Professional Documents
Culture Documents
0RWRUF\FOH6DIHW\ 3॥
2SHUDWLRQ*XLGH 3।५
0DLQWHQDQFH 3।।१
7URXEOHVKRRWLQJ 3।४५
,QIRUPDWLRQ 3।६६
6SHFLILFDWLRQV 3॥॥०
,QGH[ 3॥॥४
31MKF600 CBR1000RR/RA/S1
:HOFRPH
&RQJUDWXODWLRQVRQ\RXUSXUFKDVHRIDQHZ :KHQVHUYLFHLVUHTXLUHGUHPHPEHUWKDW
+RQGDPRWRUF\FOH<RXUVHOHFWLRQRID \RXU+RQGDGHDOHUNQRZV\RXUPRWRUF\FOH
+RQGDPDNHV\RXSDUWRIDZRUOGZLGHIDPLO\ EHVW,I\RXKDYHWKHUHTXLUHGPHFKDQLFDO
RIVDWLVILHGFXVWRPHUVZKRDSSUHFLDWH ´NQRZKRZµDQGWRROV\RXFDQSXUFKDVHDQ
+RQGD VUHSXWDWLRQIRUEXLOGLQJTXDOLW\LQWR RIILFLDO+RQGD6HUYLFH0DQXDOWRKHOS\RX
HYHU\SURGXFW SHUIRUPPDQ\PDLQWHQDQFHDQGUHSDLUWDVNV
2 3
7RHQVXUH\RXUVDIHW\DQGULGLQJSOHDVXUH 5HDGWKHZDUUDQW\LQIRUPDWLRQWKRURXJKO\VR
॥ 5HDGWKLVRZQHU VPDQXDOFDUHIXOO\ WKDW\RXXQGHUVWDQGWKHZDUUDQW\FRYHUDJH
॥ )ROORZDOOUHFRPPHQGDWLRQVDQG DQGWKDW\RXDUHDZDUHRI\RXUULJKWVDQG
SURFHGXUHVFRQWDLQHGLQWKLVPDQXDO UHVSRQVLELOLWLHV2 3
॥ 3D\FORVHDWWHQWLRQWRVDIHW\PHVVDJHV <RXPD\DOVRZDQWWRYLVLWRXUZHEVLWHDW
FRQWDLQHGLQWKLVPDQXDODQGRQWKH ZZZSRZHUVSRUWVKRQGDFRP
PRWRUF\FOH &DQDGD ZZZKRQGDFD
7RSURWHFW\RXULQYHVWPHQWZHXUJH\RXWR +DSS\ULGLQJ
WDNHUHVSRQVLELOLW\IRUNHHSLQJ\RXU &DOLIRUQLD3URSRVLWLRQ:DUQLQJ
PRWRUF\FOHZHOOVHUYLFHGDQGPDLQWDLQHG :$51,1*7KLVSURGXFWFRQWDLQVRUHPLWV
$OVRREVHUYHWKHEUHDNLQJXLGHOLQHVDQG FKHPLFDOVNQRZQWRWKH6WDWHRI&DOLIRUQLDWR
DOZD\VSHUIRUPWKHSUHULGHLQVSHFWLRQDQG FDXVHFDQFHUDQGELUWKGHIHFWVRURWKHU
RWKHUSHULRGLFFKHFNVLQWKLVPDQXDO UHSURGXFWLYHKDUP
$)HZ:RUGV$ERXW6DIHW\
<RXUVDIHW\DQGWKHVDIHW\RIRWKHUVLVYHU\
3'$1*(5
LPSRUWDQW2SHUDWLQJWKLVPRWRUF\FOHVDIHO\LV
DQLPSRUWDQWUHVSRQVLELOLW\ <RX:,//EH.,//('RU6(5,286/<
7RKHOS\RXPDNHLQIRUPHGGHFLVLRQVDERXW +857LI\RXGRQ·WIROORZLQVWUXFWLRQV
VDIHW\ZHKDYHSURYLGHGRSHUDWLQJ
SURFHGXUHVDQGRWKHULQIRUPDWLRQRQVDIHW\ 3:$51,1*
ODEHOVDQGLQWKLVPDQXDO7KLVLQIRUPDWLRQ <RX&$1EH.,//('RU6(5,286/<
DOHUWV\RXWRSRWHQWLDOKD]DUGVWKDWFRXOG +857LI\RXGRQ·WIROORZLQVWUXFWLRQV
KXUW\RXRURWKHUV
2IFRXUVHLWLVQRWSUDFWLFDORUSRVVLEOHWR 3&$87,21
ZDUQ\RXDERXWDOOKD]DUGVDVVRFLDWHGZLWK <RX&$1EH+857LI\RXGRQ·WIROORZ
RSHUDWLQJRUPDLQWDLQLQJDPRWRUF\FOH<RX LQVWUXFWLRQV
PXVWXVH\RXURZQJRRGMXGJPHQW
<RXZLOOILQGLPSRUWDQWVDIHW\LQIRUPDWLRQLQD 2WKHULPSRUWDQWLQIRUPDWLRQLV
YDULHW\RIIRUPVLQFOXGLQJ SURYLGHGXQGHUWKHIROORZLQJWLWOHV
127,&( ,QIRUPDWLRQWRKHOS\RXDYRLG
॥ 6DIHW\ODEHOVRQWKHPRWRUF\FOH
॥ 6DIHW\0HVVDJHVSUHFHGHGE\DVDIHW\DOHUW GDPDJHWR\RXUPRWRUF\FOH
V\PERO DQGRQHRIWKUHHVLJQDOZRUGV RWKHUSURSHUW\RUWKH
'$1*(5:$51,1*RU&$87,21 HQYLURQPHQW
7KHVHVLJQDOZRUGVPHDQ
0RWRUF\FOH6DIHW\
7KLVVHFWLRQFRQWDLQVLPSRUWDQWLQIRUPDWLRQIRUVDIHULGLQJRI\RXUPRWRUF\FOH
3OHDVHUHDGWKLVVHFWLRQFDUHIXOO\
6DIHW\*XLGHOLQHV %HIRUH5LGLQJ
0DNHVXUHWKDW\RXDUHSK\VLFDOO\ILWPHQWDOO\
0RWRUF\FOH6DIHW\
)ROORZWKHVHJXLGHOLQHVWRHQKDQFH\RXUVDIHW\
IRFXVHGDQGIUHHRIDOFRKRODQGGUXJV
॥ 3HUIRUPDOOURXWLQHDQGUHJXODULQVSHFWLRQV
&%5555$
VSHFLILHGLQWKLVPDQXDO
&KHFNWKDW\RXDQG\RXUSDVVHQJHUDUHERWK
॥ 6WRSWKHHQJLQHDQGNHHSVSDUNVDQGIODPH
ZHDULQJDQDSSURYHGPRWRUF\FOHKHOPHWDQG
DZD\EHIRUHILOOLQJWKHIXHOWDQN
SURWHFWLYHDSSDUHO,QVWUXFW\RXUSDVVHQJHURQ
॥ 'RQRWUXQWKHHQJLQHLQHQFORVHGRUSDUWO\
KROGLQJRQWRWKHVHDWVWUDSRU\RXUZDLVW
HQFORVHGDUHDV&DUERQPRQR[LGHLQ
OHDQLQJZLWK\RXLQWXUQVDQGNHHSLQJWKHLUIHHW
H[KDXVWJDVHVLVWR[LFDQGFDQNLOO\RX
RQWKHIRRWSHJVHYHQZKHQWKHPRWRUF\FOHLV
VWRSSHG
$OZD\V:HDUD+HOPHW &%56
&KHFNWKDW\RXDUHZHDULQJDQDSSURYHG
,W VDSURYHQIDFWKHOPHWVDQGSURWHFWLYH
PRWRUF\FOHKHOPHWDQGSURWHFWLYHDSSDUHO
DSSDUHOVLJQLILFDQWO\UHGXFHWKHQXPEHUDQG
VHYHULW\RIKHDGDQGRWKHULQMXULHV6RDOZD\V
ZHDUDQDSSURYHGPRWRUF\FOHKHOPHWDQG
SURWHFWLYHDSSDUHO2 3
&RQWLQXHG
6DIHW\*XLGHOLQHV
SUDFWLFHULGLQJLQDVDIHDUHDWREHFRPHIDPLOLDU \RXDQGGRQRWDVVXPHWKDWRWKHUGULYHUVVHH
ZLWKKRZWKLVPRWRUF\FOHZRUNVDQGKDQGOHV \RX%HSUHSDUHGWRVWRSTXLFNO\RUSHUIRUPDQ
DQGWREHFRPHDFFXVWRPHGWRWKHPRWRUF\FOH V HYDVLYHPDQHXYHU
VL]HDQGZHLJKW
:HUHFRPPHQGWKDWDOOULGHUVWDNHDFHUWLILHG
FRXUVHDSSURYHGE\WKH0RWRUF\FOH6DIHW\ 0DNH<RXUVHOI(DV\WR6HH
)RXQGDWLRQ 06) 1HZULGHUVVKRXOGVWDUWZLWK 0DNH\RXUVHOIPRUHYLVLEOHHVSHFLDOO\DWQLJKW
WKHEDVLFFRXUVHDQGHYHQH[SHULHQFHGULGHUV E\ZHDULQJEULJKWUHIOHFWLYHFORWKLQJSRVLWLRQLQJ
ZLOOILQGWKHDGYDQFHGFRXUVHEHQHILFLDO \RXUVHOIVRRWKHUGULYHUVFDQVHH\RXVLJQDOLQJ
)RULQIRUPDWLRQDERXWWKH06)WUDLQLQJFRXUVH EHIRUHWXUQLQJRUFKDQJLQJODQHVDQGXVLQJ
QHDUHVW\RXFDOOWKHQDWLRQDOWROOIUHHQXPEHU \RXUKRUQZKHQQHFHVVDU\
86$ 2WKHUULGLQJWLSVFDQEHIRXQGLQWKH<RX
DQG<RXU0RWRUF\FOH5LGLQJ7LSVERRNOHWWKDW
FDPHZLWK\RXUPRWRUF\FOH
6DIHW\*XLGHOLQHV
0RWRUF\FOH6DIHW\
IDVWHUWKDQFRQGLWLRQVZDUUDQW)DWLJXHDQG GULQNFDQUHGXFH\RXUDELOLW\WRUHVSRQGWR
LQDWWHQWLRQFDQLPSDLU\RXUDELOLW\WRXVHJRRG FKDQJLQJFRQGLWLRQVDQG\RXUUHDFWLRQWLPH
MXGJPHQWDQGULGHVDIHO\ JHWVZRUVHZLWKHYHU\DGGLWLRQDOGULQN'RQ W
GULQNDQGULGHDQGGRQ WOHW\RXUIULHQGVGULQN
DQGULGHHLWKHU
1HYHU&DUU\DSDVVHQJHU
&%56
7KHUHDUHQRKDQGKROGVVHDWRUIRRWUHVWWR .HHS<RXU+RQGDLQ6DIH&RQGLWLRQ
FDUU\DSDVVHQJHU ,W VLPSRUWDQWWRNHHS\RXUPRWRUF\FOHSURSHUO\
PDLQWDLQHGDQGLQVDIHULGLQJFRQGLWLRQ
,QVSHFW\RXUPRWRUF\FOHEHIRUHHYHU\ULGHDQG
SHUIRUPDOOUHFRPPHQGHGPDLQWHQDQFH1HYHU
H[FHHGORDGOLPLWV 2 3 DQGGRQRWPRGLI\
\RXUPRWRUF\FOHRULQVWDOODFFHVVRULHVWKDW
ZRXOGPDNH\RXUPRWRUF\FOHXQVDIH 2 3
&RQWLQXHG
6DIHW\*XLGHOLQHV
DQ\RQHHOVHKDVEHHQLQMXUHGWDNHWLPHWR ,I\RXVPHOODQXQXVXDORGRUFRPLQJIURPWKH
DVVHVVWKHVHYHULW\RIWKHLQMXULHVDQGZKHWKHULW OLWKLXPLRQ OLLRQ EDWWHU\SDUN\RXUPRWRUF\FOH
LVVDIHWRFRQWLQXHULGLQJ&DOOIRUHPHUJHQF\ LQDVDIHSODFHRXWVLGHDQGDZD\IURP
DVVLVWDQFHLIQHHGHG$OVRIROORZDSSOLFDEOHODZV IODPPDEOHREMHFWVWKHQWXUQWKHLJQLWLRQVZLWFK
DQGUHJXODWLRQVLIDQRWKHUSHUVRQRUYHKLFOHLV WRWKH2))SRVLWLRQ+DYH\RXUPRWRUF\FOH
LQYROYHGLQWKHFUDVK LQVSHFWHGE\\RXUGHDOHULPPHGLDWHO\
,I\RXGHFLGHWRFRQWLQXHULGLQJILUVWWXUQWKH
LJQLWLRQVZLWFKWRWKH2))SRVLWLRQDQGHYDOXDWH
WKHFRQGLWLRQRI\RXUPRWRUF\FOH,QVSHFWIRU
IOXLGOHDNVFKHFNWKHWLJKWQHVVRIFULWLFDOQXWV
DQGEROWVDQGFKHFNWKHKDQGOHEDUVFRQWURO
OHYHUVEUDNHVDQGZKHHOV5LGHVORZO\DQG
FDXWLRXVO\
<RXUPRWRUF\FOHPD\KDYHVXIIHUHGGDPDJH
WKDWLVQRWLPPHGLDWHO\DSSDUHQW+DYH\RXU
PRWRUF\FOHWKRURXJKO\FKHFNHGDWDTXDOLILHG
VHUYLFHIDFLOLW\DVVRRQDVSRVVLEOH
6DIHW\*XLGHOLQHV
&DUERQ0RQR[LGH+D]DUG 3:$51,1*
([KDXVWFRQWDLQVSRLVRQRXVFDUERQPRQR[LGHD
0RWRUF\FOH6DIHW\
5XQQLQJWKHHQJLQHRI\RXUPRWRUF\FOH
FRORUOHVVRGRUOHVVJDV%UHDWKLQJFDUERQ
ZKLOHLQDQHQFORVHGRUHYHQSDUWLDOO\
PRQR[LGHFDQFDXVHORVVRIFRQVFLRXVQHVVDQG
PD\OHDGWRGHDWK
HQFORVHGDUHDFDQFDXVHDUDSLGEXLOG
XSRIWR[LFFDUERQPRQR[LGHJDV
,I\RXUXQWKHHQJLQHLQFRQILQHGRUHYHQSDUWO\
HQFORVHGDUHDWKHDLU\RXEUHDWKHFRXOG %UHDWKLQJWKLVFRORUOHVVRGRUOHVVJDV
FRQWDLQDGDQJHURXVDPRXQWRIFDUERQ FDQTXLFNO\FDXVHXQFRQVFLRXVQHVVDQG
PRQR[LGH OHDGWRGHDWK
6DIHW\/DEHOV
6DIHW\/DEHOV ,IDODEHOFRPHVRIIRUEHFRPHVKDUGWRUHDG
FRQWDFW\RXUGHDOHUIRUDUHSODFHPHQW
0RWRUF\FOH6DIHW\
6DIHW\DQGLQIRUPDWLRQODEHOVRQ\RXU
PRWRUF\FOHSURYLGHLPSRUWDQWVDIHW\
LQIRUPDWLRQDQGPD\ZDUQ\RXRISRWHQWLDO
KD]DUGVWKDWFRXOGFDXVHVHULRXVLQMXU\5HDG
WKHVHODEHOVFDUHIXOO\DQGGRQ WUHPRYHWKHP
6DIHW\/DEHOV
0RWRUF\FOH6DIHW\
&%5555$
&%56
&%5555$
&%56
6DIHW\3UHFDXWLRQV
6DIHW\3UHFDXWLRQV 3URWHFWLYH$SSDUHO
&%5555$
0RWRUF\FOH6DIHW\
॥ 5LGHFDXWLRXVO\DQGNHHS\RXUKDQGVRQWKH
0DNHVXUHWKDW\RXDQGDQ\SDVVHQJHUDUH
KDQGOHEDUVDQGIHHWRQWKHIRRWSHJV
ZHDULQJDQDSSURYHGPRWRUF\FOHKHOPHWH\H
॥ &%5555$
SURWHFWLRQDQGKLJKYLVLELOLW\SURWHFWLYH
.HHSSDVVHQJHU·VKDQGVRQWRWKHVHDWVWUDS
FORWKLQJ5LGHGHIHQVLYHO\LQUHVSRQVHWR
RU\RXUZDLVWSDVVHQJHU·VIHHWRQWKH
ZHDWKHUDQGURDGFRQGLWLRQV
IRRWSHJVZKLOHULGLQJ &%56
॥ &%5555$
0DNHVXUHWKDW\RXDUHZHDULQJDQDSSURYHG
$OZD\VFRQVLGHUWKHVDIHW\RI\RXU
PRWRUF\FOHKHOPHWH\HSURWHFWLRQDQGKLJK
SDVVHQJHUDVZHOODVRWKHUGULYHUVDQG
YLVLELOLW\SURWHFWLYHFORWKLQJ5LGHGHIHQVLYHO\LQ
ULGHUV
UHVSRQVHWRZHDWKHUDQGURDGFRQGLWLRQV
&%56
$OZD\VFRQVLGHUWKHVDIHW\RIRWKHUGULYHUV
DQGULGHUV +HOPHW
6KRXOGEHVDIHW\VWDQGDUGFHUWLILHGKLJK
YLVLELOLW\DQGFRUUHFWVL]HIRU\RXUKHDG
॥ 0XVWILWFRPIRUWDEO\EXWVHFXUHO\ZLWKWKH
FKLQVWUDSIDVWHQHG
॥ )DFHVKLHOGZLWKXQREVWUXFWHGILHOGRIYLVLRQ
RURWKHUDSSURYHGH\HSURWHFWLRQ
6DIHW\3UHFDXWLRQV
0RWRUF\FOH6DIHW\
\RXEX\
&%5555$ 1RWZHDULQJDKHOPHWLQFUHDVHVWKH
FKDQFHRIVHULRXVLQMXU\RUGHDWKLQD
3:$51,1* FUDVK
1RWZHDULQJDKHOPHWLQFUHDVHVWKH
FKDQFHRIVHULRXVLQMXU\RUGHDWKLQD 0DNHVXUHWKDW\RXDOZD\VZHDUDQ
FUDVK DSSURYHGKHOPHWDQGSURWHFWLYH
DSSDUHO
0DNHVXUHWKDW\RXDQGDQ\SDVVHQJHU
DOZD\VZHDUDQDSSURYHGKHOPHWDQG *ORYHV
SURWHFWLYHDSSDUHO )XOOILQJHUOHDWKHUJORYHVZLWKKLJKDEUDVLRQ
UHVLVWDQFH
%RRWVRU5LGLQJ6KRHV
6WXUG\ERRWVZLWKQRQVOLSVROHVDQGDQNOH
SURWHFWLRQ
-DFNHWDQG3DQWV
3URWHFWLYHKLJKO\YLVLEOHORQJVOHHYHGMDFNHW
DQGGXUDEOHORQJSDQWVIRUULGLQJ RUD
SURWHFWLYHVXLW
5LGLQJ3UHFDXWLRQV
5LGLQJ3UHFDXWLRQV ॥ ([HUFLVHFDXWLRQRQORZWUDFWLRQVXUIDFHV
u 7KHWLUHVVOLSPRUHHDVLO\RQVXFK
0RWRUF\FOH6DIHW\
%UHDNLQ3HULRG VXUIDFHVDQGEUDNLQJGLVWDQFHVDUH
ORQJHU
'XULQJWKHILUVWPLOHV NP RIUXQQLQJ
॥ $YRLGFRQWLQXRXVEUDNLQJ
IROORZWKHVHJXLGHOLQHVWRHQVXUH\RXU
u 5HSHDWHGEUDNLQJVXFKDVZKHQ
PRWRUF\FOH VIXWXUHUHOLDELOLW\DQGSHUIRUPDQFH
GHVFHQGLQJORQJVWHHSVORSHVFDQ
॥ $YRLGIXOOWKURWWOHVWDUWVDQGUDSLG
VHULRXVO\RYHUKHDWWKHEUDNHVUHGXFLQJ
DFFHOHUDWLRQ
WKHLUHIIHFWLYHQHVV8VHHQJLQHEUDNLQJ
॥ $YRLGKDUGEUDNLQJDQGUDSLGGRZQVKLIWV
ZLWKLQWHUPLWWHQWXVHRIWKHEUDNHVWR
॥ 5LGHFRQVHUYDWLYHO\
UHGXFHVSHHG
%UDNHV ॥ )RUIXOOEUDNLQJHIIHFWLYHQHVVRSHUDWHERWK
WKHIURQWDQGUHDUEUDNHVWRJHWKHU
2EVHUYHWKHIROORZLQJJXLGHOLQHV
॥ $YRLGH[FHVVLYHO\KDUGEUDNLQJDQG
GRZQVKLIWLQJ
u 6XGGHQEUDNLQJFDQUHGXFHWKH
PRWRUF\FOH VVWDELOLW\
u :KHUHSRVVLEOHUHGXFHVSHHGEHIRUH
WXUQLQJRWKHUZLVH\RXULVNVOLGLQJRXW
5LGLQJ3UHFDXWLRQV
0RWRUF\FOH6DIHW\
7KLVPRGHOLVHTXLSSHGZLWKDQ$QWLORFN%UDNH GRZQZKHQ\RXUHOHDVHWKHWKURWWOH)RUIXUWKHU
6\VWHP $%6 GHVLJQHGWRKHOSSUHYHQWWKH VORZLQJDFWLRQGRZQVKLIWWRDORZHUJHDU8VH
EUDNHVIURPORFNLQJXSGXULQJKDUGEUDNLQJ HQJLQHEUDNLQJZLWKLQWHUPLWWHQWXVHRIWKH
7KH$%6IXQFWLRQVZLWKLQIRUPDWLRQSURYLGHGE\ EUDNHVWRUHGXFHVSHHGZKHQGHVFHQGLQJORQJ
WKH,08 ,QHUWLD0HDVXUHPHQW8QLW VWHHSVORSHV
॥ $%6GRHVQRWUHGXFHEUDNLQJGLVWDQFH,Q
FHUWDLQFLUFXPVWDQFHV$%6PD\UHVXOWLQD
:HWRU5DLQ\&RQGLWLRQV
5RDGVXUIDFHVDUHVOLSSHU\ZKHQZHWDQGZHW
ORQJHUVWRSSLQJGLVWDQFH
EUDNHVIXUWKHUUHGXFHEUDNLQJHIILFLHQF\
॥ $%6GRHVQRWIXQFWLRQDWVSHHGVEHORZ
([HUFLVHH[WUDFDXWLRQZKHQEUDNLQJLQZHW
PSK NPK
FRQGLWLRQV
॥ 7KHEUDNHOHYHUDQGSHGDOPD\UHFRLOVOLJKWO\
,IWKHEUDNHVJHWZHWDSSO\WKHEUDNHVZKLOH
ZKHQDSSO\LQJWKHEUDNHV7KLVLVQRUPDO
ULGLQJDWORZVSHHGWRKHOSWKHPGU\
॥ $OZD\VXVHWKHUHFRPPHQGHGIURQWUHDU
WLUHVDQGVSURFNHWVWRHQVXUHFRUUHFW$%6
RSHUDWLRQ
&RQWLQXHG
5LGLQJ3UHFDXWLRQV
3DUNLQJ 6ORZO\OHDQWKHPRWRUF\FOHWRWKHOHIWXQWLOLWV
ZHLJKWUHVWVRQWKHVLGHVWDQG
॥ 3DUNRQDILUPOHYHOVXUIDFH
0RWRUF\FOH6DIHW\
7XUQWKHKDQGOHEDUVIXOO\WRWKHOHIW
॥ ,I\RXPXVWSDUNRQDVOLJKWLQFOLQHRUORRVH
u 7XUQLQJWKHKDQGOHEDUVWRWKHULJKW
VXUIDFHSDUNVRWKDWWKHPRWRUF\FOHFDQQRW
UHGXFHVVWDELOLW\DQGPD\FDXVHWKH
PRYHRUIDOORYHU
PRWRUF\FOHWRIDOO
॥ 0DNHVXUHWKDWKLJKWHPSHUDWXUHSDUWV
7XUQWKHLJQLWLRQVZLWFKWRWKH/2&.
FDQQRWFRPHLQWRFRQWDFWZLWKIODPPDEOH
SRVLWLRQDQGUHPRYHWKHNH\2 3
PDWHULDOV
॥ 'RQRWWRXFKWKHHQJLQHPXIIOHUEUDNHV 5HIXHOLQJDQG)XHO*XLGHOLQHV
DQGRWKHUKLJKWHPSHUDWXUHSDUWVXQWLOWKH\
)ROORZWKHVHJXLGHOLQHVWRSURWHFWWKHHQJLQH
FRROGRZQ
IXHOV\VWHPDQGFDWDO\WLFFRQYHUWHU
॥ 7RUHGXFHWKHOLNHOLKRRGRIWKHIWDOZD\VORFN
॥ 8VHRQO\XQOHDGHGJDVROLQH
WKHKDQGOHEDUVDQGUHPRYHWKHNH\ZKHQ
॥ 8VHUHFRPPHQGHGRFWDQHQXPEHU8VLQJ
OHDYLQJWKHPRWRUF\FOHXQDWWHQGHG
ORZHURFWDQHJDVROLQHZLOOUHVXOWLQ
8VHRIDQDQWLWKHIWGHYLFHLVDOVR
GHFUHDVHGHQJLQHSHUIRUPDQFH
UHFRPPHQGHG
॥ 'RQRWXVHIXHOVFRQWDLQLQJDKLJK
3DUNLQJZLWKWKH6LGH6WDQG FRQFHQWUDWLRQRIDOFRKRO2 3
6WRSWKHHQJLQH ॥ 'RQRWXVHVWDOHRUFRQWDPLQDWHGJDVROLQH
3XVKWKHVLGHVWDQGGRZQ RUDQRLOJDVROLQHPL[WXUH
॥ $YRLGJHWWLQJGLUWRUZDWHULQWKHIXHOWDQN
5LGLQJ3UHFDXWLRQV
+RQGDVHOHFWDEOHWRUTXHFRQWURO 7RUTXH&RQWUROPD\QRWFRPSHQVDWHIRUURXJK
URDGFRQGLWLRQVRUUDSLGWKURWWOHRSHUDWLRQ
:KHQWKH+RQGDVHOHFWDEOHWRUTXHFRQWURO
0RWRUF\FOH6DIHW\
$OZD\VFRQVLGHUURDGDQGZHDWKHUFRQGLWLRQV
7RUTXH&RQWURO GHWHFWVUHDUZKHHOVSLQGXULQJ
DVZHOODV\RXUVNLOOVDQGFRQGLWLRQZKHQ
DFFHOHUDWLRQWKHV\VWHPZLOOOLPLWWKHDPRXQWRI
DSSO\LQJWKURWWOH
WRUTXHDSSOLHGWRWKHUHDUZKHHOEDVHGRQWKH
,I\RXUPRWRUF\FOHJHWVVWXFNLQPXGVQRZRU
7RUTXH&RQWUROOHYHOVHOHFWHG
VDQGLWPD\EHHDVLHUWRIUHHLWZLWKWKH7RUTXH
$GGLWLRQDOO\WKHV\VWHPHDVHWKHUDSLGPRWLRQ
&RQWURO 7YDOXH WHPSRUDULO\FKDQJHGWROHYHO
GXULQJWKHZKHHOLHZKHQDFFHOHUDWLQJEDVHGRQ
WKH7RUTXH&RQWUROOHYHOVHOHFWHG
7HPSRUDULO\FKDQJLQJWKH7RUTXH&RQWUROOHYHO
WRDOVRPD\KHOS\RXPDLQWDLQFRQWURODQG
7RUTXH&RQWUROZLOODOORZVRPHZKHHOVSLQ
EDODQFHZKHQULGLQJRQRIIURDGWHUUDLQ
GXULQJDFFHOHUDWLRQDWWKHORZHU7RUTXH&RQWURO
$OZD\VXVHWKHUHFRPPHQGHGWLUHVDQG
OHYHOVVHWWLQJV6HOHFWDOHYHOWKDWLVDSSURSULDWH
VSURFNHWVWRHQVXUHFRUUHFW7RUTXH&RQWURO
IRU\RXUVNLOODQGULGLQJFRQGLWLRQV
RSHUDWLRQ
7RUTXH&RQWUROGRHVQRWZRUNGXULQJ
GHFHOHUDWLRQDQGZLOOQRWSUHYHQWWKHUHDUZKHHO
IURPVNLGGLQJGXHWRHQJLQHEUDNLQJ'RQRW
FORVHWKHWKURWWOHVXGGHQO\HVSHFLDOO\ZKHQ
ULGLQJRQVOLSSHU\VXUIDFHV
$FFHVVRULHV 0RGLILFDWLRQV
$FFHVVRULHV 3:$51,1*
0RGLILFDWLRQV
0RWRUF\FOH6DIHW\
,PSURSHUDFFHVVRULHVRUPRGLILFDWLRQV
:HVWURQJO\DGYLVHWKDW\RXGRQRWDGGDQ\ FDQFDXVHDFUDVKLQZKLFK\RXFDQEH
DFFHVVRULHVWKDWZHUHQRWVSHFLILFDOO\GHVLJQHG VHULRXVO\KXUWRUNLOOHG
RUDSSURYHGIRU\RXUPRWRUF\FOHE\+RQGDRU
PDNHPRGLILFDWLRQVWR\RXUPRWRUF\FOHIURPLWV )ROORZDOOLQVWUXFWLRQVLQWKLVRZQHU V
RULJLQDOGHVLJQ'RLQJVRFDQPDNHLWXQVDIH PDQXDOUHJDUGLQJDFFHVVRULHVDQG
0RGLI\LQJ\RXUPRWRUF\FOHPD\DOVRYRLG\RXU PRGLILFDWLRQV
ZDUUDQW\DQGPDNH\RXUPRWRUF\FOHLOOHJDOWR
RSHUDWHRQSXEOLFURDGVDQGKLJKZD\V%HIRUH 'RQRWSXOODWUDLOHUZLWKRUDWWDFKDVLGHFDUWR
GHFLGLQJWRLQVWDOODFFHVVRULHVRQ\RXU \RXUPRWRUF\FOH<RXUPRWRUF\FOHZDVQRW
PRWRUF\FOHEHFHUWDLQWKHPRGLILFDWLRQLVVDIH GHVLJQHGIRUWKHVHDWWDFKPHQWVDQGWKHLUXVH
DQGOHJDO FDQVHULRXVO\LPSDLU\RXUPRWRUF\FOH VKDQGOLQJ
&%56
'RQRWDWWHPSWPRGLI\WKHPRWRUF\FOHWRFDUU\
DSDVVHQJHU7KHVXEIUDPHZDVQRWGHVLJQHGWR
FDUU\WKHDGGLWLRQDOZHLJKWRIDSDVVHQJHU
/RDGLQJ
/RDGLQJ &%5555$
3:$51,1*
0RWRUF\FOH6DIHW\
॥ &%56
1HYHUFDUU\DSDVVHQJHU<RXUPRWRUF\FOH
2YHUORDGLQJRULPSURSHUORDGLQJFDQ
ZDVQRWGHVLJQHGWRFDUU\DSDVVHQJHU
॥ &DUU\LQJH[WUDZHLJKWDIIHFWV\RXU FDXVHDFUDVKDQG\RXFDQEHVHULRXVO\
PRWRUF\FOH VKDQGOLQJEUDNLQJDQGVWDELOLW\ KXUWRUNLOOHG
$OZD\VULGHDWDVDIHVSHHGIRUWKHORDG\RX
DUHFDUU\LQJ )ROORZDOOORDGOLPLWVDQGRWKHUORDGLQJ
॥ $YRLGFDUU\LQJDQH[FHVVLYHORDGDQGNHHS JXLGHOLQHVLQWKLVPDQXDO
ZLWKLQVSHFLILHGORDGOLPLWV
0D[LPXPZHLJKWFDSDFLW\2 3 &%56
॥ 7LHDOOOXJJDJHVHFXUHO\HYHQO\EDODQFHG
DQGFORVHWRWKHFHQWHURIWKHPRWRUF\FOH 3:$51,1*
॥ 'RQRWSODFHREMHFWVQHDUWKHOLJKWVRUWKH
PXIIOHU 2YHUORDGLQJLPSURSHUORDGLQJRU
FDUU\LQJDSDVVHQJHUFDQFDXVHDFUDVK
DQG\RXFDQEHVHULRXVO\KXUWRUNLOOHG
)ROORZDOOORDGOLPLWVDQGRWKHUORDGLQJ
JXLGHOLQHVLQWKLVPDQXDO
3DUWV/RFDWLRQ
&%5555$ 7RRONLW 3
'RFXPHQWEDJ 3
0DLQIXVH),IXVH 3
2SHUDWLRQ*XLGH
)XVHER[ 3
%DWWHU\ 3
)URQWEUDNHIOXLGUHVHUYRLU
3
)URQWEUDNHOHYHU 3
7KURWWOHJULS 3
5HDUEUDNHIOXLGUHVHUYRLU
3
(QJLQHRLOGUDLQEROW 3
(QJLQHRLOILOWHU 3
)URQWVXVSHQVLRQVSULQJ
SUHORDGDGMXVWHU 3
8QGHUFRZO 3
(QJLQHRLOGLSVWLFN 3
(QJLQHRLOILOOFDS 3
5HDUEUDNHSHGDO
&OXWFKOHYHU 3
)URQWVXVSHQVLRQUHERXQGGDPSLQJFRPSUHVVLRQGDPSLQJ
DGMXVWHU 3 3
2SHUDWLRQ*XLGH
)XHOILOOFDS 3
)URQWVHDW 3
5HDUVHDW 3
5HDUVXVSHQVLRQ
FRPSUHVVLRQGDPSLQJ
DGMXVWHU 3
5HDUVXVSHQVLRQUHERXQG
GDPSLQJDGMXVWHU 3
&RRODQWUHVHUYHWDQN
3
5HDUVXVSHQVLRQVSULQJ
SUHORDGDGMXVWHU 3
'ULYHFKDLQ 3
6KLIWOHYHU 3
6LGHVWDQG 3
)URQWVXVSHQVLRQVSULQJSUHORDGDGMXVWHU 3
&RQWLQXHG
3DUWV/RFDWLRQ &RQWLQXHG
&%56 7RRONLW 3
'RFXPHQWEDJ 3
0DLQIXVH),IXVH 3
2SHUDWLRQ*XLGH
)XVHER[ 3
%DWWHU\ 3
)URQWEUDNHIOXLGUHVHUYRLU
3
)URQWEUDNHOHYHU 3
7KURWWOHJULS 3
5HDUEUDNHIOXLGUHVHUYRLU
3
(QJLQHRLOGUDLQEROW 3
(QJLQHRLOILOWHU 3
8QGHUFRZO 3
(QJLQHRLOGLSVWLFN 3
(QJLQHRLOILOOFDS 3
5HDUEUDNHSHGDO
&OXWFKOHYHU 3
)URQWVXVSHQVLRQVSULQJSUHORDGDGMXVWHU 3
2SHUDWLRQ*XLGH
)XHOILOOFDS 3
)URQWVHDW 3
6LQJOHVHDWFRZO 3
&RRODQWUHVHUYHWDQN
3
5HDUVXVSHQVLRQVSULQJ
SUHORDGDGMXVWHU 3
'ULYHFKDLQ 3
6KLIWOHYHU 3
6LGHVWDQG 3
,QVWUXPHQWV
6WUHHWPRGH
'LVSOD\&KHFN
:KHQWKHLJQLWLRQVZLWFKLVWXUQHGWRWKH21SRVLWLRQWKHRSHQLQJV\PEROZLOOVKRZRQWKH
GLVSOD\,IWKHGLVSOD\LWVHOIGRHVQRWVKRZVZKHQLWVKRXOGKDYH\RXUGHDOHUFKHFNIRU
SUREOHPV
<RXFDQVHOHFWWKHVWUHHWPRGHRUFLUFXLWPRGHGLVSOD\
7RFKDQJHWKHFLUFXLWPRGH 3
*HDUSRVLWLRQLQGLFDWRU
