Y! Y-!

D"2[%2G%%2
CIN2N22M.
K*%2B-
C+

=XOZZKTH_*GTG0UXMKTYKT
$FWLRQ6\VWHPUXOHVFUHDWHGE\0DUN$UVHQDXOW 3DWULFN6ZHHQH\
$FWLRQ6\VWHP&RUH5XOHVZULWWHQE\0DUN$UVHQDXOW3DWULFN6ZHHQH\ 5RVV:LQQ
 /TZXUJ[IZOUT

/9@7CA9HC=;5B;
:HOFRPH WR 6SHFLDO (GLWLRQ 9ROXPH  7KLV OLNHDFRFNURDFKEODVWHGZLWKSHVWLFLGHZHDOVRSURYLGH\RXDQ
VSHFLDOHGLWLRQZDVQ
WHYHQRQWKHVFKHGXOHDPRQWKDJR VPDOO DUUD\ RI FKHPLFDO ZHDSRQV NQRZQ WR KDYH EHHQ
2I FRXUVH EDUHO\ RYHU D PRQWK DJR ZH ZHUHQ
W HYHQ DW PDQXIDFWXUHGIRUWKH,UDTLDUVHQDOVDWRQHWLPHRUDQRWKHULQWKH
ZDU ZLWK ,UDT 7KHQ DJDLQ LW ZDVQ
W DFWXDOO\ D ZDU VLQFH ODVW  \HDUV DORQJ ZLWK SURSHU UXOHV WR DFFXUDWHO\ SRUWUD\
WKHUH ZDV QR IRUPDO GHFODUDWLRQ RI ZDU :KLOH ULJKW QRZ WKHP VLQFH WKH EULHI PHQWLRQ RI 6DULQ LQ WKH ' 0RGHUQ
WKH HQWLUH VLWXDWLRQ ZDV UHIHUUHG WR DV 2SHUDWLRQ ,UDTL 5ROHSOD\LQJ *DPH H[KLELWV D ODFN RI HYHQ UHPRWHO\ FRPSHWHQW
)UHHGRP,ZRXOGQ
WEHVXUSULVHGLI\HDUVIURPQRZLW UHVHDUFK 6DULQ IRU H[DPSOH QHHG QRW EH LQKDOHG WR KDYH LWV
LVOLVWHGLQWKHKLVWRU\ERRNVDVWKH6HFRQG$PHULFDQ,UDTL HIIHFWLWFDQEHDEVRUEHGWKURXJKWKHVNLQOLNHDOOQHUYHDJHQWV
:DU
$Q\ZD\WKLVSDUWLFXODUERRNGHWDLOVWKHZHDSRQV
W DIIHFW \RXU
PRVWFRPPRQO\XVHGE\WKHPDMRUPLOLWDU\IRUFHVLQYROYHG
LQ,UDTWKH,UDTL$UP\WKH86$UP\DQG860DULQHVDQG
WKH %ULWLVK PLOLWDU\ :H GLG OHDYH RXW D IHZ WKLQJV RQH
PLJKW H[SHFW WR KDYH EHHQ FRPPRQ 7KH 86 $UP\
V 0 VDLGDERXWFOHDQXQGHUZHDU,WQRUPDOO\HQGVZLWKWKHIDLOXUHRI
6HUYLFH3LVWROLVRPLWWHG:KLOHSUHVHQWRGGVDUHWKDWQRW
D VLQJOH RQH ZDV ILUHG GXULQJ WKH FRQIOLFW 6DPH ZLWK WKH
VEHDWLQJRU\RXUOXQJVEUHDWKLQJDQG\RXSURFHHGWR
-DYHOLQ PLVVLOH ODXQFKHU <HV ZH VDZ  -DYHOLQ PLVVLOHV
ODXQFKHG RQ RQH VDWXUGD\ QLJKW GXULQJ D IXOO\ WHOHYLVHG
IRXUKRXUVNLUPLVKRQWKHRXWVNLUWVRIWKHERUGHUSRUWRI8P
4DVU%XWWKRVHWZRODXQFKHVFRVWWKH86JRYHUQPHQWRQ
WKH RUGHU RI  *XLGHG PLVVLOHV DUH H[SHQVLYH 2Q
WKH IOLS VLGH WKRVH 0DULQHV KDG WKH\ XVHG WKHLU 60$:
URFNHW ODXQFKHU FRXOG KDYH GXPSHG FORVH WR  60$:
+('3 URFNHWV LQWR WKH EDWWOH IRU WKH VDPH FRVW :LWK DOO
WKH FRVW FXWWLQJ DQG MRLQW SURMHFWV WKH PLOLWDU\ LV HQJDJHG
P QRW JRLQJ WR WDNH XS WRR PXFK RI \RXU WLPH
LQ,
PVXUHWKDWSODWRRQOHDGHUZLOOHQGXSFDWFKLQJKHOOIRU ZLWK PH \DSSLQJ DZD\ KHUH LQ WKH LQWUR 2Q WR WKH JDPH
XVLQJWKRVH-DYHOLQPLVVLOHV
6LQFHZDUZLWK,UDTFDQ
WEHFRPSOHWHZLWKRXWWKH
WKUHDW RI VXGGHQO\ G\LQJ RQ \RXU EDFN SDLQIXOO\ WZLWFKLQJ
6CIHH<9*9J=G=CBG
:HOODV\RXFDQVHHWKLVLVDUHYLVHGHGLWLRQRIWKH
6SHFLDO (GLWLRQ RI %LJ %DQJ &RYHULQJ WKH VHFRQG $PHULFDQ
ZDUDJDLQVW,UDTWKHUHZHUHMXVWDIHZVKRUWZHHNVLQZKLFK
WRGHFLGHWRSURGXFHWKLVYROXPHUHVHDUFKLWZULWHLWDQGVHW
XSWKHOD\RXW&RQVLGHULQJWKDW WKHILQDOGHFLVLRQWRSURGXFH
WKH ERRNZDVQ¶W PDGHXQWLO ZH ZLWQHVVHG WKH OLYH EURDGFDVW
RIDIRXUKRXUEDWWOHRQWKHRXWVNLUWVRI8P 4DVUWZRZHHNV
LQWRWKHZDUZHUHDOO\KDGYHU\OLWWOHWLPHDWDOO7KHERRNZDV
FREEOHG WRJHWKHU LQ XQGHU  GD\V 0DQ\ HUURUV DQG
RPLVVLRQVPDGH LWLQWR WKHERRNDVZHOODVDQHHGWRPDNH
IRUPDWWLQJFKDQJHVWRDOORZKROHSXQFKLQJ7KLVUHYLVLRQIL[HV
WKHVHSUREOHPV
7KH ILUVW IL[ LV WKH DGGLWLRQ RI D ZLGH UDQJH RI
ZHDSRQV :H¶YH DGGHG WKH  QHZ 86 ZHDSRQV  QHZ
%ULWLVKZHDSRQVDQG$XVWUDOLDQZHDSRQV
7KH VHFRQG IL[ LV D ORW RI HGLWLQJ /D\RXW QHHGHG
UHYLVLRQIRU KROHSXQFKLQJ+HDGHUVQHHGHGVRPHH[WHQVLYH
UHSDLUVDQGWKHUHZHUHDORWRIHUURUVRQWKHVWDWLVWLFVWDEOHV
WKDQNV WR FRS\LQJ WHPSODWHV IURP RQH ZHDSRQ WR WKH QH[W
7KH ELJJHVW H[DPSOH RI WKLV WKDW VWRRG RXW ZDV ODEHOLQJ WKH
0$ VWDWV IRU WKH ' 0RGHUQ 5ROHSOD\LQJ *DPH DV
0LODQ$7*0VWDWV7KHUHDVRQWKLVVWDQGVRXWVRPXFKKHUH
LQ WKH RIILFH LV GXH WR WKH IDFW WKDW ZH WKRXJKW ZH KDG
FRUUHFWHGWKDWRQHEXWLWVWLOOHQGHGXSLQWKHILQDOFRS\RB2
MXVW ORRN DW KRZ QLFRWLQH SDWFKHV ZRUN ZLWK HTXDOO\ SRWHQW
HIIHFWV WR LQKDODWLRQ RU LQJHVWLRQ ,W DOVR GRHVQ
KHDOWK,WDWWDFNV\RXUQHUYRXVV\VWHP,WGHVWUR\VPRWRUFRQWURO
DQGSURGXFHVFRQYXOVLRQVZKLFKFDQEHVWURQJHQRXJKWREUHDN
\RXU ERQHV <RX SLVV \RXU SDQWV QR PDWWHU ZKDW \RXU PRWKHU
RQHRUPRUHDXWRQRPRXVQHUYRXVIXQFWLRQVQDPHO\WKHHQGRI
\RXUKHDUW
GLH IURP DVSK\[LDWLRQ LQ D PDWWHU RI PLQXWHV ,I \RX ZDQW WR
ZLWQHVV\RXUGHDWKE\VDULQLQPLQLDWXUHEX\DFDQRIUDLGILQG
DELJEXJDQGVSUD\LWXQWLO LWIOLSVRYHURQLWVEDFNDQGGLHVD
WZLWFKLQJGHDWK6RVRPHERG\SOHDVHWHOOPHZKDWWKHKHOODQ\
RIWKDWKDVWRGRZLWKORVLQJ&21"
$Q\ZD\ZH SUHSDUHGDOLVWLQJRI MXVWDKDQGIXO RIWKH
KXQGUHGV RI FKHPLFDO DQG ELRORJLFDO ZHDSRQV SURGXFHG LQ WKH
ODVWKXQGUHGRUVR\HDUV
:HOO ,
PDWHULDO
7KH ODVW FKDQJH LV VRPH PLVVLQJ UXOHV UHJDUGLQJ
DQWLDUPRU ZHDSRQU\ :KLOH WKH ' 0RGHUQ 5ROHSOD\LQJ
*DPH WDNHV JRRG ILUVW VWHSV LQ UHJDUGV WR WKLV QRW DOO $7
ZHDSRQV DUH FUHDWHG HTXDO ,Q D %XOOHW 3RLQWV DUWLFOH RQ WKH
:27& ZHEVLWH &KDUOHV 5\DQ VXJJHVWV DOO $7 ZHDSRQV
QHJDWHSRLQWVRIKDUGQHVV,¶PVRUU\EXW,GRQ¶WDJUHHZLWK
WKLV DW DOO ,W VXJJHVWV WKDW DOO DQWLDUPRU ZHDSRQV DUH
HVVHQWLDOO\FUHDWHGHTXDO,¶PVRUU\EXWD::YLQWDJH3,$7
WKDWSHQHWUDWHVOHVVWKDQPPRIDUPRULVQRWHTXDOWRD
0LODQ WKDW SHQHWUDWHV  PP RI DUPRU $GGLWLRQDOO\ WKH
YHU\ UXOHV SUHVHQWHG LQ WKH ' 0RGHUQ 5ROHSOD\LQJ *DPH
DUHVHOIFRQWUDGLFWLQJLWVD\VWKH0/$:LJQRUHGSRLQWV
RI KDUGQHVV EXW DFFRUGLQJ WR WKH SK\VLFV WKH /$: XVHV
+($7 WHFKQRORJ\ WR FXW WKURXJK DUPRU ZLWK D MHW RI
VXSHUKHDWHGSODVPD$QG WKLVSODVPDMHW LQWXUQ VKRXOG EH
GHVLJQHGDVDQHQHUJ\DWWDFNZKLFKE\WKHUXOHVVKRXOGRQO\
GR KDOI GDPDJH DJDLQVW D YHKLFOH 6R ZH¶YH JRW VRPH QHZ
UXOHVWKRXJKWRXWWKDWIL[DOORIWKDW
$Q\ZD\ DV \RX FDQ VHH WKLV LV RQH FDVHZKHUH D
UHYLVLRQLVQ¶WMXVWDFRQYHQLHQFHRIWU\LQJWRIXOILOODQDXWKRU¶V
VHQVHRISHUIHFWLRQLVPEXWDQDFWXDOQHFHVVLW\WRFOHDQXSD
SURGXFW WKDW ZDV UXVKHG RXW WKH GRRU LQ D ULGLFXORXVO\ VKRUW
SHULRG RI WLPH :HOO DW OHDVW \RX¶UH JHWWLQJ PRUH WKDQ D
GR]HQQHZZHDSRQVRXWRIRXUVORSSLQHVV

J-J* 2A-
2QH LPSRUWDQW WKLQJ DERXW WRGD\¶V DQWLDLUFUDIW
ZHDSRQU\ LV WKH IDFW WKDW PDFKLQHV GR PRVW RI WKH ZRUN
7KH VNLOOV LQYROYHG ZLWK WKHVH ZHDSRQ V\VWHPV IRU WKH
PRVW SDUW LQYROYH SUHSDULQJ PXQLWLRQV PDLQWDLQLQJ WKH
ZHDSRQ V\VWHP DQG RYHUVHHLQJ WKH FRPSXWHUEDVHG
RSHUDWLRQV RI WKH ZHDSRQ :LWK D VWLQJHU IRU LQVWDQFH
WKHUHLVQRUHDOVNLOOLQILULQJWKHZHDSRQWKHVROGLHUXVLQJ
WKHZHDSRQVLPSO\SRLQWVWKHODXQFKV\VWHPLQWKHJHQHUDO
YLFLQLW\ RI WKH WDUJHW DFWLYDWHV WKH WDUJHWLQJ V\VWHP DQG
ZDLWV IRU WKH ZHDSRQ WR VLJQDO WKDW LW KDV DFTXLUHG LWV
WDUJHWDQGLVUHDG\WRILUH2QHWULJJHUSXOOODWHUWKHPLVVLOH
ODXQFKHV DQG WKH VROGLHU HVVHQWLDOO\ KDV QRWKLQJ WR GR
RWKHUWKDQZDWFKLQJWKHPLVVLOHVWUHDNWRZDUGWKHLQWHQGHG
'TZO'OXIXGLZ=KGVUTX_ 
DLUFUDIW VR VHYHUHO\ WKDW LW VLPSO\ EUHDNV XS LQWR D EDOO RI
ILUHLQPLGDLUNLOOLQJWKHIOLJKWFUHZ
)8'*( 6SHFLDO 5XOHV )8'*( GRHVQ¶W LQYROYH
SHUFHQWDJHV ,W GRHVQ¶W HYHQ LQYROYH WHQVLGHG GLFH 7KLV
UHTXLUHV FRQYHUVLRQ RI SHUFHQWLOHV WR WKH )8'*( GLFH
V\VWHP (DV\ HQRXJK EXLOG D FKDUW )RU )8'*( ZH ZLOO
UHTXLUHWZRGLFHUROOVRQHWRVHHLIWKHPLVVLOHKLWVDQGWKH
VHFRQGWRVHHLILWNLOOVWKHDLUFUDIW:KHQFDOFXODWLQJ\RXU
PRGLILHUWR\RXUUROOUDQJHKDVQREHDULQJ,QWKHZHDSRQ
VWDWLVWLFVWKHKLWYDOXHLVSODFHGLQWKHDFFXUDF\FROXPQ
DQGWKHNLOOYDOXHLVSODFHGLQWKH'DPDJHFROXPQ
KLW )8'*(UROO NLOO
WDUJHW 7KH VNLOO IRU WKH ZHDSRQ FRPHV LQ WKH IRUP RI  7HUULEOH 
NQRZOHGJH RQ DVVHPEOLQJ EUHDNLQJ GRZQ DQG SURSHUO\  3RRU 
WUDQVSRUWLQJ WKH ODXQFKHU PLQRU WURXEOHVKRRWLQJ ZKHQ
 0HGLRFUH 
WKHUH DUH SUREOHPV DQG WKH SURSHU DVVHPEO\ DFWLYDWLRQ
DQGORDGLQJRIDPPXQLWLRQ+HOOWKHPDQILULQJWKHVWLQJHU  )DLU 
LVQ¶W HYHQ FDOOHG D VROGLHU KH¶V DQ RSHUDWRU7R WKDW HQG  *RRG 
ZKHQ LW FRPHV WR DWWDFNLQJ DLUFUDIW WKH DQWLDLUFUDIW  *UHDW 
ZHDSRQ V\VWHPV DUH JLYHQ ERWK D SHUFHQWDJH FKDQFH WR  6XSHUE 
KLWDQGD SHUFHQWDJHFKDQFHWRNLOO
7KHVH UXOHV DSSO\ RQO\ WR JXLGHG DQWLDLUFUDIW $FWLRQ 6\VWHP 6SHFLDO 5XOHV /LNH )8'*(
V\VWHPV 7KLV LQFOXGHV YDULRXV PLVVLOHV DQG UDGDUJXLGHG $FWLRQ 'RHVQ¶W PDNH XVH RI '¶V RU SHUFHQWLOHV 7KH
JXQV 7KH UXOHV GR QRW DSSO\ ZKHQ ILULQJ DQ ROGVFKRRO FRUHRIWKHUXOHVDUHG6RZHGRWKHVDPHWKLQJEDVHG
DQWLDLUFUDIW PDFKLQH JXQV RU VLPLODU WHFKQRORJLHV DQG RQWKHSRLQWUDQJHRI:HKDYHHYHQIDFWRUHGLQ
WHFKQLTXHVWKDWH[LVWHGSULRUWRWKHDGYHQWRIUDGDUGXULQJ WKH EHOO FXUYH 7KH SHUFHQWLOH FDVXDOW\ DQG NLOO UDWHV IRU
:RUOG :DU ,, 7KRVH ROG V\VWHPV DUH HIIHFWLYH VNLOO WKHVHZHDSRQV\VWHPVDUHFRQYHUWHGWRDGLHUROORUKLJKHU
EDVHGW\SLFDODWWDFNVQRGLIIHUHQWWKDQSRLQWLQJDJXQDWD IRUVXFFHVV:LWKWKH:HDSRQVWDWLVWLFVWKH+LWYDOXHLV
PDQDQGVKRRWLQJ SODFHGLQ$FFFROXPQDQGWKH.LOOYDOXHLVSODFHGLQWKH
&\EHU7KULOOHU6SHFLDO5XOHV :KHQ\RXILUHUROO 'PJFROXPQ
G RI G DQG FRPSDUH ([FHHG WKLV QXPEHU DQG WKH
ZHDSRQ PLVVHV  ,I \RX UROO WKLV QXPEHU RU XQGHU EXW +LW .LOO $FWLRQGUROO
H[FHHG WKH VHFRQG SHUFHQWDJH YDOXH WKH PLVVLOH VWULNHV  
DQG GDPDJHV WKH DLUFUDIW EXW LW PD\ FRQWLQXH ILJKWLQJ RU
PRUHOLNHO\H[LWVWKHFRPEDWDUHDXQGHULWVRZQSRZHU,I
 
WKHUROODOVRPHHWVRULVEHORZWKHVHFRQGSHUFHQWDJHWKH  
DLUFUDIWLVVHULRXVO\GDPDJHGDQGPXVWH[LWWKHEDWWOHILHOG  
WKRXJKLWLVPRUHOLNHO\WRVRRQIDOORXWRIWKHVN\7KHSLORW  
FDQ HMHFW VDIHO\ LI QHHGHG KRZHYHU ,I WKH UROO LV  RU  
EHORZWKHPLVVLOHPDNHVDFULWLFDOVWULNHDQGGDPDJHVWKH  
DLUFUDIW VR VHYHUHO\ WKDW LW VLPSO\ EUHDNV XS LQWR D EDOO RI
 
ILUHLQPLGDLUNLOOLQJWKHIOLJKWFUHZ
' 6\VWHP 6SHFLDO 5XOHV :KHQ \RX ILUH UROO  
G RI G DQG FRPSDUH ([FHHG WKLV QXPEHU DQG WKH  
ZHDSRQ PLVVHV  ,I \RX UROO WKLV QXPEHU RU XQGHU EXW  
H[FHHG WKH VHFRQG SHUFHQWDJH YDOXH WKH PLVVLOH VWULNHV  
DQG GDPDJHV WKH DLUFUDIW EXW LW PD\ FRQWLQXH ILJKWLQJ RU  
PRUHOLNHO\H[LWVWKHFRPEDWDUHDXQGHULWVRZQSRZHU,I  
WKHUROODOVRPHHWVRULVEHORZWKHVHFRQGSHUFHQWDJHWKH
DLUFUDIWLVVHULRXVO\GDPDJHGDQGPXVWH[LWWKHEDWWOHILHOG  
WKRXJKLWLVPRUHOLNHO\WRVRRQIDOORXWRI WKHVN\7KHSLORW  
FDQ HMHFW VDIHO\ LI QHHGHG KRZHYHU ,I WKH UROO LV  RU
EHORZWKHPLVVLOHPDNHVDFULWLFDOVWULNHDQGGDPDJHVWKH
 'TZO'XSUX=KGVUTX_
J-J.2A-
$V ORQJ DV WKHUH KDV EHHQ DUPRU VRPHRQH KDV
WULHG WR FUHDWH D ZHDSRQ WKDW ZLOO SHQHWUDWH LW HDVLO\
(YHQWXDOO\ WKH JXQ DSSHDUHG UHQGHULQJ WKH DUPRU RQ PHQ
DQG KRUVHV REVROHWH ILQDOO\ YDQLVKLQJ ZKHQ WKH 6SDQLVK
FRQTXLVWDGRUV UHWLUHG WKHLU VWHHO EUHDVWSODWHV LQ WKH ¶V
$UPRUZDVJRQHDWOHDVWIRUWKHQH[WWZRKXQGUHG\HDUV,Q
WKHHUDRIWKH$PHULFDQ:LOG:HVWDUPRUEHJDQWRUHDSSHDU
7KLV WLPH DURXQG ZKDW ZDV DUPRUHG ZDV QRW PHQ RU WKHLU
VWHHGVEXWWKHLUWUDQVSRUWDWLRQ2YHUDVSDQRIPRUHWKDQ
\HDUV PDQ\ SHRSOH DQG EXVLQHVVHV H[SHULPHQWHG ZLWK WKH
FRQFHSW RI DUPRUHG ZDJRQV GHVLJQHG WR KRSHIXOO\ SUHYHQW
UREEHU\ $V WLPH SDVVHG WKH QRYHOW\ RI WKH KRUVHOHVV
FDUULDJH HYROYHG LQWR WKH LQGLVSHQVDEOH FRQYHQLHQFH RI WKH
DXWRPRELOH DQG WKXV WKH DUPRUHG FDU HYROYHG DV ERWK D
WKHZHDSRQLVFDSDEOHRI'DPDJHLVFDOFXODWHGDV'SHU
SRLQWVRI3(1
'6\VWHP5XOHV
7KH ' 0RGHUQ 5ROHSOD\LQJ *DPH EHJLQV ZLWK D
JRRG LGHD EXW ZLWK WKH ZRUVW SRVVLEOH LPSOHPHQWDWLRQ 2I
FRXUVH WKH JRRG LGHD ZDVQ¶W DQ\WKLQJ QHZ FRXQWOHVV RWKHU
JDPHV RYHU WKH ODVW  \HDUV KDYH XVHG WKH PHFKDQLVP RI
GDPDJHUHGXFLQJDUPRU7RPHWKHIODZRIWKH'0RGHUQ
5ROHSOD\LQJ *DPH LV WKH ODFN RI FRQVLGHUDWLRQ IRU WKH IDFW
WKDW WKHUH DUH PXOWLSOH GLIIHUHQW WHFKQRORJLHV FDSDEOH RI
SHQHWUDWLQJ DUPRU DQG HYHQ LI WZR ZHDSRQ XVH WKH VDPH
WHFKQRORJLHVWKH\PD\QRWEHFUHDWHGHTXDO:KLOHDQ0
/$: FDSDEOH RI SHQHWUDWLQJ XS WR  PP RI UROOHG
KDQGPDGHJDUDJHPRGLILFDWLRQVRQERWKVLGHVRIWKHODZDQG
DV SURIHVVLRQDOO\ FUDIWHG YHKLFOHV PDQXIDFWXUHG IRU ILQDQFLDO
VHUYLFH FRPSDQLHV UDQJLQJ IURP EDQNV WR WUDQVSRUWDWLRQ
FRPSDQLHV OLNH :HOOV )DUJR %\ :RUOG :DU , HYHQ WKH
PLOLWDULHVRIWKHZRUOGZHUHLQYHVWLQJLQDUPRUHGFDUV,WZDV
WKHQWKDWWKHHUDRIWKHDQWLDUPRUZHDSRQEHJDQ
7KXVWKHVSLUDOEHJDQDQHZDUPRUHGYHKLFOHZRXOG
DSSHDURQWKHEDWWOHILHOGDQGVRRQWKHUHDIWHUDULIOHFDSDEOH
RISLHUFLQJLWVDUPRU6KRUWO\DIWHUWKDWDQRWKHUQHZDUPRUHG
YHKLFOH ZRXOG DSSHDU UHQGHULQJ WKH ODWHVW DQWLDUPRU ULIOH
XVHOHVV 7KHQ FDPH WKH WDQN ZKLFK FKDQJHG HYHU\WKLQJ ,W
VXGGHQO\ EHFDPH LPSRVVLEOH IRU RQH RU WZR PHQ WR FDUU\ D
ZHDSRQ VXIILFLHQW WR VWRS DQG DUPRUHG YHKLFOH 7KH JXQV
FDSDEOHRIGRLQJVRZHUHVLPSO\WRRODUJHDQGDVLGHIURPWKH
XVHRIVDWFKHOFKDUJHVRUOLPSHWPLQHVWKHWDQNEHFDPHWKH
KRPRJHQRXV DUPRU 5+$ LJQRUHV  SRLQWV RI KDUGQHVV
XQGHU ' 0RGHUQ UXOHV D 0LODQ FDSDEOH RI SHQHWUDWLQJ
XSWRPPRIDUPRUZLWKWKHVDPHW\SH+($7WHFKQRORJ\
VKRXOGQ¶WLJQRUHMXVWDPHUHSRLQWVRIKDUGQHVV$IWHUDOOLW
HDVLO\SHQHWUDWHVDOPRVWWKUHHWLPHV DV PXFK DUPRU 6RGR
ZH KDYH LW FDXVH WKUHH WLPHV WKH GDPDJH RU LJQRUH WKUHH
WLPHVWKHKDUGQHVV"
:HZDQWWRNHHSWKLQJVVLPSOH$QGLI,OHDUQHGRQH
WKLQJIURP JDPHVOLNH&\EHUSXQNWKH:(*YHUVLRQRI
6WDU :DUV DQG WKH :2' V\VWHP IURP :KLWH :ROI LW LV WKH
IDFWWKDWGLFHUROOLQJLVQ¶WVLPSOH,WVORZVWKHJDPHVGRZQ6R
WKH ODVW WKLQJ ZH ZDQW WR GR LV WKUHH WLPHV WKH GDPDJH 'R
\RX ZDQW WR UROO G GDPDJH HYHU\ WLPH D 0LODQ KLWV LWV
PDUN",GLGQ¶WWKLQNVR6RZKDWZH¶OOGRLVUHYLVHWKHUXOHVIRU
GHWHUPLQLQJ KRZ PXFK KDUGQHVV WKH ZHDSRQ LJQRUHV ,W¶V
VROHSUH\RIRWKHUWDQNV
7KLV VLWXDWLRQ ZRXOG UHPDLQ IRU URXJKO\  \HDUV
7KLQJVFKDQJHGGXULQJ:RUOG:DU,,ZKHQERWKWKH*HUPDQV
DQGWKH$OOLHVLQWURGXFHGDQWLWDQNURFNHWV7KH*HUPDQVKDG
WKH SDQ]HUIDXVW WKH $PHULFDQV KDG WKH ED]RRND DQG WKH
%ULWLVK KDG WKH 3,$7 6XGGHQO\ WKH DYHUDJH LQIDQWU\PDQ
FRXOG SRVVHVV WKH SRZHU WR GLVDEOH RU GHVWUR\ DQ HQHP\
WDQN 6LQFH WKHQ WKH VWUXJJOH KDV FRQWLQXHG 7KRVH HDUO\
URFNHWVZHUHFDSDEOHRIEODVWLQJDJDSLQJKROHWKURXJK±
 PLOOLPHWHUV RI DUPRU 7RGD\¶V PDQSRUWDEOH DQWLWDQN
URFNHWVPDQ\RIZKLFKDUHVRWHFKQRORJLFDOO\DGYDQFHGDVWR
EH DOO EXW JXDUDQWHHG WR KLW WKHLU WDUJHWVFDQ EODVW D JDSLQJ
KROH WKURXJK QHDUO\ D IXOO PHWHU RI DUPRU %XW DW WKH VDPH
WLPH WKH YHKLFOHV KDYH LPSURYHG XVLQJ DOO PDQQHU RI
WHFKQRORJ\ IURP VORSLQJ WKH DUPRU WR XVLQJ DGYDQFHG
PDWHULDOV DQG FRPSRVLWHV 0DQ\ RI WKHVH WHFKQRORJLHV
HTXDWHRXWWRPPRIWKHVHPDWHULDOVEHLQJWKHHTXLYDOHQW
RI PP PP RU PRUH RI WKH ROG 5ROOHG +RPRJHQRXV
HDV\ )RU HYHU\  PP RI SHQHWUDWLRQ RU SRUWLRQ WKHUHRI
OLVWHG LQ WKH UHDO ZRUOG GDWD HTXDWHV WR LJQRULQJ  SRLQW RI
KDUGQHVV:LWKWKH0/$:SHQHWUDWLQJPPRIDUPRU
LW QRZ LJQRUHV RQO\  SRLQWV RI KDUQHVV PDNLQJ LW D ELW OHVV
HIIHFWLYH 0HDQZKLOH WKH 0LODQ ZLOO LJQRUH D ZKRSSLQJ 
SRLQWVRIKDUGQHVVDFFRUGLQJWRWKLVUXOH
:H¶UH QRW GRQH \HW 1RZ ZH QHHG WR DFFRXQW IRU
GDPDJH $V OLVWHG WKH 0 /$: GRHV G GDPDJH D ELW
KHDY\KDQGHGIRUVXFKDZLPS\ZHDSRQ7KHELJTXHVWLRQ,
KDG ZDV LI G LV WKH PD[LPXP GDPDJH XQGHU WKH '
IUDPHZRUN DV ZDV HVWDEOLVKHG LQ $' ' 
QG
(GLWLRQ
)RUWXQDWHO\ WKH DQVZHU LV QR  +RZHYHU DW WKLV SRLQW ZH
QHHG WR EHJLQ GLIIHUHQWLDWLQJ EHWZHHQ WKH YDULRXV W\SHV RI
DQWLDUPRU WHFKQLTXHV WKHUH DUH 7KLV PHDQV ³%XOOHW 7\SHV´
IRUWKHVHZHDSRQVZKLFKLVDFRQFHSWZHZLOOVWLFNZLWKIRUDOO
WKH JDPH V\VWHPV LQYROYHG +RZHYHU ,¶OO VHW WKDW DVLGH IRU
QRZ DQG JR EDFN WKH ' )RU FLYLOLDQ YHKLFOHV WKH OLVWHG
KDUGQHVV LV ILQH +RZHYHU IRU PLOLWDU\ YHKLFOHV WKH\ DUH
$UPRU 6WHHO 5+$ DUPRU SODWLQJ WKDW ZDV VWDQGDUG IRU
PLOLWDU\YHKLFOHVXQWLOWKH¶VDQG¶V
&\EHUWKULOOHU5XOHV
&\EHU7KULOOHU XVHV WZR VWDWLVWLFV WR UHVROYH DUPRU
SHQHWUDWLRQ )LUVW LV D ZHDSRQ VWDWLVWLF FDOOHG 3(1 RU
3HQHWUDWLRQ 0HDQZKLOH YHKLFOHV DOO KDYH DQ DUPRU UDWLQJ
ZKLFKDSSOLHGLQGLYLGXDOO\WRHDFK VLGHRIWKHYHKLFOH,I3(1
H[FHHGV WKH DUPRU UDWLQJ WKH DUPRU LV SHQHWUDWHG DQG WKH
ZHDSRQ¶V GDPDJH LV DSSOLHG WR WKH YHKLFOH DQG FUHZ DV
DSSURSULDWH ,I 3(1 GRHV QRW H[FHHG WKH YHKLFOH¶V DUPRU
UDWLQJ LW H[SORGHV RXWVLGH WKH YHKLFOH FDXVLQJ QR GDPDJH
EXW UHGXFLQJ WKH YHKLFOH¶V DUPRU UDWLQJ RQ WKDW VLGH E\ '
SRLQWV3(1LVFDOFXODWHGDVSRLQWSHUPPRISHQHWUDWLRQ
HQWLUHO\LQVXIILFLHQW/HWPHVKRZ\RXKRZ
&KDUOHV 5\DQ LQ RQH RI KLV %XOOHW 3RLQWV FROXPQV
GHWDLOHG XVH RI DQWLWDQN URFNHWV DQG PLVVLOHV DJDLQVW DQ
0$$EUDPVQDPHO\DQ 0/$:DQGD%*0'72:
,, 7KH 0 ZDV JLYHQ G GDPDJH DQG LJQRUHG 
KDUGQHVV 7KH 72:,, SURYLGHV G GDPDJH DQG LJQRUHV
KDUGQHVV:LWKWKLVWKH0ZLOOGRSRLQWVRIGDPDJH
WR DQ $EUDPV RQ DQ DYHUDJH UROO DQG WKH 72:,, ZLOO GR 
SRLQWVRIGDPDJHRQDQDYHUDJHUROO+RZHYHUWKH0RQO\
SHQHWUDWHV PP RI DUPRU DQG WKH 72:,, FDSDEOH RI
GHIHDWLQJ DQG LQFDSDFLWDWLQJ DQ\ DUPRUHG YHKLFOH RQ WKH
JURXQG LV UDWHG WR SHQHWUDWH DERXW PP RI DUPRU ZHOO
RYHUWKUHHWLPHVDVPXFK%\WKHVHUHYLVHGUXOHVZHSUHVHQW
KHUH WKH 0 GRHV G GDPDJH DQG LJQRUHV  KDUGQHVV
7KH 72:,, ZLOO GR G GDPDJH DQG LJQRUH  KDUGQHVV

:LWKDQDYHUDJHUROOWKH0ZLOOFDXVHDPHUHSRLQWVRI
GDPDJH WR DQ $EUDPV ZKLOH WKH 72:,, ZLOO FRPH FORVH WR
FULSSOLQJ DQ $EUDPV E\ GRLQJ  SRLQWV RI GDPDJH 7KH
72:,, ZLOO GR  SRLQWV RI GDPDJH WR DQ $EUDPV ZLWK
PD[LPXPGDPDJHVXIILFLHQW WRUHVXOWLQ WKHFDWDVWURSKLF NLOO
RI DQ\ PLOLWDU\ YHKLFOH RQ WKH SODQHW $W 0D[LPXP GDPDJH
DQ0ZLOORQO\FDXVHSRLQWVRIGDPDJH%\H[LVWLQJ'
0RGHUQ5ROHSOD\LQJ*DPHUXOHVDQ$EUDPVZLOOEHNLOOHGE\
DQ DYHUDJH RI  /$: KLWV RU  72:,, KLWV %\ WKHVH
UHYLVLRQV LW QRZ UHTXLUHV DQ DYHUDJH RI  /$: KLWV RU 
72:,, KLWV  1RZ WKLQJV DUH LQ UDWLR ZLWK WKHLU DELOLW\ WR
SHQHWUDWHDUPRU
7KH 'UHYLVLRQ UXOHVDUHDVIROORZV'6\VWHP
6SHFLDO 5XOHV )RU HYHU\ PP RU SRUWLRQ WKHUHRI RI
SHQHWUDWLRQ WKDW D +($7 ZHDSRQ LV UDWHG IRU ,W LJQRUHV 
SRLQW RI KDUGQHVV $GGLWLRQDOO\ IRU HYHU\ PP RI
SHQHWUDWLRQRUSRUWLRQWKHUHRIWKHZHDSRQGRHVGGDPDJH
2QFH\RXKDYHWKHILJXUHGRXWDGGGWRWKHWRWDO)LQDOO\
WKHUHLVDEODVWUDGLXVRIIHHWIRUHYHU\SRLQWVRIKDUGQHVV
WKH ZHDSRQ LJQRUHV :LWK DQ 0 /$: DQG LWV PP RI
SHQHWUDWLRQ WKH ZHDSRQ LV UHYLVHG WR LJQRULQJ  SRLQWV RI
KDUGQHVV G GDPDJH DQG D  IRRW EODVW UDGLXV
0HDQZKLOH D 0LODQ ZKLFK SHQHWUDWHV PP RI DUPRU
LJQRUHVSRLQWVRIKDUGQHVVGRHVGGDPDJHDQGKDVD
EODVW UDGLXV RI  IHHW 7KH FDSDFLW\ WR LJQRUH KDUGQHVV ZLOO
EHODEHOHGDV3(1 PDWFKLQJXSZLWKHYHU\WKLQJHOVH
)8'*(5XOHV
$VLWVWDQGV)8'*(GRHVQRWKDYHDQ\RIILFLDOYHKLFOHUXOHV
LQ SULQW ZLWK DQ\ RI WKH OLFHQVHG SXEOLVKHUV , ZLOO KDYH WR
HYHQWXDOO\ SXEOLVK D VKRUW )8'*( VRXUFHERRN WR GHDO ZLWK
WKLVXQIRUWXQDWHVLWXDWLRQ+RZHYHUOHW¶VVHWXSDIUDPHZRUN
IRU WKLV QRZ $QWLDUPRU ZHDSRQV ZLOO KDYH WKHLU DELOLW\ WR
SHQHWUDWH DUPRU UDWHG RQ D  SRLQW VFDOH WKDW PDWFKHV WKH
)8'*( VFDOH 9HKLFOHV ZLOO KDYH WKHLU DUPRU UDWHG RQ WKH
VDPH VFDOH ,I WKH ZHDSRQ¶V DELOLW\ WR SHQHWUDWH DUPRU LV
'TZO'XSUX =KGVUTX_ 
$FWLRQ5XOHV
7KH$FWLRQ6\VWHPLVD\RXQJJDPHV\VWHPEDUHO\
RXWRILWVLQIDQF\DQGFOHDUO\DWDVWDJHZKHUHLWZLOOEHJRLQJ
WKURXJKJURZLQJSDLQVIRUVRPHWLPHWRFRPH:KLOHWKHUHLV
QR GHWDLO SURYLGHGIRU GHDOLQJ ZLWK YHKLFOHV WKHUH LVHQRXJK
SURYLGHGWREXLOGZKDWZHQHHG8QGHUWKHVHFWLRQ,QDQLPDWH
2EMHFWV WKH UXOHV SURYLGH DQ $9 DQG KLWV IRU YHKLFOHV DQG
PDWHULDOV8QIRUWXQDWHO\WKHUHDUHVRPHGLVFUHSDQFLHV7KH\
OLVW$9IRUWKHIURQWDODUPRURIDJHQHULFWDQN$::HUD
3DQ]HU,9JRLQJE\WKHPDWHULDOVYDOXHVZRXOGKDYHEHWWHU
WKDQ$97RMXVWFLUFXPYHQWWKDWDZHDSRQZRXOGQHHG
WRUROODQDYHUDJHUROORQGRUPD[LPXPGDPDJHRQG
(YHQIRUWKHJHQHULFWDQNZLWKDQ$9RIWKDW¶VDQDYHUDJH
GLH UROO IRU G RU D PD[LPXP GLH UROO IRU G 7RR PDQ\
GLFH DQGWKDW¶V MXVWIRU WKH LQIHULRU WHFKQRORJ\ RI &DQ
\RXLPDJLQHWKHVRUWRIGLFHUROOLQJWKDWZRXOGEHUHTXLUHGIRU
WRGD\¶VZHDSRQV"
:KDW ZH¶OO GR LV D ELW RI PRGLILFDWLRQ RI WKH V\VWHP
DQG WDNH D KXJH VWHS DZD\ IURP DOO WKRVH GLFH )LUVW ZH¶OO
SURYLGH DQ $9 IRU 5+$ &KREDPV DQG 'XUDDOXPLQXP
DUPRUV DOO QRZ FRPPRQ RQ WKH PRGHUQ EDWWOHILHOG 1RZ
JHWWLQJ EDFN WR WKH ZHDSRQ FRQYHUWLQJ WKHP ZLOO EH HDVLO\
DFFRPSOLVKHG 7DNH WKHLU SHQHWUDWLRQ YDOXH DQG PXOWLSO\ E\
1RZFRYHUWWR0HJD6FDOHE\GLYLGLQJWKHYDOXHE\
7KH VFDOLQJ UXOHV DUH DQ RSWLRQ SURYLGHG RQ WKH $FWLRQ
6\VWHP ZHEVLWH DW ZZZDFWLRQV\VWHPFRP 7KLV JLYHV \RX
WKHDPRXQWRIGDPDJHWKH\ ZLOOGR LQRUGHUWRSHQHWUDWHWKH
DSSURSULDWHGHSWKRI5+$VWHHODUPRUSODWLQJ1RZIRUHYHU\
 SRLQWV RI SHQHWUDWLRQ LQ 0HJD VFDOH WKH ZDUKHDG ZLOO GR
G GDPDJH LQ QRUPDO VFDOH 1RZ DQG PDNH WKH UHVXOWV D
ERQXV WR G GDPDJH 7KLV ERQXV RQO\ DSSOLHV ZKHQ
VWULNLQJDQDUPRUHGWDUJHWEHLWDPDQLQDVXLWRISODWHPDLO
RU DQ 0$ $EUDPV WDQN )RU YHKLFOHV RQFH \RX FDOFXODWH
WKH $9 GLYLGH WKH YDOXH E\  WR FRQYHUW WR 0HJD 6FDOH
HTXDOWRRUDERYHWKHYHKLFOH¶VDUPRUSHQHWUDWLRQRFFXUVDQG 'DPDJH ZLOO EH GHWDLOV DV 1RUPDO0HJD 6FDOH ^H[
GDPDJH DSSOLHV ZLWKLQ 7KHUH LV QR UROO LQYROYHG ZLWK G` 7KH 0HJD VFDOH GDPDJH DSSOLHV RQO\ IRU
GHWHUPLQLQJWKLV SHQHWUDWLQJ YHKLFOH RU EXLOGLQJ DUPRU ZKLOH WKH QRUPDO
GDPDJHDSSOLHVWRHYHU\WKLQJHOVH
:HDSRQ¶V )8'*(YDOXH 9HKLFOH¶V
3HQHWUDWLRQ $UPRU $UPRU0DWHULDO $9SHUPP
LQPP 7KLFNQHVV $OXPLQXP$OOR\ 
LQPP 'XUD$OXPLQXP 
 7HUULEOH  $QWLEDOOLVWLF3OH[LJODVV 
 3RRU  /H[DQ³SOH[LJODVV´ 
 0HGLRFUH  6WHHO0LOG 
 )DLU  6WHHO5+$ 
 *RRG  6WHHO7HPSHUHG 
 *UHDW  &KREKDP&RPSRVLWH 
 6XSHUE 
 'TZO'XSUX=KGVUTX_
J-J.2A-2D
+($7
+($7 VWDQGV IRU +LJK ([SORVLYH $QWL7DQN 7KHVH
DQWLDUPRU ZHDSRQVZKLFK FRPSULVHRQHRIWKH WZRSULPDU\
DQWLDUPRU WHFKQRORJLHV UHOLHV RQ FKHPLFDO HQHUJ\ WR
DFFRPSOLVK LWV JRDO (LWKHU RQ RU PLFURVHFRQGV SULRU WR
LPSDFW DQ H[SORVLYH FKDUJH GHWRQDWHV LQ DOLJQPHQW ZLWK D
WKLQ FRQHVKDSHG VWUXFWXUH ZKLFK XV PDGH RI FRSSHU RU
DQRWKHUPHWDORIUHODWLYHO\ORZPHOWLQJSRLQW7KLVFRQHLQWKH
SURFHVV RI EHLQJ PHOWHG DQG SURSHOOHG E\ WKH GHWRQDWLRQ
ERWKIRFXVHVWKHH[SORVLRQDQGEHFRPHVWKHPDWHULDOXVHGWR
JHQHUDWH WKH SODVPD MHW WKDW LV WKH FRUH RI WKLV WHFKQRORJ\
7KLV SODVPD MHW VWULNHV WKH DUPRU ZLWK ERWK D KLJK VSHHG LQ
H[FHVV RI  IHHW SHU VHFRQG PRUH WKDQ  WLPHV WKH
UDGLDWLQJ LQ DOO GLUHFWLRQV DV ZHOO DV D EODVW FDSDEOH RI
SHQHWUDWLQJ D UDWKHU ORZ OHYHO RI DUPRU UDUHO\ PRUH WKDQ
PP 7KLV WHFKQRORJ\ LV PDLQO\ GHGLFDWHG WR JUHQDGH
WHFKQRORJLHVSURYLGLQJHYHU\LQIDQWU\PDQWKHFDSDFLW\WRNLOO
ILYH RU WHQ HQHP\ VROGLHUV ZLWK RQH JUHQDGH RUGLVDEOLQJ D
WKLQ VNLQQHG RU OLJKWO\ DUPRUHG YHKLFOH ZLWK WKH VDPH
JUHQDGH
.(6
.(6 LV WKH DEEUHYLDWLRQIRU .LQHWLF (QHUJ\ 6\VWHP
<RX NQRZ LW EHWWHU DV $UPRU3LHUFLQJ WHFKQRORJ\ 7KHVH
V\VWHPV UHVWULFWHG PDLQO\ WR JXQV UHO\ RQ EUXWH IRUFH WR
GULYH D GHQVH WKLQ SHQHWUDWLRQ GHYLFH WKURXJK WKH DUPRU
VSHHGRIVRXQG DQGDKLJKWHPSHUDWXUHRIWHQLQH[FHVVRI 7KLV WHFKQRORJ\ LV RQO\ QRZ EHJLQQLQJ WR EH DSSOLHG WR
 GHJUHHV &HQWLJUDGH 7KLV QRW RQO\ FXWV DQG EXUQV D PLVVLOH WHFKQRORJLHV ZLWK RQO\ RQH DFWLYH .(6EDVHG
KROH WKURXJK WKH DUPRU EXW LW DOVR SURSHOV IUDJPHQWV DQG ZHDSRQ V\VWHP VHUYLQJ ZLWK DQ\ PLOLWDU\ LQ WKH ZRUOG 7KH
VXSHUKHDWHG OLTXHILHG GURSOHWV RI WKH DUPRU FDOOHG VSDOO 0*0 /26$7.(0DFWLYHZLWKWKH86$UP\ZLWK
DURXQGWKHLQVLGHRIWKHYHKLFOH7KLVLVWKHSULPDU\FDXVHRI
GDPDJHLQVLGHWKHYHKLFOH)UDJPHQWVVKUHGDQ\WKLQJLQVLGH
WKDWFDQEHVKUHGGHGDQGWKHGURSOHWVEXUQRUPHOWDQ\WKLQJ
WKDW FDQ EH PHOWHG OHDGLQJ WR ILUHV DQG HYHQ DPPXQLWLRQ
PLVILUHVRUH[SORVLRQVLQVLGHWKHYHKLFOH7KLVLVWKHSULPDU\
DQWLDUPRU WHFKQLTXH IRU YLUWXDOO\ DOO DQWLDUPRU URFNHWV DQG
PLVVLOHV
7KLV WHFKQRORJ\ LV GHIHDWHG WR DQ H[WHQW E\ DQWL
VSDOOVKLHOGV2ULJLQDOO\WKHVHZHUHVPDOOPXOWLOD\HUWDUSVRI
.HYODUIDEULFWKDWZDVVWUHWFKHGDQGPRXQWHGDORQJWKHZDOOV
RI WKH FUHZ FRPSDUWPHQW GHVLJQHG WR FDWFK WKH VSDOO DQG
IUDJPHQWV EHIRUH WKH\ FRXOG FDXVH VLJQLILFDQW GDPDJH
7KHVH ZHUH HIIHFWLYH WR DQ H[WHQW EXW WKH EODVW FRXOG
SHQHWUDWH WKH .HYODU DV HDVLO\ DV LW FRXOG WKH DUPRU
SURGXFLQJ DQ RSHQLQJ WKURXJK ZKLFK WKH GDPDJHFDXVLQJ
HOHPHQWVRIWKHVWULNHFDQVWLOOHQWHU
2QFH WKLV .HYODU VKLHOGLQJ ZDV SURYHQ D IDLOXUH
PRVW YHKLFOH GLG DZD\ ZLWK WKHP LQVWHDG WXUQLQJ WR
DOWHUQDWLYHDUPRUWHFKQRORJLHVOLNHH[SORVLYHUHDFWLYHDUPRU
$ IHZ YHKLFOHV WXUQHG WR EROWLQ LQWHULRU FRPSRVLWH SODWHV
FRPSRVHGRIFHUDPLFVFDUERQILEHUVLOLFDHSR[\ODPLQDWHV
DQGZUDSSHGLQVHYHUDOODPLQDWHGOD\HUVRI.HYODUVKHHWLQJ
+00:9PRGLILHGLQWRWKH0ODXQFKV\VWHP
7KH SHQHWUDWRU XVXDOO\ RI WXQJVWHQ RU GHSOHWHG
XUDQLXPLPSDFWWKHDUPRUDWVXFKKLJKYHORFLW\WKDWWKH\ZLOO
FUHDWHDJDSLQJGHQWWKHDUPRUDOOWKHZD\WKURXJKWKHDUPRU
DVWKHSHQHWUDWRUPHOWVDQGGHIRUPVIRUFLQJLWVZD\WKURXJK
WKHDUPRUDQGLQWRWKHYHKLFOH¶VLQWHULRU7KHHIIHFWVIURPWKDW
SRLQW YDU\ GHSHQGLQJ XSRQ WKH W\SH RI .(6 ZHDSRQ XVHG
7KH ZHDNHVW GRQ¶W  SHQHWUDWH DUPRU EXW IUDFWXUH LW LQVWHDG
UHVXOWLQJ LQ WKH LQQHU VXUIDFH RIWKHYHKLFOH IUDJPHQWLQJ DQG
VSUD\LQJ VKUDSQHO WKURXJKRXW WKH YHKLFOH $V WKH\ EHFRPH
PRUH SRZHUIXO WKH\ FDXVH WKH VDPH LQWHULRU IUDJPHQWDWLRQ
EXW DOVR SHQHWUDWH WKH DUPRU DQG HQWHU WKH LQWHULRU DV ZHOO
ZHUHLWZLOOULFRFKHWDURXQGWKHLQWHULRUSHUKDSVKXQGUHGVRI
WLPHV GHVWUR\LQJ ERWK FUHZ DQG HTXLSPHQW 7KRVH PRUH
SRZHUIXO VWLOO DFWXDOO\ FDQ SHQHWUDWH WKH DUPRU RQ RQH VLGH
DQG EODVW SDUWO\ LI QRW FRPSOHWH RXW WKH RWKHU VLGH RI WKH
DUPRU7KHVHRQHVFUHDWHDSUHVVXUHZDYHLQVLGHWKHYHKLFOH
WKDW FDQ EORZ RSHQ KDWFKHV UXSWXUH FRPSDUWPHQWV DQG LI
SRZHUIXO HQRXJK HYHQ SRS D WXUUHW RII LWV PRXQWLQJV RQ D
WDQN 7KH PRVW SRZHUIXO .(6 ZHDSRQV DUH K\SHUYHORFLW\
ZHDSRQV 7KLV LV ZKHUH WKH PLVVLOH WHFKQRORJ\ FRPHV LQWR
SOD\7KHSHQHWUDWRUZLOOVWULNHWKHWDUJHWYHKLFOHDWYHORFLWLHV
7KH LGHD LV WKDW WKH LQWHUQDO FRPSRQHQWV RI WKLV SODWLQJ FDQ
ZLWKVWDQG WKH KHDW RI D +($7 URXQG EXW FDQQRW ZLWKVWDQG
NLQHWLF LPSDFW 2QH VLGH RI WKH .HYODU ZRXOG EXUQ DZD\
NLQHWLF SHQHWUDWRU EXW QRW IUDJPHQWDWLRQ ZLOO SHQHWUDWH WKH
SODWLQJ DQG NLQHWLF SHQHWUDWRUV ZLOO VKDWWHU WKH LQWHUQDO
FRPSRQHQWV RI WKH SODWLQJ ZKLFK ZRXOG EH KHOG LQ WKH EDJ
OLNHUHPDLQLQJVWUXFWXUHRIWKH.HYODUZLWKRXWUHOHDVLQJPXFK
LQWKHZD\RIIUDJPHQWVRIVSDOO
([SORVLYHUHDFWLYHDUPRULVDV\VWHPRIWKLFNSODWHV
RI DUPRU EROWHG WR WKH RXWHU KXOO DQG VXSHUVWUXFWXUH RI D
PLOLWDU\ DUPRUHG YHKLFOH 7KHVH SODWHV DUH QRW VROLG EXW
KROORZ DQG ILOOHG ZLWK H[SORVLYH PDWHULDO :KHQ D +($7
URXQG FXWV LQWR WKH SODWH WKH SODWH H[SORGHV GLVUXSWLQJ WKH
SODVPD MHW WKDWZRXOG RWKHUZLVH FXW WKURXJK WKH PDLQ DUPRU
RI WKH YHKLFOH 7KH SODWHV DUH UHODWLYHO\ VPDOO DW  WR 
LQFKHV VTXDUH VR WKH RGGV RI WZR DQWLDUPRU ZHDSRQV
VWULNLQJWKHVDPHRQHLQRQHEDWWOHWHQGVWREHUDWKHUVOLP
+('3
7KHVHDUH+LJK([SORVLYH'XDO3XUSRVHPXQLWLRQV
7\SLFDOO\ GHVLJQHG ZLWK D SDUWLDOO\ IRFXVHG H[SORVLYH FRUH
WKH\ DUH ZUDSSHG LQ DQ HDVLO\ IUDJPHQWLQJ VKHOO 8SRQ
GHWRQDWLRQ WKHVH PXQLWLRQV JHQHUDWH D VSKHUH RI VKUDSQHO
WKDW FDQ H[FHHG RQH PLOH SHU VHFRQG # 0DFK  7KH
LPSDFW LV VR JUHDW WKDW DUPRU LQ H[FHVV RI PP WKLFN ZLOO
FUXPSOH OLNH D VKHHW RISDSHU DQG ULYHWV EROW DQGZHOGV RQ
WKH YHKLFOH ZLOO IUDFWXUH DQG SURGXFH D YDVW TXDQWLW\ RI
VKUDSQHO LQVLGH WKH YHKLFOH  7UDFNV VLGH VNLUWV DQG URDG
ZKHHOV HQG XS IO\LQJ RII LQ HYHU\ GLUHFWLRQ 7KH SHQHWUDWRU
ILQDOO\ FXWV WKURXJK WKH RSSRVLWH VLGH RI WKH YHKLFOH QHDUO\
FXWWLQJ WKH HQWLUH KXOO LQ KDOI $ WXUUHW VWULNH ZLOO VKHDU WKH
WXUUHW RII D WDQN DV HDVLO\ DV QHZVSDSHU WHDUV WKH WXUUHW
FUXPSOLQJ LQ RQ LWVHOI WHDULQJ DQG IO\LQJ WHQV RI PHWHUV
WKURXJKWKHDLUOHDYLQJDGHEULVWUDLOEHWZHHQLWDQGWKHWDQN
KXOO (YHQ D WDQN¶V PDLQ JXQ FDQ WHDU IUHH IURP WKH WXUUHQW
XQGHUWKHVHIRUFHVWXPEOLQJRIILQDQRWKHUGLUHFWLRQ
$V PHQWLRQHG WKLV LQFOXGHV VXFK ZHDSRQV DV WKH
/26$7.(0 +\SHUYHORFLW\ 0LVVLOH DV ZHOO DV $3'6 DQG
$3)6'6 DQWLWDQN URXQGV DQG DUPRUSLHUFLQJ PXQLWLRQV IRU
VPDOOHUZHDSRQVOLNHFKDLQJXQVDQGDXWRFDQQRQV
)LUH
1RWKLVLV QRWDQHZW\SHRIDQWLDUPRUWHFKQRORJ\
EXWLQVWHDGRQHRIWKHROGHVWZHDSRQVNQRZQWRPDQ'XULQJ
WKH 6HFRQG $PHULFDQ,UDT :DU D QXPEHU RI 0$ $EUDPV
ZHUH ORVWWRILUH2QHWDQNVWUXFND WUHH UXSWXULQJD)OH[FHOO

([WHQGHG 5DQJH ([WHUQDO 0RXQW )XHO %ODGGHU PRXQWHG RQ
WKH WXUUHW¶V EXVWOH UDFNV )XHO OHDNHG WKURXJK WKH HQJLQH
FRPSDUWPHQW YHQWLQJ DQG EXUQHG XS WKH WXUELQH $QRWKHU
WDQN VXIIHUHG WKH VDPH IDWH LQVWHDG FDXVHG E\ D 0RORWRY
'TZO'XSUX =KGVUTX_ 
FRFNWDLOUDWKHUWKDQDUXSWXUHGH[WHUQDOIXHOEODGGHU)LUHFDQ
EH DV GHDGO\ WR DQ DUPRUHG YHKLFOH DV WKH PRVW SRZHUIXO
$7*0
 (OURUMOIGR)NKSOIGR=KGVUTY

!F5E=
=66=C<
C<9A=75@
/ 95 D C B G
,UDTIRUGHFDGHVSRVVHVVHGDQH[WHQVLYHSURJUDPIRUWKH 9LUJLQLDWRWHVWIXQJDOELRORJLFDOZHDSRQVWKDWDWWDFNHGVSHFLILFUDFHV
UHVHDUFKGHYHORSPHQWSURGXFWLRQDQGVWRFNSLOLQJRIWKHSRRUPDQ
V LQWKLVLQVWDQFHWKHIXQJDOZHDSRQWDUJHWHGDQGLQIHFW$PHULFDQVRI
QXFOHDUZHDSRQFKHPLFDODQGELRORJLF DODJHQWV6LQFHWKHGHIHDWRI
,UDTLQWKHUHKDVEHHQH[WHQVLYHHIIRUWE\WKH8QLWHG1DWLRQWR
ULG WKH QDWLRQ RI ,UDT RI WKHVH ZHDSRQV RI PDVV GHVWUXFWLRQ 7KRVH
HIIRUWV UHDFKHG D ILQDO FUHVFHQGR ZLWK 2SHUDWLRQ ,UDTL )UHHGRP
ZKLFK GHSRVHG WKH  \HDU UHJLPH RI WKH W\UDQW 6DGGDP +XVVHLQ
DQG SURYLGHG 86 IRUFHV RSHQ DFFHVV WR WKH QDWLRQ WR KXQW IRU
FKHPLFDOZHDSRQVDQGRWKHUZHDSRQVEDQQHGXQGHU81VDQFWLRQV
7KH,UDTLELRFKHPLFDOZHDSRQVSURJUDPVFDPHDERXWLQDIWHU
WKH ,VUDHOLERPELQJRI DQX FOHDUSRZHUSODQW ,UDT KDG REWDLQHG ZLWK
)UHQFK KHOS 7KDW IDFLOLW\ ZDV VXVSHFWHG WR EH WKH FRUH RI WKH
JURZLQJ,UDTLQXFOHDUZHDSRQVSURJUDPDEUHHGHUUHDFWRUWKDWFRXOG
SURGXFHZHDSRQVJUDGHSOXWRQLXP
7KHHUDRIPRGHUQFKHPLFDOZDUIDUHEHJDQGXULQJWKH :DU
WR(QG$OO:DUV2Q$SULOQHDUWKH%HOJLDQYLOODJHRI<SUHV
VZHUH EXV\IRUELRFKHPLFDOZDUIDUH7KHUHZHUH
*HUPDQ WURRSV UHOHDVHG  WRQV RI FKORULQH JDV IURP 
SUHVVXUL]HGF\OLQGHUVLQWZRVHSDUDWHDFWLRQRYHUWKHFRXUVHRIWKUHH
GD\V2YHUWKHFRXUVHRIWKRVHWKUHHGD\V$ OOLHGWURRSVZHUH
NLOOHGDQGDQRWKHUZHUHLQMXUHGE\WKHFKHPLFDODWWDFNV7KH
KHDYLHUWKDQDLUQDWXUHRIFKORULQH JDV ZDV HVSHFLDOO\ GHDGO\ LQWKLV
SHULRGRI WUHQFK ZDUIDUHWKHYDSRUZRXOGUROO DORQJWKHJURXQGDQG
FROOHFW DQG SRRO LQ WKH ORZHVW G HSUHVVLRQV HVSHFLDOO\ WKH WUHQFKHV
/DWHU WKDW \HDU SKRVJHQH WHQ WLPHV GHDGOLHU WKDQ FKORULQH DQG LQ
PXVWDUGJDVZDVDGGHGWRWKHDUVHQDOV2YHUDOORYHU
WRQV RIWKHVHFKHPLFDOZHDSRQV ZHUHXVHGGXULQJ:RUOG:DU2QH
NLOOLQJ DERXW  SHRSOH DQG FUHDWLQJ D WRWDO RI  PLOOLRQ
FDVXDOWLHV +RZHYHU ZKLOH WKLV PRGHUQ HUD RI FKHPLFDO ZDUIDUH
EHJDQLQWKHXVHRIFKHPLFDOZHDSRQVLVWUXO\DQFLHQWGXULQJ
WKH ILIWKFHQWXU\%&WKH6SDUWDQV XVHG VXOIXUIXPHV WRLQFDSDFLWDWH
VRPH HQHP\ WU RRSV EHIRUH HQJDJLQJ LQ EDWWOH +LVWRU\ LV DOVR ILOOHG
ZLWKLQFLGHQWVRIELRORJLFDOZDUIDUHSULPDULO\WKHXVHRIGLVHDVHGDQG
RU URWWLQJ FRUSVHV WR VSUHDG SODJXH LQVLGH EHVHLJHG SRSXODWLRQ
FHQWHUVRUWRSRLVRQZDWHUVXSSOLHV
$IWHU WKH :DU LQ   QD WLRQV VLJQHG WKH *HQHYD
3URWRFRO D VLPSOH GRFXPHQW PHDQW WR EDQ FKHPLFDO DQG ELRORJLFDO
ZHDSRQV,WZDVDUDWKHUYDJXHGRFXPHQWWKDWSURKLELWHGWKHXVHRI
FKHPLFDO ZHDSRQV EXW QRW WKH PDQXIDFWXULQJ VWRFNSLOLQJ RI RU
WKUHDW RI WKHVH ZHDSRQV 6LQFH WKHQ D WRWDO RI  QDWLRQV KDYH
VLJQHG WKH SURWRFRO -DSDQ ,UDTDQG ,WDO\ ZHUH HDUO\ VLJQDWRULHV RI
WKHSURWRFROWKDWZHQWRQWRHQJDJHLQFKHPLFDORUELRORJLFDOZDUIDUH
DIWHUVLJQLQJ,QWKHSHULRGEHWZHHQZRUOGZDUVWKHXVHRIFKHPLFDO
ZHDSRQV GLG QRW ID OO WR WKH ZD\VLGH ,Q  WKH %ULWLVK
H[SHULPHQWHG E\ XVLQJ FKHPLFDO ZHDSRQV DJDLQVW .XUGLVK UHEHOV
ZLWKWKHEOHVVLQJRI:LQVWRQ&KXUFKLOOVDZWKH,WDOLDQLQYDVLRQ
RI (WKLRSLD ZKHUH WKH ,WDOLDQV PDGH XVH RI PXVWDUG JDV 
WMXVWJRYHUQPHQWVWKDW
EURXJKW WKH -DSDQHV H LQYDVLRQ RI &KLQD DQG WKHLU XVH RI FKHPLFDO
ZHDSRQV
:LWK:RUOG:DU,,WKHUHZDVQREDWWOHILHOGXVHRIFKHPLFDO
ZHDSRQV +RZHYHU WKH *HUPDQV PDGH LQFUHGLEOH DGYDQFHV LQ WKH
UHVHDUFKRIFKHPLFDOZHDSRQV LQFOXGLQJ WKHGHYHORSPHQW RIWDEXQ
VDULQ VRPDQ DQG DW OHDVW D KDOI GR]HQ RWKHU FKHPLFDO ZHDSRQV
0HDQZKLOH WKH -DSDQHVH H[SHULPHQWHG H[WHQVLYHO\ ZLWK ELRORJLFDO
ZHDSRQVHPSOR\LQJRYHUSHRSOHLQWKHSURMHFWVDVSDUWRI8QLW
 ,QGLYLGXDO H[SHULPHQWDWLRQ NLOOHG  $OOLHG 32:V DORQH DQG
WKHMDSDQHVHODXQFKHGPDVVLYHH[SHULPHQWVDVVLPXODWHGDWWDFNVRQ
FKLQHVHFLWLHVXVLQJDQWKUD[FKROHUDVDOPRQHOODEXERQLFSODJXH
DQG RWKHU DJHQWV EXW FRQFOXGHG WKHVH DWWDFNV ZHUH LQHIIHFWLYH
WKRXJKWKH\NLOOHGWHQVRIWKRXVDQGVRILQQRFHQWFLYLOLDQV 2QHVXFK
V VXEZD\ V\VWHP NLOOLQJ WZHOYH DQG VLFNHQLQJ
LQFLGHQW ZHQW DZU\ NLOOLQJ  MDSDQHVH WURRSV LQ WKH FLW\ RI
V1<&VXEZD\H[SHULPHQW
&KDQJWHK7KH%ULWLVKH[SHULPHQWHGZLWKDQWKUD[RQ*UXLQDUG,VODQG
FRQWDPLQDWLQJ WKH LVODQG VR WKRURXJKO\ WKDW WR WKLV GD\ HYHQ DIWHU
V
VRDNLQJWKHHQWLUHLVODQGLQRYHUDPLOOLRQJ DOORQVRIIRUPDOGHK\GHLV
VWLOOFRQVLGHUHGFRQWDPLQDWHGWRDKD]DUGRXVOHYHO
:LWK WKH &ROG :DU ELRFKHPLFDO ZHDSRQV EHFDPH UDWKHU
LQVLGLRXV ,Q  WKH XVH RI D 86 $UP\ EDFWHULDO DJHQW LQ 6DQ
)UDQFLVFR UHVXOWHG LQ D GLVHDVH RXWEUHDN ,Q  7KH $UP\ XVHG
DIULFDQ GHVFHQW ,Q  WKH $UP\ FRQGXFWHG D ELRORJLFDO ZDUIDUH
H[SHULPHQWLQWKH1HZ<RUN&LW\VXEZD\V\V WHP2QO\DIWHUWKH
DFFLGHQWDO NLOOLQJ RI RYHU VL[ WKRXVDQG RI VKHHS LQ 8WDK ZLWK WKH
FKHPLFDOZHDSRQ9;GRHVWKH3UHVLGHQWRIWKH8QLWHG6WDWHVILQDOO\
LPSRVHDEDQRQFKHPLFDOZHDSRQSURGXFWLRQDQGELRORJLFDOZHDSRQ
SRVVHVVLRQ,QWKH&,$PD\ KDYHXVHGDELRORJLFDODJHQWWRNLOO
RYHU  VZLQH LQ &XED SRVVLEO\ SDUW RI D &,$ ELRZDUIDUH
GHSDUWPHQWH[SRVHGE\D:DVKLQJWRQ3RVWVWRU\LQDOVR
VDZDQDFFLGHQWDWD6RYLHWFKHPLFDOZHDSRQVSODQWNLOOHGDWOHDVW
SHRSOH YLD DQWKUD[ LQ IHFWLRQ WKRXJK LW GLG QRWKLQJ WR HYHQ VORZ WKH
6RYLHW ELRFKHPLFDO ZHDSRQV SURJUDPV $QG LQ  ,QGRQHVLD
DQQH[HG(DVW7LPRUSURPSWO\VSUD\LQJKHUELFLGHVDQFURSODQGLQWKH
UHJLRQYLDDLUFUDIWDVDPHDQVRITXHOOLQJWKHDQJU\SRSXODWLRQ
7KH
FODLPVRI &RPPXQLVWXVH RIFKHPLFDOZHDSRQVLQ /DRV&DPERGLD
DQG$IJKDQLVWDQ1RQH RIWKHVHFODLPVSDQQHGRXW+RZHYHURWKHU
FODLPV GLG ,Q  ,UDT VWDUWHG D ZDU ZLWK ,UDQ RYHU ODQG ORFDWHG
ZHVW RI WKH (XSKU DWHV 5LYHU 7KH ZDU HYHQWXDOO\ GHJHQHUDWHG WR D
ZDURIDWWULWLRQ2QHWKH,UDTLVLGHWKHUHZDVRQO\DUHJXODUDUP\WR
ILJKWDZDUXVLQJWUDGLWLRQDOPLOLWDU\WDFWLFV2QHWKH,UDQLDQVLGHWKH
UHJXODUDUP\ZDVTXLFNO\GHFLPDWHGWRWKHSRLQWWKDW,UDQHYHQW XDOO\
WXUQHGWRWKHXVHRIKXPDQZDYHDWWDFNVXWLOL]LQJDYROXQWHHUIRUFH
RI UHOLJLRXVO\ PRWLYDWHG WURRSV DQG FRQVFULSWV VHHNLQJ PDUW\UGRP
WKURXJK WKHLU RZQ GHDWKV LQ EDWWOH :LWK D VPDOOHU DUP\ DQG
SRSXODWLRQ ,UDT ZDV OHIW ZLWK WKH RQO\ FKRLFHV RI FDS LWXODWLRQ RU
UHWDOLDWLRQ ZLWK ZHDSRQV FDSDEOH RI LQIOLFWLRQ PDVVLYH FDVXDOWLHV
FRPSDUHGWR FRQYHQWLRQDOZHDSRQVEHJLQQLQJ LQ'HVSLWHWKH
XVHRIKXQGUHGVRIWRQVRIGHDGO\VXEVWDQFHV,UDTRQO\PDQDJHGWR
DUUDQJH D FHDVH ILUH ZLWK ,UDQ LQ $XJXVW   UDWKHU WKDQ
DFFRPSOLVKLQJDQRYHUDOOYLFWRU\LQWKHZDUWKH\VWDUWHG$OVRLQ
,UDT JDVVHG GR]HQV RI .XUGLVK YLOODJHV LQ QRUWKHUQ ,UDT WR TXHOO
XSULVLQJV 2IILFLDOO\ WKH GHDWK WROO LV OLVWHG DW  IRU WKH DUHD RI
+DODEMDKZLWKGR]HQVRIYLOODJ HVDWWDFNHGWKHDFWXDOGHDWKWROOOLNHO\
QXPEHUHGDWOHDVWWHQWLPHVWKDWEURXJKWZLWKLWWKH*XOI:DU
6RPH  DOOHJHG ELRFKHPLFDO ZHDSRQV VLWHV ZHUH ERPEHG GXULQJ
WKH DLU ZDU 2QH VLWH EXUQHG LQ JUHHQ IODPHV LQGLFDWLQJ D FKHPLFDO
ILUH$WDQRWKHU ,UDTLVROGLHUVGLHGZLWKLQDZHHNDIWHUWKHIDFLOLW\
WKH\ JXDUGHG ZDV ERPEHG &]HFK FKHPLFDO ZDUIDUH XQLWV GHWHFWHG
VDULQ LQ WKH DWPRVSKHUH RQ VHYHUDO RFFDVLRQV GXULQJ WKH DLU ZDU
(J\SWLDQ GRFWRUV UHSRUWHG WKH RXWEUHDN RI VWUDQJH GLVHDVHV LQVLGH
,UDT $QG DIWHU WKH ZDU $OOLHG *XOI :DU YHWHUDQV EHJLQ GHYHORSLQJ
PHGLFDOSUREOHPVLQYROYLQJDYDULHW\RIV\PSWRPVFROOHFWLYHO\FDOOHG
*XOI:DU6\QGURPH
2IFRXUVHGXULQJWKHODVW \HDUVLWZDVQ
PDGHXVHRIFKHPLFDOZHDSRQV,Q DQH[SORVLRQDWDIHUWLOL]HU
SODQW RZQHG E\ 8QLRQ &DUELGH LQ %KRSDO ,QGLD NLOOHG  SHRSOH
DQG LQMXUHG WHQV RI WKRXVDQGV PRUH H[SRVLQJ WKH ULVN SRVHG E\
FKHPLFDO SODQWV ORFDWHG LQ ZDU ]RQHV ,Q  -LPP\ -RQHV NLOOHG
KLPVHOI DQG VRPH  RI KL V IROORZHUV ZLWK D PDVV VXLFLGH E\
F\DQLGH VSLNHG NRRODLG SXQFK  ,Q  WKH 5DMQHHVKHH UHOLJLRXV
FXOW FRQWDPLQDWHG UHVWDXUDQW VDODG EDUV DFURVV 2UHJRQ ZLWK
6DOPRQHOOD FDXVLQJ  FDVHV RI HQWHULWLV  RI ZKLFK UHTXLUHG
KRVSLWDOL]DWLRQ,QWKHF\ DQLGHFRPSRXQGZLWKWKHERPELQWKH
JDUDJHRIWKH:RUOG7UDGH&HQWHUZDVIRUWXQDWHO\LQFLQHUDWHGLQWKH
H[SORVLRQRWKHUZLVHWHQVRIWKRXVDQGVFRXOGKDYHEHHQVLFNHQHGRU
NLOOHG $QG LQ  WKH UHOLJLRXV FXOW $XP 6KLQULN\R UHOHDVHG 6DULQ
JDV LQ WKH 7RN\R
7KLVLQFLGHQWFRXQWHUHGWKH$UP\
DQG WKH FXOW ZDV IRXQG WR EH ZRUNLQJ ZLWK DQ DUUD\ RI ELRFKHPLFDO
ZHDSRQV ,Q  DV PDQ\ DV  PHPEHUV RI  WKH FXOW +HDYHQ
*DWH FRPPLWWHG VXLFLGH ZLWK WKH SDVVLQJ RI WKH FRPHW +DOH %RSS
$QG LQ  XQNQRZQ SDUWLHV XVHG WKH 86 SRVWDO V\VWHP WR
GLVWULEXWH DQWKUD[ NLOOLQJ RU VLFNHQLQJ OHVV WKDQ  SHRSOH LQ WKH
SURFHVV

