Question Paper

COMMON LAW ADMISSION TEST-2020 -UG
English
Climate change is considered to be one of the most serious threats to sustainable

development, with adverse impact on the environment, human health, food security,
economic activity, natural resources and physical infrastructure. According to the
Intergovernmental Panel on Climate Change (IPCC), the effects of climate change have
already been observed, and scientific findings indicate that precautionary and prompt action
is necessary. Vulnerability to climate change is not just a function of geography or
dependence on natural resources; it also has social, economic and political dimensions which
influence how climate change affects different groups. Poor people rarely have insurance to
cover loss of property due to natural calamines i.e. drought, floods, super cyclones etc. The
poor communities are already struggling to cope with the existing challenges of poverty and
climate variability and climate change could push many beyond their ability to cope or even
survive. It is vital that these communities are helped to adapt to the changing dynamics of
nature. Adaptation is a process through which societies make themselves better able to cope
with an uncertain future. Adapting to climate change entails taking the right measures to
reduce the negative effect of climate change (or exploit the positive ones) by making the
appropriate adjustments and changes. These range from technological options such as
increased sea defences or flood proof houses on stilts to behavioural change at the individual
level, such as reducing water use in times of drought. Other strategies include early warning
systems for extreme events, better water management, improved risk management, various
insurance options and biodiversity conservation. Because of the speed at which climate
change is happening due to global temperature rise, it is urgent that the vulnerability of
developing countries to climate change is reduced and their capacity to adapt is increased and
national adaptation plans are implemented. Communities must build their resilience,
including adopting appropriate technologies while making the most of traditional knowledge,
and diversifying their livelihoods to cope with current and future climate stress. Local coping
strategies and knowledge need to be used in synergy with government and local
interventions. The need of adaptation interventions depends on national circumstances. There
is a large body of knowledge and experience within local communities on coping with
climatic variability and extreme weather events. Local communities have always aimed to
adapt to variations in their climate. Local coping strategies are an important element of
planning for adaptation. Traditional knowledge can help to provide efficient, appropriate and
time tested ways of advising and enabling adaptation to climate change in communities who
are feeling the effects of climate changes due to global warming.
1. To address the challenge of Climate Change, Developing countries urgently require:
(a) Implementation of National Adaptation Plans

(b) Adoption of short term plans
(c) Adoption of technological solutions
(d) Imposition of Climate Change tax
CORRECT ANSWER : OPTION A
Page 1 of 46
2. Given below are the factors of vulnerability of poor people to climate changes. Select the
option that contains the correct answer.
(1) Their dependence on natural resources
(2) Geographical attributes
(3) Lack of financial resources
(4) Lack of Traditional knowledge
Codes:
(a) (2), (3) and (4)
(b) (1), (2), (3) and (4)
(c) (3) only
(d) (1), (2) and (3)
CORRECT ANSWER : OPTION D
3. Which of the following is against the idea portrayed in the passage?

(a) Co-ordination between regional and national efforts is necessary.
(b) The process of Adaptation to climate change does not take into account the factor of
prevailing national circumstances.
(c) Social dimensions of climate change also need to be appreciated.
(d) Combining Traditional Knowledge with appropriate technology is the need of the hour.
CORRECT ANSWER : OPTION B
4. The Traditional Knowledge should be used through

(a) Improvement in national circumstances
(b) Synergy between Government and local interventions
(c) Imposition of Climate Change Tax.
(d) Its dissemination
5. What is the meaning of the word ‗Resilience‘ occurring in the passage?

a) Toughness
b) Fragility
c) Flexibility
d) Vulnerability
CORRECT ANSWER : OPTION C
The uncovering of a private Instagram group styling itself ‗Bois Locker Room‘ featuring
students from some prominent South Delhi schools discussing their female classmates in
disturbingly violent ways including plans of sexual assault is a wakeup call for parents and
authorities. The group formed last month or so kicked up a social media storm when
screenshots surfaced. Police have questioned a 15 year old boy to identify other members.
Similar incidents involving minors discussing rape/ gang rape of classmates have been
reported on other digital platforms like WhatsApp too, across cities. The exchanges in the
now deleted group require precise responses from police, parents and school authorities
around whom the fates of the juveniles involved now revolve. It is important to recognise
where a teenager spouting objectification of his female counterparts is coming from. People
of all ages, not just children, are retreating deeper into the recesses of their online avatars
Page 2 of 46
during this lockdown. But the heavy technological investment in children‘s education,
including flooding them with personal smartphones, has not been matched by serious
conversations centred on responsible internet usage and equality. Young, impressionable
minds absorb the normalisation of rape from the adults around them. When what they see,
read and hear is toxic masculinity, that is what they perform. That‘s what peer pressure
becomes about. But if this youthful role play of macho dominance receives timely
counselling, it can prevent far graver adult offences. Schools and parents have a critical role
to play in educating children on gender equality. Digital platforms which claim to have zero
tolerance towards content that violates community standards must also explain why such
abuses go undetected, despite boasts about Artificial Intelligence-driven technologies to stop
them. They should play a more proactive role in stopping the sexual harassment of real
people in the guise of virtual sport.
[Editorial Published in Times of India, dated 6 May, 2020]
6. What is the Central Idea being conveyed by the Author in the passage above?
a) Modern Social Networking platforms must take the lead in regulating young people from
using these platforms for sexual abuse.
b) It is significant to educate children and youngsters about gender equality.
c) Digital Platforms need to have a zero tolerance policy towards content leading to sexual
abuse.
d) None of the above.
7. As per author, why is this incident a wake-up call for parents?

a) Because even the parents are indulged heavily in social networking platforms.
b) Because parents have failed to stop their children from committing such blunders.
c) Because it is the primary responsibility of parents to control their children.
d) Because the parents have failed in educating their children regarding fair internet usage
and have simply invested in the technology driven education of their children.
8. According to the author, in order to understand the root cause of such insensitive incidents,
it is important to:
a) Understand and examine the kind of socialisation process these children are exposed to.
b) Adopt Artificial Intelligence driven technologies.
c) Strengthen the environment of discipline in schools and colleges.
d) All of the above.
9. On the basis of your reading of the passage, which of the following statements can be
inferred?
a) Sexual Offenses can be reduced by timely counselling from parental and quasi-parental
authorities i.e., parents and teachers respectively.
b) If digital platforms implement a Zero Tolerance Policy towards such a menace, sexual
offenses can be completely stopped.
c) Investment in education of children is enough to curb the menace.
Page 3 of 46
10. Which of the following words are synonymous with the word ‗Spouting‘?
a) Pouring
b) Streaming
c) Erupting
d) All of the Above.
The snow was falling, and the Cat's fur was stiffly pointed with it, but he was imperturbable.
He sat crouched, ready for the death-spring, as he had sat for hours. It was night but that
made no difference, all times were as one to the Cat when he was in wait for prey. Then, too,
he was under no constraint of human will, for he was living alone that winter. Nowhere in the
world was any voice calling him; on no hearth was there a waiting dish. He was quite free
except for his own desires, which tyrannized over him when unsatisfied as now. The Cat was
very hungry. almost famished, in fact. For days the weather had been very bitter...and the
Cat's long hunt had availed him nothing. But he waited with the inconceivable patience and
persistency of his race; besides, he was certain. The Cat was a creature of absolute
convictions, and his faith in his deductions never wavered. The rabbit had gone in there
between those low-hung pine boughs. The Cat had seen her enter...so he sat down and
waited, and he waited still in the white night, listening angrily to the north wind starting in
the upper heights of the mountains with distant screams, then swelling into an awful
crescendo of rage, and swooping down with furious white wings of snow like a flock of
fierce eagles into the valleys and ravines. The Cat was on the side of a mountain, on a
wooded terrace. Above him, a few feet away towered the rock ascent as steep as the wall of a
cathedral. He had often looked with wonder at the rock, and miauled bitterly and resentfully
as man does in the face of a forbidding Providence. At his left was the sheer precipice.
Behind him...was the frozen perpendicular wall of a mountain stream. Before him was the
way to his home. When the rabbit came out she was trapped; her little cloven feet could not
scale such unbroken steeps. So the Cat waited. The tangle of trees and bushes clinging to the
mountain-side with a stern clutch of roots, the prostrate trunks and branches, the vines
embracing everything with strong knots and coils of growth, had a curious effect, as of things
which had whirled for ages in a current of raging water, only it was not water, but wind,
which had disposed everything in circling lines of yielding to its fiercest points of onset. It
was as if ice needles pricked his skin through his beautiful thick fur, but he never faltered and
never once cried. He had nothing to gain from crying, and everything to lose; the rabbit
would hear him cry and know he was waiting.
[Excerpts from a Short story, „The Cat‟ by Mary E. Wilkins Freeman]
11. Which of the following suggests a synonymous meaning to the words ‗Providence‘ and
‗Crescendo‘ respectively?
a) Nemesis, Apex
b) Zenith, Nadir
c) Laxity, Prudence
d) Short-sightedness, Upsurge
Page 4 of 46
12. The passage has been adorned with numerous figure of speeches. Which of the following
combinations is correct?
a) Irony and Sarcasm
b) Alliteration and Pun
c) Simile and Personification
d) Metaphor and Onomatopoeia
13. The passage best demonstrates which one of the following motifs of Cat‘s Life?
a) To satisfy the pangs of hunger
b) To survive the harsh winters
c) A never ending wait
d) To hunt for Rabbit
14. The Author‘s description of ―...he was under no constraint of human will, for he was
living alone...‖ implies:
a) Cat‘s absolute freedom from everything
b) Cat‘s no association with human beings
c) Cat‘s loneliness
d) Cat‘s tyrannical demeanour
15. The lines, ―...but he never faltered and never once cried. He had nothing to gain from
crying, and everything to lose...‖, suggest that the Cat is:
a) Reflective
b) Apologetic
c) Resilient
d) Frustrated
I am losing my interest in human beings; in the significance of their lives and their actions.
Someone has said it is better to study one man than ten books. I want neither books nor men;
they make me suffer. Can one of them talk to me like the night – the Summer night? Like the
stars or the caressing wind?
The night came slowly, softly, as I lay out there under the maple tree. It came creeping,
creeping stealthily out of the valley, thinking I did not notice. And the outlines of trees and
foliage nearby blended in one black mass and the night came stealing out from them, too, and
from the east and west, until the only light was in the sky, filtering through the maple leaves
and a star looking down through every cranny.
The night is solemn and it means mystery.
Human shapes flitted by like intangible things. Some stole up like little mice to peep at me. I
did not mind. My whole being was abandoned to the soothing and penetrating charm of the
night. The katydids began their slumber song: they are at it yet. How wise they are. They do
not chatter like people. They tell me only: ―sleep, sleep, sleep.‖ The wind rippled the maple
leaves like little warm love thrills. Why do fools cumber the Earth! It was a man‘s voice that
broke the necromancer‘s spell. A man came today with his ―Bible Class.‖ He is detestable
with his red cheeks and bold eyes and coarse manner and speech. What does he know of
Page 5 of 46
Christ? Shall I ask a young fool who was born yesterday and will die tomorrow to tell me
things of Christ? I would rather ask the stars: they have seen him.
[Short Story by Kate Chopin]
16. Why has the author lost interest in human beings?

a) Because they make the author suffer.
b) Because the human beings do not bring with them the warmth and the comfort which
comes naturally with the night, starts and the wind.
c) Because human beings are not mysterious.
17. The author has compared the night with:

a) The Katydids
b) The Necromancer‘s spell
c) Stars
18. Why has the author called the ‗katydids‘ wise?

a) Because they sing a slumber song.
b) Because they tell the author to only ‗sleep‘.
c) Because they do not indulge in unnecessary and unimportant talks.
d) Because they are not fools.
19. Which of the following can be inferred from the passage?

a) Being close to nature can bring one closer to God.
b) Nature is just a mystery.
c) Books and Man are both detestable.
d) None of these.
20. Which of the following words from the passage mean ‗rough‘?
a) Solemn
b) Caressing
c) Coarse
d) Slumber
It was the strangest murder trial I ever attended, where the old woman was found battered to
death. He was a heavy stout man with bulging bloodshot eyes. All his muscles seemed to be
in his thighs. The clock had just struck two in the morning. Mrs Salmon in 15 Northwood
Street had been unable to sleep: she heard a door click shut and thought it was her own gate.
So she went to the window and saw Adams (that was his name) on the steps of Mrs Parker's
house. He had just come out and he was wearing gloves. He had a hammer in his hand and
she saw him drop it into the laurel bushes by the front gate. But before he moved away, he
had looked up at her window. The fatal instinct that tells a man when he is watched exposed
Page 6 of 46
him in the light of a streetlamp to her gaze-his eyes suffused with horrifying and brutal fear,
like an animal's when you raise a whip.
Mrs Salmon was called in the Court.
Ànd do you see the man here in court?'
[She looked straight at the big man in the dock, who stared hard at her with his Pekingese
eyes without emotion.]
`Yes,' she said, `there he is.'
`You are quite certain?'
She said simply, Ì couldn't be mistaken, sir.'
`Thank you, Mrs Salmon.'
[Counsel for the defence rose to cross-examine.]
`Now, Mrs Salmon, you must remember that a man's life may depend on your evidence.'
Ì do remember it, sir.'
Ìs your eyesight good?'
Ì have never had to wear spectacles, sir.'
`You are a woman of fifty-five?'
`Fifty-six, sir.'
Ànd the man you saw was on the other side of the road?'
`Yes, sir.'
Ànd it was two o'clock in the morning. You must have remarkable eyes, Mrs Salmon?'
`No, sir. There was moonlight, and when the man looked up, he had the lamplight on his
face.'
Ànd you have no doubt whatever that the man you saw is the prisoner?'
`None whatever, sir. It isn't a face one forgets.'
Then he said, `Do you mind, Mrs Salmon, examining again the people in court?
No, not the prisoner. Stand up, please, Mr Adams!
And there at the back of the court with thick stout body and muscular legs and a pair of
bulging eyes, was the exact image of the man in the dock.
`Now think very carefully, Mrs Salmon. Can you still swear that the man you saw drop the
hammer in Mrs Parker's garden was the prisoner and not this man, who is his twin brother?'
Of course she couldn't.
[Excerpts from „The Case for the Defence‟ by Graham Greene]
21. Why do you think, has the Author called the trial, ‗strangest‘ murder trial he ever
attended?
a) Because the accused had a very strange personality.
b) Because, despite having a potential witness and evidence against the accused, his wrong
could not be proved.
c) Because, Mrs. Salmon‘s evidence could not be proved before the Court.
d) None of these.
22. ―…his eyes suffused with horrifying and brutal fear, like an animal's when you raise a
whip.‖ can be called as:
a) Personification
b) Simile
c) Onomatopoeia
d) None of the above
Page 7 of 46
23. The expression ‗Pekingese eyes‟ used in the passage refers to which of the following?
a) Bulging eyes
b) Red eyes
c) Small eyes
d) None of them
24. Why was Mrs. Salmon convinced that the man she saw had committed the crime?
a) Because she saw the man on the steps of Mrs. Parker‘s House and he was wearing gloves.
b) Because he had a hammer in his hand and she saw him drop it into the laurel bushes by the
front gate.
c) Because when he looked up at her window, his eyes were suffused with horrifying and
brutal fear.
d) Because she had seen him clearly in the light of street lamp.
25. Who was murdered in the scene described in the passage?

a) Mrs. Wheeler
b) Mrs. Parker
c) Mrs. Salmon
d) It cannot be inferred.
The world has very few devices left to fight COVID-19 with, but technology remains one of
them. Whether it is employing the state-of-the-art technology in the discovery of cures or
vaccines, or traditional technology services to enhance health care and consultations, or even
tools that keep people at home occupied/productive, it is clear that technology will serve
humanity at one of its darkest moments. The pandemic has contributed, in no small measure,
to the understanding of the myriad ways in which available technologies have not been put to
better use, and presented people with multiple opportunities to harness these devices,
techniques and methods to get on with life in the time of lockdown. Among the primary uses
is telemedicine, rendered inexorable now, by the temporary paralysis brought on by a freeze
on movement. The Centre‘s recent guidelines allowing for widespread use of telemedicine
services came as a shot in the arm for telehealth crusaders in the country, among them the
Telemedicine Society of India that has long been battling to use the technology in its
complete arc to reach remote areas in India. This move finds consonance with the rest of the
world where several nations, also deeply impacted by the pandemic, have deployed
telemedicine to reach people who have been unable to come to hospital, to reduce footfalls in
hospitals, and to even provide medical and mental health counselling to countless people. It
was way back in 2000 that telemedicine was first employed in India, but the progress has
been excruciatingly slow, until the pandemic. However, it does seem as if the medical
community was only held back by the lack of legislation to enable tele consultations. For no
sooner was the policy announced, than hospitals and clinicians hurried to jump onto the
bandwagon, advertising contact information for patients. The advantages are peculiar in the
current context, when putting distance between people is paramount, as tele consultations are
not barred even when health care professionals and patients may have to be quarantined. The
advancement of telecommunication capabilities over the years has made the transmission of
images and sound files (heart and lung sounds, coughs) faster and simpler. Pilot telemedicine
Page 8 of 46
experiments in ophthalmology and psychiatry have proven to be of immense benefit to the
communities. Telemedicine‘s time is here, finally. While unleashing the full potential of
telemedicine to help people, experts and government agencies must be mindful of the
possible inadequacies of the medium, and securing sensitive medical information; such
cognisance should guide the use of the technology.
[From an Editorial published in „The Hindu‟ on April 17, 2020]
26. Which one of the following words from the passage means ‗unavoidable‘?
a) Inexorable
b) Myriad
c) Excruciatingly
d) Bandwagon
27. Which of the following best summarizes the main idea of the passage?
a) It is time to unleash the full potential of Telemedicine.
b) It is time to unleash the full potential of Telemedicine with cognisance of its possible
flaws.
c) Technology has not been utilised to its fullest to suit the current needs.
d) People should not be skeptical about the advantages of telemedicine.
28. Which of the following is a significant factor contributing in slow employment of

Telemedicine in India?
a) Telemedicine was never employed in India.
b) There was an absence of regulations regarding the use of telemedicine consultations and
medication systems.
c) Telemedicinal Society of India failed in its efforts to promote the importance of such a
system in the country.
29. Telecommunication based medication has the potential for an easy outreach because:
a) Pilot experiments in telemedicine have been proved to be successful.
b) It helps in easier communication of medical images from one place to another.
c) It helps in securing sensitive medical information.
30. What is the meaning of the expression ‗Shot in the arm‘ used in the passage?
a) Hitting the nail on its head.
b) Bull‘s Eye
c) Positive Impact on something
Page 9 of 46
Current Affairs including GK
Prime Minister Narendra Modi on Saturday said major global firms are looking at India as a
major investment destination, which is reflected by a robust inflow of Foreign Direct
Investment (FDI) last financial year, and through ‗Atmanirbhar Bharat Abhiyan‘ (Self-
Reliant India initiative) the country is shifting its focus from ‗Make in India‘ to ‗Make for
world‘. He said Independent India should be ―vocal for local‖ and asked citizens to glorify
Indian products to promote ‗Atmanirbhar Bharat‘. Unveiling his vision of a Self-Reliant
India, the Prime Minister said that the government has unveiled over Rs 110 lakh crore
National Infrastructure Pipeline (NIP) to boost the economy and create jobs. ―In order to
rapidly modernise India, there is a need to give a new direction to overall infrastructure
development,‖ he said, adding that over 7,000 projects under NIP have been already
identified. ―This will be, in a way, a new revolution in the field of infrastructure. This is the
time to end silos in infrastructure. There is a plan to connect the entire country with multi-
model connectivity infrastructure,‖ he said. NIP will play a crucial role in overcoming the
adverse impact of Covid-19 on the economy and catapult the economy in a higher growth
trajectory, he said. The government on December 31 last year unveiled the NIP with an aim
to make India a $5 trillion economy by 2024-25. The focus of the infrastructure pipeline is to
accelerate growth and create employment in both urban and rural areas.
Source: Excerpt from Hindustan Times, written by Rajeev Jayaswal. (Dated 15 th August,
2020)
31. The Government announced a stimulus package under the Self Reliant India Scheme for
the amount of _____________.
(a) 2 trillion
(b) 20 trillion
(c) 5 trillion
(d) 100 trillion
32. Which of the following is not a goal of the stimulus package announced under the
―Atmanirbhar‖ India?
(a) It will help in alleviating the distress of migrants when they return to their villages.
(b) It will help in achieving the goal of a self-sustainable rural economy.
(c) It would boost the One Nation One Market objective and help India to become the food
factory of the world.
(d) It will help in elevating quality of life in urban areas.
33. Which of the following events can be seen as the stepping stone for the growth of the
Foreign Direct Investment (FDI) in India?
(a) The launch of ‗Make in India‘ initiative in 2014.
(b) The Economic liberalisation in the year 1991.
(c) The Amendment in the FDI policy to increase the upper cap from 26% to 49%.
(d) All of the above.
Page 10 of 46
34. Which of the following is not related to the ―Vocal for Local‖ initiative of the Indian
Government?
(a) Rebooting the MSMEs especially the Khadi and village industries.
(b) Generating new opportunities of employment at the local level.
(c) Creating new economic hubs through disinvestment and FDIs.
(d) Promoting the indigenous manufacture and support through financial aid.
35. Under the National Infrastructure Pipeline, the Government plans to invest more than Rs.
102 lakh crore on infrastructure projects by 2024-25, with the Centre, States and the
private sector to share the capital expenditure. What is the ratio of such expenditure by
each of the stake holders?
(a) 50:25:25
(b) 40:40:20
(c) 39:39:22
(d) 34:33:33
The central bank doesn‘t disclose its foreign exchange management strategy, but it was
evident in the last few years that the rupee was not allowed to appreciate despite healthy
inflows, resulting in a rapid build-up of foreign exchange. From a low of $275 billion in
September of 2013, when rupee came under severe pressure due to so-called ‗taper tantrums‘
by the US Federal Reserve, India now has record foreign exchange reserves of [1] billion, as
on 21 August — a 95 per cent rise over seven years. Despite the Covid-19 pandemic, the
foreign exchange kitty swelled by $62 billion since March. In this seven-year period, rupee
ended the year with an appreciation against the dollar only once — in 2017. This year, the
rupee is so far down by 2.04 per cent against the dollar. The latest RBI statement suggested
that it is not uncomfortable with the appreciation in rupee, confirming the speculation among
currency analysts that a departure was made in the exchange management policy.
The Reserve Bank of India (RBI) said that it will conduct liquidity operations worth Rs
20,000 crore in two tranches through sale and purchase of government securities (G-Secs).
The two open market operations (OMOs) of Rs 10,000 crore each will be conducted on
September 10 and 17, the central bank said in an official release. This is now the second such
announcement in as many weeks. Last week, RBI had announced sale and purchase of G-
Secs worth Rs 20,000 crore, in two tranches, slated to be conducted on August 27 and
September 3. In another move, RBI announced the infusion of Rs 1 lakh crore in mid-
September through long-term repo operations (LTROs) at floating rates, or the prevailing
repo rate. Moreover, the central bank also gave an option to lenders who have earlier availed
funds through LTROs, to reverse their transactions before maturity.
Source: Excerpt taken from the Print.in, written by Manojit Saha. (Dated 2nd September,
2020.)
36. Which of the following has been replaced by [1] in the above passage?
(a) $ 537
(b) $ 498
Page 11 of 46
(c) $ 502
(d) $ 756
37. Which of the following economic policies have been recently used by the RBI to boost
the economy during the current Pandemic situation?
(a) FOREX SWAP
(b) LTROs (Long Term Repo Operations)
(c) OMOs (Open Market Operations)
38. Which of the following statements relate to the Long Term Repo Operations as measure
to support the economy in corona pandemic situations?
(a) It is a measure that is expected to bring down short-term rates and also boost investment
in corporate bonds.
(b) It would encourage banks to undertake maturity transformation smoothly and seamlessly
so as to augment credit flows to productive sectors.
(c) It will enhance liquidity in the banking system by Rs 1 trillion.
39. Which of the following will be used as a platform for core banking solutions to
implement the LTRO?
(a) E-cartel
(b) E-kuber
(c) E-CBS
(d) E-RBICBS
40. What is the notified amount of sum offered by the RBI under measures of the Foreign
Exchange Swap?
(a) $ 5 billion
(b) $ 16.71 billion
(c) $ 16.21 billion
(d) $ 5.02 billion
The first batch of five Rafale jets flew out of France on July 25 and will arrive in India on
Wednesday, July 29, when the fighter jets will officially be inducted and join the Indian Air
Force fleet in Haryana's Ambala. The fighter jets, built by French aviation firm [1], took off
from the Merignac airbase in southern France's Bordeaux today and landed safely at Al
Dhafra airbase in the UAE after a sortie of more than seven hours. The five aircraft will be
Page 12 of 46
the first tranche of the 36 planes bought by India from France in a Rs. 59,000-crore inter-
governmental deal in 2016. ―Delivery of ten aircraft has been completed on schedule. Five
will stay back in France for training Mission. The delivery of all thirty six aircraft will be
completed on schedule by the end of 2021,‖ the Indian embassy in France said in a statement.
The Rafale fighter jets are capable of carrying a range of highly effective weapons, including
the Meteor air-to-air missile and Scalp cruise missile. The Rafale jets will come with various
India-specific modifications, including Israeli helmet-mounted displays, radar warning
receivers, low-band jammers, 10-hour flight data recording, infra-red search and tracking
systems among others. The Air Force has readied the required infrastructure to welcome the
jets in its line-up.
Source: Excerpt taken from the NDTV, Reported by Vishnu Som, Edited by Shylaja Varma.
(Dated – 27th July, 2020)
41. The Rafale deal between India and France is seen to carry great strategic significance.
Which of the following is directly impacted by this deal?
(a) The Joint Strategic Vision of India-France Cooperation in the Indian Ocean Region.
(b) The one belt one road mission of the China.
(c) The Chinese initiative to build a new Silk route.
(d) The trade route of the Middle East.
42. The Indian Air Force is also in the process of procuring a new generation medium-range
modular air-to-ground weapon system Hammer to integrate with the Rafale jets. What
does the term Hammer stands for?
(a) Highly Advanced Modular Mutation Extended Range.
(b) Highly Agile Modular Munition Extended Range.
(c) Highly Advanced Modular Mitigation Extended Rafale.
(d) Highly Agile Modular Munition Extended Rafale.
43. Which of the following has been replaced by [1] in the passage?
(a) LAMSCO
(b) LUAD Defence France
(c) DASSAULT
(d) BORESCOPE
44. Which of the following indigenous organisations is responsible for the design, assembly
and fabrication of combat aircrafts in India?
(a) DRDO
(b) HAL
(c) DRAI
(d) ISRO
Page 13 of 46
45. Which of the following organisations/institutions is a major offset partner of India in the
Rafale Deal?
(a) Hindustan Aeronautics Limited

(b) Reliance Defence Limited
(c) Reliance Naval and Engineering Limited
(d) Pipavav Defence
On May 8, India‘s Defence Minister virtually inaugurated a new 80 km-long road in the
Himalayas, connecting to the border with China, at the Lipulekh pass. The Nepali
government protested immediately, contending that the road crosses territory that it claims
and accusing India of changing the status quo without diplomatic consultations. Among the
many escalatory moves since then, Nepal deployed police forces to the region, summoned the
Indian ambassador in Kathmandu, and initiated a constitutional amendment to formalise and
extend its territorial claims over approximately 400 sq km. India, on the other hand, has
conveyed its openness to a dialogue but does not seem to share Nepal‘s sense of urgency: its
initial statement agreed to a dialogue, but only after the COVID-19 crisis. India has been in
effective possession of this territory for at least sixty years, although Nepal claims it
conducted a census there in the early 1950s and refers to the 1815 Sugauli Treaty as
legitimising its claims. But India‘s new road, up to the Lipulekh pass, is not an unprecedented
change in the status quo. India has controlled this territory and built other infrastructure here
before, besides conducting its administration and deploying military forces up to the border
pass with China. The region is of strategic importance, and the new road is now one of the
quickest links between Delhi and the Tibetan plateau. In a 2015 statement, China also
recognised India‘s sovereignty by agreeing to expand trade through the Lipulekh pass.
Source: Excerpt from the brookings.edu, written by Dr. Constantino Xavier. (Dated- 11th
June, 2020)
46. Which of the following incidents can be seen as the direct cause of the border dispute
between India and Nepal?
(a) The Defence Minister inaugurated a motor-able link road that connects India and China.
(b) The 2015 agreement between India and China for using the Lipulekh pass for trade.
(c) India published a new map which showed the region of Kalapani as part of the Indian
Territory.
47. The confusion between Nepal and India consists of a dispute over a trijunture of
____________.
(a) Kali – Susta – Ganga.
(b) Kalapani – Saraswati – Ganga.
(c) Kalapani – Limpiyadhura – Lipulekh.
(d) Kalapani – Limpiyadhura – Kali.
Page 14 of 46
48. The treaty of Sugauli was signed between which of the following pairs?
(a) India and Nepal
(b) United kingdom, India and Nepal
(c) India, China and Nepal.
(d) East India Company and Nepal
49. Recently Nepal has issued a map claiming Lipulekh pass as part of its territory included
in the district of:
(a) Kailali
(b) Darchula
(c) Dipayal
(d) Doti
50. Which of the following rivers is called as Narayani River in Nepal?

(a) Bramhaputra
(b) Gandak
(c) Ganga
(d) Kali
One thing struck us as a major difference between the new National Education Policy (NEP)
2020 and its predecessor. The earlier national policies on education (NPE) from 1986 and
1992 presented themselves as attempts to consolidate and build on earlier efforts, particularly
the NPE, 1968. The new NEP 2020 policy, on the other hand, is very keen to establish that it
is different from everything in the past, including in its name. Nowhere does this attitude
come across as starkly as it does in the section on higher education.
It comes across fairly clearly on how the higher education ecosystem will be by 2040. By this
time — if the policy has its way — the Indian higher education ecosystem will be populated
with higher education institutions (HEI). These will comprise Universities and Colleges and
the public and private sectors, all of which will be ‗multi-disciplinary‘, with each populated
by more than 3,000 students, with at least one ―in or near every district‖. Universities will
conduct research and post-graduate and under-graduate teaching, some research-intensive
and others teaching-intensive. Colleges will largely teach at the under-graduate level, with a
number of them having their medium of instruction in either bilingual or local / Indian
languages. The colleges can manifest in clusters around universities as constituent colleges or
may be standalone autonomous ones. Ideally, all HEIs will eventually become ―independent
self-governing institutions‖ with considerable ―faculty and institutional autonomy‖. They will
have complied with a series of regulatory exercises that are ―light-but-tight‖ and will be
operated by a large number of private accreditors, overseen by a new set of regulatory
institutions at the national level.
Source: Excerpt taken from downtoearth.org.in, written by Nitin Mehta & Gagan Mehta.
(Dated 14th August, 2020)
Page 15 of 46
51. Which of the following statements are not true in relation to the changes envisioned by
the NEP 2020?
(a) The NEP 2020 aims at making India a global knowledge superpower.
(b) The renaming of the Ministry of Human Resource Development to the Ministry of
Education.
(c) The development of National Course Curriculum to provide new curriculum by 2021.
(d) The New Education Policy aims to facilitate an inclusive, participatory and holistic
approach
52. The NEP 2020 aims to provide a holistic change to the current education system in India.
Which of the following is not related to the aim of NEP 2020?
(a) Universalization of education from preschool to secondary level with 100% Gross
Enrolment Ratio.
(b) To bring 20 million out of school children back into the mainstream through an open
schooling system.
(c) Vocational Education to start from Class 6 with Internships.
(d) To achieve 80% Gross Enrolment Ratio at the under graduate level.
53. Which of the following is proposed as a change in the structure of institutions responsible
for affiliation and accreditation under the NEP 2020?
(a) Higher Education Commission of India (HECI) will be set up as a single umbrella body
for the entire higher education.
(b) University Grant Commission to be renamed as AICTE.
(c) National Affiliation and Accreditation Council to be renamed as National Standard
Council of India.
(d) National Council for Education Research and Teaching to be renamed as BCERT.
54. Which of the following is not a vertical under the Higher Education Commission of India
(HECI)?
(a) National Higher Education Regulatory Council (NHERC)
(b) Higher Education Grants Council (HEGC)
(c) National Educational Council (NEC)
(d) National Accreditation Council (NAC)
55. What is the proposed percentage of expenditure for education out of GDP under the NEP
2020?
(a) 11 percent
(b) 6 percent
(c) 4.6 percent
(d) 9 percent
Page 16 of 46
Days after India-Pakistan tensions spilled over into a meeting of the Shanghai Cooperation
Organisation (SCO), External Affairs Minister S. Jaishankar and Pakistan Foreign Minister
Shah Mehmood Qureshi are expected to meet via a video conference at the South Asian
Association for Regional Cooperation (SAARC) meeting on September 24. ―All member
countries have confirmed participation in the meeting, to be chaired by Pradeep Kumar
Gyawali, [1] of Nepal. The respective Foreign Ministers will take part,‖ sources familiar with
preparations for the meeting told The Hindu, referring to the eight members of SAARC,
including [2], Bangladesh, [3], India, [4], Nepal, Pakistan and Sri Lanka. A senior Indian
official also confirmed that Mr. Jaishankar will attend despite the incident at the SCO virtual
meeting of National Security Advisors on Tuesday. During that meeting, National Security
Advisor Ajit Doval stormed out after he saw that the Pakistan Special Advisor on National
Security Moeed Yusuf had used a map of Pakistan that claimed Indian Territory.
―This was in blatant disregard to the advisory by the host [5] against it and in violation of the
norms of the meeting. After consultation with the host, the Indian side left the meeting in
protest at that juncture,‖ the MEA had said about the incident. When asked, the sources said
that no specific guidelines on background or maps have been issued by the SAARC
Secretariat in Kathmandu that is also the Chair of the SAARC at present, but they hope it
would go ―smoothly‖. A meeting of SAARC Finance Ministers, where an Additional
Secretary represented India instead of Finance Minister Nirmala Sitharaman, and Pakistan
was represented by its Special Advisor on Finance, took place on Wednesday without
incident.
Source: Excerpt taken from The Hindu, written by Suhasini Haider. (Dated 17th September,
2020.)
(a) Prime Minister
(b) Minister of Finance
(c) Minister of External Affairs
(d) Minister of Home Affairs
57. Which of the following Nations is part of the South Asian Association for Regional
Cooperation?
(a) Indonesia
(b) Thailand
(c) Myanmar
(d) Maldives
(a) Russia
(b) China
(c) Japan
(d) Pakistan
Page 17 of 46
59. India had not agreed to attend a summit hosted in Pakistan, but it remains an important
promoter of the SAARC process. In which of the following years the SAARC leaders‘
summit was held lately?
(a) 2018
(b) 2014
(c) 2016
(d) 2019
60. The above passage mentions about Pakistan‘s Special Advisor on National Security
Moeed Yusuf using a map of Pakistan claiming Indian Territory. Which of the following
territory is in context here?
(a) Junagadh
(b) Aksai Chin
(c) Pangong Tso
(d) Limpiyadhura
In the middle of a pandemic, the geopolitics of the world‘s most troubled region took a
historic turn this week, when the UAE and Israel, under the benevolent gaze of US President
Donald Trump, signed an agreement to ―normalise‖ relations. The deal opens up new
opportunities for India to play a much larger role in the regional security and stability in the
Gulf, where New Delhi enjoys special relations with both Abu Dhabi and Jerusalem. The
barebones of the deal envisages establishing regular diplomatic relations between the UAE,
the rising influential power in the Gulf, and Israel, the ―Incredible Hulk‖ of the region, but a
country officially not on speaking terms with most of its Arab neighbours. In his first tweet,
Crown Prince Mohammed bin Zayed said: ‗During a call with President Trump and Prime
Minister Netanyahu, an agreement was reached to stop further Israeli annexation of
Palestinian territories. The UAE and Israel also agreed to cooperation and setting a roadmap
towards establishing a bilateral relationship.‖ In return, Israel agreed to ―suspend‖ its
annexation plans for West Bank that would have been deeply destabilising. Benjamin
Netanyahu gets a diplomatic victory, which may be short-lived, given the nature of Israeli
politics. But Israel gets a diplomatic and economic opening with the big power in the Gulf
that could open other doors, give its security interests legitimacy and, perhaps, open the door
to Middle East peace.
Many of the other Arab powers, such as Oman, Bahrain, Egypt and Jordan, apart from the big
global powers, and India, have welcomed the deal. Iran has slammed it, as have Turkey and
Syria. Saudi Arabia has been very quiet. Given the close ties between Mohammed bin Zayed
and Mohammed bin Salman, it is unthinkable that KSA was not consulted, particularly when
the US is the third pole in this agreement. The deal gives UAE pole position as the premier
Gulf Arab power, with diplomatic leverage with Israel and the US. ―This deal is about
positioning in Washington, DC,‖ said James Dorsey, Gulf and Middle East expert.
Source: Excerpt from the Economic Times, written by Indrani Bagchi. (Dated – 16th August,
2020)
Page 18 of 46
61. The US is seen as a major role player in the peace deal between Israel and UAE. Which
of the following is not a reason for the involvement of US in the deal?
(a) The deal grants a diplomatic win to the US President Donald Trump ahead of the
Presidential election.
(b) The efforts of the USA to bring the war in Afghanistan to an end have not been a success
yet.
(c) The efforts of USA to bring peace between Israel and the Palestinians have not been
successful yet.
(d) The deal gives a central strategic rule to USA in the Middle East.
62. Which of the following is true in relation to the stake of Palestine in the peace deal
between UAE and Israel?
(a) Israel has recognised Palestine as an Independent Nation.
(b) This can be an opportunity for the Palestine to establish diplomatic relations with Israel.
(c) The deal marks both a win and setback to the Israel-Palestine relations.
(d) A peace treaty would also be signed between Israel and Palestine.
63. Which of the following is not a direct impact of the peace deal in the Middle East region?
(a) The deal smoothens the UAE‘s international campaign to be seen as a beacon of
tolerance in the Middle East.
(b) It puts the UAE as leader in a regional power dynamics among neighbouring Gulf Arab
states.
(c) The deal gives Netanyahu a domestic boost at a time when Israel‘s coalition government
is in crisis due to coalition compulsions.
(d) The deal marks a historic day and a significant step towards peace in the Middle East.
64. The peace deal between Israel and UAE can also be seen as a great opportunity for India
in the Middle East region. Which of the following is not related to strategic goals of India
in the Middle East?
(a) India should revamp its defence and security relations with the UAE.
(b) India should move fast to capture the extended neighbourhood market before it comes
under the influence of China.
(c) India should ensure space for Iran in any future security deal in the region.
(d) None of the above.
65. Which of the following is correct?

(a) Israel does not have a Constitution.
(b) Israeli Constitution is like ordinary law.
(c) There is no Constitution but a Basic Law of 1950.
(d) Israel has a Constitution of 1967.
Page 19 of 46
66. Israel is a theocratic Jewish state but it follows legal pluralism. Accordingly it has:
(a) Jewish Courts to decide cases of all religious communities.
(b) Secular Courts will apply Uniform Civil Code in respect of all communities.
(c) Each religious community has its own Religious Court to deal with Personal law disputes.
(d) No distinction between Personal law and Public law.
Legal Reasoning
The COVID-19 pandemic has taken the entire world hostage in less than four months, and
the global economy has been hit the hardest with governments across the globe implementing
stringent policies including lockdown to control the coronavirus outbreak. The pandemic
today presents unprecedented challenges and impediments to businesses in conducting their
normal operations. The lockdown across the world has caused delays in the performance of
contracts and transactions. Now, the question that arises is whether the current situation can
enable parties to a contract to alter their obligations with non-compliance of terms neither
being regarded as a "default committed by any party" nor a "breach of contract"? There are
certain well-accepted practices for dealing with such extraordinary situations in commercial
transactions by the inclusion of force majeure & material adverse effect (MAE) clauses.
Determination of the types of circumstances so covered by the force majeure clause
contained in a contract is essential. Provisions of force majeure often cover natural disasters
like hurricanes, floods, and earthquakes as "acts of God." Other covered events may include
war, terrorism, civil disorder, fire, disease medical epidemics or by reasons of applicable laws
or regulations. Broadly, the Courts have interpreted the term "Force Majeure" as an event that
can neither be anticipated nor controlled by either of the contracting parties. A force majeure
clause applies in the context of ongoing contractual arrangements, whereas, an MAE or
material adverse change (MAC) clause applies to the allocation of risk in transactions before
their closure or completion. Pandemic and related consequences such as government action is
a type of event covered by a force majeure clause, however, its impact on the affected party's
ability to perform its contractual obligations may vary depending upon contractual terms. It is
common for force majeure clauses to specify the impact that the event or circumstances in
question must have, in order for the clause to be triggered. References may be made, for
example, to the event or circumstances having "prevented", "hindered" or "delayed"
performance. These terms require different levels of impact on performance before a party
can claim recourse to these clauses. In other words, the force majeure and MAC clauses act
as an exception to what would otherwise be treated as a breach of contract. Certain contracts
may state that, if a force majeure clause is applied, the contract may automatically be
terminated. On the other hand, some contracts may even state that the duty to fulfil the
contractual obligation may be suspended for a certain period of time and if the force majeure
event is not curbed or treated even after such time, then eventually the contract may be
terminated. Though there cannot be a one-size-fits-all solution to this question, and it depends
upon how the force majeure clause is worded in a specific contract; and in the absence of the
same, applicable laws related to the same will be required to be taken into consideration.
Page 20 of 46
[Excerpt from Business Today, by Ranjana Roy Gawai, April 17, 2020]
67. Based on the Author‘s argument in passage above, which of the following is correct?
a) Force Majeure Clauses, generally have a uniform impact on the performance of Contracts
in all the cases.
b) The Impact on the performance of Contracts by the usage of Force Majeure Clauses is
dependent upon the way such clauses have been constructed in a particular Contract.
c) Both Force Majeure and Material Adverse Change Clauses have similar impact on the
performance of Contracts.
68. Imagine, there is a domestic commercial Contract for supply of certain goods for certain
price between A and B. However, in pursuance of the same, both A and B forget to negotiate
and agree on the terms of a Force Majeure event and the Contractual document does not
contain the Force Majeure clause. In such a situation, what would be the fate of the Contract
in the event like that of COVID 19?
a) As the parties did not negotiate on the Force Majeure Clause, either of them cannot take an
exception to the Breach of Contract.
b) The parties can invoke the Material Adverse Change Clause.
c) In absence of such clauses in the Contract, the Courts may resort to the applicable law, i.e.,
the Indian Contract Act, 1872 to give relief to the parties.
69. In the same fact situation as mentioned above with a modification that there is a Force
Majeure Clause in the Contract between A and B, let us suppose, that B, who was to supply
goods to A on certain date and time, faced issues in relation to procurement of goods due to
mill strike and also because of rise in prices of goods. In this case, can B claim the
suspension of performance of Contract on the basis of the Force Majeure Clause?
a) Yes, B can, depending upon the way, the Force Majeure Clause is worded.
b) Such situation cannot be covered under Force Majeure as it is just a case of disappointed
expectations and hence B cannot invoke the clause. It is merely a case of commercial
hardship.
c) B can invoke the Force Majeure clause as the clause is too broad to cover such situations.
70. Typically, the MAE (Material Adverse Change) provision in an agreement contemplates
events which if they occur, or are likely occur, would have a ―materially adverse change or
effect on the assets, business, property, liabilities, financial condition, results, operations of
the target‖ or that ―affects the ability of the transacting parties to consummate the
transaction‖ or the ―validity or enforceability of the transacting parties to its rights and
remedies under the transaction documents‖. Which of the following sample clauses in a
contract resembles an MAE clause?
a) ―In the event either party is unable to perform its obligations under the terms of this
agreement because of Act of God, strikes, equipment of transmission failure or damage
reasonably beyond its control, such party shall not be liable for damages to the other for any
damages resulting from such failure to perform…‖
Page 21 of 46
b) ―Except with respect to payment obligations under this agreement, no party shall be liable
for, nor such party shall be considered in breach of this agreement due to, any failure to
perform its obligations under this agreement as a result of cause beyond its control, including
any earthquake, labour problem, unavailability of supplies…‖
c) Both of the above.
The issue of Obscenity has vexed the Courts in India and abroad for a long time now. The
intriguing question has always been the same, i.e., what should be the standards to qualify
something as obscene in the eyes of law? In the United Kingdom, way back in 1868, the
Court laid down the Hicklin test in Regina v. Hicklin (1868 L.R. 2 Q.B. 360), and held that:
―The test of Obscenity is whether the tendency of the matter charged as Obscenity is to
deprave and corrupt those whose minds are open to such immoral influences and into whose
hands a publication of this sort may fall.‖ Hicklin test postulated that a publication has to be
judged for obscenity based on isolated passages of a work considered out of context and
judged by their apparent influence on most susceptible readers, such as children or weak-
minded adults. However, this test was later rejected by most of the jurisdictions. There were
many judgments where it was stipulated by the Indian Courts that, Obscenity has to be
judged in the context of contemporary social mores, current socio-moral attitude of the
community and the prevalent norms of acceptability/ susceptibility of the community, in
relation to matters in issue. [For example, in Ranjit D. Udeshi v. State of Maharashtra AIR
1965 SC 881; Chandrakant Kalyandas Kakodar v. State of Maharashtra 1969 (2) SCC 687
etc.] These judgements indicated that the concept of Obscenity would change with the
passage of time and what might have been ―obscene‖ at one point of time would not be
considered as obscene at a later period. This came to be known as ―Community Standards
Test‖. In Bobby Art International & Ors. v. Om Pal Singh Hoon (1996) 4 SCC 1, the Court,
upholding the Community standards test held that, complete message and context of the
objectionable scene/firm/picture etc., needs to be examined in order to find out whether the
alleged material is obscene or not.
71. A, daily local newspaper called ‗Ramanand Bazar Patrika‘ having wide circulation in
Anandnagar published, on 1st July, 2019, an article with a picture of Boris Becker, a world
renowned Tennis player, posing nude with his dark-skinned fianc e by name Barbara Feltus,
a film actress, which was photographed by none other than her father. The article states that,
in an interview, both Boris Becker and Barbara Feltus spoke freely about their engagement,
their lives and future plans and the message they wanted to convey to the people at large, for
posing to such a photograph. Article picturises Boris Becker as a strident protester of the
pernicious practice of ―Apartheid‖. Further, it was stated that the purpose of the photograph
was also to signify that love champions over hatred. Will the alleged picture classify as an
Obscene Material in India?
a) No, according to the Hicklin Test, it will not classify as Obscene.
b) Yes, according to the Community Standards Test, the picture will classify as Obscene.
c) No, according to the Community Standards Test, the picture will not classify as Obscene.
d) Both (a) and (c).
Page 22 of 46
72. The difference between Hicklin Test and Community Standards Test is:
a) The former focuses on the susceptibility of the minds of individuals to get corrupted while
the later hinges upon the context, intended meaning and contemporaneous socio-cultural
environment of the society.
b) As per Hicklin Test, a nude picture of a women per se can be obscene while as per the
later, the picture should be suggestive of deprave mind and designed to excite sexual passion
in persons who are likely to see it.
c) The former considers Obscenity as a changing concept with changing times while the later
does not.
73. The issue of ‗Obscenity‘ is fundamentally related with which of the following?
a) Freedom of Religion of an individual.
b) Freedom of Speech and Expression of an individual.
c) Right to Privacy of an individual.
74. Consider the following situations. Choose the correct option as per the Hicklin‘s Test.
1. A Movie scene where there are rows of Jewish naked men and women, shown frontally,
being led into the Gas Chambers of Nazi Concentration Camp. Not only they are about to die
but they are stripped off their basic dignity in the last moments of their life.
2. The controversial movie scene of Phoolan Devi, the Bandit queen where she is paraded
naked and made to draw water from the well within the circle of a hundred men.
a) 1 is Obscene but 2 is not.

b) 2 is Obscene but 1 is not.
c) Both 1 and 2 are Obscene.
d) Neither 1 and 2 are Obscene.
75. An activist, while being semi-nude, allowed her body to be used as a canvas to paint on
by her two minor children who were properly clothed. She uploaded this video of hers on an
online platform with a message that she intended to normalise the female form for her
children and not allow distorted ideas about sexuality to pervade their mind. An advocate
who sees the video, registers a case of Obscenity against her. Is it a case of Obscenity as per
the Community Standards Test?
a) This is a pure case of Obscenity and she is spreading it.
b) This is a pure case of Obscenity as well as Child Pornography as her children were
exposed to her nudity.
c) This is not a case of Obscenity because as per the Community Standards Test the video
must not be seen in isolation but in the contextual set up of the message that the activist has
put on normalisation of a female‘s sexuality.
d) This is a case of Obscenity as per the Community Standards Test as the video was
blatantly obscene.
Page 23 of 46
On 7th May 2020, a major leakage of Styrene gas was reported from the plastics-
manufacturing plant 'LG Polymers' located on the outskirts of the Visakhapatnam city. The
accident took place when the cooling system of a polymers plant got clogged due to the
mismanagement of factory workers and resulted in turning the city into a gas chamber. The
gas which leaked was styrene gas, which is a ‗hazardous chemical‘ under Rule 2(e) plus
Entry 583 of Schedule I of the Manufacture, Storage and Import of Hazardous Chemical
Rules 1989.
Principle 1: Polluter Pays Principle
The 'Doctrine of Polluter Pays' is a well-established principle of environmental law, which

places an obligation of compensating the damage to the people who ought to reimburse it and
also have the capacity to disburse it. The principle explicitly affirms that the person who
damages or destructs the environment has the absolute obligation to bear the cost of
ameliorating the environment. In Enviro Legal Action v. Union of India case, the Apex Court
of India held that the polluter is legally responsible to reimburse the individual sufferers as
well as pay for the revitalization of the damaged environment.
Principle 2: Principle of Strict Liability
The principle of Strict Liability was established in the year 1868 in the case of Rylands v.
Fletcher, where the Court held that any person who uses his/her land in an 'unnatural manner'
and who keeps any 'hazardous substance' on such premises would be held liable under the
principle of strict liability for any 'damage' occurred on the 'escape' of such perilous
substance. However, the person is liable only when there is non-natural use of land; the
principle also restricts liability when the escape is due to an act of strangers, Act of God, for
example a natural calamity; due to the person injured or when it happens with the consent of
the person injured or with statutory authority.
Principle 3: Principle of Absolute Liability
The absolute liability is a stringent form of Strict Liability as it is devoid of any exceptions
that were mentioned under the earlier principle. for the first time in the case of M.C. Mehta v.
Union of India. This principle implies that whenever an enterprise is engaged in any
dangerous or hazardous activity that threatens the people working in the enterprise and those
living nearby, it owes an absolute and non-delegable duty to the community that no harm will
be caused. If harm is indeed caused, the enterprise will have to compensate for damages, and
can‘t use exceptions provided in the case of strict liability. The enterprise can‘t claim that the
harm has not been caused due to negligence (absence of due care) or that it had taken all
reasonable precautions.
76. Under which of the following principles, will the company LG Polymers be liable?
a) Polluter Pays Principle
b) Strict Liability
c) Absolute Liability
d) All of the above
Page 24 of 46
77. As per the Polluter Pays Principle, LG Polymers will be liable to pay:
a) Amount of Money for restoration of environment only.
b) Amount of Money for restoration of environment and compensation to Individuals who
suffered the loss.
c) Compensation to the victims.
78. A company ABC limited operates an industrial chemical plant in the city of Azadnagar.
Due to an earthquake on July 22, 2020, the valves of the reactors in the plant get damaged
due to which the operators could not properly transport the hazardous gas for chemical
vaporisation, resulting in the gas leakage. The gas leakage resulted in the death of 12 workers
of the plant and also some people living nearby the Plant. In this situation, in order to
decipher the liability of ABC Limited, choose the best option:
a) ABC Limited can be held liable under the principles of Strict and Absolute Liability and
Polluter pays principle as well.
b) ABC Limited can be held liable under the Polluter Pays Principle and the Principle of
Absolute Liability, but can be exempted under the rule of Strict Liability.
c) ABC Limited will not be held liable under any of the Principles.
d) ABC Limited will be held liable under Strict and Absolute Liability principles but the
Principle of ―Polluter Pays‖ will not be applicable to this situation.
79. The argument of LG Polymers that, they did not know that the Styrene Gas could leak:
a) is a strong argument and can reduce their liability under the Polluter Pays Principle.
b) is a strong argument and can reduce their liability under the Strict Liability Principle.
c) is a weak argument and will not help in reducing the liability of LG Polymers under any of
the principles.
d) is a weak argument but may help in reducing their liability under the Strict Liability
Principle.
80. XYZ is a company operating a Pesticide Factory in the city of Rampur. On one day, due
to the negligence of Factory staff, there is a leakage of the Pesticide gas as a result of which,
many pests and insects which feed on the plantation crops in the nearby farm are killed.
There is no harm caused to the people living nearby or the workers of the Pesticide Factory.
However, the leakage was so humungous that it reduced the quality of air in the city causing
breathing problems for the people living around in the area. In this case,
a) XYZ will be absolutely liable but not strictly liable.
b) XYZ will not be liable under the Strict and Absolute liability principles because the
leakage only killed the pests and insects.
c) XYZ‘s liability under the Strict and Absolute liability principles will depend upon the
inquiry as to whether the leaked pesticide gas was a hazardous substance/activity or chemical
or not and; XYZ will be liable under the Polluter Pays Principle.
d) XYZ will not be liable under the Polluter Pays Principle.
Page 25 of 46
Principle of Natural Justice is derived from the word „Jus Natural‟ of the Roman law and it is
closely related to Common law and moral principles but is not codified. It is a law of nature
which is not derived from any statute or constitution. The principle of Natural Justice is
adhered to by all the citizens of civilised State with Supreme importance. Natural justice
simply means to make a sensible and reasonable decision making procedure on a particular
issue. Sometimes, it doesn‘t matter what is the reasonable decision but in the end, what
matters is the procedure and who all are engaged in taking the reasonable decision. It is not
restricted within the concept of ‗fairness‘ it has different colours and shades which vary from
the context. Basically, natural justice consists of 3 rules.
The first one is “Hearing rule” which states that the person or party who is affected by the
decision made by the Panel of expert members should be given a fair opportunity to express
his point of view to defend himself. Secondly, “Bias rule‖ generally expresses that Panel of
expert should be free from bias while taking the decision. The decision should be given in a
free and fair manner which can fulfil the rule of natural justice. And thirdly, “Reasoned
Decision” which states that order, decision or judgement of the Court given by the Presiding
authorities with a valid and reasonable ground. The principles of Natural Justice have been
adopted and followed by the judiciary to protect public rights against the arbitrary decision
by the administrative authority. One can easily see that the rule of natural justice include the
concept of fairness: they stay alive and support to safeguard the fair dealing.
Source: Excerpt taken from blog.ipleaders.in (Dated - 12th June, 2019)
81. ―Nemo Judex in causa sua‖ or the principle that ‗No one can be a judge in his own case‘,
relates to which of the following rule of the Natural Justice?
(a) Bias rule

(b) Reasoned decision rule
(c) Hearing rule
82. Mr. X is a Public Servant, employed in a PSU and Mrs Y who is the wife of Mr. X is
also an employee of the same PSU. Ms A files a complaint against Mr. X for sexual
harassment at workplace before the ICC (Internal Complaints Committee), which is
headed by Mrs Y. After completing her inquiry she held that Mr. X is guilty and
recommended disciplinary proceedings against him. Now, on what grounds Mr. X may
challenge her findings?
(a) Mrs Y is an employee of the same institution and the inquiry should have been conducted
by a person outside the institution.
(b) The complaint was filed by a female employee, so the inquiry must have been conducted
by a male employee.
(c) Mrs Y is the wife of Mr. X and she holds a personal bias in the case, so the inquiry should
not have been conducted by her.
(d) Mr. X being the accused should have conducted the inquiry himself.
Page 26 of 46
83. Mr. A is a judge and he is also the landlord of Mr. B, who resides in an apartment owned
by Mr. A. Due to non-payment of rent for 3 consecutive months, Mr. A served an
eviction notice to Mr. B. Now, choose the most appropriate option amongst the
following.
(a) Being a judge himself, Mr. A cannot issue such notice of eviction.
(b) Mr. A can issue such notice because it is his duty as a Judge, apart from being a landlord.
(c) Such notice is illegal as Mr. B was not given an opportunity to present his case.
(d) Mr. A issued such notice in his personal capacity as a landlord and not being a judge.
84. Which of the following is not in violation of the principles of Natural justice?
(a) Withholding of an increment of a public servant without giving him an opportunity to

defend.
(b) Non-renewal of a contract of employment of an employee after the period of contract is
over.
(c) Initiating a departmental inquiry against a public servant, without giving him an
opportunity to submit representation during such inquiry.
85. On the basis of your understanding about Natural Justice in the passage above, state
which of the following is true:
a) Adherence to the reasoned decision rule is not required if other two rules are
complied with.
b) Compliance of bias rule itself rejects the need of the hearing and the reasoned
decision rule.
c) Principle of Natural Justice is incomplete without the compliance of any of its rules.
d) The Reasoned Decision rule is a substitute for the bias rule.
Tension prevailed in the Jawahar area in Palghar district after three Mumbai residents,
travelling in a Ford Ecosport to Silvassa, were allegedly lynched late on Thursday night. The
Kasa police said the incident occurred near Gadakchinchale village under their jurisdiction.
―Information received by us indicates that the three occupants of the SUV hailed form
Kandivali in Mumbai and were going to attend a funeral in Silvassa,‖ Superintendent of
Police Gaurav Singh, Palghar police said. A large mob of villagers surrounded the car within
a matter of minutes and started attacking it with sticks, irons rods and their bare hands,
leading to the death of all three occupants. ―One of our patrolling vehicles later spotted the
severely injured trio lying on the road and stopped to find out the matter. However, our team
was also attacked by the mob and the vehicle pelted with stones. Our personnel had to flee
and were unable to rescue to the victims,‖ an officer with the Kasa police said. A wireless
alert was sent out later apprising all police stations and units of the incident following which
reinforcements were sent to the village and a combing operation was undertaken. ―Prima
Page 27 of 46
facie information indicates that the trio were mistaken for thieves and attacked. The villagers
were on edge due to the ongoing lockdown and unavailability of essential supplies. For the
past few days, several rumours have been doing the rounds on social media about thieves and
dacoits targetting villages on the highway. As a result, villagers have been patrolling the
highway and stopping late night travellers on suspicion,‖ the officer said.
Source: Excerpt from The Hindu, written by Alok Deshpande (22/04/2020)
86. Which of the following statements given below justifies criminalisation of Mob
Lynching?
(a) In a democracy the actual power rests with the people and their actions cannot be
penalised by the state.
(b) There is no law in India which specifically prohibits mob lynching and therefore it is a
justified act of the people.
(c) It is impossible to punish the wrongdoer in case of Mob Lynching.
(d) Violence cannot be a tool to implement the will of the majority and such actions are
failure of the state.
87. Which of the following statement justifies the criminalisation of mob lynching as a
distinct offence apart from ‗Murder‘?
(a) The offence of Murder is committed by a single individual or a group but mob lynching
involves a large group of individuals.
(b) When violence is committed by a mob it creates a situation of terror and anarchy having
potential to disturb the public peace for a longer period.
(c) Mob lynching is an offence which supports the idea of ‗might is right‘, and cannot be
accepted in a democratic society.
88. The above passage states about the existence of rumours in the area regarding the thieves
and dacoits robbing the villagers or committing child lifting. In the light of this
proposition which if the following statement is correct?
(a) The villagers should not be punished as there was a genuine mistake on their part.
(b) The villagers should be punished as they do not have any right to punish any person
unless he is an offender.
(c) The villagers should be punished as no individual in the country is entitled to take law
in his own hand and punish the wrongdoer.
(d) The villagers should not be punished as they have the right of private defence against
such incidents under which they can even kill a person.
Page 28 of 46
89. In the light of the above passage which of the following incidents of mob violence would
be justified?
(a) A group of people committing violence against people who are selling meat of an animal
considered to be sacred under their religious beliefs.
(b) The residents of a boy‘s hostel caught a drug paddler selling drugs in their hostel and
killed him by beating.
(c) The villagers injured a woman by pelting stone on her considering her to be witch.
90. Assertion (A): Mob Lynching can be justified only in circumstances where the religious
sentiments or feelings of a large group of people is associated.
Reason (R): Religious sentiments and feelings are of paramount consideration for the state
and should not be interfered with.
(a) Both (A) and (R) are correct

(b) (A) is correct but (R) is incorrect
(c) Both (A) and (R) are incorrect
(d) (A) is incorrect but (R) is correct.
The bench of Dr DY Chandrachud and MR Shah, JJ has refused to transfer to CBI the
criminal cases lodged against Republic TV Editor in-Chief Arnab Goswami for alleged
defamatory news show telecast on April 21 in connection with the Palghar mob-lynching
case. It also quashed all FIRs against Arnab Goswami except one which was filed in Nagpur
and which has been transferred to Mumbai via order dated 24.04.2020.
[Excerpt from SCC Online Blog, May 19, 2020]
Delivering the verdict, Justice Chandrachud said, ― Article 32 of the Constitution constitutes
recognition of the constitutional duty entrusted to this Court to protect the fundamental rights
of citizens. The exercise of journalistic freedom lies at the core of speech and expression
protected by Article 19(1)(a). The petitioner is a media journalist. The airing of views on
television shows which he hosts is in the exercise of his fundamental right to speech and
expression under Article 19(1)(a). India‟s freedoms will rest safe as long as journalists can
speak truth to power without being chilled by a threat of reprisal…Free citizens cannot exist
when the news media is chained to adhere to one position. Yuval Noah Harari has put
it succinctly in his recent book titled “21 Lessons for the 21st Century”: “Questions you
cannot answer are usually far better for you than answers you cannot question.”
[Excerpt from Arnab Ranjan Goswami vs Union Of India on 19 May, 2020]
Page 29 of 46
91. The above passage mentions about the Journalist‘s request to transfer the case to the CBI
(Central Bureau of Investigation) for investigation. What could be the appropriate reason
for such request?
(a) The CBI is a central investigating agency and conducts more scientific investigation.
(b) Where State government is an interested party, the investigation conducted by the state
police, may be biased.
(c) The FIRs relate to an offence of defamation of the President of a national party, so the
matter should be investigated by the CBI.
92. The above passage quotes the observation of the Court in relation to freedom of speech
and expression as, ―Questions you cannot answer are better than questions you cannot
question.‖ Now, based on such observation, chose the most appropriate option which
describes the scope of such questions.
(a) The term ―questions‖ mentioned are not subject to limitations imposed upon the Freedom
of Speech and Expression.
(b) Those question are limited to the information warranted by the person.
(c) The court is referring to the right to information through the above quote.
(d) The questions are also subject to limitations imposed upon the Freedom of Speech and
Expression.
93. It is an established principle of law that the offence of defamation (harming the
reputation) has many exceptions and the imputation of truth is one of those, but the
accused must prove that such imputation was true and also for the public good. In the
light of this statement which of the following questions/statements are not defamatory?
(a) An article published in a newspaper about the unaccounted property of a public servant in
the form of a questionnaire.
(b) A question to a female actress about her sexual relationship with a married man.
(c) A question to a public servant about his extramarital relationship with a colleague.
(d) An Article published in a magazine stating a female politician as ‗B grade‘ actress.
94. In the above passage, the Court ordered for the merging of different FIRs into one and
the investigation to be conducted at Mumbai. What is the reason behind such order?
(a) Multiple FIRs mean multiple investigations and the same might cause hardships to the
accused.
(b) The first FIR was registered at Mumbai and the investigation should be conducted at
Mumbai.
(c) The accused resides at Mumbai and the investigation should be conducted only at
Mumbai.
(d) Multiple FIRs are frivolous and there is only one cause of action.
Page 30 of 46
95. Defamation is punishable:
(a) Both as a Civil wrong as well as a Crime.
(b) Only as a Civil wrong.
(c) Only as a Criminal wrong.
Common intention implies a pre-arranged plan and acting in concert pursuant to the plan.
Common intention comes into being prior to the commission of the act, which need not be a
long gap. To bring common intention into effect a pre-concert is not necessarily be proved,
but it may well develop on the spot as between a number of persons and could be inferred
from facts and circumstances of each case. For example A and B caught hold of C where
only B stabbed C with a knife but A is also liable for murder as there was a pre concerted
action. In the case Pandurang v. State of Hyderabad, Supreme court emphasized on this point
that prior concert need not be something always very much prior to the incident, but could
well be something that may develop on the spot, on the spur of the moment.
Common Intention and Similar Intention
Common intention does not mean similar intention of several persons. To constitute common
intention it is necessary that the intention of each one of them be known to the rest of them
and shared by them. In the case of Dukhmochan Pandey v. State of Bihar, the Supreme
Court, held that: “Common intention which developed at the spur of the moment is different
from the similar intention actuated a number of person at the same time….the distinction
between a common intention and similar intention may be fine, but is nonetheless a real one
and if overlooked, may lead to miscarriage of justice….” The mere presence of accused
together is not sufficient to hold that they shared the common intention to commit the offence
in question. It is necessary that the intention of each one of ‗several persons‘ be known to
each other for constituting common intention.
96. A gang of six members went to a bank, armed with weapons to commit a heist. While
five of the gang members went inside the bank, Mr. A (the sixth member) waited outside
the bank to alert them on any threat. During the heist one of the gang members fired a
gun at the branch manager, as a result he died. All five escaped but Mr. A was caught
and arrested. Now, choose the most appropriate option as per the principle stated in the
above passage.
(a) Mr. A is not liable for murder as he was outside the bank and there was no common
intention.
(b) Mr. A along with all other members of the gang are liable for murder as there was
common intention.
(c) Only that person is liable for murder who actually fired the gun.
(d) Mr. A is liable only for the heist and no other offence.
Page 31 of 46
97. Raman and Raghav were riding on a motorcycle on a busy street, suddenly Aman
(another biker) bumped into their bike. A heated argument started between the three of
them. While Raghav started abusing Aman, Raman hit Aman with an iron rod lying on
the road and as a consequence he died. Now, chose the correct option.
(a) Both Raman and Raghav are liable for murder as there was a common intention
developed on the spot.
(b) Raghav is not liable for murder as there was no common intention to kill Aman.
(c) No one is liable as Aman was a wrongdoer himself and he started the fight.
(d) Only Raghav is liable for murder as he started abusing Aman.
98. After reading the passage which of the following is not correct in relation to the
difference between Common and Similar intention?
(a) Similar intention is developed prior to the commission of offence but the common
intention is developed only at the time of commission of offence.
(b) Under Common intention each of the offender is equally liable for the offence but under
similar intention each of the offender is differently liable.
(c) In order to determine the existence of Similar or Common intention, one must analyse the
fact and circumstances of each case.
(d) The boundary between Similar and Common intention is very fine and it may sometime
overlap.
99. Mr. X and Mr. Y entered into a house at night to commit theft, while committing theft
Mr. Y committed sexual assault on a minor girl of aged 11 years. Identify for which of
the following offences Mr. X is liable for.
(a) Both Theft and Sexual Assault as there was a Common intention.
(b) Only Theft as there was a Similar intention.
(c) Only Theft as Mr. X had a different intention from Y.
(d) He would not be liable for any offence.
100. Which of the following statements is correct in relation to the difference between
common intention and similar intention?
(a) The intention of the accused and co-accused can be inferred from the facts and
circumstances of each case.
(b) Under common intention, it is considered that all the accused have jointly committed the
offence themselves and are jointly liable.
(c) Each accused is liable for the offence he has actually committed, if the common intention
cannot be proved.
Article 20(1) of the Indian Constitution prohibits Ex Post Facto laws. The expression Ex Post
Facto Law means a law, which imposes penalties or convictions on the acts already done and
increases the penalty for such acts. In other words, Ex Post Facto Law, imposes penalties
retrospectively. For example, The Dowry Prohibition Act, 1961 came into force from
Page 32 of 46
20.5.1961. A person guilty of accepting dowry is punishable under the Act after 20.5.1961
and not before 20.5.1961.
Ex post facto laws are of three kinds as follows:(a) A law which declared some act or
omission as an offence for the first time after the completion of that act or omission. (b) A
law which enhances the punishment or penalty for an offence subsequent to the commission
of that offence. (c) A law which prescribes a new and different procedure for the prosecution
of an offence subsequent to the commission of that offence.
Clause (1) of Art. 20 provides protection only in respect of the above first two categories of
expost facto laws i.e. laws which declare acts as offences subsequent to the commission to
those acts and laws which enhance the penalty subsequently.
Article 20(1) provides: No person shall be convicted of any offence except for violation of a
law in force at the time of the commission of the act charged as an offence, nor be subjected
to a penalty greater than that which might have been inflicted under the law in force at the
time of the commission of the offence. The first part of clause (1) provides that no person shall
be convicted of any offence except for violation of law in force at the time of the commission
of the act charged as an offence. The second part of clause (1) protects a person form a
penalty greater than that which he might have been subjected to at the time of the
commission of the offence.
101. The Parliament of India legislated the Sexual Harassment at Workplace Act, in the
year 2013 and simultaneously some new offences were also added to the Indian Penal
Code, 1860. Mr. A is an employee of an institution, against whom departmental enquiry
has been initiated for committing sexual harassment of a female colleague in the year
2012. Now, choose the correct option.
(a) Such inquiry is valid as per Article 20 (1) of the Constitution as the complaint was made
after the act came into force.
(b) Article 20 (1) will not be applicable as the matter does not relate to an offence.
(c) As the Act was passed in the year 2013, any inquiry under such Act is invalid.
(d) Only inquiry may be conducted but no penal action can be taken against him after such
inquiry.
102. Article 20 (1) would not affect which of the following acts of the legislature?
(a) Act of the legislature enhancing the term of imprisonment.

(b) Act of the legislature enhancing the amount of fine.
(c) Act of the legislature changing the punishment of death to life imprisonment.
(d) Act of legislature changing the nature of imprisonment from simple to rigorous.
Page 33 of 46
103. Mr. A is a student of Law, aged 19 years. He is socially active and expresses his
opinion on every social and political event of the nation through social media platforms.
In one of his blog, he severely criticised the policy of a state government of changing
names of cities and towns. He also stated that the government is biased towards a
particular religion. The said blog was posted on 19 th April, 2020 and subsequently, an
amendment was made to Indian Penal Code whereby ‗Hate Speech‘ was made a distinct
offence and punishment was prescribed. An action was brought against him under the
said provision for the blog. Now, choose the most appropriate option amongst the
following
(a) Mr. A may be liable for the offence of Hate speech as the blog was not removed even
after the amendment.
(b) Mr. A may be liable for the offence of Hate speech as Article 20 (1) does not cover such
areas.
(c) Mr. A may not be liable for the offence because the act was done before the amendment.
(d) Mr. A may not be liable for the offence as his blog was innocent and a fair criticism.
104. Considering the fact situations given in the above question, the Parliament passes a
legislation in September 2020, whereby an amendment is made to the Juvenile Act and
now a person below the age of 20 would be a Juvenile and special procedure would be
followed for his trial. Choose the most appropriate option amongst the following
(a) Mr. A would not be considered as juvenile as it is prohibited under the scheme of Article
20 (1).
(b) Mr. A would not be considered as juvenile because the amendment came after he
committed the offence.
(c) Mr. A would be considered a Juvenile and tried under the new procedure.
105. Considering the fact situation in the third question to this passage, the Parliament
passes a legislation for the Probation of Offenders, under which any offender below the
age of 21 will not serve the sentence of imprisonment in a prison, instead he will serve
the sentence in a probation house. Now, choose the most appropriate option.
(a) Mr. A will get the benefit of Probation of Offenders Act.
(b) Mr. A will not get the benefit of Probation of Offenders act as it is prohibited by Article
20 (1) of the Constitution.
(c) It is discretion of Mr. A to decide whether he wants such benefit or not.
Logical Reasoning
Some readers wondered whether my reading of the crisis in the news media is about
journalism or about the news industry. Though the fortunes of the news industry have a
bearing on journalism, there is, indeed, a difference between looking at issues that govern
journalism and the factors that contribute to the financial stress of the media industry. Over
the last few years, I have been discussing the impact of digitalisation on journalism. The
pandemic has accelerated the process of digital transformation of the news media. Therefore,
Page 34 of 46
these issues need close scrutiny. One of the defining elements of analog journalism was the
way two crucial functions of journalism — bearing witness and making sense —
complemented each other and helped people make informed choices. When I talk about the
strength of analog, I am neither romanticising the past nor am I a Luddite. Most importantly,
I do not believe in nostalgia. Many scholars have established ―how rose-coloured glasses
always leads to an unfair distortion — looking back on the best of the past while comparing it
to the worst of the present.‖ Hence, when I talk about the digital information news
environment, I am talking about how there needs to be a conducive atmosphere for credible
information to resonate with the people. Literature on misinformation, disinformation and
malinformation reveals a new distinction in the minds of the citizens. Editors and journalists
have to contend with a new breed of sceptics. These are the people who trust social media
forwards more than evidence-based, data-driven journalism. Their confirmation bias flows
from encrypted social media platforms that are full of conspiracy theories.
[Excerpt from an Article by A.S. Panneerselvan, The Hindu, dated August 10, 2020]
106. Which of the following conveys the main idea expressed in the passage?
a) Those who subscribe to newspapers are sceptics.
b) Those who subscribe to newspapers and news channels often contribute in distortion of the
truth.
c) Social media journalism distorts the truth.
107. In this line, ―Hence, when I talk about the digital information news environment, I am
talking about how there needs to be a conducive atmosphere for credible information to
resonate with the people‖ the Author assumes that:
a) The Digital news is neither evidence based nor data driven.
b) The Digital journalism does not help people in making informed choices.
c) Both a) and b)
d) The impact of Digital journalism has created an informed platform of journalism.
108. Which of the following strengthens the Author‘s argument?

a) Conspiracy theories have become an alternative truth.
b) The Pandemic is the only reason behind the dependence of people on Social media
journalism.
c) The News industry is witnessing a tremendous change.
109. What does the Author indicate when he quotes that ―Rose coloured glasses always lead
to unfair distortion‖?
a) Digital Journalism is twisted.
b) Author means to say that he does not have any disproportionate bias for analog journalism.
c) Rosy picture of every news cannot be created.
Page 35 of 46
110. The Author has severely targeted and criticized which one of the following factors of
Digital Journalism?
a) Social Outreach
b) Credibility of Information
c) Lack of Information
In 1985, Mikhail Gorbachev, launched an ill-fated anti-alcohol campaign in the then Soviet
Union. The anti-alcohol campaign had some beneficial public health consequences: Crime
fell and life expectancy rose. But the campaign was a political and economic disaster.
Gorbachev forgot that the addiction of the state to alcohol revenue was even more incurable
than the addiction of some citizens to alcohol itself. The budgetary losses created an
economic crisis. Historians suspect that more than the loss of the Soviet Empire, it was this
campaign that delegitimised Gorbachev. An old Soviet joke went like this: A disaffected and
angry citizen, fed up of standing in lines for vodka, decided to go assassinate Gorbachev. He
soon came back and ruefully reported that the lines to assassinate Gorbachev were even
longer than the lines for Vodka. As the lockdown eased in India, and social distancing went
for a toss at alcohol outlets, we were reminded of how difficult an issue alcohol is to
rationally discuss in India. The stampede was caused by the ineptness with which the opening
was handled in most cities. Alcohol has also migrated from being a question of personal
freedom and choice to an issue in broader cultural wars, an odd site on which we measure
progressivism in India. It is also a window on how liberalism has been misunderstood.
Liberals should, rightly, be suspicious of prohibition on moral and practical grounds.
Government grossly exceeds its legitimate power when it interferes with the rights of
individuals to lead their lives as they please, and fashion their selves after their own ideals,
interests and preferences. And certainly, moralism or puritanism on alcohol cannot be the
basis of state policy. That moralism has no basis, and it violates the dignity and freedom of
individuals.
[Excerpt from an Opinion by Bhanu Pratap Mehta, The Indian Express, May 7, 2020]
111. In the above passage, the author uses a/an__________ to strengthen his argument.
a) Metaphor
b) Analogy
c) Personification
d) None of the above
112. Which of the following can be inferred from the passage above?
a) State must not interfere at all with the individual‘s right to drink.
b) Liberalism has always been misunderstood.
c) It is very difficult to discuss any issue relating to personal freedom of individuals with
rationality in India.
113. Which of the following statements weakens the argument that Moralism on Alcohol
cannot be the basis of State Policy?
a) The State should not interfere with people‘s right to drink; but there will be a backlash if
drinking takes forms that inflict great social harms.
Page 36 of 46
b) Freedom should not be divorced from Moderation.
c) The State should not interfere in matters of sexuality or intimacy. But norms of freedom
will impose serious costs and will not survive if the expressions of sexuality are consistently
degrading or violent, as we have seen in the locker room scandals.
114. Which of the following is true as per the passage above?

a) Liberals should not be concerned about prohibition on Alcohol at all.
b) Moralism should be based on justified ideals.
c) Moralism must not be the basis of any State action.
115. According to the passage, which of the following could be part of State‘s policy to
regulate Alcohol use in India?
I. Ban on Alcohol shops.
II. Education on Intelligent Drinking.
III. Regulating Outlet density of Alcohol shops
IV. Community Intervention Policy
a) I, II and III
b) II and IV
c) II, III and IV
d) I, II, III and IV.
Don‘t miss the cloud behind the silver lining. The Class XII CBSE pass result has soared to
an all-time high of 88.8%. The number of students scoring 95% and above has more than
doubled. If only these higher marks were a reflection of students getting more skilled and
more competitive. Instead, the odds are they simply mirror an assessment scheme relaxed to
compensate students for the many disruptions originating in the pandemic. The goal of
reducing student stress levels during this turbulent time is excellent and laudable. But it is a
fallacy that high marks can accomplish this by themselves. The real stressor, after all, is
shortage of opportunities. When every bout of grade inflation raises cut-offs for higher
education even higher, it is no succour. That India‘s Gross Enrolment Ratio is only 27%
compared to Indonesia‘s 36%, Thailand‘s 49% and the US‘s 88% is just one measure of the
toll taken by our failure to build adequate colleges and universities. Licence raj continues to
suppress autonomy and expansion in this sector. For example, a new national education
policy is reportedly mulling at least 20% of students being able to attend private higher
educational institutions through freeships and another 30% through scholarships, besides fee
caps. On top of the stasis already wreaked by reservations, this would be disastrous.
Browbeating the private sector to make up for public sector deficiencies is counterproductive.
As the pandemic has underlined the key role of good government services in healthcare, so
too is raising the standard of publicly funded schools and universities essential. What the
students need is an ecosystem where government institutions deliver quality education and
private options are plentiful. It is better prospects alone that will best alleviate students‘
stress. Meanwhile, crudely chopping syllabi will only worsen their disorientation and should
be reconsidered.
[TOI Edit, Times of India Editorials, Dated July 15, 2020].
Page 37 of 46
116. What is the ‗cloud behind the silver lining‘ in the passage above?
a) The Pandemic which is impacting the current education system.
b) That, the Governmental educational institutions are not able to deliver quality education.
c) Scoring Higher marks or percentage in school education does not guarantee skilled and
competitive candidature of the student.
d) License Raj has negatively impacted Higher education.
117. Which of the following statements weakens the argument that chopping the syllabi in
the times of Pandemic will only worsen a student‘s disorientation and hence should be
reconsidered?
a) It does not matter even if syllabi is chopped. The students who don‘t want to study will
even not study in the minimal syllabi structure even during the pandemic.
b) Students don‘t care about syllabi. They study only for marks and grades.
c) Reduced syllabi will help in achieving the teaching-learning targets in due time and hence
won‘t put pressure on students.
118. The number of students scoring 95% and above in XII class board exams has more than
doubled. Which of the following statements serves as a plausible explanation for the same?
a) Students have started studying with sincerity and concentration.
b) Evaluation of answer scripts has become liberal.
c) Question papers these days are easier to solve.
119. For developing a student friendly ecosystem of education, which of the following serve
as need of the hour, as per the Author?
I. Increasing the Syllabi in School education.
II. Building adequate number of public colleges and universities.
III. Eliminating Reservation in admissions to Higher education system.
IV. Creating a quality based education system
a) Only I and II.

b) Only I, II and IV.
c) Only III.
d) Only II and IV.
a) Scoring High marks in XII class can help in reducing stress amongst students in the times
of Pandemic.
b) High Cut-off of marks also contribute in reducing opportunities for the students.
c) Private institutions should not be regulated.
d) License Raj should be done away with.
Page 38 of 46
If anything, the novel coronavirus disease (COVID-19) pandemic has taught us to rethink our
lifestyles and question our need to travel to work every day. After all, in the age of internet,
zoom meetings and webinars can be virtually conducted and physical distancing is possible.
A large nature of work in cities is of tertiary nature, a major part of which can be done from
home. This can affect the way offices function and reduce the need for all employees to be
physically present every day. Information Technology companies are already contemplating a
move of making many of its employees work from home and make this a ‗new normal‘. If
more firms follow suit, the need for huge office buildings and central business districts would
change. Apartments cannot get bigger at the same rate, and people may not have the space or
atmosphere to work from home. This would mean that more people would opt for co-working
spaces close to their homes. This could be a game changer, for it would provide the cities to
better distribute their activities throughout the spaces and rid themselves of the idea of
zoning. Only a handful of professionals are allowed to function from residential zones,
including doctors, lawyers, architects, etc. This needs serious rethinking. Many more
professions of similar nature that do not disturb surrounding residence and have no
requirements of special services should be added to the list. This new work culture would
bring associated demand for food joints, cafés, stationary shops, etc.
[Excerpt from „Down to Earth‟ Magazine, Blog authored by Sugeet Grover, August 17,
2020]
121. Which of the following is the main idea behind the passage?
a) Work from home is the new normal.
b) Work from home will result in shutting down of big buildings.
c) Work from home culture will result in systematization of City planning and development.
d) More professionals should be included in the ‗work from home‘ list.
a) The ‗work from home‘ culture is a no-chaos culture.
b) There is lack of distribution of activities in the ‗work from home‘ scenario.
c) The routine culture as opposed to ‗work from home‘ does not benefit the society in any
way.
123. Which of the following can be associated benefits of the new culture ?
a) It will save commute time.
b) The city‘s land can be used more efficiently
c) Better distribution of activities would be associated with safer streets and public spaces as
they would not go unused and hence have less likelihood of being used for unlawful
activities.
Page 39 of 46
124. Consider the following statement: ―Work from home culture is a sustainable method of
business and should be extended to all professions.‖
Which of the following weakens the Author‘s argument?
a) Not every type of profession fits in the ‗work from home‘ culture as different professions
have different requirements and need different environmental and work space settings.
b) ‗Work from home‘ impacts a person‘s mental health.
c) Both a) and b)
d) Neither a) nor b)
125. Which of the following weakens the author‘s argument that ‗Work from home‘ culture
will enable better city planning?
a) Development of Co-working spaces will further create chaos in terms of land planning.
b) City planning is not only about reducing spaces.
c) Work from home will also reduce the flow of money in the economy.
Following is an array of questions to test your reasoning ability in different situations.

Answer each of them according to the question asked in each of them respectively:
126. If highways were restricted to cars and only those trucks with capacity of less than 8
tons, most of the truck traffic would be forced to run outside highways. Such a reduction in
the amount of truck traffic would reduce the risk of collisions on highways. The conclusion
drawn in the first sentence depends on which of the following assumptions?
a) The roads outside highway would be as convenient as highway for most drivers of trucks..
b) Most of the roads outside highways are not ready to handle truck traffic.
c) Most trucks that are currently running in highway have a capacity of more than 8 tons.
d) Cars are at greater risk of being involved in collisions than are trucks.
127. Read the debate between Harry and Potter and identify the main issue:
Harry: Within democracies, voters are entitled to know the down-side to a candidate and the
other side is obviously well placed to voice it. To stifle one‘s ability to voice negative things
about a candidate would be to obstruct democracy and limit free speech.
Potter: Negative advertisements produce the politics of the personal, since an easiest advert is
an attack-advert which focuses on the personality or personal qualities of one‘s opponent. A
negative advertisement is one that focuses upon a rival product, in this case, a rival election
candidate or party in order to point its flaws and to persuade the public to not vote for it.
a) Whether negative advertisement strengthens democratic governance?

b) Whether the practice of negative advertisements is good for democracy and politics?
c) Whether negative advertising needs to be banned?
d) Whether negative advertising produces the politics of the personal?
Page 40 of 46
128. Which alternative applies to the following Statement and Assumption?
Statement: Go by Aeroplane to reach Delhi from Chennai quickly.
Assumptions:
I. Chennai and Delhi are connected by Air service.
II. There is no other means to commute from Chennai to Delhi.
III. The Air distance between Delhi and Chennai is less.
a) Only I is implicit.
b) Only I and II are implicit.
c) Only I and III are implicit.
d) Only II is implicit.
129. Ananya and Krishna can speak and follow English. Bulbul can write and speak Hindi as
Archana does. Archana talks with Ananya also in Bengali. Krishna cannot follow Bengali.
Bulbul talks with Ananya in Hindi. Who can speak and follow English, Hindi and Bengali?
a) Archana
b) Bulbul
c) Krishna
d) Ananya
130. If ‗367‘ means ‗I am happy‘; ‗748‘ means ‗you are sad‘ and ‗469‘ means ‗happy and
sad‘ in a given code, then which of the following represents ‗and‘ in the code?
a) 3
b) 6
c) 9
d) 4
One of the biggest casualties of the Covid-19 pandemic and the resultant lockdown has been
institutionalised education. Schools have been shut to prevent the spread of the virus and this
has given way to online classrooms, a very new concept in India even for the most
sophisticated schools. It is commendable how easily some educational institutions have
moved to virtual classrooms, all thanks to tools such as Zoom, Google Hangouts
and Microsoft Teams. But there are some still struggling to get online. The online classes,
whatever the enabling technology, is only as good as the teachers and the ability of the
students to grasp the new teaching technique. One of the teachers felt students are actually
more responsive and active in online classrooms, compared to when they are in physical
ones. ―This could be because this is a new concept and they are excited to explore it with the
teachers. They also don‟t get distracted by their classmates, which frequently happens in a
regular class.‖ Teachers do find the absence of a blackboard a disadvantage and network
connectivity a constant problem. ―We miss the clarity that a blackboard gives us, we are kind
of making do with the virtual whiteboard on Zoom.‖ Shweta Kawatra, a parent who teaches in
a New Delhi school, highlights that many students have not been able to take advantage of
the virtual platform because they do not have a suitable device at home or lack a good
internet connection. ―It has its own share of disadvantages too. Too much screen time can be
perilous for health. Prolonged online sessions can be overwhelming and may lead to
problems related to vision, body posture and sleep disorder,‖ Kawatra adds.
Page 41 of 46
[Excerpt from an Article by Sneha Saha, The Indian Express, dated April 18, 2020]
131. What is the Central Idea of the passage above?

a) Institutionalised education was much better than the current online education system.
b) Institutionalized education cannot be replaced by any other system of education.
c) Virtual Classroom teaching is a sustainable approach to education in modern times.
132. Which of the following statements cannot be inferred from the passage above?
a) Virtual Classroom teaching is a sustainable approach to education.
b) Virtual Classroom teaching causes health problems.
c) Institutionalized education system has its advantages.
133. Which of the following is an implicit assumption in the observation that students are
more active and responsive in online classrooms as compared to that in physical ones?
I. Students are not serious while studying in physical classrooms.
II. Online classrooms inculcate more interest in students towards studies than the physical
classrooms.
III. Students don‘t like physical classrooms at all.
IV. Students sleep in physical classrooms.
a) Only I and II
b) Only III and IV
c) I and IV
d) I, II, III and IV.
a) There is a divide in opinions of people on the merits and demerits of Online education.
b) Online education system is going to replace the Institutionalized education system.
c) The institutionalized education system is not at all perilous for health of students.
135. Consider this statement: ‗Virtual education provides for various online seminars,
opportunities to interact with learned experts, pro-bono education classes etc., for students
across India irrespective of their economic status and background.‘
Which of the following statements weakens the statement?

I. Many students in remote areas do not have access to internet facilities.
II. Many students in rural areas do not have devices to take advantage of the Virtual
classrooms.
III. Online Seminars and pro bono classes are not interesting and do not cater to the needs of
students across India.
Page 42 of 46
IV. The mobile phone data packages to access such heavy online contents are not enough and
participation in such events involves costly data packages which is dependent upon the
economic status of those students.
a) Only I, II, III

b) Only III and IV
c) Only I, II and IV.
d) Only I and II.
Quantitative Techniques
The following data presents the cases of Japanese Encephalitis in five states of India.
60 57
50 45
40
29
30
21
20
13
10
0
Odisha West Bengal Chhattisgarh Jharkhand Andhra
Pradesh
No. of persons affected by Japanese encephalitis (in thousands)
Ratio of males to females

States
Male : Female
Odisha 12 : 7
West Bengal 6:3
Chhattisgarh 5:2
Jharkhand 15 : 14
Andhra Pradesh 7:6
136. Number of females affected by Japanese encephalitis in West Bengal are what
percentage (up to 1 decimal) more or less than that of females affected in Odisha?
a) 28.6 % less
b) 29.7 % more
c) 26.8 % less
d) 25.8 % more
Page 43 of 46
137. What is the average number of males affected by Japanese encephalitis in all the five
states?
a) 9,000
b) 13,500
c) 18,400
d) 20,600
138. If the total number of males affected by Japanese Encephalitis in other states are 87 %
more than the average number of males in Odisha, West Bengal, Chhattisgarh and
Jharkhand, the total number of males affected in India is:
a) 44,880
b) 1,40,880
c) 1,47,880
d) 68,880
139. By what percentage is the average of males in Chhattisgarh, Jharkhand and Andhra
Pradesh together more or less than the average of females in West Bengal, Jharkhand and
Odisha together who are affected by Japanese encephalitis?
a) 22
b) 24
c) 26
d) 28
140. What is the percentage (up to 1 decimal) of females affected by ‗Japanese encephalitis‘
of the total affected population across five states?
a) 25.4
b) 36.7
c) 24.5
d) 37.6
A room having the dimensions as mentioned in the chart below has a table, a bed and a
chair. There are three books kept on the table (side by side) and also a lamp having
radius, 3.5 inch. Now, on the basis of information given below answer the following?
Sr. No. Object Length Breadth Height

1. Room 18 feet 12 feet 12 feet
2. Bed 3.5 feet 6 feet 3 feet
3. Table 3 feet 4 feet 4 feet
4. Chair 2 feet 2.5 feet 4 feet
5. Books 12 inch 6 inch 3 inch
Page 44 of 46
141. What would be the area of the room which is not covered by any object as mentioned
above?
(a) 176.5 sq. ft.
(b) 178 sq. ft.
(c) 367 sq. ft.
(d) 245.5 sq. ft.
142.What is the area of the table which is uncovered by any of the objects?
(a) 1656 sq. inch
(b) 1617.52 sq. inch
(c) 1473.52 sq. inch
(d) 1512 sq. inch
143.How many tables are required to cover the floor surface of the room completely?
(a) 18
(b) 11
(c) 21
(d) Data inadequate.
144.If the entire room is to be filled by books having same dimensions as lying on the table
then how many books are required.
(a) 2,00,736
(b) 20,736
(c) 11,736
(d) 17,522
145.How many chairs can be put inside the room so as to cover the entire floor area of the
room?
(a) 40
(b) 21
(c) 43
(d) 18
Page 45 of 46
Direction: In the figure given below, a goat is tied to a pole (at point O) which is the
center of the semi -circular plot. The area of the plot is equal to its perimeter. BO is the
length of the rope through which the goat is tied to the pole. Answer to the closest
decimal.
B
A O C
146.The length of the rope is
a. 2 + π
b. 2 + π/2
c. 2 + 2/ π
d. 2
147.The area of the plot is

a. 18.13
b. 21.83
c. 28.13
d. 11.83
148.If a triangle is created by joining points A, B, and C. What will be the length of AB?
a. 3.73
b. 7.33
c. 1.86
d. Can‘t be calculated with the given data
149.What will be the area of the triangle ABC?

a. 6.96
b. 9.66
c. 3.66
d. Can‘t be calculated with the given data
150.What will be the perimeter of the triangle ABC?

a. 40.4
b. 30.3
c. 20.2
d. 10.1
Page 46 of 46

81'(5*5$'8$7(&2856(6
681'$<7+(7+0$<
$GPLW&DUG1R 7LPH30WRS30KRXUV
205$QVZHU6KHHW1R 7RWDO0DUNV

,16758&7,21672&$1','$7(6
1R'XSOLFDWH%RRNOHWZLOOEHLVVXHG
(QWHU\RXU'LJLW$GPLW&DUGQXPEHULQWKHVSDFHSURYLGHGDERYHDQGLQWKH205
$QVZHUVKHHW
(QWHUWKH'LJLW205$QVZHU6KHHWQXPEHULQWKHVSDFHSURYLGHGDERYH
7KHUH DUH 6FFWLRQ 6HFWLRQV ,9 FRPSULVLQJ RI REMHFWLYH W\SH TXHVWLRQV 7KH
DQVZHUVWRWKHVHREMHFWLYHW\SHTXHVWLRQVDUHWREHHQWHUHGRQWKH205$QVZHUVKHHWV
E\IXOO\VKDGLQJWLOHDSSURSULDWHRYDOV
$QVZHUDOOTXHVWLRQ

6SFFLIFLQVWUXFWLRQVDUHJLYHQDWWKHEHJLQQLQJRIHDFK6HFWLRQ5HDGWKHPFDUHIXOO\
EHIRUHDQVZHULQJ
)RUURXJKZRUNWKHUHLVDEODQNSDJHDWWKHHQG
7RWDOQXPEHURISDJHVRIWKH4XHVWLRQ%RRNOHWLVH[FOXGLQJWKHURXJKVKHHWDWWKH
HQGRIWKHERRNOHW
7KH SRVVHVVLRQ RI DQ\ HOHFWURQLF JDGJHW LQ WKH H[DPLQDWLRQ KDOO ZLOO GLVTXDOLI\ WKH
FDQGLGDWHIRUEHLQJFRQVLGHUHGIRUVHOHFWLRQ
$GRSWLRQ RI DQ\ XQIDLU PHDQV GXULQJ WKH WH[W ZLOO GLVTXDOLI\ WKH FDQGLGDWH 7KH
GHFLVLRQRIWKH6XSHULQWHQGHQWRIWKH&HQWUHVKDOOEHILQDOLQWKLVUHJDUG

6,*1$785(2)7+(&(175(683(5,17(1'(17
0$5.66+((7
6HFWLRQ 3DUW 0D[0DUNV
2EMHFWLYHTXHVWLRQV
,*HQHUDO(QJOLVK $
%
&
'
(
)
,,*HQHUDO.QRZOHGJH
ϭ

,,,0DWKHPDWLFV
,9/RJLFDO5HDVRQLQJ
9/HJDO5HDVRQLQJ
7RWDO

6(&7,21,(1*/,6+
3$57²$

,QVWUXFWLRQ5HDGWKHJLYHQSDVVDJHFDUHIXOO\DQGDWWHPSWWKHTXHVWLRQVWKDWIROORZDQG
VKDGHWKHDSSURSULDWHDQVZHULQWKHVSDFHSURYLGHGIRULWRQWKH205DQVZHU
VKHHW

([DPSOH,I
0DUNV (DFKTXHVWLRQFDUULHVRQHPDUN 7RWDO
PDUNV

0</29(2)1$785(JRHVULJKWEDFNWRP\FKLOGKRRGWRWKHWLPHVZKHQ,VWD\HGRQP\
JUDQGSDUHQWV
IDUP LQ 6XIIRON 0\ IDWKHU ZDV LQ WKH DUPHG IRUFHV VR ZH ZHUH DOZD\V
PRYLQJDQGGLGQ
WKDYHDKRPHEDVHIRUDQ\OHQJWKRIWLPHEXW,ORYHGJRLQJWKHUH,GULQN
LWZDVP\JUDQGPRWKHUZKRHQFRXUDJHGP\PRUHWKDQDQ\RQHVKHWDXJKWPHWKHQDPHV
RIZLOGIORZHUVDQGJRWPHLQWHUHVWHGLQORRNLQJDWWKHFRXQWU\VLGHVRLWVHHPHGREYLRXV
WRJRRQGR=RRORJ\DW8QLYHUVLW\

,GLGQ
WJHWP\ILUVWFDPHUDXQWLODIWHU,
GJUDGXDWHGZKHQ,ZDVGXHWRJRGLYLQJLQ1RUZD\
DQGQHHGHGDPHWKRGRIUHFRUGLQJWKHVHDFUHDWXUHV,ZRXOGILQGWKHUH0\IDWKHUGLGQ
W
NQRZDQ\WKLQJDERXWSKRWRJUDSK\EXWKHERXJKWPHDQ([DFWDZKLFKZDVUHDOO\TXLWH
DJRRGFDPHUDIRUWKHWLPHDQG,ZHQWRIIWRWDNHP\ILUVWSLFWXUHVRIVHDDQHPRQHVDQG
VWDUILVK,EHFDPHNHHQYHU\TXLFNO\DQGOHDUQHGKRZWRGHYHORSDQGSULQWREYLRXVO\L
GLGQ
WKDYHPXFKPRQH\LQWKRVHGD\VVR,GLGPRUHEODFNDQGZKLOHSKRWRJUDSK\WKDQ
FRORXUEXWLWZDVDVWLOOXVLQJWKHFDPHUDYHU\PXFKDVDWRROWRUHFRUGZKDW,IRXQGERWK
E\GLYLQJDQGRQWKHVKRUH,KDGQRDPELWLRQDWDLOWREHDSKRWRJUDSKHUWKHQRUHYHQ
IRUVRPH\HDUVDIWHUZDUGV

8QOLNHPDQ\RIWKHZLOGOLIHSKRWRJUDSKHUVRIWKHWLPH,WUDLQHGDVDVFLHQWLVWDQGWKHUHIRUH
P\ ZD\ RI H[SUHVVLQJ P\VHOI LV YHU\ GLIIHUHQW ,
YH WULHG IURP WKH EHJLQQLQJ WR SURGXFH
SLFWXUHV ZKLFK DUH DOZD\V ELRORJLFDOO\ FRUUHFW 7KHUH DUH SHRSOH ZKR ZLOO DOWHU WKLQJV
GHOLEHUDWHO\\RXGRQ
WSLFNXSVHDFUHDWXUHVIURPWKHPLGGOHRIWKHVKRUHDQGWDNHWKHP
GRZQWRDWWUDFWLYHSRROVDWWKHERWWRPRIWKHVKRUHZLWKRXWNQRZLQJ\RX
UHGRLQJLW,QVR
GRLQJ\RX
UHDFWXDOO\IDOVLI\LQJWKHVRUWRIVHDZHHGVWKH\KDYHRQDQGVRRQZKLFKPD\
VHHQXQLPSRUWDQWEXWLWLVDFWXDOO\FKDQJLQJWKHQDWXUDOVXUURXQGLQJVWRPDNHWKHP
Ϯ

SUHWWLHU8QIRUWXQDWHO\PDQ\RIWKHSHRSOHZKRVHOHFWSLFWXUHVDUHORRNLQJIRUDWWUDFWLYH
LPDJHV PLG DW WKH HQG RI WKH GD\ ZKHWKHU LW
V WPWKIXO RU QRW GRHVQ
W UHDOO\ PDWWHU WR
WKHP

,W
VLPSRUWDQWWRWKLQNDERXWWKHDQLPDOILUVWDQGWKHUHDUHPDQ\RFFDVLRQVZKHQ,
YHQRW
WDNHQDSLFWXUHEHFDXVHLWZRXOGKDYHEHHQWRRGLVWXUELQJ1RWKLQJLVVRLPSRUWDQWWKDW
\RXKDYHWRJHWWKDWVKRWRIFRXUVHWKHUHDUHFDVHVZKHQLWZRXOGEHYHU\VDGLI\RXGLGQ
W
EXW LW
V QRW WKH HQG RI WKH ZRUOG 7KHUH FDQ EH D ORW RI LJQRUDQFH LQ SHRSOH
V EHKDYLRU
WRZDUGV ZLOG DQLPDOV DQG LW
V D SUREOHP WKDW PRUH DQG PRUH SHRSOH DUH JRLQJ WR ZLOG
SODFHVZKLOHVRPHDQLPDOVPD\JHWXVHGWRFDUVWKH\ZRQ
WJHWXVHGWRSHRSOHVXGGHQO\
UXVWLQJ XS WR WKHP 7KH VKHHUSUHVVXUH RISHRSOH FRXSOHG ZLWK WKH IDFW WKDW WKHUH DUH
LQFUHDVLQJO\IHZHUSODFHVZKHUHQRRQHHOVHKDVSKRWRJUDSKHGPHDQVWKDWRYHUWKH\HDUV
OLIHKDVEHFRPHPXFKPRUHGLIILFXOWORUWOUHSURIHVVLRQDOZLOGOLIHSKRWRJUDSKHU

1HYHUWKHOHVVZLOGOLIHSKRWRJUDSKVSOD\DYHU\LPSRUWDQWSDUWLQHGXFDWLQJSHRSOHDERXW
ZKDWLVRXWWKHUHDQGZKDWQHHGVFRQVHUYLQJ$OWKRXJKSKRWRJUDSK\FDQEHDQHQMR\DEOH
SDVWLPHDVLWLVWRPDQ\SHRSOHLWLVDOVRVRPHWKLQJWKDWSOD\VDYHU\LPSRUWDQWSDUWLQ
HGXFDWLQJ \RXQJ DQG ROG DOLNH 2I WKH TXDOLWLHV LW WDNHV WR PDNH D JRRG ZLOGOLIH
SKRWRJUDSKHUSDWLHQFHLVSHUKDSVWKHPRVWREYLRXV²\RXMXVWKDYHWREHSUHSDUHGWRVLW
LWRXW,
PDFWXDOO\PRUHSDWLHQWQRZEHFDXVH,ZULWHPRUHWKDQHYHUEHIRUHDQGDVORQJ
DV ,
YH JRW D ELW RISDSHU DQG D SHQFLO , GRQ
W IHHO IP ZDVWLQJ P\ WLPH $QG EHFDXVH ,
SKRWRJUDSK VXFK D ZLGH UDQJH RI WKLQJV HYHQ LI WKH PDLQ WDUJHW GRHVQ
W DSSHDU , FDQ
SUREDEO\ILQGVRPHWKLQJHOVHWRFRQFHQWUDWHRQLQVWHDG

7KHZULWHUGHFLGHGWRJRWRXQLYHUVLW\DQGVWXG\=RRORJ\EHFDXVH
D VKHZDQWHGWRLPSURYHKHUOLIHLQWKHFRXQWU\VLGHEVKHZDVSHUVXDGHGWRGRVR
E\KHUJUDQGPRWKHU
F VKHZDVNHHQRQWKHQDWXUDOZRUOG
G VKHZDQWHGWRVWRSPRYLQJDURXQGDOOWKHWLPH

:K\GLGVKHJHWKHUILUVWFDPHUD"
D VKHQHHGHGWREHDEOHWRORRNEDFNDWZKDWVKHKDGVHHQ
E VKHZDQWHGWRILQGRXWLIVKHHQMR\HGSKRWRJUDSK\
F KHUIDWKHUWKRXJKWLWZDVDJRRGLGHDIRUKHUWRKDYHRQH
G VKHZDQWHGWROHDUQKRZWRXVHRQHDQGGHYHORSKHURZQSULQWV

6KHGLGPRUHEODFNDQGZKLWHSKRWRJUDSK\WKDQFRORXUEHFDXVH
DVKHGLGQRWOLNHFRORXUSKRWRJUDSK EVKHGLGQRWKDYHDJRRGFDPHUD
FVKHZDQWHGTXDOLW\SKRWRJUDSKGVKHGLGQ
WKDYHPXFKPRQH\LQWKRVHGD\V

+RZLVVKHGLIIHUHQWIURPVRPHRIWKHRWKHUZLOGOLIHSKRWRJUDSKHUVVKHPHHWV"
D VKHWULHVWRPDNHKHUSKRWRJUDSKVDVDWWUDFWLYHDVSRVVLEOH
E VKHWDNHVSKRWRJUDSKVZKLFKUHFRUGDFFXUDWHQDWXUDOFRQGLWLRQV
F VKHOLNHVWRSKRWRJUDSKSODQWVDVZHOODVZLOGOLIH
G VKHNQRZVWKHEHVWSODFHVWRILQGZLOGOLIH

:KLFKGRHV
WKHP
UHIHUWRLQWKHWKOLQHLQSDUDJUDSK"
DVHDFUHDWXUHV EDWWUDFWLYHSRROVFVHDZHHGVGQDWXUDOVXUURXQGLQJV

:KDWWKHZULWHUPHDQVE\
LJQRUDQFHLQSHRSOH
VEHKDYLRXU
LV
D DOWHULQJWKLQJVGHOLEHUDWHO\
ϯ

E SHRSOHVXGGHQO\UXVKLQJXSWRDQLPDOV
F SHRSOHWDNLQJSKRWRJUDSKVRIZLOGDQLPDOV
G SHRSOHQRWWKLQNLQJDERXWWKHDQLPDOVLQWKHILUVWSODFH

7KHZULWHUQRZIXQGVLWPRUHGLIILFXOWWRSKRWRJUDSKZLOGDQLPDOVEHFDXVH
DWKHUHDUHIHZHURIWKHPEWKH\KDYHEHFRPHPRUHQHUYRXVRISHRSOH
FLWLVKDUGHUWRILQGVXLWDEOHSODFHVGWKH\KDYHEHFRPHIULJKWHQHGRIFDUV

:LOGOLIHSKRWRJUDSK\LVLPSRUWDQWEHFDXVHLWFDQPDNHSHRSOHUHDOL]HWKDW
D SKRWRJUDSK\LVDQHQMR\DEOHKREE\
E ZHOHDUQOLWWOHDERXWZLOGOLIHDWVFKRRO
F LWLVZRUWKZKLOHYLVLWLQJWKHFRXQWU\VLGH
G ZLOGOLIHSKRWRJUDSKVHGXFDWHSHRSOHDERXWZLOGDQLPDOV

:K\LVVKHPRUHSDWLHQWQRZ"
DVKHGRHVRWKHUWKLQJVZKLOHZDLWLQJ EVKHKDVJRWXVHGWRZDLWLQJ
FVKHFDQFRQFHQWUDWHEHWWHUWKDQVKHXVHGWRGVKHNQRZVWKHUHVXOWZLOOEHZRUWKLW

:KLFKRIWKHIROORZLQJGHVFULEHVWKHZULWHU"
DSURXG EVHQVLWLYH &DJJUHVVLYH GGLVDSSRLQWHG3$57%

,QVWUXFWLRQV7KUHHRIWKHIRXUZRUGVJLYHQEHORZDUHVSHOWZURQJO\6HOHFWWKHZRUG
WKDWLVVSHOWFRUUHFWO\DQGVKDGHWKHDSSURSULDWHDQVZHULQWKHVSDFHSURYLGHGIRULW
RQWKH205DQVZHUVKHHW
0$5.6(DFKTXHVWLRQFDUULHV2QHPDUNV7RWDOPDUNV
DDFTXLQWHQFHEDFTXDLQWDQFHFDFTXDLQWDQFHGDFTXLQWDQFH
DQFJOHJHQVHEQHJOLJHQFHFQHJOLJHQFHGQHJOLJHQFHO
DJULHYDQFHEJULHYDQFHFJULHYDQFHGJULHYHQFHD
KLHUDUFKLFDOEKLHUDUFKLFDOFOXHUHFKLFDOGKHLUHUFOWLFDOD
JDUDQWHUEJDUDQWRUFJXDUDQWHUGJXDUDQWRU

3$57&

,QVWUXFWLRQV 6HOHFW WKH EHVW RSWLRQ IURP WKH IRXU DOWHPDOLYHV JLYHQ DQG VKDGH WKH
DSSURSULDWHDQVZHULQWKHVSDFHSURYLGHGIRULWRQWKH205DQVZHUVKHHW
0DUNV (DFKTXHVWLRQFDUULHVRQHPDUNV 7RWDOPDUNV

7KH\OLYHRQDEXV\URDGBBBBBBBBBBDORWRIQRLVHIURPWKHWUDIILF
D ,WPXVWEHE,WPXVWKDYH F7KHUHPXVWKDYHG7KHUHPXVWEH
7KHPRUHHOHFWULFLW\\RXXVHBBBBBBBBBBBBBBBBBB
D \RXUELOOZLOOEHKLJKHU EZLOOEHKLJKHU\RXUELOO
FWKHKLJKHU\RXUELOOZLOOEH GKLJKHU\RXUELOOZLOOEH
%HQOLNHVZDONLQJBBBBBBBBB
D (YHU\PRUQLQJKHZDONVWRZRUN E+HZDONVWRZRUNHYHU\PRUQLQJ
F+HZDONVHYHU\PRUQLQJWRZRUN G+HHYHU\PRUQLQJZDONVWRZRUN
,W
VWZR\HDUVBBBBBBBB6RSOW\
D WKDW,GRQ
WVHH EWKDW,KDYHQ
WVHHQ
FVLQFH,GLGQ
WVHH GVLQFH,ODVWVDZ
:KDWZDVWKHSUREOHP":K\BBBBBBBBOHDYHHDUO\"
ϰ

D KDYH\RXWR EGLG\RXKDYHWRFPXVW\RX G\RXKDGWR

1RERG\EHOLHYHG$QPDWILUVWEXWKHWREHULJKW
D ZRUNHGRXW EFDPHRXW FIRXQGRXW GWXUQHGRXW
:HFDQ
WBBBBBBBBBBBBBBBPDNLQJDGHFLVLRQ:HKDYHWRGHFLGHQRZ
D SXWDZD\ E3XWRYHLFSXWRIIGSXWRXW
7KHDFFLGHQWZDVP\IDXOWVR,KDGWRSD\IRUWKHGDPDJHBBBBBBBBBWKHRWKHUFDU
D RI E)RUFWRGRQ
,UHDOO\REMHFWBBBBBBBBBBSHRSOHVPRNLQJLQP\KRXVH
D WR EDERXW FIRUGRQ
$FRQWUDFWPD\EHBBBBBBBBLIWKHFRXUWILQGVWKHUHKDVEHHQPLVLQWHUSUHWDWLRQRIWKH
IDFWV
D UHVWUDLQHGEUHVFLQGHGFFRPSHOOHGGFRQIHUUHG

3$57²'

,QVWUXFWLRQ 7KH ILYH SDUDJUDSKV JLYHQ EHORZ KDYH DOO KDG WKHLU FRQVWLWXHQW VHQWHQFHV
MXQWEOHG5HDGHDFKMXPEOHGSDVVDJHFDUHIXOO\DQGWKHQSLFNWKHRSWLRQLQ
ZKLFKWKHEHVWVHTXHQFHLVVKRZQPLGVKDGHGLHDSSURSULDWHDQVZHULQWKH
VSDFHSURYLGHGIRULWRQWKH205DQVZHUVKHHW
0DUNV (DFKTXHVWLRQFDUULHVORQHPDUNV7RWDOPDUNV

81,7,
L 7KH 6XSHUWDJ VFDQQHU FRXOG UHYROXWLRQLVH WKH ZD\ SHRSOH VKRS YLUWXDOO\ HUDGLFDWLQJ
VXSHUPDUNHWTXHXHVLL7KHIDFHRIUHWDLOLQJZLOOFKDQJHHYHQPRUHUDSLGO\ZKHQWKHILEUH
RSWLFQHWZRUNVEHLQJEXLOWE\FDEOH79FRPSDQLHVEHJLQWREHPRUHZLGHO\XVHGLLL7KH
VFDQQHUZRXOG KDYH DGRXEOHEHQHILW IRUVXSHUPDUNHWV UHPRYLQJ WKHERWWOHQHFN ZKLFK
FDXVHVILQVWUDWLRQ>RPRVWFXVWRPHUVDQGUHGXFLQJWKHQXPEHURIFKHFNRXWVWDII
LY$QHOHFWURWLFVFDQQHUZKLFKFDQUHDGWKHHQWLUHFRQWHQWVRIDVXSHUPDUNHWWUROOH\DWD
JODQFHKDVMXVWEHHQGHYHORSHG

