Page 10

1. %($&21 ±± 1RYHPEHU
1RYHPEHU ,Q WKLV LVVXH
7(55(; ¶ WHVWV KD]DUGRXV PDWHULDOV LQFLGHQW
*RYHUQRU +HLQHPDQ GHFODUHV GLVDVWHU
1(0$ HPSORHHV KRQRUHG
.UDPHU FRPSOHWHV WUDLQLQJ FRXUVH
*UDQWV VWDII DWWHQGV IHGHUDO JUDQWV FRXUVH
9ROXQWHHU DVVLVWV 3ODWWH RXQW
)(0$ JUDQWV WRS PLOOLRQ IRU 1HEUDVND UHOLHI
0RGHO FLW H[HUFLVH KHOG LQ /LQFROQ
RYHU HDUQV HPHUJHQF PDQDJHPHQW FHUWLÀFDWLRQ
'DNRWD RXQW KRVWV ,6
1:,1 125 KROG PHHWLQJV
3DJH

2. %($21 ±± 1RYHPEHU
7(55(; µ IRFXVHV RQ KD]DUGRXV PDWHULDOV LQFLGHQW
7KLV HDU·V VWDWH WHUURULVP H[HU
FLVH 7(55(; · WHVWHG LQWHURSHU
DEOH FRPPXQLFDWLRQV IRXU RI WKH
VWDWH·V +$=0$7 WHDPV WKH 6WDWH
(PHUJHQF 2SHUDWLRQV HQWHU
6(2

3. DQG WKH -RLQW ,QIRUPDWLRQ
HQWHU -,

4. RQ 1RY DQG
LQ /LQFROQ 6FRWWVEOXII DQG *UDQG
,VODQG
6SRQVRUHG E 1HEUDVND (PHU
JHQF 0DQDJHPHQW $JHQF 7(5
5(; · LV WKH VWDWH·V DQQXDO
H[HUFLVH RI HPHUJHQF UHVSRQVH
SODQV SROLFLHV DQG SURFHGXUHV DV
WKH SHUWDLQ WR D WHUURULVW LQFLGHQW
,W WHVWHG WKH VWDWH·V UHVSRQVH WR D
KD]DUGRXV PDWHULDOV HYHQW DV ZHOO
DV FRPPXQLFDWLRQV EHWZHHQ 1(0$
DQG WKH YDULRXV SDUWLFLSDWLQJ ORFDO
MXULVGLFWLRQV
,W ZDV WKH ÀUVW 7(55(; WKDW LQ
YROYHG ERWK ORFDO MXULVGLFWLRQV DQG
VWDWH DJHQFLHV VDLG +HQU 7DPDVL $O %HUQGW DVVLVWDQW GLUHFWRU IRU 1(0$ FRQGXFWV D EULH¿QJ IRU 7(55(; µ LQ WKH 6WDWH
H[HUFLVH DQG WUDLQLQJ VXSHUYLVRU IRU (PHUJHQF 2SHUDWLRQV HQWHU
1(0$
´6WDWH DJHQFLHV FDPH WRJHWKHU SXWWLQJ WKH H[HUFLVH WRJHWKHU LQ D FRPPXQLFDWLRQV LQWHURSHUDELOLW
DQG LGHQWLÀHG QHHGV DQG PLWLJDWHG VKRUWHQHG WLPH IUDPH WKLV HDU PDQDJHPHQW VVWHP
QHHGV DQG GLG D JRRG MRE RI UHVROY 7(55(; · KHOSHG 1(0$ DQG ([HUFLVH SDUWLFLSDQWV IURP WKH
LQJ WKH LQFLGHQWµ 7DPDVL VDLG WKH ORFDO MXULVGLFWLRQV WHVW KRZ GLI 5HG :LOORZ 5XUDO +DVWLQJV DQG
7DPDVL FRPPHQGHG 7RQD IHUHQW UDGLR VVWHPV FRPPXQLFDWH *UDQG ,VODQG ÀUH GHSDUWPHQWV
1JRWHO RI 1(0$ IRU KHU ZRUN RQ ZLWK HDFK RWKHU YLD 3DUDFOHWH D RQWLQXHG RQ 3DJH
([HUFLVH 7UDLQLQJ 2I¿FHU $DURQ $OZDUG LQ UHG