=C7<9A=75@;9BHG
$QWKUD[ %DFLOOXVDQWKUDFLV  %DFWHULDO$JHQW
6\PSWRPV ,QKDOHG DQWKUD[  OXQJ SUREOHPV WHUPLQDO VKRFN 6NLQ
DQWKUD[ OHVLRQVEORRGSRLVRQLQJ
2XWFRPH 'HDWKLIXQWUHDWHG1RWFRQWDJLRXV
6WDWXV ,UDTFODLPVSURGXFWLRQRIJDOORQV81XQDEOHWRYHULI\
VOXQJVEHJLQILOOLQJZLWK
SUHVHQWVWDWXV
$QWKUD[ KDV EHFRPH I DPRXV LQ UHFHQW \HDUV GXH WR LWV
FRQQHFWLRQ WR ELRORJLFDO ZDUIDUH DQG LWV SRWHQWLDO XVH E\ WHUURULVWV
HVSHFLDOO\DIWHUWKHDQWKUD[PDLOLQJLQ2FWREHU$QWKUD[KDVD
ORQJ KLVWRU\ DV D ZHDSRQ RI PDVV GHVWUXFWLRQ EHLQJ GHHPHG D
VXLWDEOHELRORJLFDODJH QW GXHWR WKHYDULHW\RI ZD\V WKURXJK ZKLFKLW
FDQEHGLVWULEXWHGDQGWKHH[WUHPHKDUGLQHVVRILWVVSRUHV $QWKUD[
QDWXUDOO\ QRUPDOO\ DIIHFWV KHUELYRURXV DQLPDOV VXFK DV VKHHS DQG
FDWWOH VR FDVHV GXH RFFXU QDWXUDOO\ DPRQJ WKRVH LQYROYHG LQ WKLV
LQGXVWU\,QFDWWOHWKHV\PSWRPVDUHVWDJJHULQJDQGFRQYXOVLRQVDQG
WKHQGHDWKZLWKLQDIHZGD\V+XPDQLQIHFWLRQYLDELRZHDSRQRFFXUV
ZKHQ VSRUHVPDNHFRQWDFWZLWKH[SRVHGVNLQRUHQWHU WKHOXQJVDV
DLUERUQH SDUWLFOHV KRZHYHU DFFLGHQWDO LQIHFWLRQ FDQ DOVR RFFXU E\
HDWLQJ LQIHFWHG PHDW 6NLQ $QWKUD[ DQG LQWHVWLQDO DQWKUD[ IURP
(OURUMOIGR)NKSOIGR=KGVUTY 
:LWK ,QKDODWLRQ DQWKUD[ WKH SURFHVV LV IDU PRUH LQVLGLRXV
DQG ZRUNV IDU IDVWHU 7 KH LOOQHVV ZLOO LQFXEDWH IRU XS WR VL[ GD\V
EHIRUH FROG V\PSWRPV RFFXU $W WKLV SRLQW WKH FKDUDFWHU EHJLQV
ORVLQJ &21 DW D UDWH RI  SRLQW SHU GD\ $IWHU D ZHHN WKH LOOQHVV
EHFRPHVSQHXPRQLFLQQDWXUHDVWKHYLFWLP
VSRUHV DQG F RQJHVWHG IOXLGV $W WKLV SRLQW WKH YLFWLP ZRUVHQV
GUDVWLFDOO\ORVLQJ&21DWDUDWHRISRLQWVSHUGD\$WWKLVSRLQWWKH
LQIHFWLRQLVQRORQJHUWUHDWDEOHDQGWKHFKDUDFWHUZLOOGLHRQFH&21
UHDFKHV  7KH LQIHFWLRQ FDQ EHVWRSSHG GXULQJ WKH FROG VWDJ H E\
WDNLQJ DQWLELRWLFV ,W LV DOVR FRPPRQ WR WDNH DQWLELRWLFV RQ D
SURSK\ODFWLF EDVLV LI VRPH \RX KDYH FRQWDFW ZLWK KDV EHHQ
GLVFRYHUHG WR EH LQIHFWHG HYHQ LI \RX GR QRW KDYH DQ\ V\PSWRPV
$QWLELRWLFVQHHGWREHWDNHQIRUDVORQJDVGD\VEHIRUHWKHVS RUHV
KDYH EHHQ HQWLUHO\ NLOOHG RII ZLWKLQ WKH OXQJV $IIOLFWLRQ RI LQKDODWLRQ
DQWKUD[FDQEHDYRLGHGE\DIRUWLWXGHVDYHYV'&
%RWXOLQXP  &ORVWULGLXP ERWXOLQXP  %DFWHULDO
7R[LQ
HDWLQJ LQIHFWHG PHDW KDYH D PRUWDOLW\ UDWH RI   LI OHIW
XQWUHDWHG LQKDODWLRQ RI DQWKUD[ VSRUHV KDV D PXFK KLJKHUPRUWDOLW\
UDWHLIOHIWXQWUHDWHGZLWKDURXQGRIYLFWLPVG\LQJ
(DFK W\SH RI LQIHFWLRQ KDV GLIIHUHQW V\PSWRPV 6NLQ RU
FXWHRXV $QWKUD[ DSSHDUV DV D ODUJH SXV ILOOHG EOLVWHU DQG SRVVLEOH
LQIODPPDWLRQRIWKHO\PSKJODQGV,QWHVWLQDO$QWKUD[EULQJVRQSDLQIXO
VWRPDFKFUDPSVDFXWHLQIODPPDWLRQRIWKHLQWHVWLQDOWUDFWDQGIL QDOO\
YRPLWLQJ RI EORRG DQG VHYHUH GLDUUKRHD ,QKDODWLRQ $QWKUD[ ZKLFK
KDV WKH KLJKHVW PRUDOLW\ UDWH KDV LQLWLDO V\PSWRPV VLPLODU WR WKDW RI
WKHFRPPRQFROGIROORZHGE\EUHDWKLQJSUREOHPVDQGWKHQVKRFN
6\PSWRPV 3WRVLVJHQHUDOL]HGZHDNQHVVGL]]LQHVVGU\PRXWKDQG
WKURDW EOXUUHG YLVLRQ DQG GLSORSLD G\VDUWKULD G\VSKRQLD DQG
G\VSKDJLD DUHIROORZHG E\V\PPHWULFDOGHVFHQGLQJ IODFFLG SDUDO\VLV
DQGWKHGHYHORSPHQWRIUHVSLUDWRU\IDLOXUH6\PSWRPVPD\EHJLQDV
HDUO\ DV  KRXUV IROORZLQJ LQJHVWLRQ RU LQKDODWLRQ EXW PD\
UHTXLUHDVORQJDVVHYHUDOGD\VLQVRPHFDVHV
2XWFRPH 'HDWKLIXQWUHDWHG1RWFRQWDJLRXV
6WDWXV ,UDTFODLPVSURGXFWLRQRIJDOORQV81XQDEOHWRYHULI\
SUHVHQWVWDWXV
%RWXOLQXPWR[LQVDUHDJURXSRIVHYHQUHODWHGQHXURWR[LQV
,PPXQL]DWLRQ LV HIIHFWLYH DQG WKH 86 EHJDQ LPPXQL]L QJ
PLOLWDU\VWDIILQWKHYDFFLQHLVPDGHXS RID GHDG IRUPRIWKH
EDFWHULDDQGLVJLYHQLQWKUHHLQMHFWLRQVWZRZHHNVDSDUWIROORZHGE\
ERRVWHUVYHU\PRQWKVIRUWKHILUVWPRQWKV6LGHHIIHFWVDUHUDUH
7KH GLVHDVH FDQ EH WUHDWHG ZLWK DQWLELRWLFV LI FDXJKW LQ WKH HDUO\
VWDJHV ZKLFK LV RI FRXUVH LVYHU\ GLIILFXOW IRUWKH LQKDODWLRQ LQIHFWLRQ
GXHWRWKHHDUO\V\PSWRPV
$QWKUD[JDLQHGPXFKRILWVIDPHDIWHU%ULWLVKH[SHULPHQWV
LQ7HVWDQWKUD[ERPEVZHUHGURSSHGRQWKH6FRWWLVKLVODQGRI
*UXLQDUG 7KH VSRUHV ZHUH VR UHVLOLHQW WKDW LQ  RYHU  \HDUV
ODWHUWKHVSRUHVZHUHVWLOODFWLYHDQGWKHLVODQGZDVGHFRQWDPLQDWHG
ZLWK KXQGUHGV RI WKRXVDQGV RI OLWUHV RI )RUPDOGHK\GH 7KH ODUJH
VFDOH XVH RI $QWKUD[ DV D WHUURU ZHDSRQ E\ ORZ WHFK WHUURULVW V LV
XQOLNHO\ DV DOWKRXJK LW KDV EHHQ XVHG DJDLQVW PHGLD RUJDQLVDWLRQV
WKURXJKRXW WKH ZRUOG YLD PDLO GHOLYHULHV WKLV LV IDU IURP DQ HIIHFWLYH
GHOLYHU\PHWKRGPRVWO\UHVXOWLQJLQHDV\WRWUHDWVNLQ$QWKUD[FDVHV
$VZLWKPRVWELRORJLFDOZHDSRQVLWLVQRWSU RGXFWLRQRIWKHELRORJLFDO
DJHQWWKDWLVWKHSUREOHPIRUWKHWHUURULVWEXWWKHGHYHORSPHQWRIDQ
HIIHFWLYHPHWKRGRIGHOLYHU\LQSDUWLFXODUIRUDQDLUERUQHDJHQW
' 0RGHUQ 5XOHV $QWKUD[ LQIHFWLRQ ZLOO WDNH WZR IRUPV HLWKHU
FXWDQHRXVDQWKUD[RULQKDODWL RQDQWKUD[
:LWK FXWDQHRXV DQWKUD[ WKH LQIHFWLRQ FRPHV TXLFNO\
W\SHV $* SURGXFHG E\ WKH DQDHURELF EDFWHULXP &ORVWULGLXP
ERWXOLQXP 7KH\ DUH W\SLFDOO\ IRUPHG LQ FDQQHG IRRGV DQG
VXEVHTXHQWO\LQJHVWHGDOWKRXJKWKHVSRUHIRUPRIWKHRUJDQLVPPD\
RFFDVLRQDOO\JDLQDFFHVVWRWKHERG\WKURXJKZRXQGVRUWKURXJKWKH
*, WUDFW EHIRUH JHUPL QDWLQJ DQG SURGXFLQJ WR[LQ ,QWHQWLRQDO UHOHDVH
E\EHOOLJHUHQWVRUWHUURULVWVZRXOGOLNHO\LQYROYHDHURVROL]DWLRQRISUH 
IRUPHGWR[LQZKLFK FRXOGWKHQSURGXFHGLVHDVHYLDWKH LQKDODWLRQDO
URXWH 'HOLEHUDWH FRQWDPLQDWLRQ RI IRRG VXSSOLHV LV DOVR SRVVLEOH
%RWXOLQXP WR[LQV DFW E\ EORFNLQJ DFHW\OFKROLQH UHOHDVH DW WKH
QHXURPXVFXODU MXQFWLRQ DQG LQ WKH FHQWUDO DQG SHULSKHUDO QHUYRXV
V\VWHPV ,Q WKH IDFH RI ODUJH QXPEHUV RI FDVXDOWLHV DQGRU LQ WKH
DEVHQFH RI SURPSW LQWHQVLYH DQG ORQJ WHUP PHGLFDO PDQDJHPHQW 
ERWXOLVPFDQEHWKRXJKWRIDVDOHWKDODJHQW
7KH GLDJQRVLV RI ERWXOLVP LV PDGH FOLQLFDOO\ DV WKHUH DUH
QR VSHFLILF ODERUDWRU\ ILQGLQJV DQG D OLPLWHG GLIIHUHQWLDO GLDJQRVLV
$VVD\VIRUWKHVHWR[LQVDUHQRWZLGHO\ DYDLODEOH,QWHQWLRQDOUHOHDVH
VKRXOG EHVXVSHFWHGLIQXPHURXVFR ORFDWHGFDVXDOWLHVSUHVHQWZLWK
SURJUHVVLYHGHVFHQGLQJEXOEDUPXVFXODUDQGUHVSLUDWRU\ZHDNQHVV
'HFRQWDPLQDWLRQ RI VXUIDFHV FRQWDPLQDWHG E\ WR[LQ PD\ EH
DFFRPSOLVKHG XVLQJ VRDS DQG ZDWHU RU  K\SRFKORULWH 6SRUHV
DUHEHVWNLOOHGE\SUHVVXUH FRRNLQJRIIRRGVWXIIVWREHFDQQHG7R[LQ
LV QRW GHUPDOO\ DFWLYH DOWKRXJK VSRUHV PD\ HQWHU WKURXJK VNLQ
IRUPLQJ SDLQOHVV EODFNHQHG QHFURWL]LQJ OHVLRQV VXUURXQGHG E\
PRGHUDWH WR VHYHUH HGHPD *HQHUDOO\ WKH\ RFFXU DW WKH VLJKW RI D
ZRXQG RI VRPH VRUW LQ WKH VNLQ VXUIDFH DQG VSUHDGIURP WKDW SRL QW
8QWUHDWHG LW FDQ OHDG WR VHSWLPLFLD DQG GHDWK EXW WKLV LV UDUH
RFFXULQJ LQ QR PRUH WKDQ  RI WKH FDVHV ,Q ' WKH OHVLRQV
VKRXOG VWDUW DSSHDULQJ   GD\V DIWHU LQIHFWLRQ $ ZHHN DIWHU WKH
OHVLRQV DSSHDU WKH DUHD WKH\ DUH RQ VKRXOG EH FRQVLGHUHG XVHOHVV
DVEOHHGLQJVWDUWVDQGWKHLQIHFWLRQJHWVLQWRWKHEORRG$WWKDWSRLQW
V QHUYRXV V\VWHP 7KH FKDUDFWHU ZLOO ORVH  SRLQW RI '(;
WKHGLVHDVHVKRXOGZHDNHQWKHFKDUDFWHUE\SRLQWHDFKRI675DQG
&21 7KLV ORVV FDQQRW EHUHFRYHUHG XQWLO WKH GLVHDVH LV WUHDWHG E\
DQWLELRWLFV'HDWK RFFXUVZKHQHLWKHUUH DFKHV8SRQ EHLQJFXUHG
WKHORVW675DQG&21ZLOOHDFKUHWXUQDWDUDWHRISRLQWVSHUGD\
$IIOLFWLRQE\FXWDQHRXVDQWKUD[FDQEHDYRLGHGE\DIRUWLWXGHVDYHYV
'&
ZRXQGVDQGVHFRQGDU\DHURVROVIURPDIIHFWHGSDWLHQWVSRVHQRULVN
RIERWXOLVPWUDQVPLVVLRQ,QWHQWLRQDOO\ UHOHDVHGDHURVROVRIER WXOLQXP
WR[LQ SUREDEO\ SRVH OLWWOH ULVN EH\RQG WKH LPPHGLDWH SHULRG RI
UHOHDVH ,Q WKH HYHQW WKDW FRQWDPLQDWLRQ RI IRRGVWXIIV LV VXVSHFWHG
SUHIRUPHGWR[LQPD\EHGHVWUR\HGE\ERLOLQJIRUPLQXWHV
' 0RGHUQ 5XOHV %RWXOLQXP DFWV DV D QHXURWR[LQ 6WDUW LQJ  WR
 KRXUV DIWHU DIIOLFWLRQ WKH WR[LQ EHJLQV WDNLQJ LWV WROO RQ WKH
FKDUDFWHU
HYHU\  KRXUV XQWLO GHDWK E\ UHVSLUDWRU\ IDLOXUH $GGLWLRQDOO\ &21
DQG 675 ZLOO EH ORVW DW D UDWH RI  SRLQW SH U GD\ 7KH WR[LQ FDQ EH
QHXWUDOL]HG E\ WDNLQJ DQ DQWLWR[LQ PDGH IRU KRUVHV ,I WKH FKDUDFWHU
ORVHVPRUHWKDQ'(;EHIRUHWKHDQWLWR[LQ LVDGPLQLVWHUHGWKHUH
ZLOOEHSHUPDQHQWGDPDJH'(;675DQG&21ZLOOUHWXUQDWDUDWH
RI  SRLQW SHU ZHHN ,I PRUH W KDQ  '(; ZDV ORVW WKHQ WKH
FKDUDFWHU ZLOO SHUPDQHQWO\ ORVH  SRLQW HDFK IURP '(; &21 DQG
 (OURUMOIGR)NKSOIGR=KGVUTY
675 7KRVH ZKR VXIIHUHG IURP WKH SRLVRQ IRU D SURORQJHG SHULRG
WHQG WR VXIIHU IURP ZHDNQHVV DQG VKRUWQHVV RI EUHDWK WKDW ODVWVIRU
\HDUV$IIOLFWLRQFDQEHDYRLG HGE\DIRUWLWXGHVDYHYV'&
&KROHUD 9LEULRFKROHUDH  %DFWHULDO$JHQW
6\PSWRPV 7KHLQFXEDWLRQSHULRGLV GD\VZKLOHDODUJHQXPEHU
RI LQIHFWHG SHUVRQV UHPDLQ DV\PSWRPDWLF WKH FODVVLF IRUP RI
FKROHUD LV QRWHZRUWK\ IRU LWV VHYHULW\ DQG VXGGHQ RQVHW 9RPLWLQJ
DEGRPLQDO GLVWHQWLRQ DQG SDLQ ZLWK OLWWOH RU QR IHYHU DUH IROORZHG
UDSLGO\E\DSURIXVHZDWHU\GLDUUKHDZLWKDULFH ZDWHUDSSHDUDQFH
)OXLGORVVHVPD\UHDGLO\H[FHHGOLWHUVSHUGD\
2XWFRPH :LWKRXW WUHDWPHQW GHDWK PD\ UHVXOW IURP VHYHUH
GHK\GUDWLRQK\SRYROHPLDDQGVKRFN
6WDWXV 7KLV ZDV QRW D ELRZHDSRQ GHYHORSHG DV SDUW RI WKH ,UDTL
ELRORJLFDOZHDSRQVSURJUDPV
&KROHUD LV DQ LQIHFWLRQ FDXVHG E\ WKH EDFWHULXP 9LEULR
FKROHUDHDQGDFTXLUHGWKURXJKWKHLQJHVWLRQRIFRQWDPLQDWHGZDW HU
SURIXVH VZHDWLQJ WKH GHYHORSPHQW RI SXOPRQDU\ HGHPD F\DQRVLV
K\SRWHQVLRQ DQG ILQDOO\ UHVSLUDWRU\ IDLOXUH DQG FLUFXODWRU\ FROODSVH
7LPH WR GHDWK ZRXOG OLNHO\ EH  KRXUV GHSHQGLQJ RQ WKH GRVH
UHFHLYHG
7KH GLDJQRVLV RI ULFLQ LV ODUJHO\ FOLQLFDO DQG VKRXOG EH
VXVSHFWHG LQ D VHWWLQJ RI PDVV FDVXDOWLHV ZLWK D VLPLODU DQG
DSSURSULDWHFOLQLFDOSLFWXUH)DLOXUHWRUHVSRQGWRDQWLELRWLFVKHOSVWR
GLIIHUHQWLDWH ULF LQ H[SRVXUH IURP SXOPRQDU\ LQIHFWLRQV SURGXFHG E\
EDFWHULDODJHQWV$Q(/,6$H[LVWV DQG PD\EH SHUIRUPHGRQSDLUHG
DFXWHDQGFRQYDOHVFHQWVHUD1RVSHFLILFFXUDWLYHWUHDWPHQWH[LVWV
DQG FDUH LV WKXV VXSSRUWLYH ,Q FDVHV RI JDVWURLQWHVWLQDO H[SRVXUH
JXWGHFRQWDPLQDWLRQYLDODYDJHDFWLYDWHGFKDUFRDODQGFDWKDUWLFVLV
ZDUUDQWHG /DUJH DPRXQWV RI YROXPH UHSODFHPHQW PD\ EH
QHFHVVDU\5LFLQPD\EHLQDFWLYDWHGZLWKK\SRFKORULWH6LQFHLW
LVQRW GHUPDOO\ DFWLYHDQG LVLQYRODWLOH GHFRQWDPLQDWLRQPD\ QRW EH
DVFULWLFDODVZLWKFHUWDLQRWKHUELRORJLFDODQGFKHPLFDODJHQWV
5LFLQ LV PRVW IDPRXV IRU LWV XVH DV DQ DVVDVVLQDWLRQ
ZHDSRQ UDWKHU WKDQ DV D ZHDSRQ RI PDVV GHVWUXFWLRQ %XOJDULDQ
RU IRRG 7KH GLVHDVH PDQLIHVWV DV D ZDWHU\ VHFUHWRU\ GLDUUKHD VR
SURIXVH WKDW VXSSOLHV RI ,9 IOXLGV DUH RIWHQ H[KDXVWHG GXULQJ
HSLGHPLFV ,QWHQWLRQDO XVH E\ EHOOLJHUHQWV RU WHUURULVW JURXSV ZRXOG
SUHVXPDEO\ LQYROYH WKH FRQWDPLQDWLRQ RI IRRG RU ZDWHU V RXUFHV
&KROHUD LV LQFDSDFLWDWLQJ EXW LQ WKH IDFH RI ODUJH QXPEHUV RI
GLVVLGHQW*HRUJL0DUNRYZDVNLOOHGE\SRLVRQGDUWILOOHGZLWKULFLQDQG
ILUHGIURPDQXPEUHOODLQ/RQGRQLQ
' 0RGHUQ 5XOHV 5LFLQ LV H[WUHPHO\ WR[LF DQG QR
DQWLGRWHFXUUHQWO\H[LVWVIRULW,WVV\PSWRPVRQVHWZLWKLQDPDWWHURI
KRXUV FDXVLQJ IHYHU DOO PDQQHU RI JDVWURLQWHVWLQDO SUREOHPV
FDVXDOWLHVDQGWKHEUHDNGRZQLQPHGLFDOFDUHRIWHQDVVRFLDWHGZLWK
ZDUDODUJHQXPEHURIGHDWKVDUHSRVVLEOH
7KH GLDJQRVLV LV W\SLFDOO\ PDGH FOLQLFDOO\ RQ WKH EDVLV RI
SURIRXQG ZDWHU \ GLDUUKHD DQG FRQVHTXHQW GHK\GUDWLRQ 0LFURVFRSLF
H[DP RI VWRRO VDPSOHV UHYHDOV IHZ RU QR UHG RU ZKLWH FHOOV 7KH
RUJDQLVP PD\ EH LGHQWLILHG LQ VWRRO E\ GDUNILHOG RU SKDVH FRQWUDVW
PLFURVFRS\DQGJURZVRQDYDULHW\RIFXOWXUHPHGLD
)RU WUDWHPHQW WKH PD LQVWD\ RI WKHUDS\ LV IOXLG DQG
HOHFWURO\WHUHSODFHPHQW7KLVPD\EHDFFRPSOLVKHGWKURXJKWKHXVH
RI RUDO UHK\GUDWLRQ VDOWV RU GLOXWHG *DWRUDGH LQ OHVV VHYHUH FDVHV
ZKHUHDV,9IOXLGVDUHRIWHQUHTXLUHGLQFDVHVRIVHYHUHGHK\GUDWLRQ
$QWLELRWLFV VKRUWHQ WK H GXUDWLRQ RI GLDUUKHD DQG WKHUHE\ GHFUHDVH
IOXLGORVV
6WULFW DWWHQWLRQ PXVW EH SDLG WR WKH DYRLGDQFH RI
FRQWDPLQDWHG ZDWHU LQ DQ RXWEUHDN DUHD 'ULQNLQJ ZDWHU DV ZHOO DV
ZDWHU XVHG LQ EDWKLQJ ZDVKLQJ XWHQVLOV DQG FRRNLQJ PXVW EH
REWDLQHGIURPDVDIH VRXUFHRUPXVWEHERLOHGRUFKORULQDWHGSULRUWR
XVH
' 0RGHUQ 5XOHV )RU  LQ  SHRSOH FKROHUD GLVSOD\V LWV
V\PSWRPV ,Q WKHVH LQVWDQFHV GHDWK FDQ RFFXU ZLWKLQ KRXUV GXH WR
WKHUDWHRIGHK\GUDWLRQ7KHFKDUDFWHUZLOOORVHSRLQWRIFRQVWLWXWLRQ
HYHU\  KRXUV XQWLO GHDWK )ROORZLQJ WKHUDS\ ZLWK IOXLGV DQG
HOHFWURO\WHV ZLOO HIIHFWLYHO\ QHXWUDOL]H WKHVH ORVVHV EXW WLHV WKH
FKDUDFWHUWRDPHGLFDOIDFLOLW\IRUWKHGXUDWLRQDVWKHLOOQHVVZLOOWDNH
ZHHNVWRUXQLWVFRXUVHDQG UHFRYHU$QWLELRWLFV ZLO OUHGXFHWKLV
UHFRYHU\WLPHE\KDOIEXWDUHXQLPSRUWDQFHFRPSDUHGWRWKHQHHGWR
WDSSHDUXQWLOWZRWR
NHHS WKH SDWLHQW K\GUDWHG $IIOLFWLRQ FDQ EH DYRLGHG E\ D IRUWLWXGH
VDYHYV'&
ZHDNQHVV PXVFOH DFKHV EUHD WKLQJ GLIILFXOW\ F\DQRVLV EOXH VNLQ
DQGFKHVWSDLQ(VVHQWLDOO\RQFHSRLVRQHGWKHFKDUDFWHUZLOOORVH
SRLQW IURP 675 &21 RU '(; HDFK KRXU GHWHUPLQHG UDQGRPO\
:KHQRQHUHDFKHVGHDWKRFFXUV7KHUHLVQRNQRZQFXUHIRUULFLQ
SRLVRQLQJ$IIOLFWLR QFDQEHDYRLGHGE\DIRUWLWXGHVDYHYV'&
6XOIXU 0XVWDUGV  ELVFKORURHWK\OVXOSKLGH 
%OLVWHULQJ$JHQW
6\PSWRPV6NLQEOLVWHULQJGDPDJHWRDLUSDVVDJHV
2XWFRPH'HDWKSRVVLEOH
6WDWXV 8VHG IURP   GXULQJ WKH ,UDT ,UDQ :DU ,UDT FODLPV LW
SURGXFHGWRQV
6XOIXU 0XVWDUGV EHWWHU NQRZQ DV 0XVWDUG JDV LV RQH RI
WKH ODWHVW JHQHUDWLRQV RI RQH RI WKH ROGHVW RI WKH PRGHUQ FKHPLFDO
ZHDSRQV7KHVHDJHQWVDUHQRWGHSOR\HGZLWKWKHLQWHQWWRLQMXUHRU
NLOOHQHP\WURRSVEXWDVDPHDQVRIIRUFL QJHQHP\WURRSVWRHQJDJH
VDIHW\SURWRFROVWKHUHE\IRUFLQJWKHPWRILJKWIDUOHVVHIILFLHQWO\WKDQ
WKH\ ZRXOG RWKHUZLVH ,Q LWV SXUH VWDWH LW LV FRORUOHVV DQG QHDUO\
RGRUOHVV LGHQWLILDEOH RQO\ E\ D YHU\ IDLQW VFHQW RI URWWLQJ RQLRQV RU
PXVWDUG
6XOIXU PXVWDUG DWWDFNV WKH VNLQ H\HV  OXQJV DQG JDVWUR 
LQWHVWLQDO WUDFW DV ZHOO DV RUJDQV GHDOLQJ ZLWK EORRG IURP ERQH
PDUURZ WR WKH OLYHU WKH SDQFUHDV DQG NLGQH\V FDXVLQJ VHYHUH
FHOOXODUGLVUXSWLRQWRDOORIWKHP6\PSWRPVGRQ
WZHQW\IRXUKRXUVDIWHUH[SRVXUHVRWKHGDPDJHLVGRQHE\WKHWLPH
V\PSWRPV DSSHDU 7KH V\PSWRPV RI D PLOG SRLVRQLQJ E\ VXOSKXU
PXVWDUGDUHDFKLQJ H\HVPDVVLYHDPRXQWRI WHDULQJLQIODPPDWLRQ
RI WKH VNLQ LUULWDWLRQ RI WKH PXFXV PHPEUDQH FRXJKLQJ VQHH]LQJ
5LFLQ 5LFLQXVFRPPXQLV  3ODQW7R[LQ KRDUVHQHVV 2YHUDOO PLOG SRLVRQLQJV GR QRW ZDUUDQW PHGLFDO
WUHDWPHQW +RZHYHU XQOLNH PLOG SRLVRQLQJV H[SRVXUH WR ODUJH
6\PSWRPV)HYHUVHYHUHUHVSLUDWRU\GLVWUHVV
DPRXQWV RI VXOSKXU PXVWDUG DUH LQFDSDFLWDWLQJ DQG UHTXLUH
2XWFRPH'HDWKLIXQWUHDWHG1RWFRQWDJLRXV
LPPHGLDWHPHGLFDODWWHQWLRQ6XFKLQMXULHVWKDWFDQRFFXUDUHORVVRI
6WDWXV,UDTFODLPVSURGXFWLRQRIWKUHHJDOORQV81XQDEOHWRYHULI\
VLJKWQDXVHDVHYHUHUHVSLUDWLRQGLIILFXOW\YRPLWLQJEOLVWHULQJRIWKH
SUHVHQWVWDWXV
VNLQDQGGLDUKHD7KHOLTXLGVWDWHRIVXOSKXUPXVWDUGFDXVHVVHYHUH
5LFLQLVDSURWHLQWR[LQZKLFKDFWVDVDFHOOXODUSRLVRQDQG
LQMXULHV ZKHUHDV H[SRVXUH WR VXOSKXU PXVWDUG LQ WKH JDV VWDWH
LV UHDGLO\ SURGXFHG IURP FDVWRU EHDQV ZKLFK DUH XELTXLWRXV
XVXDOO\JDVPLOGLQMXULHV'HSHQGLQJRQWKHOHYHORIH[SRVXU HWRWKH
WKURXJKRXW WKH ZRUOG :DVWH IURP WKH FRPPHUFLDO SURGXFWLRQ RI
PXVWDUGDJHQWVZLOOFDXVHGLIIHUHQWOHYHOVRIVNLQLQIODPDWLRQUDQJLQJ
FDVWRURLO FRQWDLQVULFLQPDNLQJLWHDV\ IRU VXFKDVXEVWDQFH WR
IURPVPDOOLUULWDWLRQWRDVNLQQHFURVLVWKDWLVVRFRPSUHKHQVLYHWKDW
IDOO LQWR WKH KDQGV RI ELRWHUURULVWV 1DWXUDOO\ RFFXUULQJ FDVHV RI ULFLQ
QR EOLVWHUV RFFXU 2QFH SRLVRQHG E\ VXOIXU PXVWDUG WKH GDPDJH
LQYROYH LQJHVWLRQ RI FDVWRU EHDQV DQG DUH PDUNHG E\ VH YHUH
GRQHDQG DQ\PHGLFDOFDUHLVGLUHFWHGDW WUHDWLQJWKHV\PSWRPV
JDVWURLQWHVWLQDO V\PSWRPV YDVFXODU FROODSVH DQG GHDWK $V ULFLQ LV
' 0RGHUQ 5XOHV ,I WKH UHVXOW RI H[SRVXUH LV PLOG V\PSWRPV
WR[LFE\QXPHURXVH[SRVXUHURXWHVKRZHYHULWVXVHE\EHOOLJHUHQWV
UHGXFH'(;&21DQG675E\KDOIIRUGGD\V,IH[SRVXUHUHVXOWV
PLJKW LQYROYH SRLVRQLQJ RI ZDWHU RU IRRGVWXIIV LQRFXODWLRQ YLD ULFLQ 
LQ VHYHU V\PSWRPV UHGXFH '(; &21 DQG 675 E\  IRU G
ODFHG SURMHFWLOHV RU DHURVROL]DWLRQ RI OLTX LG ULFLQ RU O\RSKLOL]HG
GD\V 2QFH WKLV SHULRG KDV FRQFOXGHG WKH FKD UDFWHU ZLOO ORVH  
SRZGHU :KHQ XVHG DV DQ DHURVRO FHOO GHDWK LQ OXQJ WLVVXH DQG
SRLQWV HDFK IURP '(; DQG &21 $IIOLFWLRQ FDQ EH DYRLGHG E\ D
SXOPRQDU\ FDSLOODULHV ZRXOG EH H[SHFWHG WR OHDG WR SXOPRQDU\
IRUWLWXGHVDYHYV'&
HGHPD DQG K\SR[LF UHVSLUDWRU\ IDLOXUH :KHQ LQKDOHG DV D VPDOO
SDUWLFOHDHURVROULFLQZRXOGOLNHO\SURGXFH V\PSWRPVZLWKLQKRXUV
)HYHUFRXJKG\VSQHDQDXVHDDQGFKHVWWLJKWQHVVDUHIROORZHGE\

7DEXQ 2HWK\OGLPHWK\ODPLGRSKRVSKRU\OF\DQLGH
 1HUYH$JHQW
6\PSWRPV6ZHDWLQJVKRUWQHVVRIEUHDWKPXVFOHVSDVP
2XWFRPH'HDWKSRVVLEOH
6WDWXV 8VHG IURP   GXULQJ WKH ,UDT ,UDQ :DU ,UDT FODLPV LW
SURGXFHGWRQV
7DEXQ DOVR NQRZQ DV *$ ZDV GHYHORSHG LQ  E\
VLQLWLDOHIIHFWVZLOO RFFXUZLWKLQVHFRQGV
*HUPDQ VFLHQWLVW *HUDUG 6FKUDHGHU DV DQ RIIVKRRW RI SHVWLFLGH
UHDVHDUFK2IDOOQHUYHDJHQWVLWLVWKHHDVLHVWWRPDQXIDFW XUH,WLV
(OURUMOIGR)NKSOIGR=KGVUTY 
LQFRPEDWLQJWKHQHUYH DJHQWGHSHQGVJUHDWO\RQZKDWQHUYHDJHQW
LVSUHVHQW7KHPL[WXUHRIDWURSLQHDQGWKHUHDFWLYDWRULVLQMHFWHGLQWR
DQ LQGLYLGXDO XVLQJ ZKDW LV NQRZ DV DQ DXWR LQMHFWRU 7KH DXWR
LQMHFWRUFRQVLVWRIWKHWZRDFWLYHFRPSRQHQWVZKLFKDUHLQMHFWHGLQWR
DQ H[SRVHG LQGLYLGXDO WKURXJK WKH XVH RI D YHU\ ORQJ QHHGOH 7KH
DXWRLQMHFWRU LV XVXDOO\ LQMHFWHG LQWR DQ LQGLYLGXDOV WKLJK RU DQRWKHU
DUHDZKHUHWKHDQWLGRWHFDQUHDFKWKHKHDUWUH ODWLYHO\TXLFNO\
'0RGHUQ 5XOHV 7DEXQ
DQGFDQRQO\EHQHXWUDOL]HGZLWKDQDXWR LQMHFWRU
,I H[SRVXUH LV FRQVLGHUHG ORZ GRVH WKH V\PSWRPV ZLOO
DOPRVWRGRUOHVVVPHOOLQJYHU\IDLQWO\RIIUXLWDQGFRORUOHVVLQLWVSXUH YDQLVK ZLWKLQ ILYH PLQXWHV RI DXWR LQMHFWLRQ RU ZLOO SHUVLVW I RU XS WR
VWDWH /LNH WKH RWKHU * DJHQWV WDEXQ LV D QRQ SHUVLVWHQW YRODWLOH WKUHHZHHNVZLWKQRWUHDWPHQW
DJHQW ,W FDQ EH DEVRUEHG WKURXJK LQKDODWLRQ LQMHFWLRQ RU WKH VNLQ ,I H[SRVXUH LV PRGHUDWH V\PSWRPV ZLOO DOVR UHVXOW LQ
ZLWK LQLWLDO V\PSWRPV DSSHDULQJ Z LWKLQ VHFRQGV DQG PRUH VHYHUH
V\PSWRPV RFFXULQJ XS WR KRXUV ODWHU /HWKDO GRVDJH RFFXUV DW D
UHODWLYHO\KLJKTXDQWLW\FRPSDUHGWRRWKHUQHUYHDJHQWV
8SRQ H[SRVXUH WKH LQLWLDO V\PSWRPV DUH D UXQQLQJ QRVH
FRQWUDFWLRQ RI WKH SXSLOV YLVXDO DFFRPPRGDWLRQ GH WHULRUDWHV
KHDGDFKHVOXUUHGVSHHFKQDXVHDKDOOXFLQDWLRQVSURQRXQFHGFKHVW
SDLQV DQG DQ LQFUHDVH LQ WKH SURGXFWLRQ RI VDOLYD ,I WKH GRVDJH LV
ORZWKHV\PSWRPVZLOOQRWH[FHHGWKLVOHYHODQGZLOOQRWEHOHWKDO$W
KLJKHU GRVHV RI D QHUYH DJHQW WKH DI RUH PHQWLRQHG V\PSWRPV DUH
PRUH SURQRXQFHG &RXJKLQJ DQG EUHDWKLQJ SUREOHPV DOVR EHJLQ WR
RFFXU 7KH LQGLYLGXDO WKHQ PD\ EHJLQ WR JR LQWR FRQYXOVLRQV DQG D
VXEVHTXHQWFRPDWRVHDQGGHDWK$WGRVHVHYHQKLJKHUDQH[SRVHG
LQGLYLGXDOZRXOGDOPRVWLPPHGLDWHO\J RLQWRFRQYXOVLRQVDQGGLHIURP
VXIIRFDWLRQ EHFDXVH RI WKH VLPXOWDQHRXV VKXW GRZQ RI WKH QHUYRXV
DQGUHVSLUDWRU\V\VWHPV
OO VWLOO HQG XS EHLQJ D GURROLQJ ZKHHOFKDLU 
%HFDXVH DOO QHUYH DJHQWV KDYH D YHU\ UDSLG HIIHFW RQ DQ
LQGLYLGXDO LI WUHDWPHQW LV WR ZRUN LW PXVW RFFXU LPPHGLDWHO\ DIWHU
H[SRVXUH RU HOVH GHDWK LV FHUWDLQ WR RFFXU $ JHQHUDO DQWLGRWH WR
QHUYHDJHQWVLVDFRPELQDWLRQRIDWURSLQHDQGDUHDFWLYDWRU$WURSLQH
SURWHFWV DJDLQVW WKH H[FHVV RI DFHW\OFROLQH IRUPHG GXULQJ QHUYH
DJHQW SRLVRQLQJ 7KH UHDFWLYDWRU
V MRE LV WR UHVWRUH
DFHW\OFKROLQHVWHUDVHWR LWV QRUPDO IXQFWLRQV 7KH GHJUHH RI GLIILFXOW\
EUHDWKLQJGLIILFXOW\DQGORVVRIPRWRUFRQWURO '(;DQGHYHQWXDOO\
ZRUVHQ WR FRQYXOVLRQV ZKLFK ZLOO SDVV DIWHU VHYHUDO KRXUV ,I QRW
WUHDWHG PRGHUDWH H[SRV XUH ZLOO UHVXOW LQ D SHUPDQHQW ORVV RI G
'(;
,IH[SRVXUHLVOHWKDOV\PSWRPVZLOOUDSLGO\GHJHQHUDWHLQWR
EUHDWKLQJSUREOHPVFRQYXOVLRQVFRPDDQGGHDWK,IXQWUHDWHGWKH
YLFWLPZLOOGLHZLWKLQWKHKRXU:LWKWUHDWPHQWWKHYLFWLPZLOOUHFRYHU
LQGGD\VEXWZLOOVXIIHUSHUPDQHQWGDPDJHPDLQO\FKURQLFKHDOWK
SUREOHPV GDPDJHG H\HVLJKW FKURQLF KHDGDFKHV HWF (IIHFWLYHO\
WKHFKDUDFWHUZLOOORVHG'(;DQGG&21SHUPDQHQWO\
,IWKHGRVDJHLVVXSHUOHWKDOH[SHFWWREHGHDGLQVLGHRI
PLQXWHV 7KH FRQYXOVLRQV ZLOO EH VR EDG WKDW \RX EUHDN \RXU RZQ
ERQHV DQG \RX GLH D JXUJOLQJ IURWK\ PRXWKHG GHDWK (YHQ LI
VRPHRQH JHWV WKH EULJKW LGHD RI LQMHFWLQJ \RX ZLWK D KDOI D GR]HQ
GRVHV RI DWURSLQH \RX
ERXQGZUHFNRIDKXPDQEHLQJLI\RXKDSSHQWRVXUYLYH
:KHQH[SRVHGWR7DEXQ\RXJHWRQHIRUWLWXGHVDYH<RXUGLHUROO
UHVXOWVGHWHUPLQH\RXUOHYHORIH[SRVXUH,I\RXIDLOWREHDW'&
\RXUGRVHLVVXSHUOHWKDO)DLOLQJ'&LVOHWKDOIDLOLQJ'&LV
PRGHUDWHDQGIDLOLQJ'&LVPLOGORZGRVH
 J%@2[*"-2C %
7KH $O4XGV LV WKH SULPDU\ VTXDG DXWRPDWLF
:HDSRQ $O4XGV
ZHDSRQ IRU WKH ,UDTL $UP\ PDQXIDFWXUHG E\ ,UDT DQG
0DQXIDFWXUHU <HDU 3
EDVHG DOWHUDWLRQV WR WKH $.0 PDGH IRU WKH <XJRVODYLDQ
PDGH0%DXWRPDWLFULIOH 1DWLRQ ,UDT
:KLOH PRVW QDWLRQV XVLQJ 6RYLHW DUPV ZRXOG &DOLEHU [PP 0DJV 
QRUPDOO\ FKRRVH WKH 53. RU 53. DV WKHLU 6$: D $FFXUDF\ *URXS 02$
KDQGIXORIQDWLRQVLQVWHDGFKRVHWRVLPSO\PRGLI\WKH$.0 .LOO
IRUWKHSXUSRVH)RUWKH,UDTLVWKLVPHDQWWDNLQJWKHLURZQ 9HORFLW\ PV (QHUJ\
7DEXNDVVDXOWULIOHDQGPRGLI\LQJWKDW7KH7DEXNUHFHLYHG :HLJKW (PSW\ NJ 52) 66 
D ORQJHU KHDYLHU EDUUHO D  NJ UHPRYDEOH ELSRG DQG /RDGHG 0% 
FRROLQJ ILQV ORFDWHG EHQHDWK WKH JDV ERWWOH RQ WKH /HQJWK PP %XUVW 
XQGHUVLGHRIWKHULIOH7KHUHVXOWLQJ$O4XGVLVYHU\VLPLODU 5DQJH (IIHFW P $XWR 
WRWKH<XJRVODYLDQ0%DQGWKH%XOJDULDQ5..6 0D[ P &\FOLF 
:KLOHWKH$O4XGVFDQXVHWKH DQGURXQG 1RWHV 3.6WULSRGDFFRXQWVIRUNJRIWKHZHLJKW
PDJD]LQHVRIWKH53.LWLVQRUPDOO\HQFRXQWHUHGZLWK
URXQG $.0 PDJD]LQHV 7KH $O4XGV LV D UHODWLYHO\ UHFHQW
ZHDSRQLQ,UDTLDUVHQDOVDQGSUHYLRXVO\SURFXUHG53.VDOVRVHUYHDV6TXDG$XWRPDWLF:HDSRQVLQWKH,UDTL$UP\
J%@2[*"-2C %
&\EHUWKULOOHU
(IIHFW :HLJKW :HLJKW
5DWHRI 5DQJH (PSW\ /RDGHG
:HDSRQ 7\SH $&& &RQ $Y &DOLEHU '0 $PPR )LUH 5HO PHWHUV NJ NJ &RVW
>66@
$O4XGV0DFKLQH5LIOH $5  7 0 %ORF   95    
>$@>&@
6SHFLDO5XOHV

'6\VWHP
'DPDJH 5DQJH 5DWHRI 3XUFKDVH
:HDSRQ 'DPDJH &ULWLFDO 7\SH ,QFUHPHQW )LUH 0DJ 6L]H :HLJKW '& 5HVWULFWLRQ
$O4XGV0DFKLQH5LIOH G  EDOOLVWLF  6$  /UJ OEV  0LO
6SHFLDO5XOHV

)8'*(
:HDSRQ 6KRWV 5DWHRI)LUH 5DQJH $FF\ 'PJ &RVW 1RWHV
$O4XGV0DFKLQH5LIOH  6$$& 0HGLRFUH 0HGLRFUH  
6SHFLDO5XOHV

$FWLRQ
675 0D[
:HDSRQ 'PJ 7\SH $FF 5PRG 5R) $PP :W &RVW 1RWHV
0LQ 5QJ
$O4XGV0DFKLQH5LIOH G 3/        
6SHFLDO5XOHV
 MG[2K-!
7KH 6WLQJHU PLVVLOH D IXOOGLPHQVLRQDO
:HDSRQ ),06WLQJHU
SURWHFWLRQZHDSRQLVWKH$UP\
VV\VWHPIRUVKRUWUDQJH
0DQXIDFWXUHU +XJKHV0LVVLOH6\VWHPV <HDU 
DLU GHIHQVH WKDW SURYLGHV WKH JURXQG PDQHXYHU
FRPPDQGHUIRUFHSURWHFWLRQDJDLQVWORZDOWLWXGHDLUERUQH 1DWLRQ 8QLWHG6WDWHV
WDUJHWV VXFK DV IL[HGZLQJ DLUFUDIW KHOLFRSWHUV &DOLEHU 0DJV URXQGEHOW
XQPDQQHG DHULDO YHKLFOHV DQG FUXLVH PLVVLOHV 7KH $FFXUDF\ *URXS 02$
6WLQJHULVODXQFKHGIURPDQXPEHURISODWIRUPV%UDGOH\ .LOO 3HQ
6WLQJHU )LJKWLQJ 9HKLFOH %UDGOH\ /LQHEDFNHU $YHQJHU 9HORFLW\ 6XSHUVRQLF (QHUJ\
+00:9 DQG KHOLFRSWHUV DV ZHOO DV 0DQ 3RUWDEOH $LU :HLJKW (PSW\ NJ 52) 66 
'HIHQVH 0$13$'6  ,W ZDV GHSOR\HG LQ  DV D /RDGHG NJ 0% 
UHSODFHPHQW IRU WKH DJLQJ 5HGH\H 6$0 XVHG E\ WKH /HQJWK PP %XUVW 
0DULQHVDIWHU\HDUVRIGHYHORSPHQW 5DQJH 0LQLPXP [P $XWR 
7KH 6WLQJHU LV D PDQSRUWDEOH VKRXOGHUILUHG 0D[ [NP &\FOLF 
JXLGHG PLVVLOH V\VWHP ZKLFK HQDEOHV WKH 0DULQH WR 1RWHV
HIIHFWLYHO\ HQJDJH ORZDOWLWXGH MHW SURSHOOHUGULYHQ DQG KHOLFRSWHU DLUFUDIW
'HYHORSHG E\ WKH 8QLWHG 6WDWHV $UP\ 0LVVLOH &RPPDQG WKH 6WLQJHU ZDV WKH
VXFFHVVRU WR WKH 5HGH\H :HDSRQ 6\VWHP 7KH V\VWHP LV D ILUHDQGIRUJHW
ZHDSRQHPSOR\LQJDSDVVLYHLQIUDUHGVHHNHUDQGSURSRUWLRQDOQDYLJDWLRQV\VWHP
6WLQJHU DOVR LV GHVLJQHG IRU WKH WKUHDW EH\RQG WKH V ZLWK DQ DOODVSHFW
HQJDJHPHQWFDSDELOLW\DQG,)),GHQWLILFDWLRQ)ULHQGRU)RHLPSURYHGUDQJHDQG
PDQHXYHUDELOLW\ DQG VLJQLILFDQW FRXQWHUPHDVXUHV LPPXQLW\ 7KH PLVVLOH
SDFNDJHG ZLWKLQ LWV GLVSRVDEOH ODXQFK WXEH LV GHOLYHUHG DV D FHUWLILHG URXQG
UHTXLULQJ QR ILHOG WHVWLQJ RU GLUHFW VXSSRUW PDLQWHQDQFH $ VHSDUDEOH UHXVDEOH
JULSVWRFNLVDWWDFKHGWRWKHURXQGSULRUWRXVHDQGPD\EHXVHGDJDLQ67,1*(5
ZLOO DOVR EH HPSOR\HG E\ WKH 3HGHVWDO0RXQWHG 6WLQJHU $LU 'HIHQVH 9HKLFOH DQG
WKH/LJKW$UPRUHG9HKLFOH$LU'HIHQVH9DULDQW/$9$'GXULQJWKHV
6LQFHWKHLULQWURGXFWLRQQHDUO\\HDUVDJR6WLQJHUVKDYHXQGHUJRQHD
VHULHV RI WKUHH XSJUDGHV GRQH WR ERWK FRUUHFW SUREOHPV WKDW EHFDPH HYLGHQW
GXULQJGHSOR\PHQWDVZHOODVWRLPSURYHLWVNLOOFDSDFLW\7KHLQLWLDOPRGHOZKLOH
GHVLJQHGWRKLW LQFRPLQJWDUJHWVRIWKHWLPHDFWXDOO\PDQDJHGWRVFRUHKLWV
 RI WKH WLPH LQ ILHOG XVH 7KH 6WLQJHU VDZ LWV ILUVW DFWLYH FRPEDW LQ WKH
)DONODQGV:DUXVHGE\WKH%ULWLVK'XULQJWKLVFRQIOLFWVHULRXVSUREOHPVZLWKWKH
6WLQJHU ZHUH H[SRVHG 7KH PLVVLOH IUHTXHQWO\ ORVW LWV ORFN RQ DQ DLUFUDIW DQG
UHWDUJHWHG DQRWKHU KHDW VRXUFH 7KLV FDXVH OLJKW GDPDJH WR D QXPEHU RI %ULWLVK
VKLSVZKHQVWLQJHUVVWUXFNVPRNHVWDFNVDQGLWGHVWUR\HGDWOHDVWRQHPHDOZKHQ
WKHPLVVLOHUHWDUJHWHGDILHOGNLWFKHQSUHSDULQJEUHDNIDVWIRUWKHWURRSV
7KHFXUUHQWYHUVLRQLVWKH6WLQJHU503%ORFN,5HPRWH3URJUDPPDEOH
3URFHVVRU 7KH 6WLQJHU 503 %ORFN , PDNHV VRIWZDUH DQG KDUGZDUH FKDQJHV
LQFOXGLQJD QHZUROOIUHTXHQF\VHQVRUDVPDOOEDWWHU\DQGDQ LPSURYHGFRPSXWHU
SURFHVVRUDQGPHPRU\7KH%ORFN,PLVVLOHXSJUDGHVWKH503PLVVLOHE\DGGLQJD
ULQJ ODVHU J\UR WR HOLPLQDWH WKH QHHG WR VXSHU HOHYDWH SULRU WR ILULQJ 7KH %ORFN ,
PLVVLOHDOVRLQFUHDVHVWKHRQERDUGSURFHVVLQJFDSDELOLW\DQGUHSODFHVWKHFXUUHQW
EDWWHU\ ZLWK D OLWKLXP EDWWHU\ %ORFN , LPSURYHV WKH DFFXUDF\ DQG ,5&&0
FDSDELOLWLHVRIWKHPLVVLOH7KH$UP\SURSRVHVWRILHOGPRUHWKDQ 6WLQJHU

503 %ORFN , PLVVLOHV WKDW ZLOO UHPDLQ LQ WKH LQYHQWRU\ XQWLO DW
OHDVW6WLQJHU503%ORFN,,LPSURYHV ERWKKDUGZDUH DQG
VRIWZDUHLQFOXGLQJDQDGYDQFHGLPDJLQJIRFDOSODQHDUUD\UROO
IUHTXHQF\ VHQVRU QHZ EDWWHU\ VLJQDO SURFHVVLQJ DQG
DGYDQFHGVRIWZDUH7KHUHDUH SODQVWRSURGXFH DSSUR[LPDWHO\
 6WLQJHU503 %ORFN ,, PLVVLOHV ,QLWLDOO\ LW ZDV SODQQHG
WKDWWKHVHQHZPLVVLOHVZRXOGEHJLQRSHUDWLRQDOGHSOR\PHQWLQ
 EXW FKDQJHV LQ PLOLWDU\ SODQQLQJ KDYH SODFHG WKDW JRDO
LQWRKLDWXVDWWKLVWLPH
7KH 6WLQJHU LV FUHZVHUYHG KHDY\ ZHDSRQ ILHOGHG E\ D WHDP RI WZR ZLWK UHJXODWLRQV UHVWULFWLQJ HDFK PDQ WR ILULQJ RQO\  WR 
PLVVLOHVLQFRPEDW7KHKLJKUDWHRIILUHLVDFFRPSOLVKHGE\RQHPDQDLPLQJDQGILULQJWKHZHDSRQZKLOHWKHRWKHUSUHSDUHVWKHQH[WURXQGIRU
ORDGLQJ
MG[2K-!
&\EHUWKULOOHU
(IIHFW :HLJKW :HLJKW
5DWHRI 5DQJH (PSW\ /RDGHG
:HDSRQ 7\SH $&& &RQ $Y &DOLEHU '0 $PPR )LUH 5HO PHWHUV NJ NJ &RVW
 [
),06WLQJHU%DVLF 0,6  1 02    85   
 P
),0$6WLQJHU503%ORFN  [
0,6  1 02    85   
,  P
),0$6WLQJHU503%ORFN  [
0,6  1 02    85   
,,  P
6SHFLDO5XOHV 7KHSULFHWDJLVIRUWKHODXQFKHURQO\7KHPLVVLOHVFRVWHDFK

'6\VWHP
'DPDJH 5DQJH 5DWHRI 3XUFKDVH
:HDSRQ 'DPDJH &ULWLFDO 7\SH ,QFUHPHQW )LUH 0DJ 6L]H :HLJKW '& 5HVWULFWLRQ

),06WLQJHU%DVLF  VODVKLQJ  66  /UJ OE  0LO


),0$6WLQJHU503%ORFN,  VODVKLQJ  66  /UJ OE  0LO


),0$6WLQJHU503%ORFN,,  VODVKLQJ  66  /UJ OE  0LO

6SHFLDO5XOHV 0LVVLOHVDUHHDFK3XUFKDVH'&

)8'*(
:HDSRQ 6KRWV 5DWHRI)LUH 5DQJH $FF\ 'PJ &RVW 1RWHV
),06WLQJHU%DVLF  66 6XSHUE 3RRU 3RRU 
),0$6WLQJHU503%ORFN,  66 6XSHUE )DLU 0HGLRFUH 
),0$6WLQJHU503%ORFN,,  66 6XSHUE *RRG )DLU 
6SHFLDO5XOHV 0LVVLOHVDUHHDFK

$FWLRQ
675 0D[
:HDSRQ 'PJ 7\SH $FF 5PRG 5R) $PP :W &RVW 1RWHV
0LQ 5QJ
),06WLQJHU%DVLF      NP U   
),0$6WLQJHU503%ORFN,      NP U   
),0$6WLQJHU503%ORFN,,      NP U   
6SHFLDO5XOHV 0LVVLOHVFDQEHILUHGURXJKO\RQFHSHUPLQXWHRURQFHSHUURXQGVU3ULFHLVIRUWKHODXQFKHURQO\0LVVLOHVFRVW
HDFK
 #+%-
7KH -DYHOLQ LV D PDQSRUWDEOH QH[WJHQHUDWLRQ
:HDSRQ -DYHOLQ$QWL7DQN*XLGHG0LVVLOH
JXLGHG DQWLDUPRU ZHDSRQ V\VWHP WKDW KDV EHHQ DYHU\
0DQXIDFWXUHU <HDU 
ORQJ WLPH FRPLQJ ,Q  GHILFLHQFLHV LQ WKH 0
'UDJRQ ZHUH GRFXPHQWHG OHDGLQJ WR WKH HYHQWXDO 1DWLRQ 8QLWHG6WDWHV
LVVXLQJ RI WKH -RLQW 6HUYLFHV 2SHUDWLRQDO 5HTXLUHPHQWV &DOLEHU 0DJV VLQJOHVKRW
GRFXPHQWRQWKH-DYHOLQLQZLWKUHYLVLRQVLQ $FFXUDF\ *URXS 02$
 \HDUV DIWHU WKH QHHG IRU WKH -DYHOLQ ZDV ILUVW .LOO 3HQ PP
LGHQWLILHG$GHYHORSPHQWFRQWUDFWZDVDZDUGHGLQ 9HORFLW\ PV (QHUJ\
DQGFRQFOXGHG LQ  WREH IROORZHGE\WKUHH \HDUVRI :HLJKW (PSW\ 52) 66 
WHVWLQJ EHIRUH HQWHULQJ IXOO SURGXFWLRQ LQ  %\ WKH /RDGHG NJ 0% 
RXWEUHDN RI 2SHUDWLRQ ,UDTL )UHHGRP WKH -DYHOLQ ZDV /HQJWK PP %XUVW 
ILHOGHGSULPDULO\E\WKH DQG $LUERUQHGLYLVLRQV
QG VW
5DQJH (IIHFWLYH P $XWR 
DVZHOODV WKH ,QIDQWU\'LYLVLRQ ,QIDQWU\'LYLVLRQ
QG UG
0D[ P &\FOLF 
 ,QIDQWU\ 'LYLVLRQ  ,QIDQWU\ 'LYLVLRQ  &DYDOU\ 1RWHV &/8ZHLJKVNJ
WK WK VW

'LYLVLRQDQGWKH ,QIDQWU\%ULJDGH)LHOGLQJZLOOQRWEH
WK

FRPSOHWHXQWLOZHOOLQWRSHUKDSVHYHQODWHU
7KH -DYHOLQ LV D YDVW LPSURYHPHQW RYHU WKH 0 'UDJRQ RSHUDWLQJ WR DQ HIIHFWLYH UDQJH RI  PHWHUV ,WV XVH RI DQ LPDJLQJ
LQIUDUHGV\VWHPDQGILUH DQGIRUJHWFDSDFLW\DOVRJUHDWO\LPSURYHWKHVXUYLYDELOLW\RI-DYHOLQJXQQHUVDVZHOODVSURYLGLQJOLPLWHGDQWLDLUFUDIW
DELOLW\DJDLQVW VORZ ORZIO\LQJDLUFUDIWOLNHKHOLFRSWHUV7KHPLVVLOH¶VQRUPDO DWWDFNPRGHLVWRSGRZQLQZKLFK LWDWWDFNVWKHWKLQO\ DUPRUHG
URRIRIDQDUPRUHGYHKLFOHEXWFDQEHVZLWFKHGWRDGLUHFWWDUJHWLQJDVVDXOWPRGHJRRGIRUDWWDFNLQJWKHVLGHVRIDUPRUHGYHKLFOHVZKHQD
WRS GRZQDWWDFN LV XQOLNHO\ WRVXFFHHG WRGRWKHWDUJHW¶VSRVLWLRQIRUDWWDFNLQJDWDUJHW KLGGHQXQGHU D EULGJHIRUH[DPSOHDVZHOO DV IRU
DWWDFNLQJ IRUWLILHG RU UHLQIRUFHG VWUXFWXUHV )LQDOO\ WKH ZHDSRQ KDV D ³VRIW ODXQFK´ VLJQDWXUH SURGXFLQJ ORZHU RYHUSUHVVXUH DQG EDFNEODVW
OHYHOVWKDQLWVSUHGHFHVVRUPDNLQJLWPRUHLGHDOIRUXVHLQHQFORVHGVSDFHVOLNHILULQJIURPDQXSSHUVWRU\ZLQGRZLQ0287RSHUDWLRQV/LNH
YLUWXDOO\ DOO PDQSRUWDEOH JURXQG DWWDFN URFNHW DQG PLVVLOH V\VWHPV PDQXIDFWXUHG LQ WKH ODVW  \HDUV RU VR WKH -DYHOLQ LV EDVHG RQ D
GLVSRVDEOHVWRUDJHODXQFK WXEHFRQWDLQLQJWKH PLVVLOH FRPELQHG ZLWKD GHWDFKDEOHUHXVDEOHWDUJHWLQJV\VWHP 7KLV WDUJHWLQJV\VWHPWKH
&RPPDQG /DXQFK 8QLW &/8 LQWHJUDWHV GD\ VLJKWV DQG D OLJKWZHLJKW )/,5W\SH SDVVLYH ,5 QLJKW VLJKW ZLWK D SRZHU V\VWHP EDVHG RQ
GLVSRVDEOHEDWWHULHVLQWRDKDQGKHOGVXUYHLOODQFHXQLWDVZHOODVWKHWDUJHWLQJV\VWHPPLVVLOHWHVWDQGGDPDJHDVVHVVPHQWV\VWHPIRUWKH
-DYHOLQ2QFHDWDUJHWLVDFTXLUHGWKHPLVVLOH¶VRZQLQIUDUHGIRFDOSODQHDUUD\DQGRQERDUGSURFHVVRUDOORZ LWWRWUDFNDPRYLQJWDUJHWDQG
DGMXVWLWVFRXUVHWRVWULNHZLWKLWV+($7ZDUKHDGSHQHWUDWLQJVRPHPPRI5+$DUPRUSODWH
7KH-DYHOLQZHLJKVLQDWDKHIW\OEVZLWKWKHPDMRUFRPSODLQWIRUWKHZHDSRQEHLQJWKHVOLQJ,WLVVOXQJGLDJRQDOO\DWWKHEDFNRI
WKH ZDLVWZKHUHLW EDQJV LQWRWKH VROGLHU¶VOHJVDQGJUHDWO\ KLQGHUV IRRWPRELOLW\1RUPDOO\D -DYHOLQJXQQHU\ WHDP QHHGVWR XVH DQ$7$&
$OO7HUUDLQ$OOSXUSRVH&DUWWRKDXODURXQGHQRXJK-DYHOLQURXQGVWRDOORZPXOWLILUHFDSDELOLW\
#+%-
&\EHUWKULOOHU
(IIHFW :HLJKW :HLJKW
5DWHRI 5DQJH (PSW\ /RDGHG
:HDSRQ 7\SH $&& &RQ $Y &DOLEHU '0 $PPR )LUH 5HO PHWHUV NJ NJ &RVW
3(1
-DYHOLQ$7*0 +9<  1 0    95    .
GP
6SHFLDO5XOHV

'6\VWHP
'DPDJH 5DQJH 5DWHRI 3XUFKDVH
:HDSRQ 'DPDJH &ULWLFDO 7\SH ,QFUHPHQW )LUH 0DJ 6L]H :HLJKW '& 5HVWULFWLRQ
3(1
-DYHOLQ$7*0 G  ILUH  66  /UJ OE  0LO
¶
6SHFLDO5XOHV