6KRZVVWWRWKJHDUSRVLWLRQV´µDSSHDUV
&%5555$
2SHUDWLRQ*XLGH
ZKHQWKHWUDQVPLVVLRQLVQRWVKLIWHGSURSHUO\
4XLFN6KLIWHULQGLFDWRU
'LVSOD\VWKHFXUUHQWVWDWXVRIWKH4XLFN6KLIWHU
4XLFN6KLIWHUV\VWHPLVGLVDEOHG
4XLFN6KLIWHUXSVKLIWLQJLVHQDEOHG
&%56
4XLFN6KLIWHUGRZQVKLIWLQJLV
HQDEOHG
4XLFN6KLIWHUXSVKLIWLQJDQG
QS OFF
P
1
T
2
EB S
3 A1 GRZQVKLIWLQJDUHERWKHQDEOHG
48,&.6+,)7(5 3 3
3
0XOWLLQIRUPDWLRQGLVSOD\ 3
&RQWLQXHG
,QVWUXPHQWV &RQWLQXHG
&LUFXLWPRGH
7R&KDQJHWRWKHFLUFXLWPRGH
॥ 3UHVVDQGKROGWKH /$3 EXWWRQZLWK\RXUPRWRUF\FOHVWRSSHG
2SHUDWLRQ*XLGH
/$3 EXWWRQ
/DSWLPHU
3
'LVSOD\&KHFN
:KHQWKHLJQLWLRQVZLWFKLVWXUQHGWRWKH21SRVLWLRQWKHRSHQLQJV\PEROZLOOVKRZRQWKH
GLVSOD\,IWKHGLVSOD\LWVHOIGRHVQRWVKRZVZKHQLWVKRXOGKDYH\RXUGHDOHUFKHFNIRU
SUREOHPV
0XOWLLQIRUPDWLRQGLVSOD\
0XOWLLQIRUPDWLRQGLVSOD\FDQGLVSOD\WKHFRRODQWWHPSHUDWXUHJDXJHULGLQJPRGHV,1)2
,1)2DQG,1)2GLVSOD\V
2SHUDWLRQ*XLGH
&RRODQWWHPSHUDWXUHJDXJH
&%5555$ 3
,1)2GLVSOD\ 3
,1)2GLVSOD\ 3
,1)2GLVSOD\ 3
5LGLQJPRGH 3
&RRODQWWHPSHUDWXUHJDXJH
&%56 3
,1)2GLVSOD\ 3
,1)2GLVSOD\ 3
,1)2GLVSOD\ 3
<RXFDQFKDQJHWKHULGLQJPRGHV,1)2,1)2DQG,1)2GLVSOD\VRIWKH0XOWL
LQIRUPDWLRQGLVSOD\
7RVZLWFKWKHPXOWLLQIRUPDWLRQGLVSOD\ 3
&RQWLQXHG
,QVWUXPHQWV &RQWLQXHG
&RRODQWWHPSHUDWXUHJDXJH
'LVSOD\UDQJH) & WR) &
॥ ) & RUOHVVµµLVGLVSOD\HG
2SHUDWLRQ*XLGH
3RSXSLQIRUPDWLRQ
,QWKHIROORZLQJFDVHVWKH,1)2GLVSOD\RUWKH,1)2GLVSOD\DQGWKHFRRODQWWHPSHUDWXUH
JDXJHFKDQJHWRDSRSXSLQIRUPDWLRQGLVSOD\
॥ :KHQDQLQVSHFWLRQWLPHRI\RXUPRWRUF\FOHLVDSSURDFKLQJ
॥ :KHQ\RXUPRWRUF\FOHKDVKHOSIXOLQIRUPDWLRQ
॥ :KHQ\RXUPRWRUF\FOHKDVDSUREOHPZLWKWKH3*0),V\VWHP
॥ &%56
:KHQ\RXUPRWRUF\FOHKDVDSUREOHPZLWKWKHg+/,166PDUW(&V\VWHP
,QIRUPDWLRQRIWKHSRSXSLQIRUPDWLRQ 3
7R6ZLWFKWKHPXOWLLQIRUPDWLRQGLVSOD\ 6(/ 83 EXWWRQ
7RVHOHFWWKHGLVSOD\DUHDUHSHDWHGO\SUHVVWKH
02'( EXWWRQ
2SHUDWLRQ*XLGH
u &DQQRWVHOHFWWKH,1)2GLVSOD\ZKLOHSRSXS
LQIRUPDWLRQGLVSOD\HG 3
,IWKH 02'( EXWWRQLVQRWSUHVVHGZLWKLQ
6(/ '2:1 02'( EXWWRQ
VHFRQGVWKHGLVSOD\UHWXUQVWRWKHULGLQJPRGH
EXWWRQ
GLVSOD\
5LGLQJPRGH 3 ,1)2GLVSOD\ 3
&RQWLQXHG
,QVWUXPHQWV &RQWLQXHG
,1)2GLVSOD\
<RXFDQVHOHFWWKHIROORZLQJ
ܬ2GRPHWHU>727$/@ 727$/ 3
2SHUDWLRQ*XLGH
ܬ7ULSPHWHU>75,3$%@
&KDQJLQJWKH,1)2GLVSOD\
6HOHFWWKH,1)2GLVSOD\ 3
3UHVVWKH 6(/ XS RU 6(/ GRZQ
EXWWRQXQWLOWKHGHVLUHGLQGLFDWLRQLV 75,3$ 3
GLVSOD\HG
3UHVVWKH 02'( EXWWRQ7KH,1)2GLVSOD\
LVVHWDQGWKHQWKHGLVSOD\PRYHVWRWKH
,1)2GLVSOD\ 75,3% 3
2GRPHWHU>727$/@ 7ULSPHWHU$%>75,3$%@
7RWDOGLVWDQFHULGGHQ 'LVWDQFHULGGHQVLQFHWKHWULSPHWHUZDVUHVHW
2SHUDWLRQ*XLGH
:KHQ´µLVGLVSOD\HGJRWR\RXUGHDOHU :KHQ´µLVGLVSOD\HGJRWR\RXUGHDOHU
IRUVHUYLFH IRUVHUYLFH
7RUHVHWWKHWULSPHWHU 3
&RQWLQXHG
,QVWUXPHQWV &RQWLQXHG
7RUHVHWWKHWULSPHWHUDQGWULSPHWHU$ 7RUHVHWWKHWULSPHWHU%SUHVVDQGKROGWKH
IXHOFRQVXPSWLRQ 02'( EXWWRQZLWKWKHWULSPHWHU%GLVSOD\HG
7RUHVHWWULSPHWHU$DQGWULSPHWHU$IXHO
2SHUDWLRQ*XLGH
FRQVXPSWLRQWRJHWKHUSUHVVDQGKROGWKH 7ULSPHWHU%
02'( EXWWRQZLWKWKHWULSPHWHU$RU
WULSPHWHU$IXHOFRQVXPSWLRQGLVSOD\HG
7ULSPHWHU$ 7ULSPHWHU$IXHO
FRQVXPSWLRQ
RU
RU
,1)2GLVSOD\
<RXFDQVHOHFWWKHIROORZLQJ
ܬ1XPHULFDOWDFKRPHWHUGLVSOD\>5(9@
2SHUDWLRQ*XLGH
& ܬXUUHQWIXHOPLOHDJH>,167&216@
ܬ$YHUDJHIXHOPLOHDJH>$9(&216@
ܬ7ULSPHWHU$IXHOFRQVXPSWLRQ>75,3$&216@
ܬ$YHUDJHVSHHG>$9*63'@
( ܬODSVHGWLPH>(/$36('@
ܬ$YDLODEOHGULYLQJGLVWDQFH>5$1*(@
ܬ$PRXQWRIUHPDLQLQJIXHO>5(0$,1@
&KDQJLQJWKH,1)2GLVSOD\
6HOHFWWKH,1)2GLVSOD\ 3
3UHVVWKH 6(/ XS RU 6(/ GRZQ EXWWRQXQWLOWKHGHVLUHGGLVSOD\LVGLVSOD\HG
3UHVVWKH 02'( EXWWRQ7KH,1)2GLVSOD\LVVHWDQGGLVSOD\PRYHVWRWKH,1)2GLVSOD\
&RQWLQXHG
,QVWUXPHQWV &RQWLQXHG
1XPHULFDOWDFKRPHWHUGLVSOD\ 3
&XUUHQWIXHOPLOHDJH 3
2SHUDWLRQ*XLGH
$YHUDJHIXHOPLOHDJH 3
7ULSPHWHU$IXHOFRQVXPSWLRQ 3
$YHUDJHVSHHG 3
(ODSVHGWLPH 3
$YDLODEOHGULYLQJ
GLVWDQFH 3 3UHVVWKH 6(/
$PRXQWRIUHPDLQLQJ XS EXWWRQ
IXHO 3 3UHVVWKH 6(/
2QO\ZKHQUHVHUYHIXHOPRGH 3
GRZQ EXWWRQ
:KHQWKHORZIXHOLQGLFDWRUOLJKWVDQGWKHORZIXHOSRSXSLQIRUPDWLRQDSSHDU,1)2GLVSOD\
ZLOODXWRPDWLFDOO\VZLWFKHVWRWKHDPRXQWRIUHPDLQLQJIXHOGLVSOD\
1XPHULFDOWDFKRPHWHU'LVSOD\>5(9@ &XUUHQWIXHOPLOHDJH>,167&216@
'LVSOD\VHQJLQHUHYROXWLRQVSHUPLQXWHV 'LVSOD\VWKHFXUUHQWLQVWDQWIXHOPLOHDJH
'LVSOD\UDQJHWRUPLQ USP 'LVSOD\UDQJHWR03* PLOH//
2SHUDWLRQ*XLGH
॥ $ERYHUPLQ USP ´µLV NPRUNP/
GLVSOD\HG ॥ :KHQ\RXUVSHHGLVOHVVWKDQPSK
NPK ´µLVGLVSOD\HG
॥ $ERYH03* PLOH/RUNP/ ´µLV
GLVSOD\HG
॥ $ERYH/NP´µLVGLVSOD\HG
:KHQ´µLVGLVSOD\HGH[FHSWIRUWKH
DERYHPHQWLRQHGFDVHVJRWR\RXUGHDOHU
IRUVHUYLFH
&RQWLQXHG
,QVWUXPHQWV &RQWLQXHG
$YHUDJHIXHOPLOHDJH>$9*&216@ 7RUHVHWWKHDYHUDJHIXHOPLOHDJH
'LVSOD\VWKHDYHUDJHIXHOPLOHDJHVLQFHWKH 3UHVVDQGKROGWKH 02'( EXWWRQZLWKWKH
DYHUDJHIXHOPLOHDJHZDVUHVHW DYHUDJHIXHOPLOHDJHGLVSOD\HG
2SHUDWLRQ*XLGH
'LVSOD\UDQJHWR03* PLOH//
NPRUNP/ $YHUDJHIXHO
॥ $ERYH03* PLOH/RUNP/ ´µ PLOHDJH
LVGLVSOD\HG
॥ $ERYH/NP´µLVGLVSOD\HG
॥ :KHQWKHDYHUDJHIXHOPLOHDJHLVUHVHW
´µLVGLVSOD\HG
:KHQ´µLVGLVSOD\HGH[FHSWIRUWKH
DERYHPHQWLRQHGFDVHVJRWR\RXUGHDOHU
IRUVHUYLFH
7ULSPHWHU$IXHOFRQVXPSWLRQ>75,3$ $YHUDJH6SHHG>$9*63'@
&216@ 'LVSOD\VDYHUDJHVSHHGVLQFHWKHHQJLQHZDV
'LVSOD\VWKHWULSPHWHU$IXHOFRQVXPSWLRQ VWDUWHG
2SHUDWLRQ*XLGH
VLQFHWKHWULSPHWHU$ZDVUHVHW 'LVSOD\UDQJHWRPSK WRNPK
'LVSOD\UDQJHWR*$/ JDOORQ RU ॥ ,QLWLDOGLVSOD\´µLVGLVSOD\HG
WR/ OLWHUV ॥ :KHQ\RXUPRWRUF\FOHKDVWUDYHOHGOHVV
॥ $ERYH*$/ JDOORQ RU/ OLWHUV WKDQPLOH NP VLQFHWKHHQJLQH
LVGLVSOD\HG ZDVVWDUWHG´µLVGLVSOD\HG
॥ :KHQWKHWULSPHWHU$IXHOFRQVXPSWLRQLV ॥ :KHQ\RXUPRWRUF\FOHRSHUDWLQJWLPHLV
UHVHW´µLVGLVSOD\HG OHVVWKDQVHFRQGVVLQFHWKHHQJLQHZDV
VWDUWHG´µLVGLVSOD\HG
:KHQ´µLVGLVSOD\HGH[FHSWIRUWKH
DERYHPHQWLRQHGFDVHVJRWR\RXUGHDOHU :KHQ´µLVGLVSOD\HGH[FHSWIRUWKHDERYH
IRUVHUYLFH PHQWLRQHGFDVHVJRWR\RXUGHDOHUIRU
7RUHVHWWKHWULSPHWHU$IXHO VHUYLFH
FRQVXPSWLRQ 3
&RQWLQXHG
,QVWUXPHQWV &RQWLQXHG
(ODSVHGWLPH>(/$36('@ $YDLODEOHGULYLQJGLVWDQFH>5$1*(@
'LVSOD\VRSHUDWLQJWLPHVLQFHWKHHQJLQHZDV 2QO\UHVHUYHIXHOPRGH
VWDUWHG :KHQWKHORZIXHOLQGLFDWRUOLJKWVDQGWKH
2SHUDWLRQ*XLGH
:KHQ´µLVGLVSOD\HGH[FHSWIRUWKHDERYH
PHQWLRQHGFDVHVJRWR\RXUGHDOHUIRU
VHUYLFH
$PRXQWRIUHPDLQLQJIXHO>5(0$,1@
2QO\UHVHUYHIXHOPRGH
:KHQWKHORZIXHOLQGLFDWRUOLJKWVDQGWKH
2SHUDWLRQ*XLGH
ORZIXHOSRSXSLQIRUPDWLRQDSSHDUVWKH
HVWLPDWHGDPRXQWRIUHPDLQLQJIXHOFDQEH
VHOHFWHG
'LVSOD\UDQJHWR*$/ JDOORQ RU
WR/ OLWHUV
॥ %HORZ*$/ / ´µLVGLVSOD\HG
7KHDPRXQWRIUHPDLQLQJIXHOLVFDOFXODWHG
EDVHGRQWKHGULYLQJVWDWHV
7KHLQGLFDWHGDPRXQWRIUHPDLQLQJIXHOPD\
EHGLIIHUHQWIURPWKHDFWXDODPRXQW
:KHQ´µLVGLVSOD\HGH[FHSWIRUWKHDERYH
PHQWLRQHGFDVHVJRWR\RXUGHDOHUIRU
VHUYLFH
&RQWLQXHG
,QVWUXPHQWV &RQWLQXHG
5HVHUYH)XHO0RGH /RZIXHOSRSXSLQIRUPDWLRQ
:KHQWKHORZIXHOLQGLFDWRUOLJKWVDQGWKH
ORZIXHOSRSXSLQIRUPDWLRQDSSHDUVWKH
2SHUDWLRQ*XLGH
DYDLODEOHGULYLQJGLVWDQFHLVLQGLFDWHGDQG
WKHDPRXQWRIUHPDLQLQJIXHOGLVSOD\FDQEH
VHOHFWHG
<RXVKRXOGUHILOOWKHWDQNDVVRRQDVSRVVLEOH
5HPDLQLQJIXHODPRXQWWXUQHGWRWKHUHVHUYH $YDLODEOHGULYLQJ
IXHOPRGH /RZIXHOLQGLFDWRU GLVWDQFH
86JDO /
$IWHUUHIXHOLQJPRUHWKDQWKHUHVHUYH
DPRXQWWKHGLVSOD\UHWXUQVWRQRUPDOZKHQ
WKHLJQLWLRQVZLWFKKDVEHHQ21SRVLWLRQIRU
DERXWDPLQXWH
,1)2GLVSOD\ &KDQJLQJWKH,1)2GLVSOD\
<RXFDQVHOHFWWKHIROORZLQJ 6HOHFWWKH,1)2GLVSOD\ 3
3UHVVWKH 6(/ XS RU 6(/ GRZQ
& ܬ%5/RJR
EXWWRQXQWLOWKHGHVLUHGGLVSOD\LVGLVSOD\HG
2SHUDWLRQ*XLGH
ܬ6KLIWLQGLFDWRUVHWYDOXH>5(9,1'1(@
3UHVVWKH 02'( EXWWRQ7KH,1)2GLVSOD\
ܬ7KURWWOHJULSDQJOH>*5,3$1*/(@ LVVHWDQGWKHQWKHGLVSOD\PRYHVWRWKH
ܬ%DWWHU\YROWDJH>92/7$*(@ ULGLQJPRGHGLVSOD\
' ܬDWH>'$7(@
ܬ8VHUOHWWHU
ܬ%ODQNGLVSOD\
6KLIWLQGLFDWRUVHWYDOXH>5(9,1'1(@ :KHQ´µLVGLVSOD\HGJRWR\RXUGHDOHUIRU
'LVSOD\VWKHVKLIWLQGLFDWRUVHWYDOXH VHUYLFH
'LVSOD\UDQJH2))RUWRUPLQ
%DWWHU\YROWDJH>92/7$*(@
'LVSOD\VWKHFXUUHQWYROWDJH
7RVHWWKHVKLIWLQGLFDWRU 3
'DWH>'$7(@ 8VHUOHWWHU
'LVSOD\VWKHWRGD\ VGDWH 'LVSOD\VWKHFKDUDFWHUVRIXVHU VFKRLFH
'LVSOD\UDQJH
2SHUDWLRQ*XLGH
'D\RIWKHZHHN021WR681
'$<WR
0RQWK-$1WR'(& 7RVHWWKH86(5/(77(5 3
<HDUWR
%ODQNGLVSOD\
'LVSOD\WKHEODQN
7RVHWWKH'DWH 3
&RQWLQXHG
,QVWUXPHQWV &RQWLQXHG
6HWWLQJPRGH ॥ *(1(5$/ 3
<RXFDQSHUIRUPWKHIROORZLQJ u 6HWWLQJWKHGDWHDQGFORFN
॥ )81&7,21 3 u 6HWWLQJHDFKPHWHUXQLW
u 5HVHWWLQJWRIDFWRU\GHIDXOWVHWWLQJV
2SHUDWLRQ*XLGH
u &%56
6HWWLQJWKH4XLFN6KLIWHU ॥ 6(59,&( 3
u &%56 u &KHFNLQJWKHQH[WLQVSHFWLRQVFKHGXOH
6HWWLQJWKHVXVSHQVLRQ u &%56
॥ /$37,0( 3 6863(16,21
u &KHFNLQJWKHODSWLPH (48,30(17LVGLVSOD\HGEXWQRW
u 5HVHWWLQJWKHODSWLPH VHOHFWDEOH
॥ ',63/$< 3 u &%56
u &KDQJLQJWKHGLVSOD\PRGH 4XLFN6KLIWHU
u 6HWWLQJWKHVKLIWLQGLFDWRU ,1,7,$/,=(DQG(48,30(17DUH
u 6HWWLQJWKHEDFNOLJKWEULJKWQHVV GLVSOD\HGEXWQRWVHOHFWDEOH
u 6HWWLQJWKHEDFNJURXQG u &KHFNLQJWKHFXUUHQWSUREOHPZLWKWKH
u 6HWWLQJWKHXVHUOHWWHU 3*0),V\VWHP
&%56
u 6HWWLQJWKHIDYRULWH
&KHFNLQJWKHFXUUHQWSUREOHPZLWKWKH
g+/,166PDUW(&V\VWHP
u ´632576.,7(&886$*(µLVGLVSOD\HG
EXWQRWXVDEOH
॥ 632576.,7 1RWVHOHFWDEOH
7R6KLIWWRWKH6HWWLQJ0RGH 6HOHFWDPHQXE\SUHVVLQJWKH6(/ XS RU
3UHVVDQGKROGWKH 02'( EXWWRQDQG 6(/ 6(/ GRZQ EXWWRQDQGSUHVVWKH 02'(
XS RU 6(/ GRZQ EXWWRQXQWLOPDLQ EXWWRQ
2SHUDWLRQ*XLGH
PHQXVFUHHQLVGLVSOD\HGZLWK\RXU u 3UHVVDQGKROGWKH6(/ XS RU6(/
PRWRUF\FOHVWRSSHG GRZQ EXWWRQWRPRYHWKHPHQXTXLFNO\
0DLQPHQXVFUHHQ
&RQWLQXHG
,QVWUXPHQWV &RQWLQXHG
2UGLQDU\GLVSOD\ 3UHVVWKH 02'( EXWWRQ
3UHVVDQGKROGWKH 02'( EXWWRQ
DQG 6(/ XS RU 6(/ GRZQ
2SHUDWLRQ*XLGH
7R(QGWKH6HWWLQJ
',63/$< 3
6HOHFWWKH´(;,7µPHQXRQWKHPDLQPHQX
VFUHHQRUSUHVVDQGKROGWKH 02'( EXWWRQ
*(1(5$/ 3
DQG 6(/ XS RU 6(/ GRZQ EXWWRQ
$OVRWKHVHWWLQJPRGHLVHQGHGZKHQ\RXU
6(59,&( 3 PRWRUF\FOHVSHHGUHDFKHVDSSUR[LPDWHO\
NPK PSK
632576.,7 &DQQRWVHOHFW u 3UHVVDQGKROGWKH 02'( EXWWRQDQG 6(/
XS RU 6(/ EXWWRQWRUHWXUQWRWKH
RUGLQDU\GLVSOD\
(;,7
1RWHWKDWGRLQJVRFDQFHOVWKHVHWWLQJVOHIW
LQFRPSOHWH
)81&7,21 )81&7,21LVVHOHFWHG
)81&7,21
7R6HWWKH)81&7,210HQX
6HOHFWWKH´)81&7,21µPHQXRQWKHPDLQ
2SHUDWLRQ*XLGH
PHQXVFUHHQ 3 48,&.6+,)7(5 &%56 3
6HOHFWDPHQXE\SUHVVLQJWKH 6(/ XS
RU 6(/ GRZQ EXWWRQDQGSUHVVWKH 6863(16,21$ &%56 3
02'( EXWWRQ
6863(16,21$ &%56 3
7R(QGWKH6HWWLQJ
6HOHFWWKH UHWXUQ RQWKHPHQXVFUHHQ 6863(16,21$ &%56 3
7KHGLVSOD\UHWXUQVWRWKH´)81&7,21µPHQX
RQWKHPDLQPHQXVFUHHQ 6863(16,210 &%56 3
&RQWLQXHG
,QVWUXPHQWV &RQWLQXHG
48,&.6+,)7(5 7R(QGWKH6HWWLQJ
&%56 6HOHFWWKH UHWXUQ RQWKHPHQXVFUHHQ
<RXFDQFKDQJHWKHVHWWLQJRIWKH4XLFN 7KHGLVSOD\UHWXUQVWRWKH´48,&.6+,)7(5µ
2SHUDWLRQ*XLGH
6KLIWHU PHQXRQWKH´)81&7,21µVFUHHQ
83 6HOHFW´21µ DFWLYDWH RU´2))µ GHDFWLYDWH
<RXFDQVHOHFW´21µ DFWLYDWH RU´2))µ XVLQJWKH 6(/ XS RU 6(/ GRZQ
GHDFWLYDWH IRUXSVKLIWLQJZLWKWKH4XLFN EXWWRQ
2SHUDWLRQ*XLGH
6KLIWHU
6HOHFWWKH´83µXVLQJWKH 6(/ XS RU
6(/ GRZQ EXWWRQDQGSUHVVWKH
02'( EXWWRQ
u 3UHVVDQGKROGWKH 6(/ XS RU 6(/
GRZQ EXWWRQWRPRYHWKHPHQX
TXLFNO\
3UHVVWKH 02'( EXWWRQ7KH´83µVHWWLQJLV
VHWDQGWKHQWKHGLVSOD\UHWXUQVWRWKH
XSSHUOHYHOKLHUDUFK\
&RQWLQXHG
,QVWUXPHQWV &RQWLQXHG
'2:1 6HOHFW´21µ DFWLYDWH RU´2))µ GHDFWLYDWH
<RXFDQVHOHFW´21µ DFWLYDWH RU´2))µ XVLQJWKH 6(/ XS RU 6(/ GRZQ
GHDFWLYDWH IRUGRZQVKLIWLQJZLWKWKH4XLFN EXWWRQ
2SHUDWLRQ*XLGH
6KLIWHU
6HOHFWWKH´'2:1µXVLQJWKH 6(/ XS
RU 6(/ GRZQ EXWWRQDQGSUHVVWKH
02'( EXWWRQ
u 3UHVVDQGKROGWKH 6(/ XS RU 6(/
GRZQ EXWWRQWRPRYHWKHPHQX
TXLFNO\
3UHVVWKH 02'( EXWWRQ7KH´'2:1µ
VHWWLQJLVVHWDQGWKHQWKHGLVSOD\UHWXUQVWR
WKHXSSHUOHYHOKLHUDUFK\
83/9/ 6HOHFWRQHRIWKHWKUHHOHYHOVXVLQJWKH 6(/
<RXFDQVHOHFWWKHVKLIWSHGDOORDGOHYHOIRU XS RU 6(/ GRZQ EXWWRQ
DFWLYDWLQJWKH4XLFN6KLIWHUZKHQXSVKLIWLQJ u 3UHVVDQGKROGWKH 6(/ XS RU 6(/
GRZQ EXWWRQWRPRYHWKHPHQX
2SHUDWLRQ*XLGH
6HOHFWWKH´83/9/µXVLQJWKH 6(/ XS
RU 6(/ GRZQ EXWWRQDQGSUHVVWKH TXLFNO\
02'( EXWWRQ u $YDLODEOHVHWWLQJUDQJH
u 3UHVVDQGKROGWKH 6(/ XS RU 6(/ OLJKWRSHUDWLRQ WR KHDY\RSHUDWLRQ
GRZQ EXWWRQWRPRYHWKHPHQX
TXLFNO\
&RQWLQXHG
,QVWUXPHQWV &RQWLQXHG
'2:1/9/ 6HOHFWRQHRIWKHWKUHHOHYHOVXVLQJWKH 6(/
<RXFDQVHOHFWWKHVKLIWSHGDOORDGOHYHOIRU XS RU 6(/ GRZQ EXWWRQ
DFWLYDWLQJWKH4XLFN6KLIWHUZKHQ u 3UHVVDQGKROGWKH 6(/ XS RU 6(/
GRZQ EXWWRQWRPRYHWKHPHQX
2SHUDWLRQ*XLGH
GRZQVKLIWLQJ
6HOHFWWKH´'2:1/9/µXVLQJWKH 6(/ TXLFNO\
XS RU 6(/ GRZQ EXWWRQDQGSUHVV u $YDLODEOHVHWWLQJUDQJH
WKH 02'( EXWWRQ OLJKWRSHUDWLRQ WR KHDY\RSHUDWLRQ
u 3UHVVDQGKROGWKH 6(/ XS RU 6(/
GRZQ EXWWRQWRPRYHWKHPHQX
TXLFNO\
6863(16,21$$DQG$ %5$.($&& 6863(16,21$RQO\
&%56 &251(5 6863(16,21$RQO\ DQG
<RXFDQFKDQJHWKHOHYHOVRI2%7LVXSSRUW *(1(5$/
2SHUDWLRQ*XLGH
LWHPV <RXFDQVHOHFWWKH´'()$8/7µRURQHRIWKH
$GMXVWLQJWKHg+/,166PDUW(&V\VWHP WHQVXVSHQVLRQGDPSLQJOHYHOVIRUGDPSLQJ
3 FKDUDFWHULVWLFVRIWKHVXVSHQVLRQ
6HOHFWWKHLWHP\RXZDQWWRFKDQJHXVLQJ
7R(QGWKH6HWWLQJ WKH 6(/ XS RU 6(/ GRZQ EXWWRQ
6HOHFWWKH UHWXUQ RQWKHPHQXVFUHHQ DQGSUHVVWKH 02'( EXWWRQ
7KHGLVSOD\UHWXUQVWRWKH´6863(16,21$µ u 3UHVVDQGKROGWKH 6(/ XS RU 6(/
´6863(16,21$µRU´6863(16,21$µ GRZQ EXWWRQWRPRYHWKHPHQX
TXLFNO\
PHQXRQWKH´)81&7,21µVFUHHQ
&RQWLQXHG
,QVWUXPHQWV &RQWLQXHG
6HOHFWWKH´'()$8/7µRURQHRIWKHWHQ 6863(16,2100DQG0
VXVSHQVLRQGDPSLQJOHYHOVXVLQJWKH 6(/ &%56
XS RU 6(/ GRZQ EXWWRQ <RXFDQDGMXVWWKHFRPSUHVVLRQDQG
u 3UHVVDQGKROGWKH 6(/ XS RU 6(/
2SHUDWLRQ*XLGH
UHERXQGGDPSLQJRIWKHIURQWDQGUHDU
GRZQ EXWWRQWRPRYHWKHPHQX VXVSHQVLRQHOHFWURQLFDOO\
TXLFNO\
u $YDLODEOHVHWWLQJUDQJH
$GMXVWLQJWKHg+/,166PDUW(&V\VWHP
WR
3
7R(QGWKH6HWWLQJ
6HOHFWWKH UHWXUQ RQWKHPHQXVFUHHQ
7KHGLVSOD\UHWXUQVWRWKH´6863(16,210µ
´6863(16,210µRU´6863(16,210µ
PHQXRQWKH´)81&7,21µVFUHHQ
)5&203)55(%55&203DQG555(% $GMXVWWRRQHRIWKHGDPSLQJOHYHOVXVLQJ
<RXFDQVHOHFWRQHRIWKHGLIIHUHQW WKH 6(/ XS RU 6(/ GRZQ EXWWRQ
GDPSLQJOHYHOVIRUWKHIURQWDQGUHDU u 3UHVVDQGKROGWKH 6(/ XS RU 6(/
GRZQ EXWWRQWRPRYHWKHPHQX
2SHUDWLRQ*XLGH
VXVSHQVLRQ
6HOHFWWKHLWHP\RXZDQWWRFKDQJHXVLQJ TXLFNO\
WKH 6(/ XS RU 6(/ GRZQ EXWWRQ u $YDLODEOHVHWWLQJ
DQGSUHVVWKH 02'( EXWWRQ 0,1 VRIW 0$; KDUG DQGWKHUDQJH
u 3UHVVDQGKROGWKH 6(/ XS RU 6(/ LQLQFUHPHQWV
GRZQ EXWWRQWRPRYHWKHPHQX
TXLFNO\
&RQWLQXHG
,QVWUXPHQWV &RQWLQXHG
3UHVHWVHWWLQJVDUHDVIROORZV
)URQW 5HDU
&RPSUHVVLRQ 5HERXQG &RPSUHVVLRQ 5HERXQG
2SHUDWLRQ*XLGH
/$37,0( /$37,0(LVVHOHFWHG
7R6HWWKH/$37,0(0HQX /$37,0(
6HOHFWWKH´/$37,0(µPHQXRQWKHPDLQ
2SHUDWLRQ*XLGH
PHQXVFUHHQ 3
6HOHFWWKHPHQXE\SUHVVLQJWKH 6(/ /$3'$7$ 3
XS RU 6(/ GRZQ EXWWRQDQGSUHVV
WKH 02'( EXWWRQ
&/($5'$7$ 3
7R(QGWKH6HWWLQJ
6HOHFWWKH UHWXUQ RQWKHPHQXVFUHHQ UHWXUQ
7KHGLVSOD\UHWXUQVWRWKH´/$37,0(µPHQX
RQWKHPDLQPHQXVFUHHQ
3UHVVWKH 02'( EXWWRQ
3UHVVWKH 6(/ XS EXWWRQ
3UHVVWKH 6(/ GRZQ EXWWRQ
&RQWLQXHG
,QVWUXPHQWV &RQWLQXHG
/$3'$7$ DQJOHDQGPD[LPXPULJKWEDQNDQJOH
7KHKLVWRU\RIUHFRUGHGODSWLPHDQG LQIRUPDWLRQSUHVVWKH /$3 EXWWRQ
LQIRUPDWLRQDUHGLVSOD\HG 7RHQGWKHGLVSOD\RIODSWLPHKLVWRU\SUHVV
2SHUDWLRQ*XLGH
%HVWLFRQ $SSHDUVZKHQWKHIDVWHVWODSWLPHGLVSOD\HG
&/($5'$7$
6HOHFW´12µ QRWFOHDU RU´<(6µ FOHDU XVLQJ
WKH 6(/ XS RU 6(/ GRZQ EXWWRQ
2SHUDWLRQ*XLGH
3UHVVWKH 02'( EXWWRQ7KHGLVSOD\UHWXUQV
WRWKHXSSHUOHYHOKLHUDUFK\
7RXVHWKH/DS7LPHU 3
&RQWLQXHG
,QVWUXPHQWV &RQWLQXHG
',63/$< ',63/$<LVVHOHFWHG
7R6HWWKH',63/$<0HQX ',63/$<
6HOHFWWKH´',63/$<µPHQXRQWKHPDLQ
2SHUDWLRQ*XLGH
PHQXVFUHHQ 3
6HOHFWWKHPHQXE\SUHVVLQJWKH 6(/ ',63/$<02'( 3
XS RU 6(/ GRZQ EXWWRQDQGSUHVVWKH
02'( EXWWRQ 6+,)7,1',&$725 3
UHWXUQ
',63/$<02'( :KHQWKH´0(&+$1,&µLVVHOHFWHG
6HOHFW´675((7µ´0(&+$1,&µRU´&,5&8,7µ 3UHVVWKH 02'( EXWWRQ7KHPHFKDQLF
XVLQJWKH 6(/ XS RU 6(/ GRZQ PRGHHQGVDQGWKHQWKHGLVSOD\UHWXUQVWR
WKHXSSHUOHYHOKLHUDUFK\
2SHUDWLRQ*XLGH
EXWWRQ
u 7KHGLVSOD\PRGHUHWXUQVWRWKH
SUHYLRXVO\VHOHFWHGPRGH
:KHQWKH´675((7µRU´&,5&8,7µLVVHOHFWHG
3UHVVWKH 02'( EXWWRQ7KHGLVSOD\PRGH
VHWWLQJLVVHWDQGWKHQWKHGLVSOD\UHWXUQVWR
WKHXSSHUOHYHOKLHUDUFK\
:KHQWKH´0(&+$1,&µLVVHOHFWHG
3UHVVWKH 02'( EXWWRQ7KHGLVSOD\PRYHV
WRWKHPHFKDQLFPRGH
&RQWLQXHG
,QVWUXPHQWV &RQWLQXHG
0HFKDQLF0RGH 7KURWWOHJULSSRVLWLRQ
'LVSOD\VWKHFXUUHQWLQIRUPDWLRQRIWKH
PRWRUF\FOH 7DFKRPHWHU *HDUSRVLWLRQ
2SHUDWLRQ*XLGH
'LVSOD\VWKHIROORZLQJLQIRUPDWLRQ
॥ 7DFKRPHWHU
॥ *HDUSRVLWLRQ
॥ 7KURWWOHJULSSRVLWLRQ
॥ &RRODQWWHPSHUDWXUH
॥ %DWWHU\YROWDJH
%DWWHU\YROWDJH
&RRODQWWHPSHUDWXUH
6+,)7,1',&$725
<RXFDQFKDQJHWKHVHWWLQJRIWKHVKLIW
LQGLFDWRUV
2SHUDWLRQ*XLGH
6HOHFWWKH´2))µ GHDFWLYDWH RUDQHQJLQH
UHYROXWLRQDWZKLFKWKHVKLIWLQGLFDWRUVVWDUW
EOLQNLQJXVLQJWKH 6(/ XS RU 6(/
GRZQ EXWWRQ
u 3UHVVDQGKROGWKH 6(/ XS RU 6(/ ,QIRUPDWLRQRIWKH6KLIW,QGLFDWRU
GRZQ EXWWRQWRPRYHWKHPHQX 3
TXLFNO\
u 7KHYDOXHLQFUHDVHVE\UPLQ USP
LQFUHPHQWV
u $YDLODEOHVHWWLQJUDQJH
WRUPLQ USP