7KHEHVWVHTXHQFHLV
DLLLLLLLY ELYLLLLLL FLYLLLLLL GLLLLLYLL

81,7,,
L 2IFRXUVH PRGHUQ SRVWDO VHUYLFHV QRZ DUH PXFK PRUH VRSKLVWLFDWHG DQG
IDVWHUUHO\LQJDVWKH\GRRQPRWRUYHKLFOFVDQGSODQHVWLYGHOLYHU\LL,QGHHGWKH
DQFLHQW(J\SWLDQVKDGDV\VWHPIRUVHQGLQJOHWWHUVIURPDERXW%&DVGLGWKH
=KRXG\QDVW\LQ&KLQDDWKRXVDQG\HDUVODWHULLL/HWWHUVZHUHDQGDUHVHQWE\
VRPHIRUPRISRVWDOVHUYLFHWKHKLVWRU\RIZKLFKJRHVEDFNDORQJZD\
LY)RUFHQWXULFVWKHRQO\IRUPRIZULWWHQFRUUHVSRQGHQFHZDVWKHOHWWHU

7KHEHVWVHTXHQFHLV
ϱ

81,7,,,
L &RQYHUWLQJPRQH\LQWRVHYHUDOFXUUHQFLHVLQWKHFRXUVHRIRQHWULSFDQDOVR
EHTXLWHH[SHQVLYHJLYHQWKDWEDQNVDQGEXUHDX[GHFKDQJHFKDUJHFRPPLVVLRQ
RQWKHWUDQVDFWLRQLL7U\LQJWRZRUNRXWWKHYDOXHRIWKHYDULRXVQRWHVDQGFRLQV
FDQEHTXLWHDVWUDLQSDUWLFXODUO\LI\RXDUHYLVLWLQJPRUHWKDQRQHFRXQWU\
LLL7UDYHOFDQEHYHU\H[FLWLQJEXWLWFDQDOVREHUDWKHUFRPSOLFDWHGLY
2QHRIWKHVHFRPSOLFDWLRQVLVXQGRXEWHGO\IRUHLJQFXUUHQF\

)LOHEHVWVHTXHQFHLV

81,7,9
L 6KHZHXULJKWDERXWWKUHHFXULRVLW\IUHFNOHVDQGGRXEWEXWZURQJDERXW
ORYHLL3RXURIWKHULQJV,
GEHEHWWHUZLWKRXW/RYHFXULRVLW\IUHFNOHVDQGGRXEW
LLL/RYHLVLQGLVSHQVDEOHLQOLIH
LY6RZURWH'RURWK\3DUNHUWKH$PHULFDQZULWHU

7KHEHVWVHTXHQFHLV
81,79
L 7KLV FOHDUO\ LQGLFDWHV WKDW WKH EUDLQV RI PHQ DQGZRPHQ DUH RUJDQL]HG
GLIIHUHQWO\LQWKHZD\WKH\SURFHVVVSHHFKLL'LIIHUHQFHLQWKHZD\PHQDQGZRPHQ
SURFHVVODQJXDJHLVRIVSHFLDOO\LQWHUHVWWREUDLQUHVHDUFKHUV
LLL+RZHYHUZRPHQDUHPRUHOLNHO\WKDQPHQWRVXIIHUDSKDVLDZKHQWKHIURQWSDUW
RI WKH EUDLQ LV GDPDJHG LY ,W KDV EHHQ NQRZQ WKDW DSKDVLDD NLQG RI VSHHFK
GLVRUGHULVPRUHFRPPRQLQPHQ8ODQLQZRPHQZKHQWKHOHIWVLGHRI,KHEUDLQLV
GDPDJHGPD[LDFFLGHQWRUDIWHUDVWURNH

7KHEHVWVHTXHQFHLV
D LLLLLLLYELYLLLLLL FLYLLLLLLGLLLLLYLL

3$57(

,QVWUXFWLRQ *LYHQ EHORZ DUH ILYH OLVW RI ZRUGV IROORZHG E\ VRPH FKRLFHV ,Q HDFK FDVH
FKRRVH WKH DOWHUQDWLYH WKDW \RX FDQ FRPELQH ZLWK HYHU\ ZRUG LQ WKDW
SDUWLFXODU OLVW WR IRUP D IDPLOLDU ZRUG SKUDVH DQG VKDGH WKH DSSURSULDWH
DQVZHULQWKHVSDFHSURYLGHGIRULWRQWKH205DQVZHUVKHHW

0DUNV (DFKTXHVWLRQFDUULHVORQHPDUN 7RWDOPDUNV

'RZQDVLGHDERXWIRUWK
DVHWEIO\ FEXP G/DNH
2YHUDERXWDIWHUDW
DFURVV EOD\ FKHUH GJR
)RUZDUGDFURVVDURXQGXSRQ
DVWUDLJKW EFRPH FIDVW GPDUN
,QGRZQIRURXW
DSUD\ WU\ FJURZ GVWDQG
ϲ

$ZD\WKURXJKXSGRZQ
DVWD\ EFRPH FEUHDN GVSHDN

3$57)

,QVWUXFWLRQ *LYHQ EHORZ DUH D IHZ IRUHLJQ ODQJXDJH SKUDVHV WKDW ZH FRPPRQO\ XVHG
&KRRVH WKH FRUUHFW PHDQLQJ IRU HDFK RI WKH SKUDVHV DQG VKDGH WKH
DSSURSULDWHDQVZHULQWLOHVSDFHSURYLGHGIRULWRQWKH205VKHHW
0DUNV (DFKTXHVWLRQFDUULHVRQHPDUN 7RWDO
PDUNV

3ULPDIDFLH
D7KHPRVWLPSRUWDQW EWKDWZKLFKFRPHVILUVW
FDWILUVWYLHZ GWKHIDFHWKDWLV\RXQJ
6LQHGLH
D ZLWKRXWVHWWLQJDIL[HGGD\
E E\YRLFHYRWH
F DSSO\LQJPDWKHPDWLFDOFRQFHSWVWRVROYHDGLIILFXOWSUREOHP
G VLJQLQJOHJDOGRFXPHQWEHIRUHGHDWK

%RQDILGH
D ,GHQWLILFDWLRQFDUGEZLWKRXWGRXEWFLQJRRGIDLWKGLQGLVSHVVLEOHFRQGLWLRQ
6WDWXV4XR
D OHJDOO\YDOLGESUHVHQWFRQGLWLRQFVRFLDOSRVLWLRQGVLGHUHPDUNV
'HMXUH
D KHUHDQGWKHUHEDVSHUODZFVPDOOGHWDLOVGVLGHUHPDUNV

6(&7,21,,*(1(5$/.12:/('*(

,QVWUXFWLRQ )URP WKH IRXU DQVZHUV VKDGH WKH PRVW DSSURSULDWH DQVZHU LQ WKH VSDFH
SURYLGHGIRULWRQWKH205VKHHW
0DUNV (DFKTXHVWLRQFDUULHVôKDOIPDUN 7RWDOPDUNV

7KH 6XSUHPH &RXUW RI ,QGLD XSKHOG WKH GHFLVLRQ WR LPSOHPHQW WKH TXRWD IRU RWKHU
EDFNZDUG FODVVHV 25&
V LQ KLJKHU HGXFDWLRQDO LQVWLWXWLRQV 7KH FRXUW KRZHYHU
H[FOXGHGWKHFUHDP\OD\HUIURPEHLQJDEHQHILFLDU\WKHUHDVRQLV
D &UHDP\OD\HULVQRWDQ2%&LWLVIRUZDUGFDVWH
E &UHDP\OD\HULVSROLWLFDOO\SRZHUOLG
F ,WFDOOFRQWSOHWHZLWKKRWKHUVRQHTXDOIRROLQJ
G WKHLQFOXVLRQRIFUHDP\OD\HUZRXOGEHXQMXVW

+HGJHIXQGLVDIXQG
D XVHGIRUDEVRUELQJLQIODWLRQ
E XVHGIRUFXV,OLRQLQJKHDOWKULVNV
F DSSOLHGWRPLQLPL]HWKHULVNRIILQDQFLDOPDUNHWWUDQVDFWLRQV
G DSSOLHGIRUDEVRUELQJWKHULVNLQFRPPRGLW\WUDGLQJ

:KDWGRHVVWURQJZSFHDVDJDLQVWWKHGROODUPHDQWR,QGLD"
ϳ

DWKHUHLVD%DODQFHRI3D\PHQWVVXUSOXVE,QGLDQHFRQRP\LVJOREDOO\UHVSHFWHG
FLWLVDVLJQRIHFRQRP\EXR\DQF\ G,QFRPHIURPH[SRUWVLVIDLOLQJ

1DPHWKHODWHVWVWDWHZKLFKGHFODUHGLQGHSHQGHQFHLQ
D6HUELR E.RVRYR F.XUGLVWDQG7LEHW
1DPH WKH )LQDQFH 0LQLVWHU ZKR SUHVHQWHG WKH KLJKHVW QXPEHU RI %XGJHWV LQ WKH
3DUOLDPHQWVRIDU
D3&KLGDPEDUDPE0RUDUML'HVDL F0DQPRKDQ6LQJKG77.ULVKQDUQDFKDUL

:KRLVWKH&KDLUPDQRIWK)LQDQFH&RPPLVVLRQFRQVWLWXWHGLQ"
D9LMD\.HONDU E&5DQJDUDMDQ F$VKRN/DKLUL G.&3DQW

,QGR86QXFOHDUGHDOZDVRSSRVHGLQ3DUOLDPHQWPDLQO\EHFDXVHD
DOO,QGLDQQXFOHDUUHDFWRUZRXOGIDOOXQGHU$PHULFDQVXSHUYLVLRQ
E1XFOHDUHQHUJ\VHFWRUZLOOEHGRPLQDWHGE\$PHULFDQFRUSRUDWLRQVF
1XFOFDUUHODWLRQVEHWZHHQ,QGLDDQG86$ZLOOEHJRYHUQHGE\WKH+\GH$FW
G7KH86$ZLOOGLFWDWH,QGLDQSROLFLHV

7KH,QGLDQLQGXVWULDOLVWZKRERXJKW7LSX6XOWDQ
VVZRUGLQDQDXFWLRQLQ/RQGRQZDV
D 9LMD\0DOO\DE$QLO$PEDQL F$PDU6LQJK G/DNVKPL0LWWDO

7KHFRQWHQWLRXV%DJOLKDUGDPLVEXLOWRQWKHULYHU

D ,QGXVE-KHHODP F&KHQDE G6DWOH=
:KLFKFRXQWU\KDVLWVULFKHVWPDQDVWKHKHDGRIWKHJRYHUQPHQW"
D7KH86$ E,WDO\ F6DXGL$UDELD G5XVVLD

:KRLVWLOHSHUVRQNQRZQDVWKH)DWKHURI0RGHUQ,QGLDQ5HWDLO7UDGH"
D0XNHVK$PEDQLE.LVKRUH%LMDQLF$GLW\D%LUODG$QLO$PEDQL

7KHODUJHVWVRIWZDUHVHUYLFHFRPSDQ\LQ$VLDLV
D:,352 E,1)26<6
F7DWD&RQVXOWDQF\6HUYLFH G6DW\DUQ&RPSXWHU

WDLNRQDXWPHDQV
DDFKDUDFWHULQFRPLFVWULSV EDFKDUDFWHULQ5XVVLDQRSHUD
FDVWURQDXWLQFKLQD GDGHOLFLRXV-DSDQHVHGLVK

WKH&(2RI0LFURVRIW&RUSRUDWLRQLV
D%LOO*DWHVE:DUUHQ%XIIHWW F6WHYH%DOOPHU G-RKQ:DOODFH

WKHFRXQWU\ZKLFKVWDQGVIRU*URVV1DWLRQDO+DSSLQHVVLQFRQWUDGLVWLQFWLRQRI*URVV
1DWLRQDO3URGXFW
D6ZHGHQ E6ZLW]HUODQG F%KXWDQ G)LQODQG

7KHKLJKHVWSDLGKHDGRIWKHJRYHUQPHQWLQWKHZRUOGDWSUHVHQWLVLQ
D7KH86$ E5XVVLDQ)HGHUDWLRQF6LQJDSRUH G-DSDQ

7KHFXUUHQWLPSDVVHLQ'RKD5RXQGRI1HJRWLDWLRQVLVFHQWHUHGDURXQG
DDFFHVVWRFKHDSHUGUXJVEDFFHVVWRPDUNHWVRIGHYHORSHGFRXQWULHV
ϴ

FDJULFXOWXUDOVXEVLGLHVSURYLGHGG UHPRYDO RI QRQWDULII EDUULHUV E\

GHYHORSHGFRXQWULHV

7KHSKHQRPHQRQFDOOHG(TXLQR[LVGXHWRWKH
DUHWDWLRQRIWKHHDUWKRQLWVRZQD[LVEUHYROXWLRQRIWKH(DUWKRQLWVLQFOLQHGD[LV
FREODWHVSKHURLGVKDSHRIWKH(DUWKGJUDYLWDWLRQDOSXOORIWKHSODQHW

WKH'LUHFWRU*HQHUDORIWKH:RUOG7UDGH2UJDQL]DWLRQLV
D5HQDOWR5XJJLHURE3DVFDO/DWQ\ F$UWKXU'XQNHOO G2OLYHUORQJ
&DSLWDODFFRXQWFRQYHUWLELOLW\VLJQLILHV
D *XDUDQWHHLQJWKHULJKWWRLQYHVWPHQWWRIRUHLJQHUV
E HQVXULQJWKHULJKWRIEX\HUVWRPDNHLQWHUQDWLRQDOSD\PHQWV
F HQVXULQJIUHHLQWHUQDWLRQDOPRYHPHQWRIFDSLWDO
G HQVPLQJWKHULJKWRIDQLQGLYLGXDOWRLQYHVWLQIRUHLJQFDSLWDOPDUNHWV

7KHSXUSRVHRI.\RWR3URWRFROLV
D WRSURPRWHWRXULVP
E WRFRQWULEXWHVXVWDLQDEOHGHYHORSPHQW
F WRSURPRWHUHQHZDEOHVRXUFHVRIHQHUJ\
G WRSXWDOLPLWRQJUHHQKRXVHJDVHPLVVLRQVE\VWDWHV

:KDWGRFDUERQFUHGLWVLJQLW\"
D &UHGLWJLYHQLQWKHFRXUVHRIFDUERQSURGXFWVVDOHV
E (QWLWOHPHQWVWRHPLWFHUWDLQTXDQWLW\RIJUHHQKRXVHJDVHV
F 3HUPLVVLEOHDPRXQWRI&DUERQGLR[LGHLQGLHDWPRVSKHUH
G 7KHHVWHQWRIFDUERQUHTXLUHGWRHQVXUHVXVWDLQDEOHGHYHORSPHQW

7KHSUDFWLFHRIVHOOLQJJRRGVLQDIRUHLJQFRXQWU\DWDSULFHEHORZWKHLUGRPHVWLFVHOOLQJ
SULFHLVFDOOHG
D'LVFULPLQDWLRQ EGXPSLQJ FGRXEOHSULFLQJ GSUHGDWRU\SULFLQJ

:KLFKRIWKHIROORZLQJLVFRQVLGHUHGDVEXOZDUNRISHUVRQDOIUHHGRP"
D0DQGDPXV E+DEHXV&RUSXV F&HUWLRUDULG4XR:DUUDQWR

9DQGH0DWDUDPLVFRPSRVHGE\
D5DELQGUDQDWK7DJRUH E6KDUDWFKDQGUD&KDWWHUMHH
F%DQNLPFKDQGUD&KDOWHUMHH G6XUHQGUDQDWK%DQHUMHH

+RZPDQ\PLQXWHVIRUHDFKGHJUHHRIORQJLWXGHGRHVWKHORFDOWLPHRIDQ\SODFHYDU\
IURPWKH*UHHQZLFKWLPH"
D)RXUPLQXWHV E7ZR0LQXWHV F(LJKWPLQXWHV GWHQPLQXWHV

$UWLFOHRI,QGLDQ&RQVWLWXWLRQGHILQHV,QGLDDV
D)HGHUDO6WDWH E8QLWDU\6WDWH F8QLRQRI6WDWHG4XDVL)HGHUDO6WDWH

:KLFKLVWKHKLJKHVWERG\WKDWDSSURYHV)LYH<HDU3ODQVLQ,QGLD"
D3DUOLDPHQW E3ODQQLQJ&RPPLVVLRQ
F1DWLRQDO'HYHORSPHQO&RQWURO G&RXQFLORI0LQLVWHUV

7KHHFRQRPLVWZKRIRUWKHILUVWWLPHVFLHQWLILFDOO\GHWHUPLQHGQDWLRQDOLQFRPHLQ
ϵ

,QGLD
D'U'5*DGJLOE'U9.595DRF'U0DQPRKDQ6LQJKG'U<9$ODJK

:KLFKRIWKH)ROORZLQJLVWKHODUJHVWSHQLQVXODLQWKHZRUOG"
D,QGLDQ3HQLQVXODE$UDELDQ3HQLQVXODF0DOD\3HUQQVXWDG&KLQHVH3HQLQVXOD

7KHSHUVRQUHVSRQVLEOHIRUHFRQRPLFPRGHOIRU,QGLDQ3ODQQLQJ
D-DZDKDU,D,1HKUXE3&0DKDODQRELVF7DU,RN6LQJKG97.ULVKQDPDFKDUL

6RFLDO)RUHVWU\DLPVDW
D (QVXULQJIXHODQGIRUHVWSURGXFHVWRZHDNHUVHFWLRQV
E 0FGLFLQDODQG)UXLWSODQWDWLRQ
F /DUJHVFDOHDIIRUHVWDWLRQ
G 6FLHQWLILFIRUHVWU\

7KH*UHDW%DUULHU5HHIUHIHUVWR
D*RPOIRUPDWLRQ E7LGDO:DYHV F+LOOUDQJH G0DQPDGHZDOOV

$QDXWLFDOPLOHLVHTXDOWR
DPHWHUV EPHWHUV FPHWHUV GPFWHUV

:KLFKRIWKHIROORZLQJLVFRQFHUQHGZLWKODQGIRUP"
D*HRORJ\ E*HRPRUSKRORJ\F(FRORJ\ G*HRJUDSK\

7KHFRXQWU\NQRZQDVWKH/DQGRI0LGQLJKW6XQ
D6ZHGHQ E1RUZD\ F)LQODQG G'HQPDUN

7KHPRQNZKRVSUHDG%XGGKLVPLQ7LEHWDQG)DU(DVW
D$QDQGD E1DJDUMXQD F3DGPDVDPEDYDG0DKHQGUD
75,3VIXQQLQJSDUWRIWKH:RUOG7UDGH2UJDQL]DWLRQLVLQWHQGHG
D WRSURYLGHIRUVWURQJHUSDWHQWSURWHFWLRQ
E WRSURPRWHWUDQVQDOLRQDOFRUSRUDWHLQWHUHVWV
F WRKDUPRQL]H,35UHJLPHLQWHUQDWLRQDOO\
G WRUHSODFH:RUOG,QWHOOHFWXDO3URSHUW\2UJDQL]DWLRQ

&DUERQGDWLQJPHWKRGLVXVHGWRGHWHUPLQHWKHDJHRI
D5RFNV K)RVVLOV F7UHHVG$QFLHQW0RQXPHQWV

7KHPDQDJLQJGLUHFWRURI'HOKL0HWURSROLWDQ5DLOZD\&RUSRUDWLRQ
D&KDLUPDQRI,QGLD5DLOZD\%RDUG E/W*RYHUQRURI'HOKL
F&6UHHGKDUDQ G6KHHOD'LNVKLW

FDUDWJROGVLJQLILHV
D SDUWRIJROGDQGSDUWVRIRWKHUPHWDOV
E SDUWVRIJROGDQGSDUWVRIRWKHUPHWDO
F SDUWVRIJROGDQGSDUWVRIRWKHUPHWDO
G 1RQHRIWKHDERYH

%DOLURDGPDSDGRSWHGLQ'HFHPEHUSURYLGHVIRU
ϭϬ

D )L[DWLRQRIJUHHQKRXVHJDVHPLVVLRQOLPLW
E /DXQFKLQJRIDQDGDSWDWLRQIXQG
F $PHQGPHQWRI81)UDPHZRUN&RQYHQWLRQRQ&OLPDWHFKDQJH
G 6SHFLDODQGGLIIHUHQWLDOWUHDWPHQWIRUGHYHORSLQJFRXQWULHV

(QULFKHGXUDQLXPXVHGLQDQXFOHDUUHDFWRULV
DXUDQLXPIUHHGRIDOOLPSXULWLHVEXQXULXPWUHDWHGZLWKUDGLDWLRQ
FXUDQLXPPL[HGZLWKLVRWRSHV GXUDQLXUQDOOR\ZLWKDOXPLQXP

7KHVFLHQWLVWUHVSRQVLEOHIRUGHYHORSLQJDWRPLFHQHUJ\LQ,QGLD
D&95DPDQ E+-%KDED F+.6HWKQD G9LNUDQW6XUDEKDL

6DOZDMXGXPSUDFWLFHGLQFHUWDLQLQ,QGLDUHIHUVWR
DZLWFKFUDIWEDPWLQJFLYLOLDQVWRILJKWPLOLWDQWV
FWUDLQLQJFLYLOLDQVLQWKHXVHRIILUHDUPV GWUDLQLQJFLYLOLDQVWREHKRPHJXDUGV

,QGLDQZKRZRQ5DPDWW0DJVD\VD\DZDUGLQ
D$UXQ5R\ E36DLQDWK F0HGKD3DWNDU G5XWK0DQRUDPD

7KHSHUVRQZKRZRQ-DZDKDUODO1HKUXDZDUGLQ
D/XODGH6OYDE+XJR&KDYH]F$XQJ6DDQ6XX.LG)LGHO&DVWUR

)UHH7UDGH$UHDPHDQV
D WKHDUHDZKHUHDQ\WKLQJFDQEHERXJKWDQGVROG
E FRXQWULHVEHWZHHQZKRPWUDGHEDUULHUVKDYHEHHQVXEVWDQWLDOO\UHGXFHG
F FRXQWULHVZKLFKKDYHFRPPRQH[WHUQDOWDULII
G FRXQWULHVZKLFKKDYHFRPPRQFXUUHQF\

$IILUPDWLYHDFWLRQLQ,QGLDQFRQWH[WVLJQLILHV
D SURYLGLQJVHFXULW\WRZHDNHUVHFWLRQV
E ZHOIDUHPHDVXUHVWRDOOHYLDWHWKHVXIIHULQJVRISRRUSHRSOH
F SURYLGLQJSRVLWLYHRSSRUWXQLWLHVWRGHSULYHGVHFWLRQV
G JLYLQJLQFHQWLYHVWRVWDUWLQGXVWULHV
6SHFLDO(FRQRPLF=RQHVDUH
D WKHSODFHVZKHUHLQGXVWULHVFDQRSHUDWHZLWKRXWDQ\FRQWURO
E WKHSODFHVZKHUHLQDQ\SHUVRQFDQVWDUWDQ\LQGXVWU\
F WKHSODFHVZKHUHLQGXVWULHVJHWFHUWDLQWD[DGYDQWDJHV
G WKHSODFHVZKHUHLQWKHQDWLRQDOODERXUODZVGRQRWDSSO\

7KHVSDFHVKXWWOHZKLFKVXFFHVVIXOO\FDUULHG6XQLWD:LOOLDPVWRVSDFH
D&KDOOHQJHU E$WODQWLV F'LVFRYHU\G&ROXPEXV

7KHOHDGHUZKROHGWKHFRXQWU\LQDWRQLQJIRUWKHSDVWZURQJV
D-RKQ+RZDUG E'HVPRQG7XWX F.HYLQ5XGG G-LPP\&DUWHU

*DQGKLMLH[SRXQGHGKLVHFRQRPLFLGHDVLQ
D+LQGX6ZDUDM E0\([SHULPHQWVYULWK7UXWK
F8QWRWKH/DVW G(FRQRPLFVRISHUPDQHQFH

%LRIXHOVKDYHEHFRPHFRQWURYHUVLDOEHFDXVH
ϭϭ

DWKH\LQFUHDVHHQYLURQPHQWDOSROOXWLRQEWKH\VORZGRZQLQGXVWULDOL]DWLRQ
FWKH\UHGXFHIRRGFLYLOL]DWLRQ GWKH\OHDGWRGHJHQHUDWLRQRIVRLO

(YHUJUHHQLQJRISDWHQWVPHDQVD
JUDQWLQJSDWHQWVLQSHUSHWXLW\
E JUDQWLQJSDWHQWVIRU\HDUV
F JUDQWLQJSURWHFWLRQWRLQFUHPHQWDOLQYHQWLRQVKDYLQJQRVXEVWDQWLDOVLJQLILFDQFH
G SDWHQWLQJRIJUHHQWHFKQRORJ\

%\ VLJQLQJ ZKLFK SDFW ZLWK *DQGKLML GLG $PEHGNDU JLYH XS KLV GHPDQG IRU VHSDUDWH
HOHFWRUDWHV
D3RRQD3DFW E$OLJDUK3DFW F'HHP3DFW G'HOKL3DFW

,QGLDHDPVPD[LPXPIRUHLJQH[FKDQJHIURPWKHH[SRUWRI
D*DUPHQWV E-XWH
F*HPVDQG-HZHOOHULHV G/LJKWHQJLQHHULQJJRRGV

6XQLWD:LOOLDPVUHQRZQHGDVWURQDXWRIKUGLDQRULJLQVSHQWDUHFRUGGD\VLQVSDFH
D E F G

7KHVHFRQGELJJHVWJUHHQKRXVHJDVHPLWWHUDIWHUWKH86$LQWKHZRUOGLV
D5XVVLD E*HUPDQ\ F&KLQD G-DSDQ

7KHDXWKRURIPDQDJHPHQWSULQFLSOH,QDKLHUDUFK\HYHU\HPSOR\HHWHQGVWRULVHWR
KLVOHYHORILQFRPSHWHQFH
D3URI'XFNHUE3RUI-3HWHUF3URI&+3UDKODGG3URI6FKLPLWWKRII

7KH:RUOG7UDGH2UJDQL]DWLRQZDVHDUOLHUNQRZQDV
D81&7$' E*$77 F81,'2 G81&,75$/

7KH:DLWLQJZDOOLVDVVRFLDWHGZLWK
D&KULVWLDQV E%DKDLV -HZV G6KLDV

$Q(GXFDWLRQ0LQVLWHUZKRJRW%KDUDWD5DWQDLQ,QGLD
D*%3DQWE0&&KDJOD F $EXO .DODP $]DG G +XPD\XQ .DELU :K\ LV
2]RQH/D\HU,PSRUWDQW"
D,WDEVRUEVJUHHQKRXVHJDVHVE,WSURWHFWV(DUWKIURPXOWUXYLROHWUDGLDWLRQ
F,WPDLQWDLQVHDUWK
V7HPSHUDWXUHG,WLVDEXIIHUDJDLQVWH[WUDWHUUHVWULDOKD]DUGV

7KH:RUOG
VODUJHVWULYHULV
D%RDKPDSXWUD E$PD]RQ F1LOH G0LVVLVVLSSL

7VXQDPLLVFDXVHGE\
DSODWHWHFWRQLFV EXQGHUZDWHUULGJHV
FXQGHUZDWHUYROFDQLFDFWLYLW\ GSUHVVXUHIURP(DUWK
VFRUH

7KH&KLSNRPRYHPHQWLVDVVRFLDWHGZLWK
DSUHYHQWLQJWKHIHOOLQJRIWUHHV EDIIRUHVWDWLRQ
FWUDQVSDUHQF\LQSXEOLFOLIH GVXVWDLQDEOHGHYHORSPHQW
ϭϮ

7KHILUVW*UHDW,QGLDWL(PSLUHZDV
D0DJDGKDQ(PSLUHE.XUX(PSLUHF3DQGDYD(PSLUHG*PWGKDUD(PSLUH

7KHILUVW3UHVLGHQWRI,QGLDQ1DWLRQDO&RQJUHVV
D$2+DPHE:&%DQHUMHHF'DGDEKD1DXURMLG3KLUR]HVKDK0HKWD

7KH.LQJZKRJDYHSHPWLVVLRQWRHVWDEOLVK(DVW,QGLD&RPSDQ\LQ,QGLD
D-DKDUQJLU E$XUDQJ]HE F6KDKMDKDQ G6KHUVKDK
7KHSHUVRQZKRFRQFHSWXDOL]HGWKHLGHDRI3DNLVWDQ
D0$-LQQDK E+DNLP$]PD,.KDQF0RKDPPDG,TEDOE/LTXDVDW$OL.KDQ

.KLODIDWPRYHPHQWZDVRUJDQL]HG
D IRUJHWWLQJ0XVOLPKRPHODQG
E DVDSURWHVWDJDLQVW%ULWLVKVXSSUHVVLRLQRI7XUNV
F WRSUHVHUYH7UXNLVK(PSLUHZLWK.KLODIDWDVWHPRUDOKHDG
G DVDSURWHVWDJDLQVWFRPPXQDOSROLWLFV

7KHSDWWHUQRI&HQWUH6WDWHUHODWLRQVLQ,QGLDFDQEHWUDFHGEDFNWR
D7KH86&RQVWLWXWLRQ E7KH*RYHUQPHQWRI,QGLD$FW
F0RWLODO1HKUX&RPPLWWHH5HSRUW G$PEHGNDU·V9LVLRQ

,QGLDQZKRSOD\HGDYHU\LPSRUWDQWUROHLQ:RUOG&RPPXQLVW0RYHPHQW
D-\RWL%DVX E015R\F$.*RSDODQ G3UDNDVK.DUDW

:KRZDVWKHILUVWUHFLSLHQWRI-QDQDSLWKDZDUG"
D$PULWD3ULWDPE'LQNDU F'9*XQGDSSDG*6KDQNDUD.XUXS

1DPHWKHZLQQHURI1REHO3UL]HIRUOLWHUDWXUH"
D'RUULV/HVVLQJE961DLSDOF'RUDV/HVVLQJG6DOPRQ5DXVKGLH

3OHD%DUJDLQLQJLV
DSHUPLVVLEOHLQ,QGLD ELOOHJDOLQ,QGLD
FPDQGDWRU\LQ,QGLD GDOORZHGVXEMHFWWRWKHSHUPLVVLRQRIWKHFRXUW

7KHSHUVRQDSSRLQWHGE\WZRSDUWLHVWRVHWWOHDGLVSXWHLVNQRZQDV
D-XGJH E$UELWUDWRUF6ROLFLWRU G&RQFLOLDWRU

5LJKWWRWUDYHOLVDIXQGDPHQWDOULJKWXQGHU
D$UWLFOHRIWKH&RQVWLWXWLRQ E$UWLFOHRIWKH&RQVWLWXWLRQ
F$UWLFOHRIWKH&RQVWLWXWLRQ G1RQHRIWKHDERYH

*HQHWLFDOO\PRGLILHGVHHGVKDYHEHFRPHFRQWURYHUVLDOPDLQO\EHFDXVHRI
DDGYHUVHLPSDFWRQKXPDQKHDOWK EDGYHUVHLPSDFWRQIORUDDURXQG
FDGYHUVHLPSDFWRQR]RQHOD\HU GHPLVVLRQRIJUHHQKRXVHJDVHV

/HJDODLGIRUDQDFFXVHGLV
D)XQGDPHQWDOULJKW EOHJDOULJKW
FGLUHFWLYHSULQFLSOHRI6WDWH3ROLF\ G'LVFUHWLRQRIVWDWH
ϭϯ

7KHPHPEHUVRI&RQVWLWXHQW$VVHPEO\ZKRIUDPHGWKH&RQVWLWXWLRQZHUH
DGLUHFWO\HOHFWHGE\WKHSHRSOH ELQGLUHFWO\HOHFWHG
FQRPLQDWHG GDSSRLQWHGE\SROLWLFDOSDUWLHV

$PEHGNDUDFWHGLQ&RQVWLWXHQW$VVHPEO\DV
D3UHVLGHQWRIWKH$VVHPEO\ E&KDLUPDQRIWKH'UDIWLQJ&RQLDQLWWHH
FWKHOHDGLQJVSRNHVPDQRIZHDNHUVHFWLRQVGDVWURQJGHIHQGHURIIXQGDPHQWDOULJKW

,Q,QGLDLQWHUQDWLRQDOWUHDWLHVZHUDWLILHGE\
D3DUOLDPHQWE3UHVLGHQWF3ULPH0LQLVWHUG7KH8QLRQ&DELQHW

,WLVDFRQVWLWXWLRQDOUHTXLUHPHQWWKDWWKH3DUOLDPHQWVKDOOPHHWDWOHDVW
D7ZLFHLQD\HDU EWKULFHLQD\HDU FRQFHLQD\HDU GQRQHRIWKHDERYH

*RYHUQRURID6WDWHFDQEHUHPRYHGE\
D ,PSHDFKPHQWE\6WDWH/HJLVODWXUH
E 7KH3UHVLGHQW
F %\WKH6WDWH&DELQHW
G 7KH8QLRQ*RYHUQPHQWDWWKHUHTXHVWRIWKH&KLHI0LQLVWHU

6RYHUHLJQW\XQGHUWKH&RQVWLWXWLRQEHORQJVWR
D7KH3DUOLDPHQW EWKHSHRSOH
F7KH6XSUHPH&RXUW GWKH3UHVLGHQWDORQJZLWKSDUOLDPHQW

7KH6XSUHPH&RXUWXSKHOG0DQGDO&RPPLVVLRQ5HSRUWLQ
D%RPPDLY8QLRQRI,QGLD E,QGUD6DZKQH\Y8QLRQRI,QGLD
F8QQLNULVKQDQDY8QLRQRI,QGLDQ G0DQHND*DQGKLY8QLRQRI,QGLD

8QGHURXU&RQVWLWXWLRQULJKWWRSURSHUW\LV
D)XQGDPHQWDOULJKW EEDVLFVWUXFWXUHRIWKH&RQVWLWXWLRQ
F&RQVWLWXWLRQULJKW GDPHUHOHJDOULJKW

7KH&KDLUPDQRI6L[WK3D\&RPPLVVLRQ
D-XVWLFH%16ULNULVKQDE-XVWLFH5DWQDYHO3DQGLDQ
F-XVWLFH-DJDQQDWKD6KHWW\ G-XVWLFH$.0DMXPGDU

5LJKWWRHGXFDWLRQHPDQDWHVIURP
D ULJKWWRFXOWXUHDQGHGXFDWLRQXQGHUDUWLFOHVDQG
E ULJKWWRHTXDOLW\WLQGHU$UWLFOH
F IUHHGRPRIVSHHFK H[SUHVVLRQXQGHU$UWLFOH
G ULJKWWROLIHDQGSHUVRQDOOLEHUW\XQGHU$UWLFOH
,QWHUQDWLRQDO&RXUWRI-XVWLFHLV
DDQLQGHSHQGHQWLQWHUQDWLRQDOLQVWLWXWLRQEDSULQFLSDORUJDQRIWKH812
FDVXEVLGLDU\RUJDQRIWKH812 GDQ(XURSHDQ,QVWLWXWLRQ

7KH/LEHUKDQ&RQQQLVVLRQZKLFKUHFHLYHGUHSHDWHGH[WHQVLRQVKDVEHHQLQTXLULQJLQWR
D*RGKUDULRWV E0XPDLULRW
FGHPROLWLRQRI%DEUL0DVMLG G.LOOLQJRI6LNKVLQ'HOKL
ϭϰ

7KLV0RQRSROLHVDQG5HVWULFWLYH7UDGH3UDFWLFH$FWZDVUHSHDOHGE\
D&RPSHWLWLRQ$FW E&RQVXPHU3URWHFWLRQ$FW
F)RUHLJQ7UDGH'HYHORSPHQWDQG5HJXODWLRQ$FWG/LEHUDOL]DWLRQ3ROLF\RIWKH
*RYHUQPHQW

2QO\MXGJHDJDLQVWZKRPDPRWLRQRILPSHDFKPHQWZDVLQWURGXFHGLQWR3DUOLDPHQW
D-XVWLFH6XEED5DRE-XVWLFH5DPDVZDPLF-XVWLFH0DKDMDQG-XVWLFH9LUDVZDPL

7KH0DOOLPDWK&RPPLWWHH5HSRUWGHDOVZLWK
D-XGLFLDOGHOD\VLQ,QGLD EFULPLQDOMXVWLFHDGPLQLVWUDWLRQ
F6WRFNPDUNHWUHIRUPV GUHYLHZRIFRQVWLWXWLRQDOV\VWHP

7KHILUVW:RPDQ&KLHI-XVWLFHRI+LJK&RXUWRI,QGLD
D/DLOD0XNKHUMHH E/DLOD6HWK
F)DWLPD%LEL G5XPD3DO

/RN$GDODWVKDYHEHHQFUHDWHGXQGHU
D/HJDO6HUYLFHV$XWKRULW\$FW E$UELWUDWLRQDQG&RQFLOLDWLRQ$FW
F$GPLQLVWUDWLRQRI-XVWLFH$FW G1RQHRIDERYH

5HFHQW1HSDO(OHFWLRQVDUHJOREDOO\VLJQLILFDQWEHFDXVH
D &RPPXQLVWFDPHWRSRZHUWKURXJKEDOORWER[IRUWKHILUVWWLPHLQWKHZRUOG
E 0RQDUFK\ZDVGHIHDWHGE\GHPRFUDWLFIRUFHV
F $PLOLWDQWPRYHPHQWMRLQHGWKHPDLQVWUHDP
G 6HFXODULVPWULXPSKHGRYHUWKHRFUDF\

7KH7KLUG:RUOGOHDGHUZKRKDVEHHQGHI\LQJWKH86$
D)LGHO&DVWURE+XJR&KDJH]F5REHU0XJKDEHG+X-LQDWDR

6(&7,21,,,0$7+(0$7,&$/$%,/,7<

,QVWUXFWLRQV )URP WKH IRXU DQVZHUV JLYHQ VKDGH WKH DSSURSULDWH DQVZHU LQ WKH VSDFH
0DUNV (DFKTXHVWLRQFDUULHVWZRPDUNV

5DMXHDPVWZLFHLQ0DUFKDVLQHDFKRIWKHRWKHUPRQWKVRIWKH\HDU:KDWSDUWRIWKLV
DQQXDOHDUQLQJVKHHDUQVLQWKDWPRQWK
D E F G

6DQMD\VROGKLVZDWFKIRUDQGWKHUHE\ORVVHV,QRUGHUWRJDLQKHKDVWR
VHOOWKHZDWFKIRU
D5V 5V F5V G5V

$PL[WXUHRIOWUVRIPLONDQGZDWHUFRQWDLQVRIZDWHU+RZPXFKLVWREHDGGHG
WRPL[WXUHVRWKDWWKHZDWHUPD\EHLQWKHQHZPL[WXUH
DOWUV EOWUV FOWUV GOWUV
ϭϱ

$WUDLQPHWHUVORQJUXQQLQJDWNPKUWDNHVVHFRQGVWRSDVVDEULGJH7KH
OHQJWKRIWKHEULGJHLV
DPW EPW FPW GPW

6DQUHHULVDVPXFK\RXQJHUWR0RKDQDVKHLVROGHUWR$UXQ,IWKHVXPRIWKHDJHVRI
0RKDQDQG$UXQLVWKHDJHRI6DPHHULV
D\HDUV E\HDUV F\HDUVGFDQQRWEHGHWHUPLQHG

$WDQNFDQEHILOOHGXSE\WZRSLSHV$DQG%LQKRXUVDQGKRXUVUHVSHFWLYHO\$
WKLUGSLSH&FDQHPSW\WKHIXOOWDQNLQKRXUV,IDOOWKHWDSVFDQEHWXUQHGRQDWWKH
VDPHWLPHWKHWDQNZLOOEHIXOOLQ
DKRXU EPLQXWHV FKRXUV GKRXUV

2I WKH WKUHH QXPEHUV WKH ILUVW LV RQH WKLUG RI WKH VHFRQG DQG WZLFH WKH WKLUG 7KH
DYHUDJHRIWKHVHQXPEHUVLV7KHODUJHVWRIWKHVHQXPEHUVLV
D E F G

7KHOHQJWKRIDVTXDUHLVLQFUHDVHGE\DQGEUHDGWKGHFUHDVHGE\7KHDUHDRI
WKHUHFWDQJOHVRIRQQHGLV
DQHLWKHULQFUHDVHVQRUGHFUHDVHV EGHFUHDVHVE\
FLQFUHDVHVE\ GGHFUHDVHVE\

EHWKHQWKHDPRXQWRIZDWHUWREHDGGHGIXUWKHULV
DOWUV EOWUV FOWUV GOWUV

$SLHFHRIFORWKFRVWV5V,IWKHSLHFHLVPHWHUORQJHUDQGHDFKPHWHUFRVWV5V
OHVVWKHFRVWUHPDLQVXQFKDQJHG7KHOHQJWKRIWKHSLHFHLVD
PW EPW FPW GPW

6(&7,21,9/2*,&$/5($621,1*
,QVWUXFWLRQ5HDGFDUHIXOO\WKHTXHVWLRQVDQGVKDGHWKHDSSURSULDWHDQVZHULQWKHVSDFH

$ FROOHJH UHFHLYHG ILIW\ DSSOLFDWLRQV IRU D FHUWDLQ FRXUVH ,Q WKH TXDOLI\LQJ
H[DPLQDWLRQ RQHWHQWK RI WKHP VHFXUHG PDUNV LQ UDQJH :LWKLQ UHPDLQLQJ
VHJPHQWWKUHHILIWKRIWKHPVHFXUHGPDUNVLQUDQJH7KHUHVWVHFXUHGEHORZ
7RJHWDGPLVVLRQWKHIROORZLQJUHVWULFWLRQVKROGJRRG
L 1RVWXGHQWVZKRKDVVFRUHGEHORZFDQVHHNDGPLVVLRQWR3K\VLFV
FRXUVH
LL1RVWXGHQWVLVDOORZHGWRRSW3K\VLFVZLWKRXWRSWLQJ0DWKHPDWLFVLLL1R
VWXGHQWLVDOORZHGWRRSW3K\VLFVDQG$VWURSK\VLFVVLPXOWDQHRXVO\
LY7RRSW0DWKHPDWLFVRU$VWURSK\VLFVDVWXGHQWVKRXOGKDYHVFRUHGDWOHDVWLQWKH
TXDOLI\LQJH[DPLQDWLRQ
:KLFKRQHRIWKHIROORZLQJDOWHUQDWLYHVLVSRVVLEOH"
D 1LQHW\SHUFHQWRIWLOHDSSOLFDQWVDUHDGPLWWHGWR3K\VLFVFRXUVH
E 7KLUW\ILYHSHUFHQWRIWKHDSSOLFDQWVZKRDUHRWKHUZLVHLQHOLJLEOHWRMRLQ3K\VLFVFRXUVH
DUHDGPLWWHGWR0DWKHPDWLFVPLG$VWURSK\VLFVFRXUVH
F 6WXGHQWVRI3K\VLFVFRXUVHRXWQXPEHUWKRVHRI0DWKHPDWLFV
G :KRHYHULVHOLJLEOHWRVWXG\0DWKHPDWLFVLVDOVRHOLJLEOHWRVWXG\3K\VLFV
ϭϲ

$WRXULVWFDQWRXUDOPRVWIRXUSODFHVRXWRI$%&'()DQG*2XWRIIRXUQRW
PRUHWKDQWZRFDQFRPHXQGHUKROLGD\WRXUDQGDOOHDVWWZRPXVWFRPHXQGHUEXVLQHVV
WULS7KHEUHDNXSLVDVWRIROORZV$%&DQG'%XVLQHVVWRXU()DQG*+ROLGD\WRXU
7KHIROORZLQJUHVWULFWLRQVKROGJRRG
$ ,I$LVLQFOXGHGWKHQERWK&DQG*DUHH[FOXGHG
% ,IQHLWKHU(QRU3LVLQFOXGHGWKHQ%RU*RUERWKRIWKHPFDQEHLQFOXGHG&
,I*LVLQFOXGHGWKHQ
'FDQQRWEHLQFOXGHG
:KLFKRQHRIWKHIROORZLQJFRPELQDWLRQVLVSRVVLEOH"
D$&(DQG3 E%*DQG( F$'DQG* G$%DQG'

8QGHUWKHVPLOHIDFWVLWYDWLRQDVDERYHVXSSRVHWKDWWKHIROORZLQJUHVWULFWLRQVKROG
JRRG:KLFKRQHRIWKHIROORZLQJLVDFHUWDLQW\
D$%& ( E$&' 3F%&' (G$%& I

3RXUPHPEHUVKDYHWREHQRPLQDWHGWRD&RPPLWWHHDQGWKHUHDUHVL[FDQGLGDWHV
$%&'(DQG)7KHIROORZLQJUHVWULFWLRQVKROGJRRG
$ ,I$LVQRPLQDWHGWKHQ'GRHVQRWILQGDQ\SODFH
% ,I%LVQRPLQDWHGWKHQHLWKHU(RU)KDVWREHQRPLQDWHGEXWQRWERWK
& ,I&LVQRPLQDWHGWKHQERWK'DQG%KDYHWREHQRPLQDWHG
:KLFKRQHRIWKHIROORZLQJLVDQDFFHSWDEOHFRPELQDWLRQ"
D$%DQG( E$%&DQG' F%&'DQG( G%&'DQGI

3ROLWLFDO WXUPRLO LQ D FRXQWU\ LV PDLQO\ FDXVHG E\ ZLGHVSUHDG YLROHQFHDQG IODZHG
HFRQRPLF SROLFLHV RI VXFFHVVLYH JRYHUQPHQWV,I DWDOO WKLV KDV WREHFUXVKHG LW FDQEH
DFKLHYHGRQO\E\DGLFWDWRULDORRYHQQXHQWZKLFKUXOHVZLWKLURQKDQG7KHUHIRUHWKHQHHG
RIWKHKRXULVWRHOHFWDJRYHUQPHQWZKLFKLPSRVHVIUHVKVHWRIVWULQJHQWOHJLVODWLRQV
+RZHYHURQHRIWKHPLVPRVWIRUFHIXOLGHQWLI\WKHVDPH
D ,WLVQRWWKHLPSRVLWLRQRIQHZOHJLVODWLRQVZKLFKLVUHTXLUHGEXWHIIHFWLYHDGKHUHQFHWR
GLHH[LVWLQJ,FPVODWLRZV
E 7KDWJRYHQYQHQWLVWKHEHVWJRYHUQPHQWZKLFKJRYHUQVOHDVW
F ,WLVSRVVLEOHWRRYHUFRPHDQ\HYLOE\HGXFDWLQJSHRSOH
G 2QO\GLDORJXHLQDIUHHVRFLHW\FDOOHUDGLFDWHSROLWLFDOWXUPRLO

8QGHUWKHVDPHIDFWVLWXDWLRQDVDERYHWKHDOWHUQDWLYHVVXJJHVWHGQRWQHFHVVDULO\
DOOLIWUXHVLJQLILFDQWO\VWUHQJWKHQWKHDUJXPHQW+RZHYHURQHRIWKHPLVPRVWIRUFHIXO
,GHQWLI\WKHVDPH
D (VSLRQDJH DFWLYLWLHV E\ HQHP\ E\HQHP\ QDWLRQV ZKLFK FRQWULEXWH WR SROLWLFDO
WXQQRL,FDQEHSUHYHQWHGRQO\LIWKHJRYHUQPHQWLVYHU\VWURQJ
E 7KHSKLORVRSK\EHKLQGDQ\HFRQRPLFSROLF\SXVKIURPERWWRPSUHVVIURPWDS
LV
WRIROORZHGWRPLWLJDWHYLROHQFHPLGLVLWQRWREVHUYHGF3ROLWLFDOWXUPRLOLVGXHWRFRUUXSW
HVWDEOLVKPHQW
G0DQLVE\QDWXUHDEHDVW

([SORLWDWLRQRISRRUE\ULFKFDQEHVWHPPHGRQO\LIWKHVWDWHH[HUFLVHFRPSOHWHFRQWURO
RYHU DJULFXOWXUH DQG LQGXVWULDO SURG DFWLRQ %XW VWDWH FRQWURO LV EHVHW E\ WZR HYLOV
FRUUXSWLRQDQGGHOD\7KHQHWUHVXOILVWKDWLILVWKDWLIPDQWULHVWRHVFDSHIURPRQHHYLO
WKHQKHLVWUDSSHGE\DQRWKHU6XIIHULQJKHQFHLVLQHVFDSDEOH
7KHDUJXPHQWSUHVHQWHGDERYHVHHPVWRLPSO\WKHIROORZLQJFRQFOXVLRQV,GHQWLI\WKHRQH
ZKLFKLVOHDVWGXELRXV$SSO\FRPPRQVHQVH
ϭϳ

D ,IDJULFXOWXUHDQGLQGXVWULDOSURGXFWLRQFDQEHDEROLVKHGZHFDQIUHHRXUVHOYHVIURPDOO
IRUPVRIHYLO
E 7RDYRLGHYLODXVWHUHOLIHVKDOOEHHQFRXUDJHG
F 7KHJDSEHWZHHQSRRUDQGULFKFDQEHEULGJHGE\KHDYLO\WD[LQJWKHULFKDQGSDVVLQJRQ
WKHODUJHVVWRWKHSRRUG0DQLVE\QDWXUHGLVKRQHVW

7KDWWKHKXPDQVRXOLVLRXQDWHULDOLVDQXQGLVSXWHGIDFW6LJQLILFDQWO\ZKDWLVQRW
PDWWHULVQRWVSDWLDODQGFRQVHTXHQWO\LWLVQRWYXOQHUDEOHWRPRWLRQ(YLGHQWO\QRPRWLRQ
QRGLVVROXWLRQ:KDWHVFDSHVIURPGLVVROXWLRQ"
7KHUHIRUHWKHKXPDQVRXOLVLPPRUWDO,QWKLVDUJXPHQWRQHSUHPLVHVLVPLVVLQJ
&RPSOHWHWKHDUJXPHQWE\FKRRVLQJIURPWKHIROORZLQJ
D1RWKLQJLVIUHHIURPGLVVROXWLRQ E:KDWLVLQFRUUXSWLEOHLVLPPRUWDO
F7KHUHLVQRPRWLRQ G0DWWHUGRHVQRWH[LVW

8QGHU WKH VDPH IDFW VLWXDWLRQ DV DERYH ZKLFK RQH RI WKH IROORZLQJ LI WUXH DIIHFWV
VHULRXVO\WLOHDUJXPHQWSUHVHQWHGDERYH"
D 0DWWHULVQRWERXQGE\VSDFH
E 0DWWHULVLQGHVWUXFWLEOH
F :KDWHYHUH[LVWVLVQRWQHFHVVDULO\DIIHFWHGE\PRWLRQ
G :KDWLVQRWPDWWHUDOVRLV9XOQHUDEOHWRPRWLRQ

3URWDJRQLVWV RI KXPDQ ULJKWV YHKHPHQWO\ RSSRVH FDSLWDO SXQLVKPHQW 7KHLU
RSSRVLWLRQ VWHPV PDLQO\ IURP WKUHH UHDVRQV )LUVWO\ PDQ FDQQRW WHUPLQDWH ZKDW KH
FDQQRWJHQHUDWH6HFRQGO\WLOHIXQFWLRQRISXQLVKPHQWLVWRUHIRUPWKHFXOSULW7KLUGO\D
FXOSULW VKRXOGEHJLYHQ DQ RSSRUWXQLW\ WRUHSHQW $GPLWWHGO\GHDWKSHQDOW\ IDLOV RQDOO
WKUHHFRXQWV+RZHYHUWKHGHIHQGHUVDUJXHWKDWDSHUVRQLVSXQLVKHGEHFDXVHKHKDVWR
SD\IRUKLVGHHGV5HIRUPDWLRQRUUHSHQWDQFHDFFRUGLQJWR>KHPLVSHULSKHUDO
+HQFHGHDWKSHQDOW\LVDGPLVVLEOH
:KLFKRQHRIWKHIROORZLQJLVWKHIRFXVRIWKLVGHEDWH"
D0XLVULJKWDQGSULYLOHJHVE1DWXUHDQGSXUSRVHRISXQLVKPHQW
F3UHYHQWLRQRIFULPH G0HUF\DQGUHYHQJH

6LQFH9HQXVURWDWHVVORZO\)UHG:KLSSOHWKRXJKWWKDWOLNH0HWFXU\9HQXVNHHSV
RQH IDFH DOZD\V WRZDUGV WKH 6XQ,I VR KH VDLG WKDW WKHGDUN VLGH ZRXOG EHYHU\ FROG
+RZHYHUKHNQHZZLWKGLHKHOSRIHDUOLHUVWXG\FDUULHGRXWE\3HWLWDQG1LFKROVRQWKDWLW
ZDVQRWWKHFDVH6RKHFRQFOXGHGWKDWWKHSODQHWPXVWURWDWHIDLUO\RIWHQWRNHHSWKH
GDUNHUVLGHZDUPHU
:KLFKRIWKHIROORZLQJLVWKHRULJLQDOSUHQWLVHV"
D6ORZURWDWLRQRI9HQXV E7HPSHUDWXUHRI9HQXV
F)HUHTXHQWURWDWLRQRI9HQXVG(TXDOLW\RIWKHUDWHRIURWDWLRQDQGUHYROXWLRQ

%HIRUFIRUPXODWLQJWKHODZVRIPRWLRQ*DOLOHRGLVWLQJXLVKHGEHWZHHQPDWKHPDWLFDO
VWXG\DQGHPSLULFDOVWXG\+HILUVWWKHRUHWLFDOO\GHULYHGWKHURWDWLRQEHWZHHQGLVWDQFHV
DQGWLPHVIRUXQLIRPQO\DFFHOHUDWLQJPRWLRQE\,FWWLQJWKHEDOOUROODTXDUWHUWKHQKDOI
WKHQWZRWKLUGVDQGVRRQRIWKHOHQJWKRIWKHJURRYHDQGWKHQPHDVXUHGWKHWLPHVRQ
HDFKRFFDVLRQZKLFKKHUHSHDWHGKXQGUHGWLPHV+HFDOFXODWHGEDVHGRQWKLVVWXG\WKDW
WKH GLVWDQFH WUDYHOHG HTXDOHG WKH VTXDUH RIWKH WLPH RQ DOO RFFDVLRQ :KLFK RQH RIWKH
IROORZLQJFKDUDFWHUL]HV*DOLOHR
VPHWKRG"
D6SHFXODWLRQE7KHRUHWLFDODQDO\VLVF*HQHUDOL]DWLRQG6WDWLVWLFDODQDO\VLV5HDG
FDUHIXOO\ D EULFI VXPPHU\ RI RQH RI WKH LQYHVWLJDWLRQV RI 6KHUORFN +ROPHV :KLOH
LQYHVWLJDWLQJWKHPXUGHUVRI6WPJHUVRQDQG(QRFK'UHEEHUKHJRWLQWRFRQYHUVDWLRQZLWK
ϭϴ

IHOORZGHWHFWLYHVZKLFKUXQVDVIROORZV7KHODVWOLQN0\FDVHLVFRPSOHWH&RXOG
\RX OD\ \RXU KDQGV XSRQ WKRVH SLOOV $IWHU KH JRW WKRVH SLOOV +ROPHV FXW RQH RI WKHP
GLVVROYHGLWLQZDWHUDQGSODFHGLWLQIURQWRIWKHWHUULHU&RQWUDU\WRKLVH[SHFWDWLRQVWKH
YWLPDOVXUYLYHG7KRXJKGLVDSSRLQWHGDELWKHWKRXJKWIRUDZKLOHDQGWKHQFXWWKHRWKHU
SLOOGLVVROYHGLWDGGHGPLONDQGSODFHGEHIRUHWKHDQLPDO7KHPRPHQWLWOLFNHGWKHDQLPDO
GLHG7KRVHZHUHWKHSLOOVSUHVHQWDWWKHVFHQHVRIFULPH
:KLFKRQHRIWKHIROORZLQJDSWO\GHVFULEHGWKHPHWKRGZKLFKWKLVSDVVDJHLQGLFDWHV"
D,PDJLQDWLRQE([SHULPHQWF2EVHUYDWLRQG7KRXJKWH[SHULPHQW

7KHUH KDV EHHQ PXFK VSHFXODWLRQ FRQFHPLQJ WKH RULJLQ RI OXQDU FUDWHUV 2QH
K\SRWKHVLV LV WKDW WKH\ DUH WKHUHVXOW RI WKH LPSDFW RIKHDY\ PHWHRUV RQ WKH VXUIDFH RI
PRRQZKLOHVWLO,VRIW7KHPRVWSUREDEOHH[SODQDWLRQLVWKDWWKH\ZHUHSURGXFHGE\WKH
JDVHVOLEHUDWHGIURPWKHURFN\PDWWHU:KLOHVROLGLILFDWLRQZDVWDNLQJSODFHWKHVHJDVHV
DQG ZDWHU YDSRUV VWHDGLO\ HVFDSHG WKRXJK YLVFRXV VXUIDFH UDLVLQJ JLDQW EXEEOHV 7KH
UHDGHUFDQHDVLO\YLVXDOL]HWKHSURFHVVWKDWWRRNSODFHE\ZDWFKLQJIU\LQJRISDQFDNHV
:KLFKRQHRIWKHIROORZLQJDFWXDOO\KHOSVXV>RGHWHUPLQHWKHRULJLQRIOXQDUFUDWHUV"
D$QDORJ\ E6WXG\RIIRUHLJQERG\
F&RXUVHPLGHIIHFWUHODWLRQ G6SHFXODWLRQ

3HUKDSVWKHHDUOLHVWZRUNRI$UFKLPHGHVWKDWZHKDYHLVWKDWRQ
3ODQH(TXLOLEULXP

,Q WKLV VRPH IXQGDPHQWDO SULQFLSOHV RI PHFKDQLFV DUH VHW IRUWK DV ULJRURXV JHRPHWULF
SURSRVLWLRQV7KHZRUNRSHQVZLWKIXULRXVSRVWXODWH
(TXDOZHLJKWVDWHTXDOGLVWDQFHVDWH
LQ HTXLOLEULXP HTXDO ZHLJKWV DW XQHTXDO GLVWDQFHV DUH QRW LQ HTXLOLEULXP EXW LQFOLQH
WRZDUGVWKHZHLJKWDWWKHJUDWHUGLVWDQFH
$FFRUGLQJWRWKLVSDVVDJHZKLFKIDFWRUVGHWHUPLQHHTXLOLEULWXUQ"
DZHLJKW EGLVWDQFH
FZHLJKW GLVWDQFH GHTXDOLW\RIZHLJKWV GLVWDQFHV

$FFRUGLQJ>RGLHDERYHSDVVDJHZKLFKRQHRIWKHIROORZLQJYDOXHVFDQEHDVVLJQHGWR
WKHVWDWHPHQWXQHTXDOZHLJKWVDWHTXDOGLVWDQFHVDUHLQGLVHTXLOLEULXP
"
DWUXH EIDOVH FXQFHUWDLQGXQYHULILDEOH

$FFRUGLQJWRWKHDERYHSDVVDJHZKLFKRQHRIWKHIROORZLQJYDOXHVFDQEHDVVLJQHGWR
WKHVWDWHPHQWXQHTXDOGLVWDQFHVDUHLQGLVFTXLOLEULXP
"
DWUXH EIDOVH FXQFHUWDLQGXQYHULILDEOH

*UFJRU0HQGHOLQH[DPLQLQJWHDSODQWVIRXQGWZRVKDUSO\PDUNHGUDFHVWKHWDOODQG
WKHVKRUW+HH[SHULPHQWDOO\IHUWLOL]HGIORZHUVRIWDOOSODQWVZLWKSROOHQRIVKRUW7KHRII
VSULQJVZHUHWDOOSODQWV+HQH[WOHWWKHIORZHUVRIWKLVILUVWJHQHUDWLRQEHIHUWLOL]HGZLWK
WKHLU RZQ SROOHQ ,Q WKH IROORZLQJ JHQHUDWLRQ VKRUWQHVV UHDSSHDUHG 7DOOQHVV DQG
VKRUWQHVVZHUHGLVWULEXWHGQRWDWUDQGRPEXWLQDGHILQLWHFRQVWDQWDQGVLPSOHUDWLR
WKUHHGRPLQDQWWDOOVWRRQHUHFHVVLYHVKRUW
:KLFKRQFRIWKHIROORZLQJDSWO\GHVFULEHVWKH
GLVWULEXWLRQRIGRPLQDQWDQGUHFHVVLYHFKDUDFWHULVWLFV"
D6\VWHPDWLFEHTXDOLQWHUYDO FXQSUHGLFWDEOH GLPHJXODWLQWHUYDO

,W LV VDLG WKDW LQ KLV VWURQJO\ ZRUGHG UHDFWLRQ WR TXDQWXP 3K\VLFV (LQVWHLQ
UHPDUNV
*RGGRHVQRWSOD\GLFH
WRZKLFK%RKUDQRWKHUJUHDWSK\VLFLVWUHDFWHGVD\LQJ
'R QRW WHOO *RG ZKDW WR V\VWHP WKRXJK ZH FDQ NQRZ WKH SURSHUWLHV RI PDFURFRVPLF
REMHFWV
:KLFKRQHRIWKHIROORZLQJLVWKHIRFXVRIWKHLUGHEDWH"
ϭϵ

D WKHEHKDYLRXURI*RG
E SUREDELOLVWLFLQWHUSUHWDWLRQRIWKHEHKDYLRXURITXDQWXPREMHFW
F OLPLWVRIKXPDQNQRZOHGJH
G LUUHOHYDQFHRIPLFURFRVPLFREMHFW

$Q HIILFLHQW DQG GLHVHOLQGHSHQGHQW SXEOLF WUDQVSRUW V\VWHP LV HVVHQWLDO WR WKH
HFRQRPLF GHYHORSPHQW RI QDWLRQ 6XSSRVH WKDW WKH JRYHUQPHQW DGRSWV D SROLF\ WR WKDW
HIIHFWWKHQWKHUHLVDQRWKHUIDYRXUDEOFUHVXOW7KHSROOXWLRQRIHQYLURQPHQWLVUHGXFHGWR
DJUHDWHUH[WHQW%XWWKHQLWKDVWZRSURQJHGEDFNODVK7KHVDOHDQGFRQVHTXHQWO\WKH
SURGXFWLRQRIWZRDQGIRXUZKHHOHUVUHGXFHWRWKHPLQLPXPZKLFKLQXQQUHQGHUDODUJH
QXPEHURISHRSOHMREOHVV&DVKIORZWRWKHWUHDVXU\DOVRLVDYHUVHO\DIIHFWHG6XFKDVWHS
WKHUHIRUHLVVHOIGHIHDWLQJXQOHVVWKHJRYHUQPHQWHYROYHVDFRXQOHUVWPWHJ\WRQXOOLI\WKH
DGYHUVH HIIHFWV : KLFOU RQH RI WKH IRO ORZLQJ DFFXUDWHO\ SURMHFWV WKH RSLQLRQ RI DQ
LPDJLQDW\VSHDNHURUDXWKRUDVWKHFDVHPD\EHRIWKLVSDVVDJH"
D $EDQGRQ WKH LGHD RI HIILFLHQW DQG GLHVHOLQGHSHQGHQW SXEOLF WUDQVSRUW V\VWHP E
(QVXUHVXVWDLQHGFDVKIORZDQGFUHDWHEHXHUMRERSSRUWXQLWLHVE\LQYHQWLQJDQDOWHUQDWH
RUPRUHWKDQRQHDOWHPDWH
F 3XEOLFWUDQVSRUWV\VWHPVKDOOEHJLYHQXS
G 0DLQWDLQSURGXFWLRQDQGVDOHDWWKHVDPHOHYHOE\RIIHULQJLQFHQWLYHV

$ PRRW TXHVWLRQ WR EH FRQVLGHUHG LV ZKHWKHU GHPRFUDWLF IRUP RI JRYHUQPHQW LV D
ERRQRUEDQHQRPDWWHUZKDW/LQFROQPLJKWRUPLJKWQRWKDYHVDLG5DWKHUKLVPRVWLQ"
IDPRXVDGDJH
E\WKHSHRSOHIRUWKHSHRSOHDQGRIWKHSHRSOH
PLVVHVWKHPRVWSHUWLQHQW
TXHVWLRQZKLFKDWWLWXGHZRUNVEHKLQGZKHQDSHUVRQGHFODUHVWKDWKHLVDRUWKHULJKW"
FDQGLGDWHWRVHUYHWKHSHRSOHDQGGRHVQRWKHVLWDWHWRFRQWHVWDQGILJKWWRRWKDQGQDLO
WKH HOHFWLRQ DQ HXSKHPLVP IRU EDWWOH ZLWK RU ZLWKRXW EXOOHWV $GPLWWHGO\ WKH FRYHUW
DWWLWXGHLVGLIIHUHQWIURPRYHUWDWWLWXGH+DUGO\DQ\RQHFRQWHVWVWKHHOHFWLRQXQZLOOLQJO\
$FRQWHVWDQWLVQRWSHUVXDGHGE\DQ\RQHEXWGULYHQE\KLVRZQSDVVLRQVDQGGXELRXV
PRWLYHV&RQWUDVWWKLVSLFWXUHZLWK6RFUDWHV
YHUVLRQQRKRQHVWPDQZLOOLQJO\WDNHVWLSWKH
MRE RI UXOHU ,I DW DOO KH DFFHSWV KH GRHV VR IRU IHDU RI EHLQJ UXOHG E\ RQH PDGH /LS RI
LQIHULRULQH//,&,WLVEH\RQGHYHQWKHZLOGHVWLPDJLQDWLRQWRH[SHFWDQKRQHVWSHUVRQWR
FRQWHVWWKHHOHFWLRQ$VVXPLQJWKDWHYHU\VWDWHPHQWLVWUXHLGHQWLI\IURPDPRQJWKHJLYHQ
DOWHUQDWLYHVWKHRQHZKLFKVWULFWO\IROORZVIURPWKHSDVVDJH
D 1RDVVHVVPHQWRUDSSUDLVDORIGHPRFUDF\LVSRVVLEOH
E /LQFROQ DQG 6RFUDWHV DUH WDONLQJ GLIIHUHQWO\ F
$FWXDOO\6RFUDWHVVFRUHVRYHU/LQFROQRQWKLVLVVXH
G5XOHUVFDQEHKRQHVW

$FFRUGLQJ WR WKH DERYH SDVVDJH ZKLFK RQH RI WKH IROORZLQJ FRUUHFWO\ GLIIHUHQWLDWHV
/LQFROQ
VDQG6RFUDWHV
DQDO\VHV"
DWKHQDWXUHRIGHPRFUDF\EPHULWVDQGGHPHULWVRISROLWLFLDQ
F4XDOLWLHVRIHOFFWLRQGGLIIHUHQFHLQPLQGVHWRIUHVSHFWLYHPHQ

0DQ\HQYLURQPHQWDOLVWVHLWKHUDGRSWGRXEOHVWDQGDUGRUGRQRWNQRZZKDWWKH\DUH
WDONLQJDERXW$SURUDJRQLVWRIHQYLURRPHQWIRUREYLRXVUHDVRQVRXJKWQRWWREDWIRU
DQ\W\SHRISURJUHVVEHFDXVHSURJUHVVZLWKRXWPHGGOLQJZLWKQDWXUHLVDP\WK%XWQRQH
FDQKDYHZLWKRXWVFLHQWLILFDQGWHFKQRORJLFDODGYDQFHZKLFKKDVVLQJXODUO\PDGHSURJUHVV
SRVVLEOH)XUWKHUPRUHHQYLURQPHQWLQFOXGHVQRWMXVWIRUHVWZHDOWKDQGKLOOVEXWDQLPDO
ZHDOWK DOVR $Q KRQHVW HQYLURQPHQWDOLVW LV REOLJHG WR DGGUHVV WKH IROORZLQJ TXHVWLRQV
)LRVOVKRXOGPDQLQWKHLQWHUHVWRIK\JLHQHNLOODQ\OLYLQJEHLQJEHLWDQLQVHFWSXUSRUWHG
WREHKDPUIXOUVWUD\GRJV"$IWHUDOOWKHZRUOGGRHVQRWEHORQJWRPDQDORQH
ϮϬ

:KLFKRQHRIWKHIROORZLQJUXQVFRXQWHUWRWKHVSLULWRIWKHSDVVDJH"
D ,Q WKH LQWHUHVW RI KHDOWK DQG FOHDQOLQHVV RXU VXUURXQGLQJV PXVW EH IURP GLVHDVH
VSUHDGLQJEDFWHULD
E 1RQYLROHQFHDVDPRUDOSULQFLSOHH[WHQGVWRDOOOLYLQJFUHDWXUHV
F 9HJHWDULDQIRRGLVLGHDOWRDOOPHQ
G 0DQVKRXOGSURWHFWKLVHQYLURQPHQWEHFDXVHKHKDVWROLYH

'RHV RXU VRFLHW\ QHHG UHVHUYDWLRQ LQ -RE" %HIRUH ZH GHIHQG UHVHUYDWLRQ ZH PXVW
FRQVLGHUVRPHLVVXHV:K\GRZHQHHGUHVHUYDWLRQ"2EYLRXVO\UHVHUYDWLRQLVUHTXLUHGWR
OLIW WKH GRZQWURGGHQ DQG WKHUHE\ DFKLHYH HTXDOLW\ +RZ GR \RX DFKLHYH WKLV" (YHU\
LQGLYLGXDOZLWKRXWH[FHSWLRQKDVDULJKWWRUHFHLYHTXDOLW\HGXFDWLRQ,WLVPRUHVRLQWKH
FDVHRIGRZQWURGGHQSHRSOH2QO\DJRRGQDWXUHGPHULWRULRXVWHDFKHUFDQLPSDUWTXDOLW\
HGXFDWLRQ6XSSRVHWKDWDSHUVRQZKRLVQHLWKHUJRRGQXUWXUHGQRUPHULWRULRXVEHFRPHV
DWHDFKHUWKDQNVWRUHVHUYDWLRQV\VWHP7KHQJHQHUDWLRQVRIVWXGHQWVVXIIHU
6XSSRVH WKDW WKHUH LV VRPH PHULW LQ WKLV DUJXPHQW 7KHQ ZKLFK RI WKH IROORZLQJ DSWO\
GHVFULEHVWKHIDOORXWRIKLVDUJXPHQW"
D 5HVHUYDWLRQLVLQGLYLGXDOFHQWULFEXWQRWJURXSFHQWULF
E 5HVHUYDWLRQLQDWOHDVWRQHILHOGLVVHOIGHIHDWLQJ
F 7KHDUJXPHQWLVELDVHG
G (GXFDWLRQLVQRWUHTXLUHGWRXSOLIWWKHGRZQWURGGHQ

8QGHU WKH VDPH IDFW VLWXDWLRQ DV DERYH ZKLFK RQH RI WKH IROORZLQJ KHOSV \RX WR
FLUFXPYHQWWKHVLWXDWLRQ"
D5HSODFHHGXFDWLRQZLWKPRQH\DQGPDNHSRRUULFKE
7RDFKLHYHHTXDOLW\HQFRXUDJHLQWHUFDVWHPDUULDJH
F 2QO\GRZQWURGGHQSHRSOHVKRXOGIRUPWKHJRYHUQPHQW
G ,GHQWLI\JRRGQDPUHGDQGPHULWRULRXVSHRSOHZLWKLQGRZQWURGGHQJURXS>RPDNHWKHP
WHDFKHUV

6(&7,219/(*$/5($621,1*
3$57²$
,QVWUXFWLRQ (DFK TXHVWLRQ FRQWDLQV VRPH EDVLF SULQFLSOHV PLG IDFW VLWXDWLRQ LQ ZKLFK
WKHVH EDVLF SULQFLSOHV KDYH >R EH DSSOLHG $ OLVW RI SUREDEOH GHFLVLRQV DQG UHDVRQV DUH
JLYHQ <RX KDYH WR FKRRVH D GHFLVLRQ ZLWK UHDVRQ VSHFLILHG E\ VKDGLQJ WKH DSSURSULDWH
DQVZHULQWKHVSDFHSURYLGHGIRULWRQWKH205DQVZHUVKFFW
0DUNV(DFKTXHVWLRQFDUULHVWKUHHPDUNV 7RWDOPDUNV
3ULQFLSOHV,2QWKHGHDWKRIKXVEDQGWKHZLGRZVKDOOLQKHULWWKHSURSHUW\RIKHU
GHFHDVHGKXVEDQGDORQJZLWKFKLOGUHQHTXDOO\
$ZLGRZFDQQRWFODLPWKHSURSHUW\RIWKHGHFHDVHGLIRQWKHGDWHZKHQ
WKHTXHVWLRQRIVXFFHVVLRQRSHQVVKHKDVPDUULHG
$ IHPDOH DFTXLULQJ SURSHUW\ LQ DQ\ ZD\ KDV WKH DEVROXWH WLWOH WR WKH
SURSHUW\
$SSO\GLHDERYHWKUHHSULQFLSOHVDQGGHFLGHWKHFDVHRIGLHIROORZLQJIDFWVLWXDWLRQ)DFWV
:KHQ6XGKLUGLHGKHKDGUGVKDUHRIWKHIDPLO\SURSHUW\ZKLFKWLOHWKUHHEURWKHUV
5XGKLU6XGKLUDQG<DVXLQKHULWHGIURPWKHLUIDWKHU%

6XGKLUGLHGRQ6HSWHPEHUUGZLWKRXWKDYLQJDQ\LVVXH7KHZLGRZRI6XGKLU0V
:LQUHPDUULHGRQ-DQXDU\O

6XGKLUDQG<DVXUHIXVHG
:LQ
WKHVKDUHIURP6XGKLU
VSRUWLRQZKHQ:LQFODLPHGWKHHQWLUH
SURSHUW\EHORQJLQJWR6XGKLURQ-DQXDU\
Ϯϭ

6HOHFW \RXU GHFLVLRQ IURP WKH SRVVLEOH GHFLVLRQV JLYHQ LQ WKH OLVW $QG WKH DSSURSULDWH
UHDVRQIURPWLOHLQGLFDWHUHDVRQVJLYHQLQOLVW,,JLYHQEHORZ/LVW,'HFLVLRQV
D:LQFDQQRWLQKHULWWKHSURSHUW\RI6XGKLUE:LQFDQLQKHULWWKHSURSHUW\RI6XGKLU
/LVW,,5HDVRQV
L:LGRZQRWEHORQJWRWKHIDPLO\LL:LQZDVUHPDUULHG
LLL+HUFODLPZDVRQWKHGDWHRI6XGKLU
VGHDWK LY +HU FODLP VXEPLWWHG DIOHU VKH ZDV
UHPDUULHG
<RXUGHFLVLRQDQGUFDVRQ
6KDGHWKHULJKWGHFLVLRQZLWKUHDVRQIURPWKHIROORZLQJ
DDL EDLL FELLL GELY
3ULQFLSOHV,IDSHUVRQFRPPLWVDQDFWE\ZKLFKGHDWKLVFDXVHGWRDQRWKHUSHUVRQ
DQGWKHDFWLVGRQHZLWKWKHLQWHQWLRQRIFDXVLQJGHDWKWKHSHUVRQLV
OLDEOHIRUPXUGHU
$SHUVRQKDVDULJKWRIVHOIGHIHQVHWRWKHH[WHQWRIFDXVLQJGHDWKWRDQRWKHUSURYLGHG
KHDSSUHKHQGVGHDWKE\WKHDFWRIWKHOHWWHU)DFWV6KXYDZHQWWRDKDUGZDUHVKRSRZQHG
E\$QXS%DUJDLQLQJRQVRPHLWHPWRDOWHUDWLRQEHWZHHQWKHWZRDQG6KXYDSLFNHGXSD
VKDUSREMHFWDQGKLWDW0XS:KHQ0XSVWDUWHGEOHHGLQJKLVZLIH0ULGXODLQWHUYHQHGDQG
VKHZDVDOVRKLWE\6KXYDDQGVKHEHFDPHXQFRQVFLRXV)LQGLQJKLPVHOIWRDOO\FRPHUHG
$QXSGHOLYHUHGDVHYHUHEORZWR6OPYDZLWKDVKDUSREMHFW6KXYDGLHGLQVWDQWO\

3RVVLEOHGHFLVLRQV
D $QXSPXUGHUHG6KXYD
E $QXSNLOOHG6KXYDZLWKWKHLQWHQWLRQRINLOOLQJWRVDYHKLPVHOIDQGKLVZLIH
F $QXSNLOOHG6KXYDZLWKRXWDQ\LQWHQWLRQWRGRVRMXVWWRVDYHKLPVHOIDQGKLVZLIH

3UREDEOHUHDVRQVIRUWKHGHFLVLRQ
L ,IDSHUVRQNLOOVDQRWKHULQVWDQWO\RQWKHVSRWWKHLQWHQWLRQWRNLOOLV
REYLRXV
LL $QXSXVHGIRUFHDSSUHKHQGLQJGHDWKRIKLPVHOIDQGKLVZLIHLLL $QXS
XVHGGLVSURSRUWLRQDWHIRUFHLY 7KHUHZDVQRWKLQJWRVKRZWKDW6KXYD
ZDQWHGWRNLOO$QXSRUKLVZLIH

<RXUGHFLVLRQZLWKWKHUHDVRQ
DDL EDLLL FFLL GELY

3ULQFLSOHV &RQVXPDEOH JRRGV ZKLFK DUH QRW ILW IRU FRQVXPSWLRQ DUH QRW
PDUNHWDEOH
$FRQVXPHUVKDOOQRWVXIIHURQDFFRXQWRIXQPDUNHWDEOHJRRGV
$VHOOHULVOLDEOHIRUNQRZLQJO\VHOOLQJXQPDUNHWDEOHJRRGV
$PDQXIDFWXUHUVKDOOEHOLDEOHIRUWKHTXDOLW\RIKLVSURGXFWV
)DFWV5DPERXJKWD&RFD&RODERWWOHIURP6KDPD·VVKRS%DFNDWKRPHWKHVHUYHURSHQHG
WKHERWWOHDQGSRXUHGWKHGULQNLQWRWKHJODVVHVRI5DPDQGKLVIULHQG7RP$V7RPVWDUWHG
GULQNLQJKHIHOWLQLWDWLRQLQKLVWKURDW,PPHGLDWHO\5DPDQG7RPWRRNWKHVDPSOHWRWHVW
DQGIRXQGQLWULFDFLGLQWKHFRQWHQW5DPILOHGDVXLWDJDLQVW6KDQLD&RFD&ROD&RPSDQ\
DQGWKHERWWOHU.LVKHQDQG&R
6XJJHVWHG'HFLVLRQ
D5DPFDQQRWJHWFRPSHQVDWLRQE7RPFDQQRWJHWFRPSHQVDWLRQ
F%RWK5DPDQG7RPFDQJHWFRPSHQVDWLRQ

6XJJHVWHG5HDVRQ
ϮϮ

L 6KDPDGLGQRWNQRZWKHFRQWHQWVRIVFDOHGERWWOHV
LL 5DWDGLGQRWDFWXDOO\VXIIHUWKRXJKKHERXJKWWKHERWWOH
LLL 7RPGLGQRWEX\WKHERWWOHLY &RFD&RODFRPSDQ\LVUHVSRQVLEOHVLQFHLWVXSSOLHG
WKHFRQFHQWUDWH
Y .LVKHQ &RLVUHVSRQVLEOHVLQFHLWDGGHGZDWHUVXJDUHWFDQGVHDOHGWKHERWWOH
YL 6KDPDLVUHVSRQVLEOHIRUVHOOLQJWKHGHIHFWLYHSURGXFW
DDL EEYL HHY GHLY

3ULQFLSOHV,I$LVDVNHGWRGRVRPHWKLQJE\%%LVUHVSRQVLEOHIRUWKHDFWQRW
$
,I$ZKLOHDFWLQJIRU%FRPPLWVDZURQJ$LVUHVSRQVLEOHIRUWKHZURQJ
QRW%
,I $ LV DXWKRUL]HG WRGR VRPHWKLQJ IRU %EXW LQ WKH QDPH RI$ZLWKRXW
GLVFORVLQJ%
VSUHVHQFHERWK$DQG%PD\EHKHOGOLDEOH

)DFWV6RPXFRQWUDFWHGZLWK$PDUZKHUHXQGHU$PDUZRXOGEX\DSXPSVHWWREHXVHG
LQ6RPX
VIDUP6XFKDSXPSVHWZDVLQVKRUWVXSSO\LQWKHPDUNHW*XODEDGHDOHUKDG
VXFK D SXPSVHW DQG KH UHIXVHG WR VHOO LW WR $PDU $PDU WKUHDWHQHG *XODE RI VHULRXV
FRQVHTXHQFHVLIKHIDLOVWRSDUWZLWKWKHSXPSVHW*XODEILOHGDFRPSODLQWDJDLQVW$PDU
3URSRVHGGHFLVLRQ
D $PDUDORQHLVOLDEOHIRUWKHZURQJWKRXJKKHDFWHGIRU6RPX
E $PDULVQRWOLDEOHIRUWKHZURQJWKRXJKKHLVERXQGE\WKHFRQWUDFWZLWK6RPX
F 6RPXLVERXQGE\WKHFRQWUDFWDQGOLDEOHIRUWKHZURQJ
G %RWK6RPXDQG$PDUDUHOLDEOHIRUWKHZURQJ
6XJJHVWHGUHDVRQV
L $PDUFRPPLWWHG WKHZURQJ ZKLOH DFWLQJ IRUWKHEHQHILW IRU 6RPX LL $PDU FDQQRWGR
ZKLOHDFWLQJIRU6RPXVRPHWKLQJZKLFKKHFDQQRWGRZKLOHDFWLQJIRUKLPVHOILLL%RWK
$PDU DQG 6RPX DUH OLDEOH VLQFH WKH\ DUH ERXQG E\ WKH FRQWUDFW LY 6RPX KDV WR EH
UHVSRQVLEOHIRUWKHDFWRI$PDUFRPPLWWHGIRU6DQWD
VEHQHILW

DD EDLL HHLLL GGLY

3ULQFLSOHVO7KHRZQHURIDODQGKDVDEVROXWHLQWHUHVWRQWKHSURSHUW\LQFOXGLQJWKH
FRQWHQWVRYHUDQGXQGHUWKHSURSHUW\
:DWHUIORZLQJEHORZ\RXUODQGLVQRW\RXUVWKRXJK\RXFDQXVHLW
$Q\FRQVWUXFWLRQRQ\RXUODQGEHORQJVWR\RX
$OO PLQHUDO UHVRXUFHV EHORZ WKH ODQG EHORQJV WR WKH 6WDWH )DFWV
7KHUHLVDVXEWHUUDQHDQZDWHUIORZXQGHU6XUHVK
VODQGVXUIDFH6XUHVKFRQVWUXFWHGD
KXJHUHVHUYRLUDQGGUHZDOOVXEWHUUDQHDQZDWHUWRWKHUHVHUYRLU$VDUHVXOWWKHZHOOVRI
DOO DGMDFHQW SURSHUW\ RZQHUV KDYH JRQH GU\ 7KH\ GHPDQGHG WKDW HLWKHU 6XUHVK PXVW
GHPROLVKWKHUHVHUYRLURUVKDUHWKHUHVHUYRLUZDWHUZLWKWKHP

3URSRVHG'HFLVLRQ
D 6XUHVKQHHGQRWGHPROLVKWKHUHVHUYRLU
E 6XUHVKKDVWRGHPROLVKWKHUHVHUYRLU
F 6XUHVKKDVWRVKDUHWKHZDWHUZLWKKLVQHLJKERXUVG7KH*RYHQQQHQWFDQWDNHRYHU
WLOHUHVHUYRLU

3RVVLEOHUHDVRQV
Ϯϯ

L:DWHUFDQQRWEHFDSWXUHGE\RQHSHUVRQIRUKLVSHUVRQDOXVHLL
7KHJRYHUQPHQWPXVWHQVXUHHTXLWDEOHGLVWULEXWLRQRIZDWHU
LLL:KDWHYHULVXQGHU6XUHVOLVODQGPD\EHXVHGE\KLPLY
6XUHVKKDVWRUHVSHFWWKHULJKWVRIRWKHUVUHJDUGLQJZDWHU
DLLLEL FLYGLL
3ULQFLSOHV$QHPSOR\HUVKDOOEHOLDEOHIRUWKHZURQJVFRPPLWWHGE\KLVHPSOR\HHVLQ
WKHFRXUVHRIHPSOR\PHQW
7KLUG SDUWLHV PXVW H[HUFLVH UHDVRQDEOH FDUH WR ILQG RXW ZKHWKHU D
SHUVRQLVDFWXDOO\DFWLQJLQWKHFRXUVHRIHPSOR\PHQW

)DFWV 1DQGDQ ZDV DSSRLQWHG E\ 6\QGLFDWH %DQN WR FROOHFW VPDOO VDYLQJV IURP LWV
FXVWRPHUVSUHDGRYHUWKHGLIIHUHQWSODFHVRQGDLO\EDVLV1DJDPDQDDKRXVHPDLGZDV
RQH RI VXFKFXVWRPHUV PDNLQJXVH RI 1DQGDQ
V VHUYLFH 6\QGLFDWH%DQNDIWHU DFRXSOH
RI\HDUVWHUPLQDWHG1DQGDUL·VVHUYLFH1DJDPDQDXQDZDUHRIWKLVIDFWZDVKDQGLQJRYHU
KHUVDYLQJVWR1DQGDQZKRPLVDSSURSULDWHGWKHP1DJDPDQDUHDOL]HGWKLVQHDUO\DIWHU
WKUHH PRQWKV ZKHUH VKH ZHQW WR WKH %DQN WR ZLWKGUDZ PRQH\ 6KH ILOHG D FRPSODLQ
DJDLQVWEDQN

3RVVLEOHGHFLVLRQ
D6\QGLFDWH%DQNVKDOOEHOLDEOHWRFRPSHQVDWH1DJDPPDE
6\QGLFDWH%DQNVKDOOQRWEHOLDEOHWRFRPSHQVDWH1DJDPPD
F1DJDPPDKDVWREODPHKHUVHOIIRUKHUQHJOLJHQFH

3RVVLEOH5HDVRQ
L 1DQGDQZDVQRWDFWLQJLQWKHFRXUVHRIHPSOR\PHKWDIWHUWKH
WHUPLQDWLRQRIKLVVHUYLFH
LL$SHUVRQFDQQRWEODPHRWKHUVIRUKLVRZQQHJOLJHQFHLLL1DJDPPD
ZDVHQWLWOHGWREHLQIRUPHGE\WKHEDQNDERXW1DQGDQLY7KH%DQN
LVHQWLWOHGWRH[SHFWLWVFXVWRPHUVWRNQRZDFWXDOSRVLWLRQ

<RXUGLFLVLRQZLWKWKHUHDVRQ
DEL EFLL FDLLL GELY

3ULQFLSOHV$PDVWHUVKDOOEHOLDEOHIRUWKHIUDXGXOHQWDFWVRIKLVVHUYDQWVFRPPLWWHG
LQWKHFRXUVHRIHPSOR\PHQW
:KHWKHU DQ DFW LV FRPPLWWHG LQ WKH FRXUVH RI HPSOR\PHQW KDV WR
EHMXGJHGLQWKHFRQWH[WRIWKHFDVH
%RWKPDVWHUDQGWKLUGSDUWLHVPXVWH[HUFLVHUHDVRQDEOHFDUHLQWKLV
UHJDUG

)DFWV5DPD%KDLZDVDQXQHGXFDWHGZLGRZDQGVKHRSHQHGD6%DFFRXQWZLWK6\QGLFDWH
%DQNZLWKWKHKHOSRIKHUQHSKHZE\QDPH.HVKDYZKRZDVDWWKDWWLPHZRUNLQJDVDFOHUN
LQWKHEDQN.HKVDYXVHGWRGHSRVLWWKHPRQH\RI5DPD%KDLIURPWLPHWRWLPHDQGJHW
HQWULHVGRHQLQWKHSDVVERRN$IWHUD\HDURUVR.HKVDYZDVGLVPLVVHGIURPWKHVHUYLFH
E\WKHEDQN%HLQJXQDZDUHRIWKLVIDFW5DPDEKDLFRQWLQXHGWRKDQGRYHUKHUVDYLQJV
WR KLP DQG .HVKDY PLVDSSURSULDWHG WKHP 5DPD %KDL UHDOL]HG WKLV RQO\ ZKHQ .HVKDY
GLVDSSHDUHGIURPWKHVFHQHRQHGD\DQGVKHVRXJKWFRPSHQVDWLRQIURPWKHEDQN
3RVVLEOHGHFLVLRQV
Ϯϰ

D 6\QGLFDWH%DQNVKDOOEHOLDEOHWRFRPSHQVDWH5DPD%KDL
E 6\QGLFDWH%DQNVKDOOQRWEHOLDEOHWRFRPSHQVDWH
5DPD%KDL
F 5DPD%KDLFDQQRWEODPHRWKHUVIRUKHUQHJOLJHQFH

3RVVLEOH5HDVRQV
L .HVKDYZDVQRWDQHPSOR\HHRIWKHEDQNZKHQWKHIUDXGZDVFRPPLWWHG
LL7KH%DQNZDVQRWDZDUHRIWKHVSHFLDODUUDQJHPHQWEHWZHHQ5DPD%KDLDQG.HVKDY
LLL,WLVWKH%DQN
VGXW\WRWDNHFDUHRIYXOQHUDEOHFXVWRPHUVLY5DPDEKDLVKRXOG
KDYHFKHFNHGDERXW.HVKDYLQKHURZQLQWHUHVW
DDLLL EHLY HELL GEL
3ULQFLSOHV$SHUVRQLVOLDEOHIRUQHJOLJHQFHLIKHIDLOVWRWDNHFDUHRIKLVQHLJKERXU
V
LQWHUHVW
$QHLJKERXU LV DQ\RQH ZKRVH LQWHUHVWV VKRXOG KDYH EHHQ IRUHVHHDEOH E\ D UHDVRQDEOH
PDQZKLOHFDUU\LQJRQKLVDFWLYLWLHV

)DFWV$FULFNHWPDWFKZDVJRLQJRQLQDFORVHGGRRUVWDGLXP$FGFNHWIDQZKRFRXOGQRW
JHWLQWRWKHVWDGLXPZDVZDWFKLQJWKHJDPHE\FOLPELQJXSDQHDUE\WKUHHDQGVLWWLQJ
WKHUH7KHFULFNHWEDOOLQWKHFRXUVHRIWKHJDPHZHQWRXWRIWKHVWDGLXPDQGKLWKLVSHUVRQ
DQGLQMXUHGKLP+HILOHGDVXLWDJDLQVWWKHRUJDQL]HUV

3RVVLEOHGHFLVLRQV
D 7KHRUJDQL]HUVDUHOLDEOHWRFRPSHQVDWHWKHLQMXUHGSHUVRQ
E WKHRUJDQL]HUVDUHQRWOLDEOHWRFRPSHQVDWHWKHLQMXUHGSHUVRQ
F 7KHLQMXUHGSHUVRQVKRXOGKDYHDYRLGHGWRSODFHZKHUHKHPLJKWEHKLWE\WKHFULFNHW
EDOO

3RVVLEOHUHDVRQ
L7KHRUJDQL]HUVDUHUHVSRQVLEOHIRUWKHSHRSOHLQVLGHWKHVWDGLXPLL7KHRUJDQL]HUVFRXOG
QRWKDYHIRUHVHHQVRPHERG\ZDWFKLQJWKHJDPHE\FOLPELQJXSDWUHH
LLL$SHUVRQFUD]\DERXWVRPHWKLQJPXVWSD\WKHSULFHIRUWKDWLY7KH
RUJDQL]HUVVKDO,EHOLDEOHWRHYHU\ERG\OLNHO\WRZDWFKWKHJDPH

DDLY EDLLL HELL GHL

3ULQFLSOHV:KHQDSHUVRQXQODZIXOO\LQWHUIHUHVLQWKHFKDWWHORIDQRWKHUSHUVRQE\
ZKLFKWKHODWWHULVGHSULYHGRILWVXVHWKHIRUPHUFRPPLWVWKHWRUWRI
FRQYHUVLRQ
1RERG\VKDOOHQULFKKLPVHOIDWRWKHUVH[SHQVH

)DFWV$SDWLHQWVVXIIHULQJIRUPVWRPDFKDLOPHQWDSSURDFKHGDWHDFKLQJKRVSLWDO+HZDV
GLDJQRVHG DV VXIIHULQJ IURP DSSHQGLFLWLV DQG KLV DSSHQGL[ ZDV UHPRYHG +H EHFDPH
DOULJKW7KHKRVSLWDOKRZHYHUIRXQGVRPHXQLTXHFHOOVLQWKHDSSHQGL[DQGXVLQJWKHFHOO
OLQHV WKHUHRI LW GHYHORSHG GUXJV RI HQRUPRXV FRPPHUFLDO YDOXH :KHQ WKH HUVWZKLOH
SDWLHQWFDPHWRNQRZDERXWLWKHFODLPHGDVKDUHLQWKHSURILWPDGHE\WKHKRVSLWDO

3RVVLEOH'HFLVLRQV
D 7KHKRVSLWDOQHHGQRWVKDUHLWVSURILWVZLWKWKHSDWLHQWV
E 7KHKRVSLWDOPD\VKDUHLWVSURILWVRQH[JUDWLDEDVLV
Ϯϱ

F 7KHKRVSLWDOVKDOOVKDUHLWVSURILWVZLWKWKHSDWLHQWV

3RVVLEOH5HDVRQ
L 7KHSDWLHQWIDUIURPEHLQJGHSULYHGRIWKHXVHRIKLVDSSHQGL[DFWXDOO\EHQHILWHG
E\LWVUHPRYDO
LL 7KHKRVSLWDOLQVWHDGRIWKURZLQJDZD\WKHDSSHQGL[FRQGXFWHGIXUWKHUUHVHDUFKRQ
LWRQLWVRZQDQGWKHGHYHORSPHQWRIGUXJZDVWKHUHVXOWRILWVRZQHIIRUWLLL7KHKRVSLWDO
FRXOGQRWKDYHDFKLHYHGLWVVXFFHVVZLWKRXWWKDWDSSHQGL[EHORQJLQJWRWKHSDWLHQW
Y (YHU\ERG\PXVWFDUHIRUDQGVKDUHZLWKRWKHUV

DDL EDLL HHLLL GHLY

3ULQFLSOHV &RS\LQJLQFOXGLQJDWWHPSWWRFRS\LQH[DPLQDWLRQVLVDVHULRXVRIIHQFH
2QHVKDOOQRWWDNHDQ\XQDXWKRUL]HGPDWHULDOVLQWRWKHH[DPLQDWLRQ
KDOO

)DFWV 5RKLQL DQ H[DPLQHH LQ 38& ZDV WKRURXJKO\ FKHFNHG ZKLOH HQWHULQJ LQWR WKH
H[DPQDWLRQKDO,6KHGLGQRWKDYHDQ\WKLQJRWKHUWKDQDXWKRUL]HGPDWHULDOVVXFKDVSHQ
LQVWUXPHQWER[HWFZLWKKHU$VVKHZDVZULWLQJKHUSDSHUDQLQYLJLODWRUIRXQGFORVHWR
KHUIHHWDEXQFKRIFKLWV7KHLQYLJLODRWRUVRQVFUXWLQ\IRXQGWKDWWKHFKLWV
FRQWDLQHGDQVZHUVWRWKHSDSHUEHLQJZULWWHQE\5RELQL5RKLQ·VDQVZHUWDOOLHGZLWKWKH
DQVZHUVLQWKHFKLWV$FKDUJHRIFRS\LQJZDVOHYHOHGDJDLQVW5RKLQL
3UREDEOH'HFLVLRQ
D 5RKLQLVKDOOEHSXQLVKHGIRUFRS\LQJ
E 5RKLQLFDQQRWEHSXQLVKHGIRUFRS\LQJ

3UREDEOH5HDVRQV
L 6RPHWKLQJO\LQJQHDUWKHIHHWGRHVQRWPHDQWKDWWKHSHUVRQLVLQSRVVHVVLRQRIWKDW
WKLQJ
LL 7KH IDFW WKDW VKH ZDV FKHFNHG WKRURXJKO\ ZKLOH JHWWLQJ LQWR WKH KDOO PXVW EH
FRQFOXVLYH
LLL 6LPLODULWLHVEHWZHHQKHUDQVZHUVDQGWKHDQVZHUVLQWKHFKLWLQGLFDWHWKDWVKHXVHG
WKRVHFKLWVLY$IWHUXVLQJWKRVHFKLWVVKHPXVWKDYHIDLOHGWRGLVSRVHRIWKHPSURSHUO\

DDLLL EDLY FELLL GEL

3$57%

,QVWUXFWLRQ )URP WKH IRXU DQVZHUV JLYHQ VKDGH WKH DSSURSULDWH DQVZHU LQ WKH VSDFH
SURYLGHGIRULWRQWKH205DQVZHUVKHHW


$OOFRQWUDFWVDUHDJUHHPHQWV$OODJUHHPHQWVDUHDFFHSWHGRIIHUV:KLFKRIWKHIROORZLQJ
GHULYDWLRQLVFRUUHFW"
D$OODFFHSWHGRIIHUVDUHFRQWUDFWV E$OODJUHHPHQWVDUHFRQWUDFWV
F$OOFRQWUDFWVDUHDFFHSWHGRIIHUVG1RQHRIWKHDERYH
Ϯϲ

1RPLQRUFDQHQWHULQWRDFRQWUDFWRIZRUN:RUNLQJLQDVKRSFDQEHGXQHRQO\E\D
FRQWUDFW:KLFKRIWKHIROORZLQJGHULYDWLRQLVFRUUHFW"
D $PLQRUFDQQRWZRUNLVDVKRS
E $VKRSFDQQRWFRQWUDFWZLWKDPLQRU
F 7KHUHFDQQRWEHDFRQWUDFWWRZKLFKPLQRULVDSDUW\
G 1RQHRIWKHDERYH

$OOPRWRUVYHKLFOHVDUHUHTXLUHGWRKDYHWKLUGSDUW\LQVXUDQFH$Q\YHKLFOHQRWXVLQJ
PHFKDQLFDOGHYLFHLVQRWDPRWRUYHKLFOH
:KLFKRIWKHIROORZLQJLVFRUUHFWGHULYDWLRQIURPWKHDERYH"

D $OO7KLUG3DUW\,QVXUDQFHVUHODWHWRPRWRUYHKLFOHV
E 9HKLFOHVQRWXVLQJPHFKDQLFDOGHYLFHQHHGQRWKDYH7KLUG3DUW\,QVXUDQFH
F $OOYHKLFOHVPXVWKDYH7KLUG3DUW\,QVXUDQFH
G 1RQHRIWKHDERYH

$FRQWUDFWFRQWUDYHQLQJSXEOLFSROLF\LVYRLG7KHUHFDQQRWEHDJHQHUDOGHILQLWLRQRI
SXEOLFSROLF\:KLFKRIWKHIROORZLQJLVFRPHWGHULYDWLRQIURPWKHDERYH"
D 7KHUHFDQQRWEHDJHQHUDOGHIXWLWLRQRIFRQWUDFW
E 6LQFHSXEOLFSROLF\LVXQFHUWDLQFRQWUDFWLVDOVRXQFHUWDLQ
F 7KHLPSDFWRISXEOLFSROLF\RQFRQWUDFWLVWREHMXGJHGLQLQGLYLGXDOFDVHV
G 1RQHRIWKHDERYH

,QWHUQDWLRQDO ODZ LV WKH ODZ EHWZHHQ VRYHUHLJQ VWDWHV $ VRYHUHLJQ LV WKH VXSUHPH
DXWKRULW\QRWERXQGE\OHJDOFRQVWUDLQWV
:KLFKRIWKHIROORZLQJLVFRUUHFWGHULYDWLRQIURPWKHDERYH"
D ,QWHUQDWLRQDOODZLVQRWODZELQGLQJQRWKHVRYHUHLJQVWDWHV
E ,QWHUQDWLRQDOODZLVRQO\DSRVLWLYHPRUDOLW\
F ,QWHUQDWLRQDOODZLVLQWKHQDWXUHRISDFWEHWZHHQVRYHUHLJQVWDWHVG1RQHRIWKHDERYH

Ϯϳ

7LPH30WR30+RXUV
$GPLW&DUG1RBBBBBBBBBBBBBBBBBBBBBBB
205$QVZHU6KHHW1R 7RWDO0DUNV

,16758&7,21672&$1','$7(6

%HIRUHXVLQJWKH4XHVWLRQ%RRNOHWDQG205$QVZHU6KHHWFKHFNWKHPIRUDQ\GHIHFW
OLNHPLVSULQWIXGJLQJRISULQWLQJPLVVLQJSDJHV4XHVWLRQV2YDOVHWFDQGDVNIRU
LVVXHRIUHOHYDQWGXSOLFDWHV
1RGXSOLFDWH4XHVWLRQ%RRNOHW205$QVZHU6KHHWRU([WUD%ODQN6KHHWVRISDSHUVKDOO
EHSURYLGHGH[FHSWLQDVLWXDWLRQXQGHU,QVWUXFWLRQDERYH
(QWHU\RXU'LJLW$GPLW&DUG1XPEHUDQG'LJLW205$QVZHU6KHHW1XPEHULQWKH
VSDFHSURYLGHGDERYHLQWKH4XHVWLRQ%RRFLHWZLWK%DOO3RLQW3HQ2QO\
(QWHU\RXU'LJLW$GPLW&DUG1XPEHULQWKHVSDFHLQWKH205$QVZHU6KHHWZLWK
%DOO3RLQW3HQ2QO\DQGVKDGHWKHUHOHYDQWRYDOVZLWK+%3HQFLO2QO\
7KHUH DUH ),9( 6HFWLRQV 6HFWLRQ ,9 FRPSULVLQJ RI 2EMHFWLYH 4XHVWLRQV LQ WKH
4XHVWLRQ%RRNOHWDQGHDFKTXHVWLRQFDUULHV21(PDUN7KHDQVZHUVWRWKHVHREMHFWLYH
TXHVWLRQVDUHWREHHQWHUHGRQWKH205$QVZHU6KHHWE\IXOO\VKDGLQJWKHDSSURSULDWH
RYDOVZLWK+%3HQFLO2QO\,IPRUHWKDQRQHRYDOLVVKDGHGLQDQVZHUWRDTXHVWLRQWKDW
DQVZHUVKDOOEHGHHPHGWREHZURQJ
$QVZHUDOOWKH+XQGUHG4XHVWLRQV
7+(5(,6121(*$7,9(0$5.,1*)25:521*$16:(56
6SHFLILF LQVWUXFWLRQV DUH JLYHQ DW WKH EHJLQQLQJ RI HDFK 6HFWLRQ DQG 3DUWV RI HDFK
6HFWLRQ5HDGWKHPFDUHIXOO\EHIRUHDQVZHULQJ
7RWDO QXPEHU RISDJHVLQ WKH 4XHVWLRQERRNOHW LV LQFOXGLQJ WKHIRXUEODQNSDJHV
IRUURXJKZRUNDWWKHHQG
,'3RVVHVVLRQRIDOONLQGVRIHOHFWURQLFJDGJHWVLQWKH([DP+DOOLVVWULFWO\SURKLELWHG
3RVVHVVLRQ DQG RU XVH RI DQ\ XQIDLU PHDQV VKDOO GLVTXDOLI\ WKH FDQGLGDWH DQG
GHFLVLRQRIWKH&HQWUH6XSHULQWHQGHQWLQWKLVUHJDUGVKDOOEHILQDO

6LJQDWXUHRI&HQWUH6XSHULQWHQGHQW

0$5.6',675,%87,21

6HFWLRQV 3DUW 0D[0DUNV
,(QJOLVKLQFOXGLQJ
$
,
&RPZHKHQVLRQ
%
&
'
(
)
Ϯϴ

,,*HQHUDO.QRZOHGJH
&XUUHQW$IIDLUV
,,,(OHPHQWDU\
0DWKHPDWLFV
1XPHULFDODELOLW\
,9/HJDO$SWLWXGH
9/RJLFDO5HDVRQLQ\
7RWDO

6(&7,21,
(QJOLVK,QFOXGLQJ&RPSUHKHQVLRQ
3$57$
,QVWUXFWLRQ4XHVWLRQV5HDGWKHJLYHQSDVVDJHFDUHIXOO\DQGDQVZHUWLOHTXHVWLRQV
WKDWIROORZ6KDGHWLOHDSSURSULDWHDQVZHULQWLOHVSDFHSURYLGHGIRULWRQWKH
205$QVZHU6KHHW

0DUNV (DFKTXHVWLRQFDUULHVRQHPDUN 7RWDOPDUNV

7KHUHLVDIDLUO\XQLYHUVDOVHQWLPHQWWKDWWKHXVHRIQXFOHDUZHDSRQVLVFOHDUO\FRQWUDU\
WRPRUDOLW\DQGWKDWLWVSURGXFWLRQSUREDEO\VRGXHVQRWJRIDUHQRXJK7KHVHDFWLYLWLHV
DUHQRWRQO\RSSRVHGWRPRUDOLW\EXWDOVRWRODZLIWKHOHJDOREMHFWLRQFDQEHDGGHGWRWKH
PRUDO WKH DUJXPHQW DJDLQVW WKH XVH DQG WKH PDQXIDFWXUH RI WKHVH ZHDSRQV ZLOO
FRQVLGHUDEO\EHUHLQIRUFHG1RZWKHWLPHLVULSHWRHYDOXDWHWKHUHVSRQVLELOLW\RIVFLHQWLVWV
ZKR NQRZLQJO\ XVH WKHLU H[SHUWLVH IRU WKH FRQVWUXFWLRQ RI VXFK ZHDSRQV ZKLFK KDV
GHOHWHULRXVHIIHFWRQPDQNLQG

7R WKLV PXVW EH DGGHG WKH IDFW WKDW PRUH WKDQ SHUFHQW RI WKH VNLOOHG VFLHQWLILF
PDQSRZHULQWKHZRUOGLVQRZHQJDJHGLQWKHDUPDPHQWVLQGXVWU\+RZDSSURSULDWHL>LV
WKDWDOOWKLVYDOXDEOHVNLOOVKRXOGEHGHYRWHGWRWKHPDQXIDFWXUHRIZHDSRQVRIGHDWKLQD
ZRUOGRISRYHUW\LVDTXHVWLRQWKDWPXVWWRXFKWKHVFLHQWLILFFRQVFLHQFH

$PHHWLQJRIELRORJLVWVRQWKH/RQJ7HUP:RUOGZLGH%LRORJLFDOFRQVHTXHQFHVRIQXFOHDU
ZDUDGGHGIULJKWHQLQJGLPHQVLRQWRWKRVHIRUHFDVWV,WVUHSRUWVXJJHVWHGWKDWWKHORQJ
ELRORJLFDO HIIHFWV UHVXOWLQJ IURP FOLPDWLF FKDQJHV PD\ DW OHDVW EH DV VHULRXV DV WKH
LPPHGLDWHRQHV6XEIUHH]LQJWHPSHUDWXUHVORZOLJKWOHYHOVDQGKLJKGRVHVRILRQL]LQJ
DQG XOWUDYLROHW UDGLDWLRQ H[WHQGLQJ IRU PDQ\ PRQWKV DIWHU D ODUJHVFDOH QXFOHDU ZDU
FRXOG GHVWUR\ WKH ELRORJLFDO VXSSRUW V\VWHP RI FLYLOL]DWLRQ DW OHDVW LQ WKH 1RUWKHUQ
+HPLVSKHUH 3URGXFWLYLW\ LQ QDWXUDO DQG DJULFXOWXUDO HFRV\VWHPV FRXOG EH VHYHUHO\
UHVWULFWHGIRUD\HDURUPRUH3RVWZDUVXUYLYRUVZRXOGIDFHVWDUYDWLRQDVZHOODVIUHH]LQJ
FRQGLWLRQVLQWKHGDUNDQGEHH[SRVHGWRQHDUOHWKDOGRVHVRIUDGLDWLRQ,IDVQRZVHHPV
SRVVLEOHWKH6RXWKHUQ+HPLVSKHUHZHUHDIIHFWHGDOVRJOREDOGLVUXSWLRQRIWKHELRVSKHUH
FRXOGHQVXH,QDQ\HYHQWWKHUHZRXOGEHVHYHUHFRQVHTXHQFHVHYHQLQWKHDUHDVQRW
DIIHFWHGGLUHFWO\EHFDXVHRIWKHLQWHUGHSHQGHQFHRIWKHZRUOGHFRQRP\,QHLWKHUFDVH
WKHH[WLQFWLRQRIDODUJHIUDFWLRQRIWKHHDUWK
VDQLPDOVSODQWVDQGPLFURRUJDQLVPVHHPV
SRVVLEOH 7KH SRSXODWLRQ VL]H RI +RPR VDSLHQV FRQFHLYDEO\ FRXOG EH UHGXFHG WR
SUHKLVWRULFOHYHOVRUEHORZDQGH[WLQFWLRQRIWKHKXPDQVSHFLHVLWVHOIFDQQRWEHH[FOXGHG
Ϯϵ

&KRRVHWKHZRUGZKLFKLVPRVWRSSRVLWHLQPHDQLQJRIWKHZRUGSULQWHGLQEROGDV
XVHGLQWKHSDVVDJH'HOHWHULRXV
D %HQHILFLDO E+DUPIXO
F,UUHSDUDEOH G1RQFRJQL]DEOH

7KHDXWKRU
VPRVWLPSRUWDQWREMHFWLYHRIZULWLQJWKHDERYHSDVVDJHVHHPVWR

D +LJKOLJKWWKHXVHRIQXFOHDUZHDSRQVDVDQFOOHFOLYHSQSXODXXQFRQWUROPHDVXUHV
E ,OOXVWUDWHWKHGHYDVWDWLQJHIIHFWVRIXVHRIQXFOHDUVYHDSXQVRQPDQNLQGF'XO\
KLJKOLJKWWKHVXSUHPDF\RI
WKHQDWLRQVZKLFKSRVVHVVQXFLFDOZHDSRQV
G6XPPDULVHWKHORQJELRORJLFDO!!"!#!QXFOHDUZHDSRQV
7KHVFLHQWLVWVHQJDJHGLQPDQXIDFWXULQJGHVWUXFWLYHZHDSRQVDUH
D 9HU\IHZLQQXPEHU
E ,UUHVSRQVLEOHDQGLQFRPSHWHQW
F 0RUHWKDQKDOIRIWKHWRWDOQXPEHU
G (QJDJHGLQWKHDUPDPHQWVLQGXVWU\DJDLQVWWKHLUGHVLUH

$FFRUGLQJ>RWKHSDVVDJHWKHDUJXPHQWRQXVHDQGPDQXIDFWXUHRIQXFOHDUZHDSRQV
D 'RHVQRWVWDQGWKHWHVWRIOHJDOLW\
E 3RVVHVVHVOHJDOVWUHQJWKDOWKRXJKLWGRHVQRWKDYHPRUDOVWDQGLQJF,VDFFHSWDEOH
RQO\RQPRUDOJURXQGV
G%HFRPHVVWURQJHULIOHJDODQGPRUDOFRQVLGHUDWLRQVDUHFRPELQHG

7KHDXWKRURIWKHSDVVDJHVHHPVWREHRIWKHYLHZWKDW
D 8WLOL]DWLRQRIVFLHQWLILFVNLOOVLQPDQXIDFWXUHRIZHDSRQVLVDSSURSULDWH
E 0DQXIDFWXUH RI ZHDSRQV RIGHDWKZRXOG KHOSHUDGLFDWLRQ RI SRYHUW\ F 6SHQGLQJ
PRQH\RQPDQXIDFWXUHRIZHDSRQVPD\EHMXVWLILDEOHVXEMHFWWRWKHDYDLODELOLW\RI
IXQGV
G8WLOL]DWLRQRIYDOXDEOHNQRZOHGJHIRUPDQXIDFWXUHRIOHWKDOZHDSRQVLVLQKXPDQ

:KLFKRIWKHIROORZLQJLVRQHRIWKHFRQVHTXHQFHVRIQXFOHDUZDU"D)HUWLOLW\RIODQG
ZLOOODVWIRUD\HDURUVR
E 3RVWZDU VXUYLYRUV EHLQJ YHU\ IHZ ZLOO KDYH DEXQGDQW IRRG F
/LJKWVZRXOGEHFRROHUDQGPRUHFRPIRUWDEOH
G6RXWKHUQ+HPLVSKHUHZRXOGUHPDLQTXLWHVDIHLQWKHSRVWZDUSHULRG