)8'*(
:HDSRQ 6KRWV 5DWHRI)LUH 5DQJH $FF\ 'PJ &RVW 1RWHV
-DYHOLQ$7*0  66 6XSHUE 6XSHUE  . *RRG3HQHWUDWLRQ
6SHFLDO5XOHV

$FWLRQ
675 0D[
:HDSRQ 'PJ 7\SH $FF 5PRG 5R) $PP :W &RVW 1RWHV
0LQ 5QJ
G
-DYHOLQ$7*0         

6SHFLDO5XOHV
 Q%"-$+2JQ
212JQ[
7KH RULJLQDO $XWRPDW .DODVKQLNRYD ULIOH ZDV
:HDSRQ $.
GHYHORSHGLQWKHGD\VQHDUDQGDIWHUWKHHQGRI:RUOG:DU
0DQXIDFWXUHU .DODVKQLNRY <HDU 
,, LQ HXURSH  7KH ULIOH EHJDQ DV D JDV RSHUDWHG
VHPLDXWRPDWLF FDUELQH GHYHORSHG LQ  E\ 0LNKDLO 1DWLRQ 5XVVLD
.DODVKQLNRY DIWHU KH ZDV WUDQVIHUUHG WR ,]K0DVK DIWHU &DOLEHU [PP%ORF 0DJV 
EHLQJ KRVSLWDOL]HG IRU D ZRXQG  7KH GHVLJQ ZDV UHILQHG $FFXUDF\ *URXS FP 02$
WKURXJK  DQG  EHIRUH LW ZDV VXEPLWWHG IRU WULDOV .LOO
7KHZHDSRQZDVUHGHVLJQHGLQIRUDVHFRQGVHULHVRI 9HORFLW\ PV (QHUJ\ -
WULDOV DQG WKH 6RYLHW $UP\ DGRSWHG WKH ULIOH LQ  DORQJ :HLJKW (PSW\ NJ 52) 66 
ZLWK WKH $.6 DQG HQWHUHG VHUYLFH LQ  DIWHU ILHOG /RDGHG NJ 0% 
WULDOV DQG PLQRU PRGLILFDWLRQV 'HVLJQ RI WKH ZHDSRQ ZDV /HQJWK PP %XUVW 
E\QRPHDQVDVLPSOHWDVNZLWKH[SHULPHQWDOYDULDWLRQV 5DQJH (IIHFW P $XWR 
RIWKHZHDSRQSURGXFHGEHWZHHQDQGLWVDGRSWLRQLQ 0D[ P &\FOLF 
 2QFH  UROOHG DURXQG WKH $. EHFDPH WKH ULIOH 1RWHV
WKDW UHYROXWLRQL]HG WKH ZRUOG VROG WR RYHU  QDWLRQV DQG
PDQXIDFWXUHG E\ DW OHDVW D GR]HQ %\ WKH PRVW UHFHQW :HDSRQ $.6
HVWLPDWHV WKHUH PD\ EH DV PDQ\ DV RYHU  PLOOLRQ 0DQXIDFWXUHU .DODVKQLNRY <HDU 
FRSLHV RI WKH ZHDSRQ DURXQG WKH ZRUOG PDNLQJ LW VR
1DWLRQ 5XVVLD
FRPPRQWKDWLQVRPHDUHDVRI$IULFD\RXFDQEX\RQHRQ
&DOLEHU [PP%ORF 0DJV 
WKHVWHHWVIRUDVOLWWOHDVWR86',QVRPHDUHDVRI
WKH0LGGOH(DVWSDUWLFXODUO\LQ,UDTDFUDWHRIVL[QHZ$. $FFXUDF\ *URXS FP 02$
V FDQ EH ERXJKW IRU  )RFXVHG RQ UHOLDELOLW\ DQG .LOO
VLPSOLFLW\ DQG LJQRULQJ HUJRQRPLFV DQG H[WHQGHG 9HORFLW\ PV (QHUJ\ -
DFFXUDF\ WKH ZHDSRQ ZDV DOPRVW SHUIHFW IRU PDVV :HLJKW (PSW\ NJ 52) 66 
SURGXFWLRQDQGDPXVLQJO\LVUHIHUUHGWRDVWKHEHVWZHDSRQ /RDGHG NJ 0% 
HYHUGHVLJQHGIRUXVHLQ:RUOG:DU7ZR /HQJWK PP %XUVW 
7KH $. ZDV WKH LQIDQWU\PDQ
V ZHDSRQ 5DQJH (IIHFW P $XWR 
RXWILWWHG ZLWK D IL[HG ZRRGHQ VWRFN 7KH $.6 ZLWK LWV 0D[ P &\FOLF 
IROGLQJPHWDOVWRFNDQGODFNLQJDWRRONLWZDVGHVLJQHGIRU 1RWHV
XVHLQLWLDOO\E\SDUDWURRSVEXWZDVDOVRUHOHJDWHGWRDUPRU
FUHZV  $VLGH IURP WKHVH WZR GLIIHUHQFHV WKH WZR ULIOHV :HDSRQ $.0
ZHUH RWKHUZLVH LGHQWLFDO 7KH HDUO\ ZHDSRQV KDG QR 0DQXIDFWXUHU .DODVKQLNRY <HDU 
ED\RQHWWHVWKRXJKD ED\RQHWWHNLWZDVODWHULQWURGXFHGIRU 1DWLRQ 5XVVLD
WKH $. %RWK ULIOHV FDQ EH RXWILWWHG ZLWK D *3 &DOLEHU [PP%ORF 0DJV 
JUHQDGH ODXQFKHU DV ZHOO DV D SDVVLYH LPDJH LQWHQVLILHU
$FFXUDF\ *URXS FP 02$
QLJKWVLJKW6LJKWVHWWLQJV IRU ERWKULIOHV UDQJHGIURP  WR
.LOO
PHWHUV
7KHKDOOPDUNRIWKHVHWZRULIOHVZDVWKHTXDOLW\RI 9HORFLW\ PV (QHUJ\ -
WKH GHVLJQ 7KH\ FRXOG EH FRPSOHWHO\ LPPHUVHG LQ ZDWHU :HLJKW (PSW\ NJ 52) 66 
DQG PXG DQG IXQFWLRQ QRUPDOO\ LPPHGLDWHO\ XSRQ /RDGHG NJ 0% 
ZLWKGUDZDOIURPWKHPXFN$GGLWLRQDOO\WKHLU IXOO\ FKURPHG /HQJWK PP %XUVW 
EDUUHOV DOORZHG ERWK RSHUDWLRQ LQ WKH IUHH]LQJ FROG RI D 5DQJH (IIHFW P $XWR 
5XVVLDQ ZLQWHU DV ZHOO DV RSHUDELOLW\ DIWHU ORQJ WHUP 0D[ P &\FOLF 
VWRUDJH WR WKH SRLQW WKDW WKH ZHDSRQ EHJDQ WR UXVW 1RWHV
+RZHYHU WKH $. ZDVQ
W ZLWKRXW LWV GUDZEDFNV 7KH
JUHDWHVWSUREOHPLVWKHORZPX]]OHYHORFLW\RILWVUHODWLYHO\ :HDSRQ $.06
KHDY\ EXOOHW PDNLQJ LW GLIILFXOW WR DFFXUDWHO\ ILUH EH\RQG 0DQXIDFWXUHU .DODVKQLNRY <HDU 
 PHWHUV 7KH EDUUHO LV DOVR SURQH WR UDSLG RYHUKHDWLQJ 1DWLRQ 5XVVLD
ZLWK VXVWDLQHG ILUH $W WKH OHDVW WKH ZHDSRQ EHFRPHV &DOLEHU [PP%ORF 0DJV 
GLIILFXOW WR KROG DQG FDQ HYHQ H[SHULHQFH FRRNRII LQ WKH $FFXUDF\ *URXS FP 02$
FKDPEHU RI D QHZO\ FKDPEHUHG URXQG 7KH ILQDO VHULRXV
.LOO
SUREOHP LV WKH H[SRVHG JDV F\OLQGHU ,I GHQWHG EDGO\
9HORFLW\ PV (QHUJ\ -
HQRXJK LW FDQ FDXVH FRQVWDQW ZHDSRQ PDOIXQFWLRQV 7KH
:HLJKW (PSW\  NJ 52) 66 
ZHDSRQ KDVRQHILQDOSUREOHPDUDWKHUPLQRURQHDWWKDW
/RDGHG NJ 0% 
:KHQ UHORDGHG WKH $. KDV WR EH UHFKDUJHG RU UHFRFNHG
XQOLNH PRVW RWKHU DVVDXOW ULIOHV ZKLFK ORFN WKH EROW RSHQ /HQJWK PP %XUVW 
ZKHQ WKH\ ILUH WKHLU ODVW URXQG $GGLWLRQDOO\ WKH FRFNLQJ 5DQJH (IIHFW P $XWR 
KDQGOH LV PLOOHG DV SDUW RI WKH EROW FDUULHUPHDQLQJ WKDW LW 0D[ P &\FOLF 
UHFLSURFDWHVZLWKWKHEROWZKHQWKHZHDSRQILUHV 1RWHV
 ZDV WKH ILUVW \HDU WR VHH VLJQLILFDQW
PRGLILFDWLRQRIWKHZHDSRQVZLWFKLQJIURPWKHFRPELQDWLRQVWDPSHGPLOOHGSDUWVRIWKHRULJLQDO$.WRDFRPSOHWHO\PLOOHGUHFHLYHUDVFRVW
FXWWLQJPHDVXUHVWRPDNHWKHULIOHPRUHVXLWDEOHIRUWKHLQWHUQDWLRQDODUPVPDUNHW5HYROXWLRQDULHVGRQ
WKDYHQHDUO\DVPXFKFDVKIRUWKHLU
JXQVDVWKHJRYHUQPHQWVWKH\RSSRVH
7KH$.ZDVWKHSULPDU\LQIDQWU\ZHDSRQRIWKH6RYLHW$UP\IRUPWRZKHQWKHPLOLWDU\EHJDQLWVUHSODFHPHQWZLWKWKH
$.07KH$.0LVWKH$XWRPDW.DODVKQLNRYD0RGHUQL]LURYDQQ\MRU.DODVKQLNRY$XWRPDWLF0RGHUQL]HGDQXSGDWHGGHVLJQIRUWKH$.7KH
NH\FKDQJHVIRUWKLVPRGHOZDVWKHVZLWFKWRDFRPSOHWHO\VWDPSHGUHFHLYHUUDWKHUWKDQWKHPLOOHGVWDPSHGFRPELQDWLRQRIUHFHLYHUVXVHGIRU
WKH$.DQG$.62WKHULPSURYHPHQWVLQFOXGHGWKHDGGLWLRQRIDKDPPHUUHOHDVHGHOD\PHFKDQLVPRIWHQHUURQHRXVO\PLVLGHQWLILHGDV
D UDWH UHGXFWLRQ GHYLFH UHGHLJQHG EXWWVWRFN DQG SLVWRO JULS DQG D UHPRYDEOH PX]]OH IOLS FRPSHQVDWRU 7KH UHGHVLJQHG VWRFN DQG JULSV
ZHUHQ
W VLPSO\ UHVKDSHG EXW WKH ZRRG ZDV DOVR UHSODFHG ZLWK SODVWLF IRUPV ZHLJKWHG ZLWK D JODVV ILOO 7KH VLJKWV ZHUH DOVR LPSURYHG ZLWK
VHWWLQJV IRUWR PHWHUV+RZHYHUWKH$.0VWLOO KDVWKH UDQJHSUREOHPVRIWKH$.PDNLQJWKH ZHDSRQYHU\LQHIIHFWLYH SDVW
PHWHUV 7KH ODVWPDMRU LPSURYHPHQWV ZHUHWKH DGGLWLRQ RI D VWDQGDUGPXOWLSXUSRVH ED\RQHWWH FRPSOHWH ZLWK D ZLUHFXWWHU VKHDWK DQG WKH
3%61RLVHOHVV)LULQJ'HYLFHDVLOHQFHUDQGWKHQHFHVVDU\VXEVRQLFDPPXQLWLRQWRXVHZLWKWKH3%6
,QWKH6RYLHW8QLRQRIILFLDOO\DGRSWHGWKHPPURXQGDVLWVQHZVPDOODUPVPXQLWLRQDQG UHSODFHGWKH$.0ZLWKWKH$.
DVWKHSULPDU\LQIDQWU\ZHDSRQ+RZHYHUWKH$0+UHPDLQVLQVHUYLFHZLWKWKH5XVVLDQPLOLWDU\WRWKLVGD\$IWHULWUHPDLQHGWKHSULPDU\
Q%"-$+2JQ
212JQ[
ZHDSRQ RI QRQLQIDQWU\ IRUFHV DQG DIWHU WKH SRRU SHUIRUPDQFH RI WKH PP URXQG LQ YDULRXV FRQIOLFWV WKURXJK WKH 
V DQG 
V
SDUWLFXODUO\LQ$IJKDQLVWDQDQG&KHFKQ\DVSHFLDOIRUFHVWURRSVRIWKHDUP\SROLFHDQG,QWHUQDO$IIDLUV0LQLVWU\KDYHJRQHEDFNWRXVLQJWKH
$.0DQGLWVPRUHSRZHUIXODQGOHWKDOPPURXQG
$ORQJ ZLWK 6RYLHW PDQXIDFWXUH WKH $. DQG $.0 ZHUH OLFHQVHG IRU PDQXIDFWXUH LQ %XOJDULD &KLQD (DVW *HUPDQ\ (J\SW
)LQODQG +XQJDU\,UDT 1RUWK.RUHD5RPDQLDDQG<XJRVODYLD&XUUHQWO\RQO\5XVVLD
V,]K0DVKLVWKHRQO\ UHPDLQLQJ PDQXIDFWXUHURI WKH
ZHDSRQIRUPLOLWDU\XVHLQLWVODWHVWLQFDUQDWLRQWKH$.$ZLGHDUUD\RIVHPLDXWRPDWLFFLYLOLDQYHUVLRQVDUHPDQXIDFWXUHGE\DQXPEHURI
FRXQWULHVLQFOXGLQJ5XVVLD&KLQD%XOJDULD5RPDQLDDQGRWKHUV
7KHSULPDU\PDJD]LQHIRUWKH$.DQG $.0DUHVWDPSHGVWHHOURXQGER[PDJD]LQHV7KHVHPDJD]LQHVZKLOHUREXVWDUHDOVR
DW\SLFDOO\ KHDY\ IRU WKHLU FDLOEHU DQG FDSDFLW\ 2QO\ ZLWK WKH DGRSWLRQ RI WKH $. DQG LWV SODVWLF PDJD]LQHV GLG WKH 6RYLHW PLOLWDU\ EHJLQ
SURFXULQJ [PP PDJD]LQHV DOVR PDGH RI OLJKWZHLJKW SODVWLFV  7KH EXON RI WKHVH SODVWLF PDJD]LQHV ZHUH WKH WUDGHPDUN UHGGLVK RU
RUDQJLVKFRORUWKRXJKDOLPLWHGQXPEHUZHUHSURGXFHGRIWUDQVSDUHQWSRO\FDUERQDWHV$GGLWLRQDOO\WKH$.DQG$.0FDQXVHWKHURXQG
ER[PDJD]LQHVDQGURXQGGUXPPDJD]LQHVRIWKH53./LJKW0DFKLQH*XQ7KHUHZHUHDOVRWZRKLJKFDSDFLW\PDJD]LQHVSURGXFHGIRUWKH
$.)LUVWZDVWKHIRXUFROXPQURXQGDUFPDJD]LQHZLWKDURZIORRUGHOWDDUUDQJHUDQGWZRURZIROORZHU7KHVHPDJD]LQHVZHUHKHDY\
DWNJXQORDGHGDQGFRXOGPDNHWKHULIOHFXPEHUVRPHWRILUH+RZHYHUDVEXON\DVWKHVHPDJD]LQHVVHHPHGLWZDVQRWKLQJFRPSDUHGWR
WKHURXQGKLJKFDSDFLW\VHPLURXQGPDJD]LQHVPDGHIRUWKHULIOH7KHVHPDJD]LQHVXVHGDGRXEOHURZFKHFNHUERDUGDUUDQJHPHQWDQG
ZHUH VLPSO\ DQ H[WHQVLRQ RI WKH URXQG ER[ GHVLJQ 7R ORDG WKLV PDJD]LQH RQH ZHQW WKURXJK D SURFHVV GHILQLWHO\ QRW VXLWHG IRU WKH
EDWWOHILHOG )LUVW RQ WKH ERWWRP RI WKH PDJD]LQH WKHUH LV D VWHHO ORRS 7KLV LV VOLSSHG RYHU WKH HQG RI WKH ULIOH EDUUHO 7KH RWKHU HQG RI WKH
PDJD]LQHLVWKHQLQVHUWHGLQWRWKHULIOH
VPDJD]LQHJXLGHVDQGODWFKHG&RFNWKHULIOHDQGHQMR\XSWRVHFRQGVRIVXVWDLQHGILUHRUDPLQXWH
IXOORIEXUVWV7KHVHURXQGPDJVDUHDKHIW\NJLQZHLJKWDQGDOPRVWDKDOIPHWHUORQJ
Q%"-$+2JQ
212JQ[
Q%"-$+2JQ
212JQ[
&\EHUWKULOOHU
(IIHFW :HLJKW :HLJKW
5DWHRI 5DQJH (PSW\ /RDGHG
:HDSRQ 7\SH $&& &RQ $Y &DOLEHU '0 $PPR )LUH 5HO PHWHUV NJ NJ &RVW
$. $5  7 0 %ORF   >66@ 95    
$.6 $5  7 0 %ORF   >$@>&@ 95    
$.0 $5  7 0 %ORF   >66@ 95    
$.06 $5  7 0 %ORF   >$@>&@ 95    
PP
*3*UHQDGH/DXQFKHU $&&  - 0    95    
/9*
92*)UDJPHQWLQJ
   0 'PU    95    
*UHQDGH
92*3³)URJ´%RXQGLQJ
   0 'PU    95    
)UDJPHQWLQJ*UHQDGH
*3$PPR92*,PSDFWGHWRQDWLRQIUDJPHQWDWLRQJUHQDGHPHWHUEODVWUDGLXVZHLJKVNJ92*3ERXQGLQJIUDJPHQWDWLRQ
6SHFLDO5XOHV )URJDLUEXUVWDWDOWLWXGHRIWRFPPHWHUEODVWUDGLXV%RWKURXQGVGHWRQDWHYLDVHOIGHVWUXFWVHFRQGVDIWHUILULQJLIWKH\DUHQ
W
WULJJHUHGRWKHUZLVH

'6\VWHP
'DPDJH 5DQJH 5DWHRI 3XUFKDVH
:HDSRQ 'DPDJH &ULWLFDO 7\SH ,QFUHPHQW )LUH 0DJ 6L]H :HLJKW '& 5HVWULFWLRQ
$. G  EDOOLVWLF  6$$  /UJ OEV  5HV
$.6 G  EDOOLVWLF  6$$  /UJ OEV  5HV
$.0 G  EDOOLVWLF  6$$  /UJ OEV  5HV
$.06 G  EDOOLVWLF  6$$  /UJ OEV  5HV
*3*UHQDGH/DXQFKHU     66  6P OEV  0LO
GP
92*)UDJPHQWLQJ*UHQDGH  6ODVKLQJ    6P OE  0LO
U
92*3³)URJ´%RXQGLQJ)UDJPHQWLQJ GP
 6ODVKLQJ    6P OE  0LO
*UHQDGH U
*3 $PPR 92* ,PSDFW GHWRQDWLRQ IUDJPHQWDWLRQ JUHQDGH  PHWHU EODVW UDGLXV ZHLJKV  NJ 92*3
6SHFLDO5XOHV ERXQGLQJIUDJPHQWDWLRQ)URJDLUEXUVWDWDOWLWXGHRIWRFPPHWHUEODVWUDGLXV%RWKURXQGVGHWRQDWHYLDVHOI
GHVWUXFWVHFRQGVDIWHUILULQJLIWKH\DUHQ
WWULJJHUHGRWKHUZLVH

)8'*(
:HDSRQ 6KRWV 5DWHRI)LUH 5DQJH $FF\ 'PJ &RVW 1RWHV
$.  6$$& 0HGLRFUH 0HGLRFUH  
$.6  6$$& 0HGLRFUH 0HGLRFUH  
$.0  6$$& 0HGLRFUH 0HGLRFUH  
$.06  6$$& 0HGLRFUH 0HGLRFUH  
*3*UHQDGH/DXQFKHU  66 )DLU 0HGLRFUH  
92*)UDJPHQWLQJ*UHQDGH      
92*3³)URJ´%RXQGLQJ     

)UDJPHQWLQJ*UHQDGH
6SHFLDO5XOHV *3 $PPR 92* ,PSDFW GHWRQDWLRQ IUDJPHQWDWLRQ JUHQDGH  PHWHU EODVW UDGLXV ZHLJKV  NJ 92*3 ERXQGLQJ
IUDJPHQWDWLRQ)URJDLUEXUVWDWDOWLWXGHRIWRFPPHWHUEODVWUDGLXV%RWKURXQGVGHWRQDWHYLDVHOIGHVWUXFWVHFRQGV
DIWHUILULQJLIWKH\DUHQ
WWULJJHUHGRWKHUZLVH

$FWLRQ
675 0D[
:HDSRQ 'PJ 7\SH $FF 5PRG 5R) $PP :W &RVW 1RWHV
0LQ 5QJ
$. G 3/        
$.6 G 3/        
$.0 G 3/        
$.06 G 3/        
*3*UHQDGH/DXQFKHU       U   
92*)UDJPHQWLQJ*UHQDGH G 3/        
92*3³)URJ´%RXQGLQJ
G 3/        
)UDJPHQWLQJ*UHQDGH
6SHFLDO5XOHV *3 $PPR 92* ,PSDFW GHWRQDWLRQ IUDJPHQWDWLRQ JUHQDGH  PHWHU EODVW UDGLXV ZHLJKV  NJ 92*3 ERXQGLQJ
IUDJPHQWDWLRQ)URJDLUEXUVWDWDOWLWXGHRIWRFPPHWHUEODVWUDGLXV%RWKURXQGVGHWRQDWHYLDVHOIGHVWUXFWVHFRQGV
DIWHUILULQJLIWKH\DUHQ
WWULJJHUHGRWKHUZLVH*UHQDGHODXQFKHUFDQEHILUHGURXJKO\RQFHSHUVHFRQGVRURQFHSHUURXQGV
U
 [ 2JD
7KH0$7LVWKH$UP\
VSULPDU\OLJKWDQWL
:HDSRQ 0$7
WDQN ZHDSRQ 7KH 0 $7 LV D UHFRLOOHVV ULIOH XVHG
))92UGLQDQFH6DDE
SULPDULO\ E\ ,QIDQWU\ )RUFHV IRU HQJDJHPHQW DQG GHIHDW
0DQXIDFWXUHU %RIRUV$OOLDQW <HDU 
RI OLJKW DUPRU 7KH UHFRLOOHVV ULIOH GHVLJQ SHUPLWV
7HFKV\VWHPV
DFFXUDWHGHOLYHU\RIDQPP+LJK([SORVLYH$QWL$UPRU
ZDUKHDGZLWKQHJOLJLEOHUHFRLO 1DWLRQ 6ZHGHQ8QLWHG6WDWHV
7KH0$7LVDOLJKWZHLJKWVHOIFRQWDLQHG &DOLEHU PPURFNHW 0DJV VLQJOHVKRW
DQWLDUPRU ZHDSRQ FRQVLVWLQJ RI D IUHHIOLJKW ILQ $FFXUDF\ *URXS 02$
VWDELOL]HG URFNHWW\SH FDUWULGJH SDFNHG LQ DQ .LOO 3HQ PP
H[SHQGDEOH RQHSLHFH ILEHUJODVVZUDSSHG WXEH 7KH 9HORFLW\ PV (QHUJ\
0 $7 LV PDQSRUWDEOH DQG LV ILUHG IURP WKH ULJKW :HLJKW (PSW\ 52) 66 
VKRXOGHU RQO\ 7KH ODXQFKHU LV ZDWHUWLJKW IRU HDVH RI /RDGHG NJ 0% 
WUDQVSRUWDWLRQ DQGVWRUDJH 8QOLNH WKH 0VHULHV /$: /HQJWK PP %XUVW 
WKH 0 $7 ODXQFKHU QHHG QRW EH H[WHQGHG EHIRUH 5DQJH (IIHFWLYH P $XWR 
ILULQJ 0D[ P &\FOLF 
7KRXJK WKH 0 $7 FDQ EH HPSOR\HG LQ 1RWHV
OLPLWHGYLVLELOLW\WKHILUHUPXVWEHDEOHWRVHHDQGLGHQWLI\
WKH WDUJHW DQG HVWLPDWH WKH UDQJH WR LW 6XEVHTXHQW WR :HDSRQ 0$7&6
WKH LQLWLDO ILHOGLQJ RI WKH ZHDSRQ D UHXVDEOH QLJKW VLJKW ))92UGLQDQFH6DDE
EUDFNHW ZDV GHYHORSHG DQG ILHOGHG ,W SHUPLWV XWLOL]DWLRQ 0DQXIDFWXUHU %RIRUV$OOLDQW <HDU 
RIVWDQGDUGQLJKWYLVLRQHTXLSPHQW7KHV\VWHP
VWDFWLFDO 7HFKV\VWHPV
HQJDJHPHQWUDQJHLVWRPHWHUVZLWKDQDUPLQJ
1DWLRQ 6ZHGHQ8QLWHG6WDWHV
UDQJH RI  PHWHUV DQG D PD[LPXP UDQJH RI 
&DOLEHU PPURFNHW 0DJV VLQJOHVKRW
PHWHUV ,W KDV EHHQ XVHG LQ PXOWLSOH FRPEDW VLWXDWLRQV
7KH URXQG RI DPPXQLWLRQ LV VHOIFRQWDLQHG LQ D $FFXUDF\ *URXS 02$
GLVSRVDEOH ODXQFK WXEH 7KH V\VWHP ZHLJKV  SRXQGV .LOO 3HQ PP
DQGFDQEHXWLOL]HGHIIHFWLYHO\ZLWKPLQLPDOWUDLQLQJ 9HORFLW\ PV (QHUJ\
2YHU  ZHUH PDQXIDFWXUHG IRU WKH :HLJKW (PSW\ 52) 66 
8QLWHG 6WDWHV EHWZHHQ  DQG  $GGLWLRQDOO\ DQ /RDGHG NJ 0% 
XSJUDGHGYHUVLRQ ZDVHYHQWXDOO\ LQWURGXFHG LQ WKH¶V /HQJWK PP %XUVW 
WKH$7&RQILQHG6SDFHGHVLJQHGWRDOORZWURRSVWRXVH 5DQJH (IIHFWLYH P $XWR 
WKHZHDSRQIURPZLWKLQHQFORVXUHVW\SLFDOO\ORFDWHGLQDQ 0D[ P &\FOLF 
XUEDQ HQYLURQPHQW 7KH $7 &6 XWLOL]HV D GXDO PRWRU 1RWHV
V\VWHP WKH ILUVW WR SURSHO WKH URFNHW VHYHUDO PHWHUV
DZD\ IURP WKH URFNHW EHIRUH WKH PDLQ URFNHW PRWRU
LJQLWHVJUHDWO\UHGXFLQJWKHEDFNEODVWLQHQFORVHGHQYLURQPHQWV$GGLWLRQDOO\WKHZDUKHDGLVXSJUDGHGSHQHWUDWLQJDVPXFKDVPPDQG
EHLQJXVHIXODVDEXQNHUEXVWHUDVZHOO
[ 2JD
&\EHUWKULOOHU
(IIHFW :HLJKW :HLJKW
5DWHRI 5DQJH (PSW\ /RDGHG
:HDSRQ 7\SH $&& &RQ $Y &DOLEHU '0 $PPR )LUH 5HO PHWHUV NJ NJ &RVW
3(1
0$7 +9<  1 0    95    
'P
3(1
0$7&6 +9<  1 0    95    
'P
6SHFLDO5XOHV

'6\VWHP
'DPDJH 5DQJH 5DWHRI 3XUFKDVH
:HDSRQ 'DPDJH &ULWLFDO 7\SH ,QFUHPHQW )LUH 0DJ 6L]H :HLJKW '& 5HVWULFWLRQ
3(1
0$7 G  ILUH    /UJ OE  0LO
¶U
3(1
0$7&6 G  ILUH    /UJ OE  0LO
¶U
6SHFLDO5XOHV

)8'*(
:HDSRQ 6KRWV 5DWHRI)LUH 5DQJH $FF\ 'PJ &RVW 1RWHV
0$7  66 0HGLRFUH )DLU   0HGLRFUHSHQHWUDWLRQ
0$7&6  66 0HGLRFUH )DLU   *RRGSHQHWUDWLRQ
6SHFLDO5XOHV

$FWLRQ
675 0D[
:HDSRQ 'PJ 7\SH $FF 5PRG 5R) $PP :W &RVW 1RWHV
0LQ 5QJ
G
0$7 3/        

G
0$7&6 3/        

6SHFLDO5XOHV 'GDPDJHYDOXHLVQRUPDOVFDOHGDPDJHWKDWDSSOLHVWRPRVWLWHPVVWUXFN7KHYDOXHLQSDUHQWKHVLVLV0HJDVFDOHGDPDJHWKDW
DSSOLHVRQO\SHQHWUDWLQJDYHKLFOHVWUXFWXUHRURWKHULWHPWKDWFDQEHFRQVLGHUHGDUPRUHG
 [2YL[
'HYHORSHGIRUWKH86$UP\WKH0%'0LVD
:HDSRQ 0%XQNHU'HIHDWLQJ0XQLWLRQ
RQHVKRWGLVSRVDEOHYHUVLRQRIWKH60$:GHSOR\HGE\WKH
0DQXIDFWXUHU 7DOOH\'HIHQVH6\VWHPV <HDU 
860DULQHV,QLWLDOO\LWZDVEHLQJGHYHORSHGDVDVHSDUDWH
SURJUDP EXW SURFXUHUV QRWLFHG WRR PDQ\ VLPLODULWLHV 1DWLRQ 8QLWHG6WDWHV
EHWZHHQWKH60$:DQG%'0SURJUDPV7KHHQGUHVXOWLV &DOLEHU PPURFNHW 0DJV VLQJOHVKRW
D 60$: GXDO PRGH URFNHW EHLQJ ILUHG IURP D GLVSRVDEOH $FFXUDF\ *URXS 02$
ODXQFKHUV\VWHPVLPLODUWRWKDWRIWKH0$77KHUHVXOW .LOO 3HQ PP
ZDV D ZHDSRQ V\VWHP WKH $UP\ FRXOG XVH DJDLQVW ERWK 9HORFLW\ PV (QHUJ\
FRQFUHWH VWUXFWXUHV DQG OLJKWO\ DUPRUHGYHKLFOHV DWUDQJHV :HLJKW (PSW\ 52) 66 
RI  WR  PHWHUV (QWHUHG LQWR LQYHQWRULHV LQ  WKH /RDGHG NJ 0% 
$UP\ SURFXUHG D WRWDO RI  RI WKHVH ZHDSRQV /HQJWK PP %XUVW 
'HYHORSPHQWRIWKH%'0VWDUWHGDIWHU'HVHUW6WRUPZKHUH 5DQJH (IIHFWLYH P $XWR 
WKH0DULQHVORDQHGWRWKH$UP\60$:ODXQFKHUVDQG 0D[ P &\FOLF 
URXQGV 1RWHV
7KRXJK &RQJUHVV DOORZHG WKH $UP\ WR REWDLQ
 %'0V WKLV VXSSO\ LV DQ LQWHULPVWRFN RQO\ DQG ZLOO QRW EH UHSOHQLVKHG DV WKH PXQLWLRQV DUH XVHG ,W ZDV GHFLGHG WKDW WKH %'0 DQG
60$: ZHUH WRR VLPLODU LQ QDWXUH DQG WKH 0DULQHV DQG $UP\ ZLOO KDYH WR FRQYHUJH WKH WZR ZHDSRQV LQWR D MRLQW V\VWHP XWLOL]LQJ WKH EDVLF
URFNHWDQGODXQFKHUWHFKQRORJ\GHYHORSHGIRUWKH0DULQHVZLWKWKHZDUKHDGDQGIXVLQJWHFKQRORJ\GHYHORSHGIRUWKH$UP\:KLOHWKH8QLWHG
6WDWHV ZLOO QRW EH SURFXULQJ DQ\ IXUWKHU TXDQWLWLHV RI WKH 0 LW LV QRW XQUHDVRQDEOH WR DVVXPH WKH PDQXIDFWXUHU RIIHUV WKHP IRU VDOH WR
IULHQGO\QDWLRQV7KHPDQXIDFWXUHU7DOOH\'HIHQVH6\VWHPVLVQRZRIIHULQJWKH60$:'&6D60$:'LQWHJUDWLQJWKHSURSXOVLRQV\VWHPRI
WKHQHZO\ILHOGHG60$:/($3XVHGE\WKH0DULQHV1R$UP\FRQWUDFWIRUWKHZHDSRQKDVEHHQRIIHUHGDVRI\HWKRZHYHU
7KH ZHDSRQ
V IXOO GHVLJQDWLRQ LV 0 %'0 60$:' 0RGHO  %XQNHU 'HIHDWLQJ 0XQLWLRQ 6KRXOGHUODXQFKHG 0XOWLSXUSRVH
$VVDXOW:HDSRQ 'LVSRVDEOH
[2YL[
&\EHUWKULOOHU
(IIHFW :HLJKW :HLJKW
5DWHRI 5DQJH (PSW\ /RDGHG
:HDSRQ 7\SH $&& &RQ $Y &DOLEHU '0 $PPR )LUH 5HO PHWHUV NJ NJ &RVW
3(1
0%'060$:' +9<  1 02    95    
'P
6SHFLDO5XOHV

'6\VWHP
'DPDJH 5DQJH 5DWHRI 3XUFKDVH
:HDSRQ 'DPDJH &ULWLFDO 7\SH ,QFUHPHQW )LUH 0DJ 6L]H :HLJKW '& 5HVWULFWLRQ
3(1 ILUH
0$7     /UJ OE  0LO
G¶ VODVKLQJ
6SHFLDO5XOHV

)8'*(
:HDSRQ 6KRWV 5DWHRI)LUH 5DQJH $FF\ 'PJ &RVW 1RWHV
0$7  66 )DLU )DLU   0HGLRFUH3HQHWUDWLRQ
6SHFLDO5XOHV

$FWLRQ
675 0D[
:HDSRQ 'PJ 7\SH $FF 5PRG 5R) $PP :W &RVW 1RWHV
0LQ 5QJ
G
0$7 3/        

6SHFLDO5XOHV 'GDPDJHYDOXHLVQRUPDOVFDOHGDPDJHWKDWDSSOLHVWRPRVWLWHPVVWUXFN7KHYDOXHLQSDUHQWKHVLVLV 0HJDVFDOHGDPDJHWKDW
DSSOLHVRQO\SHQHWUDWLQJDYHKLFOHVWUXFWXUHRURWKHULWHPWKDWFDQEHFRQVLGHUHGDUPRUHG
 [ J
7KH 0 KDV EHHQ WKH ULIOH RI WKH 86 $UP\
:HDSRQ 0$
VLQFHZKHQLW ZDVDGRSWHGDVDQLQWHULPZHDSRQ WR
0DQXIDFWXUHU <HDU 
ILOO PLOLWDU\ QHHGV ZKLOH WKH 0 ZDV F\FOHG RXW RI VHUYLFH
DQG WKH 63,:ILQLVKHG GHYHORSPHQW 1HHGOHVVWRVD\ WKH 1DWLRQ )UDQFH*HUPDQ\8.
63,:QHYHUILQLVKHGGHYHORSPHQWDQGWKH0KDVEHHQ &DOLEHU PP0LVVLOH 0DJV 
VHUYLQJ LQ LWV SODFH HYHU VLQFH :KLOH WKH FXUUHQW JHQHUDO $FFXUDF\ *URXS FP 02$
LVVXHPRGHO RI WKH ULIOH WKH 0$ LV FRQVLGHUHG RQH RI .LOO 3HQ
WKHZRUOG
VEHVWDVVDXOWULIOHVLW
VSDVWLVQ
WDQ\ZKHUHQHDU 9HORFLW\ PV (QHUJ\
DVVWHOODU :HLJKW (PSW\ NJ 52) 66 
7KH FXUUHQW PRGHO LV WKH 0$ VSHFLILFDOO\ /RDGHG NJ 0% 
RSWLPL]HG IRU WKH 66 1$72 FDUWULGJH ,Q  1$72 /HQJWK PP %XUVW 
DGRSWHGWKH66DVLWVQHZFDUWULGJHWDNLQJDGYDQWDJH 5DQJH (IIHFWLYH P $XWR 
RI WKH LPSURYHG ORQJ UDQJH SHUIRUPDQFH RIIHUHG E\ WKLV 0D[ &\FOLF 
URXQG ZKLFK ZDV RULJLQDOO\ GHYHORSHG VSHFLILFDOO\ IRU WKH 86$UP\SD\VSHUXQLWWKH860DULQHVSD\SHU
1RWHV
0LQLPLPDFKLQHJXQ&ROWGLGQ
WJHWDURXQGWRSURGXFLQJWKH XQLW
PRGLILHG 0$ XQWLO  DQG WKH ULIOH ZDVQ
W DGRSWHG
XQWLOIRUWKH0DULQHVDQGIRUWKH$UP\
7KH 0$ LV D FRPSHWHQW ZHDSRQ ZHLJKLQJ  NJ ORDGHG ZLWK D URXQG PDJD]LQH ZLWK DQ  USP F\FOLF UDWH DQG DQ
HIIHFWLYH UDQJH RXW WR  PHWHUV 7KH IRUHJULS KDQGJXDUG FDQ EH UHPRYHG DQG UHSODFHG ZLWK D PRXQWLQJ UDLO WKDW FDQ PRXQW DQ 0
JUHQDGHODXQFKHURUDQ\RIDQXPEHURIRWKHUDWWDFKPHQWV,WDOVRPDGHDQXPEHURIFKDQJHVWRWKHJXQXQUHODWHGWRWKHDGRSWLRQRIWKH66
URXQG7KHUHDUVLJKWZDVUHSODFHGZLWKDQHZRQHWKDWFRXOGEHDGMXVWHGIRUUDQJHDQGZLQGDJHWKHKDQGJXDUGVZHUHVZLWFKHGIURPWKH
SUHYLRXV WULDQJXODU RQHV WR URXQG RQHV DQG IROORZLQJ WKH $UP\
V DPPXQLWLRQ FRQVHUYDWLRQ GRFWULQH WKH ZHDSRQV IXOO DXWRPDWLFPRGH ZDV
UHSODFHGZLWKDWKUHHURXQGEXUVWPRGH
$ORQJ ZLWK WKH 86 PLOLWDU\ WKH 0$5 VHH D JUHDW GHDO RI ODZ HQIRUFHPHQW XVH ZLWKLQ WKH 8QLWHG 6WDWHV $IWHU WKH 1RUWK
+ROO\ZRRGVKRRWRXWRQ)HEUXDU\WKH/$3'EHJDQFRUUHFWLQJLWVILUHSRZHUGHILFLHQFLHVE\SURFXULQJVXUSOXV0V7KHLQLWLDOJRDO
ZDVWRSURYLGHRQH0IRUWKHVTXDGFDURIHYHU\ZDWFKFRPPDQGHUZLWKWKHHYHQWXDOJRDORIPRXQWLQJRQHLQWKHWUXQNRIHYHU\VTXDGFDU
$YDVWQXPEHURIRWKHUODZHQIRUFHPHQW DJHQFLHVHPSOR\ERWKPLOLWDU\VXUSOXVIXOO\DXWRPDWLF0VRUVHPLDXWRPDWLF$5ULIOHVLQWKHLU
LQYHQWRULHV7KH0LVDOVRXVHGE\DZLGHYDULHW\RIIRUHLJQPLOLWDU\RUJDQL]DWLRQVPRVWQRWDEOHEHLQJWKH%ULWLVK6SHFLDO$LU6HUYLFHVZKR
SUHIHU WKH ULIOH RYHU WKHLU QDWLRQ
V RZQ 6$ ULIOHV 7KH $5 DQG 0 DUH VR SRSXODU DURXQG WKH ZRUOG WKDW ZLWKLQ WKH 86 DORQH LW LV
PDQXIDFWXUHGE\RYHUDGR]HQGLIIHUHQWFRPSDQLHVLQFOXGLQJ$UPDOLWH%XVKPDVWHU&ROW)10DQXIDFWXULQJ+HVV/HV%DHU2O\PSLF:LOVRQ
&RPEDWDQGD UDQJHRIVPDOOHUPDQXIDFWXUHUVPDQ\RIZKLFKVLPSO\DVVHPEOHWKHLUULIOHVIURPDVVRUWHGFRPSRQHQWVPDQXIDFWXUHGE\WKH
ODUJHU JXQ PDNHUV 0LOLWDU\ JUDGH 0 FORQHV DUH PDQXIDFWXUHG E\ )1 0DQXIDFWXULQJ 'LHPDFR &R RI &DQDGD DQG WKH &KLQHVH VWDWH
ZHDSRQIDFWRULHVRI125,1&2
7KHODWHVWYHUVLRQVRIWKHULIOHWKH0$DQG0$ZHUHDGRSWHGE\WKH86PLOLWDU\LQ+RZHYHUWKHDGRSWLRQKDVQRW
EHHQZLGHVSUHDG7KHVHWZRULIOHVIHDWXUHWKHPDMRU FKDQJH RIDIODW WRSXSSHU UHFHLYHUWRSSHG ZLWK DSLFDWLQQ\UDLOZLWKWKH WUDGLWLRQ0
FDUU\KDQGOHEHFRPLQJDQDFFHVVRU\WKDWDWWDFKHVWRWKDWUDLO7KH0$LVFDSDEOHRIVHPLDXWRPDWLFILUHDQGWKUHHURXQGEXUVWV7KH0
$ PDUNV WKH UHWXUQ RI D IXOO\ DXWRPDWLF 0 UHSODFLQJ WKH EXUVW PRGH ZLWK IXOO DXWRPDWLF PRGH 7KHVH WZR ULIOHV DUH XVHG PDLQO\ E\
62&20DVVRFLDWHGIRUFHV1DY\6($/6$UP\5DQJHUV6SHFLDO)RUFHV$LUERUQH$LU)RUFH3DUDMXPSHUV0DULQH)RUFH5HFRQZKHQWKH\
DUHQ
WHPSOR\LQJDQ0$FDUELQHLQVWHDG
:LWKWKHWHVWLQJRIWKH;06$%5DQG;0/LJKWZHLJKW$VVDXOW5LIOHDVZHOODVWKHH[WHQVLYHDGRSWLRQRIWKH0DQG 0$
FDUELQHV  WKH 0PD\ YHU\ ZHOO EH RQ LWV ODVW OHJV LQ WKH 86 $UP\ :LWK WKH DUP\ UHRUJDQL]LQJ IRUUDSLG GHSOR\PHQW DQG UHWUDLQLQJ IRU
VSHFLDORSHUDWLRQVDQGXUEDQFRPEDWWKHVKRUWHURYHUDOOVL]HDQGOLJKWHUZHLJKWRIWKH;0DQG 0DUHJUHDWEHQHILWVRYHUWKH0$6WLOO
HYHQ WKH 0V DUHWKUHDWHQHG ZLWK D QHZ JHQHUDWLRQRIHUJRQRPLFDOO\ GHVLJQHGULIOHV DQG DFFHVVRULHV 7KH ;0ZDVWKHILUVWULIOH RIWKH
JHQHUDWLRQWKUHHFRPSRQHQWVGHVLJQHGWRUHGXFHWKHLUEXONFRPSDUHGWRDQHTXLYDOHQW0RU00:66LQFHWKHQWKH3$323*UR]D
) DQG RWKHU ULIOHV KDYH MRLQHG WKH ;0 SURYLGLQJ WKH RSWLRQ RI REWDLQLQJ KLJKO\ FRPSHWHQW DQG FRPIRUWDEOH ZHDSRQV UDWKHU WKDQ
LVVXLQJ\HWDQRWKHUFOXPVLO\DFFHVVRUL]HG0RU0
:LWK WKH YDVW DUUD\ RI 0 YDULDQW DYDLODEOH WKH 86 PLOLWDU\ NHHSV RYHU  GLIIHUHQW 0 DQG 0 YDULDQWV LQ LQYHQWRU\ DORQH
ZH
YHFKRVHQWRGHWDLOWKRVHRWKHUYDULDQWVVHSDUDWHO\LQODWHUYROXPHV
,QUHYLHZRIDIWHUDFWLRQUHSRUWVE\WKH860&VRPHVWDUWOLQJIDFWVKDYHFRPHWROLJKWDERXWWKH0$RIWKH860&DUVHQDOVXVHG
LQ,UDT7KHWDNHGRZQSLQVDUHXQLYHUVDOO\IODZHG6DQGZRXOGHQWHUWKHULIOHLQWKHSLQVORWVDQGJULQGGRZQWKHSLQVWRWKHSRLQWRIVQDSSLQJ
MXVWWKURXJKWKHQRUPDOGDLO\MRVWOLQJRIPDUFKLQJ7KHSUREOHPZDVVR EDGWKDWDVLJQLILFDQWQXPEHURIPDULQHVKDGWRKROGWKHLU ZHDSRQV
WRJHWKHU ZLWK HLWKHU ]LS WLHV RU GXFW WDSH $GGLWLRQDOO\ WKH DIWHUDFWLRQ UHSRUW RQ WKH DPEXVK DQG FDSWXUH RI WKH $86$ WK 0DLQWHQDQFH
&RPSDQ\QHDU$Q1DVLUL\DRQ0DUFK LQGLFDWHVWKDWPRVWRIWKHLUZHDSRQVPDOIXQFWLRQHGWRDSRLQWRISHUPDQHQWIDLOXUHGXULQJWKH
PLQXWHILUHILJKWWKDWOHDGWRWKHFDSWXUH
[ J
&\EHUWKULOOHU
(IIHFW :HLJKW :HLJKW
5DWHRI 5DQJH (PSW\ /RDGHG
:HDSRQ 7\SH $&& &RQ $Y &DOLEHU '0 $PPR )LUH 5HO PHWHUV NJ NJ &RVW
>66@
0$ $5  7 0 1   5(    
>%@
6SHFLDO5XOHV

'6\VWHP
'DPDJH 5DQJH 5DWHRI 3XUFKDVH
:HDSRQ 'DPDJH &ULWLFDO 7\SH ,QFUHPHQW )LUH 0DJ 6L]H :HLJKW '& 5HVWULFWLRQ
0$ G  EDOOLVWLF  6$  0HG OE  0LO
6SHFLDO5XOHV

)8'*(
:HDSRQ 6KRWV 5DWHRI)LUH 5DQJH $FF\ 'PJ &RVW 1RWHV
0$  6$% *RRG )DLU  
6SHFLDO5XOHV

$FWLRQ
675 0D[
:HDSRQ 'PJ 7\SH $FF 5PRG 5R) $PP :W &RVW 1RWHV
0LQ 5QJ
0$ G 3/        
6SHFLDO5XOHV
 [J K+*2I%
:KDW" <RXWKRXJKWWKDWZKHQWKH'HSDUWPHQW RI
:HDSRQ 0$6HPLDXWRPDWLF3LVWRO
'HIHQVH DGRSWHG WKH 0 DV WKH VHUYLFH SLVWRO IRU DOO WKH
0DQXIDFWXUHU &ROW <HDU 
VHUYLFHVWKH0$&DOLEHUSLVWROYDQLVKHGIURPWKH
LQYHQWRULHV" :HOO \RX¶UH PRVWO\ ULJKW 7KH 86 1DWLRQ 8QLWHG6WDWHV
JRYHUQPHQW XVHG WR SRVVHVV RYHU RQH PLOOLRQ 0$ &DOLEHU $&3 0DJV 
SLVWROV +RZHYHU VLQFH WKH LQWURGXFWLRQ RI WKH 0 WKH $FFXUDF\ *URXS  FP# P 02$
VWRFNSLOH RI 0$ SLVWROV KDV GZLQGOHG GRZQ WR XQGHU .LOO 3HQ
SLVWROVYLUWXDOO\DOORIZKLFKDUHLQWKHKDQGVRIWKH 9HORFLW\  PV (QHUJ\
860&¶V0DULQH([SHGLWLRQDU\8QLWV :HLJKW (PSW\ NJ 52) 66 
7KH SLVWRO LV D UHFRLO RSHUDWHG PDJD]LQHIHG /RDGHG NJ 0% 
VHPLDXWRPDWLF VLQJOHDFWLRQ GHVLJQ KDQGJXQ WKDW ILUHV D /HQJWK  PP %XUVW 
VLQJOH URXQG HDFK WLPH WKH WULJJHU LV VTXHH]HG RQFH WKH 5DQJH (IIHFWLYH  P $XWR 
KDPPHULVFRFNHGE\SULRUDFWLRQRIWKHVOLGHRUE\WKXPE 0D[ &\FOLF 
7KHSLVWROXWLOL]HVDWKXPEVDIHW\WKDWFDQRQO\EHHQJDJHG 5DQJHDQG$FFXUDF\UHIOHFW86PLOLWDU\LVVXHSLVWROVPRVW
ZKHQ WKH KDPPHU LV FRFNHG ORFNLQJ WKH KDPPHU LQ WKLV RIZKLFKZHUHRULJLQDOO\SURFXUHGRYHU\HDUVDJR $QHZ
1RWHV
RSHQSRVLWLRQZKLOHWKHVDIHW\LVHQJDJHG 0$ZRXOGKDYHDJURXSRIFPDWPHWHUVDQG
$IWHUVHUYLQJ WKH 86 PLOLWDU\ IRU RYHU  \HDUV DQHIIHFWLYHUDQJHRIDERXWPHWHUV
WKHVH SLVWROV DUH ZLGHO\ UHVSHFWHG DV YHU\ UHOLDEOH DQG
KLJKO\ OHWKDO SLVWROV 7KH VLQJOHDFWLRQ GHVLJQ :HDSRQ 0*HQHUDO2IILFHUV3LVWRO
XQIRUWXQDWHO\UHTXLUHVVKRRWHUVWREHYHU\IDPLOLDUDQGZHOO 0DQXIDFWXUHU 5RFN,VODQG$UVHQDO <HDU 
WUDLQHGLQXVHRIWKHSLVWROEHIRUHWKH\DUHDOORZHGWRFDUU\
1DWLRQ 8QLWHG6WDWHV
WKH SLVWRO LQ D UHDG\WRILUH VWDWH URXQG LQ WKH FKDPEHU
&DOLEHU $&3 0DJV 
KDPPHU FRFNHG DQG ORFNHG &RQVHTXHQWO\ VWDQGLQJ
RUGHUVZHUHWKDWWKHSLVWROQRWEHKROVWHUHGZLWKDURXQGLQ $FFXUDF\ *URXS  FP# P 02$
WKH FKDPEHU (YHQ ZLWK WKLV UHVWULFWLRQ GR]HQV RI LQMXULHV .LOO 3HQ
IURPDFFLGHQWDOGLVFKDUJHVZHUHGRFXPHQWHGDQQXDOO\ 9HORFLW\  PV (QHUJ\
7KH RULJLQDO 0 SLVWRO ZDV DGRSWHG E\ WKH :HLJKW (PSW\  NJ 52) 66 
86PLOLWDU\LQIROORZLQJDVHOHFWLRQSURFHVVWKDWZDV /RDGHG  NJ 0% 
LQLWLDWHG E\ WKH 86 $UP\ LQ  $IWHU RYHU  \HDUV LQ /HQJWK  PP %XUVW 
VHUYLFHWKH$UP\PDQGDWHGDQXPEHURILPSURYHPHQWVLQ 5DQJH (IIHFWLYH  P $XWR 
WKH SLVWRO DGRSWLQJ WKH UHYLVHG GHVLJQ DV WKH 0$ LQ 0D[ &\FOLF 
 7KHVH FKDQJHV ZHUH ZLGHU IURQW VLJKW ORQJHU 1RWHV
KDPPHU VSXU VKRUWHU WULJJHU FXUYHG VSULQJ KRXVLQJ
VLPSOLILHG FKHFNHU SDWWHUQ RQ WKHJULSV LQGH[ ILQJHU UHOLHIV :HDSRQ 860&0(862&3LVWRO
EHKLQG WKH WULJJHU DQG D ORQJHU VDIHW\ VZLWFK VSXU 7KH 0DQXIDFWXUHU 860&57(6KRS <HDU 
SLVWRO UHPDLQHG XQFKDQJHG E\ WKH PLOLWDU\ EHWZHHQ  1DWLRQ 8QLWHG6WDWHV
DQGLWVRIILFLDOUHWLUHPHQWLQ &DOLEHU $&3 0DJV 
,QDGGLWLRQWRWKH0$WKHJRYHUQPHQWDOVR
$FFXUDF\ *URXS  FP# P 02$
DGRSWHG WKH 0 *HQHUDO 2IILFHUV 3LVWRO LQ 
.LOO 3HQ
'HYHORSHG E\ WKH 5RFN ,VODQG $UVHQDO WKLV SLVWRO ZDV
EDVHG RQ WKH &ROW &RPEDW &RPPDQGHU SLVWRO DV LW ZDV 9HORFLW\  PV (QHUJ\
DYDLODEOH DW WKDW WLPH 'HVLJQHG DV WKH $UP\¶V JHQHUDO :HLJKW (PSW\  NJ 52) 66 
LVVXH VLGHDUP IRU KLJK UDQNLQJ RIILFHUV DQG WKHLU JHQHUDO /RDGHG  NJ 0% 
VWDII RIILFHUV WKH SLVWRO KDG D EUDVV SODWH LQVHW RQ WKH OHIW /HQJWK  PP %XUVW 
VLGH RI WKH JULS ZKHUH WKH RZQHU¶V QDPH FRXOG EH 5DQJH (IIHFWLYH  P $XWR 
HQJUDYHG 3ULRU WR WKLV JHQHUDO VWDII RIILFHUV KDG EHHQ 0D[ &\FOLF 
LVVXHGWKH0 &ROW3RFNHW+DPPHUOHVV3LVWROZKLFKE\ ,I\RXEXLOG\RXURZQWKHFRVWZLOOOLNHO\EHDERXW
ZHUHZRUQRXWDQGGHVSHUDWHO\QHHGHGUHSODFHPHQW 1RWHV VLQFH\RXGRQ¶WKDYHWKHEXONEX\LQJSRZHURIWKH8QLWHG
7KHODVWPDMRUFKDQJHPDGH WRWKH0$E\ 6WDWHV)HGHUDO*RYHUQPHQW
WKH PLOLWDU\ ZDV DFWXDOO\ GRQH DIWHU WKH 0$ ZDV
RIILFLDOO\ UHWLUHG DV WKHPLOLWDU\¶V VWDQGDUGVLGHDUP VHUYLFH SLVWRO 'XULQJ WKH PLG ¶V WKH 860& GHFLGHG WKDW WKH 0 ZDVQ¶W D VXLWDEOH
EDFNXS ZHDSRQ IRU &ORVH 4XDUWHUV &RPEDW WHDPV DUPHG ZLWK WKH 031 DV WKHLU SULPDU\ ZHDSRQ ,Q  VRPH  0$V ZHUH
VKLSSHGRIIWRWKH5LIOH7HDP(TXLSPHQW6KRSDW4XDQWLFRZKHUHWKH\ZHUHKDQGUHEXLOWDQGPRGLILHGWR³QHDUPDWFK´ RU³FRPEDWDFFXUL]HG´
VWDWH7KHUHVXOWLVWKH0(862&3LVWRO0(862&LVWKHDEEUHYLDWLRQ
IRU0DULQH([SHGLWLRQDU\8QLW6SHFLDO2SHUDWLRQV&DSDEOH
7KHVH SLVWROV EHJLQ DV D VWULSSHG DQG LQVSHFWHG JRYHUQPHQW
FRQWUDFW0$SLVWROIUDPHFLUFD 7KHIUDPHLVGHKRUQHGDQGWKH
IHHG UDPS LV SROLVKHG DQG WKURDWHG $OO LQWHUQDO SDUWV DUH UHSODFHG ZLWK
FXUUHQWFRPPHUFLDODIWHUPDUNHWSDUWV7KHZHDSRQLVILWWHGZLWKDEHDYHUWDLO
JULS VDIHW\ DQG DPELGH[WURXV WKXPE VDIHW\ IURP .LQJ¶V *XQ :RUNV:KLOH
WKLV PRGLILFDWLRQ LV FRQVLGHUHG VXSHUIOXRXV WKH SLVWROV QHHG WR EH
FRQGLWLRQHGIRUXVHLQ HLWKHUKDQGE\DQ\PDULQH LQWKHSODWRRQ WKHZHDSRQ
LVLVVXHGWR(YHQZLWK WKHFXUUHQWPRGLILFDWLRQVPDQ\VKRRWHUVDUHXQDEOH
WRGHSUHVVWKHJULSVDIHW\ZKHQWKHWKXPELVSURSHUO\RQWKHWKXPEVDIHW\
7KH QH[W VHULHV RI UHEXLOGV ZLOO IHDWXUH D ³PHPRU\ EXPS´ JULS VDIHW\
KRSHIXOO\WRHQGWKHIRUELGGHQSUDFWLFHRIWDSLQJWKHJULSVDIHW\FORVHG7KH
ROG WULJJHUV DUH UHSODFHG ZLWK 9LGHFNL DOXPLQXP WULJJHUV WXQHG WR D SXOO RI
IRXU WR ILYH SRXQGV 7KH VWDQGDUG VSXU KDPPHUV DUH UHSODFHG ZLWK WKH
URXQGHG KDPPHUV PDQXIDFWXUHG IRU WKH &ROW &RPPDQGHU 7KH VOLGHV DUH
SURYLGHGXQGHUFRQWUDFWE\&DVSLDQDQG6SULQJILHOG,QF7KHFXUUHQWVOLGHV
IHDWXUHDORZHUHGDQGVFDOORSHGHMHFWLRQSRUW WRLPSURYHHMHFWLRQ7KHVHWRR
ZLOOEHUHSODFHGLQWKHQH[WUHEXLOGVHULHVIHDWXULQJQHZVOLGHVZLWKIRUZDUG
VOLGHVHUUDWLRQVWRHQKDQFHFKDPEHUHGURXQGYHULILFDWLRQZKHQSHUIRUPLQJD
SUHVV FKHFN 7KH SUHFLVLRQ EDUUHOVDUHSURYLGHGE\%DU6WRDQGWKH EDUUHO
[J K+*2I%
EXVKLQJVFRPHIURP.LQJ¶V*XQ :RUNV DVGRWKHIURQWVLJKW
7KH UHVWRIWKHSDUWVDUHPDQXIDFWXUHG DWWKH57(6KRS )LUVWLVWKHKLJKSURILOHUHDUVLJKW WKDWSURYLGHVDQH[FHOOHQWVLJKWSLFWXUH
ZKLFK DUH VWDNHG LQWR SRVLWLRQ UDWKHU WKDQ XVLQJ WKH PRUH FRPPRQ DQG VHFXUH GRYHWDLO WHFKQLTXH 7KH\ DOVR ILW WKH JXQ ZLWK VPRRWK
3DFKPD\HU UXEEHU JULS SDQHOV D ODQ\DUG ORRS DQG D ILEHU UHFRLO EXIIHU 7KHVH EXIIHUV DEVRUE D JRRG DPRXQW RI WKH EDWWHULQJ EXW ZLOO
HYHQWXDOO\GHWHULRUDWHUHOHDVLQJGHEULVLQVLGHWKHJXQ7KLVLVQRUPDOO\DSUREOHPH[FHSWIRUWKHPDLQWHQDQFHRQWKHVHZHDSRQVKDVWDNHQRQ
DOPRVW UHOLJLRXV SURSRUWLRQV )LQDOO\ WKH JHQHUDO LVVXH PDJD]LQHV DUH DOVR UHSODFHG ZLWK FRPSHWLWLRQ JUDGH FRPPHUFLDO VWDLQOHVV VWHHO
PDJD]LQHVZLWKDURXQGHGSODVWLFIROORZHUDQGH[WHQGHGIORRUSODWH 7KHODQ\DUGVDUHVXSSOLHGE\WKHVKRRWHUVDQGLQW\SLFDOPLOLWDU\WUDGLWLRQ
DUHW\SLFDOO\QRWDFWXDOODQ\DUGVEXWVXFKWKLQJVDVOHQJWKVRIVWUDLJKWRUFRLOHGWHOHSKRQHFRUGFDEOHWLHVWZLQH]LSFXIIVDQGWKHOLNH
$ORQJZLWKWKHVHIHZ0YDULDQWVXVHGE\WKH860LOLWDU\WKHUHKDYHEHHQGR]HQVRIDGGLWLRQDOFORQHVPDQXIDFWXUHGIRUWKH
FRPPHUFLDODQGPLOLWDU\PDUNHWVQRWRQO\LQWKH8QLWHG6WDWHVEXWDURXQGWKHZRUOG7KRVHPDQ\JXQVZLOOEHGHWDLOHGDWDODWHUGDWH
 [J K+*2I%
&\EHUWKULOOHU
(IIHFW :HLJKW :HLJKW
5DWHRI 5DQJH (PSW\ /RDGHG
:HDSRQ 7\SH $&& &RQ $Y &DOLEHU '0 $PPR )LUH 5HO PHWHUV NJ NJ &RVW
0$3LVWRO +1'  - 0& $&3   >66@ 95    
0$3LVWROQHZ +1'  - 0& $&3   >66@ 95    
0*HQHUDO2IILFHUV3LVWRO +1'  - 02 $&3   >66@ 95    
0(862& 3LVWRO +1'  - 0 $&3   >66@ 95    
6SHFLDO5XOHV 7KH0*HQHUDO2IILFHUV3LVWROZDVLVVXHGRQO\WRRIILFHUVRIWKHUDQNRI&RORQHORUKLJKHU

'6\VWHP
'DPDJH 5DQJH 5DWHRI 3XUFKDVH
:HDSRQ 'DPDJH &ULWLFDO 7\SH ,QFUHPHQW )LUH 0DJ 6L]H :HLJKW '& 5HVWULFWLRQ
0$3LVWRO G  EDOOLVWLF  6$  0HG  OE  /LF 
0$3LVWROQHZ G  EDOOLVWLF  6$  0HG  OE  /LF 
0*HQHUDO2IILFHUV3LVWRO G  EDOOLVWLF  6$  0HG  OE  /LF 
0(862& 3LVWRO G  EDOOLVWLF  6$  0HG  OE  /LF 
7KH0(862&3LVWROVKRXOGEHFRQVLGHUHGD0DVWHUFUDIWZHDSRQ
6SHFLDO5XOHV
7KH0*HQHUDO2IILFHUV3LVWROZDVLVVXHGRQO\WRRIILFHUVRIWKHUDQNRI&RORQHORUKLJKHU

)8'*(
:HDSRQ 6KRWV 5DWHRI)LUH 5DQJH $FF\ 'PJ &RVW 1RWHV
0$3LVWRO  6$ 7HUULEOH )DLU  
0$3LVWROQHZ  6$ 0HGLRFUH *RRG  
0*HQHUDO2IILFHUV3LVWRO  6$ 3RRU *RRG  
0(862& 3LVWRO  6$ 0HGLRFUH 6XSHUE  
6SHFLDO5XOHV 7KH0*HQHUDO2IILFHUV3LVWROZDVLVVXHGRQO\WRRIILFHUVRIWKHUDQNRI&RORQHORUKLJKHU

$FWLRQ
675 0D[
:HDSRQ 'PJ 7\SH $FF 5PRG 5R) $PP :W &RVW 1RWHV
0LQ 5QJ
0$3LVWRO G 3/        
0$3LVWROQHZ G 3/        
0*HQHUDO2IILFHUV3LVWRO G 3/        
0(862& 3LVWRO G 3/        
6SHFLDO5XOHV 7KH0*HQHUDO2IILFHUV3LVWROZDVLVVXHGRQO\WRRIILFHUVRIWKHUDQNRI&RORQHORUKLJKHU
 [20 2W%,2[*"-2N-
7KH %URZQLQJ 0  FDOLEHU PP
:HDSRQ 0&DOLEHU+HDY\0DFKLQH*XQ
0DFKLQH*XQLVD:RUOG:DU ,,HUD DXWRPDWLFEHOWIHG
0DQXIDFWXUHU )10DQXIDFWXULQJ <HDU 
UHFRLO RSHUDWHGDLUFRROHGFUHZRSHUDWHGPDFKLQHJXQ
7KH 0 LV FUHZ WUDQVSRUWDEOH ZLWK OLPLWHG DPRXQWV RI 1DWLRQ 8QLWHG6WDWHV
DPPXQLWLRQRYHUVKRUWGLVWDQFHV7KLVJXQLVKDVDEDFN &DOLEHU %0* 0DJV URXQGEHOW
SODWH ZLWK VSDGH JULSV WULJJHU DQG EROW ODWFK UHOHDVH $FFXUDF\ *URXS FP#P 02$
7KH JXQ LV HTXLSSHG ZLWK OHDIW\SH UHDU VLJKW IODVK .LOO 3HQ
VXSSUHVVRU DQG D VSDUH EDUUHO DVVHPEO\ %\ 9HORFLW\ PV (QHUJ\
UHSRVLWLRQLQJ VRPH RI WKH FRPSRQHQW SDUWV DPPXQLWLRQ :HLJKW (PSW\ NJ 52) 66 
PD\ EH IHG IURP HLWKHU WKH OHIW RU ULJKW VLGH $ /RDGHG NJ 0% 
GLVLQWHJUDWLQJ PHWDOOLF OLQNEHOW LV XVHG WR IHHG WKH /HQJWK PP %XUVW 
DPPXQLWLRQ LQWR WKH ZHDSRQ 7KH JXQ LV FDSDEOH RI 5DQJH (IIHFWLYH P $XWR 
VLQJOHVKRWJURXQG0DVZHOODVDXWRPDWLFILUH 0D[ P &\FOLF 
7KLV JXQ PD\ EH PRXQWHG RQ JURXQG PRXQWV 1RWHV 7ULSRGDQG7 (PHFKDQLVPZHLJKVLQDWNLORJUDPV
DQGPRVWYHKLFOHVDVDQDQWLSHUVRQQHODQGDQWLDLUFUDIW
ZHDSRQ$VVRFLDWHGFRPSRQHQWVDUHWKH0DQWLDLUFUDIW
PRXQWDQGWKH0WULSRGPRXQW7KH0&DOIOH[LEOHYHUVLRQLVXVHGDVDJURXQGJXQRQWKH0WULSRGPRXQWRUYDULRXV1DYDOPRXQWV
7KH0&DO0WXUUHWW\SHIL[HGW\SHDQGVRIWPRXQWDUHLQVWDOOHGRQPRXQWVRIVHYHUDOGLIIHUHQWW\SHVRIFRPEDWYHKLFOHVDQGVKLSV
7KHZHDSRQSURYLGHVDXWRPDWLFZHDSRQVXSSUHVVLYHILUHIRURIIHQVLYHDQGGHIHQVLYHSXUSRVHV7KLVZHDSRQFDQEHXVHGHIIHFWLYHO\DJDLQVW
SHUVRQQHOOLJKWDUPRUHGYHKLFOHVORZVORZIO\LQJDLUFUDIWDQGVPDOOERDWV
7KH0PDFKLQHJXQRQWKH0WULSRGSURYLGHGDYHU\VWDEOHILULQJSODWIRUP7RJHWKHUZLWKLWVVORZUDWHRIILUHDQGLWVWUDYHUVLQJDQG
HOHYDWLQJ PHFKDQLVP WKH 0 ZDV XVHG WR D YHU\ OLPLWHG H[WHQW DV D VQLSHU ZHDSRQ GXULQJ WKH 9LHWQDP ZDU DW IL[HG LQVWDOODWLRQV VXFK DV
ILUHEDVHV6QLSHUVSUHILUHGWKHZHDSRQVDWLGHQWLILDEOHWDUJHWVDQGZRUNHGWKHGDWDLQWRUDQJHFDUGVLQVXULQJLQFUHDVHGILUVWURXQGDFFXUDF\
7KH VW %DWWDOLRQ WK ,QIDQWU\ WK ,QIDQWU\ 'LYLVLRQ FRQVWUXFWHG  IRRW KLJK VKRRWLQJ SODWIRUPV DGGLQJ VWHHO EDVH SODWHV DQG SRVWVWR
IXUWKHUVWDELOL]H WKH 0 RQ WKH 0 WULSRG 7RJHWKHU ZLWK WKH XVH RI 6WDUOLJKW QLJKW YLVLRQ VFRSHVWKH 0 VHYHUHO\ OLPLWHG HQHP\PRYHPHQW
ZLWKLQ\DUGVPRIWKHSHULPHWHURIDILUHEDVH
7KHPRVWUHFHQWLQQRYDWLRQIRUWKH0KDVFRPHIURPWKH%ULWLVKZLWKWKHGHYHORSPHQWRIWKH0+%4&%ZKLFKKDVFRPHLQWR
ZLGHVSUHDG XVH E\ DOO 1$72 QDWLRQV XVLQJ WKH 0 1RUPDOO\ WKH EDUUHO RQ DQ 0+% UHTXLUHV D JUHDW GHDO RI WHGLRXV DGMXVWPHQWV RI
KHDGVSDFH DQG WLPLQJ UHTXLULQJ KRXUV RQ D EDG GD\ %\ LQVWDOOLQJ WKLV TXLFNFKDQJH NLW EDUUHOV RQ WKH 0 FDQ QRZ EH VZDSSHG RXW DQG
UHSODFHGLQXQGHUVHFRQGV7KLVTXLFNFKDQJHNLWDGGVWRWKHFRVWRIDVWDQGDUG0+%7KH 0LVXVHGE\WKH8QLWHG6WDWHVDQG
RWKHUQDWLRQVZRUOGZLGH
[20 2W%,2[*"-2N-
&\EHUWKULOOHU
(IIHFW :HLJKW :HLJKW
5DWHRI 5DQJH (PSW\ /RDGHG
:HDSRQ 7\SH $&& &RQ $Y &DOLEHU '0 $PPR )LUH 5HO PHWHUV NJ NJ &RVW
0+%&DOLEHU >66@>$@
+9<  1 0 %0*   95    
0DFKLQHJXQ >&@
6SHFLDO5XOHV 7KHNJLQZHLJKWUHSUHVHQWVWKHWULSRGQRUPDOO\FDUULHGE\DJXQQHU¶VDVVLVWDQW

'6\VWHP
'DPDJH 5DQJH 5DWHRI 3XUFKDVH
:HDSRQ 'DPDJH &ULWLFDO 7\SH ,QFUHPHQW )LUH 0DJ 6L]H :HLJKW '& 5HVWULFWLRQ
0+%&DOLEHU0DFKLQHJXQ G  EDOOLVWLF  6$$ % /UJ OE  0LO
6SHFLDO5XOHV