3UHVVWKH 02'( EXWWRQ7KHVKLIWLQGLFDWRU
VHWWLQJLVVHWDQGWKHQWKHGLVSOD\UHWXUQVWR
WKHXSSHUOHYHOKLHUDUFK\
&RQWLQXHG
,QVWUXPHQWV &RQWLQXHG
%5,*+71(66
<RXFDQDGMXVWWKHEDFNOLJKWEULJKWQHVVWR
RQHRIWKHHLJKWOHYHOVRUVHOHFWWKHDXWR
2SHUDWLRQ*XLGH
DGMXVWPHQW
$XWRPDWLF%ULJKWQHVV&RQWURO 3
%$&.*5281'
<RXFDQFKDQJHWKHVHWWLQJRIWKH
EDFNJURXQGWRRQHRIWKHIRXUFDWHJRULHVRU
2SHUDWLRQ*XLGH
VHOHFWWKHDXWRDGMXVWPHQW
6HOHFWWKH´$872µ´:+,7(µ´%/$&.µ
´0(7$//,&µRU´&$5%21µXVLQJWKH 6(/
XS RU 6(/ GRZQ EXWWRQ
u 3UHVVDQGKROGWKH 6(/ XS RU 6(/
GRZQ EXWWRQWRPRYHWKHPHQX
TXLFNO\
3UHVVWKH 02'( EXWWRQ7KHEDFNJURXQG
VHWWLQJLVVHWDQGWKHQWKHGLVSOD\UHWXUQVWR
WKHXSSHUOHYHOKLHUDUFK\
&RQWLQXHG
,QVWUXPHQWV &RQWLQXHG
86(5/(77(5
<RXFDQVHOHFWDQ\FKDUDFWHUV\RXOLNH
2SHUDWLRQ*XLGH
6HOHFWWKHILUVWFKDUDFWHUXVLQJWKH 6(/
XS RU 6(/ GRZQ EXWWRQXQWLOD
GHVLUHGFKDUDFWHUDSSHDUV
u 3UHVVDQGKROGWKH 6(/ XS RU 6(/
GRZQ EXWWRQWRPRYHWKHPHQX
TXLFNO\ $OLVWRIFKDUDFWHUVWKDWFDQEHVHOHFWHG
3UHVVWKH 02'( EXWWRQ7KHFXUVRUPRYHV $ % & ' ( ) * + ,
WRWKHQH[WSRVLWLRQ
- . / 0 1 2 3 4 5
5HSHDWWKHVWHSVDQGWRVHOHFW
FKDUDFWHUVIRUWKHRWKHUSRVLWLRQVXQWLOD 6 7 8 9 : ; < =
GHVLUHGZRUGLVFRPSOHWH
:KHQWKHWHQWKFKDUDFWHULVVHOHFWHGWKH
µ ¶ ·
GLVSOD\UHWXUQVWRWKHXSSHUOHYHOKLHUDUFK\
! " # Ụ B
)$925,7( 7R(QGWKH6HWWLQJ
<RXFDQFKDQJHWKHLQGLFDWLRQVRQWKH,1)2 6HOHFWWKH UHWXUQ RQWKHPHQXVFUHHQ
,1)2DQG,1)2WRWKHIROORZLQJ 7KHGLVSOD\UHWXUQVWRWKH´)$925,7(µPHQX
2SHUDWLRQ*XLGH
LQIRUPDWLRQE\SUHVVLQJWKH /$3 EXWWRQZKLOH RQWKH´',63/$<µPHQXVFUHHQ
WKHVWUHHWPRGHLVGLVSOD\HG
,1)2
´727$/µ´75,3$µRU´75,3%µ
,1)2
´5(9µ´,167&216µ´$9*&216µ´75,3$
&216µ´$9*63'µRU´(/$36('µ
,1)2
´&%5/2*2µ´5(9,1'1(µ´*5,3$1*/(µ
´92/7$*(µ´'$7(µ´86(5/(77(5µRUD
EODQNGLVSOD\
&RQWLQXHG
,QVWUXPHQWV &RQWLQXHG
,1)2 6HOHFWWKH´727$/µ´75,3$µRU´75,3%µ
<RXFDQVHOHFWWKH´727$/µ´75,3$µRU´75,3 XVLQJWKH 6(/ XS RU 6(/ GRZQ
%µIRU,1)2 EXWWRQ
u 3UHVVDQGKROGWKH 6(/ XS RU 6(/
2SHUDWLRQ*XLGH
,1)2 6HOHFWWKH´5(9µ´,167&216µ
<RXFDQVHOHFWWKH´5(9µ´,167&216µ ´$9*&216µ´75,3$&216µ´$9*63'µ
´$9*&216µ´75,3$&216µ´$9*63'µRU RU´(/$36('µXVLQJWKH 6(/ XS RU 6(/
GRZQ EXWWRQ
2SHUDWLRQ*XLGH
´(/$36('µIRU,1)2
6HOHFWWKH´,1)2µXVLQJWKH 6(/ XS RU u 3UHVVDQGKROGWKH 6(/ XS RU 6(/
6(/ GRZQ EXWWRQDQGSUHVVWKH GRZQ EXWWRQWRPRYHWKHPHQX
02'( EXWWRQ TXLFNO\
u 3UHVVDQGKROGWKH 6(/ XS RU 6(/
GRZQ EXWWRQWRPRYHWKHPHQX
TXLFNO\
&RQWLQXHG
,QVWUXPHQWV &RQWLQXHG
,1)2 6HOHFWWKH´&%5/2*2µ´5(9,1'1(µ´*5,3
<RXFDQVHOHFWWKH´&%5/2*2µ´5(9,1' $1*/(µ´92/7$*(µ´'$7(µ´86(5
1(µ´*5,3$1*/(µ´92/7$*(µ´'$7(µ /(77(5µRUEODQNGLVSOD\XVLQJWKH 6(/
XS RU 6(/ GRZQ EXWWRQ
2SHUDWLRQ*XLGH
´86(5/(77(5µRUEODQNGLVSOD\IRU,1)2
6HOHFWWKH´,1)2µXVLQJWKH 6(/ XS RU u 3UHVVDQGKROGWKH 6(/ XS RU 6(/
6(/ GRZQ EXWWRQDQGSUHVVWKH GRZQ EXWWRQWRPRYHWKHPHQX
02'( EXWWRQ TXLFNO\
u 3UHVVDQGKROGWKH 6(/ XS RU 6(/
GRZQ EXWWRQWRPRYHWKHPHQX
TXLFNO\
*(1(5$/ *(1(5$/LVVHOHFWHG
7R6HWWKH*(1(5$/0HQX *(1(5$/
6HOHFWWKH´*(1(5$/µRQWKHPDLQPHQX
2SHUDWLRQ*XLGH
VFUHHQ 3
6HOHFWDPHQXE\SUHVVLQJWKH 6(/ XS '$7( 7,0( 3
RU 6(/ GRZQ EXWWRQDQGSUHVVWKH
02'( EXWWRQ
81,76 3
7R(QGWKH6HWWLQJ
6HOHFWWKH UHWXUQ PHQXRQWKHPHQX 5(6725('()$8/7 3
VFUHHQ7KHGLVSOD\UHWXUQVWRWKH´*(1(5$/µ
RQWKHPDLQPHQXVFUHHQ UHWXUQ
&RQWLQXHG
,QVWUXPHQWV &RQWLQXHG
'$7( 7,0( 3UHVVWKH 02'( EXWWRQ7KHFXUVRUPRYHV
3UHVVWKH 6(/ XS RU 6(/ GRZQ WRWKHLQGLFDWLRQRIPRQWK
EXWWRQXQWLOWKHGHVLUHGWHQVGLJLWRIWKH\HDU 3UHVVWKH 6(/ XS RU 6(/ GRZQ
EXWWRQXQWLOWKHGHVLUHGPRQWKLVGLVSOD\HG
2SHUDWLRQ*XLGH
LVGLVSOD\HG
3UHVVWKH 02'( EXWWRQ7KHFXUVRUPRYHV 3UHVVWKH 02'( EXWWRQ7KHFXUVRUPRYHV
WRWKHRQHVGLJLWRIWKH\HDU WRWKHLQGLFDWLRQRIGDWH
3UHVVWKH 6(/ XS RU 6(/ GRZQ
EXWWRQXQWLOWKHGHVLUHGGDWHLVGLVSOD\HG
3UHVVWKH 02'( EXWWRQ7KHFXUVRUPRYHV
WRWKH´$0µRU´30µ
6HOHFWWKH´$0µRU´30µXVLQJWKH 6(/
XS RU 6(/ GRZQ EXWWRQ
3UHVVWKH 02'( EXWWRQ7KHFXUVRUPRYHV
WRWKHLQGLFDWLRQRIKRXU
3UHVVWKH 6(/ XS RU 6(/ GRZQ 3UHVVWKH 6(/ XS RU 6(/ GRZQ
EXWWRQXQWLOWKHGHVLUHGRQHVGLJLWRIWKH EXWWRQXQWLOWKHGHVLUHGKRXULVGLVSOD\HG
\HDULVGLVSOD\HG
3UHVVWKH 02'( EXWWRQ7KHFXUVRUPRYHV 81,76
WRWKHLQGLFDWLRQRIPLQXWH <RXFDQFKDQJHWKHVSHHGDQGPLOHDJH
3UHVVWKH 6(/ XS RU 6(/ GRZQ WHPSHUDWXUHDQGIXHOPLOHDJHPHWHUXQLWV
EXWWRQXQWLOWKHGHVLUHGPLQXWHLVGLVSOD\HG
2SHUDWLRQ*XLGH
3UHVVWKH 02'( EXWWRQ7KHGDWHDQGFORFN
7R6HW(DFK8QLW
VHWWLQJLVVHWDQGWKHQWKHGLVSOD\UHWXUQVWR 6HOHFWWKH´63(('µ´7(03µRU´)8(/
WKHXSSHUOHYHOKLHUDUFK\ &216µXVLQJWKH 6(/ XS RU 6(/
GRZQ EXWWRQ
3UHVVDQGKROGWKH 6(/ XS RU 6(/ 3UHVVWKH 02'( EXWWRQ7KHGLVSOD\PRYHV
GRZQ EXWWRQWRPRYHWKHPHQXTXLFNO\ WRHDFKXQLWVHWWLQJVFUHHQ
7KHXQLWVRIWKHVSHHGRPHWHURGRPHWHU
WULSPHWHU$%FXUUHQWIXHOPLOHDJHDYHUDJH
IXHOPLOHDJHWULSPHWHU$IXHOFRQVXPSWLRQ
DYHUDJHVSHHGDYDLODEOHGULYLQJGLVWDQFHDQG
DPRXQWRIUHPDLQLQJIXHODUHFKDQJHGLQ
´63(('µPHQX
&RQWLQXHG
,QVWUXPHQWV &RQWLQXHG
7KHXQLWRIFRRODQWWHPSHUDWXUHJDXJHDQG 7R(QGWKH6HWWLQJ
LQIRUPDWLRQRIWHPSHUDWXUH ODSGDWDKLVWRU\ 6HOHFWWKH UHWXUQ RQWKHPHQXVFUHHQ
PRGHDQGPHFKDQLFPRGH LVFKDQJHGE\ 7KHGLVSOD\UHWXUQVWRWKH´81,76µPHQXRQ
2SHUDWLRQ*XLGH
´7(03µPHQX WKH´*(1(5$/µPHQXVFUHHQ
7KHXQLWVRIWKHFXUUHQWIXHOPLOHDJHDYHUDJH
IXHOPLOHDJHDQGDPRXQWRIUHPDLQLQJIXHO
DUHFKDQJHGLQ´)8(/&216µPHQX
6SHHGDQG0LOHDJH8QLW>63(('@ :KHQVHOHFWLQJWKH´PSKµ
6HOHFWWKH´PSKµRU´NPKµXVLQJWKH 6(/ ॥ 8QLWVRIWKHVSHHGRPHWHUDQGDYHUDJH
XS RU 6(/ GRZQ EXWWRQ VSHHGVKRZ´PSKµ
3UHVVWKH 02'( EXWWRQ7KHVSHHGDQG
2SHUDWLRQ*XLGH
॥ 8QLWVRIWKHRGRPHWHUWULSPHWHU$%DQG
PLOHDJHXQLWVHWWLQJLVVHWDQGWKHQWKH DYDLODEOHGULYLQJGLVWDQFHVKRZ´PLOHµ
GLVSOD\UHWXUQVWRWKHXSSHUOHYHOKLHUDUFK\ ॥ 8QLWVRIWKHFXUUHQWIXHOPLOHDJHDQG
DYHUDJHIXHOPLOHDJHVKRZ´03*µRU
´PLOH/µ
॥ 8QLWVRIWKHWULSPHWHU$IXHOFRQVXPSWLRQ
DQGDPRXQWRIUHPDLQLQJIXHOVKRZ´*$/µ
RU´/µ
&RQWLQXHG
,QVWUXPHQWV &RQWLQXHG
:KHQVHOHFWLQJWKH´NPKµ 7HPSHUDWXUH8QLW>7(03@
॥ 8QLWVRIWKHVSHHGRPHWHUDQGDYHUDJH 6HOHFWWKH´)µRU´&µXVLQJWKH 6(/ XS
VSHHGVKRZ´NPKµ RU 6(/ GRZQ EXWWRQ
3UHVVWKH 02'( EXWWRQ7KHWHPSHUDWXUH
2SHUDWLRQ*XLGH
॥ 8QLWVRIWKHRGRPHWHUWULSPHWHU$%DQG
DYDLODEOHGULYLQJGLVWDQFHVKRZ´NPµ XQLWVHWWLQJLVVHWDQGWKHQWKHGLVSOD\
॥ 8QLWVRIWKHFXUUHQWIXHOPLOHDJHDQG UHWXUQVWRWKHXSSHUOHYHO
DYHUDJHIXHOPLOHDJHVKRZ´/NPµRU KLHUDUFK\
´NP/µ
॥ 8QLWVRIWKHWULSPHWHU$IXHOFRQVXPSWLRQ
DQGDPRXQWRIUHPDLQLQJIXHOVKRZ´/µ
)XHO0LOHDJH0HWHU8QLW>)8(/&216@
:KHQWKH´PSKµRIWKH´63(('µPHQXLV
VHOHFWHG
6HOHFWWKH´03*µRU´PLOH/µXVLQJWKH 6(/
2SHUDWLRQ*XLGH
XS RU 6(/ GRZQ EXWWRQ
:KHQWKH´NPKµRIWKH´63(('µPHQXLV
VHOHFWHG
6HOHFWWKH´/NPµRU´NP/µXVLQJWKH
6(/ XS RU 6(/ GRZQ EXWWRQ
3UHVVWKH 02'( EXWWRQ7KHIXHOPLOHDJH :KHQVHOHFWLQJWKH´03*µ
PHWHUXQLWVHWWLQJLVVHWDQGWKHQWKHGLVSOD\ ॥ 8QLWVRIWKHFXUUHQWIXHOPLOHDJHDQG
UHWXUQVWRWKHXSSHUOHYHOKLHUDUFK\ DYHUDJHIXHOPLOHDJHVKRZ´03*µ
॥ 8QLWVRIWKHWULSPHWHU$IXHOFRQVXPSWLRQ
DQGDPRXQWRIUHPDLQLQJIXHOVKRZ
´*$/µ
:KHQVHOHFWLQJWKH´PLOH/µ
॥ 8QLWVRIWKHFXUUHQWIXHOPLOHDJHDQG
DYHUDJHIXHOPLOHDJHVKRZ´PLOH/µ
॥ 8QLWVRIWKHWULSPHWHU$IXHOFRQVXPSWLRQ
DQGDPRXQWRIUHPDLQLQJIXHOVKRZ´/µ
&RQWLQXHG
,QVWUXPHQWV &RQWLQXHG
:KHQVHOHFWLQJWKH´/NPµ 5(6725('()$8/7
॥ 8QLWVRIWKHFXUUHQWIXHOPLOHDJHDQG 7KHVHWYDOXHFDQEHUHWXUQHGWRGHIDXOW
DYHUDJHIXHOPLOHDJHVKRZ´/NPµ VHWWLQJ
2SHUDWLRQ*XLGH
6HOHFWWKH´12µ QRWUHVWRUH RU´<(6µ 6HOHFWWKH´(;,7µE\SUHVVLQJWKH 02'(
UHVWRUH XVLQJWKHWKH 6(/ XS RU 6(/ EXWWRQ
GRZQ EXWWRQRQWKHFRQILUPDWLRQ
VFUHHQ
2SHUDWLRQ*XLGH
:KHQWKH´12µLVVHOHFWHG
3UHVVWKH 02'( EXWWRQ7KHVHWYDOXHLV
PDLQWDLQHGDQGWKHQWKHGLVSOD\UHWXUQVWR
WKH´5(6725('()$8/7µPHQXRQWKH
´*(1(5$/µPHQXVFUHHQ
:KHQWKH´<(6µLVVHOHFWHG
3UHVVWKH 02'( EXWWRQ7KHVHWYDOXH 7KHGLVSOD\UHWXUQVWRWKH´5(6725(
UHWXUQWRGHIDXOWVHWWLQJ '()$8/7µPHQXRQWKH´*(1(5$/µPHQX
VFUHHQ
&RQWLQXHG
,QVWUXPHQWV &RQWLQXHG
'HIDXOWVHWWLQJYDOXHV ॥ &%56
॥ /$3'$7$&OHDUHG 6863(16,210003UHVHWVHWWLQJ
॥ ',63/$<02'(675((7 3
2SHUDWLRQ*XLGH
॥ 6+,)7,1',&$7252)) ॥ 5LGLQJPRGH86(5DQG86(5VHWWLQJ
॥ %5,*+71(66$872 YDOXHUHWXUQVWRLQLWLDOVHWWLQJYDOXHV
॥ %$&.*5281'$872 3
॥ 86(5/(77(5&%555
॥ )$925,7(727$/5(9&%5/2*2
॥ 63(('81,7 86$ PSK &DQDGD NPK
॥ 7(0381,7 86$ ) &DQDGD &
॥ )8(/&21681,7 86$ 03* &DQDGD /
NP
॥ &%56
48,&.6+,)7(52)) 4XLFN6KLIWHU
V\VWHPLVGLVDEOHG
॥ &%56
6863(16,21$$$'HIDXOWVHWWLQJ
3
6(59,&( 6(59,&(LVVHOHFWHG
7R6HWWKH6(59,&(0HQX 6(59,&(
6HOHFWWKH´6(59,&(µPHQXRQWKHPDLQ
2SHUDWLRQ*XLGH
PHQXVFUHHQ 3
6HOHFWWKHPHQXE\SUHVVLQJWKH 6(/
XS RU 6(/ GRZQ EXWWRQDQGSUHVVWKH 0$,17(1$1&( 3
02'( EXWWRQ
6863(16,21 3
3UHVVWKH 02'( EXWWRQ
3UHVVWKH 6(/ XS EXWWRQ 48,&.6+,)7(5 3
632576.,7(&8 3
UHWXUQ
&RQWLQXHG
,QVWUXPHQWV &RQWLQXHG
7R(QGWKH6HWWLQJ 0$,17(1$1&(
6HOHFWWKH UHWXUQ RQWKHPHQXVFUHHQ <RXFDQFKHFNWKHQH[WLQVSHFWLRQWLPHDQG
DQGWKHQWKHGLVSOD\UHWXUQVWRWKH´6(59,&(µ FKDQJHWKHVHWWLQJRIQH[WLQVSHFWLRQ
2SHUDWLRQ*XLGH
PHQXRQWKHPDLQPHQXVFUHHQ
1H[WHQJLQHRLOFKDQJH
1H[WSHULRGLFLQVSHFWLRQ
7RUHWXUQWRWKHXSSHUOHYHOKLHUDUFK\SUHVV
WKH 02'( EXWWRQ
'LVSOD\UDQJH ॥ ´PLOHµRU´NPµIURPWKHQH[W
',67$1&( SHULRGLFLQVSHFWLRQ
1H[WSHULRGLFLQVSHFWLRQ ॥ ´PLOHµRU´NPµIURPWKHQH[W
2SHUDWLRQ*XLGH
WRPLOH HQJLQHRLOFKDQJH
WRNP ॥ 2QHPRQWKEHIRUHWKHVHWPRQWK
1H[WHQJLQHRLOFKDQJH
WRPLOH
0DLQWHQDQFH
WRNP
SRSXS
u 3DVVPLOH NP ´µPDUNFKDQJHGWR
LQIRUPDWLRQ
´µPDUN
'$7(
0RQWK-$1WR'(&
<HDUWR
:KHQUHDFKLQJDQ\RIWKHIROORZLQJWKH
SRSXSLQIRUPDWLRQLVDSSHDUVLQWKH
RUGLQDU\GLVSOD\ 3
&RQWLQXHG
,QVWUXPHQWV &RQWLQXHG
1H[WLQVSHFWLRQVHWWLQJ
6HOHFW´ µ SHULRGLFLQVSHFWLRQ RU´ µ
HQJLQHRLOFKDQJH XVLQJWKH 6(/ XS
RU 6(/ GRZQ EXWWRQ
2SHUDWLRQ*XLGH
3UHVVWKH 02'( EXWWRQ7KHFXUVRUPRYHV 6863(16,21
WRWKHLQGLFDWLRQRIPRQWK &%56
3UHVVWKH 6(/ XS RU 6(/ GRZQ ´(48,30(17µLVGLVSOD\HGEXWQRWVHOHFWDEOH
EXWWRQXQWLOWKHGHVLUHGPRQWKLVGLVSOD\HG
2SHUDWLRQ*XLGH
3UHVVWKH 02'( EXWWRQ7KHFXUVRUPRYHV
WRWKHWHQVGLJLWRIWKH\HDU
3UHVVWKH 6(/ XS RU 6(/ GRZQ
EXWWRQXQWLOWKHGHVLUHGWHQVGLJLWRIWKH\HDU
LVGLVSOD\HG
3UHVVWKH 02'( EXWWRQ7KHFXUVRUPRYHV
WRWKHRQHVGLJLWRIWKH\HDU
3UHVVWKH 6(/ XS RU 6(/ GRZQ
EXWWRQXQWLOWKHGHVLUHGRQHVGLJLWRIWKH
\HDULVGLVSOD\HG
3UHVVWKH 02'( EXWWRQ7KHPLOHDJHDQG 6HOHFWWKH UHWXUQ RQWKHPHQXVFUHHQ
GDWHVHWWLQJLVVHWDQGWKHQWKHGLVSOD\ 7KHGLVSOD\UHWXUQVWRWKH´6863(16,21µ
UHWXUQVWRWKHXSSHUOHYHOKLHUDUFK\ PHQXRQWKH´6(59,&(µPHQXVFUHHQ
&RQWLQXHG
,QVWUXPHQWV &RQWLQXHG
48,&.6+,)7(5 '7&
&%56 <RXFDQFKHFNIRUDFXUUHQWSUREOHPZLWKWKH
´,1,7,$/,=(µDQG´(48,30(17µDUHGLVSOD\HG 3*0),V\VWHP
2SHUDWLRQ*XLGH
EXWQRWVHOHFWDEOH &%56
<RXFDQFKHFNIRUDFXUUHQWSUREOHPZLWKWKH
g+/,166PDUW(&V\VWHP
,I\RXUPRWRUF\FOHKDVDSUREOHPWKH'7&
LQGH[LVGLVSOD\HG,QWKLVFDVHWKHSRSXS
LQIRUPDWLRQDSSHDUVLQWKHRUGLQDU\GLVSOD\
3
5HGXFHVSHHGDQGKDYH\RXUPRWRUF\FOH 632576.,7(&8
LQVSHFWHGE\\RXUGHDOHUDVVRRQDVSRVVLEOH ´632576.,7(&886$*(µLVGLVSOD\HGEXW
QRWXVDEOH
2SHUDWLRQ*XLGH
'7&LQGH[HV
7RUHWXUQWRWKHXSSHUOHYHOKLHUDUFK\SUHVV
WKH 02'( EXWWRQ
7RUHWXUQWRWKHXSSHUOHYHOKLHUDUFK\SUHVV
WKH 02'( EXWWRQ
&RQWLQXHG
,QVWUXPHQWV &RQWLQXHG
/DS7LPHU <RXFDQFKHFNDQGFOHDUWKHUHFRUGHGODS
<RXFDQUHFRUGODSWLPHLQWKHFLUFXLWPRGH WLPHGDWDLQWKHVHWWLQJPRGH 3
3 3
2SHUDWLRQ*XLGH
6WRSZDWFK %HVWLFRQ
GLIIHUHQFHZLWKWKHEHVWODS 'LVSOD\HGZKHQWKHIDVWHVWODS
WLPHGLVSOD\HG
/DSQXPEHU
/DSWLPH
7LPHVWDPS
3UHYLRXVODSWLPH
3UHYLRXVODSQXPEHU
0D[LPXP 0D[LPXPHQJLQH
YHKLFOH UHYROXWLRQV
VSHHG
0D[LPXPFRRODQW
WHPSHUDWXUH
7KHODSWLPHGDWDLQFOXGHVODSWLPHPD[LPXP 0D[LPXPYHKLFOHVSHHG
YHKLFOHVSHHGPD[LPXPHQJLQHUHYROXWLRQV WRPSK WRNPK
PD[LPXPFRRODQWWHPSHUDWXUHPD[LPXP
2SHUDWLRQ*XLGH
DFFHOHUDWLRQPD[LPXPGHFHOHUDWLRQPD[LPXP 0D[LPXPHQJLQHUHYROXWLRQV
OHIWEDQNDQJOHDQGPD[LPXPULJKWEDQNDQJOH WRUPLQ USP
'LVSOD\UDQJH 0D[LPXPFRRODQWWHPSHUDWXUH
3UHYLRXVODSQXPEHUWR WR) WR&
u ([FHHGVUHSHDWVWKH´µ
0D[LPXPDFFHOHUDWLRQWR*
3UHYLRXVODSWLPH WR
u ([FHHGV UHWXUQVWRWKH 0D[LPXPGHFHOHUDWLRQWR*
´ µ
0D[LPXPOHIWEDQNDQJOH
6WRSZDWFK WR WRGHJ
u ([FHHGV UHWXUQVWRWKH
´ µ 0D[LPXPULJKWEDQNDQJOH
WRGHJ
'LIIHUHQFHZLWKWKHEHVWODS
ἄ ἄ
&RQWLQXHG
,QVWUXPHQWV &RQWLQXHG
7R0HDVXUHWKH/DS7LPH 7RUHFRUGODSWLPHSUHVVWKH /$3 EXWWRQDW
3UHVVDQGKROGWKH /$3 EXWWRQRUVHOHFWWKH HDFKODS
´&,5&8,7µPHQXRQWKH´',63/$<02'(µ u 7KHVWRSZDWFKFKDQJHVWRGLVSOD\WKH
GLIIHUHQFHZLWKWKHEHVWODS
2SHUDWLRQ*XLGH
7R5HVWDUWWKH0HDVXUHPHQW
3UHYLRXVODSQXPEHU
3UHVVWKH /$3 EXWWRQDJDLQ7KHVWRSZDWFK
UHVWDUWVPHDVXULQJ
2SHUDWLRQ*XLGH
u 0HDVXUHPHQWVWDUWVIURPWKHQH[WODS
7R&KHFNRU&OHDUWKH/DS7LPH
6HOHFWWKH´/$37,0(µPHQXLQWKHVHWWLQJ
PRGH 3 3
3UHYLRXVODSWLPH
7RHQGPHDVXUHPHQWSUHVVDQGKROGWKH
/$3 EXWWRQ
&RQWLQXHG
,QVWUXPHQWV &RQWLQXHG
3RSXSLQIRUPDWLRQ ,I\RXUPRWRUF\FOHKDVDSUREOHPZLWKWKH
,QWKHIROORZLQJFDVHWKH,1)2GLVSOD\RU 3*0),DQGg+/,166PDUW(&V\VWHPWKH
WKH,1)2GLVSOD\DQGFRRODQWWHPSHUDWXUH IDLOXUHLQIRUPDWLRQLVGLVSOD\HGLQSULRULW\WR
2SHUDWLRQ*XLGH
JDXJHFKDQJHWRDSRSXSLQIRUPDWLRQ RWKHULQIRUPDWLRQ
GLVSOD\ 3RSXS
॥ 0DLQWHQDQFHLQIRUPDWLRQ LQIRUPDWLRQ
:KHQWKHLQVSHFWLRQWLPHRI\RXU ,1)2 GLVSOD\
PRWRUF\FOHLVDSSURDFKLQJ
॥ +HOSIXOLQIRUPDWLRQ
:KHQ\RXUPRWRUF\FOHKDVKHOSIXO
LQIRUPDWLRQ &RRODQW 3RSXS
॥ )DLOXUHLQIRUPDWLRQ WHPSHUDWXUH LQIRUPDWLRQ
:KHQ\RXUPRWRUF\FOHKDVDSUREOHP JDXJH GLVSOD\
ZLWKWKH3*0),V\VWHP
&%56
:KHQ\RXUPRWRUF\FOHKDVDSUREOHP
ZLWKWKHg+/,166PDUW(&V\VWHP ,1)2
:KHQ\RXUPRWRUF\FOHKDVPXOWLSOHSLHFHVRI
LQIRUPDWLRQHDFKSRSXSLQIRUPDWLRQGLVSOD\
DSSHDUVDOWHUQDWHO\
0DLQWHQDQFH,QIRUPDWLRQ
,QGLFDWLRQ ([SODQDWLRQ 5HPHG\
:KHQWKHSHULRGLFLQVSHFWLRQ +DYH\RXUPRWRUF\FOHLQVSHFWHG
2SHUDWLRQ*XLGH
WLPHRI\RXUPRWRUF\FOHLV E\\RXUGHDOHU
DSSURDFKLQJ
:KHQWKHRLOFKDQJHWLPHRI &KDQJHWKHHQJLQHRLO
\RXUPRWRUF\FOHLVDSSURDFKLQJ 3
+HOSIXO,QIRUPDWLRQ
,QGLFDWLRQ ([SODQDWLRQ 5HPHG\
:KHQWKHVLGHVWDQGLVGRZQ 5DLVHWKHVLGHVWDQG
&RQWLQXHG
,QVWUXPHQWV &RQWLQXHG
)DLOXUH,QIRUPDWLRQ
,QGLFDWLRQ ([SODQDWLRQ 5HPHG\
:KHQ\RXUPRWRUF\FOHKDVD 5HGXFHVSHHGDQGKDYH\RXU
2SHUDWLRQ*XLGH
SUREOHPZLWKWKH3*0), PRWRUF\FOHLQVSHFWHGE\\RXU
V\VWHP GHDOHUDVVRRQDVSRVVLEOH
&%56 5HGXFHVSHHGDQGKDYH\RXU
:KHQ\RXUPRWRUF\FOHKDVD PRWRUF\FOHLQVSHFWHGE\\RXU
SUREOHPZLWKWKHg+/,16 GHDOHUDVVRRQDVSRVVLEOH
6PDUW(&V\VWHP
,QGLFDWRUV
,IRQHRIWKHVHLQGLFDWRUVGRHVQRWFRPHRQZKHQLWVKRXOGKDYH\RXUGHDOHUFKHFNIRU
SUREOHPV
7RUTXH&RQWURO2))LQGLFDWRU
&RPHVRQZKHQWKH7RUTXH&RQWUROLVWXUQHGRII
2SHUDWLRQ*XLGH
6KLIWLQGLFDWRUV 3
&RPHVRQEULHIO\ZKHQWKHLJQLWLRQVZLWFKLVWXUQHG
WRWKH21SRVLWLRQ
5LJKWWXUQVLJQDOLQGLFDWRU
7RUTXH&RQWUROLQGLFDWRU
॥ &RPHVRQZKHQWKHLJQLWLRQVZLWFKLVWXUQHGWR
/RZRLOSUHVVXUHLQGLFDWRU WKH21SRVLWLRQ*RHVRIIZKHQ\RXUVSHHG
&RPHVRQZKHQWKHLJQLWLRQVZLWFKLV UHDFKHVDSSUR[LPDWHO\PSK NPK WR
WXUQHGWRWKH21SRVLWLRQ*RHVRII LQGLFDWH7RUTXH&RQWUROLVUHDG\WRZRUN
ZKHQWKHHQJLQHVWDUWV ॥ %OLQNVZKHQ7RUTXH&RQWUROLVRSHUDWLQJ
,ILWFRPHVRQZKLOHHQJLQHLV ,ILWFRPHVRQZKLOHULGLQJ 3
UXQQLQJ 3
/HIWWXUQVLJQDOLQGLFDWRU
&RQWLQXHG
,QGLFDWRUV &RQWLQXHG
+LJKFRRODQWWHPSHUDWXUHLQGLFDWRU
&RPHVRQEULHIO\ZKHQWKHLJQLWLRQVZLWFKLVWXUQHG
2SHUDWLRQ*XLGH
WRWKH21SRVLWLRQ
,ILWFRPHVRQZKLOHULGLQJ 3
+(6' +RQGD(OHFWURQLF6WHHULQJ'DPSHU
2SHUDWLRQ*XLGH
LQGLFDWRU
&RPHVRQEULHIO\ZKHQWKHLJQLWLRQVZLWFKLV
WXUQHGWRWKH21SRVLWLRQ
,ILWFRPHVRQZKLOHHQJLQHLVUXQQLQJ
3
&RQWLQXHG
,QGLFDWRUV &RQWLQXHG
6KLIW,QGLFDWRUV ([DPSOH6HWYDOXHUPLQ USP
7KHVKLIWLQGLFDWRUVOLJKWRUEOLQNE\WKH WRUPLQ USP
HQJLQHUHYROXWLRQV7KHILUVWLQGLFDWRUOLJKWV $OOLQGLFDWRUVJRRII
2SHUDWLRQ*XLGH
ZKHQWKHHQJLQHUHYROXWLRQVUHDFKDQXPEHU
UPLQ USP
UPLQ USP EHORZDSUHVHWUHYROXWLRQ
)LUVWLQGLFDWRUFRPHVRQ
QXPEHU
7KHVHFRQGWKLUGDQGIRXUWKLQGLFDWRUVZLOO UPLQ USP
OLJKWHDFKWLPHWKHHQJLQHUHYROXWLRQVLV 6HFRQGLQGLFDWRUFRPHVRQ
UPLQ USP ULVH UPLQ USP
$OOLQGLFDWRUVZLOOEOLQNZKHQHQJLQH 7KLUGLQGLFDWRUFRPHVRQ
UHYROXWLRQVLVUHDFKHGWKHVHWYDOXH UPLQ USP
)RXUWKLQGLFDWRUFRPHVRQ
6HWWLQJRIWKH6KLIW,QGLFDWRUV
UPLQ USP
<RXFDQFKDQJHWKHHQJLQHUHYROXWLRQVDW
$OOLQGLFDWRUVEOLQN
ZKLFKWKHVKLIWLQGLFDWRUVVWDUWEOLQNLQJ
,QLWLDOVHWWLQJ2))
$YDLODEOHVHWWLQJUDQJH
WRUPLQ USP
2SHUDWLRQ*XLGH
BLANK PAGE
6ZLWFKHV
/$3 EXWWRQ
2SHUDWHWKHODSWLPHU
2SHUDWLRQ*XLGH
+RUQEXWWRQ
7XUQVLJQDOVZLWFK +D]DUGVZLWFK
u 3UHVVLQJWKHVZLWFKWXUQV 6ZLWFKDEOHZKHQWKHLJQLWLRQVZLWFKLVRQ&DQEH
WKHWXUQVLJQDORII WXUQHGWRRIIUHJDUGOHVVRIWKHLJQLWLRQVZLWFK
SRVLWLRQ
u 7KHVLJQDOVFRQWLQXHIODVKLQJZLWKWKHLJQLWLRQVZLWFK
LV2))RU/2&.DIWHUWKHKD]DUGVZLWFKLVRQ
+HDGOLJKWGLPPHUVZLWFK3DVVLQJOLJKWFRQWUROVZLWFK
ܬ +LJKEHDP
ܬ /RZEHDP
ܬ )ODVKHVWKHKLJKEHDPKHDGOLJKW
,JQLWLRQ6ZLWFK 21
6ZLWFKHVWKHHOHFWULFDOV\VWHPRQRIIORFNV 7XUQVHOHFWULFDOV\VWHP
WKHVWHHULQJ RQIRUVWDUWLQJULGLQJ
2SHUDWLRQ*XLGH
u .H\FDQEHUHPRYHGZKHQLQWKH2))RU
/2&.SRVLWLRQ 2))
7XUQVHQJLQHRII
/2&.