5. WDONV ZLWK /W *RY 3ODHUV SDUWLFLSDWH LQ D ³KRWZDVK´ RU DIWHUDFWLRQ GLVFXVVLRQ
5LFN 6KHHK LQ WKH VLPXODWLRQ FHOO $OVR SLFWXUHG IURP OHIW DUH IROORZLQJ WKH H[HUFLVH LQ WKH 6FRWWV %OXII (2 3LFWXUHG IURP OHIW
+HQU 7DPDVL 1(0$ UDLJ )LVKHU DQG -DNH DUUHO RI %HDWULFH DUH DSW %ULDQ :DVVRQ 6FRWWVEOXII 3ROLFH 'HSDUWPHQW DSW
)LUH 'HSDUWPHQW -RQ 5RVHQOXQG RI *UDQG ,VODQG+DOO RXQW -DPLH :DOODFH DQG )LUH KLHI 'DQD 0LOOHU 6FRWWVEOXII )LUH 'HSDUW
(PHUJHQF 0DQDJHPHQW DQG 5RQ (ULFNVRQ RI WKH /LQFROQ/DQ PHQW 0DRU 5DQG 0HLQLQJHU 5LFN .XFNNDKQ FLW PDQDJHU DQG
FDVWHU RXQW +HDOWK 'HSDUWPHQW %LOO :LQHPDQ 6FRWWV %OXII RXQW +HDOWK 'HSDUWPHQW
2Q WKH RYHU
7RP 'DQOHU VHFRQG IURP OHIW

6. RI ,QWHURS 6ROXWLRQV JLYHV D GHPRQVWUDWLRQ RI 3DUDFOHWH D QHZ FRPPXQLFDWLRQ WRRO IRU 1HEUDVND
ZKLFK DOORZV ORFDO MXULVGLFWLRQV WR FRPPXQLFDWH ZLWK RQH DQRWKHU RQ GLIIHUHQW UDGLR IUHTXHQFLHV GXULQJ DQ HYHQW RU GLVDVWHU )URP
OHIW 1HEUDVND /W *RY 5LFN 6KHHK -RH %RG RI )(0$ $O %HUQGW RI 1(0$ -RKQ )DOJLRQH 6WDWH )LUH 0DUVKDO DQG %RE (DVWZRRG RI
1(0$ ZDWFK DV 'DQOHU VKRZV KRZ 3DUDFOHWH DOORZV 1(0$ WR PRQLWRU FRPPXQLFDWLRQ LQ ORFDO MXULVGLFWLRQV
3DJH

