Expression of tense, aspect, and modality

VFLHQFHVXEMHFW2%- OHDUQWDNH’,63/ 1)87

U, VWXGLHG VFLHQFHV DW -XGVRQ &ROOHJH LQ <DQJRQV

$UVHQDO6%- 0RQWSHOOLHU WHDP2%-

YLFWRU\ JHW’,63/ 1)87

U/DVW 6DWXUGD\ $UVHQDO GHIHDWHG WKH 0RQWSHOOLHU WHDPV

¥›‹‹ i ¥››' jâìnØŠzà Šïiæä~ŁŠ„ß„ìà…â~ØjåçyƒØfl W8iXQNz\iïL“V8Ž bïL“Ni W8iXQNz\iNy]Ž bÔjJ~ KQL“ “…W8t IURP &/) \HDU XQWLO

U, ZRUNHG DV DQ DGYLVHU IURP WR V

)XWXUH UHIHUHQFH LV JHQHUDOO\ H[SUHVVHG E\ WKH IXWXUH VWDWXV PDUNHU PŽ ZKLFK LV DOVR XVHG WR H[SUHVV XQFHUWDLQW\ DQG VSHFXODWLRQ ,W LV ODEHOHG ULUUH DOLVV UDWKHU WKDQ UIXWXUHV E\ PDQ\ DXWKRUV VWUHVVLQJ LWV IXQFWLRQ WR GHQRWH XQUHDOL]HG HYHQWV 7KH EDVLF VHPDQWLFV RI WKLV PDUNHU LV UVSHFXODWLYH XQ FHUWDLQ VWDWXVV ZKLFK LV DGHTXDWH WR H[SUHVV IXWXUH HYHQWV DV ZHOO DV HYHQWV DERXW ZKLFK WKH VSHDNHU LV QRW VXUH

‚}iØî}Øiı}ØäyßØî~}Ø…ß‚ƒØfl P…QŽ“S8\DQ Q…Qæ S\DQODPŽ WRPRUURZ 0 UHWXUQFRPH)87 U,VOO FRPH EDFN WRPRUURZV

î‚}Ø‚ßo}Øo}ØŠ…ì}å äjyØä~튅ìiàâ ä„߇‚ä‚ô‚ƒØfl P\DQPD V8DQ]DQ

0\DQPDU OLNH

EHDXW\ZLWK HUD DSSHDU

EHDXW\2%- PL[JURRPOLIW VWLU)87

U:H ZLOO PL[ WKH WUDGLWLRQDO %XUPHVH EHDXW\ DQG WKH PRGHUQ EHDXW\V

ð~ÆŁ„mØ ä‡ºŁä~ÞmØjŒà}Ø‚ƒØfl Su\LQ ,ZqEDXQ Q8HLQPŽ 1QLVKHGLI EORRGSUHVVXUH PHDVXUH)87 U$IWHU WKDW ZHVOO PHDVXUH WKH EORRG SUHVVXUHV

,Q /LWHUDU\ %XUPHVH WKH IXWXUH PDUNHU KDV WKH IRUPP\L RU O VV FRP PRQO\ “iQ

ŒîjæìmØçyàâiØiàâ ~àâmØ„ìmØiàâƒØyàâmØä„ßmØŁ‚sØfl “L Q8DQKQtQ WDL“NR SDLQïLQ NRGDLQ \jXQP\L WKLV JDUGHQZLWK EXLOGLQJ2%- RZQHU VHOI VHOO)87 U7KLV EXLOGLQJ ZLWK JDUGHQ FRPSRXQG ZLOO EH VROG GLUHFWO\ E\ WKH RZQHUV

+LODU\ &OLQWRQ6%- SUHVLGHQWFKRRVHSLFN HYHQWLQ

HQWHUDUULYH FRPSHWH)87

U+LODU\ &OLQWRQ LV JRLQJ WR FRPSHWH LQ WKH SUHVLGHQWLDO HOHFWLRQV

Š„sØŠjŒmØŁnnØnßä‚Ł~ºåiàâ ynØìnØ ƒ æià‚Ø iŒmØŁ~‚sØfl “…\L“…Q8uQVL“VDPqEZŽ oJR W…KQL“ KQ…QHLQ QuQSiP\L TXDOL1FDWLRQWHVWH[DP2%- RQH\HDU WZRWLPH KROG)87 U7KHUH ZLOO EH WZR TXDOL1FDWLRQ H[DPV SHU \HDUV

7KH FRPELQHG VSHFXODWLYH DQG IXWXUH PDUNHU OpLQPŽ UZLOO SUREDEO\ ZLOO FHUWDLQO\V LV XVHG ZLWK WKLUG SHUVRQ VXEMHFWV LQWHUFKDQJHDEO\ ZLWK WKH VLPSOH IXWXUH PDUNHU PŽ :LWK 1UVW DQG VHFRQG SHUVRQ VXEMHFWVOpLQPŽFDQ UHSODFH VLPSOH PŽ XVXDOO\ LQ LQ FRQQHFWLRQ ZLWK PRGDO DX[LOLDULHV VXFK DVPt UFDWFK GR ZLWKRXW LQWHQWLRQVQDLQUEH FDSDEOHV DQG RWKHUV 7KH IRUPOpLQPŽ OLNH PŽ RFFXUV LQ TXHVWLRQV RQO\ LQ WKH ZHDN IRUPOpLQP… RU QRPLQDOL]HGOpLQ KPD WKRXJK LW LV UDUHO\ XVHG LQ LQWHUURJDWLYH FRQWH[WV ,W GRHV QRW VHHP WR DGG PRUH WR WKH H[SUHVVLRQ EHVLGHV HPSKDVL]H WKH FRQ1GHQFH RI WKH VSHDNHU WKDW WKH HYHQW ZLOO SUREDEO\ FRPH DERXW

{Æ…àâ‡ßoàâ„mØ „ìmØçiàâ iŒ‚‚â}ØŁ‚à…à‚Ø炃Øfl GLOR>D V8R\LQ ïtQJR Q…Pi PzXQPtOpLQPŽ WKLVDVRQO\ VD\LI ’(32%- ) KDWHFDWFK63(&)87 U,I LW LV OLNH WKLV Q WKLV JRHV RQ WKLV ZD\ , ZLOO HQG XS KDWLQJ \RXV

‚}iØî}Øoàâ mÞyàâ…sØŁ Šå…àâ jæïi„…à‚Ø炃Øfl P…QŽS8\DQ V8R ÔDGy OŽ o “Ž oOR N8DQ8i\iOpLQPŽ WRPRUURZ VD\ )$0$663/ DOVR WKDWDV UHFHLYH3/JHW

63(&)87 U7RPRUURZ ZH ZLOO DOVR SUREDEO\ EH WDUJHWHG OLNH WKDW OLNH WKHPV

Šå{Æj…â~Øìà~Ø…àâiØ„mØ ä}ßiØn}nØ ƒ jâiàâ z~Øî‚mØ„…à‚Ø炃Øfl “Ž oGL N8…ORX“ KQHL“ODL“\LQ QDX“ V…QL“ WKDW EXWWRQ SUHVVIROORZLI EHKLQG V\VWHP

KQ…N8~JR W8D“ P\LQ\iOpLQPŽ WZR&/)2%- SLOHXS VHHJHW63(&)87

U,I \RX SUHVV WKDW EXWWRQ \RX ZLOO SUREDEO\ JHW WR VHH WZR PRUH V\VWHPVV

Šå{Æ‚ìß nâæn‚ØŁàâmØ~Þ…à‚Ø炃Øfl “Ž oGLKPD VRXQ]jQQDLQEDOpLQPŽ WKDWDW LQYHVWLJDWHFDSDEOH,0325763(&)87 U<RX FDQ SUREDEO\ LQTXLUH WKHUHV

jmØ€ŒßŁyàâ…sØŁ ïiߣªŁ~Þ…à‚Ø炃Øfl N8…P\jGy OŽ o QjEEDOpLQPŽ $663/ DOVR KHDUHYHU,0325763(&)87 U<RXVYH SUREDEO\ DOVR KHDUG DERXW LWV

„ìmØm„åæiÆŁiŒ…à‚Ø炃Øfl ïLQ Ô…\Ž o8u QiOpLQPŽ KHOOELJ IDOO63(&)87 U<RXVOO SUREDEO\ VX3HU LQ KHOOV

,Q /LWHUDU\ %XUPHVH WKH IXWXUH SDUWLFOHP\L LV DGGHG WROpLQLQ WKH VDPH IXQFWLRQ

Š†yØŠzsØfi ‡ïiߣfi iâ…ߣ~å n‡sØyàâ äqŁyiØ…à‚Øç‚sØfl “…ZX““…W8Ž >…8j N…O…EŽ o Vi>LGy ]q WŽ“OpLQP\L FORWKHV VXJDU FKLFNSHD EHJLQ1)87

$663/ PDUNHW JRXS

63(&)87 U7KH SULFH RI FORWKLQJ VXJDU FKLFNSHDV HWF ZLOO JR XSV

~sß„sØyàâŁyiØä„ŁyºmØ ŠäzßiØŠiªî~…à‚Øç‚sØfl S\LQÑD\L WzWŽ“\qGZLQ “…W8DX““…NX S\~OpLQP\L DFDGHPLF DGYDQFH10/LQ VXSSRUW GR63(&)87 U,W ZLOO EH KHOSIXO IRU DFDGHPLF SURJUHVVV

7KH IXWXUH PDUNHU LQ FRPELQDWLRQ ZLWK WKH DVSHFW PDUNHUVWæb GæbUFRQWUDVWLYH FKDQJHV DQG“zXQ UPRUH IXUWKHU LQ DGGLWLRQ DJDLQV DGGV WKH QRWLRQ RI ULP PHGLDWH IXWXUHV DQG UQRQVSHFL1HG IXWXUHV UHVSHFWLYHO\ 7KH FRPELQDWLRQ Wæb GæbPŽLQGLFDWHV WKDW DQ HYHQW LV MXVW DERXW WR KDSSHQ VRPHWKLQJ LV WKH FDVH UIURP WKLV PRPHQW RQV HPSKDVL]LQJ WKH FRQWUDVW WR WKH SUHVHQW VLWXD WLRQ ZKLOH“zXQPŽ GHQRWHV DQ HYHQW WKDW LV VWLOO WR WDNH SODFH DW VRPH WLPH LQ WKH IXWXUH 7KH WLPH RI RFFXUUHQFH RI WKH HYHQW LV EDFNJURXQGHG DQG QRW QHFHVVDULO\ VSHFL1HG

î‚}Øî‚}Øî~}Øïinàâ ‚àâŁjŒ~Øäyß炃Øfl P\DQP\DQ S\DQ8i]y Pz Q8RX“WæbPŽ IDVWIDVW UHWXUQ3/$’+257 VN\ JHWGDUN&2175)87 U+XUU\ XS OHWVV JR KRPH LWVV JHWWLQJ GDUNV

ìnØiâ}Øäyß炃Øfl KQL“ NRXQGæbPŽ \HDU DOO&2175)87 U,W LV VRRQ JRLQJ WR EH WKH HQG RI WKH \HDUV

î‚}Ø‚ß‚ìß ä÷iŁ†ƒØi{Øäyº ‡âæŁàâmØäyß炃Øfl P\DQPDKPD QZqZŽND“WZH ,zXQQDLQGæbPŽ 0\DQPDUDW GHEWEX\FDUG3/ XVHFDSDEOH&2175)87 U:H ZLOO VRRQ EH DEOH WR XVH FUHGLW FDUGV LQ 0\DQPDUV

nØŁnߣïisØ玣‚ƒØfl VuQ]jQt“zXQPŽ FRQVLGHUORRNIXUWKHU)87 U,VP JRLQJ WR WKLQN DERXW LW 1UVWV

ä„ßiØyâ}ØŁ ä…łßiØ…sØ…àâiØŽŁ‚ƒØfl \DX“WzXQ ïDX“OŽODL““zXQPŽ DUULYHZKLOH ZDONJRURXQGIROORZIXUWKHU)87 U:KLOH , DP KHUH ,VP JRLQJ WR YLVLW DURXQGV

$VSHFW GHVFULEHV WKH WHPSRUDO VWUXFWXUH RI DQ HYHQW 8QOLNH WHQVH DVSHFW GRHV QRW SRVLWLRQ WKH HYHQW DEVROXWHO\ LQ WLPH EXW IRFXVHV RQ WKH GHYHORSPHQW DQG SURFHVV RI DQ HYHQW

$Q HYHQW RU VLWXDWLRQ FDQ EH GHVFULEHG DV D UQHZ VWDWH RI D3DLUVV WKDW LV DV D VWDWH RI D3DLUV WKDW FRPHVFDPH DERXW WKURXJK D SUHYLRXV FKDQJH 7KH FKDQJH LWVHOI LV EDFNJURXQGHG WKH IRFXV LV RQ WKH QHZ VLWXDWLRQ 7KH QHZ VWDWH RI D3DLUV FDQ EH LQ WKH SDVW SUHVHQW RU IXWXUH

7KH VWDWXV PDUNHU SL ELGHQRWHV D UQHZ VLWXDWLRQV DIWHU D FKDQJH 7KH QHZ VLWXDWLRQ LV XVXDOO\ RQH WKDW KDV EHHQ WDONHG DERXW SUHYLRXVO\ RU WKDW ZDV H[SHFWHG WR KDSSHQ DW VRPH SRLQW 7KH PDUNHUSL ELFDQ H[S HVV WKDW WKH EHJLQQLQJ RI D VLWXDWLRQ LV FRPSOHWH WKDW LV WKH VLWXDWLRQ KDV IXOO\ FRPH DERXW 3RVVLEOH (QJOLVK WUDQVODWLRQV LQ WKLV FDVH LQFOXGH UDOUHDG\V DQG UE\ QRZV

‚nߣäyß灪Łfi †ð~Æfl P…VjGæbE ZiEL 1(*HDW&21751(* IXOO16,7 U,VP QRW HDWLQJ DQ\PRUH ,VP IXOO DOUHDG\V

{Æ‚ìßî‚}Ø‚ßäßmØ犇nØ „ƒªàâmØ~Þð~Æfl GLKPD P\DQPDS8iXQ “…,L“ \i\XQDLQEDEL WKLVDW 0\DQPDUIRQW QHZ JHWWDNHFDSDEOH,0325716,7 U+HUH QHZ %XUPHVH IRQW LV DYDLODEOH IURP QRZ RQV

i‚ØŁàâŁy}ØŁ‚ìß ‚â}ØyàâmØŁŠ˛„߃ØimØŁ„ìmØŁ‡ºßŁð~Æfl NjQ\zGjQKPD PRXQGjLQ“DQG…\Ž NuQïuQ>ZjEL FRDVWOLQHDW VWRUPGDQJHUIU HIURPFOHDUJR16,7 U7KH ULVN RI VWRUP RQ WKH FRDVW LV FOHDUHG QRZV

:LWK TXDQWL1HU SKUDVHV WKH VDPH PDUNHU LQGLFDWHV WKDW D FHUWDLQ DPRXQW RI WKH DFWLYLW\ KDV EHHQ FDUULHG RXW WKRXJK XVXDOO\ WKLV LV QRW WKH HQG RI LW $JDLQ (QJOLVK UDOUHDG\V DQG UE\ QRZV DUH RIWHQ DGHTXDWH WUDQVODWLRQV

iŒ~؇âæŁ‡à}ØŁiâ}؇ºßŁð~Æfl QD“ ,zXQ>qLQ NRXQ>ZjEL .\DW WKUHHKXQGUHGWKRXVDQG DOOJR16,7 U, KDYH DOUHDG\ VSHQW WKUHH KXQGUHG WKRXVDQG .\DWV

oÆŁ„ÆŁƒßŁ‚ìß ä‡oâæŁ‡ª ¥ ‡à}ØŁäiŒßØð~Æfl V8uUu\jKPD ,HV8zXQ>X W…,qLQ QæEL 6\ULDDW GLHSHUVRQ RQHKXQGUHGWKRXVDQG EH\RQG16,7 U7KHUH DUH DOUHDG\ RYHU NLOOHG LQ 6\ULDV

Š‡iØi “⁄ ä…ßiØ „ìàð~Æfl “…,Ž“ Q8DX“V8ŽODX“ ïtEL OLIH VL[W\DVPXFKDV H[LVW16,7 U6KH LV DURXQG \HDUV ROGV

,Q RWKHU FRQWH[WV WKH PDUNHUSL ELGHQRWHV WKH HQG RI DQ DFWLYLW\ DQG WKH HQVX LQJ VWDWH 7KLV UHDGLQJ RFFXUV ZLWK SXQFWXDO YHUEV WKDW GRQVW KDYH D WHPSRUDO GXUDWLRQ VXFK DV,H UGLHV\DX“ UDUULYHVSDX“UEXUVW H[SORGHV DQG RWKHUV 7KH UHVXOWDWLYH RU FRPSOHWLYH PHDQLQJ LV DOVR GRPLQDQW ZLWK FHUWDLQ DX[LOLDULHV VXFK DVSuU1QLVKHGVODL“UIROORZ GR ZLWKRXW IXUWKHU FRQVLGHUDWLRQ MXVWV,Zj UJRV DPRQJ RWKHUV

‡ªiàâ äß…âæŁinߣjºmØç ƒ ìnØ~àyØ…àâiØð~Æfl ,~JR EæoOzXQJ…]jJZtQ KQ…KQL“ SHL“ODL“SL ’(32%- IRRUEDOOSOD\SHUPLVVLRQ WZR\HDU FORVHIROORZ16,7 U+H KDV QRZ EHHQ EDQQHG WR SOD\ IRRWEDOO IRU WZR \HDUVV

m…ŒmØ{xØäïißmØç ä‡oâæŁ‡ª '⁄⁄⁄ äiŒß؇ºßŁð~Æfl Ô…O\LQGDQ8iXQ ,HV8zXQ>X ÔjGDXQ Qæ>ZjEL HDUWKTXDNHEHFDXVH GLHSHUVRQ 1YHWKRXVDQG EH\RQGJR16,7 U7KHUH DUH DOUHDG\ RYHU GHDWKV EHFDXVH RI WKH HDUWKTXDNHV

,Q /LWHUDU\ %XUPHVH WKH 16,7 PDUNHUSLLV RIWHQ IROORZHG E\ D SOHRQDVWLF FRSXOD

‚à‚àâ}ØŁyºmØ î‚}Ø‚ßnßn}nØiàâ Š‡âæŁî~àâmØð~Æîn؇sØfl PtPt S8zXQGZLQ P\DQPD]DV…QL“NR “…,zXQ VHOI SKRQHLQ 0\DQPDUWH[WV\VWHP2%- 10/XVH

S\~QDLQEL S8\L“,L GRFDSDEOH16,7 EH1)87

U1RZ \RX FDQ XVH WKH %XUPHVH WH[W V\VWHP RQ \RXU SKRQHV

ƒä}yºmØ~}ØŁ‚ŒßŁä~Ł~àâîjmØŁiàâi‚ÖߊìæŠî~ߣyºmØiŒmØç‡âæŁä}ïið~Æîn؇sØfl \…QpGZLQ SjQP\j SqSy8uQJR J…ED “…KQiQ WRGD\LQ 2RZHU3/ JLYHVHQG10/2%- ZRUOG WKURXJKRXW

