,1752'8&7,21

'XQJHRQ0DVWHU
V1RWHV13&DQG0RQVWHU6WDWLVWLFV
7KLVPRGXOHLVGHVLJQHGIRUWKH/$1.+0$5a&LW\RI$GYHQWXUHVHWWLQJDQGWKH$'9$1&(''81*(216 '5$*216
JDPH6ZRUGVRI'HFHLWLVDQDGYHQWXUHIRUDSDUW\RIIRXUWRILYHFKDUDFWHUVOHYHOVWR7KHSDUW\VKRXOGFRQWDLQDWKLHID
ZKLWHZL]DUGDQGDQXPEHURIILJKWHUV
6ZRUGVRI'HFHLWLVWKHVHFRQGPRGXOHPDGHIRUWKH/DQNKPDUVHWWLQJWKHZRUOGFUHDWHGE\)ULW]/HLEHUIRUKLVIDPHGIDQWDV\
KHURHV)DIKUGDQG*UD\0RXVHU7KLVDGYHQWXUHPD\EHSOD\HGDVDVHTXHOWR&$6ZRUGVRIWKH8QGHUFLW\RULWPD\EHSOD\HG
VHSDUDWHO\
/HLEHU
V ZRUOG RI 1(+:21a LV VRPHZKDW GLIIHUHQW IURP VHWWLQJV RI PRVW $' ' JDPHV 7KH XVH RI PDJLF LV OLPLWHG DQG
1(+:21a
a KDV LWV RZQ DVVRUWHG FUHDWXUHV DQG JRGV &OHULFDO SRZHUV VSHOO FKRLFHV DQG SOD\HU FKDUDFWHU UDFHV DUH DOVR
GLIIHUHQW
7KH/$1.+0$5a &LW\ RI$GYHQWXUHVRXUFHERRN KHUHDIWHU FDOOHGWKH 6RXUFHERRNSRLQWV RXWWKH GLVWLQFWLRQVEHWZHHQWKH
WZRZRUOGVDQGVKRXOGEHUHDGE\WKH'0EHIRUHWKH DGYHQWXUHLVVWDUWHG7KH'0VKRXOGEHIDPLOLDUZLWKWKHYDULRXVJDPLQJ
HOHPHQWVRIWKHZRUOGRI1(+:21aVXFKDVWKHPRQHWDU\V\VWHPWKHSRZHUVRIWKHPXOWLSOHJXLOGVDQGWKHVRFLDOOHYHOV
6ZRUGVRI'HFHLWLVGLYLGHGLQWRWKUHHVFHQDULRV7KH&XUVHRI9DOLQRUE\6WHSKHQ%RXUQH7KH&DW
V&UDGOHE\.HQ5ROVWRQ
DQG 6WHYH 0HFFD DQG 2QH 1LJKW LQ /DQNKPDU E\ 0LFKDHO 'REVRQ (DFK DGYHQWXUH FDQ EH SOD\HG VHSDUDWHO\ GXULQJ RQH
HYHQLQJVHVVLRQ7KHDGYHQWXUHVPD\EHSOD\HGLQDQ\RUGHU

5DQGRP(QFRXQWHUVDQG&LW\(YHQWV

'XULQJ WKH ILUVW WZR VFHQDULRV WKH SDUW\ PD\ HQFRXQWHU UDQGRP HYHQWV LQ WKH FLW\ RI /DQNKPDU WKH FDWDFRPEV RU WKH VHZHUV
EHORZ /DQNKPDU 7KH UDQGRP HQFRXQWHUV DUH OLVWHG LQ D VLQJOH WDEOH ORFDWHG RQ WKH LQVLGH RI WKH PRGXOH FRYHU 5ROO RQ WKH
FROXPQWKDWFRUUHVSRQGVWRDJHQHUDOORFDWLRQRIWKHDGYHQWXUH'XHWRWKHQDWXUHRIWKHWKLUGFKDSWHUWKHVWUHHWVDUHIRUWKHPRVW
SDUWGHVHUWHGWKHUHDUHQRUDQGRPHQFRXQWHUVWKHUH
7KHNH\QRQSOD\HUFKDUDFWHUVRIWKHWKUHHVFHQDULRVDUHGHVFULEHGZLWKLQWKHDSSURSULDWHDGYHQWXUHVHFWLRQVRIWKLVERRNOHW
2WKHU13&V DUHGHVFULEHG LQWKH6RXUFHERRN RULQ WKH0RQVWHU 6WDWLVWLFV7DEOH LIWKH\DUHQRUPDOKXPDQVRUVLPSOHJXDUGV
7KHVHPD\EHHQFRXQWHUHGGXULQJDQ\RIWKHWKUHHVFHQDULRV
7KHPRQVWHUV
VWDWLVWLFVDUHOLVWHGRQWKH0RQVWHU6WDWLVWLFV7DEOHORFDWHGRQWKHLQVLGHRIWKHPRGXOHFRYHU)RUPRUHLQIRUPDWLRQ
RQWKHVHPRQVWHUVUHIHUWR0RQVWHU0DQXDOV,DQG,,RUFKDSWHU1HKZRQ
V0RQVWHUVSDJHVLQWKH6RXUFHERRN

5ROH3OD\LQJ*XLGHOLQHV

)LUVWVXJJHVWHGLQ6ZRUGVRIWKH8QGHUFLW\ILYHSUHUROOHGFKDUDFWHUVDUHSURSRVHGDWWKHHQGRIWKLVERRNOHW,IWKHSOD\HUVGRQRW
KDYHFKDUDFWHUVRIVXIILFLHQWO\KLJKOHYHOVRULIWKHUHDUHQRWHQRXJKSDUW\PHPEHUVWKHSUHUROOHGFKDUDFWHUVVKRXOGEHXVHG7KH
LQIRUPDWLRQSURYLGHGLVVXIILFLHQWWRSOD\WKHFKDUDFWHUV%XWLIPRUHGHWDLOLVGHVLUHGUHIHUWR&$
3OD\HUFKDUDFWHUVZKRKDYHFRPSOHWHG6ZRUGVRIWKH8QGHUFLW\VKRXOGNHHSDQ\LWHPVRUZHDOWKDFTXLUHGGXULQJWKDW DGYHQWXUH
DQGHDFK3&ZLOOKDYHDGHWDLOHGKLVWRU\ZKLFKVKRXOGDIIHFWUROHSOD\LQJ
3OD\HU&KDUDFWHUVVKRXOGUHDFWDV1HKZRQLDQSHRSOH7KH\VKRXOGFKDOOHQJHGDQJHURXVDQGP\VWHULRXVFUHDWXUHVIRUWKHVDNHRI
FXULRVLW\DQGDGYHQWXUH*RRGUROHSOD\LQJVKRXOGEHUHZDUGHGZLWKH[WUDH[SHULHQFHSRLQWVEXWSOD\HUVZKRGLGQRWSDUWLFLSDWH
LQ6ZRUGVRIWKH8QGHUFLW\VKRXOGQRWEHSHQDOL]HGEHFDXVHWKH\DUHXQIDPLOLDUZLWKWKH1(+:21
ZRUOG
0DJLFVKRXOGUHPDLQDUDUHRFFXUUHQFHDQGWKH'0VKRXOGSD\SDUWLFXODUDWWHQWLRQWRWKHLQGLYLGXDOVRFLDOOHYHOVRIFKDUDFWHUV
+LJKOHYHO%ODFN:L]DUGVVKRXOGEHWUHDWHGDV13&VQRW3&V
$OWKRXJK)DIKUG
aDQG*UD\0RXVHUDUHUHFRPPHQGHGDV3&VIRUWKHWKLUGVFHQDULRLWLVSUHIHUDEOHIRUWKHKHURHVWRUHPDLQDV
13&VLQWKHILUVWWZRFKDSWHUV7KLVLVSDUWLFXODUO\WUXHIRU7KH&DW
V&UDGOHZKHQ)DIKUGDQG*UD\0RXVHUZLOOEHNLGQDSSHG
DQG WKHUHIRUH DEVHQW IRU D VLJQLILFDQW SDUW RI WKH DGYHQWXUH 2FFDVLRQDO HQFRXQWHUV ZLWK WKH WZR KHURHV FDQ KHOS WKH 3&V ILQG
LPSRUWDQWLQIRUPDWLRQZKHQWKH\DUHKDYLQJWURXEOHEXW)DIKUGDQG*UD\0RXVHUVKRXOGSUREDEO\QRWVSHQGWKHHQWLUHDGYHQWXUH
ZLWKWKHSDUW\

&LW\$GYHQWXULQJ

&LW\ DGYHQWXULQJ DOORZV IRU QXPHURXV SOD\HU RSWLRQV DQG '0 LPSURYLVDWLRQ ,Q D FLW\ WKH 3&V FDQ DWWDLQ LQIRUPDWLRQ IURP D
GR]HQ SODFHV DQG SHRSOH  WDYHUQV JXLOGV OLEUDULHV WHPSOHV LQIRUPDQWV VNLOOHG H[SHUWV LQ QXPHURXV GLVFLSOLQHV VRUFHUHUV
IRUWXQH WHOOHUV WRZQ FOHUNV JXDUG VWDWLRQV HWF $OWKRXJK WKLV IUHHGRP LV LQWHQGHG WR EHIXQLWLQFUHDVHVWKH QXPEHU RIZURQJ
WUHHVXSZKLFK3&VFDQ EDUN 7KLVFDQEHIUXVWUDWLQJIRUWKHSOD\HUV/LVWHGEHORZDUHDIHZVXJJHVWLRQVWRWKH'0RQKRZWR
NHHSWKHJDPHPRYLQJ

D$ODFNRIDFFRPSOLVKPHQWZLOOOHDGWRGLVDSSRLQWPHQWDQGSHUKDSVERUHGRP*LYHWKH3&VXVHIXOLQIRUPDWLRQEHIRUHWKH\JHW
UHVWOHVV
E$YRLGJLYLQJWKHSOD\HUVWRRPDQ\GLVWUDFWLQJGHWDLOV LQ LPSURYLVHGHQFRXQWHUV7KH3&VPD\EHFRPHFRQIXVHGDQGLWPD\EH
GLIILFXOWWRJHWWKHPEDFNRQWKHULJKWWUDFN
F ,I WKH 3&V GR JHW RII WKH WUDFN XVH 13&V RU WKHLU PHVVHQJHUVWR JHW WKH SDUW\ JRLQJ LQ WKH ULJKW GLUHFWLRQ )RUH[DPSOHLQ
FKDSWHULWLVQHFHVVDU\IRUWKH3&VWRJHWLQIRUPDWLRQIURP2JRWKH%OLQGDSURPLQHQWIHQFHEHIRUHWKHDGYHQWXUHFDQUHDOO\
EHJLQ,IWKH3&VZDQGHUDQGPLVVWKH2JRFRQQHFWLRQ'XFKLQDQ13&FDQWHOOWKH3&VWRYLVLW2JRRUKHFDQVHQGDPHVVHQJHU
WHOOLQJWKHSDUW\WKHLQIRUPDWLRQWKDW2JRZDVWRJLYHWKHFKDUDFWHUV
G 'R QRW LQYHQW WRR PDQ\ FRPSOLFDWHG VXESORWV PLVOHDGLQJ FOXHV RU IDVFLQDWLQJ EXW LUUHOHYDQW GHWDLOV 7KH EHVW UHVSRQVH LV
XVXDOO\QHJDWLYH1RZHKDYHQ
WKHDUGDQ\WKLQJDERXWWKDW1RZHGRQ
WNQRZZKDWWKDWVWUDQJHREMHFWLV1RZHKDYHQ
W
VHHQHLWKHURIWKHP

&KDSWHU7+(&856(2)
9$/,125

'XQJHRQ0DVWHU
V%DFNJURXQG

%\6WHSKHQ5%RXUQH

7KLV DGYHQWXUH LQYROYHV WKH QHIDULRXV LQWULJXHV RI WKH KRXVH RI 9DOLQRU D KLJKO\ SODFHG DQG PXFK UHVSHFWHG QREOH IDPLO\ RI
/DQNKPDU /RUG (VVHQ WKH FXUUHQW &RXQW 9DOLQRU LV D WUXVWHG DGYLVRU WR WKH RYHUORUG RI /DQNKPDU DQG D PLQLVWHU LQ WKH FLW\
JRYHUQPHQW
2IODWHWKH9DOLQRUVKDYHIDOOHQRQKDUGWLPHV/RUG(VVHQ
VZLIHWKHFRXQWHVVKDVUHFHQWO\GLHGIURPDVXGGHQLOOQHVV7KHFRXQW
KLPVHOIOLHVVWULFNHQZLWKDVWUDQJHDQGLQH[SOLFDEOHPDODG\DQGKLVDWWHQGLQJSK\VLFLDQVIHDUIRUKLVOLIH/DG\ 7DQ\D9DOLQRU
WKHFRXQW
VGDXJKWHULVZHOOHQRXJKLQERG\EXWWKHVWUHVVRIWKHVHGDUNGD\VWHVWVKHUVDQLW\,WLVFOHDUWKDWDPDOHYROHQWIRUFH
KDVWDNHQRYHUWKH+RXVHRI9DOLQRU

7KH)DPLO\+LVWRU\

&RXQW(VVHQ
VIDWKHU$OOPD9DOLQRUZDVQRWE\ELUWKD/DQNKPDU+HFDPHIURPWKHHDVWIURPWKHODQGVRIWKH5HG*RGDQGWKH
UHDOPVRIWKHILUHPDJLFLDQV
$OOPD 9DOLQRU ZDV ZHOO DFTXDLQWHG ZLWK PDQ\ DVSHFWV RI VRUFHU\ IRU KH ZDV E\ YRFDWLRQ D VFKRODU RI OHJHQG ORUH DQG WKH
KLVWRU\RIQHFURPDQF\9DOLQRUDGYLVHGWKHSRWHQWDWHRQDOOPDWWHUVRIZL]DUGU\DQGKHHIIHFWLYHO\UHFUXLWHGDSSURSULDWHPDJLF
XVHUVIRUVSHFLILFRURQJRLQJWDVNV
$OOPD 9DOLQRU KDG WKH NQDFN RI ZHHGLQJ RXW SRWHQWLDO WURXEOHPDNHUVIRUWKH RYHUORUG)RU WKLVVHUYLFH9DOLQRUDQGKLVKHLUV
ZHUHJLYHQDWLWOHDVWLSHQGDWRZQHVWDWHLQWKH1REOH'LVWULFWDQGDSDUFHORISURSHUW\DGMDFHQWWRWKH0DUVK5RDGWRWKHHDVWRI
/DQNKPDUVHH0DS9
:LWKWKHRYHUORUG
VWDFLWDSSURYDOWKHQHZO\WLWOHG&RXQW9DOLQRUEXLOWDODUJHVWRQHVKULQHWRWKH5HG*RGRQKLVPDUVKSURSHUW\
:KLOHHUHFWLQJ WKHVKULQHZRUNHUVGLVFRYHUHGDVPDOOV\VWHPRIFDWDFRPEVEHQHDWKWKHJURXQG'HOLJKWHG9DOLQRUIDVKLRQHGD
WRPEDPLGVWWKHWXQQHOVHVWDEOLVKLQJDVHFUHWIDPLO\YDXOWFORVHWRWKH5HG*RG

7KH9DOLQRU6RQV
$OOPD 9DOLQRU KDG WZR VRQV ,QULN DQG (VVHQ $V WKH HOGHVW ,QULN ZDV KHLU WR WKH IDPLO\ WLWOH DQG KLV IDWKHU DGRUHG KLP ZLWK
GHYRWLRQ HTXDO WR WKDW VKRZQ KLV GHLW\ $OOPD ZDV GHWHUPLQHG WKDW ,QULN ZRXOG SURVSHU DQG LQFUHDVH WKH IDPLO\ IRUWXQHV +H
KRSHGKLVHOGHVWVRQZRXOGULVHDERYHWKHUROHRIRYHUORUG
VDGYLVRURQPDJLFVDQGEHFRPHLQVWHDGWKHRYHUORUG
VVRUFHUHU$QGVR
LWZDVWKDWDVD\RXWK,QULNZDVVHQWHDVWWRVWXG\ZL]DUGU\XQGHUWKHILUHPDJLFLDQV
7KH\RXQJHUVRQ(VVHQZDVRYHUORRNHGLQWKLVJUDQGVFKHPH:LWKRXWWLWOHRUVFKRROLQJLQPDJLFVWKHUHZDVOLWWOHJORU\OHIW%XW
DIWHUVRPHGHOLEHUDWLRQ$OOPDGHFLGHGWKDW\RXQJ(VVHQZRXOGVWXG\PHUFDQWLOHPDWWHUV
(YHQWRD\RXQJFKDSLWZDVDSSDUHQWWKDW,QULN
VIXWXUHKHOGWKHSURPLVHRIXQWROGH[FLWHPHQWDQGURPDQFHQRWWRPHQWLRQWKH
WLWOHRIFRXQW(VVHQFRXOGVHHWKDWKLVRZQIDWH LQYROYHGWKHUROHRI OLWWOHPRUHWKDQ PHUFKDQWRUPRQH\KDQGOHU7KH\RXQJHU
9DOLQRU
VHQY\DQGPDOLFHJUHZDQGLQKLVKHDUW(VVHQVHFUHWO\YRZHGWR WXUQWKHWDEOHV
7HQ \HDUV SDVVHG DQG GHVSLWH KLV UHOXFWDQFH (VVHQ SURVSHUHG DV ILQDQFLDO PDQDJHU IRU WKH IDPLO\ 0DQ\ LQ /DQNKPDU HDJHUO\
HQWHUHGLQWREXVLQHVVZLWKWKH9DOLQRUVDQGUDUHO\ZHUHWKRVHYHQWXUHVXQIUXLWIXO:LWKWKHIDPLO\DWWKHKHLJKWRILWVSURVSHULW\
$OOPDGLHGRIKHDUWIDLOXUH
$PLGVWWKHVRUURZDQGXSKHDYDODQGGHVSLWHKLVLQFRPSOHWHDSSUHQWLFHVKLS,QULNZDVVXPPRQHGE\IDPLO\PHPEHUVWRDVVXPH
KLVELUWKULJKW
:KLOHWKH9DOLQRUVDZDLWHG,QULN
VUHWXUQ(VVHQDUUDQJHGKLVIDWKHU
V EXULDO'LVGDLQLQJKLVIDWKHU
VUHYHUHQFHIRUWKH5HG*RGKH
GHFUHHGWKHFRXQWEHEXULHGLQWKHWRZQHVWDWHFU\SW'HVSLWHIDPLO\SURWHVWV(VVHQKDGKLVZD\
(VVHQNQHZKLVEURWKHU
VPLQGZHOODQGFRUUHFWO\DQWLFLSDWHGWKDW,QULNZRXOGVWRSDWWKHVKULQHRIWKH5HG*RGZKHUHKHWKRXJKW
KLV IDWKHU ZRXOG EH EXULHG WR SD\ SULYDWH KRPDJH WR WKH GHDG SDWULDUFK /\LQJ LQ ZDLW DQG ZLWK WKH DLG RI WZR WKXJV (VVHQ
ZD\ODLG KLV EURWKHU LQ WKH FDWDFRPEV,QULNZDVRYHUSRZHUHGVWULSSHGRIKLV UDLPHQWV DQGPDJLFDO WKLQJV DQGERXQGLQKHDY\
URSH3ODFLQJKLVKDSOHVVEURWKHULQDVDUFRSKDJXV(VVHQRUGHUHGWKHWKXJVWRZDOOXSWKHHQWU\WRWKHDQWHFKDPEHUDQGWRPE
:LWKWKHGHDGO\PDVRQU\ZRUNFRPSOHWH(VVHQSURGXFHGDIODVNRIZLQHIRUWKHHYLOKLUHOLQJVWRGULQN7KHWKXJVEDUHO\KDGWLPH
WRZLSHWKHLUPRXWKVEHIRUHWKHSRWHQWSRLVRQLQWKHZLQHNLOOHGWKHP:LWK,QULNEXULHGDOLYHDQGWKHWKXJVGHDG(VVHQUHWXUQHG

WR/DQNKPDUVHFXUHLQWKHNQRZOHGJHWKDWKHDORQHKHOGWKHWLWOHVRIWKHIDPLO\9DOLQRU
'D\VODWHU DPHVVHQJHUDUULYHG IURPWKH (DVWWRUHSRUWWKH WUDJLFGHPLVHRI,QULN9DOLQRU$FFRUGLQJWRDQH\HZLWQHVVDFFRXQW
,QULNKDGEHHQ DFFRVWHG E\EULJDQGVRQWKHURDG WR/DQNKPDUDQGKLVERG\FRPPLWWHGWR DPDUVK\ERJ $VSURRIWKHSHDVDQW
ZLWQHVV SURGXFHG WZR VPDOO WRNHQV ZKLFK EHORQJHG WR ,QULN DQG ZKLFK WKH SHDVDQW FODLPHG KDG EHHQ UHFRYHUHG IURP WKH
URDGZD\7KHZLWQHVVZDVQHYHUDJDLQVHHQLQ/DQNKPDU

,QULN9DOLQRU
V2UGHDO
$IWHUWKUHHGD\VRIVFUDWFKLQJDQGFODZLQJ,QULNOLEHUDWHGKLPVHOIIURP WKHURSHVDQGWKHWRPE+HHPHUJHGIURPWKHJURXQGKDOI
GHDGPRVWO\PDGDQGFRPSOHWHO\EHQWRQYHQJHDQFH
7KHVWRU\RI,QULN9DOLQRU
VOLIHRYHUWKHQH[W\HDUVLVQRWWROGLQWKLVWDOH,WLVVXIILFLHQWWRQRWHWKDWKHUHWXUQHGWRWKH(DVW
ZKHUHKHFRPSOHWHGKLVDSSUHQWLFHVKLSLQPDJLF
7ZHQW\\HDUVKDYHSDVVHGDQG9DOLQRULVRQHRIWKHPRVWSURVSHURXVQREOHIDPLOLHVLQ/DQNKPDU&RXQW(VVHQKROGVWKHSRVLWLRQ
RIWKHRYHUORUG
VILQDQFLDODGYLVRU

%HJLQQLQJWKH$GYHQWXUH

,URQLFDOO\ LW LV WKH IDPLO\ VWDWXV WKDW KDV FDXVHG WKH DLOLQJ &RXQW (VVHQ WR LQYHVWLJDWH WKH UXPRUV RI VWUDQJH RFFXUUHQFHV DW WKH
PDUVK VKULQH RI WKH 5HG *RG +H KDV GLUHFWHG KLV GDXJKWHU WRKLUHWUXVWZRUWK\FKDUDFWHUVWR FRQGXFWWKHLQYHVWLJDWLRQ )RUKLV
GDXJKWHU
VEHQHILWDQGWKDWRIWKHKLUHOLQJV(VVHQKDVFRQFRFWHGDVWRU\WKDWEHOLHVKLVRZQVHFUHWDQGKLVPRVWKLGHRXVIHDUV
(DUO\RQHHYHQLQJWKH3&VDUHDFFRVWHGE\DQROGVHUYDQWPDQLQWKH6LOYHU(HO7DYHUQRQ'LP/DQHVHH0DS;DUHD7KH
ROGPDQDVNVWKHDGYHQWXUHUVWRPHHWZLWKKLVPDVWHUDWPLGQLJKWRQ%RQHV$OOH\EHKLQGWKHWDYHUQ$WWKHDSSRLQWHGWLPHDQG
SODFHWKHFKDUDFWHUVVHHDEODFNFDUULDJHZLWKWZRGDUNKRUVHV7KHKRRGHGGULYHUELGVWKH3&VWRHQWHUWKHFDUULDJH,QVLGHVLWVDQ
DXVWHUH EXW ORYHO\ \RXQJ QREOHZRPDQ LQ D EODFN GUHVV DQG GDUN YHLO 7DQ\D 9DOLQRU RIIHUV WKH IROORZLQJ FRPPLVVLRQ WR WKH
DGYHQWXUHUV

*RRGHYHQLQJ,
PVRJODG\RXKDYHFRPHDWP\VHUYDQW
VELGGLQJ,DP7DQ\D9DOLQRUGDXJKWHURI&RXQW(VVHQ
9DOLQRUDQGWKHODWHFRXQWHVV$V\RXPD\NQRZP\IDWKHULVDKLJKUDQNLQJDGYLVRUWRWKHRYHUORUGRI/DQNKPDU,W
LVP\XQGHUVWDQGLQJWKDW\RXRIIHU\RXUVHUYLFHVZLWKWKHXWPRVWGLVFUHWLRQ,IVRZHDUHSUHSDUHGWRXQGHUZULWHWKLV
FRQILGHQFHZLWKDKDQGVRPHIHH
7DQ\DWKHQSRXUVJROGQLNVIURPDYHOYHWSRXFKLQWRKHUODS
:HDUHSUHSDUHGWRRIIHU\RXWLPHVWKLVDPRXQWVKHFRQWLQXHV

LI\RXZLOOWDNHDQLQYHVWLJDWLRQRQRXUEHKDOI$OORZ
PHWRH[SODLQ"
7DQ\DORRNVDWHDFKRIWKHSOD\HUVWRPDNHVXUHWKH\DUHIROORZLQJKHU

<HDUVDJRP\JUDQGIDWKHUDGYLVHGWKHRYHUORUGRQPDWWHUVRIZL]DUGU\+HKDGNHHQMXGJPHQWLQVXFKDIIDLUVDQGZDVRI
JUHDWDVVLVWDQFHWRWKHDGPLQLVWUDWLRQRI/DQNKPDU%HIRUHKHGLHGP\JUDQGIDWKHUZDVUHVSRQVLEOHIRUWKHGLVPLVVDORID
PDJLFXVHU$WKRODQHDVWHUQHUIURPWKHODQGVRIWKH5HG*RGDQGWKHILUHPDJLFLDQV$WWKDWWLPHWKLVVRUFHUHUYRZHG
UHYHQJHRQWKUHHJHQHUDWLRQVRIWKHKRXVHRI9DOLQRU6RRQDIWHUP\JUDQGIDWKHUGLHG TXLWHVXGGHQO\DQGP\8QFOH,QULNZDV
PXUGHUHG<HDUVSDVVHGZLWKRXWLQFLGHQWXQWLOUHFHQWO\ZKHQP\PRWKHUGLHGRIDVXGGHQLOOQHVV$QGQRZP\IDWKHUOLHV
VWULFNHQZLWKDWHUULEOHPDODG\WKDWWKHSK\VLFLDQVFDQQRWH[SODLQH[FHSWE\EODFNPDJLF,WLVREYLRXVWKDWWKHVRUFHUHUKDV
UHQHZHGKLVFDPSDLJQ ,IZHWDLOWR VWRSWKLVDFFXUVHGPDJLFLDQWKH+RXVHRI9DOLQRUZLOOWDOO7KHZL]DUG$WKROPXVWEH
IRXQGDQGKLVGLDEROLFDOZRUNWHUPLQDWHG/DWHO\WKHUHKDYHEHHQUHSRUWVRIVWUDQJHRFFXUUHQFHVHDVWRIWKHFLW\LQWKH
YLFLQLW\RIWKHPDUVKVKULQHWRWKH5HG*RG3HDVDQWVKDYHVHHQVWUDQJHOLJKWVDQGVKDGRZ\ILJXUHVLQWKLVDUHDRQWKH0DUVK
5RDGMXVWHDVWRIWKH0DUVK*DWH:HWKLQNWKHZL]DUGKDVDODLUQHDUWKHVKULQHRIKLVSDWURQ,I\RXDFFHSWWKLVPLVVLRQ,
PXVWDJDLQDVN\RXWRXQGHUWDNHLWLQVHFUHF\:HGRQRWZDQWLWNQRZQWKDWWKH+RXVHRI9DOLQRULVXQGHUDFXUVH6XFKD
GLVFORVXUHZRXOGUHIOHFWEDGO\RQP\JUDQGIDWKHU
VOHJDF\DQGP\RZQIDWKHU
VUHSXWDWLRQ,WLVIRUWKLVUHDVRQWKDWZHKDYH
UHIUDLQHGIURPXVLQJWKH/DQNKPDUFRQVWDEXODU\

,IWKH3&VKHVLWDWHLQWDNLQJWKHDVVLJQPHQW7DQ\DZLOODGGLQDQHYHQPRUHGLVWUDXJKWYRLFHWKDQVKHKDVEHHQXVLQJ

2K\HVWKHUHLVRQHWKLQJPRUH$IHZGD\VDJRVRPHRQHEURNHLQWRWKHIDPLO\FU\SWLQWKH1REOH'LVWULFWDQGPDGHRIIZLWK
P\JUDQGIDWKHU
VUHPDLQV$V\RXFDQVHHRXUVRUURZDQGGHVSDLUJURZVGDLO\
7DQ\D9DOLQRUWKHQJLYHVWKH3&VWKHJROGUL,NVDQGLPSORUHVWKHPWREHJLQWKHPLVVLRQZLWKKDVWH6KHZLOORIIHUWRPHHW
ZLWKWKHPDJDLQLQWZRGD\VWLPHDWPLGQLJKWRQ%RQHV$OOH\

7KH'0ZLOOQRWHWKDW7DQ\D9DOLQRUEHOLHYHVWKHWDOHRIIHUHGWRWKHDGYHQWXUHUVDWKHUIDWKHU
VVXJJHVWLRQVKHKDV
RPLWWHGWKHWDFWWKDWWKH5HG*RGVKULQHLVRQ9DOLQRUODQG,QSRLQWRIIDFWWKHDXWKRURIWKLVHODERUDWHOLH(VVHQ
9DOLQRU EHOLHYHV WKDW KLV EURWKHU ,QULN LV UHDFKLQJ RXW WR KLP IURP WKH JUDYH 7DQ\D
V IDWKHU KDV UHDVRQHG WKDW
DGYHQWXUHUVPLJKWEHUHOXFWDQWWRJRDIWHUDQXQGHDGVRUFHUHU

&DVWRI0DMRU13&V

,QULN
9DOLQRU
/HYHO)LUH0DJLFLDQ%ODFN:L]DUG

09KS$/&($7'PJRUVSHOO
6WU,QW:LV'H[&RQ&KD
6SHOOV

/HYHODIIHFWQRUPDOILUHVEXUQLQJKDQGVPDJLFPLVVLOHXQVHHQVHUYDQW
/HYHOS\URWHFKQLFVLQYLVLELOLW\NQRFNOHYLWDWH
/HYHOILUHEDOOIODPHDUURZKROGSHUVRQ
/HYHOILUHFKDUPZDOORIILUH
/HYHOPDJLFMDUFRQMXUHHOHPHQWDO ILUH

$WWKLVWLPH,QULN9DOLQRULV\HDUVROGEXWKHORRNVQHDUHU+HLVIHHWWDOOEXWFDUULHVKLPVHOIZLWKDQRWLFHDEOHVWRRS+H
ZHDUV EODFN IORZLQJ UREHV D PHWDO VNXOOFDS EHQHDWK KLV KRRG DQG WKLFN RLOVNLQ ERRWV IRU SORGGLQJ LQ WKH PDUVK +H XVXDOO\
FDUULHVDQROGNQRWWHGVWDIIIURPZKLFKKHFDQSURGXFHDVKRUWIODPHDWZLOOVXIILFLHQWWRLJQLWHDFRPEXVWLEOHZLWKLQWKHVWDII
V
UHDFK+HDOVRHPSOR\VDVKRUWGDJJHU ZKLFKKHFDQKXUO
$URXQGKLVQHFNLVDJROGPHGDOOLRQZLWKUXE\VWXGV'HSLFWLQJDIODPHDQGVZRUGLWLVDQRUQDPHQWRIWKH5HG*RG
$OWKRXJKFXQQLQJ,QULN9DOLQRULVTXLWHLQVDQHDQGKHLVSURQHWRODXJKDORXGIRUOLWWOHDSSDUHQWUHDVRQ:KHQDORQHKHRIWHQ
FDUULHVRQDUXQQLQJFRQYHUVDWLRQ%XWGHVSLWHKLVHFFHQWULFLWLHVKHKDVDPDJQHWLFFKDULVPDDQGKLVVHUYDQWVDUHH[WUHPHO\OR\DO
,QULNLVRIWHQIROORZHGE\0HVWRSKDKLVIDPLOLDUSHW$VSHFLDOKHOOKRXQGVHH0RQVWHU6WDWLVWLFV7DEOHVXFKFUHDWXUHVDUHQRW
XQFRPPRQIDPLOLDUVIRUILUHPDJLFLDQV7KURXJKPDJLF9DOLQRUKDVUDLVHGWKH,QWHOOLJHQFHDQGDELOLWLHVRIWKLVKRXQGDOORZLQJ
0HVWRSKD D KXPDQOLNH XQGHUVWDQGLQJ RI WKH ZRUOG DQG WKH DELOLW\ WR FRPPXQLFDWH WHOHSDWKLFDOO\ ZLWK ,QULN ,Q DGGLWLRQ WKH
DQLPDOFDQFKDQJHLWVYLVDJHDSSHDULQJWREHDVPDOOXQREWUXVLYHPRQJUHOZKHQWKLVVXLWVLWVPDVWHU
VSXUSRVH,QWKLVIRUPKLV
H\HVGRQRWJORZ
1HUND
/HYHO$VVDVVLQ7KLHI

+XPDQPDOH$&09KS$/&($7'PJO$GDJJHUGLUN

6WUOOQWO:LVO'H[O&RQO&KD

1HUND LV ,QULN 9DOLQRU

V FKLHI KHQFKPDQ DQG DQ H[FHOOHQW DVVDVVLQ +H KDV D WKRURXJK NQRZOHGJH RI SRLVRQV LQ DGGLWLRQ WR
RXWVWDQGLQJVNLOOVDVDWKLHI1HUNDFDXVHGWKHGHDWKRI(VVHQ9DOLQRU
VZLIHWKURXJKWKHXVHRIDVORZDFWLQJSRLVRQZKLFKSUR
GXFHGWKHV\PSWRPVRIDGHDGO\WKUHHGD\PDODULDERXW7KHDVVDVVLQVLPSO\SULFNHGWKHODG\
VDUPZLWKDSLQRQHGD\ZKLOHVKH
PDGHKHUZD\WKURXJKFURZGVLQWKHPDUNHWSODFH1HUNDDOVRHQJLQHHUHGWKHFODQGHVWLQHUHPRYDORI$OOPD9DOLQRU
VERG\IURP
WKHIDPLO\FU\SW
1HUNDDWWDFNVDWWRKLWZLWKDWKURZLQJGDJJHU+LVEODGHVDUHSRLVRQWLSSHGRQO\LQWKHHYHQWRIDSODQQHGDVVDVVLQDWLRQ$Q
DPELGH[WURXVILJKWHU1HUNDFDQWKUXVWDQGSDUU\ZLWKKLVGLUNDQGHLWKHUMDERUKXUOKLVGDJJHU$WDQ\RQHWLPHKHFDUULHVVL[
WKURZLQJGDJJHUVLQDVSHFLDOKDUQHVVKROGHURQKLVEDFN
1HUNDZHDUVDGDUNOHDWKHUMHUNLQEURZQOHJJLQJVDQGDGDUNEURZQFDSHRYHURQHVKRXOGHU$WDQ\RQHWLPHKHZLOOEHFDUU\LQJ
GJROGUL,NVLQKLVSRXFK+HZHDUVDJROGQHFNODFHJROGULONVDQGDUXE\ULQJJROGUL,NV1HUND
V$&EUDFHUVRI
GHIHQVH DQG'H[WHULW\ERQXVDOORZKLPDQDUPRUFODVVRI
.UXPD
/HYHO)LJKWHU

+XPDQPDOH$&09KS$/&($7'PJVFLPLWDUWRGDPDJHRQO\E\YLUWXHRI6WUHQJWK

6WU,QW:LV'H[&RQ&KDVFDOHERXQGOHDWKHUMHUNLQ

.UXPD DQG KLV EURWKHU ;XPD VHH QH[W HQWU\ DUH .DGGLVK WULEHVPHQ GHVHUWGZHOOHUV DQG ,QULN 9DOLQRU
V KHQFKPHQ .UXPD
VWDQGVIHHWLQFKHVWDOODQGZHLJKVSRXQGV+HZHDUVEURZQSDQWDORRQVERRWVDVFDOHERXQGOHDWKHUMHUNLQDQGDWXUEDQ
+HKDVGDUNKDLUDVZDUWK\FRPSOH[LRQDQGVOLJKWO\VODQWHGH\HV+HZLHOGVDODUJHVFLPLWDUDQGFDUULHVDGDJJHULQKLVEHOW+LV
SRXFKKROGVGEURQ]HDJROV

;XPD
/HYHO)LJKWHU

+XPDQPDOH$&09KS$/&($7'PJVFLPLWDUWRGDPDJHRQO\

6WU,QW:LV'H[&RQ&KD

VWXGGHGOHDWKHUMHUNLQ
;XPDFORVHO\UHVHPEOHVKLVEURWKHULQVL]HDQGDSSHDUDQFH+HFDUULHVGOEURQ]HDJROVGJROGULONVDQGZHDUVDVROLGJROG
HDUVWXGZLWKDGLDPRQGLQVHWJROGULONV

(QFRXQWHU.H\

7KHIROORZLQJHQFRXQWHUVFRYHUWKHLPSRUWDQWDVSHFWVRIWKLVVFHQDULR%R[HGHQFRXQWHUGHVFULSWLRQV PD\EHUHDGGLUHFWO\WRWKH
SOD\HUV,QRWKHUFDVHVWKH'0PXVWSURYLGHWKHDSSURSULDWHLQIRUPDWLRQIRUWKHWXUQRIHYHQWV
0LGQLJKW0HHWLQJRQ%RQHV$OOH\

$V7DQ\D9DOLQRU
VFDUULDJHOHDYHVWKH3&VDVPDOOGRJUXQVEHKLQGWKHEXJJ\(DFK3&KDVDRFKDQFHRIVSRWWLQJLW
7KLVFUHDWXUHLV,QULN
VIDPLOLDU0HVWRSKD)RUWKHPRPHQWWKHDQLPDO
VWDVNLVWRVKDGRZ&RXQW(VVHQ
VGDXJKWHU
7KH0DUVK*DWH

'XULQJ GD\OLJKW KRXUV WKH 3&V DUH IUHH WR OHDYH /DQNKPDU DW WKHLU OHLVXUH ,I WKH\ OHDYH DW QLJKW WKH\ ZLOO EH DFFRVWHG E\ WZR
JXDUGVPHQDWWKHJDWH7KHPDQLQFKDUJHLV6HUJHDQW&KHYDVDQGKHZLOOUHTXLUHWKHDGYHQWXUHUVWRVWDWHWKHLUEXVLQHVV$OWKRXJK
KHKDVQRUHDVRQWRGHWDLQWKHP&KHYDVZLOOEHFRPHGLIILFXOWE\DVNLQJPDQ\TXHVWLRQV:KDWDUHWKHDGYHQWXUHUVGRLQJ":KDW
GRWKH\KDYHLQWKHLUSDFNV"(WF
$FRXSOHRIEURQ]HDJROVZLOOSURGXFHDFKDQJHLQWKHVHUJHDQW
VGLVSRVLWLRQ+HZLOOEHTXLWHZLOOLQJWRELGWKHSDUW\JRRGQLJKW
DQGWRDQVZHUDQ\TXHVWLRQVWKH\PD\KDYH&KHYDVNQRZV WKHIROORZLQJ
&OXHD$EDQGRIEULJDQGVKDVEHHQZRUNLQJWKH0DUVK5RDGRIODWH
&OXHE6WUDQJHOLJKWVDQGVKDGRZ\ILJXUHVKDYHEHHQVHHQLQWKHDUHDRIWKHPDUVKVKULQHWRWKDWIXQQ\5HG*RG
&OXHF7KHSHDVDQWVWDONRIDOLFKWKDWLQKDELWVWKHPDUVKDJKDVWO\XQGHDGKLJKSULHVWRIWKH(DVWHUQ*RG