/RFNVVWHHULQJ
(QJLQHVWRSVZLWFK 6WDUWEXWWRQ
6KRXOGQRUPDOO\UHPDLQLQWKH 5XQ SRVLWLRQ
u ,QDQHPHUJHQF\VZLWFKWRWKH 2II SRVLWLRQWRVWRSWKHHQJLQH
&RQWLQXHG
6ZLWFKHV &RQWLQXHG
6WHHULQJ/RFN /RFNLQJ
/RFNWKHVWHHULQJZKHQSDUNLQJWRKHOS 7XUQWKHKDQGOHEDUVDOOWKHZD\WRWKHOHIW
SUHYHQWWKHIW 3XVKWKHNH\GRZQDQGWXUQWKHLJQLWLRQ
2SHUDWLRQ*XLGH
$Q8VKDSHGZKHHOORFNRUVLPLODUGHYLFHLV VZLWFKWRWKH/2&.SRVLWLRQ
DOVRUHFRPPHQGHG u -LJJOHWKHKDQGOHEDUVLIWKHORFNLV
GLIILFXOWWRHQJDJH
5HPRYHWKHNH\
,JQLWLRQNH\
8QORFNLQJ
,QVHUWWKHNH\SXVKLWLQDQGWXUQWKHLJQLWLRQ
VZLWFKWRWKH2))SRVLWLRQ
3XVK 7XUQ
5LGLQJPRGH
<RXFDQFKDQJHWKHULGLQJPRGH7KHULGLQJ &XUUHQWULGLQJPRGH
PRGHFRQVLVWVRIWKHIROORZLQJSDUDPHWHUV
2SHUDWLRQ*XLGH
3(QJLQHRXWSXWOHYHO
77RUTXHFRQWUROOHYHO
(%(QJLQHEUDNHOHYHO
&%56
66XVSHQVLRQPRGH
6PRGH
(%YDOXH
:KHQ´µLVGLVSOD\HGJRWR\RXUGHDOHUIRU 7YDOXH
VHUYLFH 3YDOXH
&RQWLQXHG
5LGLQJPRGH &RQWLQXHG
5LGLQJPRGHKDVILYHPRGHV &%56
$YDLODEOHULGLQJPRGH02'(02'(02'( (DFKYDOXHDQGPRGHFDQQRWEHFKDQJHG
86(5DQG86(5 6HWWLQJRI6PRGHFDQEHFKDQJHG
02'(02'(DQG02'(
2SHUDWLRQ*XLGH
u 02'(LVVXLWDEOHIRUWUDFNULGLQJ 86(5DQG86(5
u 02'(LVVXLWDEOHIRUZLQGLQJURDGV &%5555$
u 02'(LVVXLWDEOHIRUVWUHHWULGLQJ (DFKYDOXHFDQEHFKDQJHG
&%5555$ &%56
(DFKYDOXHFDQQRWEHFKDQJHG (DFKYDOXHDQGPRGHFDQEHFKDQJHG
6HWWLQJRI6PRGHFDQEHFKDQJHG
,QLWLDOVHWWLQJ
5LGLQJPRGHV 3YDOXH 7YDOXH (%YDOXH 6PRGH &%56
02'( $
02'( $
02'( $
86(5 0
86(5 0
1RWHV
9DOXHFDQEHFKDQJHG 6PRGHDQGVHWWLQJRI6PRGHFDQEHFKDQJHG
6HWWLQJRI6PRGHFDQEHFKDQJHG
3YDOXH (QJLQHRXWSXWOHYHO (%YDOXH (QJLQHEUDNHOHYHO
3YDOXHKDVILYHVHWWLQJOHYHOV (%YDOXHKDVWKUHHVHWWLQJOHYHOV
$YDLODEOHVHWWLQJUDQJHWR $YDLODEOHVHWWLQJUDQJHWR
2SHUDWLRQ*XLGH
u /HYHOKDVWKHPRVWSRZHU u /HYHOKDVWKHVWURQJHVWHQJLQHEUDNLQJ
u /HYHOKDVWKHOHDVWSRZHU HIIHFW
u /HYHOKDVWKHZHDNHVWHQJLQHEUDNLQJ
7YDOXH 7RUTXHFRQWUROOHYHO HIIHFW
7YDOXHKDVWHQVHWWLQJOHYHOV
$YDLODEOHVHWWLQJUDQJHWR 6PRGH 6XVSHQVLRQPRGH
u /HYHOLVWKHPLQLPXP7RUTXH&RQWUROOHYHO &%56
u /HYHOLVWKHPD[LPXP7RUTXH&RQWURO 6PRGHKDVVL[PRGHV
OHYHO $YDLODEOHPRGHV$$$00DQG0
u /HYHOGHDFWLYDWHVWKH7RUTXH&RQWURO $GMXVWLQJWKHg+/,166PDUW(&V\VWHP
3
&RQWLQXHG
5LGLQJPRGH &RQWLQXHG
6HOHFWLQJWKHULGLQJPRGH
6WRSWKHPRWRUF\FOH 02'(
6HOHFWWKHULGLQJPRGHGLVSOD\ 3
3UHVVWKH 6(/ XS RU 6(/ GRZQ
2SHUDWLRQ*XLGH
EXWWRQZLWKWKHWKURWWOHIXOO\FORVHG 02'(
6(/ XS EXWWRQ
02'(
86(5
6HWWLQJWKHULGLQJPRGH 3UHVVWKH 02'( EXWWRQXQWLO7YDOXHLV
&%5555$ VHOHFWHG
<RXFDQFKDQJHWKH37DQG(%YDOXHVRQ 3UHVVWKH 6(/ XS RU GRZQ EXWWRQ
XQWLOWKHGHVLUHGYDOXHLVGLVSOD\HG
2SHUDWLRQ*XLGH
WKH86(5DQG86(5RIWKHULGLQJPRGH
&%56 u 7YDOXHFDQEHFKDQJHGWROHYHOE\
<RXFDQFKDQJHWKH37(%YDOXHDQG6 SUHVVLQJDQGKROGLQJWKH 6(/ GRZQ
PRGHRQWKH86(5DQG86(5RIWKH EXWWRQDWWKHWLPHRIOHYHO
ULGLQJPRGH 3UHVVWKH 02'( EXWWRQXQWLO(%YDOXHLV
VHOHFWHG
3UHVVWKH 6(/ XS RU GRZQ EXWWRQ
6WRSWKHPRWRUF\FOH
XQWLOWKHGHVLUHGYDOXHLVGLVSOD\HG
6HOHFWWKH86(5RU86(5LQWKHULGLQJ
&%56
PRGH\RXZDQWWRVHW 3
3UHVVDQGKROGWKH 02'( EXWWRQXQWLO3 3UHVVWKH 02'( EXWWRQXQWLO6PRGHLV
YDOXHLVVHOHFWHG VHOHFWHG
3UHVVWKH 6(/ XS RU GRZQ EXWWRQ
XQWLOWKHGHVLUHGYDOXHLVGLVSOD\HG
&RQWLQXHG
5LGLQJPRGH &RQWLQXHG
&%56
3UHVVWKH 6(/ XS RU GRZQ
EXWWRQXQWLOWKHGHVLUHGPRGHLV
2SHUDWLRQ*XLGH
GLVSOD\HG
3UHVVDQGKROGWKH 02'( EXWWRQXQWLO
RUGLQDU\GLVSOD\LVGLVSOD\HG
<RXFDQVWRSVHWWLQJWKHULGLQJPRGHVDWDQ\
WLPHE\SUHVVLQJDQGKROGLQJWKH 02'(
EXWWRQ
3UHVVWKH 02'( EXWWRQ
3UHVVDQGKROGWKH 02'( EXWWRQ
&%5555$ &%56
3UHVVWKH 6(/ XS EXWWRQ
2SHUDWLRQ*XLGH
3UHVVWKH 6(/ GRZQ EXWWRQ
3UHVVDQGKROGWKH 6(/ GRZQ
EXWWRQ
&%56
6WDUWLQJWKH(QJLQH
6WDUW\RXUHQJLQHXVLQJWKHIROORZLQJ 0DNHVXUHWKHHQJLQHVWRSVZLWFKLVLQWKH
SURFHGXUHUHJDUGOHVVRIZKHWKHUWKHHQJLQH 5XQ SRVLWLRQ
LVFROGRUZDUP 7XUQWKHLJQLWLRQVZLWFKWRWKH21SRVLWLRQ
6KLIWWKHWUDQVPLVVLRQWR1HXWUDO 1
2SHUDWLRQ*XLGH
LQGLFDWRUFRPHVRQ $OWHUQDWLYHO\SXOOLQWKH
FOXWFKOHYHUWRVWDUW\RXUPRWRUF\FOHZLWKWKH
WUDQVPLVVLRQLQJHDUVRORQJDVWKHVLGH
VWDQGLVUDLVHG
3UHVVWKHVWDUWEXWWRQZLWKWKHWKURWWOH
FRPSOHWHO\FORVHG
,IWKHHQJLQHGRHVQRWVWDUW
127,&( a 2SHQWKHWKURWWOHIXOO\DQGSUHVVWKHVWDUW
ܬ,IWKHHQJLQHGRHVQRWVWDUWZLWKLQVHFRQGVWXUQWKH EXWWRQIRUVHFRQGV
LJQLWLRQVZLWFKWRWKH2))SRVLWLRQDQGZDLWVHFRQGV b 5HSHDWWKHQRUPDOVWDUWLQJSURFHGXUH
EHIRUHWU\LQJWRVWDUWWKHHQJLQHDJDLQWRUHFRYHU c ,IWKHHQJLQHVWDUWVRSHQWKHWKURWWOHVOLJKWO\
EDWWHU\YROWDJH LILGOLQJLVXQVWDEOH
[( ܬWHQGHGIDVWLGOLQJDQGUHYYLQJWKHHQJLQHFDQ d ,IWKHHQJLQHGRHVQRWVWDUWZDLWVHFRQGV
GDPDJHWKHHQJLQHDQGWKHH[KDXVWV\VWHP EHIRUHWU\LQJVWHSVa bDJDLQ
ܬ6QDSSLQJWKHWKURWWOHRUIDVWLGOLQJIRUPRUHWKDQDERXW
PLQXWHVPD\FDXVHH[KDXVWSLSHGLVFRORUDWLRQ
ܬ7KHHQJLQHZLOOQRWVWDUWLIWKHWKURWWOHLVIXOO\RSHQ
,I(QJLQH:LOO1RW6WDUW 3
6KLIWLQJ*HDUV
<RXUPRWRUF\FOHWUDQVPLVVLRQKDVIRUZDUG 5HFRPPHQGHG6KLIW3RLQWV
JHDUVLQDRQHGRZQILYHXSVKLIWSDWWHUQ 6KLIWLQJ8S
)URPVWWRQG PSK NPK
2SHUDWLRQ*XLGH
)URPQGWRUG PSK NPK
)URPUGWRWK PSK NPK
)URPWKWRWK PSK NPK
)URPWKWRWK PSK NPK
6KLIWLQJ'RZQ
1 )URPWKWRWK PSK NPK
)URPWKWRWK PSK NPK
)URPWKWRUG PSK NPK
,I\RXSXWWKHPRWRUF\FOHLQJHDUZLWKWKH
VLGHVWDQGGRZQWKHHQJLQHZLOOVKXWRII 127,&(
,PSURSHUVKLIWLQJFDQGDPDJHWKHHQJLQH
WUDQVPLVVLRQDQGGULYHWUDLQ$OVRFRDVWLQJRU
WRZLQJWKHPRWRUF\FOHIRUORQJGLVWDQFHVZLWK
WKHHQJLQHRIIFDQGDPDJHWKHWUDQVPLVVLRQ
&RQWLQXHG
6KLIWLQJ*HDUV &RQWLQXHG
4XLFN6KLIWHU ॥ 7KH4XLFN6KLIWHUFDQEHLQGLYLGXDOO\
&%56 WXUQHG21 DFWLYH DQG2)) GHDFWLYDWH
7KLVV\VWHPHQDEOHVYHU\TXLFNXSDQGGRZQ DOVRWKHVKLIWSHGDOORDGOHYHOIRU
2SHUDWLRQ*XLGH
VKLIWLQJZLWKRXWFOXWFKDQGWKURWWOH DFWLYDWLQJWKH4XLFN6KLIWHUFDQEH
RSHUDWLRQV DGMXVWHGGXULQJXSDQGGRZQVKLIWLQJ
u 7KLVV\VWHPGRHVQRWIXQFWLRQZKHQ ॥ ,IWKH3*0),PDOIXQFWLRQLQGLFDWRUODPS
XSVKLIWLQJZLWKWKHWKURWWOHFORVHG FRPHVRQRUWKHJHDUSRVLWLRQLQGLFDWRU
u 7KLVV\VWHPIXQFWLRQVZKHQWKHHQJLQH IODVKHV´µLQWKHFXUUHQWJHDUSRVLWLRQWKH
VSHHGLVPRUHWKDQUPLQ USP RQ 4XLFN6KLIWHUV\VWHPPD\QRWRSHUDWH,I
XSVKLIWLQJRUPRUHWKDQWKHLGOHVSHHGRQ HLWKHURIWKHDERYHRFFXUVFRQWDFW\RXU
GRZQVKLIWLQJ GHDOHUDVVRRQDVSRVVLEOH
u 7KLVV\VWHPGRHVQRWIXQFWLRQZKHQWKH
FOXWFKOHYHULVEHLQJRSHUDWHG
7RFKDQJHWKHVHWWLQJRI4XLFN6KLIWHU
॥ ,I´µLVGLVSOD\HGRQWKHJHDUSRVLWLRQ 3 3
LQGLFDWRUWKH4XLFN6KLIWHUV\VWHPGRHV
QRWRSHUDWH
॥ ,IWKH4XLFN6KLIWHUGRHVQRWRSHUDWH
QRUPDOO\WKHFOXWFKFDQEHXVHGWR
FRPSOHWHWKHVKLIWRSHUDWLRQ
5HIXHOLQJ
2SHQLQJWKH)XHO)LOO&DS
,JQLWLRQNH\ /HYHOSODWH 2SHQWKHORFNFRYHULQVHUWWKHLJQLWLRQNH\
DQGWXUQLWFORFNZLVHWRRSHQWKHFDS
2SHUDWLRQ*XLGH
&ORVLQJWKH)XHO)LOO&DS
$IWHUUHIXHOLQJSXVKWKHIXHOILOOFDSFORVHG
XQWLOLWORFNV
5HPRYHWKHNH\DQGFORVHWKHORFNFRYHU
/RFNFRYHU u 7KHNH\FDQQRWEHUHPRYHGLIWKHFDSLV
)XHOILOOFDS QRWORFNHG
'RQRWILOOZLWKIXHODERYHWKHOHYHOSODWH 3:$51,1*
)XHOW\SH8QOHDGHGJDVROLQHRQO\ *DVROLQHLVKLJKO\IODPPDEOHDQG
5HFRPPHQGHGIXHORFWDQHQXPEHU H[SORVLYH<RXFDQEHEXUQHGRU
3XPS2FWDQH1XPEHU 321 RUKLJKHU VHULRXVO\LQMXUHGZKHQKDQGOLQJIXHO
7DQNFDSDFLW\86JDO /
ܬ6WRSWKHHQJLQHDQGNHHSKHDW
VSDUNVDQGIODPHDZD\
5HIXHOLQJDQG)XHO*XLGHOLQHV 3
ܬ+DQGOHIXHORQO\RXWGRRUV
ܬ:LSHXSVSLOOVLPPHGLDWHO\
6WRUDJH(TXLSPHQW
+HOPHW+ROGHU
3:$51,1*
&%5555$
5LGLQJZLWKDKHOPHWDWWDFKHGWRWKH
7KHKHOPHWKROGHUVDUHORFDWHGRQWKH
KROGHUFDQLQWHUIHUHZLWK\RXUDELOLW\WR
2SHUDWLRQ*XLGH
XQGHUVLGHRIWKHUHDUVHDW
VDIHO\RSHUDWHWKHPRWRUF\FOHDQG
FRXOGOHDGWRDFUDVKLQZKLFK\RXFDQ
+HOPHWKROGHU
EHVHULRXVO\KXUWRUNLOOHG
8VHWKHKHOPHWKROGHURQO\ZKLOH
SDUNHG'RQRWULGHZLWKDKHOPHW
VHFXUHGE\WKHKROGHU
+HOPHW'ULQJ
u 8VHWKHKHOPHWKROGHURQO\ZKHQSDUNHG
5HPRYLQJWKH5HDU6HDW 3
7RRO.LW'RFXPHQW%DJ &%5555$
&%5555$
7KHWRRONLWDQGGRFXPHQWEDJDUHORFDWHG
5HPRYLQJWKHUHDUVHDW 3
&%56
2SHUDWLRQ*XLGH
XQGHUWKHUHDUVHDW
&%56 5HPRYLQJVLQJOHVHDWFRZO 3
7KHWRRONLWDQGGRFXPHQWEDJDUHORFDWHG
XQGHUWKHVLQJOHVHDWFRZO
7RRONLW
5XEEHUVWUDS 'RFXPHQWEDJ
0DLQWHQDQFH
3OHDVHUHDG´,PSRUWDQFHRI0DLQWHQDQFHµDQG´0DLQWHQDQFH)XQGDPHQWDOVµFDUHIXOO\
EHIRUHDWWHPSWLQJDQ\PDLQWHQDQFH5HIHUWR´6SHFLILFDWLRQVµIRUVHUYLFHGDWD
$QRSWLRQDOODUJHUWRRONLWPD\EHDYDLODEOH
&KHFNZLWK\RXU+RQGDGHDOHU VSDUWVGHSDUWPHQW
,PSRUWDQFHRI0DLQWHQDQFH )RULQIRUPDWLRQDERXWWKHH[KDXVWHPLVVLRQDQG
QRLVHHPLVVLRQUHTXLUHPHQWVRIWKH86
.HHSLQJ\RXUPRWRUF\FOHZHOOPDLQWDLQHGLV
(QYLURQPHQWDO3URWHFWLRQ$JHQF\ (3$ WKH
DEVROXWHO\HVVHQWLDOWR\RXUVDIHW\DQGWR
&DOLIRUQLD$LU5HVRXUFHV%RDUG &$5% DQGWKH
SURWHFW\RXULQYHVWPHQWREWDLQPD[LPXP
(QYLURQPHQWDQG&OLPDWH&KDQJH&DQDGD
SHUIRUPDQFHDYRLGEUHDNGRZQVDQGUHGXFHDLU
(&&& 2 3
0DLQWHQDQFH
SROOXWLRQ0DLQWHQDQFHLVWKHRZQHU V 86$
UHVSRQVLELOLW\%HVXUHWRLQVSHFW\RXU
0DLQWHQDQFHUHSODFHPHQWRUUHSDLURIWKH
PRWRUF\FOHEHIRUHHDFKULGHDQGSHUIRUPWKH
HPLVVLRQFRQWUROGHYLFHVDQGV\VWHPVPD\
SHULRGLFFKHFNVVSHFLILHGLQWKH0DLQWHQDQFH
EHSHUIRUPHGE\DQ\PRWRUF\FOHUHSDLU
6FKHGXOH2 3
HVWDEOLVKPHQWRULQGLYLGXDOXVLQJSDUWV
3:$51,1* WKDWDUH´FHUWLILHGµWR(3$VWDQGDUGV
,PSURSHUO\PDLQWDLQLQJ\RXU
PRWRUF\FOHRUIDLOLQJWRFRUUHFWD
SUREOHPEHIRUH\RXULGHFDQFDXVHD
FUDVKLQZKLFK\RXFDQEHVHULRXVO\KXUW
RUNLOOHG
$OZD\VIROORZWKHLQVSHFWLRQDQG
PDLQWHQDQFHUHFRPPHQGDWLRQVDQG
VFKHGXOHVLQWKLVRZQHU VPDQXDO
,PSRUWDQFHRI0DLQWHQDQFH
0DLQWHQDQFH6DIHW\
$OZD\VUHDGWKHPDLQWHQDQFHLQVWUXFWLRQV
EHIRUH\RXEHJLQHDFKWDVNDQGPDNHVXUHWKDW
\RXKDYHWKHWRROVSDUWVDQGVNLOOVUHTXLUHG
:HFDQQRWZDUQ\RXRIHYHU\FRQFHLYDEOH
0DLQWHQDQFH
KD]DUGWKDWFDQDULVHLQSHUIRUPLQJ
PDLQWHQDQFH2QO\\RXFDQGHFLGHZKHWKHURU
QRW\RXVKRXOGSHUIRUPDJLYHQWDVN
)ROORZWKHVHJXLGHOLQHVZKHQSHUIRUPLQJ
PDLQWHQDQFH
॥ 6WRSWKHHQJLQHDQGUHPRYHWKHNH\
॥ 3ODFH\RXUPRWRUF\FOHRQDILUPOHYHO
VXUIDFHXVLQJWKHVLGHVWDQGRUD
PDLQWHQDQFHVWDQGWRSURYLGHVXSSRUW
॥ $OORZWKHHQJLQHPXIIOHUEUDNHVDQGRWKHU
KLJKWHPSHUDWXUHSDUWVWRFRROEHIRUH
VHUYLFLQJDV\RXFDQJHWEXUQHG
॥ 5XQWKHHQJLQHRQO\ZKHQLQVWUXFWHGDQG
GRVRLQDZHOOYHQWLODWHGDUHD
0DLQWHQDQFH6FKHGXOH
7KHPDLQWHQDQFHVFKHGXOHVSHFLILHVWKH $OOVFKHGXOHGPDLQWHQDQFHLVFRQVLGHUHGD
PDLQWHQDQFHUHTXLUHPHQWVQHFHVVDU\WR QRUPDORZQHURSHUDWLQJFRVWDQGZLOOEH
HQVXUHVDIHGHSHQGDEOHSHUIRUPDQFHDQG FKDUJHGWR\RXE\\RXUGHDOHU5HWDLQDOO
SURSHUHPLVVLRQFRQWURO UHFHLSWV,I\RXVHOOWKHPRWRUF\FOHWKHVH
UHFHLSWVVKRXOGEHWUDQVIHUUHGZLWKWKH
PRWRUF\FOHWRWKHQHZRZQHU
0DLQWHQDQFH
0DLQWHQDQFHZRUNVKRXOGEHSHUIRUPHGLQ
DFFRUGDQFHZLWK+RQGD VVWDQGDUGVDQG
VSHFLILFDWLRQVE\SURSHUO\WUDLQHGDQG
HTXLSSHGWHFKQLFLDQV<RXUGHDOHUPHHWVDOO
RIWKHVHUHTXLUHPHQWV.HHSDQDFFXUDWH
UHFRUGRIPDLQWHQDQFHWRKHOSHQVXUHWKDW
\RXUPRWRUF\FOHLVSURSHUO\PDLQWDLQHG
0DNHVXUHWKDWZKRPHYHUSHUIRUPVWKH
PDLQWHQDQFHFRPSOHWHVWKLVUHFRUG
&RQWLQXHG
0DLQWHQDQFH6FKHGXOH
)UHTXHQF\
5HJXODU 5HIHUWR
,WHPV ïPL 5HSODFH SDJH
ïNP
)XHO/LQH ²
7KURWWOH2SHUDWLRQ
$LU&OHDQHU ²
0DLQWHQDQFH
9DOYH&OHDUDQFH ²
(QJLQH2LO <HDU
(QJLQH2LO)LOWHU
(QJLQH,GOH6SHHG ²
5DGLDWRU&RRODQW <HDUV
&RROLQJ6\VWHP ²
6HFRQGDU\$LU6XSSO\6\VWHP ²
(YDSRUDWLYH(PLVVLRQ&RQWURO6\VWHP
²
([KDXVW*DV&RQWURO$FWXDWRU&DEOH ²
0DLQWHQDQFH/HYHO 0DLQWHQDQFH/HJHQG
,QWHUPHGLDWH:HUHFRPPHQGVHUYLFHE\\RXUGHDOHUXQOHVV ,QVSHFW FOHDQDGMXVWOXEULFDWHRUUHSODFHLIQHFHVVDU\
\RXKDYHWKHQHFHVVDU\WRROVDQGDUHPHFKDQLFDOO\VNLOOHG 5HSODFH
3URFHGXUHVDUHSURYLGHGLQDQRIILFLDO+RQGD6HUYLFH /XEULFDWH
0DQXDO 2 3
7HFKQLFDO,QWKHLQWHUHVWRIVDIHW\KDYH\RXUPRWRUF\FOH
VHUYLFHGE\\RXUGHDOHU
0DLQWHQDQFH6FKHGXOH
)UHTXHQF\
5HJXODU 5HIHUWR
,WHPV ïPL 5HSODFH SDJH
ïNP
'ULYH&KDLQ (YHU\PL NP
%UDNH)OXLG <HDUV
%UDNH3DGV:HDU
1RQ(PLVVLRQUHODWHG,WHPV
0DLQWHQDQFH
%UDNH6\VWHP
%UDNHOLJKW6ZLWFK
+HDGOLJKW$LP
&OXWFK6\VWHP
6LGH6WDQG
6XVSHQVLRQ
)URQW)RUN2LO &%56 (YHU\PL NP RUPRQWKV ²
1XWV%ROWV)DVWHQHUV ²
:KHHOV7LUH
6WHHULQJ+HDG%HDULQJV ²
1RWHV
$WKLJKHURGRPHWHUUHDGLQJVUHSHDWDWWKHIUHTXHQF\LQWHUYDOHVWDEOLVKHGKHUH
6HUYLFHPRUHIUHTXHQWO\ZKHQULGLQJLQXQXVXDOO\ZHWRUGXVW\DUHDV
67$7( PHHWV&DOLIRUQLD
5HSODFHPHQWUHTXLUHVPHFKDQLFDOVNLOO
0DLQWHQDQFH)XQGDPHQWDOV
3UHULGH,QVSHFWLRQ
&KHFNWKHIROORZLQJLWHPVDIWHU\RXJHWRQ\RXU
7RHQVXUHVDIHW\LWLV\RXUUHVSRQVLELOLW\WR
PRWRUF\FOH
SHUIRUPDSUHULGHLQVSHFWLRQDQGPDNHVXUH
॥ 7KURWWOHDFWLRQPRYHVVPRRWKO\ZLWKRXW
WKDWDQ\SUREOHP\RXILQGLVFRUUHFWHG$SUH
ELQGLQJ2 3
ULGHLQVSHFWLRQLVDPXVWQRWRQO\IRUVDIHW\EXW
॥ %UDNHOHYHUDQGSHGDORSHUDWHQRUPDOO\
0DLQWHQDQFH
EHFDXVHKDYLQJDEUHDNGRZQRUHYHQDIODWWLUH
॥ 5HIXHOZKHQQHHGHG2 32 3
FDQEHDPDMRULQFRQYHQLHQFH
॥ (QJLQHVWRSVZLWFKIXQFWLRQVSURSHUO\
2 3
&KHFNWKHIROORZLQJLWHPVEHIRUH\RXJHWRQ
\RXUPRWRUF\FOH
&KHFNWKHIROORZLQJLWHPVDWUHJXODULQWHUYDOV
॥ 7LUHWUHDGZHDUDQGDLUSUHVVXUHVDUHZLWKLQ
॥ 2LOOHYHOLVEHWZHHQWKHXSSHUDQGORZHU
OLPLWV2 3
OHYHOPDUNV2 3
॥ /LJKWVKRUQDQGWXUQVLJQDOVRSHUDWH
॥ %UDNHIOXLGOHYHOLV
QRUPDOO\
)URQWEHWZHHQWKH833(5DQG/2:(5OHYHO
॥ &KHFNWKHFRQGLWLRQRIWKHGULYHFKDLQ
PDUNV2 3
$GMXVWVODFNDQGOXEULFDWHDVQHHGHG
5HDUEHWZHHQWKH833(5DQG/2:(5OHYHO
2 3
PDUNV2 3
॥ &RPELQHGZHLJKWLVZLWKLQORDGOLPLWV
॥ (QJLQHFRRODQWOHYHOLVEHWZHHQWKH833(5
2 3
DQG/2:(5OHYHOPDUNV2 3
॥ &DUJRLVVHFXUHGSURSHUO\
॥ 6LGHVWDQGIXQFWLRQVSURSHUO\2 3
॥ 6XVSHQVLRQLVDGMXVWHGWRVXLWORDG2 3
2 3
0DLQWHQDQFH)XQGDPHQWDOV
3HULRGLF&KHFNV $OVRFKHFNWKHRGRPHWHUUHDGLQJDJDLQVWWKH
0DLQWHQDQFH6FKHGXOHDQGSHUIRUPDOO
<RXVKRXOGDOVRSHUIRUPRWKHUSHULRGLF
PDLQWHQDQFHWKDWLVGXH2 3
PDLQWHQDQFHFKHFNVDWOHDVWRQFHDPRQWK
UHJDUGOHVVRIKRZRIWHQ\RXULGHRUPRUHRIWHQ
LI\RXULGHIUHTXHQWO\
0DLQWHQDQFH
&KHFNWKHDLUSUHVVXUH 2 3 H[DPLQHWUHDGIRUZHDUDQG
7LUHVDQGZKHHOV
GDPDJH 2 3 DQGFKHFNWKHZKHHOVIRUGDPDJH
&KHFNWKHHQJLQHRLOOHYHO 2 3 HQJLQHFRRODQWOHYHO 2 3
)OXLGOHYHOV
DQGEUDNHIOXLGOHYHO 2 3
&KHFNWKDWWKHKHDGOLJKWSRVLWLRQOLJKWEUDNHOLJKWWDLOOLJKWWXUQ
/LJKWV
VLJQDOVDQGOLFHQVHSODWHOLJKWDUHZRUNLQJSURSHUO\
&KHFNWKHIUHHSOD\RIWKHFOXWFKOHYHU 2 3 DQGWKURWWOHJULS
&RQWUROV
2 3
&KHFNWKHVODFN 2 3 DGMXVWWKHVODFN 2 3 DQGOXEULFDWH
'ULYHFKDLQ
2 3 DVQHHGHG
)XVHV &KHFNWKDW\RXKDYHDIXOOVXSSO\RIVSDUHIXVHV
1XWV EROWV &KHFNWKHPDMRUQXWVDQGEROWVDQGWLJKWHQDVQHHGHG
0DLQWHQDQFH)XQGDPHQWDOV
5HSODFLQJ3DUWV
$OZD\VXVH+RQGD*HQXLQH3DUWVRUWKHLU
HTXLYDOHQWVWRHQVXUHUHOLDELOLW\DQGVDIHW\
:KHQRUGHULQJFRORUHGFRPSRQHQWVVSHFLI\
WKHPRGHOQDPHFRORUDQGFRGHPHQWLRQHGRQ
0DLQWHQDQFH
WKHFRORUODEHO
7KHFRORUODEHOLVDWWDFKHGRQWKHLQVLGHRIWKH
OHIWGXFW
&RORUODEHO
3:$51,1*
,QVWDOOLQJQRQ+RQGDSDUWVPD\PDNH
\RXUPRWRUF\FOHXQVDIHDQGFDXVHD
FUDVKLQZKLFK\RXFDQEHVHULRXVO\KXUW
RUNLOOHG
$OZD\VXVH+RQGD*HQXLQH3DUWVRU
HTXLYDOHQWVWKDWKDYHEHHQGHVLJQHG
DQGDSSURYHGIRU\RXUPRWRUF\FOH
0DLQWHQDQFH)XQGDPHQWDOV
%DWWHU\ 127,&(
$QLPSURSHUO\GLVSRVHGRIEDWWHU\FDQEH
&%56
KDUPIXOWRWKHHQYLURQPHQWDQGKXPDQKHDOWK
<RXUPRWRUF\FOHKDVDOLWKLXPLRQ OLLRQ
$OZD\VFRQILUPORFDOUHJXODWLRQVIRUSURSHU
EDWWHU\2 3
EDWWHU\GLVSRVDOLQVWUXFWLRQ
&%5555$
0DLQWHQDQFH
<RXUPRWRUF\FOHKDVDPDLQWHQDQFHIUHHW\SH
EDWWHU\<RXGRQRWKDYHWRFKHFNWKHEDWWHU\
HOHFWURO\WHOHYHORUDGGGLVWLOOHGZDWHU&OHDQWKH :KDWWRGRLQDQHPHUJHQF\
EDWWHU\WHUPLQDOVLIWKH\EHFRPHGLUW\RU ,IDQ\RIWKHIROORZLQJRFFXULPPHGLDWHO\VHH
FRUURGHG \RXUGRFWRU
'RQRWUHPRYHWKHEDWWHU\FDSVHDOV7KHUHLV ॥ (OHFWURO\WHVSODVKHVLQWR\RXUH\HV
QRQHHGWRUHPRYHWKHFDSZKHQFKDUJLQJ u :DVK\RXUH\HVUHSHDWHGO\ZLWKFRRO
ZDWHUIRUDWOHDVWPLQXWHV8VLQJZDWHU
XQGHUSUHVVXUHFDQGDPDJH\RXUH\HV
॥ (OHFWURO\WHVSODVKHVRQWR\RXUVNLQ
u 5HPRYHDIIHFWHGFORWKLQJDQGZDVK\RXU
VNLQWKRURXJKO\XVLQJZDWHU
&RQWLQXHG
0DLQWHQDQFH)XQGDPHQWDOV
॥ (OHFWURO\WHVSODVKHVLQWR\RXUPRXWK &OHDQLQJWKH%DWWHU\7HUPLQDOV
u 5LQVHPRXWKWKRURXJKO\ZLWKZDWHUDQG 5HPRYHWKHEDWWHU\2 3
GRQRWVZDOORZ ,IWKHWHUPLQDOVDUHVWDUWLQJWRFRUURGHDQG
DUHFRDWHGZLWKDZKLWHVXEVWDQFHZDVK
3:$51,1* ZLWKZDUPZDWHUDQGZLSHFOHDQ
7KHEDWWHU\JLYHVRIIH[SORVLYHK\GURJHQ ,IWKHWHUPLQDOVDUHKHDYLO\FRUURGHGFOHDQ
0DLQWHQDQFH
JDVGXULQJQRUPDORSHUDWLRQ DQGSROLVKWKHWHUPLQDOVZLWKDZLUHEUXVKRU
VDQGSDSHU:HDUVDIHW\JODVVHV
$VSDUNRUIODPHFDQFDXVHWKHEDWWHU\WR
H[SORGHZLWKHQRXJKIRUFHWRNLOORU
VHULRXVO\KXUW\RX
:HDUSURWHFWLYHFORWKLQJDQGDIDFH
VKLHOGRUKDYHDVNLOOHGPHFKDQLFGRWKH
EDWWHU\VHUYLFLQJ
$IWHUFOHDQLQJUHLQVWDOOWKHEDWWHU\
:$51,1*%DWWHU\SRVWVWHUPLQDOVDQG
UHODWHGDFFHVVRULHVFRQWDLQOHDGDQGOHDG 7KHEDWWHU\KDVDOLPLWHGOLIHVSDQ&RQVXOW\RXU
FRPSRXQGV GHDOHUDERXWZKHQ\RXVKRXOGUHSODFHWKH
:DVK\RXUKDQGVDIWHUKDQGOLQJ EDWWHU\$OZD\VUHSODFHWKHEDWWHU\ZLWKDQRWKHU
PDLQWHQDQFHIUHHEDWWHU\RIWKHVDPHW\SH
0DLQWHQDQFH)XQGDPHQWDOV
&KDUJLQJ 127,&(
,I\RXXVHHOHFWULFDODFFHVVRULHVWKDWGUDLQWKH -XPSVWDUWLQJXVLQJDQDXWRPRELOHEDWWHU\FDQ
EDWWHU\RU\RXGRQRWULGHIUHTXHQWO\ZH GDPDJH\RXUPRWRUF\FOH VHOHFWULFDOV\VWHPDQG
UHFRPPHQGWKDW\RXFKDUJHWKHEDWWHU\HYHU\ LVQRWUHFRPPHQGHG%XPSVWDUWLQJLVDOVRQRW
GD\VXVLQJDFKDUJHUGHVLJQHGVSHFLILFDOO\IRU UHFRPPHQGHG
\RXU+RQGDZKLFKFDQEHSXUFKDVHGIURP\RXU
0DLQWHQDQFH
GHDOHU5HDGWKHLQIRUPDWLRQWKDWFDPHZLWK 127,&(
\RXUEDWWHU\FKDUJHUDQGIROORZWKHLQVWUXFWLRQV ,QVWDOOLQJQRQ+RQGDHOHFWULFDODFFHVVRULHVFDQ
RQWKHEDWWHU\$YRLGXVLQJDQDXWRPRELOHW\SH RYHUORDGWKHHOHFWULFDOV\VWHPGLVFKDUJLQJWKH
EDWWHU\FKDUJHUDVWKHVHFDQRYHUKHDWD EDWWHU\DQGSRVVLEO\GDPDJLQJWKHV\VWHP