7. %($21 ±± 1RYHPEHU
7(55(; FRQWLQXHG IURP 3DJH
DQG FRXQW HPHUJHQF PDQDJHUV
LQ 6FRWWV %OXII +DOO DQG $GDPV
FRXQWLHV FRQQHFWHG UDGLR VVWHPV
WKDW QRUPDOO ZRXOG QRW EH DEOH WR
FRPPXQLFDWH ZLWK RQH DQRWKHU VDLG
%RE (DVWZRRG RI 1(0$ 3DUDFOHWH
JLYHV HPHUJHQF RSHUDWLRQ FHQWHUV
SROLFH ÀUH ÀJKWHUV DQG HPHUJHQF
PHGLFDO VVWHP VWDII LQ GLIIHUHQW
MXULVGLFWLRQV WKH DELOLW WR FRPPX
QLFDWH ZLWK RQH DQRWKHU XVLQJ WKHLU
RZQ FRPPXQLFDWLRQ VVWHPV
´1(0$ UHFRJQL]HV LWV UHVSRQVL
ELOLW WR SURWHFW WKH SXEOLF IURP
DQG PLWLJDWH WKH FRQVHTXHQFHV RI
WKH KD]DUGV DVVRFLDWHG ZLWK DFWV RI
WHUURULVPµ VDLG $O %HUQGW DVVLV
WDQW GLUHFWRU RI 1(0$ ´7KH OHYHO RI
FRPPLWPHQW WKDW 1HEUDVND·V VWDWH
DJHQFLHV DQG ORFDO UHVSRQGHUV EULQJ
WR D +RPHODQG 6HFXULW H[HUFLVH DQG
HPHUJHQF UHVSRQVH GHPRQVWUDWH
WKHLU GHGLFDWLRQ WR UHDGLQHVV :H
DUH WUXO DKHDG RI WKH FXUYH DQG ZH
WUDLQ KDUG WR UHPDLQ SUHSDUHGµ ([HUFLVH GLUHFWRU 7RQD 1JRWHO EULHI SODHUV DW WKH 6WDWH (PHUJHQF 2SHUDWLRQV HQWHU
/W *RY 5LFN 6KHHK 1HEUDV
ND·V GLUHFWRU RI KRPHODQG VHFXULW 7(55(; · LQYROYHG VL[ VWDWH 0DUVKDO·V 2IÀFH WKH 'HSDUWPHQW
OHDG WKH H[HFXWLYH JURXS UHVSRQ DJHQFLHV DQG IRXU ORFDO MXULVGLF RI (QYLURQPHQWDO 4XDOLW DQG WKH
VLEOH IRU SROLF GHFLVLRQV GXULQJ WKH WLRQV 1HEUDVND 6WDWH 3DWURO
H[HUFLVH 3DUWLFLSDQWV DW WKH 6WDWH (PHU 7KH -RLQW ,QIRUPDWLRQ HQWHU
´:KHQ D VLWXDWLRQ GRHV KDSSHQHG JHQF 2SHUDWLRQV HQWHU LQFOXGHG RSHQHG DW 1(7 ZLWK 3XEOLF ,QIRU
ZH·YH DOUHDG WKRXJKW RI WKH WKLQJV UHSUHVHQWDWLYHV IURP WKH 'HSDUW PDWLRQ 2IÀFHUV IURP 1(0$ WKH
ZH VKRXOG IRFXV RQµ 6KHHK VDLG PHQW RI 5RDGV WKH 6WDWH )LUH RQWLQXHG RQ 3DJH
6WDWH 3XEOLF ,QIRUPDWLRQ 2I¿FHUV HVWDEOLVKHG WKH -RLQW -RGLH )DZO RI 1(0$ VHUYHV 3,2V 0LNH :LJKW RI WKH 'HSDUWPHQW RI
,QIRUPDWLRQ HQWHU DW 1(7 IRU 7(55(; µ 5D 1DQFH RI DV OHDG 3,2 DW WKH -, )DZO +HDOWK DQG +XPDQ 6HUYLFHV DQG =DFN
WKH 6WDWH )LUH 0DUVKDO¶V RI¿FH XSGDWHV WKH ORJ ZRUNHG FORVHO ZLWK 'HE RO %URVKHDUV RI WKH 'HSDUWPHQW RI 5RDGV
OLQV ZKR ZDV WKH -, OLDLVRQ DW ZRUN RQ D QHZV UHOHDVH 7KH DOVR
WKH 6WDWH (PHUJHQF 2SHUD DQVZHUHG PHGLD TXHVWLRQV DQG EHJDQ
WLRQV HQWHU SODQQLQJ D QHZV FRQIHUHQFH
3DJH

8. %($21 ±± 1RYHPEHU
7(55(; FRQWLQXHG IURP 3DJH
'HSDUWPHQW RI +HDOWK DQG +X
PDQ 6HUYLFHV 7KH 6WDWH )LUH 0DU
VKDO·V 2IÀFH DQG WKH 'HSDUWPHQW
RI 5RDGV -, VWDII FRRUGLQDWHG WKH
UHOHDVH RI LQIRUPDWLRQ WR WKH PHGLD
DQG WKH SXEOLF
-HUU %UHWWKDXHU 5HJLRQ
HPHUJHQF PDQDJHU UHSRUWV WKDW
7(55(; ¶ DOORZHG WKH 5HG :LOORZ
5XUDO DQG 6FRWWVEOXII KD]DUGRXV
PDWHULDOV WHDPV WR ZRUN WRJHWKHU DV
6WDWH (PHUJHQF 5HVSRQVH 7HDP
6(57