7KH'0VKRXOGQRWHWKDWUHHQWHULQJWKHFLW\SUHVHQWVDPRUHVHULRXVSUREOHP'D\RUQLJKWWKHJXDUGVZLOWTXHVWLRQWKHSDUW\LQ

VRPHGHWDLODERXWWKHLUEXVLQHVVLQ/DQNKPDU$EULHILQVSHFWLRQRIWKHFKDUDFWHUV
JHDULVFHUWDLQEXWDFRXSOHRI
JROGQLNVZLOOLQHYLWDEO\VHFXUHVZLIWUHHQWU\,IWKHSDUW\DUULYHVDWQLJKW6HUJHDQW&KHYDVZLOODGPLWWKHSOD\HUV
ZLWKRXWTXHVWLRQLQH[FKDQJHIRUDFRXSOHRIEURQ]HDJROV


2QWKH0DUVK5RDG VHH0DS9

7KHODQGIDOODGMDFHQWWRWKHPDUVKURDGDQGZLWKLQFORVHSUR[LPLW\WR/DQNKPDULVPDUVKOLNHEXWVRPHWKLQJOHVV
WKDQDVZDPS7KHURDGLWVHOIDQGPRVWRIWKHVXUURXQGLQJJURXQGLVTXLWHVROLGDOWKRXJKZHOOFRYHUHGE\WDOO
PDUVK\JUDVVDQGVKUXEV)XUW KHUHDVWSDVWWKHVKULQHRIWKH5HG*RGWKHJURXQGDGMDFHQWWRWKHURDGJLYHVZD\WR
ZLGHVSUHDGVZDPS\FRQGLWLRQVZLWKZDWHUIORZDQGERJV7KHURDGKRZHYHUUHPDLQVVROLGZHOOLQWRWKHHDVW
'D\RUQLJKWWKHUHLVDFKDQFHWKDWWKHVPDOOSDUW\RI DGYHQWXUHUVZLOOEHZD\ODLGE\EULJDQGVDSSUR[LPDWHO\
IHHWZHVWRIWKHVKULQH7KHVHKLJKZD\PHQZLOODPEXVKWKHSDUW\IURPWKHFRYHURIWKHKLJKJUDVVRQHLWKHUVLGH
RIWKHURDGZD\$EDQGRIEULJDQGVDQGRQHEULJDQGOHDGHUZLOORSHQILUHZLWKDUURZDWWDFNVWZRHDFKLQWKHILUVW
PHOHHURXQG
,IWKH3&VIDLOWRWDNHDSSURSULDWHHYDVLYHDFWLRQWKHEULJDQGVZLOOODXQFKDQRWKHUDUURZYROOH\IURPWKHLUFRQFHDOHG
SRVLWLRQVLQWKHWDOOJUDVV:LWKWKHOHDGHUKDQJLQJEDFNDQGGLUHFWLQJWKHDWWDFNWKHDWWDFNHUVZLOOVZDUPWKHSDUW\
RQIRRWZLWKDORQJVZRUGPHOHH,IWKHEULJDQGVORVHRYHUKDOIWKHLUQXPEHUWKHOHDGHUZLOORUGHUDUHWUHDWLQWRWKH
PDUVKWRWKHVRXWKRIWKHURDGZD\
7KH OHDGHURIWKLVEDQGLVDQDVW\IHOORZQDPHG6HLIURQ WKH6ZDPSPDVWHU6HLIURQKDVVWUXFNDGHDOZLWKDQROG
DVVRFLDWHKHNQRZVRQO\DV7KH:HDVHO,QH[FKDQJHIRUDZHHNO\SXUVHRIJROG6HLIURQDQGKLVPHQKDYHDJUHHGWR
NHHS SHRSOH FOHDU RI WKH 5HG *RG VKULQH 7R GDWHWKH EULJDQGV KDYH ZD\ODLGDOOSDVVHUVE\ H[FHSW KHDYLO\DUPHG
SDWUROV DQG FDUDYDQV 7KH :HDVHO KDV DGYLVHG WKHP WR EH DOHUW IRU VPDOO JURXSV RI PHQDWDUPV 2QO\ 6HDIURQW
NQRZVWKHWHUPVRIWKLVDUUDQJHPHQWDQGRQO\KHFDQSURYLGHXVHIXOLQIRUPDWLRQRQWKHGHDOZLWK7KH:HDVHO
7KH:HDVHOLV1HUND,QULN9DOLQRU
VKHQFKPDQ6HLIURQ
VDQGWKH:HDVHO
VUHODWLRQVKLSGDWHVEDFNWRZKHQWKH\KDG
GRQHVRPHIUHHODQFHZRUNWRJHWKHUIRUWKH7KLHYHV*XLOG
$OWKRXJK WKH\ ZRUNWKHPDUVK6HLIURQ
VEULJDQGV DUHEDVHGLQ/DQNKPDUDQGJDLQ DFFHVVWRWKHPDUVKWKURXJKD
WXQQHO XQGHUWKHFLW\ZDOOMXVWVRXWKRIWKHVHFRQGWRZHUVRXWKRIWKH0DUVK*DWH
$ERXWIHHWVRXWKRIWKHDPEXVKVLWHLV6HLIURQ
VPDNHVKLIWFDPSZLWKDILUHSLWDQGWKUHHOHDQWRVWUXFWXUHVPDGH
RIZRRGVXSSRUWVDQGFDQYDV7KUHHZRPHQDQGILYHDGGLWLRQDOEULJDQGVSUHSDUHIRRGKHUHIRUWKHRWKHUV7ZHQW\
IHHWGXHVRXWKRIWKHILUHSLWDQGDSSUR[LPDWHO\WZRIHHWEHORZWKHVXUIDFHRIWKHJURXQGLV6HLIURQVWUHDVXUHFKHVW
+LVWUHDVXUHLQFOXGHVJROGULONVEURQ]HDJROVVLOYHUVPHUGXNVDQGMHZHOU\ZRUWKJROGULONV
,I6HDIURQWLVFDSWXUHGDQGPDGHWRWDONRUEULEHGZLWKDWOHDVWULONVKHZLOODGPLWNQRZLQJWKH:HDVHODQG

VWULNLQJWKHGHDOWRNHHSSHRSOHDZD\IURPWKHVKULQH+HGRHVQRWNQRZ7KH:HDVHO
VZKHUHDERXWVEXWKHVXVSHFWV
WKDWKHLVHLWKHUDWWKHVKULQHRUERR]LQJLQWRZQ6HDIURQWKRZHYHUNQRZVQRWKLQJRI7KH:HDVHO
VFXUUHQWEXVLQHVV
ZLWK,QULNRUZK\WKHVKULQHLVVRLPSRUWDQW
,IWKUHDWHQHG6HDIURQWZLOODGPLWWKDW7KH:HDVHOHQMR\VWKHDOHLQWKH+DQJHG0DQ7DYHUQQRUWKVLGHRI6KDG\
6WUHHWMXVWZHVW RI&DUWHU 6HDIURQWDOVRNQRZVWKDWWKHODQGDERXWWKH5HG*RGVKULQHLVRZQHGE\WKH9DOLQRU
IDPLO\
DP7KH6KULQHRIWKH5HG*RG
6HH0DS9,
$VWKHSDUW\DSSURDFKHVWKHVKULQHUHDGWKHIROORZLQJ
$ERXWKDOID PLOHHDVWRIWKH0DUVK*DWHMXVWQRUWKRIWKHURDGZD\LVDFOHDULQJLQWKHPDUVKJUDVV$RRWHIILJ\
RI D ZDUULRU VLWV LQ WKH PLGVW RI WKLV ODQG $URXQG WKH FHQWHU SLHFH DQG SXQFWXDWLQJ WKH IRXU FRUQHUV RI D VWRQH
SODWIRUPDUHVPDOOHUHIILJLHVRIOLRQ V7KHFHQWUDOILJXUHUHQGHUHGLQEULJKWUHGJUDQLWHLVDUPHGZLWKDILJKWHU
V
MHUNLQDVDEHULQRQHKDQGDQGDGLUNLQWKHRWKHU7KHILQHO\FDUYHGKHDGLVWKDWRIDKDQGVRPHPDQZLWKDSHQFLO
WKLQPXVWDFKHDQGVKDUSIDFLDOIHDWXUHV$WRSWKHKHDGVLW VDVSLNHGKHOPHW
2Q RQH RI WKH VPDOO OLRQ HIILJLHV LV D VWRQH LQVFULSWLRQ ,Q 5HYHUHQFH9DOLQRU $Q\RQH FRQGXFWLQJ D FORVH
H[DPLQDWLRQRIWKHVPDOOHUVWDWXHZLOOKDYHFKDQFHRIGHFLSKHULQJWKHIDGLQJLQVFULSWLRQ
,QWKHQRUWKHDVWFRUQHURIWKHEDVHD IRRWVTXDUHGRRUZD\LVKLQJHGLQZDUGO\8QGHUDQGEHKLQGWKHKDQJLQJPDQH
RIWKHOLRQDVPDOOVWRQHSUHVVXUHSODWHDFWLYDWHVWKHGRRUUHOHDVHPHFKDQLVPRSHQLQJWKHSRUWDODQGUHYHDOLQJVWDLUV
GHVFHQGLQJWRZDUGWKHZHVW
D%XULDO &DYHUQV
7KH VWDLUVOHDGWRDODUJHLURQGRRUDERXWIHHWEHORZWKHJURXQG7KHGRRULVUXVWHGDQGGLVFRORUHGIURPR[L 
GDWLRQFDXVHGE\ODUJHTXDQWLWLHVRIVDOWLQWKHJUHDWPDUVK
7KHOLRQFUHVWDQGWKHIDPLO\QDPH9DOLQRUDUHHWFKHGLQWRWKHGRRUDWH\HOHYHO$ODUJHUXVWHGSDGORFNKDQJVXVH
OHVVO\IURPDKDQGOHULQJRQWKHGRRUWKDWVHHPVQRWWRKDYHEHHQRSHQHGLQ\HDUV
E(QWU\
7XQQHO
3DVWWKHLURQGRRUDURXJKO\KHZQ IRRWFRUULGRUOHDGVLQWRDFDYHUQ7KHWXQQHOLVFROGDQGFODPP\DQGDIDLQW
URWWLQJ VPHOOSHUYDGHVWKHDLU
7KHUHLVQRWKLQJRILPSRUWDQFHKHUH
F7KH7UDS
5HDGWKHIROORZLQJRQO\LIWKHSDUW\LVDFWLYHO\VHDUFKLQJWKHDUHD
+DQJLQJRQWKHZHVWHUQZDOORIWKLVFKDPEHUMXVWLQVLGHWKHGRRULVDWRUFKKROGHU%HORZWKLVILJXUHVHW XQREWUX
VLYHO\LQWKHZDOOLVDVWRQHEDULQFKHVORQJDQGLQFKHVZLGH
7KLVURRPLVWUDSSHGZLWKDFROODSVLEOHIORRU,IWXUQHGWRDYHUWLFDOSRVLWLRQWKHVWRQHEDUWULJJHUVDQHXWUDOL]DWLRQRI
WKHWUDS,IWKHOHYHULVQRWRSHUDWHGDQGSRXQGVRISUHVVXUHLVDSSOLHGWKHWZRE\LIRRWGRRUVLQWKHIORRU
RSHQDQGDQ\RQHVWDQGLQJRQWKHPZLOOIDOOIHHWLQWRDSRRORIZDWHUEHORZ&RXQWHUEDODQFHGZLWKZHLJKWVDQG
SXOOH\VWKHIORRUZLOODXWRPDWLFDOO\UHWXUQWRDIOXVKSRVLWLRQZLWKLQVL[VHFRQGV7KH3&VPXVWUROO'H[WHULW\RUOHVV
RQG
$Q\RQHIORXQGHULQJLQWKHSRROPXVWWUHDGZDWHUWRDYRLGGURZQLQJ:LWKLQWZRURXQGVWKUHHSRLVRQRXVHHOVZLOO
DWWDFNWKHWUDSSHGYLFWLPVLQWKHE\L6IRRWFDYHUQ7KHELWHRIWKHHHOLVSRLVRQRXVDQGDYLFWLPPXVWPDNHD
VDYLQJWKURZYV3RLVRQRUGLHLQG2WXUQV,QWKHZDWHUWKHHHOVZLOOEHWRKLWDKXPDQRLGDQGWKHKXPDQRLG

ZLOOVWULNHWKHHHOVDW7KHZDWHULVIHHWGHHSDQGWKHSOD\HUFKDUDFWHUPXVWVWULNHWKHHHODQGDYRLGGURZQLQJDW
WKHVDPHWLPH
G&DYHRI WKH:DWHU&REUD
0RLVWXUHKDQJVLQWKHDLUDQG\RXFDQIHHOWKHVOLFNQHVVRIWKH
VWHHSOLPHVWRQHZDOOVE\WKHJORVV\JUHHQKXHRQWKHLUIDFHV$
JUHHQLVK\HOORZSRRORIZDWHUILOOVWKHFHQWHURIWKLVFDYHUQ
ZKLFK\RXHVWL PDWHWREHVRPHIHHWZLGHDQGQHDUO\IHHW
ORQJ$OHGJHUXQVDORQJWKHSHULPHWHURIWKHRYDODQGOHDGVWR
WZRSDVVDJHV
7KLVZDWHUFDYHLVKRPHWRWKUHHZDWHUFREUDV$OOELWHVRIWKHVH
FUHDWXUHVDUHYHU\SRLVRQRXVDQGWKHYLFWLPPXVWPDNHDVDYLQJ
WKURZ YV 3RLVRQ RU GLH LQ G URXQGV $ QXPEHU RI VPDOO
ILVVXUHV LQ WKH URFN IRUPDWLRQV DIIRUG YLDEOH H[LWV IRU WKHVH
ZDWHUFUHDWXUHV
,QWKLVHQFRXQWHUWZRRIWKHFREUDVZLOOEHLQWKHZDWHU$&
DQG RQH ZLOO EH FXUOHG XS QHDU WKH HDVW HQWUDQFH WR WKHFDYH
:KLOHLQWKHZDWHUWKHFREUDVZLWKWKHLUFKDPHOHRQOLNHDELOLW\
WR FKDQJH FRORUV DUH YLUWXDOO\ LQYLVLEOH 2Q WKH JURXQG WKH
VHUSHQWVDUH$&DQGFOHDUO\YLVLEOH
6HFUHW'RRU WR
+DYLQJEHHQVHDOHGZLWKVWRQHVDQGPRUWDUIRU\HDUVWKLVFORVHGHQWUDQFHZD\ORRNVFRQVLVWHQWZLWKWKHUHVWRIWKH
ZDOO,WLVFRYHUHGE\OLFKHQDQGQDWXUDOPRVVIRUPDWLRQV3&VGHWHFWWKHHQWUDQFHZD\ZLWKDWRWKHLUQRUPDO
FKDQFHVEXWKDYHDQFKDQFHRIGHWHFWLQJLWLIWKH\FRQGXFWDWDSSLQJSURFHGXUHWKURXJKRXWWKHFDYH
7KHZDOOPXVWEHGLVPDQWOHGE\IRUFHSLFNZRUNGLJJLQJHWFEXWEHFDXVHPXFKRIWKHPRUWDUKDVVXIIHUHGVDOW
GHWHULRUDWLRQWKHZDOOZLOOTXLFNO\FRPHDSDUWDIWHUDQLQLWLDOKROHKDVEHHQSXQFKHG
H7KH6NHOHWRQ&DYH

$IWHUWKH3&VKDYHFRQGXFWHGDFDUHIXOVHDUFKRIWKLVFDYHUQWKH'0VKRXOGUHDGWKHIROORZLQJ
1HDUWKHVRXWKHUQH[LWRIWKLVFDYHUQ\RXVHHDPDQ PDGHREMHFWVWLFNLQJRXWIURPWKHURFN\JURXQG8SRQFORVHU
LQVSHFWLRQWKLVWKLQJDSSHDUVWREHWKHKHHORIDERRW
$IWHU FOHDULQJ DZD\ QXPHURXV VWRQHV URFNV DQG SHEEOHV WKH FKDUDFWHUV ILQG WKH VNHOHWDO UHPDLQV RI WZR ERGLHV
7KHVHDUHWKHFRUSVHVRIWKHWKXJVHPSOR\HGE\(VVHQ9DOLQRUPDQ\\HDUVEHIRUH
7KHFORWKLQJKDVDOOEXWURWWHGDZD\EXWWKHOHDWKHUUDLPHQWVERRWVMHUNLQVEHOWVHWFDUHVWLOOUHFRJQL]DEOH7ZR
FRUURGHGGDJJHUVDUHHYLGHQWLQWKLVPDNHVKLIWJUDYHDVZHOODVDURWWHGRLOVNLQSRXFKILOOHGZLWKWLQ\UXELHVZRUWK
JROGULONV
I&DYHRIWKH*LDQW%DWV
$VWUDQJHDQGXQQHUYLQJVRXQGRIFKLUSLQJH PDQDWHVIURPWKLVFDYHUQ
7KLVFDYH LVKRPH WR JLDQWEDWV ZKLFKDWWDFNRQO\LIWKHLUFDYHUQLVHQWHUHG7KHVHFUHDWXUHVKDYHDWRKLW
ZKLOHDLUERUQHDQGDELWHYLFWLPPXVWPDNHDVDYLQJWKURZYV3RLVRQRUVXIIHUWKHFRQVHTXHQFHVRIDYLUDOLQIHFWLRQ
7KHUHLVDFKDQFHWKDWDYLFWLPZLOOFRQWUDFWUDELHVZLWKLQGD\VRIDIDLOHGVDYLQJWKURZ7KHEDWVH[LWDQG
HQWHUWKURXJKDVPDOOKROHLQWKHFDYHFHLOLQJZKLFKOHDGVWRWKHPDUVKODQGDERYH
J7KH7UHDVXUH&DYH
7KLVZHVWZDUG OHDGLQJWXQQHO RSHQVLQWRDQRWKHUZDWHUFDYH7KHZDWHULVVWLOODQGWHSLGLQWKLVFDYHUQRXVUHVHUYRLU

,QWKHIDUHDVWHUQFRUQHURIWKHSRROQHDUWKHWXQQHOOHGJHDQGMXVWEHORZWKHZDWHULVDFKDLQKRRNHGRQWRDVSLNH
7KHFKDLQLVIHHWORQJDQGLVDWWDFKHGWRDQLURQFKHVWDWWKHERWWRPRIWKHSRRO1HLWKHUWKHFKDLQQRUWKHFKHVW
FDQEHVHHQLQWKHPXUN\ZDWHU%HORQJLQJWR$OPD9DOLQRUWKHWUHDVXUHZDVKLGGHQKHUHIRUHPHUJHQF\XVH7KH
LURQ FKHVW KROGV  JROG ULONV  VLOYHU VPHUGXNV DQG  EURQ]H DJROV $VVXPLQJ WKH\ FDQ VZLP WKH
DGYHQWXUHUVPD\VDIHO\GLYHIRUWKHFKHVW
K:LOO27KH:LVSV
&DYH
$QXPEHURIGDQFLQJDQGGDUWLQJOLJKWVDUHHYLGHQWDWWKHHQGRIWKLVWXQQHO7KUHHRUPRUHWLQ\ILVVXUHVDWWKHFDYH
V
HQGOHDGLQWRGDUNQHVV
7KLVWXQQHOHQGLVKRPHWRWKUHHZL,,RZLVSVZKLFKLQKDELWWKHILVVXUHVLQWKHFDYHZDOO$QLQYHVWLJDWLRQRIWKH
DUHDZLOOFDXVHWKHZLVSVWRDWWDFN8VXDOO\VHHNLQJWKHLUSUH\LQWKHPDUVKODQGWKHZLVSVDUHFXUUHQWO\LQWHUHVWHG
RQO\ LQ SURWHFWLQJ WKHLU ODLU ,I WKH FKDUDFWHUV UHWUHDW WKH VWUDQJH FUHDWXUHV ZLOO QRW SXUVXH WKHP 7KH ZLVSV DUH
LPPXQHWRDOOVSHOOVH[FHSWSURWHFWLRQIURPHYLOPDJLFPLVVLOH DQGPD]H
L7RPE(QWU\7XQQHO
,QWKLVWXQQHO WKHDODUPLQGLFDWHGE\WKHOHWWHU$RQ0DS9,ZDUQVWKHRFFXSDQWVRIMDQGWKDWWKHVHFUHW
GRRULVEHLQJGLVPDQWOHG$WWKHVRXWKHUQHQGRIWKHFRUULGRUVWDQGVDKHDY\LURQGRRUEHDULQJWKHLPDJHRIWKH5HG
*RGDQGWKHOLRQWRNHQRIWKHKRXVHRI9DOLQRU
M6KULQH5RRP
$JDLQVWWKHHDVWHUQZDOORIW KLVFKDPEHUDVPDOOVWDWXHWWHVLPLODUWRWKHODUJHZDUULRUVWDWXHDERYHJURXQGVLWV
DWRSDVWRQHSHGHVWDO 2QDOO VLGHVRIWKH VWDWXHWWH DUH XQOLWUHGFDQGOHVLQ HODERUDWH JROG KROGHUV,QWKHQRUWK 
HDVWHUQDQGQRUWKZHVWHUQFRUQHUVODUJHXSULJKWZRRGHQ VDUFRSKDJLVWDQGWRDKHLJKWRIIHHW)XOO OHQJWKLPDJHV
RQWKHIURQWRIWKHVHFRIIHUVGHSLFWVDYDJHZDUULRUVLQIXOOEDWWOHJHDU$ZRRGHQFKHVWZLWKLURQEUDFHV7HVWVDWRS
DQRWKHUSHGHVWDORQWKHZHVWHUQZDOO$WWKHVRXWKHUQHQGRIWKHFKDPEHUDSRUW FXOOLVEORFNVWKHHQWUDQFHWRDQRWKHU
FKDPEHU
,QULN 9DOLQRU DQG KLV KHQFKPHQ KDYH ODLG D WUDS IRU WKH SDUW\ ;XPD DQG .UXPD WKH .DGGLVK ZDUULRUV DUH
FRQFHDOHG LQVLGH WKH ZRRGHQ FRIIHUV 2QFH WKH SDUW\ HQWHUV WKH FKDPEHU WKHVH IHOORZV ZLOO DWWDFN VDYDJHO\
0HDQZKLOH1HUNDWKHFKLHIKHQFKPDQKXUOVIRXUGDJJHUVDWWKHJURXSWKURXJKWKHSRUWFXOOLVIURPWKHVKDGRZVRI
,IWKHEDWWOHLVQRWJRLQJEDGO\IRUWKH.DGGLVKZDUULRUV1HUNDHQWHUVWKHPHOHHWKURXJKDGRRULQWKHSRUWFXOOLV
2WKHUZLVHKHUHPDLQVLQ
;XPDDQG.UXPDZLOOILJKWWRWKHGHDWKZKLOH1HUNDLIGLUHFWO\LQYROYHGZLOODWWHPSWWRHVFDSHLIWKHILJKWWXUQV
DJDLQVWKLP+LVILUVWFKRLFHIRUUHWUHDWLVEXWKHZLOODWWHPSWDQHVFDSHYLDLLIKHPXVW,IKHLVQRWNLOOHGRU
UHVWUDLQHG1HUNDZLOOOHDYHWKHWRPEDQGFDYHUQZKHQKHLVFRQYLQFHGWKDWWKH3&VZLOOQRWVSRWKLP
'XULQJWKHPHOHH,QULN9DOLQRUDQGKLVIDPLOLDUDUHLQPZDWFKLQJWKHEDWWOHWKURXJKDQXQREWUXVLYHSHHSKROH
9DOLQRUZLOOILUHILYHPDJLFPLVVLOHVDWWKHFKDUDFWHUVIDYRULQJDFOHULFDOWDUJHWRYHURWKHUV7KHUHLVDQFKDQFH
WKDWWKHPDJLFXVHUZLOODWWHPSWDKROGSHUVRQVSHOORQRQHRIWKHILJKWHUV,IWKHEDWWOHJRHVEDGO\IRUKLVPHQ,QULN
9DOLQRUDQGKLVIDPLOLDUZLOOUHWUHDWDQGHYDFXDWHWKHWRPEYLDWKHVHFUHWH[LWIURPP
7KH'0ZLOOQRWHWKDW,QULN9DOLQRUZLOOQRWEHGLUHFWO\DFFRVWHGLQWKLVVFHQDULRDQGZLOOHVFDSHLIWKUHDWHQHGE\WKH
SDUW\
VLQFXUVLRQLQWRWKHEXULDOFDYHUQV)XUWKHUPRUHLWLVZRUWKQRWLQJWKDW9DOLQRUZLOOUHWUDLQIURPXVLQJDQ\RI
KLVIRUPLGDEOHILUHPDJLFVIRUIHDURIGDPDJLQJWKHWRPE
7KHVWDWXHWWHRIWKH5HG*RGUHQGHUHGLQUHGPDUEOHLVDILQHSLHFHRIZRUNZRUWKJROGULONV7KHIRXU
FDQGOHVWLFNVDUHZRUWKJROGULONVHDFK
7KHFKHVWRQWKHZHVWSHGHVWDOFRQWDLQVDUHFRUGVERRNZULWWHQLQWKHKDQGRI$OOPD9DOLQRU7KHYROXPHGLVFXVVHV
$OOPD9DOLQRU
VRULJLQVLQWKHHDVWKLVVWXG\RIPDJLFVDQGORUHDQGKLVGHYRWLRQWRWKH5HG*RG
+LVMRXUQH\LQJWR/DQNKPDUDQGKLVULVHWRSURPLQHQFHDVWKHRYHUORUG
VDGYLVRURQPDJLFV
7KHEXLOGLQJRIWKH5HG*RGVKULQHRQWKH9DOLQRUPDUVKSURSHUW\DQGWKHIDVKLRQLQJRIDVHFUHWIDPLO\WRPELQWKH
FDYHUQVEHORZ

7KHDUFDQHHIIHFWVRIWKHIDPLO\
VSHQGDQWDQGWKHREVFXUHSRZHUVLQYRNHGIURPWKH5HG*RGGXULQJWKHSHQGDQW
V
HQFKDQWPHQW0RVWRIWKLVHQWU\LVLQFRPSUHKHQVLEOHWRWKHSDUW\
$OOPD
VKRSHWKDWWKH9DOLQRUVSURVSHUDQGWKDWWKHVHFUHWWRPEZLOOEHDVDIHDQGVDFUHGUHVWLQJSODFHIRUKLPVHOI
KLVZLIH,QULNDQG(VVHQ
N7KH3RUWFXOOLV

,I1HUNDRFFXSLHVWKHSRUWFXOOLVGRRUZLOOEHORFNHG7KH3&VFDQKRZHYHURSHQWKHSRUWFXOOLVE\ILQGLQJD
KLGGHQOHYHUORFDWHGMXVWZHVWRIWKHJDWHLQM
O7KH&U\SW

,QWKHHDVWUHFHVVRIWKLVFKDPEHUWKHUHDUHWZRVDUFRSKDJLO\LQJVLGHE\VLGHHDVWWRZHVW2QRQHVWRQH FRYHUWKH
PRVWRUQDWHO\VFXOSWHGLVWKHLQVFULS WLRQ$OOPD&RXQW9DOLQRURI/DQNKPDU7KHRWKHUVDUFRSKDJXVEHDUVWKH
ZRUGV 0LQD &RXQWHVV RI 9DOLQRU 7ZR DGGLWLRQDO XQFRYHUHG VDU FRSKDJL OLH LQ HDFK RI WKH VRXWK DQG ZHVW
UHFHVVHV
,QWKHFHQWHU RIWKHVRXWKHUQFKDP EHULVDFDXOGURQIL[HGRQIRXULURQVXS SRUWV$ERYHWKHFDXOGURQKDQJLQJIURP
WKHFHLOLQJE\WZRWKLQFKDLQVLVDGROO OLNHHIILJ\UHVHPEOLQJDPDQ$JROGULQJHQFLUFOHVRQHRIWKHPLQLDWXUHDUPV
RIWKHGROODQGILYHSLQVDUHVWLF NLQJLQWRLWWZRLQWKHOHJVWZRLQWKHVKRXOGHUVDQGRQHLQWKHDEGRPHQ
$JDLQVWWKHZDOOEHWZHHQWKHHDVWDQGVRXWKUHFHVVFKDPEHUVOLHVDVPDOOEHG$EHQFKKROGLQJERWWOHVIODVNV
SHVWOHVDQGDVHWRIVFDOHVVLWVIOXVKDJDLQVWWKHZDOOEHWZHHQWKH VRXWKDQGZHVWDUHDV%HQHDWKWKHEHQFKDUHD
QXPEHURIXQPDUNHGMDUV
7KHVDUFRSKDJXVRQWKHQRUWKVLGHRIWKHHDVWUHFHVVKROGVWKHHDUWKO\UHPDLQVRI$OOPD9DOLQRU$PDVVLYHJROG
FKDLQDQGDOLRQSHQGDQWZRUWKJROGULONVOLHVRQWKHVNHOHWDOIRUP7KHFRIILQEHVLGHLWLVHPSW\EHFDXVH,QULN
9DOLQRUKDVQRW\HWUHPRYHGKLVPRWKHU
VUHPDLQVIURPWKHWRZQFU\SW,IWKHSDUW\UHPRYHVWKHSHQGDQWWKH
VNHOHWRQZLOODQLPDWHGQLJKWVODWHULQPXPP\IRUP$WWUDFWHGE\WKHSHQGDQWWKHPXPP\ZLOOVWDONWKHSDUW\
LQWR/DQNKPDULIQHFHVVDU\DQGDWWHPSWWRUHFRYHULWVIDPLO\V\PERO,IWKHDUWLIDFWLVKXUOHGWRZDUGWKHPXPP\
WKHXQGHDG$OOPDZLOOSLFNLWXSDQGZDONDZD\
,IWKHLWHPKDVDOUHDG\EHHQVROGWRDIHQFHWKHPXPP\DXWRPDWLFDOO\UHFRYHUVLW7KHQH[WGD\WKHIHQFHZLOOEH
GLVFRYHUHGGHDGZLWKDORRNRIDEVROXWHWHUURULQKLVH\HV,IWKHIHQFHKDSSHQVWREH2JRWKH%OLQGRUDVLPLODU
SRSXODUFKDUDFWHURI/DQNKPDUDVVXPH2JRKDGWLPHWRVHOOWKHLWHPWRDPLQRUIHQFH
7KHFDXOGURQFRQWDLQV DVWUDQJHDQGVLFNHQLQJVROXWLRQXVHGLQWKHPDNLQJRIDPDJLFDOILUH7KHDFWXDOIXQFWLRQVRI
WKHFDXOGURQDUHNQRZQRQO\WR,QULN9DOLQRU
7KHKDQJLQJGROOILJXUHLVDQHIILJ\RI(VVHQ9DOLQRU7KHILQJHUULQJDURXQGWKHGROO
VDUPEHDUVWKHWRNHQRIWKH
OLRQDQGWKHLQLWLDOV(9,QULNKDVEHHQXVLQJWKHHIILJ\RIKLVEURWKHULQWKHSXUVXLWRIEODFNPDJLFDQGUHYHQJH
7KHULQJZRUWKILYHJROGULONVZDVVWROHQIURP(VVHQ9DOLQRUE\1HUNDDQGLVWKHSHUVRQDOLWHPUHTXLUHGWRJLYH
WKHGROOOLIH7KH SLQVKDYHFDXVHG&RXQW(VVHQ
VSDLQDQGVXIIHULQJDQGRQFHWKHVHLWHPVDUHUHPRYHGIURPWKH
GROO(VVHQ
VWRUPHQWZLOOFHDVHDQGWKHEODFNFKDUPZLOOEHEURNHQ2QO\,QULN9DOLQRUFDQUHQHZLW
7KHEHGLVWKHPDFDEUHVOHHSLQJVWDWLRQRI,QULNKLPVHOI%HQHDWKWKHEHGLVDORFNHGFKHVWFRQWDLQLQJLURQWLNV
LQDVDFNWKUHHEURQ]HDJROVDQGDGDUNUREHZLWKDKRRG,QKDVWH,QULNPDGHRIIZLWKWKHYDOXDEOHFRQWHQWVRIWKH
FKHVWGLVGDLQLQJWKHLURQFRLQVDQGGURSSLQJWKHWKUHHDJROV
7KH LWHPV RQ WKH ZRUNEHQFK ILJXUH LQ ,QULN
V DOFKHP\ 7KH\ LQFOXGH RQH ERWWOH RI DFLG RQH ERWWOH RI KHPORFN
SRLVRQRQHIODVNRIOL]DUGEORRGRQHIODVNRIFREUDYHQRPDQGRQHIODVNRIVDOLQHVROXWLRQ)RXUMDUVKROGRQH
XQLWRIGHDGIURJVRQHXQLWRIOL]DUGWRQJXHVRQHXQLWRIEXOOV
EORRGDQGRQHXQLWRIVXOSKXUVROXWLRQ
,QWKH ZHVWHUQDOFRYHRILVDE\IRRWVHFWLRQRIZDOOZKLFKLVDVHFUHWSRUWDO+LQJHGRQWKHZHVWVLGHDQG
RSHQLQJLQWRWKHVS\LQJURRPRIPWRDFRUULGRUDQGILQDOO\DQH[LWWKHSRUWDOZLOODXWRPDWLFDOO\EHFRPHIOXVKZLWK
WKHZDOOZKHQRSHQHG
P6S\LQJ5RRP

$QRWKHURI,QULN
VUHFHQWLQQRYDWLRQVWZRVOLGLQJSDQHOVRQHDWH\HDQGWKHRWKHUDWZDLVWOHYHOPD\EHPRYHGWR
UHYHDOSHHSKROHVORRNLQJLQWRFKDPEHUM
,IWKH3&VH[DPLQHWKHJURXQGLQWKLVVPDOOVSDFHWKH\ZLOOILQGDOHDWKHUSRXFKDSDFNGURSSHGE\,QULNLQKLVKDVW\
UHWUHDW7KHSRXFKFRQWDLQVWKHPDJLFXVHU
VGLDU\%HIRUHUHYHDOLQJZKDWWKHGDLU\VD\VWKH'0VKRXOGPDNHFOHDU

WKDWLWFRQWDLQVRQHFRQWLQXRXVHQWU\)XUWKHUPRUHWKHLQNTXDOLW\VXJJHVWVWKDWWKHHQWU\ZDVZULWWHQTXLWHUHFHQWO\
7KDWGHYLO+HWKRXJKWKH
GILQLVKHGPHEXWE\WKH5HG*RG,
PDOLYH:HOOGR,UHPHPEHULW"2IFRXUVH7ZHQW\
\HDUVDJRLQWKH\HDURIWKHVHUSHQW,UHFRUGLWQRZVRWK DWWKHWUXWKZLOOKDYHDYRLFH
0\IDWKHU&RXQW$OOPD9DOLQRUGLHGZKLOH,ZDVDZD\LQWKH(DVWVWXG\LQJWKHQHFURPDQWLFDUWVXQGHUWKHILUH
PDJLFLDQV:KHQP\IDPLO\VHQWPH ZRUGRIP\IDWKHU
VGHDWK,UHWXUQHGWRWKH:HVWWRWDNHXSP\ELUWKULJKW$ VWKH
HOGHVWVRQLWZDV,ZKRVKRXOGKDYHEHHQ&RXQW9DOLQRUDQGQRWWKDWPRQH\ JUXEELQJWLWWOHVZLQH(VVHQ
2QWKHURDGWR/DQNKPDU,VWRSSHGDWWKHPDUVKVKULQHWRSD\P\UHVSHFWVWRP\IDWKHUIRU,NQHZLWZDVKLVZLVKWR
EHEXULHGLQWKHVHFUHWIDPLO\ FU\SW
%XWP\VFKHPLQJEURWKHUDQWLFL SDWHGPH+HDQGWZRVFRXQGUHOVDFFRVWHGPHLQWKHFDYHUQVDQGWKHQEXULHGPH
DOLYHLQWKHYDXOW2KVRFROGZDVWKHVWRQHVDUFRSKDJXVWKDWHQFORVHGPHLQWKHERZHOVRIWKHHDUWK
%XWWKHOLYLQJFRUSVHHVFDSHGLWV WRPE6FUDWFKLQJFODZLQJDQGVFUDS LQJP\VHOIWRWKHERQH,IUHHGP\VHOIIURPWKH
ERQGVDQGSXVKHGDVLGHWKHVWRQHFRIILQOLG,PXVWKDYHEHHQKDOIGHDGEXWVWLOO,VHDUFKHGIRUDZD\RXWRIWKDWFROG
VWRQHRIHWHUQDOGHDWK7RP\KRUURU,GLVFRYHUHGWK DWP\GHDUEURWKHUDQGKLVKRRGOXPVKDGEULFNHG XSWKHHQWU\
IURPWKHZDWHUFDYH
,GHVSDLUHGXQWLO,KDSSHQHGXSRQDZHDNQHVVLQWKHFU\SWZDOO$IWHUEDVK LQJDQGGLJJLQJZLWKDVWRQH,EURNH
WKURXJK WKH ZDOO DQG IRXQG DQRWKHU QDU URZ WXQQHO OHDGLQJ RXW RI WKH FU\SW $IWHU ILYH GD\V RI WRUPHQW , ILQDOO\
HPHUJHGIURPWKHJURXQGDOLYH$OLYHE\WKH5HG*RG
,WKRXJKWWKHQWRKDYHP\UHYHQJHWRSUHVHQWP\VHOIWRWKHRYHUORUGDQGKDYH(VVHQDUUHVWHG%XW,KHDUGDYRLFH
<HVLWZDVDYRLFH
:DLW
LWVD LGZDLWXQWLOGHDU(VVHQKDVKDGWLPHWRHQMR\KLVWLWOHVDQGODQG:DLW,QULNDQG
WKHQVWULNH

,UHWXUQHGWRWKHHDVWDQGUHQHZHGP\XQILQLVKHGVWXG\RIPDJLFV7KHILUHPDJLFLDQVGHVSDLUHGEHFDXVH,WXUQHGWR
WKHGDUNVLGH2K\HV,OHDUQHGWKHIL UHPDJLFVEXW,DOVROHDUQHGWKHVHFUHWRIWKHEODFNFXUVHWKHGHDWKWKDWVWHDOV
DPDQ
VOLIHIURPDIDU7ZHQW\\HDUVSDVVHGEHIRUH,UHWXUQHGWR/DQNKPDU
0\PDQ1HUNDPXUGHUHG(VVHQ
VVLOO\ZLIHZKLOH,PDGHP\ODLUKHUHLQWKHPDUVKVKULQH:KDWSHU IHFWMXVWLFH
5HDFKLQJRXWIURPWKHJUDYHWRKDYHP\UHYHQJHRQP\GHDUEURWKHU
,FDQVHHKLPQRZZULWKLQJLQDJRQ\ZKLOHWKHSK\VLFLDQVVWDQGDURXQGKHOSOHVV+HNQRZVLW
VPHKHNQRZV,
YH
FRPHEDFNIURPWKHGHDGWRVORZO\ZULQJWKHOLIHRXWRIKLP ,UHMRLFHLQKLVWHUURU

$IWHUWKH3&VKDYHUHDGWKHGLDU\WKH\QRWLFH,QULN
VIRRWSULQWVOHDGLQJWRWKHH[LW)URPWKHLUVKDUSGHWDLOWKH3&VFDQWHOOWKH\
ZHUHUDWKHUUHFHQWO\VHW7KHSDUW\VKRXOGWKHQIROORZWKHSULQWVWKURXJKWKHQDUURZFRUULGRUDQGWRDFUXGHZRRGHQODGGHUDQG
WKHH[LWDERYH$IODWURFNZKLFKFDQHDVLO\EHPRYHGE\RQHSHUVRQFRYHUVWKHRSHQLQJWRWKHWXQQHO
7KHWUDLOZLOOWKHQEHORVWLQWKHPDUVK
7KH ILUVW FKDUDFWHU WR HPHUJH IURP WKH VHFUHW WXQQHO ZLOO KDYH D  FKDQFH RI VHHLQJ D VPDOO GRJ DERXW  IHHW DZD\ ,I WKH
DGYHQWXUHUVDZWKHGRJLQ%RQHV$OOH\KHZLOOUHFRJQL]HLWDVWKHDQLPDO7KHFUHDWXUHLV0HVWRSKD,QULN
VIDPLOLDU
%\ QRZ ,QULN 9DOLQRU LV ZHOO RQ WKH ZD\ WR /DQNKPDU 7KH HQFKDQWHG GRJ ZLOO GDUW DIWHU KLV PDVWHU DQG UHSRUW RQ WKHSDUW\
V
SURJUHVV2QO\DQDFFRPSOLVKHGUDQJHUZLOOKDYHDQ\FKDQFHRIWUDFNLQJWKHFUHDWXUHZKLFKIROORZVWKHVHFUHWEULJDQGURXWHDQG
HQWU\LQWR/DQNKPDU