PRWRUF\FOHEDWWHU\DQGFDXVHSHUPDQHQW
GDPDJH
/LWKLXP,RQ /L,RQ %DWWHU\
0DNHVXUHWKHLJQLWLRQVZLWFKLVLQWKH2)) &%56
SRVLWLRQEHIRUHFKDUJLQJWKHEDWWHU\ <RXUPRWRUF\FOHKDVDOLWKLXPLRQ OLLRQ
127,&(
EDWWHU\&OHDQWKHEDWWHU\WHUPLQDOVLIWKH\
,PSURSHUFKDUJLQJFDQGDPDJHWKHEDWWHU\,I EHFRPHGLUW\RUFRUURGHG
\RXFDQ·WFKDUJHWKHEDWWHU\RULWDSSHDUVXQDEOH 127,&(
WRKROGDFKDUJHFRQWDFW\RXUGHDOHU $QLPSURSHUO\GLVSRVHGRIEDWWHU\FDQEH
KDUPIXOWRWKHHQYLURQPHQWDQGKXPDQKHDOWK
$OZD\VFRQILUPORFDOUHJXODWLRQVIRUSURSHU
EDWWHU\GLVSRVDOLQVWUXFWLRQ
&RQWLQXHG
0DLQWHQDQFH)XQGDPHQWDOV
:KDWWRGRLQDQHPHUJHQF\ 3:$51,1*
,IDQ\RIWKHIROORZLQJRFFXUVLPPHGLDWHO\VHH
\RXUGRFWRU 7KHEDWWHU\FRQWDLQVIODPPDEOHRUJDQLF
॥ (OHFWURO\WHVSODVKHVLQWR\RXUH\HV VROYHQWDVHOHFWURO\WH
u :DVK\RXUH\HVUHSHDWHGO\ZLWKFRRO
ZDWHUIRUDWPLQXWHV8VLQJZDWHU <RXFDQEHEXUQHGRUVHULRXVO\LQMXUHG
0DLQWHQDQFH
XQGHUSUHVVXUHFDQGDPDJH\RXUH\HV LIWKHEDWWHU\LVKDQGOHGLPSURSHUO\
॥ (OHFWURO\WHVSODVKHVRQWR\RXUVNLQ
u 5HPRYHDIIHFWHGFORWKLQJDQGZDVK\RXU ॥ .HHSWKHEDWWHU\DZD\IURPKHDW
VNLQWKRURXJKO\XVLQJZDWHU
VSDUNVDQGIODPH
॥ (OHFWURO\WHVSODVKHVLQWR\RXUPRXWK
॥ .HHSWKHEDWWHU\RXWRIWKHUHDFKRI
u 5LQVHPRXWKWKRURXJKO\ZLWKZDWHUDQG
GRQRWVZDOORZ FKLOGUHQ
॥ 'RQRWGLVDVVHPEOHRUPRGLI\WKH
EDWWHU\RUEDWWHU\WHUPLQDOV
॥ 'RQRWVKRUWFLUFXLWWKHEDWWHU\ZLWK
PHWDOWRROVRURWKHUPHWDOREMHFWV
॥ 'RQRWVXEMHFWWKHEDWWHU\WR
LPSDFWV
0DLQWHQDQFH)XQGDPHQWDOV
&OHDQLQJWKH%DWWHU\7HUPLQDOV 7KHEDWWHU\KDVDOLPLWHGOLIHVSDQ&RQVXOW\RXU
5HPRYHWKHEDWWHU\2 3 GHDOHUDERXWZKHQ\RXVKRXOGUHSODFHWKH
,IWKHWHUPLQDOVDUHVWDUWLQJWRFRUURGHDQG EDWWHU\$OZD\VUHSODFHWKHEDWWHU\ZLWKDQRWKHU
DUHFRDWHGZLWKDZKLWHVXEVWDQFHZDVK OLWKLXPLRQ OLLRQ EDWWHU\RIWKHVDPHW\SH
ZLWKZDUPZDWHUDQGZLSHFOHDQ
,IWKHWHUPLQDOVDUHKHDYLO\FRUURGHGFOHDQ
0DLQWHQDQFH
DQGSROLVKWKHWHUPLQDOVZLWKDZLUHEUXVKRU
VDQGSDSHU:HDUVDIHW\JODVVHV
$IWHUFOHDQLQJUHLQVWDOOWKHEDWWHU\
&RQWLQXHG
0DLQWHQDQFH)XQGDPHQWDOV
&KDUJLQJ 127,&(
,I\RXXVHHOHFWULFDODFFHVVRULHVWKDWGUDLQWKH 'RQRWMXPSVWDUWDVWKLVFDQGDPDJH\RXU
EDWWHU\RU\RXGRQRWULGHIUHTXHQWO\ZH PRWRUF\FOH VHOHFWULFDOV\VWHPDQGEDWWHU\
UHFRPPHQGWKDW\RXFKDUJHWKHEDWWHU\HYHU\ %XPSVWDUWLQJLVQRWUHFRPPHQGHG
GD\VXVLQJDFKDUJHUUHFRPPHQGHGE\\RXU
OLWKLXPLRQ OLLRQ EDWWHU\PDQXIDFWXUHU 127,&(
0DLQWHQDQFH
&RQWDFW\RXUGHDOHUEHIRUHFKDUJLQJWKH ,QVWDOOLQJQRQ+RQGDHOHFWULFDODFFHVVRULHVFDQ
EDWWHU\ RYHUORDGWKHHOHFWULFDOV\VWHPGLVFKDUJLQJWKH
0DNHVXUHWKHLJQLWLRQVZLWFKLVLQWKH2)) EDWWHU\DQGSRVVLEO\GDPDJLQJWKHV\VWHP
SRVLWLRQEHIRUHFKDUJLQJWKHEDWWHU\
127,&(
2QO\XVHDFKDUJHUUHFRPPHQGHGE\\RXU
OLWKLXPLRQ OLLRQ EDWWHU\PDQXIDFWXUHU8VLQJD
EDWWHU\FKDUJHUWKDWLVQRWUHFRPPHQGHGFDQ
FDXVHSHUPDQHQWGDPDJHWR\RXUEDWWHU\
127,&(
,PSURSHUFKDUJLQJFDQGDPDJHWKHEDWWHU\,I
\RXFDQ·WFKDUJHWKHEDWWHU\RULWDSSHDUVXQDEOH
WRKROGDFKDUJHFRQWDFW\RXUGHDOHU
0DLQWHQDQFH)XQGDPHQWDOV
)XVHV ,IDIXVHIDLOVUHSHDWHGO\\RXOLNHO\KDYHDQ
HOHFWULFDOIDXOW+DYH\RXUPRWRUF\FOHLQVSHFWHG
)XVHVSURWHFWWKHHOHFWULFDOFLUFXLWVRQ\RXU
E\\RXUGHDOHU
PRWRUF\FOH,IVRPHWKLQJHOHFWULFDORQ\RXU
PRWRUF\FOHVWRSVZRUNLQJFKHFNIRUDQG (QJLQH2LO
UHSODFHDQ\EORZQIXVHV2 3
0DLQWHQDQFH
(QJLQHRLOFRQVXPSWLRQYDULHVDQGRLOTXDOLW\
GHWHULRUDWHVDFFRUGLQJWRULGLQJFRQGLWLRQVDQG
,QVSHFWLQJDQG5HSODFLQJ)XVHV WLPHHODSVHG
7XUQWKHLJQLWLRQVZLWFKWRWKH2))SRVLWLRQWR
&KHFNWKHHQJLQHRLOOHYHOUHJXODUO\DQGDGGWKH
UHPRYHDQGLQVSHFWIXVHV,IDIXVHLVEORZQ
UHFRPPHQGHGHQJLQHRLOLIQHFHVVDU\'LUW\RLORU
UHSODFHZLWKDIXVHRIWKHVDPHUDWLQJ)RUIXVH
ROGRLOVKRXOGEHFKDQJHGDVVRRQDVSRVVLEOH
UDWLQJVVHH´6SHFLILFDWLRQVµ2 3
%ORZQIXVH
6HOHFWLQJWKH(QJLQH2LO
)RUUHFRPPHQGHGHQJLQHRLOVHH
´6SHFLILFDWLRQVµ2 3
,I\RXXVHQRQ+RQGDHQJLQHRLOFKHFNWKH
ODEHOWRPDNHVXUHWKDWWKHRLOVDWLVILHVDOORIWKH
IROORZLQJVWDQGDUGV
127,&( ॥ -$627VWDQGDUG 0$
5HSODFLQJDIXVHZLWKRQHWKDWKDVDKLJKHU ॥ 6$(VWDQGDUG :
UDWLQJJUHDWO\LQFUHDVHVWKHFKDQFHRIGDPDJHWR ॥ $3,FODVVLILFDWLRQ 6*RUKLJKHU
WKHHOHFWULFDOV\VWHP
&RQWLQXHG
0DLQWHQDQFH)XQGDPHQWDOV
7KH-$627VWDQGDUGLVDQLQGH[IRUHQJLQH %UDNH)OXLG
RLOVIRUVWURNHPRWRUF\FOHHQJLQHV7KHUHDUH
WZRFODVVHV0$DQG0%)RUH[DPSOHWKH
'RQRWDGGRUUHSODFHEUDNHIOXLGH[FHSWLQDQ
IROORZLQJODEHOVKRZVWKH0$FODVVLILFDWLRQ
HPHUJHQF\8VHRQO\IUHVKEUDNHIOXLGIURPD
VHDOHGFRQWDLQHU,I\RXGRDGGIOXLGKDYHWKH
EUDNHV\VWHPVHUYLFHGE\\RXUGHDOHUDVVRRQDV
2LOFRGH
0DLQWHQDQFH
SRVVLEOH
2LOFODVVLILFDWLRQ 127,&(
%UDNHIOXLGFDQGDPDJHSODVWLFDQGSDLQWHGVXUIDFHV
7KH6$(VWDQGDUGJUDGHVRLOVE\WKHLUYLVFRVLW\
:LSHXSVSLOOVLPPHGLDWHO\DQGZDVKWKRURXJKO\
7KH$3,FODVVLILFDWLRQVSHFLILHVWKHTXDOLW\DQG
5HFRPPHQGHGEUDNHIOXLG
SHUIRUPDQFHUDWLQJRIHQJLQHRLOV8VH6*RU
KLJKHURLOVH[FOXGLQJRLOVPDUNHGDV´(QHUJ\
+RQGD'27%UDNH)OXLGRUHTXLYDOHQW
&RQVHUYLQJµRU´5HVRXUFH&RQVHUYLQJµRQWKH
FLUFXODU$3,VHUYLFHV\PERO 3:$51,1*
&OHDQILOOHUFDSEHIRUHUHPRYLQJ8VH
RQO\'27IOXLGIURPDVHDOHG
FRQWDLQHU
1RWUHFRPPHQGHG 5HFRPPHQGHG
0DLQWHQDQFH)XQGDPHQWDOV
'ULYH&KDLQ 127,&(
8VHRIDQHZFKDLQZLWKZRUQVSURFNHWVZLOOFDXVH
7KHGULYHFKDLQPXVWEHLQVSHFWHGDQG
UDSLGFKDLQZHDU
OXEULFDWHGUHJXODUO\,QVSHFWWKHFKDLQPRUH
IUHTXHQWO\LI\RXRIWHQULGHRQEDGURDGVULGHDW &OHDQLQJDQG/XEULFDWLQJ
KLJKVSHHGRUULGHZLWKUHSHDWHGIDVW $IWHULQVSHFWLQJWKHVODFNFOHDQWKHFKDLQDQG
0DLQWHQDQFH
DFFHOHUDWLRQ2 3 VSURFNHWVZKLOHURWDWLQJWKHUHDUZKHHO8VHDGU\
FORWKZLWKFKDLQFOHDQHUGHVLJQHGVSHFLILFDOO\IRU
,IWKHFKDLQGRHVQRWPRYHVPRRWKO\PDNHV 2ULQJFKDLQVRUQHXWUDOGHWHUJHQW8VHDVRIW
VWUDQJHQRLVHVKDVGDPDJHGUROOHUVKDVORRVH EUXVKLIWKHFKDLQLVGLUW\
SLQVKDVPLVVLQJ2ULQJVRUNLQNVKDYHWKH $IWHUFOHDQLQJZLSHGU\DQGOXEULFDWHZLWKWKH
FKDLQLQVSHFWHGE\\RXUGHDOHU UHFRPPHQGHGOXEULFDQW
$OVRLQVSHFWWKHGULYHVSURFNHWDQGGULYHQ 5HFRPPHQGHGOXEULFDQW
VSURFNHW,IHLWKHUKDVZRUQRUGDPDJHGWHHWK 3UR+RQGD+3&KDLQ/XEHRUHTXLYDOHQW
KDYHWKHVSURFNHWUHSODFHGE\\RXUGHDOHU
&RQWLQXHG
0DLQWHQDQFH)XQGDPHQWDOV
'RQRWXVHDVWHDPFOHDQHUDKLJKSUHVVXUH 5HFRPPHQGHG&RRODQW
FOHDQHUDZLUHEUXVKYRODWLOHVROYHQWVXFKDV
3UR+RQGD+3&RRODQWLVDSUHPL[HGVROXWLRQ
JDVROLQHDQGEHQ]HQHDEUDVLYHFOHDQHUFKDLQ
RIDQWLIUHH]HDQGGLVWLOOHGZDWHU
FOHDQHURUOXEULFDQW127GHVLJQHGVSHFLILFDOO\
IRU2ULQJFKDLQVDVWKHVHFDQGDPDJHWKH &RQFHQWUDWLRQ
UXEEHU2ULQJVHDOV
0DLQWHQDQFH
DQWLIUHH]HDQGGLVWLOOHGZDWHU
$YRLGJHWWLQJOXEULFDQWRQWKHEUDNHVRUWLUHV
$YRLGDSSO\LQJH[FHVVFKDLQOXEULFDQWWRSUHYHQW $FRQFHQWUDWLRQRIDQWLIUHH]HEHORZZLOO
VSUD\RQWR\RXUFORWKHVDQGWKHPRWRUF\FOH QRWSURYLGHSURSHUFRUURVLRQDQGFROG
WHPSHUDWXUHSURWHFWLRQ
$FRQFHQWUDWLRQRIXSWRZLOOSURYLGHEHWWHU
SURWHFWLRQLQFROGHUFOLPDWHV
127,&(
8VLQJFRRODQWQRWVSHFLILHGIRUDOXPLQXPHQJLQHV
RUWDSPLQHUDOZDWHUFDQFDXVHFRUURVLRQ
0DLQWHQDQFH)XQGDPHQWDOV
0DLQWHQDQFH
WLUHVORRNORZ$OZD\VFKHFNDLUSUHVVXUHZKHQ IRUHLJQREMHFWV
\RXUWLUHVDUHFROG HPEHGGHGLQWKHVLGH
(YHQLIWKHGLUHFWLRQRIWKHYDOYHVWHPLV RIWKHWLUHRUWKHWUHDG
FKDQJHGGRQRWUHWXUQLWWRWKHRULJLQDO $OVRLQVSHFWIRUDQ\XQXVXDOEXPSVRUEXOJHVLQ
SRVLWLRQ+DYH\RXUPRWRUF\FOHLQVSHFWHGE\ WKHVLGHZDOOVRIWKHWLUHV
\RXUGHDOHU
,QVSHFWLQJIRU$EQRUPDO:HDU
5LJKWVLGH
,QVSHFWWKHWLUHVIRU
VLJQVRIDEQRUPDOZHDU
RQWKHFRQWDFWVXUIDFH
,QVSHFWLQJ7UHDG'HSWK
,QVSHFWWKHWUHDGZHDULQGLFDWRUV,IWKH\
EHFRPHYLVLEOHUHSODFHWKHWLUHVLPPHGLDWHO\
&RQWLQXHG
0DLQWHQDQFH)XQGDPHQWDOV
)RUVDIHULGLQJ\RXVKRXOGUHSODFHWKHWLUHV
ZKHQWKHPLQLPXPWUHDGGHSWKLVUHDFKHG
3:$51,1*
5LGLQJRQWLUHVWKDWDUHH[FHVVLYHO\ZRUQ
RULPSURSHUO\LQIODWHGFDQFDXVHDFUDVK
LQZKLFK\RXFDQEHVHULRXVO\KXUWRU
NLOOHG
0DLQWHQDQFH
RU7:,
)ROORZDOOLQVWUXFWLRQVLQWKLVRZQHU V
:HDULQGLFDWRU PDQXDOUHJDUGLQJWLUHLQIODWLRQDQG
ORFDWLRQPDUN PDLQWHQDQFH
0DLQWHQDQFH)XQGDPHQWDOV
+DYH\RXUWLUHVUHSODFHGE\\RXUGHDOHU
)RUUHFRPPHQGHGWLUHVDLUSUHVVXUHDQG 3:$51,1*
PLQLPXPWUHDGGHSWKVHH´6SHFLILFDWLRQVµ ,QVWDOOLQJLPSURSHUWLUHVRQ\RXU
2 3
PRWRUF\FOHFDQDGYHUVHO\DIIHFW
)ROORZWKHVHJXLGHOLQHVZKHQHYHU\RXUHSODFH
KDQGOLQJDQGVWDELOLW\DQGFDQFDXVHD
WLUHV
0DLQWHQDQFH
॥ 8VHWKHUHFRPPHQGHGWLUHVRUHTXLYDOHQWV
FUDVKLQZKLFK\RXFDQEHVHULRXVO\KXUW
RIWKHVDPHVL]HFRQVWUXFWLRQVSHHGUDWLQJ RUNLOOHG
DQGORDGUDQJH $OZD\VXVHWKHVL]HDQGW\SHRIWLUHV
॥ +DYHWKHZKHHOEDODQFHGZLWK+RQGD UHFRPPHQGHGLQWKLVRZQHU VPDQXDO
*HQXLQHEDODQFHZHLJKWVRUHTXLYDOHQWDIWHU
WKHWLUHLVLQVWDOOHG
॥ 'RQRWLQVWDOODWXEHLQVLGHDWXEHOHVVWLUHRQ
WKLVPRWRUF\FOH([FHVVLYHKHDWEXLOGXSFDQ
FDXVHWKHWXEHWREXUVW
॥ 8VHRQO\WXEHOHVVWLUHVRQWKLVPRWRUF\FOH
7KHULPVDUHGHVLJQHGIRUWXEHOHVVWLUHVDQG
GXULQJKDUGDFFHOHUDWLRQRUEUDNLQJDWXEH
W\SHWLUHFRXOGVOLSRQWKHULPDQGFDXVHWKH
WLUHWRUDSLGO\GHIODWH
0DLQWHQDQFH)XQGDPHQWDOV
DQGHQYLURQPHQWDOFRQGLWLRQV HYHQZKHQWKH
'27 7KLVLQGLFDWHVWKDWWKHWLUHPHHWVDOO
WLUHVDUHQRWLQXVH
UHTXLUHPHQWVRIWKH86'HSDUWPHQW
,QDGGLWLRQWR\RXUUHJXODULQVSHFWLRQVDQG
RI7UDQVSRUWDWLRQ
PDLQWHQDQFHLWLVUHFRPPHQGHGWKDW\RXKDYH
DQQXDOLQVSHFWLRQVSHUIRUPHGRQFHWKHWLUHV a;;;; )DFWRU\FRGH
UHDFK\HDUVROG,WLVDOVRUHFRPPHQGHGWKDW b;;;; 7LUHW\SHFRGH
DOOWLUHVEHUHPRYHGIURPVHUYLFHDIWHU\HDUV c 'DWHRIPDQXIDFWXUH ZHHN \HDU
IURPWKHGDWHRIPDQXIDFWXUHUHJDUGOHVVRI ([DPSOHZHHNLQ\HDU
WKHLUFRQGLWLRQRUVWDWHRIZHDU 7LUH/DEHOLQJ([DPSOH
7KHODVWIRXUGLJLWVRIWKH7,1 WLUHLGHQWLILFDWLRQ
QXPEHU LQGLFDWHWKHGDWHRIPDQXIDFWXUH 7LUHLGHQWLILFDWLRQ
QXPEHU 7,1
5HPRYLQJ ,QVWDOOLQJ%RG\&RPSRQHQWV
%DWWHU\ &%56
1HJDWLYHWHUPLQDO 3RVLWLYHWHUPLQDO
0DLQWHQDQFH
%DWWHU\
%DWWHU\
5XEEHUVWUDS
5XEEHUVWUDS
&RQWLQXHG
5HPRYLQJ ,QVWDOOLQJ%RG\&RPSRQHQWVu%DWWHU\
5HPRYDO ,QVWDOODWLRQ
0DNHVXUHWKHLJQLWLRQVZLWFKLVLQWKH2)) ,QVWDOOWKHSDUWVLQWKHUHYHUVHRUGHURIUHPRYDO
SRVLWLRQ $OZD\VFRQQHFWWKHSRVLWLYH+WHUPLQDOILUVW
5HPRYHWKHIURQWVHDW2 3 0DNHVXUHWKDWEROWVDQGQXWVDUHWLJKW
8QKRRNWKHUXEEHUVWUDSIURPOHIWVLGH 0DNHVXUHWKHFORFNLQIRUPDWLRQLVFRUUHFW
0DLQWHQDQFH
5HPRYLQJ ,QVWDOOLQJ%RG\&RPSRQHQWVu)URQW6HDW
)URQW6HDW 5HPRYDO
5HPRYHWKHPRXQWLQJEROWVDQGZDVKHUV
0RXQWLQJEROWV DQGWKHQSXOOWKHIURQWVHDWEDFNDQGXS
:DVKHU ,QVWDOODWLRQ
0DLQWHQDQFH
,QVWDOOWKHIURQWVHDWZKLOHLQVHUWLQJWKH
)URQWVHDW WDEVLQWRWKHUHFHVVHV
7DEV ,QVWDOOWKHZDVKHUVDQGPRXQWLQJEROWV
:DVKHU 7LJKWHQWKHPRXQWLQJEROWVVHFXUHO\
0DNHVXUHWKDWWKHVHDWLVORFNHGVHFXUHO\
LQSRVLWLRQWRSXOOLWXSOLJKWO\
5HFHVVHV
5HPRYLQJ ,QVWDOOLQJ%RG\&RPSRQHQWVu5HDU6HDW
5HDU6HDW 5HPRYDO
0RYHWKHVHDWVWUDSIRUZDUG
&%5555$
,QVHUWWKHLJQLWLRQNH\LQWRWKHVHDWORFN
7DE 5HDUVHDW 7XUQWKHLJQLWLRQNH\FORFNZLVHWKHQSXOO
WKHUHDUVHDWIRUZDUGDQGXS
0DLQWHQDQFH
5HFHVV
,QVWDOODWLRQ
,QVHUWWKHWDELQWRWKHUHFHVV
3XVKGRZQRQWKHIURQWRIWKHUHDUVHDW
0DNHVXUHWKDWWKHVHDWLVORFNHGVHFXUHO\
LQSRVLWLRQWRSXOOLWXSOLJKWO\
0RYHWKHVHDWVWUDSWRLWVRULJLQDO
SRVLWLRQ
7KHVHDWORFNVDXWRPDWLFDOO\ZKHQFORVHG
,JQLWLRQNH\ 7DNHFDUHQRWWRORFN\RXUNH\LQWKH
FRPSDUWPHQWXQGHUWKHUHDUVHDW
6HDWVWUDS 6HDWORFN
5HPRYLQJ ,QVWDOOLQJ%RG\&RPSRQHQWVu6LQJOH6HDW&RZO
6LQJOH6HDW&RZO 5HPRYDO
,QVHUWWKHLJQLWLRQNH\LQWRWKHVHDWORFN
&%56
7XUQWKHLJQLWLRQNH\FORFNZLVHWKHQSXOO
6LQJOHVHDWFRZO WKHVLQJOHVHDWFRZOIRUZDUGDQGXS
7DE
0DLQWHQDQFH
5HFHVV ,QVWDOODWLRQ
,QVHUWWKHWDELQWRWKHUHFHVV
3XVKGRZQRQWKHIURQWRIWKHVLQJOHVHDW
FRZO
0DNHVXUHWKDWWKHVLQJOHVHDWFRZOLV
ORFNHGVHFXUHO\LQSRVLWLRQWRSXOOLWXS
OLJKWO\
7KHVLQJOHVHDWFRZOORFNVDXWRPDWLFDOO\ZKHQ
,JQLWLRQNH\ FORVHG
7DNHFDUHQRWWRORFN\RXUNH\LQWKH
FRPSDUWPHQWXQGHUWKHVLQJOHVHDWFRZO
6HDWORFN
5HPRYLQJ ,QVWDOOLQJ%RG\&RPSRQHQWVu8QGHU&RZO
8QGHU&RZO 5HPRYDO
5HPRYHWKHSDQVFUHZVDQGXQGHUFRZO
8QGHUFRZOEROWV EROWV
5HPRYHWKHXQGHUFRZOFDUHIXOO\E\
UHOHDVLQJWKHJXLGHVIURPWKHKRRNVRI
0DLQWHQDQFH
8QGHU WKHPLGGOHFRZOVLGHDVVKRZQLQWKH
FRZO LOOXVWUDWLRQ
,QVWDOODWLRQ
8QGHU ,QVWDOOWKHXQGHUFRZOXVLQJUHYHUVHRIWKH
FRZOEROWV UHPRYDOSURFHGXUH
7XEHV 5RXWHWKHWXEHVWKURXJKWKHRSHQLQJRI
3DQ WKHORZHUFRZO
VFUHZV ,QVWDOODQGWLJKWHQWKHXQGHUFRZOEROWV
*XLGHV VHFXUHO\
,QVWDOODQGWLJKWHQWKHSDQVFUHZV
VHFXUHO\
+RRNV
(QJLQH2LO
&KHFNLQJWKH(QJLQH2LO 2LOILOOFDS
,IWKHHQJLQHLVFROGLGOHWKHHQJLQHIRU 8SSHUOHYHO
WRPLQXWHV
7XUQWKHLJQLWLRQVZLWFKWRWKH2))
0DLQWHQDQFH
SRVLWLRQDQGZDLWIRUWRPLQXWHV
3ODFH\RXUPRWRUF\FOHLQDQXSULJKW
SRVLWLRQRQDILUPOHYHOVXUIDFH
5HPRYHWKHGLSVWLFNDQGZLSHLWFOHDQ
,QVHUWWKHGLSVWLFNXQWLOLWVHDWVEXWGRQ W
/RZHUOHYHO
VFUHZLWLQ
&KHFNWKDWWKHRLOOHYHOLVEHWZHHQWKH
XSSHUOHYHODQGORZHUOHYHOPDUNVLQWKH 'LSVWLFN
GLSVWLFN
6HFXUHO\LQVWDOOWKHGLSVWLFN
(QJLQH2LOu$GGLQJ(QJLQH2LO
$GGLQJ(QJLQH2LO 6HFXUHO\UHLQVWDOOWKHRLOILOOFDS
127,&(
,IWKHHQJLQHRLOLVEHORZRUQHDUWKHORZHU 2YHUILOOLQJZLWKRLORURSHUDWLQJZLWKLQVXIILFLHQW
OHYHOPDUNDGGWKHUHFRPPHQGHGHQJLQHRLO RLOFDQFDXVHGDPDJHWR\RXUHQJLQH'RQRWPL[
2 32 3 GLIIHUHQWEUDQGVDQGJUDGHVRIRLO7KH\PD\
0DLQWHQDQFH
5HPRYHWKHRLOILOOFDS$GGWKH DIIHFWOXEULFDWLRQDQGFOXWFKRSHUDWLRQ
UHFRPPHQGHGRLOXQWLOLWUHDFKHVWKH )RUWKHUHFRPPHQGHGRLODQGRLOVHOHFWLRQ
XSSHUOHYHOPDUN JXLGHOLQHVVHH´0DLQWHQDQFH)XQGDPHQWDOVµ
u 3ODFH\RXUPRWRUF\FOHLQDQXSULJKW 2 3
SRVLWLRQRQDILUPOHYHOVXUIDFHZKHQ
FKHFNLQJWKHRLOOHYHO
u 'RQRWRYHUILOODERYHWKHXSSHUOHYHO
PDUN
u 0DNHVXUHQRIRUHLJQREMHFWVHQWHUWKH
RLOILOOHURSHQLQJ
u :LSHXSDQ\VSLOOVLPPHGLDWHO\
(QJLQH2LOu&KDQJLQJ(QJLQH2LO )LOWHU
0DLQWHQDQFH
8VHDQHZ+RQGD*HQXLQHRLOILOWHURU
HTXLYDOHQWVSHFLILHGIRU\RXUPRGHO
127,&(
8VLQJWKHZURQJRLOILOWHUFDQUHVXOWLQVHULRXV
GDPDJHWRWKHHQJLQH
&RQWLQXHG
(QJLQH2LOu&KDQJLQJ(QJLQH2LO )LOWHU
5HPRYHWKHRLOILOWHUZLWKDILOWHUZUHQFK ,QVWDOOWKHQHZRLOILOWHUDQGWLJKWHQ
DQGOHWWKHUHPDLQLQJRLOGUDLQRXW0DNH
7RUTXHOEIÃIW 1ÃPNJIÃP
VXUHWKHSULRUVHDOLVQRWVWXFNWRWKH
HQJLQH ,QVWDOODQHZVHDOLQJZDVKHURQWRWKH
u 'LVFDUGWKHRLODQGRLOILOWHUDWDQ GUDLQEROW7LJKWHQWKHGUDLQEROW
0DLQWHQDQFH
DSSURYHGUHF\FOLQJFHQWHU
7RUTXHOEIÃIW 1ÃPNJIÃP
)LOOWKHFUDQNFDVHZLWKWKHUHFRPPHQGHG
RLO 2 32 3 DQGLQVWDOOWKHRLOILOO
FDS
5HTXLUHGRLO
:KHQFKDQJLQJRLO HQJLQHRLO
ILOWHU
5XEEHU 86TW /
VHDO :KHQFKDQJLQJRLORQO\
2LOILOWHU
86TW /
$SSO\DWKLQFRDWRIHQJLQHRLOWRWKH
UXEEHUVHDORIDQHZRLOILOWHU &KHFNWKHRLOOHYHO2 3
&KHFNWKDWWKHUHDUHQRRLOOHDNV
,QVWDOOWKHXQGHUFRZO
&RRODQW
&KHFNLQJWKH&RRODQW 5HVHUYHWDQNFDS
833(5OHYHO
&KHFNWKHFRRODQWOHYHOLQWKHUHVHUYHWDQN
ZKLOHWKHHQJLQHLVFROG
0DLQWHQDQFH
3ODFH\RXUPRWRUF\FOHRQDILUPOHYHO
VXUIDFH
+ROG\RXUPRWRUF\FOHLQDQXSULJKW /2:(5OHYHO
SRVLWLRQ 5HVHUYHWDQN
&KHFNWKDWWKHFRRODQWOHYHOLVEHWZHHQ
WKH833(5OHYHODQG/2:(5OHYHOPDUNV $GGLQJ&RRODQW
LQWKHUHVHUYHWDQN
,IWKHFRRODQWOHYHOLVGURSSLQJQRWLFHDEO\RU ,IWKHFRRODQWOHYHOLVEHORZWKH/2:(5OHYHO
WKHUHVHUYHWDQNLVHPSW\\RXOLNHO\KDYHD PDUNDGGWKHUHFRPPHQGHGFRRODQW
VHULRXVOHDN+DYH\RXUPRWRUF\FOHLQVSHFWHG 2 3 XQWLOWKHOHYHOUHDFKHVWKH833(5
E\\RXUGHDOHU OHYHOPDUN
$GGIOXLGRQO\IURPWKHUHVHUYHWDQNFDSDQG
GRQRWUHPRYHWKHUDGLDWRUFDS
&RQWLQXHG
&RRODQWu&KDQJLQJ&RRODQW
5HPRYHWKHUHVHUYHWDQNFDSDQGDGG
3:$51,1*
IOXLGZKLOHPRQLWRULQJWKHFRRODQWOHYHO
5HPRYLQJWKHUDGLDWRUFDSZKLOHWKH
u 'RQRWRYHUILOODERYHWKH833(5OHYHO
HQJLQHLVKRWFDQFDXVHWKHFRRODQWWR
PDUN
VSUD\RXWSRWHQWLDOO\VFDOGLQJ\RX
u 0DNHVXUHQRIRUHLJQREMHFWVHQWHUWKH
0DLQWHQDQFH
UHVHUYHWDQNRSHQLQJ
$OZD\VOHWWKHHQJLQHDQGUDGLDWRUFRRO
6HFXUHO\UHLQVWDOOWKHUHVHUYHWDQNFDS
GRZQEHIRUHUHPRYLQJWKHUDGLDWRUFDS
&KDQJLQJ&RRODQW
+DYH\RXUGHDOHUFKDQJHWKHFRRODQWXQOHVV
\RXKDYHWKHSURSHUWRROVDQGDUH
PHFKDQLFDOO\TXDOLILHG
%UDNHV
&KHFNLQJ%UDNH)OXLG ,IWKHEUDNHIOXLGOHYHOLQHLWKHUUHVHUYRLULV
EHORZWKH/2:(5OHYHOPDUNRUWKHEUDNH
3ODFH\RXUPRWRUF\FOHLQDQXSULJKW OHYHUDQGSHGDOIUHHSOD\EHFRPHVH[FHVVLYH
SRVLWLRQRQDILUPOHYHOVXUIDFH LQVSHFWWKHEUDNHSDGVIRUZHDU
&KHFNWKDWWKHEUDNHIOXLGUHVHUYRLULV ,IWKHEUDNHSDGVDUHQRWZRUQ\RXPRVW
0DLQWHQDQFH
KRUL]RQWDODQGWKDWWKHIOXLGOHYHOLV OLNHO\KDYHDOHDN+DYH\RXUPRWRUF\FOH
EHWZHHQWKH/2:(5OHYHODQG833(5 LQVSHFWHGE\\RXUGHDOHU
OHYHOPDUNV
)URQW 5HDU
)URQWEUDNHIOXLGUHVHUYRLU 5HDUEUDNHIOXLGUHVHUYRLU
833(5OHYHOPDUN 833(5OHYHOPDUN
/2:(5OHYHOPDUN
/2:(5OHYHOPDUN
%UDNHVu,QVSHFWLQJWKH%UDNH3DGV
EUDNHSDGLVZRUQWRWKHERWWRPRIWKH ULJKWRIWKHPRWRUF\FOH
LQGLFDWRU ,IQHFHVVDU\KDYHWKHSDGVUHSODFHGE\\RXU
5HDU 7KHSDGVQHHGWREHUHSODFHGLIDEUDNH GHDOHU
SDGLVZRUQWRWKHLQGLFDWRU $OZD\VUHSODFHERWKOHIWDQGULJKWEUDNHSDGV
DWWKHVDPHWLPH
)URQW 5HDU
&%5555$ &%56
3DGV
3DGV
:HDULQGLFDWRU
:HDU :HDULQGLFDWRU :HDU :HDULQGLFDWRU 'LVF
LQGLFDWRU 'LVF LQGLFDWRU
%UDNHVu$GMXVWLQJWKH%UDNH/LJKW6ZLWFK
$GMXVWLQJWKH%UDNH/LJKW
6ZLWFK
&KHFNWKHRSHUDWLRQRIWKHEUDNHOLJKWVZLWFK
+ROGWKHEUDNHOLJKWVZLWFKDQGWXUQWKH
0DLQWHQDQFH
DGMXVWLQJQXWLQWKHGLUHFWLRQ$LIWKHVZLWFK
RSHUDWHVWRRODWHRUWXUQWKHQXWLQWKH
GLUHFWLRQ%LIWKHVZLWFKRSHUDWHVWRRVRRQ
%UDNHOLJKWVZLWFK
%
$
$GMXVWLQJQXW
6LGH6WDQG
&KHFNLQJWKH6LGH6WDQG 6WDUWWKHHQJLQHSXOOWKHFOXWFKOHYHULQ
DQGVKLIWWKHWUDQVPLVVLRQLQWRJHDU
/RZHUWKHVLGHVWDQGDOOWKHZD\7KH
HQJLQHVKRXOGVWRSDV\RXORZHUWKHVLGH
VWDQG,IWKHHQJLQHGRHVQ WVWRSKDYH
0DLQWHQDQFH
\RXUPRWRUF\FOHLQVSHFWHGE\\RXUGHDOHU
6LGHVWDQG
VSULQJ
&KHFNWKDWWKHVLGHVWDQGRSHUDWHV
VPRRWKO\,IWKHVLGHVWDQGLVVWLIIRU
VTXHDN\FOHDQWKHSLYRWDUHDDQG
OXEULFDWHWKHSLYRWEROWZLWKFOHDQJUHDVH
&KHFNWKHVSULQJIRUGDPDJHRUORVVRI
WHQVLRQ
6LWRQWKHPRWRUF\FOHVKLIWWKH
WUDQVPLVVLRQWR1HXWUDODQGUDLVHWKHVLGH
VWDQG
