLFK \RX PXVWGDLO\DQGKRXUO\VHHWKHVHFUHWRSHUDWLRQVRIKLVKDQGVDQGEHGUDZQ QHDUHUDQGQHDUHUWRKLPIRUDFFRUGLQJWRWKH$SRVWOHE\NQRZLQJ1DWXUDO WKLQJVZHFRPHWRNQRZ6SLULWXDOWKHEHWWHU  $QG QRZ KHUH LW UHPDLQV , VKRXOG DJDLQ UHWXUQ WR VKRZ \RX WKH PHWKRGDQGPDQQHURIWKHVXEVHTXHQW:RUNZKHUH,OHIWRIIDQGVRKDVWHQ WRDFRQFOXVLRQEXWVLQFH,KDYHUHFRPPHQGHGXQWR\RXWKDWZKLFKLVWKH FKLHI PHDQV RI RXU IXWXUH IHOLFLW\ , WKLQN JRRG ILUVW VLQFH RXU KDSSLQHVV KHUH DQG WKH KRSH WKHUHRI KHUHDIWHU FRQVLVWV PXFK RQ WKH JRRGQHVV RU EDGQHVVRIRXUIULHQGVDQGDVVRFLDWHV KHUHWRGHOLYHU\RXVRPH5XOHVKRZ WRFKRRVHDWUXH)ULHQGWRNQRZDWUXH)ULHQGDQGWRNHHSDWUXH)ULHQG IRU FRPPRQO\ DFFRUGLQJ WR WKH FRPSDQ\ VR ZH FRQIRUP RXU VHOYHV WKH ZKLFK LI LW EH RWKHU WKHQ JRRG SURYHV RXU XWWHU GHVWUXFWLRQ DFFRUGLQJ WR WKHROG3URYHUE(YLOFRPPXQLFDWLRQFRUUXSWVJRRGPDQQHUV   ,Q FKRRVLQJ WKHQ RI )ULHQGV ILUVW QHJDWLYHO\ DQG WKHQ  DIILUPDWLYHO\,VKDOOGHVLUH\RXWRREVHUYHWKHVH5XOHV1HJDWLYHO\WKDWE\ QR PHDQV \RX IDPLOLDUO\ DVVRFLDWH \RXU VHOI ZLWK D OLDU GLVVHPEOHU RU D IODWWHUHU QHLWKHU ZLWK D SURXG PDQ QRU FRYHWRXV SHUVRQ IRU WKH\ ZLOO SURYHGHFHLWIXOWUHDFKHURXVDQGVHOIHQGHGEHZDUHDOVRRI%UDJDGRWLD V, PHDQVXFKDVERDVWDQGJORU\RIWKHLUFKDULW\RUFRXUWHV\WRRWKHUVWKDWWKH\ KDYHGRQHWKLVJRRGWXUQDQGWKHRWKHUJRRGWXUQIRUWKHPIRUWKRXJKLW EHWUXHWKH\KDYHEHHQEHQHILFLDOWRVXFKDQGWKDWWKH\KDYHGRQHDOOWKDW WKH\ EUDJ RI \HW ZLOO VXFK >WDNH LW IRU DQ DSSURYHG PD[LP@ EH QHYHU WUXHKHDUWHG XQWR \RX $QG VXFK DV DUH VR EDVH DV WR GHVLUH RU EHJ WKDW ZKLFKWKH\VHHLVSUHFLRXVDQGGHDULQWKHVLJKWRIDQ\RQHDUHDOVRWREH VKXQQHGZLWKWKRVHWKDWDUHQRWDEOHWRNHHSVHFUHWZKDWLVFRPPLWWHGWR WKHPLQ7UXVWDQG3URPLVHEUHDNHUVDQGVXFKDVPHUHO\HVWHHPRI\RXIRU \RXU5LFKHVIRUWKHVHDOWKRXJKWKH\FDUU\DJUHDWDSSHDUDQFHRURXWZDUG JORVV RI )ULHQGVKLS XQWR \RX \HW DUH WKH\ QHYHU FRUGLDO DQGUHDO)ULHQGV EXWIDLQHGRXWVLGHV%XWRQWKHRWKHUVLGHOHWVXFKEHGHHUXQWR\RXDQG FKRVHQIRU\RXUIULHQGVDQGIDPLOLDUVWKDWDUHKRQHVWDQGSUXGHQWDQGDV &LFHUR VD\V ZKRVH LQWHJULW\FRQVWDQF\ILGHOLW\DQGOLEHUDOLW\LVNQRZQWR DOO WKHLU DFTXDLQWDQFH /HW KLP WKDW LV ]HDORXVO\ DIIHFWHG ZLWK DQG WR   $UDELF6DODKDG 'LQ"²0XVOLPZDUULRUDQG$\\XELGVXOWDQRI(J\SW WKHJUHDWRSSRQHQWRIWKH&UXVDGHUV   &RULQWKLDQV   ,QVWUXFWLRQVKRZWRFKRRVHDIULHQG   %UDJJDGRFLRV7 KRVHZKREUDJRUERDVW)URPWKHFKDUDFWHULQ )DHULH4XHHQH E\ (GPXQG6SHQVHU   )DNHGLQVLQFHUH   

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²%&(DOVRVSHOW'LFDHDUFKXV+HZDVDVWXGHQW RI$ULVWRWOHDQGKLVZRUNLVDOPRVWORVWWRGD\+HZRUNHGPDLQO\LQWKHILHOG RI FDUWRJUDSK\   2QHRIWKHVHYHQZLVHPHQRI*UHHFH   &DYHDWVLQFKRRVLQJ RIIULHQGV  +RZWRNQRZDWUXHIULHQG   

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´1RRQHOLYHVDOLIHZLWKRXWFULPHµ'LRQ\VLXV&DWR   

RI P\ VHOI DFFRUGLQJ WR 'LGDFXV 6WHOOD LQ /XF  7RP  'ZDUYHV RU 3LJPHL JLJDQWXP KXPHULV LPSRVLWL SOXVTXDP LSVL JLJDQWHV YLGHQW 3LJPLHV VWDQGLQJXSRQWKHVKRXOGHUVRI*LDQWVPD\VHHIDUWKHUWKHQWKRVH*LDQWV ,ZRXOGKDYHQRQHWKHUHIRUHZRQGHUWRVHHPHIUHTXHQWO\GLVVHQWIURPWKH $QFLHQWV DQG UHODWH P\ RZQ FRQFHSWLRQV LQ GLYHUV SODFHV \HW LQ PRVW , IROORZ P\ $XWKRUV DW OHDVW LQ VHQVH WKRXJK QRW YHUEDWLP $QG LQ VRPH SODFHV , KDYH WURG WKH YHU\ LJQRUDQW DQG LUUDWLRQDO SDWKV RI WKH $QFLHQWV WKDW VR WKH LQJHQLRXV DQG ZHOOZLOOHU WR WKLV 6FLHQFH PD\ KDYH PDWWHU ZKHUHZLWK WR H[HUFLVH KLPVHOI DQG QRW ZKROO\ WR JLYH KLPVHOI RYHU WR WUDGLWLRQDO SUHFHSWV IRU P\ RZQ SDUW , DEKRU LPSOLFLW )DLWK RU HUURQHRXV WUDGLWLRQ ZLWKRXW VRXQG DQG VXIILFLHQW UHDVRQ JLYHQ IRU LW DQG WKHUHIRUH \RX ZLOO ILQG , KDYH RIWHQ LQ WKHVH P\ ODERXUV GLVVHQWHG IURP P\ 3UHGHFHVVRUV %\ VRPH SHUKDSV , VKDOO EH GLVFRPPHQGHG DQG DJDLQ E\ RWKHUV DSSODXGHG IRU LW LW LV DQ KDUG PDWWHU WR SOHDVH DOO SDUWLHV DQG WKHUHIRUH,KDYH,VD\ OHWVOLSVRPHSODFHVRQSXUSRVHWRFRQYLQFH\RXWKDW IRUPHU $JHV KDG QRW DOO WKH NQRZOHGJH LQ WKH :RUOG WKDW VR\RXPD\EH ZHDQHGIURP\RXUFRQILGHQFHLQWKHZULWLQJVRIWKH$QFLHQWVZKHQQHLWKHU UHDVRQQRUH[SHULHQFHDUHRQWKHLUVLGH,VKDOOQRWQHHGWRWXUQ\RXWRDQ\ RIWKRVHSODFHVLQWKLV%RRN,KRSH\RXULQJHQXLW\ZLOOEHDVXIILFLHQWLQGH[ WKHUHXQWR \HW OHDVW VRPH 0RPXV VKRXOG FRQYHUW WKLV P\ VLOHQFH WR LJQRUDQFH DQG HQGHDYRXU WR ZRXQG PH ZLWK P\ RZQ ZHDSRQ E\ LPSXWLQJ WKDW DV D IDXOW LQ PH ZKLFK , GLG ZLOIXOO\ QHJOHFW , VKDOO KHUH PHQWLRQRQHSODFHEHLQJVRUHPDUNDEOHDQGVRSDOSDEOHDQDEVXUGLW\/LE 6HFW&KDSRIWKLVYROXPH\RXZLOOILQGWKHVLJQLILFDWLRQVRIWKH6XQ ZKHQ KH LV /RUG RI WKH \HDU LQ DQ\ RI WKH WZHOYH VLJQV$ULHV 7DXUXV *HPLQL&DQFHUDQG/HREHLQJH[SUHVVHGDQGWKHUHVWE\YDU\LQJWKHIRUPHU 5XOHVLPSOLHGZKLFKRIDOODEVXUGLWLHVLVWKHJUHDWHVWLWEHLQJLPSRVVLEOHIRU WKH 6XQ WR EH LQ7DXUXV *HPLQL /HR 9LUJR 6FRUSLR 6DJLWWDULXV $TXDULXV RU 3LVFHVLQDQ\\HDUO\KDOI\HDUO\RUTXDUWHUO\LQJUHVVZKLFKLVHYHUPDGHDW KLV HQWUDQFH LQWR WKH ILUVW SRLQW RI WKH (TXLQRFWLDOV $ULHV DQG /LEUD RU 7URSLFV &DQFHU DQG &DSULFRUQ DQG WKHUHIRUH , PXVW QHHGV FRQFOXGH WKH $QFLHQWV KDYH KHUHLQ EHHQ YHU\ ZHDN DQG DV ZRUWK\ UHSUHKHQVLRQ DV DSSODXVHLQRWKHUPDWWHUV
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·V 'UHDPRI6FLSLRZKLFKZDVSRSXODULQWKH0LGGOH$JHVDQGLQIOXHQFHG &KDXFHU   6D\LQJZKDWHYHUFDPHWRP\PRXWK   7HUHQFH5RPDQFRPLF GUDPDWLVW%&( %&(DXWKRURI $GHOSK  



7KHZKLFK\RXPD\(QJOLVKWKXV  1DXJKWHYHUZDVDWILUVWFRQWULYHGVRILW %XW8VHRU$JHRUVRPHWKLQJDOWHUHGLW

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

  7KH$XWKRU·VOLIH   7KHWLPHDQGSODFHRIKLVELUWKDQGKLVSDUHQWDJHDQGIDPLO\   :ULWWHQLQ(QJOLVK   7KHRULJLQDORIRXUQDPHDQGIDPLO\   'LVWULFWRIDQFLHQW(J\SW HDVWRIWKH1LOH'HOWD   



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

  9L]6DYHRIWKDWWUDGHWRFRXQWHQDQFHDQGFUHGLWWKHPVHOYHVLQWKH.LQJVWLPHDIILUPLQJ KLPWREHWKHLU0RWKHUDQGQRZVLQFHE\RWKHUVWKURXJKHQY\WKLQNLQJWKHUHE\WRXSEUDLG DQGUHSURDFKERWKKLPDQGPH   :KHUHWKH$XWKRU KDGKLVHGXFDWLRQDQGKRZKHKDVVLQFHVSHQWKLVGD\V 

 

'LHIODQXDULL
 

8SRQWKH$XWKRUV(ODERUDWH3DLQVLQWKHVHKLV/DERXUV  

:+2LQKLV:ULWLQJVVHHNVDOOPHQWRSOHDVH ,VQRWXQOLNHWKH0HUFKDQWRQWKH6HDV 0HHWLQJZLWKURFNVZLQGVSLUDWHVVKHOYHVDQGVDQGV
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

 





2QWKLVLQFRPSDUDEOH:RUNDQGP\ZRUWK\)ULHQGWKH,QJHQLRXV $87+25 :KDWVKDOO,RIWKHVHOHDUQHG/DERXUV:ULWH 2URIWKH$XWKRUZKDWVKDOO,LQGLWH" &RPHDOO\H*RGVDVVLVWWKLVSHQRIPLQH &RPHDOO\H6LVWHUVFRPH\H0XVHV1LQH /HQGKHUH\RXUKHOSDQGOHWQRZDOOPHQNQRZ ,IWKH\LQ0\VWHULHVGHVLUHWRJURZ +HUHWKH\WKH7UHDVXUHRIWKH(DVWPD\ILQG $QG1DWXUDOKLGGHQFDXVHVWRWKHLUPLQG +RZE\WKHYLUWXHRIWKHJORULRXV6WDUV +HDOWK6LFNQHVV3OHQW\6FDUFLW\3HDFH:DUV  $UHEURXJKWWRSDVVLQWKHLUGXHWLPHDQGDOO 7KLQJVWKDWDUHGRQHLQWKLV:RUOGJUHDWDQGVPDOO $QGWKDW*RGZRUNHWKQRWSUHSRVWHURXVO\ $VVRPHPHQVWUDQJHO\KDYHPDLQWDLQHGEXWE\ 2UGHUDQG1DWXUHKHEULQJVDOOWRSDVV :KLFKZHPD\FOHDUO\VHHDVLQDJODVV &RXOGZHEXWUHDGWKHYROXPHVRIWKH6N\ $VKHUHWKH$XWKRUFOHDUVLWWRWKHH\H 2IHYHU\QRWLRQZKRVHHODERUDWHSDLQV %HUHFRPSHQVHGZLWKLPPRUWDOJDLQV $QGZKHQKHVKDOOEHWDNHQIURPWKLVSODFH /HWKLPEHIL[HGDPRQJVWWKH6WDUVWRJUDFH 7KRVH+HDYHQO\ERGLHVDQGWKRVH/DPSVRI/LJKW )RUKHKDVPDGHWKHPJORULRXVLQRXUVLJKW,:

 





$6752/2*<)8//<9LQGLFDWHGDQG'HIHQGHG )520$// 7KH$VSHUVLRQVDQG&DOXPQLHVRIWKH$QWDJRQLVWVWKHUHRI $VDOVRLWV/HJDOLW\DQG9HULW\SURYHGERWKE\WKH 7HVWLPRQ\RIWKH6FULSWXUHV)DWKHUV$QFLHQWVDQGWKHFRQIHVVLRQRI &RXQFLOV :LWKDFOHDU9LQGLFDWLRQRIWKH$XWKRUV/X[YHULWDWLV IURPWKHYLOLI\LQJ5HSURDFKHVRI'U+RPHVDQGKLV6HFRQG DQGWKDWWKHSXULW\RIWKH6FLHQFH UHPDLQVVWLOOXQWDLQWHGQRWZLWKVWDQGLQJDOOWKHLU5HSO\ 

 &+$3,3URYLQJ$VWURORJ\WREHRQHRIWKH/LEHUDO6FLHQFHV



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

 &+$3,,7KDW$VWURORJ\DQG$VWURQRP\DUHRQHDQGWKHVDPH6FLHQFH DQGWKDWWKH\ZHUHHYHUVRUHFHLYHGE\WKH$QFLHQWV



,KDYHDOUHDG\GHFODUHGWKHWHVWLPRQ\RI$ULVWRWOHRQWKLVSRLQWDQGLIZH SHUXVHWKHZRUNVRI3WROHP\ZHVKDOOILQGDOVRWKDWKHPDNHVQRGLIIHUHQFH EHWZHHQ WKH RQH DQG WKH RWKHU DQG PRUH SDUWLFXODUO\ QRW WR LQVLVW ORQJ KHUHRQ  /LE, FDS GH 4XDGU  FDS GH 4XDGU KH FDOOV WKHUH WKH $UW RI $VWURORJ\$VWURQRP\DQGWKH3UHGLFWLRQV$VWURQRPLFDOVRFRQIRXQGLQJWKH GLVWLQFWLRQ RI WKH SDUWV ZLWK WKH HVVHQWLDO QDPH RIWKH6FLHQFH:KHUHIRUH WKRXJK 3WROHP\ KDV E\ VRPH EUDLQVLFN PHQ EHHQ EURXJKW WR FRQGHPQ 

  2IWKHOHJDOLW\JUHDWHVWHHPDQGDQWLTXLW\RI$VWURORJ\VWDQGLQJKLPDQGXQVKDNHQIRU RXJKWDOOWKHHQYLRXVFDUSHUVDQGLJQRUDPHRXVHVFDQVD\   +RZ$VWURORJ\DQG$VWURQRP\FDPHVHSDUDWHG$VWURORJ\DQG$VWURQRP\RQH DQGWKHVDPHVFLHQFH   7KHVHYHQOLEHUD OVFLHQFHVDUHJUDPPDUUKHWRULFORJLFDULWKPHWLFJHRPHWU\ PXVLFDQGDVWURQRP\   $ZRUGWRWKHZLVHLVVXIILFLHQW    3WROHP\PDNHVQRGLIIHUHQFHEHWZHHQ$VWURORJ\DQG$VWURQRP\   

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³ )OHPLVKWKHRORJLDQ   7KHODVWRIWKHHDUO\FRVPRORJLVWV$UFKHODXVRI$WKHQVZKRZDVDGLVFLSOHRI $QD[DJRUDV+H LVDOVRVDLGWRKDYHEHHQWKHWHDFKHURI6RFUDWHV   7XOO\  3OLQ\  *DLXV3OLQLXV6HFXQGXV (& EHWWHUNQRZQDV 3OLQ\WKH(OGHU DQDQFLHQW LPSRUWDQWDXWKRUDQGVFLHQWLVWZKRZURWH1DWXUDOLV+LVWRULDZKLFKDSSHDUVWREH WKHERRNUHIHUUHGWRKHU H3OLQ\·VZRUNZDVKHOGLQKLJKHVWHHPSDUWLFXODUO\GXULQJ WKH0LGGOH$JHV 7KH1DWXUDO+LVWRU\LVWKHRQO\RQHRI3OLQ\ VVHYHQZULWLQJVWR VXUYLYHDQWLTXLW\HQWLUH7KLVZRUNLQWKLUW\ VHYHQERRNVZDVDQDWWHPSWWRVXUYH\ DOOQDWXUDONQRZOHGJHV\VWHPDW LFDOO\LQDQXQDGRUQHGVW\OH%RRNDGGUHVVHV FRVPRORJ\DQGDVWURQRP\+LVLQIOXHQFHZDQHGDQGKLVZRUNVIHOORXWRIIDYRXU  

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





 SURSHUWLHV+HEHFDPHWKHPRVWIDPRXVDVWURORJHURIKLVWLPH,QKHZDV HQJDJHGLQDSXEOLFGHEDWHLQ%RORJQDZLWKIULDU*LRYDQQL6FKLRGD9LFHQ]D"   DYLJRURXVRSSRQHQWRIDVWURORJ\*XLGR%RQDWWLOHIWXVDQDVWURORJLFDO FRPSLODWLR QHQWLWOHG'HFHPFRQWLQHQVWUDFWDWXVDVWURQRPLDHZKLFKVXUYLYHVLQD ODUJHQXPEHURIFRGLFHVDQGZKLFKZDVSULQWHGWKUHHWLPHV   6HHDOVRKLVFKDS:KHUHXQGHUWKHZRUG$VWURQRP\DV\RXPD\VHHLQWKH&RQWHQWVRI WKHFKDSWHUKHSURYHV$VWURORJ\WR EHRQHRIWKH/LEHUDO6FLHQFHV   $VWURQRP\RIQRJUHDWXVHRUYDOLGLW\ZLWKRXW$VWURORJ\   

&+$3,,,&RQWDLQLQJWKH([FHOOHQF\DQG1RELOLW\RIWKH6FLHQFHRI $VWURORJ\DVDOVRLWV$QWLTXLW\DQGWKHDGPLUDEOHSRZHUDQGYLUWXHRI WKH+HDYHQV



/RRNDOVRLQWRWKH3UHIDFHRI*HUVRQKLV7ULORJLXP$VWURORJLFH7KHRORJL]DWFH ZKRUHGXFHVLQWKDWSLHFH$VWURORJ\WR'LYLQLW\ DQG\RXVKDOOILQGWKDWKH DFNQRZOHGJHVLWDQDGPLUDEOHDQG1REOH6FLHQFHUHYHDOHGWR$GDPWKHILUVW 3DWULDUFKE\*RGDQGVRWRKLVSRVWHULW\(UJRPRVWODZIXODQGWREHGHVLUHG DERYHDOO6FLHQFHVLQWKH:RUOGQRWEHLQJHLWKHU'LDEROLFDO,OOHJDORSSRVLWHWR WUXVW RU FRQILGHQFH RI *RG EXW LQGHHG UDWKHU D JUHDW PHDQV WR DFTXDLQW XV ZLWKKLV+HDYHQO\DQGLQFRPSUHKHQVLEOHGLYLQHVHOIZKHQE\WKHPRWLRQV DQG FRQVWDQW LQIOXHQFHV RI WKH &HOHVWLDO ERGLHV ZH NQRZ WKH FRUUXSWLRQ JHQHUDWLRQ DQG SURFUHDWLRQ RI DOO WKLQJV LQ WKLV (OHPHQWDU\ ZRUOGDQGVR FRQWHPSODWHDQGWDONRUFRQYHUVHGDLO\DQGKRXUO\ZLWKKLPZKRLVQRWWR EH EHKHOG E\ IUDLO PRUWDO H\HV RU IOHVK QRU WR VWDQG LQ WKH LPPHGLDWH SUHVHQFH RI WKDW GUHDGIXO RPQLSRWHQW *RG ZKRVH YRLFH DORQH LV D FRQVXPLQJILUH F*HUVRQVZRUGV,VD\ DUH3URSWHUHDQRQHVWKRFQHJDQGXP GH $VWURORJLDTXDP HVVH 6FLHQWLDP 1RELOHP  DGPLUDELOHP SULPR3DWULDUFKH $GDP VHTXDFLEXVUHYHODWDP7KHRORJLDQRQDEQHJDW:KHUHIRUHLWLVQRWWR EH GHQLHG RI$VWURORJ\ EXW WR EHD1REOHDQGDGPLUDEOH6FLHQFHUHYHDOHG ILUVW WR$GDP DQG KLV SRVWHULW\ 'LYLQLW\ UHIXVHV RU GHQLHV QRW IRU WKHUHLV QRWKLQJPRUHFHUWDLQWKHQWKDW*RGKDVLQKLVVHFUHWZLVGRPVRGLVSRVHGRI WKHFRQVWLWXWLRQRIWKH&HOHVWLDOERGLHVWKDWKLV:LOOE\WKHLURSHUDWLRQVDQG VHYHUDOLQIOXHQFHVLVDFWHGDQGSHUIRUPHGWKHUHE\VRWKDWWRWKHHQGRIWKH ZRUOG LW LV IRUHRUGDLQHG DQG GHFUHHG E\ KLP WR EH VR SHUIRUPHG DQG DFFRPSOLVKHG E\ WKHP DFFRUGLQJ WRWKHRSLQLRQDQGH[FHOOHQWMXGJHPHQW RI3GHULDFRZKRLQKLV&RQFRUGDQFHRI$VWURORJ\ZLWK'LYLQLW\SURYHV WKH)ORRG6HFWV6FKLVPVDQGRWKHUPRVWQRWDEOHDFFLGHQWVWREHVLJQLILHGLQ  +HDYHQ ORQJ EHIRUH DQG WKLV LV FRQILUPHG DOVR E\ *HUVRQ ZKR LQ KLV VHFRQG3URSRVLWLRQDFNQRZOHGJHG+HDYHQWREHDVLQGHHGLWLV WKH,QVWUXPHQW RI *RG ZKHUHE\ KH JRYHUQV WKLV FRUUXSWLEOH DQG LQIHULRU (OHPHQWDU\ ZRUOG $QG IXUWKHU VD\V KH (UUDYHUXQW KLF DOLTXL GLFHQWHV FRHOXP QLKLO DJHUH VHG 

  $VWURORJ\ILUVWUHYHDOHGWRWKHILUVWPDQ$GDPE\*RGKLPVHOIQRW'LDEROLFDORU LOOHJDOEXWPRVWODZIXODQGPRVWWREHGHVLUHGRIDOOQDWXUDO6FLHQFHV$JUHDWP HDQV WRGUDZXVWR*RGDQGDFTXDLQWXVZLWKKLV'LYLQHLQFRPSUHKHQVLEOHVHOI  

2QDFFRXQWRIWKLVDVWURORJ\LVQRWWREHGHQLHGWKDWLWLVDQREOHDQGDGPLUDEOHVFLHQFHWR WKHILUVWSDWULDUFK   3UREDEO\3LHUUHG·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·VIORRG6HFWV6FKLVPVDQGRWKHUDFFLGHQWVIRUHNQRZQDQGVLJQLILHGE\WKH +HDYHQV7KH+HDYHQVLV*RG·VLQIOXHQFHE\ZKLFKKHJRYHUQVDQGUXOHVWKLV (OHPHQWDU\:RUOG7KH+HDYHQVKDYHPDQ\DQGGLYHUVHYLUWXHVDQGREH\WKH &RPPDQGPHQWRI*RG   

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



 &+$3,97KDWWKH+HDYHQVDQG6WDUVKDYHLQIOXHQFHRQLQIHULRUDQG (OHPHQWDU\WKLQJV3URYHGE\6FULSWXUHRUWKHZRUGRI*RG$QG DFNQRZOHGJHGE\3KLORVRSKHUVDQGWKHOHDUQHGLQIRUPHUDJHV

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´$QGWKH\OHIWDOOWKHFRPPDQGPHQWVRIWKH/25'WKHLU*RGDQGPDGHWKHP PROWHQLPDJHVHYHQWZRFDOYHVDQGPDGHDJURYHDQGZRUVKLSSHGDOOWKHKRVWRI KHDYHQDQGVHUYHG %D DO´  ´)RUKHEXLOWXSDJDLQWKHKLJKSODFHVZKLFK+H]HNL DKKLVIDWKHUKDG GHVWUR\HGDQGKHUHDUHGXSDOWDUVIRU%D DODQGPDGHDJURYHDVGLG$KDENLQJRI ,VUDHODQGZRUVKLSSHGDOOWKHKRVWRIKHDYHQDQGVHUYHGWKHP$QGKHEXLOW DOWDUVLQ WKHKRXVHRIWKH/25'RIZKLFKWKH/25'VDLG,Q-HUXVDOHPZLOO,SXW P\QDPH$QGKHEXLOWDOWDUVIRUDOOWKHKRVWRIKHDYHQLQWKHWZRFRXUWVRIWKH KRXVHRIWKH/25'´   ´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µ   ´7KHQWKHPRRQVKDOOEHFRQIRXQGHGDQGWKHVXQDVKDPHGZKHQWKH/25'RI KRVWVVKDOOUHLJQLQPRXQW=LRQDQGLQ-HUXVDOHPDQGEHIRUHKLVDQFLHQWV JORULRXVO\µ   

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´7KH/25'RIKRVWVKDWKSXUSRVHGLWWRVWDLQWKHSULGHRIDOOJORU\DQGWREULQJ LQWRFRQWHPSWDOOWKHKRQRXUDEOHRIWKHHDUWKµ   ´)RULWLVDGD\RIWURXEOHDQGRIWUHDGLQJGRZQDQGRISHUSOH[LW\E\WKH/RUG *2'RIKRVWVLQWKHYDOOH\RIYLVLRQEUHDNLQJGRZQWK HZDOOVDQGRIFU\LQJWRWKH PRXQWDLQVµ   ´$QGLQWKDWGD\GLGWKH/RUG*2'RIKRVWVFDOOWRZHHSLQJDQGWRPRXUQLQJ DQGWREDOGQHVVDQGWRJLUGLQJZLWKVDFNFORWKµ   ´$QGLWZDVUHYHDOHGLQPLQHHDUVE\WKH/25'RIKRVWV6XUHO\WKLVLQLTXLW\ VKDOOQRWEHSXUJHGIURP\RXWLOO\HGLHVDLWKWKH/RUG*2'RIKRVWV7KXVVDLWK WKH/RUG*2'RIKRVWV*RJHWWKHHXQWRWKLVWUHDVXUHUHYHQXQWR6KHEQDZKLFK LVRYHUWKHKRXVHDQGVD\µ   ´$QGWKH\VKDOOKDQJXSRQKLPDOOWKHJORU\RIKLVIDWKHU VK RXVHWKHRIIVSULQJ DQGWKHLVVXHDOOYHVVHOVRIVPDOOTXDQWLW\IURPWKHYHVVHOVRIFXSVHYHQWRDOOWKH YHVVHOVRIIODJRQVµ   ´DQGOHVWWKRXOLIWXSWKLQHH\HVXQWRKHDYHQDQGZKHQWKRXVHHVWWKHVXQDQG WKH0RRQDQGWKHVWDUVHYHQDOOWKHKRVWRI KHDYHQVKRXOGHVWEHGULYHQWR ZRUVKLSWKHPDQGVHUYHWKHPZKLFKWKH/25'WK\*RGKDWKGLYLGHGXQWRDOO QDWLRQVXQGHUWKHZKROHKHDYHQµ   7KHLQIOXHQFHRIWKHVWDUVH[WHQGVWRWKHWHPSHUDWXUHRIPHQDVZHUHLQ/XQDWLF7RWKH VXFFHVVRIPHQ·VDIIDLUVD OVRWKRXJKGHQLHGE\VRPH7KHLQIOXHQFHRIWKHVWDUVDFNQRZOHGJHG E\3KLORVRSKHUV   ´$QGZKHQWKH\ZHUHFRPHWRWKHPXOWLWXGHWKHUHFDPHWRKLPDFHUWDLQPDQ NQHHOLQJGRZQWRKLPDQGVD\LQJµ   ´7KH\IRXJKWIURPKHDYHQWKHVWDUVLQWKHLUFRXUVHVIRXJ KWDJDLQVW6LV HUDµ   ´&DQVWWKRXELQGWKHVZHHWLQIOXHQFHVRI3OHL DGHVRUORVHWKHEDQGVRI 2ULRQ"µ  ´7KHKHDYHQVGHFODUHWKHJORU\RI*RGDQGWKHILUPDPHQWVKRZHWKKLV KDQGLZRUNµ   

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



 &+$396KRZLQJWKDWREVHUYDWLRQPD\EHPDGHRIWKH6WDUVPRWLRQV LQDQVZHUWRWKRVHWKDWKROGLWLPSRVVLEOHIRUDQ\PDQLQKLVGD\VWR REVHUYHWKHSDUWLFXODUFRQILJXUDWLRQVRIHYHU\3ODQHWZLWKWKHIL[HG 6WDUVDQGZLWKRQHDQRWKHUDVDOVRWKDWWKHUHE\ZHPD\GLVFHUQWKHLU LQIOXHQFHLIZHKDYHDQ\FDSDFLW\



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

  2EVHUYDWLRQUHDFKHVXVWKHVWDUVLQIOXHQFH   7KDWWKHWUXHQ DWXUHRIWKH6WDUVPD\EHNQRZQDQGKRZ   7KHSRZHURIWKH3ODQHWV   

PXFKWKHOLJKWRIWKH3ODQHWVWRXVLVJUHDWHUDQGWKHLUPRWLRQVZLIWHUE\VR PXFKDUHWKHLURSHUDWLRQVQHFHVVDULO\WKHPRUHDSSDUHQWDQGPDQLIHVWWRXV RURXUVHQVHZHSUHIHU9HQXVEHIRUH0HUFXU\IRUWKDWWKRXJKKHEHVZLIWHU \HWLVVKHWKHJUHDWHUDQGVRFRQVHTXHQWO\RIPRUHHIILFDF\DQGWKHUHDVRQ ZK\0DUVLVRIOHDVWQRWHRUPRVWREVFXUHXQWRXVLVIRUWKDWKHLVOHVVWKHQ 6DWXUQDQG-XSLWHUZKRDUHSUHIHUUHGEHIRUHKLPDQGPRYHVLQVRODUJHDQG JUHDWDQ(SLF\FOHWKDWKHVHOGRPUDQFRXQWHUVZLWKWKH6XQ   $QGZHNQRZWKDWWKH0RRQDV,KDYHVDLGLQFKDSWHURIP\/X[ 9HULWDWLV VHFWLRQ   ILQLVKHV KHU FRXUVH WKURXJK WKH=RGLDF HYHU\  GD\V DQGVRPHRGGKRXUVYL]WZHOYHWLPHVLQD\HDUE\ZKLFKZHPD\DQGGR SODLQO\ SHUFHLYH KHU FRQILJXUDWLRQV YL] &RQMXQFWLRQ 6H[WLOH 7ULQH 6TXDUH DQG 2SSRVLWLRQ ZLWK HYHU\ 6WDU LQ WKH ZKROH +HDYHQV ERWK IL[HG DQG HUUDQW DQG WKHUHE\ WKHLU QDWXUH DQG PL[WXUH RIWHQ WR EH NQRZQ DQG GLVFHUQHGDQGWKDWYHU\FHUWDLQO\  7KH 6XQ 9HQXV DQG 0HUFXU\ DOVR GR HYHU\ \HDU RQFH ILQLVK WKHLU FRXUVHVRWKDWDOVRKHUHE\HYHU\\HDUZHPD\DQGGRSODLQO\VHHDQGILQG RXWWKHLURZQVSHFLILFQDWXUHDQGWKHSURSHUWLHVRIWKHRWKHU6WDUVYL]IL[HG DVDOVRWKHLUPL[HGXUHVDQGWKDWEHIRUHDQ\VHQVLEOHHUURUFDQEHPDGHE\ WKHPRWLRQRIWKH6WDUU\6SKHUH   $JDLQ 6DWXUQ -XSLWHU DQG 0DUV DOWKRXJK WKH\ DUH E\ UHDVRQ RI WKHLUVXSHULRULW\ RIVORZHUPRWLRQ\HWGRHVLWQHLWKHUDQ\ZD\VKLQGHUEXW WKDW WKHLU HIIHFWV PD\ HDVLO\ DQG VRRQ DV DOVR WKHLU PL[HGXUHV DPRQJ WKHPVHOYHV DQG WKH IL[HGVWDUV  EH NQRZQ IRU WKRXJK 6DWXUQ EH  \HDUV VRPHRGGPRQWKVDQGGD\VPDNLQJKLVUHYROXWLRQRUUXQQLQJKLVFRXUVH WKURXJKWKHWZHOYH6LJQVRIWKH=RGLDF-XSLWHUWZHOYH\HDUV0DUVWKUHH\HDUV \HW E\ UHDVRQ RI WKHLU ORQJ FRQWLQXDQFH LQ HYHU\ VLJQ DV DOVR E\ WKHLU UHWURJUDGDWLRQVVWDWLRQVDQGGLUHFWLRQVFRPLQJRIWHQWRWKHFRQMXQFWLRQRI WKH6WDUVLQWKH6LJQZKHUHLQWKH\DUHDQGWRWKH$VSHFWVRIRWKHUVLQRWKHU 6LJQV ZH FDQQRW EXW RIWHQ DQG SODLQO\ EH WDXJKW WR SHUFHLYH WKH VHYHUDO LQIOXHQFHRIHYHU\VWDULQWKHZKROH=RGLDFZLWKRXWWKHOHDVWVHQVHRUHUURU HVSHFLDOO\ VLQFH WKH /XPLQDULHV DOVRWKH6XQDQG0RRQLQWKHPHDQWLPH FRPH WR WKHP DQG VR PDNH FRPPL[WXUH RI WKHLU LQIOXHQFH \HDUO\ DQG PRQWKO\   2IDOOZKLFKWKH6WXGHQWLQ$VWURORJ\FDQQRWEHLJQRUDQWLIKHEXW ZDULO\ REVHUYH KLV $XWKRUV ZKR KDYH VXIILFLHQWO\ DQG ODUJHO\ GHFODUHG WKHPDOOXQWRKLPDVWKH\E\REVHUYDWLRQDQGIUHTXHQWSUDFWLFHKDYHERWK EHHQIRXQGRXWDQGDSSURYHGE\WKHPWREHPRVWHIIHFWXDOO\WUXHIURP$JH WR $JH \HW LI \RXEHVWVRFXULRXVDV,FRXOGZLVK\RXZHUHDQGDOORWKHU LQJHQLRXVVRXOV DVWKDW\RXZLOOPDNHSDUWLFXODUREVHUYDWLRQWKHUHRI\RXU VHOI \RX PD\ VHH WKDW EHIRUH WKH 6WDUU\ +HDYHQ PRYHV D GHJUHH 6DWXUQ ZKR LV WKH YHU\ VORZHVW RI WKH 3ODQHWV ILQLVKHV KLV FRXUVH DQG FRPHV WR   7KHVLJQLILFDWLRQVRIWKHLQIOXHQFHRIWKH6WDUVDUHVRRQIRXQGRXWLQUHODWLRQWR WKHLUFRQILJXUDWLRQVZLWKWKH0RRQZLWKWKH6XQ9HQXVDQG0HUFXU\   7UDYHOOLQJ   ,QUHODWLRQWRWK HFRQILJXUDWLRQVRI6DWXUQ-XSLWHUDQG0DUVZLWKWKHP   7KH,QIOXHQFHRIWKH6WDUVWDXJKWDWODUJHE\IRUPHU$VWURORJHUV   

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



 &+$39,7KDWWKHYDULDWLRQRIWKH+HDYHQVIURPWKHLUSODFHVZKHUHLQ WKH\ZKHUHLQ3WROHP\·VWLPHRUDWWKHILUVW&UHDWLRQFDXVHVQRHUULQJ LQ$VWURORJLFDO-XGJHPHQWV



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·VWLPHQRWLQGHHGVLQFHWKHIXOO &UHDWLRQ,VDQ\FDXVHRIHUURULQ$VWURORJHUVM XGJPHQWVLQWKLVRXU$JH   

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·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|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·V WLPH EXW WKLV KLQGHUV RU YDULHV QR PRUH WKH ,QIOXHQFH RI WKH +HDYHQV IURP WKHLU QDWXUDO SURSHUWLHV DQG LQFOLQDWLRQV WKHQ WR DIILUP D )DJJRW RU DQ\ RWKHU FRPEXVWLEOH WKLQJ ZLOO QRW EXUQDOWKRXJKLWEHSXW LQWR WKH ILUH EHFDXVH LW LV QRW LQ D &KLPQH\ RU DQ\ VXFK ZKLPVLFDO DVVHUWLRQ FZKHUHIRUHOHWXVQRZVKRZWKHSRZHURIWKHLU,QIOXHQFHDQG VRGLVFKDUJHRXUIRUPHUSURPLVHVLQFHLWKHUHVRILWO\RIIHUVLWVHOI 

  0DQLIHVWHGE\FRPPRQH[SHULHQFH   )DUWKHU\HWPDQLIHVW   :K\WKH'R J'D\VDUHQRWDOO\HDUVDOLNHFRQWDJLRXV   $WKLUGPDQLIHVWDWLRQWKHUHRI   %XQGOHRIWZLJVXVHGWRVHWILUHV   

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



 &+$39,,6KRZLQJWKHSRZHUIXOLQIOXHQFHRIWKH6WDUVDQG3ODQHWV DQGKRZIDUZHDUHWRKDYHUHJDUGWRWKHIL[HG6WDUV



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 QXVWKHKHDGRIWKH&DWHFKHWLFDO6FKRRO &OHPHQWEHFDPHDQLQVWUXFWRUDURXQGDQGHYHQWXDOO\EHFDPHWKHVFKRRO V OHDGHU+HOHIW$OH[DQGULDDURXQGDVDUHVXOWRIWKHSHUVHFXWLRQXQGHU 6HYHUXVDQGGLHGDIHZ\HDUVODWHUDIWHUEXWE HIRUH LQ$VLD0LQRU  

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 GDJRJXVDQGDVHULHVRIVKRUWHUZRUNV7KH $GGUHVVDQGWKH3 GDJRJXVZHUHGHVLJQHGWRLQWURGXFHQRQ&KULVWLDQV WRWKH IDLWKWKHIRUPHULVDFROOHFWLRQRISKLORVRSKLFDOUHIOHFWLRQVDQGQRWHV   7KDWWKH6XQKDVLQIOXHQFH   ´DQGIRUWKHSUHFLRXVIUXLWVEURXJKWIRUWKE\WKHVXQDQGIRUWKHSUHFLRXVWKLQJV SXWIRUWKE\WKHPRRQµ   ´$QG*RGVDLG/HWWKHUHEHOLJKWV LQWKHILUPDPHQWRIWKHKHDYHQWRGLYLGHWKH GD\IURPWKHQLJKWDQGOHWWKHPEHIRUVLJQVDQGIRUVHDVRQVDQGIRUGD\VDQG \HDUVµ  1RHQGWRWKH0RRQ   7KH0RRQREMHFW$QVZHU:K\WKHUHLVQRWLGHVRUVXFKDVFDQKDUGO\EHGLVFHUQHGLQWKH $WODQWLF VHDV:K\WKHUHDUHQRWLGHVLQIUHVKZDWHUVDQGZK\LQVRPHSODFHVWKHUHDUHQR WLGHV  

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²LHFULWLFDOGD\V   2QHZKRFDVWUDWHVVRZVLQRWKHUZRUGVRQHZKRKDVDXVHOHVVRFFXSDWLRQ   &RQUDGRU.RQUDG*HVQHU6 ZLW]HUODQG ERUQ0DUFK=ULFKGLHG'HF =ULFK ZDVD6ZLVVSK\VLFLDQDQGQDWXUDOLVWEHVWNQRZQIRUKLVV\VWHPDWLF FRPSLODWLRQVRILQIRUPDWLRQRQDQLPDOVDQGSODQWV *HVQHUZDVSUREDEO\ WKH JUHDWHVWQDWXUDOLVWRIKLVDJH%HWZHHQDQG*HVQHUSXEOLVKHGDIRXU  

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·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´WKHODQJXDJHRILWVFRXQWU\REH\VRUGHUVUHPHPEHUVGXWLHVLWKDVOHDUQHGOLNHV DIIHFWLRQDQGKRQRXUV PRUHLWKDVYLUWXHVUDUHLQPDQ KRQHVW\ZLVGRPMXVWLFH  DQGUHVSHFWIRUWKHVWDUVDQGUHYHUHQFHIRUWKHVXQDQGWKHPRRQµ   7KHWKLUGGD\DIWHUWKHIXOO0RRQDIHPDOHIRDOERUQDWWKHWLPHRIWKHHFOLSVHRUFKDQJHRI WKH0RRQOLYHQRWORQJDQGZK\   7KRVHERUQDWWKHWLPHRIDQ(FOLSVHRU&KDQJHRIWKH 0RRQOLYHQRWORQJDQGZK\   )RXQWDLQRIOLIH   

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

FRQWDLQHG LQ D TXDGUDQJOH VR LV WKLV PRVW FHUWDLQ DQG FRQVHTXHQWO\ DQ DVVXUHGWUXWK  $QG WKXV PXFK VKDOO VXIILFH DW WKLV WLPH IRU WKH PDQLIHVWDWLRQDQG FOHDULQJ WKDW WKH 0RRQ KDV LQIOXHQFH RYHU DV ZHOO PHQ EUXLWEHDVWV VHQVLWLYHVDQGYHJHWDEOHVSODQWVKHUEV FDVRYHUWKLQJVZLWKRXWOLIHYL] RI WKH VHD FDXVLQJ DV KDV EHHQ VDLG  LWV HEELQJ DQG IORZLQJ KXPRXUV LQ PHQ DQG ZRPHQ GLVHDVHV FULWLFDOGD\V F , PLJKW KHUH EXW IRU WHGLRXVQHVVGHOLYHUXQWR\RXWKHILYHIROGJRYHUQPHQWRIWKHPRQWKE\WKH 0RRQYL]RIWKHODWLWXGHRIWKH0RRQDSSDULWLRQV\QRGLFDOSHULRGLFDODQG PHGLFLQDO EXW RI WKHVH *RG ZLOOLQJ  , PD\ KHUHDIWHU VD\ VRPHZKDW DQG WKDWDWODUJH*RGVSDULQJPHOLIHDQGRSSRUWXQLW\ F,QWKHLQWHULP,VD\ OHWZKDWKDVEHHQVDLGVXIILFHDVWRWKHSURYLQJWKHLQIOXHQFHRIWKH6XQDQG 0RRQDQGQRZOHWXVKHDUZKDWZHDUHWDXJKWE\6DWXUQ   1RWWRLQVLVWORQJWKHQRQWKH3ODQHWVVLQFHWKHLULQIOXHQFHLVQRW E\WKHUDWLRQDO LQWKHOHDVWGHQLHGDQGZHDUHDQRQWRKDQGOHWKHLUHIIHFWV DWODUJHZHVKDOOWKHUHIRUHEHDVEULHIDVZLWKFRQYHQLHQFHPD\EHLQP\ /X[ 9HULWDWLV FKDS  6HFW3 , KDYH GHFODUHG KRZ WKDW &OLPDFWHULFDO \HDUV KDSSHQ DQG DUH FDXVHG E\ WKH SURWHFWLRQ RI WKH3ODQHWV DQG ILUVW KRXVHWRWKH6TXDUHDQG2SSRVLWLRQRIWKHLUSODFHVLQ1DWLYLWLHVEHLQJPRUH HVSHFLDOO\RFFDVLRQHGE\WKHPRWLRQRI6DWXUQKHKDYLQJDVPXFKSRZHULQ WKHGHFUHHVHYHUDORI\HDUVDVWKH6XQKDVLQPRQWKVRUWKH0RRQLQGD\V KHFRPLQJHYHU\VHYHQ\HDUVWRWKH6TXDUHRU2SSRVLWLRQRIKLVSODFHLQWKH 5DGL[ RI DQ\ PDQV 1DWLYLW\ $JDLQ WKHUH LV QR VNLOIXO 3K\VLFLDQ WKDW LV DFTXDLQWHGDQGYHUVHGWKRURXJKO\LQKLV$UWDV*DOHQDQG+LSSRFUDWHVVD\ QRQH DUH EXW ZKR DUH VNLOOHG DQG DFTXDLQWHG ZLWK DQG LQ$VWURORJ\  EXW NQRZV WKDW KH DIWHU WKH 5HYROXWLRQ RI WKH 6XQ EHFRPHV FKLHI UXOHU DQG RUGHUHU RI WKH 'LVHDVH DQG FULWLFDO GD\V DQG PDQ\ WLPHV E\ KLV FRQILJXUDWLRQVZLWKWKH0RRQKLQGHUVWKH&ULVLVLQDFXWHDQGVKDUS'LVHDVHV DQG REVHUYDWLRQ DV KDV EHHQ VDLG DQG WKH PDQQHU WDXJKW ZLOO FOHDUO\ HYLQFHDOOWKHLJQRUDQWWKDW6DWXUQLVFROGDQG0HODQFKRO\DVWKH6XQLVKRW DQG LQFOLQLQJ WR PLUWK IRU DV KH LV RSSRVLWH WR WKH6XQ LQ QDWXUH VRLVKH RSSRVLWHLQUHODWLRQWRWKHVLJQVDQGPDQVLRQVRIWKH+HDYHQKHUXOHVDQG WKHUHIRUHLQFOLQHVDOZD\VWRFROGDQGWKHVGRHVWRKHDWZKHQFHWKHVLQ 1EHLQJ WKH KRXVH RI M DQG RSSRVLWH WR Q KLV RZQ KRXVH WKH ZHDWKHU LQFOLQHV PRUH WR FROG $QG E\ UHDVRQ WKH OLJKW DQG VR FRQVHTXHQWO\ WKH LQIOXHQFHRIWKH6XQDQGWKH0RRQLVPRVWPDQLIHVWDQGDSSDUHQWXQWRRXU VHQVH \HW , VD\ WKRXJK WKH RWKHU VWDUV E\ UHDVRQ RI WKHLU REVFXULW\ DQG UHPRWHGLVWDQFHIURPXVFDQQRWVRHDVLO\EHGLVFHUQHGDVKRUWWLPHVSHQWLQ WKHREVHUYDWLRQWKHUHRIZLOOVRRQFOHDUWKHWUXWKRIWKHLUVHYHUDOLQIOXHQFHV DQGLQFOLQDWLRQV%XWWRVSHDNPRUHSODLQO\DQGKRPHWRWKHPDWWHUGRZH QRW DW HYHU\ &RQMXQFWLRQ 6TXDUH DQG 2SSRVLWLRQ RI WKH /XPLQDULHV ZLWK KLP ILQGDOOLQFOLQDWLRQRIWKH$LUWRPRLVWXUHDQGFROG"DQGWKDWLWQHYHU IDLOV EXW DW WKH 6TXDUH 2SSRVLWLRQ RU &RQMXQFWLRQ RI WKH6XQ DQG KLP H[FHSWWKHERG\RI-XSLWHURU0DUVLQWHUSRVHRUVRPHRIWKHLU$VSHFWV FROG   1RLV\EHDVWV   7KHLQIOXHQFHRI6DWXUQSURYLGHG   7KHFDXVHRI&OLPDWHULFDO\HDUV   7KHSRZHURI6DWXUQLQGLVHDVHV 

 

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´%ODFN0RQGD\µ 1LFKRODV&XOSHSSHU SUHGLFWHG´$OOWKHHYLOVRIWKHVZRUGVHGLWLRQIDPLQHDQGSHVWLOHQFHFDQGRIRU (XURSHPD\EHH[SHFWHGIURPWKLVHFOLSVHµ:LOOLDP/LOO\LQKLVERRN $QQXV 7HQHEURVXV FRPPHQWHG¶«LWGHVLJQ VRUSUHGLFWVDQDEVROXWHIDOOLQJRXWRUEUHDFK RIIULHQGVKLSEHWZL[WXVDQGWKH'XWFK«IDPLQHLQ,UHODQGPRUWDOLW\DQGSRYHUW\ LQ6FRWODQG«RIDSODJXHDGHDWKRIPHQLQ(QJODQG,UHODQGDQG6FRWODQG·,Q 0D\ZDUEURNHRXWEHWZHHQWKH(QJOLVKDQGW KH'XWFK&KDUOHV,,IOHG 6FRWODQGIRU)UDQFHDIWHUWKHODVW5R\DOLVWVWURQJKROG'XQHWWDU&DVWOHFROODSVHGLQ 0D\RI   

DQRQ ZKHQ ZH FRPH WR WUHDW RI (FOLSVHV &RPHWV *UHDW &RQMXQFWLRQV DQG %OD]LQJVWDUV ZKHUH ZHVKDOOVKRZDQGWHDFKWKHLUQDWXUHDQGLQIOXHQFH RYHUDOOHDUWKO\WKLQJVZKDWVRHYHU,VKDOOIRUWKLVFRQVLGHUDWLRQDVDOVRIRU WKDWZHDUHKHUHLQWKLVSODFHVWLOOWRWUHDWRIWKHLQIOXHQFHRIWKH+HDYHQV DQG WKHQ WR VSHDN D ZRUG RU WZR RI WKDW 'LVFRXUVH ODWH SXEOLVKHG LQ SUHWHQFHRID5HSO\WRE\/X[YHULWDWLVOHDVWWKLV7UHDWLVHJURZWRRELJFUDYH \RXUSDUGRQWLOODQRQ  



 &+$39,,,6KRZLQJWKH,QIOXHQFHRIWKH+HDYHQVRQ,QIHULRUDQG (OHPHQWDU\%RGLHV

,Q WKLV SODFH WKHQ ZH DUH WR WUHDW RI WKH ,QIOXHQFH RI WKH +HDYHQV \RX KDYH DOUHDG\ KHDUG KRZ IRU PDWWHU RI SOHQW\ RU VFDUFLW\ WKH\ DUH WKH LPPHGLDWHFDXVHVQH[WXQGHU*RGDQGWKDWSURYHGDQGZDUUDQWHGERWKE\ 6FULSWXUH DQG WKH /HDUQHG LQ IRUPHU $JHV IRU WKHQ WKDW (FOLSVHV 5HYROXWLRQV RI WKH :RUOG &RPHWV %OD]LQJVWDUV DQG JUHDW &RQMXQFWLRQV WUHDW RI WKH $FFLGHQWV JHQHUDO RI DOO 1DWLRQV .LQJGRPV DQG /DQJXDJHV WKHUHLVQRWKLQJPRUHWUXHYL]SOHQW\VFDUFLW\KHDOWKSODJXHZDUVSHDFH DOWHUDWLRQRI$LUDQGPXWDWLRQVLQWKH/DZV&XVWRPV5LJKWVDQG3ULYLOHJHV RI 1DWLRQV DQG WR EH VKRUW RI WKLQJV DSSHUWDLQLQJ WR WKH OLIH RI PDQ LQ D 1DWXUDOZD\ F   $QG LI ZH KDYH UHJDUG WR 3WRORP\ OLEFDS   GH 4XDGU ZH VKDOO ILQG WKDW KH GRHV QRW RQO\ UHIHU WKH 1DWXUH DQG &XVWRP RI 1DWLRQV XQWRWKHJHQHUDO,QFOLQDWLRQDQG1DWXUHRIWKH7ULSOLFLW\WKH\DUHXQGHUEXW WKHLQFOLQDWLRQVRIWKHLUPLQGSDUWLFXODUO\DVZHOODVWKHVKDSHDQGIRUPRI WKHLU ERGLHV DV DOVR WKHLU PDQQHUV DQG NLQG RI OLIH DV WKRVH ZKR DUH LQKDELWDQWVRIWKH7RUULG=RQHDVKDVEHHQVDLG DUHEODFNKDYLQJDOVREODFN DQGFULVSHGKDLURIDPHDQVWDWXUHDQGRIDKRWFRQVWLWXWLRQDQGRIDILHUFH DQGFUXHOVSLULWSURSWHUORQJDP DVVLGXDPVROLVPRUDPLQHRUXPUHJLRQLEXVE\ UHDVRQRIWKHORQJDQGFRQVWDQWVWD\RIWKH6XQLQWKDW5HJLRQRU&OLPDWH  QLJUD VXQW FRUSRUD HRUXP TXLD 6RO SHU =HQLWK VXRUXP FDSLWXP FXUULW HRVTXH FRPEXULW WKH\ DUH EODFN RYHU DOO WKHLU ERG\ E\ UHDVRQ WKH6XQ FRQVWDQWO\ WUDQVLWVWKH=HQLWKDQGVRVFRUFKHVWKHPWKDWWKH\DUHRIWKDWKXH   $QG WKHVH ,QKDELWDQWV RI WKH6RXWK WR EH RI D EHWWHU DQG TXLFNHU ZLWDQGPRUHLQJHQLRXVDQGDSWHUWROHDUQLQJHVSHFLDOO\WKHVWXG\RIWKH 6WDUV3URSWHUFLUFXOLVLJQRUXP VWHOODUXPHUUDWLFDUXPORFR=HQLWKHRUXPFDSLWXP SURSLQTXLWDWHPEHFDXVHWKHLUYHUWLJDOSRLQWLVQHDUWKH=RGLDFLQZKLFKWKH VLJQV DUHDQGXQGHUZKLFKWKH3ODQHWVPRYH+HDOVRIDUWKHUWHDFKHVWKDW 

  6\QRQ\PIRUFRPHW,WLVXQFOHDUKRZ5DPHVH\GLIIHUHQWLDWHVEHWZHHQWKHWZR WHUPV  $OOJHQHUDODFFLGHQWVZKDWVRHYHUDUHDQGPD\ EHNQRZQE\UHYROXWLRQVRIWKH:RUOG (FOLSVHV&RPHWVJUHDW&RQMXQFWLRQVDQG%OD]LQJ6WDUVLQDQDWXUDOZD\   2IWKRVHZKROLYHLQWKH7RUULG=RQH   2IWKHLQKDELWDQWVRIWKH6RXWK   2QDFFRXQWRIWKHFORVHQHVVRIWKHLU=HQLWKWRWKHFLUFOHVRIWKHV LJQVDQGWKH ZDQGHULQJSODQHWV   

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
ZKLFKLVWKHPDLQVFRSHRI3KLORVRSKHUVODERXUVZKRDUHQHYHUFRQWHQWHG WR NQRZ WKLV WKLQJ LV RI VXFKDQGVXFKDQLQFOLQDWLRQWHPSHUDQGQDWXUH EXWWKHUHDVRQWKHUHRI EXWNQRZVWKHWUXWKRIWKLVSRLQWZKHUHIRUH,VKDOO UHQGHU P\ VHOI PRVW ZHDN ORQJHU KHUHRQ WR LQVLVW VLQFH QRW RQO\ WKH /HDUQHG EXW DOVR HYHU\ RUGLQDU\ 5HDGHU RI+LVWRULHVLIZLWKGLOLJHQFHKH KDVREVHUYHGZKDWKHKDVUHDG FDQWHVWLI\WKHVDPH  , PLJKW DOVR KHUH VKRZ \RX ZKDW WKH VDPH 3WROHP\ VD\V RI WKH ,QKDELWDQWV RI WKH (DVW DQG :HVW EXW WKHQ , IHDU , VKRXOG WRR PXFK WUDQVJUHVV P\ ERXQGV DV DOVR KRZ WKH ZKROH HDUWK LV GLYLGHG LQWR SDUWV DQGKRZJRYHUQHGE\WKHILHU\HDUWK\DLU\DQGZDWHU\WULSOLFLWLHVDQGWKH UHDVRQVRIWKHVHYHUDOLQFOLQDWLRQVFXVWRPVODZVPDQQHUVDQGWHPSHUVRI DOO 1DWLRQV .LQJGRPV &RXQWULHV DQG 3URYLQFHV EXW , VKDOO KHUH IRU EUHYLWLHV VDNH UHIHU \RX WR WKH DIRUHVDLG VHFRQG DQG WKLUG FKDSWHU RI KLV VHFRQG%RRNRIKLV4XDGULSDUWLFH   )RU WKHUH KH GRHV QRW RQO\ VKRZ \RX XQGHU ZKDW VLJQ RI WKH =RGLDFHYHU1DWLRQDQG&RXQWU\LVEXWDOVRWKDWWKRVHZKRDUHXQGHUWKH ILHU\ WULSOLFLW\ YL] (XURSH DUH E\ UHDVRQ RI WKH WULSOLFLW\ WKH\ DUH XQGHU EHLQJ LQ WKH 1RUWKZHVW SDUW RI WKH HDUWK DQG E\ UHDVRQ RI WKH 3ODQHWV UXOLQJWKHWULSOLFLW\ RIPDJQDQLPRXVVSLULWVJLYHQWRH[SORLWVDQGIHDWVRI :DUDQGWUXO\QRGLVSDUDJHPHQWWRRWKHU1DWLRQVWKLVRXU/DQGRI%ULWWDQ\ PD\ FRPSDUH ZLWK WKH JUHDWHVW &RQTXHURUV LI QRW IDU WUDQVFHQG WKHP  $QJOLD $ULHVH  0DUWH DVVLPXODQWXU LGHRTXH EHOOLFRVH (QJODQG LV XQGHU $ULHV DQG0DUVDQGWKHUHIRUHDUHWKH,QKDELWDQWVDQG1DWLYHVWKHUHRIDGGLFWHGWR EHH[SHUWLQ:DURUIHDWVRI$UPV,RPLWKHUHWRLQVLVWRQHYHU\SDUWLFXODU 5HJLRQLQWKLVSDUWRIWKHZRUOGDVKHWKHUHGHFODUHVLWSDUWLFXODUO\QDPLQJ HYHU\5HJLRQXQGHUHDFKVLJQRIWKH=RGLDFEXWUHIHU\RXWKHUHXQWRRQO\LQ WKLVSODFHZHGHVLUHEXWWRVDWLVI\RXU5HDGHUZLWKVRPHSDUWLFXODUVWKDWKH PD\ EH DVVXUHG RI WKH YHULW\ RI WKH VWURQJ LQIOXHQFHV DQG PDQLIHVW RSHUDWLRQV RI WKH &HOHVWLDO 6LJQV 6WDUV DQG 3ODQHWV RYHU DOO .LQJGRPV 1DWLRQV F    $JDLQ LQ WKH VHFRQG SDUW RI WKH :RUOG YL] 6RXWKHUQ ZKLFK KH QRPLQDWHVWREH$VLDWKHJUHDWHUEHLQJXQGHUWKHHDUWK\WULSOLFLW\KHVKRZV WKDW DPRQJ WKH UHVW RI WKH 5HJLRQV DQG SODFHV VXEMHFW WR WKDW WULSOLFLW\  WKRVHZKRDUHJRYHUQHGE\7DXUXVEHLQJWKHKRXVHRI9HQXV DUHJHQHUDOO\ HIIHPLQDWHDQGGHOLFDWHJLYHQWRWKHLUSOHDVXUHHVSHFLDOO\WRWKHJDPHVDQG VSRUWVRI9HQXVZKHUHIRUHWKH\JRVWLOORSHQEUHDVWHGOLNHZLVHWKRVHXQGHU WKHVLJQ9LUJREHLQJWKHKRXVHH[DOWDWLRQDQGMR\RI0HUFXU\ DUHH[TXLVLWH LQDOONLQGVRIJRRGOHDUQLQJDQGREVHUYHUVRIWKHPRWLRQVRIWKH6WDUVDQG WKRVHUXOHGE\&DSULFRUQEHLQJWKHSURSHUKRXVHRI6DWXUQ DUHRIIRUPDQG VKDSH FRPPRQO\ GHIRUPHG RI FRQGLWLRQ VRUGLG DQG RI LQFOLQDWLRQ ILHUFH EXWWKLV,FRQFHLYHE\UHDVRQLWLVWKHH[DOWDWLRQRI0DUV  $QGLIZHKDYHUHJDUGWRWKHWKLUGSDUWRIWKH:RUOGYL]1RUWKHUQ RUEHWZL[WWKH1RUWKDQG(DVWDVVLJQHGWRWKH$LU\7ULSOLFLW\DVDOVRWRWKDW SDUWXQGHUWKHZDWHU\ZHVKDOODEXQGDQWO\EHVDWLVILHGRIWKHXQGHQLDEOH   2IWKHLQKDELWDQWVRI(XURSHRUWKRVHXQGHUWKHILHU\WULJRQ   2IWKHLQKDE LWDQWVRI$VLDWKHJUHDWHUDQGWKHUHDVRQRIWKHLUVHYHUDOLQFOLQDWLRQV   

