You are on page 1of 20

 '!

")
&RRSHUDWLYH'XQJHRQ '!

+DOOVRI$QDUFK\

UH O
WX YH
HQ /H
GY 
$ WK
$

MMM  H ; 7 J ?L;' E KDJ7?D! 7C;I 9 E C


  

 
 

 

1


  

6TXDUH )HHW

6HZHUV(QWUDQFH 3HWUD¶V3ULVRQ %DUUHQ¶V5RRP 7HPSOH(QWUDQFH


7KH7UDSSHG+DOOZD\ 'LQLQJ+DOO &KDPEHURI$VVHPEO\ $QDUFK\¶V4XDUWHUV
*XDUGV 6OHHSLQJ4XDUWHUV 7KH3UHDFKLQJ+DOO 6HFUHW5RRP
6KDQNOLQ¶V/DLU +DOORI-XGJPHQW
&RRSHUDWLYH'XQJHRQ
+DOOVRI$QDUFK\
7DEOHRI&RQWHQWV
(QFRXQWHU0DSRIWKH&RPSOH[
7DEOHRI&RQWHQWV
&UHGLWV)RUHZRUGDQG3ORW+RRNV
 6HZHU(QWUDQFH
 7KH7UDSSHG+DOOZD\
 *XDUGV
 3HWUD¶V3ULVRQ
 'LQLQJ+DOO
 6OHHSLQJ4XDUWHUV
 6KDQNOLQ¶V/DLU
 %DUUHQ¶V5RRP
 &KDPEHURI$VVHPEO\
 7KH3UHDFKLQJ+DOO
 +DOORI-XGJHPHQW
 7HPSOH(QWUDQFH
 %UROLQ¶V4XDUWHUV
 6HFUHW5RRP
2SHQ*DPH/LFHQVH

7KLVGRFXPHQWLVFRS\ULJKW0DUN$OH[DQGHU&ORYHURI&UHDWLYH0RXQWDLQ*DPHV
,WLVLQWHQGHGIRUSHUVRQDOXVHDQGPD\QRWEHUHGLVWULEXWHGRUUHSURGXFHG
ZLWKRXWH[SUHVVZULWWHQFRQVHQWRI&UHDWLYH0RXQWDLQ*DPHV
6RPHSRUWLRQVRIWKLVGRFXPHQWDUH2SHQ*DPH&RQWHQWDQGPD\EHXVHGLQ
DFFRUGDQFHZLWKWKHWHUPVRIWKH2SHQ*DPH/LFHQVH VHHOLFHQVHSDJH 
7KHHQFRXQWHUVDQGLOOXVWUDWLRQVLQWKLVVXSSOHPHQWDUHFRS\ULJKWRIWKHLQGLYLGXDO
'! FRQWULEXWRUV VHHFUHGLWVDQGOLFHQVHSDJHIRUPRUHGHWDLOV
3OHDVHYLVLWRUFRQWDFWZZZ&UHDWLYH0RXQWDLQ*DPHVFRPIRUPRUHLQIRUPDWLRQ
&RRSHUDWLYH'XQJHRQ+DOOVRI$QDUFK\
6LOYHU&RLQ*XLOGWRUHVW RU\RXKDYH\RXURZQUHD
&UHGLWV VRQVIRUZDQWLQJLWGHVWUR\HG ,WLVDWKRUQLQVRPH
RQH¶VVLGHDQGQHHGVWREHUHPRYHG<RXKDYHEHHQ
/HDG'HYHORSHU5HQp0RQJUDLQ QLSSLQJDWWKHHGJHVRIWKHJXLOGEXWQRZLVWKHWLPHWR
ULSRXWWKHKHDUW
(GLWLQJ0HUDN6SLHOPDQ
$QWKRQ\+HPDQ5HQp0RQJUDLQ0DUN&OR )RU $GYHQWXULQJ *URXSV  7KH %DURQ¶V GDXJKWHU LV
YHU &KULV6DO]HU PLVVLQJ DQG LW¶V \RXU MRE WR ¿QG KHU 0D\EH \RX RZH
KLPDIDYRUPD\EH\RXZDQWKLPWRRZH\RXRQHRU
&RYHU,OOXVWUDWLRQ6DUDK$6NLQQHU MXVW PD\EH \RX¶OO GR LW RXW RI WKH JRRGQHVV RI \RXU
KHDUWQDDD\RX¶UHLQWKLVIRUWKHUHZDUGDFRRO
JROGWREULQJKHUEDFNDOLYH:KDWFRXOGEHHDVLHUWKHQ
&DUWRJUDSK\$QGUHZ0&RQUDG
NQRFNLQJDURXQGDIHZWKLHYHVDQGWDNLQJWKHLUVWXII"
/D\RXWDQG'HVLJQ0DUN&ORYHU
)RU*RRG&KDUDFWHUV7KH%DURQ¶VGDXJKWHULVPLVV
LQJDQGLWVXSWR\RXWREULQJKHUKRPH6RPHRQHKDV
(QFRXQWHU&RQWULEXWRUV VROG RXW WKH FXOSULWV EXW WKH %DURQ¶V ERG\JXDUGV MXVW
$ODVWDLU%HOO0DUN&ORYHU DUHQ¶WWUDLQHGWRGHDOZLWKWKLVVRUWRIDIIDLU7KLVLVWKH
&RUH\/H0RLQH%HQ/HYLQ W\SH RI MRE IRU ZKLFK \RX DUH VXLWHG 7KH %DURQ LV D
'DYLG0DSOH/XFDV0DUWLQ IRUFHIRUJRRGDQREOHDQGKRQHVWPDQDQGKHQHHGV
5HQp0RQJUDLQ&KULV6DO]HU SHRSOHOLNH\RXWRVDYHKLVFKLOG
&KULV6FDWXUR
)RU *RRG &OHULFV'UXLGV DQG 3DODGLQV  <RX DZDNH

)RUHZRUG IURPDGUHDPIHHOLQJDORQH\RXUVZHDWVRDNHGOLQHQV
FKLOO\RXUVNLQ,WZDVWKHGUHDPDJDLQRIVPRNHULVLQJ
IURPDVHZHUJUDWHEXWKDQJLQJZLWKLQWKDWVPRNHZDV
 :HOFRPH WR WKH VHFRQG DGYHQWXUH PDGH
FRRSHUDWLYHO\ E\ PHPEHUV RI (1ZRUOG WKHHFKRRIDFKLOG¶VFU\+HUWHDUVVWLOOUXQGRZQ\RXU
ZZZHQZRUOGRUJ ,WZDVPDGHIRUDSDUW\RI IDFH <RX NQRZ VKH LV DIUDLG DORQH LQ WKH GDUNQHVV
7KH GUHDP GULYHV \RX WR VWRS ZKDWHYHU LV DERXW WR
FKDUDFWHUVRIOHYHO,PXVWWKDQNDOOFROODER
KDSSHQ
UDWRUV HVSHFLDOO\ WKH GHVLJQLQJ WHDP 7KHLU
XQUHPXQHUDWHG IDQWDVWLF HIIRUWV KDYH FRQ )RUDQ\UHOLJLRXVW\SHV<RXIHHOEHQHDWK\RXUIHHWWKH
WULEXWHG LQWR PDNLQJ WKLV DFKLHYHPHQW TXLWH FKXUQ RI VRPHWKLQJ GDUN DQG SRZHUIXO$ SODFH RQFH
HQMR\DEOHDQGUHZDUGLQJ WKRXJKWGHDGQRZULVLQJZLWKQHZOLIH$WHPSOHGHGL
 &RRSHUDWLYH 'XQJHRQV DUH D UHVSRQVH WR FDWHGWRDJRGZKRRSSRVHV\RXUV7KHWLPHKDVFRPH
WKH ODFN RI IUHH DGYHQWXUHV DYDLODEOH RQ WKH WRFDOOXSRQIULHQGVDQGFRPUDGHVWRULG\RXUVHOIRIWKLV
,QWHUQHW 7KHUH DUH D IHZ EXW WKH\ YHU\ VHO DIIURQWWR\RXUEHOLHIV
GRP¿OODJDPHPDVWHU¶VLPPHGLDWHQHHGV ,
NQRZ,¶YHORRNHG +RSHIXOO\WKLVRQHZLOO¿OO )RU PRVW W\SHV  <RX KDYH FRPH KRPH WR ¿QG \RXU
\RXUFDPSDLJQ¶VQHHGV,KRSH\RXZLOOKDYH VLVWHU KDV EHHQ WDNHQ IURP \RXU KRPH <RXU SDUHQWV
DVPXFKIXQUXQQLQJLWDV, ZH KDGPDNLQJLW VZHDU LW ZDV D GDUNO\ GUHVVHG KDOÀLQJ ZKR WRRN KHU
OHDYLQJEHKLQGDVLOYHUFRLQ7KHFRLQLVNQRZQWREH
+DSS\*DPLQJ5HQp³7UDLQ]´0RQJUDLQ WKHFDOOLQJFDUGRIDORFDOWKLHYHV¶JXLOG:K\GLGWKH\
WDNH\RXUVLVWHUDQGKRZGR\RXJHWKHUEDFNDOLYH"

3ORW+RRNV )RUWKRVHZKRKDYHYLVLRQV,QDGDUNGXQJHRQFHOOKH
WRLOVDVPDOOER\RQHGD\GHVWLQHGWRVDYHWKHZRUOG
 7KLVGXQJHRQLVSUHVHQWHGDVDWKLHYHV¶JXLOGFRQ WKDW LV LI KH OLYHV WR PDQKRRG 7UDSSHG DPRQJ WKH
WUROOHG E\ /RUG $QDUFK\ D VDGLVWLF +DOÀLQJ 9DPSLUH WKLHYHVRIWKHFLW\\RXVHHKLPLQ\RXUPLQG¶VH\HDQG
/RUG $QDUFK\ KDV ORIWLHU PRUH VLQLVWHU JRDOV WKDQ IHHOWKHFRXUVHODLGRXWEHIRUH\RXOHDGLQJ\RXWKURXJK
ORUGLQJRYHUDWKLHYHV¶JXLOG7KLVLVPHUHO\DVWHSSLQJ GDQNGDUNQHVVWRKLVVLGH
VWRQHIRUKLP,WLVODLGRXWDVDEDVLFJXLOGZLWKVOHHSLQJ
TXDUWHUVGLQLQJURRPVDQGWUDLQLQJDUHDV5RRPV )RUWKRVHWKDWZHDUWKHLUKHDUWRQWKHLUVOHHYH$PLG
FRQVLVWRIWKHVHZHUHQWUDQFH5RRPVDUHOLYLQJDQG GOHDJHG ZRPDQ DSSURDFKHV \RX LQ KHU H\HV D ORRN
GLQLQJTXDUWHUV5RRPVDUHDGPLQLVWUDWLYHPHHWLQJ RIIHUDOGHVSHUDWLRQ6KHEHJVIRU\RXWR¿QGDQGVDYH
DUHDV DQG 5RRPV  DUH WKH ORVW WHPSOH 7KH KHUVRQ$VWHDUVVWUHDPGRZQKHUIDFHVKHRIIHUVKHU
*XLOGZDVRQFHDKLGGHQFXOWWHPSOHDQGLWVWLOOKRXVHV ODVWSLHFHVRIVLOYHUIRU\RXWREULQJKRPHKHUFKLOG6KH
VHYHUDO ZRUVKLS DUHDV DQG WKH SHRSOH ZKR PDLQWDLQ IHHOVLQKHUKHDUWWKDWKHLVVWLOODOLYH+HKDVEHHQJRQH
WKHP ,QWHUDFWLRQ EHWZHHQ URRPV ZLOO PDLQO\ EH WKH PRQWKVEXWVKHVWLOOVHHVKLPLQKHUGUHDPV
UHVSRQVH RI JXLOG PHPEHUV KHDULQJ VRXQGV RI EDWWOH
0RVW LQYROYLQJ WKH OLWWOH JLUO FDQ VXEVWLWXWH WKH \RXQJ
)RU(YLO&KDUDFWHUV<RXKDYHEHHQKLUHGWRSXWWKH ER\PLVVLQJIRUPRQWKV

&UHGLWV)RUHZRUGDQG3ORW+RRNV 
&RRSHUDWLYH'XQJHRQ+DOOVRI$QDUFK\
5DW GLUH   6PDOO DQLPDO &5  +' G KS
6HZHU(QWUDQFH ,QLW6SGIWFOLPEIW$& VL]H
'H[QDWXUDO WRXFKÀDWIRRWHG%DVH$WN
5PFRQWULEXWHGE\5HQp0RQJUDLQ *US$WN%LWHPHOHH GSOXVGLVHDVH )XOO$WN
VDPH 6SDFH5HDFKIWIW6$'LVHDVH64/RZ
7KHVHZHUZDOOVDUHEODFNDQGJUHDV\ZLWK¿OWKFXUY OLJKWYLVLRQVFHQW$/ $OZD\V QHXWUDO69)RUW5HI
LQJLQZDUGVDVWKH\UHDFKWKHFHLOLQJZKLFKLVIHHW :LOO6WU'H[&RQ,QW:LV&KD
KLJK7KHVHZHUZDWHUKDVDVOLJKWZHVWERXQGFXUUHQW 
7KHUHDUHVWRQHOHGJHVIHHWZLGHRQHDFKVLGHRIWKH 6NLOOV DQG )HDWV &OLPE  +LGH  /LVWHQ 
WXQQHORQZKLFK\RXDUHFXUUHQWO\ZDONLQJ7KHOHGJHV 0RYH 6LOHQWO\  6SRW  6ZLP  $OHUWQHVV
DUH MXVW D IHZ LQFKHV DERYH VHZDJH OHYHO $ OLQJHU :HDSRQ )LQHVVH 'LUH UDWV KDYH D  UDFLDO ERQXV
LQJGDPSURWWHQVPHOO¿OOVWKHDLU)URPZKHQFH\RX RQ 6ZLP FKHFNV 'LUH UDWV KDYH D  UDFLDO ERQXV
FDPH\RXFDQKHDUWKHVTXHDNLQJRIPDQ\UDWV RQ &OLPE FKHFNV DQG FDQ DOZD\V FKRRVH WR WDNH 
RQ &OLPE FKHFNV HYHQ LI UXVKHG RU WKUHDWHQHG 'LUH
)HDWXUHV,IDOLJKWVRXUFH VXFKDVDWRUFK LVRQKDQG UDWV XVH WKHLU 'H[WHULW\ PRGL¿HU IRU &OLPE DQG 6ZLP
LWLVSRVVLEOHWRVHHDVNHOHWRQZHDULQJDEUHDVWSODWHLQ FKHFNV
WKHVHZDJH,WLVYHU\KDUGWRQRWLFHZLWKRXWJRLQJLQWR 'LVHDVH ([ )LOWK)HYHUIURPELWH)RUWLWXGH'&
WKH PXUN\ VHZDJH 6SRW FKHFN '&   ,I VRPHRQH LQFXEDWLRQSHULRGGGD\VGDPDJHG'H[WHULW\DQG
GRHVJRLQWKHVHZDJHWKHQLWLVHDVLHUWR¿QG 6HDUFK G&RQVWLWXWLRQ7KHVDYH'&LV&RQVWLWXWLRQEDVHG
FKHFN'& 7KHVNHOHWRQEDUHO\KDVDQ\UDJVOHIWRQ
LW 7KH EUHDVWSODWH LV PDJLFDO  EUHDVWSODWH RI OLJKW 1RWHV7KHVHZDJHLVYHU\¿OWK\,ID3&VSHQGVPRUH
IRUWL¿FDWLRQ  WKDQQRQFRQVHFXWLYHURXQGVLQLWKHLVVXEMHFWHGWR
)LOWK)HYHUGLVHDVH)RUWLWXGH'&LQFXEDWLRQSHULRG
(QFRXQWHU,IWKHFKDUDFWHUVVWD\KHUHIRUPRUHWKDQ GGD\VGDPDJHG'H[WHULW\DQGG&RQVWLWXWLRQ$OO
URXQGV VHFRQGV RUWUDYHOHDVWWKH\DUHDWWDFNHG RSHQVHZDJH 5P LQWKLVGXQJHRQKDVWKLVGDQJHU
E\GLUHUDWV