)LQLVKLQJ&KDSWHU

:LWK KLV VHFUHW ODLU XQFRYHUHG DQG KLVEODFN PDJLF SUHHPSWHG ,QULN 9DOLQRUPXVW QRZDFWVZLIWO\WRDFFRPSOLVK KLVUHYHQJH
,QULN SODQV WR VOD\ (VVHQ DW PLGQLJKW DW WKH VDPH WLPH WKDW WKH DGYHQWXUHUV SODQ WR UHQGH]YRXV ZLWK 7DQ\D 9DOLQRU LQ %RQHV
$OOH\0HVWRSKDZLOOEHWKHLQVWUXPHQWRIKLVZUDWK
7KHIROORZLQJHSLORJXHVKRXOGFRYHUDOOWKHSRVVLELOLWLHVLQWKLVVFHQDULR7KH20LVDGYLVHGWRNHHSDFDUHIXOWUDFNRIWLPH4XLWH
SRVVLEO\WKHFKDUDFWHUVPD\QRWKDYHWLPHWRPDNHDQ\DWWHPSWWRVDYH(VVHQ9DOLQRUVKRXOGWKH\ZLVK

6DYLQJ(VVHQ9DOLQRU
V/LIH
7UDFLQJ,QULN9DOLQRULVQRWSRVVLEOH7KHPDJLFXVHUKDVWDNHQUHIXJHLQDVHFUHWKLGHDZD\LQWKHQRUWKGRFNVGLVWULFW7RVDYH
(VVHQ9DOLQRUWKHSDUW\ PXVWLQWHUFHSW 0HVWRSKDSULRUWRWKHLUVHFRQGPHHWLQJZLWK7DQ\D9DOLQRU,IWKHFKDUDFWHUVFRQGXFWD
VWDNHRXWRIWKH9DOLQRUUHVLGHQFHRQ5R\DO5RDGWKH\FDQDFFRVWWKHDQLPDODWILYHPLQXWHVWRPLGQLJKW
,I 0HVWRSKD LV QRW DWWDFNHG WKH KHOOKRXQG ZLOOVFUDWFKWKH9DOLQRU GRRUXQWLOD VHUYDQWWDNHVSLW\RQWKH SRRUOLWWOHGRJ2QFH
DGPLWWHG0HVWRSKDZLOOVFDPSHUWR(VVHQ9DOLQRU
VEHGURRPDVVXPHKHOOKRXQGIRUPDQGVOD\WKHFRXQW

,QWHUFHSWLQJ WKH KRXQG LV WKH RQO\ ZD\ RI GHOD\LQJ (VVHQ 9DOLQRU
V GHDWK,I 0HVWRSKD LVSUHYHQWHGIURPVOD\LQJ
(VVHQ WKHQ ,QULN ZLOO VXEVHTXHQWO\ GHVWUR\ KLV EURWKHU ZLWKLQ  KRXUV E\ ODXQFKLQJ DILUHEDOO DW WKH FRXQW
V
FDUULDJH7KHDVVDVVLQDWLRQZLOOWDNHSODFHLQDFURZGHGVWUHHWZKLOHWKHFRXQWLVWUDYHOLQJWRWKH5DLQERZ3DODFH
QHDUNLQJV5RDG,QULN9DOLQRUZLOOHVFDSHWKHVFHQHDPLGWKHFURZG
VSDQLF

5HQGH]YRXVZLWK7DQ\D9DOLQRULQ%RQHV$OOH\
$W WKLV PHHWLQJ WKH \RXQJ ODG\ ZLOO KDYH  JROG ULONV WR RIIHU WKH DGYHQWXUHUV LQ H[FKDQJH IRU D YDOXDEOH UHSRUW RQ WKHLU
LQYHVWLJDWLRQ6KHSODQVWRGHOLYHUWKHEDODQFHJROGULONVZKHQWKHSDUW\FDQSURYHWKDWWKHHYLOPDJLFXVHULVGHDG
,I WKH FKDUDFWHUV SURGXFH ,QULN
V GLDU\ DQG H[SODLQ WKH ZKROH VRUGLG VWRU\ 7DQ\D ZLOO EH YLVLEO\ VKDWWHUHG 6KH ZLOO UHIXVH WR
EHOLHYHLWDQGGHPDQGDQRSSRUWXQLW\WRVWXG\WKHMRXUQDODQGWDONZLWKKHUIDWKHU
,I WKH VWRU\ LV WUXH VKH ZLOO DJUHH WR SD\ WKH FKDUDFWHUV WKH UHVW RI WKHLU IHH LQ  KRXUV DW WKH VDPH ORFDWLRQ ,I WKH FKDUDFWHUV
GHPDQGPRUHPRQH\IURPWKH9DOLQRUVE\ZD\RIEODFNPDLOVKHZLOODJUHHWRGLVFXVVLWZLWKKHUIDWKHUDQGUHSRUWLQKRXUVLQ
WKHXVXDOIDVKLRQ$IWHUSD\LQJWKHULONVDQGEHIRUHOHDYLQJ7DQ\DZLOODVNWKHFKDUDFWHUVWRJLYHKHUWKHGLDU\,IWKH\UHIXVHVKH
ZLOOOHDYHLQDQHYHQPRUHDJLWDWHGVWDWH
7KH'0VKRXOGQRWHWKDWDWWKHYHU\PRPHQWRIWKLVVHFRQGPHHWLQJ0HVWRSKDPD\ EHVOD\LQJ&RXQW(VVHQ

7KLUG0HHWLQJZLWK7DQ\D9DOLQRU
KRXUVODWHU
2QWKLVRFFDVLRQ7DQ\D9DOLQRUZLOOQRWEHSUHVHQWLQWKHFDUULDJH,QVWHDGKHUROGVHUYDQWPDQZLOOLQIRUPWKHFKDUDFWHUVWKDW
&RXQW(VVHQ9DOLQRULVGHDGDQGWKDW/DG\7DQ\DLVLQGLVSRVHG,QSRLQWRIIDFW7DQ\D9DOLQRUQRZIHDUVIRUKHUOLIH
,I7DQ\DLVQRWLQSRVVHVVLRQRI,QULN
VGLDU\KHUVHUYDQWZLOORIIHUWKHDGYHQWXUHUVWKHEDODQFHRIWKHLUIHHJROGULONVIRU
WKHMRXUQDO,IWKHFKDUDFWHUVKROGRXWIRUPRUHPRQH\ WKHVHUYDQWZLOORIIHUWKHPDQRWKHUJROGULONVEXWQRPRUH7KHVHUYDQW
ZLOOH[SODLQWKDWZLWKWKHGHDWKRIWKHFRXQWWKHGLDU\LVRIOHVVFRQVHTXHQFH
,Q DQ\ HYHQWWKHROG VHUYDQWZLOO JLYHWKHSDUW\DWOHDVWJROGULONV7KHGULYHUZLOOWKHQZLVNDZD\LQWRWKHQLJKWFDOOLQJ
EDFN\RXUGHDOLQJVZLWKWKH9DOLQRUVDUHQRZDWDQHQG

9LVLWWRWKH+DQJHG0DQ7DYHUQVHH0DS;
,I 1HUND ,QULN
V KHQFKPDQ KDV VXUYLYHG WKH
FKDUDFWHUVPD\ZLVKWRWUDFNKLPWKURXJKDWULSWR
WKH+DQJHG0DQ7DYHUQ RQWKHQRUWKVLGHRI6KDG\
6WUHHW MXVW ZHVW RI &DUWHU ,I WKH YLVLW LV PDGH
EHWZHHQGXVNDQGPLGQLJKWWKHFKDUDFWHUVZLOOILQG
WKH IHOORZ VLWWLQJ E\ KLPVHOI DW D FRUQHU WDEOH
QXUVLQJDQDOH,IFRQIURQWHGLQWKHSXE1HUNDZLOO
GLVDYRZ DQ\ NQRZOHGJH RI WKH FKDUDFWHUV DQG KH
ZLOO UHIXVH WR HQJDJH LQ DQ\ VRUW RI PHOHH ,I WKH
FKDUDFWHUVPDNHDIXVVWKHSDWURQZLOOZDUQWKHPWR
SLSHGRZQ
,I WKH 3&V OHDYH 1HUND DORQH DQG ZDLW IRU KLP WR
OHDYH DIWHU PLGQLJKW KH ZLOO ZDON ZHVW RQ 6KDG\
6WUHHWDQGWKHQFXWWKURXJKDODQHZD\RQKLVZD\WR&XWWKURDW$OOH\SDVW:KRUH6WUHHW7KHYLOODLQOLYHVDWWKHHQG
RIWKHVHFRQGODQHZD\VHH0DS,;DUHD1
,I WKH 3&V FDUU\ KLPRXWRIWKH +DQJPDQ RULI WKH\ DWWDFNKLPRQKLVZD\KRPH1HUNDZLOORIIHUWKHIROORZLQJ
/RRN KHUHP\IULHQGVGRQ
WFRQFHUQ\RXUVHOIZLWK(VVHQ9DOLQRU+H
VDGHDGPDQ

7KH3RVWKXPRXV)DWHRI$OOPD9DOLQRU
,QWKHHYHQWWKHXQGHDGIRUPRI$OOPDPDQDJHVWRUHFRYHULWVIDPLO\SHQGDQWWKHZDONLQJFRUSVHZLOOVHHNUHYHQJH
DJDLQVWKLVGLVOR\DOVRQ7KURXJKWKHVHZHUVLWZLOOUHDFKWKH9DOLQRUV
HVWDWHGXULQJWKHQH[WQLJKWDQGDWWHPSWWR
PDVVDFUHDQ\RQHLWILQGVWKHUH$OOPDZLOOWDNHKLVVRQ
VERG\IURPKLVIUHVKJUDYHLI(VVHQKDVDOUHDG\EHHQEXULHG
$OOPDZLOOWKHQKHDGWRZDUGWKHFLW\FDWDFRPEV7KHUHLQZD\VRQO\XQGHDGNQRZLWZLOOIRUHYHUWRUPHQW(VVHQ
V
VRXODQGKDXQWWKHGLVPDOXQGHUZRUOGLQHWHUQDODQGXWWHUVRUURZ
7KH)DWHRI7DQ\D9DOLQRU
$IWHUDFRPSOHWHLQYHVWLJDWLRQRI(VVHQ9DOLQRU
VGHDWK7DQ\D9DOLQRUZLOODGPLWWRWKHDXWKRULWLHVWKHRYHUORUG
V
LQYHVWLJDWRUVWKDWKHUXQFOHLVWKHNLOOHUZLWKUHYHQJHDVKLVPRWLYH+HQFHIRUWK,QULN9DOLQRUWKHRXWODZZLOOEH
ZDQWHGIRUPXUGHU
,IWKHXQGHDGIRUPRI$OOPDKDVDWWDFNHGWKHIDPLO\HVWDWHDQGWDNHQ(VVHQ
VERG\DZD\7DQ\DPD\KLUHWKHSDUW\WR
UHFRYHUDQGJXDUGWKHERG\XQWLOWKHLQYHVWLJDWLRQLVFRPSOHWHG8QWLOGHVWUR\HG$OOPDZLOOSHUVLVWHQWO\VHHNWRWDNH
(VVHQ
VFRUSVHEDFNWRWKHFDWDFRPEV
:LWKWKHPDOHOLQHRI9DOLQRUGLPLQLVKHGWKHKRXVHRI9DOLQRUZLOOORVHLWVSUHIHUUHGSRVLWLRQLQ/DQNKPDU/DG\
7DQ\DZLOOFRQVROLGDWHWKHIDPLO\KROGLQJVVHOOWKHDFFXUVHGHVWDWH
VKRXVHDQGSURSHUWLHVDQGWKHQOHDYH/DQNKPDU
IRUKHUJUDQGIDWKHU
VKRPHODQGLQWKH(DVW

7KH)DWHRI,QULN9DOLQRU
$VDNQRZQPXUGHUHUDQGIXJLWLYH,QULN9DOLQRUZLOOEHIRUFHGWRJRXQGHUJURXQGLQ/DQNKPDU6WLOOGLVLQKHULWHG
DQGQRZGHVSLVHGDVDNLOOHU,QULNZLOOHPEUDFHDGDUNHUDQGHYHQPRUHWZLVWHGOLIHLQWKHXQGHUEHOO\RIWKHFLW\
6RRQDIWHU&RXQW(VVHQ
VGHDWKWKHOHDGHURIWKHDGYHQWXUHUVZLOOUHFHLYHDQRWHIURPWKHEDUPDQDWWKH6LOYHU(HO
7DYHUQ7KHEDUNHHSZLOOVLPSO\VD\WKDWDQROGPDQOHIWWKHOHWWHUDQGWKHQGLVDSSHDUHG
:HOOP\IULHQGV\RXWKRXJKW\RXFRXOGVDYHWKHOLIHRIWKHGHDUFRXQWGLG\RX":KDWIROO\'RQ
W\ RXNQRZEHWWHU
WKDQWRFRPHEHWZHHQWKHGUDJRQDQGLWVSUH\"<RXKDYHGDUHGWRFURVVP\SDWKDQG,ZRQ
WVRRQIRUJHWLW3HUKDSV
ZH
OOPHHWDJDLQZKHQ\RXOHDVWH[SHFWLW
:LWKDOOGHVHUYLQJZLVKHV
,9

&KDSWHU5(78512)
7+(5$76
E\6WHYH0HFFDDQG.HQ5ROVWRQ

'XQJHRQ0DVWHU
V%DFNJURXQG

'HHSEHORZWKHVWUHHWVRI/DQNKPDUDQGH[LVWLQJLQWKHVHZHUV\VWHPRIWKHFLW\LVWKH5DW.LQJGRPRI/DQNKPDU
%HORZ2QFHHQHPLHVWKHURGHQWDQGKXPDQFLYLOL]DWLRQVKDYHSHDFHIXOO\FRH[LVWHGVLQFHWKHODVW5DW+XPDQ:DU
VRPH\HDUVDJR
5HFHQWO\KRZHYHUDQXPEHURIJUDLQVWRUDJHKRXVHVLQ/DQNKPDUKDYHEHHQDWWDFNHGDQGWKHJUDLQKDXOHGRIIE\
UDWV :LWK WKH IRRG VXSSO\ RI DOO RI /DQNKPDU LQ GDQJHU WKH &LW\ &RXQFLO FDOOV RQ 1HZKZRQ
V PRVW FHOHEUDWHG
KHURHV)DIKUGDQG*UD\0RXVHUWRHQGWKHDFWVRIWHUURULVPDQGDYRLGDIXOOVFDOHZDU
%XW/DQNKPDULVLQPRUHWURXEOHWKHQDQ\RQHKDGLPDJLQHG)DIKUGDQG*UD\0RXVHUDUHPLVVLQJDQGLWDSSHDUVWKDW
WKH\KDYHEHHQNLGQDSSHG
7KHNLGQDSSLQJDQGWKHUDLGVRQWKHVWRUDJHKRXVHVZHUHSHUSHWUDWHGE\+LVYLQDZHUHUDWDQGDQDUP\RIODUJHDOLHQ
OOWKPDULDQ UDWV WKDW DUH FODQGHVWLQHO\ EDVLQJ WKHLU RSHUDWLRQV IURP D QXPEHU RI DEDQGRQHG WXQQHOV LQ /DQNKPDU
%HORZ$LGHGE\(UDVWXVDQDYDWDURIWKHOOWKPDULDQUDWJRG+LVYLQDQGKLVDUP\VHHNWKHFRQTXHVWRI/DQNKPDU

+LVYLQDQGWKH5DW3ODJXH

+LVYLQLVFKDLUPDQRIWKH&RXQFLORIIRU$OO5DWV$IRUPHUUXOHURI/DQNKPDUDQGPRWLYDWHGE\JUHHGWKHOXVW
IRU SRZHU DQG UDW SULGH +LVYLQ RQFH WULHG WR FRQTXHU /DQNKPDU ZLWK UDW OHJLRQV %XW WKH KXPDQV DLGHG
WUHPHQGRXVO\E\)DIKUGDQG*UD\0RXVHUGHDOWWKHUDWVDKRUULEOHGHIHDW7KHUDWNLQJGRPDQGLWVLQKDELWDQWVZHUH
LQGHOLEO\VFDUHGDQGSURPSWHGE\LQWHUQDOSUHVVXUHV+LVYLQH[LOHGKLPVHOIIURPWKLVUDWODQG
$WWKHHQGRIWKHZDUWKH5DW+XPDQ3HDFH7UHDW\ZDVVLJQHG$QGDOWKRXJKGLVWUXVWDQGKDWUHGOLQJHUEHWZHHQWKH
WZRJURXSVWKHIHDURIDQRWKHUFDUQDJHKDVNHSWERWKKXPDQVDQGUDWVUHODWLYHO\UHVSHFWIXORIWKHWUHDW\
'XULQJWKH\HDUVVLQFHWKHZDU+LVYLQKDVEHHQOLYLQJLQ,OWKPDUD1HKZRQFLW\VLPLODUWR/DQNKPDUDOEHLWDELW
VPDOOHUVHH 6RXUFHERRNSDJH%URRGLQJRYHUKLVGHIHDWLWZDVWKHUHWKDW+LVYLQ
VVSLULWZDVUHERUQZKHQKH
FRQYHUWHGWRWKHUHOLJLRQRIWKHOOWKPDULDQ5DW*RG
,QVWLOOHG ZLWK D QHZ UHOLJLRXV IHUYRU GXULQJ WKH ODVW QXPEHU RI \HDUV +LVYLQ KDV EHHQ SODQQLQJ KLV UHYHQJH +H
WUDLQHG DQ HOLWH FRUS RI OOWKPDULDQ UDWV D SDUWLFXODUO\ ODUJH DQG YLFLRXV EUHHG DQG KDYLQJ SURFODLPHG D UHOLJLRXV
FUXVDGH WR FRQYHUW WKH EHLQJV RI /DQNKPDU +LVYLQ UHFHLYHG IURP WKH 5DW *RG (UDVWXV DQ DYDWDU FDSDEOH RI
H[SDQGLQJWRIRXUWLPHVLWVQRUPDOUDWVL]H
$UPHGDQGUHDG\IRUFRQTXHVW+LVYLQKDGWKHGHVSRLOHUVRIKLVILUVWFRQTXHVWDWWHPSWNLGQDSSHG1RZZLWKOLWWOHLQ
WKHZD\WRVWRSKLP+LVYLQVHWWKHSODQVIRUKLVUHYHQJHDQGWKH5DW*RG
VFUXVDGHLQPRWLRQ

$GYHQWXUH6XPPDU\

$WWKHUHTXHVWRIWKHRYHUORUGDJURXSRIDGYHQWXUHUVLVJDWKHUHGWRLQYHVWLJDWHWKHUXPRUHGGLVDSSHDUDQFHRI)DIKUG
DQG*UD\0RXVHU)URPFOXHVSURYLGHGE\2JRWKH %OLQGDSURPLQHQWIHQFHWKHWUDLOOHDGVWRDGLVUHSXWDEOHVDLORU
DQGGRFNZRUNHU*XVWLOORWKHDEGXFWRURIWKHGXR
*XVWLOORSURYLGHVWZRFOXHV'UXJJHGDQGERXQGKHWHOOVWKH3&V)DIKUGDQG*UD\0RXVHUZHUHGHOLYHUHGWRWKH
DEDQGRQHGUHVLGHQFHRI +LVYLQ
7KHVHFRQGFOXHLV*UD\0RXVHU
VFORDNZKLFKWKH3&VILQGLQ*XVWLOOR
VWHQHPHQW:LWKWKHFORDNFRQWDLQLQJDQRWH
WKHSDUW\LVOHDGWRWKHWDLORU1DWWLF1LPEOHILQJHUV1LPEOHILQJHUVJLYHVWKH3&VDSDFNDJHFRQWDLQLQJDZDUQLQJWR
WKH*UD\0RXVHUDERXWURGHQWSUREOHPVLQ/DQNKPDU%HORZDQGDQXPEHURIGLPLQXWLRQSRWLRQVZKLFKZLOODOORZ
WKH3&VWRWUDYHOLQWKHVPDOOWXQQHOVWKDWFRPSULVHWKHUDWNLQJGRP
,QWKHEDVHPHQWRI+LVYLQ
VROGKRPHWKH3&VIROORZDWUDLOZKLFKOHDGVLQWRWKHVHZHUVRI/DQNKPDU%HORZ$IWHU
VHYHUDOHQFRXQWHUVWKH3&VDUHFRQIURQWHGE\&KLYHVDUDWVSRNHVSHUVRQ
$ODUPHGE\WKHSUHVHQFHRIKXPDQVDQGWKHWKUHDWRIZDU&KLYHVDVVHUWVWKDWKLVURGHQWFRQVWLWXHQF\KDVDELGHGE\
WKH5DW+XPDQ7UHDW\+HGRHVVXJJHVWKRZHYHUWKDWDQXPEHURIODUJHDOLHQUDWVKDYHEHHQVSRWWHGLQWKH&DW
V
&UDGOHDQDEDQGRQHGVHFWLRQRIWKHVHZHUV\VWHP
,WLVLQWKLVDUHDWKDWWKH3&VILQGWKHERXQGKHURHV+LVYLQKLVDUP\DQG(UDVWXV,WDOVRKHUHWKDWWKHSDUW\PXVWIUHH
)DIKUGDQG*UD\0RXVHUDQGGHIXVHWKHSORWRI+LVYLQWREULQJ/DQNKPDUXQGHUWKHKHHORIWKH,OWKPDULDQ5DW*RG

7KH&LW\&RXQFLO

6HH0DS,,DUHD&
5HDGWKHIROORZLQJWRWKHSOD\HUV
,QWKH5DLQERZ3DODFHRI7KH2YHUORUG5DGRPL[.LVWRPHUFHVWKH&LW\&RXQFLOPHHWVWRGHOLEHUDWHRQWKHEXVLQHVV
RIJXLGLQJWKHDIIDLUVRI/DQNKPDU7KHFRXQFLOURRPLVILOOHGZLWKUHSUHVHQWDWLYHVRIDOOWKHLPSRUWDQWIDFWLRQVRI
WKHFLW\$VRQHGLVFXVVLRQUHJDUGLQJWDULIIVHQGVDQHZRQHFRQFHUQLQJWHUURULVWDFWLYLW\EHJLQV
,W KDV FRPH WR P\ DWWHQWLRQ LQWRQHV )LUVW 6SHDNHU RI WKH &RXQFLO *DEHO 5DWFKHWW WKDW WKHUH LV D JURXS RI
VXEYHUVLYHVWKDWLVDWWHPSWLQJWRXQGHUPLQHWKHHFRQRPLFVWDELOLW\RI/DQNKPDUE\DWWDFNLQJDQGFDUWLQJDZD\RXU
SUHFLRXVJUDLQVWRUHV
7KH OHDGLQJJUDLQ PHUFKDQWV PXUPXU DPRQJ WKHPVHOYHV &RXQFLORUV UHOXFWDQWO\DZDLWD YHUERVHVSHHFKIURPWKH
LQIDPRXVO\ORQJZLQGHGILUVWVSHDNHU
%XWWKHHFRQRPLFVWDELOLW\RIRXUJUHDWFLW\FDQQRWEHMHRSDUGL]HGKHFRQWLQXHV:HDUHDIUHHSHRSOHDQGWKHVH
DFWVRIWHUURULVPFDQQRWEHWROHUDWHG,KDYHSUHSDUHGDFDUHIXOO\UHVHDUFKHGUHSRUWDQGWKLVUHSRUWLQGLFDWHVWKDWWKHVH
DFWVZHUHFRPPLWWHGE\UDWV
,GRQ
WKRZHYHUZDQWWRMXPSWRDQ\FRQFOXVLRQV6LQFHWKHVLJQLQJRIWKH5DW+XPDQ7UHDW\DWWKHHQGRIWKHODVW
ZDUWKHJRYHUQPHQWRI/DQNKPDU%HORZKDVEHHQIULHQGO\DQG,FRQVLGHUWKHUDWVWREHRXUIULHQGV
5HVWOHVVOLVWHQHUVEHJLQWRJUXPEOH*HWRQZLWKLWDQGHQRXJK\RXROGZLQGEDJ
6RZKDW,DPVD\LQJWKHVSHDNHUKROOHUVRYHUWKHKHFNOHUVLVWKDWZHDUHXQVXUHZKDWJURXSLVUHVSRQVLEOHIRU
WKHVHDFWVDQGZHGRQRWZDQWWRXQQHFHVVDULO\FUHDWHDVLWXDWLRQRIWHQVLRQZLWKWKHUDWJRYHUQPHQW
,KHUHE\SURSRVHWKDWRXUEHQHYROHQWPRQDUFKDQGXQGLVSXWHGFKDPSLRQRIMXVWLFHRXUHVWHHPHGUXOHURXULQYLQ
FLEOHRYHUORUGPLJKWFDOOXSRQRXUUHYHUHGFKDPSLRQV)DIKUGDQGWKH*UD\0RXVHUWRGLVFRYHUZKRWKHVHWHUURULVWV
DUHDQGWRGULYHWKHPEDFNIURPZKHUHWKH\FDPH
$FKRUXVRIVXSSRUWLYHH[FODPDWLRQV+HUHKHUHDUHKHDUGIURPWKHFRXQFLORUVWRLQGLFDWHWKHLUJUDWHIXOQHVVWKDW
WKHVSHHFKKDVILQDOO\FRPHWRDQHQG7KHRYHUORUGORRNLQJUDWKHUJULPWKHQEHJLQV
$OWKRXJK )DIKUG DQG WKH *UD\ 0RXVHU DUH WKH XQGLVSXWHG FKDPSLRQV RI /DQNKPDU DQG WKRXJK WKH\ DUH LQ P\
VHUYLFHIRUDVORQJDV,VKR XOGGHVLUH,
PDIUDLGZH
OOKDYHWRGRZLWKRXWWKHPIRUWKHSUHVHQW&HUWDLQRIWKHSDLU
V
ZLGHO\UHFRJQL]DEOHSHUVRQDOHIIHFWVDUHVDLGWREHIRUVDOHRQWKHEODFNPDU NHW)URPWKLV,PDNHWKHLQIHUHQFHWKDW
WKH WZDLQ KDYH GLVDSSHDUHG XQGHU XQIRUWXQDWH FLUFXPVWDQFHV ,QGHHG WKH\ PD\ HYHQ EH DW WKLV YHU\ PRPHQW
GHFHDVHG
)URPWKHIORRURIWKH&LW\&RXQFLOFRPHVDWUHPHQGRXVXSURDU/DQNKPDUZLWKRXW)DIKUGDQGWKH*UD\0RXVHU
ZRXOG EH OLNH WKH 6WUHHW RI WKH *RGV ZLWKRXW WHPSOHV (YHU\RQH VXG GHQO\ IRUJHWV DERXW WHUURULVW SORWV DQG WKHLU
DWWHQWLRQLVWXUQHGWRWKHPDWWHURI)DIKUG
VDQG*UD\0RXVHU
VGLVDSSHDU DQFH
, EHOLHYH WKDW D WHDP RI VSHFLDOLVWV VKRXOG EH RUJDQL]HG WR FRQGXFW DQ LPPHGLDWH LQYHVWLJDWLRQ WKH RYHUORUG
FRQWLQXHV $W WKH VDPH WLPH WK HVH LQYHVWLJDWRUV FDQ ORRN LQWR WKH JUDLQ VWRUDJH LQFLGHQFHV WKDW )LUVW 6SHDNHU
5DWFKHWW KDV VSRNHQ DERXW DW VRPH OHQJWK DQG ZLWK PXFK YHUELDJH , ZLOO GHGLFDWH P\ FRQVLGHUDEOH SHUVRQDO
UHVRXUFHVWRWKLVPDWWHUZLWKRXWGHOD\7KLVPHHWLQJLVKHUHE\DGMRXUQ HG
7KHRYHUORUGFRQVXOWVZLWKKLVQXPHURXVDGYLVRUVLQRUGHUWRDVVHP EOHDWHDPZLWKWKHQHFHVVDU\VNLOOVWRSXUVXHWKH
LQYHVWLJDWLRQPRVWHIIHF WLYHO\&LWL]HQVDQGIRUHLJQHUVIURPDOOZDONVRIOLIHDUHFRQVLGHUHG$WODVWWKHPHPEHUVRI
WKHWHDPDUHV HOHFWHGDQGVXPPRQHGWRDQDXGLHQFHZLWKWKHRYHUORUG DVXPPRQVWKDWQROR\DORU/DQNKPDUWZRXOG
UHIXVH

(QFRXQWHU.H\

2QFHWKH3&VKDYHUHFHLYHGWKHLUEULHILQJIURP'XFKLQWKHRYHUORUG
VFKDPEHUODLQWKH\PXVWVWDUWXQUDYHOLQJWKH
P\VWHU\RI)DIKUG
VDQG*UH\0RXVHU
VGLVDSSHDUDQFH

7KH,QYHVWLJDWLRQ

(QFRXQWHUVKRXOGEH WKH ILUVWHYHQWSOD\HG$IWHUWKH SDUW\PHHWV WKH RYHUORUGWKH '0 FDQUXQWKH VXEVHTXHQW

HYHQWVLQDQ\RUGHUWKDWVHHPVPRVWDSSURSULDWH7KHVHTXHQFHPD\YDU\GHSHQGLQJRQWKHDFWLRQVRIWKH3&V

 $XGLHQFHZLWKWKHRYHUORUG6HH0DS,,DUHD0

(DFKRI\RXUHFHLYHVDVXPPRQVWRDQDXGLHQFHZLWKWKHRYHUORUG7KHVXP PRQVLVDFFRPSDQLHGE\DSODWRRQRI
SDODFHJXDUGV7KHJXDUGVDUHSROLWHEXWILUP&RPHQRZ:HZLOOHVFRUW\RX WKH\VD\<RXPD\H[SUHVV\RXU
JUDWLWXGHIRUWKLVKRQRUWRWKHRYHUORUGKLPVHOI
<RXDUHLQGLYLGXDOO\HVFRUWHGWRWKHSDODFHZKHUH\RXPHHWIRUWKHILUVWWLPHLQDVPDOOFRQIHUHQFHFKDPEHU*LYLQJ
DVVXUDQFHVWKDWVRPHRQHZLOOVSHDNZLWK\RXVKRUWO\ WKHJXDUGVZLWK GUDZORFNLQJWKHGRRUVEHKLQGWKHP
*LYHWKHSOD\HUVDIHZPLQXWHVWRVSHDNLQFKDUDFWHUWRRQHDQRWKHU(QFRXUDJHQHZ3&VWRGHVFULEHDWOHDVWWKHLU
SK\VLFDO DSSHDUDQFH DQG WRUHYHDODW OHDVWVRPH DVSHFWVRIWKHLUSHUVRQDOLW\1HZ DQGHVWDEOLVKHG FKDUDFWHUV PD\
ZLVK WRVKDUHUXPRUVDQGVSHFXODWHRQWKHUHDVRQVIRUWKHLUVXPPRQV$IWHUILYHWRPLQXWHVRIJDPHWLPHWKH
RYHUORUGKLVFKDPEHUODLQDQGDVPDOOHVFRUWRISDODFHJXDUGVHQWHUWKHURRP
$VPDOOPDQLQH[FHHGLQJO\ILQHUREHVF RQILGHQWO\HQWHUVWKHURRPFUDGOLQJDZHOO JURRPHGFDW,QKLVZDNHDUHD
QXPEHURIJXDUGVDWDOOHOHJDQWO\GUHVVHGPDQDQGD\RXQJVHUYDQWZKRFDUULHVDODUJHOHDWKHUVDWFKHO
7KHPDQZLWKWKHFDWVWULNHVDSOHDV DQWEXWVOLJKWO\ERUHGSRVH
+RZGR\RXGR"KHDVNV
(DFKSOD\HUVKRXOGWHOOKRZKLVFKDUDFWHUJUHHWVWKHRYHUORUG%RZLQJDQGVFUDSLQJZLWKSROLWHQHVVDUURJDQFHRU
GLJQLILHGVLOHQFH7KHUHVSRQVHVWKHPVHOYHVDUHQRWLPSRUWDQWEXWWKLVKHOSVWRJHWWKHSOD\HUVLQWRWKHVHWWLQJ
7KHRYHUORUGJUDFLRXVO\DFNQRZOHGJHV\RXUJUHHWLQJVZLWKDQRGVPLOHVDWULIOHLQVLQFHUHO\DQGKDQGVKLVFDWWRWKH
FKDPEHUODLQ7KHFKDPEHUODLQGLVGDLQ IXOO\JLYHVWKHFDWWRKLVVHUYDQWDVWKHRYHUORUGDGGUHVVHV\RX
:HOFRPHODGLHVDQGJHQWOHPHQ7KDQN\RX IRUDQVZHULQJP\VXPPRQV,KDYHDQLPSRUWDQWPDWWHU,ZLVKORRNHG
LQWRDQG,
PWROGWKDW\RXIRONVZLOOKDQGOHLWLQWHOOLJHQWO\DQGGLV FUHHWO\1HHGOHVVWRVD\LI\RXDUHVXF FHVVIXOLQ
WKLVYHQWXUH,ZLOOEHPRVWJUDWHIXODQGJHQHURXVLQP\UHZDUGV 
7KHRYHUORUGSDXVHVKHUHZDLWLQJIRUDUHDFWLRQIURPWKHSDUW\+HWKHQFRQWLQXHV
1RZSOHDVHJLYH\RXUDWWHQWLRQWRP\FKDPEHUODLQ/RUG'XFKLQ,ORRNIRU ZDUGWR\RXUUHSRUWV7KHRYHUORUG
WXUQVWRZDUGKLVFKDPEHUODLQ/RUG'XFKLQ"7DNLQJWKH FDWIURPWKHVHUYDQWWKHRYHUORUGDEUXSWO\PDUFKHVIURP
WKHURRP$OOEXWWZRRIWKHJXDUGHVFRUWVOHDYHZLWKKLP/RUG'XFKLQVWHSVIRU ZDUG,
OOFRPHULJKWWRWKHSRLQW
KHVD\V)DIKUGDQGWKH*UD\0RXVHUDUHPLVV LQJ,WLV\RXMREWRILQGWKHP
,IGXULQJWKHFRXUVHRI\RXULQYHVWL JDWLRQ\RXFRPHDFURVVLQIRUPDWLRQFRQFHUQLQJURGHQWVYDQGDOLVPDQGWKHIWLQ
WKH5LYHU'LVWULFWRUWKHDFWLYL WLHVRIVXEYHUVLYHVSOHDVHUHSRUWWRPHDWRQFH <RXDUHWREHJLYHQZLGHGLVFUHWLRQ
LQSXUVXLQJWKLVLQY HVWLJDWLRQDQG\RXDUHFRPSOHWHO\UHVSRQVLEOHIRU\RXURZQDFWLRQV:HZLOOGHQ\DQ\FRQQHF WLRQ
EHWZHHQ\RXUVHOYHVDQGWKHRYHU ORUG:HZLOOKRZHYHUSURYLGHIRUFHUWDLQH[SHQVHVEXWRQO\ZLWKP\DSSURYDO,
KDYHSUHSDUHGDEULHIVXPPDU\RIZKDWZHNQR Z+LVVHUYDQWSURGXFHVSDSHUVIURPWKHVDWFKHODQGKDQGVWKHPWR
WKHFKDPEHUODLQ)DIKUGDQG*UD\0RXVHUWKHFKDPEHUODLQFRQWLQXHVKDYHEHHQPLVVLQJPRUHWKDQWKULFHD
IRUWQLJKW $ VPDOO DSDUWPHQW UHQWHG E\ WKH WZR KDVEHHQXQYLVLWHGIRUDWO HDVWDPRQWK7KH SUHVHQFHRI WKHLU
SDFNVDQGWUDYHOLQJJHDUVXJJHVWWKDWWKHWZRGLGQRWDQWLFLSDWHDORQJMRXUQH\7KHLUKRUVHVDUHEHLQJFDUHGIRUDW
DQHDUE\VWDEOH
$VXUYH\RIWKHLUIDYRULWHKDXQWVLQGLFDWHVWKDWQHLWKHUKDYHEHHQVHHQLQZHHNV 7KH\ZHUHODVWGHILQLWHO\UHSRUWHG
DWWKH*ROGHQ/DPSUH\VL[ZHHNVDJR$QXQFRQILUPHGUXPRUVXJJHVWVWKDWWKHSHUVRQDOZHDSRQVRIWKHWZR
KHURHVKDYHEHHQRIIHUHGRQWKHEODFNPDUNHW
7KDWLVDOOZHNQRZ:HH[SHFW\RXWRSXUVXHWKHODVWFOXHZKLF KVHHPVWKHPRVWSURPLVLQJDQGZKLFKZHDWWKH
SDODFHDUHOHDVWZHOOVXLWHGWRIRO ORZXS+DYLQJUHDGWKHFRQWHQWVRIWKHSDSHUWKHFKDPEHUODLQKDQGVLWWRKLV
VHUYDQWZKRSXWVLWEDFNLQWKHVDWFKHO7KHFKDPEHUODLQDJDLQDGGUHVVHVWKHSDUW\1RZFRQ FHUQLQJWKHURGHQWV
DQGYDQGDOLVP)DIKUGDQG*UD\0RXVHUDUHZDQWHGE\WKHRYHUORUGWRORRNLQWRWKHVHPDWWHUV:KLOH\RXVHDUFKIRU
WKHWZRPHQNHHS\RXUHDUVRSHQIRUDQ\ WKLQJWKDWPD\EHLPSRUWDQW5HPHPEHUWKDWGLVFUHWLRQLVFULWL FDO:RUGRI
WKHGLVDSSHDUDQFHFDQQRWEHNQRZQDWODUJH)DIKUGDQG*UD\0RXVHUDUHWZRRIWKHFLW\
VPRVWFHOH EUDWHG
SURWHFWRUVDQGWKHLUGLVDSSHDU DQFHPD\FDXVHVHULRXVGLVWUHVVWRDOO/DQNKPDUV$QGQHLWKHUWKHFKDPEHUODLQ
VD\VHPSKDWLFDOO\8QGHUDQ\FLUFXP VWDQFHVDUHUXPRUVRIDQRWKHUUDWUHEHOOLRQWREHVWLUUHGXS:HDOOUHPHPEHU
ZHOOWKH5DW3ODJXHDQGWKHSULFHWKHFLW\SDLG5HPHPEHUWKDWZHKDYHDWUHDW\ZLWKWKHUDWVDQGWKLVPDWWHUPXVW
EHKDQGOHGZLWKWKHXWPRVWGHOLFDF\%XWLIWKHUHLVDQ\LQGL FDWLRQWKDWWKHUDWVDUHSODQQLQJDQRWKHUUHEHOOLRQ\RX