'ULYH&KDLQ
,QVSHFWLQJWKH'ULYH&KDLQ
6ODFN
&KHFNWKHGULYHFKDLQVODFNDWVHYHUDOSRLQWV
DORQJWKHFKDLQ,IWKHVODFNLVQRWFRQVWDQWDW
0DLQWHQDQFH
DOOSRLQWVVRPHOLQNVPD\EHNLQNHGDQG
ELQGLQJ
+DYHWKHFKDLQLQVSHFWHGE\\RXUGHDOHU
6KLIWWKHWUDQVPLVVLRQWR1HXWUDO6WRSWKH
HQJLQH
3ODFH\RXUPRWRUF\FOHRQLWVVLGHVWDQGRQ
5ROOWKHPRWRUF\FOHIRUZDUGDQGFKHFN
DILUPOHYHOVXUIDFH
WKDWWKHFKDLQPRYHVVPRRWKO\
&KHFNWKHVODFNLQWKHORZHUKDOIRIWKH
,QVSHFWWKHVSURFNHWV2 3
GULYHFKDLQPLGZD\EHWZHHQWKH
&OHDQDQGOXEULFDWHWKHGULYHFKDLQ
VSURFNHWV
2 3
'ULYHFKDLQVODFN
LQ PP
u 'RQRWULGH\RXUPRWRUF\FOHLIWKH
VODFNH[FHHGVLQ PP
'ULYH&KDLQu$GMXVWLQJWKH'ULYH&KDLQ6ODFN
$GMXVWLQJWKH'ULYH&KDLQ6ODFN /RFNQXW
$GMXVWLQJEROW
$GMXVWLQJWKHFKDLQUHTXLUHVVSHFLDOWRROV $GMXVWLQJSODWH
+DYHWKHGULYHFKDLQVODFNDGMXVWHGE\\RXU
GHDOHU
0DLQWHQDQFH
:KHQDGMXVWLQJWKHGULYHFKDLQVODFNEH
FDUHIXOQRWWRGDPDJHWKHZKHHOVSHHG
VHQVRUDQGSXOVHUULQJ
5HDUD[OHQXW 6FDOHJUDGXDWLRQV
6KLIWWKHWUDQVPLVVLRQWR1HXWUDO6WRSWKH ZDVKHU
HQJLQH /RFNQXW
3ODFH\RXUPRWRUF\FOHRQLWVVLGHVWDQGRQ $GMXVWLQJSODWH
DILUPOHYHOVXUIDFH
/RRVHQWKHUHDUD[OHQXW
/RRVHQWKHORFNQXWVRQERWKDGMXVWLQJ
EROWV
6FDOHJUDGXDWLRQV
$GMXVWLQJEROW
'ULYH&KDLQu$GMXVWLQJWKH'ULYH&KDLQ6ODFN
7XUQERWKDGMXVWLQJEROWVDQHTXDO 7LJKWHQWKHUHDUD[OHQXW
QXPEHURIWXUQVXQWLOWKHFRUUHFWGULYH
7RUTXHOEIÃIW 1ÃPNJIÃP
FKDLQVODFNLVREWDLQHG7XUQWKHDGMXVWLQJ
EROWVFRXQWHUFORFNZLVHWRWLJKWHQWKH +ROGWKHDGMXVWLQJEROWVDQGWLJKWHQWKH
FKDLQ7XUQWKHDGMXVWLQJEROWVFORFNZLVH ORFNQXWV
0DLQWHQDQFH
DQGSXVKWKHUHDUZKHHOWRZDUGWKHIURQW 5HFKHFNGULYHFKDLQVODFN
WRSURYLGHPRUHVODFN
$GMXVWWKHVODFNDWDSRLQWPLGZD\ ,IDWRUTXHZUHQFKZDVQRWXVHGIRU
EHWZHHQWKHIURQWVSURFNHWDQGWKHUHDU LQVWDOODWLRQVHH\RXUGHDOHUDVVRRQDV
ZKHHOVSURFNHW SRVVLEOHWRYHULI\SURSHUDVVHPEO\
&KHFNWKHGULYHFKDLQVODFN2 3 ,PSURSHUDVVHPEO\PD\OHDGWRORVVRI
&KHFNUHDUD[OHDOLJQPHQWE\PDNLQJVXUH EUDNLQJFDSDFLW\
WKHHQGRIWKHFKDLQDGMXVWLQJSODWHDOLJQV
ZLWKWKHVFDOHJUDGXDWLRQVRQERWKVLGHV
RIWKHVZLQJDUP
%RWKPDUNVVKRXOGFRUUHVSRQG,IWKHD[OH
LVPLVDOLJQHGWXUQWKHULJKWRUOHIW
DGMXVWLQJEROWXQWLOWKHPDUNVDUHDOLJQHG
DQGUHFKHFNFKDLQVODFN
&RQWLQXHG
'ULYH&KDLQu$GMXVWLQJWKH'ULYH&KDLQ6ODFN
&KHFNLQJWKH'ULYH&KDLQ:HDU
&KHFNWKHFKDLQZHDUODEHOZKHQDGMXVWLQJ
WKHGULYHFKDLQ,IWKHIURQWHGJHRIWKH
DGMXVWLQJSODWHHQWHUVWKHUHG]RQHRQWKH
ODEHODIWHUWKHFKDLQKDVEHHQDGMXVWHGWRWKH
0DLQWHQDQFH
SURSHUVODFNWKHFKDLQLVH[FHVVLYHO\ZRUQ
DQGPXVWEHUHSODFHG
&KDLQ5.52=
,IQHFHVVDU\KDYHWKHGULYHFKDLQUHSODFHGE\\RXU
GHDOHU
5HG]RQH
$GMXVWLQJSODWH
&OXWFK
&KHFNLQJWKH&OXWFK &KHFNWKHFOXWFKFDEOHIRUNLQNVRUVLJQVRI
ZHDU,IQHFHVVDU\KDYHLWUHSODFHGE\\RXU
&KHFNLQJWKH&OXWFK/HYHU)UHHSOD\ GHDOHU
&KHFNWKHFOXWFKOHYHUIUHHSOD\ /XEULFDWHWKHFOXWFKFDEOHZLWKD
FRPPHUFLDOO\DYDLODEOHFDEOHOXEULFDQWWR
0DLQWHQDQFH
)UHHSOD\DWWKHFOXWFKOHYHU SUHYHQWSUHPDWXUHZHDUDQGFRUURVLRQ
LQ PP
127,&(
&OXWFKOHYHU ,PSURSHUIUHHSOD\DGMXVWPHQWFDQFDXVH
)UHHSOD\
SUHPDWXUHFOXWFKZHDU
&OXWFKu$GMXVWLQJWKH&OXWFK/HYHU)UHHSOD\
$GMXVWLQJWKH&OXWFK/HYHU 8SSHUFOXWFKFDEOHDGMXVWHU
)UHHSOD\
ẳ
8SSHU$GMXVWPHQW
0DLQWHQDQFH
$WWHPSWDGMXVWPHQWZLWKWKHXSSHUFOXWFK
FDEOHDGMXVWHUILUVW
ằ
7XUQWKHFOXWFKFDEOHDGMXVWHUXQWLOWKH
IUHHSOD\LVLQ PP
&OXWFKu$GMXVWLQJWKH&OXWFK/HYHU)UHHSOD\
/RZHU$GMXVWPHQW 8QGHUFRZO
,IWKHXSSHUFOXWFKFDEOHDGMXVWHULVWKUHDGHG EROW
RXWQHDULWVOLPLWRUWKHFRUUHFWIUHHSOD\
FDQQRWEHREWDLQHGDWWHPSWDGMXVWPHQWZLWK
WKHORZHUFOXWFKFDEOHDGMXVWLQJQXW
0DLQWHQDQFH
7XUQWKHXSSHUFOXWFKFDEOHDGMXVWHUDOO
WKHZD\LQ WRSURYLGHPD[LPXPIUHHSOD\
5HPRYHWKHXQGHUFRZO2 3
5HPRYHWKHSDQVFUHZDQGXQGHUFRZO
EROW
5HPRYHWKHUHDUXQGHUFRYHU 5HDUXQGHU
3DQVFUHZ FRYHU
&RQWLQXHG
&OXWFKu$GMXVWLQJWKH&OXWFK/HYHU)UHHSOD\
/RRVHQWKHORZHUORFNQXW
/RZHUORFNQXW $GMXVWLQJQXW
7XUQWKHDGMXVWLQJQXWXQWLOWKHFOXWFK
OHYHUIUHHSOD\LVLQ PP
7LJKWHQWKHORZHUORFNQXWDQGFKHFNWKH
FOXWFKOHYHUIUHHSOD\
0DLQWHQDQFH
,QVWDOOWKHUHDUXQGHUFRYHUXVLQJUHYHUVH ²
RIWKHUHPRYDOSURFHGXUH
,QVWDOODQGWLJKWHQWKHXQGHUFRZOEROW
DQGSDQVFUHZVHFXUHO\
,QVWDOOWKHXQGHUFRZO2 3
6WDUWWKHHQJLQHSXOOWKHFOXWFKOHYHULQ
DQGVKLIWLQWRJHDU0DNHVXUHWKHHQJLQH
GRHVQRWVWDOODQGWKHPRWRUF\FOHGRHV ,ISURSHUDGMXVWPHQWFDQQRWEHREWDLQHGRU
QRWFUHHS*UDGXDOO\UHOHDVHWKHFOXWFK WKHFOXWFKGRHVQRWZRUNFRUUHFWO\VHH\RXU
OHYHUDQGRSHQWKHWKURWWOH<RXU GHDOHU
PRWRUF\FOHVKRXOGPRYHVPRRWKO\DQG
DFFHOHUDWHJUDGXDOO\
7KURWWOH
&KHFNLQJWKH7KURWWOH
:LWKWKHHQJLQHRIIFKHFNWKDWWKHWKURWWOH
URWDWHVVPRRWKO\IURPIXOO\FORVHGWRIXOO\
RSHQ,IWKHWKURWWOHGRHVQRWPRYHVPRRWKO\
0DLQWHQDQFH
FORVHDXWRPDWLFDOO\KDYHWKHPRWRUF\FOH
LQVSHFWHGE\\RXUGHDOHU
7KURWWOH
2WKHU$GMXVWPHQWV
$GMXVWLQJWKH+HDGOLJKW$LP 6FUHZV
<RXFDQDGMXVWYHUWLFDODLPRIWKHKHDGOLJKW
IRUSURSHUDOLJQPHQW7XUQWKHVFUHZLQRU
RXWDVQHFHVVDU\XVLQJD3KLOOLSVVFUHZGULYHU
0DLQWHQDQFH
2EH\ORFDOODZVDQGUHJXODWLRQV
/HIWVLGH 5DLVH 5LJKWVLGH
/RZHU
/RZHU 5DLVH
2WKHU$GMXVWPHQWVu$GMXVWLQJWKH%UDNH/HYHU
$GMXVWLQJWKH%UDNH/HYHU ,QGH[PDUN
<RXFDQDGMXVWWKHGLVWDQFHEHWZHHQWKHWLS
RIWKHEUDNHOHYHUDQGKDQGOHJULS
$GMXVWHU
$GMXVWPHQWPHWKRG
0DLQWHQDQFH
7XUQWKHDGMXVWHUXQWLOWKHQXPEHUVDOLJQZLWK )RUZDUG
WKHLQGH[PDUNZKLOHSXVKLQJWKHOHYHU
IRUZDUGLQWKHGHVLUHGSRVLWLRQ %UDNHOHYHU
$IWHUDGMXVWPHQWFKHFNWKDWWKHOHYHU +DQGOHJULS
RSHUDWHVFRUUHFWO\EHIRUHULGLQJ
127,&(
'RQRWWXUQWKHDGMXVWHUEH\RQGLWVQDWXUDOOLPLW
2WKHU$GMXVWPHQWVu$GMXVWLQJWKH)URQW6XVSHQVLRQ
$GMXVWLQJWKH)URQW6XVSHQVLRQ
6SULQJ3UHORDG
&%5555$
<RXFDQDGMXVWWKHVSULQJSUHORDGE\WKH
0DLQWHQDQFH
DGMXVWHUWRVXLWWKHORDGRUWKHURDGVXUIDFH
7KHVSULQJSUHORDGDGMXVWHUKDVWXUQV
7XUQFORFNZLVHWRLQFUHDVHVSULQJSUHORDG $GMXVWHU
KDUG RUWXUQFRXQWHUFORFNZLVHWRGHFUHDVH
VSULQJSUHORDG VRIW 7KHVWDQGDUGSRVLWLRQLV 127,&(
WKHWXUQVIURPWKHIXOOVRIWSRVLWLRQ 'RQRWWXUQWKHDGMXVWHUEH\RQGLWVOLPLWV
$GMXVWERWKOHIWDQGULJKWIRUNVWRWKHVDPHVSULQJ
SUHORDG
2WKHU$GMXVWPHQWVu$GMXVWLQJWKH)URQW6XVSHQVLRQ
5HERXQG'DPSLQJ 127,&(
&%5555$ 'RQRWWXUQWKHDGMXVWHUEH\RQGLWVOLPLWV
$GMXVWERWKOHIWDQGULJKWIRUNVWRWKHVDPH
<RXFDQDGMXVWWKHUHERXQGGDPSLQJE\WKH
UHERXQGGDPSLQJ
7(1DGMXVWHUWRVXLWWKHORDGRUWKHURDG
VXUIDFH
0DLQWHQDQFH
7KH7(1DGMXVWHUKDVWXUQV
7XUQFORFNZLVHWRLQFUHDVHUHERXQGGDPSLQJ
KDUG RUWXUQFRXQWHUFORFNZLVHWRGHFUHDVH
UHERXQGGDPSLQJ VRIW 7KHVWDQGDUG
SRVLWLRQLVWXUQVIURPWKHIXOOKDUGSRVLWLRQ
7(1DGMXVWHU
&RQWLQXHG
2WKHU$GMXVWPHQWVu$GMXVWLQJWKH)URQW6XVSHQVLRQ
&RPSUHVVLRQ'DPSLQJ 127,&(
&%5555$ 'RQRWWXUQWKHDGMXVWHUEH\RQGLWVOLPLWV
$GMXVWERWKOHIWDQGULJKWIRUNVWRWKHVDPH
<RXFDQDGMXVWWKHFRPSUHVVLRQGDPSLQJE\
FRPSUHVVLRQGDPSLQJ
WKH&20DGMXVWHUWRVXLWWKHORDGRUWKHURDG
VXUIDFH
0DLQWHQDQFH
7KH&20DGMXVWHUKDVWXUQV
7XUQFORFNZLVHWRLQFUHDVHFRPSUHVVLRQ
GDPSLQJ KDUG RUWXUQFRXQWHUFORFNZLVHWR
GHFUHDVHFRPSUHVVLRQGDPSLQJ VRIW 7KH
VWDQGDUGSRVLWLRQLVWXUQVIURPWKHIXOOKDUG
SRVLWLRQ
&20DGMXVWHU
2WKHU$GMXVWPHQWVu$GMXVWLQJWKH5HDU6XVSHQVLRQ
$GMXVWLQJWKH5HDU6XVSHQVLRQ 3LQVSDQQHU
6SULQJ3UHORDG
&%5555$
<RXFDQDGMXVWWKHVSULQJSUHORDGE\WKH
0DLQWHQDQFH
DGMXVWHUWRVXLWWKHORDGRUWKHURDGVXUIDFH
7XUQWKHDGMXVWHUXVLQJWKHSLQVSDQQHU $GMXVWHU
7KHSUHORDGDGMXVWHUKDVSRVLWLRQV
3RVLWLRQVWRDUHIRUDGHFUHDVHVSULQJ
SUHORDG VRIW RUWXUQWKHSRVLWLRQWR 127,&(
LQFUHDVHVSULQJSUHORDG KDUG 7KHVWDQGDUG 'RQRWWXUQWKHDGMXVWHUEH\RQGLWVOLPLWV
SRVLWLRQLV $WWHPSWLQJWRDGMXVWGLUHFWO\IURPWRRUWR
PD\GDPDJHWKHVKRFNDEVRUEHU
127,&(
7KHUHDUVKRFNDEVRUEHUGDPSHUXQLWFRQWDLQV
KLJKSUHVVXUHQLWURJHQJDV'RQRWDWWHPSWWR
GLVDVVHPEOHVHUYLFHRULPSURSHUO\GLVSRVHRI
WKHGDPSHU6HH\RXUGHDOHU
&RQWLQXHG
2WKHU$GMXVWPHQWVu$GMXVWLQJWKH5HDU6XVSHQVLRQ
5HERXQG'DPSLQJ
&%5555$
<RXFDQDGMXVWWKHUHERXQGGDPSLQJE\WKH
7(1DGMXVWHUWRVXLWWKHORDGRUWKHURDG
VXUIDFH
0DLQWHQDQFH
7KH7(1DGMXVWHUKDVWXUQV
7XUQFORFNZLVHWRLQFUHDVHUHERXQGGDPSLQJ 7(1DGMXVWHU
KDUG RUWXUQFRXQWHUFORFNZLVHWRGHFUHDVH
UHERXQGGDPSLQJ VRIW 127,&(
7KHVWDQGDUGSRVLWLRQLVWXUQVIURPWKH 'RQRWWXUQWKHDGMXVWHUEH\RQGLWVOLPLWV
IXOOKDUGSRVLWLRQ
127,&(
7KHUHDUVKRFNDEVRUEHUGDPSHUXQLWFRQWDLQV
KLJKSUHVVXUHQLWURJHQJDV'RQRWDWWHPSWWR
GLVDVVHPEOHVHUYLFHRULPSURSHUO\GLVSRVHRI
WKHGDPSHU6HH\RXUGHDOHU
2WKHU$GMXVWPHQWVu$GMXVWLQJWKH5HDU6XVSHQVLRQ
&RPSUHVVLRQ'DPSLQJ
&%5555$
<RXFDQDGMXVWWKHFRPSUHVVLRQGDPSLQJE\
WKH&20DGMXVWHUWRVXLWWKHORDGRUWKHURDG
VXUIDFH
0DLQWHQDQFH
7KH&20DGMXVWHUKDVWXUQV
7XUQFORFNZLVHWRLQFUHDVHFRPSUHVVLRQ &20DGMXVWHU
GDPSLQJ KDUG RUWXUQFRXQWHUFORFNZLVHWR
GHFUHDVHFRPSUHVVLRQGDPSLQJ VRIW
127,&(
7KHVWDQGDUGSRVLWLRQLVWXUQVIURPWKHIXOO
'RQRWWXUQWKHDGMXVWHUEH\RQGLWVOLPLWV
KDUGSRVLWLRQ
127,&(
7KHUHDUVKRFNDEVRUEHUGDPSHUXQLWFRQWDLQV
KLJKSUHVVXUHQLWURJHQJDV'RQRWDWWHPSWWR
GLVDVVHPEOHVHUYLFHRULPSURSHUO\GLVSRVHRI
WKHGDPSHU6HH\RXUGHDOHU
2WKHU$GMXVWPHQWVu$GMXVWLQJWKHg+/,166PDUW(&6\VWHP
$GMXVWLQJWKHg+/,166PDUW(& RSWLPXPUHERXQGDQGFRPSUHVVLRQ
GDPSLQJIRUFHIRUURDGDUHSURYLGHG
6\VWHP
&%56
7KHV\VWHPFRQWLQXDOO\DGMXVWVFRPSUHVVLRQ
DQGUHERXQGGDPSLQJOHYHOVDFFRUGLQJWR
7KLVPRGHOLVHTXLSSHGZLWKWKHg+/,16
0DLQWHQDQFH
WKHVLWXDWLRQ
6PDUW(&V\VWHP
7KLVV\VWHPFRQVLVWVRIIURQWDQGUHDU
<RXFDQDGMXVWVWKHIURQWDQGUHDU
VXVSHQVLRQDQG6XVSHQVLRQ&RQWURO8QLW
VXVSHQVLRQSUHORDGPDQXDOO\
6&8
g+/,166PDUW(&LVDWUDGHPDUNRIg+/,165$&,1*$%6ZHGHQ
7KLVV\VWHPSURYLGHVSUHSURJUDPPHG
GDPSLQJFKDUDFWHULVWLFVRSWLPL]HGIRU
GLIIHUHQWVLWXDWLRQIRUWKHIURQWDQGUHDU
VXVSHQVLRQ
7KHIURQWDQGUHDUVXVSHQVLRQFRQVWDQWO\
GHWHUPLQHULGLQJFRQGLWLRQVDVWKH6&8
UHFHLYHVVLJQDOVIURPWKHGLIIHUHQWFRQWURO
XQLWVRQWKHPRWRUF\FOH$VDUHVXOWWKH
2WKHU$GMXVWPHQWVu$GMXVWLQJWKHg+/,166PDUW(&6\VWHP
)URQW6SULQJ3UHORDG 0DNHVXUHWKHLJQLWLRQVZLWFKLVLQWKH2))
<RXFDQDGMXVWWKHVSULQJSUHORDGE\WKH SRVLWLRQ2 3
DGMXVWHUWRVXLWWKHORDGRUWKHURDGVXUIDFH 6OLGHWKHFRQQHFWRUFRYHUDQGWKHQ
GLVFRQQHFWWKHIURQWVXVSHQVLRQ
FRQQHFWRUIURPWKHFRXSOHUFOLS
3XOO
0DLQWHQDQFH
&RQQHFWRUFRYHU 'LVFRQQHFWWKHIURQWVXVSHQVLRQ
FRQQHFWRU
u 'RQRWUHPRYHE\SXOOLQJRQWKHZLUH
KDUQHVV
&RXSOHUFOLS
$GMXVWHUV
)URQWVXVSHQVLRQ
3XVK FRQQHFWRU
&RQWLQXHG
2WKHU$GMXVWPHQWVu$GMXVWLQJWKHg+/,166PDUW(&6\VWHP
7XUQFORFNZLVHWRLQFUHDVHVSULQJSUHORDG &RQQHFWWKHIURQWVXVSHQVLRQFRQQHFWRU
KDUG RUWXUQFRXQWHUFORFNZLVHWR WRWKHFRXSOHUFOLSDQGWKHQLQVWDOOWKH
GHFUHDVHVSULQJSUHORDG VRIW FRQQHFWRUFRYHU
7KHVWDQGDUGSRVLWLRQLVWKHWXUQVIURP
WKHIXOOVRIWSRVLWLRQ
0DLQWHQDQFH
127,&(
'RQRWWXUQWKHDGMXVWHUEH\RQGLWVOLPLWV
$GMXVWERWKOHIWDQGULJKWIRUNVWRWKHVDPHVSULQJ
SUHORDG
$IWHUWKHDGMXVWPHQWFRQQHFWWKHIURQW
VXVSHQVLRQFRQQHFWRU
u %HFDUHIXOQRWWRDOORZZDWHURUGXVWWR
HQWHUWKHFRQQHFWRU
u 0DNHVXUHWRLQVWDOOWKHFRQQHFWRU
FRPSOHWHO\
2WKHU$GMXVWPHQWVu$GMXVWLQJWKHg+/,166PDUW(&6\VWHP
5HDU6SULQJ3UHORDG
<RXFDQDGMXVWWKHVSULQJSUHORDGE\WKH $GMXVWHU
DGMXVWHUNQREWRVXLWWKHORDGRUWKHURDG
VXUIDFH
6
7XUQFORFNZLVHWRLQFUHDVHVSULQJSUHORDG
0DLQWHQDQFH
KDUG RUWXUQFRXQWHUFORFNZLVHWRGHFUHDVH
VSULQJSUHORDG VRIW
7KHVWDQGDUGSRVLWLRQLVWXUQVIURPWKHIXOO +
KDUGSRVLWLRQ
127,&(
'RQRWWXUQWKHDGMXVWHUEH\RQGLWVOLPLWV
127,&(
7KHUHDUVKRFNDEVRUEHUGDPSHUXQLWFRQWDLQV
KLJKSUHVVXUHQLWURJHQJDV'RQRWDWWHPSWWR
GLVDVVHPEOHVHUYLFHRULPSURSHUO\GLVSRVHRI
WKHGDPSHU6HH\RXUGHDOHU
&RQWLQXHG
2WKHU$GMXVWPHQWVu$GMXVWLQJWKHg+/,166PDUW(&6\VWHP
'DPSLQJ$GMXVWPHQW ´2%7LµDOORZVWKHULGHUWRDIIHFWWKH
<RXFDQVHOHFW$PRGHZKLFKDXWRPDWLFDOO\ FKDUDFWHULVWLFV
DGMXVWVGDPSLQJDFFRUGLQJWRWKHULGLQJ
VLWXDWLRQDQG0$18$/PRGHZKLFKDOORZV $GMXVWDEOH2%7LVXSSRUWLWHPVDQGULGLQJ
GDPSLQJOHYHOWREHVHWPDQXDOO\ VLWXDWLRQVIRUHDFK$PRGHDUHDVIROORZV
0DLQWHQDQFH
$ 2%7LVXSSRUWLWHPV
6LWXDWLRQ
PRGH %5$.( $&& &251(5 *(1(5$/
$PRGH
WUDFN
$PRGHZLOODXWRPDWLFDOO\DGMXVW $ ULGLQJ
$ $ $ $
FRPSUHVVLRQDQGUHERXQGGDPSLQJOHYHOV ZLQGLQJ
$ $ 1$ 1$ $
LQGLYLGXDOO\IRUWKHIURQWIRUNDQGUHDU URDGV
VWUHHW
VXVSHQVLRQWRSURYLGHGHVLUHGFKDQJHLQ $ ULGLQJ
$ 1$ 1$ $
EHKDYLRURIWKHPRWRUF\FOH
$$GMXVWDEOH
$PRGHSURYLGHVPRGHV $$DQG$ 1$1RWDGMXVWDEOH
ZLWKGLIIHUHQWULGLQJIHHODQGULGH
FKDUDFWHULVWLFVIRUYDULRXVVLWXDWLRQV
'HIDXOWVRI$PRGHFDQEHDGMXVWHGXVLQJ
WKHg+/,162EMHFWLYH%DVHG7XQLQJLQWHUIDFH
2%7L
2WKHU$GMXVWPHQWVu$GMXVWLQJWKHg+/,166PDUW(&6\VWHP
0DLQWHQDQFH
0RWRUF\FOHIHHOVPRUHVWDEOHHVSHFLDOO\
GXULQJKDUGDFFHOHUDWLRQRXWRIFRUQHU
8VHIXOWRLQFUHDVHZHLJKWWUDQVIHUWR
LQFUHDVHUHDUWLUHORDG
&RQWLQXHG
2WKHU$GMXVWPHQWVu$GMXVWLQJWKHg+/,166PDUW(&6\VWHP
0RUHDJLOLW\HVSHFLDOO\LQPLGGOHRI )RU$PRGH
FRUQHU *RRGIRUKLJKJULSWLUHDQGKLJKURDG
*RRGVHWWLQJIRUUDLQRUORZJULS VXUIDFHWHPSHUDWXUH
FRQGLWLRQ *RRGVHWWLQJIRUUDLQRUORZJULS
FRQGLWLRQ
)RU$DQG$PRGH
7XQLQJWKHREMHFWLYHPRUHWRZDUGVFRPIRUW
7RDGMXVWPHQWWKH´%5$.(µ´$&&µ
´&251(5µDQG´*(1(5$/µ2 3
2 3
7RVHOHFWWKH6PRGH2 3
2WKHU$GMXVWPHQWVu$GMXVWLQJWKHg+/,166PDUW(&6\VWHP
0$18$/PRGH (DFK0$18$/PRGHDOORZVWKHIROORZLQJ
7KHVXVSHQVLRQVHWWLQJFDQEHIL[HGDWD GDPSLQJOHYHOWREHDGMXVWHGDVGHVLUHG
FHUWDLQYDOXHRQFRPSUHVVLRQDQGUHERXQG )5&20&RPSUHVVLRQGDPSLQJIRUIURQW
GDPSLQJRIWKHIURQWDQGUHDUVXVSHQVLRQV VXVSHQVLRQ
)55(%5HERXQGGDPSLQJIRUIURQW
0DLQWHQDQFH
7KHGDPSLQJRIIURQWDQGUHDUVXVSHQVLRQ VXVSHQVLRQ
FDQQRWEHFKDQJHGE\ULGLQJEHKDYLRU 55&20&RPSUHVVLRQGDPSLQJIRUUHDU
DXWRPDWLFDOO\ VXVSHQVLRQ
555(%5HERXQGGDPSLQJIRUUHDU
0$18$/PRGHSURYLGHVPRGHV 00 VXVSHQVLRQ
DQG0
3UHVHWRI0LVVXLWDEOHIRUWUDFNULGLQJ 7RDGMXVWPHQWWKH´)5&20µ´)55(%µ
3UHVHWRI0LVVXLWDEOHIRUZLQGLQJURDGV ´55&20µDQG´555(%µ2 32 3
3UHVHWRI0LVVXLWDEOHIRUVWUHHWULGLQJ 7RVHOHFWWKH6PRGH2 3
7URXEOHVKRRWLQJ
6WDUWHU0RWRU2SHUDWHV%XW 6WDUWHU0RWRU'RHV1RW
(QJLQH'RHV1RW6WDUW 2SHUDWH
&KHFNWKHIROORZLQJLWHPV &KHFNWKHIROORZLQJLWHPV
॥ &KHFNWKHFRUUHFWHQJLQHVWDUWLQJ ॥ &KHFNWKHFRUUHFWHQJLQHVWDUWLQJ
VHTXHQFH2 3 VHTXHQFH2 3
7URXEOHVKRRWLQJ
॥ &KHFNWKDWWKHUHLVJDVROLQHLQWKHIXHO ॥ 0DNHVXUHHQJLQHVWRSVZLWFKLVLQWKH
WDQN 5XQ SRVLWLRQ2 3
॥ &KHFNLIWKH3*0),PDOIXQFWLRQLQGLFDWRU ॥ &KHFNIRUDEORZQIXVH2 3
ODPS 0,/ LVRQ ॥ &KHFNIRUDORRVHEDWWHU\FRQQHFWLRQRU
u ,IWKHLQGLFDWRUOLJKWLVRQFRQWDFW\RXU EDWWHU\WHUPLQDOFRUURVLRQ2 32 3
GHDOHUDVVRRQDVSRVVLEOH ॥ &KHFNWKHFRQGLWLRQRIWKHEDWWHU\
2 3
,IWKHSUREOHPFRQWLQXHVKDYH\RXU
PRWRUF\FOHLQVSHFWHGE\\RXUGHDOHU
2YHUKHDWLQJ +LJKFRRODQWWHPSHUDWXUHLQGLFDWRULVRQ
7KHHQJLQHLVRYHUKHDWLQJZKHQWKHIROORZLQJ &KHFNWKDWWKHUDGLDWRUIDQLVRSHUDWLQJ
RFFXUV DQGWKHQWXUQWKHLJQLWLRQVZLWFKWRWKH
॥ +LJKFRRODQWWHPSHUDWXUHLQGLFDWRU 2))SRVLWLRQ
FRPHVRQ ,IWKHIDQLVQRWRSHUDWLQJ
॥ $FFHOHUDWLRQEHFRPHVVOXJJLVK 6XVSHFWDIDXOW'RQRWVWDUWWKHHQJLQH
,IWKLVRFFXUVSXOOVDIHO\WRWKHVLGHRIWKH 7UDQVSRUW\RXUPRWRUF\FOHWR\RXUGHDOHU
URDGDQGSHUIRUPWKHIROORZLQJ ,IWKHIDQLVRSHUDWLQJ
7URXEOHVKRRWLQJ
SURFHGXUH $OORZWKHHQJLQHWRFRROZLWKWKHLJQLWLRQ
([WHQGHGIDVWLGOLQJPD\FDXVHWKHKLJK VZLWFKLQWKH2))SRVLWLRQ
FRRODQWWHPSHUDWXUHLQGLFDWRUWRFRPHRQ $IWHUWKHHQJLQHKDVFRROHGLQVSHFWWKH
127,&(
UDGLDWRUKRVHDQGFKHFNLIWKHUHLVDOHDN
&RQWLQXLQJWRULGHZLWKDQRYHUKHDWHGHQJLQH 2 3
FDQFDXVHVHULRXVGDPDJHWRWKHHQJLQH ,IWKHUHLVDOHDN
'RQRWVWDUWWKHHQJLQH7UDQVSRUW\RXU
6WRSWKHHQJLQHXVLQJWKHLJQLWLRQVZLWFK PRWRUF\FOHWR\RXUGHDOHU
DQGWKHQWXUQWKHLJQLWLRQVZLWFKWRWKH &KHFNWKHFRRODQWOHYHOLQWKHUHVHUYH
21SRVLWLRQ WDQN2 3
u $GGFRRODQWDVQHFHVVDU\
,IFKHFNQRUPDO\RXPD\FRQWLQXH
ULGLQJEXWFORVHO\PRQLWRUWKHKLJK
FRRODQWWHPSHUDWXUHLQGLFDWRU
:DUQLQJ,QGLFDWRUV2QRU)ODVKLQJ
/RZ2LO3UHVVXUH,QGLFDWRU ,IWKHHQJLQHRLOOHYHOJRHVGRZQUDSLGO\\RXU
PRWRUF\FOHPD\KDYHDOHDNRUDQRWKHU
,IWKHORZRLOSUHVVXUHLQGLFDWRUFRPHVRQ VHULRXVSUREOHP+DYH\RXUPRWRUF\FOH
SXOOVDIHO\WRWKHVLGHRIWKHURDGDQGVWRS LQVSHFWHGE\\RXUGHDOHU
WKHHQJLQH
127,&(
3*0), 3URJUDPPHG)XHO
,QMHFWLRQ 0DOIXQFWLRQ
7URXEOHVKRRWLQJ
&RQWLQXLQJWRULGHZLWKORZRLOSUHVVXUHFDQ
FDXVHVHULRXVGDPDJHWRWKHHQJLQH
,QGLFDWRU/DPS 0,/
&KHFNWKHHQJLQHRLOOHYHODQGDGGRLODV
QHFHVVDU\2 32 3 ,IWKHLQGLFDWRUFRPHVRQZKLOHULGLQJ\RX
6WDUWWKHHQJLQH PD\KDYHDVHULRXVSUREOHPZLWKWKH3*0),
u 2QO\FRQWLQXHULGLQJLIWKHORZRLO V\VWHP5HGXFHVSHHGDQGKDYH\RXU
SUHVVXUHLQGLFDWRUJRHVRII PRWRUF\FOHLQVSHFWHGE\\RXUGHDOHUDVVRRQ
5DSLGDFFHOHUDWLRQPD\PRPHQWDULO\FDXVH DVSRVVLEOH
WKHORZRLOSUHVVXUHLQGLFDWRUWRFRPHRQ
HVSHFLDOO\LIWKHRLOLVDWRUQHDUWKHORZOHYHO
,IWKHORZRLOSUHVVXUHLQGLFDWRUVWD\VRQZKHQ
WKHRLOOHYHOLVDWWKHSURSHUOHYHOVWRSWKH
HQJLQHDQGFRQWDFW\RXUGHDOHU
:DUQLQJ,QGLFDWRUV2QRU)ODVKLQJu$%6 $QWLORFN%UDNH6\VWHP ,QGLFDWRU
SUREOHPZLWKWKH$%65HGXFH\RXUVSHHG
DQGKDYH\RXUPRWRUF\FOHLQVSHFWHGE\\RXU VZLWFKWRWKH2))SRVLWLRQDQGWKHQWRWKH
GHDOHUDVVRRQDVSRVVLEOH 21SRVLWLRQDJDLQ7KH$%6LQGLFDWRUZLOOJR
RIIDIWHU\RXUVSHHGUHDFKHVPSK
NPK
॥ ,QGLFDWRUFRPHVRQRUVWDUWVIODVKLQJZKLOH
ULGLQJ
,QGLFDWRUGRHVQRWFRPHRQZKHQWKH
॥
+(6' +RQGD(OHFWURQLF
LJQLWLRQVZLWFKLVLQWKH21SRVLWLRQ
॥ ,QGLFDWRUGRHVQRWJRRIIDWVSHHGVDERYH 6WHHULQJ'DPSHU ,QGLFDWRU
PSK NPK
,IWKHLQGLFDWRUFRPHVRQZKLOHULGLQJ\RX
PD\KDYHDVHULRXVSUREOHPZLWKWKH+(6'
5HGXFHVSHHGDQGKDYH\RXUPRWRUF\FOH
LQVSHFWHGE\\RXUGHDOHUDVVRRQDVSRVVLEOH
:DUQLQJ,QGLFDWRUV2QRU)ODVKLQJu7RUTXH&RQWURO,QGLFDWRU
7RUTXH&RQWURO,QGLFDWRU KDYHWRFRPSOHWHO\FORVHWKHWKURWWOHWR
UHJDLQQRUPDOULGLQJDELOLW\