“…S\jGZLQ QtQ,zXQQH8iEL S8\L“,L &/)LQ KDYHKDELWXVHVWD\3/16,7 EH1)87

U7RGD\ VHQGLQJ 2RZHUV LV D FRPPRQ SUDFWLFH DOO RYHU WKH ZRUOGV

7KH FRPELQDWLRQ RI WKH FRQWUDVWLYH PDUNHU æb GæbZLWK WKH QRQIXWXUH PDUNHU WŽ GŽ GHQRWHV D QHZ VLWXDWLRQ WKDW KROGV DW WKH WLPH RI VSHDNLQJ 7KH H[SUHV VLRQ Wæb GæbGŽHPSKDVL]HV WKH FRQWUDVW WR WKH SUHFHGLQJ VWDWH RI D3DLUV

~àâiØoæmÞŁäzßmØ~åiŒ}ØäyßçyƒØfl SDL“V8DQ ÔjGDXQ EŽ o QDQGæbGŽ PRQH\ 1YHWKRXVDQG (;&/ UHPDLQ&21751)87 U, KDYH RQO\ 1YH WKRXVDQG OHIWV

7KH IROORZLQJ H[DPSOHV IURP /LWHUDU\ %XUPHVH VKRZ WKH VDPH FRQVWUXFWLRQ ZLWK WKH QRQIXWXUH PDUNHU FKDQJHG WR ,L >L

ä}ßiØoâæŁ° äoŁâæŠä„Łä~íj}ØŁ‡àâ ä„ßiØjåç„äyßç‡sØfl QDX“V8zXQKQDL“ V8q\RXQ “…\qEæJjQ>y \DX“N8Ž b\iGæb>L EHKLQGHQGLQ KRVSLWDO HPHUJHQF\

URRPWR DUULYH’,63/JHW &21751)87

U+H HQGHG XS DW WKH KRVSLWDO HPHUJHQF\ XQLW DW WKH HQGV

„zߣnzºiØ‚ì iŒä}ßØ…sØŁ ‡iØî~mØŁjŒàâmØäyßç‡sØfl \…W8j Vi W8ZŽ“KPi Q…Qæ OŽ o ,Ž“S\uQQ8iQDLQGæb>L WUDLQ EHJLQ H[LW5(675 0 DOVR EUHDWKVWURQJSXWGRZQ

FDSDEOH&21751)87 U2QO\ ZKHQ WKH WUDLQ VWDUWHG OHDYLQJ , FRXOG VLJKV

$ VWDWH RI D3DLUV FDQ EH GHVFULEHG DV XQFKDQJHG IRFXVLQJ RQ WKH FRQWLQXLW\ IURP DQ HDUOLHU VWDWH RI D3DLUV

&RQWLQXHG VLWXDWLRQV DUH PRVW FRPPRQO\ H[SUHVVHG LQ QRQIXWXUH FRQWH[WV E\ WKH DVSHFWXDO PDUNHU ,q >q FRPELQHG ZLWK WKH QRQIXWXUH DVSHFW PDUNHU 7KH IRUP ,q >qGŽ GHQRWHV DQ XQFKDQJHG VLWXDWLRQ WKDW VWLOO KROGV DW WKH WLPH RI UHIHUHQFH ZKLFK PD\ EH WKH WLPH RI VSHDNLQJ RI DQ\ SRLQW LQ WKH SDVW ,W IUHTXHQWO\ FRPELQHV ZLWK WKH LPSHUIHFWLYH DX[LOLDU\Q UV D\V ,Q VRPH FRQWH[WV LW PD\ DOVR KDYH IXWXUH UHIHUHQFH 7KH IRUP LV WKH VDPH LQ /LWHUDU\ %XUPHVH ZLWK WKH UHOHYDQW SDUWLFOHV FKDQJHG WR WKHLU OLWHUDU\ IRUPV

ß†ƒØn„ßäyº„ìà䇣…åfl ED ZŽ]…\DGZH ït>q OŽ o ZKDW EX\WKLQJWR3/ H[LVW\HW &4 U:KDW HOVH GR ZH KDYH WR EX\"V

{Æ…iØ‚ìyØ ‡âæŁ…àâ„䇣…ߣfl GL OŽ“KPD“ ,zXQOy \i>q Oj WKLV WLFNHW XVH68% JHW\HW 34 U,V WKLV WLFNHW VWLOO YDOLG"V

oæ~mØ‚ìß…sØŁ Š}sØŁmƒØnàâzàâmØŁä}䇣‡sØfl ]…ELQKPD OŽ o “…QŽ oÔŽ VRW8jLQQH>q>L KDLU723 DOVR DOLWWOH ZHWVWD\\HW1)87 U7KH KDLU LV VWLOO D OLWWOH ZHWV

ä„ß~° ä{‡˛„€ˆâ‡ây‚ŒßŁiàâ ä…ç…ßjåç䇣‡sØfl “~\æoSiKQDL“ GH,DQG…UiEDK~,~WiP\jJR OpODJŽ b>q>L (XURSHLQ WUDYHOLQJJHQHUDONQRZOHGJH3/2%- VWXG\’,63/\HW

1)87 U+H DOVR H[SORUHG (XURSH WR KDYH VRPH NQRZOHGJH RI WKH UHJLRQV

pßyØiߣ ¥¥ iߣ àâiØiªŁ„}Ø iŒ}Ø„ìàä}䇣‡sØfl ]D“Nj V8Ž bW…Jj \DL“N\DQ QDQïtQH>q>L 1OP HOHYHQ&/) VKRRWVRWKDW UHPDLQH[LVWVWD\\HW1)87 U7KHUH DUH VWLOO HOHYHQ PRYLHV OHIW WR EH VKRWV

7KH IRUPV ,q >qGŽ DQG Wæb GæbGŽERWK FDQ EH XVHG WR GHVFULEH WKH VDPH VLWXD WLRQ WKRXJK ZLWK GL3HUHQW FRQQRWDWLRQV DQG HPSKDVLV 7KH WZR DQVZHUV WR WKH IROORZLQJ TXHVWLRQ ERWK KDYH WKH VDPH VHPDQWLF PHDQLQJ EXW WKH\ GL3HU LQ ZKDW LV DFWXDOO\ H[SUHVVHG 7KH 1UVW RQH ZLWK WKH UXQFKDQJHG VLWXDWLRQV PDUNHU PDNHV D UDWKHU QHXWUDO VWDWHPHQW U7KHUH LV VWLOO VRPH PRQH\ OHIWV 7KH XVH RI WKH FRQWUDVWLYH PDUNHUWæb Gæb RQ WKH RWKHU KDQG HPSKDVL]HV WKH FRQWUDVW WR WKH SUHFHGLQJ VLWXDWLRQ ZKHQ WKHUH ZDV PRUH PRQH\ OHIW 7KLV VWUHVV RQ WKH FRQWUDVW LPSOLHV WKDW WKH DPRXQW OHIW LV VHHQ DV LQVX4FLHQW RU OHVV WKDQ RQH ZRXOG ZLVK RU H[SHFW

~àâiØo恃Øä…ßiØiŒ}Ø…åfl SDL“V8DQ EŽODX“ QDQ OŽ o PRQH\ KRZPXFK UHPDLQ &4 U+RZ PXFK PRQH\ KDYH \RX OHIW"V

ìnØä‡ßmØŁiŒ}Ø䇣yƒØfl KQ…,jXQ QDQ>qGŽ WZRWHQWKRXVDQG UHPDLQ\HW1)87 U, VWLOO KDYH WZHQW\ WKRXVDQG OHIWV

ìnØä‡ßmØŁ~åiŒ}ØäyßçyƒØfl KQ…,jXQ EŽ o QDQGæbGŽ WZRWHQWKRXVDQG (;&/ UHPDLQ&21751)87 U, KDYH RQO\ WZHQW\ WKRXVDQG OHIWV

)XWXUHUHIHUHQFH 7KH FRPELQDWLRQ“zX PŽ FDQ EH XVHG WR GHQRWH D VLWXDWLRQ WKDW ZLOO JR RQ LQ WKH IXWXUH 8QOLNH VLWXDWLRQV GHVFULEHG E\ ,q >qGŽ V WXDWLRQV GHVFULEHG E\ “zXQPŽ DUH VHHQ DV FHDVLQJ DQG WKHQ UHVXPLQJ DW WKH WLPH RI UHIHU HQFH LQ WKH IXWXUH ,Q /LWHUDU\ %XUPHVH WKH FRQVWUXFWLRQV DUH WKH VDPH DV LQ WKH FROORTXLDO ODQJXDJH ZLWK WKH UHOHYDQW PDUNHUV FKDQJHG WR WKHLU OLWHUDU\ IRUP

ä}ßiØìnØî~}؅ߎŁ‚ƒØä}ßØfl QDX“ KQL“ S\DQOD“zXQPŽ Qæ EHKLQG \HDU UHWXUQFRPHIXUWKHU)87 &63 U:HVOO FRPH EDFN DJDLQ QH[W \HDU RN"V

z‚mØŁz~؃ªŽŁ‚…ߣfl W8…PuQ W8D“ \X“zXQP…Oj FRRNHGULFH SLOHXS WDNHIXUWKHU)8734 U’R \RX ZDQW PRUH ULFH"V

‚}iØî}؇ºßŁ…àâ„䇣yƒØfl P…QŽ“S8\DQ ,ZjOy \i>qGŽ WRPRUURZ JR68% JHW\HW1)87 U7KHUH LV VWLOO D FKDQFH WR JR WRPRUURZ LI ZH PLVVHG LW WRGD\V

‚}iØî}؇ºßŁ„ŽŁ‚ƒØfl P…QŽ“S8\DQ ,Zj\i“zXQPŽ WRPRUURZ JRJHWIXUWKHU)87 U7RPRUURZ ZH KDYH WR JR DJDLQV

7KH PRVW FRPPRQ PHDQV WR GHQRWH HYHQWV WKDW DUH RQJRLQJ DW WKH WLPH RI UHIHUHQFH LV E\ DGGLQJ WKH SRVWYHUEDO LPSHUIHFWLYH DX[LOLDU\QHUVWD\V ZLWK RU

ZLWKRXW WKH DVSHFW PDUNHU,q >q \HW VWLOOV 7KH LPSHUIHFWLYH PDUNHUQHUVW \V LV FRPSDWLEOH ZLWK QRQIXWXUH IXWXUH DQG QHZ VLWXDWLRQ VWDWXV PDUNHUV DV ZHOO DV ZLWK QHJDWLYH H[SUHVVLRQV ,Q QHJDWHG H[SUHVVLRQV WKH XVXDO SDWWHUQ LV 9P…QH WKRXJK VRPH VSHDNHUV DQG VRPH UHJLRQV SUHIHUP… 9 QH

î‚}Øî‚}؇ºßŁä… ŠäänßmØçä}yƒØfl P\DQP\DQ ,Zj OH “…S8H ViXQQHGŽ IDVWIDVW JR (03+ IDWKHU ZDLWVWD\1)87 U+XUU\ XS )DWKHU LV ZDLWLQJV

î~}Ø…ßä}ßØfi mÞ{Æ‚ìßänßmØçä}‚ƒØfl S\DQOD Qæ ÔD GLKPD ViXQQHPŽ UHWXUQFRPH &63 )$0 WKLVDW ZDLWVWD\)87 U&RPH EDFN ZLOO \RX" ,VOO EH ULJKW KHUH ZDLWLQJ IRU \RXV

Šà‚Øî~}Øïinàâfi ‡ªyàâz‚mØŁnߣä}ð~Æfl “HLQ S\DQ8i]y ,XGy W8…PuQ VjQHEL KRXVH UHWXUQ3/$’+ 3/ FRRNHGULFH HDWVWD\16,7 U/HWVV JR KRPH WKH\VUH DOUHDG\ HDWLQJV

äoßç‚ä}}åfl V8æbP…QHQŽ b SOD\1(*VWD\352+ U’RQVW SOD\V

,Q FRPELQDWLRQ ZLWK WKH DVSHFW PDUNHU,q >q U\HW VWLOOV PRUH HPSKDVLV LV SODFHG RQ WKH XQFKDQJHG VWDWH RI D VLWXDWLRQ 7KH RQO\ VWDWXV PDUNHU WKDW PD\ RFFXU ZLWK WKLV FRQVWUXFWLRQ LV WKH QRQIXWXUH PDUNHUWŽ GŽ

‡ª‡‚ÆŁi yi¾‡àâ…ØyiØä}䇣yƒØfl ,~ ,…PuJi WŽ“N…,R WŽ“QH>qGŽ ’(3 GDXJKWHU6%- XQLYHUVLW\ JRXSVWD\\HW1)87 U+LV GDXJKWHU LV VWLOO VWXG\LQJ DW XQLYHUVLW\V

jâŠjŒà}Øzà ‡ªiàâ‡yà„ä}䇣yƒØfl N8~ “…Q8HLQ W8t ,~JR >…Gt\iQH>qGŽ QRZ WLPH XQWLO ’(32%- DZDUHQHVVJHWVWD\\HW1)87 U, VWLOO PLVV KHU QRZV

6LPLODUO\ WKH QRQ1QLWH IRUPV 9QH]Ž o DQG 9QHGzXQFDQ EH XVHG WR H[SUHVV SURJUHVVLYH QRWLRQV ZLWK D FRQQRWDWLRQ RI UVWLOOV 7KHVH DUH IUHTXHQWO\ IRO ORZHG E\ WKH SDUWLFOHVSD EDPDUNLQJ ULPSRUWDQFHV RUSŽ o EŽ oPD NLQJ UH[FOX VLYHQHVVV ,Q /LWHUDU\ %XUPHVH WKH FRSXODS8\L“,L LV VXDOO\ DGGHG

VWLOO (;&/

U7KHUH DUH VWLOO PDQ\ WKLQJV WKDW DUH QRW FRQYHQLHQW \HWV

iä…ŁäyºŠà‚Ø‚ìßänßmØçä}yâ}ØŁfl N8…OqGZH “HLQKPD ViXQQHGzXQ FKLOG3/ KRXVHDW ZDLWVWD\VWLOO U7KH FKLOGUHQ DUH VWLOO ZDLWLQJ DW KRPHV

Šà‚ØäqŁäyº î‚mØçä}oå~åfl “HLQ]qGZH P\tQQH]Ž o EŽ o KRXVHPDUNHW3/ KLJKVWD\VWLOO (;&/ U7KH SULFH RI KRXVLQJ LV VWLOO KLJKV

ŠàâßŁ‚ߣi …ªæiàiØ‚ŒßŁä}oå~åfl “REjPjJi OXQDL“ P\jQH]Ž o EŽ o 2EDPD6%- SHUVRQOLNH PXFKVWD\VWLOO (;&/ U2EDPD LV VWLOO YHU\ SRSXODUV

~„à‡yØ‚æiàiØ‚ìß nà⣄à‚Øä}yâ}ØŁ~åfl S…UHL“,D“ P…QDL“KPD Vz\HLQQHGzXQ EŽ o DXGLHQFH 1(*OLNH)8710/ IHDUVWD\VWLOO (;&/ U, DP VWLOO FRQFHUQHG WKDW WKH DXGLHQFH PD\ QRW OLNH P\ ZRUNV

10/3/ DOVR FRQQHFW EHVWD\VWLOO (;&/

U7KHUH DUH VWLOO FDU DFFLGHQWVV

yºiØäîjiàâiØfi ‚iàâiØiàâ ä…ç…ßä}yâ}ØŁ~Þfl WZŽ“Q8HNDL“ P…NDL“NR OpODQHGzXQ ED PHDVXUHXSWRH[SHFWDWLRQ 1(*

PHDVXUHXS2%- VWXG\VWD\ VWLOO

,0 3257

U:H DUH VWLOO H[DPLQLQJ WKH VLWXDWLRQ WR 1QG RXW ZKHWKHU LW ZLOO EH SUR1WDEOH RU QRWV

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

oâæŁîyØjŒiØiàâ änßmØçoàâmØŁä}oåîn؇sØfl V8zXQS8\D“Q8Ž“NR ViXQV8jLQQH]Ž o S8\L“,L GHFLGH10/2%- ZDLWVWD\VWLOO EH1)87 U:H DUH VWLOO ZDLWLQJ IRU WKH GHFLVLRQ WR EH PDGHV

ƒ¥ ŽŁä‡oâæŁiß ¥ ŽŁ ä~ŒßiØä}oåîn؇sØfl KQ…V8Ž bW…“ ,HV8zXQJD W…“ S\DX“QH]Ž o S8\L“,L WZHQW\RQH&/) GLHZKLOH RQH&/) GLVDSSHDUVWD\

VWLOO EH1)87

U7KHUH DUH GHDWKV DQG RQH SHUVRQ LV VWLOO PLVVLQJV

7KH SRVWYHUEDO PDUNHUN8Ž b JŽ bKDV D QXPEHU RI DSSDUHQWO\ GL3HUHQW IXQFWLRQV ZKLFK FDQ DSSUR[LPDWHO\ EH VXPPHG XS XQGHU WKH ODEHO UGLVSODFHPHQW LQ VSDFH DQGRU WLPHV 7KHUH LV DOVR D FRQQRWDWLRQ RI UWRZDUGV WKH FHQWHU RI LQWHUHVWV RU ULQYROYHPHQW RI WKH 1UVW RU VHFRQG SHUVRQV WKDW LV WKH DFWLYLW\ RU HYHQW LV GLUHFWHG WRZDUGV WKH VSHDNHU RU DGGUHVVHH 7KH GL3HUHQW FRQWH[WV LQ ZKLFKN8Ž b JŽ bRFFXUV WULJJHU GL3HUHQW LQWHUSUHWDWLRQV DQG QR XQLYHUVDO UHDGLQJ FDQ EH JLYHQ 7KLV PDUNHU LV VRPHWLPHV XVHG WRJHWKHU ZLWK WKH QRQIXWXUH PDUNHUWŽ GŽ DV D VWDQGDUG UHQGHULQJ RI SDVW WHQVH WKRXJK WKH GLVSODFHPHQW PDUNHU GRHV QRW KDYH WKH QRWLRQ RI USDVW WHQVHV LQ LWVHOI

$FWLYLW\GLUHFWHGWRZDUGVRUDWWKHFHQWHURILQWHUHVW 7KH DFWLYLW\ LQYROYHV D PRYHPHQW IURP DQRWKHU SODFH WRZDUGV WKH FHQWHU RI LQWHUHVW W\SLFDOO\ WKH ORFDWLRQ RI WKH VSHDNHU 7KH GLVSODFHPHQW PDUNHU LV DOVR XVHG WR LQGLFDWH WKDW DW OHDVW RQH SDUWLFLSDQW UHPDLQV DW WKH FHQWHU RI LQWHUHVW ZKLOH DW OHDVW RQH RWKHU SDUWLFLSDQW OHDYHV WKH SODFH

z‚mØŁnߣjŒmØ„mØ …ßjåçä…fl W8…PuQ Vj8LQ\LQ ODJŽ b OH FRRNHGULFH HDWZDQWLI FRPH’,63/ (03+ U,I \RX ZDQW WR HDW MXVW FRPH KHUHV

iı}Ø‚Šà‚Ø‚ìßä}jå炃Øfl Q…Pi “HLQKPD QHJŽ bPŽ ) KRXVHDW VWD\’,63/)87 U, ZLOO VWD\ EDFN DW KRPH ZKLOH \RX JR RXWV

$FWLYLW\GRQHDWDQRWKHUSODFH ,I WKH DFWLYLW\ LV GRQH E\ WKH VSHDNHU DW D GL3HUHQW SODFH IURP WKH RQH RI WKH VSHHFK DFW WKH DFWLYLW\ PD\ EH PDUNHG E\N8Ž b JŽ b WR HPSKDVL]H WKH IDFW WKDW WKH\ GLG VRPHWKLQJ DQG WKHQ PRYHG RQ WR WKH SUHVHQW SODFH

iı}Øäyß؇ªiàâ~àâiØoæä~ŁjåçyƒØfl Q…Qæ ,~JR SDL“V8DQ SqJŽ bGŽ 0 ’(32%- PRQH\ JLYH’,63/1)87 U, JDYH KLP WKH PRQH\ EDFN WKHUHV