WUXWKRIWKHLQIOXHQFHRIWKH&HOHVWLDO3ODQHWVDQG&RQVWHOODWLRQVLQWKHVLJQV ZKHUHIRUHLQWKLVSODFHEHFDXVHDV,KDYHRIWHQVDLG ,GHVLUHQRWWREHWRR WHGLRXV,VKDOOUHIHU\RXWRWKDWOHDUQHG3WROHP\KLPVHOIDQGQRZSURFHHG 



 &+$3,;6KRZLQJWKDWWKH,QIOXHQFHVRIWKH+HDYHQVDQG UHGRPLQDQF\RIWKHVWDUVLQHYHU\&OLPDWHLVWKHFDXVHRIWKHVHYHUDO /DZVDQG&XVWRPVRIWKH3HRSOHWKHUHLQ



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·V ZLYHV WKHQ WKHLU RZQ PDQ\ KDYH WKHLU ZLYHV FRPPRQ IRU RQH DQRWKHU DQG IRU WKH PRVW SDUW WKH\ GHOLJKW LQ SLFWXUHV DQG JR GUHVVHG   :RUOGFDWDVWURSKH   7KHODZVDUHRUGHUHGDQGFRQVWLWXWHGDFFRUGLQJWRWKHLQFOLQDWLRQVRIWKHSHRSOHWKDWPDNH WKHPLVKHUHE\IXUWKHUSURYHG   3WROHP\7HWUDELEORV,,VHFWLRQ´ WKH\DUHYHU\IUHTXHQWDQGHQWKXVLDVWLFLQ FRXSOLQJVRPXFKVRWKDW WKHLUPDUULDJHVDUHGRQHE\IRUFHRUE\UDSHPDQ\WLPHV WKHLUNLQJZLOOWDNHKLVVH[XDOSOHDVXUHZLWKVRPHRQHHOVH VZLIHEHIRUHKHUKXVEDQG GRHVDQGVRPHWLPHVWKH\KDYHZLYHVLQFRPPRQDPRQJWKHPVHOYHV7KH\DOVR ORYHGHFRUDWLRQDQGRUQDPHQWDQGGUHVV WKHPVHOYHVLQWKHIHPLQLQHIDVKLRQRQ DFFRXQWRI9HQXVµ   

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

QDWXUDO LQIOXHQFHV DQG PRWLRQV RI WKHVWDUV ZLWKRXW RIIHQFH WR*RG DV WKH XVHRI+HUEV'UXJVDQG0LQHUDOVIRU3K\VLFRUWKHFXUHRIVXFKDQGVXFK GLVHDVHVZKLFKDWWKHILUVWZDVE\WKHLQIOXHQFHRIWKH&HOHVWLDOERGLHVE\ ZKLFKWKH\DUHUXOHG IRXQGRXWIRULILWEHDVLQWRVWXG\DQGNQRZQDWXUH WKHUH LV QR VWXG\ ODZIXO DQG LI QRW $VWURORJ\ PXVW WKHQ QRW RQO\ EH DFFRXQWHGODZIXODQGJRRGEXWWKHPRVWEHQHILFLDO DQGEHVWRIDOOVWXGLHV 
 &+$3;&RQWDLQLQJWKHUHVROXWLRQRIWKHPDLQ2EMHFWLRQVDJDLQVWWKLV GLYLQH6FLHQFH



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
RQHZHUHGLVSRVHGWREHDVULGLFXORXVLQDQVZHULQJDVVRPHPHQDUHLQ TXHVWLRQLQJLWPLJKWEHDYHUUHGIRURXJKWWKH\FDQVD\WRWKHFRQWUDU\WKDW WKH JRRG FRQVWHOODWLRQV DW WKH HQWUDQFH RI VRPH KRUVHV LQWR WKH ZRUOG PDNHVWKHPWREHWHQGHGUXEEHGNHSWZHOODQGGHOLFDWHO\ZLWKOLWWOHRUQR WRLO DQG ODERXU RU VWULSHV DQG DJDLQ WKH PDOHYROHQW FRQVWHOODWLRQV GR FDXVH VRPH DJDLQ WR EH NHSWLQ SHUSHWXDO VODYHU\ KDUG XVDJH DQG VWULSHV EXWWKXVWRFRPSDUHKRUVHVZLWKPHQLVEXWWRUHQGHURXUVHOYHVZRUVHWKHQ $VVHV RU WKH EUXWHVW RI FUHDWXUHV VLQFH \RX VHH WKH\ ZHUH IURP WKH ILUVW FUHDWLRQGHVWLQHGWRWKHXVHRIPDQDQGWREHVXERUGLQDWHWRKLVGRPLQLRQ DQG ZLOO ZKLFK LV LQGHWHUPLQDWH DQG VR FRQVHTXHQWO\ RXW RI WKH YHUJH RI $VWURORJ\DV\RXPD\VHHDWWKHODWWHUHQGRIWKLV7UHDWLVH   $JDLQ VRPH GHPDQG ZKHWKHU RU QR 'RJV &KLFNHQV DQG VXFK OLNHPXVWQHHGVKDYHRQHDQGWKHVDPHHQGDQGOLIHRUZKHWKHURWKHUZD\V $VWURORJ\ EH RI DQ\ YDOLGLW\ RU FHUWDLQW\ F 7UXO\ , IHDU , GR WR\ LQ UHFRUGLQJ WKHVH YDLQ 2EMHFWLRQV DQG DQVZHULQJ WKHUHXQWR GLJUHVV PRUH IURP WKHRUGLQDU\ERXQGVRI5HDVRQWKHQWKH$XWKRUVWKHUHRIZKHQVWLOO ZKDW KDV EHHQ VDLG LQ WKH IRUPHU REMHFWLRQPD\DQGLVVXIILFLHQWWRUHIHOO WKLV DOVR EHVLGHV LW UHPDLQV WKDW WKHVH 2EMHFWRUV SURYH DOO WKH &KLFNHQV WKH\VSHDNRIWREHKDWFKHGDWRQHDQGWKHVDPHPRPHQWRIWLPHDQGWKH 'RJV WR EH DOOZKHOSHGWRJHWKHUZKLFKLVLPSRVVLEOH RUHOVHWKH\UHQGHU WKHPVHOYHVYHU\FXUULVKDQGVQDSSLVKDJDLQVW$VWURORJ\%XWZKRVRGHVLUHV WR EH IXUWKHU VDWLVILHG EHFDXVH , KROG LW QRW HLWKHU FUHGLW RU GLVFUHWLRQ WR LQVLVW ORQJ KHUHRQ OHW KLP SHUXVH 3HXFHUXV KLV 7UDFW RI $VWURORJLFDO 3UHGLFWLRQV DQG KH VKDOO DPRQJVW RWKHUV WKHUH ILQG WKH YDQLW\ DQG FKLOGLVKQHVVRIWKHVHIRROLVKFDYLOVVLOHQFHGE\WKHH[DPSOHRIWKUHHZKHOSV QRWEHLQJZRUWK\WREHUHIXWHGE\OHDUQHGUHDVRQV ZKLFKEHLQJZKHOSHG LQDQ(FOLSVHRIWKHOHVVHU/XPLQDU\EHLQJJURZQWRVRPHELJQHVVIXOILOOHG WKH HIIHFWV DQG VLJQLILFDWLRQV RI WKH HFOLSVH E\ WKHLU VHYHUDO GHDWKVRQHRI WKHPEHLQJWRUQLQSLHFHVZLWK+RXQGVWKHVHFRQGILUVWE\DIDOOIURPDQ KLJK SODFH EURNH KLV 7KLJKV DQG WKHQ WKH VHFRQG WLPH KLV 1HFN DQG WKH WKLUGZDVEXUQW  $WKLUGNLQGRIFDYLOOHUVZHDUHQRZWRVSHDNRIZKRQRWREVHUYLQJ DQG ZDULO\ VHDUFKLQJ LQWR WKH RUGHU RI FDXVHV LQ 1DWXUH QRU WKH JRYHUQPHQW WKHUHRI DUH GD]]OHG DQG SX]]OHG ZLWK WKH FRQWHPSODWLRQ RI WKH PDUYHOORXV DQG DGPLUDEOH ZRUNV RI *RG DQG VR E\ UHDVRQ RI WKH GLYHUVLW\ DQG GLVVLPLOLWXGH RI HYHQWV DQG HIIHFWV LQ GLYHUVH PDWWHUV DQG VXEMHFWV UDVKO\ DQG PRVW LQFRQVLGHUDWHO\ GHQ\ WKH SRZHUV DQG YLUWXHV RI WKHFDXVHVWKHPVHOYHV   ,ZRXOGKDYHQRPDQEHVRULGLFXORXVDVWRPLVWDNHPHLQWKLVPDQQHULQFDWFKLQJEHIRUH WKH\UHDGWRDIXOOVWRSDVRIODWHWKHLJQRUDQWKDYHGRQHDQGVRUHQGHUHGKLPVHOIDGROWWR SURVSHULW\  $QVZHUWKH2EMHFWLRQWRXFKLQJWKHYDULRXVHQGVRI&KLFNHQV'RJVDQGWKHOLNHXQWLG\ EURXJKWWRJDLQVD\WKHYDOLGLW\RI$VWURORJ\   &DVSDURU*DVSHU3HXFHUXVRU3HXFH UZDVD6D[RQLDQ+XPDQLVW +H VWXGLHGPHGLFLQHDQGWKHRORJ\LQ:LWWHQEHUJEHFRPLQJDSURIHVVRURI PDWKHPDWLFVWKHUH+H LVSULPDULO\UHPHPEHUHGIRUKLVZRUNVRQGLYLQDWLRQLQ ZKLFKKHGHDOWZLWKGUHDPVDQGWKHLULQWHUSUHWDWLRQPHGLFDOSURJQRV WLFDWLRQV RUDFOHVWKHRPDQF\PDJLFPHWHRURORJ\DQGZHDWKHUSUHGLFWLRQSK\VLRJQRP\DQG DVWURORJ\)UHXGNQHZKLVVWXGLHVRQWKHLQWHUSUHWDWLRQRIGUHDPV   

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·V1DWLYLW\   7KHLQIOXHQFHRID.LQJVVRQDQGD%HJJDUVERWKERUQDWRQHYHU\PLQXWHLIVXFKZHUH NQRZQ RIQRYDOLGLW\DJDLQVW$VWURORJ\   :KDWDILJXUHRIKHDYHQLV   

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·V *RYHUQPHQW IRU LI ZH ZLOO EHOLHYH WKH*RG ZRUNV GDLO\ QHZ WKLQJV DFFRUGLQJDVZHVHHWKHPSURFUHDWHGDQGEURXJKWIRUWKE\1DWXUHZHVKDOO UXQRXUVHOYHVLQWRDJURVVHUURUZKHQZHDUHWDXJKWWKDWKHILQLVKHGKLV ZRUNLQVL[GD\V*HQ([RG(UJRKHZRUNVQRZQRPRUHEXW   7KDWWKHVWXG\RIWKH6WDUVRU$VWURORJ\PHGGOHVQRWZLWKWKHVHFUHWVRI *RG  7KHLQIOXHQFHVRIWKHKHDYHQVWDNHQRWDZD\*RG·VJRYHUQPHQW   ´$QG*RGVDZHYHU\WKLQJWKDWKHKDGPDGHDQGEHKROGLWZDVYHU\JRRG $QGWKHHYHQLQJDQGWKHPRUQLQJZHUHWKHVL[WKGD\µ   

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

  ,JQRUDQFHWKHRQO\FDXVHRIPHQVLOOFRQFHLWRIWKLVPRVWODZIXODQGKHDYHQO\$UW   $VWURORJ\DVODZIXODVWKHXVHRIKHUEVRUDQ\RWKHUWKLQJ   0RUHWREHGHILQHGE\3K\VLFLDQVWKDQDQ\RWKHUVWXG\   $YLFHQRU $YLFHQQD$EX$OL6LQD RU,EQ6LQD &( +HZDVD3HUVLDQ SK\VLFLDQDQGSKLORVRSKHU+HZDVERUQQHDU%XNKDUDWKHQFDS LWDORIWKH6DPDQLG G\QDVW\%\WKHWLPHKHZDV\HDUVROGKHKDGOHDUQHGWKH.RUDQDVZHOODV $UDELFJUDPPDUDQGOLWHUDWXUH%\WKHDJHRIKHKDGPDVWHUHGQRWRQO\QDWXUDO VFLHQFHDQGUXGLPHQWDU\PHWDSK\VLFVEXWDOVRPHGLFDOWKHRU\$EX$OL6LQDZDV RQHRIWKHPDLQLQWHUSUHWHUVRI$ULVWRWOHDQGZDVWKHDXWKRURIDOPRVWWZRKXQGUHG ERRNVRQVFLHQFHUHOLJLRQDQGSKLORVRSK\$YLFHQQD VWZRPRVWLPSRUWDQWZRUNV DUH6KLID7KH%RRNRI+HDOLQJ DQG $O4DQXQ IL7LEE7KH&DQRQRI0HGLFLQH  $YLFHQQDGLHGL QLQ+DPDGDQ,UDQ   

WKHFKLHISLOODURIKLV$UWYL]WKHWUXHFDXVHRIWKHPDODG\ZLWKRXWLWQHLWKHU ZLWKLW LIZHOOOHDUQHGWKHUHLQ FDQKHHUU$QG*DOHQDFFRXQWVWKDWPDQ UDWKHUDIRROWKHQD3K\VLFLDQWKDWLVQRWDQ$VWURORJHUDQGKHIDUWKHUVD\V WKDW 3K\VLF JLYHQDWXQVHDVRQDEOHWLPHVGRHVQRWRQO\OLWWOHDYDLORUKHOS EXWRIWHQWLPHVSURYHYHU\KXUWIXOHYHQWRWKHHQGDQJHULQJRIWKHOLIHRIWKH 3DWLHQWDQGWKDWWKHVHWLPHVDUHRQO\WREHNQRZQDQGMXGJHGE\WKHVWDUV  

 &+$3;,&RQWDLQLQJDQ,QWURGXFWLRQWRWKH9LQGLFDWLRQRIP\/X[ 9HULWDWLVIURPWKHDVSHUVLRQVRI'RFWRU+RPHVDQGKLVVHFRQGZLWKWKH ILUVW5HDVRQZK\,DFFRXQWQHLWKHURIWKHPZRUWKRXURIP\QRWLFH



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

&+$3;,,&RPSUHKHQGLQJWKUHH5HDVRQVPRUHZK\WKDW5DEEOHRI WKHLUVZDVQRWZRUWK\WKHDQVZHULQJ

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  YHULWDWHGLDORJXVDEVROXWLVVLPXVDQG'HIHQ VLRDVWURQRPL 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

WKRXJKW,ZRXOGWDNHDFFHSWDWLRQVDWWKLVZLWKWKHUHVWRIKLVVLOO\MHHUVDQG DIIURQWV UDLOLQJV DQG DEXVHV ZKHUHZLWK KLV 3DPSKOHW LV IUDXJKW DQG WKHUHIRUHWKRXJKWLWILWWRPDNHLWSURFHHGIURPRQHVRQHDUP\RZQDJHKH PXVWQHHGVWKLQNLWZRUWK\RIPXFKPRUHQRWLFHWRSURFXUHODXJKWHURQO\ EXW QR RWKHUZLVH SHUKDSV RXW RI D WHQGHU UHVSHFW WR P\ KHDOWK KH GLG LW NQRZLQJ PH WR EH D PHODQFKRO\ PDQ IRU , NQRZ KH LV DOVR D 'RFWRU RI 3K\VLF WHVWLV %UHGVWUHHW QLKLO DPSOLXV GLFR IRU WKH ZKLFK JRRG UHFHLSW EHIRUH WKH FORVXUH RI WKLV %RRN LI , IRUJHWQRW  , VKDOO UHTXLWH KLP ZLWK D GRXEOH)HHIRU,DEKRUWREHLQKLVGHEWEXWWKHUHLQKHGLGYHU\LOOWRVHQG PHWKLVPHGLFLQHE\VRXQZRUWK\DQ$SRWKHFDULHVER\RUPDQ,FUDYH\RXU SDUGRQ LIKHLQWHQGHG,VKRXOGHYHUKDYHWDNHQQRWLFHRILWRWKHUZLVHKH KDG EHHQ UHSDLG ORQJ HUH QRZ , PXVW FRQIHVV , DP QRW DEOH WR FRPSDUH %HDUGVZLWKWKH'RFWRUIRUPLQHLVQRWE\DWOHDVWWZRLQFKHVVRORQJDVD *RDWV\HWLWZDVIXOODQGORQJDVKLVWKRXJKQRVRKRDU\ WKH6XQGD\DIWHU WKH (FOLSVH RI WKH6XQ LQ 0DUFK ODVW ZKHQ KH EHDW GRZQ$VWURORJ\ ZKLFK 3KUHQHWLFXVDQGVXFKOLNH)UHQ]LHVDQGWKHUHIRUHLQWKLVKHVKDOOKDYHWKH SUHKHPLQHQF\ IRU VHQH[ ELV SXHU DQG VR EHLQJ QRZ LQ KLV GRWDJH , ZLOO JLYHKLPOHDYHWRUHFNRQXSDVPDQ\%R\VRI\HDUVRIDJHDVKHSOHDVHV DQG PDNH KLPVHOI PRUH ULGLFXORXV WKHQ DOUHDG\ LI SRVVLEOH LW EHLQJ QR XQXVXDOWKLQJZLWKKLPWRVSHDNUHSXJQDQFLHVWRERWK5HDVRQDQG6HQVH DV ZLOO DSSHDU WR DQ\ WKDW VKDOO SHUXVH KLV %RRN DQG WKHUHIRUH,VKDOOQRW QHHGKHUHIXUWKHUWRHQODUJH  

 &+$3;,,,&RQWDLQLQJWKHIRXUWK5HDVRQDQG9LQGLFDWLRQIURPVRPH RIWKHLUDEXVHVDQGXQWUXWKV



+DYLQJWKXVHQWHUHGOHWXVSURFHHGWRDIRXUWK5HDVRQ  )RXUWKO\ IRU WKDW LW LV D GLVFRXUVH SDWFKHG XS ZLWK QRWKLQJ EXW HYDVLRQV DV QRW GLVSXWLQJ DG LGHP DQG VFXUULORXV UDLOLQJ ODQJXDJH DQG DEXVHVWRZDUGVPHDPRQJVWKXQGUHGVRIZKLFK,VKDOOKHUHRQO\WURXEOH \RXZLWKWKHVHWKUHH   )LUVW WKDW D JRGO\ VFKRODU UHSRUWHG XQWR KLP  ZDV DVVLVWHG LQ WKH SHQQLQJ RI P\ GHIHQFH RI $VWURORJ\ 3DJH  RI KLV GLVFRXUVH WKH ZKLFK KH KHDWKHQLVKO\ VLPSO\ DQG LJQRUDQWO\ , ZLOO QRW VD\ IRROLVKO\  WHUPV XQFKULVWLDQOLNH , ZRXOG KH KDG QRWEHHQWKXVK\SRFULWLFDOEXWKDGQDPHG KLVJRGO\VFKRODUVQDPHLIDQ\VXFKWKHUHZHUH DQGQRWKDYHOHIWKLV5HDGHU DQG LQGLIIHUHQW PHQ WKXV LQ GRXEW QRU VR GLDEROLFDOO\ ZLFNHG DV WKXV WR LQYHQWXQWUXWKVUDWKHUWKHQKHZLOOQRWGLVJUDFHDQGGLVSDUDJHPHZKLFK, VKDOOSURYHDQGDOVRWKDWKHLVDV,KHUHWHUPKLPDQGVRFRQVHTXHQWO\QRW ZRUWK\WKHWDNLQJQRWLFHRIFUHGLWLQJDQGWKDWILUVWDIILUPDWLYHO\DQGWKHQ QHJDWLYHO\   ,·OOVD\QRPRUH   ([FHVVLYHO\DJLWDWHGWUDQVSRUWHGZLWKUDJH   $QROGPDQLVWZLFHDER\RU´6HQH[HQWHUVKLVVHFRQGFKLOGKRRG   7RWKHVDPHWKLQJRUWRWKHVDPHUHVXOW   7KDWKHLVPRVWG LDEROLFDOO\ZLFNHGDQGLQYHQWHURIXQWUXWKV   

)LUVWDIILUPDWLYHO\WKDWVLQFHLWLVJUDQWHGWKDWQRJRGO\PDQZLOOOLH KHFRXOGQRWE\DQ\RQHEHLQIRUPHGRIDQ\VXFKWKLQJVLQFH,QHYHULQWKH OHDVW ZDV DVVLVWHG RU HQOLJKWHQHG LQ DQ\ SDUW RI WKH $UW E\ DQ\ PDQ RU SDUW\OLYLQJRUGHDGPXFKOHVVLQSHQQLQJRIWKDW%RRNZKLFKQRQHHYHU VDZ WLOO LW ZDV ILQLVKHG DQG EURXJKW WR EH /LFHQVHG EHVLGHV , GR KHUH GHFODUHWRDOOWKHZRUOG,DPQRWIDPLOLDUO\DFTXDLQWHGZLWKDQ\PDQOLYLQJ XSRQWKHIDFHRIWKHHDUWKWKDWLVDVWXGHQWLQWKLVPRVW1REOH6FLHQFHDQG WKHUHIRUHGHI\WKDWPDQZKRVRHYHUKHEHWKDWVKDOOKHUHLQVRJURVVO\DEXVH PHIRU,GHVLUHDQ\RQHEHLWZKRPLWZLOO WKDWFDQKHUHLQGLVSURYHPHWR SXEOLVKLWWRWKHZRUOGDQG,VKDOOEHFRQWHQWWRVXEVFULEHP\VHOIQRRWKHU DQG WKHQ , DP VXUH , VKDOO EH EDG HQRXJK  WKHQ WKLV PRVW PDOLFLRXV DQG XQZRUWK\2UODQGRZRXOGSHUVXDGHWKHZRUOGRIPH  %XWKHKDGGRQHZHOOIRUWKHSUHYHQWLRQRIWKLVP\$QVZHUWRKDYH DFTXDLQWHG KLV 5HDGHU DV , KDYH VDLG  ERWK ZLWK WKH QDPH RI KLVJRGO\ VFKRODU DQG WKH QDPHV RI WKRVH WKDW , ERUURZHG DLG RI ZKHUHIRUH WR DQ\ UDWLRQDOPDQZKDWKDVEHHQDOUHDG\VDLGLVVXIILFLHQWWRFRQFOXGHKLPQRW ZRUWK\P\$QVZHUWRHYHU\SDUWLFXODURIKLV5DEEOHDQGWKDWKHLVDV,KDYH DIILUPHGKLP$QGWKHUHIRUH,UHIHUKLPWR5HYWRUHFHLYHKLVSRUWLRQ ZLWKVXFKDVDUHWKHUHH[SUHVVHG   6HFRQGO\QHJDWLYHO\WKDWKHLVQHLWKHU*RGO\QRU5HOLJLRXVIRU VLQFHWKHUHLVQRWKLQJPRUHFHUWDLQWKHQWKDWDJRGO\PDQZLOOQRWOLHVR E\WKHUXOHRIFRQWUDULHV LVWKHUHDQ\WKLQJPRUHDIILUPDWLYHWKHQWKDWWKDW PDQWKDWGRHVOLHLVQRZLVHJRGO\RUUHOLJLRXV WKDWKHHUUHGLQWKLV SDUWLFXODULVFOHDU(UJR1RW5HOLJLRXVQRUJRGO\KLPVHOIDOWKRXJKVXFKD SUHWHQGHU$QGIRUWKHDVVXUDQFHWKHUHRIOHWKLPEXWPDNHLW\HWDSSHDUWRWKH ZRUOGWKDWKHZDVE\DQ\ZKHWKHUJRGO\RUQR LQIRUPHGRIDQ\VXFKPDWWHUDQG WKHQDPHVRIWKRVHVKRXOGJLYHPHDQ\DVVLVWDQFHWKDWWKHUHEHDQ\LQWKHZRUOGWKDW ZLOOMXVWLI\LWDQG,GRKHUHSURPLVHWKRXJKLIRYHUFRPH,VKDOOJDLQWKHUHE\QR FUHGLW ,ZLOOKRQRXUKLPVRIDUDVWROHWSRVWHULW\NQRZKHZDVZRUWK\RI5$0( 6(<6$QVZHU  $QGVXFKLVKLVPDOLFHKHFDQQRWEHFRQWHQWZLWKWKLVEXWXSRQP\ H[SUHVVLRQRIWKH%OHVVHGVWRQHRIWKH3KLORVRSKHUVZKLFKZDVEXWEURXJKWLQ E\WKHZD\KHTXLEEOHVRQLWOHDYLQJWKHPDWWHUVWLOOLQTXHVWLRQDQGKLV 5HDGHUXQVDWLVILHG DQGWKDWZLWKLQYHFWLYHPDOLFLRXVVODQGHURXVVSHHFKHV DJDLQVW P\ IDWKHU LQIHUULQJ E\ KLV UDEEOH LQ WKH  SDJH WKHUHRI WKDW P\ IDWKHUZDVQRWRQO\UXLQHGE\KLVVWXG\LQWKDWPDWWHUEXWDOVROD\LQSULVRQ WKHUHE\ZKLFKLVPRVWQRWRULRXVO\IDOVHDVDOOWKDWDUHRIKLVDFTXDLQWDQFH FDQMXVWLI\IRUWKDWKHQHLWKHULVLQSULVRQRUHYHUZDVXSRQDQ\VXFKVFRUH WKHUH LV QRWKLQJ PRUH FHUWDLQ ,W LV WUXH PXFK KH KDV H[SHQGHG LQ WU\LQJ FRQFOXVLRQV WKDW ZD\ EXW , GHI\ DQ\ PDQ OLYLQJ WR VD\ KH SXW KLP WR D SHQQ\FKDUJHVWKHUHLQEXWVRLQWROHUDEOHLVKLVIXUWKHUDEXVHKHUHLQWKDW,   ´%XWWKHIHDUIXODQGXQEHOLHYLQJDQGWKHDERPLQDEOHDQGPXUGHUHUVDQG ZKRUHPRQJHUVDQGVRUFHUHUVDQGLGRODWHUVDQGDOOOLDUVVKDOOKDYHWKHLUSDUWLQ WKHODNHZKLFKEXUQHWKZLWKILUHDQGEULPVWRQHZK LFKLVWKHVHFRQGGHDWKµ   7KDWKHLVQRW*RGO\RUUHOLJLRXV   8SRQWKHFORVLQJRIKLVZRUGVWKH$XWKRUSURPLVHVKLPWKDWKRQRXUDVWRDQVZHUKLP ZKLFKRWKHUZLVHKHKROGVKLPQRWZRUWK\RI   

FDQQRW EXW GHOLYHU LW WRWKH ZRUOG ERWK IRU WKH FOHDULQJ RI P\ IDWKHU DQG PDQLIHVWLQJ WKLV )XULRVR V PDOLFLRXVQHVV LQ WKH VDPH SODFH KH KDV WKHVH ZRUGVSHUVLVWLQJWKXVLQKLVZLFNHGVODQGHUVDQGWUXO\IRUWKLVKDGKHKLV GXH KLV HDUV VKRXOG EH FURSSHG WR WHDFK KLP WR NHHS KLV WRQJXH ZLWKLQ FRPSDVV DIWHU KH KDG PHQWLRQHG PRVW IDOVHO\ DQG XQZRUWKLO\ KH ZDV LQ SULVRQWKHUHE\KHVD\VWKRXJKWKHODWH.LQJERUHZLWKKLVGHIHDWLQJKLPRIKLV H[SHFWDWLRQV DQG RI VFRUHV RI SRXQGV \HW RWKHU PHQ ZLOO QRW FDQQRW EHDU VXFK ZURQJVLQWLPDWLQJDVZLOOVRRQDSSHDUWRWKHMXGLFLRXV5HDGHUWKDWKHKDG PRQH\ IURP WKH .LQJ IRU KLV FKDUJHV LQ WKRVH ZRUNV EXW WR KLV JUHDW GDPDJH EURXJKW QDXJKW WR SDVV ZKLFK RI DOO PLVFKLHIV DQG HQYLHV LV WKH JUHDWHVWIRUWKHUHLVQRQHZKRKDGDQ\DFTXDLQWDQFHZLWKWKH.LQJEXWFDQ DFTXDLQWWKHZRUOGKHZDVHYHUDYHUVHWRVXFKDEHOLHIDQGKDGPDQ\WLPHV GLVVXDGHG KLP IURP VXFK H[SHQVLYH FRXUVHV WKLV WUXO\ LV D SUHWW\ ZRUOG ZKHQVXFKIHOORZVDVKHVKDOOVSHDNRINLQJVDFWLRQVDQGH[SHFWDWLRQV DQG VRIDUZDVKHIURPOHQGLQJKLPPRQH\WKDWKHRZHGKLPLQDUUHDUZKHQKH GLHG … DV LV WHVWLILHG XQGHU WKH KDQGV RI 6LU5REHUW 3\H 6LU :LOOLDP 9XLGDOH 6LU'DYLG &XQQLQJKDP &DS)DONRQEULGJH $XGLWRU&ROOLQVDQG RWKHUVEXWFHUWDLQO\KHWKDWZLOOSUHVXPHLQSULQWWKXVWRDIILUPXQWUXWKV DQGWKRVHVRVFDQGDORXVZLOOQRWVWLFNWRVD\DQ\WKLQJULJKWRUZURQJVR KHPD\EXWDGYDQWDJHKLPVHOIVL[SHQFH  :KHUHIRUHZKDWKHVD\VLQGHULVLRQRIWKDWPRVWVXEOLPH5HYHODWLRQ DQG KHDYHQO\ VHFUHW ZKLFKPHQYXOJDUO\FDOOWKH3KLORVRSKHUV6WRQHEXWLQ HIIHFW WKH VRXO RI WKH ZRUOG DQG WKDW ZKHUHE\ DOO WKLQJV ERWK &HOHVWLDO DQG 7HUUHVWULDOWKDWDUHFUHDWXUHVVXEVLVWLQFUHDVHDQGQH[WXQGHU*RGKLPVHOI KDYHWKHLUEHLQJ,VD\ZKDWHYHUKHRUDQ\VXFK$QLPDOWRZKRP*RGKDV QRW EHVWRZHG VR PXFK PHUF\ DV WR EHOLHYH VXFK D WKLQJ WR EH LQUHUXP QDWXUDRULQSRVVHVD\VDJDLQVWLWLVQRWPXFKPDWHULDOIRUP\SDUWLI, VKRXOG VHH VXFK NLQG RIFUHDWXUHVEHOLHYHDQGGLVFRXUVHWKHUHRQ,VKRXOG KDG , QHYHU EHIRUH KHDUG WKHUHRI  KDYH FRQFOXGHG LW WR EH PHUH IRROHU\ DQG PDGQHVV DV WKHVH PDG NLQG RI SHRSOH GR EXW LI , VKRXOG DVN KLP ZKDWKHWKLQNVRI&RLQLQJ,EHOLHYHKHZRXOGFRQFOXGHWKDWDJUHDWGHDOWKH EHWWHU7UDGHEXW,VKDOOSDVVE\WKDWIRUKHNQRZVZHOOHQRXJKZKDW,PHDQ, OO ZDUUDQW\RXKHWKLQNVKLVDPRUHEOHVVHGWKLQJDJUHDWGHDO  $JDLQVHFRQGO\LQKLVSDJHKHVD\V,ZDVVHWRQE\P\%UHWKUHQWKH $VWURORJHUV EHLQJ RQH RI WKHVLOO\ZHDNRQHV WRFRQIXWH'RFWRU+RPHVDQGLQ GLYHUVSODFHVKHLQIRUPVDQGDVVXUHVKLV5HDGHU,VWXG\DQGSUDFWLFHWKH$UW LQ D PHUFHQDU\ZD\DQGJDLQPRQH\E\UHVROYLQJTXHVWLRQVZKHUHE\\RXPD\ SODLQO\ VHH KRZ KLV HQY\ UXQV KLP LQWR DQ DEVXUGLW\ DQG LQVWHDG RI   8SRQWKHFOHDULQJRIKLVZRUGVWKH$XWKRUSURPLVHVKLPWKDW KRQRXUDVWRDQVZHUKLP ZKLFKRWKHUZLVHKHKROGVKLPQRWZRUWK\RI   6LU5REHUW3\H  ZDVDXGLWRURIWKH([FKHTXHUDQGDVWDXQFK5R\DOLVW   8QNRZQ   'DYLG&XQLQJKDPRI%DUWHQKROPODLUGRI5REHUWODQG$\UHVKLUH6FRWODQGGLHG FLUFD    /RUG)DOFRQEULGJHPDUULHG0DU\&URPZHOOWKLUGGDXJKWHURI2OLYHU&URPZHOO LQ+HEHFDPHDOLHQDWHGIURP&URPZHOODQGUHIXVHGWRFRRSHUDWHZLWKKLP   ,QWKHQDWXUHRIWKLQJV   +DYLQJVWUHQJWKRUSRZHUEHLQJDEOH   $JRRGMHVWZHUHLWQRWWRRWH GLRXVWRUHODWH   

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·V ZLVH PDQ WKDW LV KHUH XQGHUVWRRG  DQG$VWUD UHVXQW EHPLQHV VHG UHJLW DVWUD 'HXVWKHVWDUVUXOHPHQEXW*RGUXOHVWKHVWDUVQRWPHDQLQJZKHQZDVVD\$VWUD UHJXQW KRPLQHV DQ\ IDWDO QHFHVVLW\ WR EH DWWULEXWHG WR WKH LQIOXHQFH RI WKRVH KHDYHQO\ERGLHVQRUWRKDYHSRZHURYHUPHQIDUWKHUWKHQVXFKPHQDUHJXLGHGRQO\ E\ VHQVH DV EUXLW EHDVWV DQG QRW E\ UHDVRQ DQG IDUWKHU WKDW WKH\ $JXQW QRQ FRJXQWWKH\DFWRULQFOLQHEXWQRZLVHFRPSHOEXWZKHUHJUDFHRUUHDVRQVXSSRUWVD

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´$QVZHUQRWDIRRODFFRUGLQJWRKLVIROO\OHVWWKRXDOVREHOLNHXQWRKLPµ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

&+$3;,9&RQWDLQLQJWKH$XWKRUVIRXUWK5HDVRQDQGWKH6FULSWXUH SURRIVDOOHJHGIRU$VWURORJ\LQKLV/X[9HULWDWLVSURYHGWRUHPDLQ XQVKDNHQ

 5HDVRQ  )LIWKO\ )RU WKDW LW LV QRW DQ DQVZHU WR P\'LVFRXUVHZKLFKWKH OHDUQHG DQGMXGLFLRXVZLOOVRRQILQG,PHDQWKH3HQQHUVWKHUHRIKDYHQR ZD\VDQVZHUHGWRWKRVHSDVVDJHVRIPLQHWKH\KDYHH[SUHVVHGDQGSUHWHQG WR UHIHOO , PLJKW KHUH VHW GRZQ PDQ\ SDVVDJHVRIWKDWUDEEOLQJ'LVFRXUVH

 IURPPHLI\HZLOOQRWPDNHNQRZQXQWRPH WKHGUHDPZLWKWKHLQWHUSUHWDWLRQ WKHUHRI\HVKDOOEHFXWLQSLHFHVDQG\RXUKRXVHVVKDOOEHPDGHDGXQJKLOO   -RKQ&KDPEHUVZKRSXEOLVKHG $7UHDWLVH$JDLQVW-XGLFLDO$VWURORJLH +HDUJXHG WKDWDVWURORJ\ZDVLQFRQVLVWHQWZLWK&KULVWLDQLW\+HDOVRZUR WHDUHSO\WR+H\GRQ ZKLFKZDVQHYHUSXEOLVKHG   

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

LPSXGHQFHZUHVWLQJRI6FULSWXUHVDQGFRQFHDOHGQHVVWRXFKLQJZKRPWKH ZLVHVWRIPHQ6RORPRQ 3URYWHVWLILHV  

 &+$3;96KRZLQJWKDWWKH7H[WLQ3VDOYDOOHJHGE\WKH$XWKRU WRSURYHWKHVWDUVKDYHLQIOXHQFHLVQRZLVHUHIHOOHG



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

  ´6HHVWWKRXDPDQZLVHLQKLVRZQFRQFHLW"WKHUHLVPRUHKRSHRIDIRROWKDQRI KLPµ  7KLVUHSO\WR3VDOPSURYHGQRWLQVXIILFLHQWDQGZHDNIRUWKHLUSXUSRVH   :KRLVNLQJRIW KHVWDUV   

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

&+$3;9,3URYLQJWKHLU5HSO\WR-REVKRZLQJWKHVWDUVWRKDYH LQIOXHQFHWREHIULYRORXVDQGRIQRHIIHFW



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·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

  7KLVLVDTXRWDWLRQIURP$XJXVWLQH V &LW\RI*RG %RRN9&KDSWHU$XJXVWLQH DOORZVWKHSODQHWVWRKDYHDQHIIHFWRQWKHSK\VLFDOZRUOGVXFKDVWLGHVDQG VHDVRQVEXWQRWRQWKHKXPDQVRXO´,WLVQRWHQWLUHO\DEVXUGWRVD\WKDWFHUWDLQ LQIOXHQFHVIURPWKHVWDUVGRKDYHDQHIIHFWEXWRQO\RQFHUWDLQERGLHVDVZKHQ ZLWKWKHDSSURDFKDQGUHFHVVLRQRIWKHVXQZHVHHWKHVHDVRQVRIWKH\HDULWVHOI YDU\DQGZLWKWKHZD[LQJDQGZDQLQJRIWKHPRRQFHUWDLQVRUWVRIWKLQJVVXFKDV VHDXUFKLQVDQGV KHOOILVKDQGWKHPDUYHOORXVWLGHVRIWKHRFHDQ\HWQRWWKDWWKH ZLVKHVRIWKHVSLULWDUHDOVRVXEMHFWWRWKHSRVLWLRQVRIWKHVWDUV µ   /LEFKDSDQGOLEFKDSFRQWUD)DXVXP0DQFKHXP   -RKQ&DOYLQERUQ1R\RQLQ3LFDUG\)UDQFH-XO\GLHG DW*HQHYD0D\ &KULVWLDQUHIRUPHU+LVWKHRORJ\KDVEHHQJUHDWO\LQIOXHQWLDOLQPDQ\ 3URWHVWDQWGHQRPLQDWLRQV7KHSULPDU\WHQHWVRI&DOYLQLVPLQFOXGHDEHOLHILQWKH SULPDF\RIWKHVFULSWXUHDVDQDXWKRULW\IRUGRFWULQDOGHFLVLRQVDEHOLHILQ SUHGHVWLQDWLRQDEHOLHILQVDOYDWLRQZKROO\DFFRPSOLVKHGE\JUDFHZLWKQR LQIOXHQFHIURPZRUNVDQGDUHMHFWLRQRIWKHHSLVFRSDF\:URWHDWUHDWLVHH[SRVLQJ MXGLFLDODVWURORJ\   



&+$3;9,,3URYLQJWKHLU5HSO\WR-XGJHVZHDNDQGQRZLVH DYDLODEOHWRWKHLULQWHQWRUSXUSRVH

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



 &+$3;9,,,7KDWWKHVWDUVDUHSURYHGERWKVLJQVDQGFDXVHVE\WKH ZRUGRI*RGDQGWKH$UWODZIXOQRWZLWKVWDQGLQJDOOWKHLUPDOLFH

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

  7KDWWKHVWDUVDUHERWKVLJQVDQGFXDVHVSURYHGDQGFOHDUHG   

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



 &+$3;,;3URYLQJ$VWURORJ\WREHZDUUDQWHGE\&RXQFLOVLQVSLWHRI WKHLU5DEEOH



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

 &+$3;;&RQWDLQLQJWKHSRZHUDQGVXEMHFWRI$VWURORJ\DQGKRZIDU WKH$XWKRUYLQGLFDWHVLW




  )LWWLQJRUGHVHUYHGXVXDOO\UHIHUULQJWRSXQLVKPHQW   +RZWKH$XWKRUVHWVGRZQWKHSRZHUDQGVXEMHFWRI$VWURORJ\   

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

  +RZIDUWKH$XWKRUPDLQWDLQVRUMXVWLILHV$VWURORJ\   7KH$XWKRUVRSLQLRQWRXF KLQJ1DWLYLWLHV   $ZLVHPDQFDQUXOHWKHVWDUV7KLVIDPRXVWDJLVFRQWLQXDOO\TXRWHG&I7RPNLV  $OEXPD]DU DFWHGDW&DPEULGJH0DUFK ,ZKHUH$OEXPD]DUVD\V´ ,QGHHG WK J\SWLDQ3WROHP\WKHZLVH 3URQRXQF GLWDVDQRUDFOHRIWUXWK6DS LHQV GRPLQDELWXUDVWULVµ6LU6DPSVRQ/HJHQGLQ&RQJUHYH V /RYHIRU/RYH ZDVSURGXFHG DW/LQFROQ V,QQ)LHOGV$SULO,,,)RUHVLJKWZKRORXGO\DFFODLPVWKH LQIOXHQFHRIWKHVWDUVVD\V´,WHOO\RX,DPZLVHDQGVDSLHQVGRPLQDELWXUDVWUXVW WKHUH V/DWLQIRU\RXWRSURYHLWµ$FFRUGLQJWR:$OGLV:ULJKW VQRWHRQ%DFRQ V $GYDQFHPHQWRI/HDUQLQJ ,,[[LLL´0U(OOLVVD\VWKLVVHQWHQFHLVDVFULEHGWR 3UROHP\E\&RJQDWXVµ,WVDFWXDORULJLQLVXQNQRZQ   7RXFKLQJ+RUDU\TXHVWLRQVDQG(OH FWLRQV  


  7KHGLUHFWFXWWLQJRIDYHLQWRUHOHDVHEORRG,WZDVRIWHQGRQHZLWKDNQLIHDQG WKHQODWHUWKH VSULQJORDGHGODQFHW ZKLFKLVEDVLFDOO\DVSULQJORDGHGNQ LIH  1HHGVPXVWEHPRVWLPSLRXVDQGLJQRUDQWWKDWWUDGXFHV$VWURORJ\   (UJRIDUIURPPDNLQJPHQ$WKHLVWVDVVRPHKDYHDIILUPHG H[FHSWWKH\EHOLHYHDIDWDOLW\ ZKLFKLQWKLVVWXG\LVWREHZKROO\GHQLHGDQGE\PHHYHUZDV    





$1,1752'8&7,21727+(-8'*(0(172) 7+(67$56:+(5(,17+(:+2/($572) $6752/2*< ,VSODLQO\WDXJKWDQGWKH*URXQGZRUNRU 5HDVRQVWKHUHRIIRUWKHEHQHILWRIWKH6WXGHQWV WKHUHLQGHOLYHUHGWKHEHWWHUWRFRQILUPWKHPLQHYHU\ SRLQWWKHUHRIDVDOVRWRVDWLVI\VXFKZKR VKDOOHLWKHUHQYLRXVO\RULJQRUDQWO\WUDGXFH

RUFDYLODJDLQVWLW

%RRN

%\:,//,$05$0(6(<*HQW 6WXGHQWLQ$VWURORJ\3K\VLFDQGWKHPRVW+HDYHQO\DQG6XEOLPH6FLHQFHV -RE $QFRQVWULQJHVGHOLFLDV3OHLDGXP"DXWORUD2ULRQLVGLVVROYHV" LQGXFHVQHUHPRWLRUDVLJQDTXRGTXHWHPSRUHVX"DXW $UFWXUXP FXPILOLLVVXLVGXFHV"$QFRJQRVFLVGHVWDWXWLV&RHOL DQGLVSRQHUH  SROHVGRPLQLXPHMXVLQWHUUD" F  /21'21 3ULQWHGIRU5:

  -REYHUVHV´&DQVWWKRXELQGWKHVZHHWLQIOXHQFHVRI3OHLDGHVRUORRVH WKHEDQGVRI2ULRQ"&DQVWWKRXEULQJIRUWK0D]]DURWKLQKLVVHDVRQ"RUFDQVW WKRXJXLGH$UFWXUXVZLWKKLVVRQV".QRZHVWWKRXWKHRUGLQDQFHVRIKHDYHQ" FDQVWWKRXVHWWKHGRPLQLRQWKHUHRILQWKHHDUWK"µ  

 





 

7+(5,*+7+21285$%/($1'7UXO\1REOHERWKIRU/HDUQLQJ



DQG3DUWV:LOOLDP6H\PRXU

0DUTXLVDQG(DUORI+$57)25'/RUG6(<0285DQG%($8&+$0 F

5LJKW+RQRXUDEOH  6KRXOG , KDYH WKH OHDVW KRSH RI PHULW IURP \RXU +RQRXU E\ WKLV P\ 'HGLFDWLRQ +DYLQJ QHYHU KDG WKH KDSSLQHVV WR DSSHDU LQ \RXU +RQRXU·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
DQG$UDELDQVIRUDPRQJVWWKH(J\SWLDQVLWZDVQRW/DZIXOIRUDQ\PDQWR WDNHWKH)XQFWLRQRI3ULHVWKRRGRQKLPH[FHSWKHZHUHDQ$6752/2*(5 QHLWKHU FRXOG DQ\ EH FKRVHQ .LQJ H[FHSW KH ZHUH RI WKH &ROOHJH RI WKH 3ULHVW $QG 5RGLJLQXV UHSRUWV WKDW IRU WKH SUHYHQWLRQ RI 7UHDVRQ WKH 1DWLYLWLHVRIDOO,QIDQWVERUQWKHUHLQZDVEURXJKWWRWKH.LQJWREHMXGJHG RQ DQG 'LRQ UHFRUGV WKH VDPH WR EH SUDFWLVHG E\ WKH (PSHURU7LEHULXV DQG LQ WKH 3URSKHF\ RI'DQLHO ZH PD\ VHH WKDW WKH 0RQDUFKV RI%DE\ORQ DWWHPSWHG QRWKLQJ RI LPSRUWDQFH ZLWKRXW ILUVW DVNLQJ &RXQFLO RI WKH &KDOGHDQV $QG WKH .LQJV RI /DFHGHPRQLD VXIIHUHG QRQH WR VLW LQ WKHLU &RXQFLOV EXW ZKR ZHUH $VWURORJHUV $QG DPRQJVW WKH 3HUVLDQV QRQH ZDV DGPLWWHGWRWKH&URZQEXWZKRZHUHH[FHOOHQWO\VNLOOHGLQ$6752/2*<  :KHUHIRUH P\ /25'  VLQFH WKLV LV DQ $57 WKDW KDV HYHU EHHQ HVWHHPHG DPRQJVW WKH 1REOHU :LVHU *UHDWHU ,QJHQLRXVHU DQG WKH PRVW UHILQHG 6SLULWV RI WKH :RUOG IURP $JH WR $JH DQG FKLHIO\ 6WXGLHG 0DLQWDLQHG DQG 8SKHOG E\ WKHP , KXPEO\ SUHVXPHG WR 'HGLFDWH WKLV ,QWURGXFWRU\3DUWXQWR\RX+RQRXUVLQFHDOOWKHVH3URSHUWLHVDUH1DWXUDOO\ ,QKHUHQW LQ\RXU1REOH6HOIIRUWUXH1RELOLW\LVWKHILWWHVW3DWURQIRUVXFK 1REOH6&,(1&(6QHLWKHUDUHWKH\ILWWREHRIIHUHGWRDQ\EXWZKRDUHUHDOO\ VXFKLWVXUSDVVLQJWKHUHDFKRIWKHRUGLQDU\FDSDFLW\RIWKH:RUOGVRWKDW P\ /25'  P\ KRSH LV WKDW LI QRW IRU WKH :HOOZLVKHV DQG +RQRXU WKH 3UHVHQWHUWKHUHRIEHDUVWR\RXU/RUGVKLSQRUWKH$QWLTXLW\DQG([FHOOHQF\ RI WKH 7KLQJ SUHVHQWHG \HW \RXU +RQRXU ZLOO DFFHSW WKHUHRI RXW RI WKH 0XQLILFHQFH RI \RXU RZQ ,QQDWH 0DJQDQLPLW\ LW EHLQJ VXIILFLHQW KRQRXU IRUPHWRDFNQRZOHGJHP\VHOI  0</25' <285+21285·6 0RVW+XPEOH6HUYDQW  

:LOOLDP5DPHVH\

  7KRVHIURPDFLW\LQ&UHWH   &HOLR5RGLJLQRKXPDQLVW    'LRQRI6\UDFXVH" ²"%&(6LFLOLDQ*UHHNSROLWLFDOOHDGHUEURWKHU LQODZ RI'LRQ\VLXVWKH(OGHUW\UDQWRI6\UDFXVH+HEHFDPHLQWHUHVWHGLQSKLORVRSK \ WKURXJKKLVDFTXDLQWDQFHZLWK3ODWR'LRQHQGHDYRXUHGWRVHWXSDPRGHUDWH V\VWHPRIJRYHUQPHQWZLWK'LRQ\VLXVWKH


7RWKH5HDGHU

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
:LOOLDP5DPHVH\

 

$1,QWURGXFWLRQ7R7KH-XGJHPHQWRIWKH 6WDUV



 &+$3,2IWKH1DPHVDQG1XPEHURIWKH3ODQHWVZLWKWKHLUVHYHUDO &KDUDFWHUVDQGRIWKHVLJQLILFDWLRQVDQGQDWXUHRI6DWXUQ

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

  7KH1XPEHURIWKH3ODQHWV7KHLUQDPHVDQG&KDUDFWHUV   7KHQDWXUHRI6DWXUQ   7KH*OREHRI6DWXUQ   $O%DWWDQL  LVVRPHWLPHVNQRZQE\D /DWLQLVHGYHUVLRQRIKLVQDPH YDULDQWVEHLQJ$OEDWHJQLXV$OEDWHJQLRU$OEDWHQLXV+LVIXOOQDPHZDV$EX $EGDOODK0RKDPPDGLEQ-DELULEQ6LQDQDO 5DTTLDO+DUUDQLDO 6DELDO%DWWDQL+H ZDVDQ$UDEDVWURQRPHUZKRJRWDQH[WUHPHO\DFFXUDWHOHQJWKRIWKH\H DU GHWHUPLQHGWKHWLPHRIWKHHTXLQR[HVDQGFDOFXODWHGWKHLQFOLQDWLRQRIWKHHDUWK·V HTXDWRUWRLWVRUELWDOSODQH%DVHGRQKLVRZQREVHUYDWLRQVKLVZRUNJDYHLPSURYHG GHWDLOVRISODQHWDU\PRWLRQ+HDOVRZURWHRQDVWURORJ\LQFOXGLQJDFRPPHQWDU\ RQ3WROHP\·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

6DYRXUVELWWHUVRXUVKDUS





,QPDQKHUXOHVWKHVSOHHQ





+HUEV+HPORFN6WDUZRUW%HDUVIRRW:ROIEDQH)HUQZKLWH DQG EODFN +HOOHERUH +HQEDQH %XUGRFN 'UDJRQ 3DUVQLS 3RSS\ 3XOVH 0DQGUDNH 9HUYDLQ 1LJKWVKDGH 0RVV $QJHOLFD %R[ 7XWVDQ 2UDJH 6DJH %LWKZLQG 6SLQDFK &XPLQ )XPLWRU\ 6KHSKHUGVSXUVH +RUVHWDLO 7DPDULVN &DSHUV 3ROLSRG\ 6HQH +HPS6DYLQ5XH:LOORZWUHH3LQHWUHH
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±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

 DUH VRPHWLPHV XVHG LQ PHGLFLQH IRU JRXW DPHQRUUK±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

  6LJQVWULSOLFLW\   $JH  $QJHO  )ULHQGV  (QHPLHV  'D\RIWKHZHHN   5HJLRQV   $XVWULD   6RXWKZHVW,WDO\   &DSLWDORI5DYHQQDSURYLQFHLQ(PLOLD 5RPDJQDQRUWKFHQWUDO,WDO\QHDUWKH $GULDWLF6HDZLWKZKLFKLWLVFRQQHFWHGE\DFDQDO    (LWKHU7DUWXV:HVW6\ULD$ SRUWRQW KH0HGLWHUUDQHDQ6HD7DUWXVRFFXSLHVWKH DQFLHQWVLWHRI$QWDUDGXV,Q$'LWZDVUHEXLOWE\&RQVWDQWLQHDQGFDPHWREH NQRZQIRUDWLPHDV&RQVWDQWLD 2U&RQVWDQFH %DGHQ:UWWHPEHUJ6: *HUPDQ\RQWKH5KLQH5LYHUDWWKHZHVWHUQHQGRI/DNH&RQVWDQ FH%RGHQVHH  DQGQHDUWKH6ZLVVERUGHU7KHVHFRQGDSSHDUVPRVWOLNHO\   &LW\LQ%DYDULDVRXWKFHQWUDO*HUPDQ\RQWKH'DQXEH5LYHU   2UE  &RQFHSWLRQ   
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

&+$3,,2IWKH6LJQLILFDWLRQVDQG1DWXUHRI-XSLWHU

,1WKHQH[WSODFHZHDUHWRSURFHHGWR-XSLWHUZKRLVLQKHLJKWQH[WXQWR KLPKHLVPDVFXOLQHDQGWHPSHUDWHWKHJUHDWHUIRUWXQHEULJKWVKLQLQJDQG FOHDU WKH ELJJHVW VWDU LQ PDJQLWXGH DV WR RXU VLJKW  H[FHSW 9HQXV \HW DFFRUGLQJ WR 7\FKR KH H[FHHGV WKH JOREH RI WKH HDUWK LQ ELJQHVV  WLPHV $OERWHJQLXVVD\VWLPHV$OIUDJDQXVWLPHV\HWPDQ\RIODWHKROGKLPWR EHHTXDOLQELJQHVVZLWK6DWXUQ  

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

  0HDQDQGGLXUQDO PRWLRQ  5HYROXWLRQ  'LVWDQFHIURPWKHHDUWK   MZKHQZHOOIRUWLILHGDQG/RUGRIWKH\HDU   :KHQZHDN  +XPRXUV  4XDOLW\RIPHQZKHQZHOOSODFHG   3DUVRQ   4XDOLW\RIPHQZKHQZHDN   $QLWLQHUDQWFKDUODWDQGRFWRURQHZKRGLVSHQVHVPHGLFLQHIUR PDWDEOH   4XDFNFKDUODWDQGRFWRU   One who follows an empirical method; one who relies upon practical experience. one who confines himself to applying the results of mere experience or his own observation; especially, in medicine, one who deviates from the rules of science and regular practice; an ignorant and unlicensed pretender; a quack; a charlatan.  1DWXUH  

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

  &RUSHUDWXUHRUW\SHRIERG\  2ULHQWDO  2FFLGHQWDO  1RUWKODWLWXGH  6RXWKODWLWXGH  4XDO2IPHQ  6DYRXUV  &RORXUV  ,QPDQ  6SLFHKHUEVDQGGUXJV  :DOOIORZHU   :RRGEHWRQ\6WDFK\V%HWRQLFDNQRZQDVELVKRSVZRUWKLJKO\SRSXODUFXUHDOO WKRXJKHVSHFLDOO\XVHGIRUKHDGDFKHV   )XPDULDRIILFLQDOLV   6WLFWDSXOPRQDULDDOVRNQRZQDV-HUXVDOHPFRZVOLSDPHPEHURIWKHERUDJH  WULEHLW·VOHDYHVDUHXVHGIRUFRXJKVDQGFDWDUUK   5RRWRIIHUQRIWKHSRO\SRG\IDPLO\   2UHJDQR   3UXQHOODYXOJDULVODQFHRODWD$OVRNQRZQDVZRXQGZRUW/RZJURZLQJ SHUHQQLDOSXUSOHIORZHUHGKHUEFRPPRQLQRSHQZRRGVODZQVURDGVLGHV JUDVVODQGV DQGVWUHDPEDQNV8VHGWRWUHDWWKURDWFRQGLWLRQVDQGLQWHUQDOEOHHGLQJ  



%XJORVV %RUDJH 6W -RKQVZRUW /DVNZRUW 3HRQ\ /LTXRULFH 9LROHWV 3RPHJUDQDWHV0LQW0DVWL[6DIIURQ'DLV\DQG)HYHUIHZDQGDOOVXFK KHUEVDVDUHKHOSIXOWRREVWUXFWLRQVRIWKH/LYHU F   7KH $OPRQGWUHH +D]HO )LJWUHH 2OLYHWUHH 2DN &KHUU\WUHH $VK*RRVHEHUU\WUHH3LQHWUHH&RUDOWUHH3HDUWUHH%LUFKWUHH,Y\9LQH 0XOEHUU\WUHH F   2I %LUGV KH UXOHV WKH (DJOH 3HDFRFN 3KHDVDQW 3DUWULGJH 6WRFNGRYH6QLSH6WRUN/DUN%HHV F   7KH 7RSD] $PHWK\VW 0DUEOH (PHUDOG &U\VWDO 6DSSKLUH +\DFLQWK%H]RDU)UHHVWRQH F