6HZHU(QWUDQFH

7KH7UDSSHG
SS 8SDKHDGLV KHLJKWHQHGPDMRULPDJHRIDKHDY\LURQ
GRRU '&:LOOVDYHWRGLVEHOLHILILQWHUDFWHGZLWKVHH
+DOOZD\ EHORZIRUIXUWKHUGHWDLOV 

5PFRQWULEXWHGE\/XFDV0DUWLQ 7KHWRUFKHVVWDUWIHHWIURPWKHGRRUZLWKRQHHY
HU\IHHWRQHDFKVLGH
7KHVHZDJHLQWKLVDUHDLVWKLFNHUDQGKDVVOXGJHÀRDW
LQJ RQ WRS 7KHUH DUH VRPH WRUFKHV KDQJLQJ RQ WKH 2LO 5DLQ 7UDS ,I DQ\ SHUVRQ HQWHULQJ WKLV URRP OLIWV
ZDOOVEXWWKH\DUHQRWOLW$VPDOOLQVFULSWLRQLVFDUYHG PRYHVRUOLJKWVDWRUFKDOLJKWUDLQEHJLQVWRIDOOLQWKH
RQ WKH ZDOO ZKLFK VD\V ³2QO\ RQH VFKRRO ZLOO OHW \RX DUHD,W¶VQRWVHZDJHWKDW¶VIDOOLQJIURPWKHFHLOLQJLW¶V
LQ´7KHUHDUHDOVRWZRKXPDQRLGVNXOOVLQRSSRVLWHUH YHU\ ÀDPPDEOH RLO IROORZHG E\ D WLQGHUWZLJ PHFKD
FHVVHVLQWKHZDOOVIDFLQJHDFKRWKHU$WWKHHQGRIWKH QLVP WKDW OLJKWV LW WKH IROORZLQJ URXQG7UHDW WKLV DV D
KDOOEHVLGHDQLURQGRRUZLWKQRKDQGOHVRUNH\KROHV QRQPDJLFDO ¿UHEDOO O WUDS G SRLQWV RI ¿UH GDPDJH
WKHUHDUHVHYHUDOSXVKEXWWRQVZLWKGUDZLQJVRQWKHP '&5HÀH[VDYHIRUKDOIGDPDJH7KHWUDSGRHVQRW
6HZDJHÀRZVWKURXJKDYLVLEOHJUDWHEHORZWKHGRRU UHVHWLWVHOIEXWDIWHUWKHLQLWLDOEODVWWKHRLOFRQWLQXHVWR

 6HZHU(QWUDQFH7KH7UDSSHG+DOOZD\
&RRSHUDWLYH'XQJHRQ+DOOVRI$QDUFK\

7KH7UDSSHG+DOOZD\

GULSIRUWZRURXQGVFRDWLQJWKHFKDUDFWHUVDQGGRLQJ 7KH DQVZHU WR WKH FDUYHG ULGGOH LV ³7KH 6FKRRO RI
FRQWLQXRXV GDPDJH G SRLQWV RI ¿UH GDPDJH SHU ,OOXVLRQ´KRZHYHUWKHSODWHVPXVWQRWEHSUHVVHGWKH
URXQG DQGOLNHO\WREXUVWLQWRÀDPHXQOHVVFOHDQHGRII GRRULWVHOILVDQLOOXVLRQ,IDQ\RQHSUHVVHVDEXWWRQD
5HPRYLQJWKHRLOUHTXLUHVDOFRKRORIVRPHW\SHRUWKH VKRFNLQJJUDVSWUDSGHDOVGSRLQWVRIHOHFWULFLW\GDP
UHPRYDORIWKHRXWHUOD\HURIFORWKLQJ 6HDUFK'& DJHWRKLPZLWKQRVDYHDOORZHG &5PDJLFWRXFK
'LVDEOH'HYLFH'& ,IGLVDEOHGLWDOORZVVRPHRQHWR WULJJHU VKRFNLQJ JUDVS FDVWHU OHYHO QG 6HDUFK '&
OLIWOLJKWDQGRUPRYHDWRUFK 8QOLNHDUHJXODU¿UHEDOO 'LVDEOH'HYLFH'& 
WKHUHLVDULVNRIFDWFKLQJ¿UH 5HÀH[VDYH'&HYHU\
URXQGRUGSRLQWVRI¿UHGDPDJHSHUURXQG&5  1RWHV $Q\RQH ZKR EHORQJV WR WKH *XLOG LV IDPLOLDU
ZLWKDOOWKHWUDSVDQGKRZWRE\SDVVWKHP:KHQHYHU
7KH WKLFNHU VHZDJH LV FDXVHG E\ RLO UHVLGXH 7KH DQ\RQH LV ³LQYLWHG LQWR WKH KHDGTXDUWHUV´ WKH\ DUH
¿OWKFRYHUVWKHRLO¶VSDUWLFXODUVPHOOXQOHVVD3&KDV EOLQGIROGHGDQGJXLGHGWKURXJKWKHGDQJHUV
WKH6FHQWIHDWLWZRQ¶WEHUHFRJQL]HGE\VPHOODORQH,I
DQ\RQH JHWV D ¿UH QHDU WKH VHZDJH WKH ZKROH URRP
FDWFKHV RQ ¿UH DQG DQ\RQH VWDQGLQJ LQ WKH VHZDJH
ZLWKLQIHHWWRWKLVVLGHRIWKH³GRRU´ PXVWPDNHD
5HÀH[VDYH '& WRDYRLGFDWFKLQJRQ¿UHDVZHOO
*XDUGV
5PFRQWULEXWHGE\'DYLG0DSOH
,IDQ\RQHWULHVWRSXWRXWWKHÀDPHVIURPWKH2LO5DLQ
7UDSE\XVLQJWKH³RLOHGVHZDJH´WKH\VXIIHUDQDGGL 7KHVHZHUWXQQHOVIRUPD7MXQFWLRQDWWKLVSRLQWWKH
WLRQDOGSRLQWVRI¿UHGDPDJHDQGIDLODWWKHLUDWWHPSW EUDFNLVKVHZDJHÀRZVLQIURPWKHQRUWKHUQDQGHDVW
WRSXWRXWWKH¿UH HUQWXQQHOVDQGRXWWRWKHVRXWK7KLFNSODQNVRIZRRG
KDYHEHHQWKURZQDFURVVWKHJDSVWRPDNHLWHDVLHUWR
:KHQSDVVLQJE\RQHRIWKHVNXOOVDVLOYHUFRLQPXVW FURVVIURPRQHVLGHRIWKHVHZHUWXQQHOWRWKHRWKHU
EHSXWLQWRLWVPRXWK RUDQ\WKLQJHOVHRIHTXDOZHLJKW 
RWKHUZLVHD%XUQW2WKXU9DSRU7UDSDFWLYDWHVLWVHOIDV )HDWXUHV-XVW¿IWHHQIHHWVRXWKIURPWKLVMXQFWLRQWKH
VRRQDVWKH¿UVWSHUVRQFURVVHVWKHJD]HRIWKHVNXOOV VHZHUWXQQHOGURSVUDSLGO\GRZQDVWHHSVOLSZD\DVWKH
&5DOOWDUJHWVLQDIWUDGLXVRIHDFKVNXOO3RLVRQ ÀRZ HIÀXHQW MRLQV WKH FLW\¶V ULYHU 7KH \HDUV RI PROG
)RUWLWXGH VDYH '&  RQVHW GHOD\  URXQGV LQLWLDO JUHDVHDQGVOLPHKDYHPDGHWKLVDWUHDFKHURXVDUHD
GDPDJH  SRLQW SHUPDQHQW &RQVWLWXWLRQ VHFRQGDU\ DQ\RQHKHDGLQJVRXWKDORQJWKHHDVWHUQZDOOFDQRQO\
GDPDJH G SRLQWV WHPSRUDU\ &RQVWLWXWLRQ 6HDUFK PRYHDWKDOIVSHHGDQGPXVWPDNHD%DODQFHFKHFN
'&'LVDEOH'HYLFH'& $IWHUDURXQGWKHVNXOO '& WRDYRLGVOLGLQJGRZQWKHVOLSZD\7KHZHVW
ZLOOWLOWWKHFRLQEDFNLQLWVPRXWKWRDKROGLQJDUHDGLV HUQZDOOKDVDQHDVLHUURXWHWRWKHULYHUDVFRQFHDOHG
DEOLQJWKH9DSRU7UDSIRUPLQXWH7KLVDUHDFDQEH 6SRWFKHFN'& QH[WWRWKHZDOOLVDNQRWWHGURSH
IRXQG 6HDUFKFKHFN'& DQGRSHQHGZLWKD'LV ZKLFKWKHWKLHYHVXVHWRJDLQHDV\DFFHVVWRWKHULYHU
DEOH'HYLFHFKHFN '& 7KHUHDUHVLOYHUFRLQV DQGKDXOVPXJJOHGJRRGVXSIURPERDWVRQWKHULYHU
LQWKHFDYLW\ &OLPELQJGRZQWRWKHULYHUDFFHVVXVLQJWKHURSHLVDQ
HDV\WDVN &OLPEFKHFN'& EXWQRWWREHWDNHQIRU
7KHGUDZLQJVRQWKHIDFHVRIWKHEXWWRQVHDFKUHS JUDQWHG$Q\RQH IDLOLQJ WKH %DODQFH RU &OLPE FKHFNV
UHVHQWDVFKRRORIPDJLFHDVLO\LGHQWL¿HGZLWKD.QRZO IDOOVIURPWKHZDONZD\VLQWRWKHPDLQVHZHUÀRZDQGLV
HGJH DUFDQD FKHFN '&  UDSLGO\VZHSWDZD\DQGGXPSHGLQWRWKHSROOXWHGULYHU

*XDUGV 
&RRSHUDWLYH'XQJHRQ+DOOVRI$QDUFK\
DQ\RQH DSSURDFKLQJ XQOHVV WKH\
*XDUGV FDUU\DOLJKWVRXUFH+RZHYHULIWKH
2LO5DLQ7UDSLQ5RRPLVDFWLYDWHG
WKHQWKHEOD]HOLJKWLQJXSWKHVHZHU
WXQQHO DXWRPDWLFDOO\ DOHUWV WKHP WR
VRPHRQHDSSURDFKLQJ,IWKHWUDSLV
DYRLGHG WKH JXLOG URJXHV ZURQJO\
DVVXPH WKDW WKH SHRSOH DSSURDFK
LQJDUHPHPEHUVRIWKHJXLOGDVWKH
RWKHU WUDSV¶ HIIHFWV DUH QRW YLVLEOH
IURPWKLVSRVLWLRQ(YHQLIWKH\VSRW
VRPHRQHDSSURDFKLQJWKH\GRQRW
FKDOOHQJH WKHP IRU WKH SDVVZRUG
XQWLO WKH\ JHW ZLWKLQ  IHHW RI WKH
MXQFWLRQ7KHFRUUHFWSDVVZRUGFXU
UHQWO\ LV ³&RG /LYHU 2LO´ EXW LW JHWV
FKDQJHGHDFKZHHN

,QWHUDFWLRQ,IWKHJXLOGURJXHVDUH
DOHUWHG HLWKHU E\ WKH SDVVZRUG QRW
EHLQJJLYHQRUWKH2LO5DLQWUDSEH
LQJVHWRIIWZRUHPDLQDWWKHLUSRVW
ZKLOHRQHUXQVQRUWKWRWKHJXLOGWR
JHWDVVLVWDQFHDQGZDUQWKHUHVWRI
WKH JXLOG PHPEHUV 7KH RWKHUV DW
WHPSWWRGHOD\WKHLQWUXGHUVE\¿ULQJ
WKHLUVKRUWERZVXVLQJWKHHGJHRI
WKHVHZHUZDOODVFRYHU,IDQ\RQH
DWWHPSWV WR FORVH WR PHOHH WKH\
EDFNRIIDFURVVWRWKHZHVWHUQVLGH
RI WKH VHZHUV NLFNLQJ WKH ZRRGHQ
SODQNV LQWR WKH ZDWHU 7KH\ WKHQ
KHDGVRXWKWRWKHULYHUDWWHPSWLQJ
(QFRXQWHU (/   7KHUH DUH  JXLOG URJXHV VHH WRGUDZWKHDWWDFNHUVDZD\IURPJXLOGDQGDOORZLQJDQ\
DSSHQGL[  WKDW DUH SRVLWLRQHG RQ VHQWU\ GXW\ KHUH VXSSRUW FRPLQJ IURP WKH QRUWK WR ÀDQN WKHP ,I WKH\
7KH\ KDYH D KRRGHG ODQWHUQ SRVLWLRQHG VOLJKWO\ ORRNVLJQL¿FDQWO\RXWQXPEHUHGRQHGLHVRUHLWKHUVXI I
LQWR WKH QRUWKHUQ SDVVDJH VR LWV OLJKW LVQ¶W YLVLEOH IHUVKDOIWKHLUKLWSRLQWVLQGDPDJHWKH\GLYHLQWRWKH
WR SHRSOH DSSURDFKLQJ IURP WKH ZHVW 7KH\ URJXHV VHZDJHDQGVZLPIRULW
WDNH WKLV GXW\ YHU\ OLJKWO\ VLQFH WKH\ EHOLHYH QR RQH
ZRXOG EH IRROLVK HQRXJK WR FKDOOHQJH WKH *XLOG 1RWHV7KHZDWHULVYHU\¿OWK\DQGGLVHDVHG VHHURRP
7KH\DUHEXV\SOD\LQJFDUGVDQGDUHXQOLNHO\WRVSRW RQH 