FDNH VQDFN

RQH&/) GR’,63/ )87

5(3 VSHDN’,63/ 1)8734

U’LG \RX WHOO WKHP ,VG PDNH D FDNH IRU \RX DQG EULQJ LW KHUH"V

‚˛ä…Ł‚ìß Š„‚ØŁä~ŒßØjåçyƒØfl PjQG…OqKPD “…\jQ S\æJŽ bGŽ 0DQGDOD\DW YHU\ KDSS\’,63/1)87 U, KDG D JUHDW WLPH LQ 0DQGDOD\V

ä…ƒßØiºmØŁ‚ìß Šäî‚ßi؇æ oªsæjåçyƒØfl OH\LQJZuQKPD “…P\DX“,DQ V8XÑDQJŽ bGŽ DLUSODQH1HOGDW FDQQRQVRXQG QRLV\’,63/1)87 U7KHUH ZHUH FDQQRQ1ULQJ QRLVHV DW WKH DLUSRUWV

QLJKW3/ UDWKHU PXFK’,63/)87 WKLQN1)87

U+H PXVW KDYH KDG TXLWH D IHZ KDSS\ QLJKWVHYHQLQJV , WKLQNV

{Æ…àâ}å~å …ªînØjåçyƒØfl GLORQŽ b EŽ o OX S8\L“N8Ž bGŽ WKLVDVZLWK (;&/ SHUVRQ EH’,63/1)87 U,Q WKDW ZD\ , EHFDPH DQ DGXOWV

7KH GLUHFWLRQDO DX[LOLDULHVODUFRPHV DQG,Zj UJRV DUH QRW RQO\ XVHG WR LQGL FDWH GLUHFWLRQ LQ VSDFH EXW DOVR GLUHFWHG FKDQJHV RI VLWXDWLRQV LQ WLPH 7KH\ GHQRWH PRYHPHQW WRZDUGV DQG DZD\ IURP WKH FHQWHU RI LQWHUHVW UHVSHF WLYHO\ ,Q QHJDWLRQ WKH SDWWHUQ LV XVXDOO\ 9P… ’,5 WKRXJK VRPH VSHDNHUV SUHIHUP… 9’,5 7KHUH VHHPV WR EH VRPH UHJLRQDO YDULDWLRQ LQ WKH SUHIHUUHG SDWWHUQ

la ¶FRPH•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

äiŒßmØŁ‡ßŁäyº …‚ØŁä…łßiØ…ßyƒØfl QjXQ>jGZH OjQ ïDX“ODGŽ VWXGHQW3/ ZD\ ZDONFRPH1)87 U7KH VWXGHQWV FDPH KHUH RQ IRRWV

‡ªyàâz‚mØŁnߣ…ßyƒØfl ,XGy W8…PuQ VjODGŽ 3/ FRRNHGULFH HDWFRPH1)87 U7KH\ KDYH HDWHQ EHIRUH FRPLQJ KHUHV

zªŁzªŁîjߣîjߣniߣynØjâäî~ß…ßyƒØfl W8GQ8j8j ]…Jj W…N8~ S\æoODGŽ VSHFLDO ODQJXDJH RQH&/) VSHDNFRPH1)87 U+H WROG PH VRPHWKLQJ VSHFLDOV

Šä‚‡i؇߅ßð~Æ…ßŁfl “…PH ,Ž“,DODEL Oj PRWKHU UHOLHYHGFRPH16,7 34 U,V 0RWKHU IHHOLQJ EHWWHU QRZ"V

7KH SDWWHUQV LQ /LWHUDU\ %XUPHVH DUH WKH VDPH DV LQ WKH FROORTXLDO ODQJXDJH ZLWK WKH UHOHYDQW FKDQJHV LQ JUDPPDWLFDO PDUNHUV

î‚}Ø‚ßàâmØmæ° ŠmØyß}i؇âæŁnºå‚ yºmØiŒƒØ…߇sØfl P\DQPDQDLQÔDQKQDL“ “LQWDQŽ“ ,zXQVZŽ oKP~ WZLQQŽOD>L 0\DQPDUFRXQWU\DW LQWHUQHW XVH10/ PDNHSURJUHVV

FRPH1)87 U8VH RI WKH ,QWHUQHW QRZ SURVSHUV PRUH LQ 0\DQPDUV

ŠƒØäïißmØçoàâ‡sØiàâ o}ØŁnnØ„}Ø…àâŠ~؅߇sØfl “…EŽ8iXQ V8R>LJR V8jQVL“\DQ OR“D“OD>L ,17(5EHFDXVH VD\1)872%- H[DPLQHVRWKDW QHHGFRPH1)87 U,W KDV EHFRPH QHFHVVDU\ WR LQYHVWLJDWH WKH UHDVRQV ZK\ WKLV LV WKH FDVHV

nà‚Øäjí‚Š‡nØ‚ŒßŁ z~ØomØçä~íä~Þi؅߇sØfl VHLQN8æKP~ “…,L“P\j W8D“V8tQ SæSDX“OD>L FKDOOHQJH10/ QHZ3/ SLOHXSVWDFN DSSHDUEXUVWFRPH1)87 U1RZ WKHUH DUH QHZ FKDOOHQJHV WKDW KDYH DSSHDUHGV

θwà ðwà ¶JR• 7KH GLUHFWLRQDO YHUE,Zj UJRV GHQRWHV D PRYHPHQW DZD\ IURP WKH FHQWHU RI LQWHUHVW RU VSKHUH RI LQ2XHQFH RI WKH VSHDNHU $V LV WKH FDVH ZLWKODUFRPHV WKH FRQFUHWH PHDQLQJ RI,Zj UJ V LV DOZD\V SUHVHQW LQ LWV DEVWUDFW XVHV WRR $V SRVWYHUEDO DX[LOLDU\,Zj LV YRLFHG LQ DGHTXDWH HQYLURQPHQWV

DVPXFKDV VWH O WDNHH[LWUXQJR1)87

U+H UDQ DZD\ ZLWK DERXW PLOOLRQ .\DWV

1)8710/ )$0 5(3 VRIWVRIW

’,0 VSHDNJR\HW 1)87

)$0

U+H ZKLVSHUHG WR PH WKDW KLV KHDUW ZDV VKLYHULQJV

{ÆpßyØ…‚ØŁiàâ yØïisçØð~ÆŁ này؆mØnߣ‡ºßŁyƒØfl GL ]D“OjQJR S8D“QtEu VHL“ZLQ]j>ZjGŽ WKLV VWRU\2%- UHDGORRN6(4 LQWHUHVWHGJR1)87 U$IWHU UHDGLQJ WKLV VWRU\ , JRW LQWHUHVWHG LQ LWV

ŽŁäiŒßØ Š‡iØæiÆŁ‡ºßŁyßiàâ ‚‡à䇣ªŁfl “ Qæ “…,Ž“ Qu>ZjGDJR P…,t>qE XQFOH .\DZ OLIH ELJJR1)8710/2%- 1(*NQRZ\HW

1(* U, GLGQVW NQRZ WKDW 8QFOH .\DZ KDG DJHG WKLV PXFKV

iı}Øäyßç؇‚ÆŁä…Ł iæäißmØŁ‡ºßŁð~Æä~Þçfl Q…Qæb ,…PuOq NDQ NjXQ>ZjEL Eæb 0’(3 GDXJKWHU’,0 IRUWXQH JRRGJR16,7 ,16,67 U0\ GDXJKWHU KDV EHFRPH OXFN\ , FDQ WHOO \RXV

‡â~ØäoßmØäißmØŁynØäƒßiØînØäŠßmØæiàŁnߣ‡ºßŁ‚ƒØfl ,…\RX“V8DXQJjXQ W…\DX“ S8\L““DXQ Qz]j>ZjPŽ DFWRUJRRG RQH&/) EHVRWKDW PDNHH3RUWJR)87 U, ZLOO FRQWLQXH WU\LQJ WR EH D JRRG DFWRUV

,Q /LWHUDU\ %XUPHVH WKH FRQVWUXFWLRQV DUH VLPLODU LQ IRUP DQG IXQFWLRQ

~àâäoßmØä„ŁŠäoßiØŠŠâæysØäoßiØ‚ ŠmØ{àâ…â~Øäoßm؇ºßŁ‚sØfl SyV8DXQ\q “…V8DX““…“RXQ WŽV8DX“KP~ “LQGR ORX“V8DXQ>ZjP\L WUDQVSRUW D3DLU

LQIUDVWUXF WXUH

EXLOG10/ ,QGRQH VLD

GRJR)87

U,QGRQHVLD LV JRLQJ WR JR DKHDG ZLWK LWV SODQ RI EXLOGLQJ WUDQVSRUWDWLRQ LQIUDVWUXFWXUHV

VNLQ WLJKWZKLOH IDW3/ LQH[FHVV IDOOJR1)87

U7KDQNV WR WKLV PHGLFDWLRQ 6NLQ VHHPV WLJKWHU WKDQ EHIRUH DQG IDW LV UHGXFHGV

la DQGθwà ðwà FRPSDUHG ,Q PDQ\ FRQWH[WV ERWKODUFRPHV DQG,Zj >Zj UJRV FDQ EH XVHG DV DX[LOLDU\ :KLOH WKHUH LV D GL3HUHQFH LQ PHDQLQJ WKLV GL3HUHQFH LV VRPHWLPHV UDWKHU VXEWOH DQG QRW DOZD\V HDV\ WR FDWFK $OVR LW LV QRW REYLRXV KRZ WKH PHDQLQJ GL3HUHQFH LV WR EH GHVFULEHG EXW WKH OH[LFDO PHDQLQJV RI WKH GLUHFWLRQDOV VHHP WR EH SUHVHQW LQ WKH JUDPPDWLFDO IXQFWLRQV $ FKDQJH RI VWDWH H[SUHVVHG ZLWKODUFRPHV LV VHHQ DV OHVV FRPSOHWH VRPHWLPHV UDWKHU SRVLWLYH ZKLOH,Zj UJRV GHQRWHV D PRUH FRPSOHWH VRPHWLPHV QHJDWLYH SURFHVV 7KH IROORZLQJ FRQWUDVWLYH H[DPSOHV LOOXVWUDWH WKH GL3HUHQFH LQ PHDQLQJ EHWZHHQODUFRPHV DQG,Zj UJRV LQ GL3HUHQW FRQWH[WV

‡ªä}äißmØŁ…ßð~Æfl ,X QH NjXQODEL VWD\ JRRGFRPH16,7 U+H LV EHWWHU QRZV

‡ªä}äißmØŁ‡ºßŁð~Æfl ,X QH NjXQ>ZjEL VWD\ JRRGJR16,7 U+H KDV IXOO\ UHFRYHUHGV

‡ª†…ßyƒØfl ,X ZiODGŽ IXOOFRPH1)87 U6KH KDV EHFRPH IDW LWVV QLFHV

‡ª†‡ºßŁyƒØfl ,X Zi>ZjGŽ IXOOJR1)87 U6KH KDV EHFRPH IDW LWVV XJO\V

‡ª‡à…ßð~Æfl ,X ,tODEL NQRZFRPH16,7 U1RZ IRU VRPH UHDVRQV KH NQRZVV

‡ª‡à‡ºßŁð~Æfl ,X ,t>ZjEL NQRZJR16,7 U+H DOUHDG\ NQRZVV , GLGQVW DQW KLP WR NQRZ WKHUHVV QR QHHG WR WDON DERXW LW DQ\PRUH

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

iı}ØäyßØjŒmØŁî~sØ}ƒØ‚ìß ä}ªŁyƒØfl Q…Qæ Q8uQ S\LQŽKPD QHEGŽ 0 &KLQ ODQGUHJLRQDW VWD\HYHU1)87 U,VYH OLYHG LQ &KLQ 6WDWH EHIRUHV

‚º}ØnßnߣªŁ…ߣfl PXQ]D VjE Oj 0RQIRRG HDWHYHU 34 U+DYH \RX HYHU HDWHQ 0RQ IRRG"V

Šä‚„ì‚ØŁî~sØ}ƒØä„ßiتŁjŒmØyƒØyåçfl “…PH ïjQ S\LQŽ \DX“S88LQGŽ GŽ b PRWKHU 6KDQ ODQGUHJLRQ DUULYHHYHUZDQW1)87 4827 U0RWKHU VD\V VKH ZRXOG OLNH WR JR WR 6KDQ 6WDWH RQFH LQ KHU OLIHV

7KH IROORZLQJ WZR H[DPSOHV DUH LQ /LWHUDU\ %XUPHVH î‚}Ø‚ßç…iØ䄺ŁnmØŠ‡mØŁ æŁ}à‚ØçjåçªŁ‡sØfl P\DQPi OŽ“\Zq]LQ “…,uQ ïzXQQpLQJŽ bE>L 0\DQPD’(3 VHOHFW WHDP GHIHDWHGORZ’,63/HYHU1)87 U7KH 0\DQPDU 6HOHFWLRQ 7HDP ZDV RQFH GHIHDWHGV

zàâäoßmØŁ~ÞŁ° ‡ªŠjiØŠjå‚ŒßŁiàâ äßØî~jåçªŁ‡sØfl W8R V8jXQEj

WKDW DUWLFOHDW ’(3 GL4FXOW\3/2%- UHYHDO’,63/HYHU 1)87

U+H RQFH ZURWH DERXW KLV GL4FXOWLHV LQ WKDW DUWLFOHV

7KH FRPSOHWLYH DX[LOLDU\SuU1QLVKHGV FRPELQHG ZLWK WKH QHZ VLWXDWLRQ PDUN HUSL ELGHQRWHV FRPSOHWHG RU 1QLVKHG HYHQWV 7KLV SDWWHUQ LV QRW DYDLODEOH IRU VWDWLYH YHUEV RU VLWXDWLRQV ZLWK QR FRQFHLYDEOH HQGSRLQW 7KH FRPSOHWLYH DX[LOLDU\SuLV QRW YRLFHG DQG FDQ EH VHSDUDWHG IURP WKH PDLQ YHUE E\ WKH VXERUGLQDWRUOyDQG WKH QHJDWRUP… /LWHUDU\ %XUPHVH IUHTXHQWO\ DGGV WKH FRSXODS8\L“,L DIWHU WKH FRPSOHWLYH DX[LOLDU\Su

{Æä} ‡ymØŁnß‚ìß ä„Łzߣyßiàâä„ß yØð~ÆŁð~Æ…ßŁfl GL Qp >…GuQ

WKLV GD\ QHZV WH[WDW

ZULWHNHHS 1)8710/ 2%-

ZKDW DERXW

UHDG1QLVKHG16,7 34

U$QG ZKDW DERXW ZKDW LV ZULWWHQ LQ WKH QHZVSDSHU WRGD\ KDYH \RX UHDG WKDW"V

nߊâ~Ø ƒØìŠâ~Øä…ßiØyØð~ÆŁð~Æ…åfl VD“RX“ EŽKQ…“RX“ODX“ S8D“SuEL OŽ o ERRN KRZPDQ\&/)DVPXFKDV UHDG1QLVKHG16,7 &4 U$ERXW KRZ PDQ\ ERRNV KDYH \RX 1QLVKHG UHDGLQJ"V

nÆnØn„ß„ìàyßäyº nÆnØð~ÆŁð~Æfl VL]LQ]…\D ïtGDGZH VL]LQSuEL DUUDQJHWKLQJWR H[LVW1)8710/3/ DUUDQJH1QLVKHG16,7 U:KDW KDG WR EH DUUDQJHG KDV DOUHDG\ EHHQ DUUDQJHGV

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

oà~Øi‚ØŁysØäoßiØ„}Ø nßjŒ~ØjŒ~Øoàâð~ÆŁîn؇sØfl V8HL“NjQ WŽV8DX“\DQ VD8RX“ Q8RX“V8RSu S8\L“,L MHWW\ EXLOGVRWKDW FRQWUDFW VLJQ1QLVKHG EH1)87 U$ FRQWUDFW KDV EHHQ VLJQHG WR EXLOG D MHWW\V

zàâiåç‡àâ ‡à~Óæ~sß„ìmØæiÆŁ‚ŒßŁi ƒâæïisØzߣð~ÆŁîn؇sØfl W8RJŽ b>y ,HL“SDQS\LQÑDïLQ8uP\jJi \RXQQLW8jSu S8\L“,L WKDWDV VFLHQWLVWELJ3/6%- WUXVWNHHS1QLVKHG EH1)87 U*UHDW VFLHQWLVWV KDYH EHOLHYHG WKDW ZD\V

7KH FRPELQDWLRQN XQELUDOOV LQGLFDWHV WKDW DQ HYHQW KDV RFFXUUHG H[KDXV WLYHO\ 7KH TXDQWLI\LQJ DX[LOLDU\NRXQU OO H[KDXVWHGV PD\ UHIHU WR WKH REMHFW RU WKH VXEMHFW RI WKH HYHQW 7KH IRUPHU LV WKH GHIDXOW UHDGLQJ LQ WUDQVLWLYH H[ SUHVVLRQV WKH ODWWHU LQ LQWUDQVLWLYH H[SUHVVLRQV /LNHSuU1QLVKHGVNRX UDOO H[KDXVWHGV DV DQ DX[LOLDU\ LV QRW YRLFHG DQG PD\ EH VHSDUDWHG IURP WKH PDLQ YHUE E\ WKH VXERUGLQDWRUOyDQG WKH QHJDWRUP…

Š‡iØi…sØŁæiÆŁ…ßäyßç ä‚çiâ}Øð~Æiºfl “…,Ž“Ni OŽ o QuODGæb PpNRXQEL NZi OLIH6%- DOVR ELJFRPH&2175 IRUJHWDOO16,7 )$0 U, JRW ROGHU WRR VR , IRUJRW HYHU\WKLQJV

äqŁäyº…sØŁ yiØiâ}Øð~Æfl ]qGZH OŽ o WŽ“NRXQEL PDUNHW3/ DOVR JRXSDOO16,7 U7KH SULFHV KDYH JRQH XS DOVRV

PRVTXLWR 1(*DUULYH 1)87’(3

PRXQWDLQRQ UHJLRQ $663/LQ

Q8LQGZHL \DX“NRXQEL PRVTXLWR3/ DUULYHDOO16,7

U,Q PRXQWDLQRXV SODFHV ZKHUH WKHUH ZHUH QR PRVTXLWRHV LQ WKH EHJLQQLQJ WKHUH DUH QRZ PRVTXLWRHVV

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

IRUPHU LQSDVWIURP

FLW\ELJ $663/6%-

DOVR EURNHQGHFD\HG DOO16,7

EH(83+ 1)87

U2OG JUHDW FLWLHV DUH QRZ DOO UXLQHGV

7KH SUHYHUEDO DX[LOLDU\S\DQUUHWXUQV GHQRWHV D UHSHDWHG DFWLYLW\ RU HYHQW :LWK WUDQVLWLYH YHUEVS\DQ UHWXUQV LPSOLHV WKDW WKH DFWLYLW\ LV UHSHDWHG ZLWK WKH VDPH REMHFW DQG GRHV VRPHWKLQJ LQ UHWXUQ ,Q QHJDWHG H[SUHVVLRQV WKH QHJDWRUP… DSSHDUV EHIRUH WKH PDLQ YHUE LQ WKH SDWWHUQS\DQ P… 9 7KH UHSHW LWLYH SUHYHUEDO DX[LOLDU\ FDQ EH VHSDUDWHG IURP WKH PDLQ YHUE E\ D OLQNLQJ H[SUHVVLRQ OLNH WKH VHTXHQWLDOSu EuGæbUDIWHUZDUG DQG WKHQV