:KLFKRIWKHIROORZLQJEHVWH[SODLQVWKHZRUGGHYRWHGDVXVHGLQWKHSDVVDJH"
D 'HGLFDWHGIRUDJRRGFDXVH E8WLOLVHGIRUEHWWHUPHQW
F$EXVHGIRUGHVWUXFWLRQ G8QGHUXWLOLVHG
7KH ELRORJLFDO FRQVHTXHQFHV RI QXFOHDU ZDU DV JLYHQ LQ WKH SDVVDJH LQFOXGH DOO WKH
IROORZLQJH[FHSW
D )DOOLQWHPSHUDWXUHEHORZ]HURGHJUHH&HOVLXV
E 8OWUDYLROHWUDGLDWLRQ
F +LJKGRHVRILRQL]LQJ
G $EXQGDQWIRRGIRUVPDOOHUSRSXODWLRQ
,W DSSHDUV IURP WKH SDVVDJH WKDW WKH XVH RI QXFOHDU ZHDSRQV LV FRQVLGHUHG DJDLQVW
PRUDOLW\E\
D 2QO\VXFKRIWKRVHQDWLRQVZKRFDQQRWDIIRUGWRPDQXIDFWXUHDQGVHOOZHDSRQV
E $OQXRDWDOOWKHQDWLRQVRIWKHZRUOG
ϯϬ

F 2QO\WKHVXSHUSRZHUVZKRFDQDIIRUGWRPDQX-DFWXUHDQGVHOOZHDSRQVG0RVWRI
WKHVFLHQWLVWVGHYRWHWKHLUYDOXDEOHVNLOOVWRPDQXIDFWXUHQXFOHDUZHDSRQV
:KLFKRIWKHIROORZLQJVWDWHPHQWV,,,,,,DQG,9LVGHILQLWHO\WUXHLQWKHFRQWH[WRIWKH
SDVVDJH"
, 7KHUHLVHYHU\OLNHOLKRRGRIVXUYLYDORIWKHKXPDQVSHFLHVDVDFRQVHTXHQFHRIQXFOHDU
ZDU
,, 1XFOHDUZDUULVNVDQGKDUPIXOHIIHFWVDUHKLJKO\H[DJJHUDWHG
,,, 7KHSRVWZDUVXUYLYRUVZRXOGEHH[SRVHGWRWKHEHQHILWVRIQRQOHWKDOUDGLDWLRQ
,9 /LYLQJRUJDQLVPVLQWKHDUHDVZKLFKZHQRWGLUHFWO\DIIHFWHGE\QXFOHDUZDVZRXOG
DOVRVXIIHU
D , E,,, F,, G,9
3$57%
,QVWUXFWLRQV4XHVWLRQV,7KUHHRIWKHIRXUZRUGVJLYHQLQWKHVHTXHVWLRQVDUHVSHOW
ZURQJ6HOHFWWKHZRUGWKDWLVVSHOWFRUUHFWDQGVKDGHWKHDSSURSULDWHDQVZHULQWKHVSDFH
SURYLGHGIRULWRQWKH205$QVZHU6KHHW0DUNVPDUN(DFKTXHVWLRQFDUULHV2QH
7RWDOPDUNV
DUHQDLVVDQFH EUHQDLVDQFH FUHQDLVVHQFH GUHQDLVHQFH
DPDODHVH EPHODL]H FPHODLVH GPDODLVH
DLUHOHYDQW ELWUHOHYHQW FLUUHOHYDQW GLUUHOOHYDQW
DVXUYLODQFH EVXUYHLOODQFHFVXUYHLODQFH GVXUYHLOOLDQFF
EJDLHWO\ FJDHLW\ GJDLWW\

DJDLHW\

3$57&
,QVWUXFWLRQV4XHVWLRQV*LYHQEHORZDUHDIHZIRUHLJQODQJXDJHSKUDVHVWKDWDUH
FRPPRQO\XVHG&KRRVHWKHFRUUHFWPHDQLQJIRUHDFKRUWKHSKUDVHVDQGVKDGHWKH
DSSURSULDWHDQVZHULQWKHVSDFHSURYLGHGIRULWRQWKH205$QVZHU6KHHW
0DUNV(DFKTXHVWLRQFDUULHV2QHPDUN 7RWDOPDUNV

0DODILGH
DLQJRRGIDLWK ELQEDGIDLWK
FZLWKRXWDQ\IDLWK GZLWKIXOOIDLWK
3URUDWD
DDWWKHUDWHRI EDWTXRWHGUDWH
FLQSURSRUWLRQ GEH\RQGDOOSURSRUWLRQ
9LFHYHUVD
DLQYHUVH EYHUVDWLOHYHUVH
FLQFRQVRQDQFHZLWK GWKHRWKHUZD\URXQG
$ELQLWLR
DIURPWKHYHU\EHJLQQLQJ EKLJKLQLWLDWLYH
FWKLQJVGRQHODWHU GZLWKRXWLQLWLDWLYH
$OLEL
DHYHU\ZKHUH EHOVHZKHUH
FQRZKHUH GZLWKRXWDQ\H[FXVH
ϯϭ

3$57²'

,QVWUXFWLRQV4XHVWLRQV6RPHLGLRPVJLYHQEHORZDUHFRPPRQO\XVHG&KRRVHWKH
FRUUHFW PHDQLQJ IRU HDFK RI WKH LGLRPV DQG VKDGH WKH DSSURSULDWH DQVZHU LQ WKH
VSDFHSURYLGHGIRULWRQWKH205$QVZHU6KHHW

7RJLYHWKHJDPHDZD\
D 7RORVHWKHJDPH E7RJLYHDZDONRYHULQDJDPH
F7RUHYHDOWKHVHFUHW G7RSOD\WKHJDPHEDGO\
7RFRRORQH
VKHHOV
D 7R&ORVHWKH&KDSWHU E7RZDONRQWKHKHHOV
F7RNLFNVRPHRQHZKKWKHKHHOVG7RZDLWDQGUHVWIRUVRPHWLPH
7REXU\WKHKDWFKHW
D 7ROLJKWZLWKWKHKDWFKHW E7RORWJHWWKHHQPLW\
F7REXU\WKHWUHDVXUHXQGHUJURXQG G7RSLFNXSHQPLW\
*LIWRIWKHJDE
D *LIWIRUKDUGZRUN E*LIWXQGHVHUYHG
F*LIWRIEHLQJDJRRGFRQYHUVDWLRQDOLVWG*LIWIURPXQNQRZQSHUVRQ
7RVPHOODUDW
D 7RVXVSHFWDWULFN E7RGHWHFWDIRXOVPHOO
F7REHKDYHOLNHDUDW G7RWUXVWEOLQGO\
3$57²(
,QVWUXFWLRQV4XHVWLRQV*LYHQEHORZDUHVHQWHQFHVZLWKDEODQNLQHDFKVHQWHQFH
&KRRVH WKH ULJKW DQVZHU WR ILOO LQ WKH EODQN E\ VKDGLQJ \RXU DQVZHU LQ WKH VSDFH
SURYLGHGIRULWRQWKH205$QVZHU6KHHW

6RPHSHRSOHEHOLHYHWKDWLQHPRWLRQDOPDWXULW\PHQDUHLQIHULRU
ZRPHQ
D 7KDQE7RF)URP G$JDLQVW
0\IDWKHUZDVDQQR\HGPH
D 7RZDUGV E$JDLQVW F:LWK G8SRQ
6RPHRUWKRGR[SHUVRQVDUHDYHUVHGULQNLQJOLTXRU
D $JDLQVW E)RU F7RZDUGV G7R
7KH&LQHPD+DOOZDVRQILUHDQGWKH&LQHPDRZQHUKDGWVHQGWKH)LUH%ULJDGH
D )RU E7KURXJK F2II G,Q
OLHZDVQRWOLVWHQLQJ,ZDVVD\LQJ
D 7KDL E:KLFK F
IXZKDW G:KDW
'ULQNLQJFRXQWU\OLTXRUDOPDUULDJHLVDFXVWRPFHUWDLQWULEHV
D,Q E$PRQJ F%HWZHHQ G:LWK
7KHVWUXJJOHIRUMXVWLFHEULQJVWKHEHVWRIPRUDOTXDOLWLHVRIPHQ
D)RUZDUG E$ERXW F,Q G2XW
,IKHDKRUVHKHZRXOG,O\
D :DV E:HUH F,V G*RHV
0RKDQKDVDEDGKDELWRIDWRQRGGKRXU
D 7XUQLQJXSE7XUQLQJLQ F7XUQLQJRYHU G7XUQLQJ2II
+HPXVWUHIUDLQLPPRUDOFRQGXFWV
D 2II E7KURXJK F)URP G$JDLQVW

ϯϮ

3$57²)
,QVWUXFWLRQV 4XHVWLRQV 7KH FRQVWLWXHQW VHQWHQFHV RI D SDVVDJH KDYH EHHQ
MXPEOHG XS 5HDG MXPEOHG VHQWHQFHV FDUHIXOO\ DQG WKHQ FKRRVH WKH RSWLRQ ZKLFK
VKRZV WKH EHVW VHTXHQFH RI VHQWHQFHV RI WKH SDVVDJH DQG VKDGH WKH DSSURSULDWH
DQVZHULQWKHVSDFHSURYLGHGIRULWRQWKH205$QVZHU6KHHW

L7KH&ROOHFWRUVDLGWKDWWKH'DPVVKRXOGUHFHLYH
LL 7RHQVXUHXQLQWHUUXSWHG
LLL :DWHUXSWRDSDUWLFXODUOHYHO
LY 6XSSO\RIZDWHUIRULUULJDWLRQ7KHEHVWVHTXHQFHLV
D LLLLYLLL ELLLLLLLY
FLYLLLLLL GLLLYLLLL
L+HORYHGWRGLVWULEXWHWKHPDPRQJVPDOONLGV
LL +HZRUHDORQJORRVHVKLUWZLWKPDQ\SRFNHWV
LLL $QGLQGRLQJVRKLVH\HVEULJKWHQHG
LY 7KHSRFNHWVRIKLVVKLQEXOJHGZLWKWRIIHHVDQGFKRFRODWHV
7KHEHVWVHTXHQFHLV
D LLLLLLLY ELLYLLLLL
FLYLLLLLL GLLLYLLLL
L$VZHDOONQRZDOHJLVODWLRQ
LL 1HHGVWKHDVVHQWRIWKH3UHVLGHQW
LLL 3DVVHGE\WKH+RXVHVRI3DUOLDPHQWLY
7REHFRPHODZ
7KHEHVWVHTXHQFHLV
D LLLLLLLY ELLYLLLLL
FLYLLLLLL GLLLYLLLL
L7KHIDUPHUVJURZIRRGIRUWKHZKROHFRXQWU\
LL $QGWKHUHIRUHLWLVRXUGXW\WRLPSURYHWKHLUORW
LLL <HWWKHVHIHOORZVDUHH[SORLWHGE\WKHULFK
LY +HQFHWKH\DUHWKHPRVWXVHIXOPHPEHUVRIWKHVRFLHW\
7KHEHVWVHTXHQFHLV
D LLLLYLLL ELLYLLLLL
FLLYLLLLL GLLLYLLLL
L7KHULSSOHVORRNHGHQFKDQWLQJLQWKHOLJKWRIWKH6XQ
LL :HZHQWWRWKHSRQG
LLL :HIOXQJVWRQHVWRFUHDWHULSSOHV
LY :HVWRRGNQHHGHHSLQWKHPXGG\ZDWHURIWKHSRQG
7KHEHVWVHTXHQFHLV
D LLLLYLLL ELLLYLLLL
FLYLLLLLL GLYLLLLLL

6(&7,21,,
*HQHUDO.QRZOHGJH&XUUHQW$IIDLUV

,QVWUXFWLRQV4XHVWLRQV2XWRIWKHIRXUDQVZHUVVKDGHWKHFRUUHFWDQVZHULQWKH
VSDFHSURYLGHGIRULWRQWKH205$QVZHU6KHHW
0DUNV(DFKTXHVWLRQFDUULHVRQHPDUN WRWDOPDUNV
&DSLWDOPDUNHWPHDQV
ϯϯ

D 0XWXDO)XQGV E0RQH\0DUNHWF6HFXULWLHV0DUNHW G %DQNLQJ

%XVLQHVV
)URPZKLFKULYHUZRXOGWKH1DWLRQDO5LYHU3URMHFWKHVWDUWHG"
D <DPXQD E*RPWL
F*DQJDG.ULVKQD
7KH$XGDFLW\RI+RSHLVDKRQNZULWWHQE\
D %LOO&OLQWRQ E%DUDFN2EDPD
F*RUJH%XVK G%LOO*DWHV

:3,
LVXVHGDVDQDFURQ\PIRU
D :RUOG3ULFH,QGH[ E:RUOG3ULFH,QGLFDWRUV
F:KROHVDOH3ULFH,QGH[ G:KROHVDOH3ULFHLQGLFDWRUV
,IWKHWD[UDWHLQFUHDVHVZLWKWKHKLJKHUOHYHORILQFRPHLWVKDOOEHFDOOHG
D 3URJUHVVLYH7D[ E3URSRUWLRQDO7D[
F/XPSVXP7D[ G5HJUHVVLYH7D[:KRLVWKH
'LUHFWRURI&KDN'H,QGLD"
D6KLPLW$PLUR E<DVK&KRSUD
F6KDKUXNK.KDQ G5DP*RSDOYHUPD

:KDWLVWKHIXOOIRUPRIWKHVFDQQLQJWHFKQLTXH&$7"
D &RPSOHWH$QDWRPLFDO7UHSDQQLQJE &RPSXWHUL]HG $XWRPDWLF 7KHUDS\ F
&RPSXWHUL]HG$[LDO7RPRJUDSK\ G&RPSOHWH$[LDO7UDQVPLVVLRQ
:KRJRWWKH:RUOG)RRG3UL]H"
D .RIL$QQDQ E0DQ0RKDQ6LQJK
F+LOODU\&OLQWRQ G%KXPLERO$GXO\DGHM
,62LVD
D 4XDOLW\6WDQGDUG0DUN E6SDFH3URMHFWF7UDGH7HFKQLTXH G /RDQ
6HFXULW\
:KDWLV
$*0$5.
"
D 1DPHRI%UDQG
E $0DUNHWLQJ5HVHDUFK2UJDQLVDWLRQ
F (JJVVXSSOLHGE\*RYHUQPHQWUXQFRRSHUDWLYH
G $JULFXOWXUHPDUNHWLQJIRUDJURSURGXFWV
7KH+HDGTXDUWHUVRI,QGLDQ6SDFH5HVHDUFK2UJDQLVDWLRQLVDW
D 7ULYDQGUXP E1HZ'HOKL
F%DQJDORUHG$KPHGDEDG

6DUDVLVWKHQDPHRI
D $Q$LUFUDIW E$7DQN
F$0LVVLOH G$6XEPDULQH
)LUVWZRPDQ3ULPH0LQLVWHULQWKH:RUOGZDVIURP
D 6UL/DQND E%KXWDQ
F,QGLD G1HSDO
:KRZDVIHOLFLWDWHGZLWK
1LVKDQH3DNLVFDQ"
D 6KDZJKDQ6LQKD E0DXODQD$]DG
F'LOLS.XPDU G.KDQ$EGXO*DIIDU.KDQ

$" 6WDWH SURYLGHG VHSDUDWH UHVHUYDWLRQ IRU 0XVOLPV DQG &KULVWLDQV LQ WKH 6WDWH
%DFNZDUG&ODVVHV/LVWLQ"
D $QGKUD3UDGHVK E7DPLO1DGX
ϯϰ

F%LKDU G.HUDOD
$"RIWKHIROORZLQJGDQFHVLVQRWDFODVVLFDOGDQFH"
D .DWKDNDOL E*DUED
F2GLVVL G0DQLSXQ
6XODEK,QWHPDWLRQDOLVDQRUJDQLVDWLRQ"SURYLGHV
D +HDOWK6HUYLFHVLQ5XUDO$UHDV E*RRG6DQLWDWLRQDW&KHDS5DWHV
F/RZ&RVW$FFRPPRGDWLRQ G/RZ&RVW&UHGLW
:KRDPRQJWKHIROORZLQJZDVKRQRXUHGZLWK
2IILFHURIWKH/HJLRQRI+RQRXU

DZDUG
E\)UHQFK*RYHPPHQWLQ-XO\%&&'(
D 'HY$QDQG E<DVK&KRSUD
F+5&KRSUD G0ULQDO6HQ
7KHODUJHVWJODQGLQWKHKXPDQERG\LV
D /LYHU E3DQFUHDV
F7K\URLG G(QGRFULQH
7KH5DLOZD\%XGJHWIRU%&&)*%&&'KDVGHFODUHGWKH\HDU%&&)DVWKH\HDURI
D &OHDQOLQHVV E3DVVHQJHU&RPIRUW F6WDII:HOIDUH G &RPSXWHUL]DWLRQ
RI5HVHUYDWLRQV
,QWKHZRUOGRI+LQGL&LQHPDZKRZDVDIIHFWLRQDWHO\FDOOHGDV
'DGD0RQL
"
D %DOUDM6DKQLE3GWKYLUDM.DSRRU
F$VKRN.XPDU G8WSDO'XWW

2XWVWDQGLQJ3DUOLDPHQWDULDQ$ZDUG%&&+ZDVSUHVHQWHGLQ%&&)WRD3
&KLGDPEUDP E6DUDG3DZDU
F0DQL6KDQNDU$L\DUG6XVKPD6ZDUDM
:RUOG
VORQJHVWVHDEULGJHKDVWDNHQVKDSHLQWR%&&)LQ
D &KLQDE-DSDQF6LQJDSRUH G86$
:KRDPRQJWKHIROORZLQJ,QGLDQVEHFDPH&LWLJURXS
V,QYHVWPHQW%DQNLQJKHDG"
D /10LWWDO E$.6XEUDPDQL\DP
F9LQHHW6HWK G9LNUDP3DQGLW
7KH*UHHQ5HYROXWLRQLQ,QGLDKDVEHHQLGHQWLILHGZLWK
D 'U0DQ0RKDQ6LQJK E'U0RQWFN6LQJK$KOXZDOLD
F0U5DMHQGUD6LQJK
ZDOHUPDQ
G'U066ZDPLQDOKDQ
,QGLDQ-XGJHLQWKH81/DZRIWKH6HD7ULEXQDOLV
D 'U365DR E'U3&5DR
F0U-XVWLFH-DJDQQDWK5DRG0U-XVWLFH5DMHQGUD%DEX
7KH2]RQH/D\HUWKLQVGRZQDVDUHVXOWRIDFKDLQFKHPLFDOUHDFWLRQWKDWVHSDUDWHV
IURPWKHOD\HU
D 2[\JHQ E&KORULQH
F1LWURJHQ G+\GURJHQ
-RLQW6$$5&8QLYHUVLW\RIHLJKW6$$5&1DWLRQVKDVEHHQHVWDEOLVKHGLQ
D &RORPER E'KDND
F.DWKPDQGX G1HZ'HOKL
:KLFK FRXQWU\ UHFHQWO\ SURGXFHG WKH ZRUOG
V ILUVW FORQHG UDEELW XVLQJ D ELRORJLFDO
SURFHVVWKDWWDNHVFHOOVIURPDIHPV"
D 8. E&KLQD
F86$G*HUPDQ\

:KLFKRQHRIWKHIROORZLQJ9LWDPLQVLVUHVSRQVLEOHIRUEORRGFORWWLQJ"
ϯϱ

D 9LWDPLQ$ E9LWDPLQ(
F9LWDPLQ& G9LWDPLQ.
:KDWLVWKHPHDQLQJRI
*LOW(GJHG0DUNHW
"
D 0DUNHWLQ*RYHUQPHQWVHFXULWLHV E0DUNHWRIVPXJJOHGJRRGV
F0DUNHWRIDXFWLRQHGJRRGV G0DUNHWRI*ROGSURGXFWV
:KRLVWKH&HQWUDO&KLHI,QIRUPDWLRQ&RPPLVVLRQHURI,QGLD"
D 3URI$QVDUL E0UV3DGPD6XEUDPHQLDQ
F0U:DMDKDW+DELEXOODK G'U23.HMDULZDO
7KH\RXQJHVWUHFLSLHQWRI3DGPD6KWLVRIDULV
D 6DFKLQ7HQGXONDU E6KREDQD&KDQGUDNXPDU
F6DQLD0LDD G%LOO\0DQ6LQJK
:KRLVWKH'LUHFWRURIWKHILOP(OL]DEHWK7KH*ROGHQ$JH&DVW"
D 5DPD1DQG6DJDU E5DP*RSDO9HUPD F.DUDQ-RKDU G 6KHNKDU
.DSXU
7KHWHUULWRULDOZDWHUVRI,QGLDH[WHQGXSWR"
D 1DXWLFDO0LOHV E.P
F1DXWLFDO0LOHV G1DXWLFDO0LOHV

6DWQMKRPD([SUHVV
UXQVEHWZHHQ>OLH5DLOZD\6WDWLRQVRI
D 1HZ'HOKL:DJDK E1HZ'HOKL/DKRUH
F$PULWVDU/DKRUHG1HZ'HOKL,VODPDEDG
%OXHUHYROXWLRQUHIHUVWR
D )RUHVW'HYHORSPHQWEILVKLQJ
F3RXOWU\)DUPLQJ G+RUWLFXOWXUH
'U$3$EGXO.DODPKDVEHHQDSSRLQWHGDV&KDQFHOORURI
D ,,00XPEDLE,,7.DQSXU
F,,0$KPHGDEDG G8677KLUXYDQDQWKDSXUDP
,QZKLFK6WDWH.DQ\D9LG\DGKDQ<RMQDLVRSHUDWLRQDO"
D $QGKUD3UDGHVK E8WWDU3UDGHVK
F5DMDVWKDQG+DU\DQD
:KRHPHUJHGWKHIDVWHVWZRPDQRIWKHZRUOGDW%HLMLQJ2O\PSLFV"
D 6KHURQ6XPSVRQ E.HDRQ6WHZDUW
F$QQ)UDVHU G(OLQD%DVLHQD
6DYDQQDWKJUDVVODQGVDUHIRXQGLQ
D 1RUWK$PHULFD E$IULFD
F$XVWUDOLD G(DVW$VLD

:KLFK 6WDWHKDV ODXQFKHG WKH $DURJ\D 6UL D KHDOWK,QVXUDQFH 6FKHPH IRU IDPLOLHV
EHORZSRYHUW\OLQH"
D $QGKUD3UDGHVK E8WWDU3UDGHVK
F0DKDUDVKWUD G.HUDOD
7KHILUVWQXFOHDUUHDFWRURI,QGLDLVQDPHG
D 5RKLQL E9DLVKDOL
F$SVDUD G.DPLQL
,Q0D\$LU6DKDUDDFTXLUHGE\-HW$LUZD\VLVEHLQJRSHUDWHGDVDVHSDUDWHDLUOLQH
XQGHUWKHQDPHRI
D -HW/LWH E-HW6DKDUD
F$LU-HW/LQH G-HW6DKDUD/LWH
6XH]&DQDOFRQQHFWV
D 0HGLWHUUDQHDQ6HDDQG5HG6HDE0HGLWHUUDQHDQ6HDDQG%ODFN6HD
F%DOWLF6HDDQG5HG6HD G%DOWLF6HDDQG%ODFN6HD
ϯϲ

*RYHUQPHQWKDVODXQFKHG(3DVVSRUW6FKHPHDQGILUVW(3DVVSRUWZDVLVVXHGWR
D 0U$UMXQ6LQJK E0UV6RUWLD*DQGKL
F'U0DQ0RKDQ6LQJK G0UV3UDWLEKD3DWLO
77KH+LQGXRXWILW
+LQGUDI
KDVEHHQEDQQHGLQ
D3DNLVWDQ E7KDLODQG
F0DOD\VLD G%DQJODGHVK
:KLFK RUJDQL]DWLRQ LV KHDGHG E\ ,QGLDQ (QYLURQPHQODOLVLV 5.3DFKDXUL D 1REHO
/DXUHDWH
D ,QWHUQDWLRQDO(QYLURQPHQW3DQHO
E ,QWHUQDWLRQDO3DQHORQ&OLPDWH&KDQJH
F ,QWHUQDWLRQDO3ROOXWLRQ&RQWURO3DQHO
G ,QWHUQDWLRQDO3DQHORQ*OREDO:DUPLQJ
.DQGKDPDOWKHZRUVWDIIHFWHGWRZQE\VHFWDULDQYLROHQFHLQ6HSWHPEHU2FWREHU
LVVLWXDWHGLQ
D 2ULVVD E*XMDUDW
F$QGKUD3UDGHVK G.DPDWDND
:RUOG1R7REDFFR'D\LVREVHUYHGRQ
D -DQXDU\ E-XQH
F0D\ G0DUFK

6(&7,21,,,
(OHPHQWDU\0DWKHPDWLFV1XPHULFDO$ELOLW\

,QVWUXFWLRQV 4XHVWLRQV )URP WKH IRXU DQVZHUV JLYHQ VKDGH WKH DSSURSULDWH
DQVZHU,QWKHVSDFHSURYLGHGIRULWRQWKH205$QVZHU6KHHW
7KHDYHUDJHPRQWKO\LQFRPHRIDSHUVRQLQDFHUWDLQIDPLO\RIPHPEHUVLV5V
:KDWZLOOEHPRQWKO\DYHUDJHLQFRPHRIRQHSHUVRQLQWKHVDPHIDPLO\LIWKHLQFRPH
RIRQHSHUVRQLQFUHDVHGE\5VSHU\HDW
"
D 5V E5V
F5V G5V
$GLVKRQHVWVKRSNHHSHUXVHVDZHLJKWRIJPIRUDNJDQGSURIHVVHVWRVHOOKLVJRRG
DWFRVWSULFH+LVSURILWLV
D E
F G
%\VHOOLQJ,,RUDQJHVIRUDUXSHHDPDQORVHV+RZPDQ\RUDQJHVIRUDUXSHH
VKRXOGKHVHOOWRJDLQ"
D E
F G
$ SHUVRQ WDNHV KRXUV WR ZDON D FHUWDLQGLVWDQFH DQGULGLQJ EDFN )LH FRXOGZDON
ERWKZD\VLQKRXUV+RZORQJFRXOGLWWDNHWRULGHERWKZD\V
D KU E,KU
FKU GILUV
ϯϳ

&KDQJHLQWRSHUFHQWDJH
D E
F G
RILVHTXDOWR

D E
F G
:KLFKQXPEHUVKRXOGILOOWKHEODQNVSDFHWRFRPSOHWHWKHVHULHV

D E
F G
7KHVPDOOHVW!WKHIUDFWLRQVJLYHQ EHORZ
E
D
G
F
7KUHHIULHQGVVKDUHGWKHFRVWRIDWHOHYLVLRQ,I$PLW%KDUDWDQG'LQHVKHDFKSDLG5V
DQG5VUHVSHFWLYHO\WKHQ'LQHVKSDLGZKDWSHUFHQWRIWKHWRWDOFRVW"
D E
F G
7KHDYHUDJHDJHRIER\VRIDFODVVLVHTXDOWR\HDUV:KHQWKHDJHRIWKHFODVV
WHDFKHULVLQFOXGHGWKHDYHUDJHEHFRPHV\HDUV)LQGWKHDJHRIWKHFODVVWHDFKHU
D \HDUV E\HDUV
F\HDUV G\HDUV
,WWDNHVSHRSOHZRUNLQJDWHTXDOUDWHVWRILQLVKDZRUNLQGD\V+RZORQJZLOO
ZRUNHUVWDNHIRUWKHVDPHZRUN"
D GD\V EGD\V
FGD\V GGD\V
5DP
V LQFRPH LV OHVV WKDQ 6K\DP
V +RZ PXFK LV 6K\DP
V LQFRPH PRUH WKDQ
5DP
VLQSHUFHQWDJHWHUPV"
D E
F G
7KHPRQWKO\VDODU\RI$%DQG&DUHLQWKHUDWLR,I&
V0RQWKO\VDODU\LV5V
PRUHWKDQWKDWRIDILQG%
VDQQXDOVDODU\
D 5V E5V
F5V G5V
,QDWRZQWKHUHDUHSHRSOHRIWKHPDUHIRUHLJQHUVDUHLPPLJUDQWV
DQGWKHUHVWDUHQDWLYHV+RZPDQ\DUHQDWLYHV"
D E
F G
7RWDOVDODU\RIWKUHHSHUVRQV$%DQG&LV5V7KH\VSHQGDQG
UHVSHFWLYHO\,IWKHLUVDYLQJVDUHLQWKHUDWLRILQG&
VVDODU\
D E
FG
7KHSRSXODWLRQRIDWRZQLV)RUHYHUPDOHVWKHUHDUHIHPDOHV,I
RIWKHPDOHVDQGRIWKHIHPDOHVDUHOLWHUDWHILQGWKHSHUFHQWDJHRIOLWHUDF\
LQWKHWRZQ
D E
ϯϴ

F G
VKHHSDQGSLJVZHUHEURXJKWIRU5V,IWKHDYHUDJHSULFHRIDVKHHSLV5V
ILQGWKHDYHUDJHSULFHRISLJ
D 5V E5V
F5V G5V
5DPZHLJKVNJPRUHWKDQ6K\DP7KHLUFRPELQHGZHLJKWLVNJ+RZPXFK
GRHV6K\DPZHLJK"
D NJ ENJ
FNJ GNJ
)LQGRXWWKHZURQJQXPEHULQWKHVHULHV
D E
F G
:KDWLVWKHORFDWLRQYDOXHRILQWKHILJXUH"
D E
F G

6(&7,21,9
/HJDO$SWLWXGH

,QVWUXFWLRQV 4XHVWLRQV )URP WKH IRXU RSWLRQV JLYHQ VKDGH WKH DSSURSULDWH
FRUUHFWRSWLRQLQWKHVSDFHSURYLGHGIRULWRQWKH205$QVZHU6KHHW
0DUNV(DFKTXHVWLRQFDUULHVRQHPDUN 7RWDOPDUNV

:KLFKLVWKHROGHVW&RGH!/DZLQ,QGLD"
D 1DUDGDVPULWL E0DQXVPULWL
F9HGDVPQWL G3UDVDUVPULWL
3ULYDWHLQWHUQDWLRQDOODZLVDOVRFDOOHG
D &LYLO/DZ E/RFDOODZV
F&RQIOLFW!ODZV G&RPPRQODZ
$QRPLQDOVXPJLYHQDVDWRNHQIRUVWULNLQJDVDOHLVFDOOHG
D (DUQHVWPRQH\ E$GYDQFHF,QWHUHVW G6RODWLXP
-RLQWKHLUVWRDSURSHUW\DUHFDOOHG
D &RKHLUV E&RSDUFHQHUV
F6XFFHVVRUV G-RLQWRZQHUV
7KHULJKWRIDSDUW\WRLQLWLDWHDQDFWLRQDQGEHKHDUGEHIRUHD&RXUWRIODZLVFDOOHG
D5LJKWLQUHPE5LJKWLQSHUVRQ]P
F)XQGDPHQWDOULJKW G/RFXVVWDQGL
,QGLDQ3DUOLDPHQWLVEDVHGRQWKHSULQFLSOHRI
D %LFDPHUDOLVP E8QLYHUVDO$GXOW)UDQFKLVH
F'\DUFK\ G)HGHUDOLVP
7KH6XSUHPH&RXUWKHOGWKDWHYLGHQFHFDQEHUHFRUGHGE\YLGHRFRQIHUHQHLQJLQWKH
FDVH
D6WDWH!0DKDUDVKWUDY3UDIXOO%'HVDL E3DUDPMLW.DXUY6WDWHRI3XQMDE
F3DSSX<DGDYY6WDWHRI%LKDU G%DFKDQ6LQJKY6WDWHRI3XQMDE
:KHQWKHPDVWHULVKHOGOLDEOHIRUWKHZURQJIXODFW!KLVVHUYDQWWKHOLDELOLW\LVFDOOHG
D 6WULFWOLDELOLW\ E9LFDULRXVOLDELOLW\
F7RUWRXVOLDELOLW\ G$EVROXWHOLDELOLW\
7KHDFWRIXQODZIXOO\HQWHULQJLQWRDQRWKHU
VSURSHUW\FRQVWLWXWHV
D 7UHVSDVV E5HVWUDLQW
ϯϵ

F$SSURSULDWLRQ G(QFURDFKPHQW
:KLFK 3DUOLDPHQWDU\ &RPPLWWHH LQ ,QGLDQ V\VWHP RI GHPRFUDF\ LV FKDLUHG E\ D
PHPEHURI2SSRVLWLRQ3DUW\"
D (VWLPDWHV&RPPLWWHH E-RLQW3DUOLDPHQWDU\&RPPLWWHH
F3XEOLF$FFRXQWV&RPPLWWHH G)LQDQFH&RPPLWWHH
6XSUHPH &RXUW KHOG WKDW 3UHDPEOH DV D EDVLF IHDWXUH RI &RQVWLWXWLRQ FDQQRW EH
DPHQGHGLQWKHFDVHRI
D *RODNQDWKY6WDWHRI3XQMDE
E 0DQHND*DQGKLY8QLRQRI,QGLD
F 65%RPPDLY8QLRQRI,QGLD
G .HVDYDQDQGD%KDUDWLY6WDWHRI.HUDOD
,QWKH\HDUWKH&RPSHWLWLRQ$FWZDVHQDFWHGUHSODFLQJ
D 7UDGH0DUNV$FW E&RS\5LJKW$FW
F&RQWUDFW$FW G0573$FW
$ULJKWWRUHFRYHUWLPHEDUUHGGHEWLV
D 8QLYHUVDOULJKW E3HUIHFWULJKW
F,PSHUIHFWULJKW G)XQGDPHQWDOULJKW
7KHODZUHODWLQJWRSULVRQHUVRIZDUKDVEHHQFRGLILHGE\
D *HQHYD&RQYHQWLRQE9LHQQD&RQYHQWLRQ
F3DULV&RQYHQWLRQ G1RQHRIWKHDERYH
3XEOLFKROLGD\VDUHGHFODUHGXQGHU
D &ULPLQDO3URFHGXUH&RGH E&LYLO3URFHGXUH&RGH
F&RQVWLWXWLRQRI,QGLD G1HJRWLDEOH,QVWUXPHQWV$FW
:KHQDSHUVRQLVSURVHFXWHGIRUFRPPLWWLQJDFULPLQDORIIHQFHWKHEXUGHQRISURRILV
RQ
D $FFXVHG E3URVHFXWLRQ
F3ROLFHRQ G&RPSODLQDQW
2IIHQFHZKLFKFDQEHFRPSURPLVHGEHWZHHQWKHSDUWLHVLVNQRZQDV
D 1RQFRPSRXQGDEOHRIIHQFH E&RJQL]DEOHRIIHQFH
F&RPSRXQGDEOHRIIHQFH G1RQFRJQL]DEOHRIIHQFH
+XVEDQGDQGZLIHKDYHDULJKWWRHDFKRWKHUVFRPSDQ\7KHULJKWLVFDOOHG
D &RQMXJDOULJKW E+XPDQULJKW
F&LYLOULJKW G)XQGDPHQWDOULJKW
$SHUVRQ
G\LQJLQWHVLDW]
PHDUKH
D 'LHGZLWKRXWOHJDOKHLUV E'LHGZLWKRXWPDNLQJDZLOO
F'LHGZLWKRXWDQ\SURSHUW\ G'LHGZLWKRXWDVRQ
,IDZLWQHVVPDNHVDVWDWHPHQWLQ&RXUWNQRZLQJLWWREHIDOVHKHFRPPLWVWKHRIIHQFH
RI
D )RUJHU\ E)DOVHKRRG
F3HUMXU\ G%UHDFKRIWUXVW
$FKLOGERUQDIWHUIDWKHU
VGHDWKLV
D 3RVWKXPRXVE+HLU
F,QWHVWDWH G%DVWDUG
$ IRUPDO LQVWUXPHQW E\ ZKLFK RQH SHUVRQ HPSRZHUV DQRWKHU WR UHSUHVHQW KLP LV
NQRZQDV
D $IILGDYLW E3RZHURIDWWRUQH\
F:LOO G'HFODUDWLRQ
7KHWHPSRUDU\UHOHDVHRIDSULVRQHULVFDOOHG
D 3DUROH E$PQHVW\
F'LVFKDUJH G3DUGRQ
ϰϬ

7KHRIIHQFHRILQFLWLQJGLVDIIHFWLRQKDWUHGRUFRQWHPSWDJDLQVW*RYHUQPHQWLV
D 3HUMXU\ E)RUJHU\
F6HGLWLRQ G5HYROW
,QGLDEHFDPHWKHPHPEHURI8QLWHG1DWLRQVLQWKH<HDU
D E F G
$SDUW\WRWKHVXLWLVFDOOHG
D $FFXVHG E3ODLQWLII F/LWLJDQW G&RPSODLQDQW

:KRKHDGVWKHIRXUPHPEHUV&RPPLWWHHDSSRLQWHGWRVWXG\WKH&HQWUH6WDWHUHODWLRQV
HVSHFLDOO\WKHFKDQJHVWRRNSODFHVLQFH6DUNDULD&RPPLVVLRQ
D -XVWLFH003DQFKLE-XVWLFH1DQDYDWL
F-XVWLFH%DPFKD G-XVWLFH.XOGLS6LQJK
1RRQHFDQEHFRQYLFWHGWZLFHIRUWKHVDPHRIIHQFH7KLVGRFWULQHLVFDOOHG
D %XUGHQRISURRI E'RXEOHFRQYLFWLRQF'RXEOHMHRSDUG\G&RUSXVGHOLFWL
$SDUWLFLSDQWLQFRPPLVVLRQRIFULPHLVSRSXODUO\NQRZQDV
D 5HVSRQGHQWE8QGHUWULDOF'HIHQGDQWG$FFRPSOLFH
:KLFKRIWKHIROORZLQJLVQRWSD\DEOHWR&HQWUDO*RYHUQPHQW"
D /DQGUHYHQXH E&XVWRPVGXW\
F,QFRPHWD[ G:HDOWKWD[
:KHUHLVWKH1DWLRQDO-XGLFLDO$FDGHP\ORFDWHG
"
D .RONDWD E%KRSDO
F'HOKL G0XPEDL
:KRKDYHFRQVWLWXWLRQDOULJKWWRDXGLHQFHLQDOO,QGLDQ&RXQV
"
D 3UHVLGHQW E&KLHI-XVWLFHRI,QGLD
F$WWRUQH\*HQHUDO G6ROLFLWRU*HQHUDO
:KLFKRIWKHIROORZLQJLVQRWLQFOXGHGLQWKH3UHDPEOHWRWKH&RQVWLWXWLRQ"
D 0RUDOLW\ E-XVWLFHF6RYHUHLJQ
G6RFLDOLVW
C&RXUWRI5HFRUG
LVD&RXUWZKLFK"
D 0DLQWDLQVUHFRUGV E3UHVHUYHVDOOLWVUHFRUGV
F&DQSXQLVKIRULWVFRQWHPSW G,VFRPSHWHQWWRLVVXHZULWV
$MXGJHRIWKH6XSUHPH&RXUWFDQEHUHPRYHGIURPRIILFHRQO\RQJURXQGVRI
D *URVVLQHIILFLHQF\ E'HOLYHULQJZURQJMXGJPHQWV
F6HQLOLW\ G 3URYHQPLVEHKDYLRULQFDSDFLW\
)LGXFLDU\UHODWLRQVKLSPHDQVDUHODWLRQVKLSEDVHGRQ
D 7UXVW E0RQH\
F&RQWUDFW G%ORRGUHODWLRQRULQFDSDFLW\
7KH&KDLUPDQRI7HKHOND(QTXLU\&RPPLVVLRQLV
D -XVWLFH.ULSDO E-XVWLFH613KXNDQ
F-XVWLFH6DKDULD G-XVWLFH/LEHUKDQ
7KHFRQFHSWRIMXGLFLDOUHYLHZKDVEHHQERUURZHGIURPWKH&RQVWLWXWLRQRI
D 8665 E8.
F86$G6ZLW]HUODQG
(YHU\GXW\HQIRUFHDEOHE\ODZLVFDOOHG
D $FFRXQWDELOLW\ E2EOLJDWLRQ
F%XUGHQ G,QFLGHQFH
7KHNLOOLQJRIDQHZERUQFKLOGE\LWVSDUHQWVLV
D 0DOIHDVDQFHE,QIDQWLFLGH
F$ERUWLRQ G)RHWLFLGH
ϰϭ

2IIHQFHRIEUHDNLQJDGLYLQHLGROLV
D 6DOXVSRSXOL E&ULPH
F6DFULOHJH G%ODVSKHP\
$SHUVRQZKRJRHVXQGHUJURXQGRUHYDGHVWKHMXULVGLFWLRQRIWKH&RXUWLVNQRZQDV
D2IIHQGHUE8QGHUJURXQG
F$EVHQWHH G$EVFRQGHU
:KDWLVDFDYHDW

D $ZDUQLQJ E$QLQMXQFWLRQ
F:ULW G&HUWLRUDUL

0XVOLPUHOLJLRXVIRXQGDWLRQVDUHNQRZQDVD'LQ
E :DNIV
F 8OHPD G4X]DW
%H\RQGZKDWGLVWDQFHIURPWKHFRDVWLVWKHVHDNQRZQDV+LJK6HD"
D PLOHV EPLOHV
FNP GPLOHV

6(&7,219
/RJLFDO5HDVRQLQJ4XHVWLRQV

,QVWUXFWLRQVTXHVWLRQV(DFKTXHVWLRQEHORZFRQVLVWVRIRQH$VVHUWLRQ$DQG
RQH5HDVRQ5([DPLQHWKHPDQGVKDGHWKHFRUUHFWDQVZHUVXVLQJWKH&RGHEHORZ
DQWKH205$QVZHU6KHHW
&RGH
D %RWK $ DQG 5 DUH LQGLYLGXDOO\ WUXH DQG 5 LV WKHFRUUHFWH[SODQDWLRQ RI $ E
%RWK$DQG5DUHLQGLYLGXDOO\WUXHEXW5LVQRWWKHFRUUHFWH[SODQDWLRQRI$F$
LVWUXHEXW5LVIDOVH
G$LVIDOVHEXW5LVWUXH

$$UHDDORQJWKH(TXDWRUUHFRUGVWKHKLJKHVWWHPSHUDWXUHWKURXJKRXWWKH\HDU
52QWKHHTXDWRUGD\VDQGQLJKWVDUHHTXDOIRUWKHODUJHVWSDUWRIWKH\HDU

$&RPPHUFLDOILVKHULHVKDYHQRWGHYHORSHGLQWURSLFV
57KHGHPDQGIRUPDULQHIRRGIURPORZLQFRPHSRSXODWLRQLVORZLQWKHWURSLFV

$/LJKWQLQJWKXQGHUHQGKHDY\UDLQDFFRPSDQ\YROFDQLFDFWLYLW\
59ROFDQRHVWKURZZDWHUYDSRXUDQGFKDUJHGSDQLFOHVLQWKHDWPRVSKHUH

$6RLOVLQVRPHSDQVRI3XQMDE+DU\DQDDQG5DMDVWKDQDUHVDOLQH
5(YDSRUDWLRQH[FHHGVSUHFLSLWDWLRQ

$7KHPRQVRRQVDUULYHVXGGHQO\LQ,QGLDLQ-XQH
57KHPRQVRRQDOORZSUHVVXUHWURXJKLVZHOOGHYHORSHGRYHU,QGLD
ϰϮ

$,QGLDEXLOWGDPVDQGUHVHUYRLUVWRPDQDJHZDWHUUHVRXUFHV
5,QGLDKDGHQRXJKH[SHULHQFHLQFDQDOV

,
$7KHOLIHH[SHFWDQF\LQ(XURSHDQFRXQWULHVLVYHU\KLJK
5(XURSHDQFRXQWULHVKDYHORZPRUWDOLW\UDWH

$7KHQRPDGLFKHUGHUVVODXJKWHUWKHLUDQLPDOVIRUPHDW
5$QLPDOVIRUPWKHFKLHIVRXUFHRIIRRGDQGOLYHOLKRRGIRUQRPDGLFKHUGHUV

$([SORLWDWLRQRIHTXDWRULDOUDLQIRUHVWRI$PD]RQEDVLQLVQRWHDV\
57KLVUHJLRQLVYHU\ULFKLQVHYHUDOW\SHVRIGHDGO\DQLPDOVDQGLQVHFWV

$7KH6HDUHPDLQVIUHHIURPLFHIURP%ULWLVK&ROXPELDWR%HULQJ6HD
5$LUPRYLQJRIIWKHFRPSDUDWLYHO\ZDUPZDWHUVRI1RUWK3DFLILF'ULIWJLYHVWKHFRDVWDO
DUHDVRI%ULWLVK&ROXPELDDZDUPHUFOLPDWH

,QVWUXFWLRQV TXHVWLRQV ,QHDFK TXHVWLRQ EHORZDUH JLYHQRQH VWDWHPHQW DQG
WZRDVVXPSWLRQV,DQG,,([DPLQHWKHVWDWHPHQWVDQGVKDGHWKHFRUUHFWDVVXPSWLRQ
ZKLFK LV LPSOLFLW LQ WKH VWDWHPHQW RQ WKH 205 $QVZHU 6KHHW XVLQJ WKH IROORZLQJ
&RGH
&RGH
D ,IRQO\DVVXPSWLRQ,LVLPSOLFLW
E ,IRQO\DVVXPSWLRQ,,LVLPSOLFLW
F ,IHLWKHURU,,LVLPSOLFLW
G ,IQHLWKHUQRU,,LVLPSOLFLW

6WDWHPHQW7KHSDWLHQW
VFRQGLWLRQZRXOGLPSURYHDIWHURSHUDWLRQ
$VVXPSWLRQV,7KHSDWLHQWFDQEHRSHUDWHGXSRQLQWKLVFRQGLWLRQ,,7KHSDWLHQWFDQQRW
EHRSHUDWHGXSRQLQWKLVFRQGLWLRQ

6WDWHPHQW'HWHUJHQWVVKRXOGEHXVHGWRFOHDQFORWKV
$VVXPSWLRQV,'HWHUJHQWIRUPPRUHODWKHU
,,'HWHUJHQWKHOSVWRGLVORGJHJUHDVHDQGGLQ

6WDWHPHQW$VWKHUHLVDJUHDWGHPDQGHYHU\SHUVRQVHHNLQJWLFNHWRIWKHSURJUDPPHZLOO
EHJLYHQRQO\ILYHWLFNHWV
$VVXPSWLRQV,7KHRUJDQLVHUVDUHQRWNHHQRQVHOOLQJWKHWLFNHWV
,,1RRQHLVLQWHUHVWHGLQJHWWLQJPRUHWKDQILYHWLFNHWV

6WDWHPHQW'RXEOH\RXUPRQH\LQILYHPRQWKV$QDGYHUWLVHPHQW
ϰϯ

$VVXPSWLRQV,7KHDVVXUDQFHLVQRWJHQXLQH
,,3HRSOHZDQWWKHLUPRQH\WRJURZ

6WDWHPHQW )LOPV KDYH EHFRPH LQGLVSHQVDEOH IRU WKH HQWHUWDLQPHQW RI SHRSOH
$VVXPSWLRQV,)LOPVDUHWKHRQO\PHGLDRIHQWHUWDLQPHQW,,3HRSOHHQMR\ILOPV

6WDWHPHQW 7R NHHS P\VHOI XSWRGDWH , DOZD\V OLVWHQ O SP QHZV RQ UDGLR $
FDQGLGDWHWHOOVWKHLQWHUYLHZERDUG
$VVXPSWLRQV,7KHFDQGLGDWHGRHVQRWUHDGQHZVSDSHU
,,5HFHQWQHZVDUHEURDGFDVWRQO\RQUDGLR

6WDWHPHQW1HYHUEHIRUHVXFKDOXFLGERRNZDVDYDLODEOHRQWKHWRSLF
$VVXPSWLRQV,6RPHRWKHUERRNVZHUHDYDLODEOHRQWKLVWRSLF,,<RX
FDQZULWHOXFLGERRNVRQYHU\IHZWRSLFV

6WDWHPHQW,QFDVHRIDQ\GLIILFXOW\DERXWWKLVFDVH\RXPD\FRQWDFWRXUFRPSDQ\
VODZ\HU
$VVXPSWLRQ,(DFKFRPSDQ\KDVDODZ\HUROLWVRZQ
,,7KHFRPSDQ\
VODZ\HULDWKRURXJKO\EULHIHGDERXWWKLVFDVH

6WDWHPHQW3UHVHQWGD\HGXFDWLRQLVLQVKDPEOHVDQGWKHFRXQWU\LVJRLQJWRWKHGRJV
$VVXPSWLRQV,$JRRGHGXFDWLRQV\VWHPLVHVVHQWLDOIRUWKHZHOOEHLQJRIDQDWLRQ
,,$JRRGHGXFDWLRQDORQHLVVXIILFLHQWIRUWKHZHOOEHLQJRIDQDWLRQ

6WDWHPHQW &KLOGUHQ DUH LQIOXHQFHG PRUH E\ WKHLU WHDFKHUV QRZDGD\V
$VVXPSWLRQV,7KHFKLOGUHQFRQVLGHUWHDFKHUVDVWKHLUPRGHOV
,,$ODUJHDPRXQWRIFKLOGUHQ
VWLPHLVVSHQWLQVFKRRO

,QVWUXFWLRQV TXHVWLRQV (DFK TXHVWLRQ EHORZ FRQWDLQV D 6WDWHPHQW RQ
UHODWLRQVKLSDQGDTXHVWLRQUHJDUGLQJUHODWLRQVKLSEDVHGRQWKH6WDWHPHQW
6KDGHWKHFRUUHFWRSWLRQRQUHODWLRQVKLSRQWKH205$QVZHU6KHHW
3RLQWLQJWRDSKRWRJUDSKDODG\WHOOV5DP,DPWKHRQO\GDXJKWHURIWKLVODG\DQG
KHUVRQLV\RXUPDWHUQDOXQFOH+RZLVWKHVSHDNHUUHODWHGWR5DP
VIDWKHU"
D 6LVWHULQODZE:LIH
F(LWKHUDRUE G1HLWKHU]QRUE
,QWURGXFLQJDPDQDZRPDQVDLG+HLVWKHRQO\VRQRIP\PRWKHU
VPRWKHU+RZLV
WKHZRPDQUHODWHGWRWKHPDQ"
D 0RWKHU E$XQW
F6LVWHU G1LHFH
6K\DPVDLG7KLVJLUOLVWKHZLIHRIWKHJUDQGVRQRIP\PRWKHU

:KRLV6K\DPWR
WKHJLUO"
D )DWKHU E*UDQGIDWKHU
F+XVEDQG G)DWKHULQODZ
3RLQWLQJWRDPDQRQWKHVWDJH6XQLWDVDLG+HLVWKHEURWKHURIWKHGDXJKWHURIWKH
ZLIHRIP\KXVEDQG+RZLVWKHPDQRQWKHVWDJHUHODWHGWR6XQLWD"
D 6RQ E+XVEDQG
F&RXVLQ G1HSKHZ
ϰϰ

,QWURGXFLQJDPDQWRKHUKXVEDQGDZRPDQVDLG+LVKURWKQU
VIDWKHULVWKHRQO\
VXQRIP\JUDQGODWKHU+RZLVWKHZRPDQUHODWHGWRKLVPDQ"
D 0RWKHU E$XQW
F6LVWHU G'DXJKWHU

,QVWUXFWLRQV TXHVWLRQV ,/, ,Q HDFK TXHVWLRQ EHORZ WZR ZRUGV DUH SDLUHG ZKLFK
KDYH FHUWDLQ UHODWLRQVKLSV $IWHU WKH GRXEOH FRORQ DQRWKHU ZRUG LV JLYHQ DQG
VKDGHWKHFRUUHFWRSWLRQRQWKH205$QVZHU6KHHWZKLFKSDLUVZLWKWKLVZRUGWDNLQJ
LQWRDFFRXQWWKHSDLUDOUHDG\JLYHQ
/HJLVODWLRQ(QDFWPHQW([HFXWLYH"
D0LQLVWHU E2IILFHU
F,PSOHPHQWDWLRQ G/HDGHU
838WWUDQFKDO%LKDU"
D-KDUNKDQG E&KKDWLVJDUK
F0DGK\D3UDGHVK G0DQLSXU
*ROG6LOYHU&RWWRQ"
D<DUQ E6LON
F)LEUH G6\QWKHWLF
%RWDQ\)ORUD=RRORJ\
D)DXQD E%LRORJ\
F)RVVLOV G3DWKRORJ\
&ROGZDYH:LQWHU/RR"
D+XPLGLW\ E)URVWELWH
F6XPPHU G6WRUP
.LQJ5R\DO6DLQW"
D5HOLJLRXV E5HG
F3ULHVWKRRG G%OXH
6FXOSWRU6WDWXH3RHW"
D3DLQWHU E6LQJHU
F3RHP G:ULWHU

/DXJK+DSS\&U\
D6DG K%LFNHULQJ
F)URZQ G&RPSODLQ
%ODFN$EVHQFH:KLWF
D5HG E3UWVFQUF
ϰϱ

F5DLQERZ G&U\VWDO
*RYHUQRU3UHVLGHQW&KLHI0LQLVWHU
"
D&RPPLVVLRQHU E$WWRUQH\*HQHUDO
&-XVWLFH G3ULPH0LQLVWHU
,QVWUXFWLRQV TXHVWLRQV (DFK TXHVWLRQ EHORZ FRQWDLQV D 6WDWHPHQW DQG WZR
&RXUVHVRI$FWLRQ,DQGG,$VVXPLQJWKHVWDWHPHQWWREHWUXHGHFLGHZKLFKRIWKH
WZRVXJJHVWHG&RXPRI$FWLRQORJLFDOO\IROORZVDQGVKDGHRUWKH2UGHU$QVZHU6KHHW
XVLQJWKH&RGHJLYHQEHORZ
&RGH
D,IRQO\,IROORZ E,IRQO\,,IROORZ
F,IHLWKHU,RU,,IROORZ G,IQHLWKHU,QRU,,IROORZ

6WDWHPHQWRQHRIWKHSUREOHPVIDFLQJWKHIRRGSURFHVVLQJLQGXVWU\LVWKHLUUHJXODUVXSSO\
RI UDZPDWHULDO7KH SURGXFHUV RI UDZ PDWHULDOV DUH QRWJHWWLQJ D UHDVRQDEOH
SULFH
&RXUVHVRI$FWLRQ,7KHJRYHPPHQWVKRXOGUHJXODWHWKHVXSSO\RIUDZPDWHULDOWRRWKHU
LQGXVWULHVDOVR
,,7KHJRYHUQPHQWVKRXOGDQQRXQFHDQDWWUDFWLYHSDFNDJHWRHQVXUH
UHJXODUVXSSO\RIUDZPDWHULDOIRUIRRGSURFHVVLQJLQGXVWU\

6WDWHPHQW7KH2IILFHU,QFKDUJHRID&RPSDQ\KDGDKXQFKWKDWVRPHPRQH\ZDVPLVVLQJ
IURPWKHVDIH
&RXUVHRI$FWLRQ,+HVKRXOGJHWLWUHFRXQWHGZLWKWKHKHOSRIWKHVWDIIDQGFKHFNLWZLWK
WKHEDODQFHVKHHW
,,+HVKRXOGLQIRUPWKHSROLFH

6WDWHPHQW,IWKHUHWLUHG3URIHVVRUVRIWKHVDPH,QVWLWXWHVDUHDOVRLQYLWHGWRGHOLEHUDWHRQ
UHVWUXFWXULQJRIWKHRUJDQLVDWLRQWKHLUFRLOWULEXWLXQPD\EHEHQHILFLDOWRWKH
,QVWLWXWH
&RXUVHRI$FWLRQ,0DQDJHPHQWPD\VHHNRSLQLRQ(OLWKHHPSOR\HHVEHIRUHFDOOLQJUHWLUHG
3URIHVVRUV
,, 0DQDJHPHQW VKRXOG LQYROYH H[SHULHQFHG SHRSOH IRU WKH V\VWHPDWLF
UHVWUXFWXULQJRIWKHRUJDQLVDWLRQ

6WDWHPHQW 7KH VDOH RI D SDUWLFXODU SURGXFW KDV JRQH GRZQ FRQVLGHUDEO\ FDXVLQJ JUHDW
FRQFHUQWRWKHFRPSDQ\
&RXUVH RI $FWLRQ , 7KH FRPSDQ\ VKRXOG PDNH D SURSHU VWXG\ RI ULYDO SURGXFWV LQ WKH
PDUNHW
,,7KHSULFHRIWKHSURGXFWVKRXOGEHUHGXFHGDQGTXDOLW\LPSURYHG

6WDWHPHQW0U;DQDFWLYHPHPEHURIWKH8QLRQRIWHQLQVXOWVKLVVXSHULRUVLQWKHRIILFH
ZLWKKLVUXGHEHKDYLRXU
&RXUVHRI$FWLRQ,+HVKRXOGEHWUDQVIHUUHGWRVRPHRWKHUGHSDUWPHQW
,,7KHPDWWHUVKRXOGEHUHIHUUHGWRWKH8QLRQ

,QVWUXFWLRQV TXHVWLRQV (DFK TXHVWLRQ EHORZ FRQWDLQV D 6WDWHPHQW DQG WZR
$UJXPHQWV,DQG,,$VVXPHWKHVWDWHPHQWWREHWUXHVKDGHWKH$UJXPHQWZKLFKLV
VWURQJRQWKH205$QVZHU6KHHWXVLQJWKH&RGHEHORZ
ϰϲ

&RGH
D,IRQO\DUJXPHQW,LVVWURQJ E,IRQO\DUJXPHQW,,LVVWURQJ
F,IHLWKHUDUJXPHQW,RU,,LVVWURQJG,IQHLWKHUDUJXPHQW,QRU,OVWURQJ

6WDWHPHQW6KRXOGDWRWDOEDQEHSXWRQWUDSSLQJZLOGDQLPDOV"
$UJXPHQWV,<HV7UDSSHUVDUHPDNLQJDORWRIPRQH\
,,1R%DQVRQKXQWLQJDQG>UDSSLQJDUHQRWHIIHFWLYH

6WDWHPHQW6KRXOGVFKRROHGXFDWLRQEHPDGHIUHHLQ,QGLD"
$UJXPHQWV,<HV7KLVLVWKHRQO\ZD\WRLPSURYHWKHOHYHORIOLWHUDF\,,1R,WZRXOG
DGGWRWKHDOUHDG\KHDY\EXUGHQRQWKHH[FKHTXHU

6WDWHPHQW6KRXOGJRYHUQPHQWMREVLQUXUDODUHDVKDYHPRUHLQFHQWLYHV"
$UJXPHQWV,<HV,QFHQWLYHVDUHHVVHQWLDOIRUDWWUDFWLQJJRYHUQPHQWVHUYDQWVWKHUH
,,1R5XUDODUHDVDUHDOUHDG\FKHDSHUKHDOWKLHUDQGOHVVFRPSOH[WKDQELJ
6RZK\RIIHUH[WUDLQFHQWLYHV

6WDWHPHQW6KRXOGOX[XU\KRWHOVEHEDQQHGLQ,QGLD
"
$UJXPHQWV,<HV7KH\DUHSODFHVIURPZKHUHLQWHPDOLRQDOFULPLQDOVRSHUDWH,,1R
$IIOXHQWIRUHLJQWRXULVWVZLOOKDYHQRSODFHWRVWD\

6WDWHPHQW6KRXOGWKHSROLWLFDOSDUWLHVEHEDQQHG"
$UJXPHQWV,<HV,WLVQHFHVVDU\WRWHDFKDOHVVRQWRWKHSROLWLFLDQV
,,,WZLOOOHDGWRDQHQGRIGHPRFUDF\

!"#$%
#!#&!$&

$GPLW&DUG1XPEHU7LPH30WR30+RXUV

205$QVZHU6KHHW1XPEHU7RWDO0DUNV

,16758&7,21672&$1','$7(6

OLNHPLVSULQWIXGJLQJRISULQWLQJPLVVLQJSDJHV4XHVWLRQV2YDOVHWFDQGDVNIRU
LVVXHRIUHOHYDQWGXSOLFDWH
1R GXSOLFDWH 4XHVWLRQ%RRNLHW RU 205$QVZHU 6KHHW VKDOO EHSURYLGHGH[FHSW LQ D
VLWXDWLRQXQGHU,QVWUXFWLRQ,DERYH
(QWHU\RXU'LJLW$GPLW&DUG1XPEHUDQG'LJLW205$QVZHU6KHHW1XPEHULQ
WKHVSDFHSURYLGHGDERYHLQWKH4XHVWLRQ%RRNOHWZLWK%DOO3RLQW3HQRQO\
(QWHU\RXU'LJLW$GPLW&DUG1XPEHULQWKHVSDFHLQWKH205$QVZHU6KUHWZLWK
%DOO3RLQW3HD2QO\DQGVKDGHWKHUHOHYDQWRYDOVZLWK+%3HQFLO2QO\
ϰϳ

7KHUH DUH REMHFWLYH TXHVWLRQV (DFK TXHVWLRQ FDUULHV RQH PDUN (DFK TXHVWLRQ
FRQVLVWVRIIRXUFKRLFHVRIDQVZHUV6HOHFWWKHPRVWDSSURSULDWHDQVZHUDQGVKDGHWKH
FRUUHVSRQGLQJRYDOLQWKH205VKHHWZLWK+%3HQFLO2QO\,IPRUHWKDQRQHRYDOLV
VKDGHGWKHTXHVWLRQVKDOOEHGHHPHGWREHZURQJ7KHUHLVQRQHJDWLYHPDUNLQJIRU
ZURQJDQVZHUV
6SHFLILFLQVWUXFWLRQVDUHJLYHQDWWKHEHJLQQLQJRIHDFKTXHVWLRQRUVHWVRITXHVWLRQ
5HDGWKHPFDUHIXOO\EHIRUHDQVZHULQJ
7RWDOQXPEHURISDJHVLQWKH4XHVWLRQERRNOHWLVLQFOXGLQJWKHWKUHHEODQNSDJHV
3DJH1R IRUURXJKZRUN
3RVVHVVLRQRIDOONLQGVRIHOHFWURQLFJDGJHWVLQWKH([DP+DOOLVVWULFWO\SURKLELWHG
3RVVHVVLRQDQGRUXVHRIDQ\XQIDLUPHDQVVKDOOGLVTXDOLI\WKHFDQGLGDWHDQGGHFLVLRQ
RIWKH&HQWUH6XSHULQWHQGHQWLQWKLVUHJDUGVKDOOEHILQDO

6LJQDWXUH6HDORI&HQWUH6XSHULQWHQGHQW

7KLV %RRNOHW FRQWDLQV REMHFWLYH TXHVWLRQV (DFK TXHVWLRQ FDUULHV RQH PDUN (YHU\
TXHVWLRQFRQWDLQVIRXUFKRLFHVRIDQVZHUV6HOHFWWKHPRVWDSSURSULDWHDQVZHUDQGVKDGH
WKHFRUUHVSRQGLQJRYDOLQWKH205VKHHWZLWK+%SHQFLORQO\$QVZHUDOOWKHTXHVWLRQV
(QJOLVK

)LOOLQWKHEODQNVLQTXHVWLRQV,WR
O6ODYHU\ZDVQRWGRQHDZD\XQWLOWKHODVWFHQWXU\
DZLWK EIRUFWR GRII

'RHVKHQRWWDNHKLVIDWKHU"
DEHIRUH EIRUFDIWHU GOLNH

:HZLOOKDYHWRWDNHPRUHVWDIILIZH
UHWRWDNHRQPRUHZRUN
DXS ERQWR FLQWRRQ G

0RWKHUWDNHVHYHU\WKLQJLQKHU
DVWHSV EIDFH FVWULGH G

ZRUN
6DOHKDYHUHDOO\WDNHQQRZ
DXS ERQFRI GRII
ϰϴ

7KH FRQVWLWXHQW SKUDVHV RI D VHQWHQFH DUH MXPEOHG XS LQ TXHVWLRQ QR 6HOHFW WKH
PRVWDSSURSULDWHVHTXHQFHWRPDNHWKHVHQWHQFHPHDQLQJIXO

LEXLOWRQWKHVLWHRIDFKXUFKGHVWUR\HG
LL LQWKHKLOO\DUHDRIWKHFLW\LVWKHIDPRXV6KDQGRQ6WHHSOH
LLL WKHEHOOWRZHURI6W$QQH
V&KXUFK
LY ZKHQWKHFLW\ZDVEHVLHJHGE\WKH'XNHRI0DUOERURXJK
DLLLLLLLY ELLLLLLLY
FLYLLLLLL GLLLLLLLY

LQRODZJLYLQJHIIHFWWRWKHSROLF\RIWKHVWDWHWRZDUGVVHFXULQJDOORUDQ\RIWKHSULQFLSOHV
ODLGLQSDUW,9
LL QRWZLWKVWDQGLQJDQ\WKLQJFRQWDLQHGLQ$UWLFOH
LLL DQGQRODZFRQWDLQLQJDGHFODUDWLRQWKDWLWLVIRUJLYLQJHIIHFWWRVXFKSROLF\VKDOOEH
FDOOHGLQTXHVWLRQLQDQ\FRXUWRQWKHJURXQGWKDWLWGRHVQRWJLYHHIIHFWWRVXFKSROLF\
LYVKDOOEHGHHPHGWREHYRLGRQWKHJURXQGWKDWLWLVLQFRQVLVWHQWZLWKRUWDNHVDZD\
RUDEULGJHVDQ\RIWKHULJKWVFRQIHUUHGE\$UWLFOHRU
DLLMLLLLY ELYLLLLLL
FLLLLYLLL GLLLLLLLY

LQHLWKHU+RXVHVKDOOSURFHHGIXUWKHUZLWKWKH%LOO
LL LIKHGRHVVRWKHKRXVHVVKDOOPHHWDFFRUGLQJO\
LLL EXWWKH3UHVLGHQWPD\DWDQ\WLPHDIWHUWKHGDWHRIKLVQRWLILFDWLRQVXPPRQWKH
+RXVHVWRPHHWLQDMRLQWVLOWLQJIRUWKHSXUSRVHVSHFLILHGLQWKHQRWLILFDWLRQDQG
LY ZKHUH WKH3UHVLGHQW KDV XQGHUFODXVH ,UDFWLILHGKLV LQWHQWLRQ RIVXPPRQLQJ
WKH+RXVHVWRPHHWLQDMRLQWVLWWLQJ

DLYLLLLLL ELYLLLLLL
FLYLLLLLL GLLLLLLLY
6XEVWLWXWH WKH XQGHUOLQHG SKUDVHV ZLWK DQ\ RI WKH JLYHQ FKRLFHV WR H[SUHVV WKH RSSRVLWH
PHDQLQJLQWKHVHQWHQFHVLQTXHVWLRQVQXPEHU

6KHDOZD\VSUDLVHVHYHU\WKLQJ,VD\
DSLFNVKROHVLQ EGLVOLNHVFUHEXNHVGSLFNVKROHVWR

+HRIWHQVD\VKRZZRQGHUIXOKLVVFKRROLV"
DVD\VKHLVXQZRUWK\EDSSUHFLDWHV FUXQVXSGUXQVGRZQ

6KH VDLG , ZDV WKH EHVW ERVV WKH\
G HYHU KDG ,W ZDV REYLRXV VKH ZDV SUDLVLQJ PH
VLQFHUHO\
DQRWDSSUHFLDWLQJPH EEHIRROLQJPH
FEXWWHULQJPHXS GGLVOLNLQJPH

,GHQWLW\WKHSDUWRIVSHHFKRIWKHXQGHUOLQHGZRUGVLQWKHJLYHQVHQWHQFHVIURP
4XHVWLRQVQXPEHUWR
,PXVWSHUIHFWWKHRSHUDWLRQWRPDNHWKHSHUIHFWURERW
DYHUE EDGYHUE FDGMHFWLYH GQRXQ
ϰϵ

$NLQGO\SHUVRQLVRQHZKREHKDYHVNLQGO\
DQRXQ ESUHSRVLWLRQ FDGYHUE GYHUE
+HLVQRWQRUPDOO\DYHU\IDVWUXQQHUEXWKHUXQVIDVWLQPDMRUHYHQWV
DDGYHUE EDGMHFWLYH FYHUE GQRXQ

5HDGWKHIROORZLQJSDVVDJHFDUHIXOO\DQGDQVZHUTXHVWLRQQXPEHUVWR

$QOLJRQHZDVRQHRIWKHGDXJKWHUVRI2HGLSXVWKDWWUDJLFILJXUHRIPDOHSRZHUZKRKDG
EHHQ FXUVHG E\ *RGV IRU PLVWDNHQO\ NLOOLQJ KLV IDWKHU DQG VXEVHTXHQWO\ PDUU\LQJ KLV
PRWKHUDQGDVVXPLQJWKHWKURQHRI7KHEHV$IWHUWKHGHDWKRI2HGLSXVFLYLOZDUEURNHRXW
DQGDEDWWOHZDVZDJHGLQIURQWRIWKHVHYHQWKJDOHRI7KHEHVKLVWZRVRQVOHGRSSRVLQJ
IDFWLRQV DQG DO WKH KHLJKW RI WKH EDWWOH IRXJKW DQG NLOOHG HDFK RWKHU 2HGLSXV
EURWKHU
&UHRQXQFOHR&$QOLJRQHZDVQRZXQGLVSXWHGPDVWHURIWKHFLW\&UHRQUHVROYHGWRPDNH
DQH[DPSOHRIWKHEURWKHUZKRKDGIRXJKWDJDLQVWKLP3RO\QLFHVE\UHIXVLQJWKHULJKWRI
KRQRXUDEOHEXULDO7KHSHQDOW\RIGHDWKZDVSURPXOJDWHGDJDLQVWDQ\ZKRVKRXOGGHI\
WKLVRUGHU

$QWLJRQHZDVGLVWUDXJKW 3RO\QLFHVKDGEHHQ OHIW XQEXULHGXQZHSW D IHDVW RI IOHVK IRU
NHHQH\HGFDUULRQELUGV $QWLJRQH DVNV KHUVLVWHU,VPHQH IRU LWZDVD FKDOOHQJH WR KHU
UR\DOEORRG1RZLWLVWLPHWRVKRZZHDWKHURUQRW\RXDUHZRUWK\RI\RXUUR\DOEORRG,V
KHQRWP\EURWKHUDQG\RXUV":KHWKHU\RXOLNHLWRUQRW",VKDOOQHYHUGHVHUWKLPQHYHU
%XW ,VPHQH UHVSRQGV +RZ FRXOG \RX GDUHZKHQ &UHRQ KDV H[SUHVVO\ IRUELGGHQ LW"
$QWLJRQHZHDUHZRPHQLWLVQRWIRUXVWRILJKWDJDLQVWPHQ:LWKDWRXFKRIELWWHUQHVV
$QWLJRQHUHOHDVHVKHUVLVWHUIURPWKHREOLJDWLRQWRKHOSKHUEXWDUJXHVVKHFDQQRWVKUXJ
RIIWKHEXUGHQ,I,GLHIRULWZKDWKDSSLQHVV/LYHLI\RXZLOOOLYHDQGGHI\WKHKROLHVWRI
ODZVRIKHDYHQ

:KDWLVWKHPDLQWKHPHRIWKHVWRU\RI0WLJRQH"
D 2QHPXVWEHWUXWKIXODQGKRQHVW
E 7KHUHLVDFRQIOLFWEHWZHHQWKHODZVRIPHQDQGKHDYHQO\ODZV
F 2QHPXVWEHWUXHWRRQH
VNLQV
G :DULVDQHYLO

:K\GLG$QWLJRQHGHFLGHWRGHI\WKHRUGHUVRI&UHRQ"
D 6KHORYHGKHUEURWKHU
E 6KHZDVWRJLYHDQKRQRUDEOHEXULDOWRKHUEURWKHU
F 6KHIHOWVKHZDVERXQGE\KHUKHDYHQO\REOLJDWLRQ
G 7RWHDFK&UHRQDOHVVRQ

:KDWLQ\RXURSLQLRQZRXOGKDYHEHHQWKHORJLFDOHQGRIWKHVWRU\"
D $QWLJRQHPLJKWKDYHDJUHHGZLWKKHUVLVWHUDQGUHIUDLQHGIURPJLYLQJDEXULDOWR
3RO\QLFHV
E $QWLJRQHPLJKWKDYHEHHQDOORZHGE\&UHRQWRJLYHDGHFHQWEXULDOWRKHUEURWKHU
F $QWLJRQHPLJKWKDYHGHILHGWKHRUGHURI&UHRQEXWIRUJLYHQE\KLP
G $QWLJRQHPLJKWKDYHEHHQH[HFXWHGIRUGHI\LQJWKHRUGHURIWKHNLQJ

:KDWZDVWKHVWDWXVRIZRPHQLQWKHFRQWHPSRUDU\VRFLHW\"7KH\
D ZHUHOLEHUDWHG
E FRXOGKDYHWDNHQWKHLURZQGHFLVLRQV
F FRQVLGHUHGWKHPVHOYHVLQIHULRUDQGVXERUGLQDWHWRPHQ
ϱϬ

G FODLPHGHTXDOLW\ZLWKPHQ

:K\GLGDFLYLOZDUEUHDNRXWLQ7KFEFV"7KHZDUEURNHRXWEHFDXVH
D RIWKHFXUVHRIWKH*RGV
E WKHEURWKHUVRI$QWLJRQHZHUHJUHHG\
F WKHUHZDVDILJKWDPRQJVRQVRI2HGLSXVIRUWKHLQKHULWDQFHRIWKHNLQJGRP
G WKHUHZDVDFRQIOLFWEHWZHHQDVRQRI2HGLSXVDQG&UHRQ

$FDUULRQELUGLVDELUG
D RISUH\ EZKLFKHDWVKXPDQIOHVK
FZKLFKFDWVGHDGERGLHV GZKLFKHDWVRQO\JUDLQ

:K\GLG&UHRQGHQ\GHFHQWEXULDOWR3RO\QLFHV"+HGLGVREHFDXVH
D KHGLGQRWORYH3RO\QLFHV E3RO\QLFHVIRXJKWDJDLQVW&UHRQ
F3RO\QLFHVZDVGLVREHGLHQWWR&UHRQG3RO\QLFHVGLGQRWVKRZEUDYHU\

:K\GLG,VPHQHQRWVXSSRUW$QWLJRQH",VPHQH
D ZDVZHDNDQGGLGQRWKDYHWKHFRXUDJHWRGHI\RUGHUVRIWKHSRZHUIXONLQJEGLG
QRW FRQVLGHU LW ULJKW WR GHI\ WKH NLDJ F GLG QRW WKLQN LW ILW WR GHI\ KHU XQFOH
HVSHFLDOO\DIWHUWKHGHDWKRIKHUIDWKHUGGLGQRWEHOLHYHWKDW3RO\ULFHVGHVHUYHG
EHWWHUWUHDWPHQW

:K\GLGWKH*RGVFXUVH2HGLSXV"%HFDXVH2HGLSXV
D NLOOHGKLVIDWKHUDQGPDUULHGKLVPRWKHU
E NLOOHGKLVIDWKHU
F PDUULHGKLVPRWKHU
G FRPPLWWHGDQXQNQRZQVLQ

'RHVWKHVWRU\DSSURYHWKHSULQFLSOHRIYLFDULRXVOLDELOLW\",IVRKRZ"
D 1RLWGRHVQRW
E <HVLWGRHVEHFDXVHRIWKHDFWVRI2HGLSXVKLVFKLOGUHQVXIIHUHG
F <HVLWGRHVEHFDXVHKLVIDWKHUZDVNLOOHGE\2HGLSXV
G <HVLWGRHVEHFDXVHKHPDUULHGKLVPRWKHU

6HOHFWWKHPHDQLQJRIWKHXQGHUOLQHGLGLRPVDQGSKUDVHVLQVHQWHQFHVLQTXHVWLRQVWR

,KDYHKLWXSRQDJRRGSODQWRJHWULGRIKLP
D IRXQG EFKDQFHGXSRQ
FGHFLGHGWREHDWKLP GERUURZHG

+HLVVWLFNLQJRXWIRUEHWWHUWHUPV
DWKUHDWHQVWRWDNHDFWLRQ ELQVLVWVRQXVLQJWKHIRUFH
FGHFLGHVWRJLYHFRQFHVVLRQV GSHUVLVWVLQGHPDQGLQJ

+HEURNHRIILQWKHPLGGOHRIWKHVWRU\
DIDLOHG EEHJDQFU\LQJ
FVWRSSHGVXGGHQO\ GIHOWXQHDV\

+HUHIXVHGWREHOHGE\WKHQRVH
ϱϭ

DWRIROORZOLNHDQDQLPDO EWREHWUHDWHGDVDIRRO
FWRIROORZVXEPLVVLYHO\ GWREHKHDWHGYLROHQWO\

7KHQHZFRWWRQPLOOLVPRUWJDJHGXSWRWKHHYH
D DSSDUHQWO\ EFRPSOHWHO\
FGHFHSWLYHO\ GDFWXDOO\

:KHQWKH\HPEUDFHGDQHZUHOLJLRQLWLVVDIHWRVD\WKH\GLGLWIRUORDYHVDQGILVKHV
DVHOIOHVVO\ EKRQHVWUHDVRQV
FPDWHULDOEHQHILWV GEHFDXVHRIIHDU

&KRRVHWKHFRUUHFWVSHOOLQJRXWRIIRXUFKRLFHVLQTXHVWLRQVQRO

D0LVRJ\QLVWV E0\VRJ\QLVWV F0\VRJLQLVWV G0\VDJ\QLVWV
D$UDFQRSKRELD E$UDQFKRSKRELDF$URFKQRSKRELDG$UDFKQRSKRELD
D&LQDPRQ E&LQQDPRQ F&LQQDPDQ G&LQDPDQ
D$OFRKRO E$OFKRKRO F$OFKRKDO G$OFKRKHO
D%LRFO\PDWDORJ\E%LRFOLPDWDORJ\F+LRFOLPDWRORJ\G%LRFOLPDWHORJ\

6HOHFW WKH FRUUHFW PHDQLQJV RI WKH JLYHQ ZRUGV LQ TXHVWLRQ QXPEHU WR
/H[LFRQ
D QXPEHU EOHJDOGRFXPHQW FGLFWLRQDU\GFDSWDLQ
VGRJ
+H[
DFUXGHSHUVRQ EKHUE FSDUURWGHYLOVSHOO
6HPLQDU\
DFKDSHO EFROOHJH FFRQYRFDWLRQKDOOGKRVWHO

/LWHUJ\
D SUD\HU ESULHVWFULWXDOGFKXUFK

/DLW\
D FKXUFKPHPEHUVQRWEDSWL]HG EFKXUFKPHPEHUVEDSWL]HG
FSULHVWVGFKXUFKPHPEHUVZKRDUHQRWRUGDLQHGSULHVWV

*HQHUDO.QRZOHGJH

LQ0DOD\VLDWKHZRUG
EKXPLSXWUD
UHIHUVWR
D 0DOD\V E&KLQHVH F,QGLDQV G%XGGKLVWV

:KDWZDVWKHUHDOXDPHRIEOXQVKL3UHPFKDQG"
D 1DEDE5DLE'KDQSDW5DL
ϱϮ

F5DP&KDQGUD6ULYDVWDYD G+DUL6KDQNDU
:KRLVWKHDXWKRURI
2OG0DQDQGWKH6HD
"IDFWRU\
D-RKQ5XVNLQE5DMD5DR F*XQWHU*UDVV
G(PHVW+HPLQJZD\
3URSKHW0RKDPPHGZDVERUQLQ
D$'E$' F$' G$'
:KHQZDVWKH)LUVW:RUOG:DUGHFODUHG"

DE F G

'HRGKDUWURSK\LVJLYHQIRUWKHJDPHRI

D&ULFNHWE)RRWEDOO F+RFNH\ G*ROI
3DUL\DU:LOG/LIHVDQFWXDU\LVVLWXDWHGLQWKHVWDWHRI
D7DPLOQDGX E.DPDWDNDF.HUDOD G$QGKUD3UDGHVK

1DSDQDJDULQ0DGK\DSUDGHVKLVNQRZQIRU
DVWHHOPLOO EVXJDUPLOOV FSRWWHULHV G QHZV SULQW

:KRGHVWUR\HGWKH6RPQDOKWHPSOHLQ*XMUDW"
D 0RKDPPHG*KRXUL E0DKPXG*KD]QDYL
F&KDQJKH].KDQ G7DLPXU/DQJ

,Q&DSH7UDIDOJDUWKHIDPRXVEDWWOHRI7UDIDOJDUZDVIRXJKWLQ:KHUHLV&DSH
7UDIDOJDUVLWXDWHG"
D ,WDO\ E*UHHFH F6SDLQ G3RUWXJDO

/XPELQLLVWKHSODFHZKHUHWKH%XGGKD
DDWWDLQHGQLUYDQD EDWWDLQHGHQOLJKWHQPHQW
FZDVERQWGZDVPDUULHG

*DOYDQRPHWHULVDQLQVWUXPHQWWRPHDVXUH
D UHODWLYHGHQVLW\RIOLTXLGV EHOHFWULFFXUUHQWV
FSUHVVXUHRIJDVHV GGLVWDQFHV

:KRZURWH
0XGUD5DNVKDVD
"
D 9LVKDNKDGDWWD E%DQD%KDWWD F.DOLGDVD G -D\D
'HY

7KHYHQXHRI$VLDQ*DPHVLQZDV
D %HLMLQJ E-DNDUWD F%DQJNRN G1HZ'HOKL

LVNQRZQIRU
D YLVLWRI6LPRQ&RPPLVVLRQWR,QGLD
E FRQJUHVVUHVROXWLRQIRUFRPSOHWHLQGHSHQGHQFHRI,QGLD
F FRPLQJRI,QGLDQ1DWLRQDO&RQJUHVVXQGHUWKHOHDGHUVKLSRI0DKDWPD
*DQGKL
ϱϯ

G EXPWDZDVPDGHDSDUWRI,QGLD

/16$LUDYDWLV,QGLD
V
D DPSKLELRXVVKLSEVXEPDULQH FGHVWUR\HU GIULJDWH

$VOUD0LVVLOHLV
D VXUIDFHWRVXUIDFHPLVVLOH EVXUIDFHWRDLUPLVVLOH
FDLUWRVXUIDFHPLVVLOH GDLUWRDLUPLVVLOH

1HKP,QVWLWXWHRI0RXQWDLQHHULQJLVVLWXDWHGDW
D 1DLQLWDO E'DUMHHOLQJF6KLPODG8WWDUNDVKL

7KHFKLHIJXFVWRQWKH
5HSXEOLFGD\RI,QGLDZDVWKH3UHVLGHQWRI
D8]EHNLVWDQ E7DMLNLVODQF.DMDNLVWDQ G6RXWK$IULFD

:KLFKRIWKHIROORZLQJZDVQRWWKHEDVHRI/77(EHIRUHEHLQJFDSWXUHGE\6ULODQNDQ
)RUFHV
"
D (OHSKDQW3DVV K.LOLQRFKFKL F0XOODLOKLYX G0XULGNH

:KR ZDV JLYHQ &RO & . 1D\XGX /LIH 7LPH $FKLHYHPHQW $ZDUG IRU IRU
H[HPSODU\FRQWULEXWLRQWRFULFNHW
D .DSLO'FYE*XQGDSSD9LVKZDQDWKF6XQLO*DYDVNDUG9LMD\
+D]DUF

:KRLVWKHIRUHLJQPLQLVWHURI(XURSHDQ8QLRQ"
D %DURQHVV$VKORQE0DVVLPR'
$OHPD
F'DYLG0LOLEDQG G&DUO+LOGW

:KRLVWKHDXWKRURIC*RGDQ
"
D %KLVKPD6DKDQLE3UHPFKDQG
F0DQRKDU6K\DP-RVKLG6KDUDG&KDQGUD&KDWWRSDGK\D\

:KLFKSROLWLFDOSDUW\GRHV5DM%DEEDUEHORQJWR"
D 6DPDMZDGL E%KDUDWL\D-DQDOD3DUW\
F&RQJUHVV G%DKXMDQ6DPDM3DUW\

,QZKLFK\HDU%DVWLOOHIHOORQ
RI-XO\"
D E F GQRQHRIWKHP
$OEHUWR)XMLPDULLVWKHIDUPHUSUHVLGHQWRI
D -DSDQE3HUX F6RXWK.RUHD G9LHWQDP

:KLFKRIWKHIROORZLQJLVWKHQDWLRQDOULYHURI
,QGLD"
D %UDKPDSXWUDE1DUPDGD F*DQJD G.DYHUL
ϱϰ

7KHKLJKHVWQXPEHURIWHOHSKRQHXVHUVDUHLQ
D&KLQDE86$ F&DQDGD G,QGLD

7KHSUHVLGHQWRI0DOGLYHVLV
D0DXPRRP$EGHO*DMQHH E0RKDPPDG$VKUDI
F0DKPRRG$ODP G0RKDPPHG1DVKHHG

$UDELQGD5DMNKRZDLVDPHPEHURI
D %-3 E$VVDP*DQD3DULVKDGF0DRLVW&HQWUHG8OID

7KHEUHDNWKURXJKLQWKHLGHDVRI'DUZLQRQWKHHYROXWLRQRIVSHFLHVFDPHDIWHUKLVYLVLW
WRDFOXVWHURILVODQGVDQGZKHUHKHVDZWKDWHDFKLVODQGVXSSRUWHGLWVRZQIRUPRI
ILQFK1DPHWKHLVODQGV
"
D ,FHODQG E*UHHQODQG F*DODSDJRVG&KULVWLDQ,VODQGV

0DKDWPD*DQGKLQHYHUEHFDPHD1REHO/DXUHDWHEXWKHZDVQRPLQDWHGILYHWLPHV,Q
ZKLFKRIWKHIROORZLQJ\HDUVKHZDVQRWQRPLQDWHG"
D E F G

:KLFKRIWKHIROORZLQJFRXQWULHVKDVQRWWLOOWKHHQGRIGHFRGHGWKHHQWLUHJHQRPH
RIDKXPDQEHLQJ"
D,QGLD E5XVVLD F&KLQD G&DQDGD

:KHQZDVWKH8QLYHUVLW\RI%RPED\HVWDEOLVKHG"
D E F G

+DUDUHLVWKHFDSLWDORI
D =DPELD E=DLUH5HSXEOLFF=LPEDEZH G<HPHQ
%HIRUHWKH,QGLDQWHDPOHIWIRU&RQIHUHQFHRQ&OLPDWH&KDQJHDW&RSHQKDJHQ
-DLUDP5DPHVKDQQRXQFHGWKDW,QGLDZRXOGZRUNIRUYROXQWDU\UHGXFWLRQRI
D WRSHUFHQW EWRSHUFHQW
FWRSHUFHQW G WR SHUFHQW LQ HQHUJ\
LQWHQVLW\LQFRPSDUHGWR
:KLFKLVWKHODUJHVWLVODQGLQWKHZRUOGLI$XVWUDOLDLVQRWFRQVLGHUHGDQLVODQG"
D ,FHODQG E%RUQHR F6XPDWUD G*UHHQODQG

,QGR3DNVXPPLWEHWZHHQ3DUYH]0XVKDUUDIDQG$WDO%LKDUL%DMSD\HHZDVKHOGLQ
DW
D'HOKL E6KLPOD F$JUD G0XPEDL

,Q0D\LQWKHILQDORI6XOWDQ$DQ6KDK&KDPSLRQVKLS,QGLDQPHQ
V
+RFNH\WHDPZDVGHIHDWHGE\
D3DNLVWDQE$UJHQWLQDF1HZ=HDODQG G&DQDGD

:KLFKRIWKHIROORZLQJLVQRWDXQLRQWHUULWRU\"
D7ULSXUDE'DPDQDQG'LXF/DNVKDGZHHSG3XGXFKHUU\

:KRZDVWKHIRXQGHUHGLWRURI.HVDUL"
D ODOD/DMSDW5DL E%DO*DQJDGKDU7LODN
ϱϱ

F*RSDO.ULVKQD*RNKOH G'DGDEKDL1DRURML

:LWKZKRVHSHUPLVVLRQGLGWKH(QJOLVKVHWXSWKHLUILUVWIDFWRU\DW6XUDW"
D $NEDU E6KDKMDKDQ F-DKDQJLU G
$XUDQJ]FE

7KHJURXSRIQDWLRQVNQRZQDV*VWDUWHGDV*:KLFKDPRQJWKHIROORZLQJZDV
QRWRQHRIWKHP"
D &DQDGD E,WDO\ F5XVVLD G-DSDQ

(PSHURU$NEDUWKH*UHDWGLHGLQWKH\HDU
D E F G

:KDWZDVWKHQDPHRI(PSHURU6KDKMDKDQEHIRUHKHEHFDPH(PSHURU"
D.XVUDX E.KXUUDP F3DUYH] G6KDKHU\DU

:KLFKRIWKHIROORZLQJWUHHVKDVPHGLFLQDOYDOXH"
DSLQH EWHDN FRDN GQHHP

,GHQWLI\WKHPDLQSULQFLSOHRQZKLFKWKH3DUOLDPHQWDU\V\VWHPRSHUDWHV"
D5HVSRQVLELOLW\RIH[HFXWLYHWROHJLVODWXUHE6XSUHPDF\RIGHPRFUDF\
F5XOHRIODZG6XSUHPDF\RIWKHFRQVWLWXWLRQ

*UHDWWHQQLVSOD\HU%MRP%RUJEHORQJVWRZKLFKFRXQWU\"
D ,WDO\ E/DWYLD F86$ G6ZHGHQ

:KLFKRIWKHIROORZLQJLVWKHQDWLRQDOVRQJRI,QGLD"
D 9DQGH0D>DUDPE-DQDJDQDPDQDDGKLQD\DN
F<HPHUDFKDPDQ\HPHUDFKDPDQ G6DUHMDKDQVHDFKFKKD

:KLFKFRXQWU\ZDVNQRZQDVVLFNPDQRI(XURSH"
D *UHHFH E/DWYLD F7XUNH\ G$XVWULD

/HJDO$SWLWXGH

:KLFKRIWKHIROORZLQJMXGJHVKDGQHYHUEHDQWKHFKDLUPDQRIWKH/DZ&RPPLVVLRQRI
,QGLD"
D -XVWLFH5&/DKRWL E-XVWLFH$5/DNVKDPDQDQ
F-XVWLFH-HHYDQ5HGG\ G-XVWLFH-DJDQQDGKD5DR

:KRDPRQJWKHIROORZLQJZDVWKHILUVWFKLHI,QIRUPDWLRQ&RPPLVVLRQHURI,QGLD"
D :DMDKDW+DELEXOODK E,UIDQ+DELE
F7DKLU0DKPRRG G1DMPD+HSWXOODK

57,VWDQGVIRU
D 5HYHQXHWUDQVDFWLRQVLQ,QGLD E5HVHDUFKDQG7HFKQRORJ\,QVWLWXWH
ϱϲ

F5XUDODQG7UDQVSDUHQF\LQIUDVWUXFWXUH G5LJKWWRLQIRUPDWLRQ

)LGXFLDU\UHODWLRQVKLSLVUHODWLRQVKLSEDVHGRQ
D FRQWUDFW EWUXVW FEORRGUHODWLRQVKLS GPRQH\

+XPDQULJKWVGD\LVREVHUYHGRQ
D )HEUXDU\ E
1RYHPEHUF2FWREHU G
'HFHPEHU

C1RIDXOWOLDELOLW\
PHDQV
D OLDELOLW\IRUGDPDJHFDXVHGWKURXJKQHJOLJHQFH
E OLDELOLW\IRUGDPDJHFDXVHGWKURXJKIDXOW
F DEVROXWHOLDELOLW\HYHQZLWKRXWDQ\QHJOLJHQFHRUIDXOW
G IL[:RPIURPOLDELOLW\

$QCHQFXPEUDQFH
LQOHJDOSDUODQFHLVD
D OLDELOLW\RQSURSHUW\ EJUDQWRISURSHUW\
FJLIWRISURSHOW\ GUHVWULFWLRQDQSURSHUW\

$KXVEDQGDQGZLIHKDYHDULJKWWRHDFKRWKHU
VFRPSDQ\7KLVULJKWLVFDOOHG
D PDWULPRQLDOULJKWEFRQVRUWLXPULJKW
FPDULWDOULJKW GFRQMXJDOULJKW

5HOHDVHRISULVRQHUEHIRUHFRPSOHWLRQRIKLVVHQWHQFHLVFDOOHG
D UHOHDVHESDUROH FDFTXLWWDO GOHDVH
5HVXOWRIVXFFHVVIXOSURVHFXWLRQLV
G FKDUJH
D DFTXLWWDOEGLVFKDUJH FFRQYLFWLRQVKHHWLQJ
7KHPDQDJHURIZDTILVNQRZQDV
D 6DMMDGDQDVKLQE,&KDGLP F0XWDZDOOLG0XMDZDU

,SVRIDFWRPHDQV
D LQSODFHRI EE\UHDVRQRIWKDWIDFW
FE\WKHVDPHVRXUFH GE\WKHZD\

5HTXLVLWLRQ
PHDQV
D SHUPDQHQWWUDQVIHURIWKHWLWWOHRIWKHSURSHUW\
E VXSHUYLVLRQRISURSHUW\
F WDNLQJFRQWURORISURSHUW\WHPSRUDULO\
G WDNLQJSRVVHVVLRQSHUPDQHQWO\

&RUURERUDWLYHHYLGHQFH
PHDQV
D PDLQHYLGHQFHLQDFDVH
E HYLGHQFHZKLFKVXSSRUWVRWKHUHYLGHQFH
F HYLGHQFHWKDWSURYHVWKHJXLOWRIDQDFFXVHGSHUVRQ
G HYLGHQFHRIDSHUVRQZKRVXSSRUWVWKHDFFXVHG

([SDUWHGHFLVLRQPHDQVDGHFLVLRQJLYHQ
D DIWHUKHDULQJERWKWKHSDUWLHV
ϱϳ

E ZLWKRXWSURSHUSURFHGXUH
F DIWHUREVHUYLQJSURSHUSURFHGXUH
G ZLWKRXWKHDULQJWKHRSSRQHQW

:KLFKRIWKHIROORZLQJFRQVWLWXWLRQVLVDXQLWDU\FRQVWLWXWLRQ"
D 86 E%ULWLVK F,QGLDQ G$XVWUDOLDU

:KLFKRIWKHIROORZLQJLVQRWDIXQGDPHQWDOULJKWLQ,QGLD"
D ULJKWWRIRUPDVVRFLDWLRQEIUHHGRPRIUHOLJLRQ
FULJKWWRSURSHUW\ GULJKWWRPRYHWKURXJKRXWWKHWHUULWRU\RI,QGLD

:KLFKRIWKHIROORZLQJPDUULDJHVLVDSSURYHGE\,VODPLFODZ"%HWZHHQD0XVOLP
D PDOHDQGD&KULVWLDQIHPDOH EIHPDOHDQGD+LQGXPDOH
FIHPDOHDQGD&KULVWLDQPDOH GIHPDOHDQGD-HZPDOH

:KLFKRIWKHIROORZLQJFRQVWLWXWLRQVZKHQIUDPHGGLGQRWSURYLGHIRUMXGLFLDOUHYLHZ"
D ,QGLDQ E3DNLVWDQL F86 G$XVWUDOLDQ

5DWLRGHFLGHQGLPHDQV
D DMXGLFLDOGHFLVLRQ
E SDUWRIWKHMXGJPHQWZKLFKSRVVHVVHVDXWKRULWY
F DQ\REVHUYDWLRQPDGHE\WKHFRXUWZKLFKJRHVEH\RQGWKHUHTXLUHPHQWRIWKHFDVH
G DQREVHUYDWLRQPDGHE\DMXGJH

'\DUFK\
XQGHUWKHJRYHPPHQORI,QGLD$FWPHDQW
D GLYLVLRQRISRZHUVEHWZHHQWKHFHQWUDODQGSURYLQFLDOJRYHUQPHQW
E VHSDUDWLRQRIMXGLFLDU\IURPH[HFXWLYH
F GLYLVLRQRIH[HFXWLYHGHSDUWPHQWVXQGHUHOHFWHGPLQLVWHUVDQGWKHPHPEHUVRIWKH
JRYHPRU
VH[HFXWLYHFRXQFLO
G VHSDUDWLRQEHWZHHQOHJLVODWXUHDQGH[HFXWLYH

)ULQJHEHQHILWWD[LVDWD[
D SDLGE\DQHPSOR\HULQUHVSHFWRIWKHIULQJHEHQHILWVSURYLGHGRUGHHPHGWRKDYH
EHHQSURYLGHG E\ DQ HPSOR\HU WR KLV HPSOR\HH E SDLG E\ DQ HPSOR\HU IRU WKH
EHQHILWVZKLFKKHHQMR\V
F SDLGE\DSHUVRQIRUWKHEHQHILWVZKLFKKHJHWVIURPKLVHPSOR\HU
G SDLGE\DPHPEHURIVFKHGXOHGFDVWHVDQGVFKHGXOHGWULEHVIRUEHQHILWVWKH\UHFHLYH
IURPWKHJRYHPPHQW

:KLFKRIWKHIROORZLQJLVQRWWUXHDERXWDFULPLQDOSURFHHGLQJ"
D WKHFRXUWPD\DVNWRSD\DILQH
E WKHFRXUWPD\RUGHUWKHWUDQVIHURIWKHRZQHUVKLSRIWKHSURSHUW\
F WKHUHLVSURVHFXWLRQ
G WKHFRXUWPD\GLVFKDUJHDQDFFXVHG

,Q5DPYV6KD\DP5DPFDQQRWEHD
D SODLQWLII EDSSHOODQWVFGHIHQGDQWGSURVHFXWRU

&U3&VWDQGVIRU
ϱϴ

D &ULPLQDOSURFHHGLQJVFRGH E&ULPLQDOSURFHHGLQJVFRXUW
F&ULPHSUHYHQWLRQFRGH G&ULPLQDO3URFHGXUHFRGH

0HGLFDO6FLHQFHXVHGIRULQYHVWLJDWLQJFULPHVLVNQRZQDV
D &ULPLQDO0HGLFLQH E(SLVWHPRORJLFDO6FLHQFH
F)RUHQVLFVFLHQFH G2QWRORJLFDO6FLHQFH

$SXLVQHMXGJHRID+LJK&RXUWLV
D DMXGJHRWKHUWKDQD&KLHI-XVWLFHEWKH&KLHI-XVWLFH
FDWHPSRUDU\MXGJH GDUHWLUHGMXGJH

,QWUDYLUHVPHDQV
D ZLWKLQWKHSRZHUVERXWVLGHWKHSRZHUV
FZLWKLQWKHVFRSHRIIXQGDPHQWDOULJKWV GUHJXODU

;WKHVHUYDQWRI<WDNHVDKXQGUHGUXSHHQRWHIURP<
VSRFNHWDQGKLGHVLWXQGHUWKH
FDUSHWLQWKHKRXVHRI<;WHOOV=DQRWKHUVHUYDQWRI<DERXWWKHFXUUHQF\QRWHDQG
ERWKDJUHHWRVKDUHWKHPRQH\ZKHQWKHFXUUHQF\QRWHLVWDNHQE\;IURPWKHKLGLQJ
SODFH %HIRUH ; FRXOG UHFRYHU WKH QRWH LW ZDV IRXQG E\ < 'HFLGH LI DQ RIIHQFH ZDV
FRPPLWWHGDQGLIVRZKRFRPPLWWHGWKHRIIHQFH"
D 1RRIIHQFHZDVFRPPLWWHG E2QO\;FRPPLWWHGWKHRIIHQFH
F%RWK;DQG=FRPPLWWHGWKHRIIHQFHG2QO\=FRPPLWWHGWKHRIIHQFH

0RRWVLQODZVFKRROVDUH
D H[HUFLVHVRIODZWHDFKLQJ
E OHJDOSUREOHPVLQWKHIRUPRILPDJLQDU\FDVHVDUJXHGE\WZRRSSRVLQJVWXGHQWV
EHIRUH D EHQFK SUHWHQGLQJ WR EH D UHDO FRXUW F LPDJLQDU\ FODVV URRP ZKHUH D
VWXGHQWDFWVDVDWHDFKHUGDGHEDWHRQDOHJDOSUREOHP

6FKHGXOHG7ULEHVWDWXVLV
D UHVWULFWHGWR+LQGXV EUHOLJLRXVO\QHXWUDO
FUHVWULFWHGWR+LQGXVDQG&KULVWLDQV GUHVWULFWHGWR+LQGXVDQG0XVOLPV

:KLFKRIWKHIROORZLQJKDVQRWEHHQDZRPDQMXGJHRIWKH6XSUHPH&RXUWRI,QGLDWLOO
"
D -XVWLFH*\DQ6XGKD0LVKUD E-XVWLFH6XMDWD0DQRKDU
F-XVWLFH5XPD3DO G-XVWLFH)DWKLPD%HHYL
:KDWLVWKHPHDQLQJRIFKDWWHO"
D DQ\SURSHUW\ ELPPRYDEOHSURSHUW\
FPRYDEOHSURSHUW\ GFDWWOH

,QDFLYLOVXLWWKHSHUVRQZKRILOHVVXLWDQGWKHSHUVRQDJDLQVWZKRPWKHVXLWLVILOOHG
DUHFDOOHG
D DFFXVHGSURVHFXWRU EDFFXVHUGHIHQGDQW
FDSSHOODQWUHVSRQGHQW GSODLQWLIIGHIHQGDQW

,QDFULPLQDOFDVHDQDFFXVHGSHUVRQZKRLQFRQVLGHUDWLRQRIKLVQRQSURVHFXWLRQ
RIIHUVWRJLYHHYLGHQFHDJDLQVWRWKHUDFFXVHGLVFDOOHG
D DFFRPSOLFHEKRVWLOHZLWQHVVFDSSURYHUGKRVWLOHDFFRPSOLFH
7KH3UHVLGHQWRI,QGLDLVHOHFWHGE\DQHOHFWRUDOFROOHJHFRQVLVWLQJRI
ϱϵ

D DOOWKHPHPEHUVRIERWKWKH+RXVHVRI3DUOLDPHQWDQGDOOWKHPHPEHUVRIDOOWKH
/HJLVODWLYH$VVHPEOLHV
E DOOWKHHOHFWLYHPHPEHUVRIERWKWKH+RXVHVRI3DUOLDPHQWDQGDOOWKHPHPEHUVRI
DOOWKH/HJLVODWLYH$VVHPEOLHV
F DOOWKHPHPEHUVRIERWKWKH+RXVHVRI3DUOLDPHQWDQGDOOWKHHOHFWHGPHPEHUVRI
G DOO WKH HOHFWHG PHPEHUV RI ERWK WKH +RXVHV RI 3DUOLDPHQW DQG DOO WKH HOHFWHG
PHPEHUVRI

:KLFKRIWKHIROORZLQJLVQRWDIXQGDPHQWDOULJKW"
D IUHHGRPRIVSHHFKEULJKWWROLIH
FULJKWWRHTXDOLW\ GULJKWWRZRUN

,QWHUQDWLRQDO/DERXU2UJDQL]DWLRQKDVLWVKHDGTXDUWHUVDW
D 7KH+DJXHE*HQHYD F1HZ<RUN G/RQGRQ

7KH&KLOG0DUULDJH5HVWUDLQW$FWLVDSSOLFDEOHWR
D RQO\+LQGXV
E DOO,QGLDQVH[FHSW0XVOLPVDVWKHPLQLPXPDJHRIPDUULDJHDPRQJ0XVOLPJLUOV
LVSXEHUW\EHJLQQLQJRIPHQVWUXDWLRQLQ0XVOLPSHUVRQDOODZ
F DOOLUUHVSHFWLYHRIUHOLJLRQ
G DOOH[FHSW0XVOLP&KULVWLDQVDQG-HZV

;DVKRSNHHSHUOHDYHVDVHDOHG6NLORJUDPEDJRIDEUDQGHGZKHDWIORXUDWWKHGRRU
RI<ZLWKDQRWH\RXZLOOOLNHWKLVTXDOLW\ZKHDWIORXUDQGSD\5XSHHVIRUWKLVEDJ
ZLWKRXWEHLQJDVNHGWRGRVR<RQFRPLQJEDFNFROOHFWVWKHEDJIURPKLVGRRURSHQV
WKHVHDORIWKHEDJDQGXVHVDTXDUWHURINLORJUDPIRUPDNLQJFKDSDWWLVXQOHDYHQHG
EUHDG%XWQH[WGD\UHWXUQVWKHEDJ,VKHERXQGWRSD\IRUWKHEDJ"+HLV
D QRWERXQGWRSD\DVKHGLGQRWDVNWKHVKRSNHHSHUWRGHOLYHUWKHEDJ
E ERXQGWRSD\DVKHKDVRSHQHGWKHEDJ
F ERXQGWRSD\RQO\IRUWKHTXDQWLW\XVHG
G QHLWKHUERXQGWRSD\QRUUHWXUQWKHEDJ

:LWKLQWKHMXULVGLFWLRQRIZKLFK+LJK&RXUWGRHV/DNVKGZHHSIDOO
D %RPED\+LJK&RXUW E.HUDOD+LJK&RXUW
F0DGUDV+LJK&RXUW G'HOOWL+LJK&RXUW

:KLFKRIWKHIROORZLQJLVQRWWKHIXQFWLRQRIWKH,QWHUQDWLRQDO&RXUWRI-XVWLFH"
,W
D JLYHVDGYLVRU\RSLQLRQDWWKHUHTXHVWRIJHQHUDO$VVHPEO\
E JLYHVDGYLVRU\RSLQLRQDWWKHUHTXHVWRI6HFXULW\&RXQFLO
F LQWHUSUHWVWUHDWLHVZKHQFRQVLGHULQJOHJDOGLVSXWHVEURXJKWEHIRUHLWE\QDWLRQV
G GHFLGHVLQWHUQDWLRQDOFULPHV

%DQNQDWLRQDOL]DWLRQFDVHUHODWHVWRWKHQDWLRQDOL]DWLRQRI
D VRPHEDQNVE\WKHJRYHUQPHQWRI,QGLDDIWHUHFRQRPLFOLEHUDOLVDWLRQLQE
VRPHEDQNVXQGHUDODZGXULQJWKH3ULPH0LQLVWHUVKLSRI0UV,QGLUD*DQGKLF
DOOWKHSULYDWH,QGLDQ%DQNVGXULQJWKH3ULPH0LQLVWHUVKLSRI1DUDVLPKD5DRG
DOOWKHSULYDWH,QGLDQ%DQNVGXULQJWKH3ULPH0LQLVWHUVKLSRI0UV,QGLUD*DQGKL
ϲϬ

:KLFKRIWKHIROORZLQJLVQRWLQFOXGHGZLWKLQWKHPHDQLQJRILQWHOOHFWXDOSURSHUW\
D3DWHQWV E&RS\ULJKWV
F7UDGHPDUN G3URSHUO\RIDQLQWHOOHFWXDO

7KHPDLQDLPRIWKHFRPSHWLWLRQ$FWLVWRSURWHFWWKHLQWHUHVWVRI
DWKHPXOWLQDWLRQDOFRUSRUDWLRQ EWKH,QGLDQFRPSDQLHV
FWKHFRQVXPHUV GWKHPDUNHW

/RJLFDO5HDVRQLQJ

,QHDFKRIWKHHTXDWLRQVQXPEHUWRWZRZRUGVDUHSDLUHGZKLFKKDYHDFHUWDLQ
UHODWLRQ 6HOHFW D FRUUHFW RSWLRQ WR VXEVWLWXWH TXHVWLRQ PDUN VR DV WR PDNH D VLPLODU
UHODWLRQDOSDLUZLWKWKHZRUGJLYHQDIWHUGRXEOHFRORQ

&RQVWLWXHQW $VVHPEO\ &RQVWLWXWLRQ
3DUOLDPHQW"
D6WDWXWHE/HJLVODWLYHELOOV F6SHDNHU G3ULPH0LQLVWHU
5LJKWGXW\3RZHU"
D:URQJE:HDN F3RZHUOHVV G/LDELOLW\
(OHSKDQW&DOI7LJHU"
D3XSE7LJUHVV F&XE G%DE\7LJHU
3DWLHQW'RFWRU/LWLJDQW"
D$GYLVRUE+HOS F/HJDODLG G/DZ\HU
3URVHFXWRU$FFXVHGSODLQWLII"
D$SSHOODQWE'HIHQGDQW F3ODLQW G6XLW
/RN6DEKD0HHUD.XPDU5DM\D6DEKD"
D+DPHHG$QVDWLE1DMPD+HSWXOODK F

G$UXQ-DLWHO\
6XVKPD6ZDUDM

3UHVLGHQWRI,QGLD0HPEHURI3DUOLDPHQW5DM\D6DEKD
D E FG

,QGLD3DUOLDPHQWDU\6\VWHP86$"
ϲϭ

6WDWHPHQW &KLOGUHQ EHORZ WKH DJH RI VHYHQ VKRXOG QRW EH SURVHFXWHG IRU FULPHV
$VVXPSWLRQ,*HQHUDOO\FKLOGUHQEHORZVHYHQFDQQRWGLVWLQJXLVKEHWZHHQULJKWDQG
ZURQJ
$VVXPSWLRQ,,&KLOGUHQEHORZWKHDJHRIVHYHQDUHJHQHUDOO\PHQWDOO\XQVRXQG

6WDWHPHQW 7KHHPSOR\HU KDV D ULJKW WR UHMHFW WKH DSSOLFDWLRQ RI DQ\ FDQGLGDWH IRU
HPSOR\PHQW ZLWKRXW DVVLJQLQJ DQ\ UHDVRQ ZKLOH VKRUW OLVWLQJ FDQGLGDWHV IRU
LQWHUYLHZ
$VVXPSWLRQ,7KHHPSOR\HULVLPSDUWLDODQGEHOLHYHVLQWUDQVSDUHQF\LQHPSOR\PHQW
SUDFWLFHV
$VVXPSWLRQ,,7KHHPSOR\HUZDQWVWRFDOORQO\WKRVHFDQGLGDWHVIRULQWHUYLHZZKR
LQKLVRSLQLRQDUHHOLJLEOH
6WDWHPHQW 7KH JRYHUQPHQW KDV GHFLGHG WR UHGXFH FXVWRP GXW\ RQ FRPSXWHUV
$VVXPSWLRQ,7KHJRYHUQPHQWZDQWVWRPDNHFRPSXWHUDFFHVVLEOHWRODUJHUQXPEHU
RISHRSOH
$VVXPSWLRQ,,3ULFHVLQGRPHVWLFPDUNHWPD\JRXSLQQHDUIXWXUH

6WDWHPHQW <RX FDQ ZLQ RYHU QHZ IULHQGV E\ \RXU ZDUP VPLOH $VVXPSWLRQ , ,W LV
QHFHVVDU\>RZLQRYHUQHZIULHQGV
$VVXPSWLRQ,,,WLVDOZD\VEHWWHUWRVPLOHZDUPO\WRQHZSHUVRQV

6L[VWXGHQWV$%&'(DQG)DUHVLWWLQJ$DQG%DUHIURP0XPEDLUHVWDUHIURP
'HOKL'DQG)DUHWDOOEXWRWKHUVDUHVKRUW$&DQG'DUHJLUOVRWKHUVDUHER\V
:KLFKLVWKHWDOOJLUOIURP'HOKL"
D ) E' F( G&

3LVWKHEURWKHURI45LVWKHVLVWHURI46LVWKH6LVWHURI5+RZLV4UHODWRGWR6"
D EURWKHUEVLVWHUFEURWKHURUVLVWHU GVRQ

,QTXHVWLRQQXPEHUVWRWZRVHWVRIZRUGVKDYHFHUWDLQUHODWLRQ6HOHFWDZRUGWR
UHSODFHWKHTXHVWLRQPDUNVRDVWRPDNHDVLPLODUUHODWLRQDOSDLUZLWKWKHRWKHUZRUGLQ
WKHWKLUGVHW
&DW.LWWHQ*RDWNLG6KHHS"
D FROWEILOO\FODPEGZRRO
&DWDUDFWH\HMDXQGLFHOLYHUS\RUUKHD"
D EUHDWKEWRQJXHFHDUVGWHHWK
%OXHPRRQEOXHEODFNEODFN"
DVKHHSEJRDO FVN\ GVWDU

$SULQFLSOHSULQFLSOHVDQGDIDFWVLWXDWLRQDUHJLYHQLQTXHVWLRQQR'HFLGHRQO\RQ
WKHEDVLVRIWKHSULQFLSOHV
ϲϯ

3ULQFLSOHV
L 1HLJKERXUSULQFLSOH$SHUVRQLVOLDEOHLIKHKDUPVKLVQHLJKERXU$QHLJKERXULVRQH
ZKRVHDFWLRQDIIHFWVDQRWKHU
LL 2QHLVOLDEOHRQO\IRUFRQWUDFWXDOUHODWLRQV
)DFWV;PDQXIDFWXUHVDIRRGLWHPDQGVHOOVKLVIRRGLWHPWR<DZKROHVHOOHU<DSSRLQWV
= D UHWDLOHU WR UHWDLO WKHVH LWHPV = VHOOV WKH IRRG LWHP WR D FRQVXPHU ZKR DIWHU
HDWLQJWKHPIDOOVLOO;LVOLDEOHWRWKHFRQVXPHUEHFDXVH
D RIFRQWUDFWXDOUHODWLRQV ERIWKH)RRG$GXOWHUDWLRQ$FW
FWKHFRQVXPHULVWKHQHLJKERURI; GRIWKHFRQVXPHUSURWHFWLRQODZ
3ULQFLSOH
L )UHHGRPFRQVLVWVLQPDNLQJFKRLFHVRXWRIWZRRUPRUHDOWHUQDWLYHV
LL (YHU\RQHKDVIUHHGRPWRVSHDN