)8'*(
:HDSRQ 6KRWV 5DWHRI)LUH 5DQJH $FF\ 'PJ &RVW 1RWHV
0+%&DOLEHU0DFKLQHJXQ  6$$& 6XSHUE )DLU  
6SHFLDO5XOHV

$FWLRQ
675 0D[
:HDSRQ 'PJ 7\SH $FF 5PRG 5R) $PP :W &RVW 1RWHV
0LQ 5QJ
0+%&DOLEHU0DFKLQHJXQ G 3/        
6SHFLDO5XOHV
 [ 2N-2R-*"
7KH0LVDPPJUHQDGHODXQFKHUGHVLJQHG
:HDSRQ 0*UHQDGH/DXQFKHU
WR DWWDFK WR DQ 0$ ULIOH ,WV GHYHORSPHQW ZDV DQ
0DQXIDFWXUHU &ROW <HDU 
RXWJURZWK IURP WKH $UP\
V PLGFHQWXU\ ZRQGHU ZHDSRQ
WKH 63,: 7KH 63,: ZDV VXSSRVHG WR EH YHU\ PXFK OLNH 1DWLRQ 8QLWHG6WDWHV
WKH2,&:DIOHFKHWWHJXQFRPELQHGZLWKDPPJUHQDGH &DOLEHU [PP/9JUHQDGH 0DJV 
ODXQFKHU PXFK OLNH WKH 2,&:
V PP ULIOH DQG PP $FFXUDF\ *URXS 02$
FDQQRQ .LOO 3HQ
$V WKH 63,: SURMHFW DGYDQFHG WKH PP 9HORFLW\ PV (QHUJ\
PXQLWLRQV ZHUH ILQDOL]HG DQG DGRSWHG E\ WKH 86 PLOLWDU\ :HLJKW (PSW\ NJ 52) 66 
$ORQJ ZLWK WKLV FDPH D VWDQGDORQH ODXQFKHU WKH 0 /RDGHG NJ 0% 
%ORRSHU7KH0ZDVDZHOOOLNHG ZHDSRQ DVLGH IURPLWV /HQJWK  PP %XUVW 
ODFN RI DFFXUDF\ 8QIRUWXQDWHO\ LWV VKRUWFRPLQJ ZDV WKDW 5DQJH 0LQLPXP P $XWR 
WKH JUHQDGLHU ZDV QRUPDOO\ LVVXHG D 0$ SLVWRO DV D 0D[ P &\FOLF 
VHFRQGDU\ ZHDSRQ ZKLFK ZDV HQWLUHO\ LQVXIILFLHQW RQ D (PSW\ORDGHGZHLJKWGRHVQRWDFFRXQWIRUWKHULIOHWKH0
IOXLG EDWWOH ]RQH ILOOHG ZLWK DXWRPDWLF ZHDSRQV $IWHU IRXU 1RWHV QHHGVWREHDWWDFKHGWRLQRUGHUWRIXQFWLRQ$IXOO\
\HDUV LQ VHUYLFH WKH 86 $UP\ ZDQWHG D UHSODFHPHQW IRU ORDGHG0$ZLWK0ZHLJKVLQDWNJ
WKH0WKDWDOORZHGVROGLHUWRFDUU\DQDXWRPDWLFZHDSRQ
2Q RWKHU ZRUGVWKH\ ZDQWHG D UHSODFHPHQW IRU WKH IDLOLQJ :HDSRQ 0*UHQDGH/DXQFKHU3, /RQJ
63,:SURJUDP 0DQXIDFWXUHU &ROW%XVKPDVWHU <HDU 
7KHFRPSHWLWLRQIRUWKHUHSODFHPHQWIRUWKH0
1DWLRQ 8QLWHG6WDWHV
WRRN SODFH EHWZHHQ  DQG  ZKHUH WKH WHVW
&DOLEHU [PP/9JUHQDGH 0DJV 
ZHDSRQV DFWXDOO\ VDZ FRPEDW ZLWK WKH WURRSV 'XULQJ WKLV
SHULRG WKHGRPLQDQW ZHDSRQ LQWKHSURJUDPZDVWKH ;0 $FFXUDF\ *URXS 02$
 PP JUHQDGH ODXQFKHU GHVLJQHG E\ &ROW 6HYHUDO .LOO 3HQ
KXQGUHG RI WKHVH ODXQFKHUV ZHUH PDQXIDFWXUHG DQG VDZ 9HORFLW\ PV (QHUJ\
FRPEDWLQ9LHWQDP 'XULQJWKLV WLPHVHYHUDOKXQGUHG;0 :HLJKW (PSW\ NJ 52) 66 
ODXQFKHUVDOVRVDZFRPEDW,QWKHHQGWKH0ZDV /RDGHG NJ 0% 
WKH ZLQQHURIWKHFRPSHWLWLRQDQGLWKDV VHUYHGLQWKH 86 /HQJWK  PP %XUVW 
PLOLWDU\IRUWKHODVW\HDUV 5DQJH 0LQLPXP P $XWR 
2OGHU0ZHUHGHVLJQHGVSHFLILFDOO\IRUILWWLQJ 0D[ P &\FOLF 
WR WKH 0$ DQG 0$ ULIOHV ,W FRQVLVWV RI D (PSW\ORDGHGZHLJKWGRHVQRWDFFRXQWIRUWKHULIOHWKH0
UHSODFHPHQW KDQGJXDUG ZLWK DQ DGMXVWDEOH IROGLQJ VKRUW 1RWHV QHHGVWREHDWWDFKHGWRLQRUGHUWRIXQFWLRQ$IXOO\
UDQJH EODGH VLJKW DVVHPEO\ DQG WKH PHFKDQLFDO SDFNDJH ORDGHG0$ZLWK0ZHLJKVLQDWNJ
WKDWFRPSRVHVWKHDFWXDOJUHQDGHODXQFKHU/DWHUDVHFRQG
VLJKW IL[WXUH ZDV PDGH DYDLODEOH ,W LV D TXDGUDQW VLJKW :HDSRQ 0*UHQDGH/DXQFKHU 3,6KRUW
ZKLFK FDQ EH ILWWHG WR WKH FDUU\ KDQGOH RQ 0$ DQG 0DQXIDFWXUHU &ROW%XVKPDVWHU <HDU 
0$ULIOHVDQGLVXVHGZKHQSUHFLVLRQLVUHTXLUHGRXWWR 1DWLRQ 8QLWHG6WDWHV
WKH PD[LPXP HIIHFWLYH UDQJH RI WKH ZHDSRQ 7KH FXUUHQW
&DOLEHU [PP/9JUHQDGH 0DJV 
PDQXIDFWXUH RI 0 JUHQDGH ODXQFKHUV DUH GHVLJQHG IRU
$FFXUDF\ *URXS 02$
XVHZLWKWKH062302'.LWRUWKH00RGXODU:HDSRQ
.LOO 3HQ
6\VWHP7KHVH0VDUH EXLOW WREHFRPSDWLEOH ZLWK WKH
SLFDWLQQ\UDLOVWKDWUHSODFHWKHKDQGJXDUGRQPDQ\0$ 9HORFLW\ PV (QHUJ\
DQG 0$ ULIOHV RU 0$ FDUELQHV XVHG E\ WURRSV :HLJKW (PSW\ NJ 52) 66 
DWWDFKHGWR8662&20 /RDGHG NJ 0% 
,Q DQ\ FDVH WKH 0 QR PDWWHU ZKLFK IRUP LW /HQJWK PP %XUVW 
PD\ EH LV D OLJKWZHLJKW FRPSDFW EUHHFKORDGLQJ SXPS 5DQJH 0LQLPXP P $XWR 
DFWLRQ VLQJOH VKRW JUHDQGH ODXQFKHU FDSDEOH RI ILULQJ D 0D[ P &\FOLF 
ZLGHYDULHW\RI[PPORZYHORFLW\JUHQDGHV (PSW\ORDGHGZHLJKWGRHVQRWDFFRXQWIRUWKHULIOHWKH0
$V WKH ¶V SURJUHVVHG LQWR WKH ¶V WKH 1RWHV QHHGVWREHDWWDFKHGWRLQRUGHUWRIXQFWLRQ$IXOO\
0 ZHQW WKURXJK D 3URGXFW ,PSURYHPHQW 3URJUDP ORDGHG0$ZLWK0ZHLJKVLQDWNJ
UHVXOWLQJ LQ WKH 0 3, 7KHPDQXIDFWXUHU GHYHORSHG WKH
ULIOHLQWHUIDFHUDLOV\VWHPDQGHDUO\SUHGHFHVVRUWRWKHUDLO
LQWHUIDFH V\VWHP QRZ EHFRPLQJ D FRPPRQ IHDWXUH RQ DVVDXOW ULIOHV 7KLV ULIOH LQWHUIDFH UDLO V\VWHP UHPRYHG WKH 0 IURP WKH PROGHG
KDQGJXDUG DQGSODFHGLWRQDPRXQWLQJXQLW7KHPDQXIDFWXUHUWKHQFUHDWHGUHSODFHPHQWKDQGJXDUGVILWWHGIRUDZLGHYDULHW\RIDVVDXOWULIOHV
DOORIZKLFKZHUHXQLYHUVDOO\FRPSDWLEOHZLWKWKHPRXQWVRQWKHPRGLILHG0$VWUDQJHERQXVLVWKDWWKH,WKDFD6WDNHRXWJD6KRWJXQILWV
WKH EUDFNHWV DV ZHOO 7KH 0 3, LV DOVR GHVLJQHG ZLWK D GXDO ORDGLQJ EDUUHO VOLGH +LW WKH UHOHDVH RQFH DQG WKH EDUUHO VOLGHV IRUZDUG IDU
HQRXJKWR ORDGWKHXVXDOORZYHORFLW\JUHQDGHVPDGHIRUWKH0DQG0ODXQFKHUV+LWWKHVOLGHDVHFRQGWLPHDQGWKHEUHHFKFDQEH
RSHQHGIXUWKHUDOORZLQJWKHZHDSRQWRDFFHSWWKHORQJHUKLJKYHORFLW\URXQGVXVHGLQWKH0N*UHQDGH0DFKLQH*XQ+RZHYHUWKHILULQJ
RIWKHKLJKYHORFLW\URXQGVSURGXFHVDWHUULEOHUHFRLOVRVROGLHUVZLOOLQJWR XVHWKRVHURXQGVLQDQ03,DUHIHZDQGIDUEHWZHHQ
7KH03,LVDYDLODEOHLQWZRIRUPDWVORQJDQGVKRUWEDUUHOHG7KH03,/RQJLVGHVLJQHGWREHPRXQWHGXQGHUEDUUHOWRPRVW
IXOOVL]HGWUDGLWLRQDOIRUPDWDVVDXOWULIOHV7KH03,6KRUWLVGHVLJQHGWREHDIIL[HGWRFDUELQHVDQGEXOOSXSOD\RXWULIOHV
[ 2N-2R-*"

0)LWWHGZLWKDQ0

0)LWWHGWRDQ)

866ROGLHUDLPLQJDQ00IRUVFDOHUHIHUHQFH
 [ 2N-2R-*"
[ 2[--
0000+LJK([SORVLYH*UHQDGH
7KLV LV WKH PRVW FRPPRQ JUHQDGH DYDLODEOH IRU WKH 0 ,W LV D KLJK
H[SORVLYHIUDJPHQWLQJ
0XQLWLRQ 0000 JUHQDGH FDSDEOH RI
7\SH +()UDJPHQWLQJ SURGXFLQJ VHULRXV
FDVXDOWLHVZLWKLQDILYH
'LUHFW)LUH5DQJH P
PHWHU UDGLXV RI WKH
,QGLUHFW)LUH5DQJH P
SRLQW RI GHWRQDWLRQ
:HLJKW NJ 7KH 0 LV WKH
3HQHWUDWLRQ  RULJLQDOURXQGZLWKDQ
%ODVW5DGLXV P IXVH DUPLQJ UDQJH RI
RQO\  WR  PHWHUV
7KLVPHDQVWKHURXQGLVFDSDEOHRISURGXFLQJDORWRIIULHQGO\ILUHLQMXULHV
VLQFHWKH JUHQDGHDUPVZKLOHWKH JUHQDGLHULVVWLOOZLWKLQ LWVEXUVWUDGLXV
7KLV LQ WXUQ OHDG WR WKH 0 DQG 0 JUHQDGHV ZLWK LPSURYHG IXVLQJ
WHFKQRORJ\ 7KH\ ERWK ZLOO QRW DUP XQWLO WKH URXQG KDV WUDYHOOHG  WR 
PHWHUV IURPWKH PX]]OH RI WKH ODXQFKHU 2WKHUZLVH WKH 0 DQG 0
SHUIRUPLGHQWLFDOO\WRWKH0%RWKJUHQDGHVSURGXFHFDVXDOWLHVLQD 
PHWHUUDGLXVRIWKHLUSRLQWRIGHWRQDWLRQ7KHURXQGVDUHLPSDFWIXVHGVR
WKH\GHWRQDWHXSRQLPSDFWZLWKWKHJURXQGRUVRPHRWKHUVXIILFLHQWO\KDUG
VXUIDFH 7KH 0 LV LGHQWLFDO WR WKH 0 ULJKW GRZQ WR WKH  PHWHU
DUPLQJUDQJH7KHRQO\GLIIHUHQFHLVWKHH[SORVLYHILOOHUXVHG

0+LJK([SORVLYH$LUEXUVW*UHQDGH
7KH 0 JUHQDGH LV HVVHQWLDOO\ DQ 0 JUHQDGH ZLWK D GLIIHUHQW IXVH 7KH URXQG LV
0XQLWLRQ 0 IXVHGIRUDLUEXUVWGHWRQDWLRQH[SORGLQJRQFHLWUHDFKHVWKHSRLQWLQLWVGHVFHQWLQZKLFKLW
7\SH +($%)UDJPHQWLQJ LVPHWHUVDERYHWKHJURXQG8QIRUWXQDWHO\XQOLNHPRVWDLUEXUVWPXQLWLRQVWKLVGRHVQRW
'LUHFW)LUH5DQJH P SURGXFHDQ\ VLJQLILFDQW LQFUHDVH LQ WKHFDVXDOW\ SURGXFWLRQUDGLXV RI WKHJUHQDGHZKLFK
,QGLUHFW)LUH5DQJH P UHPDLQVDPHUHILYHPHWHUVIRUWKLVJUHQDGHW\SH
:HLJKW NJ
3HQHWUDWLRQ 
%ODVW5DGLXV P

0+LJK([SORVLYH'XDO3XUSRVH*UHQDGH
7KLVURXQGLVGHVLJQHGWRSURYLGHDQWLDUPRUFDSDELOLWLHVDJDLQVWPDQ\RIWKHYHU\
WKLQO\DUPRUHGDUPRUHGYHKLFOHVWKDWZHUHFRPPRQLQWKHODWH
VDQGHDUO\

V 7KH URXQG LV FDSDEOH RI WKH VDPH ILYH PHWHU FDVXDOW\ SURGXFWLRQ
IUDJPHQWDWLRQ EXUVW UDGLXV DV
0XQLWLRQ 0 WKH PRUH FRPPRQ 0 EXW
7\SH +('3 ZKHQILUHVWGLUHFWO\DJDLQVWDQ
'LUHFW)LUH5DQJH P DUPRUHGWDUJHWWKLVURXQGZLOO
,QGLUHFW)LUH5DQJH P DEODWHPLOOLPHWHUV RIUROOHG
:HLJKW NJ KRPRJHQRXV DUPRU 5+$
3HQHWUDWLRQ PP &XUUHQWO\ WKH 86 PLOLWDU\ LV
%ODVW5DGLXV P VWDQGDUGL]LQJ ZLWK WKH +('3
URXQGDQGZLOOEHSKDVLQJRXW
PRVW RI WKH RWKHU H[SORVLYH PP ORZ YHORFLW\ ODXQFKHG JUHQDGHV LQ WKHLU
LQYHQWRU\
[ 2N-2R-*"
0:KLWH3KRVSKRUXV*UHQDGH
8SRQ LPSDFWWKLVJUHQDGHURXQGH[SORGHVGLVWULEXWLQJ ERWKQRUPDO DOXPLQXPIUDJPHQWV
0XQLWLRQ 0 RIPRUHFRPPRQ+(JUHQDGHVDQGIUDJPHQWVRIZKLWHSKRVSKRUXV8SRQFRQWDFWZLWKWKH
7\SH :3 RSHQ DLU WKH SKRVSKRUXV EHJLQV FRPEXVWLQJ DQG ZLOO FRQWLQXH WR GR VR XQWLO FRQVXPHG
'LUHFW)LUH5DQJH P 7KHVHIUDJPHQWVZLOOEXUQIRUWRVHFRQGVHYHQDIWHUEHLQJFRYHUHGLQPDWHULDOVWKDW
,QGLUHFW)LUH5DQJH P VHSDUDWH LW IURP WKH DLU VXFK DV EORRG $V ORQJ DV R[\JHQ LV DYDLODEOH WR FRQWLQXH WKH
:HLJKW NJ SURFHVV WKH EXUQLQJ ZLOO FRQWLQXH 'XH WR WKH SKRVSKRUXV IUDJPHQWV WKH FDVXDOW\
3HQHWUDWLRQ  SURGXFWLRQEODVWUDGLXVIRUWKLVW\SHRIJUHQDGHLVPHWHUV
%ODVW5DGLXV P

0:KLWH3KRVSKRUXV$LUEXUVWLQJ*UHQDGH
7KLVJUHQDGHLVHVVHQWLDOO\LGHQWLFDOWRWKH0H[FHSWIRUWKHIXVLQJWHFKQRORJ\XWLOL]HG
0XQLWLRQ 0 LQLW7KH0ZLOOGHWRQDWHZKHQWZRPHWHUVRIIWKHJURXQG8QOLNHWKH0WKH0
7\SH :3$% GRHVSURGXFHDQH[SDQGHGFDVXDOW\SURGXFLQJEODVWUDGLXVGXHWRLWEXUVWLQWKHDLUUDWKHU
'LUHFW)LUH5DQJH P WKDQRQWKHJURXQGH[WHQGLQJWKHEODVWUDGLXVE\DQDGGLWLRQDOPHWHUV
,QGLUHFW)LUH5DQJH P
:HLJKW  NJ
3HQHWUDWLRQ 
%ODVW5DGLXV P

00XOWLSOH3URMHFWLOH5RXQG
7KLVSDUWLFXODUPXQLWLRQIRUWKH0LVQ
WDFWXDOO\DJUHQDGH7KLVFORVHTXDUWHUVFRPEDW
0XQLWLRQ 0 URXQG FRQWDLQV   EXFNVKRW SHOOHWV VKHDWKHG LQ D SODVWLF VDERW ,W ZDV RULJLQDOO\
7\SH :3$% GHVLJQHG IRU WKH 0 %ORRSHU WR FRPSHQVDWH IRU WKH 0$ SLVWRO WKDW JUHQDGLHUV
'LUHFW)LUH5DQJH P FDUULHG DVDVHFRQGDU\ ZHDSRQ +RZHYHUHYHQILULQJRQH RIWKHVHURXQGVRII HYHU\IHZ
,QGLUHFW)LUH5DQJH P VHFRQGV ZDVQ
W VXIILFLHQW FRPSHQVDWLRQ IRU WKH ODFN RI DQ DXWRPDWLF ZHDSRQ LQ WKH
:HLJKW NJ JUHQDGLHU
V KDQGV %XW WKDW ZDVQ
W TXLWH WKH GHDWK NQHOO IRU WKLV PXQLWLRQ 7KH 86 $UP\
3HQHWUDWLRQ  XVHV VKRWJXQV DV WKHLU SULPDU\ GRRU  URRP EUHDFKLQJ WRRO LQ XUEDQ ZDUIDUH VFHQDULRV
7KH VKRWJXQV LVVXHG DUH HDVLO\ FDSDEOH RI FRPSOHWHO\ GHVWUR\LQJ WKH HQWLUH GRRU NQRE
%ODVW5DGLXV P
DVVHPEOH LQ PRVW GRRUV ZLWK D VLJQOH VKRW 7KH 0 FDQ EH FDSDEOH RI WKH VDPH
EUHDFKLQJFDSDFLW\

00006WDU3DUDFKXWH)ODUH
7KH 0 :KLWH
0XQLWLRQ 0 6WDU 3DUDFKXWH
7\SH :3$% )ODUH LV WKH
'LUHFW)LUH5DQJH P SULPDU\
,QGLUHFW)LUH5DQJH P LOOXPLQDWLRQ IODUH
:HLJKW NJ IRU WKH 0
3HQHWUDWLRQ  )LUHGLQWRWKHDLU
%ODVW5DGLXV P EXUVWLQJ DW DQ
DOWLWXGH RI 
IHHW WKH IODUH
GHSOR\V D SDUDFKXWH DW LWV DSH[ DQG LJQLWHV WKH LOOXPLQDQW ILOO 7KH
URXQG ZLOO WKHQ GHVFHQG DW D UDWH RI URXJKO\  PHWHUV SHU VHFRQG
EXUQLQJIRUVHFRQGVEHIRUHWKHLOOXPLQDQWLVFRPSOHWHO\FRQVXPHG
,W LV DOVR XVHG IRU VLJQDOOLQJ 7KH 0 LOOXPLQDWHV LQ ZKLWH
$GGLWLRQDOO\ WKHUH LV DOVR WKH 0 *UHHQ 6WDU 3DUDFKXWH )ODUH
ZKLFKLOOXPLQDWHVLQJUHHQ7KH05HG6WDU3DUDFKXWH)ODUHDQG
WKH02UDQJH6WDU3DUDFKXWH)ODUH
 [ 2N-2R-*"
&\EHUWKULOOHU
(IIHFW :HLJKW :HLJKW
5DWHRI 5DQJH (PSW\ /RDGHG
:HDSRQ 7\SH $&& &RQ $Y &DOLEHU '0 $PPR )LUH 5HO PHWHUV NJ NJ &RVW
0*UHQDGH/DXQFKHU $&&   0 PP    95    
03,/RQJ $&&   0 PP    95    
03,6KRUW $&&   0 PP    95    
0+(*UHQDGH    0 'P    95    
0    0 'P    95    
0    0 'P    95    
0    0 'P    95    
0+($%*UHQDGH    0 'P    95    
PP
0+('3*UHQDGH    0    95    
'P
0:3*UHQDGH    0 'P    95    
0:3$%*UHQDGH    0 'P    95    
00XOWLSOH3URMHFWLOH    0 '    95    
0000
   0     95    
6WDU3DUDFKXWH)ODUH
6SHFLDO5XOHV

'6\VWHP
'DPDJH 5DQJH 5DWHRI 3XUFKDVH
:HDSRQ 'DPDJH &ULWLFDO 7\SH ,QFUHPHQW )LUH 0DJ 6L]H :HLJKW '& 5HVWULFWLRQ
0*UHQDGH/DXQFKHU     66  6P OE  0LO
03,/RQJ     66  6P OE  0LO
03,6KRUW     66  6P OE  0LO
0+(*UHQDGH G
 VODVKLQJ    6P OE  0LO
0 G
 VODVKLQJ    6P OE  0LO
0 G
 VODVKLQJ    6P OE  0LO
0 G
 VODVKLQJ    6P OE  0LO
0+($%*UHQDGH G
 VODVKLQJ    6P OE  0LO
0+('3*UHQDGH G
 VODVKLQJ    6P OE  0LO
0:3*UHQDGH G
 ILUH    6P OE  0LO
0:3$%*UHQDGH G
 ILUH    6P OE  0LO
00XOWLSOH3URMHFWLOH G  EDOOLVWLF    6P OE  0LO
00006WDU3DUDFKXWH
      6P OE  0LO
)ODUH
6SHFLDO5XOHV 7KH+('3JUHQDGHKDVD3(1PHDQLQJLWLJQRUHVSRLQWRIKDUGQHVVZKHQILUHGDWDYHKLFOH

)8'*(
:HDSRQ 6KRWV 5DWHRI)LUH 5DQJH $FF\ 'PJ &RVW 1RWHV
0*UHQDGH/DXQFKHU  66  )DLU  
03,/RQJ  66  )DLU  
03,6KRUW  66  )DLU  
0+(*UHQDGH   )DLU )DLU  
0   )DLU )DLU  
0   )DLU )DLU  
0   )DLU )DLU  
0+($%*UHQDGH   )DLU )DLU  
0+('3*UHQDGH   )DLU )DLU  
0:3*UHQDGH   )DLU )DLU  
0:3$%*UHQDGH   )DLU )DLU  
00XOWLSOH3URMHFWLOH   )DLU )DLU  
00006WDU   )DLU )DLU 

3DUDFKXWH)ODUH
6SHFLDO5XOHV
[ 2N-2R-*"
$FWLRQ
675 0D[
:HDSRQ 'PJ 7\SH $FF 5PRG 5R) $PP :W &RVW 1RWHV
0LQ 5QJ
0*UHQDGH/DXQFKHU          
03,/RQJ          
03,6KRUW          
0+(*UHQDGH G 3/        
0 G 3/        
0 G 3/        
0 G 3/        
0+($%*UHQDGH G 3/        
0+('3*UHQDGH G 3/        
0:3*UHQDGH 1RWH 3/        
0:3$%*UHQDGH 1RWH 3/        
00XOWLSOH3URMHFWLOH G 3/        
00006WDU
         
3DUDFKXWH)ODUH
6SHFLDO5XOHV 0 DQG 0 JUHQDGHV SURGXFH SHQHWUDWLQJ IUDJPHQWV RI SKRVSKRURXV 7KHVH JUHQDGHV SURGXFH G GDPDJH LQLWLDOO\
+RZHYHUDVWKH:3FRPEXVWVLWZLOOFRQWLQXHGRLQJGDPDJHWRWKHYLFWLPVIRUXSWRDQKRXU2YHUWKHQH[WWKUHHURXQGVWKH
GDPDJHZLOOEHGSHUURXQG$IWHUWKDWWKHFRPEXVWLRQVVORZVWRDVORZEXUQLQJZKLFKZLOOGRGSHUPLQXWHVIRUXSWRDQ
KRXU7RGHWHUPLQHKRZORQJLWFRQWLQXHVGLYLGHWKHRULJLQDOGDPDJHIURPWKHJUHQDGHE\DQGURXQGXS7KLVJLYHV\RXWKH
QXPEHURIPLQXWHSHULRGVWKHEXUQLQJZLOOFRQWLQXH
 [ 2NI[N 12MZ2O%2[JN
'XULQJ WKH 9LHWQDP :DU WKH 8QLWHG 6WDWHV
:HDSRQ 00&
PLOLWDU\ ZDV SODJXHG E\ WKH IODZV RI LWV PHGLXP PDFKLQH
0DQXIDFWXUHU )1+HUVWDO <HDU 
JXQV WKH 0 0 DQG 0 :KHQ WKHVH ZHDSRQV
ZHUHVHOHFWHG WRUHSODFH WKHLU:RUOG:DU,,SUHGHFHVVRUV 1DWLRQ %HOJLXP8QLWHG6WDWHV
LQWKH¶VWKH\ZHUHQRWFRPEDWSURYHQDQGVHHPHGWR &DOLEHU [PP1$72 0DJV %HOW
EHSHUIHFWO\VXLWDEOHZHDSRQV2QO\DIWHUWKH8QLWHG6WDWHV $FFXUDF\ *URXS FP#P 02$
IXOO\ HQWHUHG WKH 9LHWQDP :DU GLG WKH IODZV EHFRPH .LOO 3HQ
DSSDUHQW :LWK WKH 0 WKH PDMRU SUREOHPV LQYROYHG 9HORFLW\ PV (QHUJ\
RYHUKHDWLQJ DQG GHVLJQ IODZV WKDW PDGH EDUUHO FKDQJHV :HLJKW (PSW\ NJ 52) 66 
LPSRVVLEOH ZLWKRXW DVVLVWDQFH 7KH 0 DQG 0 /RDGHG NJ 0% 
YHKLFXODU PDFKLQHJXQVXVHGLQFRD[LDO DQG SLQWOHPRXQWV /HQJWK PP %XUVW 
RQ JURXQG YHKLFOHV DQG LQ DLUFUDIW ZRUH RXW DQG TXLFNO\ 5DQJH (IIHFWLYH P $XWR 
EURNH GRZQ DW VXFK D KLJK UDWH WKDW UHSODFHPHQW SDUWV 0D[ P &\FOLF 
FRXOGQRWEHUHOLDEO\VXSSOLHG0WDQNSODWRRQVIUHTXHQWO\ 0IHHGOHIWHMHFWVULJKW0&IHHGVULJKWHMHFWVOHIW
ZHUHIRUFHGWREXLOG RQH IXQFWLRQDO 0 RXWRIWKH ILYHRU /RDGHGZHLJKWUHIOHFWVDURXQGEHOWNJ(JUHVV
1RWHV
VRLQRSHUDEOH0VLQWKHXQLWWKHQVZDSWKDWRQHZRUNLQJ NLWDGGVNJDQGH[WHQGVWKHZHDSRQ¶VOHQJWKWR
ZHDSRQ IURP WDQN WR WDQN GXULQJ SUDFWLFH PDQHXYHUV PP
1HHGOHVV WR VD\ WKLV ZDV XQDFFHSWDEOH HYHQ DIWHU WKH
0 ZDV UHGHVLJQHG DV WKH 0( DQG UHFODVVLILHG WKH :HDSRQ 0'
0 GXH WR LWV ODFN RI SDUWV LQWHUFKDQJHDELOLW\ ZLWK WKH 0DQXIDFWXUHU )1+HUVWDO <HDU 
ROGHU0V
1DWLRQ %HOJLXP8QLWHG6WDWHV
%\WKHGHILFLHQFLHVRIWKHVHPDFKLQHJXQV
&DOLEHU [PP1$72 0DJV %HOW
OHDGWRDFRPSHWLWLRQWRUHSODFHWKHP,QYROYHGLQWKLVWKUHH
\HDU SURJUDP ZHUH WKH )1 0$*  6DFR 0( + . $FFXUDF\ *URXS FP#P 02$
0*%ULWLVK/$YDULDQWRIWKH)10$*)UHQFK$$7 .LOO 3HQ
1) YHKLFXODU YHUVLRQ RI WKH $$7  &DQDGLDQ & 9HORFLW\ PV (QHUJ\
%URZQLQJ 0$ UHFKDPEHUHG WR WKH PP 1$72 :HLJKW (PSW\ NJ 52) 66 
FDUWULGJHDQGDPD]LQJO\HQRXJKWKH6RYLHW3.0:LWKLQD /RDGHG NJ 0% 
\HDUDOOEXWWKH0$*DQG 0(ZHUHHOLPLQDWHG7KH /HQJWK PP %XUVW 
SURJUDP UHTXLUHG ERWK 05%6 0HDQ 5RXQGV %HIRUH 5DQJH (IIHFWLYH P $XWR 
6WRSSDJH DQG 05%) 0HDQ 5RXQGV %HIRUH )DLOXUH 0D[ P &\FOLF 
VWDQGDUGVWREHPHW7KH$UP\UHTXLUHGWKH0%56RI /RDGHGZHLJKWUHIOHFWVDURXQGEHOWLQDQDPPXQLWLRQ
URXQGV DQG 05%) RI  URXQGV EXW SUHIHUUHG WKH ER[WKDWFOLSVWRWKHVLGHRIWKH ZHDSRQNJ(JUHVV
1RWHV
ZHDSRQV UHDFK  URXQGV IRU WKH 05%6 DQG  NLWDGGVNJDQGH[WHQGVWKHZHDSRQ¶VOHQJWKWR
URXQGV IRU WKH 05%) 7KH IODZHG 0 PDQDJHG DQ PP
05%6 RI  URXQGV DQG DQ 05%) RI  URXQGV 7KH
0(PDQDJHGDQ05%6RIURXQGVDQGDQ 05%)RI :HDSRQ 0%
 URXQGV 7KH 0$*  PDQDJHG DQ 05%6 RI  0DQXIDFWXUHU )1+HUVWDO <HDU 
URXQGV DQG DQ 05%) RI  URXQGV IDU H[FHHGLQJ WKH 1DWLRQ %HOJLXP8QLWHG6WDWHV
GHVLUHG ³GUHDP VKHHW´ VSHFLILFDWLRQV DQG SURYLQJ LWVHOI WKH &DOLEHU [PP1$72 0DJV %HOW
PRVW UHOLDEOH ZHDSRQ DYDLODEOH 2QFH WKH RUGHU ZDV
$FFXUDF\ *URXS FP#P 02$
SODFHG WKH ILUVW  ZHDSRQV ZHUH LPSRUWHG IURP
.LOO 3HQ
%HOJLXP ZKLOH HYHU\ ZHDSRQ PDQXIDFWXUHG IRU WKH 'R'
VLQFHKDVEHHQPDQXIDFWXUHGLQVLGHWKH8QLWHG6WDWHV 9HORFLW\ PV (QHUJ\
7KH0FDPHDORQJLQLQLWLDOO\DVSDUWRI :HLJKW (PSW\ NJ 52) 66 
WKH VWDQGDUG DUVHQDO RI WKH EUDQG QHZ 0 $EUDPV 0DLQ /RDGHG NJ 0% 
%DWWOH 7DQN 7KH 0 ZDV D GUHDP LQ FRPSDULVRQ WR LWV /HQJWK PP %XUVW 
LPPHGLDWHSUHGHFHVVRUVDQGUDSLGO\EHFDPHWKHVWDQGDUG 5DQJH (IIHFWLYH P $XWR 
PPPHGLXPJHQHUDOSXUSRVH PDFKLQHJXQIRUXVH RQ 0D[ P &\FOLF 
DOO YHKLFOHV $VWRQLVKLQJO\ WKH 0¶V GHVLJQ LV DFWXDOO\ 1RWHV /RDGHGZHLJKWUHIOHFWVDURXQGEHOW
ROGHUWKDQWKH0VDQG0VWKDWLWUHSODFHG7KH0
LV NQRZQ WR WKH UHVW RI WKH ZRUOG¶V PLOLWDULHV DV WKH )1 :HDSRQ 0*
+HUVWDO 0$*  RU 0LWUDLOOHXVH G¶$SSXL *HQHUDO PRGHO 0DQXIDFWXUHU )1+HUVWDO <HDU 
 &KRRVLQJ WKH 0$*  ZDVQ¶W D VLPSOH SURFHVV LW 1DWLRQ %HOJLXP8QLWHG6WDWHV
FRPSHWHG IRU D QXPEHU RI \HDUV DJDLQVW D ZLGH UDQJH RI &DOLEHU [PP1$72 0DJV %HOW
PHGLXP FDOLEHU PDFKLQH JXQV IURP DURXQG WKH ZRUOG 1RU $FFXUDF\ *URXS FP#P 02$
KDV WKH 8QLWHG 6WDWHV VLPSO\ VHWWOHG IRU WKH ZHDSRQ WKH\
.LOO 3HQ
FKRVH LQ  ,W KDV HYROYHG RYHU WLPH JRLQJ WKURXJK D
9HORFLW\ PV (QHUJ\
QXPEHU RI LPSURYHPHQWV 7KH ILUVW LPSURYHPHQW ZDV WKH
:HLJKW (PSW\ NJ 52) 66 
0& 7KH 0 IHHGV IURP WKH OHIW DQG HMHFWV ULJKW
/RDGHG NJ 0% 
ZKLOHWKH0&IHHGVIURPWKHULJKWDQGHMHFWVOHIW$VWKH
0ZDVUHWURILWWHGLQWRROGHUYHKLFOHVWKDWXVHGWKH0 /HQJWK PP %XUVW 
RU 0 WKH IHHG GLUHFWLRQ RI WKH 0 FDXVHG VRPH 5DQJH (IIHFWLYH P $XWR 
SUREOHPV:LWKWKHKLJKOHYHORISDUWVLQWHUFKDQJHDELOLW\DOO 0D[ P &\FOLF 
ZHDSRQVRIWKH0IDPLO\FDQEHFRQYHUWHGWRWKLVULJKW 1RWHV /RDGHGZHLJKWUHIOHFWVDURXQGEHOW
KDQGIHHGZLWKSDUWVIURPWKH0&7KDWZDVQ¶WWKHHQG
RIWKHYHKLFOHPRXQWHG0¶V7RILWSLQWOHPRXQWVWKH\GHSOR\HGWKH0(ZKLFKLVILWWHGZLWKDWULJJHUDVVHPEO\ZLWKVSDGHJULSVDQGD
FDUU\KDQGOH&ORVHLQGHVLJQWRWKH0(LVWKH0'GHVLJQHGIRUPRXQWLQJLQKHOLFRSWHUVDVDGRRUJXQQHUNLW$QGRIFRXUVHWKH86
1DY\QHHGHGLWVRZQSLQWOHPRXQWHGYHUVLRQIRUXVHDERDUGVPDOOZDWHUFUDIWDQGLWKDGWREHXQLTXHIURPWKHUHVW8QOLNHWKHRWKHUEUDQFKHV
RI WKH PLOLWDU\ ZKR KDG SXUFKDVHG FRQILJXUDWLRQV GHYHORSHG E\ )1 +HUVWDO WKH 1DY\ EXLOW LWV RZQ YDULDQW RI WKH ZHDSRQ IURP SDUWV LW
SXUFKDVHGUDWKHUWKDQEX\LQJFRPSOHWHZHDSRQV7KH01XVHVWKHEDUUHORIWKH'DQG*PRGHOVWKHSLVWROJULSWULJJHUDVVHPEOHRIWKH%
DQG*PRGHOVDQGWKHEXWWVWRFNDQGEXIIHUDVVHPEO\RIWKH0%+RZHYHU)1+HUVWDODGGHGWKH01WRLWVSURGXFWOLQHRQDQXQRIILFLDO
EDVLV$VWKHZDURQWHUURULVPUDPSHGXSWKH86$UP\¶V7DQN$XWRPRWLYHDQG$UPDPHQWV&RPPDQGLVVXHGDFRQWUDFWWRVXSSO\WRGHOLYHU
01VEHWZHHQ'HFHPEHUDQG1RYHPEHUDVDQXUJHQWUHTXLUHPHQW
[ 2NI[N 12MZ2O%2[JN
:KLOHWKH0ZDVRULJLQDOO\DSXUHO\YHKLFOH
:HDSRQ 01
PRXQWHG ZHDSRQ V\VWHP WKH ZHDSRQ KDG DQ
0DQXIDFWXUHU )1+HUVWDO <HDU 
XQSUHFHGHQWHG PRGXODULW\ DOORZLQJ )1 WR DOVR SURYLGH
DQ ³HJUHVV NLW´ 7KLV LV D EDJ RI FRQYHUVLRQ SDUWV WKDW 1DWLRQ %HOJLXP8QLWHG6WDWHV
DOORZVDYHKLFOHFUHZWRDEDQGRQWKHLUYHKLFOHEXWWDNH &DOLEHU [PP1$72 0DJV %HOW
WKH 0 ZLWK WKHP DQG XVH LW DV D IOH[LEOH PHGLXP $FFXUDF\ *URXS FP#P 02$
PDFKLQH JXQ LQ D VHOIGHIHQVH UROH 7KH HJUHVV NLW .LOO 3HQ
FRQVLVWVRIDEXWWVWRFNWULJJHU DVVHPEO\SLVWROJULS DQG 9HORFLW\ PV (QHUJ\
ELSRG 7KLV HJUHVV NLW HYHQWXDOO\ OHDG WR WKH 0 :HLJKW (PSW\ NJ 52) 66 
EHFRPLQJ DQ LQIDQWU\ ZHDSRQ LQ WKH ¶V 7KH 86 /RDGHG NJ 0% 
$UP\ ZDV WKH ILUVW WR DGRSW DQ LQIDQWU\ YHUVLRQ RI WKH /HQJWK PP %XUVW 
0 GHVLJQDWHG DV WKH 0% 7KLV YHUVLRQ RI WKH 5DQJH (IIHFWLYH P $XWR 
0 LV ILWWHG ZLWK D IRUHDUP JULS DVVHPEO\ FRPSOHWH 0D[ P &\FOLF 
ZLWK D KHDW VKLHOG EDUUHO VKURXG FDUU\ KDQGOH WULJJHU 1RWHV /RDGHGZHLJKWUHIOHFWVDURXQGEHOW
DVVHPEO\ZLWKSLVWROJULS %XWWVWRFNZLWKK\GUDXOLFUHFRLO
EXIIHUDQGDKHIW\ ELSRG 7KH 0DULQHV ODWHLQ DGRSWLQJ :HDSRQ 0(
WKH 0 IRU WKHLU LQIDQWU\ RSWHG IRU WKH ZHDSRQ 0DQXIDFWXUHU )1+HUVWDO <HDU 
GHVLJQDWHG WKH 0* D OLJKWHU YHUVLRQ RI WKH LQIDQWU\ 1DWLRQ %HOJLXP8QLWHG6WDWHV
PRGHOWKDWKDVQRKHDWVKLHOGHQVKURXGLQJWKHEDUUHORU &DOLEHU [PP1$72 0DJV %HOW
EXIIHU DQG LV ILWWHG ZLWK DQ DGDSWHU IRU PRXQWLQJ QLJKW $FFXUDF\ *URXS FP#P 02$
YLVLRQHTXLSPHQW7KHELSRGLVXVHGLQHLWKHUWKHRSHQRU .LOO 3HQ
IROGHG SRVLWLRQ DV D IRUH JULS LQ WKH VWHDG RI WKH KHDW 9HORFLW\ PV (QHUJ\
JXDUGIRUHDUPDVVHPEO\RIWKH0% :HLJKW (PSW\ NJ 52) 66 
7KLV PD\VRXQG OLNHD ORW RIYDULDQWVEXWLW LV /RDGHG NJ 0% 
PRUH D PDWWHU RI PRGXODULW\ 6RPHRQH FRXOG VFURXQJH /HQJWK PP %XUVW 
EDWWOHILHOGUXLQVSXOOWKHUHFHLYHURIDQ0&ILWLWZLWK 5DQJH (IIHFWLYH P $XWR 
WKHVSDGHJULSWULJJHUDVVHPEO\RIDQ0'WKHEDUUHO 0D[ P &\FOLF 
RIDQ0WKHELSRGRIDQ0%DQGWKHQLJKWYLVLRQ /RDGHGZHLJKWUHIOHFWVDURXQGEHOWLQDQDPPXQLWLRQ
DGDSWHU RI WKH 0* $W WKH ZHDSRQ¶V FRUH LV D ER[WKDWFOLSVWRWKHVLGHRIWKHZHDSRQNJ(JUHVV
UHFHLYHU DVVHPEO\ ILOOHG ZLWK WKH DFWLRQ RI WKH 0 1RWHV
NLWDGGVNJDQGH[WHQGVWKHZHDSRQ¶VOHQJWKWR
%URZQLQJ $XWRPDWLF 5LIOH IOLSSHG XSVLGH GRZQ DQG PP
DGDSWHG WR D EHOW IHHG PHFKDQLVP 7R WKLV UHFHLYHU
HYHU\WKLQJ HOVH LV DWWDFKHG WKH WULJJHU DVVHPEO\ ZLWK :HDSRQ 0$*
JULSEDUUHOVJDVWXEHIHHGPHFKDQLVPVLJKWLQJV\VWHP 0DQXIDFWXUHU )1+HUVWDO <HDU 
DGDSWHUV 7KH ZHDSRQ LV PDGH RI DV PDQ\ VWHHO 1DWLRQ %HOJLXP
VWDPSLQJV DQG SUHVVHG SDUWV DV SRVVLEOH JUHDWO\ &DOLEHU [PP1$72 0DJV %HOW
UHGXFLQJ WKH FRVW EXW UHVXOWLQJ LQ DQ DQJXODU EXVLQHVV
$FFXUDF\ *URXS FP#P 02$
OLNH DSSHDUDQFH 7KH ZHDSRQ LV DOVR KHDY\ RQ WKH
.LOO 3HQ
FKURPHSODWLQJZLWKWKHLQVLGHRIWKHUHFHLYHUWKHEDUUHO
OLQLQJDQGVHYHUDORWKHULQWHUQDOFRPSRQHQWVSODWHGZLWK 9HORFLW\ PV (QHUJ\
FKURPHWREHWWHUZLWKVWDQGWKHIRXOLQJDQGZHDUDQGWHDU :HLJKW (PSW\ NJ 52) 66 
RI ILULQJ &KDPEHUHG WR 1$72¶V PP FDOLEHU WKH /RDGHG NJ 0% 
0 RQ DYHUDJH ILUHV  URXQGV RI DPPXQLWLRQ /HQJWK PP %XUVW 
EHIRUH LW VXIIHUV D SDUWV IDLOXUH DFFRUGLQJ WR WKH 5DQJH (IIHFWLYH P $XWR 
PDQXIDFWXUHU %HLQJ ULYHWHG DQG ZHOGHG WKH UHFHLYHU 0D[ P &\FOLF 
LWVHOI EHJLQV IDLOLQJ DURXQG  URXQGV 7KH JXQ ZLOO 1RWHV /RDGHGZHLJKWUHIOHFWVDURXQGEHOW
FRQWLQXH RSHUDWLQJ DW WKLV SRLQW XQWLO DW VRPH SRLQW
EHWZHHQ  DQG  URXQG ILUHG WKH ULYHWHG :HDSRQ .VS0DXVHU
VLGHSODWHIDLOVDQGWKH HQWLUHDFWLRQ HMHFWVLWVHOIRXWWKH 0DQXIDFWXUHU )1+HUVWDO <HDU 
VLGH RI WKH UHFHLYHU ZLWK WKH QH[W URXQG ILUHG 7KLV 1DWLRQ %HOJLXPIRU6ZHGHQ
SDUWLFXODUSUREOHPEHFDPHDSSDUHQWLQWKH¶VGXULQJ &DOLEHU [PP0DXVHU 0DJV %HOW
WKH FLYLO ZDUIDUH DQG UHEHOOLRQ LQ (O 6DOYDGRU ZKHUH $FFXUDF\ *URXS FP#P 02$
ZHDSRQPDLQWHQDQFHWRRNWKHEDFNVHDWRQWKHEXV .LOO 3HQ
7KH0%DQG0*ZHDSRQVXVHVDORQJ 9HORFLW\ PV (QHUJ\
VWURNH SLVWRQ JDV V\VWHP ZLWK WZR UHJXODWRUVHWWLQJV IRU :HLJKW (PSW\ NJ 52) 66 
DQG USPF\FOLFVHWWLQJV7KHVHVHWWLQJVDUHQRW /RDGHG NJ 0% 
PHDQW WR VHOHFW D UDWH RIILUH IRU FRPEDW EXW LQVWHDG WR /HQJWK PP %XUVW 
FRPSHQVDWH IRU WKH IRXOLQJ DQG GHEULV WKDW EXLOGV XS 5DQJH (IIHFWLYH P $XWR 
LQVLGHWKHZHDSRQLQFRPEDW6ZLWFKLQJWKHVHWWLQJWDSV 0D[ P &\FOLF 
PRUHJDVDVWKHJXQILUHVWRWKHKLJKHUUDWHRIILUHWDSV 1RWHV /RDGHGZHLJKWUHIOHFWVDURXQGEHOW
PRUHJDVIURPWKHILULQJRIDURXQGDOORZLQJWKHJXQWR
RYHUFRPHWKHMDPPLQJSUREOHPVWKDWFRXOGRFFXUIURPIRXOLQJLQWKHJXQ7KH01XVHVDVOLJKWO\GLIIHUHQWUHJXODWRUZLWKDQGUSP
VHWWLQJV7KHYHKLFOHPRXQWHG0VDQG0&VXVHDGLIIHUHQWJDVV\VWHPWKDWGRHVQRWYHQWDQ\JDVRXWRIWKHJXQDVH[KDXVWZKLFK
ZRXOGTXLFNO\FUHDWHDSRWHQWLDOO\OHWKDOO\FRQWDPLQDWHGHQYLURQPHQW LQVLGHDYHKLFOH$OOJDVJHQHUDWHGE\WKHJXQYHQWVRXWWKHEDUUHO7KH
JDVUHJXODWRURQWKLVV\VWHPSURYLGHVWKUHHVHWWLQJVDOORZLQJWKHJXQQHUWRVHOHFWDUDWHRIILUHRIHLWKHURUURXQGVSHUPLQXWH
7KH 0DULQHV SD\  IRU WKHLU 0*V ZKLOH WKH YDVW UHDUPDPHQW SURJUDP RI WKH 86 $UP\ WR ILW WKH 0 RQ LWV WHQV RI
WKRXVDQGVRIYHKLFOHVDVZHOODVUHSODFLQJWKRXVDQGVRI0*30*VDOORZHGWKHPWRSXUFKDVHWKHEXONRIWKHLU0PRGHOVDWDSULFHRI
$UP\UHSODFHPHQWFRVWVKRZHYHUDUHDVKLJKDVWKH0DULQHVDWWKLVSRLQWDW
 [ 2NI[N 12MZ2O%2[JN
2IWKHPDQ\YDULDQWVRIWKH0WKH0*
:HDSRQ /$*HQHUDO3XUSRVH0DFKLQHJXQ
ILHOGHGE\WKH860DULQHVLVWKH FORVHVWWRWKH0$*
0DQXIDFWXUHU 5R\DO2UGLQDQFH3/& <HDU 
DV LW ZDV ILUVW GHSOR\HG LQ  7KHVH ZHDSRQV ZHUH
PDGH RI DV PDQ\ SDUWV PLOOHG IURP VROLG VWHHO DV 1DWLRQ *UHDW%ULWDLQ
SRVVLEOH DV RSSRVHG WR WKH ODWHU 3HQWDJRQPDQGDWHG &DOLEHU [PP1$72 0DJV %HOW
FRVWFXWWLQJ PHDVXUHV WKDW OHDG WR WKH VWDPSHG DQG $FFXUDF\ *URXS FP#P 02$
ZHOGHG FRPSRQHQWV FRPPRQ WRGD\ 7KH 0$* DOVR .LOO 3HQ
XVHV DPRUH DGYDQFHG H[KDXVWW\SH JDV SLVWRQ V\VWHP 9HORFLW\ PV (QHUJ\ -
ZLWKDIRXUSRVLWLRQUHJXODWRUZKLFKDOORZVWKHUDWHRIILUH :HLJKW (PSW\ NJ 52) 66 
WR EH VHW WR  IXOO\ RSHQ   DQG D KLJKO\ /RDGHG NJ 0% 
VWUHVVIXO  IXOO\ FORVHG URXQGV SHUPLQXWH 0V /HQJWK PP %XUVW 
DUH PDQXIDFWXUHG WR DFFHSW WKH 86 0 'LVLQWHJUDWLQJ 5DQJH (IIHFWLYH P $XWR 
OLQN EHOW ZKLOH 0$* V DUH PDQXIDFWXUHG WR DFFHSW 0D[ P &\FOLF 
HLWKHU WKH 86 0 GLVLQWHJUDWLQJ OLQN EHOWV RU WKH /RDGHGZHLJKWUHIOHFWVDURXQGEHOWRI%ULWLVK
*HUPDQ'0QRQGLVLQWHJUDWLQJEHOW0RGHOVPDGHWRILUH 1RWHV PDQXIDFWXUHZKLFKZHLJKVNJFRPSDUHGWRWKH
WKH'0EHOWVFDQEH PRGLILHGWRXVHWKH0EHOWVEXW NJRIWKH$PHULFDQHTXLYDOHQW
DWDFRVWRIUHOLDELOLW\
7KH )1 0$* LV XVHG E\ D ZLGH UDQJH RI :HDSRQ &*HQHUDO3XUSRVH0DFKLQHJXQ
QDWLRQV DURXQG WKH ZRUOG LQFOXGLQJ PRVW RI WKH QDWLRQV 0DQXIDFWXUHU )1+HUVWDO <HDU 
RI 1$72 0DQ\ RI WKRVH QDWLRQV DOVR ILHOG WKHLU RZQ
1DWLRQ 86IRU&DQDGD
YDULDQWVRIWKHZHDSRQDVZHOO
&DOLEHU [PP1$72 0DJV %HOW
7KH %ULWLVK GHVLJQDWH WKH VHULHV DV WKH /
VHULHV*HQHUDO3XUSRVH0DFKLQH*XQZKLFKGXULQJWKH $FFXUDF\ *URXS FP#P 02$
WULDOVWRUHSODFHWKH0SURYHGLQIHULRUWRWKHVWDQGDUG .LOO 3HQ
0$*  $IWHU WKLV ORVV LQ WKH FRPSHWLWLRQ WKH ZHDSRQ 9HORFLW\ PV (QHUJ\ -
ZDVPRGLILHG SDUWLFXODUO\ WKH IHHG PHFKDQLVP LQWR WKH :HLJKW (PSW\ NJ 52) 66 
VXSHULRU /$ YHUVLRQ /$V ZHUH LVVXHG ZLWK  /RDGHG NJ 0% 
URXQGEHOWV RIDPPXQLWLRQZKLOH /$VDUHLVVXHG ZLWK /HQJWK PP %XUVW 
URXQGEHOWVLQDPPXQLWLRQER[HVWKDWFOLSWRWKHVLGH 5DQJH (IIHFWLYH P $XWR 
RI WKHPDFKLQHJXQ 0D[ P &\FOLF 
7KH &DQDGLDQV GHVLJQDWH LW DV WKH & /RDGHGZHLJKWUHIOHFWVDURXQGEHOWZKLFKZHLJKV
1RWHV
PDFKLQH JXQ ZKLFK DUH YLUWXDOO\ LGHQWLFDO WR WKH 0 NJ
VHULHV JLYLQJ WKH &DQDGLDQV DOPRVW FRPSOHWH SDUWV
FRPSDWLELOLW\ZLWK86LQYHQWRULHV7KH&DQDGLDQVLVVXH
WKHLU&*30*VZLWKURXQGDPPXQLWLRQEHOWV
6ZHGHQGHVLJQDWHV LWDVWKH.VS DQG ZKHQ RULJLQDOO\ILHOGHG LQXVHG DYHUVLRQFKDPEHUHGIRUWKH [ PP 0DXVHU
FDUWULGJH2QFHWKH$.ZDVDGRSWHGDVWKH6ZHGLVKDVVDXOWULIOHWKH.VSVZHUHDOOUHILWWHGWR1$72¶V[PPFDUWULGJH$PPXQLWLRQ
LVLVVXHGLQEHOWVRIURXQGVXVXDOO\LQDQDPPXQLWLRQER[FRQWDLQLQJILYHEHOWV
$OO YHUVLRQV RI WKH )1 0$* DQG 0 VXIIHU D VLQJOH VHULRXV SUREOHP LQ WKH IDVKLRQ LQ ZKLFK WKH ELSRG LV DWWDFKHG XVLQJ D SLQ
SDVVLQJWKURXJKWKHJDVWXEH)UHTXHQWO\RYHUORRNHGXQOHVVWKHELSRG DQGWKLVSLQLVUHPRYHGLWLVLPSRVVLEOHWRFOHDQWKHHQGRIWKHJDV
WXEHZKHQSHUIRUPLQJDIXOO\FOHDQLQJDQGJHQHUDOPDLQWHQDQFHRIWKHZHDSRQ'HEULVZLOOEXLOGXSHYHQWXDOO\FORJJLQJWKHHQWLUHHQGRIWKH
JDVWXEHDQGIXVLQJDURXQGWKHELSRGUHWDLQLQJSLQDGYHUVHO\DIIHFWLQJWKHZHDSRQ¶VSHUIRUPDQFHDQGPDNLQJLWYHU\GLIILFXOWWRUHPRYHWKH
ELSRGWRILQDOO\FOHDQWKHZHDSRQSURSHUO\
[ 2NI[N 12MZ2O%2[JN
 [ 2NI[N 12MZ2O%2[JN
&\EHUWKULOOHU
(IIHFW :HLJKW :HLJKW
5DWHRI 5DQJH (PSW\ /RDGHG
:HDSRQ 7\SH $&& &RQ $Y &DOLEHU '0 $PPR )LUH 5HO PHWHUV NJ NJ &RVW
0 +9<  1 0 1   95    
>$%@
0& +9<  1 0 1   95    
>$@
0' +9<  1 0 1   95    
>&@
0( +9<  1 0 1   95    
0% +9<  1 0 1   >$%@
95    
>$@
0* +9<  1 0 1   95    
>&@
>$%@
01 +9<  1 0 1   >$@ 95    
>&@
0$* +9<  1 0 1   >$%@ 95    
.VS 1$72 +9<  1 0 1   >$@ 95    
.VS0DXVHU +9<  1 0 0   >&@ 95    
& +9<  1 0 1   >$%@ 95    
>$@
/$ +9<  1 0 1   95    
>&@
7\SLFDOPD[LPXPHIIHFWLYHUDQJHLVPHWHUVIRUSRLQWWDUJHWILUHDQGPHWHUVIRUDUHDWDUJHWILUH 7KHZHDSRQVFDQDOVREHXVHGWR
6SHFLDO5XOHV
SURYLGHJULGEDVHG YROXPHRIILUH LQGLUHFWILUHVXSSRUWDFFXUDWHO\WRDUDQJHRIPHWHUV

'6\VWHP
'DPDJH 5DQJH 5DWHRI 3XUFKDVH
:HDSRQ 'DPDJH &ULWLFDO 7\SH ,QFUHPHQW )LUH 0DJ 6L]H :HLJKW '& 5HVWULFWLRQ
0 G  %DOOLVWLF  $ % /UJ OE  0LO
0& G  %DOOLVWLF  $ % /UJ OE  0LO
0' G  %DOOLVWLF  $ % /UJ  OE  0LO
0( G  %DOOLVWLF  $ % /UJ OE  0LO
0% G  %DOOLVWLF  $ % /UJ OE  0LO
0* G  %DOOLVWLF  $ % /UJ OE  0LO
01 G  %DOOLVWLF  $ % /UJ OE  0LO
0$* G  %DOOLVWLF  $ % /UJ OE  0LO
.VS 1$72 G  %DOOLVWLF  $ % /UJ  OE  0LO
.VS0DXVHU G  %DOOLVWLF  $ % /UJ OE  0LO
& G  %DOOLVWLF  $ % /UJ OE  0LO
/$ G  %DOOLVWLF  $ % /UJ OE  0LO
7\SLFDOPD[LPXPHIIHFWLYHUDQJHLVPHWHUVIRUSRLQWWDUJHWILUHDQGPHWHUVIRUDUHDWDUJHWILUH 7KHZHDSRQVFDQDOVR
6SHFLDO5XOHV
EHXVHGWRSURYLGHJULGEDVHG YROXPHRIILUH LQGLUHFWILUHVXSSRUWDFFXUDWHO\WRDUDQJHRIPHWHUV

)8'*(
:HDSRQ 6KRWV 5DWHRI)LUH 5DQJH $FF\ 'PJ &RVW 1RWHV
0  $& 6XSHUE *UHDW  
0&  $& 6XSHUE *UHDW  
0'  $& 6XSHUE *UHDW  
0(  $& 6XSHUE *UHDW  
0%  $& 6XSHUE *UHDW  
0*  $& 6XSHUE *UHDW  
01  $& 6XSHUE *UHDW  
0$*  $& *UHDW *UHDW  
.VS 1$72  $& *UHDW *UHDW  
.VS0DXVHU  $& *UHDW *UHDW  
&  $& 6XSHUE *UHDW  
/$  $& 6XSHUE *UHDW  
6SHFLDO5XOHV
[ 2NI[N 12MZ2O%2[JN
$FWLRQ
675 0D[
:HDSRQ 'PJ 7\SH $FF 5PRG 5R) $PP :W &RVW 1RWHV
0LQ 5QJ
0D[LPXP52)FDQEH
0 G 3/        
VHWWRRU
0D[LPXP52)FDQEH
0& G 3/        
VHWWRRU
0D[LPXP52)FDQEH
0' G 3/        
VHWWRRU
0D[LPXP52)FDQEH
0( G 3/        
VHWWRRU
0D[LPXP52)FDQEH
0% G 3/        
VHWWR RU
0D[LPXP52)FDQEH
0* G 3/        
VHWWR RU
0D[LPXP52)FDQEH
01 G 3/        
VHWWR RU
0D[LPXP52)FDQEH
0$* G 3/        
VHWWRRU
0D[LPXP52)FDQEH
.VS 1$72 G 3/        
VHWWRRU
0D[LPXP52)FDQEH
.VS0DXVHU G 3/        
VHWWRRU
0D[LPXP52)FDQEH
& G 3/        
VHWWR RU
0D[LPXP52)FDQEH
/$ G 3/        
VHWWR RU
6SHFLDO5XOHV 7\SLFDOPD[LPXPHIIHFWLYHUDQJHLVPHWHUVIRUSRLQWWDUJHWILUHDQGPHWHUVIRUDUHDWDUJHWILUH 7KHZHDSRQVFDQDOVREH
XVHGWRSURYLGHJULGEDVHG YROXPHRIILUH LQGLUHFWILUHVXSSRUWDFFXUDWHO\WRDUDQJHRIPHWHUV
 [2KJA212[-.2R[N
:LWKWKHUHWLUHPHQWRIWKHFDOLEHU%URZQLQJ
:HDSRQ 6$:0/0*
$XWRPDWLF 5LIOH LQ WKH 
V WKH 86 $UP\ FUHDWHG D
0DQXIDFWXUHU )10DQXIDFWXULQJ <HDU 
YRLG LQ LWV DUVHQDO IRU D VTXDG OHYHO ZHDSRQ WKDW ZRXOG
IXQFWLRQDVDEDVHRIILUH$WWKHWLPHLWZDVKRSHGWKDW 1DWLRQ 8QLWHG6WDWHV
WKH0FDUELQHVWKHQLQVHUYLFHZRXOGVXLWWKDWSXUSRVH URXQGER[
&DOLEHU [PP66 0DJV
EXWWKH\IDLOHGPLVHUDEO\DWWKHWDVNDVGLGWKH0WKDW URXQGEHOW
IROORZHG OHVV WKDQ  \HDUV ODWHU )RU D WLPH WKH 0 $FFXUDF\ *URXS FP#P 02$
PHGLXPPDFKLQHJXQZDVDVVLJQHGWRWKHWDVNRI6TXDG .LOO 3HQ
$XWRPDWLF:HDSRQEXWLWSURYHGWREHWRRFXPEHUVRPH 9HORFLW\ PV (QHUJ\ -
WRUHDGLO\ILHOGRQDVTXDGOHYHO$VWKH9LHWQDP:DUZDV :HLJKW (PSW\ NJ 52) 66 
ZLQGLQJGRZQWRDFORVHWKH0$ZDVJLYHQDQRWKHU /RDGHG NJ 0% 
FKDQFH LQ WKH IRUP RI WKH 0$ /0* ZKLFK ZDV D /HQJWK PP %XUVW 
ZHDSRQ ZLWK JUHDW SRWHQWLDO WKDW ZDV RXWZHLJKHG E\ LWV 5DQJH (IIHFWLYH P $XWR 
QXPHURXVSUREOHPV RU
0D[ P &\FOLF
)LQDOO\ DIWHU WKH 9LHWQDP :DU HQGHG WKH 86 
$UP\ WUXO\ IRFXVHG RQ ILQGLQJ WKH ULJKW EDVH RI ILUH ([WUDEDUUHOZHLJKVNJ7KH6SDUHKHDWVKLHOGEDUUHO
1RWHV
ZHDSRQRQHWKDWZDVDFFXUDWHDQGFDSDEOHRIVXUYLYLQJ DQGEDUUHOEDJSDFNDJHZHLJKVLQDWNJ
VXVWDLQHGILUHWRLVVXHRQWKHVTXDGOHYHODQGWKH\ZHUH
KLJKO\ VXFFHVVIXO DW LW 2YHU WKH FRXUVH RI D ILYH \HDU :HDSRQ )10LQLPL
SHULRG EHWZHHQ  DQG  WKH )1 +HUVWDO 0LQLPL 0DQXIDFWXUHU )1+HUVWDO <HDU 
ZDVGHYHORSHGDVZDVWKH66URXQGGHVLJQHGIRULW 1DWLRQ %HOJLXP
7KH 66 ZDV DGRSWHG E\ 1$72 DV LWV VWDQGDUG OLJKW URXQGER[
FDOLEHUPXQLWLRQLQFRPSHWLWLRQVVSDQQLQJWR &DOLEHU [PP66 0DJV
URXQGEHOW
DQG WKH 0LQLPL /LJKW 0DFKLQHJXQ GHVLJQ ZDV ILQDOL]HG $FFXUDF\ *URXS FP#P 02$
DQG VHOHFWHG DV WKH 86 $UP\
V 6TXDG $XWRPDWLF .LOO 3HQ
:HDSRQ LQ  SHQGLQJ VRPH $UP\VSHFLILF 9HORFLW\ PV (QHUJ\ -
DOWHUDWLRQV 7KH IDFWRU\ FXVWRPL]HG 0LQLPL GHVLJQDWHG
:HLJKW (PSW\ NJ 52) 66 
DV WKH 6TXDG $XWRPDWLF :HDSRQ 0 /LJKW 0DFKLQH
/RDGHG NJ 0% 
*XQZDVILQDOO\LVVXHGWRWKH86$UP\DQG860DULQHV
/HQJWK PP %XUVW 
LQUHSODFLQJWKHDJLQJ0$/0*VRQD RQHIRU
RQHEDVLVIRUERWKLQIDQWU\XQLWVDQGRWKHUXQLWVUHTXLULQJ 5DQJH (IIHFWLYH P $XWR 
KLJK ILUHSRZHU 7KH PLOLWDU\ ZDV GHVSHUDWH IRU WKLV RU
0D[ P &\FOLF
ZHDSRQ WKDQNV WR WKH DPPXQLWLRQ FRQVHUYDWLRQ SROLF\ 
WKDW OHDG WR PRVW 0 ULIOHV EHLQJ FRQYHUWHG WR WKUHH 1RWHV 2OGYHUVLRQEHIRUH)1+HUVWDOVZLWFKHGWR0VSHFV
URXQGEXUVWZHDSRQV7KHFXVWRPL]DWLRQVGHPDQGHGE\
WKH8QLWHG6WDWHV$UP\UHVXOWHGLQWKH0EHLQJRYHU :HDSRQ 0LQLPL3DUD
DNLORJUDPOLJKWHUWKDQWKHVWDQGDUG0LQLPLOLJKWPDFKLQH 0DQXIDFWXUHU )10DQXIDFWXULQJ <HDU 
JXQ $ORQJ ZLWK WKHVH FKDQJHV WKH 0 UHWDLQV D 1DWLRQ 8QLWHG6WDWHV
QXPEHU RI WKH VWDQGDUG 0LQLPL IHDWXUHV LQFOXGLQJ URXQGER[
&DOLEHU [PP66 0DJV
FKURPH OLQHG EDUUHOV WR UHGXFH ZHDU DQG FRUURVLRQ D URXQGEHOW
FOHDQLQJ NLW VWRUHG LQ WKH UHPRYDEOH KDQGJXDUG DQG D $FFXUDF\ *URXS FP#P 02$
UHPRYDEOHWULJJHUJXDUGIRUZLQWHURSHUDWLRQVZLWKKHDY\ .LOO 3HQ
JORYHV 9HORFLW\ PV (QHUJ\
7KH 0 6$: LV D OLJKWZHLJKW DLUFRROHG :HLJKW (PSW\ NJ 52) 66 
JDVRSHUDWHG LQGLYLGXDOO\ SRUWDEOH PDFKLQH JXQ IHG E\ /RDGHG NJ 0% 
HLWKHUER[PDJD]LQHRUURXQGGLVLQWHJUDWLQJPHWDOOLF /HQJWK PPPPFROODSVHG %XUVW 
OLQNEHOWFDSDEOHRIGHOLYHULQJDODUJHYROXPHRIHIIHFWLYH 5DQJH (IIHFWLYH P $XWR 
ILUH)LULQJIURPDQRSHQ EROWDJDVUHJXODWRUDOORZVLWWR RU
ILUHDWHLWKHUDQRUPDOUDWHRIURXQGVSHUPLQXWHRU 0D[ P &\FOLF