{Ænߊâ~ØyتŁyƒØfi Š„‚ØŁäißmØŁyƒØfi î~}ØyØ‚ƒØfl GL VD“RX“ S8D“S8GŽ “…\jQ NjXQGŽ S\DQ S8D“PŽ WKLV ERRN UHDGHYHU

1)87 YHU\ JRRG

1)87 UHWXUQ UHDG)87

U,VYH UHDG WKLV ERRN EHIRUH LWVV JUHDW VR , ZLOO UHDG LW DJDLQV

)HHOoàâmØ‚ìß î~}ØnߣjŒmØyƒØfl IHHOV8DLQKPD S\DQ Vj8LQGŽ )HHOVKRSDW UHWXUQ HDWZDQW1)87 U,VG OLNH WR HDW DW WKH )HHO UHVWDXUDQW DJDLQV

‡ªi nßî~}Ø‚~àŁfl ,XJi VD S\DQ P…SyE 6%- WH[W UHWXUQ 1(*VHQG1(* U+H GLGQVW ZULWH EDFNV

,Q WKH FRPELQDWLRQ RIS\D UUHWXUQV ZLWK D GLUHFWLRQDO YHUEV VXFK DVODUFRPHV DQG,Zj UJRV HLWKHUS\DQUUHWXUQV RU WKH GLUHFWLRQDO FDQ EH VHHQ DV PDLQ YHUE 7KH UHDGLQJ LQ HDFK FDVH GHSHQGV RQ WKH FRQWH[W DQG PD\ QRW DOZD\V EH FOHDU

‚}iØî}Øî~}Ø…ß‚ƒØfl P…QŽ“S8\DQ S\DQODPŽ WRPRUURZ UHWXUQFRPH)87 U,VOO FRPH EDFN WRPRUURZV

7KH SRVWYHUEDO DX[LOLDU\S\DQELE\DQELUDJDLQV DQG LWV QHJDWHG IRUPP… 9 S\DQE LQGLFDWHV WKDW DQ HYHQW RFFXUV DJDLQ W\SLFDOO\ ZLWK D FRQQRWDWLRQ RI VXUSULVH RU GLVPD\ E\ WKH VSHDNHU WKDW WKH HYHQW KDSSHQV WRR RIWHQ RU WRR HDUO\ RU DV DQ DGGLWLRQ RU FRQWUDVW WR VRPHWKLQJ HOVH VLPLODU WR UIXUWKHU PRUHV 7KH SDWWHUQV LQ /LWHUDU\ %XUPHVH FRUUHVSRQG WR WKH FROORTXLDO IRUPV ZLWK WKH UHOHYDQW PDUNHUV FKDQJHG

ä‚ßmØ„ßpßiäyßç ynØ‚ìyØ„‡ºßŁî~}Øð~Æfl PDXQ \D]DJiGæb W…KPD“ \i>ZjE\DQEL \RXQJHUEURWKHU <D]D6%-&2175 RQHPDUN JHWJRUHWXUQ16,7 U0DXQJ <D]D VFRUHG RQH SRLQW DJDLQV

{Æs…sØŁ ïiƒØäyº yŒ~ØŒ~Ø ä÷iïiî~}Øð~Æfl GL Ñi OŽ o QŽGZH W…S8\D“S8\D“ QZH8iE\DQEL WKLV QLJKW DOVR VWDU3/ WZLQNLQJO\ IDOO3/UHWXUQ16,7 U7KLV QLJKW WKH VWDUV IDOO WZLQNOLQJ DJDLQV

Š‚kü…ßniߣäyº …ßäî~ßä}î~}Øð~Æfl “iPLQJ…OD ]…JjGZH OD S\æoQHE\DQEL LQDXVSLFLRXV ODQJXDJH3/ FRPH VSHDNVWD\UHWXUQ16,7 U<RX FRPH WR VSHDN LQDXVSLFLRXV ZRUGV DJDLQ"V

1)87’(3 IRU DOVR URZ 1(*DUUDQJH

FDSDEOHUHWXUQ 1(*

U6LQFH ZH ZHUH QRW IUHH ZH DOVR FRXOGQVW TXHXH XSV >:H FRPSODLQHG EXW ZH FRXOGQVW WDNH DGYDQWDJH RI WKH VDOH R3HUHG ZKLFK UHTXLUHV TXHXLQJ IRU ZKLFK ZH GRQVW KDYH WLPH HLWKHU@

~âkæ}å‚ ˛ä…ŁiŒäyßç „}Øiâ}Ø}å‚yªî~}؁ªŁfl E…JDQQŽ b PjQG…Oq QiGæb \DQJRXQQŽ b P…WXE\DQEX %DJDQZLWK 0DQGDOD\ IDOO&2175 <DQJRQZLWK 1(*VDPH

UHWXUQ1(* U)XUWKHUPRUH LQ %DJDQ DQG 0DQGDOD\ WKH VLWXDWLRQ LV TXLWH GL3HUHQW IURP <DQJRQV

S\DQE 6%- XWWHUO\ TXDOL1FDWLRQ 1(*H[LVW

1)8710/ &2175

1(*EHVR UHWXUQ 1(*

U,WVV QRW WKDW KH GRHVQVW KDYH DQ\ TXDOL1FDWLRQV HLWKHU WKH SUREOHP LV HOVHZKHUHV

ä‚ßmØ†Þ†Þ iæ‚äißmØŁ ŠäïißmØŁ‚…ìî~}ØäjŒfl PDXQZDZD NDQ P…NjXQ “…QjXQ P…KOiE\DQ 8H 0DXQJ:D :D

IRUWXQH 1(* JRRG

PDWWHU 1(*SUHWW\UHWXUQ (83+

U0DXQJ :D :D JRW XQOXFN\ RQFH DJDLQV

,17(5 IRU GHVLUHVKRZ3/1)872%- 0 HDU1(* FOHDUUHWXUQ

(83+

U2QFH DJDLQ , GRQVW XQGHUVWDQG ZK\ WKH\ DUH GHPRQVWUDWLQJV

7KH SUHYHUEDO DX[LOLDU\W8D“UVWDFN SLOH XSV GHQRWHV D UHSHWLWLRQ RI DQ DFWLY LW\ EXW LQ FRQWUDVW WR SUHYHUEDOS\DQUU WXUQV WKH DFWLYLW\ LV GRQH ZLWK GL3HU HQW REMHFWV ,W FDQ EH IROORZHG E\ WKH VHTXHQWLDOJHQHUDO OLQNHU Su Eu

EHKLQG RQHWLPH SLOHXS UHDG 5(675

PHDQ 10/2%-

NQRZIROORZ ,32571)87

U2QO\ DIWHU UHDGLQJ LW DJDLQ RQFH PRUH GLG , XQGHUVWDQG WKH PHDQLQJV

ð~Æ… « „iØä} âæŁjŒà}ØŁz~ØjŒà}ØŁ…àâiØ~ÞyƒØfl “HS\LOi N8XQQ…\Ž“Qp \zXQ8qLQ W8D“ $SULOPRRQ VHYHQGD\GD\ R4FLDODSSRLQWPHQW SLOHXS

Q8qLQODL“SDGŽ PDNHDSSRLQWPHQWIROORZ,032571)87

U7KH\ LVVXHG D QHZ FRXUW GDWH RQ $SULO RQFH DJDLQV

YHUVLRQŠ‡nØz~ØzâyØzߣ~ÞyƒØfl EDïLQ “…,L“ W8D“ W8RX“W8jEDGŽ YHUVLRQ QHZ SLOHXS EULQJRXWNHHS,032571)87 U, KDYH GHYHORSHG D QHZ YHUVLRQV , GLG WKH SUHYLRXV RQH DOVR

ä}ßiØz~Ø~âæ §⁄ äiŒßØiàâ z~Øð~ÆŁ~àâ…àâiØ~ÞyƒØfl QDX“W8D“ SRXQ ,zXQ]Ž8æJR W8D“Su SyODL“SDGŽ EHKLQGSLOHXS LPDJH WKULW\EH\RQG2%- SLOHXS

6(4 VHQGIROORZ ,032571)87

U, DP VHQGLQJ PRUH SLFWXUHVV , VHQW VRPH EHIRUH

„ºß‡ßŁäyºiànˆiàâ ä}ßiØ‚ì z~Øð~ÆŁäoºŁäºŁ‚ƒØfl \ZD>jGZH NHL“ViJR QDX“KPi W8D“Su V8ZqQZqPŽ YLOODJHU3/ D3DLU2%- EHKLQG5(675 SLOHXS6(4 GLVFXVV)87 U:H ZLOO FRQWLQXH WKH GLVFXVVLRQ DERXW WKH YLOODJHUV ODWHUV

â}ØŁäqŁäyºz~Øð~ÆŁä…łßçŠâæŁ‚ƒØfl S8zXQ]qGZH W8D“Su ïæb“zXQPŽ SKRQHPDUNHW3/ SLOHXS6(4 UHGXFHIXUWKHU)87 U3KRQH SULFHV ZLOO EH UHGXFHG IXUWKHUV

,Q /LWHUDU\ %XUPHVH WKH H[WHQGHG IRUPVW8D“PDQ RQFH DJDLQV DQGW8D“V8tQ USLOH XSVWDFNV DUH RIWHQ XVHG

„}Øiâ}ØyºmØ oà~Øi‚ØŁæiÆŁ “ jâ z~Ø‚æyàâŁjŒåysØäoßiØ‚sØfl \DQJRXQGZLQ V8HL“NjQ8u Q8DX“N8~ W8D“PDQ WzQ8Ž bWŽV8DX“P\L <DQJRQLQ MHWW\ELJ VL[&/) DJDLQ H[SDQGEXLOG)87 U7KHUH ZLOO EH VL[ PRUH MHWWLHV WR EH EXLOW LQ <DQJRQV

ißiºƒØäoŁiàâ {âyàƒŠæià‚Øäî‚ßiØ z~Ø‚æzàâŁä~Ł‡ºßŁ‚sØfl NDNZŽV8qJR G~Wt\i “…QHLQP\DX“ W8D“PDQ W8zSq>ZjP\L SURWHFWGUXJ 2%-

VHFRQG WLPH25’ DJDLQ EHDWJLYHJR )87

U7KHUH ZLOO EH D VHFRQG URXQG RI YDFFLQDWLRQV

Š…â~ØŠßŁ…łmØŠßŁ‡…àâ z~Ø–ymØä~Ł~Þ‚sØfl “…ORX“ “jKO\LQ “j>…OR W8D“\Zp WLQSqEDP\L ZRUN IUHHLI IUHHDV SLOHXS6(4 SXWRQJLYH,03257)87 U:H ZLOO SRVW PRUH LQIRUPDWLRQ RQ WKH ,QWHUQHW DV RXU IUHH WLPH DOORZVV

nßä~oâ„ìmØŠ‚ŒàŁ‡‚ÆŁ ƒ ŽŁiàâ nßä„Ło„ß‚‚ŒßŁi z~ØomØçkâxØî~ ïi‡fl VDEHV8~ïLQ “…P\z>…Pu KQ…“JR OLWHUDWXUHUHZDUGPDVWHU ZRPDQ WZR&/)2%-

U:RPHQ ZULWHUV KRQRUHG DOVR WKH WZR IHPDOH ODXUHDWHV RI OLWHUDU\ DZDUGVV

$OWHUQDWLQJ UHSHDWHG HYHQWV DUH H[SUHVVHG E\ WKH FRQVWUXFWLRQ 9ODL“9 ODL“ ZKHUH 9 DQG 9 H[SUHVV UHODWHG RU RSSRVLWH QRWLRQV 7KLV SDWWHUQ IXQFWLRQV DV D QRQ1QLWH SUHGLFDWH RU DGYHUELDO H[SUHVVLRQ RIWHQ FRPELQHG ZLWK WKH SRVWSRVLWLRQDO PDUNHU QŽ bUZLWKV DQG GRHV QRW RFFXU ZLWK WKH VWDWXV PDUNHUV ,W FDQ EH FRPELQHG ZLWK WKH FRSXODS8\L“ UEHV WR PDNH WKH FODXVH 1QLWH DQG DGG DVSHFWXDO RU WHPSRUDO PDUNHUV

ƒØ…àâînØä}…å †mØ…àâiØzºiØ…àâiØ}åfl EŽOR S8\L“QH OŽ o ZLQODL“ W8ZŽ“ODL“QŽ b KRZ EHVWD\ &4 HQWHUIROORZ H[LWIROORZZLWK U:KDW DUH \RX GRLQJ FRPLQJ DQG JRLQJ RXW DOO WKH WLPH"V

ˆàâ‚ìßß‚ÆŁ…傇à jxjxä~í…àâiØä~ŒßiØ…àâiØînØä}yßfl KRKPD ED Pu OŽ o P…,t N8…QiN8…Qi WKHUH ZKDW 1UH &4 1(*NQRZ PRPHQWPRPHQW

SæODL“ S\DX“ODL“ S8\L“QHGD DSSHDUIROORZ GLVDSSHDUIROORZ EHVWD\1)8710/

U:KDW OLJKW FRXOG WKDW EH , ZRQGHU LW NHHSV DSSHDULQJ DQG GLVDSSHDULQJV

$ FRQWLQXHG RU UHVXPHG HYHQW LV GHVFULEHG E\ WKH SUHYHUEDO DX[LOLDU\V8Ž“ UFRQQHFW DGMRLQ FRQWLQXHV 7KH HYHQW PD\ EH LQWHUUXSWHG DQG WKHQ UHVXPHG RU XQLQWHUUXSWHG DQG FRQWLQXLQJ ,Q QHJDWLRQ WKH QHJDWRUP… DSSHDUV E IRUH WKH PDLQ YHUE LQ WKH SDWWHUQV8Ž“ P… 9 UQRW FRQWLQXH WR 9V 7KH FRQWLQXRXV SUHYHUEDO DX[LOLDU\ LV IUHTXHQWO\ VHSDUDWHG IURP WKH PDLQ YHUE E\ D OLQNLQJ H[SUHVVLRQ OLNH WKH VHTXHQWLDOSu Eu Gæb UDIWHUZDUG DQG WKHQV

{Æ‚ìߊ…â~ØoiØ…â~Ø…àâiØ‚ƒØfl GLKPD “…ORX“ V8Ž“ ORX“ODL“PŽ WKLVDW ZRUN FRQQHFW GRIROORZ)87 U,VOO MXVW JR RQ ZRUNLQJ KHUHV

…ß‚ƒØç ƒ „iØŠzà oiØð~ÆŁ‚àâŁæiÆŁàâmØyƒØfl ODPŽ b KQ…\Ž“ “…W8t V8Ž“Su Pz QuQDLQGŽ FRPH )87’(3

WZRGD\ XQWLO FRQQHFW6(4 VN\ ELJFDSDEOH 1)87

U7KLV KHDY\ UDLQ FDQ FRQWLQXH XS WR WZR PRUH GD\VV

iŒ‚iäyßç oiØð~ÆŁæiàŁnߣŽŁ‚ìß~Þfl Q…PiJiGæb V8Ž“Su Qz]j“zXQKPD ED )6%-&2175 FRQQHFW6(4 PDNHH3RUWIXUWKHU

)8710/ ,03257

U$V IRU PH ,VP GH1QLWHO\ JRLQJ WR NHHS ZRUNLQJ KDUGV

Š‚ìߣäyºiàâ oiØð~ÆŁ ‚iŒŁ…º}؇mØ灪Łfl “…KPjGZHJR V8Ž“Su P…QOXQ>tQE 10/ZURQJ3/2%- FRQQHFW6(4 1(*FRPPLWSURSHU1(* U<RX VKRXOG QRW FRQWLQXH FRPPLWWLQJ HUURUVV

,Q /LWHUDU\ %XUPHVH WKH SDWWHUQ LV WKH VDPH DV LQ FROORTXLDO ODQJXDJH RU H[WHQGHG WRV8Ž“OŽ“ \Zp UFRQWLQXHV IUHTXHQWO\ FRPELQHG ZLWK WKH SDWWHUQ O\Ž“ ït>L DGGHG

P\L <DQJRQFLW\ZLWKLQ ZD\3/LQ DGKHUH

EORFN3/ FRQQHFW SXWGRZQ

JR)87 U7KH\ ZLOO FRQWLQXH SODFLQJ FRQFUHWH EORFNV WR VHSDUDWH EXV ODQHV IURP WKH ODQHV IRU WKH JHQHUDO YHKLFOHV LQ <DQJRQV

WZR FRXQWU\

GLSORPDW UHODWLRQVKLS 2%-

FRQWLQXH PDLQWDLQJR )87

U:H ZLOO NHHS PDLQWDLQLQJ WKH GLSORPDWLF UHODWLRQVKLS EHWZHHQ WKH WZR FRXQWULHVV

FRQWLQXH IDOOJRGRZQ 68%

H[LVW 1)87

U7KH YDOXH RI 0\DQPDU .\DW NHHSV JRLQJ GRZQV

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

7KH SRVWYHUEDO DX[LOLDU\ODL“ V GHULYHG IURP WKH OH[LFDO YHUEODL“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“ 2Q WKH RWKHU KDQGODL“FDQ EH XVHG WR H[SUHVV DVWRQLVKPHQW HVSHFLDOO\ LQ QRPLQDOL]HG FODXVHV RI WKH IRUP 9ODL“WDUUHDOO\ 9V

,Q LPSHUDWLYH H[SUHVVLRQVODL“UH GHUV WKH FRPPDQG PRUH XUJHQW VXJJHVWLQJ WKDW QR FRQWUDGLFWLRQ LV DFFHSWHG

7KH JORVV UIROORZV XVHG KHUH WR WUDQVODWHODL“LQ DOO JU PPDWLFDO IXQFWLRQV LV DW EHVW DQ DSSUR[LPDWLRQ 7KH H[DFW YDOXH RI WKH DX[LOLDU\ LV QRW DOZD\V REYL RXV DQG RIWHQ LW FDQQRW EH H[SUHVVHG LQ (QJOLVK ,Q QHJDWHG YHUE SKUDVHV ZLWK ODL“ WKH QHJDWRUP… DSSHDUV EHIRUH WKH PDLQ YHUE IURP ZKLFKODL“LV QHYHU VHSDUDWHG /LWHUDU\ %XUPHVH XVHVODL“UIROORZV LQ WKH VDPH IXQFWLRQV ZLWK WKH UHOHYDQW JUDPPDWLFDO PRUSKHPHV FKDQJHG WR WKH OLWHUDU\ IRUPV

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

‡ª iߣî~mØ…àâiØyƒØfl ,X Nj S\LQODL“WŽ FDU SUHSDUHIROORZ1)87 U+H UHSDLUHG WKH FDUV

†ƒØjåçyåç‚â}Øäyº ‡ªnߣ…àâiØð~Æfl ZŽJŽ bGŽ b PyXQGZH ,X VjODL“SL EX\’,63/1)87’(3 VQDFN3/ HDWIROORZ16,7 U+H DWH XS WKH VQDFNV ZH ERXJKWV

‡yà„äyßçâ}ØŁoiØ…àâiØfl >…Gt \iGæb S8zXQ V8Ž“ODL“ DZDUHQHVV JHW&2175 SKRQH FRQQHFWIROORZ U,I \RX PLVV PH MXVW JLYH PH D FDOOV