)DFWV
;VD\VKLVIUHHGRPWRVSHHFKLQFOXGHVIUHHGRPQRWWRVSHDN;
VDVVHUWLRQLV
D ZURQJ
E ULJKW
F ZURQJEHFDXVHWKHIUHHGRPWRVSHDNFDQQRWPHDQIUHHGRPQRWWRVSHDN
G ULJKWEHFDXVH;PD\RSWWRVSHDNRUQRWWRVSHDN

3ULQFLSOHV
L $PDVWHULVOLDEOHIRUWKHZURQJIXODFWVRIKLVVHUYDQW
LL $SHUVRQFDQEHFDOOHGDVHUYDQWRQO\LIWKHUHLVDUHODWLRQRIHPSOR\PHQW
DQGKHDFWVXQGHUWKHRUGHUDQGRQEHKDOIRIKLVPDVWHU
)DFWV
;EDQNODXQFKHGDVDYLQJVFKHPHIRUSRRUVHFWLRQVRIWKHVRFLHW\DQGWKHFXVWRPHU
FDQGHSRVLW5VSHUGD\<DQXQHPSOR\HG\RXWKFROOHFWHGPRQH\IURPVHYHUDO
FXVWRPHUVDQGRQEHKDOIRIWKHPGHSRVLWHGWKHPRQH\DWWKH%DQNHYHU\GD\7KH
EDQN JDYH WR < D VPDOO FRPPLVVLRQ $IWHU VRPHWLPH < GLVDSSHDUHG ZLWKRXW
GHSRVLWLQJWKHPRQH\JLYHQE\WKHFXVWRPHUV7KHFXVWRPHUVEULQJDVXLWDOOHJLQJ
WKDWWKH%DQNLVOLDEOH
'HFLGH
D WKH%DQNLVOLDEOHEHFDXVHLWSDLGFRPPLVVLRQWR<
E WKH%DQNLVOLDEOHEHFDXVH<ZDVWKHLUVHUYDQW
F WKH%DQNLVQRWOLDEOHEHFDXVH<ZDVQRWWKHLUVHUYDQW
G 1RRQHLVOLDEOH

3ULQFLSOHV
;SURSRXQGVWKHSULQFLSOHWKDWHYHU\RQHLQWKLVZRUOGDOZD\VVSHDNVOLHV
)DFWV
;ZDQWVWRNQRZZHDWKHUWKLVSULQFLSOHLVORJLFDOO\WUXHRUIDOVH
D ORJLFDOO\WKHSULQFLSOHPD\EHWUXH
E HYHU\RQH LQ WKH ZKROH RI WKLV ZRUOG GRHV QRW DOZD\V VSHDN OLHV F
ORJLFDOO\;LVDOVRVSHDNLQJOLHV
GHYHU\RQHLVEDVLFDOO\DQKRQHVWSHUVRQ

3ULQFLSOH
ϲϰ

:KRVRHYHU HQWHUV LQWR RU XSRQ WKH SURSHUW\ LQ WKH SRVVHVVLRQ RI DQRWKHU ZLWK
LQWHQWWRFRPPLWDQRIIHQFHRUWRLQWLPLGDWHRUDQQR\DQ\SHUVRQLQSRVVHVVLRQRI
WKHSURSHUW\DQGUHPDLQVWKHUHZLWKLQWHQWWKHUHE\WRLQWLPLGDWHRUDQQR\DQRWKHU
SHUVRQRUZLWKLQWHQWWRFRPPLWDQRIIHQFHLVJXLOW\RIFULPLQDOWUHVSDVV
)DFWV
7KHDFFXVHGHQWHUHGDWQLJKWLQWRDKRXVHWRFDUU\RQLQWLPDWHUHODWLRQVZLWKDQXQPDUULHG
PDMRUJLUORQKHULQYLWDWLRQDQGLQIRUPDWLRQWKDWKHUIDPLO\PHPEHUVDUHDEVHQW+RZHYHU
KHZDVFDXJKWE\KHUXQFOHEHIRUHKHFRXOGJHWDZD\,VWKHDFFXVHGJXLOW\RIFULPLQDO
WUHVSDVV"+HLV
D JXLOW\RIFULPLQDOWUHVSDVVDVKHDQQR\HGWKHXQFOH
E JXLOW\EHFDXVHKHHQWHUHGWKHKRXVHWRFRPPLWDFULPHDJDLQVWWKHJLUO
F JXLOW\EHFDXVHQRRQHVKRXOGHQWHULQWRWKHKRXVHRIDQRWKHUDWQLJKW
G QRWJXLOW\RIFULPLQDOWUHVSDVV

,QDFRGHHYHU\OHWWHURIWKHDOSKDEHWLVUHSODFHGE\VRPHRWKHUOHWWHU7KHFRGHIRU
WKHQDPH5DP.XPDULV
D 7HQ5RQHW E/HQ)LQDO F3HQ6LQHO G(OHSKDQW

)RXURIWKHJLYLQJILYHDUHDOLNHLQDFHUWDLQZD\DQGIRUPDJURXS:KLFKLVWKHRQHWKDW
GRHVQRWEHORQJWRWKDWJURXSLQTXHVWLRQVQR@"

,9 9
D , E9 F, G,,,

JRXUG UDGLVK VSLQDFK FXFXPEHUEHHWURRW
D UDGLVK EEHHWURRWF3RWDWRHVG6SLQDFK

3RLQWRXWWKHHQWU\ZKLFKGRHVQRWIRUPDFODVVZLWKWKHRWKHUHQWULHVLQTXHVWLRQVQXPEHU
WR

DKRXVH EPRUWJDJH FK\SRWKHFDWLRQGLPPRYDEOHSURSHUW\
D/DZ E&RXUW F0RUDOLW\G-XGJH

D)UHHGRPRIVSHHFK E5LJKWWRHTXDOLW\
F)UHHGRPRIUHOLJLRQG5LJKWWRPDNHFRQWUDFW

,Q4XHVWLRQWRDTXHVWLRQDQGWZRDUJXPHQWVDUHJLYHQ$UJXPHQWVLQUHODWLRQ
WRWKHTXHVWLRQDUHHLWKHUZHDNRUVWURQJ8VHWKLVNH\WRJLYH\RXUUHVSRQVHV
D$UJXPHQW,LVVWURQJ E$UJXPHQW,,LVVWURQJ
F%DWK,DQG,,DUH6WURQJ G%RWK,DQG,,DUHZHDN

4XHVWLRQ6KRXOGWKHUHEHFRPSOHWHEDQRQPDQXIDFWXUHRIOLUHFUDFNHUVLQ
,QGLD"$UJXPHQW,1R7KLVZLOOUHQGHUWKRXVDQGVRIZRUNHUVMREOHVV
$UJXPHQW,,<HVWKHILUHFUDFNHUPDQXIDFWXUHUVXVHFKLOGODERXU

4XHVWLRQ6KRXOGSULYDWHRSHUDWRUVEHDOORZHGWRRSHUDWHSDVVHQJHUWUDLQVHUYLFHLQ
,QGLD"
$UJXPHQW,1RSULYDWHRSHUDWRUVGRQRWDJUHHWRRSHUDWHRQQRQSURILWDEOHVHFWRUV
$UJXPHQW,,<HVLWZLOOLPSURYHWKHTXDOLW\RI,QGLDQ5DLOZD\6HUYLFH
ϲϱ

4XHVWLRQ 6KRXOG KH V\VWHP RI UHVHUYDWLRQ RI SRVWV IRU VFKHGXOHG FDVWHV EH
LQWURGXFHGLQSULYDWHVHFWRU"
$UJXPHQW,<HVWKLVZRXOGJLYHPRUHRSSRUWXQLW\RIGHYHORSPHQWWRWKHVHJURXSV
$UJXPHQW,,1RWKLVZRXOGHIIHFWPHULW

4XHVWLRQ:RXOGWKHSUREOHPRIROGSDUHQWVEHVROYHGLIFKLOGUHQDUHPDGHOHJDOO\
UHVSRQVLEOHWRWDNHFDUHRIWKHLUSDUHQWVLQROGDJH"
$UJXPHQW,<HVVXFKSUREOHPVFDQEHVROYHGRQO\WKURXJKODZ$UJXPHQW,,
<HVWKLVZLOOEULQJUHOLHIWRROGSDUHQWV

4XHVWLRQ6KRXOGULJKWWRSULPDU\HGXFDWLRQEHPDGHDIXQGDPHQWDOULJKW"
$UJXPHQW , :H VKRXOG ILUVW FRPSOHWH RWKHU GHYHORSPHQWDO SURMHFW HGXFDWLRQ RI
FKLOGUHQPD\ZDLO
$UJXPHQW ,, <HV ZLWKRXW SULPDU\ HGXFDWLRQ IRU DOO WKHUH FDQQRW EH LQFOXVLYH
GHYHORSPHQW

3UDPHVK LV KHDYLHU WKDQ -DLUDP EXW OLJKWHU WKDQ *XODE $QDQG LV KHDYLHU WKDQ
*XODE0RKDQLVOLJKWHUWKDQ-DYDP:KRDPRQJWKHPLVWKHKHDYLHVW"
D-DLUDP E$QDQG F*XODE G3UDPHVK

5DYLLVWKHEURWKHURI$PLW
VVRQ+RZLV$PLWUHODWHGWR5DYL"
D&RXVLQ E)DWKHU F6RQ G*UDQGIDWKHU

,I&$%/(LVFRGHG=&'$<WKHQ67$%/(ZLOOEHFRGHGDV
D73$'$< E73&'&< F73&'$< G73&<$<

,I&+$57(5LVFRGHG802(3<(WKHQ3$571(5ZLOOEHFRGHGDV
D$213&<(E$((3&<(F$2($&<(G$2(3&<(

(OHPHQWDU\0DWKHPDWLFV1XPHULFDO$ELOLW\

6HOHFWRQHRIWKHJLYHQQXPEHUVWRUHSODFHTXHVWLRQPDUNLQWKHVHULHVLQTXHVWLRQV
WR

"
D EF G

"
D E F G

"
D E F D

5DPERUURZV5XSHHVIURP*RYLQGDWDVLPSOHLQWHUHVWRISHUDQQXP:KDW
DPRXQWRIPRQH\VKRXOG5DPSD\WR*RYLQGDIWHUVL[PRQWKVWREHDEVROYHGRIWKH
GHEW"5XSHHV
D E F G

:KLFKRIWKHIROORZLQJLVDSULPHQXPEHU"
D E
F G
ϲϲ

7KHVTXDUHURRWRILV
D EF G

)LQGWKHIDFWRUVRI
D[[[ E[[[ F[[[ G[[[

)LQGWKHIDFWRUVRI
D[[[ E[[[ F[[[G[[[
:KLFKRIWKHIROORZLQJLVQRWDSULPHQXPEHU
D E F G

,IWKHQXPEHUVIURPWRZKLFKDUHGLYLVLEOHE\DUHDDDQJHGLQGHVFHQGLQJ
RUGHUZKLFKQXPEHUZLOOEHDWWKH
SODFHIURPWKHERWWRP
D E F G

$YHUDJH DJH RI WHQ SHUVRQV OHDUQLQJ \RJD LV \HDUV :KHQ WKH DJH RI WKHLU
LQVWUXFWRULVDGGHGWKHDYHUDJHDJHEHFRPHV\HDUV7KHDJHRIWKHLULQVWUXFWRU
LV"
D EF
DV*
)LQGRI
D E F G

6TXDUHURRWRILV
D E F G

:KDWLVWKHSODFHORFDWLRQYDOXHR&6LQ"V
D E F G
[LVHTXDOWR
DE F G

<WUDYHOVOVNLORPHWHUVGXH6RXWKWKHQVNLORPHW UVGXHZHVWWKHQNLORPHWHUV
GXHQRUWKWKHQNLORPHWHUVGXHVRXWKWKHQNLORPHWHUVGXH(DVW+RZIDULVKH
IURPWKHVWDUWLQJSRLQW"
DNLORPHWHUV ENLORPHWHUV FNLORPHWHUV GNLORPHWHUV

6HOHFWDSSURSULDWHQXPEHUVWRILOOLQWKHEODQNVLQWKHVHULHVJLYHQLQTXHVWLRQVQRDQG

D E F G

D EH D

:KLFKRIWKHIROORZLQJIUDFWLRQVKDVWKHKLJKHVWYDOXH
ϲϳ

D E F G

)RXUJDUGHQHUVZLWKIRXUJUDVVPRZHUVPRZVVTXDUHPHWHUVRIJURXQGLQIRXU
KRXUV+RZORQJZRXOGLWWDNHIRUHLJKWJDUGHQHUVZLWKHLJKWJUDVVPRZHUVWRPRZ
VTXDUHPHWHUVRIJURXQG"
DKRXUV EKRXUV FKRXUV GKRXUV

6HULHV$7HVW%RRNOHW1XPEHU

&RPPRQ/DZ$GPLVVLRQ7HVW&/$7
8QGHU*UDGXDWH&RXUVHV

7LPH30WR30KRXUV

5ROO1XPEHU««««««« 7RWDO0DUNV

,QVWUXFWLRQVWRWKH&DQGLGDWH8*

OLNHPLVSULQWIXGJLQJRISULQWLQJPLVVLQJSDJHVTXHVWLRQVRYDOVHWFDQGDVNIRU
LVVXHRIUHOHYDQWGXSOLFDWHV
1R GXSOLFDWH 4XHVWLRQ%RRNOHW RU 205$QVZHU 6KHHW VKDOO EHSURYLGHGH[FHSW LQ D
VLWXDWLRQXQGHU,QVWUXFWLRQDERYH
(QWHU \RXU GLJLW 5ROO 1XPEHU 7HVW %RRNOHW 1R 7HVW %RRNOHW 6HULHV LQ WKH VSDFH
SURYLGHGRQWKH205$QVZHU6KHHWZLWK%DOO3RLQW3HQRQO\DQGVKDGHWKHUHOHYDQW
RYDOVZLWK+%3HQFLO2QOY
7KHUH DUH REMHFWLYH TXHVWLRQV (DFK TXHVWLRQ FDUULHV RQH PDUN (DFK TXHVWLRQ
FRQVLVWVRIIRXUFKRLFHVRIDQVZHUV6HOHFWWKHPRVWDSSURSULDWHDQVZHUDQGVKDGHWKH
FRUUHVSRQGLQJRYDOLQWKH205VKHHWZLWK+%3HQFLO2QO\,IPRUHWKDQRQHRYDOLV
VKDGHGWKHTXHVWLRQVKDOOEHGHHPHGWREHZURQJ7KHUHLV12QHJDWLYHPDUNLQJIRU
ZURQJDQVZHUV
6SHFLILFLQVWUXFWLRQVDUHJLYHQDWWKHEHJLQQLQJRIHDFKTXHVWLRQRUVHWVRITXHVWLRQ
5HDGWKHPFDUHIXOO\EHIRUHDQVZHULQJ
7RWDOQXPEHURISDJHVLQWKH4XHVWLRQERRNOHWLVLQFOXGLQJWZREODQNSDJHV3DJH
QRDQGIRUURXJKZRUN
3RVVHVVLRQ RI DOO NLQGV RI HOHFWURQLF JDGJHW LQ WKH ([DP +DOO LV VWULFWO\ SURKLELWHG
3RVVHVVLRQDQGRUXVHRIDQ\XQIDLUPHDQVVKDOOGLVTXDOLI\WKHFDQGLGDWHDQGGHFLVLRQ
RIWKHFHQWUH6XSHULQWHQGHQWLQWKLVUHJDUGVKDOOEHILQDO

6HDO6LJQDWXUHRI&HQWUH6XSHULQWHQGHQW

7KLV ERRNOHW FRQWDLQV REMHFWLYH TXHVWLRQV (DFK TXHVWLRQ FDUULHV RQH PDUN (YHU\
TXHVWLRQFRQWDLQVIRXUFKRLFHVRIDQVZHUV6HOHFWWKHPRVWDSSURSULDWHDQVZHUDQGVKDGH
WKHFRUUHVSRQGLQJRYDOLQWKH VKHHW

(1*/,6+&2035(+(16,21
ϲϴ

7KH TXHVWLRQV LQ WKLV VHFWLRQ DUH EDVHG RQ D VLQJOH SDVVDJH 7KH TXHVWLRQV DUH WR EH
DQVZHUHGRQWKHEDVLVRIZKDWLVVWDWHGRULPSOLHGLQWKHSDVVDJH
3OHDVHQRWHWKDWIRUVRPHRIWKHTXHVWLRQVPRUHWKDQRQHRIWKHFKRLFHVFRXOGFRQFHLYDEO\
DQVZHUWKHTXHVWLRQ+RZHYHU\RXDUHWRFKRRVHWKHEHVWDQVZHUWKDWLVWKHUHVSRQVH
WKDWPRVWDFFXUDWHO\DQGFRPSOHWHO\DQVZHUVWKHTXHVWLRQ
3DVVDJHIRU4XHVWLRQVWR
,QD%RPED\HFRQRPLVWQDPHG$'6KURIIEHJDQD)RUXPRI)UHH(QWHUSULVHZKRVH
LGHDV RQ HFRQRPLF GHYHORSPHQW ZHUH VRPHZKDW DW RGGV ZLWK WKRVH WKHQ LQIOXHQWLDOO\
DUWLFXODWHGE\WKH3ODQQLQJ&RPPLVVLRQRIWKH*RYHUQPHQWRI,QGLD6KURIIFRPSODLQHG
DJDLQVW WKH
LQGLIIHUHQFH LI QRW GLVFRXUDJHPHQW
ZLWK ZKLFK WKH VWDWH WUHDWHG
HQWUHSUHQHXUV
$WWKHVDPHWLPHDV6KURIIEXWLQGHSHQGHQWO\RIKLPDMRXUQDOLVWQDPHG3KLOLS
6SUDWWZDVZULWLQJDVHULHVRIHVVD\VLQIDYRXURIIUHHHQWHUSULVH6SUDWWZDVD&DPEULGJH
FRPPXQLVWZKRZDVVHQWE\WKHSDUW\LQVWRIRPHQWUHYROXWLRQLQWKHVXEFRQWLQHQW
'HWHFWHGLQWKHDFWKHVSHQWPDQ\\HDUVLQDQ,QGLDQMDLO7KHERRNVKHUHDGLQWKHSULVRQ
DQGKLVPDUULDJHWRDQ,QGLDQZRPDQDIWHUZDUGVLQVSLUHGDVWHDG\PRYHULJKWZDUGV%\
WKHVKHZDVHGLWLQJDSUR$PHULFDQZHHNO\IURP%DQJDORUHFDOOHG - 7KHUH
KH LQYHLJKHG DJDLQVW WKH HFRQRPLF SROLFLHV RI WKH JRYHUQPHQW RI ,QGLD 7KHVH KH VDLG
WUHDWHGWKHHQWUHSUHQHXUCDVDFULPLQDOZKRKDVGDUHGWRXVHKLVEUDLQVLQGHSHQGHQWO\RI
WKH VWDWH WR FUHDWH ZHDOWK DQG JLYH HPSOR\PHQW
7KH VWDWH
V FKLHI SODQQHU 3&
0DKDODQRELVKDGVXUURXQGHGKLPVHOIZLWK:HVWHUQOHIWLVWVDQG6RYLHWDFDGHPLFLDQVZKR
UHLQIRUFHGKLVEHOLHILQ
CULJLGFRQWUROE\WKHJRYHUQPHQWRYHUDOODFWLYLWLHV
7KHUHVXOWVDLG6SUDWWZRXOGEHCWKH
VPRWKHULQJRIIUHHHQWHUSULVHDIDPLQHRIFRQVXPHUJRRGVDQGWKHW\LQJGRZQRIPLOOLRQV
RIZRUNHUVWRVRXOGHDGHQLQJWHFKQLTXHV

7KHYRLFHVRIPHQOLNH6SUDWWDQG6KURIIZHUHGURZQHGLQWKHFKRUXVRISRSXODUVXSSRUW
IRUDPRGHORIKHDY\LQGXVWULDOL]DWLRQIXQGHGDQGGLUHFWHGE\WKHJRYHUQPHQWV7KHV
ZHUHFHUWDLQO\QRWSURSLWLRXVWLPHVIRUIUHHPDUNHWHUVLQ,QGLD%XWIURPWLPHWRWLPHWKHLU
LGHDVZHUHUHYLYHG$IWHUWKHUXSHHZDVGHYDOXHGLQWKHUHZHUHVRPHPRYHVWRZDUGV
IUHHLQJWKHWUDGHUHJLPHDQGKRSHVWKDWWKHOLFHQVLQJV\VWHPZRXOGDOVREHOLEHUDOL]HG
+RZHYHUDIWHU,QGLUD*DQGKLVSOLWWKH&RQJUHVV3DUW\LQKHUJRYHUQPHQWWRRNLWV
COHIWWXUQ
QDWLRQDOL]LQJDIUHVKUDQJHRILQGXVWULHVDQGUHWXUQLQJWRHFRQRPLFDXWDUN\

:KLFKRIWKHIROORZLQJVWDWHPHQWVFDQPRVWUHDVRQDEO\EHLQIHUUHGIURPWKHLQIRUPDWLRQ
DYDLODEOHLQWKHSDVVDJH
D 3&0DKDODQRELVEHOLHYHGLQHPSRZHULQJSULYDWHHQWUHSUHQHXUVDQGSURPRWLQJ
IUHHPDUNHW
E 3KLOOLS6SUDWWSUHIHUUHGSODQVWKDWZRXOGFUHDWHHFRQRPLFFRQGLWLRQVIDYRXUDEOH
IRUDIRUZDUGPDUFKE\WKHSULYDWHHQWHUSULVH
F 5HVWULFWLRQVRQIUHHPDUNHWVHQULFKHGODUJH,QGLDQFRPSDQLHV
G 3KLOLS6SUDWWRSSRVHGWKHGHYDOXDWLRQRIUXSHHLQ

:KLFKRIWKHIROORZLQJVWDWHPHQWVLVOHDVWOLNHO\WREHLQIHUUHGIURPWKHSDVVDJH
D $FFHSWDQFHRI$'6KURII
VSODQVLQWKHRIILFLDOFLUFOHVVPRWKHUHGIUHHHQWHUSULVH
LQ,QGLD
E 7KH YLHZV RI WKH )RUXP RI )UHH (QWHUSULVH UDQ DJDLQVW WKH FRQFHSWLRQ RI
GHYHORSPHQWWKHQSUHYDOHQWDPRQJWKHSROLF\PDNHUV
ϲϵ

F $' 6KURII EHOLHYHG WKDW VWDWH VKRXOG DFWLYHO\ VXSSRUW WKH SULYDWH VHFWRU G
3KLOLS6SU[WWKDGEHHQHGXFDWHGLQ&DPEULGJH

6HOHFWWKHVWDWHPHQWWKDWEHVWFDSWXUHVWKHFHQWUDOSXUSRVHRIWKLVSDVVDJH
D +LJKOLJKW WKDW HYHQ WKRXJK WKHUH ZHUH DGYRFDWHV IRU IUHHPDUNHW DQG SULYDWH
HQWHUSULVH LQ WKH HDUO\ \HDUV RI LQGHSHQGHQW ,QGLD WKH\ ZHUH FURZGHG RXW E\
RWKHUVZKRVXSSRUWHGDGRPLQDQWUROHIRUVWDWHRYHUSULYDWHHQWHUSULVH
E ([SODLQWKHSROLWLFVEHKLQG,QGLUD*DQGKL
VGHFLVLRQWRQDWLRQDOLVHWKHEDQNV
F 'HPRQVWUDWHZLWKWKHKHOSRIVWDWLVWLFVKRZWKHSUHIHUHQFHRISROLF\PDNHUVIRU
6RYLHWVW\OHHFRQRPLFSROLFLHVSUHYHQWHG,QGLD
VHFRQRPLFJURZWK
G (VWDEOLVK WKDW GHYDOXDWLRQ RI UXSHH LQ ZDV YLQGLFDWHG E\ VXEVHTXHQW
H[SHULHQFH
3KLOLS6SUDWWFDPHWR,QGLDEHFDXVHKHD)HOOLQORYHZLWKDQ,QGLDQZRPHQ
E :DQWHG>RSURWHVWDJDLQVWWKHHFRQRPLFSROLFLHVRIWKH,QGLDQJRYHUQPHQW
F :DVRIIHUHGWKHHGLWRUVKLSRI -
G +DGEHHQLQVWUXFWHGWRZRUNWRZDUGVWKHJRDORILQFLWLQJDUHYROXWLRQLQ,QGLD
7KH DXWKRU DYHUV WKDW $' 6KURIIV LGHDV ZHUH VRPHZKDW DW RGGV ZLWK WKH YLHZV RI
3ODQQLQJ&RPPLVVLRQEHFDXVH
D $' 6KURII ZDV LQ IDYRXU RI ULJLG JRYHUQPHQWDO FRQWURO RYHU DOO HFRQRPLF
DFWLYLWLHV
E 6KURIIKDGRSSRVHGJRYHUQPHQW·VGHFLVLRQWRGHYDOXH,QGLDQUXSHH
F 7KHKRVWLOLW\RIWKHJRYHUQPHQWWRSULYDWHHQWUHSUHQHXUVZDVFRPSODLQHGDJDLQVW
E\$'6KURII
G 6KURII KDG EHHQ FULWLFDO RI WKH LQIOXHQFH RI 6RYLHW DFDGHPLFLDQV RYHU ,QGLD
V
HFRQRPLFSROLF\
7KHLGHRORJLFDOVKLIWRI3KLOLS6SUDWWWRWKHULJKWZDVFDXVHGE\
D 7KHGHPLVHRIWKH6RYLHW8QLRQ
E 7KHVWDUWRIWKHZHHNO\FDOOHG -
F 7KHERRNVWKDWKHHQFRXQWHUHGLQWKHSULVRQ
G 7KHGLVVROXWLRQRIKLVILUVWPDUULDJHWRKLVFROOHJHIULHQG
6HOHFWWKHVWDWHPHQWWKDWFRXOGEHPRVWSODXVLEO\LQIHUUHGIURPWKLVSDVVDJH
D 3KLOLS6SUDWWDQG$'6KURIIZHUHPHPEHUVRIWKH)RUXPIRU)UHH(QWHUSULVH
E 7KHILUVWWZR)LYH<HDU3ODQVHPSKDVLVHGRQWKHLPSRUWDQFHRISULYDWHHQWHUSULVH
DVWKHVSHDUKHDGRIHFRQRPLFJURZWK
F 3&0DKDODQRELVKDGPRRWHGWKHH[SXOVLRQRIIRUHLJQILUPVOLNH&RFD&RODDQG
,%0IURP,QGLD
G 7KHKRSHVWKDWWKHOLFHQVLQJUHJLPHZRXOGEHOLEHUDOL]HGDIWHUWKHGHYDOXDWLRQRI
,QGLDQUXSHHZHUHEHOLHGLQWKHDIWHUPDWKRIWKHVSOLWLQWKH&RQJUHVV3DUW\
7KHDXWKRUDOOXGHVWRQDWLRQDOL]DWLRQRILQGXVWULHVLQLQRUGHUWR
D 6KRZ WKH FRQWUDGLFWLRQV EHWZHHQ $' 6KURII
V HFRQRPLF YLHZV DQG WKH RIILFLDO
HFRQRPLFSROLFLHVRIWKH*RYHUQPHQWRI,QGLD
E ([HPSOLI\WKHVKLIWRIWKH,QGLUD*DQGKLOHGJRYHUQPHQWWRWKHCOHIW

F 'HPRQVWUDWHWKHLGHRORJLFDOFKDQJHVLQWKHZRUOGYLHZRI3KLOLS6SUDWW
G +LJKOLJKW WKH QHJDWLYH SROLWLFDO UHSHUFXVVLRQV RI WKH GHFLVLRQ WR GHYDOXH WKH
,QGLDQFXUUHQF\
1HLWKHU3KLOLS6SUDWWQRU$'6KURIIBBBBBBBDEOHWRFRQYLQFH0DKDODQRELV6HOHFWWKH
PRVW DSSURSULDWH SKUDVH RXW RI WKH IRXU RSWLRQV IRU ILOOLQJ WKH EODQN VSDFH LQ WKH
DIRUHVDLGVHQWHQFH
D:HUH E$UH F:DV G,V
7KHZRUGCLQYHLJKHG
LQWKLVSDVVDJHPHDQV
ϳϬ

D 3UDLVHG E5HFLWHG F3URFODLPHG G5HPRQVWUDWHG


,Q 0DQQ -RVHSK
V GHEXW QRYHO 6HULRXV WKH SURWDJRQLVW $\\DQ 0DQL LV D 8
VFKHPLQJ 'DOLW%XGGKLVW ZKR DOPRVW JHWV DZD\ ZLWK SDVVLQJ RII KLV SDUWLDOO\ GHDI VRQ
$GL DV D SURGLJ\ D JHQLXV ZKR FDQ UHFLWH WKH ILUVW SULPH QXPEHUV 7KH JDUE RI
VDWLUHZKHUHDOPRVWHYHU\FKDUDFWHUFXWVDVRUU\ILJXUHJLYHVWKHDXWKRUWKHOLFHQFHWRRIIHU
RQH
RI WKH PRVW EOHDN DQG SHVVLPLVWLF SRUWUD\DOV RI XUEDQ 'DOLWV 'HVSLWH KLV VDYDJH
SRUWUD\DORI'DOLWDQGIHPDOHFKDUDFWHUVRUSHUKDSVEHFDXVHRILW"6HULRXV KDVZRQ
FULWLFDODSSUHFLDWLRQIURQWDFURVVVHFWLRQRIUHDGHUVDQGFULWLFV

$WDWLPHZKHQDIRUPLGDEOHERG\RI'DOLWOLWHUDWXUHZULWLQJE\'DOLWVDERXW'DOLWOLYHV
KDVFUHDWHGDGLVWLQFWVSDFHIRULWVHOIKRZDQGZK\LVLWWKDWDQRYHOVXFKDV6HULRXV
ZLWKLWVJOHHIXOO\VNHZHGSRUWUD\DORIDQDQJU\'DOLWPDQPDQDJHVWRZLQVXFKDFFRODGHV"
,Q $PHULFDQ OLWHUDWXUHDQG SDUWLFXODUO\ LQ WKH FDVH RI $IULFDQ$PHULFDQ DXWKRUV DQG
FKDUDFWHUVWKHVH LVVXHV RI UHSUHVHQWDWLRQ KDYH EHHQ GHEDWHG IRU GHFDGHV %XW LQ ,QGLD
WKHVXVWDLQHGUHIXVDOWRDGGUHVVLVVXHVUHODWHGWRFDVWHLQHYHU\GD\OLIHDQGWKHFRQWLQXHG
DQGXQTXHVWLRQHGSUHGRPLQDQFHRID%UDKPLQLFDOVWUDQJOHKROGRYHUFXOWXUDOSURGXFWLRQ
KDYHOHGXVWRDSODFHZKHUHQRQ'DOLWSRUWUD\DORI'DOLWVLQOLWHUDWXUHFLQHPDDQGDUW
UHPDLQVWKHQRUP

7KHMRXUQH\RIPRGHP'DOLWOLWHUDWXUHKDVEHHQDGLIILFXOWRQH%XWHYHQWKRXJKLWKDVQRW
QHFHVVDULO\HQMR\HGWKHVXSSRUWRIQXPEHUVZHPXVWHQJDJHZLWKZKDW'DOLWVDUHZULWLQJ
QRWVLPSO\IRUUHDVRQVRIDXWKHQWLFLW\RUDVDFRQFHVVLRQWRLGHQWLW\SROLWLFVEXWVLPSO\
EHFDXVHRIWKHDHVWKHWLFYDOXHRIWKLVERG\RIZULWLQJDQGIRUWKHLQVLJKWVLWRIIHUVLQWRWKH
KXPDQFRQGLWLRQ,QDVRFLHW\WKDWLVVWLOOODUJHO\XQZLOOLQJWRUHFRJQLVH'DOLWVDVHTXDO
ULJKWVEHDULQJ KXPDQEHLQJV LQD VRFLHW\ WKDW LV LQKHUHQWO\ LQGLIIHUHQW WR WKHHYHU\GD\
YLROHQFH DJDLQVW 'DOLWV LQ D VRFLHW\ XQZLOOLQJ WR VKDUH VRFLDO DQG FXOWXUDO UHVRXUFHV
HTXLWDEO\ZLWK'DOLWVXQOHVVPDQGDWHGE\ODZDVVHHQLQWKHDQWLUHVHUYDWLRQGLVFRXUVH
'DOLW OLWHUDWXUH KDV WKH SRWHQWLDO WR KXPDQLVH QRQ'DOLWV DQG VHQVLWLVH WKHP WR D ZRUOG
LQWRZKLFKWKH\KDYHQRLQVLJKW%XWEHIRUHZHFDQXQGHUVWDQGZKDW'DOLWOLWHUDWXUHLV
VHHNLQJWRDFFRPSOLVKZHQHHGILUVWWRFRPHWRWHUPVZLWKWKHVWUDQJOHKROGRIQRQ'DOLW
UHSUHVHQWDWLRQVRI'DOLWV

5RKLQWRQ0LDU\
V$./ "SXEOLVKHG\HDUVDJRFKURQLFOHVWKHWUDYDLOVRIWZR
'DOLWFKDUDFWHUVXQFOH,VKYDUDQGQHSKHZ2PSUDNDVKZKRPLJUDWHWR%RPED\DQG\HW
FDQQRWHVFDSHEUXWDOLW\:KLOHWKHSUHVHQWRIWKHQRYHOLVVHWDWWKHWLPHRIWKH(PHUJHQF\
,VKYDU
VIDWKHU'XNK\EHORQJVWRWKHHUDRIWKHDQWLFRORQLDOQDWLRQDOLVWPRYHPHQW'XULQJ
RQH RI 'XNKL
V YLVLWV WR WKH WRZQ KH FKDQFHV XSRQ D PHHWLQJ RI WKH ,QGLDQ 1DWLRQDO
&RQJUHVV ZKHUH VSHDNHUV VSUHDG WKH 0DKDWPD
V PHVVDJH UHJDUGLQJ WKH IUHHGRP
VWUXJJOHWKHVWUXJJOHIRUMXVWLFHDQGZLSLQJRXWWKHGLVHDVHRIXQWRXFKDELOLW\UDYDJLQJ
XVIRUFHQWXULHVGHQ\LQJGLJQLW\WRRXUIHOORZKXPDQEHLQJV

1HLWKHULQWKHVZKHUHWKHQRYHO
VSDVWLVVHWQRULQWKH(PHUJHQF\SHULRGRIWKH
VZKHQWKHPLQGVDQGERGLHV,VKYDUDQG2PSUDNDVKDUHVDYDJHGE\WKHVWDWHGRZH
ILQGDQ\PHQWLRQRIDILJXUHOLNH%5$PEHGNDURURI'DOLWPRYHPHQWV,QKLVCQDWLRQDOLVW

XQGHUVWDQGLQJRIPRGHP,QGLDQKLVWRU\0LVWU\VHHPVWRKDYHQRWYHHUHGWRRIDUIURPWKH
URDG FKDUWHG E\ SUHGHFHVVRUV OLNH 0XON 5DM $QDQG DQG 3UHPFKDQG 6L[W\ \HDUV DIWHU
3UHPFKDQG 0LVWU\
V OLWHUDU\ LPDJLQDWLRQ VHHPV VWXFN LQ WKH HPSDWK\UHDOLVP PRGH
WUDSSLQJ'DOLWVLQDEMHFWLRQ0LVWU\KDSSLO\FRQWLQXHVWKHEURDGVWHUHRW\SHRIWKH'DOLWDV
DSDVVLYHVXIIHUHUZLWKRXWFRQVFLRXVQHVVRIFDVWHSROLWLFV
ϳϭ

:KLFKRIWKHIROORZLQJLVWKHFORVHVWGHVFULSWLRQRIWKHFHQWUDODUJXPHQWRIWKLVSDVVDJH

D 0DQX-RVHSK
VQRYHOSUHVHQWVDVFDWKLQJSRUWUD\DORI'DOLWV
E &RQWHPSRUDU\ $PHULFDQ OLWHUDWXUH LV YHU\ FDXWLRXV RQ SROLWLFDOO\ FRUUHFW
UHSUHVHQWDWLRQRIPLQRULWLHV
F 7KHODVWWZRGHFDGHVKDYHZLWQHVVHGWKHULVHRIDYHU\YLEUDQW'DOLWOLWHUDWXUHG
3RUWUD\DORI'DOLWVE\QRQ'DOLWVPHUHO\DVSDVVLYHYLFWLPVKDVEHHQWKHGRPLQDQW
QRUPLQ,QGLDQOLWHUDWXUHFLQHPDDQGDQ
$FFRUGLQJWRWKLVSDVVDJH3UHPFKDQGDQG0XON5DM$QDQG
D 3UHVHQWHGDVWHUHRW\SHGYHUVLRQRI'DOLWFKDUDFWHUVLQWKHLUZULWLQJV
E ([FHOOHGLQZULWLQJVDWLUHVRQVRFLDOLQHTXDOLW\
F :HUHSROLWLFDOO\RSSRVHGWRWKHYLHZVRI%5$PEHGNDU
G :HUHFORVHO\LQYROYHGZLWKWKHOHDGHUVKLSRIWKHQDWLRQDOLVWPRYHPHQW
7KHZULWHUUHIHUVWRWKH
DQWLUHVHUYDWLRQGLVFRXUVH
LQRUGHUWRDUJXHWKDW
D 'DOLWOLWHUDWXUHKDVKDGDYHU\GLIFXOWMRXPH\VLQFHLWVRULJLQV
E 0DQX-RVHSKLVYLVFHUDOO\RSSRVHGWR'DOLWV
F 3HUVRQVEHORQJLQJWRWKHXSSHUFDVWHVDUHLQKHUHQWO\LQGLIIHUHQWWRURXWLQHYLROHQFH
DJDLQVW'DOLWV
G ,QGLDQVRFLHW\LVQRW\HWUHDG\WRHTXLWDEO\VKDUHRQLWVRZQVRFLDOFXOWXUDODQG
SROLWLFDOVSDFHZLWK'DOLWV
:KLFKRIWKHIROORZLQJVWDWHPHQWVLVOHDVWOLNHO\WREHLQIHUUHGIURPWKLVSDVVDJH
D 7KH DXWKRU RI # KDV XVHG WKH OLWHUDU\ GHYLFH RI VDWLUH WR SUHVHQW DQ
XQIODWWHULQJSLFWXUHRIZRPHQFKDUDFWHUV
E ,VVXHVRIUHSUHVHQWDWLRQRIPLQRULWLHVKDYHEHHQGHEDWHGH[WHQVLYHO\LQ$PHULFDQ
OLWHUDWXUH
F 7KHZULWHURIWKLVSDVVDJHEHOLHYHVWKDWHQJDJHPHQWZLWK'DOLWVLVQHFHVVDU\RQO\
EHFDXVHVXFKHQJDJHPHQWDIILUPVWKHLPSRUWDQFHRILGHQWLW\SROLWLFV
G 7KHZULWHUEHOLHYHVWKDW5RKLQWRQ0LVWU\SUHVHQWHGDVWHUHRW\SLFDOUHSUHVHQWDWLRQ
RI'DOLWVFKDUDFWHULQKLVERRNO$FFRUGLQJWRWKHLQIRUPDWLRQDYDLODEOHLQWKH
SDVVDJHWKHZULWHUDWWULEXWHVWKH
SUHYDOHQFHRIUHSUHVHQWDWLRQRI'DOLWVE\QRQ
'DOLWVLQOLWHUDWXUHDUWDQGPHGLDWR
D 7KHQDWLRQDOLVWXQGHUVWDQGLQJRI,QGLDQKLVWRU\
E 0DUJLQDOLVDWLRQRI%5$PEHGNDUIURPQDWLRQDOLVWPRYHPHQW
F 7KHDQWLUHVHUYDWLRQGLVFRXUVH
G %UDKPLQLFDOFRQWURORYHUFXOWXUDOSURGXFWLRQ
:KLFKRIWKHIROORZLQJLVQRWDPRQJWKHUHDVRQVVXJJHVWHGE\WKHZULWHUIRUHQJDJLQJ
ZLWK'DOLWZULWLQJ
D 'DOLWOLWHUDWXUHKDVWKHSRWHQWLDOWRVHQVLWL]HQRQ'DOLWVDERXWWKHH[SHULHQFHV
RIWKHIRUPHU
E 'DOLWZULWLQJLVPRUHDXWKHQWLFWKDQUHSUHVHQWDWLRQRI'DOLWVE\QRQ'DOLWV
F 'DOLWOLWHUDWXUHGRHVQRWKDYHWKHVXSSRUWRIQXPEHUVG7KHDHVWKHWLFYDOXHRI
'DOLWZULWLQJ

:KLFKRIWKHIROORZLQJVWDWHPHQWFDQQRWEHLQIHUUHGIURPWKHSDVVDJH
D 8SSHUFDVWHVKDYHGRPLQDWHGWKHLQVWUXPHQWVRIFXOWXUDOSURGXFWLRQLQ,QGLDQ
VRFLHW\
E ,QGLDQVRFLHW\LVXQZLOOLQJWRUHFRJQLVH'DOLWVDVHTXDOULJKWVEHDULQJKXPDQ
EHLQJV
ϳϮ

F 'DOLWZULWHUVKDYHFDUYHGRXWDVSDFHIRUZULWLQJVRQ'DOLWH[SHULHQFHDQGZRUOG
YLHZ
G 7KH MXGLFLDU\ LQ ,QGLD LQ LWV RSSRVLWLRQ WR UHVHUYDWLRQ KDV EHWUD\HG LWV
XQZLOOLQJQHVVWRDFNQRZOHGJH'DOLWVDVHTXDOEHDUHURIULJKWV
7KHZULWHURIWKLVSDVVDJHLVFULWLFDORI5RKLQWRQ0LVWU\
V$./ "IRUWKHUHDVRQ
WKDW
D ,WLVDQH[DPSOHRIDERRNRQ'DOLWFKDUDFWHUVE\D1RQ'DOLW
E 7KHERRNVXJJHVWVWKDW'DOLWVDUHQRWKLQJPRUHWKDQSDVVLYHVXIIHUHUVZLWKRXW
DQ\DJHQF\
F 7KHERRNLJQRUHVWKHHYHU\GD\YLROHQFHWKDW'DOLWVKDYHWRFRQIURQWZLWKG,W
EDUHVWKHSDVVLYHOLWHUDU\VW\OHRIWKHDXWKRU5RKLQWRQ0LVWU\
:KLFK RI WKH IROORZLQJ ZRUGV ZRXOG EH WKH EHVW VXEVWLWXWH IRU WKH ZRUG
VO\
LQ WKLV
SDVVDJHD%ULJKW
E ZLVH
F GHYLRXV
G GLP
,W LV QRW DV LI 'DOLW PRYHPHQWV BBBBBBQRW DFWLYHGXULQJ WKHSHULRGV WKDW IRUP$.
/ "0EDFNGURS6HOHFWWKHPRVWDSSURSULDWHFKRLFHWRILOOLQWKHEODQNLQWKHDERYH
VHQWHQFH
D LV EZDV FZHUH GDUH


,QUHFHQWZHHNVWKHZULWHUV:LOOLDP'DOU\PSOHDQG3DWULFN)UHQFKDPRQJRWKHUVKDYH
FRPHEHIRUHDIXVLOODGHRIFULWLFLVPLQ,QGLDPXFKRILWTXHVWLRQLQJQRWWKHLUIDFWVQRW
WKHLULQWHUSUHWDWLRQVEXWWKHLUIRUHLJQQHVV

:KRJHWVWRZULWHDERXW,QGLD"7KH:DOO6WUHHW-RXUQDODVNHGRQ:HGQHVGD\LQLWVRZQ
UHSRUWRQWKLV,QGLDQOLWHUDU\IHXGLQJ,WLVDFRPSOLFDWHGTXHVWLRQQRWOHDVWEHFDXVHWR
GHFLGHZKRJHWVWRZULWHDERXW,QGLD\RXZRXOGQHHGWRGHFLGHZKRJHWVWRGHFLGHZKR
JHWVWRZULWHDERXW,QGLD5DWKHUWKDQFRQMHFWXULQJVRPH&RPPLWWHHIRUWKH'HFLGLQJRI
WKH'HFLGLQJRI:KR*HWVWR:ULWHDERXW,QGLDLWPLJKWEHHDVLHUWROHWZULWHUVZULWHZKDW
WKH\SOHDVHDQGUHDGHUVUHDGZKDWWKH\ZLVK

7KHDFFXVDWLRQVSRXULQJIRUWKIURPDVHFWLRQRIWKH,QGLDQFRPPHQWDULDWDUHYDULHG6RPH
FULWLFLVPLVRIDJHQXLQHOLWHUDU\QDWXUHIDLUJDPHFXVWRPDU\H[SHFWHG%XWODWHO\DJRRG
DPRXQWRIWKHUHSURDFKLQJKDVEHHQDERXWLGHQWLW\

,QWKHFDVHRI0U'DOU\PSOHD%ULWRQZKROLYHVLQ1HZ'HOKLLWLVLQWKHFULWLFV
YLHZ
WKDWKLVZULWLQJLVDQDFWRIUHFRORQL]DWLRQ,QWKHFDVHRI0U)UHQFKLWLVWKDWKHEHORQJV
WR D JURXS RI IRUHLJQ ZULWHUV ZKR XVH EXVLQHVVFODVV ORXQJHV DQG VHH VRPH PHULW LQ
FDSLWDOLVPDQGWKHUHIRUHGRQRWNQRZWKHUHDO,QGLDZKLFKRQO\WKHFRPPHQWDULDWPHPEHU
LQTXHVWLRQGRHV

:KDW LV PRVW LQWHUHVWLQJ DERXW WKHVH DSSUDLVDOV LV WKDW WKHLU HVVHQWLDO QDWXUH PDNHV
UHDGLQJWKHERRNVXSHUIOXRXVDVRQHRIP\,QGLDQUHYLHZHUVRSHQO\DGPLWWHG+LVUHYLHZ
ZDVQRWDERXWWKHERRNEXWDERXWKLVUHIXVDOWRUHDGWKHERRN7KHERRNLVQRWQHFHVVDU\
LQWKHVHFDVHVIRUWKHDUJXPHQWLVDERXWZKRFDQZULWHDERXW,QGLDQRWZKDWKDVEHHQ
ZULWWHQ
ϳϯ

)RUFULWLFVRIWKLVSHUVXDVLRQ,QGLDVXUHO\VHHPVDORQHO\ODQG$FRXQWU\ZLWKDPLOOHQQLDO
KLVWRUYRI+LQGXV&KULVWLDQV-HZV0XVOLPVDQG%XGGKLVWVOLYLQJSHDFHDEO\WRJHWKHUD
FRXQWU\RIKXQGUHGVRIGLDOHFWVLQZKLFKVRPDQ\,QGLDQVDUHOLQJXLVWLFIRUHLJQHUVWRHDFK
RWKHUDQGKDSSLO\WROHUDQWO\VRDFRXQWU\WKDWZHOFRPHVIRUHLJQVHHNHUVRI\RJDSRVHV
RIVSLULWXDOZLVGRPRIDQFHVWUDOURRWVZLWKRSHQDUPVDFRXQWU\ZKHUHRXWVLGHWKHHOLWH
ZRUOGRI6RXWK

'HOKLDQG6RXWK%RPED\,KDYHQRWKHDUGDQ,QGLDQDVNZKHWKHURXWVLGHUVKDYHDULJKWWR
ZULWHWKLQNRUH[LVWRQWKHLUVRLO
%XWLWLVQRWMXVWWKLVGHHSLQWKHERQHVSOXUDOLVPWKDWFKDOOHQJHVWKHZKRJHWVWRZULWH
DERXW,QGLD FRQWLQJHQW ,W LV DOVR WKDW DW WKH YHU\ KHDUW RI ,QGLD
V PXOWLIDULRXV FKDQJHV
WRGD\LVWKLVJOLPPHULQJLGHDWKDW,QGLDQVPXVWEHUHZDUGHGIRUZKDWWKH\GRQRWZKR
WKH\DUH

,GHQWLWLHV \RX QHYHU FKRVH FDVWH JHQGHU ELUWK RUGHU DUH EHFRPLQJ OHVV LPSRUWDQW
GHWHUPLQDQWVRIIDWH<RXUGHHGVKRZKDUG\RXZRUNZKDWULVNV\RXWDNHDUHEHFRPLQJ
PRUHLPSRUWDQW

,WLVWKLVLGHDZKLFK,KDYHIRXQGSXOVDWLQJWKURXJKRXWWKH,QGLDQOD\HUVWKDWOHDYHVD
FHUWDLQ SRUWLRQ RI WKH LQWHOOLJHQWVLD RXW RI V\QF ZLWK WKH VXUURXQGLQJ FRXQWU\ $V 0U
)UHQFKKDVREVHUYHGWKHUHLVDWHQGHQF\LQVRPHRIWKHVHZULWHUVWRYDOXHVRFLDOPRELOLW\
RQO\IRUWKHPVHOYHV:KHQWKHQHZHFRQRP\OLIWVXSWKHKXGGOHGPDVVHVWKHQLWEHFRPHV
WDZGU\FDSLWDOLVPDQGUDSDFLRXVLPSHULDOLVPDQGVRXOOHVVJOREDOL]DWLRQ

)RUWXQDWHO\ IRU WKRVH ZLWKRXW ,QGLDQ SDVVSRUWV WKH QDWLYLVWV
YLVLRQ RI ,QGLD LV XQGHU
GHPRJUDSKLFVLHJH7KH\RXQJDQGWKHUHOHQWOHVVDUH,QGLD
VIXWXUH7KH\FRXOGQRWWKLQN
PRUHGLIIHUHQWO\IURPWKHVHOLWHUDWLV
7KH\VDYRXUWKHIUHHGRPWKH\DUHJDLQLQJWRVHHNWKHLURZQOHYHOLQWKHVRFLHW\DQG
WRILQGWKHLUYRLFHDQGWKH\WHQGWREHGHOLJKWHGDWWKHWKRXJKWWKDWVRPHIRUHLJQHUVGR
WKHVDPHLQ,QGLDDQGORYHWKHLUFRXQWU\DVPXFKDVWKH\GR

:KLFKRIWKHIROORZLQJVWDWHPHQWVLVOHDVWOLNHO\WREHLQIHUUHGIURPWKHSDVVDJH
D <RXQJHU JHQHUDWLRQV RI ,QGLDQV DUH PRUH WROHUDQW RI IRUHLJQ VFULEHV ZKR ZULWH
DERXWWKHLUFRXQWU\
E 7KHZULWHUEHOLHYHVWKDWDVHFWLRQRI,QGLDQLQWHOOLJHQWVLDLVYHU\KRVWLOHWRXSZDUG
HFRQRPLFPRELOLW\
F 0U :LOOLDP 'DOU\PSOH KDV EHHQ DFFXVHG RI UHFRORQLVLQJ ,QGLD WKURXJK KLV
ZULWLQJV
G 0RVW RI WKH FULWLFLVP WKDW KDV EHHQ UHFHQWO\ GLUHFWHG DW 3DWULFN )UHQFK KDV
HPSKDVL]HGPDLQO\RQWKHZULWHU
VXQGHQYKHOPLQJOLWHUDU\VW\OH
:KLFK RI WKH IROORZLQJ ZRXOG EH WKH EHVW VXEVWLWXWH IRU WKH ZRUG CIXVLOODGH
LQ WKH
SDVVDJH"
D %DUUDJH E%UHDFK F7HPSHU G5RZ
7KHZULWHUXVHVWKHSKUDVH
ZKRJHWVWRZULWHDERXW,QGLDFRQWLQJHQW
LQWKLVSDVVDJH
WRUHIHUWR
D )RUHLJQZULWHUVZKRKDYHZULWWHQERRNVRQ,QGLD
E &ULWLFV ZKR KDYH DWWDFNHG IRUHLJQ ZULWHUV ZULWLQJ RQ ,QGLD IRU WKHLU PHUH
IRUHLJQQHVV
F (OLWHUHVLGHQWVRI6RXWK'HOKLDQG6RXWK%RPED\
G &XOWXUDOSOXUDOLVWV
ϳϰ

7KHZULWHUEHOLHYHVWKDWWKHPRVWSHFXOLDUDVSHFWRIWKHFULWLFLVPVWKDW3DWULFN)UHQFK
DQG:LOOLDP'DOU\PSOHKDYHUHFHLYHGLVWKDW
D 0RVWVXFKFRQGHPQDWLRQKDVHPHUJHGIURPHOLWH,QGLDQV
E 6XFKFULWLFVDUHKRVWLOHWRXSZDUGLPPRELOLW\
F 7KHVH FHQVXUHV DUH QRW FHQWHUHG RQ WKH ERRNV RI VXFK ZULWHUV RU WKHLU OLWHUDU\
VW\OHVEXWDUHWDUJHWHGDWWKHLULGHQWLW\LQVWHDGG7KHVHFULWLFVLJQRUHWKHSOXUDO
HWKRVRI,QGLD
:KLFKRIWKHIROORZLQJVWDWHPHQWVFDQEHLQIHUUHGIURPWKHSDVVDJH"
D $VFULSWLYHLGHQWLWLHVOLNHFDVWHWULEHHWFDUHEHFRPLQJPRUHDQGPRUHLPSRUWDQW
ZLWKWKHSDVVDJHRIWLPH
E 3DWULFN)UHQFKEHOLHYHVWKDWWKHQHZPDUNHWIULHQGO\HFRQRPLFSROLFLHVIROORZHG
IRUWKHODVWGHFDGHVKDYHUHVXOWHGLQWKHULVHRIWDZGU\FDSLWDOLVPDQGUDSDFLRXV
LPSHULDOLVP
F 7KHZULWHULVRIWKHRSLQLRQWKDWDVHFWLRQRIWKHLQWHOOLJHQWVLDLVGLYRUFHGIURPWKH
YLHZVRIWKHLUFRPSDWULRWV
G :KLOH,QGLDKDVKLVWRULFDOO\EHHQYHU\KRVSLWDEOHWRDYDULHW\RIUHOLJLRQVLWKDV
QRWEHHQHTXDOO\RSHQWROLQJXLVWLFIRUHLJQHUV
$FFRUGLQJWRWKHLQIRUPDWLRQDYDLODEOHLQWKHSDVVDJHWKHZULWHULVRIWKHRSLQLRQWKDW
D :ULWHUVOLNH3DWULFN)UHQFKGRQRWNQRZWKHUHDO,QGLD
E 0RVWRIWKHFRQGHPQDWLRQKHDSHGRQ'DOU\PSOH)UHQFKDQGKLPVHOIKDVEHHQRQ
H[SHFWHGOLQHV
F ,QGLD
V UHSXWDWLRQ RI SOXUDOLVP LV FRVPHWLF DW EHVW RQH WKDW KLGHV GHHS URRWHG
KDWUHGWRZDUGVIRUHLJQHUV
G 7KHQHZJHQHUDWLRQRI,QGLDQVKDYHLQWHUQDOL]HGWKHLGHDWKDWSHRSOHVKRXOGEH
UHZDUGHGIRUZKDWWKH\GRDQGQRWZKRWKH\DUH
7KHZULWHUUHIHUVWRWKHKLVWRU\RI+LQGXV&KULVWLDQV-HZV0XVOLPVDQG%XGGKLVWV
OLYLQJSHDFHDEO\WRJHWKHULQ,QGLDIRUPLOOLRQVRI\HDUVLQRUGHUWR
D 6KRZ,QGLD
VRSHQQHVVWRIRUHLJQHUVZKRKDYHYLVLWHG,QGLDQLQWKHTXHVWIRU\RJD
E $UJXHWKDW,QGLDLVDFRXQWU\RIKXQGUHGVRIGLDOHFWV
F 'HPRQVWUDWHWKHUHOLJLRVLW\SHUYDGLQJLQDQDYHUDJH,QGLDQG,QGLD
VGHHSLQWKH
ERQHVSOXUDOLVP
7KHZULWHUDUJXHVWKDWWKHQDWXUHRIFULWLFLVPKH'DOU\PSOHDQG)UHQFKKDYHUHFHLYHG
IRUWKHLUERRNVUHQGHUVUHDGLQJWKHLUERRNVVXSHUIOXRXVEHFDXVH
D 6XFKFULWLFLVPKDVEHHQOLPLWHGWRDYHU\VPDOOPLQRULW\RI,QGLDQV
E 7KHVHZULWHUVDUHSRSXODUDPRQJ,QGLDQ\RXWKHYHQDPRQJWKRVHZKRKDYHQRW
UHDGWKHLUERRNV
F 7KHOLWHUDU\VW\OHVRIWKHVHZULWHUVDUHQRWWKHVROHIRFXVRIVXFKFULWLFLVP
G 6XFKFULWLFLVPLVOHVVDERXWZKDWKDVEHHQZULWWHQLQWKHLUERRNVWKDQDERXWZKR
FDQZULWHRQ,QGLD
$FFRUGLQJWRWKHSDVVDJHWKHTXHVWLRQCZKRJHWVWRZULWHDERXW,QGLD
LVFRPSOLFDWHG
EHFDXVH
D ,QGLDKDVEHHQKLVWRULFDOO\RSHQWRDQGWROHUDQWRIIRUHLJQZULWHUVDQGDUWLVWV
E 7KLVLVVXHFDQEHVDWLVIDFWRULO\UHVROYHGRQO\LIZHFDQGHFLGHZKRJHWVWRGHFLGH
ZKRJHWVWRZULWHDERXW,QGLD
F $VFULSWLYHLGHQWLWLHVDUHEHFRPLQJPRUHDQGPRUHLPSRUWDQWLQDJOREDOLVHGZRUOG
G 7KLVZRXOGUHVXOWLQDVKLIWRIDWWHQWLRQIURPZKDWKDVEHHQZULWWHQWRZKRKDV
ZULWWHQ

ϳϱ

%XW ZLWK PDQ\ RXWVLGHUV

,QGLDUHODWHG ERRNV UHFHQWO\ KLWWLQJ ERRNVWRUHV WKHUH WKH
VHQVLWLYLW\ IODUHG LQWR D ERXW RI YLJRURXV OLWHUDU\ QDWLYLVP ZLWK HTXDOO\ YLJRURXV
FRXQWHUSXQFKHV6HOHFWWKHPRVWDSSURSULDWHFKRLFHWRILOOLQWKHEODQNLQWKHDERYH
VHQWHQFH
D +DV E+DYH F:DV GGLG


,IUHOLJLRQDQGFRPPXQLW\DUHDVVRFLDWHGZLWKJOREDOYLROHQFHLQWKHUWYQGVRIPDQ\SHRSOH
WKHQVRDUHJOREDOSRYHUW\DQGLQHTXDOLW\7KHUHKDVLQIDFWEHHQDQLQFUHDVLQJWHQGHQF\
LQUHFHQW\HDUVWRMXVWLI\SROLFLHVRISRYHUW\UHPRYDORQWKHJURXQGWKDWWKLVLVWKHVXUHVW
ZD\WRSUHYHQWSROLWLFDOVWULIHDQGWXUPRLO%DVLQJSXEOLFSROLF\LQWHUQDWLRQDODVZHOODV
GRPHVWLF RQ VXFK DQ XQGHUVWDQGLQJ KDV VRPH HYLGHQW DWWUDFWLRQV *LYHQ WKH SXEOLF
DQ[LHW\ DERXW ZDUV DQG GLVRUGHUV LQ WKH ULFK FRXQWULHV LQ WKH ZRUOG WKH LQGLUHFW
MXVWLILFDWLRQRISRYHUW\UHPRYDOQRWIRULWVRZQVDNHEXWIRUWKHVDNHRISHDFHDQGTXLHW
LQWKHZRUOGSURYLGHVDQDUJXPHQWWKDWDSSHDOVWRVHOILQWHUHVWIRUKHOSLQJWKHQHHG\,W
SUHVHQWV DQ DUJXPHQW IRU DOORFDWLQJ PRUH UHVRXUFHV RQ SRYHUW\ UHPRYDO EHFDXVH RI LWV
SUHVXPHGSROLWLFDOUDWKHUWKDQPRUDOUHOHYDQFH

:KLOHWKHWHPSWDWLRQWRJRLQWKDWGLUHFWLRQLVHDV\WRXQGHUVWDQGLWLVDSHULORXVURXWHWR
WDNH HYHQ IRU D ZRUWK\ FDXVH 3DUW RI WKH GLIILFXOW\ OLHV LQ WKH SRVVLELOLW\ WKDW LI ZURQJ
HFRQRPLFUHGXFWLRQLVPZRXOGQRWRQO\LPSDLURXUXQGHUVWDQGLQJRIWKHZRUOGEXWZRXOG
DOVR WHQG WR XQGHUPLQH WKH GHFODUHG UDWLRQDOH RI WKH SXEOLF FRPPLWPHQW WR UHPRYH
SRYHUW\7KLVLVDSDUWLFXODUO\VHULRXVFRQFHUQVLQFHSRYHUW\DQGPDVVLYHLQHTXDOLW\DUH
WHUULEOH HQRXJK LQ WKHPVHOYHV DQG GHVHUYH SULRULW\ HYHQ LI WKHUH ZHUH QR FRQQHFWLRQ
ZKDWVRHYHU ZLWK YLROHQFH -XVW DV YLUWXH LV LWV RZQ UHZDUG SRYHUW\ LV DW OHDVW LWV RZQ
SHQDOW\7KLVLVQRWWRGHQ\WKDWSRYHUW\DQGLQHTXDOLW\FDQDQGGRKDYHIDUUHDFKLQJ
FRQVHTXHQFHV ZLWK FRQIOLFW DQG VWULIH EXW WKHVH FRQQHFWLRQV KDYH WR EH H[DPLQHG DQG
LQYHVWLJDWHG ZLWK DSSURSULDWH FDUH DQG HPSLULFDO VFUXWLQ\ UDWKHU WKDQ EHLQJ FDVXDOO\
LQYRNHGZLWKXQUHDVRQHGUDSLGLW\LQVXSSRUWRIDCJRRGFDXVH

'HVWLWXWLRQ FDQ RI FRXUVH SURGXFHSURYRFDWLRQ IRU GHI\LQJHVWDEOLVKHG ODZV DQG UXOHV
%XWLWQHHGQRWJLYHSHRSOHWKHLQLWLDWLYHFRXUDJHDQGDFWXDODELOLW\WRGRDQ\WKLQJYHU\
YLROHQW'HVWLWXWLRQFDQEHDFFRPSDQLHGQRWRQO\E\HFRQRPLFGHELOLW\EXWDOVRE\SROLWLFDO
KHOSOHVVQHVV$VWDUYLQJZUHWFKFDQEHWRRIUDLODQGWRRGHMHFWHGWRILJKWDQGEDWWOHDQG
HYHQ WH SURWHVW DQG KROOHU ,W LV WKXV QRW VXUSULVLQJ WKDW RIWHQ HQRXJK LQWHQVH DQG
ZLGHVSUHDGVXIIHULQJDQGPLVHU\KDYHEHHQDFFRPSDQLHGE\XQXVXDOSHDFHDQGVLOHQFH

,QGHHGPDQ\IDPLQHVKDYHRFFXUUHGZLWKRXWWKHUHEHLQJPXFKSROLWLFDOUHEHOOLRQRUFLYLO
VWULIHRULQWHUJURXSZDUIDUH)RUH[DPSOHWKHIDPLQH\HDUVLQWKHVLQ,UHODQGZHUH
DPRQJWKHPRVWSHDFHIXODQGWKHUHZDVOLWWOHDWWHPSWE\WKHKXQJU\PDVVHVWRLQWHUYHQH
HYHQDVVKLSDIWHUVKLSVDLOHGGRZQWKHULYHU6KDQQRQZLWKULFKIRRG/RRNLQJHOVHZKHUH
P\RZQFKLOGKRRGPHPRULHVLQ&DOFXWWDGXULQJWKH%HQJDOIDPLQHRILQFOXGHWKH
VLJKWRIVWDUYLQJSHRSOHG\LQJLQIURQWRIVZHHWVKRSVZLWKYDULRXVOD\HUVRIOXVFLRXVIRRG
GLVSOD\HGEHKLQGWKHJODVVZLQGRZVZLWKRXWDVLQJOHJODVVEHLQJEURNHQRUODZRURUGHU
EHLQJGLVUXSWHG

6HOHFWWKHVWDWHPHQWWKDWFDQEHPRVWSODXVLEO\LQIHUUHGIURPWKHDIRUHVDLGSDVVDJH
D $VRFLHW\SODJXHGE\UHFXUUHQWIDPLQHVFDQQHYHUZLWQHVVSROLWLFDOUHYROXWLRQ
E 5HOLJLRXVGLVFULPLQDWLRQLQHYLWDEO\OHDGVWRYLROHQFHDQGVWULIH
F 'HVWLWXWLRQRIWKHPDVVHVOHDGVWRSHDFHDQGVRFLDOVWDELOLW\
G )DPLQHVDQGVWDUYDWLRQGRQRWQHFHVVDULO\UHVXOWLQSROLWLFDOUHEHOOLRQ
ϳϲ

7KH DXWKRU EHOLHYHV WKDW LW PD\ QRW EH DGYLVDEOH WR HPSKDVLVH RQ WKH FRQQHFWLRQ
EHWZHHQSRYHUW\DQGYLROHQFHDV
D (PSKDVLVRQVXFKFRQQHFWLRQDSSHDOVRQO\WRVHOILQWHUHVWRISHUVRQV
E /LQNLQJ SRYHUW\ DQG YLROHQFH XQGHUPLQHV WKH PRUDO FKDUDFWHU RI DQWLSRYHUW\
PHDVXUHV
F 7KHDEVHQFHRIDQ\HVVHQWLDOFRQQHFWLRQEHWZHHQSRYHUW\DQGYLROHQFHPD\WKHQ
ZHDNHQWKHYHU\UDWLRQDOHRIDQWLSRYHUW\SROLFLHV
G 7KHUHLVQRQHFHVVDU\OLQNEHWZHHQSRYHUW\DQGLQHTXDOLW\
:KLFKRIWKHIROORZLQJEHVWFDSWXUHVWKHFHQWUDODUJXPHQWRIWKLVSDVVDJH
D 5HOLJLRQLVLQH[WULFDEO\OLQNHGZLWKYLROHQFH
E )DPLQHVPD\QRWQHFHVVDULO\UHVXOWLQFLYLOXQUHVW
F *OREDOSRYHUW\DQGLQHTXDOLW\DUHRQHRIWKHIXQGDPHQWDOFDXVHVRIJOREDOYLROHQFH
DQGVWULIH
G %DVLQJDQWLSRYHUW\SURJUDPPHVRQWKHQHHGIRUDYRLGDQFHRIYLROHQFHDQGVWULIH
LVGRWWHGZLWKPDQ\SLWIDOOV
,QWKHJLYHQSDVVDJHWKHZRUGCSHULORXV
PHDQV
D6FDUHG E&RVWO\ F)XWLOH G'DQJHURXV
7KHDXWKRUUHIHUVWRKLVRZQH[SHULHQFHDVDFKLOGGXULQJWKH%HQJDOIDPLQHRI
LQRUGHUWR
D ,OOXVWUDWHKRZUHOLJLRVLW\PD\LQVWLOOSDVVLYHDFFHSWDQFHRIHYHQWKHZRUVWIRUPV
RIVWDUYDWLRQDPRQJSHRSOH
E 5HSXGLDWH WKH DUJXPHQW WKDW UHOLJLRXV GLVFULPLQDWLRQ XVXDOO\ WHQGV WR LQVSLUH
YLROHQWSURWHVWV
F 6XEVWDQWLDWH KLV DVVHUWLRQ WKDW LW LV QRW XQXVXDO WR KDYH WKH PRVW LQWHQVH
VXIIHULQJDQGPLVHU\FRH[LVWZLWKFRPSOHWHSHDFH
G 'HPRQVWUDWH WKDW SHRSOH FRQIURQWHG ZLWK DFXWH VWDUYDWLRQ DUH UHQGHUHG WRR
KHOSOHVVWRSURWHVWHYHUDWDOO
7KHZRUG
GHVWLWXWLRQ
LQWKLVSDVVDJHFDQEHEHVWVXEVWLWXWHGE\
D'HMHFWLRQE,QGLJHQFH F'HIDXOW G'HUHOLFWLRQ
:KLFKRIWKHIROORZLQJVWDWHPHQWLVOHDVWOLNHO\WREHLQIHUUHGIURPWKHSDVVDJH
D +LVWRU\LVUHSOHWHZLWKLQVWDQFHRIIDPLQHVWKDWKDYHRFFXUUHGZLWKRXWWKHUHEHLQJ
PXFKYLROHQWSURWHVW
E 0DQ\ ZULWHUV DQG FULWLFV DUH LQFUHDVLQJO\ DGYRFDWLQJ IRU VWURQJHU SROLFLHV RQ
SRYHUW\UHPRYDORQWKHJURXQGWKDWWKLVZRXOGKHOSSUHYHQWSROLWLFDOWXUPRLO
F 7KH DXWKRUEHOLHYHV WKDW WKH OLQNVEHWZHHQ SRYHUW\DQG YLROHQFHPXVW QHYHUEH
HPSKDVL]HGDWDOO
G (FRQRPLFGHELOLW\LQWXUQLQKLELWVSROLWLFDOIUHHGRP
7KH DXWKRU DVVHUWV WKDW EDVLQJ DQWLSRYHUW\ PHDVXUHV RQ WKH DYRZHG FRQQHFWLRQV
EHWZHHQSRYHUW\DQGYLROHQFHKDVFHUWDLQDSSDUHQWEHQHILWVEHFDXVH
D 3RYHUW\ LV VLPLODU WR UHOLJLRXV H[SORLWDWLRQ LQ WHUPV RI WKH SRWHQWLDO YLROHQW
FRQVHTXHQFHV
E ,WOHDGVWRDOORFDWLRQRIPRUHUHVRXUFHVRQDQWLSRYHUW\SROLFLHV
F 7KH ZLGHVSUHDG FRQFHUQ DERXW ZDU DQG YLROHQFH SURYLGHV D UDWLRQDOH IRU
SRYHUW\UHPRYDOWKDWDSSHDOVWRWKHCVHOILQWHUHVW
RISHUVRQV
G 2WKHUZLVHWKHUHZRXOGQRWKDYHEHHQWKHWHQGHQF\WRMXVWLI\DQWLSRYHUW\SROLFLHV
RQWKHJURXQGWKDWWKH\SUHYHQWSROLWLFDOWXUPRLO
(FRQRPLFUHGXFWLRQLVP
LQWKLVSDVVDJHPHDQV
D 1HJOHFWLQJWKHHFRQRPLFFRQQHFWLRQEHWZHHQSRYHUW\ YLROHQFH
E ([FHVVLYHDFFHQWRQSRYHUW\DQGLQHTXDOLW\
F (PSKDVL]LQJRQWKHOLQNDJHEHWZHHQYLROHQFHSRYHUW\DQGHFRQRPLFHTXDOLW\
ϳϳ

G 7KHYLHZWKDWHYHU\FRQIOLFWLVFDXVHGE\XQGHUO\LQJHFRQRPLFWHQVLRQV
$VHQVHRIHQFURDFKPHQWGHJUDGDWLRQDQGKXPLOLDWLRQFDQEHHYHQHDVLHUBPRELOL]H
IRUUHEHOOLRQDQGUHYROW6HOHFWWKHPRVWDSSURSULDWHZRUGRXWRIWKHIRXURSWLRQVIRU
ILOOLQJWKHEODQNVSDFHLQWKHDIRUHVDLGVHQWHQFH
DIRU EDV FLQWR GWR

*(1(5$/.12:/('*(&855(17$))$,56

:K\ZDV$UXQGKDWL5R\LQYHVWLJDWHGIRUVHGLWLRQ"
D )RUFRPPLWWLQJFRQWHPSWRIFRXUW
E )RUVD\LQJWKDW.DVKPLULVQRWDQLQWHJUDOSDUWRI,QGLD
F )RUV\PSDWKLVLQJZLWKWKH0DRLVWV
G )RUFRQGHPQLQJQXFOHDUWHVWVFRQGXFWHGE\,QGLD

'DPRQ*DOJXW
V
,QD6WUDQJH5RRP
ZDVUHFHQWO\LQQHZVIRU
D 0DQ%RRNHU3UL]HVKRUWOLVW
E :LQQLQJWKH3XOLW]HU3UL]H
F :LQQLQJWKH2UDQJH3UL]HIRUILFWLRQ
G 1RQHRIWKHDERYH

:KRZDVUHFHQWO\LQWKHQHZVZKHQWKH6XSUHPH&RXUWRI,QGLDUHMHFWHGKHUSOHDIRU
(XWKDQDVLDEXWSDYHGWKHZD\IRUOHJDOL]DWLRQRISDVVLYHHXWKDQDVLD"
D$UXQD6KDQEDXJ E$UXQD5R\
F0DU\5R\ G0HGKD3DWNDU

1DJR\D3URWRFROVLJQHGE\,QGLDRQ2FWREHULV
D DQLQWHUQDWLRQDOWUHDW\RIELODWHUDOLQYHVWPHQWEHWZHHQ,QGLDDQG-DSDQ
E DQ LQWHUQDWLRQDO WUHDW\ WR HQVXUH WKDW ORFDO SURGXFH DUH H[SORLWHG RQO\ XQGHU
OLFHQVHDQGIRUWKHFRUQPRQJRRGRIWKHPDQNLQG
F DQLQWHUQDWLRQDOWUHDW\WRHQVXUHWKDWWKHEHQHILWVRIQDWXUDOUHVRXUFHVDQGWKHLU
FRQXQHUFLDOGHULYDWLYHVDUHVKDUHGZLWKORFDOFRPPXQLWLHVG1RQHRIWKHDERYH

-XOLDQ$VVDQJHWKHIRXQGHURI:LNL/HDNVZDVDUUHVWHGLQZKLFKRIWKHIROORZLQJ
QDWLRQV"D8. E6ZHGHQ F86$ G'HQPDUN

:KLFKRIWKHIROORZLQJDUHWKHILYHFRXQWULHVWKDWKDYHGHFLGHGWRELGIRU:RUOG
$WKOHWLFV&KDPSLRQVKLSV"
D 4DWDU86$&KLQD6UL/DQNDDQG%UD]LO
E *HUPDQ\%ULWDLQ+XQJDU\4DWDUDQG6SDLQ
F *HUPDQ\4DWDU,QGLD6SDLQDQG&KLQD
G *HUPDQ\%ULWDLQ&KLQD4DWDUDQG6SDLQ

7KHUHFHQW7XQLVLDQUHYROXWLRQLVNQRZQDV
D2UDQJH5HYROXWLRQ E-DVPLQH5HYROXWLRQ
F3XUSOH5HYROXWLRQ G&UHVFHQW5HYROXWLRQ

7KH1DLYHDQGWKH6HQWLPHQWDO1RYHOLVW
LVDSXEOLFDWLRQRI+DUYDUG8QLYHUVLW\
3UHVVRIZKLFKRIWKHIROORZLQJDXWKRUV"
ϳϴ

D2UKDQ3DPXN E-0&RHW]LH
F3DUWKD&KDWWHUMHH G%HQ2NUL

:KR UHSODFHG /DOLW 0RGL DV WKH ,3/ &KDLUPDQ DQG &RPPLVVLRQHU IURP WKLV \HDU
V
HGLWLRQRIWKH,3/"
D&KLUD\X$PLQ E5DMLY6KXNOD
F5DWQDNDU6KHWW\ G6KDVKDQN0DQRKDU

:KLFKRQHRIWKHIROORZLQJILOPVZDVRIILFLDOO\VHOHFWHGWRFRPSHWHLQWKH12
3&HUWDLQ*ODQFHFDWHJRU\DWWKH&DQQHV)LOP)HVWLYDO"
D8GDDQ E0\1DPHLV.KDQ
F:HGQHVGD\ G'KREL*KDW

5DP.XPXGLQL'HYLOZKRVHELUWKFHQWHQDU\LVEHLQJFHOHEUDWHGLQZDVWKH
D)LUVWZRPDQEDUULVWHURI,QGLD E )LUVW ZRPDQ 0D\RURI
+\GHUDEDG
F)LUVWZRPDQSKRWRJUDSKHULQ,QGLD G)LUVWZRPDQGRFWRURI,QGLD

7KH6XSUHPH&RXUWLQXSKHOGDQRUGHURIWKH%RPED\+LJK&RXUWWROLIWDIRXU
\HDUROGEDQLPSRVHGE\WKH0DKDUDVKWUDJRYHUQPHQWRQSXEOLFDWLRQDQGFLUFXODWLRQ
RIDFRQWURYHUVLDOERRNDXWKRUHGE\$PHULFDQVFKRODU-DPHV/DLQH
,GHQWLI\WKHERRNIURPWKHIROORZLQJ
D&KDWUSDWL6KLYDML E6KLYDML7KH:DUULRU.LQJ
F6KLYDML7KH+LQGX.LQJLQ0XVOLP,QGLD G1RQHRIWKHDERYH

,QZKLFK FDVH GLG WKH1DJSXU %HQFK RI WKH %RPED\ +LJK &RXUW RQ-XO\
FRPPXWHWKHGHDWKVHQWHQFHRIVL[DFFXVHGWRULJRURXVOLIHLPSULVRQPHQW"
D.KDLUODQMLFDVH E%KRSDO*DV/HDNFDVH
F%KDJDOSXUFDVH G1LWKDUL&DVH

7KH6KXQJOXSDQHOZDVFRQVWLWXWHGIRUZKLFKRIWKHIROORZLQJLVVXHV"
D ,QYHVWLJDWHWKH*6SHFWUXP6FDP
E 6XJJHVW&LYLO6HUYLFH5HIRUPV
F 3UREHWKH&RPPRQZHDOWK*DPHV6FDP
G 6XJJHVWUHIRUPVRQFHQWUHVWDWHUHODWLRQVKLS

:KRZDVDSSRLQWHGDVWKH&KDLUPDQRIWKH1DWLRQDO,QQRYDWLRQ&RXQFLOLQ$XJXVW
"D6KDVKL7KDURRU E&KHWDQ%KDJDW
F$ULQGDP&KDXGKXU\ G6DP3LWURGD

1DPHWKH.HQ\DERUQSROLWLFDOOREE\LVWZKRUXQVDILUPFDOOHG9DLVKQDYL&RUSRUDWH
&RPPXQLFDWLRQVDQGKDVUHFHQWO\EHHQLQQHZV"
D%DUNKD'XWW E9LU6DQJKKYL
F9LQD5DPDQL G1LLUD5DGLD

,URP6KDUPLODKDVEHHQIDVWLQJIRUWKHODVW\HDUVWRSURWHVWDJDLQVWZKLFKRIWKH
IROORZLQJLVVXHV"
D 5DSHFDVHVDJDLQVW,QGLDQ$UP\LQ0DQLSXU
E (PHUJHQF\LQ0DQLSXU
F 3UHYHQWLRQRI7HUURULVP$FW
ϳϵ

G $SSOLFDWLRQRIWKH$UPHG)RUFHV6SHFLDO3RZHUV$FWLQ0DQLSXU

7KHLQ6HLQLVWKHQHZO\DSSRLQWHG3UHVLGHQWRIZKLFKRIWKHIROORZLQJQDWLRQV"
D,QGRQHVLD E0DOD\VLD
F0\DQUQDU G7KDLODQG

%DJOLKDUGDPKDVEHHQDPDWWHURIGLVSXWHEHWZHHQZKLFKQDWLRQV"D%DQJODGHVK
DQG0\DQPDU E0\DQPDUDQG&KLQD
F,QGLDDQG&KLQD G,QGLDDQG3DNLVWDQ

:KRLVWKHDXWKRURIWKHERRN7,1'(5%2;7KH3DVWDQG)XWXUHRI3DNLVWDQ"
D+XVDLQ+DTTDQ, E<DVPHHQ1LD]0RKLXGGLQ
F,VKUDW+XVDLQ G0-$NEDU
2QCK-DQXDU\%-3OHDGHUV6XVKPD6ZDUDMDQG$UXQ-DLWOH\ZHUHSUHYHQWHG
IURPHQWHULQJ6ULQDJDUDQGXQIXUOWKHQDWLRQDOIODJ:KDWZDVWKDW4FDOOHG"
D6ZDEKLPDDQ<DWUD E(NWD<DWUD
F0XNWL<DWUD G6ZDUDM<DWUD

:KR LV FKDLULQJ WKH -RLQW 3DUOLDPHQWDU\ &RPPLWWHH -3& RQ WKH * 6SHFWUXP
DOORFDWLRQLVVXH"
D0XUOL0DQRKDU-RVKL E$5DMD
F07KDPEL'XUDL G3&&KDFNR

6DLQD 1HKZDO UHFHQWO\GHIHDWHG -L +\XQ 6XQJ RI 6RXWK .RUHD WR ZLQ ZKLFK RI WKH
IROORZLQJWLWOHV"
D6ZLVV2SHQ*UDQG3UL[*ROG%DGPLQWRQE&RPPRQZHDOWK*DPHV
F6LQJDSRUH2SHQ G+RQJ.RQJ2SHQ

0 #0WKHILOPWRZLQWKHC*ROGHQ3HDFRFN
DWWKHV
,QWHUQDWLRQDO)LOP
)HVWLYDORI,QGLDZDVEDVHGRQWKHOLIHRIZKLFKOHJHQGDU\
FHQWXU\IRONVLQJHUDQG
VSLULWXDOOHDGHU"
D.DELU E6XUM\D6HQ
F.DELU6XPDQ G/DODQ)DNLU

-XVWLFH3&3KXNDQ&RPPLVVLRQRI,QTXLU\ZDVFRQVWLWXWHGWRHQTXLUHLQWRZKLFKRI
WKHIROORZLQJLQFLGHQWV"
D &ODVKHVEHWZHHQ1DJDVDQG/HSFKDVLQ1DJDODQGRQ$XJXVW
E &ODVKHVEHWZHHQ%RGRVDQG0XVOLPVLQ1RUWKHUQ$VVDP
V8GDOJXULGLVWULFWRQ
$XJXVW
F &ODVKHVEHWZHHQ$VVDPHVHDQG%HQJDOLVLQ*XZDKDWLRQ$XJXVW
G 1RQHRIWKHDERYH

7KHILUVWZRPDQ6HFUHWDU\*HQHUDORI6$$5&LVIURPZKLFKFRXQWU\"
D0DOGLYHV E%KXWDQ
F6UL/DQND G,QGLD

8QGHUZKRVHSUHPLHUVKLSZDVWKH:RPHQ
V5HVHUYDWLRQV%LOOWRVHFXUHTXRWDVIRU
ZRPHQLQ3DUOLDPHQWDQGVWDWHOHJLVODWLYHDVVHPEOLHVILUVWLQWURGXFHGLQ3DUOLDPHQW"
D5DMLY*DQGKL E+''HYH*RZGD
ϴϬ

F$WDO%LKDUL9DMSD\HH G0DQPRKDQ6LQJK

:KLFK,ULVKSOD\HUVFRUHGWKHIDVWHVW&HQWXU\LQWKHKLVWRU\RI:RUOG&XS&ULFNHW"
D1LDDO
2LOWHQ E.HYLQ2
%ULHQ
F$&XVDFN G(G-R\FH

:KLFKRIWKHIROORZLQJUHSRUWEURXJKWRXWWKH*VSHFWUXPVFDP"
D&%,UHSRUW E:LNL/HDNV
F&$*UHSRUW G1RQHRIWKHDERYH
,Q )HEUXDU\ *RSD 6DEKDUZDO ZDV DSSRLQWHG DV WKH ILUVW 9LFH &KDQFHOORU RI
ZKLFK8QLYHUVLW\RILQWHUQDWLRQDOVWDWXUH"
D-DZDKDUODO1HKUX8QLYHUVLW\ E$]LP3UHPML8QLYHUVLW\
F9LVYD%KDUDWL8QLYHUVLW\ G 1DODQGD ,QWHUQDWLRQDO
8QLYHUVLW\

:LWK ZKLFK +LQGXWYD DVVRFLDWLRQ DUH 6DGKYL 3UDJ\D 6LQJK 7KDNXU DQG 6ZDPL
$VHHPDQDQGDOOHJHGO\DVVRFLDWHG"
D9LVKZD+LQGX3DULVKDG E6KUL5DP6HQD
F$EKLQDY%KDUDW G$U\D6DPDM

:LWKZKLFKRIWKHIROORZLQJGR\RXDVVRFLDWHWKHQDPH3-7KRPDV"
D&HQWUDO9LJLODQFH&RPPLVVLRQ E/RNSDO
F$QWLFRUUXSWLRQ2PEXGVPDQ G%DQNLQJ2PEXGVPDQ

7KHWK&RPPRQZHDOWK/DZ&RQIHUHQFHZDVKHOGLQZKLFKFLW\"
D'HOKL E%DQJDORUH
F.RONDWD G+\GHUDEDG

*XVWDYR6DQWDRODOOZKRFRPSRVHGWKHPXVLFWRWKHVRQJ6WUDQJHU/LYHVLQWKHPRYLH
'KREL*KDWLVIURPZKLFKRIWKHIROORZLQJQDWLRQV"
D&KLOH E3HUX
F$UJHQWLQD G0H[LFR

:KLFKRQHRIWKHIROORZLQJZDVQRWDZDUGHGDSRUWLRQRIWKHFRQWHVWHGODQGE\WKH
MXGJPHQWRIWKH$OODKDEDG+LJK&RXUWLQSHUWDLQLQJWRWKH$\RGK\DGLVSXWH"
D1LUPRKL$NKDGD E6XQQL&HQWUDO%RDUGRI:DTIV
F5DVKWUL\D6ZD\DPVHYDN6DQJ G %KDJZDQ 6UL 5DP /DOD
9LUDMPDQ

6DQLD0LU]DFODLPHGVLOYHULQWKHWHQQLVPL[HGGRXEOHVFDWHJRU\LQWKH$VLDQ*DPHV
LQ*XDQ]KRXLQ1RYHPEHU:KRZDVKHU3DUWQHU"
D0DKHVK%KXSDWKL E6RPGHY'HYYDUPDQ
F/HDQGHU3DHV G9LVKQX9DUGKDQ

&KLQDREMHFWHGWRWKH'DODL/DPD
VUHFHQWYLVLWWR7DZDQJLQ$UXQDFKDO3UDGHVK
:KDWZDVKHYLVLWLQJLQ7DZDQJ"
D $%XGGKLVWPRQDVWHU\
E $PHPRULDOWR7LEHWDQVPDVVDFUHGE\WKH&KLQHVHDUP\
F 7KHUHVLGHQFHRI3DQFKHQ/DPD
G 1RQHRIWKHDERYH
ϴϭ

:KLFKRQHRIWKHIROORZLQJWULEHVOLYHVLQWKH1L\DPJLUL+LOOVZKLFKLVDWWKHKHDUWRI
WKHFRQWURYHUV\VXUURXQGLQJ9HGDQWD5HVRXUFHV
PLQLQJRSHUDWLRQV"
D0DQQD'KRUD E'RQJULD.RQGK
F3DUGKDQ G0DO3DKDUL\D

:KLFK SURPLQHQW %DUULVWHUSROLWLFLDQ
ZKR ZDV FORVHO\ OLQNHG ZLWK WKH HPHUJHQF\
SURFODPDWLRQRIEUHDWKHGKLVODVWLQ.RONDWDRQW
1RYHPEHU"
D-\RWL%DVX E6LGGKDUWKD6KDQNDU5D\
F+LUHQ0XNKHUMHH G,QGUDMLW*XSWD

:KRLVWKHDXWKRURIWKHERRNC*UHDW6RXO0DKDWPD*DQGKLDQGKLV6WUXJJOHZLWK
,QGLD
FULWLFLVHGIRULWVFRQWHQW"
D1LUDG&&KDXGKXU\ E-RVHSK/HO\YHOG
F.KXVKZDQW6LQJK G+HUPDQQ.DOOHQEDFK
:KLFK*KDUDQDRI&ODVVLFDOVLQJLQJGLG/DWH3DQGLW%KLPVHQ-RVKLEHORQJWR"
D'KUXSDG E0DLKDU
F.LUDQD G(WDZDK

WK0DUFKZDVWKHWK$QQLYHUVDU\RIWKHILUVW,QGLDQVRXQG)LOPWDONLH
:KLFK0RYLHZDVLW"
D-DKDQ$UD E$ODP$UD
F1RRUMHKDQ G1RQHRIWKHDERYH

:KLFKLQWHUQDWLRQDOO\UHQRZQHGPXVLFLDQFROODERUDWHGZLWK5DKXO6KDUPDWRUHOHDVH
DPXVLFDOEXPWLWOHG05# 0(
D5LFKDUG&OD\GHUPDQ E.HQQ\*
F<DQQL G5LFN\0DUWLQ

:DURQ7HUURULVPRU$PHULFDQ6WUDWHJ\IRU*OREDO'RPLQDQFHLVDXWKRUHGE\ZKLFK
RIWKHIROORZLQJDXWKRUV"
D1RDP&KRPVN\ E'HPHWULRV&DUDOH\
F/HD%ULOPD\HU G0DQ]RRU$ODP

0RKDPPDG $VLI 0RKDPPDG $PLU DQG 6DOPDQ %XWW &ULFNHW SOD\HUV RI 3DNLVWDQ
KDYH EHHQ EDQQHG IRU EHLQJ IRXQG JXLOW\ RI VSRW IL[LQJ 7R ZKLFK RI WKH IROORZLQJ
LQVWLWXWLRQVKDYHWKH\DSSHDOHG"
D 3DNLVWDQ&ULFNHW%RDUG
E $QWL&RUUXSWLRQ7ULEXQDORIWKH$VLDQ&ULFNHW&RXQFLO
F &RXUWRI$UELWUDWLRQIRU6SRUW
G $QWL&RUUXSWLRQ7ULEXQDORIWKH,QWHUQDWLRQDO&ULFNHW&RXQFLO

,QGLDQGULYHU.DUXQ&KDQGRNZDVUHFHQWO\LQWKHQHZVIRUZKLFKRIWKHIROORZLQJ"
D %HLQJVHOHFWHGDVDUHVHUYHGULYHUE\7HDP)RUFH,QGLDIRUWKH)RUPXOD2QH
VHDVRQ
E %HLQJ VHOHFWHG DV D UHVHUYH GULYHU E\ 7HDP /RWXV IRU WKH )RUPXOD 2QH
VHDVRQ
F %HLQJ VHOHFWHG DV D UHVHUYHGULYHUE\ 7HDP )HUUDULIRU WKH )RUPXOD 2QH
VHDVRQ
G 1RQHRIWKHDERYH
ϴϮ

7KH 8QLWHG 1DWLRQV )UDPHZRUN &RQYHQWLRQ RQ &OLPDWH &KDQJH PHHWLQJ RI
'HFHPEHUZDVKHOGLQZKLFKRIWKHIROORZLQJSODFHV"
D&RORUDGR E&DQEHUUD
F&DQFXQ G1RQHRIWKHDERYH

:KLFKRIWKHIROORZLQJSDLULQJVLVLQFRUUHFW"
D0XDPPDU*DGGDIL6\ULD E)LGHO&DVWUR&XED
F3RO3RW&DPERGLD G+RVQL0XEDUDN(

7KH5LJKWRI&KLOGUHQWR)XOODQG&RPSXOVRU\(GXFDWLRQ$FWUHTXLUHVSULYDWH
VFKRROV WR HQVXUH WKDW SHUFHQW RI WKHLU VWXGHQWV FRPH IURP ZHDNHU VHFWLRQV DQG
GLVDGYDQOLDJHGJURXSV"
D E
F G

6ULNULVKQD&RPPLWWHHZKLFKUHFHQWO\VXEPLWWHGLWVUHSRUWZDVFRQVWLWXWHGIRUZKLFK
RIWKHIROORZLQJLVVXHV"
D0XPEDLERPEEODVWFDVHE0DOHJDRQEODVWFDVH
F7HOHQJDQDLVVXH G * 6SHFWUXP FRUUXSWLRQ LVVXH
0$7+(0$7,&6

$NEDUZLOOWXUQZKHQKLVVRQ-HKDQJLUWXUQV:KDWZLOOEH$NEDU
VDJHZKHQ
LWZLOOEHH[DFWO\WLPHVWKDWRI,HKDQJLU"
D EF G

$UXQFDQFOLPED&RFRQXWWUHHE\IHHWE\HDFKOLIWKRZHYHUKHVOLSVIHHWHYHU\
WLPHKHPDNHVWKHQH[WOLIW+RZPDQ\LQGLYLGXDOOLIWVKHZLOOKDYHWRUHDFKWKHWRS
RIWKH&RFRQXWWUHHRIIHHW"
D EF G

-RJHQ
VWD[DEOHLQFRPHIRULV5V7KHWD[UDWHVDUHLQLOIRUILUVW
LLIRUDQGLLLIRUWKHUHPDLQLQJ
+LV7D[OLDELOLW\LV
D5V E5V F5V
G5V

7KHUDWLRRIWZRQXPEHUVLV%XWLIHDFKQXPEHULVLQFUHDVHGE\WKHUDLLR
EHFRPHV7KHVXPRIVXFKQXPEHUVLV
DEFG

'XULQJWKHDFDGHPLFVHVVLRQLQ%DQDUDV+LQGX8QLYHUVLW\9DUDQDVLWKH
QXPEHURIVWXGHQWVVWXG\LQJ$UWV/DZDQG&RPPHUFHZDVLQWKHUDWLRRI,I
GXULQJ WKH DFDGHPLF VHVVLRQ WKH QXPEHU RI VWXGHQWV VWXG\LQJ $UWV /DZ
DQG&RPPHUFHLQFUHDVHGE\DQGUHVSHFWLYHO\ZKDWZLOOEHQHZUDWLR"
D EF G

$ FXVWRPLVHG MHZHOOHU\ ZDV VROG DW / ZLWK GLVFRXQW RQ WKH
PDNLQJ
FKDUJHV

WKH SD\PHQW PDGH IRU PDNLQJ FKDUJHV ZDV = ZKDW LV WKH
#UDWHRIGLVFRXQWRQWKHSURGXFW"
D EF G
ϴϯ

$PDQZDONVIURPKLVKRXVHWRWKH5DLOZD\VWDWLRQWRFDWFKDWUDLQZKLFKLVUXQQLQJ
DVSHUVFKHGXOH,IKHZDONVDWNPKUKHPLVVHVWKHWUDLQE\PLQXWHV+RZHYHU
LI KH ZDONV DW NPKU KH UHDFKHV WKH VWDWLRQ PLQXWHV EHIRUH WKH GHSDUWXUH RI
UDLQ7KHGLVWDQFHRIKLVKRPHWRWKH5DLOZD\6WDWLRQLVDNPENPF
NPGNP

'LIIHUHQFHEHWZHHQWZRQXPEHUVLVDQGGLIIHUHQFHEHWZHHQWKHLUVTXDUHVLV
/RZHVWRIWKHWZRQXPEHUVLV
D EF G

0V -KXODQ *RVZDPL VFRUHV UXQV LQ WKH
K LQQLQJV RI KHU FDUHHU DQG WKXV
LQFUHDVHVKHUDYHUDJHE\$IWHUWKH
LQQLQJKHUDYHUDJHLV
D EF G

,QDVWDIIURRPRIWHDFKHUVGULQNEODFNFRIIHHPLONFRIIHHGULQNERWKWHD
DQG HLWKHU W\SH RI FRIIHH DQG HYHU\RQH GULQNV HLWKHU RI WKH EHYHUDJHV +RZ PDQ\
WHDFKHUVGULQNRQO\WHD"
DLQVXIILFLHQWLQIRUPDWLRQ E F G
$ER[FRQWDLQVGLVFVZKLFKDUHQXPEHUHGIURPWR,IRQHGLVFLVGUDZQDW
UDQGRPIURPWKHER[WKHSUREDELOLW\WKDWLWEHDUVDSHUIHFWVTXDUHQXPEHULV
D E F G
7ZRFRLQVDUHWRVVHGVLPXOWDQHRXVO\7KHSUREDELOLW\RIJHWWLQJDWWKHPRVWRQHKHDG
LV
D67 89 & G

$IODJSROHPKLJKFDVWVDVKDGRZPORQJ:KDWLVWKHGLVWDQFHRIWKHWRSRI
WKHSROHIURPWKHIDUHQGRIWKHVKDGRZ"
DPHWUHVEPHWUHV FPHWUHV GPHWUHV

7KH
WHUPRIWKHVHULHVLV
DEFG

$EDJFRQWDLQVUHGEDOOVEOXHEDOOVDQGJUHHQEDOOV,IDEDOOLVSLFNHGXS
IURPWKLVEDJDWUDQGRPZKDWLVWKHSUREDELOLW\RISLFNLQJDEOXHEDOO"
D E F G1RQHRIWKHDERYH

$F\OLQGULFDOWHQQLVEDOOFRQWDLQHUFDQFRQWDLQPD[LPXPWKUHHEDOOVVWDFNHGRQRQH
DQRWKHU7KHWRSDQGERWWRPEDLOVDOVRWRXFKWKHOLGDQGWKHEDVHRIWKHFRQWDLQHU
UHVSHFWLYHO\,IWKHYROXPHRIDWHQQLVEDOOLVFP
WKHQZKDWLVWKHYROXPHRIWKH
FRQWDLQHU"
DFPEFPFFPGFP

5DQMHHWKDZDONVDURXQGWKHFLUFXODUSDUNLQ,6PLQXWHV
VKHZDONVDWWKHUDWH
RINPKUKRZPXFKGLVWDQFHZRXOGVKHKDYHWRWUDYHODWWKHPLQLPXPWRUHDFK
WKHFHQWUHRIWKHSDUNIURPDQ\SRLQWRQLWVSHULPHWHU"
DPHWUHEPHWUHFPHWUHGPHWUH

,I[[ WKHQWKHYDOXHRI[LV
D E F G
ϴϰ

)UDQFLVKDVHJJVRXWRIZKLFKHJJVZHUHVROGDWORVVWKDQWKHFRVWSULFH
$WZKDWPDUNXSVKRXOGKHVHOOWKHUHPDLQLQJHJJVWRFRYHUKLVORVVHV"
D E F G

,I WKH OHQJWK DQG KHLJKW RI D EULFN LQFUHDVHV E\ HDFK UHVSHFWLYHO\ DQG WKH
EUHDGWKUHGXFHVE\ZKDWLVWKHSHUFHQWDJHFKDQJHLQWKHYROXPHRIWKHEULFN"
D EF G

/2*,&$/5($621,1*

1RWH7KHIROORZLQJVL[TXHVWLRQVFRPSULVHRIRQHRUPRUHVWDWHPHQWV3OHDVHDQVZHUWKH
TXHVWLRQV RQ WKH EDVLV RI WKH JLYHQ VWDWHPHQWV 3OHDVH PDNH WKH IDFWXDO DVVXPSWLRQV
UHTXLUHGE\WKHTXHVWLRQHYHQLI\RXEHOLHYHWKHVWDWHPHQWLVIDOVH

C:KHUHWKHUHLVVPRNHWKHUHLVILUH

:KLFKRIWKHIROORZLQJVWDWHPHQWVLIWUXHZRXOGVKRZWKDWWKHDERYHVWDWHPHQWLVIDOVH"
D 7KHUHLVVRPHWLPHVVPRNHZKHUHWKHUHLVQRILUH
E 7KHUHLVVRPHWLPHVILUHZKHUHWKHUHLVQRVPRNH
F 7KHUHLVQRILUHZKHUHWKHUHLVQRVPRNH
G 1RQHRIWKHDERYH

C:KHUHWKHUHLVSRYHUW\WKHUHDUHDOZD\VWKLHYHV

D $PHULFDLVDULFKFRXQWU\DQGWKHUHDUHWKLHYHVLQ$PHULFD
E %KXWDQLVDSRRUFRXQWU\DQGWKHUHDUHQRWKLHYHVLQ%KXWDQ
F %DQJODGHVK LV D SRRU FRXQWU\ DQG WKHUH DUH PDQ\ WKLHYHV LQ %DQJODGHVK G
1HSDOLVDULFKFRXQWU\DQGWKHUHDUHQRWKLHYHVLQ1HSDO

6WDWHPHQW6XJDULVEDGIRUSHRSOHZLWKGLDEHWHV
6WDWHPHQW/HHODGRHVQRWHDWVXJDU
$VVXPLQJWKDW6WDWHPHQWVODQGDUHWUXHZKLFKRIWKHLXLLXZLQJVWDWHPHQWVIROORZV"
D /HHODKDVGLDEHWHV E6XJDOLVEDIRU/HHOD
F3HRSOHZLWKGLDEHWHVGRQRWHDWVXJDUG1RQHRIWKHDERYH

6WDWHPHQW,3HRSOHZKRUHDGIDVKLRQPDJD]LQHVGRQRWOLNHWRUHDGILFWLRQ6WDWHPHQW
7HQ]LQGRHVQRWUHDGIDVKLRQPDJD]LQHV
$VVXPLQJ WKDW 6WDWHPHQWV,DQG DUH WUXHZKLFK RI WKH IROORZLQJFRQFOXVLRQVPLJKW EH
VDLGWRIROORZ"
D 7HQ]LQOLNHVWRUHDGILFWLRQ
E 7HQ]LQPD\RUPD\QRWOLNHWRUHDGILFWLRQ
F 7HQ]LQGRHVQRWOLNHWRUHDGILFWLRQ
G 7HQ]LQGRHVQRWOLNHIDVKLRQPDJD]LQHV

6XOHLPDQ$OO&RPPXQLVWVDUHDWKHLVWV
6KHHED7KDWLVQRWWUXH

:KLFKRIWKHIROORZLQJLIWUXHZRXOGPDNH6KHHED
VUHSO\WKHPRVWFRQYLQFLQJ"
D 0\XQFOHLVDQDWKHLVWEXWKHLVQRWD&RPPXQLVW
E 0\XQFOHLVD&RPPXQLVWEXWKHLVQRWDQDWKHLVW
ϴϱ

F 0\XQFOHLVD&RPPXQLVWDQGDQDWKHLVW
G 0\XQFOHLVQHLWKHUD&RPPXQLVWQRUDQDWKHLVW

6WDWHPHQWO$OOSLQJRVDUHE\URQLF
6WDWHPHQW6KDOLVWRLVE\URQLF
6WDWHPHQW7KHUHIRUHBBBBBBBBBBBBBBBBB
)LOOLQWKHEODQN
D 6KDOLVWRLVDSLQJR E6KDOLVWRLVQRWDSLQJR
F6KDOLVWRLVQRWE\URQLF G1RQHRIWKHDERYH

)RU WKH IROORZLQJ HLJKW TXHVWLRQV VWXG\ WKH VHTXHQFH RI OHWWHUV QXPEHUV RU ZRUGV
FDUHIXOO\WRZRUNRXWWKHSDWWHUQRQZKLFKLWLVEDVHGDQGWKHUHIRUHZKDWWKHQH[WLWHP
LQWKHVHTXHQFHPXVWEH)RUH[DPSOHWKHVHTXHQFHC$&(*BBBKDVRGGQXPEHUHG
OHWWHUVRIWKHDOSKDEHWWKHUHIRUHWKHQH[WLWHPPXVWEHC,
7KHPHDQLQJVRIWKHZRUGVDUH
LUUHOHYDQW

$%'*.3B
:KDWLVWKHODVWDOSKDEHWLQWKLVVHTXHQFH"
D= E< F9 G;

%&(*.046
:KDWLVWKHQH[WDOSKDEHWLQWKLVVHTXHQFH"
D7 E8 F9 G:
=;71
:KDWLVWKHQH[WDOSKDEHWLQWKLVVHTXHQFH
"
D( E) F* G+

C$SSOH$SSOLFDWLRQBBBBBBBB$SSURYDO$SULFRW$SULO
:KLFKRI
WKHIROORZLQJEHVWILWVLQWKHEODQN"
D$UURJDQW E$SULO F$SSURSULDWH G$SLDU\

C6XQGD\0RQGD\:HGQHVGD\6DWXUGD\:HGQHVGD\0RQGD\
6XQGD\BBBBBBBBBBBB

:KLFKRIWKHIROORZLQJEHVWILWVLQWKHEODQN"
D6XQGD\ E7XHVGD\ F6DWXUGD\G7KXUVGD\

CBBBBBBBBBBBB
:KLFKQXPEHULVPLVVLQJ"
D E F G

C*\PK\PQO\Q[S\JP\UK\WKP

:KLFKRIWKHIROORZLQJZRUGVGRHVQRWEHORQJWRWKHDERYHVHW"
D0\UUK E0\WKLF F)O\E\ G6\]\J\

$DGYDUN(HULHOLZL2RORQJ
:KLFKRIWKHIROORZLQJZRUGVIROORZVWKHSDWWHUQRIWKLVVHULHV"
D8YXOD E8XOLXP F8UDQLXP G8UDQXV
)RU WKH IROORZLQJ QLQH TXHVWLRQV UHDG WKH JLYHQ DUJXPHQW RU VWDWHPHQW FDUHIXOO\
PDNLQJ DQ\ IDFWXDO DVVXPSWLRQV QHFHVVDU\7KHQFKRRVH WKHEHVW DQVZHU RXW RI WKH
IRXUFKRLFHVWRWKHTXHVWLRQDVNHG1RWHWKDWQRWDOOWKHIDFWVJLYHQZLOOEHUHOHYDQWIRU
GHWHUPLQLQJWKHDQVZHU
ϴϲ

C&KLQDKDVDKLJKHUOLWHUDF\UDWHWKDQ,QGLD7KLVLVGXHWRWKHJUHDWHUHIILFLHQF\RI
WKH &RPPXQLVW V\VWHP (IILFLHQF\ LV VRUHO\ ODFNLQJ LQ ,QGLD
V GHPRFUDWLF V\VWHP
7KHUHIRUHGHPRFUDF\LVWKHELJJHVWREVWDFOHWR,QGLD
VDFKLHYLQJOLWHUDF\

:KLFKRIWKHIROORZLQJLIQPHZRXOGGLUHFWO\XQGHUPLQHWKHDERYHDUJXPHQW"
D ,QHIILFLHQF\LVHTXDOO\DSUREOHPLQGHPRFUDFLHVDQG&RPPXQLVWFRXQWULHV
E &RPPXQLVWV\VWHPVGRQRWUHVSHFWKXPDQULJKWV
F )UHHGRPLVPRUHLPSRUWDQWWKDQOLWHUDF\
G &KLQDLVVORZO\PDNLQJWKHWUDQVLWLRQWRGHPRFUDF\

C,Q%&DMXU\LQ$WKHQVFRQGHPQHG6RFUDWHVWRGHDWKIRULPSLHW\DQGFRUUXSWLQJ
WKHPRUDOVRIWKH\RXWK6RFUDWHV
IULHQGVRIIHUHGWRKHOSKLPHVFDSHEXW6RFUDWHVUHIXVHG
6RFUDWHV
DUJXHG WKDW WKH IDFW WKDW KH KDG OLYHG LQ $WKHQV IRU VR PDQ\ \HDUV PHDQW WKDW KH KDG
FRPPLWWHGKLPVHOIWRREH\LQJLWVODZV,WZRXOGWKHUHIRUHEHZURQJIRUKLPWREUHDNWKRVH
YHU\ODZVKHZDVLPSOLFLWO\FRPPLWWHGWRREH\LQJ

:KLFK RQH RI WKH IROORZLQJ FODLPV FRQVWLWXWHV WKH PRVW SODXVLEOH FKDOOHQJH WR 6RFUDWHV

DUJXPHQW"
D /RQJUHVLGHQFHRQO\FRPPLWVVRPHRQHWRREH\LQJMXVWODZVDQG6RFUDWHVZDVFRQYLFWHG
XQGHUDQXQMXVWODZ
E /RQJUHVLGHQFHE\LWVHOIGRHVQRWLPSO\DFRPPLWPHQWWRREH\LQJODZVVLQFHRQHQHYHU
PDGHDQ\H[SOLFLWFRPPLWPHQW
F 2EHGLHQFHWRWKHODZLVQRWDOZD\VUHTXLUHG
G 7KHUHLVQRSRLQWLQHVFDSLQJIURPSULVRQVLQFHRQHZLOODQ\ZD\EHFDSWXUHGDJDLQ
C6RIW GULQNV KDYH EHHQ VKRZQ E\ VFLHQWLVWV WR EH EDG IRU WKH WHHWK 7KHUHIRUH WKH
JRYHUQPHQWZRXOGEHMXVWLILHGLQEDQQLQJDOOVRIWGULQNVIURPWKH,QGLDQPDUNHW

$VVXPLQJ WKDW WKH IDFWXDO FODLP LQ WKH DERYH DUJXPHQW LV WUXH ZKDW HOVH QHHGV WR EH
DVVXPHGIRUWKHFRQFOXVLRQWRIROORZ"
D 7KHJRYHUQPHQWLVMXVWLILHGLQEDQQLQJDQ\WKLQJWKDWLVEDGIRUGHQWDOKHDOWK
E 6RIWGULQNVDUHDOVREDGIRUJDVWULFKHDOWK
F 'HQWDOK\JLHQHLVDPDWWHURIJUHDWFRQFHP
G 1RIXUWKHUDVVXPSWLRQVDUHQHFHVVDU\

C,QRUGHUWREHHOLJLEOHIRUHOHFWLRQWRWKH/RN6DEKDDSHUVRQPXVWEHDWOHDVW
\HDUV RI DJH 0RUHRYHU RQH PXVW QRW EH EDQNUXSW 7KHUHIRUH ,DWLQGHU 6LUJK RYHU
\HDUVRIDJHDQGZLWKRXWDQ\FULPLQDOFRQYLFWLRQVFDQQRWEHWKH6SHDNHURIWKH/RN6DEKD
VLQFHKHKDVMXVWILOHG
IRUEDQNUXSWF\

:KLFKRIWKHIROORZLQJPXVWEHDVVXPHGIRUWKHFRQFOXVLRQWRIROORZORJLFDOO\"D$Q\RQH
RYHU\HDUVRIDJRLVHOLJLEOHWREH6SHDNHURIWKH/RN6DEKDDVORQJDVKHRUVKHKDVQR
FULPLQDOFRQYLFWLRQV
E 3HRSOHZLWKRXWFULPLQDOFRQYLFWLRQVFDQQRWEHHOHFWHGWRWKH/RN6DEKDHYHQLIWKH\DUH
QRWEDQNUXSW
F 2QO\WKRVHHOLJLEOHIRUHOHFWLRQWRWKH/RN6DEKDDUHHOLJLEOHWREHWKH6SHDNHURIWKH/RN
6DEKD
G 7KHUHLVQRPLQLPXPDJHUHTXLUHPHQWIRUWKH6SHDNHURIWKH/RN6DEKD
ϴϳ

C$VDFHQWXU\GUDZVWRDFORVHSHRSOHVWDUWEHKDYLQJPXFKOLNHSHRSOHFRPLQJWRWKH
HQGRIDORQJOLIH3HRSOHDSSURDFKLQJGHDWKRIWHQVWDUWUHIOHFWLQJRQWKHHYHQWVRIWKHLU
OLYHV6LPLODUO\
SHRSOHDOLYHLQBBBBBBBBB

:KLFKRIWKHIROORZLQJPRVWORJLFDOO\FRPSOHWHVWKHSDUDJUDSKDERYH"
D VWDUWHGUHIOHFWLQJRQWKHHYHQWVRIWKHWZHQWLHWKFHQWXU\
E VWDUWHGWRUHIOHFWRQWKHHYHQWVRIWKHLUOLYHV
F VWDUWHGWRIHDUGHDWK
G VWDUWHGWRZRQGHUZKDWWKH\HDUZRXOGEULQJ

7KH 5RPDQ SRHW DQG SKLORVRSKHU /XFUHWLXV SURSRVHG WKH IROORZLQJ WKRXJKW
H[SHULPHQWLIWKHXQLYHUVHKDVDERXQGDU\ZHFDQWKURZDVSHDUDWKLVERXQGDU\,IWKH
VSHDU IOLHV WKURXJK WKHQ LW LV QRW D ERXQGDU\ ,I WKH VSHDU ERXQFHV EDFN WKHUH PXVW
VRPHWKLQJEH\RQGWKLVERXQGDU\WKDWLVLWVHOILQVSDFHZKLFKPHDQVLWLVQRWDERXQGDU\
DWDOO(LWKHUZD\LWWXUQVRXWWKDWWKHXQLYHUVHKDVQRERXQGDU\