,IWKHLQGLFDWRURSHUDWHVLQRQHRIWKHIROORZLQJ
ZD\V\RXPD\KDYHDVHULRXVSUREOHPZLWK 7KH7RUTXH&RQWUROLQGLFDWRUPD\FRPHRQLI
WKH7RUTXH&RQWURO5HGXFH\RXUVSHHGDQG \RXURWDWHWKHUHDUZKHHOZKLOH\RXU
KDYH\RXUPRWRUF\FOHLQVSHFWHGE\\RXU PRWRUF\FOHLVOLIWHGRIIWKHJURXQG,QWKLVFDVH
GHDOHUDVVRRQDVSRVVLEOH WXUQWKHLJQLWLRQVZLWFKWRWKH2))SRVLWLRQ
7URXEOHVKRRWLQJ
DQGWKHQWRWKH21SRVLWLRQDJDLQ7KH
॥ ,QGLFDWRUFRPHVDQGVWD\VRQ VROLG ZKLOH 7RUTXH&RQWUROLQGLFDWRUZLOOJRRIIDIWHU\RXU
ULGLQJ VSHHGUHDFKHVPSK NPK
॥ ,QGLFDWRUGRHVQRWFRPHRQZKHQWKH
LJQLWLRQVZLWFKLVWXUQHGWRWKH21SRVLWLRQ &%555
॥ ,QGLFDWRUGRHVQRWJRRIIDWVSHHGVDERYH 7KH7RUTXH&RQWUROLQGLFDWRUFRPHRQZKHQ
PSK NPK WKHIURQWRUUHDUZKHHOORFNV,QWKLVFDVHWKH
7RUTXH&RQWUROZLOOQRWIXQFWLRQ
(YHQZKHQWKH7RUTXH&RQWUROLQGLFDWRULVRQ ,QWKLVFDVHWXUQWKHLJQLWLRQVZLWFKWRWKH2))
\RXUPRWRUF\FOHZLOOKDYHQRUPDOULGLQJDELOLW\ SRVLWLRQDQGWKHQWRWKH21SRVLWLRQDJDLQ
ZLWKRXW7RUTXH&RQWUROIXQFWLRQ 7KH7RUTXH&RQWUROLQGLFDWRUZLOOJRRIIDIWHU
u :KHQWKHLQGLFDWRUFRPHVRQZKLOHWKH \RXUVSHHGUHDFKHVPSK NPK
7RUTXH&RQWUROLVLQRSHUDWLRQ\RXZLOO
7LUH3XQFWXUH
5HSDLULQJDSXQFWXUHRUUHPRYLQJDZKHHO
3:$51,1*
UHTXLUHVVSHFLDOWRROVDQGWHFKQLFDOH[SHUWLVH
5LGLQJ\RXUPRWRUF\FOHZLWKD
:HUHFRPPHQG\RXKDYHWKLVW\SHRIVHUYLFH
WHPSRUDU\WLUHUHSDLUFDQEHULVN\,IWKH
SHUIRUPHGE\\RXUGHDOHU
WHPSRUDU\UHSDLUIDLOV\RXFDQFUDVK
$IWHUDQHPHUJHQF\UHSDLUDOZD\VKDYHWKH
DQGEHVHULRXVO\LQMXUHGRUNLOOHG
WLUHLQVSHFWHGUHSODFHGE\\RXUGHDOHU
7URXEOHVKRRWLQJ
(PHUJHQF\5HSDLU8VLQJD7LUH ,I\RXPXVWULGHZLWKDWHPSRUDU\WLUH
UHSDLUULGHVORZO\DQGFDUHIXOO\DQGGR
5HSDLU.LW QRWH[FHHGPSK NPK XQWLOWKH
,I\RXUWLUHKDVDPLQRUSXQFWXUH\RXFDQ WLUHLVUHSODFHG
PDNHDQHPHUJHQF\UHSDLUXVLQJDWXEHOHVV
WLUHUHSDLUNLW
)ROORZWKHLQVWUXFWLRQVSURYLGHGZLWKWKH
HPHUJHQF\WLUHUHSDLUNLW
5HPRYLQJ:KHHOV
5LGLQJ\RXUPRWRUF\FOHZLWKDWHPSRUDU\WLUH )ROORZWKHVHSURFHGXUHVLI\RXQHHGWR
UHSDLULVYHU\ULVN\'RQRWH[FHHGPSK UHPRYHDZKHHOLQRUGHUWRUHSDLUD
NPK +DYHWKHWLUHUHSODFHGE\\RXU SXQFWXUH
GHDOHUDVVRRQDVSRVVLEOH
7LUH3XQFWXUHu5HPRYLQJ:KHHOV
:KHQUHPRYLQJDQGLQVWDOOLQJWKHZKHHOEH &%5555$
FDUHIXOQRWWRGDPDJHWKHZKHHOVSHHG %UDNHFDOLSHU
VHQVRUDQGSXOVHUULQJ
)URQW:KHHO :KHHOVSHHG
5HPRYDO 0RXQWLQJ VHQVRU
3ODFH\RXUPRWRUF\FOHRQDILUPOHYHO EROWV
7URXEOHVKRRWLQJ
VXUIDFH
&RYHUWKHERWKVLGHRIWKHIURQWZKHHODQG 7DSHRUFORWK 3XOVHUULQJ
EUDNHFDOLSHUZLWKSURWHFWLYHWDSHRUFORWK
&%56
%UDNHFDOLSHU
:KHHOVSHHG
VHQVRU
0RXQWLQJ
EROWV
7DSHRUFORWK 3XOVHUULQJ
&RQWLQXHG
7LUH3XQFWXUHu5HPRYLQJ:KHHOV
2QWKHULJKWVLGHUHPRYHWKHPRXQWLQJ &%5555$
EROWVDQGUHPRYHWKHEUDNHFDOLSHU 5LJKWVLGHFROODU
2QWKHOHIWVLGHUHPRYHWKHPRXQWLQJ
EROWVDQGUHPRYHWKHEUDNHFDOLSHU
u 6XSSRUWWKHEUDNHFDOLSHUDVVHPEO\VR
WKDWLWGRHVQ WKDQJIURPWKHEUDNH
KRVH'RQRWWZLVWWKHEUDNHKRVH
7URXEOHVKRRWLQJ
u $YRLGJHWWLQJJUHDVHRLORUGLUWRQWKH
GLVFRUSDGVXUIDFHV )URQWD[OHEROW $[OHSLQFKEROWV
u 'RQRWSXOOWKHIURQWEUDNHOHYHUZKLOH
WKHEUDNHFDOLSHULVUHPRYHG &%56
u 7DNHFDUHWRSUHYHQWWKHEUDNHFDOLSHU 5LJKWVLGHFROODU
IURPVFUDWFKLQJWKHZKHHOGXULQJ
UHPRYDO
5HPRYHWKHIURQWD[OHEROW
/RRVHQWKHULJKWD[OHSLQFKEROWV
6XSSRUW\RXUPRWRUF\FOHVHFXUHO\DQG
UDLVHWKHIURQWZKHHORIIWKHJURXQGXVLQJ
DPDLQWHQDQFHVWDQGRUDKRLVW )URQWD[OHEROW $[OHSLQFKEROWV
7LUH3XQFWXUHu5HPRYLQJ:KHHOV
/RRVHQWKHOHIWD[OHSLQFKEROWV &%56
2QWKHOHIWVLGHZLWKGUDZWKHIURQWD[OH
$[OHSLQFKEROWV /HIWVLGHFROODU
VKDIWDQGUHPRYHWKHVLGHFROODUVDQG
ZKHHO
&%5555$
$[OHSLQFKEROWV /HIWVLGHFROODU
7URXEOHVKRRWLQJ
)URQWD[OHVKDIW
)URQWD[OHVKDIW
&RQWLQXHG
7LUH3XQFWXUHu5HPRYLQJ:KHHOV
,QVWDOODWLRQ &%56
$WWDFKWKHVLGHFROODUVWRWKHZKHHO
2QWKHOHIWVLGHSODFHWKHZKHHOEHWZHHQ 6XUIDFHRI
IRUNOHJ
WKHIRUNOHJVDQGLQVHUWWKHOLJKWO\JUHDVHG
IURQWD[OHVKDIWWRWKHHQGWKURXJKWKH
OHIWIRUNOHJDQGZKHHOKXE
$OLJQWKHHQGRIWKHIURQWD[OHVKDIWZLWK
7URXEOHVKRRWLQJ
WKHVXUIDFHRIWKHIRUNOHJ
&%5555$
6XUIDFHRI (QGRIIURQW
IRUNOHJ D[OHVKDIW
7LJKWHQWKHOHIWD[OHSLQFKEROWVWRKROG
WKHD[OH
7LJKWHQWKHD[OHEROW
7RUTXHOEIÃIW 1ÃPNJIÃP
(QGRIIURQW /RRVHQWKHOHIWD[OHSLQFKEROWV
D[OHVKDIW 7LJKWHQWKHULJKWD[OHSLQFKEROWV
7RUTXHOEIÃIW 1ÃPNJIÃP
7LUH3XQFWXUHu5HPRYLQJ:KHHOV
,QVWDOOWKHULJKWEUDNHFDOLSHUDQGWLJKWHQ 127,&(
WKHPRXQWLQJEROWV :KHQLQVWDOOLQJDZKHHORUFDOLSHULQWRRULJLQDO
&%5555$ SRVLWLRQFDUHIXOO\ILWWKHEUDNHGLVFEHWZHHQWKH
SDGVWRDYRLGVFUDWFKLQJWKHP
7RUTXHOEIÃIW 1ÃPNJIÃP
/RZHUWKHIURQWZKHHORQWKHJURXQG
&%56 $SSO\WKHEUDNHOHYHUVHYHUDOWLPHV7KHQ
7URXEOHVKRRWLQJ
7RUTXHOEIÃIW 1ÃPNJIÃP SXPSWKHIRUNVHYHUDOWLPHV
5HWLJKWHQWKHOHIWD[OHSLQFKEROWV
,QVWDOOWKHOHIWEUDNHFDOLSHUDQGWLJKWHQ
WKHPRXQWLQJEROWV 7RUTXHOEIÃIW 1ÃPNJIÃP
&%5555$
5DLVHWKHIURQWZKHHORIIWKHJURXQG
7RUTXHOEIÃIW 1ÃPNJIÃP DJDLQDQGFKHFNWKDWWKHZKHHOURWDWHV
IUHHO\DIWHU\RXUHOHDVHWKHEUDNH
&%56 8QFRYHUWKHSURWHFWLYHWDSHRUFORWK
7RUTXHOEIÃIW 1ÃPNJIÃP
,IDWRUTXHZUHQFKZDVQRWXVHGIRU
u 7DNHFDUHWRSUHYHQWWKHEUDNHFDOLSHU LQVWDOODWLRQVHH\RXUGHDOHUDVVRRQDV
IURPVFUDWFKLQJWKHZKHHOGXULQJ SRVVLEOHWRYHULI\SURSHUDVVHPEO\
LQVWDOODWLRQ ,PSURSHUDVVHPEO\PD\OHDGWRORVVRI
u 8VHQHZPRXQWLQJEROWVZKHQ EUDNLQJFDSDFLW\
LQVWDOOLQJWKHEUDNHFDOLSHU
&RQWLQXHG
7LUH3XQFWXUHu5HPRYLQJ:KHHOV
5HDU:KHHO 5HPRYHWKHGULYHFKDLQIURPWKHGULYHQ
5HPRYDO VSURFNHWE\SXVKLQJWKHUHDUZKHHO
3ODFH\RXUPRWRUF\FOHRQDILUPOHYHO IRUZDUG
VXUIDFH 5HPRYHWKHUHDUD[OHVKDIWDGMXVWLQJ
6XSSRUW\RXUPRWRUF\FOHVHFXUHO\DQG SODWHV
UDLVHWKHUHDUZKHHORIIWKHJURXQGXVLQJD /RFNQXW &ROODU 'ULYHFKDLQ
7URXEOHVKRRWLQJ
PDLQWHQDQFHVWDQGRUDKRLVW
/RRVHQWKHUHDUD[OHQXWORFNQXWVDQG
WXUQWKHDGMXVWLQJEROWVVRWKHUHDUZKHHO
FDQEHPRYHGDOOWKHZD\IRUZDUGIRU
PD[LPXPGULYHFKDLQVODFN
5HPRYHWKHUHDUD[OHQXWDQGZDVKHU
$GMXVWLQJ
:KHHOVSHHG &ROODU EROW
VHQVRU $GMXVWLQJ
SODWH 5HDUD[OHVKDIW $GMXVWLQJSODWH
$GMXVWLQJ
3XOVHUULQJ EROW
/RFNQXW
:DVKHU 5HDUD[OHQXW
7LUH3XQFWXUHu5HPRYLQJ:KHHOV
5HPRYHWKHEUDNHFDOLSHUEUDFNHWUHDU ,QVWDOODWLRQ
ZKHHODQGVLGHFROODUV 7RLQVWDOOWKHUHDUZKHHOUHYHUVHWKH
u 6XSSRUWWKHEUDNHFDOLSHUDVVHPEO\VR UHPRYDOSURFHGXUH
WKDWLWGRHVQ·WKDQJIURPWKHEUDNH u 7DNHFDUHWRSUHYHQWWKHEUDNHFDOLSHU
KRVH'RQRWWZLVWWKHEUDNHKRVH IURPVFUDWFKLQJWKHZKHHOGXULQJ
u $YRLGJHWWLQJJUHDVHRLORUGLUWRQWKH LQVWDOODWLRQ
GLVFRUSDGVXUIDFHV
7URXEOHVKRRWLQJ
127,&(
u 'RQRWSXVKWKHEUDNHSHGDOZKLOHWKH :KHQLQVWDOOLQJDZKHHORUFDOLSHULQWRRULJLQDO
ZKHHOLVUHPRYHG SRVLWLRQFDUHIXOO\ILWWKHEUDNHGLVFEHWZHHQWKH
SDGVWRDYRLGVFUDWFKLQJWKHP
&RQWLQXHG
7LUH3XQFWXUHu5HPRYLQJ:KHHOV
WKHEUDNHGUDJVRULIWKHZKHHOGRHVQRW
URWDWHIUHHO\
/XJ
,IDWRUTXHZUHQFKZDVQRWXVHGIRU
LQVWDOODWLRQVHH\RXUGHDOHUDVVRRQDV
SRVVLEOHWRYHULI\SURSHUDVVHPEO\
,PSURSHUDVVHPEO\PD\OHDGWRORVVRI
EUDNLQJFDSDFLW\
(OHFWULFDO7URXEOH
%DWWHU\*RHV'HDG &%56
%DWWHU\FKDUJLQJLVQHHGHG
&%5555$ $EDWWHU\FKDUJHUUHFRPPHQGHGE\\RXU
&KDUJHWKHEDWWHU\XVLQJDPRWRUF\FOH OLWKLXPLRQ OLLRQ EDWWHU\PDQXIDFWXUHULV
EDWWHU\FKDUJHU QHHGHGIRUEDWWHU\FKDUJLQJ
5HPRYHWKHEDWWHU\IURPWKHPRWRUF\FOH &RQWDFW\RXUGHDOHUEHIRUHFKDUJLQJWKH
EHIRUHFKDUJLQJ EDWWHU\
7URXEOHVKRRWLQJ
'RQRWXVHDQDXWRPRELOHW\SHEDWWHU\ 5HPRYHWKHEDWWHU\IURPWKHPRWRUF\FOH
FKDUJHUDVWKHVHFDQRYHUKHDWDPRWRUF\FOH EHIRUHFKDUJLQJ
EDWWHU\DQGFDXVHSHUPDQHQWGDPDJH,IWKH 127,&(
EDWWHU\GRHVQRWUHFRYHUDIWHUUHFKDUJLQJ 2QO\XVHDFKDUJHUUHFRPPHQGHGE\\RXU
FRQWDFW\RXUGHDOHU OLWKLXPLRQ OLLRQ EDWWHU\PDQXIDFWXUHU8VLQJD
EDWWHU\FKDUJHUWKDWLVQRWUHFRPPHQGHGFDQ
127,&(
FDXVHSHUPDQHQWGDPDJHWR\RXUEDWWHU\
-XPSVWDUWLQJXVLQJDQDXWRPRELOHEDWWHU\FDQ
GDPDJH\RXUPRWRUF\FOH·VHOHFWULFDOV\VWHPDQG ,IWKHEDWWHU\GRHVQRWUHFRYHUDIWHU
LVQRWUHFRPPHQGHG%XPSVWDUWLQJLVDOVRQRW
UHFKDUJLQJFRQWDFW\RXUGHDOHU
UHFRPPHQGHG
127,&(
'RQRWMXPSVWDUWDVWKLVFDQGDPDJH\RXU
PRWRUF\FOH VHOHFWULFDOV\VWHPDQGEDWWHU\
%XPSVWDUWLQJLVQRWUHFRPPHQGHG
(OHFWULFDO7URXEOHu%XUQHGRXW/LJKW%XOE
%XUQHGRXW/LJKW%XOE +HDGOLJKWV
$OOOLJKWEXOEVRQWKHPRWRUF\FOHDUH/('V,I
WKHUHLVD/('ZKLFKLVQRWWXUQHGRQVHH
\RXUGHDOHUIRUVHUYLFLQJ
7URXEOHVKRRWLQJ
+HDGOLJKWV
7KHKHDGOLJKWVXVHVHYHUDO/('V
,IWKHUHLVD/('ZKLFKLVQRWWXUQHGRQVHH
\RXUGHDOHUIRUVHUYLFLQJ
(OHFWULFDO7URXEOHu%XUQHGRXW/LJKW%XOE
%UDNHOLJKW7DLOOLJKW )URQW7XUQ6LJQDO/LJKW
%UDNHOLJKW7DLOOLJKW )URQWWXUQVLJQDOOLJKWV
7URXEOHVKRRWLQJ
7KHEUDNHOLJKWDQGWDLOOLJKWXVHVVHYHUDO 7KHIURQWWXUQVLJQDOOLJKWVXVHVVHYHUDO/('V
/('V ,IWKHUHLVD/('ZKLFKLVQRWWXUQHGRQVHH
,IWKHUHLVD/('ZKLFKLVQRWWXUQHGRQVHH \RXUGHDOHUIRUVHUYLFLQJ
\RXUGHDOHUIRUVHUYLFLQJ
&RQWLQXHG
(OHFWULFDO7URXEOHu%XUQHGRXW/LJKW%XOE
5HDU7XUQ6LJQDO/LJKW /LFHQVH3ODWH/LJKW
7URXEOHVKRRWLQJ
5HDUWXUQVLJQDOOLJKWV
/LFHQVHSODWHOLJKW
7KHUHDUWXUQVLJQDOOLJKWVXVHVVHYHUDO/('V
,IWKHUHLVD/('ZKLFKLVQRWWXUQHGRQVHH
\RXUGHDOHUIRUVHUYLFLQJ 7KHOLFHQVHSODWHOLJKWXVHVD/('
,IWKHUHLVD/('ZKLFKLVQRWWXUQHGRQVHH
\RXUGHDOHUIRUVHUYLFLQJ
(OHFWULFDO7URXEOHu%ORZQ)XVH
%ORZQ)XVH )XVHER[FRYHU
%HIRUHKDQGOLQJIXVHVVHH´,QVSHFWLQJDQG
5HSODFLQJ)XVHVµ2 3
)XVH%R[)XVHV
5HPRYHWKHIURQWVHDW2 3
7URXEOHVKRRWLQJ
5HPRYHWKHIXVHER[FRYHU
3XOOWKHIXVHVRXWRQHE\RQHZLWKWKH
6SDUHIXVHV
IXVHSXOOHULQWKHWRRONLWDQGFKHFNIRUD
EORZQIXVH$OZD\VUHSODFHDEORZQIXVH
ZLWKDVSDUHIXVHRIWKHVDPHUDWLQJ
5HLQVWDOOWKHIXVHER[FRYHU
5HLQVWDOOWKHIURQWVHDW
&RQWLQXHG
(OHFWULFDO7URXEOHu%ORZQ)XVH
u 6SDUHPDLQIXVHVDUHSURYLGHGLQWKH
IXVHER[2 3
5HLQVWDOOSDUWVLQWKHUHYHUVHRUGHURI
6SDUH),IXVH UHPRYDO
127,&(
6WDUWHUPDJQHWLF ,IDIXVHIDLOVUHSHDWHGO\\RXOLNHO\KDYHDQ
VZLWFK HOHFWULFDOSUREOHP+DYH\RXUPRWRUF\FOH
LQVSHFWHGE\\RXUGHDOHU
,QIRUPDWLRQ
.H\V 3॥ॣॣ
,QVWUXPHQWV&RQWUROV 2WKHU)HDWXUHV 3॥ॣ।
&DULQJIRU<RXU0RWRUF\FOH 3॥ॣ०
6WRULQJ<RXU0RWRUF\FOH 3॥ॣ४
7UDQVSRUWLQJ<RXU0RWRUF\FOH 3॥ॣ५
<RX WKH(QYLURQPHQW 3॥ॣ६
9HKLFOH,GHQWLILFDWLRQ1XPEHU 3॥।ॣ
(PLVVLRQ&RQWURO6\VWHPV 3॥।।
&DWDO\WLF&RQYHUWHU 3॥।२
2[\JHQDWHG)XHOV 3॥।३
$XWKRUL]HG0DQXDOV 3॥।४
:DUUDQW\&RYHUDJHDQG6HUYLFH 3॥।५
+RQGD&RQWDFWV 3॥॥ॣ
86$ 5HSRUWLQJ6DIHW\'HIHFWV 3॥॥॥
.H\V
,JQLWLRQ.H\
7KLVPRWRUF\FOHKDVWZRLJQLWLRQNH\VDQGDNH\
WDJZLWKDNH\QXPEHUDQGDEDUFRGH6WRUH
WKHVSDUHNH\DQGWKHNH\WDJLQDVDIHORFDWLRQ
7RPDNHDGXSOLFDWHNH\WDNHWKHVSDUHNH\DQG
WKHNH\WDJWR\RXUGHDOHURUDORFNVPLWK
,I\RXORVHDOONH\VDQGWKHNH\WDJWKHLJQLWLRQ
,QIRUPDWLRQ
VZLWFKDVVHPEO\ZLOOSUREDEO\KDYHWREH
UHPRYHGE\\RXUGHDOHUWRGHWHUPLQHWKHNH\
.H\QXPEHUDQGEDUFRGH
QXPEHU
$PHWDONH\KROGHUPD\FDXVHGDPDJHWRWKH
DUHDVXUURXQGLQJWKHLJQLWLRQVZLWFK
,QVWUXPHQWV&RQWUROV 2WKHU)HDWXUHV
,QVWUXPHQWV&RQWUROV 2GRPHWHU
2WKHU)HDWXUHV 7KHGLVSOD\ORFNVDWZKHQWKHUHDGRXW
H[FHHGV
,JQLWLRQ6ZLWFK
/HDYLQJWKHLJQLWLRQVZLWFKLQWKH21SRVLWLRQ 7ULSPHWHU
ZLWKWKHHQJLQHVWRSSHGZLOOGUDLQWKHEDWWHU\
7KHWULSPHWHU$DQG%UHWXUQWRZKHQHDFK
UHDGRXWH[FHHGV
'RQRWWXUQWKHNH\ZKLOHULGLQJ
,QIRUPDWLRQ
(QJLQH6WRS6ZLWFK 'RFXPHQW%DJ
&%5555$
'RQRWXVHWKHHQJLQHVWRSVZLWFKH[FHSWLQDQ
7KHRZQHU·VPDQXDOUHJLVWUDWLRQDQGLQVXUDQFH
HPHUJHQF\'RLQJVRZKHQULGLQJZLOOFDXVHWKH
LQIRUPDWLRQFDQEHVWRUHGLQWKHSODVWLF
HQJLQHWRVXGGHQO\WXUQRIIPDNLQJULGLQJ
GRFXPHQWEDJRQWKHXQGHUVLGHRIWKHUHDU
XQVDIH
VHDW2 3
,I\RXVWRSWKHHQJLQHXVLQJWKHHQJLQHVWRS
&%56
VZLWFKWXUQWKHLJQLWLRQVZLWFKWRWKH2))
7KHRZQHU·VPDQXDOUHJLVWUDWLRQDQGLQVXUDQFH
SRVLWLRQ)DLOLQJWRGRVRZLOOGUDLQWKHEDWWHU\
LQIRUPDWLRQFDQEHVWRUHGLQWKHSODVWLF
GRFXPHQWEDJRQWKHXQGHUVLGHRIWKHVLQJOH
VHDWFRZO2 3
&RQWLQXHG
,QVWUXPHQWV&RQWUROV 2WKHU)HDWXUHV
,JQLWLRQ&XWRII6\VWHP $VVLVWVOLSSHU&OXWFK6\VWHP
$EDQNLQJ OHDQDQJOH VHQVRUDXWRPDWLFDOO\ 7KHDVVLVWVOLSSHUFOXWFKV\VWHPKHOSVWRSUHYHQW
VWRSVWKHHQJLQHDQGIXHOSXPSLIWKH WKHUHDUWLUHIURPORFNLQJXSZKHQWKH
PRWRUF\FOHIDOOVRYHU7RUHVHWWKHVHQVRU\RX GHFHOHUDWLRQRI\RXUPRWRUF\FOHSURGXFHVD
PXVWWXUQWKHLJQLWLRQVZLWFKWRWKH2))SRVLWLRQ VWURQJHQJLQHEUDNLQJHIIHFW,WDOVRPDNHVWKH
DQGEDFNWRWKH21SRVLWLRQEHIRUHWKHHQJLQH FOXWFKOHYHURSHUDWLRQIHHOOLJKWHU
FDQEHUHVWDUWHG
8VHRQO\0$FODVVLILFDWLRQHQJLQHRLOIRU\RXU
PRWRUF\FOH8VLQJHQJLQHRLORWKHUWKDQ0$
,QIRUPDWLRQ
+(6' FODVVLILFDWLRQRLOFRXOGUHVXOWLQGDPDJHWRWKH
7KH+RQGD(OHFWURQLF6WHHULQJ'DPSHU +(6' DVVLVWVOLSSHUFOXWFKV\VWHP
DXWRPDWLFDOO\FRQWUROVWKHVWHHULQJGDPSHU
FKDUDFWHULVWLFVLQDFFRUGDQFHZLWKYHKLFOHVSHHG
DQGDFFHOHUDWLRQ 7KURWWOHE\:LUH6\VWHP
+(6',QGLFDWRU&RPHV2Q2 3 7KLVPRGHOLVHTXLSSHGZLWKD7KURWWOHE\:LUH
6\VWHP
'RQRWSXWPDJQHWL]HGLWHPVRULWHPV
VXVFHSWLEOHWRPDJQHWLFLQWHUIHUHQFHQHDUWKH
ULJKWKDQGOHEDUVZLWFKHV
&DULQJIRU<RXU0RWRUF\FOH
$XWRPDWLF%ULJKWQHVV&RQWURO &DULQJIRU<RXU0RWRUF\FOH
7KHEDFNOLJKWEULJKWQHVVRIWKHPHWHUZLOOEH
)UHTXHQWFOHDQLQJDQGSROLVKLQJLVLPSRUWDQWWR
FRQWUROOHGDXWRPDWLFDOO\ZKHQ´$872µLV
HQVXUHWKHOLIHRI\RXU+RQGD$FOHDQ
VHOHFWHGRQWKHEULJKWQHVVVHWWLQJ
PRWRUF\FOHPDNHVLWHDVLHUWRVSRWSRWHQWLDO
$PELHQWEULJKWQHVVLVGHWHFWHGE\WKH
SUREOHPV
SKRWRVHQVRU
,QSDUWLFXODUVHDZDWHUDQGVDOWVXVHGWRSUHYHQW
'RQRWGDPDJHRUFRYHUWKHSKRWRVHQVRU
LFHRQURDGVSURPRWHWKHIRUPDWLRQRI
2WKHUZLVHWKHDXWRPDWLFEULJKWQHVVFRQWURO
FRUURVLRQ$OZD\VZDVK\RXUPRWRUF\FOH
PD\QRWZRUNSURSHUO\
,QIRUPDWLRQ
WKRURXJKO\DIWHUULGLQJRQFRDVWDORUWUHDWHG
3KRWRVHQVRU URDGV
:DVKLQJ
$OORZWKHHQJLQHPXIIOHUEUDNHVDQGRWKHU
KLJKWHPSHUDWXUHSDUWVWRFRROEHIRUHZDVKLQJ
5LQVH\RXUPRWRUF\FOHWKRURXJKO\XVLQJD
ORZSUHVVXUHJDUGHQKRVHWRUHPRYHORRVH
GLUW
,IQHFHVVDU\XVHDVSRQJHRUDVRIWWRZHO
ZLWKPLOGFOHDQHUWRUHPRYHURDGJULPH
u &OHDQWKHZLQGVFUHHQKHDGOLJKWOHQV
SDQHOVDQGRWKHUSODVWLFFRPSRQHQWV
ZLWKH[WUDFDUHWRDYRLGVFUDWFKLQJWKHP
&RQWLQXHG
&DULQJIRU<RXU0RWRUF\FOH
$YRLGGLUHFWLQJZDWHULQWRWKHDLUFOHDQHU :DVKLQJ3UHFDXWLRQV
PXIIOHUDQGHOHFWULFDOSDUWV )ROORZWKHVHJXLGHOLQHVZKHQZDVKLQJ
7KRURXJKO\ULQVH\RXUPRWRUF\FOHZLWK ॥ 'RQRWXVHKLJKSUHVVXUHZDVKHUV
SOHQW\RIFOHDQZDWHUDQGGU\ZLWKDVRIW u +LJKSUHVVXUHZDWHUFOHDQHUVFDQ
FOHDQFORWK GDPDJHPRYLQJSDUWVDQGHOHFWULFDO
$IWHUWKHPRWRUF\FOHGULHVOXEULFDWHDQ\ SDUWVUHQGHULQJWKHPLQRSHUDEOH
PRYLQJSDUWV
u :DWHULQWKHDLULQWDNHFDQEHGUDZQLQWR
u 0DNHVXUHWKDWQROXEULFDQWVSLOOVRQWR
WKHWKURWWOHERG\DQGRUHQWHUWKHDLU
WKHEUDNHVRUWLUHV%UDNHGLVFVSDGV
FOHDQHU
GUXPRUVKRHVFRQWDPLQDWHGZLWKRLOZLOO
,QIRUPDWLRQ
॥ 'RQRWGLUHFWZDWHUDWWKHPXIIOHU
VXIIHUJUHDWO\UHGXFHGEUDNLQJ
HIIHFWLYHQHVVDQGFDQOHDGWRDFUDVK u :DWHULQWKHPXIIOHUFDQSUHYHQWVWDUWLQJ
/XEULFDWHWKHGULYHFKDLQLPPHGLDWHO\DIWHU DQGFDXVHVUXVWLQWKHPXIIOHU
ZDVKLQJDQGGU\LQJWKHPRWRUF\FOH ॥ 'U\WKHEUDNHV
$SSO\DFRDWRIZD[WRSUHYHQWFRUURVLRQ u :DWHUDGYHUVHO\DIIHFWVEUDNLQJ
u $YRLGSURGXFWVWKDWFRQWDLQKDUVK HIIHFWLYHQHVV$IWHUZDVKLQJDSSO\WKH
GHWHUJHQWVRUFKHPLFDOVROYHQWV7KHVH EUDNHVLQWHUPLWWHQWO\DWORZVSHHGWR
FDQGDPDJHWKHPHWDOSDLQWDQGSODVWLF KHOSGU\WKHP
RQ\RXUPRWRUF\FOH ॥ 'RQRWGLUHFWZDWHUXQGHUWKHVHDW
.HHSWKHZD[FOHDURIWKHWLUHVDQG u :DWHULQWKHXQGHUVHDWFRPSDUWPHQW
EUDNHV FDQGDPDJH\RXUGRFXPHQWVDQGRWKHU
u ,I\RXUPRWRUF\FOHKDVDQ\PDWWHSDLQWHG EHORQJLQJV
SDUWVGRQRWDSSO\DFRDWRIZD[WRWKH
PDWWHSDLQWHGVXUIDFH
&DULQJIRU<RXU0RWRUF\FOH
॥ &%56 ॥ 'RQRWXVHZD[RUSROLVKLQJFRPSRXQGVRQ
'RQRWGLUHFWZDWHUXQGHUWKHVLQJOHVHDW PDWWHSDLQWHGVXUIDFH
FRZO u 8VHDVRIWFORWKRUVSRQJHSOHQW\RI
u :DWHULQWKHXQGHUVLQJOHVHDWFRZO ZDWHUDQGDPLOGGHWHUJHQWWRFOHDQ
FRPSDUWPHQWFDQGDPDJH\RXU PDWWHSDLQWHGVXUIDFHV'U\ZLWKDVRIW
GRFXPHQWVDQGRWKHUEHORQJLQJV FOHDQFORWK
॥ 'RQRWGLUHFWZDWHUDWWKHDLUFOHDQHU
u :DWHULQWKHDLUFOHDQHUFDQSUHYHQWWKH
HQJLQHIURPVWDUWLQJ
,QIRUPDWLRQ
॥ 'RQRWGLUHFWZDWHUQHDUWKHKHDGOLJKW
u 7KHKHDGOLJKW VLQVLGHOHQVPD\IRJ
WHPSRUDULO\DIWHUZDVKLQJRUZKLOHULGLQJ
LQWKHUDLQ7KLVGRHVQRWLPSDFWWKH
KHDGOLJKWIXQFWLRQ
+RZHYHULI\RXVHHDODUJHDPRXQWRI
ZDWHURULFHDFFXPXODWHGLQVLGHWKH
OHQV HV KDYH\RXUYHKLFOHLQVSHFWHGE\
\RXUGHDOHU
&RQWLQXHG
&DULQJIRU<RXU0RWRUF\FOH
$OXPLQXP&RPSRQHQWV :LQGVFUHHQ
$OXPLQXPZLOOFRUURGHIURPFRQWDFWZLWKGLUW 8VLQJSOHQW\RIZDWHUFOHDQWKHZLQGVFUHHQZLWK
PXGRUURDGVDOW&OHDQDOXPLQXPSDUWV DVRIWFORWKRUVSRQJH $YRLGXVLQJGHWHUJHQWV
UHJXODUO\DQGIROORZWKHVHJXLGHOLQHVWRDYRLG RUDQ\NLQGRIFKHPLFDOFOHDQHURQWKH
VFUDWFKHV ZLQGVFUHHQ 'U\ZLWKDVRIWFOHDQFORWK
॥ 'RQRWXVHVWLIIEUXVKHVVWHHOZRRORU
127,&(
FOHDQHUVFRQWDLQLQJDEUDVLYHV 7RDYRLGSRVVLEOHVFUDWFKLQJRURWKHUGDPDJHXVH
॥ $YRLGULGLQJRYHURUVFUDSLQJDJDLQVWFXUEV RQO\ZDWHUDQGDVRIWFORWKRUVSRQJHWRFOHDQWKH
,QIRUPDWLRQ
ZLQGVFUHHQ
3DQHOV )RUDGLUWLHUZLQGVFUHHQXVHDGLOXWHGQHXWUDO
)ROORZWKHVHJXLGHOLQHVWRSUHYHQWVFUDWFKHV GHWHUJHQWZLWKDVSRQJHDQGSOHQW\RIZDWHU
DQGEOHPLVKHV 0DNHVXUHWRZDVKRIIDOOWKHGHWHUJHQW
॥ :DVKJHQWO\XVLQJDVRIWVSRQJHDQGSOHQW\ 'HWHUJHQWUHVLGXHPD\FDXVHZLQGVFUHHQ
RIZDWHU FUDFNV
॥ 7RUHPRYHVWXEERUQVWDLQVXVHGLOXWHG
GHWHUJHQWDQGULQVHWKRURXJKO\ZLWKSOHQW\ 5HSODFHWKHZLQGVFUHHQLIVFUDWFKHVFDQQRWEH
UHPRYHGDQGWKH\REVWUXFWFOHDUYLVLRQ
RIZDWHU
॥ $YRLGJHWWLQJJDVROLQHEUDNHIOXLGRU
7DNHFDUHWRNHHSEDWWHU\HOHFWURO\WHEUDNH
GHWHUJHQWVRQWKHLQVWUXPHQWVSDQHOVRU IOXLGRURWKHUFKHPLFDOVROYHQWVRIIWKH
KHDGOLJKW ZLQGVFUHHQDQGVFUHHQJDUQLVK7KH\ZLOO
GDPDJHWKHSODVWLF
6WRULQJ<RXU0RWRUF\FOH
([KDXVW3LSHDQG0XIIOHU 6WRULQJ<RXU0RWRUF\FOH
7KHH[KDXVWSLSHDQGPXIIOHUDUHWLWDQLXPDQG
,I\RXVWRUH\RXUPRWRUF\FOHRXWGRRUV\RX
VWDLQOHVVVWHHOEXWPD\EHFRPHVWDLQHGE\PXG
VKRXOGFRQVLGHUXVLQJDIXOOERG\PRWRUF\FOH