{Æä}~å ‡yàä~ŁjŒiØzâyØ…àâiØyƒØfl GL Qp EŽ o >…GtSq8Ž“ W8RX“ODL“WŽ WKLV GD\ (;&/ ZDUQ10/ EULQJRXWIROORZ1)87 U-XVW WRGD\ D ZDUQLQJ VWDWHPHQW ZDV LVVXHGV

iŒä}ßØi Š…ƒØyåçyåç‚ìß ä}„߃ªŠà~Ø…àâiØyƒØfl Q…QæJi “…OŽWŽ bGŽ bKPD QH\D \X “HL“ODL“WŽ 06%- PLGGOHVWUDLJKWVWUDLJKWDW SODFH WDNH VOHHSIROORZ

1)87 U, WRRN WKH FHQWHU SODFH LQ WKH KDOO DQG VOHSWV

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

%ULWDLQJRYHUQPHQW6%- ODZHQWHU SHUPLVVLRQ GR10/

SXWGRZQ RWH IROORZ1)87

U7KH %ULWLVK JRYHUQPHQW LVVXHG DQ R4FLDO DXWKRUL]DWLRQV

o„ßäißmØŁˆâ‡à…łmØ y~sØçjæ…àâiØ‚sØfl V8…\DJjXQ K~ ,tKO\LQ G…EŽ b N8DQODL“P\L WHDFKHUJRRG 5(3 NQRZLI SXSLO UHFHLYHIROORZ)87 U,I , NQRZ WKDW KH LV D JRRG WHDFKHU , ZLOO PDNH P\VHOI KLV GLVFLSOHV

nߊâ~Ø‚ª„mØŁiàâ nߊâ~ØŠ‡nØ…å…ìƒØ„}ØŠyºiØ äjy˛ ‡à‚ØŁosØŁ…àâiØ‚sØîn؇sØfl VD“RX“PX\uQJR VD“RX“ “…,L“ OŽ oKOŽ\DQ “…WZŽ“ N8L“Wi ERRNRULJLQDO2%- ERRN QHZ H[FKDQJH

VRWKDW IRU WHPSRUDULO\

,qLQV8uODL“P\L S8\L“,L SXWDZD\IROORZ)87 EH1)87

U,Q RUGHU WR LVVXH D QHZ SDVVSRUW WKH RULJLQDO ZLOO EH FRQ1VFDWHG WHPSRUDULO\V

)DFHERRNiàâ~àyØð~ÆŁHPDLOºmØçïisØç…àâi؇sØfl S8pERX“NR SHL“Su “uPq S8ZtQQtODL“,L )DFHERRN2%- FORVH6(4 HPDLO RSHQORRNIROORZ1)87 U, FORVHG )DFHERRN DQG RSHQHG P\ HPDLOV

7KH VDPH PDUNHU FDQ EH DWWDFKHG WR YHUEV H[SUHVVLQJ UHODWHG RU RSSRVHG QRWLRQV LQ WKH SDWWHUQ 9ODL“9 ODL“WR H[SUHVV DOWHUQDWLQJ UHSHDWHG HYHQWV VHH

7KH OH[LFDO YHUEW8jUNHHSV LV XVHG DV D SRVWYHUEDO DX[LOLDU\ LQGLFDWLQJ WKDW DQ HYHQW KDV KDSSHQHG DQG LV VWLOO UHOHYDQW RU WKDW DQ DFWLYLW\ LV FDUULHG RXW DKHDG RI WLPH RU LQ RUGHU WR DFKLHYH D UHPDLQLQJ UHVXOW 8QOLNH WKH DX[LOLDU\ ODL“GHVFULEHG LQ WKH SUHFHGLQJ VHFWLRQW8jUN HSV KDV D FRQQRWDWLRQ WKDW WKH UHVXOW RI WKH HYHQW LV VWLOO UHOHYDQW EXW PD\ FKDQJH DW VRPH SRLQW ,W LV WKXV QRW DSSOLHG WR LUUHYHUVLEOH HYHQWV DQG DQ HYHQW RU DFWLYLW\ PRGL1HG E\W8j UNHHSV LQYROYHV PRUH FRQVLGHUDWLRQ DQG SODQQLQJ WKDQ RQH PRGL1HG E\ODL“ ,Q QHJDWLRQ WKH QHJDWRUP… QRUPDOO\ RFFXUV EHWZHHQ WKH PDLQ YHUE DQG WKH DX[LOLDU\ LQ WKH SDWWHUQ 9P…W8j WKRXJK WKHUH LV VRPH YDULDWLRQ DQG WKH SDWWHUQP… 9 W8jLV DOVR IRXQG

ßäyºnߣzߣ…åfl EDGZH VjW8j OŽ o ZKDW3/ HDWNHHS &4 U:KDW KDYH \RX HDWHQ"V

&RPSDUH WKH GL3HUHQFH EHWZHHQODL“UMXVWV DQGW8jUNHHSV LQ WKH IROORZLQJ VHQWHQFHV

‡ªiàâ iŒ~Ø '⁄⁄⁄ ä~Ł…àâiØyƒØfl ,~JR QD“ ÔjGDXQ SqODL“WŽ ’(32%- .\DW 1YHWKRXVDQG JLYHIROORZ1)87 U, MXVW JDYH KLP .\DW IRU JRRG OHWVV QRW WDON DERXW LW DQ\PRUHV

‡ªiàâ iŒ~Ø '⁄⁄⁄ ä~ŁzߣyƒØfl ,~JR QD“ ÔjGDXQ SqW8jGŽ ’(32%- .\DW 1YHWKRXVDQG JLYHNHHS1)87 U, JDYH KLP .\DW KH VXSSRVHGO\ KDV WKH PRQH\ QRZV

7KH IROORZLQJ VHQWHQFHV DUH LQ /LWHUDU\ %XUPHVH

zàâpßyØiߣiàâ …ªmƒØ‡â~ØäoßmØŠ‡nØ‚ŒßŁìmØç àâiØiªŁzߣ‡sØfl W8R ]D“NjJR OXÔŽ,…\RX“V8DXQ “…,L“P\jKQtQ \DL“NW8j>L WKDW 1OP2%- \RXQJSHRSOH

DFWRU QHZ3/ZLWK VKRRWNHHS

1)87 U7KLV 1OP KDV EHHQ PDGH ZLWK QHZ \RXQJ DFWRUVV

{âi¿ä„ßiØàâmØäîj„ìà‡s؈â i‚ÖßçxØi j}Ø‚ì}ØŁzߣ‡sØfl GRX“N8i \DX“

W8j>L VX3HULQJ DUULYH

OLNHOLKRRG H[LVW1)87 5(3 ZRUOG’(3

EDQN6%- HVWLPDWH NHHS1)87

U7KH :RUOG %DQN KDV SUHGLFWHG WKDW WKHUH FRXOG EH VRPH ULVNVV

P\L WH[WWHVWSODFH3/LQ VHFXULW\2%- WZR

PXOWLSOH LQFUHDVHSXWGRZQ NHHS)87

U6HFXULW\ ZLOO EH GRXEOHG LQ H[DP FHQWHUVV

P\L ZLQWHUUHIXJH ELUG$663/

ZD\ 1(* ZURQJIRU

1HZ<RUN FLW\ELJ

1UH H[WLQJXLVK JLYHNHHS)87

U6R WKDW PLJUDWLQJ ELUGV GRQVW JHW ORVW LQ WKHLU SDWK 1HZ <RUN &LW\ ZLOO GLP WKH OLJKWVV

/LNH WKH OH[LFDO YHUE“j UEH IUHHV WKH DX[LOLDU\“j UKDYH WLPH WR 9V QRUPDOO\ RFFXUV ZLWK WKH QRQIXWXUH VWDWXV PDUNHU W\SLFDOO\ LQ QHJDWHG FRQWH[W ,W GH VFULEHV WKH SRVVLELOLW\ WR GR VRPHWKLQJ GXH WR WKH DEVHQFH RI WLPH UHVWULFWLRQV FDUU\LQJ D QRWLRQ RI UQRW EH WRR SUHRFFXSLHG ZLWK VRPHWKLQJ HOVHV

Šî~mØijmØŁiàâ kâ‚nàâiØŠßŁªŁfl “…S\LQJi ï~JuQJR J…\~P…VDL““jE RXWVLGHIURP YLHZ2%- LPSRUWDQFH1(*SODQWIUHH1(* U, ZDV MXVW DQ[LRXV WR JHW WR WKH GHVWLQDWLRQ WKDW , FRXOGQVW HYHQ ERWKHU WR HQMR\ WKH VFHQHU\ RXWVLGHV

†‚ØŁnß„ìßä}„…àâ nß‚yØŠßŁªŁfl ZQ]D ïDQH\iOy VD P…S8D““jE EHOO\IRRG VHHNVWD\JHW68% WH[W 1(*UHDGIUHH1(* U, KDYH WR HDUQ P\ OLYLQJ DQG , FRXOGQVW HYHQ D3RUG WR UHDG IRU SOHDVXUHV

nàyØsnØ…àâ yîjߣßiàâ‚ì nàyØ‚†mØnߣŠßŁªŁfl VHL“ÑL“Oy W…Q8j EDJRKPi VHL“P…ZLQ]j“jE XQKDSS\68% RWKHU ZKDW2%-

5(675 KHDUW1(*LQWHUHVWHGIUHH1(*

U, DP VR XSVHW WKDW , FRXOGQVW HYHQ WDNH LQWHUHVW LQ DQ\WKLQJ HOVHV

$ JUDPPDWLFDO H[WHQVLRQ RI XVH RI WKH OH[LFDO YHUEN8Ž oUKDUG VROLGV DV IRXQG LQ WKH FRPPRQ FRPSRXQG\HJŽ o ULFHV OLWHUDOO\ UVROLG ZDWHUV WKH SRVWYHUEDO DX[LOLDU\N8Ž o JŽ o GHQRWHV DQ HYHQW WKDW RFFXUV RQO\ UDUHO\ ,W QRUPDOO\ RQO\ RFFXUV ZLWK WKH QRQIXWXUH VWDWXV PDUNHU DQG LQ D4UPDWLYH FRQWH[WV

)HHOoàâmØ‚ìßnߣjåyƒØfl IHHOV8DLQKPD VjJŽ oGŽ )HHOVKRSDW HDWUDUHO\1)87 U:H UDUHO\ HDW DW WKH )HHO UHVWDXUDQWV

{ÆoàâmØ‚ìß â}ØŁi{Øiâ}ØjåyƒØfl GL V8DLQKPD S8zXQND“ NRXQJŽ oGŽ WKLV VKRSDW SKRQHFDUG DOOUDUHO\1)87 U7KLV VKRS UDUHO\ UXQV RXW RI SKRQH FDUGVV

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

$ QXPEHU RI DX[LOLDULHV DUH LQFOXGHG LQ WKLV FDWHJRU\ WKDW H[SUHVV QRWLRQV EH \RQG WKH WUDGLWLRQDO VFRSH RI PRGDOLW\ 7KH\ QHYHUWKHOHVV VKDUH VHPDQWLF IHD WXUHV ZLWK RWKHU PRGDOV LQ WHUPV RI VSHDNHU RU VXEMHFWRULHQWHGQHVV

%XUPHVH GLVWLQJXLVKHV WKUHH W\SHV RI DELOLW\ RU WKH SRVVLELOLW\ RI WKH VXEMHFW WR GR VRPHWKLQJ H[SUHVVHG E\ GL3HUHQW SRVWYHUEDO DX[LOLDULHV

\i¶JHW• 7KH OH[LFDO YHUE\i JHWV RFFXUV LQ WKH SDWWHUQ 9Oy \i WR H[SUHVV D JHQHUDO SRV VLELOLW\ VLPLODU WR (QJOLVK UFDQV RU UPD\V 7KLV SDWWHUQ LQGLFDWHV WKH DEVHQFH RI REVWDFOHV WR GR VRPHWKLQJ 7KH VXERUGLQDWRUOyLV VRPHWLPHV GURSSHG LQ FDVXDO VSHHFK DQG LW LV UHJXODUO\ RPLWWHG ZLWK YHUEV RI FRJQLWLRQ DQG SHUFHSWLRQ VXFK DVQj UKHDUV DQGP\LQ RUWZpUVHHV

‚ïiߣ„ªŁfl P…Qj\iE U, FDQVW KHDUV äyº„…ߣfl WZp\i Oj U&DQ \RX VHH"V î‚mØ„ð~Æfl P\LQ\iEL U1RZ , FDQ VHHV

7KH FRQVWUXFWLRQ 9Oy \i IRUPDOO\ FRQVLVWV RI D VXERUGLQDWH FODXVH 9OyDQG WKH PDWUL[ YHUE\i JHWV 7KH ODWWHU LV DQ LQGHSHQGHQW IRUP DQG FDQ RFFXU DORQH

‚ìyØ~âæymØ~Þ‚ì ä…ƒßØnÆŁ…àâ„yƒØfl KPD“SRXQWLQ SDKPi OH\LQ VuOy \iGŽ ,’FDUG LQFOXGHG5(675 DLUSODQH ULGH68% JHW1)87 U2QO\ LI \RX EULQJ \RXU ,’ FDUG FDQ \RX WDNH WKH SODQHV

{Æ‚ìßzàâmØ…à℅ߣfl GLKPD W8DLQOy \i Oj KHUH VLW68% JHW 34 U0D\ , VLW KHUH"V

$V WKH SRVVLELOLW\DELOLW\ FRQVWUXFWLRQ ZLWK 9OyLV IRUPDOO\ ELFODXVDO ERWK WKH VXERUGLQDWH DQG PDWUL[ YHUEV FDQ EH QHJDWHG LQGHSHQGHQWO\ 7KH QHJDWHG IRUP RI WKH PDWUL[ LV UHJXODUO\ 9Oy P…\iE UFDQQRW PD\ QRWV VRPHWLPHV P… 9 \iE WKH VXERUGLQDWH SUHGLFDWH KDV WKH UHJXODU IRUPP… 9 Oy ’HSHQG LQJ RQ WKH PHDQLQJ RI WKH H[SUHVVLRQ HLWKHU RI WKH YHUEV RU ERWK FDQ EH QHJDWHG

‚}iØî}Ø ä‚ßØ…ð‚àm؇ºßŁ…àâ‚„ªŁfi iߣ…iØ‚ìyØ‚„…àâfl P…QŽ“S8\DQ PæO…P\DLQ ,ZjOy P…\iE Nj WRPRUURZ 0DZODP\DLQJ JR68% 1(*JHW1(* FDU

U:H FDQVW JR WR 0DZODP\DLQJ WRPRUURZ ZH GLGQVW JHW DQ\ EXV WLFNHWVV

‚…ßjŒmØ„mØ ‚…ß…àâ…sØŁ„~ÞyƒØfl P…OD8LQ\LQ P…ODOy OŽ o \iEDGŽ 1(*FRPHZDQWLI 1(*FRPH68% DOVR JHW,032571)87 U<RX GRQVW KDYH WR FRPH LI \RX GRQVW ZDQW WRV

äiŒßmØŁ‚‡ºßŁ…àâ‚„ªŁfl QjXQ P…,ZjOy P…\iE VFKRRO 1(*JR68% 1(*JHW1(* U:H KDYH WR JR WR VFKRRO ZH KDYH DQ H[DP WRGD\V OLWHUDOO\ U:H FDQQRW QRW JR WR VFKRROV

taʔ daʔ ¶DEOH• 7KH DX[LOLDU\WD“ GD“UEH DEOH NQRZ KRZV GHQRWHV DQ LQKHUHQW DFTXLUHG RU OHDUQHG VNLOO RI WKH VXEMHFW 7KH QHJDWLRQ SDWWHUQ LV FRPPRQO\P… 9 D“ GD“ UHJLRQDOO\ DOVR 9P…WD“

o„ß‚î~m؇nØ…àâäî~ßyyØyßä~Þçfl V8…\DPi S\LQ,L“OR S\æoGD“WD Eæb WHDFKHU) )UHQFKDV VSHDNDEOH1)8710/ ,16,67 U2I FRXUVH WKH WHDFKHU FDQ VSHDN )UHQFKV

ƒØ…àâ…â~Ø„‚ìß…å iı}ØäyßØ‚äî~ßyyØäyß灪Łfl EŽOR ORX“\iKPD OŽ o Q…Qæ P…S\æoGD“WæbS8 KRZ GRJHW)8710/ &4 0 1(*VSHDNDEOH&21751(* U, GRQVW NQRZ ZKDW WR VD\ KRZ ZH KDYH WR GR WKLVV

nain ¶ZLQ FDSDEOH• 7KH OH[LFDO YHUEQDLQUZLQ RYHUFRPH EH FDSDEOHV H[SUHVVHV D PHQWDO RU SK\V LFDO FDSDELOLW\ WR GR VRPHWKLQJ 8QOLNHWD“ GD“ LW GR V QRW UHIHU WR D OHDUQHG VNLOO EXW UDWKHU WR D PRPHQWDU\ DELOLW\ WR GR VRPHWKLQJ 7KH QHJDWLRQ SDW WHUQ LV FRPPRQO\P… 9 QDLQ UHJLRQDOO\ DOVR 9P…QDLQ

68% ZKDW 5(675

1(*HDWFDSDEOH &21751(*

U, KDYH HDWHQ D ORW RI ULFH VR , FDQVW HDW DQ\WKLQJ DQ\ PRUHV

mÞi ŠàâmØâ}ØŁ†ƒØàâmØyƒØfi {Þä~‚ƒØç ‚†ƒØjŒm؁ªŁfl ÔDJi “DLQS8zXQ ZŽQDLQGŽ GDEHPŽ b P…ZŽ8LQE )$06%- L3KRQH EX\FDSDEOH

1)87 EXW 1(*EX\ZDQW1(*

U, FDQ D3RUG DQ L3KRQH EXW , GRQVW ZDQW WR EX\ RQHV

7KH VDPH DX[LOLDU\QDLQUFDSDEOHV LV DOVR XVHG WR GHQRWH D JHQHUDO RU K\SR WKHWLFDO SRVVLELOLW\ RU DELOLW\ RI WKH VXEMHFW WR GR VRPHWKLQJ ,W RIWHQ LQYROYHV D FRQQRWDWLRQ RI UEHLQJ HQWLWOHG WR GR VRPHWKLQJV ,Q WKLV XVHQDLQUFDSDEOHV RYHUODSV ZLWK 9Oy \iGŽ UFDQ PD\V

Š‡iØ ¥‹ oàâ iߣä‚ßmØŁàâmØð~Æfl “…,Ž“ V8Ž bïL“ V8R Nj PjXQQDLQEL OLIH HLJKWHHQ VD\ FDU GULYHFDSDEOH16,7 U$W WKH DJH RI HLJKWHHQ RQH PD\ GULYH D FDUV

7KH GL3HUHQFH EHWZHHQ WKH WKUHH DELOLW\ H[SUHVVLRQV LV LOOXVWUDWHG E\ FRQ WUDVWLQJ XWWHUDQFHV OLNH WKH IROORZLQJ

7XEXIQIRX )\TPEREXMSR

iı}ØäyßØäî~ß…àâ‚„ªŁfl Q…Qæ S\æoOy P…\iE 0 VSHDN68% 1(*JHW1(* U, FDQVW VSHDNV U, FDQVW WHOO \RXV,VP QRW DOORZHG WR , GRQVW

KDYH WKH RSSRUWXQLW\

iı}ØäyßØ‚äî~ßyy؁ªŁfl Q…Qæ P…S\æoGD“S8 0 1(*VSHDNDEOH1(* U, FDQVW VSHDNV U, GRQVW NQRZ ZKDW WR VD\V

, GRQVW NQRZ WKH ODQJXDJH , KDYH QR LGHD

iı}ØäyßØ‚äî~ßàâm؁ªŁfl Q…Qæ P…S\æoQDLQE 0 1(*VSHDNFDSDEOH1(* U, FDQVW VSHDNV ,VP WRR H[KDXVWHG WRR