+RZEHVWFDQWKHIRUPRI/XFUHWLXV
DUJXPHQWIRUWKHLQILQLW\RIVSDFHEHGHVFULEHG"
D /XXHWLXVVKRZVWKDWSRVLWLQJILQLWHVSDFHOHDGVWRDFRQWUDGLFWLRQ
E /XFUHWLXVVKRZVWKDWILQLWHVSDFHLVLQFRQVLVWHQWZLWKSK\VLFV
F /XFUHWLXVVKRZVWKDWILQLWHVSDFHLVLQFRQVLVWHQWZLWKPDWKHPDWLFVG/XFUHWLXVVKRZV
WKDWILQLWHVSDFHLVLQFRQFHLYDEOH

C8WLOLWDULDQVEHOLHYHWKDWWKHULJKWDFWLRQLVWKDWZKLFKSURGXFHVWKHPRVWKDSSLQHVV

:KLFKRIWKHIROORZLQJFODLPVLV"58 ZLWKWKHXWLOLWDULDQYLHZ"

D 7KHULJKWWKLQJWRGRLVWRPDNHWKHFRQVHTXHQFHVRIRXUDFWLRQVDVJRRGDVSRVVLEOH
E 7KHULJKWWKLQJWRGRLVWRGRRXUGXW\ZKDWHYHUWKHFRQVHTXHQFHV
F 7KH ULJKW WKLQJ WR GR LV WR DFW RQ D UXOH ZKLFK LI IROORZHG ZLGHO\ SURGXFHV WKH PRVW
KDSSLQHVV
G 7KHULJKWWKLQJWRGRLVWRDFWIURPPRWLYDWLRQVZKLFKSURGXFHWKHPRVWKDSSLQHVV

C6HQWKLO JRHV WR $PEDOD IRU WKH ILUVW WLPH LQKLV OLIH 2Q WKH ZD\ IURP WKH UDLOZD\
VWDWLRQWRKLVKRWHOKHVHHVWZHOYHSHRSOHDOORIWKHPPDOH+HFRQFOXGHVWKDWWKHUHDUH
QRZRPHQLQ$PEDOD$VDPDWWHURIIDFWWKHUHDUHPDQ\WKRXVDQGVRIZRPHQLQ$PEDOD

:KLFKRIWKHIROORZLQJEHVWGHVFULEHV6HQWKLO
VHUURU"
D 6HQWKLOZDVPLVOHGE\LUUHOHYDQWGHWDLOV
E 6HQWKLOJHQHUDOLVHGRQWKHEDVLVRILQVXIILFLHQWHYLGHQFH
F 6HQWKLOZDVELDVHGDJDLQVWZRPHQ
G 6HQWKLOZDVEDGDWFRXQWLQJ

C,WWRRNPDQ\FHQWXULHVEHIRUHWKHFRXQWULHVRI(XURSHFRXOGUHVROYHWKHLULQWHUQDO
SUREOHPV RI YLROHQFH DQG FRUUXSWLRQ WR EHFRPH WKH VWDEOH QDWLRQVWDWHV WKH\ DUH
7KHUHIRUHLWZLOOWDNHPDQ\FHQWXULHVIRU,QGLDWRDFKLHYHLQWHUQDOVWDELOLW\

$VVXPLQJWKDWWKHIDFWXDOFODLPVLQWKHDUJXPHQWDERYHDUHKXHZKDWPXVWEHDVVXPHG
LQRUGHUIRUWKHFRQFOXVLRQWRIROORZ"
D &RXQWULHVHYHU\ZKHUHPXVWIROORZWKHVDPHSDWKVWRZDUGVVWDELOLW\
E ,QGLDLVJUDGXDOO\SURJUHVVLQJWRZDUGVLQWHUQDOVWDELOLW\
F ,QGLDQFDQOHDUQKRZWRDFKLHYHVWDELOLW\E\VWXG\LQJ(XURSH
VH[DPSOHG,QGLDKDV
QRKRSHRIDFKLHYLQJVWDELOLW\LQWKHQHDUIXWXUH
ϴϴ

,Q WKH IROORZLQJ WKUHH TXHVWLRQV DVVXPH WKDW D CIDFW
H[SUHVVHV VRPHWKLQJ WKDW FDQ EH
SURYHGE\FOHDUDQGREMHFWLYHGDWD$QRSLQLRQH[SUHVVHVDMXGJPHQWYLHZDWWLWXGHRU
FRQFOXVLRQWKDWLVQRWEDFNHGE\GDWD

:KLFK RQH RI WKH IROORZLQJ VWDWHPHQWV LV EHVW GHVFULEHG DV DQ DVVHUWLRQ RI RSLQLRQ
UDWKHUWKDQDQDVVHUWLRQRIIDFW"
D %UD]LO&KLQDDQG,QGLDDUHQRZDPRQJWKHODUJHVWHPLWWHUVRIJUHHQKRXVHJDVHV
E 6FLHQWLVWVDJUHHWKDWKXPDQDFWLYLW\LVDQLPSRUWDQWFDXVHRIFOLPDWHFKDQJH
F 7KH,QGLDQJRYHUQPHQW
VSROLF\RQFOLPDWHFKDQJHLVPLVJXLGHG
G 7KH,QGLDQJRYHUQPHQW
VSROLF\RQFOLPDWHFKDQJHKDVFKDQJHGVLJQLILFDQWO\LQWKHODVW
ILYH\HDUV

$ 7KH QXPEHU RI SHRSOH PLJUDWLQJ LQWR %HQJDOXP KDV LQFUHDVHG VLJQLILFDQWO\ LQ
UHFHQW\HDUV%7KLVLVEHFDXVH%HQJDOXURSURYLGHVPRUHHFRQRPLFRSSRUWXQLWLHVWKDQ
WKHWRZQVDQGYLOODJHVIURPZKLFKWKHVHPLJUDQWVFRPH&7KLVVXGGHQLQIOX[RIPLJUDQWV
KDV PDGH WKH FLW\ OHVV SOHDVDQW WR OLYH LQ ' 7KH VXFFHVV RI WKH JRYHUQPHQW
V UXUDO
HPSOR\PHQW JXDUDQWHH DFW PLJKW KDYH WKH HIIHFW RI VWHPPLQJ VRPH UXUDOXUEDQ
PLJUDWLRQ

:KLFKRQHRIWKHDERYHVWDWHPHQWVLVEHVWGHVFULEHGDVDQDVVHUWLRQRIRSLQLRQUDWKHUWKDQ
DQDVVHUWLRQRIIDFW"
D$ E% F& G'

:KLFK RQH RI WKH IROORZLQJ VWDWHPHQWV LI WUXH LV EHVW GHVFULEHG DV DQ DVVHUWLRQ RI
RSLQLRQUDWKHUWKDQDQDVVHUWLRQRIIDFW"
D0XPEDLLVODUJHUWKDQ3XQH E0XPEDLLVVPDOOHUWKDQ3XQH
F0XPEDLLVPRUHFXOWXUHGWKDQ3XUH G0XPEDLLVPRUHFURZGHGWKDQ3XQH
)RU WKH IROORZLQJ WKUHH TXHVWLRQV WKHUH DUH WZR RU PRUH VWDWHPHQWV DORQJ ZLWK IHZ
FRQFOXVLRQVGHGXFHGIURPWKHVWDWHPHQWV<RXDUHUHTXLUHGWRDQVZHURQWKHEDVLVRIWKH
VWDWHPHQWVDQGWKHFRQFOXVLRQV0DNHWKHIDFWXDODVVXPSWLRQVUHTXLUHGE\WKHTXHVWLRQ
HYHQLI\RXEHOLHYHWKHVWDWHPHQWLVDFWXDOO\IDOVH

6WDWHPHQW6RPHDHURSODQHVDUHEDOORRQV
6WDWHPHQW6RPHEDOORRQVDUHURFNHWV

&RQFOXVLRQV
$ 6RPHDHURSODQHVDUHURFNHWV
% 6RPHURFNHWVDUHWDEOHV
& $OOWKHURFNHWVDUHEDOORRQV
' $OOWKHEDOORRQVDUHDHURSODQHV

$VXPLQJWKDWVWDWHPHQWVDQGDUHWUXHZKLFKFRQFOXVLRQVIROORZ
D2QO\%DQG' E2QO\$DQG&
F2QO\' G1RQHRIWKHDERYH

6WDWHPHQW$OOZKDOHVDUHILVK
6WDWHPHQW6RPHILVKDUHQRWDPSKLELDQV
6WDWHPHQW$OOZKDOHVDUHDPSKLELDQV
6WDWHPHQW6RPHDPSKLELDQVDUHQRWILVK
ϴϵ

&RQFOXVLRQV
$ 6RPHILVKDUHDPSKLELDQV
% 6RPHDPSKLELDQVDUHILVK
& 2QO\ZKDOHVDUHERWKILVKDQGDPSKLELDQV
' $OODPSKLELDQVDUHILVK
$VVXPLQJRQO\WKDW6WDWHPHQWVDQGDUHWUXHZKLFKRIWKHDERYHFRQFOXVLRQVPD\
EHGHGXFHG"
D2QO\$DQG% E2QO\&
F2QO\' G1RQHRIWKHDERYH

6WDWHPHQW$OOOLEUDULHVDUHODERUDWRULHV
6WDWHPHQW1RODERUDWRULHVDUHKRVWHOV

&RQFOXVLRQV
$ $OOODERUDWRULHVDUHOLEUDULHV
% 6RPHKRVWHOVDUHOLEUDULHV
& 6RPHOLEUDULHVDUHKRVWHOV
' 1ROLEUDU\LVDKRVWHO

$VVXPLQJWKDWVWDWHPHQWVDQGDUHWUXHZKLFKFRQFOXVLRQVIROORZ"
D2QO\$DQG% E2QO\%DQG&
F2QO\&DQG' G2QO\'

)RU WKH IROORZLQJ VL[WHHQ TXHVWLRQV UHDG WKH JLYHQ SDVVDJH FDUHIXOO\ DQG DQVZHU WKH
TXHVWLRQVWKDWIROORZ
3DVVDJHIRUFOXHVWLRQV

,QVWHDG RI EHLQJ FRQFHUQHG ZLWK ZKDW DFWXDOO\ KDSSHQV LQ SUDFWLFH >HFRQRPLFV@ LV
LQFUHDVLQJO\ UHRFFXSLHG ZLWK GHYHORSLQJ SVHXGRPDWKHPDWLFDO IRUPXODV 7KHVH SURYLGH
PRGHOV RI EHKDYLYX ZKLFK QHYHU TXLWH ILW ZKDW DFWXDOO\ KDSSHQV LQ D ZD\ ZKLFK
UHVHPEOHV WKH SK\VLFDO VFLHQFHV RQH ZURQJ LQVWHDG RI HTXDWLRQV GHVFULELQJ UHDOLW\
HFRQRPLFVSURGXFHVHTXDWLRQVGHVFULELQJGHDOFRQGLWLRQVDQGWKHRUHWLFDOFODULW\RIDW\SH
ZKLFKQHYHURFFXUVLQSUDFWLFH

:KLFKRIWKHIROORZLQJEHVWVXPPDULVHVWKHDUJXPHQWRIWKLVSDUDJUDSK"
D (FRQRPLFVRXJKWWREHPRUHOLNHWKHSK\VLFDOVFLHQFHV
E 7KHRUHWLFDOFODULW\LVXQGHVLUDEOHLQHFRQRPLFV
F 7KHSK\VLFDOVFLHQFHVDUHZURQJWRHPSKDVLVHPDWKHPDWLFIRUPXODH
G 7KH PDWKHPDWLFDO HTXDWLRQV XVHG E\ HFRQRPLVWV GR QRW DFFXUDWHO\ GHVFULEH WKH UHDO
ZRUOG

:KLFKRIWKHIROORZLQJFODLPVLPSOLHGLQWKHSDUDJUDSKDERYH"
D (FRQRPLVWVVKRXOGVWRSXVLQJPDWKHPDWLFDOPRGHOV
E (TXDWLRQVGHVFULELQJLGHDOFRQGLWLRQVVKRXOGQRWEHPLVWDNHQIRUHTXDWLRQVGHVFULELQJ
UHDOLW\
F 7KHRUHWLFDOFODULW\VKRXOGQRWFRPHDWWKHH[SHQVHRIDFFXUDF\
ϵϬ

G 0RGHOVRIKXPDQEHKDYLRXUVKRXOGEHWUXHWRWKHFRPSOH[LW\RIKXPDQQDWXUH

:KLFKRIWKHIROORZLQJLI#ZRXOGPRVW:WKHDUJXPHQWRIWKHSDVVDJHDERYH"
D 7KHSK\VLFDOVFLHQFHVDUHWKHPVHOYHVUHGXFLQJWKHLUUHOLDQFHRQPDWKHPDWLFDOIRUPXODH
E 7KHUHDOZRUOGLQIDFWFORVHO\DSSUR[LPDWHVLGHDOWKHRUHWLFDOFRQGLWLRQV
F :HGRQRWDWSUHVHQWKDYHWKHPDWKHPDWLFDOH[SHUWLVHWRPRGHOWKHIXOOFRPSOH[LW\RIWKH
ZRUOGHFRQRP\
G $FDGHPLFHFRQRPLVWVQHHGWREHPRUHVHQVLWLYHWRKXPDQQDWXUH

3DVVDHIRUTXHVWLRQV
C5HOLJLRQVOLNHFDPHOFDUDYDQVVHHPWRDYRLGPRXQWDLQSDVVHV%XGGKLVPVSUHDGTXLFNO\
VRXWKIURP%XGGKD
VELUWKSODFHLQVRXWKHUQ1HSDODFURVVWKHIODW*DQJHWLFSODLQWR6UL
/DQND%XWLWWRRNDPLOOHQQLXPWRUHDFK&KLQD7KHUHOLJLRXVEHOWVWUHWFKHGHYHQWXDOO\
WR0RQJROLDDQG-DSDQEXWLQ$IJKDQLVWDQ%XGGKLVPILOOHGRQO\DQDUURZEHOWWKDWOHIW
SDJDQVDPRQJWKHYDOOH\VWRWKHHDVWDQGZHVWLQ.DLODVKDQG*KRU

:KLFKRIWKHIROORZLQJEHVWVXPPDULVHVWKHVXEMHFWRIWKLVSDUDJUDSK"
D 7KH$IJKDQSHRSOHZHUHKRVWLOHWR%XGGKLVP
E *HRJUDSK\KDVFRQVLGHUDEOHLPSDFWRQWKHVSUHDGRIUHOLJLRQV
F %XGGKLVPGRHVQRWIORXULVKLQPRXQWDLQRXVUHJLRQV
G 5HOLJLRQKDVDFRQVLGHUDEOHLPSDFWRQJHRJUDSK\

:KLFK RI WKH IROORZLQJ LI WUXH ZRXOG PRVW : WKH FRQFOXVLRQ WR WKH DERYH
DUJXPHQW"
D &KULVWLDQLW\WRRNVHYHUDOFHQWXULHVWRFURVVWKH$WODQWLF2FHDQWR$PHULFD
E 7KH+LQGXNXVKPRXQWDLQVPDGHQRGLIIHUHQFHWRWKHVSHHGZLWKZKLFK,VODPVSUHDG
F %XGGKLVPLVVWURQJHVWLQPRXQWDLQRXVUHJLRQV
G -DLQLVPLVOHVVSRSXODULQFROGFOLPDWHV
3DVVDJHIRUTXHVWLRQV

C)ULHQGVKLSZDVLQGHHGDYDOXHIRUWKHYLOODJHUVPRUHIRUPHQWKDQIRUZRPHQ7ZRJRRG
IULHQGV ZHUH VDLG WR EH COLNH EURWKHUV
OLWHUDOO\ COLNH HOGHU EURWKHU\RXQJHU EURWKHU

553,KHDUGWKLVH[SUHVVLRQVHYHUDOWLPHVDQGOFRXOGQRWKHOSUHFDOOLQJ
WKHVWDWHPHQWRIDQHOGHUO\(QJOLVKFROOHDJXHZKRKDGWROGPHWKDWKHDQGKLVEURWKHU
ZHUHYHU\FORVHDQGKDGZULWWHQWRHDFKRWKHUHYHU\ZHHN+HKDGDGGHGC:HDUHYHU\
JRRGIULHQGV
7KDWLVIULHQGVKLSFRQQRWHGLQWLPDF\LQ(QJODQGZKLOHLQ5DPSXUDDVLQ
UXUDO,QGLDHYHU\ZKHUHEURWKHUKRRGFRQYH\HGLQWLPDF\

:KLFK RI WKH IROORZLQJ EHVW VXPPDULVHV WKH FRQFOXVLRQ RI WKH DUJXPHQW RI WKLV
SDUDJUDSK"
D )ULHQGVKLSKDVJUHDWHUYDOXHIRUPHQWKDQIRUZRPHQ
E 3HRSOH LQ (QJODQG KDYH GLIIHUHQW DOWLWXGHV WR EURWKHUKRRG DQG IULHQGVKLS WKDQ
SHRSOHLQUXUDO,QGLD
F %URWKHUKRRGKDVJUHDWHUYDOXHLQUXUDO,QGLDWKDQLQ(QJODQGG)ULHQGVKLSKDV
JUHDWHUYDOXHLQ(QJODQGWKDQLQ,QGLD

:KLFKRIWKHIROORZLQJLIWUXHZRXOGGLUHFWO\FRQWUDGLFWWKHFRQFOXVLRQRIWKHDERYH
DUJXPHQW"
D 3HRSOHDUHOHVVOLNHO\WRKDYHODUJHIDPLOLHVLQ(QJODQG
E 3HRSOHLQ(QJODQGDUHQRORQJHUFORVHWRWKHLUIDPLO\PHPEHUV
ϵϭ

F 3HRSOHLQ(QJODQGGRQRWWKLQNWKDWIULHQGVKLSFRQQRWHVLQWLPDF\G3HRSOHLQ
UXUDO,QGLDWKLQNWKDWVLVWHUVFDQQRWEHLQWLPDWH

3DVVDHIRUJXHVWLRQV

¶$ODQJXDJHLVPRVWHDVLO\OHDPWZKHQLWLVLQWXQHZLWKWKHVRFLDOFRQWH[W7RWHDFKDQ
,QGLDQFKLOGLQ(QJOLVKDWWKHSULPDU\VWDJHVWUHQJWKHQVGLVWLQFWLRQVRIFODVVDQGVWDWXV
DQGZDUSV WKH PLQG )DLOXUH WRUHVRUW WR UHJLRQDO ODQJXDJHV LQ OLWHUDF\FDPSDLJQV DOVR
KDPSHUVWKHLUVXFFHVV

:KLFKRIWKHIROORZLQJEHVWVXPPDULVHVWKHDUJXPHQWRIWKHSDVVDJHDERYH"
D /HDUQLQJ(QJOLVKZDUSVWKHPLQG
E /DQJXDJHSROLF\VKRXOGEHGHYLVHGZLWKDQH\HWRVRFLDOFRQWH[W
F /LWHUDF\FDPSDLJQVLQ,QGLDKDYHIDLOHG
G (QJOLVKVKRXOGEHWDXJKWDWWKHVHFRQGDU\VFKRROOHYHO
:KLFK RI WKH IROORZLQJ FODLPV LI WUXH ZRXOG ZHDNHQ WKH DUJXPHQW LQ WKH SDVVDJH
DERYH"
D /LWHUDF\FDPSDLJQVDUHPRUHVXFFHVVIXOZKHQFRQGXFWHGLQ(QJOLVK
E /HDUQLQJ(QJOLVKDWDQHDUO\DJHKDVEHHQIRXQGWRZHDNHQFODVVGLVWLQFWLRQV
F &KLOGUHQZKROHDUQ(QJOLVKDWWKHSULPDU\VFKRROVWDJHKDYHEHHQIRXQGWRVKRZ
JUHDWHU LQWHOOHFWXDO DELOLW\ WKDQ WKRVH ZKR WHDP (QJOLVK RQO\ DW WKH VHFRQGDU\
OHYHO
G $OORIWKHDERYH

3DVVDHHIRUTXHVWLRQV

C7KHWULEHVVKRXOGGHYHORSWKHLURZQFXOWXUHDQGPDNHWKHLUFRQWULEXWLRQWRWKHFXOWXUDO
ULFKQHVVRIWKHFRXQWU\,WLVXQQHFHVVDU\WRFDXVHWKHPWRFKDQJHWKHLUFXVWRPVKDELWV
RUGLYHUVLRQVVRIDUDVWRPDNHWKHPVHOYHVLQGLVWLQJXLVKDEOHOLRPRWKHUFODVVHV7RGRVR
ZRXOGEHWRUREUXUDODQGSDVWRUDOOLIHRILWVFRORXUDQGVWLPXODWLQJGLYHUVLW\

:KLFKRIWKHIROORZLQJFRQFOXVLRQVLVLPSOLHGE\WKHSDVVDJHDERYH
"
D ,WLVJRRGIRU,QGLD
VWULEDOSHRSOHWRGHYHORSWKHLUFXOWXUH
E 7ULEDOFXVWRPVVKRXOGQRWEHDOORZHGWRFKDQJHLQDQ\UHVSHFW
F )RUFLQJWULEDOSHRSOHWRFKDQJHWKHLUFXVWRPVUHGXFHVWKHGLYHUVLW\RIUXUDOOLIHG7ULEDO
FXOWXUHLVSDUWRIWKHFXOWXUDOULFKQHVVRI,QGLD

:KLFKRIWKHIROORZLQJFODLPVUXQVGLUHFWO\FRXQWHU>RWKHVSLULWRIWKHSDVVDJHDERYH"
D 7ULEDOSHRSOHVKRXOGEHDEOHWRGHFLGHZKDWHOHPHQWVRIWKHPRGHPZRUOGWRDGRSW
E 7KHJRYHPPHQWVKRXOGPDNHPRGHPVFLHQFHDQGPHGLFLQHDYDLODEOHWRWULEDOSHRSOH
F 7ULEDO SHRSOH VKRXOG QRW EH VXEMHFWHG WR DQ\ FRHUFLRQ WR FRQIRUP WR QRQWULEDO
FXOWXUDOQRUPVDVORQJDVWKH\GRQRWYLRODWHWKHODZ
G 7KHWULEDOVVKRXOGDVVLPLODWHDVIDUDVSRVVLEOHLQWRQRQWULEDOFXOWXUHDVDFRQGLWLRQ
RIIXOOFLWL]HQVKLS

:KLFKRIWKHIROORZLQJLVDQDVVXPSWLRQUHTXLUHGE\WKHDERYHDUJXPHQW"
D &RORXUDQGGLYHUVLW\DUHGHVLUDEOHWKLQJV
E 7ULEDOSHRSOHDUHFDSDEOHRIFRQWULEXWLQJWR,QGLD
VFXOWXUDOGLYHUVLW\
F &KDQJLQJWULEDOFXVWRPVLVDQHFHVVDU\FRQGLWLRQRIPDNLQJPRGHUQPHGLFLQHDYDLODEOH
WRWULEDOSHRSOH
ϵϮ

G 5XUDOOLIHLVSUHVHQWO\IXOORIFRORXUDQGGLYHUVLW\

3DVVDJHIRUTXHVWLRQV

C,QGLD LV WKH RQO\ FRXQWU\ LQ WKH ZRUOG ZKHUH LQ WKH 6WDWHV ZKLFK DUH JRYHUQHG E\ WKH
&RPPXQLVWSDUW\KXPDQULJKWVDUHIXOO\UHVSHFWHGDQGWKDWLVRQO\EHFDXVHWKH%LOORI
5LJKWV LV ILUPO\ HQWUHQFKHG LQ RXU QDWLRQDO &RQVWLWXWLRQ :H FDQ SURXGO\ VD\ WKDW RXU
&RQVWLWXWLRQJDYHXVDIO\LQJVWDUWDQGHTXLSSHGXVDGHTXDWHO\WRPHHWWKHFKDOOHQJHVRI
WKHIXWXUH

:KLFKRIWKHIROORZLQJFRQFOXVLRQVLVLPSOLHGE\WKHSDVVDJHDERYH"
D &RPPXQLVWVWDWHVRIWHQGRQRWUHVSHFWKXPDQULJKWV
E &RPPXQLVWVWDWHVQHYHUUHVSHFWKXPDQULJKWV
F 7KHHQWUHQFKPHQWRIWKH%LOORI5LJKWVLVZKDWHQVXUHVWKDWHYHQ&RPPXQLVWJRYHPHG
VWDWHVUHVSHFWKXPDQULJKWV
G 7KH,QGLDQ&RQVWLWXWLRQSUHSDUHG,QGLDIRUWKHFKDOOHQJHVRILQGHSHQGHQFH

:KLFKRIWKHIROORZLQJLIWUXHZRXOG:WKHDERYHDUJXPHQW"
D &RPPXQLVW JRYHUQPHQWV DUH PRWLYDWHG WR UHVSHFW KXPDQ ULJKWV RXW RI &RPPXQLVW
SULQFLSOHVQRW&RQVWLWXWLRQDORQHV
E 7KH&RQVWLWXWLRQRI,QGLDLVLWVHOIV\PSDWKHWLFWR&RPPXQLVWSULQFLSOHV
F +XPDQULJKWVQHHGWREHHQIRUFHDEOHWRKDYHDQ\PHDQLQJ
G &RXQWULHVZLWKRXWDVWURQJFXOWXUHRIKXPDQULJKWVDUHSURQHWRRSSUHVVLQJPLQRULWLHV

3DVVDJHIRUTXHVWLRQV
3RYHUW\LVPRUHUHVWULFWLYHDQGOLPLWLQJWKDQDQ\WKLQJHOVH,WSRYHUW\DQGORZVWDQGDUGV
FRQWLQXHWKHQGHPRFUDF\IRUDOOLWVILQHLQVWLWXWLRQVDQGLGHDOVFHDVHVWREHDOLEHUDWLQJ
IRUFH,WPXVWWKHUHIRUHDLPFRQWLQXRXVO\DWWKHHUDGLFDWLRQRISRYHUW\DQGLWVFRPSDQLRQ
XQHPSOR\PHQW ,Q RWKHU ZRUGV SROLWLFDO GHPRFUDF\ LV QRW HQRXJK ,W PXVW GHYHORS LQWR
HFRQRPLFGHPRFUDF\DOVR

:KLFKRIWKHIROORZLQJLVLPSOLHGE\WKHDERYHSDVVDJH"
D 'HPRFUDF\ KDV FHDVHG WR EH D OLEHUDWLQJ IRUFH E
'HPRFUDFLHVVKRXOGDLPWRHOLPLQDWHSRYHUW\
F 3RYHUW\DQGXQHPSOR\PHQWJRKDQGLQKDQG
G 3ROLWLFDOGHPRFUDF\VKRXOGGHYHORSLQWRHFRQRPLFGHPRFUDF\

:KLFKRIWKHIROORZLQJYLHZVLIWUXHZRXOG:WKHDUJXPHQWRIWKHDERYHSDVVDJH"
D 3ROLWLFDOGHPRFUDF\LVLQVHSDUDEOHIURPHFRQRPLFGHPRFUDF\
E 3RYHUW\GRHVQRWLQIDFWUHVWULFWIUHHGRP
F 'HPRFUDF\IORXULVKHVPRVWLQSRRUVRFLHWLHV
G (FRQRPLFGHPRFUDF\LVDQHFHVVDU\FRQGLWLRQIRUWKHHOLPLQDWLRQRIXQHPSOR\PHQW

/(*$/$37,78'(

,QVWUXFWLRQVWR&DQGLGDWHV
ϵϯ

7KLVVHFWLRQFRQVLVWVRIWHQSUREOHPVZLWKTXHVWLRQVLQWRWDO(DFKSUREOHPFRQVLVWV

RI D VHW RI UXOHV DQG IDFWV $SSO\ WKH VSHFLILHG UXOHV WR WKH VHW RI IDFWV DQG DQVZHU WKH
TXHVWLRQV
,QDQVZHULQJWKHIROORZLQJTXHVWLRQV\RXVKRXOGQRWUHO\RQDQ\UXOHVH[FHSWWKHUXOHV
WKDWDUHVXSSOLHGIRUHYHU\SUREOHP)XUWKHU\RXVKRXOGQRWDVVXPHDQ\IDFWRWKHUWKDQ
WKRVHVWDWHGLQWKHSUREOHP7KHDLPLVWRWHVW\RXUDELOLW\WRSURSHUO\DSSO\DUXOHWRD
JLYHQVHWRIIDFWVHYHQZKHQWKHUHVXOWLVDEVXUGRUXQDFFHSWDEOHIRUDQ\RWKHUUHDVRQ,W
LVQRWWKHDLPWRWHVWDQ\NQRZOHGJHRIODZ\RXPD\DOUHDG\SRVVHVV

3UREOHP)RUTXHVWLRQVWR
5XOHV
$ 7KH IXQGDPHQWDO ULJKW WR IUHHGRP RI DVVRFLDWLRQ LQFOXGHV WKH ULJKW WR IRUP DQ
DVVRFLDWLRQDVZHOODVQRWMRLQDQDVVRFLDWLRQ
% 7KHIXQGDPHQWDOULJKWWRIUHHGRPRIDVVRFLDWLRQDOVRLQFOXGHVWKHIUHHGRPWRGHFLGH
ZLWKZKRPWRDVVRFLDWH
& 7KHIXQGDPHQWDOULJKWWRIUHHGRPRIDVVRFLDWLRQGRHVQRWH[WHQGWRWKHULJKWWRUHDOLVH
WKHREMHFWLYHVRIIRUPLQJWKHDVVRFLDWLRQ
' )XQGDPHQWDOULJKWVDUHDSSOLFDEOHRQO\WRODZVPDGHE\RUDGPLQLVWUDWLYHDFWLRQVRI
WKH6WDWHDQGGRQRWDSSO\WRDFWLRQVRISULYDWHSHUVRQV
( $Q\ ODZ LQ FRQWUDYHQWLRQ RI IXQGDPHQWDO ULJKWV LV XQFRQVWLWXWLRQDO DQG WKHUHIRUH
FDQQRWELQGDQ\SHUVRQ
)DFWV
*DMRGKDU 3KDUPDFHXWLFDOV D SULYDWH FRPSDQ\ RIIHUHG DQ HPSOR\PHQW FRQWUDFW RI WZR
\HDUVWR6\HG0RQLWXO$ODP2QHRIWKHFODXVHVLQWKHHPSOR\PHQWFRQWUDFWSURYLGHGWKDW
6\HG0RQLUXO$ODPPXVWMRLQ*DMRGKDU0D]GRRU6DQJK*06RQHRIWKHWUDGHXQLRQV
DFWLYHLQ*DMRGKDU3KDUPDFHXWLFDOV

'HFLGHZKLFKRIWKHIROORZLQJSURSRVLWLRQVFDQEHPRVWUHDVRQDEO\LQIHUUHGWKURXJK
WKHDSSOLFDWLRQRIWKHVWDWHGOHJDOUXOHVWRWKHIDFWVRIWKLVFDVH
D 7KHHPSOR\PHQWFRQWUDFWRIIHUHGWR0RQLWXO$ODPWRMRLQ*06LVOHJDODVLWGRHVQRW
UHVWULFWKLVIUHHGRPQRWWRMRLQDQ\DVVRFLDWLRQ
E 7KHFRQGLWLRQUHTXLULQJ0RQLUXO$ODPWRMRLQ*06FDQQRWELQGKLPDVLWLPSLQJHV
RQKLVIUHHGRPQRWWRMRLQDQ\DVVRFLDWLRQ
F 6\HG 0RQLUXO $ODP FDQQRW FODLP D IXQGDPHQWDO ULJKW WR IUHHGRP RI DVVRFLDWLRQ
DJDLQVW*DMRGKDU3KDUPDFHXWLFDOVDQGWKHUHIRUHWKHFRQWUDFWZRXOGELQGKLPHYHQWKRXJK
KLVIUHHGRPRIDVVRFLDWLRQLVUHVWULFWHG
G 7KH HPSOR\PHQW FRQWUDFW LQIULQJHV 6\HG 0RQLUXO $ODP
V IUHHGRP WR GHFLGH ZLWK
ZKRPWRDVVRFLDWHDQGWKHUHIRUHLVOHJDOO\QRWHQIRUFHDEOH

,I3DUOLDPHQWHQDFWVDODZZKLFKUHTXLUHVHYHU\HPSOR\HHWRMRLQWKHODUJHVWWUDGH
XQLRQLQWKHLUZRUNSODFHPDQGDWLQJ6\HG0RQLUXO$ODPWRMRLQ*06WKHQD6XFKDODZ
ZRXOGPHUHO\JRYHPSULYDWHDFWLRQWRZKLFKIXQGDPHQWDOULJKWVGRQRWDSSO\
E 6XFKDODZZRXOGQRWFXUWDLODQ\LQGLYLGXDO
VULJKWWRIUHHGRPRIDVVRFLDWLRQ
F 1HLWKHUWKHHPSOR\PHQWFRQWUDFWQRUWKHODZRIWKHSDUOLDPHQWZRXOGEHHQIRUFHDEOHDV
WKH\ZRXOGFXUWDLOWKHIUHHGRPRIDVVRFLDWLRQ
G 7KHODZRISDUOLDPHQWZRXOGYLRODWHDQLQGLYLGXDO
VIUHHGRPQRWWRMRLQDQ\DVVRFLDWLRQ
DQGWKHUHIRUHEHXQFRQVWLWXWLRQDO

,I3DUOLDPHQWHQDFWVDODZWKDWUHTXLUHVDWUDGHXQLRQWRRSHQLWVPHPEHUVKLSWRDOO
WKHHPSOR\HHVWKHQ
ϵϰ

D6XFKDODZZRXOGQRWLQIULQJHDQ\IXQGDPHQWDOULJKWWRIUHHGRPRIDVVRFLDWLRQE7KH
ODZRIWKHSDUOLDPHQWZRXOGFXUWDLODQLQGLYLGXDO
VULJKWQRWWRMRLQDQ\DVVRFLDWLRQ
F 6XFKDODZZRXOGFXUWDLOWKHXQLRQPHPEHUV
ULJKWWRGHFLGHZLWKZKRPWKH\ZRXOG
OLNHWRDVVRFLDWH
G 6XFK D ODZ ZRXOG UHQGHU WKH HPSOR\PHQW FRQWUDFW RIIHUHG E\ *DMRGKDU
3KDUPDFHXWLFDOVWR6\HG0RQLUXO$ODPXQHQIRUFHDEOH

,I*DMRGKDU3KDUPDFHXWLFDOVHQWHULQWRDQDJUHHPHQWZLWK*06ZKHUHLQWKHIRUPHU
DJUHHVWRKLUHRQO\WKHH[LVWLQJPHPEHUVRI*06DVHPSOR\HHVWKHQD7KHDJUHHPHQW
ZRXOGEHLOOHJDODVLWZRXOGFXUWDLOWKHXQLRQPHPEHUV
ULJKWWRGHFLGHZLWKZKRPWKH\
ZRXOGOLNHWRDVVRFLDWH
E 6XFKDQDJUHHPHQWZRXOGLQIULQJHWKHXQLRQ
VULJKWWRGHFLGHZLWKZKRPWRDVVRFLDWH
DQGWKHUHIRUHLVOHJDOO\QRWHQIRUFHDEOH
F 7KH DJUHHPHQW ZRXOGQRW EHHQIRUFHDEOH DV LW ZRXOG LQIULQJH XSRQ WKHHPSOR\HU
V
ULJKWQRWWRMRLQDQDVVRFLDWLRQ
G 7KH FRQVWLWXWLRQDOLW\ RI WKLV DJUHHPHQW FDQQRW EH FRQWHVWHG RQ JURXQGV RI
FRQWUDYHQWLRQRIIXQGDPHQWDOULJKWVDVVXFKULJKWVDUHQRWDSSOLFDEOHWRSULYDWHSHUVRQV

,I 3DUOLDPHQW HQDFWV D OHJLVODWLRQ SURKLELWLQJ VWULNHV E\ WUDGH XQLRQV RI HPSOR\HHV
HQJDJHGLQSKDUPDFHXWLFDOLQGXVWU\WKHQ
D 7KHOHJLVODWLRQZRXOGQRWYLRODWHWKHULJKWWRIUHHGRPRIDVVRFLDWLRQ
E 7KH OHJLVODWLRQ ZRXOG FXUWDLO WKH ULJKW RI WUDGH XQLRQV WR VWULNH DQG WKHUHIRUH YLRODWH
IUHHGRPRIDVVRFLDWLRQ
F 6LQFHVWULNHLVRQO\RQHRIWKHREMHFWLYHVZLWKZKLFKXWUDGHXQLRQLVIRQQHGULJKWWR
VWULNHLVQRWSURWHFWHGE\WKHULJKWWRIUHHGRPRIDVVRFLDWLRQ
G 1RQHRIWKHDERYH

5XOH:KRHYHUILQGVDQXQDWWHQGHGREMHFWFDQNHHSLWXQOHVVWKHWUXHRZQHUFODLPVWKDW
REMHFW7KLVGRHVQRWDIIHFWWKHSURSHUW\RZQHU
VULJKWWRWKHRZQHUVKLSRIWKHSURSHUW\RQ
ZKLFLWWKHREMHFWLVIRXQG7KHULJKWWRRZQHUVKLSRIDSURSHUW\GRHVQRWLQFOXGHWKHULJKW
WRRZQHUVKLSRIXQDWWHQGHGREMHFWVRQWKDWSURSHUW\

)DFWV(OL]DEHWKLVWKH&(2RIDJOREDOPDQDJHPHQWVHUYLFHVFRPSDQ\LQ&KFQQDLDQGLV
RQKHUZD\WR5DQFKLWRGHOLYHUWKHFRQYRFDWLRQDGGUHVVDW,QGLD
VOHDGLQJEXVLQHVVVFKRRO
RQWKHRXWVNLUWVRI5DQFKL)O\LQJEXVLQHVVFODVVRQ'ROSKLQ$LUOLQHVVKHLVHQWLWOHGWR
XVHWKHORXQJHRZQHGE\WKHDLUOLQHLQ&KHQQDL$LUSRUWZKLOHZDLWLQJIRUKHUIOLJKW6KH
ILQGV D GLDPRQG HDUULQJ RQ WKH IORRU RI WKH ORXQJH DQG JLYHV LW WR WKH VWDII RI 'ROSKLQ
$LUOLQHV H[SUHVVO\ VWDWLQJ WKDW LQ WKH HYHQW RI QRERG\ FODLPLQJ WKH HDUULQJ ZLWKLQ VL[
PRQWKV VKH ZRXOG FODLP LW EDFN 7KH DLUOLQH VHOOV WKH HDUULQJ DIWHU HLJKW PRQWKV DQG
(OL]DEHWK ILOHV D FDVH WR UHFRYHU WKH YDOXH RI WKH HDUULQJ IURP WKH DLUOLQH ZKHQ VKH LV
LQIRUPHGDERXWLWVVDOH

$VDMXGJH\RXZRXOGRUGHUWKDW
D (OL]DEHWKLVQRWHQWLWOHGWRFRPSHQVDWLRQEHFDXVHWKHHDUULQJZDVIRXQGRQWKH
SURSHUW\RIWKHDLUOLQHDQGWKHUHIRUHWKHDLUOLQHLVHQWLWOHGWRVHOOLW
E 7KHDLUOLQHPXVWFRPSHQVDWH(OL]DEHWKEHFDXVHRZQLQJWKHORXQJHGRHVQRWJLYH
WKHDLUOLQHWKHULJKWRYHUDOOWKLQJVWKDWPLJKWEHIRXQGRQLW
F 7KHDLUOLQHPXVWFRPSHQVDWH(OL]DEHWKEHFDXVHZKLOHDFFHSWLQJWKHHDUULQJIURP
(OL]DEHWKWKH\KDGDJUHHGWRUHWXUQLWLIQRERG\FODLPHGLWZLWKLQVL[PRQWKV
ϵϱ

G (OL]DEHWK LVQRWHQWLWOHG WR FRPSHQVDWLRQEHFDXVH VKHGLGQRW FODLP WKHHDUULQJ

DIWHU WKH H[SLU\ RI VL[ PRQWKV DQG WKH DLUOLQH ZDLWHG IRU D FRXSOH PRUH PRQWKV
EHIRUHVHOOLQJLW

$VVXPH QRZ WKDW (OL]DEHWK ZDV RQO\ DQ HFRQRP\ FODVV SDVVHQJHU DQG ZDV QRW
HQWLWOHGWRXVHWKHDLUOLQH
VORXQJH+RZHYHUVKHPDQDJHVWRJDLQHQWU\DQGILQGV
WKH HDUULQJ LQ WKH ORXQJH 7KH UHVW RI WKH DERYH IDFWV UHPDLQ WKH VDPH :LOO KHU
LOOHJDO HQWU\ LQWR WKH /RXQJH DIIHFW (OL]DEHWK
V ULJKW WR NHHS WKH HDUULQJ RU EH
FRPSHQVDWHGIRULWVYDOXH"
D <HV WKH DLUOLQH FODLPV WKDW (OL]DEHWK
V HQWU\ LQWR WKH ORXQJH ZDV LOOHJDO DQG
WKHUHIRUHVKHKDVQRULJKWRYHUDQ\WKLQJVKHIRXQGWKHUH
E 1REHFDXVH(OL]DEHWK
VFODVVRIWUDYHOKDVQREHDULQJRQWKH2XWFRPHLQWKLVFDVH
F &DQQRWEHGHWHUPLQHGDVZHQHHGWRNQRZKRZ(OL]DEHWKZDVDEOHWRDFFHVVWKH
DLUOLQH
VORXQJH
G 1RQHRIWKHDERYH

7R WKH RULJLQDO IDFW VFHQDULR WKH IROORZLQJ IDFW LV DGGHG ,Q WKH ORXQJH WKHUH DUH
QXPHURXVVLJQERDUGVZKLFKSURFODLP
$Q\XQDWWHQGHGLWHPZLOOEHFRQILVFDWHGE\
'ROSKLQ$LUOLQHV
,QWKLVFDVH\RXZRXOG
D 2UGHU WKH DLUOLQH WR SD\ FRPSHQVDWLRQ WR (OL]DEHWK EHFDXVH WKH ERDUG LQ WKH
ORXQJHFDQQRWJUDQWSURSHUW\ULJKWVRYHUXQDWWHQGHGREMHFWVWRWKHDLUOLQHE'HQ\
(OL]DEHWKFRPSHQVDWLRQEHFDXVHWKHVLJQERDUGPDNHVLWHYLGHQWWKDWWKHDLUOLQH
DV RZQHU RI WKH ORXQJH LV H[HUFLVLQJ DOO ULJKWV RYHU DOO XQDWWHQGHG LWHPV LQ WKH
ORXQJHDQGWKHHDUULQJLVRQHVXFKLWHP
F 'HQ\ (OL]DEHWK FRPSHQVDWLRQ EHFDXVH VKH NQHZ DQ\ XQDWWHQGHG LWHP
EHORQJHGWRWKHDLUOLQH
G 2UGHU WKH DLUOLQH WR SD\ FRPSHQVDWLRQ WR (OL]DEHWK EHFDXVH WKH SURSHUW\
ULJKWV RI WKH DLUOLQH DUH UHOHYDQW RQO\ LI WKH LWHP LV XQDWWHQGHG 7KH PRPHQW
(OL]DEHWKIRXQGWKHHDUULQJLWEHORQJHGWRKHU
3UREOHP)RU4XHVWLRQVWR

5XOHV$7KH6WDWHVKDOOQRWGLVFULPLQDWHHLWKHUGLUHFWO\RULQGLUHFWO\RQWKHJURXQGVRI
VH[UDFHUHOLJLRQFDVWHFUHHGVH[XDORULHQWDWLRQPDULWDOVWDWXVGLVDELOLW\SUHJQDQF\
SODFHRIELUWKJHQGHURULHQWDWLRQRUDQ\RWKHUVWDWXV

5XOH%'LUHFWGLVFULPLQDWLRQRFFXUVZKHQIRUDUHDVRQUHODWHGWRRQHRUPRUHSURKLELWHG
JURXQGVDSHUVRQRUJURXSRISHUVRQVLVWUHDWHGOHVVIDYRXUDEO\WKDQDQRWKHUSHUVRQRU
DQRWKHUJURXSRISHUVRQVLQDFRPSDUDEOHVLWXDWLRQ

5XOH & ,QGLUHFW GLVFULPLQDWLRQ RFFXUV ZKHQ D SURYLVLRQ FULWHULRQ RU SUDFWLFH ZKLFK LV
QHXWUDO RQ WKH IDFH RI LW ZRXOG KDYH WKH HIIHFW RI SXWWLQJ SHUVRQV KDYLQJ D VWDWXV RU D
FKDUDFWHULVWLF DVVRFLDWHG ZLWK RQH RU PRUH SURKLELWHG JURXQGV DW D SDUWLFXODU
GLVDGYDQWDJHFRPSDUHGZLWKRWKHUSHUVRQV

5XOH''LVFULPLQDWLRQVKDOOEHMXVWLILHGZKHQVXFKGLVFULPLQDWLRQLVDEVROXWHO\QHFHVVDU\
LQ RUGHU WR SURPRWH WKH ZHOOEHLQJ RI GLVDGYDQWDJHG JURXSV VXFK DV ZRPHQ GDOLWV
UHOLJLRXVPLQRULWLHVVH[XDOPLQRULWLHVRUGLVDEOHGSHUVRQV

)DFWV
ϵϲ

2Q2FWREHUWKH*RYHUQRURIWKHVWDWHRI%LKDURUGHUHGWKHUHOHDVHRIDOOZRPHQ
SULVRQHUV ZKR ZHUH VHUYLQJ VHQWHQFH RI OHVV WKDQ RQH \HDU LPSULVRQPHQW WR PDUN WKH
RFFDVLRQRI0DKDWPD*DQGKL
VELUWKGD\

:KLFKRIWKHIROORZLQJLVFRUUHFWZLWKUHVSHFWWRWKH*RYHUQRU
VRUGHU"
D ,WGLVFULPLQDWHVGLUHFWO\RQWKHJURXQGRIVH[
E ,WGLVFULPLQDWHVLQGLUHFWO\RQWKHJURXQGRIVH[
F ,WGRHVQRWGLVFULPLQDWHRLOWKHJURXQGRIVH[
G ,WGLVFULPLQDWHVGLUHFWO\DVZHOODVLQGLUHFWO\RQWLOHJURXQGRIVH[

,VWKHJRYFUQXU
VRLGHUMXVWLIOLHGXQGHU5XOH'"
D <HVEHFDXVHLWLVIRUWKHZHOOEHLQJRIZRPHQSULVRQHUV
E 1REHFDXVHLWLVQRWDEVROXWHO\QHFHVVDU\IRUWKHZHOOEHLQJRIYRPHQSULVRQHUV
F 1REHFDXVHLWGRHVQRWSURPRWHWKHZHOOEHLQJRIZRPHQSULVRQHUVRUWKHVRFLHW\
G 1RQHRIWKHDERYH

$VVXPH WKDW WKH *RYHUQRU DOVR PDGH D VHFRQG RUGHU UHTXLULQJ WKH UHOHDVH RI DOO
SHUVRQVXQGHUWKHDJH!%;DQGRYHUWKHDJHRI+;ZKRZHUHVHUYLQJDVHQWHQFHRIOHVV
WKDQRQH\HDU
VLPSULVRQPHQW8QGHUWKH5XOHVWKLVRUGHULV
D 'LUHFWO\GLVFULPLQDWRU\
E ,QGLUHFWO\GLVFULPLQDWRU\
F 1RWGLVFULPLQDWRU\
G 'LVFULPLQDWRU\EXWMXVWLILDEOH

$VVXPH IXUWKHU WKDW WKH JRYHUQPHQW PDGH D WKLUG RUGHU UHOHDVLQJ DOO JUDGXDWH
SULVRQHUVZKRDUHVHUYLQJDVHQWHQFHRIOHVVWKDQRQH\HDU
VLPSULVRQPHQW:KLFKRI
WKH IROORZLQJ VWDWLVWLFV ZRXOG KDYH WR EH WUXH IRU WKLV RUGHU WR EH LQGLUHFWO\
GLVFULPLQDWRU\"
D 2QO\RIWKHSULVRQSRSXODWLRQLQ%LKDUKDYHDJUDGXDWLRQGHJUHH
E 2IWKHJUDGXDWHSULVRQHUV'<=EHORQJWRXSSHUFDVWHV
F 2QO\%;=ZRPHQLQ%LKDUJHWDJUDGXDWLRQGHJUHH
G $OORIWKHDERYH
5XOH(
$GLVFULPLQDWRU\DFWVKDOOEHMXVWLILHGLILWVHIIHFWLVWRSURPRWHWKHZHOOEHLQJRI
GLVDGYDQWDJHGJURXSVVXFKDVZRPHQGDOLWVUHOLJLRXVPLQRULWLHVVH[XDOPLQRULWLHVRU
GLVDEOHGSHUVRQV

:RXOGWKHILUVW2UGHURIUHOHDVHRIDOOZRPHQSULVRQHUVEHMXVWLILHGXQGHU5XOH("D
<HVEHFDXVHLWSURPRWHVWKHZHOOEHLQJ!ZRPHQ
E 1R EHFDXVH LW GRHV QRW SURPRWH WKH ZHOOEHLQJ RI ZRPHQ SULVRQHUV F 1R
EHFDXVHLWGRHVQRWSURPRWHWKHZHOOEHLQJRIDOOGLVDGYDQWDJHGJURXSVHTXDOO\
G1RQHRIWKHDERYH

3UREOHP)RUTXHVWLRQVWR9)>5XOHV
$ $PLQRULVDSHUVRQZKRLVEHORZWKHDJHRIHLJKWHHQ+RZHYHUZKHUHDJXDUGLDQ
DGPLQLVWHUVWKHPLQRU
VSURSHUW\WKHDJHRIPDMRULW\LVWZHQW\RQH
% $PLQRULVQRWSHUPLWWHGE\ODZWRHQWHULQWRDFRQWUDFW+HQFHZKHUHDPLQRU
HQWHUVLQWRDFRQWUDFWZLWKDPDMRUSHUVRQWKHFRQWUDFWLVQRWHQIRUFHDEOH7KLV
HIIHFWLYHO\PHDQVWKDWQHLWKHUWKHPLQRUQRUWKHRWKHUSDUW\FDQPDNHDQ\FODLP
RQWKHEDVLVRIWKHFRQWUDFW
& ,QDFRQWUDFWZLWKDPLQRULIWKHRWKHUSDUW\KDQGVRYHUDQ\PRQH\RUFRQIHUVDQ\
RWKHU EHQHILW RQ WKH PLQRU WKH VDPH VKDOO QRW EH UHFRYHUDEOH IURP WKH PLQRU
XQOHVVWKHRWKHUSDUW\ZDVGHFHLYHGE\WKHPLQRUORKDQGRYHUPRQH\RUDQ\RWKHU
ϵϳ

EHQHILW7KHRWKHUSDUW\ZLOOKDYHWRVKRZWKDWKHPLQRUPLVUHSUHVHQWHGKHUDJH
KHZDVLJQRUDQWDERXWWKHDJHRIWKHPLQRUDQGWKDWKHKDQGHGRYHUWKHEHQHILW
RQWKHEDVLVRIVXFKUHSUHVHQWDWLRQ
)DFWV
$MD\ FRQYLQFHV %DQGLWD D JLUO DJHG ,5 WKDW VKH VKRXOG VHOO KHU ODQG WR KLP %DQGLWD
V
PRWKHU&KDDUXLVKHUJXDUGLDQ1RQHWKHOHVV%DQGLWDZLWKRXWWKHSHUPLVVLRQRI&KDDUX
VHOOVWKHODQGWR$MD\IRUDWRWDOVXPRIUXSHHVILIW\ODNKSDLGLQIXOODQGILQDOVHWWOHPHQW
RI WKH SULFH &KDDUX FKDOOHQJHV WKLV WUDQVDFWLRQ FODLPLQJ WKDW %DQGLWD LV D PLQRU DQG
KHQFH WKH SRVVHVVLRQ RI WKH ODQG VKDOO QRW EH JLYHQ WR $MD\ 7KXV $MD\ LV LQ D GLIILFXOW
VLWXDWLRQDQGKDVQRLGHDKRZWRUHFRYHUKLVPRQH\IURP%DQGLWD

&KDDUXLVMXVWLILHGLQFKDOOHQJLQJWKHVDOHWUDQVDFWLRQEHFDXVH
D %DQGLWD LV RI XQVRXQG PLQG DQG LV QRW LQ D SRVLWLRQ WR PDNH UDWLRQDO
GHFLVLRQV
E 7KRXJK%DQGLWDLVHLJKWHHQ\HDUROGVKHZLOOEHWUHDWHGDVDPLQRUDV&KDDUX
LVKHUJXDUGLDQ
F 7KRXJK %DQGLWD LV HLJKWHHQ \HDU ROG VKH FDQQRW VHOO WKH ODQG ZLWKRXW WKH
SHUPLVVLRQRIKHUPRWKHU
G 7KRXJK%DQGLWDLVHLJKWHHQ\HDUROGVKHVKRXOGQRWEHWUHDWHGOLNHDSHUVRQ
ZKRKDVDWWDLQHGWKHDJHRIPDMRULW\

$MD\FDQEHDOORZHGWRUHFRYHUWKHPRQH\RQO\LIKHFDQVKRZWKDW
D +HZDVGHFHLYHGE\%DQGLWDZKRPLVUHSUHVHQWHGKHUDJH
E +HKRQHVWO\EHOLHYHGWKDW%DQGLWDZDVHPSRZHUHGXQGHUWKHODZWRVHOOWKHODQG
F +HZDVDQKRQHVWSHUVRQZKRKDGSDLGWKHIXOOSULFHRIWKHODQGWR%DQGLWD
G %RWKDDQGE

,QRUGHUWRGHIHQGWKHVDOH%DQGLWDZLOOQHHGWRVKRZWKDWD%DQGLWDKDVDWWDLQHG
WKHDJHRIPDMRULW\
E %DQGLWD LV PDWXUH HQRXJK WR PDNH UDWLRQDO GHFLVLRQV UHJDUGLQJ KHU RZQ
DIIDLUV
F 7KH VDOH WUDQVDFWLRQ ZDV EHQHILFLDO WR KHU LQWHUHVW DQG ZLOO HQKDQFH KHU
ILQDQFLDOVWDWXVG1RQHRIWKHDERYH

:KLFKRIWKHIROORZLQJLVFRUUHFW"
D $MD\VKRXOGEHDOORZHGWRUHFRYHUWKHPRQH\EHFDXVHHYHQWKRXJKWKHUHLV
QRFRQWUDFW%DQGLWDDQG&KDDUXVKRXOGQRWEHDOORZHGWRXQMXVWO\EHQHILWIURP
$MD\
VPRQH\
E $MD\ VKRXOG EH DOORZHG WKH SRVVHVVLRQ RI WKH ODQG EHFDXVH &KDDUX FDQ
DOZD\VGHFLGHWRDSSURYHWKHWUDQVDFWLRQEHWZHHQ$MD\DQG%DQGLWDF$MD\VKRXOG
QRWEHDOORZHGWRUHFRYHUEHFDXVHKHLQGXFHG%DQGLWDDPLQRUWRVHOOWKHODQG
G1RQHRIWKHDERYH

:KLFKRIWKHIROORZLQJLVFRUUHFW"
D ,I $MD\ LV DOORZHG WR UHFRYHU WKH PRQH\ WKDW ZLOO GHIHDW WKH ODZ IUDPHG IRU
SURWHFWLQJWKHPLQRUVDJDLQVWIUDXGXOHQWSHUVRQV
E ,I$MD\LVQRWDOORZHGWRUHFRYHUWKDWZLOOFDXVHKLPLQMXVWLFHDVKHKDVQRWSDLG
RLO
WKHHQWLUHVDOHSULFH
F ,I$MD\LVDOORZHGWRUHFRYHU&KDDUXZLOOEHQHILWIURPERWKWKHPRQH\DQGWKH
ODQG
ϵϴ

G 1RQHRIWKHDERYH

5XOHV
$ 7KHDFWRIXVLQJWKUHDWVWRIRUFHDQRWKHUSHUVRQWRHQWHULQWRDFRQWUDFWLVFDOOHG
FRHUFLRQ
% 7KHDFWRIXVLQJLQIOXHQFHRQDQRWKHUDQGWDNLQJXQGXHDGYDQWDJHRIWKDWSHUVRQ
LVFDOOHGXQGXHLQIOXHQFH
& ,Q RUGHU WR SURYH FRHUFLRQ WKH H[LVWHQFH RI WKH XVH RI WKUHDW LQ DQ\ IRUP DQG
PDQQHULVQHFHVVDU\,IFRHUFLRQLVSURYHGWKHSHUVRQZKRKDVEHHQVRWKUHDWHQHG
FDQUHIXVHWRDELGHE\WKHFRQWUDFW
' ,Q RUGHU WR SURYH XQGXHLQIOXHQFH WKHUH KDV WR EH D SUHH[LVWLQJ UHODWLRQVKLS
EHWZHHQWKHSDUWLHVWRDFRQWUDFW7KHUHODWLRQVKLSKDVWREHRIVXFKDQDWXUHWKDW
RQHLVLQDSRVLWLRQWRLQIOXHQFHWKHRWKHU,ILWLVSURYHQWKDWWKHUHKDVEHHQXQGXH
LQIOXHQFHWKHSDUW\ZKRKDVEHHQVRLQIOXHQFHGQHHGQRWHQIRUFHWKHFRQWUDFWRU
SHUIRUPKLVREOLJDWLRQVXQGHUWKHFRQWUDFW

)DFWV
$DGLODQG%DDOXDUHEHVWIULHQGV$DGLOLVWKHVRQRIPXOWLPLOOLRQDLUHEXVLQHVVSHUVRQ
&KXOEDO ZKR RZQV 0DDNKDQ 3KDUPDFHXWLFDOV %DDOX LV WKH VRQ RI D EDQN HPSOR\HH
'KDQUDM2QHGD\$DGLOLVDEGXFWHGIURPKLVRIILFHE\%DDOX&KXOEXOUHFHLYHVDSKRQH
FDOO IURP 'KDPDM WHOOLQJ KLP WKDW LI KH GRHV QRW PDNH %DDOX WKH &(2 RI 1,DDNKDQ
3KDUPDFHXWLFDOV$DGLOZLOOEHNLOOHG&KXOEXOUHOXFWDQWO\DJUHHVWRPDNHWKH%DDOXWKH
&(26XEVHTXHQWO\&KXOEXODQG%DDOXVLJQDQHPSOR\PHQWFRQWUDFW+RZHYHUDVVRRQ
DV$DGLOLVUHOHDVHGDQGVDIHO\UHWXUQVKRPH&KXOEXOWHOOV%DDODWKDWKHVKDOOQRWHQIRUFH
WKHHPSOR\PHQWFRQWUDFW%DDOXDQG'KDQUDMDUHQRWVXUHDVWRZKDWLVWREHGRQHQH[W
$VSHUWKHUXOHVDQGWKHJLYHQIDFWVZKRFRHUFHVZKRP
D $DGLOFRHUFHV%DDOX
E %DDOXFRHUFHV&KXOEXOF
'KDQUDMFRHUFHV&KXOEXO
G1RQHRIWKHDERYH

,QWKHDERYHIDFWVLWXDWLRQ
D 7KHUHLVXQGXHLQIOXHQFHH[HUFLVHGE\'KDQUDMRQ%DDOX
E 7KHUHLVXQGXHLQIOXHQFHH[HUFLVHGE\$DGLORQ&KXOEXO
F 7KHUHLVQRXQGXHLQIOXHQFH
G 1RQHRIWKHDERYH

&KXOEXOLV
D -XVWLILHG LQ UHIXVLQJ WR HQIRUFH WKH HPSOR\PHQW FRQWUDFW DV &KXOEXO ZDV
FRHUFHGE\'KDQUDM
E -XVWLILHG LQ UHIXVLQJ WR HQIRUFH WKH HPSOR\PHQW FRQWUDFW DV %DDOX ZDV
FRPSOLFLWLQWKHFRHUFLYHDFW
F 1RWMXVOLOLHGLQUHIXVLQJWRHQIRUFHWKHHPSOR\PHQWFRQWUDFWDV%DDOXZDVDQ
LQQRFHQWSHUVRQDQGKDVQRWFRHUFHG&KXOEXOG%RWKDDQGE

%DDOXZLOOVXFFHHGLQJHWWLQJWKHHPSOR\PHQWFRQWUDFWHQIRUFHGLIKHFDQVKRZWKDW
D +HLVWKHEHVWIULHQGRI$DGLO
E ,WZDVKLVIDWKHUDQGQRWKHZKRXVHGFRHUFLRQDJDLQVW&KXOEXO
F &KXOEXOKDVSURPLVHGKLVIDWKHUWRHPSOR\KLPG1RQHRIWKHDERYH
ϵϵ


5XOH$:KHQD6WDWHXQGHUWDNHVDQ\PHDVXUHWKHHIIHFWVRIWKHPHDVXUHPXVWEHWKHVDPH
IRUDOOWKRVHZKRDUHDIIHFWHGE\LW

)DFWV
PRXQWDLQHHUVHPEDUNHGRQDQH[WUHPHO\ULVN\FOLPELQJH[SHGLWLRQLQ/HK:HDWKHU
FRQGLWLRQVZRUVHQHGILYHGD\VLQWRWKHH[SHGLWLRQDQGWKHPRXQWDLQHHUVDUHWUDSSHGXQGHU
KHDY\VQRZ7KHJRYHUQPHQWUHFHLYHGLQIRUPDWLRQRIWKLVWUDJHG\RQO\WZRZHHNVDIWHUWKH
XQIRUWXQDWHLQFLGHQWDQGKDVRQO\KRXUVLQZKLFKWRVHQGUHVFXHKHOLFRSWHUV:HDWKHU
VWDWLRQV DFURVV WKH ZRUOG FRQILUP WKDW WKLV SDUWLFXODU UHJLRQ RI /HK ZLOO H[SHULHQFH
EOL]]DUGV RI XQSUHFHGHQWHG LQWHQVLW\ IRU DOPRVW WZR ZHHNV DIWHU WKLV KRXU ZLQGRZ
UHQGHULQJDQ\KHOLFRSWHUDFWLYLW\LQWKHUHJLRQLPSRVVLEOHDQGFHUWDLQGHDWKIRUDQ\RQHOHIW
EHKLQG7KHJRYHUQPHQWKDVRQO\ILYHUHVFXHKHOLFRSWHUVZLWKDPD[LPXPFDSDFLW\RI
SHRSOHH[FOXGLQJSLORWVDQGUHTXLVLWHVROGLHUVDQGWKHVHKHOLFRSWHUVFDQIO\RQO\RQFHLQ
KRXUVWRVXFKDOWLWXGHV

$VWKH$LU)RUFHJHWVUHDG\WRVHQGWKHKHOLFRSWHUVDQHPHUJHQF\KHDULQJLVFRQYHQHGLQ
WKH6XSUHPH&RXUWWRFKDOOHQJHWKLVPHDVXUHDVWKLVZRXOGOHDYHSHRSOHWRGLH
,I\RXZHUHWKHMXGJHUHTXLUHGWRDSSO\5XOH$\RXZRXOGGHFLGHWKDW
D $VPDQ\OLYHVPXVWEHVDYHGDVSRVVLEOH
E ,IHYHU\RQHFDQQRWEHUHVFXHGWKHQHYHU\RQHPXVWEHOHIWEHKLQG
F $PHDVXUHFDQQRWEHXSKHOGDWWKHFRVWRIOLYHV
G ,WPXVWEHOHIWWRWKRVHZKRDUHWUDSSHGWRGHFLGHLIWKH\ZDQWKDOIDPRQJVWWKHP
WREHVDYHGDQGOHDYHWKHUHVWWRGLH
5XOH % :KHQ D 6WDWH XQGHUWDNHV DQ\ PHDVXUH HYHU\RQH DIIHFWHG PXVW KDYH DQ HTXDO
FKDQFHWREHQHILWIURPLW

$V WKH JRYHUQPHQW SUHSDUHV WR VHQG LQ UHVFXH KHOLFRSWHUV ZKLFK RSWLRQ ZRXOG EH
DFFHSWDEOHRQO\XQGHU5XOH%DQGQRW5XOH$
D $ ORWWHU\ WR FKRRVH WKH VXUYLYRUV H[FOXGLQJ WKRVH GLDJQRVHG ZLWK WHUPLQDO
LOOQHVVHVIURPSDUWLFLSDWLQJLQWKHORWWHU\
E $ORWWHU\WRGHFLGHWKHVXUYLYRUVZLWKVLQJOHSDUHQWVRIFKLOGUHQEHORZILYH\HDUV
RIDJHDXWRPDWLFDOO\TXDOLI\LQJWREHUHVFXHG
F 7KH\RXQJHVWSHRSOHVKRXOGEHUHVFXHG
G1RQHRIWKHDERYH

&KRRVLQJVXUYLYRUVH[FOXVLYHO\E\DORWWHU\ZRXOGEH
D 3HUPLVVLEOHXQGHU5XOHV$DQG%
E ,PSHUPLVVLEOHXQGHU5XOH$DQG%
F 3HUPLVVLEOHRQO\XQGHU5XOH%G3HUPLVVLEOHRQO\XQGHU5XOH$

,IWKHJRYHUQPHQWGHFLGHVWKDWLWZLOOHLWKHUVDYHHYHU\RQHRUVDYHQRQHLWZRXOGEH
D 3HUPLVVLEOHXQGHU5XOHV$DQG%
E ,PSHUPLVVLEOHXQGHU5XOHV$DQG%
F 3HUPLVVLEOHRQO\XQGHU5XOH$
G 3HUPLVVLEOHRQO\XQGHU5XOH%
ϭϬϬ

5XOHV
$ $SHUVRQLVDQHPSOR\HHRIDQRWKHULIWKHPRGHDQGWKHPDQQHULQZKLFKKHRUVKH
FDUULHVRXWKLVZRUNLVVXEMHFWWRFRQWURODQGVXSHUYLVLRQRIWKHODWWHU
% $QHPSOR\HULVUHTXLUHGWRSURYLGHFRPSHQVDWLRQWRKLVRUKHUHPSOR\HHVIRUDQ\
LQMXU\FDXVHGE\DQDFFLGHQWDULVLQJLQWKHFRXUVHRIHPSOR\PHQW7KHZRUGV
LQWKH
FRXUVHRIWKHHPSOR\PHQW
PHDQVLQWKHFRXUVHRIWKHZRUNZKLFKWKHHPSOR\HHLV
FRQWUDFWHGWRGRDQGZKLFKLVLQFLGHQWDOWRLW
)DFWV
0HVVUV=DIDU$ELGLDQG&R&RPSDQ\PDQXIDFWXUHVELGLVZLWKWKHKHOSRISHUVRQVNQRZQ
DVCSDWWDGDUV
7KHSDWWDGDUVDUHVXSSOLHGWREDFFRDQGOHDYHVE\WKH&RPSDQ\DQGDUH
UHTXLUHGWRUROOWKHPLQWRELGLVDQGEULQJWKHELGLVEDFNWRWKH&RPSDQ\7KHSDWWDGDUV
DUHIUHHWRUROOWKHELGLVHLWKHULQWKHIDFWRU\RUDQ\ZKHUHHOVHWKH\SUHIHU7KH\DUHQRW
ERXQGWRDWWHQGWKHIDFWRU\IRUDQ\IL[HGKRXUVRIZRUNRUIRUDQ\IL[HGQXPEHURIGD\V
1HLWKHU DUH WKH\ UHTXLUHG WR UROO XS DQ\ IL[HG QXPEHU RI ELGLV 7KH &RPSDQ\ YHULILHV
ZKHWKHUWKHELGLVDGKHUHWRWKHVSHFLILHGLQVWUXFWLRQVRUQRWDQGSD\VWKHSDWWDGDUVRQ
WKHEDVLVRIWKHQXPEHURIELGLVWKDWDUHIRXQGWREHRIULJKWTXDOLW\$DVKLVK0DWKHZLV
RQHRIWKHSDWWDGDUVRIWKH&RPSDQ\+HZDVKLWE\DFDUMXVWRXWVLGHWKHSUHFLQFWRIWKH
IDFWRU\ZKLOHKHZDVKHDGLQJWRKDYHOXQFKLQDQHDUE\IRRGVWDOO$DVKLVK0DWKHZKDV
DSSOLHGIRUFRPSHQVDWLRQIURPWKH&RPSDQ\
:KLFKRIWKHIROORZLQJVWDWHPHQWVFDQPRVWSODXVLEO\EHLQIHUUHGIURPWKHDSSOLFDWLRQ
RIWKHUXOHVWRWKHJLYHQIDFWV
D$DVKLVK0DWKHZLVDQHPSOR\HHRIWKH&RPSDQ\EHFDXVHWKHODWWHUH[HUFLVHV
FRQWURO RYHU WKH PDQQHU LQ ZKLFK $DVKLVK 0DWKHZ FDUULHV RXW KLV ZRUN E
$DVKLVK0DWKHZ LV QRW DQHPSOR\HHEXW DQ LQGHSHQGHQWFRQWUDFWRUDV KH GRHV
QRWKDYHDIL[HGVDODU\
F $DVKLVK 0DWKHZ LV DQ HPSOR\HH EHFDXVH WKH &RPSDQ\ H[HUFLVHV FRQWURO
RYHUWKHILQDOTXDOLW\RIWKHELGLV
G 9HULILFDWLRQRIWKHTXDOLW\RIELGLVDPRXQWVWRFRQWURORYHUWKHSURGXFWDQG
QRWFRQWURORYHUWKHPRGHDQGPHWKRGRIZRUNDQGWKHUHIRUH$DVKLVK0DWKHZLV
QRWDQHPSOR\HHRIWKH&RPSDQ\

,QFDVHWKHSDWODGDUVZHUHFRPSXOVRULO\UHTXLUHGWRZRUNLQWKHIDFWRU\IRUDPLQLPXP
QXPEHURIKRXUVHYHU\GD\WKHQLWZRXOGEHFRUUHFWWRVWDWHWKDW
D7KHLQMXU\ZDVQRWFDXVHGE\DQDFFLGHQWLQWKHFRXUVHRIHPSOR\PHQWE
$DVKLVK0DWKHZZRXOGQRWEHDQHPSOR\HHDVWKH&RPSDQ\ZRXOGKDYHVWLOOQRW
H[HUFLVHGFRQWURORYHUWKHPDQQHURIZRUN
F 7KHLQMXU\VXIIHUHGE\$DVKLVK0DWKHZFRXOGQRWEHKHOGWREHRQHFDXVHG
E\DQDFFLGHQW
G 6WLSXODWLRQVRQSODFHDQGKRXUVRIZRUNUHODWHWRPDQQHUDQGPRGHRIZRUN
DQGWKHUHIRUH$DVKLVK0DWKHZZRXOGEHKHOGWREHDQHPSOR\HHRIWKH&RPSDQ\

$FFRUGLQJWRWKHIDFWVDQGWKHUXOHVVSHFLILHGZKLFKRIWKHIROORZLQJSURSRVLWLRQVLV
FRUUHFW"
D 7KH &RPSDQ\ LV QRW OLDEOH WR SD\ FRPSHQVDWLRQ DV WKH LQMXU\ WR $DVKLVK
0DWKHZZDVQRWFDXVHGE\DQDFFLGHQWDULVLQJLQWKHFRXUVHRIHPSOR\PHQW
E 7KH&RPSDQ\LVOLDEOHWRSD\WKHFRPSHQVDWLRQ
F 6LQFHWKHLQMXU\GLGQRWDULVHLQWKHFRXUVHRIHPSOR\PHQWWKH&RPSDQ\
ZRXOGQRWEHOLDEOHWRSD\WKHFRPSHQVDWLRQHYHQWKRXJK$DVKLVK0DWKHZ
LVDQHPSOR\HHRIWKHFRPSDQ\
ϭϬϭ

G 7KH &RPSDQ\ LV OLDEOH WR SD\ WKH FRPSHQVDWLRQ DV $DVKLVK 0DWKHZ LV D
FRQWUDFWHGSDWWDGDUZLWKWKHFRPSDQ\

6HOHFWWKHVWDWHPHQWWKDWFRXOGEHVDLGWREHPRVWGLUHFWLQIHUHQFHIURPVSHFLILHGIDFWV
D 7KHLQMXU\WR$DVKLVK0DWKHZGLGQRWDULVHLQWKHFRXUVHRIHPSOR\PHQWDV
KHZDVQRWUROOLQJELGLVDWWKHWLPHZKHQKHZDVKLWE\WKHFDU
E 6LQFH WKH $VKLVK 0DWKHZ LV D FRQWUDFWHG SDWWDGDU ZLWK WKH &RPSDQ\ LW
VKDOOEHSUHVXPHGWKDWWKHLQMXU\ZDVFDXVHGE\DQDFFLGHQWLQWKHFRXUVHRI
HPSOR\PHQW
F 6LQFHWKHUHZDVQRUHODWLRQVKLSRIHPSOR\PHQWEHWZHHQ$DVKLVK0DWKHZDQG
WKH&RPSDQ\WKHLQMXU\VXIIHUHGE\$DVKLVK0DWKHZFRXOGQRWEHKHOGWREH
RQH DULVLQJ LQ WKH FRXUVH RI HPSOR\PHQW
QRWZLWKVWDQGLQJ WKH IDFW WKDW WKH
FRQFHUQHGLQMXU\ZDVFDXVHGZKLOHKHZDVLQYROYHGLQDQDFWLYLW\LQFLGHQWDO
WRKLVGXWLHV
G $V WKH FRQFHUQHG LQMXU\ ZDV FDXVHG WR $DVKLVK 0DWKHZ ZKLOH KH ZDV
LQYROYHG LQ DQ DFWLYLW\ LQFLGHQWDO WR KLV GXWLHV WKH LQMXU\ GLG DULVH LQ WKH
FRXUVHRIHPSOR\PHQW

,I WKH SDWWDGDUV ZHUH FRPSXOVRULO\ UHTXLUHG WR ZRUN LQ WKH IDFWRU\ IRU D PLQLPXP
QXPEHU RI KRXUV HYHU\ GD\ WKHQ WKH &RPSDQ\ ZRXOG KDYH EHHQ OLDEOH WR SD\
FRPSHQVDWLRQWR$DVKLVK0DWKHZLIWKHODWWHU
D +DG EHHQ DVVDXOWHG DQG JULHYRXVO\ KXUW E\ KLV QHLJKERXU LQVLGH WKH IDFWRU\
SUHFLQFWVRYHUDSURSHUW\GLVSXWH
E +DGVOLSSHGDQGIUDFWXUHGKLVDUPZKLOHWU\LQJWRFRPPXWHRQDFLW\EXVIURP
KLVKRPHWRWKHIDFWRU\
F +DGEHHQLQMXUHGZKLOHFRPPXWLQJRQDEXVSURYLGHGE\WKH&RPSDQ\DQGZKLFK
KHZDVUHTXLUHGE\KLVFRQWUDFWWRXVHHYHU\GD\
G +DGEHHQFDXJKWLQWKHPLGGOHRIDFURVVILUHEHWZHHQSROLFHDQGDJDQJRIUREEHUV
ZKLOHWUDYHOOLQJWRZRUNRQDFLW\EXV

3UREOHP)RUTXHVWLRQVWR5XOHV
$ :KRHYHU LQWHQGLQJ WR WDNH DQ\ PRYHDEOH SURSHUW\ RXW RI WKH SRVVHVVLRQ RI DQ\
SHUVRQ ZLWKRXW WKDW SHUVRQ
V FRQVHQW PRYHV WKDW SURSHUW\ RXW RI KLV RU KHU
SRVVHVVLRQLVVDLGWRFRPPLWWKHIW
% $SHUVRQZKRZLWKRXWODZIXOH[FXVHGDPDJHVDQ\SURSHUW\EHORQJLQJWRDQRWKHU
LQWHQGLQJWRGDPDJHDQ\VXFKSURSHUW\VKDOOEHJXLOW\RIFDXVLQJFULPLQDOGDPDJH
& 'DPDJHPHDQVDQ\LPSDLUPHQWRIWKHYDOXHRIDSURSHUW\
)DFWV
9HHQDDQROGODG\RI\HDUVXVHGWROLYHZLWKKHUJUDQGGDXJKWHU,QGLUD9HHQDZDVLOO
DQGWKHUHIRUHEHGULGGHQIRUVHYHUDOPRQWKV,QWKRVHPRQWKVVKHFRXOGQRWWROHUDWHDQ\
QRLVHDQGLW
EHFDPHTXLWHGLIILFXOWWRFOHDQKHUURRP$IWHUVKHGLHG,QGLUDKLUHGDFOHDQHU
/XFN\WRFOHDQWKHURRPDQGWKURZDZD\DQ\UXEELVKWKDWPD\EHWKHUH7KHUHZDVDSLOH
RIROGQHZVSDSHUVZKLFK9HHQDKDGVWDFNHGLQDFRUQHURIKHUURRP/XFN\DVNHG,QGLUD
LIKHVKRXOGFOHDUDZD\WKHSLOHRIROGQHZVSDSHUVWRZKLFKVKHVDLG\HV/XFN\WRRNWKH
SLOH WR D PXQLFLSDOLW\ UXEELVK GXPS :KLOH /XFN\ ZDV VRUWLQJ DQG WKURZLQJ DZD\ WKH
QHZVSDSHUVKHZDVYHU\VXUSULVHGWRILQGDEHDXWLIXOSDLQWLQJLQEHWZHHQWZRVKHHWVRI
SDSHU+HWKRXJKWWKDW,QGLUDSUREDEO\ZRXOGQ
WZDQWWKLVROGSDLQWLQJEDFNHVSHFLDOO\
EHFDXVHLWZDV,·PLQVHYHUDOSODFHVDQGWKHFRORXUZDVIDGLQJ+HWRRNWKHSDLQWLQJKRPH
PRXQWHGLWRQDZRRGHQIUDPHDQGKXQJLWRQWKHZDOORIKLVEHGURRP8QNQRZQWRKLP
WKH SDLQWLQJ ZDV DQ ROG PDVWHUSLHFH DQG ZRUWK WZHQW\ WKRXVDQG UXSHHV %HIRUH
PRXQWLQJWKHSDLQWLQJ/XFN\SDVWHGLWRQDSODLQVKHHWRISDSHUVRWKDWLWGRHVQRWWHDU
ϭϬϮ

DQ\ PRUH %\ GRLQJ VR KH PDGH LWV SURIHVVLRQDO UHVWRUDWLRQ YHU\ GLIILFXOW DQG WKHUHE\
UHGXFHGLWVYDOXHE\KDOI

/XFN\
V QHLJKERXU .DPDOD GLVFRYHUHG WKDW WKH SDLQWLQJ EHORQJHG WR ,QGLUD :LWK WKH
PRWLYHRIUHWXUQLQJWKHSDLQWLQJWR,QGLUD.DPDODFOLPEHGWKURXJKDQRSHQZLQGRZLQWR
/XFN\
VURRPZKHQKHZDVDZD\RQHDIWHUQRRQDQGUHPRYHGWKHSDLQWLQJIURPKLVKRXVH

+DV/XFN\FRPPLWWHGWKHIW"
D <HV/XFN\KDVFRPPLWWHGWKHIWRIWKHQHZVSDSHUVDQGWKHSDLQWLQJ
E 1R/XFN\KDVQRWFRPPLWWHGWKHIWEHFDXVHKHKDG9HHQD
VFRQVHQW
F <HV/XFN\KDVFRPPLWWHGWKHIWRIWKHSDLQWLQJEXWQRWRIWKHQHZVSDSHUV
G 1R/XFN\KDVQRWFRPPLWWHGWKHIWEHFDXVHKHKDVQRWPRYHGWKHSDLQWLQJRXWRI
9HHQD
VSRVVHVVLRQ

,V/XFN\JXLOW\RIFULPLQDOGDPDJH"
D 1R/XFN\LVQRWJXLOW\RIFULPLQDOGDPDJHDVKHGLGQRWLQWHQWLRQDOO\LPSDLUWKH
YDOXHRIWKHSDLQWLQJ
E <HV/XFN\LVJXLOW\RIFULPLQDOGDPDJHDVKHLQWHQWLRQDOO\VWXFNWKHSDSHURQWR
WKHSDLQWLQJ
F 1R/XFN\LVQRWJXLOW\RIFULPLQDOGDPDJHDVKHGRHVQRWKDYHWKHSDLQWLQJLQKLV
SRVVHVVLRQDQ\PRUH
G 1R/XFN\LVQRWJXLOW\RI&ULPLQDOGDPDJHDVKHKDVQRWGHVWUR\HGWKHSDLQWLQJ

,I/XFN\KDGGLVFRYHUHGWKHSDLQWLQJEHIRUHOHDYLQJ,QGLUD
VKRXVHUDWKHUWKDQDWWKH
UXEELVKGXPSZRXOGOLHKDYHEHHQJXLOW\RIWKHIWLQWKLVFDVH
"
D <HVKHZRXOGEHJXLOW\RIWKHIWRIWKHQHZVSDSHUVDQGWKHSDLQWLQJV
E 1RKHZRXOGQRWEHJXLOW\!WKHIW
F <HVOLHZRXOGEHJXLOW\!WKHIW!WKHSDLQWLQJ
G 1RQH!WKHDERYH
,V.DPDODJXLOW\RIWKHIW
"
D 1R.DPDODLVQRWJXLOW\RIWKHIWVLQFHWKHSHUVRQVKHWRRNWKHSDLQWLQJIURP/XFN\
ZDVQRWLWVODZIXORZQHU
E 1R.DPDODLVQRWJXLOW\!WKHIWVLQFHVKHWRRNWKHSDLQWLQJRQO\ZLWKWKHPRWLYH!
UHWXUQLQJLWWR,QGLUD
F <HV .DPDOD LV JXLOW\ RI WKHIW DV VKH WRRN WKH SDLQWLQJ RXW ! /XFN\
V SRVVHVVLRQ
ZLWKRXWKLVFRQVHQW
G 1RQHRIWKHDERYH

$" RI WKH IROORZLQJ SURSRVLWLRQV FRXOG EH LQIHUUHG IURP WKH IDFWV DQG WKH UXOHV
VSHFLILHG
D .DPDODLVJXLOW\RIFULPLQDOGDPDJHDVWKHSHUVRQVKHWRRNWKHSDLQWLQJIURP/XFN\
ZDVQRWLWVODZIXORZQHU
E .DPDOD LV JXLOW\ RI FULPLQDO GDPDJH DV VKH WRRN WKH SDLQWLQJ ZLWKRXW /XFN\
V
FRQVHQW
F .DPDOD LV QRW JXLOW\ RI FULPLQDO GDPDJH DV WKH SDLQWLQJ KDV QRW EHHQ FRPSOHWHO\
GHVWUR\HG
G 1RQHRIWKHDERYH

3UREOHP>)RUTXHVWLRQV# ?
ϭϬϯ

$ :KHQODQGLVVROGDOOCIL[WXUHV
RQWKHODQGDUHDOVRGHHPHGWRKDYHEHHQVROG
% ,I D PRYHDEOH WKLQJ LV DWWDFKHG WR WKH ODQG RU DQ\ EXLOGLQJ RQ WKH ODQG WKHQ LW
EHFRPHVD
IL[WXUH

)DFWV
.KDOHHGDZDQWVWRVHOODSORWRIODQGVKHRZQVLQ%DJKPDUD0HJKDOD\DDQGWKHVDOHYDOXH
GHFLGHGIRUWKHSORWLQFOXGHVWKHIXOO\IXUQLVKHGSDODWLDOVL[EHGURRPKRXVHWKDWVKHKDV
EXLOWRQLWILYH\HDUVDJR6KHVHOOVLWWR*DUUHWIRUVL[W\ODN\UXSHHV$IWHUFRPSOHWLQJWKH
VDOHVKHUHPRYHVWKHH[SHQVLYH,UDQLDQFDUSHW"XVHGWRFRYHUWKHHQWLUHZRRGHQIORRU
RIRQHRIWKHEHGURRPV7KHURRPKDGYHU\OLWWOHOLJKWDQG.KDOLGXVHGWKLVOLJKWFRORUHG
UDGLDQWFDUSHWWRQHJDWHVRPHRIWKHGDUNQHVVLQWKHURRP*DUUHWDIWHUPRYLQJLQUHDOL]HV
WKLVDQGILOHVDFDVHWRUHFRYHUWKHFDUSHWIURP.KDOLG

$VDMXGJH\RXZRXOGGHFLGHLQIDYRXURI
D *DUUHWEHFDXVHZKHQWKHSULFHZDVDJUHHGXSRQ.KDOLGGLGQRWLQIRUPKHU
DERXWUHPRYLQJWKHFDUSHW
E *DUUHW EHFDXVH WKH FDUSHW ZDV LQWHJUDO WR WKH IORRU RI WKH EHGURRP DQG
WKHUHIRUHDWWDFKHGWRWKHEXLOGLQJWKDWZDVVROG
F .KDOLG EHFDXVH D IXOO\IXUQLVKHG KRXVH GRHV QRW HQWDLO WKH EX\HU WR
HYHU\WKLQJLQWKHKRXVH
G .KDOLGEHFDXVHE\9LUWXHRI
EHLQJDFDUSHWLWZDVQHYHUSHUPDQHQWO\IL[HGWR
WKHIORRURIWKHEXLOGLQJ

$VVXPHWKDWLQWKHDERYHIDFWVFHQDULR.KDOLGQRORQJHUZDQWVWKHFDUSHW6KHUHPRYHV
WKHHODERUDWHO\FDUYHGGRRU WR WKHKRXVH DIWHU WKHVDOHKDVEHHQFRQFOXGHG DQG FODLPV
WKDW*DUUHWKDVQRFODLPWRWKHGRRU7KHGRRULQTXHVWLRQZDVSDUWRI.KDOHHGD
VDQFHVWUDO
KRPH LQ 1DJHUFRLO 7DPLO 1DGX IRUPRUH WKDQ \HDUV EHIRUH VKH KDG LW ILWWHG DV WKH
HQWUDQFHWRKHU%DJKPDUDKRXVH

$VDMXGJH\RXZRXOGGHFLGHLQIDYRXURI
D .KDOHHGD EHFDXVH ZKLOH WKH UHVW RI WKH EXLOGLQJ EHORQJV WR .KDOHHGD
H[FOXVLYHO\WKHGRRULVDQFHVWUDOSURSHUW\DQGWKHUHIRUHWKHGHFLVLRQWRVHOOLWFDQQRW
EH.KDOHHGD
VDORQH
E *XUSUHHWEHFDXVHWKHGRRULVDQLQWHJUDOSDUWRIWKHEXLOGLQJDVLWLVDWWDFKHG
WRLW
F .KDOHHGDEHFDXVHWKHGRRUFDQEHUHPRYHGIURPWKHEXLOGLWWJDQGLVWKHUHIRUH
QRWDWWDFKHGWRLW
G *XUSUHHWEHFDXVHWKHFRQWUDFWLVH[SOLFLWO\IRUWKHZKROHKRXVHDQGVLQFHWKH
GRRULVSDUWRIKRXVHLWFDQQRWEHUHPRYHGVXEVHTXHQWWRWKHVDOH

$PRQJVWWKHIROORZLQJRSWLRQVWKHPRVWUHOHYDQWFRQVLGHUDWLRQZKLOHGHFLGLQJDFDVH
RQWKHEDVLVRIWKHDERYHWZRSULQFLSOHVZRXOGEH
D :KHWKHUWKHPRYHDEOHWKLQJZDVLQFOXGHGLQWKHVDOHDJUHHPHQW
E :KHWKHUWKHPRYHDEOHWKLQJZDVPHUHO\SODFHGRQWKHODQGRUEXLOGLQJF
:KHWKHUWKHPRYHDEOHWKLQJKDGEHFRPHDQLQVHSDUDEOHSDUWRIWKHODQGRU
EXLOGLQJ
G:KHWKHUWKHPRYHDEOHWKLQJFRXOGEHUHPRYHG

5XOH&,IDPRYHDEOHWKLQJLVSODFHGRQODQGZLWKWKHLQWHQWLRQWKDWLWVKRXOGEHFRPH
DQLQWHJUDOSDUWRIWKHODQGRUDQ\VWUXFWXUHRQWKHODQGLWEHFRPHVDIL[WXUH
ϭϬϰ

$SSO\LQJ5XOHV$DQG&WRWKHIDFWVLWXDWLRQVLQTXHVWLRQVDQGDVDMXGJH\RX
ZRXOGGHFLGHLQIDYRXURI
D .KDOHHGDLQERWKVLWXDWLRQV
E *XUSUHHWRQO\LQ
F .KDOHHGDRQO\LQ
G *XUSHHWLQERWKVLWXDWLRQV

3UREOHP>)RUTXHVWLRQV

5XOH$$QRZQHURIODQGKDVWKHULJKWWRXVHWKHODQGLQDQ\PDQQHUKHRUVKHGHVLUHV7KH
RZQHURIODQGDOVRRZQVWKHVSDFHDERYHDQGWKHGHSWKVEHORZLW

5XOH % 5LJKWV DERYH WKH ODXG H[WHQG RQO\ WR WKH SRLQW WKH\ DUH HVVHQWLDO WR DQ\ XVH RU
HQMR\PHQWRIODQG

5XOH&$QRZQHUFDQQRWFODLPLQIULQJHPHQWRIKHUSURSHUW\ULJKWLIWKHVSDFHDERYHKLV
RUKHUODQGLVSXWWRUHDVRQDEOHXVHE\VRPHRQHHOVHDWDKHLJKWDWZKLFKWKHRZQHUZRXOG
KDYHWRUHDVRQDEOHXVHRILWDQGLWGRHVQRWDIIHFWWKHUHDVRQDEOHHQMR\PHQWRIKLVRUKHU
ODQG

5DPHVK
VFDVH5DPHVKRZQVDQDFUHRIODQGRQWKHRXWVNLUWVRI6XOOXUSHWD$QGKUD
3UDGFVK 7KH *RYHPPHQW RI ,QGLD ODXQFKHV LWV VDWHOOLWHV LQWR VSDFH IUHTXHQWO\ IURP
6ULKDULNRWD QHDU 6XOOXUSFOD 7KH *RYHUQPHQW RI ,QGLD GRHV QRW GHQ\ WKDW RQFH WKH
VDWHOOLWH ODXQFK KDV WUDYHOHG WKH GLVWDQFH RI DOPRVW NLORPHWUHV LW SDVVHV RYHU
5DPHVK
VSURSHUO\5DPHVKILOHVDFDVHFODLPLQJWKDWWKH*RYHUQPHQWRI,QGLDKDVYLRODWHG
KLVSURSHUW\ULJKWVE\URXWLQJLWVVDWHOOLWHRYHUKLVSURSHUW\DOEHLWNLORPHWUHVGLUHFWO\
DERYHLW

$SSO\LQJRQO\5XOH$WR5DPHVK
VFDVHDVDMXGJH\RXZRXOGGHFLGH
D ,Q IDYRXU RI WKH *RYHUQPHQW RI ,QGLD EHFDXVH WKH WUDQVJUHVVLRQ ZD] DW D
KHLJKWDWZKLFK5DPHVKFRXOGQRWSRVVLEO\KDYHDQ\XVHIRU
E 7KDWRZQHUVKLSRIODQGGRHVQRWPHDQWKDWWKHRZQHU
VULJKWH[WHQGVLQILQLWHO\
LQWRVSDFHDERYHWKHODQG
F ,QIDYRXURI5DPHVKEHFDXVHKHKDVWKHULJKWWRLQILQLWHVSDFHDERYHWKHODQG
KHRZQV
G ,Q IDYRXU RI WKH *RYHUQPHQW RI ,QGLD EHFDXVH LW ZRXOG OHDG WR WKH DEVXUG
UHVXOW WKDW 5DPHVK DQG PRVW RWKHU SURSHUW\ RZQHUV ZRXOG KDYH D FODLP DJDLQVW
DLUOLQHFRPSDQLHVDQGRWKHUFRXQWULHVRIWKHZRUOGZKRVHVDWHOOLWHVRUELWWKHHDUWK
6KD]LD
VFDVH6KD]LDRZQVDVLQJOHVWRUH\HGKRXVHLQ$KPHGDEDGZKLFKKDVEHHQLQKHU
IDPLO\IRUPRUHWKDQ\HDUV7KHIRXQGDWLRQRIWKHKRXVHFDQQRWVXSSRUWDQRWKHUIORRU
DQG6KD]LDKDVQRLQWHQWLRQRIGHPROLVKLQJKHUIDPLO\KRPHWRFRQVWUXFWDELJJHUEXLOGLQJ
-DYHGDQG6DQGHHSDUHEXVLQHVVSDUWQHUVDQGRZQWKUHHVWRUH\KRXVHVRQHLWKHUVLGHRI
6KD]LD
VKRXVH-DYHGDQG6DQGHHSDUHDOVR$KPHGDEDG
VPDLQGLVWULEXWRUVIRUDPDMRU
VRIWGULQNHFRPSDQ\7KH\KDYHHUHFWHGDKXJHKRDUGLQJDGYHUWLVLQJWKHLUSURGXFWVZLWK
WKHHQGVVXSSRUWHGRQWKHLUURRIVEXWWKHKRDUGLQJDOVRSDVVHVRYHU6KD]LD
VKRXVHDW
IHHWDQGFDVWVDSHUPDQHQWVKDGRZRQKHUWHUUDFH6KD]LDGHFLGHVWRKRLVWDKXJH,QGLDQ
IODJJRLQJXSWRIHHWRQKHUURRI6KHILOHVDFDVHDVNLQJWKHFRXUWWRRUGHU-DYHGDQG
6DQGHHSWRUHPRYHWKHKRDUGLQJIRUDOOWKHVHUHDVRQV
$SSO\LQJ RQO\ 5XOH % WR 6KD]LD
V FDVH\RXZRXOG GHFLGH LQ IDYRXU RI D -DYHG DQG
6DQGHHSEHFDXVH6KD]LDFDQHDVLO\KRLVWDIODJEHORZIHHWE6KD]LDEHFDXVHVKH
KDVWKHULJKWWRSXWKHUODQGWRDQ\XVHDQGWKHFRXUWFDWPRWJRLQWRKHULQWHQWLRQV
IRUKRLVWLQJDIODJDWIHHW
ϭϬϱ

F 6KD]LD EHFDXVH VKH KDV WKH DEVROXWH ULJKW WR WKH VSDFH DERYH KHU ODQG G
-DYHGDQG6DQGHHSEHFDXVHKRLVWLQJDIODJIHHWDERYHRQH
VURRILVQRWHVVHQWLDO
WRWKHXVHDQGHQMR\PHQWRIWKHODQG
$SSO\LQJRQO\5XOHV$DQG%WR6KD]LD
VFDVH\RXZRXOGGHFLGH
D ,QIDYRXURI6KD]LDRQO\XQGHU5XOH$
E ,QIDYRXURI6KD]LDXQGHU5XOH$DVZHOODV%
F $JDLQVW6KD]LDXQGHU5XOH%
G $JDLQVW6KD]LDXQGHU5XOH$DVZHOODV%
$SSO\LQJRQO\5XOH%DQG&WR5DPHVK
VFDVH\RXZRXOGGHFLGH
D,QIDYRXURI5DPHVKRQO\XQGHU5XOH%E,Q
IDYRXURI5DPHVKXQGHU5XOH%DVZHOODV&F
$JDLQVW5DPHVKXQGHU5XOH&
G$JDLQVW5DPHVKXQGHU5XOH%DVZHOODV&
$SSO\LQJ5XOH&WR6KD]LD
VFDVH\RXZRXOGGHFLGH
D ,QKHUIDYRXUEHFDXVHKRLVWLQJDIHHWKLJKIODJLVUHDVRQDEOH
E $JDLQVWKHUEHFDXVHKRLVWLQJDIHHWKLJKIODJLVQRWUHDVRQDEOH
F $JDLQVWKHUEHFDXVHWKHKRDUGLQJLVDUHDVRQDEOHXVHRIWKHVSDFHDERYHKHUODQG
G ,Q KHU IDYRXU EHFDXVH WKH SHUPDQHQW VKDGRZ FDVW E\ WKH KRDUGLQJ DIIHFWV WKH
UHDVRQDEOHHQMR\PHQWRIKHUODQG
$'()$*
!"#$%
7HVW%RRNOHW6HULHV$
81'(5*5$'8$7($'0,66,216
7LPHSPWRSPKRXUV 0D[LPXP0DUNV
5ROO1XPEHU

,16758&7,21672&$1','$7(6
%HIRUH XVLQJ WKH WHVWERRNOHW DQG 205 DQVZHU VKHHWFKHFN WKHP IRU DQ\GHIHFW
OLNHPLVSULQWIXGJLQJRISULQWPLVVLQJSDJHVTXHVWLRQVFLUFOHVHWFDQGDVNIRUD
UHSODFHPHQW
1RVHFRQGWHVWERRNOHWRU205DQVZHUVKHHWVKDOOEHSURYLGHGH[FHSWLQDVLWXDWLRQ
PHQWLRQHGXQGHULQVWUXFWLRQDERYH
(QWHU\RX5ROO1XPEHU7HVW%RRNOHW6HULHVDQG7HVW%RRNOHW1XPEHULQWKHVSDFH
SURYLGHG RQ 205 DQVZHU VKHHW ZLWK %DOO 3RLQW 3HQ RQO\ DQG VKDGH WKH UHOHYDQW
FLUFOHVZLWK+%3HQFLORQO\
7KHUH DUH PXOWLSOHFKRLFH W\SH TXHVWLRQV (DFK TXHVWLRQ FDUULHV RQH PDUN
(DFKTXHVWLRQKDVIRXUFKRLFHVRIDQVZHU6HOHFWWKHPRVWDSSURSULDWHDQVZHUDQG
VKDGHWKHFRUUHVSRQGLQJFLUFOHLQWKH205VKHHWZLWK+%3HQFLORQO\,IPRUHWKDQ
RQHFLUFOHLVVKDGHGWKHDQVZHUVKDOOEHGHHPHGDVZURQJ7KHUHLVQRQHJDWLYH
PDUNLQJIRUZURQJDQVZHUV
6SHFLILF LQVWUXFWLRQV DUH JLYHQ DW WKH EHJLQQLQJ RI HDFK TXHVWLRQ RU D VHW RI
TXHVWLRQV5HDGWKHPFDUHIXOO\EHIRUHDQVZHULQJ
ϭϬϲ

3RVVHVVLRQ RI DQ\ NLQG RI HOHFWURQLF JDGJHW LQ WKH H[DPLQDWLRQ KDOO LV VWULFWO\
SURKLELWHG 3RVVHVVLRQ DQGRU XVH RI DQ\ VXFK JDGJHW VKDOO GLVTXDOLI\ WKH
FDQGLGDWH
,QFDVHRIDQ\PDOSUDFWLFHRUDWWHPSWWRUHVRUWWRDQ\PDOSUDFWLFHZKLFKLQFOXGHV
WDONLQJ WR QHLJKERXUV FRS\LQJ RU XVLQJ XQIDLU PHDQV HWF WKH &HQWUH
6XSHULQWHQGHQWVKDOOVHL]HWKHPDWHULDOLIDQ\DQGH[SHOWKHFDQGLGDWH
)LUVWEHOOZLOOEHUXQJPLQXWHVEHIRUHWKHFRPPHQFHPHQWRIWKHWHVW$VVRRQDV
WKHILUVWEHOOULQJVWKHFDQGLGDWHVKDOOZULWHKLVKHUUROOQRDWWKHSODFHVSUHVFULEHG
ZKLFKVKDOOEHFKHFNHGDQGVLJQHGE\WKH,QYLJLODWRURQGXW\6HFRQGEHOODWSP
ZLOOLQGLFDWHWKHFRPPHQFHPHQWRIWKHWHVW$RQHKRXUEHOOZLOOJRRIIDWSP7KH
IRXUWKEHOOZLOOEHUXQJPLQXWHVEHIRUHWKHHQGRIWKHWHVW$)LIWKORQJEHOOZLOO
LQGLFDWHWKHHQGRIWHVWDWSP
1RFDQGLGDWHVKDOOEHSHUPLWWHGWROHDYHWKH([DPLQDWLRQ+DOOEHIRUHSP
7KHFDQGLGDWHVDUHUHTXLUHGWRVXUUHQGHUWKHWHVW%RRNOHWWRWKH,QYLJLODWRUEHIRUH
OHDYLQJ
7RWDO1XPEHURI3DJHVLQWKHWHVW%RRNOHWLVLQFOXGLQJEODQNSDJHVIRUURXJK
ZRUN

6LJQDWXUHRI&HQWUH6XSHULQWHQGHQW
(1*/,6+
,QVWUXFWLRQV WR 5HDG WKH JLYHQ SDVVDJH FDUHIXOO\ DQG DWWHPSW WKH TXHVWLRQV WKDW
IROORZ

7KHZRUNZKLFK*DQGKLMLKDGWDNHQXSZDVQRWRQO\UHJDUGLQJWKHDFKLHYHPHQWRISROLWLFDO
IUHHGRPEXWDOVRWKHHVWDEOLVKPHQWRIDQHZVRFLDORUGHUEDVHGRQWUXWKDQGQRQYLROHQFH
XQLW\DQGSHDFHHTXDOLW\DQGXQLYHUVDOEURWKHUKRRGDQGPD[LPXPIUHHGRPIRUDOO7KLV
XQILQLVKHG SDUW RI KLV H[SHULPHQW ZDV SHUKDSV HYHQ PRUH GLIILFXOW WR DFKLHYH WKDQ WKH
DFKLHYHPHQWRISROLWLFDOIUHHGRP,QWKHSROLWLFDOVWUXJJOHWKHILJKWZDVDJDLQVWDIRUHLJQ
SRZHUDQGDOORQHFRXOGGRZDVHLWKHUMRLQLWRUZLVKLWVXFFHVVDQGJLYHLWKLVKHUPRUDO
VXSSRUW,QHVWDEOLVKLQJDVRFLDORUGHURQWKLVSDWWHUQWKHUHZDVDVWURQJSRVVLELOLW\RID
FRQIOLFWDULVLQJEHWZHHQGLYHUVHJURXSVDQGFODVVHVRIRXURZQSHRSOH([SHULHQFHVKRZV
WKDWPDQYDOXHVKLVSRVVHVVLRQVHYHQPRUHWKDQKLVOLIHEHFDXVHLQWKHIRUPHUKHVHHVWKH
PHDQVIRUSHUSHWXDWLRQDQGVXUYLYDORIKLVGHVFHQGDQWVHYHQDIWHUKLVERG\LVUHGXFHGWR
DVKHV $ QHZ RUGHU FDQQRW EH HVWDEOLVKHG ZLWKRXW UDGLFDOO\ FKDQJLQJ WKH PLQG DQG
DWWLWXGHRIPHQWRZDUGVSURSHUW\DQGDWVRPHVWDJHRUWKHRWKHUWKH
KDYHV
KDYHWR\LHOG
SODFH WR WKH
KDYHQRWV
:H KDYH VHHQ LQ RXU WLPH DWWHPSWV WR DFKLHYH D NLQG RI
HJDOLWDULDQVRFLHW\DQGWKHSLFWXUHRILWDIWHULWZDVDFKLHYHG%XWWKLVZDVGRQHE\DQG
ODUJHWKURXJKWKHXVHRISK\VLFDOIRUFH
,QWKHXOWLPDWHDQDO\VLVLWLVGLIILFXOWLIQRWLPSRVVLEOHWRVD\WKDWWKHLQVWLQFWWRSRVVHVV
KDVEHHQURRWHGRXWRUWKDWLWZLOOQRWUHDSSHDULQDQHYHQZRUVHIRUPXQGHUDGLIIHUHQW
JXLVH ,W PD\ HYHQ EH WKDW OLNH D JDV NHSW FRQILQHG ZLWKLQ FRQWDLQHUV XQGHU JUHDW
SUHVVXUHRUZDWHUKHOGEDFNE\DELJGDPRQFHWKHEDUULHUEUHDNVWKHUHDFWLRQZLOORQH
GD\VZHHSEDFNZLWKDYLROHQFHHTXDOLQH[WHQWDQGLQWHQVLW\WRZKDWZDVXVHGWRHVWDEOLVK
DQGPDLQWDLQWKHRXWZDUGHJDOLWDULDQIRUP7KLVHQIRUFHGHJDOLWDULDQLVPFRQWDLQVLQLWV
ERVRPWKHVHHGRILWVRZQGHVWUXFWLRQ
7KHURRWFDXVHRIFODVVFRQIOLFWLVSRVVHVVLYHQHVVRUWKHDFTXLVLWLYHLQVWLQFW6RORQJDV
WKH LGHDO WKDW LV WR EH DFKLHYHG LV RQH RI VHFXULQJ WKH PD[LPXP PDWHULDO VDWLVIDFWLRQ
SRVVHVVLYHQHVVLVQHLWKHUVXSSUHVVHGQRUHOLPLQDWHGEXWJURZVRQZKDWLWIHHGV1RUGRHV
LWFHDVHWREHSRVVHVVLYHQHVVZKHWKHULWLVFRQILQHGWRRQO\DIHZRULVVKDUHGE\PDQ\
ϭϬϳ

,IHJDOLWDULDQLVPLVWRHQGXUHLWKDVWREHEDVHGQRWRQWKHSRVVHVVLRQRIWKHPD[LPXP
PDWHULDOJRRGVE\DIHZRUE\DOOEXWRQYROXQWDU\HQOLJKWHQHGUHQXQFLDWLRQRIWKRVHJRRGV
ZKLFKFDQQRWEHVKDUHGE\RWKHUVRUFDQEHHQMR\HGRQO\DWWKHH[SHQVHRIRWKHUV7KLV
FDOOVIRUVXEVWLWXWLRQRIPDWHULDOYDOXHVE\SXUHO\VSLULWXDORQHV7KHSDUDGLVHRIPDWHULDO
VDWLVIDFWLRQZKLFKLVVRPHWLPHVHTXDWHGZLWKSURJUHVVWKHVHGD\VQHLWKHUVSHOOVSHDFH
QRUSURJUHVV0DKDWPD*DQGKLKDVVKRZQXVKRZWKHDFTXLVLWLYHLQVWLQFWLQKHUHQWLQPDQ
FDQEHWUDQVPXWHGE\WKHDGRSWLRQRIWKHLGHDORIWUXVWHHVKLSE\WKRVHZKR
KDYH
IRUWKH
EHQHILWRIDOOWKRVHZKR
KDYHQRW
VRWKDWLQVWHDGRIOHDGLQJWRH[SORLWDWLRQDQGFRQIOLFWLW
ZRXOG EHFRPH D PHDQV DQG LQFHQWLYH IRU WKH DPHOLRUDWLRQ DQG SURJUHVV RI VRFLHW\
UHVSHFWLYHO\

$FFRUGLQJWRWKHSDVVDJHHJDOLWDULDQLVPZLOOQRWVXUYLYHLI
$ ,WLVEDVHGRQYROXQWDU\UHQXQFLDWLRQ
% ,WLVDFKLHYHGE\UHVRUWLQJWRSK\VLFDOIRUFH
& 8QGHUSULYLOHJHGSHRSOHDUHQRWLQYROYHGLQLWVHVWDEOLVKPHQW
' 3HRSOH
VRXWORRNWRZDUGVLWLVQRWUDGLFDOO\FKDQJHG
$FFRUGLQJWRWKHSDVVDJHZK\GRHVPDQYDOXHKLVSRVVHVVLRQVPRUHWKDQKLVOLIH"
$ +HKDVLQKHUHQWGHVLUHWRVKDUHKLVSRVVHVVLRQZLWKRWKHUV
% +HLVHQGRZHGZLWKWKHSRVVHVVLYHLQVWLQFW
& 2QO\KLVSRVVHVVLRQKHOSVKLPHDUQORYHDQGUHVSHFWIURPKLVGHVFHQGDQWV
' 7KURXJK KLV SRVVHVVLRQV KH FDQ SUHVHUYH KLV QDPH HYHQ DIWHU KLV
GHDWK

$FFRUGLQJWRWKHSDVVDJHZKLFKZDVWKHXQILQLVKHGSDUWRI*DQGKL
VH[SHULPHQW"
$ (GXFDWLQJSHRSOHWRDYRLGFODVVFRQIOLFW
% $FKLHYLQJWRWDOSROLWLFDOIUHHGRPIRUWKHFRXQWU\
& (VWDEOLVKPHQWRIDQHJDOLWDULDQVRFLHW\
' 5DGLFDOO\ FKDQJLQJ WKH PLQG DQG DWWLWXGH RI PHQ WRZDUGV WUXWK DQG
QRQYLROHQFH
:KLFKRIWKHIROORZLQJVWDWHPHQWVLV
QRWWUXH
LQWKHFRQWH[WRIWKHSDVVDJH"$7UXH
HJDOLWDULDQLVPFDQEHDFKLHYHGE\JLYLQJXSRQH
VSRVVHVVLRQVXQGHUFRPSXOVLRQ
% 0DQYDOXHVKLVOLIHPRUHWKDQKLVSRVVHVVLRQV&
3RVVHVVLYHLQVWLQFWLVDQDWXUDOGHVLUHRIKXPDQEHLQJV'
,QWKHSROLWLFDOVWUXJJOHWKHILJKWZDVDJDLQVWDOLHQUXOH
$FFRUGLQJWRWKHSDVVDJHWUXHHJDOLWDULDQLVPZLOOODVWRQO\LI
$ ,WLVWKUXVWXSRQSHRSOH
% ,WLVEDVHGRQWUXWKDQGQRQYLROHQFH
& 3HRSOHLQFXOFDWHVSLULWXDOYDOXHVLQVWHDGRIPDWHULDOYDOXHV
'
+DYHV
DQG
KDYHQRWV
OLYHWRJHWKHUSHDFHIXOO\
$FFRUGLQJWRWKHSDVVDJHSHRSOHXOWLPDWHO\RYHUWXUQDVRFLDORUGHU$ZKLFK
LVEDVHGRQFRHUFLRQDQGRSSUHVVLRQ
% ZKLFKGRHVQRWVDWLVI\WKHLUEDVLFQHHGV
& ZKLFKLVEDVHGXSRQFRQFLOLDWLRQDQGUDSSURFKHPHQW
' ZKLFKLVQRWFRQJHQLWDOWRWKHVSLULWXDOYDOXHVRIWKHSHRSOH
$FFRUGLQJWRWKHSDVVDJHWKHURRWFDXVHRIFODVVFRQIOLFWLV $ 7KH SDUDGLVH
RIPDWHULDOVDWLVIDFWLRQ
% 'RPLQDQWLQKHUHQWDFTXLVLWLYHLQVWLQFWLQPDQ
& ([SORLWDWLRQRIWKH
KDYHQRWV
E\WKH
KDYHV

' $6RFLDORUGHUZKHUHWKHXQSULYLOHJHGDUHQRWDSDUWRIWKHHVWDEOLVKPHQW
:KLFKRIWKHIROORZLQJVWDWHPHQWVLV
QRWWUXH
LQWKHFRQWH[WRIWKHSDVVDJH"
ϭϬϴ

$ $QHZRUGHUFDQEHHVWDEOLVKHGE\UDGLFDOO\FKDQJLQJWKHRXWORRNRISHRSOH
WRZDUGVLW
% $GRSWLRQRIWKHLGHDORIWUXVWHHVKLSFDQPLQLPL]HSRVVHVVLYHLQVWLQFW
& (QIRUFHGHJDOLWDULDQLVPFDQEHWKHFDXVHRILWVRZQGHVWUXFWLRQ' ,GHDO
RIQHZRUGHULVWRVHFXUHPD[LPXPPDWHULDOVDWLVIDFWLRQ
:KLFKRIWKHIROORZLQJFRQFOXVLRQVFDQEHGHGXFHGIURPWKHSDVVDJH"
$ $ VRFLDO RUGHU EDVHG RQ WUXWK DQG QRQYLROHQFH DORQH FDQ KHOS WKH
DFKLHYHPHQWRISROLWLFDOIUHHGRP
% $IWHU HVWDEOLVKLQJ WKH VRFLDO RUGHU RI *DQGKLML
V SDWWHUQ WKH SRVVLELOLW\ RI D
FRQIOLFW
EHWZHHQGLIIHUHQWFODVVHVRIVRFLHW\ZLOOKDUGO\H[LVW
& ,WLVGLIILFXOWWRFKDQJHWKHPLQGDQGDWWLWXGHRIPHQWRZDUGVSURSHUW\
' ,Q DQ HJDOLWDULDQ VRFLHW\ PDWHULDO VDWLVIDFWLRQ FDQ EH HQMR\HG RQO\ DW WKH
H[SHQVHRIRWKHUV
$FFRUGLQJ WR WKH SDVVDJH ZKDW GRHV DGRSWLRQ RI WKH LGHDO RI WUXVWHHVKLS PHDQ"
$ (TXDWLQJSHDFHDQGSURJUHVVZLWKPDWHULDOVDWLVIDFWLRQ
% $GRSWLRQRIWKHLGHDOE\WKH
KDYHV
IRUWKHEHQHILWRI¶KDYHQRWV·
& 9ROXQWDU\ HQOLJKWHQHG UHPXQHUDWLRQ RI WKH SRVVHVVLYH LQVWLQFW E\ WKH
SULYLOHJHGFODVV
' 6XEVWLWXWLRQ RI VSLULWXDO YDOXHV E\ PDWHULDO RQHV E\ WKRVH ZKR OLYH LQ WKH
SDUDGLVHRIPDWHULDOVDWLVIDFWLRQ