RUGXVW
FRYHU
,I\RXZRQ WEHULGLQJIRUDQH[WHQGHGSHULRG
7RUHPRYHPXGRUGXVWXVHDZHWVSRQJHDQG
IROORZWKHVHJXLGHOLQHV
DOLTXLGNLWFKHQDEUDVLYHWKHQULQVHZHOOZLWK
॥ :DVK\RXUPRWRUF\FOHDQGZD[DOOSDLQWHG
FOHDQZDWHU'U\ZLWKFKDPRLVRUDVRIWWRZHO
VXUIDFHV H[FHSWPDWWHSDLQWHGVXUIDFHV
,QIRUPDWLRQ
&RDWFKURPHSLHFHVZLWKUXVWLQKLELWLQJRLO
,IQHFHVVDU\UHPRYHKHDWVWDLQVE\XVLQJD
॥ /XEULFDWHWKHGULYHFKDLQ2 3
FRPPHUFLDOO\DYDLODEOHILQHWH[WXUHFRPSRXQG
॥ 3ODFH\RXUPRWRUF\FOHRQDPDLQWHQDQFH
7KHQULQVHE\WKHVDPHPDQQHUDVUHPRYLQJ
VWDQGDQGSRVLWLRQDEORFNVRWKDWERWKWLUHV
PXGRUGXVW
DUHRIIWKHJURXQG
127,&( ॥ $IWHUUDLQUHPRYHWKHERG\FRYHUDQGDOORZ
(YHQWKRXJKWKHH[KDXVWLVPDGHRIWLWDQLXPDQG WKHPRWRUF\FOHWRGU\
VWDLQOHVVVWHHOLWFDQEHFRPHVWDLQHG5HPRYHDOO
PDUNVDQGEOHPLVKHVDVVRRQDVWKH\DUHQRWLFHG
&RQWLQXHG
7UDQVSRUWLQJ<RXU0RWRUF\FOH
86$ )RUPRUHLQIRUPDWLRQDERXWVWRUDJHUHIHU
127,&(
WRWKH+RQGD:LQWHU6WRUDJH*XLGHDYDLODEOH
7RZLQJ\RXUPRWRUF\FOHFDQFDXVHVHULRXV
IURP\RXUGHDOHU GDPDJHWRWKHWUDQVPLVVLRQ
&DQDGD )RUPRUHLQIRUPDWLRQDERXWVWRUDJH
YLVLWRXUZHEVLWHDWZZZKRQGDFDDQGORRNXS
´6WRUDJH7LSVµXQGHUWKH´+RQGD:DUUDQW\µLQ
WKH:DUUDQW\WDEIRU\RXU0RGHO
<RX WKH(QYLURQPHQW
&KRRVH6HQVLEOH&OHDQHUV
8VHDELRGHJUDGDEOHGHWHUJHQWZKHQ\RXZDVK
\RXUPRWRUF\FOH$YRLGDHURVROVSUD\FOHDQHUV
,QIRUPDWLRQ
WKDWFRQWDLQFKORURIOXRURFDUERQV &)&V ZKLFK
GDPDJHWKHDWPRVSKHUH VSURWHFWLYHR]RQH
OD\HU
5HF\FOH:DVWHV
3XWRLODQGRWKHUWR[LFZDVWHVLQDSSURYHG
FRQWDLQHUVDQGWDNHWKHPWRDUHF\FOLQJFHQWHU
&DOO\RXUORFDORUVWDWHRIILFHRISXEOLFZRUNVRU
HQYLURQPHQWDOVHUYLFHVWRILQGDUHF\FOLQJFHQWHU
LQ\RXUDUHDDQGWRJHWLQVWUXFWLRQVRQKRZWR
GLVSRVHRIQRQUHF\FODEOHZDVWHV'RQRWSODFH
XVHGHQJLQHRLOLQWKHWUDVKRUSRXULWGRZQD
GUDLQRURQWKHJURXQG8VHGRLOJDVROLQH
9HKLFOH,GHQWLILFDWLRQ1XPEHU
9HKLFOH,GHQWLILFDWLRQ
1XPEHU 9,1
7KH9,1DQGHQJLQHVHULDOQXPEHUXQLTXHO\
LGHQWLI\\RXUPRWRUF\FOHDQGDUHUHTXLUHGLQ
RUGHUWRUHJLVWHU\RXUPRWRUF\FOH7KH\PD\
DOVREHUHTXLUHGZKHQRUGHULQJUHSODFHPHQW
SDUWV
<RXVKRXOGUHFRUGWKHVHQXPEHUVDQGNHHS
,QIRUPDWLRQ
WKHPLQDVDIHSODFH
(QJLQHQXPEHU
9,1
(PLVVLRQ&RQWURO6\VWHPV
(PLVVLRQ&RQWURO6\VWHPV RSHUDWHGDQGPDLQWDLQHGDFFRUGLQJWRWKH
LQVWUXFWLRQVSURYLGHG
<RXUPRWRUF\FOHHQJLQHHPLWVFRPEXVWLRQ 86$ &RPSOLDQFHZLWKWKHWHUPVRIWKH
E\SURGXFWVLQFOXGLQJFDUERQPRQR[LGH &2 'LVWULEXWRU V:DUUDQWLHVIRU+RQGD0RWRUF\FOH
R[LGHVRIQLWURJHQ 12[ DQGK\GURFDUERQV (PLVVLRQ&RQWURO6\VWHPVLVQHFHVVDU\LQRUGHU
+& *DVROLQHHYDSRUDWLRQDOVRHPLWV WRPDLQWDLQDYDOLGHPLVVLRQVV\VWHPZDUUDQW\
K\GURFDUERQV&RQWUROOLQJWKHSURGXFWLRQRI
12[&2DQG+&LVLPSRUWDQWIRUWKH 7KH9HKLFOH(PLVVLRQ&RQWURO,QIRUPDWLRQODEHO
HQYLURQPHQW LVORFDWHGRQWKHOHIWVLGHRIWKHVZLQJDUP
,QIRUPDWLRQ
([KDXVW(PLVVLRQ5HTXLUHPHQWV &DQDGD 9HKLFOHHPLVVLRQFRQWURO
LQIRUPDWLRQODEHO
7KH86(QYLURQPHQWDO3URWHFWLRQ$JHQF\
(3$ WKH&DOLIRUQLD$LU5HVRXUFHV%RDUG
&$5% DQG(QYLURQPHQWDQG&OLPDWH&KDQJH
&DQDGD (&&& UHTXLUHWKDW\RXUPRWRUF\FOH
FRPSO\ZLWKDSSOLFDEOHH[KDXVWFUDQNFDVHDQG
IXHOSHUPHDWLRQHPLVVLRQVWDQGDUGVGXULQJLWV
XVHIXOOLIHZKHQRSHUDWHGDQGPDLQWDLQHG
DFFRUGLQJWRWKHLQVWUXFWLRQVSURYLGHG 9HKLFOHHPLVVLRQFRQWURO
&$5%DOVRUHTXLUHVWKDW\RXUPRWRUF\FOH LQIRUPDWLRQODEHO
FRPSO\ZLWKDSSOLFDEOHHYDSRUDWLYHHPLVVLRQ
UHTXLUHPHQWVGXULQJLWVXVHIXOOLIHZKHQ
&RQWLQXHG
(PLVVLRQ&RQWURO6\VWHPV
1RLVH(PLVVLRQ5HTXLUHPHQWV ,JQLWLRQ7LPLQJ&RQWURO6\VWHP
7KH(3$UHTXLUHVWKDWPRWRUF\FOHVEXLOWDIWHU 7KHLJQLWLRQWLPLQJFRQWUROV\VWHPDGMXVWVWKH
-DQXDU\FRPSO\ZLWKDSSOLFDEOHQRLVH LJQLWLRQWLPLQJWRUHGXFHWKHDPRXQWRI+&
HPLVVLRQVWDQGDUGVIRURQH\HDURUPLOHV &2DQG12[SURGXFHG
NP DIWHUWKHWLPHRISXUFKDVHZKHQ 6HFRQGDU\$LU,QMHFWLRQ6\VWHP
RSHUDWHGDQGPDLQWDLQHGDFFRUGLQJWRWKH 7KHVHFRQGDU\DLULQMHFWLRQV\VWHPDGGVILOWHUHG
LQVWUXFWLRQVSURYLGHG DLULQWRWKHH[KDXVWJDVWRKHOSLPSURYH
HPLVVLRQFRQWUROSHUIRUPDQFH
([KDXVW(PLVVLRQ&RQWURO6\VWHP
,QIRUPDWLRQ
7KHH[KDXVWHPLVVLRQFRQWUROV\VWHPLQFOXGHV &DWDO\WLF&RQYHUWHUV
WKHIROORZLQJFRPSRQHQWVWKDWVKRXOGQRWQHHG 7KHH[KDXVWV\VWHPFRQWDLQVRQHRUPRUH
DGMXVWPHQWDOWKRXJKSHULRGLFLQVSHFWLRQE\ FDWDO\WLFFRQYHUWHUV&DWDO\WLFFRQYHUWHUVXVHD
\RXUGHDOHULVUHFRPPHQGHG FDWDO\VWWRFRQYHUWPRVWRIWKHKDUPIXOH[KDXVW
JDVFRPSRXQGVLQWRKDUPOHVVFRPSRXQGV
3*0),6\VWHP
7KH3*0), SURJUDPPHGIXHOLQMHFWLRQ V\VWHP (YDSRUDWLYH(PLVVLRQ&RQWURO6\VWHP
XVHVVHTXHQWLDOPXOWLSRUWIXHOLQMHFWLRQDQGLV 67$7( PHHWV&DOLIRUQLD
FRPSULVHGRIDLULQWDNHHQJLQHFRQWUROIXHO $QHYDSRUDWLYHHPLVVLRQVFRQWUROV\VWHPXVHVD
FRQWURODQGH[KDXVWFRQWUROVXEV\VWHPV7KH FDQLVWHUILOOHGZLWKFKDUFRDOWRDGVRUEIXHOYDSRU
HQJLQHFRQWUROPRGXOH (&0 XVHVVHQVRUVWR IURPWKHIXHOWDQNZKLOHWKHHQJLQHLVRII7KH
GHWHUPLQHKRZPXFKDLUHQWHUVWKHHQJLQHDQG YDSRULVGUDZQLQWRWKHHQJLQHDQGEXUQHG
WKHQFRQWUROVKRZPXFKIXHOWRLQMHFW ZKLOHULGLQJ
(PLVVLRQ&RQWURO6\VWHPV
&UDQNFDVH(PLVVLRQV&RQWURO6\VWHP 1RLVH(PLVVLRQ&RQWURO6\VWHP
7KHHQJLQHLVHTXLSSHGZLWKDFORVHGFUDQNFDVH
V\VWHPWRSUHYHQWGLVFKDUJLQJFUDQNFDVH 7$03(5,1*:,7+7+(12,6(&21752/
6<67(0,6352+,%,7('
HPLVVLRQVLQWRWKHDWPRVSKHUH
86IHGHUDOODZSURKLELWVDQG&DQDGLDQ
%ORZE\JDVLVUHWXUQHGWRWKHFRPEXVWLRQ
SURYLQFLDOODZVPD\SURKLELWWKHIROORZLQJDFWV
FKDPEHUWKURXJKWKHDLUFOHDQHUDQGWKHLQWDNH
RUWKHFDXVLQJWKHUHRI 7KHUHPRYDORU
PDQLIROG
UHQGHULQJLQRSHUDWLYHE\DQ\SHUVRQRWKHUWKDQ
)XHO3HUPHDWLRQ(PLVVLRQ&RQWURO IRUSXUSRVHVRIPDLQWHQDQFHUHSDLURU
,QIRUPDWLRQ
7KHIXHOWDQNIXHOKRVHVDQGIXHOYDSRUFKDUJH UHSODFHPHQWRIDQ\GHYLFHRUHOHPHQWRI
KRVHVXVHIXHOSHUPHDWLRQFRQWUROWHFKQRORJLHV GHVLJQLQFRUSRUDWHGLQWRDQ\QHZYHKLFOHIRU
WRSUHYHQWIXHOYDSRUHPLVVLRQV7DPSHULQJZLWK WKHSXUSRVHRIQRLVHFRQWUROSULRUWRLWVVDOHRU
WKHVHFRPSRQHQWVWRUHGXFHRUGHIHDWWKH GHOLYHU\WRWKHXOWLPDWHSXUFKDVHURUZKLOHLWLV
HIIHFWLYHQHVVRIWKHIXHOSHUPHDWLRQ LQXVHRU WKHXVHRIWKHYHKLFOHDIWHUVXFK
WHFKQRORJLHVLVSURKLELWHG GHYLFHRUHOHPHQWRIGHVLJQKDVEHHQUHPRYHG
RUUHQGHUHGLQRSHUDWLYHE\DQ\SHUVRQ
&RQWLQXHG
(PLVVLRQ&RQWURO6\VWHPV
$021*7+26($&7635(680('72 3UREOHPV$IIHFWLQJ0RWRUF\FOH([KDXVW
&2167,787(7$03(5,1*$5(7+( (PLVVLRQV
)2//2:,1*$&76 +DYH\RXUPRWRUF\FOHLQVSHFWHGDQGUHSDLUHG
॥ 5HPRYDORIRUSXQFWXULQJWKHPXIIOHU E\\RXUGHDOHULI\RXH[SHULHQFHDQ\RIWKH
EDIIOHVKHDGHUSLSHVRUDQ\RWKHU IROORZLQJV\PSWRPV
FRPSRQHQWZKLFKFRQGXFWVH[KDXVWJDVHV ॥ +DUGVWDUWLQJRUVWDOOLQJDIWHUVWDUWLQJ
॥ 5HPRYDORIRUSXQFWXULQJRIDQ\SDUWRIWKH ॥ 5RXJKLGOLQJ
LQWDNHV\VWHP ॥ 0LVILULQJRUEDFNILULQJGXULQJDFFHOHUDWLRQ
॥ /DFNRISURSHUPDLQWHQDQFH ॥ 3RRUHQJLQHSHUIRUPDQFHDQGSRRUIXHO
,QIRUPDWLRQ
॥ 5HPRYLQJRUGLVDEOLQJDQ\HPLVVLRQV HFRQRP\
FRPSOLDQFHFRPSRQHQWRUUHSODFLQJDQ\
FRPSOLDQFHFRPSRQHQWZLWKDQRQFRPSOLDQW
FRPSRQHQW
&DWDO\WLF&RQYHUWHU
&DWDO\WLF&RQYHUWHU )ROORZWKHVHJXLGHOLQHVWRSURWHFW\RXU
PRWRUF\FOH VFDWDO\WLFFRQYHUWHU
7KLVPRWRUF\FOHLVHTXLSSHGZLWKDWKUHHZD\ ॥ $OZD\VXVHXQOHDGHGJDVROLQH/HDGHG
FDWDO\WLFFRQYHUWHU7KHFDWDO\WLFFRQYHUWHU JDVROLQHZLOOGDPDJHWKHFDWDO\WLFFRQYHUWHU
FRQWDLQVSUHFLRXVPHWDOVWKDWVHUYHDVFDWDO\VWV ॥ .HHSWKHHQJLQHLQJRRGUXQQLQJFRQGLWLRQ
LQKLJKWHPSHUDWXUHFKHPLFDOUHDFWLRQVWKDW $SRRUO\UXQQLQJHQJLQHFDQFDXVHWKH
FRQYHUWK\GURFDUERQV +& FDUERQPRQR[LGH FDWDO\WLFFRQYHUWHUWRRYHUKHDWFDXVLQJ
&2 DQGR[LGHVRIQLWURJHQ 12[ LQWKH GDPDJHWRWKHFRQYHUWHURUWKHPRWRUF\FOH
H[KDXVWJDVVHVLQWRVDIHFRPSRXQGV ॥ ,I\RXUHQJLQHLVPLVILULQJEDFNILULQJVWDOOLQJ
,QIRUPDWLRQ
RURWKHUZLVHQRWUXQQLQJSURSHUO\VWRS
$GHIHFWLYHFDWDO\WLFFRQYHUWHUFRQWULEXWHVWRDLU ULGLQJDQGWXUQRIIWKHHQJLQH+DYH\RXU
SROOXWLRQDQGFDQLPSDLU\RXUHQJLQH V PRWRUF\FOHVHUYLFHGDVVRRQDVSRVVLEOH
SHUIRUPDQFH$UHSODFHPHQWXQLWPXVWEHDQ
RULJLQDO+RQGDSDUWRUHTXLYDOHQW
2[\JHQDWHG)XHOV
2[\JHQDWHG)XHOV \RXPD\H[SHULHQFHSHUIRUPDQFHSUREOHPV7R
UHVROYHWKHSUREOHPKDYH\RXUGHDOHUGUDLQWKH
6RPHFRQYHQWLRQDOIXHOVEOHQGHGZLWKDOFRKRO IXHOWDQNDQGUHSODFHZLWKWKHFRUUHFWIXHO)XHO
RUDQHWKHUFRPSRXQGDUHDYDLODEOHLQVRPH V\VWHPRUSHUIRUPDQFHSUREOHPVUHVXOWLQJIURP
ORFDOHVWRKHOSUHGXFHHPLVVLRQVWRPHHWFOHDQ WKHXVHRIDQR[\JHQDWHGIXHOFRQWDLQLQJKLJKHU
DLUVWDQGDUGV7KHVHJDVROLQHVDUHFROOHFWLYHO\ SHUFHQWDJHVDUHQRWFRYHUHGE\\RXUZDUUDQW\
UHIHUUHGWRDVR[\JHQDWHGIXHOV,I\RXSODQWR
127,&(
XVHR[\JHQDWHGIXHOFKHFNWKDWLWLVXQOHDGHG
,PSURSHUXVHRIR[\JHQDWHGIXHOVFDQGDPDJH
DQGPHHWVWKHPLQLPXPRFWDQHUDWLQJDQG PHWDOUXEEHUDQGSODVWLFSDUWVRI\RXUIXHO
,QIRUPDWLRQ
EOHQGUHTXLUHPHQW V\VWHP
7KHIROORZLQJIXHOEOHQGVDUH(3$DSSURYHG 2[\JHQDWHGIXHOFDQDOVRGDPDJHSDLQW
DQGKDYHEHHQDSSURYHGIRUXVHLQ\RXU 'DPDJHFDXVHGE\VSLOOHGIXHOLVQRWFRYHUHGE\
PRWRUF\FOH ZDUUDQW\
॥ (WKDQRO HWK\ODOFRKRO XSWRE\YROXPH
u *DVROLQHFRQWDLQLQJHWKDQROPD\EH ,I\RXQRWLFHDQ\XQGHVLUDEOHRSHUDWLQJ
PDUNHWHGXQGHUWKHQDPH*DVRKRO V\PSWRPVRUSHUIRUPDQFHSUREOHPVWU\D
॥ 0HWKDQRO PHWK\ODOFRKRO XSWRE\ GLIIHUHQWEUDQGRIJDVROLQH
YROXPHWKDWFRQWDLQFRVROYHQWVDQG
FRUURVLRQLQKLELWRUVWRSURWHFWWKHIXHO
V\VWHP1HYHUXVHDEOHQGFRQWDLQLQJPRUH
WKDQ
,I\RXDFFLGHQWDOO\ILOO\RXUIXHOWDQNZLWKDQ
R[\JHQDWHGIXHOFRQWDLQLQJKLJKHUSHUFHQWDJHV
$XWKRUL]HG0DQXDOV
$XWKRUL]HG0DQXDOV FDQKHOS\RXSUHSDUH\RXU+RQGDPRWRUF\FOH
VFRRWHU$79DQG6[6IRUZLQWHUVWRUDJH
86$ 7KH6HUYLFH0DQXDOXVHGE\\RXU 7KHVH+RQGDPDQXDOVDUHZULWWHQIRUWKH
DXWKRUL]HGGHDOHULVDYDLODEOHIURP\RXU+RQGD SURIHVVLRQDOWHFKQLFLDQ+RZHYHULI\RXSRVVHVV
GHDOHURU+HOP,QF WKHSURSHUWRROVREVHUYHWKHVDIHW\VWDQGDUGV
&DQDGD 6HH\RXUGHDOHUWRRUGHUDXWKRUL]HG DQGDUHPHFKDQLFDOO\FDSDEOH\RXVKRXOGILQG
PDQXDOV WKHPHDV\WRXVH
6SHFLDO+RQGDWRROVDUHQHFHVVDU\IRUVRPH
$OVRDYDLODEOHEXWQRWQHFHVVDU\WRVHUYLFH\RXU SURFHGXUHV
,QIRUPDWLRQ
PRGHOLVWKH+RQGD&RPPRQ6HUYLFH0DQXDO 86$
ZKLFKH[SODLQVEDVLFVHUYLFHLQIRUPDWLRQIRU 2UGHU2Q/LQHZZZKHOPLQFFRP
YDULRXVV\VWHPVRQ+RQGDPRWRUF\FOHV
VFRRWHUVDQG$79 2UGHU7ROO)UHH&<&/(
86$ 7KH:LQWHU6WRUDJH*XLGHLQFRQMXQFWLRQ 127()RU&UHGLW&DUG2UGHUV2QO\
ZLWKWKH2ZQHU V0DQXDODQG6HUYLFH0DQXDO 0RQGD\)ULGD\$030(67
3XEOLFDWLRQ,WHP1R 'HVFULSWLRQ
0.) &%5555$666HUYLFH0DQXDO
&60 &RPPRQ6HUYLFH0DQXDO
6 86$ :LQWHU6WRUDJH*XLGH
0.) &%5555$62ZQHU·V0DQXDO
:DUUDQW\&RYHUDJHDQG6HUYLFH
:DUUDQW\&RYHUDJHDQG FRYHUDJHGRHVQRWDSSO\WRWKHQRUPDOZHDU
DQGGHWHULRUDWLRQDVVRFLDWHGZLWKXVHRIWKH
6HUYLFH PRWRUF\FOH
<RXUZDUUDQW\FRYHUDJHLVQRWYRLGHGLI\RX
&RYHUDJH
SHUIRUP\RXURZQPDLQWHQDQFH+RZHYHU
<RXUQHZ+RQGDLVFRYHUHGE\WKHIROORZLQJ IDLOXUHVWKDWRFFXUGXHGLUHFWO\WRLPSURSHU
ZDUUDQWLHV PDLQWHQDQFHDUHQRWFRYHUHGE\WKHVH
॥ 0RWRUF\FOH/LPLWHG:DUUDQW\ ZDUUDQWLHV
॥ (PLVVLRQ&RQWURO6\VWHP:DUUDQW\
,QIRUPDWLRQ
,WLVLPSRUWDQWWRUHDOL]HWKDW\RXUZDUUDQW\
DSSOLHVRQO\WRGHIHFWVLQPDWHULDORU
ZRUNPDQVKLSRI\RXU+RQGD<RXUZDUUDQW\
:DUUDQW\&RYHUDJHDQG6HUYLFH
6HUYLFH QRWVDWLVILHGFRQWDFWWKHRZQHURIWKH
GHDOHUVKLSRUWKHLUGHVLJQDWHGUHSUHVHQWDWLYH
3OHDVHUHPHPEHUWKDWPDLQWHQDQFH
UHFRPPHQGHGLQWKH0DLQWHQDQFH6FKHGXOHLV
QRWLQFOXGHGLQ\RXUZDUUDQW\FRYHUDJH
,I\RXEHOLHYH\RXKDYHDSUREOHPZLWK\RXU
PRWRUF\FOHFDOOWKHVHUYLFHGHSDUWPHQWRI\RXU
+RQGDGHDOHU0DNHDQDSSRLQWPHQWIRUDQ
LQVSHFWLRQDQGGLDJQRVLV<RXZLOOEHDVNHGWR
,QIRUPDWLRQ
DXWKRUL]HWKDWLQVSHFWLRQDQG\RXUGHDOHUZLOO
UHWXUQWKHUHVXOWVRIWKHLQVSHFWLRQ,IDSUREOHP
H[LVWVDQGLVFRYHUHGXQGHUZDUUDQW\\RXU
GHDOHUZLOOSHUIRUPWKHZDUUDQW\UHSDLUV,I\RX
KDYHDQ\TXHVWLRQVDERXW\RXUZDUUDQW\
FRYHUDJHRUWKHQDWXUHRIWKHUHSDLUWDONWRWKH
6HUYLFH0DQDJHURI\RXU+RQGDGHDOHU
,IDPLVXQGHUVWDQGLQJRFFXUVDQG\RXDUHQ W
VDWLVILHGZLWK\RXUGHDOHU VKDQGOLQJRIWKH
VLWXDWLRQZHVXJJHVW\RXGLVFXVV\RXUSUREOHP
ZLWKWKHDSSURSULDWHPHPEHURIWKH
GHDOHUVKLS VPDQDJHPHQWWHDP,I\RXDUHVWLOO
+RQGD&RQWDFWV
:HZLOOOLNHO\DVN\RXU+RQGDGHDOHUWRUHVSRQG
32%R[7RUUDQFH
RUSRVVLEO\DFNQRZOHGJH\RXUFRPPHQWV
&$
GLUHFWO\
0DLOVWRS&%
7HOHSKRQH
&DQDGD
+RQGD&DQDGD,QF
&XVWRPHU5HODWLRQV'HSDUWPHQW
+RQGD%RXOHYDUG
0DUNKDP2QWDULR
/&+
7HOHSKRQH
+RQGD&RQWDFWV
,QIRUPDWLRQ
DQGSURGXFWV &DQDGDRQO\ WKDWSURYLGHWKH
VDPHTXDOLW\WKDWZHQWLQWR\RXUPRWRUF\FOH
86$ 7KHVDOHVGHSDUWPHQWRIIHUVWKH+RQGD
3URWHFWLRQ3ODQWRH[WHQGDOPRVWDOORI\RXU
ZDUUDQW\FRYHUDJH
<RXU+RQGDGHDOHUFDQDOVRVXSSO\LQIRUPDWLRQ
DERXWULGLQJHYHQWVDQGLQIRUPDWLRQDERXW
VDIHW\WUDLQLQJDYDLODEOHLQ\RXUORFDODUHDDQG
WKH+RQGD5LGHU V&OXERI$PHULFD 86$RQO\
5HSRUWLQJ6DIHW\'HIHFWV
6SHFLILFDWLRQV
&XUEZHLJKW 67$7( PHHWV OE NJ WK
&DOLIRUQLD WK
&%55$ OE NJ 5HGXFWLRQUDWLR
&%56 OE NJ SULPDU\ILQDO
0D[LPXPZHLJKW &%5555$ OE NJ ,QFOXGLQJULGHUSDVVHQJHUDOOOXJJDJHVDQGDFFHVVRULHV
FDSDFLW\ &%56 OE NJ ,QFOXGLQJULGHUDOOOXJJDJHVDQGDFFHVVRULHV
5LGHUDQG
&%5555$
SDVVHQJHU
3DVVHQJHUFDSDFLW\
5LGHURQO\ QR
&%56
SDVVHQJHU
0LQLPXPWXUQLQJUDGLXV IW P
'LVSODFHPHQW FXLQ FP
%RUH[VWURNH [LQ [PP
&RPSUHVVLRQUDWLR
6SHFLILFDWLRQV
ଶ 6HUYLFH'DWD $3,6HUYLFH&ODVVLILFDWLRQ6*RUKLJKHU
)URQW =50& : H[FHSWRLOVODEHOHGDVHQHUJ\FRQVHUYLQJRU
7LUHVL]H UHVRXUFHFRQVHUYLQJRQWKHFLUFXODU$3,
5HDU =50& : 5HFRPPHQGHG
7LUHW\SH 5DGLDOWXEHOHVV VHUYLFHODEHO6$(:-$627
HQJLQHRLO
VWDQGDUG0$3UR+RQGD*1VWURNHRLO
%5,'*(6721(6)(
&%5555$ 86$ &DQDGD RU+RQGDVWURNHRLORUDQ
'81/23')< HTXLYDOHQWPRWRUF\FOHRLO
)URQW %5,'*(6721(56)1 $IWHU
&%56 3,5(//,',$%/2 86TW /
GUDLQLQJ
5HFRPPHQGHG 683(5&256$63 $IWHU
7LUHV %5,'*(6721(65( GUDLQLQJ
&%5555$ (QJLQHRLO
'81/23'< HQJLQHRLO 86TW /
FDSDFLW\
5HDU %5,'*(6721(5651 ILOWHU
6SHFLILFDWLRQV
6SHFLILFDWLRQV
ଶ )XVHV
0DLQIXVH $
&%555 $$$
2WKHUIXVH
&%55$6 $$$$
ଶ 7RUTXH6SHFLILFDWLRQV
6SHFLILFDWLRQV
(QJLQHRLOGUDLQ
OEIÃIW 1ÃPNJIÃP
EROW
2LOILOWHU OEIÃIW 1ÃPNJIÃP
)URQWZKHHOD[OH
OEIÃIW 1ÃPNJIÃP
EROW
)URQWZKHHOEUDNH &%5555$ OEIÃIW 1ÃPNJIÃP
FDOLSHUPRXQWLQJ
&%56 OEIÃIW 1ÃPNJIÃP
EROW
)URQWZKHHOD[OH
OEIÃIW 1ÃPNJIÃP
SLQFKEROW
5HDUZKHHOD[OH OEIÃIW 1ÃP
QXW NJIÃP
,QIRUPDWLRQ5HFRUG
9,1
(QJLQH1R
&RORU/DEHO &RGH
2ZQHU V1DPH
$GGUHVV
&LW\6WDWH
3KRQH
'HDOHU V1DPH
$GGUHVV
&LW\6WDWH
3KRQH
6HUYLFH0DQDJHU
,QGH[
$ &
$%6 $QWLORFN%UDNH6\VWHP ।० &DULQJIRU<RXU0RWRUF\FOH ॥ॣ०
$%6 $QWLORFN%UDNH6\VWHP &DWDO\WLF&RQYHUWHU ॥।२
,QGLFDWRU ६१।५॥ &%5/RJR १ॣ
$FFHVVRULHV ।३ &LUFXLW0RGH ॥१
&OHDU'DWD २४
% &ORFN ॥॥
%DFNJURXQG ३० &OXWFK6\VWHP ।२४
%DWWHU\ ।॥०।०४ &RRODQW ।०॥।१४
%DWWHU\9ROWDJH १ॣ &RRODQW7HPSHUDWXUH*DXJH ॥३
%ODQN'LVSOD\ १।
%UDNH/LJKW6ZLWFK ।२। '
%UDNHV 'DPSLQJ$GMXVWPHQW ।४१
,QGH[
)OXLG ।०ॣ।१६ 'DWH १।
/HYHU$GMXVWPHQW ।३० 'DWH 7LPH ४ॣ
3DG:HDU ।२ॣ 'LVSOD\
%UDNLQJ ।॥ %DFNJURXQG ३०
%ULJKWQHVV ३॥॥ॣ० %ULJKWQHVV ३॥
%XOE 'LVSOD\0RGH २६
%UDNHOLJKW7DLOOLJKW ।६२ )DYRULWH ३२
)URQW7XUQ6LJQDO ।६२ 6KLIW,QGLFDWRU ३।
+HDGOLJKWV ।६१ 8VHU/HWWHU ३१
/LFHQVH3ODWH/LJKW ।६३ 'ULYH&KDLQ ।२०
5HDU7XUQ6LJQDO ।६३ '7& ५१
( 5HFRPPHQGHG ।।।
(%9DOXH ।ॣ० 7DQN&DSDFLW\ ।।।
(OHFWULFDO7URXEOH ।६० )XHO0LOHDJH0HWHU ४२
(QJLQH )XQFWLRQ
1XPEHU ॥।ॣ 4XLFN6KLIWHU १३
2LO ।॥६।१० 6XVSHQVLRQ$$DQG$ २।
2LO)LOWHU ।१२ 6XVSHQVLRQ00DQG0 .. २॥
2YHUKHDWV ।५ॣ )XVHV ।॥६।६४
6WDUWLQJ ।ॣ५
6WRS6ZLWFK ६६।ॣ५॥ॣ। *
6WRSSLQJ ॥ॣ। *DVRKRO ॥।३
:LOO1RW6WDUW ।४६ *DVROLQH ।।।
(QYLURQPHQW ॥ॣ६ *HDU3RVLWLRQ,QGLFDWRU ॥०
,QGH[
(TXLSPHQW *HQHUDO
2ZQHU·V0DQXDO ।।॥॥ॣ। 'DWH 7LPH ४ॣ
7RRO.LW ।।॥ 5HVWRUH'HIDXOW ४३
8QLWV ४।
)
)DLOXUH ६॥ +
)DYRULWH ३२ +D]DUG6ZLWFK ६५
)ORRGHG(QJLQH ।ॣ५ +HDGOLJKW$LP ।३॥
)URQW6HDW ।०६ +HDGOLJKW'LPPHU6ZLWFK ६५
)URQW6XVSHQVLRQ ।३१ +HOPHW+ROGHU ।।॥
)XHO +HOSIX ६।
+(6' +RQGD(OHFWURQLF6WHHULQJ /DS'DWD २३
'DPSHU ६२।५॥ /DS7LPH
+LJK%HDP,QGLFDWRU ६१ &OHDU'DWH २४
+LJK&RRODQW7HPSHUDWXUH /DS'DWH २३
,QGLFDWRU ६१।५ॣ /DS7LPHU ॥१५३
+RQGD&RQWDFWV ॥॥ॣ /HIW7XUQ6LJQDO,QGLFDWRU ६०
+RUQ%XWWRQ ६५ /LWKLXP,RQ%DWWHU\ ।॥२
/RDG/LPLWV ।४
, /RDGLQJ*XLGHOLQHV ।४
,JQLWLRQ&XWRII6\VWHP /RZ)XHO,QGLFDWRU ६१
%DQNLQJ6HQVRU ॥ॣ॥ /RZ2LO3UHVVXUH,QGLFDWRU ६०।५।
6LGH6WDQG ।२॥
,JQLWLRQ.H\ ॥ॣॣ 0
,QGH[
,JQLWLRQ6ZLWFK ६६।ॣ५॥ॣ। 0DLQWHQDQFH
,QGLFDWRUV ६० )XQGDPHQWDOV ।॥ॣ
,1)2'LVSOD\ ॥५ ,PSRUWDQFH ।।२
,1)2'LVSOD\ ०। 6DIHW\ ।।३
,1)2'LVSOD\ ०६ 6FKHGXOH ।।४
,QIRUPDWLRQ5HFRUG ॥॥३ 0D[LPXP:HLJKW/LPLW ।४
,QVWUXPHQWV ॥॥ 0HFKDQLF0RGH ३ॣ
0LOHDJH ४०
/ 0RGLILFDWLRQV ।३
/DEHOV ५ 0XOWL,QIRUPDWLRQ'LVSOD\ ॥०॥२
/$3%XWWRQ ॥१६५
1 4
1HXWUDO,QGLFDWRU ६१ 4XLFN6KLIWHU १३५१।।ॣ
4XLFN6KLIWHU,QGLFDWRU ॥०
2
2GRPHWHU ॥६॥ॣ। 5
g+/,166PDUW(&6\VWHP ।४ॣ 5HDU6HDW ।१ॣ
2LO 5HDU6XVSHQVLRQ ।३४
(QJLQH ।॥६।१० 5HFRPPHQGHG
2YHUKHDWLQJ ।५ॣ &RRODQW ।०॥
2[\JHQDWHG)XHOV ॥।३ )XHO ।।।
2LO ।॥६
3 5HIXHOLQJ ।।।
39DOXH ।ॣ० 5HPRYDO
,QGH[
,QGH[
*HQHUDO १॥३६ 6XVSHQVLRQ$$DQG$ २।
/DS7LPH १॥२२ 6XVSHQVLRQ00DQG0 २॥
6HUYLFH १॥४६ 6ZLWFKHV ६५
6SRUWV.LW १॥
6KLIW,QGLFDWRU ३। 7
6KLIW,QGLFDWRU6HW9DOXH १ॣ 79DOXH ।ॣ०
6KLIW,QGLFDWRUV ६०६३ 7DFKRPHWHU ॥॥॥॥
6KLIWLQJ*HDUV ।ॣ६ 7HPSHUDWXUH ४१
6LGH6WDQG ।२॥ 7KURWWOH ।३।॥ॣ॥
6LGH6WDQG,JQLWLRQ&XWRII6\VWHP ।२॥ 7KURWWOH*ULS$QJOH १ॣ
6SHFLILFDWLRQV ॥॥०
7LUHV 5HDU5HPRYDO ।६ॣ
$LU3UHVVXUH ।००
3XQFWXUH ।५१
5HSODFLQJ ।०२।५१
7RUTXH&RQWURO,QGLFDWRU ६०
7RUTXH&RQWURO2)),QGLFDWRU ६०
7UDQVSRUWLQJ<RXU0RWRUF\FOH ॥ॣ५
7ULSPHWHU ॥६॥ॣ।
7URXEOHVKRRWLQJ ।४५
7XUQ6LJQDO6ZLWFK ६५
8
8QLWV ४।
,QGH[
8VHU/HWWHU १।३१
9
9HKLFOH,GHQWLILFDWLRQ1XPEHU ॥।ॣ
:
:DUUDQW\&RYHUDJHDQG6HUYLFH ॥।५
:DVKLQJ<RXU0RWRUF\FOH ॥ॣ०
:HLJKW/LPLW ।४
:KHHOV
)URQW5HPRYDO ।५२