H[FLWHG HWF

,Q /LWHUDU\ %XUPHVH WKH VHTXHQWLDO PDUNHU RU JHQHUDO YHUE OLQNHU\Zp LV DGGHG WR WKH PDLQ YHUE ZLWK\i VJH V 1R FRQQHFWRU LV SUHVHQW ZLWKWD“ GD“ VDEOHV DQGQDLQVFDSDEOHV

yâyØ}ƒØn~ØyºmØ î‚}Ø‚ß *60&’0$ â}ØŁ‚ŒßŁoi؇ºƒØ–‚„fl W…\RX“ QŽ]D“WZLQ

&KLQD ERUGHULQ

0\DQPDU *60&’0$ SKRQH3/

FRQWDFW6(4 1(*JHW

U2Q WKH &KLQHVH ERUGHU %XUPHVH *60&’0$ SKRQHV FDQQRW JHW FRQQHFWLRQV

î‚}Ø‚ßomØ‚i ~}ØŁjŒÆ…sØŁoºåyy؇sØfl P\DQPD V8LQPiJi E…8L OŽ o V8ZŽ oGD“,L 0\DQPDU HOHSKDQW)6%- SDLQWLQJ DOVR SXOODEOH1)87 U$ %XUPHVH IHPDOH HOHSKDQW FDQ DOVR SDLQWV

ä‚ßØäyßØiߣ~ŒiØ…łmØ î~mØyy؇sØfl PæWæNj S\Ž“KO\LQ S\LQGD“,L PRWRUFDU EURNHQLI UHSDLUDEOH1)87 U+H NQRZV KRZ WR UHSDLU D FDU LI LW EUHDNV GRZQV

Šä‡Łnày؇à…àâ~Þi äŠßiØ~Þ…à~Øn߇àâ oi؇ºƒØàâmØ~Þ‡sØfl “…,q]HL“ ,tOREDJi “DX“SD OHL“VD>y V8Ž“,ZŽQDLQED>L GHWDLO NQRZ

UHTXLUHLI EHORZ LQFOXGHG

DGGUHVVWR FRQWDFWFDSDEOH ,032571)87

U,I \RX ZDQW WR NQRZ IXUWKHU GHWDLOV \RX FDQ FRQWDFW WKH DGGUHVV EHORZV

ŠmØyß}iØ‚ìyomçØ ä…łßiØ…ôßä~Ł~àâàâmØ~Þ‡sØfl “LQWDQŽ“KPi W…V8tQ ïDX“KOZD SqSyQDLQED>L LQWHUQHWIURP RQHVWDFN DSSO\ JLYHVHQGFDSDEOH,03257

1)87 U<RX FDQ VHQG WKH DSSOLFDWLRQ RQ WKH LQWHUQHWV

‡‚àâmØŁînØ„~؇sØ ä‚ç-‚„fl ,…PjLQ S8\L“\D“,L Pp\Zp P…\i KLVWRU\ HYHQW6%- IRUJHW6(4 1(*JHW U+LVWRULFDO HYHQWV FDQQRW EH IRUJRWWHQV

3RVVLELOLW\ H[SUHVVLRQV LQGLFDWH WKH VWDWH RI NQRZOHGJH RI WKH VSHDNHU UDWKHU WKDQ UHIHUULQJ WR WKH VWDWH RI WKH VXEMHFW $V WKH GHIDXOW LV IRU WKH VSHDNHU WR SUHVHQW D SURSRVLWLRQ DV JLYHQ RU FHUWDLQ WKH XQFHUWDLQW\ DQG VSHFXODWLRQ RQ KLV SDUW FRQVWLWXWHV WKH PDUNHG H[SUHVVLRQ $ QXPEHU RI FRQVWUXFWLRQV DUH DYDLODEOH LQ %XUPHVH WR H[SUHVV XQFHUWDLQW\ FDUU\LQJ GL3HUHQW GHJUHHV RI VSHFXODWLRQ DQG RWKHU FRQQRWDWLRQV

nain ¶ZLQ FDSDEOH• 7KH DX[LOLDU\QDLQUFDSDEOHV LV DOVR XVHG WR H[SUHVV D SRVVLELOLW\ WKDW VRPH WKLQJ LV KDSSHQLQJ RU KDV KDSSHQHG 7KLV LV IRXQG LQ WKH FRPPRQ H[SUHVVLRQ S8\L“QDLQGŽULWVV SRVVLEOHV DQG LWV QHJDWHG FRXQWHUSDUWP…S8\L“QDLQE LWVV LPSRVVLEOHV

8iGŽ FDU SULFH

FHUWDLQO\ UHWXUQ JRXSFRPH FDSDEOH1)87

5(3 HVWLPDWHNHHS 3/1)87

U7KH\ HVWLPDWH WKDW WKH SULFH IRU FDUV FDQ FHUWDLQO\ JR XS DJDLQV

LQH[FHVV ORYHVWD\ 1)8710/

DOVR EHFDSDEOH1)87 (03+

U2I FRXUVH LW LV SRVVLEOH WKDW VKH ORYHV PRQH\ PRUHV

9 ʨʰin ʥin 9 mɛ ¶PD\EH• 7KH SDWWHUQ 9Q8LQ 8LQ9 PŽ OLWHUDOO\ PHDQV ULI RQH ZDQWV WR 9 RQH ZLOO 9V ,W LV XVHG WR H[SUHVV D SRVVLEOH HYHQW WKDW PD\ KDSSHQ DV WKHUH LV QRWKLQJ WKDW ZRXOG FRQFHLYDEO\ SUHYHQW RU SUHFOXGH LW IURP KDSSHQLQJ

0DQGDOD\DW WKLV \HDU VN\ PXFK 1)87

VD\ 1)8710/

EHVR ZDQW

EHVR )87

U,W PD\ EH WUXH WKDW WKHUH LV D ORW RI UDLQ LQ 0DQGDOD\ WKLV \HDUV

Šºå†mØäyºiäyßç ‡àjŒmØ…sØŁ‡à‚ƒØfl “…S8ZŽ bZLQGZHJiGæb ,t8LQ OŽ o ,tPŽ PHPEHU3/6%-&2175 NQRZZDQW DOVR NQRZ)87 U7KH PHPEHUV PD\ SUREDEO\ NQRZV

ŠäyºŠïiæ‡nØäyº „jŒmØ„‚ƒØfl “…WZp“…QRXQ,L“WZH \i8LQ \iPŽ H[SHULHQFHQHZ3/ JHWZDQW JHW)87 U0D\EH \RX FDQ JHW QHZ H[SHULHQFHVV

9 kàun 9 mɛ ¶SRVVLEO\• 6LPLODU WR WKH SUHFHGLQJ WKH SDWWHUQ 9NjXQ 9 PŽ [SUHVVHV WKDW DQ HYHQW PD\ RFFXU DV WKHUH LV QR REYLRXV REVWDFOH WR LWV RFFXUUHQFH /LWHUDOO\ WKH SKUDVH PHDQV ULI LWVV JRRG LW ZLOO KDSSHQV

jmØ€ŒßŁyàâä…߁‡ßŁäyº‡ß æiàiØäißmØŁæiàiØ‚ƒØfl N8…P\jGy OæoEi>jGZH>D QDL“NjXQ QDL“PŽ $663/ JUHHGVRQ3/RQO\ OLNHJRRG OLNH)87 U3HUKDSV \RX JUHHG\ SHRSOH RQO\ OLNH WKLV NLQG RI SUDFWLFHV

PHWKRGJRRG VRPH2%- JHW JRRG

JHW )87

U<RX PD\ SHUKDSV OHDUQ WKH JRRG WHFKQLTXHV RI WKH JUHDW ZULWHUVV

nØŁnߣyy؇ªäyº ‡àäißmØŁ‡à‚ƒØfl VuQ]jGD“,XGZH ,tJjXQ ,tPŽ FRQVLGHUDEOHSHUVRQ3/ NQRZJRRG NQRZ)87 U7KRVH ZKR NQRZ KRZ WR WKLQN PD\ SHUKDSV NQRZ WKH DQVZHUV

7KH IROORZLQJ VHQWHQFHV DUH LQ /LWHUDU\ %XUPHVH

ŒŠäïißmØŁiàâ ŠmØyß}i؇âæŁnºå‡ª‚ŒßŁ ‡àäißmØŁ‡à‚sØfl “L “…QjXQJR “LQWDQŽ“ ,zXQVZŽ o>XP\j ,tJjXQ ,tP\L WKLV PDWWHU2%- LQWHUQHW XVHSHUVRQ3/ NQRZ

JRRG NQRZ)87

U,QWHUQHW XVHUV PD\ SHUKDSV EH DZDUH RI WKLV PDWWHUV

ä„äŠßiØmâ~Øä}ä‡ßmÞŁ‡‡ºßŁ„ß…‚ØŁ ‚ì}ØŁo–„äißmØŁ„‚sØfl \H“DX“ ÔRX“QH>æo Ôj“t ,Zj\D OjQ ZDWHUEHORZ GLYHVWD\5(/ 1VK3266 JR10/ ZD\

U<RX PD\ EH DEOH WR JXHVV WKH SDWK RI D 1VK LQ GHHS ZDWHUV

lauʔ ¶DV PXFK DV SUREDEO\• 7KH YHUEODX“UEH DV PXFK DV EH HQRXJK DSSUR[LPDWHO\V KDV VHYHUDO JUDP PDWLFDO XVHV RQH RI WKHP PRGDO ,W GHQRWHV DQ HYHQW WKDW DV PXFK DV RQH FDQ WHOO PD\ RFFXU RU D VLWXDWLRQ WKDW PD\ EH WKH FDVH 7KLV DX[LOLDU\ LV XVHG ZLWK WKH VDPH IXQFWLRQ DOVR LQ /LWHUDU\ %XUPHVH

{ÆoàâmØ‚ìß ämºîsØçi{Ø‚„ìàä…ßi؁ªŁfl GL V8DLQKPD ÔZHS8\pND“ P…ïtODX“S8 WKLV VKRSDW PRQH\1OOFDUG 1(*H[LVWDVPXFKDV1(* U7KH\ GRQVW VHOO SKRQH WRSXS FDUGV LQ WKLV VKRS , JXHVVV

{Æs~âkæiߣ„ìàä…ßiØ‚ƒØfl GL Ñi E…JDQ Nj ïtODX“PŽ WKLV QLJKW %DJDQ FDU H[LVWDVPXFKDV)87 U7KHUH ZLOO EH D EXV WR %DJDQ WRQLJKW ,VP VXUHV

jâoàâ „}Øiâ}Øä„ßiØä…ßiØð~Æfl N8~ V8R \DQJRXQ \DX“ODX“SL QRZ VD\ <DQJRQ DUULYHDVPXFKDV16,7 U+H PXVW KDYH DUULYHG LQ <DQJRQ E\ QRZV

{Æiä…Łäyºäoßçyß ä‚ŒßiØäyßmØæŁä…ßiØyƒØfl GL N8…OqGZH V8æbGD P\DX“WDXQ ïzXQODX“WŽ WKLV FKLOG3/ SOD\

1)8710/ PRQNH\ HYHQ

GHIHDWHGDVPXFKDV 1)87

U7KHVH NLGV SOD\ DURXQG VR PXFK WKDW WKH\ FRXOG HYHQ EHDW WKH PRQNH\VV

nÆŁ~ºßŁ„ìßyyØ„mØ Æ…Œæ}ßînØä…ßiØyƒØfl VuSZj ïDGD“\LQ ELO\DQQD S8\L“ODX“WŽ ZHDOWK VHHNDEOHLI ELOOLRQDLUH EHDVPXFKDV1)87 U,I \RX NQRZ KRZ WR GR EXVLQHVV \RX FRXOG EH D ELOOLRQDLUHV

7KH IROORZLQJ VHQWHQFHV DUH LQ /LWHUDU\ %XUPHVH

ºæðàŁyàâŁyiØ‚‚ŒßŁiàâ Šà~Ø‚iØ䅅ߣˆâ~mØ zmØ‚ìyØ„ä…ßiØä~‡sØfl S8~QS8\zWzWŽ“ KP~P\jJR “HL“PŽ“ OH Oj K~ SURJUHVV3/2%- GUHDP (83+ 34 5(3

ELQ W8LQKPD“\iODX“SH>L (;&/ WKLQNQRWHJHWDVPXFKDV(83+1)87

U7KHVH SURJUHVVHV PDNH PH IHHO DV LI , ZHUH GUHDPLQJV

nàyØ~âyÆŁ‡sØ ˆà-äƒßkÆæiÆŁ‚ŒßŁzæ‚ì omØŁ‡i؅߇sØoàâ‡sØ‚ìß ˆâyØä…ßiØä~‡sØfl VHL“E…Gu>L KHLQGX \æoJL8uP\jW8DQKPi V8uQ,Ž“OD>L URVDU\EHDGV6%- +LQGX \RJL3//2&IURP RULJLQDWH

V8R>LKPD KRX“ODX“SH>L VD\1)87723 EHVRDVPXFKDV(83+1)87

U7KDW WKH URVDU\ EHDGV RULJLQDWH IURP +LQGL \RJLV LV SUREDEO\ WUXHV

léin-mɛ mɛ ¶ZLOO SUREDEO\ FHUWDLQO\• 7KH FRPSRXQG IXWXUH PDUNHU OpLQPŽ FDQ EH XVHG WR DGG D QRWLRQ RI DV VXPHG FHUWDLQW\ E\ WKH VSHDNHU DERXW D IXWXUH HYHQW $W WKH VDPH WLPH EHLQJ D IXWXUH PDUNHU LW H[SUHVVHV D KLJK GHJUHH RI SUREDELOLW\ UDWKHU WKDQ DEVR OXWH FHUWDLQW\ )RU PDQ\ VSHDNHUV WKLV PDUNHU LV XVHG LQWHUFKDQJHDEO\ ZLWK WKH VLPSOH IXWXUH PDUNHU Ž ZK Q UHIHUULQJ WR WKLUG SHUVRQ VXEMHFWV RU 1UVW RU VHFRQG SHUVRQ VXEMHFWV LQ FRPELQDWLRQ ZLWK FHUWDLQ PRGDOV

/LNH WKH VLPSOH IXWXUH PDUNHU PŽ WKH FRPSRXQG PDUNHU OpLQPŽFDQ EH DS SOLHG WR QRQIXWXUH HYHQWV DERXW ZKLFK WKH VSHDNHU LV QRW FHUWDLQ H[SUHVV LQJ HSLVWHPLF SRVVLELOLW\ )RU QHJDWLYH H[SUHVVLRQVP…KRX“ LV DGGHG 7KLV LV SUREDEO\ PRUH FRPPRQ LQ WKH OLWHUDU\ WKDQ LQ WKH FROORTXLDO VW\OH 7KH VDPH IRUPV DUH XVHG LQ /LWHUDU\ %XUPHVH

“ }ß„ÆzàâŁð~Æ ‡ªŠà‚Ø‚ìß„ìà‚ƒØfl Q8DX“QD\L W8zEL ,X “HLQKPD ïtPŽ VL[KRXU EHDW16,7 KRXVHDW H[LVW)87 U,WVV DOUHDG\ VL[ RVFORFN KH VKRXOG EH KRPH QRZV

Šå{Þ ‡ªäî~ßyåçnߣä‡ßiØoàâmØînØ…à‚Ø炃Øfl “Ž oGD ,X S\æoGŽ b Vj,DX“V8DLQ S8\L“OpLQPŽ WKDW10/ VSHDN1)87’(3 HDWGULQNVKRS EH63(&)87 U7KDW LV SUREDEO\ WKH UHVWDXUDQW KH ZDV WDONLQJ DERXWV

7KH IROORZLQJ VHQWHQFHV DUH LQ /LWHUDU\ %XUPHVH

6(4 RQH ZHHN

ZLWKLQ GLVHDVH UHOLHYHGJR,03257 63(&)87

U2QH ZHHN DIWHU WDNLQJ WKLV PHGLFLQH \RX ZLOO VX3HU OHVV IURP WKH GLVHDVHV

WKLV GD\2%- SHRSOH6%- ZKHQ)87 5(675

IRUJHW3/ 63(&)87

1(* EHVR

U3HRSOH ZLOO QHYHU IRUJHW WKLV GD\V

ä…ç…ßä„Ło„ßyàâ‡sØ ä‚ŁjŒmØ„ßä‚Łïi…à‚Øç‚sØ‚ˆâyØfl OpOD\qV8…\DGy>L Pq8LQ\D Pq8iOpLQP\L P…KRX“ UHVHDUFKHU$663/6%- DVNZDQW10/ DVN3/63(&

)87 1(* EHVR

U5HVHDUFKHUV SUREDEO\ ZRQVW DVN DQ\ NLQG RI TXHVWLRQV DFFRUGLQJ WR WKHLU ZKLPV DQG IDQF\V

9 mɛ tʰin-dɛ ¶ZLOO9 , WKLQN• 6SHFXODWLRQ RU XQFHUWDLQW\ E\ WKH VSHDNHU FDQ DOVR EH H[SUHVVHG RYHUWO\ E\ DGGLQJ WKH SKUDVHW8LQGŽU, WKLQNV DIWHU WKH VWDWHPHQW 7KLV H[SUHVVLRQ LV IUHTXHQW LQ FDVXDO VSHHFK

{Æä}âæŁ~àyØyƒØ zmØyƒØfl GL Qp \zXQ SHL“WŽ W8LQGŽ WKLV GD\ R4FH FORVH1)87 WKLQN1)87 U7RGD\ WKH R4FH LV FORVHG , WKLQNV

{ÆiߣäißmØŁ‚ƒØ zmØyƒØfl GL Nj NjXQPŽ W8LQGŽ WKLV 1OP JRRG)87 WKLQN1)87 U7KLV PRYLH VKRXOG EH JRRG , WKLQNV

7KH FRSXODS8\L“ UEHV FDQ EH XVHG DV D SRVWYHUEDO DX[LOLDU\ LQGLFDWLQJ WKDW DQ HYHQW DFWXDOO\ KDSSHQHG RU ZLOO KDSSHQ ,W FDQ EH XVHG LQ D4UPDWLYH DV ZHOO DV QHJDWLYH FRQWH[WV )UHTXHQWO\ H[SUHVVLRQV ZLWKS8\L“KDYH SDVW HQVH LQWHUSUHWDWLRQ 7KLV SRVWYHUEDO DX[LOLDU\ LV XVXDOO\ YRLFHG WKRXJK IRU VRPH VSHDNHUV LW LV XQYRLFHG LQ DOO FRQWH[WV

iߣä~íiä} â}ØŁ}å äî~ßînØïiyƒØfl NjEæJiQH S8zXQQŽ b S\æoE\L“QiGŽ FDURQIURP SKRQHZLWK VSHDNEH3/1)87 U:H HQGHG XS WDONLQJ RQ WKH SKRQH LQ WKH FDUV

Šiàâ}åäî~ßînØ…ßŁfl “…NRQŽ b S\æoE\L“ Oj ROGHUEURWKHUZLWK VSHDNEH 34 U’LG \RX WDON ZLWK \RXU EURWKHU"V

‡ª…iØz~Øàâ ‚nØŁnߣîn؁ªŁfl ,X OŽ“W8D“S8y P…VuQ]jE\L“S8 PDUU\IRU 1(*FRQVLGHUEH1(* U6KH GLG QRW FRQVLGHU JHWWLQJ PDUULHG DW DOOV