PXVWQRWLI\PHDWRQFH$QRWKHUUHEHOOLRQPXVWEHVWRSSHGDWDOOFRVWV 1RZLIWKHUHDUHQRTXHVWLRQV,PXVWEH
DERXWP\EXVLQHVV,I\RXKDYHDQ\ WKLQJLPSRUWDQWWRWHOOPHDGLVFUHWHZRUGWRDSDOD FHJXDUGZLOOEULQJ\RXWRP\
DWWHQWLRQ,ORRNIRUZDUGWR\RXUUHSRUWV*RRGE\HJHQWOHPHQDQGJRRGOXFN
'XFKLQUHIXVHVDOOUHTXHVWVIRUHTXLSPHQWDQGVXSSOLHV1RWKLQJSHUVRQDOKHVD\VZHMXVWFDQ
WDIIRUGWREH
LGHQWLILHGZLWK\RX+HKLQWVWKDWVRPHPRQH\PD\EHDYDLODEOHIRUEULEHVDQGRWKHUH[SHQVHVEXWWKDWLQJHQHUDO
WKH3&VDUHRQWKHLURZQ'XFKLQWKHQOHDYHVDQGDWURRSRIJXDUGVHVFRUWVWKH3&VIURPWKHSDODFH
 5XPRUV,QWKH6WUHHWV

:KLOHWKH3&VDUHRQWKHLUZD\WRILQGFOXHVOHWWKHPKHDUUXPRUV7KHUXPRUVVKRXOGGHYHORSDVHQVHRIP\VWHU\
DQGVXVSHQVH
7KH '0 VKRXOG XVHKLVGLVFUHWLRQLQGHFLGLQJZKLFK3&VKRXOGKHDUZKLFKUXPRU,ISRVVLEOHILWWKHUXPRUWRD
FKDUDFWHUOLNHO\WRKDYHLQWHUDFWLRQZLWKWKHUXPRU
VVRXUFH)RUH[DPSOHDFLW\JXDUGVPDQRUPHUFKDQWPLJKWNQRZ
GHWDLOV RI WKH GHSUHGDWLRQV RI WKH JUDLQ VWRUDJH EXLOGLQJV ,I D 3& LV RQH RI WKRVH RFFXSDWLRQV RU KDV H[WHQGHG
LQWHUDFWLRQZLWKWKHPWKHQKHVKRXOGKHDUWKHUXPRU2WKHUZLVHDVVXPHWKHUXPRUFDPHIURPLGOHWDYHUQRUVWUHHW
WDON
:KDWIROORZVLVDOLVWRIUXPRUV$WWKHHQGRIHDFKLVDSDUHQWKHWLFDOUHPDUNLQGLFDWLQJLIWKHVWDWHPHQWLVWUXHRU
IDOVH2EYLRXVO\WKHSDUHQWKHWLFDOLQIRUPDWLRQLVUHVHUYHGIRUWKH'0RQO\7KH3&VDWWKHLURZQGLVFUHWLRQPD\RU
PD\QRWVKDUHWKHLQIRUPDWLRQWKH\KDYHZLWKRWKHUV
5XPRU$ 7KH*UD\0RXVHUUHFHQWO\IDLOHGWRNHHSDQDSSRLQWPHQWWRGXHOIRUWKHKRQRURIRQHRIKLVSDUDPRXUV
6KHKDVORXGO\SXEOLFO\DQGFRORUIXOO\GHQRXQFHGKLPIRUKLVIDLWKOHVVQHVVDQGFRZDUGLFH7UXH

5XPRU% $FROOHFWRUERDVWVWKDWKHLVQHJRWLDWLQJZLWK2JRWKH%OLQGIRUDQXPEHURISHUVRQDOLWHPVVXSSRVHGO\
RZQHGE\)DIKUGDQGWKH*UD\0RXVHU+HUHIXVHGWRVD\ZKLFKLWHPVRUIRUZKDWSULFHEXWKHKLQWHGWKDWWKHVXPV
ZHUHVWDJJHULQJ7UXH
5XPRU&$QXPEHURIJUDLQVWRUDJHKRXVHVKDYHEHHQGDPDJHGE\URGHQWSHVWV&LW\LQVSHFWRUVKDYHEODPHGWKH
LQFLGHQWVRQSRRUPDQDJHPHQWE\WKHLQGHSHQGHQWJUDQDU\RZQHUV7UXH
5XPRU'$KXJHGHDGUDWZHDULQJDPHGDOOLRQZDVGLVFRYHUHGLQ WKH5LYHU'LVWULFWDQGVHQWWRWKH*UHDW/LEUDU\
IRU LGHQWLIFDWLRQ 7KH SRUWUDLW RQ WKH PHGDOOLRQ UHVHPEOHV WKH 5DW *RG RI OOWKPDL EXW WKH LQVFULSWLRQ LV
XQLGHQWLILDEOH3ULHVWVDWWKH7HPSOHRIWKH5DW*RGUHIXVHGWRFRRSHUDWHLQLGHQWLI\LQJWKHREMHFW7KHUDWLWVHOILVRI
DQHZDQGXQXVXDOO\ODUJHVSHFLHV7UXH

5XPRU( 7KH QRUPDOO\VHFUHWUHOLJLRQRIWKH 5DW*RG RIWKPDULVH[SHULHQFLQJDVXUJH LQSRSXODULW\DPRQJ

FLWL]HQVSDUWLFXODUO\ WKH SRRU DQG XQGHUSULYLOHJHG %UHDG DQG FKHHVH DUH EHLQJ PDGH DYDLODEOH WR WKH SRRU LQ
XQSUHFHGHQWHGJHQHURVLW\DQGWKHIDLWKIXOKDUDQJXHSDVVHUVE\RQWKH6WUHHWRIWKH*RGVZLWKSDUDEOHVRIWKH5DW
*RG
VPXQLILFHQFH7UXH

5XPRU) 7KH JXLOGPDVWHU RIWKH 7KLHYHV*XLOG KDV EHHQ ERDVWLQJSULYDWHO\RIKDYLQJULG/DQNKPDURILWVWZR

PRVW SURPLQHQWKHURHVDQGRIKDYLQJPDGHKLPVHOIULFK LQWKHEDUJDLQ)DOVH7KHJXLOGPDVWHUPD\KDYHEHHQ
ERDVWLQJEXWQRPHPEHURIWKH7KLHYHV*XLOGNQRZVDQ\WKLQJDERXWWKHIDWHRI)DIKUGDQG*UD\0RXVHU
5XPRU * $ JUD\EHDUGHG PDJH KDV EHHQ LQTXLULQJ LQ WKH WDYHUQV RI /DQNKPDU DV WR WKH ZKHUHDERXWV RI *UD\
0RXVHU7KHPDJHKDVEHHQLQVLVWLQJWKDWKHEHSDLGLPPHGLDWHO\IRUVHUYLFHVUHQGHUHGWKHKHUR7UXH
5XPRU+ 4XDWFKWKH5DFNHWHHUKDVEHHQTXLHWO\DVVHPEOLQJDVPDOODUP\RIEXOOLHVDQGWKXJV7KHSXUSRVHRIWKH
DUP\LVXQNQRZQEXWWKHSD\LVVDLGWREHJRRG7UXHEXWLUUHOHYDQWWRWKLVDGYHQWXUH
2JRWKH%OLQG

'XFKLQ WROG WKH 3&V WR LQYHVWLJDWH WKH UXPRU WKDW )DIKUG DQG *UH\ 0RXVHU
V ZHDSRQV DUH IRU VDOH RQ KW H EODFN
PDUNHW,IWKH3&ZKRKHDUGWKHUXPRUDERXW2JRWKH%OLQGVKDUHVLWZLWKWKHSDUW\WKH3&V

ZLOOSUREDEO\EHJLQWKHLQYHVWLJDWLRQWKHUH2WKHUZLVHWKH3&VPD\JRRQDV\VWHPDWLFWRXURI/DQNKPDU
VEODFN
PDUNHWYLVLWLQJYDULRXVWDYHUQVDQGHVWDEOLVKHGIHQFHVWRSLFNXSUXPRUVDERXWZKRLVVHOOLQJWKHLWHPV6RRQHURU
ODWHUWKH3&VVKRXOGEHGLUHFWHGWR2JR
VVKRS
1RWH)RULQIRUPDWLRQRQ2JRWKH%OLQGVHH7KH)HQFHVRI/DQNKPDUSDJHWKH6KRSRI2JRWKH%OLQGSDJH
WKH(\HVRI2JRSDJHDQG2JRWKH%OLQGRQSDJHRIWKH6RXUFHERRN

7KH6KRSRIWKH%OLQG
6HH0DS,,,DUHD
$Q\RQHLQWKHVKDG\XQGHUZRUOGRI/DQNKPDUNQRZVWKHORFDWLRQRI2JRWKH)HQFHQHDUWKHFRUQHURI6LOYHU6WUHHW
DQGWKH6WUHHWRIWKH*RGV0DUNHGRQO\ZLWKDVWRUHIURQWVLJQRIDQH\HZLWKRXWDSXSLOWKHVLWHDSSHDUVWREHD
UDWKHU UXQGRZQ FXULR VKRS VSHFLDOL]LQJ LQ UHOLJLRXV SDUDSKHUQDOLD $ GXVW\ DQG XQLPSUHVVLYH DUUD\ RI VWUDQJH
REMHFWVLVVHFXUHGEHKLQGDWLQ\ZRYHQZLUHVFUHHQQH[WWRWKH GRRU
6LOYHU6WUHHWEHWZHHQ6WUHHWRIWKH*RGVDQG6WUHHWRIWKH7KLQNHUVLVDFRPPRQKDXQWIRUURXJKFXVWRPHUVRIWKH
/DQNKPDUWXQGHUZRUOG$WDQ\KRXURIWKHGD\WKHUHDUHXVXDOO\DIHZVXUO\WRXJKVERDVWLQJRIWKHLUODWHVWWHDWVRI
EUXWDOLW\DQGVLOHQWVLQLVWHUVHFRQGVWRU\PHQOHDQLQJDJDLQVWWKHZDOOVDQGFOHDQLQJWKHLUQDLOVZLWKORQJZLFNHG
GLUNV2IWHQWKHVHORLWHUHUVZLOOKDYHVRPHWKLQJWRVD\WRWKH3&V
$NQRFNRQ2JR
VGRRUZLOOUHFHLYHDVRIWIHPLQLQHYRLFH<HV"0D\,KHOS\RX"LWDVNV2QFHWKH3&VKDYHVWDWHG
WKHLUEXVLQHVVRUVRPHSODXVLEOHFRYHUVWRU\WKHGRRURSHQVUHYHDOLQJD SDOHKDLUHGGDUNVNLQQHGJLUOZLWKODUJH
H\HVDVPDOOFKLQDQGSRXW\OLSV+HUYRLFHLVVRIWDQGVLON\KHUPDQQHUVK\DQGGHPXUH
,FDQDUUDQJHDQLP PHGLDWHDXGLHQFHZLWK%OLQG2JRVKHVD\VEXWKHLQVLVWVWKDWQRPRUHWKDQWZRSHUVRQVPD\
HQWHUWKHVKRSDWDQ\RQHWLPH.QRZDOVRWKDW2JRFRQGXFWVKLVEXVL QHVVLQDEVROXWHGDUNQHVV$Q\DWWHPSWWREULQJ
OLJKWWRWKHDXGLHQFHZRXOGEHH[WUHPHO\XQZL VH
7KH3&VPXVWGHFLGHZKLFKRIWKHPDUHWRHQWHUWKHVKRSDQGZKLFKDUHWRUHPDLQRXWVLGH
7KH0HDQ6WUHHWVRI/DQNKPDU
7KRVHZKRUHPDLQRXWVLGHDUHJRLQJWREHWDXQWHGE\EHOOLJHUHQWVZKRKDQJRXWRQ6LOYHU6WUHHW7KH'0VKRXOG
GUDZRQKLVPHPRULHVRIMXQLRUKLJKVFKRROQDPHFDOOLQJ,ID3&LVWKHVFKRODUO\W\SHFRPPHQWVRQVLVV\FORWKLQJ
DQGEUDLQ\ZLPSVPD\EHDSSURSULDWH:KDWIROORZVDUHVDPSOHUHPDUNV
*HHZKDWDORYHO\SDLURIWLJKWV'LG\RXUPRWKHUJHWWKHPIRU\RXOLWWOHER\"
+H\ZKDWDELJVZRUG\RX
YHJRW*HH,
PVFDUHGRIVROGLHUVDUHQ
W\RX/XNH\"
+XK,JXHVV\RXJX\VDUHWKHVWXSLGRQHV:KDWVD
PDWWD
\RXUEXGGLHVZRQ
WOHW\RXJRLQVLGH
FDXVHWKH\ILJXUH
\RX
OOGULEEOHDOORYHU\RXUVHOYHV"
8JK)XUULQHUV.LQGDORRNOLNHGRQNH\VGRQ
WWKH\"ZKDW
VWKDWVPHOOLVWKDWWKHP"
7KLV IRROLVKQHVV KDV QRWKLQJ WR GR ZLWK WKH VFHQDULR EXW LW LV D JRRG FLW\ UROHSOD\LQJ VLWXDWLRQ DQG NHHSV WKH
FKDUDFWHUVZKRGRQRWYLVLWZLWK2JREXV\7KHURXJKJX\VDUHQRWHDJHUWRVWDUWDUHDOILJKW1RERG\ZDQWVWRZLQG
XSLQMDLORUZLWKDILQHIRUGLVWXUELQJWKHSHDFH7KH\MXVWZDQWWRPRXWKRIIDQGSHVWHUIRONV,IWKH3&VJHWUHDO
DJJUHVVLYHWKHWRXJKJX\VZLOOKHPDQGKDZ*RVKFDQ
W\RXWDNHDOLWWOHMRVKLQ":KDWWD\DD VRUHKHDG"
7KH\ZLOOWKHQZDQGHURIIRQSUHVVLQJHUUDQGVHOVHZKHUH
2JR
V+RXVH
7KH (\HV RI 2JR HVFRUWV WKH WZR FKRVHQ 3&V GRZQ D VHULHVRIVKRUWXQOLWFRUULGRUV(DFK SDVVDJHZD\HQGVLQ D
KHDY\GRRUZLWKWKLFNEODFNFXUWDLQVKDQJLQJEHIRUHLW$VWKH3&VILQDOO\HQWHUZKDWIHHOVOLNHDURRPWKH(\HVRI
2JRVLOHQWO\GLUHFWVHDFKRIWKHPWRDFKDLU7KH\ FDQQRWVHH QRUKHDUDQ\WKLQJEXWWKHVWURQJVPHOORIXQEDWKHG
KXPDQVWKHRGRURIVL[.OHVKLWHJXDUGVSHUYDGHVWKHDLU7KHVHVKRUWVZDUWK\JXDUGVDUHPXWHDQGPRWLRQOHVVDQG
WKHLUVHQVHVDUHVRDFXWHLQGDUNQHVVWKDWWKH\KDYHWKHHTXLYDOHQFHRILQIUDYLVLRQ7KH\DUHXWWHUO\OR\DOWRWKH(\HV
RI2JRDQGZLOOVOD\WKHYLVLWRUVDWKHUFRPPDQG2QFHLQWKHGDUNRIWKHURRPWKH(\HVRI2JRXVHVYHQWULORTXLVP
DQG SRVHV IRU WKH P\WKLFDO 2JR WKH %OLQG 7KURXJK WKLV UXVH VKH FUHDWHV D VHQVH RI P\VWHU\ DQG PHQDFH WKDW
XQQHUYHVKHUFXVWRPHUVPDNLQJKHUDQDFFRPSOLVKHGEDUJDLQHU(\HVKDVLQKHUSRVVHVVLRQWKHZHDSRQVRI)DIKUG
DQG *UD\ 0RXVHU 6KH ERXJKWWKH 6FDOSHO &DW
V &ODZ *UH\ZDQG DQG +HDUWVHHNHU IURP *XVWLOOR WKH WZDLQ
V
DEGXFWRU(\HVZLOORIIHUHDFKRIWKHZHDSRQVIRUJROGULONV
1RWH[SHFWHGWRSXUFKDVHWKHVHLWHPVWKH3&VZDQWWRNQRZZKRVROGWKHPWR2JR5HFRJQL]LQJKRZHYHUWKDWLWLV
EDGEXVLQHVVWREHWUD\DFXVWRPHU
VFRQILGHQFH2JRZLOOVHOOWKLVLQIRUPDWLRQRQO\IRUDKLJKSULFH(\HVZLOORIIHU
WKHLQIRUPDWLRQIRUJROGULONV,IWKH3&VKDJJOHVKHZLOOVHWWOHIRU

,IWKH3&VGRQRWKDYHHQRXJKPRQH\WKH\ PD\JREDFN WR'XFKLQZKRLVZLOOLQJWRSURYLGHXSWRULONVIRU

LQIRUPDWLRQ7KH3&VFDQPDNHVRPHPRQH\IRUWKHPVHOYHVLIWKH\ZHUHDEOHWRWDON2JRGRZQLQSULFH
'XFKLQZLOO QRWRIIHUWKH PRQH\WR SXUFKDVH WKH ZHDSRQVUHDVRQLQJWKDWRQFH WKHWZDLQDUHIRXQGWKH\ZLOOJHW
WKHLU ZHDSRQV EDFN LQ RQH ZD\ RU DQRWKHU %XW LI WKH 3&V DUH FKDUPLQJ FOHYHU RU LI WKH\ PDGH DQ H[FHSWLRQDO
LPSUHVVLRQRQWKHRYHUORUGRU'XFKLQWKHFKDPEHUODLQFDQEHSHUVXDGHGWREX\WKHZHDSRQV:KHQWKH3&VUHVFXH
)DIKUGDQGWKH*UH\ 0RXVHUWKHSDUW\FDQKDQGWKHGXRWKHLUZHDSRQVDQGHDUQWKHKHURHV
HYHUODVWLQJIULHQGVKLS
,IWKH3&VUDLVHWKHPRQH\WRSD\IRUWKHLQIRUPDWLRQ2JRJLYHVWKHPWKHIROORZLQJFOXHV
&OXH$7KHFOLHQWZKRVROGWKHZHDSRQVFDOOHGKLPVHOI*XVWLOOR6RLQWLPLGDWHGE\%OLQG2JRZDV*XVWLOORWKDW
KHIRUJRWWRJLYHDIDOVHQDPH
&OXH % 7KH FOLHQW KDG DQ RGG DFFHQW SUREDEO\ RI (DVWHUQ RULJLQ EXW VR GLVWRUWHG E\ D KLJKSLWFKHG VTXHDNLQJ
LQWRQDWLRQWKDW(\HVFRXOGQRWEHVXUH
&OXH& 5HHNLQJRIVKHOOILVKWKHFOLHQWZDVSUREDEO\DVDLORUGRFNZRUNHURUIRRGSUHSDUHU

&OXH'7KHSRWDWREDJWKDWWKHZHDSRQVZHUHZUDSSHGLQZDVPDUNHG*OHPHQH
2JRSRLQWVRXWWKDWWKLVLVWKH
QDPHRIDORZOLIHEDULQWKHZDUHKRXVHJUDLQHU\VHFWLRQRI/DQNKPDU

,IWKH3&VRXWVLGHGRQRWJHWLQWRWRRPXFKWURXEOHDQGLIWKH3&VLQVLGHGRQRWJHWSXVK\DQGVSRLOWKHGHDOZLWK
2JRWKHSDUW\VKRXOGEHDEOHWRSXUFKDVHWKHQHFHVVDU\LQIRUPDWLRQ,IWKH3&VIRXOXSLQVRPHZD\'XFKLQZLOO
REWDLQWKLVLQIRUPDWLRQDQG SDVVLWRQWRWKHSDUW\VRWKHDGYHQWXUHFDQFRQWLQXH
*XVWO,ORDOLDV2OG)HUUHW)DFH

7KH DEGXFWRUV RI )DIKUG DQG *UH\ 0RXVHU *XVWLOOR DQG KLV ZHUHUDW FRPSDQLRQV DUH WRXJK DQG SRVVHVVHG RI D
VKUHZGDQLPDOFXQQLQJ7KH\DUHKRZHYHULJQRUDQWFUXGHLQDUWLFXODWHDQGHDVLO\LPSUHVVHGE\GLVSOD\VRIZHDOWK
KLJKVRFLDOFODVVDQGIODVK\LQWHOOLJHQFH
7KHVHTXDOLWLHVPDNH*XVWLOORDQGKLVKHQFKPHQSHUIHFWIRLOVIRU+LVYLQ
VSODQV5HFUXLWHGLQOOWKPDUWKHZHUHUDWV
ZHUH WUDLQHGDQGRXWILWWHGE\+LVYLQWUDQVSRUWHGWR/DQNKPDU DQGHPSOR\HGLQ D SORWWRDEGXFWWKH KHURHVZKR
IRLOHG+LVYLQ
VILUVWDWWHPSWDWJDLQLQJFRQWURORI/DQNKPDULQWKH5DW:DUV
7KHDEGXFWLRQSODQZDVPDUYHORXVO\VLPSOH7UDLQHG,OWKPDULDQUDWVVOLSSHGWKURXJKWKHZDOOVRIWKHWZDLQ
VUHQWHG
WHQHPHQW DQG LQWURGXFHG D SRZHUIXO ORZDFWLQJ GUXJ LQWR WKH ZLQH :KHQ WKH GUXJ KDG WDNHQ HIIHFW WKH UDWV
UHSRUWHGWR*XVWXEDQGKLVUDWPHQZKRGHOLFDWHO\GURSSHGWKHKHURHVIURPWKHLUVHFRQGVWRU\URRPVWRDJDUEDJH
GXPSLQDQDGMRLQLQJDOOH\7KHQGLVJXLVHGDVWUDVKFDUWHUVWKHZHUHUDWVWRRNWKHKHURHVDZD\GHOLYHULQJWKHPWR
+LVYLQ
VUHVLGHQFH
+LVYLQ NQRZLQJ*XVWLOOR
VODFNRIZLWVWULFWO\IRUEDGHKLPWRVWHDODQ\WKLQJIURPKLVFDSWLYHV8QZLVHO\+LVYLQ
WUXVWHG*XVWXE
VIHDUWRHQVXUHWKHZHUHUDW
VREHGLHQFH%XWJUHHGZRQRXWRYHUIHDUDQG*XVWLOORVROGWKHZHDSRQVWR
2JR +DYLQJNHSWWKHVDOHRIWKHZHDSRQVDQGWKHQLNVDVHFUHWIURPKLVFRPSDQLRQV DQG+LVYLQ *XVWLOORLV
WHUULILHGKHZLOOEHIRXQGRXWDQGSXQLVKHG
*XVWLOORDSURILOH
$VPDOOZLU\PDQZLWKDSRLQWHGIDFH*XVWLOORLVNQRZQDV2OG)HUUHW)DFHE\KLVFRPSDQLRQVDQGHQHPLHVDOLNH
+LVORQJVWULQJ\KDLULVDOZD\VXQFOHDQKLVFRPSOH[LRQJUD\LVKDVWKRXJKKHKDGDYHU\EDGGLHWDQGKLVWHHWKDUH
ORQJDQGSRLQW\7KHUHVXOWLVDQDSSHDUDQFHDQGIUDJUDQFHWKDWPDNHV*XVWLOORDQXQSOHDVDQWFUHDWXUHWREHDURXQG
*XVWLOORDQGKLVFRPSDQLRQVDUHZHUHUDWV7KH\GRQRWKDYHWKHDELOLW\WRVKDSHFKDQJHDWZLOOQRUDUHZHDSRQV
QHFHVVDU\WRKLWWKHP7KHVHDELOLWLHVDUHUHVHUYHGWRWKHHOHFWDPRQJWKHZRUVKLSSHUVRIWKHOOWKPDULDQ5DW*RG
7KH\DUHKRZHYHUH[WUDRUGLQDULO\WRXJKIRUWKHLUVL]HDVLVUHIOHFWHGLQWKHLU+LW'LFH7KH\DOVRKDYHWKHDELOLW\WR
VXPPRQDQGFRQWUROGJLDQWUDWV
*OHPHQH
V%DUDQG&KDUFRDO*ULOO
6HH0DS,9DUHD*
)LQGLQJ*XVWLOORZLWKWKHFOXHVIURP2JRLVTXLWHHDV\*XVWLOORVSHQGVPRVWRIKLVZDNLQJKRXUVDW*OHPHQH
V2Q
DOPRVW DQ\ HYHQLQJ KH DQG KLV FRPSDWULRWV FDQ EH IRXQG WKHUH GULQNLQJ FKHDS EHHU DQG EHKDYLQJ OLNH MXYHQLOH
GHOLQTXHQWV

+DYLQJDFHUWDLQQRWRULHW\DW*OHPHQH
VWKH\DUHQRWSRSXODUEXWWKHLUEDLWLQJRIVWUDQJHUVDQGWKHVXEVHTXHQWEUDZOV
DUHDVRXUFHRIHQWHUWDLQPHQW7KH\DUHVRZHOONQRZQWKDWQRRQHERWKHUVEHLQJFDJH\DERXWLGHQWLI\LQJWKHP
$OWKRXJKWKH\DUHQRWZHOOOLNHGDFHUWDLQURPDQWLFDXUDVHHPVWRVXUURXQGWKHP3HRSOHDSSUHFLDWHDQGUHVSHFWWKH
OLWWOHJX\ZKREHDWVXSWKHELJJX\VRWKH&RQVWDEXODU\GRHVQRWDUUHVW*XVWLOORDQGKLVIROORZHUV
&RQIURQWLQJ*XVWLOOR
7KH3&V
REMHFWLYHVKRXOGEHWRJHWLQIRUPDWLRQIURP*XVWLOOR7KHUHDUHWZREDVLFDSSURDFKHVLQWLPLGDWH*XVWLOOR
LQWRWDONLQJRUDEGXFWKLPDQGGHOLYHUKLPWRWKHSDODFHZKHUH'XFKLQ
VSURIHVVLRQDOLQWHUURJDWRUVFDQZRUNRQKLP
7KH3&VFDQFRQIURQW*XVWLOORDW*OHPHQH
VRURQ WKHVWUHHWEHWZHHQ*OHPHQH
VDQG*XVWLOE
VWHQHPHQWIODW
,IWKH3&VWDNHRQ*XVWLOORDQGKLVUDWPHQLQWKHVWUHHWWKHUHZLOOEHOLWWOHQHHGIRUWDON7KH3&VPXVWZLQWKLVPHOHH
LQRUGHUWKDWWKH\FDQLQWHUURJDWH*XVWLOOR,IWKHSDUW\LVLQGDQJHURIORVLQJVRPHRI*XVWLOOR
VFRPSDQLRQVZLOO
LQH[SOLFDEO\DEDQGRQKLPDOORZLQJWKH3&
VYLFWRU\
,IWKH3&VFRQIURQW*XVWLOORLQWKHEDUWKLQJVZLOOEHVRPHZKDWPRUHSXEOLFDQG*XVWLOORDQGKLVUDWEXGGLHVZLOO
KDYH DQ RSSRUWXQLW\ WR WDON WRXJK WR WKH 3&V <HDK" :KR ZDQWV WR NQRZ" *
ZDQ EHDWLW MHUN +H\ *OHPHQH
ZKDWW\DGRLQ
OHWWLQ
MHUNVOLNHWKLVERWKHU\HUSD\LQ
FXVWRPHUV":KDWW\DNP
DWSXQN"<RXZDQWDSXQFKLQ\D
IDFHHK"
,IWKH3&VPHQWLRQWKHVDOHRIWKHZHDSRQVWR2JRKRZHYHU*XVWLOORLVLQWURXEOH+LVFRPSDQLRQVORRNDWKLPLQ
VXVSLFLRQ
+H\\RXWROGXV\RXGXPSHGWKRVHWKLQJVLQWKHULYHU"'LGQ
W\RXGROLNHWKH%RVVVDLG"'LG\RXVHOOWKDWMXQN"
6D\DUH\RXWU\LQ
WRGRXEOHFURVVXV"
,QWKLVFDVHWKH3&VPD\KDYHWRUHVFXH*XVWLOORIURPWKHIXU\RIKLVEHWUD\HGFROOHDJXHVDQGKHZLOOEHKDSS\WR
FRRSHUDWHZLWKWKHPLIWKH\ZLOOSURWHFWKLPIURP+LVYLQ
VZUDWK
,IWKH3&VREVHUYHWKHUDWPHQLQ*OHPHQH
VEXWQRPHOHHHQVXHVWKHSDUW\PD\WDLOWKHUDWPHQEDFNWRWKHLUWHQH
PHQW1RPDWWHUKRZFOHYHUWKH3&VDUHLQWU\LQJWRVWD\FRQFHDOHG*XVWLOOR
VIROORZHUVZLOOGLVFRYHUWKDWWKH\DUH
EHLQJWUDLOHG
7KHUDWPHQPDNHDUXQIRUWKHLUWHQHPHQWJUDEWKHLUVWXIIDQGKHDGIRUWKH0DUVK*DWH7KLVVKRXOGEHSOD\HGRXW
DV D FKDVH VFHQH WKURXJK WKH VWUHHWV RI /DQNKPDU FOLPD[HG E\ D PHOHH ZKHQ WKH 3&V FDWFK WKHP 7KH 3&V ZLOO
LQHYLWDEO\ FDWFK *XVWLOOR DQG KLV IROORZHUV EHFDXVH WKH\ DUH IRUHLJQHUV XQIDPLOLDU ZLWK /DQNKPDU
V ODE\ULQWKLQH
VWUHHWV7KHZHUHUDWVPLJKWHDVLO\PDNH DIDOVHWXUQLQWRDEOLQGDOOH\

*XVWLOOR6LQJV/LNH$&DQDU\
7RXJKDVKHLVRQFH*XVWLOOROHDUQVWKDWWKH3&VNQRZKHKDVVROG2JRWKHKHURHV
ZHDSRQVKHZLOOFRRSHUDWHIXOO\
)RU*XVWLOORWKHDOWHUQDWLYHLVIDFLQJ+LVYLQDQGWKHFRPSDQLRQVKHKDVGRXEOHFURVVHG
%XWLIWKH3&VGRQRWXVHWKLVIDFWWRWKHLUDGYDQWDJH*XVWLOORZLOOUHPDLQWUXHWRWKHFRGHRIKRQRUDQGQRWWHOOD
WKLQJ%HFDXVH*XVWLOORXQGHUVWDQGVWKDWYLROHQFHLVQRWLQWKH3&V
FKDUDFWHUHYHQWKHWKUHDWRIIRUFHZLOOQRWJHW
KLP WR WDON ,I WKH 3&V WXUQ KLP RYHU WR 'XFKLQ DVVXPH WKH FKDPEHUODLQ
V PRUH VRSKLVWLFDWHG LQWHUURJDWLRQ
WHFKQLTXHVJHWWKHLQIRUPDWLRQ,IWKH3&VNLOO*XVWLOORWKHLQIRUPDWLRQGLHVZLWKKLP
&OXH$ $IWHUGUXJJLQJWKHKHURHV*XVWLOORDQGKLVFRPSDQLRQVFDUWHGWKHPWR+LVYLQ
VFXUUHQWO\YDFDQWKRXVHLQ
WKH5LYHU'LVWULFWVHH0DS,9DUHD+LVYLQ
VRUGHUVZHUHWRVQHDNLQWKURXJKDQXQERDUGHGEDVHPHQWHQWUDQFH
DQGOHDYHWKHERXQGFDSWLYHVLQWKHFHOODU+HUHWKH3&VPD\SLFNXSWKHWUDLORIWKHPLVVLQJKHURHV
&OXH% 1RWVRPHWKLQJWKHZHUHUDWNQRZVEXWUDWKHUVRPHWKLQJKHKDVLQ*XVWLOE
VWHQHPHQWVHH0DS,9DUHD$
LVWKH*UD\0RXVHU
VFORDN,IWKH3&VQHJOHFWWRVHDUFKWKHDSDUWPHQW'XFKLQRUDFRQVWDEOHPD\VXJJHVWLW
,QWKHFORDNLVDQRWHWKDWWKH*UD\0RXVHUUHFHLYHGMXVWEHIRUHKHZDVDEGXFWHG7KHQRWHUHDGVDVIROORZV
5RGHQWLQIHVWDWLRQVFDQEHVRWURXEOHVRPHP\OLWWOHIULHQG1RRIIHQVHLQWHQGHGWR\RXRIFRXUVH,
YHWDNHQWKH
OLEHUW\RIGHOLYHULQJDSDFNDJHWRWKHUHOLDEOH ILQJHUVRIDQLPEOHIULHQGRI\RXUV,KRSHP\JLIWPD\EHRIDLGLQ
DGGUHVVLQJVXFKLQFRQYHQLHQFHV
$V
6

DOZD\V\RXUIULHQGDQGPHQWRU

5HOLDEOHILQJHUVRIDQLPEOHIULHQGRI\RXUVLVDUHIHUHQFHWR1DWWLF1LPEOHILQJHUVDWUXVWHGIULHQGRIWKH*UD\
0RXVHU7KHSDFNDJH6KHHOED6VHHSDJHLQWKH6RXUFHERRNJDYHWR1LPEOHILQJHUVFRQWDLQVERWWOHVRI
GLPLQXWLRQSRWLRQVZKLFKZLOOSHUPLWWKH3&VWRHQWHUWKHUDWVL]HGWXQQHOVRI/DQNKPDU%HORZ
1RWHV,IWKH3&VPLVVWKHUHIHUHQFHWR1DWWLF1LPEOHILQJHUVDFRQVWDEOHZLOOEULQJLWWR'XFKLQ
VDWWHQWLRQ
'HSHQGLQJRQWKHVL]HRIWKHSDUW\DQGWKHWLPHWKH'0LQWHQGVIRUWKHPWREHXQGHUJURXQGKHPD\ZLVKWRDOWHUWKH
QXPEHURISRWLRQERWWOHVLQWKHSDFNDJHRUWRH[WHQGWKHGXUDWLRQRIWKHLUHIIHFW
1DWWLF1LPEOHILQJHUV 6HH0DS;DUHD
1DWWLFLVDWKLQEDOGLQJPDQRIDYHUDJHKHLJKWZLWKEULJKWVSDUNOLQJH\HV2QHRIWKHILQHVWWDLORUVLQ/DQNKPDU
WKRXJKIDUIURPWKHZHDOWKLHVWRUPRVWSUHVWLJLRXVKHLVDOVRRQHRIWKHPRVWJHQHURXVKRQHVWDQGJHQWOHVRXOVLQ
WKH FLW\ +LV IULHQGVKLS ZLWK *UD\ 0RXVHU LV EDVHG RQ PXWXDO DGPLUDWLRQ 1LPEOHILQJHUV HQYLHV WKH 0RXVHU
V
DGYHQWXURXVOLIHZKLOHWKH0RXVHUDGPLUHV1LPEOHILQJHU
VVLPSOHJRRGQHVV
:KHQ WKH 3&V DUULYH DW 1LPEOHILQJHU
V VPDOO VKRS RQ 3ODJXH &RXUW QHDU WKH 6LOYHU (HO 1DWWLF ZLOO LQLWLDOO\ EH
VXVSLFLRXVDQGGLVWUXVWLQJ2QFHFRQYLQFHGKRZHYHUWKDWWKH3&VDUHJHQXLQHO\FRQFHUQHGDERXWWKHZHOIDUHRIWKH
*UD\0RXVHUDQG)DIKUG1LPEOHILQJHUVZLOODGPLWWREHLQJZRUULHGEHFDXVHRIWKH0RXVHU
VORQJDEVHQFH
:KHQDVNHGDERXWWKHSDFNDJHWKDWKDVEHHQOHIWIRUWKH*UD\0RXVHU1LPEOHILQJHUVZLOOLQLWLDOO\EHDSSUHKHQVLYH
DERXWJLYLQJLWWRWKHP7KHWDLORUPXVWILUVWEHFRQYLQFHGWKDWWKLVLVDGHVSHUDWHVLWXDWLRQDQGWKDWWKHKHURHVOLYHV
DUHDWVWDNH1DWWLFKDVYHU\GHILQLWHSULQFLSOHVDERXWVXUUHQGHULQJWKH0RXVHU
VSULYDWHSURSHUW\WRVWUDQJHUVEXWKH
LVDOVRFDSDEOHRIEHQGLQJKLVSULQFLSOHVZKHQWKHQHFHVVLW\LVREYLRXV
,QVLGHWKHSDFNDJHLVDQRWHIURP6KHHOEDDQG WKHERWWOHVRISRWLRQ7KHQRWHUHDGVDVIROORZV
, NQRZ \RX DUH IDPLOLDU ZLWK WKHVH UHGXFLQJ SRWLRQV EXW , WKRXJKW ,
GMXVWJXDUGDJDLQVW\RXURFFDVLRQDOO\
IDXOW\PHPRU\
(DFKSRWLRQODVWVDSSUR[LPDWHO\DQKRXUDQGDKDOIDQGZLOOUHGXFH\RXUER G\WRDERXW RILWVQRUPDOKHLJKW
7KLVZLOOOHDYH\RXVWDUNQDNHGZLWKQRJHDURIVXLWDEOHGLPHQVLRQV<RXPD\HQOLVW\RXUIULHQG
VDLGWDLORULQJJDU 
PHQWVRIDQDSSURSULDWHVL]H2WKHUHTXLSPHQWPXVWEHLPSURYLVHGDVXVXDO
$OVRUHPHPEHUDIWHUUHGX FWLRQ\RXZLOOILQGDORYHO\SRRORISLQNLVKOLTXLG DURXQG\RX7KLVLVWKHRWKHURI
\RXUERG\:KHQWKHSRWLRQZHDUVRII \RXVKRXOGWREHVWDQGLQJLQWKLVSRRO,I \RXDUHQRWWKHFRQVHTXHQFHVDUH
VRPHZKDW XQSUHGLFWDEOH 6RPHWLPHV WKH QHFHVVDU\ RU JDQLF PDWWHU LV ERU URZHG IURP RWKHU OLYLQJ PDWWHU ,I WKH
QHDUHVWOLYLQJWKLQJKDSSHQVWREHDSDFNRIUDWV ZHOO\RXMXVWPLJKWHQGXSZLWKDYHU\VTXHDN\YRLFH6RZDWFK
\RXUVHOIDQGSOD\LWVDIH$V\RXZHOONQRZP\IULHQGPDJLFFDQEHYHU\WULFN\ 
%HVW5HJDUGV
6

+LVYLQ
V+RXVH
6HH0DS,9DUHD
*XVWLOOROHIWWKH WZRKHURHVWUXVVHG DQGGUXJJHGLQWKHFHOODURI+LVYLQ
VKRXVH7KH KRPH KDVEHHQYDFDQWVLQFH
+LVYLQ
VSDUWLQWKH5DW3ODJXHZDVGLVFRYHUHG+LVYLQH[LOHGKLPVHOIDQGKDVQRWEHHQKHDUGRIVLQFH
7KH3&VPD\HDVLO\HQWHUWKHFHOODURIWKHKRXVHLIWKH\IROORZ*XVWLOOR
VGLUHFWLRQV,QVLGHWKH\ZLOOILQGDFOHDUWUDLO
LQWKHGXVWOHDGLQJWRWKHSODFHZKHUH*XVWLOORGXPSHGWKHLQVHQVLEOHKHURHV%XWWKHSDLULVQRWWKHUH
$WILUVWJODQFHLWVHHPVSRVVLEOHWKDWVRPHRWKHUJURXSFDPHDQGWRRNWKHWZRFDSWLYHVRXWWKHZD\WKH\FDPHLQDORQJ
WKHSDWKLQWKHGXVWVFXIIHGE\WKHZHUHUDWV%XWLQJRRGOLJKWDQGXSRQFORVHULQVSHFWLRQDQRWKHUWUDLOLQWKHGXVWOHDGLQJ
WRZDUGDVWDFNRI EDUUHOVLQDFRUQHURIWKHFHOODUFDQEHVHHQ$YHU\IDLQWWUDLOWKHIRRWSULQWVZHUHDSSDUHQWO\PDGH
E\YHU\WKLQIHHWLQKXPDQVW\OHIRRWJHDU
,IWKHEDUUHOVDUHUHPRYHGWKHWUDLOFDQEHVHHQOHDGLQJLQWRDVLQJOHODUJHUDWKROHLQWKHFHOODUZDOO7KH3&VPD\
IROORZWKHWUDLOLIWKH\KDYHWKHGLPLQXWLRQSRWLRQVZLWKWKHP2WKHUZLVHWKH\PXVWVHFXUHWKHSRWLRQVIURP1DWWLF
1LPEOHILQJHUV

