Phrase structure

ZLWK QXPHUDO DQG FODVVL1HU H[SUHVVLRQV &HUWDLQ QRXQV ZLWK KXPDQ UHIHUHQWV FDQ EH XVHG ZLWK WKH DVVRFLDWLYH SOXUDO PDUNHU 7KLV LV WKH FDVH SDUWLFXODUO\ ZLWK SURSHU QDPHV DQG NLQVKLS VRFLDO DQG SURIHVVLRQDO WHUPV WKDW FDQ DOVR EH XVHG DV SURQRXQV

:LWK QRXQV WyGyLQGLFDWHV WKDW WKH UHIHUHQW LV DFFRPSDQLHG E\ SHRSOH EHORQJLQJ WR KLPKHU ZLWKRXW WKHP EHLQJ RI WKH VDPH NLQG

o„ßyàâ V8…\DGy UWKH WHDFKHU DQG KLVKHU JURXSV Šä‚yàâ “…PHGy U0RWKHU DQG KHU JURXSV

7KHVH H[SUHVVLRQV FRQWUDVW ZLWKV8…\DGZH U HDFKHUVV WKDW LV DOO RI WKH UHIHU HQWV DUH WHDFKHUV DQG“…PHGZH UPRWKHUVV DOO UHIHUHQWV DUH PRWKHUV

:LWK SURQRXQV DV ZHOO DV NLQVKLS VRFLDO DQG SURIHVVLRQDO WHUPV XVHG LQ VWHDG RI SURQRXQV Wy Gy LV WKH QRUPDO SOXUDO PDUNHU :LWK 1UVW DQG VHFRQG SHUVRQ SURQRXQV WyGy PHDQV U; DQG KLV DVVRFLDWHVV UDWKHU WKDQ UPDQ\ LQVWDQFHV RI ;V ZKLOH LQ WKH WKLUG SHUVRQ ERWK UHDGLQJV DUH SRVVLEOH

mÞyàâ ÔDGy UZHV U, DQG P\ JURXSV ‚mØŁyàâ PuQGy U\RXV U\RX DQG \RXU JURXSV ‡ªyàâ ,XGy UWKH\V UKHVKH DQG KLVKHU JURXSV RU UWKH\V ŽŁä…Łyàâ “OqGy U\RXV VSHDNLQJ WR D PDQ DERXW RQHVV SDUHQWVV

DJH UZHV PDQ VSHDNLQJ ‡‚ÆŁyàâ ,…PuGy U\RXV VSHDNLQJ WR \RXQJ JLUOV UZHV \RXQJ JLUO

VSHDNLQJ

7KH ODWWHU WZR XVHG ZLWK WKH JHQHUDO SOXUDO PDUNHU WZH GZH JHW D HDGLQJ DV QRXQV“OqGZH UWKH XQFOHVV,…PuGZH UWKH GDXJKWHUVV

8QOLNH WZH GZH Wy Gy FDQ EH XVHG ZLWK QRXQV RFFXUULQJ ZLWK QXPHUDO DQG FODVVL1HU

o„ßyàâ‡âæŁäƒßiØ V8…\DGy ,RQ\DX“ UWKH WHDFKHU DQG KLV JURXS DOO WRJHWKHU WKUHH SHRSOHV

6LPLODU WR ZH GZH Wy Gy LV XVHG LQ 1[HG IRUPXODV WR H[SUHVV QRQVSHFL1F UHIHUHQWV 7KHUH LV QR FOHDU GL3HUHQFH EHWZHHQ WKH H[SUHVVLRQV 1WZH GZ ED GZHDQG 1Wy Gy EDGy 7KH ODWWHU LV SUREDEO\ PRUH VSHFL1F LQGLFDWLQJ WKDW WKH VSHDNHU KDV D VHW RI YDULRXV LWHPV LQ PLQG ZKHUHDV WKLV LV QRW WKH FDVH ZLWK WKH IRUPHU ,Q WKLV FRQVWUXFWLRQ WKH XVH RI Wy Gy LV QRW UHVWULFWHG WR KXPDQ UHIHUHQWV

nߊâ~Øyàâßyàâi änŒŁyiØ…ßyƒØfl VD“RX“Wy EDGyJi ]qWŽ“ODGŽ ERRN$663/ ZKDW$663/6%- PDUNHWJRXSFRPH1)87 U7KH ERRNV DQG WKH OLNH WKH WKLQJV ZH QHHG IRU VFKRRO DUH JHWWLQJ H[SHQVLYHV

Šå{Æzå‚ìß äjºŁyàâßyàâ „ìàyƒØfl “Ž oGLW8Ž oKPD N8ZqGy EDGy ïtGŽ WKDWLQVLGHDW GRJ$663/ ZKDW$663/ H[LVW1)87 U7KHUH DUH GRJV DQG WKH OLNH LQ WKHUHV

%RWK SOXUDO PDUNHUV FDQ RFFXU LQ D QRXQ SKUDVH LI D SOXUDO QRXQ LV XVHG DV DSSRVLWLRQ WR D SURQRXQ

$663/ \RXQJHUEURWKHU \RXQJHUVLVWHU3/

FKDUDFWHU ZKR 5(675

1(* JRRG1(*

U7KHVH EURWKHUV DQG VLVWHUV QRQH RI WKHP KDV D JRRG FKDUDFWHUV

7KH FODVVL1HU SKUDVH LV D TXDQWLI\LQJ H[SUHVVLRQ FRQVLVWLQJ RI D QXPHUDO DQG D FODVVL1HU ,W RFFXUV DIWHU WKH QRXQ ZKLFK LV FRXQWHG 7KH RUGHU ZLWKLQ WKH FODVVL1HU SKUDVH LV 180(5$/&/$66,),(5 ,Q FRPELQDWLRQ ZLWK QXPHU DOV FODVVL1HUV QHYHU WDNH WKH SUH1[“… 7KH QXPHUDOVWL“ KQL“ DQGN8XQQL“DUH VKRUWHQHG WRW… KQ… DQG N8XQQ… UHVSHFWLYHO\ ZKHQ OLQNHG WR D IROORZLQJ FODVVL1HU 3OXUDO PDUNHUV GR QRW RFFXU ZLWK FODVVL1HUV

iߣ‡âæŁnÆŁ Nj ,zXQ]u UWKUHH FDUVV äiŒßmØŁ‡ßŁìnØäƒßiØ QjXQ>j KQ…\DX“ UWZR VWXGHQWVV nߊâ~ØoƒØŠâ~Ø VD“RX“ V8Ž“RX“ UWHQ ERRNVV

,I WKH KHDG QRXQ LV DOUHDG\ NQRZQ IURP WKH FRQWH[W LV PHQWLRQHG LQ WKH FRQYHUVDWLRQ RU LV YLVLEOH LQ WKH VSHHFK VLWXDWLRQ LW FDQ EH GURSSHG DQG WKH FODVVL1HU SKUDVH DORQH FDQ EH XVHG ,W LV QRW SRVVLEOH WR GURS WKH FODVVL1HU DQG XVH RQO\ WKH QXPHUDO

nߊâ~Ø ƒØìŠâ~Ø †ƒØ‚…åfl ‡âæŁŠâ~Øä…ßiØfl VD“RX“ EŽKQ…“RX“ ZŽP…OŽ ,zXQ“RX“ODX“ ERRN KRZPDQ\&/) EX\)87&4 WKUHH&/)DVPXFKDV U+RZ PDQ\ ERRNV DUH \RX JRLQJ WR EX\"V U$ERXW WKUHHV

:LWK PXOWLSOHV RI KLJKHU WKDQ WKH RUGHU LV UHYHUVHG WR &/$66,),(5 180(5$/ DQG WKH FODVVL1HU XVXDOO\ WDNHV WKH SUH1[“…

iߣ ŠnÆŁ‡âæŁ„ß Nj “…Vu ,zXQ\D UWKUHH KXQGUHG FDUVV o„ß ŠäƒßiØmÞŁ„ß V8…\D “…\DX“ Ôj\D U1YH KXQGUHG WHDFKHUVV ˆ‚؁ßkÞ ŠjâìnØoƒØ KDQEDJD “…N8~ KQ…V8Ž UWZHQW\ KDPEXUJHUVV …àä‚×ßØ‡ÆŁ Š…âæŁä…ŁoƒØ OHLQPæ>u “…OzXQ Oq]ŽUIRUW\ RUDQJHVV

$Q DOWHUQDWLYH SDWWHUQ LV 1281&/)\H EHIRUH URXQG QXPHUDOV ZKHUH WKH VX4[ _ \H LV GHULYHG IURP WKH YHUE\ UWR FRXQWV

Oq>jXQ UIRUW\ WKRXVDQG VWXGHQWVV

UWZR ELOOLRQ PRELOH SKRQHVV

,Q VRPH FDVHV WKH FODVVL1HU FDQ EH GURSSHG DQG WKH QXPHUDO RFFXUV GLUHFWO\ DIWHU WKH QRXQ ZKLFK LV FRXQWHG

‡ªŠà‚Ø‚ìß nߊâ~ØynØ„ßä…ßiØ „ìàyƒØfl ,~ “HLQKPD VD“RX“ W…\DODX“ ïtGŽ ’(3 KRXVHDW ERRN RQHKXQGUHGDVPXFKDV H[LVW1)87 U+H KDV DERXW D KXQGUHG ERRNV DW KRPHV

,I DQ DSSUR[LPDWH QXPEHU LV WR EH H[SUHVVHG WKH QRUPDO IRUPXOD LV ; &/$66,),(5 <&/$66,),(5 ZKHUH ; DQG < VWDQG IRU DGMDFHQW QXPEHUV DV LQ

…ªìnØäƒßi؇âæŁäƒßiØ OX KQ…\DX“ ,zXQ\DX“ UWZR RU WKUHH SHRSOHV nߊâ~ØmÞŁŠâ~ØäîjßiØŠâ~Ø VD“RX“ Ôj“RX“ Q8DX““RX“ U1YH RU VL[ ERRNVV

([FHSWLRQV DUH UWKUHH RU IRXUV DQG UIRXU RU 1YHV LQ ZKLFK FDVH WKH FODVVL1HU RFFXUV RQO\ DIWHU WKH VHFRQG QXPHUDO

iߣ‡âæŁä…ŁnÆŁ Nj ,zXQ Oq]u UWKUHH RU IRXU FDUVV ‡ªmƒØjŒmØŁä…ŁmÞŁäƒßiØ ,…ÔŽ8uQ Oq Ôj\DX“ UIRXU RU 1YH IULHQGVV

%HVLGHV QXPHUDOV D QXPEHU RI RWKHU ZRUGV DUH XVHG WR H[SUHVV TXDQWLWLHV 7KH\ XVXDOO\ RFFXU DIWHU QRXQV RU FODVVL1HUV ZLWK WKH SUH1[“…

tàin dàin ¶HDFK HYHU\• 7KLV JHQHUDO TXDQWL1HU LQGLFDWHV WKDW WKH SUHGLFDWH LV WUXH IRU DOO LQVWDQFHV RI ; ,W DWWDFKHV GLUHFWO\ WR QRXQV ZLWKRXW LQWHUYHQLQJ FODVVL1HUV 7KLV TXDQWL 1HU IUHTXHQWO\ RFFXUV ZLWK PHDVXUH ZRUGV

…ªyàâmØŁ ‡àyƒØfl OXGjLQ ,tGŽ SHUVRQHYHU\ NQRZ1)87 U(YHU\RQH NQRZVV

‡ªi äiŒßmØŁä}yàâmØŁyiØyƒØfl ,XJi QjXQ QpGjLQ WŽ“WŽ 6%- VFKRRO GD\HYHU\ JRXS1)87 U+H JRHV WR VFKRRO HYHU\ GD\V

,I WKH QRXQ LV IROORZHG E\ D FODVVL1HU DQG WKH TXDQWL1HU WjLQ GjLQ WKH H[ SUHVVLRQ EHFRPHV PRUH HPSKDWLF

iߣŠnÆŁyàâmØŁ Nj “…VuGjLQ UHYHU\ VLQJOH FDUV nߊâ~ØŠŠâ~ØyàâmØŁ VD“RX“ “…“RX“WjLQ UHYHU\ VLQJOH ERRNV

â}ØŁ Š…âæŁyàâmØŁ €‚ßäßmØç‚~ށªŁfl S8zXQ “…OzXQGjLQ E…PDS8iXQ P…SDE SKRQH &/)HYHU\ %XUPDIRQW 1(*LQFOXGHG1(* U1RW HYHU\ WHOHSKRQH KDV %XUPHVH IRQWVV

yæjÞŁŠä~ÞiØyàâmØŁ ä‡ßçjyØzߣyƒØfl G…Jj “…SDX“WjLQ ,æb N8D“W8jGŽ GRRU &/)HYHU\ NH\ VHFXUHNHHS1)87 U$OO GRRUV DUH ORFNHGV

&RPELQHG ZLWK YHUEV WjLQ GjLQPHDQV UHDFK WLPHV

Š}ØyÆyàâ…ßyàâmØŁ …iØäoßmØ~ÞjåçyƒØfl “…GæGy ODGjLQ OŽ“V8DXQ SDJŽ bGŽ DXQW$663/ FRPHHYHU\ SUHVHQW LQFOXGH’,63/1)87 U(DFK WLPH DXQW DQG KHU SHRSOH FRPH WKH\ EULQJ SUHVHQWVV

tə-N-lòun ¶WKHZKROH1• 7KLV TXDQWL1HU ZKLFK LV PDGH XS IURP WKH SUH1[ … URQHV DQG WKH SRVWSRVHG OzXQUURXQGV GHVFULEHV WKH FRPSOHWHQHVV RI WKH UHIHUHQW ,W QDWXUDOO\ RFFXUV ZLWK PHDVXUH ZRUGV FODVVL1HUV DQG QRXQV WKDW GHQRWH PHDVXUHV RU FDQ EH FRQFHLYHG DV VXFK

äiŒßmØŁ‡ßŁäyºynØy}ØŁ…âæŁ nßä‚Ł~ºåäŠßmØïiyƒØfl QjXQ>jGZH W…GjQOzXQ VDPqEZŽ o “DXQ8iGŽ VWXGHQW3/ RQHFODVVZKROH H[DP VXFFHHG3/1)87 U$OO VWXGHQWV LQ WKH FODVV SDVVHG WKH H[DPVV

‡ª‚à⣂à…àâ ynØiàâƒØ…âæŁnàâä}yƒØfl ,X Pz PtOy W…JROzXQ VRQHGŽ VN\ FDWFK68% RQHERG\ZKROH ZHWVWD\1)87 U$V KH ZDV KLW E\ WKH UDLQ KHVV DOO ZHWV

î~s؇ªäyºynØð‚à…âæŁ o—î~ä}yƒØfl S\L>XGZH W…P\yOzXQ V8DQGi S\iQHGŽ FLWL]HQ3/ RQHWRZQZKROH GHVLUH VKRZVWD\1)87 U7KH SHRSOH DUH GHPRQVWUDWLQJ DOO RYHU WKH WRZQV

{Æð‚à‚ìßynØìnØ…âæŁ~ªyƒØfl GL P\yKPD W…KQL“OzXQ SXGŽ WKLV WRZQDW RQH\HDUZKROH KRW1)87 U,Q WKLV WRZQ LWVV KRW DOO \HDU URXQGV

Šå{ÆänŒŁoàâmØ ynØs…âæŁºmØçyƒØfl “Ž oGL ]qV8DLQ W…ÑiOzXQ S8ZtQGŽ WKLV PDUNHWVKRS RQHQLJKWZKROH RSHQ1)87 U7KLV VKRS LV RSHQ DOO QLJKWV

,Q /LWHUDU\ %XUPHVH FRPSOHWHQHVV LV H [SUHVVHG E\ SUHSRVHG“jOzXQ>æo

ŠßŁ…âæŁä‡ßð‚à “jOzXQ>æo P\y UWKH ZKROH WRZQV ŠßŁ…âæŁä‡ßî‚nØ “jOzXQ>æo P\L“ UWKH ZKROH ULYHUV

səlòun zəlòun lòun ¶DOORI • 7KLV PRGL1HU DSSHDUV DIWHU WKH FODVVL1HU SKUDVH WR HPSKDVL]H WKH FRPSOHWH QHVV RI WKH LQGLFDWHG QXPEHU ,W LV VLPLODU WR (QJOLVK UERWKV EXW GL3HUV IURP (QJOLVK LQ EHLQJ DSSOLFDEOH DOVR WR KLJKHU QXPHUDOV 7KH QRUPDO SDWWHUQ LV 1281 180(5$/&/$66,),(5 V…OzXQ

o„߆}؇âæŁäƒßiØn…âæŁ V8…\DZXQ ,zXQ\DX“V…OzXQ UDOO WKUHH GRFWRUVV ºßŁmÞŁäißmØn…âæŁ QZj ÔjJDXQ]…OzXQ UDOO 1YH FRZVV ‚àìnØ~ÞŁ…âæŁ PtEi KQ…SjOzXQ UERWK SDUHQWVV UERWK PRWKHU DQG IDWKHUV

7KLV TXDQWL1HUPRGL1HU LV EDVLFDOO\ WKH VDPH DV WKH SUHFHGLQJ RQH …1 OzXQ ZLWK QXPHUDOV KLJKHU WKDQ RQH 7KH GL3HUHQFH OLHV LQ WKH (QJOLVK HTXLYD OHQWV UDWKHU WKDQ LQ WKH %XUPHVH FRQVWUXFWLRQ LWVHOI &RPSDUH WKH IROORZLQJ H[SUHVVLRQV

nߊâ~ØynØŠâ~Ø…âæŁ VD“RX“ W…“RX“OzXQ UWKH ZKROH ERRNV UDOO RI RQH ERRNV nߊâ~ØìnØŠâ~Ø…âæŁ VD“RX“ KQ…“RX“OzXQ UERWK ERRNVV UDOO RI WZR ERRNVV nߊâ~؇âæŁŠâ~Ø…âæŁ VD“RX“ ,zXQ“RX“OzXQ UDOO WKUHH ERRNVV UDOO RI WKUHH ERRNVV

pàun bàun ¶VXP FRPELQHG QXPEHU WRWDO• 7KLV PDUNHU LV SODFHG DIWHU QRXQV DQG PHDVXUH ZRUGV WR LQGLFDWH WKH FRP ELQHG QXPEHU RU WRWDO RI UHIHUHQWV ,Q (QJOLVK WKLV PDUNHU RIWHQ UHPDLQV XQWUDQVODWHG

äoŁî~ߣä~ÞmØŁ ìn؇}ØŁä…Ł‡à}ØŁ}ÆŁ~ÞŁ V8qE\jEjXQ KQ…,jQ Oq>qLQ QuEj GUXJSLOOFRPELQH WZRPLOOLRQ IRXUKXQGUHGWKRXVDQG DOPRVW UDOPRVW SLOOVV

ìnØä~ÞmØŁ mÞŁ„ßäiŒßØäiŒßØ KQL“SjXQ Ôj\D8æ8æ \HDUFRPELQH 1YHKXQGUHGEH\RQGEH\RQG URYHU 1YH KXQGUHG \HDUV DJRV

ʔəmyà.zòun ¶DWWKHPRVW•ʔənɛ.̀zòun ¶DWWKHOHDVW• 7KHVH DGYHUELDOV IRUPDOO\ VXSHUODWLYH IRUPV RIP\j UPXFK PDQ\V DQGQŽ o UOLWWOH IHZV FRPELQH ZLWK TXDQWLI\LQJ H[SUHVVLRQV WR LQGLFDWH WKH ELJJHVW RU VPDOOHVW QXPEHU RI UHIHUHQWV 7KH QRUPDO SDWWHUQ LV 1281“…P\j]zXQ “…QŽ o]zXQ 180(5$/&/$66,),(5

iâ}ØiŒn„àyØ Š‚ŒßŁoâæŁŠäoßiØŠŽ NRXQQi]…\HL“ “…P\j]zXQ “…V8DX““…“X H[SHQVHV PRVW EXLOGLQJ UWKH EXLOGLQJ WKDW FRVW WKH PRVWV

Šß…ªŁ Š‚ŒßŁoâæŁynØiÆ…àâ …àâyƒØfl “DO “…P\j]zXQ W…NLOR ORGŽ SRWDWR PRVW RQHNLOR UHTXLUH1)87 U:H QHHG DW PRVW RQH NLOR RI SRWDWRHVV

ynØy}ØŁ‚ìß äiŒßmØŁ‡ßŁŠ‚ŒßŁoâæŁ oƒØçmÞŁäƒßiØ„ìàyƒØfl W…GjQKPD QjXQ>j “…P\j]zXQ V8Ž bÔj\DX“ ïtGŽ RQHFODVVDW VWXGHQW PRVW1I HHQ&/) H[LVW1)87 U7KHUH DUH DW PRVW 1IWHHQ VWXGHQWV LQ RQH FODVVV

äçâyØ‚ìß ‡ªmƒØjŒmØŁŠ}sØŁoâæŁ mÞŁ„ßä…ßiØ …àâjŒmØyƒØfl S8pERX“KPD ,…ÔŽ8uQ “…QŽ o]zXQ Ôj\DODX“ OR8LQGŽ )DFHERRNDW IULHQG OHDVW1YHKXQGUHG

DVPXFKDV UHTXLUHZDQW 1)87

U, ZDQW WR KDYH DW OHDVW 1YH KXQGUHG IULHQGV RQ )DFHERRNV

äißØÆ Š}sØŁoâæŁ ìnØjºiØä‡ßiØ‚ƒØfl NæS8L “…QŽ o]zXQ KQ…N8ZŽ“ ,DX“PŽ FR3HH OHDVW WZRFXS GULQN)87 U, ZLOO GULQN DW OHDVW WZR FXSV RI FR3HHV

ʔəmyà.zú ¶PRVWRIPDMRULW\•ʔənɛ.̀zú ¶IHZHVWRIPLQRULW\• 7KHVH IRUPV FDQ EH XVHG DV SRVWQRPLQDO PRGL1HUV RU E\ WKHPVHOYHV DV SURQRXQV 7KH\ DUH PDGH XS IURPP\j UPXFK PDQ\V DQGQŽ oUOLWWOH IHZV FRPELQHG ZLWK“…V~ UJURXS VHWV 7KH\ H[SUHVV WKH PDMRULW\ RU PLQRULW\ RI

WKH UHIHUHQWV UHVSHFWLYHO\ ,Q VRPH FRQWH[WV WKHVH IRUPV FDQ EH UHSODFHG E\ “…P\j]zXQ DQG“…QŽ o]zXQ ZKLFK H[SUHVV VLPLODU QRWLRQV

…ªŠ‚ŒßŁnâi {ƍ~ä{iàâ o}ØiŒmØïiyƒØfl OX “…P\j]~Ji GL “~S…GHJR V8iQQLQ8iGŽ SHUVRQ PDMRULW\6%- WKLV ODZ2%- RSSVHG3/1)87 U0RVW SHRSOH DUH RSSRVHG WR WKLV ODZV

PDQ PDMRULW\6%- XULQH GLVHDVH

10/EH PXFK 1)87

U0RVW PHQ JHW XULQDU\ SUREOHPV EHFDXVH RI FLJDUHWWHVV

Š…â~؇‚ߣŠ‚ŒßŁnâi ä…ŒßØäïiŁämº‚„䇣ªŁfl “…ORX“,…Pj “…P\j]~Ji \æ8qÔZH P…\i>qE ZRUNHU PDMRULW\6%- FRPSHQVDWLRQVLOYHU 1(*JHW\HW1(* U0RVW RI WKH ZRUNHUV KDYHQVW UHFHLYHG WKHLU FRPSHQVDWLRQ \HWV

7KH IROORZLQJ H[DPSOH IURP WKH OLWHUDU\ VW\OH VKRZV LQVWDQFHV RI ERWK UPD MRULW\V DQG UPLQRULW\V

JR PDMRULW\3266 GHVLUH2%- IROORZKHHGJHW

1)87’(3DV PLQRULW\ 3266

DWWLWXGH 2%-

OŽ o Oq]j\iP\L S8\L“,L DOVR UHVSHFWJHW)87 EH1)87

U$V ZH QHHG WR IROORZ WKH GHVLUH RI WKH PDMRULW\ ZH DOVR QHHG WR UHVSHFW WKH RSLQLRQ RI WKH PLQRULW\V

təʨʰó ¶VRPH• 7KH VHOHFWLYH TXDQWL1HUW… 8yUVRPHV FDQ RFFXU DV D SUHQRPLQDO PRGL1HU DV LQW…Q8y OXUVRPH SHRSOHV RU LQ SRVWQRPLQDO SRVLWLRQ DV LQOX W…Q8yUVRPH SHR SOHV 7KHUH LV QR REYLRXV GL3HUHQFH LQ PHDQLQJ EHWZHHQ WKH WZR FRQVWUXFWLRQV

7KH IRUPW…Q8yUVRPHV LV D IUHH SURQRXQ ZKLFK FDQ DOVR RFFXU RQ LWV RZQ ZLWKRXW DQ DFFRPSDQ\LQJ QRXQ

yjŒàŠà‚Ø‚ìß ‚ÆŁ~ŒiØyƒØfl W…Q8y “HLQKPD Pu S\Ž“WŽ VRPH KRXVHDW 1UH EURNHQ187 U7KH HOHFWULFLW\ GRHVQVW ZRUN LQ VRPH KRXVHVV

GŽ WKLV PDUNHW

DW PDUNHW VKRS

PDQ\ 1)87

VRPH6%- RQHQLJKW ZKROH

RSHQ 1)87

U7KHUH DUH PDQ\ VKRSV LQ WKLV PDUNHW VRPH RI WKHP DUH RSHQ DOO QLJKWV

,Q /LWHUDU\ %XUPHVH WKH IRUP“…Q8y LV XVHG LQ WKH VDPH FRQVWUXFWLRQV ZLWK WKH VDPH PHDQLQJ DV FROORTXLDOW…Q8y

ŠjŒà…ª “…Q8y OX UVRPH SHRSOHV …ªŠjŒà OX “…Q8y UVRPH SHRSOHV

ʔà.lòun ¶DOO• 6LPLODU WR …Q8yUVRPHV“jOzXQ FDQ RFFXU RQ LWV RZQ DQG IXQFWLRQV OLNH D SURQRXQ DQG FDQ DOVR EH XVHG DV D SRVWQRPLQDO TXDQWL1HU 7KH KHDG QRXQ PD\ RSWLRQDOO\ WDNH WKH SOXUDO PDUNHU WZH GZH

{Æ…ªäyºŠßŁ…âæŁ Škü…à~Øniߣäî~ßyyØyƒØfl GL OXGZH “jOzXQ “LQJ…OHL“ ]…Jj S\æoGD“WŽ WKLV SHUVRQ3/ DOO(QJOLVK ODQJXDJH VSHDNVNLOOHG1)87 U$OO WKHVH SHRSOH FDQ VSHDN (QJOLVKV

yàâmØŁ„mØŁ‡ßŁŠßŁ…âæŁ„å Šj}ØŁii Šä„ŁæiÆŁyƒØfl WjLQ\uQ>j “jOzXQ\Ž b “…N8jQJ…QGiJi “…\qQuGŽ HWKQLFSHRSOH DOO3266 UROH6%-D3DLUELJ1)87 U7KH UROH RI DOO WKH HWKQLF JURXSV LV LPSRUWDQWV

7KH IROORZLQJ H[DPSOH LV IURP /LWHUDU\ %XUPHVH

VSRUWFRPSHWH HYHQW3/LQ

XQLYHUVLW\ DOOSDUWLFLSDWH VRWKDW

LQYLWH 1)87

U$OO WKH XQLYHUVLWLHV DUH LQYLWHG WR SDUWLFLSDWH LQ WKH VSRUWV HYHQWVV

tə; təle ¶VRPH D IHZ• 7KLV SDWWHUQ LV XVHG WR GHQRWH D IHZ LQVWDQFHV RI WKH UHIHUHQW RU VSRUDGLF VSUHDG RXW RFFXUUHQFHV RI WKH UHIHUHQW ,W LV QRUPDOO\ XVHG ZLWK FODVVL1HUV RU PHDVXUH ZRUGV

ynØäƒßiØyä… W…\DX“W…OH UVRPH SHRSOH D IHZ SHRSOHV ynØjÞyä… W…N8DW…OH UVRPHWLPHVV

äißØÆynØjºiØyä… ä‡ßiØjŒmØyƒØfl NæS8L W…N8ZŽ“W…OH ,DX“Q8LQGŽ FR3HH RQHFXSRURWKHU GULQNZDQW1)87 U,VG OLNH WR GULQN D FR3HH RU WZRV

&2175 D3DLU 1(*H[LVW

,032571(* U*HWWLQJ WLUHG VRPHWLPHV LV QR ELJ GHDOV

„ºß‡ª„ºß‡ßŁäyº ynØäƒßiØyä… ‡àyƒØzmØyƒØfl \ZD>X\ZD>jGZH W…\DX“W…OH ,tGŽ W8LQGŽ IHPDOHYLOODJHU PDOHYLOODJHU3/

RQH&/) RURWKHU

NQRZ1)87 WKLQN1)87

U6RPH YLOODJHUV NQRZ , WKLQNV

məká ¶PRUH WKDQ QRWDV IHZ DV• 7KH H[SUHVVLRQP…Ni UQRW DV IHZ DVV LV D IRVVLOL]HG QHJDWHG YHUE ZKLFK RFFXUV LQ LWV IXOO IRUPP…NiE ULW LV QRW RQO\ DV PXFK DVV ,Q WZR LGLRPDWLF H[SUHV VLRQVNi DSSHDUV LQ QRQQHJDWHG FRQWH[WV QDPHO\ ;EŽ NiP… OŽ oUKRZ FDQ LW EH DV OLWWOH DV ;V DQG ;NiP… Oj UZLOO LW EH DV OLWWOH DV ;V %RWK WKHVH H[SUHV VLRQV DUH IRUPDOO\ TXHVWLRQV EXW WKH SUDJPDWLF PHDQLQJ LV WKH VDPH DV ;

P…NiE ULW LV QRW DV OLWWOH DV ;V ,Q DOO FDVHV WKH PHDQLQJ LV WKDW WKH DPRXQW RU TXDQWLW\ H[SUHVVHG E\ ; LV WRR VPDOO DQ HVWLPDWH DQG WKH VSHDNHU LV VXJ JHVWLQJ WKDW D KLJKHU DPRXQW RU TXDQWLW\ LV DFWXDOO\ WKH FDVH ; FDQ EH HLWKHU D FODVVL1HU SKUDVH RU D QRXQ ,Q WKH ODWWHU FDVH WKH UHVWULFWLYH PDUNHU ,D>D URQO\V LV IUHTXHQWO\ DGGHG DIWHU WKH QRXQ

{ÆŠj}ØŁ‚ìß mÞŁäƒßiØ‚iä}…àâ„yƒØfl GL “…N8jQKPD Ôj\DX“P…Ni QHOy \iGŽ WKLV URRPDW 1YH&/)QRWDVIHZ VWD\68% JHW1)87 U0RUH WKDQ 1YH SHRSOH FDQ VWD\ LQ WKLV URRPV

{Æo„ß‚ î‚}Ø‚ßnß‚i ‚º}Ønß…sØŁ ‡mØä~ŁyƒØfl GL V8…\DPi P\DQPD]DP…Ni PXQ]D OŽ o ,LQSqGŽ WKLV WHDFKHU) 0\DQPDUZULWLQJ

QRWDVIHZ 0RQWH[W DOVR WHDFKJLYH

1)87 U7KLV WHDFKHU GRHVQVW RQO\ WHDFK %XUPHVH VFULSW VKH DOVR WHDFKHV 0RQV

%XUPHVH KDV GL3HUHQW SRVVLELOLWLHV IRU OLVWLQJ DQG HQXPHUDWLQJ LWHPV $ OLVW FDQ EH HLWKHU H[KDXVWLYH QDPLQJ DOO UHOHYDQW LWHPV RU UHSUHVHQWDWLYH LQ FOXGLQJ RQO\ D VPDOO QXPEHU RI UHSUHVHQWDWLYH LWHPV (QXPHUDWLYH OLVWV HQWHU D FODXVH OLNH RWKHU QRXQ SKUDVHV DQG VKRZ WKH VDPH V\QWDFWLF EHKDYLRU LQ PRVW FRQWH[WV

([KDXVWLYHOLVWV ,I WKH OLVW FRQWDLQV RQO\ WZR LWHPV WKH QRUPDO IRUP LV WR FRQQHFW WKH WZR LWHPV E\ $QŽ b% U$ ZLWK %V RU U$ DQG %V

z‚mØŁ}åˆmØŁ W8…PuQQŽ b KuQ UULFH DQG FXUU\V Šä}åŠä‚ “…S8HQŽ b “…PH UPRWKHU DQG IDWKHUV Šî}劂sØŁ “…S8\XQŽ b “…PŽ o UEODFN DQG ZKLWHV

,Q ORQJHU OLVWV DOO HOHPHQWV DUH OLQNHG E\ WKH SRVWSRVHG PDUNHU \Ž U(QXPHU DWLYHV 7KH LWHPV FDQ EH EDUH QRXQV SURQRXQV RU QRXQ SKUDVHV LQFOXGLQJ PRGL1HUV DQG SRVWSRVLWLRQDO PDUNHUV 7KH SRVWSRVLWLRQDO PDUNHUV DUH RIWHQ GURSSHG LQ HQXPHUDWLRQ HYHQ LI WKH\ DUH REOLJDWRU\ LQ RWKHU FRQWH[WV 7KH HQXPHUDWLYH SDUWLFOH DOZD\V RFFXUV DV ODVW HOHPHQW LQ WKH H[SUHVVLRQ

‚à‚à„ƒØ ‚î„ƒØ iàâ†mØŁ„ƒØ âæŁ‡ºßŁïiyƒØfl PtPt\Ž PiS8\X\Ž NRZuQ\Ž \zXQ ,Zj8iGŽ 0L0L (180

0D3K\X (180

.R:LQ (180

R4FH JR3/ 1)87

U0L 0L 0D 3K\X DQG .R :LQ ZHQW WR WKH R4FHV

nߊâ~Ø„ƒØ iº}Ø~Œyß„ƒØ iØz„Æ„ƒØ †ƒØð~ÆŁð~Æfl VD“RX“\Ž NXQS\XWD\Ž EŽ“W8…UL\Ž ZŽSuEL ERRN (180

FRPSXWHU (180

EDWWHU\ (180

EX\1QLVKHG 16,7

W, KDYH DOUHDG\ ERXJKW WKH ERRNV WKH FRPSXWHU DQG WKH EDWWHU\V

‡ªi „}Øiâ}Ø‚ìß„ƒØ ‚˛ä…Ł‚ìß„ƒØ ~âkæ‚ìß„ƒØ ä}ªŁyƒØfl ,XJi \DQJRXQKPD\Ž PjQG…OqKPD\Ž E…JDQKPD\Ž QHEGŽ 6%- <DQJRQDW

(180 0DQGDOD\DW (180

%DJDQDW (180

VWD\HYHU 1)87

U+H KDV OLYHG LQ <DQJRQ 0DQGDOD\ DQG %DJDQV

Šäçiàâ„ƒØ Šä‚çiàâ„ƒØ ŽŁiàâ„ƒØ ä~Ł‚ƒØfl “…S8pJR\Ž “…PpJR\Ž “JR\Ž SqPŽ IDWKHU’(32%- (180

PRWKHU’(32%- (180

XQFOH2%-(180 JLYH)87

U:H ZLOO JLYH VRPH WR )DWKHU 0RWKHU DQG 8QFOHV

‡ªi „}Øiâ}Ø„ƒØ ‚˛ä…Ł„ƒØ ~âkæ„ƒØ ä}ªŁyƒØfl ,XJi \DQJRXQ\Ž PjQG…Oq\Ž E…JDQ\Ž QHEGŽ 6%- <DQJRQ

(180 0DQGDOD\ (180

%DJDQ (180

VWD\HYHU 1)87

U+H KDV OLYHG LQ <DQJRQ 0DQGDOD\ DQG %DJDQV

Šäç„ƒØ Šä‚ç„ƒØ ŽŁ„ƒØ ä~Ł‚ƒØfl “…S8p\Ž “…Pp\Ž “\Ž SqPŽ IDWKHU’(3(180 PRWKHU’(3(180 XQFOH(180 JLYH)87 U:H ZLOO JLYH VRPH WR )DWKHU 0RWKHU DQG 8QFOHV

