7LOQHV5LVLQJ

(SLVRGH,,,RIWKH%URNHQ2UELWV7ULORJ\
$2QH5RXQG/LYLQJ)RUFH$GYHQWXUH


E\0RUULH0XOOLQV







0HWHRUVWRUPVZRUPVFROODSVHGWXQQHOVDQGVXUJHVRIHQHUJ\ELJHQRXJKWRSRZHUJORZURGVIURPKHUH
WR&RUXVFDQW±DQRWKHUW\SLFDOGD\LQWKHPLQHVRI7LOQHV"+DUGO\$QDGYHQWXUHIRU/LYLQJ)RUFHKHURHV
OHYHOV








‹  /XFDV )LOP /LPLWHG DQG 70 $// 5,*+76 5(6(59(' 8VHG XQGHU DXWKRUL]DWLRQ
53*$ LV D UHJLVWHUHG WUDGHPDUN RI :L]DUGV RI WKH &RDVW ,QF 7KLV VFHQDULR LV LQWHQGHG IRU
WRXUQDPHQWXVHRQO\DQGPD\QRWEHUHSURGXFHGZLWKRXWDSSURYDORIWKH53*$1HWZRUN
7LOQHV5LVLQJLVDVWDQGDUG53*$1HWZRUNWRXUQDPHQW
$IRXUKRXUWLPHEORFNKDVEHHQVHWDVLGHIRUWKLVHYHQW
EXW WKH DFWXDO SOD\LQJ WLPH ZLOO EH DERXW WKUHH DQG D
KDOIKRXUV
 ,W LV D JRRG LGHD WR DVN HDFK SOD\HU WR SXW D
QDPHWDJLQIURQWRIKLPRUKHU7KHWDJVKRXOGKDYHWKH
SOD\HU¶V QDPH DW WKH ERWWRP DQG WKH KHUR¶V QDPH
VSHFLHV DQG JHQGHU DW WKH WRS 7KLV PDNHV LW HDVLHU IRU
SOD\HUVWRNHHSWUDFNRIZKRLVSOD\LQJZKLFKFKDUDFWHU
 WLPHV  FUHGLWV 3URIHVVLRQ SJ &KHFN UHVXOW WLPHV
&KDUDFWHU(DUQLQJV
$W WKH EHJLQQLQJ RI WKH URXQG LI WKH FKDUDFWHUV DUH
HPSOR\HGWKH\UHFHLYHWKHLUSD\1RPDWWHUKRZPXFK
WLPH KDV SDVVHG VLQFH WKH SUHYLRXV URXQG WKH\ UHFHLYH
SD\IRURQHZHHN&KDUDFWHUVZKRDUHQRWHPSOR\HGEXW
ZKR KDYH SURIHVVLRQ RU FUDIW VNLOOV PD\ UROO DJDLQVW
WKRVH VNLOOV WR VHH KRZ PXFK WKH\ KDYH HDUQHG IURP
WKHLU SURIHVVLRQ RU FUDIW LQ WKH ODVW ZHHN 8VH WKH
PHWKRG LQ WKH FRUH UXOHV &UDIW SJ  &KHFN UHVXOW
6FRULQJ WKH JDPH IRU 53*$ SRLQWV 7KH 53*$ KDV  FUHGLWV 1RWH WKDW FKDUDFWHUV PD\ XVH RQO\ RQH RI
WKUHHZD\VWRVFRUHWKLVJDPH&RQVXOW\RXUFRQYHQWLRQ WKH DERYH PHWKRGV DQG PXVW FKRRVH ZKLFK EHIRUH
FRRUGLQDWRUWRGHWHUPLQHZKLFKPHWKRGWRXVH1RYRWH UROOLQJ(PSOR\PHQW&UDIWRU3URIHVVLRQ
VFRULQJ7KHSOD\HUVZULWHWKHLUQDPHVDQGQXPEHUVRQ 
WKH VFRULQJ SDFNHW JULG \RX ILOO LQ WKH WRS RI WKH JULG 3RVW6FHQDULR3DSHUZRUN
7KDW LV DOO 1R RQH LV UDWHG 7KLV PHWKRG LV XVHG IRU
SHRSOHZKRDUHMXVWSOD\LQJIRUIXQ ,Q DGGLWLRQ WR ILOOLQJ RXW D VFRULQJ SDFNHW WKH -XGJH
 3DUWLDO VFRULQJ 7KH SOD\HUV UDWH WKH JDPH PDVWHU QHHGVWRGRWKHIROORZLQJDIWHUD/LYLQJ)RUFHJDPH
DQG WKH VFHQDULR RQ WKHLU SOD\HUYRWLQJ VKHHW EXW  6LJQ DQG GDWH HDFK SOD\HU
V ORJ VKHHW RU SDVVSRUW
GRQ¶WYRWHIRURWKHUSOD\HUV7KHJDPHPDVWHUUDWHV 3OD\HUV DUH UHVSRQVLEOH IRU NHHSLQJ WUDFN RI WKHLU
WKH VFHQDULR DQG FRPSOHWHV SHUVRQDO DQG HYHQW RZQ H[SHULHQFH SRLQWV ,I WKH FRQYHQWLRQ
LQIRUPDWLRQEXWGRHVQRWUDWHWKHSOD\HUVDVDWHDP FRRUGLQDWRUKDVSURYLGHGSDVVSRUWVWLFNHUVSXWRQH
RU YRWH IRU SOD\HUV  7KLV PHWKRG LV XVHG ZKHQ LQWKHER[IRUWKHVFHQDULR
WKHUH LV QR FRPSHWLWLRQ EXW WKH FRQYHQWLRQ  $VNHDFKSOD\HUIRUWKHLUFUHGLWWRWDORULJLQDOWRWDO
FRRUGLQDWRUZDQWVLQIRUPDWLRQDVWRKRZWKHJDPH PLQXV DQ\WKLQJ VSHQW SOXV DQ\WKLQJ
PDVWHUV DUH SHUIRUPLQJ RU WKH JDPH PDVWHU ZDQWV
IHHGEDFNRQKLVRUKHURZQSHUIRUPDQFH
 9RWLQJ 3OD\HUV DQG JDPH PDVWHUV FRPSOHWH WKH
W QHHG WR EH
HQWLUH SDFNHW LQFOXGLQJ YRWLQJ IRU EHVW SOD\HU ,I
WKLV PHWKRG LV XVHG EH VXUH WR DOORZ DERXW 
PLQXWHV IRU WKH SOD\HUV WR EULHIO\ GHVFULEH WKHLU
FKDUDFWHUV WR WKH RWKHU SOD\HUV DQG DERXW 
PLQXWHV IRU YRWLQJ 7KLV PHWKRG LV XVHG ZKHQ WKH
SOD\HUVZDQWWRNQRZZKRSOD\HGWKHEHVWDPRQJVW
WKHP RU ZKHQ WKH DGYHQWXUH LV UXQ LQ WRXUQDPHQW
IRUPDW ZLWK ZLQQHUV DQG SUL]HV 0XOWLURXQG
DGYHQWXUHV XVXDOO\ UHTXLUH DGYDQFLQJ D VPDOOHU
QXPEHU RI SOD\HUV WKDQ SOD\HG WKH ILUVW URXQG VR
YRWLQJLVUHTXLUHGIRUPXOWLURXQGDGYHQWXUHV
 ,VVXLQJ )RUFH 3RLQWV :KHQ KHURHV SHUIRUP
:KHQ XVLQJ 9RWLQJ UDQN WKH SOD\HUV LQ RUGHU RI \RXU
YRWLQJFKRLFHZKLOHWKH\DUHFRPSOHWLQJWKHLUIRUPVVR
WKDW \RXDUHQRWLQIOXHQFHGE\WKHLUFRPPHQWVRQ \RXU
DELOLWLHV
 )RUFH HYHQW WKHUH DUH PDQ\ RSSRUWXQLWLHV IRU KHURLVP
$QRWHDERXWWKHWH[W6RPHRIWKHWH[WLQWKHPRGXOHLV
ZULWWHQ VR WKDW \RX PD\ SUHVHQW LW DV ZULWWHQ WR WKH
SOD\HUVZKLOHRWKHUWH[WLVIRU\RXUH\HVRQO\7H[WIRU
WKH SOD\HUV ZLOO EH LQ EROG LWDOLFV ,W LV VWURQJO\
UHFRPPHQGHG WKDW \RX SDUDSKUDVH WKH SOD\HU WH[W
LQVWHDG RI UHDGLQJ LW DORXG DV VRPH RI WKH WH[W LV
JHQHUDODQGPXVWEHDGDSWHGWRWKHVSHFLILFVLWXDWLRQRU
WRDFWLRQVRIWKHSOD\HUFKDUDFWHUV
W
 KDYH WR MXPS IURP D PRYLQJ VSHHGHU WR HDUQ D )RUFH
:RZ
WKHQWKH\VKRXOGSUREDEO\JHWD)3

7LOQHV5LVLQJ
HDUQHGZRQRWKHUZLVH JDLQHG LQ WKH VFHQDULR
:ULWHWKHQHZWRWDORQDIUHVK5HSXEOLF&UHGLW&KLS
DQG WHDU XS WKH ROG RQH <RX GRQ
FRQFHUQHG ZLWK HYHU\ VLQJOH FUHGLW WKLV LV MXVW D
ZD\WRNHHSWUDFNRIJHQHUDODPRXQWVRIPRQH\,I
WKH VHULHV KDVDORJVKHHWSXWWKH QXPEHUVRQ WKDW
LQVWHDG
 6LJQDQGGDWHDQ\DGGLWLRQDOFHUWLILFDWHV%HVXUHWR
SXWWKHFKDUDFWHUQDPHLQWKHVSDFHDYDLODEOH
 6LJQGDWHQRWDWH DQ\ PHWDJDPLQJ FHUWLILFDWHV WKDW
UHTXLUH \RXU DWWHQWLRQ 7KHVH VKRXOG EH HYLGHQW
IURPWKHPHWDJDPLQJFHUWLILFDWHV

,VVXLQJ)RUFHDQG'DUN6LGH3RLQWV
FLQHPDWLFDOO\ KHURLFDFWLRQV GRQ¶WIRUJHWWKDW \RX PD\
LVVXHD)RUFHSRLQWIRUVXFKDFWLYLWLHV%HFDXVHWKLVLVD
KHURLF FDPSDLJQ ZH H[SHFW KHURLVP  DQG HQFRXUDJH
MXGJHV WR UHZDUG LW ,Q WKH FRXUVH RI D VWDQGDUG /LYLQJ
,ID/LYLQJ)RUFHKHURSHUIRUPVLQDZD\WKDWLVKHURLF
GUDPDWLFDQGFLQHPDWLFWKHQD)RUFH3RLQWLVGHILQLWHO\
LQ RUGHU 2XU IDYRULWH VWRU\ LQYROYHG WKH KHUR DW WKH
SUHPLHUHZKROHDSWIURPDPRYLQJVSHHGHUJUDEEHGD
YLQH DQG VZXQJ RQ WKDW YLQH WR DWWDFN VRPHRQH LQ
DQRWKHU PRYLQJ VSHHGHU 7+$7 LV GUDPDWLF FLQHPDWLF
KHURLVP
 1RWHYHU\WKLQJZLOOEHWKDWH[WUHPHDQG\RXGRQ
3RLQWEXWLIDKHURGRHVVRPHWKLQJWKDWPDNHV\RXWKH
MXGJHVD\
 3DJH
 7KHFRUHUXOHVSJGHILQH³'UDPDWLF+HURLVP´
DVIROORZV
 7RTXDOLI\DVDQDFWRIGUDPDWLFKHURLVPDQDFWLRQ
PXVWIXOILOOWKUHHFULWHULD
N ,W PXVW DFFRPSOLVK D VLJQLILFDQW WDVN LQ WKH
GHIHQVHRIJRRGRUWKHGHIHDWRIHYLO
N ,W PXVW RFFXU DW D GUDPDWLFDOO\ DSSURSULDWH WLPH

'02YHUYLHZ
$VRFLDOYLVLW±RUWKHDQVZHULQJRIDGDUH±KDVEURXJKW
WKH KHURHV RI &XODULQ WR WKH PLQLQJ PRRQ RI 7LOQHV IDU
DERYHWKHOXVKMXQJOHZRUOG7KHVFHQDULRRSHQVZLWKWKH
KHURHVIRUFHGWRGLJRXWIURPDYHU\XQIRUWXQDWHFDYHLQ
XVXDOO\WKHFOLPD[RIWKHDGYHQWXUHDQG ZKLFK GHPROLVKHG QHDUO\ KDOI RI ³7KH 8QGHUJURXQG´
N ,W VKRXOG UHTXLUH VLJQLILFDQW ULVN RQ WKH SDUW RI RQHRIWKHSULPDU\ZDWHULQJKROHVEHQHDWKWKHVXUIDFHRI
WKHKHUR 7LOQHV
  6RPHRIWKHWURXEOHRQWKHPRRQLVGXHWRWKHDFWVRI
,VVXLQJ 'DUN 6LGH 3RLQWV 8QIRUWXQDWHO\ LW LV WKH PLQHUV ZKR KDYH UHFHQWO\ EHHQ LQVWUXFWHG WR KXQW
LPSRVVLEOH WR SURGXFH DQ H[KDXVWLYH OLVW RI DOO WKH GRZQ WKH \UL ZRUPV WKH PHWHUORQJ EOLQG ZRUPV WKDW
SRVVLEOH ZD\V SHRSOH FDQ JHW 'DUN 6LGH SRLQWV 7KHUH LQKDELW WKH GHHS UHFHVVHV 7LOQHV EXW WKHUH DUH RWKHU
DUHMXVWWRRPDQ\ZD\VWKDWWKHEHJLQQLQJVRIHYLOFDQ IRUFHVDWZRUNKHUH
PDQLIHVWWKHPVHOYHV  $IWHU LWV HMHFWLRQ IURP &XODULQ WKH 0HWDWKHUDQ
 7R TXRWH WKH 'DUN 6LGH VRXUFHERRN ³(YLO LV QRW &DUWHOVHWXSLWVSXEOLFRSHUDWLRQLQDVKLSRUELWLQJDERYH
DOZD\V HDV\ WR UHFRJQL]H $Q LQQRFHQW DFW PD\ WKHMXQJOHSODQHWEXWHVWDEOLVKHGDVHFUHWEDVHRQ7LOQHV
XOWLPDWHO\ UHVXOW LQ JUHDW VXIIHULQJ $Q DFW RI UHYHQJH DQGWKHFRQVWUXFWLRQRIWKLVEDVHLVZKDWLQLWLDOO\FDXVHG
PD\ VDYH WKH OLYHV RI PLOOLRQV RI SHRSOH 7KH SXUH DW WKH ZRUPV WR PRYH LQWR WKH PLQLQJ DUHDV PRUH KHDYLO\
KHDUW FDQ ODVK RXW LQ DQJHU (YLO PD\ OXUN EHQHDWK D WKDQWKH\KDGLQWKHSDVW7KDWWKHPDQDJHPHQWRQ7LOQHV
PDVNRIYLUWXH:KHWKHUDQDFWLVHYLORUQRWRIWHQERLOV RYHUUHDFWHGWRWKHZRUPVRQO\PDGHPDWWHUVZRUVHDQG
GRZQ WR D TXHVWLRQ RI PRWLYDWLRQ DQG PRWLYDWLRQ FDQ QRZ ZLWKWXQQHOVFROODSVLQJDOORYHUWKHSODFHVHFWLRQV
EHKDUGWRLGHQWLI\ RI WKH PLQH KDYH EHJXQ WR UHYHDO VHFUHWV WKH PRRQ KDV
:KHQ D *DPHPDVWHU LV LQ GRXEW DERXW ZKHWKHU WR NHSW IRU PDQ\ \HDUV 3HUKDSV WKH PRVW VKRFNLQJ
DZDUGD'DUN6LGH3RLQWWRDFKDUDFWHUKHRUVKHVKRXOG UHYHODWLRQFRPHVZKHQDWKHGHEULVVWRUPRSHQVWKHZD\
FRQVLGHU WKH FKDUDFWHU
V PRWLYHV 'LG WKH FKDUDFWHU DFW WR D VKLS WKDW FUDVKHG RQ 7LOQHV \HDUV DJR EUHDNLQJ
RXWRIDQJHU"+DWUHG"&UXHOW\"9HQJHDQFH"3ULGH"'LG WKURXJK WKH XSSHU WZR OHYHOV RI WKH PLQH V\VWHP DQG
WKHFKDUDFWHUFKRRVHDQRSWLRQVLPSO\EHFDXVHLWZRXOG FRPLQJ WR UHVW LQ D ORQJIRUJRWWHQ FDYHUQ ± LI DQ\RQH
DOORZKHUWRVSLOODQHQHP\
VEORRG":DVJUHHGRUHQY\ HYHUNQHZDERXWLWWREHJLQZLWK«
LQYROYHG"-HDORXV\"*UHDWVHFWLRQEHJLQQLQJRQSDJH 
 ZKLFK LOOXVWUDWHV WKH SUREOHP IDLUO\ SUHFLVHO\ 7KH
*0PXVWDVVHVVWKHPRWLYDWLRQVRIWKHFKDUDFWHUDQGLI
WKRVH PRWLYDWLRQV GHULYH IURP WKH EDVH HPRWLRQV WKDW
DUHWKHSDWKWRWKHGDUNVLGHWKHQD'63LVDSSURSULDWH
 /HDUQLQJ WKDW WKH FROODSVH ZDV WKH UHVXOW RI D
*HQHUDO1RWHVWRWKH*0
:KHQ UXQQLQJ WKLV DGYHQWXUH RU DQ\ 6WDU :DUV
DGYHQWXUH NHHS LQ PLQG WKH 6WDU :DUV DGYHQWXUHV
VKRXOG VHHP OLNH WKH 6WDU :DUV PRYLHV 7KH DFWLRQ
VKRXOG IORZ TXLFNO\ DQG WKH SOD\HUV VKRXOG QRW JHW
FDXJKW XS LQ WRR PDQ\ GHWDLOV RI ZKDW WKH\ DUH GRLQJ
'HVFULEH WKLQJV LQ VZHHSLQJ VWDWHPHQWV DQG UHFDOO
VFHQHVIURPWKHPRYLHVZKHQQHFHVVDU\WRKHOSSOD\HUV
YLVXDOL]H ZKDW LV JRLQJ RQ 0RUH WKDQ DQ\WKLQJ HOVH
KDYHIXQ
 7KLV LV DQ DGYHQWXUH IRU ORZ WR PLGOHYHO /LYLQJ
)RUFH FKDUDFWHUV DQG WKHUHIRUH FKDUDFWHUV OHYHOV 
WKURXJK  DUH DSSURSULDWH ,I D SOD\HU EULQJV D KLJKHU
OHYHOFKDUDFWHUWR\RXUWDEOHH[SODLQWKDWKHRUVKHPXVW
XVH D ORZHUOHYHO KHUR WR SOD\ LQ WKLV HYHQW ,I \RXU
SOD\HUVGRQRWKDYHKHURHVKHOSWKHPFUHDWHQHZRQHV
VHH \RXU HYHQW FRRUGLQDWRU IRU KHUR FUHDWLRQ
(QFRXQWHU7KH:D\8QGHUJURXQG
,QWKHZDNHRIDPDVVLYHFROODSVHEHQHDWKWKHVXUIDFHRI
7LOQHV WKH KHURHV PXVW KHOS WKH ORFDOV GLJ RXW DQG FDUH
IRUWKHLQMXUHG±LQFOXGLQJDQXQGHUVWDQGDEO\XSVHWGURLG
FRPELQDWLRQ RI IDFWRUV ± LQFOXGLQJ VHYHUDO IDLUO\ ODUJH
LPSDFWV RQ WKH VXUIDFH RI WKH PRRQ ± WKH KHURHV DUH
HQFRXUDJHG E\ DQRWKHU JURXS RI ³DGYHQWXUHUV´ WR KHOS
FRPE WKH PLQHV DQG ILQGDQ\RQH ZKR PLJKWEHLQMXUHG
WUDSSHGRURWKHUZLVHLQQHHGRIDVVLVWDQFH