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



7LQ3HZWHU F





7KH:KDOH6HUSHQW'ROSKLQ F





7KH6KHHS8QLFRUQ'RH+DUW6WDJ2[(OHSKDQWDQGDOOVXFK EHDVWVDVDUHEHQHILFLDODQGXVHIXOWRPDQNLQG   &KXUFKHV QHDW DQG FXULRXV SODFHV *DUGHQV 6\QRGV &RXUWV RI -XVWLFH:DUGUREHV3DODFHVVZHHWSODFHV2UDWRULHV   +H FRPPRQO\ FDXVHV SOHDVDQW KHDOWKIXO ZHDWKHU VHUHQLW\ WHPSHUDWH$LU F   +HUXOHVWKH1RUWKDQG1RUWKHDVWZLQGV   +HUXOHVRIWKH&HOHVWLDOVLJQV6DJLWWDULXVDQG3LVFHV6DJLWWDULXVE\ GD\DQG3LVFHVE\QLJKWWKHPHDQLQJWKHUHRILVWKDWLI-XSLWHUEHVLJQLILFDWRU 

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·VORYHRIPDQNLQG7KHXQLFRUQLVVDLGWRKDYHOHDSHGLQWRWKHYLUJLQ·V ODS DQGVKHVXFNOHVLWDQGOHDGVLWWRWKHNLQJ·VSDODFH0HGLHYDOZULWHUVWKXVOLNHQHG WKHXQLFRUQWR&KULVWZKRUDLVHGXSDKRUQRIVDOYDWLRQIRUPDQNLQGDQGGZHOWLQ WKHZRPERIWKH9LUJLQ0DU\2WKHUZHOO NQRZQOHJHQGVWHOORIWKHXQLFRUQ·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

 &+$3,,,2IWKH1DWXUHDQG6LJQLILFDWLRQVRI0$56

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

  -RXUQH\V   'LVHDVHV  $VWURNHRUVXGGHQORVVRIFR QVFLRXVQHVVFDXVHGE\WKHUHVWULFWLRQRIDEORRG YHVVHOLQWKHEUDLQ   6ZHOOLQJRIWKHWKURDW   6WDWLRQDU\   5HWURJUDGH  7KHQDWXUHDQGFRPSOH[LRQRI K  *OREHRIK  'LVWDQFHIURPWKHHDUWK   0HDQDQGGLXUQDOPRWLRQ   5HYROXWLRQ  



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

  KZKHQZHOOIRUWLILHG   :KHQLOOSODFHG   +XPRXUV  4XDOLWLHVRIPHQZKHQZHOOSODFHG   .QLIHVHOOHURUVKDUSHQHU   :KHQLOOSODFHG   1DWXUH  &RUSHUDWXUHRUVKDSH RIERG\  :KHQRULHQWDO   :KHQRFFLGHQWDO   1RUWKODWLWXGH 

 



6KDUSELWWHUDQGXQSOHDVDQW





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



%ORRGVWRQH /RDGVWRQH -DVSHU 7RXFKVWRQH $GDPDQW WKH $PHWK\VWRIGLYHUVHFRORXUV,URQ6WHHO$UVHQLF$QWLPRQ\%ULPVWRQH DQGUHG9HUPLOOLRQ   7KH6KDUN3LNH%DUEHO)RUNILVKDOOVWLQJLQJ:DWHU6HUSHQWV DQGKXUWIXO)LVK   7KH0DVWLII:ROI7LJHU&RFNDWULFH3DQWKHUDQGDOOVXFKEHDVWV DVDUHUDYHQRXVDQGEROG   7KXQGHU OLJKWQLQJ ILHU\PHWHRUV SHVWLOHQWLDO $LU DQG LQ LW VWUDQJHDSSDULWLRQV F   $OO SODFHV WKDW DUH DSSHUWDLQLQJ WR ILUH DQG EORRG DV VODXJKWHUKRXVHV)XUQDFHV6PLWKVVKRSV F   +HUXOHVDQGFDXVHV:HVWHUQZLQGV   2IWKH&HOHVWLDOVLJQVKHUXOHV$ULHVDQG6FRUSLR   +HKDV7ULSOLFLW\RU5XOHRYHUWKHZDWHU\7ULSOLFLW\RU7ULJRQYL] WKHVHVLJQVZKLFKDUH&DQFHU6FRUSLRDQG3LVFHVKHKDVDEVROXWHGRPLQLRQ 

  %LUGV  6WRQHV  /\GLDQVWRQHEDVDQLWH VRFDOOHGEHFDXVHXVHGWRWHVWWKHSXULW\RIJROGDQG VLOYHUE\WKHVWUHDNZKLFKLVOHIWXSRQWKHVWRQHZKHQLWLVUXEEHGE\WKHPHWDOVHH EDVDQLWHDQ\WHVWRUFULWHULRQE\ZKLFKWKHTXDOLWLHV RIDWKLQJDUHWULHG   $VWRQHRQFHEHOLHYHGWREHLPSHQHWUDEOHLQLWVKDUGQHVV$QH[WUHPHO\KDUG VXEVWDQFH$OVRXVHGLQ2OG(QJOLVKWRPHDQPDJQHW$VWKHQDPHRIDQ\VWRQHRI LPSHQHWUDEOHKDUGQHVVLWLVRIWHQWKHQDPHJLYHQWRWKHGLDPRQG   $EOXHZKLWHPHWDO
WKHUHLQERWKQLJKWDQGGD\\HWVRPHRIWKH$QFLHQWVGRMRLQZLWKKLPWKH 0RRQ F   +HKDVH[DOWDWLRQLV&DSULFRUQLQWKHWKGHJ   +HVXIIHUVGHWULPHQWLQ/LEUDDQG7DXUXV   +HLVLQKLV)DOOLQWKHGHJRI&DQFHU   )URPWLOO   6DPDHO   +LV(QHP\LVWKH0RRQRQO\   +LV)ULHQGVDUH6DWXUQ-XSLWHU6RO9HQXVDQG0HUFXU\   2IWKHGD\VRIWKHZHHNKHUXOHV7XHVGD\DQGRIWKHQLJKWVWKDW QLJKWZHYXOJDUO\FDOO)ULGD\QLJKW   -HUXVDOHPWKH5RPDQ(PSLUHHYHQWRWKH:HVW F   +LV2UELVVHYHQGHJUHHVEHIRUHDQGDIWHUDQ\$VSHFW  +LVJUHDWHVW\HDUVDUH +LVJUHDWHU\HDUVDUH +LVPHDQ\HDUVDUH +LVOHDVW\HDUVDUH   ,QMRXUQH\VKHSRUWHQGVWKLHYLQJVDFNLQJUREELQJVOD\LQJPXFK GDQJHURUKXUWVYL]WRWKH7UDYHOOHULI0DUVEHVLJQLILFDWRUDQGZHDNDQG LOOSODFHG FRIWKHZKLFKPRUHKHUHDIWHULQRXU7UHDWLVHRI(OHFWLRQV   )HYHUV DQGWKRVHEXUQLQJFRQWDJLRXVDQGSHVWLOHQWLDO0HJULPV RYHUIORZLQJRIWKH*DOO)UHQ]LHVWKH3ODJXHGLVWHPSHUVWKURXJKWKHZKROH ERG\6KLQJOHV)LVWXODV6WRQHLQWKHUHLQV\HOORZ-DXQGLFHDQGDOOVXFK GLVHDVHVDVSURFHHGIURPH[FHVVRI&KROHU3DVVLRQDQG$QJHUDOOGLVHDVHV SURFHHGLQJIURPWKH*DOO3XWUHIDFWLRQRIEORRG F   ([DOWDWLRQ   'HWULPHQW   )DOO  $JH  $QJHO  (QHPLHV  )ULHQGV  'D\RIWKHZHHN   5HJLRQV  2UE  -RXUQH\V   'LVHDVHV  .LGQH\VWRQHV 

 



+HLV6WDWLRQDU\WZRRUWKUHHGD\VEHIRUH5HWURJUDGDWLRQDQGWZR GD\VEHIRUHGLUHFWLRQ   +HLV5HWURJUDGHGD\V    



&+$3,92IWKH1DWXUHDQG6LJQLILFDWLRQVRIWKH681

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

  6WDWLRQDU\   5HWURJUDGH  7KHRUGHURIWKHSODQHWV   6XPPRQVDVLQ´EHFNDQGFDOOµ   

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·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



7KH %D\WUHH WKH $VK &HGDU ,Y\ WKH 9LQH WKH 2UDQJH DQG /HPPRQWUHH   7KH3KRHQL[6ZDQ&RFN+DZN1LJKWLQJDOH/DUNWKH%X]]DUG F   $WLWHVWKHVWRQHFDOOHGWKHH\HRIWKH6XQEHFDXVHLWLVOLNHWKH DSSOHRIWKHH\HLQIRUPWKH&DUEXQFOHWKH&KU\VROLWHWKHVWRQHFDOOHG,ULV WKHVWRQH+HOLRWURSLRQWKH+\DFLQWKWKHVWRQH3\UR\SK\OXVWKHVWRQH 

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·V XVHGWRLQFUHDVHWKHDSSHWLWHDQGEHQHILWGLJHVWLRQ   7UHHV  %LUGV  6WRQHV  $PDJLFDOVWRQHFRPSRVHGRIR[LGHRILURQZLWKDOLWWOHVLOH[DQGDOXPLQD VXSSRVHGO\IRXQGLQWKHQHVWQHFNRUVWRPDFKRIDQHDJOHWKDWZDVWKRXJKWWR RIIHUSURWHFWLRQLQFKLOGELUWKDPRQJRWKHUPDJLFDODQGPHGLFLQDOSURSHUWLHV7KH VWRQHLVELJZLWKDQRWKHULQVLGHLWZKLFKUDWWOHVDVLILQDMDUZKHQ\RXVKDNHLW,W VKRXOGEHZRUQERXQGWRWKHDUPWRSUHYHQWDERUWLRQDQGRQWKHWKLJKWRDLG SDUWXULWLRQ$OVRNQRZQDV$TXLODHXVDQG7KH(DJOH6WRQH   3UREDEO\JDUQHW$ beautiful gem of a deep red color (with a mixture of scarlet) called by the Greeks anthrax; found in the east indies. when held up to the sun, it loses its deep tinge, and becomes of the color of burning coal. the name belongs for the most part to ruby sapphire, though it has been also given to red spinel and garnet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

 

+LV(QHP\6DWXUQRQO\





+HUXOHV6XQGD\RIWKHGD\VRIWKHZHHNDQGRIWKHQLJKWVWKDW ZKLFKZHFDOO:HGQHVGD\QLJKW   +HUXOHVWKHIRXUWK&OLPDWH,WDO\%RKHPLD6LFLOLD&DOGHDWKH 5RPDQ(PSLUH   ,VGHJUHHVEHIRUHDQGDIWHUDQ\$VSHFW   ,QFRQFHSWLRQKHUXOHVWKHIRXUWKPRQWK   +LVJUHDWHVW\HDUVDUH 


 &+$392IWKH1DWXUHDQG6LJQLILFDWLRQVRI9(186



, &RPH QRZ WR9HQXV ZKR LV QH[W XQGHU 6RO VKH LV WKH OHVVHU )RUWXQH WUDQVSDUHQW EULJKW DQG VKLQLQJ VKH LV YHU\ ZHOO NQRZQ E\ WKH &RXQWU\ SHRSOHE\WKHQDPHRIWKH(YHQLQJ6WDUZKHQVKHVHWVDIWHUWKH6XQDQG VKHLVVRPHWLPHVE\WKHPFDOOHGWKHPRUQLQJ6WDUZKHQVKHULVHVEHIRUHWKH



  (QHPLHV   'D\RIWKHZHHN   5HJLRQV  :LWK0RUDYLDDQG&]HFK6LOHVLD%RKHPLDFRQVWLWXWHVWKHWUDGLWLRQDO&]HFK /DQGVDQGLQLWVEURDGHUPHDQLQJ%RKHPLDLVRIWHQXQGHUVWRR GWRLQFOXGHWKLV HQWLUHDUHDZKLFKXQWLOZDVD+DSVEXUJFURZQODQG3UDJXHLVWKHWUDGLWLRQDO %RKHPLDQFDSLWDO   &KDOGHD   2UE  &RQFHSWLRQ   
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

  %LUGV  $EXUURZGXFNDGXFNWKDWEUHHGVLQKROHVXQGHUFOLIIV   6WRQHV  0LQHUDOV  )LVKHV  6HDVSXUJH   %HDVWV  5DEELW  :HDWKHU  :LQG  3ODFHV  6LJQV  7ULSOLFLW\  ([DOWDWLRQ  'HWULPHQW  

6KHLVLQKHU)DOOLQWKHWKGHJRI9LUJR





)URPWR





$QDWHO





6DWXUQRQO\





)ULHQGVDUH-XSLWHU0DUV6RO0HUFXU\DQG/XQD





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

  )DOO  $JH  $QJHO  (QHP\  )ULHQGV  'D\RIWKHZHHN   5HJLRQV  1RUWKHUQ,WDO\   3RODQG   7KH3DUWKLDQ (PSLUH UXOHGWKH,UDQLDQSODWHDXDQGLQWHUPLWWHQWO\FRQWUROOHG 0HVRSRWDPLDEHWZHHQDERXW%&(DQG&(1RUWKHU Q,UDQDQGHDVWRI6\ULD   2UE  
6KHLVWZRGD\V6WDWLRQDU\EHIRUH5HWURJUDGDWLRQDQGWZRGD\V EHIRUH'LUHFWLRQ   6KHLVGD\V5HWURJUDGH  



 &+$39,2IWKH1DWXUHDQG6LJQLILFDWLRQVRI0(5&85<



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

  6WDWLRQDU\   5HWURJUDGH  &RPSOH[LRQRIIKLVSODFH  6LJQVWRWKHH\H   *OREHRII  1DWXUHRII  0HDQPRWLRQ   'LXUQDO  $QQXDOPRWLRQ   IZKHQZHOOIRUWLILHG   

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

  4XDOLW\RIPHQZKHQZHOOGLJQLILHG   :KHQLOOSODFHGDQGZHDN  /DZ\HUZLOOLQJWRXQGHUWDNHDQ\FDVH3HWW\XQVFUXSXOR XVODZ\HU   1DWXUH  &RUSHUDWXUH  2ULHQWDO  2FFLGHQWDO  1RUWKODWLWXGH  6RXWKODWLWXGH  6DYRXUV  &RORXUV  $KRWFKSRWFKMXPEOHRUFRQIXVHGPHGOH\   ,QPDQ  +HUEVDQGGUXJV  )XPDULDRIILFLQDOLV$OVRNQRZQDVHDUWKVPRNHEHJJDU\IXPXV YDSRXUQLGRU IXPXVWHUUDHIXPLWHUU\VFKHLWHUHJLWDXEHQNURSSNDSKQRVZD[GROOV$VPDOO  

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

  :HDWKHU   :LQGV  3ODFHV  6LJQV  7ULSOLFLW\   ([DOWDWLRQ   'HWULPHQW   )DOO  $JHV  $QJHO  (QHPLHV   )ULHQGV  'D\RIWKHZHHN   5HJLRQV  )RUPHUFRXQW\LQWKH/RZ&RXQWULHVH[WHQGLQJDORQJWKH1RUWK6HDDQG:RI WKH6FKHOGW(VFDXW 5LYHU   



+LV2UELVVHYHQGHJUHHVEHIRUHDQGDIWHUDQ\$VSHFW





+HUXOHVWKHVL[WKPRQWK





+LVJUHDWHVW\HDUVDUH +LVJUHDWHU\HDUVDUH  +LVPHDQ\HDUVDUH  +LVOHDVW\HDUVDUH    ,Q -RXUQH\V KH LVDFFRUGLQJDVKHSODFHGDQGLQ$VSHFWZLWKWKH RWKHU3ODQHWV   9HUWLJRV /HWKDUJLHV 0DGQHVV )UHQ]LHV 'LVHDVHV RI WKH EUDLQ  3WLVLFN 6WDPPHULQJV'HIHFWVLQWKHPHPRU\+RDUVHQHVV'U\FRXJKWKH +DQGDQG)HHWJRXWDOOLPSHUIHFWLRQVLQWKH)DQF\   +HLV6WDWLRQDU\RQHGD\EHIRUH5HWURJUDGDWLRQDQGRQHGD\ EHIRUHGLUHFWLRQ   +HLV5HWURJUDGHGD\V   



 &+$39,,2IWKH1DWXUHDQG6LJQLILFDWLRQVRIWKH0RRQ

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

  2UE  ,QFRQFHSWLRQ   
 



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

  'LVWDQWIURPWKHHDUWK  1DWXUHRIG  0HDQPRWLRQ  'LXUQDO  5HYROXWLRQ  GZKHQZHOOSODFHG  :KHQLOOSODFHG  &RUSHUDWXUH  2ULHQWDO  2FFLGHQWDO  1RUWKODWLWXGH  6RXWKODWLWXGH

 

6KHVLJQLILHVFRPPRQSHRSOH





RI

)UHVKZDWHULVKWDVWHVRUVXFKDVRQHFDQKDUGO\VD\ZKDWWDVWHLWLV





6LOYHUFRORXUZKLWHDSDOHJUHHQDQGDSDOH\HOORZ





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

  4XDOLW\RIPHQ  6DYRXUV  &RORXUV  ,QPDQ  2IH[FUHPHQW   +HUEV  $Q\RIYDULRXVEURZQDOJDHHVSHFLDOO\RIWKHJHQXV /DPLQDULD)RUPRIVHDZHHG   A small genus of European herbs of the mustard family, including the herb honesty (lunaria annua), which is also called moonwort and lunary.   6FKLQRVRUPDVWLFWUHH3LVWDFLD/HQWLVFXV$VPDOOHYHUJUHHQVKUXERIWKH 0HGLWHUUDQHDQUHJLRQFXOWLYDWHGIRULWVUHVLQ6WLPXODQWGLXUHWLF   3XPSNLQ   7UHHVDQGSODQWV   %LUGV  6WRQHV  0LQHUDOV  )LVKHV  &DWILVK   $Q\RQHRIVHYHUDOVSHFLHVRIILVKHVEHORQJLQJWR(FKHQHLV5HPRUDDQGDOOLHG JHQHUD&DOOHGDOVRVXFNLQJILVK   



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

  %HDVWV  3ODFHV  :HDWKHU  :LQG  6LJQV  7ULSOLFLW\   ([DOWDWLRQ   'HWULPHQW  )DOO  $JH  $QJHO  (QHPLHV  )ULHQGV  

2I WKH GD\V RI WKH ZHHN VKH UXOHV 0RQGD\ DQG WKDW QLJKW ZH FRPPRQO\ FDOO 7KXUVGD\ QLJKW 'HQPDUN +ROODQG =HDODQG )ODQGHUV 1RULQEHUJH   +HU2UELVWZHOYHGHJUHHVEHIRUHDQGDIWHUDQ\$VSHFW   +HUJUHDWHVW\HDUVDUH +HUJUHDWHU\HDUVDUH +HUPHDQ\HDUVDUH +HUOHDVW\HDUVDUH  ,QFRQFHSWLRQVKHUXOHVWKHVHYHQWKPRQWK   $FFRUGLQJDVVKHLVVWURQJRUZHDNVWUHQJWKHQHGRUGHELOLWDWHG   0HJULPV)UHQ]LHV$SRSOH[LHV9HUWLJRHV:LQG&ROLF'LVHDVHV LQ WKH EODGGHU 7HVWLFOHV DQG OHIWVLGH DQG LQ WKH OLYHU RI ZRPHQ DQG PHPEHUV RI *HQHUDWLRQ 0HQVWUXHV )OX[HV FROG 5KXPHV %HOFKLQJV FROG VWRPDFK KXUWV LQ WKH OHIW H\HV RI PHQ DQG ULJKW RI ZRPHQ 6FLDWLFD 6XUIHLWV &RXJKV &RQYXOVLRQV )DOOLQJVLFNQHVV $SRVWKXPHV VPDOO 3R[ 0HDVOHVDQGWKH.LQJVHYLO   6KHLVQHYHUVWDWLRQDU\   1RU5HWURJUDGHEXWZKHQVKHJRHVOHVVWKHQGHJLQKRXUV VKHLVDFFRXQWHGHTXLYDOHQWWRD3ODQHWUHWURJUDGHEXWLQKHURZQSURSHU PRWLRQVKHHYHUPRYHVGLUHFWIRUZDUG   



 &+$39,,,2IWKH(VVHQWLDO'LJQLWLHVRIWKH3ODQHWV

,KDYHDOUHDG\VKRZHGWKH1DWXUHVDQG6LJQLILFDWLRQVRIWKH3ODQHWV,DP FRPHQRZWRVKRZWKHLUHVVHQWLDO'LJQLWLHVZLWKRXWWKHZKLFKWKHUHFDQQR SDUWRIWKLV$UWEHXQGHUVWRRGRULQGHHGEHDQ\ZLVHEHQHILFLDOZKHUHIRUHLW LVQHFHVVDU\WKDWDOOWKH6WXGHQWVKHUHLQZDULO\REVHUYHWKHLU)RUWLWXGHVDQG   'D\RIWK HZHHN  1XUHPEHUJ*HUPDQ\   2UE  
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

$7DEOHRIWKHHVVHQWLDO'LJQLWLHVRIWKH3ODQHWVDFFRUGLQJWR3WROHP\ 

 7KHXVHRIWKH7DEO H



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αηDQGDJDLQRYHUDJDLQVW9ZKLFK   :KHQDSODQHWLVHVVHQWLDOO\GLJQLILHGRUIRUWLILHG   

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

$7DEOHVKRZLQJWKH)RUWLWXGHVDQG'HELOLWLHVRIWKH3ODQHWV (VVHQWLDO'LJQLWLHV  $3ODQHWLQKLVRZQKRXVHRU PXWXDOUHFHSWLRQE\KRXVHVKDOO KDYHGLJQLWLHV  ,QH[DOWDWLRQRUUHFHSWLRQE\  H[DOWDWLRQ  ,Q7ULSOLFLW\  ,Q7HUP  ,QGHFDQDWHRUIDFH  $FFLGHQWDO)RUWLWXGHV  ,Q0HGLXP&RHOL RUDVFHQGDQW  ,QWKHRUKRXVHV  ,QWKHRU  ,QWKH

             



'HELOLWLHV  ,Q'HWULPHQW    ,Q)DOO  3HUHJULQH    $FFLGHQWDO'HELOLWLHV  ,QWKHKRXVH  ,QWKHRU  5HWURJUDGH  6ORZLQPRWLRQ 

 

           





 ,QWKH 'LUHFW 6ZLIWLQPRWLRQ 6MRUKRULHQWDO JDQGIRFFLGHQWDO GRFFLGHQWDORULQFUHDVLQJ )UHHIURPFRPEXVWLRQDQGV EHDPV ,Q&D]LPL ,Q3DUWLOT ZLWKMDQGJ ,Q3DUWLOTZLWKN ,Q3DUWLOXZLWKMRUJ

       

 6MDQGKRFFLGHQWDO JDQGIRULHQWDO GGHFUHDVLQJLQOLJKW &RPEXVWRIV 8QGHUVEHDPV 3DUWLOTZLWK6RUK 3DUWLOTZLWK"

       

   

   

,Q3DUWLOUZLWKMRUJ ,QTZLWK&RUQ LQGHJRI Q ,QTZLWK6SLFDPLQGHJ7

 

%HVLHJHGRI6 RUK 3DUWLOT  RI6RUK 3DUWLOWRIRI6RUK ,Q&RQMXQFWLRQZLWK&DSXW $OJROLQGHJUHHVRI7DXUXV  











 &+$3,;6KRZLQJWKH8VHRIWKHVHIRUPHUGLJQLWLHV F

 



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

  :KDWDSODQHWLQKLVRZQKRXVHVLJQLILHV   What a planet signifies in his exaltation.  ,QWULSOLFLW\  ,Q7HUP  ,QIDFH  

FRXUVHWRWDNHDQGVRMXGJHRIDQ\WKLQJVLJQLILHGWREHHLWKHULQDJRRGRU EDGFRQGLWLRQDFFRUGLQJWRWKHVWUHQJWKRIWKHVLJQLILFDWRU  

 &+$3;2IWKH+RXVHVRIWKH3ODQHWVDQGZKHUHIRUHWKH\ZHUHVR GLVWULEXWHG

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

 &+$3;,2IWKH([DOWDWLRQVDQG)DOORIWKH3ODQHWVDQGZKHUHIRUH WKH\ZHUHVRFRQVWLWXWHG

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



 &+$3;,,2IWKH7ULSOLFLWLHVRIWKH3ODQHWVDQGWKH5HDVRQVZK\ WKH\ZHUHVRDSSRLQWHG

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

  2I6  2IM  2IK  2IJ  2II  :KDWDWULSOLFLW\LV   +RZPDQ\  +RZQRPLQDWHG   2IZKDWVLJQVWKH\FRQVLVW   

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·V KRXVH ZKHUHIRUH 6DWXUQ KDV FKLHI 'RPLQLRQ LQ WKLV 7ULSOLFLW\ \HW VRPH KDYH MRLQHG -XSLWHU LQ VLJQLILFDWLRQ ZLWKWKHPE\UHDVRQRIKLVWHPSHUDQF\   0DUVERWKQLJKWDQGGD\KDVDVVLJQHGKLPFKLHI'RPLQLRQRIWKH :DWHU\7ULSOLFLW\WKLV7ULSOLFLW\LV1RUWKHUQFHUWDLQO\WKHUHDVRQZK\0DUV ZDVDVVLJQHGFKLHI5XOHRIWKH:DWHUZDVWRFRROKLVFRXUDJHDQGDEDWHKLV KHDWIRUZHVHHKHLVPRUHSRZHUIXOWRZRUNKLVPLVFKLHYRXVSUDQNVLQ/HR WKHQ LQ &DQFHU IRU KH KDYLQJ GRPLQLRQ DQG UXOH LQ&DQFHU KH ZRUNV QRW DOWRJHWKHUVRPXFKPLVFKLHI\HWLVKHLQ)DOOLQ&DQFHUEXW3HUHJULQHLQ/HR  ZKHUHIRUHD3ODQHW3HUHJULQHLVZRUVHWKHQD3ODQHWLQ)DOOLIKHEHEXWLQD WHUP\HWVRPHRIWKH$QFLHQWVKDYHMRLQHG9HQXVDQGWKH0RRQZLWK0DUV E\UHDVRQ&DQFHULVWKH0RRQVKRXVHDQG3LVFHVWKH([DOWDWLRQRI9HQXV   9HQXV DQG /XQD DUH DSSRLQWHG FKLHI *RYHUQHVVHV RI WKH (DUWK\7ULSOLFLW\ZKLFKLV)HPLQLQHDQG6RXWKHUQFROGDQGPRLVWFDXVLQJ 6RXWKHDVW ZLQGV FROG DQG PRLVW $LU DQG WKHUHIRUH DVVLJQHG WR WKHVH )HPLQLQH3ODQHWV    

&+$3;,,,2IWKH7HUPVRIWKH3ODQHWVZKHUHIRUHVRFDOOHGDQGVR DVVLJQHGWRHYHU\RIWKHILYH3ODQHWV

+HUHQRZ\RXPXVWNQRZWKH6XQDQG0RRQKDYHQRWHUPV$7HUPLVD FHUWDLQQXPEHURIGHJUHHVZKLFKLQHDFKVLJQZKHWKHULWEHH[DOWDWLRQRU KRXVH  HYHU\ RI WKHVH ILYH 3ODQHWV YL] 6DWXUQ -XSLWHU 0DUV 9HQXV DQG 0HUFXU\KDYHDSULRULW\ZKLFKE\ORQJVWXG\DQGH[SHULHQFHZDVDWWKHODVW E\*RGVDVVLVWDQFH IRXQGRXWE\WKH$QFLHQWV 



  VDQGMWKHILHU\WULSO LFLW\  6DQGIWKH$LU\  KRQO\WKHZDWHU\   JDQGGWKH(DUWK\   :KDWDWHUPLV   

7KH\ DUH FDOOHG 7HUPV (QGV RU %RXQGV IRU WKDW WKH 3ODQHWV KDYH WKHLUSURSRUWLRQVRDOORWWHGWKHPWKDWDWWKHHQGRIVRPDQ\GHJUHHVEHJLQ WKHERXQGVWHUPVRUHQGVRIDQRWKHU3ODQHW$VIRUH[DPSOHIURPWKHILUVW GHJUHHRI$ULHVWRWKHVL[WKLVWKHWHUPHQGRUERXQGVRI-XSLWHUIURPWKH WRWKHLVWKHWHUPRI9HQXV F   3WROHP\ $OEXPD]HU DQG %RQDWXV VKRZ WKDW WKH JUHDWHU \HDUV RI WKH3ODQHWVDUHIRXQGRXWE\WKHLUVHYHUDOWHUPVWKURXJKWKH=RGLDFZKLFK LVQRPRUHEXWWKLVORRNZKDWQXPEHURIGHJUHHVHYHU\3ODQHWKDVDVVLJQHG KLPLQHYHU\VLJQDQGDGGWKHPWRJHWKHUDQGWKH\PDNHWKHMXVWQXPEHU RIWKHLUJUHDWHU\HDUVDV\RXKDYHWKHPEHIRUHDVIRU ([DPSOHPRUHSODLQO\    

 6LJQV [

6  

 

M

F Y E Q P ; & 9 % 1 0 *UHDWHU \HDUV

           

           

K 7HUPV              

J

I



 

           

           

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

&+$3;,96KRZLQJWKHXVHZKLFKLVWREHPDGHRIWKH7HUPV

5HPHPEHU WKDW D 3ODQHW LQ KLV RZQ 7HUP LV VWURQJ DQG WKDW WKH PRUH GLJQLWLHV KH KDV WKHUH WKH VWURQJHU KH LV IRU -XSLWHU LQ WKH ILUVW WHUP RI 6DJLWWDULXVLVVWURQJHUDQGPRUHSRZHUIXOWKHQLQWKHILUVWWHUPRI$ULHV\HW WKH\DUHERWKKLVWHUPVWKHUHDVRQLVEHFDXVH6DJLWWDULXVLVERWKKLV+RXVH   7KHUHDVRQZK\WKHWHUPVDUHVRDWWULEXWHGWRWKH3ODQHWV   

DQG 7ULSOLFLW\ $ULHV LV EXW KLV 7ULSOLFLW\ RQO\ ZKHUHIRUH \RX VHH LQ 6DJLWWDULXVKHKDVWKHILUVWHLJKWGHJUHHVIRUWKLVWHUPLQ$ULHVEXWVL[DQGVR REVHUYHWKHQHDUHUD3ODQHWLVLQQDWXUHWRWKHSODFHRIKLVWHUPWKHVWURQJHU LVWKH3ODQHWWKHUHLQIRU-XSLWHUEHLQJKRWDQGPRLVWKDVEXWILYHGHJUHHVIRU KLV WHUP LQ9LUJR ZKLFK LVFROGDQGGU\\HWLQ*HPLQLZKLFKLVKRWDQG PRLVW KH KDV VL[ LW DJUHHLQJ ZLWKKLVWHPSHU\HWLQ&DQFHUZKLFKLVFROG DQGPRLVW\RXZLOOSHUKDSVVD\ KHKDVVHYHQZKLFKDJUHHVQRWVRQHDUWR KLVQDWXUHEXWWKHUHDVRQWKHUHRILV&DQFHULVKLVKRXVHRI([DOWDWLRQDQGVR KDVDOORWWHGKLPRQHIRUWKDWDV\RXKDYHKHDUGEHIRUHIRU\RXPXVWNQRZ WKH PRUH GLJQLWLHV D 3ODQHW KDV LQ D VLJQ WKH VWURQJHU KH LV DQG KDV WKH JUHDWHUWHUPDOORWWHGKLP  ,Q OLNH PDQQHU LI D 3ODQHW WKDW LV FROG DQG GU\ EH LQ D WHUP VR OLNHZLVHTXDOLILHGYL]FROGDQGGU\DOVRKLVFROGDQGGU\QHVVLVWKHPRUH LQFUHDVHGDQGZLOOZRUNWKHPRUHIRUFLEO\RQWKH,QIHULRUVKHLVVLJQLILFDWRU RI REVHUYH WKH VDPHUXOHLQDOOWKHUHVWRIWKHTXDOLWLHVDQGKXPRXUVVWLOO UHPHPEHULQJ WKDW D 3ODQHW LV VR PXFK WKH PRUH LQFUHDVHG LQ VWUHQJWK E\ KRZ PXFK WKH PRUH KH LV ORFDWHG LQ WKH SODFHV RI KLV RZQ WHPSHU DQG QDWXUH  0RUHRYHUD3ODQHWWKDWLVKRWDQGGU\LVOHVVHQHGRIKLVYLJRXULQD WHUP WKDW LV FROG DQG PRLVW VR OLNHZLVH LV KH DXJPHQWHG LQ KHDW LI KH EH QDWXUDOO\FROGDQGPRLVWDQGLQDWHUPWKDWLVKRWDQGGU\  ,QOLNHPDQQHUQRWHWKDWLIDIRUWXQDWH3ODQHWEHLQDIRUWXQDWHWHUP ,VD\QRWHLQJHQHUDO KLVJRRGQHVVLVWKHPRUHLQFUHDVHGDQGDXJPHQWHG KDYLQJPRUHSRZHUDQGVWUHQJWKWRRSHUDWHLQDQ\WKLQJZKDWVRHYHUKHLV VLJQLILFDWRU RI DV LI KH KDYH VLJQLILFDWLRQ RI JRRG KH LV WKHQ VR PXFK WKH EHWWHU DQG RQ WKH FRQWUDU\ DQ HYLO RU PDOHYROHQW 3ODQHW LQ D PDOHYROHQW VLJQDQGWHUPLVWKHPRUHPLVFKLHYRXV  7KH /RUG RI D 7HUP ZKHQ KH LV LQ WKDW7HUPOHWLWEHZKDWVLJQLW ZLOOKDVPRUHSRZHUWKHUHLQWKHQWKH/RUGRIWKDWVLJQRUWKH3ODQHWWKDW KDV WKDW VLJQ IRU KLV ([DOWDWLRQ LI KH EH 3HUHJULQH DQ\ZKHUH ZKLFK LV DV PXFKWRVD\3RVVHVVLRQLVHOHYHQSRLQWVRIWKH/DZZKHQWKHUHLVEXWWZHOYH $QG LI WKH /RUG RI DQ\ WHUP EH LQ KLV WHUP DQG WKH /RUG RI WKH VLJQ LQ DQRWKHUVLJQLQDQ\$VSHFWZLWKKLPWKH/RUGRIWKHWHUPVKDOOKDYHPRUH SRZHU LQ WKH VLJQ ZKHUH KH LV WKHQ WKH /RUG RI WKH VLJQ DQG VKDOO EH SULQFLSDO VLJQLILFDWRU DQG LI WKH /RUG RI WKH WHUP EH LQ KLV RZQWHUPDQG VLJQKLVVWUHQJWKDQGSRZHULVVRPXFKWKHPRUHLQFUHDVHG  :KDWHYHU3ODQHWEHZHDNLQDVLJQWKDW3ODQHWVGHELOLW\LVOHVVHQHG ZKHQRUE\KLVEHLQJLQWKDWSDUWRIWKHVLJQKHEHZKHUHKHKDVDQ\WHUP DQGLIKHEHLQWHUPDQGVLJQERWKRIKLVRZQQDWXUHKHLVYHU\VWURQJDQG IRUWXQDWHDVDIRUHVDLG  



 



&+$3;9'HPRQVWUDWLQJWKH8VH1DWXUHDQG5HDVRQVRIWKH)DFHVRI WKH3ODQHWV

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

  2IWKHVHFRQG   2IWKHWKLUG  2IWKHILUVWIDFHRI Y  2IWKHVHFRQG   2IWKHWKLUG  2IWKHILUVWIDFHRI E  2IWKHVHFRQG   2IWKHWKLUG  2IWKHILUVWIDFHRI Q  2IWKHVHFRQG  2IWKHWKLUG

 



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

  2IWKHILUVWIDFHRI P  2IWKHVHFRQG   2IWKHWKLUG  2IWKHILUVWIDFHRI ;  2IWKHVHFRQG   2IWKHWKLUG  2IWKHILUVWIDFHRI &  2IWKHVHFRQG   2IWKHWKLUG  2IWKHILUVWIDFHRI 9  2IWKHVHFRQG   2IWKHWKLUG  2IWKHILUVWIDFHRI %  



0DUV KDV WKH VHFRQG IDFH RI&DSULFRUQ ZKLFK LV D IDFH RI VHHNLQJ WKLQJVWKDWFDQQRWEHDWWDLQHGQRUEURXJKWWRSHUIHFWLRQ   6RO KDV WKH WKLUG IDFH RI&DSULFRUQ ZKLFK LV D IDFH RI D FRYHWRXV GHVLUH WR UXOH DQG JRYHUQ RU KDYH ULFKHV DW KLV GLVSRVDO VXVSHFWLQJ DQG PLVWUXVWLQJKLPVHOI   9HQXV KDV WKH ILUVW IDFH RI $TXDULXV ZKLFK LV D IDFH RI FRQWLQXDO WURXEOHIRUPRQH\DQGSURILWQHYHUDWUHVWHYHULQODERXUDQGWRLO\HWSRRU DQGLQGLJHQW   0HUFXU\ KDV WKH VHFRQG IDFH RI $TXDULXV ZKLFK LV D IDFH RI FRPHOLQHVVDQGEHDXW\RIXQGHUVWDQGLQJPRGHVW\PLOGQHVVFOHPHQF\RI JRRGEHKDYLRXUDQGRIDKDQGVRPHFRPSRVHGVKDSH   /XQDKDVWKHWKLUGIDFHRI$TXDULXVZKLFKLVDIDFHRIFRQWHQWLRQV UHSLQLQJVDQGVWULIH   6DWXUQ KDV WKH ILUVW IDFH RI3LVFHV ZKLFK LV D IDFH WKDW LV QRW VDG SHQVLYHQRUGHMHFWHGLQKLVXQGHUWDNLQJVRIJRRGQDWXUHDQGKDQGVRPHRI PDQ\ WKRXJKWV DQG FRJLWDWLYH IOLWWLQJ IURP RQH SODFH WRDQRWKHU IRU WKH SURFXULQJKLPVHOIDQDPHDQGULFKHV   -XSLWHUKDVWKHVHFRQGIDFHRI3LVFHVZKLFKLVDIDFHRIKDXJKWLQHVV DQGDKLJKGLVSRVLWLRQVHHNLQJDIWHUJUHDWDQGKLJKWKLQJV   0DUVKDVWKHWKLUGIDFHRI3LVFHVZKLFKLVDIDFHRIFRQFXSLVFHQFH DQGOXVWDQGGHOLJKWZLWKZRPHQ\HWORYLQJUHVWDQGTXLHWQHVV  7KH 8VH RI DOO WKLV LV QR PRUH EXW LI \RX ILQG WKH FXVS RI WKH $VFHQGDQWLQWKH1DWLYLW\RIDQ\RQHLQDQ\RIWKHVHIDFHV\RXPD\MXGJH WKH1DWLYHWREHTXDOLILHGDV\RXKHUHILQG\RXUMXGJPHQWZLOOEHWKHPRUH FHUWDLQLI\RXILQGWKH/RUGRIWKH$VFHQGDQWWKH0RRQ3ODQHWEHKROGLQJ WKHDVFHQGDQWRU3ODQHWEHKROGLQJWKH/RUGRIWKHDVFHQGDQWRUWKH0RRQ RUERWKLQWKHVDPHIDFHRUIDFHVRIWKHVDPHQDWXUHWRGZHOOORQJHUKHUH ZHUHEXWYDLQVLQFHWKLVLVVRFOHDUDQGSODLQ   



  2IWKHVHFRQG   2IWKHWKLUG  2IWKHILUVWIDFHRI 1  2IWKHVHFRQG   2IWKHWKLUG  2IWKHILUVWIDFHRI 0  2IWKHVHFRQG   2IWKHWKLUG  

&+$3;9,2IWKH-R\VRIWKH3ODQHWV



0RUHRYHUWKH3ODQHWVDUHVDLGWREHLQWKHLUMR\VZKHQWKH\DUHLQWKRVH KRXVHVZKHUHWKH\DUHPRVWVWURQJDQGSRZHUIXODV 



6 M K V J I G

^

  

`

-R\VLQ

1 9 & Q F P E

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

 &+$3;9,,2IWKH+HDGDQG7DLORIWKH'UDJRQ

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

ZLWKUHDVRQEH\RXUJXLGHWLOO\RXFDQLQIRUP\RXUVHOILQZKDWLVQRWIXOO\ FRPSUHKHQGHGE\\RX   

 &+$3;9,,,2IWKH$QWLVFLRQVDQG&RQWUDQWLVFLRQVRIWKH3ODQHWV

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

  7KHIRUFHRIDQ$QWLVFLRQ   +RZWRNQRZWKH$QWLVFLRQVRIDSODQHW   7RNQRZWKH &QWUDQWLVFLRQRIWKH3ODQHW 

 

&+$3;,;6KRZLQJWKH5HDVRQVRIWKHQDPHVRIWKHVHYHQ3ODQHWVDQG WKHLU&KDUDFWHUV



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´)URP KHOSLQJ DVKHLVD KHOSIXOIDWKHU µ   :K\K  $VLI0DYRUV EHFDXVHKH WXUQVJUHDWWKLQJV 7KHSXQLVIURPWKHROG/DWLQQDPH IRU0DUV0DYRUVWKHV\OODEOHVRIZKLFKUHPLQG5DPHVH\RIWKHLQLWLDOV\OODEOHVRI

0$JQD DQG 9(5WHUHW ,W VLPSRVVLEOHLQ(QJOLVKWKRXJKDVDQH[DPSOHLPDJLQH WKDW0DUVZDVFDOOHG7 RUTXLODQGZHWRRNWKLVDVEHLQJUHODWHGWR WRUTXH WKH WXUQLQJIRUFHRIDQHQJLQH7KLVVRUWRIP\VWLFDOHW\PRORJ\ZKLFKDVVXPHVD KLGGHQPHDQLQJLQQDPHVDOOUHODWLQJEDFNWRDQRULJLQDOVDFUHGODQJXDJHVSRNHQ EHIRUHWKH7RZHURI%DEHOGLVSHUVHGWKH WRQJXHVRI0HQWXUQVXSDJDLQLQWKHWK FHQWXU\  :K\V  6RODVKH DORQH VKLQHV3XQRQVROXVDORQHDQGVROVXQ   :K\J  9HQHUDWH   :K\I  $VLQ ZDJHV IURP HDUQLQJ    

/XQDTXLDDOLHQDOXFHOXFHWVKLQLQJZLWKDERUURZHGOLJKW





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



&+$3;;2IWKHQXPEHURIWKH+HDYHQVDQG6SKHUHVWKHLUSODFHV RUGHUDQGPRWLRQV

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²DVVRFLDWLQJ ¶DOLHQD·ZLWKOXQD·   :K\WKH3ODQHWVDUHVRFKDUDFWHUHG   7KHQXPEHURIWKH+HDYHQV   7KHRUGHURIWKHKHDYHQV   %HLQJILUPDQGIL[HG   

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


 &+$3;;,2IWKH&LUFOHVRI+HDYHQWKH=RGLDFDQGWKHGLYLVLRQV WKHUHRI

:HFRPHQRZXQWRWKH&LUFOHVRI+HDYHQ
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

&+$3;;,,2IWKHWZHOYH&HOHVWLDO6LJQVDQGWKHLUPDQLIROG GLYLVLRQV

,+DYHVKRZHG\RXWKH+HDYHQVDUHGLYLGHGLQWRWZHOYHHTXDOSDUWVFDOOHG 6LJQV DQG WKH 5HDVRQV ZK\ WKH\ DUH VR FDOOHG LW UHVWV WKHUHIRUH QRZ , VKRZZKDWWKH\DUHFDOOHGZLWKWKHLUVHYHUDO&KDUDFWHUVDQGZK\MXVWWKHQXPEHU RI WZHOYH DQG FDOOHG E\ WKRVH QDPHV DQG ZK\ WKH\ EHJLQ DW $ULHV DQG QRW DW 7DXUXV *HPLQL RU &DQFHU RU DQ\ RWKHU VLJQ DQG VR SODFHG DV DOVR RI WKHLU 1DWXUHV DQG VLJQLILFDWLRQV %XW ILUVW OHW XV VSHDN RI WKHLU GLYLVLRQV DQG WKH VHYHUDOPDQQHUVWKHUHRIDQGWKHQSURFHHG   .QRZ WKHQ WKDW WKH  VLJQV DUH WKXV QDPHG DQG FKDUDFWHUHG $ULHV[7DXUXVF*HPLQLY&DQFHUE/HRQ9LUJRP/LEUD;6FRUSLR& 6DJLWWDULXV9&DSULFRUQ%$TXDULXV1DQG3LVFHV02IWKHVHVLJQVWKHUH   2IWKH0HULGLDQ   :KHUHIRUHVRFDOOHG   7KHQDPHVDQGFKDUDFWHUVRIWKHVLJQV 

 

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

&+$3;;,,,6KRZLQJWKHXVHZKLFKLVWREHPDGHRIWKHIRUPHU &KDSWHU

  %LFRUSHUHDOVLJQV   :KDWVLJQVDUH IUXLWIXOEDUUHQKXPDQHIHUDODQGPXWH   

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



 &+$3;;,9'HPRQVWUDWLQJWKH5HDVRQVRIWKHQDPHVRIWKHWZHOYH VLJQVDQGZK\WKHUHDUHMXVWWZHOYHDQGQHLWKHUPRUHQRUOHVV

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

  7KHUHDVRQZK\$ULHVLVFDOOHGE\WKDWQDPH   :K\F  :K\Y  :K\E  :K\Q  :K\P  :K\;  :K\&

 

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

 &+$3;;96KRZLQJWKH5HDVRQVZK\WKHVLJQVDUHUHFNRQHGIURP $ULHVDQGQRWIURPDQ\RWKHUVLJQDVDOVRZK\WKH\DUHQRWSODFHG DFFRUGLQJWRWKHRUGHURIWKHIRXU(OHPHQWV

 ,+DYHVDLGEHIRUHP\LQWHQWLRQLQDOOWKHVHP\:ULWLQJVLVQRWWRWUHDWRI DQ\WKLQJWKDWKDVEHHQDOUHDG\GHOLYHUHGWRWKH6WXGHQWVRIWKLVQREOH$UW E\ WKH ZHOOZLOOHUV WKHUHRI LQ D SODLQ PDQQHU DQG RXU YXOJDU WRQJXH IDUWKHUWKHQWRJLYHPHRFFDVLRQIRUZKDWLVP\GULIWYL]WRUHQGHUWRP\ ORYLQJ &RXQWU\PHQ DQG ZHOOZLOOHUV RI WKLV 6FLHQFH WKH UHDVRQV DQG JURXQGVRIWKH$UWDFFRUGLQJWRWKHPRVWUDWLRQDORIWKH$QFLHQWVWKDWWKH\ PD\ EH ERWK FRQILUPHG LQ WKHLUZD\DVDOVRWKHEHWWHUDEOHWRDQVZHUWKH   :K\9  :K\%  :K\1  :K\0

 

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

  :K\WKHVLJQVDUHQRWSODFHGDFFRUGLQJWRWKHRUGHURIWKH(OHPHQWV  



&+$3;;9,2IWKH1DWXUH6LJQLILFDWLRQDQG(TXDOLW\RIWKH6LJQV DQGILUVWRI$ULHV

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

/LQGDYLD%UXQVZLFN&UDFRYLD0DVVLOLD6HUDJRVVH%HUJDQXP &DVDULD3DGXD$XJXVWD8WUHFKW   7KHKHDGDQGIDFH  7RGLYLGHKHUHHYHU\5HJLRQRIWKH:RUOGDFFRUGLQJWRWKHGLYLVLRQ RIWKH+HDYHQVLQWRIRXUSDUWVDQVZHULQJWRWKHIRXU7ULSOLFLWLHVZRXOGEXW VSHQGWLPHDQG3DSHUDQGKLQGHUPHIURPKDVWLQJWRZKDW,UDWKHUGULYH DW:KHUHIRUHVLQFHWRHYHU\VLJQ\RXKDYHGHFODUHGWKH5HJLRQVDQG&LWLHV VXEMHFWWRWKHVDPH,SDVVE\WKHRWKHULQWKLVSODFHDQGUHIHUP\5HDGHUWR WKH SHUXVDO RI WKH VHFRQG DQG WKLUG &KDSWHUV RI WKH VHFRQG %RRN RI 3WROHP\·V4XDGULSDUWLWHWREHWKHUHLQLQVWUXFWHG  

2I7DXUXV

7DXUXV LV DQ HDUWK\ FROG GU\ PHODQFKRO\ GRPHVWLF IHPLQLQH IL[HG QRFWXUQDOEHVWLDOVLJQ6RXWKHUQDQGRIWKHHDUWK\7ULSOLFLW\   $VWURQJVKRUWZHOOVHWERG\DIXOOIDFHEURDGIRUHKHDGELJ H\HVDODUJHPRXWKWKLFNOLSVDVKRUWELJKDQGEODFNKDLUDQGLWFXUOLQJRU FULVSLQJ   $OOLQILUPLWLHVLQWKHQHFNDQGWKURDW.LQJVHYLO:HQVVRUH WKURDWV4XLQVLHV,PSRVWKXPHVDQG5KHXPHVLQWKHWKURDWRUQHFN F 

  8QFHUWDLQ3UREDEO\/LQGDX%D YDULDVRXWK*HUPDQ\RQDQLVODQGLQ/DNH &RQVWDQFH*HU %RGHQVHH  /LQGDXZDVDQLPSHULDOFLW\IURPWRDQG SDVVHGWR%DYDULDLQ   &LW\LQORZHU6D[RQ\FHQWUDO*HUPDQ\RQWKH2NHU5LYHU   &UDFRZ3RODQG   0DUVHLOOHV)UDQFH   6DUDJR VVDFLW\FDSLWDORI=DUDJR]DSURYDQGOHDGLQJFLW\RI$UDJy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



$VPRGHO





:KLWHPL[HGZLWK&LWURQ





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

  0XFXVGLVFKDUJH   $QJHO  &RORXUV   3ODFHV  5HJLRQV   $QFLHQWFRXQWU\RIZHVW$VLDZKRVHDFWXDOERXQGDULHVFDQQRWEHGHILQHG RFFXS\LQJJHQHUDOO\ZKDWLVQRZZHVWHUQ,UDQDQGVRXWKHUQ$]HUEDLMDQ,W H[WHQGHGIURPWKH&DVSLDQ6HDWRWKH=DJURV0WV7KH0HGHVZHUHDQ,QGR  (XURSHDQSHRSOHZKRVSRNHDQ,UDQLDQODQJXD JHFORVHO\DNLQWRROG3HUVLDQ   $QFLHQWFRXQWU\RI$VLDVRXWKHDVWRIWKH&DVSLDQ6HD,QLWVQDUURZHVWOLPLWVLW FRQVLVWHGRIDPRXQWDLQRXVUHJLRQLQWHUVHFWHGZLWKIHUWLOHYDOOH\VO\LQJVRXWKRI +\UFDQLDDQGFRUUHVSRQGLQJURXJKO\WRWKHPRGHUQ,UDQLDQ SURYLQFHRI.KRUDVDQ   %\HODUXVIRUPHUO\%HORUXVVLDRIILFLDOO\5HSXEOLFRI%HODUXV(DVWHUQFHQWUDO (XURSH,WLVVRPHWLPHVFDOOHG:KLWH5XVVLD%HODUXVERUGHUVRQ3RODQGLQWKHZHVW RQ/LWKXDQLDDQG/DWYLDLQWKHQRUWKRQ5XVVLDLQWKHHDVWDQGRQ 8NUDLQHLQWKH VRXWK0LQVNLVWKHFDSLWDODQGODUJHVWFLW\   5HJLRQRIFHQWUDO(XURSHRFFXS\LQJWKHSODWHDXEHWZHHQWKH$OSVDQGWKH-XUD PRXQWDLQV6ZLW]HUODQG   *ULVRQFDQWRQODUJHVWDQGPR VWHDVWHUQFDQWRQLQ6ZLW]HUODQGFRPSULVLQJWKH KLJKODQGVRIWKH5KLQHDQG,QQ9DOOH\V,WERUGHUVRQ/HLFKHQVWHLQ$XVWULD,WDO\ DQGWKH6W*DOOHQDQG*ODUXVFDQWRQV   8QFHUWDLQ3UREDEO\)UDQNIXUW*HUPDQ\WKHQDQLPSHULDOFLW\   &LWLHV  0DQWRYD FLW\FDSLWDORI0DQWRYDSURYLQFH/RPEDUG\QRUWK,WDO\ERUGHUHGRQ WKUHHVLGHVE\ODNHVIRUPHGE\WKH0LQFLR5LYHU   %RORJQD,WDO\   &DSLWDORI3DUPDSURYLQFHLQ(PLOLD5RPDJQDQRUWK,WDO\RQWKH3DUPD5LYHU DQGRQWKH$HPLOLDQ:D\   )UHQFKYLOOD JHLQWKHSURYLQFHRIERXFKHVGXUK{QH   7DUDQWR,WDO\   3DOHUPR,WDO\FDSLWDORI3DOHUPRSURYLQFHDQGRI6LFLO\QRUWKZHVW6LFLO\,WDO\ RQWKH7\UUKHQLDQ6HD   2QWKHVKRUHRIWKHODNH6LQRHLQWKHQRUWKHUQSDUWRI,VWULDSHQLQVXODLQ 5RPDQLD   %UHVFLDLVORFDWHGLQWKH3DGDQD3ODLQYHU\FORVHWRWKH$OSVDQGDWWKHHQGRI 9DO 7URPSLD6ZLW]HUODQG   

/XFHUQH 9DQFHLXP 0HWLV +HUELSROLV &DURODVWDGLXP /LHSVLD 1DQWHV3RVXD*XHVPD1RYRJDUGL   7KHQHFNDQGWKURDW  

2I*HPLQL

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

  =XULFK6ZLW]HUODQG   &DQWRQRIFHQWUDO6ZLW]HUODQG   9HQFH)UDQFH   0HW])UDQFV   :XUW]EXUJ*HUPDQ\   &KDUOHYLOOH$UGHQQHV)UDQFHRU& KDUOHYLOOH0p]Lq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



/RQGRQ0HQW]&RUGXED%UXJHV+DVIRUG&HVHQD 1RUULQEHUJ/RYDLQ%DPEHUJ F   7KH$UPVKDQGVDQGVKRXOGHUV  



2I&DQFHU

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

  7KHUHJLRQDQGIRUPHUNLQJGRPRI$VLD0LQRUWKDWZDV*UHDWHU$UPHQLDOD\ HDVWRIWKH(XSKUDWHV5LYHU/LWWOHRU/HVVHU$UPHQLDZDVZHVWRIWKHULY HU $UPHQLDLVJHQHUDOO\XQGHUVWRRGWRKDYHLQFOXGHGQRUWKHDVWHUQ7XUNH\WKHDUHD FRYHUHGE\WKHPRGHUQUHSXEOLFRI$UPHQLD   /RPEDUGLDUHJLRQQRUWKHUQ,WDO\ERUGHULQJRQ6ZLW]HUODQGLQWKHQRUWK0LODQ LVWKHFDSLWDORIWKHUHJLRQZKLFKLVGLYLGHG LQWRWKHSURYLQFHVRI%HUJDPR%UHVFLD &RPR&UHPRQD0DQWXD0LODQ3DYLD6RQGULRDQG9DUHVH   &LWLHV  &RUGRYDFLW\FDSLWDORI&yUGREDSURYLQFHVRXWKHUQ6SDLQLQ$QGDOXVLDRQWKH *XDGDOTXLYLU5LYHU   %UXJHVEURR]K)UEU]KRU%UXJJHEUXJHFL W\FDSLWDORI:HVW)ODQGHUV SURYLQFH1RUWKZHVW%HOJLXPFRQQHFWHGE\FDQDOZLWK=HHEUXJJHRQWKH1RUWK 6HD LWVRXWHUSRUW   +DVVIXUWQRZ+DVVEHUJHRQWKHQRUWKEDQNRIWKH0DLQEHWZHHQWKH 6WHLJHUZDOGDQGWKH+DVVEHUJH*HUPDQ\   &LW\LQ(PLOLD5 RPDJQDQRUWKHUQFHQWUDO,WDO\RQWKH6iYLR5LYHU   1XUHPEHUJ*HUPDQ\   /HXYHQ/RXYDLQ LQ)UHQFK /|ZHQLQ*HUPDQ LVDPXQLFLSDOLW\ORFDWHGLQWKH %HOJLDQSURYLQFHRI)OHPLVK%UDEDQWRIZKLFKLWLVWKHFDSLWDO   &LW\%DYDULD6*HUPDQ\DSRUWRQ WKH5HJQLW]5LYHU   ,QPDQ  7KHTXDOLW\DQGSURSHUW\RI E  'HVFULSWLRQVLJQLILHGE\ E  'LVHDVHV  &RQVXPSWLYHV   6WRPDFKXOFHUV   6ZHOOLQJVUHODWHGWRGURSV\   $QJHO  

*UHHQRUUXVVHW





7KH6HDJUHDWDQGODUJH5LYHUVSODFHVQHDU5LYHUVPDUVK\ JURXQGV3RQGV/DNHV:HOOV6SULQJV%URRN'LWFKHVDQG6HDEDQNVDOO ZDWHU\SODFHV7UHQFKHV&LVWHUQ:DVKKRXVHVDQG&HOODUV   6FRWODQG +ROODQG =HDODQG &RQVWDQWLQRSOH


2I/HR

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



9HUFKLHO





5HGRU*UHHQ





$OO 3ODFHV ZKHUH ZLOG EHDVWV IUHTXHQW DV :RRGV 'HVHUWV )HQV )RUHVWV5RFN\SODFHVDQGKDUGVWRQ\RUJUDYHOO\ZD\V&DVWOHV)RUWV3DUNV .LQJV3DODFHVDOOVXFKSODFHVZKHUHILUHLVRUKDVEHHQNHSWDV&KLPQH\V 6WRYHV)XUQDFHV2YHQVDQGWKHOLNH   ,WDO\ WKH $OSV 6LFLO\ %RKHPLD 3KRHQLFLD &KDOGHD (PLOLD SDUWRI7XUNH\6DELQD7RJDWD2ULFKHPLD   'DPDVFXV 5RPH 5DYHQQD &UHPRQD &RQIOXHQWLD 3UDJXH /LQ]LQXV&UHPLVLXP&URWRQDQG%ULVWRO 

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



7KHKHDUWEDFNVLGHVDQGULEV





2I9LUJR

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

 -HUXVDOHP &RULQWK 1RYDULD 5KRGHV $UHWKLXP &XPDV %UXQGXVLXP 3DGXD 7RORVD /XJGXQXP 3DULV %DVLO &UDWLVODYLD +HLGHOEHUJ6LJLQD(USKRUGLD   7KH%HOO\DQG(QWUDLOV  

2I/LEUD

/LEUDLVDQDLU\VDQJXLQHKRWDQGPRLVWHTXLQRFWLDOFDUGLQDOPRYHDEOH PDVFXOLQHZHVWHUQGLXUQDODQGKXPDQHVLJQDQGRIWKHDLU\WULSOLFLW\   2QH RI D WDOO VWUDLJKW ZHOO IUDPHG ERG\ XVXDOO\ PRUH VOHQGHU WKHQ JURVV HVSHFLDOO\ LQ \RXWK RI D URXQG ORYHO\ DQG EHDXWLIXO YLVDJH D ILQHVDQJXLQHFRPSOH[LRQLQ\RXWKEXWLQDJHFRPPRQO\SLPSOHVRUDYHU\ KLJKFRORXULQWKHIDFHWKHKDLU\HOORZLVKRUVRPHZKDWWHQGLQJWRIOD[HQ EXWLWORQJDQGVPRRWKDQGJUH\H\HV 