9. ZLWK FRRUGLQDWLRQ IURP WKH
6(2
,W DOVR JDYH WZR QHZO WUDLQHG
(2 PDQDJHUV LQ 6FRWWV %OXII
RXQW WKH RSSRUWXQLW WR ZRUN
WKURXJK UXQQLQJ WKH (2 KH VDLG
´7KH OHDUQHG D ORW E UHDOL]LQJ +DO %DVVHW RI ,QWHURS 6ROXWLRQV GLVFXVVHV 3DUDFOHWH ZLWK 6FRWWVEOXII )LUH KLHI 'DQD 0LOOHU
DQG DSWDLQ -DPLH :DOODFH
WKH QHHGV RI WKH (2 DQG DVNLQJ
TXHVWLRQVµ %UHWWKDXHU VDLG ´,Q
DGGLWLRQ HOHFWHG DQG DSSRLQWHG RI
ÀFLDOV EHFDPH PRUH DZDUH RI ZKDW
WKH (2 QHHGV WR IXQFWLRQµ
6FRWWV %OXII RXQW LV EXLOG
LQJ D QHZ (2 WR EH FRPSOHWHG LQ
)HEUXDU

10. DQG %UHWWKDXHU VDLG WKH
H[HUFLVH VKRZHG RIÀFLDOV ZK KH UH
TXHVWHG WKH HTXLSPHQW KH UHTXHVW
´7KH JRW WR VHH WKH ,QFLGHQW
RPPDQG 6VWHP LQ RSHUDWLRQ DQG
UHDOL]HG WKHUH LV D VSHFLDO QHHG IRU
(2,6 ,QWHUIDFHµ
2Q )ULGD 1RY 7(55(; ¶ 0DUN 5REHUWVRQ RI WKH 1HEUDVND
FRQFOXGHG LQ *UDQG ,VODQG ZLWK D 2I¿FH RI WKH KLHI 2SHUDWLQJ 2I¿FHU
UDLOFDU DQG WUDFWRU WUDLOHU LQFLGHQW JHWV D WLS IURP H[HUFLVH VDIHW RI¿FHU 6FRWWV %OXII (PHUJHQF 0DQDJHU -HUU %UHWWKDXHU
WKDW WHVWHG WKH UHVSRQVH RI WZR RI %RE :LOKHOP DQG FRQWUROOHU 7DFLH +DZNLQV IURP KHUU RXQW
WKH VWDWH·V KD]PDW WHDPV
´7KLV 7(55(; H[HUFLVH ZDV
D ZRQGHUIXO RSSRUWXQLW WR WHVW
RXU SURFHGXUHV GHFLVLRQ PDNLQJ
DQG HTXLSPHQW ZLWK UHJDUG WR D
VLJQLÀFDQW DQG UDWKHU SODXVLEOH
VFHQDULR RI GRPHVWLF WHUURULVPµ
VDLG -RQ 5RVHQOXQG HPHUJHQF
PDQDJHPHQW GLUHFWRU IRU WKH FLW
RI *UDQG ,VODQG+DOO RXQW ´:H
IRXQG JUHDW LPSURYHPHQWV LQ D
QXPEHU RI RXU REMHFWLYHV DQG ZHUH
SOHDVHG ZLWK WKH HQWLUH H[HUFLVH
2XU WKDQNV JR RXW WR 7RQD 1JRWHO
$DURQ $OZDUG DQG DOO WKH SODQ
QLQJ WHDP PHPEHUV IRU D YHU JRRG
H[HUFLVHµ
UDLJ )LVKHU DQG -DNH DUUHO RI %HDWULFH )LUH 'HSDUWPHQW DQG 5RQ (ULFNVRQ RI WKH
/LQFROQ/DQFDVWHU RXQW +HDOWK 'HSDUWPHQW ZRUN LQ WKH VLPXODWLRQ FHOO DW 1(0$
3DJH

11. %($21 ±± 1RYHPEHU
*UDQG
,VODQG
H[HUFLVH
7(55(; µ
SODHUV LQ *UDQG
,VODQG VKXW RII D
OHDN DIWHU XVLQJ
IRDP RQ D VXV
SHFWHG HWKDQRO
¿UH GXULQJ WKH
H[HUFLVH +D]PDW
WHDPV SUHSDUH WR
LQVSHFW D UDLO FDU
ZLWK D SRVVLEOH
OHDN ([HUFLVH
SDUWLFLSDQWV DV
VHVV WKH VLWXDWLRQ
WR GHWHUPLQH WKH
PLWLJDWLRQ QHFHV
VDU WR FRQWDLQ D
SRVVLEOH OHDN RI
KD]DUGRXV PDWH
ULDO 7KH VFHQDULR
LQYROYHG D VWROHQ
WUDFWRU WUDLOHU
LQWHQWLRQDOO
DEDQGRQHG RQ D
UDLOURDG WUDFN
3DJH