(QFRXQWHU7KH3LWDQGWKH3DUDVLWHV
$V WKH\ EHJLQ WKHLU VHDUFK WKH KHURHV ILQG WKHPVHOYHV
IDFHGZLWKDGDXQWLQJREVWDFOH$ODUJHVHFWLRQRIWXQQHO
KDVFROODSVHGOHDYLQJDVL]DEOHSLW$WWKHERWWRPRIWKH
SLWWKH\FDQMXVWPDNHRXWWKHDXUDRIDJORZURGEXWQR
RQHDQVZHUVWKHLUFDOO7KHUHLVLQIDFWDPLQHUWUDSSHG
DW WKH ERWWRP RI WKH SLW EXW VKH LV XQFRQVFLRXV DQG
FDQQRWDQVZHU WKHP6KHLVDOVRLQGDQJHU IURPD VPDOO
KRUGH RI UDYHQRXV EHHWOHOLNH SDUDVLWHV ZKLFK DUH
PRYLQJFDXWLRXVO\WRZDUGKHU

LQVWUXFWLRQV



7LOQHV5LVLQJ  3DJH
(QFRXQWHU7KH'DUN%H\RQG LQWR D WUDS KH ZLOO FDWFK WKHP DQG RIIHU WR OHDG WKHP
3DVW WKH SLW WKH KHURHV ILQG WKDW WKH WXQQHO ZDOOV KDYH RXWDQGVXSSO\LQIRUPDWLRQDERXWWKHPLOLWDU\(VFDSHLV
JLYHQ ZD\ ZLWK EDUHO\ HQRXJK VWRQH OHIW WR NHHS WKH QRWVRHDV\WKRXJKOHDGLQJWRDUXQQLQJILJKWWKURXJK
FDYHUQ FHLOLQJ IURP FROODSVLQJ 7KHUH DUH OLIH IRUPV WKHPLQHVRI7LOQHVZLWKWKHPLOLWDU\LQSXUVXLW
QHDUE\ XWLOL]LQJ 6HH )RUFH RU PHFKDQLFDO PHDQV EXW
WKH\ DUH QRWKLQJ PRUH WKDQ \UL ZRUPV HDWLQJ WKHLU ZD\
WKURXJK WKH URFN 7KH ODUJH FDYHUQ FUHDWHG E\ WKH
FROODSVH RI WKH ZDOOV FRQWDLQV VHYHUDO ZHDN VSRWV LQ LWV
IORRU ZKLFK OHDG WR ORZHU OHYHOV RI WKH PLQH FRPSOH[
ZKHQVHDUFKHG
 FDPSDLJQ7KHUHWXUQRIWKH&DUWHOWRWKHIRUHIURQWWKH
(QFRXQWHU7KH'HVFHQW
0RYLQJGRZQZDUGLQWRWKH³JXWV´RI7LOQHVLVDWULFN\
SURSRVLWLRQ 7KH GLIILFXOWLHV DUH QRW OHVVHQHG DQ\ ZKHQ
WKH KHURHV VWLU XS D QHVW RI P\QRFNOLNH FUHDWXUHV ZKR
SXPPHOWKHPDVWKH\DWWHPSWWRGHVFHQGIXUWKHULQWRWKH
PLQH FRPSOH[ LQ VHDUFK RI VXUYLYRUV 5HDFKLQJ WKH
ERWWRP WKH KHURHV GLVFRYHU WKH UHPDLQV RI D GHFUHSLW
VKLS
 
(QFRXQWHU7KH*HQWOH$VFHQW
$QRWKHU JUHDW UXPEOLQJ VKDNHV 7LOQHV DV WKH KHURHV
LQYHVWLJDWH WKH VKLS DQG OHDUQ WKDW LW KDV EHHQ EHQHDWK
7LOQHVIRUVRPHWLPH+RZHYHULWLVRQO\ZLWKWKHUHFHQW
GHEULV VWRUP WKDW WKH LQWHULRU RI WKH VKLS KDV EHHQ
VXIILFLHQWO\ VKDNHQ WR WULJJHU LWV WUDFNLQJ GHYLFH ZKLFK
ZLOO VRRQ EULQJ UHSUHVHQWDWLYHV RI WKH &DUWHO DQG WKH
7KDHUHLDQ 0LOLWDU\ WR LQYHVWLJDWH 3HUKDSV IRUWXQDWHO\
WKH&DUWHOZLOOEHKHUHVRRQHU
 RI7LOQHV
(QFRXQWHU7KH5HVWRIWKH3DUW\
7KH KHURHV DUH QRW WKH RQO\ RQHV VHQW WR LQYHVWLJDWH WKH
QHZO\FUDVKHGVKLSWKRXJK$VWKH\DUHLQYHVWLJDWLQJWKH
&DQQLEDOL]HUDWURRSRI&DDULWHJXDUGVDSSHDUIURPDIDU
SDVVDJH 7KH KHURHV PD\ HLWKHU SDUOD\ RU ILJKW
XOWLPDWHO\ LW GRHVQ¶W PDWWHU ZKLFK URXWH WKH\ FKRRVH

,PSRUWDQW1RWHWR-XGJHV0RRGLVYHU\LPSRUWDQW
LQ WKLV HYHQW ,W¶V QRW D ³GXQJHRQ FUDZO´ EXW WKHUH DUH
SRLQWV WKDW VKRXOG EH YHU\ WHQVH ZLWK ORWV RI GDUNQHVV
DQG XQFHUWDLQW\ ,W LV DOVR LQIRUPDWLRQKHDY\ DV LW LV
GULYLQJVHYHUDOFRUHVWRU\HOHPHQWVLQWR\HDUWZRRIWKH
VXJJHVWLRQ WKDW WKH PLOLWDU\ PD\ EH UHVSRQVLEOH IRU
PDQ\ RI WKH UHFHQW SUREOHPV LQ WKH V\VWHP DQG WKH
H[LVWHQFHRIKLGGHQFDYHUQVEDVHVDQGVKLSVVRFORVHWR
&XODULQ VKRXOGDOOEHWKLQJVWKH KHURHVHQGXS ZRUULHG
DERXWZKHQWKHHYHQWFRQFOXGHV
 $W VHYHUDO SRLQWV , ZLOO UHIHUHQFH HDUOLHU /LYLQJ
)RUFH HYHQWV :KLOH VRPH VSRLODJH LV LQHYLWDEOH GR
\RXU EHVW QRW WR UXLQ WKH SORWV RI RWKHU HYHQWV IRU
SOD\HUVZKRKDYHQ¶WKDGDFKDQFHWRSOD\WKHP\HW

2SHQLQJ&UDZO
&RPSDQLRQVKLS KDV PDQ\ RULJLQV EXW RQH RI WKH
TXLFNHVWVXUHVWERQGVLVWKHERQGRIDGYHUVLW\)DFLQJ
DQG RYHUFRPLQJ GDQJHU VWUHQJWKHQV QRW RQO\ WKH
LQGLYLGXDO EXW WKH FRPPXQLW\ ,W ZDV WKH FRPPRQ
ERQG RI DGYHUVLW\ WKDW EURXJKW WKH KHURHV RI &XODULQ
WRJHWKHU RQFH PRUH EHQHDWK WKH URFN\ PLQLQJ PRRQ
 $QGWKHQWKHUHZDVWKHH[SORVLRQDQGHYHU\WKLQJ
ZHQWGDUN«


(QFRXQWHU
EHFDXVH WKH\ ZLOO EH VXPPRQHG WR FRQIHUHQFH ZLWK 7KH:D\8QGHUJURXQG
7KXUP/RRJJWKH&DUWHOHQYR\UHJDUGOHVVDQGKH ZLOO
EHQROHVVSROLWHLIWKH\KDYHNLOOHGKLVWURRSVWKDQLIWKH\
ZHUHZLOOLQJWRWDONILUVW2IFRXUVHLW¶VHDV\WREHSROLWH
ZKHQ\RX¶UHEHLQJKRORSURMHFWHGIURPDGLVWDQWRUELWLQJ
VKLS
 KRZ KDUG LW FDQ EH WR EUHDWKH LQ D VWLIOLQJ GDUNQHVV
(QFRXQWHU7KH&UX[RIWKH3UREOHP
$PLOLWDU\EDVHGHHSEHQHDWKWKHVXUIDFHRI7LOQHVKLGHV
D YHU\ UHDO WKUHDW WR WKH FLWL]HQV RI &XODULQ ± DQG
UHSUHVHQWVDYHU\UHDOWUDSWRWKHKHURHV7KH\DUHLQD
ZRUG ZDONLQJ LQWR D PHDW JULQGHU ,I WKH\ IROORZ WKH
GLUHFWLRQVJLYHQWKHPE\ /RRJJWKH\ ZLOO ZDQGHULQWR
.H\ LGHDV RI WKLV HQFRXQWHU JHW WKH SOD\HUV LQWR WKH
HYHQW LQWURGXFH WKH FRUH SUREOHP DQG WKH VHFRQGDU\
SUREOHPV

6WUDQJHKRZLWFDQJHWGDUNVRTXLFNO\6WUDQJHUVWLOO
%XWVWUDQJHVWRIDOOZK\\RXKXUW±DOORYHU\RXUERG\

7KHODVWWKLQJWKHKHURHVUHPHPEHUWKH\ZHUHVLWWLQJLQ
7KH 8QGHUJURXQG D FDQWLQD VRPHZKHUH DURXQG 
PHWHUV EHQHDWK WKH VXUIDFH RI 7LOQHV 7KHQ ZLWKRXW
ZDUQLQJ WKH URRI FDYHG LQ <RX PD\ JLYH ZLVGRP
WKH OLQH RI ILUH RI D SDLU RI HZHE EODVWHU FDQQRQV DQG
JHW XWWHUO\ DQQLKLODWHG +RZHYHU WKHUH LV D GHIHFWRU
DPRQJ WKH 7KDHUHLDQ PLOLWDU\ VRPHRQH ZKR ZDV ERUQ
RQ&XODULQDQGGRHVQ¶W ZDQW WKH1DY\WRSURFHHG ZLWK
LWV SODQV ,I WKH KHURHV GR QRW QRWLFH WKH\ DUH ZDONLQJ

7LOQHV5LVLQJ
FKHFNV '&  WR VHH LI WKH\ UHFDOO KHDULQJ D ORZ
UXPEOLQJMXVWEHIRUHHYHU\WKLQJZHQWGDUN
 (YHU\RQHLVGRZQDQXPEHURIYLWDOLW\SRLQWVHTXDO
WRWKHLUFKDUDFWHUOHYHO,WKXUW±EXWQRWDKXJHDPRXQW
(YHU\RQH LV DOVR XQGHUQHDWK D SLOH RI VWRQH DQG GLUW
 3DJH
IURP ZKLFK WKH\ FDQ H[WULFDWH WKHPVHOYHV ZLWK RQO\ D
OLWWOHZRUN
 N
)URP VRPHZKHUH LQ WKH GLVWDQFH \RX KHDU D
PRDQLQJDQGWKHQDFU\IRUKHOS
 -HGLXVH0RYH2EMHFWWRSLFNXSWKHPDWHULDOVWKDW
7KHVH DUH WKH IRONV ZKR HQGHG XS WUDSSHG EHQHDWK WKH
GHEULV EXW ODFNHG WKH EHQHILW RI KHURLF FODVVHV WR JLYH
WKHP YLWDOLW\ SRLQWV 7KH\ DUH ZRXQGHG VRPH RI WKHP
VHYHUHO\DQGVRPHRQHQHHGVWRDFWIDVWWRJHWWRWKHP
 :KHQ WKH KHURHV SXOO WKHPVHOYHV XS RXW RI WKH N
UXEEOH WKH\ VHH WKDW WKH FDQWLQD LQ ZKLFK WKH\ VDW KDV
EHHQ DOO EXW GHVWUR\HG 7DEOHV OLH EURNHQ RQ WKH IORRU
FKDLUV DUH FUXVKHG DQG YDULRXV OLPEV ± VRPH PRYLQJ
VRPHQRW±VWLFNRXWIURPEHQHDWKRWKHUSLOHVRIGHEULV
$ IHZ RWKHU LQGLYLGXDOV DUH PRYLQJ DURXQG WU\LQJ WR
GLJRXWWKHXQIRUWXQDWHWUDSSHGIRONVDQGDPRQJWKRVH
ZKR DUH KHOSLQJ DUH 6DQ DQG 1LD D SDLU RI \RXQJ
DOO WKH ZKLOH DERXW ³)RROV ZKR GRQ¶W NQRZ KRZ
UHVFXHVZRUN´
6HYHUDOLQGLYLGXDOVDUHWUDSSHGEHQHDWKVHFWLRQVRI
URFN DQG PHWDO IURP WKH VXSSRUW EHDPV /HW WKH
:RRNLHHVDQG7UDQGRVKDQVZRUNRQWKLVRUOHWWKH
DUH FUXVKLQJ WKH KDSOHVV YLFWLPV 7UHDW ,QMXU\
FKHFNV DV DSSURSULDWH 0DULV KDV D VPDOO VWRFN RI
ILYHPHGSDFVEHKLQGWKHEDUZKLFKKHSURYLGHVIRU
WKHPRVWVHULRXVLQMXULHVRWKHUWKDQKLVRZQ
$ UDWKHU UHVLJQHGORRNLQJ SURWRFRO GURLG ZKR LV
XQKDSSLO\ WU\LQJ WR ILW KLV OHIW DUP EDFN LQWR LWV
VRFNHW +H NHHSV PXUPXULQJ ³1RW DJDLQ 1RW WKH
OHIW DUP :K\ LV LW DOZD\V WKH OHIW DUP"´ 7KLV 6
4' WKH RQO\ GURLG ZKR VWD\V RQ 7LOQHV
WKURXJKRXW WKH \HDU 7KH HQHUJ\ SXOVHV VKXW KLP
GRZQ UHJXODUO\ DQG KH LV YHU\ FXULRXV ZK\ DQ\
KHURHVZKRRZQGURLGVZRXOGEULQJWKHPDORQJWR
LGHDOLVWLF KXPDQ )RUFH $GHSWV ZKRP WKH KHURHV KDYH
HQFRXQWHUHG LI WKH\ SOD\HG HLWKHU ³7KH 5HVLVWDQFH
:LWKLQ´RU³6RPHWKLQJ8IIHO´
 2QFH HYHU\RQH KDV GXJ WKHPVHOYHV RXW RI WKH
UXEEOHKDYHWKHPGHVFULEHWKHPVHOYHVDQGGRZKDWHYHU
LQWURGXFWLRQV DUH QHFHVVDU\ ,W LV ILQH IRU WKHP WR KDYH
FRPH WR 7LOQHV DV D JURXS LI WKH\ OLNH LQ ZKLFK FDVH
WKH GHVFULSWLRQV ZLOO EH RI PRUH EHQHILW WR \RX WKDQ WR
WKHP
7LOQHV DQG ZRUNLQJ DURXQG KHDY\ PLQLQJ
HTXLSPHQW KH VRPHWLPHV ORVHV DQ DUP RU D OHJ
7KH QLFH WKLQJ DERXW EHLQJ D GURLG LV WKDW FDQ EH
IL[HGIDLUO\HDVLO\,W¶VMXVWDZNZDUGWRGRKLPVHOI
5HDWWDFKLQJ KLV DUP UHTXLUHV D '&  UHSDLU
FKHFN ,I WKH\ GR QRW PDNH D  KH LV YHU\
WKDQNIXO DQG KROG KLV DUP LQ SODFH XQWLO WKH\ WXUQ
WKHLU EDFNV DW ZKLFK SRLQW KH UHPRYHV LW KLPVHOI
DQGVWDUWVWKHZRUNRYHUDJDLQ<RXPD\JLYHVSRW
 6DQ DQG 1LD DUH ERWK IUDQWLFDOO\ WU\LQJ WR GLJ
SHRSOH RXW DQG ZHOFRPH DQ\ KHOS WKH\ FDQ JHW 7KH\
KDG MXVW HQWHUHG 7KH 8QGHUJURXQG ZKHQ WKH FHLOLQJ
JDYHZD\DQGPDQDJHGWRGXFNEDFNLQWRWKHGRRUZD\
WRNHHSIURPJHWWLQJWKHFHLOLQJGURSSHGRQWKHLUKHDGV
,IWKHKHURHVKDYHKDGIULHQGO\LQWHUDFWLRQVZLWKWKHPLQ
WKHSDVWWKDWLVGLGQ¶WWU\UHDOO\KDUGWRNLOOWKHPDWWKH
FKHFNV'&WRQRWLFHWKLV

7KHUHDUHDWRWDORILQGLYLGXDOVLQ7KH8QGHUJURXQG
2I WKHVH DERXW ILIWHHQ QHHG WR UHVW IRU TXLWH D ZKLOH
EHIRUHJRLQJDQ\ZKHUH2IWKHUHVWWKHUHDUHWKHKHURHV
6DQ DQG 1LD D KHDOWK\VL]HG :RRNLHH ZLWK SDWFK\
EURZQDQGWDQ IXU QDPHG 8OXFFD DQG D IDLUO\ PHHN
HQG RI ³6RPHWKLQJ 8IIHO´ 6DQ DQG 1LD DUH H[WUHPHO\ 6XOOXVWDQ IHPDOH QDPHG 7HEDUL ZLWK D EODVWHU ULIOH
IULHQGO\7KH\IDQF\WKHPVHOYHVWREHWZRRIWKHKHURHV VWUDSSHGWRKHUEDFN
RI&XODULQDQGHQMR\ZRUNLQJZLWKRWKHUKHURHV  6R WKDW WKLQJV GRQ¶W JHW RII WR WRR VORZ RI D VWDUW
 DIWHU D PD[LPXP RI WHQ PLQXWHV UHDOWLPH UROHSOD\LQJ
7KHUHDUHVHYHUDOFKDOOHQJHV DPLGVWWKHUXEEOHWKDWWKH ZLWK WKH EXOOHWL]HG LQGLYLGXDOV DERYH SURFHHG WR WKH
KHURHVPXVWKHOSWRGHDOZLWK IROORZLQJ *LYH OLVWHQ FKHFNV '&  KHDU IRRWVWHSV
 UXQQLQJ GRZQ RQH RI WKH FRUULGRUV WRZDUG 7KH
N $ \RXQJ 7UDQGRVKDQ PDOH FRZHUV DJDLQVW RQH 8QGHUJURXQG
ZDOO VKDNLQJ LQ WHUURU +H FRXOG EH YHU\ XVHIXO ± 
KH¶V REYLRXVO\ TXLWH VWURQJ ± LI FRQYLQFHG WR KHOS $Q DWWUDFWLYH \RXQJ ZRPDQ UXVKHV LQWR WKH FDQWLQD
RXWEXWULJKWQRZKHZDQWVWRFRZHUDQGZKLPSHU JDVSLQJ IRU EUHDWK $W OHDVW \RX¶UH SUHWW\ VXUH VKH¶G
+H UHVSRQGV WR HLWKHU FDMROLQJ GLSORPDF\ RU EH DWWUDFWLYH LI KHU KDLU ZHUHQ¶W PHVVLHU WKDQ D
LQWLPLGDWLRQ SDUWLFXODUO\ IURP DQRWKHU P\QRFN¶V QHVW DQG KHU IDFH ZHUHQ¶W FDNHG ZLWK GLUW
7UDQGRVKDQ 'RQ¶W ZRUU\ DERXW '&V JR IRU
UROHSOD\LQJ
N $ YHU\ DQJU\ 5RGLDQ LV EDUNLQJ RUGHUV DQG QRW
KDYLQJPXFKOXFNJHWWLQJSHRSOHWRSD\DWWHQWLRQWR
KLP 7KLV LV 0DULV *HQ RZQHU RI 7KH
8QGHUJURXQG +H LV IUHHO\ EOHHGLQJ IURP D ZRXQG
WRKLVKHDGDQGHYHQWXDOO\OLVWHQVWRUHDVRQDQGVLWV
GRZQ WR OHW VRPHRQH WHQG KLV ZRXQGV JUXPEOLQJ