1HFHVVLW\ DQG REOLJDWLRQ WR GR VRPHWKLQJ DUH H[SUHVVHG E\ WKH ERXQG SRVWYHU EDO DX[LOLDU\\i UJHWV 8QOLNH LQ LWV IXQFWLRQ DV DQ DELOLW\SRVVLELOLW\ PDUNHU LQ WKLV IXQFWLRQ\i UJHWV LV QHYHU VHSDUDWHG IURP WKH PDLQ YHUE DQG LW FDQQRW RFFXU DORQH<i UJHWV DV D QHFHVVLW\ PDUNHU FDQ EH XVHG ZLWK QRQIXWXUH IX WXUH DQG QHZ VLWXDWLRQ VWDWXV PDUNHUV ,W LV PRVW FRPPRQO\ XVHG ZLWK WKH IXWXUH PDUNHUPŽ EXW DOVR RFFXUV ZLWK WKH QRQIXWXUH PDUNHU WŽ GŽ

‡ª‡ºßŁ„mØ iı}ØäyßØ…sØŁ‡ºßŁ„‚ìßfl ,X ,Zj\LQ Q…Qæ OŽ o ,Zj\iKPD JRLI 0 DOVR JRJHW)87 U,I KH JRHV , KDYH WR JR WRRV

änßänߊà~Øfi ‚}iØî}ØŠänßæiÆŁz„‚ƒØfl Væo]æo “HL“ P…QŽ“S8\DQ “…Væo8u W8i\iPŽ HDUO\HDUO\ VOHHS WRPRUURZ 10/HDUO\ELJ VWDQGXSJHW)87 U*R WR EHG HDUO\ ZH KDYH WR JHW XS YHU\ HDUO\ WRPRUURZV

ŠymØŁä‚Łyß}å äî~ß…àâiØ„yƒØfl “…WuQ PqGDQŽ b S\æoODL“\iGŽ E\IRUFH DVN1)8710/ZLWK VSHDNIROORZJHW1)87 U6LQFH WKH\ LQVLVWHG , KDG WR WHOO WKH WUXWKV

ä}ßiØoâæŁ‚ìß ŠæŁä~Ł…àâiØ„yƒØfl QDX“V8zXQKPD “…ïzXQ SqODL“\iGŽ EHKLQGHQGDW GHIHDW JLYHIROORZJHW1)87 U,Q WKH HQG , KDG WR VXUUHQGHUV

7KH QHJDWHG IRUPP… 9 \i PHDQV UGRQVW KDYH WR 9V EXW LV DOVR IUHTXHQWO\ SUREDEO\ PRUH FRPPRQO\ UHDG DV UPXVW QRW 9V

‚}iØî}ØäiŒßmØ‚‡ºßŁ„ªŁfl P…QŽ“S8\DQ QjXQ P…,Zj\iE WRPRUURZ VFKRRO 1(*JRJHW1(* U, GRQVW KDYH WR JR WR VFKRRO WRPRUURZV

…iØ‚ìyØ‚„ìà„mØ ‚†mØ„ªŁfl OŽ“KPD“ P…ït\LQ P…ZLQ\iE WLFNHW 1(*H[LVWLI 1(*HQWHUJHW1(* U,I \RX GRQVW KDYH D WLFNHW \RX PXVW QRW HQWHUV

7R HPSKDVL]H WKH UHDGLQJ UGRQVW KDYH WR 9V WKH SHULSKUDVWLF FRQVWUXFWLRQ 9 V…\D ]…\D P…ïtE RU 9V…\D ]…\D P…ORE LV XVHG 7KH FRUUHVSRQGLQJ SRV LWLYH SDWWHUQV 9V…\D ]…\D ïtGŽ DQG 9V…\D ]…\D ORGŽ RFFXU ZLWK WKHLU OLWHUDO PHDQLQJ UKDYH VRPHWKLQJ WR 9V RU UQHHG WR 9V UHVSHFWLYHO\

jx…ߎŁfi äî~ßn„ß„ìà…àâfl N8…Qi ODRQ S\æo]…\D ïtOy PRPHQW FRPHIXUWKHU VSHDNWKLQJWR H[LVW1)87 U&RPH KHUH D PLQXWH , KDYH WR WHOO \RX VRPHWKLQJVU, KDYH VRPHWKLQJ WR WHOO \RXV

‡ªiàâ‡ºßŁäî~ßn„ß…àâ䇣…ߣfl ,~JR ,Zj S\æo]…\D OR>q Oj ’(32%- JR VSHDNWKLQJWR QHHG\HW 34 U’R , VWLOO QHHG WR JR DQG WHOO KLP"V

…ßn„ß‚…àâäyß灪Łfl OD]…\D P…ORGæbE FRPHWKLQJWR 1(*UHTXLUH&21751(* U<RX GRQVW KDYH WR FRPH DQ\PRUHV

mÞçiàâäî~ßn„ß‚…àŁfl OÔiJR OS\æo]…\D P…ORE )$0’(3 VSHDNWKLQJWRGR 1(*UHTXLUH1(* U<RX GRQVW KDYH WR WHOO PHV

,Q /LWHUDU\ %XUPHVH QHJDWHG REOLJDWLRQ LV H[SUHVVHG E\ WKH SDWWHUQ 9\DQ P…OR ULW LV QRW QHFHVVDU\ WR 9V RU 9V…\D ]…\D P…OR UWKHUH LV QR QHHG WR 9V

Œ‡mØy}ØŁŠyºiØ æiàymØnß„mØŁ‡ºmØŁ„}Ø‚…àâ~Þfl “L ,LQGjQ “…WZŽ“ QRWLQ V…\uQ ,ZuQ\DQ P…ORED WKLV FRXUVH IRU LQDGYDQFH OLVW SXWLQ

VRWKDW 1(* UHTXLUH ,03257

U7KHUH LV QR QHHG WR SUHUHJLVWHU IRU WKLV FRXUVHV

‡mØçâ}ØŁiàâ ‚ª„mØŁŠyàâmØŁ ß‚łî~î~mØ„}Ø ‚…àâ~Þfl ,tQ S8zXQJR PX\uQ “…WjLQ EDKP\i )250’(3 SKRQH2%- RULJLQ DFFRUGLQJ ZKDW5(675

S\~E\LQ\DQ P…ORED DUUDQJHVRWKDW 1(*UHTXLUH,03257

U7KHUH LV QR QHHG WR FKDQJH DQ\ RULJLQDO VHWWLQJ RI \RXU SKRQHV

WKLQJWR 1(*UHTXLUH ,03257

U7KHUH LV QR QHHG WR SD\ WKH H[SHQVHV IRU WKH LQWHUSUHWHUV

ŒäjÞmØŁä…ßmØŁæiÆŁ‡sØ này؆mØnߣºƒØîn؇sØià⠇懃„ìàn„ß ‚…àâ~Þfl “L N8jXQOjXQ8u>L VHL“ZLQ]jEZŽ S8\L“,LJR ,DQ>…\i WKLV EHOOELJ6%- LQWHUHVWHG

JRRGIRU EH1)872%- GRXEW

U7KHUH LV QR QHHG WR GRXEW WKDW WKLV ELJ EHOO LV LQWHUHVWLQJV

7KH GHVLGHUDWLYH PDUNHUQ8LQ 8LQGRHV QRW FRUUHVSRQG WR D OH[LFDO YHUE LQ WKH PRGHUQ ODQJXDJH ,W KDV RQO\ JUDPPDWLFDO VWDWXV DQG FDQQRW EH VHSDUDWHG IURP WKH PDLQ YHUE RU RFFXU DV D IUHH IRUP $V WKH IHHOLQJ RI ZLVKLQJ WR GR VRPHWKLQJ QRUPDOO\ UHIHUV WR D SUHVHQW VWDWH WKH GHVLGHUDWLYH PDUNHU Q8LQ 8LQUZDQW WRV GRHV QRW RFFXU ZLWK WKH IXWXUH PDUNHU ,W LV FRPPRQ ZLWK QRQIXWXUH QHZ VLWXDWLRQ DQG QHJDWLYH VWDWXV PDUNHUV

nߣjŒmØyƒØfl Vj8LQGŽ U, ZDQW WR HDWV ‡ºßŁjŒmØyƒØ ,Zj8LQGŽ U, ZDQW WR JRV Šà~ØjŒmØð~Æfl “HL“Q8LQEL U, ZDQW WR VOHHS QRZV

î‚}Ø‚ß‚äßØzâyØyåçpßyØiߣ䅣äyº àâiØjŒmØyƒØfl P\DQPDKP~ S8æW8RX“WŽ b ]D“NDOqGZH \DL“Q8LQGŽ 0\DQPDU PDWWHU

UHYHDOEULQJRXW 1)87’(3

1OP’,03/ EHDWZDQW 1)87

U, ZDQW WR PDNH 1OPV WKDW SRUWUD\ 0\DQPDU FXOWXUHV

‡ª‚ŒßŁià⠊ߣ‚iàâŁjŒm؁ªŁfl ,XP\jJR “jP…Nz8LQE RWKHUSHRSOH2%- SRZHU1(*GHSHQGZDQW1(* U, GRQVW ZDQW WR GHSHQG RQ WKH RWKHUVV

%HVLGHV H[SUHVVLQJ D ZLVK WR GR VRPHWKLQJ WKH VDPH PDUNHU LV DOVR XVHG WR UHIHU WR HYHQWV WKDW DUH IHOW WR KDSSHQ RU VHHQ DV OLNHO\ WR KDSSHQ

iı}Ø‚}sØŁ}sØŁŒßŁjŒmØyƒØfl Q…Pi QŽ oQŽ o S8\j8LQGŽ ) OLWWOHOLWWOH VLFNZDQW1)87 U, IHHO OLNH ,VP JRLQJ WR EH VLFNV

{ÆiÆŁâyØiäyßç ~ŒiØjŒmØä}ð~Æ zmØyƒØfl GL NuERX“NiGæb S\Ž“Q8LQQHEL W8LQGŽ WKLV NH\ERDUG6%-&2175 EURNHQZDQWVWD\16,7 WKLQN1)87 U,W ORRNV OLNH WKLV NH\ERDUG LV JRLQJ WR EUHDN GRZQ VRRQV

{Æ~ºåià⠁ƒØ…àâ‚ŒßŁ‡âæŁ‡~ØjŒmØ~Þ‡…åfl GL SZŽ oJR EŽORP\j ,zXQ,D“Q8LQED>…OŽ o WKLV HYHQW2%- KRZ3/ DQDO\]HZDQW,032571)87&4 U+RZ GR \RX ZDQW WR DQDO\]H WKLV PDWFK"V

7KH IROORZLQJ VHQWHQFH LV LQ /LWHUDU\ %XUPHVH

„߇ƍyâi }sØŁ}sØŁäßiØî~}ØjŒmØä}‡sØfl \D>L“~G~Ji QŽ oQŽ o S8DX“S\DQ8LQQH>L ZHDWKHU6%- OLWWOHOLWWOH DEQRUPDOZDQWVWD\1)87 U7KH ZHDWKHU LV DFWLQJ IXQQ\ DV LI LW ZDQWHG WR JR EDGV

7ZR SRVWYHUEDO DX[LOLDULHV FDQ EH XVHG WR FRQYH\ WKH PHDQLQJ RI UDSSUR SULDWH WR GRV QDPHO\,tQ >tQ DQGW8DL“ GDL“ 7KH\ GRQVW RFFXU DV IUHH IRUPV RQ WKHLU RZQ EXW FDQ EH IRXQG LQ OH[LFDO FRPSRXQGV VXFK DV,tQWæRU ,tQGæ UEH SURSHU DSSURSULDWH 1WV 8DL“,tQUEH DSSURSULDWH 1WWLQJV DQG W8DL“WDQUEH ZRUWK\ GHVHUYHV 7KH QHJDWLRQ XVXDOO\ LVP… 9 ,tQ >tQ DQGP… 9 W8DL“ GDL“ WKRXJK WKH QHJDWRUP… PD\ RFFXU EHWZHHQ WKH PDLQ YHUE DQG WKH DX[LOLDU\

{Æ…àâ…ª‚ŒàŁiàâ kâxØî~zàâiØyƒØfl GLOR OXP\zJR JRXQ S\~GDL“WŽ WKLVDV SHUVRQNLQG2%- KRQRU GRSURSHU1)87 U7KLV NLQG RI SHUVRQ VKRXOG EH KRQRUHGV

{Æ…àâŠâ~sß‚ŒàŁäyºiàâ ä‡ä‡jŒßjŒß ä…ç…ßzàâiØyƒØfl GLOR “…Q~S\LQÑDP\zGZHJR ,H>HQ8D8D OpODGDL“WŽ WKLVDV DUWNLQG3/2%- FHUWDLQO\ VWXG\SURSHU1)87 U6XFK DUWZRUNV VKRXOG EH VWXGLHG WKRURXJKO\V

‚à}ØŁiä…ŁynØäƒßiØŠä}}å iàâƒØjÑߊ…ìiàâ kânàâi؇mØçyƒØfl PqLQJ…Oq W…

JLUO RQH &/)

10/VWD\ ZLWK

ERG\ 10/SUHWW\ 2%-

LPSRUWDQFHSODQW SURSHU1)87

U$ \RXQJ ZRPDQ VKRXOG WDNH FDUH RI WKH EHDXW\ RI KHU ERG\V

…ªyàâmØŁ‚ìß iàâƒØ~àâmØoâæŁîyØjºmØç „ìà‡mØçyƒØfl OXGjLQKPD NREDLQ V8zXQS8\D“N8ZtQ ït>tQGŽ SHUVRQHYHU\DW RZQ GHFLGHSHUPLVVLRQ H[LVWSURSHU1)87 U(YHU\ERG\ VKRXOG KDYH D ULJKW WR GHFLGH IRU KLPVHOIKHUVHOIV

{Æ…à⊲„߃؂ŒàŁiàâ ‡ª‚àyØäjí‡mØ灪Łfl GLOR “DQG…\ŽP\zJR ,X P…S8HL“N8æ>tQE WKLVDV GDQJHUNLQG2%- 1(*LQYLWHFDOOSURSHU1(* U6KH VKRXOGQVW LQYLWH WKLV NLQG RI GDQJHUV

…‚ØŁ~àyØoàâäŠßmØ ‚…â~؇mØ灪Łfl OjQ SHL“V8y“DXQ P…ORX“,tQE ZD\ EORFNVRWKDW 1(*GRSURSHU1(* U<RX VKRXOGQVW EORFN WKH URDGV

‚mØŁ‡ªiàâ‡ºßŁäî~߇mØçyƒØfl PuQ ,~JR ,ZjS\æo>tQGŽ )$0 ’(32%- JRVSHDNSURSHU1)87 U<RX VKRXOG JR DQG WHOO KLPV

2WKHU DX[LOLDULHV WKDW FDQ EH XVHG WR H[SUHVV DSSURSULDWHQHVV DUHWDQ GDQUEH VXLWDEOH ZRUWK\V DQG“D“ UEH SURSHU DSSURSULDWHV 7KH ODWWHU LV XVHG UDWKHU LQ IRUPDO FRQWH[WV 7KH QHJDWLRQ XVXDOO\ LVP… 9 W Q GDQ WKRXJK WKH QHJDWRU P… PD\ DSSHDU EHWZHHQ WKH PDLQ YHUE DQG WKH DX[LOLDU\

IRU QRWKLQJ

JLYHVWD\1)8710/ &2175

1(*EHVR ZRUWK\1(*

U,W FDQVW EH WKDW WKHVH WKLQJV DUH GLVWULEXWHG IUHH RI FKDUJHV

‡ªoÆ‚ìß {Æä…ßiØ…â~Ø~àâmØjºmØç ‚„ìày}؁ªŁfl ,~]LKPD GLODX“ ORX“SDLQJZtQ P…ïtGDQE ’(3 /2&DW

WKLVDVPXFKDV GRSRVVHVV SHUPLVVLRQ

1(*H[LVW ZRUWK\1(*

U+H FDQVW KDYH ULJKWV WR WKDW H[WHQWV

î~£}ßiàâ äjÞmØŁäŠŁäŠŁ}å äî„ìmØŁàâ yàâiØyº}ØŁŠ~ØyƒØfl S\D“,…QDJR JjXQ“q“qQŽ b S8\HïuQEy WDL“WQ“D“WŽ SUREOHP 2%-

KHDGFRROFRRO ZLWK

DQVZHUFOHDU IRU

HQFRXUDJHSURSHU 1)87

U, VKDOO HQFRXUDJH \RX WR VROYH WKH SUREOHP ZLWK D FDOP KHDGV

à⣄ߊnØŠ…ßäyºiàâ zà}ØŁ‡à‚ØŁŠ~ØyƒØfl \z\D“…VLQ“…ODGZHLJR W8qLQ,qLQ“D“WŽ WUDGLWLRQFXVWRP3/2%- SUHVHUYHSURSHU1)87 U:H VKRXOG SUHVHUYH RXU WUDGLWLRQV DQG FXVWRPVV

iàâƒØçäißmØŁäïißmØŁ iàâƒØ‚äî~ߊ~؁ªŁfl Ny NjXQ8jXQ NR P…S\æo“D“S8 ERG\’(3 JRRGPDWWHU ERG\ 1(*VSHDNSURSHU1(* U2QH VKRXOG QRW WDON DERXW RQHVV RZQ YLUWXHVV

7KH OH[LFDO YHUEPt FDQ EH WUDQVODWHG DV UPDQDJH WR FDWFKV RU UEH FDXJKWV $V DQ DX[LOLDU\ LW FRQYH\V WKH PHDQLQJ RI UGRLQJ ZLWKRXW LQWHQWLRQ ZLWKRXW FRQVLGHULQJ WKH H3HFWV E\ DFFLGHQW ZLWKRXW PHDQLQJ WR GRV 7KLV DX[LO LDU\ LV XVHG WR WDNH DZD\ WKH UHVSRQVLELOLW\ IRU DQ HYHQW IURP WKH VXEMHFW DQG LV HVSHFLDOO\ IUHTXHQW ZLWK 1UVW SHUVRQ VXEMHFWV 7KH QHJDWHG IRUPP… 9 PtE PHDQV WKDW WKH VXEMHFW IDLOHG WR GR VRPHWKLQJ LQDGYHUWHQWO\ ZLWK RXW PHDQLQJ VR 7KH VFRSH RI WKH QHJDWLRQ LV RYHU WKH PDLQ YHUE QRW WKH DX[LOLDU\

Šà‚Øiàâ Š„‚ØŁ‡yà„ð~ÆŁ ‚ŒiØ„s؆å‚àyƒØfl “HLQJR “…\jQ >…Gt\iEu P\Ž“\H ZŽ oPtGŽ KRXVH2%- YHU\ PLVV6(4 H\HOLTXLG KRYHUFDWFK1)87 U, FRXOGQVW KHOS WKLQNLQJ RI KRPH DQG JHWWLQJ WHDUV LQ P\ H\HVV

3266 UHFRUGROG3/ RSHQ

6(4 ODXJKFDWFK 1)87

U6RPHWLPHV , OLVWHQ WR KLV ROG UHFRUGV DQG FDQVW KHOS ODXJKLQJV

Šå{Æâ~Ø„ìmØïisØç„mØŁ …ªïi‚ØŁäyºiàâ ‡}ߣ‚àyƒØfl “Ž oGL \RX“ïLQ Qt\uQ OX8jQGZHJR ,…QjPtGŽ WKDW PRYLH ORRNZKLOH YLOODLQ3/2%- SLW\FDWFK1)87 U:DWFKLQJ WKDW 1OP , FRXOGQVW KHOS IHHOLQJ FRPSDVVLRQ IRU WKH YLOODLQVV

oßyß}å Šß…ªŁäïißØynØzâ~Ønߣ…àâiØ‚àyƒØfl iƒØ…àâ„Æiàâ ‡yà‚zߣ…àâiØ‚àªŁfl V8DGDQŽ b “DO8æ W…W8RX“ VjODL“PtGŽ KXQJU\1)871/ SRWDWRIU\ RQHSDFNDJH HDWIROORZFDWFK