0HGXVD  0HGLXPPRQVWURXVKXPDQRLG&5+'
3HWUD¶V3ULVRQ G KS ,QLW  6SG  IW$&   'H[ 
QDWXUDO WRXFKÀDWIRRWHG%DVH$WN*US
5PFRQWULEXWHGE\0DUN&ORYHU $WN6KRUWERZUDQJHG G[ RUGDJJHUPHOHH
G RUVQDNHVPHOHH GSOXVSRLVRQ )XOO
7KLV DUHD OLNH PXFK RI WKH VHZHU VWLQNV RI ZDVWH $WN6KRUWERZUDQJHG G[ RUGDJJHU
ZDVKHGGRZQIURPDERYH$ORQJWKHZHVWHUQZDOOLV PHOHH G  DQG VQDNHV  PHOHH G SOXV
DVWDWXHWKDWDSSHDUVWREHDGZDUI,WVIDFHWZLVWHG SRLVRQ  6SDFH5HDFK  IW IW 6$ 3HWULI\LQJ JD]H
LQIHDULVWXUQHGVRXWK$QH[WLQJXLVKHGWRUFKLVLQD SRLVRQ64'DUNYLVLRQIW$//(69)RUW5HI
VFRQFHRQWKHZHVWHUQZDOO$ERXWIHHWEH\RQGWKDW  :LOO  6WU  'H[  &RQ  ,QW  :LV 
LVDSRUWFXOOLVVHDOLQJWKHVHZHUVIURPWUHVSDVVHUVDQG &KD
LPSHGLQJDQ\WUDYHOIXUWKHUQRUWK 6NLOOVDQG)HDWV%OXII'LSORPDF\'LVJXLVH
 DFWLQJ ,QWLPLGDWH0RYH6LOHQWO\6SRW
7KH HDVWHUQ VWRQH VHFUHW GRRU LV FORVHG 6HDUFK 3RLQW%ODQN6KRW3UHFLVH6KRW:HDSRQ)LQHVVH
FKHFN'&WRORFDWH6HDUFKFKHFN'&WRORFDWH *D]H 6X 7XUQWRVWRQHSHUPDQHQWO\IWUDQJH
WULJJHU WKH WRUFK  6WUHQJWK '&  +DUGQHVV  KS )RUWLWXGHVDYH'&QHJDWHV7KHVDYH'&LV&KD
  ULVPDEDVHG
3RLVRQ ([  ,QMXU\ )RUWLWXGH VDYH '&  LQL
+HDY\3RUWFXOOLV0DGHRIWZRLQFKLURQEDUVORFNHG WLDO GDPDJH G 6WUHQJWK VHFRQGDU\ GDPDJH G
LQWRSRVLWLRQ %UHDN%HQG'&+DUGQHVVKS 6WUHQJWK7KHVDYH'&LV&RQVWLWXWLRQEDVHG
 LQVHWORFNQHDUÀRRU 2SHQ/RFNFKHFN'& 

 3HWUD¶V3ULVRQ
&RRSHUDWLYH'XQJHRQ+DOOVRI$QDUFK\
)HDWXUHV,QFOXGHWKHIROORZLQJ LQWKHQLFKHDWORFDWLRQ³(´FDQEHUHPRYHG 6WUHQJWK
FKHFN '&   $GGLWLRQDOO\ WKH GZDUI GURSSHG KHU
$  $ YHU\ UHFHQW YLFWLP RI 3HWUD¶V JD]H VWLOO VWDQGV PDVWHUZRUNZHDSRQ '0¶VFKRLFH LQWRWKHPXUN\VHZ
KHUH7KLVGZDUIDGYHQWXUHU 3HEEOHV6ODJVLIWHU1HX DJHMXVWEHIRUHEHLQJWXUQHGWRVWRQH,WVWLOOOLHVWKHUH
WUDO )HPDOH )LJKWHU   DQG RQH RWKHU ³IULHQG´ FDPH XQFROOHFWHGE\KHUFRPSDQLRQZKRVXFFHVVIXOO\VDYHG
GRZQWRVHHNWKHLUIRUWXQH$IWHUWKHGZDUIZDVWXUQHG DJDLQVW WKH JD]H DQG ÀHG DIWHU VHHLQJ WKH IDWH RI KLV
WRVWRQHKHUIULHQGÀHGOHDYLQJWKHVWRQHORYLQJGZDUI SDUWQHU,IWKHSDUW\SRVVHVVHVVRPHPHDQVRIUHOHDV
WRDQLURQLFIDWH LQJWKHGZDUIIURPKHUSHWUL¿HGVWDWHVKHJLYHVWKHP
DJSJHPVKHKDVLQKHUEHOWSRXFKDVDUHZDUG
%  $Q H[WLQJXLVKHG WRUFK DERXW ¿YH IHHW DERYH WKH $VIXUWKHUUHZDUGVKHRIIHUVDQRWKHUWZRJHPV JS
ÀRRU LVLQDVFRQFHRQWKHZDOODQGDFWVDVWKHPHFKD HDFK LIWKHSDUW\ZLOO PHHWKHUODWHUDWDORFDOWDYHUQ
QLVPWRRSHQWKHVHFUHWGRRU 6HDUFKFKHFN'& ,I ZKHUHVKHKDVDURRP,IWKHSDUW\GLGQRWUHFRYHUKHU
VRPHRQHSXOOVWKHOHYHUZKLOHVWDQGLQJRQWKHSUHVVXUH ZHDSRQRUDUHXQZLOOLQJWRUHWXUQLWVKHGRHVQRWRIIHU
SODWH PDUNHGE\³%´6SRWFKHFN'&EHIRUHLWVKLIWV WKHRWKHUJHPV DVVKHQHHGVWRUHSODFHLWWREHHI I
6SRW FKHFN '&  DV LW VKLIWV 'LVDEOH 'HYLFH FKHFN IHFWLYHLQKHUSURIHVVLRQ 8QGHUQRFLUFXPVWDQFHVZLOO
'&   UDWKHU WKDQ RSHQLQJ WKH
GRRULWLQVWHDGWULJJHUVWKHRSHQLQJ
RIDVHFUHWSDQHOORFDWHGLQWKHRS
SRVLWHZDOOIHHWIXUWKHUGRZQWKH
KDOOZD\ ORFDWLRQ³(´ 

& $ KHDY\ SRUWFXOOLV ZLWK DQ DG


GLWLRQDOSRUWFXOOLVWZHQW\IHHWIXUWKHU '
GRZQWKHSDVVDJH RIIRIWKHPDS 
7KLV PDNHV XS WKH ERXQGDULHV RI
3HWUD¶V3ULVRQ

'  +DOI D GR]HQ RI KHU VWRQH YLF


WLPV VKDUH 3HWUD¶V SULVRQ 6RPH
KDYH EHHQ ³JLYHQ´ WR KHU E\ WKH ( &
JXLOG WKH\ ZHUH PHPEHUV QR ORQ
JHU LQ JRRG VWDQGLQJ  2WKHUV DUH
YLFWLPVVKHPDQDJHGWRFRD[GRZQ
WRWKHEDUVRIKHUSULVRQ RUFDXJKW
ZKHQ WKH\ YHQWXUHG WRR FORVH RQ
WKHLURZQ 2QFHLQUHDFKWKH\ZHUH
UHGXFHG LQ VWUHQJWK E\ KHU SRLVRQ
DQGGUDJJHGWKURXJKWKHEDUVWREH
FRQVXPHGODWHU6RPHZHUHXQZLW
WLQJO\WXUQHGWRVWRQHSULRUWREHLQJ
GHYRXUHG6KHFDQHDVLO\XVHWKHVH
VWRQH VWDWXHV WR JDLQ IXOO FRYHU RU
FRQFHDOPHQW DQG DYRLG UDQJHG DW
WDFNVIURPRXWVLGHWKHEDUV

( $Q HYHUEXUQLQJWRUFKUHVLGHVLQ
DVHFUHWQLFKHLQWKHZDOOEHKLQGD
VOLGLQJ SDQHO ORFDWHG KHUH 6HDUFK
'&   7KH DUF RQ WKH PDS LV
PHDQW WR VKRZ WKH QHDU UDQJH RI $ %
WKH HYHUEXUQLQJWRUFK¶VOLJKWUDGLXV
V
7KRVH ZKR PLJKW QRW KDYH EHHQ
DEOH WR VHH 3HWUD LQ WKH GDUNQHVV
ZLOO GH¿QLWHO\ EH DEOH WR FDWFK KHU
JD]HRQFHWKHHYHUEXUQLQJWRUFKLV
XQFRYHUHG DQG VKH FRPHV RXW RI
KLGLQJ6KHXVXDOO\UHPDLQVKLGGHQ
DPRQJWKHVWDWXHVXQWLOWKHWRUFKLV
UHYHDOHG VR DV WR JDLQ IXOO DGYDQ
WDJH RI KHU JD]H DWWDFN RQ XQVXV
SHFWLQJDGYHQWXULQJSDUWLHV

2WKHU )HDWXUHV 3RWHQWLDOO\ WKH 3HWUD¶V3ULVRQ


HYHUEXUQLQJ WRUFK JS  KLGGHQ

3HWUD¶V3ULVRQ 
&RRSHUDWLYH'XQJHRQ+DOOVRI$QDUFK\
VKH DJUHH WR FRQWLQXH ZLWK WKH SDUW\ KDYLQJ KDG KHU VKRUWO\ DIWHU EHLQJ RYHUWKURZQ VRPHRQH QDPHG /RUG
¿OORIDGYHQWXULQJIRUWKHWLPHEHLQJ&KDUPLQJKHULV $QDUFK\WRRNRYHUWKHJXLOG6KHRZHVQRRQHOR\DOW\
SRVVLEOHEXWVKHLVVWLOOLQVXFKVKRFNDQGIHDUIURPKHU
H[SHULHQFHWKDWWKHVDYH'&DJDLQVWFKDUPLQJHIIHFWV
VKRXOGEHWUHDWHGDVDWRUHVLVW 'LQLQJ+DOO
1RWHV7KHZDWHULVYHU\¿OWK\DQGGLVHDVHG VHHURRP 5PFRQWULEXWHGE\&KULV6FDWXUR
RQH  7KLV IRRW E\ IRRW URRP LV WKH GLQLQJ KDOO IRU
WKHJXLOG(LJKWIRRWVTXDUHWDEOHV¿OOWKHURRPHDFK
,QWHUDFWLRQ0DQ\\HDUVDJRWKHJXLOGZDVUXQE\D KDYLQJFKDLUV7KHUHLVDODUJHXQLGHQWL¿DEOHSLHFHRI
SRZHUIXO HYLO PHGXVD QDPHG 3HWUD 'LVSOHDVLQJ KHU IXUQLWXUHLQWKHVRXWKHDVWFRUQHUDQGDEDUUHORIDOHLQ
ZDVXQZLVHDQGVKHRIWHQUHZDUGHGWKHIDLOXUHVRIKHU WKHVRXWKZHVWFRUQHU7KHFHLOLQJDSSHDUVWREHPDJL
PLQLRQV ZLWK GHDWK RU SHWUL¿FDWLRQ 6KH ZDV QRW YHU\ FDOO\OLWSURYLGLQJLOOXPLQDWLRQIRUWKHZKROHURRP%OXH
SRSXODUDPRQJWKHJXLOGPHPEHUVDQGZKHQWKH\KDG FXUWDLQVKDQJFRYHULQJWZRH[LWVRQHRQWKHVRXWKHUQ
WKHFKDQFHWRRYHUWKURZKHUWKH\GLGVRLPSULVRQLQJ ZDOOWKHRWKHURQWKHHDVWHUQZDOO
KHUZLWKRXWKHUZHDSRQVEHKLQGWKHSRUWFXOOLVQRUWKRI
WKHJXLOGHQWUDQFH,QWKLVZD\WKH\FDQVWLOOXWLOL]HKHU 7KH QRUWKHUQ VLPSOH ZRRGHQ GRXEOH GRRU LV XQ
DELOLWLHV WR KHOS JXDUG WKHLU VHFUHW HQWUDQFH 6KH ZLOO ORFNHG 6WUHQJWK'&+DUGQHVVKS $/LVWHQ
EHWUD\WKHPIRUKHUIUHHGRP6KHFDQGHVFULEHWKHOD\ &KHFN '&   UHYHDOV VRPH PRYHPHQW EHKLQG WKH
RXWRIWKHJXLOG URRPV DQGJLYHDJXHVVRQWKH GRRU  DQRWKHU /LVWHQ FKHFN '&   UHYHDOV D FRQ
QXPEHU RI PHPEHUV SUHVHQW   6KH NQRZV WKDW YHUVDWLRQLQDWRQJXHRWKHUWKDQ&RPPRQ 'UDFRQLF 
7KHFRQYHUVDWLRQLVHQWDLOVJHQHUDO
JURXVLQJ DERXW FOHDQLQJ XS DIWHU
VXFKVOREV

(QFRXQWHU (/ 7KHQRLVHKHDUG


IURPEHKLQGWKHGRRULVWZRNREROGV
VZHHSLQJXSDIWHUWKHODVWPHDO

,I WKH SDUW\ HQWHUV DJJUHVVLYHO\


7KH NREROGV WU\ WR DSSHDU KDUP
OHVVFOXWFKLQJHDFKRWKHUDQGEHJ
JLQJ WR QRW EH KXUW LQ 'UDFRQLF 
7KH\PDNHD%OXIIFKHFN 
ZLWK D  FLUFXPVWDQFH ERQXV
VLQFH WKH\ DUH XVHG WR GRLQJ WKLV 
WRDSSHDUVFDUHGRXWRIWKHLUKRUQV
,IDWWDFNHGWKH\GHIHQGWKHPVHOYHV
ZLWK WKHLU EURRPVWLFNV DQG UHWUHDW
RXWWKHQRUWKHUQGRRUDVTXLFNO\DV
SRVVLEOH

,IWKHSDUW\HQWHUVOLNHWKH\EHORQJ
WR WKH JXLOG 7KH NREROGV LJQRUH
WKHP 7KH\ ORRN XS WR VHH ZKR LV
FRPLQJ LQ DQG WKHQ FRQWLQXH ZLWK
WKHLUZRUN,IDVNHGTXHVWLRQVWKH\
UHSO\WUXWKIXOO\EXWGRQ¶WNQRZPXFK
DERXW WKH FRPSOH[ 7KH\ GR NQRZ
WKDWWKHUDWEDVWDUGRIDZL]DUGWKDW
FDSWXUHGWKHPLVLQURRPVHYHQDQG
/RUG³)DQJ´$QDUFK\UXQVWKHSODFH
EXWGRHVQ¶WVRFLDOL]HZLWKWKHUHVWRI
WKHKXPDQWKXJV

7KHVH NREROGV ZHUH FDSWXUHG


E\6KDQNOLQVHYHQPRQWKVDJRDQG
KDYH EHHQ IRUFHG WR EH WKH JXLOG¶V
VODYHV7KH\DUHREYLRXVO\UHVHQW
IXO RI WKH JXLOG  7KH\ VSHQG WKHLU
WLPH FOHDQLQJ WKH GLQLQJ KDOO DQG
JHQHUDOO\DFWLQJOLNHWKH\DUHPHHN
'LQLQJ+DOO OLWWOH NREROGV  7KH\ DUH WU\LQJ WR