7LOQHV5LVLQJ
DQG GXVW 6KH ORRNV DURXQG DQG VSRWV 6DQ DQG 1LD
WKHQ UXVKHV WRZDUG WKHP DQG WULSV RYHU D SLHFH RI
FHLOLQJ

7KH KHURHV DUH ZHOFRPH WR KHOS KHU EDFN WR KHU IHHW
6DQ DQG 1LD FRPH WR VSHDN WR KHU DV ZHOO 7KLV LV
3KLOLQGD RQH RI 6DQ DQG 1LD¶V FRPSDQLRQV IURP
³6RPHWKLQJ 8IIHO´ D \RXQJ QREOH ZKR LV WU\LQJ YHU\
 3DJH
KDUGWRGRZKDW¶VULJKW$WWKHPRPHQWVKH¶VVFDUHGRXW  ,I WKH KHURHV ZHQW D GLIIHUHQW GLUHFWLRQ WKDQ 6DQ
RIKHUPLQG DQG1LD¶VJURXS\RXVKRXOGVNLSWKHILUVWSDUDJUDSKRI
 ER[WH[WEHORZ+RZHYHU\RXVKRXOGPDNHFHUWDLQWKDW
³6VVRPHWKLQJ KLW WKWKWKH VXUIDFH , ZDV WKWK LI WKLV KDSSHQV 6DQ DQG 1LD KDYH H[FKDQJHG FRPOLQN
WKHUH VDZ LW FRPH GRZQ %LJ URFNV DQG WKHQ HYHY FRGHVZLWKWKHKHURHVVRWKDWFRQWDFWFDQEHPDLQWDLQHG
HYHYHU\WKLQJZDVIDOOLQJDQGWKHFHLOLQJZDVIDOOLQJ  1RWHWKDWHYHU\ILIW\PHWHUVRUVRLVDQHPHUJHQF\
DQG DQG , UDQ DQG WKHUH ZHUH ORWV RI KROHV DQG , PHGLFDO VWDWLRQ 7KHVH SURYLGH VXIILFLHQW PHGSDNV WKDW
NQHZ\RX¶GEHKHUHDQGLW¶VUHDOO\EDGRXWWKHUH´ DOOWKHQHHGVRIWKHLQMXUHGFDQEHPHWDORQJZLWKORDGV
 RI EDQGDJHV EXW WKH\ GR 127 SURYLGH ORRW IRU WKH
3KLOLQGD SDVVHG VHYHUDO GHHS SLWV WKDW SUREDEO\ OHG KHURHVWRNHHS,QRWKHUZRUGVQR7KH\FDQQRWORDGXS
GRZQGHHSHULQWRWKH PLQHV EXW ZKLFK ZHUHQ¶WSDUWRI RQPHGSDNVDQGNHHSWKHPDOO
WKH VWDQGDUG PLQH VKDIWV 6KH VDZ VHYHUDO ZDOOV 
FROODSVH WKH FHLOLQJ EHKLQG KHU NHSW FDYLQJ LQ DQG ,IWKH+HURHV*RZLWK6DQDQG1LD¶V*URXS
ZRUVW RI DOO VKH FRXOG KHDU SHRSOH WUDSSHG LQ WKH 7KHWXQQHOZLQGVVORZO\XSZDUGDQGDV\RXZDONWKH
GHHSHU VHFWLRQV RI WKH FU\VWDO PLQHV EHFDXVH WKDW LV GXVW JURZV WKLFN LQ WKH DLU $IWHU D KXQGUHG PHWHUV
DIWHUDOOZKDW7LOQHVLVIDPRXVIRUFDOOLQJIRUKHOS
 8SRQ KHDULQJ WKDW WKHUH DUH LQGLYLGXDOV WUDSSHG LQ
WKH PLQHV 1LD KHOSV 3KLOLQGD WR KHU IHHW WKHQ WXUQV WR
WKHKHURHV
 
³6RXQGVOLNHWKHUHDUHSHRSOHZKRQHHGKHOS<RXIHHO
XSWRWKHWDVN"´
 RUDOOWKHZD\WKURXJK7KHUHDUHDSSDUHQWFKRLFHVEXW
7KH LQGLYLGXDOV LQ 7KH 8QGHUJURXQG ZLOO EH ILQH
ZLWKRXWWKHKHURHVWRWHQGWKHP0DULVLVIHHOLQJEHWWHU
DQG KDV VWDUWHG EUHDNLQJ RXW ³QHFHVVDU\ IOXLGV´ IRU KLV
JXHVWV +H NQRZV ZKDW WKH UHVSRQVH WLPH VKRXOG EH
IURPWKHPLQLQJFRPSDQLHVWKHIRONVLQWKHFDQWLQDZLOO
EH MXVW ILQH IRU WKH WHQ RU VR KRXUV LW ZLOO WDNH VXUIDFH
SDUWLHV WR JHW KHUH ³,W¶V QRW´ KH VD\V LQ VRPHZKDW
DZNZDUG%DVLF³OLNHWKLVLVQ¶WVRPHWKLQJWKH\SODQIRU
,W¶VDPLQLQJFRPSOH[DIWHUDOO´
 7KHUHLVRQO\RQHPDLQWXQQHOOHDGLQJRXWPDQ\RI
WKH RWKHUV FROODSVHG QHDU WKH HQWUDQFH WR 7KH
8QGHUJURXQG
 0DQ\JURXSVPD\FKRRVHWRJRZLWK6DQDQG1LD
DQGXOWLPDWHO\VHSDUDWHIURPWKHP,IDJURXSGHFLGHVWR
GLJ WKURXJK RQH RI WKH FROODSVHG WXQQHOV WR ILQG IRONV
\RXUHDFKDIRUN2QHSDWKOHDGVRIIWRWKHULJKWDQG
RQHWRWKHOHIW
 1LDWXUQVWR\RX³/RRNVOLNHWKLVLVZKHUHZHVSOLW
XS:KLFKZD\GR\RXZDQWWRJR"´
,WGRHVQ¶W PDWWHU ZKLFK ZD\WKHKHURHVFKRRVHWKHUH¶V
UHDOO\RQO\RQHSDWKIRUWKHPDWWKLVSRLQWLQWKHHYHQW
LQWKHHQGHDFKHQFRXQWHUEXLOGVRQWKH QH[WDQG ZLOO
QHHGWRKDSSHQLQWKHRUGHUZULWWHQ
 ,Q RWKHU ZRUGV ZKLFKHYHU ZD\ WKH KHURHV FKRRVH
OHDGVWKHPWRWKHHQFRXQWHUZKLOH6DQDQG1LD¶VJURXS
ZLOOEHGRLQJUHVFXHZRUNRIWKHLURZQ

<RX KHDG RII GRZQ WKH ZLQGLQJ WXQQHO JORZ URGV
OLJKWLQJ \RXU ZD\ 7KH WXQQHO VHHPV WR EH DLPHG
WRZDUGWKHVXUIDFHEXWWKHQLWWDNHVDGRZQZDUGWXUQ
DQG\RX¶UHKHDGHGEDFNLQWRWKHGHSWKVRI7LOQHVRQFH
PRUH

0DNHVXUH\RXKDYHDPDUFKLQJRUGHUDWWKLVSRLQW7KH
WXQQHO LV ZLGH HQRXJK IRU WKUHH WR ZDON DEUHDVW 7KH
LQGLYLGXDOVLQWKHIURQWRIWKHJURXSQHHGWRPDNHVSRW
ZKR PLJKW EH WUDSSHG WKHUH WKDW¶V ILQH -XVW NHHS WKH FKHFNV'&LQORZHUWLHUZKLOHHYHU\RQHQHHGV
JURXS WRJHWKHU 6DQ DQG 1LD ZLOO PDNH VXUH HYHU\RQH WRPDNHOLVWHQFKHFNV'&7KHVSRWFKHFNVDUH
XQGHUVWDQGV WKH QHFHVVLW\ RI QXPEHUV LQ VLWXDWLRQV OLNH WRQRWLFHWKHODUJHKROHLQWKHIORRURIWKHWXQQHODKHDG
WKLV7KH\ZLOOEHZRUNLQJZLWK3KLOLQGDWKH:RRNLHH RIWKHPEHIRUHWKH\ZDONLQWRLW,IDOORIWKHIURQWUDQN
DQGWKH6XOOXVWDQDQGUHFRPPHQGWKDWWKHKHURHVZRUN IDLOVWKHUH¶VQRUHDVRQWRGURSWKHPGRZQWKHSLWXQOHVV
DVDXQLW WKH ZKROH VHFRQG UDQN GRHVQ¶W QRWLFH WKDW VRPHRQH LV
 DERXW WR IDOO 8VH ZKDWHYHU FKHFNV DQG '&V \RX ILQG
 QHFHVVDU\LQRUGHUWRJLYHHYHU\RQHDKHURLFFKDQFHRI
VXUYLYDO
(QFRXQWHU  7KH OLVWHQ FKHFNV DUH WR KHDU D FKLWWHULQJ QRLVH
7KH3LWDQGWKH3DUDVLWHV IURPWKHSLW,WLVYDJXHO\LQVHFWOLNHDQGLWVRXQGVOLNH
WKHUHDUHORWVRIZKDWHYHULWLVGRZQWKHUH7KHUHDUHQR
.H\ LGHDV RI WKLV HQFRXQWHU ORFDWH DQ LQGLYLGXDO VNLOOV WKDW KHOS ZLWK LGHQWLI\LQJ WKH QRLVH PRUH
WUDSSHGDWWKHERWWRPRIDSLWXQFRQVFLRXVDERXWWREH VSHFLILFDOO\XQOHVVVRPHRQHKDVERWKHUHGWRWDNHUDQNV
VZDUPHG E\ VXEWHUUDQHDQ SDUDVLWV UHVFXH WKH LQ .QRZOHGJH 6XEWHUUDQHDQ 3DUDVLWHV LQ ZKLFK FDVH
LQGLYLGXDODQGSURFHHGGHHSHULQWRWKHPLQHV WKH\UHDOO\RXJKWWREHUHZDUGHGIRUSLFNLQJXSUDQNVLQ
 VXFK D XVHOHVV VNLOO 1R UROO LV QHFHVVDU\ IRU WKHP WR


7LOQHV5LVLQJ  3DJH
LGHQWLI\ WKH GLVWLQFWLYH VRXQG RI DUDVN EHHWOHV VWDONLQJ RQFHVRPHRQHLVGRZQWKHUHFRQVFLRXVDQGVKRRWLQJDW
WKHLUSUH\ WKHPRURWKHUZLVHFRQYLQFLQJWKHPWROHDYH
  2QFH WKH KHURHV DUH GRZQ WKH\ FDQ VHH WKDW WKH
2Q WKH IDU VLGH RI WKH SLW WKH WXQQHO KDV FROODSVHG DUDVN EHHWOHV KDYH JRQH LQWR KLGLQJ EHQHDWK WKH FUDFNV
VHDOLQJ RII WKLV H[LW URXWH +RZHYHU DV \RX H[DPLQH LQ WKH ZDOOV DQG WKDW DQRWKHU WXQQHO OHDGV RII LQ WKH
WKHSLWHVFDSHVHHPVOHVVLPSRUWDQW$WWKHERWWRPRI GLUHFWLRQ WKH\¶G EHHQ JRLQJ EXW GHHSHU VWLOO LQWR WKH
WKHSLWLVDVKLQ\VWLFN±DJORZURG$GDUNVKDSHOLHV PLQHV
ZLWKLWVEDFNWRWKHJORZURGFXUOHGXSLQDIHWDOEDOO  7KH XQFRQVFLRXV ERG\ KXGGOHG DJDLQVW WKH ZDOO LV
QRW PRYLQJ ,W ORRNV YDJXHO\ KXPDQRLG DQG WKH DFWXDOO\ SDUWO\ SLQQHG ,W UHTXLUHV HLWKHU D '& 
VKDGRZVVHHPWREHPRYLQJWRZDUGVLW VWUHQJWK FKHFN RU D '&  PRYH REMHFW FKHFN WR
 FOHDU WKH UXEEOH RII WKH KDSOHVV LQGLYLGXDO ZKR WXUQV
$UDVN%HHWOHVKXQGUHGV3DUDVLWH,QLW'HIHQVH RXW WR EH D &DDULWH +H ZHDUV D &DUWHO XQLIRUP DQG LV
VL]HQDWXUDO6SGPFOLPEP93:3 XQDUPHG +H LV VHYHUHO\ LQMXUHG DQG ZLOO GLH ZLWKRXW
 $WN  PHOHH G ELWH 64 EOLQGVLJKW VFHQW 69 WUHDWPHQW$'&7UHDW,QMXU\FKHFNUHYHDOVWKLVWREH
)RUW  5HI  :LOO  6= 0 5HS  )3  6WU  WKH FDVH WUDQVODWLRQ KH LV DW ]HUR ZRXQG SRLQWV DQG
'H[&RQ,QW:LV&KD KDV WKXV IDU PDGH KLV IRUWLWXGH VDYHV EXW WKDW ZRQ¶W
 6NLOOV&OLPE ODVW $UPHG ZLWK WKLV NQRZOHGJH DQ\ KHURHV ZKR
 ZLOOLQJO\OHDYHKLPWRGLHVKRXOGEHZDUQHGWKDWWKLVLV
7KHDUDVNEHHWOHV KDYHIRXQGDFKRLFH PRUVHO±EDUHO\ DQHYLODFWDQGLIWKH\SHUVLVWVKRXOGEHJLYHQGDUNVLGH
DOLYHXQDEOHWRGHIHQGLWVHOIDQGVWLOOQLFHDQGZDUP,W SRLQWV +RSHIXOO\ WKH JURXSV ZLOO HLWKHU FDOO 6DQ DQG
DOVR KDSSHQV WR EH D &DDULWH WKRXJK WKLV FDQQRW EH 1LDWRFRPHWDNHWKH&DDULWHEDFNWR7KH8QGHUJURXQG
GHWHUPLQHGIURPDERYHVLQFHWKHKHURHVDUHPHWHUV RUWDNHKLPWKHPVHOYHVWKRXJKLW¶VYHU\GLIILFXOWWRJHW
XS IURP WKH ERWWRP RI WKH SLW DQG WKH &DDULWH LV EDFNRXWRIWKLVSLWLIWKHHQWLUHSDUW\LVDOUHDG\GRZQDW
ZHDULQJGDUNFORWKLQJZLWKDQDOOZHDWKHUFORDNSXOOHG WKHERWWRPDQGLW¶VSUREDEO\HDVLHUWRMXVWFDOOIRU6DQ
XSDURXQGLWVKHDGREVFXULQJDOORILWVIHDWXUHV,WGRHV
WZLWFK HYHU\ RQFH LQ D ZKLOH DQG GHWHUPLQHG KHURHV
FDQILQGWKDWPXFKRXWEHIRUHSODQQLQJKRZWRJHWGRZQ
WKHUH
 1RZPHWHUVLVDORQJZD\$ERXWGZRUWKRI
ORQJ ZD\ '&  UHIOH[ VDYH WR DSSO\ WKH GDPDJH WR
YLWDOLW\ SRLQWV UDWKHU WKDQ ZRXQG SRLQWV VWDQGDUG UXOHV
IRU WXPEOLQJ DSSO\ ,Q RWKHU ZRUGV LW¶V D EDG LGHD WR
MXVWMXPSGRZQWKHKROH7KH\QHHGWREHFUHDWLYH
DQG 1LD DW WKDW SRLQW 1R RQH NQRZV ZK\ D &DUWHO
UHSUHVHQWDWLYH ZRXOG EH LQ WKH PLQHV EXW QR RQH LV DOO
WKDWVXUSULVHGHLWKHU9HUJD0HU0LQLQJ&RPSDQ\WKH
LQGLYLGXDOV ZKRRZQ PRVWRI7LOQHVKDYHDUHSXWDWLRQ
IRU GHDOLQJ ZLWK DQ\RQH WR PDNH D TXLFN FUHGLW 7KH
&DDULWH LI KHDOHG GRHV QRW DZDNHQ +LV ERG\ QHHGV
WLPH WR UHFRYHU ,W LV DOVR SRVVLEOH WKRXJK QRW
UHFRPPHQGHG WR FDUU\ WKH GHDG ZHLJKW RI WKH &DDULWH
WKURXJKRXW WKH UHVW RI WKH HYHQW DQG WXUQ KLP RYHU WR
 7KHUH LV D JRRG DPRXQW RI EURNHQ PDFKLQHU\ LQ
WKLV SDUW RI WKH PLQH DQG LI WKHUH¶V VRPHWKLQJ WKH\¶UH
ORRNLQJ IRU WKH\ FDQ SUREDEO\ ILQG LW 7KHUH DUH D
FRXSOH RI EURNHQ PLQLQJ VOHGV WKDW FDQ SURYLGH SDUWV
DQG LI WKH KHURHV DUH MXVW ZRHIXOO\ XQSUHSDUHG RQH RI
WKHEURNHQ VOHGVFDQFRQWDLQ KHDY\GXW\ OLTXLGFDEOH
GLVSHQVHUV ZKLFK RQO\ ZRUN XQWLO WKH HQG RI WKH HYHQW
DWZKLFKSRLQWWKH\UXQRXWRIFDEOH)LQGLQJWKHVHGRHV
UHTXLUHD'&VHDUFKFKHFNEXWDJDLQRQO\GRWKLV
LIWKH\UHDOO\FDQ¶WSURFHHGDQ\RWKHUZD\

$V \RX EHJLQ WR GHVFHQG LQWR WKH SLW WKH FKLWWHULQJ
IURPEHORZJURZVORXGHU

7KH EHHWOHV VHH RWKHU SRWHQWLDO IRRG VRXUFHV FRPLQJ
DQG DUH JHWWLQJ H[FLWHG +RZHYHU WKH\¶UH QRW YHU\
EUDYH DQG UXQ IRU FRYHU LI DQ\RQH ILUHV D EODVWHU DW
WKHPRUGRHVDQ\WKLQJHOVH\RXWKLQNZRXOGUHDVRQDEO\
VFDUH VHYHUDO KXQGUHG SDUDVLWHV DZD\ +DYH D FRXSOH
DURXQG DW WKH ERWWRP ZKHQ WKH ILUVW LQGLYLGXDOV UHDFK
WKH ERWWRP UHJDUGOHVV LI IRU QR RWKHU UHDVRQ WKDQ
EHFDXVHFPORQJEHHWOHVZLWKVLOYHU\EODFNH\HVWDONV
DUH MXVW NLQG RI VFDU\ ORRNLQJ $OO RI WKHP UXQ DZD\

7LOQHV5LVLQJ
WKH&DUWHOZKHQWKHWLPHFRPHV
 7KH KHURHV PD\ ZDQW WR H[SORUH WKH WXQQHO WKDW
OHDGVDZD\IURPWKHDUHDZKHUHWKH\IRXQGWKH&DDULWH
RU WKH\ PD\ ZDQW WR JR EDFN WR 7KH 8QGHUJURXQG DQG
WU\DGLIIHUHQWWXQQHO,WPDWWHUVQRWZKLFKZD\WKH\JR
EHFDXVH HLWKHU ZD\ WDNHV WKHP WR HQFRXQWHU  DQG WKH
RWKHUZD\LIWKH\JREDFNDQGFKHFNODWHUZRXOGKDYH
OHGWKHPWRDGHDGHQG


(QFRXQWHU
7KH'DUN%H\RQG

.H\ LGHD RI WKLV HQFRXQWHU PRUH H[SORUDWLRQ RI WKH
ORZHU VHFWLRQV RI WKH PLQHV VHDUFKLQJ IRU WUDSSHG
LQGLYLGXDOV XQFRYHULQJ FOXHV WKDW WKHUH PD\ EH PRUH
WKDQPLQHUVGRZQKHUHILQGLQJDQHYHQGHHSHUVHFWLRQ
RIWKHPLQHV