$OWHUQDWLYHO\ H[KDXVWLYH OLVWV FDQ EH PDGH ZLWK WKH SDWWHUQ $ % &QŽ b’ ,Q WKLV FDVH RQO\ WKH ODVW HOHPHQW WDNHV WKH SRVWSRVLWLRQDO PDUNHUV

‡ªi „}Øiâ}Øfi äyßmØæiÆŁfi ‚˛ä…Ł}å ~âkæ‚ìß ä}ªŁyƒØfl ,XJi \DQJRXQ WDXQ8u PjQG…OqQŽ b E…JDQKPD QHEGŽ 6%- <DQJRQ 7DXQJJ\L 0DQGDOD\

ZLWK %DJDQDW VWD\HYHU

1)87 U+H KDV OLYHG LQ <DQJRQ 7DXQJJ\L 0DQGDOD\ DQG %DJDQV

,I RQO\ WZR HOHPHQWV DUH OLVWHG DV $\Ž % \Ž U$ DQG %V WKH GL3HUHQFH WR $ Ž b % LV WKDW LQ WKH IRUPHU SDWWHUQ WKH IRFXV LV PRUH RQ WKH LQGLYLGXDO HOHPHQWV ZKLOH WKH ODWWHU HPSKDVL]HV WKH FROOHFWLYH PHDQLQJ

$QRWKHU ZD\ RI IRUPLQJ FRRUGLQDWH OLVWV LV WKH SDWWHUQ $\æo% SD RU $\æo % \æo 6RPHWLPHVNæoLV XVHG LQVWHDG RI\æo 7KHVH SDWWHUQV RFFXU ZLWK WZR RU PRUH LWHPV ZKLFK PD\ EH PRGL1HG E\ SRVWSRVHG FDVH PDUNHUV

„}Øiâ}Ø‚ìßä„ß ‚˛ä…Ł‚ìßä„ß ä}î~sØäyßØ‚ìßä„ß Š…â~Ø…â~تŁyƒØfl \DQJRXQKPD \æo

7DQJRQDW (180

0DQGDOD\DW (180

1D\S\LGDZDW (180

ZRUN GRHYHU 1)87

U+H KDV ZRUNHG LQ <DQJRQ 0DQGDOD\ DQG 1D\S\LGDZV

,Q /LWHUDU\ %XUPHVH WKH HQXPHUDWLYH SDUWLFOHV\Ž DQG\æoDUH QRW ZLGHO\ XVHG /LVWV DUH IRUPHG E\ VLPSO\ SXWWLQJ WKH LWHPV WRJHWKHU ZLWKRXW DQ\ OLQNLQJ HOHPHQW LQ WKH SDWWHUQ $ % &KQt ’ ZLWK WKH OLWHUDU\ IRUPKQtQ ZLWKV IRU FROORTXLDOQŽ b $ WHUQDWLYHO\ HVSHFLDOO\ ZKHQ RQO\ WZR LWHPV DUH OLQNHG WKH SDWWHUQ $O…JjXQ % O…JjXQ FDQ EH XVHG OLWHUDOO\ U$ DV ZHOO DV %V RU U$ LV JRRG % LV DOVR JRRGV

,Q D UHSUHVHQWDWLYH OLVW D IHZ H[DPSOHV DUH JLYHQ XVXDOO\ HQGLQJ LQ D JHQHUDO QRXQ GHQRWLQJ WKH FDWHJRU\ 7KH QRUPDO SDWWHUQ LV $ % & ’Vi GŽ b1 U1 OLNH $ % & ’ HWFV ZKHUH $ % & DQG ’ VWDQG IRU VSHFL1F LWHPV DQG 1 IRU WKH JHQHUDO WHUP 7KH JHQHUDO QRXQ XVXDOO\ WDNHV WKH SOXUDO PDUNHU WZH GZ 7KH IRUPViGŽ b UHWFV OLWHUDOO\ PHDQV UEHJLQQLQJV 8QOLNH LQ H[KDXVWLYH OLVWV WKH HQXPHUDWLYH OLQNHU \Ž LV QRW QRUPDOO\ XVHG LQ UHSUHVHQWDWLYH OLVWV

WKLV VKRS FKLFNHQ PHDW

SLJ PHDW

JRDW PHDW

HWFHWHUD PHDW 3/

VHOO 1)87

U7KLV VKRS VHOOV PHDWV OLNH FKLFNHQ SRUN PXWWRQ HWFV

„}Øiâ}Øfi ‚ ˛ä…Łfi äyßmØæiÆŁ nyåçð‚àäyº‚ìß iߣ‚ŒßŁyƒØfl \DQ JRXQ

<DQ JRQ

0DQ GDOD\

7DXQJ J\L

HWFHWHUD WRZQ3/ DW

FDU PDQ\ 1)87

U,Q FLWLHV OLNH <DQJRQ 0DQGDOD\ 7DXQJJ\L HWF WKHUH DUH PDQ\ FDUVV

,Q /LWHUDU\ %XUPHVH WKH PDUNHUViGŽ b LV FKDQJHG WRVi>t RWKHUZLVH WKH VDPH FRQVWUXFWLRQ LV XVHG LQ UHSUHVHQWDWLYH OLVWV

1RQVSHFLILFSDUDOOHOOLVWV ,Q QRQVSHFL1F SDUDOOHO HQXPHUDWLRQ DOWHUQDWLYH SRVVLEOH UHIHUHQWV DUH OLVWHG ZLWKRXW VSHFLI\LQJ ZKLFK RQH LV DFWXDOO\ PHDQW 7KH\ KDYH WKH IRUP ;S8\L“ S8\L“ < S8\L“S8\L“= S8\L“S8\L“UZKHWKHU LW EH ; RU < RU =V ZLWK WKH UHGX SOLFDWHG FRSXODS8\L“ UWR EHV 7KLV FRQVWUXFWLRQ LV QRW UHVWULFWHG WR QRPL QDO H[SUHVVLRQV EXW FDQ DOVR EH XVHG WR HQXPHUDWH YHUEDO DQG FODXVDO HOH PHQWV

ä{í…ßînØînØ iŒ~ØînØînØ ƒªàâînØînØ ä~Ł„‚ƒØfl GæOD S8\L“S8\L“ QD“ S8\L“S8\L“ XUR S8\L“S8\L“ Sq\iPŽ GROODU EHEH .\DW EHEH HXUR EHEH JLYHJHW)87 U<RX KDYH WR SD\ EH LW LQ GROODUV .\DW RU HXURVV

/LWHUDU\ %XUPHVH XVHV ;S8\L“VHUOHW LW EH ; PD\ LW EH ;V LQVWHDG RI FROORTXLDO ;S8\L“S8\L“LQ QRQVSHFL1F SDUDOOHO OLVWV

&ROORTXLDO %XUPHVH KDV D WKUHHZD\ V\VWHP RI GHPRQVWUDWLYHV LQGLFDWLQJ GL3HUHQW GHJUHHV RI UHPRWHQHVV UHOHYDQFH WR WKH VSHHFK VLWXDWLRQ DQG VSHFL 1FLW\ 7KH GHPRQVWUDWLYHV DUH DOZD\V DWWDFKHG WR QRXQV RU RWKHU HOHPHQWV DQG GR QRW RFFXU RQ WKHLU RZQ 7KH\ RFFXU DV SUHQRPLQDO PRGL1HUV LQ QRXQ

SKUDVHV RU ZLWK SRVWSRVHG FDVH PDUNHUV RU VLPLODU HOHPHQWV LQ DGYHUELDO SKUDVHV

GL¶WKLV•7KH SUR[LPDO GHPRQVWUDWLYHGLU KLVV GHQRWHV D SHUVRQ RU REMHFW WKDW LV FORVH WR WKH VSHDNHU DQG WKH KHDUHU DQG LV DQ LPPHGLDWH SDUW RI WKH VSHHFK VLWXDWLRQ ,I D FRQWUDVW LV WR EH PDGH EHWZHHQ FORVH WR WKH VSHDNHU DQG FORVH WR WKH KHDUHUGLDOZD\V UHIHUV WR SUR[LPLW\ WR WKH VSHDNHU ,W LV DOZD\V VSHFL1F

KR¶WKDW•7KH GHPRQVWUDWLYHKRUWKDWV GHQRWHV D SHUVRQ RU REMHFW WKDW LV UH PRYHG IURP ERWK WKH VSHDNHU DQG WKH KHDUHU DQG LV QRW SDUW RI WKH VSHHFK VLWXDWLRQ $ SHUVRQ RU REMHFW PDUNHG ZLWKKRUWKDWV LV QRW QHFHVVDULO\ VSHFL1F RU UHIHUHQWLDO EXW UDWKHU IDU DZD\ DQG QRW UHOHYDQW WR WKH SUHVHQW VSHHFK VLWXDWLRQ ,W PD\ EH XQNQRZQ WR ERWK VSHDNHU DQG KHDUHU

“Ž oGL¶WKDW•7KH IRUP“Ž oGL LQ FDVXDO VSHHFK RIWHQ UHGXFHG WR“Ž o FRYHUV SDUWV RI ERWKGLUWKLVV DQGKRUWKDWV WKRXJK LW LV QRW LQ DOO FRQWH[WV LQWHUFKDQJHDEOH ZLWK HLWKHU /LNHG UWKLVV“Ž oGLUWKDWV GHQRWHV D SHUVRQ RU REMHFW WKDW LV SDUW RI RU UHOHYDQW WR WKH VSHHFK VLWXDWLRQ WKRXJK LW PD\ QRW DFWXDOO\ EH SUHVHQW $ SHUVRQ RU REMHFW PDUNHG VR LV DOZD\V VSHFL1F DQG UHIHUHQWLDO DQG NQRZQ WR ERWK VSHDNHU DQG KHDUHU ,W LV RIWHQ XVHG WR VSHFLI\ D SHUVRQ RU REMHFW WKDW KDV EHHQ WDONHG DERXW SUHYLRXVO\ ,I D FRQWUDVW LV WR EH PDGH EHWZHHQ FORVH WR WKH VSHDNHU DQG FORVH WR WKH KHDUHU“Ž oGLXVXDOO\ GHQRWHV SUR[LPLW\ WR WKH KHDUHU

7KH IROORZLQJ H[DPSOHV IURP D FRQYHUVDWLRQ RQ WKH SKRQH LOOXVWUDWH WKH XVH RI WKH GHPRQVWUDWLYHV :LQ LV LQ <DQJRQ $XQJ LQ 0DQGDOD\ DQG WKH\ WDON DERXW .\DZ ZKR LV LQ 7DXQJJ\L

WKLVDW YHU\ KRW1)87 WKDWDW ZKDWDERXW FRRO 34 U+HUH LWVV YHU\ KRW +RZ DERXW WKHUH ZKHUH \RX DUH" ,V LW FRRO"V

‚䊣~ށªŁfl äiŒßØi äyßmØæiÆŁ‚ìß ˆàâ‚ìß äŠŁyƒØyåçfl $XQJ P…“qEDE QæJi WDXQ8u

1(*FRRO ,032571(*

.\DZ 6%-

7DXQJJ\L DW

WKDW DW

FRRO 1)87

4827

U1R LWVV QRW FRRO .\DZ LV LQ 7DXQJJ\L WKHUH LWVV FRRO KH VD\VV

7KH XVH RI D GHPRQVWUDWLYH ZLWK QRXQV UHVWULFWV WKH LQWHUSUHWDWLRQ WR VLQJX ODU HYHQ WKRXJK EDUH QRXQV FDQ KDYH VLQJXODU RU SOXUDO UHIHUHQWV ,I SOXUDO UHDGLQJ LV LQWHQGHG ZLWK GHPRQVWUDWLYHV WKH SOXUDO PDUNHU ZH GZHRU D TXDQWL1HU VXFK DV D FODVVL1HU SKUDVH PXVW EH DGGHG

{Æ…ªäyº GL OX GZH UWKLV SHUVRQV UWKHVH SHRSOHV ˆàâ…ªäyº KR OX GZH UWKDW SHUVRQV UWKRVH SHRSOHV Šå{Æ…ªäyº “Ž oGL OX GZH UWKDW SHUVRQV UWKRVH SHRSOH ZH DUH

WDONLQJ DERXWV

{Ænߊâ~Øäyº GL VD“RX“ WZH UWKLV ERRNV UWKHVH ERRNVV ˆàânߊâ~Øäyº KR VD“RX“ WZH UWKDW ERRNV UWKRVH ERRNVV Šå{Ænߊâ~Øäyº “Ž oGL VD“RX“ WZH UWKDW ERRNV UWKRVH ERRNV ZH DUH

WDONLQJ DERXWV

7KH GHPRQVWUDWLYHV FDQ DOVR EH XVHG ZLWK FODVVL1HU SKUDVHV ZLWKRXW D KHDG QRXQ

{ÆynØäƒßiØ GL W…\DX“ UWKLV SHUVRQV ˆàâ‡âæŁŠâ~Ø KR ,zXQ“RX“ UWKRVH WKUHH ERRNVV Šå{ÆìnØäƒßiØ “Ž oGL KQ…\DX“ UWKRVH WZR SHRSOH ZH DUH WDONLQJ DERXWV

7KH GHPRQVWUDWLYHV FDQ EH SURQRPLQDOL]HG E\ DGGLQJ WKH QRPLQDOL]HUKD UWKLQJV ZKLFK PHUJHV ZLWKGLU KLVV LQGDUWKLV RQHV DQG ZLWK“Ž oGLUWKDWV LQ “Ž oGDUWKDW RQHV

7KH GHPRQVWUDWLYHV LQ /LWHUDU\ %XUPHVH DUH>LUWKL V“L UWKLVV“Ž o>LUWKDWV DQGW8RUWKDWV 7KH ODWWHU WZR FRUUHVSRQG LQ XVH WR WKH FROORTXLDO IRUPV“Ž oGL UWKDWV DQGKRUWKDWV UHVSHFWLYHO\

7ZR LQWHUURJDWLYHV FDQ EH DWWDFKHG WR QRXQV RU QRXQ SKUDVHV 7KH\ DUHED UZKDWV ZKLFK LV DOVR XVHG DV D SURQRXQ DQGEŽ UZKLFKV WKH JHQHUDO LQWHUURJ DWLYH PRUSKHPH ZKLFK LV DOVR XVHG WR IRUP DOO LQWHUURJDWLYH SURQRXQV DQG DGYHUELDOV ,W RFFXUV RQ LWV RZQ XVXDOO\ ZLWK WKH PHDQLQJ UZKHUHV 7KH IRU PHU LV D FRQWUDFWLRQ RIEŽKD UZKLFK WKLQJV ZKLFK LV IXOO\ OH[LFDOL]HG DV FDQ EH VHHQ IURP WKH GL3HUHQW IXQFWLRQV RI WKH WZR DV QRPLQDO PRGL1HUV

7KH LQWHUURJDWLYHEDUZKDWV LV XVHG WR DVN DERXW WKH NLQG RU VRUW RI UHIHUHQW RQH LV WDONLQJ DERXW ZKLOHEŽ UZKLFKV DVNV WR SLFN RQH LWHP RXW RI D NQRZQ VHW 7KHLU XVH LV VLPLODU WR WKH (QJOLVK HTXLYDOHQWV

ßˆmØŁ ƒª‚…åfl ED KuQ \XP…OŽ o ZKDW FXUU\ WDNH)87&4 U:KDW NLQG RI FXUU\ GR \RX ZDQW"V

ƒØˆmØŁ ƒª‚…åfl EŽ KuQ \XP…OŽ o ,17(5 FXUU\ WDNH)87&4 U:KLFK FXUU\ GR \RX ZDQW RXW RI WKH VHOHFWLRQ R3HUHG"V

,QGH1QLWH PRGL1HUV DUH IRUPHG E\ DGGLQJ S8Ž o EŽ o S8\L“S8\L“UMXVW WR EHWR EHV WR DQ LQWHUURJDWLYH H[SUHVVLRQ

ßˆmØŁînØînØ ED KuQ S8\L“S8\L“UDQ\ NLQG RI FXUU\V ƒØˆmØŁînØînØ EŽ KuQ S8\L“S8\L“ UDQ\ FXUU\ RI WKH VHOHFWLRQ R3HUHGV

,Q QHJDWHG FRQWH[W WKH LQWHUURJDWLYH PRGL1HUV OLNH RWKHU LQWHUURJDWLYHV KDYH WKH PHDQLQJ RI QHJDWLYH LQGH1QLWHV

ßiߣ‚ì ‚…߁ªŁfl ED NjKPi P…ODE ZKDW FDU5(675 1(*FRPH1(* U7KHUHVV QR NLQG RI FDU FRPLQJ DW DOOV

ƒØˆmØŁ‚ì ‚æiài؁ªŁfl EŽ KuQKPi P…QDL“S8 ,17(5 FXUU\5(675 1(*OLNH1(* U, GRQVW OLNH DQ\ RI WKHVH FXUULHVV

/LWHUDU\ %XUPHVH XVHV WKH LQWHUURJDWLYH PRGL1HUVEŽ UZKLFKV“…EŽ UZKLFKV DQGP\L>t UZKLFKV 1R GLVWLQFWLRQ LV PDGH LQ /LWHUDU\ %XUPHVH EHWZHHQ UZKDW NLQG RIV DQG UZKLFKV

təʨʰà ¶RWKHU• ¶DQRWKHU• 7KH QRWLRQ RI UDQRWKHUV PHDQLQJ UD GL3HUHQW RQHV LV H[SUHVVHG E\ SUHSRVHG W…Q8j URWKHUV ZKLFK DOVR RFFXUV DV D IUHH SURQRXQ ,W FDQ SUHFHGH D QRXQ RU D FODVVL1HU SKUDVH ,Q WKH ODWWHU FDVH LW PD\ DOWHUQDWLYHO\ EH WDNHQ DV D SURQRXQ UDWKHU WKDQ D PRGL1HU

{Æ‚â}Ø ‚æiài؁ªŁfl yîjߣ‚â}Ø ä~Ł~Þfl GL PyXQ P…QDL“S8 W…Q8j PR~Q SqED WKLV VQDFN 1(*OLNH1(* RWKHU VQDFN JLYH,03257 U, GRQVW OLNH WKLV VZHHWPHDW JLYH PH DQRWKHU GL3HUHQW RQHV

{Æ…ª Š‡âæŁ‚iŒªŁfl yîjߣynØäƒßiØ äjíjåçfl GL OX “…,zXQ P…QiE W…Q8j W…\DX“ N8æJŽ b WKLV SHUVRQ 10/XVH 1(*IDOO

1(* RWKHU RQH&/) FDOO

’,63/ U7KLV JX\ LV XVHOHVV FDOO LQ DQRWKHU RQHV

,Q /LWHUDU\ %XUPHVH URWKHUV LV“…Q8j ERWK DV SUHQRPLQDO PRGL1HU DQG DV D SURQRXQ

)RU UDQRWKHUV LQ WKH VHQVH RI UDQ DGGLWLRQDO RQHV %XUPHVH XVHVQDX“UEHKLQGV RUQDX“W8D“UEHKLQGSLOH XSV ZLWK HLWKHU D QRXQ RU ZLWK D FODVVL1HU SKUDVH 7KH IRUPVQDX“DQGQDX“W8D“FDQ LQGLFDWH UDQ DGGLWLRQDO RQH RI WKH VDPH RU GL3HUHQW NLQGV

ä}ßiØäiŒßmØŁ‡ßŁynØäƒßiØ QDX“ QjXQ>j W…\DX“ UDQRWKHU VWXGHQW RI WKH VDPH RU GL3HUHQW NLQGV äiŒßmØŁ‡ßŁä}ßiØynØäƒßiØ QjXQ>j QDX“ W…\DX“ ULGV ä}ßiØz~ØäiŒßmØŁ‡ßŁynØäƒßiØ QDX“W8D“ QjXQ>j W…\DX“ ULGV äiŒßmØŁ‡ßŁä}ßiØz~ØynØäƒßiØ QjXQ>D QDX“W8D“ W…\DX“ ULGV

,Q /LWHUDU\ %XUPHVH UDQRWKHUV LV H[SUHVVHG E\ WKH YHUEDO SKUDVH 8D“\Zp USXW RQ WRSV

Œ‚â}Ø nߣ–äißmØŁ‡sØfl z~Ø–ä~Ł~Þfl “L PR~Q Vj\Zp NjXQ>L W8D“\Zp SqED WKLV VQDFN HDW68% JRRG1)87 SLOHXS68% JLYH,03257 U7KLV VZHHWPHDW LV GHOLFLRXV JLYH PH RQH PRUH SOHDVHV

yi؇sØfl oiØ–yi؇sØfl z~Ø–yiØŽŁ‚sØfl WŽ“,L V8Ž“\Zp WŽ“,L W8D“\Zp WŽ““zXQP\L JRXS 1)87

FRQQHFW 6(4

JRXS 1)87

SLOHXS 6(4

JRXSIXUWKHU )87

U,W ZHQW XS DQG IXUWKHU XS DQG ZLOO JR IXUWKHU XSV

,Q VRPH FRQWH[WVW…Q8j URWKHUV DQGQDX“UDQRWKHUV DUH LQWHUFKDQJHDEOH DV WKH ODWWHU OHDYHV RSHQ ZKHWKHU RQH LV VSHDNLQJ RI WKH VDPH RU GL3HUHQW NLQG RI UHIHUHQW 2QO\ WKH FRQWH[W GHFLGHV ZKLFK UHDGLQJ LV LQWHQGHG 7KHUH LV DOVR RYHUODS EHWZHHQQDX“DQGQDX“W8D“ EXW QRW EHWZHHQW…Q8j DQGQDX“ W8D“

{Æ‚â}Ø æiàiØyƒØfl ä}ßiØynØjâ ä~Ł~Þfl GL PyXQ QDL“WŽ QDX“ W…N8~ SqED WKLV VQDFN OLNH1)87 EHKLQG RQH&/) JLYH,03257 U, OLNH WKLV VZHHWPHDW JLYH PH DQRWKHU RQH RQH PRUH RI WKH VDPHV

{Æ‚â}Ø ‚æiài؁ªŁfl ä}ßiØynØjâ ä~Ł~Þfl GL PyXQ P…QDL“S8 QDX“ W…N8~ SqED WKLV VQDFN 1(*OLNH1(* EHKLQG RQH&/) JLYH,03257 U, GRQVW OLNH WKLV VZHHWPHDW JLYH PH DQRWKHU RQH D GL3HUHQW RQHV

{Æ‚â}Ø æiàiØyƒØfl ä}ßiØz~Ø ynØjâ ä~Ł~Þfl GL PyXQ QDL“WŽ QDX“W8D“ W…N8~ SqED WKLV VQDFN OLNH1)87 DGGLWLRQDO RQH&/) JLYH,03257 U, OLNH WKLV VZHHWPHDW JLYH RQH PRUH RI WKH VDPHV

$V D SURQRXQW…Q8j FDQ RFFXU LQ DQ\ IXQFWLRQ LQ D FODXVH LQFOXGLQJ DGYHU ELDO

{Æ亂ìß î‚}Ø‚ßî~sØ ‚‡ºßŁªŁfl yîjߣ ‡ºßŁ‚ƒØfl GL QZHKPD P\DQPDS\L P…,ZjE W…Q8j ,ZjPŽ WKLV VXPPHUDW 0\DQPDUFRXQWU\ 1(*JR1(* RWKHU JR)87 U7KLV VXPPHU ,VP QRW JRLQJ WR 0\DQPDU ,VP JRLQJ VRPHZKHUH HOVHV

yîjߣ ß‚ì ‚ƒªªŁ…ߣfl W…Q8j EDKPi P…\XE Oj RWKHU ZKDW5(675 1(*WDNH1(* 34 U’RQVW \RX ZDQW DQ\WKLQJ HOVH"V

ßkªo}Øð‚à o—î~‚ yîjߣð‚àäyºiàâ iªŁniØàâmØfl S8DJXV8DQP\y V8DQGiS\iKP~ W…Q8j P\yGZHJR NVŽ“QDLQ )HUJXVRQFLW\ GHVLUHVKRZ10/ RWKHU FLW\3/2%- VSUHDGFDSDEOH U7KH GHPRQVWUDWLRQV LQ )HUJXVRQ FDQ VSUHDG WR RWKHU FLWLHVV

yîjߣßäyºäïißmØç înØàâmØ~Þ ä‡Ł‡…åfl W…Q8j EDGZH8iXQ S8\L“QDLQED>q>…OŽ o RWKHU ZKDW3/EHFDXVH EHFDSDEOH,03257\HW1)87&4 U:KDW RWKHU UHDVRQV FRXOG EH WKH FDXVH"V

yîjߣŠnà‚ØŁä„ßmØŠ„ºiØä…Ł‚ŒßŁ}å Š…ìomØ~Þfl W…Q8j “…VqLQ\DXQ “…\ZŽ“OqP\jQŽ b “…KOj V8LQED RWKHU JUHHQFRORU OHDI’,03/

ZLWK 10/SUHWW\ GHFRUDWH

,03257 U’HFRUDWH LW ZLWK RWKHU JUHHQ OHDYHVV

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

9HUEDODWWULEXWLYHV 9HUEV DV PRGL1HUV FDQ IROORZ WKH QRXQ 7KLV LV WKH FDVH PRVWO\ LQ 1[HG H[SUHVVLRQV ZKLFK FDQ EH VHHQ DV OH[LFDOL]HG ,Q WKLV FDVH WKH YHUE LV XVXDOO\ YRLFHG LQ DSSURSULDWH HQYLURQPHQWV

…ªoà⣠OX]z UEDG SHUVRQ FULPLQDO EDQGLWV

V8zUEH EDGV

…ªæiÆŁ OX8u UDGXOWV QuUEH ELJV

‡ßŁ…à‚×ß ,jOHLQPD UDWKH JRRG VRQV OHLQPDUEH JRRG ZHOO EHKDYHGV

iıåàâmØŁ QZŽ o\jLQ UZLOG EX3DORV \jLQ UEH ZLOG UXGHV omØî V8LQE\X UZKLWH HOHSKDQWVS8\XUEH ZKLWHV ä„䊣 \H“q UFROG ZDWHUV “q UEH FRRO FROGV

ä„jå \HJŽ o ULFHV N8Ž oUVROLGLI\ FRQJHDOV

9HUEV FDQ DOVR EH UHGXSOLFDWHG DQG SODFHG DIWHU WKH QRXQ VRPHWLPHV UHVXOW LQJ LQ VXEMHFWLYH GHVFULSWLRQV HPSKDVL]LQJ WKH VSHDNHUVV DWWLWXGH WRZDUGV WKH SURSHUW\ GHVFULEHG E\ WKH DWWULEXWLYH H[SUHVVLRQ ,Q PDQ\ FDVHV UHGXSOLFDWHG SURSHUW\ YHUEV MXVW LQGLFDWH WKH DWWULEXWLYH IXQFWLRQ

Šà‚ØæiÆŁæiÆŁ “HLQ Qu8u UDWKH UDWKHUYHU\ ELJ KRXVHV

QuUEH ELJV

UDWKH UDWKHUYHU\ JRRG ERRNV

NjXQUEH JRRGV

oæ~mØ„ìsØ„ìsØ V8…ELQ ïHïH UUDWKHUYHU\ ORQJ KDLUV

ïH UEH ORQJV

UDWKH ZKLWH ZKLWLVK VKLUWV

S8\XUEH ZKLWHV

7KH VXEMHFWLYLW\ FDQ EH UHLQIRUFHG E\ DGGLQJN8D“UU WKHUV EHIRUH WKH UHGX SOLFDWHG YHUE

Šà‚Øj~ØæiÆŁæiÆŁ “HLQ N8D“Qu8u UDWKH UDWKHU ELJ KRXVHV nߊâ~Øj~ØäißmØŁäißmØŁ VD“RX“

N8D“NjXQJjXQ UDWKH UDWKHU JRRG ERRNV

oæ~mØj~Ø„ìsØ„ìsØ V8…ELQ N8D“ïHïH UUDWKHU ORQJ KDLU ORQJLVK KDLUV

7KH PRVW UHJXODU DQG SURGXFWLYH QHXWUDO ZD\ WR IRUP DWWULEXWLYH H[SUHVVLRQV LV E\ DGGLQJ D UHODWLYH FODXVH EHIRUH WKH QRXQ ZKLFK KDV WKH IRUP 9WŽ b GŽ bIRU QRQIXWXUH SDVW RU SUHVHQW H[SUHVVLRQV RU 9PŽ b IRU H[SUHVVLRQV ZLWK IXWXUH UHIHUHQFH 5HODWLYH FODXVHV ZLOO EH GLVFXVVHG LQ GHWDLO LQ &KDSWHU

UDWKH JRRG ERRNV NjXQUEH JRRGV

UDWKH FOHYHU SHUVRQVQZjQ UEH FOHYHU VNLOOHGV

…ß‚ƒØç… ODPŽ b Oi UWKH FRPLQJ PRQWK QH[W PRQWKV

ODUFRPHV

,Q /LWHUDU\ %XUPHVH DWWULEXWLYHV KDYH WKH IRUP 9>t RU 9 >æoSUHFHGLQJ WKH QRXQ IRU QRQIXWXUH UHIHUHQFH DQGP\t IRU IXWXUH UHIHUHQFH

†}ØæiÆŁŽŁäoßmØä‡ßiàâƒØnߣ…ìƒØŠºåìmØç äyºoâæfl ZXQ8u “V8DXQ>z NR]…OŽ“…S8ZŽ bKQtQ WZpV8RXQ PLQLVWHU OHDG5(/ GHOHJDWHJURXSZLWK PHHW UPHHWLQJ ZLWK WKH GHOHJDWHV OHG E\ WKH PLQLVWHUV

…ª‚ä}„䇣ä‡ß…âæŁjŒmØŁŠà‚Ø ä„ßmØŁ‚sØfl OX P…QH\i>q>æo OzXQ8uQ “HLQ \jXQP\L SHUVRQ 1(*VWD\JHW\HW5(/ LQGLYLGXDO KRXVH VHOO)87 ULQGLYLGXDO KRXVH QRW SUHYLRXVO\ LQKDELWHG IRU VDOHV

ŠîmmØŁ~ºßŁ‚ìmØç~y؇i؇sØç oâæŁîyØjŒiØfl “…ÑuQSZjKP~KQtQ SD“,Ž“,t V8zXQS8\D“Q8Ž“ GLVSXWH10/ZLWK FRQFHUQHG1)87’(3 GHFLGH10/ UGHFLVLRQ UHJDUGLQJ WKH GLVSXWHV

ïisØs຃ØäißmØŁ‡sØç ‡Æ…„ìmØäiŒßmØŁ QŽÑREZŽNjXQ>t ,LOiïLQ8jXQ UHVSHFWJRRGIRU1)87’(3 QXQPRQDVWHU\ UD UHVSHFWDEOH QXQQHU\V

9HUEV PRGLI\LQJ QRXQV FDQ WKHPVHOYHV FDUU\ DQ REMHFW DQG SUHFHGH WKH QRXQ WKH\ PRGLI\ 7KHVH H[SUHVVLRQV DUH PRVWO\ 1[HG DQG FDQ EH FRQVLGHUHG OH[ LFDO LWHPV

UZULWHUV VDUWH[WV\q UZULWHVV8…\D UWHDFKHUV

UROG ZDWFKPDQVQ8DQUJDUGHQ FRPSRXQGV ViXQUZDLW ZDWFK RYHUV “…S8z8u UROG PDQV

UWDLORU VKRSV“uQ8LUVKLUWVQ8RX“UVHZV V8DLQUVKRSV

1RPLQDO HOHPHQWV FDQ IXQFWLRQ DV SRVWQRPLQDO RU SUHQRPLQDO PRGL1HUV 7KH VHPDQWLF UHODWLRQVKLS EHWZHHQ WKH PRGL1HU DQG WKH PRGL1HG QRXQ LV QRW H[SOLFLWO\ PDUNHG DQG GHSHQGV VROHO\ RQ WKH PHDQLQJ RI WKH LQYROYHG HOHPHQWV 7KLV LV HVSHFLDOO\ WKH FDVH ZLWK SUHQRPLQDO PRGLI\LQJ QRXQV DV VHHQ LQ WKH H[DPSOHV EHORZ

3RVWQRPLQDO DWWULEXWLYHV DUH XVXDOO\ QRPLQDOL]HG IRUPV RI YHUEV ZLWK WKH SUH1[“…

ä„ôŠnnØ ïZH “…VL“ UUHDO JROGV VL“UEH UHDOV Šà‚ØŠ‡nØ “HLQ “…,L“ UDWKH QHZ KRXVHV,L“ UEH QHZV iߣŠäˆßmØŁ Nj “…KjXQ UDQWKH ROG FDUVKjXQ UEH ROG XVHGV

7KLV SDWWHUQ LV VHPDQWLFDOO\ VLPLODU WR WKH SUHSRVHG UHODWLYH FRQVWUXFWLRQ DQG SDUWO\ RYHUODSV LQ XVH ZLWK WKH SRVWSRVHG UHGXSOLFDWHG YHUEV EXW XQOLNH WKHVH WKH QRPLQDOL]HG YHUEV DUH QHXWUDO LQ WHUPV RI VSHDNHUVV DWWLWXGH 8Q OLNH EDUH YHUEV IROORZLQJ QRXQV WKH QRPLQDOL]HG IRUPV DUH QRW UHVWULFWHG WR 1[HG H[SUHVVLRQV DQG DUH OHVV OH[LFDOL]HG 1RWLFH WKH GL3HUHQFH EHWZHHQ WKH IROORZLQJ H[SUHVVLRQV

Šà‚ØäˆßmØŁ “HLQKjXQ UWKH ROG KRPH SODFH RI RULJLQV Šà‚ØäˆßmØŁäˆßmØŁ “HLQ KjXQKjXQ UDWKH UDWKHUYHU\ ROG KRXVHV Šà‚ØŠäˆßmØŁ “HLQ “…KjXQ UDQWKH ROG KRXVHV äˆßmØŁyåçŠà‚Ø KjXQGŽ b “HLQ UDQWKH ROG KRXVHV

Šà‚Øî “HLQE\XGæ UWKH :KLWH +RXVHV ZLWK WKH UR\DO VX4[ Wæ Gæ Šà‚Øîî “HLQ S8\XE\X UDWKH ZKLWLVK KRXVHV Šà‚ØŠî “HLQ “…S8\X UDWKH ZKLWH KRXVHV îyåçŠà‚Ø S8\XGŽ b “HLQ UDWKH ZKLWH KRXVHV

2WKHU QRXQV SUHFHGH WKH QRXQ WKH\ PRG LI\ 7KH PRGL1HG QRXQ LV QRW DOZD\V YRLFHG LQGLFDWLQJ D ORRVH MXQFWXUH EHWZHHQ WKH HOHPHQWV LQ VRPH H[SUHV VLRQV 7KH YRLFLQJ LQ VRPH PRGL1HG QRXQV PD\ EH WDNHQ DV DQ LQGLFDWLRQ RI WKH VWDWXV RI WKH H[SUHVVLRQ DV D OH[LFDO FRPSRXQG UDWKHU WKDQ DV D SKUDVH 7KH PRGL1HG QRXQ FDQ EH D EDVLF QRXQ RU D GHULYHG IRUP

zàâmØŁŠnß W8jLQ“…VD U7KDL IRRGV W8jLQ U7KDLV “…VD UIRRGV IURPVj UHDWV

äjºŁŠnß N8Zq“…VD UGRJ IRRGV N8Zq UGRJV “…VD UIRRGV

‚º}Ønß PXQ]D U0RQ ZULWLQJVPXQ U0RQVVDUWH[WV â„ߣnmØ S8…\j]LQ U%XGGKD DOWDUVS8…\j UKRO\ REMHFWV

VLQUSODWIRUPV â}ØŁæiÆŁäiŒßmØŁ S8zXQ8u8jXQ UPRQDVWHU\V S8zXQ8LUPRQNV

QjXQ UVFKRRO PRQDVWHU\V

„àƒßyàâmØ “HUt\DWDLQ UWUDQVPLWWHU DQWHQQDV

“HUt\DUDUHDV WDLQUSLOODUV

†}ØæiÆŁuß} ZXQ8uW8DQi UPLQLVWU\V ZXQ8u UPLQLVWHUV W8DQiUSODFHV

$GYHUELDODWWULEXWLYHV $GYHUELDO H[SUHVVLRQV FDQ EH XVHG DV PRGL1HUV RI QRXQV 7KHVH DGYHUELDOV PD\ EH HLWKHU VLPSOH IRUPV RU FRPSOH[ SKUDVHV $GYHUELDO DWWULEXWLYHV DO ZD\V SUHFHGH WKH QRXQ WKH\ PRGLI\

oƒØìnØäŠßiØiä…Łäyº oƒØìnØäŠßiØ

V8ŽKQL““DX“ N8…OqGZH UFKLOGUHQ EHORZ WKH DJH RI V

V8ŽKQL““DX“ UEHORZ WHQ \HDUVV

iı}ØäyßØçäŠßiØsÆ iı}ØäyßØçäŠßiØ QHQæb“DX“ ÑL UP\ QH[W \RXQJHU

EURWKHUV Q…Qæ“DX“ UEHORZ PHV

‚ä}iäißmØ‚ä…Ł ‚ä}i P…QpJi NDXQPiOq UWKH JLUO IURP \HV

WHUGD\V P…QpJi U\HVWHUGD\V

„}Øiâ}ØiäißmØä…Ł „}Øiâ}Øi \DQJRXQJi NDXQOq UDWKH ER\ IURP

<DQJRQV \DQJRXQJi UIURP <DQ JRQV

~å„nØiyi¾‡àâ…Ø ~å„nØi

SŽ oUL“Ni WŽ“N…,R UDWKH XQLYHUVLW\ LQ 3DULVV

,Q /LWHUDU\ %XUPHVH ORFDWLYH DGYHUELDO DWWULEXWLYHV KDYH WKH IRUP /2&$7,21 ït ZKLFK SUHFHGHV WKH PRGL1HG QRXQ 7KH YHUEït PHDQV UH[LVW EH WKHUH EH DW D SODFHV