DPD[LPXPUDWHRI URXQGVSHUPLQXWH7KLV LV LV 1RWHV
YHU\ PXFK OLNH WKH UHJXODWRU YDOXH RQ WKH 6RYLHW
GHVLJQHG3.0DVPD[LPXPLVDXWKRUL]HGIRUXVHRQO\ :HDSRQ 0LQLPL63:
LI WKH ZHDSRQ
V ILULQJ UDWH LV VORZHG E\ DGYHUVH
0DQXIDFWXUHU )10DQXIDFWXULQJ <HDU 
FRQGLWLRQV ,Q RWKHU ZRUGV MXVW OLNH WKH 3.0 WKH 0
1DWLRQ 8QLWHG6WDWHV
FDQKDYHDVZLWFKIOLSSHGVRWRVSHDNWRPDNHLWVKRRW
KDUGHUDQGIDVWHUZKHQSURORQJHGILULQJZLWKRXWFOHDQLQJ URXQGER[
&DOLEHU [PP 66 0DJV
VWDUWV WR PDNH WKH JXQ WRR GLUW\ WR XVH HIIHFWLYHO\ 7KH URXQGEHOW
ZHDSRQ
VUHFRLO LVOLJKWHQRXJKIRUWKH RSHUDWRUWR ILUHLW $FFXUDF\ *URXS FP#P 02$
IURPWKHVKRXOGHUKLSRUXQGHUDUPSRVLWLRQDVZHOODVD .LOO 3HQ
ELSRGVWHDGLHG SURQH SRVLWLRQ ,Q W\SLFDO XVH WKH 0 9HORFLW\ PV (QHUJ\
6$: LV XVHG WR HQJDJH GLVPRXQWHG LQIDQWU\ FUHZ :HLJKW (PSW\ NJ 52) 66 
VHUYHG ZHDSRQV $7*0 WHDPV DQG WKLQVNLQQHG /RDGHG NJ 0% 
YHKLFOHV /HQJWK PPPPFROODSVHG %XUVW 
$ORQJ ZLWK GHSOR\PHQW DV D 6TXDG $XWRPDWLF 5DQJH (IIHFWLYH P $XWR 
:HDSRQ WKH 0 DOVR VHHV GXW\ DV D OLJKW PDFKLQH 0D[ P &\FOLF 
JXQ FRPSOHWH ZLWK D WULSRI WUDYHUVH  HOHYDWLRQ 7 ( 1RWHV
PHFKDQLVP DQG D VSDUH EDUUHO 8QIRUWXQDWHO\ WKH
0V DUH QRW PDQXIDFWXUHG WR TXLWH H[DFWLQJ
VWDQGDUGVWKHEDUUHOVFDQQRWEHLQWHUFKDQJHGEHWZHHQZHDSRQVZLWKRXWKDYLQJDTXDOLILHGWHFKQLFLDQSHUIRUPDKHDGVSDFHDGMXVWPHQWRQWKH
VZDSSHGEDUUHOILUVW:KHQXVHGDVDPDFKLQHJXQWKHVHLWHPVLQFUHDVHVWKHVWDELOLW\WKHDELOLW\WRPDNHPLQXWHDGMXVWPHQWVLQDLPLQJDQG
WKHDELOLW\WRILUHJUHDWHUWKDQWKUHHURXQGEXUVWV%HFDXVHPDFKLQHJXQVDUHQRWDVPRELOHDVDXWRPDWLFULIOHVWKH\QRUPDOO\UHPDLQZLWKDQG
IRUPWKHNH\ZHDSRQRIWKHEDVHRIILUHHOHPHQW,WLVSRVVLEOHWREULQJDPDFKLQHJXQZLWKWKHPDQHXYHUHOHPHQWIRUDGGHGILUHSRZHULQWKH
DVVDXOW%XWRQFHLWKDVVHWXSLWEHFRPHVDQRWKHUEDVHRIILUHDQGLVTXLFNO\OHIWEHKLQGE\WKHUHVWRIWKHHOHPHQWDVLWVZHHSVDFURVVWKH
REMHFWLYH,W ZLOO VSHQG PRUHWLPH GLVSODFLQJ WKDQ ILULQJ 0DFKLQH JXQV WDUJHW HQHP\ DXWRPDWLF ZHDSRQV NH\ ZHDSRQV DQG FRPPDQG DQG
[2KJA212[-.2R[N
FRQWURO HOHPHQWV 2QFH WKH HQHP\ GHSOR\V PDFKLQH
:HDSRQ 063:03DUD6$:
JXQVHQJDJHKLVVXSSRUWLQJ DXWRPDWLF ZHDSRQV $VWKH
HQHP\FORVHVLIWKHPDFKLQHJXQVKDYHGHVWUR\HGDOORI 0DQXIDFWXUHU )10DQXIDFWXULQJ <HDU 
WKH HQHP\
V VXSSRUWLQJ ZHDSRQV WKH\ FDQ HQJDJH WKH 1DWLRQ 8QLWHG6WDWHV
DVVDXOWLQJWURRSVZLWKHQILODGLQJILUHVDFURVVWKHSODWRRQ URXQGER[
&DOLEHU [PP66 0DJV
IURQW URXQGEHOW
$VDQDXWRPDWLFULIOHWKH06$:DOORZVD $FFXUDF\ *URXS FP#P 02$
ULIOHVTXDGWRWDNHDOLJKWDXWRPDWLFZHDSRQZLWKWKHPDV .LOO 3HQ
WKH\ DVVDXOW DQ REMHFWLYH ,Q WKH GHIHQVH WKH\ DGG WKH 9HORFLW\ PV (QHUJ\
ILUHSRZHURIWHQWRWZHQW\ULIOHPHQZLWKRXWWKHDGGLWLRQRI :HLJKW (PSW\ NJ 52) 66 
IXUWKHUPDQSRZHU&KDUDFWHULVWLFDOO\DXWRPDWLFULIOHVDUH /RDGHG NJ 0% 
OLJKW ILUH UDSLGO\ DQG DUH LVVXHG ZLWK PRUH DPPXQLWLRQ /HQJWK PPPPFROODSVHG %XUVW 
WKDQ WKHULIOHV LQWKHVTXDGWKH\VXSSRUW(DFKVTXDG LV 5DQJH (IIHFWLYH P $XWR 
LVVXHG WKUHH DXWRPDWLF ULIOHV 1R DGGLWLRQDO HTXLSPHQW 0D[ P &\FOLF 
FRQILJXUDWLRQLVQHHGHGEHFDXVH WKHDXWRPDWLFULIOHPDQ 1RWHV
ILUHV WKH 0 HLWKHU IURP WKH ELSRG PRGH RU IURP
YDULRXV KDQGKHOG SRVLWLRQV ,Q HLWKHU WKH RIIHQVH RU :HDSRQ 0N0RG/LJKW0DFKLQH*XQ
GHIHQVH DXWRPDWLF ULIOHPHQ PXVW UHVWULFW WKHPVHOYHV WR
0DQXIDFWXUHU )1 0DQXIDFWXULQJ <HDU 
ILULQJ WKUHHURXQG EXUVWV WR PDLQWDLQ WKHLU HIIHFWLYHQHVV
1DWLRQ 8QLWHG6WDWHV
DJDLQVWHQHP\WDUJHWV7KH0 LQWKHELSRG RUKDQG
KHOG PRGH PRYHV WRR HDVLO\ RII LWV SRLQW RI DLP DIWHU URXQGER[
&DOLEHU [PP66 0DJV
WKUHHURXQGV DQG DXWRPDWLF ULIOHPHQPXVWUHDGMXVWWKHLU URXQGEHOW
DLP ,Q WKH RIIHQVH WKH DXWRPDWLF ULIOHPDQ LV OLPLWHG WR $FFXUDF\ *URXS FP#P 02$
ZKDWKHFDQFDUU\DQGILUHRQWKHPRYH+HQFHZKLOHWKH .LOO 3HQ
DXWRPDWLFULIOHDIIRUGVDKLJKYROXPHRIILUHLWDOVRUDSLGO\ 9HORFLW\ PV (QHUJ\
FRQVXPHVDPPXQLWLRQ&RQVHUYDWLRQDQGFDUHIXOORJLVWLF :HLJKW (PSW\ NJ 52) 66 
SODQQLQJDUHDEVROXWHO\YLWDO /RDGHG NJ 0% 
*HWWLQJ EDFN WR WKH )1 +HUVWDO 0LQLPL  WKH /HQJWK PPPPFROODSVHG %XUVW 
0LQLPLLVWKH(XURSHDQYHUVLRQRIWKHULIOHHVVHQWLDOO\DV 5DQJH (IIHFWLYH P $XWR 
)1 RULJLQDOO\ GHVLJQHG LW 7KH DFWLRQ RI WKH ZHDSRQ LV 0D[ P &\FOLF 
VFDOHG GRZQ IURP WKH )1 +HUVWDO 0$* D PP 1RWHV
PDFKLQH JXQ 7KH 0LQLPL FDQ XVH ERWK 67$1$*
FRPSOLDQW PP PDJD]LQHV DQG EHOW IHHG 7R LQLWLDOO\
VHUYHXQLWVUHTXLULQJDZHDSRQIRUFORVHTXDUWHUVFRPEDW)1PDQXIDFWXUHGDVKRUWHUEDUUHOFRPSDWLEOHZLWKWKH0LQLPL¶VTXLFNFKDQJHEDUUHO
V\VWHPDQGWKHEXWWVWRFNFRXOGEHUHPRYHGDQGUHSODFHGZLWKDIROGLQJRQH)1+HUVWDOKDVVLQFHFKDQJHGWKH(XURSHDQ0LQLPLWRPDWFKWKH
ZHLJKWVSHFLILFDWLRQVDQGFRQVWUXFWLRQRIWKH06LQFHWKHQWKH0LQLPLKDVXQGHUJRQHDJUHDWGHDORIFKDQJH
(DUO\ LQ YDULDQW GHYHORSPHQW FDPH WKH 0LQLPL 3DUD ZKLFK WRRN WKH SDUWVFRQYHUVLRQV IRU D PRUH FRPSDFW 0LQLPL DQG FRPELQHG
WKHPZLWK0FRQVWUXFWLRQUHVXOWLQJLQDSDUDWURRSZHDSRQZLWKIXOOFRPSDWLELOLW\ZLWKWKH0DQG0LQLPLDVZHOODVDZHDSRQFDSDEOHRI
YHKLFOHDQGWULSRGPRXQWLQJ

7KH 0LQLPL 63: LV D

GLUHFW GHULYDWLYH RI WKH 0
GHVLJQHGIRUXVHLQFORVHTXDUWHUV
FRPEDW DQG E\ 6SHFLDO
2SHUDWLRQV XQLWV ZKR RIWHQ QHHG
FRPSDFW ILUHSRZHU 7KLV GHVLJQ
GRHVQRWGHYLDWHVLJQLILFDQWO\IURP
WKHIXOOVL]H 0LQLPL6$:ZLWKWKH
PDMRU FKDQJHV EHLQJ DQ HYHQ
VKRUWHU EDUUHO WKDQ WKH 0LQLPL
3DUD DQG D WHOHVFRSLQJ VWRFN
DORQJ ZLWK WKH DGGLWLRQDO RI
3LFDWLQQ\ UDLOV 7KH ZHDSRQ LV
RIWHQ IXUWKHU PRGLILHG E\ WKH
SXUFKDVLQJ PLOLWDULHV WKURXJK WKH
UHPRYDO RI WKH WKH IRUHVWRFN DQG
ILWWLQJ D YHUWLFDO KDQGJULS LQ LWV
SODFH 7KH 63: KDV RQO\ EHHQ
RIILFLDOO\ DGRSWHG E\ WKH 8QLWHG
6WDWHVDQG ZKLOH LQVRPHIRUHLJQ
PLOLWDU\ DUVHQDOV LW KDV OLWWOH
SRSXODULW\HOVHZKHUH7KLVYHUVLRQ
RIWKH0LQLPLFDQQRWEHPRXQWHGRQDWULSRGRUYHKLFOH
7KH0LQLPL63:ZDVIROORZHGE\WKH063:7KH063:DOVRNQRZQDVWKH03DUD6$:LVD0LQLPL6$:WKDWKDV
EHHQPRGLILHGIRUDIXUWKHUUHGXFWLRQLQZHLJKWE\VWULSSLQJSDUWVIURPLW7KHPRVWVLJQLILFDQWFKDQJHLVWKDWWKH063:FDQQRWIHHGIURP
PDJD]LQHV,WLVEHOWIHGRQO\
7KHUHLVRQHILQDOYHUVLRQRIWKH0LQLPL$VXVXDOWKH861DY\6($/VDUHDOPRVWQHYHUVDWLVILHGZLWKWKHZHDSRQVSURYLGHGE\WKH
PLOLWDU\ 7R WKDW HQG WKH 86 1DY\ GRHV WU\ WR JHW WKH ZHDSRQV WKDW EHVW PHHW WKH QHHGV RI LWV HOLWH WURRSV 7KH 0 63: ZDV KHDYLO\
PRGLILHG7KHTXLFNFKDQJHEDUUHOV\VWHPZDVDOWHUHGWKDQNVWRDSURWRFROWKDWFDOOVIRUWKHGLVFDUGLQJRIKRWEDUUHOV:LWKQRQHHGWRKDQGOH
KRWEDUUHOVDQ\ORQJHUWKHFDUU\KDQGOHFRXOGEHHOLPLQDWHG7KHIRUHVWRFNZDVRXWILWWHGZLWKDUDLOV\VWHPDVWKHUHFHLYHUZDVILWWHGZLWKDUDLO
IRUVFRSHV7KHEDUUHOVDUHILWWHGZLWKDQ0IODVKVXSSUHVVRUDQGDUHWKUHDGHGWRDFFHSWDQRLVHVXSSUHVVRUZKLFKLVQRUPDOO\LVVXHGZLWK
WKHULIOH)LQDOO\LQZKDWLVSUREDEO\RQHRIWKHPRVWLQQRYDWLYHGHFLVLRQVPDGHDERXWDQ\JXQLQWKHSDVWWHQ\HDUVHYHU\VXUIDFHRIHYHU\
SDUWRIWKHZHDSRQLVFRDWHGLQ7HIORQWRUHGXFHZHDU FRUURVLRQDQGWRSURYLGHGU\OXEULFDWLRQ
[2KJA212[-.2R[N
[2KJA212[-.2R[N
&\EHUWKULOOHU
(IIHFW :HLJKW :HLJKW
5DWHRI 5DQJH (PSW\ /RDGHG
:HDSRQ 7\SH $&& &RQ $Y &DOLEHU '0 $PPR )LUH 5HO PHWHUV NJ NJ &RVW
06$: +9<  1 0 1   5(    
)1+HUVWDO0LQLPL +9<  1 0 1   >$%@ 5(    
)1+HUVWDO0LQLPL3DUD +9<  1 0 1   RU>&@ 5(    
)1+HUVWDO0LQLPL63: +9<  1 0 1   5(    
063:3DUD6$: +9<  1 0 1   >$%@ 5(    
0N0RG +9<  1 0 1   >&@ 95    
6SHFLDO5XOHV

'6\VWHP
'DPDJH 5DQJH 5DWHRI 3XUFKDVH
:HDSRQ 'DPDJH &ULWLFDO 7\SH ,QFUHPHQW )LUH 0DJ 6L]H :HLJKW '& 5HVWULFWLRQ
06$: G  EDOOLVWLF  $ % /UJ OE  0LO
)1+HUVWDO0LQLPL G  EDOOLVWLF  $ % /UJ OE  0LO
)1+HUVWDO0LQLPL3DUD G  EDOOLVWLF  $ % /UJ OE  0LO
)1+HUVWDO0LQLPL63: G  EDOOLVWLF  $ % /UJ OE  0LO
063:3DUD6$: G  EDOOLVWLF  $ % /UJ OE  0LO
0N0RG G  EDOOLVWLF  $ % /UJ OE  0LO
6SHFLDO5XOHV 7KH0N0RGYHUVLRQRIWKLVZHDSRQVKRXOGEHFRQVLGHUHGD0DVWHUFUDIWZHDSRQ

)8'*(
:HDSRQ 6KRWV 5DWHRI)LUH 5DQJH $FF\ 'PJ &RVW 1RWHV
06$:  $& 6XSHUE 7HUULEOH  
)1+HUVWDO0LQLPL  $& 6XSHUE 7HUULEOH  
)1+HUVWDO0LQLPL3DUD  $& 6XSHUE 7HUULEOH  
)1+HUVWDO0LQLPL63:  $& )DLU 7HUULEOH  
063:3DUD6$:  $& )DLU 7HUULEOH  
0N0RG  $& )DLU 7HUULEOH   :HOOFUDIWHG
6SHFLDO5XOHV

$FWLRQ
675 0D[
:HDSRQ 'PJ 7\SH $FF 5PRG 5R) $PP :W &RVW 1RWHV
0LQ 5QJ
06$: G 3/     RU   
)1+HUVWDO0LQLPL G 3/     RU   
)1+HUVWDO0LQLPL3DUD G 3/     RU   
)1+HUVWDO0LQLPL63: G 3/     RU   
063:3DUD6$: G 3/        
0N0RG G 3/        
6SHFLDO5XOHV
 [2µW%2N+¶ [JJAK
7KH 0 0XOWLUROH $QWLDUPRU $QWLSHUVRQQHO
:HDSRQ 00$$:65HFRLOOHVV5LIOH
:HDSRQ 6\VWHP RU 0$$:6  FRQVLVWV RI WKH 6ZHGLVK
0DQXIDFWXUHU %RIRUV:HDSRQ6\VWHPV <HDU 
PDGH%RIRUV0³&DUO*XVWDY´VKRXOGHUILUHGUHFRLOOHVVULIOH
DQG D IDPLO\ RI PP URFNHWSURSHOOHG PXQLWLRQV 7KH 1DWLRQ 6ZHGHQ
V\VWHP ZDV ILUVW ILHOGHG E\ WKH 86 $UP\¶V 5DQJHUV DV D &DOLEHU PP5RFNHW 0DJV 
OLJKWZHLJKWXQJXLGHGZHDSRQWRUHSODFHWKH0UHFRLOOHVV $FFXUDF\ *URXS 02$
ULIOHWKHFRQIXVLQJYDULHW\RI0/$:6LQVHUYLFHDVZHOO .LOO 3HQ
DV UHGXFLQJ WKH UHOLDQFH RQ WKH XQZLHOG\ 0 'UDJRQ 9HORFLW\ PV (QHUJ\
0 $7V DQG 0V 7KH V\VWHP HQWHUHG VHUYLFH LQ :HLJKW (PSW\ NJ 52) 66 
 DQG KDV VLQFH VSUHDG WKURXJK 62&20 WR EHFRPH /RDGHG NJ 0% 
VWDQGDUG HTXLSPHQW IRU WKH 86 1DY\¶V 6($/ WHDPV DV /HQJWK PP %XUVW 
ZHOO 2XWVLGH 62&20DVVRFLDWHG XQLWV WKH ZHDSRQ LV 5DQJH (IIHFWLYH P $XWR 
NQRZQ DV WKH 0 5$$:6 5DQJHU $QWLDUPRU $VVDXOW 0D[ P &\FOLF 
:HDSRQ6\VWHP&XUUHQWO\WKHUHLVDSXVKIRUZLGHVSUHDG $FRPSOHWHNLWRIUHFRLOOHVVULIOHVLJKWWKUHHURXQGVRI
1RWHV
LQWURGXFWLRQ RI WKH 0 V\VWHP LQWR WKH 86 $UP\ ILUVW WR DPPXQLWLRQDQGUHODWHGJHDUZHLJKLQDWNJ
WKH$LUERUQHGLYLVLRQVWKHQWRWKH,QIDQWU\GLYLVLRQV,IVXFK
RFFXUV WKH ZHDSRQ ZRXOG UHSODFH WKH YDVW PDMRULW\ RI :HDSRQ 05HFRLOOHVV5LIOH
/$:V'UDJRQV0$7VDQG0V\VWHPVLQVHUYLFH 0DQXIDFWXUHU %RIRUV:HDSRQ6\VWHPV <HDU 
DVZHOODVWKH60$:VRQORDQIURPWKH860&
1DWLRQ 6ZHGHQ
:KLOH WKH V\VWHP LV D UHFHQW DGGLWLRQ WR WKH
&DOLEHU PP5RFNHW 0DJV 
DUVHQDOVRIWKH 86PLOLWDU\ LWPRVWFHUWDLQO\ LV QRWD QHZ
ZHDSRQ V\VWHP 7KH %ULWLVK WRRN WKH ZHDSRQ ZLWK WKHP $FFXUDF\ *URXS 02$
ZKHQWKH\ZHQWWRZDUDJDLQVW$UJHQWLQDRYHUWKH)DONODQG .LOO 3HQ
,VODQGVLQ 7KH ZHDSRQ ZDVXVHGWRJUHDWHIIHFW QRW 9HORFLW\ PV (QHUJ\
RQO\DJDLQVW$UJHQWLQHEXQNHUVDQGIL[HGSRVLWLRQVEXWZDV :HLJKW (PSW\ NJ 52) 66 
DOVRXVHGWRDOPRVWVLQNDQ$UJHQWLQHIULJDWH /RDGHG NJ 0% 
7KH05HFRLOOHVV5LIOHZHLJKVNJDQGLVMXVW /HQJWK PP %XUVW 
RYHUDPHWHULQOHQJWK$ZLGHYDULHW\RIPXQLWLRQVDUHXVHG 5DQJH (IIHFWLYH P $XWR 
E\WKH86%ULWLVKDQG&DQDGLDQJRYHUQPHQWV$ORQJZLWK 0D[ &\FOLF 
WKH0UHFRLOOHVVULIOHZKLFKLVWKHPRVWUHFHQWOLJKWZHLJKW $FRPSOHWHNLWRIUHFRLOOHVVULIOHVLJKWIRXUURXQGVRI
1RWHV
YHUVLRQWKH\V\VWHPKDGHDUOLHUXVHGWKH0³&DUO*XVWDY´ DPPXQLWLRQDQGUHODWHGJHDUZHLJKLQDWNJ
UHFRLOOHVV ULIOH D KHDYLHUPRUHFXPEHUVRPH ODXQFKHU ILUVW
GHSOR\HGLQWKH¶V7KH0ZDVPDGHOLJKWHUE\QRWRQO\UHGXFLQJWKHZHDSRQ¶VRYHUDOOOHQJWKEXWFRQYHUWLQJWRDULIOHGVWHHOOLQHUWXEH
DQGVWHHOYHQWXULZUDSSHGZLWKDFDUERQILEHUVKHOOZLWKWKHUHVWRIWKHZHDSRQEHLQJPDGHRIDOXPLQXPDQGSODVWLFSDUWV
%\GHIDXOW86WURRSVILWWKH0ZLWKWKH3LFDWLQQ\)LUH&RQWURO'HYLFH3)&'ZKLFKZDVGHYHORSHGDWWKH3LFDWLQQ\$UVHQDODWWKH
UHTXHVWRI WKH5DQJHUV7KHRULJLQDO %RIRUV)LUH&RQWURO 'HYLFHZDVDWZRFDP GHVLJQFRYHULQJ WKH+($7 DQG +(URXQGVZLWKDVHFRQG
NQREWRDGMXVWIRUWKH+('3URXQGV5DQJHUVGRQ¶WOLNHKDYLQJWRSOD\ZLWKDEXQFKRINQREVLQWKHKHDWRIEDWWOHVRWKH3LFDWLQQ\$UVHQDO
GHYHORSHGDQHZ)&'ZLWKDVLQJOHUDQJHDGMXVWPHQWNQREWKDWFDPVLQWRWKUHHVHSDUDWHSRVLWLRQVWRDFFRXQWIRUEDOOLVWLFGLIIHUHQFHVEHWZHHQ
WKH +($7 +( DQG +('3 URXQGV 7KH XQLW FDQ DOVR EH ILWWHG ZLWK QLJKW VLJKWLQJ HTXLSPHQW DV ZHOO 7KH &DQDGLDQ DUPHG IRUFHV ILHOG WKH
ZHDSRQ ZLWK DVLPSOH [WHOHVFRSLFVLJKWWKDWSURYLGHD GHJUHHDQJOHRI YLHZRUD[WHOHVFRSLFVLJKWWKDW SURYLGHVDGHJUHH ILHOG RI
YLHZ
7KH HQWLUH ZHDSRQ LV IXOO\ FDSDEOH RI EHLQJ DLUGURSSHG DQG LV VZLPPDEOH DV ZHOO $PPXQLWLRQ LV WUDQVSRUWHG LQ D KDUG SODVWLF
ZDWHUWLJKWVOLQJSDFNWKDWKROGVWZRURXQGVRIDPPXQLWLRQ
[2µW%2N+¶ [JJAK
[2[--
+($7
7KH+($7 LVDQDQWLDUPRUPXQLWLRQXVLQJDWDQGHPFKDUJHWHFKQRORJ\EDVHGRQWKH
0XQLWLRQ +($7 FRPELQHG HIIHFW RI DQ H[SORVLYHO\ IRUPHG SHQHWUDWRU DQG KROORZ FKDUJH 7KH PXQLWLRQ LV
FDSDEOHRISHQHWUDWLQJH[SORVLYHUHDFWLYHDUPRUWLOHVZLWKRXWLQLWLDWLQJWKHWLOH¶VH[SORVLYH
7\SH +($77
WKHQ DOORZV WKH PDLQ FKDUJH WR EODVW WKURXJK WKH DUPRU SURWHFWLRQ OHDYLQJ PDVVLYH
'LUHFW)LUH5DQJH P
LQWHUQDOGDPDJH
0D[LPXP9HORFLW\ PV
:HLJKW NJ
3HQHWUDWLRQ PP
%ODVW5DGLXV P

+($7
7KH+($7LVD EDVLF VKDSHG FKDUJHDQWLDUPRUPXQLWLRQ$EOH WRUHDFKWDUJHWVWRD
0XQLWLRQ +($7 UDQJHRIPHWHUVLWLVHIIHFWLYHDJDLQVWDOOEXWWKHPRVWKHDYLO\DUPRUHGWDQNV,WLVDOVR
7\SH +($7 KLJKO\HIIHFWLYH DJDLQVWRWKHU KDUGWDUJHWVVXFK DVFRQFUHWHEXQNHUVODQGLQJFUDIWVORZ
'LUHFW)LUH5DQJH P ORZIO\LQJDLUFUDIWDQGVPDOOZDUVKLSV
0D[LPXP9HORFLW\ PV
:HLJKW NJ
3HQHWUDWLRQ PP
%ODVW5DGLXV P

+('3
7KLVLVDGXDOSXUSRVH+(+($7PXQLWLRQRSWLPL]HGIRUFRPEDWLQEXLOWXS XUEDQDUHDV,W
0XQLWLRQ +('3 LVHIIHFWLYHDJDLQVWOLJKWDUPRUHGYHKLFOHVFRQFUHWHDQGEULFNZDOOVILHOGIRUWLILFDWLRQVDQG
7\SH +('3 HQHP\WURRSV(IIHFWLYHDJDLQVWPRYLQJWDUJHWVWRPHWHUVVWDWLRQDU\WDUJHWVWRP
'LUHFW)LUH5DQJH P DQGXVHIXOIRULQGLUHFWILUHRXWWRPHWHUV
0X]]OH9HORFLW\ PV
:HLJKW NJ
3HQHWUDWLRQ PP
%ODVW5DGLXV P

+(%
7KLVKLJKH[SORVLYHIUDJPHQWLQJURXQGFDQEHVHWIRUHLWKHULPSDFWGHWRQDWLRQRUDLUEXUVWPDNLQJLWHIIHFWLYHDJDLQVWWURRSVLQWKHRSHQDQG
XQGHU FRYHU DV ZHOO DV VRIWVNLQQHG YHKLFOHV DQG VLPLODU WDUJHWV 8SRQ GHWRQDWLRQ WKH
0XQLWLRQ +(% VKHOO IUDJPHQWV LQWR DSSUR[LPDWHO\  SLHFHV RI VKUDSQHO HDVLO\ VKUHGGLQJ DQ\
7\SH +( XQSURWHFWHGPDWHULDOVLQWKHDUHDRIEODVWHIIHFW
'LUHFW)LUH5DQJH P
0X]]OH9HORFLW\ PV
:HLJKW NJ
3HQHWUDWLRQ 
%ODVW5DGLXV P

$'0
7KH $'0  DUHD GHIHQVH PXQLWLRQ LV GHVLJQHG IRU XVH LQ WLJKW FRQGLWLRQV FRPPRQ LQ
0XQLWLRQ $'0 MXQJOHDQGXUEDQZDUIDUH:KHQILUHGUDWKHUWKDQODXQFKLQJDURFNHWWKHURXQGH[SORGHV
7\SH $UHD'HIHQVH)OHFKHWWH ODXQFKLQJIOHFKHWWHVLQDGLVWULEXWLRQSDWWHUQWKDWSXWVWRIOHFKHWWHVSHUVTXDUH
'LUHFW)LUH5DQJH P PHWHUDWDGLVWDQFHRIPHWHUVWKHPD[LPXPHIIHFWLYHUDQJH7KHURXQGLVH[WUHPHO\
0X]]OH9HORFLW\ PV HIIHFWLYHDJDLQVWXQDUPRUHGWURRSV
:HLJKW NJ
3HQHWUDWLRQ 
%ODVW5DGLXV &RQHPEDVHPO
 [2µW%2N+¶ [JJAK
,OOXP
7KLV LV D SDUDFKXWH LOOXPLQDWLRQ IODUH &DSDEOH RI UHDFKLQJ UDQJHV RI XS WR  PHWHUV
0XQLWLRQ $'0 DZD\ WKH URXQG EXUVWV DW  PHWHUV SURYLGLQJ  FDQGHOOD LOOXPLQDWLRQ RYHU DQ
7\SH $UHD'HIHQVH)OHFKHWWH DUHD RI  WR  PHWHUV LQ GLDPHWHU 7KH LOOXPLQDWLRQ ODVWV DERXW  VHFRQGV DV WKH
'LUHFW)LUH5DQJH P URXQGGULIWVWRWKHJURXQG
0X]]OH9HORFLW\ PV
:HLJKW NJ
3HQHWUDWLRQ 
%ODVW5DGLXV &RQHPEDVHPO

6PRNH%
)LWWHG ZLWK DQ LPSDFW IXVH WKLV URXQG XVHV  NJ RI WLWDQLXP WHWUDFKORULGH WR
0XQLWLRQ 602.($'0% LQVWDQWDQHRXVO\ H[SORGH LQWR D GHQVH VPRNHVFUHHQ VXLWDEOH IRUVSRWWLQJ VFUHHQLQJ DQG
7\SH 6PRNH REVFXUHPHQW SUDFWLFHV $ VLQJOH URFNHW SURGXFHV D VXIILFLHQWO\ GHQVH FORXG WR FRYHU WKH
'LUHFW)LUH5DQJH P PRYHPHQWRIDIXOOSODWRRQRIWDQNV
0X]]OH9HORFLW\ PV
:HLJKW NJ
3HQHWUDWLRQ 
%ODVW5DGLXV &ORXGPGLDPPKW

))9
7KH ))9 LV D +($7 URXQG FXUUHQWO\ H[FOXVLYH WR WKH 6ZHGLVK PLOLWDU\ ,W LV D KHIW\
0XQLWLRQ ))9 PP RYHUFDOLEHU URFNHW WKDW ILUHV IURP WKH 0 UHFRLOOHVV ULIOH 7KLV VLQJOH URFNHW LV
7\SH +($7 GHVLJQHG WR NHHS WKH 0 0$$:6 V\VWHP FRPSHWLWLYH ZLWK WKH ODWHVW JHQHUDWLRQ RI
$7*0V FDSDEOH RI SHQHWUDWLQJ RYHU PP RI DUPRU +RZHYHU WKH LPPHQVH ZDUKHDG
'LUHFW)LUH5DQJH P
UHTXLUHGIRUWKLVJUHDWO\UHGXFHVWKHRYHUDOOHIIHFWLYHUDQJHRIWKHURFNHWWRDPHUHKDOIRI
0D[LPXP9HORFLW\ PV
WKHRWKHU+($7URXQGV
:HLJKW NJ
3HQHWUDWLRQ PP
%ODVW5DGLXV P
[2µW%2N+¶ [JJAK
&\EHUWKULOOHU
(IIHFW :HLJKW :HLJKW
5DWHRI 5DQJH (PSW\ /RDGHG
:HDSRQ 7\SH $&& &RQ $Y &DOLEHU '0 $PPR )LUH 5HO PHWHUV NJ NJ &RVW
00$$:6 +9<  1 0    >66@ 5(    
00$$:6 +9<  1 0    >66@ 5(    
3(1
+($7    0        
GP
3(1
+($7    0        
GP
3(1
+('3    0        
GP
+(%    0 G        
$'0    0        
,//80    0         
602.(%    0         
3(1
))9    0        
GP
6SHFLDO5XOHV $'0$Q\WDUJHWVLQWKHOLQHRIILUHRIWKLVZHDSRQZLOOVXIIHU'KLWVHDFKKLWFDXVLQJGGDPDJH

'6\VWHP
'DPDJH 5DQJH 5DWHRI 3XUFKDVH
:HDSRQ 'DPDJH &ULWLFDO 7\SH ,QFUHPHQW )LUH 0DJ 6L]H :HLJKW '& 5HVWULFWLRQ
00$$:6     66  /UJ OE  0LO
00$$:6     66  /UJ OE  0LO
3(1
+($7  )LUH    0HG OE  0LO
G¶
3(1
+($7  )LUH    0HG OE  0LO
G¶
3(1
+('3  )LUH    0HG OE  0LO
G¶
+(% G  6ODVKLQJ    0HG OE  0LO
$'0  6ODVKLQJ    0HG OE  0LO
,//80       0HG OE  0LO
602.(%       0HG OE  0LO
3(1
))9  )LUH    0HG OE  0LO
G¶
$'07KH$'0ILUHVIOHFKHWWHDPPXQLWLRQ7KLVDPPXQLWLRQLVGHVLJQHGWRIXQFWLRQDVWKHFORVHVWWKLQJWRDODVHUEDVHG
FRPEDWZHDSRQDVLVSRVVLEOHDWWKLVWLPHSURYLGLQJKLJKYHORFLW\FRPELQHGZLWKDYHU\IODWWUDMHFWRU\(YHQDWORQJHUUDQJHVD
VKRRWHUGRHVQ¶WUHDOO\ KDYHWRFRPSHQVDWHIRUWKHXVXDOIDFWRUVWKDWLQIOXHQFHEXOOHWVDWVXFKGLVWDQFHV(YHQPRUHIRUPLGDEOHLV
WKHIDFWWKDWIOHFKHWWHVFDQDOVREHILUHGHQPDVVHOLNHDVKRWJXQILULQJEXFNVKRW
0DQ\ VPDOOHU IOHFKHWWH ZHDSRQV WKDW ILUH HQ PDVVH DPPXQLWLRQ ZLOO IXQFWLRQ DOPRVW LGHQWLFDOO\ WR D VKRWJXQ ILULQJ VKRW
6SHFLDO5XOHV
DPPXQLWLRQ7KHFORXGRIIOHFKHWWHVZLOOQRWVXIIHUWKH±SHQDOW\WRKLWIRUHDFKUDQJHLQFUHPHQWDQGZLOOVXIIHUD±SHQDOW\RQ
GDPDJHIRUHDFKUDQJHLQFUHPHQW
7KH$'0RSHUDWHVGLIIHUHQWO\KRZHYHU7KHPXQLWLRQLVFDUHIXOO\GHVLJQHGWRJHQHUDWHDSDWWHUQWRWKHIOHFKHWWHVLW
ILUHV HQVXULQJ WKDW HYHU\ WDUJHW LQ WKH DUHD RI HIIHFW LV VWUXFN /HW HYHU\WKLQJ LQVLGH WKH DUHD RI HIIHFW VXIIHU G SRLQWV RI
GDPDJH

)8'*(
:HDSRQ 6KRWV 5DWHRI)LUH 5DQJH $FF\ 'PJ &RVW 1RWHV
00$$:6  66  0HGLRFUH  
00$$:6  66  )DLU  
+($7   *UHDW    )DLU3HQHWUDWLRQ
+($7   *UHDW    0HGLRFUH3HQHWUDWLRQ
+('3   *RRG    3RRU3HQHWUDWLRQ
+(%   6XSHUE   
$'0   7HUULEOH    6HH%HORZ
,//80   6XSHUE   
602.(%   6XSHUE   
))9   0HGLRFUH    6XSHUE3HQHWUDWLRQ
6SHFLDO5XOHV $'0FDXVHVGDPDJHWRHYHU\WKLQJLQVLGHDFRQHPHDVXULQJPHWHUVORQJDQGPHWHUVDWWKH
EDVH
 [2µW%2N+¶ [JJAK
$FWLRQ
675 0D[
:HDSRQ 'PJ 7\SH $FF 5PRG 5R) $PP :W &RVW 1RWHV
0LQ 5QJ
00$$:6  3/        
00$$:6  3/        
G
+($7 3/        
>@
G
+($7  3/        
>@
+('3 G>@ 3/        
+(% G 3/        
$IIHFWVHYHU\WKLQJLQLWV
$'0 G 3/         FRQHVKDSHGDUHDRIHIIHFW
PORQJPEDVH
,//80  3/        
602.(%  3/        
G
))9 3/        
>@
6SHFLDO5XOHV
 [212[J
7KH 0 &DUELQH LV RQH RI D ORQJ OLQH RI 0
:HDSRQ 0
EDVHGFDUELQHVGHYHORSHGE\&ROWVLQFHWKH
V,QIDFW
0DQXIDFWXUHU )10DQXIDFWXULQJ <HDU 
WKH 0 LVQ
W WKH ILUVW VXFK FDUELQH DGRSWHG E\ WKH 86
PLOLWDU\ EHLQJ SUHFHHGHG  GXULQJ WKH 
V E\ WKH 1DWLRQ 8QLWHG6WDWHV
;0(FDUELQH ZKLFKZDVEDVHGRQWKH&$5 7KH &DOLEHU [PP66 0DJV 
;0 GLG HYHQWXDOO\ JR LWV ZD\ LQWR WKH VXQVHW EXW ROG $FFXUDF\ *URXS FP 02$
LGHDV GLH KDUG 2QH LGHD WKDW UHJXODUO\ UHVXUIDFHV LV WR .LOO 3HQ
SURYLGH DQ DGHTXDWH ZHDSRQ IRU VHFRQGDU\ WURRSV 7KH 9HORFLW\ PV (QHUJ\
LGHD GDWHV EDFN WR :RUOG :DU ,, ZKHQ HQJLQHHUV FRRNV :HLJKW (PSW\ NJ 52) 66 
DQGWUXFNGULYHUVIUHTXHQWO\IRXQGWKHPVHOYHVLQWKHPLGGOH /RDGHG NJ 0% 
RIFRPEDWLQ(XURSHDQGWKHVXEPDFKLQHJXQVDQGSLVWROV /HQJWK PPZVWRFNFROODSVHG %XUVW 
WKH\ ZHUH SURYLGHG SURYHG WR EH UDWKHU LQHIIHFWLYH IRU 5DQJH (IIHFWLYH P $XWR 
SURWHFWLQJ WKHP 6R LQ  WKH $UP\ DGRSWHG WKH &ROW 0D[ &\FOLF 
0RGHO  VHOHFWLYHILUH FDUELQH DV WKH 0 LQWHQGLQJ WR 1RWHV
XVH LW DV D UHSODFHPHQW IRU D ZLGH QXPEHU RI 0 SLVWROV
0$ 60*V DQG D QXPEHU RI 0$ ULIOHV7KH RQO\ :HDSRQ 0$
GLIIHUHQFH EHWZHHQ WKH 0 DQG WKH 0$ LV WKH VKRUWHU 0DQXIDFWXUHU )10DQXIDFWXULQJ <HDU 
EDUUHODQGIRXUSRVLWLRQWHOHVFRSLQJEXWWVWRFNRIWKH0
1DWLRQ 8QLWHG6WDWHV
7KH 0 WXUQHG RXW WR EH D YHU\ KDQG\ DQG
&DOLEHU [PP66 0DJV 
FRPIRUWDEOH ZHDSRQ VR WKH 86 6SHFLDO 2SHUDWLRQV
&RPPDQG 62&20 WRRN D JRRG ORRN DW LW DV D SULPDU\ $FFXUDF\ *URXS FP 02$
ILUHDUP IRU WKH HQWLUH 86 PLOLWDU\ 6SHFLDO 2SHUDWLRQV .LOO 3HQ
FRPPXQLW\ 7KLV OHDG WR WKH SURGXFWLRQ RI WKH 0$ 9HORFLW\ PV (QHUJ\
FDUELQHZKLFKLVGHULYHGIURPWKH0$/LNHWKH0$ :HLJKW (PSW\ NJ 52) 66 
WKH 0$ KDV UHSODFHG LWV WKUHH URXQG EXUVW ZLWK D IXOO\ /RDGHG NJ 0% 
DXWRPDWLFILUHPRGH /HQJWK PPZVWRFNFROODSVHG %XUVW 
62&20OLNHGWKHLUOLWWOHULIOHVRPXFKWKDWWKH86 5DQJH (IIHFWLYH P $XWR 
1DYDO6XUIDFH:DUIDUH&HQWHUGHYHORSHGWKH62302'0 0D[ &\FOLF 
.LW 7KLV NLW FRQVLVWV RI DQ 0$ RXWILWWHG ZLWK D 5DLO 1RWHV
,QWHUIDFH 6\VWHP 5,6 LQ SODFH RI WKH VWDQGDUG
KDQGJXDUGV SOXV DQ DUUD\ RI DGGLWLRQDO DFFHVVRULHV WKDW :HDSRQ 0$62302'.LW
FDQ EH PRXQWHG RQ WKH KDQGJULS UDLOV RU WKH IODWRS VFRSH 0DQXIDFWXUHU )10DQXIDFWXULQJ <HDU 
UDLO 7KHVH DFFHVVRULHV LQFOXGH 5,6 KDQGJXDUG 1DWLRQ 8QLWHG6WDWHV
UHSODFHPHQWFRPEDWVOLQJVORSLQJ FKHHNZHOGVWRFNPLQL &DOLEHU [PP66 0DJV 
QLJKWVLJKWYHUWLFDOIRUZDUGSLVWROJULS$&2*[WHOHVFRSLF
$FFXUDF\ *URXS FP 02$
GD\OLJKW VLJKW $&2* UHG GRW UHIOH[LYH VLJKW GHWDFKDEOH
.LOO 3HQ
RSHQ LURQ EDFNXS VLJKWV YLVLEOH ODVHU SRLQWHU ,5 ODVHU
SRLQWHU GHWDFKDEOH VRXQG VXSSUHVVRU GHWDFKDEOH IURQW 9HORFLW\ PV (QHUJ\
JULS WDFWLFDO OLJKW DQG D PRGLILHG 0 JUHQDGH ODXQFKHU :HLJKW (PSW\ NJ 52) 66 
ZLWKDVKRUWHQHGEDUUHODQGVHSDUDWHLPSURYHGVLJKWV7KH /RDGHG NJ 0% 
62302' 0 .LW LV DFWXDOO\ DQ RXWJURZWK RI WKH 0 /HQJWK PPZVWRFNFROODSVHG %XUVW 
0RGXODU :HDSRQ 6\VWHP 0:6 SURJUDP FRPSOHWHG LQ 5DQJH (IIHFWLYH P $XWR 
:HDSRQVZLWKHLWKHUWKH0:6 RUWKH62302'NLWV 0D[ &\FOLF 
KDYHDWRWDORIILYHPRXQWLQJUDLOVDWWDFKHGWRWKHPRQHDW 1RWHV
WKHWUDGLWLRQDOFDUU\KDQGOHORFDWLRQSOXVIRXUUHSODFLQJWKH
IRUHJULSKDQJXDUG7KHVHIRXUDUHRUGLQDOO\SRVLWLRQHGRQH
HDFK WRS ERWWRP OHIW DQG ULJKW 7KH 62302' NLW UHSODFHV WKH RULJLQDO QRQVWDQGDUGL]HG 62302' V\VWHP GHYHORSHG EHWZHHQ  DQG
 7KH RQO\ WKLQJ VWDQGDUG DERXW WKDW ZDV WKH GXFWWDSH DQG KRVH FODPSV LQGLYLGXDO VROGLHUV XVHG WR DWWDFK DFFHVVRULHV WR WKHLU ORQJ
DUPV
&RPSDUHG WR WKH 62302' 0 .LW WKH 0:6 LV ILOOHG ZLWK D ULGLFXORXV QXPEHU RI RSWLRQV $ORQJ ZLWK D YDULHW\ RI XQGHUEDUUHO
ZHDSRQVDQGDQXQJRGO\QXPEHURIVHOHFWLRQVIRUMXVWLURQVLJKWVOHWDORQHVFRSHVWKHUPDOVLJKWVDQGQLJKWYLVLRQVLJKWV,WHYHQSURYLGHVIRU
VXFKWKLQJVDVVZLYHOVOLQJFOLSVIRUZDUG SLVWROJULSVIODVKOLJKWPRXQWVDQGPRUH7KH0:6ZDVGHYHORSHGE\.QLJKW$UPDPHQW&RPSDQ\
PHDQLQJWKLVEULJKWLGHDPD\YHU\ZHOOKDYHEHHQWKHUHVXOWRI(XJHQH6WRQHUWLQNHULQJZLWKWKHGHVLJQRIWKHJXQKH LVPRVWIDPRXVIRU

*HWWLQJEDFNWRWKH062&20FKRVHLWEHFDXVHWKHFODLPVPDGHDERXWWKHZHDSRQEHLQJOLJKWFRPSDFWKDQG\DQGDOPRVWDV
FDSDEOHDVWKH0$7KHZHDSRQZDVHIIHFWLYHRXWWRPHWHUVZLWKLURQVLJKWVDQGRXWDVIDUDVPHWHUVZLWKDVFRSHRUUHIOH[LYH
VLJKW8QIRUWXQDWHO\WKHZHDSRQZHQWXQWHVWHGIRUHLJKW\HDUVEHIRUHLWVDZDFWXDOFRPEDWDQGWKH86PLOLWDU\KDGVSHQWFORVHWRPLOOLRQ
WRSURFXUHVRPHRIWKHULIOH+RZHYHULQ$IJKDQLVWDQUHDOLW\VODSSHG62&20ULJKWDFURVVWKHIDFH'XHWRWKHZHDSRQ
VVKRUWHUEDUUHO
[212[J
DPPXQLWLRQILUHVDWDVLJQLILFDQWO\ORZHUPX]]OHYHORFLW\UHGXFLQJERWKLWVHIIHFWLYHQHVVDVZHOODVLWVDFFXUDF\7KHVHFRQGSUREOHPLVWKH
VKRUWHQLQJRIWKHEDUUHODOVRVKRUWHQHGWKHJDVV\VWHPUHVXOWLQJLQLWRSHUDWLQJXQGHUJUHDWHUVWUHVV7KLV LQWXUQVLJQLILFDQWO\LQFUHDVHVWKH
JXQ
VUDWHRIILUHZKLOHRYHUVWUHVVLQJWKHFRPSRQHQWVDQGUHGXFLQJUHOLDELOLW\7KLUGO\WKDQNVWRWKHLQFUHDVHGUDWHRIILUHWKHEDUUHODQGIRUHQG
KDQGJXDUGRYHUKHDWUDSLGO\
:KLOH WKHULIOH LVFRQVLGHUHGDGHTXDWH DVDSHUVRQDOGHIHQVHZHDSRQIRU QRQLQIDQWU\WURRSV OLNHYHKLFOHFUHZVFOHUNVDQGVWDII
RIILFHUV WKHUH LV D JURZLQJ VHQWLPHQW WKDW WKH 0$ LV IDU OHVV WKDQ LGHDO IRU 6SHFLDO )RUFHV RSHUDWLRQV DW OHDVW LQ LWV FXUUHQW VWDWH ,WV
SHUIRUPDQFHZLWK62&20KDVDOVRSUDFWLFDOO\QXOOLILHGWKHLGHDRIFRPSOHWHO\UHDUPLQJWKH86$UP\ZLWK0$VLQWKHSODFHRIDOO0V0
60*VDQGPRVW0SLVWROV+RZH[DFWO\WKLVZRXOGEHFRVWFXWWLQJLVEH\RQGPHVLQFHWKH0$FRVWVRYHUPRUHWKDQWKH0$RU
0$,VXSSRVHWKHFRVWFXWWLQJFRPHVLQWKHORQJUXQIURPXVLQJDVLQJOHFDOLEHUDPPXQLWLRQDQGRQHW\SHRIPDJD]LQH
 [212[J
&\EHUWKULOOHU
(IIHFW :HLJKW :HLJKW
5DWHRI 5DQJH (PSW\ /RDGHG
:HDSRQ 7\SH $&& &RQ $Y &DOLEHU '0 $PPR )LUH 5HO PHWHUV NJ NJ &RVW
>66@
0&DUELQH $5  7 0 1   5(    
>%@
>66@
0$&DUELQH $5  7 0 1   5(    
>$%@>&@
0$62302'.LW           YDULHV  
00:6%DVH.LW             
62302'.LWLQFOXGHVDFRPSOHWHVHWRIDFFHVVRULHVH[FOXGLQJWKH0196PLQLQLJKWYLVLRQVLJKW$OVRLQFOXGHVWKH0:6VWDQGDUGL]HG
6SHFLDO5XOHV EDVHNLW7KH00:6EDVHNLWLVVLPSO\WKH5,6IRUHJULSUHSODFHPHQWZLWKVOLQJDVHWRILURQVLJKWVFDUU\LQJKDQGOHDQGJULSVODWVIRUDOO
5,6UDLOV%X\\RXUZHDSRQVHSDUDWHO\

'6\VWHP
'DPDJH 5DQJH 5DWHRI 3XUFKDVH
:HDSRQ 'DPDJH &ULWLFDO 7\SH ,QFUHPHQW )LUH 0DJ 6L]H :HLJKW '& 5HVWULFWLRQ
0&DUELQH G  EDOOLVWLF  6%  0HG OE  0LO
0$&DUELQH G  EDOOLVWLF 6$  0HG OE  0LO
00:6%DVH.LW        OE  1RQH
0$62302'.LW        YDU  0LO
62302'.LWLQFOXGHVDFRPSOHWHVHWRIDFFHVVRULHVH[FOXGLQJWKH0196PLQLQLJKWYLVLRQVLJKW$OVRLQFOXGHVWKH0:6
6SHFLDO5XOHV VWDQGDUGL]HGEDVHNLW7KH00:6EDVHNLWLVVLPSO\WKH5,6IRUHJULSUHSODFHPHQWZLWKVOLQJDVHWRILURQVLJKWVFDUU\LQJ
KDQGOHDQGJULSVODWVIRUDOO5,6UDLOV%X\\RXUZHDSRQVHSDUDWHO\

)8'*(
:HDSRQ 6KRWV 5DWHRI)LUH 5DQJH $FF\ 'PJ &RVW 1RWHV
0&DUELQH  6$% )DLU *RRG  
0$&DUELQH  6$$& )DLU *RRG  
00:6%DVH.LW       $GGVVFRSHGERQXV
0$62302'.LW      
6SHFLDO5XOHV 62302' .LW LQFOXGHV D FRPSOHWH VHW RI DFFHVVRULHV H[FOXGLQJ WKH 0196 PLQL QLJKW YLVLRQVLJKW  $OVR LQFOXGHV WKH 0:6
VWDQGDUGL]HGEDVH NLW7KH 0 0:6EDVHNLWLVVLPSO\ WKH 5,6 IRUHJULS UHSODFHPHQWZLWK VOLQJ DVHWRILURQVLJKWVFDUU\LQJ
KDQGOHDQGJULSVODWVIRUDOO5,6UDLOV%X\\RXUZHDSRQVHSDUDWHO\

$FWLRQ
675 0D[
:HDSRQ 'PJ 7\SH $FF 5PRG 5R) $PP :W &RVW 1RWHV
0LQ 5QJ
0&DUELQH G 3/        
0$&DUELQH G 3/        
00:6%DVH.LW           $FF
0$62302'.LW          
6SHFLDO5XOHV 62302' .LW LQFOXGHV D FRPSOHWH VHW RI DFFHVVRULHV H[FOXGLQJ WKH 0196 PLQL QLJKW YLVLRQ VLJKW  $OVR LQFOXGHV WKH 0:6
VWDQGDUGL]HG EDVH NLW 7KH 0 0:6 EDVH NLW LV VLPSO\ WKH 5,6 IRUHJULS UHSODFHPHQW ZLWK VOLQJ D VHW RI LURQ VLJKWV FDUU\LQJ
KDQGOHDQGJULSVODWVIRUDOO5,6UDLOV%X\\RXUZHDSRQVHSDUDWHO\
 [
2L!-
7KH 0 'UDJRQ LV D PHGLXPUDQJH ZLUH
:HDSRQ 0'UDJRQ
JXLGHGOLQHRIVLJKWDVVDXOWPLVVLOHFDSDEOHRIGHIHDWLQJ
0DQXIDFWXUHU 0F'RQQHOO'RXJODV <HDU 
DUPRUHG YHKLFOHV IRUWLILHG EXQNHUV FRQFUHWH JXQ
HPSODFHPHQWV DQG RWKHU KDUG WDUJHWV ZLWK LWV VKDSHG 1DWLRQ 8QLWHG6WDWHV
FKDUJH ZDUKHDG 7KH 'UDJRQ ZDV GHYHORSHG E\ &DOLEHU PPPLVVLOH 0DJV VLQJOHVKRW
0F'RQQHOO'RXJODV $HURVSDFH LQ  IRU WKH 86 $FFXUDF\ *URXS 02$
$UP\7KHFRUHRI WKH0'UDJRQLVDFWXDOO\ DWUDFNHU .LOO 3HQ PP
V\VWHPZKLFKDWWDFKHVWRDPLVVLOHVWRUDJHODXQFKWXEH 9HORFLW\ PV (QHUJ\
7KH WXEH LV GLVSRVDEOH WKH WUDFNHU XQLW LV QRW 7KH :HLJKW (PSW\ 52) 66 
ODXQFKWXEHLVDVPRRWKERUHILEHUJODVVWXEHWRZKLFK WKH /RDGHG NJ 0% 
WUDFNHU DWWDFKHV 7KH WXEH LQFOXGHV D VXSSRUW ELSRG /HQJWK PP %XUVW 
EDWWHU\ VOLQJ DQG VKRFN DEVRUEHUV 7KH V\VWHP LV 5DQJH (IIHFWLYH P $XWR 
GHVLJQHG WR EH FDUULHG DQG GHSOR\HG E\ DQ LQGLYLGXDO 0D[ P &\FOLF 
JXQQHU 'D\VLJKWZHLJKVNJ7KHUPDOQLJKWWUDFNHUZLWK
6LQFH LWVLQWURGXFWLRQLQWKH'UDJRQKDV 1RWHV EDWWHULHVDQGJDVERWWOHZHLJKVNJ7KLVDSSOLHVWRDOO
EHHQ UHGHVLJQHG WZLFH 7KH ILUVW WLPH ZDV D 3URGXFW YHUVLRQVRIWKH'UDJRQ$7*0
,PSURYHPHQW 3URJUDP LQLWLDWHG E\ WKH 860& LQ 
7KLVSURJUDPUHVXOWHGLQWKH'UDJRQ,,EXWZDVDFWXDOO\ :HDSRQ 0$'UDJRQ,,
MXVW D ZDUKHDG UHILW WR WKH H[LVWLQJ PLVVLOH VWRFNSLOHV LQ 0DQXIDFWXUHU 0F'RQQHOO'RXJODV <HDU 
RUGHU WR LPSURYH SHUIRUPDQFH 7KLV ZDV IROORZHG E\ D
1DWLRQ 8QLWHG6WDWHV
VHFRQG ZDUKHDG UHILW XVLQJ D WDQGHP FKDUJH ZDUKHDG
&DOLEHU PPPLVVLOH 0DJV VLQJOHVKRW
7KH VHFRQG UHGHVLJQ UHVXOWHG LQ D YDVW LPSURYHPHQW LQ
WKH ZHDSRQ¶V UDQJH HIIHFWLYHO\ GRXEOLQJ WKH ZHDSRQ¶V $FFXUDF\ *URXS 02$
UDQJH .LOO 3HQ PP
7KH 'UDJRQ LV DQ H[SHQVLYH ZHDSRQ V\VWHP 9HORFLW\ PV (QHUJ\
7KHGD\WUDFNHUXQLWDORQHFRVWVWKH860&7KH :HLJKW (PSW\ 52) 66 
QLJKW WUDFNHU V\VWHP FRVWV  7KH PLVVLOHV /RDGHG NJ 0% 
WKHPVHOYHV KDYH EHHQ SULFHG LQ WKH  UDQJH /HQJWK PP %XUVW 
5HJDUGOHVV WKLV H[SHQVH WKH 860& LQYHQWRULHV  5DQJH (IIHFWLYH P $XWR 
GD\ WUDFNHUV  QLJKW WUDFNHUV DQG  PLVVLOHV 0D[ P &\FOLF 
7KH $86$ $UP\ RI WKH 8QLWHG 6WDWHV RI $PHULFD 1RWHV
LQYHQWRULHVWUDFNHUVDQGPLVVLOHV
$W WKLV SRLQW WKH 'UDJRQ LV XQLYHUVDOO\ :HDSRQ 0$'UDJRQ,,7DQGHP&KDUJH
PDOLJQHG HVSHFLDOO\ LQ WKH DUP\ DV LW LV D VORZ IO\LQJ 0DQXIDFWXUHU 0F'RQQHOO'RXJODV <HDU 
PLVVLOH UHTXLULQJ PRUH WKHQ  VHFRQGV WR UHDFK 1DWLRQ 8QLWHG6WDWHV
PD[LPXP UDQJH DQG LW LV DQ RSHUDWRUJXLGHG ZHDSRQ &DOLEHU PPPLVVLOH 0DJV VLQJOHVKRW
V\VWHPZKLFKNHHSVWKHRSHUDWRUYXOQHUDEOHDVDWDUJHW
$FFXUDF\ *URXS 02$
WRHQHP\ILUHZKLOHWKHPLVVLOHLVLQIOLJKW
.LOO 3HQ PP
6WDUWLQJ LQ WKH ODWH ¶V WKH PRUH FDSDEOH
DQG PRUH H[SHQVLYH -DYHOLQ $7*0 EHJDQ HQWHULQJ 9HORFLW\ PV (QHUJ\
VHUYLFH ZLWK ERWK WKH 860& DQG $86$ OHDGLQJ WR WKH :HLJKW (PSW\ 52) 66 
VORZ SKDVLQJ RXW RI WKH 'UDJRQ :KLOH WKH -DYHOLQ LV /RDGHG NJ 0% 
WKUHH WLPHV WKH SULFH RI WKH 'UDJRQ WKHUH DUH DOVR /HQJWK PP %XUVW 
XQJXLGHG V\VWHPVIDUFKHDSHUWKDQWKH 'UDJRQ DVZHOO 5DQJH (IIHFWLYH P $XWR 
7KLV PHDQV WKDW XQOLNH PDQ\ RWKHU SUHYLRXV DQWLDUPRU 0D[ P &\FOLF 
LQIDQWU\ ZHDSRQV WKDW EHFDPH GHPROLWLRQ WRROV WKH 1RWHV
'UDJRQ LV PRVW OLNHO\ WR EH HLWKHU F\FOHG RII WR WKH
1DWLRQDO *XDUG RU VROG RII RU JLYHQ DZD\ DV PLOLWDU\ :HDSRQ 0$6XSHU'UDJRQ
VXUSOXVWRWKLUGZRUOGQDWLRQV 0DQXIDFWXUHU 0F'RQQHOO'RXJODV <HDU 
1DWLRQ 8QLWHG6WDWHV
&DOLEHU PPPLVVLOH 0DJV VLQJOHVKRW
$FFXUDF\ *URXS 02$
.LOO 3HQ PP
9HORFLW\ PV (QHUJ\
:HLJKW (PSW\ 52) 66 
/RDGHG NJ 0% 
/HQJWK PP %XUVW 
5DQJH (IIHFWLYH P $XWR 
0D[ P &\FOLF 
1RWHV
[
2L!-
&\EHUWKULOOHU
(IIHFW :HLJKW :HLJKW
5DWHRI 5DQJH (PSW\ /RDGHG
:HDSRQ 7\SH $&& &RQ $Y &DOLEHU '0 $PPR )LUH 5HO PHWHUV NJ NJ &RVW
3(1
0'UDJRQ 0,6  1 0    95    
'P
3(1
0$'UDJRQ,, 0,6  1 0    95    
'P
3(1
0$'UDJRQ,,7DQGHP 0,6  1 0    95    
'P
3(1
0$6XSHU'UDJRQ 0,6  1 0    95    
'P
6SHFLDO5XOHV 3ULFHVEDVHGXSRQSXUFKDVHRIDPLVVLOHDQGGD\WUDFNHU6XEWUDFWWRREWDLQWKHPLVVLOHSULFH1LJKWWUDFNHULV

'6\VWHP
'DPDJH 5DQJH 5DWHRI 3XUFKDVH
:HDSRQ 'DPDJH &ULWLFDO 7\SH ,QFUHPHQW )LUH 0DJ 6L]H :HLJKW '& 5HVWULFWLRQ
3(1
0'UDJRQ  )LUH  66  /UJ OEV  0LO
G¶
3(1
0$'UDJRQ,,  )LUH  66  /UJ OEV  0LO
G¶
3(1
0$'UDJRQ,,7DQGHP  )LUH  66  /UJ OEV  0LO
G¶
3(1
0$6XSHU'UDJRQ  )LUH  66  /UJ OE  0LO
G¶
'D\6LJKW        OE  0LO
1LJKW6LJKW        OE  0LO
6SHFLDO5XOHV 6LJKWVPXVWEHSXUFKDVHGVHSDUDWHO\IURPWKHODXQFKHUPLVVLOHDVVHPEOLHV

)8'*(
:HDSRQ 6KRWV 5DWHRI)LUH 5DQJH $FF\ 'PJ &RVW 1RWHV
0'UDJRQ   6XSHUE *UHDW   3RRU3HQHWUDWLRQ
0$'UDJRQ,,   6XSHUE *UHDW   0HGLRFUH3HQHWUDWLRQ
0$'UDJRQ,,7DQGHP   6XSHUE 6XSHUE   )DLU3HQHWUDWLRQ
0$6XSHU'UDJRQ   6XSHUE 6XSHUE   )DLU3HQHWUDWLRQ
6SHFLDO5XOHV 3ULFHVEDVHGXSRQSXUFKDVHRIDPLVVLOHDQGGD\WUDFNHU6XEWUDFWWRREWDLQWKHPLVVLOHSULFH1LJKWWUDFNHULV

$FWLRQ
675 0D[
:HDSRQ 'PJ 7\SH $FF 5PRG 5R) $PP :W &RVW 1RWHV
0LQ 5QJ
G
0'UDJRQ 3/        

G
0$'UDJRQ,, 3/        

G
0$'UDJRQ,,7DQGHP 3/        

G
0$6XSHU'UDJRQ 3/        

6SHFLDO5XOHV 3ULFHVEDVHGXSRQSXUFKDVHRIDPLVVLOHDQGGD\WUDFNHU6XEWUDFWWRREWDLQWKHPLVVLOHSULFH1LJKWWUDFNHULV
 [ B2NI2[N
7KH0PDFKLQHJXQZDVGHYHORSHGLQWKHODWH
:HDSRQ 00HGLXP0DFKLQH*XQ
¶VZLWKWKHLQLWLDOGHVLJQEHLQJOLWWOHPRUHWKDQDFRS\
0DQXIDFWXUHU 6DFR'HIHQVH,QF <HDU 
RI WKH *HUPDQPDGH 0* UHO\LQJ VSHFLILFDOO\ RQ WKH
IHHG PHFKDQLVP DQG JDVGULYHQ DFWLRQ RI WKLV :RUOG :DU 1DWLRQ 8QLWHG6WDWHV
7ZR ZHDSRQ 7KH 8QLWHG 6WDWHV PLOLWDU\ DGRSWHG WKH 0 &DOLEHU PP1$72 0DJV URXQGEHOWV
LQDQGWKHPDFKLQHJXQVHUYHGDVWKHPDLQPHGLXP $FFXUDF\ *URXS FP#P 02$
RU JHQHUDO SXUSRVH PDFKLQH JXQ XQWLO WKH 0 ZDV .LOO 3HQ
DGRSWHG%\WKH$UP\LQWKH¶V:KLOHWKH$UP\QRZKDV 9HORFLW\ PV (QHUJ\ -
FRPSOHWHO\ILHOGHGWKH0UHSODFHPHQWVIRUWKH0WKH :HLJKW (PSW\ NJ 52) 66 
0DULQHVFRQWLQXHWRUHSODFHWKH0LQWKHILHOG+RZHYHU /RDGHG NJ 0% 
HYHQ GXULQJ 2SHUDWLRQ ,UDTL )UHHGRP WKH 860& KDG /HQJWK PP %XUVW 
0(PDFKLQHJXQVLQFRPEDW 5DQJH (IIHFWLYH P $XWR 
7KH 0( LV WKH PRVW UHFHQW YHUVLRQ RI WKH 0D[ P &\FOLF 
0 DQG WKH ILQDO DWWHPSW WR LPSURYH WKH ZHDSRQ DQG 1RWHV 6SDUHEDUUHOVZHLJKNJ
FRPSHQVDWH IRU LWV IODZV :KLOH WKH 0 ZDV PDGH
UHODWLYHO\IDPRXVE\PRYLHVDERXW9LHWQDPWKHUHDOLW\ZDV :HDSRQ 0(*30*/RQJ%DUUHO
TXLWH GLIIHUHQW 7KH ZHDSRQ KDG D ORW RI SUREOHPV WKDW 0DQXIDFWXUHU <HDU
PDGH LW GLIILFXOW WR EHVW HIIHFW $ JXQQHU HLWKHU XVHG WKH
1DWLRQ 8QLWHG6WDWHV
ZHDSRQ VDIHO\ DQG LQHIIHFWLYHO\ RU HIIHFWLYHO\ DW JUHDW
&DOLEHU PP1$72 0DJV URXQGEHOWV
SHUVRQDOULVN
7KHPDMRU SUREOHP RI WKH 0 LV RYHUKHDWLQJ ,W $FFXUDF\ *URXS FP#P 02$
KHDWV VR TXLFNO\ ZLWK VXVWDLQHG ILUH WKDW LW ZDV .LOO 3HQ
UHFRPPHQGHGWKDWWKHEDUUHOEHVZDSSHGDWWKHVDPHWLPH 9HORFLW\ PV (QHUJ\ -
DPPXQLWLRQ ZDV UHORDGHG LQ WKH ZHDSRQ HYHU\  :HLJKW (PSW\ NJ 52) 66 
URXQGV3XVKLQJWKHEDUUHOIXUWKHUWKDQWKLVZRXOGZDUS WKH /RDGHG NJ 0% 
EDUUHOTXLFNO\WR WKHSRLQW RIDWOHDVWUXLQLQJWKH DLPLI QRW /HQJWK PP %XUVW 
MDPPLQJWKHZHDSRQRURXWULJKWGHVWUR\LQJLWE\IXVLQJWKH 5DQJH (IIHFWLYH P $XWR 
EDUUHO WR WKH UHFHLYHU (YHQ WKRXJK WKH EDUUHO LV D TXLFN 0D[ P &\FOLF 
FKDQJH GHVLJQ WKH ELSRG LV FRQQHFWHG WR WKH EDUUHO 1RWHV 6SDUHEDUUHOVZHLJKNJ
UHTXLULQJ D VHFRQG SHUVRQ WR VXSSRUW WKH JXQ ZKLOH WKH
JXQQHU FKDQJHV WKH EDUUHO $GGLWLRQDOO\ WKHUH LV QR :HDSRQ 0(*30*6KRUW%DUUHO
LQVXODWHG JULSSLQJ VXUIDFH RQ WKH EDUUHO VR D VSHFLDO 0DQXIDFWXUHU <HDU
DVEHVWRVPLWWHQZDVQHHGHGWRUHPRYHWKHKHDWHGEDUUHO 1DWLRQ 8QLWHG6WDWHV
+RZHYHU WKH 0 GLG LPSURYH RQ SUHYLRXV &DOLEHU PP1$72 0DJV URXQGEHOWV
PDFKLQHJXQV LQDIHZZD\V:KLOHE\QRPHDQVOLJKWWKH
$FFXUDF\ *URXS FP#P 02$
ODUJH IRUHDUP DVVHPEO\ DQG EXWWVWRFN DOORZ WKH JXQ WR EH
.LOO 3HQ
ILUHGRQWKHPRYHIURPWKHKLSHYHQDLPHGDQGILUHGIURP
WKH VKRXOGHU OLNH D ULIOH 2YHU WKH \HDUV FKDQJHV ZHUH 9HORFLW\ PV (QHUJ\ -
PDGH WR LPSURYH SHUIRUPDQFH DQG UHOLDELOLW\ DQG WKH :HLJKW (PSW\ NJ 52) 66 
DPPXQLWLRQ ZHQW IURP ORRVH EHOWV WR EHLQJ SDFNDJHG LQ /RDGHG NJ 0% 
FDQYDV SDFNV WKDW DWWDFK WR WKH VLGH RI WKH PDFKLQH JXQ /HQJWK PP %XUVW 
PXFKOLNHWKHDPPXQLWLRQSDFNVRIWKH06$: 5DQJH (IIHFWLYH P $XWR 
7KH0(ZDVWKHILUVWPDMRUGHVLJQFKDQJHRQ 0D[ P &\FOLF 
WKHZHDSRQZKLFKDIIL[HGWKHELSRG WRWKHJDVWXEHZKLFK 1RWHV 6SDUHEDUUHOVZHLJKNJ
LQWXUQZDVDIIL[HGWRWKHUHFHLYHUHOLPLQDWLQJWKHQHHGIRU
DQDVVLVWDQWWRVXSSRUWWKHZHDSRQGXULQJEDUUHOFKDQJHV
7KH0(LVWKHFXOPLQDWLRQRIWKHVHPDQ\DOWHUDWLRQV7KHFRQYHUVLRQNLWPDNHVWKHZHDSRQOLJKWHUDQGVPDOOHU DQGWKHUHIRUH
PRUH PDQDJHDEOH 7KH 0( EHFDPH WKH PLOLWDU\¶V ILUVW FORVH TXDUWHUV DVVDXOW PDFKLQH JXQ GHYHORSHG E\ WKH 1DY\ ILUVW IRU XVH E\ WKH
6($/V7KHODUJHIRUHDUPLVUHSODFHGE\DVPDOOHUIRUHDUPDVVHPEO\ZLWKDQLQWHJUDWHGSLVWROJULSDQGOLJKWHUELSRG7KHQHZOLJKWHUEDUUHOV
DYDLODEOHLQWZROHQJWKVKDYHLQWHJUDWHGFDUU\KDQGOHVQHZIODVKKLGHUVDQGIXOO\DGMXVWDEOHIURQWVLJKWV7KHSLVWROJULSLVUHSODFHGZLWKD
PRUHFRPIRUWDEOHYHUVLRQFRPSOHWH ZLWK DIROGLQJ WULJJHUJXDUGWKDWDOORZVILULQJ WKHZHDSRQZLWK JORYHV RQ,QWHUQDOSDUWVDUH UHSODFHGWR
LPSURYHUHOLDELOLW\7KLVLQFOXGHVDQDPELGH[WURXVVDIHW\XQLYHUVDOVOLQJDWWDFKPHQWVDQGD QHZVLPSOLILHGJDVV\VWHPWKDWGRHVQ¶WUHTXLUHD
VDIHW\ZLUHWRSUHYHQWORRVHQLQJ$OOWKLVPDGHWKHZHDSRQERWKEHWWHUDQGZRUVH7KHOLJKWHUEDUUHOVRYHUKHDWHYHQZRUVHWKDQWKHRULJLQDOV
OHDGLQJWRJUHDWHUILULQJUHVWULFWLRQVDQGIDVWHUGHJUDGDWLRQRIZHDSRQUHOLDELOLW\,IWKHEDUUHOLVQRWFKDQJHGHYHU\URXQGVWKHQHZEDUUHOV
ZRXOGHDVLO\ EHGHVWUR\HGE\UDSLGVXVWDLQHGILUHDIWHUQRPRUHWKDQWRURXQGVILUHG1HHGOHVVWRVD\WKH6($/VVWXFNZLWKWKHLUZHOO
ZRUQDQGEHORYHG06WRQHU:HDSRQ6\VWHPDQGWKH0DULQHVQRZVWXFNZLWKWKH0(IRUZHOORYHUDGHFDGHKDYHVWUXJJOHGWRUHSODFH
LWZLWKWKH0*30*
7KH 0 FDQ XVH 0 DUPRUSLHUFLQJ 0 WUDFHU 0 PHFKDQLFDO WUDLQLQJ GXPP\ 0 EDOO)0- DQG 0 EODQN
PXQLWLRQV7KHSUHIHUUHGFRPEDWORDGLVDQDPPXQLWLRQPL[RI0FDUWULGJHVDQG 0FDUWULGJH7KLVVWDQGDUGIRXUDQGRQHPL[RIEDOO
DQGWUDFHUDPPXQLWLRQDOORZVWKHJXQQHUWRXVHWKH727RU7UDFHU2Q7DUJHWPHWKRGRIDGMXVWLQJILUHWRDFKLHYHDWDUJHWNLOO
[ B2NI2[N
 [ B2NI2[N
&\EHUWKULOOHU
(IIHFW :HLJKW :HLJKW
5DWHRI 5DQJH (PSW\ /RDGHG
:HDSRQ 7\SH $&& &RQ $Y &DOLEHU '0 $PPR )LUH 5HO PHWHUV NJ NJ &RVW
>66@
0 +9<  1 0 1   67    
>$@>&@
0(/RQJ +9<  1 0 1   >66@ 67    
0(6KRUW +9<  1 0 1   >$@>&@ 67    
6SHFLDO5XOHV