 'LQLQJ+DOO
&RRSHUDWLYH'XQJHRQ+DOOVRI$QDUFK\
GHYLVHDSODQIRUHVFDSHEXWKDYHVRIDUQRWFRPHXS
ZLWKRQHWKDWZRXOGJHWWKHPIDUHQRXJKDZD\ 6OHHSLQJ4XDUWHUV
7KUHHWKLQJVPDNHWKHNREROG¶VOLIHEHDUDEOH)LUVW 5PFRQWULEXWHGE\$ODVWDLU%HOO
WKHJXLOGPHPEHUVGRQRWNQRZWKH\DUHDFFRPSOLVKHG
OLWWOH WKLHYHV  6HFRQG WKH\ WUXO\ ORYH WRUPHQWLQJ WKH 7KLVLVDQHDWO\IXUQLVKHGIRRWE\IRRWFKDP
RQO\SHUVRQORZHUWKHQWKHPRQWKHWRWHPSROHWKHKX EHUZLWKDIRRWKLJKFHLOLQJ,WFRQWDLQVDIXQFWLRQDO
PDQER\%DUHQ7KH\HQMR\EULQJLQJWKHER\KLVPHDOV ORRNLQJ EXQN EHG GHVN DQG FDELQHW $ IDLQW VPHOO RI
LQWKH+DOORI-XGJHPHQW7KLVXVXDOO\LQFOXGHVDFRX XQZDVKHGERGLHVOLQJHUVLQWKHDLU7KHUHLVYHU\OLWWOH
SOHRINLFNVWRWKHER\DQGVSLOOHGIRRGRQWKHÀRRUKH LQWKHZD\RISHUVRQDOSRVVHVVLRQV
FRQWLQXDOO\FOHDQV/DVWWKHNREROGVORYHWDNLQJWKLQJV
IURPWKHJXLOGPHPEHUV7KH\KLGHWKHVHWUHDVXUHVLQ 7KHVLPSOHZRRGHQGRRUVDUHFORVHGEXWXQORFNHG
WKHLUFXSERDUGEXQNEHG LQWKLVDUHD 6WUHQJWK'&+DUGQHVVKS

2WKHU)HDWXUHV7KHUHDUHH[LWVRQERWKWKHVRXWKHUQ (QFRXQWHUV )LYH JXLOG URJXHV RFFXS\ WKHVH URRPV


DQGHDVWHUQZDOOFRYHUHGE\EOXHFXUWDLQV 7ZRHDFKLQWKHURRPVRQHLWKHUVLGHRIWKHHQWUDQFH
FRUULGRU IURP URRP ¿YH WKH HDVWHUQ WZR DUH DZDNH 
7KHUH LVDQ ROG FXSERDUG WKHNREROGV KDYH WXUQHG RQHLQWKHURRPRSSRVLWHURRPVHYHQ
LQWRDFUXGHEXQNEHGLQWKHVRXWKHDVWHUQFRUQHURIWKH
URRP 7KH NREROGV NHHS WKHLU WUHDVXUH KHUH 6HDUFK ,QWHUDFWLRQ 7KH JXLOG URJXHV PDNH /LVWHQ FKHFNV
FKHFN '& WR¿QG6RIDUWKH\KDYHVWROHQJS WR QRWLFH DQ\ LQWUXGHUV HQWHULQJ IURP URRP ¿YH ORXG
VSDQGWZRSRWLRQVRIFXUHOLJKWZRXQGV FRPEDW LQ URRP ¿YH UHTXLUHV D /LVWHQ FKHFN '&  WR
EHKHDUG7KH\KDYH/LVWHQPRGL¿HUVRIDQGD±
7KH FXSERDUG DOVR FRQWDLQV SRWV DQG SDQV DQG D PRGL¿HULIDVOHHS
SRUWDEOHVWRYHWKDWLVVWRNHGZLWKFRDO7KLVLVZKHUH
WKH\FRRNZKDWOLWWOHIRRGWKH\SUHSDUH 7KHLUWDFWLFVZLOOFRQVLVWRIZDNLQJWKHLUIHOORZJXLOG
PHPEHUV DQG 6KDQNOLQ LQ URRP VHYHQ  ,I WKHUH LV D
7KHEDUUHOLQWKHVRXWKHDVWHUQFRUQHUFRQWDLQVYHU\ EDWWOHLQURRP¿YHWKH\DUPWKHPVHOYHV DQGGRQDU
SRRUTXDOLW\DOHIRUWKH*XLOGPHPEHUVWRGULQN PRU EHIRUHMRLQLQJ2WKHUZLVHWKH\VWDJHDQDPEXVK

6OHHSLQJ4XDUWHUV

6KDQNOLQ¶V/DLU
5PFRQWULEXWHGE\$ODVWDLU%HOO
7KLV URRP LV D ODYLVKO\ GHFRUDWHG EHGURRP DQG
VWXG\ $ EHG LV DJDLQVW WKH HDVWHUQ ZDOO VLON VKHHWV
DQGSLOORZVVWUHZQRQWRSRILW&ORWKLQJOLHVVFDWWHUHG
DFURVVWKHÀRRU$GHVNVLWVRQWKHZHVWHUQZDOOSD
SHUVSLOHGRQWRSRILW$VLQJOHODQWHUQSODFHGRQWKH
6KDQNOLQ¶V/DLU GHVNLOOXPLQDWHVWKHURRP7KHVPHOORIEXUQLQJRLODQG
VWDOHVRFNVSHUPHDWHVWKHDLU

6OHHSLQJ4XDUWHUV6KDQNOLQ¶V/DLU 
&RRSHUDWLYH'XQJHRQ+DOOVRI$QDUFK\
7KH VWURQJ ZRRGHQ GRRU LV FORVHG ORFNHG DQG LPDJH VHH LQYLVLELOLW\ ZHE UG²FODLUDXGLHQFH
WUDSSHG VHHEHORZ  2SHQORFN'&6WUHQJWK'& FODLUYR\DQFH GLVSHOPDJLF KDVWH PDMRULPDJHWK²
+DUGQHVVKS DUFDQHH\H JUHDWHULQYLVLELOLW\
*HDU 0DVWHUZRUN GDJJHU ZDQG RI LQYLVLELOLW\ \ 
7UDS &50HFKDQLFDO7RXFKQRUHVHW7KXQGHU FKDUJHV  VSHOOERRN  SODWLQXP SLHFHV VHZQ LQWR
VWRQH6HDUFK'&'LVDEOH'HYLFH'&'LVDEOH EHOW  JROG MHZHOU\  JS  VFUROO RI GLVSHO PDJLF 
'HYLFH '&  RU EHWWHU UHFRYHUV 7KXQGHUVWRQH  7KH SRWLRQVRIFXUHPRGHUDWHZRXQGV G UREHV
ORFNWRWKLVURRPLVWUDSSHGZLWKDWKXQGHUVWRQHWKH
EODVW GLUHFWHG LQWR WKH KDOOZD\ ,I WKH WUDS LV WULJJHUHG 6SHOOERRN &DQWULSV VW²FKDUP SHUVRQ FRPSUH
WKHQLWZLOODOHUWDQ\RQHLQURRPVL[DQGZDNHVVOHHSHUV KHQG ODQJXDJHV H[SHGLWLRXV UHWUHDW JUHDVH VKLHOG
QG²JOLWWHUGXVW LQYLVLELOLW\ PLUURU LPDJH VHH LQYLV
(QFRXQWHU (/   ,I WKH SOD\HUV KDYH PDQDJHG WR LELOLW\ ZHE UG²FODLUDXGLHQFHFODLUYR\DQFH GLVSHO
UHDFKWKLVURRPXQGHWHFWHGWKHQ6KDQNOLQLVO\LQJRQ PDJLF KDVWH PDMRU LPDJH WK²DUFDQH H\H JUHDWHU
KLVEHGUHDGLQJDWRPHFDOOHG7KHIWDQG0DJLF,IDZDUH LQYLVLELOLW\
RIWKH3&¶VKHFDVWJUHDWHULQYLVLELOLW\DQGDWWHPSWVWR
\
HVFDSH 2WKHUZLVH KH VSLQV DQ XQOLNHO\ VWRU\ DERXW 'HVFULSWLRQ $ VKRUW VNLQQ\ PDQ ZLWK XQWLG\ EODFN
EHLQJDSULVRQHURIWKHJXLOGDQGWKDQNVKLVEROGUHVFX KDLUDQGDSRFNPDUNHGIDFH+HKDVDVXEVWDQWLDOFRO
HUV %OXIIFKHFNPRGL¿HU ,IWKDWIDLOVKHEHJVIRUKLV OHFWLRQ RI FKHDS JROG MHZHOU\ LQFOXGLQJ VHYHUDO IDFLDO
OLIH,IVSDUHGKHWDNHVDQ\RSSRUWXQLW\WRHVFDSHDQG SLHUFLQJV+HZHDUVEURZQUREHVWLHGZLWKDKHDY\EHOW
WKHQDVVLVWVKLVIHOORZJXLOGPHPEHUVRUÀHHV IURP ZKLFK KDQJ D FRPSRQHQW SRXFK DQG D GDJJHU
+HSURYLGHVWKHJXLOGZLWKPDJLFDODVVLVWDQFHPRVWO\
6KDQNOLQ +XPDQ 'LYLQHU  RSSRVHG 1HFURPDQF\  VFU\LQJWDUJHWV
&5+''KS,QLW6SG$& 
'H[  ÀDWIRRWHG  WRXFK  %DVH$WN  *US  7DFWLFV )LUVW FRPEDW DFWLRQ FDVW JUHDWHU LQYLVLELOLW\
$WN 'DJJHU  PHOHH G   )XOO $WN VDPH  RQ KLPVHOI :LWK WKLV DFWLYH KH HQVSHOOV RWKHU JXLOG
6SDFH5HDFK  IW IW $/ 1( 69 )RUW  5HI  PHPEHUV ZLWK KLV KDVWH VSHOO DQGRU ZDQG RI LQYLV
:LOO6WU'H[&RQ:LV,QW&KU LELOLW\+HFDVWVGLVSHOPDJLFDQG F JOLWWHUGXVWW WRUHPRYH
6NLOOV DQG )HDWV &RQFHQWUDWLRQ  +LGH  DQ\DGYDQWDJHRXVVSHOOVWKHLQYDGHUVKDYH+HXVHV
.QRZOHGJH DUFDQD .QRZOHGJH HQJLQHHULQJ  JUHDVH ZHEDQG PDMRULPDJHWRVRZFRQIXVLRQ+HLV
.QRZOHGJH ORFDO   0RYH 6LOHQWO\  6SHOOFUDIW DFRZDUGDQGLIKHIHHOVWKH¿JKWLVJRLQJDJDLQVWWKH
 6FULEH 6FUROO &RPEDW &DVWLQJ ,PSURYHG ,QLWLD JXLOGKHWULHVWRÀHH
WLYH 6NLOO )RFXV +LGH  6NLOO )RFXV 0RYH 6LOHQWO\ 
6LOHQW6SHOO7RXJKQHVV ,QWHUDFWLRQ 6KDQNOLQ UHVSRQGV WR DQ\ DODUP UDLVHG
6SHOOVSUHSDUHG '&OHYHO ²GH 0HPEHUVXVXDOO\VHHNKLPRXWWRJDLQKLVDLG+HLVQRW
WHFWPDJLF OLJKW RSHQFORVH UHDGPDJLFVW²FKDUP SDUWLFXODUO\EUDYHEXWWKLVLVEDODQFHGE\KLVIHDURIWKH
SHUVRQ FRPSUHKHQG ODQJXDJHV H[SHGLWLRXV UHWUHDW JXLOG DQG /RUG$QDUFK\$QDUFK\ LV LQDWWHQWLYH VR KH
JUHDVH   VKLHOG QG²JOLWWHUGXVW LQYLVLELOLW\ PLUURU KDQGOHVVRPHRIWKHJXLOG¶VGD\WRGD\GHFLVLRQV

%DUUHQ¶V5RRP
5PFRQWULEXWHGE\&RUH\/H0RLQH

7KLV VPDOO URRP LV KDUGO\ GHFRUDWHG WKH ZDOOV DV


ZHOODVWKHÀRRUDUHFROGJUH\VWRQHDQGWKHUHLVDUDWW\
SDOOHW LQ WKH FRUQHU 7KH RGRU RI XQZDVKHG ERGLHV LV
VWURQJLQWKHURRP

7KH QRUWKHUQ VLPSOH ZRRGHQ GRRU LV FORVHG EXW


XQORFNHG 6WUHQJWK'&+DUGQHVVKS

7UDSV$ODUP WUDS PDJLF GHYLFH WRXFK WULJJHU DXWR


UHVHWVSHOOHIIHFW DODUP6HDUFK'&'LVDEOH'HYLFH
'& $OHUWVWKRVHLQURRPWKLUWHHQ

1RWHV,IWKH3&¶VSHUIRUPD6HDUFK '& WKH\ZLOO


¿QGWKDWDVWRQHLQWKHFRUQHUVOLSVRXWDQGWKDW%DUUHQ
KDVKLGGHQDVPDOOSODWLQXPULQJLQVLGH ZRUWKJS 
%DUUHQIRXQGWKHULQJRQWKHÀRRURIWKH+DOORI-XGJH
PHQWDQGKLGLWDZD\+HKRSHVWRIUHHKLPVHOIDWVRPH
SRLQW DQG XVH LW WR VWDUW D QHZ OLIH RU UHWXUQ KRPH ,W
LVSRVVLEOHGHSHQGLQJRQSUHYLRXVHYHQWVLQWKHGXQ %DUUHQ¶V5RRP
JHRQWKH3&¶VPD\¿QG%DUUHQKLGLQJLQKLVURRP

 %DUUHQ¶V5RRP
&RRSHUDWLYH'XQJHRQ+DOOVRI$QDUFK\
,QWHUDFWLRQ /RUG $QDUFK\  KDV KDG %DUUHQ¶V GRRU *XLOGURJXH5RJ&5+'GKS,QLW
HQVSHOOHGVRWKDWDQDODUPVRXQGVLQKLVDV\OXPZKHQ 6SG $&   'H[ $UPRU  6KLHOG  WRXFK
HYHUDQ\RQHRSHQVWKHGRRUZLWKRXW¿UVWWRXFKLQJWKH ÀDWIRRWHG%DVH$WN*US$WN5DSLHU
NQRE ZLWK D SLHFH RI VLOYHU )RU VRPH UHDVRQ KH KDV G   RU 6KRUWERZ  UDQJHG G [  )XOO
WDNHQDIDQF\WR%DUUHQDQGGRHVQRWZLVKIRUKLPWR $WN VDPH 6$6QHDN$WWDFNG64(YDVLRQ7UDS
HVFDSHSHUKDSVKHVHHVVRPHWKLQJRIKLPVHOILQWKH VHQVH6SDFH5HDFKIWIW69)RUW5HI
\RXQJVWUHHW\RXWK%DUUHQLVWKHRQO\RQHZKRNQRZV :LOO6WU'H[&RQ,QW:LV&KD
/RUG$QDUFK\¶VUHDOQDPH 6NLOOVDQG)HDWV%OXII'LVDEOH'HYLFH'LV
JXLVH(VFDSH$UWLVW+LGH/LVWHQ0RYH
6LOHQWO\2SHQ/RFN6HDUFK6SRW7XPEOH
 &RPEDW ([SHUWLVH ,PSURYHG )HLQW :HDSRQ )L
&KDPEHURI QHVVH
*HDU 0DVWHUZRUN UDSLHU PDVWHUZRUN VWXGGHG