.DEXOFLW\ H[LVW

HPEDVV\R4FH LQIURQWLQ

ERPE H[SORGH 10/

RFFXU

UERPE H[SORVLRQ LQ IURQW RI WKH HPEDVV\ LQ .DEXOV

IHPDOHVWXGHQW PDOHVWXGHQW3/

IRU KRWHO VWDQGDUG H[LVW

KRVWHO 3/

RSHQ)87

U1HZ KRVWHOV IRU VWXGHQWV ZLWK KRWHO VWDQGDUGV ZLOO EH RSHQHGV

7KHUH DUH WZR ZD\V RI IRUPLQJ SRVVHVVLYHV LQ %XUPHVH 7KH 1UVW IXOO\ SUR GXFWLYH SDWWHUQ LV IRUPHG E\ SODFLQJ WKH SRVVHVVLYH PDUNHU\Ž b URIV EHWZHHQ WKH SRVVHVVRU DQG WKH SRVVHVVHG 7KH 1QDO V\OODEOH RI WKH SRVVHVVRU PD\ UHFHLYH WKH FUHDN\ WRQH EHIRUH WKH SRVVHVVLYH PDUNHU WKRXJK WKLV LV QRW REVHUYHG LQ DOO VSHDNHUV

o„ßç„åiߣ V8…\i\Ž b Nj UWKH WHDFKHUVV FDUV sÆ‚ä…Ł„凪mƒØjŒmØŁ ÑLPiOq\Ž b ,…ÔŽ8uQ UWKH OLWWOH VLVWHUVV IULHQGV ‚mØŁyàâ„åiànˆ PuQGy\Ž b NHL“Vi U\RXU D3DLUVV

7KH SRVVHVVLYH PDUNHU\Ž FDQ DOVR EH XVHG WR H[SUHVV QRQUHDO SRVVHVVLRQ ZLWK REMHFWV DV SRVVHVVRUV ,Q WKLV FDVH WKH QRXQV H[SUHVVLQJ WKH SRVVHV VRU DQG SRVVHVVHG FDQ DOVR EH VLPSO\ MX[WDSRVHG ZLWK QR REYLRXV GL3HU

HQFH LQ PHDQLQJ 7KH H[SUHVVLRQV ZLWKRXW WKH SRVVHVVLYH PDUNHU\Ž b FDQ EH VHHQ DV FRPSRXQGV WKRXJK WKH V\QWDFWLF DQG SKRQRORJLFDO HYLGHQFH LV QRW FRQFOXVLYH

{Æâ}ØŁ„å‚ì}Ø GL S8zXQ\Ž b KPDQ UWKH VFUHHQ RI WKLV SKRQHV

{Æâ}ØŁ‚ì}Ø GL S8zXQ KPDQ ULGV Šà‚Ø„åyæjÞŁ “HLQ\Ž b G…Jj UWKH GRRU RI WKH

P\Ž“KQD UWKH ODVW SDJH RI WKH ERRNV

ULGV

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

7KH JUDPPDWLFDO FUHDN\ WRQH PDUNV D GHSHQGHQFH RI WKH VRPDUNHG HOH PHQW RQ WKH IROORZLQJ DQG LV DOVR IRXQG LQ RWKHU FRQWH[WV VXFK DV VXERU GLQDWH FODXVHV DQG FRPELQHG QXPHUDOV 7KH DFFHSWHG QXPEHU RI SRVVHVVLYHV PDUNHG E\ FUHDN\ WRQH LQ RQH SKUDVH YDULHV DPRQJ VSHDNHUV DV GRHV WKH QXPEHU RI SRVVHVVLYH PDUNHUV \Ž b LQ D URZ 5HFXUVLYH SRVVHVVLRQ WKRXJK SRVVLEOH LV QRW XVXDOO\ IRXQG EH\RQG WZR RU WKUHH HOHPHQWV ,Q ORQJHU UH FXUVLYH SRVVHVVLYH H[SUHVVLRQV WKH SRVVHVVLYH PDUNHU\Ž b LV IUHTXHQWO\ DGGHG RQO\ WR WKH ODVW SRVVHVVRU LQ WKH URZ ZLWK WKH RWKHUV PDUNHG E\ FUHDN\ WRQH RU OHIW XQPDUNHG

iı}ØäyßØçŠä‚ç o„ßçŠà‚Ø Q…Qæb “…Pp V8…\i “HLQ 0’(3 PRWKHU’(3 WHDFKHU’(3 KRXVH UP\ PRWKHUVV WHDFKHUVV KRXVHV

iı}ØäyßØçŠä‚ç o„ßçŠä„åŠà‚Ø Ôi “…Pp V8…\i “…S8p\Ž b “HLQ )$0’(3 PRWKHU’(3 WHDFKHU’(3 IDWKHU’(33266 KRXVH UWKH KRXVH RI P\ PRWKHUVV WHDFKHUVV IDWKHUV

,Q /LWHUDU\ %XUPHVH WKH SRVVHVVLYH PDUNHU LV “t ZKLFK RFFXUV DIWHU WKH SRVVHVVRU

iı}Øäyß؇Šä‚ Q…Qæ“t …Pt UP\ PRWKHUV o„߇Šà‚Ø V8…\D“t “HLQ UWKH WHDFKHUVV KRXVHV

3RVWQRPLQDO PDUNHUV DUH HOHPHQWV SODFHG DIWHU WKH QRXQ RU H[WHQGHG QRXQ SKUDVH WR LQGLFDWH GL3HUHQW UHODWLRQV 7KH SRVWQRPLQDO PDUNHUV FDQ EH GL YLGHG LQWR WKUHH FDWHJRULHV QDPHO\ FDVH PDUNHUV ORFDWLRQ PDUNHUV DQG JHQ HUDO SRVWSRVLWLRQV 7KH\ GL3HU LQ WKHLU IRUP DQG V\QWDFWLF EHKDYLRU

7KH FDVH PDUNHUV DUH JUDPPDWLFDO HOHPHQWV WKDW H[SUHVV V\QWDFWLF DQG VH PDQWLF UHODWLRQV 7KH\ DUH DWWDFKHG WR QRXQV SURQRXQV RU H[WHQGHG QRXQ SKUDVHV 7KH 1UVW WKUHH FDQ DOVR GLUHFWO\ EH DWWDFKHG WR WKH GHPRQVWUDWLYHV GLUWKLVVKRUWKDWV DQG“Ž oGLUWKDWV DQG WR WKH LQWHUURJDWLYHEŽ UZKLFKV WR IRUP DGYHUELDO ORFDWLYH H[SUHVVLRQV &DVH PDUNHUV DUH VLPSOH PRUSKHPHV RI RQH V\OODEOH DQG WKH\ FDQQRW EH OLQNHG WR OH[LFDO ZRUGV

ká gá ¶IURP 68%-(&7• 7KLV PDUNHU KDV WZR EDVLF IXQFWLRQV GHSHQGLQJ RQ WKH VHPDQWLFV RI WKH QRXQ LW RFFXUV ZLWK :LWK QRXQV GHQRWLQJ D FRQYHQWLRQDOL]HG ORFDWLRQNi Ji LQGL FDWHV WKH VRXUFH RI D PRYHPHQW WKDW LV DQ DEODWLYH UHODWLRQ ,Q WKLV IXQFWLRQ Ni Ji LV ODEHOHG UIURPV 7KH DEODWLYH PDUNHU DOVR RFFXUV LQ WKH H[WHQGHG IRUP NiQH JiQH ZLWK QR GL3HUHQFH LQ PHDQLQJ LQ PRVW FRQWH[WV H[FHSW WKDW WKH H[WHQGHG IRUP LV PRUH VSHFL1F RU HPSKDWLF 7KH PDUNHUNi Ji LQ WK DEOD WLYH IXQFWLRQ LV REOLJDWRU\ DQG FDQQRW EH GURSSHG ,Q FDVXDO VSHHFK Ni Ji LV RIWHQ ZHDNHQHG WR >¨@ ZLWKRXW LQLWLDO FRQVRQDQW

‡ª „}Øiâ}Øi …ßyƒØfl ,X \DQJRQJi ODGŽ <DQJRQIURP FRPH1)87 U+H FDPH IURP <DQJRQV

Šà‚Øi zºiØ…àâ‚„ªŁ…ߣfl “HLQJi W8ZŽ“Oy P…\iE Oj KRXVHIURP H[LW68% 1(*JHW1(* 34 U&DQVW ZH JR RXW RI WKH KRXVH"V

,Q VRPH FRQWH[WV Ni Ji LV XVHG WR PDUN ORFDWLYH UDWKHU WKDQ DEODWLYH UHOD WLRQ 7KLV LV WKH FDVH HVSHFLDOO\ ZKHQ PRUH WKDQ RQH ORFDWLYHV DUH XVHG LQ HPEHGGHG FRQVWUXFWLRQV

„}Øiâ}ØiˆàâyƒØ‚ìß sØç‡sØ‚ŒßŁyƒØfl \DQJRXQJi KRWŽKPD “Ž b>Ž P\jGŽ <DQJRQIURP KRWHODW JXHVW PDQ\1)87 U7KHUH ZHUH PDQ\ JXHVWV LQ WKH KRWHO LQ <DQJRQV

7KH FDVH PDUNHU Ni Ji FDQ LQ VRPH FRQWH[WV EH XVHG ZLWK QRQORFDWLRQV WR LQGLFDWH WKH VRXUFH 6RPH VSHDNHUV SUHIHU WR DGG D ORFDWLRQ PDUNHU LQ PRVW FRQWH[WV WKRXJK VHH VHFWLRQ

{Ænߊâ~Øi Š‡à~sßäyº„yƒØfl GL VD“RX“Ni “…,tS\LQÑDGZH \iGŽ WKLV ERRNIURP NQRZOHGJHZLVGRP3/ JHW1)87 U, JHW NQRZOHGJH IURP WKLV ERRNV

iߣä~íi~nˆsØŁ ƒªjåçfl NjEæJi S\L“Vu \XJŽ b FDUDERYHIURP WKLQJ WDNH’,63/ U%ULQJ WKH VWX3 IURP WKH FDUV

:LWK WHPSRUDO H[SUHVVLRQV WKH PDUNHU Ni Ji LQGLFDWHV D SRLQW LQ WKH SDVW WUDQVODWDEOH LQ VRPH FRQWH[WV DV UDJRV RU UODVWV EXW IUHTXHQWO\ QRW UHQGHUHG LQ (QJOLVK 7KLV IXQFWLRQ FDQ EH VHHQ DV H[WHQVLRQ RI WKH DEODWLYH DQG WKH ODEHO UIURPV LV UHWDLQHG LQ WKLV XVH 7KH PDUNHU Ni Ji LQ WKH WHPSRUDO IXQFWLRQ FDQQRW EH GURSSHG LQ PRVW FRQWH[WV ,W DOVR RFFXUV LQ WKH H[WHQGHG IRUP WzXQJi GzXQJi ZLWK QR REYLRXV GL3HUHQFH LQ PHDQLQJ 7KH H[WHQGHG IRUP

NiQH JiQH ZLWK WHPSRUDO H[SUHVVLRQV GRHV QRW LQGLFDWH D SRLQW LQ WKH SDVW EXW UDWKHU WKH VWDUWLQJ SRLQW RI D VLWXDWLRQ

nä}ä}i V…QHQpJi UODVW 6DWXUGD\V nä}ä}iä} V…QHQpJiQH UVLQFHIURP 6DWXUGD\V

,Q VRPH H[SUHVVLRQV Ni Ji LV VHHQ DV SDUW RI D OH[LFDOL]HG IRUP DV LQP…QpJi U\HVWHUGD\V 7KH IRUP P…Qp QHYHU RFFXUV RQ LWV RZQ EXW Ni Ji FDQ EH VHS DUDWHG E\ RWKHU WHPSRUDO HOHPHQWV DV LQP…QpÑiJi UODVW QLJKWV OLWHUDOO\ U\HVWHUGD\ QLJKW IURPV

ˆàâynØä}i KR W…QpJi UWKH RWKHU GD\ EDFN WKHQV WKDW RQHGD\IURP

ð~ÆŁjåçyåç…i SuJŽ bGŽ b OiJi UODVW PRQWKV 1QLVKHG’,63/1)87’(3 PRRQIURP

:KHQ XVHG ZLWK RWKHU QRXQV ERWK DQLPDWH DQG LQDQLPDWH Ni Ji LQGLFDWHV WKH VXEMHFW RI WKH FODXVH ODEHOHG DV UVXEMHFWV ,Q WKLV IXQFWLRQ Ni Ji LV QRW REOLJDWRU\ EXW GHSHQGV RQ GLVFRXUVH VWUXFWXUDO IDFWRUV 7KLV PDNHV LW GL3HU HQW IURP D QRPLQDWLYH FDVH PDUNHU DV IRXQG LQ VRPH ODQJXDJHV 7KH PDUNHU LV DGGHG RQO\ RQFH LQ D QRXQ SKUDVH DOZD\V DW WKH YHU\ HQG WKDW LV DIWHU SRVWQRPLQDO PRGL1HUV DQG FODVVL1HU SKUDVHV $GGLQJ WKH VXEMHFW PDUNHU PDUNV WKH VXEMHFW DV FRQWUDVWLYH IRUHJURXQGHG RU JHQHUDOO\ HPSKDWLF DV VLJQLQJ LW VSHFLDO VLJQL1FDQFH LQ WKH XWWHUDQFH $SDUW IURP PDUNLQJ D VXEMHFW DV FRQWUDVWLYH Ni Ji FDQ DOVR EH XVHG WR H[SOLFLWO\ GLVWLQJXLVK WKH VXEMHFW IURP WKH REMHFW LI DPELJXLW\ PD\ DULVH 2WKHU IDFWRUV VXFK DV QRQYHUEDO SUHGLFDWHV GRXEOHVXEMHFWV DQG GLVWDQFH RI WKH VXEMHFW WR WKH YHUE PD\ DOVR SOD\ D UROH EXW WKHUH DUH QR 1[HG JUDPPDWLFDO UXOHV GHWHUPLQLQJ WKH RFFXUUHQFH RU QRQRFFXUUHQFH RI WKH PDUNHU Ni Ji

äjºŁiä…ŁiäïißmØiä…ŁiàâiØyƒØfl N8ZqLJ…OqNi QDXQJ…Oq NDL“WŽ GRJ’,06%- FDW’,0 ELWH1)87 U7KH OLWWOH GRJ ELW WKH OLWWOH FDWV

‡ymØŁäyºi zºiØ…ßyƒØfl ,…GuQGZHJi W8ZŽ“ ODGŽ QHZV3/6%- H[LW FRPH1)87 U7KH QHZV FDPH RXWV

iı}Ø‚†i ŠmØ‚y}ØoàâŁyƒØfl Q…Pi E…ZiJi “LQP…WDQ V8zGŽ ) OLIH6%- H[WUHPHO\ EDG1)87 U0\ OLIH ZDV UHDOO\ EDGV

{ÆäißmØi Šj}ØŁä‡ßçfl GL NDXQJi “…N8jQ,æb WKLV &/)6%- URRPNH\ U7KLV RQH LV WKH URRP NH\V

‡ªi Šäî~ßäißmØŁyƒØfl ,XJi “…S\æo NjXQGŽ 6%- 10/VSHDN JRRG1)87 U+LV ZD\ RI WDONLQJ LV JRRGV +HVV D 1QH VSHDNHU

,Q /LWHUDU\ %XUPHVH WKH DEODWLYH IXQFWLRQ LV H[SUHVVHG E\ KPi

„}Øiâ}Ø‚ì …ß‡sØfl \DQJRQKPi OD>L <DQJRQIURP FRPH1)87 U+H FDPH IURP <DQJRQV

)RU WKH WHPSRUDO IXQFWLRQ /LWHUDU\ %XUPHVH XVHV Ni Ji OLNH &ROORTXLDO %XUPHVH )RU WKH PDUNLQJ RI VXEMHFW /LWHUDU\ %XUPHVH XVHV >L

äçn؁ºy؇sØ €Æ{ƃàâ…àâmØŁ‡àâ äî~ßmØŁ…å‡ºßŁàâm؇sØfl S8pERX“,L ELGL\ROjLQ>y S\jXQOŽ o>ZjQDLQ>L )DFHERRN6%- YLGHROLQHWR FKDQJHJRFDSDEOH1)87 U)DFHERRN PD\ EH WXUQHG LQWR D YLGHR FKDQQHOV

)RU WKH PDUNLQJ RI VXEMHFW /LWHUDU\ %XUPHVH XVHV >LEHVLGHV NiJi ‡ymØŁ‚ŒßŁ‡sØ ä~ízºi؅߇sØfl ,…GuQP\j>L SæW8ZŽ“OD>L QHZV3/6%- DSSHDUH[LWFRPH1)87 U7KH QHZV FDPH RXWV

ko go ¶WR 2%-(&7• 7KLV PDUNHU OLNH Ni Ji KDV WZR PDLQ IXQFWLRQV :KHQ DWWDFKHG WR QRXQV RU QRXQ SKUDVHV GHQRWLQJ ORFDWLRQV LW LQGLFDWHV WKH PRYHPHQW WRZDUGV WKH OR FDWLRQ WKDW LV LW KDV $OODWLYH IXQFWLRQ ,Q WKLV XVH WKH PDUNHU LV KHUH ODEHOHG DV UWRV 8QOLNH Ni Ji NR JRLQ WKLV IXQFWLRQ LV QRW REOLJDWRU\ DQG LV IUHTXHQWO\ GURSSHG LQ FDVXDO VSHHFK HVSHFLDOO\ ZLWK FRQYHQWLRQDOL]HG ORFDWLRQV

‡ª „}Øiâ}Øiàâ ‡ºßŁ‚ƒØfl ,X \DQJRXQJR ,ZjPŽ <DQJRQWR JR)87 U+H ZLOO JR WR <DQJRQV

{Æä} ‚kü…ßänŒŁiàâ ‚‡ºßŁªŁfl GL Qp PLQJ…OD]qJR P…,ZjE WKLV GD\ 0LQJDODPDUNHWWR 1(*JR1(* U,VP QRW JRLQJ WR 0LQJDOD 0DUNHW WRGD\V

/LNH Ni Ji UIURPV WKH PDUNHU R JR UWRV FDQ EH XVHG LQ VRPH FRQWH[WV ZLWK QRQORFDWLRQV WR H[SUHVV DOODWLYH PHDQLQJ )RU VRPH VSHDNHUV DQ DGGLWLRQDO ORFDWLRQ PDUNHU LV SUHIHUUHG

ˆàââ~ØyâoÆiàâ‡ºßŁfl KR \RXW~]LJR ,Zj WKDW VWDWXH/2&WR JR U*R RYHU WR WKDW VWDWXHV

iߣoÆiàâ‡ºßŁfl Nj]LJR ,Zj FDU/2&WR JR U*R WR WKH FDUV

,Q VRPH FRQWH[WV NR JR FDQ EH XVHG DV ’LVWULEXWLYH PDUNHU WUDQVODWDEOH DV USHUV 7KH JORVV UWRV LV UHWDLQHG IRU WKLV IXQFWLRQ

ynØ…iàâ ìn؇à}ØŁä…ßiØ„yƒØfl W…OiJR KQ…,qLQODX“ \iGŽ RQHPRRQWR WZRKXQGUHGWKRXVDQGDVPXFKDV JHW1)87 U, JHW DERXW WZR KXQGUHG WKRXVDQG SHU PRQWKV

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

’LUHFW REMHFWV DUH PDUNHG E\ NR JR LI WKH\ DUH

3HUVRQDO SURQRXQV

1RXQV UHIHUULQJ WR VSHFL1F SHRSOH QDPHV NLQVKLS SURIHVVLRQDO DQG VRFLDO WHUPV

7RSLFDO VSHFL1F KLJKO\ UHIHUHQWLDO

(PSKDWLF FRQWUDVWLYH

7R EH GLVWLQJXLVKHG IURP WKH VXEMHFW

7KH PDUNHU NR JR FDQ VRPHWLPHV EH GURSSHG ZLWK SHUVRQDO SURQRXQV DQG QRXQV UHIHUULQJ WR VSHFL1F SHRSOH RFFXUULQJ DV GLUHFW REMHFWV LQ FDVXDO VSHHFK LQ VRPH FDVHV OHDYLQJ WKH FUHDN\ WRQH DV D WUDFH LQ RWKHUV OHDYLQJ WKH REMHFW XQPDUNHG

‡ªiàâ ‡à…ߣfl ,~JR ,t Oj ’(32%- NQRZ 34 U’R \RX NQRZ KHU"V

o„߆}Øiàâ äyºjåçyƒØfl V8…\DZXQJR WZpJŽ bGŽ GRFWRU2%- PHHW’,63/1)87 U, PHW WKH GRFWRU WKHUHV

{Æiߣiàâ~å ïisØ炃Øfl GL NjJR EŽ o QtPŽ WKLV PRYLH2%- (;&/ ORRN)87 U:H DUH MXVW JRLQJ WR ZDWFK WKLV PRYLHV

äïißmØiä…Łiàâ äjºŁiä…ŁiàâiØyƒØfl QDXQJ…OqJR N8ZqJ…Oq NDL“WŽ FDW’,02%- GRJ’,0 ELWH1)87 U7KH OLWWOH GRJ ELW WKH OLWWOH FDWV

,I WKH PDUNHU NR JRLV XVHG ZLWK D FRQYHQWLRQDOL]HG ORFDWLRQ LW PD\ IXQFWLRQ HLWKHU DV DOODWLYH RU DV REMHFW PDUNHU GHSHQGLQJ RQ WKH VHPDQWLFV RI WKH YHUE

‚˛ä…Łiàâ ‡ºßŁ‚ƒØfl PjQG…OqJR ,ZjPŽ 0DQGDOD\WR JR)87 U, ZLOO JR WR 0DQGDOD\V

‚˛ä…Łiàâ ‚æiài؁ªŁfi PjQG…OqJR P…QDL“S8 0DQGDOD\2%- 1(*OLNH1(* U, GRQVW OLNH 0DQGDOD\V

,QGLUHFW REMHFWV DUH W\SLFDOO\ KXPDQ RU KLJK DQLPDWH 7KH\ DUH UHFLSLHQWV RU H[SHULHQFHUV RI GLWUDQVLWLYH FODXVHV $V VXFK WKH\ DUH UHJXODUO\ PDUNHG E\ NR JR 7KH PDUNHU FDQ VRPHWLPHV EH GURSSHG LQ FDVXDO VSHHFK LQ VRPH FDVHV OHDYLQJ WKH FUHDN\ WRQH DV D WUDFH LQ RWKHUV OHDYLQJ WKH LQGLUHFW REMHFW XQPDUNHG

‡ª‚ŒßŁiàâ {ÆŠäïißmØŁ ‚äî~ß}åfl ,XP\jJR GL “…QjXQ P…S\æoQŽ b RWKHUSHRSOH2%- WKLV PDWWHU 1(*VSHDN352+ U’RQVW WHOO RWKHU SHRSOH DERXW WKLVV

1)87’(3 JLIW3/ ZKR’(3

2%- JLYH )87&4

U:KR DUH \RX JRLQJ WR JLYH WKH SUHVHQWV \RX ERXJKW"V

)RU PRVW VSHDNHUV QR PRUH WKDQ RQH FODXVH PD\ EH PDUNHG DV REMHFW E\ NR JR LQ RQH FODXVH 7KLV PHDQV WKDW LQ GLWUDQVLWLYH FODXVHV ZLWK ERWK GLUHFW DQG LQGLUHFW REMHFWV RYHUWO\ H[SUHVVHG RQO\ WKH LQGLUHFW REMHFW FDQ QRUPDOO\ EH PDUNHG

ˆàâ~}ØŁ‡ÆŁiàâ ä~Ł~Þfl KR SjQ>uJR SqED WKDW DSSOH2%- JLYH,03257 U*LYH PH WKDW DSSOHV

iı}Ø‚iàâ ä~Ł~Þfl Q…PiJR SqED )2%- JLYH,03257 U*LYH LW WR PHV

ˆàâ~}ØŁ‡ÆŁ iı}Ø‚iàâ ä~Ł~Þfl KR SjQ>u Q…PiJR SqED WKDW DSSOH )2%- JLYH,03257 U*LYH PH WKDW DSSOHV

,Q /LWHUDU\ %XUPHVH WKH DOODWLYH IXQFWLRQ LV H[SUHVVHG E\ ,y >y

„}Øiâ}؇àâ ‡ºßŁ‚sØfl \DQJRQ>y ,ZjP\L <DQJRQWR JR)87 U+H ZLOO JR WR <DQJRQV

)RU WKH PDUNLQJ RI REMHFW /LWHUDU\ %XUPHVH XVHV WZR GL3HUHQW PDUN HUV NR JR LV PDLQO\ XVHG WR PDUN GLUHFW REMHFWV ZKLOH “j PDUNV LQGLUHFW REMHFWV VXFK DV UHFLSLHQWV RI GLWUDQVLWLYH FRQVWUXFWLRQV

Šä‚‡sØ Œnߊâ~Øià⠇ߣŠßŁä~Ł‡sØfl “…PH>L “L VD“RX“NR ,j“j Sq>L PRWKHU6%- WKLV ERRN2%- VRQ2%- JLYH1)87 U7KH PRWKHU JDYH WKLV ERRN WR WKH VRQV

hma ¶DW• 7KH ORFDWLYH PDUNHU KPDLV DWWDFKHG WR QRXQV GHQRWLQJ ORFDWLRQV DQG REMHFWV WKDW FDQ EH FRQFHLYHG DV ORFDWLRQV ,W FDQ EH WUDQVODWHG DV UDW LQ RQ E\ HWFV $ GLDOHFWDO YDULDQW HVSHFLDOO\ LQ UXUDO 8SSHU 0\DQPDU LV PŽ 7KH DVSLUD WLRQ LV VRPHWLPHV GURSSHG LQ YRLFHG FRQWH[WV DQG WKH PDUNHU SURQRXQFHG DV >PD@

Šà‚Ø‚ìß ƒØ‡ª„ìà…åfl “HLQKPD EŽ>X ït OŽ o KRXVHDW ZKR H[LVW &4 U:KR LV DW KRPH"V

‡ªyàâ‡‚ÆŁ àâmØmæîjߣ‚ìßä}yƒØfl ,XGy ,…Pu QDLQÔDQ8jKPD QHGŽ $663/ GDXJKWHU FRXQWU\RWKHUDW VWD\1)87 U7KHLU GDXJKWHU OLYHV DEURDGV

ƒØoàâmØ‚ìß nߣ‚…åfl EŽV8DLQKPD VjP…OŽ o ,17(5VKRSDW HDW)87&4 U,Q ZKLFK UHVWDXUDQW DUH ZH JRLQJ WR HDW"V

‚mØŁâ}ØŁ‚ìß ~àâiØoæ„ìà…ߣfl PuQ S8zXQKPD SDL“V8DQ ït Oj )$0 SKRQHDW PRQH\ H[LVW 34 U’R \RX KDYH PRQH\ LQ \RXU SKRQH"V

0XOWLSOH HPEHGGHG ORFDWLYHV XVXDOO\ DOORZ RQO\ RQH RFFXUUHQFH RI KPD ZKLFK PDUNV WKH PRVW VSHFL1F DQG VXSHURUGLQDWH ORFDWLRQ 7KH RWKHU ORFD WLRQV DUH PDUNHG E\ Ni Ji RU OHIW XQPDUNHG

~àâiØoæi Šä~íz~ØŠà~Øj}ØŁzåi nߣ~ºåä~íi ä‡y˛ ßzå‚ìß„ìàyƒØfl SDL“V8DQJi “…SæW8D“ “HL“N8jQGŽ oJi ]…EZŽ oEæJi PRQH\6%- DERYHVWRUH\ VOHHSURRPLQVLGHIURP WDEOHDERYHIURP

U7KH PRQH\ LV LQ WKH ER[ RQ WKH WDEOH LQ WKH EHGURRP XSVWDLUVV :LWK QRQORFDWLRQV KPD UDWV FDQ EH XVHG LQ VRPH FRQWH[WV 6RPH VSHDNHUV SUHIHU WR DGG D ORFDWLRQ PDUNHU LQ PRVW FRQWH[WV WKRXJK

ŠàyØäyº iߣä~í‚ìß iŒ}ØjåçyƒØfl “HL“WZH NjEæKPD QDQJŽ bGŽ EDJ3/ FDUDERYHDW OHDYH’,63/1)87 U7KH EDJV ZHUH OHIW LQ WKH FDUV

:LWK WHPSRUDO H[SUHVVLRQV KPD L XVHG WR GHVFULEH JHQHUDO UHFXUULQJ RU IXWXUH VLWXDWLRQV

‚yØ…‚ìß î‚}Ø‚ßî~s؇ºßŁ‚ƒØfl PD“OiKPD P\DQPDS\L ,ZjPŽ 0DUFKPRRQDW 0\DQPDUODQG JR)87 U,Q 0DUFK , ZLOO JR WR 0\DQPDUV

y}kü亂ìß Š…â~؇‚ߣŠ‚ŒßŁnâ Š…â~Ø‚…â~؁ªŁfl W…QuQJ…QZHKPD “…ORX“,…Pj “…P\j]~ “…ORX“ P…ORX“S8 6XQGD\DW ZRUNHU PDMRULW\ ZRUN 1(*GR1(* U0RVW ZRUNHUV GRQVW ZRUN RQ 6XQGD\VV

$WWDFKHG WR SHUVRQDO UHIHUHQWV KPD LV XVHG WRJHWKHU ZLWK WKH H[LVWHQWLDO YHUEït UH[LVW WKHUH LVV WR H[SUHVV SUHGLFDWLYH SRVVHVVLRQ 7KH ODVW V\OODEOH RI WKH SRVVHVVRU UHFHLYHV FUHDN\ WRQH ZKHUH DSSOLFDEOH

iı}ØäyßØç‚ìß ~àâiØoæ‚„ìàäyß灪Łfl Q…QæbKPD SDL“V8DQ P…ïtGæbE 0’(3DW PRQH\ 1(*H[LVW&21751(* U, GRQVW KDYH DQ\ PRQH\ DQ\PRUHV

‡ª‡ªmƒØjŒmØŁ‚ìß iߣ䅣nÆŁ„ìàyƒØfl ,~ ,…ÔŽ8uQKPD Nj Oq]u ïtGŽ ’(3 IULHQGDW FDU IRXU&/) H[LVW1)87 U+LV IULHQG KDV IRXU FDUVV

,Q /LWHUDU\ %XUPHVH WKH ORFDWLYH DQG WHPSRUDO IXQFWLRQ LV H[SUHVVHG E\ KPD KQDL“ WZLQ GZLQ RU ZŽ 7KH GL3HUHQFH EHWZHHQ WKH IRXU IRUPV LV RQH RI VW\OH UDWKHU WKDQ IXQFWLRQ RU PHDQLQJ

„}Øiâ}Ø° ä}‡sØfl \DQJRQKQDL“ QH>L <DQJRQDW VWD\1)87 U+H OLYHV LQ <DQJRQV

)RU PXOWLSOH HPEHGGHG ORFDWLRQV /LWHUDU\ %XUPHVH XVHV D VLPLODU SDW WHUQ DV &ROORTXLDO %XUPHVH ZLWK RQO\ RQH ORFDWLYH PDUNHU RQ WKH ODVW ORFDWLRQ 7KH PDUNHU ZŽ LV PRUH IRUPDO DQG RFFXUV PRVWO\ ZLWK DEVWUDFW H[SUHVVLRQV

~àâiØoæ‡sØ Šä~íz~ØŠà~Øj}ØŁzå„ìànߣ~ºåä~í‚ì ä‡y˛ ßzå‚ìß°yºmØ „ìà‡sØfl SDL“V8DQ>L “…SæW8D“ “HL“N8jQGŽ oït PRQH\6%- DERYHVWRUH\ VOHHSURRPLQVLGHH[LVW

]…EZŽ oEæKPi ,L“WDGŽ oKPD KQDL“ GZLQ ït>L WDEOHDERYHIURP ER[LQVLGHDW H[LVW1)87 U7KH PRQH\ LV LQ WKH ER[ RQ WDEOH LQ WKH EHGURRP XSVWDLUVV

)RU WKH SRVVHVVLYH IXQFWLRQ /LWHUDU\ %XUPHVH XVHV KPD ït ZLWK S UVRQDO UHIHUHQWV OLNH FROORTXLDO %XUPHVH

nɛ́ ¶ZLWK• 7KH PDUNHU QŽ bH[SUHVVHV LQVWUXPHQWDO DQG FRPLWDWLYH IXQFWLRQV ,W FDQ XVX DOO\ EH WUDQVODWHG DV UZLWKV VRPHWLPHV DV UE\V

…iØ}å nߣyƒØfl OŽ“QŽ b VjGŽ KDQGZLWK HDW1)87 U+H HDWV ZLWK KLV KDQGVV

„zߣ}å …ßyƒØfl \…W8jQŽ b ODGŽ WUDLQZLWK FRPH1)87 U6KH FDPH E\ WUDLQV

‡ªmƒØjŒmØŁ}å Æƒßä‡ßiØä}yƒØfl ,…ÔŽ8uQQŽ b EL\D ,DX“QHWŽ IULHQGZLWK EHHU GULQNVWD\1)87 U+H LV GULQNLQJ EHHU ZLWK KLV IULHQGVV

ßˆmØŁ}å nߣ‚…åfl ED KuQQŽ b VjP…OŽ o ZKDW FXUU\ZLWK HDW)87&4 U:KDW FXUU\ DUH \RX JRLQJ WR HDW ZLWK WKH ULFH"V OLWHUDOO\ U:LWK ZKDW FXUU\ DUH \RX JRLQJ WR HDW"V

7KH PDUNHU QŽ bLV DOVR DGGHG WR DGYHUELDO H[SUHVVLRQV QRW QHFHVVDULO\ ZLWK LQVWUXPHQWDO RU FRPLWDWLYH PHDQLQJ

,Q /LWHUDU\ %XUPHVH WKH &RPLWDWLYH DQG ,QVWUXPHQWDO IXQFWLRQ LV H[SUHVVHG E\ KQtQ

„zߣìmØç…߇sØ \…W8jKQtQ OD>L U7KH\ FDPH E\ WUDLQV ŠàâßŁ‚ߣìmØçäyº‚sØ “REjPjKQtQ WZpP\L U6KH ZLOO PHHW ZLWK

2EDPDV

)RU WKH ,QVWUXPHQWDO IXQFWLRQ /LWHUDU\ %XUPHVH XVHV DOVR S8\tQ

yɛ́ ¶RI • 7KH SRVVHVVLYH PDUNHU \Ž b URIV XVXDOO\ WULJJHUV WKH FUHDN\ WRQH RQ WKH ODVW V\OODEOH RI WKH SRVVHVVRU DQG LV XVHG LQWHUFKDQJHDEO\ ZLWK WKH FUHDN\ WRQH RU ]HUR PDUNLQJ $ GHWDLOHG GHVFULSWLRQ LV JLYHQ LQ