2QFHWKHKHURHVKDYHGHDOWZLWKWKH&DDULWH±HLWKHUE\
FDOOLQJ 6DQ DQG 1LD RU WDNLQJ KLP EDFN WR 7KH
 3DJH
8QGHUJURXQGWKHPVHOYHV±WKH\KHDUVRPHWKLQJFRPLQJ
IURP WKH WXQQHO OHDGLQJ DZD\ IURP ZKHUH WKH &DDULWH
KDGIDOOHQ7KHVRXQGLVDKLJKSLWFKHG ZDLOLQJ ZKLFK
LVDFWXDOO\DOPRVWSDLQIXOWR:RRNLHHHDUV,W¶VSUREDEO\
QRWKXPDQEXWLWVRXQGVOLNHVRPHRQH±RUVRPHWKLQJ±
WKDW LV KXUW DQG DIUDLG ,W¶V IDLUO\ GLVWDQW EXW WKHUH¶V
UHDOO\RQO\RQHZD\WRJRIURPWKLVFDYHUQ
 ,ISOD\HUVFKRRVHWRLJQRUHWKLVFOXHDQGZDQWWRJR
VRPHZKHUH HOVH ± ILQH 7KH\ HYHQWXDOO\ ZDQGHU LQWR
WKLVHQFRXQWHUUHJDUGOHVV%XWPDNHVXUH\RXGRFNWKHP
KHDYLO\ EXW WKH IDU ZDOO VWLOO RQ D '&  VSRW FKHFN
VKRZVWUDFHDPRXQWVRIVHYHUDOFRORUIXOFU\VWDOVSUHVHQW
LQLWVVWUDWD
 1RWH7KHVHFU\VWDOVEHFDXVHWKH\DUHLQWKHPLQHV
DUH WKH SURSHUW\ RI 900& $Q\ KHUR ZKR VWDWHV WKDW
WKH\ DUH JRLQJ WR WDNH VRPH IRU WKHPVHOYHV VKRXOG EH
UHPLQGHGWKDWWKLVLVVWHDOLQJWKDWVWHDOLQJLVDUHVXOWRI
JUHHGWKDWJUHHGLVWKHSDWKWRWKHGDUNVLGHDQGWKDWLI
WKH\LQVLVWRQWU\LQJWRVWHDOWKHFU\VWDOVWKH\ZLOOJHWD
GDUNVLGHSRLQW7KHIDFWLVWKH\ODFNWKHSURSHUWRROVWR
H[SHULHQFH  [S IRU QRW JRLQJ WR LQYHVWLJDWH
VRPHWKLQJWKDWVRXQGVOLNHLWQHHGVKHOSLQWKHZDNHRI
VXFKDPDMRUDFFLGHQW
 DQGDGDUNVLGHSRLQWWRERRW
7KH WXQQHO EHJLQV DW D JUDGXDO GRZQZDUG VORSH
ZKLFK JURZV VWHDGLO\ VWHHSHU 7KH URFN RI WKH WXQQHO
ZDOOV VHHPV WR KDYH EHHQ ORRVHQHG E\ WKH LPSDFWV RQ
WKH PRRQ¶V VXUIDFH DQG VPDOO FKXQNV RI GLUW DQG
VWRQHIDOOWRWKHIORRUDV\RXZDONSDVW
 )URPVRPHZKHUHDKHDGRI\RXDORZPRDQLQJ±
VRPHWKLQJLQSDLQ±UHDFKHV\RXUHDUV
 
,IWKH\VWDUWWRWXUQDURXQGDQGJREDFNDWWKLVSRLQWWKH
FHLOLQJFDYHVLQDERXWWKLUW\PHWHUVEHKLQGWKHP7KLVLV
WKHZRUNRIWKH\ULZRUPVDKDOIGR]HQRIZKLFKKDYH
EHHQ WUDLOLQJ WKH KHURHV IROORZLQJ EHQHDWK WKHP
WKURXJK WKH URFN DQG ZKRVH SUHVHQFH KDV ILQDOO\
EURXJKWDQRWKHUVHFWLRQRIWXQQHOFUDVKLQJGRZQ*RLQJ
EDFN WKURXJK WKH FDYHLQ ZRXOG WDNH KRXUV WR FOHDU
HYHU\WKLQJDZD\ELJKXQNVRIURFNKDYHDQDZIXOORWRI
ZRXQG SRLQWV HYHQ IRU D OLJKWVDEHU WR JHW WKURXJK ZH
UHPRYH XVHDEOH FU\VWDOV IURP WKH FDYH ZDOO VR ZKLOH
WKH\ PD\ EH DEOH WR H[WUDFW FKXQNV RI FU\VWDO WKH\
ZRQ¶W JHW DQ\WKLQJ XVHIXO 7KH\¶OO MXVW JHW VRXYHQLUV
 7KHPRUHLPSRUWDQWHOHPHQW RIWKLVORFDWLRQLVWKH
ZDOOWKDWKDVDOUHDG\EHHQFOHDUHGRILWVFU\VWDOV

$V \RX VWDQG ORRNLQJ DERXW WKH FDYHUQ \RX QRWLFH
VHYHUDO VSODVKHV RI FRORU RQ WKH ULJKWKDQG ZDOO
/RRNLQJ PRUH FORVHO\ \RX VHH WKDW VRPHRQH KDV
SDLQWHGWKHZDOO±VRPHWLPHDJRDQGYHU\FDUHIXOO\
,Q WKH FHQWHU RI WKH ZDOO LV D KXJH \HOORZ VWDU
ZLWK UHG DQG EOXH OLQHV OHDGLQJ DZD\ IURP LW ILUVW WR
WZR VOLJKWO\ VPDOOHU EOXHZKLWH VWDUV DQG IURP WKRVH
WRDWULRRIZKLWHVWDUV QHDUWKHHGJHVRIWKHZDOO$Q
HQRUPRXVH\HVWDUHVIURPWKHFHQWHURIWKH\HOORZVWDU

7KLV LV LQ IDFW D QHDUGXSOLFDWH RI WKH PXUDO WKDW
GHFRUDWHG -D[ :DUHKRXVH LQ ³7KH 5HVLVWDQFH :LWKLQ´
DQGDQ\KHURZKRSOD\HGWKDWHYHQWVKRXOGUHFRJQL]HLW
LI WKH\ PDGH LW WR WKDW HQFRXQWHU DQG QRW DOO JURXSV
ZRQ¶WERWKHUSURYLGLQJVWDWVIRUWKHPMXVWPDNHLWFOHDU GLG
WKDW WKHUH¶V QR JRRG ZD\ WR GR LW DQG LW VRXQGV OLNH  7KHNH\IDFWWKDWDQ\RQHZLWKDQ\IRUPRI&XODULQ
ZKDWHYHU¶V GRZQ WKH WXQQHO LV LQ D JUHDW GHDO RI SDLQ ORUH VKRXOG UHFRJQL]H RU DQ\RQH ZKR¶V OLYHG LQ WKH
DQGPD\EHG\LQJDQG6DQDQG1LDDUHEXV\UHVFXLQJD V\VWHP PRUH WKDQ WZR \HDUV 7KH ODUJH \HOORZ VXQ
ZRUNFUHZDQGFDQ¶WFRPHWRKHOSWKHPRXW FOHDUO\UHSUHVHQWV0RUDVLOWKHODUJHURIWKHWZRVXQVRI
 ,I WKH\ GHFLGH WR FKHFN DQG VHH LI WKHUH DUH OLIH WKH &XODULQ V\VWHP 7HUPDGXV WKH VPDOOHU RI WKH VXQV
IRUPV DKHDG RQFH WKH\ DUH LQ UDQJH IRU 6HH )RUFH  LVDEVHQWRQWKLVPXUDO±MXVWDVLWZDVRQWKHPXUDOLQ
PHWHUVWKHUHDUHOLIHIRUPV±VHYHUDO2IFRXUVHWKH\UL ³7KH5HVLVWDQFH:LWKLQ´
ZRUPVDUHVWD\LQJSUHWW\FORVHWRXQGHUQHDWKWKHSDUW\  7KHUH LV RQH LPSRUWDQW GLIIHUHQFH EHWZHHQ WKLV
EXW RQO\ EHFDXVH WKH\¶UH FXULRXV 7KH\ RQO\ DWWDFN LI PXUDODQGWKHRQHLQWKHHDUOLHUHYHQW7KLVRQHLQFOXGHV
DWWDFNHGILUVW DVPDOODPRXQWRIWH[WFDUYHGLQWRWKHURFNRQWKHIORRU
 EHIRUHWKHPXUDO,WUHTXLUHVD'&VSRWFKHFNRU
<UL ZRUP 6XEWHUUDQHDQ VFDYHQJHU  ,QLW  'H[ LI QR RQH PDNHV WKDW VRPHRQH UDQGRPO\ WULSSLQJ RYHU
'HIHQVH   QDWXUDO  GH[ 6SG P EXUURZ LWIRUWKHSDUW\WRILQGWKLVWH[W,WLVZULWWHQLQ7ZL¶OHN
WKURXJK URFN P 93:3  $WN  PHOHH ± VR KHUH¶V KRSLQJ \RX KDYH D OLQJXLVW RU D WUDQVODWRU
GELWHUDQJHG69)RUW5HI:LOO GURLGLQWKHJURXS
6=05HS6WU'H[&RQ,QW:LV&KD  ,IQRWWKHUHLVDUHVLGXDO)RUFHHIIHFWKHUH$Q\RQH
&KDOOHQJH&RGH% ZKR VWXGLHV WKH FDUYLQJV RI WKH ZRUGV ORQJ HQRXJK
 6NLOOV+LGH0RYH6LOHQWO\ EHJLQV WR XQGHUVWDQG WKHP 7KH ILUVW URXQG WKH ZULWLQJ
 LVVWXGLHGE\VRPHRQHZKRFDQQRWVSHDN7ZL¶OHNWKH\
$IWHU D VKRUW ZKLOH WKH WXQQHO RSHQV RXW LQWR D ODUJH
QDWXUDOFDYHUQ7KHPRDQLQJ VHHPVWREHFRPLQJIURP
HYHU\ZKHUH DW RQFH LW¶V KDUG WR LVRODWH EHFDXVH RI WKH
FDYHUQ¶V DFRXVWLFV 2QH ZDOO RI WKH FDYHUQ KDV
REYLRXVO\ EHHQ VWULSSHG RI DOO LWV FU\VWDOV PLQHG TXLWH

7LOQHV5LVLQJ
PXVW PDNH D :LOO VDYH '&  0DNLQJ WKH VDYH
PHDQVWKH\FDQXQGHUVWDQGWKHWH[W)DLOLQJLWWKH\IHHO
OLNHWKH\DOPRVWKDGDIODVKRILQVLJKWDQGWKHQORVWLW
)RUHYHU\URXQGWKH\VWXG\WKHWH[WWKH'&JRHVGRZQ
E\WHQ±VRLQURXQGLW¶VD'&ZLOOVDYHURXQG
 3DJH
'&URXQG'&DQGURXQGVDQGEH\RQG'&
 (YHQWXDOO\ VRPHRQH VKRXOG EH DEOH WR UHDG LW ,W
VD\V ³$ GD\ ZLOO FRPH ZKHQ GDUNQHVV WKUHDWHQV
&XODULQ7KHGDUNQHVVZLOOEHJLQZLWKLQWKHFRQILQHVRI
WKLVPRRQDQGZLOOULVHWRHQFRPSDVVDOORIWKHV\VWHP
DQG WKH VWDUV DQG PRRQV DQG SODQHWV ZLOO NQRZ IHDU
6HHN RXW WKH GDUNQHVV :KHUH WKH IRFXV LV IRXQG ORRN
WRWKHVWRQHEHQHDWKIRUWKHPLVVLQJSLHFHRIWKHSLFWXUH
7KURXJK VWRQH DQG VWDU ILQG WKH GDUNQHVV DQG EULQJ LW
WR WKH OLJKW 2QO\ WKURXJK WKH IRUFHV RI JRRGQHVV DQG
KRSH FDQ WKH GDUNQHVV EH NHSW IURP GHVWUR\LQJ DOO WKDW
ZHORYH7KLVLVWKHIXWXUHDV,KDYHIRUHVHHQLW±1=´
7KHWH[WLVLQFOXGHGDVSOD\HUKDQGRXW
 ³1=´LVDUHIHUHQFHDQ\KHURZLWK.QRZOHGJH-HGL
WKDW WKH\ FDQ ILW WKURXJK 7KHUH DUH QR ³ZRUGV´ WR WKH
PRDQLQJ VR WUDQVODWLRQ RI WKH PHVVDJH LV LPSRVVLEOH
7KHUHLVVRPHWKLQJGRZQWKHUHWKDWQHHGVKHOS
 7KH GDUN YHUWLFDO VKDIW LV GHILQLWHO\ QRW QDWXUDO LI
WKHVPRRWKZDOOVZHUHQ¶WHQRXJKWRPDNHWKLVFOHDUWKH
PHWDO UXQJV VHW LQWR WKH ZDOO FHUWDLQO\ DUH 7KH UXQJV
ZHUH RULJLQDOO\ VHW KHUH E\ PLQLQJ FRPSDQ\
UHSUHVHQWDWLYHVZKRZHUHFKHFNLQJRXWWKHORZHUOHYHOV
DQGZKRVHDOHGLWRYHUZKHQWKH\IRXQGLWXQWHQDEOHIRU
H[SORLWDWLRQ
 7KH ERWWRP RI WKH VKDIW LV EH\RQG WKH UDQJH RI
DQ\RQH¶V YLVLRQ DQG OLJKW VRXUFHV GRQ¶W KHOS PXFK ,I
VRPHRQH GHFLGHV WR GURS D JORZ URG LQWR WKH KROH
GHVFULEH WKH URG JRLQJ GRZQ LQWR WKH GDUNQHVV
/RUHVKRXOGUHFRJQL]HRQD'&FKHFN7KH\DUHWKH
LQLWLDOV RI 1HUUD =LYHUL IRXQGHU RI WKH -HGL $FDGHP\
DQGORVW-HGL0DVWHU
 7KH ³IRFXV´ UHIHUUHG WR LQ WKH WH[W LV DFWXDOO\ WKH
FU\VWDOVRQWKHIDUZDOO±VLQFHFU\VWDOVVHUYHDVIRFLLQ
OLJKWVDEHUV 2Q WKH IORRU EHQHDWK WKH ODUJHVW
FRQFHQWUDWLRQ RI FU\VWDOV UHPDLQLQJ LV D YHU\ GLP
RXWOLQHRIDVWDU,QWKHFHQWHURIWKDWVWDULVDKROHDQG
OLVWHQLQJ DW WKH KROH WKH PRDQLQJ VHHPV WR EH FRPLQJ
IURP WKHUH 7KH KROH LV VPDOO EXW FDQ EH ZLGHQHG LQ
DQ\ RI D QXPEHU RI ZD\V LQFOXGLQJ H[SORVLYHV
OLJKWVDEHUV EODVWHUV ± RUMXVW MXPSLQJ XS DQG GRZQ RQ
LW:KDWHYHUWKH\GRLQD PDWWHURIDIHZ PLQXWHVWKH
KHURHV FDQ KDYH D ODUJH HQRXJK KROH RSHQHG WKDW WKH\
FDQJRGRZQLQWRWKHGDUNQHVVEHORZ±LQVHDUFKRIWKH
HYHQJUHDWHUGDUNQHVV
ERXQFLQJ DJDLQVW WKH ZDOOV DQG HYHQWXDOO\ VWULNLQJ WKH
ERWWRP±DIWHUDERXWWHQVHFRQGV,QRWKHUZRUGVLW¶VD
ORQJZD\WRWKHERWWRP
 7KH VKDIW EHJLQV OHVV WKDQ D PHWHU ZLGH EXW JHWV
EURDGHUDVWKHKHURHVGHVFHQGZLWKWKHIDUZDOOJHWWLQJ
JUDGXDOO\ IXUWKHU DZD\ IURP WKH RQH ZLWK WKH UXQJV
5HIHUWR'0$LGIRUDGLDJUDPRIWKHGHVFHQW
 $IWHUDERXWILIW\PHWHUVWKHKHURHVVWLUXSDQHVWRI
QHRQRFNV P\QRFNOLNH FUHDWXUHV WKDW FDPH LQ DWWDFKHG
WR WKH KXOO RI WKH VKLS EHORZ ZKHQ LW RULJLQDOO\ FUDVK
ODQGHG DQG KDYH VLQFH FKHZHG D KRPH IRU WKHPVHOYHV
LQ WKH IDU ZDOO RI WKH VKDIW 7KH\ KDYH OLYHG TXLWH
KDSSLO\ RQ WKH FU\VWDOV ZLWKLQ WKH URFN RI 7LOQHV DQG
IHDURXWVLGHUV±DVQRQHRIWKHQHRQRFNVFXUUHQWO\OLYLQJ
KHUH KDYH HYHU VHHQ DQ\WKLQJ EXW RQH DQRWKHU 7KH\
GRQ¶WDVDUXOHJHWRXWPXFK
  $OO KHURHV JHW OLVWHQ FKHFNV '&  WR KHDU WKH
 IODSSLQJ RI ZLQJV FRPLQJ WRZDUG WKHP DQG SUHYHQW
EHLQJ VXUSULVHG )RUFH6HQVLWLYH LQGLYLGXDOV PD\ PDNH
(QFRXQWHU WKH VWDQGDUG '&  ZLVGRP FKHFN WR SUHYHQW EHLQJ
7KH'HVFHQW VXUSULVHGDVZHOO

.H\ LGHDV RI WKLV HQFRXQWHU WKURXJK WKH KROH LQ WKH
6XGGHQO\ VRPHWKLQJ VZRRSV RXW RI WKH GDUNQHVV DQG
IORRU WKH KHURHV ILQG D YHUWLFDO VKDIW WKDW ZDV FOHDUO\
DWWDFNV\RX
FXWPDQ\\HDUVDJRIURPWKHURFNRI7LOQHVLWORRNVWR

EH DQ HDV\ GHVFHQW XQWLO WKH LQKDELWDQWV RI WKH VKDIW
 1HRQRFN  6XEWHUUDQHDQ SDUDVLWH  ,QLW 
WDNH RIIHQVH DW WKH YLVLWRUV DQG EHJLQ GRLQJ IO\E\
'HIHQVH   QDWXUDO  GH[ 6SG P IO\ 93:3
DWWDFNV DW WKH ERWWRP RI WKH VKDIW LV D GDPDJHG
 $WN  PHOHH G ELWH RU  PHOHH
VWDUILJKWHU
GG ZLQJ VODP  UDQJHG 64 EOLQGVLJKW

WDNHGRZQ69)RUW5HI:LOO±6=05HS
7KH KROH OHDGV GRZQ LQWR D OLWWOHXVHG VHFWLRQ RI WKH
6WU'H[&RQ,QW:LV&KD
PLQHVZKLFK900&HOHFWHGQRWWRH[SORLWEHFDXVHRI
 6NLOOV+LGH0RYH6LOHQWO\
WKHDEXQGDQFHRI<ULZRUPVLQWKHDUHDZKLFKPDGHDOO
 )HDWV)O\E\DWWDFN0XOWLDWWDFN
RIWKHURFNXQVWDEOH7KHZDOOVFHLOLQJDQGIORRURIWKH

FDYHUQVGRZQ KHUHDUHD PDVVRIVPDOOWXQQHOVIRUPHG
7KHUH DUH RQO\  QHRQRFNV IRU ORZHU WLHU JURXSV
E\ WKH ZRUPV DQG LW LV WKHVH WXQQHOV WKDW DOORZHG WKH
1HRQRFNV ORRN OLNH P\QRFNV RQO\ ZLWK SRZHUIXO
VKLS DW WKH ERWWRP WR FUDVK WKURXJK VR PDQ\ OD\HUV
JUDVSLQJDSSHQGDJHV
ZKLOH UHPDLQLQJ UHODWLYHO\ LQWDFW WKDW DQG D VHW RI
 7KH QHRQRFNV DWWDFN WKH ORZHVW DQG KLJKHVW
SUHWW\ GHFHQW VKLHOGV WKDW GLGQ¶W JLYH RXW XQWLO WKH ODVW
LQGLYLGXDOV RQ WKH UXQJV ILUVW ± WKH ORZHVW EHFDXVH
OD\HU
WKH\¶UH HDV\ SUH\ DQG WKH KLJKHVW EHFDXVH LI WKH\ IDOO
 7KHPRDQVRISDLQFRQWLQXHWRHFKRXSWKURXJKWKH
WKH\ ZLOO OLNHO\ WDNH VRPH RI WKH RWKHUV ZLWK WKHP
KROH LQ WKH IORRU RQFH WKH KHURHV KDYH LW RSHQ HQRXJK
0DNH VXUH \RX NQRZ WKH RUGHU LQ ZKLFK WKH KHURHV


7LOQHV5LVLQJ  3DJH
GHVFHQGHG LQWR WKH KROH 7KH QHRQRFNV XWLOL]H WKHLU
IO\E\ DWWDFN DQG VODP WKH WRS DQG ERWWRP LQGLYLGXDOV
ZLWK WKHLU ZLQJV DWWHPSWLQJ WR NQRFN WKHP RII WKH
UXQJV 7KH WDNHGRZQ DELOLW\ RI WKH QHRQRFNV ZRUNV DV
IROORZV $Q\ WLPH D VLQJOH QHRQRFN KLWV D KHUR ZLWK
ERWKRILWVZLQJVODPVRUVFRUHVDVXFFHVVIXOFULWLFDOKLW
ZLWKRQHRILWVZLQJVLWPD\HOHFWQRWWRGRGDPDJHEXW
WR DWWHPSW WR NQRFN WKH KHUR IURP WKH UXQJV 7KH KHUR
PXVW PDNH D UHIOH[ VDYH ZLWK '& HTXDO WR WKH DPRXQW
RI GDPDJH WKDW ZRXOG KDYH EHHQ GHDOW RU WZLFH WKDW
IURPEHORZ:KHQ\RXUHDFKWKHERWWRPRIWKHVKDIWD
VWUDQJHVLJKWJUHHWV\RXUH\HV$VKLS±LWORRNVOLNHDQ
HDUO\ YHUVLRQ RI D * &DQQLEDOL]HU ± OLHV DPLGVW D
SLOH RI UXEEOH 'XVW DQG GHEULV FRYHU PRVW RI LW
REVFXULQJLWVPDUNLQJVDQGWKHPRDQLQJVHHPVWREH
FRPLQJIURPWKHVKLS¶VFRFNSLW