/DQNKPDU%HORZ(QFRXQWHU6HWWLQJ

%HQHDWKWKHEODFNDQGVPRN\VWUHHWVRI/DQNKPDUVWUHWFKHVDQHWZRUNRIPXGG\VHZHUWXQQHOV7KLVV\VWHP
RULJLQDOO\FRQVWUXFWHGWRFDUU\WKHZDVWHVRI/DQNKPDUWRWKH5LYHU+,DORUWKH*UHDW0DUVKLVDOVRKRPHWRWKH5DW
.LQJGRPRI/DQNKPDU%HORZ
:LWKDQDULVWRFUDF\SROLFHODERUHUVORZHUFODVVDQGDQDUP\/DQNKPDU%HORZLVDPLQLDWXUHUHIOHFWLRQRIWKH
KXPDQVRFLHW\DERYH
,QPLUURULQJ/DQNKPDUFLYLOL]DWLRQPDQ\RIWKHSHUYHUVLRQVDQGHPRWLRQVWKDWSHUYDGHKXPDQVRFLHW\DOVRH[LVWLQ
WKHUDWFRPPXQLW\'LVWUXVWIHDUJXLOWOXVWDQGWKHGHVLUHIRUSRZHUDPRQJWKHP:KHQWKH3&VHQWHUWKHWXQQHOV
EHORZWKHFLW\WKH\VKRXOGEHXQVXUHDVWRWKHUHFHSWLRQWKH\ZLOOUHFHLYH
/DQNKPDU%HORZLVVWLOODVRFLHW\VFDUUHGE\ZDU7KHWHUULEOHORVVVXIIHUHGE\WKHUDWVDWWKHKDQGVRIKXPDQVKDV
OHIWELWWHUIHHOLQJVEHWZHHQWKHJURXSV:LWKWKHFDUQDJHHWFKHGLQWKHPHPRU\RIPHPEHUVRIWKHROGHUJHQHUDWLRQ
RIUDWVDFHUWDLQGHIHUHQFHLVSDLGKXPDQVVRDVQRWWRSURYRNHDQRWKHUFRQIURQWDWLRQ0RVWROGHUJHQHUDWLRQUDWV
XQGHUQRUPDOFLUFXPVWDQFHVZLOOKHVLWDWHWRVSHDNWRKXPDQVDQGIHZZLOODWWDFNWKHPHYHQLIDKXPDQDSSHDUV
VHULRXVO\LQMXUHG
%XWPHPEHUVRIWKH\RXQJHUJHQHUDWLRQNQRZRQO\WKHKRUURUVWRULHV7KHLUOLPLWHGFRQWDFWZLWKKXPDQVKDVUHGXFHG
WKHLUIHDU$QGWKHORVVRIWKHLUSDUHQWVDQGJUDQGSDUHQWVKDVLQFUHDVHGWKHLUUDJH$OWKRXJKPDQ\XQGHUVWDQGWKDW
WKHUDWVZRXOGSUREDEO\ORVHDQRWKHUZDUVRPH\RXQJUDWVDUHHDJHUWRGHPRQVWUDWHWKHLUHPLQHQFH
6RGHVSLWHWKHH[LVWHQFHRIDWUHDW\DQGUHJDUGOHVVRIWKHGLSORPDWLFQLFHWLHVGLVWUXVWDQGKDWUHGH[LVWVRQERWKVLGHV
%DUULQJWKHIHDURIDQH[WHUQDOLQYDVLRQLWLVFOHDUWKDWHDFKVLGHYLHZVWKHRWKHUDVLWVPDMRUVHFXULW\WKUHDW

7KH6HZHU6\VWHP

,WVKRXOGEHXQGHUVWRRGWKDW/DQNKPDU%HORZLVHVVHQWLDOO\FRPSULVHGRIVHZHUWXQQHOV7KHWXQQHOVDUHGDUN
FODPP\DQGZHW$GUDIWSHUVLVWHQWO\JOLGHVWKURXJKWKHWXQQHOVDQGWKHVRXQGRIGULSSLQJZDWHUQHYHUVWRSV
7KHZDOOVDUHFRYHUHGZLWKDFHUWDLQVOLPHWKDWUHVHPEOHVDEODFNHQHGSLHFHRIVRDNHGFDUGERDUG7KLVVXEVWDQFHLV
VOLFNEXWLWFOLQJVWRZKDWHYHULWWRXFKHVKDUGHQLQJDIWHUVRPHWLPH2QWKHZKROHWKHVHZHUVDUHUDWKHU
XQFRPIRUWDEOH
7LQ\&RPEDW,QWKHWXQQHOV
%XWZLWKLWVPXOWLSOHXQGHUJURXQGOHYHOVDQGHQGOHVVPD]HRISDVVDJHZD\VWKLVVXEWHUUDQHDQFLW\LVSHUIHFWO\VXLWHG
WRGXQJHRQVW\OHDGYHQWXULQJ7KHIDQWDV\WKHPHRIWKHPDJLFDOO\GLPLQXWLYHDGYHQWXUHUSURYLGHVDSHUIHFWVHOHFWLRQ
RIJLDQWPRQVWHUVLQDSODXVLEOHVHWWLQJ
)RUDQRUPDOVL]HGKXPDQWKHUDWVRI/DQNKPDU%HORZDUHPHUHKDOI+'FUHDWXUHV%XWWRHQWHUWKLVUDWFLYLOL]DWLRQ
KXPDQVPXVW ILUVWLQJHVWDGLPLQXWLRQSRWLRQ:LWKWKHKXPDQ
VUHGXFWLRQLQVL]HWKHLQGLYLGXDOVWUHQJWKVDQG
DELOLWLHVRIWKHUDWVDQGWKHKXPDQVFDQEHEHWWHUFRPSDUHG,WLVDVLIWKHUDWVKDYHEHFRPHKXPDQVL]HG6HHWKH
0RQVWHU
V6WDWLVWLFVJLYHQRQWKH0DVWHU&KDUWRQWKHFRYHU
7KH'0VKRXOGQRWKRZHYHUPDNHDQ\DGMXVWPHQWVLQWKH3&VVWDWV7KHDGMXVWPHQWVKDYHDOUHDG\EHHQPDGH)RU
WKH'0
VHDV\UHIHUHQFHWKHFRPEDWUDWLQJVRIWKHUDWVQRWWKH3&VKDVEHHQDGMXVWHG7KH'0VKRXOGXVHWKH3&
V
$' '# VWDWVDQGDVVXPHWKDWWKHLURSSRQHQWV
FRPEDWUDWLQJVOLVWHGLQWKHPDVWHUFKDUWKDYHEHHQDGMXVWHG
SURSRUWLRQDWHO\)RUHPSKDVLVZHUHSHDW7KHFKDQJHLQUDWFRPEDWVWDWLVWLFVUHIOHFWVDPRUHHYHQIRRWLQJEHWZHHQ
UDWDQGKXPDQDIWHUWKHWDNLQJRIWKHGLPLQXWLRQSRWLRQ
$0DS.H\
7KHIROGXSPDSLQFOXGHGLQWKLVPRGXOHUHSUHVHQWVWKHVHZHUV\VWHPWKDWPDNHVXS/DQNKPDU%HORZ,QWHQGHGIRU
WKH'0
VXVHRQO\RQO\WKHPDMRUIHDWXUHVRIWKHQHWZRUNDUHGHSLFWHG7KH'0PD\H[SDQGWKHQHWZRUNRUDGG
HYHQVPDOOHUSLSHVDQGVHFUHWSDVVDJHVWRWKHVHZHUV\VWHP:KDWIROORZVLVDQHQODUJHGNH\WRWKHPDSGHVFULELQJ
LQVRPHGHWDLOWKHSK\VLFDOFKDUDFWHULVWLFVRIWKHFLW\
'UDLQDJH3LSHV(DFKRIWKHVHORFDWLRQVIHDWXUHDIRRWORQJVKDIWZLWKDVWUHHWOHYHOJULOORIKHDY\LURQDWWKHWRS
'RWVLQGLFDWHWKHVHSLSHVRQWKHPDS

1DUURZ6HZHU3LSHV 7KHVHSDVVDJHVPDNHXSWKHPDMRULW\RIWKHVHZHUVEHQHDWK/DQNKPDU(DFKLVDERXWIHHW
LQGLDPHWHUZLWKLQFKHVRIZDWHUVWDQGLQJRUPRYLQJVOXJJLVKO\DORQJWKHERWWRP7KLQOLQHVLQGLFDWHWKHVHOLQHV
RQWKHPDS

6HZHUIDOOV 5HVHPEOLQJZDWHUIDOOVWKHVOXJJLVKZDWHUWXPEOHVRYHUWKHVHFOLIIVDQGGURSVVL[IHHWWRDWXQQHOZKHUH
WKHZDWHUFRQWLQXHVWRIORZDVQRUPDO7KUHHVKRUWGDVKHVUXQQLQJSHUSHQGLFXODUWRWKHSLSHVLQGLFDWHVHZHUIDOOVRU

WKHPDS

0DLQ6HZHU7XQQHOV +XJH SDVVDJHVFROOHFWWKHZDWHUIURPPDQ\VPDOOHUWXQQHOVDQGFDUU\LWWRWKHULYHU(DFKRI

WKHVHWXQQHOVKDVDSSUR[LPDWHO\IHHWRIZDWHUPRYLQJWKURXJKLWVRPHZKDWPRUHUDSLGO\WKDQWKHZDWHUIORZVLQ
WKHVPDOOHUWXQQHOV7KLFNOLQHVLQGLFDWHWKHVHWXQQHOVRQWKHPDS
6LOYHU6SRXWV6HFXUHGZLWKKHDY\LURQJUDWHVWKHVHVSRXWVDOORZWKHFRQWHQWVRI/DQNKPDUVVHZHUV\VWHPWRIORZ
LQWRWKHDOUHDG\SROOXWHGZDWHUVRIWKH5LYHU+,DO
7KH &DWDFRPEV $ ZLQGLQJ VHULHV RI SDVVDJHV OLQHG ZLWK PXG DQG FORDNHG LQ DQ LQN\ GDUNQHVV WKDW NQRZV QR
GD\OLJKW XQGHDGDQGRWKHUORDWKVRPH EHLQJV OLYHKHUH 7KHFDWDFRPEVDUH ORFDWHGLQWKH ODUJHVKDGHG DUHDXQGHU
6LOYHU6WUHHW
7KH5DWV
/DQNKPDUWUDWVDUHQRWIRUWKHPRVWSDUWKXPDQPLQGHG7KH\GRQRWZHDUKXPDQFORWKHVDQGXVHRQO\FUXGH
ZHDSRQV7KHLUWHHWKKRZHYHUDUHYHU\VKDUS0DQ\FDQVSHDNDIHZSKUDVHVLQKXPDQVSHHFKDQGVRPHFDQ
VSHDNIDLUO\ZHOOWKRXJKZLWKDOLVSLQJVTXHDN\DFFHQW$PRQJWKHPVHOYHVWKH\VSHDNDQXPEHURIUDWWRQJXHVDQG
GLDOHFWVWKDWDUHQRWKLQJEXWVTXHDNVFKLWWHULQJVDQGZKLVWOHVWRWKHKXPDQHDU
/DQNKPDUWUDWVDUHUHODWLYHO\VPDOOLQVL]HFRPSDUDEOHZLWKWKHPRUHFRPPRQ/DQNKPDUWILHOGUDW%XWDVDUHVXOW
RILQWHUEUHHGLQJZLWKODUJHUZDWHUUDWVDQXPEHUKDYHJURZQTXLWHODUJH
7KHUDWVZLWKZKRPWKH3&VZLOOHQJDJHLQFRPEDWDUHPXFKELJJHU7KHVHZHUHUDWVDUHIRUHLJQWR/DQNKPDU%HORZ
DQGKDYHEHHQLPSRUWHGIURPWKHFLW\OOWKPDUIRUWKHSXUSRVHVRI+LVYLQ
VSORW
+LVYLQ
V3ORW
+LVYLQ
VPDVWHUSODQGHSHQGVRQILYHPDMRUHOHPHQWV

(OHPHQW+LVYLQKRSHVWREXLOGXSDVL]DEOHILIWKFROXPQDPRQJ/DQNKPDU
VZUHWFKHGORZHUFODVVHVWKURXJKWKH
SURVHO\WL]LQJHIIRUWVRIWKH5DW*RG
VSULHVWV

(OHPHQW+LVYLQSODQVWRWUDLQDQGRXWILWDQHOLWHDUP\RIOOWKPDULDQUDWVDSDUWLFXODUO\ODUJHDQGYLFLRXVEUHHGDQG
WKHQSURYLGHWKHPZLWKHQODUJLQJSRWLRQV7KHVHWURRSVZRXOGVXGGHQO\DSSHDUDWFULWLFDOSRLQWVWRQHXWUDOL]HNH\
GHIHQVLYHSRVLWLRQVLQ/DQNKPDU
(OHPHQW+LVYLQKRSHVWRUHNLQGOHWKHZDUEHWZHHQWKHUDWVRI/DQNKPDU%HORZDQGWKHKXPDQVFLWL]HQVRI
/DQNKPDU+HKDVSODQQHGDVHULHVRILQFLGHQWVWKDWZLOOJUDGXDOO\EXLOGWKHWHQVLRQVEHWZHHQWKHURGHQWDQGKXPDQ
SRSXODWLRQVLHWKHJUDLQHU\UDLGVXQWLOKRWKHDGVRQHLWKHUVLGHIDQWKHVSDUNVRIFRQIOLFWLQWRRSHQZDU
(OHPHQW+LVYLQKDVEHHQSURPLVHGWKHDLGRIWKH5DW*RGKLPVHOILQWKHSHUVRQRIKLVDYDWDU(UDVWXV
(OHPHQW +DYLQJEHHQSUHYLRXVO\GHIHDWHGE\)DIKUGDQG*UH\0RXVHU+LVYLQEHOLHYHVWKDWWKHVXFFHVVRIKLV
FXUUHQWFDPSDLJQKLQJHVRQQHXWUDOL]LQJ/DQNKPDUVPRVWGHGLFDWHGGHIHQGHUV'HWHUPLQHGQRWWRXQGHUHVWLPDWH
WKHLUWDOHQWVDQGLQIOXHQFH+LVYLQNHHSVWKHPVHFXUHO\LPSULVRQHGLQDFKDPEHUGHHSLQWKH&DW
V&UDGOH

,QWKH5DW7XQQHOV
:KHQWKH3&VUHGXFHWKHPVHOYHVZLWK6KHHOED
VSRWLRQVWKH\FDQHQWHUWKHUDWWXQQHOVDQGIROORZWKHWUDLORI)DIK
UG
VDQG*UD\0RXVHU
VDEGXFWRUV
7KH '0 VKRXOG WDNH FDUHIXO QRWH RI KRZ WKH 3&V RXWILW WKHPVHOYHV IRU WKH GHVFHQW LQWR /DQNKPDU %HORZ 7KH\
VKRXOGKDYHQRQHRIWKHLUQRUPDOVL]HGHTXLSPHQW$Q\JDUPHQWVRUJHDUWKH\WDNHZLOOKDYHWRKDYHEHHQIDVKLRQHG
RULPSURYLVHGEHIRUHKDQG1LPEOHILQJHUVZLOOFKHHUIXOO\PDNHWKHPGROOVL]HGFORWKHVWKRXJKKHPD\LQGXOJHKLV
VHQVHRIKXPRUDWWKHH[SHQVHRIWKH3&V
VHQVHRIGLJQLW\
2WKHULWHPVPD\EHHDVLO\LPSURYLVHGURSHIURPKHDY\FRDWWKUHDGWRUFKHVIURPZRRGVSOLQWHUVDQGWDUVZRUGVDQG
VSHDUVIURPQHHGOHVDQGDZOVDUPRUDQGVKLHOGVIURPOHDWKHUVFUDSVDQGVRRQ2WKHULWHPVOLNHFURVVERZVERZV
ODQWHUQVDQGVRRQZLOOEHWRRGLIILFXOWWRGHYLVHTXLFNO\7KH3&VPD\EXLOGOLWWOHFDUWVLQZKLFKWRFDUU\JHDURU
HYHQWU\WRXVHWUDLQHGUDWVDVEHDVWVRIEXUGHQ7KH'0VKRXOGLQGXOJHWKHLULPDJLQDWLRQVDQGLQJHQXLW\WKLVFDQ
EHRQHRIWKHPRVWHQWHUWDLQLQJSDUWVRIWKLVDGYHQWXUH

:KHQWKH3&VHQWHUWKHUDWWXQQHOLQ+LVYLQ
VFHOODUWKHWUDLOLVTXLWHFOHDU%XWDVWKHWUDLOGHVFHQGVGHHSHUEHQHDWK
WKHFLW\VPDOOHUWXQQHOVEHJLQWRDSSHDUIURPWKHVLGHV$WILUVWWKHIORRUVRIWKHVHWXQQHOVZLOOEHFRYHUHGZLWKGXVW
LQGLFDWLQJLQIUHTXHQWXVH%XWDIWHUDERXWILYHPLQXWHVRIWUDYHOWKH3&VZLOOQRWLFHPRUHDQGPRUHWUDIILFDORQJWKH
PDLQDQGVLGHWXQQHOV,WLVVWLOOFOHDUKRZHYHUWKDWWKHWZDLQ
VDEGXFWRUVKDYHFRQWLQXHGGRZQWKHPDLQFRUULGRU

(YHQWVLQ/DQNKPDU%HORZ

6HHIROGXS0DS6HZHUVRI/DQNKPDU%HORZ
3OD\WKHIROORZLQJHQFRXQWHUVLQQXPEHUHGRUGHU
7KHILUVWHQFRXQWHULVORFDWHGMXVWEHORZWKH7HPSOHRI$DUWKDUHD0DS,OO$QXPEHURIWXQQHOVOHDGGLUHFWO\
LQWRWKH PDLQVHZHUSLSHXQGHUWKHWHPSOHVHHIROGXSPDS
7KH$ODUP ,V6RXQGHG

$GLPOLJKWJORZVLQWKHGLVWDQFH$QRWKHUUDWWXQQHOWKLVRQHDSSDUHQWO\LOOXPLQDWHGFURVVHV\RXUSDVVDJHDWULJKW
DQJOHV6XGGHQO\DWLQ\FDUWZLWKDUDWLQKDUQHVVDFRQWUD SWLRQWKDWPRVWUHVHPEOHVDULFNVKDZSXOOVLQVLJKWDQG
VWRSVLQWKHMXQFWLRQRIWKHWZRWXQ QHOV7KHUDWWXUQVKLVKHDGDVLIFDVWLQJDERXWIRUDVFHQW$SSHDULQJWRUHFRJ QL]H
WKHRGRUWKHUDWORRNVLQ\RXUGLUHF WLRQJLYHVDOLWWOHIULJKWHQHGVTXHDN DQGGDVKHVRIIWRWKHOHIWDORQJWKHOLJKWHG
UDWFRUULGRUDEDQGRQLQJKLVOLW WOHFDUW)XUWKHUGRZQWKHFRUULGRUWRWKHOHIWDUHKHDUGDQXPEHURIRWKHUVTXHDNV
7KH 3&V KDYH EHHQ VLJKWHG DQG WKH DODUP KDV EHHQ VSUHDG $ VTXDG RI UDW PLOLWLD ZLOO EH PRYLQJWRLQYHVWLJDWH
ZLWKLQGURXQGV,QWKHPHDQWLPHWKH3&VFDQH[SORUHWKHDUHD7KHFDUWLVVLPSO\DPHDQVRIWUDQVSRUWLQJJDUEDJH
GLVFDUGHGE\WKHKXPDQSRSXODWLRQRI/DQNKPDU7KLVULFKIRRGVXSSO\SURYLGHVDVL]DEOHSRUWLRQRIWKHQXWULWLRQDO
QHHGV RI /DQNKPDU %HORZ 7KH OLW WXQQHO OHDGV ZHVWZDUGO\ WRZDUG D ODUJH JDUEDJH GXPS QHDU WKH 5LYHU +,DO
V
EDQNV7RWKHZHVWWKHWXQQHOOHDGVLQWRWKHKHDUWRI/DQNKPDU%HORZ
 7KH5DW0LOLWLD

,QVHYHUDOPLQXWHVWKH3&VFDQKHDUDJURXSRIUDWVDSSURDFKLQJIURPWKH&LW\RI5RGHQWV7KHUHLVDORZPXUPXURI
VTXHDN\YRLFHVEXWQRGLVFHUQLEOHVSHHFK
:KHQWKHILJXUHVFRPHLQWRYLHZLWLVREYLRXVO\DKDVWLO\RUJDQL]HGURGHQWPLOLWLD3ODLQO\JDUEHGVPDOOUDWVFDUU\
VLPSOHWRROVDQGFOXEVDVWKH\FRZHUEHKLQG DVLQJOHODUJHUDWZLWKDQDLURIEUDYDGRDQGDXWKRULW\
:KHQWKH3&VFRPHLQYLHZRUZKHQWKHPLOLWLDFRPHVLQVLJKWRIWKHSODFHZKHUHWKH3&VZHUHVLJKWHGWKHOHDGHU
KDOWVDQGVKRXWVLQDKLJKSLWFKHGVLELODQWYRLFH

+XPDQWKO 7KWDQG IRUWK DQG LGHQ WLI\ \RXUWKHOIWK )RU ZKDW UHDWKRQ GR \RX WUHWKSDWK RQ WKH ULJKWIXO GRPDLQ RI
/DQNKPDU
WKURGHQWNLQG"
7KH '0 VKRXOG UHPLQG WKH FKDUDFWHUV RI 'XFKLQ
V UHTXHVW WKDW WKH SDUW\ GHPRQVWUDWH UHVSHFW IRU WKH 5DW+XPDQ
7UHDW\*UHHFK\WKHUDWVSRNHVPDQLVWKH HTXLYDOHQWRIDYLOODJHDOGHUPDQ+HH[SHFWVDFHUWDLQGHIHUHQFHDQGLI
WKH3&VDUHSROLWHDQGUHVSHFWIXOKHZLOOVSHDNZLWKWKHPLQDVLPLODUPDQQHU,IWKH3&VRIIHQGRUWU\WRLQWLPLGDWH
*UHHFK\ KH ZLOO ZLWKGUDZ ZDUQLQJ WKH 3&V QRW WR DGYDQFH IXUWKHU LQWR /DQNKPDU %HORZ XQOHVV WKH\ ZDQW UHDO
WURXEOH$Q\DJJUHVVLYHPRYHVZLOOPDNHQHJRWLDWLRQVYHU\GLIILFXOWEXWWKHUDWPLOLWLDLVQRPDWFKIRUWKH3&V
*UHHFK\KDVVHQWIRUDQRIILFLDOVSRNHVPDQRIWKH5RGHQW&RXQFLODQGDQHVFRUWRIWUDLQHGUDW VROGLHUV7KH\ZLOO
DUULYHLQPLQXWHVDQG*UHHFK\ZLOOWU\WRVWDOOWKH3&VXQWLOWKHLUDUULYDO+HZLOODOWHUQDWHO\PDNHDVVXUDQFHVWKDW
WKHURGHQWVEHDUWKHKXPDQVQRLOOZLOOZKLOHLQVLVWLQJWKDWWKHKXPDQVDUHWUHVSDVVLQJZLWKRXWSHUPLVVLRQRQURGHQW
VRLO,IKHFDQQRWVWDOOWKH3&VRULIWKH3&VDWWDFN*UHHFK\ZLWKGUDZVDORQJZLWKWKHUHVWRIWKHPLOLWLDDQGZDLWV
IRUWKHURGHQWGHOHJDWLRQWRDUULYH
 7KH2IILFLDO'HOHJDWLRQ
7KH RIILFLDO GHOHJDWLRQ LV OHG E\ &KLYHV FKLHI VSRNHVUDW IRU WKH URGHQW &RXQFLO &KLYHV LV D FLYLOL]HG GLSORPDWLF

DULVWRFUDWLFHOGHUUDWZKRZDVKHOGDSROLWLFDOSULVRQHUGXULQJWKHODVW5DW3ODJXH&KLYHVLVDSDFLILVWDUDUHTXDOLW\
IRUDUDWEXWDQLGHDOVSRNHUDWIRUOLDLVRQZLWKKXPDQV
&KLYHVILUPO\DVVHUWVWKHVRYHUHLJQW\RI/DQNKPDU%HORZEXWZLOOSDWLHQWO\OLVWHQWRZKDWHYHUWKH3&VKDYHWRVD\
+LVPDMRUREMHFWLYHLVWRDYRLGDQLQFLGHQWWKDWPLJKWSUHFLSLWDWHDQRWKHUZDUZLWKWKHKXPDQV&KLYHVVSHDNVVORZO\
DQGSUHFLVHO\ZLWKRQO\DWUDFHRIUDWW\VTXHDNDQGOLVS

7KHRIILFLDOGHOHJDWLRQLVHVFRUWHGE\DGR]HQRIWKH*XDUGLDQVRIWKH3HDFHHOLWHUDWWURRSGHGLFDWHGWRWKHGHIHQVH
RI WKH WXQQHOV IURP LQYDGHUV 7KH OHDGHU RI WKH HVFRUW LV 0XVNDWHO D \RXQJ VZDVKEXFNOLQJ UDW LQ WKH 7KUHH
0XVNHWHHUV WUDGLWLRQ +H LVD ILUHEUDQGDQG WKHDQWLWKHVLV RI&KLYHV ,QFHQVHG E\WKHHIIURQWHU\RIWKH KXPDQVLQ
PDUFKLQJ XQLQYLWHG LQWR UDW WHUULWRU\ KH ZDQWV WR UDOO\ WKH UDW FLWL]HQU\ WR UHSHO WKH VPRRWKVNLQQHG WUHVSDVVHUV
)XUWKHUPRUH0XVNDWHOLVDQDUURJDQWVZRUGVPDQZKRZRXOGORYHWREHDWDKXPDQEHIRUHDQDGRULQJDXGLHQFH
%XW&KLYHVZLOOPDQDJHWRNHHS0XVNDWHOXQGHUFRQWURODQGWKH\RXQJVZRUGVUDW
ZLOOQRWEHFRPHLQVXERUGLQDWH+RZHYHULID3&JRDGV0XVNDWHOHQRXJKKLVFRQWUROPLJKWVQDSDQGDVHULRXV
LQFLGHQW ZLOORFFXU,QVSLWHRIWKH+XPDQ5RGHQW7UHDW\UDWVDQGKXPDQVZLOOILJKW
&KLYHVZLOORUGHUWKHJXDUGVUDWVWRLQWHUIHUHDQGVXEGXHERWKKXPDQDQGUDWDQGKRSHIXOO\WKHRWKHU3&VZLOOWU\WR
VWRSWKHILJKWEHIRUHVRPHRQHLVKXUW2QFHWKHWZRFRPEDWDQWVDUHVHSDUDWHGDQGVXEGXHG&KLYHVZLOOGHPDQGDQ
LPPHGLDWHDSRORJ\IURPERWKPDQDQGUDW0XVNDWHOIXQGDPHQWDOO\DJRRGVROGLHUZLOOFRPSO\ZLWKDVPXFKJRRG
ZLOODVKHFDQPXVWHU,IWKH3&GRHVQRWDOVRFRPSO\&KLYHVZLOOFRQWLQXHWREHSROLWHEXWKHZLOOLQVLVWWKDWWKH
3&V OHDYH DW RQFH +H QRU DQ\ RI WKH RWKHU UDWV RI /DQNKPDU %HORZ ZLOO EH ZLOOLQJ WR FRRSHUDWH ZLWK WKH
LQYHVWLJDWLRQ
&KLYHV2IIHUV+LV$LG
:KHQ WKH 3&V H[SODLQ WKDW WKH\ DUH
ORRNLQJ IRU NLGQDS YLFWLPV DQG GHVFULEH
WKHFLUFXPVWDQFHVWKDWOHGWRWKHLUVHDUFK
LQJ WKH UDW WXQQHO &KLYHV ZLOO RIIHU WR
DVVLVWWKHPLQWKHLULQYHVWLJDWLRQ
+HDVVXUHVWKHPDWRQFHWKDWWKHUHDUHQR
SODQV IRU D VHFRQG 5DW 3ODJXH 7KH
FRQVHTXHQFHVRIWKHILUVWZDUZLWKKXPDQV
ZHUH VRGLUHKHVD\VWKDWQRVDQHURGHQW
ZRXOGFRQVLGHUHPEDUNLQJRQDVHFRQG
&KLYHVDFNQRZOHGJHVWKDWWKHUHKDYHEHHQ
UHSRUWVRIYHU\ODUJHIRUHLJQUDWVEXWKHLV
TXLFN WR GLVDVVRFLDWH /DQNKPDU %HORZ
IURPWKHDOLHQV+HVD\VWKDWVWUDQJHUDWV
ZKLFKKDYHWKLFNDFFHQWVDQGXQSOHDVDQWRGRUVKDYHEHHQVHHQLQVRPHRIWKHDEDQGRQHGDQGLQIUHTXHQWO\WUDYHOHG
WXQQHOV7KHSUHVHQFHRIWKHDOLHQUDWVDUHWROHUDWHG&KLYHVDGGVEHFDXVHWKHVHWXQQHOVDUHIDUIURPWKHSRSXODWLRQ
FHQWHUVRI/DQNKPDU%HORZ
&KLYHV FDWHJRULFDOO\ GHQLHV DQ\LQYROYHPHQW LQ WKH DWWDFNV RQ WKH JUDQDULHV 6XFK DFWV KH VD\V ZRXOG UHTXLUH D
ODUJH QXPEHU RI UDWV DQG WKHUHIRUH FRXOG QRW EH FRQGXFWHG ZLWKRXW QRWLFH E\ JRYHUQPHQW DXWKRULWLHV 6LQFH VXFK
DWWDFNV ZRXOG EH LQ YLRODWLRQ RI WKH +XPDQ5RGHQW WUHDW\ QR UDW JRYHUQPHQW ZRXOG HQFRXUDJH RU SHUPLW VXFK
DFWLYLWLHVIRUIHDURIKRVWLOHKXPDQUHVSRQVH
:KHQWKH3&VDVNDERXW+LVYLQ&KLYHVDQVZHUVWKDWERWK+LVYLQDQGKLVGDXJKWHU+LVYHWKDYHEHHQRXWRIIDYRU
ZLWKWKH&RXQFLOVLQFHWKHGHEDFOHRIWKH+XPDQ5DW:DU1HLWKHUKDVEHHQVHHQLQ/DQNKPDU%HORZIRUPRUHWKDQD
\HDU
&KLYHVDGPLWVKRZHYHUWKDWKHZRXOGQRWEHVXUSULVHGWRILQG+LVYLQDWWKHERWWRPRIDQRWKHUSORW+LVYLQKDV
DOZD\VEHHQDPELWLRXVDQGSRZHUKXQJU\DQGDQDWWHPSWWRDEGXFW)DIKUGDQG*UD\0RXVHUZRXOGQRWEHRXWRI
FKDUDFWHU
,QGLUHFWSURSRUWLRQWRWKHGLSORPDWLFVNLOOVRIWKH3&V&KLYHVZLOORIIHUDLGLQILQGLQJWKHKHURHV$WPLQLPXP
&KLYHVZLOOWHOOWKH3&VRIDUHPRWHVHFWLRQRIUDWWXQQHOVFDOOHGWKH&DW
V&UDGOHQRORQJHUYLVLWHGE\ORFDOUDWVEXW
ODUJHHQRXJKWRKRXVHDSRSXODWLRQRIIRUHLJQUDWVZLWKRXWFDOOLQJDWWHQWLRQWRLWVHOI&DW
V&UDGOH&KLYHVH[SODLQV
KDVEHHQIUHTXHQWHGE\+LVYLQDQGKLVIROORZHUVLQWKHSDVW
,I WKH 3&V KDYH EHKDYHG LQ D KRVWLOH RUXQIULHQGO\PDQQHU&KLYHVZLOOJLYH WKHPD PDS WRWKH &DW
V&UDGOHDQG
VXJJHVW WKDW WKH\ OHDYH LPPHGLDWHO\ EHIRUH VRPH KRWKHDGHG UDWV GHFLGH WR DYHQJH WKLV XQZDUUDQWHG LQFXUVLRQ RQ
URGHQWWHUULWRU\
,IWKH3&VKDYHEHHQPRGHUDWHO\SROLWHDQGFRRSHUDWLYH&KLYHVZLOOVHQG0XVNDWHODQGWKH*XDUGLDQVRIWKH3HDFH
DVJXLGHVWRWKH&DW
V&UDGOH,IWKH3&VKDYHEHHQIRUWKULJKWDQGKRQRUDEOH0XVNDWHOPD\HYHQEHKHOSIXO+HPD\
YROXQWHHUVXJJHVWLRQVDQGRIIHUKLVVZRUGDWWKHKXPDQ
VVLGHHYHQDJDLQVW+LVYLQDQGRWKHUIRUHLJQHUURGHQWV
,IWKH3&VKDYHHDUQHG0XVNDWHO
VGLVOLNHRUGLVWUXVWKHZLOORQO\GHOLYHUWKH3&VWRWKH&DW
V&UDGOHWKHQDEDQGRQ
WKHPWRWKHLURZQGHYLFHV0XVNDWHOZLOOIROORZWKHVHZHUWXQQHOWRWKHVRXWKSDVVLQJXQGHU2JRWKH%OLQG
VKRXVH
VHH IROGXSPDSRIWKH6HZHUV%HORZ/DQNKPDU

7KH&DW
V&UDGOH 6HH0DS;O
7KHQDPHRIWKLVDUHDFRPHVIURPDOHJHQGDU\UDWFKLHIWDLQZKRLVVDLGWRKDYHNHSWDWDPHGFDWZKLFKGHIHQGHGKLV
WXQQHOV IURP DPELWLRXV UDW UDLGHUV 7KLV VRPHZKDWLPSODXVLEOH OHJHQG LVJLYHQ VRPHFUHGLELOLW\ E\ WKH XQXVXDOO\
JUHDWVL]HRIWKHPDLQHQWUDQFHSDVVDJHDQGFHQWUDOFKDPEHURIWKHQHVW%RWKDUHFHUWDLQO\ODUJHHQRXJKWRSHUPLWD
IDLUVL]HGFDWWRFRPHDQGJRDWZLOO
7KH&DW
V&UDGOHLVORFDWHGMXVWDERYHWKHVHZHUKROGLQJWDQNXQGHUWKH7HPSOHRIWKH5DW*RGVHHDUHD0DS,OO
DQGWKHIROGXSPDSRIWKH6HZHUV%HORZ/DQNKPDU7KHSDUW\ZLOODUULYHWKURXJKWKHPDLQHQWUDQFHORFDWHGLQWKH
VHZHUWXQQHOVRXWKRIWKHKROGLQJWDQN
%HFDXVHWKHPDLQHQWUDQFHLVVRODUJHLWKDVEHHQGHHPHGLQGHIHQVLEOHE\SUXGHQWUDWV)RUWKLVUHDVRQDQGEHFDXVH
WKHQHVWLVVRIDUIURPWKHEXONRI*UHDWHU/DQNKPDU%HORZWKHDUHDKDVQRWEHHQUHFHQWO\LQKDELWHG
'XULQJWKH5DW:DUVKRZHYHU+LVYLQXVHGWKLVDUHDDVHPHUJHQF\EDUUDFNVIRUWKHKXJHSHDVDQWPLOLWLDKHUHFUXLWHG
IURPWKHJUDLQILHOGVVXUURXQGLQJ/DQNKPDU7KHFKDPEHUVZHUHFUXGHO\RXWILWWHGXQFRPIRUWDEOHDQGGHVSHUDWHO\
RYHUFURZGHG :KHQ WKH ZDU HQGHG VR GLVDVWURXVO\ IRU WKH UDWV WKH DUHD ZDV RQFH DJDLQ DEDQGRQHGDQG LW KDV
UHPDLQHGWKDWZD\XQWLOQRZ
6LQFHUHHQWHULQJWKHDUHD+LVYLQ
VDUP\KDVFRQVWUXFWHGDQGFRQFHDOHGVHYHUDOQHZWXQQHOV$QRUPDOPDQKDVD
FKDQFHRIGLVFRYHULQJWKHVHFUHWSRUWDOVLIVHDUFKLQJWKHDUHD2QHQHHGRQO\WRSXVKWKHSRUWDOVRSHQ
7KH5HWXUQRI+LVYLQ
+LVYLQKDVRQFHDJDLQUHWXUQHGWR/DQNKPDUZLWKGUHDPVRIFRQTXHVW7KLVWLPHKHKDVVRXJKWWRHQOLVWWKHDLGRIWKH
5DW*RGRIOOWKPDUDQGLWVIROORZHUV+HUHLQWKH&DW
V&UDGOH+LVYLQKDVEURXJKWDQDYDWDURIWKH5DW*RGVDLGWR
EHDEDVWDUGVRQRIWKHJRGKLPVHOIDGHPLURGHQWQDPHG(UDVWXVWKH:LOG
(UDVWXVLVDSRZHUIXOFKDULVPDWLFILJXUH(PEDUNLQJRQDFUXVDGHWRFRQYHUWWKHQRQEHOLHYHUVRI/DQNKPDU:LWK
WKHDLGRI+LVYLQ(UDVWXVKDVVXPPRQHGWKHSULHVWKRRGRI/DQNKPDU
V5DW*RGWHPSOH,QWKHJUHDWFKDPEHURIWKH
&DW
V&UDGOH(UDVWXVKDVWDNHQRQWKHDVSHFWRIWKH5DW*RGKLPVHOIDQGKDVLQIXVHGWKHSULHVWVZLWKDQHZVSLULW
DQG DPELWLRQ ,Q WXUQ WKH 5DW *RG
V FOHUJ\ KDV JRQH IRUWK DPRQJ WKH GHSULYHG DQG GLVHQFKDQWHG RI /DQNKPDU
V
FLWL]HQVSUHDFKLQJWKHJHQHURVLW\RIOOWKPDU
VSDWURQGHLW\
5HVFXLQJ)DWKUGDQGWKH*UD\0RXVHU
$OWKRXJK QRW DZDUH RI WKH QHZ HVFDSH WXQQHOV UHFHQWO\ GXJ E\ WKH OOWKPDULDQ UDW WURRSHUV WKH 3&V KDYH WKH
DGYDQWDJHRIWKHDUHDPDSJLYHQWKHPE\&KLYHV
6RRQHURIODWHUWKH3&VZLOOEHIRUFHGWRUHVRUWWRPHOHHLQUHVFXLQJWKHFDSWLYHKHURHVEXWWKHLUFKDQFHVIRUVXFFHVV
LQFUHDVHLIWKH\XVHVXEWOHW\RUFOHYHUWDFWLFVUDWKHUWKDQDIURQWDODVVDXOW
7KH3&VDUHRXWQXPEHUHGE\WKHUDWWURRSHUV7KLVIDFWE\LWVHOIZRXOGQRWEHDVHULRXVWKUHDWWRWKHSDUW\
VPLOLWDU\
VXSHULRULW\EXWFRPELQHGZLWK+LVYLQ
VSRZHUVDQGWKHJRGDVSHFWRI(UDVWXVWKHUDWDUP\LQWKH&DW
V&UDGOHLVD
IRUPLGDEOHIRUFH
+LVYLQE\KLPVHOIZLWKKLVPDJLFDODELOLWLHVSUHVHQWVVRPHGDQJHUWRLQFDXWLRXV3&VEXW+LVYLQJHQHUDOO\EXJVRXW
ZKHQ WKH JRLQJ JHWV WRXJK 7KH UHDO GDQJHU LV (UDVWXV $OWKRXJK KH GRHV QRW ORRN SDUWLFXODUO\ DODUPLQJ LQ KLV
QRUPDOVL]HGUDWIRUPZKHQKHWDNHVRQWKHDVSHFWRIKLVIDWKHUWKH5DW*RGKHLVSUREDEO\PRUHWKDQDPDWFKIRU
WKH3&V
,QWKH 3&
VIDYRUKRZHYHULVDQHXWUDOL]LQJIHDWXUHRI(UDVWXV
VSRZHUV,QKLVJRGDVSHFW(UDVWXVLVWRRODUJHWR
PRYHWKURXJKQRUPDOUDWVL]HGWXQQHOV2QO\LQWKHJUHDWFHQWUDOFKDPEHUDQGWKHPDLQHQWUDQFHWXQQHOWRWKH&DW
V
&UDGOHFDQ(UDVWXVPDQHXYHULQKLVJRGDVSHFW$VDQDYDWDUKHLVLPSULVRQHGE\KLVRZQVL]H
3RVVLEOH3&6WUDWHJLHV
7R KHOS WKH '0 DQWLFLSDWH DQG SUHSDUH IRU WKH GLIIHUHQW WDFWLFV WKH SOD\HUV PD\ HPSOR\ D OLVW RI SRVVLEOH 3&
VWUDWHJLHVRQKRZWRUHVFXHWKHFDSWLYHKHURHVIROORZV
D)URQWDO$VVDXOW 7KLVZLOOZRUNMXVWILQHLIWKH3&VDUHH[WUHPHO\SRZHUIXOZHOOVXSSOLHGZLWKILUVWUDWHPDJLF
DQGVXSSRUWHGE\0XVNDWHO
V*XDUGLDQVRIWKH3HDFH,IWKH\DUHQRWWKH\ZLOOEHZKLWWOHGGRZQE\WKHUDWWURRSHUV
WKHQGHYDVWDWHGE\(UDVWXV
VFRPEDWDQGPDJLFDODELOLWLHV
E)HLQWDQG 'HFR\ ZLWK)ODQNLQJ0DQHXYHU 7KLVPLJKWZRUNLIWKHUDWWURRSHUVDUH GUDZQRIILQSXUVXLWRID
SRUWLRQRIWKHSDUW\ZKLOHDQRWKHUSDUW XVHVVWHDOWKRUPDJLFDOFRQFHDOPHQWWRVQHDNWKURXJKWKHVLGHSDVVDJHVLQ
VHDUFK RI WKH FDSWXUHG KHURHV 7KHUH LV VWLOO WKH GDQJHU RI EXPSLQJ LQWR (UDVWXV LQ WKH PDLQ FKDPEHU DQG
XQGHUHVWLPDWLQJKLVDELOLWLHVZKHQKHWDNHVRQKLVJRGO\DVSHFW