ʨáun ʥáun ¶EHFDXVHRI • 7KH FDXVDO PDUNHU LV DWWDFKHG WR D QRXQ H[SUHVVLRQ WKH FDXVH RI D VLWXDWLRQ ,W WULJJHUV WKH FUHDN\ WRQH RQ WKH SUHFHGLQJ QRXQ &RPPRQ YDULDQWV LQ &RO ORTXLDO %XUPHVH DUH QiXQPy 8iXQPy RU QiXQPyOy 8iXQPyOy ZLWKPy DQGOyERWK PHDQLQJ UEHFDXVH RIV

oâæŁæŁ‚äïißmØç ‡ª{âi¿ä„ßiØyƒØfl V8zXQïzXQKP~8iXQ ,X GRX“N8i \DX“WŽ HQGORVH10/EHFDXVH VX3HULQJ DUULYH1)87 U6KH VX3HUV EHFDXVH RI WKH ORVVV

iı}ØäyßØçäïißmØç ‡ªnàyØoàâŁyƒØfl Q…Qæb8iXQ ,X VHL“V8zGŽ 0’(3EHFDXVH KHDUWEDG1)87 U+H LV DQJU\ EHFDXVH RI PHV

Šà‚ØnßäïißmØç mÞ{Æä}‚ŠßŁªŁfl “HLQ]D8iXQ ÔD GL Qp P…“jE KRPHZRUNEHFDXVH )$0 WKLV GD\ 1(*IUHH1(* U,VP QRW IUHH WRGD\ EHFDXVH RI P\ KRPHZRUNV

pʰó bó ¶IRUWKHVDNHRI• iı}ØäyßØçà⠁߂ì‚~ށªŁ…ߣfl Q…QæbEy EDKPi P…SDE Oj 0’(3IRU ZKDW5(675 1(*LQFOXGH1(* 34 U,V WKHUH QRWKLQJ IRU PH"V

snßàâ ˆmØŁ‡ÆŁˆmØŁ„ºiØäyº †ƒØ„ŽŁ‚ƒØfl Ñi]DEy KuQ>uKuQ\ZŽ“GZH ZŽ\i“zXQPŽ GLQQHUIRU YHJHWDEOHV3/EX\JHWIXUWKHU)87 U:H DOVR KDYH WR EX\ YHJHWDEOHV IRU GLQQHUV

/RFDWLRQPDUNHUV /RFDWLRQ PDUNHUV DOVR FDOOHG UHODWLRQDO QRXQV DUH QRPLQDO RU DGYHUELDO HO HPHQWV WKDW RFFXU DIWHU QRXQV RU QRXQ SKUDVHV WR LQGLFDWH D ORFDWLRQ PRUH

VSHFL1FDOO\ WKDQ WKH FDVH PDUNHUV DORQH 7KH ORFDWLRQ PDUNHUV DUH REOLJDWR ULO\ XVHG LI QRXQV QRW GHQRWLQJ FRQYHQWLRQDOL]HG ORFDWLRQV DUH XVHG LQ ORFD WLYH FRQVWUXFWLRQV 8QOLNH FDVH PDUNHUV WKH\ GR QRW QRUPDOO\ RFFXU DORQH EXW DUH DFFRPSDQLHG E\ RQH RI WKH FDVH PDUNHUV Ni Ji UI RPV NR JRUWRV RU KPD UDWV WR GHQRWH PRYHPHQW WR RU VWDWLRQDU\ SRVLWLRQ DW WKH GHVFULEHG OR FDWLRQ $V LQ RWKHU FRQWH[WV WKRXJK WKH DOODWLYH PDUNHU NR JR LV IUHTXHQWO\ GURSSHG DIWHU ORFDWLRQ PDUNHUV $OO EXW RQH RI WKH ORFDWLRQ PDUNHUV FDQ EH XVHG ZLWKRXW D SUHFHGLQJ QRXQ SKUDVH IRUPLQJ DQ DGYHUELDO H[SUHVVLRQ ZLWK WKH DFFRPSDQ\LQJ FDVH PDUNHU 0RVW ORFDWLRQ PDUNHUV FDQ WDNH WKH SUH1[ “… 7KH SUH1[HG IRUP LV XVHG ZKHQ QR QRXQ LV RYHUWO\ H[SUHVVHG WR IRUP DGYHUELDOV RU IRU HPSKDVLV ZLWK SUHFHGLQJ QRXQV :KHQ ORFDWLRQ PDUNHUV DUH XVHG ZLWK QRXQV GHVFULELQJ SHUVRQDO UHIHUHQWV WKH ODVW V\OODEOH RI WKH QRXQ UHFHLYHV WKH FUHDN\ WRQH ZKHUH DSSOLFDEOH

sʰi zi ¶QHDU E\ DW• 7KLV PDUNHU LV XVHG LQ ORFDWLYH H[SUHVVLRQV ZLWK QRXQV QRW UHIHUULQJ WR OR FDWLRQV ,W LV HVSHFLDOO\ FRPPRQ ZLWK KXPDQ RU KLJK DQLPDWH UHIHUHQWV EXW QRW UHVWULFWHG WR WKHVH 8QOLNH WKH RWKHU ORFDWLRQ PDUNHUV V8L ]L LV QRW XVHG WR IRUP DGYHUELDO H[SUHVVLRQV EXW LV DOZD\V DWWDFKHG WR D QRXQ 7KLV LV SURE DEO\ GXH WR WKH XQGHUVSHFL1HG QDWXUH RI LWV VHPDQWLFV )RU VRPH VSHDNHUV WKLV PDUNHU LV DOZD\V XQYRLFHG

Šä‚çoÆi ~àâiØoæäyßmØŁyƒØfl “…Pp]LJi SDL“V8DQ WjXQGŽ PRWKHU’(3/2&IURP PRQH\ DVNIRU1)87 U, DVNHG 0RWKHU IRU PRQH\V

‡ªmƒØjŒmØŁoÆiàâ ‡ºßŁ‚ƒØfl ,…ÔŽ8uQ]LJR ,ZjPŽ IULHQG/2&WR JR)87 U,VP JRLQJ WR P\ IULHQGVVV

‡ªi ‡ª„sØŁnߣoÆ‚ìßä}jŒmØyƒØfl ,XJi ,~ \u]j]LKPD QH8LQGŽ 6%- ’(3 ORYHU/2&DW VWD\ZDQW1)87 U+H ZDQWV WR VWD\ DW KLV JLUOIULHQGVVV

nß}ƒØpmØŁäyºoÆ ‡ymØŁ~àâjŒmØ~àâ‚ìßä~Þçfl VDQŽ]uQGZH]L ,…GuQ Sy8LQ SyKPD Eæb ZULWWHQPHGLD3//2& QHZV VHQGZDQW VHQG)8710/ ,16,67 U7KH\ PD\ VHQG WKH QHZV WR WKH SDSHUVV

1RWH WKH GL3HUHQFH EHWZHHQ SHUVRQDO UHIHUHQWV ZLWK FDVH PDUNHUV ZLWK DQG ZLWKRXW WKH ORFDWLRQ PDUNHU V8L ]L

Šä‚i…ßyƒØfl Šä‚çoÆi…ßyƒØfl “…PHJi ODGŽ U0RWKHU FDPHV“…Pp]LJi ODGŽ U+H FDPH IURP 0RWKHUV

Šä‚çiàâäî~ß~Þfl Šä‚çoÆiàâ‡ºßŁ~Þfl “…PpJR S\æoED U7HOO 0RWKHUV“…Pp]LJR ,ZjED U*R WR 0RWKHUV

Šä‚ç‚ìß„ìàyƒØfl Šä‚çoÆ‚ìß„ìàyƒØfl “…PpKPD ïtGŽ U0RWKHU KDV LWV“…Pp]LKPD ïtGŽ U7KHUHVV RQH

DW 0RWKHUVVV

,Q /LWHUDU\ %XUPHVH WKH JHQHUDO ORFDWLRQ PDUNHU LV 8D

Šä‚çzæ‚ì ~àâiØoæäyßmØŁ‡sØfl “…PpW8DQKPi SDLV8DQ WjXQ>L PRWKHU/2&IURP PRQH\ DVNIRU1)87 U+H DVNHG 0RWKHU IRU PRQH\V

niàâmØŁ}iØzæ‚ì ŠiŒàŁŠî‚yØä†nâ yàâŁäyßmØŁ‚sØfl V…NDLQQŽ“W8DQKPi “…Qz“…P\D“ZH]~ WzWjXQP\L 6N\QHW/2&IURP SUR1WDOORWPHQW SXVKDVNIRU)87 U:H DUH JRLQJ WR DVN IRU PRUH EHQH1WV IURP 6N\QHW VKDUHVV

i¾zæ‚ì Š‚ìßnßä~Ł~àâ “RX“N…W8iW8DQKPi “…KPD]D SqSy FKDLUPDQ/2&IURP PHPRUDQGXP JLYHVHQG UPHPRUDQGXP VHQW E\ WKH FKDLUPDQV

nà ¶QHDU• 7KLV PDUNHU LQGLFDWHV D ORFDWLRQ QHDU DQ REMHFW RU VSDFH

Šà‚Ø}ߣ‚ìß änŒŁoàâmØ‚„ìàªŁfl “HLQQjKPD ]q]DLQ P…ïtEX KRXVHQHDUDW PDUNHWVKRS 1(*H[LVW1(* U7KHUH DUH QR VKRSV QHDU RXU KRXVHV

Sæ Eæ¶RQ DERYH• 7KLV PDUNHU LQGLFDWHG WKH SRVLWLRQ RQ WRS RI RU DERYH WKH UHIHUHQW :LWKRXW DQ DFFRPSDQ\LQJ QRXQ LW LV XVHG WR IRUP DGYHUELDO SKUDVHV VHHVHFWLRQ (VSHFLDOO\ LQ WKH VHQVH UDERYHV WKH SUH1[HG IRUP“…Sæ LV SUH H UHG E\ VRPH VSHDNHUV

nߣ~ºåä~í‚ìß ymØ~Þfl ]…EZŽ oEæKPD Q8iED WDEOHDERYHDW SXWGRZQ,03257 U3XW LW RQ WKH WDEOHV

nߣ~ºåŠä~í‚ìß ‚ÆŁŠà‚ØjŒàyØzߣyƒØfl ]…EZŽ o“…SæKPD Pu“HLQ Q8HL“W8jGŽ WDEOHDERYHDW ODPS KDQJNHHS1)87 U$ ODPS LV KDQJLQJ RYHU WKH WDEOHV

Šà‚Øä~íiàâ yiØ…àâiØfl “HLQEæJR WŽ“ODL“ KRXVHDERYHWR JRXSIROORZ U-XVW JR XSVWDLUVV

äißmØŁimØä~íi iŒ…ßyƒØfl NjXQJLQEæJi QiODGŽ VN\DERYHIURP IDOOFRPH1)87 U,W IHOO IURP WKH VN\V

7KH IROORZLQJ H[DPSOHV DUH LQ OLWHUDU\ VW\OH

2QOLQHä~í ämº„ìßä‡ßäiŒßmØŁ‡ßŁ “XQOjLQEæ ÔZH ïD>æo QjXQ>j RQOLQHDERYH VLOYHU VHHN5(/ VWXGHQW UVWXGHQW WU\LQJ WR HDUQ PRQH\ RQOLQHV

…ߣŁð‚àä~í‚ì ‚ªŁƒnØäoŁ†ÞŁä~íymØ ‡âæŁnºå‚ OjïzP\yEæKPD P\L“V8qZj SæWLQ ,RQVZŽ oKP~ /DVKLRFLW\DERYHDW LQWR[LFDWHGGUXJ RSHQO\ XVH10/ URSHQ GUXJ DEXVH LQ /DVKLRV

Šäîjjænߣiâ}ØŠä~í Šî‚yØymØä„ßmØŁjŒ‚ “…Q8HJDQVjNRXQ“…Sæ “…P\D“ WLQ\jXQQ8iKP~ EDVLFHDWJRRGVDERYH SUR1W SXWRQVHOOSXWGRZQ10/ UVHOOLQJ EDVLF FRQVXPHU JRRGV ZLWK SUR1WV

7KH PDUNHU Sæ EæKDV D QXPEHU RI DEVWUDFW PHDQLQJV DOO RI ZKLFK DUH VH PDQWLFDOO\ GHULYDEOH IURP WKH RULJLQDO IXQFWLRQ WR YDU\LQJ GHJUHHV ,Q VRPH FRQWH[WV WKH SUH1[HG IRUP“…Sæ LV SUHIHUUHG 7KH FDVH PDUNHUV XVXDOO\ KPD DUH IUHTXHQWO\ GURSSHG LQ DEVWUDFW H[SUHVVLRQV

„߇ƍyâäî~ßmØŁ…å‚Šä~í i}ØiºiØîjmØŁ \D>L“~G~ S\jXQOŽ oKP~“…Sæ NiQNZŽ“Q8uQ ZHDWKHU FKDQJH10/DERYH REMHFW10/ UREMHFWLRQ UHJDUGLQJ WKH FOLPDWH FKDQJHV

DERYH D3DLUWDNH 10/

GD\

UWKH GD\ RI WDNLQJ DFWLRQ DJDLQVW WKRVH ZKR FRPPLWWHG FULPHVV

,6 ŠºåŠä~í ä}ßiØz~Øä…äïißmØŁyàâiØjàâiØ‚äyº “DLQ“ŽV“…S8ZŽ b“…Sæ QDX“W8D“ OH8jXQ WDL“N8DL“KP~GZH ,6JURXSDERYH EHKLQGSLOHXS DLUOLQH VWULNH10/3/ UPRUH DLU VWULNHV DJDLQVW WKH ,6V

…Æiº‚؃âŠä~í î‚}Ø‚ß‚ŒßŁŠî‚mØ OLNXDQ\~“…Sæ P\DQPDP\j “…P\LQ /HH.XDQ<HZDERYH 0\DQPDU3/ 10/VHH URSLQLRQV RI WKH %XUPHVH DERXW /HH .XDQ <HZV

iı}Ø‚Šä~í‚ìß ŠiàâìnØäƒßiØ„ìàyƒØfl Q…Pi“…SæKPD “…NR KQ…\DX“ ïtGŽ )DERYHDW ROGHUEURWKHU WZR&/) H[LVW1)87 U, KDYH WZR ROGHU EURWKHUVV OLW U7KHUH DUH WZR ROGHU EURWKHUV DERYH PHV

‡ªi iı}ØäyßØçŠä~í‚ìÆjàâyƒØfl ,XJi Q…Qæb“…Sæ KPLN8RGŽ 6%- P’(3DERYH UHO\1)87 U+H UHOLHV RQ PHV

Š‚ŒàŁ‡‚ÆŁäyºŠä~í„ìmØç‡äßzߣiàâ äî~ß~Þfl “…P\z>…PuGZH“…Sæ ïtQ >…EæoGjJR S\æoED ZRPDQ3/DERYH ’(3 DWWLWXGH2%- VSHDN,03257 U7HOO PH \RXU DWWLWXGH WRZDUGV ZRPHQV

‡ª …àâmØŁä~í‚ìß „ìàyƒØfl ,X OjLQEæKPD ïtGŽ OLQHDERYHDW H[LVW1)87 U6KHVV RQOLQHV

‚mØŁ này؆mØnߣ‚ä~í ‚ªysØyƒØfl PtQ VHL“ZLQ]jKP~Eæ PXWLGŽ )$0’(3 LQWHUHVWHG10/DERYH GHSHQG1)87 U,W GHSHQGV RQ \RXU LQWHUHVWVV

ʔauʔ ¶XQGHU EHORZ EHQHDWK• 8QOLNH WKH RWKHU ORFDWLRQ PDUNHUV “DX“ GRHV QRW RFFXU ZLWK WKH SUH1[ “… 7R IRUP DGYHUELDO H[SUHVVLRQV LW FDQ EH FRPELQHG GLUHFWO\ ZLWK WKH UHVSHFWLYH FDVH PDUNHUV

äjºŁäyº ‡nØ~mØäŠßiØ‚ìß Šà~Øä}yƒØfl N8ZHGZH ,L“SLQ“DX“KPD “HL“ QHGŽ GRJ3/ WUHHEHORZDW VOHHS VWD\1)87 U7KH GRJV DUH VOHHSLQJ XQGHU WKH WUHHV

ŠoàâäyßØ nmØäŠßiØiàâ omØŁ…ßjåçyƒØfl “…V8RGæ VLQ“DX“NR V8uQODJŽ bGŽ VLQJHU SODWIRUPEHORZWR JRGRZQFRPH’,63/1)87 U7KH VLQJHU FDPH GRZQ IURP WKH VWDJHV

~mØ…ƒØäŠßiØi yiØ…ßyƒØfl SLQOŽ“DX“Ni WŽ“ODGŽ VHDEHORZIURP JRXSFRPH1)87 U,W HPHUJHG IURP WKH VHDV

7KH PDUNHU “DX“ DOVR KDV DEVWUDFW PHDQLQJV ZKLFK DUH PRUH RU OHVV FOHDUO\ GHULYHG IURP WKH OLWHUDO UHDGLQJ UEHORZ XQGHUV

ð€àyà‡ł Šâ~ØjŒ~Ø‚äŠßiØ‚ìßä}jåç„yƒØfl E\tWtïi “RX“Q8RX“KP~“DX“KPD QHJŽ b\iGŽ %ULWLVK UXOH10/EHORZDWVWD\’,63/JHW1)87 U7KH\ KDG WR OLYH XQGHU %ULWLVK UXOHV

E PRWKHU6%- IDWKHU’(3 ZRUG3/

EHORZDW KHDG ERZ1(*DFFHSW

DEOH1(* U0RWKHU FDQQRW ERZ KHU KHDG XQGHU )DWKHUVV ZRUGV ZLWKRXW REMHFWLRQV

y„ߣ„à~ØäŠßiØ jàâ…æyƒØfl W…\j\HL““DX“ N8RKORXQGŽ ODZVKDGRZEHORZ WDNHUHIXJH1)87 U+H WRRN UHIXJH XQGHU WKH VKDGRZ RI WKH ODZV

ä„ôäqŁ “‡à}ØŁäŠßiØ ‚iŒàâmØfl ïZH]q Q8DX“,qLQ“DX“ P…QiQDLQ JROGPDUNHW VL[KXQGUHGWKRVDQGEHORZ 1(*IDOOFDSDEOH U7KH JROG SULFH FDQQRW IDOO EHORZ VL[ KXQGUHG WKRXVDQG .\DWV

tʰɛ ̀ dɛ̀ ¶LQVLGH ZLWKLQ• 7KLV PDUNHU GHQRWHV WKH SRVLWLRQ LQVLGH DQ REMHFW HLWKHU FRQFUHWH RU LPDJ LQHG :KHQ XVHG ZLWK FRQYHQWLRQDOL]HG ORFDWLRQV VXFK DV FRXQWULHV FLWLHV RU YLOODJHV W8Ž o GŽ oLV XVHG WR VSHFLI\ WKH SRVLWLRQ ZLWKLQ WKH VHW ERXQGDULHV 7KH FRQWH[WV LQ ZKLFK W8Ž o GŽ oLV XVHG FDQ EH PRUH RU OHVV DEVWUDFW

{Ænߊâ~Øzåi ~âæî~mØynØ~â{Øä…ßiØ äî~ßî~~Þfl GL VD“RX“W8Ž oJi SRXQE\LQ G…ERX“ODX“ S\æoS\iED WKLV ERRNLQVLGH

IURP VWRU\ RQH&/)

DVPXFKDV VSHDNVKRZ ,03257

U3OHDVH WHOO PH D VWRU\ RXW RI WKLV ERRNV

‚mØŁnàyØzå‚ìß ßäyº„ìà…åfl PtQ VHL“W8Ž oKPD EDGZH ït OŽ o )$0’(3 KHDUWLQVLGHDW ZKDW3/ H[LVW &4 U:KDWVV RQ \RXU PLQG"V

{Æiànˆzå‚ìß iı}Øäyß؆mØ‚~ÞjŒm؁ªŁfl GL NHL“ViGŽ oKPD Q…Qæ ZLQP…SD8LQE WKLV D3DLULQVLGHDW 0 HQWHU1(*LQFOXGHZDQW1(* U, GRQVW ZDQW WR EH LQYROYHG LQ WKLV D3DLUV

{Æ„ºßzå‚ìß Š‚iØ‚~nØ„ªŁfl GL \ZDGŽ oKPD “…KPDL“ P…S\L“\iE WKLV YLOODJHLQVLGHDW JDUEDJH 1(*WKURZJHW1(* U<RX FDQVW WKURZ DZD\ JDUEDJH LQ WKLV YLOODJHV

iº}Ø~Œyßzåiàâ €àâmØŁ„~Øäyº†mØ…ßyåçŠjÞ NXQS\XWDGŽ oJR EjLQUD“WZH ZLQODGŽ b “…N8D FRPSXWHULQWR YLUXV3/ HQWHUFRPH1)87’(3 WLPH UZKHQ YLUXVHV HQWHU FRPSXWHUVV

nº}Ø~nØŠà‚ØäˆßmØŁzå |ßyØ~âæ†mØàâiØ V~QS\L“ “HLQKjXQGŽ o GD“SRXQ ZLQ\DL“ DEDQGRQ KRXVHROGLQ SKRWRJUDSK HQWHUKLW UHQWHULQJ DQ ROG DEDQGRQHG KRXVH DQG WDNLQJ SLFWXUHVV

7KH PDUNHU S\LQ E\LQURXWVLGH RXW RIV GHQRWHV WKH SRVLWLRQ RXWVLGH D FRQ FUHWH RU FRQFHSWXDO VSDFH

nÆŁi„iØäyºŠà‚Øî~mØ‚ìß~å ä‡ßiØ…àâ„yƒØfl V8qOHL“WZH “HLQE\LQKPD EŽ o ,DX“Oy\iGŽ FLJDUHWWH3/ KRXVHRXWVLGHDW (;&/ GULQN68%JHW1)87 U<RX PD\ VPRNH RQO\ RXWVLGHV

nä}ä} ð‚àî~mØiàâ‡ºßŁ‚ƒØfl V…QHQp P\yE\LQJR ,ZjPŽ 6DWXUGD\ FLW\RXWVLGHWR JR)87 U, ZLOO JR RXW RI WRZQ WR WKH VXEXUEV RQ 6DWXUGD\V

7KLV PDUNHU FDQ DOVR EH XVHG LQ PRUH DEVWUDFW H[SUHVVLRQV PHDQLQJ UEH VLGHV DSDUW IURPV ,Q WKLV IXQFWLRQ WKH SUH1[HG IRUP“…S\LQ LV QRUPDOO\ XVHG

„߇Æä~í‡ÆŁìæäyºŠî~mØ ~}ØŁ‡ÆŁ…sØŁ„ìàyƒØfl \D>L Sæ ,uKQDQGZH“…S\LQ SjQ>u OŽ o ïtGŽ VHDVRQ DSSHDU IUXLW3/RXWVLGH DSSOH DOVR H[LVW1)87 U$SDUW IURP VHDVRQDO IUXLWV WKHUHVV DOVR DSSOHVV

î‚}Ø‚ßnߊî~mØ ‚º}Ønß…sØŁ„ìàyƒØfl P\DQPD]D“…S\LQ PXQ]D OŽ o ïtGŽ 0\DQPDUWH[WRXWVLGH 0RQWH[W DOVR H[LVW1)87 U%HVLGHV %XUPHVH ZULWLQJ WKHUH ZDV DOVR 0RQ ZULWLQJV

Š‚Ø~ÆyÆŠî~mØ ŠîjߣäŠßØ~ä„yßäyº ‡âæŁ‚ƒØfl “DPSLWL“…S\LQ “…Q8j “æS…UHWDGZH ,zXQPŽ 037RXWVLGH RWKHU RSHUDWRU3/ XVH)87 U2WKHU FHOO SKRQH RSHUDWRUV EHVLGHV WKH 037 ZLOO EH XVHGV

iàâ„ÆŁƒßŁiߣäyºŠî~mØ yîjߣŠß„ìiߣäyº î‚}Ø‚ßnßy}ØŁzàâŁ}å ïisØçàâmØ‚ƒØfl NRUu\jNjGZH “…S\LQ

.RUHD1OP3/ RXWVLGH

RWKHU $VLD 1OP3/

0\DQPDU VXEWLWOHVZLWK

ORRN FDSDEOH)87

U%HVLGHV .RUHDQ 1OPV ZH ZLOO EH DEOH WR ZDWFK RWKHU $VLDQ PRYLHV ZLWK %XUPHVH VXEWLWOHVV

7KH IROORZLQJ H[DPSOH LV IURP /LWHUDU\ %XUPHVH

{xØämºŠî~mØ ~ä{Š„Šä„Łƒª‚sØfl GDQÔZH“…S\LQ “~S…GH“…\i “…\q \XP\L SXQLVKPHQWPRQH\RXWVLGH ODZ10/JHW D3DLU WDNH)87 U%HVLGHV LPSRVLQJ D 1QH DFWLRQ ZLOO EH WDNHQ DFFRUGLQJ WR WKH ODZV

ɕé ¶LQIURQW• 7KLV PDUNHU GHQRWHV D SRVLWLRQ LQ IURQW RI DQ REMHFW RU SHUVRQ

Šà‚Øä„ìi ‡nØ~mØäyºŠiâ}Ø jâyØ…àâiØyƒØfl “HLQïpJi ,L“SLQGZH “…NRXQ N8RX“ODL“WŽ KRXVHLQIURQWIURP WUHH3/ DOO FKRSIROORZ1)87 U+H FXW GRZQ DOO WKH WUHHV LQ IURQW RI WKH KRXVHV

…ªæiÆŁä„ì‚ìß {Æ…àâniߣ ‚äî~߇mØ灪Łfl OX8uïpKPD GLOR ]…Jj P…S\æo>tQE DGXOWLQIURQWDW WKLVDV ODQJXDJH 1(*VSHDNDSSURSULDWH1(* U2QH VKRXOG QRW VSHDN OLNH WKLV LQ IURQW RI DGXOWVV

‡ªi â„ߣä„ì‚ìß iyàä~ŁzߣyƒØfl ,XJi S8…\jïpKPD J…GtSqW8jGŽ 6%- KRO\LQIURQWDW SURPLVHJLYHNHHS1)87 U+H SURPLVHG LQ IURQW RI WKH %XGGKDV

7KH IROORZLQJ H[DPSOHV DUH QHZVSDSHU KHDGOLQHV LQ /LWHUDU\ %XUPHVH

~„à‡yØä„ì‚ìß ŠäißmØŁoâæŁ äŒßØäîjåç S…UHL“,D“ïpKPD “…NjXQ]zXQ S8\æS8\HJŽ b DXGLHQFHLQIURQWDW JRRGPRVW HQWHUWDLQ’,63/ UKLV EHVW SHUIRUPDQFH LQ IURQW RI WKH DXGLHQFHV

ð‚àäyßØj}ØŁ‚ä„ì‚ìß …ªäyºänßmØçïisØçä} P\yGæ N8jQPiïpKPD OXGZH ViXQQtQH FLW\52< KDOOLQIURQWDW SHUVRQ3/ ZDLWORRNVWD\ U3HRSOH ZDLWLQJ WR VHH WKH RXWFRPH LQ IURQW RI WKH FLW\ KDOOV

nauʔ ¶EHKLQG• 7KH PDUNHU QDX“LQGLFDWHV WKH SRVLWLRQ EHKLQG DQ REMHFW RU SHUVRQ

iı}ØäyßØçä}ßiØ ‚…àâiØ}åfl Q…QæbQDX“ P…ODL“QŽ b 0’(3EHKLQG 1(*IROORZ352+ U’RQVW IROORZ PHV

ERG\ OLNH 1)87’(3

SKRWRJUDSK EHKLQGDW

1OH3/ 2%/

KLGHNHHS 1)87’(3

PHWKRG

UPHWKRGV WR KLGH 1OHV EHKLQG WKH SKRWRV \RX OLNHV

zàâmØjŒmØ„mØ ä}ßiØi…iØ}å ‚~âyØ~Þ}åfl W8DLQ8LQ\LQ QDX“Ni OŽ“QŽ b P…SRX“SDQŽ b VLWZDQWLI EHKLQGIURP KDQGZLWK 1(*VWURNH,03257352+ U,I \RX ZDQW WR VLW GRQVW WDS PH IURP EHKLQG ZLWK \RXU KDQGV

…àâŠ~ØjŒiØiyà⣅ßyƒØfl äzßiØ~æç‚i ä}ßiØi‚…àâiØàâm؁ªŁfl OR“D“ Q8Ž“Ni

QHHG 10/6%/

SXVKFRPH 1)87

VXSSRUW 10/6%-

EHKLQG IURP

1(*IROORZ FDSDEOH1(*

U1HHGV LQFUHDVH EXW VXSSRUW FDQQRW IROORZV

bè ¶VLGH• 7KH QRXQEqUVLGHV LV XVHG DV ORFDWLRQDO PDUNHU ZLWK WKH PHDQLQJ UE\ EHVLGH DW WKH VLGHV

Šiàâ 䁣iàâïisØçzߣ iŒä}ßØ ä}ßiØoâyØ‚ƒØfl “…NR EqJR QtW8j Q…Qæ QDX“V8RX“PŽ ROGHUEURWKHU VLGHWR ORRNNHHS 0 EHKLQGSXOOEDFN)87 U%URWKHU \RX ZDWFK RQ WKH VLGH ,VOO UHYHUVH WKH FDUV

䁣i ŠàâŁæiÆŁyäƒßiØi EqJi “…S8z8u W…\DX“Ni VLGHIURP ROGPDQ RQH&/)6%- UDQ ROG PDQ QH[W WR PHV

‡ßŁ‡ßŁ Šä‚ç䁣‚ìß …ßzàâmØ ,j,j “…PpEqKPD ODW8DLQ VRQ)$0 PRWKHU’(3VLGHDW FRPHVLW U&RPH VLW QH[W WR 0RPP\ VRQV

䁣‚ìß äißØÆä…ŁynØjºiØ„ìà„mØ äiŒ}~Ø~ÞyƒØfl EqKPD NæS8LOq W…N8ZŽ“ ït\LQ QHQD“SDGŽ VLGHDW FR3HH’,0 RQHFXS H[VLVWLI FRQWHQW,032571)87 U,I , KDYH D FXS RI FR3HH QH[W WR PH ,VP KDSS\V

ä„iªŁi}Ø䁣‚ìß ªäŁ„àyØyØiàâ î‚}Øî‚}Ønߣfl \HNJDQEqKPD EXS8qE…UHL“S8D“NR P\DQP\DQ Vj ZDWHUFURVVSRQGVLGHDW EX3HWEUHDNIDVW2%- IDVWIDVW HDW U(DW D EX3HW EUHDNIDVW TXLFNO\ EHVLGHV WKH VZLPPLQJ SRROV

ʥà ¶EHWZHHQ DPRQJ• 7KHUH LV QR GLVWLQFWLRQ LQ %XUPHVH EHWZHHQ WKH QRWLRQV UEHWZHHQV DQG UDPRQJV ERWK EHLQJ H[SUHVVHG E\ 8j 7KH PHDQLQJ FDQ EH HLWKHU FRQFUHWH RU DEVWUDFW 7KLV PDUNHU LV DOZD\V YRLFHG LQ WKH FRPPRQ QRQSUH1[HG IRUP ,W LV PRVW FRPPRQO\ IRXQG ZLWK WKH ORFDWLYH FDVH PDUNHU KPD UDWV 7KU H PDLQ SDWWHUQV DUH IRXQG

$ QŽ b% 8j UEHWZHHQ $ DQG % DPRQJ $ DQG %V 1 &/)8j UEHWZHHQ WZR 1 DPRQJ WZR 1V DQG 13/180 &/) 8j UDPRQJ 1 EHWZHHQ 1V ,Q WKH

ODWWHU FDVH WKH QRXQ DOZD\V KDV LPSOLFLW SOXUDO UHIHUHQFH ZLWKRXW WKH SOXUDO EHLQJ QHFHVVDULO\ RYHUWO\ PDUNHG

‡ª~â}Øäyº}å ƒªi„à}ØŁŠnà⣄ïiߣ äyºoâæäoºŁäºŁ‚ ,…ERXQGZHQŽ b \XN…UqLQ “…Vz\i8j WZpV8RXQ V8ZqQZq\q LQVXUJHQW3/ZLWK 8NUDLQH JRYHUQPHQW PHHW GLVFXVV10/ UPHHWLQJ IRU GLVFXVVLRQV EHWZHHQ WKH LQVXUJHQWV DQG WKH 8NUDLQLDQ JRYHUQPHQWV

nߊâ~Øïiߣ‚ìß ~àâiØoæ s~ØzߣyƒØfl VD“RX“8jKPD SDL“V8DQ KÑD“W8jGŽ ERRNEHWZHHQDW PRQH\ WXFNNHHS1)87 U+H NHHSV VRPH PRQH\ WXFNHG EHWZHHQ WKH SDJHV RI WKH ERRNV

{Æ…mØ‚ƒßŁïiߣ‚ìß î~£}ß‚ŒßŁyƒØfl GL OLQP…\j8jKPD S\D“,…QD P\jGŽ WKLV KXVEDQGZLIHEHWZHHQDW SUREOHP PDQ\1)87 U7KLV PDUULHG FRXSOH KDV PDQ\ SUREOHPV DPRQJ WKHPVHOYHVV

ß‡ßä„Ł}å àâmØmæä„ŁŠïiߣ nsØŁyߣàâ…àâ ED>D\qQŽ b QDLQÔDQ\q“…Qj Vu WjEy OR UHOLJLRQD3DLUZLWK FRXQWU\D3DLUEHWZHHQ OLQH EDUIRU QHHG UWKH QHFHVVLW\ WR VHSDUDWH EHWZHHQ UHOLJLRQ DQG SROLWLFVV

‚à‡ßŁnâïiߣ ƒâæïisØ‚ ysØäoßiØàâ…àâ~ÞyƒØfl Pt>j]~8j \RXQQLKP~ WŽV8DX“S8y OREDGŽ IDPLO\EHWZHHQ WUXVW10/ EXLOGIRU QHHG,032571)87 U,W LV QHFHVVDU\ WR EXLOG WUXVW DPRQJ WKH IDPLO\ PHPEHUVV

ˆàâäiŒßmØŁ‡ßŁ ‡âæŁäƒßiØïiߣ‚ìß ‡ºßŁ„~Ø~Þfl KR QjXQ>j ,zXQ\DX“8jKPD ,Zj\D“SD WKDW VWXGHQW WKUHH&/)EHWZHHQDW JRVWRS,03257 U*R VWDQG DPRQJ WKRVH WKUHH VWXGHQWVV

7KH IROORZLQJ H[DPSOH LV IURP /LWHUDU\ %XUPHVH

Š}à‚ØçoâæŁ…â~Øjiàâ ynØä} iŒ~Ø §⁄⁄⁄ ‚ì «⁄⁄⁄ Šïiߣ‡yØ‚ìyØä~Ł„}Ø äyßmØŁoàâ “…QpLQ]zXQ ORX“N8iJR W…Qp QD“ ,zXQGDXQKPi ORZPRVW ZRUNIHH2%- RQHGD\ WKUHHWKRXVDQGIURP

UPLQLPXP ZDJH UHTXHVWHG WR EH VHW DW WR .\DW D GD\V

’HULYHG SRVWSRVLWLRQV DUH VLPLODU WR WKH FDVH PDUNHUV LQ EHLQJ DWWDFKHG GL UHFWO\ WR QRXQV WR H[SUHVV YDULRXV VHPDQWLF UHODWLRQV EXW GL3HU IURP WKHVH LQ EHLQJ GHULYHG IURP YHUEV RU QRXQV FRQWDLQLQJ WKH SUH1[“… 1RWH WKDW WKH SUH1[“… LV UHJXODUO\ UHWDLQHG ZKHQ WKHVH PDUNHUV DUH DWWDFKHG WR QRXQV 7KH SUH1[ DOVR EORFNV YRLFLQJ LQ WKHVH PDUNHUV %RWK WKH UHWHQWLRQ RI WKH SUH1[ DQG WKH ODFN RI YRLFLQJ VXJJHVW D ORRVH MXQFWLRQ EHWZHHQ WKHVH DQG WKH SUHFHGLQJ QRXQ 7KH GHULYHG SRVWSRVLWLRQV DOVR RFFXU ZLWK YHUE SKUDVHV WR H[SUHVV DGYHUELDO PHDQLQJ XVXDOO\ LQ WKH DWWULEXWLYH IRUP VHH &KDSWHU 7KH IROORZLQJ H[DPSOHV LOOXVWUDWH WKH XVH RI WKH GHULYHG SRVWSR VLWLRQV 7KH OLVW LV E\ QR PHDQV PHDQW WR EH H[KDXVWLYH