$VVHPEO\ OHDWKHU PDVWHUZRUN EXFNOHU PDVWHUZRUN VKRUWERZ


GJS

5PFRQWULEXWHGE\$QRQ\PRXV

7KLVODUJHFKDPEHULVVSDUVHO\GHFRUDWHG,QHDFK
FRUQHUVWDQGVDVWRQHSLOODUDQGDORQJWKHVRXWKZHVW
DQGHDVWZDOOVDUHURZVRIFKDLUV,QWKHFHQWHURIWKH
QRUWKHUQ ZDOO LV D JUDQGHU VHDW EHIRUH ZKLFK D ¿QH
UXJ JUDFHV WKH RWKHUZLVH XQDGRUQHG VWRQH ÀRRU 7R
WKH ZHVW RI WKH QRUWKHUQ VHDW VWDQGV D ODUJH FDELQHW
7KLVURRPLVZHOOOLWE\DVHULHVRIZDOOVFRQFHVHDFK
RIZKLFKFRQWDLQVDQ HYHUEXUQLQJWRUFKFDUHIXOO\SODFHG
VRWKDWWKHURRPKDVQRDSSDUHQWVKDGRZVLQZKLFKWR
KLGHHDVLO\

7KHVRXWKHUQZRRGHQGRRULVFORVHGEXWXQORFNHG
6WUHQJWK'&+DUGQHVV+S

7UDSV 7KH UXJ FRQFHDOV D SLW WUDS 6HDUFK '& 


'LVDEOH'HYLFH'&>MXVWUHPRYHWKHUXJDQGGRQ¶W
MXPSLQ@ 7KHSLWLVIHHWGHHSDQGWKLFNO\OLQHGZLWK
ZRRGHQVSLNHV DWWDFNVRQDQ\IDOOLQJFKDUDFWHUDW
GSRLQWVRISLHUFLQJGDPDJHSHUKLW7KLVVWDFNV
ZLWKWKHIDOOLQJGDPDJH 

(QFRXQWHU (/   ,I QRW DOHUWHG WKUHH JXLOG URJXHV


DUHLQWKLVURRP7KH\DUHSORWWLQJWKHGHPLVHRI/RUG
$QDUFK\6KRXOG3&VSHUIRUPD/LVWHQFKHFNWKH\PD\
KHDUVRPHGHWDLOVRIWKHSODQ /LVWHQFKHFN'&WR
KHDU YRLFHV '&  IRU WRSLF  ZKLFK LQYROYHV ZDLWLQJ
XQWLO$QDUFK\ IDOOV LQWR WKH WUDS DQG WKHQ SHOWLQJ KLP
ZLWK KRO\ ZDWHU WKDW KDV EHHQ VPXJJOHG LQ  ,I DZDUH
&KDPEHU
RIWKH3&VWKH\WU\WROXUHWKHPWRIDOOLQWKHSLWWUDS
E\WDONLQJWRWKHPRUWDXQWLQJWKHP DQGWKHQDWWDFN
RI$VVHPEO\
2WKHU )HDWXUHV 7KHUH DUH  HYHUEXUQLQJ WRUFKHV
V LQ
WKHVFRQFHV
3UHDFKLQJ+DOO
7KHFDELQHWFRQWDLQVDVVRUWHGLWHPVHPSOR\HGE\WKH 5PFRQWULEXWHGE\%HQ/HYLQ
URJXHVRQWKHLUMREV &RQWHQWV7KLHYHVWRROV RQH
RIZKLFKLVPDVWHUZRUN WDQJOHIRRWEDJV  WKXQGHU 7KLV URRP LV ODUJH DQG DUUDQJHG OLNH D FRQJUHJD
VWRQHV  VPRNHVWLFNV  DQGDZDQGRILQYLVLELOLW\ WLRQKDOO7KHPDQ\FKDLUVDUHIDFHGWRZDUGVDUDLVHG
>FKDUJHV@ 7RWKHHDVWRIWKHVHDWWKHUHLVDZHDSRQ SODWIRUP7KHSODWIRUPLVRFFXSLHGE\DQDOWHUDQGWZR
UDFNKROGLQJVKRUWVZRUGV7ZRVXLWVRIOHDWKHUDUPRU VWDWXHV2QHRIWKHVWDWXHVLVRIDQHYLOGHLW\UHDGLQJD
KDYHEHHQFDUHOHVVO\GURSSHGEHKLQGWKHFDELQHW ERRNZKLOHWKHRWKHURIWKDWHYLOGHLW\ZKLVSHULQJLQWR
DQHDU
$6HDUFKFKHFN '& RIWKHFKDLUVUHYHDOVDVPDOO
ERWWOHRIKRO\ZDWHUDI¿[HGWRWKHERWWRPRIVL[FKDLUV 7KHQRUWKHUQOLJKWZRRGHQGRRULVFORVHGEXWKDVQR
QHDUWKHQRUWKHUQSDUWRIWKHURRP ORFN 6WUHQJWK'&+DUGQHVVKS

&KDPEHURI$VVHPEO\3UHDFKLQJ+DOO 
&RRSHUDWLYH'XQJHRQ+DOOVRI$QDUFK\
(QFRXQWHU (/ $JKRVWNQRZQRQO\DV³7KH'HDWK VRXUFH $ PDQLIHVWHG JKRVW FDQ SDVV WKURXJK VROLG
OHVV 3UHDFKHU´ LQKDELWV WKH KDOO SHUSHWXDOO\ VSHZLQJ REMHFWVDWZLOODQGLWVRZQDWWDFNVSDVVWKURXJKDUPRU
WKHWHDFKLQJVRIWKHHYLOGHLW\ZKHWKHURUQRWDQ\RQH $ PDQLIHVWHG JKRVW DOZD\V PRYHV VLOHQWO\ $ PDQL
HOVHLVLQWKHURRP:KLOHXVXDOO\TXLWHERULQJKHRF IHVWHGJKRVWFDQVWULNHZLWKLWVWRXFKDWWDFNRUZLWKD
FDVLRQDOO\ VD\V VRPHWKLQJ RI JUHDW LPSRUWDQFH VXFK JKRVWWRXFKZHDSRQ VHH*KRVWO\(TXLSPHQWEHORZ 
DVWKHORFDWLRQRIDQDQFLHQWDUWLIDFW VRWKHURXJHVOLV $ PDQLIHVWHG JKRVW UHPDLQV SDUWLDOO\ RQ WKH (WKHUHDO
WHQWRKLPKRSLQJWRKHDUVRPHWKLQJXVHIXO7ZRJXLOG 3ODQHZKHUHLVLWQRWLQFRUSRUHDO$PDQLIHVWHGJKRVW
URJXHVDUHQRUPDOO\SUHVHQWWU\LQJWRJHWDFOXH FDQ EH DWWDFNHG E\ RSSRQHQWV RQ HLWKHU WKH 0DWHULDO
3ODQHRUWKH(WKHUHDO3ODQH7KHJKRVW¶VLQFRUSRUHDOLW\
7KH'HDWKOHVV3UHDFKHU&OUJKRVW .QRZOHGJHDQG KHOSVSURWHFWLWIURPIRHVRQWKH0DWHULDO3ODQHEXWQRW
(YLOGRPDLQV &5+'GKS,QLW6SG IURPIRHVRQWKH(WKHUHDO3ODQH
IW À\ $& 'H[ WRXFKÀDWIRRWHG%DVH :KHQDVSHOOFDVWLQJJKRVWLVQRWPDQLIHVWHGDQGLV
$WN  *US $WN ,QFRUSRUHDO WRXFK  G  )XOO RQWKH(WKHUHDO3ODQHLWVVSHOOVFDQQRWDIIHFWWDUJHWV
$WN VDPH 6SDFH5HDFKIWIW6$64JKRVWWUDLWV RQWKH0DWHULDO3ODQHEXWWKH\ZRUNQRUPDOO\DJDLQVW
VHHHQWULHVEHORZ $//(69)RUW5HI:LOO HWKHUHDOWDUJHWV:KHQDVSHOOFDVWLQJJKRVWPDQLIHVWV
6WU'H[&RQ±±,QW:LV&KD LWVVSHOOVFRQWLQXHWRDIIHFWHWKHUHDOWDUJHWVDQGFDQDI I
6NLOOV DQG )HDWV .QRZOHGJH DUFDQD   .QRZO IHFWWDUJHWVRQWKH0DWHULDO3ODQHQRUPDOO\XQOHVVWKH
HGJH KHUDOGU\   .QRZOHGJH KLVWRU\   .QRZO VSHOOVUHO\RQWRXFK$PDQLIHVWHGJKRVW¶VWRXFKVSHOOV
HGJH UHOLJLRQ 6SHOOFUDIW6NLOO)RFXV .QRZO GRQ¶WZRUNRQQRQHWKHUHDOWDUJHWV
HGJH>UHOLJLRQ@ 7RXJKQHVV $ JKRVW KDV WZR KRPH SODQHV WKH 0DWHULDO 3ODQH
6SHOOV .QRZOHGJH DQG (YLO GRPDLQV  ²LQÀLFW DQGWKH(WKHUHDO3ODQH,WLVQRWFRQVLGHUHGH[WUDSODQDU
OLJKW ZRXQGV [  UHDG PDJLF VW²FRPPDQG LQÀLFW ZKHQRQHLWKHURIWKHVHSODQHV
OLJKW ZRXQGV SURWHFWLRQ IURP JRRG VKLHOG RI IDLWK 5HMXYHQDWLRQ 6X  ,Q PRVW FDVHV LW¶V GLI¿FXOW WR
QG²GHWHFWWKRXJKWV LQÀLFWPRG
HUDWHZRXQGV VSLULWXDOZHDSRQ
6SHFLDO$WWDFNV7KHVDYH'&
DJDLQVW D VSHFLDO DWWDFN LV HTXDO 3UHDFKLQJ+DOO
WR    JKRVW¶V +'  JKRVW¶V
&KDULVPD PRGL¿HU   XQOHVV
RWKHUZLVHQRWHG
&RUUXSWLQJ*D]H 6X $JKRVW
FDQ EODVW OLYLQJ EHLQJV ZLWK D
JODQFHDWDUDQJHRIXSWRIHHW
&UHDWXUHV WKDW PHHW WKH JKRVW¶V
JD]HPXVWVXFFHHGRQD)RUWLWXGH
VDYH '&  RU WDNH G SRLQWV
RIGDPDJHDQGGSRLQWVRI&KD
ULVPDGDPDJH
)ULJKWIXO 0RDQ 6X  $ JKRVW
FDQ HPLW D IULJKWIXO PRDQ DV D
VWDQGDUG DFWLRQ $OO OLYLQJ FUHD
WXUHVZLWKLQDIRRWVSUHDGPXVW
VXFFHHGRQD:LOOVDYH'&RU
EHFRPHSDQLFNHGIRUGURXQGV
7KLVLVDVRQLFQHFURPDQWLFPLQG
DIIHFWLQJ IHDU HIIHFW $ FUHDWXUH
WKDW VXFFHVVIXOO\ VDYHV DJDLQVW
WKH PRDQ FDQQRW EH DIIHFWHG E\
WKH VDPH JKRVW¶V PRDQ IRU 
KRXUV
0DQLIHVWDWLRQ 6X  (YHU\
JKRVW KDV WKLV DELOLW\ $ JKRVW
GZHOOVRQWKH(WKHUHDO3ODQHDQG
DVDQHWKHUHDOFUHDWXUHLWFDQQRW
DIIHFWRUEHDIIHFWHGE\DQ\WKLQJLQ
WKHPDWHULDOZRUOG:KHQDJKRVW
PDQLIHVWVLWSDUWO\HQWHUVWKH0D
WHULDO 3ODQH DQG EHFRPHV YLVLEOH
EXW LQFRUSRUHDO RQ WKH 0DWHULDO
3ODQH$PDQLIHVWHGJKRVWFDQEH
KDUPHGRQO\E\RWKHULQFRUSRUHDO
FUHDWXUHV PDJLF ZHDSRQV RU
VSHOOV ZLWK D  FKDQFH WR LJ
QRUHDQ\GDPDJHIURPDFRUSRUHDO

 3UHDFKLQJ+DOO
&RRSHUDWLYH'XQJHRQ+DOOVRI$QDUFK\
GHVWUR\ D JKRVW WKURXJK VLPSOH FRPEDW 7KH ³GH SURRIDJDLQVWSRLVRQ
VWUR\HG´VSLULWZLOORIWHQUHVWRUHLWVHOILQGGD\V(YHQ 1RWHWKDWDOOJHDUFDUULHGE\DJKRVWLVLQFRUSRUHDO
WKH PRVW SRZHUIXO VSHOOV DUH XVXDOO\ RQO\ WHPSRUDU\ DQGGRHVQRWH[LVWRQWKHPDWHULDOSODQH
VROXWLRQV$ JKRVW WKDW ZRXOG RWKHUZLVH EH GHVWUR\HG
UHWXUQVWRLWVROGKDXQWVZLWKDVXFFHVVIXOOHYHOFKHFN 2WKHU )HDWXUHV 7R VRPHRQH ZKR YDOXHV VXFK RE
GJKRVW¶V+' DJDLQVW'&$VDUXOHWKHRQO\ MHFWV WKH VWDWXHV PLJKW EH ZRUWK  JS HDFK 7KH
ZD\ WR JHW ULG RI D JKRVW IRU VXUH LV WR GHWHUPLQH WKH VWDWXH FDQ EH LGHQWL¿HG ZLWK D .QRZOHGJH UHOLJLRQ 
UHDVRQIRULWVH[LVWHQFHDQGVHWULJKWZKDWHYHUSUHYHQWV FKHFN '&   DV DQ HYLO *RG RI 7UHDFKHU\ *0¶V
LWIURPUHVWLQJLQSHDFH7KHH[DFWPHDQVYDULHVZLWK &KRLFHDVDSSURSULDWHWRWKHLUFDPSDLJQ
HDFKVSLULWDQGPD\UHTXLUHDJRRGGHDORIUHVHDUFK
7XUQ5HVLVWDQFH ([ +DVWXUQUHVLVWDQFH ,QWHUDFWLRQ 7KH WZR URJXHV DUH OLVWHQLQJ LQWHQWO\ WR
*HDU )XOO SODWH PDLO ODUJH VWHHO VKLHOG D VPDOO 7KH 3UHDFKHU DQG QRW OLNHO\ WR KHDU DQ\WKLQJ XQOHVV
EURQ]HKRO\V\PEROFRQWDLQHUVRILQFHQVHSHULDSWRI WKH¿JKWLQJWDNHVSODFHULJKWRXWVLGHWKHURRP