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³ SDUWLFXODUO\WKH.UNRQRåH*HU5LHVHQJHELUJH ³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UWWHPEHUJVRWKZHVW*HUPDQ\SLFWXUHVTXHO\VLWXDWHGRQWKH 1HFNDU5LYHU   6LHJHQ*HUPDQ\   (UGIXUWLQ7ULQJHQ*HUPDQ\   ,QPDQ  7KHTXDOLW\DQGSURSHUW\RI ;  'HVFULSWLRQVLJQLILHGE\ ;  



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qJHSURYLQFHHDVW%HOJLXP   *DHWD,WDO\%HWZHHQ5RPHDQG1DSOHV   /RGL,WDO\   &LW\LQ&DPSDQLD,WDO\   

  

7KHUHLQVNLGQH\VDQGEODGGHU



2I6FRUSLR

6FRUSLRLVDZDWHU\FROGSKOHJPDWLFIHPLQLQHQRFWXUQDOIL[HGQRUWKHUQ VLJQRIWKHZDWHU\7ULJRQ   $ VWURQJ DEOH FRUSXOHQW ERG\ QRW H[FHHGLQJ LQ KHLJKW D JRRG EURDGYLVDJHEXWWKHFRPSOH[LRQVRPHZKDWREVFXUHDVDGEURZQKDLUDQG LW FULVSLQJ RU FXUOLQJ DQ KDLU\ ERG\ VKRUW QHFNHG DQG D VWURQJ VHW ERG\ HYHU\ZD\EXWFRPPRQO\ERZOHJJHG   $OO LQILUPLWLHV LQ WKH 3ULYLWLHV DQG %ODGGHU DV WKH JUDYHO VWRQH SULDSLVPUXSWXUHV)LVWXODVWKH3LOHV'HIHFWVLQWKH0DWUL[DQGUXQQLQJ RIWKHUHLQVRU*RQRUUKRHD   %DUDOXHO   %URZQ   $OO VXFK SODFHV DV FUHHSLQJ DQG YHQRPRXV EHDVWV XVH *DUGHQV 2UFKDUGV 9LQH\DUGV PXGG\ PRRULVK JURXQGV VWLQNLQJ /DNHV DQG 4XDJPLUHV DQG VLQNV LQ KRXVHV UXLQRXV KRXVHV DQG VXFK SODFHV ZKHUH UXEELVKXVHVWROLHWKHZDVKKRXVHV.LWFKHQRU/DUGHU   0DWUDJRWLWLGD &RPPDJHQD &DSSDGRFLD -XGLR 0XPPD 0DXULWDQLD *HWXOLD &DWDORQLD 1RUZD\ WKH :HVWHUQ 6ZHFLD DQG WKH XSSHU%DYDULDWKHNLQJGRPRI)H] 

  &DSLWDORI3LDF HQ]DSURYLQFHLQ(PLOLD5RPDJQDRQWKH3R5LYHU   (LWKHU)ULERXUJ6ZLW]HUODQGRU)UHLEXUJLP%UHLVJDX*HUPDQ\   )HOGNLUFKLQ9RUDOEHUJH[WUHPH:$XVWULDQHDUWKH5KLQH5LYHUDQGWKH6ZLVV DQG/LHFKWHQVWHLQERUGHUV   6SH\HU*HUPDQ\   )UDQIXUW*H UPDQ\   8QFHUWDLQ3UREDEO\=HLOHU%DYDULD   8QFHUWDLQ3UREDEO\+HLOEURQQ%DGHQ:UWWHPEHUJVRXWK*HUPDQ\DSRUWRQ WKH1HFNDU5LYHU   0RVEDFK*HUPDQ\   /DQGVKXW%DYDULD   ,QPDQ  7KHTXDOLW\DQGSURSHUW\RI &  'HVFULSWLRQVLJQLILHGE\ &  'LVHDVHV  :RPE   $QJHO  &RORXUV  3ODFHV  5HJLRQV  8QNQRZQ   



$OJHUD9DOHQFLDRI6SDLQ7UDSL]XQWLXV9RELQXQV$TXLOHLD 3LVWRULD&DPHULQXP3HWDYLXP0HVVDQD9LHQQDRIWKH$OOREURJHV *HGDPXQ&UHPD$ULPLQXP)RUXP-XOLL   7KHSULY\SDUWVRUPHPEHUVRIJHQHUDWLRQ  



2I6DJLWWDULXV

6DJLWWDULXV LV D ILHU\ KRW GU\ PDVFXOLQH FKROHULF GLXUQDO (DVWHUQ FRPPRQ%LFRUSRUDOVLJQRIWKHILHU\7ULJRQ   ,W UHSUHVHQWV RQH RI D ZHOO FRPSRVHG VWURQJ ERG\ VRPHZKDW DERYHWKHPLGGOHVL]HDKDQGVRPHFRPHO\FRXQWHQDQFHVRPHZKDWORQJLVK YLVDJHDUXGG\VDQJXLQHFRPSOH[LRQDFKHVWQXWFRORXUHGKDLU   $OOLQILUPLWLHVLQWKHWKLJKVDQGEXWWRFNVDV5XSWXUHVDQG)LVWXODV LQ WKRVH SDUWV DOVR RYHUKHDWLQJ RI WKH EORRG 3HVWLOHQWLDO )HYHUV LQWHPSHUDWHQHVVLQUHFUHDWLRQVIDOOVIURPKRUVHV F 

  7KH.LQJGRPRI&RPPDJHQHZDVWKHPRVWQRUWKHUQGLVWULFWRI6\ULDWRWKH ZHVWRIWKH(XSKUDWHVLQZKDWLVQRZVRXWKHUQ7XUNH\   &HQWUDO$QDWROLD7XUNH\   -XGHD  8QFHUWDLQ3RVVLEO\ 0XPEDL%RPED\ ,QGLDNQRZQORFDOO\DV0XPEDGXULQJ WKLVSHULRG   1RUWKHUQ$IULFDERUGHULQJWKH1RUWK$WODQWLF2FHDQEHWZHHQ6HQHJDODQG :HVWHUQ6DKDUD   *RWKLDQRZ/LE\D   6ZHGHQ   0RURFFR   &LWLHV  $OJLHUV   7UDE]RQFDSLWDORI7UDE]RQSURY LQFHQRUWKHDVW7XUNH\DSRUWRQWKH%ODFN6HD   8QNQRZQ   7KHFLW\RI$TXLOHLDZDVDPDMRU5RPDQPHWURSROLVDWWKHKHDGRIWKH$GULDWLF 6HDKDOI ZD\EHWZHHQSUHVHQW GD\9HQLFHDQG7ULHVWH   3LVWRLDLVDFLW\LQWKH7XVFDQ\UHJLRQRI,WDO\WKHFDSLW DORIDSURYLQFHRIWKH VDPHQDPH   &DPEHULQRDFLW\DQG(SLVFRSDOVHHRIWKH0DUFKHV,WDO\LQWKHSURYLQFHRI 0DFHUDWD   3DGXD,WDO\   &DSLWDORI0HVVLQDSURYLQFHLQWKHH[WUHPHQRUWKHDVWHUQ6LFLO\,WDO\   6DYR\)UDQFH   'DQ]LJ*HUPDQ\   /RPEDUG\,WDO\   5LPLQL,WDO\   )UpMXV9DU)UDQFH   ,QPDQ  7KHTXDOLW\DQGSURSHUW\RI 9  'HVFULSWLRQVLJQLILHGE\ 9  'LVHDVHV  

 

$GYDFKLHO










$ 6WDEOH RI :DUKRUVHV 2[KRXVHV WKH KLJKHVW SODFHV LQ /DQG +LOOV6WRQ\SODFHVDQGSODFHVZKHUHILUHLVRUKDVEHHQIUHTXHQWO\NHSWWKH XSSHUURRPVLQKRXVHV   $UDELD)HOL[7\UUKHQLD&HOWLFD+\VSDQLD'DOPDWLD  6ODYRQLD +XQJDU\0RUDYLD0LVQLD3URYLQFH/\JXULDZKHUH*HQRDLV /XQHVDQD   7ROHWXP9RODWHUUD0XWLQD1DUERQD$YLQLQLRQ &RORQLD$JULSSLQD6WXWJDUGLD5RWHPEXUJXV7XEHULQXP ,QGHPEXUJXV%XGD$VWXP)LUPXP   7KHWKLJKVDQGEXWWRFNV 

  $QJHO  &RORXUV   3ODFHV  5HJLRQV   
 

2I&DSULFRUQ

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

  ,QPDQ  7KHTXDOLW\DQGSURSHUW\RI &1RWH$OWKRXJKWKLVLVZKDWDSSHDUVLQWH[WLWLV FOHDUO\DSULQWHU·VHUURUDQGVKRXOGUHDG %  'HVFULSWLRQVLJQLILHGE\ &1RWH$OWKRXJKWKLVLVZKDWDSSHDUVLQWH[WLWLVFOHDUO\ DSULQWHU·VHUURUDQGVKRXOGUHDG %  'LVHDVHV  $QJHO  &RORXUV   3ODFHV  5HJLRQV   /DWHO\DJRYHUQRUDWHLQ7XQLVLDQHDU7XQLV3RVVLEO\7XQLVLD   3ROLVKSURYLQFH   /LWKXDQLD   3HORSRQQHVXV *UHHFH  2UNQH\,VODQGVRIIWKHFRDVWRI6FRWODQG   $QLQIRUPDOSURYLQFHLQWKHQRUWKRI6ORYHQLD   5DYHQQD,WDO\   5HJLRQDQGIRUPHUSURYLQFHFHQWUDO)UDQFHRQWKHQRUWKZHVWPDUJLQRIWKH 0DVVLI&HQWUDO   +HVVHQ*HUPDQ\   7KXULQJLDLQ*HUPDQ\ZLWKLWVFDSLWDO(UIXUWLVORFDWHGLQWKHPLGGOHRIWKH IRUPHU(DVW*HUPDQ\   

-XOLDFXP &KHYRQLD %HUJD 0HFOLQLD *DXGDQXP 9LOQD 2[IRUGLQ(QJODQG%UDQGHQEXUJ$QJXVWD&RQVWDQWLD'HUUKRQD )DYHQWLD7RUWRQD3UDWXP  7KHNQHHV  





2I$TXDULXV

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

  &LWLHV  -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

RI 6ZHFLD :HVWSKDOLD 0RVVHODQL 3HGHPRQWLXP SDUW RI %DYDULD &URDWLD*HUPDQ\0XVFRYLD  +DPEXUJ %UHYD 0RQVIHUDWXV 3LVD LQ ,WDO\ 6DOLVEXUJXV ,QJROVWDGLXV)RUXP6HPSURQLXP7UHQW   7KHOHJVDQGDQNOHV  

2I3LVFHV

3LVFHVLVDZDWHU\FROGPRLVWIHPLQLQHSKOHJPDWLFQRFWXUQDOFRPPRQ %LFRUSRUDO 1RUWKHUQ HIIHPLQDWH LGOH VLFNO\ IUXLWIXO VLJQ DQG RI WKH ZDWHU\7ULJRQ   2QH RI D VKRUW VWDWXUHQRWYHU\GHFHQW\HW,KDYHNQRZQWKRVH WKDW KDYH KDG 3LVFHV DVFHQGLQJ LQ WKHLU 1DWLYLWLHV RI D WDOO VWDWXUH DQG VRPHZKDWKDQGVRPHO\VKDSHGEXWLWKDVEHHQZKHQWKHUHZDVD3ODQHWLQ WKH DVFHQGDQW RI WKDW SRZHU DQG VLJQLILFDWLRQ 3LVFHV FRPPRQO\ JLYHV D JRRGODUJHIDFHDQGDSDOLVKFRPSOH[LRQWKHERG\IOHVK\ F 



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eSLQDODQG0H W] /HDYLQJ)UDQFHLWIRUPVSDUWRIWKHERUGHUEHWZHHQ/X[HPERXUJDQG*HUPDQ\ WKHQHQWHUV*HUPDQ\SDVVHV7ULHUDQGFXWVEHWZHHQWKH(LIHODQGWKH+XQVUFN UDQJHVWRUHDFKWKH5KLQH5LYHUDW.REOHQ]   3LHGPRQW,WDO\   0RVFRZ   &LWLHV  $WWKHFHQWU HRIWKH5KDHWLDQ$OSV/LYLJQRYDOOH\,WDO\   0RQWHIHUUDWRRULJLQDOO\D 0DUTXLVDWH1RZQ RUWKZHVWRI3UDWRDORQJWKH ERUGHURI0RQWHPXUORYROFDQLFPRXQWDLQVNQRZQE\WKHQDPHRI0RQWHIHUUDWR IURPZKLFKWKHJUHHQPDUEOHVHUSHQWLQH FRPHV   6DO]EXUJ  ,QJROVWDGW ORFDWHGDORQJWKHEDQNVRIWKH'DQXEH5LYHULQ%DYDULD*HUPDQ\   6RSURQ+XQJDU\   ,QPDQ  7KHTXDOLW\DQGSURSHUW\RI 0  'HVFULSWLRQVLJQLILHGE\ 0  

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´ERRWµ   )URP*DXODQFLHQWWHUULWRU\RIFHQWUDO$VLD0LQRULQSUHVHQW7XUNH\DURXQG PRGHUQ$QNDUD     5RPDQSURYLQFHLQWKH,EHULDQ3HQLQVXOD$VFRQVWLWXWHGFLUFD&( E\ $XJXVWXVLWL QFOXGHGDOORIPRGHUQFHQWUDO3RUWXJDODVZHOODVPXFKRIZHVWHUQ 6SDLQ  &LWLHV  6HYLOOH6SDLQ   6DQWLDJRFLW\&RUXxDSURYLQFHQRUWKZHVW6SDLQLQ*DOLFLDRQWKH6DU5LYHU 6SDLQ  3RUHF&URDWLD   5RXHQ)UDQFH    8QNQRZQ3RVVLEO\1RUPDQG\"   8QFHUWDLQ3RVVLEO\5DWLVERQRU5HJHQVEHUJ*HUPDQ\   *HUPDQ\·VROGHVWWRZQRQWKH5KLQH   ,QPDQ





 7KXVPXFKRIWKHQDWXUHTXDOLWLHVDQGVLJQLILFDWLRQVRIWKHVLJQVZH FRPHQRZWKH$VSHFWVRIWKH3ODQHWVDQGWRVD\VRPHZKDWRIWKHPDQGVR SURFHHG  



 &+$3;;9,,2IWKH$VSHFWVRIWKH3ODQHWVDQG6LJQVWKHLU1DPHV &KDUDFWHUVDQG1DWXUHVDQGZKHUHIRUHWKH\ZHUHVRQDPHGDQG FKDUDFWHUHG

0DQ\QHZ$VSHFWVWKHUHDUHZKLFKZHVKDOOKHUHRPLWDQGKHUHWUHDWRQO\ RI WKRVH $VSHFWV RI WKH 3ODQHWV DQG VLJQV ZKLFK DUH PRVW XVXDO DQG QHFHVVDU\$QGWKH\DUHWKXVFDOOHGDQGFKDUDFWHUHG6H[WLOHU4XDUWLOHW 7ULQH X  DQG 2SSRVLWLRQ S  :H RPLW KHUH WR VSHDN RI .HSOHU·V QHZ $VSHFWVVLQFHWKHVHDUHWKHPRVWQHFHVVDU\LQWKHSUDFWLVHRIWKLVVWXG\ 7KHUH LV DOVR D &RQMXQFWLRQ WKXV &KDUDFWHUHG T ZKLFK LV QRW SURSHUO\ WHUPHG DQ $VSHFW VLQFH D 3ODQHW LV WKHQ VDLG WR EH LQ &RQMXQFWLRQ ZLWK DQRWKHUZKHQKHLVLQWKHVHOIVDPHGHJUHHDQGPLQXWHRIRQHDQGWKHVDPH VLJQ WKH RWKHU LV LQDQGWKHUHIRUHFDQQRWSURSHUO\EHVDLGWREHKROGRU $VSHFWKLPEXWLVLQTZLWKKLPWKLVTLVRIQDWXUHQHLWKHUJRRGQRUEDG EXWDFFRUGLQJWRWKHVLJQLILFDWRUVDQGWKHLUGLVSRVLWLRQVDQGSODFHVLVERWK YL]VRPHWLPHVJRRGDQGVRPHWLPHVEDG   $6H[WLOHLVVRFDOOHGIRUWKDWLWLVWKHVL[WKSDUWRIWKH=RGLDFDQG LVWKHUHIRUHFKDUDFWHUHGLQWKLVPDQQHUUZLWKVL[VWURNHVLWFRQVLVWVRI GHJLQOHQJWKDVD3ODQHWLQWKHILUVWGHJUHHRI$ULHVEHKROGVDQRWKHULQWKH ILUVWGHJUHHRI*HPLQLZLWKDU$VSHFW$OVRLID3ODQHWEHLQWKHILUVWGHJUHH RI$ULHVKHEHKROGVDQRWKHULQWKHILIWKGHJUHHRI*HPLQLZLWKDUDQGWKLV LV FDOOHGD3ODWLF$VSHFWDGPLWWLQJRIWKH2UEVRIWKH3ODQHWVLQ$VSHFWDV 6DWXUQLQWKHGHJUHHRI$ULHVDQG-XSLWHULQWKHGHJRI*HPLQL-XSLWHU LVLQDURI6DWXUQE\UHDVRQKHLVQRWIXOO\HORQJDWHGGHJZKLFKWKHKDOI RUERI6DWXUQDQG-XSLWHUPDNHVDV6DWXUQVKDOIRUEEHLQJGHJDQGDKDOI DQG-XSLWHUVGDQGDKDOIDGGHGWRJHWKHUPDNHMXVWQLQHGHJDQGKHUH \RXVHHWKHPEXWGHJVHSDUDWHGIURPD3DUWLOHDVSHFWZKLFKLVZKHQWKH\ DUHERWKLQRQHDQGWKHVDPHQXPEHURIGHJUHHVDQGPLQXWHVDVDERYHVDLG 7KHXVHWKHUHRILVRQO\WKXVLILQDQ\VFKHPHRUMXGJHPHQWZKDWVRHYHU\RX ILQGWKH6LJQLILFDWRUVLQD6H[WLOH3ODWLF\RXPD\EHFRQILGHQWLI\RXUOLJKW RU3ODQHWEHDSSO\LQJ \RXUEXVLQHVVVLJQLILHGE\WKRVH6LJQLILFDWRUVVKDOOEH DFFRPSOLVKHG ZKHQ WKH\ FRPH WR WKH3DUWLO DVSHFW HVSHFLDOO\ LI WKH PRUH   0DWKHPDWLFLDQDQGDVWURQRPHU-RKDQQHV.HSOHUERUQLQ6ZDELD+H GLVFRYHUHGWKHVXEWOHJHRPHWULFUHODWLRQVKLSEHWZHHQWKHSODQHWDU\RUELWVDQG WKHLU GLVWDQFHVIURPWKH6XQDQGIRUPXODWHGWKH/DZVRISODQHWDU\0RWLRQ.HSOHU LQWURGXFHGQHZDVSHFWVLQWRDVWURORJ\EDVHGXSRQKLVKDUPRQLFWKHRU\7KHVH DVSHFWVLQFOXGHWKHVHPLV[WLOHGHJUHHV TXLQWLOH WUHGHFLOH ELTXLQWLOH  DQGTXLQFXQ[    2IDT  ,QQDWXUH   2IDU  2ID3DUWLODVSHFW 





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ρ RU ω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





IRU DV WKH 6XQ LV )RQV YLWDH WKH IRXQWDLQ RI OLIH VR LV WKH0RRQ RI PDLQ SRZHUDQGHIILFDF\E\KHUIRUFLEOHLQIOXHQFHRQLQIHULRUERGLHVEULQJLQJWKH OLJKWDQGLQIOXHQFHRIDOOWKHRWKHU3ODQHWVWRXV,VD\LQUHVSHFWRIWKHPDUH WKHDVSHFWVWHUPHGJRRGRUHYLOIRU6DWXUQVKRXVHVEHKROGWKHKRXVHVRIWKH /XPLQDULHV ZLWK DQS ZKLFK LV WKH ZRUVW RI $VSHFWV E\ UHDVRQ KH LV WKH ZRUVWRI3ODQHWV,QOLNHPDQQHUDRDVSHFWLVWKHPRVWIRUWXQDWHDQGEHVWIRU WKDWWKHKRXVHVRIWKHEHVWDQGPRVWWHPSHUDWH3ODQHW-XSLWHUEHKROGVWKH KRXVHVRIWKH/XPLQDULHVZLWKD7ULQHDVSHFWHYHQDV&DSULFRUQLVRSSRVLWH WR&DQFHUDQG$TXDULXVWR/HRVRLV3LVFHVLQ7ULQHWR&DQFHUDQG6DJLWWDULXVWR /HRDQGVRLVD4XDUWLOHWKHOHVVHUPDOHYROHQWDVSHFWIRUWKDWWKHKRXVHVRI WKH OHVVHU IRUWXQH YL]0DUV EHKROG WKH KRXVHV RI WKH /XPLQDULHV ZLWK D 4XDUWLOHYL]$ULHVLVLQ4XDUWLOHWR&DQFHUDQG6FRUSLRWR/HRQHLWKHULVWKLV DVSHFWVREDGDVLVDQ2SSRVLWLRQIRUWKDW6FRUSLRRQHRIKLVKRXVHVLVLQ7ULQH WR&DQFHUWKHKRXVHRI/XQD/LNHZLVHD6H[WLOHEHLQJIURPWKHKRXVHVRIWKH OHVVHU )RUWXQH9HQXVLVRIOHVVIRUFHWKHQD7ULQH FDQGVRPXFKIRUWKH DVSHFWVRIWKH3ODQHWVDQG6LJQV  

&+$3;;9,,,2IWKHIL[HG6WDUVLQWKH=RGLDFZKHUHIRUHWKH\DUH FDOOHGIL[HGWKHLUQXPEHUSDUWLFXODUQDPHVQDWXUHVPDJQLWXGHV ODWLWXGHVDQGORQJLWXGHVDQGILUVWRIWKRVHLQ$ULHVDVWKH\DUH GHOLYHUHGE\WKHPRVWOHDUQHGLQWKLV$UW

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

 

,Q[ $OJHQLEWKHHQGRIWKHULJKW ZLQJRI3HJDVXV  $OGHUDLPLP WKHULJKWVKRXOGHU RI &HSKXV  7KHIRUPRVW RIWKHEULJKWVWDUV LQWKHEDQGRIWKHILVKHV   $OSKHUDR] WKH1DYHORI3HJDVXV WKHKHDG RI$QGURPHGD   7KHKLQGHUPRVWLQWKHWDLO RIWKH :KDOH  7KHPLGGOHPRVW RIWKHEULJKW VWDUVLQWKH EDQGRIWKHILVKHV   7KHPLGGOHPRVWRIWKHLQWKH ERG\RIWKH :KDOH  7KHODVWRIWKHEULJKWVWDUVLQ WKHEDQGRIWKH ILVKHV  %DWHQ.DLWRQ WKHEHOO\RIWKH :KDOH  2I$QGURPHGD WKHOHIWVKRXOGHU EODGH6KHGHU 



/DWLWXGH

  K M

 J

 

6

M





' [  

I











6

6

3 J



6



3

I

6 6

3

I

'0 %

/RQJLWXGH

1DWXUH 

0DJQLWXGH

7KHLU1R

  7KH1DPHVRIWKH6WDUV

0



%





0





6



J



 

%



  

  -RKDQQHV6FKRHQHU 7KHPDLQDVWURORJHUUHVSRQVLEOHIRUSURSDJDWLQJ WKHZULWLQJVRI5HJLRPRQWDQXV&RPSLOHGDQDQQXDOHSKHPHULVDQGZURWHWKH 2SXVFXOXP$VWURORJLFXP DQG7KUHH%RRNVRQW KH-XGJPHQWRI1DWLYLWLHV 







J

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







6

3

I



0



6

3

I







J







I







J



%



J









0



J



%



6



0





%



6



0



6







M 6

3

M

I

6

K

6

K



%



6

J







 &+$3;;,;2IWKH)L[HGVWDUVLQ7DXUXVWKHLUQXPEHUQDPHV QDWXUHPDJQLWXGHODWLWXGHDQGORQJLWXGH





   



 

,QF 7KHIRUHPRVWLQWKH-RZORIWKH :KDOH 6FKHGDUWKHEUHDVWRI&DVVLRSHD 7KHSRLQWRIWKH7ULDQJOH 7KH3HUXFNRIWKH:KDOH 7KHILUVWEULJKWVWDUDIWHUWKH VSDFHRIWKH5LYHU

1DWXUH 6 6



6 6 6

J

  /DWLWXGH

 

'0 0

   

%  0 

/RQJLWXGH

 

  7KH1DPHVRIWKH6WDUV

0DJQLWXGH

7KHLU1R

8QWR WKH IL[HG VWDUV LQ 7DXUXV ZH QRZ GHVFHQG DV WKH\ VXFFHHG RQH DQRWKHULQORQJLWXGHZKLFKDUHLQQXPEHUWKLUW\ILYHDVIROORZV 

2     

                         

  



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`RISHUVRQV ZLQJRI $OFKHQLEDVWDU LQWKHULJKWVLGH 7KHDQNOHRIWKH OHIWIRRWRI $OFKHQLEDVWDU LQWKHULJKWVLGH 7KHDQNOHRIWKH OHIWIRRWRI 7KHWKLUGVWDURI WKHULJKWVLGH

6







K I

 

 %

 







I



%



J







6



0



6







 

% 0

 

J



%



6



0



K

REV

%



J







J

3O 

0



J

3O 





6

6



6

J

J



%



6



0



VOR Z 

%







 

 

 

   

  0 %

   







J











6

M

6

M

K 

K

 G YH  O G   G

6

M

M



J

 



7KHVKDQNRI WKHOHIWOHJRI







 





&+$3;;;2IWKH)L[HG6WDUVLQ*HPLQLWKHLU1XPEHU1DPHV 1DWXUH0DJQLWXGH/DWLWXGHDQG/RQJLWXGH

'HVFHQGZHQH[WXQWRWKHPRVWQRWDEOHIL[HGVWDUVLQ*HPLQLZKLFKDUHLQ QXPEHUWKLUW\VL[ZHZLOOKHUHVWLOOIROORZWKHVDPHPHWKRGWRVHWWKHP GRZQDVWKH\IROORZRUVXFFHHGHDFKRWKHULQORQJLWXGH  

  

,QY 7KHOHIWNQHHRI 3HUVHXV 2I+\DGHV/DPSDGHV RU6XFXOP 7KH1RVWULOVRIWKH %XOO  RI+\DGHV/DPSDGHV RU6XFXOD 8QGHUWKH1RUWKH\HRIWKH %XOO  RI+\DGHV/DPSDGHV RU6XFXOD 8QGHUWKH6RXWKH\HRIWKH %XOO  2I+\DGHV/DPSDGHV RU6XFXOP,Q WKH1RUWKH\HRIWKH %XOO

 2I+\DGHV/DPSDGHV RU6XFXODLQ WKH6RXWKH\HRIWKH %XOO  7KH6L[WKRIWKHVKLHOGRI 2ULRQ   7KH6HYHQWKRIWKHVKLHOGRI ` 2ULRQ  7KH(LJKWKRIWKHVKLHOGRI 2ULRQ  7KH/DVWDQG6RXWKHUQPRVWRI WKHVKLHOGRI 2ULRQ  7KH6WDUEHWZHHQWKH6RXWKKRUQ DQGWKHHDURIWKH %XOO

 $OJHQ]H$OJHEDU5LJHO RUWKHOHIW  IRRWRI2ULRQ  (OJHX]H%HOODWUL[ RUWKHOHIW VKRXOGHURI 2ULRQ  7KHPRVW6RXWKHUO\VWDULQWKH 6RXWKKRUQRIWKH %XOO  7KHIRUHPRVWRIWKHHOERZRI $XULJD  7KHKLQGHUPRVWRIWKHHOERZRI $XULJD  7KHVWDULQWKHEHOO\RIWKH +DUH  7KHILUVWVWDURIWKHJLUGOHRI 2ULRQ  7KHVWDULQWKHPLGGOHRIWKH ERG\RIWKH +DUH

 +LUFXVWKHJRDWRUWKHOHIW VKRXOGHURI $XULJD  7KHULJKWIRRWRI $XULJDWKHHQG RIWKHQRUKRPRIWKH %XOO  7KHEHJLQQLQJRUURRWRIWKH VRXWKKRUQRIWKH %XOO  7KHIRUHPRVWRIWKHEULJKWVWDUV E\WKHIRUPRIWKH'RJ 





1DWXUH  6



  /

'0  0

 

K

/





K

/





K











 

 

K

 M

  /DWLWXGH

/RQJLWXGH

  7KH1DPHVRIWKH6WDUV

0DJQLWXGH

7KHLU1R





K

 

6

M

6

M

 

 

I















K

3



M K

I

J

 

6

3

I







6

3

I

J

%



I

J





6

 

0   





6 M

I I

K

I



%

 

K

3

I

J





K

3

I



0







J



7KHPLGGOHPRVWRIWKHVZRUGRI ` 2ULRQ`

 

7KH6RXWKHUQPRVWRIWKHVZRUG RI2ULRQ  7KHHQGRIWKH6RXWKKRUQRIWKH %XOO  7KHPLGGOHPRVWVWDURIWKHJLUGOH RI2ULRQ  7KHVHFRQGEULJKWVWDUE\WKH IRUPRIWKH'RJ  7KHODVWRIWKHJLUGOHRI2ULRQ  7KH3ROHVWDU$OUXFDEDWKHWDLORI &\QRVXUD  7KH5LJKWNQHHRI2ULRQ

 7KH5LJKWVKRXOGHURI2ULRQ  7KHULJKWVKRXOGHURI$XULJD  7KHIRUHPRVWRYHUWKHIRRWRI &DVWRUZLWKRXWIRUP  %ULJKWRQHEHIRUHWKHNQHHRI &DVWRUZLWKRXWIRUP  7KHIRUHPRVWRIWKHOHIWIRRWRI &DVWRU

M

6













I







M













M J

 

 %

 

6

M

K

I

   

0  % 220

   

I

J

J

%





0



` K

3

6 J 6 6 ` ` ` `

3



 &+$3;;;,2IWKHIL[HG6WDUVLQ&DQFHUWKHLU1XPEHU1DPHV 1DWXUH0DJQLWXGH/DWLWXGHDQG/RQJLWXGH 



(QWHU ZH QRZ RQ WKH IRXUWK VLJQ RI WKH =RGLDFWR WUHDW RI WKH IL[HG 6WDUV WKHUHLQZKLFKDUHLQQXPEHUMXVW7KLUW\DVIROORZV 

   

      



,QE 7KHKLQGHUPRVWRIWKHOHIWIRRW RI&DVWRU 7KHDQNOHRIWKHULJKWIRRWRI &DVWRU 7KHVWDUDWWKHHQGRIWKHOHIW IRUHIRRWRIWKH'RJ 7KHULJKWLQVWHSRI3ROOX[RU +HUFXOHV 7KHOHIWNQHHRI&DVWRU $UJRV &DQLVPDMRURUWKHPRXWKRIWKH JUHDW'RJ 7KHOHIWNQHHRI3ROOX[ 7KHOHIWDUPRI&DVWRU 7KHULJKWKDPRI3XOOX[ 7KHOHIWEXWWRFNRI3ROOX[ 7KHULJKWVKRXOGHUEODGHRI &DVWRU

  1DWXUH `

 I

`

I 6 M ` ` ` ` 



 3

 J



  /DWLWXG H

/RQJLWXGH

 

  7KH1DPHVRIWKH6WDUV

0DJQLWXGH

7KHLU1R



'0 







4   

J







J







M K

  

% 0 

  

    

0 % 0  %

    

S 6 3 6

6



7KHOHIWVLGHRI3ROOX[ 7KHKHDGRI&DVWRURU5DV $OJHXVH  7KHULJKWWKLJKRIWKHJUHDW'RJ  7KHULJKWVKRXOGHURI&DVWRU  7KHVWDUEHWZHHQWKHWKLJKVRI WKHJUHDW'RJ  7KHOHIWVKRXOGHURI3ROOX[  7KHKHDGRI+HUFXOHVRU3ROOX[

 3URFURQ&DQLVPLQRU$OJRPHLVD WKHOLWWOH'RJ  7KHEULJKWVWDUEHVLGHVWKHIRUP RIWKH7ZLQ  7KHHQGRIWKHWDLORIWKHJUHDW 'RJ  7KHKLQGHUPRVWQRUWKOHJRIWKH &UDE  7KHPRVWVRXWKHUO\VWDURIWKH ULJKWIRRWEHIRUHRI+HOLFH  7KHVWDULQWKHOHIWNQHHEHIRUH RI+HOLFH  7KHEXFNOHURIWKHVKLSRU 0DUNHE  7KHPRVWQRUWKHUO\VWDULQWKH ULJKWIRUHIRRWRI+HOLFH  7KHKLQGHUPRVWVRXWKOHJRIWKH &UDE  7KHQRUWKHUQPRVWRIWKH IRUHSDUWRIWKHRIWKH&UDE  7KHVRXWKHUQPRVWRIWKH IRUHSDUWRIWKHRIWKH&UDE  



I

I

J

 

 

 

6 J 6

  

0 % 0

K γ 3

  

%  0

  

6



0



J









%22

















0





%



K

J

0



G



%





0



3

 `

K

K

K 6

M K

I

3

K

` `

  



 &+$3;;;,,2IWKHIL[HG6WDUVLQ/HRWKHLU1XPEHU1DPHV1DWXUH 0DJQLWXGH/DWLWXGHDQG/RQJLWXGH



7KH IL[HG 6WDUV LQ/HRDUH LQ RUGHU QH[W WR EH WUHDWHG RQ DQG WKH\ DUH LQ QXPEHU7KLUW\RQHDVIROORZV

  



  1DWXUH

,Q5 7KHFUDWFKRUEUHDVWRIWKH&UDE 7KH1RUWKHUQPRVWRIWKHWZR $VVHV 7KHILUVWRIWKHREVFXUHVWDUVE\ WKHIRUPRI+HOLFH 7KHVRXWKHUQPRVWRIWKHWZR $VVHV 7KHVHFRQGRIWKHREVFXUHVWDUV E\+HOLFH

 G V

 FO 

REV    J 0 

 

 K K



J

G



K

V



J

G





  /DWLWXG H

/RQJLWXGH

  

  The Names of the Stars

0DJQLWXGH

7KHLU1R



,Q5 % 

REV % 

 



                    

  



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



6

J



0 



6

M









J

G

%



 

6 G

J J

0 %

 



6

J

REV   REV  







6

K



0





%

  0 

6 6

K M

 



6

K

/ 





%















J







I M

 

  0 

K

 `

6

K

`

 7KHUXPSRI+HOLFHRUVHFRQG ZKHHORIWKH:DJRQ  7KHVRXWKHUQPRVWLQWKHEUHDVW RIWKH/LRQ  7KHOHIWWKLJKRIWKH*UHDW%HDU RUZKHHORIWKH:DJRQ



 



6

 

J 6

 

6 6

J J

 

 %

 



J

I









6

I









M

K









6 J

3

I



0





%



6 J

3



0





%



  





K





3

3

K

K

I



&+$3;;;,,,2IWKHIL[HG6WDUVLQ9LUJRWKHLU1XPEHU1DPHV 1DWXUH0DJQLWXGH/DWLWXGHDQG/RQJLWXGH



+HDUG\RXKDYHDOUHDG\WKH1DWXUHRIWKH6WDUVLQ/HRLWUHVWVWKHUHIRUHZH LQ RUGHU QRZ VSHDN DOVR RI WKH VWDUV LQ9LUJR VXFFHHGLQJ DQG WKH\ DUH LQ QXPEHU7ZHQW\VL[DVIROORZV

                     



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

  /DWLWXGH 

  1DWXUH  6 `  `

M

 6J 3 I

K 6

J

6J 3 `

` `

 `



 

0

  

0  %

  









0



%







0







%





K I



/

6

  3 M

J

I



6

J

/

6

3 M



K

J

3 I

/RQJLWXGH 

 

  7KH1DPHVRIWKH6WDUV 

0DJQLWXGH 

7KHLU1R 







6 



0





%

















0



6J 3 I J G 6 3 M

 % REV   0

J

3 I K

 

J

G

REV

  

 %

 









I

 7KHSLQLRQRIWKHOHIWVRXWKZLQJ RI9LUJR  7KHKRUVHLQWKHZDLQWKHODVW LQWKHWDLORI+HOLFH  7KHIRUHPRVWRIWKHIRXULQWKH OHIWZLQJRI9LUJR

I

P K P

K 

















J

 &+$3;;;,92IWKHIL[HG6WDUVLQ/LEUDWKHLU1DPHV1XPEHU 1DWXUH0DJQLWXGH/RQJLWXGHDQG/DWLWXGH



5HPHPEHU /LEUD IROORZV 9LUJR ZH KDYH GRQH ZLWK WKH 6WDUV LQ9LUJR ZKHUHIRUHZHDUHWRFRPHQRZWRWKH&RQVWHOODWLRQVLQ /LEUDDQGWRVSHDN LQRUGHURIWKHPDVRIWKHUHVWDIRUHJRLQJDQGWKH\DUHLQQXPEHU 7ZHQW\ ILYHDVIROORZV

          



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

  1DWXUH  `





6I

RU J

I

3

6K

`

 



7 







J







  I  RU



0

















%



6

K

6K

RU I



0



I

3

J



%



K







J













6 `



  /DWLWXGH

/RQJLWXGH

 

  7KH1DPHVRIWKH6WDUV

0DJQLWXGH

7KHLU1R



I

`

3 



            



J 6SLFDYLUJLQV$ULVWDH $]LPHFKWKHHDURIFRUQ LQWKHOHIWKDQGRI5 M $UFWXUXV$OUDPHFKLQWKH FRQVWHOODWLRQRI%RRWHV 7KHVRXWKHUQPRVWRIWKH ` IRUHVLGHRIWKHρLQWKH I WKLJKRIWKH9LUJLQ 7KHVRXWKHUPRVWRIWKH ODWWHUVLGHRIWKHρLQWKH WKLJKRIWKH9LUJLQ 7KHODWWHURIWKHWZR QRUWKHUQPRVWRIWKHρLQ WKHWKLJKRIWKH9LUJLQ 7KHOHIWNQHHRIWKH 9LUJLQ M 7KHIRUHPRVWRIWKHWZR MRLQHGVWDUVLQWKHULJKW WKLJKRI&HQWDXUXV 6 7KHFDOIRIWKHULJKWOHJ RI%RRWHV 6 7KH6SHDUVWDII,QFDOXUXV RI%RRWHV M 7KHODWWHURIWKHWKUHHLQ WKHORLQVRI&HQWDXUXV J 7KHVWDULQWKHOHIW VKRXOGHURIWKHKXPDQ VKDSHRI&HQWDXUXV 7KHPLGGOHPRVWVWDULQ ` I WKHKHPRIWKHYHVWXUH 2IWKH9LUJLQ 7KHVRXWKHUQPRVWVWDU  LQWKHKHPRIWKH YHVWXUH2IWKH9LUJLQ

K



0



K



%



























J



0



I



%



M







J



0



I







RU

J



%



3

K







3

3 RU J K

 &+$3;;;92IWKHIL[HG6WDUVLQ6FRUSLRWKHLU1XPEHU1DPHV 1DWXUHV0DJQLWXGH/DWLWXGHDQG/RQJLWXGH



 $QG WKXV ZH DUH FRPH WR WKH IL[HG 6WDUV LQ 6FRUSLRZKLFK DUH LQ 1XPEHU 7KLUW\ILYHDVIROORZVVLQFHZHDUHQRZLQRUGHUWRVSHDNRIWKHPDQGWKHQ OHWXVSURFHHGWRWKHUHVW





  1DWXUH

,Q&   IJ RU 7KH6WDUXQGHUWKHKHHORIWKHOHIW IRRWRIWKHYLUJLQ 3 7KHKDPRIWKHULJKWKLQGHUOHJ ` M RIWKH&HQWDXU 

 K J

  

  /DWLWXG H

/RQJLWXGH

 

  7KH1DPHVRIWKH6WDUV

0DJQLWXGH

7KHLU1R

 

'0 8  ,,  0 

     

                   



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





`

I

J %



M

J



0



J

I







M

J







JI RU K







6

J %





















3

6



`

K

 M

I







JI RU

K



%









K



%



J



0





%

































I







K





















0



6

  S

M

`

K

3

`

 `

K

6

6

 3

K

I M 6

3 I

6 `



J

` `



K

J   3

6

2IWKHEULJKWVWDUVLQWKH IRUHKHDGRIWKH6FRUSLRQ7KH VRXWKHUQPRVW  7KHKLQGHUPRVWVWDULQWKHSDOP RIWKHOHIWKDQGRI*SLXFXV  $VWDULQWKHVRXWKDUPRUIRUHOHJ RIWKH6FRUS  7KHQRUWKHUQPRVWRIWKHEULJKW RQHVLQWKHIRUHKHDGRIWKH6FRUS  7KHQRUWKHUQPRVWRIWKH FRQMRLQHGVWDUVRIWKHERG\RIWKH 6FRUS  7KHVRXWKHUQPRVWRIWKH FRQMRLQHGVWDUVRIWKHERG\RIWKH 6FRUS

 7KHKRRIRIWKHULJKWIRUHIRRWRI &HQWDXUXV 



6









%





0



6



%



I















0



J

3 6

K

S

I

M

J



 &+$3;;;9,2IWKHIL[HG6WDUVLQ6DJLWWDULXVWKHLU1XPEHU1DPHV 1DWXUH0DJQLWXGH/DWLWXGHDQG/RQJLWXGH



0\ LQWHQWLRQV QRZ DUH WR WUHDW RIWKH6WDUVLQWKHVLJQ 6DJLWWDULXVWKDWZH PD\VD\VRPHZKDWRIWKH6WDUVWKHUHLQDVZHKDYHDOUHDG\RIWKHSUHFHGLQJ VLJQVDQGNQRZWKH\DUHLQQXPEHU 7KLUW\DVIROORZV

       



,Q9 $6WDULQWKHKROORZRIWKH OHIWIRRWRI2SKLXFKXV 7KHIRUHPRIWKHEULJKW VWDUVLQWKHPLGGOHRIWKH 6FRUSLRQ 7KHOHIW.QHHRI2SKLXFKXV &RU6FRUSLL$ODWUDE&DO $QWDUHVWKHKHDUWRIWKH 6FRUSLRQ 7KH(\HRI-XQRQLXVRUWKH 'UDJRQ 7KHKLQGRIWKHEULJKW VWDUVLQWKHPLGGOHRIWKH 6FRUSLRQ 7KHOHIWVKRXOGHURI+HUFXOHV RU(QJRQDVLQ 5DV$OJHWLWKHKHDGRI +HUFXOHVRU(QJRQDVLQ 7KHILUVWMRLQWQH[WWKHERG\ RIWKH6FRUSLRQ

  1DWXUH  6

  3 J

 

%

9 

K

3 M



0



6 K

3 3

J M

 J

% 0

 

M



%



M



0





%











0



6 K

3 I

I  `



  /DWLWXGH

/RQJLWXGH

 

  7KH1DPHVRIWKH6WDUV

0DJQLWXGH

7KHLU1R



6

K  3

J

         



         



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

J

6

` 6

3

J

 ` 6

`

`

3

J

K

G

I

K



  J

 % 

  







J

%



J











J







0



























J

6K 3

M



%



6

J



0



3

K

6G REV





K

G









%





0









 ` M





 3

6





K



&+$3;;9,,2IWKHIL[HG6WDUVLQ&DSULFRUQWKHLU1XPEHU1DPHV 1DWXUH0DJQLWXGH/DWLWXGHDQG/RQJLWXGH

 (QWHU ZH LQ WKH QH[W SODFH RQ WKH IL[HG 6WDUV LQ&DSULFRUQ ZKLFK DUH EXW WZHQW\IRXUDVIROORZV

 

,Q% 7KH6RXWKHPLQWKHQRUWKSDUW RIWKHERZRIWKH $UFKHURU 6DJLWWDULXV  7KH$UURZRUVKDIWRIWKH $UFKHURU6DJLWWDULXV  'RXEOHFORXG\VWDURIWKH(\H RIWKH$UFKHURU6DJLWWDULXV  7KHOHIWVKRXOGHURIWKH $UFKHU RU6DJLWWDULXV  7KHIRUHPRVWRIWKHWKUHHLQWKH +HDGRI6DJLWWDULXV  7KHVWDUXQGHUWKH$UPSLWRI 6DJLWWDULXV  7KHOHIW.QHHRIWKH)RUH OHJRI 6DJLWWDULXV

 :HJD)LGLFXOD7KHVKLQLQJ +DUSWKHIDOOLQJ YXOWXUH  7KHOHIW+RRIEHIRUHRI 6DJLWWDULXV  7KHPLGGOHVWDURIWKHWKLUGLQ WKHKHDGRI 6DJLWWDULXV  7KHODWWHULQWKHKHDGRI  6DJLWWDULXV  7KHILUVWVWDURI $QWLQRXVE\WKH (DJOH  2I6DJLWWDULXVWKHPLGGOHPRVW ,QWKHQRUWKHUQPRVWWUDLO EHKLQGWKHKHDG   2I6DJLWWDULXVWKHQRUWKHUQ,Q WKHQRUWKHUQPRVWWUDLOEHKLQG  WKHKHDG   2I6DJLWWDULXVWKH5LJKWKRRI EHKLQG  2I6DJLWWDULXVWKH/HIWWKLJKRI WKHKLQGHUOHJ   7KHIRUHPRVWRIWKHWZRLQWKH EDFNRIWKH (DJOH

 $ONDLU7KH(DJOHRUIO\LQJ 9XOWXUHWKHODWWHURIWKHP   $OELUWRWKHPRXWKRIWKH 6ZDQ RUELOORIWKH +HQ  7KHQH[WWRWKHEULJKWVWDULQ WKHEDFNRIWKHVKRXOGHURIWKH (DJOH



  /DWLWXGH 

  1DWXUH  M }

V



 K K

`

` `

` 







9   

M

K



0



V

K



%



M

6



0







%



0



J

%





}

 ` 



REV %

}

}



/RQJLWXGH 

  7KH1DPHVRIWKH6WDUV 

0DJQLWXGH 

7KHLU1R



J

I

6

M

 



V

K





K

M







J













P











%











/ 



M

I

6

M

K

M

J

I

K

M

J 



7KHIRUHPRVWLQWKH1HFNRIWKH (DJOH  2IWKH*RDWWKH1RUWKHUQPRVW ` VWDULQWKHOHIWKRUQ  2IWKH*RDWWKH6RXWKHUQPRVW VWDULQWKHOHIWKRUQ  7KHRIWKHEULJKWVWDUV ZLWKRXWIRUPEHIRUHWKH6RXWK ILVK

J

K

3 6



















3

0

29





 &+$3;;;9,,2IWKHIL[HG6WDUVLQ$TXDULXVWKHLU1XPEHU1DPHV 1DWXUH0DJQLWXGH/DWLWXGHDQG/RQJLWXGH



62PXFKRIWKH6WDUVLQ&DSULFRUQFRPHZHQRZWRWKRVHLQ$TXDULXVZKLFK DUHEULHIO\DVIROORZVDQGLQQXPEHU 7KLUW\QLQH



,Q1 1 The head of Antiaous, the foremost southward from the head of the Eagle. 2 The foremost of the 3 stars in the Jaw of the Goat. 3 The middlemost of the 3 stars in the Jaw of the Goat. 4 The last & southernmost of the 3 stars in the Jaw of the Goat. 5 The star betw. the head & shaft of the arrow of Hercules. 6 The right knee of the Goat. 7 The middlemost of the bright stars, without form, before the south or great fish called Notius. 8 The next after of the bright stars, without form, before the south or great fish called Nolius. 9 The foremost of the 3 in the garment on the left hand of Aquarius. 10 Of the said three stars, on the back Side of the same hand. 11 The southern. of the 3 in the mid. of the body of the goat. 12 The northern. of the 3 in the mid. of the body of the goat. 13 The foremost star on the back of the goat. 14 In the tail of the Dolphin.

  1DWXUH 

 K

 `

6

  3

K



J

J

K

  `

 M

I



  /DWLWXGH

/RQJLWXGH



  7KH1DPHVRIWKH6WDUV

0DJQLWXGH

7KHLU1R

 

3

21 B 40

− 0.18

6

1 45

0.18

6

1 30

0.38

6

00 45

0.38

4

39 20

1

4 3

6 M30 22 10

2 2

3

21 20

5

3

8 B 30

6

3

5 30

8

5

4 M 00

8

5

2 50

8

4

00 00

8

29 B 10

9

6

`

6

 `

K

I

I

3.L







15 In the southernmost star of the fore side of the Rhomboydes or square of the Dolphin. 16 The brightest of the 3. in the middle of the body of the goat. 17 The Pinion of the right wing of the swan or Hen. 18 The northemm. of the foreside of Rhomboydes of the Dolph. 19 The foremost of the conjoined stars under the belly of the Goat. 20 The hindermost of the conjoined stars under the belly of the Goat. 21 The hindermost of the two on the back of the goat. 22 The southern. of the latter side of the long diamond square or Rhomboydes of the Dolphin. 23 The northern. of the latter side of the long diamond square or Rhomboydes of the Dolphin. 24 The foremost Denek Alchedi in the flank or doubling of the tail of the Goat. 25 The foremost Denek Alchedi on the bowing of the back or doubling of the tail of the Goat. 26 The hinderm. in the flank or doubling of the tail of the Goat. 27 The hinderm. on the bowing of the back or doubling of the tail of the Goat. 28 Of the lesser horse foremost in the head 29 Of the lesser horse foremost in the mouth. 30 The left shoulder of Aquarius. 31 The foremost star after the doubling of the tail of the goat. 32 Of the lesser horse, the hindermost in the Mouth. 33 Of the lesser horse, the hindermost in the Head. 34 The breast of the Swan or Hen. 35 The southernmost star in the left buttock of Aquarius. 36 Enif Alpheracz, the yawning of Pegasus. d' 37 The forem. of the 2 in the right side of the pitcher of Aquarius. 38 The brighter star in the right shoulder of Aquarius. '39 The mouth of the south fish, and end of the water of Aquarius.

`

6



K

K

I

J



I

6



   `

K

K

 ` 

I

6

K

  ` 6

`   `

M

K

M

6 6

I M

K J I

 

KM



I



6



J



M I 6

3

32 00

10

5

4 M 15

10

3

64 B 40

10

3.L

33 50

11

4

6 M50

11

5

6 00

11

4

00 50

12

3.L

32 B 00

12

3.L

33 10

14

4

4 M45

14

3

2 10

16

4

4 30

16

3

2 00

17

obs. 20 B 30

17

obs. 25 30

17

3 4

8 50 2 M 20

18 18

obs. 25 00

19

obs. 20 40

19

3 6

56 20 l M40

20 23

9 I

3g

21 B 30

26

3

4

3 BOO

27

3

11 00

27

1

23 M 00

28

3

6 I I





 &+$3;;;,;2IWKH)L[HGVWDUVLQ3LVFHVWKHLUQDWXUHQXPEHU QDPHVPDJQLWXGHODWLWXGHDQGORQJLWXGH



(YHQDVZHKDYHSURFHHGHGLQWKHRWKHUVLJQVOHWXVKHUHFRQFOXGHZLWK Pisces ZKLFKLVWKHODVWWKHQXPEHUWKHQRIWKHVWDUVWKHUHLQDUHtwenty nine, DVIROORZV

              



,Q0 7KHVWDULQWKHULJKWEXWWRFN RI$TXDULXV $ULGHG'HQHE$GLJHJHWKHWDLO RIWKH6ZDQRU+HQ 7KH1RUWKHUPRVWRIWKHWZR LQWKHKHDGRI 3HJDVXV 7KHULJKWDUPRI $TXDULXV 7KH1RUWKHUQPRVWVWDULQWKH ULJKWKDQGRI $TXDULXV 7KHILUVWVWDURIWKH,WUHDP QH[WWKH3LWFKHURI $TXDULXV 7KH1RUWKHUQPRVWLQWKH ULJKWOHJRI $TXDULXV 7KH6RXWKHUQPRVWL QWKH ULJKWOHJRI $TXDULXV 7KH)RUHPRVWRIWKH VRXWKHUQPRVWVWDUVLQWKH ULJKWKDQGRI $TXDULXV 7KH+LQGHUPRVWRIWKH VRXWKHUQPRVWVWDUVLQWKH ULJKWKDQGRI $TXDULXV 2I$TXDULXV7KHQH[W 6RXWKHUQPRVWRIWKH3LWFKHU RIWKHVWUHDP  2I$TXDULXVWKH6WDULQWKH IRUHSDUWRIWKHERZLQJRIWKH VWUHDP  2I$TXDULXVWKH 1RUWKHUQPRVWLQWKHERZLQJ RIWKHVWUHDP  2I$TXDULXVWKH 6RXWKHUQPRVWLQWKHERZLQJ RIWKHVWUHDP  2I$TXDULXVWKH1H[WDIWHU WKHIRUHPRVWLQWKHERZLQJ RIWKHVWUHDP  2I$TXDULXVWKH 6RXWKHUQPRVWQH[WDIWHUWKH ERZLQJRIWKHVWUHDP 

  1DWXUH 

 J



J



KM

 

6 6



6



I

 S

 6

 



= 

%









I I

 

 

3

M





3

6



0











 `



0

















,0



























I 9 I

I

6

    ` 6



3

M



  /DWLWXGH 

/RQJLWXGH 

 ,

  7KH1DPHVRIWKH6WDUV 

0DJQLWXGH 

7KHLU1R



  

 7KH6RXWKHUQPRVWLQWKH QHFNRIWKHIRUHPRVWRIWKH )LVKHV  7KH)RUHPRVWRIWKHEHOO\RI WKHIRUHPRVWRIWKH)LVKHV  0DUNDE$OSKDUDF]7KHSLQLRQ RI3HJDVXVKLVZLQJ  7KHODWWHULQWKHEHOO\RIWKH IRUHPRVWRIWKH)LVKHV  7KHODWWHURQWKHEDFNRIWKH IRUHPRVWRIWKH)LVKHV  )RUHPRVWRQWKH6RXWKVLGH RIWKHVTXDUHZLWKRXWIRUP  )RUHPRVWRQWKH1RUWKVLGH RIWKHVTXDUHZLWKRXWIRUP  6FKHDW$OSDUDL]7KHULJKW VKRXOGHURI3HJDVXV  7KHKLQGHUPRVWRQ6RXWK VLGHRIWKH6TXDUHEHVLGHVRU XQGHUWKHIRUPRIWKH)LVKHV  7KHKLQGHUPRVWRQ1RUWK VLGHRIWKH6TXDUHEHVLGHVRU XQGHUWKHIRUPRIWKH)LVKHV  2IWKH:KDOHWKHVWDUDWWKH 1RUWKHQGRIWKHWDLO  2IWKH:KDOHWKHVWDUDWWKH 6RXWKHQGRIWKHWDLO  7KHWDLORIWKHIRUHPRVWRI WKHWZR)LVKHV 



I



M



KM

 `

3

6

J





I



%



/





























/







0























%



9 I

I

M

 `

M

3

J



KM

Y

I

M

  3

 ` 

J

6

 ` 6



3

I



&+$3;/6KRZLQJWKHXVHRIDOOWKHIRUPHU7DEOHV 



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



&+$3;,,2IWKHVLJQLILFDWLRQVRIWKH+RXVHVRI+HDYHQDQG ZKHUHIRUHWKH\KDYHVXFKVLJQLILFDWLRQ 

(QGHDYRXUWREHSHUIHFWLQWKLVFKDSWHUZKLFKLVWRGHPRQVWUDWHWKHUHDVRQV RIVRPHWKLQJVZKLFKKDYHQRWDV\HWEHHQGLYXOJHGLQRXUYXOJDUWRQJXHWR WKH 6WXGHQWV RI WKLV QREOH $UW DQG \RX ZLOW PXFK DGYDQWDJH \RXU VHOI LW EHLQJ P\ GHVLUH QRW WR OHW RXJKW VOLS IRU ZKLFK \RX PD\ QRW LI QHHG UHTXLUH JLYHVXIILFLHQWJURXQGDQGUHDVRQV F 




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

  2IWKHILIWKKRXVH   2IWKHQLQWKKRXVH 1RWH&OHDUO\DPLVSULQW   2IWKHVHYHQWKKRXVH   2IWKHHLJKWKKRXVH 





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
  2IWKHQLQWKKRXVH   2IWKHWHQWKKRXVH   2IWKHHOHYHQWKKRX VH  2IWKHWZHOIWKKRXVH   1RWHWKLVZHOO 





RIWKHVLJQLILFDWLRQRIHYHU\KRXVHFRQGXFHWRWKHSHUIHFWLRQRIWKH6WXGHQW LQ WKLV $UW , WKLQN JRRG KHUH QRWZLWKVWDQGLQJ LQ WKH VW FKDSWHU RI WKLV ILUVW7UHDWLVH\RXKDYHKHDUGDOUHDG\VRPHZKDWDVWRXFKLQJWKHGLYLVLRQVRI WKH+HDYHQV WRJLYH\RXWKHGLYLVLRQWKHUHRIPRUHSODLQO\LQWKLVIROORZLQJ FKDSWHU    

&+$3;/,,2IWKHGLYLVLRQRIWKH+RXVHVLQWRWZHOYHHTXDOSDUWV

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




 7KH$QJOHVDUHWKHPRVWSRZHUIXOKRXVHVIRUD3ODQHWWKHUHLQKDV PRUH SRZHU DQG HIILFDF\ WKHQ DQRWKHU LQ DQ\ RWKHU KRXVH  WKDW LV EXW HTXDOO\GLJQLILHGEXWNQRZWKDWWKHKRXVHVDUHLQVWUHQJWKDVIROORZV\HW 3WROHP\SUHIHUVWKHPLGKHDYHQ F    6RWKDWWKHPHDQLQJWKHUHRILVQRPRUHEXWWKXV$3ODQHWLQWKHVW DQGDQRWKHULQWKHWKHTXDOO\GLJQLILHGWKDWKDVPRUHSRZHUZKLFKLVLQ WKH$VFHQGDQWDQGOLNHZLVHWKDWLQWKHWKSUHFHGHVWKDWLQWKHWKDQGVR NQRZRIWKHUHVW$QGVRPXFKRIWKHGLYLVLRQVRIWKHWZHOYHKRXVHV  



 &+$3;0,,&RQWDLQLQJVRPH7HUPVRI$UWYHU\QHFHVVDU\WREH NQRZQDVDOVR,QVWUXFWLRQVKRZWRHUHFWD)LJXUHRI+HDYHQ

$PRQJVWWKH3ODQHWVKHUHDUHVHYHUDOWKLQJVWREHNQRZQRIDOOWKDWVWXG\ WKLV6FLHQFHDQGWKH\DUHLQQXPEHUZKLFKDUHPRVWPDWHULDOWKHUHIRUH, ZRXOGKDYH\RXGLOLJHQWO\REVHUYHWKLV&KDSWHU  'LUHFWLRQ5HWURJUDGDWLRQ6WDWLRQDU\$SSOLFDWLRQ6HSDUDWLRQ3URKLELWLRQ 5HIUHQDWLRQ 7UDQVODWLRQ 5HFHSWLRQ )UXVWUDWLRQ 3HUHJULQDWLRQ &RPEXVWLRQ &D]LPL XQGHU WKH 6XQ EHDPV YRLG RI &RXUVH EHVLHJLQJ 2ULHQWDO 6XSHULRU ,QIHULRU$WKD]HU$OPXWHQDQG+D\]   $3ODQHWLVVDLGWREHGLUHFWZKHQKHPRYHVLQKLV1DWXUDOPRWLRQ GLUHFWO\IRUZDUGDV6DWXUQLQWKHILUVWGHJUHHRI$ULHVJRHVLQWRWKHDQG VRIRUZDUGWKLVLVGLUHFWLRQ   5HWURJUDGDWLRQRUD3ODQHWLVVDLGWREH5HWURJUDGHZKHQKHJRHV EDFNZDUG RU FRQWUDU\ WR WKH VXFFHVVLRQ RI WKH VLJQV DV6DWXUQ LQ WKH ILUVW GHJUHH RI $ULHV JRLQJ LQWR WKH   DQG  GHJUHHV RI3LVFHV F LV 5HWURJUDGHRUJRHVEDFNZDUG   6WDWLRQDU\ LV ZKHQ D 3ODQHW VWDQGV VWLOO RU PRYHV QHLWKHU EDFNZDUGQRUIRUZDUGDVWKH6XSHULRUVGRVRPHWLPHVIRXUGD\VWRJHWKHU FDV\RXKDYHKHDUGEHIRUHDQGWKLVKDSSHQVERWKEHIRUHGLUHFWLRQDQG UHWURJUDGDWLRQ   $SSOLFDWLRQLVZKHQWZR3ODQHWVLWPDWWHUVQRWZKLFK GUDZQHDU WKHUD\VRUERGLHVRIHDFKRWKHUE\&RQMXQFWLRQRU$VSHFWDQGWKLVPD\EH GRQHWKUHHZD\V\HW\RXDUHWRNQRZWKDWDPRUHZHLJKW\3ODQHWRUWKDW ZKLFKLVVXSHULRUFDQQRWDSSO\XQWRWKHOLJKWHURULQIHULRUH[FHSWZKHQKH LVUHWURJUDGH   'LUHFWLRQ   5HWURJUDGDWLRQ   6WDWLRQDU\   $SSOLFDWLRQ 





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

  7UDQVODWLRQ   5HFHSWLRQ   )UXVWUDWLRQ   3HUHJULQDWLRQ   &RPEXVWLRQ   8QGHUWKH6XQEHDPV   &D]LPL 





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

  9RLGRI&RXUVH   %HVLHJLQJ   2ULHQWDO   2FFLGHQWDO   6XSHULRU   ,QIHULRU  $WKD]HU  $OPXWHQ   +D\]  +RZWRHUHFWD)LJXUHRI+HDYHQ 





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





$1,1752'8&7,2172(/(&7,216  %22.