,QVWUXFWLRQVWR&KRRVHWKHFRUUHFWV\QRQ\PRXWRIWKHIRXUFKRLFHVJLYHQ
/HWKDUJ\
$ 6HUHQLW\ %OLVWOHVVQHVV &LPSDVVLYLW\'OD[LW\
(PDFLDWHG
$ WDOO%ODQJXLG &YHU\WKLQ'ZLVH
/DWHQW
$ FRQFHDOHG%DSSDUHQW&OHWKDUJLF'SURPSW
6SRUDGLF
$ HSLGHPLF%ZKLUOLQJ&RFFDVLRQDO'VWDJQDQW
&RPSHQGLXP
$ VXPPDU\%LQGH[&UHIHUHQFH'FROOHFWLRQ

,QVWUXFWLRQVWR&KRRVHWKHFRUUHFWRSWLRQRXWRIWKHIRXUFKRLFHVJLYHQ

*LYHDQH[DPSOHSHUWLQHQWBBBBBBBBBBBBBBWKHFDVH
$ ZLWK%RQ&IRU'WR
0\YRLFHUHYHUEHUDWHGBBBBBBBBBBBBBWKHZDOOVRIWKHFDVWOH
$ ZLWK%IURP&LQ'RQ
7KHUHZDUGZDVQRWFRPPHQVXUDWHBBBBBBBBBWKHZRUNGRQHE\XV
$ IRU%RQ&ZLWK'RUGHU
2XU WUDJLF H[SHULHQFH LQ WKH UHFHQW SDVW SURYLGHV DQ LQGH[ BBBBBBB WKH VWDWH RI
ODZOHVVQHVVLQWKLVUHJLRQ
$ RI%LQ & DW ' E\ <RXU FRQGXFW VPDFNV
BBBBBBBBBBBUHFNOHVVQHVV
$RI%ZLWK&IURP'LQ
$JRRGMXGJHQHYHUJURSHVBBBBBBBBBBBBWKHFRQFOXVLRQ
$ WR%DW&RQ'IRU
ϭϬϵ

1RERG\LQRXUJURXSLVDJHQLXVBBBBBBBBBZLQQLQJIULHQGVDQGLQFRQYLQFLQJSHRSOH
$ IRU%LQ&RI'DW
,I\RXDUHDYHUVHBBBBBBBBBUHFRPPHQGLQJP\QDPH\RXVKRXOGQRWKHVLWDWHWRDGPLW
LW
$ DERXW%IRU&WR'DJDLQVW5HOLJLRXVOHDGHUVVKRXOG
QRWGHOYHBBBBBBBBSROLWLFV
$LQ%ZLWK&DW'LQWR
:KDW \RX VD\KDVKDUGO\DQ\ EHDULQJ BBBBBBBB WKH OLYHV RI WULEDOV
$DERXW%IRU&RQ'ZLWK

,QVWUXFWLRQWR6HOHFWWKHFRUUHFWPHDQLQJRIWKH "@LGLRPVDQGSKUDVHVRXW
RIWKHIRXUFKRLFHVJLYHQ
+H8#!3E\LQWHUIHULQJLQKLVQHLJKERU·VDIIDLU$JRW
KLPVHOILQWRWURXEOH%EXUQWKLPVHOI
& JRWKLPVHOILQVXOWHG'JRWUHEXNHG
0U*XSWDZKRLVRQHRIWKHWUXVWHHVRIDELJFKDULW\LVVXVSHFWHG
RI!3
$EHLQJOD]\LQGRLQJKLVZRUN%EHLQJWRRJHQHURXV
& QHJOHFWLQJKLVMRE 'PDNLQJPRQH\XQIDLUO\
0UV+DVKPLKDVEHHQ8 #IRUWKHODVWVHYHUDOZHHNV
$DEURDG%XQZHOO&GHSUHVVHG'SHQQLOHVV
)RUWKHILUVWZHHNWKHDSSUHQWLFHIHOWOLNH!#!
$IUXVWUDWHG%KRPHOHVV&GLVDSSRLQWHG'XQFRPIRUWDEOH
+LVIULHQGVIDLOHGWRVHHZK\KHVKRXOG3MXVWEHFDXVHKHKDGZRQ
DQHOHFWLRQ
$EHFRPHDEQRUPDO %DSSHDUDUURJDQW
&LQGXOJHLQGUHDPV 'KDWHRWKHUV

,QVWUXFWLRQVWR*LYHQEHORZDUHWKHMXPEOHGVHQWHQFHVRIDSDUDJUDSK7KHILUVW
DQGWKHODVWVHQWHQFHRIWKHMXPEOHGSDUDJUDSKDUHJLYHQLQFRUUHFWRUGHU$UUDQJHWKH
PLGGOHVHQWHQFHVLQWKHFRUUHFWVHTXHQFH

L 2QRQHKDQGZHDUHSURXGRIEHLQJ,QGLDQV
LL RQWKHRWKHUKDQGZHEHKDYHDVLIZHZHUHVWLOODWWKHGDZQRIRXUFLYLOL]DWLRQ
LLLPXUGHUVRIRXURZQEURWKHUVDQGVLVWHUVLVQRWWKHZD\WRSOHDVH5DPRU
5DKLPLYWKHFLWL]HQVRIWKHODQGZKHUH%XGGKDDQG*DQGKLWDXJKWYWKH
SULQFLSOHVRIORYHDQGQRQYLROHQFHYLQRUGRHVLWIHWFKXVDQ\SURVSHULW\
$ LLLLLLYY % LLL LY Y LL & LY
YLLLLL 'LYYLLLLL

L 2QWKHEDVLVRIH[SHULPHQWVZLWKUDWVLL
KHDOWKH[SHUWVKHUHVD\WKDWLLLH[HUFLVHPRUH
DQGFRQVXPHYLWDPLQVLYWKH\ZLOOOLYHXSWR
\HDUVRUPRUHYLIKXPDQVHDWOHVVYLDQG
EHYLJRURXVLQWKHLUHLJKWLHVDQGQLQHWLHV
$ LLLLLYLY %LLYLLLLY&LLY
LYLLL 'YLLLLLLY

L 7KH UHOHDVH RI DWRPLF HQHUJ\ LV WKH JUHDWHVW DFKLHYHPHQW ZKLFK VFLHQFH KDV \HW
DWWDLQHG
ϭϭϬ

LLEXWWKHILUVWLQYHQWLRQWRZKLFKWKHLUGLVFRYHULHVZHUHDSSOLHGZDVDERPELLLWKH
DWRPZDVVSOLWE\SK\VLFLVWVZKRVHPLQGVZHUHVHWRQWKHVHDUFKIRUNQRZOHGJH
LY LWZDVPRUHGHDGO\WKDQDQ\RWKHUZHDSRQLQYHQWHGVRIDU
Y LWLVZLWKGUHDGWKDWVFLHQWLVWVUHJDUGWKHILUVWXVHWRZKLFKWKHLUJUHDWHVWGLVFRYHU\
ZDVSXW
YL KRZHYHU WKH\ DUH JUDWLILHG E\ WKH QXPHURXV DSSOLFDWLRQV RI DWRPLF HQHUJ\ IRU
SHDFHIXODQGFRQVWUXFWLYHSRSXODWLRQ
$ LLLLLLYY %YLLLLLLY
&LLLLLLYY 'LYYLLLLL

L 7KHSUREOHPRIIRRGLVLQWLPDWHO\FRQQHFWHGZLWK
SRSXODWLRQLLZDJHVZLOOVHOGRPULVHLQSURSRUWLRQWRWKHULVLQJ
SULFHVLLLWKHPDUNHWLVJRYHUQHGE\GHPDQGDQGVXSSO\
LY ZLWKRXWHQRXJKIRRGVXFKSHRSOHODFNKHDOWKVWUHQJWKRIHIILFLHQF\
Y LIWRRPDQ\SHRSOHGHPDQGJRRGVWRJRURXQGSULFHVZLOOULVHDQGSRRUFODVVHVZLOO
VWDUYH
YL WKH\IDOODQHDV\SUH\WRDOOVRUWVRIGLVHDVHV
$ LLLYLLLY % LL LLL LY Y & LY
LLYLLL 'YLLLLYLL

L ,QGLD
VPHVVDJHKDVDOZD\VEHHQRQHRIORYHDQGSHDFH
LL RXU%XGGKDZDVWKHOLJKWRI$VLD
LLL LWKDVEHHQDVRXUFHRIOLJKWDQGZLVGRPWRWKHUHVWRIWKHZRUOG
LY $VKRNDPRYHGE\WKHKRUURUVRI.DOLQJD:DUDGRSWHGWKHPHVVDJHRIQRQYLROHQFH
Y WKHJUHDWHVWDSRVWOHRIQRQYLROHQFHLQUHFHQW\HDUVZDV0DKDWPD*DQGKLYLKHVKRRN
WKHIRXQGDWLRQRIWKH%ULWLVKUXOHLQ,QGLDWKURXJKQRQYLROHQFH
$LLYLLLLY %LYLLLLLY
&YLYLLLLL 'LLLLLLYY
,QVWUXFWLRQVWR*LYHQEHORZDUHDIHZFRPPRQO\XVHGIRUHLJQODQJXDJHSKUDVHV
VHOHFWWKHFRUUHFWDQVZHUIURPWKHIRXURSWLRQVJLYHQEHORZ
0DODILGH
$JHQHURXV %EDGLQWHQWLRQ
&WUXVWZRUWK\ 'JHQXLQH
7DEXODUDVD
$FOHDQVODWH %DJLWDWHG
&GHSULYHG 'FUHDWLYH
&DUWHEODQFKH
$VODYHU\ %FRPSOHWHGLVFUHWLRQ
&DQDUFK\ 'GHSHQGHQW
'HMXUH
$LOOHJDO %KHLU
&FRQFHUQLQJODZ 'IRUELGGHQ
5DLVRQG·HWUH
$ORJLFDOFRQFOXVLRQ %UHDVRQIRUH[LVWHQFH
&IUHHFKRLFH 'GXELRXVDUJXPHQW

*(1(5$/.12:/('*(&855(17$))$,56
:KRVDLGWKDW¶0DQLVDVRFLDODQLPDO·"
$ 6RFUDWHV %$ULVWRWOH &.DKQ '3ODWR
ϭϭϭ

:RUOG&RPSXWHU/LWHUDF\GD\LVFHOHEUDWHGRQ
$ 1RYHPEHU%1RYHPEHU&'HFHPEHU '-XO\
:KRVHWHDFKLQJLQVSLUHGWKH)UHQFK5HYROXWLRQ"
$ 5RXVVHDX%/RFNH &+HJHO ':DJQHU
7KH,,$IULFD,QGLD6XPPLWZDVKHOGLQ0D\LQ
$ 1HZ'HOKL%/DJRV &1DLUREL '$GGLV$EDED
7KHIDPRXV$NVKDUGKDPWHPSOHLVVLWXDWHGLQWKHFLW\RI
$ -DPQDJDU%*DQGKLQDJDU&-DPPX '0DGXUDL
:KRRXWRIWKHIROORZLQJZDVWKHUHFLSLHQWRI'K\DQ&KDQG$ZDUGLQ"
$ 6DWLVK3LOODL%+XNDP6LQJK&6KDEELU$OL ' 0XNK %DLQ 6LQJK
1DPHWKHDQQXDOIDLURI5DMDVWKDQWKDWLVIDPRXVIRULWVFDPHOWUDGLQJHYHQW
$ 0DUX0HOD%3XVKNDU0HOD&6XUDM.XQG0HOD'6RQHSXU0HOD
7KHWK*VXPPLWZLOOEHKHOGLQLQ
$ 86$%8. &*HUPDQ\'&DQDGD
:KRZDVDZDUGHGWKH1REHO3UL]HIRUOLWHUDWXUHLQ"
$ 3DXO/DXWHUEXU%%LOO&OLQWRQ&7RPDV7UDQVWURPHU'6KLULQ(EDGL
:KRZDVDZDUGHGWKH81(6&2.LQJ6HMRQJ/LWHUDF\3UL]HLQ"
$ 1HOVRQ0DQGHOD %1DWLRQDO/LWHUDF\6HUYLFH%XUXQGL
&0HGKD3DWNDU '1DWLRQDO/LWHUDF\0LVVLRQ,QGLD
'HFHPEHULVREVHUYHGDV
$ :RUOG+HDOWK'D\ %81'D\&5HG&URVV'D\ '
+XPDQ5LJKWV'D\
:KLFKLVWKHODUJHVWJODQGLQKXPDQERG\"
$ 3DQFUHDV%/LYHU &7K\URLG'3LWXLWDU\
7KHERRNWLWOHG¶7KH*RRJOH6WRU\·KDVEHHQDXWKRUHGE\
$ 'DYLG$9LFH%6KREKD'H\&)UHGULFN)RUV\WK'9LNUDP6HWK

:KLFKVWUDLWVHSDUDWHV(XURSHIURP$IULFD
$ 0DOODLFD %*LEUDOWHU &%HUULQJ'3DON
7DLZDQZDVHDUOLHUNQRZQDV
$ )XFKRZ %0DUVKDOO,VODQG&)RUPRVD '0DFDX
,GHQWLI\WKH,QGLDQ7HQQLVSOD\HUZKRKDVWXUQHG+ROO\ZRRGILOPPDNHU"
$ 9LMD\$PULWUDM%0DKHVK%KXSDWKL&/HDQGHU3DHV'$VKRN$PULWUDM
:KHUHZLOOWKHQH[W2O\PSLF*DPHVEHKHOGLQ"
$ 7RN\R %%HUOLQ &/RQGRQ '7RURQWR
:KLFKRIWKHIROORZLQJWHDPVKDVZRQWKH6DQWRVK7URSK\)RRWEDOO&KDPSLRQVKLS
LQ"
$ 3XQMDE %:HVW%HQJDO &*RD '5DLOZD\V
([FHVVRIPRQH\VXSSO\DVFRPSDUHGWRVXSSO\RIJRRGVUHVXOWVLQ
$ 'HSUHVVLRQ%'HIODWLRQ &7UDGHGHILFLW',QIODWLRQ
7KHODUJHVWOLYLQJIOLJKWOHVVELUGLV
$ (PX %.LZL &2VWULFK '3HQJXLQ
:KLFKRIWKHIROORZLQJRFHDQVKDVWKHVKDSHRIWKH(QJOLVKOHWWHU¶6·"
$ $WODQWLF %3DFLILF &,QGLDQ '$UFWLF
:KLFKLVWKHORQJHVWVKLSSLQJFDQDOLQWKHZRUOG"
$ 3DQDPD&DQDO %6XH]&DQDO
&:KLWH6HD%DOWLF&DQDO '.LHO&DQDO
/H&RUEXVLHUWKHDUFKLWHFWRI&KDQGLJDUKZDVDQDWLRQDORI
$ %ULWDLQ %3RUWXJDO &)UDQFH '1HWKHUODQGV
,QGLDEHFDPHDPHPEHURI812LQ
ϭϭϮ

$ % & '

7RZKLFKFRXQWU\GRHV,QGLDH[SRUWWKHODUJHVWTXDQWLW\RILURQRUH"
$ 86$ %-DSDQ &(J\SW '*HUPDQ\
7KHORQJHVWKLJKZD\LQ,QGLDUXQVIURP
$ .RONDWDWR-DPPX %6KLOORQJWR$PULWVDU
&$PEDODWR1DJHUFRLO '9DUDQDVLWR.DQ\DNXPDUL
7KHORQJHVWLUULJDWLRQFDQDOLQ,QGLDLVFDOOHG
$ 8SSHU%DUL'RDE&DQDO %,QGLUD*DQGKL&DQDO
&6LUKLQG&DQDO '<DPXQD&DQDO
/HXNHPLDLVDGLVHDVHUHODWHGWR
$ .LGQH\ %7KURDW &%ORRG '(\HV
,QZKLFKFLW\ZDV2VDPD%LQ/DGHQNLOOHGLQ0D\"
$ ,VODPDEDG%$EERWWDEDG &)DLVDODEDG '3HVKDZDU
7KH;,)LYH<HDU3ODQHQYLVDJHGWKHKLJKHVWJURZWKLQWKHVHFWRURI
$ ,QGXVWU\ %$JULFXOWXUH &6HUYLFHV'0DQXIDFWXULQJ
/LJKW\HDULVDXQLWRI
$ 'LVWDQFH%7LPH &6RXQG '/LJKWLQWHQVLW\
7KH,9VXPPLWRI%5,&6ZDVKHOGLQ1HZ'HOKLRQ
$ WK-DQXDU\ %VW$SULO
&WK0DUFK 'WK)HEUXDU\
$QLQGLJHQRXVQXFOHDUVXEPDULQHVWLOOXQGHUFRQVWUXFWLRQKDVEHHQQDPHGDV
$ &KDNUD %6XGDUVKDQ &$ULKDQW'*KDDWDN
*RYHUQPHQW RI ,QGLD KDV ODXQFKHG D SXEOLFLW\ FDPSDLJQ IRU FHQVXV LQ
DVVRFLDWLRQZLWKZKLFKRIWKHIROORZLQJ81RUJDQL]DWLRQ"
$ 8QLWHG1DWLRQV'HYHORSPHQW3URJUDPPH81'3
% :RUOG+HDOWK2UJDQL]DWLRQ:+2
& 8QLWHG1DWLRQV&KLOGUHQ·V)XQG81,&()
' 8QLWHG1DWLRQV3RSXODWLRQ)XQG813)
0DKDWPD *DQGKL 1DWLRQDO 5XUDO (PSOR\PHQW *XDUDQWHH $FW 0*15(*$
FRPSOHWHGKRZPDQ\\HDUVRIRSHUDWLRQLQ"
$ \HDUV %\HDUV &\HDUV '\HDUV
7KHILUVWHYHUIRUPXODRQHUDFHLQ,QGLDZDVKHOGLQ
$ *UHDWHU1RLGD %1HZ'HOKL &)DULGDEDG '3XQH
1DPHWKHDFWRUZKRKDVEHHQKRQRXUHGZLWKWKH'DGDVDKHE3KDONH$ZDUGLQ
$ 1DVHHUXGLQ6KDK %.DPDO+DVDQ
&6RXPLWUD&KDWWHUMHH '$PRO3DOHNHU
,QZKLFKFLW\ZDVWKH$UDE6XPPLWKHOGLQWKHODVWZHHNRI0DUFK"
$ %DJGDG %&DLUR &%HLUXW '5L\DGK
7KHWZR6XSUHPH&RXUW-XGJHVZKRGHOLYHUHGWKHIDPRXV*MXGJPHQWLQ)HEUXDU\
ZHUH
$ -XVWLFH*66LQJKYLDQG-XVWLFH*\DQ6XGKD0LVKUD
% -XVWLFH*66LQJKYLDQG-XVWLFH$.*DQJXO\
& -XVWLFH6+.DSDGLDDQG-XVWLFH$.*DQJXO\
' -XVWLFH&KDQGUDPDXOL.XPDU3UDVDGDQG-XVWLFH+/*RNKDOH
:KRSUHVLGHVRYHUWKHMRLQWVLWWLQJRIERWKKRXVHVRI3DUOLDPHQW"
$ 6SHDNHURI/RN6DEKD %3UHVLGHQW
&&KDLUPDQRI5DM\D6DEKD'3ULPH0LQLVWHU
&KULVWLDQ/DJDUGHKHDGVWKH
$ :RUOG%DQN%81,&()&,QWHUQDWLRQDO0RQHWDU\)XQG':+2
ϭϭϯ

7KHVHDWRI,QWHUQDWLRQDO&ULPLQDO&RXUWLVDW
$ 7KH+DJXH %*HQHYD &:DVKLQJWRQ '7RN\R
)LUVW,QGLDQWRVNLWR1RUWK3ROHLV
$ $UXQ1D\\DU%$MHHW%DMDM&6T/GU6DQMD\7KDSDU '1HDO3DUDPMHHW
)LUVWZRPDQ'LUHFWRU*HQHUDORI3ROLFHLQ,QGLDZDV
$ .DQFKDQ&KRXGKDU\ %.DYLWKD&KRXGKDU\
&.LUDQ%HGL '$VZDWK\7RQJH
:KLFKFRXQWULHVFRKRVWHGWKH2QHGD\FULFNHW:RUOG&XSLQ"
$ ,QGLD%DQJODGHVKDQG6UL/DQND
% ,QGLD%DQJODGHVKDQG3DNLVWDQ
& ,QGLD6UL/DQNDDQG3DNLVWDQ
' ,QGLD6UL/DQND%DQJODGHVKDQG3DNLVWDQ
3UL\DQND&KRSUDKDVEHHQQDPHG1DWLRQDO$PEDVVDGRURI
$ :+2%81,&()&81(6&2',QWHUQDWLRQDO5HG&URVV6RFLHW\
:KR LV OHDGLQJ LQ WKH 5HSXEOLFDQ SULPDULHV WR FRQWHVW WKH $PHULFDQ 3UHVLGHQWLDO
HOHFWLRQVFKHGXOHGLQ1RYHPEHU"
$ 6DUD3DOLQ%1HZW*LQJULFK&5LFN6DQWRUXP'0LWW5RPQH\
6XSUHPH &RXUW UHFHQWO\ GHFODUHG ¶6DOYD -XGXP· XQFRQVWLWXWLRQDO :KDW LV ¶6DOYD
-XGDP·"
$ $WHUURULVWRXWILW
% $QDUPHGFLYLOLDQJURXSIRUPHGWRFRPEDW0DRLVWV
& $PRQH\FKDLQEXVLQHVV
' &XVWRPRINLOOLQJDJLUOIRULQWHUFDVWHPDUULDJHLQWKHQDPHRIKRQRXU
$V SHU WKH ,QGLDQ 8QLRQ %XGJHW RI WKH LQFRPHWD[ H[HPSWLRQ OLPLW IRU
SHUVRQVEHORZ\HDUVRIDJHLV
$ 5V%5V &5V '5V
7KH81&OLPDWH&KDQJH&RQIHUHQFHZDVKHOGLQ
$ 1HZ'HOKL%'RKD &'XUEDQ '*HQHYD

(/(0(17$5<0$7+(0$7,&6180(5,&$%,/,7<

3VHOOVDWDEOHWR4DWDSURILWRIDQG4VHOOVLWWR5DWDSURILWRI,I5SD\V
5VIRULWWKHQKRZPXFKKDG3SDLGIRULW"
$ % & '

7KHOHDVWYDOXHRI[IRUZKLFKWKHH[SUHVVLRQ[[ZLOOQRWJLYHDSULPHQXPEHU
LV
$ % & '

$WUDLQPHWHUVORQJLVUXQQLQJDWDVSHHGRIPHWHUVSHUVHFRQGLWZLOOFURVV
DEULGJHPHWHUVORQJLQ
$ VHFRQGV %VHFRQGV &VHFRQGV '
VHFRQGV

,IRIDQXPEHULVWKHQRIWKDWQXPEHULV
$ % & '

ϭϭϰ

$VXPZDVGLYLGHGDPRQJ34 55JRWGRXEOHWKDQ3ZKRJRWGRXEOHWKDQ4,I

WKHGLIIHUHQFHEHWZHHQWKHVKDUHVRI4DQG5LV5VWKHQWKHVXPLQUXSHHV
LV
$ % & '

,IWKHUDWLRRIWKHDUHDVRIWZRVTXDUHVLVWKHQWKHUDWLRRIWKHLUSHULPHWHUVLV
$ % & '

7KHGHQRPLQDWRURIDIUDFWLRQLVJUHDWHUWKDQLWVQXPHUDWRUE\,ILVDGGHGWR
ERWKLWVQXPHUDWRUDQGGHQRPLQDWRUWKHQLWEHFRPHVö7KHIUDFWLRQLV
$ % & '

7KHYDOXHRI ZKHUH[ ¥DQG\ ¥LV
$ % & '

,IWKHYROXPHRIDVSKHUHLVGLYLGHGE\LWVVXUIDFHDUHDZHREWDLQFP7KHUDGLXV
RIWKHVSKHUHLV
$ FP %FP &FP 'FP
2QHWKLUGRIRQHIRXUWKRIDQXPEHULV7KHQWKHQXPEHULV
$ % & '

,QWKHQXPEHUVHULHVWKHZURQJQXPEHULV
$ % & '
7KHSULFHRIWURXVHUVDQGVKLUWVLV5V:LWKWKHVDPHDPRXQWRQHFDQ
EX\WURXVHUDQGVKLUWV,IRQHZDQWVWREX\VKLUWVKHKDVWRSD\
$ 5V %5V&5V'5V

,I WKHYDOXHRI LV
$ GHDOHU EX\V DQ DUWLFOH IRU 5V :KDW SULFH VKRXOG KH PDUN VR WKDW DIWHU
DOORZLQJDGLVFRXQWRIKHVWLOOPDNHVDSURILWRIRQWKHDUWLFOH"
$ 5V %5V &5V '5V

,QDIDFWRU\WKHSURGXFWLRQRIVFRRWHUVURVHWRIURPLQ\HDUV7KH
UDWHRIJURZWKSHUDQQXPLV
$ % & '

,I WKHQ ZLOOEH
$ % & '
ϭϭϱ

:KHQ[[[[LVGLYLGHGE\[WKHTXRWLHQWDQGWKHUHPDLQGHU

7KH VXP RI WZR QXPEHUV LV ,I RI RQH QXPEHU LV HTXDO WR RI WKH
RWKHUWKHQXPEHUVDUH
$ DQG %DQG
&DQG 'DQG
PHQKDGIRRGSURYLVLRQIRUGD\V$IWHUGD\VPHQGLHGRIDQHSLGHPLF
7KHIRRGZLOOODVWIRUIXUWKHU
$ GD\V %GD\V&GD\V 'GD\V

2XW RI WKH WRWDO LQFRPH ; VSHQGV RQ KRXVH UHQW DQG RI WKH UHPDLQLQJ
DPRXQWRQKRXVHKROGH[SHQGLWXUH,I;VDYHV5VWKHWRWDOLQFRPHLV
$ 5V %5V&5V'5V

/2*,&$/5($621,1*
,QVWUXFWLRQVWR*LYHQEHORZDUHVRPHVWDWHPHQWVIROORZHGE\WZRDUJXPHQWV
5HDGFDUHIXOO\DQGGHFLGHZKLFKRIWKHDUJXPHQWVVWURQJO\VXSSRUWWKHVWDWHPHQW

6WDWHPHQW6KRXOGWKHSD\VFDOHDQGFRQGLWLRQVRIVHUYLFHRIJRYHUQPHQWHPSOR\HHV
EHPDGHDSSOLFDEOHWRSULYDWHVHFWRUHPSOR\HHV"
$UJXPHQWV
L 1R WKLV ZLOO GHYHORS LQHUWLD LQHIILFLHQF\ DQG ZRXOG DGYHUVHO\ DIIHFW VSLULW RI
FRPSHWLWLRQ
LL <HVWKLVZLOOHQKDQFHGHGLFDWLRQWRZRUNDQGLQVWLWXWLRQDOOR\DOW\

$ $UJXPHQWLLVVWURQJ %$UJXPHQWLLLVVWURQJ
&%RWKLDQGLLDUHVWURQJ '1HLWKHULQRULLLVVWURQJ
6WDWHPHQW 6KRXOG D VWURQJ LQVWLWXWLRQ RI RPEXGVPDQ EH FUHDWHG LQ ,QGLD"
$UJXPHQWV
L <HVWKLVZLOOEULQJWUDQVSDUHQF\DQGDFFRXQWDELOLW\LQWKHDGPLQLVWUDWLRQ
LL 1RWKLVZLOOGHYHORSODFNRILQLWLDWLYHDQGIOH[LELOLW\LQWKHDGPLQLVWUDWLRQ

&%RWKLDQGLLDUHVWURQJ '1HLWKHULQRULLLVVWURQJ
6WDWHPHQW 6KRXOG LQWHUQDO DVVHVVPHQW LQ FROOHJHV DQG XQLYHUVLWLHV EH DEROLVKHG"
$UJXPHQWV
L <HVWKLVZLOOHOLPLQDWHWKHSRVVLELOLW\RIIDYRULWLVP
LL 1RWHDFKLQJIDFXOW\ZLOOORVHFRQWURORYHUWKHVWXGHQWVDQGWKLVZRXOGDGYHUVHO\DIIHFW
WKHLUDFDGHPLFJURZWK

&%RWKLDQGLLDUHVWURQJ'1HLWKHULQRULLLVVWURQJ
ϭϭϲ

6WDWHPHQW 6KRXOG PLOLWDU\ WUDLQLQJ EH PDGH FRPSXOVRU\ IRU DOO FROOHJH DQG
XQLYHUVLW\VWXGHQWV"
$UJXPHQWV
L <HVWKLVZLOOGHYHORSLQWKHPDVHQVHRISXQFWXDOLW\DQGGLVFLSOLQH
LL 1RPLOLWDU\WUDLQLQJVKRXOGEHJLYHQRQO\WRWKRVHVWXGHQWVZKRDUHSK\VLFDOO\ILW

6WDWHPHQW6KRXOGVWXGHQWV·XQLRQLQFROOHJHVDQGXQLYHUVLWLHVEHDEROLVKHG"
$UJXPHQWV
L <HVLWGHWUDFWVVWXGHQWVIURPDFDGHPLFDQGFDUHHUGHYHORSPHQWLL
1RDOOJUHDWOHDGHUVKDYHEHHQVWXGHQWV·XQLRQOHDGHUV

6WDWHPHQW 6KRXOG WKH DJH RI PDUULDJH EH UDLVHG WR \HDUV IRU ER\V DQG IRU
JLUOV"
$UJXPHQWV
L 1RLWLVGLIILFXOWWRFKDQJHDVRFLDOSUDFWLFHLQ,QGLDQFRQGLWLRQV
LL <HV E\ WKDW DJH SHRSOH GHYHORS D VHQVH RI UHVSRQVLELOLW\ DQG DOVR FRPSOHWH WKHLU
HGXFDWLRQ


,QVWUXFWLRQVWR(DFKTXHVWLRQFRQWDLQVVL[VWDWHPHQWVIROORZHGE\IRXUVHWVRI
FRPELQDWLRQRIWKUHH&KRRVHWKHVHWLQZKLFKWKHVWDWHPHQWVDUHORJLFDOO\UHODWHG
6WDWHPHQWV
L ;DQG<DUHVLEOLQJV
LL ;DQG<GRQRWTXDUUHO
LLL 6LEOLQJVDUHNQRZQWRTXDUUHORIWHQ
LY ;DQG<TXDUUHORIWHQ
Y $OOWKRVHZKRTXDUUHODUHVLEOLQJV
YL ;DQG<FDQQRWEHVLEOLQJV

$LLLYY%LLYYL&LLLLLY6WDWHPHQWV 'LLLY
L $OOPDQJRHVDUHIUXLWV
LL $OOPDQJRHVDUHJUHHQ
LLL $OOPDQJRHVDUHRYDOVKDSHG
LY $OOIUXLWVDUHVZHHW
Y $OOPDQJRHVDUHVZHHW
YL $OOIUXLWVDUHH[SHQVLYH

ϭϭϳ

$ LLLLLL%LLYY&LLLLLLY6WDWHPHQWV 'LYYYL

L $OOIURJVDUHDPSKLELDQV
LL $OODPSKLELDQVDUHQRWIURJV
LLL $OODPSKLELDQVDUHFROGEORRGHG
LY $OOIURJVOD\HJJV
Y $OODPSKLELDQVOD\HJJV
YL )URJVDUHFROGEORRGHG

$ LLLLYL%LLYY&LLLY6WDWHPHQWV 'LLYLY

L 6RPHPHQDUHRIVKRUWKHLJKW
LL 6KRUWKHLJKWHGPHQDUHLQWHOOLJHQW
LLL 6XGKLULVDPDQ
LY 6XGKLULVRIVKRUWKHLJKW
Y 6XGKLULVLQWHOOLJHQW
YL $OOPHQDUHLQWHOOLJHQW

$LLLYL %LLLLYLL &LLLYY 'LLLYYL

,QVWUXFWLRQVWR2IWKHIRXUDOWHUQDWLYHVJLYHQLQHDFKRIWKHIROORZLQJTXHVWLRQV
ILQGWKHRQHZKLFKLVGLIIHUHQWIURPWKHUHVW

$)DVW6ORZ %%ULJKW'DUN &'D\1LJKW '9DOOH\'HSWK

$%RG\+DQG %)RRW$QNOH &(\H(DU':ULVW)LQJHU
$6QDNH)URJ %*RDW+HQ &'RJ&DW '7LJHU'HHU

,QVWUXFWLRQV (DFK TXHVWLRQ EHORZ KDV WZR VWDWHPHQWV IROORZHG E\ IRXU
FRQFOXVLRQV,,,,,,DQG,9<RXKDYHWRDFFHSWWKHJLYHQVWDWHPHQWVWREHWUXHHYHQLI
WKH\DSSHDUWREHDWYDULDQFHIURPFRPPRQO\NQRZQIDFWV5HDGDOOWKHFRQFOXVLRQVDQG
WKHQGHFLGHZKLFKRIWKHJLYHQFRQFOXVLRQVORJLFDOO\IROORZVIURPWKHWZRVWDWHPHQWV

6WDWHPHQW2QH$OOJLUOVDUHVWXGHQWV
6WDWHPHQW7ZR$OOGRFWRUVDUHVWXGHQWV
&RQFOXVLRQV
, $OOJLUOVDUHVWXGHQWV
,, 6RPHVWXGHQWVDUHJLUOV
,,, 6RPHVWXGHQWVDUHGRFWRUV
,9 $OOGRFWRUVDUHJLUOV

$ 2QO\,IROORZV
% 2QO\,DQG,,IROORZV
& 2QO\,,DQG,9IROORZ
' 2QO\,DQG,,DQG,,,IROORZV

6WDWHPHQW2QH$OOUHVHDUFKHUVDUHVRFLRORJLVWV
6WDWHPHQW7ZR6RPHUHVHDUFKHUVDUHSURIHVVRUV
ϭϭϴ

&RQFOXVLRQV
, $OOUHVHDUFKHUVDUHSURIHVVRUV
,, 6RPHUHVHDUFKHUVDUHSURIHVVRUV
,,, 6RPHSURIHVVRUVDUHVRFLRORJLVWV
,9 6RPHVRFLRORJLVWVDUHUHVHDUFKHUV

$ 2QO\,,,DQG,,IROORZ% 2QO\,,DQG,9IROORZ
& 2QO\,,,IROORZV
' 1RQHIROORZV
6WDWHPHQW2QH6RPHGHPRFUDFLHVDUHGLFWDWRUVKLS
6WDWHPHQW7ZR1RGLFWDWRUVKLSLVDPRQDUFK\
&RQFOXVLRQV
, 1RGHPRFUDF\LVDPRQDUFK\
,, 1RGLFWDWRUVKLSLVDGHPRFUDF\
,,, 6RPHGHPRFUDFLHVDUHPRQDUFK\
,9 6RPHGLFWDWRUVKLSVDUHGHPRFUDFLHV

$ 1RQHIROORZV
% 2QO\,9IROORZV& ,,DQG,,,IROORZ
' ,DQG,9IROORZ

,QVWUXFWLRQVWR7KHIROORZLQJTXHVWLRQVFRPSULVHRIRQHRUPRUHVWDWHPHQWV
$QVZHU WKH TXHVWLRQV RQ WKH EDVLV RI WKH JLYHQ VWDWHPHQWV $FFHSW WKH IDFWXDO
DVVXPSWLRQVUHTXLUHGE\WKHTXHVWLRQHYHQLI\RXEHOLHYHWKDWWKHVWDWHPHQWLVIDOVH

6WDWHPHQWV
, &KHHVHLVEDGIRUSHRSOHZLWKKLJKFKROHVWHURO
,, 6XPHHWGRHVQRWHDWFKHHVH
$VVXPLQJWKDWLDQGLLDUHWUXHZKLFKRIWKHIROORZLQJVWDWHPHQWIROORZV"
$ 6XPHHWKDVKLJKFKROHVWHURO
% &KHHVHLVEDGIRU6XPHHW
& 3HRSOHZLWKKLJK&KROHVWHUROGRQRWHDWFKHHVH
' 1RQHRIWKHDERYH
6WDWHPHQW
,'HPRFUDWVDUHVHFXODULVWV
$ 0\IDWKHULVDVHFXODULVWEXWKHLVQRWDGHPRFUDW
% 0\IDWKHULVDGHPRFUDWEXWKHLVQRWVHFXODULVW
& 0\IDWKHULVDGHPRFUDWDQGKHLVVHFXODULVW
' 0\IDWKHULVQHLWKHUDGHPRFUDWQRUDVHFXODULVW
6WDWHPHQW
´:KHUHWKHUHLVDFORXGWKHUHLVDUDLQµ:KLFKRIWKHIROORZLQJVWDWHPHQWVLIWUXHZRXOG
VKRZWKDWWKHDERYHVWDWHPHQWLVIDOVH"
$ 6RPHWLPHV WKHUH LV FORXG EXW WKHUH LV QR UDLQ % 6RPHWLPHV WKHUH LV UDLQ EXW
WKHUHLVQRFORXG
& 7KHUHLVQRUDLQZKHUHWKHUHLVQRFORXG
' 1RQHRIWKHDERYH

,QVWUXFWLRQVWR
5HDGWKHIROORZLQJLQIRUPDWLRQFDUHIXOO\DQGWKHQDQVZHUWKHTXHVWLRQV
ϭϭϵ

)RXUIULHQGV:;<DQG=DUHVWXGHQWVRI&ODVVWK:DQG;DUHJRRGLQ+LQGLEXWSRRU
LQ(QJOLVK:DQG<DUHJRRGLQ6FLHQFHEXWSRRULQ0DWKHPDWLFV<DQG=DUHJRRGLQ
(QJOLVKEXWSRRULQ6RFLDO6WXGLHV=DQG;DUHJRRGLQ0DWKHPDWLFVDVZHOODVLQ6FLHQFH
:KRDPRQJVWWKHIROORZLQJIULHQGVLVQRWJRRGLQ0DWKHPDWLFVEXWJRRGLQ+LQGL"
$ : %< &; '=
:KLFKRIWKHIROORZLQJSDLUVRIIULHQGVDUHJRRGERWKLQ(QJOLVKDQG6FLHQFH"
$ :DQG<%:DQG=&<DQG='=DQG;:KLFK
RIWKHIROORZLQJVWDWHPHQWVLVGHILQLWHO\WUXH"
$ <DQG=DUHJRRGLQ(QJOLVKDVZHOODVLQ+LQGL
% $OOIRXUIULHQGVDUHJRRGLQ6FLHQFH
& :LVJRRGLQ6RFLDO6WXGLHV+LQGLDQG6FLHQFH
' <LVQRWJRRGLQ0DWKHPDWLFV+LQGLDQG6RFLDO6WXGLHV
,QVWUXFWLRQV WR 6HOHFW WKH VWDWHPHQW ZKLFK ORJLFDOO\ IROORZV WKH WZR JLYHQ
VWDWHPHQWV
6WDWHPHQWV
, 1RDWKOHWHVDUHYHJHWDULDQV
,, $OOSOD\HUVDUHDWKOHWHV
,,, 7KHUHIRUH
$ QRSOD\HUVDUHYHJHWDULDQV %DOOSOD\HUVDUHYHJHWDULDQ&VRPH
SOD\HUVDUHYHJHWDULDQ 'DOOYHJHWDULDQVDUHSOD\HUV
6WDWHPHQWV
, $OOSHUVRQVZKRKDYHGRQHDQ\FUHDWLYHZRUNFDQEHUHVSRQVLEOHFULWLFV
,, =KDVQRWGRQHDQ\FUHDWLYHZRUN
,,, 7KHUHIRUH
$=FDQEHDUHVSRQVLEOHFULWLF%=FDQQRWEHDUHVSRQVLEOHFULWLF&=
FDQEHFRPHDUHVSRQVLEOHFULWLF'=FDQQRWEHFRPHDUHVSRQVLEOHFULWLF
6WDWHPHQW
,2QHZKRKDVVTXDUHGDFLUFOHLVQRWDPDWKHPDWLFLDQ
,,7KHUHIRUH
$ 1RRQHZKRKDVVTXDUHGDFLUFOHLVDPDWKHPDWLFLDQ
% $OOQRQPDWKHPDWLFLDQVKDYHVTXDUHGDFLUFOH
& 6RPHPDWKHPDWLFLDQVKDYHVTXDUHGDFLUFOH
' $OOPDWKHPDWLFLDQVVTXDUHDFLUFOH
6WDWHPHQW 7KH 6XSUHPH &RXUW RI ,QGLD LV HQFRXUDJLQJ 3XEOLF ,QWHUHVW /LWLJDWLRQ
5HDVRQV
, 7RLQFUHDVHWKHUHDFKRIMXVWLFHWRWKHGLVDGYDQWDJHGVHFWLRQVRIVRFLHW\
,, 7RTXLFNHQWKHSDFHRI-XVWLFH
,GHQWLI\WKHFRUUHFWUHDVRQIRUWKHDIRUHPHQWLRQHGVWDWHPHQW

$ %RWK,DQG,,DUHFRUUHFWUHDVRQVRIWKHVWDWHPHQW
% ,LVWKHFRUUHFWUHDVRQRIWKHVWDWHPHQW
& %RWK,DQG,,DUHQRWFRUUHFWUHDVRQVRIWKHVWDWHPHQW
' ,,LVWKHFRUUHFWUHDVRQRIWKHVWDWHPHQW
<RJDKDVEHFRPHDYHU\SRSXODUH[HUFLVHEXWLWPD\QRWEHIRUHYHU\RQH,I\RXDUH
LQWHUHVWHGLQKLJKHQHUJ\DQGIDVWZRUNRXWV\RJDPD\QRWEHWKHEHVWFKRLFH
7KHUHIRUHHYDOXDWH\RXUILWQHVVUHTXLUHPHQWEHIRUHMRLQLQJ\RJDFODVVHV7KLV
SDUDJUDSKEHVWVXSSRUWVWKHVWDWHPHQWWKDW
$ <RJDLVPRUHSRSXODUWKDQKLJKHQHUJ\H[HUFLVH
% <RJDLVFKDQJLQJWKHFRQFHSWRIILWQHVVLQYDULRXVZD\V
& %HIRUHRSWLQJIRU<RJDDVVHVV\RXUILWQHVVUHTXLUHPHQWV
ϭϮϬ

' <RJDLVDKROLVWLFILWQHVVUHJLPH
6WDWLVWLFVDOORZVXVWRXQGHUVWDQGWKHUHDOLW\,WLQGLFDWHVGHYHORSPHQWDOGLUHFWLRQV
6WDWLVWLFVLVJRRGIRUH[SRVLQJUHDOLW\EXWLWFDQDOVREHPDQLSXODWHGWRSHUSHWXDWH
XQWUXWKDQGPLVXQGHUVWDQGLQJ'DWDKDVSRZHUWRPLVOHDGSHRSOH
7KLVSDUDJUDSKEHVWVXSSRUWVWKHVWDWHPHQWWKDW
$ :RUGVDUHPRUHWUXWKIXOWKDQQXPEHUV
% 6WXG\RIVWDWLVWLFVLVPRUHLPSRUWDQWWKDQDQ\RWKHUGLVFLSOLQH&
1XPEHUVQHYHUOLH
' 1XPEHUVFDQEHXVHGWRPLVOHDGSHRSOH
7HFKQRORJ\KDVGHYHORSHGRXWRIVWRQHWRROVZKLFKZHUHXVHGLQDQFLHQWWLPHV$W
ILUVWGHYHORSPHQWRIQHZWHFKQRORJ\ZDVVORZEXWDIWHUQHROLEHUDOHFRQRPLFSROLF\
ZDVDGRSWHGWKHUHKDVEHHQDWUHPHQGRXVJURZWKLQWHFKQRORJ\VHFWRU
7KLVSDUDJUDSKEHVWVXSSRUWVWKHVWDWHPHQWWKDW
$ 6WRQHWRROVZHUHQRWUHDOO\WHFKQRORJ\
% 6WRQHWRROVZHUHLQXVHLQ$QFLHQW,QGLD
& 7RGD\QHZWHFKQRORJLHVDUHGHYHORSLQJDWDIDVWSDFH
' 1HZWHFKQRORJ\KDVQRWKLQJLQFRPPRQZLWKWKHVWRQHWRROV

,QVWUXFWLRQVWR*LYHQEHORZLVDSDLURIHYHQWV,DQG,,<RXKDYHWRGHFLGHWKHLU
QDWXUHRIUHODWLRQVKLS$VVXPHWKDWWKHJLYHQLQIRUPDWLRQLVFRUUHFWDQGILQDO

, 3ULFHVRIWR\VLQWKHPDUNHWKDYHJRQHGRZQ
,, *RYHUQPHQWKDVUHGXFHGLPSRUWGXW\RQWR\V
$ ,LVWKHPDLQFDXVHDQG,,LVWKHPDLQ
HIIHFW
% ,LVHIIHFWEXW,,LVQRWWKHPDLQFDXVH& ,,
LVWKHPDLQFDXVHDQG,LVWKHPDLQHIIHFW
' ,,LVDQHIIHFWEXW,LVQRWWKHPDLQ
FDXVH

, ,QIODWLRQUDWHLQ,QGLDKDVFRPHGRZQ
,, 5HVHUYH%DQNRI,QGLDKDVLQFUHDVHGLQWHUHVWUDWH
$ ,LVWKHPDLQFDXVHDQG,,LVWKHPDLQHIIHFW
% ,LVHIIHFWEXW,,LVQRWWKHPDLQFDXVH
& ,,LVWKHPDLQFDXVHDQG,LVWKHPDLQHIIHFW
' ,,LVDQHIIHFWEXW,LVQRWWKHPDLQFDXVH
, 0RUHDQGPRUHVWXGHQWVDUHRSWLQJIRUOHJDOHGXFDWLRQ
,, %DU&RXQFLORI,QGLDKDVLQWURGXFHG%DU([DPLQDWLRQ

, 6HDOHYHOLVVWHDGLO\ULVLQJ
,, *OREDO:DUPLQJLVDVHULRXVSUREOHPZKLFKWKHZRUOGLVIDFLQJ
ϭϮϭ

, )LQDQFLDO,QVWLWXWLRQVDUHODUJHO\XQUHJXODWHG
,, 7RGD\ZRUOGLVSDVVLQJWKURXJKDVHULRXVSKDVHRIHFRQRPLFFULVLV
$Q DUJXPHQW LV JLYHQ EHORZ RQ WKH EDVLV RI WKDW DUJXPHQW ILQG RXW WKH SDUDOOHO
DUJXPHQWIURPWKHJLYHQOLVWRIVXEVHTXHQWDUJXPHQWV
$UJXPHQW +LPDOD\DQ 6SDUURZV DUH GLVDSSHDULQJ 7KLV ELUG LV DQ ,QGLDQ ELUG
WKHUHIRUH,QGLDQELUGVDUHGLVDSSHDULQJ
6XEVHTXHQW$UJXPHQWV
$ ,QGXVWULDOLVWVSD\PRVWRIWKHWD[HV¶=·LVDZHDOWK\PDQWKHUHIRUH¶=·PXVWSD\PRVW
WD[HV
% $SLQHDSSOHLVDIUXLWDPDQJRLVDIUXLWWKHUHIRUHSLQHDSSOHLVDPDQJR
& 6QRZWLJHUVDUHDQHQGDQJHUHGVSHFLHVDOOHQGDQJHUHGVSHFLHVPXVWEHSURWHFWHG
WKHUHIRUHVQRZWLJHUPXVWEHSURWHFWHG
' -RKQ LV KLV IDWKHU·V IDYRULWH VRQ DQG -RKQ NQRZV WKLV PXVW EH WUXH EHFDXVH KLV
IDWKHUWROGKLPWKLVDQGQRIDWKHUZRXOGOLHWRKLVIDYRULWHVRQ

,QVWUXFWLRQVWR(DFKTXHVWLRQEHORZLVIROORZHGE\DUJXPHQWV&KRRVHWKHPRVW
DSSURSULDWH FKRLFH IURP WKH RSWLRQV JLYHQ 4XHVWLRQ 6KRXOG -XGLFLDO $FWLYLVP EH
GLVFRXUDJHG"
$UJXPHQW,1RLWZRXOGOHDGWRH[HFXWLYHGLFWDWRUVKLS
$UJXPHQW,,<HV-XGLFLDU\VKRXOGVWD\LQWKHFRQVWLWXWLRQDOOLPLWV
$ $UJXPHQW,LVVWURQJ %$UJXPHQW,,LVVWURQJ
&%RWKWKHDUJXPHQWVDUHVWURQJ'%RWKWKHDUJXPHQWVDUHZHDN
4XHVWLRQ6KRXOGWKH-XGLFLDU\EHLQGHSHQGHQWRI([HFXWLYHDQG/HJLVODWXUH"
$UJXPHQW,<HVWKLVLVQHFHVVDU\WRHQVXUHLPSDUWLDOLW\LQWKHDGPLQLVWUDWLRQRI
-XVWLFH
$UJXPHQW,,1RLWZLOOGHYHORSLQHUWLDLQ([HFXWLYHDQG/HJLVODWXUH
$$UJXPHQW,LVVWURQJ %$UJXPHQW,,LVVWURQJ
&%RWKWKHDUJXPHQWVDUHVWURQJ '%RWKWKHDUJXPHQWVDUHZHDN
4XHVWLRQ6KRXOG(*RYHUQDQFHEHLQWURGXFHGDWHYHU\OHYHORISXEOLFDGPLQLVWUDWLRQ"
$UJXPHQW,<HVLWZLOOUHGXFHFRUUXSWLRQ
$UJXPHQW,,1RLWZLOOOHDGWRXQHPSOR\PHQW
&%RWKWKHDUJXPHQWVDUHVWURQJ ' %RWK WKH DUJXPHQWV DUH ZHDN
4XHVWLRQ6KRXOGWKHUHEHDZRUOG*RYHUQPHQW"
$UJXPHQW,<HVLWZLOOHOLPLQDWHLQWHUVWDWHFRQIOLFWV
$UJXPHQW,,1R5LFKDQG3RZHUIXOFRXQWULHVZLOOGRPLQDWHLW
&%RWKWKHDUJXPHQWVDUHVWURQJ '%RWKWKHDUJXPHQWVDUHZHDN
´6RPHSKLORVRSKHUVEHOLHYHWKDWDFRQFHSWZKLFKFDQQRWEHYHULILHGFDQVWLOOEHYDOLG
EHFDXVHRILWVLQQHUORJLFZKLFKHQQREOHVLWµ
,QWKHOLJKWRIWKHDERYHVWDWHPHQWGHFLGHWKHVWDWXVRIWKHVWDWHPHQWJLYHQEHORZ
6WDWHPHQW´(YHU\SHUVRQKDVFHUWDLQLQKHUHQWDQGLQDOLHQDEOHULJKWVZKLFKPXVWEH
SURWHFWHGE\5XOHRI/DZµ
$7UXH %)DOVH &'LIILFXOWWRGHWHUPLQH'%RWK7UXHDQG)DOVH
ϭϮϮ

/(*$/$37,78'(

3ULQFLSOH2QO\3DUOLDPHQWRU6WDWH/HJLVODWXUHVKDYHWKHDXWKRULW\WRHQDFWODZVRQ
WKHLURZQ1RODZPDGHE\WKH6WDWHFDQWDNHDZD\DSHUVRQ·VIXQGDPHQWDOULJKW
)DFWV3DUOLDPHQWHQDFWHGDODZZKLFKDFFRUGLQJWRDJURXSRIODZ\HUVLVYLRODWLQJ
WKHIXQGDPHQWDOULJKWVRIWUDGHUV$JURXSRIODZ\HUVILOHVDZULWSHWLWLRQFKDOOHQJLQJ
WKH &RQVWLWXWLRQDO YDOLGLW\ RI WKH VWDWXWH VHHNLQJ UHOLHI WR TXDVK WKH VWDWXWH DQG
IXUWKHUGLUHFW3DUOLDPHQWWRHQDFWDQHZODZ
$ 1R ZULW ZRXOG OLH DJDLQVW 3DUOLDPHQW DV WKH FRXUW KDV QR DXWKRULW\ WR GLUHFW
3DUOLDPHQWWRHQDFWRUUHHQDFWDODZ
% 7KH FRXUW FDQ TXDVK H[LVWLQJ ODZ LI LW YLRODWHV IXQGDPHQWDO ULJKWV DQG FDQ GLUHFW
3DUOLDPHQWWRPDNHDQHZODZ
& 7KH FRXUW FDQ TXDVK WKH H[LVWLQJ ODZ LI LW YLRODWHV IXQGDPHQWDO ULJKWV EXW FDQQRW
GLUHFW3DUOLDPHQWWRPDNHDQHZODZ
' 1RQHRIWKHVH
3ULQFLSOH:KHQRQHSHUVRQVLJQLILHVWRDQRWKHUKLVZLOOLQJQHVVWRGRRUDEVWDLQIURP
GRLQJDQ\WKLQJZLWKDYLHZWRREWDLQLQJWKHDVVHQWRIWKDWSHUVRQWRVXFKDQDFWRU
DEVWLQHQFHKHLVVDLGWRKDYHPDGHDSURSRVDO
)DFW ´5DPDQXM WHOHJUDSKHG WR 6K\DP 6XQGHU ZULWLQJ ´$ -# 5-#
-"2( 35 ""µ6K\DP6XQGHUDOVRUHSOLHGE\WHOHJUDP
Á"!2%& :µ5DPDQXMLPPHGLDWHO\VHQWKLVFRQVHQWWKURXJK
WHOHJUDPVWDWLQJ´38#-2!%& ::8--#µ6K\DP6XQGHU
UHIXVHGWRVHOOWKHFDU
$ +HFDQQRWUHIXVHWRVHOOWKH&$5EHFDXVHWKHFRQWUDFWKDVDOUHDG\EHHQPDGH
% +HFDQUHIXVHWRVHOOWKH&$5EHFDXVHLWZDVRQO\LQYLWDWLRQWRRIIHUDQGQRWWKHUHDO
RIIHU
& ,WZDVQRWDYDOLGRIIHUEHFDXVHZLOOLQJQHVVWRHQWHULQWRDFRQWUDFWZDVDEVHQW'
1RQHRIWKHVH
3ULQFLSOH (YHU\ SHUVRQ ZKR LV RI WKH DJH RI PDMRULW\ LV FRPSHWHQW WR FRQWUDFW
DFFRUGLQJWRWKHODZWRZKLFKKHLVVXEMHFW
)DFWV $ PLQRU PRUWJDJHG KLV KRXVH LQ IDYRXU RI 7KDNXU 'DV D PRQH\ OHQGHU WR
VHFXUHDORDQRI5V$SDUWRIWKLVLH5VZDVDFWXDOO\DGYDQFHGWR
KLP :KLOH FRQVLGHULQJ WKH SURSRVHG DGYDQFH WKH DWWRUQH\ ZKR ZDV DFWLQJ IRU WKH
PRQH\OHQGHUUHFHLYHGLQIRUPDWLRQWKDWWKHSODLQWLIIZDVVWLOODPLQRU6XEVHTXHQWO\
WKHPLQRUFRPPHQFHGDQDFWLRQVWDWLQJWKDWKHZDVXQGHUDJHZKHQKHH[HFXWHGWKH
PRUWJDJHDQGWKHVDPHVKRXOGWKHUHIRUHEHFDQFHOOHG+HSUD\HGIRUVHWWLQJDVLGH
WKHPRUWJDJH7KHPRUWJDJHHPRQH\OHQGHUSUD\HGIRUWKHUHIXQGRI5VIURP
WKHPLQRU
$ $VDPLQRU·VFRQWUDFWLVYRLGDQ\PRQH\DGYDQFHGWRDPLQRUFDQEHUHFRYHUHG
% $ PLQRU·V FRQWUDFW LV YRLG DE LQLWLR DQ\ PRQH\ DGYDQFHG WR D PLQRU FDQQRW EH
UHFRYHUHG
& $PLQRU·VFRQWUDFWLVYRLGDEOHDQ\PRQH\DGYDQFHGWRDPLQRUFDQEHUHFRYHUHG
' $GYDQFHGPRQH\FDQEHUHFRYHUHGEHFDXVHPLQRUKDVJLYHQZURQJLQIRUPDWLRQDERXW
KLVDJH
3ULQFLSOH$SHUVRQLVVDLGWREHRIVRXQGPLQGIRUWKHSXUSRVHRIPDNLQJDFRQWUDFW
LIDWWKHWLPHZKHQKHPDNHVLWKHLVFDSDEOHRIXQGHUVWDQGLQJLWDQGRIIRUPLQJD
UDWLRQDOMXGJPHQWDVWRLWVHIIHFWXSRQKLVLQWHUHVWV
)DFWV0U;ZKRLVXVXDOO\RIVRXQGVWDWHRIPLQGEXWRFFDVLRQDOO\RIXQVRXQGVWDWH
RIPLQGHQWHUVLQWRDFRQWUDFWZLWK0U<ZKHQKHZDVRIXQVRXQGVWDWHRIPLQG0U
<KDYLQJFRPHWRNQRZDERXWWKLVIDFWDIWHUZDUGVZDQWVWRILOHDVXLWDJDLQVW0U;
ϭϮϯ

$ 0U;FDQQRWHQWHULQWRFRQWUDFWEHFDXVHKHLVRIXQVRXQGVWDWHRIPLQGZKHQKH
HQWHUHGLQWRFRQWUDFW
% 0U;FDQHQWHULQWRFRQWUDFWEXWWKHEXUGHQLVRQWKHRWKHUSDUW\WRSURYHWKDWKH
ZDVRIXQVRXQGVWDWHRIPLQGDWWKHWLPHRIFRQWUDFW
& 0U ; FDQ HQWHU LQWR FRQWUDFW EXW WKH EXUGHQ LV RQ 0U ; WR SURYH WKDW KH ZDV RI
VRXQGVWDWHRIPLQGDWWKHWLPHRIFRQWUDFW
' 1RQHRIWKHVH3ULQFLSOH
7KH VWDWH VKDOO QRW GHQ\ WR DQ\ SHUVRQ HTXDOLW\ EHIRUH WKH ODZ DQG HTXDO
SURWHFWLRQRIWKHODZVZLWKLQWKHWHUULWRU\RI,QGLD
7KH6WDWHVKDOOQRWGLVFULPLQDWHDJDLQVWDQ\FLWL]HQRQJURXQGVRQO\RIUHOLJLRQ
UDFHFDVWHVH[DQGSODFHRIELUWKRUDQ\RIWKHP
)DFWV7KH*RYHUQPHQWRI5DMDVWKDQSDVVHGDQRUGHUSURYLGLQJIRUUHVHUYDWLRQVIRU
WKH 6FKHGXOHG &DVWHV 6FKHGXOHG 7ULEHV DQG 6RFLDOO\ DQG (GXFDWLRQDOO\ %DFNZDUG
&ODVVHV LQFOXGLQJ 0XVOLPV DQG :RPHQ LQ DOO LQVWLWXWLRQV RI KLJKHU HGXFDWLRQ
LQFOXGLQJ SULYDWH HGXFDWLRQDO LQVWLWXWLRQV ERWK DLGHG DV ZHOO DV XQDLGHG LQ WKH
IROORZLQJ PDQQHU 6FKHGXOHG &DVWH 6FKHGXOHG 7ULEH 6RFLDOO\ DQG
(GXFDWLRQDOO\%DFNZDUG&ODVVHVLQFOXGLQJ0XVOLPV
, 7KH UHVHUYDWLRQ SROLF\ RI WKH JRYHUQPHQW LV YLRODWLYH RI WKH SULQFLSOH RI HTXDOLW\
HQYLVDJHGLQWKH&RQVWLWXWLRQ
,, 7KHUHVHUYDWLRQSROLF\LVXQFRQVWLWXWLRQDOEHFDXVHLWLVEDVHGRQ¶FDVWH·ZKLFKLVD
SURKLELWHGPDUNHU
,,, 5HVHUYDWLRQGRHVQRWYLRODWHHTXDOLW\FODXVHDVLWHQWDLOVÓLNHVKRXOGEHWUHDWHGOLNH
DQGXQOLNHVKRXOGEHWUHDWHGGLIIHUHQWO\µ
,9 5HVHUYDWLRQ GRHV QRW YLRODWHHTXDOLW\ FODXVHDV WKH &RQVWLWXWLRQ LWVHOI HQDEOHV WKH
6WDWHWRPDNHVSHFLDOSURYLVLRQIRUWKHDGYDQFHPHQWRIVRFLDOO\DQGHGXFDWLRQDOO\
EDFNZDUGFODVVHVRIFLWL]HQVRUIRUWKH6FKHGXOHG&DVWHVDQG6FKHGXOHG7ULEHV

$ ,LVFRUUHFW %,DQG,,DUHERWKFRUUHFWDQVZHUV
&,,,LVFRUUHFWDQVZHU',,,DQG,9ERWKDUHFRUUHFWDQVZHUV
3ULQFLSOH1RWKLQJLVDQRIIHQFHPHUHO\E\UHDVRQRILWVEHLQJGRQHZLWKWKHNQRZOHGJH
WKDWLWLVOLNHO\WRFDXVHKDUPLILWEHGRQHZLWKRXWDQ\FULPLQDOLQWHQWLRQWRFDXVH
KDUPDQGLQJRRGIDLWKIRUWKHSXUSRVHRISUHYHQWLQJRUDYRLGLQJRWKHUKDUPWRD
SHUVRQRUSURSHUW\
)DFWV0U6KDUPDQWKH&DSWDLQRIDVWHDPYHVVHOVXGGHQO\DQGZLWKRXWDQ\IDXOW
RUQHJOLJHQFHRQKLVSDUWILQGVKLPVHOILQVXFKDSRVLWLRQWKDWEHIRUHKHFDQVWRS
KLVYHVVHOKHPXVWLQHYLWDEO\UXQGRZQDERDW%ZLWKWZHQW\RUWKLUW\SDVVHQJHUV
RQ ERDUG XQOHVV KH FKDQJHV WKH FRXUVH RI KLV YHVVHO DQG WKDW E\ FKDQJLQJ KLV
FRXUVHKHPXVWLQFXUWKHULVNRIUXQQLQJGRZQDERDW&ZLWKRQO\WZRSDVVHQJHUV
RQERDUGDQGZKLFKKHPD\SRVVLEO\FOHDU
$ 6KDUPDQKDVFRPPLWWHGQRRIIHQFHEHFDXVHWKLVZDVGRQHRXWRIQHFHVVLW\
% 6KDUPDQFDQEHKHOGUHVSRQVLEOHIRUWKHDFWRIFULPLQDOQHJOLJHQFH
& 6KDUPDQFDQEHKHOGUHVSRQVLEOHIRUFXOSDEOHKRPLFLGH
' 7KLVLVDFOHDUFDVHRIDFFLGHQWVR6KDUPDQFDQQRWEHKHOGUHVSRQVLEOH
3ULQFLSOH:LOOIXOUDVKGULYLQJLVDQRIIHQVH
)DFWV0U7LZDULZDVGULYLQJKLVFDUDIWHUGULQNLQJDOFRKRO3ROLFHERRNVKLPIRUZLOOIXO
QHJOLJHQWGULYLQJ,VWKHDFWRIWKHSROLFHODZIXO"
$ 1REHFDXVH0U7LZDULZDVQRWGULYLQJUDVKO\KHZDVGUXQNZKLOHGULYLQJ%
1RWKLVLVQRWDQHJOLJHQWDFW
& <HVEHFDXVH0U7LZDULZDVGULYLQJUDVKO\
' <HVEHFDXVHWKHSROLFHKDVWKHSRZHUWRDUUHVWDSHUVRQGULYLQJUDVKO\
ϭϮϰ

3ULQFLSOH:KRHYHULQWHQGLQJWRWDNHGLVKRQHVWO\DQ\PRYDEOHSURSHUW\RXWRIWKH
SRVVHVVLRQRIDQ\SHUVRQZLWKRXWWKDWSHUVRQ·VFRQVHQWPRYHVWKDWSURSHUW\ZLWK
DQLQWHQWLRQWRWDNHLWLVVDLGWRFRPPLWWKHIW
)DFWV<FXWVGRZQDWUHHRQ=·VJURXQGZLWKWKHLQWHQWLRQRIGLVKRQHVWO\WDNLQJLWRXW
RI=·VSRVVHVVLRQZLWKRXW=·VFRQVHQW<FRXOGQRWWDNHDZD\WKHWUHH
$ <FDQEHSURVHFXWHGIRUWKHIW
% <FDQQRWEHSURVHFXWHGIRUWKHIW
& <FDQEHSURVHFXWHGIRUDWWHPSWWRWKHIW
' <KDVQHLWKHUFRPPLWWHGWKHIWQRUDWWHPSWHGWRFRPPLWWKHIW
3ULQFLSOHB#C5#5LH,QMXU\YLRODWLRQRIOHJDOULJKWZLWKRXWGDPDJH
)DFWV;ZKRZDVWKHUHWXUQLQJRIILFHUDWDSROOLQJERRWKLQ$PHWKLZURQJO\UHIXVHG
WRUHJLVWHUDGXO\WHQGHUHGYRWHRI<LQWKHUHFHQW83HOHFWLRQVHYHQWKRXJK<ZDVDQ
HOLJLEOHYRWHU7KHFDQGLGDWHLQZKRVHIDYRXU<ZDQWHGWRYRWHZDVGHFODUHGHOHFWHG
*LYHWKHDSSURSULDWHDQVZHU
$ <FDQVXH;RQWKHJURXQGWKDWKHZDVGHQLHGWKHULJKWWRFDVWYRWHZKLFKLVD
IXQGDPHQWDOULJKW
% <FDQVXH;RQWKHJURXQGWKDWKHZDVGHQLHGWKHULJKWWRFDVWYRWHZKLFKLVD
OHJDOULJKW
& <FDQQRWVXH;EHFDXVHWKHUHLVQRLQMXU\RUGDPDJHFDXVHGWR<
' < FDQQRW VXH ; EHFDXVH WKH FDQGLGDWH LQ ZKRVH IDYRU KH ZDQWHG WR YRWH ZDV
GHFODUHGHOHFWHG
3ULQFLSOH1RWKLQJLVDQRIIHQFHZKLFKLVGRQHE\DSHUVRQZKRDWWKHWLPHRIGRLQJ
LWE\UHDVRQRIXQVRXQGVWDWHRIPLQGLVLQFDSDEOHRINQRZLQJWKHQDWXUHRIWKHDFW
RUVRPHWKLQJWKDWKHLVGRLQJLVHLWKHUZURQJRUFRQWUDU\WRODZ
)DFW;WDNHVKLVVRQ<ZKRLVWKUHH\HDUVROGIRUEDWKLQJWRWKHZHOO+HWKURZVKLV
VRQLQVLGHWKHZHOOVRWKDWWKHVRQFDQKDYHDJRRGEDWK$IWHUPLQXWHVKHDOVR
MXPSVLQWRWKHZHOOWRWDNHEDWKDQGJHWKLVVRQRXWRIWKHZHOO%RWKZHUHUHVFXHG
E\WKHYLOODJHUVEXWKLVVRQZDVIRXQGGHDG
$ ;KDVFRPPLWWHGFXOSDEOHKRPLFLGHDPRXQWLQJWRPXUGHU
% ;KDVFRPPLWWHGPXUGHU
& ;KDVGRQHQRRIIHQFHDVKHFDQSOHDGWKHGHIHQVHRIXQVRXQGVWDWHRIPLQG
' ;·V IDPLO\ VKRXOGEHKHOGUHVSRQVLEOH IRU DOORZLQJKLP WR WDNH WKH FKLOG WR WKH
ZHOO
3ULQFLSOH,JQRUDQFHRI)DFWLVH[FXVHGEXWLJQRUDQFHRIODZLVQRH[FXVH
)DFW ; ZDV D SDVVHQJHU IURP =XULFK WR 0DQLOD LQ D 6ZLVV 3ODQH :KHQ WKH SODQH
ODQGHGDWWKH$LUSRUWRI%RPED\RQ1RYLWZDVIRXQGRQVHDUFKLQJWKDW;
FDUULHG NJ RI *ROG %DUV RQ KLV SHUVRQ DQG WKDW KH KDG QRW GHFODUHG LW LQ WKH
¶0DQLIHVW IRU 7UDQVLW· 2Q WK 1RY WKH *RYHUQPHQW RI ,QGLD KDG LVVXHG D
QRWLILFDWLRQPRGLI\LQJLWVHDUOLHUH[HPSWLRQPDNLQJLWPDQGDWRU\QRZWKDWWKHJROG
PXVWEHGHFODUHGLQWKH´0DQLIHVWµRIWKHDLUFUDIW
$ ; FDQQRW EH SURVHFXWHG EHFDXVH KHKDG DFWXDOO\ QR NQRZOHGJH DERXW WKHQHZ
QRWLILFDWLRQLVVXHGWZRGD\VDJR
% ;FDQQRWEHSURVHFXWHGEHFDXVHLJQRUDQFHRIIDFWLVH[FXVDEOH
& ;FDQEHSURVHFXWHGEHFDXVHLJQRUDQFHRIODZLVQRWH[FXVDEOH
' ;·VOLDELOLW\ZRXOGGHSHQGRQWKHGLVFUHWLRQRIWKHFRXUW
3ULQFLSOH3URSRVDOFRPPXQLFDWLRQ$FFHSWDQFHFRPPXQLFDWLRQ&RQVLGHUDWLRQ
&RQWUDFW 7KH FRPPXQLFDWLRQ RI D SURSRVDO LV FRPSOHWH ZKHQ LW FRPHV WR WKH
NQRZOHGJHRIWKHSHUVRQWRZKRPLWLVPDGH
)DFWV;·VQHSKHZDEVFRQGHGIURPKRPH+HVHQWKLVVHUYDQWLQVHDUFKRIWKHER\
$IWHUWKHVHUYDQWKDGOHIW;E\KDQGELOOVRIIHUHGWRSD\5VWRDQ\ERG\ILQGLQJKLV
ϭϮϱ

QHSKHZ7KHVHUYDQWFDPHWRNQRZRIWKLVRIIHURQO\DIWHUKHKDGDOUHDG\WUDFHGWKH
PLVVLQJFKLOG+HWKHUHIRUHEURXJKWDQDFWLRQWRUHFRYHUWKHUHZDUG
$ +LVDFWLRQZRXOGIDLOEHFDXVHKHZDVQRWDZDUHRIWKHRIIHU
% +LVDFWLRQZRXOGQRWIDLOEHFDXVHLWZDVDJHQHUDORIIHU
& 7KH IDFW WKDW KH ZDV QRW DZDUH RI WKH RIIHU GRHV QRW PDNH DQ\ GLIIHUHQFH DQG
KHQFHLWZDVDYDOLGFRQWUDFW,WLVDPHUHIRUPDOLW\
' 1RQHRIWKHDERYH
3ULQFLSOH$JUHHPHQWVWKHPHDQLQJRIZKLFKLVQRWFHUWDLQRUQRWFDSDEOHRIEHLQJ
PDGHFHUWDLQDUHYRLG
)DFWV$KRUVHZDVERXJKWIRUDFHUWDLQSULFHFRXSOHGZLWKDSURPLVHWRJLYH
5VPRUHLIWKHKRUVHLVSURYHGOXFN\$ 7KLVLVDYDOLGDJUHHPHQW
% 7KLV DJUHHPHQW LV YRLG IRU XQFHUWDLQW\ EHFDXVH LW LV
YHU\GLIILFXOWWRGHWHUPLQHZKDWOXFNEDGRUJRRGWKH
KRUVHKDVEURXJKWWRWKHEX\HU
& 7KHDJUHHPHQWLVSDUWLDOO\YDOLGDQGSDUWLDOO\YRLG'
1RQHRIWKHDERYH
3ULQFLSOH0HUHVLOHQFHDVWRWKHIDFWVOLNHO\WRDIIHFWWKHZLOOLQJQHVVRIDSHUVRQWR
HQWHULQWRDFRQWUDFWLVQRWDIUDXGXQOHVVWKHFLUFXPVWDQFHVRIWKHFDVHDUHVXFK
WKDWRQFORVHH[DPLQDWLRQLWLVIRXQGWREHWKHGXW\RIWKHSHUVRQNHHSLQJVLOHQWWR
VSHDNRUXQOHVVKLVVLOHQFHLVLQLWVHOIHTXLYDOHQWWRVSHHFK
)DFWV;VHOOVE\DXFWLRQWR<DKRUVHZKLFK;NQRZVWREHRIXQVRXQGVWDWHRIPLQG
;VD\VQRWKLQJWR<DERXWWKHKRUVH·VXQVRXQGVWDWHRIPLQG*LYHWKHFRUUHFW
DQVZHU
$ ;FDQEHKHOGOLDEOHIRUIUDXG
% ;FDQEHKHOGOLDEOHIRUPLVUHSUHVHQWDWLRQ
& ; FDQQRW EH KHOG OLDEOH EHFDXVH KH GLG QRW VD\ DQ\WKLQJ SRVLWLYH DERXW WKH
PHQWDOVWDWHRIWKHKRUVH
' ;FDQQRWEHKHOGOLDEOHEHFDXVHLWLVWKHEX\HUZKRPXVWEHDZDUHRIWKHWKLQJV
3ULQFLSOH $Q\ GLUHFW SK\VLFDO LQWHUIHUHQFH ZLWK JRRGV LQ VRPHERG\·V SRVVHVVLRQ
ZLWKRXWODZIXOMXVWLILFDWLRQLVFDOOHGWUHVSDVVRIJRRGV
)DFWV=SXUFKDVHGDFDUIURPDSHUVRQZKRKDGQRWLWOHWRLWDQGVHQWLWWRDJDUDJH
IRUUHSDLU;EHOLHYLQJZURQJO\WKDWWKHFDUZDVKLVUHPRYHGLWIURPWKHJDUDJH
$ ;FDQEHKHOGUHVSRQVLEOHIRUWUHVSDVVRIJRRGV
% ;FDQQRWEHKHOGUHVSRQVLEOHIRUWUHVSDVVRIJRRGVDVKHZDVXQGHUDZURQJEHOLHI
& ;KDVQRWFRPPLWWHGDQ\ZURQJ
' 1RQHRIWKHDERYH

,QVWUXFWLRQVWR(DFKRIWKHQH[WQLQHTXHVWLRQVFRQVLVWVRIWZRVWDWHPHQWV
RQH ODEHOHG DV ¶$VVHUWLRQ· $ DQG RWKHU DV ¶5HDVRQ· 5 <RX DUH WR H[DPLQH WKHVH WZR
VWDWHPHQWVFDUHIXOO\DQGVHOHFWWKHFRUUHFWDQVZHUV
$VVHUWLRQ$$YRLGFRQWUDFWLVQRWQHFHVVDULO\LOOHJDO5HDVRQ5(YHU\LOOHJDO
FRQWUDFWLVYRLG
$ %RWK$DQG5DUHLQGLYLGXDOO\WUXHDQG5LVWKHFRUUHFWH[SODQDWLRQRI$
% %RWK$DQG5DUHLQGLYLGXDOO\WUXHEXW5LVQRWWKHFRUUHFWH[SODQDWLRQRI$& $
LVWUXHEXW5LVIDOVH
' $LVIDOVHEXW5LVWUXH
$VVHUWLRQ$7KH,QGLDQ&RQVWLWXWLRQZDVDGRSWHGRQWK1RYHPEHU
5HDVRQ5/DZ'D\LVFHOHEUDWHGLQ,QGLDRQWK1RYHPEHUHYHU\\HDU
% %RWK$DQG5DUHLQGLYLGXDOO\WUXHEXW5LVQRWWKHFRUUHFWH[SODQDWLRQRI$
ϭϮϲ

& $LVWUXHEXW5LVIDOVH
$VVHUWLRQ$7KHVWDWHVKDOOQRWPDNHDQ\ODZZKLFKWDNHVDZD\RUDEULGJHVWKH
ULJKWVFRQIHUUHGE\3DUW,,,)XQGDPHQWDO5LJKWVDQGDQ\ODZPDGHLQFRQWUDYHQWLRQ
RIWKLVFODXVHVKDOOWRWKHH[WHQWRIWKHFRQWUDYHQWLRQEHYRLG
5HDVRQ 57KH IXQGDPHQWDOULJKWV DUH WKHULJKWVUHVHUYHGE\ WKHSHRSOH DQG IRU
WKLVUHDVRQWKH\DUHHWHUQDODQGVDFURVDQFW
LVWUXHEXW5LVIDOVH
$VVHUWLRQ $ 'LUHFWLYH 3ULQFLSOHV RI 6WDWH3ROLF\FRQWDLQHG LQ3DUW,9 VKDOO QRWEH
HQIRUFHDEOH E\ DQ\ FRXUW EXW WKH SULQFLSOHV WKHUHLQ ODLG GRZQ DUH QHYHUWKHOHVV
IXQGDPHQWDOLQWKHJRYHUQDQFHRIWKHFRXQWU\DQGLWVKDOOEHWKHGXW\RIWKH6WDWHWR
DSSO\WKHVHSULQFLSOHVLQPDNLQJODZV
5HDVRQ 5 'LUHFWLYH 3ULQFLSOHV RI 6WDWH 3ROLF\ DQG )XQGDPHQWDO 5LJKWV DUH ERWK
FRPSOHPHQWDU\WRHDFKRWKHUEXWLQFDVHRIDQ\FRQWURYHUV\IXQGDPHQWDOULJKWVZLOO
SUHYDLO
LVWUXHEXW5LVIDOVH
$VVHUWLRQ$$OOPLQRULWLHVZKHWKHUEDVHGRQUHOLJLRQRUODQJXDJHVKDOOKDYHWKH
ULJKWWRHVWDEOLVKDQGDGPLQLVWHUHGXFDWLRQDOLQVWLWXWLRQVRIWKHLUFKRLFH
5HDVRQ5,QVWLWXWLRQVHVWDEOLVKHGE\WKHPLQRULWLHVDUHQRWHQWLWOHGWR
JRYHUQPHQWDODLGDQGJRYHUQPHQWLVQRWXQGHUDQREOLJDWLRQWRJLYHDLG
LVWUXHEXW5LVIDOVH
$VVHUWLRQ $ 7KH ULJKW WR PRYH WKH 6XSUHPH &RXUW XQGHU $UWLFOH RI WKH
&RQVWLWXWLRQ E\ DSSURSULDWH SURFHHGLQJV IRU WKH HQIRUFHPHQW RI WKH IXQGDPHQWDO
ULJKWVLVJXDUDQWHHGDVDIXQGDPHQWDOULJKW
5HDVRQ 5 6XSUHPH &RXUW RI ,QGLD KDV EHHQ DSSRLQWHG DV WKH JXDUGLDQ RI WKH
&RQVWLWXWLRQ
LVWUXHEXW5LVIDOVH
$VVHUWLRQ $ ,I WKH EXGJHW SUHVHQWHG WR WKH 5DM\D 6DEKD LQ QRW SDVVHG LQ WKH
VWLSXODWHGSHULRGWKHEXGJHWSURSRVDOVDUHQRWDIIHFWHG
5HDVRQ 5 7KH /RN 6DEKD LV PRUH SRZHUIXO LQ ILQDQFLDO PDWWHUV WKDQ WKH 5DM\D
6DEKD
LVWUXHEXW5LVIDOVH
$VVHUWLRQ$,QWKH(YHQWRIYLRODWLRQRIDQ\OHJDOULJKWWRUWWKHDJJULHYHGSDUW\LV
HQWLWOHGWRUHFRYHUXQOLTXLGDWHGGDPDJHV
ϭϮϳ

5HDVRQ57KHREMHFWRIDZDUGLQJGDPDJHVWRWKHDJJULHYHGSDUW\LVWRSXWKLPLQ
WKHVDPHSRVLWLRQLQZKLFKKHZRXOGKDYHEHHQLIWKHZURQJZRXOGQRWKDYHEHHQ
FRPPLWWHG'DPDJHVDUHWKHUHIRUHDVVHVVHGRQWKDWEDVLV
LVWUXHEXW5LVIDOVH
$VVHUWLRQ$'XULQJLQIODWLRQWKHUHLVLQFUHDVHLQPRQH\VXSSO\DQGULVHLQSULFH
OHYHO
5HDVRQ57KHULVHLQSULFHVLVGXHWRVKRUWDJHLQVXSSO\RIHVVHQWLDOFRQVXPHUJRRGV
LVWUXHEXW5LVIDOVH
$VVHUWLRQ$;EHFDXVHRIXQVRXQGVWDWHRIPLQGDQGQRWNQRZLQJWKHQDWXUHRI
WKHDFWDWWDFNV<ZKRLQVHOIGHIHQVHDQGLQRUGHUWRZDUGRIIWKHDWWDFNKLWVKLP
WKHUHE\LQMXULQJKLP<KDVQRWFRPPLWWHGDQRIIHQFH
5HDVRQ5<KDGDULJKWRISULYDWHGHIHQVHDJDLQVW;XQGHU6HFWLRQRIWKH,QGLDQ
3HQDO&RGH
LVWUXHEXW5LVIDOVH
$VVHUWLRQ$;DQG<LQGHSHQGHQWO\HQWHUWDLQHGWKHLGHDWRNLOO=$FFRUGLQJO\HDFK
RIWKHPVHSDUDWHO\LQIOLFWHGZRXQGVRQ=ZKRGLHGDVDFRQVHTXHQFH;DQG<DUH
OLDEOHIRUPXUGHUXQGHU,3&
5HDVRQ5:KHQDFULPLQDODFWLVGRQHE\VHYHUDOSHUVRQVLQIXUWKHUDQFHRIFRPPRQ
LQWHQWLRQRIDOOHDFKRIVXFKSHUVRQVLVOLDEOHDVLIWKHZKROHDFWZDVGRQHE\KLP
DORQH
$VVHUWLRQ$$SHUVRQFODLPVFRPSHQVDWLRQIRUKLVQRQJUDWXLWRXVDFW
5HDVRQ 5 $ SHUVRQ ZKR HQMR\V EHQHILW IURP ODZIXO QRQJUDWXLWRXV DFW RI DQRWKHU
PXVWFRPSHQVDWHKLPHYHQWKRXJKWKHUHLVQRFRQWUDFW
$VVHUWLRQ $ )UHHGRPRI 6SHHFK LV WKHPRVW LPSRUWDQWFLYLO OLEHUW\ RI SHRSOH LQ D
GHPRFUDWLFSROLW\
5HDVRQ56WDWHFDQUHJXODWHIUHHVSHHFKLQWKHLQWHUHVWRISXEOLFRUGHU
$VVHUWLRQ$$XVWLQ·VFRQFHSWRIODZLVNQRZQDVLPSHUDWLYHWKHRU\
5HDVRQ5$XVWLQHPSKDVL]HGRQWKHFRPPDQGLQJFKDUDFWHURIODZ
ϭϮϴ

$VVHUWLRQ$7KHHVVHQFHRIMRLQWOLDELOLW\XQGHUVHFWLRQRIWKH,3&LVWKDWWKH
FULPLQDO DFW PXVW KDYH EHHQ GRQH ZLWK D YLHZ WR IXOILOO WKH FRPPRQ REMHFW RI DQ
XQODZIXODVVHPEO\
5HDVRQ5$Q\VXGGHQDQGSURYRFDWLYHDFWGRQHE\DPHPEHURIDQXQODZIXODVVHPEO\
ZRXOGUHQGHUWKHRWKHUPHPEHUVRIWKDWDVVHPEO\OLDEOH
LVWUXHEXW5LVIDOVH
7KH IROORZLQJ DUH HQVKULQHG LQ WKH 3UHDPEOH RI WKH &RQVWLWXWLRQ RI ,QGLD ,
(TXDOLW\RIVWDWXVDQGRIRSSRUWXQLW\
,, /LEHUW\RIWKRXJKWH[SUHVVLRQEHOLHIIDLWKDQGZRUVKLS
,,, -XVWLFHVRFLDOHFRQRPLFDQGSROLWLFDO
,9 )UDWHUQLW\DVVXULQJWKHGLJQLW\RIWKHLQGLYLGXDO9 8QLW\ DQG ,QWHJULW\ RI WKH
QDWLRQ
:KLFKRIWKHIROORZLQJLVWKHFRUUHFWRUGHULQZKLFKWKH\DSSHDULQWKHSUHDPEOH"
$ 9,,,,9,,,%,,,,,,,99&,,,,,,9,9',,,,9,,,9:KLFKRQHRI
WKHIROORZLQJVWDWHPHQWVLVFRUUHFW"
5LJKWWRIUHHDQGFRPSXOVRU\HGXFDWLRQIRUDOOFKLOGUHQRIWKHDJHRIWR\HDUVLV
$ DIXQGDPHQWDOULJKWHQIRUFHDEOHLQODZ
% DIXQGDPHQWDOGXW\
& DGLUHFWLYHSULQFLSOHRIVWDWHSROLF\
' DIXQGDPHQWDOULJKWZKLFKKRZHYHUFDQEHHQIRUFHGRQO\LIWKHVWDWHPDNHVDQ
HQDEOLQJOHJLVODWLRQ
$IILUPDWLYHDFWLRQFRQQRWHV
, 0HDVXUHVWDNHQE\WKHVWDWHWRKHOSWKHVRFLDOO\GLVDGYDQWDJHGJURXSV
,, 3RVLWLYHGLVFULPLQDWLRQ
,,, 6WULFW TXRWDV IRU WKH VRFLDOO\ DQG HGXFDWLRQDOO\ EDFNZDUG FODVV LQ
VFKRROFROOHJHDGPLVVLRQVDQGMREV
:KLFKRIWKHDERYHPHQWLRQHGLVWUXH"
$,DQG,,RQO\ %,,RQO\ &,,,DQG,,, ',,DQG,,,RQO\
,GHQWLI\WKHFRUUHFWVWDWHPHQW
$ )HGHUDOLVPLPSOLHVDV\VWHPRIJRYHUQPHQWZKLFKHPERGLHVDGLYLVLRQRISRZHUV
EHWZHHQDFHQWUDODQGDQXPEHURIUHJLRQDODXWKRULWLHV
% )HGHUDOLVPLPSOLHVDV\VWHPRIJRYHUQPHQWZKLFKHPERGLHVDGLYLVLRQRISRZHUV
EHWZHHQ/HJLVODWXUH([HFXWLYHDQG-XGLFLDU\
& )HGHUDOLVP LPSOLHV D V\VWHP RI *RYHUQPHQW ZKLFK HPERGLHV 3DUOLDPHQWDU\
VXSUHPDF\
' 1RQHRIWKHVH
&RQVLGHUWKHIROORZLQJVWDWHPHQWV
, ,QDUHFHQW6XSUHPH&RXUWYHUGLFWSURQRXQFHGE\-XVWLFH0DUNDQGH\D.DWMXDQG
-XVWLFH *\DQ 6XGKD 0LVKUD WKH FRXUW XSKHOG WKH FRQVWLWXWLRQDOLW\ RI WKH +DM
VXEVLG\
,, 0XVOLPVDUHQRWWKHRQO\EHQHILFLDULHVRIWKHVHFXODUVWDWH·VJHQHURVLW\+LQGXV
KDYHDOVRUHFHLYHGVXEVWDQWLDOILQDQFLDOVXSSRUWIURPWKH*RYHUQPHQW
:LWKUHIHUHQFHWRWKHVWDWHPHQWVPHQWLRQHGDERYHZKLFKRIWKHIROORZLQJLVFRUUHFW"
$,RQO\ %,,RQO\ &%RWK,DQG,, '1HLWKHU,QRU,,
ϭϮϵ

;DPDUULHGZRPDQDJUHHGWROLYHLQDGXOWHU\ZLWK%DQGDOVRDJUHHGWRVHUYHKLPDV
KLVKRXVHNHHSHU,QUHWXUQ%DJUHHGWRSD\;5VSHUPRQWKIRUOLYLQJLQDGXOWHU\
DQG5VSHUPRQWKIRUKRXVHNHHSLQJ7KHDJUHHPHQWLV$ 9DOLG
% 9RLG
& 9RLGDVWRWKHILUVWREMHFWEXWYDOLGZLWKUHVSHFWWRWKHVHFRQGREMHFW
' 8QODZIXODVEHLQJRSSRVHGWRSXEOLFSROLF\
5DPXDSSOLHGIRUWKHSRVWRI'LUHFWRULQDQRUJDQL]DWLRQ7KHJRYHUQLQJERG\RIWKH
RUJDQL]DWLRQSDVVHGDUHVROXWLRQDSSRLQWLQJKLPWRWKHSRVW$IWHUWKHPHHWLQJRQHRI
WKH PHPEHUV RI WKH JRYHUQLQJ ERG\ LQIRUPHG KLP SULYDWHO\ RI WKH UHVROXWLRQ
6XEVHTXHQWO\WKHUHVROXWLRQZDVUHVFLQGHG5DPXFODLPVGDPDJHV:KLFKRQHRIWKH
IROORZLQJLVWKHFRUUHFWOHJDOSURSRVLWLRQLQWKHFDVH"
$ 5DPX FDQQRW FODLP GDPDJHV DV KH KDG QRW UHVLJQHG IURP KLV H[LVWLQJ SRVW LQ
DQWLFLSDWLRQRIJHWWLQJWKHDSSRLQWPHQWOHWWHU
% 5DPXFDQQRWFODLPGDPDJHVDVWKHUHZDVQRIRUPDOFRPPXQLFDWLRQ
& 5DPXFDQFODLPGDPDJHVDVJRYHUQLQJERG\FDQQRWUHVFLQGWKHUHVROXWLRQRQFH
SDVVHG
' 5DPXFDQFODLPGDPDJHVDVWKHUHZDVSULYDWHFRPPXQLFDWLRQ
7KH 5DLOZD\ DXWKRULWLHV DOORZHG D WUDLQ WR EH RYHU FURZGHG ,Q FRQVHTXHQFH D
OHJLWLPDWHSDVVHQJHU0U;JRWKLVSRFNHWSLFNHG&KRRVHWKHDSSURSULDWHDQVZHU
$ 0U;FDQVXHWKH5DLOZD\DXWKRULWLHVIRUWKHORVVVXIIHUHG
% 0U ; FDQQRWVXHEHFDXVH KH KDG JLYHQ KLV FRQVHQW WR WUDYHO LQ D RYHUFURZGHG
WUDLQ
& 0U ; FDQQRW VXH UDLOZD\ DXWKRULWLHV EHFDXVH WKHUH ZDV QR LQIULQJHPHQW RI KLV
OHJDO
ULJKWDQGPHUHIDFWWKDWWKHORVVZDVFDXVHGGRHVQRWJLYHULVHWRDFDXVHRIDFWLRQ
' 1RQHRIWKHVH
=LVFDUULHGRIIE\DWLJHU;ILUHVDWWKHWLJHUNQRZLQJWKDWWKHVKRWPLJKWNLOO=EXW
ZLWKQRLQWHQWLRQWRNLOO=DQGLQJRRGIDLWKWU\LQJWRVDYH=;·VVKRWKRZHYHUJLYHV
=DPRUWDOZRXQG&KRRVHWKHFRUUHFWRSWLRQ²$ ;
KDVFRPPLWWHGDQRIIHQFHRIDJULHYRXVQDWXUH
% ;KDVQRPRUDOGXW\WRVDYH=WKHUHIRUHKHFDQEHKHOGOLDEOH
& ;KDVQRWFRPPLWWHGDQ\RIIHQFHDVWKHDFWZDVLQJRRGIDLWKDQGIRUWKHEHQHILW
RI=
' 1RQHRIWKHDERYH
0V8VKDZDQWVWRILOHDVXLWDJDLQVW%KDJ\DOD[PL7KHDWUHSUD\LQJIRUDSHUPDQHQW
LQMXQFWLRQ VWD\ RUGHU UHVWUDLQLQJ WKH WKHDWUH IURP UXQQLQJ WKH ILOP QDPHG ´-DL
6DQWRVKL 0DDµ +HU FRQWHQWLRQ LV WKDW WKH ILOP KXUW KHU UHOLJLRXV IHHOLQJV DQG
VHQWLPHQWV DV *RGGHVV 6DUDVZDWL /D[PL DQG3DUYDWL ZHUHGHSLFWHG DV MHDORXV DQG
ZHUHULGLFXOHG
$ 6KHFDQQRWILOHDVXLWEHFDXVHLQMXU\WRUHOLJLRXVIHHOLQJVLVQRWDOHJDOO\UHFRJQL]HG
ULJKW
% 6KHFDQQRWILOHDVXLWEHFDXVHWKH7KHDWUHKDVDIXQGDPHQWDOULJKWWRVSHHFKDQG
H[SUHVVLRQ
& 6KHFDQILOHDVXLWDVLQMXU\WRUHOLJLRXVIHHOLQJVKDVEHHQOHJDOO\UHFRJQL]HGDVD
ULJKW
B#5#5
' ,WLVDFDVHRIFRPSOHWHMXGLFLDOGLVFUHWLRQ

ϭϯϬ

0DWFKVFKHGXOHRQHDQGWZRDQGFKRRVHWKHDSSURSULDWHDQVZHU
6FKHGXOH, 6FKHGXOH,,
L &RQFXUUHQWOLVW &RQVWLWXWLRQRI-DSDQ
LL 5XOHRI/DZ &RQVWLWXWLRQRI,UHODQG
LLL 'LUHFWLYH3ULQFLSOHRI6WDWH3ROLF\ %ULWLVK&RQVWLWXWLRQ
LY 3URFHGXUHHVWDEOLVKHGE\ODZ &RQVWLWXWLRQ RI $XVWUDOLD
L LL LLL LY
$
%
&
'

34DQG5PDGHDMRLQWSURPLVHWRJLYH6DVXPRI5V6UHFRYHUHGWKHZKROH
DPRXQWIURP34ZDVGHFODUHGLQVROYHQWDQGFDQQRWJLYHDQ\WKLQJ:KLFKVWDWHPHQW
RXWRIWKHIROORZLQJLVFRUUHFW"
$ 3FDQQRWJHWDQ\WKLQJIURP5 %3FDQUHFRYHU5VIURP5
&3FDQUHFRYHU5VIURP5 '3FDQUHFRYHU5VIURP5
; ZHQW WR <·V KRXVH DQG IRUJRW KLV EDJ ZKLFK FRQWDLQHG NJ VZHHWV <·V FKLOGUHQ
FRQVXPHGWKHVZHHWV'HFLGHWKHOLDELOLW\RI<
$ <LVERXQGWRSD\WKHSULFHRIVZHHWVWR;
% <LVQRWERXQGWRSD\DQ\WKLQJ
& <LVERXQGWRSD\KDOIWKHSULFHRIVZHHWV
' <ZRXOGQRWKDYHWRSD\DQ\WKLQJEHFDXVH;ORYHV<·VFKLOGUHQ
:KLFKRQHRIWKHIROORZLQJLVQRWFRUUHFW"
$ )UHHGRPRIVSHHFKDQGH[SUHVVLRQLQFOXGHVIUHHGRPRISUHVV
% 5LJKWWROLIHDQGSHUVRQDOOLEHUW\LQFOXGHVULJKWWRFDUU\RQDQ\WUDGHDQGSURIHVVLRQ
& 5LJKWWRHTXDOLW\LQFOXGHVWKHSULQFLSOHVRIQDWXUDOMXVWLFH
' )UHHGRPRIFRQVFLHQFHLQFOXGHVWKHZHDULQJDQGFDUU\LQJRINLUSDQVE\WKH6LNKV
< PDNHV DQ DWWHPSW WR VWHDO VRPH MHZHOV E\ EUHDNLQJ RSHQ D ER[ DQG ILQGV DIWHU
RSHQLQJWKHER[WKDWWKHUHLVQRMHZHOLQLW&KRRVHWKHDSSURSULDWHDQVZHU
$ <LVQRWJXLOW\RIDWWHPSWWRWKHIWEHFDXVHWKHER[ZDVHPSW\
% <LVJXLOW\RIDWWHPSWWRFRPPLWWKHIW
& <LVJXLOW\RIWUHVSDVV
' <LVQRWJXLOW\RIDQ\RIIHQFH
$ODG\ZDQWHGWRJHWDUDLOZD\WLFNHWEXWILQGLQJDFURZGQHDUWKHWLFNHWZLQGRZDWWKH
VWDWLRQDVNHG5DMXZKRZDVQHDUWKHZLQGRZWRJHWDWLFNHWIRUKHUDQGKDQGHGKLP
PRQH\IRUWKHVDPH5DMXWRRNWKHPRQH\DQGLQVWHDGRIJHWWLQJWKHWLFNHWUDQDZD\
ZLWKLW:KDWRIIHQFHKDVEHHQFRPPLWWHGE\5DMX"
$ 1RRIIHQFH %&ULPLQDOEUHDFKRIWUXVW
&&ULPLQDOPLVDSSURSULDWLRQ '7KHIW
7KH5LJKWWR(TXDOLW\LVJXDUDQWHHGE\
$$UWLFOHWR %$UWLFOH
&$UWLFOHDQG '$UWLFOHDQG
0U6DPD\ZDVVHYHUHO\KXUWZKLOHZRUNLQJLQKLVIDFWRU\DQGIHOOXQFRQVFLRXV+H
ZDVUXVKHGWRDKRVSLWDOE\KLVIHOORZZRUNHUV,QWKHKRVSLWDODWHPHUJHQF\FDVXDOW\
ZDUGWKHGRFWRUVRSLQHGWKDWKHVKRXOGEHRSHUDWHGLPPHGLDWHO\:KLOHFRQGXFWLQJ
SUHOLPLQDU\ H[DPLQDWLRQV KH ZDV IRXQG WR EH +,9 SRVLWLYH 7KH GRFWRUV DUH LQ D
GLOHPPDUHJDUGLQJZKDWVKRXOGWKH\GRILUVW
ϭϯϭ

$ 'RFWRUVVKRXOGRSHUDWHILUVW
% 'RFWRUVVKRXOGLQIRUPKLVIDPLO\PHPEHUV
& 'RFWRUVVKRXOGLQIRUPKLVHPSOR\HUV
' 'RFWRUV VKRXOG QRW LQIRUP DQ\RQH EHFDXVH LW ZRXOG YLRODWH SDWLHQW·V ULJKW RI
SULYDF\
0DWFKWKHVFKHGXOH,DQG,,DQGFKRRVHWKHDSSURSULDWHDQVZHU
6FKHGXOH, 6FKHGXOH,,
L 5HSXEOLF +HDGRIWKHVWDWHLVHOHFWHGE\WKHSHRSOH
LL 6HFXODU6WDWHGRHVQRWUHFRJQL]HDQ\UHOLJLRQDVUHOLJLRQRIWKHVWDWH

LLL 'HPRFUDF\ 7KHJRYHUQPHQWZKLFKJHWVDXWKRULW\IURPWKHZLOORI
WKHSHRSOH
L LL LLL
$
%
&
'
,QZKLFKRIWKHIROORZLQJFDVHVFDQD&RQVWLWXWLRQDODPHQGPHQWEHSDVVHGMXVWE\D
VLPSOHPDMRULW\LQ3DUOLDPHQW"
$ (OHFWLRQPDWWHUV %&KDQJHLQWKHQDPHDQGERXQGDULHVRIVWDWHV
&3RZHUVRIWKH3UHVLGHQW'1RQHRIWKHDERYH

ϭϯϮ

Common Law Admission Test(CLAT) -2013

UNDER-GRADUATE COURSES

UG - 4

Question Booklet No. 10001 OMR Answer Sheet Number
(To be filled by the Candidate)
Signature of the Invigilator ……………………….............. Name of the
Invigilator. ………………………................... Roll Number

(To be filled by the Candidate)

Question Booklet Series: A

Time: Two Hours Maximum Marks: 200
Number of pages in this Booklet : 39 Number of Questions in this Booklet: 200

INSTRUCTIONS TO THE CANDIDATES
1. The Question Booklets will be distributed ten minutes before the commencement of the test.
2. After commencement of the test, during the first five minutes, you are required to open the question booklet and
compulsorily examine it for defects, if any, as stated below:
(a) To have access inside the Question Booklet, tear off the paper seal on the edge of this cover page. Do not
accept a booklet if it is opened or without sticker-seal.
(b) Tally the number of pages and number of questions in the question booklet with the information printed on
the cover page. Faulty booklets with missing pages/questions, misprint, fudging of print or duplication
of pages or any other discrepancy should immediately be brought to the notice of the invigilator(s) and
replaced by the same series correct question booklet within first five minutes of the commencement of
the test. Afterwards, the question booklet will not be replaced.
(c) Only after the verification of question booklet, enter your Roll Number, Question Booklet Number and
Question Booklet Series in the space provided on OMR Answer Sheet with Ball Point Pen and shade the
relevant circles with HB Pencil only.
3. There are 200 objective type multiple-choice questions carrying one mark each. Each question has four choices of
answers. Select the most appropriate answer and shade the corresponding circle in the OMR Answer Sheet with HB
Pencil only. If more than one circle is shaded, then the answer to that question shall be deemed as wrong. There is
negative marking for wrong answers wherein 0.25 mark will be deducted for each of the wrong answers.
4. Specific instructions are given at the beginning of each question or a set of questions. Read them carefully before
answering.
5. Possession of any kind of electronic gadget inside the examination hall is strictly prohibited. Possession and/or use of
any such gadget shall disqualify the candidate from appearing in the test.
6. In case of any malpractice or attempt to resort to any malpractice, which includes talking to neighbours, copying or using
unfair means etc., the Invigilator/Centre Superintendent shall seize the material, if any, and expel the candidate from the
examination hall.
7. The first bell will ring 10 minutes before the commencement of the test. As soon as the first bell rings the invigilator(s)
will distribute the OMR Answer Sheet and Question Booklet to the candidates. The second bell will ring at 3:00 p.m.
which indicates the commencement of the test. The third bell will ring at 4:00 pm. to indicate the completion of one hour
of test. The fourth bell will be rung 10 minutes before the completion of the test. The fifth and final long bell will ring at
5:00 p.m. to indicate the completion of the test.
8. No candidate shall be permitted to leave the Examination Hall before 5:00 pm.
9. You have to return the Question Booklet and OMR Answer Sheet to the invigilators at the end of the test
compulsorily and must not carry it with you outside the Examination Hall.
10. Rough Work is to be done in the end of this booklet.

132
ENGLISH INCLUDING COMPREHENSION

Direction for Questions 1 to 10: Read the given passage carefully and attempt the questions that follow and
shade the appropriate answer in the space provided for it on the OMR answer sheet.

It is an old saying that knowledge is power. Education is an instrument which imparts knowledge and
therefore, indirectly controls power. Therefore, ever since the dawn of our civilisation, persons in power
have always tried to supervise or control education. It has been handmaid of the ruling class. During the
Christian era, the ecclesiastics controlled the institution of education and diffused among the people the
gospel of the Bible and religious teachings. These gospels and teachings were no other than a philosophy
for the maintenance of the existing society. It taught the poor man to be meek and to earn his bread with the
sweat of his brow, while the priests and the landlords lived in luxury and fought duels for the slightest
offence. During the Renaissance, education passed more from the clutches of the priest into the hands of the
prince. In other words, it became more secular. Under the control of the monarch, education began to devise
and preach the infallibility of its masters, the monarch or king. It also invented and supported fantastic
theories like “The Divine right Theory” and that the king can do no wrong, etc. With the advent of the
industrial revolution, education took a different turn and had to please the new masters. It now no longer
remained the privilege of the baron class, but was thrown open to the new rich merchant class of the society.
The philosophy which was in vogue during this period was that of “Laissez Faire” restricting the function
of the state to a mere keeping of laws and order while on the other hand, in practice the law of the jungle
prevailed in the form of free competition and the survival of the fittest.
1. What does the theory “Divine Right of King” stipulate?
A. The kings are God
B. That the right of governing is conferred upon the kings by God
C. They have the right to be worshipped like Gods by their subjects
D. That the right of kings are divine and therefore sacred
2. Who controlled education during the Renaissance?
A. The common people
B. The prince
C. The church and the priests
D. None of these
3. What did the ruling class in the Christian era think of the poor man?
A. That he is the beloved of God
B. That he deserves all sympathy of the rich
C. That he should be strong and lord over others
D. That he is meant for serving the rich
4. Who controlled the institution of education during the Christian Era?
A. The secular leaders of society
B. The church and the priests
C. The monarchs
D. The common people
5. What does the word “infallibility” mean?
A. That every man is open to error
B. Sensitivity

133
C. The virtue of not making mistake
D. That some divine power is responsible for determining the fate of the man
6. What do you mean by the “sweat of his brow”?
A. Very hard work
B. The tiny droplets of sweat on the forehead
C. The wrinkles visible on the forehead
D. The sign of innocence
7. What does the policy of “Laissez Faire” stand for?
A. Individual freedom in the economic field
B. State control over law and order in society
C. Joint control of the means of production by the state and private enterprise
D. Decontrol over law and order by the ruling class
8. Which of the following describes the writer?
A. Concerned
B. Unconcerned
C. Aggressive
D. Frustrated
9. Choose the correct synonym out of the four choices given:
Gospels
A. Chit chat
B. A teaching or doctrine of a religious teacher
C. Rumour
D. Guidance
10. Choose the correct synonym out of the four choices given:
Vogue
A. Uncertain
B. Out-dated
C. The prevailing fashion or style
D. Journey
Direction for Questions 11 to 15: Select the word that is spelt correctly
11. A paraphernalia
B paraphrenalia
C parapherenalia
D paraphrennalia

12. A enterprenuer
B entrepreneur
C entrepenur
D enteruepeur

13. A onomaetopoeia
B onomoatopoeia
C onomatopoeia

D onomatopoeia

134
14. A hemorhage B haemorhhage
C haemorrhage
D hemoorhage

15. A dylexsia B dyslexia
C dislexia
D dislecsia

Direction for questions 16 to 25: Select the best option from the four alternatives given below and shade the
appropriate answer in the space provided for it in the OMR answer sheet.
16. Unless he _________ this office, I will not say anything.
A. Left
B. Did not leave
C. Leaves
D. Had left
17. ___________, I would help all the poor people.
A. If I am rich
B. If I was rich
C. If I were rich
D. In case I am rich
18. I ________ the news an hour ago.
A. Have heard
B. Heard
C. Was hearing
D. Have been hearing
19. He spoke __________ about his prospects.
A. Confidentially
B. Consciously
C. Confidently
D. Conscientiously
20. The boy is not interested in playing, _____ ? A. Doesn’t he?
B. Isn’t he?
C. Didn’t he?
D. Is he?
21. He told us that we should never live beyond ___________ means.
A. His
B. Their
C. Our
D. Her
22. May I request _______ you again to consider my case favourably.