'6\VWHP
'DPDJH 5DQJH 5DWHRI 3XUFKDVH
:HDSRQ 'DPDJH &ULWLFDO 7\SH ,QFUHPHQW )LUH 0DJ 6L]H :HLJKW '& 5HVWULFWLRQ
0 G  EDOOLVWLF  6$$ % /UJ OE  0LO
0(/RQJ G  EDOOLVWLF  6$$ % /UJ OE  0LO
0(6KRUW G  EDOOLVWLF  6$$ % /UJ OE  0LO
6SHFLDO5XOHV

)8'*(
:HDSRQ 6KRWV 5DWHRI)LUH 5DQJH $FF\ 'PJ &RVW 1RWHV
0  6$$& 6XSHUE *RRG  
0(/RQJ  6$$& 6XSHUE *RRG  
0(6KRUW  6$$& 6XSHUE *RRG  
6SHFLDO5XOHV

$FWLRQ
675 0D[
:HDSRQ 'PJ 7\SH $FF 5PRG 5R) $PP :W &RVW 1RWHV
0LQ 5QJ
0 G 3/        
0(/RQJ G 3/        
0(6KRUW G 3/        
6SHFLDO5XOHV
 [
2RJA
7KH 0 /$: KDV EHHQ D PDLQVWD\ RI
:HDSRQ 0/LJKW$QWLWDQN:HDSRQ
PDQSRUWDEOHDQWLDUPRUWHFKQRORJ\IRUWKH86PLOLWDU\IRU
0DQXIDFWXUHU 7DOOH\'HIHQVH6\VWHPV <HDU 
GHFDGHV 7KH /$: LV D OLJKWZHLJKW PDQSRUWDEOH
GLVSRVDEOH RQHVKRW DQWLWDQN ZHDSRQ HIIHFWLYH DJDLQVW 1DWLRQ 8QLWHG6WDWHV
PRVWOLJKWDUPRUHGYHKLFOHVDQGVRIWVNLQQHGWDUJHWV &DOLEHU PPURFNHW 0DJV VLQJOHVKRW
7KH ZHDSRQ ZDV RULJLQDOO\ GHYHORSHG LQ WKH $FFXUDF\ *URXS 02$
HDUO\ ¶V E\ +HVVLDQ (DVWHUQ LQ UHVSRQVH WR WKH .LOO 3HQ PP
6RYLHW53*DQG53*ZHDSRQV\VWHPV$IWHU7DOOH\ 9HORFLW\ PV (QHUJ\
'HIHQVH6\VWHPVOLFHQVHGWKHZHDSRQIRUSURGXFWLRQLQ :HLJKW (PSW\ 52) 66 
WKH 8QLWHG 6WDWHV WKH ZHDSRQ UDSLGO\ EHFDPH D /RDGHG NJ 0% 
PDLQVWD\RIWKH86PLOLWDU\DQGWKDQNVWRWKDWH[WHQVLYH /HQJWK PPFORVHGPPRSHQ %XUVW 
GHSOR\PHQW D VWDQGDUG 1$72 ZHDSRQ V\VWHP DV ZHOO 5DQJH (IIHFWLYH P $XWR 
(YHQ WKH 6RYLHW %ORF QDWLRQV DSSUHFLDWHG WKH ZHDSRQ 0D[ P &\FOLF 
ZLWKWKH6RYLHWVDQG&]HFKVGXSOLFDWLQJLWLQWKHIRUPRI 1RWHV
WKH53*DQG53*V\VWHPV
7KH 0 /$: LV D PP GLDPHWHU XQJXLGHG :HDSRQ 0$/LJKW$QWLWDQN:HDSRQ
URFNHW EHDULQJ D VKDSHG FKDUJH +($7 ZDUKHDG 0DQXIDFWXUHU 7DOOH\'HIHQVH6\VWHPV <HDU 
HIIHFWLYH WR D UDQJH RI XS WR  PHWHUV 6LQFH LWV 1DWLRQ 8QLWHG6WDWHV
LQWURGXFWLRQWKH0KDVEHHQXSJUDGHGVHYHUDOWLPHV &DOLEHU PPURFNHW 0DJV VLQJOHVKRW
)LYHGLIIHUHQWPRGHOVRIWKH/$:DOOH[WHUQDOO\LGHQWLFDO $FFXUDF\ *URXS 02$
ZHUH GHYHORSHG RYHU WKH \HDUV WKDQNV WR WKH .LOO 3HQ PP
H[SHULHQFHV RI 9LHWQDP 8QIRUWXQDWHO\ DV WKH ZHDSRQ 9HORFLW\ PV (QHUJ\
ZDVXSJUDGHGSURGXFWJRDOVFKDQJHGVRWKDWZKLOHRQH :HLJKW (PSW\ 52) 66 
PRGHO RI WKH ZHDSRQ PLJKW EH RSWLPL]HG IRU DUPRU /RDGHG NJ 0% 
SHQHWUDWLRQ WKH QH[W PLJKW EH RSWLPL]HG IRU H[SORVLYH /HQJWK PPFORVHG PPRSHQ %XUVW 
HIIHFWRUEODVWDUHD7KLVODFNRIGLUHFWLRQDQGWKHODFNRI 5DQJH (IIHFWLYH P $XWR 
REYLRXVIHDWXUHVWRGLIIHUHQWLDWHPRGHOVRIWKH0PDGH 0D[ P &\FOLF 
LWDORJLVWLFDOQLJKWPDUHIRUHYHU\PLOLWDU\XVLQJLW 1RWHV
7RRSHUDWHWKHVROGLHUVLPSO\SRSVRIIWKHHQG
FDSV EUHDNLQJ WKH ZDWHUWLJKW VHDO RQ WKH ZHDSRQ +H :HDSRQ 0$/LJKW$QWLWDQN:HDSRQ
WKHQH[WHQGVWKHLQQHUWXEHUHDUZDUGWKHQUHPRYHVWKH 0DQXIDFWXUHU 7DOOH\'HIHQVH6\VWHPV <HDU 
ILULQJ SLQ DQG RSHQV WKH EDVLF VLJKW RQ WKH ZHDSRQ 1DWLRQ 8QLWHG6WDWHV
ZKLFK LV JUDGHG WR  PHWHU LQFUHPHQWV WR  PHWHUV
&DOLEHU PPURFNHW 0DJV VLQJOHVKRW
ZLWKPSKOHDGLQGH[HVWRHDFKVLGH3ODFLQJWKHLQQHU
$FFXUDF\ *URXS 02$
WXEH XSRQ KLV VKRXOGHU WKH VROGLHU WKHQ DLPV DQG ILUHV
.LOO 3HQ PP
WKH PLVVLOH %HIRUH ILULQJ WKH VROGLHU QHHGHG WR HQVXUH
WKDW WKH EDFNEODVW DUHD VRPH  PHWHUV GHHS DQG  9HORFLW\ PV (QHUJ\
PHWHUVZLGHZDVFOHDURIDQ\IULHQGO\IRUFHV7KHURFNHW :HLJKW (PSW\ 52) 66 
ZLWK D YHORFLW\ RI  PV FDQ DFFXUDWHO\ VWULNH /RDGHG NJ 0% 
VWDWLRQDU\ WDUJHWV WR D UDQJH RI  PHWHUV DQGPRYLQJ /HQJWK PPFORVHGPPRSHQ %XUVW 
WDUJHWV DW D UDQJH RI  PHWHUV RU HQJDJH DV DQ 5DQJH (IIHFWLYH P $XWR 
LQGLUHFW ILUH ZHDSRQ RQ WDUJHWV URXJKO\ RQH NLORPHWHU 0D[ P &\FOLF 
DZD\ 8SRQ GHWRQDWLRQ WKH ZDUKHDG SURGXFHV D MHW RI 1RWHV
SODVPDPRYLQJDWDYHORFLW\RIPHWHUVSHUVHFRQG
ZKLFK VWULNHV ZLWK D IRUFH RI PRUH WKDQ  PLOOLRQ :HDSRQ 0$/LJKW$QWLWDQN:HDSRQ
NLORJUDPV SHU VTXDUH FHQWLPHWHU HDVLO\ FDUYLQJ D KROH 0DQXIDFWXUHU 7DOOH\'HIHQVH 6\VWHPV <HDU 
WKURXJK5+$SODWH 1DWLRQ 8QLWHG6WDWHV
(DUO\ XQLWV RI WKH 0 /$: ZHUH HVVHQWLDOO\ &DOLEHU PPURFNHW 0DJV VLQJOHVKRW
GHIHFWLYH ZLWK XQGHUSRZHUHG URFNHW PRWRUV WKDW EXULHG $FFXUDF\ *URXS 02$
WKHURXQGLQWKHGLUW\DUGVVKRUWRIWKHLULQWHQGHGWDUJHWV .LOO 3HQ PP
$GGLWLRQDOO\ ZKLOH WKH PDQXIDFWXUHUV FODLPHG WKH 9HORFLW\ PV (QHUJ\
ZHDSRQ FRXOG GHIHDW WKH DUPRU RI DQ\ PRGHUQ WDQN :HLJKW (PSW\ 52) 66 
DYDLODEOH DW WKH WLPH WKLV ZDV LQ DFWXDOLW\ D IDOVHKRRG /RDGHG NJ 0% 
7KLV GHIHDW RI HQHP\ DUPRU UHTXLUHG D SHUIHFWO\ /HQJWK PPFORVHGPPRSHQ %XUVW 
SHUSHQGLFXODU VWULNH RQ WKH YHKLFOH VRPHWKLQJ YLUWXDOO\ 5DQJH (IIHFWLYH P $XWR 
LPSRVVLEOH WR DWWDLQ LQ WKH KHDW RI FRPEDW HVSHFLDOO\ 0D[ P &\FOLF 
DJDLQVWDPRYLQJWDUJHW7KHSHQHWUDWLRQFDSDELOLW\RIWKH 1RWHV
/$: YDULHG ZLGHO\ IURP PP WR PP RI DUPRU
0RVW PLOLWDULHV VHWWOHG RQ WKH 0$ DQG 0$ :HDSRQ 0$/LJKW$QWLWDQN:HDSRQ
YDULDQWVRIWKHZHDSRQ 0DQXIDFWXUHU 7DOOH\'HIHQVH6\VWHPV <HDU 
0RVW /$:V DUH VROG LQ FDVHV RI ILYH IRU 1DWLRQ 8QLWHG6WDWHV
7KH0$/$:VDOVRVROGLQFDVHVRIILYHDUH &DOLEHU PPURFNHW 0DJV VLQJOHVKRW
VLJQLILFDQWO\OHVVDWSHUFDVH $FFXUDF\ *URXS 02$
x 7KH RULJLQDO 0 FRXOG SHQHWUDWH PP RI .LOO 3HQ PP
DUPRU EXW GXH WR LWV XQUHOLDEOH URFNHW PRWRU 9HORFLW\ PV (QHUJ\
FRXOGUHOLDEO\KLWDPRYLQJWDUJHWDWDERXW :HLJKW (PSW\ 52) 66 
PHWHUV DQG D PRYLQJ WDUJHW DW  PHWHUV /RDGHG NJ 0% 
SURYLGHG WKH RSHUDWRU ZDV IDPLOLDU ZLWK WKH
/HQJWK PPFORVHGPPRSHQ %XUVW 
VLJKWLQJ SUREOHPV DQG FRPSHQVDWHG 7KH
5DQJH (IIHFWLYH P $XWR 
URFNHWV RIWHQ UHDFKHG OLWWOH PRUH WKDQ 
0D[ P &\FOLF 
PHWHUVPD[LPXPUDQJH
1RWHV
x 7KH 0$ DQG 0$ LPSURYHG WKH URFNHW
DQGFRXOGVWULNHPRYLQJWDUJHWVDWPHWHUV
DQG VWDWLRQDU\ WDUJHWV DW  PHWHUV ZLWK D
[
2RJA
PD[LPXP UDQJH RI  PHWHUV ,W VWLOO RQO\ SHQHWUDWHG  PP RI DUPRU 7KH URFNHW PRWRUV RQ WKH 0$ ZHUH FKHDSHU EXW
KHDYLHULQFUHDVLQJWKHZHDSRQ¶VZHLJKWE\NJ
x 7KH 0$ LPSURYHG WKH ZDUKHDG IRU D PRUH :HDSRQ 0$/LJKW$QWLWDQN:HDSRQ
SRZHUIXOHIIHFWSHQHWUDWLQJPPRIDUPRUPRUH
0DQXIDFWXUHU 7DOOH\'HIHQVH6\VWHPV <HDU 
WKDQ DQ\ RWKHU YHUVLRQ RI WKH /$: SURGXFHG ,W
1DWLRQ 8QLWHG6WDWHV
FRXOG KLW PRYLQJ WDUJHWV DW  PHWHUV VWDWLRQDU\
WDUJHWV DW  PHWHUV DQG UHDFKHG D PD[LPXP &DOLEHU PPURFNHW 0DJV VLQJOHVKRW
UDQJHRIPHWHUV $FFXUDF\ *URXS 02$
x 7KH0$ LPSURYHGRQWKH 0$E\XVLQJOHVV .LOO 3HQ PP
H[SHQVLYHH[SORVLYHVWRJHWQHDUO\WKHVDPHHIIHFW 9HORFLW\ PV (QHUJ\
SHQHWUDWLQJ VRPH PP RI DUPRU /LNH WKH :HLJKW (PSW\ 52) 66 
0$ LW FRXOG KLW PRYLQJ WDUJHWV DW  PHWHUV /RDGHG NJ 0% 
VWDWLRQDU\ WDUJHWV DW  PHWHUV DQG UHDFKHG D /HQJWK PPFORVHGPPRSHQ %XUVW 
PD[LPXPUDQJH RIPHWHUV 5DQJH (IIHFWLYH P $XWR 
x 7KH0$ZDVWKHODVWYHUVLRQRIWKH0/$:WR 0D[ P &\FOLF 
EH GHYHORSHG 8QOLNH WKH SUHYLRXV YDULDQWV WKH 1RWHV
0$ZDVQRWGHVLJQHGDVDQDQWLDUPRUZHDSRQ
7KLVYHUVLRQFRXOGRQO\SHQHWUDWHPPRIDUPRU
EXW SRVVHVVHG LPSURYHG EODVW DQG IUDJPHQWDU\ FDSDFLWLHV PDNLQJ LW DQ H[FHSWLRQDO ORQJ UDQJH DQWLSHUVRQQHO ZHDSRQ :KLOH LW
FRXOGKLWDPRYLQJWDUJHWDWPHWHUVDQGVWDWLRQDU\WDUJHWVDWPHWHUVLWZDVEHWWHUXVHGDVDQLQGLUHFWILUHZHDSRQDWUDQJHV
EHWZHHQDQGPHWHUV

:KLOH WKH 0 /$: LV QRZ EHJLQQLQJ WR IDGH IURP WKH EDWWOHILHOGV DV VXSHULRU VPDOO DUPV URFNHW ZHDSRQV HQWHU VHUYLFH WKH WKUHDW LW
UHSUHVHQWVUHPDLQVVLJQLILFDQW,Q &KLFDJRSROLFHEURNH XSDJDQJWKDWZDVDWWHPSWLQJWR EX\ $.V 0V + .03V DQG0
/$:VLQRUGHUWRXVHWKHZHDSRQVLQDSORWWRGHVWUR\DUHJLRQDOSROLFHFRPPDQGFHQWHUORFDWHGRQ&KLFDJR¶VZHVWVLGH7KHVHJDQJEDQJHUV
DFWXDOO\ZHQWVRIDUDVWRPDNHDGRZQSD\PHQWRIDQGNJRIFRFDLQH:KHQWKH\ZHUHDUUHVWHGWKHKDGDOUHDG\PDQDJHGWR
REWDLQVRPHVXUSOXVIUDJPHQWDWLRQKDQGJUHQDGHV
[
2RJA
[
2RJA
&\EHUWKULOOHU
(IIHFW :HLJKW :HLJKW
5DWHRI 5DQJH (PSW\ /RDGHG
:HDSRQ 7\SH $&& &RQ $Y &DOLEHU '0 $PPR )LUH 5HO PHWHUV NJ NJ &RVW
0/$: +9<  1 0    67    
3(1
0$/$: +9<  1 0    5(    
GP
0$/$: +9<  1 0    95    
3(1
0$/$: +9<  1 0    95    
GP
3(1
0$/$: +9<  1 0    95    
GP
3(1
0$/$: +9<  1 0 G    95    
P
6SHFLDO5XOHV

'6\VWHP
'DPDJH 5DQJH 5DWHRI 3XUFKDVH
:HDSRQ 'DPDJH &ULWLFDO 7\SH ,QFUHPHQW )LUH 0DJ 6L]H :HLJKW '& 5HVWULFWLRQ
0/$:  ILUH  66  0HG OE  0LO
3(1
0$/$:  ILUH  66  0HG OE  0LO
G¶
0$/$:  ILUH  66  0HG OE  0LO
3(1
0$/$:  ILUH  66  0HG OE  0LO
G¶
3(1
0$/$:  ILUH  66  0HG OE  0LO
G¶
3(1
0$/$: G  ILUH  66  0HG OE  0LO
¶
6SHFLDO5XOHV

)8'*(
:HDSRQ 6KRWV 5DWHRI)LUH 5DQJH $FF\ 'PJ &RVW 1RWHV
0/$:  66 3RRU 0HGLRFUH   0HGLRFUH3HQHWUDWLRQ
0$/$:  66 3RRU 0HGLRFUH   0HGLRFUH3HQHWUDWLRQ
0$/$:  66 3RRU 0HGLRFUH   0HGLRFUH3HQHWUDWLRQ
0$/$:  66 3RRU 0HGLRFUH   0HGLRFUH3HQHWUDWLRQ
0$/$:  66 3RRU 0HGLRFUH   0HGLRFUH3HQHWUDWLRQ
0$/$:  66 3RRU 0HGLRFUH   3RRU3HQHWUDWLRQ
6SHFLDO5XOHV

$FWLRQ
675 0D[
:HDSRQ 'PJ 7\SH $FF 5PRG 5R) $PP :W &RVW 1RWHV
0LQ 5QJ
0/$: 3/        
G
0$/$: 3/        

0$/$: 3/        
G
0$/$: 3/        

G
0$/$: 3/        

G
0$/$: 3/        

6SHFLDO5XOHV
 [2K+*2I%
7KH06HUYLFH3LVWROLVDZHDSRQZLWKDUDWKHU
:HDSRQ 0
VRUGLG KLVWRU\ :KHQ WKH 0$ VLGHDUPV KDG ILQDOO\
0DQXIDFWXUHU %HUHWWD <HDU 
ZRUQ RXW DIWHU RYHU  \HDUV RI FRQWLQXRXV VHUYLFH WKH
'HSDUWPHQWRI'HIHQVHZDVVWULFNHQE\WKH&RQJUHVVLRQDO 1DWLRQ ,WDO\8QLWHG6WDWHV
EXGJHWFXWWLQJ IHYHU 5DWKHU WKDQ SHUPLWWLQJ WKH VHSDUDWH &DOLEHU PP3DUDEHOOXP 0DJV 
DUPHGVHUYLFHVWRHDFKVHHNRXWWKHLURZQUHSODFHPHQWIRU $FFXUDF\ *URXS FP#P 02$
WKH0$WKH'R'ZDVRUGHUHGWRFRQVROLGDWHWKHOLVWV .LOO 3HQ
RIUHTXLUHPHQWVRIHDFKRIWKHVHUYLFHVDQGILQGRQHSLVWRO 9HORFLW\ PV (QHUJ\
WKDW VXLWHG DOO WKHLU QHHGV ,Q  DIWHU DQ H[KDXVWLYH :HLJKW (PSW\ NJ 52) 66 
FRPSHWLWLRQWKHFRQWUDFWIRUWKHQHZSLVWROZDVSURYLGHGWR /RDGHG NJ 0% 
%HUHWWD IRU D VRPHZKDW PRGLILHG %HUHWWD ) SLVWRO WR EH /HQJWK PP %XUVW 
GHVLJQDWHGWKH0VHUYLFHSLVWRO 5DQJH (IIHFWLYH P $XWR 
'XULQJWKHFRPSHWLWLRQWKH%HUHWWDSLVWROJUHDWO\ 0D[ &\FOLF 
H[FHHGHGPLOLWDU\UHTXLUHPHQWVH[KLELWLQJRQHPDOIXQFWLRQ 86 $UP\SD\VSHUXQLWWKH860DULQHVSD\SHU
1RWHV
SHU  URXQGV ILUHG DQG D VHUYLFH OLIH RI PRUH WKDQ XQLW
GRXEOH WKH  URXQG UHTXLUHPHQW RI WKH $UP\ 7KH
DZDUGHGFRQWUDFWZDVIRUSLVWROVZKLFKKDYHEHHQGHOLYHUHGWRWKHPLOLWDU\DWDUDWHRIZHDSRQVSHUPRQWKGHOLYHUHGIURPD
IDFWRU\LQ0DU\ODQGDVZHOODVVKLSSHGIURP,WDO\7KLVHTXDWHVWRDVHYHQ\HDUFRQWUDFWWRGHOLYHUDWRWDORIZHDSRQV
7KHHDUO\\HDUVRIWKHSLVWROZHUHQRWVPRRWKRQHV)LUVWFDPHSROLWLFDOSUHVVXUHEURXJKWDERXWIURP6PLWK :HVVRQLQRUGHUWR
REWDLQ D VHFRQG FRPSHWLWLRQ IRU WKH FRQWUDFW 7KH HQG UHVXOW ZDV %HUHWWD JHWWLQJ D FRQWUDFW IRU DQ DGGLWLRQDO  DUPV 7KH YDULRXV
FRPSHWLQJSLVWROVHYHQDIWHULPSURYHPHQWVZHUHVWLOOQRWDEOHWRPHHWWKHVFRUHV%HUHWWDHVWDEOLVKHGGXULQJWKHWULDOV
7KHQH[WPDMRULVVXHDSSHDUHGWKHIROORZLQJ\HDUZKHQWKH86$UP\SXWWKH0WKURXJKPRUHHQGXUDQFHWULDOV:KLOHWKH0ZDV
EXV\ SURYLQJ LW KDG D OLIH VSDQ LQ H[FHVV RI  URXQGV ILUHG IRXU WLPHV WKH $UP\¶V  UHTXLUHPHQWV WKHUH ZDV D EDWFK RI 0
DPPXQLWLRQWKDWHQWHUHGWKHWHVWLQJSURFHVV0XQLWLRQVVXSSOLHU2OLQFODLPHGWKH\GLGQRWPDQXIDFWXUHWKHDPPXQLWLRQLQWKLVEDWFK7KHHQG
UHVXOW ZDV WKDW VRPH 0 SLVWROV ZHUH SXW WKURXJK HQGXUDQFH WHVWV ZLWK ZKDW ZDV SUREDEO\ LPSURSHUO\ PDUNHG KLJKSUHVVXUHKLJKLPSXOVH
JXQVPLWKTXDOLW\FRQWURODPPXQLWLRQ:KHQILUHGWKHVHPXQLWLRQVJHQHUDWHLQWHUQDOSUHVVXUHVLQVLGHDJXQWKDWFDQEHWHQVRIWLPHVKLJKHU
WKDQWKDWJHQHUDWHGE\QRUPDODPPXQLWLRQ1RUPDOO\DJXQVPLWKRUPDQXIDFWXUHUZLOOILUHRQO\DIHZURXQGVRIWKLVDPPXQLWLRQWKURXJKDJXQ
DVLWZLOOLPPHGLDWHO\H[SRVHDQ\IODZHGSDUWVE\SURGXFLQJEUHDNDJHV+RZHYHUZKHQILULQJKXQGUHGVRIURXQGVRIWKLVDPPXQLWLRQWKURXJK
WKHVDPHJXQLWZLOOFUHDWHWKRVHIODZVWKURXJKVWUHVVIUDFWXUHVDQGHYHQWXDOO\OHDGWREUHDNDJHV7ZR0SLVWROVVXIIHUHGVOLGHIDLOXUHVDIWHU
ILULQJZKDWPD\KDYHEHHQDVPDQ\DVURXQGVRIWKLVKLJKSUHVVXUHDPPXQLWLRQ7KH0VZHUHSXWRQUHGXFHGVHUYLFHZLWKILHOGXVH
OLPLWHGWRDPD[LPXPRIURXQGVZKLOHWKHIDLOXUHVZHUHLQYHVWLJDWHGPRUHSLVWROVZHUHWKHQGHVWUR\HGWKURXJKIXUWKHUHQGXUDQFH
WHVWLQJDQGPHWDOOXUJLFDOVWXGLHVEHIRUHWKHLQYHVWLJDWLRQHQGHG,QWKHHQGDIWHUGHWHUPLQLQJWKHUHZHUHRQO\WZRIDLOXUHVLQRYHU
0DQG)VOLGHVPDQXIDFWXUHGUHVXOWLQJLQWKHSLVWROVUHWXUQLQJWRIXOODFWLYHGXW\
2IFRXUVHWKHFRQWURYHUV\RYHUWKH0GRHVQ¶WHQGWKHUH7KHVHGD\VWKHUHLVDFRPSDQ\FODLPLQJLWSURYLGHGWKH86$UP\&$'
VRIWZDUHXVHGWRGHYHORSWKH00HDQZKLOHWKHIDFWLVWKDWFUHGLWIRUGHYHORSLQJWKH0EHORQJVSULPDULO\DQGYDVWO\ZLWK%HUHWWDVLQFHWKH
0LVYLUWXDOO\LGHQWLFDOWRWKH)
7KH 0 KDV VHUYHG WKH 86 PLOLWDU\ DGHTXDWHO\ EXW DV WLPH KDV SDVVHG PRUH SUREOHPV ZLWK WKH ILUHDUP KDYH DULVHQ 'XULQJ
RSHUDWLRQV LQ$IJKDQLVWDQDIXOORIWURRSVXVLQJWKHSLVWROKDYHVWDUWHGUHSRUWLQJUXVWDQGFRUURVLRQSUREOHPVZLWKWKHSLVWROVHVSHFLDOO\
ZLWKWKHEDUUHO$ORQJZLWKWKLVSUREOHPPDQ\$O4DHGDDQG7DOLEDQILJKWHUH[KLELWHGV\PSWRPVRIEHLQJGUXJJHGZLWKNKDWVRPHWKLQJZLWKDQ
HIIHFWVLPLODUWR3&3VRVROGLHUVDUPHGZLWK0VIUHTXHQWO\KDGWRILUHH[FHVVLYHDPRXQWVRIDPPXQLWLRQLQWRWKHLUHQHPLHVWRVWRSWKHP$V
RQH5DQJHUKDGSXWLWLQDQDIWHUDFWLRQUHSRUW³:LWKWKH%HUHWWD,¶GKDYHWRILUHDOOURXQGV DQGWKHQWKURZWKHSLVWRODWWKLVZLOGH\HGGXGH´
2WKHU FRPSODLQWV DERXW WKH ZHDSRQ UHJDUGHGPDOIXQFWLRQV RFFXUULQJ YLUWXDOO\ ZKHQHYHU WKH ZHDSRQ JHWV ZHW DV ZHOO DV FRPSODLQWV DERXW
PDQ\ RIWKHROGHVWSLVWROVIDOOLQJ DSDUW ZKHQGURSSHG RUVWUXFNDJDLQVW DKDUGVXUIDFH 'XULQJ 2SHUDWLRQ,UDTL)UHHGRPPDJD]LQHIDLOXUHV
ZHUH VR ZLGHVSUHDG WKDW D JUHDW PDQ\ RIILFHUV WUDGHG XS WR D ULIOH :KLOH VRPH RI WKH IDLOXUHV ZHUH GXH WR WKH JULW GXVW DQG VDQG LQ WKH
HQYLURQPHQWPRVWZHUHGXHWRZHDNVSULQJVIDLOLQJ $WWKLVSRLQWLQWKHYDULRXVVSHFLDORSHUDWLRQVXQLWVRIWKH86PLOLWDU\WKHRQO\WURRSV
XVLQJWKH%HUHWWDDUHWKHRQHVZKRFDQQRWDIIRUGWREX\WKHLURZQKLJKHUFDOLEHUVLGHDUP
7KH0 LVHVVHQWLDOO\D%HUHWWD)ZLWKVOLJKWPRGLILFDWLRQVWREHWWHUVXSSRUWWKHULJRUVRIPLOLWDU\XVH7KH0KDV DUHGXQGDQW
DXWRPDWLFVDIHW\IHDWXUHVWRSUHYHQWDFFLGHQWDOGLVFKDUJH7KH0FDQEHILUHGLQHLWKHUVLQJOHRUGRXEOHDFWLRQPRGH7KHSLVWROFDQEHILUHG
ZLWKRXWDPDJD]LQHORDGHGLQWRLW
[2K+*2I%
&\EHUWKULOOHU
(IIHFW :HLJKW :HLJKW
5DWHRI 5DQJH (PSW\ /RDGHG
:HDSRQ 7\SH $&& &RQ $Y &DOLEHU '0 $PPR )LUH 5HO PHWHUV NJ NJ &RVW
06HUYLFH3LVWRO $5  - 0 PP3   >66@ 5(    
6SHFLDO5XOHV

'6\VWHP
'DPDJH 5DQJH 5DWHRI 3XUFKDVH
:HDSRQ 'DPDJH &ULWLFDO 7\SH ,QFUHPHQW )LUH 0DJ 6L]H :HLJKW '& 5HVWULFWLRQ
06HUYLFH3LVWRO G  EDOOLVWLF  6$  0HG OE  0LO
6SHFLDO5XOHV

)8'*(
:HDSRQ 6KRWV 5DWHRI)LUH 5DQJH $FF\ 'PJ &RVW 1RWHV
06HUYLFH3LVWRO  6$ 0HGLRFUH *UHDW  
6SHFLDO5XOHV

$FWLRQ
675 0D[
:HDSRQ 'PJ 7\SH $FF 5PRG 5R) $PP :W &RVW 1RWHV
0LQ 5QJ
06HUYLFH3LVWRO G 3/        
6SHFLDO5XOHV
 [%-
7KH0LODQ0LVVLOHG
,QIDQWULH/HJHU$1WLFKDULV
:HDSRQ 0LODQ
DQ DQWLWDQN JXLGHG PLVVLOH $7*0 GHYHORSHG DV SDUW RI
0DQXIDFWXUHU <HDU 
WKH MRLQW YHQWXUH (XURPLVVLOH SURMHFW LQYROYLQJ )UDQFH
*HUPDQ\ DQG WKH 8. 7KH (XURPLVVLOH SURMHFW DOVR 1DWLRQ )UDQFH*HUPDQ\8.
SURGXFHG WKH +RW $7*0 DQG WKH 5RODQG $QWLDLUFUDIW &DOLEHU PP0LVVLOH 0DJV 
PLVVLOH7KH0LODQLVDVHFRQGJHQHUDWLRQDQWLWDQNZHDSRQ $FFXUDF\ *URXS 02$
FRQVLVWLQJ RI WZR PDLQ FRPSRQHQWV WKH ODXQFKHU DQG WKH .LOO ! 3HQ PP
PLVVLOH7KHWZRDUHFOLSSHGWRJHWKHUWRSUHSDUHWKHV\VWHP 9HORFLW\ PV (QHUJ\
IRUXVH8SRQILULQJWKHRSHUDWRUQHHGRQO\NHHSWKHDLPLQJ :HLJKW (PSW\ NJ 52) 66 
PDUNRQWDUJHW DQGWKH6HPL$XWRPDWLF&RPPDQGWR/LQH /RDGHG NJ 0% 
RI 6LJKW 6$&/26 JXLGDQFH V\VWHP ZLOO GR WKH UHVW 7KH /HQJWK PP %XUVW 
V\VWHP ZDV RULJLQDOO\ GHYHORSHG IRU WKH )UHQFJ DQG :HVW 5DQJH 0LQ P $XWR 
*HUPDQ DPULHV EXW KDV VLQFH PRYHG RQ WR HQWHU VHUYLFH 0D[ P &\FOLF 
ZLWK WKH PLOLWDULHV RI  QDWLRQV DURXQG WKH ZRUOG NJVKDSHGH[SORVLYHZDUKHDG(DUO\SURGXFWLRQ
DFFRXQWLQJ IRU  RI WKH ZRUOG
V PHGLXPUDQJH DQWLWDQN 1RWHV PLVVLOHVSHQHWUDWHGRQO\PPRIDUPRUZKLOHODWHU
ZHDSRQ V\VWHP PDUNHW 7KH )UHQFK DQG *HUPDQ DUPLHV PLVVLOHVZHUHFDSDEOHRISHQHWUDWLQJPPRIDUPRU
KDYH SURFXUHG DFRPELQHG WRWDO RI PLODQ PLVVLOHV
DQG  ODXQFKHUV 7KH ZHDSRQ LV PDQXIDFWXUHG DW D :HDSRQ 0LODQ
SULPDU\ IDFLOLW\ LQ )RQWHQD\DX[5RVHV )UDQFH DV ZHOO DV 0DQXIDFWXUHU <HDU 
XQGHUOLFHQVHLQ6SDLQ*UHDW%ULWDLQDQG,QGLD,QDOOPRUH
1DWLRQ )UDQFH*HUPDQ\8.
WKDQ  ODXQFKHUV DQG  0LODQ PLVVLOHV RI
&DOLEHU PP0LVVLOH 0DJV 
YDULRXVW\SHVDUHLQWKHZRUOG
VDUVHQDOV
7KH 0LODQ ZDV WKH ILUVW LQIDQWU\EDVHG DQWLWDQN $FFXUDF\ *URXS 02$
ZHDSRQ WRUHDOO\FKDOOHQJHWKH VXSUHPDF\ RIWDQNVRQWKH .LOO  3HQ PP
EDWWOHILHOG,Q&KDGLQODXQFKHUVILWWHGWRWKHEHGV 9HORFLW\ PV (QHUJ\
RI  7R\RWD SLFNXSV DFFRXQWHG IRU WKH GHVWUXFWLRQ RI  :HLJKW (PSW\ NJ 52) 66 
/LE\DQ7DQG 7WDQNV7KH0LODQKDVVHUYHGZLWKWKH /RDGHG NJ 0% 
%ULWLVK$UP\IRUDERXWWZRGHFDGHVKDYLQJSXUFKDVHGRYHU /HQJWK PP %XUVW 
 ODXQFKHUV DQG  PLVVLOHV 7KH 0LODQ LV 5DQJH 0LQ P $XWR 
GHSOR\HG DW WKH EDWWDOLRQ OHYHO ZLWK DQ DUPRUHG LQIDQWU\ 0D[ P &\FOLF 
EDWWDOLRQEHLQJLVVXHGODXQFKHUVDQGPLVVLOHV7KH 1RWHV NJVKDSHGH[SORVLYHZDUKHDG
0LODQ ZDV FDUULHG LQWR ,UDT ZLWK WKH 5R\DO 0DULQH
V 
&RPPDQGR%ULJDGHLQWKHEDWWOHIRUFRQWURORYHUWKHFLW\RI :HDSRQ 0LODQ
%DVUD%\WKH%ULWLVKPLOLWDU\ZLOOEHJLQUHSODFLQJWKH 0DQXIDFWXUHU <HDU 
0LODQZLWK WKH8./LJKW)RUFHV $QWL7DQN*XLGHG:HDSRQ 1DWLRQ )UDQFH*HUPDQ\8.
6\VWHP $7*:6 ZKLFK UHTXLUHV DQ DQWLWDQN ZHDSRQ &DOLEHU PP0LVVLOH 0DJV 
V\VWHPFRQVLVWLQJ RI D ODXQFKHU DQG WZR PLVVLOHV WKDW FDQ
$FFXUDF\ *URXS 02$
EH FDUULHG  NP E\ D WZRPDQ FUHZ &XUUHQWO\ WKH RQO\
.LOO ! 3HQ PP
FDQGLGDWHVIRUWKLVV\VWHPDUHWKH86-DYHOLQRUWKH,VUDHOL
*LOO 9HORFLW\ PV (QHUJ\
7KH 0LODQ LWVHOI KDV EHHQ WKURXJK D QXPEHU RI :HLJKW (PSW\ NJ 52) 66 
JHQHUDWLRQV7KHRULJLQDO0LODQILUVWSURGXFHGLQDQG /RDGHG NJ 0% 
QRZ HVVHQWLDOO\ RXW RI VHUYLFH DVLGH IURP LWV ODXQFKHU /HQJWK PP %XUVW 
XWLOL]HG D KHIW\ V\VWHP IRU D WZR PDQ WHDP 7KH ODXQFKHU 5DQJH 0LQ P $XWR 
ZDV D ZHLJKW\  NJ SOXV  NJ IRU WKH WULSRG  NJ 0D[ P &\FOLF 
IRU WKH EDWWHU\ SDFN DQG  NJ IRU WKH 0,5$ WKHUPDO 1RWHV
LPDJLQJXQLWXVHGIRUQLJKWILJKWLQJ7KLVPHDQV WKHODXQFK
V\VWHP DORQH ZHLJKHG LQ DW  NJ 7KH RWKHU PDQ LQ WKH WHDP FDUULHG D SRG RI  PLVVLOHV HDFK PLVVLOH LQ D VHOIFRQWDLQHG ZDWHUSURRI
GLVSRVDEOH WXEH ZLWK WKDW SDFN ZHLJKLQJ  NJ (DFK PLVVLOHWXEH FRPELQDWLRQ ZHLJKV  NJ 1RW DQ HDV\ KDXO IRU DQ\ XQPHFKDQL]HG
LQIDQWU\IRUFHV7KHEDWWHU\SDFNSURYLGHGKRXUVRIIXOOSRZHURSHUDWLRQDQGWKHV\VWHPUHTXLUHGPLQXWHVWRZDUPXSIURPDFROGVWDUWDQG
VHFRQGVWRUHDG\ EHWZHHQILULQJV 7KHPLVVLOHKDGWKHVDPH NPUDQJHDVWKHODWHU 0LODQVOLPLWHGRQO\E\ WKHOHQJWKRIZLUHWKH\ FDQ
VSRRO RXW, VXSSRVH DQGWKH HDUO\ SURGXFWLRQ 0LODQ ZDUKHDG FRXOG SHQHWUDWH PP RIUROOHG KRPRJHQRXV DUPRU5+$ /DWHU 0LODQ
PLVVLOHVZHUHFDSDEOHRISHQHWUDWLQJPPRIDUPRU
7KH 0LODQ
LQWURGXFHG D QHZHU PRUH
SRZHUIXO ZDUKHDG DQG D
UHYLVHG ODXQFKHU PDGH
UHVLVWDQW WR FRXQWHUPHDVXUHV
E\XVLQJHOHFWURQLFIODVKODPS
WUDFNLQJ UDWKHU WKDQ DQ ,5
VHQVRU 7KH 0LODQ
V
ZDUKHDG LV FDSDEOH RI
SHQHWUDWLQJ RYHU PP RI
5+$
7KH 0LODQ ZDV IROORZHG XS
ZLWK WKH 0LODQ7 PLVVLOH
ZKLFK DOVR LQFRUSRUDWHV D
VPDOO WDQGHP FKDUJH
ZDUKHDG XVHG WR GHIHDW
UHDFWLYH DUPRU 7KH 0LODQ7
ZDV D SURRIRIFRQFHSW
V\VWHP OHDGLQJ XS WR WKH
0LODQ DQG WKHUHIRUH ZDV
QHYHU ILHOGHG 7KH 0LODQ
[%-
DOVRLQWURGXFHGDPRUHFRPSDFWDQGOLJKWHUODXQFKV\VWHPDVZHOOZHLJKLQJLQDWNJFRPSDUHGWRWKHNJRIWKHODXQFKHUSURGXFHG
RQO\ \HDUV HDUOLHU7KH0LODQUHVXOWHGLQ TXLWHDELWRIFKDQJHVWRWKH GHSOR\PHQWRIWKHV\VWHP5DWKHUWKDQ DPDQWHDP GHGLFDWHG
H[FOXVLYHO\ WR WKH ZHDSRQ WKH 0LODQ ZDV GHSOR\HG ZLWK RQH PDQ FDUU\LQJ WKH ODXQFKHU DQG D VHFRQGPDQ FDUU\LQJ RQH RU WZRPLVVLOHV
2FFDVLRQDOO\ D WKLUG PDQ ZDV SUHVHQW SUHDSULQJ D PLVVLOH IRU ORDGLQJ DQG ODXQFKLQJ ZKLOH RQH PDQ ILUHG D PLVVLOH DQG WKH WKLUG NHSW WKH
PXQLWLRQVRUJDQL]HG7KHUHLVDOVRRIWHQRQHRUPRUHDPPREHDUHUVZKRIROORZWKHWHDPHDFKFDUU\LQJZLWKDQH[WUDPLVVLOH
7KHODWHVWYHUVLRQLQSURGXFWLRQVLQFHLVWKH0LODQ7KH0LODQPLVVLOHLQFRUSRUDWHVDQRWKHUWDQGHPZDUKHDGFDSDEOHRI
GHIHDWLQJ WKHUHDFWLYHDSSOLTXHDUPRURQ D WDQNWKHQ EXUQLQJ DKROH WKURXJKPRUHWKDQPP RI5+$7KH0LODQDOVRSURYLGHVD QHZ
ODXQFKHUZKLFKSRVVHVVHVJUHDWHUIOH[LELOLW\RQLWVWULSRGDQGDPXFKZLGHUILHOGRIYLHZIRUWKHDLPLQJPHFKDQLVPZKLOHLQFOXGLQJQHZDQWL
MDPPLQJHTXLSPHQW,I\RX
UHFXULRXVDVWRKRZDPLVVLOHFRQWUROOHGE\VLJQDOVVHQWWKURXJKDSDLURIZLUHVLVMDPPHGWKHZLUHVLJQDOVDUHQ
W
ZKDWJHWVMDPPHG,QVWHDGWKHVHQVRURQWKHODXQFKHUXVHGWRDLPWKHPLVVLOHLVEOLQGHGZKLFKLQWXUQHIIHFWLYHO\MDPVWKHPLVVLOHVLQFHHLWKHU
WKH RSHUDWRUFDQ QR ORQJHU VHH ZKHUH WKHV\VWHP LV DLPHG RU WKHV\VWHP FDQQRW GHWHUPLQH ZKHUHWKH PLVVLOH LV JRLQJ LQ UHIHUHQFHWR WKH
WDUJHW
$OO0LODQV\VWHPVDUHVXVFHSWLEOHWRDQXPEHURIFRXQWHUPHDVXUHV7KHVHLQFOXGHVPRNH,5MDPPLQJIRUFHGODXQFKHUPRYHPHQW
DQGFRXQWHUILUHDLPHGWRZDUGWKHODXQFKHU,QQLJKWILJKWLQJWKH0,5$VLJKWFDQGHWHFWSRWHQWLDOWDUJHWVDWDUDQJHRIPHWHUVEXWFDQ
RQO\LGHQWLI\WKHPZLWKDQ\DFFXUDF\DWPHWHUVRUOHVV$ORQJZLWKWKHWULSRGEDVHGPDQSRUWDEOHODXQFKHUWKH0LODQFDQDOVREHILWWHGWR
SLQWOHPRXQWVRQDYDVWQXPEHURIYHKLFOHVDQGDFRPSDFWWXUUHWLVDYDLODEOHIRU$3&VDQG,)9VKROGLQJDSDLURIODXQFKHUV
 [%-
&\EHUWKULOOHU
(IIHFW :HLJKW :HLJKW
5DWHRI 5DQJH (PSW\ /RDGHG
:HDSRQ 7\SH $&& &RQ $Y &DOLEHU '0 $PPR )LUH 5HO PHWHUV NJ NJ &RVW
0LODQ/DXQFKHU 0,6  1 0 PP    95    
0LODQ/DXQFKHU 0,6  PP    95    
0LODQ/DXQFKHU 0,6  PP    95    
3(1
0LODQHDUO\0LVVLOH 0,6  1 0   95   
GP
3(1
0LODQODWH0LVVLOH 0,6  1 0   95   
GP
3(1
0LODQ0LVVLOH 0,6  1 0   95   
GP
3(1
0LODQ0LVVLOH 0,6  1 0   95   
GP
6SHFLDO5XOHV

'6\VWHP
'DPDJH 5DQJH 5DWHRI 3XUFKDVH
:HDSRQ 'DPDJH &ULWLFDO 7\SH ,QFUHPHQW )LUH 0DJ 6L]H :HLJKW '& 5HVWULFWLRQ
0LODQ/DXQFKHU     66  /UJ OEV  0LO
0LODQ/DXQFKHU     66  /UJ OEV  0LO
0LODQ/DXQFKHU     66  /UJ OEV  0LO
3(1
0LODQHDUO\0LVVLOH  ILUH  /UJ OE  0LO
G¶
3(1
0LODQODWH0LVVLOH G  ILUH  /UJ OE  0LO
¶
3(1
0LODQ0LVVLOH G  ILUH  /UJ OE  0LO
¶
3(1
0LODQ0LVVLOH G  ILUH  /UJ OE  0LO
¶
6SHFLDO5XOHV 3(1G¶

)8'*(
:HDSRQ 6KRWV 5DWHRI)LUH 5DQJH $FF\ 'PJ &RVW 1RWHV
0LODQ/DXQFKHU    *UHDW  
0LODQ/DXQFKHU    *UHDW  
0LODQ/DXQFKHU    6XSHUE  
0LODQHDUO\0LVVLOH   6XSHUE    0HGLRFUH3HQHWUDWLRQ
0LODQODWH0LVVLOH   6XSHUE    *RRG3HQHWUDWLRQ
0LODQ0LVVLOH   6XSHUE    *UHDW3HQHWUDWLRQ
0LODQ0LVVLOH   6XSHUE    6XSHUE3HQHWUDWLRQ
6SHFLDO5XOHV

$FWLRQ
675 0D[
:HDSRQ 'PJ 7\SH $FF 5PRG 5R) $PP :W &RVW 1RWHV
0LQ 5QJ
0LODQ/DXQFKHU          
0LODQ/DXQFKHU          
0LODQ/DXQFKHU          
G
0LODQHDUO\0LVVLOH 3/        

G
0LODQODWH0LVVLOH 3/        

G
0LODQ0LVVLOH 3/        

G
0LODQ0LVVLOH 3/        

6SHFLDO5XOHV
 IQ[2N-%2I2[*"-2N-
,QWKH\HDUVIROORZLQJ:RUOG:DU,,WKH6RYLHW
UHJLPHVRXJKWWRPRGHUQL]HWKHLUDUPLHVZLWKQHZVPDOO :HDSRQ 3.
DUPV DQG PLOLWDU\ YHKLFOHV 2QH RI WKRVH JRDOV ZDV WR 0DQXIDFWXUHU 5XVVLD6WDWH$UPV <HDU 
GHYHORS D UHOLDEOH JHQHUDO SXUSRVH PDFKLQH JXQ 7KLV 1DWLRQ 5XVVLD
ZDVDJRDOWKDWGDWHGEDFNWRWKHHDUO\
VZKHQWKH &DOLEHU [PP 0DJV URXQGEHOWV
6RYLHW JRYHUQPHQW ZDV ORRNLQJ WR UHSODFH WKH DUP\
V $FFXUDF\ *URXS 02$
DJLQJ FROOHFWLRQ RI FDUULDJHPRXQWHG 0D[LP PDFKLQH .LOO
JXQV 9HORFLW\ PV (QHUJ\
VDZWKHGHSOR\PHQWRIWKH'6IRUWKH :HLJKW (PSW\ NJ 52) 66 
)LQQLVK5XVVR :DU RI  7KLV PDFKLQH JXQ ZDV /RDGHG 0% 
TXLFNO\ ZLWKGUDZQ IURP VHUYLFH GXH WR LWV /HQJWK PP %XUVW 
RYHUFRPSOLFDWHG GHVLJQ SURSHQVLW\ WR PDOIXQFWLRQ LQ 5DQJH (IIHFW P $XWR 
FROG RU GXVW\ FRQGLWLRQV DQG D SRRUO\ GHVLJQHG IHHG 0D[ P &\FOLF 
PHFKDQLVP WKDW GDPDJHG HDFK DQG HYHU\ FDUWULGJH DV 1RWHV 3.6WULSRGDGGVNJWRWKHZHLJKW
WKH\ ZHUH VWULSSHG IURP EHOWV 7KH QH[W :RUOG :DU ,,
H[SHULPHQW ZDV WKH 6* ZKLFK ZDV OLJKWHU WKDQ WKH
ROG PD[LPV DQG IDU PRUH UHOLDEOH WKDW WKH '6 EXW LW :HDSRQ 3.0
VWLOO UHTXLUHG HLWKHU D ZKHHOHG FDUULDJH RU WULSRG WR XVH 0DQXIDFWXUHU 5XVVLD6WDWH$UPV <HDU 
SURSHUO\ 1DWLRQ 5XVVLD
6KRUWO\ DIWHU WKH HQG RI WKH ZDU WKH 6RYLHWV &DOLEHU [PP 0DJV URXQGEHOWV
DGRSWHG WKH 53 D OLJKW EHOWIHG YHUVLRQ RI WKH '30 $FFXUDF\ *URXS 02$
OLJKWPDFKLQHJXQZKLFKDFWXDOO\KDGLWVRULJLQVZLWKWKH .LOO
'3PDFKLQHJXQIURP7KHJXQZDVOLJKWIOH[LEOH 9HORFLW\ PV (QHUJ\
DQG DJLOH FRPSDUHG WR LWV SUHGHFHVVRUV EXW ZDV SUHWW\ :HLJKW (PSW\ NJ 52) 66 
PXFK XVHOHVV DV D JHQHUDO SXUSRVH PDFKLQH JXQ /RDGHG NJ 0% 
HYHQWXDOO\ HQGLQJ LWV FDUHHU DV WKH 6RYLHW $UP\
V OLJKW /HQJWK PP %XUVW 
PDFKLQHJXQ,WILUHGD[PPURXQGDQGVHUYHGDV 5DQJH (IIHFW P $XWR 
WKH IURQWOLQH FRPSDQ\ PDFKLQH JXQ XQWLO WKH 
V 0D[ P &\FOLF 
ZKHQLWZDVUHSODFHGZLWKWKH3. 1RWHV 3.06WULSRGDGGVNJRIZHLJKW
7KH 3. ZDV D PDFKLQH JXQ WHQ \HDUV LQ WKH
PDNLQJ 7KH 53 ZDV EDUHO\ HQWHULQJ VHUYLFH ZKHQ
FRPSHWLWLRQVZHUHKHOGIRU LWVUHSODFHPHQW7KHZLQQHUZDVDGHVLJQE\0LNKDLO.DODVKQLNRYVLPSOHULQGHVLJQDQGFKHDSHUWRPDQXIDFWXUH
7KLVPDFKLQHJXQWKH3.0RU3XOHP\RW.DODVKQLNRYDDGRSWHGIRUVHUYLFHZLWKWKH6RYLHWPLOLWDU\LQDQGHQWHUHGVHUYLFHLQDORQJ
ZLWKWKH3.6DQG3.7VDZWKHLQWURGXFWLRQRIWKH3.%DQGLQWKH3.0HQWHUHGVHUYLFHDIWHUWZR\HDUVRIILHOGWHVWVVLGHE\VLGH
ZLWKWKH3.067KHVHULIOHVDUHRUZHUHPDQXIDFWXUHGE\%XOJDULD&KLQD(DVW*HUPDQ\+XQJDU\3RODQG5RPDQLD5XVVLDDQGWKHIRUPHU
<XJRVODYLD
7KH 3.6 DQG 3.06 DUH VLPSO\ D 3. RU 3.0 PRXQWHG RQ D OLJKWZHLJKW NJ WULSRG 7KLV WULSRG DOORZV KLJK DQJOH HOHYDWLRQ
HQDEOLQJWKHPDFKLQHJXQWRIXQFWLRQLQDQDQWLDLUFUDIWFDSDFLW\
7KH3.7DQG3.%DUHYHKLFOHPRXQWHGYHUVLRQVRIWKH3.7KH\DUHVWULSSHGRIVWRFNVLJKWVDQGXWLOL]HDKHDY\EDUUHO7KH3.7LV
IRUPRXQWLQJLQWDQNWXUUHWVDQGKXOOVDQGXWLOL]HVDVROHQRLGIRUUHPRWHILULQJ7KH3.%LVD3.PRGLILHGIRUSLQWOHPRXQWVXWLOL]LQJDVSDGH
JULSV DQG D EXWWHUIO\ WULJJHU
DVVHPEO\
7KH 3.0 LV D
PRGHUQL]HG YHUVLRQ RI WKH
3. ZLWK D OLJKWHU XQIOXWHG
EDUUHO DQG D KLQJHG FDUU\
VWUDS DWWDFKHG WR WKH
EXWWVWRFN ,W ZDV IXUWKHU
OLJKWHQHG E\ XVLQJ VWDPSHG
VWHHO SDUWV UDWKHU WKDQ
PDFKLQHGRUPLOOHGSDUWV
7KH 3. VHULHV
PDFKLQHJXQVKDGD QXPEHU
RI YHU\ LQWHUHVWLQJ IHDWXUHV
)LUVW ZDV WKH WKUHH SRVLWLRQ
H[KDXVW YDOYH IRU WKH JDV
WXEH 7KLV UHJXODWRU YDOYH LV
PHDQW WR EH DGMXVWHG WR
SRVLWLRQ  DQG  DV WKH
ZHDSRQ JURZV GLUW\ IURP
H[WHQGHG EDWWOHILHOG XVH LQ
FRPEDW EHWZHHQ FOHDQLQJV
$QRWKHU LQWHUHVWLQJ IHDWXUH LV WKH IDFW WKDW D ORW RI DGMXVWPHQWV FDQ EH PDGH WR WKH ZHDSRQ XVLQJ WKH HGJH RI D VSHQW EUDVV FDVLQJ 7KH
ZHDSRQDOVRUHTXLUHGPRGLILFDWLRQDIWHUVHYHUDO\HDUVLQVHUYLFH,WRULJLQDOO\XVHGULPPHG[PPDPPXQLWLRQZKLFKGDWHVEDFNWREHIRUH
WKH )LUVW :RUOG :DU ,Q RUGHU WR ORDG QHZHU [PP DPPXQLWLRQ D VSHFLDO H[WUDFWRU V\VWHP KDG WR EH DGGHG WR WKH ZHDSRQ ZKLFK
UHPRYHVWKHQH[WURXQGIURPWKHEHOWHGIHHGZKLOHWKHEROWFDUULHUPRYHVEDFNWRHMHFWWKHMXVWILUHGVSHQWFDVLQJWKHQIHHGVWKHQHZURXQG
LQWRWKHFKDPEHUDVWKHEROWFDUULHUUHWXUQVIRUZDUG
%RWKWKH3.DQG3.0KDYHLQWHJUDWHGELSRGV7KH3.LVIHGIURPDURXQGEHOWKHOGLQDER[IDVWHQHGWRWKHULJKWVLGHRIWKH
JXQ,QWKH3.6FRQILJXUDWLRQWULSRGPRXQWHGDPPXQLWLRQLVIHGIURPDVHSDUDWHER[KROGLQJDRUURXQGEHOWSODFHGRIIWRWKHULJKW
RI WKH ZHDSRQ )RU WKH 3.0 DPPXQLWLRQ LV FRQWDLQHG LQ DQ DVVDXOW PDJD]LQH WKDW DWWDFKHV WR UDLOV XQGHUQHDWK WKH ZHDSRQ ,W KROGV 
URXQGVRIDPPXQLWLRQLQURXQGMRLQDEOHEHOWVWULSV
IQ[2N-%2I2[*"-2N-
&\EHUWKULOOHU
(IIHFW :HLJKW :HLJKW
5DWHRI 5DQJH (PSW\ /RDGHG
:HDSRQ 7\SH $&& &RQ $Y &DOLEHU '0 $PPR )LUH 5HO PHWHUV NJ NJ &RVW
3. +Y\  1 0 [%   >$@ 95   # 
3.0 +Y\  1 0 [%   >&@ 95   # 
6SHFLDO5XOHV

'6\VWHP
'DPDJH 5DQJH 5DWHRI 3XUFKDVH
:HDSRQ 'DPDJH &ULWLFDO 7\SH ,QFUHPHQW )LUH 0DJ 6L]H :HLJKW '& 5HVWULFWLRQ
3. G  EDOOLVWLF  $ % /UJ OE  0LO
3.0 G  EDOOLVWLF  $ % /UJ OE  0LO
6SHFLDO5XOHV

)8'*(
:HDSRQ 6KRWV 5DWHRI)LUH 5DQJH $FF\ 'PJ &RVW 1RWHV
3.  $& 6XSHUE )DLU  
3.0  $& 6XSHUE )DLU  
6SHFLDO5XOHV

$FWLRQ
675 0D[
:HDSRQ 'PJ 7\SH $FF 5PRG 5R) $PP :W &RVW 1RWHV
0LQ 5QJ
3. G 3/        
3.0 G 3/        
6SHFLDO5XOHV
 !
+2$-
$ OLQHDO GHVFHQGDQW RI WKH *HUPDQ
:HDSRQ 53*.QXW
3DQ]HUIDXVW RI :RUOG :DU ,, WKH 53* .QXW ZDV WKH
0DQXIDFWXUHU <HDU 
SULPDU\ LQIDQWU\ DQWLWDQN ZHDSRQ RI WKH (DVWHUQ %ORF
QDWLRQV GXULQJ WKH FROG ZDU 7KH 53* EHJDQ LQ 0D\ 1DWLRQ 5XVVLD
 DV D SDLU RI DQWLWDQN ZHDSRQ SURMHFWV WKH 536 &DOLEHU PP53* 0DJV 
 SRUWDEOH JUHQDGH ODXQFK V\VWHP DQG WKH 536 $FFXUDF\ *URXS 02$
FRPSDQ\ JUHQDGH ODXQFK V\VWHP ,Q OHVV WKDQ  .LOO
PRQWKV ERWK GHVLJQ SURMHFWV ZHUH FRPSOHWHG DQG 9HORFLW\ PV (QHUJ\
ILQLVKHG H[SHULPHQWDO WULDOV ZLWK IO\LQJ FRORUV DQG D YHU\ :HLJKW (PSW\ NJ 52) 66 
UDUH VKRZ RI SROLWLFDO DQG EXUHDXFUDWLF DSSURYDO RI WKHLU /RDGHG NJ 0% 
SHUIRUPDQFH +RZHYHU ZLWK WKH IDFWRU\ WRROLQJ SURFHVV /HQJWK PP %XUVW 
XQGHUWDNHQ LQ  LW ZDV GLVFRYHUHG WKDW WKHUH ZHUH 5DQJH (IIHFW P $XWR 
GLIILFXOWLHV ZLWK WKH 536 WKDW HIIHFWLYHO\ QXOOLILHG WKH 0D[ P &\FOLF 
ZHDSRQ
V H[LVWHQFH DV WKH FRVWHIIHFWLYHQHVV RI WKH 1RWHV
ZHDSRQIHOOWKURXJKWKHIORRULQFRPSDULVRQWRWKH536
 :HDSRQ 53*9.QXW
,QWURGXFHGLQWKHZKHQLWZDVDGRSWHGE\ 0DQXIDFWXUHU <HDU 
WKH 6RYLHW $UP\ WKH 53* HYHQWXDOO\ EHFDPH DV
1DWLRQ 5XVVLD
XELTXLWRXV ZRUOGZLGH DV WKH $. GLG ,Q OHVV WKDQ D
&DOLEHU PP53* 0DJV 
\HDUDQLPSURYHGYHUVLRQWKH53*9ZDVDOVRLVVXHG
WR WKH 6RYLHW DUP\ 2YHU  \HDUV ROG WKH 53* KDV $FFXUDF\ *URXS 02$
EHHQ XVHG HIIHFWLYHO\ LQ FRPEDW DV UHFHQWO\ DV .LOO
2SHUDWLRQ,UDTL)UHHGRPLQ6SULQJ7KHZHDSRQLV 9HORFLW\ PV (QHUJ\
LQ WKH LQYHQWRULHV RI RYHU  FRXQWULHV DQG LV VWLOO :HLJKW (PSW\ NJ 52) 66 
PDQXIDFWXUHG LQ %XOJDULD &KLQD ,UDQ ,UDT 3DNLVWDQ /RDGHG NJ 0% 
5RPDQLDDQG5XVVLD /HQJWK PP %XUVW 
7KH 53* FRQVLVWV RI D UHORDGDEOH ODXQFKHU 5DQJH (IIHFW P $XWR 
ZLWKWZRKDQGJULSVZLWKDODUJHRSWLFDOVFRSHPRXQWHG 0D[ P &\FOLF 
RYHU WKH UHDU JULS 0XFK RI WKH ODXQFK WXEH LV ZUDSSHG +DVXQGHUJRQHXSJUDGHWRWKH53*9PRXQWLQJDELSRG
ZLWK D WKLFN ZRRGHQ KHDW VKLHOG DQG WKH UHDU RI WKH IRUVWDELOLW\HPSW\ZHLJKWNJDQGWKH53*9DQ
1RWHV
ZHDSRQ LV ILWWHG ZLWK D ODUJH IODUHG EODVW VKLHOG $OO 9ZLWKLPSURYHGVLJKWLQJHTXLSPHQWHPSW\ZHLJKW
PRGHOV RI WKH 53* FDQ EH VLJKW LOOXPLQDWHG IRU NJ
QLJKWWLPH XVH ZKLOH WKH ODWHVW PRGHO WKH 53*9 FDQ
PRXQW D YDULHW\ RI WHOHVFRSLQJ LQIUDUHG DQG SDVVLYH :HDSRQ 53*'.QXW
VLJKWV IRU GD\ DQG QLJKW XVH $OO KDYH RSHQ VLJKWV IRU 0DQXIDFWXUHU <HDU 
HPHUJHQF\ XVH 7KH ODXQFKHU LV OLJKW HQRXJK WR EH 1DWLRQ 5XVVLD
HDVLO\ FDUULHG ORDGHG DQG ILUHG E\ D VLQJOH SHUVRQ &DOLEHU PP53* 0DJV 
WKRXJK 6RYLHW GRFWULQH ZDV WR GHSOR\ WKH 53* ZLWK D
$FFXUDF\ *URXS 02$
WHDPRI WZR 7KH VHFRQGPDQZDVD JXQQHU
V DVVLVWDQW
.LOO
ZKR KDG WKH SULPDU\ UHVSRQVLELOLW\ RI SURWHFWLQJ WKH
53*RSHUDWRUIURPVPDOODUPVILUH7KHWHDPGHSOR\HG 9HORFLW\ PV (QHUJ\
ZLWK WKH RSHUDWRU FDUU\LQJ WKH ODXQFKHU DQG WZR URXQGV :HLJKW (PSW\ NJ 52) 66 
DQGWKHDVVLVWDQWFDUULHGWKUHHURXQGV /RDGHG NJ 0% 
$QRWKHU FRPPRQ YDULDQW RI WKH ODXQFKHU ZDV /HQJWK PP %XUVW 
WKH 53*' GHVLJQHG IRU XVH E\ DLUERUQH WURRSV 7KLV 5DQJH (IIHFW P $XWR 
ODXQFKHU EURNH GRZQ IRU HDVLHU VWRZDJH DQG VDIHU 0D[ P &\FOLF 
DLUERUQH GHSOR\PHQW ZLWK WKHWURRSV7KLV ODXQFKHU ZDV 1RWHV
UHSODFHGGXULQJWKH
VE\WKH53*'
7KH 53* KDV DOVR EHFRPH D SUHIHUUHG :HDSRQ 53*
ZHDSRQ RI WHUURULVWV ORRNLQJ WR DVVDVVLQDWH FLYLOLDQ 9,3 0DQXIDFWXUHU <HDU 
WDUJHWV7KHZHDSRQKDVEHHQXVHGH[WHQVLYHO\DJDLQVW 1DWLRQ 5XVVLD
VXFK WDUJHWV E\ WKH ,ULVK 5HSXEOLFDQ $UP\ VLQFH WKH &DOLEHU PP53* 0DJV 

V DV ZHOO DV 6RXWK $PHULFDQ GUXJ FDUWHOV WKURXJK $FFXUDF\ *URXS 02$
WKH
VDQG
V7KHIRUFHVRIUHEHORUJDQL]DWLRQVDQG
.LOO
ZDUORUGV DOVR XWLOL]H WKH 53* DV D ZHDSRQ DJDLQVW
9HORFLW\ PV (QHUJ\
DUPRUHGYHKLFOHVDQGORZIO\LQJVORZ DLUFUDIW
:HLJKW (PSW\ NJ 52) 66 
7RJLYH\RXDQLGHDRIKRZHIIHFWLYHWKH53*
/RDGHG NJ 0% 
 LV 'XULQJ WKH 6RYLHW$IJKDQ :DU IURP  WR 
$IJKDQV XVLQJ 6WLQJHUV 53*
V DQG 53*
V /HQJWK PP %XUVW 
PDQDJHGWRGHVWUR\MHWVKHOLFRSWHUVWDQNV 5DQJH (IIHFW P $XWR 
DUPRUHGSHUVRQQHOFDUULHUVDUWLOOHU\ SLHFHVRU 0D[ P &\FOLF 
PRUWDU FDUULDJHV  FRPPXQLFDWLRQV RU FRQWURO 1RWHV
YHKLFOHV  HQJLQHHULQJ YHKLFOHV DQG  WUXFNV
%RWK%ODFNKDZNVVKRWGRZQLQ0RJDGLVKXLQZHUHEURXJKWGRZQE\53*ILUH'XULQJ2SHUDWLRQ,UDTL)UHHGRPEHWZHHQ0DUFKDQG
$SULO  WKH53*ZDVXVHGE\ ,UDTLIRUFHVWRGHVWUR\RULQFDSDFLWDWHDERXW 86DQG %ULWLVK DLUFUDIWDQGJURXQGYHKLFOHV ,QERUGHU
VNLUPLVKHVZLWKJXHULOODVGXULQJWKH$SDUWKHLGHUDRI6RXWK$IULFD
VKLVWRU\53*
VZHUHXVHGHIIHFWLYHO\LQKXQGUHGVRIERUGHUFODVKHVDQG
KLWDQGUXQUDLGVGHVWUR\LQJDUPRUHGDQGXQDUPRUHGYHKLFOHVDVZHOODVRXWSRVWVEXQNHUVDQGRWKHUKDUGHQHGVWUXFWXUDOWDUJHWV
7KH53*LVWKHVXFFHVVRUWRWKH53*7KH53*ZDVHVVHQWLDOO\DPRGLILHGFRS\RIWKH*HUPDQ3DQ]HUIDXVWDQGZDVSXWLQWR
VHUYLFHLQWKHHDUO\
VDORQJVLGHWKH$.7KH53*ODXQFKHUZDVWKHVDPHVL]HDVWKH53*ODXQFKHUEXWKDGD VLQJOHJULSDQGQR
EODVWVKLHOG$GGLWLRQDOO\LWXVHGVLPSOHLURQVLJKWVIRUWDUJHWLQJKHQFHLWKDGDQ HIIHFWLYHUDQJHRIDPHUHPHWHUV$PDMRUSUREOHPZLWK
WKH 53* ZDV WKH IDFW WKDW LWV DPPXQLWLRQ KDG WR EH DVVHPEOHG EHIRUH ILULQJ WKH URFNHW PRWRU KDG WR EH VFUHZHG LQWR WKH EDFN RI WKH
ZDUKHDGWKHQORDGHGLQWRWKHODXQFKHU+RZHYHULQFRPSDULVRQWKH53*ZDVDYHU\OLJKWDQGHYHQPRUHSRUWDEOHZHDSRQVWLOOXVHIXOLQ
FRQIOLFWVEHWZHHQWKLUGZRUOGIRUFHVDVZHOODVZLWKWKH&KLQHVHPLOLWDU\
!
+2$-
CIN
2Q-
 !
+2$-
CIN
2[--
3*
7KH3*LVWKHVWDQGDUGPP+($7DQWLWDQNPDGHIRUWKH53*ILOOHGZLWKDVKDSHG
0XQLWLRQ 3* H[SORVLYH PL[WXUH RI  5'; DQG  ZD[  'HVLJQHG WR IO\ LQ D IDVW IODW WUDMHFWRU\ WR
7\SH +($7$QWLWDQN HQKDQFH DFFXUDF\ WKH URFNHW XWLOL]HV D VHW RI SULPDU\ IROGLQJ VWDELOL]LQJ ILQV WKDW GHSOR\
PPRYLQJ RQFHLWOHDYHVWKHODXQFKWXEHFRXSOHGZLWKDVHFRQGDU\VHW RIILQVDWWKHYHU\UHDURIIVHW
'LUHFW)LUH5DQJH LQRUGHU WRLQGXFHDVORZVSLQ WRLQGXFHWKHVSLQ VWDELOL]DWLRQEXOOHWVXVH LWFDQEH XVHG
PVWDWLRQDU\
,QGLUHFW)LUH5DQJH P HIIHFWLYHO\ RXW WR  PHWHUV DJDLQVW PRYLQJ WDUJHWV DQG  PHWHUV DJDLQVW VWDWLRQDU\
:HLJKW NJ WDUJHWVDQGDVDQ LQGLUHFWILUHZHDSRQRXW WRPHWHUVWKHOLPLWGHWHUPLQHGE\LWV
3HQHWUDWLRQ PP VHFRQG DXWRPDWLF VHOIGHVWUXFW PHFKDQLVP :KHQ EX\LQJ 3* PXQLWLRQV WKH JHQHUDO
%ODVW5DGLXV P FRQFHQVXV LV WKDW DPPXQLWLRQ RI &KLQHVH PDQXIDFWXUH VKRXOG EH FKRVHQ RYHU HDVWHUQ
HXURSHDQ SURGXFWV 7KH &KLQHVH URXQGV DUHFRQVLGHUHGWR EHVLJQLILFDQWO\ PRUHUHOLDEOH
WKDQWKHLUHDVWHUQHXURSHDQFRXQWHUSDUWVKROGLQJXSWRDEXVH
EHWWHUDQG VXIIHULQJ DIDUORZHUUDWHRIPLVILUHRUPDOIXQFWLRQ
FRPSDUHG WR WKH 5XVVLDQPDGH DPPXQLWLRQ 7KLV URXQG
HQWHUHGVHUYLFHLQ