ʔətwɛʔ ¶IRU• $SSDUHQWO\ GHULYHG IURP WKH YHUEWZŽ“ UFDOFXODWH FRQVLGHUV WKLV PDUNHU LV DW WDFKHG WR QRXQV WR H[SUHVV WKDW VRPHWKLQJ LV DVVLJQHG WR WKH UHIHUHQW ZKLFK FDQ EH KXPDQ RU QRQKXPDQ

î‚}Ø‚ßàâmØmæŠyºiØ æiàŁnߣ„‚ƒØfl P\DQPDQDLQÔDQ “…WZŽ“ Qz]j\iPŽ 0\DQPDUFRXQWU\ IRU PDNHH3RUWJHW)87 U:H KDYH WR WU\ KDUG IRU 0\DQPDUV

‚mØŁŠyºiØ ‚ji؁ªŁfl PtQ “…WZŽ“ P…N8Ž“S8 )$0’(3 IRU 1(*GL4FXOW1(* U)RU \RX LWVV QRW GL4FXOWV

P…Oj GROODU YDOXH JRXS

1)8710/ $PHULFDQ HFRQRP\ IRU JRRG

)8734 U:LOO WKH ULVH RI WKH YDOXH RI WKH GROODU EH JRRG IRU WKH $PHULFDQ HFRQRP\"V

ä…ƒßØ~ŒiØiŒ‡ªäyºŠyºiØ oâäyßmØŁ~ºåî~…â~Ø OH\LQ S\Ž“Qi>XGZH “…WZŽ“ V8~WjXQEZŽ o S\~ORX“ DLUSODQH EURNHQIDOOSHUVRQ3/ IRU UHZDUGDVNIRUHYHQW GRGR UUHOLJLRXV FHUHPRQ\ KHOG IRU YLFWLPV RI DLU FUDVKV

àâmØmæîjߣ‡ßŁäyºŠyºiØ …‚ØŁô}Ønߊâ~Ø QDLQÔDQ8j>jGZH “…WZŽ“ OjQKÑXQVD“RX“ FRXQWU\RWKHUVRQ3/ IRU ZD\VKRZERRN UJXLGH ERRN IRU IRUHLJQHUVV

ʔəʨàun ¶DERXW• 7KLV PDUNHU LV REYLRXVO\ D GHULYHG IXQFWLRQ RI WKH QRXQ“…QjXQ UPDWWHU DI IDLU FRQFHUQV ,W DOVR RFFXUV FRPPRQO\ KHDGOLQHV DQG WLWOHV ZKHUH LWV HTXLY DOHQW LV GURSSHG LQ (QJOLVK

àâmØmæä„ŁŠäïißmØŁ‚äî~ßjŒm؁ªŁfl QDLQÔDQ\q “…QjXQ P…S\æo8LQE FRXQWU\D3DLU PDWWHU 1(*VSHDNZDQW1(* U, GRQVW ZDQW WR WDON DERXW SROLWLFVV

{Ænߊâ~Øi ßŠäïißmØŁ…åfl GL VD“RX“Ni ED “…QjXQ OŽ o WKLV ERRN6%- ZKDW PDWWHU &4 U:KDW LV WKLV ERRN DERXW"V

‡iØæiÆŁ„ºƒØŠàâ änßmØçä„ìßiØ‚ŠäïißmØŁ ,Ž“Qu\ZŽ“R ViXQïDX“KP~ “…QjXQ OLIHELJDJHROG ORRNDIWHU10/ PDWWHU UDERXW ORRNLQJ DIWHU WKH HOGHUVV

Š}ßkyØ~sßä„ŁŠjºmØ犅‚ØŁ‚ŒßŁŠäïißmØŁ “…QDJD“ S\LQÑD\q “…N8ZtQ“…OjQP\j “…QjXQ IXWXUH NQRZOHGJHD3DLU RSSRUWXQLW\3/ PDWWHU UFRQFHUQLQJ IXWXUH RSSRUWXQLWLHV IRU HGXFDWLRQV

ʔətʰí ¶XQWLO XS WR• 7KH QRPLQDOL]HG IRUP RI WKH YHUEW8tUWRXFK FRPH LQWR FRQWDFW ZLWKV FDQ EH XVHG ERWK ZLWK VSDWLDO DQG WHPSRUDO PHDQLQJ

PRRQ 1YHGD\ GD\

XQWLO GD\ SXVKIROORZ 1)87

U7KH PHHWLQJ LV H[WHQGHG XQWLO -XO\ 1IWKV

kâxØzªŁ„äiŒßmØŁ‡ßŁäyºiàâ iŒ~Ø §⁄⁄⁄⁄ Šzà oâjŒÆŁî‚mØ炃Øfl JRXQ W8 \i QjXQ>jGZH

KRQRU VSHFLDO JHW VWXGHQW3/ 2%-

.\D WKUHH WHQWKRXVDQG

XQWLO

U6WXGHQWV ZKR JRW GLVWLQFWLRQ ZLOO EH DZDUGHG XS WR .\DWV

‡æiü}ØŠyiØä}Šzà …‚ØŁ~àyØyƒØfl ,…8DQ “…WŽ“Qp “…W8t OjQ SHL“WŽ 7KLQJ\DQ 10/JRXSGD\ XQWLO ZD\ FORVH1)87 U7KH URDGV DUH FORVHG XQWLO WKH ODVW GD\ RI 7KLQJ\DQV

7KH IROORZLQJ WZR H[DPSOHV DUH IURP QHZVSDSHU KHDGOLQHV

‡äüßä‚ìßiØ„ß‚ìß ä‡oâæŁ‡ª “⁄ Šzà ä„ßiØ„ìàfl ,uQEæoKPDX“\DKPD ,HV8zXQ>X Q8DX“V8Ž “…W8t \DX“ït VKLSRYHUWXUQ10/DW GLHHQGSHUVRQ VL[WHQ XQWLO DUULYHH[LVW UGHDWK WROO RI VKLS ZUHFNDJH UHDFKHV V

‚â}ØyàâmØŁ Šà-àƒ‡‚â{—„ߊzà ä„ßiØ„ìàfl PRXQGjLQ “HLQGt\i,…PRX“G…\D “…W8t \DX“ït VWRUP ,QGLDRFHDQ XQWLO DUULYHH[LVW UVWRUP UHDFKHV ,QGLDQ 2FHDQV

7KH SRVWSRVLWLRQ“… 8tFDQ DOVR EH DWWDFKHG WR YHUE SKUDVHV ZLWK RU ZLWKRXW WKH UHODWLYH PDUNHUWŽ b GŽ b

iߣzºiØyåçŠzà änßmØçä}‚ƒØfl Nj W8ZŽ“WŽ b “…W8t ViXQQHPŽ FDU JRRXW1)87’(3 XQWLO ZDLWVWD\)87 U,VOO ZDLW XQWLO WKH EXV OHDYHVV

‚à⣅mØŁŠzà ~ºåïisØçyƒØfl Pz OuQ “…W8t SZŽ o QtGŽ VN\ EULJKW XQWLO HYHQW ORRN1)87 U, ZDWFKHG WKH SHUIRUPDQFH XQWLO GD\EUHDNV

Šà~Øä„Ł~ŒiØyåçŠzà â}ØŁäî~ß‚àyƒØfl “HL“\q S\Ž“WŽ b “…W8t S8zXQ S\æoPtGŽ VOHHSD3DLU EURNHQ1)87’(3 XQWLO SKRQHV VSHDNFDWFK1)87 U, HQGHG XS WDONLQJ RQ SKRQH VR ORQJ WKDW , GLGQVW JHW HQRXJK VOHHSV

ʔətàin ¶DFFRUGLQJ WR DORQJ• 7KLV PDUNHU GHULYHG IURP WKH YHUEWjLQUPHDVXUH FRPSDUH PDWFKV LV DW WDFKHG WR QRXQV WR H[SUHVV WKH IXQFWLRQ UDFFRUGLQJ WRV 0RUH IUHTXHQWO\ LW RFFXUV ZLWK DWWULEXWLYH YHUE SKUDVHV WR IRUP DGYHUELDO H[SUHVVLRQV

äß…âæŁiºmØŁiàâ ‚ª…ŠyàâmØŁ zߣ~Þfl EæoOzXQJZuQJR PXOi “…WjLQ W8jED IRRWEDOO1HOG2%- RULJLQ DFFRUGLQJ NHHS,03257 U.HHS WKH IRRWEDOO 1HOG DV LW LVV

‡yØ‚ìyØŠj}ØŁjŠyàâmØŁ nßjŒ~ØjŒ~Øä~Ł‚ƒØfl ,D“KPD“ “…N8jQJi “…WjLQ VD8RX“ Q8RX“SqPŽ VSHFLI\ URRPIHH DFFRUGLQJ FRQWUDFW ELQGJLYH)87 U:H ZLOO PDNH WKH FRQWUDFW IRU \RX DFFRUGLQJ WR WKH HVWDEOLVKHG URRP UDWHV

VPViàâ àâmØmæyiß~âænæŠyàâmØŁ ‡âæŁàâmØ‚ƒØfl “ŽV“DP“ŽVNR QDLQÔDQG…JD SRXQ]DQ “…WjLQ ,zXQQDLQPŽ 6062%- FRXQWU\HYHU\ PRGHO DFFRUGLQJ XVHFDSDEOH)87 U,W ZLOO EH SRVVLEOH WR XVH 606 DFFRUGLQJ WR LQWHUQDWLRQDO VWDQGDUGVV

ä~ÞiØäqŁŠyàâmØŁ ä„ßmØŁ‚ƒØfl SDX“]q “…WjLQ \jXQPŽ PDUNHWSULFH DFFRUGLQJ VHOO)87 U,W ZLOO EH VROG DW WKH PDUNHW SULFHV

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

$ YHUE SKUDVH FRQVLVWV PD[LPDOO\ RI WKH IROORZLQJ HOHPHQWV SUHYHUEDO DX[LO LDU\ PDLQ YHUEV SRVWYHUEDO DX[LOLDULHV SOXUDO PDUNHU DVSHFWXDO PDUNHUV SROLWHQHVV VWDWXV PDUNHU 7KH QHJDWLRQ PDUNHUP… UQ WV FDQ RFFXU LQ IURQW RI DQ\ RI WKH YHUEDO HOHPHQWV ZLWKLQ WKH YHUE SKUDVH 1RWH WKDW VRPH VORWV FDQ EH 1OOHG E\ RQO\ RQH HOHPHQW ,Q VRPH FDVHV VXERUGLQDWRUV FDQ RFFXU EHWZHHQ SUHYHUEV DQG PDLQ YHUEV DQG EHWZHHQ PDLQ YHUEV DQG SRVWYHUEV ZLWKRXW REYLRXVO\ FKDQJLQJ WKH PHDQLQJ 7KH SRVVLELOLW\ RI VXERUGLQDWRUV GHSHQGV RQ WKH GHJUHH RI ERXQGHGQHVV RI WKH DX[LOLDULHV WR WKH PDLQ YHUEV

3UHYHUEDO DX[LOLDULHV DUH YHUEV WKDW RFFXU EHIRUH WKH PDLQ YHUEV DQG H[SUHVV GL3HUHQW JUDPPDWLFDO DQG VHPDQWLF QRWLRQV ,Q PRVW FDVHV WKH IXQFWLRQ RI WKH SUHYHUEDO DX[LOLDULHV LV WUDQVSDUHQW IURP WKHLU OH[LFDO VHPDQWLFV DV IXOO YHUEV DQG WKH FRQVWUXFWLRQV DUH XVXDOO\ LFRQLF 7KH IROORZLQJ LV D QRQH[KDXVWLYH OLVW RI IUHTXHQW SUHYHUEDO DX[LOLDULHV $OO EXW WKH ODVW RI WKHVH FDQ RFFXU ZLWK D IROORZLQJ VXERUGLQDWRU 7KH SHUPLVVLYHFDXVDWLYH SUHYHUEDO DX[LOLDU\Sq

UJLYHV QHYHU RFFXUV ZLWK D VXERUGLQDWRU EXW LPPHGLDWHO\ SUHFHGHV WKH PDLQ YHUE 7KH PDLQ YHUE LV QHYHU YRLFHG DIWHU D SUHYHUEDO DX[LOLDU\ 7KH QRUPDO QHJDWLRQ SDWWHUQ ZLWK SUHYHUEDO DX[LOLDULHV LV ZLWK WKH QHJDWRUP… DWWDF HG WR WKH PDLQ YHUE 35(9P… 9

la ¶FRPH• DQGθwà ¶JR• 7KHVH EDVLF PRWLRQ YHUEV LQGLFDWH WKH GLUHFWLRQ WRZDUGV DQG DZD\ IURP WKH FHQWHU RI LQWHUHVW UHVSHFWLYHO\ $V SUHYHUEDO DX[LOLDULHV ZLWK RU ZLWKRXW WKH VHTXHQWLDO PDUNHUSu EuUDQG WKHQV WKH\ H[SUHVV SXUSRVLYH PHDQLQJ UFRPH DQG 9V DQG UJR DQG 9V UHVSHFWLYHO\

‡ªi {Æ‚ìß Š…â~Ø…ß…â~ØyƒØfl ,XJi GLKPD “…ORX“ OD ORX“WŽ 6%- WKLVDW ZRUN FRPH GR1)87 U+H KDV FRPH KHUH WR ZRUNV

z‚mØŁƒØ‚ì߇ºßŁnߣ‚…åfl W8…PuQ EŽKPD ,Zj VjP…OŽ o FRRNHGULFH ,17(5DW JR HDW)87&4 U:KHUH DUH ZH JRLQJ WR HDW"V

…ß‚äî~ß}åfl OD P…S\æoQŽ b U’RQVW FRPH WDONLQJ WR PHV …ß‚~Ø}åfl OD P…ïRX“QŽ b U’RQVW FRPH GLVWXUELQJ PHV ‡ºßŁ‚ä‚Ł}åfl ,Zj P…PqQŽ b U’RQVW JR WR DVN KHUV ‡ºßŁ‚n}åfl ,Zj P…ViQŽ b U’RQVW JR WHDVLQJ KLPV

pyan ¶UHWXUQ• 3\DQ UUHWXUQV DV SUHYHUEDO DX[LOLDU\ LQGLFDWHV WKDW DQ DFW LV UHSHDWHG RU GRQH LQ UHWXUQ 7KH DX[LOLDU\ IXQFWLRQV DUH HDVLO\ GHULYDEOH IURP WKH IXOO YHUE VHPDQWLFV 7KH EHVW (QJOLVK HTXLYDOHQW LV RIWHQ WKH SUH1[UH DV L UHZULWH UHGR UHFRQVLGHU HWF

Šä÷iî~}Ø‚Š‚ØŁ}åäyßçfl “…QZH S\DQ P…“jQQŽ bGæb VPDOOFKDQJH UHWXUQ 1(*UHIXQG352+&2175 U.HHS WKH FKDQJHV

{ÆŠäîjŠä}iàâ î~}؇âæŁ‡~Øàâ …àâyƒØfl GL “…Q8H“…QHJR S\DQ ,RQ,D“S8y ORGŽ WKLV VLWXDWLRQ2%- UHWXUQ FRQWHPSODWHIRU QHHG1)87 U:H QHHG WR UHDQDO\]H WKH VLWXDWLRQV

äjŒŁ‡ºßŁyåç ~àâiØoæ Šî‚}Øî~}Øo~Ø~Þfl Q8u>ZjGŽ b SDL“V8DQ “…P\DQ S\DQ V8D“SD ERUURZJR 1)87’(3

PRQH\ 10/IDVW UHWXUQ SD\EDFN,03257

U3D\ EDFN WKH PRQH\ \RX ERUURZHG DV VRRQ DV SRVVLEOHV

‚ÆŁî~}Ø…ßð~Æfl Pu S\DQ ODEL 1UH UHWXUQ FRPH16,7 U7KH HOHFWULFLW\ LV EDFNV

tʰaʔ ¶SLOH XS LPSRVH SXW RQ WRS• 7KLV SUHYHUEDO DX[LOLDU\ H[SUHVVHV DQ DFWLYLW\ WKDW LV GRQH LQ DGGLWLRQ RU WKDW WKH VDPH DFWLYLW\ LV GRQH DJDLQ EXW ZLWK D GL3HUHQW RU QHZ REMHFW LI WKH YHUE LV WUDQVLWLYH 7KRXJK WKH WUDQVODWLRQ RI SUHYHUEDO 8D“LV VLPLODU WR SUHYHUEDO S\DQ WKH WZR IXQFWLRQ GL3HUHQWO\ LQ PRVW FRQWH[WV ,Q VRPH H[SUHVVLRQV WKH WZR FDQ EH XVHG LQWHUFKDQJHDEO\ DV LQW8D“ S\æoED“zXQD GS\DQ S\æoED“zXQ ERWK IRU USOHDVH VD\ LW DJDLQV

{ÆynØjÞz~ØàâmØ„mØ ‚â}ØäiıŁ„‚ƒØfl GL W…N8D W8D“ QDLQ\LQ PyXQ QZq\iPŽ WKLV RQHWLPH SLOHXS ZLQLI VQDFN WUHDWJHW)87 U,I \RX ZLQ DJDLQ \RX KDYH WR WUHDW XVV

~àâiØoæ„ìà„mØ z~Ø…ìŽŁ‚ƒØfl SDL“V8DQ ït\LQ W8D“ KOX“zXQPŽ PRQH\ H[LVWLI SLOHXS GRQDWHIXUWKHU)87 U,I , KDYH PRQH\ , ZLOO GRQDWH PRUHV

Šå{Æ‚ìß ŠäoßiØŠŽ‡nØz~Ø‚äoßiØ„ªŁfl “Ž oGLKPD “…V8DX““…“X,L“ W8D“ P…V8DX“\iE WKHUH EXLOGLQJQHZ SLOHXS 1(*EXLOGJHW1(* U1R QHZ EXLOGLQJ PXVW EH EXLOW RYHU WKHUHV

FRXQWU\ RWKHUWR

3KLOLSSLQHVZRUNHU3/ SLOHXS 1(*UHOHDVH &21751(*

U1R PRUH )LOLSLQR ZRUNHUV ZLOO EH VHQW DEURDGV

ŠyàŠiŒäyßç z~Ø‚äî~ß䇣ªŁfl “…Wt“…QiGæb W8D“ P…S\æo>qE SUHFLVHO\&2175 SLOHXS 1(*VSHDN\HW1(* U7KH\ KDYHQVW JLYHQ DQ\ PRUH GHWDLOV \HWV

sʰɛʔ ¶FRQQHFW FRQWLQXH• 7KLV DX[LOLDU\ ZKLFK DV D IXOO YHUE PHDQV UFRQQHFW MRLQ DVVRFLDWHV LV XVHG WR GHVFULEH DQ XQLQWHUUXSWHG DFWLYLW\ ,W FDQ EH UHQGHUHG LQ (QJOLVK DV UFRQWLQXH JR RQV ,W FDQ EH XVHG ZLWK ERWK DFWLYLW\ YHUEV DQG VWDWLYH YHUEV

‡ªmƒØjŒmØŁ…àâ~å oiØjmØänjŒmØyƒØfl ,…ÔŽ8uQOR EŽ o V8Ž“ N8LQ]H8LQGŽ IULHQGDV (;&/ FRQQHFW ORYHOHWZDQW1)87 U, ZDQW \RX WR JR RQ ORYLQJ PH DV D IULHQGV

Šïi‚ØŁiØ‚äyº oiØînØàâmØyƒØfl “…QjQS8Ž“KP~GZH V8Ž“ S8\L“QDLQGŽ YLROHQW1/3/ FRQQHFW EHFDSDEOH1)87 U7KH YLROHQFH PD\ FRQWLQXHV

ä„ß~iàâ j„ÆŁoi؇ºßŁ‚ì߅ߣfl “~\æoSiJR N8…\u V8Ž“ ,ZjKPD Oj (XURSHWR MRXUQH\ FRQQHFW JR)8710/ 34 U:LOO \RX FRQWLQXH \RXU WULS WR (XURSH"V

äyßØð~Æ oiØ‚ïiߣjŒm؁ªŁfl WæEL V8Ž“ P…Qj8LQE DGHTXDWH16,7 FRQQHFW 1(*KHDUZDQW1(* U6WRS LW , GRQVW ZDQW WR KHDU DQ\PRUHV

laiʔ ¶IROORZ JR DURXQG DQG• $V D IXOO YHUEODL“PHDQV UIROORZV $V D SUHYHUEDO DX[LOLDU\ LW LQGLFDWHV WKDW DQ DFWLYLW\ LV FDUULHG RXW IROORZLQJ D FHUWDLQ GLUHFWLRQ OLNH IROORZLQJ DQRWKHU SHUVRQ

‡ª „ºß‚ìß ~àâiØoæ …àâiØäyßmØŁyƒØfl ,X \ZDKPD SDL“V8DQ ODL“WjXQGŽ YLOODJHDW PRQH\ IROORZDVNIRU1)87 U+H ZHQW DURXQG WKH YLOODJH EHJJLQJ IRU PRQH\V

ß‡ßî~}ØynØäƒßiØ …àâiØ„ìßä}yƒØfl ED>DE\DQ W…\DX“ ODL“ ïDQHGŽ LQWHUSUHWHU RQH&/) IROORZ VHHNVWD\1)87 U, KDYH EHHQ ORRNLQJ IRU DQ LQWHUSUHWHU HYHU\ZKHUHV

ßînØ…àâ …àâiØäìßi؃ìiØä}yß…åfl ED S8\L“Oy ODL“ KQiXQQHGD OŽ o ZKDW EH68% IROORZ GLVWXUEVWD\1)8710/ &4 U:K\ GRQVW \RX OHDYH PH DORQH"V

…àâiØ‚ïisØçjŒm؁ªŁfi Šà‚Ø‚ìߊ…â~Ø„ìàyƒØfl ODL“ P…Qt8LQE “HLQKPD “…ORX“ ïtGŽ IROORZ 1(*ORRNZDQW1(* KRXVHDW ZRUN H[LVW1)87 U, GRQVW ZDQW WR FRPH DORQJ WR KDYH D ORRN , KDYH ZRUN DW KRPHV

…àâiØ‚äìßmØçƒìiØ}åfl ODL“ P…KQiXQQŽ b IROORZ 1(*GLVWXUE352+ U6WRS ERWKHULQJ PHV

ɕauʔ ¶ZDON JR DURXQG DQG• 6LPLODU WRODL“UIROORZV WKH YHUEïDX“ ZDONV LV XVHG DV D SUHYHUEDO DX[LOLDU\ GHQRWLQJ DQ DPEXODWLYH DFWLYLW\ ,Q FRQWUDVW WRODL“UIROORZ L GHVFULEHV DQ DFWLYLW\ ZKLFK LV FDUULHG RXW LQ D PRUH GL3XVH OHVV SODQQHG PDQQHU 6RPH ORFDO YDULHWLHV XVHODL“UIROORZV DOVR IRU WKLV QRWLRQ

{ÆŠäïißmØŁ ä…łßiØ‚äî~ß}åfl GL “…QjXQ ïDX“ P…S\æoQŽ b WKLV PDWWHU ZDON 1(*VSHDN352+ U’RQVW JR DURXQG WDONLQJ DERXW WKLVV

äiŒßmØŁ~àyØ„iØ‚ìß ä…łßiØ…sØ‚ƒØfl QjXQSHL“\Ž“KPD ïDX“ OŽPŽ VFKRROFORVHGD\DW ZDON JRURXQG)87 U’XULQJ WKH KROLGD\V , JR YLVLWLQJ DURXQGV

äïißØîmßäyº ä…łßiØä†ä}yƒØfl QæÑDGZH ïDX“ ZHQHGŽ DGYHUWLVHPHQW3/ ZDON GLVWULEXWHVWD\1)87 U7KH\ DUH GLVWULEXWLQJ DGYHUWLVHPHQWVV

ni¾äyº ä…łßiØ‚º}åfl VŽ“NXGZH ïDX“ P…S8ZiQŽ b SDSHU3/ ZDON 1(*PHVVXS352+ U’RQVW PHVV XS WKH SDSHUV DOO RYHUV

sá ¶EHJLQ• 7KLV DX[LOLDU\ LQGLFDWHV WKH EHJLQQLQJ RI DQ DFWLYLW\ RU VLWXDWLRQ

iߣŠä„ßmØŁnmØyßäyº nºmØçð~Æfl Nj “…\jXQVLQWDGZH Vi S8ZtQEL FDU 10/VHOOFHQWHU3/ EHJLQ RSHQ16,7 U7KH FDU VDOHV FHQWHUV DUH RSHQ QRZV

iàâƒØi n‚äî~ß}åfi ‡ªä‚Łyßiàâ änßmØçfl NRJi Vi P…S\æoQŽ b ,X PqGDJR ViXQ ERG\6%- EHJLQ 1(*VSHDN

352+ DVN1)8710/

2%- ZDLW

U’RQVW VWDUW WDONLQJ ZDLW XQWLO KH DVNVV

‡ªyàâi äoºŁäºŁàâ ni‚ØŁ…ì‚ØŁyƒØfl ,XGyJi V8ZqQZqEy Vi NjQKOjQGŽ 3/6%- GLVFXVVIRU EHJLQ SURSRVH1)87 U7KH\ WRRN WKH LQLWLDWLYH WR KDYH WKH GLVFXVVLRQV

‡ÆjŒmØŁn‚oàâjmØ ä}„߃ª~Þfl ,…Q8uQ Vi P…V8RJLQ QH\D \XED VRQJ EHJLQ 1(*VD\EHIRUH SODFH WDNH,03257 U7DNH \RXU VHDW EHIRUH WKH\ VWDUW VLQJLQJV

iŒ‚i n‚äjí~ށªŁ ‡ªinäjíyßfl Q…PiJi Vi P…N8æEDE ,XJi Vi )6%- EHJLQ 1(*FDOO,032571(* 6%- EHJLQ

N8æGD FDOO1)8710/

U, GLGQVW PDNH WKH 1UVW VWHS LQ FDOOLQJ KH VWDUWHG LWV

ʨo ʨo.tin ¶GRLQDGYDQFH• $V D IXOO YHUEQRPHDQV UZHOFRPH UHFHLYH JXHVWV SLFN XSV $V SUHYHUEDO DX[LOLDU\ LW LQGLFDWHV WKDW DQ DFWLYLW\ LV GRQH DKHDG RI WLPH LQ DGYDQFH ,Q WKLV IXQFWLRQ LW LV IUHTXHQWO\ FRPELQHG ZLWK WKH YHUEWLQULPSRVH SXW RQV DQG RFFXUV DVQRWLQUGR LQ DGYDQFHV 7KH VHPDQWLF OLQN LQ WKLV FDVH LV SUREDEO\ OHVV WUDQVSDUHQW WKDQ ZLWK PRVW RWKHU SUHYHUEDO DX[LOLDULHV 7KH SRVWYHUEDO DX[LOLDU\KQtQZLWK WKH VDPH IXQFWLRQ RIWHQ FRRFFXUV ZLWKQR WLQ

…ß…àâ„ìà„mØ æiàäî~ß~Þä}ßØfl ODOy ït\LQ QR S\æoED Qæ FRPH68% H[LVWLI LQDGYDQFH VSHDN,03257 &63 U,I \RX FRPH WHOO PH LQ DGYDQFH ZLOO \RXV

…iØ‚ìyØæià†ƒØzߣ„‚…ߣfl OŽ“KPD“ QR ZŽW8j\iP…Oj WLFNHW LQDGYDQFH EX\NHHSJHW)8734 U6KDOO , EX\ WKH WLFNHW LQ DGYDQFH"V

ä}„ßæiàŽŁzߣ‚ƒØfl QH\D QR “W8jPŽ SODFH LQ DGYDQFH SUHHPSWNHHS)87 U,VOO UHVHUYH D SODFH DKHDGV

‡ßŁ}å‡‚ÆŁi æiào—î~ìmØçyƒØfl ,jQŽ b ,…PuJi QR V8DQGi S\iKQtQGŽ VRQZLWK GDXJKWHU6%- LQDGYDQFH GHVLUH VKRZLQDGYDQFH1)87 U0\ VRQ DQG GDXJKWHU SURWHVWHG LQ DGYDQFHV

z‚mØŁæià‚jŒiØzߣ}å ƒØŠjŒà}Øä„ßiØ‚…å ‚‡àªŁfl W8…PuQ QR P…Q8Ž“W8jQŽ b EŽ“…Q8HLQ FRRNHGULFH LQDGYDQFH 1(*FRRNNHHS352+ ,17(5WLPH

U’RQVW FRRN WKH PHDO LQ DGYDQFH , GRQVW NQRZ ZKDW WLPH ,VOO EH EDFNV

ʨí ¶ORRN• 7KH SUHYHUEDO DX[LOLDU\Qt UORRNV LQGLFDWHV WKDW DQ DFWLYLW\ LV GRQH DIWHU FRQ VLGHULQJ WKH DSSURSULDWHQHVV ,W FDQ EH WUDQVODWHG DV UWKLQN DQGV RU OLWHUDOO\ UORRN DQGV

ïisØçä~Ł~Þfl QtSqED ORRNJLYH,03257 U*LYH PH ZKDW \RX WKLQN LV DSSURSULDWHV VSRNHQ E\ D WD[L GULYHU WR WKH FXVWRPHU

~àâiØoæïisØç‡âæŁä}ßØfl SDL“V8DQ Qt ,zXQ Qæ PRQH\ ORRN XVH &63 U’RQVW VSHQG PRQH\ ZLWKRXW WKLQNLQJ FDUHIXOO\V

j„ÆŁïisØç‡ºßŁä}ßØfl N8…\u Qt ,Zj Qæ MRXUQH\ ORRN JR &63 U%H FDUHIXO RQ \RXU WULSV

…‚ØŁïisØ炇ºßŁäyßç j…âyØyàâiØ‚ìßä~Þçfl OjQ Qt P…,ZjGæb N8…ORX“WDL“KPD Eæb ZD\ ORRN 1(*JR&2175 VWXPEOH)8710/ ,16,67 U6LQFH \RX GLGQVW ZDWFK ZKLOH ZDONLQJ QRW VXUSULVLQJ WKDW \RX WULSSHGV

ïisØç‚…â~Øäyßç ‚ìߣiâ}Øyßä~Þçfl Qt P…ORX“Wæb KPjNRXQGD Eæb /RRN 1(*GR&2175 ZURQJDOO1)871/ ,16,67 U6LQFH \RX GLGQVW WKLQN QR ZRQGHU \RX PDGH PLVWDNHVV

ku ku.ɲi ¶KHOS• 7KLV SUHYHUEDO UHWDLQV LWV OH[LFDO VHPDQWLFV DV DQ DX[LOLDU\ DQG LQGLFDWHV WKDW DQ DFWLYLW\ LV GRQH IRU WKH VDNH RI VRPHRQH HOVH HLWKHU DORQH RU WRJHWKHU ZLWK WKH EHQH1FLDU\

‡ªäuŁiàâ iªäî~ßä~Ł~Þ…ßŁfl ,…W8qJR NX S\æoSqED Oj ERVV2%- KHOS VSHDNJLYH,03257 34 U3OHDVH WHOO WKH ERVV DERXW LW IRU PHV

Š‚ŒàŁ‡ßŁnàyØ|ßyØ}å iªsÆänßmØçä„ìßiØïiyƒØfl “…P\z>j VHL“GD“QŽ b NXÑL ViXQïDX“QiGŽ FLWL]HQ VSLULWZLWK KHOS ORRNDIWHU3/1)87 U7KH\ DOO ORRNHG DIWHU XV ZLWK SDWULRWLF PLQGV

iä…Łäyºi ß‚ìiª‚‡ƒØä~ŁªŁ…ߣfl N8…OqGZHJi EDKPi NX P…,ŽSqE Oj FKLOG3/6%- ZKDW5(675 KHOS 1(*FDUU\JLYH1(* 34 U7KH FKLOGUHQ GLGQVW KHOS \RX FDUU\ DQ\WKLQJ DW DOO"V

iŒ‚‚ŒiØ„sØäyºiàâ iª‚‡âyØä~Ł„mØäyßmØ Q…Pi P\Ž“\HGZHJR NX P…,RX“Sq\LQ GDXQ ) H\HOLTXLG3/2%- KHOS 1(*ZLSHJLYHLI HYHQ UHYHQ LI \RX GRQVW KHOS PH ZLSH P\ WHDUGURSVV

wàin ¶VXUURXQG• ,I WKH DFWLYLW\ LV H[HFXWHG FRRSHUDWLYHO\ E\ WKH VXEMHFWV WKH SUHYHUEDOZjLQ UVXUURXQGV LV XVHG $OWKRXJK LW RIWHQ LPSOLHV D VHQVH RI UKHOSLQJV LW EDVL FDOO\ RQO\ PHDQV WKDW VRPHWKLQJ LV GRQH WRJHWKHU 7KH PHDQLQJ UKHOSV LV LQWURGXFHG WR WKH H[SUHVVLRQ E\ WKH FRQWH[W RU WKH SUHVHQFH RI D EHQHIDFWLYH PDUNHU VXFK DV WKH SRVWYHUEDOSq UJLYHV 7KH HPSKDVLV LV RQ WKH DFWRU ZKR MRLQV LQ DQ DFWLYLW\ WKDW LV DOUHDG\ EHLQJ GRQH RU KDV WR EH GRQH E\ DQRWKHU DFWRU

‡ªiàâ †àâmØŁoªïi…àâ Šà‚ØizºiØäî~Ł‡ºßŁyƒØfl ,~JR ZjLQ V8X8iOy “HLQJi W8ZŽ“S\q>ZjGŽ ’(32%- VXUURXQG VFROG3/68% KRXVHIURP JRRXWUXQJR

1)87 U6LQFH HYHU\ERG\ VFROGHG KLP KH UDQ DZD\ IURP KRPHV

†àâmØŁŠïiæä~Łïi~Þfl ZjLQ “…QDQ Sq8iED VXUURXQG DGYLFH JLYH,032573/ U$GYLVH PH \RX DOOV

†àâmØŁ‚„ƒØïi~Þ}åfi ‡}ߣ~ÞyƒØfl ZjLQ P…\L8iEDQŽ b ,…QjEDGŽ VXUURXQG 1(*ODXJK3/,03257352+ SLW\,032571)87 U’RQVW \RX DOO ODXJK DW KLP SRRU JX\V

0’(3 2%-

PRQH\ VXUURXQG DVNIRUVWD\3/ 1)87

U+HOS HYHU\ERG\ LV DVNLQJ PH IRU PRQH\V

†àâmØŁ‚nØŁnߣ~å Šî~nØ~åymØä}yƒØfl ZjLQ P…VuQ]jEŽ o “…S\L“ SŽ o WLQQHGŽ VXUURXQG 1(*FRQVLGHUZLWKRXW IDXOW (;&/ SXWRQVWD\1)87 U,QVWHDG RI KHOSLQJ PH WKLQN \RXVUH MXVW EODPLQJ PHV

pàun ¶FRPELQH DGG•DQGkʰwɛ̀ ¶VSOLWWDNHDSDUWVHSDUDWH• 7KLV SUHYHUEDO DX[LOLDU\ LQGLFDWHV WKDW HLWKHU WKH VXEMHFWV FRPELQH IRUFHV WR H[HFXWH WKH DFWLYLW\ RU WKDW GL3HUHQW LQVWDQFHV RI WKH VDPH DFWLYLW\ DUH FRPELQHG LQWR RQH DFW 8QOLNHZjL UVXUURXQGV LW SXWV PRUH HPSKDVLV RQ WKH FROOHFWLYH H3RUW 7KH RSSRVLWH QRWLRQ RISjXQUFRPE QH DGGV LV H[SUHVVHG E\ WKH SUHYHUEN8ZŽ oUWDNH DSDUW VHSDUDWHV 7KLV DX[LOLDU\ LQGLFDWHV WKDW WKH DFWLYLWLHV DUH QRW H[HFXWHG MRLQWO\ EXW VHSDUDWHO\ E\ HDFK VXEMHFW RU RQ HDFK REMHFW