 )XOO\FRPSUHKHQGLQJ 7KH5XOHVRIWKH$QFLHQWV LQ (OHFWLQJD7LPHIRUDQ\PDQQHURI:RUN  1HYHUEHIRUHPDGHSXEOLFLQRXU 0RWKHU7RQJXH %XWQRZE\WKH%OHVVLQJRI*2' IRU WKHEHQHILWRIDOOWUXH/RYHUVRI NQRZOHGJHVHQWDEURDG

%\:,//,$05$0(6(<*HQW 6WXGHQWLQ$VWURORJ\3K\VLFDQGWKHPRVW+HDYHQO\DQG6XEOLPH6FLHQFHV

(FFOHV 7RHYHU\WKLQJWKHUHLVDVHDVRQDQGDWLPHWRHYHU\SXUSRVHXQGHUWKH+HDYHQ 6DSLHQV'RPLQDELWXUDVWULV

 

/21'21 3ULQWHGIRU5:

  (FFOHVLDVWHV





   



+2125$7,66,02 $748( ,//8675,66,02'20,12 '20,12 +(15,&23(55(32,17 0$5&+,21,'('25&+(67(5 &20,7,'(.,1*6721 $38'+8// 352&20,7,1(:$5.Å (7 '20,123(55(32,17 '( +2/0(63(55(32,17 

 

  



6DOXWHP3DFHP )HOLFLWDWHP3HUSHWXDP '20,12682&/(0(17,66,02 +$1&68$0 ,1(/(&7,21,%86 ,1752'8&7,21(0  68%0,66('(',&$7

:LOKHOPXV5DPHVHXV



 



727+(5,*+7+21285$%/(  +HQU\3HUUHSRLQW 0DUTXLVRI'25&+(67(5 (DUORI.LQJVWRQHXSRQ+XOO 9LVFRXQW1HZDUNDQG/RUG3HUUHSRLQW RI+ROPHV3HUUHSRLQW +HDOWKDQGOLIHKHUHDQG(WHUQDOKDSSLQHVVKHUHDIWHU

  0\/RUG   :KHQRU&RQWHPSODWRUV@RI1DWXUHDQGLWVP\VWHULHVDQGVHFUHWVWKLVIRUWKH JHQHUDOLW\




SOHDVHG WR JUDQW LW ZLOO EH D SHUSHWXDO URFN XQWR LW DQG DQ LQH[SUHVVLEOH IDPHXQWRKLUHZKRVHKHLJKWRIDPELWLRQLVWREH  0\/25' 




 

7RWKH5HDGHU

5($'(5 




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
  $PDJQHWLWHZKLFKLVXVXDOO\PDJQHWLF 







/,%(5,,, '( -8',&,,6$6752580 ,1 (/(&7,21,%86 25$1 ,QWURGXFWLRQWR(OHFWLRQV )XOO\FRPSUHKHQGLQJWKH58/(6RIWKH $QFLHQWVLQ(OHFWLQJDWLPHIRUDQ\ PDQQHURI:RUN 

 6(&7,21,&RPSUHKHQGLQJDQ,QWURGXFWLRQWR(OHFWLRQVRU QHFHVVDU\,QVWUXFWLRQVIRUHOHFWLQJDQ\PDQQHURIZRUNE\WKH VHFUHWRSHUDWLRQVRIWKH+HDYHQVE\WKHQDWXUHRIWKH6LJQV3ODQHWV DQG$VSHFWVRIWKH0RRQ F 





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



&+$3,&RQWDLQLQJVRPHQHFHVVDU\,QVWUXFWLRQVWRWKHMXGJLQJRI (OHFWLRQV

,QDOO$XWKRUVWKDWHYHU,\HWPHWZLWK,ILQGWKHUHFDQEHQRWLPHHOHFWHG LQ WKLV RXU $VWURORJLFDO ZD\ RI HOHFWLQJ  DGYDQWDJHRXV WR DQ\ RQH ZKRVH QDWLYLW\ RU WLPH RI ELUWK LV QRW H[DFWO\ NQRZQ IRU DFFRUGLQJ XQWR LW PXVW \RXIUDPH\RXUHOHFWLRQWRJHWKHUZLWKUHVSHFWWRWKHUHYROXWLRQRIWKH\HDU DQG=DKHO%RQDWXV0HVVDKDOODDQG'DULRWVD\WKDWLQFDVHWKHQDWLYLW\ 

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·DKD$OODKPHDQLQJ





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

0DOHYROHQWV /HW QRW WKH /RUG RI \RXU $VFHQGDQW E\ DQ\ PHDQV EH UHWURJUDGH IRU LW ZLOO RFFDVLRQ WDUGLW\ DQG KLQGUDQFH LQ DQ\ WKLQJ DOWKRXJK DOO WKH RWKHU VLJQLILFDWRUV ZHUH HVVHQWLDOO\ VWURQJ DQG SURPLVLQJ WKH HIIHFWLQJ RI WKH EXVLQHVVLWFDXVHVDOVRPXFKWURXEOHDQGSDLQVLQWKH EXVLQHVVDOWKRXJKQDWXUDOO\QHYHUVRHDV\WREHDFFRPSOLVKHG   ,QWKHEHJLQQLQJRIDQ\ZRUNDOVRVHHWKDWWKH'UDJRQVWDLOEHQRW ZLWKHLWKHURIWKH/XPLQDULHVZKHQWKH\DUHLQFRQMXQFWLRQRURSSRVLWLRQ RULQWKH$VFHQGDQWRUKRXVHVLJQLI\LQJWKHEXVLQHVVLQKDQGEXWSODFHLQ WKRVH SODFHV VRPH IRUWXQDWH 3ODQHW RU LQ WKH KRXVH RI WKH EXVLQHVV LQ (OHFWLRQ RU LQWKH$QJOHVRIWKH)LJXUHDWWKHWLPHRI(OHFWLRQ%XWKDYHD VSHFLDOFDUHLQDOO(OHFWLRQV\RXSXWQRWWKH0RRQLQWKH$VFHQGDQWIRUVKH LV DQ HQHP\ WKHUHXQWR VR DOVR LV WKH 6XQ IRU KH WKHUHLQ GLVVROYHV DQG XQGRHVZKDWLVDFFRPSOLVKHGDQGGRQH$QGOHWQRWDQ,QIRUWXQHEHSODFHG LQWKH$VFHQGDQWQRULQDQ\RIWKH$QJOHVHVSHFLDOO\LIKHKDYHGRPLQLRQ LQWKHVL[WKHLJKWKRUWZHOIWKDOVRORRNWKDWLQDGLXUQDO(OHFWLRQ\RXKDYHD GLXUQDOVLJQDVFHQGLQJLQDQRFWXUQDODQRFWXUQDOVLJQDQGLI\RXFDQWKDW WKH/XPLQDULHVEHLQWKHVDPHVLJQV,PHDQRIWKHVDPHQDWXUHHVSHFLDOO\ WKDWRIWKHWLPH  $YRLG (OHFWLRQV DW VXFK WLPH DV WKH 0RRQ VHSDUDWHV IURP WKH &RQMXQFWLRQ RU 2SSRVLWLRQ RI WKH 6XQ DQG LPPHGLDWHO\ JRHV WR WKH FRQILJXUDWLRQ RI DQ LQIRUWXQH IRU LW VKRZV WKDW LI WKH SODFH RI WKH &RQMXQFWLRQ RU 2SSRVLWLRQ EH XQIRUWXQDWH WKH EXVLQHVV WKHQ EHJDQ VKDOO FRPH WR QR JRRG HQG RU FRQFOXVLRQ EXW LI WKH SODFH RI WKH&RQMXQFWLRQ RU 2SSRVLWLRQEHIRUWXQDWHLWVKRZVWKDWWKHEHJLQQLQJRIWKHEXVLQHVVWKHQLQ DJLWDWLRQVKDOOEHJRRGEXWLWVKDOOLOOVXFFHHGLQWKHHQG  %XWLIWKH0RRQVHSDUDWHIURP&RQMXQFWLRQRU2SSRVLWLRQDQGDSSO\WR D IRUWXQHDQGWKHSODFHRIWKH&RQMXQFWLRQRU2SSRVLWLRQEHXQIRUWXQDWHLW VLJQLILHVWKDWWKHEHJLQQLQJRIWKHEXVLQHVVVKDOOEHEDGDQGWKHHQGWKHUHRI JRRGDQGZKHQWKHSODFHRIWKH&RQMXQFWLRQRU2SSRVLWLRQLVIRUWXQDWHDQG WKH 0RRQ DSSOLHV LPPHGLDWHO\ WR D IRUWXQH LW GHQRWHV WKDW ERWK WKH EHJLQQLQJ DQG WKH HQG RI WKH ZRUN WKHQ EHJDQ VKDOO FRPH WR JRRG RU EH IRUWXQDWH $QG VR RQ WKH FRQWUDU\ LI VKH DSSO\ WR DQ LQIRUWXQH ZKHQ WKH SODFHV RI WKH&RQMXQFWLRQ RU2SSRVLWLRQ DUH XQIRUWXQDWH ZKHQWKHSODFHRI WKH &RQMXQFWLRQ RU 2SSRVLWLRQ RU WKHLU /RUG RU 'LVSRVHU RI WKHP EH LQ D VXFFHGHQWKRXVHLWVLJQLILHVWKDWWKHSURILWDQGJRRGWREHH[SHFWHGE\WKH EXVLQHVVVKDOOEHLQWKHHQGDFFRPSOLVKHGWKRXJKZLWKVRPHWURXEOHDQG SDLQVEXWLIWKH\EHLQD&DGHQWKRXVHYL]&DGHQWIURPWKHDVFHQGDQWRI WKH EHJLQQLQJ RI WKH WKLQJ RU EXVLQHVV RU IURP WKH DVFHQGDQW RI WKH (OHFWLRQRU5DGL[LWVKDOOEHEURNHQRIIDQGFRPHWRQDXJKW  $OEXPD]HU D PRVW OHDUQHG $UDELDQ LQ WKLV $UW VD\V WKDW ZKHQ WKH /RUGRIWKH(OHFWLRQZKLFKLVWKH3ODQHWVLJQLI\LQJ\RXUEXVLQHVV LV/RUGRI WKHVLJQRIWKH/XPLQDULHVHVSHFLDOO\WKDWRIWKHWLPH LQWKH5HYROXWLRQRI WKH\HDURIWKH:RUOGRU/RUGRIWKH\HDURU/RUGRIWKH$VFHQGDQWDWWKH WLPHRIWKH5HYROXWLRQDQGEHIRUWXQDWHWKHUHLQDQGDOVRLQWKH(OHFWLRQLW   /DWHQHVV   5XOHVJHQHUDOIRUWKHHOHFWLQJWKHEHJLQQLQJRIDQ\ZRUN   

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







&+$3,,2IWKHVLJQVDQGWKHLUVLJQLILFDWLRQVLQ(OHFWLRQVDQGRIWKH KLQGUDQFHVRIWKH0RRQEHLQJDIDUWKHULQVWUXFWLRQWRWKHMXGJLQJRI (OHFWLRQV

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

  2IWKHVLJQLILFDWLRQRIWKHF RPPRQVLJQVLQHOHFWLRQV   %XWQRWHWKH0RRQGRHVQHYHUJRRGLQWKHDVFHQGDQWXQOHVVZKHQZHOOIRUWLILHGDQGLQ JRRGDVSHFWDVXSKHOGE\WKHIRUWXQHV   1RWHVWLOOWKDW\RXULQIRUWXQHVDUHWKHLPSHGLWLQJ3ODQHWVDVLQUHODWLRQWR\RXUEXVLQHVV DQGQRW6D WXUQDQG0DUVDV\RXZLOOKDYHKHDUGLQWKHILUVWFKDSWHU   

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







&+$3,OO6KRZLQJ(OHFWLRQVE\WKH$VSHFWVRIWKH0RRQWRWKHRWKHU VL[3ODQHWVDQGE\KHU0DQVLRQV

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

 

 T  6 $Q

M

K

V

J

I

U

W

S

&RQIHUQRW ZLWKROGPHQ QRUVXHWR 3ULQFHVWDNH QR3K\VLFNRU MRXUQH\GHIHU \RXUGHVLUH

&RQYHUVH ZLWKROG PHQDQG KXVEDQG PHQUHSDLU ZKDWLV UXLQRXV DQG PDQXUH JURXQG

+LUHQR VHUYDQWVVHHN QRWDIWHU\RXU JDLQWDNH QRWKLQJLQ KDQGEHLQJ QRWEHJDQ EHIRUH

$SSO\\RXU VWXG\WR 3KLORVRSK\ DQGWDNH &RXQVHO

*R\RXU MRXUQH\DQG JRWR3UHODWHV DQG-XGJHV

$Q XQIRUWXQDWH GD\WDNHQR MRXUQH\ DYRLGWKH FRPSDQ\ RI6ROGLHUV F %HJLQ QRWKLQJEXW WKDW\RX ZRXOG KDYHKLGGHQ DQG VHFUHW

%X\ ZHDSRQVRI :DURU KRUVHVKLUH &KDPSLRQV DQGNLQGOH WKHILUHIRU $OFKHP\ 7DNHLQKDQG WKHDIIDLUVRI .LQJVDQG 3ULQFHVDQG VXHIRU SUHIHUPHQWV XQGHUWKHP

$GD\IXOORI IHDUDYRLG FRQWHQWLRQV PDNHQRU OHDJXHRUQHZ IULHQGVKLS

%HJLQDQ\ JRRGZRUN PDNH\RXU MRXUQH\WR .LQJVDQG JUHDWPHQ 3UHODWHV DQG -XGJHV 'LVSRVHRI DOOWKLQJV IRU:DU EX\FDWWOH RUEHDVWV

$GD\IRU SOHDVXUHV DQGGHOLJKWV SXWRQQHZ JDUPHQWV VHHN WKHORYHRI ZRPHQ

$GD\ILWIRU DPRURXV VSRUWV FRQWUDFW 0DUULDJH VHHNIRUDOO NLQGRI RUQDPHQWVLW LVD SURVSHURXV GD\ $SSO\WR \RXUVWXG\ PDNH DFFRXQWV FKDIIHUWDNH FKDUJHV VHQG \RXWKVWR VFKRRO DQG DFFRPSDQ\ ZLWK6DJHV

%HJLQ ZULWLQJVDQG DFFRPSWV FKDIIHU VHQG PHVVHQJHUV RU FDUULHUV

7DNHQR MRXUQH\ )OLHFRPSDQ\ IULHQGVKLSV DQGORYHRI ZRPHQ

$GD\WREH HVFKHZHG,Q DOO WKLQJVGHDO QRW ZLWKFRPSDQ\ RI JUHDWPHQ +LUHVHUYDQWV RU ZRUNPHQ PDNH VSRUWVVLQJRU SOD\DQG PDUU\

2IIHU SUHVHQWVWR 3ULQFHV DQG\RXU VXLWZLOOEH KHDUGRI 7KHP

6XHIRU MXGJHPHQW IURPJUHDW PHQEXW DYRLGULFK PHQ

6HHNWKH ORYHRI ZRPHQ DQGSXWRQ QHZ FORWKHVLI WKH0RRQ EHQRWLQ /HR

,WLVJRRGWR KLUHPHQRU PDLG VHUYDQWVWR WDNHUHFUHDWLRQ DQGFRQWUDFW PDUULDJH

,WLVJRRGWR VHQG $PEDVVDGRUV 2UDWRUVDQG &DUULHUVWDNH \RXUMRXUQH\ EXWDQG VHOO

&RPSRVH YHUVHV ZKLFK UHTXLUHD JRRG LQYHQWLRQ XVH H[HUFLVH DQGVHQG FKLOGUHQWR 6FKRRO

5HSDLUWR 6FULEHV DQG &KDQFHOORUV VHQG PHVVHQJHUV WDNH\RXU MRXUQH\ XVH 0HUFKDQGLVH IROORZ\RXU VWXG\

 

X

&RQYHUVH XQIRUWXQDWH ZLWKROG GD\WDNHQR PHQDQG MRXUQH\ KXVEDQG VSHDNQRWWR PHQEXLOG 3ULQFHV DQGSODQW QRUROGPHQ WUHHVJUDIW DYRLG EXWVHHNQRW WKH WKHORYHRI FRPSDQ\RI :RPHQ KXVEDQGPH Q $IRUWXQDWH &RQYHUVH GD\JRWR ZLWK QREOHPHQ /DZ\HUV -XGJHVDQG DQG 3UHODWHVDQG (FFOHVLDVWLFDO XVHIRU\RXU SHUVRQV ULJKWDQG UHDGWKH WDNHFRXQFHO /DZV

 

0DQVLRQ VRQ

  7KH8VHRIWKH7DEOH 
 Q



 P  P

 

 7HPSHUDWH DQG FROG  0RLVW  7HPSHU

 ;



 7HPSHU

 ;





 &



 &  &

 

 &ROGDQG PRLVW  0RLVW  'U\

0RLVW

 9   9   % 

 0RLVW  7HPSHU  7HPSHU

 %





 1



 7HPSHU

 1  1

 

 7HPSHU  'U\

 0



 'U\

 0



 0RLVW

 [



 7HPSHU



0RLVW

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





6(&7,21,,&RQWDLQLQJ5XOHVIRU(OHFWLQJVXFKPDWWHUVDVDSSHUWDLQ WRWKHVLJQLILFDWLRQRIWKHILUVW+RXVHRI+HDYHQ





&+$3,&RQWDLQLQJQHFHVVDU\5XOHVIRUSXWWLQJ&KLOGUHQWR1XUVH WR6FKRRORUWRD7UDGHDQGRI:HDQLQJRI&KLOGUHQ

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
 

$QGLI\RXVHQGDQ\FKLOGRU\RXWKWR$SSUHQWLFHIRUWLI\WKH 0RRQDQGWKH/RUGRIWKHWHQWKDQGVLJQRIWKHWHQWKDOVRWKHVLJQRIWKH WHQWKDQG/RUGRIWKHWHQWKLQWKHUDGL[RIWKH
  7RDWUDGH   $GUDZHUSDLQWHUDUWLVW   $PDNHURIPDOWEUHZHU   2IZHDQLQJRUWDNLQJFKLOGUHQIURPQXU VH  +DO\$OL UHIHUVWRWKHHOHYHQWKFHQWXU\0RVOHPDVWURQRPHUNQRZQDV $OERKD]HQ+DO\LQ/DWLQWUDQVODWLRQVRIKLVZLGHO\FLUFXODWHGZRUN 7KH 'LVWLQJXLVKHG%RRNRQ+RURVFRSHVIURPWKH&RQVWHOODWLRQV 7KLVERRNZLWKPDQ\ TXRWDWLRQVIURP'RUHWKHXVDQG9 DOHQVUHPDLQHGSRSXODUXQWLOZHOOLQWRWKH VL[WHHQWKFHQWXU\$VWURORJHUWRWKH%H\RI7XQLV'LHGDIWHU   

IURPWKHEUHDVWRIWKH1XUVHZKHQWKH0RRQLVLQ6FRUSLRRU$ULHVUHPRWH IURPWKH6XQDQGLQ6TXDUHRU2SSRVLWLRQRI9HQXVLWZLOOGRWKHIHDWDOLWWOH H[SHULHQFHDQGWULDORIWKHVH5XOHVZLOOSXWWKHPDWWHURXWRIGRXEWWKHVH DUHQRWWKLQJVRIPXFKYDOXHRUUHJDUGEXWVLQFHLWKDVEHHQWKHFXULRVLW\RI WKH $QFLHQWV WR ZULWH WKHUHRI , KDYH PHQWLRQHG WKHP DV , KDYH VDLG  ZKHUHIRUH LI \RXU FXULRVLW\ EH GHVLURXV WR PDNH WULDO RI WKHVH 5XOHV \RX PD\IROORZZKLFK\RXWKLQNPRVWDJUHHDEOHWRUHDVRQDQGWUXWK F   

&+$3,,&RQWDLQLQJWKH5XOHVRI(OHFWLRQVLQWKHFXWWLQJRI+DLU

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



&+$3,,,2IFXWWLQJWKH1DLOVRIWKHKDQGVRUIHHWDVDOVR&RUQV

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

  7KDWKDLUPD\QRWVRRQJURZ   7KDWKDLUPD\JURZVSHHGLO\   7KDWLWJURZWKLFN   5XOHVLQFXWWLQJRIWKHQDLOVRIWKHKDQGV   

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



 6(&7,21,,,2I5XOHVIRU(OHFWLQJPDWWHUVDSSHUWDLQLQJWRWKHVHFRQG +RXVH



 

&+$3,2IUHFHLYLQJDQGERUURZLQJ0RQH\

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

  2IWKHIHHW  ,QFXWWLQJRIFRUQVWKDWWKH\PD\QRWJURZVSHHGLO\   7RERUURZRUUHFHLYHPRQH\   1HLWKHUERUURZQRUOHQG   



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



&+$3,,&RQWDLQLQJRWKHU5XOHVFRQFHUQLQJERUURZLQJDQGOHQGLQJRI PRQH\

 8QOHVV\RXNQRZWKHWUXHVLJQLILFDWRUV\RXFDQKHUHLQGRQRWKLQJ  7KH$VFHQGDQWDQGLWV/RUGDUHWKHVLJQLILFDWRUVRIWKH%RUURZHURU 3HWLWLRQHU WKH VHYHQWK DQG KLV /RUG DUH VLJQLILFDWRUV RI WKH /HQGHU 0HUFXU\ DQG WKH 0RRQ VLJQLI\ WKH 7KLQJ WR EH OHQW :KHQ WKHUHIRUH \RX ILQG WKH /RUG RI WKH $VFHQGDQW DQG WKH /RUG RI WKH VHYHQWK LQ DQ\ JRRG $VSHFW RI HDFK RWKHU RU LQ UHFHSWLRQ RU WKH /RUG RI WKH VHYHQWK LQ WKH DVFHQGDQWRU0HUFXU\RU0HUFXU\MRLQHGWRWKH/RUGRIWKH$VFHQGDQWE\ ERG\ RU DVSHFW RU LQ UHFHSWLRQ RI HDFK RWKHU WKH EXVLQHVV VKDOO EH DFFRPSOLVKHG %XW LI WKH 0RRQ EH XQGHU WKH 6XQ EHDPV WKH 6XQ VKDOO VLJQLI\WKHWKLQJGHPDQGHGLQVWHDGRIWKH0RRQ   $QG +DO\ VD\V ,I WKH 0RRQ EH LQ 9LD &RPEXVWD RU LQ WKH DVFHQGDQWDWQRRQRULQWKHILUVWGHJUHHVRI*HPLQL/HRRU6DJLWWDULXVRULI WKH\ EH LQ WKH GHJUHHRUFXVSRIWKHDVFHQGDQWLWVLJQLILHVQRJRRGWRWKH /HQGHUEXWWRWKH%RUURZHUWKLVLV+DOLHVRSLQLRQ\RXKDYHEXWMXVWQRZ KHDUGLWLVQHLWKHUJRRGIRUWKH%RUURZHURU/HQGHUDWVXFKDWLPH\RXPD\ IROORZ ZKLFK \RX SOHDVH DQG LQ \RXU FXULRVLW\ WU\ WKHP ERWK DQG IROORZ ZKLFK \RX ILQG PRVW WUXH D OLWWOH H[SHULHQFH ZLOO VRRQ FOHDU WKH GRXEW KRZHYHULWLVQRZD\VJRRGWROHQGDQ\WKLQJLQWKHKRXURI6DWXUQ   %XWLI\RXGHVLUHWKDWWKHUHFHLYHGPRQH\UHPDLQORQJZLWK\RX QRW GHVLULQJ DQ\ ZD\V WR HPSOR\ LW OHW WKH DVFHQGDQW DW WKH WLPH RI WKH UHFHLSWWKHUHRIEHDIL[HGVLJQDQGWKH/RUGRIWKHDVFHQGDQWWKH0RRQDQG WKH/RUGRIWKHVHFRQGLQIL[HGVLJQVIUHHIURPPLVIRUWXQHRULPSHGLPHQW DVDOVRWKHDQJOHVRI\RXUILJXUH   %XWLIIRUVRPHRFFDVLRQV\RXKDYH \RXZRXOGVSHHGLO\GLVEXUVH WXUQDQGZLQG\RXUPRQH\ZKLFKSHUKDSVPD\EHDGYDQWDJHRXV OHWWKH   7KDWQRQHPD\NQRZRI\RXUERUURZLQJRIPRQH\   7KHPRQH\WREHERUURZHGVKDOOEHKDG   7KDWWKHERUURZHGPRQH\PD\ORQJODVW   2IOD\LQJRXWPRQH\WRDGYDQWDJH   

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





&+$3,,,2IEX\LQJWRSURILWDJDLQE\WKHVDOHWKHUHRI

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



&+$3,92IVHOOLQJWRDGYDQWDJH

(YHQWKXVPXVW\RXGRLI\RXZRXOG(OHFWDWLPHWRVHOO\RXUFRPPRGLW\DW DQ\ KLJK UDWH/HWWKH0RRQEHLQ7DXUXV&DQFHU9LUJRRU3LVFHVIUHHIURP PLVIRUWXQH DQG VHSDUDWLQJ IURP WKH &RQMXQFWLRQ RU DVSHFW RI WKH IRUWXQHV DQG DSSO\LQJ WR WKH DVSHFW QRW &RQMXQFWLRQ RI WKH LQIRUWXQHV IRU WKLV LV JRRGIRUWKH6HOOHUEXWWKHFOHDQFRQWUDU\IRUWKH%X\HU  

&+$39)XUWKHUFRQFHUQLQJ%X\LQJDQG6HOOLQJLQWKHRUGLQDU\FRXUVH RIWKH:RUOG



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

  $GYDQWDJHWRWKHEX\HU   7RNQRZWKHVLJQLILFDWRUVRIEX\HUDQGVHOOHUWKHWKLQJW REHRXJKWDQGWKHSULFH   

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

&+$39,2IEX\LQJFORWKLQJRUSXWWLQJRQRI$SSDUHO

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

  $OL%HQ5DEEDQ$O 7DEDULRU$EXDO+DVDQ$OL%LQ6DKO5DEEDQDO7DEDUL  $-HZZKRFRQYHUWHGWR,VODP3K\VLFLDQPDWKHPDWLFLDQDQGDVWURQRPHU DPRQJVWRWKHUWKLQJVKHZDVWKHILUVWWRWUDQVODWH3WROHP\·V$OPDJHVWLQW R$UDELF   



&+$39,,2IIOLWWLQJRUUHPRYLQJIURPRQHSODFHWRDQRWKHU

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



&+$39,,,&RQWDLQLQJ5XOHVRI(OHFWLQJDQ\:RUNLQWKH$UWRI 'LVWLOODWLRQRU$OFKHP\

$ 0DQ VKDOO LI KH KDYH UHJDUG WR WKH ZULWLQJV RI WKH $QFLHQWV ILQG WKDW WKHUH KDV HYHU EHHQ LQ IRUPHU $JHV VRPH DQG LQGHHG PRVW RI WKH PRUH  

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

UHPHPEHUWRGLVSRVHRIWKHPYL]\RXUVLJQLILFDWRUV DFFRUGLQJWRWKLVUXOH DQGWKDWLQWKHEHJLQQLQJRI\RXU:RUN F  



6(&7,21,9&RPSUHKHQGLQJ5XOHVLQ(OHFWLQJVXFKPDWWHUVDV DSSHUWDLQWRWKHVLJQLILFDWLRQRIWKHWKLUG+RXVH



&+$3,2IVKRUW-RXUQH\VDQGWKHLU(OHFWLRQV



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



&+$3,,2IPDNLQJRI)ULHQGVKLSEHWZHHQ%UHWKUHQRUDQ\WZRDW YDULDQFH

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

  )\RXUEURWKHURU.LQVPDQEH\RXUEHWWHU\RXUHTXDO\RXULQIHULRU   



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



&+$3,,,2IDSSO\LQJWKHPLQGRUVWXG\WR'LYLQHPDWWHUVRU FRQWHPSODWLRQV

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





  7KHVLJQLILF DWLRQRIWKHQLQWKKRXVH   2IWKHWKLUG  7KHSURSHUW\EHORQJLQJWRWKH&KDSWHUVHWDSDUWIRUWKHPDLQWHQDQFHRIWKH 3UHEHQGDULHV$FRQVLGHUDEOHSRUWLRQRILWOD\LQDQGURXQG/RQGRQ   

6(&7,219&RQWDLQLQJ5XOHVRI(OHFWLRQVDSSHUWDLQLQJWRWKH IRXUWK+RXVH 

&+$3,2IEXLOGLQJ+RXVHV

(QGHDYRXU WKHUHIRUH DW WKH EHJLQQLQJ RI \RXU ZRUN WR IRUWLI\ WKH /RUG RI WKH$VFHQGDQWDQGFXVSRIWKH$VFHQGDQWLWVHOIWKH0RRQDQGLWVGLVSRVLWRU DQG WKH 3ODQHW WR ZKLFK VKH LV MRLQHG E\ ERG\ RU $VSHFW DOVR WKH IRXUWK KRXVHDQGLWV/RUGWKHVHFRQGDQGLWV/RUGDQGWKHWHQWKDQGLWV/RUGDQG VRPXFKWKHUDWKHULI\RXLQWHQGWKHKRXVHWREHKLJKDQGLQVXFKDFDVHEH VXUH\RXUVLJQLILFDWRUVEHQRWXQGHUWKHHDUWKIRUWKDWFDXVHVVORZSURJUHVV LQWKHIDEULFDQGWKDWLWVKDOOQHYHUEHEURXJKWWRWKDWKHLJKWDQGVKDSHLW ZDV ILUVW LQWHQGHG WR EH RI \HW LI WKH 0RRQ EH LQ WKH ILIWK RU WKLUG EHQHYROHQWO\ DVSHFWLQJ DQ\ VLJQLILFDWRU RU D IRUWXQH DERYH WKH HDUWK LW KLQGHUVQRWPXFKSODFHDOVR3DUWRI)RUWXQHLQDQDQJOHDQGIRUWLI\LWDQGLWV 'LVSRVLWRUDQGSODFH'UDJRQV7DLOLQWKHWZHOIWKIRUWLI\DOVR0HUFXU\DQGLWV /RUGDQGOHWQRW0DUVEHKROGWKHVHVLJQLILFDWRUVZKLFKKDYHEHHQQDPHG QHLWKHUOHWKLPKDYHDQ\SRZHUZKHQ\RXEHJLQ\RXUZRUNEXWLILWIDOORXW VRWKDW\RXFDQQRWKHOSLWEXWWKDWKHZLOOKDYHVRPHSRZHULQ\RXUILJXUH SODFH9HQXVIRUWXQDWHLQWKHSODFHRI0DUVRUPRUHSODLQO\OHW9HQXVKDYH JUHDW SRZHU DQG GLJQLW\ LQ WKH GHJUHH DQG VLJQ ZKHUHLQ0DUV LV ORFDWHG DQG OHW KHU EH LQ D 6H[WLOH RU 7ULQH RI KLP /HW 6DWXUQ DOVR EH LQ QR FRQILJXUDWLRQRI9HQXVDVQHDUDV\RXFDQDQGPDNHWKH0RRQLQFUHDVLQJ LQ OLJKW DQG PRWLRQ DQG MRLQHG WR-XSLWHU IRU WKLV FDXVHV WKH IDEULF WREH EHDXWLIXO DQG IDLU DQG KDYHDVSHFLDOFDUHWKH0RRQEHQRWZLWK6DWXUQRU 'UDJRQV7DLORU6DWXUQLQWKH$VFHQGDQWRUIRXUWKIRUWKLVZLOOLPSHGLWHWKH ZRUN DQG FDXVH GHOD\V WKHUHLQ DQGSHUKDSVKLQGHUWKHILQLVKLQJWKHUHRI DQGLILWEHILQLVKHG\HWSHUKDSVLWZLOOVWDQGORQJHPSW\DQGLILQKDELWHG \HWZLOOWKHLQKDELWDQWVILQGQRJRRGWKHUHLQEXWPXFKYH[DWLRQWURXEOHV IHDUVLQILUPLWLHVDQGPDQ\WULEXODWLRQVDQGWKHIDEULFVKDOOVRRQEHVXEMHFW WRGHFD\DQGIDOOGRZQDQGLIWKH$IIOLFWLRQEHE\0DUVDQGWKH$VFHQGDQW EHDVLJQRIVKRUWDVFHQVLRQVLWFDXVHVILUHVWKHUHLQZKHUHIRUHOHWLQVXFKD SRVLWXUH  WKH0RRQ EHLQFUHDVLQJLQOLJKWDQGPRWLRQDQGWKH/RUGRIWKH KRXVH RI WKH 0RRQ LQ DVSHFW WKHUHZLWK DQG WKH /RUG RI WKH $VFHQGDQW EHKROGLQJ WKH $VFHQGDQW DQG WKHVH IUHH IURP DOO LPSHGLWLRQV IRU LI WKH\ EHKROG QRW WKHLU RZQ KRXVH WKH /DQGORUG RI WKH )DEULF VKDOO QRW OLYH WKHUHLQ  /HW'UDJRQVWDLOEHE\QRPHDQVLQWKH$VFHQGDQWVHFRQGRUIRXUWK EXWHVSHFLDOO\LQWKHVHFRQGIRULWFDXVHVSURIXVHQHVVEXW\RXPD\VDIHO\ SODFH'UDJRQVKHDGLQDQ\RIWKRVHSODFHV F  %XWLIDOOWKHVH\RXFDQQRWSRVVLEO\DW\RXUWLPHSODFHDFFRUGLQJDV \RXKDYHKHDUG\HWIRUWLI\WKH$VFHQGDQWDQGLWV/RUGWKH0RRQDOVRWKH VHFRQGDQGIRXUWKDQGWKHLU/RUGVRUDWOHDVWWKHVHFRQGDQGOHWWKH0RRQ EH LQ JRRG FRQILJXUDWLRQ RU &RQMXQFWLRQ ZLWK -XSLWHU DQG LI SRVVLEOH OHW -XSLWHU EH LQ WKH VHFRQG IRUWLI\ DOVR WKH 3ODQHW WKDW KDV H[DOWDWLRQ LQ WKDW VLJQ ZKHUHLQ WKH0RRQ LV LI \RX FDQKRZHYHUIRUWLILHVPDQ\DVPD\EHLI QRWDOODQGHVSHFLDOO\\RXUFKLHIVLJQLILFDWRUV   7KH/DQGORUGVKDOOQRWLQKDELWWKHKRXVHEXLOW   

 

&+$3,,2I%XLOGLQJRI&DVWOHVDQG&LWLHV


  ,QWKHEXLOGLQJR IDFLW\PDNH6DWXUQKDYHDILUPSODFHLQWKHPLGKHDYHQDQG LQWKHDVFHQGDQWRIWKHIRXQGLQJRIWKHFLW\   7KHVLJQLILFDWRUVRIWKHIRUWXQHDQGJRRGLQDQ\FLW\   

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

R

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



&+$3,,,2I%XLOGLQJRI&KXUFKHV

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

 

([DOWDWLRQRIWKH$VFHQGDQWEHZHOOSODFHGWKHWHQWKDQGLWV/RUGWKHQLQWK DQGLWV/RUGWKH0RRQDQGLWV'LVSRVLWRUDQG-XSLWHULI\RXFDQQRWREVHUYH DOOWKHUHVW F  



&+$3,92I%XLOGLQJRU(UHFWLQJRI0LOOV

,QEXLOGLQJRI0LOOVEHVXUH\RXSODFHWKH0RRQLQ$ULHVLQWKH$VFHQGDQWRU /LEUD RU WKH ODWWHU SDUW RI9LUJR DQG E\ QR PHDQV OHW KHU EH LQ&DQFHU RU &DSULFRUQEXWLQWKHDIRUHVDLGVLJQVDVDOVRWKH/RUGRIWKH$VFHQGDQWRULQ 6H[WLOH DQG 7ULQH WKHUHXQWR IUHH IURP WKH 0DOHYROHQW $VSHFWV RI WKH ,QIRUWXQHV 2EVHUYH DOVR WKLV WLPH LQ EHJLQQLQJ DQ\ ZRUN EHORQJLQJ WR 0LOOV F  



&+$392ISXOOLQJGRZQRUGHVWUR\LQJRI+RXVHVRUDQ\)DEULF ZKDWVRHYHU

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

 



&+$39,&RQWDLQLQJUXOHVRI(OHFWLRQVLQEX\LQJRI/DQG+RXVHVRU +HULWDJHV

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

  7KHVLJQLILFDWRUVRIWKHEX\HU   2IWKHVHOOHU   7KHSULFHRIWKHODQGRUKRXVH   7KDWWKHODQGPD\EHSXUFKDVHGE\WKH%X\HUDQGWKDWDWDJRRGUDWHRUWRKLVDGYDQWDJH   

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



&+$39,,2I%X\LQJRI/DQGRUJURXQGIRU+XVEDQGU\DQGQRWWR EXLOGRQ

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

WKDWWKHODQGVKDOOEHYHU\IHUWLOHWKHVDPHXQGHUVWDQGLIKHEHLQ FRQILJXUDWLRQZLWK6DWXUQ F  %XW LI 6DWXUQ FDQQRW EH PDGH WR EH EHKHOG RI-XSLWHU \HW OHW9HQXV EHKROGKLPDQGIRUWLI\WKHZDWHU\VLJQVIRUWKH)RUWXQHVVKDOOEHVWURQJHU LQWKHPWKHQLQWKHDLU\OHWWKH0RRQEHLQWKHWHQWKLQ7DXUXVEHKROGLQJ WKHORUGRIWKH$VFHQGDQWZLWKDEHQHYROHQW$VSHFWDQGOHVWWKH0RRQDQG WKHVLJQDVFHQGLQJEHIUHHIURPDOOPDQQHURIPLVIRUWXQH  

&+$39,,,2IEULQJLQJRI:DWHUWRDKRXVHHLWKHUE\&RQGXLW3LSHRU 3XPSDQGRIGLJJLQJRI:HOOV



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

  
%XWLI\RXFDQQRWREVHUYHDOOWKLV\HWDVPXFKDV\RXFDQEXW FKLHIO\IRUWLI\WKH0RRQWKH/RUGRIWKH$VFHQGDQWDQG0LGKHDYHQDQG WKHFXVSVWKHUHRIHVSHFLDOO\WKHFXVSRIWKHWHQWK 





&+$3,;2I7LOODJHRU0DQXULQJRIWKH*URXQG

0DUNWKHILUVWKRXU\RXEHJLQWR7LOORU0DQXUHWKHJURXQGDQGIRUWLI\WKH $VFHQGDQWWKH/RUGWKHUHRIDQGWKH0RRQDQGWKH3ODQHWZKRLVWKH 'LVSRVLWRURIWKH0RRQVRWKDWWKH\EHUHFHLYHGRIWKH)RUWXQHVRUVXFK 3ODQHWVDVDUHIUHHIURPPLVIRUWXQHDQGZHOOGLJQLILHGDQGWKDWRXWRI $QJOHVRUVXFFHGHQWKRXVHVDWOHDVW  %XW LI DOO WKLV FDQQRW H[DFWO\ EH IROORZHG \HW OHW WKH 0RRQ EH IRUWXQDWHO\UHFHLYHGDQGWKDWRXWRIDQDQJOHE\D)RUWXQHDQGLISRVVLEOH SODFH WKRVH 3ODQHWV \RX FDQ PRVW IRUWLI\ LQ WKH VHFRQG KRXVH DOVR IRUWLI\ 3DUW RI )RUWXQH DQG WKH /RUG RI WKH SUDHYHQWLRQDO &RQMXQFWLRQ RI WKH /XPLQDULHVDQGSODFHKLPDQDQJOH F  





&+$3;2I5HQWLQJRU+LULQJDQG/HWWLQJRI+RXVHV/DQGRU)UXLW RUDQ\RWKHUWKLQJWREH/HWRU+LUHG

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



&+$3;,RI3ODQWLQJRI7UHHVRU*UDVVLQJ

8VXDOO\LQWKLVZRUNWKHVH5XOHVDUHWREHREVHUYHG/HWWKH0RRQEHLQ 7DXUXV$TXDULXV/HR3LVFHVRU9LUJREXWHVSHFLDOO\LQ7DXUXVDQGLQ6H[WLOH RU7ULQHRI9HQXVEXWLILWEHVR\RXFDQQRWSODFHKHULQ7DXUXVOHWKHUEHLQ $TXDULXVIRUWKDWLWLVQH[WRIWKHVHDERYHQDPHGVLJQVWREHFKRVHQ$QGLI \RX FDQQRW SODFH KHU LQ$TXDULXV OHW KHUEHLQ/HREHKHOGRIDEHQHYROHQW SODQHWRXWRIDZDWHU\VLJQOHWKHUDOVREHZHOOGLJQLILHG,PHDQIUHHIURP WKH LOO DVSHFWV RI WKH 0DOHYROHQWV /HW 6DWXUQ EH DOVR GLUHFW DQG LQ WKH DVFHQGDQWHOHYHQWKILIWKRUVHFRQGLQKLVRZQHVVHQWLDOGLJQLWLHV  $QGLI\RXFDQQRWSODFH6DWXUQLQWKH$VFHQGDQWOHW-XSLWHUEHWKHUH DQGLQ6H[WLOHRU7ULQHRI6DWXUQKRZHYHUOHW6DWXUQEHLQZKDWSODFHRIWKH ILJXUH\RXSOHDVHKHRXJKWWREHZHOODVSHFWHGE\-XSLWHUDQGOHWKLPEHLQ DSODFHZKHUHKHKDVHVVHQWLDOGLJQLWLHV  %XW LI QHLWKHU RI WKHVH EHSODFHGLQWKH$VFHQGDQWOHWWKH0RRQEH WKHUHRULQWKHWHQWKHOHYHQWKILIWKRUWKLUGIUHHIURPDOOLPSHGLPHQWIRU \RXPXVWKDYHDVSHFLDOFDUHWKDWLQDOO3ODQWLQJVDQG6RZLQJVWKH0RRQEH FKLHIO\IUHHIURPPLVIRUWXQHDQGQRWRQO\VREXWZHOOGLJQLILHGHVVHQWLDOO\ DQG XSKHOG E\ WKH RWKHU 3ODQHWV YL] WKH )RUWXQHV DQG WKHLU EHQHYROHQW UD\V  ,Q DOO 3ODQWLQJV DQG 6RZLQJV DV \RX KDYH KHDUG DOUHDG\ LQ EXLOGLQJV VHHWKDW\RXGHELOLWDWH0DUVDQGKLQGHUKLPIURPDQ\SRZHULQ \RXUZRUNOHWWKH0RRQDOVREHLQQRFRQILJXUDWLRQRIKLPQHLWKHUOHWKLP EHLQWKH$VFHQGDQWWHQWKHOHYHQWKILIWKVHFRQGRUWKLUGRULQDQ\DVSHFW WRHLWKHURIWKHPRUWKHLU/RUGVLISRVVLEOHIRUKHLVGHVWUXFWLYHOHWDOVR3DUW 

  )L[HGVLJQVDUHWREHFKRVHQDQGFKLHIO\7DXUXV   

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



&+$3;,,2I6RZLQJRI6HHGVLQWKHJURXQG

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·VIULHQG$QGUHD$OFLDWR WKHOHJDO VFKRODU0 RVWIDPRXVIRUKLV (PEOHPDWDSXEOLVKHGLQGR]HQVRIHGLWLRQVIURP RQZDUG   *UDIWHG   7KDW6HHGVVRZQPD\SURVSHUDQGFRPHWRJRRG   

FRQILJXUDWLRQV RI WKH PDOHYROHQWV /HW WKH0RRQ DOVR EHIUHHIURPWKH6XQ EHDPV DQG LQ HVVHQWLDO RU DFFLGHQWDO GLJQLWLHV LQFUHDVLQJ LQ OLJKW DQG PRWLRQ IRU LI WKH0RRQ EH GHFUHDVLQJ LQ OLJKW DQGQXPEHURUPRWLRQDQG XQGHU WKH 6XQ EHDPV WKH 6HHGV VRZQ ZLOO QRW FRPH WR JRRG %XW NQRZ WKDW LQ 6RZLQJ RI 3HDV WKH0RRQPXVWEHGHFUHDVLQJLQOLJKWDQGPRWLRQ HVSHFLDOO\LQOLJKWIRURWKHUZLVHWKH\ZLOOQHYHUOHDYHEORRPLQJ F  $QGLIWKH6HHGVEHVHHGVRI7UHHVRUVXFKDVHQJHQGHURUSURGXFH 7UHHVOHWWKH0RRQEHLQ7DXUXVDQG\RXKDYHDOUHDG\KHDUG F  



&+$3;,,,2IULGLQJ+RXVHVRUSODFHVIURPHYLO6SLULWV

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



 6(&7,219,&RQWDLQLQJ5XOHVIRU(OHFWLQJDWLPHIRUDQ\:RUNRU WKLQJDSSHUWDLQLQJWRWKHILIWK+RXVH





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

 



&+$3,6KRZLQJDILWWLPHIRUJHWWLQJRI%R\VRU*LUOV

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

  7RHQJHQGHUER\RUPDQFKLOG   $ER\LVFRQFHLYHG   $*LUO  $+HUPDSKURGLWH  7ZLQV  7RJHWER\V  &RQFHSWLRQLVKLQGHUHG   

/HW \RXU $VFHQGDQW EH /LEUD DQG SODFH WKH 0RRQ WKHUHLQ DQG RQ WKH WHQWK EHLQJ D IUXLWIXO VLJQ EXW SODFH WKH UHVW RI WKH &DQFHU 6LJQLILFDWRUV LQ PDVFXOLQH VLJQV DQG WKLV FDXVHV FRQFHSWLRQ DQG WKDW RI D 0DOH FKLOGH EXW LW LV WR EH XQGHUVWRRG WKHQ WKDWWKHZRPDQEHVRXQGLQ KHDOWK DQG QDWXUH DQG RI FDSDFLW\ IRU VXFK PDWWHUV




&+$3,,2I'HOLYHULQJDGHDG&KLOG

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



&+$3,,,2I&KULVWHQLQJRU&LUFXPFLVLQJRI&KLOGUHQ

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





&+$3,92IJLYLQJDQGUHFHLYLQJRI*LIWVRU3UHVHQWV

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

%XW NQRZ WKDW LQ VHQGLQJ RI 3UHVHQWV RU *LIWV \RX DUH WR IRUWLI\ WKHILIWK+RXVHDQGLWV/RUGDVDOVR-XSLWHUDQGOHW0DUVERWKLQUHFHLYLQJ DQG JLYLQJ EH LQ QR FRQILJXUDWLRQ ZLWK WKH $VFHQGDQW WKH VHFRQG WKHLU /RUGV WKH 0RRQ LWV GLVSRVLWRU 3DUW RI )RUWXQH LWV /RUG 3DUW RI 6XEVWDQFH -XSLWHUWKHILIWK+RXVHRUWKHLU/RUGVDQGLISRVVLEOHOHWWKH$VFHQGDQWDQG ILIWK+RXVHEHLQFRPPRQVLJQVDQGNQRZWKDW6DJLWWDULXVDQG3LVFHVDUHWR EH SUHIHUUHG EHIRUH*HPLQL RU 9LUJR \HW 9LUJR LV EHIRUH *HPLQL




&+$39&RQWDLQLQJ5XOHVIRUHOHFWLQJDWLPHIRUSXWWLQJRQRI $SSDUHO

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


&+$39,2I)HDVWLQJRUHDWLQJRIPHDW

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

  1RUVKRXOG\RXILUVWSXWR QQHZFORWKHVZKHQWKHPRRQLVSODFHGLQ/HRLWLV HYHQZRUVHLIDWWKHVDPHWLPHVKHVKRXOGEHDIIOLFWHG7KHVDPHVD\V+HUPHVLQ &HQWLORTXLXP   2ISXWWLQJRQQHZ$SSDUHO   2IIHDVWLQJRUHDWLQJRIVXSHUIOXLWLHV   7KLQJV  

&DEEDJH 3DUVQLSV 7XUQLSV &DUURWV F QHLWKHU RI )UXLW DV $SULFRWV 3HDFKHVRUDQ\RWKHU3OXPRU)UXLWDV&KHUULHV F  %XWLIVKHDSSO\WRWKH6XQRU0DUVE\D7ULQH\RXPD\VDIHO\HDWRI YDULHWLHVDQGGLYHUVHVRUWVRI0HDWV F8QGHUVWDQGWKHVDPHLIVKHDSSO\ WR9HQXV  ,I VKH DSSO\ WR6DWXUQ KDYH D FDUH RI VWDOH PHDWV RU VXFK DV KDYH EHHQNHSWORQJLQVDOW  ,I VKH EH LQ $ULHV RU &DSULFRUQ DSSO\LQJ WR -XSLWHU \RX PD\ HDW RI YDULHW\RIJHOGHG&DWWOH F  %XWLWLVQRZLVHVDIHWRHDWRIZKDWGLHGRILWVHOILIVKHEHLQD6TXDUH RI 6DWXUQ RU LQ &RQMXQFWLRQ RU 2SSRVLWLRQ RI KLP QHLWKHU LV LW JRRG WR HDW 9HQLVRQZKHQVKHLVLQ/HRQRUZKHQVKHDSSOLHVWR0DUVRXWRI9LUJR  %XWLIVKHEHLQ*HPLQLRUWKHDLU\WULSOLFLW\DSSO\LQJWR0HUFXU\LWLV QRW VDIH WR HDW DQ\ %LUG RI D KRW QDWXUH RU FRQVWLWXWLRQDQGLIWR0DUVDOO PHDWVWKDWDUHFDOLVDFWLYHRURIDKRWTXDOLW\DUHDOVRWREHVKXQQHG  ,I LQ /HR DSSO\LQJ WR 6DWXUQ LW LV QRW VDIH WR HDW DQ\WKLQJ RI D FROG RSHUDWLRQ F7KXVPXFKIRUHDWLQJ   

&+$39,,2I'ULQNLQJRI:LQHDQGRWKHU'ULQNV

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·VZDUKRUVH   +HDYHQFORXG   

7DNHWKLV&XSDQGNQRZWKDWLIWKHZLQHEHQRWJRRGLWLVWKHIDXOW RIWKRVHWKDWSUHVVHGWKHJUDSHVIRUKDGWKH\REVHUYHGWKLVUXOH,ZLOOKHUH JLYH\RXLWKDGEHHQPXFKEHWWHUEXWWREHVKRUWWKHUHFHLSHLVWKXV   5HFLSH3LVFHVRU7DXUXVDQGSXWWKH0RRQWKHUHLQLQFRQILJXUDWLRQ RI 9HQXV WKLV LV DOO EXW WKLV ,·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

&+$39,,,2IZULWLQJRI/HWWHUVRUDQ\WKLQJHOVHRI,QJHQXLW\






  $UHFLSHWRPDNHJRRGZLQH   7KDWRQHEHQRWRIIHQVLYHRUTXDUUHOVRPHLQGULQN   2YHUGRQHWKLQJV   2IZULWLQJRIOHWWHUVRUDQ\RWKHUWKLQJ   



&+$3,;2IPDNLQJ2GRULIHURXVVPHOOVDQGXQJXHQWV

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



&+$3;2IVHQGLQJ$PEDVVDGRUVRU0HVVHQJHUV

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

  2IPDNLQJRIRGLIHURXVVPHOOVRUXQJXHQWV   7KHSURGXFWVRIDSSO\LQJIXPHVRUVPRNHWRWKHSDUWVRIDVWRWKHERG\LQ PHGLFLQHWRIXPLJDWHLQSDUW   5XOHVIRUVHQGLQJ0HVVHQJHUVRU$PEDVVDGRUV   )RUVHQGLQJWRNLQJVRUJUHDWPHQ   

,Q JRLQJ RU VHQGLQJ WR .LQJV RU JUHDW PHQ OHW QRW WKH0RRQ EHLQ *HPLQLRU3LVFHV   $OVR LI \RX VHQG RU JR WR 3RSHV &DUGLQDOV %LVKRSV 'HDQV 3UHEHQGVRUDQ\EHORQJLQJWRWKH&KXUFKOHWWKH0RRQEHLQ6H[WLOHRU7ULQH RI -XSLWHU RXW RI WKH DIRUHVDLG SODFHV DQG LI SRVVLEOH ZLWK UHFHSWLRQ RU LQ UHFHSWLRQZLWKWKH/RUGRIWKH$VFHQGDQW   ,I \RXU EXVLQHVV EH ZLWK :DUULRUV DV *HQHUDOV RU DQ\ 6ROGLHUV ZKDWVRHYHU XQGHUVWDQG WKH VDPH E\ 0DUV DQG OHW KLP EH DFFRUGLQJO\ SODFHG EXW OHW QRW WKH DVSHFW RI WKH0RRQ EH IURP $QJOHV EXW VXFFHGHQW +RXVHV   ,I WR +XVEDQGPHQ RU DQFLHQW PHQ XQGHUVWDQG WKH VDPH RI 6DWXUQ   7R:RPHQOHWKHUDSSO\WR9HQXV   7R0HUFXU\OHWWKH0RRQEHMRLQHGRUKDYHDVSHFWLI\RXVHQGWR \RXQJPHQRIQRDOOLDQFHRUUHODWLRQWR\RXRUWR6FULYHQHUV6HFUHWDULHVRU 6FKRODUV FEXWOHW0HUFXU\EHIUHHIURPPLVIRUWXQHDQGLPSHGLPHQWDQG XQGHUVWDQGWKHVDPHRIWKHIRUHJRLQJ3ODQHWVLI\RXUEXVLQHVVEHZLWKVXFK DVDUHVLJQLILHGE\WKHP$QGWKXVPXFKIRUWKH(OHFWLRQVDSSHUWDLQLQJWR WKHILIWK+RXVH 

 6(&7,219,,2I(OHFWLRQVDSSHUWDLQLQJWRWKHVL[WK+RXVH





&+$3,2IWKHWUXH.QRZOHGJHRIWKH&ULVLVRU&ULWLFDODQG-XGLFLDO 'D\VYHU\XVHIXOIRUWKRVHWKDWVWXG\3K\VLF

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

  7R&KXUFKPHQ   7RVROGLHUV  2DQFLHQWPHQDQGKXVEDQGPHQ   7RZRPHQ   7RVFKRODUV6HFUHWDULHV6FULYHQHUVRU\RXQJPHQ   7KHHUURURIPRVW3K\VLFLDQV   $ZKRUH   )DOVH  ,JQRUDQW   

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

,Q OLNH PDQQHU XQGHUVWDQG LQ D MXGLFLDO GD\ LI WKH0RRQ EH ZHOO GLJQLILHGDQGDVVLVWHGDJRRG&ULVLVPD\EHH[SHFWHGLIZHDNRUDIIOLFWHG MXGJHWKHFRQWUDU\  1RZ E\ UHDVRQ WKH 0RRQ LV VRPHWLPHV VZLIW DQG DW RWKHU WLPHV VORZHU RI PRWLRQ QHYHUUHWDLQLQJDFRQVWDQWFRXUVHLWPXVWQHHGVIROORZ VXFKDVDUHLJQRUDQWWKHUHLQPXVWQHHGVEHLJQRUDQWLQNQRZLQJRUILQGLQJ RXW WKH WUXH &ULVLV DQG ZKHWKHU LW ZLOO EH JRRG RU EDG WKDW LV QRW DFTXDLQWHGZLWKWKHVWDUV   %XWQRWHWKDW\RXPD\WKHEHWWHUXQGHUVWDQGWKHUHDVRQWKHUHRI LW LV WKLV VRPHWLPHV E\ KHU VORZQHVV RI PRWLRQ VKHFRPHVWRWKH&ULVLVDW WKHVL[WKGD\DIWHUWKHEHJLQQLQJRIWKHGLVHDVHDQGDJDLQVRPHWLPHE\KHU VZLIWQHVV DWWKHHLJKWKRUQLQWKGD\ZKHUHIRUHWKH\PXVWQHHGVIDLOWKDW FRQFOXGH LW WR EH DOZD\V DW WKH VHYHQWK GD\ DQG VRDFFRUGLQJO\ LQ WKH RWKHU&ULVLVVKHFRPHVVRRQHURUODWHUYHU\RIWHQ  6RWKHQ\RXVHHWKHHUURUDQGLJQRUDQFHRIPRVWRIRXUSUHWHQGLQJ 3K\VLFLDQVDQGWKHUHDVRQRIWKH&ULVLVDQGXVHVWKHUHRILWUHVWVWKHUHIRUH QRZZHSURFHHGDQGKDVWHQLQWRRXUURDGDJDLQ F 



&+$3,,2I$SSO\LQJ0HGLFLQHVJHQHUDOO\WRDOOWKHSDUWVRIWKHERG\ RI0DQ



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



&+$3,,,2IWKH$GPLQLVWUDWLRQRI5HPHGLHVWRWKH'LVHDVHVRIWKH +HDG

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



  $QH[WHUQDODSSOLFDWLRQRIDFRQVLVWHQF\KDUGHUWKDQRLQWPHQWSUHSDUHGIRUXVH E\VSUHDGLQJLWRQOLQHQOHDWKHUVLONRURWKHUPDWHULDO,WLVDGKHVLYHDWWKH RUGLQDU\WHPSHUDWXUHRIWKHERG\DQGLVXVHGDFFRU GLQJWRLWVFRPSRVLWLRQWR SURGXFHDPHGLFLQDOHIIHFWWRELQGSDUWVWRJHWKHUHWFDVDSRURXVSODVWHUVWLFNLQJ SODVWHU   2IJLYLQJSK\VLFZKHQWKHLQILUPLW\LVDOORYHUWKHERG\   :KHQWKHUHPHG\RUPHGLFLQHLVWREHDGPLQLVWHUHG   :KHQUHPHGLHVI RUGLVHDVHVRIWKHKHDGDUHWREHSUHVFULEHG   :DWHU\GLVFKDUJHIURPQRVHRUH\HV   