A. To
135

B. Onto
C. Of
D. No proposition required
23. Known as devout and serious person, she also has ______ sense of humour.
A. Better
B. Quick
C. Good
D. Beautiful
24. Galileo said, “The Earth ______ around the sun”.
A. Revolved
B. Is revolving
C. Revolves
D. Is revolved
25. We ____________ our work before the guests arrived at our house.
A. Shall finish
B. Have finished
C. Had finished
D. Shall have finished

Direction for Questions 26 to 30: The sentences given in each question, when properly sequenced, form a
coherent paragraph. Each sentenced is labelled with a letter. Choose the most logical order of sentences
from among the given choices to construct a coherent paragraph. Shade the appropriate answer in the space
provided for it in the OMR sheet.
26. a: People who start up their own business typically come from two extreme backgrounds: One is
the business family background and the other is a steady professional family background. b:
Typically, people from different backgrounds face different kinds of basic problems.
c: The people from both the backgrounds find it very difficult to establish and manage an enterprise.
d: Starting up and managing a small business is no joke.
A. d b c a
B. b a c d
C. d a c b
D. c d a b
27. a: Venture capital is recommended as the ideal source of financing for a successfully small business.
b: Several companies including start ups have been funded by dedicated venture funds during this
decade.
c: Despite this, an average Indian entrepreneur understands and appreciation of venture capital
concept has been woefully inadequate. d: In the Indian context, though venture capital has been a
relatively late entrant, it has already made a reasonable impact.
A. a b c d B. a d b c
C. a c b d
adcb

138
D.
28. a: Progress in diagnosis, in preventive medicine and in treatment, both medicinal and surgical, has
been rapid and breathe taking. b: Much in medicine which is not taken for granted was undreamt
of even as recently as 20 years ago. c: Presently small pox has been eradicated, poliomyelitis
practically banished, tuberculosis has become curable and coronary artery disease surgically
relievable.
d: The dramatic surge in the field of molecular biology and research by immunologists and
geneticists has succeeded in controlling parasitic diseases like malaria and river blindness that
affect millions of people round the world.
A. b d c a
B. b a c d
C. b c a d
D. b d a c
29. a: Instead, many deaths and injuries result from falling objects and the collapse of buildings, bridges
and other structures. b: Earthquakes almost never kill people directly. c: Fire resulting from broken
gas or power lines is another major danger during a quake. d: Spills of hazardous chemicals are
also a concern during an earthquake.
A. c a b d
B. d a c b
C. d c a b D. b a c d
30. a: The Winchester or hard disk drives can store much more data than what can be stored on a floppy
diskette. b: Hard disks come sealed and they cannot be removed or changed like floppy diskettes.
c: Often floppy disk system is used in conjunction with the Winchester disk system. d: This makes
for an ideal system for secondary storage.
A. c a b d B. c b d a C. b a c d D. a b c d

Direction for Questions 31 to 35: Given below are a few foreign language phrases which are commonly
used. Choose the correct meaning for each of the phrases and shade the appropriate answer in the space
provided for it in the OMR sheet.
31. El Dorado
A. An imaginary place
B. High altitude
C. A literary man
D. A country full of gold and precious stones
32. quantum ramifactus
A. The amount of damage suffered
B. The amount of damage caused
137
C. The amount of damage paid
D. The amount of damage received
33. Corpus delicti
A. Fake evidence of an offence

B. Hearsay evidence of an offence

C. Lack of evidence of an offence
D. An evidence which constitute an offence
34. Vis-a-vis A. Direct
B. Opposite
C. Face to face
D. Agree
35. Carte blanche A. Complete authority
B. Issue the warrant
C. No authority
D. Lack of authority

Direction for Questions 36 to 40: Choose the explanation that catches the spirit of the idiom given in each
question.
36. To blaze a trail: A. To set on fire
B. To blow the trumpet
C. To initiate work in a movement
D. To be hopeful 37. A snake in the grass: A. A secret or hidden enemy
B. An unreliable person
C. Unforeseen happening
D. A dangerous enemy
38. Have too many irons in the fire:
A. Engaged in too many enterprises at the same time
B. Facing too many problems at the same time
C. Said or done too many things at the same time
D. To incite the feeling amongst the people
39. A fair weather friend:
A. A friend who is fair to us at all the times
B. A friend who deserts us in difficulties
C. A friend whom we love the most
D. A friend who loves us the most 40. A Panacea:
A. An injection that serves as a life line
B. A lecture full of precepts
C. A strong drug that induces sleep

140
D.
A single cure for all diseases or troubles

ELEMENTARY MATHEMATICS (NUMERICAL ABILITY)

41 2 / 3 is a rational number whereas ¥2 / ¥3 is
A. Also a rational number
B. An irrational number
C. Not a number
D. A natural periodic number
42 Greatest number which divides 926 and 2313, leaving 2 and 3 remainders, respectively, is

43 A single discount equivalent to a discount series 15% and 5% is
A. 32% B. 20%
C. 10%
D. 8.5%
44 By selling a cycle for Rs. 2345, a student loses 19%. His cost price is nearly
A. Rs. 4000 B. Rs. 5000 C. Rs. 3000
D. Rs. 3500
45 Diagonals of a rhombus are 1 meter and 1.5 meter in lengths. The area of the rhombus is
A. 0.75 m2
B. 1.5 m
C. 1.5 m2
D. 0.375 m2
46 An angle in a semi circle is
A. ʌ
B. ʌ/4
C. ʌ/2
D. 2ʌ
47 In a school for midday meal food is sufficient for 250 students for 33 days, if each student is
given 125 gm meals. 80 more students joined the school. If same amount of meal is given to
each student, then the food will last for
A. 20 days
B. 40 days
C. 30 days
D. 25 days

141

48 In a school of 500 students, 102 students can read Hindi and Tamil both, 200 students can read
only Hindi. The students who can read Tamil are
A. 98
B. 402
C. 302
D. 300
49 The value of k for which kx+3y-k+3 = 0 and 12x+ky = k, have infinite solutions, is
A. 0
B. -6
C. 6
D. 1
50 Table shows the daily expenditure on food of 25 households in a locality:
Rs. 100-150 150-200 200-250 250-300 300-350
Households 4 5 12 2 2
The mean daily expenditure on food is
A. Rs. 111
B. Rs. 161
C. Rs. 211
Rs. 261
51 A box contains 24 marbles, some are green and others are blue. If a marble is drawn at random
from the jar, the probability that it is green is 2/3. The number of blue balls in the jar is
A. 13
B. 12
C. 16
D. 8
52 The population of a city is 250 thousand. It is increasing at the rate of 2% every year. The
growth in the population after 2 years is

142
D.
A. 2500
B. 10000
C. 252000
D. 10100
53 If a point (x, y) in a OXY plane is equidistant from (-1,1) and (4,3) then
A. 10x+4y = 23
B. 6x+4y = 23
C. –x+y = 7
D. 4x+3y = 0
54 Sum of first 15 multiples of 8 is
A. 960
B. 660
C. 1200
D. 1060
55 A rod of 2 cm diameter and 30 cm length is converted into a wire of 3 meter length of uniform
thickness. The diameter of the wire is
141
A. 2/10 cm
B. 2/¥10 cm
C. 1/¥10 cm
D. 1/10 cm
56 Two straight poles of unequal length stand upright on a ground. The length of the shorter pole
is 10 meters. A pole joins the top of the two vertical poles. The distance between the two tops
is 5 meters. The distance between the poles along the ground is 4 meter. The area thus formed
by the three poles with the ground is
A. 52 meter2

B. 46 meter2
C. 20 meter2
D. 50 meter2
57 Pipe A can fill a tank in 10 hours and pipe B can fill the same tank in 12 hours. Both the pipes
are opened to fill the tank and after 3 hours pipe A is closed. Pipe B will fill the remaining part
of the tank in
A. 5 hours
B. 4 hours
C. 5 hours 24 minutes
D. 3 hours
58 A ground 100x80 meter2 has two cross roads in its middle. The road parallel to the length is 5
meter wide and the other road is 4 meter wide, both roads are perpendicular to each other. The
cost of laying the bricks at the rate of Rs. 10 per m2, on the roads, will be
A. Rs. 7000
B. Rs. 8000
C. Rs. 9000
D. Rs. 10000
59 If selling price of 10 articles is equal to cost price of 11 articles, then gain is

144

A. 8%
B. 9%
C. 8.5%
D. 10%
60 Angles of a quadrilateral are in the ratio 3:4:5:8. The smallest angle is
A. 54o
B. 72o
C. 36o
D. 18o
GENERAL KNOWLEDGE AND CURRENT AFFAIRS

61 The Headquarter of European Union is situated in
A. England
B. Germany
C. France
D. Belgium
62 India in 2008 successfully put CHANDRAYAAN-1 into its initial orbit by
A. PSLV- C12
B. PSLV- C11
C. PSLV-14
D. GSLV-D3
63 Vishwanathan Anand retained the World Chess Championship in 2012 by defeating Boris
Gelfand. Mr. Gelfand belongs to
A. Israel
B. Russia
C. Poland
D. USA
64 Kapilvastu Relics (fragments of Lord Buddha’s bone), for the second time in 114 years, recently
travelled from India to
A. China
B. Sri Lanka
C. Myanmar
D. Japan
65 Dr. Norman Borlaugh is famous as father of the Green Revolution in 1960s. His initial goal was to
create varieties of wheat adapted to the climate of
A. Mexico
B. India

C.
D.
143
USA
China
66 A feature ‘Bluetooth’ now common in mobile phones, gets its name from a
A. Chinese 10th Century King
B. UK Software Company
C. Greek Goddess
D. Danish 10th Century King
67 Which pair of states does not touch each other A. Meghalaya, Manipur
B. Chhattisgarh, U.P. C.
Rajasthan, Punjab
D. J.K., H.P.
68 Baglihar dam, is constructed on river
A. Ravi
B. Chenab
C. Indus
D. Sutlej
69 Navjivan Trust was instituted with the objectives of propagating peaceful means of attaining third
Swaraj, by
A. Mohan Das Karam Chand Gandhi
B. Lala Lajpat Rai
C. Bal Gangadhar Tilak
D. Dr. Ambedkar
70 World Cup Football 2014 and Olympics 2016 will be held in
A. USA
B. Brazil
C. Russia
D. South Africa
71 In 2012-13, India’s target is to restrict the fiscal deficit to x % of the GDP, where x is
A. 10
B. 8.3
C. 15
D. 5.1
72 POSCO steel project to come up but being strongly protested by the people is located in
A. Chhattisgarh
B. Jharkhand
C. Odisha
D. Andhra Pradesh
73 Bharat Ratna and Padma Awards in our country were instituted in the year
A. 1952 B. 1954 C. 1962
D. 1964
74 Who was crowned the Miss World 2012 on August 18, 2012?

144
A. Ms. Jessica Kahawaty
B. Ms. Wenxia Yu
C. Ms. Vanya Mishra
D. Ms. Sophie Moulds
75 Vishwaroopam is a 2013 Tamil spy thriller film written, directed and co-produced by
______________ who also enacts the lead role.
A. Prakash Raj
B. Rajni Kant
C. Kamal Haasan
D. Chiranjeevi
76 Vijay Kumar, who clinched a silver medal in London Olympics in 2012 is associated with
A. Boxing
B. Shooting
C. Weight Lifting
D. Wrestling
77 Sushil Kumar who won a silver medal in London Olympics in 2012 is associated with
A. Shooting
B. Boxing
C. Wrestling
D. Weight lifting
78 How many medals did India win in London Olympics 2012?
A. 3 B. 4 C. 5
D. 6
79 The present Pope chosen in March 2013 hails from which country?
A. Brazil
B. Mexico
C. Argentina
D. Panama
80 The first person to set foot on the moon on July 20, 1969 and who died on Aug. 25, 2012 was
A. Nevil Armstrong
B. Neil Armstrong
C. Gagan Narang
D. Michael Phelps
81 In which place, on Feb 21, 2013, two powerful explosive devices planted on bicycles had exploded
in Andhra Pradesh?
A. Dilrubnagar
B. Dilsukhnagar
C. Dilkushnagar
D. Dilshaknagar
82 On which date Maha Kumbh Mela started in Prayag this year?

C.
D.
A. 14-1-2013
B. 1-1-2013
145
26-1-2013
4-1-2013
83 On which date International Women’s Day is celebrated?
A. 18th March
B. 8th March
C. 28th March
D. 18th Feb
84 Duration of which Five Year Plan was 2007-2012
A. X
B. XII
C. IX
D. XI
85 As per census 2011, which State has the lowest sex ratio (877:1000)?
A. Punjab
B. Haryana
C. Uttar Pradesh
D. Bihar
86 Hugo Chavez who died on March 5, 2013 after losing his battle with cancer, was the President of
which country?
A. Argentina
B. Cuba
C. Brazil
D. Venezuela
87 Carlos Slim, who tops the list of world’s wealthiest people, for the fourth year in a row, belongs to
which country?
A. USA
B. England
C. Mexico
D. Germany
88 In the name P. Chidambaram, the present Union Finance Minister, what does ‘P’ stands for?
A. Palghat
B. Pallakudi
C. Palaniappan
D. Perumal
89 The earlier name of which city was New Amsterdam?
A. Chicago
B. California C. Washington D.C.
D. New York City
90 The grant of Diwani of Bengal, Bihar and Orissa is associated with

A. Nawab Shuja-ud-Daula
B. Nawab Asif-ud-Daula
C. Shah Alam I
D. Shah Alam II
146
91 Where did Kuchipudi, an eminent dance form, originate?
A. Kerala
B. Andhra Pradesh
C. Uttar Pradesh
D. Tamil Nadu
92 Light Year is the unit of
A. Time
B. Distance
C. Light
D. None of these
93 The leaning tower of Pisa does not fall because
A. It is tapered at the top
B. It covers a large base area
C. Its C.G. is inside the tower
D. The vertical line passing through the C.G. of the tower falls within its base
94 “Paradise Regained” was written by
A. John Milton
B. Michel Angelo
C. John Keats
D. Lord Byron
95 Which is the richest temple in India?
A. Balaji Temple of Tirupathi
B. Padmanabha Swamy Temple of Thiruvananthapuram
C. Shirdi Sai Baba Temple D. Jagannatha Temple of Puri 96 Who founded the Red Cross?
A. Henry Dunant
B. Alexander
C. James Cook
D. Bismark
97 World Literacy Day is celebrated on
A. 5th September B. 6th September
C. 8th September
D. None of these

C.
D.
98 South African Paralympics icon Oscar Pistorius has been accused of killing
A. Julia Kamp
B. Reeva Steenkamp
C. Pistorius Kamp
D. Shakeera Kamp
99 In the month of March, 2013 the Supreme Court of India issued a notice that the ambassador of the
following country shall not leave India without the permission of the Supreme Court
A. Germany
B. Maldives
147
Italy
Nepal
100 The Constitution (One Hundred Seventeenth Amendment) Bill, 2012 makes provisions regarding
A. Reservation in matters of promotions for Scheduled Castes and Scheduled Tribes
B. Reservation in matters of appointments for Scheduled Castes and Scheduled Tribes
C. Reservation in matters of appointments and promotions for Scheduled Castes and Scheduled
Tribes
D. None of the above
101 The number of High Courts in India is
A. 18 B. 24 C. 21
D. 28
102 The last British Emperor of India was
A. King George I
B. King George III
C. King George V
D. King George VI
103 Palaeolithic period is also known as
A. Mesolithic Age
B. Late Stone Age
C. Old Stone Age
D. Neolithic Age
104 Capital of India was transferred from Calcutta to Delhi in the year
A. 1901 B. 1911 C. 1921
D. 1922
105 The chairman of Fundamental Rights Sub-Committee of the Constituent Assembly was
A. Rajendra Prasad
B. B.R. Ambedkar
C. Jawaharlal Nehru
D. J.B. Kripalani
106 The Environment Protection Act was passed by the Parliament of India in the year
A. 1976 B. 1986 C. 1996
D. 2006

107 International Year of Biodiversity is/was/will be

A. 2010 B. 2011 C. 2012
D. 2014
108 The first Shaka king in India was
148
A. Rudradaman
B. Menadar
C. Maues
D. Damanrudra
109 Potential Energy is described by the expression:
A. PE= mgh
B. PE= ngh
C. PE= oph
D. PE= pph
110 Where was 16th NAM Summit held?
A. Tehran
B. Mehran
C. Turban
D. Bagdad
LOGICAL REASONING
Direction for Questions 111 to 113: Answer the following questions based on the statements given below:
i. There are 3 poles on each side of the road.
ii. These six poles are labelled A, B, C, D, E and F. iii. The poles are of different colours
namely Golden, Silver, Metallic, Black, Bronze and White. iv. The poles are of different
heights.
v. E, the tallest pole, is exactly opposite to the Golden colours pole. vi.
The shortest pole is exactly opposite to the Metallic coloured pole. vii. F,
the Black coloured pole, is located between A and D.
viii. C, the Bronze coloured pole, is exactly opposite to A. ix.
B, the Metallic coloured pole, is exactly opposite to F.
x. A, the White coloured pole, is taller than C but shorter than D and B.

111 What is the colour of the pole diagonally opposite to the Bronze coloured pole?
A. White
B. Silver
C. Metallic
D. Golden
112 Which is the second tallest pole?

C.
D.
A. A
B. D
C. B
D. Cannot be determined
113 Which is the colour of the tallest pole?
A. Golden
B. Silver
C. Bronze
D. None of these
149

Directions for questions 114 and 115: Answer the questions on the basis of the information given below:
The head of a newly formed Government desires to appoint five of the six elected ministers P, Q, R, S, T
and U to portfolios of Foreign, Industry and Commerce, Agriculture, Rural Development and Human
Resources. U does not want any portfolio if S gets one of the five. R wants either Foreign or Human
Resources or no portfolio. Q says that if S gets Industry and Commerce or Rural Development then she
must get the other one. T insists on a portfolio if P gets one.

114 Which of the following is a valid assignment
A. P- Foreign, Q- Industry and Commerce, R- Agriculture, S- Rural Development, T- Human
Resources
B. R- Foreign, S- Industry and Commerce, P- Agriculture, Q- Rural Development, T- Human
Resources
C. P- Foreign, Q- Industry and Commerce, T- Agriculture, S- Rural Development, U- Human
Resources
D. Q- Foreign, U- Industry and Commerce, T- Agriculture, R- Rural Development, P- Human
Resources
115 If P gets Foreign and R gets Human Resources, then which is NOT a valid assignment of
Agriculture and Rural Development
A. S- Agriculture, Q- Rural Development
B. U- Agriculture, Q- Rural Development
C. Q- Agriculture, T- Rural Development
D. Q- Agriculture, S- Rural Development
Direction for Questions 116 to 120: In each of the following questions, a related pair of words is followed
by four pairs of words or phrases. Select the pair that best expresses a relationship similar to the one
expressed in the question pair.
116 Action : Reaction A. Introvert : Extrovert
B. Assail : Defend
C. Diseased : Treatment
D. Death : Rebirth
117 Sorrow : Misery A. Love : Obsession
B. Amity : Harmony
C. Happiness : Joy
D. Enemy : Hatred
118 Drama : Audience A. Brawl : Vagabonds
B. Game : Spectators
C. Art : Critic
D. Movie : Actors
119 Nuts : Bolts A. Nitty : Gritty
B. Bare : Feet
C. Naked : Clothes
150
D. Hard : Soft
120 Book : Author A. Rain : Flood
B. Light : Switch

C. Symphony : Composer
D. Song : Music

Directions for questions 121 to 125: Each question contains a statement on relationship and a question
regarding relationship based on the statement. Select the correct option.
121 Moni is daughter of Sheela. Sheela is wife of my wife’s brother. How Moni is realted to my wife?
A. Cousin
B. Niece
C. Sister
D. Sister-in-law
122 Annu is daughter of my mother’s brother Abahi. Pari is grand daughter of my mother. Pari should
call Annu as A. Maternal Aunt
B. Sister
C. Cousin D.
Niece
123 Markandey is Rajiv’s mother’s father. Markandey is three brothers. One of them has grandson
Abahi. Rajan is son of Abahi. Rajan is related to Rajiv as
A. Brother
B. Nephew
C. Cousin D. Uncle
124 Deepak said to Nitin, “That boy playing with the football is the younger of the two brothers of the
daughter of my father’s wife”. How is the boy playing football related to Deepak?
A. Son
B. Brother
C. Cousin
D. Brother-in-law
125 Pointing to a woman in the photograph, Rajesh said, “The only daughter of her grandfather is my
wife”. How is Rajesh related to that woman?
A. Uncle
B. Father
C. Maternal Uncle
D. Brother

Direction for Questions 126 to 130: Read the information given below to answer the questions.
i. Kareena’s dieting schedule consists of having only one fruit on a given day of the week.
ii. Dietician has prescribed banana, papaya, pomegranate, apple and grape from Sunday to Friday,
one day being a fasting day. Kareena cannot eat any fruit on Saturday.
iii. Pomegranate day is neither on the first day nor on the last day but earlier than the papaya day.
151
iv. Apple day is on the immediate next day of papaya day.
v. Banana day is on the immediate previous day of the fasting day.
154

vi. Apple day and grape day must have a gap of two days between them. vii. Grape day is the day
immediately following the fasting day.

126 Which of the following is the fasting day?
A. Monday
B. Tuesday
C. Wednesday
D. Thursday
127 Banana day and apple day have a gap of how many days between them?
A. One
B. Two
C. Three
D. Four
128 Which day is grape day?
A. Monday
B. Tuesday
C. Thursday
D. Sunday
129 Which day is pomegranate day?
A. Sunday
B. Monday
C. Tuesday
D. Wednesday
130 Which of the following is the correct statement? A. Apple day is after papaya day.
B. Banana day is on Wednesday.
C. Fasting day is on Tuesday.
D. Papaya day is earlier than banana day.
Direction for Questions 131 to 135: Each question contains one statement and two courses of action I and
II. Assuming the statements to be true, decide which of the two courses of action most logically follows.
Code:
A. If only I follows.
B. If only II follows.
C. If either I or II follows.
D. If neither I nor II follows.

131 Statement: Indian children are very talented but are instead weak in science and mathematics.
I: Teaching and textbooks are not available in mother language.
II: Education based on experiments in both the subjects is lacking.
131-A

132 Statement: Despite of child labour laws, children can be seen working in hotels, shops, houses, very
frequently.
I: The government should not make such laws which cannot be enforced.
II: A proper education system for the primary level particularly for lower caste community may
eradicate this problem.
132-B
133 Statement: Kyoto protocol on environment is signed by almost every country of the world.
I: As a result air, water and soil pollution have come down.
II: Increasing production of automobiles, refrigerators and fertilisers do not affect our
environment. 133-D
134 Statement: School dropout rate is very high in the rural areas as children support their parents in
income earning activities.
I: Public awareness programme on primary education should be expanded immediately to educate
parents.
II: Compensation is not a remedy.
134-A
135 Statement: Smoking is one of those human weaknesses which tend to test the will power of the
smoker of the edge.
I: It is very difficult for the smoker to give up smoking even if they want to do so. II:
Human beings have other weaknesses as well
135-D
Direction for Questions 136 to 140: Complete the series by choosing the correct option. 136
0, 1, 1, 2, 3, 5, 8, 13, 21, ?
A. 34
B. 35
C. 33
D. 36
137 A -10, E -15, I -20, M -25,…….
A. Q-5
B. Q-30
C. P-30
D. R-30
138 17, 36, 74, 150, ? , 606
A. 250 B. 303 C. 300
D. 302
139 2, 1, 4, 3, 6, 5, 8, ?
A. 9
B. 10
C. 7
D. 8
140 1, 4, 27, 256. ?
A. 625
B. 3125 C. 3025
D. 1225
156

Direction for Questions 141 to 145: In each question below are given two statements numbered I and II.
You have to take the two given statements as true even if they seem to be at variance with commonly
known facts. Read all the conclusions and then decide which of the given conclusions logically follow
from the given statements, disregarding commonly known facts.
141 I: All vegetables have gravy.
II: All lunch has vegetable.

A. All lunch has gravy.
B. All gravy has lunch.
C. Both (A) and (B).
142 I: Karan Johar is a good director.
II: Directors are intelligent.

A. All intelligent are directors.
B. Karan Johar is intelligent.
C. Both (A) and (B).
D. None of the above 143 I: Some blues are green.
II: Pink is green

A. Some blue is pink.
B. Some green is pink.
C. If either (A) or (B) follows.
D. Some pinks are blues. 144 I: All boys are tall.
II: All Punjabi are tall.

A. All boys are Punjabi.
B. Some boys are Punjabi.
C. Both of the above.
D. None of the above.
145 I: All girls go to the college.
II: Rina does not go to the college.

A. Rina is not a girl.
B. Going to college is not essential to be a girl.
C. Rina is a girl.
D. None of the above.

Direction for Questions 146-150: Read the information given below to answer the questions.

A, B, C, D, E, F, G and H want to have a dinner on a round table and they have worked out the following
seating arrangements.
i. A will sit beside C
157

ii. H will sit beside A

iii. C will sit beside E iv. F will sit beside H
v. E will sit beside G
vi. D will sit beside F
vii. G will sit beside B viii. B will sit beside D
146 Which of the following is wrong? A. A
will be to the immediate right of C
B. D will be to the immediate left of B
C. E will be to the immediate right of A
D. F will be to the immediate left of D 147 Which of the following is correct? A. B will be to
the immediate left of D
B. H will be to the immediate right of A
C. C will be to the immediate right of F
D. B will be to the immediate left of H 148 A and F will become neighbours if:
A. B agrees to change her sitting position
B. C agrees to change her sitting position
C. G agrees to change her sitting position
D. H agrees to change her sitting position 149 During sitting:
A. A will be directly facing C B.
B will be directly facing C
C. A will be directly facing B
D. B will be directly facing D
150 H will be sitting between:
A. C and B
B. A and F
C. D and G
D. E and G
LEGAL APTITUDE
This section consists of fifty (50) questions. Each question consists of legal propositions/ principles
(hereinafter referred to as ‘principle’) and facts. These principles have to be applied to the given facts to
arrive at the most reasonable conclusion. Such principles may or may not be true in the real sense, yet you
have to conclusively assume them to be true for the purposes of this section. In other words, in answering
the following questions, you must not rely on any principles except the principles that are given herein
below for every question. Further you must not assume any facts other than those stated in the question.
158

The objective of this section is to test your interest towards study of law, research aptitude and problem
solving ability even if the “most reasonable conclusion” arrived at may be unacceptable for any other
reason. It is not the objective of this section to test your knowledge of law.
151:
Principle: When an offer is accepted by a person to whom it is made, it becomes a promise.
But this promise will become legally binding only when the acceptance of the offer is
unconditional.
Facts: Ram makes an offer to sell his house to Shyam for Rs.50 lacs. Shyam accepts this
offer but wants to pay the price of the house in five quarterly instalments. Ram does not
agree to it. Thereafter Shyam agrees to pay the price of the house in the way as originally
desired by Ram. But Ram does not reply to it. Can Shyam compel Ram to sell his house to
him?
A. Shyam can compel Ram to sell his house because Shyam ultimately agrees to pay the price
as originally desired by Ram
B. Shyam can compel Ram to sell his house because Shyam in the first instance substantially
complied with the desire of Ram
C. Shyam can compel Ram to sell his house because Ram’s offer does not exclude the
payment of price in instalments
D. Shyam can not compel Ram to sell his house because Shyam imposes a new condition
about payment of price of the house while accepting the offer which is not ultimately
accepted by Ram.
152:
Principle: Generally an agreement without consideration is not valid. Therefore, in order
to make a valid agreement, some consideration which may have some value in the eyes of
law, is essentially required.
Facts: William has an old car of which he makes seldom use. He voluntarily enters into an
agreement with Smith to sell this car for rupees ten thousand. Thereafter one Anson
approaches William and offers to buy that car for rupees one lac as the car was one which
Anson has been searching for long. Now William wants to cancel his agreement with Smith
and refuses to deliver the car to him saying that consideration (price) for the car promised
by Smith is negligible and, therefore, agreement with him can not be said to be valid one.
A. William can cancel his agreement with Smith as the consideration involved in that is really
inadequate.
B. William can not cancel his agreement with Smith as the sale of car for rupees ten thousand
was voluntary and this price has some value in the eyes of law.
C. William can cancel his agreement with Smith as he was ignorant about the value / price of
the car for which it could be sold.
D. William can cancel his agreement with Smith as he is entitled to get full market value/price
of his car.
153
Principle: In order to be illegible to appear in the semester examination, a student is required to
attend, under all circumstances, at least 70% of the total classes held in that semester as per
University rules.
156
Facts: Anand, an economically poor but a very brilliant student of LL.B. final semester, while going
to his University by cycle received some leg injuries in road accident. Consequently Anand could

not attend his classes for one week as he was advised rest by his doctor for that period. Due to this
absence from the University, Anand failed to have 70% attendance essential to appear in the
examination and, therefore, he was debarred from appearing in the examination by the
University authorities. Anand challenges this decision in the court of law
A. Anand will succeed in the court of law as the accident was beyond his control
B. Anand will definitely get favour of the court on humanitarian ground as he comes from a
economically poor family and may not afford to take readmission
C. Anand will not succeed as he could very easily fulfill eligibility criteria for appearing in the
examination by being reasonably regular in the class throughout the semester.
D. Anand will succeed as requirement of 70% attendance may be declared arbitrary and, therefore,
unreasonable by the court of law.
154
Principle: A seller of goods cannot transfer better rights than he himself possesses in the goods sold
to the buyer.
Facts: Komal leaves his watch by mistake on a seat in the park. Sonal finds that watch and
immediately sells the same for good price to Monal who without inquiring whether Sonal is its
owner or not. Komal later on claims that watch from Monal. Decide whether Komal can succeed?
A. Komal cannot succeed as Monal has paid good price of the watch.
B. Komal cannot succeed as Monal is unaware of the fact that Sonal is not its owner.
C. Komal can not succeed as it was his carelessness and nothing else which enabled Sonal to sell
the watch to Monal.
D. Komal can not succeed as Sonal is merely finder of the watch and, therefore, cannot transfer
ownership rights thereon to Monal.
155
Principle: All citizens shall have the Fundamental Right to carry on any occupation, trade or
business. But reasonable restrictions on the exercise of such rights can be imposed by law in the
interest of the general public.
Facts: A large number of persons had been carrying on the business of dyeing and printing in Rajkot
area for the last 25 years providing employment to about 30000 families. From these business
places untreated dirty water was being discharged on the roads thereby causing damage to the public
health. A notice, therefore, was given to close this business till necessary measures to protect public
health as provided under the environmental statutes were taken by those business men.
A. Notice can not be justified as it will cause loss of employment to 30000 families.
B. Notice can not be justified as it amounts to violation of the fundamental right of the persons
who have been carrying on the business for the last 25 years.
C. The notice can not be justified on the ground of damage to public health as the persons in that
area have been voluntarily residing for long and have become used to that environment.
D. The notice can be justified as the right to business is not absolute and reasonable restriction can
be imposed by law in the interest of the public.

156
157
160

Principle: A Contract can not be enforced by or against a person who is not a party to it. However,
where some benefit is conferred on third party by the contract itself, there third party can be allowed
to enforce that contract to get such benefit.
Facts: Dinesh is liable to pay Rs. 50000/- to Suresh. In order to discharge this liability Dinesh enters
into a contract with Ramesh by which Dinesh sells his car to Ramesh for Rs. 1 lac. Ramesh takes
the delivery of the car and promises/ assures to pay its price at the earliest. Dinesh separately
informs Suresh about this contract for his satisfaction. Ramesh fails to pay the car’s price. Suresh
wants to join Dinesh in filing suit against Ramesh for the recovery of price of the car. Whether
Suresh is entitled to do so?
A. Suresh is entitled to do so because the contract was made for his benefit.
B. Suresh is entitled to do so because Dinesh is liable to him and discharge of this liability depends
upon the payment of the price of the car by Ramesh.
C. Suresh is not entitled to do so because liability of Dinesh does not depand upon any assurance
of Ramesh
D. Suresh is not entitled to do because he is not a party to the contract between Dinesh and Ramesh.
157
Principle: If a contract is made by post between two persons living in two different cities, then the
contract is said to be complete as soon as the letter of acceptance is properly posted, and the place
of completion of the contract is that city where acceptance is posted. It is worth mentioning here
that in every contract there is always an offer from one party and the acceptance of the offer from
the other party.
Facts: Sani, a resident of Patna, gives an offer by post to sell his house for Rs. 25 lacs to Hani, a
resident of Allahabad. This offer letter is posted on 1st January 2013 from Patna and reaches
Allahabad on 7th January 2013. Hani accepts this offer and posts the letter of acceptance on 8th
January 2013 from Allahabad which reaches Patna on 16th January 2013. But Sani presuming that
Hani is not interested in accepting his offer, sells his house to Gani at same price on 15th of January,
2013. Hani files a suit against Sani for the breach of contract in the competent court of Allahabad.
Whether Hani will succeed?
A. Hani can not succeed as Sani can not be compelled by law to wait for the answer from Hani for
an indefinite period of time.
B. Hani can not succeed as he could use some other effective and speedy mode for communicating
his acceptance in minimum possible time
C. Hani can succeed as he properly posted the letter of acceptance and the delay was beyond his
control
D. Hani can succeed as contract became complete in the eyes of law on the date of posting the
letter of acceptance
158
Principle: He, who goes to the court of law to seek justice, must come with clean hands.
Facts: P enters into a contract with S under which S has to construct a house for P and has to
complete the same within one year from the date of the contract. This contract includes two very
important terms. According to first term if there is price hike of the materials to be used in the
construction, then the escalation charges at a particular rate shall be payable by P to S. According
to second term if the construction of the house is not completed within the period prescribed for

it, then S will have to pay penalty at a particular rate to P. Before the completion of the construction
work the workers of S go on strike and strike continues up to three months even after the expiry of
one year. After that period workers return and the construction work again starts. During the last
three months period of strike there was a considerable rise in the price of the building material. S
claimed escalation cost from P. P did not agree to it. S filed a suit in the court of law either to order
the payment of the price of the building material on the basis of escalated price or to allow him to
stop the work without incurring any penal liability towards P. A. S will succeed as strike by his
workers was unexpected and beyond his control.
B. S can succeed as there is an escalation clause in the contract
C. S can not succeed as he has failed to complete the construction work in time and strike can not
be treated as a valid excuse for delay in work. D. S can succeed if he pays penalty to P for
delay.

159
Principle: If the object of an agreement is or becomes unlawful or immoral or opposed to public
policy in the eyes of law, then the courts will not enforce such agreements. Law generally
prohibits Child labour.
Facts: P enters into an agreement with T by which P has to let his house to T for two years and
T has to pay Rs. 20000.00 per month to P as rent. T starts a child care centre in that house. But
after some time in order to earn some money for the maintenance of the centre, T starts sending
the children of the centre on the rotation basis to work for four hour a day in some nearby
chemical and hazardous factories. When P comes to know about this new development, he asks
T either to stop the children from working in factories or to leave his house immediately. T
neither agrees to leave the house nor to stop the children from working in the factories. P files
a suit in the court of law for appropriate relief/ action
A. P can not succeed as the agreement was for the two years and it can not be terminated
before the expiry of that period
B. P can not succeed as the object at the time of making of the agreement was not clear
C. P will succeed as the object of the agreement has become unlawful.
D. P will not succeed if T agrees to share the wages of the children with P
160
Principle: whosoever by his act or omission causes environmental pollution shall be held liable for
any loss caused by such pollution. It shall be no defence in such cases that all due diligence or
reasonable care was taken while carrying out the act or omission in question.
Facts: Hari is carrying on a chemical and fertilizer industry near a bank of a river. In order to prevent
and control any kind of harm to the environment, suitable waste treatment and disposal plants were
installed in the factory. Due to some sudden mechanical/ technical problem, these plants ceased to
work properly and, therefore, caused environmental pollution, which ultimately caused substantial
harm to the environment and to the people living around the factory. Victims of such pollution file
a suit for suitable remedy.
A. Victims can not succeed as necessary precautions to prevent any harm were taken by Hari.
B. Victims can not succeed as the mechanical/ technical problem was sudden and, therefore,
beyond the control of Hari.
C. Victims can succeed as it is the duty of Hari to see that no harm is caused to the
environment/ people due to his activity under any circumstances.
D. Victims could succeed if treatment/ disposal plant were not installed in the factory
161
Principle: If a person transfers movable or immovable property with its full ownership and without
any consideration to some other person, then it is called a gift.
162

Facts: S, who has no child of his own, makes a gift of his house worth Rs. 25 lacs to his nephew R.
After completing all the legal formalities required for a valid gift, S says to R that in case of need
R will provide that house to S for use without any questions. R does not react to it. After one year
of this gift, S really needs that house and request R to make the house available to him, but R refuses
to do so.
A. R cannot refuse as he got the house without paying any consideration for that.
B. R cannot refuse as S is without children.
C. R can refuse as he has become full owner of the house.
D. R can refuse as he himself may be in need of that house.
162
Principle: An agreement to do an act impossible in itself cannot be enforced by a court of law.
Facts: Ramesh agrees with his girl friend Shilpa to pluck stars from the sky through his
extraordinary will power, and bring them down on earth for her within a week. After the expiry of
one week, Shilpa filed a suit for damages against Ramesh for the breach of contract as Ramesh
failed to perform his promise.
A. Shilpa can succeed in getting damages as Ramesh has deceived her.
B. Ramesh cannot be held liable as he honestly believes that his love for Shilpa is true and,
therefore, he will succeed in his endeavour.
C. The court cannot entertain such suits as the act promised under the agreement is impossible in
itself.
D. Ramesh can be held liable for making an absurd promise.

163
Principle: An agreement may be oral or written. However, if a law specifically requires that an
agreement must be in writing then the agreement must be in writing. A law specifically requires
that the agreements relating to transfer of the copyright in novel between an author of a novel and
the producer of a motion picture must be in writing.
Facts: The author of a novel, Love at Lost Sight, had several rounds of discussion with a producer
of motion picture regarding making of a motion picture based on Love at Lost Sight. During the
last discussion, they decided to make a motion picture on Love at Lost Sight. The producer made a
motion picture on Love at Lost Sight after making a payment of Rs. 10, 00,000/- (Ten Lac Only) in
cash to the author who happily accepted this amount as full and final payment. Later on, on the
advice of his lawyer, the author brought a case in a court of law against the producer on the ground
that there is no written agreement between the producer and him.
A. The author is likely to succeed in the case as the agreement is not in accordance
with the law
B. The author cannot succeed in the case as he has given his consent to the agreement
C. The author is not likely to succeed in the case because he has already accepted the
amount of Rs. 10,00,000/- as full an final payment
D. The author can succeed in the case as the consideration is not adequate
164
Principle: A person is said to be of sound mind for the purpose of making a contract if, at the time
when he makes it, he is capable of understanding it and of forming a rational judgment as to its
effect upon his interest.
Facts: X who is usually of sound mind, but occasionally of unsound mind enters into a contract
with Y when he (X) is of unsound mind. Y came to know about this fact afterwards and now wants
to file a suit against X.

A. X cannot enter into contract because he is of unsound mind when he entered into contract.

B. X can enter into contract but the burden is on the other party to prove that he was of unsound
mind at the time of contract.
C. X can enter into contract but the burden is on X to prove that he was of sound mind at the
time of contract. D. None of these.

165
Principle: Whosoever commits any act forbidden by the Indian Penal code with a view to obtain
the consent of any person to enter into an agreement, he cannot get the agreement enforced by law
but the person whose consent has been so obtained may get the agreement enforced by law. The
Indian Penal code defines various offences and prescribes punishments therefor.
Facts: A obtains the consent of B to enter into an agreement by an act amounting to criminal
intimidation under the Indian Penal Code. A brings a case against B for performance of agreement.
A. A will succeed in the case B.
A may succeed in the case
C. B will succeed in the case
D. B will not succeed in the case

166
Principle: A contract between the father and his son is a contract of utmost good faith. In such a
type of contract law presumes that at the time of entering into the contract the father was in a
position to dominate the will of his son. Where one of the parties was in position to dominate the
will of the other party, the contract is enforceable only at the option of the party whose will was so
dominated.
Facts: Ram had advanced a sum of Rs. 10,000/- to his minor son Shyam. When Shyam became
major, his father Ram misused his parental position and entered into an agreement with Shyam and
obtained a bond from him for a sum of Rs. 30,000 in respect of the advance. Whether this agreement
is enforceable?
161
164

A. The agreement is enforceable against Shyam only for Rs. 10,000/-, the actual amount
of money advanced to him
B. The agreement is enforceable against Shyam for Rs. 30,000/- because he has signed
the bond
C. The agreement is enforceable against Shyam because he was major at the time of
agreement.
D. The agreement is not enforceable against Shyam because Ram has misused his position
as father to obtain an unfair advantage.
167
Principle: When at the desire of one person, any other person has done or abstained from doing
something, such act or abstinence or promise is called a consideration for the promise. Only a
promise coupled with consideration is enforceable by law.
Facts: X, the uncle of Y, made a promise to pay him an amount of Rs. 10,000/- as reward if Y quits
smoking and drinking within one year. X also deposited the above mentioned amount in a bank and
informed Y that the said amount will be paid to him if he quits smoking and drinking within one
year. Within a period of six months of making the promise X died. After the expiry of one year of
making the promise by X, Y made a request to the legal heirs of X demanding the promised money.
The legal heirs of X declined the request of Y.
A. The promise of X to Y is enforceable by law because Y has quitted smoking and
drinking
B. The promise of X to Y is not enforceable by law because Y has benefitted by quitting
smoking and drinking
C. The promise of X to Y is enforceable by law because the amount of Rs. 10, 000/- has
been deposited in a bank
D. The promise of X to Y is enforceable by law because X has died within a period of six
months of making the promise
168
Principle: ‘Work’ means literary work, artistic work, dramatic work, musical work,
cinematographic film and sound recording but does not include acting in a cinematographic film.
Only the works, as enumerated above, can be protected under copyright law.
Facts: A very famous actor acted in a cinematographic film. The actor was also the producer and
director of cinematographic film.
A. The acting of the actor can be protected under copyright law
B. The acting of the actor can be protected under copyright law only
as an artistic work
C. The acting of the actor cannot be protected under copyright law
D. The acting of the actor cannot be protected under copyright law as
a cinematographic film 169
Principle: In case where the government is a party, the government shall be the first owner of the
copyright in the work unless there is an agreement to the contrary.
Facts: The Government of the State of X entered into an agreement with a retired Professor of
Botany. The Professor agreed to write a text book on Botany. The Government agreed to pay a sum
of Rs. Ten Lacs to the Professor for this work.
A. The Government of the State of X shall be first owner of copyright in the text book

162
B. The Professor shall be first owner of copyright in the text book
C. Both the Government of the State of X and the Professor shall be the joint owners of
copyright in the text book
D. The Professor shall be first owner of copyright in the text book only if he refuses to
accept the amount of Rs. Ten Lacs from the Government

170
Principle: Licence is an agreement whereby the owner of the copyright agrees to grant an interest
in the copyright to the licencee. Assignment is an agreement whereby the owner of the copyright
transfers all the property rights to the assignee. Property right is a bundle of rights consisting of
right to possess, right to use, right to alienate, and the right to exclude others.
Facts: A, an owner of copyright in a cinematographic film enters into an agreement with B, a film
distributer. B agrees to distribute the film only in Mumbai. A also enters into many such agreements
with other distributers for distribution of his film in other cities.
A. The agreement between A and B is more in the nature of assignment than in the nature
of licence
B. The agreement between A and B is more in the nature of licence than in the nature of
assignment
C. The agreement between A and B is both in the nature of assignment and licence
D. The agreement between A and B is neither in the nature of assignment nor in the nature
of licence
171
Principle: Qui facit per alium facit per se, i.e. he who does things through others does it himself.
Facts: Nisha, the owner of a car, asked her friend Saurabh to take her car and drive the same to her
office. As the car was near her office, it hit a pedestrian Srikant on account of Saurabh’s negligent
driving and injured him seriously. Now Srikant files a suit for damages against Nisha. A. Nisha is
not liable as it was the negligence of Saurabh.
B. Saurabh is solely liable as Nisha was not driving the car.
C. Nisha is liable as Saurabh was driving under her authority and for her purpose.
D. Saurabh will be exempted from liability under the principle of inevitable accident.

172
Principle: Words describing quality of things cannot be registered as trade mark. However, such
words may be registered as trade mark if they acquire a secondary meaning. Words acquire
secondary meaning when people start associating the descriptive words with a person specific.
Facts: A hatchery located in Raipur is owned by ‘X’. X has been using the slogan “new laid eggs
sold here” since 1970 to describe the quality of eggs sold in his hatchery. Over a period of time
because of continuous use of this slogan, people started associating this slogan with X. X filed an
application for registration of the words “new laid eggs” as trade mark in the year 1970.
A. The words will be registered as trade mark
B. The words will not be registered as trade mark
C. The words may be registered as trade mark
D. The words may not be registered as trade mark 173

163
Principle: Whoever takes away anything from the land of any person without that person’s consent
is said to commit theft. A thing so long as it is attached to the earth is not the subject of theft; but it
becomes capable of being the subject of theft as soon as it is severed from the earth. Facts: Y cuts
down a tree standing on the land of X with the intention of dishonestly taking the tree out of X’s
possession without the consent of X. But Y is yet to take away the tree out of X’s possession.
A. Y has committed theft as soon as he came to the land of X
B. Y has committed theft as soon as the tree has been completely cut down by him
C. Y has committed theft as soon as he has started cutting down the tree
D. Y has not committed theft because he is yet to take away the tree out of X possession
174
Principle: res ipsa loquitur i.e. the thing speaks for itself.
Facts: Seema got herself operated for the removal of her uterus in the defendant’s hospital, as there
was diagnosed to be a cyst in one of her ovaries. Due the negligence of the surgeon, who performed
the operation, abdominal pack was left in her abdomen. The same was removed by a second
surgery.
A. Surgeon cannot be held responsible because it is merely a human error.
B. Surgeon can be held responsible but Seema will have to prove in the court of law that
the surgeon was grossly negligent.
C. Surgeon will be responsible and Seema need not to prove surgeon’s negligence because
presence of abdominal pack in her abdomen is sufficient proof therefor. D. None of
the above

175
Principle: Whoever takes away with him any minor person less than sixteen years of age if a male,
or less than eighteen years of age if a female out of the keeping of parents of such minor person
without the consent of such parent, is said to kidnap such minor person.
Facts: A female born on January 01, 1995 got admitted to an undergraduate program of a reputed
University on July 01, 2012. She became friendly with one of the boys, born on June 01, 1994, of
her class. The boy and the girl decided to marry. The parents of the boy agreed but the family of
the girl did not agree. On December 15, 2012 the girl made a call from her Blackberry to the boy.
The girl told the boy to come in his car at a particular place and time. The boy reached the stipulated
place before the stipulated time. He waited there for about half an hour. The girl reached the
stipulated place. She opened the door of the car and sat beside the boy who was on the driving seat.
Without exchanging any pleasantries, the boy drove the car to an unknown place.
The father of the girl lodged an FIR in the nearest police station on January 20, 2013.
A. The boy has committed the offence of kidnapping
B. The boy has not committed the offence of kidnapping
C. The boy has not committed the offence of kidnapping for there is a delay in filing the
FIR
D. The boy has not committed the offence of kidnapping because the girl was his
classmate
176

164
Principle: Whoever voluntarily has carnal intercourse against the order of nature with any man,
woman or animal shall be punished.
Facts: Two adult men were found engaged in carnal intercourse by the police. The police arrested
the men and produced them before the Court.
A. Court will punish the police officer who arrested the men
B. Court will not punish the men for they were adults
C. Court will punish the men
D. Court may be requested to declare the law unconstitutional.
177
Principle: Wherever the causing of a certain effect, or an attempt to cause that effect, by an act or
by an omission, is an offence, it is to be understood that the causing of that effect partly by an act
and partly by an omission is the same offence.
Facts: A intentionally omitted to give food to his father. He also used to beat his father.
Consequently A’s father died.
A. A did not commit any offence
B. A committed only the offence of omitting to give food to his father
C. A committed only the offence of beating of his father D. A committed the offence of
killing of his father
178
Principle: Nothing is an offence which is done by a child under seven years of age.
Facts: A, a child born on January 01, 2005 killed another child ‘B’ on December 30, 2011. A.
A has committed no offence.
B. A has committed the offence as it is heinous crime
C. Killing of one child by another child is not an offence
D. A has not committed the offence for on the date of killing of B, A was a minor
179
Principle: A pact, other than a pact to commit suicide, to suffer any harm is not an offence, provided
the age of the person who has given his consent to suffer harm is above eighteen years. Facts: A
enters into a pact with B, a boy of less than 18 years of age, to fence with each other for amusement.
They agreed to suffer any harm which, in the course of such fencing, may be caused without foul
play.
A. A, while playing fairly, hurts B, A commits no offence
B. A, while playing only unfairly, hurts B, A commits an offence
C. A, while playing fairly, hurts B, A commits an offence
D. A, while playing unfairly, hurts B, A commits no offence
180
Principle: When an act, which would otherwise be an offence, is not that offence by reason of the
youth, the want of maturity of understanding, the unsoundness of mind or the intoxication of the
person doing that act, every person has the same right of private defence against that act which he
would have if the act were that offence. Nothing is an offence which is done in the exercise of the
right of private defence.
Facts: A, under the influence of madness, attempts to kill B. B in order to save his life causes
grievous hurt to A.
A. A has committed an offence

165
B. A has not committed an offence
C. B has committed an offence
D. B has not committed any offence
181
Principle: Mere silence as to facts likely to affect the decision of a person to enter into a contract
does not amount to fraud, unless his silence is in itself equivalent to speech.
Facts: A sells to B a horse which A knows to be of unsound mind. B says to A that if A does not
say anything about the state of mind of horse, then B shall presume that the horse is of sound mind.
A says nothing to B about the mental condition of horse.
A. A has committed fraud
B. A has committed misrepresentation
C. There cannot be a fraud because A says nothing about the mental condition of the horse
D. There can not be a fraud because B did not ask A whether the horse is of sound mind
182
Principle: Whoever by words, either spoken or written brings or attempts to bring into hatred or
contempt, or excites or attempts to excite disaffection towards the Government established by law
in India shall be punished. However, comments expressing disapprobation of the administrative or
other action of the Government without exciting or attempting to excite hatred, contempt or
disaffection, do not constitute an offence.
Facts: A renowned professor of economics wrote a critical comment on the economic policies of
the Government of India in a National Daily. This piece of writing generated academic debate not
only in the print media but also on television and internet. A student of law asked the fellow Indians
on a social networking website to assemble at a particular place for peaceful and silent
demonstration against the said economic policies on a stipulated date and time. The crowed
assembled at that venue and started shouting anti-government slogans. Police arrested the professor.
A. The professor has committed the offence B.
The professor has not committed any offence
C. The student of law has committed the offence
D. The crowed has committed an offence
183
Principle: Where two or more persons have made a complaint for the grant of compulsory licence
to the Copyright Board, the licence shall be granted to that complainant only who, in the opinion
of the Copyright Board, would best serve the interests of the general public.
Facts: Four persons made a complaint for the grant of compulsory licence to the Copyright Board.
A. Licence shall be granted to only one complainant
B. Licence may be granted to two complainants
C. Licence may be granted to three complainants
D. Licence must be granted to all the four complainants

184

166
Principle: Any police officer, not below the rank of a sub-inspector, may, if he is satisfied that an
offence in respect of the infringement of copyright in any work has been, is being, or is likely to
be, committed, seize without warrant, all copies of the work, and all plates used for the purpose of
making infringing copies of the work, wherever found, and all copies and plates so seized shall, as
soon as practicable, be produced before a Magistrate.
Facts: A Superintendent of Police (SP) conducted a raid on a shop and found pirated copies of
books. The SP formed an opinion that infringement of copyright is taking place. He arrested the
shop owner without warrant in the light of above mentioned propositions.
A. The arrest of the shop owner was within the power of the SP
B. The arrest of the shop owner was not within the power of the SP
C. The shop owner can never be arrested
D. SP was not competent to know whether infringement of copyright has taken place
185
Principle: Whoever attempts to commit an offence punishable by the Indian Penal Code and in such
attempt does any act towards the commission of the offence, shall be punished. Stealing is an
offence punishable by the Indian Penal Code.
Facts: A makes an attempt to steal some jewels by breaking open a box, and after so opening the
box, finds that there is no jewel in it.
A. A has committed no offence
B. A has committed the offence of stealing
C. A has attempted to commit the offence of stealing
186
Principle: Whoever by words either spoken or intended to be read, or by signs or by visible
representations, makes or publishes any imputation concerning any person intending to harm, or
knowing or having reason to believe that such imputation will harm, the reputation of such person,
is said to defame that person.
Facts: In a community there is a custom of stealing shoes of bridegroom during the marriage
ceremony. The shoes of the bridegroom were stolen by Y. ‘A’ announced that Z has stolen the
shoes. Everyone present in the marriage party started staring at Z with great surprise. Z felt very
ashamed.
A. A defamed Z
B. A did not defame Z
C. A defamed Z for Z felt very ashamed
D. A defamed the whole marriage party

187
Principle: An employer is liable for the negligence of his employee. But an employer is not liable
for the negligence of his employee if the victim of such negligence is one of his other employees.
Facts: ‘A’ and ‘B’ were working in a factory as unskilled labourers. A was carrying a basket of
stones on his head. B was sitting on the ground. When A crossed B, all of a sudden a stone fell
down from the basket and hit B on his head. B died immediately. A. The owner of the factory will
be liable
B. A and the owner of the factory shall be jointly liable

167
C. The owner of the factory will not be liable
188
Principle: Damages are the money recompense, as far as money can do, for the violation of a right.
Facts: A, an Indian citizen, having a right to vote, was not allowed to cast his vote on the polling
booth, by the returning officer. Name of A was mentioned in the voter’s list. A has also reported at
the polling booth in time. However, the candidate in whose favour A would have cast his vote won
the election. A filed a suit claiming damages.
A. A will be entitled to damages
B. A will not be entitled to damages
C. A will be entitled to only nominal damages
D. A will be entitled to exemplary damages

189
Principle: When a party to a contract has refused to perform, or disabled himself from performing,
his promise in its entirety, the other party may put an end to the contract.
Facts: A engaged B on April 12 to enter his service on June 1, but on May 11, A wrote to B that his
services would not be needed. On May 22, B joined C for employment.
A. B must wait till June 1
B. B must have joined C on May 11 C.
B is not bound to wait till June 1
D. A must pay damages to B

190
Principle: When a person voluntarily agrees to suffer some harm, he is not allowed to complain for
that.
Facts: ‘A’ was one of the spectators at a formula one car race, being held at Gurgaon, on a track
owned by one ‘M’ company. During the race, there was a collision between two racing cars, one
of which was thrown away amidst spectators, thereby causing an injury to ‘A’. ‘A’ claims damages
for the injuries caused to him.
A. M company will be liable for damages because the injury was caused during the race
organized by it
B. M company will not be liable for damages because A had come to see the race on his own
will.
C. M company will not be liable for damages because the collision between the cars was
beyond its control
D. M company will be liable because it has earned huge revenue by way of sale of tickets for
the event

168
191
Principle: An interest which is created on a transfer of property and depends upon the fulfillment
of a condition will fail if the fulfillment of the condition is impossible or is forbidden by law or is
of such a nature that, if permitted, it would defeat the provisions of any law or is fraudulent or
involves or implies injury to the person or property of another or the court regards it as immoral or
opposed to public policy.
Facts: A gives Rs. Ten Lacs to B on condition that B shall marry A’s daughter C. On the date on
which A gave Rs. Ten Lacs to B, C was dead.
A. B’s interest in Rs. Ten Lacs fails because of impossibility
B. B’s interest in Rs. Ten Lacs fails because of immorality
C. B’s interest in Rs. Ten Lacs fails because of prohibition by law D. B’s interest in Rs.
Ten Lacs does not fail
192
Principle: A condition precedent must be complied with before the happening of the event to which
such a condition is attached. Fulfillment of such a condition after the happening of the event is no
fulfillment of condition.
Facts: A transfers Rs. 5000 to B on condition that he shall marry with the consent of C, D and E.
As C, D and E had to go abroad for some business purposes and as the date of marriage was already
fixed, therefore, B marries without the consent of C, D and E, but obtains their consent after the
marriage when C, D and E return to their country.
A. B has fulfilled the condition
B. B has not fulfilled the condition
C. B was free to marry any one without the consent of any body
D. B must divorce his wife as he married her without fulfilling the condition

193
Principle: In an agreement, a condition subsequent must be complied with, to claim the benefit of
that agreement.
Facts: A agrees to transfer a farm to B, provided that, if B does not go to England within three years
after the date of the agreement, his interest in the farm shall cease. B does not go to England within
the term prescribed.
A. B’s interest in the farm continues
B. B’s interest in the farm does not continue
C. B has a fundamental right to go to England or not to go to England and hence the
condition was illegal
D. The agreement between A and B was void
194
Principle: Existence of all the alleged facts is relevant whether they occurred at the same time and
place or at different times and places.
Facts: A, a permanent resident in a foreign country who never visited India, is accused of waging
war against the Government of India by taking part in an armed insurrection in which property is
destroyed, troops are attacked and prisons are broken open.
A. The existence of all the above mentioned alleged facts is relevant

169
B. Only the alleged fact that A is accused of waging war against the Government of India
is relevant
C. The fact that A was a permanent resident in a foreign country who never visited India
is not relevant
D. Only the alleged fact of taking part by A in armed resurrection is relevant
195
Principle: Whoever desires any Court to give judgment about any legal right or liability which
depends on the existence of those facts which he asserts, must prove that those facts exist. Facts: A
asserts that B, C and D have committed an offence of criminal conspiracy and therefore A desires
a Court to give judgment that B, C and D shall be punished for that crime which A says B, C and
D have committed.
A. A must prove that B, C, and D have committed the crime B. B,
C, and D must prove that they have not committed the crime
C. A must prove that B, C, and D were present at the place of crime D.
Police must prove that B, C, and D have committed the crime

196
Principle: The fact that any person was born during the continuance of a valid marriage between
his mother and any man, or within two hundred and eighty days after its dissolution, the mother
remaining unmarried, shall be conclusive proof that he is the legitimate son of that man, unless it
can be shown that the parties to the marriage had no access to each other at any time when he could
have been begotten.
Facts: X and Y married on January 15, 1995. Y, the wife of X, never left her parental home and
never went to her husband’s home. A boy was born to Y on July 15, 1995. For the Court:
A. There shall be a conclusive proof that the boy is the legitimate son of X B.
There shall be no conclusive proof that the boy is the legitimate son of X C.
There shall be a conclusive proof that the boy is the illegitimate son of X
D. There shall be no evidence at all.
197
Principle: An unlawful interference with a person’s use or enjoyment of land, or some right over,
or in connection with it, is a nuisance in law of tort.
Facts: During the scarcity of onions, long queues were made outside the defendant's shop who
having a license to sell fruits and vegetables used to sell only 1 Kg. of onion per ration card. The
queues extended on to the highway and also caused some obstruction to the neighbouring shops.
The neighboring shopkeepers filed a suit for nuisance against the defendant. Which one of the
following decisions will be correct in this suit?
A. The defendant is liable for nuisance
B. The defendant is not liable for nuisance
C. The defendant is liable under the principle of strict liability
D. The plaintiff’s suit should be decreed in favour of the neighbouring shopkeeper
198
Principle: Every agreement in restraint of the marriage of any person, other than a minor, is void.

170
Facts: Qadir Khan died in a road accident. Two co-widows, Sultana and Marjina enter into an
agreement that if any of them will remarry, would forfeit her right to her share in the deceased
husband’s property.
A. The agreement is void because it was restraint of marriage
B. The agreement is not void because no restraint was imposed upon either of two widows for
remarriage.
C. The restraint was partial so agreement is valid
199
Principle: Nothing is an offence merely by reason of its being done with the knowledge that it is
likely to cause harm, if it be done without any criminal intention to cause harm, and in good faith
for the purpose of preventing or avoiding other harm to a person or property.
Facts: Mr. Sharman, the Italian captain of a steam vessel, suddenly and without any fault or
negligence on his part, finds himself near the Kochi coast in such a position that before he can stop
his vessel, he must inevitably run down a boat B with twenty or thirty passengers on board, unless
he changes the course of his vessel, and that by changing his course, he must incur risk of running
down a boat C with only two passengers on board, which he may possibly clear. Whether Sharman
has committed an offence?
A. Sharman has committed no offence because this was done out of necessity
B. Sharman can be held responsible for the act of criminal negligence
C. Sharman can be held responsible for culpable homicide
D. This is a clear case of accident so Sharman cannot be held responsible

200
Principle: Only the Parliament or the State Legislatures have the authority to enact laws on their
own. No law made by State can take away a person’s fundamental right.
Facts: Parliament enacted a law, which according to a group of lawyers is violating the fundamental
rights of traders. The group of lawyers filed a writ petition against the Parliament for enacting such
law and requests the court to quash the law and to direct the Parliament to make a new law.
A. No writ would lie against the Parliament, as the Court has no authority to direct the Parliament
to enact or re-enact a law.
B. The Court can quash the existing law if it violates fundamental right and can direct to make a
new law.
C. The Court can quash the existing law if it violates fundamental right but cannot direct the
Parliament to make a new law. D. None of these.

171

172

UNDER-GRADUATE COURSES
ENGLISH INCLUDING COMPREHENSION
Directions for Questions 1 to 10: Fill in the blank by choosing the most appropriate option.
1) A vote.............. of proposed at the end of the meeting.
(A) thanks were

(B) thank was
(C) thanks had been (D) thanks was
2) During the recession many companies will........... lay off workers.
(A) be forced to

(B) have the force to
(C) forcefully
(D) be forced into
3) She has good............. over the famous foreign languages.
(A) expertise
(B) command
(C) control
(D) authority
4) The Chairman pointed out in favour of the manager that the profitability of the industrial plant had ........
since he took over the administration.
(A) arisen
(B) declined
(C) added
(D) increased
5) When the examinations were over............ went to Paris.
(A) me and Rohan

(B) I and Rohan
(C) Rohan and me ( D) Rohan and I
6) Let's go for a walk...............?
( A) can we
(B) shall we
(C) cant’ we
( D) shouldn't we

7) Had Anil been on time he ............ missed the train.
(A) would not have been

(B) had not
(C) will not have
(D) would not have
8) The most alarming fact is that infection is spreading ....... the state and reaching villages and small towns.
(A) over
(B) across
(C) far
(D) from
9) In big cities people are ...... cut from nature.
(A) off
(B) down
(C) away ( D) out
10) The dissidents ......... a great problem in every political party.
(A) give
(B) cause
(C) pose ( D) hold
Directions for Questions 11 to 15: The sentences given in each question, when properly sequenced,
form a coherent paragraph. Each sentence is labelled with a letter. Choose the most logical order of
sentences from among the given choices to construct a coherent paragraph.
11) (a) Payment for imports and exports is made through a system called foreign exchange. The value of
the money of one country in relation to the money of other countries is agreed upon.
(b) The rates of exchange vary from time to time.
(c) For example, an American dollar or a British pound sterling is worth certain amounts in the money of
other countries.
(d) Sometimes a US dollar is worth 60 rupees in India.
(A) abcd
(B) bacd
(C) acbd
(D) cabd
12) (a) When a dictionary is being edited, a lexicographer collects all the alphabetically arranged citation
slips for a particular word.
(b) The moment a new word is coined. it usually enters the spoken language.
(c) The dictionary takes note of it and makes a note of it on a citation slip.

(d) The word then passes from the realm of hearing to the realm of writing.
(A) abcd
(B) acbd (
C) bacd
( D) head
13) (a) The impression that corruption is a universal phenomenon persists and the people do not cooperate
in checking this evil.
(b) So there is hardly anything that the government can do about it now.
(c) It is regrettable that there is a widespread corruption in the country at all levels.
(d) Recently several offenders were brought to book, but they were not given deterrent punishment.
(A) cdab
(B) adbc (
C) adcb
( D) cbad
14) (a) In all social affairs convention prescribes more or less generally accepted rules of behaviour.
(b) Of course, there is nothing absolute about conventions.
(c) They vary from country to country, from age to age.
(d) Convention has a necessary part to play in the life of everyone.
(A) abcd
(B) adbc (
C) dacb
( D) dabc
15) (a) In fact, only recently there have been serious studies to find out how many of us actually have
nightmares.
(b) Now that is changing.
(c) The study of nightmares has been curiously neglected.
(d) While results so far are inconclusive, it seems fair to say that at least half the population has occasional
nightmares.
(A) cadb
(B) abdc (
C) adcb
( D) cbad
Directions for Questions 16 to 20: Given below are a few foreign language phrases which are commonly
used. Choose the correct meaning for each of the phrases.
16) Ex officio
(A) By virtue of previously held position

(B) Former official
(C) By virtue of office ( D) Outside the office
17) Ultra Vires
(A) Within powers

(B) Full powers
(C) Near powers
(D) Beyond powers
18) Quid pro quo
(A) Something for nothing

(B) Something for something
(C) Everything for something
(D) Something for everything
19) Inter vivos
(A) between the living

(B) among the living and the dead
(C) between the dead
(D) among the dead and the living
20) Corpus juris
(A) body of judges

(B) group of jurists
(C) body of law
(D) knowledge of law
Directions for Questions 21 to 25: Select the word that is spelt CORRECTLY.
21) Which of the following spellings is correct?
(A) Concensus
(B) Consencus
(C) Consenssus
(D) Consensus
(A) Procede
(B) Proceed
(C) Proceede

(D) Proced
(A) Accommodate
(B) Acommodate
(C) Accomodate ( D) Acomodate
24) Which of the following spellings is correct ‘for a page at the beginning of a book’?
(A) Foreward
(B) Forword
(C) Forworde
(D) Foreword
(A) Arguement
(B) Argument
(C) Arguemant (D) Arguemint
Directions for Questions 26 to 30: Choose the explanation that best reflects the spirit of the
idiom/proverb/phrase given in each question.
26) To make clean breast of :
(A) To tell the truth about something

(B) To gain prominence
(C) To destroy before it blooms (D) To praise oneself 27) A man of straw :
(A) A creditable man

(B) A very active man
(C) A man of no or little substance ( D) An unreasonable man 28) A wild-goose chase:
(A) A wise search

(B) A fruitful search
(C) A worthwhile hunt
(D) A futile pursuit
29) Put on the market :
(A) To offer for sale

(B) Alongside the market
(C) Already purchased ( D) None of the above

30) To meet someone halfway :
(A) To show that you are prepared to strain your relationship with someone
(B) To compromise with someone
(C) Confrontation (D) Incongruity
Directions for Questions 31 to 40: The questions in this section are based on a single passage. The
questions are to be answered on the basis of what is stated or implied in the passage. Kindly note that
more than one of the choices may conceivably answer some of the questions. However, you are to choose
the most appropriate answer; that is, the response that most accurately and completely answers the
question.
The spread of education in society is at the foundation of success in countries that are latecomers to
development. In the quest for development, primary education is absolutely essential because it creates the
base. But higher education is just as important, for it provides the cutting edge. And universities are the
life-blood of higher education. Islands of excellence in professional education. such as Indian Institutes of
Technology (IITs) and Indian Institutes of Management (IIMs), are valuable complements but-cannot be
substitutes for universities which provide educational opportunities for people at large.
There can be no doubt that higher education has made a significant contribution to economic development,
social progress and political democracy in independent India. It is a source of dynamism for the economy.
It has created social opportunities for people. It has fostered the vibrant democracy in our polity. It has
provided a beginning for the creation of a knowledge society. But it would be a mistake to focus on its
strengths alone. It has weaknesses that are a cause for serious concern.
There is, in fact, a quiet crisis in higher education in India that runs deep. It is not yet discernible simply
because there are pockets of excellence. an enormous reservoir of talented young people and an intense
competition in the admissions process. And. in some important spheres. we continue to reap the benefits
of what was sown in higher education 50 years ago by the founding fathers of the Republic. The reality is
that we have miles to go. The proportion of our population, in the age group 18-24 . that enters the world
of higher education is around 7 per cent, which is only one-half the average for Asia. The opportunities for
higher education, in terms of the number of places in universities. are simply not enough in relation to our
needs. What is more, the quality of higher education in most of our universities requires substantial
improvement.
It is clear that the system of higher education in India faces serious challenges. It needs a systematic
overhaul, so that we can educate much larger numbers without diluting academic standards. This is
imperative because the transformation of economy and society in the 21st century would depend, in
significant part, on the spread and the quality of education among our people, particularly in the sphere of
higher education. It is only an inclusive society that can provide the foundations for a knowledge society.
The challenges that confront higher education in India are clear. It needs a massive expansion of
opportunities for higher education. to 1500 universities nationwide, that would enable India to attain a gross
enrolment ratio of at least 15 per cent by 2015. It is just as important to raise the average quality of higher
education in every sphere. At the same time, it is essential to create institutions that are exemplars of
excellence at par with the best in the world. In the pursuit of these objectives, providing people with access
to higher education in a socially inclusive manner is imperative. The realisation of these objectives,
combined with access, would not only develop the skills and capabilities we need for the economy but
would also help transform India into a knowledge economy and society.

31) The principal focus of the passage is :
(A) Primary education

(B) Intermediate education
(C) Higher education
(D) Entire education system
32) The style of the passage can be best described as:
(A) Academic
(B) Critical and analytical
(C) Comparative
(D) None of the above
33) What kind of society can provide the foundation for a knowledge society?
(A) Elite society

(B) Contracted society
(C) Exclusive society ( D) Inclusive society
34) According to the passage, which one of the following is INCORRECT?
(A) There are no quality institutes providing excellent professional education in India
(B) Not many people go for higher education in India
(C) Education is the basis of success
(D) All the above options are correct
35) According to the passage, the current state of affairs of higher education in India is:
(A) Satisfactory
(B) Excellent, and there is no need of any expansion of opportunities for higher education
(C) Not good enough, and there is a need of expansion of opportunities for higher education, besides
creating institutions and universities that are models of excellence (D) Not explained in the passage
36) According to the passage, which of the following is NOT a challenge that confronts higher education
in India?
(A) Expanding opportunities for higher education

(B) Creating institutions and universities that are exemplars of excellence
(C) Substantial improvement in the quality of higher education in most of our universities ( D) Getting into
World University Rankings
37) According to the passage, which of the following is CORRECT ெ?
(A) Primary education is very important

(B) Universities are the life-blood of higher education
(C) Transformation of economy and society in the 21st century would depend, in significant part, on the
spread and the quality of education among our people, particularly in the sphere of higher education (
D) All the above propositions are correct
38) Should the entire university system in India be modelled on premier institutes, such as, IITs and IIMs,
providing professional education?
(A) Yes
(B) For sure
(C) No
(D) The passage is silent on this question
39) What is the antonym of the expression ‘cutting edge’?
(A) Conventional
(B) Avant-garde
(C) Advanced
(D) Contemporary
40) What is the meaning of the word ‘discernible’?
(A) Unobtrusive
(B) Noticeable
(C) Unremarkable
(D) Inconspicuous
ELEMENTARY MATHEMATICS (NUMERICAL ABILITY)
41) The next number in the sequence is: 19, 29, 37, 43……………....
(A) 45
(B) 47 (
C)
50
( D) 53
42) An unknown man is found murdered. The corpse has one gold plated tooth, right ear is pierced and a
healed fracture of left hand thumb. A man with these characteristics is reported missing. What are the
chances (probability) of the corpse being the missing man? (Given the occurrence of the gold-plated teeth
in the area, 1 in 5000, left hand thumb fractures 1 in 20000 and of right ear pierces 1 in 100).
(A) 1 in 1000
(B) l in 1000.000
(C) l in 1000000000
(D) 1 in 10.000.000.000

43) Value of “A" in the expression, 5+12x10/(120/240)=Ax10 is :
(A) 11
(B) 24.5
(C) 34
(D) 6.5
44) The Least Common Multiple (L.C.M.) of 0.12, 9.60 and 0.60 is:
(A) 9.60
(B) 0.12
(C) 0.6
(D) None of these
45) There are 30 boys and 40 girls in a class. If the average age of boys is 10 yr and average age of girls is
8 yr. then the average age of the whole class is:
(A) 8 yr
(B) 8.86 yr
(C) 8.2 yr
(D) 9 yr
46) A person spends 1/3 part of his income on food, 1/4 part on house rent and remaining ǭ630 on other
items. The house rent is:
(A) ǭ504
(B) ǭ1512
(C) ǭ378
(D) None of these
47) A person covers a certain distance by car at 21 speed of 30 km/h and comes back at a speed of 40 km/h.
The average speed during the travel is:
(A) 34.3 km/h

(B) 35 km/h
(C) 37.5 km/h
(D) 32.8 km/h
48) An employer reduces the number of employees in the ratio 8:5 and increases their wages in the ratio
7:9. Therefore, the overall wages bill is:
(A) Increased in the ratio 45:56

(B) Decreased in the ratio 56245
(C) Increased in the ratio 13:17

(D) Decreased in the ratio 72:35
49) Father is 3 yr. older than the mother and the mother's age is now twice the daughter's age. If the daughter
is 20 yr. old now, then the father’s age when the daughter was born is:
(A) 20 yr.
(B) 40 yr. (
C) 43 yr.
( D) 23 yr.
50) If 80% of A = 20% of B and B = 5x% of A, then the value of x is:
(A) 75
(B) 80 (
C)
90
( D) 85
51) A mixture of 40 L of alcohol and water contains 10% water. How much water should he added to this
mixture so that the new mixture contains 20% water?
(A) 9L
(B) 5L
(C) 7L
(D) 6L
52) ‘A’ can do a piece of work in 20 days and ‘B’ can do the same work in 15 days. How long will they
take to finish the work, if both work together?
(A) 13 days
(B) 10 days
(C) 8 days
(D) 17 days
53) A man can row 5 km/h in still water. If the speed of the current is 1 km/h, it takes 3 h more in upstream
than in the downstream for the same distance. The distance is:
(A) 36 km
(B) 24 km (
C) 20 km
( D) 32 km

54) A starts a business with ǭ5000 and B joins the business 5 months later with all investment of ǭ6000.
After a year, they earn a profit of ǭ34000 . Find the shares of A and B in the profit amount depending on
their individual investment.
(A) ǭ20000, ǭ14000

(B) ǭ16000, ǭ16000
(C) ǭ14000, ǭ20000
(D) None of these
55) A farmer has some hens and some goats. If the total number of animal heads is 80 and the total number
of animal feet is 200, what is the total number of goats?
(A) 40
(B) 60 (
C)
20
(D) Cannot he determined
56) A square field has its area equal to 324 m2. The perimeter of the field is:
(A) 36 m
(B) 72 m
(C) 18 m
(D) 6501 m
57) A closed metal box measure 30 cm x 20 cm x 10 cm. Thickness of the metal is 1cm. The volume of the
metal required to make the box is:
(A) 1041 cm3

(13) 6000 cm3
(C) 4536 cm3
(D) 1968 cm3
58) The difference between the simple interest and the compound interest (compounded annually) on ǭ2000
for 2 yr at 8% per annum will be:
(A) ǭ10
(B) ǭ20 (C) ǭ13
(D) ǭ25
59) A dealer marked his goods 20% above the cost price and allows a discount of l0%. Then the gain
percent is:
(A) 2%

(B) 4% (
C) 6%
( D) 8%
60) A man went to the Reserve Bank of India with ǭ2000. He asked the cashier to give him ǭ10 and ǭ20
notes only in return. The man got 150 notes in all. How many notes of ǭ10 did he receive?
(A) 100
(B) 150
(C) 50
(D) 70
GENERAL KNOWLEDGE AND CURRENT AFFAIRS
61) Which of the following Judges of the Supreme Court of India is famously known as the ‘Green Judge’?
(A) Justice VR Krishna

Iyyar
(B) Justice PN Bhagwati (
C) Justice Kuldip Singh
( D) Justice BN Kirpal
62) Law Day is observed on :
(A) 26th January

(B) 26th May
(C) 15th August
(D) 26th November
63) In which year, Defence Research & Development Organisation (DRDO) was formed by the
amalgamation of the Technical Development Establishment (TDE) of the Indian Army and the Directorate
of Technical Development & Production (DTDP) with the Defence Science Organisation ( DSO ):
(A) 1955
(B) 1958 (
C )
1959
( D ) 1963
64) The Reserve Bank of India was established in the year:
(A) 1858
(B) 1935 (
C )
1947
( D ) 1950

65) Lord Buddha's image is sometimes shown with the hand gesture, called ‘Bhumisparsha Mudra’. It
signifies:
(A) Buddha’s calling of the Earth to watch over Mara and to prevent Mara from disturbing his meditation.
(B) Buddha’s calling of the Earth to witness his purity and chastity despite the temptations of Mara.
(C) The gesture of debate or discussion/argument.
(D) Both (A) and (B) are correct.
66) Which of the following statements is INCORRECT about Fundamental Duties under the Constitution
of India? It shall be the duty of every citizen of India
(A) To uphold and protect the sovereignty, unity and integrity of India.
(B) To strive towards excellence in all spheres of individual and collective activity so that the nation
constantly rises to higher levels of endeavour and achievement.
(C) Who is a parent or guardian to provide opportunities for education to his child or, as the case may be,
ward between the age of six and fourteen years. (D) To vote in public elections.
67) Which one of the following scripts of ancient India was mostly written from right to left?
(A) Nandnagari
(B) Brahmi
(C) Kharoshti ( D) Sharada
68) During the time of which Mughal Emperor did the East India Company establish its first factory in
India?
(A) Akbar
(B) Jahangir
(C) Shahjahan
(D) Aurangzeb
69) Who, among the following, first translated the Bhagwat Gita into English?
(A) Charles Wilkins

(B) Alexander Cunningham
(C) William Jones ( D) James Prinsep
70) Match List I with List II and select the correct answer using the codes given below the lists:
List I (Author) List II (Work)

a Devaki Nandan Khatri 1 Chandrakanta
b Premchand 2 Durgeshnandini
c Bankim Chandra Chattopadhyay 3 Nil Darpan
4 Seva Sadan Codes:
(A) a-4; b-3; c-l
(B) a-l; b-4; c-3

(C) a-2; b-1; c-3 (D) a-l; b-4; c-2
71) Match List I with List 11 and select the correct answer using the codes given below the lists:
List I (Person) List II (Position)
a Nagendra Singh 1 Chief Election Commissioner of India
b SH Kapadia 2 President of the International Court of Justice
c NR Madhava Menon 3 Former Chief Justice of India
d VS Sampath 4 Legal educator and Founder-Director of National Law School of
India University
Codes:
(A) a-2; b-3; c-1; d-4
(B) a-4; b-3; c-2; d-1
(C) a-l; b-2; c-4: d-3
(D) a-2; b-3; c-4; d-1
72) Who was not a Chief Justice of India?
(A) Justice M Patanjali Sastri

(B) Justice KN Wanchoo
(C) Justice HR Khanna
(D) Justice MN Venkatachaliah
73) Who was the first Attorney-General for India?
(A) CK Daphtary
(B) MC Setalvad
(C) Niren De
(D) LN Sinha
74) Under the leadership of Mahatma Gandhi, the Civil Disobedience Movement, launched in 1930 , started
from?
(A) Sabarmati
(B) Dandi
(C) Sevagram
(D) Champaran
75) Match List I with List II and select the correct answer using the codes given below the lists:
List I (Events) List II (Results)

a Dandi March 1 Communal electorate
b Chauri Chaura 2 Illegal manufacture of salt
c Simon Commission 3 Country-wise agitation
d Morley Minto Reforms 4 Withdrawal of a movement

Codes:
(A) a-l; b-2; c-3; d-4
(B) a-4; b-3; c-2: d-1
(C) a-2: b-4; c-3; d-1
(D) a-1; b-4; c-3; d-2
76) Which of the following planets has the maximum number of natural satellites?
(A) Earth
(B) Mars
(C) Jupiter
(D) Saturn
77) In India, the interest rate on savings accounts in all the nationalised commercial banks is fixed by?
(A) Union Ministry of Finance

(B) Union Finance Commission
(C) Indian Banks’ Association ( D) None of the above
78) Solvents are the substances used to dissolve other substances. Consider the following substances: (1)
Water (2) Ether (3) Toluene (4) Chloroform (5) Ethanol, Which of the above can be used as solvents?
(A) 1 and 2
(B) 2 and 3
(C) 3, 4 and 5
(D) All of these
79) Viruses are parasitic, having DNA/RNA; but, they can be crystallised and lack respiration. Therefore,
they are treated as:
(A) Living beings

(B) Non-living beings
(C) Both living and non-living beings ( D) None of the above
80) Who is the winner of the coveted Dadasaheb Phalke Award for the year 2013?
(A) Javed Akhtar

(B) Gulzar
(C) AR Rahman
(D) Indeevar
81) Who among the following has been recently appointed as brand ambassador for Central Reserve Police
Force (CRPF):
(A) Aamir Khan

(B) Mahendra Singh Dhoni
(C) MC Mary Kom (D) Sania Mirza
82) Till date (2014), how many people have been awarded the Bharat Ratna Award?
(A) 40
(B) 41 (
C)
42
( D) 43
83) Which country Malala Yousafzai belongs to?
(A) Pakistan
(B) Afghanistan
(C) The USA (D) England
84) Who recently became the first woman chief of the State Bank of India?
(A) Arundhati Bhattacharya

(B) Shubhalakshmi Panse
(C) Vijaylakshmi Iyer ( D) Chanda Kochhar
85) Who is the Chairman of the 14th Finance Commission?
(A) Dr M Govinda Rao

(B) Dr Vijay Kelkar
(C) Dr YV Reddy
(D) Dr Raghuram Rajan
86) The Chairperson of the Seventh Pay Commission is :
(A) Justice BN Srikrishna

(B) Justice DK Jain
(C) Justice AP Shah
(D) Justice AK Mathur
87) Which one of the following is NOT correctly matched?
United Nations Specialized Agency Headquarters

A International Civil Aviation Organization Montreal
B World Trade Organization Geneva
C United Nations Industrial Development Organization Brussels

D International Fund for Agricultural Development Rome
88) The First Five Year Plan of India was based on :
(A) John W Miller Model

(B) PC Mahalanobis Model
(C) Gadgil Yojana
(D) Herrod-Domar Model
89) Which one of the following measures is NOT likely to aid in improving India’s balance of payment
position?
(A) Promotion of import substitution policy

(B) Devaluation of rupee
(C) Imposition of higher tariff on imports
(D) Levying the higher duty on exports
90) Find out the correct chronological sequence of the following persons’ visit to India at one time or
another: (1) Fa-Hien (2) I-Tsing (Yijing) (3) Megasthanese (4) Hiuen-Tsang.
(A) l,3,2, 4
(B) l.3,4, 2
(C) 3,1,4, 2
(D) 3,1,2, 4
91) Which was the first newspaper to be published in India?
(A) Bombay Samachar

(B) The Hindu
(C) Bengal Chronicle (D) Bengal Gazette
92) The change in the colour of stars is linked to :
(A) Variation in their surface temperature

(B) Variation in their distance from the earth
(C) Fluctuations in their composition and size
(D) Irregular absorption or scattering in earth’s atmosphere
93) Which one of the following does NOT remain to be a planet now?
(A) Neptune
(B) Uranus
(C) Pluto
(D) Venus
94) Who was appointed as the 23rd Governor of the Reserve Bank of India?

(A) KC Chakrabarty
(B) Urijit Patel
(C) Raghuram Rajan ( D) D Subbarao
95) Which one of following offices is held during the pleasure of the President of India?
(A) Vice-President
(D) Governor of a State
(C) Chief Justice of India
(D) Comptroller and Auditor General of India
96) Who was the first winner of the prestigious Jnanpith Award?
(A) Tarasankar Bandyopadhyay

(B) Kuppali Venkatappagowda Puttappa
(C) Sankara Kump
(D) Umashankar Joshi
97) Match List I with List II and choose the correct answer:
List I
(a) Visakhadatta
(b) Varahamihira
(c) Sushruta
(d) Brahmagupta
List II
(1) Surgery
(2) Drama
(3) Astronomy (4) Mathematics Codes:
(a) (b) (c) (d
)
(A) 1 3 4 2
(B) 2 1 3 4
(C) 2 3 1 4
(D) 3 4 1 2
98) Who was among the following honoured with Arjun Award in Chess for the year 2013?
(A) Kavita Chahal

(B) Parimarjan Negi
(C) Ronjan Sodhi
(D) Abhijeet Gupta
99) Economic growth rate projected by the IMF for India in the fiscal year 2014-15 is :
(A) 5.4 per cent

(B) 5.5 per cent
(C) 5.6 per
cent
( D) 5.7 per cent
100) Who was sworn in as the Prime Minister of Italy on 22nd February 2014?
(A) Oleksandr Turchynov

(B) Matteo Renzi
(C) Enrico Letta
(D) Giorgio Napolitano
101) Which one of following is the highest peacetime gallantry award of India?
(A) Param Vir Chakra

(B) Ashok Chakra
(C) Maha Vir Chakra
(D) Kirti Chakra
102) Which one of the following gases is lighter than air?
(A) Carbon dioxide

(B) Chlorine
(C) Oxygen
(D) Hydrogen
103) Name the scientist who is known as the father of modern genetics:
(A) A Jean-Baptiste Lamarck

(B) Hugo de Vries
(C) Gregor Johann Mendel ( D) Charles Darwin
104) Which year was designated by the United Nations as International Women’s Year?
(A) 1974
(B) 1975 (
C )
1976
( D ) 1977
105) Mention the correct abbreviation for ATM:
(A) Automated Teller Machine

(B) Any Time Money
(C) All Time Money

(D) Auto-limited Teller Machine
106) General Election is being held in India from 7 April to 12 May 2014 to constitute:
(A) 14th Lok Sabha

(B) 15th Lok Sabha
(C) 16th Lok Sabha
(D) 17th Lok Sabha
107) Mention the name of the current Chief Justice of India:
(A) Justice Altamas Kabir

(B) Justice P Sathasivam
(C) Justice R M Lodha
(D) Justice H L Dattu
108) The 9th Ministerial Conference of the WTO, held during 3 December-6 December 2013, was
concluded at:
(A) Geneva, Switzerland

(B) Kaula Lumpur, Malaysia
(C) Warsaw, Poland
(D) Bali, Indonesia
109) Nobel Prize in Literature for the year 2013 was awarded to:
(A) Mo Yan
(B) James E Rothman
(C) Lars Peter
(D) Hansen Alice Munro
110) Which one of the following satellites was successfully launched by the ISRO’s Polar Satellite Launch
Vehicle (PSLV-C24) on 4th April 2014?
(A) IRNSS-1 B
(B) GSAT-14
(C) INSAT-3 D
(D) SARAL
LOGICAL REASONING
Directions for Questions 111 to 113 : Read the following information carefully and answer the questions
given below:

Five friends Satish. Rajesh, Rehman. Rakesh. and Vineet. - each presents one paper to their class on
Physics. Zoology, Botany, English, or Geology - one day a week. Monday through Friday.
(i) Vineet does not present English and does not give his presentation on Tuesday.
(ii) Rajesh makes the Geology presentation, and does not do it on Monday or Friday.
(iii) The Physics presentation is made on Thursday.
(iv) Rehman makes his presentation, which is not on English, on Wednesday.
(v) The Botany presentation is on Friday, and not by Rakesh. (vi) Satish makes his presentation on
Monday.
111) What day is the English presentation made?
(A) Friday
(B) Monday
(C) Tuesday
(D) Wednesday
112) What presentation does Vineet do?
(A) English
(B) Geology
(C) Physics ( D) Botany
113) What day does Rakesh make his presentation on?
(A) Monday
(B) Tuesday
(C) Wednesday
(D) Thursday
Directions for Questions 114 to 118: Each question contains a statement on relationship and a question
regarding relationship based on the statement. Choose the correct option.
114) Pointing to a photograph, a man said, “I have no brother or sister but that man's father is my father's
son”. Whose photograph was that?
(A) His father’s

(B) His own
(C) His son’s
(D) His nephew’s
115) Ranjan introduces Abhay as the son of the only brother of his father’s wife. How is Abhay related to
Ranjan?
(A) Son
(B) Brother

(C) Cousin ( D) Uncle
116) Pointing to a lady on the stage, Bhumika said. "She is the sister of the son of the wife of my husband.
How is the lady related to Bhumika?
(A) Cousin
(B) Sister-in-law
(C) Sister
(D) Daughter
117) Pinky, who is Victor's daughter, says to Lucy, “Your mother Rosy is the younger sister of my father,
who is the third child of Joseph”. How is Joseph related to Lucy?
(A) Father-in-law
(B) Father
(C) Maternal uncle ( D) Grandfather
118) Pramod told Vinod, “Yesterday I defeated the only brother of the daughter of my grandmother”.
Whom did Promod defeat?
(A) Father
(B) Son
(C) Father-in-law ( D) Cousin
Directions for Questions 119 to 123: Read the information given below to answer the questions.
(i) In a family of six persons, there are people from three generations. Each person has separate profession
and also each one likes different colours. There are two couples in the family.
(ii) Charan is a CA and his wife neither is a doctor nor likes green colour.
(iii) Engineer likes red colour and his wife is a teacher.
(iv) Vanita is mother-in-law of Namita and she likes orange colour.
(v) Mohan is grandfather of Raman and Raman, who is a principal, likes black colour.
(vi) Sarita is granddaughter of Vanita and she likes blue colour. Sarita’s mother likes white colour.
119) Who is an Engineer?
(A) Sarita
(B) Vanita
(C) Namita ( D) Mohan
120) What is the profession of Namita?
(A) Doctor
(B) Engineer
(C) Teacher
(D) Cannot be determined.

121) Which of the following is the correct pair of two couples?
(A) Mohan - Vanita and Charan - Sarita

(B) Vanita - Mohan and Charan - Narnita
(C) Charan - Namita and Raman - Sarita (D) Cannot be determined
122) How many ladies are there in the family?
(A) Two
(B) Three
(C) Four
(D) None of these
123) Which colour is liked by CA?
(A) White
(B) Blue
(C) Black
(D) None of these
Directions for Questions 124 to 128: Read the information given below carefully and answer the
questions.
124) Two buses start from the opposite points of a main road. 150 kms apart. The first bus runs for 25 kms
and takes a right turn and then runs for 15 kms. It then turns left and runs for another 25 kms and takes the
direction back to reach the main road. In the meantime, due to a minor breakdown, the other bus has run
only 35 kms along the main road. What would be the distance between the two buses at this point„?
(A) 65 kms
(B) 75 kms (
C) 30 kms
( D) 85 kms
125) ‘G’, ‘H’, ‘I’. ‘J’, ‘K’, ‘L’, ‘M’, ‘N’ are sitting around a round table in the same order for group
discussion at equal distances. Their positions are clock wise. If ‘M’ sits in the north, then what will be the
position of ‘J’?
(A) East
(B) South-East
(C) South
(D) South-West
126) Roshan, Vaibhav. Vinay and Sumit are playing cards. Roshan and Vaibhav are partners. Sumit faces
towards North. If Roshan faces towards West, then who faces towards South?
(A) Vinay

(B) Vaibhav
(C) Sumit
(D) Data is inadequate
127) Five boys are standing in a row facing East. Pavan is to the left of Tavan, Vipin. Chavan. Tavan,
Vipin, Chavan are to the left of Nakul. Chavan is between Tavan and Vipin. If Vipin is fourth from the left,
then how far is Tavan from the right?
(A) First
(B) Second
(C) Third
(D) Fourth
128) One morning after sunrise. Suraj was standing facing a pole. The shadow of the pole fell exactly to
his right. Which direction was Suraj facing?
(A) West
(B) South
(C) East
(D) Data is inadequate
Directions for Questions 129 to 130: Read the information given below to answer the questions.
Diana is three times older than Jackson; Edward is half the age of Stephen. Jackson is older than Edward.
129) Which one of the following can be inferred?
(A) Jackson is older than Stephen

(B) Diana is older than Stephen
(C) Diana may be younger than Stephen ( D) None of the above
130) Which one of the following information will be sufficient to estimate Diana's age?
(A) Edward is 10 year old

(B) Both Jackson and Stephen are older than Edward by the same number of years
(C) Both A and B above
Directions for Questions 131 to 135: Study the sequence/pattern of letters or numbers carefully to work
out the pattern on which it is based, and answer what the next item in the sequence must be. For example,
the sequence ‘A, C, E, G,?’ has odd numbered letters of alphabet; therefore, the next item must be ‘I’.
131) 0, 3, 8, 15, ?
(A) 24

(B) 26 (
C)
35
( D) None
132) 8, 16, 28, 44, ?
(A) 60
(B) 64 (
C)
62
( D) 66
133) 0, 6, 24, 60, 120, 210, ?
(A) 290
(B) 240 (
C )
336
( D ) 504
134) POQ, SRT, VUW, ?
(A) XVZ
(B) XZY (
C) YZY
(D) YXZ
135) A1, C3, F6, J10, O15, ?
(A) U 21
(B) V21
(C) T 20
(D) U 20
Directions for Questions 136 to 140: Two words, which have a certain relation, are paired. Select a
correct option to substitute the question mark so as to make a similar relational pair with the word
given after double colon ( ) 136) Bow : Arrow :: Pistol: ?
(A) Gun
(B) Shoot
(C) Rifle
(D) Bullet
137) Eye : Wink :: Heart: ?

(A) Throb
(B) Move (
C) Pump
( D) Respirate
138) Ocean : Water :: Glacier : ?
(A) Cooling
(B) Cave
(C) Ice
(D) Mountain
139) Prima facie : On the first view :: In pari delicto: ?
(A) Both parties equally at fault

(B) While litigation is pending
(C) A remedy for all disease (D) Beyond powers
140) Delusion : hallucination :: Chagrin : ?
(A) Illusion
(B) Ordered
(C) Cogent
(D) Annoyance
Directions for Questions 141 to 142: Each question comprises two statements (numbered as I and II).
You have to take the statements as true even if they seem to be at variance with commonly known facts.
Read all the conclusions and then decide which of the given conclusions logically follow from the given
statements, disregarding commonly known facts.
141) (I) All contracts are agreements.

(II) All agreements are accepted offers.
Which of the following derivations is correct?
(A) All accepted offers are contracts

(B) All agreements are contracts
(C) All contracts are accepted offers ( D) None of the above
142) (I) Some beautiful women are actresses.

(II) All actresses are good dancers.
Which of the following derivations is correct?
(A) Some beautiful women are good dancers

(B) All good dancers are actresses
(C) Both (A) and (B)

Directions for Questions 143 to 145: Two statements are given below followed by two conclusions (I
and II). You have to consider the two statements to be true even if they seem to be at variance with
commonly known facts. You have to decide which of the conclusions, if any, follow from the given
statements.
143) Statements: Some books are magazines.
Some magazines are novels.
Conclusions: (I) Some books are novels.
(II) Some novels are magazines.
(A) Only (I) follows

(B) Only (II) follows
(C) Both (I) and (II) follow
(D) Neither (I) nor (II) follows
144) Statements: All students like excursions.

Some students go for higher education.
Conclusions: (I) Students who go for higher education also like excursions.
(II) Some students do not go for higher education, but like excursions.
145) Statements: All good hockey players are in the Indian Hockey
team. ‘X’ is not a good hockey player.
Conclusions: (I) ‘X’ is not in the Indian Hockey team.
(II) ‘X’ wants to be in the Indian Hockey team.
Directions for Questions 146 to 148: In each of the following questions. a related pair of words is
followed by four pairs of words or phrases. Select the pair that best expresses a relationship similar to
the one expressed in the question pair.
146) India : Tricolour
(A) China : Sickle and Hammer

(B) UK : Red Cross
(C) USA : Stars and Stripes

147) Statute : Law
(A) Proviso : Clause

(B) Chapter : Exercise (C)
University : School
(D) Section : Illustration
148) Buddhists : Pagoda
(A) Parsis : Temple

(B) Christians : Cross
(C) Jains : Sun Temple
(C) Jews : Synagogue
Directions for Questions 149 to 150: Each question consists of five statements (a-e) followed by options
consisting of three statements put together in a specific order. Choose the option which indicates a valid
argument; that is, where the third statement is a conclusion drawn from the preceding two statements.
149) a. Law graduates are in great demand.

b. Rajesh and Krishna are in great demand.
c. Rajesh is in great demand.
d. Krishna is in great demand.
e. Rajesh and Krishna are law graduates.
Choose the correct option:

(A) abe
(B) ecd (
C) aeb
( D) cba
150) a. All captains are great players.

b. Some captains are successful sports administrators.
c. Ritwik is a great player.
d. Ritwik is a captain and successful sports administrator.
e. Some successful sports administrators are great players.
Choose the correct option:

(A) acd
(B) abe (
C) dca
( D) edc
LEGAL APTIUDE

Directions for Questions 151 to 200: This section consists of fifty (50) questions. Each question consists
of legal propositions/principles (hereinafter referred to as ‘principle’) and facts. These principles have
to be applied to the given facts to arrive at the most reasonable conclusion. Such principles may or may
not be true in the real sense, yet you have to conclusively assume them to be true for the purposes of this
section. In other words, in answering the following questions, you must not rely on any principles except
the principles that are given herein below for every question. Further, you must not assume any facts
other than those stated in the question. The objective of this section is to test your interest towards study
of law, research aptitude and problem solving ability even if the ‘most reasonable conclusion’ arrived at
may be unacceptable for any other reason. It is not the object of this section to test your knowledge of
law.
151) Principle: When one person signifies to another his willingness to do or to abstain from doing
anything, with a view to obtaining the assent of that other to such act or abstinence, he is said to make a
proposal. The expression of willingness/desire results in a valid proposal only when it is made/addressed
to some person(s).
Facts: ‘X’ makes the following statement in an uninhabited hall: ‘I’ wish to sell my mobile phone for
ǭl,000.’
Which of the following, derivations is CORRECT?
(A) 'X' made a statement that resulted in a promise

(B) made a statement that resulted in a proposal
(C) ‘X’ made a statement that did not result in any proposal ( D) made a statement that resulted in an
agreement
152) Principle: A proposal (offer) should be made with an intention that after its valid acceptance. a legally
binding promise or agreement will be created. The test for the determination of such intention is not
subjective, rather it is objective. The intention of the parties is to be ascertained from the terms of the
agreement and the surrounding circumstances under which such an agreement is entered into. As a general
rule, in the case of arrangements regulating social relations, it follows as a matter of course that the parties
do not intend legal consequences to follow. On the contrary, as a general rule, in the case of arrangements
regulating business affairs, it follows as a matter of course that the parties intend legal consequences to
follow. However, the above rules are just presumptive in nature, and hence, can be rebutted.
Facts: One morning while having breakfast. ‘X’, the father, says to ‘Y’ (X's son), in a casual manner,
‘I shall buy a motorbike for you if you get through the C LAT.’ Which of the following derivations is
CORRECT?
(A) ‘X’ made a statement that resulted in an enforceable promise

(B) ‘X’ made a statement that resulted in a valid proposal
(C) ‘X’ made a statement that resulted in an enforceable agreement
(D) ‘X’ made a statement that did not result in any enforceable agreement
153) Principle: Acceptance (of offer) must be communicated by the offeree to the offeror so as to give rise
to a binding obligation. The expression ‘by the offeree to the offeror’ includes communication between
their authorised agents.

Facts: ‘X’ made an offer to buy Y’s property for a stipulated price. ‘Y’ accepted it and communicated his
acceptance to ‘Z’, a stranger.
Which of the following derivations is CORRECT ?
(A) Y’s acceptance resulted in an agreement

(B) Y’s acceptance did not result in any agreement
(C) Y’s acceptance resulted in a contract
(D) Y’s acceptance resulted in a promise
154) Principle: Acceptance should be made while the offer is still subsisting. The offeror is free to retract
his offer at any time before his offer gets accepted by the offeree. Once the offer is withdrawn or is lapsed,
it is not open to be accepted so as to give rise to a contract. Similarly, if a time is prescribed within which
the offer is to be accepted, then, the offer must be accepted within the prescribed time. And. if no time is
prescribed, then, the acceptance must be made within a reasonable time. ‘What is a reasonable time’ is a
question of fact which is to be determined by taking into account all the relevant facts and surrounding
circumstances.
Facts: ‘X’ makes an offer to ‘Y’ to sell his equipment for ǭ1,000.00. No time is specified for the acceptance.
‘Y’ sends his reply two years after receiving the offer. Which of the following derivations is CORRECT?
(A) There arises a contract between ‘X’ and ‘Y’ to sell/buy the equipment in question for ǭ1,000.00 (B)
There does not arise any contract between ‘X’ and ‘Y’ to sell/buy the equipment in question for
ǭ1,000.00
(C) ‘X’ is bound by his offer, and hence, cannot reject the acceptance made by ‘Y’ (D)
There arises a promise by ‘Y’ to buy the equipment
155) Principle: Minor ெs agreement is void from the very beginning. It can never be validated. It cannot
be enforced in the court of law.
Facts: ‘A’, a boy of 16 years of age, agrees to buy a camera from ‘B’, who is a girl of 21 years of age.
Which of the following derivations is CORRECT?
(A) There arises a contract between ‘A’ and ‘B’ to sell/buy the camera in question
(B) There arises an enforceable agreement between ‘A’ and ‘B’ to sell/buy the camera in question
(C) There does not arise any contract between ‘A’ and ‘B’ to sell/buy the camera in question (D) There
arises a voidable contract between ‘A’ and ‘B’ to sell/buy the camera in question
156) Principle: A contract which is duly supported by real and lawful consideration is valid
notwithstanding the fact that the consideration is inadequate. The quantum of consideration is for the parties
to decide at the time of making a contract, and not for the courts (to decide) when the contract is sought to
be enforced. An agreement to which the consent of the promisor is freely given is not void merely because
the consideration is inadequate; but the inadequacy of the consideration may be taken into account by the
Court in determining the question whether the consent of the promisor was freely given.

(A) There is a contract between 'X' and 'Y'

(B) There is an agreement between 'X' and 'Y' which can be enforced by the court of law
(C) There is an agreement between 'X', and 'Y' which cannot be enforced by the court of law (D) There is
a contract between 'X' and 'Y' which voidable at the option of 'Y'
160) Principle: Agreements in restraint of marriage are void.
Facts: 'X' enters into an agreement with 'Y' where under he agrees not to many anybody else other than a
person whose name starts with the letter and promises to pay ǭ1,00,000/- to 'Y' if he ( 'X') breaks this
agreement.
(A) There is a contract between 'X' and 'Y'

(B) There is an agreement between 'X' and 'Y' which can be enforced by the court of law
(C) There is an agreement between 'X', and 'Y' which cannot be enforced by the court of law (D) There is
a voidable contract between 'X' and 'Y'
161) Principle: Vicarious liability is the liability of the Master or Principal for the tort committed by his
servant or agent, provided the tort is committed in the course of employment. The Master or Principal is
not liable for private wrongs of the servant/ agent.
Facts: 'X' hands over some cash money at his house to 'Y', who is his (X's) neighbour and is also cashier
in a bank, to be deposited in A's account in the bank. Instead of depositing the money, 'Y' misappropriates
it.
Which of the following statements depicts correct legal position in this given situation?
(A) The bank would not be liable because 'Y' did not do any wrong in the course of his employment
(B) The bank would be vicariously liable because 'Y' was the employee of the bank
(C) The bank would not be liable because 'Y' did not do any wrong (D) The bank would be liable because
'Y' acted as bank's agent
162) Principle: A person has no legal remedy for an injury caused by an act to which he has consented.
Facts: 'R', a cricket enthusiast, purchases a ticket to watch a T20 match organised by the Indian Premier
League (IPL). During the match, a ball struck for six hits 'R' on his body, and injures him. He sues IPL for
compensation for the medical expenses.
(A) 'R' should be compensated as he purchased the ticket to get entertainment and not to get injured
(B) 'R' would fail in his action, as he voluntarily exposed himself to the risk
(C) IPL would be liable as it did not ensure that the spectators were protected from the risk of such injuries

163) Principle: Ignorance of law excuses no one.
Facts: 'X' fails to file his income tax returns for a considerable number of years. The Income Tax
department serves upon him a 'show-cause notice' as to why proceedings should not be initiated against
him for the recovery of the income tax due from him with interest and penalty.
(A) 'X' may defend himself by taking the plea that his legal advisor had not advised him to file the return
(B) 'X' would have to pay the due, as ignorance of law and failure to comply with law is no legal ground
of defence
(C) 'X' may defend himself successfully by taking the plea that he was unaware of any such law being in
force
164) Principle: Damage without the violation of a legal right is not actionable in a court of law. If the
interference with the rights of another person is not unlawful or unauthorised, but a necessary consequence
of the exercise of defendant's own lawful rights, no action should lie.
Facts: There was an established school ('ES') in a particular locality. Subsequently, a new school ('NS')
was set up in the same locality, which charged lower fees, on account of which people started patronising
the new school. Because of the competition, 'ES' had to reduce its fees. 'ES' filed a case against 'NS' saying
that 'NS' had caused it (‘ES’) financial loss and, thus, claimed compensation.
(A) Since no legal right of 'ES' had been violated, therefore, as such, no compensation could be granted
(B) Since damage is caused to 'ES', therefore, it should be awarded compensation
(C) 'ES' should be awarded compensation, as opening of school in competition is not good
(D) No compensation could be granted, as reduction in fees is good for the public
165) Principle: Whenever there is an invasion of a legal right, the person in whom the right is vested, is
entitled to bring an action though he has suffered no actual loss or harm, and may recover damages
(compensation).
Facts: 'A' was a qualified voter for the Lok Sabha election. However, a returning officer wrongfully refused
to take A's vote. In spite of such wrongful refusal, the candidate, for whom 'A' wanted to vote, won the
election. But, 'A' brought an action for damages:

(A) Since no legal right of 'A' had been violated, therefore, as such, no compensation could be granted
(B) Since legal right of 'A' had been violated, therefore, compensation should be granted
(C) No compensation could be granted, as 'A' had suffered no loss as his candidate won the election ( D)
Since no fundamental right of 'A' had been violated, therefore, as such, no compensation could be
granted

166) Principle: In a civil action for defamation, truth of the defamatory matter is an absolute defence.
However, the burden of proving truth is on the defendant; and he is liable if he does not successfully
discharge this burden.
Facts: ‘D’, who was the editor of a local weekly, published a series of articles mentioning that ‘P’, who
was a government servant, issued false certificates, accepted bribe, adopted corrupt and illegal means to
mint money and was a ‘mischief monger’. ‘P’ brought a civil action against ‘D’, who could not prove the
facts published by him.
Under the circumstances, which of the following derivations is CORRECT?
(A) ‘D’ would be liable, since he could not prove the facts published by him
(B) ‘D’ would not be liable, as such an action could curtail the right of expression and speech of press
(C) ‘D’ would not be liable, as media could publish anything ( D) None of the above
167) Principle: A gift comprising both existing and future property is void as to the latter.
Facts: ‘X’ has a house which is owned by him. He contracted to purchase a plot of land adjacent to the said
house, but the sale (of the plot of land) in his favour is yet to be completed. He makes a gift of both the
properties (house and land) to ‘Y’.
Under the afore-mentioned circumstances, which of the following derivations is CORRECT?
(A) Gift of both the properties is valid

(B) Gift of both the properties is void
(C) Gift of house is void, but the gift of the plot of land is valid
(D) Gift of house is valid, but the gift of the plot of land is void
168) Principle: Caveat emptor, i.e. ‘let the buyer beware’ stands for the practical skill and judgment of the
buyer in his choice of goods for purchase. It is the business of the buyer to judge for himself that what he
buys has its use and worth for him. Once bought, and if the buy is not up to his expectations, then he alone
is to blame and no one else.
Facts: For the purpose of making uniform for the employees, ‘A’ bought dark blue coloured cloth from
‘B’, but did not disclose to the seller (‘B’) the specific purpose of the said purchase. When uniforms were
prepared and used by the employees, the cloth was found unfit. However, the cloth was fit for a variety of
other purposes ( such as, making caps. boots and carriage lining. etc ).
Applying the afore-stated principle, which of the following derivations is CORRECT as regards remedy
available to ‘A’ in the given situation?
(A) ‘A’ (the buyer) would succeed in getting some remedy from ‘B’ ( the seller )
(B) ‘A’ (the buyer) would not succeed in getting any remedy from ‘B’ ( the seller )
(C) ‘A’ (the buyer) would succeed in getting refund from ‘B’ ( the seller )
(D) ‘A’ (the buyer) would succeed in getting a different variety of cloth from ‘B’ (the seller), but not the
refund

169) Principle: The transferor of goods cannot pass a better title than what he himself possesses.
Facts: ‘X’ sells a stolen bike to ‘Y’, ‘Y’ buys it in good faith.
As regards the title to bike, which of the following derivations is CORRECT?
(A) The real owner cannot get back the bike from ‘Y’
(B) ‘Y’ will get no title, as transferor’s (X’s) title was defective
(C) ‘Y’ will get good title, as he is a bona fide buyer
(D) ‘Y’ will get good title, as has not committed any wrong (stolen the bike)
170) Principle: Negligence is a breach of duty or a failure of one party to exercise the standard of care
required by law, resulting in damage to the party to whom the duty was owed. A plaintiff can take civil
action against the respondent, if the respondent’s negligence causes the plaintiff injury or loss of property.
Facts: ‘D’ went to a café and ordered and paid for a tin/can of soft drink. The tin was opaque, and, therefore,
the contents could not be seen from outside. She (‘D’) consumed some of the contents and then lifted the
tin to pour the remainder of the content into a tumbler. The remains of a snail in decomposed state dropped
out of the tin into the tumbler. ‘D’ later complained of a stomach pain and her doctor diagnosed her as
having gastroenteritis and being in a state of severe shock. She sued the manufacturer of the drink for
negligence.
Applying the afore-stated principle, which of the following derivations is CORRECT as regards liability
of the manufacturer in the given situation?
(A) The manufacturer is liable for negligence, as it owed at duty (to consumers) to take reasonable care to
ensure that its products are safe for consumption
(B) The manufacturer is not liable for negligence, as there is no direct contract between ‘D’ and the
manufacturer. No duty is owed by the manufacturer towards a particular consumer (‘D’)
(C) The manufacturer is not liable for negligence because it would otherwise become very difficult for the
manufacturers to do business
(D) The manufacturer could be made liable under criminal law, but not for tort of negligence
171) Principle: Master is liable for the wrongful acts committed by his servant; provided the acts are
committed during the course of employment. However, the master is not liable if the wrongful act
committed by his servant has no connection, whatsoever, with the servants contract of employment.
Facts: ‘D’ is a driver employed by ‘M’, who is the owner of a company. During the lunch time, ‘D’ goes
to a close by tea shop to have a cup of tea. There he (‘D’) picks up fight with the tea shop owner (‘T’),
which resulted in some damage to his shop. ‘T’ wants to sue ‘M’ for claiming compensation for the damage
caused by the fight.
(A) ‘M’ will be liable because ‘D’ is his servant

(B) Both ‘M’ and ‘D’ will be liable

(C) ‘M’ will not be liable because the wrongful act (picking up fight) was not committed in the course of
D's employment
(D) ‘M’ will be liable albeit the wrongful act (picking up fight) was not committed in the course of D’s
employment
172) Principle: The Constitution of India guarantees the ‘right to life’, which means ‘right to live with
human dignity’. The right to life under the Constitution, however, does not include the right to die.
Facts: ‘M’, who is 90, lives all alone as he has no family or children or grandchildren. He suffers from
physical and mental distress, as there is no one to look after him. He has little means to foot his medical
expenses. Under these circumstances, he approaches the court with a prayer that he should be granted the
right to die with dignity because he does not want to be a burden on the society. Further, as it is his life, he
has a right to put an end to it.
(A) The prayer can be granted, as suicide is not an offense in India

(B) The prayer can be granted. as the right to life under the Constitution includes the right to die (C) The
prayer can be granted, as a person cannot be forced to enjoy right to life to his detriment, disadvantage
and disliking
(D) The prayer cannot be granted, as the right to life under the Constitution does not include the right to
die
173) Principle: Trespass to land means direct interference with the possession of land without lawful
justification. Trespass could be committed either by a person himself entering the land of another person
or doing the same through some tangible object(s).
Facts: ‘A’ throws some stones upon his neighbour's (B's) premises.
(A) ‘A’ has committed trespass

(B) ‘A’ has not committed trespass, as he has not entered B’s premises
(C) ‘A’ has committed nuisance
174) Principle: Nuisance is an unlawful interference with a person’s use or enjoyment of land or some
right over or in connection with it. If the interference is ‘direct’, the wrong is trespass; whereas, if the
interference is ‘consequential’, it amounts to nuisance.
Facts: 'A' plants a tree on his land. However, he allows its branches to project over the land of ‘B’.
(A) ‘A’ has committed trespass

(B) ‘A’ has committed nuisance

(C) ‘A’ has not committed nuisance
(D) None of the above A

Principle:
175) interference with another’s goods in such a way as to deny the latter's title to the goods amounts to
conversion, and thus it is a civil wrong. It is an act intentionally done inconsistent with the owner's right,
though the doer may not know of, or intend to challenge, the property or possession of the true owner.
Facts: ‘R’ went to a cycle-stand to park his bicycle. Seeing the stand fully occupied, he removed a few
bicycles in order to rearrange a portion of the stand and make some space for his bicycle. He parked his
bicycle properly, and put back all the bicycles except the one belonging to ‘S’. In fact, ‘R’ was in a hurry,
and therefore, he could not put back S's bicycle. Somebody came on the way and took away S's bicycle.
The watchman of the stand did not take care of it assuming that the bicycle was not parked inside the stand.
‘S’ filed a suit against ‘R’ for conversion.
(A) ‘R’ could not be held liable for the negligence of the watchman
(B) ‘S’ would succeed because R’s act led to the stealing of his bicycle
(C) ‘S’ would not succeed because ‘R’ did not take away the bicycle himself (D) ‘S’ would not succeed
because R’s intention was not bad
176) Principle: Nothing is an offence which is done by a person who is bound by law to do it.
Facts: ‘A’. a police officer, without warrant, apprehends ‘Z’, who has committed murder.
(A) ‘A’ is guilty of the offence of wrongful confinement

(B) ‘A’ is not guilty of the offence of wrongful confinement
(C) ‘A’ may be guilty of the offence of wrongful restraint
(D) ‘A’ cannot apprehend ‘Z’ without a warrant issued by a court of law
177) Principle: When a criminal act is done by several persons in furtherance of the common intention of
all, each of such persons is liable for that act in the same manner as if it were done by him alone.
Facts: Roshan along with two of his friends, Tushar and Tarang proceeded to the house of Darshan in order
to avenge an insult made by the brother of Darshan. They opened fire on the members of Darshan's family.
It was found that the shots of Roshan did not hit anyone, but the shots of Tushar and Tarang succeeded in
killing Darshan.
(A) Roshan was not liable for the offence of murder of Darshan. as Roshan ெs shots did not hit Darshan (B)
Only Tushar and Tarang were liable for the offence of murder of Darshan, as their shots hit Darshan
(C) Roshan along with Tushar and Tarang was liable for the offence of murder of Darshan (D) Roshan was
liable to a lesser extent comparing to his friends for the offence of murder of Darshan. as Roshan’s shots
did not hit Darshan
178) Principle: No communication made in good faith is an offence by reason of any harm to the person
to whom it is made, if it is made for the benefit of that person.
Facts: ‘A’, a surgeon, in good faith, communicates to a patient his opinion that he cannot live. The patient
dies in consequence of the shock.