F6WHDOWK7KLVPLJKWZRUNLIWKH3&VDUHVXSHULRUWKLHYHVRUDUHVXSSRUWHGZLWKPDJLFDOFRQFHDOPHQWRUVXEGXLQJ

VSHOOV6XFKDSODQLVHQKDQFHGLISURYLVLRQVDUHPDGHIRUGLVWUDFWLRQVDQGDIDVWJHWDZD\ZKHQWKH\DUHGLVFRYHUHG
G 'LVJXLVH 7KLV ZRUNHG IRU *UD\ 0RXVHU LQ&$O 6ZRUGVRIWKH8QGHUFLW\ :LWK ZLWPDJLFDOVXSSRUWDQG D
FOHYHUFRYHUVWRU\WKLVPLJKWJHWWKH3&VSDVWWKHILUVWJXDUGSRLQWEXWZLOOSUREDEO\QRWDOORZWKHPJHW)DIKUGDQG
*UD\0RXVHURXW
5RGHQW7DFWLFV$Q2YHUYLHZ
:KHQDQLQWUXGHULVGLVFRYHUHGWZRJXDUGVUXQIURPWKHHQWUDQFHWRVSUHDGWKHDODUPLQWKHVPDOOHUFKDPEHUVZKLOHIRXUJXDUGV
WU\WRKROGWKHPDLQHQWUDQFH,IWKHDWWDFNVHHPVOLNHO\WRRYHUUXQWKHJXDUGVWDWLRQWKHPDLQHQWUDQFHJXDUGVUHWUHDWWRDQGUDOO\
LQWKHPDLQFKDPEHUZLWK(UDVWXV7KHGHIHQGHUVRIWKHJUHDWFKDPEHUZLOOEHMRLQHGLQVKRUWRUGHUE\UDWWURRSHUVIURPWKH
EDUUDFNVDQGWKHVWRUDJHURRP7KHVL[UDWJXDUGVLQWKHFRQILQHPHQWURRPUHPDLQWRJXDUGWKHLUFKDUJHV
+LVYLQSHHUVLQWRWKHPDLQFKDPEHUWKHQLPPHGLDWHO\PDNHVKLVHVFDSH(UDVWXVZLWKGUDZVWRWKHIDUHQGRIWKHPDLQFKDPEHU
DQGZDLWVIRUWKHUDWWURRSHUVWRPDVVEHIRUHKLP7KHQKHXVHVKLVFOHULFDOVSHOOVWRVXSSRUWWKHPRULIQHFHVVDU\KHFDOOVXSRQ
KLPVHOIWKH $VSHFWRIWKH5DW*RG:LWKWKHWUDQVIRUPDWLRQWDNLQJRQHURXQG(UDVWXVVZHOOVWRIRXUWLPHVKLVQRUPDOVL]HDQG
EHFRPHVDJLDQWUDWEHDVWWKDWLQVWLQFWLYHO\DWWDFNVWKHHQHPLHVRIWKHQHVW

(QFRXQWHU.H\
6HH0DS;,

 0DLQ(QWUDQFH7XQQHO

6L[UDWWURRSHUVORXQJHDQGVTXHDN DPRQJWKHPVHOYHV7KHFRQYHUVDWLRQ LV YXOJDUDQG RILQWHUHVWRQO\WRVLPLODUO\ORZPLQGHG

URGHQWV7KHHQWUDQFHWXQQHOLVDERXWDIRRWZLGHKHUH

8QOHVVLQYLVLEOHRURWKHUZLVHDLGHGE\PDJLFQRRQHFDQVOLSSDVWWKHJXDUGVZLWKRXWEHLQJQRWLFHG$IHZPLQXWHVDIWHUWKH3&V
DUULYHKRZHYHUIRXURIWKHUDWWURRSHUVVOLSRIIWRZDUGWKHEDUUDFNV LQ VHDUFKRIDELWHWRQLEEOH$FOHYHUUXVHDOXFN\UXVKD
PDJLFDOVSHOODQ\QXPEHURIWULFNVPLJKWJHWWKH3&VSDVWWKLVSRLQWZLWKRXWZLWKRXWWULSSLQJDQDODUP
,IWKHDODUPLVVRXQGHGWKHUDWWURRSHUVWU\WRKROGWKHLUSRVLWLRQVDJDLQVWWKHLQWUXGHUV%XWLIWKH\DUHLQGDQJHURIEHLQJRYHUUXQ
WKH\ZLWKGUDZDQGUDOO\ZLWK(UDVWXVLQWKHPDLQFKDPEHU

7KH%DUUDFNV

6L[UDWWURRSHUVDUHVOHHSLQJKHUH(YHQ LIWKHDODUPLVVRXQGHGLWWDNHVWKHPWKUHHURXQGVWRVWUXJJOHLQWRWKHLUDUPRUDQGJUDE
WKHLUZHDSRQV:KHQUHDG\WKH\UXVKLQWRWKHPDLQFKDPEHUWRJXDUG(UDVWXV

6WRUDJH

6L[UDWWURRSHUVDUHKHUHVWXIILQJWKHLUIDFHVZLWKFKHHVHDQGWHOOLQJORQJZLQGHGRIIFRORUMRNHVZLWKODPHSXQVDVSXQFKOLQHV

7KHMRNHVDUHQRWFRQFHLYDEO\DPXVLQJWRDKXPDQEXWWKHUDWVDUHLQVWLWFKHVVRPXFKVRWKDWWKH\PD\EHWDNHQFRPSOHWHO\E\
VXUSULVHE\WKHLQWUXGHUV
,IWKHDODUPLVVRXQGHGWKHVHVL[WURRSHUVWDNHWKUHHURXQGVWRVWUXJJOHLQWRWKHLUDUPRUDQGJUDEWKHLUZHDSRQVWKHQWKH\UXVK
RXWLQWRWKHPDLQFKDPEHUWRVXSSRUW(UDVWXV

&RQILQHPHQW

+HUHLQDSDLURIFDJHVDUHWKHJUHDWHVWKHURHVRI1HKZRQ7KH\DUHGLUW\WLUHGKXQJU\DQGPLVHUDEOH7KHLU GLVSRVLWLRQVFDQEH
GHVFULEHGDVLUULWDEOH5HJXODUGRVHVRIGLPLQXWLRQSRWLRQVKDYHNHSWWKHPUDWVL]HG

6L[ UDW WURRSHUV JXDUG WKH FDSWLYHV ,QLWLDOO\ WKH\ VSHQW PXFK RI WKHLU WLPH WDXQWLQJ WKH WZR KHURHV DQ HQWHUWDLQLQJ VSRUW IRU D
ZKLOH %XW VRRQ WKH FDSWLYHV VWRSSHG UHVSRQGLQJ DQG VLPSO\ VDW DURXQG JODULQJ SRLVRQRXVO\ DW WKHLU FDSWRUV 1RZ WKH
HQWHUWDLQPHQW FRQVLVWV RI SOD\LQJ ZLWK WKH SULVRQHUV
 IRRG EHIRUH LW LV WRVVHG RQ WKH IORRUV RI WKH FDJHV 7KH GHWDLOV RI WKLV
HQWHUWDLQPHQWZLOOEHRPLWWHGWRDYRLGGLVWXUELQJGHOLFDWHVWRPDFKV
,IWKHDODUPLVVRXQGHGRQHJXDUGJRHVWRHDFKRIIRXUSDVVDJHVOHDGLQJRXWWKHFKDPEHUZKLOHWKHRWKHUWZRVWDQGJXDUGQHDUWKH
FDJHV,IWKLQJVORRN URXJKWKHVHVL[UDWVKDYH DJUHHGWRUXQIRULW RQWKHORJLFDOJURXQGVWKDWDQ\WKLQJWKDWJHWVDVIDUDVWKLV
FKDPEHULVQRWJRLQJWREHVWRSSHGE\VL[UDWV

7KH$OFKHPLVW
V/DE

+LVYLQ KDV NLGQDSSHG DQ DOFKHPLVW )DUDJLR DQG LPSULVRQHG KLP KHUH )DUDJLR PDQXIDFWXUHV GLPLQXWLRQ SRWLRQV DQG WKHLU
DQWLGRWHVIRU+LVYLQ,I)DUDJLRUHIXVHVWRSURGXFHWKHSRWLRQV+LVYLQUHIXVHVWRIHHGKLP$VIXUWKHULQFHQWLYHVLQFH)DUDJLRLV
FXUUHQWO\WUDSSHGLQDVPDOOURRPXQGHUJURXQGKHPXVWFRQWLQXHWRFRQVXPHSRWLRQVRUKHUHWXUQVWRQRUPDOVL]HLQWKHFRQILQHV
RIDWKUHHIRRWVTXDUHFKDPEHU
)DUDJLRLVFKDLQHGWRDZDOO7KHFKDLQLV RIILQHFUDIWVPDQVKLSFKDQFHWREUHDNHTXDOWREHQGEDUVRQ6WUHQJWK7DEOH

)DUDJLRLVSHUIHFWO\ZLOOLQJWRFRRSHUDWHZLWKDQ\RQHZKRPLJKWKHOSIUHHKLP+HKDVVHYHQSRWLRQVRIGLPLQXWLRQ
DQGVHYHQDQWLGRWHSRWLRQVKLGGHQLQKLVFRPSRQHQWVXSSOLHV

,WPD\RFFXUWRFOHYHUSOD\HUVWKDWDVLSRIDQDQWLGRWHSRWLRQPLJKWPDNHD3&VLJQLILFDQWO\ODUJHUZKLOHVWLOODEOHWRPRYHDERXW
LQWKHODUJHUFKDPEHUDQGPDLQHQWUDQFHWXQQHO([SHULPHQWLQJLVGDQJHURXVEXWXQGHU)DUDJLR
VVXSHUYLVLRQWKHULVNLVPLQLPDO
(QKDQFHPHQWVRIWKH3&VFRPEDWDELOLWLHVDUHOHIWWRWKH'0
VGLVFUHWLRQ

+LVYLQ
V4XDUWHUV

+LVYLQZLOODOZD\VEHIRXQGKHUHSRQGHULQJDQGSROLVKLQJKLVPDVWHUSODQIRUWKHVXEMXJDWLRQRIDOORI/DQNKPDU,IVXUSULVHGKH
ZLOOSUHWHQGWRVXUUHQGHU JRRGQDWXUHGO\ WKHQH[SORGH DFRXSOH RIJDV ERPEV)DUDJLRKDVPDQXIDFWXUHG8QGHUFRYHURIWKHVH
ERPEVZKLFKDUHHTXLYDOHQWWRDVWLQNLQJFORXGVSHOO+LVYLQZLOOHVFDSHWKURXJKKLVEROWKROH+HFDQDSSHDUDVDQDUFKYLOODLQLQ
ODWHUDGYHQWXUHV
,IWKHDODUPLVVRXQGHG+LVYLQZLOOPDNHDEULHIDSSHDUDQFHLQWKHPDLQFKDPEHUWKHQKHDGIRUKLVEROWKROH
,W LV LPSRUWDQW WKDW +LVYLQ HVFDSHV 6XFK D YLOODLQ LV DOZD\V PRUH XVHIXO DV D UHWXUQLQJ QHPHVLV WKDQ DV D FDSWXUHG RU NLOOHG
RSSRQHQW

7KH*UHDW&KDPEHU

7KLV LV (UDVWXV

V JUHDW WHPSOH WR WKH 5DW *RG RI OOWKPDU +HUHDVPDOOFURZGRIWKHHOHFWPD\FRPHDQGREVHUYHDVWKHPRUWDO
URGHQWIRUPRI(UDVWXVWUDQVIRUPVLQWRWKHDZHVRPHLPPDQHQFHRIWKH5DW*RG
,IWKHILJKWKDVWXUQHGDJDLQVWWKHUDWV LQ WKHJUHDWFKDPEHUDEDQGRIUDWWURRSHUVZLOOVWDQGLQIURQWRI(UDVWXVRQJXDUGDQGKH
ZLOOVZHOO XSWRIRXUWLPHVKLV QRUPDOVL]H+HZLOOJORZZLWKDWHUULEOHOLJKWJDLQIODVK\PDJLFDOSRZHUVDQGEHFRPHDOPRVW
LQYXOQHUDEOH WRLQMXU\RUPDJLFDO DVVDXOW +LVYRLFH VRXQGVDVLILWLVFRPLQJIURPGHHSZLWKLQDFDYHUQ/LVWHQHUVFDQQRWODWHU
UHFDOOWKHVSHFLILFVRIZKDWZDVVDLGEXWFDQUHPHPEHUWKDWWKHYRLFHILOOHGWKHPZLWKWKHSRZHUDQGYLVLRQRIWKH5DW*RG
(UDVWXVWKH:LOG
6RQRIWKH5DW*RGRIOOWKPDU

0RUWDO)RUP WKOHYHOEODFNZL]DUG09KS$/&($7'PJ
PDJLFDO PDFH %ODFN &DW ZLWK DQ REVLGLDQ KHDG LQ WKH IRUP RI D EODFN FDW  WR KLW VRXQGV D EORRGFXUGOLQJ \HRZO DQG
FDXVHIHDU LQURGHQWVHDFK
URXQGRUVSHOO

6SHOOV
/HYHOFXUVH UHYHUVHGEOHVVFRPPDQGFDXVHIHDU UHYHUVHGUHPRYHIHDU
/HYHOFKDQWILQGWUDSVVSHDNZLWKDQL PDOV
/HYHOFDXVHGLVHDVH UHYHUVHGFXUHGLVHDVHGLVSHOPDJLF

$YDWDURIWKH5DW*RG)RUP $&09+'KS$7'PJ
MDZV FODZ FODZ6$FRORU
VSUD\RUK\SQRWLVP DVDVL[WKOHYHOLOOXVLRQLVWDVDQDWXUDODELOLW\RQFHSHUURXQG6'PDJLFDOUHVLVWDQFH

,I (UDVWXV LV LQ KLV DVSHFW IRUP ZKLOH LQ WKH YLFLQLW\ RI WKH 3&V WKHUH DUH OLNHO\ WR EH VRPH FDVXDOWLHV XQOHVV WKH FKDUDFWHUV
HYDFXDWHLQVKRUWRUGHU2QWKHRWKHUKDQGDGHFHQWFKDUDFWHUVKRXOGVXUYLYHWKHILUVWURXQG

(QGLQJWKH&KDSWHU

,IWKH3&VVXUYLYHWKHERXWZLWK(UDVWXV GLVFRYHUWKHFDSWLYHVEXWIDLOWRIUHHWKHKHURHVRQWKHLULQLWLDOSHQHWUDWLRQRIWKH&DW
V
&UDGOHWKHQWKH3&VKDYHIDLOHGWKHLUPLVVLRQ
%\ WKH WLPH WKH 3&V FDQ UHWXUQ WR WKH &DW
V &UDGOH ZLWK KHOS +LVYLQ (UDVWXV DQG WKH UHVW RI WKH UDWV ZLOO KDYH IOHG ZLWK WKH
FDSWLYHV LQ WKH GLUHFWLRQ RI OOWKPDU 7KH RYHUORUG ZLOO EH YHU\ GLVSOHDVHG DQG WKH 3&V PD\ ILQG WKHPVHOYHV IDFLQJ D WULDO IRU
WUHDVRQ
,IWKH3&VGLVFRYHUDQGIUHHWKHFDSWLYHVWKH\ZLOOEHFRPHSXEOLFKHURHV
7KHRYHUORUGZLOOKROGEDQTXHWVLQWKHLUKRQRUILQGWKHPSURILWDEOHDQGOHLVXUHO\MREVLQWKHUR\DOVHUYLFHJUDQWVL]DEOHJLIWVRI
ZHDOWKDQGFRPPLVVLRQEDOODGVLQWKHLUKRQRU
7KHUHDIWHUWKH3&VZLOOUHFHLYHWKHKRQRURIEHLQJVHOHFWHGIRUHYHU\GLUW\DQGGDQJHURXVSUREOHPZLWKZKLFKWKHRYHUORUGLV
IDFHG
)DIKUGDQGWKH*UD\0RXVHUDFNQRZOHGJHWKHLUJUDWLWXGHWRWKH3&V$QGDEDUEDULDQDOZD\VSD\VKLVGHEWV)DIKUGKDVVDLG
7KH3&VFDQH[SHFWWKHDLGRIWKHWZRKHURHVLQWKHIXWXUH(DFK3&JDLQVDVWDWXVOHYHOIRUEHLQJDFTXDLQWHGZLWKWKHRYHUORUG
DQGIRUEHLQJDNQRZQFRPSDQLRQRIWKHJUHDWHVWKHURHVRIDOO/DQNKPDU

&KDSWHU21(1,*+7,1/$1.+0$5

0DNHV$3URXG0DQ+XPEOH0LFKDHO6'REVRQ
/DQNKPDUFLW\RIWKLHYHVFLW\RIDGYHQWXUH2QWKH1LJKWRI)HDULWLVDFLW\ RIP\VWHU\DQGRIGDQJHUZKHQWKH
YHU\JRGVRI/DQNKPDUKDYHEHHQNQRZQWRURDPWKHVWUHHWV$GHQVHIRJEODQNHWVWKH7HQGHUORLQZKHUHQRKRQ HVW
PDQ JRHV DW QLJKW DQG ZKHUH QR VDQH PDQ ZDONV WKLV QLJKW 7KH VLOHQW VKURXGHG VWUHHWV VHHP VWLOO DQG VRIW
)RRWVWHSVDFODFNLQJDJDLQVWWKHFRE EOHVWRQHVDFRZOHGILJXUHLQWKHIRJWKHVHDUHWKHVLJKWVDQGVRXQGVRID
QLJKWZKHQWKHDLURI/DQNKPDULVWLQJHGZLWKWKHVFHQWRIGHDWKRULVLWMXVWWKHVDOW\VHDDLU"

2QH 1LJKW LQ /DQNKPDU LV D VKRUWDGYHQWXUH GHVLJQHG IRU WZR KLJKOHYHO FKDUDFWHUV SHUKDSV SHDN YHUVLRQV RI
)DIKUGDQGWKH*UD\0RXVHU%XWLWFDQDOVREHSOD\HGE\DPD[LPXPRIIRXUFKDUDFWHUVRIPDWXUHOHYHOV7KHXVHRI
VSHOOFDVWHUVLVQRWUHFRPPHQGHG
7KLV DGYHQWXUH LV VHW GXULQJ RQH RI /DQNKPDU
V QDWLRQDO KROLGD\V WKH 1LJKW RI )HDU VHH 6RXUFHERRN SDJH 
ZKLFKWDNHVSODFHRQWKHGD\RIWKH%DWLQWKHPRQWKRIWKH*RDW2QFHLQHYHU\VHYHQ\HDUVRQWKLVGDWHWKHJRGVRI
/DQNKPDUZDONWKHVWUHHWV,VWKLVWKHQLJKW"1RRQHNQRZVIRUVXUHEXWIHZVDQHPHQWDNHFKDQFHV
7KH DGYHQWXUH EHJLQV LQ WKH /DVW &KDQFH RQH RI WKH PRVW SRSXODU JDPEOLQJ KRXVHV LQ WKH 7HQGHUORLQ 7KH /DVW
&KDQFHLVGHVFULEHGKHUHLQVRPHGHWDLOVRWKDWLWFDQEHXVHGLQIXWXUHDGYHQWXUHV

7KH/DVW&KDQFH*DPEOLQJ'HQ
7KH1HLJKERUKRRG

7KH /DVW &KDQFH LV ORFDWHG QHDU WKH FRUQHU RI &DUWHU 6WUHHW DQG $WKHLVW $YHQXH VHD 0DS ; DUHD  LQ WKH
7HQGHUORLQ'LVWULFWVHH6RXUFHERRNSDJHV&DUWHU6WUHHWLVDZLGHVWUHHWEXV\ERWKGD\DQGQLJKWH[FHSWRI
FRXUVHRQWKH1LJKWRI)HDUZKHQLWLVGHVHUWHG&DUWHUVWUHWFKHVIURPWKH*UDQG*DWHQRUWKDOOWKHZD\WR7HPSOH
6WUHHWZKHUHLWFKDQJHVLWVQDPHWR5R\DO5RDG
$ORQJ WKH VWUHWFK WKDW SDVVHV WKURXJK WKH 7HQGHUORLQ WKH VWUHHW LV W\SLFDOO\ ILOOHG ZLWK UHVLGHQWV RI WKDW ZLFNHG
GLVWULFW:LWKPRVWRIWKHGHQL]HQVOLYLQJRQWKHZURQJVLGHRIWKHODZWKLHYHVDQGSLFNSRFNHWVDERXQG7KHUHLVD
FKDQFHHDFKGD\
WKDWDSLFNSRFNHWRUPXJJHUZLOOYLFWLPL]HDVWUDQJHU/RFDOUHVLGHQWVDQGREYLRXVO\ZHOODUPHGDQGDOHUWFKDUDFWHUV
DUHOHIWDORQH
7KH6WUHHWRIWKH7KLQNHUVPRUHFRPPRQO\NQRZQDV$WKHLVW$YHQXHLVDQDUURZWZLVWHGODQHWKDWUXQVEHWZHHQ
:DOO6WUHHWQHDUWKH0DUVK*DWHDOOWKHZD\DFURVV/DQNKPDUWRWKH1RUWK'RFNV$VWKH6WUHHWRIWKH*RGVLVZLGHU
DQGPRUHKHDYLO\WUDYHOHGRQO\WKRVHZLWKEXVLQHVVRQ$WKHLVW$YHQXHVKRXOGEHH[SHFWHGWRSDVVRQWKLVURDG
,IWKH/DVW&KDQFHLVWREHFRPHDPDMRUSDUWRI\RXU/DQNKPDUWFDPSDLJQWKHUDQGRPEXLOGLQJDQG13&JHQHUDWRUV
VKRXOGEHXVHGWRSRSXODWHWKHEXLOGLQJVDQGQHDUE\VKRSV)RUWKLVDGYHQWXUHQRVXFKJHQHUDWLRQLVQHHGHG

7KH%XLOGLQJ

7KH /DVW &KDQFH LVDQROGVOLJKWO\FURRNHGEXLOGLQJ LQ ERWKVHQVHV RIWKH ZRUGVRRWFRYHUHGDQGSDLQWSHHOHG

IURP\HDUVRIH[SRVXUHWRWKHVHDDLUDQGWKH *UHDW0DUVKPLVWV$VLJQGHSLFWLQJDSDLURIGLFHUROOHGWRGRXEOHRQHV
VQDNHH\HVKDQJVRYHUWKHGRRU$VWDLUZD\LQWKHEDFNOHDGVWRDODQGLQJDQGGRRURQWKHVHFRQGDQGILIWKVWRULHV
$UXVWHGUDLQJXWWHUUXQVDORQJWKHWRSHGJHRIWKHIODWURRIDQGFRQWLQXHVDORQJWKHVRXWKVLGHRIWKHEXLOGLQJDQG
LQWRDQDOOH\ZD\,QDEDGUDLQWKHUXVWHGKROHVOHDNWRUUHQWVRQWRSDVVHUVE\
,IRQHIROORZHGWKHDOOH\RQWKHVRXWKVLGHRIWKHEXLOGLQJKHZRXOGKDYHWRNLFNWKHSLOHVRIUXEELVKDQGVFDWWHUWKH
UDWVLQRUGHUWRJHWWRDEDFNGRRUOHDGLQJWRDNLWFKHQ,QWKHDOOH\UDWVPRUHWKDQKXPDQVVHHPWREHWKHGRPLQDQW
VSHFLHV
$WWDFKHGWRWKHPDLQEXLOGLQJLVDVPDOOHUHYHQUXGHUKXWDEDUHVKHOWHURFFXSLHGE\WKLHYHVDQGEHJJDUV$PD]HRI
DOOH\ZD\VOHDGVWR$WKHLVW$YHQXHWR&DUWHU6WUHHWLQDQRWKHUGLUHFWLRQDQGDOVRLQWRWKHVKLIWLQJLQQHUFRXUWVRIWKH
7HQGHUORLQRWKHUZLVHNQRZQDV&LW\*HRPRUSKEORFNV2QO\WKHEUDYHDQGZHOODUPHGGDUHWUDYHOLQWKRVHLQQHU
FRXUWVDQGHYHQWKHQWKH\ZDWFKWKHLUEDFNV
$OOLQDOOWKH/DVW&KDQFHLVQRWDQDWWUDFWLYHSODFHQRUDQLQYLWLQJRQH%XWWKRVHZKRNQRZLWLJQRUHWKHH[WHUQDO
DSSHDUDQFHDQGHQWHULWVZDOOVE\ZD\RIDGRRURQWKHILUVWIORRU

7KH)LUVW)ORRU

$UHD7KH0DLQ*DPEOLQJ+DOO
)DWW\JUHHWVDOPRVWDOORIKLVJXHVWVE\QDPHDWWKHGRRU+HKDVDSKHQRPHQDOPHPRU\IRUQDPHVDQGLIDFXVWRPHU
KDVEHHQWKHUHEHIRUHKHZLOOUHPHPEHU9DULRXVJDPLQJWDEOHVIHDWXULQJFDUGJDPHVJDPHVRIFKDQFHDQGGLFH
JDPHVRIYDULRXVVRUWVDUHORFDWHG WKURXJKRXWWKHURRP$EDUUXQVDORQJWKHULJKWKDQGZDOODQGDFDVKLHU
VFDJH
ZKHUH PRQH\ LV H[FKDQJHG IRU FKLSV LV GLUHFWO\ LQ IURQW RI \RX $ VSLUDO VWDLUFDVH LV LQ WKH FRUQHU 7KH URRP LV
EXVWOLQJDQGEXV\
7KHJDPEOLQJLQWKLVURRPQRUPDOO\LQYROYHVDPLQLPXPZDJHURIDEURQ]HDJRO%HWVRIPRUHWKDQULONVUHTXLUH
WKHDSSURYDORIWKHFDVKLHURU)DWW\
$UHD7KH.LWFKHQ
7KH /DVW &KDQFH KDV D WLQ\NLWFKHQWKDWFRRNVPRUHIRUWKHVHUYDQWVWKDQIRUWKHJXHVWV7KHFKHIPDNHVYDULRXV
GLVKHVDQGKRUVG
RHXYUHVIRUWKHKLJKHUVWDNHJDPEOHUVRQWKHVHFRQGDQGWKLUGIORRUV
$UHD&DVKLHU
V&DJH
7KH &DVKLHU
V &DJH KDV LURQ EDUV DQG D VPDOO ZLQGRZ 7KH GRRU OHDGLQJ WR WKH VWDLUZHOO DUHD  LV DOZD\V NHSW
ORFNHGDQGEDUUHG7KHUHLVDEHOODODUPWKDWWKHFDVKLHUFDQSXOODQGDWUDSLQWKHGRRURIWKHFDJHWULJJHUVDQDODUP
LIRSHQHGLPSURSHUO\
7KH FDJH FRQWDLQV G[ DJROV G[ VPHUGXNV DQG G[ ULONV DW DQ\ RQH WLPH :KHQ WKH FDJH LV
XQRFFXSLHGWKHPRQH\LVNHSWLQDQLURQVDIHZLWK DFRPSOH[ORFNRQDQRUPDOWKLHI
VFKDQFHVWRRSHQ
$UHD5HDU6WDLUZHOO
7KLVVWDLUZHOODVFHQGVWRSODWIRUPVDQGGRRUVRQWKHVHFRQGDQGILIWKIORRUV

$UHD7KH+RYHO
$RQH URRPVLQJOHVWRU\WKDWFKHGURRIKRYHOQRUPDOO\RFFXSLHG E\SHDVDQWV DQGWKLHYHV)DWW\UHQWVLWRXWIRU
VPHUGXNVDPRQWK7KHUHLVDIUHTXHQWWXUQRYHURIUHVLGHQWVEHFDXVHDQ\RQHZKRFDQQRWDIIRUGVPHUGXNVDPRQWK
LVHYLFWHGLPPHGLDWHO\DQGDQ\RQHZKRFDQDIIRUGHYHQVPHUGXNVILQGVEHWWHUDFFRPPRGDWLRQV
7KHSODFH LVILOWK\DQGFUDPSHGDQGWKHURRIOHDNV
7KHUHVLGHQWVGRQRWNQRZDERXWDVHFUHWGRRULQWKHIORRUWKDWOHDGVWRDQHQWUDQFHZD\LQWRWKHVHZHUV\VWHP)DWW\
EXLOWWKHVHFUHWSDVVDJHZD\WKLQNLQJVRPHGD\KHPLJKWQHHGWRPDNHDTXLFNH[LW
$OOLQIRUPDWLRQ DERXWWKHUHVLGHQWVVKRXOGEHVHFXUHGIURPWKH5DQGRP13&*HQHUDWLRQV\VWHP%HFDXVHWKHRFFX
SDQWVFKDQJHVRIUHTXHQWO\DQHZFKDUDFWHUVKRXOGEHUROOHGIRUHDFKYLVLWWKH3&VPDNH

7KH%DVHPHQW

7KHEDVHPHQWLVXVHGIRUXQXVXDODQGVRPHWLPHVJUXHVRPHJDPEOLQJFRQWHVWV2QO\)DWW\NQRZVDERXWWKHVHFUHW
H[LWWRWKHVHZHUQHWZRUN7KHVHZHUH[LWDOVROHDGVWRWKHWUDSGRRULQWKHKRYHODUHD
$UHD'ZDUI7RVVLQJ$UHQD
$SDWURQPXVWVWDQGEHKLQGWKHOLQHRQWKHIORRUDQGWRVVWKHGZDUIRQWRWKHKD\$GGLQJWRWKHFRPSOH[LW\RIWKLV
VWUDQJHVSRUWLVWKHIUHTXHQWXQZLOOLQJQHVVRIWKHGZDUYHVWREHWKURZQ
$UHD7KH3LW
7KHSLWLVXVHGIRUFRFNILJKWLQJEXOOEDLWLQJDQGVLPLODUJHQWHHOVSRUWVIRUDULVWRFUDWLFWDVWHV
$UHD&REUD%DVNHW
$QRWKHUSRSXODUVSRUWDWWKH/DVW&KDQFHLVFREUDNLVVLQJ7KHFREUDVRIFRXUVHDUHIXOO\SRLVRQRXVVDYLQJWKURZ
YVSRLVRQRUGHDWKLQURXQGV$FREUDKDVDFKDQFHRIVWULNLQJDWDNLVVHUDQGKDVQRUPDOFKDQFHVWRKLW

7KH6HFRQG)ORRU

7KHVHFRQG IORRULVIRUKLJKVWDNHVJDPEOLQJDQGRWKHULOOHJDOGLYHUVLRQV)RRGDQGGULQNVDUHVHUYHGWRWKHJDPEOHUV

RQWKLVIORRUDQGWKHPLQLPXPEHWLVDVLOYHUVPHUGXN$SDWURQPXVWPDNHDVXLWDEOHEULEHEHNQRZQWR)DWW\RU
KDYHKDGSURSHULQWURGXFWLRQVLQRUGHUWREHDOORZHGRQWKLVIORRUV
$UHD5RXOHWWH7DEOH
/DQNKPDUWURXOHWWHLVVLPLODUWRUHJXODUURXOHWWHEXWWKHUHDUH]HURHVDQGQXPEHUV6HHWKH'XQJHRQ0DVWHUV
*XLGHWROHDUQKRZWRKDQGOHJDPEOLQJLQWKH$' 'JDPH
$UHD%ODFNMDFN7DEOH
$WWKLVWDEOHWKHJDPEOHUVSOD\EODFNMDFNRULIWKH20SUHIHUVDQ\RWKHUFDUGJDPH
$UHD&UDSV
$WWKLVWDEOHWKHJDPEOHUVVKRRWFUDSVRULIWKH'0SUHIHUVDQ\RWKHUGLFHJDPH
$UHD6WDLUV
7KHGRRUOHDGLQJWRWKHVWDLUVLVORFNHGEXWDOOVWDIIPHPEHUVFDUU\NH\V

7KH7KLUG)ORRU

$UHD3ULYDWH*DPLQJ5RRP
,Q WKLV URRP ZKHUH VRPH RI WKH KLJKHVW VWDNHV SULYDWH JDPLQJ LQ /DQNKPDU WDNHV SODFH YDULRXV FDUG JDPHV DUH
SOD\HG7KHPLQLPXPEHWLVJROGULONDQGWKHUHLVQROLPLWRQZDJHUV7KHWKLUGIORRULVRSHQE\LQYLWDWLRQRQO\
7KHNLWFKHQKHOSVHUYHVIRRGDQGGULQNDQGSDWURQVFDQREWDLQYDULRXVVSHFLDOLWHPVDQGVHUYLFHVIURP)DWW\
$UHD6WDLUV
7KHVWDLUVOHDGERWKGRZQDQGXSIURPWKLVSRLQW7KHGRRULVORFNHGEXWDOOVWDIIPHPEHUVKDYHDNH\$ORFNHG
GRRUEORFNVWKHODQGLQJOHDGLQJWRWKHIRXUWKIORRUEXWDJDLQDOOVWDIIPHPEHUVKDYHDNH\

7KH)RXUWK)ORRU

7KHIRXUWKIORRUFRQVLVWVRITXDUWHUVIRUWKHVWDII:LWK)DWW\FKDUJLQJIRXUVPHUGXNVDPRQWKIRUUHQWVRPHRIWKH
HPSOR\HHVKDYHIRXQGRWKHUSODFHVWROLYH
$UHD6WDLUV
7KH VWDLUVOHDGERWKXSDQGGRZQ7KHGRRULVORFNHGEXWDOOVWDIIPHPEHUVKDYHDNH\$QRWKHUORFNHGGRRUIRU
ZKLFKWKHVWDIIGRHVQRWKDYHDNH\LVORFDWHGDWWKHWRSRIWKHVWDLUZD\7KHGRRUOHDGVWRWKHILIWKIORRUDQG)DWW\
V
DSDUWPHQW
$UHDV 6WDII$SDUWPHQWV
(DFKRIWKHVHVPDOOURRPVFRQWDLQVDEHGDGUHVVHUDQLJKWVWDQGZLWKDZDVKERZODQGFKDPEHUSRWDQGYDULRXV
SHUVRQDO EHORQJLQJV VXFK DV FORWKHV DQG PLQRU NQLFNNQDFNV $ WKRURXJK VHDUFK LH ORRNLQJ XQGHU WKH VWUDZ
PDWWUHVVHVZLOOUHYHDOQXPHURXVFRFNURDFKHVDQGGVPHUGXNV

)LIWK)ORRU

7KHILIWKIORRULV)DWW\
VDSDUWPHQW2QO\KHKDVDNH\WRWKHGRRU
$UHD6WDLUV
7KHVWDLUZHOOHQGVKHUH7KHUHLVDQLURQUXQJODGGHUOHDGLQJWRDWUDSGRRUWRWKHURRI7KHGRRULVDOZD\VORFNHG
$UHDa)DWW\
V/LYLQJ5RRP
7KLV URRP FRQWDLQV WZR FRPIRUWDEOH FKDLUV D UXJ D VPDOO EXW ZHOOVWRFNHG EDUDQG D WDEOH7KHUH LVQRWKLQJRI
SDUWLFXODUYDOXHKHUH

$UHD2IILFH
)DWW\GRHVKLVERRNNHHSLQJKHUH$VDIHZLWKDFRPSOH[ORFNWRDWKLHI
VFKDQFHVWRRSHQKROGVKLVSHUVRQDO
IRUWXQHJROGULONV2XWVLGHWKHZLQGRZKLGGHQIURPYLHZLVDURSHODGGHUZLWKZKLFK)DWW\FDQHVFDSHZLWK
KLVIRUWXQHWRWKHURRI
$UHD.LWFKHQ
)DWW\
VSHUVRQDONLWFKHQWKHODUGHUKHUHLVIXOO$IWHUDOO)DWW\GRHVOLNHWRHDW$VHFUHWGRRUOHDGVWRWKHRIILFH
$UHD%HGURRP
)DWW\
VEHGURRPFRQWDLQVDEHGDZDUGUREHDQGDVWDQGZLWKDZDVKEDVLQDQGFKDPEHUSRW$ZLQGRZRSHQVWRWKH
VWUHHW

7KH5RRI

7KH URRI LV IODW ZLWK D WKLQ WZRIRRW KLJK OLS VXUURXQGLQJ LW $ UXVWHG DQG GLUW\ UDLQ JXWWHU ZKLFK IUHTXHQWO\
RYHUIORZVUXQVDURXQGWKHEXLOGLQJ