&+$3,92I$SSO\LQJUHPHGLHVWRWKHH\HVDQGSUHSDUDWLYHVLQ JHQHUDO

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





&+$392I$SSO\LQJUHPHGLHVWRWKH1RVH

0DUNQRZLI\RXZRXOGDSSO\DQ\UHPHG\IRUWKHLQILUPLWLHVRIWKH1RVH DV XQJXHQWV VXIIXPLJDWLRQV RU VQHH]LQJSRZGHUV RU VXFK OLNH F OHW WKH DVFHQGDQW EH &DQFHU /HR RU 9LUJR DQG WKH 0RRQ LQ WKH DVFHQGDQW LQ FRQILJXUDWLRQZLWKDIRUWXQHDQGIUHHIURPDOOPDQQHURIDIIOLFWLRQRUWKH FRQILJXUDWLRQV RI WKH 0DOHYROHQWV DQG OHW KHU QRW EH LQ FRPEXVWLRQ QRU MRLQHGWRD3ODQHWWKDWLVZHDNRUUHWURJUDGH F 

  :KHQPHGLFLQHVIRUWKHH\HVDUHWREHDSSOLHG   6FDULILFDWLRQLVW KHSURFHVVRIFUHDWLQJERG\DUWZLWKVFDUWLVVXH7KHVFDUWLVVXHLV XVXDOO\FUHDWHGE\EXUQVDEUDVLRQ VRUFXWWLQJV   /HWQRWWKDWRUJDQEHWRXFKHGZLWKLURQZKHQWKHPRRQLVWHQDQWHGLQWKHVLJQ ZKLFKUXOHVWKDWRUJDQ   2IDSSO\LQJUHPHGLHVIRULQILUPLWLHVRIWKHQRVH   $SSO\LQJIXPHVLQWHUQDOO\DVPHGLFLQH   





&+$39,2ILQMHFWLQJRI&OLVWHUV FDQG6WRSSLQJRI5KHXPVRU )OX[HV

,Q JLYLQJ RI &O\VWHUV UHPHPEHU WR PDNH \RXU DVFHQGDQW $ULHV /LEUD 6FRUSLRRU$TXDULXVKRZHYHUOHWWKH0RRQEHLQRQHRIWKHPDQGWKH/RUG RIWKHDVFHQGDQWIUHHIURPWKHFRQILJXUDWLRQVRIWKH/RUGRIWKHVL[WKDQG WKH 0RRQ DSSO\LQJ WR 9HQXV IRU WKLV ZLOO EH KHOSIXO LQ VXFK FDVHV RU EXVLQHVVHV   ,Q6WRSSLQJRI5KHXPVRU)OX[HVOHWWKH0RRQEHLQ7DXUXV9LUJR RU&DSULFRUQ







&+$39,,2IWKHDGPLQLVWUDWLRQRIJDUJDULVPVRUVQHH]LQJVDQGVXFK OLNH



8VHWRPDNHWKH$VFHQGDQWLQWKLVPDQQHURIZRUNHLWKHU&DQFHUÅ/HRRU 9LUJR DQG WKH 0RRQ GHFUHDVLQJ LQ OLJKW DQG PRWLRQ DQG LQ 7DXUXV GHVFHQGLQJLQODWLWXGHRULQ$ULHVEXWEHVKHLQZKDWVLJQVKHZLOOOHWKHU EHDSSO\LQJWRWKHIRUWXQHV/HWDOVRWKH$VFHQGDQWLWV/RUGDQGWKH0RRQ EH LQ VLJQV WKDW FKHZ WKH FXG DV DUH $ULHV 7DXUXV DQG &DSULFRUQ \HW $OVD\DWFRPPHQGV&DQFHU/HRDQG9LUJRDV\RXKDYHKHDUGVHHDOVRWKDW \RXOHWQRWWKH0RRQEHLQD6TXDUHRI-XSLWHUHVSHFLDOO\RXWRI$ULHV 







&+$39,,,2IJLYLQJRI9RPLWV

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

  (QHPDV   2ILQMHFWLQJ&O\VWHUV   2IVWRSSLQJ5KHXPVRUIOX[HV   2IDGPLQLVWHULQJJDUJDULVPVDQGVQHH]LQJSRZGHUV   8QNQRZQ   2IJLYLQJRIYRPLWV   

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



&+$3,;2IDGPLQLVWHULQJ3XUJHVDQG3K\VLFOD[DWLYH

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

  $FDXWLRQGLOLJHQWO\WREHQRWHG   2IDGPLQLVWHULQJ3XUJHV   7KH$XWKRUVSUDFWLFHLQKLVDGPLQLVWHU LQJRI3XUJHV   

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·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

  7RSXUJHWKH6SOHHQ   7RSXUJHWKH/LYHU   7KH+HDUWDQGRIDGPLQLVWHULQJFRUGLDOV   7KH/XQJV   7KH*DOO  7KHPHPEHUVRIJHQHUDWLRQ   7KH%UDLQ  2ISUHSDULQJ0HGLFLQHV   

&+$3;2I%DWKLQJDQG(OHFWLQJDWLPHWKHUHIRUH






&+$3;,2I(OHFWLQJDWLPHIRUXVLQJ6XUJHU\



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







  2I%DWKLQJIRU+HDOWK   )RUFOHDQOLQHVV   2I%DWKLQJRUDQRLQWLQJWRUHPRYHVXSHUIOXRXVKDLU   2IXVLQJ6XUJHU\   



&+$3;,,2I(OHFWLQJDWLPHIRU3KOHERWRP\RU%ORRGOHWWLQJRI DSSO\LQJDOVR9HQWRVLHV 5HPHPEHUWKDWLQ3KOHERWRP\WKHUHDUHIRXUWKLQJVFRQVLGHUDEOHYL]





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

2SSRVLWLRQ RU )XOO WR WKH ODVW6TXDUH RU4XDUWHUHOGHU\HDUVIURPWKHODVW 6TXDUH RU 4XDUWHU WR WKH &RQMXQFWLRQ RU &KDQJH ROG DJH LI QHFHVVLW\ VR UHTXLUHWKDWWKH\PXVWEHOHWEORRG  :KDW KDV EHHQ VDLG RI 3KOHERWRP\ LV DOVR WR EH XQGHUVWRRG LQ DSSO\LQJ9HQWRVLHV  



&+$3;,,,2IWKH3K\VLFLDQVJRLQJWRWKH3DWLHQW

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



&+$3;,92I+LULQJRI6HUYDQWV

0DQ\WKLQJVDUHVLJQLILHGE\WKHKRXVHV\RXKDYHKHDUGLQRXUVHFRQG 7UHDWLVH ZKHUHLQ \RX ILQG 6HUYDQWV DUH VLJQLILHG E\ WKH VL[WK KRXVH   7KDWWKH3K\VLFLDQPD\JDLQFUHGLWE\WKH3DWLHQW   

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



&+$3;92IEX\LQJRI%LUGVDQGOHWWLQJWKHPIO\WRUHWXUQDJDLQ

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

  2IEX\LQJ+DZNVRU%LUGVRI3UH\   2IKRXVHKROGRUGRPHVWLFELUGV   2I&RFNVRIWKH*DPH 

 

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





&+$3;9,2IEX\LQJIRXUIRRWHGEHDVWV

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

  2I3LJHRQV   2IOHWWLQJWKHPDEURDGWREUHHGDJDLQ   2I:DWHUIRZO  2IEX\LQJIRXUIRRWHGEHDVWV   *UHDWFDWWOH   6PDOOFDWWOH   

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





&+$3;9,,2IEULQJLQJXS'RJVRU7DPLQJRIVPDOO&DWWOH

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

  'RJVRUKRXQGV   5DFHKRUVHV  7KHRULJLQDOVHQVHRIWKHZRUGFDWWOHUHODWHGWRPRYHDEOHSURSHUW\DQGODWHU EHFDPHSDUWLFXODUO\DVVRFLDWHGZLWKOLYHVWRFN$OWKRXJKIURPWKHPLGVL[WHH QWK FHQWXU\LWZDVXVHGLQLWVPRGHUQVHQVHLWDSSHDUVWKDW5DPHVH\XVHVLWWRGHVFULEH GRPHVWLFOLYHVWRFNDVWLOOFRPPRQXVDJHDWWKLVWLPH   2IWDPLQJRIFDWWOH   

0RRQWKH/RUGRIWKH$VFHQGDQWDQGWKH/RUGRIWKHVL[WKDQGLISRVVLEOH OHW WKHP EH LQ VRPH EHQHYROHQW FRQILJXUDWLRQ RI-XSLWHU RU 9HQXV DQG VR RUGHU\RXUWLPHDFFRUGLQJWRGLVFUHWLRQDQG\RXU5XOHV F 

 6(&7,219,,,&RQWDLQLQJ(OHFWLRQVDSSHUWDLQLQJWRWKHVHYHQWK +RXVH





&+$3,2I(OHFWLRQVDSSHUWDLQLQJWRWKHVLJQLILFDWLRQRIWKHVHYHQWK KRXVHDQGWRXFKLQJ0DUULDJH


 

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

7DXUXV IURP WKH ILUVW GHJUHH WR WKH WZHQWLHWK LV JRRG IURP WKH WZHQWLHWKWRWKHHQGEDG  7KHILUVWILIWHHQGHJUHHVRI*HPLQLDUHJRRGWKHODVWEDG  7KHZKROHVLJQRI/HRLVJRRGRQO\LWFDXVHVWKHRQHWRGHFHLYHWKH RWKHURIWKHLUVXEVWDQFH  9LUJRVLJQLILHVWKHZRPDQVKDOOVRRQORVHKHUKXVEDQGZKHUHIRUHLW PD\EHEHQHILFLDOWRKHUWKRXJKSHUQLFLRXVWRKLPZRPHQVHOGRPORYLQJ VRDIIHFWLRQDWHO\DVPHQ  7KH ILUVW ILIWHHQ GHJUHHV RI 6FRUSLR DUH JRRG WR 0DUU\ D 0DLG RU 9LUJLQ LQ IRU WKDW LW GHQRWHV VKHZLOO EH REHGLHQW JRRG DQG FKDVWH DOVR ORYLQJ WR KHU KXVEDQG EXW WKH ODWWHU ILIWHHQ GHJUHHV DUH DOWRJHWKHU WR EH UHMHFWHGLQWKDWLWFDXVHVWKH:RPDQWREHRIGLVSRVLWLRQTXLWHFRQWUDU\YL] OHZGD%UDZOHU3HUILGLRXVLQFRQVWDQWHQYLRXVPDOLFLRXVDQGGLVREHGLHQW F  6DJLWWDULXVLVLQGLIIHUHQWDVVRPHRIWKH$QFLHQWVKROG,IRUP\SDUW FDQQRWDJUHHWRUHMHFWLW  7KHILUVWWHQGHJUHHVRI&DSULFRUQDUHWREHQHJOHFWHG\HWWKHRWKHU WZRODVWIDFHVDUHJRRGDQGVLJQLI\WKHZRPDQVKDOOEHORYLQJDQGWUDFWDEOH WR WKH ZLOO DQG GHVLUH RI WKH PDQ DQG WKH\ DUH EHWWHU LQ D :LGRZ WKHQ D 0DLGH[FHSWLQJWKH\FDXVHEXWIHZFKLOGUHQ  1RWH WKDW WKH0RRQ LQ$TXDULXV DW WKH WLPHRI0DUULDJHFDXVHVWKH ZRPDQWREHRIDPDQO\VSLULWDQGGLVREHGLHQWWRKHUKXVEDQG  3LVFHVLVJRRGLQWKDWLWGHQRWHVWKHZRPDQWREHORYLQJDQGMXVW\HW LWZLOODOVRFDXVHKHUWREHDGGLFWHGWRWZDWOLQJDQGSUDWLQJZKLFKZLOOQRZ DQGWKHQOHVVHQWKHPDQVORYHWRZDUGVKHU  8QGHUVWDQGWKLVZKHQWKH0RRQLVLQDQ\RIWKHVHVLJQVRUWKH&XVS RIWKH$VFHQGDQWRULI9HQXVEHWKHUHLQ\HWWKHLUVLJQLILFDWLRQVZLOOEHPRVW PDQLIHVWWKH0RRQEHLQJWKHUHLQ 
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

1RWHDOVRWKDWZKHQWKHGDQGJDUHLQPRYHDEOHVLJQVWKHMR\ DQGPLUWKEHWZHHQWKRVHWKHQPDUULHGZLOOQRWEHRIORQJFRQWLQXDQFH$QG WKXV PXFK IRU WKH HOHFWLQJ D WLPH IRU PDUULDJH OHW XV WKHUHIRUH QRZ SURFHHG 







&+$3,,2I9HQHUHDOVSRUWV

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−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



  7KHMR\QRWRIORQJFRQWLQXDQFH   2IRUSHUWDLQLQJWRVH[XDOGHVLUHRULQWHUFRXUVH+RZHYHU WKLVLVDSXQRI 5DPHVH\·VDV´YHQHU\µ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



&+$3,,,2I3DUWQHUVKLSRU$JUHHPHQWVRUWKLQJVEHWZHHQWZR

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

  7KHVLJQLILFDWRUVDUHFKLHIO\VRWREHUHJDUGHG   7RNQRZWKHWUXHVLJQLILFDWRUV   5XOHVIRUGLVSRVLQJWKHIDFHRI+HDYHQ   

KXQGUHG DIWHU PH VKRXOG VR PDQ\ HQGHDYRXU WR LQVWUXFW \RX  FDQ ZHOO GLUHFW \RX EXW FRQWUDULZLVH ZKHQ \RX KDYH VHDUFKHG WKH GHSWK WKHUHRI \RX ZLOW VRRQ EH DEOH WR ZULWH DV DXWKHQWLFDOO\ DQG WUXO\ DV DQ\ WKDW KDV JRQHEHIRUH\RX F 





&+$3,92IJRLQJWR:DURUEHJLQQLQJRI'LIIHUHQFHVDQG'XHOV 4XDUUHOV/DZ6XLWV&RQWURYHUVLHVDQGWKHOLNH

/HDUQ \RX WKLV WKDW WKH $VFHQGDQW DQG LWV /RUG DQG WKH 3ODQHW RU 3ODQHWVWKHUHLQRULQ&RQMXQFWLRQRU&RQILJXUDWLRQZLWKWKH/RUGWKHUHRIRU LQ DVSHFW ZLWK LW DUH WR VLJQLI\ KLP RU WKHP WKDW EHJLQ WKH TXDUUHO RU FRQWURYHUV\WKHVHYHQWK/RUGWKHUHRIDQG3ODQHWRU3ODQHWVWKHUHLQDQG LQDVSHFWWKHUHZLWKRUZLWKWKH/RUGWKHUHRIRU&RQMXQFWLRQZLWKKLPWKH RWKHURUFRQWUDU\SDUW\   +DYLQJ WKXV D WUXH NQRZOHGJH RI \RXU 6LJQLILFDWRUV \RX PD\ HDVLO\ IUDPH \RXU EXVLQHVV WR WKH EHVW DV LI \RX ZRXOG KDYH WKH SDUW\ RU SDUWLHV VLJQLILHG E\ WKH $VFHQGDQWWRRYHUFRPHRUWRKDYHWKHEHWWHULWLV JRRGWRSODFHWKH$VFHQGDQWLQRQHRIWKHKRXVHVRIWKH6XSHULRU3ODQHWV YL] 6DWXUQ -XSLWHU RU 0DUV EXW QRWH WKDW LQ WKLV PDWWHU 0DUV LV WR EH SUHIHUUHG EHIRUH WKH UHVW DQG RI WKLV KRXVH VRPH RI WKH 6DJHV KDYH VDLG 6FRUSLREHFDXVHLWLVDIL[HGVLJQ,FRQFHLYHLWEHLQJDVLJQRIGHFHLWLWPD\ KHOSE\SROLF\RUVOLJKWWRRYHUPDWFKWKHFRQWUDU\SDUW\DQGWKHUHIRUHWREH SUHIHUUHGEHIRUH$ULHVZKRWKRXJKLWEHDVLJQILHU\\HWLVLWPRYHDEOHDQG XQVWDEOH KRZHYHU EH VXUH LI SRVVLEOH DW WKH WLPH RI WKH ILUVW RQVHW RU EHJLQQLQJ RI WKH TXDUUHO \RX PDNH WKH $VFHQGDQWV /RUG GLVSRVH RI WKH /RUG RI WKH VHYHQWK RU RWKHUZLVH EH PRUH HVVHQWLDOO\ IRUWLILHG DQG GLJQLILHGDQGDOVRHOHYDWHGDERYHKLPLQWKHILJXUHRIKHDYHQDWWKDWWLPH IRUE\KRZPXFKWKHPRUH\RXU6LJQLILFDWRUEHVWURQJDQGZHOOGLJQLILHG E\VRPXFKWKHPRUHVKDOOKHEHDEOHWRGHDOZLWKRURYHUFRPHKLVHQHP\ XQGHUVWDQG WKH VDPH E\ WKH /RUG RI WKH VHYHQWK LI \RX ZRXOG KDYH WKH SDUW\RUSDUWLHVWKHUHE\VLJQLILHGWRKDYHWKHEHWWHU$QGQRWHWKDWHLWKHULQ VLQJOHGXHOVRSHQZDUVEHWZHHQ$UPLHVGRPHVWLFRUIRUHLJQRU/DZVXLWV RUDQ\RWKHU&RQWURYHUV\WKHVDPHUXOHVZLOOVHUYHKDYLQJDVSHFLDOUHJDUG WRWKHWUXH6LJQLILFDWRUV  7KHVHUXOHVPLJKWVXIILFLHQWO\VHUYHIRUDQ\EXVLQHVVRIWKLVQDWXUH EXWVLQFHWKH$QFLHQWVKDYHKHUHRQEHHQVRPHZKDWODUJH,KROGLWQRWILWIRU PH WR EXU\ WKHLU VD\LQJV LQ VLOHQFH WKH\ PD\ YHU\ ZHOO VHUYH ERWK WR FRQILUP\RXUMXGJHPHQWDQGHQDEOH\RXWRRUGHULWDFFRUGLQJWRWKHPRVW UDWLRQDOUXOHVZKLFK\RXPD\DFFRUGLQJWRGLVFUHWLRQSLFNRXWWKHUHRI   /HWWKHQWKH/RUGRIWKH$VFHQGDQWLIWKDWSDUW\\RXZRXOGKDYH YLFWRULRXV LI LW EH \RXU 6LJQLILFDWRU DQG VR FRQWUDULZLVH WKH /RUG RI WKH 

  7RNQRZWKHWUXH6LJQLILFDWRUV   5XOHVLQGLVSRVLQJWKH$VFHQGDQWDQGLWV/RUGEHLQJVLJQLILFDWRUHLWKHUIRUGXHOVRSHQ ZDUVRUODZVXLWVRUDQ\RWKHUFRQWURYHUV\   2WKHUUXOHVLQ GLVSRVLQJWKH/RUGRIWKH$VFHQGDQWRUFKLHI6LJQLILFDWRUV   

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
  2I0HUFXU\WKH0RRQDQGLWV'LVSRVLWRU   7KLVPD\ ,YHU\ZHOOSXWLQIRUIHZJRGO\PHQZLOOXVHVWULIHRUGHEDWH   7KH$XWKRUVMXGJPHQWRIZDUEHWZHHQWZR.LQJVRU1DWLRQV   2ISDUWRI:DUDQGSDUWRI9LFWRU\   2IWKH0RRQLQ7DXUXV   2I*HPLQLRU&DQFHU   

%HJLQQRTXDUUHOZDURUFRQWURYHUV\QHLWKHULQYDGH\RXUHQHP\ WKH 0RRQ EHLQJ LQ 9LUJR RU &DSULFRUQ EXW ZKHQ WKH 0RRQ LV DVVLVWHG DQG DVSHFWHGE\WKH)RUWXQHVDQGIUHHIURPWKHLPSHGLPHQWVDQGDIIOLFWLRQVRI WKH0DOHYROHQWV\RXPD\LQYDGHRUEHJLQDQ\TXDUUHORUFRQWURYHUV\ZLWK DVVXUDQFHRIYLFWRU\DQGVXFFHVVIRUDFFRUGLQJWRWKHRSLQLRQRIWKH6DJHV WKLV &RQILJXUDWLRQ FDXVHV DVVLVWDQFH DQG VWUHQJWK WR WKH EHJLQQHU DQG GHELOLW\DQGPLVFKLHIWRWKHRWKHU  0DQ\$XWKRUVKDYHREVHUYHGWRHOHFWWKHWLPHRIEHJLQQLQJWRZDU RU LQYDGH DQ\ SODFH 1DWLRQ RU .LQJGRP LQ WKH GD\ DQG KRXU RI-XSLWHU 9HQXV RU WKH 6XQ DQG WR PDNH WKHLU $VFHQGDQW IUHH IURP DOO LPSHGLPHQW DQG DIIOLFWLRQ DQG LQ RQH RI WKH VLJQV RI ULJKW DVFHQVLRQV REOLTXH WKH\ ZKROO\ UHMHFW LQ WKLV PDWWHU ZKDW DUH REOLTXH VLJQV DQG VLJQV RI ULJKW DVFHQVLRQV\RXKDVWKDGDOUHDG\WDXJKW\RXLQWKH&KDSWHURIRXUVHFRQG 7UHDWLVHLQWKLVZRUNRU,QWURGXFWLRQWRWKH-XGJHPHQWRIWKH6WDUVEXWLI\RX KDVWVHULRXVO\ZHLJKHGWKHIRUHJRLQJUXOHV\RXZLOWILQGWKLVRIVPDOORUQR XVHRULPSRUWDQFH   .QRZWKDW3DUWRI)RUWXQHLI\RXGHVLUHVXFFHVVWRWKHEHJLQQHUDV KDV EHHQ VDLG  RU RWKHU  RXJKW WR EH SODFHG LQ WKHLU &RQILQHV RU +RXVHV DSSHUWDLQLQJWRWKHPDVLIIRUWKHEHJLQQHUOHWLWEHLQWKH$VFHQGDQWWHQWK VHFRQGRUHOHYHQWKLIIRUWKHRWKHULQWKHVHYHQWKIRXUWKHLJKWKRUILIWK 8QGHUVWDQG WKH VDPH LQ /DZVXLWV WKH $VFHQGDQW LV VWLOO IRU WKH 3ODLQWLII DQG WKH VHYHQWK IRU WKH 'HIHQGDQW EXW UHPHPEHU WKDW LQ DQ\ RI WKHVH EXVLQHVVHV3DUWRI)RUWXQHEHIUHHIURPLPSHGLPHQWHVSHFLDOO\RIWKH/RUGV RI WKH VHYHQWK HLJKWK IRXUWK RU ILIWK EXW LI SRVVLEOH DVVLVWHG E\ WKH )RUWXQHV   2EVHUYHWKHVDPHUXOHVLQGLVSRVLQJRIWKH/RUGRI3DUWRI)RUWXQH IRU WKH 6DJHV KDYH VDLG WKDW SDUW\ LQ ZKRVH &RQILQHV WKH\ DUH ZHOO GLJQLILHGDQGORFDWHGVKDOODVVXUHGO\EHYLFWRULRXVDQGKDYHWKHGD\   0RYHDEOH VLJQV WR EH LQ WKH $VFHQGDQW DW WKH WLPH RIEHJLQQLQJ DQ\FRQWURYHUV\DUHWREHVKXQQHGHVSHFLDOO\$ULHV/LEUDDQG&DQFHUDQG RIWKHVH&DQFHULVWKHZRUVWIRUWKDWVKHLVDZDWHU\VLJQDQGWKH+RXVHRI WKH 0RRQ ZKLFK LV WKH ORZHVW 3ODQHW DQG WKH VHYHQWK WKHQ PXVW EH &DSULFRUQ ZKLFK LV WKH +RXVH RI6DWXUQ WKH KLJKHVW DQG PRVW VXSHULRU RI WKH3ODQHWVZKHUHIRUH&DSULFRUQLVWKHUDWKHUWREHFKRVHQRIWKHPRYHDEOH VLJQV\HWE\UHDVRQRIWKHLULQVWDELOLW\DQGZDYHULQJLQFOLQDWLRQWKH\DUHLQ P\RSLQLRQWREHODLGDVLGHLQZRUNVRIWKLVQDWXUH  



  2IEHJLQQLQJRITXDUUHOVODZVXLWVZDUVRU FRQWURYHUVLHV   2I3DUWRI)RUWXQHLQZDUVRUTXDUUHOVODZVXLWVRUFRQWURYHUVLHV   2IWKHGLVSRVHURI3DUWRI)RUWXQH   2IPRYHDEOHVLJQV   



&+$392IPDNLQJRI3HDFHVXSSUHVVLQJRUHQFRXQWHULQJRI5HEHOV DQGVWRUPLQJRI&DVWOHVDQG7RZQ

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

  2IPDNLQJRISHDFHRUDJUHHPHQW   2IVXSSUHVVLQJRU,QYDGLQJ5HEHOV   $JRRGWLPHWRVHWRXWDJDLQVWDQ(QHP\   7RVWRUPRUGHPROLVK&DVWOHVDQGVWURQJKROGV   

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





&+$39,2IEX\LQJRI$UPVDQGSUHSDULQJRI,QVWUXPHQWVRI:DU DQG6KLSVRU*DOOH\V

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

  2IEX\LQJRI$UPVGHIHQVLYHRURIIHQVLYH   2ISUHSDULQJ$UPV   

FRQGXFHWRWKHEXLOGLQJRI6KLSVDQG*DOOH\VZKHUHIRUH,VKDOOLQWKLVSODFH UHIHU\RXWKHUHXQWR  



&+$39,,2IVHHNLQJRI)XJLWLYHVDQGH[DPLQLQJRI7KLHYHVDQG 0DOHIDFWRUV

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

&+$39,,,7RNQRZWKH6XEMHFWDQGVFRSHRIWKH:KLVSHULQJVRU &ODQGHVWLQH3UDFWLFHVRIDQ\WZRDQGRISOD\LQJDW&KHVVRUDQ\RWKHU VLWWLQJ*DPH WRZLQ



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

  $QJHU   



&+$3,;2I+XQWLQJ)RZOLQJDQG)LVKLQJ

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

  2IKXQWLQJRI%HDVWVHLWKHUZLOGRUWDPH   2I)RZOLQJRUWDNLQJRI%LUGVRQWKHODQG   $VHWWHUDGRJWUDLQHGWRILQGDQGVWDUWELUGVIRUVSRUWVPHQ   ,QWKHDLU  ,QWKHZDWHU  

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

  2IILVKLQJLQ6HD5LYHUVRU3RROV   2IWHDFKLQJRI'RJVWRKXQW 

 

6(&7,21,;&RQWDLQLQJ(OHFWLRQVDSSHUWDLQLQJWRWKHVLJQLILFDWLRQ RIWKHHLJKWK+RXVH 

&+$3,2IPDNLQJRI:LOOV

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



&+$3,,2IWKH+HULWDJHVRIWKH'HDG

'R\RXEHVXUHKHUHLQWRSODFHRQHRIWKHKRXVHVRIHLWKHU-XSLWHURU9HQXVLQ WKHHLJKWKKRXVHRUHOVHIRUWLI\WKHFXVSRIWKHHLJKWKDQGWKH/RUGWKHUHRI DQG SODFH WKHP LQ 6H[WLOH RU 7ULQH RU HLWKHU -XSLWHU RU 9HQXV RU PDNH WKH GHJUHHVRIWKHFXVSRIWKHHLJKWKDQGWKH/RUGWKHUHRIWKHWHUPVRI-XSLWHU RU 9HQXV DQG PDNH WKH VHFRQG DQG LWV /RUG VWURQJ DQG IUHH IURP DOO PDQQHU RI LPSHGLPHQW DQG LI SRVVLEOH LQ JRRG DVSHFW RI WKH )RUWXQHV )RUWLI\ DOVR WKH0RRQ DQG OHW KHU ORYLQJO\ EHKROG WKHHLJKWKKRXVHRULWV /RUGDQGLISRVVLEOHIRUWLI\DOVRWKH$VFHQGDQWDQGLWV/RUGDQGSODFHWKH /RUGRIWKHHLJKWKLQUHFHSWLRQZLWKWKH/RUGRIWKHVHFRQGRU$VFHQGDQW

 

DQGLI\RXFDQOHWKLPEHLQWKHVHFRQGDQGWKH/RUGRIWKHVHFRQGLQWKH HLJKWK F 

 6(&7,21;&RQWDLQLQJWKH(OHFWLRQVRIWKHQLQWK+RXVHRI+HDYHQ





&+$3,2IWKHUHWXUQLQJRIVXFKDVDUHDEVHQWDQGRIJRLQJRI MRXUQH\VDQGHQWHULQJLQWRDQ\SODFH

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





&+$3,,2IEXLOGLQJRI6KLSVDQGWDOOLHVDQGRIODXQFKLQJWKHP DQGRIYR\DJLQJE\6HD

7KH ILUVW WKLQJ ZH DUH WR SURYLGH IRU DQ\ YR\DJH DW 6HD LV D %DUN *DOOH\ 6KLSRUVXFKOLNH9HVVHOZKHUHIRUHLWVHHPVUHTXLVLWHXQWRPH,KHUHVKRZD ILW WLPH IRU PDNLQJ RI VXFK &RPPRGLWLHV DQG WKHQ ZH VKDOO FRPH WR WKH WLPH RI 9R\DJLQJ 6RPH RI WKH $QFLHQWV KDYH SODFHG WKLV (OHFWLRQ LQ WKH IRXUWK+RXVHEXWEHFDXVH9R\DJHVDUHXQGHUWKHVLJQLILFDWLRQRIWKHQLQWK +RXVHDQGWKH\FDQQRWEHDFFRPSOLVKHGZLWKRXW6KLSV,WKRXJKWLWPRUH FRQYHQLHQWWRSODFHLWLQWKLV+RXVH    7RUHWXUQTXLFNO\  7RPDNHKLV(OHFWLRQVXLWDEOHWRKLVEXVLQHVV   

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

 

$OVRLIWKHGEHQRWLQ−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



&+$3,,,2IOHDUQLQJRI6FLHQFHVDQGRI6LQJLQJDQG0XVLF

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



  2I0XVLF  2I6LQJLQJ  0XVLFVXQJIURPSULFNHGZULWWHQ QRWHVDVFRPSDUHGWRWKDWVXQJIURP PHPRU\   



6(&7,21;,&RQWDLQLQJ(OHFWLRQVDSSHUWDLQLQJWRWKHVLJQLILFDWLRQ RIWKHWHQWK+RXVH



&+$3,2IHOHFWLQJRI.LQJVDQG1REOHVDQGRIWKHLULQVWDOOLQJDQG EHJLQQLQJWKHLU5XOHRU*RYHUQPHQW

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

  2IHOHFWLQJ.LQJVDQG*RYHUQRUV   2I&RURQDWLRQVDQG(QVWDOOLQJV 

 

/RUGRIWKHWHQWKDQGWKH/RUGRIWKHIRXUWKIUHHIURPLPSHGLPHQWEXWOHW KLP QRW EHKROGWKH$VFHQGDQWQRULWV/RUGDQGOHWVRPHRIWKH)RUWXQHV EHKROGWKHIRXUWK+RXVHRUWHQWKRUDWOHDVWRQHRIWKHPLISRVVLEOH  $QG WKXV PD\ \RX MXGJH RI HOHFWLQJ RI RWKHU LQIHULRU 0DJLVWUDWHV ZKDWVRHYHU E\ GLVWLQJXLVKLQJ WKHLU VHYHUDO VLJQLILFDWRUV DQG GLVSRVLQJRI WKHP DFFRUGLQJ XQWR WKHVH UXOHV 0XWDWLV PXWDQGLV ZKHUHIRUH LW ZHUH QHHGOHVVKHUHIXUWKHUWRHQODUJH 





&+$3,,2IREWDLQLQJIDYRXURI.LQJVDQGJUHDWPHQ-XVWLFHRQ (QHPLHVDQG3DUGRQVDOVRRIJRLQJRI3URJUHVVZLWKWKH.LQJRUDQ\ RWKHU*UDQGHH

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

  2IREWDLQLQJIDYRXURINLQJVDQG*UDQGHHV   2IREWDLQLQJ-XVWLFH RU$VVLVWDQFHIURPWKH.LQJ   2IREWDLQLQJRISDUGRQ   

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





&+$3,,,2IOHDUQLQJDQ\$UWRU2FFXSDWLRQ

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

  2IJRLQJRISURJUHVVZLWKWKH.LQJRUDQ\RWKHU*UDQGHH   2IOHDUQLQJRI7UDGHVRURWKHU2FFXSDWLRQV   

6(&7,21;,,&RQWDLQLQJVXFK(OHFWLRQVDVDUHXQGHUWKH VLJQLILFDWLRQRIWKHHOHYHQWK+RXVHRI+HDYHQ



&+$3,2IDFFRPSOLVKLQJDQ\WKLQJKRSHGIRUDQGRIJDLQLQJDJRRG UHSXWHDQGWKHORYHRIIULHQGV

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



&+$3,,2IREWDLQLQJRI3URPLVHVDQG5HTXHVWV

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
 6(&7,21;,,,&RPSUHKHQGLQJWKH(OHFWLRQVRIWKH7ZHOIWK+RXVH 



&+$3,2I)UHHLQJRI3ULVRQHUVDQG&DSWLYHV

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



&+$3,,2I%X\LQJDQG5LGLQJRI+RUVHV


 

$6752/2*,$081'$ 25 $6752/2*<,QLW V3XULW\ %HLQJ$ 6KRUWEXW&RPSHQGLRXV ,QWURGXFWLRQ 7RWKH-XGJLQJRIWKH $QQXDORU
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

%\:,//,$05$0(6(<*HQW 6WXGHQWLQ$VWURORJ\3K\VLFDQGWKHPRVW+HDYHQO\DQG6XEOLPH6FLHQFHV  7HPSRUD0XWDQWXUQRV 0XWDPXULQLOOLV  /21'213ULQWHGE\5:

 

+2125$7,66,02$748(,//8675,66,02'20,12 1210,1869,5787(68$48$0*(1(5,663/(1'25( '20,1202817$*8(%(57<&20,7,'(/,1'6(<'20,12 '(:,//28*+%<'((5(6%<(7727,86$1*/,$6835(02 &$0(5$5,2  6DOXWHPLQ3HUSHWXXP



 '20,12682 08/7,6120,1,%862%6(59$1'2 +$1&68$0 $6752/2*,$0 081'$0  68%0,66('(',&$7 :LOOKHOPXV5DPHVHXV

 

727+(5LJKW+RQRXUDEOHDQGWUXO\1REOH 0RQWDJXH%HUW\ (DUORI/LQGVH\/RUG :LOORXJKE\RI(UHVE\DQG /RUG+LJK&KDPEHUODLQ RI (QJODQG

0\/RUG 'LGQRW\RXU+RQRXU·V0HULWVFODLPWKLVIRXUWKDQGFKLHI3DUWRIP\ /DERXUVDV
3+<6,&6PDNHDFFRUGLQJWR$ULVWRWOH3K\V&KDSEXWRQHHQWLUH6FLHQFH IRU KH WKURXJKRXW DOO KLV ZRUNV LQGLIIHUHQWO\ XVHV WKH 1DPH RI $6752/2*(5 DQG $6752120(5 DQG $6752/2*(5 DQG 3+,/2623+(5 IRU RQH DQG WKH VDPH DQG DPRQJVW DOO $QFLHQW DQG /HDUQHG:ULWHUV$VWURORJ\DQG$VWURQRP\KDYHEHHQUHFHLYHGIRURQHDQG WKHVDPH6FLHQFHWKRXJKGLVWLQFWSDUWVRUSURSHUWLHVDVKDVEHHQKLQWHGDW LQWKHILUVW%RRNRIWKLV9ROXPHDQGWKH&KDSWHU  ,WFRQWDLQVIRXU6HFWLRQVWKHWKUHHILUVWWUHDWLQJRIWKH5HYROXWLRQVRI WKH
 

 

7RWKH6WXGLRXV5HDGHU

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
 

$6752/2*,$081'$ 

25  3XUH$VWURORJ\  %HLQJ  $Q,QWURGXFWLRQWRWKH-XGJHPHQWRIWKH6WDUV 

7RXFKLQJDOOJHQHUDO$FFLGHQWVDQG(YHQWVLQWKLV (OHPHQWDU\:RUOGSRUWHQGHGE\WKH5HYROXWLRQV RIWKH6XQ(FOLSVHV&RPHWVDQG*UHDW&RQMXQFWLRQV LQD1DWXUDOZD\DQGFRXUVHRIWKH*RYHUQPHQW RIWKH8QLYHUVH  



6(&7,21,&RQWDLQLQJWKH*URXQGZRUNRI5HYROXWLRQV FRQVLGHUDWLRQVEHIRUH-XGJHPHQWDQGWKHWUXH6LJQLILFDWRUVRIVXFK WKLQJVDVDUHQHFHVVDU\WREHMXGJHGRILQWKLVPDQQHURI:RUN 

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



&+$3,6KRZLQJWKH*URXQGZRUNRQZKLFK$VWURORJLFDO-XGJHPHQWV IRUWKHMXGJLQJRI5HYROXWLRQVDUHWREHEXLOWDQGKRZPDQ\6FKHPHV RU)LJXUHVRI+HDYHQRXJKWWREHHUHFWHGIRUWKLV:RUN



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


%XWLI\RXUVLJQDVFHQGLQJEHIL[HGWKHQZLOOWKDWILJXUHVHUYHIRU DOOWKDW5HYROXWLRQRUWRWKHHQGRIWKH\HDUYL]\RXPD\WKHUHE\ XQGHUWDNHWRSUHGLFWRUDFTXDLQW\RXUVHOIZLWKDOOPDWWHUVVLJQLILHGWKHUHE\ HYHQWLOOWKHQH[WLQJUHVVZLWKRXWHUHFWLQJDQ\ILJXUHRIWKH6XQVLQJUHVV LQWRWKHRWKHUSRLQWV  7KXVPXFKIRU\RXUIRXQGDWLRQDQG3ODWIRUPYL]WKH6FKHPHVEXW ILUVWQRZEHIRUH\RXOD\RQHVWRQHOHWPHDGYLVH\RXWRDFTXDLQW\RXUVHOI ZHOO ZLWK WKHVH IROORZLQJ QHFHVVDU\ FRQVLGHUDWLRQV DQG WKHQ PD\ \RX VDIHO\DQGZLWKPRUHMXGJHPHQWJRWKURXJKZLWK\RXUZRUN  



&+$3,,&RQWDLQLQJVRPHQHFHVVDU\FRQVLGHUDWLRQVEHIRUH-XGJHPHQW



/RRNWKDW\RXFDQUHDGLO\DQGH[DFWO\GLVWLQJXLVKRI\RXUWUXHVLJQLILFDWRUV DVZKLFK+RXVHDQG3ODQHWGHQRWHVWKH.LQJZKLFKWKH3HRSOHZKLFKWKHLU $VVLVWDQWV DQG ZKLFK WKHLU (QHPLHV F DQG IURP ZKHQFH \RX DUH WR LQTXLUHRIWKHIHUWLOLW\DQGVWHULOLW\RIWKH(DUWK:DUVRU3HDFHRUDQ\RWKHU $FFLGHQW RWKHUZLVH \RX VKDOO QHYHU EH DEOH WR FRPH WR DQ\ SHUIHFWLRQ LQ WKLVPRVW'LYLQH6FLHQFH  (YHU EH VXUH \RX ZHLJK ZHOO WKH )RUWLWXGHV DQG 'HELOLWLHV RI \RXU 6LJQLILFDWRUVDVKRZWKH\DUHHVVHQWLDOO\DQGDFFLGHQWDOO\GLJQLILHGZKLFK \RXDUHVXIILFLHQWO\WDXJKWLQWKHHLJKW&KDSWHURIWKH6HFRQG7UHDWLVH KRZ ORFDWHG LQ WKH )LJXUH RI +HDYHQV DQG KRZ $VSHFWHG EHQHYROHQWO\ RU PDOHYROHQWO\E\WKH)RUWXQHVRU,QIRUWXQHVDQGVRMXGJHDFFRUGLQJWRWKH 1DWXUHRIWKH3ODQHWDIIOLFWLQJRUDVVLVWLQJ\RXU6LJQLILFDWRUJRRGRUEDGDV WKHVLJQLILFDWLRQDQGQDWXUHRIWKH$VSHFW3ODQHW6LJQDQG+RXVHZKHUHLQ KHLVGHQRWHVDQGWKHVLJQLILFDWLRQRIWKH3ODQHWWRZKLFKKHWUDQVIHUVKLV OLJKW   'R QRW FRQFOXGH 6DWXUQ DQG 0DUV DOZD\V 0DOHYROHQWV DQG ,QIRUWXQHVDQG-XSLWHUDQG9HQXVHYHU)RUWXQHVDQG'HQRWHUVRIJRRGIRU DVLWPD\KDSSHQWKH\PD\EHFRQWUDU\WRWKLVJHQHUDODQGVLPSOHRSLQLRQ  )RUWXQHV DQG ,QIRUWXQHV DV WKH\ PD\ EH SRVLWHG LQ +RXVHV DQG EH 6LJQLILFDWRUV DV \RX KDYH EHHQ DOUHDG\ VKRZQ LQ WKH ILUVW &KDSWHU RI WKH ILUVW6HFWLRQRIRXU,QWURGXFWLRQWR(OHFWLRQV   $V IRU H[DPSOH LQ WKH 6XQV LQJUHVV LQWR $ULHV , KDYH /LEUD DVFHQGLQJRU$TXDULXVRU&DSULFRUQDQG6DWXUQORFDWHGWKHUHLQ,PXVWQRW KHUHE\EHFDXVH6DWXUQLV1DWXUDOO\HYLOMXGJHWKHFRQGLWLRQDQGVWDWHRIWKH 3HRSOHVLJQLILHGE\WKH$VFHQGDQWWREHHYLODQGXQIRUWXQDWHWKLV\HDUEXW FRQWUDU\ZLVH RWKHU WHVWLPRQLHV FRQFXUULQJ  WKH\ ZLOO EH LQ D PRVW SURVSHURXVDQGJDOODQWFRQGLWLRQ    ,ILWEHIL[HGWKDWDORQHLVVXIILFLHQW   6DQGKQRWDOZD\VHYLOQHLWKHU MDQGJHYHUJRRG  7KHYDQLW\RIWKHRSLQLRQWKDW 6DQGKDUHDOZD\VEDGDQG MDQGJJRRG  

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





&+$3,,,6KRZLQJZKLFKDUHWKH6LJQLILFDWRUVRIWKH.LQJ3HRSOH WKHLU(QHPLHVDQG$VVLVWDQWVLQDQ\5HYROXWLRQRIWKH\HDUVRIWKH :RUOG

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







&+$3,92IWKH6LJQLILFDWRUVRI5LFKDQG1REOHPHQWKH.LQJV 6WDQGDUGRU$UPRXU%HDUHUDOVR&OHUJ\PHQDQGRI6WXGHQWV 0HUFKDQWV/DZ\HUVDQG:RPHQLQJHQHUDODOVR)U\HUVDQG0RQNV DQGWKHVHDFFRUGLQJWRWKHVLJQLILFDWLRQVRIWKH3ODQHWV

,VKDOOKHUHRQO\JLYH\RXWKHJHQHUDO6LJQLILFDWRUVRIWKHVHDFFRUGLQJWRWKH $QFLHQWV DV EULHI DV PD\ EH WKDW , PD\ SURFHHG WR WKH VHFRQG 6HFWLRQ KDYLQJDWODUJHVSRNHQRIWKHPDOUHDG\LQWKHVHFRQG%RRN    7KHWUXHVLJQLILFDWRUVRI.LQJVDQG5XOHUVDIWHUWKHRSLQLRQRIWKH$XWKRU   7KHWUXHVLJQLILFDWRUVRIWKHSHRSOHRIDQ\1DWLRQ LQDQ\UHYROXWLRQRIWKH\HDUVRIWKH :RUOG  2IWKHHQHPLHVRI.LQJDQG3HRSOHLQDQ\5HYROXWLRQ   2IWKHLUDVVLVWDQFH F   

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



 







6(&7,21,,6KRZLQJWKHVWDWHDQGFRQGLWLRQRIWKH.LQJRU5XOHUV DQGWKHLUFRQWLQXDWLRQDQGGXUDELOLW\LQDQ\5HYROXWLRQDVDOVRWKH FRQGLWLRQRIWKH3HRSOHIURPWKHSRVLWLRQDQGIRUWLWXGHVRIWKHLU VLJQLILFDWRUV$OVRKRZWRNQRZWKH/RUGRIWKH\HDULQDQ\5HYROXWLRQ RIWKH\HDUVRIWKH:RUOGDQGWKHVLJQLILFDWLRQVWKHUHRILQWKHWZHOYH +RXVHV6LJQVDQG$VSHFWVRIWKH3ODQHWVDOVRRIWKHVLJQLILFDWLRQVRI WKH+HDGDQG7DLORIWKH'UDJRQLQDQ\RIWKHWZHOYH+RXVHV &+$3,2IWKHVWDWHRUFRQGLWLRQRIWKH.LQJRUFKLHI5XOHUVDQG 3HRSOHLQDQ\$QQXDO5HYROXWLRQ

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

RU DQ\ $VSHFW HVSHFLDOO\ LI KH EH LQIRUWXQDWHO\ SODFHG LQ WKH WLPH RI KLV 1DWLYLW\RU&RURQDWLRQ  6R OLNHZLVH ZKHQ WKH /RUG RI WKH \HDU LV LQ &RPEXVWLRQ LQ WKH 7HQWK WKLV GDQJHU LV WKUHDWHQHG KLP LQ KLV RZQ 'RPLQLRQV EXW LI KH EH WKXV DIIOLFWHG LQ WKH )RXUWK RU 6HYHQWK WKH GDQJHU LV WR EH IHDUHG DQG H[SHFWHG IURP VRPH FRPLQJ RXW RI WKRVH 5HJLRQV VLJQLILHG E\ WKH 6LJQ ZKHUHLQWKH/RUGRIWKH
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

LIKHEHIUHHWKHHYLOZLOOEHWKHOHVVHVSHFLDOO\LIKHEHLQKLVRZQ+RXVHRU ([DOWDWLRQRUWULSOLFLW\HVVHQWLDOO\ZHOOGLJQLILHG   1RZDVWRXFKLQJWKHVLJQLILFDWLRQVRIWKHLPSHGLWLRQRIWKH/RUG RIWKHWHQWKLQDQ\DQQXDO5HYROXWLRQDQGWKHQOHWXVSURFHHGWRWKHUXOHV RI WKH $QFLHQWV LQ MXGJLQJ WKH WUXH VWDWH DQG FRQGLWLRQ RI WKH &RPPRQ 3HRSOHLQDQ\5HJLRQE\DQ\5HYROXWLRQRIWKH\HDURYHUDQGDERYHZKDW KDVEHHQDOUHDG\VDLGIRUWKHEHWWHULOOXVWUDWLRQWKHUHRIWKDWVRWKH6WXGHQW PD\EHWKHEHWWHUDEOHWRUHWDLQDQGXQGHUVWDQGWKHUXOHVRI$UWDVDOVRWR MXGJHRIWKHVHPDWWHUVWKHPRUHDFFXUDWHO\ 




&+$3,,7HDFKLQJKRZWRMXGJHRIWKHSHUPDQHQF\RUGXUDELOLW\RI .LQJVRUVXFKDVDUHLQ$XWKRULW\E\DQ\5HYROXWLRQ

0XFKWLPHDQGSDSHUPLJKW,KHUHFRQVXPHLQGHOLYHULQJXQWR\RXDOOWKH ZD\V WKH /HDUQHG LQ IRUPHU DJHV KDYH VHWGRZQ IRU WKH MXGJLQJ RI WKLV PDWWHU EXW OHVW , WKHQ GHYLDWH IURP ERWK P\ LQWHQWLRQV DW WKLV WLPH DQG QDWXUDOLQFOLQDWLRQWRVKRUWGLVFRXUVHVDQGWURXEOHERWK\RXDQGP\VHOIWR   :KDWNLQJVDQG5XOHUVPD\H[SHFWZKHQWK HLUVLJQLILFDWRURU/RUGRIWKHWHQWK +RXVHRI +HDYHQLQDQ\5HYROXWLRQLVLPSHGLWHG   

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

  )URPZKHQFHMXGJPHQWLVWREHUHTXLUHGIRUWKHSUHGLFWLQJWKHGXUDELOLW\RIDQ\.LQJRU *RYHUQPHQW   

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





&+$3,,,6KRZLQJWKHVWDWHDQGFRQGLWLRQRIWKH&RPPRQ3HRSOHLQ DQ\5HJLRQE\DQ\5HYROXWLRQ

,QWKHILUVW&KDSWHURIWKLVVHFRQG6HFWLRQ,KDYHVXIILFLHQWO\VKRZQWKHZD\ DQG PDQQHU RI MXGJLQJ WKH FRQGLWLRQ DQG VWDWH RI WKH 3HRSOH \HW IRU WKH EHWWHU LOOXVWUDWLRQ WKHUHRI DV , KDYH VDLG  , VKDOO LQ WKLV PDQQHU IXUWKHU HQODUJHP\VHOIWKHUHRQ  7KH $VFHQGDQW /RUG WKHUHRI DQG WKH 3ODQHW WKHUHLQ SRVLWHG EXW PRUHHVSHFLDOO\WKH/RUGRIWKH$VFHQGDQWDQGWKH0RRQDUHVLJQLILFDWRUVRI WKH&RPPRQ3HRSOHRIDQ\1DWLRQ&RXQWU\RU.LQJGRPFRQFHUQLQJZKLFK  

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

WKDW5HYROXWLRQDOVRWKHLUPLVIRUWXQHLIDIIOLFWHGLPSHGLWHG F-XGJHWKH QDWXUH WKHUHRI IURP WKH QDWXUH RI WKH +RXVH 3ODQHW DIIOLFWLQJ DQG VLJQ ZKHUHLQ LW LV ZKHWKHU LW EH JRRG RU EDG DV \RX KDYH EHHQ DOUHDG\ VXIILFLHQWO\WDXJKWZKHUHIRUHLWZHUHQHHGOHVVDQGVXSHUIOXRXVKHUHWRUXQ RYHU WKH QDWXUH RI WKH 3ODQHWV IRUWXQDWH DQG XQIRUWXQDWH DIIOLFWLQJ RU DVVLVWLQJ\RXVLJQLILFDWRUDQGWKHQDWXUHRIWKH6LJQVDQG+RXVHVWKH\DUH LQIRUDQH[DPSOH 
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

&+$3,9+RZWRNQRZWKDW3ODQHWZKLFKLV/RUGRIWKH
 8VXDOO\ WKH $QFLHQWV KDYH IRXQG RXW WKH /RUG RI WKH \HDU E\ WKHVH 5XOHV IROORZLQJZKLFK,VKDOOFRUGLDOO\GHOLYHUXQWR\RXDQGWKDWZLWKDVPXFK SODLQQHVV DV , FDQ DQG P\ -XGJHPHQW ZKLFK RI WKHP VWDQGV ZLWK PRVW UHDVRQWREHIROORZHG  
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

&+$392IWKH6LJQLILFDWLRQVRIWKHVHYHQ&HOHVWLDO3ODQHWVZKHQDQ\ RIWKHPLV/RUGRIWKH
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

:KHQ -XSLWHU LV /RUG RI WKH \HDU DQG VWURQJ DQG ZHOO GLJQLILHG WKH.LQJVKDOOGR-XVWLFHDQGLWVKDOOEHKDSS\IRUWKRVHWKDWDUH1REOHPHQ -XGJHV &RXQFLOORUV RI WKH /DZ DQG PHQ RI DOO VRUWV RI 5HOLJLRXV 2UGHUV VKDOOEHLQDVXFFHVVIXOKDSS\SOHDVDQWDQGJRRGFRQGLWLRQDQGVKDOOOLYH SOHQWHRXVO\ DQG FRQWHQWHGO\ LQ KRQRXU DQG DOVR JUHDW HVWHHP DQG WKH 3HRSOHDOVRVKDOOEHLQDJRRGDQGSURVSHURXVFRQGLWLRQDQGVKDOOUHFHLYH JRRGIURPWKHLU.LQJDQG6XSHULRUVDQGWKH\IURPWKH3HRSOHDOVRLIWKH /RUGRIWKH$VFHQGDQWRIWKH0RRQEHLQUHFHSWLRQZLWKWKH6LJQLILFDWRURI WKH.LQJRU/RUGRIWKH\HDURUEHORFDWHGLQWKHPLGKHDYHQEXWLI-XSLWHU EHZHDNRUDIIOLFWHGMXGJHWKHFRQWUDU\WRDOOZKDW\RXKDYHKHDUGLQHYHU\ SDUWLFXODUZKLFK,RPLWWRUHKHDUVHIRUEUHYLWLHVVDNH   0DUVZKHQKHLV/RUGRIWKH\HDUVWURQJDQGZHOOSODFHGDOOVXFK DV EHORQJ WR $UPVDV6ROGLHUVDQGWKHOLNHVKDOOEHIRUWXQDWHDQGLQJRRG FRQGLWLRQDQGVKDOORYHUFRPHWKHLUHQHPLHVWKHUHVKDOOEHDOVRGXULQJWKDW 5HYROXWLRQ VXIILFLHQW DQG SOHQW\ RIUDLQDVVXFKWLPHVDQGQRRWKHU LWLV FRQYHQLHQW DQG UHTXLVLWH DQG WKH 3HRSOH VKDOOEHSURVSHURXVDQGKDSS\ EXW LI KH EH /RUG RI WKH \HDU DQG ZHDN F MXGJH WKH FRQWUDU\ DQG \RX PXVWUHPHPEHUVWLOOLQWKHMXGJLQJWKHJRRGRUHYLOSRUWHQGHGE\KLPDQG DOVR DOO WKHUHVW RI WKH SODQHWV LW VKDOO FKLHIO\ KDSSHQ LQ WKRVH SODFHV DQG 5HJLRQV VXEMHFW WR KLV RU WKHLU 'RPLQLRQ ZKLFK \RX KDYH EHHQ DW ODUJH VKRZQLQWKHVHFRQGRU,QWURGXFWRU\7UHDWLVH   ,ILQDQ\5HYROXWLRQ\RXILQGWKH6XQ/RUGRIWKH\HDUDQGZHOO GLJQLILHG WKH .LQJ DQG 1REOHV VKDOO H[FHHG DQG LQFUHDVH LQ JORU\ DQG UHQRZQ &RUQ %HDVWV DQG %LUGV VKDOO EH SOHQWLIXO WKH SHRSOH JHQHUDOO\ SURVSHURXVDQGVXFFHVVIXODQGDOOWKLQJVLQDJRRGFRQGLWLRQZKHUHRIWKH 6XQKDVDQ\VLJQLILFDWLRQLIZHDNMXGJHWKHFRQWUDU\   :KHQ\RXILQG9HQXV/DG\RIWKH\HDUDQGZHOODQGIRUWXQDWHO\ GLVSRVHGWKH\HDUZLOOEHVXFFHVVIXODQGDGYDQWDJHRXVXQWRZRPHQZKR VKDOOEHIUHHJHQHUDOO\IURP,QILUPLWLHVDQGPLVFKDQFHVWKH\VKDOOORYHDQG GHOLJKWWKHPVHOYHVLQWKHVRFLHW\DQGFRPSDQ\RIWKHLU+XVEDQGVVKDOOEH IUXLWIXOHDVLO\FRQFHLYHDQGEULQJIRUWKWKHLU&KLOGUHQWKH3HRSOHVKDOODOVR JHQHUDOO\WKULYHDQGEHSURVSHURXVVKDOOGHOLJKWWKHPVHOYHVLQ5HFUHDWLRQV VSRUWV IHDVWLQJV PLUWK DQG MROOLWLHV DQG DOO SOHDVXUH ZKDWVRHYHU WKH\ GHVLUH VKDOO IHDVW PDNH 0DUULDJHV DQG GHOLJKW WR JR QHDW DQG ILQH LQ DSSDUHOLIVKHEHZHDNDQGLPSHGLWHGVKHGHQRWHVWKHFRQWUDU\   0HUFXU\ VLJQLILHV ZKHQ KH LV /RUG RI WKH \HDU DQG VWURQJ WKDW 0HUFKDQWV7UDGHVPHQDQGDOOVXFKDVJLYHWKHLUPLQGVWR/HDUQLQJ$UWV DQG 6FLHQFHV VKDOO KDYH D VXFFHVVIXO \HDU F DQG LI ZHDN MXGJH WKH FRQWUDU\  

  MZKHQ/RUGRIWKH\HDUHLWKHUVWURQJRUZHDN   KZKHQ/RUGRIWKH\HDUHLWKHUVWURQJRUZHDN   7KH6XQZKHQ/RUGRIWKH\HDUHLWKHUVWURQJRUZHDN   9HQXVZKHQ/RUGRIWKH\HDUHLWKHUVWURQJRUZHDN   0HUFXU\ZKHQ/RUGRI WKH\HDUHLWKHUVWURQJRUZHDN   

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

  7KH0RRQ/DG\RIWKH\HDUHLWKHUVWURQJRUZHDN   2IWKHDVSHFWVRIDQ\3ODQHWWRWKH/RUGRIWKH\HDULQDQ\5HYROXWLRQ   

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

 



&+$39,&RQWDLQLQJWKHWUXH6LJQLILFDWLRQVRIWKH3ODQHW6DWXUQDV KHLVLQDQ\$QQXDO5HYROXWLRQDFFLGHQWDOO\SODFHGLQDQ\RIWKH 7ZHOYH+RXVHVRI+HDYHQZKHWKHUKHEH/RUGRIWKH
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