7KHVKLSKDVEHHQKHUHIRU\HDUV3OD\HUVPD\DVNKRZ
LW LV WKDW QR RQH QRWLFHG LW FUDVKLQJ RU QRWLFHG DOO WKH
OD\HUVLW KDGWRJRWKURXJKWKHDQJOHWKDWLW PXVWKDYH
DPRXQW IRU D FULWLFDO KLW WR DYRLG EHLQJ NQRFNHG RII FRPHLQGRHVQ¶WFRUUHVSRQGWRDQ\NQRZQSRUWLRQRIWKH
WKH UXQJ 6R IRU H[DPSOH D QHRQRFN KLWV ZLWK ERWK RI PLQLQJ RSHUDWLRQ DQG UHDOO\ HQRXJK WKLQJV KLW WKH
LWV ZLQJ VODPV DQG ZRXOG KDYH GRQH  SRLQWV RI VXUIDFHRI7LOQHVWKDWDVKLSWKHVL]HRIWKLVRQHKLWWLQJ
GDPDJH ZLWK LWV KLWV G 7KH DIIHFWHG KHUR PXVW ZHOO DZD\ IURP WKH HSLFHQWHU RI DFWLYLW\ DQG WKHQ
PDNHD'&UHIOH[VDYHWRNHHSIURPORVLQJKLVRUKHU FUDVKLQJ WKURXJK D VHULHV RI XQXVHG FDYHUQV ZRXOGQ¶W
JULS DQG IDOOLQJ ,I WKH QHRQRFN KDG LQVWHDG VFRUHG D QHFHVVDULO\JHWDQ\RQH¶VDWWHQWLRQ
FULWLFDO ZLWK RQH ZLQJ DQG PLVVHG ZLWK WKH RWKHU WKH  7KDWWKHUH¶VVWLOOPRDQLQJFRPLQJIURPLWDIWHUWKLV
UHIOH[VDYHZRXOGKDYHEHHQEDVHGRIIGGRXEOHG ORQJ VKRXOG SUREDEO\ PDNH WKH KHURHV D OLWWOH QHUYRXV
$QG\HV±ZKHQ\RXJHWWZRFULWVRUDFULWDQGDUHJXODU 7KH\ VKRXOG JHW PRUH QHUYRXV VWLOO ZKHQ WKH\ VHH
KLWWKH'&VFDQVWDUWJHWWLQJVFDU\ ZKDW¶VLQVLGHWKHVKLS«
 %HFDXVH WKH KHURHV DUH VR FORVH WR WKHLU QHVW WKH 
QHRQRFNV DUH QRW JRLQJ WR UXQ DZD\ 7KH\ ILJKW WR WKH 
GHDWK ,I WKH\ VXFFHHG LQ NQRFNLQJ DQ\ RI WKH KHURHV
IURP WKH ODGGHU DOO LV QRW ORVW 2QH RI WKH QHRQRFNV
(QFRXQWHU
VZRRSVGRZQDQGFDWFKHVWKHIDOOLQJKHURWKHQFDUULHV 7KH*HQWOH$VFHQW
WKDWLQGLYLGXDOEDFNXSWRWKHQHVWRQLWVQH[WDFWLRQ,I
.H\LGHDRIWKLVHQFRXQWHUH[SORULQJWKHFUDVKHGVKLS
WKH\UHDOO\ ZDQWWR VKRRWWKH WKLQJWKDW¶V KROGLQJWKHP
DQG SRWHQWLDOO\ OHDUQLQJ DERXW LWV FDUJR ILQGLQJ RXW
DORIW WKH\ FDQ ± EXW ER\ LV WKDW GXPE %HFDXVH WKH
WKDW LW LV QRZ WUDQVPLWWLQJ GHDOLQJ ZLWK WKH &DDULWH
HQWUDQFH WR WKH QHRQRFN QHVW LV RQO\  PHWHUV DZD\
JXDUGVWKDWVKRZXS
IURPWKHUXQJVLWLVSRVVLEOHWRILQGDZD\WRJHWDFURVV

± OLTXLG FDEOH VRPH VRUW RI KHURLF OHDS RU ZKDWHYHU
$ FUDVKHG * &DQQLEDOL]HU WKLV GHHS LQ WKH PLQHV
FLQHPDWLF IXQ WKH SOD\HUV FRPH XS ZLWK ± LQ RUGHU WR
VKRXOGEHVRPHWKLQJWKHKHURHVZRQGHUDERXW/RRNLQJ
UHVFXH DQ\RQH ZKR KDV EHHQ WDNHQ E\ WKH QHRQRFNV
DWWKHWXQQHOWKDWOHDGVDZD\EHKLQGWKHVKLSLWDSSHDUV
7KHUHLVQRWKLQJRILQWHUHVWLQWKHQHRQRFNQHVW
WKDWLWFUDVKHGWKURXJKVHYHUDOOD\HUVRIURFNVRPHWLPH
 7KH ILJKW VKRXOG EH VFDU\ DQG WHQVH HVSHFLDOO\
DJRDQGFDPHWRUHVWKHUH3OHDVHUHIHUWR '0 $LG
VLQFH WKH KHURHV DUH KDQJLQJ RQWR UXQJV RYHU D ORQJ
IRU D EDVLF OD\RXW RI RQH ZD\ \RX FDQ LPDJLQH WKH
GURS DQG WKHUHIRUH ZLOO EH '(1,(' 7+(,5 '(;
MRXUQH\WKHKHURHVDUHRQ
%2186(6WRGHIHQVH7KH\VWLOOJHWWKHLUGH[PRGLILHU
 :KHQWKH\¶UHUHDG\WRH[SORUHWKHVKLSSURFHHGWR
WR WKHLU UHIOH[ VDYHV EHFDXVH DW WKDW SRLQW DOO WKH\¶UH
WKHIROORZLQJ
GRLQJLVWU\LQJQRWWRIDOODQGGH[WHULW\FRPHVLQKDQG\

WKHQ ± EXW ILJKWLQJ ZKLOH KROGLQJ RQWR D UXQJ LQ WKH
<RX FOHDU DZD\ VRPH RI WKH GLUW DQG GXVW WKDW KDV
GDUN LQ D GHHS PLQH VKDIW LV D VLWXDWLRQ ZKHUH WKH\ GR
VHWWOHGRQWKHFRFNSLWRIWKHFUDIWDQGLQVLGH\RXFDQ
QRW KDYH WKHLU GH[ ERQXV WR GHIHQVH EDUULQJ VRPH VRUW
VHH DQ LQGLYLGXDO LQ D IXOO IOLJKW VXLW ZHDULQJ D EODVW
RI LQVDQH FUHDWLYLW\ ,I WKHUH¶V VRPHWKLQJ WKH\ GR WKDW
KHOPHW+LVKHDGLVGRZQDQGWKHPRDQLQJLVDVORXG
PDNHV LW UHDVRQDEOH IRU WKHP WR VWLOO KDYH WKHLU GH[
DVHYHU
ERQXV WKHQ E\ DOO PHDQV ± WKH\ KDYH LW , MXVW FDQ¶W

WKLQNZKDWWKDWZRXOGSRVVLEO\EH
1RZKHUH¶VWKHGHDO7KLVJX\LVGHDG+HKDVEHHQIRU
 7KH SXUSRVH RI WKH ILJKW WKRXJK LV QRW WR NLOO
RYHUDGHFDGH7KH PRDQLQJ WKH\¶UH KHDULQJIURPWKLV
DQ\RQH,WZRXOGWDNHVRPHSUHWW\EDGGLFHUROOVIRUWKDW
GLVWDQFHGHILQLWHO\VRXQGVKXPDQEXWKH¶VQRWPDNLQJ
WR KDSSHQ ,W¶V D  PHWHU IDOO JLYH RU WDNH )RU ORZHU
LW ,W¶V EHLQJ PDGH E\ WKH KRORUHFRUGLQJ KH ZDV
WLHU JURXSV PDNH LW LQWR D  PHWHU IDOO 7KH IDOOLQJ
ZRUNLQJRQZKHQKHGLHGDQGQHYHUPDQDJHGWRVHQG
UXOHVLQWKH6:53*FRUHERRNDSSO\
:LWKLQWKHODVWFRXSOHRIKRXUVDOORIWKHDFWLYLW\IURP
 $IWHUWKHILJKWLVRYHUUHDGWKHIROORZLQJ
WKHPHWHRUVKLWWLQJWKHVXUIDFHRIWKHPRRQKDVVKDNHQ

ORRVH SRUWLRQV RI WKH FHLOLQJ DQG KLV FRUSVH IHOO
7KHODVWRIWKHFUHDWXUHVSOXPPHWVWRWKHERWWRPRIWKH
IRUZDUGKLVKDQGILQDOO\SUHVVLQJWKH³WUDQVPLW´EXWWRQ
VKDIW DQG \RX KHDU WKH ORZ PRDQLQJ VWLOO FRPLQJ


7LOQHV5LVLQJ  3DJH
2QO\ SDUW RI KLV WUDQVPLWWHU LV ZRUNLQJ WKRXJK ± WKH
SDUW WKDW VHQGV RXW WKH ORFDWLRQ EHDFRQ IRU WKH VKLS
LWVHOI$VPDOOSRUWLRQRIKLVPHVVDJHLVEHLQJUHSOD\HG
RYHUDQGRYHUMXVWDV$UWRRUHSOD\HGDVPDOOSRUWLRQRI
/HLD¶VPHVVDJHRYHUDQGRYHUIRU/XNHLQ6WDU:DUV$
1HZ+RSH7KHUHSHDWLQJVHFWLRQFRQVLVWVRIDVHULHVRI
SDLQHG PRDQV IROORZHG E\ D ORQJ SDXVH VXFK WKDW LW
RQO\ F\FOHV DERXW RQFH D PLQXWH DQG WKXV LVQ¶W
QRWLFHDEOHDVF\FOLFIURPDGLVWDQFH
 7KHUH DUH D ORW RI HOHPHQWV WR WKLV HQFRXQWHU )RU
\RXU FRQYHQLHQFH ,¶YH VHSDUDWHG WKHP RXW E\ VXE
KHDGLQJV
 7KH6KLS,WVHOI
3DVVHQJHU2QH7KH'HDG3LORW
,WWDNHVDOLWWOHZRUNWRJHWWKHFRFNSLWRSHQEXWDQ\RQH
ZLWK VRPH WHFKQLFDO VDYY\ FDQ GR LW SUHWW\ HDVLO\ 7KH
SLORWVOXPSHGRYHUKLVFRQWUROSDQHOLVQRWUHVSRQVLYH
%HFDXVH KH¶V ZHDULQJ IXOO IOLJKWJHDULQFOXGLQJ JORYHV
DQG KHOPHW RQO\ KLV ODFN RI EUHDWKLQJ RU RWKHU
PRYHPHQW JLYHV DZD\ WKDW KH¶V GHDG 7KHUH LV QR
UHVLGXDORGRUWKHGHDWKVPHOOGLVVLSDWHGWKURXJKFUDFNV
LQWKHFRFNSLWJODVV\HDUVDJR
 +H LV ZHDULQJ WKH IOLJKW XQLIRUP RI D PHPEHU RI
WKH 7KDHUHLDQ 1DY\ SDOH EOXH ZLWK JROG WULP DQG
DQ\RQHZLWKNQRZOHGJHRIPLOLWDU\UDQNVFDQUHFRJQL]H
WKH&DSWDLQ¶VLQVLJQLDRQKLVFROODU
 ,I DQ\RQH ZDQWV WR H[DPLQH WKH ERG\ LQ PRUH
GHWDLOWKHUH¶VQRWPXFKOHIWEXWERQHVDQGKDLU$7UHDW
,QMXU\ FKHFN FDQ UHYHDO DQ\ RU DOO RI WKH IROORZLQJ
LQIRUPDWLRQ$VHYHUDKLJKHUOHYHOFKHFNUHYHDOVDOORI
 :KDW¶V LQWHUHVWLQJ DERXW WKH GURLG LV WKDW LW LV WKH
(;$&7 6$0( 02'(/ DV /1 WKH GURLG WKDW
DWWHPSWHGWRWDNHFRQWUROLQ³6RPHWKLQJ8IIHO´$Q\RQH
ZLWK NQRZOHGJH RI GURLGV ORFDO NQRZOHGJH RU
HOHFWURQLF RU GURLGUHODWHG FUDIW VNLOOV UHFRJQL]HV WKDW
WKLV LV D YHU\ SRSXODU PRGHO SURWRFRO GURLG LQ 7KDHUH
RQHWKDWWKHGURLGVRI8IIHODUHSDUWLFXODUO\SURXGRI
 7KHUH LV QRWKLQJ XVHIXO WKDW WKLV GURLG FDQ GR ,W¶V
UHDOO\QRWKLQJPRUHWKDQDVKHOOVLQFHDOORILWVFLUFXLWV
KDYH EHHQ GHVWUR\HG DQG LWV PHPRU\ LV ZLSHG EH\RQG
UHSDLU

$Q\RQH PDNLQJ DQ H[DPLQDWLRQ RI WKH RXWVLGH RI WKH
VKLS VHHV WKDW LW LV YLUWXDOO\ GHYRLG RI LGHQWLI\LQJ
PDUNLQJV XQOHVV RQH LQVSHFWV LWV XQGHUVLGH YHU\
FDUHIXOO\$ORQJWKHPLGOLQHRIWKHVKLS¶VXQGHUVHFWLRQ
LQYHU\VPDOOVFULSWDUHDVHULHVRIQXPEHUV



7KH QXPEHUV DUH WKH VKLS¶V LGHQWLILFDWLRQ FRGH DQG
SUREDEO\ FRQWDLQ PRUH LQIRUPDWLRQ WKDQ WKDW EXW WKH
KHURHV DW WKLV SRLQW KDYH QR ZD\ WR GHFRGH WKHLU
PHDQLQJ
 ,W LV DOVR ZRUWK QRWLQJ WKDW WKH VW\OH RI VKLS ORRNV
IDPLOLDUWR KHURHV ZKRSOD\HG³7RS:RUOG´8QPDUNHG
&DQQLEDOL]HUV ZHUH WKH VKLSV WKDW DWWDFNHG 1LUDPD¶V
IUHLJKWHU ZLWK WKH KHURHV RQ ERDUG 7KLV REYLRXVO\
ZDVQ¶WRQHRIWKRVHVKLSVVLQFHLW¶VEHHQGRZQKHUHIRU
WKHLQIRUPDWLRQEHORZLW D GHFDGH EXW D TXLFN 6SDFHU /RUH FKHFN '& 
 UHYHDOV WKDW &DQQLEDOL]HUV KDYH QHYHU EHHQ VRPHWKLQJ
'& ,QIRUPDWLRQ*DLQHG WKH 7KDHUHLDQ 1DY\ ZDV UHSRUWHG WR XVH 7KLV PLJKW
 'HILQLWHO\ PDOH 'HILQLWHO\ KXPDQ 'HILQLWHO\ PHDQ WKH\¶YH EHHQ XVLQJ WKHP IRU RYHU D GHFDGH
GHFHDVHG WKRXJKVLQFHWKHLQVLGHRIWKHVKLSLVGHFNHGRXWZLWKD
 +H GLGQ¶W GLH RQ LPSDFW +H GLHG EHFDXVH KLV IXOOPLOLWDU\VHQVRUDUUD\
OHJV ZHUH SLQQHG DQG KH FRXOGQ¶W JHW RXW %DG 
ZD\WRJR 7KH0RDQLQJ
 +H¶VEHHQGHDGDURXQGWHQ\HDUV $Q\RQH LQYHVWLJDWLQJ WKH PRDQLQJ FDQ ILQG D SHUVRQDO
 +H KDG VRPH VRUW RI RFXODU HQKDQFHPHQW FRPELQDWLRQ KRORUHFRUGHUKRORSURMHFWRU DWWDFKHG WR
WHFKQRORJ\ 7KHUH DUH VWUDQJH LPSODQWV DURXQG WKH VKLS¶V FRQVROH ,W KDV RQO\ EDUHO\ VXUYLYHG LWV WLPH
WKH EDFN RI KLV H\H VRFNHWV /RZHU '&V PD\ LQ7LOQHVEHWWHUWKDQWKHGURLGGLGDQGLVJRLQJWRWDNH
QRWLFHWKHVHEXWKDYHQRLGHDZKDWWKH\PHDQ VRPHVHULRXVUHSDLUZRUNWRJHWLQJRRGRUGHU
 7KHUH¶V HYLGHQFH RI H[WHQVLYH EUDLQ VXUJHU\ ,W
ORRNV OLNH WKHUH ZHUH VHYHUDO RUJDQLF PRGXOHV
LPSODQWHGLQKLVVNXOOWKDWSUREDEO\IHGLQWRKLV
EUDLQLQVRPHZD\EXWWKH\¶YHDOOGHFD\HGMXVW
OLNHKLVIOHVKGLG
 
3DVVHQJHU7ZR7KH'URLG&R3LORW
6HDWHGEHKLQGDQGIDFLQJDZD\IURPWKHSLORWDVLQD
 ,I DQG RQO\ LI WKH KHURHV VXFFHHG LQ D '& 
UHSDLU FKHFN WKH\ FDQ JHW WKH IXOO PHVVDJH WKH SLORW
UHFRUGHGMXVWEHIRUHKHGLHG7KHUHFRUGHUSURMHFWRUFDQ
EH UHSDLUHG ODWHU IRU  FUHGLWV EXW LI LW LV SXW LQWR
ZRUNLQJRUGHUWKLVZD\WKHPHVVDJHZLOOEHORVW
7KHFRQWHQWVRIWKHPHVVDJHDUHLQFOXGHGDV3OD\HU
+DQGRXW$JDLQLIWKH\GRQ¶WPDNHWKHUHSDLUFKHFN
DOOWKH\ JHWRXWRILWLV PRDQLQJDQGIDLOLQJWKLVUHSDLU
FKHFN E\ PRUH WKDQ ILYH UHVXOWV LQ WKH PHVVDJH EHLQJ
VQRZVSHHGHULVDGURLG,WZDVGDPDJHGRQLPSDFWEXW
ORVW DQG WKH PRDQLQJ VWRSSLQJ ,W FDQ VWLOO EH UHSDLUHG
ZKDWVKXWLWGRZQIRUJRRGZHUHWKHHQHUJ\SXOVHVIURP
ODWHUWKRXJKWKHPHVVDJHLVLUUHFRYHUDEOH
WKH FRUH RI 7LOQHV ,W¶V KDG LWV FLUFXLWV IULHG VR PDQ\

WLPHVPRVWRIWKHPKDYHVWDUWHGWRPHOWWRJHWKHU


7LOQHV5LVLQJ  3DJH
7KH7UDQVPLWWHU
7KHUHLVDUHGOLJKWIODVKLQJRQWKHFRQVROH7KLVZRXOG
EHDJRRGWKLQJWR PHQWLRQWRWKHSOD\HUVDQGD'&
&RPSXWHU8VHUROODOORZVWKHPWRGLVFHUQWKDWWKLVLVD
KRPLQJ EHDFRQ ZKLFK DOHUWV RWKHUV WR WKH VKLS¶V
ORFDWLRQ
 7KH\FDQILJXUHRXWZLWKD'&VSRWFKHFNWKDW
RQH RI WKH KDQGV RI WKH FRUSVH PXVW KDYH VKLIWHG MXVW
HQRXJK WR IOLFN WKH VZLWFK DQG DFWLYDWH WKH EHDFRQ
UHFHQWO\ VLQFH RWKHUZLVH WKH SRZHU FHOOV IRU WKH VKLS
ZRXOGKDYHORQJVLQFHUXQGRZQ7KLVLVSUREDEO\ZKDW
VWDUWHGWKHKRORSURMHFWRUJRLQJDJDLQDVZHOO
 ,I WKH\ ZDQW WR VKXW GRZQ WKH WUDQVPLWWHU LW
UHTXLUHVD'&'LVDEOH'HYLFHFKHFN,IWKH\ZDQWWR
ZDLW DURXQG WR VHH ZKR WKH WUDQVPLWWHU EULQJV WKH\
ZRQ¶WKDYHWRZDLWORQJ
 