12. %($21 ±± 1RYHPEHU
*RYHUQRU VLJQV GLVDVWHU GHFODUDWLRQ WR KHOS ZLWK VWRUP UHFRYHU
*RY 'DYH DQG KHDY ZHW VQRZ LQ *DJH -HI WHUP SURFHVV IRU WKHVH FRXQWLHV :H
+HLQHPDQ IHUVRQ 1HPDKD 3DZQHH 5LFKDUG ZLOO ZRUN FORVHO ZLWK ORFDO DJHQFLHV
VLJQHG D VWDWH VRQ DQG 7KDHU RXQWLHV 3UHOLPL WR KHOS PRYH WKH UHFRYHU DORQJµ
GLVDVWHU GHFOD QDU GDPDJH HVWLPDWHV IURP WKH $ GLVDVWHU GHFODUDWLRQ PDNHV
UDWLRQ 1RY 1HEUDVND (PHUJHQF 0DQDJHPHQW VWDWH UHVRXUFHV DYDLODEOH WR KHOS
WR DVVLVW LQ WKH $JHQF 1(0$

13. WRWDO PRUH WKDQ ZLWK UHFRYHU LQ VWRUP GDPDJHG
UHFRYHU SURFHVV PLOOLRQ DUHDV 1(0$ RIÀFLDOV FRQWLQXH WR
IROORZLQJ VLJ 1(0$ $VVLVWDQW 'LUHFWRU $O %HU ZRUN ZLWK ORFDO DQG FRXQW HPHU
QLÀFDQW SXEOLF QGW VDLG ´+LJK ZLQGV DQG KHDY JHQF PDQDJHUV WR DVVHVV WKH
GDPDJHV FDXVHG VQRZ FDXVHG SRZHU OLQHV WR IDOO DQG VFRSH RI GDPDJH DQG ZLOO FRRUGL
*RY 'DYH +HLQHPDQ QDWH ZLWK WKH )HGHUDO (PHUJHQF
E WKH VHYHUH SRZHU SROHV WR EUHDN DORQJ ZLWK
ZLQWHU VWRUP WKDW VWUXFN VRXWKHDVW VLJQLÀFDQW GDPDJH WR DUHD URDGV 0DQDJHPHQW $JHQF WR GHWHUPLQH
1HEUDVND HDUO 1RY DQG WUHHV 7KH H[WHQW RI WKH GDPDJH ZKHWKHU WKUHVKROGV IRU IHGHUDO DV
7KH VWRUP SURGXFHG KLJK ZLQGV PHDQV WKLV ZLOO OLNHO EH D ORQJ VLVWDQFH KDYH EHHQ PHW
1HEUDVND (PHUJHQF 0DQDJHPHQW $JHQF
HPSORHHV UHFRJQL]HG
$GMXWDQW *HQHUDO -XGG /RQV UHFRJQL]HG 1(0$ HPSORHHV LQ D FHUHPRQH 2FW 5HFRJ
QL]HG IURP OHIW ZHUH 'DQ +LOOHU 6KHLOD +DVFDOO 0DUGHO +HUJHQUDGHU -DFNLH 0DO DQG $P
6WURK +LOOHU +HUJHQUDGHU DQG 0DO ZHUH UHFRJQL]HG IRU HDUV RI VHUYLFH ZKLOH 6WRK ZDV
KRQRUHG IRU HDUV RI VHUYLFH 6WURK ZDV DOVR UHFRJQL]HG E *RY 'DYH +HLQHPDQ ULJKW