$OVRLIKHEHLQWKHIRXUWKDQGVWURQJDVDERYHVDLG PHQVKDOOEH YHU\ ODERULRXV DQG VXFFHVVIXO LQ PDQXULQJ DQG KXVEDQGLQJ WKH JURXQG DQGVKDOOPXFKGHOLJKWWKHPVHOYHVWKHUHLQDQGVKDOOWKULYHWKHUHE\DVDOVR E\KHULWDJHVDQGKRXVHVEXWLIKHEHZHDNWKHUHVKDOOEHQRSURILWLQVXFK WKLQJV KRXVHVVKDOOFRPHWRUXLQWKHHDUWKVKDOOQRWJLYHLWVGXHLQFUHDVH HVSHFLDOO\ LI RWKHU WHVWLPRQLHV FRQFXU IRU KRZ WR MXGJH RI SOHQW\ DQG VFDUFLW\ \RX VKDOO KDYH DQRQ \HW 6DWXUQ KLV SUHVHQFH LQ WKLV KRXVH DQG XQIRUWXQDWH\RXPXVWNQRZ ZLOOVRPHZKDWOHVVHQWKHIHUWLOLW\SURPLVHGLQ DQ\ 5HYROXWLRQ  DV ZLOO EH H[SHFWHG E\ WKH KXVEDQGPDQ ZKRVH KRSHV WKHUHLQZLOOEHIUXVWUDWHGDQGPXFKRIKLVWLPHVSHQWLQYDLQ   $JDLQ,IKHEHLQWKHILIWKDQGVWURQJWKH3HRSOHVKDOOEHMRFXQG SOHDVDQWDQGPHUU\VKDOOGHOLJKWLQWKHLU&KLOGUHQ)HDVWLQJVDQGWKHOLNH LI KH EH WKHUHLQ ZHDN MXGJH WKH FRQWUDU\ VDGQHVV IRU MR\ FURVVHV E\ &KLOGUHQIRUGHOLJKWLQWKHPDQGSHQXU\DQGZDQWLQVWHDGRI)HDVWV   ,IKHEHIRUWLILHGLQWKHVL[WKMXGJHKHDOWKWRWKH3HRSOHLILWEHD KXPDQHVLJQZKLFKSRVVHVVHVWKH&XVSWKHUHRIDQGJRRGWRVHUYDQWVLILW EH EHVWLDO LW ZLOO EH PRUH HVSHFLDOO\ PDQLIHVW LQ VXFK &UHDWXUHV DV DUH WKHUHE\UHSUHVHQWHGDVLI$ULHVRU&DSULFRUQ6KHHS*RDWVDQGVPDOO&DWWOH LI7DXUXV%XOOV&RZV2[HQDQGWKHJUHDWHUVRUWRI&DWWOH+RUVHV FLILQ ZDWHU\VLJQVVXFFHVVDQGJRRGWR5LYHUV)RXQWDLQVDQG)LVKLIWKHVLJQRI WKHVL[WKEH9LUJRWRWKH(DUWKDQGLWV)UXLWVDV&RUQ FLIKHEHLPSHGLWHG RUZHDNMXGJHWKHFRQWUDU\VLFNQHVVDQGGHWULPHQWXQWRWKHPDFFRUGLQJ DV \RX VHH WKH VHYHUDO VLJQLILFDWLRQV RI WKH VLJQ RQ WKH &XVSRI WKH VL[WK +RXVH   0RUHRYHULI6DWXUQEHLQWKHVHYHQWKDQGVWURQJDQGWKHVLJQEH KXPDQHPHQVKDOOGHOLJKWWKHPVHOYHVLQZRPHQHVSHFLDOO\ROGPHQDQG VKDOO &RQWUDFW DQG PDNH 0DUULDJHV LI LW EH DQ\ RWKHU VLJQ VHH RI ZKDW QDWXUH DQG VLJQLILFDWLRQ LW LV DQG MXGJH WKH\ VKDOO GHOLJKW WKHPVHOYHV LQ VXFKWKLQJVDVDUHDFFRUGLQJWRWKHQDWXUHWKHUHRIDQGSURILWWKHUHE\EXWLI KHEHZHDNMXGJHWKHFRQWUDU\   $QG LI KH EH LQ WKH HLJKWK DOWKRXJK KH EH VWURQJ \HW VKDOO KH VLJQLI\GDQJHURIGHDWKDQGUXLQWRWKRVHWKLQJVVLJQLILHGE\WKHVLJQRIWKH HLJKWKDVLIDKXPDQHVLJQWRPHQ FEXWLIKHEHZHDNLWLVWKHPRUHWR EHIHDUHGDQGLIRWKHUWHVWLPRQLHVDJUHHLWLVWREHFRQFOXGHGEXWHVSHFLDOO\ WRPHQRIHOGHU\HDUV   $OVRLIKHEHLQWKHQLQWKZHOOGLJQLILHGDQGLQDIL[HGVLJQPHQ VKDOOEHFKDVWHORYHUVRI5HOLJLRQWKH/DZDQGDOOJRRG/HDUQLQJEXWLIWKH VLJQEHPRYDEOHWKH\VKDOOPDNHPDQ\9R\DJHVE\6HDRUORQJ-RXUQH\V LQ ZKLFK WKH\ VKDOO FRQWLQXH ORQJ EXW LI KH EH WKHQ ZHDN MXGJH WKH 

  6DWXUQLQWKHIRXUWK   6DWXUQLQWKHILIWK   6DWXUQLQWKHVL[WK   6DWXUQLQWKHVHYHQWK   6DWXUQLQWKHHLJKWK   6DWXUQLQWKHQLQWK   

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



&+$39,,2IWKH6LJQLILFDWLRQRI-XSLWHUDVKHLVDFFLGHQWDOO\SODFHG LQDQ\RIWKH7ZHOYH+RXVHVRI+HDYHQLQDQ\$QQXDO5HYROXWLRQ ZKHWKHUKHEH/RUGRIWKH
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

ZLOOLQJ WR GR \RX VHH KH LV DOWRJHWKHU XQDEOH WR SHUIRUP EHLQJ ZHDN RU KDYLQJQRSRZHURUDELOLW\LQOLNHPDQQHUMXGJHRIKLVFRQVLVWHQFHLQDQ\ RWKHU+RXVHZKHQKHLVLQWKHOLNHFDVHLQGLJHQW   ,I KH EH LQ WKH VHFRQG DQG VWURQJ KH VLJQLILHV DEXQGDQFH RI SURVSHULW\ DQG ULFKHV WR WKH 3HRSOH HVSHFLDOO\ LQ VXFK WKLQJV DQG FRPPRGLWLHVDVDUHVLJQLILHGE\WKHVLJQZKHUHLQ-XSLWHULVDOVRLIWKH/RUG RIWKHVHFRQGDSSO\XQWRKLPWKHLUULFKHVZLOOFRPHWXPEOLQJRQWKHPWKH\ NQRZQRWKRZEXWLIKHDSSO\WRWKH/RUGRIWKHVHFRQGLWZLOOEHE\WKHLU RZQODERXUDQGLQGXVWU\WKDWWKH\VKDOODXJPHQWWKHLUULFKHV%\WKLVUXOH PD\\RXLI\RXKDVWZHOOFRQVLGHUHGZKDWKDVEHHQVDLGLQWKHSUHFHGLQJ 'LVFRXUVH  MXGJH RI HYHU\ WKLQJ DSSHUWDLQLQJ WR WKH VLJQLILFDWLRQ RI DQ\ +RXVH,I-XSLWHUEHZHDNDQGLQWKHVHFRQGKHQHLWKHUSURPLVHVULFKHVQRU SRYHUW\LQKLPVHOIH[FHSWE\DFFLGHQWZKHUHIRUH\RXDUHZDULO\WRFRQVLGHU DV KDVEHHQVDLG WKHVLJQLILFDWLRQRIHDFK3ODQHWDVKHLVLQ\RXU6FKHPH VLJQLILFDWRURIDQ\WKLQJDQGQRWZKROO\ DVKHLVQDWXUDOO\DQGVRMXGJHRI WKHJRRGRUHYLOSRUWHQGHGE\KLVVLJQLILFDWLRQDQGDVSHFWVLJQDQGTXDUWHU RI+HDYHQKHSRVVHVVHV   $OVRLIKHEHLQWKHWKLUGDQGVWURQJWKH3HRSOHVKDOOEHSOHDVDQW DQG GHOLJKW WR DVVRFLDWH WKHPVHOYHV ZLWK WKHLU QHLJKERXUV DFTXDLQWDQFH DQG NLQGUHG VKDOO GHOLJKW DOVR LQ FKDULWDEOH DQG DOPVGHHGV DQG EH SURVSHURXVDQGVXFFHVVIXOLQDOOVKRUW-RXUQH\VDQGJLYHWKHPVHOYHVWRWKH VWXG\RI$UWVDQG6FLHQFHVEXWLIKHEHZHDNWKH\VKDOOQRWKDYHWKHOLNH VWURQJLQFOLQDWLRQVXQWRWKHVHWKLQJV   $JDLQ ,I -XSLWHU EH LQ WKH IRXUWK DQG ZHOO GLJQLILHG PHQ VKDOO LQILQLWHO\ DERXQG LQ ZHDOWK DQG SURVSHU E\ WKHLU ODERXUV RQ WKH JURXQG HVSHFLDOO\KXVEDQGHUVDQGPDQXUHUVWKHUHRIEXWLIKHEHXQIRUWXQDWHWKHUH VKDOOKDSSHQPXFKVDGQHVVDQGWURXEOHXQWRWKHPWRZDUGVWKHHQGRIWKH \HDU F   0RUHRYHU LI KH EH LQ WKH ILIWK PHQ VKDOO GHOLJKW LQ IHDVWLQJ VSRUWLQJDQGDOOPDQQHURIUHFUHDWLRQDQGSDVWLPHVKDOOEHSOHDVDQWPHUU\ DQGUHFHLYHPXFKMR\DQGFRQWHQWIURPE\WKHLU&KLOGUHQZRPHQVKDOOEH DSWWRFRQFHLYHZLWK&KLOGDQGWKH\VKDOOEULQJWKHPVDIHO\IRUWKSHUIHFW DQGZLWKRXWGDQJHUEXWLIKHEHZHDNLWZLOOQRWEHVRZHOOLIDQ\WKLQJDW DOOJRRG   ,Q WKH VL[WK DQG ZHOO GLJQLILHG WKH JRRG FRQGLWLRQ DQG VWDWH RI 6HUYDQWVLVSURPLVHGDOVRKHDOWKERWKXQWRWKHPDQGWKH3HRSOHLQJHQHUDO LIWKHVLJQZKHUHLQKHLVEHKXPDQHLIEHVWLDOWREHDVWVRIWKDWQDWXUHWKH VLJQLVRI FDV\RXKDYHKHDUGLQWKHSUHFHGLQJ&KDSWHUZKHUHZHVSRNH RI6DWXUQKLVEHLQJLQWKHVDPH+RXVHLIKHEHDIIOLFWHGMXGJHQRWVRPXFK   -XSLWHULQWKHVHFRQG   -XSLWHULQWKHWKLUG   7KHFRPSDVVLRQDWHUHOLHYLQJRIDQRWKHU VPDWHULD OQHHGIRU*RG VVDNH   -XSLWHULQWKHIRXUWK   -XSLWHULQWKHILIWK   -XSLWHULQWKHVL[WK   

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

  -XSLWHULQWKHVHYHQWK   -XSLWHULQWKHHLJKWK   -XSLWHULQWKHQLQWK   -XSLWHULQWKHWHQWK   -XSLWHULQWKHHOHYHQWK   -XSLWHULQWKHWZHOIWK   



&+$39,,,&RQWDLQLQJWKH6LJQLILFDWLRQVRI0DUVLQWKH7ZHOYH +RXVHVRI+HDYHQLQDQ\DQQXDO5HYROXWLRQZKHWKHUKHEH/RUGRIWKH
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

  0DUVLQWKHILUVW  0DUVLQWKHVHFRQG   0DUVLQWKHWKLUG   0DUVLQWKHIRXUWK   0DUVLQWKHILIWK   0DUVLQWKHVL[WK   

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

&+$3,;6KRZLQJWKH6LJQLILFDWLRQVRIWKH6XQLQWKH7ZHOYH+RXVHV RI+HDYHQLQDQ\$QQXDO5HYROXWLRQZKHWKHUKHEH/RUGRIWKH


5HKHDUVLQJ WKH 3ODQHWV DFFRUGLQJ WR WKHLU RUGHU DQG SODFHV LQ WKH +HDYHQV DIWHU 0DUV IROORZV WKH 6XQ ZKR LI KH EH LQ WKH $VFHQGDQW IRUWXQDWH HVVHQWLDOO\ GLJQLILHG DQG LQ UHFHSWLRQ ZLWK WKH /RUG RI WKH $VFHQGDQWDQGEHKHOGDPLFDEO\E\KLPWKH\HDUVKDOOJHQHUDOO\EHKDSS\ DQG VXFFHVVIXO IRU HYHU\ RQH DVZHOO WKH .LQJ DV WKH %HJJDU EXW LI KH EH WKHUHLQLQIRUWXQDWHLWVKDOOEHFOHDQFRQWUDU\DQGHVSHFLDOO\QREOHDQGJUHDW PHQVKDOOVXIIHULQWKHLUSHUVRQVGLVKRQRXUGLVJUDFHDQGEHSHUKDSVFDVW RXWRIWKHLUGLJQLWLHVDQGSODFHV  

  0DUVLQWKHVHYHQWK   0DUVLQWKHHLJKWK  0DUVLQWKHQLQWK   0DUVLQWKHWHQWK  0DUVLQWKHHOHYHQWK  0DUVLQWKHWZHOIWK  7KH6XQLQWKHILUVW  

7KH6XQLQWKHVHFRQGWKH3HRSOHVKDOOZDVWHDQGH[SHQGWKHLU ZHDOWKDOVRWKHLU5XOHUVVKDOOFRYHWDIWHUWKHIPJULQJDQGGLVSRVLQJWKHUHRI LQVRPXFKWKDWWKH\VKDOOOLYHVQHDNLQJO\DQGSRRU   7KH6XQLQWKHWKLUGVKRZVWKH3HRSOHVKDOOGHOLJKWLQJRRGQHVV DQGLQWKH/DZVKDOOORYHDQGDVVRFLDWHWKHPVHOYHVZLWKWKHLUQHLJKERXUV IULHQGVNLQGUHGDQGDVVRFLDWHVIRUWKHZKLFKWKH\VKDOOEHSUDLVHG   ,I KH EH LQ WKH IRXUWK *DUGHQV DQG 9HJHWDEOHV VKDOO EH VSRLOHG DQGVXIIHUGHWULPHQWHVSHFLDOO\LIKHEHLQVLJQVRIWKDWQDWXUHJUHDWPHQ DQG KLJK VKDOO EH PDGH ORZDQGGHJUDGHGDQGLILWEHDZDWHU\VLJQWKH HDUWK VKDOO EH GU\ DQG WKH ZDWHU GULHG XS >, EHOLHYH WKH $QFLHQWV PHDQW ILHU\@   $JDLQ,IWKH6XQEHLQWKHILIWKKHGHQRWHVGHWULPHQWDQGJULHIVR VXFK&UHDWXUHVDVDUHZLWK\RXQJVRWKDWKDUGO\GRDQ\HVFDSHZLWKRXW VRPHPDQLIHVWKXUWRURWKHU   $OVR LI KH EH LQ WKH VL[WK PDQ\ JULHIV DQG LQILUPLWLHV VKDOO KDSSHQDQGFKLHIO\LQWKHH\HVDQGVXFKOLYLQJ&UHDWXUHVVKDOOGLHDVDUH VLJQLILHG E\ WKH VLJQ ZKHUHLQ KH LV ORFDWHG WKH .LQJ DOVR RU FKLHI 5XOHUV VKDOOEHVDGWKDW\HDUPXFKORVVDOVRDQGGDPDJHVKDOOEHE\VHUYDQWVDQG VXFKWKLQJVDVDUHVLJQLILHGE\WKHVL[WK+RXVHDOVRWKHLJQREOHDQGEDVHU VRUWRI3HRSOHVKDOOHQY\DQGUDLVHWKHPVHOYHVXSDJDLQVWWKHLU6XSHULRUV   0RUHRYHU LI KH EH LQ WKH VHYHQWK KH GHQRWHV GLVFRUGVEHWZHHQ WKH3HRSOHDQGWKHLU5XOHUVDQGEHWZL[WWKH.LQJDQGWKH1REOHVDQGWKDW WKH .LQJ VKDOO NHHS DW D GLVWDQFH ZLWK WKH 3HRSOH RU NHHS KLPVHOI UHWLUH IURPWKHP   ,QWKHHLJKWKKHGHQRWHVWKHGHDWKRI.LQJVDQGJUHDWPHQDOVR WKH GHSRVLQJ RI .LQJV DQG XQWKURQLQJ RI 1REOHV DQG *UDQGHHV DQG D OHVVHQLQJ RU GLPLQLVKLQJ RI WKHLU SRZHU HVSHFLDOO\ LI KH EH EHKHOGE\WKH /RUGRIWKHHLJKWK   %XWLIKHEHLQWKHQLQWKKHVKRZVWKHLQFOLQDWLRQVRIWKH3HRSOH DUH JHQHUDOO\ WR JRRG DQG WKDW WKH\ VKDOO EH IRUWXQDWH DQG VXFFHVVIXO LQ ORQJ-RXUQH\VDQG9R\DJHVDQGVKDOOORYHDQGGHOLJKWLQERWKWKH/DZRI *RGDQG0DQ   $OVRLIWKH6XQEHLQWKHWHQWKLWGHQRWHVWKHJORU\UHQRZQDQG KRQRXURIWKH.LQJRUFKLHI5XOHUVDOVRWKHJRRGFRQGLWLRQRIWKH3HRSOH 

  7KH6XQLQWKHVHFRQG  7KH6XQLQWKHWKLUG  7KH6XQLQWKHIRXUWK  7KH6XQLQWKHILIWK  7KH6XQLQWKHVL[WK  7KH6XQLQWKHVHYHQWK  7KH6XQLQWKHHLJKWK  7KH6XQLQWKHQLQWK  7KH6XQLQWKHWHQWK

 

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



&+$3;6KRZLQJWKH6LJQLILFDWLRQRI9HQXVLQWKH7ZHOYH+RXVHVRI +HDYHQLQDQ\$QQXDO5HYROXWLRQZKHWKHUVKHEH/DG\RIWKH
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

  7KH6XQLQWKHHOHYHQWK  7KH6XQLQWKHWZHOIWK   9HQXVLQWKHILUVW   9HQXVLQWKHVHFRQG   9HQXVLQWKHWKLUG   9HQXVLQWKHIRXUWK   9HQXVLQWKHILIWK   

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

  9HQXVLQWKHVL[WK  9HQXVLQWKHVHYHQWK  9HQXVLQWKHHLJKWK  9HQXVLQWKHQLQWK  9HQXVLQWKHWHQWK  9HQXVLQWKHHOHYHQWK  9HQXVLQWKHWZHOIWK  

&+$3;,2IWKH6LJQLILFDWLRQVRI0HUFXU\LQWKH7ZHOYH+RXVHVRI +HDYHQLQDQ\$QQXDO5HYROXWLRQZKHWKHUKHEH/RUGRIWKH


0HUFXU\ LQ WKH WZHOYH +RXVHV RI+HDYHQFRPHVQRZWREHFRQVLGHUHG ZKR LI KH EH LQ WKH ILUVW KH VKRZV WKH \HDU VKDOO EH JRRG DQG VXFFHVVIXO 0HQ VKDOO EH LQJHQLRXV DQG DOVR &KLOGUHQ DQG
  0HUFXU\LQWKHILUVW  0HUFXU\LQWKHVHFRQG  0HUFXU\LQWKHWKLUG  0HUFXU\LQWKHIRXUWK  0HUFXU\LQWKHILIWK  0HUFXU\LQWKHVL[WK  

,I KH EH LQ WKH VHYHQWK KH GHQRWHV PHQ ZLOO EH DGGLFWHG WR ODVFLYLRXVQHVV DQG WKH FRPSDQ\ RI ZRPHQ FDUQDOO\ DQG LI KHEH ZHDN WKH\VKDOOIO\RXWDQGFRPPLWPDQ\IRUQLFDWLRQVDQGILOWK\DFWV   ,Q WKH HLJKWK KH VKDOO FDXVH WKH GHDWK RI PDQ\




&+$3;,,2IWKHVLJQLILFDWLRQVRIWKH0RRQLQWKH7ZHOYH+RXVHVRI +HDYHQLQDQ\$QQXDO5HYROXWLRQZKHWKHU6KHEH/DG\RIWKH
(YHQDVZHKDYHDOUHDG\WUHDWHGRIWKH6L[IRUHJRLQJ3ODQHWVOHWXV\HW FRQWLQXHWRVKRZDOVRWKHVLJQLILFDWLRQVRIWKH0RRQLQWKH7ZHOYH+RXVHV RI+HDYHQ:KHUHIRUHLIWKH0RRQLQDQ\$QQXDO5HYROXWLRQEHLQWKHILUVW +RXVHZKHWKHUVKHEH/DG\RIWKH
  0HUFXU\LQWKHVHYHQWK  0HUFXU\LQWKHHLJKWK  0HUFXU\LQWKHQLQWK  0HUFXU\LQWKHWHQWK  0HUFXU\LQWKHHOHYHQWK  0HUFXU\LQWKHWZHOIWK  GLQWKHILUVW  

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



  GLQWKHQLQWK  GLQWKHWHQWK  GLQWKHHOHYHQWK   GLQWKHWZHOIWK  



&+$3;,,,&RQWDLQLQJWKHVLJQLILFDWLRQVRIWKH+HDGDQG7DLORIWKH 'UDJRQLQWKH7ZHOYH+RXVHVRI+HDYHQLQDQ\$QQXDO5HYROXWLRQRI WKH
6LQFHZHKDYHQRZZDGHGWKURXJKWKHVLJQLILFDWLRQVRIWKH6HYHQ&HOHVWLDO 3ODQHWVLQWKH7ZHOYH+RXVHVRI+HDYHQLQDQ\5HYROXWLRQRIWKH
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

  NLQWKHVL[WK"LQWKHVL[WK  NLQWKHVHYHQWK "LQWKHVHYHQWK   NLQWKHHLJKWK"LQWKHHLJKWK  NLQWKHQLQWK"LQWKHQLQWK   NLQWKHWHQWK"LQWKHWHQWK  NLQWKHHOHYHQWK "LQWKHHOHYHQWK   NLQWKHWZHOIWK"LQWKHWZHOIWK  

DVVLVWDQFH\RXDUWWRMXGJHJRRGRUEDGDQGQRWDOZD\VDFFRUGLQJWRWKHVH JHQHUDO 5XOHV DV \RX KDYH EHHQ VXIILFLHQWO\ WDXJKW RI WKH3ODQHWVVRDOVR WRXFKLQJ WKH SODFHV ZKHUH WKHLU HIIHFWV VKDOO EH PDQLIHVWHG REVHUYH WKH VDPH5XOHV\RXKDYHEHHQDOUHDG\WDXJKWYL]WKRVHVXEMHFWWRWKHVLJQVLQ ZKLFKWKH\DUH F 





&+$3;,96KRZLQJWKH6LJQLILFDWLRQVRIWKH3ODQHWVLQDQ\RIWKH 7ULSOLFLWLHVZKHQDQ\RIWKHPLV/RUGRIWKH
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

5HJLRQV&RXQWULHVDQG.LQJGRPVVLJQLILHGE\$ULHVDQGDOOWKH7ULSOLFLW\ ZKLFK \RX KDYH DOVR EHHQVKRZQLQWKHDIRUHVDLG%RRNDQG&KDSWHU  HVSHFLDOO\LQWKH(DVWHUQSDUWVWKHUHRIEHFDXVHWKH\DUH(DVWHUQVLJQV F WKLVLVFOHDU  6R WKDW LI \RX KDYH EXW UHJDUG WR WKH 1DWXUDO DQG $FFLGHQWDO VLJQLILFDWLRQVRIWKH3ODQHWVLJQKHLVLQKLVVWUHQJWKDQGGHELOLWLHVWKHUHLQ ZKDW7ULSOLFLW\WKHVLJQLVRIDQGZKDW5HJLRQVDQG4XDUWHURI+HDYHQLW GHQRWHV WRJHWKHU ZLWK WKH 7ULSOLFLW\ DQG GR EXW MXGJHDFFRUGLQJWRZKDW \RXKDYHEHHQVKRZQDQG,QHHGVD\QRPRUHIRUWKHUHE\PD\\RXHDVLO\ DQGH[DFWO\MXGJHRIWKHUHVW  

&+$3;9'HPRQVWUDWLQJWKH6LJQLILFDWLRQVRI6DWXUQZKHQKHLV/RUG RIWKH

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

  6DWXUQ/RUGRIWKH\HDUDQGLQ*HPLQL   

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

  6DWXUQ/RUGRIWKH\HDU KDYLQJ6HSWHQWULRQDOODWLQ Y  ,IKHEH0HULGLRQDO   2FFLGHQWDO   6DWXUQ/RUGRIWKH
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
  2ULHQWDO  2FFLGHQWDO  $QGKHVKDOOEHDIULHQGWRPH   6DWXUQ/RUGRIWKH\HDUDQGLQ/HR   6DWXUQ/RUGRIWKH\HDULQ9LUJR   6DWXUQ/RUGRIWKH\HDULQ/LEUD   

VLJQLILHV,QILUPLWLHV WR 6HUYDQWV DQG WKH %DVHU 6RUW RI 3HRSOH $QG LI KH EH GLUHFW WKHUH VKDOO EH SUHWW\ 3OHQW\ RI WKH )UXLWV RI WKH (DUWK HVSHFLDOO\RI %DUO\ F   6DWXUQ /RUG RI WKH
 

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





&+$3;9,6KRZLQJWKH6LJQLILFDWLRQVRI-XSLWHUZKHQKHLV/RUGRI WKH\HDULQDQ\RIWKH7ZHOYH6LJQV

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

  6DWXUQ/RUGRIWKH\HDULQ 3LVFHV  -XSLWHU/RUGRIWKH\HDULQ$ULHV 

 

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

0RUHRYHULI-XSLWHUEHLQ6DJLWWDULXVKHGHQRWHVDWHPSHUDWH$LULQ WKH EHJLQQLQJ RI ZLQWHU EXW LQ WKH HQG WKHUHRI JUHDW FROG EXW IHZ RU QR KLJK ZLQGV DOVR PXFK VQRZ DQG IURVW LQ WKH VSULQJ LQVRPXFK WKDW WKH IUXLWVRIWKHHDUWKVKDOOEHPXFKGDPQLILHGWKHUHE\IRUPDQ\RIWKHPVKDOO EH QLSW LQ WKH EXG DQG EODVWHG $QG LI KLV ODWLWXGH EH 6HSWHQWULRQDO KH VLJQLILHVOLWWOHUDLQEXWDPRVWWHPSHUDWHJRRG$LULI0HULGLRQDODWXUEXOHQW $LU DQG PDQ\ JUHDW JXVWV RI ZLQG LI KH EH 2ULHQWDO QREOH DQG ULFK PHQ VKDOOEHLQDJRRGDQGMR\IXOFRQGLWLRQLI2FFLGHQWDOWKH\VKDOOEHUDLVHGWR GLJQLW\DQGUHQRZQLI5HWURJUDGHLWVKDOOQRWEHVDIHWUDYHOOLQJRUYR\DJLQJ E\6HDEXWLI'LUHFWMXGJHWKHPWREHVDIHDQGIUHHIURPDQ\GDQJHUWKDW YR\DJHE\VHDMXGJHDOVRWKDWILVKDQGVXFKFUHDWXUHVDVGHOLJKWLQZDWHUV VKDOOLQFUHDVH F   ,Q&DSULFRUQ-XSLWHULIKHEH/RUGRIWKH\HDUGRHVQRWSURPLVH PXFKJRRGZHDWKHULQGHHGKHZLOOEHWKH$XWKRURIPXFKPLVFKLHIEXW DFFRUGLQJWRKLVSRVLWLRQDQGWKHDVSHFWVRIRWKHU3ODQHWVXQWRKLP\RXDUH WRMXGJHIRULIKHEHZHOODVSHFWHGDQGIUHHIURP5HWURJUDGDWLRQDQGRWKHU LPSHGLPHQWVKHSURPLVHVDSOHQWLIXO\HDUTXRDG&DSD[\HWQR H[WUDRUGLQDU\DEXQGDQFHEXWVXIILFLHQWDOVRDSOHDVDQW$LUPDQ\JUHDW 6RXWKHUQZLQGVVXFFHVVDQGSURILWWRWKHFRPPRQSHRSOH FEXWLI\RX IPGHKLPDIIOLFWHGE\WKHLU0DOHYROHQW$VSHFWVDQGLOOSODFHGMXGJHWKH FRQWUDU\   %XW LI -XSLWHU EH LQ $TXDULXVDQG/RUGRIWKH\HDUDOVRDVVLVWHG DQG ZHOO SODFHG MXGJH WKH \HDU WR EH WHPSHUDWH DQG VHDVRQDEOH IRU WKH PRVW SDUW D WHPSHUDWH $LU SOHDVDQW VKRZHUV F EXW LI \RX ILQG KLP DIIOLFWHG MXGJH WKH FRQWUDU\ PXFK KXUW DQG GDPDJH E\ KLJK ZLQG UDLQ DQGVQRZ F  /DVWO\LI-XSLWHUEH/RUGRIWKH\HDUDQGLQ3LVFHVWKH$LUVKDOOEH ZKROVRPH FOHDU DQG JRRG D SOHQWLIXO \HDU VHDVRQDEOH VKRZHUV DQG VXFFHVV WR DOO WKRVH WKDW QDYLJDWH DQG QHJRWLDWH E\ VHD DEXQGDQFH RI ILVK FEXWLIKHEHDIIOLFWHGKHVKDOOGHQRWHPXFKWKXQGHUDQGUDLQ  





&+$3;9,,6KRZLQJWKH6LJQLILFDWLRQVRI0DUVZKHQKHLV/RUGRI WKH\HDULQDQ\RIWKHWZHOYH6LJQV

,Q WKH QH[W SODFH \RX VHH IROORZV0DUV ZKR LV QH[W XQGHU -XSLWHU DQG WKHUHIRUHQRZWREHWUHDWHGRIZKHUHIRUHLIKHEH/RUGRIWKH\HDUDQGLQ $ULHVKHVLJQLILHVPDQ\JUHDWDQGKLJKZLQGVDQGYDULRXVPXWDWLRQVLQWKH $LULQWKH(DVWHUQSDUWVHVSHFLDOO\KHVLJQLILHVDOVROLWWOHRUQRUDLQDQGWKDW PHQ VKDOO KDYH SDLQ LQ WKHLU H\HV DQG TXDUUHOV GLVVHQWLRQV DQG GHEDWHV DPRQVW PHQ HVSHFLDOO\ LQ WKH (DVWHUQ SDUWV DQG VXFK SODFHV DQG &LWLHV VXEMHFW WR $ULHV DQG WKDW .LQJV VKDOO GLLVDJUHH DPRQJVW WKHPVHOYHV DQG 

  -XSLWHU/RUGRIWKH\HDULQ6DJLWWDULXV   -XSLWHU/RUGRIWKH\HDULQ&DSULFRUQ   -XSLWHU/RUGRIWKH\HDULQ$TXDULXV   -XSLWHU/RUGRIWKH\HDULQ3LVFHV   0DUV/RUGRIWKH\HDULQ$ULHVDQGDIIOLFWHG 

 

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

  6RXWKODWLWXGH  2ULHQWDO  2FFLGHQWDO  'LUHFW  5HWURJUDGH  0DUV/RUGRIWKH\HDULQ*HPLQL   ,IKHKDYHQRUWKVRXWKODWLWXGH   2ULHQWDO2FFLGHQWDO   'LUHFW5HWURJUDGH   0DUV/RUGRIWKH\HDULQ&DQFHU 

 

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

 

KHUEVDQGVHHGVVKDOOEHYHU\PXFKGDPQLILHGDQGWKH\HDUJHQHUDOO\VKDOO EHVFDUFHDQGLQGLJHQWRISURYLVLRQVDOVRKRQH\VKDOOQRWEHSOHQWLIXOIRU E\ UHDVRQ RI WKH VFDUFLW\ RI KHUEV %HHV VKDOO PDQ\ RI WKHP EH GHVWUR\HG DQGLIWKHUHLQKHEHZHOODVSHFWHGDQGIUHHIURPWKH0DOHYROHQW$VSHFWVRI WKH,QIRUWXQHVDOOVXFKDVEHDUDUPVRUKDYHDQ\UHODWLRQWKHUHXQWRRIZKDW GHJUHHVRHYHUVKDOOEHLQJRRGFRQGLWLRQIRUWXQDWHDQGVXFFHVVIXO   6RPH RI WKH $QFLHQWV ZLWK$OEXPD]DU VD\ WKDW LI0DUV EH LQ WKH ODVWILIWHHQGHJUHHVRI6DJLWWDULXVDQG/RUGRIWKH\HDULQDQ\5HYROXWLRQRU LQ DQ\ KXPDQH 6LJQ KH GHQRWHV ZDUV WXPXOWV DQG LQVXUUHFWLRQV RI WKH SHRSOHDJDLQVWWKHLU.LQJDQG6XSHULRUVVXGGHQGHDWKIHYHUVERWK7HUWLDQ 4XDUWDQ DQG 3HVWLOHQWLDO DQG PDQ\ RWKHU LQILUPLWLHV UREELQJV VDFNLQJV DQG SROLQJV EORRGVKHG ILUH DQG VZRUG DQG OLJKWQLQJV DQG LI KH EH ,QIRUWXQDWHO\DVSHFWHGE\WKH0DOHYROHQWVDQGRWKHUZD\VDOVRGHELOLWDWHG KHVLJQLILHVDOOWKHVHWKLQJV\RXKDYHQRZKHDUGEXWPRUHPLVFKLHYRXVO\ XQOHVVWKH%HQHYROHQW$VSHFWVRI-XSLWHUSUHYHQWDQGFRQWUDGLFWKLVIXU\   ,I KLV ODWLWXGH EH 6HSWHQWULRQDO KH VLJQLILHV WKH $LU VKDOO EH  JRRGSOHDVDQWDQGWHPSHUDWHLI0HULGLRQDO0HUFKDQWVDQG7UDGHVPHQ VKDOOEHRQWKHWKULYLQJDQGJDLQLQJKDQGLIKHEH2ULHQWDOKHGHQRWHV SHDFHTXLHWQHVVDQGVHFXULW\DQGQRZDU2FFLGHQWDOWKHVDIHW\RIWUHHV DQG PXFK IUXLW DQG LI 5HWURJUDGH KH GHQRWHV FRXJKV DQG SDLQV LQ WKH KLQGHU SDUW RI WKH KHDG DQG QHFN DOVR LQ WKH WKLJKV LI 'LUHFW D GHDWK RU PRUWDOLW\DPRQJVWFDWWOH   $JDLQLI0DUVEH/RUGRIWKH\HDULQDQ\5HYROXWLRQDQGORFDWHG LQ &DSULFRUQ KH GHQRWHV ZDUV WULEXODWLRQ DQG VODXJKWHU WR \RXQJ PHQ SHUSOH[LWLHVDQGIHDUVWRWKH(DVWHUQSDUWVDOVRUDLQLQGXHVHDVRQDQGWKDW PRGHUDWHSOHQW\RIDOOSURYLVLRQVDQGDIUXLWIXODQGSOHQWLIXO\HDU   $QG LI KH KDYH 1RUWK ODWLWXGH KH VLJQLILHV PXFK VQRZ LQ WKRVH SDUWV ZKHUH LW LV XVXDO DQG UHTXLVLWH LI KH KDYH 0HULGLRQDO ODWLWXGH KH GHQRWHVDFORVHKRW$LULI2ULHQWDOOHWWKH5RPDQ(PSHURUKDYHDFDUHRID VWRE DQG VR PXFK WKH PRUH DVVXUHG ZLOO WKLV EH LI WKH0RRQ EH LQ WKH HLJKWKKRXVHRUMRLQHGE\ERG\RUDVSHFWWRWKH/RUGWKHUHRIRUMRLQHGWR 0DUV LQ DQ\ RI WKH $QJOHV RU LQGHHG DQ\ RWKHU KRXVH HVSHFLDOO\ LQ WKH HLJKWK RU EH EHKHOG E\ WKH6TXDUHRU2SSRVLWLRQRIWKH/RUGRIWKHHLJKWK DQG WKH PRUH DVVXUHGO\ ZLOO WKLV EH DQG \RXPD\EHFRQILGHQWWKHUHRILI WKHUH EH PXWXDO UHFHSWLRQ DOVR EHWZL[W WKHP RU HLWKHU RI WKHP DQG WKH /RUGRIWKHHLJKWKIRULIWKHQ-XSLWHUSUHYHQWQRWE\KLV%HQHYROHQWEHDPV DQGFDVWKLVDVSHFWXQWR0DUVRUWKH0RRQKHZLOOQRWHVFDSHZLWKOLIHWKDW 5HYROXWLRQ XQOHVV *RG PLUDFXORXVO\ VKRZ KLV LQILQLWH PHUF\ WRZDUGV   ,IVWURQJ  6HSWHQWULRQDO   0HULGLRQDO  2ULHQWDO   2FFLGHQWDO   0DUV/RUGRIWKH\HDULQ&DSULFRUQ   1RUWKODWLWXGH0HULGLRQDO2ULHQWDO   $VKRUWVWUDLJKWVWLFNRIZRRG   2FFLGHQWDO'LUHFW5HWURJUDGH 

 

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



&+$3;9,,,&RQWDLQLQJWKH$FFLGHQWVVLJQLILHGE\WKH6XQZKHQKHLV /RUGRIWKH\HDULQDQ\RIWKHWZHOYH6LJQV



/DERXU EXW WR XQGHUVWDQG WKH QDWXUH RI HYHU\ 3ODQHW DQG 6LJQ DQG WR GLVWLQJXLVK H[DFWO\ HYHU\ RQHV VWUHQJWK DQG IRUWLWXGHV IURP KLV GHELOLWLHV DQGWKHQE\REVHUYLQJWKHUHDVRQVRIZKDWKDVEHHQDOUHDG\VDLGLQWKHVH WKUHH IRUJRLQJ &KDSWHUV LQ KDQGOLQJ WKH 6LJQLILFDWLRQV RI WKHVH 6XSHULRU 3ODQHWV \RX PD\ VRRQ NQRZ KRZ WR XQGHUVWDQG WKH 6LJQLILFDWLRQV RI WKH 6XQ LQ HYHU\ 6LJQ ZKHQ HYHU KH LV /RUG RI WKH \HDU DQG MXGJH RI WKHP ZLWKRXWDQ\IXUWKHULQVWUXFWLRQ  
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





&+$3;,;2IWKHWKLQJVVLJQLILHGE\9HQXVZKHQVKHLV/DG\RIWKH \HDULQDQ\RIWKH7ZHOYH6LJQV

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

  9HQXV/DG\RIWKH\HDULQ$ULHV   9HQXVODG\RIWKH\HDULQ7DXUXV   

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

  7KH6XQ/RUGRIWKH\HDULQ*HPLQL   7KH6XQ/RUGRIWKH\HDULQ&DQFHU   7KH6XQ/RUGRIWKH\HDULQ/ HR  7KH6XQ/RUGRIWKH\HDULQ9LUJR   7KH6XQ/RUGRIWKH\HDULQ/LEUD   

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

  7KHDFWVRIGHVSRLOLQJDFRXQWU\LQZDUIDUHSLOODJHSOXQGHU   7KH6XQ/RUGRIWKH\HDULQ6FRUSLR   7KH6XQ/RUGRIWKH\HDULQ6DJLWWDULXV   7KH6XQ/RUGRIWKH\HDULQ& DSULFRUQ   7KH6XQ/RUGRIWKH\HDULQ$TXDULXV   7KH6XQ/RUGRIWKH\HDULQ3LVFHV   



&+$3;;2IWKH6LJQLILFDWLRQVRI0HUFXU\ZKHQKHLV/RUGRIWKH
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

  0HUFXU\/RUGRIWKH\HDULQ$ULHV   0HUFXU\/RUGRIWKH\HDULQ7DXUXV   0HUFXU\/RUGRIWKH\HDULQ*HPLQL 

 

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

  0HUFXU\/RUGRIWKH\HDULQ/LEUD   0HUFXU\/RUGRIWKH\HDULQ6FRUSLR   0HUFXU\/RUGRIWKH\HDULQ6DJLWWDULXV   0HUFXU\/RUGRIWKH\HDULQ&DSULFRUQ   

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



&+$3;;,&RQWDLQLQJWKH6LJQLILFDWLRQVRIWKH0RRQZKHQVKHLV /DG\RIWKH
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






&+$3;;,,6KRZLQJZKDWLVVLJQLILHGE\WKH+HDGDQG7DLORIWKH 'UDJRQDVWKH\DUHSODFHGLQDQ\RIWKH7ZHOYH6LJQVLQDQ\ 5HYROXWLRQ

0DQ\DUHWKHVLJQLILFDWLRQVRINDQG"WKHUHIRUHWRSDUWLFXODUL]HHYHU\ SDUWLFXODUWKLQJZRXOGEHERWKWHGLRXVDQGLQDPDQQHUQHHGOHVV\HW, KROGLWYHU\QHFHVVDU\\RXEHZHOODFTXDLQWHGZLWKWKHLUGHQRWDWLRQVLQ HYHU\VLJQRIWKH=RGLDFLQDQ\5HYROXWLRQDVIROORZV 

 

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

  NLQ$ULHV "LQ$ULHV  NLQ7DXUXV "LQ7DXUXV   NLQ*HPLQL "LQ*HPLQL   NLQ&DQFHU "LQ&DQFHU   NLQ/HR"LQ/HR  NLQ9LUJR "LQ9LUJR   

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



6(&7,21,,,&RQWDLQLQJVRPHRWKHUQHFHVVDU\,QVWUXFWLRQVIRUWKH MXGJLQJRI(YHQWVSRUWHQGHGE\DQ\5HYROXWLRQRIWKH


&+$3,6KRZLQJWKH6LJQLILFDWLRQVRIWKH3ODQHWVLQWKHLU ([DOWDWLRQVDQGDOVRLQ&RQMXQFWLRQ6TXDUHRU2SSRVLWLRQRI6DWXUQ RU0DUVDWWKDWWLPHLQDQ\5HYROXWLRQ

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

LQFRPPRQVLJQVVRPDQ\PRQWKVLIPRYDEOHVRPDQ\ZHHNVRUGD\VEXW LIRQHEHLQDIL[HGVLJQDQGWKHRWKHULQDFRPPRQRQH\RXDUHDFFRUGLQJ WRGLVFUHWLRQWRPDNHFRPPL[HGXUHRIPRQWKVDQG\HDUVRQHLQDFRPPRQ VLJQDQGWKHRWKHULQDPRYDEOHPDNHFRPPL[HGXUHRIPRQWKVDQGZHHNV RUZHHNVDQGGD\VDV\RXVHHUHDVRQEXWLIE\RWKHUWHVWLPRQLHV\RXILQG WKDWWKHHYLOVKDOOQRWFRQWLQXHDIWHUWKDW
  2I0DUVKLVDVSHFWRUFRQMXQFWLRQZLWKDQ\3ODQHWLQH[DOWDWLRQ   



&+$3,,2IWKH6LJQLILFDWLRQVRIWKH3ODQHWVDQG'UDJRQV+HDGDQG 7DLODVDOVR%OD]LQJ6WDUVZKHQWKH\DUHLQDQ\5HYROXWLRQ H[DOWHG RQHDERYHDQRWKHU

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





&+$3,,,&RQWDLQLQJ&RQVLGHUDWLRQVIURPWKH6XQDQG0RRQZKHQ WKH5HYROXWLRQLVHLWKHU'LXUQDORU1RFWXUQDODOVRZKHQWKH5HYROXWLRQ KDSSHQVDW6XQVHWWLQJDQGEUHDNRIGD\IURPWKH/RUGRIWKHKRXU 3DUWRI)RUWXQHWKHLQGLVSRVLWLRQRI6DWXUQDQG0DUVIURPWKHLU &RQMXQFWLRQZLWKWKH'UDJRQV+HDGDQG7DLOLQDQ\$QQXDO 5HYROXWLRQ



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

  'UDJRQV7DLOH[DOWHGDERYH6DWXUQ   -XSLWHU0DUV6RO9HQXV0HUFXU\/XQD   %OD]LQJ6WDUVH[DOWHGDERYH6DWXUQ   -XSLWHU  0DUV6RO9HQXV0HUFXU\/XQD'UDJRQV+HDG'UDJRQV7DLO   ,IDQ\5HYROXWLRQEH'LXUQDO   

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

GRQRPRUHWKHQWKLVVHHWRWKHQDWXUDOVLJQLILFDWLRQRIWKHDIIOLFWLQJ3ODQHW DQGDOVRDFFLGHQWDODVKHLVSODFHGLQ\RXU6FKHPHWKHQDWXUHRIWKHKRXVH DQG VLJQ KH LV SODFHG LQ DQG VR MXGJH DFFRUGLQJO\ MXGJH WKH HYLO VKDOO SURFHHGIURPWKHVLJQLILFDWLRQRIWKHKRXVHZKHUHLQWKHDIIOLFWLQJ3ODQHWLV ORFDWHG WKH QDWXUH DQG TXDOLW\ WKHUHRI IURP WKH QDWXUDO DQG DFFLGHQWDO VLJQLILFDWLRQRIWKH3ODQHWDQGVLJQZKHUHLQKHLV  $VIRUH[DPSOHZHVKDOOVXSSRVH\RXUVLJQLILFDWRUWREHWKH/RUGRI WKH
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

 

JULHYDQFHV DQG WKHVH VKDOO EH LQFLGHQW WR WKRVH SODFHV VXEMHFW WR WKH VLJQ WKHUHLQWKH\DUHMRLQHGDQGXQGHUVWDQGWKHVDPHRI0DUVZKHQKHLVMRLQHG ZLWKHLWKHUWKH+HDGRU7DLO F 





&+$3,97HDFKLQJKRZWRMXGJHRIWKHHYLORIDQ\\HDUWKHQDWXUH WKHUHRIDQGZKHQWKH\HDULVPRVWOLNHO\WREHERWKWXUEXOHQW REQR[LRXVDQGXQIRUWXQDWHDOVRZKDWLVSRUWHQGHGLQDQ\5HYROXWLRQ ZKHQRQH3ODQHWWUDQVIHUVKLVOLJKWDQGQDWXUHWRDQRWKHU

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

 

EH DEOH WR MXGJH RI DQ\ PDWWHU PXWDWLV PXWDQGLV YDU\LQJ \RXU UXOHV DFFRUGLQJWR$UW  $QGWKXVIDUKDYH,LQDPDQQHUUHLWHUDWHGUXOHVDQGZRUGVIRU\RXU WKURXJK XQGHUVWDQGLQJ DQG LQVWUXFWLRQ LQ VXFK PDWWHUV DV KDYH EHHQ GHOLYHUHGLQDPRUHVKRUWDQGFRPSHQGLRXVPDQQHUEHIRUHDQGLQGHHGVR PXFK WKH UDWKHU EHFDXVH WKDW WKRXJK ZKDW ZDV DW WKH EHJLQQLQJ RI WKLV 'LVFRXUVH VHW GRZQ ZDV VXIILFLHQW WR DQG IRU DQ\ RQH WKDW LV DQ\ WKLQJ HQWHUHGLQWRWKLV$UW\HWZRXOGLWSHUKDSVKDYHVHHPHGVRPHZKDWGLIILFXOW WRWKRVHZKRDUHDV\HWDOWRJHWKHUXQVHHQWKHUHLQDQGWKHUHIRUH,KRSHWKLV IDXOWZLOOEHE\WKH-XGLFLRXVGHHPHGYHQLDO:KHUHIRUHOHWXVQRZSURFHHG 





&+$396KRZLQJKRZWRMXGJHRIKHDOWKRUVLFNQHVVLQDQ\\HDU

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

 



&+$39,2I:DUVRU3HDFH

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

  2WKHUUXOHVIRUWKHSUHGLFWLQJZDUDQGKRZLWZLOOEHRFFDVLRQHG   :KHQZHPD\SUHGLFWSHDFHYLFWRU\ORVVGDPDJHDVVLVWDQFHDQGIURPZKHQFHWKH DVVLVWDQFHLVWREHH[SHFWHGDQGIURPZKDWNLQGRIPHQ   

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
ILIWHHQWKDQGRQHDQGWZHQWLHWKLQWKHWKLUGTXDUWHU,IEHWZHHQWKDWDQG WKHHQGLQWKHODVWTXDUWHUDQGODWHUHQGRIWKH\HDU,QOLNHPDQQHUMXGJH RIWKHPRQWKVGD\VDQGKRXUV   7KH$QFLHQWVDPRQJVWRWKHUFXULRVLWLHVLQWKLVQDWXUHKDYHJLYHQ WKHVH UXOHV IRU WKH NQRZLQJ ZKHWKHU WKH *HQHUDO RU FKLHI &RPPDQGHU RI WKH HQHPLHV SDUW\ EH \RXQJ RU ROG KDYH UHJDUG WR WKH 6LJQLILFDWRU RI WKH DIIOLFWLQJ3ODQHWDQG6LJQLILFDWRURIWKHHQHP\DQGVHHLIWKH\EH2ULHQWDO IRUWKHQLWGHQRWHVKLP\RXQJHVSHFLDOO\LIWKHQWKH0RRQEHDOVR2ULHQWDO EXWLIWKH\EHDOO2FFLGHQWDOKHLVROGEXWLIRQHVKDOOEH2ULHQWDODQGWKH RWKHU2FFLGHQWDOKHLVQHLWKHU\RXQJQRUYHU\ROGEXWRIDPLGGOHDJH  , VKDOO KHUH QRZ FRQFOXGH WKLV &KDSWHU ZLWK WKLV QRWH WKDW DOO TXDUUHOV DQG EORRGVKHGV WKDW KDSSHQ LQ WKH :RUOG DUH JHQHUDOO\ RFFDVLRQHG E\ 0DUV EHFDXVH ZKHQ KH HQWHUV DQ\ DQJOH HVSHFLDOO\ WKH IRXUWK KH VLJQLILHV WKHUH VKDOO EH PDQ\ TXDUUHOV DQG ZDUV DQG JUHDW VODXJKWHUV DQG HIIXVLRQ RI EORRG DQG WKDW PHQ VKDOO GHOLJKW WR NLOO RQH DQRWKHU  



&+$39,,2I)HUWLOLW\DQG6WHULOLW\

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

  :KHWKHUWKHHQHPLHV*HQHUDOEH\RXQJRUROG   +RZWRMXGJHRISOHQW\ LQDQ\\HDU   2IVFDUFLW\RUGHDUWK   

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





&+$39,,,7HDFKLQJKRZWRNQRZWKHSULFHRIDQ\WKLQJLQDQ\
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



&+$3,;&RQWDLQLQJVRPH,QVWUXFWLRQVWRXFKLQJWKHDOWHUDWLRQRIWKH $LUDQGFKDQJHRIZHDWKHULQDQ\


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

 

M K



V G

^

M K V G

9 0 [ & Q E

7R 

7R 

7R 

Y P ; F 1 %

^

2IWKHVH RSSRVLWHXQWR WKHPRUWKH\WR WKHVHRUDQ\ 3ODQHW WUDQVODWLQJWKH OLJKWRIHDFKWR WKHRWKHU 

I J 6

I J 6

,VDQRSHQLQJRI *DWHVIRUWKDW WKHLU+RXVHV DUHRSSRVLWHWKH RQHWRWKH  2WKHUYL] 

 

M UXOHV9 DQG 0 DQG IYDQGP  K [ DQG &  J ; DQGF  VQ  G E 6 1 DQG% DFFRUGLQJDV\RXPD\VHH WKHPSODFHG 

6RWKDWWKH3ODQHWIURPZKRPDQ\3ODQHWVHSDUDWHVRSHQVWKH*DWHVRIWKH RWKHUWRZKRPKHDSSOLHVDVLIIURP-XSLWHUWR0HUFXU\RUWKH\EHLQHDFK RWKHUV$VSHFWWKH\UDLVHILHUFH1RUWKZLQGV,I0DUVDQG9HQXVDFFRUGLQJ WR WKH VHDVRQ DQG SODFH DQG VLJQV WKH\DUHLQWKH\VKDOOGHQRWHUDLQKDLO VQRZDQGWKXQGHU,IWKH6XQDQG6DWXUQGDUN$LUPDQ\FORXGVDQGPXFK ZHW F    :KDWRSHQLQJRI*DWHVLV   ,QWKHVL[KXQGUHG WK\HDURI1RDK VOLIHLQWKHVHFRQGPRQWKWKHVHYHQWHHQWK GD\RIWKHPRQWKWKHVDPHGD\ZHUHDOOWKHIRXQWDLQVRIWKHJUHDWGHHSEURNHQXS DQGWKHJDWHVRIKHDYHQZHUHRSHQHG   



&+$3;6KRZLQJKRZWRMXGJHRIWKHZHDWKHUE\WKH$VSHFWVRIWKH 0RRQWRWKHRWKHU3ODQHWVDQGE\WKHVHYHUDO$VSHFWVRIWKH3ODQHWV DPRQJVWWKHPVHOYHV

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

6SULQJ6XPPHU$XWXPQDQG:LQWHUSURPLVHVJUHDWZLQGVDQGVRPHWLPHV UDLQ  6DWXUQ LQ&RQMXQFWLRQ6TXDUHRU2SSRVLWLRQRIWKH6XQLQWKH6SULQJ GHQRWHV FROG UDLQ RU KDLO LQ 6XPPHU PXFK UDLQ WKXQGHU DQG OLJKWQLQJ DFFRUGLQJ WR WKH QDWXUH RI WKH VLJQ ,Q $XWXPQ WHPSHVWXRXV VWRUP\ ZHDWKHUDQGLQZLQWHUJULHYRXVFROGDQGVQRZ\VODEE\ZHDWKHU  6DWXUQLQ&RQMXQFWLRQ6TXDUHRU2SSRVLWLRQRI9HQXVSURPLVHVLQWKH 6SULQJUDLQDQGFROGLQ6XPPHUVXGGHQFROGLQ$XWXPQPXFKUDLQDQGLQ :LQWHUUDLQDQGVQRZHVSHFLDOO\LILQWKHVHWLPHVWKHVLJQEHZDWHU\EXWLI RWKHUZLVHMXGJHDFFRUGLQJWRGLVFUHWLRQDQGWKHQDWXUHWKHUHRI  6DWXUQLQ&RQMXQFWLRQ6TXDUHRU2SSRVLWLRQRI0HUFXU\VLJQLILHVZLQGV DQG UDLQ LQ WKH 6SULQJ HVSHFLDOO\ LQ ZDWHU\ DQG DLU\ VLJQV DV DOVR LQ 6XPPHUZLQGDQGVKRZHUVEXWLIWKH\EHLQILHU\VLJQVWKXQGHUOLJKWQLQJ DQG UDLQ ,Q $XWXPQ ZLQG DQG FROG DFFRUGLQJ WR WKH QDWXUH RI WKH VLJQ DQGLQ:LQWHUFROGDQGVQRZ   -XSLWHULQOLNHPDQQHULQ&RQMXQFWLRQ6TXDUHRU2SSRVLWLRQRI0DUV VKRZV WKH 6SULQJ WR EH ZLQG\ DQG WHPSHVWXRXV D WKXQGHULQJ DQG OLJKWQLQJ6XPPHUUDLQDQGVWRUPVLQ$XWXPQDQGLQ:LQWHUFROGVQRZV DQGVKDUSZLQGVDFFRUGLQJWRWKHQDWXUHRIWKHVLJQ  -XSLWHU LQ &RQMXQFWLRQ 6TXDUH RU2SSRVLWLRQ RI WKH6XQ LQ WKH 6SULQJ VLJQLILHV KLJK ZLQGV LQ 6XPPHU WKXQGHU DQG OLJKWQLQJ DQG LQ $XWXPQ YHKHPHQWZLQGVDQGYHU\GU\FROGIURVW\ZHDWKHULQ:LQWHUIRUWKHPRVW SDUWWKH\VLJQLI\WKXVLQHYHU\VLJQ  -XSLWHU LQ &RQMXQFWLRQ 6TXDUH RU 2SSRVLWLRQ RI 9HQXV VKRZV D WHPSHUDWH$LUDFFRUGLQJWRWKHQDWXUHRIWKHVHDVRQDOOWKH\HDUORQJ\HWLI WKH\EHLQZDWHU\VLJQVWKH\ZLOOLQFOLQHVRPHZKDWWRPL]]OLQJVKRZHUV  -XSLWHULQ&RQMXQFWLRQ6TXDUHRU2SSRVLWLRQRI0HUFXU\GHQRWHVJUHDW DQGYHKHPHQWZLQGVLQHYHU\TXDUWHUWKH\DUHVRDVSHFWHGLILQDLU\VLJQV ,QZDWHU\UDLQ,QILHU\WKXQGHUDQGOLJKWQLQJEXWRIQRJUHDWFRQWLQXDQFH   K LQTW RUSRIVLQILHU\VLJQVSURPLVHVGURXJKWLQ6XPPHULQ WKH6SULQJDGU\$LUDOVRLQ$XWXPQDQGLQ:LQWHUIURVWLQZDWHU\VLJQV VKRZHUV LQ WKH 6SULQJ 6XPPHU WKXQGHU DQG UDLQ DQG LQ $XWXPQ VKRZHUVLQ:LQWHUUDLQDQGFROG  K LQTW RUSRIJLQWKH6SULQJFDXVHVVXGGHQJUHDWDQGYLROHQW UDLQV7HPSHVWVLQ$XWXPQDQGLQ6XPPHUEXWLILQILHU\VLJQVRULQHDFK RWKHUVKRXVHJUHDWWKXQGHUVDQGOLJKWQLQJV  K LQ T W RU S ZLWK I LQ ILHU\ VLJQV FDXVHV KHDW DQG GURXJKW LQ 6XPPHU UDLQ LQ ZDWHU\ VLJQV DQG VRPHWLPHV WKXQGHU DQG OLJKWQLQJV LQ $XWXPQDQG:LQWHUVXGGHQJUHDWZLQGVDOVRFROGLQ:LQWHU   2I-XSLWHU 

 



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



&+$3;,'HPRQVWUDWLQJWKHDOWHUDWLRQRIWKH$LUE\WKH&RPEXVWLRQ 2ULHQWDOLW\DQG2FFLGHQWDOLW\RIWKH3ODQHWVLQHYHU\RIWKH6LJQV



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

  2IWKH6XQ  2I9HQXV  6DWXUQ

 

 ,Q % &RPEXVW GHQRWHV D GDUN REVFXUH $LU ZLWK 6RXWK ZLQGV 2FFLGHQWDOFROG2ULHQWDO1RUWKZLQGV  ,Q1&RPEXVWFROG$LU2FFLGHQWDOWHPSHVWV2ULHQWDOUDLQ  ,Q0&RPEXVWFORXGV2FFLGHQWDOUDLQ2ULHQWDODPRUHWHPSHUDWH $LU M LQ[&RPEXVWLVDWRNHQRIUDLQEHLQJ2FFLGHQWDOKHFDXVHV FORXGVDQG2ULHQWDOIDLUZHDWKHU  ,Q F &RPEXVW LQGLIIHUHQW ZHDWKHU 2FFLGHQWDO SOHDVDQW VKRZHUV 2ULHQWDOFORVHFDOPZHDWKHU  ,QY&RPEXVW2FFLGHQWDORU2ULHQWDOIDLUWHPSHUDWHZHDWKHU  ,QE &RPEXVW 2FFLGHQWDO RU 2ULHQWDO EULQJV D FDOPDQGSOHDVDQW $LU  ,Q/HR&RPEXVW2FFLGHQWDORU2ULHQWDOSOHDVDQWZLQGV  ,Q9LUJR&RPEXVW2FFLGHQWDORU2ULHQWDOFDXVHVZHDWKHUILWIRUWKH SURGXFWLRQRIVHHGDQGWKHIUXLWVRIWKH(DUWK  ,Q/LEUD&RPEXVW2FFLGHQWDORU2ULHQWDOLQGLIIHUHQWZHDWKHU  ,Q6FRUSLR&RPEXVWUDLQ2FFLGHQWDOELWWHUZHDWKHU2ULHQWDOPRUH WHPSHUDWH  ,Q 6DJLWWDULXV &RPEXVW PXFK UDLQ 2FFLGHQWDO ZRUVH ZHDWKHU 2ULHQWDOEHWWHU  ,Q &DSULFRUQ &RPEXVW PRLVW $LU 2FFLGHQWDO LW LV ZRUVH 2ULHQWDO EHWWHU  ,Q$TXDULXV&RPEXVWDQG2FFLGHQWDOUDLQ2ULHQWDOIDLU  ,Q3LVFHV&RPEXVW2FFLGHQWDODQG2ULHQWDOFDOPZLQGV    0DUVLQ$ULHV&RPEXVWDQG2FFLGHQWDOEDGZHDWKHU2ULHQWDOWKH FRQWUDU\  ,Q7DXUXV&RPEXVWDTXLHW$LU2FFLGHQWDOVWRUP\2ULHQWDOZLQG\ ,Q*HPLQL&RPEXVWDQG2FFLGHQWDOKHDW2ULHQWDOVRPHZKDWPRUH WHPSHUDWH  ,Q &DQFHU &RPEXVW DQG 2FFLGHQWDO JUHDW KHDW 2ULHQWDO QRW VR YLROHQW 2076