7KH,PSDFW
2K 'LG , IRUJHW WR PHQWLRQ WKDW WKHUH¶V DQRWKHU KXJH
EXQFK RI GHEULV DERXW WR JHW NQRFNHG RXW RI RUELW DQG
VWRSSLQJZKHQWKH&DDULWHVVXUUHQGHURQWKHRUGHUVRI
7KXUP/RRJJZKRZDQWVWRWDONWRWKHKHURHVDERXWWKH
³WUXHSUREOHP´RQ7LOQHV

7KHZRUGVDUHVSRNHQLQ%DVLFEXWDQ\RQHZKRSOD\HG
WKH ³(\H RI WKH 6XQ´ WULORJ\ KDV KHDUG PRUH WKDQ
HQRXJK &DDULWH VSHHFK WR UHFRJQL]H WKH VOLJKW OLOWLQJ
TXDOLW\ RI WKH ZRUGV 7KHUH DUH PRUH &DDULWHV GRZQ
KHUHDQGWKHVHDUHFRQVFLRXV
 1RZ WKH KHURHV KDYH D FRXSOH RI FKRLFHV 7KH\
FDQ ILJKWRUWKH\FDQSDUOD\ 7KH&DDULWHVDUH127LQ
³VKRRWILUVWDVNTXHVWLRQVODWHU´PRGH7KH\ZHUHVHQW
WRILQGWKHVRXUFHRIWKHVLJQDODQGDUHIDLUO\VXUSULVHG
WR KDYH FRPH DFURVV DQ\RQH GRZQ KHUH VLQFH WKH\
FDUHIXOO\PRQLWRUPLQLQJDFWLYLW\DQGNQRZWKDWQRQHRI
WKHPLQHUVZHUHZRUNLQJWKLVDUHD
2QHRIWKHPHPEHUVRIWKLVGHWDFKPHQWLVDFWXDOO\
&RUSRUDO 'UHJ] WKH &DDULWH VROGLHU ZKR HVFRUWHG WKH
KHURHV LQWR WKH &DUWHO FRPSRXQG LQ ³$ &XODULQ
3UHVHQFH´ &RLQFLGHQFH" ,V WKHUH VXFK D WKLQJ DV
SXPPHOWKHVXUIDFHRI7LOQHV"6LOO\PH ³FRLQFLGHQFH´ LQ WKH XQLYHUVH" ,I WKH KHURHV GR QRW
 ,I WKH\ UXQ RXW RI LGHDV IRU ZKDW WR GR KHUH GRQ¶W LPPHGLDWHO\ VWDUW VKRRWLQJ ZKHQ WKH\ VHH WKH &DDULWH
SURPSWWKHP7KHDPRXQWRILQIRUPDWLRQWKH\ORRNIRU SDWURO WKH\ JHW D '&  VSRW FKHFN WR QRWLFH KLP DV
DQGILQGGHWHUPLQHVZKDW,DVVXPHSHRSOHNQRZJRLQJ IDPLOLDU DQG LI WKH\ PDNH D '&  ,QWHOOLJHQFH FKHFN
LQWR QH[W \HDU 0DNH 685( \RX ILOO RXW WKH FULWLFDO RULIWKHSOD\HUKDVDIULJKWHQLQJO\JRRGPHPRU\WKH\
HYHQWVVXPPDU\SDUWLFXODUO\GXULQJWKHILUVWPRQWKEXW HYHQUHFDOOKLVQDPHDQGUDQN
WKHVH ZLOO EH UHOHYDQW WR PH DIWHU WKH ILUVW PRQWK DV  7KH&DDULWHV ZLOO127VKRRWILUVWDQGLIWKH\DUH
ZHOO ILUHGXSRQWKHILUVWURXQGWKH\VKRRWEDFNWKH\VKRRWWR
 $Q\ZD\RQFHWKH\¶YHDGRQHHYHU\WKLQJWKHUHLV VWXQ 7KH\ ZHUH QRW DIWHU DOO VHQW GRZQ KHUH WR NLOO
WR GR KHUH E UXQ RXW RI LGHDV RU F VWDUW DQQR\LQJ PLQHUV DQG WKH\ KDYH QR UHDVRQ WR VXVSHFW WKDW ZKDW
\RXGURSWKHURRIRQWKHP WKH\¶YHIRXQGLVDQ\WKLQJEXW3OHDVHUHPLQGWKHKHURHV
 /LWHUDOO\ WKDW LW PD\ EH DQ HYLO DFW WR DWWDFN ZLWK OHWKDO IRUFH
 ZKHQ WKHLU RSSRVLWLRQ LV RQO\ DWWDFNLQJ WR VWXQ ,I WKH\
)URP VRPHZKHUH IDU DERYH \RX KHDU WKH VRXQGV RI SHUVLVW LQ DWWDFNLQJ ZLWK OHWKDO IRUFH DIWHU JHWWLQJ D
LPSDFWV2QH«WZR«WKUHH«DQGWKHWXQQHODURXQG ZDUQLQJ'63VPD\EHLQRUGHU$QGGRQ¶WOHWDQ\-HGL
\RXEHJLQVWRVKDNH5RFNVIDOOIURPWKHFHLOLQJDQGD ³KHUR´WHOO\RX³7KHUH¶VQRZD\ WRDWWDFNQRQOHWKDOO\
UXPEOLQJ EHJLQV DW WKH WRS RI WKH VKDIW IURP ZKLFK ZLWK D OLJKWVDEHU´ 7KHUH DUH SOHQW\ RI UXOHV LQ WKH
\RXHPHUJHG 6:53* IRU GRLQJ H[DFWO\ WKDW ± GLVDUPLQJ DQG
 DWWDFNLQJZHDSRQVEHLQJWZRRIP\IDYRULWHV
1RZ ZRXOG EH D JRRG WLPH IRU WKHP WR PRYH DZD\  $IWHUWZRURXQGVRIVKRRWLQJWRVWXQWKRXJKLIWKH
IURP WKDWVKDIW7KHUH¶VD KXJHFUDVKLQJDV WKHFDYHUQ RSSRVLWLRQ LV DWWDFNLQJ XVLQJ OHWKDO IRUFH WKH &DDULWHV
DERYH FROODSVHV VHQGLQJ D FORXG RI GXVW ELOORZLQJ RXW DUHJRLQJ WRVWDUWVKRRWLQJWR NLOO7KLVRQO\ ODVWV IRUD
WKHVKDIWDVURFNVFRPHWXPEOLQJGRZQ URXQG WKRXJK DW ZKLFK SRLQW WKH\ UHFHLYH DQ RUGHU WR
 -XVW DV WKH GXVW EHJLQV WR VHWWOH WKH\ KHDU D YRLFH VXUUHQGHU IURP 7KXUP /RRJJ DQG WKH &DDULWHV OD\
IURPWKHGDUNWXQQHOEH\RQGWKHVKLS GRZQWKHLUZHDSRQV
  &RQWLQXLQJ WR DWWDFN DW WKLV SRLQW LV FHUWDLQO\
³:H NQRZ \RX DUH WKHUH &RPH RXW ZLWK \RXU KDQGV JURXQGVIRUDZDUGLQJGDUNVLGHSRLQWV
XS´ 
 &DUWHO6HDUFK6TXDG&DDULWH6ROGLHUV,0
 'HIGH[VL]H6SGP6]693:3
$WN  PHOHH G EDWRQ  UDQJHG G
(QFRXQWHU
7KH5HVWRIWKH3DUW\
.H\LGHDVRIWKLVHQFRXQWHUGHDOZLWKWKH&DUWHOJXDUG
SDUW\WKDWMXVWVKRZHGXSDQGLIDILJKWGRHVEUHDNRXW
EODVWHUSLVWRO64 QRQH69 )RUW5HI:LOO
6=6)35HS6WU'H[&RQ,QW:LV
&KD


7LOQHV5LVLQJ  3DJH
 6NLOOV &OLPE  'HPROLWLRQV  ,QWLPLGDWH  WULORJ\DQG,ILQGWKDW XQOLNHO\EXWKH\LW¶VSRVVLEOH
/LVWHQ5HSDLU6SRW6XUYLYDO7UHDW,QMXU\ WKHQPRGLI\WKHIROORZLQJWH[WDSSURSULDWHO\
 
 )HDWV $UPRU OLJKW PHGLXP  KHDY\ :HDSRQ  ³<RX KDYH VWXPEOHG DFURVV ZKDW LV SUREDEO\ D
3URILFLHQF\ VLPSOH EODVWHU SLVWROV EODVWHU ULIOHV YHU\VXUSULVLQJEXWQRQHWKHOHVVOHJLWLPDWHRSHUDWLRQ
YLEURZHDSRQV KHDY\ ZHDSRQV 'RGJH 3RLQW %ODQN :H\RXUIULHQGVLQWKH&DUWHODUHVWULFWO\DELGLQJE\
6KRW 0RELOLW\ :HDSRQ )RFXV EODVWHU SLVWRO +HURLF WKH SUHVFULSWV RI WKH SHRSOH RI &XODULQ DQG DUH QR
6XUJH ORQJHU RSHUDWLQJ RQ \RXU ORYHO\ JUHHQ SODQHW 2XU
 (TXLSPHQW %ODVWHU SLVWRO XQLIRUP  PHGSDNV EDVH RI RSHUDWLRQV LV KHUH EHQHDWK 7LOQHV DQG ,
EDWRQ RYHUVHH RSHUDWLRQV IURP RXU VKLS LQ RUELW DERYH
 &XODULQ $OO SHUIHFWO\ OHJLWLPDWH DQG ZHOO ZLWKLQ WKH
)RUORZHUWLHUJURXSVXVHIHZHUPHPEHUVRIWKHVHDUFK ERXQGVRIRXUIUDQFKLVH
VTXDGGHSHQGLQJRQSDUW\VL]H
 ,I WKH KHURHV VRPHKRZ PDQDJH WR NLOO DOO RI WKH
&DDULWHV WKHQ VNLS GRZQ WR WKH DFWLYDWLRQ RI WKH
KRORSURMHFWRURQHRIWKHPLVFDUU\LQJ
 ,IWKHKHURHVDUHDOONQRFNHGXQFRQVFLRXVWKH\DUH
WDNHQ EDFN WR WKH &DUWHO EDVH ZKHUH WKH\ KDYH WKHLU
UHPRWHLQWHUYLHZZLWK/RRJJ
 $WWKHHQGRIURXQGRIWKHILJKWZKHWKHUFRPEDW
LV OHWKDO RU QRQOHWKDO WKH &DDULWHV GURS WKHLU ZHDSRQV
DQGFDOORXWWRWKHSDUW\
 D OHJLWLPDWH EXVLQHVV DUUDQJHPHQW ZLWK WKH NLQG IRON
³:H KDYH EHHQ RUGHUHG WR VXUUHQGHU 2XU ZHDSRQV
DUHRQWKHJURXQG3OHDVHFRPHRXWWRVSHDNZLWKXV´
 DWPRVSKHUH DQG KDYH HYHQ FRQVWUXFWHG D FRQFHDOHG
$ OLWWOH ELW RI FDXWLRQ LV SUREDEO\ D UHDVRQDEOH WKLQJ
JLYHQWKHFLUFXPVWDQFHV+RZHYHUWKH&DDULWHVDUHQRW
EOXIILQJVRDQ\VHQVHPRWLYHFKHFNKLJKHUWKDQ'&
VKRXOGPDNHWKHKHURHVSUHWW\VXUHWKDWWKH&DDULWHVDUH
VXUUHQGHULQJ
 7KHUH LV D PHVVDJH FRPLQJ WKURXJK RQ WKH
PRGLILHGKRORSURMHFWRURQHRIWKH&DDULWHVFDUULHVDWKLV
EHOW2QFHDWOHDVWRQHRIWKHKHURHVKDVDSSURDFKHGWR
DFFHSW WKH &DDULWH VXUUHQGHU WKH KRORSURMHFWRU
DFWLYDWHV UHYHDOLQJ WKH SRUFLQH VPLOLQJ YLVDJH RI
&DUWHOHQYR\7KXUP/RRJJ
 5HPHPEHU ZKHQ SOD\LQJ /RRJJ WR VPLOH D ORW
8QWLO \RXU IDFH +8576 +H LV DV VOLP\ DV WKH\ FRPH
DQGODXJKVDQGMRNHVZLWKWKHKHURHVWRWU\WRVHWWKHP
DWHDVH+HDOZD\VKDVKLVRZQDJHQGDWKRXJK
 ,I DOO WKH &DUWHO JXDUGV DUH GHDG EHJLQ ZLWK WKH
KRORSURMHFWRU DFWLYDWLQJ DV WKH KHURHV DSSURDFK WKH
ERGLHVDQGPRGLI\WKHWH[WEHORZDSSURSULDWHO\
 OLNH:LU¶VFXWWLQJRIWKHQREOHFK¶KDODWUHHVWREH
³*UHHWLQJV EUDYH FLWL]HQV RI &XODULQ , DP 7KXUP
/RRJJ\RXUIULHQGLQWKH&DUWHO$QGZKRPLJKW\RX
EH"´
 RXU FKDUWHU SHUPLWV , DVVXUH \RX >6HQVH PRWLYH
<HV WKLV DFWXDOO\ LV D WZRZD\ FRQQHFWLRQ $V WKH
KHURHVLQWURGXFHWKHPVHOYHVWR/RRJJKHKDVVRPHRQH
EHVLGHKLPSXOOLQJXSILOHVRQHDFKRIWKHPDQGLIWKH\
KDYHHYHUKDGLQWHUDFWLRQVZLWKWKH&DUWHOLQWKHSDVW±
HVSHFLDOO\LIWKH\SOD\HGWKH³(\HRIWKH6XQ´WULORJ\±
KH UHFRJQL]HV WKHP ,I QR RQH LQ WKH JURXS SOD\HG WKDW

7LOQHV5LVLQJ
 ³,ZRXOGRIIHUWRKDYHP\JXDUGVHVFRUW\RXEDFN
WRRXUIDFLOLW\KHUHLI,EHOLHYHG\RXZRXOGDFFHSWWKH
RIIHU<RXDUHZHOFRPHWRYLHZLWLI\RXZRXOGOLNHWR
PDNHDUHSRUWWR±ZHOOZKRPHYHU\RXUHSRUWWR´+H
JULQVEURDGO\
 ³)RUQRZWKHUHLVDPRUHSUHVVLQJLVVXHDWKDQG
2XU IDFLOLW\ DQG DOO RI WKH PLQHV RI 7LOQHV DUH LQ
MHRSDUG\ EHFDXVH D FHUWDLQ RWKHU JURXS KDV DOVR
FKRVHQWRHVWDEOLVKDEDVHRIRSHUDWLRQVZLWKLQ7LOQHV
8QOLNHRXUVHOYHVKRZHYHUWKH\GLGQRWILUVWHQWHULQWR
RI9HUJD0HU0LQLQJ&RPSDQ\7KHVHGROWVLQVLVWRQ
IO\LQJ FDSLWDO VKLSV WKURXJK WKH ORZHU SRUWLRQV RI WKH
EDVH ZKHUH VXFK VKLSV FDQ EH GRFNHG EHQHDWK WKH
VXUIDFH RI WKHPRRQ 7KH\ DUH WKH WUXH SUREOHP DQG
LI \RX UHDOO\ ZDQW VRPHWKLQJ WR UHSRUW RQ , ZRXOG
UHFRPPHQG\RXLQYHVWLJDWHWKHP´

$IHZTXHVWLRQV/RRJJFDQDQVZHU«

N :KR DUH \RX WDONLQJ DERXW" :K\ WKH 7KDHUHLDQ
1DY\RIFRXUVH
N 7KH 7KDHUHLDQ 1DY\ KDV EHHQ IO\LQJ FDSLWDO VKLSV
WKURXJK WKH DWPRVSKHUH" <HV DQG GLVORGJLQJ DOO
VRUWVRIPDWHULDOVIURPRUELW
N ,VWKLVWKHRQO\SODFH",W¶VWKHRQO\SODFH,¶YHVHHQ
WKHP :K\" 'R \RX NQRZ RI RWKHUV" >+H OHDQV
IRUZDUGORRNLQJYHU\LQWHUHVWHG@
N :K\ DUH \RX VHWWLQJ XS D EDVH LQ VHFUHW" :H
UHFRJQL]H WKDW QRW HYHU\RQH ORYHV WKH &DUWHO DV
PXFK DV ZH ORYH \RX ,W WDNHV WLPH IRU GHEDFOHV
IRUJRWWHQ
N :KDW DUH \RX VKLSSLQJ" 'U\ JRRGV 0HGLFDO
VXSSOLHV 6RPH LQGLJHQRXV ZRRGV EXW RQO\ WKRVH
'&  OHWV WKH KHURHV NQRZ WKDW /RRJJ LV
ZLWKKROGLQJ VRPHWKLQJ EXW KH ZLOO QRW HODERUDWH
QR PDWWHU KRZ KH LV SXVKHG DQG \HDK WKH '& LV
KLJKEXW/RRJJKDV%OXIIDW«@
N :K\ GRQ¶W \RX MXVW OHDYH WKH V\VWHP" :H GRQ¶W
:$17 \RX KHUH 7KHUH LV JRRG EXVLQHVV KHUH
 3DJH
 DQG PDQ\ RI \RXU IHOORZ FLWL]HQV GR QRW DJUHH
ZLWK \RX ,I RQO\ \RX XQGHUVWRRG KRZ PXFK WKH
&DUWHOORYHV\RX\RXPLJKWQRWEHVRDQJU\
N 6R ZKDW¶V XS ZLWK WKH 7KDHUHLDQ 1DY\" 7KHLU
N
SUHVHQFHGLVUXSWVRXUEXVLQHVV
6R ZK\ GRQ¶W \RX GR VRPHWKLQJ DERXW WKHP"
%HFDXVH LI ZH WRRN DFWLRQ SXEOLFO\ ZH ZRXOG
EULQJXQZDQWHGDWWHQWLRQRQRXUVHOYHV,WLVEHWWHU
IRU WKH &DUWHO WR SLFN DQG FKRRVH RXU SXEOLFLW\
&KDOOHQJLQJ WKH PLOLWDU\ HVWDEOLVKPHQW LV
JHQHUDOO\EDGEXVLQHVV
N <RX MXVW ZDQW WR VHQG XV LQ" <RX KDYH VKRZQ
\RXUVHOYHV WR EH FRQFHUQHG IRU WKH JRRG RI WKH
V\VWHP 6XUHO\ WKDW H[WHQGV WR H[SORULQJ PLOLWDU\
EDVHV FDSDEOH RI KLGLQJ FDSLWDO VKLSV MXVW DERYH
&XODULQLWVHOI"
N &DQ \RX JLYH XV DQ\ JRRG UHDVRQ WR WUXVW \RX"
*LYHQ WKH DFWLRQV RI 9HOLQ :LU , FDQQRW ,
HQFRXUDJH \RX WR VHH IRU \RXUVHOYHV WKH PLOLWDU\
SUHVHQFH EHQHDWK 7LOQHV DQG KDYH VRPHRQH GHDO
ZLWKLW
 ,I ZH¶YH WUDLQHG WKHP SURSHUO\ WKH KHURHV VKRXOG EH
7KH FRQYHUVDWLRQ FRXOG JR RQ IRU KRXUV +RZHYHU LW
ZRQ¶W EHFDXVH WKHUH¶V DERXW WR EH DQRWKHU LPSDFW
:KHQ WKH PHWHRU VWULNHV WKH VXUIDFH RI 7LOQHV WKH
LPDJH RI /RRJJ IOLFNHUV DQG GLVDSSHDUV +DYH WKH
SOD\HUVUROOVSRWFKHFNVDVWKHLPDJHJRHV$Q\RQHZKR
ZDV ZDWFKLQJ WKH LPDJH DQG PDNHV D '&  FKHFN
QRWLFHWKDWGXVW IHOODURXQG /RRJJ¶V IDFHH[DFWO\ ZKHQ
WKH LPSDFW FDPH :KLFK OLNHO\ PHDQV KH¶V DFWXDOO\
EHQHDWK 7LOQHV MXVW OLNH WKH\ DUH )LQGLQJ KLP LV
LPSRVVLEOH EXW WKH NQRZOHGJH WKDW KH ZDV RQ 7LOQHV
UDWKHUWKDQLQWKHVKLSPD\EHLPSRUWDQWODWHU
 LWEXWWKHDLULVZHWDQGKHDY\,W¶VDOVRJHWWLQJFROGHU
,I WKH KHURHV ZDQW WR VHH WKH IDFLOLW\ WKHUH¶V QRW PXFK
WR LW ,W¶V D VHULHV RI VWHHOZDOOHG FDYHV ZKHUH YDULRXV
JRRGV DUH VWRUHG IRU VKLSSLQJ $ OLIW OHDGV WR D KDQJDU
FORVHUWRWKHVXUIDFH7KHUHDUH&DDULWHVDOODURXQGZKR
VHHP XQQHUYHG E\ WKH SUHVHQFH RI WKH RXWVLGHUV EXW
ZKR PDLQWDLQ D UHVSHFWIXO GLVWDQFH DQG GR QRW DQVZHU
TXHVWLRQV
 ,I WKH KHURHV ZHUH DOO WDNHQ XQFRQVFLRXV WKLV
FRQYHUVDWLRQKDVEHHQRFFXUULQJLQDODUJHFRPIRUWDEOH
URRPZLWKEHGVRQ ZKLFKHDFKRIWKHPZHUHODLQDQG
WKH KRORSURMHFWLRQ LV IXOO DQG OLIHVL]H RI /RRJJ VLWWLQJ
LQDFRPI\FKDLUIHHWGDQJOLQJ
 $V\RXPDNH\RXUZD\WKURXJKWKHSDVVDJHV\RXKHDU
2QFH WKH FRQYHUVDWLRQ HQGV &RUSRUDO 'UHJ] JLYHV WKH
KHURHV GLUHFWLRQV WR D VKDIW OHDGLQJ GHHSHU LQWR WKH
PRRQ ZKHUH WKH\ FDQ JDWKHU LQIRUPDWLRQ DERXW WKH
7KDHUHLDQ PLOLWDU\ SUHVHQFH +H DOVR SURYLGHV WKHP
ZLWKDPDSRIWKHWXQQHOVWKDWZLOOJHWWKHPEDFNWRWKH
VXUIDFHRQFHWKH\JRGRZQIXUWKHU,IWKH\FKRRVHWKH\
FDQ WU\ WR XVH WKH PDS WR QDYLJDWH EDFN WR WKH VXUIDFH
ZLWKRXW HYHU JRLQJ GRZQ WR FKHFN RQ WKH SUHVHQFH RI
WKHPLOLWDU\EDVHWKHPVHOYHV8QIRUWXQDWHO\WKHPDSLV