Š†yØäyº ‚}iØî}Ø ä~ÞmØŁä…łßØ‚ƒØfl “…ZX“WZH P…QŽ“S8\DQ SjXQ ïæPŽ FORWKHV3/ WRPRUURZ FRPELQH ZDVK)87 U:HVOO GR DOO WKH ODXQGU\ WRPRUURZ LQ RQH JRV

3/ F PELQH6(4 R[\JHQWDQN GRQDWH3/

1)87 U9LVLWRUV DQG ORFDOV JHW WRJHWKHU DQG PDNH D FRPELQHG H3RUW WR GRQDWH R[\JHQ WDQNVV

y~Ø‚äyßØ}å ‚Æ{Æƒß äoºŁäºŁ~ºå ä~ÞmØŁ…â~Ø‚ƒØfl WD“P…GæQŽ b PLGL\D V8ZqQZqEZŽ o SjXQ ORX“PŽ DUP\ZLWK PHGLD GLVFXVVHYHQW FRPELQH GR)87 U7KH DUP\ DQG WKH PHGLD ZLOO JHW WRJHWKHU WR KDYH D GLVFXVVLRQV

~àâiØoæ jºå„ìmØŁ‚ƒØfl SDL“V8DQ N8ZŽ o ïuQPŽ PRQH\ VSOLW FOHDU)87 U:H ZLOO HDFK SD\ RXU RZQ ELOOV

Šà‚ØäzßmØiŒð~ÆŁ Šà‚Øjºåä}yƒØfl “HLQGDXQQiEu “HLQ N8ZŽ o QHGŽ PDUULDJHIDOO6(4 KRXVH VSOLW VWD\1)87 U, OHIW P\ SDUHQWVV KRXVH DIWHU , JRW PDUULHGV

Šâ~Ønâjºå„ìß‚ƒØfl “RX“V~ N8ZŽ o ïDPŽ JURXS VSOLW VHHN)87 U:H ZLOO VHDUFK LQ VHSDUDWH JURXSVV

‡i؇yØ…ºyØjºåjŒiØzߣyƒØfl ,Ž“,D“OX“ N8ZŽ o Q8Ž“W8jGŽ YHJHWDULDQ VSOLW FRRNNHHS1)87 U7KHUH DUH VHSDUDWH YHJHWDULDQ GLVKHVV

3UHYHUEDOSqUJLYHV GL3HUV IURP DOO RWKHU SUHYHUEDO DX[LOLDULHV LQ WZR UHVSHFWV )LUVW LW QHYHU RFFXUV ZLWK D IROORZLQJ VXERUGLQDWRU DQG VHFRQG WKH QHJD WLRQ SDWWHUQ LV PRUH 2H[LEOH ZLWK WKH UHJLRQDO YDULDQWP…Sq 9 6HPDQWLF OO\ WKLV FRQVWUXFWLRQ QHFHVVDULO\ LQYROYHV D FKDQJH RI VXEMHFW IURP WKH DX[LOLDU\ WR WKH PDLQ YHUE ZKLOH RWKHU SUHYHUEDO DX[LOLDULHV DOZD\V KDYH WKH VDPH VXEMHFW DV WKH PDLQ YHUE 7KH VXEMHFW RI WKH DX[LOLDU\ DSSHDUV DV VXEMHFW LQ WKH FODXVH WKH VXEMHFW RI WKH PDLQ YHUE WKH FDXVHH DSSHDUV DV REMHFW 7KH FRQVWUXFWLRQ ZLWK SUHYHUEDO qUJLYHV LV QRW IRXQG LQ 8SSHU 0\DQPDU ZKHUH RQO\ WKH SRVWYHUEDO FDXVDWLYH DX[LOLDULHV DUH XVHG LQ WKH VDPH IXQFWLRQ 0DQ\ HGXFDWHG VSHDNHUV FRQVLGHU WKLV FRQVWUXFWLRQ DV VXEVWDQGDUG DQG W\SLFDO IRU VRXWKHUQ %XUPHVH 3UHYHUEDOSqUJLYHV LV XVHG WR H[SUHVV SHUPLVVLYH FDXVDWLYH DQG FDQ EH UHQGHUHG LQ (QJOLVK DV UOHW DOORZV

‚à⣄ºß…àâ Šä‚i ‡‚ÆŁiàâ Šî~mØ‚ìß ä~Ł‚inߣªŁfl Pz \ZDOy “…PHJi ,…PuJR “…S\LQKPD Sq P…J…]jE VN\ UDLQ68% PRWKHU

6%- GDXJKWHU 2%-

RXWVLGHDW JLYH 1(*SOD\ 1(*

U7KH PRWKHU GRHVQVW OHW KHU GDXJKWHU SOD\ RXWVLGH EHFDXVH LWVV UDLQLQJV

‡ªi ‡ªŠ‚ŒàŁ‡ßŁiàâ äß…âæŁ~ºå Š~yØyàâmØŁä~ŁïisØçyƒØfl ,XJi ,~ “…P\z>j

6%- ’(3 PDQ 2%-

IRRWEDOO HYHQW

ZHHNHYHU\ JLYH ORRN 1)87

U6KH OHWV KHU KXVEDQG ZDWFK WKH IRRWEDOO JDPH HYHU\ ZHHNV

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i 8i LV LQ VRPH FDVHV SODFHG EHWZHHQ WKH PDLQ YHUE DQG WKH DX[LOLDU\ 7KH\ FDQQRW RFFXU DORQH ZLWK WKH IXQFWLRQ WKH\ H[SUHVV DV DX[LOLDULHV EXW DUH DOZD\V DWWDFKHG WR D OH[LFDO YHUE

ʨʰin ʥin ¶ZDQWWR• 7KLV IRUP ZKLFK GRHV QRW KDYH D FRJQDWH IXOO YHUE LV DWWDFKHG WR WKH YHUE WR H[SUHVV GHVLGHUDWLYH QRWLRQ ,W RIWHQ KDV D FRXQWHUIDFWXDO FRQQRWDWLRQ LQ WKH VW\OH RI UZRXOG OLNH WRV WKRXJK WKLV LV QRW QHFHVVDULO\ WKH FDVH

„}Øiâ}Ø ‡ºßŁjŒmØyƒØfl \DQJRXQ ,Zj8LQGŽ <DQJRQ JRZDQW1)87 U,VG OLNH WR JR WR <DQJRQV

iº}Ø~ŒyßäqŁ}ØŁä…Ł ‡àjŒmØ…àâ~Þfl NXQS\XWD ]qKQzXQOq ,t8LQOyED FRPSXWHU SULFH’,0 NQRZZDQW68%,03257 U, MXVW ZDQWHG WR NQRZ WKH SULFH RI WKH FRPSXWHUV

‡â~ØäoßmØäißmØŁynØäƒßiØ înØjŒmØyƒØfl ,…\RX“V8DXQJjXQ W…\DX“ S8\L“Q8LQGŽ DFWRUJRRG RQH&/) EHZDQW1)87 U, ZDQWHG WR EH D JRRG DFWRUV

î‚}؂߃ª}Æiâ{Ønß…âæŁ ‡âæŁjŒmØyƒØfl P\DQPD\XQLNRX“VDOzXQ ,zXQ8LQGŽ 0\DQPDU8QLFRGHOHWWHU XVHZDQW1)87 U, ZRXOG OLNH WR XVH 0\DQPDU 8QLFRGHV

äißmØ‚ä…Ł îmmØŁyßiàâ ‚ïiߣjŒm؁ªŁfl NDXQPiOq ÑuQGDJR P…Qj8LQE JLUO UHIXVH1)8710/2%- 1(*KHDUZDQW1(* U, GRQVW ZDQW WR KHDU WKH JLUO UHIXVH PHV

se ze ¶OHW• 7KLV IRUP LV EDVHG RQ WKH DUFKDLF YHUEVHURUG FRPPDQGV DQG KDV FDXVDWLYH IXQFWLRQ ,W LV XVHG PRVWO\ LQ /LWHUDU\ %XUPHVH ,Q WKH FROORTXLDO ODQJXDJH SRVWYHUEDO VH ]H UOHWV RFFXUV RQO\ LQ SURKLELWLYH UGRQVW OHW QV DQG GHVLGHU DWLYH UZDQW Q WR QV H[SUHVVLRQV

{Æâ}ØŁiàâ ä„‚nàâän}åfl GL S8zXQJR \H P…VR]HQŽ b WKLV SKRQH2%- ZDWHU 1(*ZHWOHW352+ U’RQVW OHW WKLV SKRQH JHW ZHWV

iä…Ł ‚àâŁän}åfl N8…Oq P…Qz]HQŽ b FKLOG 1(*ZDNHXSOHW352+ U’RQVW PDNH WKH FKLOG ZDNH XSV

‡ªiàâ ynØäƒßiØysØŁ ‚‡ºßŁän}åfl ,~JR W…\DX“W8Ž o P…,Zj]HQŽ b ’(32%- RQH&/)RQO\ 1(*JROHW352+ U’RQVW OHW KHU JR DORQHV

‡ßŁyàâ‡‚ÆŁyàâiàâ…sØŁ äŠßmØî‚mØänjŒmØ~ÞyƒØfl ,jGy ,…PuGyJR OŽ o “DXQP\LQ]H8LQEDGŽ VRQ$663/ GDXJKWHU$663/

2%- DOVR VXFFHHGOHWZDQW,03257

1)87 U, ZRXOG OLNH \RX NLGV WR VXFFHHGV

…ªæiÆŁäyºiàâ ‚‡àänjŒm؁ªŁfl OX8uGZHJR P…,t]H8LQE DGXOW3/2%- 1(*NQRZOHWZDQW1(* U, GRQVW ZDQW WKH ROG IRONV WR NQRZV

pʰù bù ¶KDYH KDG WKH H[SHULHQFH HYHU• 7KH H[SHULHQWLDO DX[LOLDU\ S8 E UKDYH KDG WKH H[SHULHQFH KDYH HYHU KDYH DW OHDVW RQFHV LV SUREDEO\ D JUDPPDWLFDOL]HG IXQFWLRQ RI WKH IXOO YHUES8 UEHKROG VHH ZRUVKLSV LQ FRQWHPSRUDU\ %XUPHVH UHVWULFWHG WR WKH VHQVH RI UYLVLWVHH D KRO\ SODFH RU REMHFWV 7KH DX[LOLDU\ S8 E FDQ DOVR EH XVHG ZLWK IXWXUH UHIHUHQFH

‚mØŁ ~âkæä„ßiتŁ…ߣfl PuQ E…JDQ \DX“S8 Oj )$0 %DJDQ DUULYHHYHU 34 U+DYH \RX HYHU EHHQ WR %DJDQ"V

iı}ØäyßØ yâyØnß nߣªŁjŒmØyƒØfl Q…Qæ W…\RX“VD VjE8LQGŽ 0 &KLQDIRRG HDWHYHUZDQW1)87 U, ZDQW WR HDW &KLQHVH IRRG RQFH WR KDYH WKH H[SHULHQFHV

{ƇÆjŒmØŁ ‚ïiߣªŁªŁfl GL ,…Q8uQ P…QjEE WKLV VRQJ 1(*KHDUHYHU1(* U,VYH QHYHU KHDUG WKLV VRQJ EHIRUHV

{Æ…àâ…ª ‚äyºªŁªŁfl GLOR OX P…WZpEE WKLVDV SHUVRQ 1(*PHHWHYHU1(* U,VYH QHYHU PHW VRPHRQH OLNH KLPV

yá ¶JHW PXVW• 7KH IXOO YHUE\i UJHWV KDV DFTXLUHG D QXPEHU RI JUDPPDWLFDO IXQFWLRQV LQ %XUPHVH 2QH RI WKHP LV DV D SRVWYHUEDO DX[LOLDU\ H[SUHVVLQJ DQ REOLJDWLRQ RU QHFHVVLW\ VLPLODU WR (QJOLVK UKDYH JRW WR QV ,Q WKLV IXQFWLRQ LW LV D ERXQG IRUP EXW WKH SOXUDO PDUNHU Qi 8i LV SODFHG EHWZHHQ WKH PDLQ YHUE DQG WKH DX[LOLDU\ ,Q QHJDWHG FRQWH[WVP…9\i PHDQV UPXVW QRWV RU UPD\ QRWV 7KH DX[LOLDU\ \i UPXVWV LV IUHTXHQWO\ LQ VRPH YDULHWLHV UHJXODUO\ FRPELQHG ZLWK WKH IXWXUH PDUNHU PŽ 7KH OH[LFDO PHDQLQJ UJHWV LV UHWDLQHG LQ WKH JORVVHV WKURXJKRXW UH2HFWLQJ WKH RULJLQ RI WKLV DX[LOLDU\

ß…â~Ø„‚…åfl ED ORX“\iP…OŽ o ZKDW GRJHW)87&4 U:KDW GR , KDYH WR GR"V

àâmØmæäyßØŠä~í ‡nˆß„ìàïi„‚ƒØfl QDLQÔDQGæ“…Sæ ,L“VD ït8i\iPŽ FRXQWU\52<DERYH IDLWK H[LVW3/JHW)87 U:H KDYH WR EH IDLWKIXO WR RXU FRXQWU\V

nà‚Øäjí‚äyº}å „mØoàâmØïi„ŽŁ‚ƒØfl VHLQN8æKP~GZHQŽ b \LQV8DLQ8i\i“zXQPŽ FKDOOHQJH1/3/ZLWK FRQIURQWJHWIXUWKHU)87 U7KHUH ZLOO EH PRUH FKDOOHQJHV DKHDG IRU XVV

:LWK SHUFHSWLRQ YHUEV \i JHWV LV QRUPDOO\ DGGHG DQG PD\ UHPDLQ XQWUDQV ODWHG RU EH WUDQVODWHG DV UFDQ QV

î‚mØ„yƒØ P\LQ\iGŽ UFDQ VHHV ïiߣ„yƒØ Qj\iGŽ UFDQ KHDUV jænߣ„yƒØ N8DQ]j\iGŽ UFDQ IHHOV

,Q WKH QHJDWHG SDWWHUQP…9\i>qE \i UJHWV H[SUHVVHV D QRWLRQ VLPLODU WR (QJOLVK SHUIHFW WHQVH UKDYHQVW Q \HWV

ŠmØyß}iØŠ‡âæŁî~j ‚‡yØ‚ìyØ„ä‡ŁªŁfl “LQWDQŽ“ “…,zXQS\~Ji P…,D“KPD“\i>qE ,QWHUQHW 10/XVHGRIHH 1(*VSHFLI\JHW\HW1(* U,QWHUQHW UDWHV KDYH QRW EHHQ 1[HG \HWV

nßjŒ~Ø‚ìß …iØ‚ìyØ‚zà⣄䇣ªŁfl VD8RX“KPD OŽ“KPD“ P…W8z\i>qE FRQWUDFWDW KDQGQRWH 1(*EHDWJHW\HW1(* U7KH FRQWUDFW KDVQVW EHHQ VLJQHG \HWV

ß‚ì ‚nߣ„䇣ªŁfl EDKPi P…Vj\i>qE ZKDW5(675 1(*HDWJHW\HW1(* U, KDYHQVW HDWHQ DQ\WKLQJ \HWV

laiʔ ¶IROORZ MXVW IRU JRRG ZLWKRXW IXUWKHU FRQVLGHUDWLRQ• 7KH OH[LFDO YHUEODL“UIROORZV LV XVHG WR H[SUHVV DQ DFWLRQ WKDW LV GRQH RU VLWXDWLRQ WKDW H[LVWV ZLWKRXW IXUWKHU DGR RIWHQ LUUHYHUVLEOH RU VSRQWDQHRXV )UHTXHQWO\ WKHUH LV D VHQVH RI UIROORZLQJ WKH 2RZ IROORZLQJ D JLYHQ RU QDWX UDO FRXUVH RI HYHQWVV LQ WKLV DX[LOLDU\ ,Q PDQ\ FRQWH[WV WKH XVH RI SRVWYHUEDO ODL“DOVR GHQRWHV DQ HPRWLRQDO LQYROYHPHQW RI WKH VSHDNHU LQGLFDWLQJ WKDW WKH\ GRQVW ZDQW WR EH IXUWKHU LQYROYHG LQ WKH VLWXDWLRQ RU DFWLYLW\ ,W LV RI WHQ XVHG LQ LPSHUDWLYHV DGGLQJ D VHQVH RI XUJHQF\ WR WKH FRPPDQG 7KLV DX[LOLDU\ LV KHUH JORVVHG DV UIROORZV DFFRUGLQJ WR WKH OH[LFDO PHDQLQJ RI WKH YHUE WKRXJK WKH IXQFWLRQ LV LQ VRPH FDVHV UDWKHU UHPRYHG IURP WKH OH[LFDO VHPDQWLFV DW 1UVW VLJKW

„åiàâ yàâmØ…àâiØð~Æfl \Ž oJR WDLQODL“SL SROLFH2%- UHSRUWIROORZ16,7 U7KH\ KDYH DOUHDG\ UHSRUWHG LW WR WKH SROLFHV

~â~Ø„ˆ}ØŁ‚mØŁæiÆŁ‡nØ ä„ºŁjŒƒØymØäî‚ßiØ…àâiØð~Æfl SRX“\…KjQPuQ8u,L“ \ZqQ8ŽWLQKP\DX“ODL“SL SRSHVDLQWORUGELJQHZ VHOHFWIROORZ16,7 U7KH QHZ SRSH KDV EHHQ HOHFWHGV

Š‚å‡ßŁymØ~àâ‚iàâ ~àyØ~mØ…àâiØð~Æfl “…PŽ o>j WLQSyKP~JR SHL“SLQODL“SL EHHIPHDW LPSRUW10/2%- SURKLELWIROORZ16,7 U%HHI LPSRUWV KDYH EHHQ EDQQHGV

ä„jŒàŁ…àâiØŽŁ‚ƒØfl \H Q8zODL““zXQPŽ ZDWHU EDWKHIROORZIXUWKHU)87 U,VP JRLQJ WR WDNH D VKRZHU QRZV

‡ymØŁiàâ y„ߣ†mØzâyØî~}Ø…àâiØ~ÞyƒØfl >…GuQJR W…\…ZLQ W8RX“S\DQODL“SDGŽ QHZV2%- ODZHQWHU EULQJRXWUHWXUQIROORZ,032571)87 U7KH\ PDGH WKH R4FLDO DQQRXQFHPHQW RQ WKH QHZVV

‡ªî~}Øä„ßiØä}yß ‚‡à…àâi؁ªŁfl ,X S\DQ \DX“QHGD P…,tODL“S8 UHWXUQ DUULYHVWD\1)8710/ 1(*NQRZIROORZ1(* U, GLGQVW UHDOL]H WKDW KH ZDV DOUHDG\ EDFNV

‚ìyØzߣ…àâiØ~Þ KPD“W8jODL“SD QRWHNHHSIROORZ,03257 U7DNH QRWH RI WKDWV

|ÞŁnßjæynØäƒßiØiàâ ‡yØ~nØ…àâiØyƒØfl G…]DJDQ W…\DX“NR ,D“S\L“ODL“WŽ KRVWDJH RQH&/)2%- NLOOGLVFDUGIROORZ1)87 U7KH\ NLOOHG RQH KRVWDJHV

7KH IROORZLQJ SRVWYHUEDO DX[LOLDULHV DUH ERXQG LQ WKH VWDQGDUG ODQJXDJH LQ WKH VHQVH WKDW WKH\ FDQQRW RFFXU DORQH DV RQHZRUG DQVZHUV ZLWK WKH DX[

LOLDU\ PHDQLQJ 7KH QHJDWLRQ PDUNHU RFFXUV EHWZHHQ WKH PDLQ YHUE LQ WKH VWDQGDUG ODQJXDJH LQ WKH SDWWHUQ 9P… 32679 EXW VRPH YDULHWLHV DQG VSHDN HUV SUHIHU WKH SDWWHUQP… 9 32679 )XQFWLRQDOO\ WKLV JURXS RI SRVWYHUEDO DX[LOLDULHV H[SUHVVHV GLUHFWLRQDO DVSHFWXDO DQG EHQHIDFWLYH PHDQLQJV 7KHLU IXQFWLRQ LV JHQHUDOO\ WUDQVSDUHQW IURP WKH OH[LFDO VHPDQWLFV

la ¶FRPH• 7KH GLUHFWLRQDO YHUE DUFRPHV LQGLFDWHV D PRYHPHQW WRZDUGV WKH VSHDNHU RU WKH FHQWHU RI LQWHUHVW ,Q QRQVSDWLDO FRQWH[WV LW KDV DVSHFWXDO IXQFWLRQ LQGLFDWLQJ D FKDQJH RI VWDWH

ß‡ßî~}Øäjí…ßyƒØfl ED>DE\DQ N8æODGŽ LQWHUSHUWHU FDOOFRPH1)87 U+H EURXJKW DQ LQWHUSUHWHU DORQJV

äjÞiØoºå †ƒØ…ßä}ßØfl N8DX“V8ZŽ o ZŽOD Qæ QRRGOHV EX\FRPH &63 U*UDE VRPH QRRGOHV RQ WKH ZD\V

zm؇…àâ înØ‚…߁ªŁfl W8LQ>…OR S8\L“P…ODE WKLQNDV EH1(*FRPH1(* U,W GLGQVW WXUQ RXW DV H[SHFWHGV

ŠmØŠßŁŠæiÆŁoâæŁàâmØmæ înØ…ßyƒØfl “LQ“j “…Qu]zXQ QDLQÔDQ S8\L“ODGŽ SRZHU ELJPRVW FRXQWU\ EHFRPH1)87 U,W KDV EHFRPH WKH PRVW SRZHUIXO FRXQWU\V

Šßoƃ抺å†mØàâmØmæ înØ…ßyƒØfl “DV8L\DQ“…S8ZŽ b ZLQ QDLQÔDQ S8\L“ODGŽ $6($1JURXS HQWHU FRXQWU\ EHFRPH1)87 U,W KDV EHFRPH DQ $6($1 PHPEHU FRXQWU\V

nàyØ|ßyØi ‚äî~ßmØŁ…å…߁ªŁfl VHL“GD“Ni P…S\jXQOŽ oODE VSLULW6%- 1(*FKDQJHFRPH1(* U7KH PLQGVHW GRHVQVW FKDQJH DORQJV

θwà ðwà ¶JR• 7KH RSSRVLWH RIODUFRPHV,Zj UJRV LQGLFDWHV D PRYHPHQW DZD\ IURP WKH FHQWHU RI LQWHUHVW ,Q QRQVSDWLDO FRQWH[W WKLV DX[LOLDU\ LV XVHG WR LQGLFDWH D FKDQJH RI VWDWH

ä„ßkÞä~Œßi؇ºßŁð~Æfl \æoJD S\DX“,ZjEL GLVHDVH GLVDSSHDUJR16,7 U,VP FXUHG RI WKH GLVHDVHV

ä}äißmØŁ‡ºßŁð~Æfl QH NjXQ>ZjEL VWD\ JRRGJR16,7 U+HVV ZHOO DJDLQ QRZV

‡i؇߇ºßŁð~Æfl ,Ž“,D>ZjEL UHOLHYHGJR16,7 U+H IHHOV EHWWHU QRZV

}ߣ…s؇ºßŁð~Æfl QjOŽ>ZjEL XQGHUVWDQGJR16,7 U8QGHUVWRRG QRZV

„ìmØŁ‡ºßŁð~Æfl ïuQ>ZjEL FOHDUJR16,7 U,WVV DOO FOHDU QRZV

iâ}؇ºßŁð~Æfl NRXQ>ZjEL DOOJR16,7 U,WVV DOO XVHG XSV

‡ª‡ßŁ ynØäƒßiØi …ªoàâŁîn؇ºßŁyƒØfl ,~ ,j W…\DX“Ni OX]z S8\L“,ZjGŽ ’(3 VRQ RQH&/)6%- SHUVRQEDG EHJR1)87 U2QH RI KHU VRQV EHFDPH D EDQGLWV

Šiàâ ä}…ƒØi…߇ºßŁyƒØfl “…NR QpOŽJi OD>ZjGŽ ROGHUEURWKHU GD\PLGGOHIURP FRPHJR1)87 U%URWKHU FDPH E\ WKLV DIWHUQRRQ EXW KH LV JRQH QRZV

iä…Łiàâ äjí‡ºßŁyƒØfl N8…OqJR N8æ>ZjGŽ FKLOG2%- FDOOJR1)87 U7KH\ WRRN WKH FKLOG DORQJ ZLWK WKHPV

䇇ºßŁð~Æfl ,H>ZjGŽ GLHJR1)87 U6KH GLHGV

ä‚ç‡ºßŁyƒØfl Pp>ZjGŽ IRUJHWJR1)87 U, IRUJRWV

ne ¶VWD\• 7KH SRVWYHUEDO DX[LOLDU\QHUVWD\V LQGLFDWHV DQ RQJRLQJ VLWXDWLRQ VLPLODU WR WKH SURJUHVVLYH LQ (QJOLVK 8QOLNH WKH SURJUHVVLYH LW LV QRW UHVWULFWHG WR DFWLYLWLHV DQG FDQ RFFXU ZLWK VWDWLYH YHUEV DV ZHOO

äiŒßmØŁ‡ßŁäyº o—î~ä}yƒØfl QjXQ>jGZH V8DQGi S\iQHGŽ VWXGHQW3/ GHVLUH VKRZVWD\1)87 U7KH VWXGHQWV DUH GHPRQVWUDWLQJV

iı}Ø‚ {Æ‚ìßänßmØçä}‚ƒØfl Q…Pi GLKPD ViXQQHPŽ ) WKLVDW ZDLWVWD\)87 U, ZLOO EH ZDLWLQJ KHUHV

ä‚çä}yƒØfl PpQHGŽ IRUJHWVWD\1)87 U, GRQVW UHPHPEHUV

nàyØoàâŁä}yƒØfl VHL“V8zQHGŽ KHDUWEDGVWD\1)87 U+HVV DQJU\V

â~Ø„ìmØnä}ð~Æfl \RX“ïLQ ViQHEL PRYLH EHJLQVWD\16,7 U7KH 1OP KDV VWDUWHG DOUHDG\V

‚mØŁŠ…ìsØçä„ßiØä}ð~Æfl PuQ “…KOŽ b \DX“QHEL )$0 WXUQ DUULYHVWD\16,7 U,WVV \RXU WXUQ QRZV

tʰà ¶NHHS• 7KH YHUEW8jUNHHSV LV XVHG DV DX[LOLDU\ WR GHQRWH DQ DFWLYLW\ WKDW JRHV RQ RU LV GRQH ZLWK DQ RQJRLQJ UHVXOW 2IWHQ WKLV DX[LOLDU\ LQYROYHV D FRQQRWDWLRQ RI UGR LQ DGYDQFH GR QRZ VR WKDW RQH GRHVQVW KDYH WR ZRUU\ DERXW LW ODWHUV 6LWXDWLRQV GHVFULEHG E\W8jUNHHSV DUH JHQHUDOO\ VHHQ DV SRWHQWLDOO\ FKDQJ LQJ LQ WKH IXWXUH DQG UHYHUVLEOH 7KLV LV LQ FRQWUDVW WROD “UIROORZV ZKLFK

LPSOLHV LUUHYHUVLELOLW\ DQG GH1QLWHQHVV ,Q PRVW FRQWH[WV WKLV DX[LOLDU\ LV QRW YRLFHG

iı}ØäyßØ ‚nߣàâmØäyß灪Łfl ‚â}Ø Š‚ŒßŁæiÆŁ nߣzߣ…àâfl Q…Qæ P…VjQDLQGæbE PyXQ “…P\j8u VjW8jOy 0 1(*HDWFDSDEOH&21751(* VQDFN DORW HDWNHHS68% U, FDQVW HDW DQ\PRUH EHFDXVH , KDYH HDWHQ ORWV RI VZHHWVV

‡ªmƒØjŒmØŁoÆ‚ìß ~àâiØoæ äjŒŁzߣyƒØfl ,…ÔŽ8uQ]LKPD SDL“V8DQ Q8uW8jGŽ IULHQG/2&DW PRQH\ WRPRUURZNHHS1)87 U, ERUURZHG VRPH PRQH\ IURP D IULHQGV

…iØ‚ìy؆ƒØzߣð~ÆŁð~Æ…ßŁfl OŽ“KPD“ ZŽW8jSuEL Oj WLFNHW EX\NHHS1QLVKHG16,7 34 U+DYH \RX ERXJKW WKH WLFNHWV"V

pè ¶JLYH• 3RVWYHUEDOSqUJLYHV LQWURGXFHV D EHQH1FLDU\ WR DQ H[SUHVVLRQ GHQRWLQJ D SHU VRQ IRU ZKRVH VDNH RU RQ ZKRVH EHKDOI WKH DFWLYLW\ LV GRQH 7KH EHQH1FLDU\ FDQ EH WKH UHFLSLHQW RI DQ REMHFW RU PRUH JHQHUDOO\ WKH SHUVRQ SUR1WLQJ IURP WKH DFWLYLW\ 7KH XVH RI SRVWYHUEDO EHQHIDFWLYHSqUJLYHV LV QRW UHVWULFWHG WR WUDQVLWLYH YHUEV 7KLV DX[LOLDU\ LV QHYHU YRLFHG

‡ªiàâ ~àâiØoæ ~àâ‚ä~ŁªŁ…ߣfl ,~JR SDL“V8DQ SyP…SqE Oj ’(32%- PRQH\ VHQG1(*JLYH1(* 34 U$UHQVW \RX VHQGLQJ KHU DQ\ PRQH\"V

‚mØŁ ‚ŠßŁ„mØ mÞ‡ºßŁä~Ł‚ƒØfl PuQ P…“j\LQ ÔD ,ZjSqPŽ )$0 1(*IUHHLI )$0 JRJLYH)87 U,I \RX DUH QRW IUHH , ZLOO JR IRU \RXV

7KH IROORZLQJ SRVWYHUEDO PRGDO DX[LOLDULHV DUH ERXQG LQ WKH VHQVH WKDW WKH QHJDWLRQ SDWWHUQ LVP… 9 32679 6RPH YDULHWLHV VXFK DV VRXWKHUQ %XUPHVH SUHIHU WKH SDWWHUQ 9P… 32679 IRU DOO H[FHSW IRU ,tQ URXJKWV ,Q VRPH YD ULHWLHV WKH PRGDO DX[LOLDULHV RI WKLV JURXS FDQ DOVR EH XVHG DV RQHZRUG

DQVZHUV WKDW LV WKH\ EHKDYH OLNH IUHH IRUPV VHH EHORZ 9RLFLQJ LQ WKLV JURXS RFFXUV PRUH UHJXODUO\ ZKHQ WKH\ DUH XVHG DV ERXQG IRUPV ,Q WKH YD ULHWLHV WKDW WUHDW WKHP DV IUHH IRUPV YRLFLQJ GRHV QRW QRUPDOO\ RFFXU

θín ðín ¶SURSHU VXLWDEOH DSSURSULDWH VKRXOG RXJKW• 7KH YHUE,tQ UEH DSSURSULDWH VXLWDEOHV GRHV QRW RFFXU RQ LWV RZQ LQ &ROOR TXLDO %XUPHVH EXW RQO\ RQ FRPSRXQGV VXFK DV,tQWæUEH DSSURSULDWHV $V D SRVWYHUEDO DX[LOLDU\ LW RFFXUV DV D ERXQG IRUP LQGLFDWLQJ WKDW LW ZRXOG EH DSSURSULDWH IRU WKH VXEMHFW WR GR DQ DFWLYLW\ 7KH SOXUDO PDUNHU Qi 8i LV XVXDOO\ SODFHG EHWZHHQ WKH PDLQ YHUE DQG WKLV DX[LOLDU\ WKRXJK LW PD\ RFFXU DIWHU WKH DX[LOLDU\ 7KLV DX[LOLDU\ PD\ RFFXU RQ LWV RZQ DV D RQHZRUG DQVZHU WKRXJK WKH XVH ZLWK WKH PDLQ YHUE LV SUREDEO\ SUHIHUUHG

‡ªyà⠊凅àâ …â~؇mØçyƒØfl ,XGy “Ž o>…OR ORX“,tQGŽ $663/ WKDWDV GRSURSHU1)87 U7KH\ VKRXOG GR LW OLNH WKDWV

~ÆŠßn}nØ iŒmØç‡âæŁ‡mØ燅ߣfl SL“DV…QL“ QtQ,zXQ>tQ>…Oj 35V\VWHP LPSOHPHQWSURSHU1)8734 U6KRXOG WKH 35 V\VWHP EH LPSOHPHQWHG"V

‚ì}Ø‚ì}Ø äoŁnn؇mØçyƒØfl KPDQKPDQ V8qVL“,tQGŽ FRUUHFWFRUUHFW PHGLFLQHFKHFNSURSHU1)87 U<RX VKRXOG KDYH UHJXODU PHGLFDO FKHFNXSVV

yɛ̀ ¶GDUH• 7KH OH[LFDO YHUE\Ž o PHDQV UGDUHV DQG WKLV PHDQLQJ LV UHWDLQHG LQ WKH DX[LOLDU\ IXQFWLRQ

‡ª ynØäƒßiØzå ‚‡ºßŁ„偪Łfl ,X W…\DX“W8Ž o P…,Zj\Ž oE RQH&/)RQO\ 1(*JRGDUH1(* U+H GRHVQVW GDUH WR JR DORQHV

ä‡jŒßä~ÞiØ äî~ß„åyƒØfl ,H8DEDX“ S\æo\Ž oGŽ FHUWDLQO\ VSHDNGDUH1)87 U, GDUH VD\ IRU VXUHV

nº}Ønߣ„åyƒØfl V~Q]j\Ž oGŽ ULVNGDUH1)87 U, GDUH WDNH WKH ULVNV

…ªä„ì‚ìß niߣäî~ß„å‡…ßŁfl OXïpKPD ]…Jj S\æo\Ž o>…Oj SHUVRQLQIURQWDW ODQJXDJH VSHDNGDUH1)8734 U’R \RX GDUH VSHDN LQ SXEOLF"V

taʔ daʔ ¶DEOH VNLOOHG NQRZ KRZ• 7KLV DX[LOLDU\ LQGLFDWHV WKDW WKH VXEMHFW KDV WKH NQRZKRZ RU LV VNLOOHG HQRXJK WR GR WKH DFWLYLW\ GHVFULEHG E\ WKH PDLQ YHUE ,W IUHTXHQWO\ GHQRWHV DQ DFTXLUHG RU OHDUQHG VNLOO

iı}ØäyßØ yâyØniߣ ‚äî~ßyy؁ªŁfl Q…Qæ W…\RX“]…Jj P…S\æoGD“S8 0 &KLQDODQJXDJH 1(*VSHDNDEOH1(* U, GRQVW VSHDN &KLQHVHV

iߣä‚ßmØŁyyØ…ßŁfl Nj PjXQGD“ Oj FDU GULYHDEOH 34 U’R \RX NQRZ KRZ WR GULYH"V

nain ¶FDSDEOH• 7KH OH[LFDO YHUEQDLQPHDQV UZLQV $V SRVWYHUEDO DX[LOLDU\ LW LQGLFDWHV D SK\VLFDO RU PHQWDO FDSDELOLW\ RU DELOLW\ WR GR WKH DFWLYLW\ E\ WKH PDLQ YHUE ,Q VRPH FRQWH[WV LW GHVFULEHV D JHQHUDO SRVVLELOLW\ WR GR VRPHWKLQJ RU IRU VRPHWKLQJ WR KDSSHQ

ß‚ì ‚nߣàâmØäyß灪Łfl EDKPi P…VjQDLQGæbE ZKDW5(675 1(*HDWFDSDEOH&21751(* U, FDQVW HDW DQ\WKLQJ DQ\PRUHV

…‚ØŁä…łßiØàâmØ䇣…ߣfl OjQ ïDX“QDLQ>q Oj ZD\ ZDONFDSDEOH\HW 34 U&DQ \RX JR RQ ZDONLQJ"V