1)87

U%HLQJ KXQJU\ , HQGHG XS HDWLQJ D SDFNDJH RI SRWDWR FKLSV , GLGQVW HYHQ QRWLFH WKH FDORULHVV

…ªä}‚n„àyØî‚mØç…àâ ~àâiØoæ‡à~Ø‚nâ‚àªŁfl OXQHKP~]…\HL“ P\tQOy SDL“V8DQ ,HL“ P…V~PtE SHUVRQVWD\PDWWHU H[SHQVHV

KLJK68% PRQH\ YHU\ 1(*FROOHFW FDWFK1(*

U6LQFH WKH OLYLQJ FRVWV DUH KLJK , GLGQVW PDQDJH WR VDYH PXFK PRQH\V

’DULQJ WR GR VRPHWKLQJ WKDW LV QRW EHLQJ DIUDLG RI GRLQJ LW LV H[SUHVVHG E\ WKH DX[LOLDU\\Ž o IURP WKH OH[LFDO YHUE\Ž o UEUDYH GDULQJ GDUHV RUZ~Q UGDUH

ULVNV 7KH ODWWHU LV KDUGO\ XVHG DV D IXOO YHUE DQG RFFXUV OHVV IUHTXHQWO\ WKDQ WKH IRUPHU LQ WKH FROORTXLDO ODQJXDJH

Šå{Þ iŒ‚ŠjàâmØŠ‚ß äî~ß„åyƒØfl “Ž oGD Q…Pi “…N8DLQ“…PD S\æo\Ž oGŽ WKDW10/ ) 1UPO\ VSHDNGDUH1)87 U, GDUH VD\ WKDW 1UPO\V

ƒâæïisØjŒiØŠyºiØ Š‡iØiàânº}Ø„åyƒØfl \RXQQL8Ž“ “…WZŽ“ “…,Ž“NR V~Q\Ž oGŽ WUXVW10/ IRU OLIH2%- ULVNGDUH1)87 U, GDUH JLYH P\ OLIH IRU P\ FRQYLFWLRQV

‡ª†mØ…ßyß ƒØ‡ª‚ì ‚yߣ„偪Łfl ,X ZLQODGD EŽ>XKPi P…Wj\Ž oE HQWHUFRPH1)8710/ ZKR5(675 1(*IRUELGGDUH1(* U1RERG\ GDUHV IRUELGGLQJ KLV HQWUDQFHV

ƒØ‡ª i}Øiºi؄凅åfl EŽ>X NiQNZŽ“\Ž o>…OŽ o ZKR REMHFWGDUH1)87&4 U:KR GDUHV REMHFW WR LW"V

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

Š‚sØ„mØŁiàâ zâyØäßØ‚äî~߆æç䇣~Þfl “…P\L\uQJR W8RX“S8æP…S\æoZ~Q>qED QDPHRULJLQDO2%- EULQJRXWUHYHDO1(*VSHDNGDUH\HW,03257 U, GRQVW GDUH WHOO WKHP \HW P\ UHDO QDPHV

XQWLO WKLV ZD\

2%- FRQQHFW ZDONGDUH,03257

1)87 U, GDUH WR FRQWLQXH ZDONLQJ RQ WKLV SDWK XQWLO , UHDFK WKH JRDOV

Š‚ì}ØyiƒØˆâyØ‚ì}ØäïißmØŁ iŒà}Øoàâ†æç~Þ‡sØfl “…KPDQG…JŽ KRX“KPDQ8jXQ QHLQV8RZ~QED>L 10/FRUUHFW\UHDOO\ EHVRFRUUHFWPDWWHU VZHDUGDUH,03257

1)87 U, GDUH VZHDU WKDW LW LV WUXHV

ŠänßmØçïiߣ‚sØnà⣖ Š‡iØî~mØŁî~mØŁ‚„ì†æç~Þfl “…ViXQ QjP\L Vz\Zp “…,Ž“ S\uQE\uQ P…ïXZ~QED JXDUG KHDU)87 IHDU6(4 OLIH VWURQJ

VWURQJ 1(*EUHDWKHGDUH ,03257

U%HLQJ DIUDLG WKDW WKH JXDUG PLJKW KHDU PH , GLGQVW GDUH EUHDWKH KDUGV

7KH SRVWYHUEDO PDUNHU\Ž“ UGDUH KDYH WKH KHDUW WRV LQGLFDWHV WKDW WKH VXE MHFW GDUHV GRLQJ VRPHWKLQJ ZLWKRXW FRQVLGHULQJ RWKHU SHRSOHVV IHHOLQJ RU WKH LPSDFW RI KLV DFW RQ RWKHU SHRSOHVV OLYHV 7KH FRQQRWDWLRQ RI WKLV DX[LOLDU\ LV DSSDUHQWO\ OLQNHG WR WKH OH[LFDO YHUE\Ž“VŽ“ UEH FUXHOV

‚mØŁmÞ犇åiàâ jºå„iØyƒØä}ßØfl PuQ Ôi “…,Ž oJR N8ZŽ o\Ž“WŽ Qæ )$0 )$0’(3 OLYHU2%- VSOLWGDUH1)87 &63 U<RX UHDOO\ GDUH EUHDN P\ KHDUWV

‚mØŁ‚àâ…àâ {Æniߣ‚ŒàŁäî~ß„iØyƒØfl PuQPyOy GL ]…JjP\z S\æo\Ž“WŽ )$0EHFDXVH WKLV ODQJXDJHNLQG VSHDNGDUH1)87 U2QO\ \RX FRXOG KDYH WKH KHDUW WR VD\ VXFK WKLQJV

‚mØŁä…Łiàâ Šî~nØ‚äî~ß„i؁ªŁfl PuQOqJR “…S\L“ P…S\æo\Ž“S8 )$0’,02%- IDXOW 1(*VSHDNGDUH1(* U6LQFH LW LV \RX , GRQVW KDYH WKH KHDUW WR EODPH \RXV

‚àîjæäî‚‚àâ…àâ ‚ä„ßmØŁ„i؁ªŁfl PtEi Q8DQP\HPyOy P…\jXQ\Ž“S8 PRWKHUIDWKHU JDUGHQHDUWKEHFDXVH 1(*VHOOGDUH1(* U, GRQVW KDYH WKH KHDUW WR VHOO VLQFH WKH KRXVH DQG FRPSRXQG DUH IDPLO\ KHULWDJHV

7KH OH[LFDO YHUEVQt UORRN ZDWFKV DQG OHVV FRPPRQO\VjQ ]jQ UWU\ RXW WHVW IHHOV DUH XVHG DV DX[LOLDULHV WR H[SUHVV D WULDO RU DWWHPSW WR GR VRPHWKLQJ /LWHUDOO\ WKH WZR FRQVWUXFWLRQV PHDQ UGR DQG VHH ZKDW KDSSHQVV

‚ƒâæ„mØ mÞçŠä‚çiàâ ä‚ŁïisØçfl P…\RXQ\LQ Ôi “…PpJR PqQt 1(*EHOLHYHLI )$0’(3 PRWKHU’(32%- DVNORRN U,I \RX GRQVW EHOLHYH LW WU\ DVNLQJ P\ PRWKHUV

}sØŁ}sØŁ Š„mØî‚sØŁïisØ炃Øfl QŽ oQŽ o “…\LQ P\uQtPŽ OLWWOHOLWWOH EHIRUH WDVWHORRN)87 U,VOO WU\ WR WDVWH LW D OLWWOH 1UVWV

jx iàâmØïisØ炃Øä}ßØfl N8…Qi NDLQQtPŽ Qæ PRPHQW KROGORRN)87 &63 U&RXOG , WU\ WR KROG LW IRU D VHFRQG"V

‚ä}i â}ØŁoiØïisØç䇣yƒØfl ‚„ªŁfl P…QpJi S8zXQ V8Ž“Qt>qGŽ P…\iE \HVWHUGD\ SKRQH FRQQHFWORRN\HW1)87 1(*JHW1(* U, WULHG FDOOLQJ \HVWHUGD\ %XW , FRXOGQVW UHDFK \RXV

7KH SRVWYHUEDO DX[LOLDU\ïD D KRPRSKRQH ZLWK WKH OH[LFDO YHUEïD UVHHN ORRN IRUV EXW VHPDQWLFDOO\ QRW REYLRXVO\ UHODWHG WR LW H[SUHVVHV HPSDWK\ E\ WKH VSHDNHU WRZDUGV WKH HYHQW RU WKH SDUWLFLSDQWV RI WKH HYHQW GHVFULEHG E\ WKH PDLQ YHUE

yä}‚ìß ŠàâŁiä…Łi ä„z‚ØŁ‡‚ߣiàâ „mغmØç„ìßyƒØfl W…QpKPD “zJ…OqJi \HW8jQ>…PjJR \LQS8ZtQïDGŽ RQHGD\DW SRW’,06%- ZDWHUVHOOHU2%- FKHVWRSHQ(03$7

1)87 U3RRU OLWWOH ZDWHU SRW FRQ1GHG LQ WKH ZDWHU VHOOHUV >LQ D IDEOH@

NQRZOHGJH V\VWHPDWLFDOO\ OHDUQJLYH

(03$71)87 U+H WRRN WKH WURXEOH WR WHDFK DUWV LQ D V\VWHPDWLF PDQQHU WR KLV VWXGHQWVV

ºßŁ‚ài ~sß‚yyØ„ì߁ªŁfl S8ZjPtJi S\LQÑD P…WD“ïDE +SZD0L6%- NQRZOHGJH 1(*DEOH(03$71(* U3RRU +SZD 0L LV QRW HGXFDWHGV

‡ªŠäj‚Œß Š‡iØ‚„ìsØ„ì߁ªŁfl ,~ “…S8HN8…P\D “…,Ž“ P…ïHïDE ’(3 IDWKHUSRRU OLIH 1(*ORQJ(03$71(* U+LV SRRU IDWKHU GLGQVW OLYH ORQJV

7KHUH DUH QR IXOO\ JUDPPDWLFDO PHDQV WR H[SUHVV WKH LGHDV RI UHDV\ WR GRV DQG UGL4FXOW WR GRV 7KH FODXVDO H[SUHVVLRQV 9S8y Ey OZŽ RU 9 S8y Ey N8Ž“ DUH XVHG WR FRQYH\ WKHVH PHDQLQJV 7KH\ DUH PDGH XS IURP WKH VXERUGLQDWRU S8y Ey UIRUV RQ WKH YHUE DQG WKH PDWUL[ FODXVHOZŽGŽ ULWVV HDV\V DQGN8Ž“WŽ ULWVV GL4FXOWV

äoŁ…à~Ønºåð~Æoàâ„mØ îyØàâjiØyƒØ ‚àâ…ߣfl V8qOHL“ VZŽ oEL V8R\LQ S8\D“S8y N8Ž“WŽ Py Oj FLJDUHWWH DGGLFWHG16,7 VD\LI FXWIRU GL4FXOW QRWVR 34 U2QFH \RXVUH DGGLFWHG WR FLJDUHWWHV LWVV QRW HDV\ WR VWRS VPRNLQJ LV LW"V

‡ªäî~ßyåçŠyàâmØŁ …â~Øàâ‚…ºƒØªŁfl ,X S\æoGŽ b “…WjLQ ORX“S8y P…OZŽE VSHDN1)87’(3 DFFRUGLQJ GRIRU 1(*HDV\1(* U,WVV QRW HDV\ WR GR DV KH VD\VV

$Q DOWHUQDWLYH FRQVWUXFWLRQ LV 9\i OZŽ DQG 9\i N8Ž“ OLWHUDOO\ ULW LV HDV\GL4FXOW WR JHW WREH DEOH WR 9V

DVVRFLDWLRQ 2%-

LQYHVWLJDWHJHW GL4FXOWDV EHVWD\ 1)87

U,WVV OLNH LW LV GL4FXOW WR LQYHVWLJDWH WKH VRFLHW\V

VWRQHPRRG DERYH

SHUVRQPRRG VWULNHJHW GL4FXOW1)87

U$ SHUVRQVV PRRG LV KDUGHU WR JXHVV WKDQ WKH PRRG RI D GLDPRQG RU D VWRQHV

7KH QRWLRQ RI OLNLQJ LV H[SUHVVHG SHULSKUDVWLFDOO\ E\ GL3HUHQW FRQVWUXFWLRQV GHSHQGLQJ RQ ZKHWKHU WKH VXEMHFW RU WKH VSHDNHU OLNHV WKH HYHQW RU DFWLYLW\ GHVFULEHG E\ WKH PDLQ YHUE ,I WKH VXEMHFW OLNHV GRLQJ VRPHWKLQJ WKH FRP PRQ IRUP LV 9\i WD GD QDL“UOLNH 9LQJV 7KLV FRQVWUXFWLRQ LV WUDQVSDUHQWO\ PDGH XS IURP WKH QRPLQDOL]HG YHUEDO SUHGLFDWH DQG WKH YHUEQDL“UOLNHV RI ZKLFK WKH QRPLQDOL]HG SUHGLFDWH IXQFWLRQV DV REMHFW ,Q QHJDWHG H[SUHVVLRQV WKH VXERUGLQDWH RU WKH PDWUL[ YHUEQ L“ OLN V LV QHJDWHG GHSHQGLQJ RQ WKH LQWHQGHG PHDQLQJ

‡ªi yiØyªŁzà⣄yßæiàiØyƒØfl ,XJi WŽ“W W8z\iGD QDL“WŽ 6%- WDWWRR EHDWJHW1)8710/ OLNH1)87 U+H OLNHV JHWWLQJ KLPVHOI WDWWRRVV

‡ªi ‚àyØi~ØŠzªæiÆŁ…à‚ØŁ„yß ‚æiài؁ªŁfl ,XJi PHL“ND“ “…W8X8u OqLQ\iGD P…QDL“S8 6%- PDNHXS 10/WKLFNELJ DSSO\JHW

1)8710/ 1(*OLNH1(*

U6KH GRHVQVW OLNH SXWWLQJ RQ KHDY\ PDNHXSV

6%- )$0ZLWK FRPELQH

1)8710/ 1(*OLNH1(*

U0\ PRWKHU GRHVQVW OLNH PH EHLQJ DVVRFLDWHG ZLWK \RXV

ŠmØyß}iØ‚ìß Škü…à~Ønßä…ç…ß„yß æiàiØ…ßŁfl “LQWDQŽ“KPD “LQJ…OHL“VD OpOD\iGD QDL“ Oj LQWHUQHWDW (QJOLVKWH[W VWXG\JHW1)8710/ OLNH 34 U’R \RX OLNH OHDUQLQJ (QJOLVK RQ WKH ,QWHUQHW"V

,I WKH VSHDNHU H[SUHVVHV WKHLU OLNLQJ RU QRW OLNLQJ RI DQ HYHQW WKH FRQVWUXF WLRQV XVHG DUH 9Oy NjXQULW LV JRRG WR 9V RU 9\LQ NjXQULW ZRXOG EH JRRG LI 9V 7KH ODWWHU LV W\SLFDOO\ XVHG ZLWK IXWXUH UHIHUHQFH 7KH VXERUGLQDWH DQG PDWUL[ YHUEV FDQ ERWK EH QHJDWHG LQGHSHQGHQWO\ GHSHQGLQJ RQ WKH PHDQLQJ RI WKH H[SUHVVLRQ

‡ª‡ÆjŒmØŁäyºi Š„‚ØŁ}ߣäzßmØ…àâäißmØŁyƒØfl ,~ ,…Q8uQGZHJi “…\jQ QjW8DXQOy NjXQGŽ ’(3 VRQJ3/6%- YHU\ OLVWHQ68% JRRG1)87 U+LV VRQJV DUH JUHDW WR OLVWHQ WRV

{Ɔyˇ äyßØäyßØyØ…àâäißmØŁyƒØfl GL ZX“W8~ WæGæ S8D“Oy NjXQGŽ WKLV QRYHO TXLWH UHDG68% JRRG1)87 U7KLV QRYHO LV D JRRG UHDGV

{ƈmØŁi nߣ…àâ‚äißmØŁªŁfl GL KuQJi VjOy P…NjXQE WKLV FXUU\6%- HDW68% 1(*JRRG1(* U7KLV GLVK GRHV QRW WDVWH JRRGV

â}ØŁâ}ØŁŠä}}å äî~ß…àâ‚äißmØŁªŁfl S8zXQS8zXQ “…QHQŽ b S\æoOy P…NjXQE PRQN 10/VWD\ZLWK VSHDN68% 1(*JRRG1(* U,W LV QRW P\ SODFH WR VD\ WKDWDQ\WKLQJV >D PRQN VSHDNLQJ@

iä…Łäyºiàâ nÆnØjàâmØŁ„mØäißmØŁ‚…ߣ nØŁnߣä}yƒØfl N8…OqGZHJR VL]LQN8jLQ\LQ NjXQP…Oj VuQ]jQHGŽ FKLOG3/2%- RUJDQL]HRUGHULI JRRG)8734 FRQVLGHUVWD\1)87 U,VP ZRQGHULQJ LI , VKRXOG KDYH WKH FKLOGUHQ RUJDQL]H WKH HYHQWV

ynØìnØiàâ j„ÆŁynØjÞìnØjÞä…ßiØzºiØ„„mØ äißmØŁ‚ƒØfl W…KQL“NR N8…\u W…N8D KQ…N8DODX“ W8ZŽ“\i\LQ NjXQPŽ RQH \HDU2%-

MRXUQH\ RQH WLPH

WZRWLPH DVPXFKDV

H[LWJHWLI JRRG)87

U,W ZRXOG EH JRRG WR WDNH D WULS RQFH RU WZLFH D \HDUV

ZKR ODQJXDJHUHWXUQNHHS 1)87&4

VD\1)87 10/

UHYHDO VKRZJLYHLI

JRRG)87

U,W ZRXOG EH JRRG WR PHQWLRQ E\ ZKRP LW ZDV WUDQVODWHGV

,Q /LWHUDU\ %XUPHVH WKH PDWUL[ YHUQQDL“UOLNHV RUKQL“,Ž“ DUH SODFHG DIWHU D QRPLQDOL]HG YHUE RU D 1QLWH FODXVH XVXDOO\ ZLWK WKH REMHFW FDVH PDUNHU NR JR DGGHG

ŠjŒànâæyºå‚ŒßŁ‡sØ oàâmØj}ØŁ}sØŁ}sØŁ ä‚ìßm؇sØiàâ æiàiØïi‡fl “…Q8y VRXQGZŽ o

VRPH FRXSOH3/ 6%-

VKRSURRP OLWWOH OLWWOH

GDUN 1)872%-

OLNH3/ 1)87

U&HUWDLQ FRXSOHV OLNH LW WKDW WKH OLJKW LQ WKH UHVWDXUDQW URRPV DUH D OLWWOH GLPPHGV

…ªmƒØyàâ‡sØ ‡ªyàâiàâ o„ß…â~؇sØiàâ ‚æiàiØïiäjŒfl OXÔŽGy>L ,XGy

\RXQJSHRSOH $663/6%-

$663/ 2%-

WHDFKHU GR 1)87 2%-

1(*OLNH3/ (83+

U<RXQJ SHRSOH GR QRW OLNH EHLQJ WROG ZKDW WR GR DV LI \RX ZHUH WKHLU WHDFKHUV

JLUO TXLWH PXFK PXFK6%-

KDQG QDLO

ORQJNHHSJHW 10/2%-

OLNH1)87

U4XLWH D IHZ JLUOV OLNH NHHSLQJ ORQJ 1QJHUQDLOVV