  -XSLWHU  0DUV

 

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

&+$3;,,&RQWDLQLQJIXUWKHU,QVWUXFWLRQVWRXFKLQJWKHDOWHUDWLRQRI WKH$LUIURPWKHDSSOLFDWLRQRIWKH0RRQWRWKHRWKHU3ODQHWVKDYLQJ VHSDUDWHGIURPWKH&RQMXQFWLRQRU2SSRVLWLRQRIWKH6XQ

 (QGHDYRXU \RX EXW WR XQGHUVWDQG WKLV &KDSWHU ZHOO DQG \RX VKDOO EH VXIILFLHQWO\IXUQLVKHGZLWKDELOLW\WRMXGJHRIWKHZHDWKHUIRUHYHU\PRQWK   0HUFXU\ 

 

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

  7R0DUV  7RWKH6XQ  7R9HQXV  7R0HUFXU\   

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







&+$3;,,,7HDFKLQJE\RWKHU5XOHVKRZWRMXGJHRIWKHDOWHUDWLRQRI WKH$LUDQGWRNQRZZKHQ5DLQLVWREHH[SHFWHG


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
  2UGLQDU\VLJQVRIWKHPXWDWLRQRIZHDWKHURUWRNHQVRIUDLQ   



&+$3;,96KRZLQJ+DO\KLVMXGJHPHQWRQ:HDWKHUDQGWKH DOWHUDWLRQRIWKH$LU

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

  +RZWRMXGJHRIWKHDOWHUDWLRQRIWKHDLUDWDQ\WLP HRI\HDU  

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
&XVSWKHUHRIDQGPDNHKLP6LJQLILFDWRURIWKHVWDWHRIWKHZHDWKHUGXULQJ WKH WLPH WKH 0RRQ LV LQ WKDW VLJQ DQG DFFRUGLQJ WR KLV VWUHQJWK DQG &RQILJXUDWLRQVZLWKWKHRWKHU3ODQHWVMXGJHDV\RXKDYHKHDUGDFFRUGLQJWR GLVFUHWLRQ   7KXVKDYH\RXEHHQWDXJKWWKHDOWHUDWLRQRIWKH$LUIRUDQ\WLPH RI WKH
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



&+$3;96KRZLQJKRZWRMXGJHRI:HDWKHUIURPFRPPRQ 2EVHUYDWLRQRIWKHULVLQJDQGVHWWLQJRIWKH6XQFRORXURIWKH0RRQ DSSHDUDQFHRIWKH5DLQERZ&RPHWV&ORXGV%ULJKWQHVVRIWKHIL[HG 6WDUVDOVRE\WKHSULPHGD\DQGIURPWKHWLPHRIWKHGD\ZKHUHLQ 7KXQGHUKDSSHQV

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

OLNH KLOOV DQG VRPHZKDW DERYH WKH (DUWK LW VKRZV ZHDWKHU RYHUSDVVHG EODFNFORXGVSURPLVHUDLQZKLWHFORXGVDSSHDULQJLQ:LQWHUWZRRUWKUHH GD\VWRJHWKHULQWKH(DVWSDUWRI+HDYHQVKRZVFROGDQGVQRZ   :KHQWKH6WDUVVHHPWRIDOOZKLFKZHYXOJDUO\WHUPVKRRWLQJRI WKH6WDUVLWSUHQRWHVZLQGLQWKDWSDUWEXWLIWKH\VKRRWLQPDQ\SODFHVRU SHUKDSV DOO RYHU WKH +HDYHQV ,QRUGLQDWH ZLQGV WKXQGHU OLJKWQLQJVDQG YHU\ WHPSHVWXRXV ZHDWKHU DQG ZKHQ WKH\ VHHP WR UXQ DORQJ RXW RI RQH SODFH LQWR DQRWKHU LW GHQRWHV ZLQG DQG WKDWWKHZHDWKHUVKDOODOWHUIURP WKHWHPSHUZKHUHLQLWLVLIEXWIHZDSSHDUDQGWKRVHREVFXUHDQGFORXG\ DOVR LI WKH\ DW DQ\ WLPH VHHP JUHDWHU DQG EULJKWHU WKHQ XVXDO LW GHQRWHV ZLQG DQG UDLQ LQ WKHVH SDUWV ZKHUH \RX VHH VXFK 6WDUV DSSHDU DQG LQ :LQWHUWKH\SUHVDJHIURVWVVQRZDQGFROGZHDWKHUEXWKHUHLQXQOHVV\RX DUW ZHOO DFTXDLQWHG ZLWK WKHLU 1DWXUDO PDJQLWXGHV \RX PD\ EH GHFHLYHG DQGFDQQHYHUEHSHUIHFW   $JDLQ\RXPD\MXGJHRIWKHZHDWKHUE\WKHSULPHGD\WKXVLILW EH 0RQGD\ MXGJH PRLVW ZHDWKHU 7XHVGD\ ZLQG\ DQG FROG :HGQHVGD\ YHU\FROG7KXUVGD\IDLUDQGFOHDU)ULGD\PL[HGZHDWKHU6DWXUGD\PRLVW DQG6XQGD\GU\   7KXQGHU LQ WKH 0RUQLQJ DOVR GHQRWHV ZLQG DERXW 1RRQ LQ WKH (YHQLQJ UDLQ DQG WHPSHVW 7KXQGHU DOVR LQ WKH :LQWHU VKRZV WHUULEOH DFFLGHQWVDQGDOWHUDWLRQVWKH6XPPHUIROORZLQJZKHQFHWKHROG3URYHUE$ :LQWHUV7KXQGHULVD6XPPHUVZRQGHUDOVRZKHQLQDQ\6XPPHU\RXILQGQR 7KXQGHU WKH :LQWHUIROORZLQJZLOOEHYHU\XQKHDOWKIXODQGREQR[LRXVWR DOOFUHDWXUHV  $QGWKXVPXFKRIWKHDOWHUDWLRQRIWKH$LUDQGFKDQJHRIZHDWKHU &RPH ZH QRZ WR VKRZ VRPH QDWXUDO UHDVRQV IRU VXFK WKLQJV DV DUH FRPPRQO\ LQFLGHQW DPRQJVW XV DQG \HW WKHLU FDXVH E\ PDQ\ XQNQRZQ DQGVRKDVWHQWRFRQFOXGHWKLV6HFWLRQ 





&+$3;9,'HPRQVWUDWLQJWKH1DWXUDOFDXVHRIPDQ\6XQVRIWKH 5DLQERZ5DLQ+DLO)URVW6QRZ'HZ:LQG(DUWKTXDNHV&RPHWV 7KXQGHUV/LJKWQLQJVDQGWKHFDXVHRIWKH6XQDQGWKH0RRQV(FOLSVH

/HDYLQJQRZRXU$VWURORJLFDO'LVFRXUVH,VKDOOKHUHDOLWWOHVWHSRXWRIWKH ZD\ DQG VKRZ P\ 5HDGHU ZKR KDV QRW ZDGHG IDU LQWR WKH 2FHDQ RI 1DWXUH ZKDW +DLO 6QRZ 'HZ :LQG DQG WKH 5DLQERZ LV DQG KRZ LW FRPHVWRSDVVZHKDYHPDQ\6XQVVRPHWLPHVYLVLEOHDQG0RRQVDOVRZKDW 7KXQGHUDQG/LJKWQLQJLVDQGKRZZHFRPHWRKDYHVXFKVWUDQJHDQGQHZ 6WDUV DV DUH &RPHWV DQG WKH OLNH DQG KRZ WKH6XQ DQG WKH0RRQ EHFRPH VRPHWLPHV HFOLSVHG RU GDUNHQHG WKDW VR KH PD\ QRW EH WR VHHN LQ WKHVH   %\VWDUV  %\WKH3ULPH'D\   %\7KXQGHU   

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

 

RIWKH/XPLQDULHVRUYXOJDUO\DWWKH)XOO0RRQDQGWUXO\WKLVGHIHFWRIWKH /XPLQDULHV ZRXOG KDSSHQ HYHU\ FKDQJH DQG IXOO GLG QRW WKH 0RRQ VRPHWLPH GHYLDWH IURP WKH (FOLSWLF OLQH ILYH GHJUHHV 1RUWKZDUG DV DOVR VRPHWLPHV DJDLQ DV IDU 6RXWKZDUG DQG WKHUHIRUH FDQQRW VR GLUHFWO\ PHHW ZLWK WKH &RQMXQFWLRQ DQG 2SSRVLWLRQ RI WKH 6XQ ZKR HYHU PRYHV LQ WKH (FOLSWLFOLQHRUMXVWXQGHULW 





&+$3;9,,2IWKH6LJQLILFDWLRQRIWKHPRVWQRWDEOHIL[HG6WDUVERWK IRUWXQDWHDQGXQIRUWXQDWHLQDQ\RIWKHWZHOYH+RXVHVLQ5HYROXWLRQV RIWKH
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

  ,QWKHWKLUG  ,QWKHIRXUWK  ,QWKHILIWK  ,QWKHVL[WK  ,QWKHVHYHQWK  ,QWKHHLJKWK  

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

9HQXVDQG0HUFXU\DQGRIWKHQDWXUHRI0HUFXU\RQO\HVSHFLDOO\LIDVVLVWHG E\WKHEHQHYROHQW$VSHFWVRIWKH)RUWXQHV  $QG WKXV PXFK VKDOO VXIILFH IRU ,QVWUXFWLRQ LQ WKH MXGJLQJ RI WKH $QQXDO 5HYROXWLRQV RI WKH ZRUOG OHW XV QRZ GHVFHQGWR(FOLSVHVDQGVR KDVWHQWRDFRQFOXVLRQRIWKHVHRXUODERXUV 



 6(&7,21,97HDFKLQJKRZWRMXGJHRIWKH1DWXUDO0XWDWLRQVDQG $FFLGHQWVRIWKLV(OHPHQWDU\:RUOGE\WKHDSSHDUDQFHRI(FOLSVHV &RPHWVJUHDW&RQMXQFWLRQVDQG%OD]LQJ6WDUV



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
&RQILJXUDWLRQZLWKWKH/RUGRIWKH$VFHQGDQWDWWKHWLPHRIWKHPLGGOH RIWKH(FOLSVHZKLFK\RXDUHWRNQRZLVWKHWLPHZKHUHLQ\RXDUHWRHUHFW \RXU6FKHPHRU)LJXUHRIWKH+HDYHQVIRUWKHMXGJLQJRIWKH(IIHFWVRIDQ\ (FOLSVH RUZLWKWKH/RUGRIWKH
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
 

,Q7DXUXV6FRUSLR/HRDQG$TXDULXVUXLQRIKRXVHVDQGDQFLHQW EXLOGLQJVGLYLVLRQVDQGKDWUHGDPRQJVWWKH&OHUJ\DQGWKH\VKDOOH[FLWH 7XPXOWV  /HWXVQRZFRPHWR3WROHP\·V0HWKRGLQMXGJLQJRI(FOLSVHVZKLFK KHEHJLQVLQ&KDSRIKLV%RRNRIKLV4XDGULSDUWLWHDIWHUWKLVPDQQHU  

&+$3,&RQWDLQLQJ3WROHP\·VPHWKRGLQMXGJLQJ(FOLSVHVDQGKRZWR NQRZWKH5HJLRQVWRZKLFKWKH(IIHFWVEHORQJ



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

&+$3,,6KRZLQJWKHWLPHZKHQWKH(IIHFWVRIDQ\(FOLSVHVKDOO EHJLQ DQGKRZORQJFRQWLQXH



0DQ\ PHQ , NQRZ ZRQGHU ZK\ $VWURORJHUV KDYH WDXJKW WKDW (FOLSVHV RSHUDWHQRWWLOOVXFKDWLPHDIWHUWKHLUDSSHDUDQFHEXWWKH\KDYHEXWVPDOO   ,QIL[HG  )RXUWKLQJVWREHFRQVLGHUHGLQMXGJLQJRI(FOLSVHV   

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

PDQ\ PRQWKVZKHUHIRUHWKHEHJLQQLQJRIWKHP\RXVKDOONQRZIURPWKH SODFHZKHUHWKH(FOLSVHIDOOVDQGWKH$QJOHVRIWKHILJXUHDWWKDWWLPH   

&+$3,,,2IWKHNLQGVRIWKH(YHQWVRIDQ\(FOLSVH

,QWKHWKLUGSODFH\RXNQRZWKHNLQGVRIWKH(YHQWVRIDQ\(FOLSVHDUHWREH FRQVLGHUHG ZKLFKLVNQRZQIURPWKHTXDOLWLHVDQGVLJQVEHORQJLQJWRWKH VLJQVLQZKLFKHLWKHURIWKH/XPLQDULHVDUHHFOLSVHGDQGIURPWKHSODFHVRU VLJQVLQZKLFKWKH3ODQHWVDQGPRVWQRWDEOHIL[HG6WDUVDUHWKHZKLFKZLWK WKHVLJQRIWKH(FOLSVHRUWKH6LJQZKHUHLQWKH(FOLSVHLV DQGWKHVLJQRI WKH$QJOHSUHFHGLQJWKH(FOLSVHLVWREHFRQVLGHUHG   7RNQRZWKH3ODQHWWKDWVKDOOEHDUFKLHIUXOHRIWKHVHWZRSODFHVÅ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

  7KHSRUWHQFHRIDQ(FOLSVHLQ7URSLFDORU(TXLQRFWDOVLJQV   ,QWKHTXDUWHUVRI+HDYHQ   7RNQRZWKHJUHDWQHVVRIWKH(YHQWVRIDQ\(FOLSVH   ´$QG*RGPDGHWZRJUHDWOLJKWVWKHJUHDWHUOLJKWWRUXOHWKHGD\DQGWKHOHVVHU OLJKWWRUXOHWKHQLJKWKHPDGHWKHVWDUVDOVRµ   

&+$3,92IWKHTXDOLW\RIWKH(YHQWVRIDQ\(FOLSVHZKHWKHU*RRGRU (YLO



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

  +RZWRNQRZWKHQDWXUHDQGTXDOLW\RIWKH(YHQWVRIDQ\(FOLSVHZKHWKHUJRRGRUHYLO   2I6DWXUQZKHQKHLVFKLHI5XOHUDQG KLVVLJQLILFDWLRQVLQJHQHUDO   

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

&+$392IWKH6XQDQG0RRQ(FOLSVHGLQDQ\'HFDQDWHRU)DFHRIWKH WZHOYH&HOHVWLDO6LJQV



'LYHUVHUXOHVKDYH,EHIRUHGHOLYHUHGXQWR\RXZKLFK,FROOHFWHGRXWRI -XQFWLQXVZKHUHIRUHQRZIRUFRQFOXVLRQRIWKLVSRLQW,WKRXJKWJRRGWR

 

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

  F  F  Y  Y  Y  E  E  E  Q  Q  Q

 



,QWKHVHFRQG)DPLQH3HVWLOHQFHDQGGHDGO\6HGLWLRQV





,QWKHWKLUGWR3LFWXUHV3RHWVDQG0HUFKDQWVDQGVXFKDVOLYHE\ WKHLU,QJHQXLW\DQGZLWVODXJKWHUVGHVWUXFWLRQEDQLVKPHQWDQGWKHOLNH   ,IDQ(FOLSVHRIWKH6XQEHLQWKHILUVW)DFHRI/LEUDLWFRUUXSWVWKH $LUFDXVHVWKH3HVWLOHQFHDQGDVFDUFLW\DQGGHDUQHVVRI&RUQ   ,QWKHVHFRQGSRUWHQGVWKHGHDWKRIVRPH*UHDW.LQJXQGHUWKH 'RPLQLRQRI/LEUD6HGLWLRQVDQG)DPLQH   ,QWKHWKLUGGLVFRUGVDPRQJVW*UHDWRQHVDQGGHWULPHQWLQWKHLU HVWDWHV   $OVRLIDQ(FOLSVHEHLQWKHILUVW)DFHRI6FRUSLRLWPRYHVDQGVWLUV XS:DUVDQGWXPXOWVVODXJKWHUKDWUHGFDSWLYLWLHVSORWVDQGWUHDFKHULHV   ,Q WKH VHFRQG PLVFKLHI WR VRPH .LQJ ZKRVH PLQG LV DYHUVH WR ZDU   ,QWKHWKLUGWKHULVHRIVRPHW\UDQWWKHVORWKIXOQHVVDQGLGOHQHVV RIWKHIRUPHU.LQJKDWHIXOWRHYHU\RQH   ,QWKHILUVW)DFHRU'HFDQDWHRI6DJLWWDULXVLIDQ(FOLSVHRIWKH6XQ EHLWVKRZVJULHYRXVGLVVHQWLRQVDQGGHDGO\IHXGVDPRQJVWPHQ   ,Q WKH VHFRQG WKH GHDWK RI&DPHOVDQGVXFK&DWWOHDVFKHZWKH FXGHVSHFLDOO\WKHJUHDWHUVRUW DQGVXFKOLNH   ,QWKHWKLUGSUHMXGLFHWR+RUVHVDQG$UPLHV   $JDLQ DQ (FOLSVH RIWKH6XQLQWKHILUVW'HFDQDWHRI&DSULFRUQLW GHQRWHV XQKDSSLQHVV DQG FKDQFHV WR *UHDW PHQ WKH WUDQVPLJUDWLRQ RI VRPH.LQJDQGWKH5HEHOOLRQRIWKH1REOHVDQGUXVWLFV   ,Q WKH VHFRQG KLUHG VROGLHUV DUH H[FLWHG DQG DQLPDWHG DJDLQVW WKHLU&RPPDQGHUVDQG6XSHULRUVDQGIUXVWUDWHVDOOWKHLUGHYLFHV 

  P  P  P  ;  ;  ;  &  &  &  9  9  9  %  



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

  %  %  1  1  1  0  0  0  [  [  [  F  F  

,QWKHWKLUGVKHVKRZVFUXHOW\RQ6HUSHQWVDQGVXFKOLNH





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

  F  Y  Y  Y  E  E  E  Q  Q  Q  P  P  P

 



,QWKHVHFRQGPLVFKLHIDQGWURXEOHWRHYHU\RQH





,QWKHWKLUGGHDWKWRVRPHIDPRXVDQGLOOXVWULRXVPHQ





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

  ;  ;  ;  &  &  &  9  9  9  %  %  %  1  1  



/DVWO\WKH0RRQHFOLSVHGLQWKHILUVWIDFHRI3LVFHVEULQJVVDGQHVV DQGDQ[LHW\WRWKRVHZHFDOO3ULHVWVDQG5HOLJLRXV+RXVHV   ,QWKHVHFRQGWKHGHDWKRIVRPHJUHDWDQG,OOXVWULRXV3HUVRQ   ,QWKHWKLUGWKHIWVUDSLQHVUREEHULHVE\/DQGDQGSLUDFLHVDQG WURXEOHVE\6HD  $QG WKXV PXFK VKDOO VXIILFH WR EH VDLG RI (FOLSVHV DW WKLV WLPH KHUHDIWHU*RGVSDULQJPHOLIHDQGOHLVXUHIURPP\RWKHUVWXGLHVSHUKDSV, PD\PDNHVRPHDGGLWLRQWKHUHXQWRLI,ILQGWKHSUHVHQWDJHZRUWK\WKHUHRI /HWXVQRZSURFHHG   



&+$39,2I&RPHWVDQG%OD]LQJ6WDUVZKDWWKH\DUHWKHPDQ\ VRUWVWKHUHRIWKHLU3RUWHQFHVDQGKRZORQJWKH\DSSHDUDWDQ\WLPH

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

  1  0  0  0  :KDWD&RPHWLV   7KHQDPHWKHUHRI   'LYHUVHIRUPVRIFRPHWVRU%OD]LQJ6WDUV   -DYHOLQ   

7KHWKLUG&QHLF"ZKLFKLVWKHVDPHDVLVWKHIRUPHUVDYHRQO\WKH\ DUH VKRUWHU DQG VKDUSHUSRLQWHG DWWKHWRSWKHQWKHRWKHUDQGSDOHOLNHD VZRUGDQGZLWKRXWUD\V  7KH IRXUWK :LRFI GLVFXV D GLVK RU SODWWHU WKLV &RPHWLWVVRFDOOHG IRUWKDWLWLVURXQGUHVHPEOLQJDGLVK\HWQRZDQGWKHQLWSXWVIRUWKRQHRI WKHEULPVWKHUHRI  7KHILIWKKLVF\3LWKHXVDQGWKLVLVLQIRUPOLNHD7XQHQYLURQHG LQDVPRN\OLJKW  7KHVL[WK0!.."&HUDWLDVWKXVFDOOHGIRUWKDWLWUHVHPEOHVDQKRUQ DQGVXFKDRQH3OLQ\WHVWLILHVDSSHDUHGZKHQWKHZKROHPDQKRRGRI*UHHFH IRXJKWWKHEDWWOHRI6DODPLV  7KH VHYHQWK ODPNP" ODPSDV D ODPS"LX VSOHQGHR WR VKLQH OLNH D ODPSDQGWKHUHIRUHKDVLWWKLVQDPH  7KH HLJKWK LSPX" +LSSHXV WKLV HPLWV VWUHDPV OLNH XQWR DQ +RUVH PDLQDQGWKHUHIRUHLWLVWKXVFDOOHGWKLVLVVZLIWLQPRWLRQDQGRIWHQWXUQV URXQGDVVD\V3OLQ\  $QLQWKKHUHFRUGVWREHZKLWHDQGEULJKWOLNHVLOYHUKDLUDQGRIWKDW VSOHQGRXUWKDWDPDQLVKDUGO\DEOHWREHKROGLWDQGRWKHUVEHFRPHVKDJJ\ DQGFRPSDVVHGDVLWZHUHZLWKKDLURUIULQJHURXQGDERXW   7KH\ DUH LQ D PDQQHU DOO VHHQ XQGHU WKH *UHDW %HDU RU WKDW FRQVWHOODWLRQZKLFKZHYXOJDUO\FDOO&KDUOHPDJQH·V:DLQRU&KDUOHVKLV:DLQ \HWVRPHKDYHEHHQGLVFHUQHGWRDSSHDULQWKDWZKLWHSDUWRIWKH+HDYHQ FDOOHGFRPPRQO\WKH0LON\:D\IURPWKHILFWLRQVRIWKH3RHWWKH\GHQRWH PDQ\ERLVWHURXVZLQGVDQGH[FHVVLYHKHDWVHOGRPDUHDQ\VHHQLQWKH:HVW SDUWRI+HDYHQEXWDERXWWKH6RXWKRU$QWDUFWLF3ROHVRPHKDYHEHHQVHHQ DV3OLQ\ LQ WKH VDPH DIRUHVDLG &KDSWHU WHVWLILHV WR ZKRP , KHUHUHIHU\RX ZKHUH \RX VKDOO ILQG ZKDW 3URGLJLHV WKH\ ZHUHWKHIRUHUXQQHUVRILQWKH WLPHRI&ODXGLXV&DHVDU3RPSH\DQG2FWDYLXVWKH&RQVXO   ,WKDVEHHQREVHUYHGDQGQRWHGE\WKHGLOLJHQWFDUHLQGXVWU\DQG SDLQV RI WKH $QFLHQWV WKDW WKH\ QHYHU DSSHDU D VKRUWHU WLPH WKHQ D VHYHQQLJKW QRU ORQJHU WKHQ  GD\V VRPH KDYH VDLG  RWKHUV  IURP 3OXWDUFKZKRQRWHGVRPXFKIURPWKH&RPHWZKLFKDSSHDUHGEHIRUHWKH   %DUUHOFDVN   *OHDPLQJ   :KHUHRULQZKDWSDUWRIWKHKHDYHQYLVXDOO\VHHQ   7KHLUFRQWLQXDQFHLQWKH+HDYHQV   3OXWDUFK ZDVD*UHHNKLVWRULDQ %RUQDW&KDHURQHD%RHWLDLQ*UHHFH GXULQJWKHUHLJQRIWKH5RPDQ(PSHURU&ODXGLXV3OXWDUFKWUDYHOOHGZLGHO\LQWKH 0HGLWHUUDQHDQZRUOGODWHUUHVLGLQJDW5RPHIRUDQH[WHQGHGSHULRGDQGPDNLQJ IULHQGVZLWKLQIOXHQWLDOSHUVRQV DW5RPHWRZKRPVRPHRIKLVODWHUZULWLQJVZHUH GHGLFDWHG5HWXUQLQJWR%RHRWLDKHZDVLQLWLDWHGLQWRWKHP\VWHULHVRIWKHJRG $SROOR+RZHYHUKLVGXWLHVDVDSULHVWRI$SROORDSSDUHQWO\RFFXSLHGOLWWOHRIKLV WLPHKHOHGDPRVWDFWLYHVRFLDODQGFLYLF OLIHLQDGGLWLRQWRKLVQXPHURXVZULWLQJV  

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
EHJUHDWHUWKHQKHDQGWKHUHIRUHVKHH[KRUWHGKLPWRZRUVKLSDQGDGRUH KLP F   +LVWRULHVDQFLHQW:ULWHUVDQGFRPPRQH[SHULHQFHLQIRUPHUDJHV WHVWLILHV XQWRXVWKDWWKHVHVLJQVLQWKH+HDYHQRUDSSHDUDQFHRI&RPHWV DUHWKHDVVXUHGIRUHUXQQHUVRIWKHVWHULOLW\RIWKH(DUWK3HVWLOHQFH)DPLQH :DU DOWHUDWLRQV RI .LQJGRPV 6WDWHV DQG (PSLUHV /DZV DQG &XVWRPV :LQGV (DUWKTXDNHV ,XQGDWLRQV H[WUHPH KHDW DQG GURXJKW JULHYRXV GLVHDVHVDQGLQILUPLWLHVDQGVXFKOLNHKRUULGHYLOV  



&+$39,,6KRZLQJWKH3K\VLFDOUHDVRQVRIWKHKRUULGDQGWHUULEOH SRUWHQFHVRI&RPHWVDQG%OD]LQJ6WDUV

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



&+$39,,,6KRZLQJVRPHRWKHUQDPHVRI&RPHWVRU%OD]LQJ6WDUV DQGWKHLU3RUWHQFHV

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

  :K\&RPHWVDUHVHHQEXWVHOGRPDQGEXWRQHDWDWLPH   $WZKDWWLPHRIWKH\HDU&RPHWVDQG%OD]LQJ6WDUVXVXDOO\DSSHDU   &RPHWVZKLWHDQGUHGDQGWKHUHDVRQWKHUHRI   



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

  7KHUHDVRQRIWKHLUVKDSHDQGIRUP   7KHGLVWLQFWVLJQLILFDWLRQVRIHYHU\&RPHWRU%O D]LQJ6WDU  $GDUWRUMDYHOLQ   $QLQVWUXPHQWFRQVLVWLQJRIDILQHVKDUSKRRNDWWDFKHGWRDKDQGOHDQGXVHG PDLQO\IRUWDNLQJXSDUWHULHVDQGWKHOLNH   6WLFNRUSROH   6KLQLQJ   6ROGLHURUZDUULRU   

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



&+$3,;2IWKHVLJQLILFDWLRQRI&RPHWVDQG%OD]LQJ6WDUV DSSURSULDWHGWRWKHVHYHQ3ODQHWV

5HFHLYHWKHVH5XOHVIROORZLQJDVIURPWKH&KDOGHDQV$UDELDQVDQGVXFKDV ZHUHYHU\H[SHUWLQWKHVHPDWWHUVLQIRUPHU$JHV   6N\FRORXUHGRUEOXH   ,QRWKHUZRUGVDQGR U  0RUQLQJHDUO\PRUQLQJ   6LOYHU  5RVH  &RDOEODFNRUGDUNEURZQWREODFN   7KHVLJQLILFDWLRQRI&RPHWVLQ(DUWK\VLJQVZDWHU\DLU\DQGILHU\   



:KHUHIRUHNQRZWKDWLIDQ\&RPHWRIWKHQDWXUHDQGFRPSOH[LRQ RI6DWXUQDSSHDULQWKH$VFHQGDQWRIWKH5HYROXWLRQRIWKH:RUOGLWGHQRWHV PDQ\ HYLOV )DPLQH 3HVWLOHQFH %DQLVKPHQW :DQW $Q[LHW\ WHUURU DQG WURXEOH &KURQLF GLVHDVHV DQG 0HODQFKRO\ GLVWHPSHUV &DWDUUKV 4XDUWDQ $JXHV )DOOLQJ 6LFNQHVV /HSURVLHV 3DOVLHV &DQFHUV DQG WKRVH GLVHDVHV ZKLFK DUH RI FRQWLQXDQFH OLQJHULQJ &RQVXPSWLRQV DQG WKH OLNH GHVWUXFWLRQWR%HDVWVDSSHUWDLQLQJWRWKHXVHRIPDQH[FHVVLYHFROGZHDWKHU LQZLQWHUEXW\RXDUHVWLOOWRUHPHPEHUWKH1DWXUHRIWKH&OLPDWHIRUWKLV LQRUGLQDWHFROGLQ(WKLRSLDZLOOFDXVHEXWDWHPSHUDWH$LU FDQGWKHUHIRUH WKLV LV WR EH XQGHUVWRRG RI WKHVH 1RUWKHUQ SDUWV  FORXGV IURVW DQG VQRZ VWURQJDQGKLJKZLQGVWHPSHVWVVKLSZUHFNVGHVWUXFWLRQRI)LVKDVDOVRRI )UXLWE\&DWHUSLOODUV/RFXVWVDQGVXFKOLNH9HUPLQJUHDW,QXQGDWLRQVDQG VWRUPV WR WKH DQQR\DQFH RI &DWWOH DQG DOO WKLQJV 0HQ DQG .LQJGRPV XQGHU WKH 'RPLQLRQ RI6DWXUQ VKDOO VXIIHU GHWULPHQWDQGEHLQGDQJHURI GHVWUXFWLRQ   6XFKDVDUHRIDVLOYHUFRORXUEULJKWDQGRIJUHDWVSOHQGRXUDQG RI WKH QDWXUH RI -XSLWHU FDXVH D SOHQWLIXO \HDU ZKHQ WKH\ DSSHDU LQ WKH $VFHQGDQW DV \RX KDYH KHDUG  ZKROHVRPH EODVWV RI $LU ZLWK PDQ\ VHDVRQDEOH VKRZHUV HVSHFLDOO\ LI LW EH D ZDWHU\ VLJQ LW GHQRWHV DOVR VXFK LQILUPLWLHV DV DUH RI WKH QDWXUH RI -XSLWHU ZKLFK \RX KDYH KHDUG LQ WKLV VHFRQG %RRN RI WKLV 9ROXPH  DQG PDQ\ DOWHUDWLRQV DQG FKDQJHV LQ VXFK .LQJGRPV 5HJLRQV DQG 3ODFHV VXEMHFW XQWR KLP WKH ZKLFK , KDYH WKHUH DOVRDWODUJHVHWGRZQ   7KRVH&RPHWVZKLFK\RXKDYHKHDUGZHKDYHXQGHUVWRRGE\WKH QDPHVRI9HUXDQG3HUWLFDDUHRIWKHQDWXUHRI0DUVZKHUHIRUHWKH\GHQRWH KRUULEOH ZLQGV VWRUPV DQG WHPSHVWV D GURXJKW RI )RXQWDLQV DQG D GHVWUXFWLRQRI)UXLWE\FRUUXSWLRQDQGDOOWKHGLVHDVHVSRUWHQGHGE\0DUV FIUHTXHQW7KXQGHULQJDQG/LJKWQLQJVWRWKHGHVWUXFWLRQRIPDQ\6KLSV DW6HDZUDWKTXDUUHOVKHDUWEXPLQJVVODXJKWHUVDQGEORRGVKHGDPRQJVW PHQ WXPXOWV VHGLWLRQV DQG ZDUV DOWHUDWLRQV RI .LQJGRPV /DZV *RYHUQPHQWDQG&XVWRPVDQGVXFKOLNHHYLOVDSSURSULDWHGWRWKHQDWXUHRI 0DUV DQG WKH\ VKDOO FKLHIO\ EH LQFLGHQW WR VXFK PHQ DV DUH XQGHU KLV 'RPLQLRQ 7RZQV &LWLHV .LQJGRPV DQG 3ODFHV DV DOVR WR WKRVH SDUWV WRZDUGVZKLFKWKH&RPHWH[WHQGVLWVWDLODV\RXKDYHKHDUG   &RPHWV DQG %OD]LQJ6WDUV RI WKH QDWXUH DQG FRPSOH[LRQ RI WKH 6XQGHQRWHWKHGHDWKRI.LQJV*UHDWPHQDQG1REOHVLQWKRVHSDUWVWKH\ DSSHDU DQG LQ WKDW .LQJGRP RU 1DWLRQ XQGHU WKH $VFHQGDQW RI WKDWVLJQ ZKHUHLQWKH\DSSHDUDQGIRUZKLFKWKH5HYROXWLRQLVPDGHZKHQWKH\DUH VHHQLQWKH$VFHQGDQWWKHUHRI DOVRDOWHUDWLRQVLQ*RYHUQPHQWWRWKHEHWWHU FRQWLQXDODQGGDLO\WXPXOWVDOVRZDUGURXJKWDQGVXFKLQILUPLWLHVDVDUH VRODU DQG WKRVH FKLHIO\ WR VRODU PHQ DQG WR VXFK SODFHV DV DUH XQGHU KLV 'RPLQLRQ 

  7KH3RUWHQFHVRIVXFK&RPHWVDVEHORQJWR6DWXUQ   &RPHWVWKHQDWXUHRI-XSLWHUDQGWKHLUSRUWHQ FLHV  &RPHWVRIWKHQDWXUHRI0DUVDQGWKHLUVLJQLILFDWLRQV   7KHVLJQLILFDWLRQVRIWKH6XQKLV&RPHWV   



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



&+$3;6KRZLQJWKH6LJQLILFDWLRQVRI&RPHWVZKHQWKH\DSSHDULQ DQ\RIWKHWZHOYH6LJQVRI+HDYHQ

$OEXPDVHUDQG-XQFWLQXVZLWKPDQ\RWKHUVVD\WKDWLIDQ\RIWKHDIRUHVDLG &RPHWV RU %OD]LQJ6WDUV DSSHDU LQ$ULHV LW VLJQLILHV HYLO DQG GHWULPHQW WR 1REOH PHQ DQG WKH *UDQGHHV RI WKH (DUWK LQ WKH (DVWHUQ SDUWV DQG DEXQGDQFH RI VDGQHVV WR WKH FRPPRQHU VRUW DQG WUXO\ , FRQFHLYH DOO 1DWLRQV.LQJGRPVDQG3HRSOH&LWLHV7RZQV9LOODJHVDQG)DPLOLHVXQGHU WKH VLJQ $ULHV ZLOO VXIIHU WKH VDPH  DOVR D QRLVH RI WKH FODVKLQJ RI $UPV EORRGVKHG DQG WKH GHDWK RI VRPH HPLQHQW 3ULQFH RU VODXJKWHU RI VRPH



  &RPHWVRIWKHQDWXUHRI9HQXVDQGWKHLUSRUWHQFLHV   :KDWLVVLJQLILHGE\0HUFXULDO&RPHWV   :KDWE\/XQDU   2IWKHVLJQLILFDWLRQRI&RPHWVZKHQ WKH\DSSHDULQ$ULHV   

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
  ,Q6FRUSLR   3UH\VHL]HWDNHDVSUH\DFWZLWKYRUDFLW\   ,Q6DJLWWDULXV   ,Q&DSULFRUQ   ,Q$TXDULXV   

YDULRXV UXPRXUV DQG FKLHIO\ RI ZDU DQG WKDW PDQ\ PHQ VKDOO EH LPSULVRQHGDQGFDSWLYDWHG   /DVWO\D&RPHWLQ3LVFHVVLJQLILHVZDUDPRQJVWNLQGUHGDQGVXFK DVDUHDOOLHGRQHWRDQRWKHUDQGWKHUHVKDOOEHPXFKVODXJKWHUFRQWHQWLRQV DOVRWRXFKLQJPDWWHUVRI)DLWKDQGSULYLOHJHVDQGFXVWRPVLQ5HOLJLRQDQG DQFLHQW 7UDGLWLRQV WKHUH VKDOO EH DOVR PDQ\ DSSDULWLRQV LQ WKH $LU ILVKHV VKDOO PDQ\ RI WKHP VXIIHU GHVWUXFWLRQ DQG LW VKDOO EH GDQJHURXV 1DYLJDWLQJ.LQJVVKDOO:DURQHDJDLQVWDQRWKHUWKHIDWKHUDJDLQVWWKHVRQ DQGWKHVRQDJDLQVWWKHIDWKHUDQGEURWKHUDJDLQVWEURWKHU F  $QGLILWDSSHDULQWKH(DVWSDUWRI+HDYHQWKHVRRQHUZLOOWKHVHEH PDQLIHVWHGDQGLWVLJQLILHVHQPLWLHVEHWZHHQ.LQJV1REOHVDQG3OHEHLDQV WXPXOWV ELFNHULQJV F LI LQ WKH :HVW SDUW WKH ODWHU DQG WKHUH VKDOO EH PDQ\ DQ[LHWLHV DQG GHDWKV DPRQJVW PHQ LQ WKH :HVWHUQ SDUWV , VKRXOG MXGJH LW LQ WKH 1RUWKZHVW SDUWV DQGWKLVVKDOOFRQWLQXHWKUHH\HDUVDQG DQGWKHUHVKDOOEHPDQ\ELUGVILVKHVDQGLQXQGDWLRQVDQGRYHUIORZLQJVRI 5LYHUV  


&+$3;,2IJUHDW&RQMXQFWLRQVWKHLU1XPEHUDQGKRZWRMXGJHRI WKHLU(IIHFWV

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
 

FRQWLQXDQFHLQFRPPRQVLJQVDPHDQEHWZHHQWKHVHYL]WKH\DUHQHLWKHU RIORQJRUVKRUWFRQWLQXDQFH 



&+$3;,,2IWKH&RQMXQFWLRQVRIWKH6XSHULRUV

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

&+$3;,,,2IWKHPHDQDQGOHVVHU&RQMXQFWLRQVDQGWKHLU(IIHFWV

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



&+$3;,92IWKH&RQMXQFWLRQRIWKH3ODQHWVLQWKHWZHOYH6LJQV DFFRUGLQJWR+HUPHV

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of MJIand Gin [  TJand K in F  TMJKand Gin F  T6Mand Kin F  TVJand Iin Y  

$FFRPSWV6WHZDUGVDQG6HFUHWDULHVRI6WDWH7UXVWHHV FVROGLHUVVKDOOEH REHGLHQW WR WKHLU &RPPDQGHUV DQG PDQ\ WKHIWV DQG UREEHULHV WR WKH +LJKZD\VKDOOEHFRPPLWWHGVRWKDWSDVVHQJHUVDUHWKUHDWHQHGPLVFKLHI   6R OLNHZLVH 6DWXUQ DQG-XSLWHU DQG0DUV DQG WKH6XQ DQG9HQXV DQG 0HUFXU\ DQG WKH0RRQ LQ&RQMXQFWLRQ LQ&DQFHU VLJQLILHV GHWULPHQW LQ HYHU\WKLQJDQGIHDUVKDOOIDOORQPHQDQGWKH.LQJVKDOOSHUSOH[PHQDQG RQHPDQDQRWKHUWKHUHVKDOODOVREH(DUWKTXDNHVDQGGHWULPHQWERWKDW6HD DQG/DQG   $QGZKHQ6DWXUQDQG-XSLWHUDQG0DUVDQGWKH0RRQDUHMRLQHG LQ/HR.LQJVVKDOOZDUDQGNLOORQHDQRWKHUDQGWKHUHVKDOOKDSSHQPDQ\ JUHDWWHUURUVDQGHYLOVWRPHQ   :KHQ 6DWXUQ DQG 0DUV DQG 0HUFXU\ DUH MRLQHG LQ 9LUJR LW VLJQLILHV GDPDJH DQG GHWULPHQW WR ZRPHQ DQG .LQJV VKDOO EH GHFHLYHG  DOVRLIWKH6XQEHHFOLSVHGLQ9LUJRDQG0DUVMRLQHGXQWRKLPWKHUHVKDOO EH VODXJKWHU EHWZHHQ WKH 1REOHV DQG 3OHEHLDQV DQG JUHDW GLVVHQWLRQV $OVRZKHQ6DWXUQDQG9HQXVDUHMRLQHGLQWKLVVLJQLWGHQRWHVDQLQFUHDVHRI ZDWHUV   :KHQ 0DUV DQG -XSLWHU DUH MRLQHG LQ /LEUD LW VLJQLILHV WKH HYLO VWDWHRI1REOHPHQDQGWKHLU$VVRFLDWHV$OVRZKHQ-XSLWHUDQGWKH6XQDQG WKH 0RRQ DUH WKHUHLQ MRLQHG WKHUH VKDOO KDSSHQ PRUWDOLWLHV WR ZRPHQ DQGMXVWPHQDQGWKHUHVKDOOEHPXFKUDLQFORXGVDQGPDOLJQDQWD\H   $JDLQ ZKHQ6DWXUQ DQG0DUV DQG9HQXVDUHMRLQHGLQ6FRUSLRLW VLJQLILHV WKH .LQJ VKDOO EH ZRXQGHG RU ELWWHQ E\ VRPH%HDVWRUVWXQJE\ VRPH$GGHURUREQR[LRXVFUHDWXUHDQGWKDW.LQJVVKDOOJRRXWRIWKHLURZQ /DQGVLQWRRWKHUVRQH.LQJVKDOOGLVDJUHHDQGFODVKZLWKDQRWKHUDQGWKH\ VKDOO EUHDN WKH OHDJXH DQG SURPLVH ZKLFK WKH\ KDYH PDGH WR HDFK RWKHU $OVR ZKHQ WKH 0RRQ LV DOVR MRLQHG ZLWK WKHP LW VLJQLILHV PXFK UDLQ DQG LQFUHDVHRIZDWHUV  0RUHRYHU LI 6FRUSLR EH WKH $VFHQGDQW RI WKH 5HYROXWLRQ RI WKH :RUOG DQG 6DWXUQ EH WKHUH DQG 0DUV DOVR MRLQHG XQWR KLP RU KDYH DQ\ SDUWLFLSDWLRQZLWKKLPLQWKH$VFHQGDQWDQG9HQXVEHWKHQ&RPEXVWDQG -XSLWHUUHWURJUDGHMXGJHHYLOLQHYHU\WKLQJZDUVDQGTXDUUHOVVDFNLQJVDQG VSRLOLQJV RI &LWLHV DQG 7RZQV (DUWKTXDNHV WHUURUV DQG EORRGVKHG PRUWDOLWLHV DQG PDQ\ GHVWUXFWLYH LQILUPLWLHV EHFDXVH 6FRUSLR LV WKH PRVW XQIRUWXQDWHRIDOOWKHVLJQVMXGJHDOVRWKDW.LQJVVKDOOGLVDJUHHDQGILJKW RQH ZLWK DQRWKHU DQG 1REOH DQG *UHDW PHQ VKDOO GLH DQG WKHUH VKDOO KDSSHQ PDQ\DQ[LHWLHVWULEXODWLRQVDQGWURXEOHLQWKHZRUOGDOVRLIERWK   T6MKVJIand theGinE  T6Mand K&Gin Q  T6Kand Iin P  VEclipsed and Kin T  T6andJ  TKand Min ;  TMVand Gin ;  T6Kand Jin &

 

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


&+$3;96KRZLQJKRZWRMXGJHRIWKH*HQHUDO$FFLGHQWVRIWKH :RUOGE\WKH)DOOLQJRI1HZ

  6XQGD\  0RQGD\   7XHVGD\   

2Q:HGQHVGD\DZDUP:LQWHULQWKHEHJLQQLQJEXWWRZDUGVWKH HQG VQRZ DQG IURVW D FORXG\ 6XPPHU SOHQW\ RI IUXLW DOVR RI FRUQ ZLQH KD\ KRQH\ DQG RWKHU WKLQJV GDPDJH DQG KDUG ODERXU WR ZRPHQ ZLWK FKLOG GHDWK WR PDQ\ FKLOGUHQ SOHQW\ RI VKHHS QHZV RI .LQJV DQG JUHDW ZDUVDQGEORRGVKHGWRZDUGVWKHPLGVW   2Q 7KXUVGD\ ERWK :LQWHU DQG 6XPPHU ZLQG\ D UDLQ\ +DUYHVW DQGDPRLVW6SULQJPDQ\,QXQGDWLRQVWRZDUGVWKHODWWHUHQGRIWKH
  :HGQHVGD\   7KXUVGD\   )ULGD\  6DWXUGD\  

7KH3RVW6FULSW

 7RWKH-XGLFLRXVDQG,PSDUWLDO5HDGHU

 8SRQ WKH FORVXUH RI WKHVH P\ /DERXUV DQG ZKHQ VR PXFK RI WKH (SLVWOHV ZDV SULQWHGWKDW,FRXOGQRWFRQYHQLHQWO\EULQJLQWKLVZKLFK,DPKHUHWRGHOLYHUXQWR \RX DSSHDUV DQ LQYHFWLYH IODVK\ ZHDN ULGLFXORXV LQFRQVLGHUDWH FKROHULF UDYLQJ DQG UD\OLQJ 3DPSKOHW DJDLQVW RQHZKLFKLWVHHPVKHLVGLVSOHDVHGZLWKIRUQRW FRQFOXGLQJ ZLWK KLP RQ WKH $QQRWDWLRQV ZKLFK KH SXEOLVKHGRQ-HU7KH ZKLFKDVLQGHHGULGLFXORXVVRVKRXOG,KDYHVPLOLQJO\SDVVHGLWRYHULQVLOHQFHDQG QRWUHQGHUHGP\VHOIWKXVZRUWK\RIODXJKWHULQUHFRUGLQJKLVIROO\EXWWKDWKHZDV VRDEVXUGDQGFKLOGLVKDVWREULQJPHXSRQWKH6WDJHZKRPKHNQRZVQRWDQGZKR LVDOWRJHWKHUDVWUDQJHUXQWRKLPVDYHIRUZKDWWKH0HQGD[5XIXV5RODQGXVRU>KLV %URWKHU@ 2UODQGR IXULRVR KDV PDOLFLRXVO\ DQG FRQWUDU\ WR KLV RZQ NQRZOHGJH GHOLYHUHGXQWRKLP  8SRQ WKH ILUVW VLJKW WKHUHRI , SHUFHLYHG LW WR EH D VFXUULORXV 3DPSKOHW QR PRUH ZRUWK\ WKH KHHGLQJWKHQ3ROLWLFXV3KUHQHWLFXVRU:DONHUVGLVVHPEOLQJDQG O\LQJ2FFXUHQFHVDVLWZDVFRPSRVHGRIVXFKOLNHSDSHUDQGYDULHW\RIOHWWHUEHLQJ ,EHOLHYH E\WKH3ULQWHUSXEOLVKHGJUDWLVDQGWKHUHIRUHE\KLPQRWWKRXJKWZRUWK\ RI EHWWHU SDSHU OHWWHU RU ZRUN EHLQJ VXFK PHDQ VWXII  VR GRHV LW FRQWDLQ WKH OLNH IUHQ]LHVLQYHFWLYHVDQGZKLPVLFDOLQYHQWLRQVDQGHYDVLRQV,VKDOOQRWVSHQGWLPHRU SDSHU WR PHQWLRQ DQ\ SDUW WKHUHRI VDYH RQO\ ZKHUH KH LV SOHDVHG QRZ DQG WKHQ WKLQNLQJ KH KDV VXIILFLHQW JURXQG IURP WKH PDOLFLRXV DVSHUVLRQV RI WKH XQZRUWK\ EHIRUHPHQWLRQHGIRUKLVLPSUXGHQWDQGLPSXGHQWWDXQWVDQGODQJXDJH WRYHQWKLV ZDVKLSQHVVDQGIURZDUGFUDVVQHVVDJDLQVWPHKLVUHDVRQ,NQRZQRWXQOHVVLWZHUH IRU DQVZHULQJ D WXUQFRDW RI KLV RZQ /LYHU\ ZKR KDG YDLQO\ DQG LJQRUDQWO\ DWWHPSWHGWREHDWGRZQWKDWZKLFKKHLVDOWRJHWKHULJQRUDQWRIRUIRUWKDWQRQHFRXOG HYHU \HW JLYH PH D 5HSO\ WKRXJK LW KDV EHHQ DWWHPSWHG ZLWK DOO WKH YLJRXU DQG ULJRXUWKDWPLJKWEHEXWWRQRSXUSRVHDVDSSHDUVE\WKHILUVW%RRNRIWKLV9ROXPH  ,Q KLV  SDJH KH EROGO\ WHOOV KLV 5HDGHU 6LU &KULVWRSKHU +H\GRQV ODUJHGLVFRXUVHDQG:LO5DPHVH\VUHSO\WR'U+RPHVLWVXIILFLHQWO\FRQIXWHG%XW KHGRHVQRWLQWKHOHDVWWHOOXVKRZQRUPDNHLWSODLQLWLVHQRXJKIRUWKLVROGPDQWR VLW DW KRPH DQG KHDU SHRSOH WDON RU UHDG WKH WLWOH RI %RRNV EXW VHDUFK QR IXUWKHU HLWKHUIRUZDQWRIWLPHRUMXGJHPHQWIRULIWKDWSDWFKHGXSSUHWHQGHG5HSO\WRP\ %RRN ZHUH HYHU SHUXVHG E\ KLP KH FDQQRW EH LJQRUDQW WKDW WKHUH LV QRW DQ\ RQH $UJXPHQWRI6LU&KULVWRSKHU+H\GRQVVRPXFKDVPHQWLRQHGPXFKOHVVGLVFXVVHG RUFRQIXWHGDQGDVWRXFKLQJPLQHZKLFKWKLVROG7RPBBBLI,PLJKWDQVZHUKLPLQ KLVRZQODQJXDJHDQGVKRZKLPKLVSODLQIOLWWLQJRIPHZLWKRXWEHLQJJXLOW\RIWKH VDPH DEVXUGLW\ ZLWK KLP RU LI , PLJKW YLQGLFDWH P\ VHOI IURP KLV DVSHUVLRQV E\ FDVWLQJWKHVDPHGLUWLQKLVIDFHWKDWKHKDVEROGO\GRQHLQPLQH OHDUQHGO\WHUPVD 5HSO\ DV KLV OHDUQHG &RQVXWRU GLG EHIRUH KLP EXW VREHU PHQ NQRZ LW LV SUHSRVWHURXVWRFDOOWKDWD5HSO\ZKLFKLVDQ$QVZHUEXWLWZLOOTXLFNO\DSSHDUDV, KDYHVDLG WRWKH-XGLFLRXVE\WKHILUVW%RRNRIWKLV9ROXPHWKDWWKHPDLQDQGFKLHI DUJXPHQWV WKHUHLQ UHPDLQ DV \HW ERWK E\ KLP DQG RWKHUV XQVKDNHQ QD\ E\ 0U   ,QVXOWLQJUHSURDFKLQJ   7KXVVDLWKWKH/25'/HDUQQRWWKHZD\RIWKHKHDWKHQDQGEHQRWGLVPD\HGDW WKHVLJQVRIKHDYHQIRUWKHKHDWKHQDUHGLVPD\HGDWWKHP   'U+RPHVZKRZDVZKHQKHFRPPHQFHG'RFWRUVWURQJPDQIRUWKH%LVKRSVWKHQKH EHFDPHD3UHVE\WHULDQDQGQRZDPRVWGHWHVWDEOH,QGHSHQGHQW   

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·VZRUNV $'LVFRXUVDSRORJHWLFDO ZKHUHLQ/LOLHVOHZGDQGORZG/LHVLQKLV 0HUOLQRUSDVTLOIRUWKH\HHUDUHFOHHUO\ODLGRSHQKLVVKDPHOHVVVODQGHU IXOOLHUHIXWHG DQGDWWDFNHGRWKHUDVWURORJHUVLQFOXGLQJ5DPHVH\DQG*DGEXU\   -RVHSK$QW-XG/LE&K   

VXFKDQLPDOVDUHZRUWK\WRFDUU\DIWHUKLP%XWE\WKLVRQHWKLQJLVLWSODLQWRHYHU\ ,QWHOOLJHQW5HDGHUWKDWKLVWRQJXHLVQRVODQGHUDVZHVD\ DQGWKHUHIRUHWKHUDWKHU WR EH H[FXVHG LI LQ DQ\SODFH RI KLV UDPEOLQJ SDWFKHG SLHFH KH EH IRXQG JXLOW\ RI UHSURDFKLQJ KLV EHWWHUV WKDW GDUHV WKXV ZKHQ KH NQRZV QRW RWKHUZLVH KRZ WR DQVZHU DG UHP  QRW RQO\ OLJKWO\ HVWHHP WKH WHVWLPRQLHV RI WKH $QFLHQW +LVWRULRJUDSKHUVEXWDOVRRIWKH)DWKHUVZKLFKEXWIRUEUHYLWLHVVDNH,FRXOGVKRZ KLP KRZ LQ LQQXPHUDEOH SODFHV RI WKHLU :RUNV WKH\ DFNQRZOHGJH WKHPVHOYHV EHKROGLQJ WR WKLV OHDUQHG -RVHSKXV EXW HVSHFLDOO\ (XVHELXV LQ DOPRVW HYHU\ &KDSWHU WKURXJKRXW KLV ZKROH WHQ %RRNV RI KLV (FFOHVLDVWLFDO +LVWRU\ DQG LQ VHYHUDOSODFHVWKHUHLQSODLQO\H[SUHVVHVLQWKHDIRUHQDPHGZRUGVWKDW+HZDVDPDQ ZRUWK\RI&UHGLWWKHZKLFKKHFDQQRWEHLJQRUDQWRIFHUWDLQO\ EHLQJDSURIHVVHG 'LYLQH-XGJH\RXWKHQ5HDGHU:KHWKHULVPRUHZRUWK\RIFUHGLW-RVHSKXVWKDWDV , KDYH FXII FLHQWO\ FKHZHG  WHVWLILHV $GDP 6HWK (QRFK DQG WKH UHVW RI WKH 3DWULDUFKVZHUH$VWURORJHUVDQGPRVWH[TXLVLWHWKHUHLQDQG(XVHELXVWKDWZDVD OHDUQHG )DWKHU RI WKH &KXUFK WKDW WHVWLILHV -RVHSKXV WR EH D PDQ PRVW ZRUWK\ RI FUHGLWRUOHDUQHG5XIXV5RODQGXVDQGZLVH0U*DWDNHUZKRVD\WKH\DUHQRW DQG UHYLOH WKRVH ZKR KDYH PDLQWDLQHGWKHFRQWUDU\EXWQRWDEOHRWKHUZLVHWRJLYH DQ\ UHSO\ WKHUHXQWR EXW LI RQH VD\ KHUH LV WZR WR WZR DQG VR LPDJLQH ZH VWDQG XSRQHTXDOWHUPV,PXVWQHHGVWHOOKLPKHZLOOILQGDVPXFKG UHQFHDVLVEHWZHHQ PHQDQGDVVHV\HWWRSXWWKHPDWWHURXWRIGRXEW,VKDOOJLYH\RXRQHPRUHZKLFK LV*HUVRQRQHVXIILFLHQWWRFRXQWHUYDLODWKRXVDQGVXFK5RODQGVRU*DWDNHUVWKDW DUH RSSRVLWH WKHUHXQWR ZKR LQ KLV 3UHIDFH WR KLV 7ULORJLXP $VWURORJLDH 7KHRORJL]DWDH WHVWLILHV DOVR WKDW $VWURORJ\ ZDV ILUVW UHYHDOHG E\ *RG KLPVHOI WR $GDP1D\IDUWKHU-RVHSKXVGRHVQRWRQO\WHVWLILHVWKDWWKLV6FLHQFHZDVVWXGLHG E\WKHVH3DWULDUFKVDQGWKDWDOVR*RGILUVWUHYHDOHGLWXQWRRXUILUVW)DWKHU$GDP EXWWKDW6HWKZDVVRZHOOVNLOOHGWKHUHLQWKDWKHIRUHNQHZWKHUHE\WKDWWKH:RUOG VKRXOG EH GHVWUR\HG E\ WKH IORRG DQG WKHUHIRUH HQJUDYHG LW ZLWK RWKHU $UWV DQG 6FLHQFHV RQWZR3LOODUVWKHRQHRIVWRQHDQGWKHRWKHURIEULFNDQGWKDWKHVDZWKDW RIVWRQHWRUHPDLQLQ6\ULDLQKLVGD\V0RUHRYHUKHIDUWKHUWHVWLILHVWKDW$EUDKDP EHLQJH[TXLVLWHWKHUHLQDQGKDYLQJOHDUQHGLWLQ&KDOGHDWKHSODFHRIKLVELUWK ZKHQKHZHQWLQWR(J\SWZDVWKHILUVWWKDWWDXJKWWKHP$VWURORJ\DQG$ULWKPHWLF WKHZKLFKWHVWLPRQLHVHVSHFLDOO\FDUU\LQJVXFKVWUHQJWKRISUREDELOLW\ZLWKWKHP , FDQQRW EHOLHYH HYHU ZHUH RU HYHU ZLOO EH TXHVWLRQHG E\ WKH MXGLFLRXV DQG WKHPRUH UDWLRQDOVRUWRIPHQ   $QG DV WRXFKLQJ 0U *DWDNHU KLV UDVK DQG LQFRQVLGHUDWH DVSHUVLRQ LQ UHFNRQLQJ PH ZLWK WKH ,PSRVWRUV DQG -XJJOLQJ NQDYHV ZKLFK DEXVH WKLV 1REOH 6FLHQFH E\ WKHLU LOOHJDO SUDFWLVHV WKH ZKLFK , KDYH LQ WKH ILUVW (SLVWOH DQG ILUVW %RRNVXIILFLHQWO\GHFODUHGDJDLQVW LQWHUPLQJPHDELUGRIWKHVDPHIHDWKHU,PLJKW MXVWO\WHOOKLPKHLVQREHWWHUWKHQD7KRPDV:LVDNHUWKXVUDVKO\WRFRQFOXGHZKDW KHLVLJQRUDQWRIEXWWKDW,IHDU,VKRXOGEHJXLOW\RIWKHOLNHDEVXUGODQJXDJHZLWK KLP DQG EHWRRSODLQZLWKWKHROGPDQZKRP,PXVWFRQIHVVKDVE\WKLVKLVUDVK DQGLQFRQVLGHUDWHDIILUPDWLRQPRVWH[WUHDPO\RYHUVKRWKLPVHOIDQGZHUHKHQRWD 'LYLQH,VKRXOGVD\KHZHUHGRWLQJRUPDGWKXVKLJKO\WRGDUHWRDIIURQWRQHZKR KHLVDOWRJHWKHUDVWUDQJHUWRDQGWKLVOHWPHWHOO\RX0U*DWDNHUDQGH[FXVH\RXU VHOIZKHQDQGDVZHOODV\RXFDQ7KDWLWLVQHLWKHUWKHSDUWRID6FKRODUD5DWLRQDO   3URSHUO\WKHVRXWKHUQPRVWSRUWLRQRIWKHYDOOH\RIWKH7LJULVDQGWKH(XSKUDWHV ULYHUV6RPHWLPHVLWLVH[WHQGHGWRLQFOXGH%DE\ORQLDDQGWKXVFRPSULVHVDOO6 0HVRSRWDPLDDVLQWKH%LEOH   )RO3DJH3DJH   

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ƒ-XQLL  :LOOLDP5DPHVH\    ),1,6