7KHZHVWHUQVWURQJZRRGHQGRRULVFORVHGKDVQR
+DOORI ORFNEXWLVWUDSSHG 6HDUFK'&  6WUHQJWK'&
+DUGQHVVKS

-XGJHPHQW %DUUHQ1*KXPDQPDOHFRPPRQHU
7KHUHLVDVPDOOER\LQWKHURRPRQKLVKDQGVDQG
5PFRQWULEXWHGE\&RUH\/H0RLQH NQHHV SROLVKLQJ WKH ÀRRU ,I DQ\RQH HQWHUV WKH URRP
ZKRLVQRWVXSSRVHGWREHWKHUHKHJHWVYHU\QHUYRXV
7KHGRRUWRWKLVURRPDSSHDUVWREHPDGHRIDVWRXW +HWDONVWRWKH3&¶VDQGLIWKH\SURYHWREHQLFHWRKLP
KDUGZRRGDQGLVFDUYHGZLWKWKHOLNHQHVVHVRIYLQHV DW DOO KH LV YHU\ FRRSHUDWLYH7KH ER\¶V QDPH LV %DU
DQG OHDYHV ,QVLGH WKH URRP LV PXFK PRUH RSXOHQW UHQDQG/RUG$QDUFK\NLGQDSSHGKLPIURPWKHVWUHHWV
WKDQ WKH UHVW RI WKH JXLOG KRXVH REYLRXVO\ WKLV LV D DERYH RQ D ZKLP 6LQFH KH KDV EHHQ KHUH DERXW 
URRPPHDQWWRLPSUHVV7KHZDOOVDUHFRYHUHGLQWDS PRQWKV  %DUUHQ KDV EHHQ WROG WR NHHS WKH +DOO RI
HVWULHVGHSLFWLQJVFHQHVRIHYHU\GD\KDOÀLQJOLIH7KH -XGJHPHQWVSDUNOLQJDQGLQJRRGUHSDLU7KHYDPSLUH
ÀRRUVDUHRIPDUEOHLQODLGZLWKWKHV\PERORIDVLOYHU DOVR XVHV WKH ER\ IRU KLV RZQ DPXVHPHQWV DQG WKH
FRLQDQGDSSHDUWREHKLJKO\SROLVKHG$PDVVLYHRDN 3&¶V FDQ HDVLO\ VHH VLJQV RI DEXVH VXFK DV EUXLVHV
GHVN WDNHV XS WKH IDU VLGH RI WKH URRP ,W LV HQWLUHO\ DQGSXQFWXUHZRXQGVRQKLVVNLQ%DUUHQH[SORUHVWKH
FRYHUHGZLWKFDUYLQJVRIDUFKDLFKDOÀLQJGHFRUDWLRQV JXLOG KDOOV ZKHQHYHU KH FDQ DQG WKXV LV TXLWH NQRZO
:KDW DSSHDUV WR EH DQ XQGHUVL]HG LI PDJQL¿FHQW HGJHDEOHDERXWWKHJRLQJVRQ+HGRHVQRWVKDUHWKLV
WKURQHUHVWVEHKLQGLW,QIURQWRIWKHGHVNVWDQGWKUHH LQIRUPDWLRQZLWKDQ\RQHXQOHVVKHOHDUQVWRWUXVWWKHP
VPDOODQGUDWKHUSODLQVWRROV
7UDSV$VWKHGRRULVRSHQHGDPHFKDQLVPDWWDFKHG
WR LW WULJJHUV D KHDY\
JRQJ LQVLGH WKH URRP
6HDUFK FKHFN '& 
'LVDEOH 'HYLFH FKHFN
'& 

1RWHV 7KRVH VWXG\


LQJ WKH WDSHVWULHV FDQ
PDNH D .QRZOHGJH
KLVWRU\ FKHFN '& 
WR QRWLFH WKH VFHQHV
GHSLFWOLIHIRUDKDOÀLQJ
VHYHUDO KXQGUHG \HDUV
DJR

,QWHUDFWLRQ 7KH JRQJ


FDQ EH KHDUG E\ /RUG
$QDUFK\ E\ PDNLQJ D
/LVWHQ FKHFN '&  
/LVWHQ   5RJXHV
LQ URRP QLQH KDYH WR
PDNH D /LVWHQ FKHFN
'&   /LVWHQ   WR
QRWLFH WKH JRQJ DQG
DOO RWKHU JXLOG URJXHV
UHTXLUH D /LVWHQ FKHFN
+DOORI-XGJHPHQW '&  /LVWHQ 

+DOORI-XGJHPHQW 
&RRSHUDWLYH'XQJHRQ+DOOVRI$QDUFK\

7HPSOH(QWUDQFH

7HPSOH '& $WNPHOHH SOXVSRLVRQQHHGOH SRLVRQ


EOXH ZKLQQLV '&  )RUWLWXGH VDYH UHVLVWV SRLVRQ
RQO\   &RQVWLWXWLRQXQFRQVFLRXVQHVV  6HDUFK '&

(QWUDQFH 'LVDEOH'HYLFH'&

)HDWXUHV 7KH VRXWKHUQ GRRU WKRXJK QRW FRPSOHWHO\


5PFRQWULEXWHGE\&KULV6DO]HU KLGGHQ LV QRW HDVLO\ QRWLFHG ,W FDQ EH QRWLFHG ZLWK
6SRW FKHFN '&   EXW FDQ EH IRXQG HDVLO\ ZLWK D
7KLVURRPLVVLPSO\GHVLJQHG,WKDVDPDWFKLQJURZ 6HDUFKFKHFN '& 
RIFROXPQVÀRRUWRFHLOLQJZKLFKLVLWVHOIRQO\IHHW
KLJK7KHFROXPQVKDYHOLWWOHGHFRUDWLRQWKRXJKHDFK (QFRXQWHU (/   %UROLQ PDNHV KLV KRPH KHUH +H
RQH KDV D QXPEHU RI JHRPHWULF GHVLJQV FDUYHG LQWR ZDVGUDZQWRWKLVWHPSOHDQGKDVVLQFHVWDUWHGEXLOG
LW2QWKHIDUHQGRIWKHURRPLVDVLPSOHGDLVZLWKD LQJLWKLVQHZEDVHRIRSHUDWLRQVE\DVVXPLQJFRQWURO
UDLVHGFKDLUVHWQHDWO\LQWKHFHQWHU7KHFKDLULWVHOILV RIWKHJXLOG%UROLQLIHQFRXQWHUHGKHUHZLOOFDVWLQYLV
ZRRGHQZLWKUHGYHOYHWFXVKLRQVDQGDFURZQFDUYHG LELOLW\RQKLPVHOIWKHQXVHKLVFOHULFDODELOLWLHVWREROVWHU
\
WKHWRSFHQWHURILWVKLJKEDFN7KHÀRRUDQGFHLOLQJV WKH WKUHH YDPSLUH VSDZQ KH KDV KHUH )LUVW E\ XVLQJ
DUHFRYHUHGLQDGDUNDOPRVWEODFNWLOHZKLOHWKHZDOOV GHVHFUDWHWKHQ EOHVVHWF$VWKHVSDZQVWDUWWRORVH
V
DUHDPL[WXUHRIVPRN\JUD\VZLWKEODFNVWUHDNV WKH EDWWOH KH ZLOO XVH HDJOH¶V VSOHQGRU U ERRVWLQJ WKH
'&V RI KLV VSHFLDO DELOLWLHV  IROORZHG  ZLWK VKLHOG RI
7KHVWRQHVHFUHWGRRULQWKHFRUULGRULVFORVHGDQG
IDLWK,IWKLQJVJRDJDLQVWKLPEDGO\KHZLOOXVHREVFXU U
ORFNHG 6HDUFK '&  2SHQ /RFN '&  6WUHQJWK
LQJPLVWWRFRYHUKLVHVFDSH
W
'&+DUGQHVVKS 
7KHZHVWHUQVWRQHGRRULVFORVHGDQGORFNHG 2SHQ
/RFN'&6WUHQJWK'&+DUGQHVV+S %UROLQ¶VYDPSLUHVSDZQODFNVRPHRIWKHDELOLWLHVRI
7KHVRXWKHUQFRQFHDOHGVWRQHGRRULVFORVHGDQG QRUPDOVSDZQ7KH\GRQRWGUDLQEORRGGUDLQOHYHOVRU
ORFNHG 2SHQORFN'&6WUHQJWK'&+DUGQHVV GRPLQDWH%UROLQEHOLHYHVLWLVEHFDXVHRIWKHLUODFNRI
+S IDLWK7KHUHDOUHDVRQLVWKDWKLV*RGLVWDXQWLQJKLP
7KLVLVRQHUHDVRQKHPDLQWDLQVWKHJXLOGQRWKDYLQJ
7UDSV7KURQH 3RLVRQ1HHGOH7UDS&5PHFKDQL ZLSHG WKHP RXW LI IDYRU RI VHUYDQWV ZKR DUH GHDWKO\
FDOWRXFKWULJJHUUHSDLUUHVHWORFNE\SDVV 2SHQ/RFN OR\DOOLNHKLVVSDZQ

 7HPSOH(QWUDQFH
&RRSHUDWLYH'XQJHRQ+DOOVRI$QDUFK\
%UROLQ 6KDG\PLQG +DOÀLQJ &OU YDPSLUH NQRZQ OR DQGWKRVHPHUHO\ORRNLQJDWLWDUHQRWDIIHFWHG$Q\RQH
FDOO\DV/RUG$QDUFK\ &5+'GKS,QLW WKHYDPSLUHWDUJHWVPXVWVXFFHHGRQD:LOOVDYHRUIDOO
6SG$& VL]H'H[QDWXUDODUPRU LQVWDQWO\XQGHUWKHYDPSLUH¶VLQÀXHQFHDVWKRXJKE\D
'RGJH>YHUVXVRQHRSSRQHQW@WRXFKÀDWIRRWHG GRPLQDWH SHUVRQ VSHOO FDVWHU OHYHO WK  7KH DELOLW\
%DVH$WN*US$WN6ODP GSOXVHQ KDVDUDQJHRIIHHW
HUJ\ GUDLQ  )XOO $WN VDPH  6SDFH5HDFK  IW IW  &UHDWH 6SDZQ 6X  $ KXPDQRLG RU PRQVWURXV
6$YDPSLUHWUDLWV VHHHQWULHV 64'5VLOYHUDQG KXPDQRLG VODLQ E\ D YDPSLUH¶V HQHUJ\ GUDLQ ULVHV DV
PDJLF IDVW KHDOLQJ  FROG DQG HOHFWULFLW\ UHVLVWDQFH DYDPSLUHVSDZQ VHHWKH9DPSLUH6SDZQHQWU\ G
$/&(6DYHV)RUW5HÀH[:LOO YHUVXV GD\VDIWHUEXULDO
IHDU 6WU'H[&RQ²:LV,QW&KU  ,I WKH YDPSLUH LQVWHDG GUDLQV WKH YLFWLP¶V &RQVWLWX
 6NLOOVDQG)HDWV%OXII&OLPE&RQFHQWUDWH WLRQ WR  RU ORZHU WKH YLFWLP UHWXUQV DV D VSDZQ LI LW
 +LGH  -XPS  .QRZOHGJH DUFDQD   KDGRUOHVV+'DQGDVDYDPSLUHLILWKDGRUPRUH
.QRZOHGJH UHOLJLRQ /LVWHQ0RYHVLOHQWO\ +' ,Q HLWKHU FDVH WKH QHZ YDPSLUH RU VSDZQ LV XQ
6HDUFK  6HQVH PRWLYH  6SHOOFUDIW  6SRW GHU WKH FRPPDQG RI WKH YDPSLUH WKDW FUHDWHG LW DQG
$OHUWQHVV% &RPEDW &DVWLQJ &RPEDW 5HÀH[HV% UHPDLQVHQVODYHGXQWLOLWVPDVWHU¶VGHVWUXFWLRQ$WDQ\
'RGJH% ,PSURYHG ,QLWLDWLYH% /LJKWQLQJ 5HÀH[HV% JLYHQWLPHDYDPSLUHPD\KDYHHQVODYHGVSDZQWRWDO
6FULEH6FUROO6LOHQW6SHOO % %RQXV)HDW  LQJ QR PRUH WKDQ WZLFH LWV RZQ +LW 'LFH DQ\ VSDZQ
 *HDU0DVWHUZRUNVWXGGHGOHDWKHUDUPRUEURRFKRI LW FUHDWHV WKDW ZRXOG H[FHHG WKLV OLPLW DUH FUHDWHG DV
VKLHOGLQJIHDWKHUWRNHQRIWKHZKLSNH\VWRDOOURRPV IUHHZLOOHGYDPSLUHVRUYDPSLUHVSDZQ$YDPSLUHWKDW
 6SHOOV SUHSDUHG 7ULFNHU\ DQG (YLO 'RPDLQV (YLO LVHQVODYHGPD\FUHDWHDQGHQVODYHVSDZQRILWVRZQ
GRPDLQVSHOOVFDVWDWOHYHO'&OHYHO VR D PDVWHU YDPSLUH FDQ FRQWURO D QXPEHU RI OHVVHU
  ²GHWHFW PDJLF JXLGDQFH LQÀLFW PLQRU YDPSLUHVLQWKLVIDVKLRQ$YDPSLUHPD\YROXQWDULO\IUHH
ZRXQGVOLJKWPHQGLQJVW²EOHVVGLYLQHIDYRULQÀLFW DQHQVODYHGVSDZQLQRUGHUWRHQVODYHDQHZVSDZQ
OLJKW ZRXQGV REVFXULQJ PLVW SURWHFWLRQ IURP JRRG  EXWRQFHIUHHGDYDPSLUHRUYDPSLUHVSDZQFDQQRWEH
VKLHOG RI IDLWK QG²GHVHFUDWH GHDWK NQHOO HDJOH¶V HQVODYHGDJDLQ
VSOHQGRU LQYLVLELOLW\  UHVLVW HQHUJ\ XVXDOO\ ¿UH   (QHUJ\'UDLQ 6X /LYLQJFUHDWXUHVKLWE\DYDP
UG²GLVSHO PDJLF LQÀLFW VH
ULRXV ZRXQGV PDJLF FLUFOH
DJDLQVW JRRG  PHOG LQWR
VWRQH GRPDLQVSHOOV 
 6SHFLDO$ELOLWLHV$OO'&¶V
DW &KDULVPDEDVHG 
 %ORRG 'UDLQ ([ $ YDP
SLUH FDQ VXFN EORRG IURP D
OLYLQJ YLFWLP ZLWK LWV IDQJV E\
PDNLQJ D VXFFHVVIXO JUDSSOH
FKHFN ,I LW SLQV WKH IRH LW
GUDLQV EORRG GHDOLQJ G
SRLQWV RI &RQVWLWXWLRQ GUDLQ
HDFK URXQG WKH SLQ LV PDLQ
WDLQHG 2Q HDFK VXFK VXF
FHVVIXO DWWDFN WKH YDPSLUH
JDLQVWHPSRUDU\KLWSRLQWV
 &KLOGUHQ RI WKH 1LJKW
6X  9DPSLUHV FRPPDQG
WKH OHVVHU FUHDWXUHV RI WKH
ZRUOG DQG RQFH SHU GD\ FDQ
FDOO IRUWK G UDW VZDUPV
GEDWVZDUPVRUDSDFN
RI G ZROYHV DV D VWDQGDUG
DFWLRQ ,I WKH EDVH FUHDWXUH
LV QRW WHUUHVWULDO WKLV SRZHU
PLJKW VXPPRQ RWKHU FUHD
WXUHVRIVLPLODUSRZHU 7KHVH
FUHDWXUHVDUULYHLQGURXQGV
DQGVHUYHWKHYDPSLUHIRUXS
WRKRXU
 'RPLQDWH 6X $YDPSLUH
FDQ FUXVK DQ RSSRQHQW¶V ZLOO
MXVWE\ORRNLQJRQWRKLVRUKHU
H\HV7KLVLVVLPLODUWRDJD]H
DWWDFNH[FHSWWKDWWKHYDPSLUH
PXVW XVH D  VWDQGDUG DFWLRQ