7LOQHV5LVLQJ
QRWFRPSOHWHO\DFFXUDWHDQGOHDGVWKHPLQWRDQDPEXVK
ZKLFKHYHUZD\WKH\JR


(QFRXQWHU
7KH&UX[RIWKH3UREOHP
.H\LGHDVRIWKLVHQFRXQWHULIWKH\HOHFWWRIROORZXSRQ
WKH&DUWHO¶VOHDGWKH\SURFHHGGHHSHULQWR7LOQHVDQG
EHJLQ WR VHH VLJQV RI KDELWDWLRQ DV WKH\ FRPH FORVH WR
WKH EDVH WKH\ DUH IRXQG E\ 2VWHQ GDO¶1D\ ZKR WHOOV
WKHP WKH\ DUH ZDONLQJ LQWR D WUDS KH RIIHUV WR OHDG
WKHPRXWSDVWDEXQNHUZLWKDQHZHEDQGXOWLPDWHO\
DUXQQLQJILJKWRXWRI7LOQHV

7KH WXQQHO VORSHV GRZQ DW D IDLUO\ VKDUS WHQGHJUHH
JUDGH WZLVWLQJ DQG WXUQLQJ DV \RX KHDG GHHSHU LQWR
WKHERZHOVRI7LOQHV)RUVRPHWLPHWKHVWRQHZDOOVRI
WKH WXQQHOV DUH XQUHPDUNDEOH ± URXJKO\ FXW EDUHO\
KLJKHQRXJKIRUD:RRNLHHWRVWDQGHUHFW

JRRGDQGSDUDQRLG7KH\VKRXOGEHORRNLQJIRUVLJQVRI
OLIH RU VHFXULW\ FDPHUDV RU DQ\WKLQJ (QFRXUDJH WKHP
WRORRN/HWWKHSOD\HUVUROOGLFHWRWKHLUKHDUWV¶FRQWHQW
 7KH\ZRQ¶WILQGDQ\WKLQJ
 7KHUH DFWXDOO\ DUH D FRXSOH RI FDPHUDV ZHOO
FRQFHDOHGKLGGHQPHWHUVGRZQYDULRXVVLGHWXQQHOV
%XW WKHUH DUH QRQH LQ WKH PDLQ WXQQHOV WKURXJK ZKLFK
WKH\WUDYHO
 +HUH PRRG LV YHU\ LPSRUWDQW 7KH WXQQHOV DUH
GDUN DQG PXVN\ 7KHUH¶V FOHDUO\ VRPH VRUW RI PRYLQJ
ZDWHUGHHSZLWKLQ7LOQHVZKLFKLVRGG7KH\FDQ¶WKHDU
 6RRQ WKH\ EHJLQ VHHLQJ VLJQV RI OLIH 'LVFDUGHG
IRRG ZUDSSHUV D VSHQW JORZ URG DQG VFXIIPDUNV RQ
WKH IORRU RI WKH WXQQHO VKRZ WKDW WKH\¶UH KHDGLQJ LQWR
VRPHZKHUHZLWKPRUHSHRSOH
 $WWKLVSRLQW KHURHV ZKR ZDQWHGWR JHWRXWRIWKH
PRRQ PD\ EH WKLQNLQJ WKH\¶UH QHDULQJ WKH H[LW
:521* $16:(5 +HURHV ZKR ZDQWHG WR JDWKHU
LQIRUPDWLRQ DERXW WKH 7KDHUHLDQ PLOLWDU\ ZLOO SUREDEO\
EHWKLQNLQJWKH\¶UHJHWWLQJFORVH8QIRUWXQDWHO\WKH\¶UH
ULJKW
 $QGQRZ«OLVWHQFKHFNV'&

DVRIW³3VVW´IURPDWXQQHOWR\RXUULJKW

6KRRWLQJILUVWDQGDVNLQJTXHVWLRQVODWHULVJURXQGVIRU
DGDUNVLGHSRLQW

$ \RXQJ KXPDQ PDOH ZLWK D VKDYHQ KHDG DQG GDUN
H\HV VWHSV IURP WKH VKDGRZV KLV KDQGV UDLVHG +H
ZHDUVDXQLIRUPRISDOHEOXHDQGJROGDQGKLVFROODU
 3DJH
VSRUWV D WULR RI &RUSRUDO¶V VWDUV ³'RQ¶W VKRRW´ KH TXHVWLRQV DERXW WKH ORFDO HFRQRP\ DQG FDQ SURYLGH
ZKLVSHUV³,QHHGWRWDONWR\RX´ ZKDWHYHULQIRUPDWLRQWKH\QHHGWRYHULI\WKDWKH¶VZKR
 KHVD\V KHLVDQG VLQFHUH+H¶VREYLRXVO\ YHU\ VFDUHG
+HWULHVWRJHWWKHKHURHVWRVWHSLQWRWKHVKDGRZVZLWK DQGZDQWVRXWEXWLVWRRDIUDLGWRWU\WRJHWDZD\RQKLV
KLPEXWLIWKH\DUHQ¶WIHHOLQJWRRWUXVWLQJDQGZKRFDQ RZQ
EODPH WKHP" KH WDONV WR WKHP LQ WKH PDLQ WXQQHO  ,IWKHKHURHVDFFXVHKLPRIEHLQJDGHVHUWHUZKLFK
ZKLOHORRNLQJH[FHHGLQJO\QHUYRXV
 FRPPDQGKHEHJVTXLWHVLQFHUHO\IRUKLVOLIH+HDVNV
³,¶P 2VWHQ GDO¶1D\ , ZDV ERUQ RQ &XODULQ EXW ,
DOZD\V ZDQWHG WR EH D VROGLHU VR , MRLQHG WKH
7KDHUHLDQ 1DY\ 7KRXJKW LW ZRXOG EH JRRG VLQFH ,
FRXOGJHWSRVWHGQHDUKRPH
 ³([FHSW WKHUH¶V D SUREOHP µ&DXVH WKHUH¶V
VRPHWKLQJ JRLQJ RQ ZLWK WKHP VRPHWKLQJ EDG $QG
LW¶V JRLQJ WR KXUW &XODULQ DQG , ZDQW RXW :KHQ ,
IRXQGRXWWKHUHZHUHVRPHIRONVDERXWWRZDONLQWRDQ
DPEXVK GRZQ KHUH , WKRXJKW PD\EH \RX FRXOG KHOS
PHJHWRXW´
 
4XHVWLRQV2VWHQFDQDQVZHU
N $PEXVK" +XK" <HDK <RX JX\V DUH ZDONLQJ LQWR
DQDPEXVK
N '¶RK , KDWH WKH &DUWHO 7KH\ DOZD\V GR WKLV 7KH
&DUWHO" , ILJXUHG ZH NQHZ \RX ZHUH FRPLQJ
EHFDXVHRIWKHVXUYHLOODQFHFDPV
N 6XUYHLOODQFHFDPV":HGLGQ¶WVHHDQ\VXUYHLOODQFH
FDPV7KDW¶VNLQGRIWKHSRLQW
N %XWZHIROORZHGWKLVPDS,VQ¶WLWJRLQJWRWDNHXV
WR WKH VXUIDFH" 1RW D FKDQFH , GRQ¶W NQRZ ZKR
GUHZWKLVPDSEXWLW¶VSUHWW\EDG
N ,¶P SDUW RI WKH 7KDHUHLDQ PLOLWDU\ 7KH\ DUHQ¶W
UHDOO\JRLQJWRDPEXVK PH±DUHWKH\"$OO,NQRZ
LV ZKDW , KHDUG 7KH\ VDLG VRPH RI ³WKRVH
DQQR\LQJ GRJRRGHU W\SHV´ ZHUH KHDGLQJ WKLV
ZD\ DQG ZH VKRXOG VHW XS WKH HZHE EDWWHULHV WR
WDNHWKHPRXW,¶PJXHVVLQJWKDWZDV\RX7KHUH¶V
WKHULJKWQXPEHURI\RX
N , UHDOO\ KDWH WKH &DUWHO <RX NHHS VD\LQJ WKDW ,
JXHVVWKH\FRXOGKDYHVRPHWKLQJWRGRZLWKLW
N 6RZK\VKRXOGZHWUXVW\RX"%HFDXVH,ZDQWRXW,
ZDQWWRSURWHFWP\KRPHDQG,GRQ¶WWKLQNWKDW¶V
ZKDW7KDHUHZDQWV*HWPHRXWRIKHUHDQG,FDQ
JLYH WKH JRYHUQPHQW RI &XODULQ /276 RI GLUW RQ
7KDHUH
N $QGWKH&DUWHO",I,NQHZDQ\WKLQJ,¶GWHOO\RX
N 6RKRZGRZHJHWRXWRIKHUH"-XVWVWLFNZLWKPH
,W¶V QRW JRLQJ WR EH HDV\ :H KDYH WR JHW SDVW
VHYHUDO JXDUG VWDWLRQV DQG , FRXOGQ¶W GR LW E\
P\VHOI %XW VLQFH \RX¶YH JRW D OLWWOH PRUH
ILUHSRZHUWKDQPHLIDQ\WKLQJJRHVZURQJ>+H¶V
ZHDULQJ D KROGRXW EODVWHU VWDQGDUG GUHVV XQLIRUP
LVVXH@
KH LV DQG WKUHDWHQ WR WXUQ KLP RYHU WR WKH 7KDHUHLDQ
WKDWWKH\DWOHDVWDFFRPSDQ\ KLP WRWKHORFDWLRQRIWKH
ILUVW HZHE EDWWHU\ ZKLFK WKH\ KDYH WR VQHDN SDVW
UHJDUGOHVV DQG LI WKH\ VHH WKH EDWWHU\ DQG VWLOO ZDQW WR
WXUQKLPRYHUWKH\FDQGRZKDWWKH\KDYHWRGR
 +H OHDGV WKHP GRZQ D VLGH WXQQHO ZKLFK DQJOHV
VOLJKWO\XSZDUG

$IWHUDIHZGR]HQPHWHUV\RXQRWLFHDQRSHQLQJWRWKH
ULJKW 2VWHQ WXUQV WR \RX SRLQWV WR KLV H\HV WKHQ
SRLQWVWRWKHKROH+HZDQWV\RXWRWDNHDORRN
3HHULQJ WKURXJK \RX VHH DQ HZHE EODVWHU RQ D
WULSRG ZLWK D WULR RI VROGLHUV LQ SDOH EOXH XQLIRUPV
VHDWHG EHKLQG LW 7KH\ KDYH WKHLU IHHW XS DQG DUH
ZDWFKLQJDPRQLWRUVFUHHQ
 ³6R"´ 2QH RI WKHP WXUQV WR WKH RWKHU ³:KHUH
WKH\DW"´
 ³5HSRUWV VDLG WKH\¶UH FRPLQJ > RI SDUW\
PHPEHUV@RIµHP´
 ³+RZPDQ\-HGL"´
 ³%ODVW , DOPRVW IRUJRW WKDW´ +H UHDFKHV LQWR D
SRFNHW DQG SXOOV RXW ZKDW ORRNV OLNH D VPDOO FOHDU
WDEOHW +H SRSV LW LQWR KLV PRXWK JULPDFHV DQG
VZDOORZV³,KDWHWKDW VWXII EXWLW¶VEHWWHUWKDQEHLQJ
-HGLPLQGWULFNHG´

,IWKHUHLVDKHURLQWKHSDUW\ZKRVHEDFNVWRU\LQFOXGHV
EHLQJ D PHPEHU RI WKH 7KDHUHLDQ PLOLWDU\ LQFOXGH WKH
IROORZLQJDVZHOO

³+H\GLG\RXKHDUWKHUH¶VRQHRIRXUVZLWKWKHP"´
 ³<HDK6RPHJX\QDPHG>+HURQDPH@,WKLQNWKH
ZRUGZDVµH[SHQGDEOH¶´7KH\DOOODXJK

$W WKLV SRLQW WKH KHURHV VKRXOG EH SUHWW\ PXFK
FRQYLQFHG WKDW WKH\ QHHG WR JHW RXW RI KHUH ,I WKH\
DUHQ¶W WKH\¶UH SUREDEO\ WRR GXPE WR JR RQ OLYLQJ
DQ\ZD\
 +HUH¶V WKH GHDO 7KH\ DUH JRLQJ WR KDYH WR VQHDN
SDVW IRXU PRUH JXDUG LQVWDOODWLRQV $OO RI WKRVH JXDUGV
KDYHWDNHQWKHLUOLWWOHFOHDUSLOOVVRDUHIXOO\UHVLVWDQWWR
WKH $IIHFW 0LQG DELOLW\ DQG FDQQRW EH PDGH WR KHDU
SKDQWRPVRXQGVRUGHFLGHWKH\GRQ¶WQRWLFHWKHKHURHV
$QGQRQRQHRIWKHPKDYHDQ\H[WUDVRIWKHSLOOVZH
KDYH WR VDYH VRPHWKLQJ IRU WKH KHURHV WR GLVFRYHU LQ
\HDUWZR7KXVWKH\KDYHWRDFWXDOO\EHVQHDN\

 7KLV ZRQ¶W ZRUN :K\" %HFDXVH LW UHTXLUHV HDFK
(YHU\WKLQJ KH WHOOV WKHP LV WKH WUXWK +H FDQ QDPH WKH
KHUR DV WKH\ PRYH SDVW HDFK LQVWDOODWLRQ RQ WKHLU ZD\
VWUHHW KH OLYHG RQ LQ *DGULQ 7DUDVLQ :D\ DQVZHU
RXWRI7LOQHVWRPDNHDVXFFHVVIXO0RYH6LOHQWO\FKHFN


7LOQHV5LVLQJ  3DJH
RSSRVHG E\ WKH /LVWHQ FKHFNV IRU WKH JXDUGV DW HDFK +LJKHU7LHU
VWDWLRQ$QG,¶YHDOUHDG\UROOHGWKHOLVWHQFKHFNV 7KDHUHLDQ*XDUGVYDULRXV+XPDQ7KXJ6FRXW
 6WDWLRQRQH ,QLW  'HIHQVH  6SG P 93:3  $WN 
 6WDWLRQWZR PHOHHGEDWRQRUUDQJHGGEODVWHUSLVWRO
 6WDWLRQWKUHH 64LPPXQHWR $IIHFW0LQG 69)RUW5HI:LOO
 6WDWLRQIRXU 6=05HS6WU'H[&RQ,QW:LV
:KDWWKLVPHDQVLVLQDKLJKWLHUJURXSHYHU\RQHLQWKH &KD
SDUW\ PXVW PDNH D '&  0RYH 6LOHQWO\ FKHFN DW WKH  6NLOOV /LVWHQ  ,QWLPLGDWH  .QRZOHGJH
ILUVWVWDWLRQRURQHRIWKHJXDUGVKHDUVWKHP'&IRU 0LOLWDU\3URWRFRO3URIHVVLRQ*XDUG3LORW
ORZHU WLHU $W VWDWLRQ WZR HYHU\RQH QHHGV WR PDNH D  )HDWV :HDSRQV VLPSOH EODVWHU SLVWROV  ULIOHV
'&  FKHFN  DW ORZHU WLHU DQG VR RQ ,¶P QRW 3RLQW %ODQN 6KRW :HDSRQ )RFXV EODVWHU SLVWRO
JRLQJ WR GR WKH FKHHVH\DXWKRU WULFN DQG GHILQH 2VWHQ 6WDUVKLS2SHUDWLRQVVSDFHWUDQVSRUWV*UHDW)RUWLWXGH
DV DXWRPDWLFDOO\ PLVVLQJ RQH RI WKH UROOV ,I HYHU\RQH  (TXLSPHQW %ODVW KHOPHW DQG YHVW EODVWHU SLVWRO
PDNHV DOO WKHLU UROOV DQG ER\ DUH WKH RGGV DJDLQVW ILHOGLVVXH
7+$7WKHQWKH\PDNHLWRXWZLWKRXWDILJKW,WZRQ¶W
XVXDOO\KDSSHQ2VWHQKDVWRKLV0RYH6LOHQWO\DQG
\RX VKRXOG UROO KLV FKHFNV ZKHUH HYHU\RQH FDQ VHH
WKHP 5HPHPEHU ± LI KH ZHUH UHDOO\ JRRG DW EHLQJ
VQHDN\KHZRXOGKDYHJRWWHQRXWRIKHUHZLWKRXWKHOS
+H¶V DQ H[FHOOHQW VROGLHU DQG YHU\ FRPSHWHQW EXW
VQHDNLQJKDVQHYHUEHHQKLVVWURQJVXLW
 &OHDUO\WKLVLVQ¶WOLNHO\WRZRUN6RZKDWZH¶OOHQG
XSZLWKLVDUXQQLQJILJKWDVWKHKHURHVWU\WRJHWRXWRI
7LOQHV
 7KHILJKW VKRXOGODVW IURPURXQGVURXQGVLI
WKH\ GRQ¶W JHW KHDUG XQWLO WKH ODVW VWDWLRQ  URXQGV LI

7KHUHDUHIRXUJXDUGVDWHDFKVWDWLRQDQGLIWKHKHURHV
EORZWKURXJKWKRVH\RXFDQWRVVPRUHDWWKHP7KH\¶UH
MXVWWKXJV ZLWKDVLQJOH OHYHO RID KHURLFFODVV VRWKH\
VKRXOGQ¶WEHWKDWWRXJK
 7KH  URXQGV HVWLPDWH RQ KRZ ORQJ WKH FRPEDW
ODVWV DVVXPHV LW¶V D UXQQLQJ FRPEDW ,I WKH KHURHV VWRS
DQGILJKWWKH\FDQMXVWNHHSILJKWLQJXQWLOWKH\UXQRXW
RI EDG JX\V RU XQWLO VRPHRQH JHWV KLW ZLWK D FULW DQG
IDOOV GRZQ 2VWHQ ZLOO EH WU\LQJ WR FRQYLQFH WKHP WR
NHHS PRYLQJ VLQFH KH NQRZV WKH H[WHQW RI WKH IRUFHV
KHUHDQGGRHVQ¶WZDQWWRGHDOZLWKWKHPRQFHWKHDODUP
WKH\ERWFKDUROODWWKHILUVWRQH
 2QH WKLQJ WKDW ZRXOG EH :21'(5)8//<
FLQHPDWLFLVDKHURZKRWDNHVSRLQWDQGJRHVVFUHDPLQJ
GRZQ WKH FRUULGRU ILULQJ KLV EODVWHU LQWR WKH FHLOLQJ WR
JHWWKHJXDUGVWRFKDVHKLPVRWKDWWKHUHVWRIWKHSDUW\
FDQFDWFKWKHPIURPEHKLQG,W¶VWKDWNLQGRIZDFNLQHVV
WKDW GHVHUYHV D )RUFH SRLQW DV GRHV DQ\WKLQJ HOVH
HVSHFLDOO\KHURLFWKDWOHWVWKHKHURHVJHWRXWRIKHUH
 )RUSXUSRVHVRIWKHILJKW2VWHQKDVDUDQJHGDWWDFN
PRGLILHURIXVLQJKLVKROGRXWEODVWHUDGHIHQVHRI
DQGDQLQLWLDWLYHPRGLILHURI