7KH6WDII

)DWW\0DF&RPH
+XPDQ OHYHO
6RFLDO/HYHO
$OLJQPHQW1HXWUDO
)DWW\0DF&RPHLVWKHRZQHUDQGPDQDJHURIWKH/DVW&KDQFH%RUQDQGUDLVHGLQWKH7HQGHUORLQ)DWW\HDUQHGKLV
QLFNQDPHDVDFKLOG+HGLVFRYHUHGTXLFNO\WKDWLIRQHGLGQRWSRVVHVVJUHDWVWUHQJWKVXFFHVVZRXOGFRPHRQO\ZLWK
FOHYHUQHVV +H SDUOD\HG KLV FOHYHUQHVV LQWR KDOI RZQHUVKLS RI WKH /DVW &KDQFH DQG EHFDPH IXOO RZQHU ZKHQ KLV
SDUWQHUGLHGRIQDWXUDOFDXVHVVHYHUDO\HDUVDJR
7KHSRSXODULW\RIWKHHVWDEOLVKPHQWLVGXHWR)DWW\
VRIIHULQJRIWKHEHVWJDPLQJRGGVLQ/DQNKPDUDQGKHLVKRQHVW
WRERRW%XW )DWW\GRHVQRWSRVVHVVDQLQQDWHKRQHVW\5DWKHUKHSRVVHVVHVDIHDUDZRUU\WKDWZLWKWRRPXFKVXFFHVV
ZLOO FRPH WKH YDULRXV JXLOGV DQG WKHLU GHVLUH WR VKDUH LQ KLV SURILWV 7KHUHIRUH )DWW\ WDNHV RQO\ D PRGHVW SURILW
HQRXJK PRQH\ ZLWK ZKLFK KH FDQ OLYHZHOO EXW QRW HQRXJK WR DWWUDFW DWWHQWLRQ +H KDV KRZHYHU VDYHG D SUHWW\
SHQQ\DQGKHKDVKLGGHQLWDZD\IRUKLVROGDJH
)DWW\ZHLJKVDERXWSRXQGVOLWWOHRIZKLFKLVPXVFOH3RVVHVVLQJDZHDNFKLQDQGDKLJKSLWFKHGODXJKKHLVQRW
DSDUWLFXODUO\OLNHDEOHPDQEXWKHLVDEOHWRUDGLDWHDNLQGRIVLQFHULW\WKDWDOORZVSHRSOHWRWUXVWKLPPRUHWKDQWKH\
VKRXOG+HWUHDWVKLVPDOHVWDIIUHODWLYHO\ZHOOEXWKHRIWHQVH[XDOO\KDUDVVHVKLVIHPDOHHPSOR\HHV
2QDW\SLFDOQLJKWDWWKH/DVW&KDQFH)DWW\FDQEHIRXQGJUHHWLQJWKHKLJKUROOHUVE\QDPHDQGHVFRUWLQJWKHPWR
WKHLUWDEOHVRQWKHVHFRQGDQGWKLUGIORRUV+HNHHSVDFORVHH\HRQWKHEDUUHFHLSWVDQGWKHFDVKLHU
VFDJHRQWKHILUVW
IORRU
1RWDJDPEOHUKLPVHOIDQGRIWHQERUHGZLWKWKHDFWLYLWLHV RQWKHILUVWWKUHHIORRUV)DWW\LVRIWHQLQWKHEDVHPHQW
ZDWFKLQJVRPHRIWKHOHVVVDYRU\HYHQWVWDNLQJSODFHWKHUH+HLVSDUWLFXODUO\IRQGRIWKHGZDUIWRVVLQJFRQWHVWV
(VVHQWLDOO\)DWW\LVRXWIRUKLPVHOIDQGKHNQRZVKLVZHDNQHVVHV+LVUHFLSHIRUVXFFHVVLVWRNHHSDORZSURILOHDQG
QRWWRDSSHDUWRRJUHHG\
:LWK D ODUJH QXPEHU RI GUXQNHQ DGYHQWXUHUV SDVVLQJ WKURXJK KLV HVWDEOLVKPHQW GDLO\ )DWW\ LV D JRRG VRXUFH RI
LQIRUPDWLRQDERXWWKHJRLQJVRQLQ/DQNKPDU)RUDVXLWDEOHEULEHUDQJLQJIURPDVLOYHUVPHUGXNWRDQ\QXPEHURI
JROGULONV)DWW\FDQEHSHUVXDGHGWRWDON7KHUHLVDFKDQFHWKDW)DWW\ZLOONQRZDQ\GHVLUHGELWRILQIRUPDWLRQ
%LJ%ODZJO

)LJKWHUWKOHYHO
6RFLDO/HYHO
$OLJQPHQW/DZIXO1HXWUDO
%LJ%ODZJLWKH/DVW&KDQFHERXQFHUOLNHKLVERVV)DWW\GHVHUYHVKLVQDPH$WQHDUO\DQGDKDOIIHHWWDOODQGRYHU
SRXQGVRIVROLGPXVFOH%LJ%ODZJLLVELJ(YHQKLVPXVFOHVKDYHPXVFOHVXQIRUWXQDWHO\KHDOVRKDVPXVFOHV
EHWZHHQKLVHDUV

+LVVKLQ\EDOGKHDGLVGLYLGHGE\DORQJKRUULGVFDUZKLFKVWDUWVDWKLVVFDOSUXQVWKURXJKWKHVRFNHWZKHUHKLVOHIW
H\HXVHGWREHDQGFRQWLQXHVGRZQWKHOHQJWKRIKLVQHFN+HGRHVQRWWDONPXFKEXWKHRFFDVLRQDOO\JUXQWV
6WURQJFOXPV\DQGVWXSLG'DQG,%LJ%ODZJLLVWKHUHWRNHHSWKHFXVWRPHUVKRQHVWDQGZHOOEHKDYHG
2Q KLV RZQ LQLWLDWLYH KH ZLOO DWWDFN DQ\RQH FDXVLQJ D GLVWXUEDQFH DQG KH ZLOO DOVR DWWDFN DQ\RQH WKDW )DWW\
FRPPDQGV+LVILVWGRHVDVPXFKGDPDJHDVDVKRUWVZRUG'PJ
(ODQD
7KLHIQGOHYHO

6RFLDO/HYHO
$OLJQPHQW1HXWUDO
(ODQDLVRQHRIWKHPRUHSRSXODUFURXSLHUVDWWKH/DVW&KDQFH<RXQJIULHQGO\DQGTXLWHSUHWW\&K&RPVKH
FDVXDOO\IOLUWVZLWKDQ\RQHZKRJDPEOHVDWKHUWDEOH6KHLVSDUWLFXODUO\DPDWRU\ZLWKEHWWRUVZKRDUHREYLRXVO\ULFK
DQGQRWQDWLYHWRWKH7HQGHUORLQ(ODQDZRXOGORYHWRPDUU\VRPHRQHZLWKPRQH\RUDWWKHYHU\OHDVWDUUDQJHWR
KDYHVRPHRILWUXERIIRQKHU
WKH OLIH RI D IUHHODQFH WKLHI LV KDUG DQG GDQJHURXV DQG WKH FRQVHTXHQFHV DUH RIWHQ H[WUHPH 6R (ODQD KDV IRXQG
VRPHWKLQJWKDWSDVVHVIRUKRQHVWZRUN6KHUHOXFWDQWO\SXWVXSZLWK)DWW\
VJURSLQJKDQGVDQGVRIDUVKHKDVEHHQ
QLPEOHHQRXJKWRVXUYLYH+HUSRSXODULW\ZLWKWKHFXVWRPHUVDQGKHUDELOLW\WRHDUQWLSVRIZKLFK)DWW\WDNHVKLV
FXWNHHSV)DWW\IURPSXVKLQJKHUWRRIDU7KHGDJJHUVKHNHHSVVWUDSSHGWRKHUWKLJKDOVRNHHSV)DWW\RQJXDUG
,IWKH3&VFRPHWRWKH/DVW&KDQFHRIWHQDQGIODVKPRQH\ZKHQWKH\DUH WKHUH(ODQDZLOOZHOFRPHWKHPDWKHU
WDEOHDQGGRKHUEHVWWRJHWWRNQRZWKHP$QLFHUHODWLRQVKLSPD\GHYHORSDVORQJDVWKHFDVKLVWKHUH
7KH6WDII
+XPDQOHYHO
6RFLDO/HYHO
$OLJQPHQW1HXWUDO
)DWW\HPSOR\VILYHFURXSLHUVVRPHPDOHDQGVRPHIHPDOHWKUHHFDVKLHUVRQHSHUVKLIWDQGVHUYDQWVNLWFKHQ
VWDIIZDLWHUVFKDUZRPHQHWF8VHWKH5DQGRP13&*HQHUDWRU6RXUFHERRNSDJHWRFUHDWHWKHVWDIIPHPEHUV
DVQHHGHG0RVWRIWKHVWDIIOLYHLQDSDUWPHQWVRQWKHIRXUWKIORRURIWKLVEXLOGLQJ)DWW\FKDUJHVWKHPPRVWRIWKHLU
PHDJHUZDJHVDVUHQW(PSOR\HHVFRPHDQG JRDQGWKH3&VZLOOSUREDEO\QHYHUPHHWWKHVDPHSHUVRQWZLFH

(QFRXQWHU.H\

7KHIROORZLQJHQFRXQWHUVFRYHUWKHLPSRUWDQWDVSHFWVRIWKLVDGYHQWXUHVFHQDULR%R[HGWH[WVKRXOGEHUHDGGLUHFWO\
WRWKHSOD\HUV
:LWKIHZVDQHSHRSOHRUFUHDWXUHVRXWRQWKHVWUHHWVRQWKLVQLJKWRIWKHJRGVWKHUHDUHQR5DQGRP(QFRXQWHUVLQ
WKLVDGYHQWXUH

6WXFN,QVLGHRI/DQNKPDUZLWKWKRVH*DPEOLQJ%OXHV$JDLQ
 6DYH7KH/DVW&KDQFH)RU0H
5HDGWKHIROORZLQJDORXG

,WLVRQWKH'D\RIWKH%DWLQWKH0RQWKRIWKH*RDW WKDWWKHVWUDQJHIHVWLYDONQRZQDVWKH1LJKWRI)HDURFFXUV
/HJHQGKDVLWWKDWWKHYHU\JRGVRI/DQNKPDUURDPWKHFLW\WRVHHLIWKHFLW L]HQVKDYHNHSWWKHFLW\LQDFFRUGZLWK
WKHLUZLVKHV
2Q WKH GD\ RI WKH 1LJKW RI )HDU /DQNKPDUV SUHSDUH JLIWV IRU WK HLU WHPSOH 7KH\ ZHDU RQO\ EODFN WRJDVDQG DOO
FRQYHUVDWLRQVDUHKHOGLQZKLVSHU$WQLJKWDOOWKHSHRSOHRIWKHFLW\VWD\EHKLQGORFNHGGRRUVZLWKZHDSRQVUHDG\
1RWHYHQWKLHYHVYHQWXUHZLOO LQJO\LQWRWKLVQLJKW
,WLVVDLGWKDWRQWKH1LJKWRI)HDU WKHJRGVURDPWKHFLW\VWUHHWVDQGDQ\ RQHZKRVSLHVXSRQWKHPGLHVKRUULEO\
%XWERUHGRPLVVRPHWLPHVZRUVHWKDQGHDWKDQGWKHUHDUHWLPHVZKHQVRPHIHHODQXUJHWRUHYHODQGJDPEOHWKH
HYLOQLJKWDZD\

7KH/DVW&KDQFHQHYHUFORVHVQRWHYHQRQWKH1LJKWRI)HDUVHH6RXUFHERRNSDJHEXWPRVWSDWURQVDUULYHDW

GXVNDQGSODQRQVWD\LQJXQWLOPRUQLQJ)DWW\ZLOOJLYHDUHJXODUFXVWRPHUDEHGDQGEUHDNIDVWHYHQLIKHJDPEOHV
DZD\DOOKLVPRQH\
7KHDGYHQWXUHFDQVWDUWDV WKH 3&V HQWHUWKH /DVW&KDQFH RUDWWKHLU KRPH LQ/DQNKPDU ,WLVDGYLVDEOHWKDWWKH\
DUULYH DW WKH /DVW &KDQFH EHIRUH GDUN EXW LI WKH\ IDLO WR GR VR WKH\ FDQ UHDFK WKH /DVW &KDQFH ZLWKRXW LQFLGHQW
DQ\ZD\'0
VGLVFUHWLRQ
,IWKH3&VKDYHYLVLWHGWKH/DVW&KDQFHEHIRUHWKH\DUHJUHHWHGDVROGIULHQGVE\)DWW\+HUHPHPEHUVZKDWJDPHV
WKH\SOD\HGVKRZVWKHPWRDWDEOHRUWRWKHEDUDQGVHWVXSDURXQGRIGULQNVRQWKHKRXVH7KH\PLJKWHQGXSLQ
WKHEDVHPHQWRURQWKHILUVWVHFRQGRUWKLUGIORRUVGHSHQGLQJRQWKHLUSOHDVXUH
,IWKLVLVWKHLUILUVWYLVLWWRWKH/DVW&KDQFH)DWW\JUHHWVWKHPHIIXVLYHO\LQKLVKLJKSLWFKHGYRLFH:HOFRPHWRP\

XPEOHHVWDEOLVKPHQWKHVD\V,IWKH3&VVKRZDORWRIFDVKZKHQWKH\EX\WKHLUILUVWURXQGRIGULQNV)DWW\VXJJHVWV
WKDWIRUDVPDOO IHHPRUHLQWHUHVWLQJGLYHUVLRQVFDQEHIRXQGRQWKHRWKHUIORRUVRIKLVHVWDEOLVKPHQW,IQRWWKH3&V
JDPEOHRQWKHILUVWIORRU
,IWKH3&VDVNDERXWWKHRWKHUIORRUV)DWW\RUZKDWHYHUVHUYDQWERXQFHURUFURXSLHUWKH\DVNZDLWVH[SHFWDQWO\IRU
DWLSRUEULEHWHOOLQJWKHSDUW\DERXWWKHDYDLODEOHGLYHUVLRQVRIWKHHVWDEOLVKPHQWDIWHULWLVSDLG7KHQRUPDOWLSIRU
JHWWLQJLQWRWKHEDVHPHQWLVVPHUGXNVIRUJHWWLQJRQWRWKHVHFRQGIORRUULONDQGIRUJHWWLQJRQWRWKHWKLUGIORRU
ULONV
7RZDUPXSIRUWKLVDGYHQWXUHWKH3&VVKRXOGJDPEOHDZKLOH7KH'0VKRXOGWDONDERXWKRZWKHIRJLVUROOLQJLQ
WKHVWUHHWVDUHJHWWLQJGDUNDQGKRZGHVHUWHGDQGP\VWHULRXVHYHU\WKLQJVHHPV7KH'0VKRXOGZRUNDWEXLOGLQJD
PRRGRIVXVSHQVH
:KHQWKHSURSHU DWPRVSKHUHLVEXLOWDQG\RXUSOD\HUVDUHIXOO\LQWRFKDUDFWHUUXQHYHQW
 7KH/DG\,Q5HG
7KH 3&VPXVWEHRQWKHILUVWIORRURIWKH/DVW&KDQFHIRUWKLVHYHQW,IWKH\KDYHEHHQJDPEOLQJHOVHZKHUHKDYH
WKHPFRPHDW)DWW\
VUHTXHVWWRWKHILUVWIORRUIRUDGULQN:KHQWKH3&VDUULYHUHDGWKHIROORZLQJ
7KHGRRUIOLHVRSHQZLWKDORXGEDQJVWDUWOLQJHYHU\RQH7KHWHQGULOVRIQLJKWIRJFUHHSLQWRWKHURRPOLNHILQJHUVRI
GDUNQHVVDQGVXUURXQGDKRRGHGILJ XUHFORDNHGLQEODFNVWDQGLQJLQWKHGRRUZD \
$VRIWZKLWHKDQGUHDFKHVXSWRWKHFRZORIWKHORQJEODFNUREHDQGSXOOVLWDZD\UHYHDOLQJEODFNWUHVVHVIUDPLQJD
ORYHO\SDOHZKLWHIDFH,DPLQGHVSHU DWHQHHGWKHILJXUHVD\VLQDVRIWPHORGLFDOO\YRLFH:LOODQ\RI\RXKHOS
PH"
0\QDPHLV0\UULDWKHZRPDQVD\VUHPRYLQJKHUORQJEODFNUREHWRUHYHDODQHOHJDQWORZ FXWUHGJRZQ7KDQN
\RXIRUOHWWLQJPHLQVLGH,KDYHEHHQFRQVXPHGZLWKIHDUDQGQRZ,PXVWWKURZP\VHOIRQ\RXUPHUF\IRUDLGDQG
VXFFRU0\UULDUXEVKHUEORRG VKRWH\HV 6KHORRNVDVLIVKHKDVEHHQFU\LQJ
<RXVHHVKHFRQWLQXHV,ZDVEHLQJGULYHQKRPHWREHZLWKP\IDPLO\E\DEXVLQHVVDVVRFLDWHRIP\EURWK HU
V
ZKHQKHPDGHLPSURSHUDGYDQFHV:KHQ,SURWHVWHGDQGUHIXVHGKLP/XJKSXVKHGPHIURPKLVFDUULDJHLQWR WKH
VWUHHWV,KDYHZDQ GHUHGLQWKLVQHLJKERUKRRGIRUVHYHUDOKRXUVDQGZKHQ,NQRFNHGRQGRRUVQRRQHZRXOGDGPLW
PH)RUDZKLOH,FRZ HUHGLQDQDOOH\ZD\EXWWKHQ,QRWLFHGDOLJKWLQ\RXUZLQGRZ
%HJLQQLQJ WR ORVH KHU FRPSRVXUH VKH SOHDGV 3OHD VH SOHDVH SOHDVH KHOS PH UHWXUQWRP\IDWKHU
VKRXVHLQWKH
&DVK'LVWULFW,DPFHUWDLQKHZLOOSD\DJUHDWUHZDUGLI,DPUHWXUQHGVDIHO\WKHUH%XW,PXVWDUULYHKRPHEHIRUH
PLGQLJKWRUKHZLOOEHIUDXJKWZLWKZRUU\3OHDVH,EHJRI\RXWDNHPHKRPH 

,IJRRGDOLJQHGFKDUDFWHUVDUHUHOXFWDQWWRKHOSWKH'0VKRXOGPDNHFOHDUWKHLUQDWXUDOIHHOLQJVRIZDQWLQJWRDLG
D SHUVRQ LQ GDQJHU ,I WKH\ VWLOO UHIXVH WR KHOS D VOLJKW DOLJQPHQW FKDQJH PD\ EHFRPH GHVLUDEOH 7UXH QHXWUDO
FKDRWLFDQGHYLOFKDUDFWHUVVKRXOGEHaPRWLYDWHGE\WKHWKRXJKWRIUHZDUG,IWKH\ZDQWVSHFLILFV0\UULDSURPLVHV
WKDWKHUIDWKHUZLOOSD\JROGULONVIRUKHUVDIHUHWXUQ,IQHFHVVDU\VKHXSVWKHUHZDUGRIIHUWRJHWWKH3&VWR
DJUHH
,IWKH3&VVWLOOUHIXVHWRHVFRUW 0\UULDKRPHWZRSDUWLFXODUO\XJO\DQGEUXWLVKSDWURQVRIWKH/DVW&KDQFHRIIHUWR
WDNH YHU\ JRRG FDUH RI KHU DQG VHH KHU VDIHO\ WR KHU IDWKHU
V KRXVH ,I WKLV IDLOV WR PRYH WKH 3&V WR DFWLRQ)DWW\
XUJHQWO\ZKLVSHUV
<RXFDQ
WOHW*URRJKDQG.QDUTKDYH KHU7KRVHER\VZLOOOHDYHKHUGHDGLQDQDOOH\ZD\IRUVXUH\RXZRQ
WJHW
WKHUHZDUGDQG,
OOFDWFKWURXEOHLIKHUIDWKHUHYHUJHWVZRUGVKHZDVLQKHUHWRQLJKW7KLQNRIWKHPRQH\ER\V
WKLQNRIWKHPRQH\

13&&DSVXOH

0\UULD
+XPDQ OHYHO
6RFLDO /HYHO
$OLJQPHQW/DZIXO*RRG
0\UULD
D6WRU\
0\UULD LV WKH GDXJKWHU RI $UUDYLVD SURPLQHQW PHPEHU RI WKH 0RQH\OHQGHU
V *XLOG 6KH KDV DQ ROGHU EURWKHU
'DQQDOZKRLVIROORZLQJLQKHUIDWKHU
VIRRWVWHSV+HUPRWKHUGLHGLQFKLOGELUWK
+HUKRPHLVLQWKH&DVK'LVWULFWRQ*ROG6WUHHWEHWZHHQ&DVKDQG%DUWHU/XJKDEXVLQHVVDVVRFLDWHRI'DQQDO
VLV
DQRLO\FKDUDFWHUZKR0\UULDWKLQNVLVWU\LQJWRPDUU\KHUWRJHWKLVKDQGVRQWKHIDPLO\IRUWXQHQRWWRPHQWLRQ
RWKHUWKLQJV
6KHKDVOHGDVKHOWHUHGDQGSDPSHUHGOLIHDQGWKLVLVWKHILUVWWLPHDQ\RQHKDVHYHUGRQHDQ\WKLQJWRKXUWKHU6KHLV
H[FHSWLRQDOO\ WUXVWLQJ DQG EHFDXVH VKH LV VR LQQRFHQW VKH PD\ WDONORXGO\DWLQRSSRUWXQHPRPHQWV RU UHYHDOKHU
EDFNJURXQGZKHQLWLVQRWLQKHUEHVWLQWHUHVWVWRGRVR2QFHKRZHYHUVRPHRQHKDVSURPLVHGWRDLGKHUVKHEHJLQV
WRWKLQNRIKHUSUHGLFDPHQWDVDQDGYHQWXUH

'0 1RWH $V \RXZLOO VKRUWO\VHHWKHUH LVD OLWWOH ELWPRUH WR0\UULD WKDQ PHHWVWKH H\H%XWXQWLOWKHQSOD\KHU

DFFRUGLQJWRWKHDERYHGHVFULSWLRQ

 ,QWRWKH1LJKW
7KLVHYHQWWDNHVSODFHZKHQWKHFKDUDFWHUVDJUHHWRHVFRUW0\UULDEDFNWRKHUKRPHLQWKH&DVK'LVWULFW0DS,;
DUHD0
$V\RXJUDE\RXUFORDNVDQGSUHSDUHWRHVFRUW0\UULDRXWLQWRWKHIRJULGGHQQLJKW\RXQRWLFHYDULRXVSDWURQVRIWKH
/DVW&KDQFHORRNDWHDFKRWKHUVROHPQO\VKDNLQJWKHLUKHDGV3HRSOHZKRDUHDERXWRQWKH1LJKWRI)HDUIUHTXHQWO\
GRQRWUHWXUQRQHHOGHUSDWURQVD\V
%XW0\UULDORRNVDW\RXZLWKKHUEULJKWWUXVWLQJH\HVDQGZLWKWKHWKRXJKWRISDWHUQDOUHZDUGILUPO\LQ\RXUPLQGV
\RXVWHSRXWLQWRWKHIRJ$VWKHGRRURIWKH/DVW&KDQFHFORVHVEHKLQG\RXWKHUHLVQRWKLQJEXWWKHQLJKWDLUDQGWKH
VRXQGRI\RXUERRWVRQWKHFREEOHVWRQHV
0RYHPHQW $ QRUPDO $' ' JDPH FKDUDFWHU FDQ PRYH  LQFKHV LQ D VLQJOH URXQG ,Q RXWGRRU VFDOH WKLV
FRQYHUWV WR \DUGV7KLV PRYHPHQW UDWH LV DSSURSULDWH IRU FRPEDW RU IRU VKRUW SHULRGV RI WLPH EXW LV KDUG WR
VXVWDLQ
,WLVDOVRWUXHWKDWFKDUDFWHUVZKRDUHWU\LQJWREHFDXWLRXVDQGDOHUWPRYHVORZHUDQGOHYHOKXPDQVOLNH0\UULDGR
QRW SRVVHVV ODUJH TXDQWLWLHV RI VWDPLQD RU VSHHG 6R IRU WKH SXUSRVHV RI WKLV DGYHQWXUH DVVXPH WKDW WKH 3&V FDQ
PRYHLQFKHVRQWKHODUJHPDSRI/DQNKPDULQVHUWHGLQWKH6RXUFHERRNLQDJDPHWXUQPLQXWHVZKHQPRY
LQJQRUPDOO\ DQGFDXWLRXVO\6SULQWLQJRUILJKWLQJFKDUDFWHUVDUHHQWLWOHGWRWKHLUIXOOQRUPDOLQFKHV\DUGV
PRYHPHQWUDWH
9LVLELOLW\
9LVLELOLW\LQWKHGDUNIRJLVIHHWZLWKRXWDODQWHUQDQGIHHWZLWKLOOXPLQDWLRQ%HFDXVHRIWKH
IRJ WKH UDQJHRI LQIUDYLVLRQ LV VWLOO RQO\  IHHW 0DJLFDO GHYLFHV RU VSHOOV VXFKDV DJHPRI VHHLQJ UHWDLQWKHLU
QRUPDOSURSHUWLHV
,IWKHFKDUDFWHUVDUHIDPLOLDUZLWKWKHFLW\RI/DQNKPDUDOORZWKHPWRXVHWKHIXOOVL]HPDSWRWUDFHWKHLUURXWH,I
QRW0\UULDWHOOVWKHPWKDWWKH\PXVWJRGRZQ&DUWHUWR&DVKRYHUWR*ROGDQGWKHQGRZQ*ROGWRKHUKRPH
7KH$PEXVKHUV
7KLVHYHQWWDNHVSODFHDIWHUWKHFKDUDFWHUVKDYHWUDYHOHGDERXWDTXDUWHURIWKHGLVWDQFHWR0\UULD
VKRXVH,WFDQWDNH
SODFHRQZKDWHYHUVWUHHWWKHFKDUDFWHUVDUHWUDYHOLQJ
7KH3&VDUHDERXWWREHDPEXVKHGE\DSDUW\RIWKXJVRIWKH6OD\HUV
%URWKHUKRRG%HIRUHWKH6OD\HUVDWWDFNWKH
'0VKRXOGUROOIRUVXUSULVHWRVHHLIWKH3&VKHDUDVWUDQJHVRXQGRUVHHDVKDSHPRYLQJLQWKHIRJ%HFDXVHRIWKH
6OD\HUV
FRQFHDOPHQWWKH\UHFHLYHVXUSULVHRQDUROORIRQDG
7ZR6OD\HUVDWWDFN HDFKRI WKH 3&V DQGWKH UHPDLQLQJ PHPEHUV RIWKHDPEXVK WU\ WRJUDE0\UULD DQGVSLULWKHU
DZD\0\UULDVFUHDPVDQGVWUXJJOHVEXWLVLQHIIHFWXDODJDLQVWKHUDWWDFNHUV7ZRDWWDFNHUVSLFNKHUXSDQGFDUU\KHU
DZD\7KHLUGHVWLQDWLRQLVWKH7HPSOHRIWKH*RGVRI/DQNKPDURQWKHFRUQHURI1XQ6WUHHWDQGWKH6WUHHWRIWKH
*RGV6KHFRQWLQXHVWRVFUHDPHYHQLIWDNHQRXWRIVLJKWRIWKH3&V7UDFNLQJKHULVWKHUHIRUHDXWRPDWLF

,I0\UULDKDVEHHQNLGQDSSHGWKHUHPDLQLQJ6OD\HUVWU\WRNLOOWKH3&V2QFHKDOIRUPRUHRIWKHUHPDLQLQJWKXJV
KDYHEHHQNLOOHGWKHUHVWUXQDZD\VHH7KXJVRQWKH0RQVWHU6WDWLVWLFV&KDUW,IDQ\RIWKH6OD\HUVDUHFDSWXUHG
DOLYHDQGLQWHUURJDWHGWKH\VD\QRWKLQJDERXWWKHLUPLVVLRQ2QO\PDJLFDOSHUVXDVLRQFDQORRVHQWKHLUWRQJXHVDQG
HYHQWKHQWKH\FDQRQO\PDQDJHWRVD\WKDWWKH\ZHUHRUGHUHGWRWDNH0\UULDWRWKHWHPSOH7KH\GRQRWNQRZZKR
JDYHWKHRUGHUVRUZK\
,IWKH3&VGHFLGHWRYLVLWWKH6OD\HUV%URWKHUKRRGEXLOGLQJWRILQGRXWZKRJDYHWKHRUGHUWKH\ZLOOEHWROGQRWKLQJ
,I WKH\ EULQJ 0\UULD DORQJ DQRWKHU JURXS RI WKXJV ZLOO WU\ WR FRPSOHWH WKH RULJLQDO PLVVLRQ ,I WKH 3&V DUH
EHOOLJHUHQWWKH6OD\HUVPD\WDNHDSHUVRQDOLQWHUHVWLQUXEELQJWKHSDUW\RXW
7KHFKDUDFWHUVPD\ZRQGHUKRZWKHWKXJVNQHZ0\UULDZRXOGEHFRPLQJE\RUZK\WKHWKXJVZHUHVRLQWHUHVWHGLQ
NLGQDSSLQJ KHU 7KH\ PD\ EH FXULRXV DV WRZK\ WKH 7HPSOH RI WKH *RGV RI/DQNKPDUZDVLQYROYHG ,IWKH\DVN
0\UULDKDVDQHZVWRU\,IWKH\GRQRWWKH'0VKRXOGQRWYROXQWHHUDQ\LQIRUPDWLRQ
0\UULD
V1HZ6WRU\

:HOOXK,JXHVV,ZDVQ
WFRPSOHWHO\IUDQNZLWK\RXVKHVD\VEXW,ZDVQ
WVXUH,FRXOGWUXVW\RX'DQQDOLVQ
W
UHDOO\P\EURWKHUKH
VP\ ORYHUP\IDWKHU
VPRQH\OHQGLQJKDVQ
WEHHQJRLQJYHU\ZHOODQG'DQQDOZDVJRLQJWR
KHOSKLP<RXVHH'DQQDOZRUNHGRXWDGHDOZLWK/XJKWKDWLQYROYHGWKLVULFKVWXSLGQREOHZRPDQWKH&RXQWHVV
/HVYDDQGWKHVHDZIXOO\H[SHQVLYHSHDUOVDQG/XJKWKHZU HWFKWULHGWRGRXEOH FURVV'DQQDO
:KHQ,WULHGWRPDNHSHDFHZLWK/XJKDQGWULHGWRJHWKLPWRKRQRUKLVFRPPLWPHQWZHOOILUVWKHZDQWHGWRKDYH
KLVZD\ZLWKPHDQGWKHQZKHQ,WROGKLPWKDW,ZDVIDLWKIXOWR'DQQDOKHWKUHZPHRXWRIKLVFDUULDJH DQGWKDW
V
ZKHUH,PHW\RX
0\UULDZKLOHWHOOLQJKHUVWRU\KDVEHHQDYRLGLQJH\HFRQWDFWZLWKWKHFKDUDFWHUV6KHORRNVXSKHUHWRPDNHVXUH
WKH\DUHIROORZLQJKHU6KHWKHQUDPEOHVRQ
$QG/XJKZHOOKH
VLQWLJKWZLWKVRPH*XLOGPHPEHUVWKDWVLPSO\ KDWHP\IDWKHUDQG,
PSUHWW\VXUHWKDW
VZK\
WKRVH6OD\HUV%URWKHUKRRGSHRSOHZHUHRXWORRNLQJIRUPHEHFDXVHLIWKH\FRXOGNLGQDSPHDQGKROGPHIRUUDQVRP
WKHQ'DQQDOZRXOGKDYHWROHW/XJKJHWDZD\ZLWKVWHDOLQJWKHSHDUOVRI&RXQWHVV/HVYD7KHQP \IDWKHUZRXOGEH
WKURZQRXWRIWKH*XLOGRKLW
VDOOVLPSO\WRRDZIXO6R\RXVHH\RXVLPSO\KDYHWRJHWPHKRPHWR'DQQDOE\
PLGQLJKWRUHOVHLW
VDOOJRLQJWRFROODSVHDQGP\IDWKHUZLOOEHUXLQHG$QG'DQQDO
VDZIXOO\ULFK\RXNQRZDQGLI
\RX MXVWJHWPHKRPHVDIH, NQRZKH
OOSD\ \RXDZKROHORWRIPRQH\,MXVWNQRZLW3OHDVHRKSOHDVHWDNHPH
KRPH

7KH 3&VKDYHWZRFKRLFHV7KH\FDQWDNH0\UULDKRPHRUDEDQGRQKHURQWKH VWUHHW,IWKH\WU\ WROHDYHKHUVKH

IROORZV WKHP SOHDGLQJ IRUKHOS DQG JUDGXDOO\ LQFUHDVLQJ WKH SURPLVHG UHZDUG PRQH\ XQWLO WKH FKDUDFWHUV ILQDOO\
DJUHHWRWDNHKHUKRPH,IWKHFKDUDFWHUVDUHQRWPRYHGE\WKHVHSOHDV0\UULD
VQRLVHFDQDWWKH'0
VRSWLRQDWWUDFW
DGGLWLRQDOPHPEHUVRIWKH6OD\HUV%URWKHUKRRG
0\UULDGRHVQRWNQRZYHU\PDQ\GHWDLOVDERXW'DQQDO
VSURSRVHGMHZHOKHLVWQRUGRHVVKHNQRZZKHUH&RXQWHVV
/HVYDOLYHV,QIDFW0\UULDGRHVQRWVHHPWRNQRZYHU\PXFKDWDOO
%DFN)URP7KH6KDGRZV$JDLQ
7KLVHYHQWWDNHVSODFHZKHQWKHFKDUDFWHUVUHDFKHLWKHUWKHLQWHUVHFWLRQRI&DVKDQG*ROGRU%DUWHUDQG*ROGDQG
DUHWXUQLQJRQWR*ROG6WUHHWWRZDUG0\UULD
VKRXVH
7KHGDUN/DQNKPDUWIRJLVEURNHQE\WKHGLPIOLFNHURIWRUFKHVDV\RXHQWHUWKH&DVK'LVWULFW6RRQ\RXZLOOKDYH
UHWXUQHG0\UULDWRKHU IDWKHUDQG\RXFDQDOPRVWIHHOWKHKHDY\JROGULONVRIWKHUHZDUGFODQNLQJLQ\RXUPRQH\
SXUVH7KH1LJKWRI)HDUKDVEHHQIHDUVRPHEXWZLWKWKHDSSURDFKRIPLGQLJKWQLJKWKHZRUVWLVVXUHO\RYHURULV
LW"
+DYHHDFKSOD\HUFKDUDFWHUUROOG,IWKHUHVXOWLVHTXDOWRRUOHVVWKDQKDOIWKHFKDUDFWHU
V,QWHOOLJHQFHURXQGLQJ
XSWKHFKDUDFWHUVHHVRUVHQVHVDGDUNVKDSHDERXWIHHWDZD\PRYLQJWRZDUGWKHSDUW\,IQRFKDUDFWHUQRWLFHVLW
0\UULDVFUHDPVDQGSRLQWVZKHQLWLVIHHWDZD\
7KLVVWUDQJHGDUNVKDSHLVDQ(DWHURI6RXOV6HHWKH1HZ0RQVWHUV6HFWLRQDWWKHHQGRIWKLVERRNOHW
7KH(DWHURI6RXOVDGYDQFHVVORZO\DQGPHQDFLQJO\,WLVKHDGLQJIRU0\UULDEXWWKLVPD\QRWEHLQVWDQWO\DSSDUHQW
ZLWK0\UULDVWDQGLQJGLUHFWO\EHKLQGRQHRIWKHFKDUDFWHUV,IWKH3&VKDYHPDJLFZHDSRQVOHVVXVXDOLQWKHODQGRI

1HKZRQWKDQLQPRVW$' 'JDPHZRUOGV0\UULDZDUQVWKDWWKHFUHDWXUHGUDLQVZLVGRPDQGUHFRPPHQGVWKDW

WKH\IOHH,IRQWKHRWKHUKDQGWKH\ DUHQRWFDUU\LQJPDJLF ZHDSRQV0\UULDVKRXWVLQDFRPPDQGLQJWRQH7KH
ZHDSRQV\RXKDYHFDQ
WKDUPWKHFUHDWXUH+XUU\IROORZPHLW
V\RXURQO\KRSHRINLOOLQJLWEHIRUHLWGUDLQVDOORIXV
GU\
%HFDXVHRILWVVORZPRYHPHQWUDWHWKHSDUW\FDQHDVLO\RXWUXQWKH(DWHURI6RXOV0\UULDGHPRQVWUDWLQJOHDGHUVKLS
TXDOLWLHVDQGFRPPRQVHQVHWKDWWKHDGYHQWXUHUVKDYHQRWKHUHWRIRUHVHHQOHDGVWKHZD\WRKHUPDQVLRQ

+RXVHRIWKH5LVLQJ6XQ

6HH0DS9,,,DQGDUHD0RQ0DS,;
0\UULD
VUHVLGHQFHLVDODUJHWRZQKRXVHRQDQH[SHQVLYHVWUHHW7RUFKHVEXUQRQERWKVLGHVRIWKHIURQWGRRUEXWQR
OLJKWVFDQEHVHHQLQWKHZLQGRZV7KHGRRULVXQORFNHGDQGWKHEXLOGLQJDSSHDUVHPSW\
7KHIXUQLVKLQJVDUHGXVW\DQGWKHIXUQLWXUHLVFRYHUHGZLWKVKHHWV
'01RWH7KH(QFRXQWHU.H\IROORZVWKHGHVFULSWLRQRIWKH5RRP.H\EHORZ

5RRP.H\

*HQHUDO2YHUYLHZ
6FRQFHV ZLWKXQOLWWRUFKHVDSSHDULQ HDFKRI WKH URRPVDQG FDQ SURYLGH IXOOLOOXPLQDWLRQLIOLW7KH ZLQGRZVDUH
YHLOHGZLWKWKLQODFHFXUWDLQVWKDWDUHSXOOHGDQGWLHGWRHDFKVLGH
$UHD)R\HU
7KH IURQW GRRU RSHQV RQWR D ZLGH IR\HU DQG DW WKH HQG RI WKH IR\HU LV DQ RUQDWH DVFHQGLQJ VWDLUFDVH DUHD 
,QWULFDWHO\FDUYHGGRXEOHVOLGLQJGRRUVRQWKHULJKWOHDGWRWKHOLEUDU\DUHD7ZRGRRUVRQHOHDGLQJWRWKHVLWWLQJ
URRPDUHDWKHRWKHUWRWKHNLWFKHQDUHDDUHORFDWHGRQWKHOHIWZDOO
$UHD6WDLUFDVH
/HDGLQJWRWKHVHFRQGDQGWKLUGIORRUVWKHVWDLUFDVHKDVDEHDXWLIXOO\FDUYHGRDNEDQLVWHU/DQGLQJVDSSHDURQDQG
KDOIZD\EHWZHHQHDFKIORRU
$UHD6LWWLQJ5RRP
7KHVLWWLQJURRPFRQWDLQVIRXURYHUVWXIIHGFKDLUVDQGDFRIIHHWDEOH7KHZDOOVDUHFRYHUHGZLWKDGXVWFRYHUHGDQG
URWWHGVLONEURFDGHZDOOSDSHU$QRSHUDWLYHEXWHPSW\ILUHSODFHVLWVDORQJWKHZHVWHUQZDOO
$UHD.LWFKHQ
7KHNLWFKHQFRQWDLQVDVLQNZLWKDQRSHUDWLQJZDWHUSXPSHPSW\FDELQHWVDQGSDQWULHVDQGRWKHUH[SHFWHGNLWFKHQ