Principle:
(A) ‘A’ has committed the offence of causing death of his patient
(B) ‘A’ has not committed the offence of causing death of his patient
(C) ‘A’ has only partially committed the offence of causing death of his patient ( D) None of the above
179) Whoever, being legally bound to furnish information on any subject to any public servant, as such,
furnishes, as true, information on the subject which he knows or has reason to believe to be false, has
committed a punishable offence of furnishing false information.
Facts: Sawant, a landholder, knowing of the commission of a murder within the limits of his estate,
willfully misinforms the Magistrate of the district that the death has occurred by accident in consequence
of the bite of a snake.
(A) Sawant is not guilty of the offence of furnishing false information to the Magistrate
(B) Sawant is guilty of the offence of furnishing false information to the Magistrate
(C) Sawant is not legally bound to furnish true information to the Magistrate
(D) Sawant has the discretion to furnish true information to the Magistrate, as the murder was committed
within the limits of his estate
180) Principle: Whoever unlawfully or negligently does any act which is, and which he knows or has
reason to believe to be, likely to spread the infection of any disease dangerous to life, shall be guilty of a
negligent act likely to spread infection of disease dangerous to life.
Facts: ‘K’, a person, knowing that he is suffering from Cholera, travels by a train without informing the
railway officers of his condition.
(A) ‘K’ has committed an unlawful and negligent act, which is likely to spread the infection of Cholera
disease dangerous to the life of fellow-passengers
(B) Railway officers are guilty of an unlawful and negligent act, as ‘K’ who is suffering from
Cholera disease has travelled by the train
(C) ‘K’ has not committed an unlawful and negligent act, which is likely to spread the infection of Cholera
disease dangerous to the life of fellow-passengers
(D) Both ‘K’ and Railway officers are guilty of an unlawful and negligent act, which is likely to spread the
infection of Cholera disease dangerous to the life of fellow- passengers
181) Principle: Whoever drives any vehicle, or rides, on any public way in a manner so rash or negligent
as to endanger human life. or to be likely to cause hurt or injury to any other person, has committed an
offence, which shall be punished in accordance with the law.
Facts: ‘X’, a truck driver, driving his vehicle rashly and negligently at a high speed climbed the footpath
and hit ‘Y’, a pedestrian, from behind causing his death.
(A) ‘X’ is not guilty of rash and negligent driving

(B) ‘Y’ should have taken sufficient care on the footpath
(C) ‘X’ is guilty of rash and negligent driving
(D) ‘X’ is only in part guilty of rash and negligent driving

Principle:
182) Principle: Whoever causes death by doing an act with the intention of causing death, or with the
intention of causing such bodily injury as is likely to cause death, or with the knowledge that he is likely
by such act to cause death, commits the offence of culpable homicide.
Facts: ‘A’ knows ‘Z’ to be behind a bush. ‘B’ does not know it. ‘A’, intending to cause, or knowing it to
be likely to cause Z’s death, induces ‘B’ to fire at the bush. ‘B’ fires and kills ‘Z’.
(A) ‘B’ has committed the offence of culpable homicide
(B) ‘A’ has committed the offence of culpable homicide
(C) Both ‘A’ and ‘B’ have committed the offence of culpable homicide
(D) None of them has committed the offence of culpable homicide
183) Whoever, intending to take dishonestly any movable property out of the possession of any person
without that person’s consent, moves that property in order to such taking, is said to commit theft.
Facts: ‘Z’, going on a journey, entrusts his plate to the possession of ‘A’, the keeper of a warehouse, till
‘Z’ shall return. Then, ‘A’ carries the plate to a goldsmith and sells it.
(A) ‘A’ has committed theft

(B) ‘A’ has not committed theft
(C) ‘A’ lawfully sold the plate to the goldsmith ( D) None of the above is true
184) Principle: Whoever makes any false document or part of a document with intent to cause damage or
injury, to the public or to any person. or to support any claim or title, or to cause any person to part with
property, or to enter into any express or implied contract, or with intent to commit fraud or that fraud may
be committed, commits forgery.
Facts: ‘A’ without Z’s authority, affixes Z’s seal to a document purporting to be a conveyance of an estate
from to ‘A’, with the intention of selling the estate to ‘B’ and thereby of obtaining from ‘B’ the purchase-
money.
(A) ‘B’ has committed forgery

(B) ‘Z’ has committed forgery
(C) ‘A’ has committed forgery
(D) ‘A’ and ‘B’ have committed forgery
185) Principle: Whoever intentionally uses force to any person, without that person’s consent, in order to
the committing of any offence, or intending by the use of such force to cause, or knowing it to be likely
that by the use of such force he will cause injury, fear or annoyance to the person to whom the force is
used, is said to use criminal force to that other.
Facts: ‘Z’ is riding in a palanquin, ‘A’, intending to rob ‘Z’, seizes the pole and stops the palanquin. Here
‘A’ has caused cessation of motion to ‘Z’, and ‘A’ has done this by his own bodily power.
(A) ‘A’ has used criminal force to ‘Z’

(B) ‘A’ has no intention to use criminal force to ‘Z’
(C) ‘A’ has used force with the consent of ‘Z’

Principle:
(D) None of the above is correct
186) Principle: One of the essential conditions for a marriage between any two persons to be solemnized
under the Special Marriage Act. 1954 is that at the time of the marriage the male has completed the age of
twenty-one years and the female the age of eighteen years. If the said condition is not fulfilled such a
marriage is null and void.
Facts: ‘A’, a male aged twenty-two years, proposes to marry ‘B’, a female aged sixteen years, at Delhi in
the month of June 2014 under the Special Marriage Act, 1954.
(A) Marriage between ‘A’ and ‘B’ can be legally solemnized under the Special Marriage Act, 1954
(B) Marriage between ‘A’ and ‘B’ cannot be legally solemnized under the Special Marriage Act, 1954
(C) Marriage between ‘A’ and ‘B’ can remain valid for A under the Special Marriage Act, 1954 (D) None
of the above is correct

187) Principle: Under the Hindu Marriage Act, 1955 either the husband or the wife can move a petition
for a decree of divorce on the ground of desertion. The term ‘desertion’ means desertion of the petitioner
by the other party to the marriage for a continuous period of not less than two years immediately preceding
the presentation of the petition, without reasonable cause and without the consent or against the wish of
such party and includes the willful neglect of the petitioner by the other party to the marriage, and its
grammatical variations and cognate expressions shall be construed accordingly. It is also said that desertion
is withdrawal not from a place but from a state of things.
Facts: Rohan, a technocrat, went to US in January 201l for pursuing his higher studies for a period of three
years. In fact, Rohan went to US with the consent of his wife Basanti, who stayed at her parents’ home,
and with a promise of his return to India upon the completion of his studies. From US he has quite often
been in touch with his wife. Subsequently, Rohan has got a job there in US and he wishes to take his wife.
She refuses to go to US and. in the meanwhile, she files a petition for a decree of divorce on the ground of
desertion by her husband.
(A) Rohan's three year stay in US in the above context can amount to a ground of desertion for divorce. (B)
Rohanெs three year stay in US in the above context cannot amount to a ground of desertion for divorce.
(C) Rohan's continued stay after three years can amount to a ground of desertion for divorce. (D)
Basantiெs refusal can amount to a ground of desertion for divorce.
188) Principle: Under the Hindu Adoptions and Maintenance Act, I956, no person shall be capable of
being taken in adoption unless he or she is a Hindu, he or she not already been adopted, he or she has not
been married, unless there is a custom or usage applicable to the parties which permits persons who are
married being taken in adoption, and he or she has not completed the age of fifteen years, unless there is a
custom or usage applicable to the parties which permits persons who have completed the age of fifteen
years being take in adoption.
Facts: Vijay being natural father had given Tarun, a boy aged 10 years, in adoption to Manoj in March
2010 in accordance with the Hindu Adoptions and Maintenance Act, 1956. In May 2012 Manoj gave Tarun
in adoption to Sanjay. Subsequently in December 2013, Sanjay gave Tarun in adoption to Vijay.
(A) Adoption of Tarun by Sanjay is valid

(B) Adoption of Tarun by Vijay is valid
(C) Adoption of Tarun by Manoj is valid
(D) None of the above adoptions is valid
189) Principle: Under copyright law copyright subsists in original literary works also. A literary work need
not be of literary quality. Even so prosaic a work as an index of railway stations or a railway guide or a list
of stock exchange quotations qualifies as a literary work if sufficient work has been expended in compiling
it to give it a new and original character.
Facts: Michael works hard enough, walking down the streets, taking down the names of people who live
at houses and makes a street directory as a result of that labour.
(A) Michael’s exercise in making a street directory is sufficient to justify in making claim to copyright
in that work which is ultimately produced

(B) Michael’s exercise in making a street directory is not enough to justify in making claim to copyright
in that work
(C) A street directory cannot be enough to be considered as a literary work ( D) None of the above
statements is correct
190) Principle: Every person shall be liable to punishment under the Indian Penal Code and not otherwise
for every act or omission contrary to the provisions of the Code of which he shall be guilty within the
territory of India. In other words, the exercise of criminal jurisdiction depends upon the locality of the
offence committed, and not upon the nationality or locality of the offender.
Facts: ‘X’, a Pakistani citizen, while staying at Karachi, made false representations to ‘Y’, the complainant,
at Bombay through letters, telephone calls and telegrams and induced the complainant to part with money
amounting to over rupees five lakh to the agents of ‘X’ at Bombay, so that rice could be shipped from
Karachi to India as per agreement. But the rice was never supplied to the complainant.
(A) The offence of cheating under section 420 of the Code was committed by ‘X’ within India, even though
he was not physically present at the time and place of the crime
(B) The offence of cheating as per section 420 of the Code was not committed by ‘X’ within India, as he
was not physically present at the time and place of the crime
(C) Only the agents of 'X' had committed the offence of cheating under section 420 of the Code within
India, as they were physically present at the time and place of the crime
(D) ‘Y’ was also liable for the offence of cheating under section 420 of the Code within India, as he was
physically present at the time and place of the crime
191) Principle: When two or more persons agree to do, or cause to be done, (1) an illegal act, or (2) an act
which is not illegal by illegal means, through such an agreement such persons are said to have been engaged
in a criminal conspiracy to commit an offence. It is said that no consummation of the crime need be
achieved or even attempted.
Facts: ‘X’, ‘Y’ and ‘Z’ plan to kill ‘D’. They agree that only one among them, that is ‘Z’, will execute the
plan. In pursuance of it ‘Z’ buys a gun and loads it.
(A) Only ‘Z’ can be charged with criminal conspiracy to kill ‘D’
(B) All of them, i.e., ‘X’, ‘Y’ and ‘Z’, can be charged with criminal conspiracy to kill 'D' (C) 'X' and
'Y' cannot be charged with criminal conspiracy to kill 'D'
(D) None of them can be charged with criminal conspiracy to kill 'D'
192) Principle: 'Wrongful gain' is gain by unlawful means of property to which the person gaining is not
legally entitled. 'Wrongful loss' is the loss by unlawful means of property to which the person losing it is
legally entitled.
Facts: 'X' takes away Y's watch out of Y's possession, without Y's consent and with the intention of keeping
it.
(A) 'X' causes 'wrongful gain' to 'Y'

(B) 'Y' causes 'wrongful gain' to 'X'
(C) 'X' causes 'wrongful loss' to 'Y'

(D) 'Y' causes 'wrongful loss' to 'X'
193) Principle: Nothing is an offence by reason that it causes, or that it is intended to cause, or that it is
known to be likely to cause, any harm, if that harm is so slight that no person of ordinary sense and temper
would complain of such harm.
Facts: ‘X’ takes a plain sheet of paper from Y’s drawer without Y’s consent to write a letter to his friend.
(A) ‘X’ has committed an offence in the above context (B)

‘X’ has committed no offence in the above context (C) ‘Y’
can sue ‘X’ for an offence in the above context (D) None
of the above is correct in the above context
194) Principle: When an act which would otherwise be a certain offence, is not that offence, by reason of
the youth, the want of maturity of understanding, the unsoundness of mind or the intoxication of the person
doing that act, or by reason of any misconception on the part of that person, every person has the same
right of private defence against that act which he would have if the act were that offence.
Facts: ‘X’, under the influence of madness, attempts to kill ‘Y’.
(A) ‘Y’ has the right of private defence against ‘X’

(B) ‘Y’ does not have the right of private defence against ‘X’
(C) ‘Y’ has the right of private defence against ‘X’, only if ‘X’ is not under the influence of madness (D)
‘X’ has the right of private defence against ‘Y’
195) Principle: Where a person fraudulently or erroneously represents that he is authorized to transfer
certain immovable property and professes to transfer such property for consideration, such transfer shall,
at the option of the transferee, operate on any interest which the transferor may acquire in such property at
any time during which the contract of transfer subsists.
Facts: ‘A’, a Hindu who has separated from his father ‘B’, sells to ‘C’ three fields, X, Y and Z, representing
that ‘A’ is authorized to transfer the same. Of these fields Z does not belong to ‘A’, it having been retained
by ‘B’ on the partition; but on B's dying ‘A’ as successor obtains ‘Z’ and at that time ‘C’ had not cancelled
the contract of sale.
(A) ‘A’ can sell Z to a third party

(B) ‘A’ is not required to deliver Z to ‘C’
(C) ‘A’ is required to deliver Z to ‘C’
(D) None of the above statements is correct
196) Principle: Under the Transfer of Property Act, 1882 a property must be transferred by one living
person to another living person. The Act deals only with transfer of property between living persons. Facts:
‘X’ wants to transfer his property to the presiding deity in a temple situated within the estate of ‘A’.
(A) Transfer of property by ‘X’ will be valid

(B) Transfer of property by ‘X’ will be invalid

(C) Transfer of property by ‘X’ to the presiding deity will become a valid transfer to ‘A’ ( D) None of the
above is correct
197) Principle: Where there is transfer of ownership of one thing for the ownership of some other thing it
is called exchange; while transfer of ownership for consideration of money is called sale, whereas, without
consideration it becomes gift.
Facts: ‘A’ transfers his house worth ǭ50 Lakhs to ‘B’ for a shopping building worth the same amount, as
consideration, from ‘B’.
(A) The transaction is a gift

(B) The transaction is a sale
(C) The transaction is an exchange
(D) The transaction is a mortgage
198) Principle: One of the principles of natural justice is Nemo judex in causa sua, which means that no
one should be a judge in his own cause. In other words, no person can judge a case in which he has an
interest.
Facts: ‘X’, a member of the selection board for a government service, was also a candidate for selection
for the same service. ‘X’ did not take part in the deliberations of the board when his name was considered
and approved.
(A) Selection of ‘X’ is against the principle of natural justice.

(B) Selection of ‘X’ is not against the principle of natural justice.
(C) Non-selection of ‘X’ will be against the principles of natural justice.
(D) Non-participation of ‘X’ in the board deliberations will render his selection
199) Principle: Strike is a collective stoppage of work by workmen undertaken in order to bring pressure
upon those who depend on the sale or use of the products of work: whereas, lock-out is a weapon in the
hands of the employer, similar to that of strike in the armoury of workmen, used for compelling persons
employed by him to accept his terms or conditions of or affecting employment. While in closure there is
permanent closing down of a place of employment or part thereof, in lay-off an employer, who is willing
to employ, fails or refuses or is unable to provide employment for reasons beyond his control.
Facts: Workmen of a textile factory went on strike as per law, demanding the payment of bonus. Employer
of the factory refused to pay any extra allowances, including bonus, and besides he closed down the factory
till the strike was stopped.
(A) Act of closing down the factory by the employer amounted to strike
(B) Act of closing down the factory by the employer amounted to lay-off
(C) Act of closing down the factory by the employer amounted to lock-out (D) Act of closing down the
factory by the employer amounted to closure
200) Principle: Trade dispute means any dispute between employers and workmen or between workmen
and workmen, or between employers and employers which is connected with the employment or non-
employment, or the terms of employment or the conditions of labour, of any person. Disputes connected

with the non-employment must be understood to include a dispute connected with a dismissal, discharge,
removal or retrenchment of a workman.
Facts: ‘X’, an employee in a sugar factory, raised a dispute against ‘Y’, the employer, through trade union
regarding certain matters connected with his suspension from the employment.
(A) Matters connected with suspension can amount to a trade dispute

(B) Matters connected with suspension cannot amount to a trade dispute
(C) Only after dismissal, matters connected with suspension can amount to a trade dispute ( D) None of
the above is correct.

UG 2015
Notations :
Question Paper Name: Common Law Admission Test CLAT 2015 UNDER GRADUATE COURSES Actual
Subject Name:
Creation Date: 2015-04-28 11:07:20.0

Cut Off: 0
Duration: 120
Number of Questions: 113
Total Marks: 200.0
Group Number : 1
Group Id : 10
Group Maximum Duration : 0
Group Minimum Duration : 120
Revisit allowed for view? : No
Revisit allowed for edit? : No
Break time: 0
Group Marks: 200.0
Section Id : 38
Section Number : 1
Section type : Online
Mandatory or Optional: Mandatory
Number of Questions to be attempted: 10
Section Marks: 40.0
Sub-Section Number: 1
Sub-Section Id: 38
Question Shuffling Allowed : Yes
Question Id : 1701 Question Type : COMPREHENSION Sub Question Shuffling Allowed : Yes
Question Numbers : (1 to 3)
Sub questions
Question Number : 1 Question Id : 1702 Question Type : MCQ Option Shuffling : No

! ! "

# ! ! "

$ % & ' & ! ! " ( " " ) *
+ # , -
.
# , ! ! "

! ! "

, / ! ! "

0 $ % & ' & ! ! " ( " " ) *
+ -
.
! ! "

/ ! ! "

0 ! ! "

! ! "

# ! ! "

! ! "

, $ % & ' & ! ! " ( " " ) *
+ # -
.
! ! "

# / ! ! "

0 $ % & ' & ! ! " ( " " ) *
+ 0 -
.
! ! "

, ! ! "

! ! "

/ ! ! "

0 # ! ! "

$ % & ' & ! ! " ( " " ) *
+ -
.
, ! ! "

! ! "

/ $ % & ' & ! ! " ( " " ) *
+ # -
.
0 ! ! "

! ! "

# ! ! "

$ % & ' & ! ! " ( " " ) *
+ -
.
! ! "

, # ! ! "

! ! "

, $ % & ' & ! ! " ( " " ) *
+ / -
.
/ ! ! "

0 / ! ! "

0 ! ! "

# ! ! "

# ! ! "

# ! ! "

# # ! ! "

# # ! ! "

2 3 . 4 5 2 ! 6 ! " " 6 7 " 2

1
, # ! ! "

# , ! ! "

# $ % & ' & ! ! " ( " " ) *
+ / # -
.
/ # / ! ! "

0 # 0 ! ! "

# ! ! "

8 9 : ; < = > ? @ A B C
8 9 : ; < = > D E F G 9 H A I
8 9 : ; < = > ; J K 9 A L > M < > 9
> @ ; = H J = H L K ; < = > M A > @ ; = H J

N O O O N O O
D E F G 9 H = P Q E 9 R ; < = > R A S T
D E F G 9 H = P Q E 9 R ; < = > R ; = G 9 ; ; 9 F K ; 9 @ A S T
O
8 9 : ; < = > H U R A S T V T
N O
8 E G W 8 9 : ; < = > D E F G 9 H A X
8 E G W 8 9 : ; < = > ? @ A B C
Q E 9 R ; < = > 8 Y E P P M < > Z [ M M = \ 9 @ A ] 9 R
# ! ! "

# ! ! "

# ! ! "

# # # ! ! "

# ! ! "

# , , ! ! "

# ! ! "

# / / ! ! "

# 0 0 ! ! "

, ! ! "

, ! ! "

, ! ! "

, ! ! "

# , # ! ! "

, ! ! "

, , , ! ! "

, ! ! "

/ , / ! ! "

0 , 0 ! ! "

, ! ! "

, ! ! "

, ! ! "

, ! ! "

, # # ! ! "

, ! ! "

, , , ! ! "

, ! ! "

, / / ! ! "

, 0 0 ! ! "

/ ! ! "

/ ! ! "

/ ! ! "

/ ! ! "

# / # ! ! "

/ ! ! "

, / , ! ! "

/ ! ! "

/ / / ! ! "

0 / 0 ! ! "

/ 0 ! ! "

/ 0 ! ! "

/ 0 ! ! "

/ 0 ! ! "

/ # 0 # ! ! "

/ 0 ! ! "

/ , 0 , ! ! "

/ 0 ! ! "

/ / 0 / ! ! "

/ 0 0 0 ! ! "

0 / ! ! "

8 9 : ; < = > ? @ A ^ T
8 9 : ; < = > D E F G 9 H A B
8 9 : ; < = > ; J K 9 A L > M < > 9
> @ ; = H J = H L K ; < = > M A > @ ; = H J

N O O O N O O
D E F G 9 H = P Q E 9 R ; < = > R A X _
D E F G 9 H = P Q E 9 R ; < = > R ; = G 9 ; ; 9 F K ; 9 @ A X _
O
8 9 : ; < = > H U R A I T V T
N O
8 E G W 8 9 : ; < = > D E F G 9 H A X
8 E G W 8 9 : ; < = > ? @ A ^ T
Q E 9 R ; < = > 8 Y E P P M < > Z [ M M = \ 9 @ A ] 9 R
/ $ % & ' & ! ! " ( " " ) *
+ 0 0 -
.
0 / ! ! "

0 / ! ! "

0 / # ! ! "

0 # / ! ! "

0 / , ! ! "

0 , / ! ! "

0 / / ! ! "

0 / / 0 ! ! "

0 0 / ! ! "

/ ! ! "

/ ! ! "

/ ! ! "

/ # ! ! "

# / ! ! "

/ , ! ! "

, / ! ! "

/ / ! ! "

/ / 0 ! ! "

0 / ! ! "

/ ! ! "

8 9 : ; < = > ? @ A ^ X
8 9 : ; < = > D E F G 9 H A ^
8 9 : ; < = > ; J K 9 A L > M < > 9
> @ ; = H J = H L K ; < = > M A > @ ; = H J

N O O O N O O
D E F G 9 H = P Q E 9 R ; < = > R A I I
D E F G 9 H = P Q E 9 R ; < = > R ; = G 9 ; ; 9 F K ; 9 @ A I I
O
8 9 : ; < = > H U R A S T V T
N O
8 E G W 8 9 : ; < = > D E F G 9 H A X
8 E G W 8 9 : ; < = > ? @ A ^ X
Q E 9 R ; < = > 8 Y E P P M < > Z [ M M = \ 9 @ A ] 9 R
/ $ % & ' & ! ! " ( " " ) *
+ -
.
/ ! ! "

/ # ! ! "

/ ! ! "

# / , ! ! "

/ ! ! "

, / / ! ! "

/ 0 ! ! "

/ / ! ! "

0 / ! ! "

/ ! ! "

/ ! ! "

/ # ! ! "

/ ! ! "

# / , ! ! "

/ ! ! "

/ / $ % & ' & ! ! " ( " " ) *
+ , -
.
, / 0 ! ! "

/ # ! ! "

/ / # ! ! "

0 / # ! ! "

/ # ! ! "

/ # # ! ! "

/ # ! ! "

/ # , ! ! "

# / # ! ! "

/ # / ! ! "

/ # 0 $ % & ' & ! ! " ( " " ) *
+ , / -
.
, / ! ! "

/ ! ! "

/ / ! ! "

/ $ % & ' & ! ! " ( " " ) *
+ 0 # -
.
0 / # ! ! "

# / ! ! "

# / , ! ! "

# / ! ! "

# / / ! ! "

# # / 0 ! ! "

# / , ! ! "

# , / , ! ! "

# / , ! ! "

# / / , ! ! "

# 0 / , # ! ! "

/ , ! ! "

/ , , ! ! "

/ , ! ! "

/ , / ! ! "

# / , 0 ! ! "

/ ! ! "

, / ! ! "

/ ! ! "

/ / ! ! "

0 / # ! ! "

, / ! ! "

8 9 : ; < = > ? @ A ^ I
8 9 : ; < = > D E F G 9 H A S
8 9 : ; < = > ; J K 9 A L > M < > 9
> @ ; = H J = H L K ; < = > M A > @ ; = H J

N O O O N O O
D E F G 9 H = P Q E 9 R ; < = > R A X S
D E F G 9 H = P Q E 9 R ; < = > R ; = G 9 ; ; 9 F K ; 9 @ A X S
O
8 9 : ; < = > H U R A ^ T V T
N O
8 E G W 8 9 : ; < = > D E F G 9 H A X
8 E G W 8 9 : ; < = > ? @ A ^ I
Q E 9 R ; < = > 8 Y E P P M < > Z [ M M = \ 9 @ A ] 9 R
/ , $ % & ' & ! ! " ( " " ) *
+ , , / -
.
, / ! ! "

, / / ! ! "

, / 0 ! ! "

, # / / ! ! "

, / / ! ! "

, , / / ! ! "

, / / ! ! "

, / / / # ! ! "

/ / $ % & ' & ! ! " ( " " ) *
+ , 0 -
.
, 0 / / , ! ! "

/ / ! ! "

/ / / ! ! "

/ / 0 ! ! "

/ 0 ! ! "

/ 0 $ % & ' & ! ! " ( " " ) *
+ # / -
.
# / 0 ! ! "

/ 0 ! ! "

, / 0 # ! ! "

/ 0 ! ! "

/ / 0 , ! ! "

/ 0 $ % & ' & ! ! " ( " " ) *
+ 0 / -
.
0 / 0 / ! ! "

/ / 0 0 ! ! "

/ 0 ! ! "

0 $ % & ' & ! ! " ( " " ) *
+ / / # -
.
/ 0 ! ! "

2 3 . 4 5 2 ! 6 ! " " 6 7 " 2

1
/ 0 ! ! "

/ # 0 # ! ! "

0 $ % & ' & ! ! " ( " " ) *
+ / / , -
.
/ 0 , ! ! "

/ , 0 ! ! "

0 $ % & ' & ! ! " ( " " ) *
+ 0 0 -
.
0 0 ! ! "

0 0 # ! ! "

0 0 ! ! "

0 , $ % & ' & ! ! " ( " " ) *
+ 0 0 # -
.
0 0 ! ! "

0 # 0 / ! ! "

0 0 0 ! ! "

0 , 0 ! ! "

0 0 ! ! "

0 / 0 ! ! "

0 0 0 ! ! "

0 # ! ! "

CLAT 2016
UG
Notations :
Question Paper Name: CLAT May 2016 UG Actual Final

Subject Name:
Creation Date: 2016-05-08 19:09:20
Duration: 120
Total Marks: 200
Display Marks: Yes
Calculator: None
Magnifying Glass Required?: No
Ruler Required?: No
Eraser Required?: No
Scratch Pad Required?: No
Rough Sketch/Notepad Required?: No
Protractor Required?: No
Group Number : 1
Group Id : 21859513
Break time: 0
Mandatory Break time: No
Group Marks: 200
Section Id : 21859555
Section Number : 1
Section Marks: 40
Display Number Panel: Yes
Group All Questions: No
Sub-Section Id: 218595136

! " # ! ! $
% & ' ( '

( '
) *
+
( '

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
4
5
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
3

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
5

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

4
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

6 7 8 9 6 : ; < = > ? @ 7 A 8 : B C D
6 7 8 9 6 : ; < = > ? E F C D G H I J I G K L
M 7 : N < = > ? 6 O 7 P P Q = ? R S Q Q > T : F C U : N

! " # ! ! $
% & ' ( '

( '
) *
+
( '

3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

5
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
4

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

! " # ! ! $
% & ' ( '

( '
) 3 *
+
( '
3

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
5
4
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

6 7 8 9 6 : ; < = > ? @ 7 A 8 : B C K
6 7 8 9 6 : ; < = > ? E F C D G H I J I G K H

5
! " # ! ! $
% & ' ( '

( '
) *
+
( '

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
4
4
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

4
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

4
! " # ! ! $
% & ' ( '

( '
) *
+
( '

4 4
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
3
4
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
5
4
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

4 3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

6 7 8 9 6 : ; < = > ? @ 7 A 8 : B C V
6 7 8 9 6 : ; < = > ? E F C D G H I J I G K J

4 5
! " # ! ! $
% & ' ( '

( '
) 4 *
+
( '

4
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
4
4
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

6 7 8 9 6 : ; < = > ? @ 7 A 8 : B C I
6 7 8 9 6 : ; < = > ? E F C D G H I J I G V W

! " # ! ! $
% & ' ( '

( '
) 4 *
+
( '
4

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
4

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
4 4
4
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
4

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
4

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
4 3
3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
4 5
5
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
4

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
4

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

6 : ; < = > ? E F C D G H I J I I X
6 : ; < = > ? @ 7 A 8 : B C D
6 : ; < = > ? < Y Z : C [ ? Q = ? :
? F < > B Y > B [ Z < = > ? Q C ? F < > B Y

\ ] ] ] \ ] ]
@ 7 A 8 : B > P M 7 : N < = > ? N C G
@ 7 A 8 : B > P M 7 : N < = > ? N < > 8 : < < : A Z < : F C G

]
6 : ; < = > ? B ^ N C I W
\ ]
= N Z Q Y @ 7 A 8 : B ` ? : Q C U : N
_ ] ]
a B > 7 Z S Q Q M 7 : N < = > ? N C @ >

6 7 8 9 6 : ; < = > ? @ 7 A 8 : B C G
6 7 8 9 6 : ; < = > ? E F C D G H I J I G V G

! " # ! ! $
% & ' ( '

( '
) *
+
( '

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

4
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
4

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
3
5
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
5

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

3 4
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
4
3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

3 3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
3
3 5
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
5
3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

5
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
3
5
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
3
5
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
3
5 4
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
3 4
5
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
3
5
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
3
5 3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
3 3
5 5
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
3 5
5
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
3
5
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
3

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
5

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
5

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
5
4
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
5 4

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
5

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
5
3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
5 3
5
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
5 5

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
5

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
5

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

4
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
4

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
3
5
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
5

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

6 : ; < = > ? E F C D G H I J I I L
6 : ; < = > ? @ 7 A 8 : B C K
6 : ; < = > ? < Y Z : C [ ? Q = ? :
? F < > B Y > B [ Z < = > ? Q C ? F < > B Y

\ ] ] ] \ ] ]
@ 7 A 8 : B > P M 7 : N < = > ? N C G
@ 7 A 8 : B > P M 7 : N < = > ? N < > 8 : < < : A Z < : F C G

]
6 : ; < = > ? B ^ N C D W
\ ]
= N Z Q Y @ 7 A 8 : B ` ? : Q C U : N
_ ] ]
a B > 7 Z S Q Q M 7 : N < = > ? N C @ >
6 7 8 9 6 : ; < = > ? @ 7 A 8 : B C G
6 7 8 9 6 : ; < = > ? E F C D G H I J I G V D

! " # ! ! $
% & ' ( '

( '
) *
+
( '

4
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
4

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

5
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
3

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
5

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

4
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
4

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

5
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
3

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
5

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

6 : ; < = > ? E F C D G H I J I I H
6 : ; < = > ? @ 7 A 8 : B C V
6 : ; < = > ? < Y Z : C [ ? Q = ? :
? F < > B Y > B [ Z < = > ? Q C ? F < > B Y

\ ] ] ] \ ] ]
@ 7 A 8 : B > P M 7 : N < = > ? N C D

@ 7 A 8 : B > P M 7 : N < = > ? N < > 8 : < < : A Z < : F C D
]
6 : ; < = > ? B ^ N C I W
\ ]
= N Z Q Y @ 7 A 8 : B ` ? : Q C U : N
_ ] ]
a B > 7 Z S Q Q M 7 : N < = > ? N C @ >
6 7 8 9 6 : ; < = > ? @ 7 A 8 : B C G
6 7 8 9 6 : ; < = > ? E F C D G H I J I G V K

4
! " # ! ! $
% & ' ( '

( '
) *
+
( '

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
4
3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

5
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
3

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
5
4
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

4
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

4
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

4 4
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

4
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

4
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
4
4 3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

4 5
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

4
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
3
4
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
5

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
4
4
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
4

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
4

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
4 4
3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
4
5
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
4

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
4 3

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
4 5

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
4

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
4

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

4
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
4
3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

5
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

6 7 8 9 6 : ; < = > ? @ 7 A 8 : B C D
6 7 8 9 6 : ; < = > ? E F C D G H I J I G V V

! " # ! ! $
% & ' ( '

( '
) 3 3 *
+
( '
3
3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
5
3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

3 4
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

3 3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
4
3 5
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
3
5
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
5
5
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

5
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

5 4
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
3
5
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

6 : ; < = > ? E F C D G H I J I I J
6 : ; < = > ? @ 7 A 8 : B C I
6 : ; < = > ? < Y Z : C [ ? Q = ? :
? F < > B Y > B [ Z < = > ? Q C ? F < > B Y

\ ] ] ] \ ] ]
@ 7 A 8 : B > P M 7 : N < = > ? N C I
@ 7 A 8 : B > P M 7 : N < = > ? N < > 8 : < < : A Z < : F C I

]
6 : ; < = > ? B ^ N C V W
\ ]
= N Z Q Y @ 7 A 8 : B ` ? : Q C U : N
_ ] ]
a B > 7 Z S Q Q M 7 : N < = > ? N C @ >
6 7 8 9 6 : ; < = > ? @ 7 A 8 : B C G
6 7 8 9 6 : ; < = > ? E F C D G H I J I G V I

5
! " # ! ! $
% & ' ( '

( '
) 3 3 4 *
+
( '
3
5 3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
3
5 5
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
3 4
5
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

6 7 8 9 6 : ; < = > ? @ 7 A 8 : B C D
6 7 8 9 6 : ; < = > ? E F C D G H I J I G V X

5
! " # ! ! $
% & ' ( '

( '
) 3 3 3 *
+
( '
3

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
3

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
3 3

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

6 7 8 9 6 : ; < = > ? @ 7 A 8 : B C K
6 7 8 9 6 : ; < = > ? E F C D G H I J I G V L

4
! " # ! ! $
% & ' ( '

( '
) 3 5 3 *
+
( '
3 5

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
3

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

6 7 8 9 6 : ; < = > ? @ 7 A 8 : B C V
6 7 8 9 6 : ; < = > ? E F C D G H I J I G V H

3
! " # ! ! $
% & ' ( '

( '
) 3 5 *
+
( '
3
5
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
5

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

6 7 8 9 6 : ; < = > ? @ 7 A 8 : B C I
6 7 8 9 6 : ; < = > ? E F C D G H I J I G V J

! " # ! ! $
% & ' ( '

( '
) 5 *
+
( '
5

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
5

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
5 4

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
5
4
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
5

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
5 3

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
5 5
3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
5
5
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
5

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

b ' + c 0 ' - 0 + d - $ ' 2 c + " ' ' - ! ! 0 - - 2
( '

! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
4
3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

3 4
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
3
3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
5
3 3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

3 5
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
4
3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

3 4
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
3
3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '
5
3 3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

3 5
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

( '

3
! "
% , ! - ( '
%
" ! .
' -
/ ' 0 - !
' ' 0
1 ' "
2

Notations :
Question Paper Name: CLAT 2017 UG

Subject Name:
Creation Date: 2017-05-14 17:52:36
Duration: 120
Total Marks: 200
Display Marks: Yes
Calculator: None
Magnifying Glass Required?: No
Ruler Required?: No
Eraser Required?: No
Scratch Pad Required?: No
Rough Sketch/Notepad Required?: No
Protractor Required?: No
Group Number : 1
Group Id : 46113914
Break time: 0
Mandatory Break time: No
Group Marks: 200
Section Id : 46113962
Section Number : 1
Section Marks: 40
Display Number Panel: Yes
Group All Questions: No
Sub-Section Id: 461139183

! " # ! ! $
% & ' ( '

( '
) * +
,
( '

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

4
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
4

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
5
*
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
*

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

6 7 8 9 6 : ; < = > ? @ 7 A 8 : B C D
6 7 8 9 6 : ; < = > ? E F C G H I I J K I L G

! " # ! ! $
% & ' ( '

( '
) 4 +
,
( '

4
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
4

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

6 7 8 9 6 : ; < = > ? @ 7 A 8 : B C J
6 7 8 9 6 : ; < = > ? E F C G H I I J K I L V

5 * *
! " # ! ! $
% & ' ( '

( '
) * +
,
( '

5 *
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
5
5 *
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5 *
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5 *
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
*
5 * 4
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

6 7 8 9 6 : ; < = > ? @ 7 A 8 : B C G
6 7 8 9 6 : ; < = > ? E F C G H I I J K I L H

5 *
! " # ! ! $
% & ' ( '

( '
) +
,
( '

5 * 5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5 *
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5 *
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5 *
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

6 7 8 9 6 : ; < = > ? @ 7 A 8 : B C V
6 7 8 9 6 : ; < = > ? E F C G H I I J K I L W

5
! " # ! ! $
% & ' ( '

( '
) 4 +
,
( '
4
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
5
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5 4
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

6 7 8 9 6 : ; < = > ? @ 7 A 8 : B C H
6 7 8 9 6 : ; < = > ? E F C G H I I J K I L L

5
! " # ! ! $
% & ' ( '

( '
) * +
,
( '

5 5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
*
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

6 7 8 9 6 : ; < = > ? @ 7 A 8 : B C W
6 7 8 9 6 : ; < = > ? E F C G H I I J K I L K

5
! " # ! ! $
% & ' ( '

( '
) * +
,
( '

5 *
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
4
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5 4
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
5
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5 5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
*
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

6 : ; < = > ? E F C G H I I J K H J
6 : ; < = > ? @ 7 A 8 : B C D
6 : ; < = > ? < X Y : C Z ? Q = ? :
? F < > B X > B Z Y < = > ? Q C ? F < > B X

[ \ \ \ [ \ \
@ 7 A 8 : B > P M 7 : N < = > ? N C I
@ 7 A 8 : B > P M 7 : N < = > ? N < > 8 : < < : A Y < : F C I

\
6 : ; < = > ? B ] N C V ^
[ \
= N Y Q X @ 7 A 8 : B ` ? : Q C U : N
_ \ \
a B > 7 Y S Q Q M 7 : N < = > ? N C @ >
6 7 8 9 6 : ; < = > ? @ 7 A 8 : B C I
6 7 8 9 6 : ; < = > ? E F C G H I I J K I K ^

5 *
! " # ! ! $
% & ' ( '

( '
) * +
,
( '

5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
4
5 4
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
5
5 5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
4 *
5 *
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
4
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
4
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
4
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
4
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
4 4
5 4
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
4
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
4 5
5 5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
4
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
4
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
*
5 4 *
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5 4
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5 4
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5 4
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5 4
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
4
5 4 4
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5 4
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
5
5 4 5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5 4
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5 4
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
5 *
5 *
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
5
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
5
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
5
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
5
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
5 4
5 4
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
5
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
5 5
5 5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
5
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
5
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
*
5 5 *
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5 5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5 5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5 5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5 5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
4
5 5 4
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5 5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
5
5 5 5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5 5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5 5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
*
5 *
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

6 : ; < = > ? E F C G H I I J K H G
6 : ; < = > ? @ 7 A 8 : B C J
6 : ; < = > ? < X Y : C Z ? Q = ? :
? F < > B X > B Z Y < = > ? Q C ? F < > B X

[ \ \ \ [ \ \
@ 7 A 8 : B > P M 7 : N < = > ? N C I
@ 7 A 8 : B > P M 7 : N < = > ? N < > 8 : < < : A Y < : F C I

\
6 : ; < = > ? B ] N C D ^
[ \
= N Y Q X @ 7 A 8 : B ` ? : Q C U : N
_ \ \
a B > 7 Y S Q Q M 7 : N < = > ? N C @ >
6 7 8 9 6 : ; < = > ? @ 7 A 8 : B C I
6 7 8 9 6 : ; < = > ? E F C G H I I J K I K I

5
! " # ! ! $
% & ' ( '

( '
) * +
,
( '

5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5 4
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
4
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5 5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
5
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5 *
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
* *
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
*
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
*
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
*
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
*
5 4
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
* 4
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
*
5 5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
* 5
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
*
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
*
* *
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
*
*
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

6 : ; < = > ? E F C G H I I J K H V
6 : ; < = > ? @ 7 A 8 : B C G
6 : ; < = > ? < X Y : C Z ? Q = ? :
? F < > B X > B Z Y < = > ? Q C ? F < > B X

[ \ \ \ [ \ \
@ 7 A 8 : B > P M 7 : N < = > ? N C D

@ 7 A 8 : B > P M 7 : N < = > ? N < > 8 : < < : A Y < : F C D
\
6 : ; < = > ? B ] N C V ^
[ \
= N Y Q X @ 7 A 8 : B ` ? : Q C U : N
_ \ \
a B > 7 Y S Q Q M 7 : N < = > ? N C @ >
6 7 8 9 6 : ; < = > ? @ 7 A 8 : B C I
6 7 8 9 6 : ; < = > ? E F C G H I I J K I K D

*
! " # ! ! $
% & ' ( '

( '
) 4 +
,
( '

*
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

*
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

* 4
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

*
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
4
* 5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

*
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
5
*
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

*
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
*

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

4
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
4
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
5

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

*
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
*

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

4
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
4
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
5

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

*
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
*

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

4
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
4
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

6 7 8 9 6 : ; < = > ? @ 7 A 8 : B C D
6 7 8 9 6 : ; < = > ? E F C G H I I J K I K J

! " # ! ! $
% & ' ( '

( '
) * +
,
( '

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
5
*
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
4 *

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
4

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
4
4
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
4

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
4
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
4 4

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
4

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
4 5
4 *
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
4
4
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
4
4
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
*
4
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

6 : ; < = > ? E F C G H I I J K H H
6 : ; < = > ? @ 7 A 8 : B C V
6 : ; < = > ? < X Y : C Z ? Q = ? :
? F < > B X > B Z Y < = > ? Q C ? F < > B X

[ \ \ \ [ \ \
@ 7 A 8 : B > P M 7 : N < = > ? N C V
@ 7 A 8 : B > P M 7 : N < = > ? N < > 8 : < < : A Y < : F C V

\
6 : ; < = > ? B ] N C G ^
[ \
= N Y Q X @ 7 A 8 : B ` ? : Q C U : N
_ \ \
a B > 7 Y S Q Q M 7 : N < = > ? N C @ >
6 7 8 9 6 : ; < = > ? @ 7 A 8 : B C I
6 7 8 9 6 : ; < = > ? E F C G H I I J K I K G

4
! " # ! ! $
% & ' ( '

( '
) +
,
( '

4 4
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

4
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

4 5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

6 7 8 9 6 : ; < = > ? @ 7 A 8 : B C D
6 7 8 9 6 : ; < = > ? E F C G H I I J K I K V

4
! " # ! ! $
% & ' ( '

( '
) +
,
( '

4
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
4
*
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

6 7 8 9 6 : ; < = > ? @ 7 A 8 : B C J
6 7 8 9 6 : ; < = > ? E F C G H I I J K I K H

! " # ! ! $
% & ' ( '

( '
) 5 +
,
( '
5

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

6 7 8 9 6 : ; < = > ? @ 7 A 8 : B C G
6 7 8 9 6 : ; < = > ? E F C G H I I J K I K W

4
! " # ! ! $
% & ' ( '

( '
) 5 * +
,
( '

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
5 *
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

6 7 8 9 6 : ; < = > ? @ 7 A 8 : B C V
6 7 8 9 6 : ; < = > ? E F C G H I I J K I K L

! " # ! ! $
% & ' ( '

( '
) 5 * * +
,
( '
5

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
5
5 *
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
5
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
5
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
5 4
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
5
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
5 5
5 4
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
5
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
5
5 5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
*
5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

*
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
4

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
5
4
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
*

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

*
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
4

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
5
4
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '

5
! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

( '
* *

! "
% - ! . ( '
%
" ! /
' .
0 ' 1 . !
' ' 1
2 ' "
* 3 4

CLAT 2018
English Paper 1
Directions: In the paragraph below there are five sentences. In each sentence there are pairs of
highlighted words (A, B). Select the most appropriate words to form correct sentences. Then from
the options given select the correct option.
Q1. Internationally high rise walls serve as street A) paintings B) canvasses. In Delhi and Gurgaon
artists have A) earmarked B) earmark a district and after civic authority A) compliance, B)
grant transformed it into a throbbing art district. A walk through the A) instalment B)
installations for public interaction is A) instituted B) envisaged. It is hoped that this will
discourage defiling city‟s public places.
The correct sequence should be:
a) ABABB
b) BABAB
c) BAABB
d) ABABA
Q2. Pie charts are another extremely effective A) visual B) graph presentation of data. They show
what proportions make up a whole. Each segment should be A) cleared B) differentiated by
shading, cross –hatching or colour and should be A) labelled B) articulated horizontally. A)
Initially B) Conventionally, the largest slice begins at the 12 o‟ clock position then slices are
sequenced clockwise in A) descending B) clarified positions.
a) ABABA
b) BBABA
c) BABBA
d) BAABA
Q3. One of the predictable difficulties you can expect to A) encounter B) counter when you go to a
different country to study or work is language. But difficulties may also result from A) culture B)
cultural differences, which are often less A) conscious B) obvious at first and can be unexpected.
A Dutch academic was one of the first persons to propose an A) influential B) dire theory of
cultural A) diversity B) division.
a) ABABA
b) ABBAA
c) AABBA
d) ABABB
Directions: Identify the incorrect sentence/sentences.
Q4. A) It is important to monitor the groups.
B) Check that the instructions are clear ,and tell the students to begin.
C) Inefficient bus service are a hazard.
D) Traffic in the city has reached unsustainable levels.
Code
a) A
b) B
c) C
d) D
Q5. A) The college has organized a science fare
B) This is to notify that a leather wallet has been lost
C) Shortly blood donation will begin a camp
D) The agenda of the meeting is available on the website.
Code
a) B
b) C
c) D
d) A
Q6. A) It is vastly reading is significant

B) Reading for pleasure is linked to parental support at an early age.
C) We can read intensively and extensively.

D) Basic literacy among the prison population is insignificant.
a) C
b) D
c) B
d) A
Case Question with 6 Questions
Directions: Fill up the blanks numbered (a) (b) (c) (d) (e) (f) in the passage given below with the
most appropriate word from the options given for each blank
The main objective of art and (a) living is to develop (b) sensibilities and skills of healthful living besides
providing a (c) ground for love of labour, (d) social attitudes and moral values so as to enable the child to
be (e) to the ideas of others with humility and sincerity in thought, word and deed. Love for mankind
and helping the needy would (f) at this stage and its culmination would be in terms of attainment of
selfless service.
Q7. „a‟ is:
a) profitable
b) promising
c) productive
d) praise
Q8. „b‟ is:
a) nature
b) healthy
c) aesthetic
d) genuine
Q9. „c‟ is:
a) nurturing
b) fruitful
c) attractive
d) interesting
Q10. „d‟ is:
a) clear
b) positive
c) growing
d) negative
Q11. „e‟ is:
a) welcome
b) clear
c) receptive
d) illegal
Q12. „f‟ is:
a) disappear
b) reveal
c) link
d) germinate
Direction: Four alternative summaries are given in the text: Choose the option that best captures
the essence of the text.
Q13. Develop Critical Thinking

The way we see the world and relate to others is intrinsically connected to our own set of values
that govern the way we decide to live. However, the influence of fashion, consumerism, pop
culture, broken homes, social unrest, and the media is all-pervasive. For many people, teachers
and students alike, this influence goes unquestioned. Critical thinking, if successfully taught at
this level, becomes the antidote for individual and social illiteracy. For the authors, critical
thinking should constitute an indivisible part of the overall educational process. Facione (1995)
comments: „Critical thinking lies at the root of civilisation. It is a cornerstone in the journey
humankind is taking from beastly savagery to global sensitivity‟.
Supporting the development of these skills involves reflective teaching and learning, which is
highly complex and which some students may find difficult, or interpret as weakness on the part
of the teacher. But in the long run, with patience on the part of the teacher, it will develop
students who can view old or new material, from a variety of sources, through new eyes, using
their skills to define their own stance and express it, often better in their second language, with
an open-minded confidence.
a) The world view of the human being today is influenced by a lot of things. Critical
thinking cannot be taught as it involves reflective teaching and could be
misunderstood.
b) Critical thinking must be part of an individual‟s education but it is a difficult concept
because it very often reflects a teacher as a dominating individual
c) Critical thinking is an important aspect of an individual’s literacy level and his

social knowhow. It is part of civilization and eventually leads to global sensitivity.
Students can look at information in a variety of ways.
d) Reflective teaching is another aspect of initial thinking and it could lead to individual
and social illiteracy.
Direction: Four alternative summaries are given in the text: Choose the option that best captures
the essence of the text.
Q14. The construct of democracy rests on informed choice and governance on informed policy. Answers
to critical questions are stranded in the arena of claims and counter claims. Measures of progress
are simply not known or available . The debate to job creation is a mystery of sorts. The public are
not aware that the Center and States spend crores on education, health and social services. Take
education. Barely a few of ClassV students can read a Class II text, the poor are switching to
private schools and over 33% of million-plus schools do not maintain a feasible pupil teacher ratio.
A) Being informed is an important aspect of any democracy. This information is not available
especially in the area of education, health and social services.
B) Answers are often given but they need to be deciphered accurately. Job clarity is available but
sometimes it is a mystery. There is confusion about information.
C) Health and social services is clearly communicated but education remains an area of ignorance.
Claims and counter claims create even more confusion.
D) Crores are spent on many areas of growth but there is no accountability for information. Parents
are switching to private schools as the information on education is available there.
Directions: The word given in each of the sentences is used contextually. Pick the word from the
alternatives given that is most inappropriate in the given context.
Q15. VENERATE : We venerate aged priests and martyrs.
a) respect
b) revere
c) spurn
d) honor
Q16. PRUDENCE: Prudence and sacrifice help us in meeting the future.
a) caution
b) reckless
c) foresight
d) judgement
Q17. OSTENTATION : Ostentation in wealth and living styles can sometimes turn vulgar.
a) pageantry
b) display
c) modesty
d) flourish
Q18. DOCTRINE :A doctrine is often refined by reasoning.
a) offense
b) dogma
c) precept
d) principle
Q19. BENEVOLENCE : Every religion believes in the concept of benevolence.
a) generosity
b) malignity
c) liberality
d) benignity
Case Question with 2 questions
Direction: Answer the Question, based on the following information. Indicate which of the
statements given with that particular question, is consistent with the information given in the
passage below.
A Holistic Viewpoint
It is now recognised by modern science that the universe at the subatomic level does not have solid
material objects, but consists of only wavelike patterns which represent probabilities of interconnections
between other interconnections, all of which together constitute an inseparable web of inter-relationships
constituting the entire universe. Fritj of Capra therefore, views the universe not as “an assemblage of
independent parts” but as “a dynamic web of inter-related events” in which each part of the web
determines the structure of the whole. Geoffrey Chew views such inter-penetrating and interdependent
relationships in the universe in terms of a “bootstrap” theory which implies that all forces in the universe
are inseparably linked together, every part affects every other part, and the whole world is held together
so to say, by bootstraps. David Bohm refers to a holographic concept which implies not only that every
part is connected with every other part within the whole but also that, in a sense, each part contains the
whole. This, according to David Bohm, recognises the “Undivided wholeness” of the entire universe
instead of the classical idea of analysability of the world into separately and independently existent parts.
Q20. Choose the appropriate option:
a) there are many solid material objects in the universe
b) the entire universe has a web of inter-relationships
c) the universe comprises of a number of independent parts
d) these independent parts determine the structure of the web
Q21. Choose the appropriate option:
a) the holographic theory speaks of the exclusiveness of each part.
b) the world can be analysed into separate independent parts.
c) the classical idea recognizes the concept of wholeness.
d) the boot strap theory speaks of interdependent relationships
Direction: In the following sentence a part of the sentence is underlined. Beneath each sentence four
different ways of paraphrasing the underlined part are indicated. Choose the best alternative
among the four options.
Q22. The police searched everywhere but they drew a blank.
a) upset
b) did not find any information

c) came to a dead end (changed as: came to an end)
d) drew a line
Q23. She was accused of being close -minded and intolerant.
a) did not agree

b) kept to herself
c) not open to new ideas

d) unwilling to discuss
Q24. Rehman likes to have a finger in every pie.
a) likes cooking
b) wants to do everything
c) interferes in all matters (changed as: object to everything)
d) cannot take decisions.
Directions: In the question below, a related phrase is followed by a group of words. Select the group
of words that best expresses a relationship similar to the one expressed in the original phrase.
Q25. At one‟s wits end
a) cannot say anything funny
b) not able to think logically
c) not able to work
d) clarity of thought
Q26. Gift of the gab
a) clever at work
b) flatter someone
c) promise blatantly
d) fluent at speaking
Q27. Die in harness
a) Die while riding
b) die at the height of one’s success

c) die with help
d) die when the work has been completed
Direction: Read the passage given below. Choose the best option for the question.
IOT has had an impact across all fields, be it industries, government, small or large businesses
and even for Personal Consumption.
What is IOT (Internet of things) you might ask. It‟s been a growing topic of conversation for
some time now. Put in the simplest term it means anything that has an on and off button and is
connected to the internet for receiving, analyzing, storing or sending data. This could mean
anything, from the watch that you wear to airplanes that can be controlled from a remote
location. According to the analyst firm Gartner, by the year 2020 we‟ll have over 26 billion
connected devices. That could mean people to people, people connected to things and things
connected to things. The new rule of the future is going to be “Anything that can be connected
will be connected”. Take for example that when you set an alarm to wake up and that alarm goes
off it not only wakes you up but also brews your coffee, sets the right temperature of water for
your bath, puts on the television to bring you the latest updates from around the globe and all this
before you even put a foot out of your bed. This is all done by simply getting the network of
interconnected things/devices that have embedded sensors, network connectivity, software and
necessary electronics that collect and exchange data.
To show how far we have come with technology and connectivity, we have smart watches such
as Fitbit, Garmin to name a few that have changed the way we look at time. We have one device
that not only tells us the time but also tracks the number of steps, calories and our heart rate. This
watch is actually connected to our phone so with just one turn of the wrist one can tell who is
calling or what messages have been received without having to dig through pockets or handbags.
IOT is making its presence felt in health care as well. Doctors can now remotely monitor and
communicate with their patients and health care providers can benefit from this. Whether data
comes from foetal monitors, electrocardiograms, temperature monitors or blood glucose levels,
tracking this information is vital for some patients. Many of this requires follow up interaction
with healthcare professionals. With smarter devices that deliver more valuable data it can reduce
the need for direct patient- physician interaction.
Take for instance in the sporting field, minute chips are being attached to balls and bats which
will transmit information of how fast the ball is travelling and a batsman‟s moves, the time, the
angles, the pressure on the bat at different positions, data of the muscle stretch if he‟s hit a six so
on and so forth. Formula one cars are also being fitted with these sensors which relays
information on the minute moves being made by the driver. Chips are also being put into
wearable devices of sportsmen to detect sub-optimal action of any body parts to show signs of
stress or strain which will help in the early detection of injuries and take preventive measures.
IOT has had an impact across all fields, be it industries, government, small or large business and
even for personal consumption. IBM, Google, Intel, Microsoft and Cisco are some of the top
players in the IOT spectrum.
With billions of devices connected security becomes a big issue. How can people make sure that
their data is safe and secure? This is one of the major concerns in the IOT that becomes a hot
topic. Another issue is with all these billions of devices sharing data companies will be faced
with the problem of how to store, track, analyse and make vast sense of the information being
generated. Companies are monitoring the network segment to identify anomalous traffic and to
take action if necessary.
Now that we have a fair understanding of IOT let‟s see what impact it‟s had on the education
sector. The only constant in our lives is change and learning. From the get go we learn, be it to
the walk, talk or run. We adapt to the changing times and constantly learn from it. Education or
learning as we know it in the broader sense is the most important of all and the one that decides
which way we handle those changes to impact us and the world.
Today‟s world is fast paced and to keep up with this we need an infusion of speed with learning.
From the classroom assignments, lectures, blackboards and chalk we have come a long way to
what is now known as e-learning (electronic learning) or m-learning (mobile learning). With the
GenNext it is imperative to provide the right kind of education.
The rise of technology and IOT allows schools to improve the safety of their campuses, keep
track of resources and enhance access to information. It ensures data quality being the top
priority but also facilitates development of content allowing teachers to use this technology to
create smart lesson plans and ensuring the reach of this content to any corner of the world.
Q28. How is IOT a concept of connecting?

a) It is the internet in a different form.
b) It is internet but connected to anything.

c) It is an analysing machine.
d) It is a data collection term.
Q29. It is said that we look at time differently now, why?
a) It is connected to different devices.

b) It is in a different format.
c) It is connected to the aeroplane.
d) It connects people.
Q30. IOT will help in simplifying patient - physician interaction because:
a) It helps reduce data.

b) Doctors can remotely connect to patients.
c) It improves connectivity.
d) It is a simple process.
Q31. How will IOT work in the sporting field?

a) Through sport fields with chips.
b) Through special machine.
c) Through minute wearable chips which are connected.

d) Through special moves by the sportsmen.
Q32. Preventive measure is imperative because:

a) It can detect anything.
b) It identifies treatment needed.
c) It keeps them in touch.
d) It helps to identify stress and strain.

Q33. One of the major concerns of IOT is:
a) Security and privacy, data loss and tracking data.

b) Only security and privacy.
c) Only data loss.
d) Only tracking data.

Q34. Technology and IOT has benefited education considerably because it has
a) Helped in improving the lesson.
b) Helped keep track of all resources.

c) Helped teachers to track.
d) Helped with keeping up with the change in learning.

Q35. Teachers can use this data:
a) Only to teach with more resources

b) Only to create a smart classroom
c) Only to reach out to the world
d) To teach with more resources, create a smart classroom and reach out to the
world.
Q36. Select a title that is most suitable for the passage
a) IOT curse or boon
b) IOT and our life tomorrow

c) IOT is changing the way we learn
d) IOT is all pervading
Q37. To conclude, IOT has an impact on:
a) Education, sports, medicine and our daily lives

b) Education and sports only
c) Education only
d) Education and medicine only.
Direction: Choose the option closest to the Capitalized word

Q38. ANNIHILATE
a) devastate
b) delay
c) investigate
d) retaliate

Q39. FACILITATE
a) lend
b) share
c) support
d) serve

Q40. CAMPAIGN
a) lobby
b) run
c) agree
d) work
2. GK & CA - Set 1 (Qs 41 – 90)

1. Who wrote the memoir book “My Brief History”?
A. r G. Madhavan Nair
B. Stephen Hawking
C. Angeline Merkel
D. Rosalind Franklin
2. What is the Motto of the Commonwealth Games 2018?
A. People, Place, Passion

B. Share the Dream
C. Come out and play
D. United by the moment
3. The 2024 Summer Olympics will be held in Paris, France for a third time. How many years
before that, did the city host the Summer Olympics for the second time?
A. 100 years
B. 96 years
C. 92 years
D. 88 years
4. Who won the Men’s Singles title in Australian Open 2018?
A. Dylan Alcott
B. R. Nadal
C. Roger Federer
D. Marin Cilic
5. In which election was the Electronic Voting Machines tried out on an experimental basis in
India?
A. The 1982 Kerala Legislative Assembly Elections.

B. The Karnataka State for the 1984, Legislative Assembly Elections.
C. The U.P State for the 1989, Lok Sabha Elections.
D. The 1987, Delhi Corporation Election in Karol Bagh constituency.
6. Recently a star, Icarus was seen by NASA’s Hubble Space Telescope What was the
approximate time taken by Icarus’ light to reach the Earth?
A. Nine billion years

B. Ten million years
C. Seven trillion years
D. One hundred years
7. Who won the first Gold Medal for India at the Commonwealth Games 2018?
A. Punam Yadav
B. Mirabai Chanu
C. Jitu Rai
D. Sanjita Chanu
8. Who is the first Indian to hold the post of Deputy Director General for Programmes at the
World Health Organisation?
A. Rasha Omar
B. Vijayalakshmi Pandit
C. Soumya Swaminathan
D. Kiran Bedi
9. Who is the first female fighter pilot of India?
A. Punit Arora
B. Avani Chaturvedi
C. Mitali Madhumita
D. Priya Jhingan
10. The Reserve Bank of India issued the 100 rupee coin to mark the birth centenary of which
Carnatic Music Legend?
A. Dr. Balamurali Krishna

B. Dr. M.S. Subbulakshmi
C. Muthuswami Deekshithar
D. Chembai Vaidynatha Bhagavathar
11. Which type of mango from Andhra Pradesh received a Geographical Indication (GI) Tag in
2017?
A. Alphonso
B. Banganapalle
C. Totapuri
D. Himsagar
12. The International Day of the Girl Child is observed by the UN on

A. March 8
B. August 12
C. October 16
D. October 11
13. Where is the temple of Angkor Wat located?
A. Singapore
B. Cambodia
C. Thailand
D. Indonesia
14. Which one of the following States lifted the Santosh Trophy Football title 2018?
(A) Kerala
(B) Punjab
(C) Karnataka
(D) Uttar Pradesh
15. IRDA stands for

A. Insurance Regulatory and Development Authority
B. International Resources Development Agency
C. Indian Roads Development Authority
D. Indian Rural Development Authority
16. The first Defence Minister of India was

A. K.M. Cariappa
B. V.K. Krishna Menon
C. Baldev Singh
D. Kailash Nath Katju
17. Who is the legendary figure who won both a Nobel Prize and an Oscar?
A. Satyajit Ray
B. William Goldman
C. Gabriel Garcia Marquez
D. George Bernard Shaw
18. The discipline that deals with map making is known as
A. Cryptography
B. Carpology
C. Cartography
D. Lithography
19. The prize established, based on a donation from the Sveriges Riksbankin memory of Alfred
Nobel, is the
A. Prize in Medicine
B. Prize in Economic Sciences
C. Peace Prize
D. Prize in Literature
20. What is the significance of May 13, 1952 with regard to Indian polity?
A. First sitting of the Lok Sabha

B. First sitting of the Rajya Sabha
C. First sitting of the Supreme Court of India
D. Formation of the Election Commission of India
21. Which among the following is the earliest literary work in Tamil language?
A. Manimegalai
B. Silappadikaram
C. Thirukkural
D. Tolkappiyam
22. Who has been appointed in 2018 as the Principal Scientific Advisor to the Government of
India?
(A) S.N. Joshi

(B) Rakesh Aggarwal
(C) K Vijay Raghavan
(D) Vinod Kumar
23. Escape velocity of a rocket fired from the earth towards the moon is a velocity to get rid of
the:
A. Centripetal force due to Earth’s revolution

B. Earth’s gravitational pull
C. Centripetal force due to Earth’s rotation
D. Moons gravitational pull
24. From which animal is catgut usually made of?
A. Sheep
B. Camel
C. Cat
D. Rabbit
25. Who wrote the book Der Ursprung der Familie, des Privateigenthums und des Staats / The
Origin of the Family, Private Property, and the State?
A. Friedrich Engels
B. Lewis H. Morgan
C. Karl Marx
D. Friedrich Carl von Savigny
26. Name the part of the human body reclassified as an organ due to research conducted in the
past decade.
A. Alimentary
B. Mesentery
C. Epithelium
D. Spleen
27. The World’s first ‘negative emissions’ power plant has been built in
A. Iceland
B. Poland
C. Finland
D. China
28. Which platform has been launched by the Union Government on the occasion of the 2018
International Women’s ay?
A. Women Entrepreneurship Platform

B. Women Combat Platform
C. Women Power Platform
D. Women Literacy Platform
29. Who is the author of ‘The Coalition Years 1996-2012’?
A. Manmohan Singh
B. Pratibha Patil
C. Sharad Pawar
D. Pranab Mukherjee
30. What does ‘NITI’ in Niti Ayog stand for?
A. National Invitation To Invest in India

B. New India Transformation Initiative
C. National Institution for Transforming India
D. Nayi India Turant India
31. In commemoration of which of the following events, is May 1 celebrated in many places as
the International Workers’ ay?
A. The Haymarket affair, Chicago

B. Foundation Day of International Labour Organisation
C. Commencement of the First International Labour Conference
D. Concluding Day of the Russian Revolution
32. The National Social Security Board functioning under the Ministry of Labour and
Employment is meant for recommending formulation of social security schemes for
A. Industrial workers
B. Women and Children
C. Government employees
D. Unorganised workers
33. The scarcity definition of economics is credited to
A. Alfred Marshall
B. Lionel Robbins
C. Adam Smith
D. Dennis Robertson
34. Name the digital payment app introduced by Google in 2017 for India.
A. BHIM
B. Tez
C. Citrus Pay
D. MobiKwik
35. Which of the following countries runs bullet trains with the highest operational speed?
A. China
B. Germany
C. South Korea
D. USA
36. Who became the Chief Justice of the Federal Court of India on 14 August, 1947?
A. Maurice Gwyer
B. Patanjali Shastri
C. H.J. Kania
D. Srinivas Varadachariar
37. In which country outside India has the Energy Efficiency Services Limited, under the
Ministry of Power, Government of India, launched the UJALA scheme in 2017?
A. Malaysia
B. Srilanka
C. Indonesia
D. Maldives
38. Which is the organisation that initiates and presents the National Film Awards in India?
A. Film and Television Institute of India

B. Central Board of Film Certification
C. Directorate of Film Festivals
D. Prasar Bharati
39. In 2017, eBay India was merged with which of the following Companies?
A. Flipkart
B. Alibaba
C. Naaptol
D. Snapdeal
40. The world’s first fully Solar-powered Airport is
A. Cochin International Airport

B. Shanghai Pudong International Airport
C. Dubai International Airport
D. Singapore Changi Airport
41. The winner of the Jnanpith Award 2017 is
A. G. Sankara Kurup
B. Shankha Ghosh
C. Raghuvir Chaudhari
D. Krishna Sobti
42. What do the paintings of Ajanta caves primarily depict?
A. Ramayana
B. Panchatantra
C. Jataka tales
D. Mahabharata
43. Cancelled
44. What is the theme of the 2018 World Wildlife Day?

A. Stop wildlife crime
B. Listen to the young voices
C. Big cats: predators under threat
D. The future of wildlife is in our hands
45. In which athletics event did Bob Beamon hold the world record for 23 years?
A. Triple jump
B. High jump
C. Long jump
D. Steeple chase
46. Which State government has come up with a Water ATM Policy in April 2018?
A. Haryana
B. Maharashtra
C. Uttar Pradesh
D. Madhya Pradesh
47. The military operation which annexed Hyderabad into the Indian Union was code-named
as:
A. Operation Meghdoot
B. Operation Polo
C. Operation Viraat
D. Operation Vijay
48. Which of the following movies won the Best Movie Oscar Award 2018?
A. The Shape of Water

B. Call Me by Your Name
C. Darkest Hour
D. Dunkirk
49. Who is the first woman Defence Minister of Independent India:
A. Nirmala Sitharaman
B. Indira Gandhi
C. Sushma Swaraj
D. Sheela Dixit
50. What is the motto of the Supreme Court of India?
A. Satyameva Jayate
B. Dharmo Rakshati Rakshitah
C. Sarve Jana SukhinoBhavanthu
D. Yato Dharmastato Jayah
3. Logical Set 1 (Qs 91 – 130)
1. Find the missing group in the sequence

X7D, V11G, T13J, _____, P19P
A. Q15M
B. R17M
C. Q17L
D. R15M
2. Find the missing number in the sequence

9, 3, ___, 1/3, 1/9
A. 2
B. 6
C. ½
D. 1
3. Which word does not belong with the others?
A. Flute
B. Clarinet
C. Saxophone
D. Violin
4. Find the next group of alphabets

CFI, DHL, ILO, LPT, ________?
A. ORU
B. RUW
C. OQT
D. OSV
5. If “VOLKSWAGEN” is written as “UQKMRYZI P” then “SWITZERLAN ” is written as

___________________?
A. RVHSYDFPMOD
B. TXJUAFSMBOE
C. RYHYVGQNZPE
D. RYHVYGQNZPC
6. In an archery match, Suresh’s team got more scores than Mahesh’s team but not as many
as Yogesh’s team Yogesh’s team got more scores than Mukesh’s team Mukesh’s team got
less score than Mahesh’s team
Which team is in second place in the descending order of scores?
A Yogesh’s team
B Mukesh’s team
C Suresh’s team
D Mahesh’s team
7. Choose the word that is not a necessary part of the underlined word.
Movie
A. Scene
B. Video
C. Duration
D. Dialogue
8. The doctor is a person who looks after the sick people and prescribes medicines so that the
patient recovers fast. In order to become a doctor, a person has to study medicine. Doctors
lead a hard life. Their life is very busy. They get up early in the morning and go to the
hospital. They work without taking a break. They always remain polite so that patients feel
comfortable with them. Since doctors work so hard we must realise their value.
Based on the above paragraph, who among the following is/are doctor(s)?
i. Kumar Sharma wakes up early in the morning everyday and treats everyone with
patience. He usually gives emergency aid to the persons who are injured in
accidents.
ii. Rakesh studied medicine in Russia and practiced medicine there for 2 years.
Later, stopped medical practice and turned into some business.
iii. Shalini works in Apollo Hospitals. She always remains polite so that patients feel
comfortable. She is a specialist in providing quality care for the cancer patients.
a. All are doctors

b. Rakesh and Shalini are the doctors
c. Kumar Sharma and Rakesh are doctors
d. Only Rakesh is a doctor

Directions: Read the passage given below and answer the Question.
Ten friends attended a marriage, five of them Venkat, Manohar, Ravi, Prasanth and Tilak are
sitting in a row facing North and other five friends Vidya, Maya, Divya, Keerthi and Anu are
sitting in a row facing south not exactly in the same order. Each friend in a row is facing exactly
one from the other row. One of them is using a Skoda Car. Manohar sits opposite to his friend
who is using a Ford Car and sits at one of the extremes. The friend who uses a Honda car, is not
Ravi who sits second to the right of Manohar. Venkat sits exactly in the middle of Ravi and the
friend who uses a Nissan car is not Manohar. Keerthi does not sit at the extreme end but uses a
Tata car and sits opposite the friend who uses a Fiat Car. The one who uses a Maruthi car sits
opposite to the friend who is to the immediate left of Keerthi. The friend who uses a Toyota Car
but not Anu, sits opposite Prasanth. Tilak does not sit at any of the extremes, but sits opposite
the friend who uses a Chevrolet car, and is sitting adjacent to Divya and the friend who uses a
Mahindra car. Vidya neither uses Chevrolet nor Toyota cars.
9. Who uses the Mahindra Car?
A. Venkat
B. Anu
C. Vidya
D. Divya
10. Keerthi is how many places away from the one who uses the Ford car?
A. One
B. Three
C. Four
D. Two
11. Who sits third to the left of the one who uses the Chevrolet?
A. Anu
B. Maya
C. Divya
D. Vidya
12. Which one does not belong to the group?
A. Maruthi
B. Skoda
C. Honda
D. Mahindra
13. Which is the car used by Maya?
A. Toyota
B. Chevrolet
C. Mahindra
D. Ford
14. In a queue, I am the last person while my friend is seventh from the front. If the person
exactly between me and my friend is on the 23rd position from the front, what is my
position in the queue?
A 37
B 36
C 38
D 39
Directions: Read the statement and on the basis of that, choose the most appropriate course of
action(s) given below the statement.
15. Statement: Most of those who study in premier Medical colleges in India migrate to
developed nations for better prospects in their professional pursuits.
Courses of Action:
I. All the students joining these colleges should be asked to sign a bond at the time
of admission to the effect that they will remain in India at least for ten years
after they complete their medical education.
II. All those students who desire to settle in the developed nations should be asked
to pay the entire cost of their education which the government subsidised.
A. Only I follows
B. Only II follows
C. Both I and II follow
D. Neither I nor II follows
Directions: Read the statement and on the basis of that, choose the most appropriate course of
action(s) given below the statement.
16. Statement: Official data show more people died on Indian roads in 2016 than in 2015; UP
and Tamil Nadu accounted for the largest numbers of fatalities.
Courses of Action:
I. Government should make a policy regulating the manufacturing of automobiles
for private use.
II. Government should take steps to create awareness among the public about
road safety.
III. Accidents can be avoided if the Government takes steps to make good roads.
IV. To eliminate accidents completely the Government should impose stringent
punishments for traffic violations.
A. Only II and IV follow

B. Only II follows
C. Only III and IV follow
D. Only IV follows
Directions: Read the statements and presume that whatever statements given are true. On
the basis of that, choose the most appropriate conclusion(s) given below.
17. Statements: Some rats are cows. All cows are animals.
Conclusions:
I. All rats are animals
II. Some animals are rats
A. Only Conclusion I follows

B. Only Conclusion II follows
C. Both Conclusions I and II follow
D. Neither Conclusion I nor Conclusion II follows.
Directions: Read the statements and presume that whatever statements given are true. On the
basis of that, choose the most appropriate conclusion(s) given below.
18. Statements: All the students are young. All the teens are young. Some men are teens.
Conclusions:
I. Some students are teens.
II. Some young are students.
III. Some young are men.
A. Only (I) follows
B. Only (II) and (III) follow
C. Only (I) and (II) follow
D. Only (I) and (III) follow
19. ‘X’ started walking towards the west, after travelling 5 kilometres turned exactly to his
right and walked 3 kms. Then he decided to walk exactly to his left. On reaching 2
kilometres, he heard a voice and walked back Then he noticed that, his friend ‘Y’ was
walking towards him from his right side In which direction is ‘Y’ walking?
A. East
B. West
C. North
D. South
20. If ‘ ECEMBER’ is ‘AUGUST’, 'MARCH’ is ‘MAY’, ‘SEPTEMBER’ is ‘SEPTEMBER’ and ‘OCTOBER’

is ‘JULY’, then ‘JUNE’ is?
A. FEBRUARY
B. APRIL
C. JANUARY
D. NOVEMBER
Case Questions with 2 questions
Directions: Read the information below and answer the question.
A neurosurgeon, an orthopaedist, a plastic surgeon and an ophthalmologist visited the patient

after a surgery.
The time of each visit is mentioned below:

Neurosurgeon at 7:45
Orthopaedist 8:30
Plastic surgeon 9:15
Ophthalmologist 9:50
Each time mentioned above may be either A.M. or P.M.
21. If the ophthalmologist generally goes for his rounds before the surgeons, but not unless any
other doctor does, and the neurosurgeon is not the last to go for his rounds, what is the
correct sequence of their visit?
A. Orthopaedist, Neurosurgeon, Plastic surgeon, Ophthalmologist

B. Neurosurgeon ,Orthopaedist, Plastic surgeon, Ophthalmologist
C. Orthopaedist, Ophthalmologist, Neurosurgeon, Plastic surgeon
D. Ophthalmologist, Orthopaedist, Neurosurgeon , Plastic surgeon
22. Who were the doctors to visit the patient in the evening?
A. Neurosurgeon and Plastic surgeon

B. Plastic surgeon Ophthalmologist and Neurosurgeon,
C. Orthopaedist and Neurosurgeon
D. Ophthalmologist and Orthopaedist and Plastic surgeon
23. Samantha is your father’s mother’s grandson’s daughter Therefore, Samantha is your
A niece
B sister
C uncle
D brother
24. Look at this series: 7, 10, 8, 11, 9, 12, ... What number should come next?
A 7
B 10
C 12
D 13
25. In an interview for selection of two District Judges, four candidates, P, Q, R and S were
shortlisted. All of them had 10 years standing as Lawyers. Who among them are most
suitable?
I. P – Very academic not much interested in litigation practice, very honest and
impatient.
II. Q – A patient listener, average in academics, thorough with Laws and sharp.
III. R – Jovial, Patient, good academic records and actively involved in politics.
IV. S – Shrewd, Quick tempered, punctual and Published several Legal articles
A. P and Q
B. Q and S
C. R and S
D. P and S
26. Find the odd one out
A. Bat
B. Vulture
C. Eagle
D. Owl
Direction: Read the information below and answer the Question.
On the farewell day five best friends, namely, Vishal, Anirudh, Gaurav Mansi and Sapna, clicked
their photo, facing the photographer who is on the west.
They were standing as per the following conditions:
i. Sapna stands to the right of Mansi and Gaurav

ii. Gaurav stands to the left of Vishal and Sapna
iii. Mansi stands between Vishal and Anirudh
iv. There are two people between Anirudh and Gaurav
27. Who will be standing at the 2nd position from the right in the photograph?
A. Vishal
B. Mansi
C. Gaurav
D. Anirudh
28. Who stands to the left of Anirudh?
A. Sapna
B. Gaurav
C. Mansi
D. Vishal
29. Find the equivalent for ' ? '
Sphygmomanometer : Blood Pressure :: Pyrometer: ?
A. Temperature
B. Blood Flow
C. Urine Flow
D. Atmospheric Pressure
30. From morning 11 O’ clock to Evening 7 O’ clock, how many times the hour hand and
minutes hand will overlap each other?
A. 9
B. 8
C. 7
D. 6
31. Find the odd one out
A. Police station
B. Railway station
C. Supermarket
D. Airport
Direction: Read the following carefully and answer the question given below
32. Although women now constitute 30 percent of the global industrial force, legal hurdles and
traditional barriers still hinder the vast majority of women in their efforts to achieve parity
with men.
The paragraph best supports the statement
A. The Author claims that Feminism rules.

B. Equality of men and women is still a myth.
C. Women should surpass men in all the fields.
D. The Author claims that women have to take more efforts.
33. If TEACHER is coded as CAHEETR and STUDENT is coded as DUETNST, then what is the code
for SUCCESS?
A. CECSUSS
B. CCEUSSS
C. SCUSCES
D. UCSECSS
Direction: Read the following and answer the Question.
Chetan invited five of his friends, namely Ritwik, Avantika, Darshan, Parul and Shweta to his
birthday party. Each of the five friends gifted Chetan a different article – a jacket, a watch, a
shirt, a video game and a headphone. As a return gift, Chetan gifted each of them a different
article – goggles, a bag, a pen, a mobile case and a diary. The following is additional information
about the gifts given by the friends and the return gifts they received.
i. Avantika gifted the shirt but did not receive a bag in return.
ii. Shweta did not gift the headphone but received the mobile case in return.
iii. Neither Ritwik nor Darshan gifted the jacket but the person who did gift it, received the
goggles in return.
iv. The person who gifted the video game received a diary or a bag.
v. Darshan did not gift a watch but received a pen in return.
vi. Neither Shweta gifted a video game nor did Ritwik received a diary in return.
34. Who gifted the watch?

A. Shweta
B. Darshan
C. Ritwik
D. Parul
35. Who received goggles as a return gift?
A. Avantika
B. Ritwik
C. Parul
D. Darshan
36. Which among the following combination is correct?

A. Avantika – Bag
B. Ritwik – Video Game
C. Ritwik – Diary
D. Parul – Watch
37. Who gifted the headphones?

A. Shweta
B. Ritwik
C. Darshan
D. Parul
38. Which among the following combination is correct?

A. Avantika – Diary
B. Headphones – Diary
C. Ritwik – Goggles
D. Watch – Bag
39. The one who received the bag in return, gifted which among the following items?
A. Watch
B. Video Game
C. Headphones
D. Jackets
40. Direction: Examine the following expressions/activities/processes, and arrange them in the
most logical sequence.
1. Design, 2. Need, 3. Launching, 4. Research, 5. Testing, 6. Identify
A. 4, 1, 6, 2, 3, 5
B. 2, 6, 4, 1, 5, 3
C. 3, 5, 4, 1, 6, 2
D. 2, 4, 1, 5, 6, 3
4. Maths Set 1 (Qs 131 – 150)
1. The value of the expression
( )
is
A.
B. 2
C.
D.
2. The fractions , and are arranged in

ascending order of magnitude as
A. , ,
B. , ,
C. , ,
D. ,
3. Let x be the greatest number of 4 digits, which when
divided by 15, 20 and 28 leaves in each case the
remainder 2. The sum of digits of x is
A. 19
B. 21
C. 23
D.25
4. A student was asked to simplify the expression:
his answer was . What is the difference between

his answer and the correct answer?
A.
B.
C.
D.
5. When 13511, 13903 and 14589 are divided by the
greatest number ‘n’, the remainder in each case is
‘m’ The value of (n + m) is
A. 183
B. 182
C. 181
D. 179
6. ABCD is a quadrilateral in which measures of angle D
and angle C are 60o, and 100 o respectively. If the
internal bisectors of angle A and angle B meet at P,
then measure of angle APB is
A. 80 o
B. 90 o
C. 100 o
D. 110 o
7. Suman saves 10% of her monthly salary. Now her
expenditure increases by 30% and savings increases
by 50%. The present increase in her salary is
A. 25%
B. 30%
C. 32%
D.40%
8. A sum amounts to Rs. 9680 in 2 years and to Rs.
10648 in 3 years respectively at compound interest.
What will be the amount if the same sum is invested
for years at the same rate of compound interest?
A. Rs. 9025
B. Rs. 9152
C. Rs. 9215
D.Rs. 9251
9. The marked price of an article is 20% more than the
cost price. If the article is sold at a discount of 15%
on its marked price, then the gain percent is
A. 5
B.
C.
D.
10. Reshma sells an article to Rekha at 37.5% profit,
Rekha sells it to Madhu at % profit. Again Madhu
sells it to Mitu at 25% loss. If Mitu pays Rs. 342 for
the article, then what is the cost price of the article
to Reshma?
A. Rs. 304
B. Rs. 266.50
C. Rs. 380
D. Rs. 384.75
11. The number of children in a camp is x and their
average weight is 20 kg. If 5 children each weighing
12 kg, join the camp or if 10 children each weighing
21 kg leave the camp, the average weight in both the
cases remain the same. The value of x is
A. 18
B. 16
C. 15
D.14
12. In a 120 litre of solution of Acid and water, acid
is 75%. A person takes out 20 litres of this solution
and added 16.2 litres of acid and 3.8 litres of water
in the remaining solution. What is the percentage of
water in the final solution?
A. 22
B. 24
C. 25
D. 28
13. Twelve men and 5 women can complete a work
in 2 days whereas 4 men and 3 women can complete
the same work in 5 days. In how many days can 8
men complete the work?
A. 3
B. 4
C. 5
D. 6
14. a and b are inversely proportional to each other
and are positive. If a increases by 100%, then b
decreases by
A. 50%
B. 75%
C. 100%
D. 200%
15. Four pipes A, B, C and D can fill a tank with
water in 15, 20, 30 and 60 hours respectively. Pipe A
is opened at 4 a.m., B at 5 a.m., C at 6 a.m. and D at
7 a.m. When is the tank filled up completely?
A. 9:30 a.m.
B. 10:00 a.m.
C. 10:30 a.m.
D. 11:00 a.m.
16. If a person travels at a speed of 40 km/h he will
reach his destination on time. He covered half the
journey in of time. At what speed (in km/h) should
he travel to cover the remaining journey to reach the
destination on time?
A. 48
B. 50
C. 60
D. 72
17. The parallel sides of a trapezium shaped field
are 25 m and 10 m and non parallel sides are 14 m
and 13 m. What is the area (in m2) of the field?
A. 204
B. 196
C. 156
D. 144
18. x2 (a-b) + a2(b-x) + b2 (x-a) is factored as
A. (a-b)(x-a)(x-b)
B. (a-b)(x-a)(x+b)
C. (b-a)(x+a)(x-b)
D. (a+b)(x-a)(x+b)
19. Three fair dice are thrown simultaneously. What
is the probability that the sum of numbers on their
tops, is at least 6?
A.
B.
C.
D.
20. Six dice are stacked on the floor as shown in the
figure below. On each dice, the sum of numbers on
opposite faces is 7, i.e., if 1 is written on one face
then 6 is written on the face opposite it and so on.
What is the maximum possible sum of numbers on

the 21 visible faces?
A. 88
B. 89
C. 96
D. 147
5. Legal Aptitude Set 1 (Qs 151 – 200)

1. Article 51-A on Fundamental Duties was inserted into the Constitution of India through the
A. 41st Constitution (Amendment) Act, 1976
B. 44th Constitution (Amendment) Act, 1978
C. 40th Constitution (Amendment) Act, 1976
D. 42nd Constitution (Amendment) Act, 1976
2. The highest law officer in India is the

A. Attorney General
B. Advocate General
C. Solicitor General
D. Chief Justice of the Supreme Court of India
3. How many languages are there in the Eighth Schedule of the Constitution of India?
A 21
B 22
C 19
D 18
4. A Panchayat Samiti at the block level in India is only a/an:

A Administrative authority
B Co-ordinating and Supervisory authority
C Consultative Committee
D Advisory body
5. Which of the following is NOT a fundamental duty as per the provisions of the Constitution
of India?
A To uphold and protect the sovereignty, unity and integrity of India

B To join the Defence Forces of India
C To defend the country and render national service when called upon to do so
D To value and preserve the rich heritage of our composite culture
6. The Right to Education Act, 2009 (RTE) provides for free and compulsory education to:
A All illiterate children of India

B All citizens of India
C Children aged between 6 and 14 years
D All children up to the age of 10 years
Directions: The question below consists of two statements, one labeled as ‘Assertion’ (A) and
another as ‘Reason’ (R). Examine these two statements carefully and select the answers to
these items from the codes given below.
7. Assertion (A): It is the legal and constitutional duty of the State to provide legal aid to the
poor.
Reason (R): No one should be denied justice by reason of his poverty.

Codes:
(A) Both A and R are individually true and R is the correct explanation to A
(B) Both A and R are individually true but R is not the correct explanation to A
(C) A is true but R is false
(D) A is false but R is true
8. Which was the law introduced by Sir William Bentinck to prohibit the practice of Sati?
A. Bengal Sati Regulation, 1829

B. U.P. Sati Prohibition Act, 1828
C. Indian Sati Prohibition Act, 1827
D. Rajasthan Sati (Prevention) Act, 1830
9. Legal Principle: Nothing is an ‘offence’, if committed by a child below seven years of age
Fact Situation: Adil, aged six years, is a student of class one. He placed his sharpened pencil
on the bench with its pointed end up when his classmate Ajay stood up to answer a
question from the teacher. Ajay gets hurt when he sits on the pencil and Adil and his friends
have a good laugh. Ajay’s father, on seeing his son injured when he returns home, wants
action against Adil.
Which of the following statements is the most appropriate in relation to the legal
principle stated above?
A. Adil has committed an ‘offence’
B. Adil has not committed any ‘offence’.
C. Childish pranks cannot be investigated by the police.
D. The class teacher must be arrested.
10. Legal Principle: The doctrine of basic structure in Constitutional jurisprudence means that
the Constitution of India has certain basic features that cannot be taken away through
amendments by the Parliament. The power of judicial review is a part of the basic structure
and it helps the constitutional Courts to determine whether an amendment is against the
basic structure or not.
Fact Situation: Parliament proposes an amendment to limit the power of appeal against
conviction for the offence of Sedition, to be exercised only by the Supreme Court of India.
A. The proposed amendment is against the doctrine of basic structure.

B. The proposed amendment is unconnected to the doctrine of basic structure.
C. The proposed amendment can be reviewed and struck down by the Constitutional
Courts.
D. The proposed amendment is beyond the power of the Parliament.
11. Who among the following was the first Chairman of the Constituent Assembly in India?
A. Dr. Rajendra Prasad

B. Dr. Sachchidananda Sinha
C. Harendra Coomar Mookerjee
D. Dr. B.R. Ambedkar
12. Legal Principle: It is an offence to obstruct a public servant in the due discharge of his duty.
Right of private defence is available to protect one’s person and property
Fact Situation: Sidhu comes to the rescue of his uncle who is sought to be taken into a car
by some men. In the process, he causes injury to some of them. Later, it turns out that the
men were police persons in plain clothes trying to enforce a warrant against his uncle.
A. Sidhu has committed the offence of obstructing a public servant in due discharge
of his duty.
B. Sidhu has not committed an offence since he did not know that the men were
from the police.
C. Sidhu’s uncle has resisted arrest and should be proceeded against
D. Sidhu should not have tried to help his uncle without ascertaining the fact
13. Legal Principle: An employer is liable for the act of his servant performed during the course
of employment.
Fact Situation: While working as a driver for Verma, Alok sometimes used to earn some side
income by carrying parcels for others in Verma’s car without his knowledge or permission
While going to pick Verma from the airport one day, Alok stopped to deliver a parcel he was
carrying with him. While he was delivering the parcel, which unknown to him was one of
contraband goods, the police arrested Alok.
A. Verma is liable for the act of Alok since he is Verma’s driver

B. Vermais liable for the act of Alok since he had gone to pick Verma from the airport.
C. Verma is not liable for the act of Alok since Alok himself did not know that he was
carrying contraband goods.
D. Verma is not liable for the act of Alok since carrying the parcel was not in the course of
his employment.
14. Which law introduced the system of dyarchy in India during the British reign?
A. The Government of India Act,1858

B. The Government of India Act, 1909
C. The Government of India Act, 1919
D. The Government of India Act, 1935
15. Legal Principle: The Latin maxim nemo bispunitur pro eodemdelicto means that nobody can
be punished twice for the same offence.
Fact Situation: Sajan, a petty thief, is caught and thrashed thoroughly by the people before
being handed over to the police. Sajan pleads before the magistrate that since he was
already thrashed by the people he should not be again punished by the State.
A. Sajan is right since nobody should be punished for the same offence twice.
B. Thrashing given by the people does not amount to legal punishment and so Sajan
can be punished by the State.
C. Giving a good thrashing to the thief is the best form of punishment to prevent future
theft.
D. The Magistrate should take into consideration the thrashing received by Sajan while
fixing his punishment.
16. Legal Principle: The Latin maxim qui facit per alium, facit per se means that he who acts
through another, acts himself.
Fact Situation: Heema requests her minor sister Harika to purchase a bag for her from the
local shop. Harika purchases the bag on credit telling the shop keeper that her sister will pay
for it. Afterwards, Heema refuses to pay for the bag.
A. Since Heema has not purchased the bag herself she is not liable to pay for it.
B. Harika being a minor the shop keeper should not have sold the bag to her.
C. Since she purchased the bag through her sister, Heema is liable to pay for it.
D. Harika being a minor should not have been entrusted by Heema for the purchase of
the bag.
17. Legal Principle: Negligence is the absence of care by one party which results in some
damage to another. Damage is an essential ingredient to constitute a tort of negligence.
Fact Situation: Mistry left his ladder on the public road while unloading it from a truck when
he went to open the shutters of his shop. Saini who was riding his motorcycle had to swerve
hard to avoid hitting the ladder as he came with speed on the road. Saini fell down but was
miraculously not injured.
A. Mistry is not liable for the tort of negligence since Saini was not injured though he
fell down.
B. Mistry is liable for the tort of negligence since Saini fell down due to the presence
of the ladder.
C. Mistry is not liable for the tort of negligence since Saini was speeding on the road.
D. Mistry is liable for the tort of negligence since he was careless in leaving the ladder
on the road.
18. Legal Principle: Every partner is liable alone and jointly with other partners for the debts of
a partnership firm incurred for the business. Every partner is an agent of every other
partner while being a principal in his own right in the business of the partnership.
Fact Situation: Varun is a partner in a firm with Chinmoy and Jaffar. Jaffar purchases a car
for his personal purpose and obtains credit for the same in the name of the partnership
behind the back of the other partners. He fails to pay the due amount on the expiry of the
period of credit.
A. Varun, Chinmoy and Jaffar are liable to pay for the car since they are partners and
the credit was obtained in the name of the firm.
B. Varun and Chinmoy are not liable to pay for the car since Jaffar purchased it for
his personal purpose.
C. Varun, Chinmoy and Jaffar are liable as partners for all credit obtained in the name
of the firm even if it is for the personal purpose of a partner.
D. Jaffar can use the credit of the firm to make purchases even for personal purposes
since he is a partner in the partnership.
19. Legal Principle: Parents are not liable for wrongs committed by their children unless they
provide the opportunity for such wrongful acts to be committed by their children.
Fact Situation: Sunil, a minor, takes the keys to his father’s car from the table top where his
father keeps it, drives the car on the public road and hits a pedestrian who gets injured.
A. Since Sunil took the car without his father’s permission, his father is not liable for
Sunil’s act resulting in the accident
B. Sunil’s father is liable for the conduct of Sunil resulting in the accident since he left
the car keys where his son could easily take it without permission.
C. Accidents happen despite utmost care and hence neither Sunil nor his father is liable
in the instant case.
D. Sunil’s father is not liable since he had kept his car locked and securely deposited its
keys without negligence on his table top.
20. Legal Principle: No remedy lies in law where an injury is caused to a person without any
infringement of his legal right.
Fact Situation: Ashutosh started a tuition Centre right next to the one being run for the past
twenty years by Gulshan. After Ashutosh started his Centre, a large number of students
shifted from Gulshan’s tuition Centre to Ashutosh’s Centre forcing Gulshan to close down
his establishment suffering huge losses. Can Gulshan initiate legal action against Ashutosh?
A. Ashutosh must compensate Gulshan for his loss consequent to the start of the
new tuition centre.
B. Gulshan cannot blame Ashutosh if he cannot retain his students.
C. Ashutosh has not violated any legal right of Gulshan, though students shifted
to Ashutosh’s Centre and though Gulshan suffered loss, after he shut down his
tuition Centre.
D. Gulshan should have improved his quality with lower fees to retain his students
in the light of competition brought in by Ashutosh.
21. Legal Principle: Article 20(3) of the Constitution of India states that no person accused of
any offence shall be compelled to be a witness against himself.
Fact Situation:Ubaid refuses to give a sample of his blood after he is stopped by the police
for driving over the speed limit. The police suspect him to be driving under the influence of
alcohol, which is prohibited under the law.
A. Ubaid is protected by Article 20(3) in his refusal to give a blood sample.

B. Ubaid is not protected by Article 20(3) as he was under the influence of alcohol.
C. Ubaid is not protected by Article 20(3) in his refusal to give a blood sample since
he is not accused of any offence yet.
D. Refusal to give a blood sample is a crime and Ubaid must be punished for the
same.
22. The law which provides special powers to the Armed Forces in India is popularly known as:
A. AFSPA
B. POTA
C. TADA
D. SARFAESI
23. Legal Principle: The law states that a food business operator must be registered with or
licensed by the Food Safety and Standards Authority of India (FSSAI) to run a food
business.
Fact Situation: Kavita’s neighbours suffer food poisoning after consuming sweets gifted
by her on the occasion of a celebration at her home. Kavita does not have a registration
or license from the FSSAI.
A. Kavita is in violation of the law since she does not have a FSSAI registration or
license.
B. Kavita is not in violation of the law since she did not make the sweets she gave
by way of gift.
C. Law does not apply in cases like this where transactions happen between
neighbours.
D. Kavita need not take a license or register with FSSAI since she is not running a
food business.
24. Legal Principle: An agreement entered into by way of a wager/bet is unenforceable in law.
Fact Situation: Thomas is very good at predicting outcomes of cricket matches. Raja and
Hoja give him rupees thousand each to enable him to bet with others about the outcome of
a cricket match. Thomas wins rupees three lakh after betting three thousand rupees.
A. Thomas must share rupees three lakh with Raja and Hoja equally.
B. Thomas must return rupees thousand each to Raja and Hoja.
C. Thomas need not share the three lakh with Raja and Hoja since it is the outcome
of an unenforceable agreement.
D. If Thomas does not pay them rupees two lakh each, Raja and Hoja can sue him to
recover their share.
25. Legal Principle:‘Audi alteram partem’ is a Latin phrase which means ‘hear the other side’ It
is the principle that no person should be judged without a fair hearing.
Fact Situation: Sanjay, in Delhi, is accused of theft and brought before the Court. The
magistrate discovers that Sanjay is mute.
A. The principle is not applicable to Sanjay since he is mute.
B. The principle is applicable to Sanjay even though he cannot speak since he can be
asked to write down his defence.
C. The Magistrate has to take all measures to understand what Sanjay has to convey
about the accusation against him.
D. Since it is a Latin principle it is not applicable in India.
26. Legal Principle: An essential condition in a contract for sale of goods is that the seller has
title over the goods sold.
Fact Situation: Ranjan pays rupees two thousand and buys a watch from Mohit who runs a
watch showroom and a repair shop.Jatin sees the watch with Ranjanand tells him that it is
his watch and was only given to Mohit for repairs. If what Jatin says is true,
A. Ranjan is now the owner of the watch since he paid rupees two thousand for it.
B. Ranjan is not the owner of the watch since Mohit did not have a title to it.
C. Mohit must pay Jatin rupees two thousand since he sold Jatin’s watch
D. Mohit is the owner of the watch since he sold it to Ranjan.
27. Legal Principle: The insurer agrees to pay no more than the actual amount of the loss.
Fact Situation: Sunny insures his car worth rupees five lakh with X, an insurance company,
for its value. He again insures the same car with Y, another insurance company, on the same
terms. There is an accident and the car suffers a total loss. In his separate suits against X and
Y, if Sunny recovers rupees five lakh from X, how much can he recover from Y?
A. Sunny can recover rupees five lakhs from Y.
B. Sunny cannot recover any amount from Y.
C. Sunny must pay Y, the rupees five lakhs he received from X.
D. Sunny cannot insure his car with both X and Y at the same time.
28. Legal Principle: When there is an infringement of the legal right of a person, he gets a right
to sue the wrongdoer for remedy irrespective of any actual loss caused.
Fact Situation: Saroj is prevented from voting at an election. The candidate she intended to
vote for, wins the election.
A. Saroj’s legal right has been violated and she can sue the persons who prevented
her from voting.
B. Since Saroj‘s candidate has won the election, her rights are not violated and she
cannot sue.
C. Since Saroj is not the candidate, her rights are not violated if she is prevented from
voting.
D. This principle is not at all applicable in this case.
29. Which of the following is the oldest law code in India?
A. Hammurabi’s code
B. Prasarsmriti
C. Manusmriti
D. Naradasmriti
30. Legal Principle: A product cannot be sold in shops to consumers after its date of expiry.
Fact Situation: Lata, while shopping, notices that the milk packets on the shelves are due for
expiry on that day. She objects to this to the shopkeeper, saying that since she was there to
buy milk for the next day, keeping the milk on its date of expiry was against the law.
A. Lata is right and the shopkeeper should take the milk packets off his shelves.
B. The shopkeeper should not sell the milk packets after the date of expiry is over.
C. The shopkeeper must remove the milk packets from the shelves and keep it
refrigerated.
D. Milk is not a product and hence the principle is not applicable in this case.
31. Legal Principle: Nuisance is the unlawful interference with a person’s enjoyment of his land
or some rights over or in connection with it.
Fact Situation: Ashok, in his nineties, is hard of hearing and plays the radio very loudly
throughout the day and on a daily basis. Raju, his neighbour, complaints that he cannot
listen to his favourite TV show in his home due to the radio of Ashok.
A. Listening to the radio is Ashok’s freedom

B. Ashok is creating nuisance to his neighbour by playing the radio loud perpetually
and disturbing Raju in being able to listen to the TV in his home.
C. Raju is creating nuisance by complaining about Ashok’s enjoyment of hearing his
radio.
D. Raju should appreciate that Ashok is aged and hard of hearing.
32. Legal Principle: Agreements in restraint of trade are void and unenforceable.
Fact Situation:Manu has been working as a blacksmith in his village for many decades.
Somu has been undergoing training with him for the past three years. After his training is
over, Somu enters into an agreement with Manu that he will not start a competing business
in the same village while Manu is alive.
A. This agreement is void and unenforceable since it is a restraint on trade.

B. This agreement is valid and enforceable since Manu is Somu’s teacher
C. This agreement is valid but not enforceable after Manu’s death
D. This agreement is valid and enforceable since it is to protect Manu’s interest in
consideration for teaching Somu to be a blacksmith.
33. What does FIR stand for under the Criminal Law?
A. Forensic Investigation Report

B. First Investigation Report
C. First Information Report
D. Formal Interrogation Record
34. Under which of the following enactments, is the use of mobile phone while driving made
punishable?
A. The Information Technology Act

B. The Indian Penal Code
C. The Motor Vehicles Act
D. The Criminal Procedure Code
35. Legal Principle: A person is liable to compensate others for harm caused by the escape of
any inherently dangerous material that he keeps on his land.
Fact Situation: Ankit lights a bonfire in his courtyard to warm himself up during a cold
winter evening. A strong wind suddenly blows some sparks from the fire, on to his
neighbour’s house which catches fire and gets completely destroyed.
A. Ankit’s neighbour is liable to Ankit for distress caused by keeping a house that
catches fire so quickly.
B. Ankit is not liable because nobody could foresee that the sudden wind will blow the
sparks to cause a fire.
C. Ankit’s neighbour cannot make Ankit liable for the loss of his house since it was an
accidental fire that destroyed it.
D. Ankit is liable to compensate because the fire escaped from his premises to burn
down his neighbour’s house.
36. Legal Principle:A characteristic feature of partnerships is the principle of mutual agency,
i.e., every partner is an agent for every other partner and will hence be able to bind them by
his act, within the business of partnership.
Fact Situation: Ram and Shyam are partners of M/s R & S Trading Company which trades in
rice varieties. Ram agrees to purchase ten tons of rice from Govind. Ram dies after the rice
is delivered to the premises of M/s R & S Trading Company but before the payment of price
is made. Is the agreement binding on Shyam?
A. Being partners, Ram’s agreement to purchase rice for their partnership, is not
binding on Shyam.
B. Since Ram is no more, the agreement is not binding on Shyam.
C. Being partners, Ram’s agreement to purchase rice for their partnership, is binding
on Shyam.
D. The agreement is binding on Ram and not on Shyam since the rice is delivered only
to M/s R & S Trading Company and not to Shyam.
37. Who is an Ombudsman?

A. A judicial officer designated to receive complaints against the violation of rights of
citizens.
B. An official who is charged with representing the interests of the public by investigating
and addressing complaints of maladministration or a violation of rights.
C. An elected representative of the people toinvestigate and address the complaints of
maladministration or a violation of rights.
D. A specially designated police officer assigned with the power toinvestigate and address
the complaints of maladministration or a violation of rights.
38. Which authority in India notified the guidelines for the protection of persons assisting
accident victims on Indian roads based on the Supreme Court direction?
A. Ministry of Surface Transport, Govt. of India

B. Ministry of Social Justice, Govt. of India
C. Ministry of Road Transport and Highways,Govt. of India
D. National Human Rights Commission
39. Article 1 of a legal instrument reads: “All human beings are born free and equal in dignity
and rights. They are endowed with reason and conscience and should act towards one
another in a spirit of brotherhood”
Which is the legal instrument being referred to above?
A. National Human Rights Act, 1995
B. Constitution of India, 1951
C. Universal Declaration of Human Rights, 1948
D. Philadelphia Declaration, 1944
40. Examine the Statement and Conclusions given below and choose a suitable answer from the
options given:
Statement: It is a fundamental duty, which is unenforceable in a Court of Law that every
citizen shall renounce practices derogatory to the dignity of women.
Conclusions:
1. Reservation of seats for women in employment is violative of the principle stated.
2. Asking a lady inappropriate questions about her personal life is violative of the principle
stated.
A. Only Conclusion 1 follows.

B. Only Conclusion 2 follows.
C. Conclusions 1 and 2 follow.
D. Neither Conclusion 1 nor 2 follows.
options given:
Statement: A punishment is the imposition of an undesirable or unpleasant outcome upon a
group or individual, meted out by an authority.
Conclusions:
1. Eye for an eye and tooth for a tooth is an example of punishment.
2. Imposition of fine on someone who inflicted bodily injury on another is justified by the
statement.

C. Conclusions 1 and 2 follow.
D. Neither Conclusion 1 nor 2 follows.
options given:
Statement: Necessity knows no law.
Conclusions:
1. The act of a captain throwing some cargo into the ocean to save the ship from sinking is
justified by the principle.
2. The act of a man out of poverty and starvation stealing some food from a hotel is
justified by the principle.
3. The act of a tourist killing a tiger when it was attacking a villager is justified by the
principle.

C. Only Conclusion 1 and 3 follow.
D. All Conclusions follow.
options given:
Statements:
1. Justice delayed is justice denied. Justice hurried is justice buried.
2. More than 3 crore cases are pending in the Indian Courts.
Conclusions:
1. People are not getting justice in India.
2. isposal of cases by ‘Fast track courts’ results in injustice
3. Cases must be disposed off within a reasonable time.

C. Only Conclusion 3 follows.
D. No Conclusion follows.
44. Legal Principle: One of the principles of ‘Natural Justice’ states that, “No person shall be a
judge in his own cause”
Facts: A, a driver of B, a Branch Manager of ABC Bank was caught, suspecting theft, in the
bank premises. The Bank management instituted an enquiry and made B the enquiry
officer.
Which of the following statements is correct?
A. As B is a Bank Manager and not a judge, this principle is inapplicable.
B. Since the suspected theft was in the bank premises, the manager is the only
competent person to enquire. Hence, the principle is not applicable.
C. Since B is the employer of A, B should not be conducting the enquiry on the basis
of the given principle.
D. The principle will be applicable, only if the theft committed by A was in relation to
the car.
45. Legal Principle: Justice should not only be done, but also seen to be done.
Facts: L, an honest Lawyer had 200 shares in Company X. Later, L was elevated to the High
Court as a Judge and had to deal with Company matters. A dispute between Company X
and its creditors came before L for decision.
Which among the following proposition is true?
A. L, as an honest person will definitely judge the matter on the merits only. So, the
principle cannot apply.
B. A judge cannot excuse himself from taking up a case posted before him by the
Court Registry.
C. L should refrain from hearing the matter as he holds shares of the Company X.
D. Since, L has only 200 shares he has no substantial interest in the company and
hence can decide the matter.
46. Legal Principle: A person who keeps hazardous substances in his premises, is responsible
for the fault if that substance escapes in any manner and causes damage.
Facts: A, an industrialist stored 1000 litres of liquid ammonia in a tank in his premises for his
industrial use. There was a leakage from the tank due to which there was ammonia vapour
in the surroundings. Many workers in other industries as well as his own industry and some
members from the public suffered serious health hazards. Examine the liability of A, if any.
A. A may be liable for the injury sustained by his workers only and not others.
B. A is liable as he is responsible for the injury caused by the leakage of ammonia
from his premises.
C. A is not liable because there was no fault on his part for the escape of the
dangerous substance.
D. A is not liable because he did not expect a leakage from the tank.
47. Legal Principle: In the law of evidence, a person missing for long and not heard of, for over
seven years is presumed to have died.
Facts: A, B and C are children of F and M. At the age of 20, A went out in search of a job and
was not contacting the family. All attempts to trace A by the family failed. Eight years after
the death of the parents, B and C entered into a partition and took equal share in the
property of F and M. One year after this, A returned home with his wife and two children
and claimed his share in the property Whether A’s claim is legally sustainable?
A. Since A was not heard of, for more than eight years, the legal presumption of
death will apply and hence, he cannot claim a share in the property.
B. It was A’s duty to be in touch with the family at least once in a year The failure of
this duty will disentitle him from claiming property.
C. A will succeed because he is a legitimate son of F and M.
D. B and C are legally bound to give 1/3rd share of the property to A.
48. Legal Principle: Gift' means transfer of certain existing property made voluntarily and
without consideration, by a donor, to a donee, and accepted by or on behalf of the donee
during the lifetime of the donor.
Facts: Amit executed a gift deed for property ‘X’ in favour of Sooraj, who happened to be
Amit’s loyal servant’s son settled in the U S Two months thereafter, Amit died without
leaving a will regarding his assets Amit’s children initiated steps to partition his entire
property, including property ‘X’ among themselves At that time, Sooraj came to India, and
learning about the gift, claimed the property ‘X’
A. Sooraj can legally get the property ‘X’, as soon as he gets to know about the gift
B. Sooraj cannot legally claim the property ‘X’ because, the children of Amit have
already initiated steps for partition.
C. Sooraj can claim the property ‘X’, because, his acceptance of the gift is implicit by
his conduct of claiming the property as soon as he came to know about the gift.
D. Sooraj apparently did not comply with the essential requirements of a gift and
hence, the entire property including property ‘X’, can be partitioned among the
children of Amit.
49. The right to information under the Right to Information Act, 2005 is a:
A Legal Right
B Fundamental Right
C Human Right
D Constitutional Right
50. The primary legislation relating to organ donation and transplantation, aimed at regulation
of removal, storage and transplantation of human organs for therapeutic purposes and for
prevention of commercial dealings in human organs in India, namely, the Transplantation of
Human Organs Act, was passed in the year
A. 1994
B. 1998
C. 2004
D. 2014

Question Paper

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Question Paper

Uploaded by

Copyright:

Available Formats

COMMON LAW ADMISSION TEST-2020 -UG

Climate change is considered to be one of the most serious threats to sustainable

1. To address the challenge of Climate Change, Developing countries urgently require:

(a) Implementation of National Adaptation Plans

3. Which of the following is against the idea portrayed in the passage?

4. The Traditional Knowledge should be used through

5. What is the meaning of the word ‗Resilience‘ occurring in the passage?

7. As per author, why is this incident a wake-up call for parents?

16. Why has the author lost interest in human beings?

17. The author has compared the night with:

18. Why has the author called the ‗katydids‘ wise?

19. Which of the following can be inferred from the passage?

25. Who was murdered in the scene described in the passage?

28. Which of the following is a significant factor contributing in slow employment of

(a) Hindustan Aeronautics Limited

50. Which of the following rivers is called as Narayani River in Nepal?

65. Which of the following is correct?

a) 1 is Obscene but 2 is not.

Principle 1: Polluter Pays Principle

The 'Doctrine of Polluter Pays' is a well-established principle of environmental law, which

Principle 2: Principle of Strict Liability

Principle 3: Principle of Absolute Liability

Source: Excerpt taken from blog.ipleaders.in (Dated - 12th June, 2019)

(a) Bias rule

CORRECT ANSWER : OPTION A

CORRECT ANSWER : OPTION C

CORRECT ANSWER : OPTION D

(a) Withholding of an increment of a public servant without giving him an opportunity to

CORRECT ANSWER : OPTION B

CORRECT ANSWER : OPTION C

Source: Excerpt from The Hindu, written by Alok Deshpande (22/04/2020)

CORRECT ANSWER : OPTION D

(a) Both (A) and (R) are correct

[Excerpt from SCC Online Blog, May 19, 2020]

[Excerpt from Arnab Ranjan Goswami vs Union Of India on 19 May, 2020]

Common Intention and Similar Intention

CORRECT ANSWER : OPTION B

CORRECT ANSWER : OPTION D

(a) Act of the legislature enhancing the term of imprisonment.

CORRECT ANSWER : OPTION C

108. Which of the following strengthens the Author‘s argument?

114. Which of the following is true as per the passage above?

a) Only I and II.

Following is an array of questions to test your reasoning ability in different situations.

a) Whether negative advertisement strengthens democratic governance?

131. What is the Central Idea of the passage above?

Which of the following statements weakens the statement?

a) Only I, II, III

No. of persons affected by Japanese encephalitis (in thousands)

Ratio of males to females

Sr. No. Object Length Breadth Height

147.The area of the plot is

149.What will be the area of the triangle ABC?

150.What will be the perimeter of the triangle ABC?

6HFWLRQ 3DUW 0D[0DUNV

,*HQHUDO(QJOLVK $ 

D KDYH\RXWR E GLG\RXKDYHWR F PXVW\RX G \RXKDGWR

F DJULFXOWXUDOVXEVLGLHVSURYLGHG G UHPRYDO RI QRQWDULII EDUULHUV E\

 D UHQDLVVDQFH E UHQDLVDQFH F UHQDLVVHQFH G UHQDLVHQFH

 D PDODHVH E PHODL]H F PHODLVH G PDODLVH

 D LUHOHYDQW E LWUHOHYHQW F LUUHOHYDQW G LUUHOOHYDQW

 D VXUYLODQFH E VXUYHLOODQFH F VXUYHLODQFH G VXUYHLOOLDQFF

E JDLHWO\ F JDHLW\ G JDLWW\

D 0XWXDO)XQGV E 0RQH\0DUNHW F 6HFXULWLHV0DUNHW G %DQNLQJ

6HFWLRQ 3DUW 0D[0DUNV

,*HQHUDO(QJOLVK $

D KDYH\RXWR EGLG\RXKDYHWRFPXVW\RX G\RXKDGWR

FDJULFXOWXUDOVXEVLGLHVSURYLGHGG UHPRYDO RI QRQWDULII EDUULHUV E\

DUHQDLVVDQFH EUHQDLVDQFH FUHQDLVVHQFH GUHQDLVHQFH

DPDODHVH EPHODL]H FPHODLVH GPDODLVH

DLUHOHYDQW ELWUHOHYHQW FLUUHOHYDQW GLUUHOOHYDQW

DVXUYLODQFH EVXUYHLOODQFHFVXUYHLODQFH GVXUYHLOOLDQFF

EJDLHWO\ FJDHLW\ GJDLWW\

D 0XWXDO)XQGV E0RQH\0DUNHWF6HFXULWLHV0DUNHW G %DQNLQJ

DVWHSV EIDFH FVWULGH G

D$UDFQRSKRELD E$UDQFKRSKRELDF$URFKQRSKRELDG$UDFKQRSKRELD

D&LQDPRQ E&LQQDPRQ F&LQQDPDQ G&LQDPDQ

D$OFRKRO E$OFKRKRO F$OFKRKDO G$OFKRKHO

D%LRFO\PDWDORJ\E%LRFOLPDWDORJ\F+LRFOLPDWRORJ\G%LRFOLPDWHORJ\

DFKDSHO EFROOHJH FFRQYRFDWLRQKDOOGKRVWHO

D SUD\HU ESULHVWFULWXDOGFKXUFK

DE F G

D E F GQRQHRIWKHP

D -DSDQE3HUX F6RXWK.RUHD G9LHWQDP

D&KLQDE86$ F&DQDGD G,QGLD

D 6DMMDGDQDVKLQE,&KDGLP F0XWDZDOOLG0XMDZDU

D:URQJE:HDN F3RZHUOHVV G/LDELOLW\

D3XSE7LJUHVV F&XE G%DE\7LJHU

D$GYLVRUE+HOS F/HJDODLG G/DZ\HU

D$SSHOODQWE'HIHQGDQW F3ODLQW G6XLW

D+DPHHG$QVDWLE1DMPD+HSWXOODK F

DVKHHSEJRDO FVN\ GVWDU

[LVHTXDOWR

DE F G

D E F G

D 3UDLVHG E5HFLWHG F3URFODLPHG G5HPRQVWUDWHG

%XW ZLWK PDQ\ RXWVLGHUV

G $SSOLFDWLRQRIWKH$UPHG)RUFHV6SHFLDO3RZHUV$FWLQ0DQLSXU

7KLVVHFWLRQFRQVLVWVRIWHQSUREOHPVZLWKTXHVWLRQVLQWRWDO(DFKSUREOHPFRQVLVWV

7LPHSPWRSPKRXUV 0D[LPXP0DUNV

$ % & '

$VXPZDVGLYLGHGDPRQJ34 55JRWGRXEOHWKDQ3ZKRJRWGRXEOHWKDQ4,I

$ LLLLLL%LLYY&LLLLLLY6WDWHPHQWV 'LYYYL

$ LLLLYL%LLYY&LLLY6WDWHPHQWV 'LLYLY

$LLLYL %LLLLYLL &LLLYY 'LLLYYL