3*0
7KH3*0LVDQLPSURYHGYHUVLRQRIWKH3*URXQGXVLQJDVRPHZKDWVPDOOHUPP
0XQLWLRQ 3*0 +($7 DQWLDUPRU ZDUKHDG 7KLV VPDOOHU ZDUKHDG DOORZV D IDVWHU IOLJKW ORQJHU PD[LPXP
7\SH +($7$QWLWDQN UDQJHDQGZLWKWKHXVHRILPSURYHGH[SORVLYHVWKH3*0PDLQWDLQVDQHTXLYDOHQWOHYHO
RISHQHWUDWLRQZKHQFRPSDUHGWRWKHROGHU3*DPPXQLWLRQ$VZLWKWKH3*URXQGRI
PPRYLQJ
'LUHFW)LUH5DQJH WKHYDULRXVPDQXIDFWXUHUVZRUOGZLGHWKHDPPXQLWLRQFRPLQJRXWRI&KLQDLVFRQVLGHUHG
PVWDWLRQDU\
WREHWKHPRVWUHOLDEOHRQWKHEDWWOHILHOG7KLVURXQGHQWHUHGVHUYLFHLQ
,QGLUHFW)LUH5DQJH P
:HLJKW NJ
3HQHWUDWLRQ PP
%ODVW5DGLXV P

3*1
7KH 3*1 ZDV DQ DQWLWDQN +($7 URXQG GHVLJQHG WR JUHDWO\ HQKDQFH SHQHWUDWLRQ E\
0XQLWLRQ 3*1 XWLOL]LQJWKHPPJUHQDGHVKHOORIWKH3*URXQGSDFNHGZLWKWKHHQKDQFHGH[SORVLYHV
7\SH +($7$QWLWDQN RI WKH 3*0 URXQG 7KH UHVXOW ZDV D SRZHUIXO ZDUKHDG ZHLJKLQJ LQ DW D PHUH  NJ
PPRYLQJ DQGFDSDEOHRISHQHWUDWLQJRYHULQFKHVRIDUPRUSODWH7KHLPSURYHPHQWWRSHQHWUDWLRQ
'LUHFW)LUH5DQJH ZDVE\URXJKO\DVLJQLILFDQWUDWHE\PRVWPLOLWDU\VWDQGDUGV
PVWDWLRQDU\
,QGLUHFW)LUH5DQJH P
:HLJKW NJ
3HQHWUDWLRQ PP
%ODVW5DGLXV P

3*9
7KH3*9LVGHVLJQHGDVDVWHSEHWZHHQWKH3*DQG WKH3*07KH3*9XWLOL]HV
0XQLWLRQ 3*9 WKHPPZDUKHDGVKHOORIWKH3*0EXWSDFNVLWZLWKWKHZHDNHUH[SORVLYHRIWKH3*
7\SH +($7$QWLWDQN  7KH UHVXOW ZDV DQ LQH[SHQVLYH ZDUKHDG WKDW ODFNV SHQHWUDWLQJ SRZHU DJDLQVW D
PPRYLQJ VLJQLILFDQW QXPEHU RI DUPRUHG YHKLFOHV DQG WDQNV LQ WKH ZRUOG
V FXUUHQW LQYHQWRULHV 7KH
'LUHFW)LUH5DQJH 9 LQ WKH GHVLJQDWLRQ LQGLFDWHV WKH URXQG LV IRU LPSURYHG 53* ODXQFKHUV VSHFLILFDOO\
PVWDWLRQDU\
,QGLUHFW)LUH5DQJH P WKH53*953*9DQG53*97KLVURXQGHQWHUHGVHUYLFHLQ
:HLJKW NJ
3HQHWUDWLRQ PP
%ODVW5DGLXV P
!
+2$-
3*9/
7KH 3*9/ LV DQ LPSURYHG 53* URXQG XWLOL]LQJ D ZDUKHDG LQ D PP VKHOO $V DQ
0XQLWLRQ 3*9/ LPSURYHG ZDUKHDG LW LV LQWHQGHG IRU XVH ZLWK WKH 53*9 VHULHV LPSURYHG ODXQFKHUV
7\SH +($7*HQHUDO3XUSRVH UDWKHUWKDQWKHHDUOLHUPRGHOVOLNHWKH53*RU53*'7KH3*9/LVQ
WVLPSO\DQDQWL
PPRYLQJ DUPRUURXQGQXWLVGHVLJQHGIRUJHQHUDOSXUSRVHXVH$ORQJZLWKEHLQJFDSDEOHRIFXWWLQJ
'LUHFW)LUH5DQJH
PVWDWLRQDU\ WKURXJK DW OHDVW D KDOI PHWHU RI KRPRJHQRXV VWHHO UROOHG DUPRU LW FDQ FXW WKURXJK 
,QGLUHFW)LUH5DQJH P PHWHUVRIVWHHOSODWHPHWHUVRIUHLQIRUFHGFRQFUHWHDQGPHWHUVRIILHOGZRUNVVXFK
:HLJKW NJ DVGLUWHPEDQNPHQWVRUORJUHLQIRUFHGEXQNHUVDQGSLWV7KLVURXQGZDVGHYHORSHGIRUWKH
3HQHWUDWLRQ PP 6RYLHW$UP\LQ
%ODVW5DGLXV P

3*95
7KH 3*95 LV WKH KHDYLHVW +($7 URXQG WR EH PDQXIDFWXUHG IRU WKH 53*9 D PP
0XQLWLRQ 3*9/ JUHQDGHRQDPPURFNHWZHLJKLQJLQDWNJ7KH3*95LVDQLPSRUWDQWGHYLDWLRQLQ
7\SH +($7*HQHUDO3XUSRVH WKH53*DPPXQLWLRQGHVLJQEHLQJDWDQGHPFKDUJHGHVLJQDWHGDV+($777KHURFNHW
ZDV GHVLJQHG WR GHIHDW DUPRUHG YHKLFOHV HPSOR\LQJ H[SORVLYH UHDFWLYH DUPRU :LWK D
PPRYLQJ
'LUHFW)LUH5DQJH WDQGHP FKDUJH WKH ILUVW VPDOOHU ZDUKHDG GHWRQDWHV RQ LPSDFW GLVUXSWLQJ WKH H[SORVLYH
PVWDWLRQDU\
HIIHFWRIWKH(5$DQGDOORZLQJWKHPDLQZDUKHDGRIWKHURFNHWWRSDVVWRWKHYHKLFOH
VPDLQ
,QGLUHFW)LUH5DQJH P
OD\HURIDUPRUXQRSSRVHG7KHPDLQZDUKHDGWKHQGHWRQDWHVDQGEXUQVWKURXJKXSWR
:HLJKW NJ
PLOOLPHWHUV RI UROOHG KRPRJHQRXV DUPRU SODWLQJ +RZHYHU WKH WDQGHP ZDUKHDG DOVR
3HQHWUDWLRQ PP RYHUFRPHVWKHPRVWVHULRXVIODZRIWKH53*
VSUHYLRXVPXQLWLRQV3UHYLRXVURXQGVXVHG
%ODVW5DGLXV P SLH]RHOHFWULF IX]LQJ PHFKDQLVP WKDW FRXOG EH VKRUWHG RXW HDVLO\ E\ LPSDFWLQJ DJDLQVW
FRQFHUWLQDZLUHFKDLQOLQNIHQFHZLUHPHVKDQGQHWWLQJDQGWKHOLNH:KHQDQ53*URXQG
VWXFN VXFK PDWHULDOV LW ZRXOG RIWHQ EHFRPH HQWDQJOHG DQG
EXUQ RXW 7KLV PHWKRG LV VR HIIHFWLYH WKDW HYHQ WKH VHOI
GHVWUXFWVDIHW\PHFKDQLVPWKDWGHWRQDWHVWKHURXQGDIWHU
VHFRQGV LV EXUQHG RXW DV ZHOO 7KH 3*95 LQVWHDG
GHWRQDWHV WKH ILUVW ZDUKHDG RQ LPSDFW ZLWK WKHVH ZLUH
PDWHULDOV DQG FRQWLQXHV RQ EULHIO\ EHIRUH WKH PDLQ ZDUKHDG
GHWRQDWHV7KLVURXQGLVDOVRFDSDEOHDJDLQVWWDUJHWVRWKHUWKDQDUPRUHGYHKLFOHV,WZLOOSXQFKWKURXJKPPRI5+$DWOHDVWWZRPHWHUVRI
EULFN PHWHUV RI UHLQIRUFHG FRQFUHWH RU QHDUO\  PHWHUV RI HDUWKZRUNV 7KH 3*95 URXQG HQWHUHG VHUYLFH ZLWK WKH 5XVVLDQ PLOLWDU\ LQ
DQGWKXVIDU5XVVLDLVWKHRQO\VRXUFHIRUWKHVHPXQLWLRQV

2*9
)RURYHUWKLUW\ \HDUVWKH53*V\VWHP ZDV SXUSRVHEXLOWWR SULPDULO\ GHIHDWDUPRU DQG
0XQLWLRQ 2*2*9 KDUGHQHG WDUJHWV ,W
V EODVW DQG VKUDSQHO HIIHFWV ZHUH VHFRQGDU\ HIIHFWV RI VRPH EHQHILW
7\SH +($7*HQHUDO3XUSRVH DJDLQVWVRIWHUWDUJHWV$IWHUWKHIDOORIWKH8665GHVLJQHUVFRXOGILQDOO\HQMR\WKHIUHHGRQ
'LUHFW)LUH5DQJH P WRH[SDQGWKH53*EH\RQGLWVDQWLDUPRUUROH7KHILUVWQHZPXQLWLRQSURGXFHGDIWHUWKH
,QGLUHFW)LUH5DQJH P HQG RI WKH FROG ZDU ZDV WKH 2* +LJK ([SORVLYH )UDJPHQWDU\ +() URXQG 7KLV
:HLJKW NJ PXQLWLRQ LV D GHGLFDWHG DQWLSHUVRQQHO URXQG ZKLFK LV DOVR HIIHFWLYH DJDLQVW XQDUPRUHG
3HQHWUDWLRQ PP DQG OLJKW DUPRUHG YHKLFOHV 7KH 2* ZDV LQWURGXFHG WR 5XVVLDQ LQYHQWRULHV LQ WKH PLG
%ODVW5DGLXV P 
VDQGWKH2*9ZDVLQWURGXFHGLQ

*7%*
7KH*7%*LVDQRWKHUWKHUPREDULFPXQLWLRQIRUWKH53*PDQXIDFWXUHGE\%XOJDULD,W
0XQLWLRQ 2*2*9 LVDPRUHVXEVWDQWLDOVKHOOWKDQWKH5XVVLDQ7%**DQGFDSDEOHRIFDXVLQJTXLWHDELW
7\SH +($7*HQHUDO3XUSRVH PRUHGDPDJH7KLVURXQGZDVH[SRVHGWRWKHSXEOLFLQ
'LUHFW)LUH5DQJH P
,QGLUHFW)LUH5DQJH P
:HLJKW NJ
3HQHWUDWLRQ PP
%ODVW5DGLXV P
 !
+2$-
7%**
7KH 7%*9 LV D WKHUPREDULF JUHQDGH ,Q RWKHU ZRUGV LW LV D URFNHW SURSHOOHG JUHQDGH
0XQLWLRQ 2*2*9 WKDWGRHVQ
WUHO\RQWKHSRZHURIDQLQWHUQDOH[SORVLRQEXWLQVWHDGXWLOL]HVWKHFRQFHSWRI
7\SH +($7*HQHUDO3XUSRVH WKH)XHO$LU([SORVHRU)$(2QLPSDFWWKHURXQGYHQWVDODUJHFORXGRIDHURVROYDSRU
'LUHFW)LUH5DQJH P WKHQ LJQLWHV WKH FORXG UHVXOWLQJ LQ D GHWRQDWLRQ WKDW SURGXFHV D UDSLG IRUPHG KLJK
,QGLUHFW)LUH5DQJH P SUHVVXUHEODVWZDYHHTXLYDOHQWWRWKDWRIDPPKLJKH[SORVLYHDUWLOOHU\VKHOORUPRUWDU
:HLJKW NJ ERPE7KLVURXQGHQWHUHGVHUYLFHDIWHU
3HQHWUDWLRQ PP
%ODVW5DGLXV P

3*
7KH3*ZDVWKHURFNHWSURGXFHGIRUXVHZLWKWKH53*URFNHWODXQFKHU7KH3*ZDV
0XQLWLRQ 3* D KHIW\ OLWWOH URFNHW GHYHORSHG DW WKH HQG RI :: ZHLJKLQJ LQ DW  NJ 7KH ZHDSRQ
ZDVQ
WSDUWLFXODUO\DFFXUDWHDQGFRXOGRQO\SHQHWUDWHXSWRPPRIUROOHGKRPRJHQRXV
7\SH +($7*HQHUDO3XUSRVH
VWHHODUPRU5+$7KHURFNHWFRXOGEHXVHGHIIHFWLYHO\DJDLQVWVWDWLRQDU\RUVORZPRYLQJ
'LUHFW)LUH5DQJH P
WDUJHWVRXWWRDERXWPHWHUV:KLOHWKHURFNHWFRXOGIO\DIXOONLORPHWHUQLQHWHQWKVRI
,QGLUHFW)LUH5DQJH P WKDWUDQJHLWZDVRQO\XVHIXODVDQLQGLUHFWILUHVXSSUHVVLRQZHDSRQ
:HLJKW NJ
3HQHWUDWLRQ  PP
%ODVW5DGLXV P

,UDTL*KRVW0XQLWLRQV
7KH,UDTLVDUHUXPRUHGWRFXUUHQWO\KDYHRULQWKHSDVWKDGSRVVHVVLRQRIDQXPEHURI53*FRPSDWLEOHURFNHWVRIW\SHVQRWILHOGHG
E\RWKHUQDWLRQV7KHILUVWLV DQDSDOPEDVHG53*URXQGHIIHFWLYHO\VXSSO\LQJWKHDELOLW\WRVPDVKVHYHUDOPRORWRYFRFNWDLOVRQDWDUJHWIURP
DVWDQGRIIGLVWDQFHRIXSWRPHWHUV
7KHVHFRQGUXPRUHGPXQLWLRQLVDFKHPLFDOZHDSRQGHSOR\PHQWURXQG6XSSRVHGO\ORDGHGZLWKHLWKHUDQHUYHDJHQWOLNHWDEXQRU
6DULQ RU D EORRG DJHQW OLNH &\DQRJHQ &KORULGH RU &\DQRJHQ %URPLGH 5HSRUWV IURP WKH ,UDQ,UDTZDU LQGLFDWH WKDW WKHVH FKHPLFDO URXQGV
ZHUH HIIHFWLYH DW NLOOLQJ D YHKLFOH FUHZ ZLWK OLWWOH DGGLWLRQDO GDPDJH WR WKH YHKLFOH RU VXUURXQGLQJ DUHD WKRXJK WKH URXQGV VXIIHUHG D 
IDLOXUHUDWH5HSRUWVIURPWKH,UDQ,UDTZDUVXJJHVWWKDWWKHURXQGVGLVSHUVHGDFORXGRIGXVWRQWKHWDUJHW%HWZHHQWKHFORXGRIGXVWKLJK
IDLOXUHUDWHDQG,UDTLLQWHUHVWLQF\DQLGHFRPSRXQGVGXULQJWKDWWLPHIUDPHWKHPRVWOLNHO\FDQGLGDWHWRILOOWKHVH53*URXQGVLV&\DQRJHQ
%URPLGH7KHFKHPLFDOZHDSRQLVLQVROLGIRUPDWDOODWPRVSKHULFWHPSHUDWXUHVH[SODLQLQJWKHSRZGHUZLWQHVVHGLQWKHUHSRUWVDQGLWLVDOVR
KLJKO\FRUURVLYHZKLFKZRXOGHDVLO\FRQWULEXWHWRWKHH[FHVVLYHO\KLJKIDLOXUHUDWH(YLGHQFHVXJJHVWVWKDWWKHVHPXQLWLRQVZHUHSDUWRIDILHOG
WHVWSURJUDPGXULQJWKH,UDQ,UDT:DUDQGLWVHHPVOLNHO\WKDWWKHHQWLUHVWRFNSLOHZDVHLWKHUFRPSOHWHO\FRQVXPHGLQGHSOR\PHQWGXULQJWKH
ZDURUGHVWUR\HGZLWKWHUPLQDWLRQRIWKHSURJUDPGXHWRWKHKLJKIDLOXUHUDWHZLWKQRPXQLWLRQVRIWKLVW\SHVXUYLYLQJIRU'HVHUW6WRUPLQ
OHWDORQH2SHUDWLRQ,UDTL)UHHGRPLQ
+DUG GDWD RQ ERWK WKHVH PXQLWLRQV LV YLUWXDOO\ LPSRVVLEOH WR FRPH E\ ([DPSOHV RI ERWK W\SHV RI PXQLWLRQV GR QRW H[LVW DQG WHFKQLFDO
LQIRUPDWLRQEOXHSULQWVIRUERWKKDYH\HWWR EHXQFRYHUHGE\:0'VHDUFKHVLQ ,UDT$OOGDWDLVH[WUDSRODWHGIURPEDWWOHILHOG UHSRUWVIURP WKH
,UDQ,UDT:DUZKHQWKHVHZHDSRQVZHUHNQRZQWRKDYHEHHQXVHG6LQFHQRH[DFWLQIRUPDWLRQFDQEHWUDFNHGGRZQWKHUHLVFXUUHQWO\QR
GDWDEORFNOLVWHGKHUHIRUHLWKHU([WUDSRODWHGVWDWLVWLFVIRUERWKW\SHVDUHOLVWHGXQGHUWKHZHDSRQVWDWLVWLFVIRU&\EHU7KULOOHUDQG'
!
+2$-
&\EHUWKULOOHU
(IIHFW :HLJKW :HLJKW
5DWHRI 5DQJH (PSW\ /RDGHG
:HDSRQ 7\SH $&& &RQ $Y &DOLEHU '0 $PPR )LUH 5HO PHWHUV NJ NJ &RVW
53* +Y\  1 0 PP    67    
53* +Y\  1 0 PP    95    
53*9 +Y\  1 0 PP    5(    
53*' +Y\  1 0 PP    5(    
3(1
3*PP+($7   1 0    67    
GP
3(1
3*PP+($7   1 0    67    
GP
3(1
3*0PP+($7   1 0    67    
GP
3(1
3*1PP+($7   1 0    67    
GP
3(1
3*9PP+($7   1 0    67    
GP
3(1
3*9/PP+($7   1 0    67    
GP
3(1
3*95PP+($77   1 0    67    
GP
3(1
2* PP+(   1 0    67    
GP
3(1
2*9PP+(   1 0    67    
GP
3(1
*7%*PP)$(   1 0 G    67    
P
3(1
7%**PP)$(   1 0 G    67    
P
,UDTL1DSDOP0XQLWLRQ   1 02 'P    67    
,UDTL&KHPLFDO0XQLWLRQ   1 02 6SHFLDO    67    
6SHFLDO5XOHV 6HH%,2&+(0:DUIDUHUXOHVLQWKH&\EHU7KULOOHUFRUHUXOHVIRUGHWDLOVRQFKHPLFDOZHDSRQVXVHGLQWKH,UDTL&KHPLFDO0XQLWLRQV

'6\VWHP
'DPDJH 5DQJH 5DWHRI 3XUFKDVH
:HDSRQ 'DPDJH &ULWLFDO 7\SH ,QFUHPHQW )LUH 0DJ 6L]H :HLJKW '& 5HVWULFWLRQ
53*       /UJ OE  0LO
53*       /UJ OE  0LO
53*9       /UJ OE  0LO
53*'       /UJ OE  0LO
3*PP+($7 3(1G¶  ILUH    /UJ OE  0LO
3*PP+($7 3(1G¶  ILUH    /UJ OE  0LO
3*0PP+($7 3(1G¶  ILUH    /UJ OE  0LO
3*1PP+($7 3(1G¶  ILUH    /UJ OE  0LO
3*9PP+($7 3(1G¶  ILUH    /UJ OE  0LO
3*9/PP+($7 3(1G¶  ILUH    /UJ OE  0LO
3*95PP+($77 3(1G¶  ILUH    /UJ OE  0LO
2* PP+( 3(1G¶  VODVKLQJ    /UJ OE  0LO
2*9PP+( 3(1G¶  VODVKLQJ    /UJ OE  0LO
*7%*PP)$( 3(1G¶  FRQFXVVLRQ    /UJ OE  0LO
7%**PP)$( 3(1G
 FRQFXVVLRQ    /UJ OE  0LO
,UDTL1DSDOP0XQLWLRQ G ILUH    /UJ OE  0LO
,UDTL&KHPLFDO0XQLWLRQV 6SHFLDO  3RLVRQ    /UJ OE  0LO
2SWLRQDOO\WKHGDPDJHIRUWKH3*VHULHVDPPXQLWLRQFDQEHGLYLGHGEHWZHHQILUHW\SHDQGVODVKLQJW\SHVLQFHWKH3*VHULHVURXQGV
GRSURGXFHDVL]DEOHDPRXQWRIVKUDSQHOIURPWKHLUVKHOOFDVLQJV
,UDTL1DSDOP0XQLWLRQVGLVSHUVHIODPPDEOHPDWHULDOWKURXJKH[SORVLYHIRUFHVSODVKUDGLXVLVIHHWUDWKHUWKDQIHHW6SODVK
GDPDJHLVGUDWKHUWKDQSRLQW
6SHFLDO5XOHV
,UDTL&KHPLFDO0XQLWLRQV 3OHDVHVHHWKHVHFWLRQRQFKHPLFDOZDUIDUHIRUSURSHUVWDWLVWLFVDQGHIIHFWVIRUFKHPLFDOZHDSRQV7KHVH
ZLOOVXSSODQW WKHUXOHVRQSDJHRI WKH' 0RGHUQFRUHUXOHVVHHLQJDV6DULQJDVIRUH[DPSOHGDPDJHVWKHQHUYRXVV\VWHP
DIIHFWLQJ'(;,17:,6XVXDOO\SHUPDQHQWLQQDWXUHUDWKHUWKDQWKHDXWRLPPXQHV\VWHPDIIHFWLQJ&21 6757KHVHDGGLWLRQDO
UXOHVZLOORQO\DIIHFWWKHSRLVRQVOLVWHGDVFKHPLFDORUELRORJLFDOZHDSRQV
 !
+2$-
)8'*(
:HDSRQ 6KRWV 5DWHRI)LUH 5DQJH $FF\ 'PJ &RVW 1RWHV
53*  66  )DLU  
53*  66  )DLU  
53*9  66  )DLU  
53*'  66  )DLU  
3*PP+($7   3RRU   3RRU3HQHWUDWLRQ
3*PP+($7   )DLU   0HGLRFUH3HQHWUDWLRQ
3*0PP+($7   )DLU   0HGLRFUH3HQHWUDWLRQ
3*1PP+($7   )DLU   )DLU3HQHWUDWLRQ
3*9PP+($7   )DLU   0HGLRFUH3HQHWUDWLRQ
3*9/PP+($7   )DLU   0HGLRFUH3HQHWUDWLRQ
3*95PP+($77   )DLU   *RRG3HQHWUDWLRQ
2* PP+(   3RRU   3RRU3HQHWUDWLRQ
2*9PP+(   3RRU   3RRU3HQHWUDWLRQ
*7%*PP)$(   )DLU   3RRU3HQHWUDWLRQ
7%**PP)$(   0HGLRFUH   3RRU3HQHWUDWLRQ
,UDTL1DSDOP0XQLWLRQ   )DLU  
,UDTL&KHPLFDO0XQLWLRQV   )DLU 
6SHFLDO5XOHV

$FWLRQ
675 0D[
:HDSRQ 'PJ 7\SH $FF 5PRG 5R) $PP :W &RVW 1RWHV
0LQ 5QJ
53*       U   
53*       U   
53*9       U   
53*'       U   
G
3*PP+($7 3/       

G
3*PP+($7 3/       

G
3*0PP+($7 3/       

G
3*1PP+($7 3/       

G
3*9PP+($7 3/       

G
3*9/PP+($7 3/       

G
3*95PP+($77 3/       

G
2* PP+( %/       

G
2*9PP+( %/       

G
*7%*PP)$( %/       

G
7%**PP)$( %/       

,UDTL1DSDOP0XQLWLRQ G 6S       
,UDTL&KHPLFDO0XQLWLRQV 6S 6S       
6SHFLDO5XOHV
 CIQ
7KH 53. 5XFKQRL 3XOHP\RW .DODVKQLNRYD RU .DODVKQLNRY /LJKW 0DFKLQHJXQ ZDV GHYHORSHG WR UHSODFH WKH 53' DV WKH 6RYLHW
VTXDG OLJKW VXSSRUW ZHDSRQ LVVXHG RQH SHU WHQPDQ
:HDSRQ 53.
VTXDG 7KH 53. LV D PRGLILHG $. DQG ODWHU $.0
0DQXIDFWXUHU <HDU 3
ULIOH ZKLFK KDV UHFHLYHG D VWXUGLHU UHFHLYHU D KHDYLHU
1DWLRQ 5XVVLD
DQG ORQJHU QRQGHWDFKDEOH EDUUHO ZLWK D QRQGHWDFKDEOH
IROGLQJELSRGDQGUHFRQWRXUHGZRRGHQEXWWVWRFN6LJKWV &DOLEHU [PP 0DJV 
ZHUHUHFDOLEUDWHGIRUWKHORQJHUEDUUHODQGWKHUHDUVLJKW $FFXUDF\ *URXS 02$
ZDV UHSODFHG ZLWK RQH ZLWK ZLQGDJH DGMXVWPHQWV 7KH .LOO
53. ZDV LQWURGXFHG LQ  DQG HQWHUHG VHUYLFH LQ 9HORFLW\ PV (QHUJ\
 7KH 6RYLHWV UHSODFHG LW ZLWK WKH 53. EXW :HLJKW (PSW\ NJ 52) 66 
UHWDLQHG WKH 53. IRU VHFRQG OLQH LQIDQWU\ XQLWV DQG WKH /RDGHG NJ 0% 
SDUDPLOLWDU\ /HQJWK PPPPIRUIROGHG53.6 %XUVW 
$ VHFRQG YHUVLRQ WKH 53.6 ZDV PDGH IRU 5DQJH (IIHFW P $XWR 
SDUDWURRSGHSOR\PHQW/LNHWKHRWKHU$.6ZHDSRQVWKH 0D[ P &\FOLF 
GLIIHUHQFHZDVWKHDGGLWLRQRIDIROGLQJZRRGHQRUPHWDO /RDGHGZLWKDURXQGGUXPPDJD]LQHLQFUHDVHVWKH
1RWHV
EXWWVWRFN 1HDUO\ DOO PHFKDQLFDO SDUWV RI WKH 53. DUH ZHLJKWWRNJ7KH53.6HPSW\ZHLJKWLVNJ
LQWHUFKDQJDEOHZLWKWKH$.DQG$.0
7KH 53. KDV RQH VLJQLILFDQW SUREOHP WKH EDUUHO FDQ
W EH FKDQJHG TXLFNO\ 7KLV PHDQV WKH ZHDSRQ FDQ ZDVLO\ RYHUKHDW ZLWK
VXVWDLQHGILUHIURPWKHKLJKHUFDSDFLW\PDJD]LQHV:KHQWKHJXQQHUH[FHHGVDUDWHRIILUHRIRYHUURXQGVSHUPLQXWHIRUPRUHWKDQDIHZ
PLQXWHVWKHZHDSRQ:,//RYHUKHDW$GGLWLRQDOO\ZKHQRYHUKHDWLQJWKHIDFWWKDWWKHZHDSRQILUHVIURPDFORVHGEROWWKLVRYHUKHDWLQJWHQGV
WRFDXVHDFRRNRII)RUWXQDWHO\ZLWKWKHRWKHUQLQHPHQRIDVTXDGFDUU\LQJ$.ULIOHVDOOFDSDEOHRIDXWRPDWLFILUHWKLVSUREOHPZDVUHODWLYHO\
QXOOLILHGDVULIOHVTXDGVGHYHORSHGWDFWLFVWRGHDOZLWKWKHWURXEOH$QRWKHUSUREOHPZDVWKHODFNRIDJDVUHJXODWRUPHFKDQLVPOLNHWKDWRQWKH
3.:KHQWKHJXQLVFOHDQWKLVOHDGVWRDYHU\URXJKDFWLRQDQGYLJRURXVHMHFWLRQRIVSHQWFDVLQJVWRWKHULJKWDQGUHDU$QGDVGHEULVDQG
UHVLGXHDFFXPXODWHRQWKHJDVSRUWWKHUDWHRIILUHIRUWKHJXQVORZV
CIQ
&\EHUWKULOOHU
(IIHFW :HLJKW :HLJKW
5DWHRI 5DQJH (PSW\ /RDGHG
:HDSRQ 7\SH $&& &RQ $Y &DOLEHU '0 $PPR )LUH 5HO PHWHUV NJ NJ &RVW
53. $5  7 0 %ORF   >66@ 95    
53.6 $5  7 0 %ORF   >$@>&@ 95    
6SHFLDO5XOHV

'6\VWHP
'DPDJH 5DQJH 5DWHRI 3XUFKDVH
:HDSRQ 'DPDJH &ULWLFDO 7\SH ,QFUHPHQW )LUH 0DJ 6L]H :HLJKW '& 5HVWULFWLRQ
53. G  EDOOLVWLF  6$  /UJ OEV  0LO
53.6 G  EDOOLVWLF  6$  /UJ OEV  0LO
6SHFLDO5XOHV

)8'*(
:HDSRQ 6KRWV 5DWHRI)LUH 5DQJH $FF\ 'PJ &RVW 1RWHV
53.  6$$& 0HGLRFUH 0HGLRFUH  
53.6  6$$& 0HGLRFUH 0HGLRFUH  
6SHFLDO5XOHV

$FWLRQ
675 0D[
:HDSRQ 'PJ 7\SH $FF 5PRG 5R) $PP :W &RVW 1RWHV
0LQ 5QJ
53. G 3/        
53.6 G 3/        
6SHFLDO5XOHV
 CIQ

7KH53.ZDVGHVLJQHGDVDUHSODFHPHQWIRU
:HDSRQ 53.
WKH53.WREHLVVXHGDORQJVLGHWKH$.DVVDXOWULIOHDV
0DQXIDFWXUHU <HDU 
SDUW RI WKH 6RYLHW GULYH WR VZLWFK WR WKHLU QHZ PP
FDOLEHU DPPXQLWLRQ LQ WKH 
V $ORQJ ZLWK VZLWFKLQJ WKH 1DWLRQ 5XVVLD
53. WR WKH 53. WKH PDFKLQH JXQ DOVR UHSODFHV WKH &DOLEHU [PP 0DJV 
3.0 7KH 53.LVWRWKH$.ZKDW WKH53. LV WRWKH $FFXUDF\ *URXS 02$
$.0 DQ RYHUVL]HG YDULDQW RI DQRWKHUZLVH QRUPDO DVVDXOW .LOO
ULIOH )RU WKH 53. D ZLGH DUUD\ RI KLJK FDSDFLW\ 9HORFLW\ PV (QHUJ\
PDJD]LQHV ZHUH GHYHORSHG $ORQJ ZLWK WKH VWDQGDUG  :HLJKW (PSW\ NJ 52) 66 
URXQGPDJD]LQHVWKH6RYLHWVSUHIHUUHGWKH\DOVRSURGXFHG /RDGHG NJ 0% 
 DQG  URXQG ER[ PDJD]LQHV DQG  DQG  URXQG /HQJWK PPPPIRUIROGHG53.6 %XUVW 
GUXPV 5DQJH (IIHFW P $XWR 
$V ZLWK HYHU\ RWKHU $. VHULHV ZHDSRQ WKHUH LV 0D[ P &\FOLF 
DQ53.6$QG\HV\RXJXHVVHGLWLWZDVPDGHIRUWKHLU /RDGHGZLWKDURXQGGUXPPDJD]LQHLQFUHDVHVWKH
1RWHV
DLUERUQHIRUFHVDQGVXUSULVH,WKDVDIROGLQJVWRFN8QOLNH ZHLJKWWRNJ
WKHRWKHU$.6W\SHZHDSRQVWKH53.6ZDVUHLQIRUFHG
LQLWVGHVLJQDOORZLQJLWWREHDLUGURSSHGDVFDUJRZKLFKDSSDUHQWO\GDPDJHGSUHYLRXVDLUERUQHZHDSRQV\VWHPV:KLOHWKH53.6ZDVDYHU\
UDUHZHDSRQLQWKH6RYLHWDUVHQDOVWKH53.6ZDVIDLUO\ FRPPRQ7KHUHLVDWKLUGYHUVLRQRIWKHZHDSRQWKH53.1ZKLFKSHUPDQHQWO\
PRXQWVDQ,5QLJKWVFRSH2ULJLQDOO\WKH53.ZDVPDQXIDFWXUHGZLWKZRRGHQKDQGJXDUGDQGIL[HGZRRGHQEXWWVWRFNWKH53.6EHLQJ
WKH VDPHH[FHSW D IROGLQJ PHWDOVWRFN 0RUHUHFHQWO\ WKHGHVLJQZDVPRGLILHG ILWWLQJDOOQHZO\PDQXIDFWXUHG53.
VZLWKSODVWLF JULSV
KDQGJXDUGDQGDIROGLQJSRO\PHUVWRFN
:KHQLVVXHG WKH53.PRVWRIWHQFRPHVZLWKURXQG$.PDJD]LQHVDQGPRUHUDUHO\WKH URXQG53.PDJD]LQHV
WKDWZHUHPDGHIRULW8QIRUWXQDWHO\WKHPRVWVRXJKWDIWHUPDJD]LQHVDUHDOVRWKHUDUHVWWKHURXQGGUXPVPDGHIRUWKH53.$ORQJ
ZLWKWKHLQFUHDVHLQEDUUHOOHQJWKWKH53.UDWKHUWKDQWKH$.PX]]OHEUDNHKDVDFXWGRZQIODVKVXSSUHVVRURQWKHHQGRIWKH
EDUUHO $V ZLWK WKH 53. WKH 53. VKDUHV D VLJQLILFDQW QXPEHU RI SDUWV ZLWK WKH $. DQG DUH WKXV LQWHUFKDQJDEOH 7KH 53. DOVR
VXIIHUVPDQ\RIWKHVDPHSUREOHPVRIWKHHDUOLHU53.
CIQ

&\EHUWKULOOHU
(IIHFW :HLJKW :HLJKW
5DWHRI 5DQJH (PSW\ /RDGHG
:HDSRQ 7\SH $&& &RQ $Y &DOLEHU '0 $PPR )LUH 5HO PHWHUV NJ NJ &RVW
53. $5  7 0 %ORF   >66@ 95    
53.6 $5  7 0 %ORF   >$@>&@ 95    
6SHFLDO5XOHV

'6\VWHP
'DPDJH 5DQJH 5DWHRI 3XUFKDVH
:HDSRQ 'DPDJH &ULWLFDO 7\SH ,QFUHPHQW )LUH 0DJ 6L]H :HLJKW '& 5HVWULFWLRQ
53. G  EDOOLVWLF  6$  /UJ OEV  0LO
53.6 G  EDOOLVWLF  6$  /UJ OEV  0LO
6SHFLDO5XOHV

)8'*(
:HDSRQ 6KRWV 5DWHRI)LUH 5DQJH $FF\ 'PJ &RVW 1RWHV
53.  6$$& 0HGLRFUH 0HGLRFUH  
53.6  6$$& 0HGLRFUH 0HGLRFUH  
6SHFLDO5XOHV

$FWLRQ
675 0D[
:HDSRQ 'PJ 7\SH $FF 5PRG 5R) $PP :W &RVW 1RWHV
0LQ 5QJ
53. G 3/        
53.6 G 3/        
6SHFLDO5XOHV
 B- %2KJ 212R
7KH 6$ LV WKH SULPDU\ ORQJDUP RI WKH
:HDSRQ 6$/$/$
%ULWLVK PLOLWDU\ XVHG E\ WKH 5R\DO 0DULQHV DQG %ULWLVK
0DQXIDFWXUHU (QILHOG <HDU 
$UP\'HYHORSPHQWRQWKHULIOHEHJDQLQWKHODWH
V
DV WKH %ULWLVK PLOLWDU\ EHJDQ VHHNLQJ D UHSODFHPHQW IRU 1DWLRQ *UHDW%ULWDLQ
LWV PP / 6/5 D EULWLVKPDGH YHUVLRQ RI WKH )1 &DOLEHU [PP 0DJV 
)$/ %\ WKH HDUO\ 
V WKH 6$ DEEUHYLDWHG IURP $FFXUDF\ *URXS FP 02$
6PDOO $UPV IRU WKH 
V KDG UHVXOWHG LQ WZR ZHDSRQ .LOO
FRQFHSWVWKH6$,:,QIDQWU\:HDSRQDQGWKH6$ 9HORFLW\ PV (QHUJ\
/6: /LJKW 6XSSRUW :HDSRQ 2ULJLQDOO\ WKH ULIOH ZDV :HLJKW (PSW\ NJ 52) 66 
GHVLJQHGWRILUHDSURSULHWDU\PPURXQGSURGXFHGE\ /RDGHG NJ 0% 
(QILHOG +RZHYHU ZLWK WKH FKRLFH RI WKH %HOJLDQGHVLJQ /HQJWK PP %XUVW 
66PPURXQGDV1$72
VVWDQGDUGVPDOOFDOLEHU 5DQJH (IIHFW P $XWR 
PXQLWLRQ GHVLJQHUV ZHUH IRUFHG WR UHGHVLJQ WKH 6$ 0D[ &\FOLF 
DURXQG WKDW EXOOHW DQG WKLV SDUWLFXODU FKDQJH ZDV RQO\ &KRLFHRIVLJKWV686$7[LOOXPLQDWHG VFRSHNJRU
1RWHV
WKHWLSRIWKHLFHEHUJDVIDUDVSUREOHPVZLWKWKLVZHDSRQ LURQVLJKWVNJ
DUHFRQFHUQHG'HVLJQFRPSOHWHGWKH6$VDWLQOLPER
XQWLOLWZDVILQDOO\DGRSWHGE\WKH%ULWLVKPLOLWDU\LQ :HDSRQ 6$/6:/$
WKDQNV WR WKH GHOD\V FDXVHG E\ WKH )DONODQGV :DU RI 0DQXIDFWXUHU (QILHOG <HDU 

1DWLRQ *UHDW%ULWDLQ
7KHRULJLQDO6$ZHDSRQVGHOLYHUHGERWKWKH
&DOLEHU [PP 0DJV 
/DQG /PRGHOVWKHUHZHUHVRPHVHULRXVSUREOHPV
7KH ZHDSRQ ZDV XQUHOLDEOH UHTXLULQJ FOHDQLQJ PRUH $FFXUDF\ *URXS FP 02$
IUHTXHQW WKDQ WKH RULJLQDO LVVXH RI 0
V WR WKH 86 .LOO
$UP\ 7R PDNH PDWWHUV ZRUVH WKH PDLQWHQDQFH 9HORFLW\ PV (QHUJ\ -
SURFHGXUH ZDV WURXEOHVRPH DV ZHOO OHDGLQJ WR D ORW RI :HLJKW (PSW\ NJ 52) 66 
ZHDSRQV LPSURSHUO\ DVVHPEOHG RU PDLQWDLQHG E\ WKH /RDGHG NJ 0% 
WURRSVXVLQJWKHP0DLQWHQDQFHZDVVREDGLQIDFWWKDW /HQJWK PP %XUVW 
WKHUHZHUHUHJXODUUHSRUWVRIWKHULIOHVLPSO\IDOOLQJDSDUW 5DQJH (IIHFW P $XWR 
LQWKHKDQGVRIVROGLHUVLQWKHILHOG$GGLWLRQDOO\VRPHRI 0D[ &\FOLF 
WKH /$ FRPSRQHQWV ZLWK QRW UXJJHGO\ PDGH DQG &KRLFHRIVLJKWV686$7[LOOXPLQDWHGVFRSHNJRU
1RWHV
ZHUH HDVLO\ GHQWHG LI GURSSHG 7KLV ZDV D SDUWLFXODUO\ LURQVLJKWVNJ
FULWLFDO SUREOHP ZLWK WKH ZHDSRQ
V VWHHO PDJD]LQHV DQG
WKH ULIOH
V PDJD]LQH ZHOO ,I WKH PDJD]LQH ZHOO KLW WKH :HDSRQ 6$&DUELQH
JURXQG IURP  IHHW XS WKH ULIOH ZDV PDGH XVHOHVV XQWLO 0DQXIDFWXUHU (QILHOG <HDU 
UHSDLUHG $ ILQDO SUREOHP WKDW QR DPRXQW RI XSJUDGLQJ 1DWLRQ *UHDW%ULWDLQ
FDQ FRUUHFW LV WKDW PRVW RI WKH ZHDSRQ
V ZHLJKW LV &DOLEHU [PP 0DJV 
ORFDWHG WRZDUG WKH EXWWVWRFN ZKLFK RQO\ VHUYHV WR
$FFXUDF\ *URXS 02$
LQFUHDVH PX]]OH FOLPE LQ WKH ZHDSRQ $IWHU \HDUV RI
.LOO
OLVWHQLQJ WR VROGLHUV
 FRPSODLQWV WKH GHFLVLRQ ZDV PDGH
LQWRXSJUDGHWKHULIOH 9HORFLW\ PV (QHUJ\
%HWZHHQ  VRPH  RI WKH :HLJKW (PSW\ NJ 52) 66 
 /$ ULIOHV LQ VHUYLFH ZLWK WKH %ULWLVK PLOLWDU\ /RDGHG NJ 0% 
ZHUH XSJUDGHG WR WKH /$ FRQILJXUDWLRQ ZKLFK JRW /HQJWK PP %XUVW 
UDYH UHYLHZV IURP RIILFLDOV 7KRVH RIILFLDOV ZHUH 5DQJH (IIHFW P $XWR 
LPPHGLDWHO\ SURYHQ ZURQJ DV WURRSV VHUYLQJ LQ 0D[ &\FOLF 
$IJKDQLVWDQ UHSRUWHG WKDW DOO WKH ROG SUREOHPV ZLWK WKH &KRLFHRIVLJKWV686$7[LOOXPLQDWHGVFRSHNJRU
1RWHV
ULIOH UHPDLQHG DV VHULRXV LVVXHV WR EH GHDOW ZLWK LURQVLJKWVNJ
&XUUHQWO\ WKH IDWH RI WKH / LV XS LQ WKH DLU 6HULRXV
GLVFXVVLRQV DUH XQGHUZD\ DERXW UHSODFLQJ WKH ULIOH ZLWK :HDSRQ 6$7DQN0RGHO
VRPHWKLQJ QHZ PRVW OLNHO\ WKH + . * DVVDXOW ULIOH 0DQXIDFWXUHU (QILHOG <HDU 
7KH %ULWLVK PLOLWDU\ LV DOVR VWDJLQJ DQ $GYDQFHG 5LIOH 1DWLRQ *UHDW%ULWDLQ
FRPSHWLWLRQIRUZLWKWKH%HOJLDQ)LVDIURQWUXQQHU &DOLEHU [PP 0DJV 
ZLWKDJRDORIILHOGLQJDQDGYDQFHGULIOHE\%XWWKH $FFXUDF\ *URXS 02$
/LVQ
WFRPSOHWHO\GRRPHGTXLWH\HW7KH%ULWLVK$UP\
.LOO
LV XQGHUWDNLQJ D UHWUDLQLQJ SURJUDP DV VWXGLHV KDYH
9HORFLW\ PV (QHUJ\ -
LQGLFDWHG WKDW DOO WKH SUREOHPV ZLWK WKH ULIOH UHYROYH
:HLJKW (PSW\ NJ 52) 66 
DURXQG SRRU PDLQWHQDQFH SUDFWLFHV 7KH KRSH LV WKDW LI
/RDGHG NJ 0% 
WKHWURRSVFDQILQDOO\JHWWKHPDLQWHQDQFHULJKWWKHULIOH
ZLOO KDYH QRW RQO\ KDYH LWV OLIHVSDQ H[WHQGHG WKH OLIH /HQJWK PP %XUVW 
F\FOHFRVWVSHUULIOHFDQEHUHGXFHGDVZHOO 5DQJH (IIHFW P $XWR 
7KH 6$ SRVVHVVHV D 1$72 VWDQGDUG IODVK 0D[ &\FOLF 
VXSSUHVVRU %HWZHHQ WKLV DQG WKH SRVLWLRQ JDV &KRLFHRIVLJKWV686$7[LOOXPLQDWHGVFRSHNJRU
1RWHV
UHJXODWRU YDOYH WKDW FDQ VHDO WKH JDV YHQWLQJ SRUW WKH LURQVLJKWVNJ
ULIOHFDQEHXVHGWRILUHULIOHJUHQDGHV7KLVUHJXODWRUDOVR
KDVDPLGGOHSRVLWLRQWRHQKDQFHRSHUDWLRQZKHQWKHZHDSRQLVGLUW\,WFDQEHILWWHGZLWKHLWKHUWKH686$7VFRSHRUZLWKRSHQLURQVLJKWV
FRQVLVWLQJRIDQHOHYDWHGIURQWVLJKWRQD KHDY\SRVWDQGDUHDUGLRSWLFVLJKWPRXQWHGDWRSDFDUU\LQJKDQGOH7KHRSHQVLJKWVDUHXVXDOO\ILWWHG
RQULIOHVLVVXHGWRVHFRQGOLQHWURRSV)LQDOO\WKHUHLVDSURSULHWDU\ED\RQHWIRUWKHULIOHDOVRDYHU\SRRUGHVLJQ7KHKDQGOHRIWKHED\RQHWLV
KROORZDQGVOLSVRYHUWKHULIOHEDUUHO6RZKHQWKHULIOHLVILUHGWKHED\RQHWJHWVWRRKRWWRKDQGOHVKRXOGWKHUHEHDQHHGWRUHPRYHLW
7KH /$ DPRQJ LWV YDULRXV LPSURYHPHQWV DOVR LQFOXGHV D KDPPHU GHOD\ PHFKDQLVP WKDW LPSURYHV UHOLDELOLW\ DQG VWDELOLW\ LQ
DXWRPDWLFILUHZLWKRXWUHGXFLQJWKHF\FOLFUDWH2WKHU$FKDQJHVLQFOXGHGUHFRQILJXULQJWKHFKDUJLQJKDQGOHZKLFKGHIOHFWHGVSHQWFDVLQJV
EDFNLQWRWKHDFWLRQRQWKH$WKXVFDXVLQJVWRSSDJHV7KHEROWDQGH[WUDFWRUFODZZHUHDOWHUHGWRLPSURYHFDVHH[WUDFWLRQDVZHOO7KHVH
FKDQJHVZHUHILQLVKHGRIIZLWKDVSULQJORDGHGGXVWFRYHUIRUWKHFKDUJLQJDUPVORW7KLVXSJUDGHFRYHUHGRQO\RIWKH/
ULIOHV SRVVHVVHG E\ WKH %ULWLVK JRYHUQPHQW OHDYLQJ  /$ ULIOHV LQ LQYHQWRU\ SUHVXPDEO\ WR EH VROG RII WR D IULHQGO\ JRYHUQPHQW
SURYLGHGWKHUHH[LVWVRQHWKDWKDVQ
WKHDUGRIWKHZHDSRQ
VGHILFLHQFLHV7KHXSJUDGHVZHUHGRQHDWDFRVWRIURXJKO\PLOOLRQ86'RU
B- %2KJ 212R
URXJKO\  SHU XSJUDGHG ULIOH DQG WKH SURFHVV
ZDV FRPSOHWHG LQ  MXVW LQ WLPH IRU WKH /$
ULIOHV WR VHH FRPEDW IRU WKH YHU\ ILUVW WLPH RQ WKH
GXVW\ WUDLOV RI ZDUWRUQ $IJKDQLVWDQ ZKHUH LW ZDV
GLVFRYHUHGWKHXSJUDGHIL[HGQRWKLQJ
$ORQJ ZLWK WKH /$ WKH %ULWLVK
JRYHUQPHQWDOVRSURFXUHGWKH/$/LJKW6XSSRUW
:HDSRQ 7KLV LV D 6TXDG $XWRPDWLF :HDSRQ
YDULDQW RI WKH 6$ PRGLILHG IRU VXVWDLQHG ILUH
7KH ULIOH PRXQWV D ORQJHU KHDYLHU EDUUHO DQG D
PHWDO ELSRG :KLOH WKH ULIOH GRHV HQMR\ LPSURYHG
DFFXUDF\ DOORZLQJ LW WR SODFH VLQJOH VKRWV RU VKRUW
EXUVWV RQ WDUJHWV XS WR  PHWHUV DZD\ WKH ULIOH
UHDOO\LVQ
WDQ\EHWWHUVXLWHGIRUXVHLQVXVWDLQHGILUH
WKDW WKH /$ RU /$ ,Q IDFW WKHUH LV RQH
GRFXPHQWHG FDVH RI KRZ XQVXLWDEOH WKH / LV IRU
VXVWDLQHG ILUH $W WKH HQG RI WDUJHW SUDFWLFH D
JXQQHU\ UDQJH RIILFHU FROOHFWHG DOO XQILUHG
DPPXQLWLRQ WRWDOLQJ VRPH  WR  PDJD]LQHV RI
DPPXQLWLRQ WKH SURFHHGHG WR ILUH DOO WKH
DPPXQLWLRQWKURXJKWKHZHDSRQVWRSSLQJRQO\ORQJ
HQRXJK WR VZDS PDJD]LQHV DQG UHFKDUJH WKH
ZHDSRQ WR FRQWLQXH ILULQJ $IWHU ILULQJ WKH
DPPXQLWLRQ WKH JXQ HIIHFWLYHO\ ZHOGHG LWVHOI VROLG
DVLWZDVOHIWWRFRROGRZQZKLFKGHVWUR\HGWKHULIOH
7KH RQO\ JRRG SRLQW LV WKDW ZKLOH WKH ZHDSRQ ZDV
KRW HQRXJK WR IXVH LWVPRYLQJ PHWDO SDUWV WRJHWKHU
RQFHOHIWDWUHVWIRUPRUHWKDQVHFRQGVWKHULIOH
GHVLJQ GLGQ
W KHDW WR WKH SRLQW RI H[SHULHQFLQJ D
FRRNRII7KHODFNRIKLJKFDSDFLW\PDJD]LQHVWKDW
FDQ EH XVHG ZLWK D EXOOSXS ULIOH DOVR UHQGHUV WKH
ZHDSRQ LQFDSDEOH RI SURGXFLQJ VXVWDLQHG ILUH 7KH
/$ GLGQ
W VHUYH ORQJ DV WKH %ULWLVK 6$: $IWHU
'HVHUW 6WRUP WKH 0LQLVWU\ RI 'HIHQVH EHJDQ
UHSODFLQJLWZLWKWKH)1+HUVWDO0LQLPL
7KHWKLUGPRVWFRPPRQYDULDQWRIWKHULIOH
LV WKH /$ XVHG LQ EDVLF WUDLQLQJ WR SURYLGH ULIOH
WUDLQLQJIRUFDGHWVDQGUHFUXLWV7KH/$KDVWKH
HQWLUH LQQHU ZRUNLQJV RI WKH DVVDXOW ULIOH UHSODFHG
ZLWK D FRPSOHWHO\ PDQXDOO\ RSHUDWHG DVVHPEO\
FRPSOHWH ZLWK DQ HQODUJHG UHFKDUJLQJ KDQGOH WKDW
WKHVKRRWHUPXVWF\FOHLQRUGHUWRH[WUDFWWKHVSHQW
FDVLQJ DQG UHORDG WKH ULIOH IURP WKH PDJD]LQH
7\SLFDOO\WKH/$ LVPRXQWHGZLWK WKHRSHQLURQ
VLJKWVUDWKHUWKDQWKH686$7VLJKW,WFDQILUHHLWKHU
PP66URXQGVRUZLWKDQDGDSWHUILUHIDU
OHVV H[SHQVLYH  /5 URXQGV 7KHUH LV DOVR D
GXPP\ YHUVLRQ RI WKH ULIOH WKH /$ 'ULOO
3UDFWLFH &DGHW ZHDSRQ ,W FDQ EH ILWWHG ZLWK D
ORDGHGPDJD]LQHEXWFDQQRWFKDPEHUDURXQG
$VLGH IURP WKHVH SULPDU\ YHUVLRQV RI WKH
6$ WKHUH ZHUH WZR RWKHU ULIOHV SURGXFHG LQ
OLPLWHG TXDQWLWLHV )LUVW LV WKH / &DUELQH ,W LV DQ
/$IUDPHILWWHGZLWKDPPEDUUHOUHGXFHGE\
 PP DQG WKH /$
V IRUHJULS /HVV WKDQ  RI
WKHVH ULIOHV ZHUH PDQXIDFWXUHG IRU D SKDQWRP
FRQWUDFWIRU DQXQVSHFLILHG VRXWKHDVW DVLDQ FRXQWU\
UXPRUVVD\7KDLODQG
7KH ILQDO ULIOH ZDV WKH 6$ 0LQL RUWKH
6$ 7DQN 0RGHO GHVLJQHG DV DQ XOWUDVKRUW
FDUELQH IRU XVH DV D 3': E\ YHKLFOH FUHZV 7KH
EDUUHO HQGV EDUHO\ LQFKHV DKHDG RI WKH WULJJHU
JXDUGDQGWKHZHDSRQUHTXLUHVDVSHFLDOFODPSRQ
H[WHQVLRQ WKDW FODPSV WR WKH XSSHU IUDPH RYHU WKH
WULJJHU DQG H[WHQGV XQGHU WKH EDUUHO WR VXSSRUW D
YHUWLFDOJULS
7KHUH ZDV DOVR D FDUELQH YHUVLRQ RI WKH
ULIOHSURGXFHGLQYHU\OLPLWHGTXDQWLWLHVSUHVXPDEO\
LW ZDV SODQQHG WR EH D ZHDSRQ IRU VHFRQG OLQH
WURRSV RU YHKLFOH FUHZV /DVWO\ WKHUH LV WKH /$ D PDQXDOO\ RSHUDWHG VHPLDXWRPDWLF YHUVLRQ RI WKH ULIOH XVHG IRU EDVLF WUDLQLQJ RI QHZ
UHFUXLWV
([FOXGLQJWKH/$RIWKHSDUWVRIWKHYDULRXV6$ZHDSRQVDUHLQWHUFKDQJHDEOH
 B- %2KJ 212R
&\EHUWKULOOHU
(IIHFW :HLJKW :HLJKW
5DWHRI 5DQJH (PSW\ /RDGHG
:HDSRQ 7\SH $&& &RQ $Y &DOLEHU '0 $PPR )LUH 5HO PHWHUV NJ NJ &RVW
/$ $5  7 0 1   85    
/$ $5  7 0 1   67    
/&DUELQH $5  7 02 1   >66@  85    
/7DQN0RGHO $5  - 02 1   >$%@>&@ 85    
/$/LJKW6XSSRUW
$5  1 0 1   67    
:HDSRQ
/$ 5,)  7 0 1   >66@ 95    
6SHFLDO5XOHV

'6\VWHP
'DPDJH 5DQJH 5DWHRI 3XUFKDVH
:HDSRQ 'DPDJH &ULWLFDO 7\SH ,QFUHPHQW )LUH 0DJ 6L]H :HLJKW '& 5HVWULFWLRQ
/$ G  EDOOLVWLF  6$  0HG OE  0LO
/$ G  EDOOLVWLF  6$  0HG OE  0LO
/&DUELQH G  EDOOLVWLF  6$  0HG OE  0LO
/7DQN0RGHO G  EDOOLVWLF  6$  6P OE  0LO
/$/LJKW6XSSRUW:HDSRQ G  EDOOLVWLF  6$  /UJ OE  0LO
/$ G  EDOOLVWLF  6  0HG OE  5HV
6SHFLDO5XOHV

)8'*(
:HDSRQ 6KRWV 5DWHRI)LUH 5DQJH $FF\ 'PJ &RVW 1RWHV
/$  6$$& *RRG *RRG  
/$  6$$& *RRG *RRG  
/&DUELQH  6$$& 0HGLRFUH )DLU  
/7DQN0RGHO  6$$& 3RRU 0HGLRFUH  
/$/LJKW6XSSRUW:HDSRQ  6$$& *UHDW *RRG  
/$  6$$& )DLU )DLU  
6SHFLDO5XOHV

$FWLRQ
675 0D[
:HDSRQ 'PJ 7\SH $FF 5PRG 5R) $PP :W &RVW 1RWHV
0LQ 5QJ
/$ G 3/        
/$ G 3/        
/&DUELQH G 3/        
/7DQN0RGHO G 3/        
/$/LJKW6XSSRUW:HDSRQ G 3/        
/$ G 3/        
6SHFLDO5XOHV
 K[JA
7KH60$:LVDVKRXOGHUILUHGPPSRUWDEOH
:HDSRQ 0%XQNHU'HIHDWLQJ0XQLWLRQ
ZHDSRQ V\VWHP FDSDEOH RI ILULQJ VHYHUDO GLIIHUHQW NLQGV
0DQXIDFWXUHU 7DOOH\'HIHQVH6\VWHPV <HDU 
RI URFNHWV 7KH ODXQFKHUFRQVLVWV RI D ILEHUJODVV ODXQFK
WXEH D PP VSRWWLQJ ULIOH DQ HOHFWURPHFKDQLFDO ILULQJ 1DWLRQ 8QLWHG6WDWHV
PHFKDQLVP RSHQ EDWWOH VLJKWV DQG PRXQWLQJ &DOLEHU PPURFNHW 0DJV VLQJOHVKRW
SDUDSKHUQDOLDIRUWKH0.RSWLFDODQG$1396QLJKW $FFXUDF\ *URXS 02$
VLJKWV,WILUHVWKH+LJK([SORVLYH'XDO 3XUSRVH+('3 .LOO 3HQ PP
URFNHW HIIHFWLYH DJDLQVW EXQNHUV PDVRQU\ FRQFUHWH 9HORFLW\ PV (QHUJ\
ZDOOV DQG OLJKW DUPRU 7KH RWKHU URXQG WKH +LJK :HLJKW (PSW\ 52) 66 
([SORVLYH$QWL$UPRU+($$URFNHWLVHIIHFWLYHDJDLQVW /RDGHG NJ 0% 
PRVW PRGHUQ DUPRUHG YHKLFOHV SURYLGHG WKRVH YHKLFOHV /HQJWK PP %XUVW 
DUH QRW FRYHUHG ZLWK DUPRU HQKDQFHPHQWV OLNH UHDFWLYH 5DQJH (IIHFWLYH P $XWR 
DUPRU SODWLQJ $ WKLUG URXQG LV WKH )ROORZ 7KURXJK 0D[ P &\FOLF 
*UHQDGH )7* ZKLFK XWLOL]HG D WDQGHP ZDUKHDG 1RWHV
FRQFHSW IRU EUHDFKLQJ ZDOOV $ VKDSHG FKDUJHG IURQW
ZDUKHDG DOORZV IRU SHQHWUDWLQJ D EULFN FRQFUHWH RU RWKHU KDUGHQHG ZDOO DQG D IXOO FDOLEHU JUHQDGH IROORZV WKDW EODVW WKURXJK WKH ZDOO
GHWRQDWLQJLQVLGHWKHVWUXFWXUH'XULQJ2SHUDWLRQ,UDTL)UHHGRPWKH860DULQHVEHJDQWHVWLQJDQHZZDUKHDGIRUWKH60$:DWKHUPREDULF
URFNHW 7KLV QHZ URFNHW ZDV UDWKHU KLW RU PLVV DFFRUGLQJ WR WKH 0DULQHV DIWHUDFWLRQ UHSRUWV 7ZR URXQGV ZHUH ILUHG RQ VLPLODU RQHVWRU\
PDVRQU\W\SH VWUXFWXUHV :KLOH RQH SHQHWUDWHG WKH VWUXFWXUH DQG GHWRQDWHG FDXVLQJ WKH VWUXFWXUH WR SUDFWLFDOO\ GLVLQWHJUDWH ZKLOH LQ WKH
VHFRQGLQVWDQFHDQRWKHUXQLWDWWHPSWHGWREUHDFKDZDOOZLWKWKHURFNHWDIWHUPRUHWUDGLWLRQDOHIIRUWVIDLOHGLQEUHDFKLQJWKHGRRU7KHURXQG
ERXQFHGRIIWKHZDOODQGH[SORGHGKDUPOHVVO\RXWVLGHWKHVWUXFWXUH7KHVHZDUKHDGVZHUHGHYHORSHGRQDYHU\WLJKWVFKHGXOHKDYLQJJRQH
IURPSDSHUWRSURGXFWLQDGHYHORSPHQWF\FOHRIOHVVWKDQD\HDU
,QWURGXFHGLQWKH60$:ODXQFKHULVEDVHGRQWKH,VUDHOL%DQWLWDQNV\VWHP,WLVDZHDSRQH[FOXVLYHWRWKH860DULQHV
DQGWKH\KDYH RIWKHVHODXQFKHUVLQLQYHQWRU\7KHZHDSRQ KDVGLVSOD\HGD QXPEHURIGHILFLHQFLHV7KLV LQFOXGHVERUH GDPDJHWKDW
UHTXLUHV WKH ZHDSRQ WR EH UHVOHHYHG ZLWK WKH JHO FRDWLQJ XVHG WR SURWHFW WKHP WUDLQLQJ GHILFLHQFLHV WKDW UHVXOW LQ RSHUDWRU HUURU UHTXLULQJ
UHZULWLQJ RI WKH WUDLQLQJ PDQXDOV IRXOLQJ RI WKH WULJJHU DVVHPEO\ E\ HQYLURQPHQWDO GHEULV UHTXLULQJ D FOHDQLQJ NLW DQG UHGHVLJQHG WULJJHU
FRPSRQHQWV DQG ORRVH VSRWWLQJ ULIOH PRXQWV WKDW UHVXOW LQ D ORVV RI ERUHVLJKWLQJ UHTXLULQJ D UHSODFHPHQW PRXQWLQJ EUDFNHW NLW 2QH ILQDO
SUREOHPH[LVWVIRUWKHZHDSRQDQGWKDWLV LWVLQHIIHFWLYHQHVVDJDLQVWPRYLQJWDUJHWV7KHZHDSRQILUHVDQXQJXLGHGURFNHWDIWHUDOO7KLVLV
EHLQJFRUUHFWHGE\WKHGHYHORSPHQWRIDQHZRSWLFDOVLJKWVSHFLILFWRWKHZHDSRQZKLFKZLOODOORZLWWRPRUHHIIHFWLYHO\DLPDWPRYLQJWDUJHWV
7KH PDQXIDFWXUHU RI WKH V\VWHP 7DOOH\ 'HIHQVH 6\VWHPV KDV UHFHQWO\ LQWURGXFHG WKH 60$:/($3 /RZVLJQDWXUH (QFDVHG
$VVDXOW3URMHFWLOHV\VWHP 7KLVLVD QHZ SURSXOVLRQV\VWHPGHVLJQHG WRUHGXFHWKH EDFNEODVWDQGRYHUSUHVVXUHJHQHUDWHGE\WKHZHDSRQ
DOORZLQJPDULQHVWRVDIHO\ILUHWKHZHDSRQLQFRQILQHGDUHDVDQG0287HQYLURQPHQWV
K[JA
&\EHUWKULOOHU
(IIHFW :HLJKW :HLJKW
5DWHRI 5DQJH (PSW\ /RDGHG
:HDSRQ 7\SH $&& &RQ $Y &DOLEHU '0 $PPR )LUH 5HO PHWHUV NJ NJ &RVW
60$: +9<  1 02 PP    95    
3(1
+('35RFNHW     '    95    
P
3(1
+($$5RFNHW        95    
'P
3(1
)7*5RFNHW        95    
'P
3(1
7KHUPREDULF5RFNHW     G    95    
P
6SHFLDO5XOHV

'6\VWHP
'DPDJH 5DQJH 5DWHRI 3XUFKDVH
:HDSRQ 'DPDJH &ULWLFDO 7\SH ,QFUHPHQW )LUH 0DJ 6L]H :HLJKW '& 5HVWULFWLRQ
60$:    66  /UJ OE  0LO
3(1
+('35RFNHW G  FRQFXVVLRQ    PHG OE  0LO


3(1
+($$5RFNHW  ILUH    PHG OE  0LO
G

3(1
)7*5RFNHW  ILUH    PHG OE  0LO
G¶
3(1
7KHUPREDULF 5RFNHW G  ILUH    PHG OE  0LO
¶
6SHFLDO5XOHV

)8'*(
:HDSRQ 6KRWV 5DWHRI)LUH 5DQJH $FF\ 'PJ &RVW 1RWHV
60$:  66 *RRG )DLU  
+('35RFNHW       3RRU3HQHWUDWLRQ
+($$5RFNHW       )DLU3HQHWUDWLRQ
)7*5RFNHW       7HUULEOH3HQHWUDWLRQ
7KHUPREDULF5RFNHW       3RRU3HQHWUDWLRQ
6SHFLDO5XOHV