‚}iØî}Ø ‚à⣄ºßàâmØyƒØfl P…QŽ“S8\DQ Pz \ZDQDLQGŽ WRPRUURZ VN\ UDLQFDSDEOH1)87 U7RPRUURZ LW PD\ UDLQV

ʔà ¶IUHH• 7KH OH[LFDO YHUE“j H IUHHV LV XVHG DV SRVWYHUEDO DX[LOLDU\ WR H[SUHVV WKDW WKH VXEMHFW KDV WKH WLPH WR FDUU\ RXW WKH DFWLYLW\ GHVFULEHG E\ WKH PDLQ YHUE ,W LV PRUH FRPPRQ LQ QHJDWHG DQG LQWHUURJDWLYH WKDQ GHFODUDWLYH FRQ WH[WV

iı}ØäyßØ ‚…ߊߣªŁfl Q…Qæ P…OD“jE 0 1(*FRPHIUHH1(* U, GRQVW KDYH WKH WLPH WR FRPHV

‡ª {Ænߊâ~Ø ‚yØŠßŁä‡ŁªŁfl ,X GL VD“RX“ P…S8D““j>qE WKLV ERRN 1(*UHDGIUHH\HW1(* U+H KDVQVW KDG WKH WLPH WR UHDG WKLV ERRN \HWV

nß„mØŁäyº ïisØçŠßŁð~Æ…ßŁfl V…\uQGZH Qt“jEL Oj OLVW3/ ORRNIUHH16,7 34 U’R \RX KDYH WLPH QRZ WR ORRN DW WKH OLVWV"V

Šjâ ïisØçŠßŁ‚…ߣfl “…N8~ Qt“jP…Oj QRZ ORRNIUHH)8734 U:RXOG \RX KDYH WLPH WR ORRN DW LW QRZ"V

kʰàin ¶RUGHU• 7KH SRVWYHUEDO FDXVDWLYHN8jLQURUGHU FRPPDQGV EHKDYHV OLNH D ERXQG DX[ LOLDU\ LQ WKDW WKH QHJDWLRQ SDWWHUQ LV UHJXODUO\P… 9 32679 EXW LV PRUH OLNH D IUHH IRUP LQ WKDW LW FDQ RFFXU DORQH DV D RQHZRUG DQVZHU DQG FDQ LQ VRPH FRQWH[WV EH VHSDUDWHG IURP WKH PDLQ YHUE E\ WKH SXUSRVLYH VXERUGLQD WRUS8yEy 7KLV DX[LOLDU\ LV QHYHU YRLFHG ,Q 8SSHU 0\DQPDU WKLV DX[LOLDU\ LV XVHG WR H[SUHVV LQGLUHFW FDXVDWLRQ ERWK SHUPLVVLYH UDOORZV DQG MXVVLYH URUGHUV ZKLOH LQ /RZHU 0\DQPDU LW LV IRU PDQ\ VSHDNHUV UHVWULFWHG WR MXV VLYH H[SUHVVLRQV WKH SHUPLVVLYH FDXVDWLYH EHLQJ H[SUHVVHG E\ SUHYHUEDO q UJLYHV VHH DERYH

nnØ‡ßŁäyº ‡ªiàâ kàyØ‚ìß „~ØjàâmØŁyƒØfl VL“,jGZH ,~JR JHL“KPD \D“N8jLQGŽ VROGLHU3/ ’(32%- FKHFNSRLQWDW VWRSRUGHU1)87 U7KH VROGLHUV VWRSSHG KLP DW WKH FKHFNSRLQWV

â}ØŁæiÆŁäiŒßmØŁzå‚ìß â}ØŁ‚‡âæŁjàâmØŁªŁfl S8zXQ8u8jXQGŽ oKPD S8zXQ P…,zXQN8jLQE PRQDVWHU\LQVLGHDW SKRQH 1(*XVHRUGHU1(* U7KH\ GRQVW OHW \RX XVH WKH SKRQH LQ WKH PRQDVWHU\V

nj}ØŁiàâ ŠäïißmØŁïiߣjàâmØŁ…àâiØfl V…N8jQJR “…QjXQQjN8jLQODL“ FDPS2%- PDWWHUKHDURUGHUIROORZ U+DYH VRPHRQH UHSRUW WR WKH FDPSV

{àâm؁ßiàâ änßmØçjàâmØŁzߣ…ߣfl G…UDLQEDJR ViXQN8jLQW8j Oj GULYHU2%- ZDLWRUGHUNHHS 34 U’LG \RX DVN WKH GULYHU WR ZDLW"V

ä‚ßØ{ƒØäyºiàâ †yØ…nØn…nØ}ÆŁ~ÞŁ Š…ìî~jàâmØŁ„mØ Šä„Łƒª‚ƒØfl PæGŽGZHJR ZX“OL“V…OL“

PRGHO3/ 2%-

QDNHGQHDUO\ 10/SUHWW\ VKRZ RUGHULI

D3DLUWDNH )87

U,I \RX DVN WKH PRGHOV WR SRVH QHDUO\ QXGH \RX ZLOO EH FKDUJHG DFFRUGLQJ WR WKH ODZV

ß†ƒØjàâmØŁ…àâiØ…åfl ED ZŽN8jLQODL“ OŽ o ZKDW EX\RUGHUIROORZ &4 U:KDW GLG \RX DVN KLP WR EX\"V

‡ªiàâ ‚äjíjàâmØŁ~ށªŁfl ,~JR P…N8æN8jLQEDE ’(32%- 1(*FDOORUGHU,032571(* U, GLGQVW WHOO KHU WR FDOO KLPWR KDYH KLP FRPHV

pyan-bi/byan-bi ¶GRDJDLQ• 7KLV SRVWYHUEDO DX[LOLDU\ FRQVWUXFWLRQ KDV OLPLWHG V\QWDFWLF SRVVLELOLWLHV DQG UDWKHU LGLRPDWLF PHDQLQJ WKH OH[LFDO YHUES\DQUUHWXUQV LQ FRPELQDWLRQ ZLWK WKH UQHZ VLWXDWLRQV PDUNHU SL ELLQGLFDWHV WKH VSHDNHUV DWWLWXGH WRZDUGV WKH UHRFFXUUHQFH RI D VLWXDWLRQ ZKLFK LV IHOW WR EH WRR HDUO\ RU WRR IUHTXHQW RU DQ DGGLWLRQDO QXLVDQFH 7KH FRQVWUXFWLRQ 9S\DQELH[SUHVVHV GLVPD\ RU VXU SULVH RI WKH VSHDNHU DERXW WKH VLWXDWLRQ 7KH QHJDWHG IRUPP… 9 S\DQ1(* UQRW 9 DJDLQV ZKHQ RQH ZDV VXSSRVHG WR GR VRPHWKLQJ 7KLV SRVWYHUEDO DX[LOLDU\ LV D ERXQG IRUP DQG LW LV YRLFHG LQ DSSURSULDWH HQYLURQPHQWV

‡ª ‚â}Ønߣî~}Øð~Æfl ,X PyXQ VjE\DQEL VZHHWV HDWUHWXUQ16,7 U+HVV HDWLQJ VZHHWV DJDLQV

Šà‚Ønß ‚…â~Øî~}؁ªŁfl “HLQ]D P…ORX“S\DQE KRXVHWH[W 1(*GRUHWXUQ1(* U2QFH DJDLQ KH GLGQVW GR KLV KRPHZRUNV

ä…‡æy‚ŒàŁ äî~ßmØŁî~}Øð~Æfl OH>DQ W…P\z S\jXQE\DQEL WRQH RQHNLQG FKDQJHUHWXUQ16,7 U+HVV FKDQJLQJ WKH WXQH RSLQLRQ DJDLQV

ä…î~mØŁyàâiØð~ÆŁ ‚à⣄ºßî~}Øð~Æfl OHE\uQ WDL“Su Pz\ZDE\DQEL ZLQGVWURQJ FROOLGH6(4 VN\UDLQUHWXU16,7 U7KHUH LV RQFH DJDLQ VWURQJ ZLQG DQG LWVV UDLQLQJV

iàâƒØ‡àyßoàâ…àâ ‡à~Ø‚„ìàî~}؁ªŁfl NR ,tGD V8ROy ,HL“ P…ïtE\DQE ERG\ NQRZ1)8710/ VD\68% YHU\ 1(*H[LVWUHWXUQ1(* U7KHUH LVQVW PXFK WKDW , NQRZV

†‚ØŁ}sØŁäïiiºåînØ…àâ ‚oâæŁî~}؁ªŁfl ZQQŽ oQHNZŽ o S8\L“Oy P…V8zXQE\DQE VDGJULHYH EH68% 1(*HQGUHWXUQ16,7 U2QFH DJDLQ , IHHO VR VDGV

2QH VHW RI SRVWYHUEDO DX[LOLDULHV DUH IUHH IRUPV WKDW LV WKH\ FDQ EH VHSDUDWHG IURP WKH PDLQ YHUE E\ VXERUGLQDWRUV DQG WKH QHJDWLRQ SDUWLFOH 9RLFLQJ GRHV QRW XVXDOO\ RFFXU ZLWK WKH IUHH IRUPV 7KH\ FDQ DOVR RFFXU DV VWDQGDORQH DQVZHUV WR TXHVWLRQV FRQWDLQLQJ WKHVH DX[LOLDULHV

yá ¶FDQ PD\• 7KH OH[LFDO YHUE\i UJHWV RFFXUV DV D IUHH SRVWYHUEDO DX[LOLDU\ H[SUHVVLQJ D JHQHUDO SRVVLELOLW\ RU DEVHQFH RI REVWDFOHV WR GR VRPHWKLQJ ,Q WKH VWDQ GDUG ODQJXDJH LW LV DOZD\V VHSDUDWHG IURP WKH PDLQ YHUE E\ WKH VXERUGLQDWRU Oy

jxïisØç…à℅ߣfl N8…Qi QtOy \i Oj PRPHQW ORRN68% JHW 34 U&DQ , KDYH D ORRN"V

‚}iØî}Ø iı}Ø‚…ß…àâ‚„ªŁfl P…QŽ“S8\DQ Q…Pi ODOy P…\iE WRPRUURZ ) FRPH68% 1(*JHW1(* U7RPRUURZ , FDQVW FRPHV

~âæìà~Ø…â~Øm}ØŁäyº‚ìßä„ß ‡âæŁ…à℅ߣfl SRXQKQHL“ÔjQGZHKPD \æo ,zXQOy \i Oj SULQWLQJ3/DW ZKDWDERXW XVH68% JHW 34 U&DQ WKLV EH XVHG LQ SULQWLQJ EXVLQHVV"V

IDFHERRN‚ìß ß‚ì…â~Ø…àâ‚„ªŁfl S8pERX“KPD EDKPi ORX“Oy P…\iE )DFHERRNDW ZKDW5(675 GR68% 1(*JHW1(* U<RX FDQQRW GR DQ\WKLQJ RQ )DFHERRNV

‡ªià⠊ߣià⣅àâ„‚…ߣfl ,~JR “jNzOy \iP…Oj ’(32%- GHSHQG68% JHW)8734 U&DQ ZH FRXQW RQ KLP"V

nàyØjænߣjŒiØä…Łiàâ äî~ßî~…àâ„‚…ߣfl VHL“N8DQ]j8Ž“OqJR S\æoS\iOy \iP…Oj KHDUWIHHO10/’,02%- VSHDNVKRZ68% JHW)8734 U&RXOG \RX WHOO XV DERXW \RXU IHHOLQJV"V

pì ¶ILQLVKHG• 7KLV DX[LOLDU\ LQGLFDWHV WKDW DQ DFWLYLW\ KDV EHHQ FDUULHG RXW FRPSOHWHO\ ,W FDQ EH XVHG RQO\ ZLWK YHUEV WKDW KDYH D FRQFHLYDEOH HQGSRLQW WKDW LV LW GRHV QRW RFFXU ZLWK VWDWLYH YHUEV 3RVWYHUEDOSuU1QLVK GV LQ WKLV IXQFWLRQ LV QRW QRUPDOO\ YRLFHG ,W FDQ LWVHOI EH PRGL1HG E\ DQ DX[LOLDU\ PRVW IUHTXHQWO\ ,Zj >Zj UJRV WR LQWHQVLI\ WKH QRWLRQ RI FRPSOHWLRQ 0RVW IUHTXHQWO\SuU1Q LVKHGV LV FRPELQHG ZLWK WKH VWDWXV PDUNHU SL ELU16,7V LQGLFDWLQJ D FKDQJHG VLWXDWLRQ WKDW KDV FRPH DERXW

{Æiߣ ïisØçð~ÆŁ‡ºßŁð~Æfl GL Nj Qt Su>ZjEL WKLV 1OP ORRN 1QLVKHGJR16,7 U, KDYH DOUHDG\ VHHQ WKLV PRYLHV

†}ØæiÆŁuß}iàâ…sØŁ ymØð~ÆŁð~Æfl ZXQ8uW8DQiJR OŽ o WLQSuEL PLQLVWHUSODFH2%- DOVR SXWRQ1QLVKHG16,7 U:H KDYH DOUHDG\ UHSRUWHG WR WKH 0LQLVWU\ DV ZHOOV

koun ¶DOO• 7KH OH[LFDO YHUENRXQUEH DOO H[KDXVWLYHV FDQ EH XVHG DV SRVWYHUEDO DX[LOLDU\ ZLWK UH[KDXVWLYHV IXQFWLRQ LQGLFDWLQJ WKDW WKH DFWLYLW\ GHVFULEHG E\ WKH PDLQ YHUE KDV EHHQ FDUULHG RXW E\ DOO VXEMHFWV RU RQ DOO REMHFWV LQYROYHG ,W FDQ RFFXU ZLWK WKH SRVWYHUEDO ,Zj >Zj UJRV WR LQWHQVLI\ WKH PHDQLQJ RU ZLWKOD UFRPHV WR H[SUHVV D SURFHVV 9RLFLQJ GRHV QRW RFFXU RQ WKLV DX[LOLDU\ 0RVW IUHTXHQWO\NRXQUDOOV LV FRPELQHG ZLWK WKH VWDWXV PDUNHU SL ELU16,7V LQGL FDWLQJ D FKDQJHG VLWXDWLRQ WKDW KDV FRPH DERXW 7KLV SRVWYHUEDO DX[LOLDU\ DOVR RFFXUV ZLWK WKH QHJDWLRQ PDUNHUP… ZLWK RU ZLWKRXW WKH VXERUGLQDWRU OyRQ WKH PDLQ YHUE

‚â}Øäyº nߣiâ}؇ºßŁð~Æfl PyXQGZH Vj NRXQ>ZjEL VZHHWV3/ HDW DOOJR16,7 U$OO WKH VZHHWV KDYH EHHQ HDWHQ XSV

‡ªyàâ ‡ºßŁiâ}Øð~Æfl ,XGy ,Zj NRXQEL $663/ JR DOO16,7 U7KH\VYH DOO OHIWV

~àâiØoæäyº nߣ‚iâ}؁ªŁfl SDL“V8DQGZH Vj P…NRXQE PRQH\3/ HDW 1(*DOO1(* U, KDYH PRUH PRQH\ WKDQ , FRXOG XVHV

‡ªäiŒŁpªŁäyº o~Ø‚iâ}؁ªŁfl ,~ Qq]GZH V8D“ P…NRXQE ’(3 JUDWLWXGH3/ SD\EDFN 1(*DOO1(* U, DP JUHDWO\ LQGHEWHG WR KLPV

%HVLGHV YHUEDO DX[LOLDULHV D YHUE SKUDVH DOVR FRQWDLQV YHUEDO PDUNHUV 7KHVH GL3HU IURP WKH DX[LOLDULHV LQ QRW EHLQJ DVVRFLDWHG ZLWK OH[LFDO YHUEV QHLWKHU GLDFKURQLFDOO\ QRU V\QFKURQLFDOO\ 7KH\ RQO\ KDYH JUDPPDWLFDO IXQFWLRQ DQG FDQQRW EH WUDFHG WR DQ\ OH[LFDO LWHPV LQ WKH ODQJXDJH 2QH RI WKH FRPPRQ YHUEDO PDUNHUV LV WKH QHJDWRUP…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

1HJDWHG SUHGLFDWHV DOZD\V RFFXU ZLWK WKH QHJDWLYH VWDWXV PDUNHU S8 E LQ LQGHSHQGHQW FODXVHV ,Q FROORTXLDO VSHHFK WKH SUHYHUEDO QHJDWRUP… LV VRPHWLPHV GURSSHG WKH QHJDWLRQ EHLQJ H[SUHVVHG RQO\ E\ WKH SRVWYHUEDO QHJDWLYH VWDWXV PDUNHU S8 E

‚…àâiØjŒm؁ªŁfl P…ODL“Q8LQE 1(*IROORZZDQW1(* U, GRQVW ZDQW WR FRPH DORQJV

nߣ…àâ‚„ªŁfl VjOy P…\iE HDW68% 1(*JHW1(* U<RX FDQVW HDW LWV

‚‡ºßŁ…àâ ‚„ªŁfl P…,ZjOy P…\iE 1(*JR68% 1(*JHW1(* U<RX FDQVW QRW JRV U<RX GH1QLWHO\ KDYH WR JRV

7KHUH LV VRPH YDULDWLRQ LQ WKH SRVLWLRQ RI WKH QHJDWRUP… WKRXJK RW DOO SRV VLELOLWLHV DUH DFFHSWDEOH WR DOO VSHDNHUV DQG WKH YDULDWLRQ PD\ EH UHVWULFWHG WR UHJLRQDO XVDJH

ääi‚ì ‚…â~ØjàâmØŁyßfl ääi‚ì …â~Ø‚jàâmØŁyßfl S8HS8HJi P…ORX“N8jLQGD S8HS8HJi ORX“P…N8jLQGD ’DGG\6%- 1(*GRRUGHU

1)8710/ ’DGG\6%- GR1(*RUGHU

1)8710/ U%XW ’DGG\ GLGQVW DVN PH WR GR LWV

‚äî~ßyy؁ªŁfl äî~ß‚yy؁ªŁfl P…S\æoGD“S8 S\æoP…WD“S8 1(*VSHDNDEOH1(* VSHDN1(*DEOH1(* U, GRQVW NQRZ ZKDW WR VD\V

7KH PDUNHU Qi 8i LV RSWLRQDOO\ DGGHG DIWHU WKH YHUE LI WKH VXEMHFW KDV SOXUDO UHIHUHQFH LQFOXGLQJ FROOHFWLYH QRXQV 7KH SOXUDO PDUNHU FDQ DOVR EH XVHG LI WKH VXEMHFW LV QRW RYHUWO\ H[SUHVVHG EXW XQGHUVWRRG WR KDYH SOXUDO UHIHUHQFH :LWK SRVWYHUEDO DX[LOLDULHV WKH SOXUDO PDUNHU Qi 8i XVX OO\ RFFXUV DIWHU WKHVH EXW LQ VRPH FDVHV LW LV SODFHG EHWZHHQ WKH PDLQ YHUE DQG WKH DX[LOLDU\ VHH VHFWLRQ 7KH XVH RI Qi 8i LV PRUH FRPPRQ LQ IRUPDO VSHHFK WKDQ LQ WKH FROORTXLDO ODQJXDJH

iı}Ø‚yàâ‚à‡ßŁnâi ä}ßiØŠ~yØ j„ÆŁ‡ºßŁïi‚ƒØfl Q…PiGy Pt>j]~Ji QDX“ “…SD“ N8…\u ,Zj8iPŽ )$663/ IDPLO\6%- EHKLQG ZHHN MRXUQH\ JR3/)87 U0\ IDPLO\ ZLOO JR RQ D WULS QH[W ZHHNV

ˆàâ…mØ‚ƒßŁ „}ØînØä}ïiyƒØfl KR OLQP…\j \DQ S8\L“QH8iGŽ WKDW KXVEDQGZLIH TXDUUHO EHVWD\3/1)87 U7KDW PDUULHG FRXSOH LV KDYLQJ D 1JKWV

ˆàâ‚ìß …ªäyºnâ䆣ä}ïiyƒØfl KRKPD OXGZH V~ZqQH8iGŽ WKDWDW SHUVRQ3/ DVVHPEOHVWD\3/1)87 U3HRSOH DUH DVVHPEOLQJ RYHU WKHUHV

ƒØ‡ºßŁïi…åfl EŽ ,Zj8i OŽ o ,17(5 JR3/ &4 U:KHUH GLG \RX JX\V JR"V

ß…â~Øä}ïi…åfl ED ORX“QH8i OŽ o ZKDW GRVWD\3/ &4 U:KDW DUH WKH\ GRLQJ"V

z‚mØŁnߣð~ÆŁïið~Æ…ßŁfl W8…PuQ Vj Su8iEL Oj FRRNHGULFH HDW 1QLVK3/16,7 34 U+DYH \RX DOO 1QLVKHG \RXU PHDO"V

iŒ}ØŁ‚ßjŒ‚ØŁ‡ßïi~Þänfl QjQPD Q8jQ>D8iED]H KHDOWK\ ZHDOWK\3/,03257OHW U0D\ \RX DOO EH LQ JRRG KHDOWK DQG SURVSHURXVV

jŒnØyå燪}å sߣïi~Þänfl Q8L“WŽ b>XQŽ b Ñj8iED]H ORYHJHWSHUVRQZLWK HQFRXQWHU3/,03257OHW U0D\ \RX DOO JHW PDUULHG ZLWK \RXU EHORYHGV

7KH SRVWYHUEDO GLVSODFHPHQW PDUNHU N8Ž b JŽ b KDV D QXPEHU RI IXQFWLRQV UH ODWHG WR GLVSODFHPHQW LQ VSDFH DQG WLPH DQG LV KHUH JORVVHG DV UGLVSODFHPHQW PDUNHUV ’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

…ßjåçfl ODJŽ b FRPH’,63/ U&RPH KHUHV

iä…Łäyº Šà‚Ø‚ìßiŒ}ØjåçyƒØfl N8…OqGZH “HLQKPD QDQJŽ bGŽ FKLOG3/ KRXVHDW UHPDLQ’,63/1)87 U7KH FKLOGUHQ DUH OHIW EHKLQG DW KRPHV

‚}Ø{å…ߣ äî~ßjåçyåçniߣyjº}ØŁ „ìàyƒØfl PDQGŽ oOj S\æoJŽ bGŽ b ]…Jj W…N8Q ïtGŽ 0DQGHOD VSHDN’,63/1)87’(3 ODQJXDJH RQHZRUG H[LVW1)87 U7KHUH LV D VD\LQJ WKDW 0DQGHOD VSRNHV

ŠÆàâ…ßäïißmØç …ª ä‡ßmØŁäiŒßØ ä‡oâæŁjåçyƒØ…àâ :+2 äî~ßfl “LEROD8iXQ OX ,jXQ8æ ,HV8zXQJŽ bGŽ (ERODEHFDXVH SHUVRQ WHQWKRXVDQGEH\RQG GLH’,63/1)87

Oy GD“EŽ\X“HLQ“R S\æo 5(3 :+2 VSHDN

U:+2 VDLG WKDW WKHUH DUH RYHU GHDWKV EHFDXVH RI (ERODV

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

„ìà~Þ䇣yƒØfl ïtED>qGŽ H[LVW,03257\HW1)87 U7KHUHVV VRPH OHIWV

‚„ìàäyßç~ށªŁfl P…ïtGæbEDE 1(*H[LVW&2175,032571(* U7KHUHVV QRQH OHIWV

äißmØŁ~Þð~Æfl NjXQEDEL JRRG,0325716,7 U7KDWVV RN QRZV

1)87’(3 UHSRUW RQH&/) ZULWHVKRZ

,03257 U:ULWH D QRQUHIXWDEOH UHSRUWV

Š‡iØæiÆŁ‡ªiàâ àâä‡ä…Łnߣ„~Þ‚ƒØfl “…,Ž“Qu>XJR \R,HOq]j\iEDPŽ OLIHELJSHUVRQ2%- UHVSHFWUHVSHFWJHW,032571)87 U<RX KDYH WR UHVSHFW ROGHU SHRSOHV

nàyØjŒ~Þfl VHL“Q8iED KHDUWSXWGRZQ,03257 U7UXVW PHV

…ßn‚ØŁ~Þfl OD]jQED FRPHWU\,03257 U&RPH RQ RYHUV

‡ºßŁä‡~Þ…ßŁfl ,Zj ,HED Oj JR GLH,03257 34 U*R GURS GHDGV

äyßØ~Þäyßçfl WæEDGæb DGHTXDWH,03257&2175 U6WRSV

iªsÆàâ 䆣~Þ䇣yƒØ â}ØŁäyßmØ ‚oi؁ªŁfl NXÑLEy ZqED>qGŽ S8zXQ GDXQ P…V8Ž“S8 KHOSIRU IDU,03257\HW1)87 SKRQH HYHQ 1(*FRQQHFW1(* U+H GLGQVW HYHQ ERWKHU FDOOLQJ OHW DORQH FRPLQJ WR KHOSV

7KH VHFRQG EXW ODVW SRVLWLRQ LQ WKH YHUE SKUDVH LV RFFXSLHG E\ WKH DVSHFWXDO PDUNHUV 7KLV JURXS FRQVLVWV RI WKUHH PHPEHUV ZKLFK LQGLFDWH GL3HUHQW W\SHV RI VLWXDWLRQ FKDQJH RU FRQWLQXLW\ :KLOH WKH 1UVW WZR DUH RQO\ XVHG LQ WKH DVSHFWXDO IXQFWLRQ WKH ODVW DOVR RFFXUV LQ RWKHU W\SHV RI SKUDVHV LQ GL3HUHQW EXW UHODWHG IXQFWLRQV

θè ðè ¶\HW• 7KLV PDUNHU FDQ EH WUDQVODWHG DV UVWLOOV RU U\HWV ,W RFFXUV RQO\ ZLWK WKH QRQ IXWXUH DQG QHJDWLYH VWDWXV PDUNHUV WŽ GŽ DQG S8 E UHVSHFWLYHO\ DOVR ZKHQ

KDYLQJ IXWXUH UHIHUHQFH 7KH PDUNHU,q >q LQGLFDWHV WKDW D VLWXDWLRQ LV RQJR LQJ XQLQWHUUXSWHG DW WKH WLPH RI VSHDNLQJ ,W LV IUHTXHQWO\ FRPELQHG ZLWK WKH SRVWYHUEDO DX[LOLDU\ QHUVWD\V ZKLFK KDV D VLPLODU PHDQLQJ

~àâiØoæ ‚„ìà䇣ªŁfl SDL“V8DQ P…ït>qE PRQH\ 1(*H[LVW\HW1(* U, GRQVW KDYH DQ\ PRQH\ \HWV

‚}iØî}Ø {Æ‚ìß„ìà䇣yƒØfl P…QŽ“S8\DQ GLPKD ït>qGŽ WRPRUURZ WKLVDW H[LVW\HW1)87 U, ZLOO VWLOO EH KHUH WRPRUURZV

nà‚Øäjí‚äyº „ìàä}䇣yƒØfl VHLQN8æKP~GZH ïtQH>qGŽ FKDOOHQJH10/3/ H[LVWVWD\\HW1)87 U7KHUH DUH VWLOO FKDOOHQJHVV

yàyàiŒiŒ Šäî ‚ä~Łä‡ŁªŁfl WLGLQi8i “…S8\H P…Sq>qE H[DFW 10/DQVZHU 1(*JLYH\HW1(* U7KH\ KDYHQVW JLYHQ DQ H[DFW DQVZHU \HWV

Šom؇mØç ‚înØ䇣ªŁfl “…V8LQ,tQ P…S8\L“,qE UHDG\ 1(*EH\HW1(* U,WVV QRW UHDG\ \HWV

ʔòun ¶IXUWKHU PRUH DJDLQ• 7KH PDUNHU “zXQ LQGLFDWHV WKDW DQ LQWHUUXSWHG VLWXDWLRQ LV UHVXPHG RU WKDW VRPHWKLQJ KDSSHQV LQ DGYDQFH RU DKHDG RI VRPHWKLQJ HOVH LQ WKH IXWXUH ,Q WKH ODWWHU VHQVH “zXQ LQGLFDWHV D VPRRWK DQG VORZ WUDQVLWLRQ IURP RQH VLWXDWLRQ WR WKH QH[W 7KH JORVV XVHG KHUH LV UIXUWKHUV WKRXJK WKLV LV RQO\ D YDJXH DSSUR[LPDWLRQ WR WKH IXQFWLRQV RI WKLV PDUNHU 7KLV PDUNHU RQO\ RF FXUV ZLWK WKH IXWXUH VWDWXV PDUNHU PŽ DQG LQ LPSHUDWLYH H[SUHVVLRQV ZLWKRXW VWDWXV PDUNHU ,W GRHV QRW RFFXU LQ QHJDWHG VWDWHPHQWV EXW LV XVHG LQ SUR KLELWLYH H[SUHVVLRQV ,Q WKLV FDVH LW RFFXUV DW WKH YHU\ HQG RI WKH VHQWHQFH

DIWHU WKH SURKLELWLYH PDUNHU DQG H[SUHVVHV DQ RUGHU QRW WR GR VRPHWKLQJ MXVW \HW

î~}؅ߎŁ‚ƒØfl S\DQOD“zXQPŽ UHWXUQFRPHIXUWKHU)87 U, ZLOO FRPH EDFN DJDLQV

ä„jŒàŁŽŁ‚ƒØfl \H Q8z“zXQPŽ ZDWHU EDWKHIXUWKHU)87 U,VOO WDNH D VKRZHU QRZ 1UVWV

ƒª~ÞŽŁfl \XED“zXQ WDNH,03257IXUWKHU U7DNH VRPH PRUHV

‚‡ºßŁ}åŽŁfl P…,ZjQŽ b“zXQ 1(*JR352+IXUWKHU U’RQVW JR MXVW \HWV

‚àyØoiØä~Ł~ÞŽŁfl PHL“V8Ž“SqED“zXQ IULHQGFRQQHFWJLYH,03257IXUWKHU U,QWURGXFH PH WR KLPV

î‚sØŁïisØç~ÞŽŁfl P\uQtED“zXQ WDVWHORRN,03257IXUWKHU U7U\ WDVWLQJ WKLVV

ä„‚ä…ßmØŁ}åŽŁfl \HP…OjXQQŽ b“zXQ ZDWHU1(*SRXU352+IXUWKHU U’RQVW ZDWHU WKH SODQWV \HWV

Šä…ŁŠ~mØäyº ‚‚}åŽŁfl “…Oq“…SLQGZH P…PiQŽ b“zXQ KHDY\WKLQJV3/ 1(*OLIW352+IXUWKHU U’RQVW FDUU\ KHDY\ VWX3 \HWV

{Þ}å ä‚Ł„ŽŁ‚ƒØfl GDQŽ b Pq\i“zXQPŽ WKLV10/ZLWK DVNJHWIXUWKHU)87 U%\ WKH ZD\ , KDYH WR DVN \RX VRPHWKLQJV

nàyØoàâŁyƒØ…àâ zmØä}ŽŁ‚ƒØfl VHL“V8zGŽ Oy W8LQQH“zXQPŽ KHDUWEDG1)87 5(3 WKLQNVWD\IXUWKHU)87 U+H PLJKW WKLQN WKDW , DP DQJU\V

tɔ́ dɔ́ ¶FKDQJHRIVLWXDWLRQ• 7KH PDUNHU Wæb GæbLV XVHG ZLWK GL3HUHQW W\SHV RI SKUDVHV DQG LQGLFDWHV D FRQ WUDVW RI VRPH NLQG ,Q WKH YHUE SKUDVH LW H[SUHVVHV D FKDQJH RI D VLWXDWLRQ RIWHQ VXGGHQ RU XQH[SHFWHG 7KLV DVSHFWXDO IXQFWLRQ LV FOHDUO\ GHULYHG IURP WKH JHQHUDO QRWLRQ RI FRQWUDVW WKDW LV Wæb GæbH[SUHVVH WKH FRQWUDVW RI WKH VLWXDWLRQ GHVFULEHG E\ WKH SUHGLFDWH WR D SUHYLRXV VLWXDWLRQ ’L3HUHQW UHDG LQJV UHVXOW IURP WKH FRPELQDWLRQ ZLWK GL3HUHQW VWDWXV PDUNHUV :LWK WKH QRQIXWXUH PDUNHU WŽ GŽ Wæb GæbLQGLFDWHV D FKDQJH IURP D SUHYLRXV VLWXDWLRQ RIWHQ ZLWK D QHJDWLYH FRQQRWDWLRQ :LWK WKH IXWXUH PDUNHU PŽ LW LQGLF WHV WKDW D VLWXDWLRQ FKDQJH LV LPPLQHQW DQG LQ QHJDWHG FRQWH[WV LW PDUNV D VLWX DWLRQ ZKLFK FKDQJHG IURP SRVLWLYH WR QHJDWLYH ,Q WKH ODWWHU FDVH WKH FORVHVW (QJOLVK WUDQVODWLRQ HTXLYDOHQW LV UQRW DQ\PRUHV

…ªìnØäƒßiØ~å iŒ}ØäyßçyƒØfl OX KQ…\DX“ SŽ o QDQGæbGŽ SHUVRQ WZR&/) (;&/ UHPDLQ&21751)87 U2QO\ WZR SHRSOH DUH OHIW QRZV

„zߣä„ßiØäyß炃Øfl \…W8j \DX“WæbPŽ WUDLQ DUULYH&2175)87 U7KH WUDLQ LV DERXW WR DUULYHV

iàâƒØçˆßiàâƒØ yØïisØçäyß瀌ßfl NyKDNR S8D“QtGæb E\D ERG\’(3WKLQJERG\ UHDGORRN&2175 )$0 U<RX WU\ WR UHDG IRU \RXUVHOI QRZV

ä}‚î‚mØ„äyß灪Łfl QH P…P\LQ\iGæbE VXQ 1(*VHHJHW&21751(* U:H FDQVW VHH WKH VXQ DQ\PRUHV

€Æ{ƃàâiߣäyº~å àâiØäyß炃Øfl ELGL\RNjGZH EŽ o \DL“WæbPŽ YLGHR1OP3/ (;&/ KLW&2175)87 U,VP JRLQJ WR PDNH YLGHR 1OPV RQO\ IURP QRZ RQV

‚‚ìyØ‚àäyß灪Łfl P…KPD“PtGæbE 1(*QRWHFDWFK&21751(* U, GRQVW UHPHPEHU DQ\PRUHV

7KH 1QDO VORW RI WKH YHUE SKUDVH LV 1OOHG E\ VWDWXV PDUNHUV 7KHVH PDUNHUV DUH WKH RQO\ HOHPHQWV WKDW PXVW QHFHVVDULO\ EH SUHVHQW LQ D IXOO YHUE SKUDVH EHVLGHV WKH PDLQ YHUE $EVHQFH RI D VWDWXV PDUNHU LV QRUPDOO\ XQGHUVWRRG DV LPSHUDWLYH 7KH VWDWXV PDUNHUV H[SUHVV QRWLRQV OLNH QRQIXWXUHUHDOLV IXWXUHLUUHDOLV FKDQJHG VLWXDWLRQ QHJDWLRQ DQG LPSHUDWLYH ,Q GHSHQGHQW FODXVHV WKH VWDWXV PDUNHUV DUH GURSSHG DQG VXERUGLQDWLRQ PDUNHUV DUH SXW LQ WKHLU SODFH ’HWDLOHG DFFRXQWV RI WKH YDULRXV IXQFWLRQV RI WKH VWDWXV PDUN HUV DUH JLYHQ LQ &KDSWHU

WŽ GŽ ¶QRQIXWXUH UHDOLV• 7KH QRQIXWXUH RU UHDOLV PDUNHU WŽ GŽ LV WKH GHIDXOW PDUNHU RQ YHUEV ,W LV XVHG WR LQGLFDWH WKDW D VLWXDWLRQ KDV RFFXUUHG RU LV RFFXUULQJ WKDW WKHUH LV QR GRXEW DERXW DQ HYHQW DQG WKDW WKH HYHQW LV JHQHUDOO\ WUXH 7KLV LV DOVR WKH PDUNHU WKDW LV DGGHG WR WKH YHUE ZKHQ HOLFLWLQJ ZRUGV ,W LV RIWHQ SURQRXQFHG ZHDNO\ DSSURDFKLQJ >U@ EHWZHHQ YRZHOV DQG DVVLPLODWLQJ WR D SUHFHGLQJ

QDVDO YRZHO DV >Q@ ,Q TXHVWLRQV WKH PDUNHU WŽ GŽ RFFX V LQ WKH QRPLQDOL]HG IRUP WD GD LV VKRUWHQHG WR ,… >… U LV GURSSHG DOWRJHWKHU