IDFLOLWLHV$URWWHGZRRGHQVWDLUFDVHOHDGVWRWKHEDVHPHQW7KHUHLVDFKDQFHWKDWZKHQVRPHRQHVWHSVRQWRWKH
VWDLUVWKH\ZLOOFROODSVHFDXVLQJGSRLQWVRIGDPDJH
$UHD/LEUDU\
:LWK WKH H[FHSWLRQ RI ZLQGRZ VSDFH WKH OLEUDU\ ZDOOV DUH FRYHUHG IURP IORRU WR FHLOLQJ ZLWK ERRNFDVHV 7KH
YROXPHV DUH DOO OHDWKHUERXQG DQG ORRN H[SHQVLYH $ UDUH ERRN GHDOHU ZRXOG SD\  ULONV IRU WKH 
YROXPHVLQWKLVURRP
,ID3&VSHQGVRQHIXOOWXUQH[DPLQLQJWKHERRNVKHILQGVDIHZWLWOHVRILQWHUHVW
7KH9DPSLUHRI/DQNKPDU/HJHQGRU)DQF\"&UHDWXUHVRIWKH1LJKW6XPPRQ LQJDQG'HPRQRORJ\DQG7DOHVRI
WKH*RGVRI/DQNKPDU 7KHVHZRXOGEULQJULONVDSLHFHIURPDGHDOHULQPDJLFDODQGRFFXOWZRUNV
0RUHLPSRUWDQWO\LID3&VSHQGVWZRIXOOWXUQVEURZVLQJWKURXJKWKHVHERRNVKHZLOOOHDUQDERXWWKH/DQNKPDUWYDPSLUHDQG
WKH(DWHURI6RXOVDQGKRZWKHVHFUHDWXUHVFDQEHGHVWUR\HG
2QHURZRIERRNVLVIDNHDQGZKHQSXOOHGDVLGHUHYHDOVDVDIH7KHVDIHFRQWDLQVDGDJJHUDOHDWKHUER[ILOOHGZLWKH[SHQVLYH
MHZHOU\ZRUWKDSSUR[LPDWHO\JROGULONVDQGDOHDWKHUVFUROOFDVH,QWKHFDVHLVDSURWHFWLRQIURPHYLOVFUROODQGDVHFRQG
VFUROOFRQWDLQLQJDOLVWRIZD\VWRGHVWUR\DYDPSLUH
3HUKDSVWKHOLEUDU\
VVLQJOHPRVWVWULNLQJIHDWXUHLVDIXOOOHQJWKSRUWUDLWRI0\UULDGUHVVHGLQFORWKHVRI\HDUVDJR
$UHD%HGURRP
7KHEHGURRPFRQWDLQVDODUJHIRXUSRVWHUEHGDIUHHVWDQGLQJILUHSODFHDQGVHYHUDOFKDLUVDOOFRYHUHGLQZKLWHVKHHWVDQGGXVW

$UHD%HGURRP
/DFNLQJ D ILUHSODFH WKLV EHGURRP LV VLPLODU WR WKH RQH LQ DUHD  ,Q WKH EHG LV D GHDG \RXQJ PDQ ZLWK DQ XQXVXDOO\ SDOH
FRXQWHQDQFH7ZRVWUDQJHPDUNVDUHRQKLVQHFNDQGKHORRNVDVLIKHKDVEHHQGUDLQHGRI EORRG
7KLV\RXQJPDQLV'DQQDO,QKLVEHOWSRXFKWKHUHLVDPHVVDJH%HZDUH0\UQD
$UHD%HGURRP
6LPLODUWRDUHDQRILUHSODFHQRFRUSVH

$UHD6HUYDQW
V%HGURRP
&KHDSHUIXUQLWXUHILUHSODFHQRWKLQJRILQWHUHVW

$UHD6WRUDJH&KDPEHU
7KLV ODUJH URRP LV ILOOHG ZLWK MXQNROG IXUQLWXUH PRWKHDWHQ OLQHQV FKLOGUHQ
V WR\V HWF $ QHVW RI  JLDQW FHQWLSHGHV VHH
0RQVWHUV6WDWLVWLFV&KDUWZLOOEHGLVWXUEHGLIWKH3&VVHDUFKWKHURRP

$UHD%HGURRP
7KLVEHGURRPGXVW\DQGVKHHWFRYHUHGLVODUJHDQGRSXOHQWO\DSSRLQWHG$ODUJHGUHVVHUFRQWDLQVIRXUJROGFDQGOHVWLFNVZRUWK
ULONVDSLHFH
$UHD%DVHPHQW

7KHEDVHPHQWLVROGDQGPXVW\DQGFRQWDLQVDUFKHGVWRQHEXWWUHVVHVHYHU\WHQIHHWJLYLQJRQHWKHLPSUHVVLRQWKDWKH
LVLQDVHULHV RIFDWDFRPEV2OGFUDWHVEDUUHOVDQGER[HVWKHQRUPDOGHWULWXVRIDEDVHPHQWDUHVFDWWHUHGDERXW
1XPHURXVJLDQWFHQWLSHGHQHVWVDUHDOVRLQWKHEDVHPHQW)RUHYHU\WXUQWKH3&VVHDUFKWKHUHLVDFKDQFHWKH\ZLOOGLVWXUED
QHVW RI G JLDQW FHQWLSHGHV 7KHUH LV QRWKLQJ RI YDOXH LQ WKH EDVHPHQW 3UHVVLQJ D MXWWLQJ EULFN RQ WKH VRXWK ZDOO RSHQV WKH
VHFUHWGRRUWRDUHD

$UHD6HFUHW5RRP
$FRIILQLQZKLFK0\UULDVOHHSVGXULQJWKHGD\LVIRXQGLQWKLVURRP,QVLGHWKHFRIILQLVDSXUVHFRQWDLQLQJGLDPRQGLQDPEHU
JOXOGLWFKHVDQGDEXFNQDUG
VOHDWKHUSXUVH/DQNKPDUVW\OH,IDQDJROVPHUGXNDQGULONDUHSODFHGLQVLGHWKHQH[WPRUQLQJ
RIHDFKZLOOPDJLFDOO\DSSHDULQWKHSXUVH2WKHUZLVHWKHSXUVHIXQFWLRQVDVLWV$' 'JDPHHTXLYDOHQW

(QFRXQWHU.H\
 ,
PD6RXO0DQ

,I WKH (DWHU RI 6RXOV KDV QRW EHHQ NLOOHG LW LQH[RUDEO\ IROORZV WKH FKDUDFWHUV DW LWV VORZ SDFH 0\UULD LV D EXQGOH RI HQHUJ\
EUXVKLQJRIITXHVWLRQVZLWKD:H
OOWDONDERXWWKLVODWHUDLUDVVKHOHDGVWKHZD\LQWRWKHOLEUDU\3XUSRVHIXOO\0\UULDUHYHDOV
DQGRSHQVDVDIHIURPEHKLQGDURZRIOHDWKHUFRYHUHGYROXPHVDQGSXOOVRXWDJOHDPLQJGDJJHUDGDJJHUYVHQFKDQWHG
RUVXPPRQHGFUHDWXUHV6KHJLYHVLWWRRQHRIWKH3&VMXVWDVWKH(DWHURI6RXOVUHQGVWKHKHDY\RDNGRRURIWKHOLEUDU\:LWKWKH
RQO\HVFDSHEHLQJDWKLUGIORRUZLQGRZWKH3&VPXVWPDNHWKHLUVWDQGKHUH

0\UULD
V1HZHVW6WRU\

:KHQWKH(DWHURI6RXOVLVGHVWUR\HGFKDUDFWHUVPD\RQFHDJDLQEHFRPHVXVSLFLRXVRI0\UULD:K\VKRXOGDVWUDQJHGHPRQLF
FUHDWXUHEHKXQWLQJDQLQQRFHQW\RXQJZRPDQRYHUDILJKWDPRQJPRQH\OHQGHUV"$QGZKDWDERXWWKHFKDQJHLQKHUSHUVRQDOLW\"
7KH0\UULDWKH3&VNQHZZRXOGVLPSO\KDYHFRZHUHGLQIHDU
,IWKH3&VVWDUWDVNLQJTXHVWLRQVUHDGWKHIROORZLQJWH[WDORXG,IWKH\GRQRWDVNTXHVWLRQVGRQRWJLYHWKHPWKLVLQIRUPDWLRQ

,VHHWKDW,PXVWQRZWHOO\RXWKHIXOOWUXWK<RXUEUDYHU\PXVWQRWJRXQUH ZDUGHGRUXQDSSUHFLDWHGDQGPHQVXFK
DV\RXUVHOYHVGHVHUYHWRNQRZHYHU\WKLQJDERXWWKHRQH\RXDUHDLG LQJ VRZHOO
0\QDPHLV0\UULD0\ODWHIDWKHUZDVDPRQH\OHQGHUDQGLQGHHGP\ORYHU
VQDPHLV'DQQDO

6KHGGLQJ KHU LQQRFHQW DQG GHPXUH SHUVRQDOLW\ WKLV WLPH 0\UULD LV FRQILGHQW ZKHQ VKH WDONV +HU WRQH LV ORXGHU DQG PRUH
FRQWUROOHGDQGVKHNHHSVH\HFRQWDFWZLWKWKH3&V

<RX VHH 'DQQDO GDEEOHG LQ WKH DUFDQH DUWV +H UHFHQWO\ FDPH WR WKH DWWHQWLRQ RI WKH 6RUFHUHU
V *XLOG ZKHQ KH
XQFRYHUHGWKHVHFUHWRIWUDQVPXWDWLRQRIWKHHOHPHQWV+HZRXOGQRWVKDUH LWZLWKWKHEODFNZL]DUGVRIWKDWJXLOGVR
WKHLU FKLHI HQIRUFHU /XJK NLGQDSSHG PH LQ RUGHU 'DQQDO EH IRUFHG WR VXUUHQGHU WKH VHFUHW , HVFDSHG IURP KLV
FDUULDJHDVKHZDVWDNLQJPHWRWKHJXLOG
VVHFUHWODLUDQGZDQGHUHGWKH7HQGHU ORLQXQWLO,GLVFRYHUHG\RX
$JDLQOHWPHDSRORJL]HIRUWKHGHFHSWL RQEXW,ZDVVFDUHGWKDWQRRQHZRXOGDLGPHDJDLQVWWKH6RUFHUHUV,WZDV
REYLRXVO\ /XJK ZKR VHQW WKH 6OD\ HUV DIWHU PH WR FRPSOHWH WKH NLGQDS SLQJ KH EXQJOHG %XW LW PXVW KDYH WDNHQ
SRZHUIXO ZL]DUGV WR FRQMXUH WKH (DWHU RI 6RXOV 7KH\ DUH WDNLQJ QR FKD QFHV DQG ZRXOG VRRQHU VHH 'DQQDO DQG
P\VHOIGHDGWKDQULVNWKHVHFUHWRIWUDQVPXWDWLRQFRPLQJWRWKHDWWHQWLRQRIWKHRYHUORUG
'DQQDO ZLOO EH PHHWLQJ PH KHUH VKRUWO\ DQG RQFH KH HQWHUV KLV ODERUD WRU\ LQ WKH EDVHPHQW KH ZLOO EH DEOH WR
FRQMXUHSURWHFW LRQVWKDWZLOONHHSXVDOOVDIHWKURXJKRXWWKH1LJKWRI)HDU7KHQLQWKHPRUQLQJZHZLOOJLYHWKH
WUDQVPXWDWLRQ VSHOO WR WKH RYHUORUG DQG KH ZLOO UHZDUG 'DQQDO DQG PH EH\RQG PHDVXUH $QG \RX WRR VKDOOEH
DPSO\UHZDUGHGIRU\RXUDVVLVWDQFH

:LWK 0\UULD QRZ UHYHDOHG DV D VWURQJ ZLOOHG FDSDEOH ZRPDQ RI JUHDW EHDXW\ DQG SRZHU KHU &KDULVPD DQG
&RPHOLQHVVLQFUHDVHE\SRLQWHDFK,IWKHSOD\HUVDUHUXQQLQJ)DIKUGDQGWKH*UD\0RXVHUWKHVHFKDUDFWHUVVKRXOG
EHFKDUPHG E\KHUEHDXW\,IWKH'0LVUXQQLQJD/DQNKPDUW$' 'JDPHFDPSDLJQWKHFKDUPLQIOXHQFHDQG
VRFLDOOHYHORI0\UULDVKRXOGDXWRPDWLFDOO\LQIOXHQFHWKH3&V
%XW ZKDWHYHU JDPH WKH '0 LV UXQQLQJ KH VKRXOG HPSKDVL]H 0\UULD
V EHDXW\ DQG FKDULVPD DQG HQFRXUDJH WKH
SOD\HUVWRKDYHWKHLUFKDUDFWHUVUHVSRQGVWURQJO\WRLW
,IWKH3&VWU\WROHDYH0\UULDVKHFDQFDVWDFKDUPSHUVRQVSHOORIXQXVXDOSRWHQF\RQVDYLQJWKURZVDJDLQVWLWV
HIIHFW$PDQLSXODWLYHFKDUDFWHUVKHWULHVWRSOD\WKHFKDUDFWHUVRIIHDFKRWKHU:KHQHYHUVKHLVDORQHZLWKD3&
VKHVXJJHVWVWKDWVKHLVIDOOLQJLQORYHZLWKKLP0HDQZKLOHWKHRWKHUPHPEHUVRIWKHSDUW\PD\ZDQGHUDURXQGWKH
PDQVLRQ
,WVKRXOGEHFOHDUWRWKH'0EXWQRW\HWWRWKHSOD\HUVWKDWDOORI0\UULD
VVWRULHVDUHIDOVHDQGWKDWVKHLVDFWXDOO\D
/DQNKPDUW YDPSLUH 6HH 1HZ0RQVWHUV LQ/DQNKPDUVHFWLRQDWWKH HQG RIWKLVERRNOHW'DQQDOZDV LQIDFW KHU
ORYHUEXWVRRQHURUODWHUHYHU\YDPSLUHVKRZVKHUORYHLQWKHVDPHZD\
0\UUOD
V7UXH6WRU\
0\UULD LVD /DQNKPDUWYDPSLUH QRZZHOORYHU\HDUVROG)RUDOOWKLVWLPHVKHKDVGDPPHGRQH QHZYLFWLP
HDFKIXOOPRRQ7KHORQHOLQHVVRIYDPSLULVPKDVGULYHQKHUWRWDNHRQPDQ\ORYHUVRYHUWKH\HDUVHDFKKDVODVWHG
QRPRUHWKDQDPRQWK6RPHPRQWKVVKHLVPHUHO\WKLUVW\DQGWDNHVWKHQHDUHVWYLFWLPVKHFDQILQG
7KLVLVWKHILUVWWLPHLQ\HDUVWKDWWKHUHDO1LJKWRI)HDULQZKLFKWKH*RGVRI/DQNKPDUDFWXDOO\ZDONWKH
VWUHHWVDQGDIXOOPRRQKDYHFRLQFLGHG$QXPEHURI\HDUVDJRRQHRI0\UULD
VYLFWLPVZDVDSULHVWRIWKH*RGVRI
/DQNKPDU7RQLJKWWKH*RGVDUHWDNLQJWKHLUUHYHQJH
)LUVWWKH\GLUHFWHGWKH6OD\HUV
%URWKHUKRRGDWWDFNDQGZKHQWKDWIDLOHGWKH\VHQWWKH(DWHURI6RXOV
1RZZLWKWKHIXOOPRRQDERXWWRULVHWKH*RGVRI/DQNKPDUJURZGHVSHUDWH

%DG0RRQ5LVLQJ
,I WKH 3&V KDYHJURZQVXVSLFLRXV RUWU\ WROHDYHUXQWKLVHYHQWLPPHGLDWHO\,IQRWWKH'0VKRXOGEXLOGXSWKH
VXVSHQVHEHIRUHOHWWLQJWKHDGYHQWXUHUHDFKLWVFOLPD[
7KHIXOOPRRQULVHVDWPLGQLJKW7KHVRXQGRIFKXUFKEHOOVHFKRWKURXJKRXWWKHFLW\
$VVRRQDVWKHGLVNRIWKHPRRQDSSHDUVWKURXJKWKHZLQGRZFDVWLQJLWVJKRVWO\OLJKWRQHYHU\RQHLQWKHURRP\RX

QRWLFHDWUDQVIRUPDWLRQ WDNLQJSODFHLQ0\UULD
VIDFH+HUSDOHIDFHJURZVHYHQZKLWHUKHULQFLVRUVOHQJWKHQKHU
OLSVFKDQJHIURPUHGWREODFNDQ GKHUH\HVJORZZLWKDVLQLVWHUOLJKW ,WLVWLPHVKHVKRXWVWULXPSKDQWO\DV\RX
UHDOL]HWKDW0\UULDQRZORRNVYHU\PXFKOLNHDYDPSLUHLQWKHKRUURUVWRULHV\RXZHUHWROGDVDFKLOG
1RZ FRQVXPHGZLWKEORRGOXVW0\UULD DWWDFNVWKHFKDUDFWHUVZLWKWKH LQWHQWLRQRINLOOLQJWKHPDQGGUDLQLQJWKHLU
EORRG
6KHLVFDSDEOHSRZHUIXOLQWHOOLJHQWDQGFUDIW\DQGZLOOXVHDOOWKHSRZHUVDWKHUFRPPDQGLQRUGHUWRZLQ,IWKH
FKDUDFWHUVGRQRWSRVVHVV PDJLFZHDSRQVH[FHSWIRUWKHGDJJHUWKH\ZLOOILQGLWGLIILFXOWWREHDWKHUGLUHFWO\,I
WKH\GRQRWWKLQNRILWWKHPVHOYHVVXJJHVWWKDWWKHFKDUDFWHUVIOHHDIWHUDOOGDZQLVRQO\DERXWKRXUVDZD\,I
WKH\IOHHVHHHQFRXQWHU
0\UULD ZLOOSXUVXHWKHFKDUDFWHUVFKDVLQJWKHPWKURXJKWKHGHVHUWHGVWUHHWVRI/DQNKPDU$OOWKHGRRUVRQVWUHHW
OHYHODUHORFNHGDQGQRRQHZLOORSHQWKHPXQGHUDQ\FLUFXPVWDQFH/LNHZLVHDOOWKHZLQGRZVKXWWHUVDUHWLJKWO\
VHFXUHG$Q\RSHQLQJLVRWKHUZLVHEDUUHG
0\UULDVXPPRQVKRUGHVRIUDWVDQGEDWVWRDLGKHULQKXQWLQJGRZQWKH3&V8VHDOOWKHUHVRXUFHVRIWKH5DQGRP
%XLOGLQJDQG%ORFN*HQHUDWRUVLQWKH6RXUFHERRNWRPDNHDZLOGDQGH[FLWLQJFKDVHWKURXJKWKHGHVHUWHGFLW\
,I WKH FKDUDFWHUV VXUYLYH XQWLO GDZQ 0\UULD PXVW UHWUHDW WR KHU KRXVH DQG HQWHU KHU FRIILQ LQURRP  7KH 3&V
VKRXOGKDYHDQHDV\WLPHGHVWUR\LQJKHUKHUH
,I WKH 3&V OHDUQHGHDUOLHUWKDWWKH 6OD\HUVZHUHJRLQJWRWDNHWKHNLGQDSSHG0\UQDWRWKH 7HPSOH RIWKH*RGVRI
/DQNKPDUWKHSDUW\PD\GHFLGHWRJRWKHUH7KH'0PD\JLYHWKH3&VDFOXHLIWKH\QHHGKHOS0\UULDZLOOIROORZ
WKHP WR WKH 7HPSOH
V SRUWDO ZKHQ D QXPEHU RI VWUDQJH VKDSHV FRQMXUH XS IURP WKH IORRU /RRNLQJ DURXQG VKH
VFUHDPVLQWHUURUDQGWULHVWRIOHHEXWWKHVKDSHVFRQWLQXHWRDGYDQFHVXUURXQGLQJKHU6KHVFUHDPVRQFHPRUHLQ
DJRQ\DVWKHVKDSHVGLVDSSHDUOHDYLQJDSLOHRIGXVWLQVLGH0\UULD
VUHGJRZQ
$WODVWWKHJRGVRI/DQNKPDUKDYHJRWWHQWKHLUUHYHQJH

'HYLO:LWK$%OXH'UHVV2Q
7KLV HQFRXQWHU KDV D  FKDQFH RI
RFFXUULQJHDFKKDOIKRXUWKHSDUW\VSHQGVLQ
WKHVWUHHWV5XQWKLVHYHQWRQO\LIWKH3&VDUH
IOHHLQJIURP0\UULD
VPDQVLRQ
$V \RX UXQ GRZQ WKH VWUHHW D WKLFN IRJ
FRYHUVWKHKXPLGSDYHPHQWDQG\RXEHJLQWR
IHHO\RXUPRYHPHQWVVORZLQJGRZQDOPRVWWR
D KDOW ,Q DZH \RX GLV FRYHU VL[ XWWHUO\
KRUULEOH FUHDWXUHV 6RPH DUH ZUDSSHG LQ
EDQGDJHV RWKHUV ZHDU DQFLHQW WUDSSLQJV
DQGDUPRUVWKDWPXVWRQFHKDYHEHHQWKRVH
RIKHURHVDQGNLQJV<RXWU\VFUHDPLQJEXW
QR VRXQG FRPHV IURP \RXU OXQJV $V WKHLU
GDUNH\HVRFNHWVJORZ ZLWKWKHDXUD RIHYLO
DQG DQJHU WK H\ VORZO\ UDLVH WKHLU VNHOHWDO
DUPV LQ \RXU GLUHFWLRQ 7KH FROG JULS RI
GHDWKFOXWFKHV\RXUKHDUWV
7KH FUHDWXUHV DUH WKH *RGV RI /DQNKPDU
VHH 6RXUFHERRN SDJH  URDPLQJ WKH
VWUHHWVRIWKHFLW\LQVHDUFKRIUHYHQJH7KH\
FDQFDVWDQ\VSHOOGHVFULEHGLQ WKHUXOHV
,Q WKLV HYHQW WKH SDUW\ IDOOV YLFWLP WR DQ
DUUD\ RI VORZ IHDU DQG KROG SHUVRQ VSHOOV
(DFK 3& PXVW PDNH WZR VDYLQJ WKURZV YV
3DUDO\]DWLRQ DW   RU EH WRWDOO\ SDUDO\]HG
6RPHRIWKHJRGVDUHXVLQJ(63 RQWKH3&V
DQG WKHUHIRUH XQGHUVWDQG WKDW 0\UULD LV
SXUVXLQJWKHSDUW\

:LWKRXW D ZRUG WKH JRGV VKRXOG LPPHGLDWHO\ JR DIWHU 0\UULD 6KH ZLOO UXQ WRZDUG WKH WHPSOH DQG DIWHU D IHZ
PRPHQWVWKHFKDUDFWHUVZLOOVHH0\UULDGLHDVGHVFULEHGLQHYHQW
$OWKRXJKWKHJRGVZLOOQRWKDUPWKH3&VGXULQJWKHLUEULHIHQFRXQWHUWKH\VKRXOGWHUULI\WKHPQHDUO\WRGHDWK)RU
H[DPSOH RQH JRG PLJKW OLIW D SDUDO\]HG FKDUDFWHU VWDUH KLP LQ WKH H\HV DQG FDUHOHVVO\ WKURZ WKH 3& DVLGH 2I
FRXUVHLID3&WULHVWRDWWDFNUDWKHUWKDQIOHHWKDWFKDUDFWHUVKRXOGEHGHVWUR\HG

(SLORJXH

2QFH0\UULDLVGHDGWKH3&VFDQVWHDOZKDWHYHUWUHDVXUHRQZKLFKWKH\FDQOD\WKHLUKDQGV8QKDSS\ZLWKWKH3&V
EHFDXVH WKH\ NLOOHG WKH (DWHU RI 6RXOV WKH *RGV RI /DQNKPDU DQG WKHLU SULHVWV RIIHU QR UHZDUG EXW WKH\ VHHN
UHYHQJH
)DWW\LVKDSS\WRZHOFRPHWKHPEDFNDWWKH/DVW&KDQFHHVSHFLDOO\VLQFHWKH\KDYHFDVKEXWKHDQGWKH SDWURQV
FRQVLGHUDQ\VWRU\WKH3&VWHOOWREHMXVWDQRWKHUWDOOWDOH

1(:02167(56,1/$1.+0$5
(DWHURI628/6
)5(48(1&<
9HU\5DUH
12$33($5,1*
$5025&/$66
029( 
+,7',&(DYKS
,1/$,5
75($685(7<3(1LO
122)$77$&.6
7+$&2 
'$0$*($77$&.
HDFKVSHFLDO
63(&,$/$77$&.6:LVGRPGUDLQ
63(&,$/'()(16(6RUEHWWHUZHDSRQWRKLW
0$*,&5(6,67$1&(6WDQGDUG
,17(//,*(1&( +LJK
$/,*10(171HXWUDO
6,=( /
VSKHUHRIGDUNQHVV
36,21,&$%,/,7<1LO
$WWDFN'HIHQVH0RGHV1LO
/(9(/;39$/8(9KS

$Q (DWHU RI 6RXOV LV D EHLQJ IURP DQRWKHU GLPHQVLRQ VXPPRQHG RU JUDQWHG WR KLJK OHYHO FOHULFV ,W LV XVHG WR VOD\ EHLQJV DV
RUGHUHGE\WKHFOHULFZKRVXPPRQHGRUUHFHLYHGLW$Q(DWHURI6RXOVDSSHDUVDVDFORXGRIJORZLQJGDUNQHVVDERXWIHHWLQ
GLDPHWHU,WFDQDVVXPHDQ\VKDSHGHVLUHG2QFHDVVLJQHGDYLFWLPWRNLOOWKH(DWHURI6RXOVZLOOQRWTXLWXQWLOHLWKHULWRULWV
YLFWLPLVGHIHDWHG$Q(DWHURI6RXOVLVKLJKO\LQWHOOLJHQWDQGZLOODFFRPSOLVKLWVPLVVLRQE\DQ\PHDQVLWFDQ
,Q FRPEDW WKH FUHDWXUH DWWDFNVZLWKWZRJKRVWO\FODZVHDFKURXQG ,QDGGLWLRQWRQRUPDOGDPDJH HDFKWLPHLW KLWVWKH YLFWLP
PXVWPDNHDVDYLQJWKURZYV'HDWK0DJLFRUORVHRQHSRLQWRI:LVGRP,IWKHFKDUDFWHUVXUYLYHVDQHQFRXQWHUZLWKWKH(DWHU
RI6RXOVKHUHJDLQVORVW:LVGRPDWWKHUDWHRISRLQWSHUGD\7KHFOHULFDOVSHOOUHVWRUDWLRQ ZLOODOVRUHVWRUHORVW:LVGRP
7KH(DWHURI6RXOVPD\RQO\EHVWUXFNE\PDJLFDOZHDSRQV1RUPDODQGVLOYHUZHDSRQVKDYHQRHIIHFWRQLW

,I D YLFWLP LV VODLQ RU LV UHGXFHG WR  :LVGRP WKH YLFWLP LV GHDG DQG WKH (DWHU RI 6RXOV UHWXUQV WR LWV RZQ
GLPHQVLRQ&KDUDFWHUVVODLQ E\DQ(DWHURI6RXOVFDQQRWEHUDLVHGRUUHLQFDUQDWHG,IWKH(DWHURI6RXOV
KLWSRLQWV
DUHUHGXFHGWRLWGLVVROYHVLQWRDIRUPOHVVFORXGDQGGULIWVDZD\QHYHUWRUHWXUQ
,IWKH(DWHURI6RXOV
YLFWLPLVVODLQE\DQRWKHUEHLQJRULIWKH(DWHULVGHIHDWHGLQFRPEDWWKH(DWHURI6RXOVUHWXUQV
WRWKHFOHULFZKRVXPPRQHGLWDQGDWWDFNVKLP%HFDXVHRILWVUDJHDQGIUXVWUDWLRQWKH(DWHUDWWDFNVDVLILWZHUHD
 +' PRQVWHU DQG GRHV G SRLQWV RI GDPDJH   :LVGRP SRLQWV GUDLQ SHU DWWDFN ,I WKH VXPPRQLQJ FOHULF
GHIHDWVLWDJDLQWKH(DWHURI6RXOVUHWXUQVWRLWVKRPHGLPHQVLRQDQGZLOOQRWUHWXUQ
7KDQ[DQGDWLS
WKHKDWWR=HE&RRNGHVLJQHUH[WUDRUGLQDLUH

9DPSLUH/DQNKPDUW

)5(48(1&<5DUH
12$33($5,1*O
$5025&/$66
029( 
+,7',&(
,1/$,5
75($685(7<3()
122)$77$&.6
7+$&2
'$0$*($77$&.
G
63(&,$/$77$&.6(QHUJ\GUDLQ
63(&,$/'()(16(6RUEHWWHUZHDSRQWRKLWUHJHQHUDWLRQJDVHRXVIRUP
0$*,&5(6,67$1&(6HH%HORZ
,17(//,*(1&(([FHSWLRQDO
$/,*10(17&KDRWLF(YLO
6,=(0
36,21,&$%,/,7<1LO
$WWDFN'HIHQVH0RGHV1LO
/(9(/;39$/8(9,O,KS
7KH/DQNKPDUWYDPSLUHLVLQPDQ\ZD\VVLPLODUWRLWV$' 'JDPHFRXVLQWKHPRVWGUHDGHGRIWKHFKDRWLFHYLO
XQGHDG
8QOLNHWKHQRUPDOYDPSLUH/DQNKPDUWYDPSLUHVRQO\KDYHWKHLUIXOOYDPSLULFDELOLWLHVZKHQWKHIXOOPRRQLVLQWKH
QLJKWVN\'XULQJRWKHUWLPHVWKH\KDYHQRUPDOKXPDQFKDUDFWHULVWLFV WKRVHWKH\KDGZKHQWKH\ZHUHPHUH
PRUWDOV/LNHDOOYDPSLUHVWKH\PXVWUHVWLQWKHLUFRIILQVGXULQJWKHGD\DQGFDQRQO\FRPHRXWDWQLJKWZKHWKHURU
QRWWKH\DUHLQWKHLUIXOOYDPSLULFSKDVH
:KHQWKH\DUHQRUPDOQRFWXUQDOKXPDQVWKH\DUHSDOHRIFRPSOH[LRQIUHTXHQWO\RIKLJKFKDULVPDDQGVHHNFRP
SDQLRQVKLSZLWKWKHGHVSHUDWLRQRIWKRVHZKROLYHRQO\DVKDGRZOLIH7KH\GRQRWKDYHWKHEORRGOXVWXSRQWKHP
DQGIUHTXHQWO\SDVVDVQRUPDO
%XWWKRVHZKREHFRPHLQYROYHGZLWKDEHDXWLIXO/DQNKPDUYDPSLUHDUHVDIHRQO\XQWLOWKHQH[WPRRQULVHZKHQWKH
IDQJVRIWKHYDPSLUHVORZO\DSSHDUDQGWKHUDJLQJOXVWIRUEORRGEHFRPHVWKHRQO\WKLQJRQLWVPLQG7KHQQRRQH
QRWIDPLO\RUGHDUHVWORYHLVVDIHIURPLWVGHSUHGDWLRQV
2QWKHQLJKWRIWKHIXOOPRRQWKHYDPSLUHEHFRPHVIXOO\SRZHUHG7KH/DQNKPDUWYDPSLUHDFTXLUHVVWUHQJWK
DQGWKHDELOLW\WRGUDLQOLIHHQHUJ\OHYHOVSHUVXFFHVVIXOKLW,QDOOSKDVHVZKHWKHURUQRWWKHPRRQLVIXOOWKH
/DQNKPDUWYDPSLUHLVLPPXQHWRDOOEXWPDJLFDOZHDSRQV
:KHQWKHPRRQLVIXOOWKHYDPSLUH UHJHQHUDWHV GDPDJHDWWKHUDWHRIKLWSRLQWVSHUPHOHHURXQG,IEURXJKWWR
KLWSRLQWVE\FRPEDWWKHYDPSLUHLVQRWNLOOHGEXWLVPHUHO\IRUFHGLQWRJDVHRXVIRUP ,WPXVWWKHQUHWXUQWRLWV
FRIILQZLWKLQWXUQVDQGUHVWIRUKRXUV6OHHSFKDUP DQGKROGVSHOOVGRQRWDIIHFWYDPSLUHVQHLWKHUGRSRLVRQRU
SDUDO\VLV9DPSLUHVWDNHRQO\KDOIGDPDJHIURPFROGRUHOHFWULFDOVSHOOVYDPSLUHFDQDVVXPHJDVHRXVIRUP DWZLOO
DQGFDQVKDSHFKDQJH LQWRDODUJHEDWZKHQHYHUGHVLUHG
7KHYDPSLUHKDVWKHDELOLW\WRFKDUPSHUVRQ PHUHO\E\JD]LQJLQWRLWVYLFWLP
VH\HVWKLVSRZHUZRUNVZKHWKHURUQRW
WKHPRRQLVIXOO7KHFKDUPLVDSRZHUIXORQHUHVXOWLQJLQDWRVDYLQJWKURZVYVLWVHIIHFW7KHYDPSLUHLV
QRUPDOO\ORDWKWRXVHWKHSRZHUZKHQQRWIXOO\SRZHUHGEHFDXVHRIWKHFRQVHTXHQFHVRIIDLOXUH
9DPSLUHV FDQVXPPRQFUHDWXUHVWRDLGWKHP'HSHQGLQJRQWKHVXUURXQGLQJVWKHVXPPRQUHVXOWVLQG2UDWVRU
EDWVRUGZROYHVDUULYLQJLQGPHOHHURXQGV
/DQNKPDUWYDPSLUHVUHFRLOIURPVWURQJJDUOLFRUWKHIDFHRIDPLUURU7KHLULPDJHGRHVQRWUHIOHFW$Q\KRO\V\PERO
VLQFHDOOZKLWHZL]DUGVLQ/DQNKPDUDUHRIDJRRGDOLJQPHQWZLOOLIVWURQJO\SUHVHQWHGKROGRIIWKHDWWDFNRID
YDPSLUH1RQHRIWKHVHPHUHO\FDXVHGHYLFHVKDUPRUGULYHWKHPRQVWHURIIEXWLWWRKHVLWDWHGPHOHHURXQGV
EHIRUHDWWDFNLQJ DJDLQ$KRO\V\PEROIRUFHVWKHYDPSLUHWRSRVLWLRQLWVHOIVRWKDWWKHREMHFWLVQRWEHWZHHQWKH
YDPSLUHDQGLWVLQWHQGHGYLFWLP
6XPPRQHGRUFKDUPHGFUHDWXUHVXQGHUWKHLQIOXHQFHRIDYDPSLUHFDQDWWDFNUHJDUGOHVVRIWKHSUHVHQFHRIVXFK
ZDUGVDQGFDQEHRUGHUHGE\WKHYDPSLUHWRZUHVWWKHREMHFWVDZD\

/DQNKPDUWYDPSLUHFDQEHVODLQRQO\E\WKHIROORZLQJPHWKRGVH[SRVXUHWRGLUHFWVXQOLJKWFDXVHVGHDWKLQRQH
WXUQDQGLWORVHVDOOVSHFLDOSRZHUVLPPHGLDWHO\LPPHUVLRQLQUXQQLQJZDWHUIRUWKUHHPHOHHURXQGVRUGHVWUR\LQJ
DOOLWVFRIILQVEXWDFOHYHUYDPSLUHPD\KDYHVHYHUDOFRIILQVKLGGHQDZD\$YDPSLUHQRWXQGHUWKHLQIOXHQFHRIWKH
IXOOPRRQFDQQRWHQWHUJDVHRXVIRUP XQOHVVLWLVUHGXFHGWRKLWSRLQWV,WLVSRVVLEOHWRFDSWXUHDYDPSLUHKROGLW
XQWLOWKHQH[WGD\DQGWKHQH[SRVHLWWRVXQOLJKW
$Q\KXPDQRUKXPDQRLGGUDLQHGRIDOOOLIHHQHUJ\E\DYDPSLUHEHFRPHVDYDPSLUHXQGHUWKHFRQWURORILWVVOD\HU
7KLVWUDQVIRUPDWLRQWDNHVSODFHRQHGD\DIWHUWKHFUHDWXUHLVEXULHG,IWKHYDPSLUHWKDWVOHZWKHFUHDWXUHLVLWVHOI
NLOOHGWKHYDPSLUHVFUHDWHGE\LWEHFRPHIUHHZLOOHGPRQVWHUV

0RQVWHUV6WDWLVWLFV7DEOH
1DPH
%DWV
%DWV*LDQW
%HKHPRWK
%ODFN3XGGLQJ
%ULJDQGV
%ULJDQG/HDGHU
&KLYHVa13&
(DWHURI6RXOV
*LDQW&HQWLSHGH
*LDQW/HHFK
*RGRI/DQNKPDU
*UHHFK\ 13&
*XDUG.OHVKLWH
*XDUG3DODRH
+HOO+RXQG
0XPP\
0XVNDWHO 13&
3RLVRQ(HO
5DW(OLWH*XDUG
5DWOIWKPDULDQ
5DW2UGLQDU\
5DW6ROGLHU
6DOW6SLGHU
6NHOHWDO%DWV
6WLUJH
7KXJV6OD\HUV
9DPSLUH
:DWHU&REUD
:HUHUDW

$&






























+'




)
)
7




)
)
)


)

)


)



)




KS






























$7






























'

a




a

1LO





















09
O





















 







6WDWLVWLFVJLYHQIRUFUHDWXUHVZKHQWKH3&VDUHUHGXFHGWRWKHLUVL]H

$/
1
1(
1
1
&(
&(
1
1
1
1
1(
1
1(
/1
/(
/(
&1
1
&1
&(
1
&1
1
1(
1
/(
&(
1
/(

7+$&2%22.

00

00

&$

00







1HZ

00

00

/ /







00

00



&$





00



&$

&$

00



1HZ

&$

00

6$
<HV
<HV
1R
<HV
1R
1R
1R
<HV
<HV
<HV
<HV
1R
1R
1R
<HV
<HV
1R
<HV
1R
1R
1R
1R
<HV
<HV
<HV
1R
<HV
<HV
<HV

6'
1R
<HV
1R
<HV
1R
1R
1R
<HV
1R
1R
<HV
1R
1R
1R
1R
1R
1R
1R
1R
1R
1R
1R
1R
1R
1R
1R
<HV
<HV
<HV

00 0RQVWHU0DQXDO00 0RQVWHU0DQXDO1HZ 1HZ0RQVWHU/ / /HJHQGV /RUH&$ /$1.+0$5


&LW\RI$GYHQWXUHVRXUFHERRN

5DQGRP(QFRXQWHUV7DEOH
&DWDFRPEV6HZHUV(QFRXQWHU

G*LDQW%DWV

 %HKHPRWK

 %ODFN3XGGLQJ

 G%ULJDQGV

 G*&HQWLSHGHV

 G*LDQW/HHFKHV


0XPP\

 G3RLVRQ(HOV

 G2UGLQDU\5DWV

 G6DOW6SLGHUV


G6NHOHWDO%DWV

 G6WLUJHV

 G7KXJV

 G:DWHU&REUDV

5ROOSHUFHQWLOHGLFH

0RWLYH
)RUGURXQGVWKH\WU\WRIRUFHWKHSDUW\WRUHWUHDW
*UDEVD3&E\WKHDQNOHDQGWULHVWRSXOOKLPLQWRWKHZDWHUVXUSULVHRQ
'URSVRIIFHLOLQJRQWRRQHFKDUDFWHUFKRVHQDWUDQGRPVXUSULVHRQ
2QWKHLUZD\WRSLOODJHDQROGWRPEIOHHLPPHGLDWHO\RQEHLQJVSRWWHG
&HQWLSHGHVFUHHSLQWR3&
VEDFNSDFNDWWDFNZKHQSDFNLVRSHQHG
7KHOHHFKHVRUZRUPVDWWDFNZRXQGHGFKDUDFWHUVILUVW
7KLVPD\EH$O,PD9DOLQRUFKDSWHURUDPXPP\WKDWORRNVOLNHKLP
7KHHHOVVOLGHGRZQDZHWSLSHWRDWWDFNWKHSDUW\SDVVLQJEHORZ
7KHUDWVVFXUU\DZD\DQGUHSRUWWR0XVNDWHOFKDSWHU
7KHVSLGHUVKDYHEHHQVHQWE\WKH7HPSOHRI0RJWRLQYDGHWKHVHZHUV
7KHUHLVDQFKDQFHWKDWDPXPP\ZLOODUULYHZLWKLQGURXQGV
,IWKHSDUW\GRHVQRWLQWHUUXSWWKHVWLUJHV
WKHVWLUJHVLJQRUHWKH3&V
7KHWKXJVDEVRUEHGLQSODQQLQJWKHLUQH[WFULPHGRQRWVHHWKHSDUW\

2QHRUWZRFREUDVFRLODURXQG3&
VOHJVZKLOHRWKHUVWU\WRNLOOKLP

0$3, 1REOH'LVWULFW

0$3,,&LWDGHO'LVWULFW

0DS,,,7HPSOH'LVWULFW

0DS,95LYHU'LVWULFW

0DS,;&DVK'LVWULFW

0DS; 7HQGHUORLQ'LVWULFW