$FWLRQ
675 0D[
:HDSRQ 'PJ 7\SH $FF 5PRG 5R) $PP :W &RVW 1RWHV
0LQ 5QJ
60$:          
G
+('35RFNHW 3/        

G
+($$5RFNHW 3/        

G
)7*5RFNHW 3/        

G
7KHUPREDULF5RFNHW %/        

6SHFLDO5XOHV
 KJ
2N%212Q[2K%[
7KH .0 6WUHOD0 GHVLJQDWHG WKH 6$
:HDSRQ .6WUHOD6$$*UDLO
*UDLO E\ 1$72 LV D PDQSRUWDEOH VKRXOGHUILUHG ORZ
0DQXIDFWXUHU <HDU 
DOWLWXGH 6XUIDFHWR$LU 0LVVLOH VLPLODU WR WKH 5HGH\H
6$0 ILHOGHG E\ WKH 86 $UP\ DQG 0DULQHV GXULQJ WKH 1DWLRQ 5XVVLD
9LHWQDP :DU 7KH PLVVLOH KDV DQ +( ZDUKHDG DQG &DOLEHU PPPLVVLOH 0DJV 
SDVVLYH LQIUDUHG KRPLQJ JXLGDQFH 7KH V\VWHP LV $FFXUDF\ *URXS 02$
FRPSRVHG RI WKH PLVVLOH LQ ODXQFK WXEH D UHORDGDEOH .LOO 
JULSVWRFNDQGD WKHUPDOVHQVRUEDWWHU\7KH6$VHULHV 9HORFLW\ PV (QHUJ\
LV D ILUVW JHQHUDWLRQ 6$0 0$13$'6 6XUIDFHWR$LU :HLJKW (PSW\ NJ 52) 66 
0LVVLOH EDVHG 0$1 3RUWDEOH $LU 'HIHQVH 6\VWHP /RDGHG NJ 0% 
GHYHORSHG EHWZHHQ  DQG  6LQFH HQWHULQJ /HQJWK PP %XUVW 
VHUYLFHLQRYHU6WUHODPLVVLOHVKDYHEHHQ 5DQJH 0LQ [P $XWR 
PDQXIDFWXUHGE\WKH5XVVLDQDQG6RYLHWUHJLPHVDORQH 0D[ [NP &\FOLF 
7KH V\VWHP FDQ EH ILWWHG ZLWK DQ ,)) VHQVRUFRQQHFWHG 1RWHV &DQQRWWUDFNDLUFUDIWPRYLQJIDVWHUWKDWPV
WR WKH RSHUDWRU
V KHOPHW LQ RUGHU WR SUHYHQW EDWWOHILHOG
IUDWULFLGH $GGLWLRQDOO\ D SDLU RI SULPLWLYH 5) DQWHQQD :HDSRQ .06WUHOD06$%*UDLO
DWWDFKHGWRWKHXQWLSLFNLQJXSDLUFUDIWUDGDUVLJQDOVDQG 0DQXIDFWXUHU <HDU 
JHQHUDWLQJ D WRQH VLJQDOOLQJ WKH DSSURDFK RI DQ DLUFUDIW
1DWLRQ 5XVVLD
DV ZHOO DV GHWHUPLQLQJ WKH URXJK GLUHFWLRQ RI DSSURDFK
&DOLEHU PP0LVVLOH 0DJV 
$OWKRXJKWKH 6$VHULHVLVOLPLWHGLQ UDQJH VSHHGDQG
DOWLWXGH LW GRHV IRUFH HQHP\ SLORWV WR IO\ DERYH WKH $FFXUDF\ *URXS 02$
PLQLPXP UDGDU FHLOLQJ RI WKH PRUH SRWHQW UHJLPHQWDO RU .LOO 
GLYLVLRQDODLUGHIHQVHV\VWHPV 9HORFLW\ PV (QHUJ\
7KH6$VHULHVLVDWDLOFKDVHPLVVLOHV\VWHP :HLJKW (PSW\ NJ 52) 66 
ZLWK LWV HIIHFWLYHQHVV GHSHQGLQJ XSRQ LWV DELOLW\ WR ORFN /RDGHG NJ 0% 
RQWR D KHDW VRXUFH IURP WKH WDUJHW XVXDOO\ WKH H[KDXVW /HQJWK PP %XUVW 
SOXPH RI D ORZ IO\LQJ IL[HG ZLQJ RU URWDU\ ZLQJ DLUFUDIW 5DQJH (IIHFW [P $XWR 
%HLQJ D WDLOFKDVH KHDWVHHNLQJ V\VWHP LW FDQ RQO\ EH 0D[ [NP &\FOLF 
ILUHGRQDQRXWJRLQJDLUFUDIWPHDQLQJLWFDQRQO\EHILUHG 1RWHV &DQQRWWUDFNDLUFUDIWPRYLQJIDVWHUWKDQPV
LQ D UHWDOLDWRU\ DWWDFN DIWHU WKH HQHP\ DLUFUDIW KDV
FRPSOHWHG LWV FORVH VXSSRUW VRUWLH +RZHYHU WKH 6$ :HDSRQ .06WUHOD09HUVLRQ
KDVDVXUSULVLQJO\ZLGHDQJOHRIDFTXLVLWLRQDOORZLQJWKH 0DQXIDFWXUHU (QILHOG <HDU 
RSHUDWRU VHYHUDO H[WUD FULWLFDO VHFRQGV WR DFTXLUH WKH 1DWLRQ *UHDW%ULWDLQ
WDUJHWEHIRUHLWIOLHVRXWRIUDQJHWKHUHE\LQFUHDVLQJWKH &DOLEHU [PP 0DJV 
PLVVLOH
V NLOO UDWH 7KH PLVVLOHV DUH LPSDFW IXVHG
$FFXUDF\ *URXS  02$
UHTXLULQJ WKHP WR DFWXDOO\ VWULNH WKH DLUFUDIW EHIRUH WKH\
.LOO
GHWRQDWH
7KH6$LVQ
WDPLVVLOHSDUWLFXODUO\VXFFHVVIXO 9HORFLW\ PV (QHUJ\
LQLWVWDVN'XULQJWKH9LHWQDP:DUWKH\KDGDNLOO :HLJKW (PSW\ NJ 52) 66 
SUREDELOLW\ DJDLQVW KHOLFRSWHUV 7KLV UDWH GURSSHG /RDGHG NJ 0% 
VLJQLILFDQWO\ DIWHU 86 FKRSSHUV EHJDQ RXWILWWLQJ ZLWK /HQJWK PP %XUVW 
IODUHVIRUFRXQWHUPHDVXUHV'XULQJWKH$UDE,VUDHOL 5DQJH (IIHFW [P $XWR 
:DU RYHU  6$ PLVVLOHV ZHUH ILUHG DW ,VUDHOL 0D[ [NP &\FOLF 
DLUFUDIW EULQJLQJ GRZQ RQO\ WZR DQG GDPDJLQJ IRXU 1RWHV &DQQRWWUDFNDLUFUDIWPRYLQJIDVWHUWKDQPV
RWKHUV SURGXFLQJ D NLOO SUREDELOLW\ DJDLQVW KLJK DOWLWXGH
DQG KLJK VSHHG DLUFUDIW RI OHVV WKDQ  DQG D KLW
SUREDELOLW\ RI RQO\ VOLJKWO\ RYHU  6$V KDYH EHHQ XVHG LQ DWWHPSWV WR VKRRW GRZQ DLUOLQHUV 7ZR 6$V ZHUH ILUHG RQ DQ ,VUDHOL DLUOLQHU
ODXQFKLQJ IURP .HQ\D LQ 1RYHPEHU  DURXQG WKHVDPH WLPH DQ ,VUDHOL KRWHO LQ WKH VDPH DUHD ZDV GHVWUR\HG LQ D WHUURULVW DWWDFN 7KH
DWWDFN RFFXUHG DERXW  NLORPHWHUV  PLOHV IURP WKH DLUSRUW DQG FDXVHG PLQRU GDPDJH WR WKH DLUFUDIW ZKLFK FRQWLQXHG LWV IOLJKW
XQLQWHUUXSWHG DOO WKH ZD\ WR ,VUDHO XQGHU ILJKWHU HVFRUW
:KLOHFODLPVDUHWKDWWKHDLUOLQHUZDVPLUDFXORXVO\VDYHG
E\ WKH IDFW WKDW WKH PLVVLOHV ZHUH SUREDEO\ IURP D
GHIHFWLYH SURGXFWLRQ UXQ PDQ\ EHOLHYH WKH FODLPV DUH
SDWHQWO\ IDOVH $W  NLORPHWHUV WKH DLUOLQHU ZDV LQ WKH
XSSHU UHDFKHV RI WKH PLVVLOH
V OLPLWV DQG IO\LQJ QHDU WKH
PD[LPXP WUDFNDEOH DLUVSHHG IRU WKH ZHDSRQ DV ZHOO
,QVWHDG LW LV QRZ EHOLHYHG WKDW WKRVH WZR 6$
V
SHUIRUPHG ZLWK HTXDO FDSDELOLW\ DV DOO RI WKH RWKHU
WKRXVDQGVRI6$
VILUHGLQWKHODVW\HDUV7KHDWWDFN
VLPSO\ RFFXUUHG DW D SRVLWLRQ WKDW UHGXFHG WKH PLVVLOH
V
NLOODQGKLWSUREDELOLWLHVDQGWKHDLUOLQHUZDVVLPSO\HLWKHU
DPDVVWRRODUJHIRUWKHPLVVLOHWRVLJQLILFDQWO\GDPDJHRU
VXIILFLHQWO\QHZWKDWWKH PLVVLOHGLGQ
WDGHTXDWHO\GDPDJH
WKHPDWHULDOVLWZDVPDGHIURP1RYHUPEHUVDZWKH
ILUVW UHFRUGHG 6$0 DWWDFN RQ D FLYLOLDQ DLUOLQHU ZKHQ D
6N\YDQ DLUFUDIW ZDV VKRW GRZQ RYHU $QJROD $QRWKHU
QRWDEOH LQFLGHQW ZDV RQ 2FWREHU   ZKHQ D
%RHLQJZDVVKRWGRZQRYHU&RQJR2Q$SULO
WKH DLUOLQHU FDUU\LQJ WKH 3UHVLGHQW RI 5ZDQGD ZDV VKRW
GRZQ NLOOLQJ DOO DERDUG DQG VSDUNLQJ WKH JHQRFLGDO FLYLO
ZDU LQ WKDW QDWLRQ WKDW NLOOHG RYHU  SHRSOH LQ LWV
ILUVW\HDU6LQFHWKHUHKDYHEHHQVXFKLQFLGHQWV
XVLQJ PRVWO\ 6$ *UDLOV WKRXJK D QXPEHU KDYH EHHQ
GHWHUPLQHG WR LQYROYHG ),0 6WLQJHUV DQG 6$V 2I
KJ
2N%212Q[2K%[
WKHVHLQFLGHQWVRQO\RQHWKHPRVWUHFHQWRQHDJDLQVWWKH,VUDHOLDLUOLQHUZDVDJDLQVWDFRPPHUFLDODLUOLQHURIWKHDWWDFNVUHVXOWHG
LQWKHORVVRIWKHDLUFUDIWDQGFDXVHFDVXDOWLHV
7KHRULJLQDO6WUHODHQWHUHGVHUYLFHLQFDSDEOHRIDVODQWUDQJHRIURXJKO\NLORPHWHUVZLWKDQHQJDJHPHQWFHLOLQJRI
PHWHUVDQGD PD[LPXPDLUVSHHGRI0DFK7KHPLQLPXPUDQJHZDVPHWHUVE\PHWHUVDOWLWXGHZLWKDPD[LPXPUDQJHRINPE\
NPDOWLWXGH 7KH V\VWHPZDVDKHIW\NJIRUWKHODXQFKHUDQG NJIRUWKHPLVVLOH7KHVHHDUO\6WUHODVXVHG D OHDG VXOILGHGHWHFWRU
ZKLFKPHDQWWKDWLIILUHGZLWKLQ GHJUHHVRIWKHVXQWKHPLVVLOHZRXOGDWWHPSWWREORZWKHVXQRXWRIWKHVN\UDWKHUWKDQWKHWDUJHWDLUFUDIW
+HDWHPDQDWLQJIURPWKHJURXQGFRXOGDOVRFRQIXVHWKHZHDSRQZKHQILUHGDJDLQVWWDUJHWVIO\LQJXQGHUPHWHUV'XFNEHKLQGDKLOODQGWKH
PLVVLOHFRXOGHDVLO\HQGXSSORZLQJLQWRWKHGLUW
7KHRULJLQDOPLVVLOHZDVUHSODFHGLQVLGHDIHZPRQWKVRIWKHVHUYLFHHQWU\E\DQLPSURYHG6WUHOD0ZKLFKXVHGDERRVWHG
SURSHOODQWWRLQFUHDVHWKHUDQJHDQGVSHHG7KLVLQFUHDVHGSHUIRUPDQFHWRDUDQJHRINPZLWKDFHLOLQJRIPHWHUVDQGDVSHHGRI
0DFK7KH0DOVRLQFOXGHGDEHWWHUGHWHFWRUZKLFKKHOSHGWRDOOHYLDWHWKHSUREOHPVFDXVHGE\WKHVXQJURXQGKHDWDQGGHFR\IODUHV
7KHRSHUDWLRQDOZLQGRZZDVDPLQXPXPUDQJHRIPHWHUVE\DQ DOWLWXGHRIPHWHUVDQGDPD[LPXPUDQJHRIPHWHUVZLWKDFHLOLQJ
RIPHWHUV
VDZDGGLWLRQDOXSJUDGLQJWRWKH6WUHOD0WKRXJKWKLVVHULHVRIXSJUDGHVZDVQ
WGLIIHUHQWLDWHGIURPWKHSUHYLRXVYHUVLRQ)RU
WKLVPRGHOWKHXSJUDGHVPDLQO\LQYROYHGWKHURFNHWPRWRU7KHRSHUDWLRQDOZLQGRZZDVH[SDQGHGWRDPLQXPXPUDQJHRIPHWHUVZLWKDQ
DOWLWXGHRIPHWHUVDQGDPD[LPXPUDQJHRIPHWHUVZLWKDQDOWLWXGHRIPHWHUVOLWHUDOO\GRXEOLQJWKHNLOOZLQGRZIRUWKHPLVVLOH
,QWKH6WUHOD0EHJDQDQ XSJUDGHSURJUDPILWWLQJWKHWZRUHJLPH,5KRPLQJV\VWHPDQGQRQFRROHG,5GHWHFWRURIWKH6$
*URXVHFRPELQHGZLWKDVRSKLVWLFDWHGFRXQWHUPHDVXUHILOWHU7KLVVKRXOGUDLVHWKHNLOOSUREDELOLW\DJDLQVWXQSURWHFWHGVPDOODLUFUDIWWRDV
PXFKDVDQGDJDLQVWDLUFUDIWZLWKFRXQWHUPHDVXUHV7KHVHLPSURYHG6$%VIXQFWLRQRXWWRNPZLWKDFHLOLQJRI
PHWHUV
7KH 6WUHOD KDV EHHQ PDQXIDFWXUHG E\ D QXPEHU RI RWKHU QDWLRQV ERWK XQGHU OHJDO OLFHQVH DQG LOOHJDOO\ 7KHVH QDWLRQV LQFOXGH
<XJRVODYLD &KLQD 3DNLVWDQ DQG (J\SW ,QYDULDEO\ HYHU\ RWKHU QDWLRQ PDQXIDFWXULQJ WKHLU RZQ YHUVLRQ RI WKH 6WUHOD KDV PDGH
LPSURYHPHQWVXSRQWKHGHVLJQ
 KJ
2N%212Q[2K%[
&\EHUWKULOOHU
(IIHFW :HLJKW :HLJKW
5DWHRI 5DQJH (PSW\ /RDGHG
:HDSRQ 7\SH $&& &RQ $Y &DOLEHU '0 $PPR )LUH 5HO PHWHUV NJ NJ &RVW

6$$*UDLO6WUHOD 0,6  1 0    67    


6$%*UDLO6WUHOD0 0,6  1 0    67    


6$%*UDLO6WUHOD 0,6  1 0    67    

7KHOLVWLQJIRU$PPRLVWKHZHLJKWRIWKHPLVVLOHZDUKHDGIRUGHWHUPLQLQJWKHGDPDJH8QGHUDFFXUDF\$&&WKHZHDSRQOLVWVWZR
6SHFLDO5XOHV QXPEHUVILUVWWKHKLWSUREDELOLW\WKHRGGVWKHPLVVLOHZLOOVWULNHDVORZORZDOWLWXGHDLUFUDIWLQLWVNLOOZLQGRZDQGWKHVHFRQGLVWKHNLOO
SUREDELOLW\WKHRGGVWKDWVWUXFNDLUFUDIWZLOOEHNQRFNHGRXWRIWKHVN\E\WKHPLVVLOH
VGHWRQDWLRQ

'6\VWHP
'DPDJH 5DQJH 5DWH RI 3XUFKDVH
:HDSRQ 'DPDJH &ULWLFDO 7\SH ,QFUHPHQW )LUH 0DJ 6L]H :HLJKW '& 5HVWULFWLRQ

6$$*UDLO6WUHOD  VODVKLQJ  66  /UJ OE  0LO


6$%*UDLO6WUHOD0  VODVKLQJ  66  /UJ OE  0LO


6$%*UDLO6WUHOD  VODVKLQJ  66  /UJ OE  0LO

6LPXODWLQJDQWLDLUFUDIWPLVVLOHVXQGHU'0RGHUQLVDELWFRPSOLFDWHG'R\RXJLYHLWDWRKLWWDUJHWQXPEHUDQGDSSO\
GDPDJHDFFRUGLQJWRWKHH[SORVLYHZDUKHDG"2UGR\RXXVHWKHVWDWLVWLFDOGDWDIRUWKHPLVVLOH"6FUHZ LW,
PJRLQJZLWKWKH
VWDWLVWLFDOGDWD8QGHUGDPDJHWKHUHDUHWZRQXPEHUVSUHVHQWHG7KHVHDUHWKHKLWSUREDELOLW\DQGNLOOSUREDELOLW\WZR
VWDWLVWLFVFRPPRQWRDOO$$PLVVLOHV7KHILUVWQXPEHULQGLFDWHVWKHSHUFHQWDJHRXWRIPLVVLOHVWKDWDUHH[SHFWHGWR
VWULNHDLUFUDIWIO\LQJLQSURSHUFRQGLWLRQV7KHVHFRQGLVWKHSHUFHQWDJHRXWRIPLVVLOHVWKDWZLOONQRFNRXWRIWKHVN\DQ
6SHFLDO5XOHV
DLUFUDIWIO\LQJLQWKHSURSHUFRQGLWLRQV7\SLFDOO\WKHKLWSUREDELOLW\LVWRWLPHVWKHNLOOSUREDELOLW\)RUH[DPSOHWKH
6$%LVUDWHGDV<RXUROO',I\RXUROOXQGHUWKHPLVVLOHKLWVWKHDLUFUDIWDQGFDXVHVVRPHDPRXQWRI
GDPDJHEXWQRWHQRXJKWREULQJGRZQWKHDLUFUDIW,IWKHUROOLVXQGHUWKHPLVVLOHQRWRQO\KLWVWKHDLUFUDIWEXWFDXVHV
HQRXJKGDPDJHWREULQJLWGRZQ)RUDQWLDLUFDIWPLVVLOHVDQ\UROOXQGHUUHVXOWVLQHQRXJKNLOOGDPDJHWRFDXVHWKH
DLUFUDIWWREUHDNXSLQPLGDLU

)8'*(
:HDSRQ 6KRWV 5DWHRI)LUH 5DQJH $FF\ 'PJ &RVW 1RWHV
6$$*UDLO6WUHOD  66 6XSHUE 0HGLRFUH 3RRU 
6$%*UDLO6WUHOD0  66 6XSHUE )DLU 0HGLRFUH 
6$%*UDLO6WUHOD  66 6XSHUE )DLU 0HGLRFUH 
6SHFLDO5XOHV

$FWLRQ
675 0D[
:HDSRQ 'PJ 7\SH $FF 5PRG 5R) $PP :W &RVW 1RWHV
0LQ 5QJ
6$$*UDLO6WUHOD       U   
6$%*UDLO6WUHOD0       U   
6$%*UDLO6WUHOD      NP U   
6SHFLDO5XOHV
 KJ2N.%-212Q2K%
7KH . 6WUHOD GHVLJQDWHG WKH 6$
:HDSRQ .6WUHOD6$*UHPOLQ
*UHPOLQE\1$72LVDVHFRQGJHQHUDWLRQ6$00$13$'6
0DQXIDFWXUHU <HDU 
6XUIDFHWR$LU 0LVVLOH EDVHG 0$1 3RUWDEOH $LU 'HIHQVH
6\VWHPGHSOR\HGLQDVDUHSODFHPHQWIRUWKH6$ 1DWLRQ 5XVVLD
7KH PLVVLOH HPSOR\V DQ LPSURYHG V\VWHP IRU RYHUFRPLQJ &DOLEHU PPPLVVLOH 0DJV 
FRXQWHUPHDVXUHVDVZHOODVLQFUHDVHGUDQJHDQGDOWLWXGH $FFXUDF\ *URXS 02$
,W LV D PDVVLYH LPSURYHPHQW RYHU WKH 6WUHOD0 DV WKH .LOO 
6WUHOD LV FDSDEOH RI VWULNLQJ WDUJHWV QRW RQO\ IURP FKDVH 9HORFLW\ PV (QHUJ\
DQJOHVEXWIURPFRQIURQWDWLRQDQJOHVDVZHOO7KLVLQFUHDVH :HLJKW (PSW\ NJ 52) 66 
LQWDUJHWLQJ SHUIRUPDQFH LV GXHWRWKHQLWURJHQ JDVFRROHG /RDGHG NJ 0% 
OHDG VXOILGH VHQVRU DQG HQKDQFHG ILOWHUV RQ WKH VHHNHU /HQJWK PP %XUVW 
HOHFWURQLFV WKDW DOORZ VXFK EURDG DQJOHV RI DFTXLVLWLRQ DV 5DQJH 0LQ [P $XWR 
ZHOO DV FRPSHQVDWLQJ IRU VXFK FRXQWHUPHDVXUHV DV 0D[ [NP &\FOLF 
H[KDXVWVKURXGVDQG,5&0IODUHV 1RWHV
7KH6WUHODDOVRXWLOL]HVDZDUKHDGQHDUO\WZLFH
WKH ZHLJKW RIWKH6$PDNLQJXSIRUWKHDGGHGZHLJKWZLWK UHGXFLQJWKHZHLJKWRIWKH HOHFWURQLFVDQGXVLQJDQHZVROLGSURSHOODQWURFNHW
PRWRUDVZHOODVLPSURYLQJWKHPLVVLOH
VDHURG\QDPLFSHUIRUPDQFH7KLVJLYHVWKH6$ PLVVLOHDUDQJHRINLORPHWHUVWRDQDOWLWXGHRI
NLORPHWHUV7KH6$PLVVLOHZHLJKVDERXWDKDOINLORJUDPPRUHWKDQWKDWRIWKH6$%7KHWDUJHWLQJDQGWUDFNLQJHTXLSPHQWRIWKH6WUHOD
SURYLGHVLWDOHYHORIHIIHFWLYHQHVVDORQJWKHVDPHOLQHVDV WKHXSJUDGHVRIWKH6WUHOD07KHRSHUDWLRQDOZLQGRZRIWKH6WUHODLVD
PLQXPXPUDQJHRIPHWHUVZLWKDQDOWLWXGHRIPHWHUVZLWKDPD[LPXPUDQJHRINLORPHWHUVDWDQDOWLWXGHRINLORPHWHUV
KJ2N.%-212Q2K%
&\EHUWKULOOHU
(IIHFW :HLJKW :HLJKW
5DWHRI 5DQJH (PSW\ /RDGHG
:HDSRQ 7\SH $&& &RQ $Y &DOLEHU '0 $PPR )LUH 5HO PHWHUV NJ NJ&RVW

6$*UHPOLQ6WUHOD 0,6  1 0    67    

7KHOLVWLQJIRU$PPRLVWKHZHLJKWRIWKHPLVVLOHZDUKHDGIRU GHWHUPLQLQJWKHGDPDJH8QGHUDFFXUDF\$&&WKHZHDSRQOLVWVWZR
6SHFLDO5XOHV QXPEHUVILUVWWKHKLWSUREDELOLW\WKHRGGVWKHPLVVLOHZLOOVWULNHDVORZORZDOWLWXGHDLUFUDIWLQLWVNLOOZLQGRZDQGWKHVHFRQGLVWKHNLOO
SUREDELOLW\WKHRGGVWKDWVWUXFNDLUFUDIWZLOOEHNQRFNHGRXWRIWKHVN\E\WKHPLVVLOH
VGHWRQDWLRQ

'0RGHUQ
'DPDJH 5DQJH 5DWHRI 3XUFKDVH
:HDSRQ 'DPDJH &ULWLFDO 7\SH ,QFUHPHQW )LUH 0DJ 6L]H :HLJKW '& 5HVWULFWLRQ
6$*UHPOLQ6WUHOD
PJRLQJZLWKWKHVWDWLVWLFDOGDWD
6SHFLDO5XOHV
  VODVKLQJ  66  /UJ OE  0LO
6LPXODWLQJDQWLDLUFUDIWPLVVLOHVXQGHU'0RGHUQLVDELWFRPSOLFDWHG'R\RXJLYHLWDWRKLWWDUJHWQXPEHUDQGDSSO\GDPDJH
DFFRUGLQJWRWKHH[SORVLYHZDUKHDG"2UGR\RXXVHWKHVWDWLVWLFDOGDWDIRUWKHPLVVLOH"6FUHZLW,
8QGHUGDPDJHWKHUHDUHWZRQXPEHUVSUHVHQWHG7KHVHDUHWKHKLWSUREDELOLW\DQGNLOOSUREDELOLW\WZRVWDWLVWLFVFRPPRQWRDOO$$
PLVVLOHV7KHILUVWQXPEHULQGLFDWHVWKHSHUFHQWDJHRXWRIPLVVLOHVWKDWDUHH[SHFWHGWRVWULNHDLUFUDIWIO\LQJLQSURSHUFRQGLWLRQV
7KHVHFRQGLVWKHSHUFHQWDJHRXWRIPLVVLOHVWKDWZLOONQRFNRXWRIWKHVN\DQDLUFUDIWIO\LQJLQWKHSURSHUFRQGLWLRQV7\SLFDOO\
WKHKLWSUREDELOLW\LVWRWLPHVWKHNLOOSUREDELOLW\)RUH[DPSOHWKH6$%LVUDWHGDV<RXUROO',I\RXUROO
XQGHUWKHPLVVLOHKLWVWKHDLUFUDIWDQGFDXVHVVRPHDPRXQWRIGDPDJHEXWQRWHQRXJKWREULQJGRZQWKHDLUFUDIW,IWKHUROOLV
XQGHUWKHPLVVLOHQRWRQO\KLWVWKHDLUFUDIWEXWFDXVHVHQRXJKGDPDJHWREULQJLWGRZQ)RUDQWLDLUFDIWPLVLOHVDQ\UROOXQGHU
UHVXOWVLQHQRXJKNLOOGDPDJHWRFDXVHWKHDLUFUDIWWREUHDNXSLQPLGDLU

&\EHUWKULOOHU
(IIHFW :HLJKW :HLJKW
5DWHRI 5DQJH (PSW\ /RDGHG
:HDSRQ 7\SH $&& &RQ $Y &DOLEHU '0 $PPR )LUH 5HO PHWHUV NJ NJ &RVW

6$*UHPOLQ6WUHOD 0,6  1 0    67    

6SHFLDO5XOHV

'6\VWHP
'DPDJH 5DQJH 5DWHRI 3XUFKDVH
:HDSRQ 'DPDJH &ULWLFDO 7\SH ,QFUHPHQW )LUH 0DJ 6L]H :HLJKW '& 5HVWULFWLRQ

6$$*UDLO6WUHOD  VODVKLQJ  66  /UJ OE  0LO

6SHFLDO5XOHV

)8'*(
:HDSRQ 6KRWV 5DWHRI)LUH 5DQJH $FF\ 'PJ &RVW 1RWHV
6$$*UDLO6WUHOD  66 6XSHUE )DLW 0HGLRFUH 
6SHFLDO5XOHV

$FWLRQ
675 0D[
:HDSRQ 'PJ 7\SH $FF 5PRG 5R) $PP :W &RVW 1RWHV
0LQ 5QJ
6$$*UDLO6WUHOD       U   
6SHFLDO5XOHV
 D,$
7KH 7DEXN LV WKH ,UDTL VWDWHPDQXIDFWXUHG
:HDSRQ 7DEXN$VVDXOW5LIOH
OLFHQVHG YDULDQW RI WKH $. DVVDXOW ULIOH 7KH 7DEXN
0DQXIDFWXUHU <HDU 3
UHIOHFWV WKH RULJLQDO $. DVVDXOW ULIOH GHVLJQ UDWKHU
WKDQ WKH LPSURYHG $.0 HYLQFHG SULPDULO\ E\ WKH 1DWLRQ ,UDT
UHWHQWLRQ RI WKH ZRRGHQ EXWWVWRFN IRUHJULS DQG SLVWRO &DOLEHU [PP%ORF 0DJV 
JULS 7KHVH DUHPDGH RIOLJKWHU ZRRGVWRUHGXFH ZHLJKW $FFXUDF\ *URXS 02$
RYHU WKH RULJLQDO $. 7KH VWRFN LV DOVR ORQJHU DQG .LOO
VKDSHGGLIIHUHQWO\PDNLQJWKHULIOHPRUHFRPIRUWDEOHIRU 9HORFLW\ (QHUJ\
XVH E\ WKH DYHUDJH ,UDTL VROGLHU 7KH 7DEXN DOVR :HLJKW (PSW\ NJ 52) 66 
LQFOXGHV D QXPEHU RI DGGLWLRQDO DOWHUDWLRQV )LUVW LV WKH /RDGHG NJ 0% 
DOWHUHGIODVKVXSSUHVVRUZKLFKLVUHVKDSHGDQGUHFXWWR /HQJWK PP %XUVW 
YHQW PRUH JDV XSZDUG WR KHOS ILJKW PX]]OH FOLPE ZLWK 5DQJH (IIHFW P $XWR 
DXWRPDWLF ILUH 7KH RWKHU VLJQLILFDQW FKDQJH VKRZV WKH 0D[ P &\FOLF 
VWURQJLQIOXHQFH RIWKHPLGGOHHDVW7KH7DEXNLQFOXGHV 1RWHV
DQ DQWLDLUFUDIWVLJKW DOORZLQJ WKH ZHDSRQ WR EH ILUHG DW
DLUFUDIW7KHVLJKWLVDOVRXVHIXOIRUWDUJHWLQJWKH*3 :HDSRQ 7DEXN6KRUW$VVDXOW5LIOH
VKRXOGWKHJUHQDGHODXQFKHUEHPRXQWHGWRWKHULIOH 0DQXIDFWXUHU <HDU 3
7KH7DEXNDVVDXOWULIOHZDVDOVRPDQXIDFWXUHG
1DWLRQ ,UDT
WR WKH PP 1$72 VWDQGDUG FDOLEHU PHDQW IRU VDOHV
&DOLEHU [PP%ORF 0DJV 
RQ WKH LQWHUQDWLRQDO DUPV PDUNHW 7KH ULIOH ZDV
PDQXIDFWXUHG LQ WKLV FRQILJXUDWLRQ LQ YHU\ OLPLWHG $FFXUDF\ *URXS 02$
TXDQWLWLHV ZLWK QR NQRZQ LQWHUQDWLRQDO VDOHV 7KH .LOO
PPULIOHLVPDGHZLWKRQO\WKHZRRGHQVWRFNZKLOH 9HORFLW\ PV (QHUJ\ -
WKH PP YHUVLRQ ZDV PDGH DYDLODEOH ZLWK HLWKHU D :HLJKW (PSW\ NJ 52) 66 
ZRRGHQ IL[HG VWRFN RU D IROGLQJ PHWDO VWRFN LQ WKH /RDGHG NJ 0% 
IDVKLRQRIWKH$.DQG$.6 /HQJWK PP %XUVW 
$GGLWLRQDOO\ WKH ,UDTLV SURGXFH WKH 7DEXN 5DQJH (IIHFW P $XWR 
6KRUW $VVDXOW 5LIOH 7KLV LV D FDUELQH YHUVLRQ RI WKH 0D[ P &\FOLF 
7DEXN ZLWK D VKRUWHQHG EDUUHO FXW GRZQ IODVK 1RWHV
VXSSUHVVRU DQG IROGLQJ VWRFN UHVXOWLQJ LQ D PXFK
VPDOOHUULIOH7KHJULSVDUHUHVKDSHGDQGPDGHRISODVWLF
DV ZHOO 7KH FXW PX]]OH DOORZV WKH XVH RI 6RYLHW ULIOH JUHQDGHV $ORQJ ZLWK XVLQJ WKH URXQG PDJD]LQHV RI WKH $. LW FDQ DOVR XVH
VSHFLDOO\PDGHURXQGPDJD]LQHVDVZHOOZKLFKDUHLVVXHGIRUSDUDPLOLWDU\XVHUDWKHUWKDQPLOLWDU\XVH
D,$
&\EHUWKULOOHU
(IIHFW :HLJKW :HLJKW
5DWHRI 5DQJH (PSW\ /RDGHG
:HDSRQ 7\SH $&& &RQ $Y &DOLEHU '0 $PPR )LUH 5HO PHWHUV NJ NJ &RVW
7DEXN$VVDXOW5LIOH $5  7 0 %ORF   95    
>66@
7DEXNPP$VVDXOW5LIOH $5  7 0 1   95    
>$@>&@
7DEXN6KRUW$VVDXOW5LIOH $5  7 0 %ORF   95    
PP
*3*UHQDGH/DXQFKHU $&&  - 0    95    
/9*
92*)UDJPHQWLQJ
   0 'PU    95    
*UHQDGH
92*3³)URJ´%RXQGLQJ
   0 'PU    95    
)UDJPHQWLQJ*UHQDGH
*3$PPR92*,PSDFWGHWRQDWLRQIUDJPHQWDWLRQJUHQDGHPHWHUEODVW UDGLXVZHLJKVNJ92*3ERXQGLQJIUDJPHQWDWLRQ
6SHFLDO5XOHV )URJDLUEXUVWDWDOWLWXGHRIWRFPPHWHUEODVWUDGLXV%RWKURXQGVGHWRQDWHYLDVHOIGHVWUXFWVHFRQGVDIWHUILULQJLIWKH\DUHQ
W
WULJJHUHGRWKHUZLVH

'6\VWHP
'DPDJH 5DQJH 5DWHRI 3XUFKDVH
:HDSRQ 'DPDJH &ULWLFDO 7\SH ,QFUHPHQW )LUH 0DJ 6L]H :HLJKW '& 5HVWULFWLRQ
7DEXNPP$VVDXOW5LIOH G  EDOOLVWLF  6$  /UJ OEV  5HV
7DEXNPP$VVDXOW5LIOH G  EDOOLVWLF  6$  /UJ OEV  5HV
7DEXN6KRUW$VVDXOW5LIOH G  EDOOLVWLF  6$  /UJ OEV  5HV
*3*UHQDGH/DXQFKHU     66  6P OEV  0LO
GP
92*)UDJPHQWLQJ*UHQDGH  6ODVKLQJ    6P OE  0LO
U
92*3³)URJ´%RXQGLQJ)UDJPHQWLQJ GP
 6ODVKLQJ    6P OE  0LO
*UHQDGH U
*3 $PPR 92* ,PSDFW GHWRQDWLRQ IUDJPHQWDWLRQ JUHQDGH  PHWHU EODVW UDGLXV ZHLJKV  NJ 92*3
6SHFLDO5XOHV ERXQGLQJIUDJPHQWDWLRQ)URJDLUEXUVWDWDOWLWXGHRIWRFPPHWHUEODVWUDGLXV%RWKURXQGVGHWRQDWHYLDVHOI
GHVWUXFWVHFRQGVDIWHUILULQJLIWKH\DUHQ
WWULJJHUHGRWKHUZLVH

)8'*(
:HDSRQ 6KRWV 5DWHRI)LUH 5DQJH $FF\ 'PJ &RVW 1RWHV
7DEXNPP$VVDXOW5LIOH  6$$& 0HGLRFUH 0HGLRFUH  
7DEXNPP$VVDXOW5LIOH 
7DEXN6KRUW$VVDXOW5LIOH 
*3*UHQDGH/DXQFKHU  66 )DLU 0HGLRFUH  
92*)UDJPHQWLQJ*UHQDGH      
92*3³)URJ´%RXQGLQJ     

)UDJPHQWLQJ*UHQDGH
6SHFLDO5XOHV *3 $PPR 92* ,PSDFW GHWRQDWLRQ IUDJPHQWDWLRQ JUHQDGH  PHWHU EODVW UDGLXV ZHLJKV  NJ 92*3 ERXQGLQJ
IUDJPHQWDWLRQ)URJDLUEXUVWDWDOWLWXGHRIWRFPPHWHUEODVWUDGLXV%RWKURXQGVGHWRQDWHYLDVHOIGHVWUXFWVHFRQGV
DIWHUILULQJLIWKH\DUHQ
WWULJJHUHGRWKHUZLVH

$FWLRQ
675 0D[
:HDSRQ 'PJ 7\SH $FF 5PRG 5R) $PP :W &RVW 1RWHV
0LQ 5QJ
7DEXNPP$VVDXOW5LIOH G 3/        
7DEXNPP$VVDXOW5LIOH  
7DEXN6KRUW$VVDXOW5LIOH  
*3*UHQDGH/DXQFKHU       U   
92*)UDJPHQWLQJ*UHQDGH G 3/        
92*3³)URJ´%RXQGLQJ
G 3/        
)UDJPHQWLQJ*UHQDGH
6SHFLDO5XOHV *3 $PPR 92* ,PSDFW GHWRQDWLRQ IUDJPHQWDWLRQ JUHQDGH  PHWHU EODVW UDGLXV ZHLJKV  NJ 92*3 ERXQGLQJ
IUDJPHQWDWLRQ)URJDLUEXUVWDWDOWLWXGHRIWRFPPHWHUEODVWUDGLXV%RWKURXQGVGHWRQDWHYLDVHOIGHVWUXFWVHFRQGV
DIWHUILULQJLIWKH\DUHQ
WWULJJHUHGRWKHUZLVH
 2KMGR3[SHU0[SHU 

,<9$9;5@%IA6C"IA6C
5B8CH<9F:=B9DF=BH
%LJ%DQJ&\EHU7KULOOHU‹DQGŒ'DQD-RUJHQVHQ$OO5LJKWV5HVHUYHG
$OOZHDSRQLPDJHVWDNHQIURPIRU GLVWULEXWLRQSUHVVUHYLHZDQGSURPRWLRQDOPDWHULDOVSXEOLVKHGE\ZHDSRQVPDQXIDFWXUHUV,PDJHVDUHFRS\ULJKWWKHLUUHVSHFWLYH
PDQXIDFWXUHUV$OO5LJ KWV5HVHUYHG
2SHQ*DPH/LFHQVHY&RS\ULJKW:L]DUGVRIWKH&RDVW,QF
6\VWHP5HIHUHQFH'RFXPHQW&RS\ULJKW:L]DUGVRIWKH&RDVW,QF$XWKRUV-RQDWKDQ7ZHHW0RQWH&RRN6NLS:LOOLDPVEDVHGRQRULJLQDOPDWHULDOVE\(*DU\
*\JD[DQG'DYH $UQHVRQ

G6\VWHP
DQGWKH
G6\VWHP
ORJRDUHWUDGHPDUNVRI:L]DUGVRIWKH&RDVW,QFDVXEVLGLDU\RI+DVEUR,QFDQGDUHXVHGDFFRUGLQJWRWKHWHUPVRIWKHG
6\VWHP/LFHQVHYHUVLRQ$FRS\RIWKLV/LFHQVHFDQEHIRXQGDW ZZZZL]DUGVFRPG
G0RGHUQŒLVDWUDGHPDUNRI:L]DUGVRIWKH&RDVW,QFDVXEVLGLDU\RI+DVEUR,QFDQGLVXVHGZLWKSHUPLVVLRQ
:L]DUGVRIWKH&RDVWŠLVDUHJLVWHUHGWUDGHPDUNRI:L]DUGVRIWKH&RDVW,QFDVXEVLGLDU\ RI+DVEUR,QFDQGLVXVHGZLWKSHUPLVVLRQ

$FWLRQ6\VWHP
DQGWKH$FWLRQ6\VWHPORJRDUHWUDGHPDUNVRI*ROG5XVK*DPHVDQGDUHXVHGZLWKSHUPLVVLRQ
7KHIROORZLQJPDWHULDOVEDVHGRQ)XGJHHQWLWOHG %LJ%DQJWKH0RVWO\,OOXVWUDWHG53**XLGHWR0RGHUQ :HDSRQVDUHFUHDWHGE\PDGHDYDLODEOHE\DQG&RS\ULJKW‹
E\$OWHUQDWH5HDOLWLHV3XEOLFDWLRQVDQGDUHQRWQHFHVVDULO\HQGRUVHGLQDQ\ZD\E\6WHIIDQ2
6XOOLYDQRUDQ\SXEOLVKHURIRWKHU)XGJHPDWHULDOV1HLWKHU6WHIIDQ
2
6XOOLYDQQRUDQ\SXEOLVKHU RIRWKHU)XGJHPDWHULDOVLVLQDQ\ZD\UHVSRQVLEOHIRUWKHFRQWHQWRIWKHVHPDWHULDOVXQOHVVVSHFLILFDOO\FUHGLWHG2ULJLQDO)XGJHPDWHULDOV
&RS\ULJKW‹E\6WHIIDQ2
6XOOLYDQ$OO5LJKWV5HVHUYHG

%LJ%DQJWKH0RVWO\,OOXVWUDWHG53**XLGHWR0 RGHUQ:HDSRQVLVSURGXFHGDWOHDVWVL[WLPHVSHU\HDUSOXVDQDQQXDOFRPSLODWLRQ,WLVSURGXFHGE\$OWHUQDWH5HDOLWLHV
3XEOLFDWLRQVZLWKRIILFHVORFDWHGDW
$OWHUQDWH5HDOLWLHV3XEOLFDWLRQV
'DUWPRXWK'U

23(1*$0(/,&(16(9HUVLRQD *UDQW DQG &RQVLGHUDWLRQ,QFRQVLGHUDWLRQIRUDJUHHLQJWRXVHWKLV/LFHQVH WKH

&RQWULEXWRUV JUDQW <RX D SHUSHWXDO ZRUOGZLGH UR\DOW\ IUHH QRQH[FOXVLYH OLFHQVH
7KHIROORZLQJWH[WLVWKHSURSHUW\RI:L]DUGVRIWKH&RDVW,QFDQGLV&RS\ULJKW ZLWKWKHH[DFWWHUPVRIWKLV/LFHQVHWR8VHWKH2SHQ*DPH&RQWHQW
:L]DUGVRIWKH&RDVW,QF:L]DUGV$OO5LJKWV5HVHUYHG 5HSUHVHQWDWLRQRI$XWKRULW\W R&RQWULEXWH,I<RXDUHFRQWULEXWLQJRULJLQDOPDWHULDO
'HILQLWLRQVD&RQWULEXWRU VPHDQVWKHFRS\ULJKWDQGRUWUDGHPDUNRZQHUVZKR DV 2SHQ *DPH &RQWHQW <RX UHSUHVHQW WKDW <RXU &RQWULEXWLRQV DUH <RXU RULJLQDO
KDYHFRQWULEXWHG2SHQ*DPH&RQWHQWE'HULYDWLYH0DWHULDOPHDQVFRS\ULJKWHG FUHDWLRQ DQGRU <RX KDYH VXIILFLHQW ULJKWV WR JUDQW WKH ULJKWV FRQYH\HG E\ WKLV
PDWHULDO LQFOXGLQJ GHULYDWLYH ZRUNV DQG WUDQVODWLRQV LQFOXGLQJ LQWR RWKHU FRPSXWHU /LFHQVH
ODQJXDJHV SRWDWLRQ PRGLILFDWLRQ FRUUHF WLRQ DGGLWLRQ H[WHQVLRQ XSJUDGH 1RWLFHRI/LFHQVH&RS\ULJKW<R XPXVWXSGDWHWKH&23<5,*+7127,&(SRUWLRQ
LPSURYHPHQWFRPSLODWLRQDEULGJPHQWRURWKHUIRUPLQZKLFKDQH[LVWLQJZRUNPD\ RIWKLV/LFHQVHWRLQFOXGHWKHH[DFWWH[WRIWKH&23<5,*+7127,&(RIDQ\2SHQ
EH UHFDVW WUDQVIRUPHG RU DGDSWHG F 'LVWULEXWH PHDQV WR UHSURGXFH OLFHQVH *DPH &RQWHQW <RX DUH FRS\LQJ PRGLI\LQJ RU GLVWULEXWLQJ DQG <RX PXVW DGG WKH
UHQW OHDVH VHOO EURDGFDVW SXEOLFO\ GLVSOD\ WUDQVPLW R U RWKHUZLVH GLVWULEXWH WLWOH WKH FRS\ULJKW GDWH DQG WKH FRS\ULJKW KROGHU
V QDP H WR WKH &23<5,*+7
G2SHQ *DPH &RQWHQW PHDQV WKH JDPH PHFKDQLF DQG LQFOXGHV WKH PHWKRGV
SURFHGXUHVSURFHVVHVDQGURXWLQHVWRWKHH[WHQWVXFKFRQWHQWGRHVQRWHPERG\WKH
3URGXFW,GHQWLW\DQGLVDQHQKDQFHPHQWRYHUWKHSULRUDUWDQGDQ\DGGLWLRQDO FRQWHQW
FOHDUO\LGHQWLILHGDV2SHQ*DPH&RQWHQWE\WKH&RQWULEXWRUDQGPHDQVDQ\ZRUN
FRYHUHGE\WKLV/LFHQVHLQFOXGLQJWUDQVODWLRQVDQGGHULYDWLYHZRUNVXQGHUFRS\ULJKW
127,&(RIDQ\RULJLQDO2SHQ*DPH&RQWHQW\RX'LVWULEXWH
8VHRI3URGXFW,GHQWLW\<RXDJUHHQRWWR8VHDQ\3URGXFW,GHQWLW\LQFOXGLQJDV
DQ LQGLFDWLRQ DV WR FRPSDWLELOLW\ H[FHSW DV H[SUHVVO\ OLFHQVHG LQ DQRWKHU
LQGHSHQGHQW $JUHHPHQ W ZLWK WKH RZQHU RI HDFK HOHPHQW RI WKDW 3URGXFW ,GHQWLW\
<RX DJUHH QRW WR LQGLFDWH FRPSDWLELOLW\ RU FR DGDSWDELOLW\ ZLWK DQ\ 7UDGHPDUN RU
ODZEXWVSHFLILFDOO\H[FOXGHV3URGXFW,GHQWLW\H3URGXFW,GHQWLW\PHDQVSURGXF W
DQGSURGXFWOLQHQDPHVORJRVDQGLGHQWLI\LQJPDUNVLQFOXGLQJWUDGHGUHVVDUWLIDFWV
FUHDWXUHV FKDUDFWHUV VWRULHV VWRU\OLQHV SORWV WKHPDWLF HOHPHQWV GLDORJXH
LQFLGHQWV ODQJXDJH DUWZRUN V\PEROV GHVLJQV GHSLFWLRQV OLNHQHVVHV IRUPDWV
SRVHV FRQFHSWV WKHPHV DQG JUDSKLF SKRWRJUDSKLF DQG RWKHU YLVXDO RU DXGLR
UHSUHVHQWDWLRQV QDPHV DQG GHVFULSWLRQV RI FKDUDFWHUV VSHOOV HQFKDQWPHQWV
SHUVRQDOLWLHV WHDPV SHUVRQDV OLNHQHVVHV DQG VSHFLDO DELOLWLHV SODFHV ORFDWLRQV
HQYLURQPHQWV FUHDWXUHV H TXLSPHQW PDJLFDO RU VXSHUQDWXUDO DELOLWLHV RU HIIHFWV
ORJRV V\PEROV RU JUDSKLF GHVLJQV DQG DQ\ RWKHU WUDGHPDUN RU UHJLVWHUHG
WUDGHPDUNFOHDUO\LGHQWLILHGDV3URGXFWLGHQWLW\E\WKHRZQHURIWKH3URGXFW,GHQWLW\
5HJLVWHUHG 7UDGHPDUN LQFRQMXQFWLRQ ZLWKD ZRUN FRQWDLQLQJ 2SHQ *DPH &RQWHQW
H[FHSWDVH[SUHVVO\OLFHQVHGLQDQRWKHU LQGHSHQGHQW$JUHHPHQWZLWKWKHRZQHURI
VXFK7UDGHPDUNRU5HJLVWHUHG7UDGHPDUN7KHXVHRIDQ\3URGXFW,GHQWLW\LQ2SHQ
*DPH &RQWHQW GRHV QRW FRQVWLWXWH D FKDOOHQJH WR WKH RZQHUVKLS RI WKDW 3URGXFW
,GHQWLW\7KHRZQHURIDQ\3URGXFW,GHQWLW\XVHGLQ2SHQ *DPH&RQWHQWVKDOOUHWDLQ
DOOULJKWVWLWOHDQGLQWHUHVWLQDQGWRWKDW3URGXFW,GHQWLW\
 ,GHQWLILFDWLRQ ,I \RX GLVWULEXWH 2SHQ *DPH &RQWHQW <RX PXVW FOHDUO\ LQGLFDWH
ZKLFKSRUWLRQVRIWKHZRUNWKDW\RXDUHGLVWULEXWLQJDUH2SHQ*DPH&RQWHQW
 8SGDWLQJ WKH /LFHQVH :L]DUGV RU LWV GHVLJQDWHG $JHQWV PD\ SXEOLVK XSGDWHG
YHUVLRQV RI WKLV /LFHQVH <RX PD\ XVH DQ\ DXWKRUL]HG YHUVLRQ RI WKLV /LFHQVH WR
DQGZKLFKVSHFLILFDOO\H[FOXGHVWKH2SH Q*DPH&RQWHQWI7UDGHPDUNPHDQVWKH FRS\PRGLI\DQGGLVWULEXWHDQ\2SHQ*DPH&RQWHQWRULJLQDOO\GLVWULEXWHGXQGHUDQ\
ORJRVQDPHVPDUNVLJQPRWWRGHVLJQVWKDWDUHXVHGE\D&RQWULEXWRUWRLGHQWLI\ YHUVLRQRIWKLV/LFHQVH 
LWVHOI RU LWV SURGXFWV RU WKH DVVRFLDWHG SURGXFWV FRQWULEXWHG WR WKH 2SHQ *DPH &RS\RIWKLV/LFHQVH<RX0867LQFOXGHDFRS\RIWKLV/LFHQVHZLWKHYHU\FRS\
/LFHQVH E\ WKH &RQWULEXWRU J8VH8VHG RU 8V LQJ PHDQV WRXVH 'LVWULEXWH RIWKH2SHQ*DPH&RQWHQW<RX'LVWULEXWH
FRS\ HGLW IRUPDW PRGLI\ WUDQVODWH DQG RWKHUZLVH FUHDWH 'HULYDWLYH 0DWHULDO RI 8VHRI&RQWULEXWRU &UHGLWV <RXPD\ QRWPDUNHW RUDGYHUWLVH WKH 2SHQ*DPH
2SHQ *DPH &RQWHQW K <RX RU <RXU PHDQV WKH OLFHQVHH LQ WHUPV RI WKLV
DJUHHPHQW
 7KH /LFHQVH 7KLV /LFHQVH DSSOLHV WRDQ\ 2SHQ *DPH &RQ WHQW WKDW FRQWDLQVD
QRWLFHLQGLFDWLQJWKDWWKH2SHQ*DPH&RQWHQWPD\RQO\EH8VHGXQGHUDQGLQWHUPV
RIWKLV/LFHQVH<RXPXVWDIIL[VXFKDQRWLFHWRDQ\2SHQ*DPH&RQWHQWWKDW\RX
8VH1RWHUPVPD\EHDGGHGWRRUVXEWUDFWHGIURPWKLV/LFHQVHH[FHSWDVGH VFULEHG
E\ WKH /LFHQVH LWVHOI 1R RWKHU WHUPV RU FRQGLWLRQV PD\ EH DSSOLHG WR DQ\ 2SHQ
*DPH&RQWHQWGLVWULEXWHGXVLQJWKLV/LFHQVH
2IIHU DQG $FFHSWDQFH %\ 8VLQJ WKH 2SHQ *DPH &RQWHQW <RX LQGLFDWH <RXU
DFFHSWDQFHRIWKHWHUPVRIWKLV/LFHQVH
&RQWHQWXVLQJWKHQDPHRIDQ\&RQWULEXWRUXQOHVV<RXK DYHZULWWHQSHUPLVVLRQIURP
WKH&RQWULEXWRUWRGRVR
,QDELOLW\WR&RPSO\,ILWLVLPSRVVLEOHIRU<RXWRFRPSO\ZLWKDQ\RIWKHWHUPVRI
WKLV/LFHQVHZLWKUHVSHFWWRVRPHRUDOORIWKH2SHQ*DPH&RQWHQWGXHWRVWDWXWH
MXGLFLDORUGHURUJRYHUQPHQWDOU HJXODWLRQWKHQ<RXPD\ QRW 8VHDQ\2SHQ*DPH
0DWHULDOVRDIIHFWHG
7HUPLQDWLRQ7KLV/LFHQVHZLOOWHUPLQDWHDXWRPDWLFDOO\LI<RXIDLOWRFRPSO\ZLWK
DOOWHUPVKHUHLQDQGIDLOWRFXUHVXFKEUHDFKZLWKLQGD\VRIEHFRPLQJDZDUHRI
WKHEUHDFK$OOVXEOLF HQVHVVKDOOVXUYLYHWKHWHUPLQDWLRQRIWKLV/LFHQVH
 2KMGR3[SHU0[SHU
 5HIRUPDWLRQ,I DQ\SURYLVLRQ RI WKLV/LFHQVH LVKHOG WREHXQHQIRUFHDEOHVXFK DSSHDUV RQ SDJH   1R PDWHULDO LQ WKH FKHPLFDO ZHDSRQV VHFWLRQ LV FRQVLGHUHG
SURYLVLRQVKDOOEHUHIRUPHGRQO\WRWKHH[WHQWQHFHVVDU\WRPDNHLWHQIRUFHDEOH 2SHQ&RQWHQW

&23<5,*+7127,&(
2SHQ*DPH/LFHQVH Y&RS\ULJKW:L]DUGVRIWKH&RDVW,QF
6\VWHP5HIHUHQFH'RFXPHQW&RS\ULJKW:L]DUGVRIWKH&RDVW,QF$XWKRUV
-RQDWKDQ 7ZHHW 0RQWH &RRN  6NLS :LOOLDPV EDVHG RQ RULJLQDO PDWHULDOV E\ (
*DU\*\JD[DQG'DYH$UQHVRQ
$FWLRQ6\VWHP2SHQ&RQWHQWSDUDOOHOVWKH'2SHQ&RQWHQWVHFWLRQIRUVHFWLRQ
7KLV FRQVLVWV RI UXOHV XQG HU WKH KHDGLQJ RI ³$FWLRQ 6\VWHP 6SHFLDO 5XOHV ´ RQ
SDJHV  DQG  ZKHQ YLHZHG RQVFUHHQ LQ 3') IRUPDW $GGLWLRQDOO\ WKH JD PH
VWDWLVWLFVVSHFLILFWRXVHLQWKH$FWLRQ6\VWHPDUHDOVRGHVLJQDWHGDVRSHQFRQWHQW
7KHVHVWDWLVWLFVDSSHDULQVPDOOWDEOHVDEODQNH[DPSOHRIZKLFK DSSHDUVRQ SDJH

G6\VWHP DQG WKH

G  6\VWHP ORJR
 DUH WUDGHPDUNV RZQHGE\ :L]DUGV RI WKH  RI9ROXPH 
&RDVWDQGDUHXVHGDFFRUGLQJWRWKHWHUPVRIWKHG6\VWHP/LFHQVHYHUVLRQ
$FRS\RIWKLVOLFHQVHFDQEHIRXQGDW ZZZZL]DUGVFRP )8'*(1RWLFHV

$FWLRQ6\VWHP
DQGWKH $FWLRQ6\VWHPORJRDUHWUDGHPDUNVRI*ROG5XVK*DPHV $%287)8'*(
DQGDUHXVHGZLWKSHUPLVVLRQ )XGJHLVDUROHSOD\LQJJDPHZULWWHQE\6WHIIDQ2
6XOOLYDQZLWKH[WHQVLYHLQSXWIURP
2ULJLQDO )XGJH PDWHULDOV &RS\ULJKW ‹  E\ 6WHIIDQ 2
6XOOLYDQ $OO 5LJKWV WKH8VHQHWFRPPXQLW\RIUHFJDPHVGHVLJQ7KHEDVLFUXOHVRI)XGJHDUHDYDLODEOH
5HVHUYHG RQ WKH LQWHUQHW DW KWWSZZZIXGJHUSJFRP DQG LQ ERRN IRUP IURP *UH\ *KRVW
7KH )8'*( 6\VWHP ORJR LV D WUDGHPDUN RI 6WHIIDQ 2¶6XOOLYDQ DQG XVHG XQGHU *DPHV32%R[5DQGROSK0$7KH\PD\EHXVHGZLWKDQ\JDPLQJ
OLFHQVH JHQUH:KLOHDQLQGLYLGXDOZRUNGHULYHGIURP)XGJHPD\VSHFLI\FHUWDLQDWWULEXWHV
%LJ%DQJ7KH0RVWO\,OOXVWUDWHG53**XLGHWKH0RGHUQ:HDSRQV&\EHU7KULOOHU‹ DQGVNLOOVPDQ\PRUHDUHSRVVLE OHZLWK)XGJH(YHU\*DPH0DVWHUXVLQJ)XGJHLV
DQGŒ'DQD-RUJHQVHQ$OO5LJKWV5HVHUYHG HQFRXUDJHGWRDGGRULJQRUHDQ\FKDUDFWHUWUDLWV$Q\RQHZKRZLVKHVWRGLVWULEXWH
$OO ZHDSRQ LPDJHV WDNHQ IURP IRU GLVWULEXWLRQ SUHVV UHYLHZ DQG SURPRWLRQDO VXFK PDWHULDO IRU IUHH PD\ GRVR PHUHO\ LQFOXGH WKLV $%287 )8'*( QRWLFH DQG
PDWHULDOV SXEOLVKHG E\ ZHDSRQV PDQXIDFWXUHUV ,PDJHV DUH FRS\U LJKW WKHLU
UHVSHFWLYHPDQXIDFWXUHUV$OO5LJKWV5HVHUYHG
8OWUDPRGHUQ)LUHDUPV'‹&KDUOHV0F0DQXV5\DQ
6XOOLYDQ32
'HVLJQDWLRQRI2SHQ&RQWHQW
7KH'2SHQ&RQWHQWFRQVLVWVRI VSHFLDO UXOHVXQGHUWKHKHDGLQJRI'6\VWHP
6SHFLDO5XOHVZULWWHQLQEROGW\SH 7KHVHDUHRQSDJHDVOLVWHGZLWKLQWKHVFUHHQ
YLHZRIWKH3')$GGLWLRQDOO\LWDOVRLQFOXGHV WH[WOLVWHGXQGHUWKHKHDGLQJRI ³'
6\VWHP5XOHV´OLVWHGRQSDJHV DQGLQWKH3')VFUHHQYLHZ $GGLWLRQDOO\WKH
6X OOLYDQRUDQ\SXEOLVKHURIRWKHU)XGJHPDWHULDOV1HLWKHU6WHIIDQ
JDPH VWDWLVWLFV VSHFLILF WR XVH LQ WKH ' 6\VWHP DUH DOVR GHVLJQDWHG DV RSHQ
6XOOLYDQQRUDQ\SXEOLVKHURIRWKHU)XGJHPDWHULDOVLVLQDQ\ZD\UHVSRQVLEOHIRU
FRQWHQW7KHVWDWLVWLFVDSSHDULQVPDOOWDEOHV ,Q9ROXPH DQH[DPSOHRIWKLV WDEOH
6XOOLYDQ$OO5LJKWV5HVHUYHG
GLVFODLPHUFRPSOHWHZLWK)XGJHFRS\ULJKWQRWLF H,I\RXZLVKWRFKDUJHDIHHIRU
VXFKPDWHULDORWKHUWKDQDVDQDUWLFOHLQDPDJD]LQHRURWKHUSHULRGLFDO\RXPXVW
ILUVWREWDLQDUR\DOW\ IUHHOLFHQVHIURPWKHDXWKRURI)XGJH6WHIIDQ2
%R[3O\PRXWK1+
',6&/$,0(5
7KH IROORZLQJ PDWHULDOV EDVHG RQ )XGJH HQWLWOHG %LJ %DQJ WKH 0RVWO\ ,OOXVWUDWHG
53**XLGHWR0RGHUQ:HDSRQV DUHFUHDWHGE\PDGHDYDLODEOHE\DQG&RS\ULJKW
‹E\$OWHUQDWH5HDOLWLHV3XEOLFDWLRQVDQGDUHQRWQHFHVVDULO\HQGRUVHGLQDQ\
ZD\E\6WHIIDQ2
2
WKHFRQWHQWRIWKHVHPDWHULDOVXQOHVVVSHFLILFDOO\FUHGLWHG2ULJLQDO)XGJHPDWHULDOV
&RS\ULJKW‹E\6WHIIDQ2
 )GZGRUM 
@H9FB5H9
9**95@=H=9G(
G(I6@=75H=CBG
G5H5@C;
%LJ %DQJ 7KH 0RVWO\ ,OOXVWUDWHG 53* *XLGH WR FURVVWUDLQHG ZLWK WKH PLOLWDU\ WR KDQGOH WHUURULVP DQG ZHDSRQV RI
0RGHUQ:HDSRQV PDVVGHVWUXFWLRQDVZHOODVWKHXVXDO6:$7GXWLHV1RZFRPHVWKH
%LJ %DQJ LV WKH XOWLPDWH 53* JXLGH WR ILUHDUPV 3URYLGLQJ IDFWXDO ODWHVW HYROXWLRQ LQ SROLFH VSHFLDO RSV 0$' WKH 0LVFUHDQW
GDWD RQ WKH ZHDSRQV SUHVHQWHG %LJ %DQJ SURYLGHV VWDWLVWLFV IRU D $SSUHKHQVLRQ'LYLVLRQWKHFRSVWUDLQHGWRGHDOZLWKWKHZRUVWWKUHDW
QXPEHU RI UR\DOW\IUHH OLFHQVHG JDPH V\VWHPV )UHH FRQYHUVLRQ RIDOOURJXHF\ERUJVDQGURERWV5HOHDVHGDWH7%$
UXOHVDUHDYDLODEOHIRURWKHUJDPHV\VWHPV%LJ%DQJLVSXEOLVKHGLQ
D GDWDVKHHW IRUPDW IRU WKH XOWLPDWH RUJDQL]DWLRQDO FRQYHQLHQFH (GJH5RDG
$YDLODEOHDVDVHPLUHJXODU3')SXEOLFDWLRQRQOLQHDYDLODEOHQRZRU (GJH5RDGLVWKH*XLGHWRWKH&XWWLQJ(GJH$QLUUHJXODUO\SXEOLVKHG
DV DQ DQQXDO &'520 SURGXFW LQ VWRUHV QHZHVW DQQXDO HGLWLRQ VHULHV IRU 0RGHUQ 7HFKQRWKULOOHU DQG &\EHUSXQN JHQUH JDPHV WKLV
DYDLODEOHHDFK2FWREHU
&\EHU7KULOOHU
:HOFRPH WR WKH QHZ PHFFD RI &\EHUSXQN &\EHU7KULOOHU LV DQ
H[FHOOHQW QHZ JDPH SUHVHQWLQJ WKUHH WLPHOLQHV WKH PRGHUQ HUD RI
1RZWKHQ VWHSVLQWR WKHIXWXUH RIDQGPDNHVLWVWKLUGVWRS LQ
 &RPH YLVLW WKLV IRUERGLQJ ZRUOG ILOOHG ZLWK FRUSRUDWH VFDQGDO
LQWULJXHWHUURULVPUHYROXWLRQDQGPRUH$YDLODEOH6XPPHU
0RGHUQ6XSHUQDWXUDO
)RU WKRXVDQGV RI \HDUV WKH\ KDYH ZDONHG DPRQJVW XV 7KH\ DUH D
VWHSDKHDGRIXVSHRSOHZLWKXQLTXHWDOHQWVDQGJLIWVWKDWPDNHWKH
GHYRWHGTXDNHLQWKHLUERRWV)RUFHQWXULHVWKRVHJLIWHGSHRSOHKDYH
EHHQKXQWHG E\WKH GHYRXW ODEHOHGDVZLWFKHV ,QWKLVPRGHUQHUD
WKH KXQWHUV KDYH EHFRPH D WUXO\ RUJDQL]HG IRUFH WR FRQWHQG ZLWK
IHDUHGE\WKHZLWFKHVDQGWKHODZDOLNH$UH\RXRQHRIWKHKXQWHUV
RUWKHKXQWHG"$YDLODEOH:LQWHU
1HR&LW\6RXUFHERRN
2ULJLQDOO\ GHVLJQHG DV D IDQFRQWULEXWHG RQOLQH VRXUFHERRN IRU WKH
QRZGHDG&\EHUSXQNJDPHV\VWHPWKLVHQWLUHERRNKDVEHHQ
UHIDVKLRQHGWRILWLQWR&\EHUWKULOOHUDVLW
VSUHPLHUHVLWHIRUF\EHUSXQN
VXEWHUIXJH,QFOXGHVDQDSSHQGL[SURYLGLQJ&\EHUSXQNGDWDIRU
XVHZLWKWKDWJDPHV\VWHP$YDLODEOH6XPPHU
1HR&LW\$GYHQWXUHV
:KDW JRRG LV D FLW\ ZLWKRXW VRPH DGYHQWXUH WRPDNH LW LQWHUHVWLQJ"
7KLV SRUWIROLR RI DGYHQWXUHV DOO WDNH SODFH LQ 1HR&LW\ ,QFOXGHV
ERQXV PDWHULDO H[SDQGLQJ WKH 1HR&LW\ 6RXUFHERRN  $YDLODEOH
:LQWHU
%UXVK:DUV
:HOFRPHWRWKHPLOLWDU\ 7KHDJHRI HSLFZDUIDUHDQG JUDQGEDWWOHV
KDV FRPH WR DQ HQG 7KHVH GD\V DOO FRQIOLFWV VHHP WR EH ORZ
LQWHQVLW\DVWUXJJOHEHWZHHQVPDOORSSRVLQJIRUFHVRQDVFDOHWKDW
ZDVRQFHFRQVLGHUHGDPHUHDPEXVKRUVNLUPLVK7KHVHGD\VILYHRU
WHQPHQFDQKDQGOHWKHMREGRQH\HDUVDJRE\DQHQWLUHSODWRRQ
RU\HDUVDJRE\DQHQWLUHFRPSDQ\RIWURRSV5HOHDVHGDWH7%$
%ODFN%RRNRI7HUURULVP
:H QRZ OLYH LQ D ZRUOG ZKHUH DFWV RI WHUURULVP KDSSHQ GDLO\ RQ
VFDOHV ERWK ODUJH DQG VPDOO 7KLV ERRN SURYLGHV ERWK KLVWRULFDO DQG
WHFKQLFDOUHIHUHQFH DVZHOODVWKRXJKWVDQGWKHRULHVRQERWK WHUURU
DQGFRXQWHULQJLW$YDLODEOH)DOO
0$'*UDILWWL
:HOFRPH WR WKH ZRUOG RI VSHFLDO RSHUDWLRQV SROLFH XQLWV 2ULJLQDOO\
WKHUHZDV6:$7WKHRULJLQDOSROLFHVSHFLDORSVXQLWIRUPHGEDFNLQ
WKH 
V WUDLQHG LQ WKH WDFWLFV RI VWRUPLQJ D EXLOGLQJ DQG GHDOLQJ RI YDULRXV ZHDSRQV RI PDVV GHVWUXFWLRQ +RZHYHU WKH ZRUOG
ZLWKKHDYLO\DUPHGFULPLQDOV:LWKWKHQHZPLOOHQLXPFDPH(6:$7
D QHZ SROLFH VSHFLDO RSV XQLW GHVLJQHG WR IDFH QHZ WKUHDWV DQG
ERRNIROORZVWHFKQRORJLFDOWUHQGVVFLHQWLILFGLVFRYHU\DQGJDGJHWV 
JLPPLFNV SUHVHQWLQJ WKHP LQ D PDQQHU WKDW PDNHV WKHP XVHIXO WR
WKHJDPH$VZLWK%LJ%DQJ(GJH5RDGZLOOEHD PXOWLV\VWHPJXLGH
WRDOOWKLQJVWHFKQRORJLFDO$YDLODEOH)DOO
%RRPWRZQ
:HOFRPHWRWKHODQGRIFRQFUHWHFDQ\RQVDQGJDQJ ZDUIDUH7DNHD
WULSWRD F\EHUSXQN/RV$QJHOHVDQGVHHZKDWWKHFLW\PD\ORRNOLNH
DIWHUWKH%LJ2QH5HOHDVHGDWH7%$
3&0 7KH3KLODGHOSKLD&DPGHQ0HWURSOH[
:HOFRPH WR P\ KRPHWRZQ DUHD 1RWKLQJ EHDWV WKH IHHO RI D ERRN
ZULWWHQ E\ WKH ORFDOV &RPH WDNH D ORRN DW WKH FLW\ WKDW KDV TXLHWO\
EHFRPHWKHFHQWHURIWKHELRFKHPLVWU\LQGXVWU\DQGZRUNLQJKDUGWR
EHFRPHDFRUHIRULQWHUQHWWHFKQRORJ\LQGXVWULHV5HOHDVHGDWH7%$
5DELG+HOL[
:KDWKDSSHQVZKHQJHQHWLFHQJLQHHULQJJRHVDVWUD\"7KHUHVLGHQWV
RI 1HR&LW\ ZLOO ILQG RXW DQG QR RQH EH WKH\ UHVLGHQWV RI WKH
FRUSRUDWH WRZHU IRUWUHVVHV DERYH RU WKH VOXPV RI WKH )UHH =RQH
EHORZLVVDIH$YDLODEOH)DOO
$<HDURI/LYLQJ'DQJHURXVO\
7KHFKDOOHQJHLVDWRXJKRQH<RXUWDVNLVWRSURWHFWWKHOLIHRIDWRS
UDWHG6LP:LUHVWDUGXULQJWKHILOPLQJRIKLVQH[W ILOP8QIRUWXQDWHO\
WKH VWDU DOVR OLNH DFWLYLVP DQG VHHNV WR H[SRVH FRQVSLUDWRULDO
SUREOHPV LQ WKH ZRUOG ZLWK PRUH WHQDFLW\ WKDQ DQ LQYHVWLJDWLYH
UHSRUWHU +LV QH[W IOLFN UHYROYHV DURXQG IHQGLQJ RII DWWHPSWV WR
DVVDVVLQDWH KLP DQG H[SRVLQJ ZKLFK RQH RI KLV WRR QXPHURXV
HQHPLHVLVEHKLQG WKHSORW&DQ\RXVXUYLYH D\HDURIJXDUGLQJWKLV
WZLWLQRUGHUWRJHWWKHELJSD\RIIDWWKHHQG"5HOHDVHGDWH7%$
6XE2UELWD
:H OLYH LQ DQ HYHUH[SDQGLQJ ZRUOG WKDW LV UDSLGO\ DSSURDFKLQJ D
SRLQWZKHUHLWZLOOJURZZHOOEH\RQGWKHERUGHUVLPSRVHGE\LWVRZQ
JUDYLW\ 7DNH D ORRN LQWR KXPDQ H[SORUDWLRQ RI VSDFH DV LW LV QRZ
DQGDVLWKRSHIXOO\ZLOOEHLQDIXWXUHZKHUHVSDFHWUDYHOLVDOPRVWDV
HDV\DVJHWWLQJLQWRWKHIDPLO\FDU5HOHDVHGDWH7%$
6XE$TXD
(YHQ DV ZH H[SDQG LQWR WKH DLUOHVV YDFXXP RI VSDFH VR VKDOO ZH
H[SDQG LQWR WKH DLUOHVV HQYLURQPHQWV RI WKH RFHDQ GHSWKV WKDW FDQ
NLOO XV DV HDVLO\ DV VSDFH ([SORUH WKH WHFKQRORJLHV RI OLIH EHQHDWK
WKHRFHDQZDYHV5HOHDVHGDWH7%$
$$
:HOFRPH WR WKH \HDU  $$ 7KDW¶V  $IWHU
$UPDJHGGRQ7KHZRUOG DVZHNQHZLWYDQLVKHG LQ WKHKD]\ FORXGV
VWUXJJOHVRQDQGWKHKXPDQVSHFLHVVXUYLYHVRQHZD\RUDQRWKHU«
7DNHDMRXUQH\LQWRWKHIRXUWKWLPHOLQHGHYHORSHGIRU&\EHU7KULOOHU
Big Bang is an open-ended series of reference books designed for avid
players of roleplaying games, especially in the modern and near future
genres. Each volume presents factual data and information on a
number of weapons, including details of the weapon’s history, along
with statistics allowing immediate use in a number game systems. The
factual, real world data can be used to easily adapt the presented
weapons to a wide range of game systems.

This series is not designed as a stand-alone game. It requires the

use of core rules from another game system.

Requires the use of the Action! System ™ Core Rules,

published by Gold Rush Games™
Requires the use of the d20 Modern ™ Roleplaying Game,
published by Wizards of the Coast, Inc.