7HPSOH(QWUDQFH 
&RRSHUDWLYH'XQJHRQ+DOOVRI$QDUFK\
SLUH¶V VODP DWWDFN RU DQ\ RWKHU QDWXUDO ZHDSRQ WKH  6OD\LQJD9DPSLUH5HGXFLQJDYDPSLUH¶VKLWSRLQWV
YDPSLUH PLJKW SRVVHVV  JDLQ WZR QHJDWLYH OHYHOV WR  RU ORZHU LQFDSDFLWDWHV LW EXW GRHVQ¶W DOZD\V GH
)RUHDFKQHJDWLYHOHYHOEHVWRZHGWKHYDPSLUHJDLQV VWUR\LW VHHWKHQRWHRQIDVWKHDOLQJ +RZHYHUFHUWDLQ
 WHPSRUDU\ KLW SRLQWV$ YDPSLUH FDQ XVH LWV HQHUJ\ DWWDFNV FDQ VOD\ YDPSLUHV ([SRVLQJ DQ\ YDPSLUH WR
GUDLQDELOLW\RQFHSHUURXQG GLUHFW VXQOLJKW GLVRULHQWV LW ,W FDQ WDNH RQO\ D VLQJOH
 $OWHUQDWH )RUP 6X  $ YDPSLUH FDQ DVVXPH WKH PRYHDFWLRQRUDWWDFNDFWLRQDQGLVGHVWUR\HGXWWHUO\LQ
VKDSH RI D EDW GLUH EDW ZROI RU GLUH ZROI DV D VWDQ WKHQH[WURXQGLILWFDQQRWHVFDSH6LPLODUO\LPPHUVLQJ
GDUGDFWLRQ7KLVDELOLW\LVVLPLODUWRDSRO\PRUSKVSHOO D YDPSLUH LQ UXQQLQJ ZDWHU UREV LW RI RQHWKLUG RI LWV
FDVWE\DWKOHYHOFKDUDFWHUH[FHSWWKDWWKHYDPSLUH KLWSRLQWVHDFKURXQGXQWLOLWLVGHVWUR\HGDWWKHHQGRI
GRHVQRWUHJDLQKLWSRLQWVIRUFKDQJLQJIRUPDQGPXVW WKHWKLUGURXQGRILPPHUVLRQ'ULYLQJDZRRGHQVWDNH
FKRRVHIURPDPRQJWKHIRUPVPHQWLRQHGKHUH:KLOH WKURXJKDYDPSLUH¶VKHDUWLQVWDQWO\VOD\VWKHPRQVWHU
LQLWVDOWHUQDWHIRUPWKHYDPSLUHORVHVLWVQDWXUDOVODP +RZHYHULWUHWXUQVWROLIHLIWKHVWDNHLVUHPRYHGXQ
DWWDFN DQG GRPLQDWH DELOLW\ EXW LW JDLQV WKH QDWXUDO OHVVWKHERG\LVGHVWUR\HG$SRSXODUWDFWLFLVWRFXWRII
ZHDSRQVDQGH[WUDRUGLQDU\VSHFLDODWWDFNVRILWVQHZ WKHFUHDWXUH¶VKHDGDQG¿OOLWVPRXWKZLWKKRO\ZDIHUV
IRUP,WFDQUHPDLQLQWKDWIRUPXQWLOLWDVVXPHVDQRWKHU RUWKHLUHTXLYDOHQW 
RUXQWLOWKHQH[WVXQULVH ,IWKHEDVHFUHDWXUHLVQRWWHU
UHVWULDOWKLVSRZHUPLJKWDOORZRWKHUIRUPV 9DPSLUH 6SDZQ   0HGLXP 8QGHDG &5  +'
 'DPDJH 5HGXFWLRQ 6X $ YDPSLUH KDV GDPDJH GKS,QLW6SGIW$& 'H[
UHGXFWLRQ VLOYHU DQG PDJLF $ YDPSLUH¶V QDWXUDO QDWXUDO WRXFKÀDWIRRWHG%DVH$WN*US
ZHDSRQV DUH WUHDWHG DV PDJLF ZHDSRQV IRU WKH SXU $WN 6ODP  PHOHH G  )XOO$WN VDPH  6SDFH
SRVHRIRYHUFRPLQJGDPDJHUHGXFWLRQ 5HDFKIWIW6$ QRQH 64WXUQUHVLVWDQFH'5
 )DVW+HDOLQJ ([ $YDPSLUHKHDOVSRLQWVRIGDP VLOYHUGDUNYLVLRQIWIDVWKHDOLQJJDVHRXVIRUP
DJHHDFKURXQGVRORQJDVLWKDVDWOHDVWKLWSRLQW UHVLVWDQFH WR FROG  DQG HOHFWULFLW\  VSLGHU FOLPE
,I UHGXFHG WR  KLW SRLQWV LQ FRPEDW LW DXWRPDWLFDOO\
XQGHDGWUDLWV$//(6DYHV)RUW5HI:LOO
DVVXPHV JDVHRXV IRUP DQG DWWHPSWV WR HVFDSH ,W 6WU'H[&RQ²,QW:LV&KD
PXVWUHDFKLWVFRI¿QKRPHZLWKLQKRXUVRUEHXWWHUO\  6NLOOVDQG)HDWV%OXII&OLPE&UDIWRU3UR
GHVWUR\HG ,WFDQWUDYHOXSWRQLQHPLOHVLQKRXUV  IHVVLRQ DQ\RQH 'LSORPDF\+LGH-XPS
$Q\DGGLWLRQDOGDPDJHGHDOWWRDYDPSLUHIRUFHGLQWR /LVWHQ0RYH6LOHQWO\6HDUFK6HQVH
JDVHRXVIRUPKDVQRHIIHFW2QFHDWUHVWLQLWVFRI¿QD 0RWLYH6SRW$OHUWQHVV%,PSURYHG,QLWLDWLYH%
YDPSLUHLVKHOSOHVV,WUHJDLQVKLWSRLQWDIWHUKRXU /LJKWQLQJ5HÀH[HV%6NLOO)RFXV VHOHFWHG&UDIWRU3UR
WKHQLVQRORQJHUKHOSOHVVDQGUHVXPHVKHDOLQJDWWKH IHVVLRQVNLOO 7RXJKQHVV
UDWHRIKLWSRLQWVSHUURXQG  )DVW+HDOLQJ ([ $YDPSLUHVSDZQKHDOVSRLQWV
 *DVHRXV)RUP 6X $VDVWDQGDUGDFWLRQDYDP RIGDPDJHHDFKURXQGVRORQJDVLWKDVDWOHDVWKLW
SLUH FDQ DVVXPH JDVHRXV IRUP DW ZLOO DV WKH VSHOO SRLQW,IUHGXFHGWRKLWSRLQWVLQFRPEDWLWDXWRPDWL
FDVWHUOHYHOWK EXWLWFDQUHPDLQJDVHRXVLQGH¿QLWHO\ FDOO\DVVXPHVJDVHRXVIRUPDQGDWWHPSWVWRHVFDSH,W
DQGKDVDÀ\VSHHGRIIHHWZLWKSHUIHFWPDQHXYHU PXVWUHDFKLWVFRI¿QKRPHZLWKLQKRXUVRUEHXWWHUO\
DELOLW\ GHVWUR\HG ,WFDQWUDYHOXSWRQLQHPLOHVLQKRXUV 
 5HVLVWDQFHV ([ $YDPSLUHKDVUHVLVWDQFHWRFROG 2QFHDWUHVWLQLWVFRI¿QLWLVKHOSOHVV,WUHJDLQVKLW
DQGHOHFWULFLW\ SRLQW DIWHU  KRXU WKHQ LV QR ORQJHU KHOSOHVV DQG UH
 6SLGHU&OLPE ([ $YDPSLUHFDQFOLPEVKHHUVXU VXPHVKHDOLQJDWWKHUDWHRIKLWSRLQWVSHUURXQG
IDFHVDVWKRXJKZLWKDVSLGHUFOLPEVSHOO  *DVHRXV )RUP 6X  $V D VWDQGDUG DFWLRQ D
 7XUQ 5HVLVWDQFH ([ $ YDPSLUH KDV  WXUQ UH YDPSLUH VSDZQ FDQ DVVXPH JDVHRXV IRUP DW ZLOO DV
VLVWDQFH WKHVSHOO FDVWHUOHYHOWK EXWLWFDQUHPDLQJDVHRXV
LQGH¿QLWHO\DQGKDVDÀ\VSHHGRIIHHWZLWKSHUIHFW
 9DPSLUH :HDNQHVVHV )RU DOO WKHLU SRZHU YDP PDQHXYHUDELOLW\
SLUHVKDYHDQXPEHURIZHDNQHVVHV  6SLGHU &OLPE ([  $ YDPSLUH VSDZQ FDQ FOLPE
VKHHUVXUIDFHVDVWKRXJKZLWKDVSLGHUFOLPEVSHOO
 5HSHOOLQJD9DPSLUH9DPSLUHVFDQQRWWROHUDWHWKH  6NLOOV 9DPSLUH VSDZQ KDYH D  UDFLDO ERQXV RQ
VWURQJRGRURIJDUOLFDQGZLOOQRWHQWHUDQDUHDODFHG %OXII+LGH/LVWHQ0RYH6LOHQWO\6HDUFK6HQVH0R
ZLWKLW6LPLODUO\WKH\UHFRLOIURPDPLUURURUDVWURQJO\ WLYHDQG6SRWFKHFNV
SUHVHQWHG KRO\ V\PERO 7KHVH WKLQJV GRQ¶W KDUP WKH
YDPSLUH²²WKH\ PHUHO\ NHHS LW DW ED\ $ UHFRLOLQJ  9DPSLUHVSDZQZHDNQHVVHV9DPSLUHVSDZQDUH
YDPSLUHPXVWVWD\DWOHDVWIHHWDZD\IURPDFUHDWXUH YXOQHUDEOHWRDOODWWDFNVDQGHIIHFWVWKDWUHSHORUVOD\
KROGLQJWKHPLUURURUKRO\V\PERODQGFDQQRWWRXFKRU YDPSLUHV IRUGHWDLOVVHHWKHYDPSLUHHQWU\ 
PDNH PHOHH DWWDFNV DJDLQVW WKH FUHDWXUH KROGLQJ WKH
LWHPIRUWKHUHVWRIWKHHQFRXQWHU+ROGLQJDYDPSLUHDW ,QWHUDFWLRQ /RUG$QDUFK\ FDUHV OLWWOH DERXW WKH JXLOG
ED\WDNHVDVWDQGDUGDFWLRQ DQGRQO\UHVSRQGVWRDQDODUPUDLVHGE\RUDERXW%DU
 9DPSLUHVDUHDOVRXQDEOHWRFURVVUXQQLQJZDWHUDO UHQ +H UHVSRQGV WR WKH JRQJ VHQGLQJ WKH YDPSLUH
WKRXJKWKH\FDQEHFDUULHGRYHULWZKLOHUHVWLQJLQWKHLU VSDZQ WR LQYHVWLJDWH DIWHU HQVSHOOLQJ WKHP ZLWK DS
FRI¿QVRUDERDUGDVKLS SURSULDWHHQKDQFHPHQWV 
 7KH\ DUH XWWHUO\ XQDEOH WR HQWHU D KRPH RU RWKHU
EXLOGLQJXQOHVVLQYLWHGLQE\VRPHRQHZLWKWKHDXWKRU
LW\WRGRVR7KH\PD\IUHHO\HQWHUSXEOLFSODFHVVLQFH
WKHVHDUHE\GH¿QLWLRQRSHQWRDOO