/RZHU7LHU
7KDHUHLDQ*XDUGVYDULRXV+XPDQ7KXJ6FRXW
,QLW  'HIHQVH  6SG P 93:3  $WN 
VWDUWV VRXQGLQJ ,I VRPHRQH IDOOV KH ZLOO SLFN XS WKH
ERG\ DQG KHDG IRU WKH VXUIDFH *HWWLQJ RXW LV D JRRG
LGHD
 ,I WKH\ PDQDJH WR VQHDN SDVW HYHU\WKLQJ RU EOXII
WKHLUZD\SDVWRURWKHUZLVHUROHSOD\WKHLUZD\RXWRILW
WKHQ WKH EODVWHU ILUH LQ WKH FRQFOXVLRQ FRPHV IURP WKH
VHFRQG XQLW ZKR ILJXUHG RXW ZKDW¶V EHHQ KDSSHQLQJ
DQG KDYH FRPH WR WU\ WR VWRS WKH GHVHUWHU DQG KLV
DFFRPSOLFHV


&RQFOXVLRQ
7KHWXQQHODKHDGRI\RXVHHPVEULJKWHUDQGLWRSHQV
RXWLQWRDURFNRXWFURSSLQJEHVLGHRQHRIWKHODQGLQJ
PHOHHGEDWRQRUUDQJHGGEODVWHUSLVWRO
64LPPXQHWR $IIHFW0LQG 69)RUW5HI:LOO
6=05HS6WU'H[&RQ,QW:LV
&KD
 6NLOOV /LVWHQ  ,QWLPLGDWH  .QRZOHGJH
GRPHVRQWKHVXUIDFHRIWKHPRRQ(YHU\WKLQJLVLQD
VWDWHRIGLVDUUD\EXWDV\RXHPHUJHIURPWKHWXQQHOD
SDLURIILJXUHVVWULGHWRZDUGV\RXDKXPDQPDOHZLWK
GDUNKDLUVHULRXVH\HVDQGDVDOWDQGSHSSHUJRDWHH
DQG D WKLFNFKHVWHG :RRNLHH ZLWK D SDLU RI EUDLGV LQ
0LOLWDU\3URWRFRO3URIHVVLRQ*XDUG3LORW KLVEHDUG
 )HDWV :HDSRQV VLPSOH EODVWHU SLVWROV  ULIOHV 
3RLQW %ODQN 6KRW :HDSRQ )RFXV EODVWHU SLVWRO 7KLV LV 0DVWHU /DQLXV 4HO%HUWXN PDVWHU RI WKH
6WDUVKLS2SHUDWLRQVVSDFHWUDQVSRUWV $FDGHP\DQG.LUORFFDPDVWHURIOLJKWVDEHUWUDLQLQJDW
 (TXLSPHQW %ODVW KHOPHW DQG YHVW EODVWHU SLVWRO WKH $FDGHP\ $Q\ 3DGDZDQ UHFRJQL]HV WKHP
ILHOGLVVXH ,00(',$7(/<DQGDQ\QRQ-HGLKHURQHHGRQO\JHW
 D  RU EHWWHU  XQVNLOOHG DOORZLQJ D UROO LV
DSSURSULDWHKHUHJLYHQKRZZHOONQRZQWKHVHWZRDUH
RQ.QRZOHGJH&XODULQ



7LOQHV5LVLQJ  3DJH
7KH\ SXVK SDVW \RX DQG .LUORFFD LJQLWHV KLV WKH\UHFHLYHIXOO$GYHQWXUH([SHULHQFH[SIRU
OLJKWVDEHU MXVW DV D IOXUU\ RI EODVWHU EROWV FRPH FRUH /) SORW VFHQDULRV  IRU QRQFRUH /)
WKURXJKWKHPRXWKRIWKHWXQQHO+HIOLFNVWKHPDVLGH VFHQDULRV
DV LI WKH\ ZHUH QRWKLQJ DQG DV KH GRHV VR 0DVWHU  $VVLJQ GLVFUHWLRQDU\ UROHSOD\LQJ H[SHULHQFH 
/DQLXVJHVWXUHVDWDURFNDERYHWKHWXQQHO¶VPRXWK,W  SRLQWV 7KHVH VKRXOG UHZDUG DFFXUDWH
OLIWVVPRRWKO\IURPLWVSHUFKGULIWLQJGRZQWRVHWWOHLQ FKDUDFWHU SRUWUD\DO WKURXJKRXW WKH DGYHQWXUH QRW
IURQWRIWKHH[LW MXVWKRZZHOOWKHKHURLQWHUDFWHGVRFLDOO\'R127
 DXWRPDWLFDOO\DZDUGPD[UROHSOD\LQJ;3FRQVLGHU
/DQLXV DQG .LUORFFD DUH KHUH EHFDXVH /DQLXV VHQVHG D FDUHIXOO\ KRZ ZHOOWKHSOD\HUVVWD\HGLQFKDUDFWHU
GLVWXUEDQFH LQ WKH )RUFH HPDQDWLQJ IURP 7LOQHV ,Q 7KLV LV \RXU RSSRUWXQLW\ WR UHZDUG DSSURSULDWHO\
RWKHU ZRUGV KH PDGH WKDW )DU 6HHLQJ FKHFN« 7KH\ FLQHPDWLFEHKDYLRUVRXVHLW
EURXJKW D UHOLHI WHDP ZLWK WKHP WR DLG LQ WKH UHVFXH 
HIIRUW EXW HYHQ WKHQ /DQLXV IHOW D GHHSHU VHQVH RI $GYHQWXUH([SHULHQFH$ZDUG
ZURQJQHVV +H LV YHU\ LQWHUHVWHG LQ ZKDW WKH KHURHV 'LG WKH KHURHV ILQG RXW DERXW WKH &DUWHO DQG WKH
KDYH WR UHSRUW DQG RIIHUV WR WDNH 2VWHQ VRPHZKHUH 7KDHUHLDQV DQG WU\ WR ILQG WKH 7KDHUHLDQV" ,I VR HDFK
VDIHZKHUHKHFDQEHJLQWRUHEXLOG KHURZKRVXUYLYHGUHFHLYHV[S
 2VWHQLVH[WUHPHO\JUDWHIXOWRWKHKHURHV 
 $GYHQWXUH([SHULHQFH [S
³, FRXOGQ¶W KDYH PDGH LW ZLWKRXW \RX IULHQGV 1RZ 5ROHSOD\LQJ([SHULHQFH [S
,¶P JRLQJ WR WU\ WR UHSD\ \RXU NLQGQHVV E\ VKDULQJ 
ZKDW,NQRZZLWKWKHORFDOJRYHUQPHQWVDQGZLWKWKH 7RWDO3RVVLEOH([SHULHQFH [S
$FDGHP\,¶OOEHLQWRXFKZLWK\RXVRRQ<RXKDYHP\ 
ZRUG´ ,I WKH KHURHV GLG QRW FRPSOHWH WKH VFHQDULR EHFDXVH RI
 WLPH FRQVWUDLQWV EXW ZHUH ³RQ WKH ULJKW WUDFN´ \RX
2Q /DQLXV¶V DGYLFH KH ZRQ¶W WHOO WKHP DQ\ PRUH RI PD\ DZDUG ò DGYHQWXUH H[SHULHQFH ,I WKH KHURHV
ZKDW KH NQRZV LQ RUGHU WR SURWHFW WKHP +H ZLOO VXFFHHGHG LQ OHDUQLQJ DERXW ERWK WKH &DUWHO DQG
KRZHYHU H[WHQG D VSHFLDO RIIHU WR DQ\ KHUR ZKR KDG 7KDHUHLDQ EDVHV EXW LQWHQGHG WR OHDYH ZLWKRXW
EHHQ D VROGLHU LQ WKH 7KDHUHLDQ PLOLWDU\ XS XQWLO WHQ LQYHVWLJDWLQJ WKH 7KDHUHLDQ EDVH DZDUG WKHP ô
PLQXWHV DJR ZKHQ WKH\ IRXQG RXW WKH\ ZHUH DGYHQWXUHH[SHULHQFH
H[SHQGDEOH 
 
³:KDW &XODULQ UHDOO\ QHHGV LV D PLOLWLD RI KHU RZQ ,
ZRXOG YHU\ PXFK OLNH WR VWDUW RQH :RXOG \RX EH /RRW6XPPDU\
LQWHUHVWHGLQDVVLVWLQJPHLQKHOSLQJPHEXLOGVXFKD ,ILW¶VQRWRQWKLVOLVWWKHKHURHVFDQQRWNHHSLW7KLVLVD
PLOLWDU\"´ KRXVH UXOH WKDW RYHUULGHV ZKDW WKH\ PD\ DFWXDOO\
 DFTXLUH LQ WKH VFHQDULR 3OHDVH DGYLVH DQ\RQH ZKR
+HDVNVQRQ7KDHUHLDQVROGLHUVLIWKH\DUHLQWHUHVWHGLQ ZDQWV WR NHHS WKH ELRWHFK RXW RI WKH GHDG SLORW¶V KHDG
EHLQJ LQYROYHG RQFH LW¶V XS DQG UXQQLQJ EXW :,// WKDW DFWLYHO\ DWWHPSWLQJ VXFK ZRXOG HDUQ WKHP D '63
127 RIIHU WKHP WKH FKDQFH WR KHOS EXLOG WKH PLOLWDU\ DQG LI WKH\ VXFFHHG WKH ELRWHFK ZLOO EH FRQILVFDWHG E\
+H¶VVRPHWKLQJRIDQHOLWLVWDQGZDQWVVROGLHUVIURPDQ WKH$FDGHP\
DUP\KHNQRZVILUVWDQGIRUHPRVW 
 :LWK WKDW KH LV ZKLVNHG DZD\ QRW WR EH KHDUG )URP0DULV*HQ
IURPDJDLQ«XQWLOQH[W\HDU« N 2QHFDVHERWWOHV5RGLDQ$OH
 
+HUH(QGV7LOQHV5LVLQJ )URPWKH&UDVKHG6KLS

N &RPELQDWLRQKRORUHFRUGHUKRORSURMHFWRU


([SHULHQFH3RLQW6XPPDU\ )URPWKH&DUWHO
([SHULHQFH LV FDOFXODWHG DV IROORZV IRU /LYLQJ )RUFH N ,QDFFXUDWHPDSRIWKHWXQQHOVRI7LOQHV
HYHQWV 
 ([SHULHQFH DZDUGV LQ WKH 6WDU :DUV 5ROHSOD\LQJ )URP9HUJD0HU0LQLQJ&RPSDQ\
*DPH DUH QRW PDGH IRU DFKLHYLQJ REMHFWLYHV EXW N )25 -(', 21/< FHUWHG RQH SHU -HGL 2XW RI
LQVWHDGIRUVXFFHVVIXOO\FRPSOHWLQJDQDGYHQWXUHRI JUDWLWXGH PRVW VLQFHUH IRU WKH DVVLVWDQFH SURYLGHG
D JLYHQ OHQJWK 7KXV LI WKH KHURHV VXUYLYHG DQG WKH HPSOR\HHV RI 900& GXULQJ WKH FULVLV RQ
DFFRPSOLVKHG WKH SULPDU\ JRDO RI WKH DGYHQWXUH 7LOQHV WKH FRPSDQ\ JUDWHIXOO\ DFNQRZOHGJHV \RX


7LOQHV5LVLQJ  3DJH
 ZLWK WKH IROORZLQJ :KHQ WKH WLPH FRPHV IRU WKH
-HGL QDPHG DERYH WR FRQVWUXFW KLV RU KHU RZQ
OLJKWVDEHU KH RU VKH PD\ FRQWDFW D UHSUHVHQWDWLYH
RI900&WRUHFHLYHDFRORUFU\VWDODSSURSULDWHWR
KLV RU KHU FRQVWUXFWLRQ 3HU ORQJVWDQGLQJ
DJUHHPHQWV ZLWK WKH -HGL $FDGHP\ QR 3DGDZDQ
ZLOO EH VXSSOLHG ZLWK UHG IRFXV FU\VWDOV EXW RWKHU
FRORUV DYDLODEOH LQFOXGH EOXH JUHHQ WHDO YLROHW
\HOORZ DQG SLQN 0DUN WKH FRORU \RX ZLVK WR
UHFHLYH ZKHQWKHWLPHFRPHVDQG900&REWDLQV
DSSURYDO IURP \RXU 0DVWHU WR SURYLGH \RX WKH
FU\VWDOVDQGZHZLOOEHVXUHWRKDYHWKHPDYDLODEOH
LQLQYHQWRU\^$Q\3DGDZDQZKRDWWHPSWVWRIRUJH
RQH RI WKHVH RU DOORZV VXFK IRUJHU\ WR WDNH SODFH
RURWKHUZLVHDLGVLQWKHGLVVHPLQDWLRQRIOLJKWVDEHU
FRPSRQHQWV WR QRQ-HGL ZLOO EH LPPHGLDWHO\
H[SHOOHG IURP WKH $FDGHP\ DQG EURXJKW XS RQ
IRUPDOFKDUJHVEHIRUHWKH&RXQFLORQ&RUXVFDQW/
4%`

N )25 121-(', FHUWHG RQO\ RQH 2XW RI
JUDWLWXGH PRVW VLQFHUH IRU WKH DVVLVWDQFH SURYLGHG
WKH HPSOR\HHV RI 900& GXULQJ WKH FULVLV RQ
7LOQHV WKH FRPSDQ\ JUDWHIXOO\ DFNQRZOHGJHV \RX
ZLWK WKH IROORZLQJ D VHW RI FU\VWDOV W\SLFDOO\
XWLOL]HG LQ FRQVWUXFWLRQ RI WKH 76 OLJKW EODVWHU
ZKLFK ZLOO LQFUHDVH WKH SHQHWUDWLRQ SRZHU RI DQ\
DSSURSULDWH ZHDSRQ LQWR ZKLFK WKH\ DUH LQVWDOOHG
,Q JDPH PHFKDQLF WHUPV LI WKH KHUR VSHQGV 
FUHGLWVWRKDYHWKHPLQVWDOOHGLQD KROGRXWEODVWHU
EXW127DQ\RWKHUNLQGRIEODVWHUWKH\DUHVL]HG
IRU D KROGRXW WKH WKUHDW UDQJH RI WKH ZHDSRQ LV
LQFUHDVHG WR  DQG LW JDLQV D  HTXLSPHQW
ERQXVWRKLWDQGGDPDJH



7LOQHV5LVLQJ  3DJH
3OD\HU+DQGRXW7KH7H[WRQWKH)ORRU

$ GD\ ZLOO FRPH ZKHQ GDUNQHVV WKUHDWHQV &XODULQ 7KH GDUNQHVV ZLOO
EHJLQZLWKLQWKHFRQILQHVRIWKLVPRRQDQGZLOOULVHWRHQFRPSDVVDOO
RI WKH V\VWHP DQG WKH VWDUV DQG PRRQV DQG SODQHWV ZLOO NQRZ IHDU
6HHN RXW WKH GDUNQHVV :KHUH WKH IRFXV LV IRXQG ORRN WR WKH VWRQH
EHQHDWK IRU WKH PLVVLQJ SLHFH RI WKH SLFWXUH 7KURXJKVWRQH DQG VWDU
ILQGWKHGDUNQHVVDQGEULQJLWWRWKHOLJKW2QO\WKURXJKWKHIRUFHV
RIJRRGQHVVDQGKRSHFDQWKHGDUNQHVVEHNHSWIURPGHVWUR\LQJDOOWKDW
ZHORYH7KLVLVWKHIXWXUHDV,KDYHIRUHVHHQLW
 ± 1=


7LOQHV5LVLQJ  3DJH
3OD\HU+DQGRXW7KH&DSWDLQ¶V+RORUHFRUGLQJ

$V\RXILQLVKWLQNHULQJZLWKWKHSURMHFWRUWKHPRDQLQJVWRSVDQGDQLPDJHIOLFNHUVLQWKHDLUEHIRUH\RX
)URPEHKLQGDQRSDTXHEODVWVKLHOG\RXKHDUWKHVRXQGRIUDJJHGEUHDWKLQJ 

³&DSWDLQ'HODV)RWULQ6SHFLDO5HVHUYHV3URMHFW:RRGHQ5DQFRU2QDURXWLQHFLUFXLWRIPLQLQJ
PRRQ DERYH WDUJHW HQFRXQWHUHG DWPRVSKHULF GLVWXUEDQFH´ +H PRDQV DQG WKH PRDQ LV YHU\
IDPLOLDU ³(QJLQHV JDYH RXW %URXJKW VKLS LQ IRU ODQGLQJ SXQFWXUHG FUXVW &UDVKHG WKURXJK
PXOWLSOHOD\HUV6WXFNIDUEHORZVXUIDFHSLQQHGLQ$WWHPSWVWRH[WULFDWHVHOIKDYHIDLOHG

³3XUVXDQWWR2UGHUKDYHDYRLGHGDFWLYDWLQJKRPLQJEHDFRQ1RFKDQFHRIHVFDSH7RDLG
LQUHFRYHU\RIVKLSZLOODFWLYDWHEHDFRQVRRQ

³%HOLHYHPLQLQJPRRQ«JRRGORFDWLRQ«QRRQHORRNVDWLW$WPRVSKHULFGLVWXUEDQFHV«RQO\«
SUREOHP«´

7KHQWKHUHDUHVHYHUDOSDLQIXOPRDQVDORQJVLOHQFHDQGWKHUHFRUGLQJHQGV



7LOQHV5LVLQJ  3DJH
'0$LG7KH'HVFHQW







7LOQHV5LVLQJ  3DJH
'0$LG*HQHUDO/D\RXWRIWKH0LQH&RPSOH[


7KH8QGHUJURXQG

&DUWHO
RU\
UDMHFW
7
6KLS
JK
5RX
&DDULWH
F

1HVW

6KLS


7LOQHV5LVLQJ  3DJH
 &ULWLFDO(YHQW6XPPDU\
7LOQHV5LVLQJ


 'LGWKHKHURHVVXFFHHGLQUHWULHYLQJWKH&DSWDLQ¶VPHVVDJH"

<HV   1R

 'LG WKH KHURHV LQYHVWLJDWH /RRJJ¶V FODLPV RI D PLOLWDU\ SUHVHQFH RU GLG WKH\ KHDG IRU WKH VXUIDFH
LPPHGLDWHO\"

,QYHVWLJDWHG  5DQ

 'LGWKHKHURHVWDNH2VWHQZLWKWKHP"

<HV   1R

 ,IVRGLGKHVXUYLYH"

<HV   1R

 'LGWKHKHURHVFRPHWRWKHFRQFOXVLRQWKDW/RRJJZDVDFWXDOO\RQ7LOQHVUDWKHUWKDQLQKLVVKLS"

<HV   1R


 :HUHDQ\RI WKHKHURHVHQUROOHGLQWKH7KDHUHLDQ PLOLWDU\ ZKHQWKHHYHQW VWDUWHGDQGDFFHSWHGWKHRIIHUWR
KHOS2VWHQIRUPWKH&XODULQ0LOLWLDDWWKHHYHQW¶VFRQFOXVLRQ",IVROLVWSOD\HUQDPHKHURQDPHDQG53*$
EHORZ

BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB


&RQYHQWLRQ&RRUGLQDWRU 
7RUHSRUWWKHVHUHVXOWVIRUHYHQWVGXULQJWKHPRQWKRI1RYHPEHURQO\\RXPD\PDLOWKHPWR
53*$/LYLQJ)RUFH32%R[5HQWRQ:$
2UHPDLOWR/)3ORWV#USJDQHW
2UID[WR$WWHQWLRQ/LYLQJ)RUFH&ULWLFDO(YHQWV




7LOQHV5LVLQJ  3DJH