‡ªyà⠁â„ߣ‡ºßŁªŁyƒØfl ,XGy S8…\j ,Zj S8GŽ $663/ KRO\ JR EHKROG1)87 U7KH\ ZHQW WR YLVLW WKH SDJRGDV

ß…â~Øä}yß…åfl ED ORX“QHGD OŽ o ZKDW GRVWD\1)8710/ &4 U:KDW DUH \RX GRLQJ"V

æiàoàâ~ÞyƒØfl QR]REDGŽ ZHOFRPH,032571)87 U:HOFRPHV

{Æ…àâoàâmØäyº ä}„ßyàâmØŁ‚ìß äyº„yƒØfl GLOR V8DLQGZH QH\DGjLQKPD WZp\iGŽ WKLVDV VKRS3/ SODFHHYHU\DW PHHW_JHW1)87 U7KLV NLQG RI VKRS FDQ EH VHHQ HYHU\ZKHUHV

‚â}ØŁyÆŁ‚iàâ ä„ä…ßmØŁä}ïiyƒØfl PzXQWuKP~JR \HOjXQQH8iGŽ KDWH10/2%- ZDWHUSRXUVWD\3/1)87 U7KH\ DUH HQFRXUDJLQJ KDWUHGV

ä„ôäqŁäyº ßäïißmØç zàâŁiŒ‡…åfl ïZH]qGZH ED8iXQ W8zQi>…OŽ o JROGPDUNHW3/ ZKDWEHFDXVH EHDWIDOO1)87&4 U:K\ GLG WKH JROG SULFH GLYH GRZQ"V

yƒØ…Æä}ßi ŠmØyß}i؁ƒØ…àâîyØ…åfl WŽOLQæoJi “LQWDQŽ“ EŽOR S8\D“ OŽ 7HOHQRU6%- LQWHUQHW KRZ FXW &4 U+RZ GR \RX JHW DFFHVV WR WKH ,QWHUQHW ZLWK 7HOHQRU"V

i{ÞÆ ƒØ…àâä‡oâæŁjå燅å fl N…GDS8L EŽOR ,HV8zXQJŽ b>…OŽ o 4DGGD1 KRZ GLH’,63/1)87&4 U+RZ GLG 4DGGD1 GLH"V

,Q /LWHUDU\ %XUPHVH WKHUH DUH WZR QRQIXWXUH PDUNHUV ,L >LDQG “t 7KHUH LV QR REYLRXV GL3HUHQFH LQ PHDQLQJ EHWZHHQ WKH WZR

‡‚àâmØŁ~sß„ìmØ‚ŒßŁi äßØî~zߣ‡sØfl ,…PjLQS\LQÑDïLQP\jJi S8æS\iW8j>L KLVWRULDQ3/6%- GHVFULEHNHHS1)87 U+LVWRULDQV GHVFULEHG LWV

7LPEHUZROYHV‚ì iâ}؇ºƒØîjmØŁiàâ î~ä…‡ fl WLQEDZXKPi NRXQ,ZŽ8uQJR S\~OH“t 7LPEHUZROYHV6%- WUDGH2%- GR(83+1)87 U7LPEHUZROYHV WUDGHG ZLWK XVV

mɛ ¶IXWXUH LUUHDOLV• 7KH IXWXUH RU LUUHDOLV PDUNHU PŽ LV XVHG WR H[SUHVV D VLWXDWLRQ WKDW KDV QRW FRPH DERXW \HW RU DERXW ZKLFK WKH VSHDNHU KDV GRXEWV 7KH H[WHQGHG IRUP OpLQPŽLV RIWHQ XVHG ZLWK WKH VDPH PHDQLQJ DV SODLQ PŽ WKRXJK WKHUH DUH GL3HUHQFHV LQ WKH GLVWULEXWLRQ RI WKH WZR PDUNHUV ,Q TXHVWLRQV PŽ RFFXUV LQ WKH QRPLQDOL]HG IRUP KPD RU LV VKRUWHQHG WR P…

{Æä} oàâmØä…Ł}ß„Æ‚ì~àyØ‚ƒØfl GL Qp V8DLQ OqQD\LKPi SHL“PŽ WKLV GD\ VKRS IRXUKRXU5(675 FORVH)87 U7KH VKRS ZLOO FORVH DW SP RQO\ WRGD\V

‚}iØî}Ø ƒØ‡ºßŁ‚…åfl P…QŽ“S8\DQ EŽ ,ZjP…OŽ o WRPRUURZ ,17(5 JR)87&4 U:KHUH DUH \RX JRLQJ WRPRUURZ"V

k„àä„Ł „~Øoå…Ø‚ìß äoºŁäºŁ‚ƒØfl J…Ut EDQGD\q E…UD“V8Ž oKPD V8ZqQZqPŽ *UHHN EXGJHWD3DLU %UXVVHOVDW GLVFXVV)87 U7KH *UHHN EXGJHW ZLOO EH GLVFXVVHG LQ %UXVVHOVV

äiŒßmØŁoiØyiØ„mØŁ â~Ø„ìmØàâiØ‚ƒØfl QjXQ V8Ž“ WŽ“\uQ \RX“ïLQ \DL“PŽ VFKRRO FRQQHFW JRXSZKLOH PRYLH KLW)87 U, ZLOO PDNH PRYLHV ZKLOH FRQWLQXLQJ P\ HGXFDWLRQV

䇺Łä~ÞmØjŒà}Ø‚ƒØfl ,ZqEDXQ Q8HLQPŽ EORRGSUHVVXUH PHDVXUH)87 U:HVOO PHDVXUH \RXU EORRG SUHVVXUHV

ƒâæäŠßmØ ƒØ…àâäî~ß„‚…åfl \RXQ“DXQ EŽOR S\æ\iP…OŽ o EHOLHYHVRWKDW KRZ VSHDNJHW)87&4 U+RZ VKDOO , VD\ LW WR FRQYLQFH \RX"V

Š|ài ßäoºŁäºŁïi‚…åfl “…GtNi ED V8ZqQZq8iP…OŽ o SULQFLSDO ZKDW GLVFXVV3/)87&4 U:KDW ZLOO EH WKH PDLQ SRLQW RI GLVFXVVLRQ"V

kŒÆ{Æ~ÆyàâŁyiØ‚ià⠁ƒØ…àâzà}ØŁ‚…åfl 8LGLSL WzWŽ“KP~JR EŽOR W8qLQP…OŽ o *’3 LQFUHDVHJRXS10/2%- KRZ FRQWURO)87&4 U+RZ VKDOO ZH PDLQWDLQ WKH LQFUHDVH RI WKH *’3"V

,Q /LWHUDU\ %XUPHVH WKH IXWXUH PDUNHU LV P\L

ƒä} ŒoàâmØ ä…Ł}ß„Æ‚ì ~àyØ‚sØfl \…Qp “L V8DLQ OqQD\LKPi SHL“P\L WRGD\ WKLV VKRS IRXUKRXU5(675 FORVH)87 U7RGD\ WKLV VKRS ZLOO FORVH DW SP RQO\V

nßä‚Ł~ºå yìnØ ƒ æià‚Ø iŒmØŁ~‡ºßŁ‚sØfl VDPqEZŽ o W…KQL“ KQ…QHLQ QuQSi>ZjP\L H[DP RQH\HDU WZRWLPH KROGJR)87 U:H ZLOO KROG WKH H[DP WZLFH D \HDUV

Šä‚„ài}Øä{í…ß ‡}ØŁ ¤‹⁄ à⣠„mØŁìÆŁî‚~Øìæ‚sØfl “…PHUtNDQ GæOD

$PHULFDQ GROODU

PLOOLRQ IRXUKXQGUHG’(3 HLJKWWHQYDOXH

LQYHVW)87

U:H ZLOO LQYHVW PLOOLRQ $PHULFDQ GROODUVV

6RODU ,PSXOVH‚ ˛ä…Ł‡àâ oàâiØä„ßiØäyßç‚sØfl V8ROD“LQSi OV PjQG…Oq>y V8DL\DX“WæbP\L 6RODU,PSXOVH 0DQGDOD\WR DUULYH&2175)87 U7KH 6RODU ,PSXOVH ZLOO VRRQ DUULYH LQ 0DQGDOD\V

pi bi ¶QHZVLWXDWLRQ• 7KLV PDUNHU LV XVHG WR LQGLFDWH WKDW D QHZ VLWXDWLRQ KDV FRPH DERXW KHQFH WKH JORVV UQHZ VLWXDWLRQV 16,7 ,Q FDVXDO VSHHFK SL ELL RIWHQ ZHDNHQHG WR >L@ RU DVVLPLODWHG WR D SUHFHGLQJ QDVDO YRZHO WR >PL@

~àâiØoæ iâ}؇ºßŁð~Æfl SDL“V8DQ NRXQ>ZjEL PRQH\ DOOJR16,7 U7KH PRQH\ LV XVHG XSV

€àâiØoßä}ð~Æfl EDL“ V8DQHEL VWRPDFK KXQJU\VWD\16,7 U,VP KXQJU\ QRZV

Š…â~Ø „ð~Æ…ßŁfl “…ORX“ \iEL Oj ZRUN JHW16,7 34 U+DYH \RX JRW D MRE QRZ"V

…Æiº‚؃â iºƒØ…º}Øð~Æfl OLNXDQ\~ NZŽOXQEL /HH.XDQ<HZ SDVVDZD\16,7 U/L .XDQ <HZ KDV SDVVHG DZD\V

äoŁâæi omØŁjºmØçî~…àâiØð~Æfl V8q\RXQJi V8uQJZtQ S\~ODL“SL KRVSLWDOIURP JRGRZQSHUPLVVLRQ GRIROORZ16,7 U+H KDV EHHQ GLVFKDUJHG IURP WKH KRVSLWDOV

‚àâàâmØŁ…iØiàâmØâ}ØŁ‚ìß €‚ß…àâ yØàâmØð~Æfl PREjLQOŽ“NDLQS8zXQKPD E…PDOR S8D“QDLQEL PRELOHKDQGKROGSKRQHDW %XUPHVHDV UHDGFDSDEOH16,7 U<RX FDQ QRZ UHDG LQ %XUPHVH RQ PRELOH SKRQHVV

äqŁä…łßç…àâiØð~Æfl ]q ïæbODL“SL PDUNHW UHGXFHIROORZ16,7 U7KH SULFH KDV EHHQ UHGXFHGV

ðmà‚ØŁjŒ‚ØŁä„Łä„ßmØîjsØ ‡}ØŁ…ßð~Æ…ßŁfl ÑqLQ8jQ\q \DXQ8L ,jQODEL Oj SHDFH UD\ VSUHDGFRPH16,7 34 U$UH WKHUH DQ\ VLJQV RI SHDFH QRZ"V

Šom؇mØçînØð~Æ…ßŁfl “…V8LQ>tQ S8\L“SL Oj UHDG\ EH16,7 34 U$UH \RX UHDG\"V

î~£}ßäyº ä~íä}ð~Æ…ßŁfl S\D“,…QDGZH SæQHEL Oj SUREOHP3/ DSSHDUVWD\16,7 34 U7KHUH DUH DOUHDG\ SUREOHPV"V

pʰù bù ¶QHJDWLRQ• :LWK QHJDWHG SUHGLFDWHV RQO\ WKH QHJDWLYH VWDWXV PDUNHU S8 E FDQ EH XVHG 7KH GLVWLQFWLRQ EHWZHHQ QRQIXWXUHUHDOLV DQG IXWXUHLUUHDOLV LV QHXWUDOL]HG LQ QHJDWLYH FRQWH[WV ,Q FDVXDO VSHHFK WKH QHJDWLRQ PDUNHU S8 E LV RI WHQ ZHDNHQHG WR >@ RU DVVLPLODWHG WR D SUHFHGLQJ QDVDO YRZHO WR >P@ ,Q VRPH FROORTXLDO YDULHWLHV WKH QHJDWLRQ PDUNHU S8 E LV GURSSHG LQ VRPH FRQWH[WV )RU VRPH VSHDNHUV LW LV UDWKHU WKH SUHYHUEDO QHJDWRUP… WKDW LV RPLWWHG OHDYLQJ RQO\ WKH SRVWYHUEDO 8 E DV WKH H[SUHVVLRQ RI WKH QHJD WLRQ LQ FDVXDO LQIRUPDO VSHHFK ,Q FRQWHQW TXHVWLRQV WKH PDUNHUS8 E LV UHJXODUO\ GURSSHG EXW LW LV UHWDLQHG LQ SRODU TXHVWLRQV

ˆàâoàâmØ‚ìß ‡ºßŁnߣ„mØ ~àâ‚äißmØŁªŁ…ߣfl KR V8DLQKPD ,Zj Vj\LQ SR P…NjXQE Oj WKDW VKRSDW JR HDWLI LQH[FHVV 1(*JRRG1(* 34 U:RXOGQVW LW EH EHWWHU WR JR DQG HDW LQ WKH UHVWDXUDQW RYHU WKHUH"V

Šå{Þ …âæŁ†‚înØàâm؁ªŁfl “Ž oGD OzXQZi P…S8\L“QDLE WKDW10/ DEVROXWHO\ 1(*EHFDSDEOH1(* U7KDW LV WRWDOO\ LPSRVVLEOHV

oàâ}Æi ,QWHUYLHZiߣiàâ âæ‚ymØäyß灪Łfl V8RQLJi “LQWDE\NjJR \RXQ P…WLQGæbE 6RQ\6%- ,QWHUYLHZ1OP2%- KDOO 1(*SXWRQ&21751(* U6RQ\ ZLOO QRW VKRZ,QWHUYLHZLQ WKH FLQHPDV DQ\ PRUHV

Š|à~ÓßƒØ ‚„ìàªŁfl “…GHL“SŽ P…ïtE PHDQLQJ 1(*H[LVW1(* U7KDW GRHVQVW PDNH VHQVHV

Šnß‚äïiªŁ…ߣfl “…VD P…QHE Oj IRRG 1(*FUXPEOHG1(* 34 U$UH \RX KDYLQJ LQGLJHVWLRQ"V

{ƇmØy}ØŁäyº y„ߣ‚†m؁ªŁ…ߣfl GL ,LQGjQGZH W…\j P…ZLQE Oj WKLV FRXUVH3/ ODZ 1(*HQWHU1(* 34 U$UH WKHVH FRXUVHV QRW OHJDO"V

‡ªyàâiàâ ‚yߣäyß灪Ł…ߣfl ,XGyJR P…WjGæbE Oj $663/2%- 1(*LQKLELW&21751(* 34 U<RX DUH QRW JRLQJ WR VWRS WKHP"V

,Q /LWHUDU\ %XUPHVH WKHUH LV QR VWDWXV PDUNHU LQ QHJDWHG H[SUHVVLRQV

Š~nØŠjyØ ‚„~Ønå䇣~Þfl “…S\L““…N8D“ P…\D“VŽ o>qED VKRRWLQJ 1(*VWRSFHDVH\HW,03257 U7KHUH LV QR FHDVH1UH \HWV

iŒ‚yàâìnØäƒßiØ ‚î~yØnå䇣~Þfl Q…PiGy KQ…\DX“ P…S\D“VŽ o>qED )$663/ WZR&/) 1(*GLYRUFH\HW,03257 U:H KDYH QRW EHHQ R4FLDOO\ GLYRUFHG \HWV

nɛ́ ¶SURKLELWLYH• :KLOH WKH DEVHQFH RI D VWDWXV PDUNHU LV LQWHUSUHWHG DV D4UPDWLYH LPSHUDWLYH WKH QHJDWHG LPSHUDWLYH LV H[SUHVVHG E\ DGGLQJ WKH PDUNHU QŽ bWR D Q JDWHG YHUE 7KLV PDUNHU LV GL3HUHQW IURP WKH RWKHUV LQ WKDW WKH DVSHFWXDO PDUNHUV Wæb GæbUFRQWUDVWLYH FKDQJH RI VLWXDWLRQV DQG “zXQ UIXUWKHU PRUHV DUH SODFHG DIWHU LW

‡ª‚ŒßŁiàâ ‚äî~ß~Þ}åfl ,XP\jJR P…S\æoEDQŽ b RWKHUSHRSOH2%- 1(*VSHDN,03257352+ U’RQVW WHOO LW WR RWKHUVV

‚oªsæ}åfl P…V8XÑDQQŽ b 1(*QRLV\352+ U’RQVW EH QRLV\V

oiØäïiŁ ‚äyßmØŁ}åfl V8Ž“Qq P…WjXQQŽ b SURWHFWLRQPRQH\ 1(*DVNIRU352+ U’RQVW DVN IRU SURWHFWLRQ PRQH\V

ßoâ‚ì ‚äyßmØŁ}åfl EDV8~KPi P…WjXQQŽ b ZKDWUHZDUG5(675 1(*DVNIRU352+ U’RQVW SUD\ IRU DQ\WKLQJV

,Q /LWHUDU\ %XUPHVH WKH LPSHUDWLYH LV XQPDUNHG ZKLOH WKH SURKLELWLYH WDNHV WKH SUHYHUEDO QHJDWRUP… DQG KH SRVWYHUEDO VWDWXV PDUNHU KQtQ

ŠmØyß}iØ‚ìß }ß‚sØ‚ì}Øià⠁ƒØäyßç‚삇âæŁìmØçfl “LQWDQŽ“KPD QDP\LKPDQJR EŽGæbKPi P…,zXQKQtQ ,QWHUQHWDW QDPHFRUUHFW

2%- ZKHQ)87 5(675

1(*XVH 352+

U1HYHU XVH WKH UHDO QDPH RQ WKH ,QWHUQHWV

„}؇ªiàâäyº…łmØ mÞ‚…ß‚Æ ‚yàâiØìmØçfl \DQ>XJR WZpKO\LQ ÔD P…ODPL P…WDL“KQtQ HQHP\2%- PHHWLI )$0 1(*FRPH

EHIRUH 1(*FROOLGH 352+

U,I \RX VHH WKH HQHP\ GRQVW VWDUW WKH DWWDFN EHIRUH , DUULYHV

$GYHUELDO SKUDVHV DUH SKUDVHV WKDW PRGLI\ DQ HYHQW UDWKHU WKDQ LWV SDUWLF LSDQWV 7KH PRGL1FDWLRQ FDQ KDYH VFRSH RYHU WKH SUHGLFDWH GHVFULELQJ WKH HYHQW RU RYHU WKH ZKROH FODXVH 7KH ODWWHU LV WKH FDVH ZLWK DGYHUELDOV OLNH WHPSRUDO DQG ORFDWLYH H[SUHVVLRQV DPRQJ RWKHUV 8QOLNH QRXQ SKUDVHV DQG YHUE SKUDVHV WKH FDWHJRUL]DWLRQ RI DGYHUELDO SKUDVHV LV PXFK OHVV XQL1HG

DQG VWUDLJKWIRUZDUG DQG WKLV FODVV VKRZV PXFK PRUH GLYHUVLW\ 7KHUHIRUH QR JHQHUDO SDWWHUQ RI DGYHUELDO SKUDVHV FDQ EH JLYHQ DQG WKH H[DPSOHV OLVWHG LQ WKH IROORZLQJ VHFWLRQV DUH RQO\ PHDQW WR LOOXVWUDWH DW OHDVW SDUWLDOO\ WKH YDULHW\ RI IRUPV IRXQG LQ %XUPHVH

$GYHUELDO IXQFWLRQV FDQ EH H[SUHVVHG E\ EDUH QRXQV HVSHFLDOO\ QRXQV GH ULYHG IURP YHUEV QRXQV PDUNHG ZLWK UHODWLRQDO PDUNHUV SRVWSRVLWLRQV GHSHQGHQW FODXVHV ERWK IXOO DQG UHGXFHG DQG SODLQ DGYHUEV 7KH GHPRQ VWUDWLYHVGLUWKLVVKRUWKDW IDU DZD\V DQG“Ž oGLUWKDW NQRZQV DQG WKH LQWHU URJDWLYHEŽ UZKLFKV FDQ EH FRPELQHG ZLWK WKH ORFDWLYH FDVH PDUNHUV Ni Ji UIURPV NR JR UWRV DQG KPD UDWV WR IRUP ORFDWLYH DGYHUELDO H[SUHVVLRQV DQG ZLWK WHPSRUDO QRXQV VXFK DVQpUGD\V WR IRUP WHPSRUDO DGYHUELDOV

{Æi GLJi UIURP KHUHV ˆàâ‚ìß KRKPD UWKHUHV VWDWLRQDU\ DW GLVWDQW XQVSHFL1HG SODFH Šå{Æiàâ “Ž oGLJR UWKHUHV PRYHPHQW WRZDUGV VSHFL1HG PHQWLRQHG SODFH {Æä} GL Qp UWRGD\V

$SDUW IURP WKHVH %XUPHVH KDV D QXPEHU RI PRUH RU OHVV SURGXFWLYH SDW WHUQV WR IRUP DGYHUELDO H[SUHVVLRQV 7KH IROORZLQJ OLVW LV QRW PHDQW WR EH H[KDXVWLYH EXW UDWKHU WR SUHVHQW WKH PDLQ SURFHVVHV DYDLODEOH LQ WKH ODQ JXDJH

9HUEV GHVFULELQJ SURSHUWLHV FDQ EH UHGXSOLFDWHG DQG SODFHG EHIRUH WKH PDLQ YHUE WR H[SUHVV DGYHUELDO IXQFWLRQV

oiØoiØ…ßä}ßØfl V8Ž“V8Ž“ OD Qæ ZLWKRXWIDLO FRPH &63 U&RPH ZLWKRXW IDLOV

ä‡ä‡jŒßjŒß iàâmØfl ,H>HQ8D8D NDLQ FHUWDLQO\ KROG U+ROG LW ZHOOFDUHIXOO\V

ä}yàâmØŁ ‚ì}Ø‚ì}Ø ‡ºßŁyàâiØyƒØfl QpGjLQ KPDQKPDQ ,Zj WDL“WŽ GD\HYHU\ FRUUHFWFRUUHFW WRRWK FROOLGH1)87 U, EUXVK P\ WHHWK UHJXODUO\ HYHU\GD\V

{Æ…àâ …ºƒØ…ºƒØ‚äî~߇mØ灪Łfl GLOR OZŽOZŽ P…S\æo>tQE WKLVDV HDV\HDV\ 1(*VSHDNSURSHU1(* U<RX VKRXOGQVW VD\ WKLV HDVLO\V

î‚}Ø‚ß„å…àâ~å …ºƒØ…ºƒØäjíïiyƒØfl P\DQPDS8…\Ž o Oy EŽ o OZŽOZŽ N8æ8iGŽ 0\DQPDUZDWHUPHORQ 5(3 (;&/ HDV\HDV\ FDOO3/1)87 U3HRSOH FDOO LW W0\DQPDU ZDWHUPHORQX DV DQ HDV\ WHUPV

,Q /LWHUDU\ %XUPHVH DGYHUELDO SKUDVHV DUH IRUPHG E\ DGGLQJ WKH DGYHUELDO VX4[ VZD]ZD WR YHUEDO RU DGYHUELDO H[SUHVVLRQV

Œ}ƒØäî‚yºmØ …ºyØ…~Ønºß ‡ºßŁ…ßàâm؇sØfl “L QŽP\HGZLQ OX“OD“VZD ,ZjODQDLQ>L WKLV DUHDLQ IUHH$’9 JRFRPHFDSDEOH1)87 U,Q WKLV DUHD \RX FDQ JR IUHHO\ IURP SODFH WR SODFHV

„mØŁìÆŁ~ºmØç…mØŁnºß äoºŁäºŁïi‡sØfl \uQKQu SZtQOuQ]ZD V8ZqQZq8i>L LQWLPDWH RSHQ$’9 GLVFXVV3/1)87 U7KH\ GLVFXVV RSHQO\ DQG IULHQGO\V

äßØ䄺nºß yØoiØïi‡sØfl S8æ\ZH]ZD KQRX“V8Ž“Qi>L IULHQGO\$’9 JUHHW3/1)87 U7KH\ JUHHW HDFK RWKHU ZDUPO\LQ D IULHQGO\ PDQQHUV

7KH VX4[ ORLV DGGHG WR QRXQV RU QRXQ SKUDVHV WR IRUP VLPLODWLYH PRGL1HUV PHDQLQJ UOLNH 1V RU ULQ WKH ZD\ RI 1V ,W LV FRPPRQO\ IRXQG ZLWK ODQJXDJH QDPHV WR LQGLFDWH WKH ODQJXDJH RQH VSHDNV 7KH VLPLODWLYH H[SUHVVLRQV FDQ DOVR EH XVHG WR PRGLI\ QRXQV RU RWKHU QRPLQDO H[SUHVVLRQV

€‚ß…àâ ‚äî~ßyy؁ªŁ…ߣfl E…PDOR P…S\æoGD“S8 Oj %XUPHVHDV 1(*VSHDNDEOH1(* 34 U’RQVW \RX VSHDN %XUPHVH"V

â}ØŁæiÆŁ…àâ ä}ïiyƒØfl S8zXQ8uOR QH8iGŽ PRQNDV VWD\3/1)87 U7KH\ OLYH OLNH PRQNVV

‡ª…àâ ynØäƒßiØ „ìßä}yƒØfl ,~OR W…\DX“ ïDQHGŽ DV RQH&/) VHHNVWD\1)87 U,VP ORRNLQJ IRU RQH OLNH KHUV

$IWHU YHUEDO H[SUHVVLRQV WKH DGYHUELDO VX4[ LV ,…OR >… R ZLWK WKH VKRUW IRUP RI WKH DWWULEXWLYH QRQIXWXUH PDUNHU ,… >… IURP WŽ b GŽ b

ä~Œß؇…àâ ä}~Þ‚ƒØfl S\æ>HOR QHEDPŽ KDSS\DV VWD\,03257)87 U:H ZLOO OLYH DV ZH ZLOO IHHO KDSS\ DERXWV

zm؇…àâ ‚în؅߁ªŁfl W8LQ>…OR P…S8\L“ODE WKLQNDV 1(*EHFRPH1(* U,W GLGQVW WXUQ RXW DV H[SHFWHGV

,Q /LWHUDU\ %XUPHVH WKH VLPLODWLYH PRGL1HUV DUH IRUPHG ZLWK WKH VX4[ ,y >y RU NŽ b>y JŽ b>y

9LEHUiåç‡àâ Š‡âæŁî~àâmØä‡ß…àâmØŁiàâ „ìß~Þfl EDLQEDJŽ b>y “…,zXQ S\~QDLQ>æo OjLQJR ïDED 9LEHUDV 10/XVH GRFDSDEOH5(/ OLQH2%- VHHN,03257 U6HDUFK IRU OLQHV WKDW FDQ EH XVHG OLNH 9LEHUV

.RUHDZRPDQ 3/DV

FRPSOH[LRQ SUHWW\ OHW VRWKDW

WKLV FUHDP DSSO\ ,03257

U3XW RQ WKLV FUHDP LQ RUGHU WR JHW D JRRG FRPSOH[LRQ OLNH .RUHDQ ZRPHQV

‚àâŁni؆àâmØi }y؇‚ÆŁiåç‡àâ …ì~‡sØç†yØnâæîmØç †mØä„ßi؃ìØð~àm؇sØfl PzVŽ“ZjLQ QD“,…Pu

>L 0RH6HW:DLQ DQJHO

DV SUHWW\ 1)87’(3

GUHVV ,1675

HQWHUDUULYH FRPSHWH 1)87

U0R 6HW :DLQ HQWHUHG WKH FRQWHVW ZLWK D EHDXWLIXO DQJHOOLNH RXW1WV

7KH QRWLRQ UZLWKV LQFOXGLQJ LQVWUXPHQWDO DQG FRPLWDWLYH PHDQLQJ LV H[ SUHVVHG E\ WKH PDUNHU QŽ b ZKLFK LV DWWDFKHG WR D QRXQ SKUDVH RU D QRPL QDOL]HG YHUE SKUDVH RU FODXVH ,Q WKH ODWWHU FDVH RQO\ WKH QRQIXWXUH LV XVHG 9 WD GDQŽ b U:LWKV ZLWK YHUEV RU FODXVHV LV XVXDOO\ WUDQVODWHG DV UZKLOHV RU UEH FDXVHV 7KH PDUNHU QŽ b ZLWKV LV IUHTXHQWO\ DGGHG WR DGYHUELDO H[SUHVVLRQV SOHRQDVWLFDOO\

‡ªŠî‚}ØæiÆŁ}å ä‚ßmØŁyƒØfl ,X “…P\DQ8uQŽ b PjXQGŽ VSHHGELJZLWK GULYH U+H GULYHV YHU\ IDVWV

DVPXFKDV DZDUHQHVV ODSVHJR

1)8710/ ZLWK

DOO DOO 1)8710/

(;&/

U$V WKH DWWHQWLRQ VOLSSHG DZD\ IRU D PLQXWH HYHU\WKLQJ ZDV JRQHV

†ÞiıyØyß}å ‚kü…ßäoßmØïi‚ƒØfl ZD QX“WDQŽ b PLQJ…ODV8DXQ8iPŽ /HQW GURSR31)8710/ZLWK PDUU\3/)87 U$V VRRQ DV /HQW LV RYHU ZHVOO JHW PDUULHGV

‡ª|ßyØ~âæî‚mØ…àâiØyß}å ä~Œß؇ºßŁyƒØfl ,~ GD“SRXQ P\LQODL“WDQŽ b S\æ>ZjGŽ ’(3 SKRWRJUDSK VHHIROORZ1)8710/ZLWK KDSS\JR1)87 U, JRW KDSS\ DV VRRQ DV , VDZ KLV SKRWRV

…iØiàâmØâ}ØŁŠ‡âæŁ‚ŒßŁ…ßyß}å oàâ„ìƒØ‚Æ{ƃ߅sØŁ Š‡âæŁ‚ŒßŁ…ßïiyƒØfl OŽ“NDLQ S8zXQ

KDQGKROG SKRQH

10/XVH PXFKFRPH 1)8710/ZLWK

VRFLDOPHGLD DOVR

U$V WKHUH LV DQ LQFUHDVLQJ XVH RI FHOOSKRQHV WKH XVH RI VRFLDO PHGLD LV DOVR LQFUHDVLQJV

)RU UZLWKRXWV WKH SDWWHUQV 13PŽ b DQGP… 9 S8Ž o EŽ o DUH XVHG 2I WKHVH WKH ODWWHU LV PRUH IUHTXHQW LQ &ROORTXLDO %XUPHVH WKH IRUPHU RFFXUV PDLQO\ LQ 1[HG H[SUHVVLRQV

Š…â~Ø ‚…â~؁å ~àâiØoæ ƒØi„‚…åfl “…ORX“ P…ORX“S8Ž o SDL“V8DQ EŽJi \iP…OŽ o ZRUN 1(*GRZLWKRXW PRQH\ ,17(5IURP JHW)87&4 U:LWKRXW ZRUNLQJ ZKHUH ZRXOG \RX JHW PRQH\ IURP"V

‚à‚åçiä…Łäyºiàâ nߊâ~؇ºßŁ…삃Øfl PtEiPŽ b N8…OqGZHLJR VD“RX“ ,Zj KOXPŽ PRWKHUIDWKHUZLWKRXW FKLOG3/2%- ERRN JR GRQDWH)87 U:HVOO JR DQG GRQDWH ERRNV WR RUSKDQVV

7KH IROORZLQJ WZR H[DPSOHV DUH IURP /LWHUDU\ %XUPHVH

,’ ‚åçiߣŠ~àâ~n ˆsØŁ‚ŒßŁ ‡à‚ØŁosØŁ‚à‡sØfl “DLQGLPŽ b Nj “…SRS\L“VuP\j ,qLQV8Ž oPt>L ,’ZLWKRXW FDU H[WUDWKLQJ3/ FRQ1VFDWHFDWFK1)87 U6SDUH FDU SDUWV ZLWKRXW DQ LGHQWL1FDWLRQ QXPEHU DUH FRQ1VFDWHGV

Šj‚åçäŒßØäî~ºå‚ŒßŁ iŒmØŁ~‚sØfl “…N8iPŽ b S8\æE\HEZŽ oP\j QuQSiP\L IHHZLWKRXW HQWHUWDLQHYHQW3/ KROG)87 U7KHUH ZLOO EH IUHH SHUIRUPDQFHVV

7KH SDWWHUQ“… 9 Qu 8u LV XVHG ZLWK SURSHUW\ YHUEV WR H[SUHVV WKH PHDQLQJ UYHU\ 9V ,W FRQVLVWV RI WKH QRPLQDOL]HG IRUP RI WKH YHUE DQG WKH SURSHUW\ YHUEQuUEH ELJV

Šä†ŁæiÆŁ ‚‡ºßŁ}åä}ßØfl “…Zq8u P…,ZjQŽ b Qæ 10/IDUELJ 1(*JR352+ &63 U’RQVW JR WRR IDU DZD\ ZLOO \RXV

Š‚ŒßŁæiÆŁ nߣàâmØyƒØfl “…P\j8u VjQDLQGŽ 10/PDQ\ELJ HDWFDSDEOH1)87 U+H FDQ HDW D ORWV

ŠïißæiÆŁ ä}‚…ߣfl “…QD8u QHP…Oj 10/ORQJELJ VWD\)8734 U$UH \RX VWD\LQJ IRU D ORQJ WLPH"V

7KH VX4[ N8…QŽ o J…QŽ o LV W\SLFDOO\ DWWDFKHG WR YHUEV DQG RQRPDWRSRHWLF ZRUGV WR H[SUHVV D VXGGHQ DQG DEUXSW DFWLRQ QRLVH RU VHQVDWLRQ XVXDOO\ ZLWK VKRUW GXUDWLRQ 7KH FRPSRVLWLRQV DUH QRW DOZD\V WUDQVSDUHQW DQG WKH ZRUG WR ZKLFK WKH VX4[ LV DWWDFKHG PD\ QRW KDYH D OH[LFDO PHDQLQJ RI LWV RZQ

î€}ØŁj}åoªoªsæs抇æäyºäïißmØç …}Øà⣇ºßŁyƒØfl E\zXQJ…QŽ o ]XV8XÑDQÑDQ “…,DQGZH8iXQ OiQQz>ZjGŽ VXGGHQO\ QRLV\ VRXQG3/EHFDXVH VWDUWOHZDNHXSJR

1)87 U, ZDV ZRNHQ XS E\ VXGGHQ ORXG QRLVHVV

7KH VX4[ FDQ EH DWWDFKHG WR D YHUE LQGLFDWLQJ WKDW WKH HYHQW KDSSHQV DEUXSWO\ DQG TXLFNO\ XQH[SHFWHGO\

î~ymØŁä~ÞiØ}ߣ‚ìß îyØj}å äyº…àâiØyƒØfl E…GuQEDX“QjKPD S8\D“N8…QŽ o WZpODL“WŽ ZLQGRZQHDUDW FXWDEUXEWO\ PHHWIROORZ1)87 U, FDXJKW D JOLPSVH RI VRPHWKLQJ WKDW SDVVHG E\ QHDU WKH ZLQGRZV

7KH VX4[ IUHTXHQWO\ RFFXUV ZLWK RQRPDWRSRHWLF ZRUGV UHSUHVHQWLQJ DEUXSW XQH[SHFWHG VRXQGV RU VHQVDWLRQV 7KHVH DUH XVXDOO\ QRW WUDQVODWDEOH LQWR (QJOLVK

{âyØj}å ïiߣ…àâiØyƒØfl GRX“N8…QŽ b QjODL“WŽ GRX“DEUXSWO\ KHDUIROORZ1)87 U, KHDUG D GXOO VRXQG DV LI VRPHWKLQJ GURSSHGV

jº‚ØŁj}å iŒiºå‡ºßŁyƒØfl N8ZjQJ…QŽ b QiNZŽ o>ZjGŽ N8ZjQDEUXSWO\ IDOOEURNHQJR1)87 U7KH SODWH GURSSHG DQG EURNH LQWR SLHFHV ZLWK D ORXG VRXQGV

~„à‡yØä„ìiàâ zºiØ…ßäyßç †ÞŁj}å †àâmØŁ„ƒØïiyƒØfl S…UHL“,D“ïpJR W8ZŽ“ODGæb ZjJ…QŽ o ZjLQ DXGLHQFHLQIURQWWR H[LWFRPH&2175Zj DEUXSWO\ VXUURXQG

U:KHQ , FDPH RXW WKH DXGLHQFH ODXJKHG ZLWK D ELJ URDUV