 7HPSOH(QWUDQFH
&RRSHUDWLYH'XQJHRQ+DOOVRI$QDUFK\

%UROLQ¶V4XDUWHUV

%UROLQ¶V4XDUWHUV 6HDUFK'&'LVDEOH'HYLFH'&

2WKHU )HDWXUHV 7KH FRI¿Q KDV WZR WUDSV 7U\LQJ WR


5PFRQWULEXWHGE\&KULV6DO]HU RSHQWKHORFNWULJJHUVWKHJDVZKLFKLVWKLFNDQGJUD\
RSHQLQJWKHOLGWULJJHUVWKH¿UHEDOOWUDS7KHFRI¿QKDV
O
7KLV URRP LV REYLRXVO\ VRPHRQH¶V EHG FKDPEHU KDUGQHVVDQGKLWSRLQWV,WKDVD%UHDN'&RI
,WLVOLWE\WZR(YHUEXUQLQJWRUFKHVLQVFRQFHVRQWKH WRRSHQWKHORFNOLG
HDVWDQGZHVWZDOOV$GHVNVLWVLQWKHVRXWKHDVWFRUQHU
ZLWKDSLOHRIXQRUJDQL]HGVFUROOVDQGSDSHUVRQLW,Q 7KH SDSHUV RQ WKH GHVN GHVFULEH %UROLQ¶V FXUUHQW
WKHFHQWHURIWKHEHGLVDVPDOOFKLOG¶VFRI¿QVPDGHRI SODQV7KHVHDUHOHIWRSHQWRWKH'0WRLQWURGXFHLQIRU
VKLQ\PHWDO7KHFDELQHWRQWKHQRUWKZDOOLVPDGHRI PDWLRQRUKRRNVIRUIXUWKHUDGYHQWXUHV
GDUNO\VWDLQHGPDKRJDQ\
7KH FDELQHW LV KDUGZRRG DQG ORFNHG 2SHQ /RFN
7KHQRUWKHUQVWRQHGRRULVFORVHGDQGORFNHG 2SHQ '&EUHDN'&+DUGQHVV+LWSRLQWV ,WKDV
ORFN'&6WUHQJWK'&+DUGQHVV+S FORWKLQJDQGSHUVRQDOHIIHFWVVRPHVKRZLQJVLJQVRI
7KH VRXWKHUQ VWRQH VHFUHW GRRU LV FORVHG DQG GLVXVH,IVFDYHQJHGWRWDOZRUWKLVJS
ORFNHG 6HDUFK'&2SHQ/RFN'&6WUHQJWK'&
+DUGQHVV+S +LGGHQ LQ D VHFUHW FRPSDUWPHQW 6HDUFK '&  
ZLWKLQWKHFDELQHWLVDVLOYHUDQGJROGFRIIHUFRQWDLQLQJ
7UDSV &RI¿Q *DV 7UDS &5  PHFKDQLFDO ORFDWLRQ DVLOYHUQHFNODFHZLWKDVLQJOHEODFNSHDUO7KHFRIIHU
WULJJHUPDQXDOUHVHWJDVPXOWLSOHWDUJHWV DOOWDUJHWV LVZRUWKJSDQGWKHQHFNODFHJS$OVRLQWKH
LQDIWE\IWURRP QHYHUPLVVRQVHWGHOD\  FRIIHULVD ZDQGRIFXUHOLJKWZRXQGV FKDUJHV 
URXQGV SRLVRQ HVVHQFHRIVFRUSLRQ>PLVW@LQMXU\)RU
WLWXGHVDYH '& UHVLVWVGVWUHQJWKGVWUHQJWK  7KHUH LV D VPDOO YHQW OHDGLQJ EDFN WR WKH VHZHUV
6HDUFK'&'LVDEOH'HYLFH'& WKLVLVREYLRXVGXHWRWKHVPHOO
)LUHEDOO 7UDS &5  PDJLF GHYLFH RSHQLQJ WULJ 1RWHV7KLVFRI¿QLVQRWXVHGE\%UROLQ,WLVPHUHO\D
JHU DXWRPDWLF UHVHW VSHOO HIIHFW )LUHEDOO WKOHYHO GXPP\RQHXVHGWRNLOORIIWKRVHZKRKDYHPDQDJHGWR
ZL]DUG G ¿UH 5HÀH[ VDYH '&   KDOI GDPDJH  SHQHWUDWHWKLVIDULQWRKLVKRPH

%UROLQ¶V4XDUWHUV 
&RRSHUDWLYH'XQJHRQ+DOOVRI$QDUFK\
7KHFUDWHVDUHHLWKHUHPSW\RUKDYHOHDWKHUJRRGV
6HFUHW5RRP DQGRWKHUFRPPRQLWHPVIURPWKHORFDOPDUNHW1RQH
RILWLVRIVHULRXVYDOXH
5PFRQWULEXWHGE\&KULV6DO]HU
$PRQJWKHVDFNVLVD EDJRIKROGLQJW\SH, 6HDUFK
,
7KLV URRP LV XQOLW DQG FROG ,W FRQWDLQV D VPDOO
'& 
VLPSOHZRRGHQFKDLUDQGGHVN$VPDOOSDOOHWLVVWRUHG
LQDFDELQHWRQWKHHDVWZDOOWKHFDELQHWKDVQRGRRUV
1RWHV7KHJLUOPD\EHWKHREMHFWRIWKHTXHVWE\WKH
$VHULHVRIVKHOYHVDUHDWWDFKHGWRWKHVRXWKHUQZDOO
FKDUDFWHUVRUMXVWDYLFWLPRIFLUFXPVWDQFHDQGVDYHG
,QIURQWRIWKHVKHOYHVDUHVHYHUDOFUDWHVDQGKDOI¿OOHG
E\WKHWLPHO\LQWHUYHQWLRQRIWKH3&V
VDFNV$VPDOOZRRGHQSODWHVLWVRQWKHGHVNZLWKKDOI
HDWHQEXUQWIRRG

7KH QRUWKHUQ VWRQH VHFUHW GRRU LV FORVHG DQG


ORFNHG 6HDUFK'&2SHQORFN'&6WUHQJWK'&
+DUGQHVVKS

(QFRXQWHU+LGLQJLQWKHURRPLVDVPDOOJLUOUHFHQWO\
NLGQDSSHGE\%UROLQIRUXVHLQKLVGDUNULWXDOV6KHLVD
¿UVWOHYHODULVWRFUDWZLWKWKHVWDWVRIDVPDOOFKLOG6KH
KDV D KLGH PRGL¿HU RI  DQG LV FXUUHQWO\ KXQNHUHG
GRZQEHKLQGWKHFUDWHVDQGVDFNVDORQJWKHVRXWKHUQ
ZDOO 6KH DWWDFNV DQ\RQH ZKR GLVFRYHUV KHU ZLWK D
VKDUSHQHGVSRRQ6KHLVK\VWHULFDOZLWKIHDU+HUFXU
UHQWFRQGLWLRQDQGZKDWKDVEHHQGRQHWRKHUGHSHQGV
RQWKHPDWXULW\OHYHORIWKHSOD\HUV,IWKH\FDQKDQGOH
LW VKH KDV REYLRXVO\ OLYHG WKURXJK WKH ZRUVW RI QLJKW
PDUHVRWKHUZLVHVKHFDQMXVWEHEUXLVHGDQGKXQJU\

/LWWOHJLUO$UL&5+'GKS,QLW6SG
$& VL]H'H[ WRXFKÀDWIRRWHG
%DVH$WN*US$WN6KDUSVSRRQPHOHHG
)XOO$WN VDPH  6SDFH5HDFK  IW IW 69 )RUW 
5HI:LOO6WU'H[&RQ,QW:LV
&KD
6NLOOVDQG)HDWV+LGH/LVWHQ0RYH6LOHQW
O\6HQVH0RWLYH6SRW6XUYLYDO3HUIRUP
VLQJ 3UR¿FLHQF\ VKDUSVSRRQ 6WHDOWK\
*HDU6KDUSVSRRQ

2WKHU )HDWXUHV 8QGHU WKH VKHOYHV RQ WKH VRXWKHUQ


ZDOOLVDZRRGHQFKLOGUHQ¶VFRI¿QLQZKLFK%UROLQVOHHSV
,WLVQRWORFNHGQRUWUDSSHGDQGKDV+DUGQHVVDQG
KS7KHOLWWOHJLUONQRZVDERXWWKHFRI¿QKDYLQJVHHQ
KLPFRPHDQGJRIURPLW7KHFRI¿QORRNVPRUHOLNHDQ
RGGO\VKDSHGFUDWHWKDQDQ\WKLQJHOVH 6HFUHW5RRP

$SSHQGL[ &RPEDW([SHUWLVH,PSURYHG)HLQW:HDSRQ)LQHVVH
*HDU 0DVWHUZRUN UDSLHU PDVWHUZRUN VWXGGHG
*XLOGURJXH5RJ&5+'GKS,QLW OHDWKHU PDVWHUZRUN EXFNOHU PDVWHUZRUN VKRUWERZ
6SG $&   'H[ $UPRU  6KLHOG  WRXFK GJS
ÀDWIRRWHG%DVH$WN*US$WN5DSLHU
G   RU 6KRUWERZ  UDQJHG G [  )XOO ,QWHUDFWLRQ 7KH *XLOG PHPEHUV DUH PRVWO\ OR\DO WR
$WN VDPH 6$6QHDN$WWDFNG64(YDVLRQ7UDS HDFK RWKHU 5HJDUGOHVV RI WKHLU SHUVRQDO PRWLYDWLRQ
VHQVH6SDFH5HDFKIWIW69)RUW5HI WKH\ VHHN WR GHIHQG WKHPVHOYHV DQG WKHLU ODLU 7KH\
:LOO6WU'H[&RQ,QW:LV&KD FDQ EH FRQYLQFHG ZLWK VXI¿FLHQW LQGXFHPHQW WR UH
6NLOOVDQG)HDWV%OXII'LVDEOH'HYLFH'LV YHDO LQIRUPDWLRQ RQ WKH *XLOG DUHD 7KH\ NQRZ /RUG
JXLVH(VFDSH$UWLVW+LGH/LVWHQ0RYH6L $QDUFK\¶VWUXHQDWXUHEXWDYRLGDFWXDOO\WHOOLQJDQ\RQH
OHQWO\2SHQ/RFN6HDUFK6SRW7XPEOH 7KH\UHVSRQGWRDODUPVDVTXLFNO\DVSRVVLEOH

 6HFUHW5RRP
Open Game License v1.0a
The following text is the property of Wizards of the Coast, Inc. and is Copyright 2000 Wizards of the Coast, Inc ("Wizards"). All Rights
Reserved.
1. Definitions: (a)"Contributors" means the copyright and/or trademark owners who have contributed Open Game Content; (b)"Derivative
Material" means copyrighted material including derivative works and translations (including into other computer languages), potation,
modification, correction, addition, extension, upgrade, improvement, compilation, abridgment or other form in which an existing work may be
recast, transformed or adapted; (c) "Distribute" means to reproduce, license, rent, lease, sell, broadcast, publicly display, transmit or otherwise
distribute; (d)"Open Game Content" means the game mechanic and includes the methods, procedures, processes and routines to the extent
such content does not embody the Product Identity and is an enhancement over the prior art and any additional content clearly identified as
Open Game Content by the Contributor, and means any work covered by this License, including translations and derivative works under
copyright law, but specifically excludes Product Identity. (e) "Product Identity" means product and product line names, logos and identifying
marks including trade dress; artifacts; creatures characters; stories, storylines, plots, thematic elements, dialogue, incidents, language,
artwork, symbols, designs, depictions, likenesses, formats, poses, concepts, themes and graphic, photographic and other visual or audio
representations; names and descriptions of characters, spells, enchantments, personalities, teams, personas, likenesses and special abilities;
places, locations, environments, creatures, equipment, magical or supernatural abilities or effects, logos, symbols, or graphic designs; and any
other trademark or registered trademark clearly identified as Product identity by the owner of the Product Identity, and which specifically
excludes the Open Game Content; (f) "Trademark" means the logos, names, mark, sign, motto, designs that are used by a Contributor to
identify itself or its products or the associated products contributed to the Open Game License by the Contributor (g) "Use", "Used" or "Using"
means to use, Distribute, copy, edit, format, modify, translate and otherwise create Derivative Material of Open Game Content. (h) "You" or
"Your" means the licensee in terms of this agreement.
2. The License: This License applies to any Open Game Content that contains a notice indicating that the Open Game Content may only
be Used under and in terms of this License. You must affix such a notice to any Open Game Content that you Use. No terms may be added to
or subtracted from this License except as described by the License itself. No other terms or conditions may be applied to any Open Game
Content distributed using this License.
3.Offer and Acceptance: By Using the Open Game Content You indicate Your acceptance of the terms of this License.
4. Grant and Consideration: In consideration for agreeing to use this License, the Contributors grant You a perpetual, worldwide, royalty-
free, non-exclusive license with the exact terms of this License to Use, the Open Game Content.
5.Representation of Authority to Contribute: If You are contributing original material as Open Game Content, You represent that Your
Contributions are Your original creation and/or You have sufficient rights to grant the rights conveyed by this License.
6.Notice of License Copyright: You must update the COPYRIGHT NOTICE portion of this License to include the exact text of the
COPYRIGHT NOTICE of any Open Game Content You are copying, modifying or distributing, and You must add the title, the copyright date,
and the copyright holder's name to the COPYRIGHT NOTICE of any original Open Game Content you Distribute.
7. Use of Product Identity: You agree not to Use any Product Identity, including as an indication as to compatibility, except as expressly
licensed in another, independent Agreement with the owner of each element of that Product Identity. You agree not to indicate compatibility or
co-adaptability with any Trademark or Registered Trademark in conjunction with a work containing Open Game Content except as expressly
licensed in another, independent Agreement with the owner of such Trademark or Registered Trademark. The use of any Product Identity in
Open Game Content does not constitute a challenge to the ownership of that Product Identity. The owner of any Product Identity used in Open
Game Content shall retain all rights, title and interest in and to that Product Identity.
8. Identification: If you distribute Open Game Content You must clearly indicate which portions of the work that you are distributing are
Open Game Content.
9. Updating the License: Wizards or its designated Agents may publish updated versions of this License. You may use any authorized
version of this License to copy, modify and distribute any Open Game Content originally distributed under any version of this License.
10. Copy of this License: You MUST include a copy of this License with every copy of the Open Game Content You Distribute.
11. Use of Contributor Credits: You may not market or advertise the Open Game Content using the name of any Contributor unless You
have written permission from the Contributor to do so.
12. Inability to Comply: If it is impossible for You to comply with any of the terms of this License with respect to some or all of the Open
Game Content due to statute, judicial order, or governmental regulation then You may not Use any Open Game Material so affected.
13. Termination: This License will terminate automatically if You fail to comply with all terms herein and fail to cure such breach within 30
days of becoming aware of the breach. All sublicenses shall survive the termination of this License.
14. Reformation: If any provision of this License is held to be unenforceable, such provision shall be reformed only to the extent necessary
to make it enforceable.
15. COPYRIGHT NOTICE - Open Game License v 1.0a Copyright 2000, Wizards of the Coast, Inc.
System Reference Document Copyright 2000-2003, Wizards of the Coast, Inc.; Authors Jonathan Tweet, Monte Cook, Skip Williams, Rich
Baker, Andy Collins, David Noonan, Rich Redman, Bruce R. Cordell, based on original material by E. Gary Gygax and Dave Arneson.
Cooperative Dungeon 02 – Halls of Anarchy, Copyright 2004 Mark Alexander Clover. More information on Cooperative Dungeon 02 –
Halls of Anarchy can be found at www.creativemountaingames.com.
Character Portraits: Fantasy Heroes copyright 2003, Mongoose Publishing [End of License]
Notice of Open Game Content: This product contains Open Game Content as defined in the Open Game License, above. Open Game
Content may only be Used under and in terms of the Open Game License.
Designation of Open Game Content: The statistical information and general descriptions of creatures, abilities, traps, and other related
facets of those elements within this document are Open Game Content as described in the Open Game License and may be used as Open
Game Content.
Product Identity is not available for Use or reuse without the express written consent of Mark Alexander Clover of Creative Mountain
Games.
Designation of Product Identity: Product Identity in this product includes the following terms; Creative Mountain Games, the Creative
Mountain Games logo, www.creativemountaingames.com and Mark Alexander Clover.
This document is copyright Mark Alexander Clover of Creative Mountain Games 2004. It is intended for personal use and may not be
redistributed or reproduced without express written consent of Mark Alexander Clover of Creative Mountain Games. With the exception of
Open Game Content (which can be used as described above), the individual contributions within this document are copyright (in their original
form) of the respective contributors, as are their own names, and are used with permission of the contributor coordinator, Rene Mongrain.
Their names accompany their contributions and they can be contacted through Rene Mongrain.

You might also like