14. DW
WKH 6WDWH DSLWRO +DVFDOO ZDV UHFRJQL]HG DV UXQQHUXS LQ 7KH DGMXWDQW JHQHUDO¶V HPSORHH
RI WKH HDU UHFRJQLWLRQ
3DJH

15. %($21 ±± 1RYHPEHU
0RUJDQ .UDPHU
FRPSOHWHV 1(0$ JUDQWV DQG SODQQLQJ VWDII
WUDLQLQJ FRXUVH FRPSOHWH IHGHUDO JUDQWV FRXUVH
0RUJDQ .UDPHU D UDGLRORJLFDO 7KUHH 1(0$ *UDQWV DQG 3ODQ JUDQWV PDQDJHPHQW LVVXHV
HPHUJHQF SODQQHU IRU 1(0$ FRP QLQJ VWDII PHPEHUV DWWHQGHG D FKDQJHV LQ EXGJHW DQG VFRSH
SOHWHG +RPHODQG 6HFXULW WUDLQLQJ 0DQDJLQJ )HGHUDO *UDQWV DQG VXEUHFLSLHQWV FRQWUDFWRUV DQG
DW WKH HQWHU IRU 'RPHVWLF 3UH RRSHUDWLYH $JUHHPHQWV IRU 5H EHQHÀFLDULHV LQWHUDFWLQJ ZLWK
SDUHGQHVV '3

16. LQ $QQLVWRQ $OD FLSLHQWV PDQDJHPHQW FRQFHSWV WKH DZDUGLQJ DJHQF HQG RI
1RY FRXUVH LQ 3KRHQL[ 2FW WKH JUDQW LVVXHV DQG LPSURY
RPSOHWLRQ 0DUGHOO +HUJHQUDGHU JUDQWV LQJ PDQDJHPHQW RI VXEVHTXHQW
RI WKH 5DGLR DQG SODQQLQJ SURJUDP PDQDJHU JUDQWV
ORJLFDO 7UDLQ 1LNNL :HEHU JUDQW SURJUDP 7KH FRXUVH PHW WKH IROORZLQJ
WKH7UDLQHU VSHFLDOLVW DQG %RE :LOKHOP REMHFWLYHV
FRXUVH TXDOL SURJUDP VSHFLDOLVW DWWHQGHG WKH
'HWHUPLQH DSSOLFDEOH VWDWX
ÀHV .UDPHU FRXUVH
WRU DQG UHJXODWRU DX
WR WHDFK WKH ´3HUKDSV WKLV LV RQH RI WKH
WKRULWLHV DQG GLVFXVV WKHLU
)XQGDPHQ EHVW WUDLQLQJ VHVVLRQV , KDYH
LPSDFW RQ JUDQWV DGPLQLV
WDOV RXUVH DWWHQGHGµ :LOKHOP VDLG ´7KLV
WUDWLRQ
IRU 5DGLRORJL FRXUVH ZDV YHU HGXFDWLRQDO DQG
FDO 5HVSRQVH LOOXPLQDWLQJ RI WKH JUDQW SUR ([DPLQH YDOXDWLRQ RI FRVW
+RVSLWDO FHVVµ VKDULQJ FRQWULEXWLRQV
.UDPHU
(PHUJHQF 'H 7KLV WKUHH GD FRXUVH SURYLGHV
'LVFXVV QHZ JRYHUQPHQW
SDUWPHQW 0DQDJHPHQW RI 5DGLDWLRQ VWXGHQWV D ZRUNLQJ NQRZOHGJH
ZLGH ÀQDQFLDO DQG SURJUHVV
$FFLGHQWV DQG 0RGXODU (PHUJHQF RI LVVXHV WKDW DIIHFW GDWRGD
UHSRUWLQJ IRUPV
5HVSRQVH 5DGLRORJLFDO 7UDQVSRUWD RSHUDWLRQV DQG PDQDJHPHQW RI
WLRQ 7UDLQLQJ IHGHUDO JUDQWV (YDOXDWH SURSRVHG FKDQJHV
7KH '3 LV RSHUDWHG E WKH 8QLW ,W ZDV GHVLJQHG IRU UHFLSLHQW LQ EXGJHW DQG VFRSH WR
HG 6WDWHV 'HSDUWPHQW RI +RPH DQG SDVVWKURXJK HQWLW SHUVRQ GHWHUPLQH ZKHWKHU SULRU
ODQG 6HFXULW·V )HGHUDO (PHUJHQF QHO UHVSRQVLEOH IRU JUDQW SURMHFW DSSURYDO E WKH DZDUGLQJ
0DQDJHPHQW $JHQF DQG LV WKH DGPLQLVWUDWLRQ DQG GHFLVLRQ DJHQF LV UHTXLUHG
RQO IHGHUDOOFKDUWHUHG :HDSRQV PDNLQJ DV ZHOO DV WKRVH LQGLYLG ([SORUH KRZ DJHQFLHV DQG
RI 0DVV 'HVWUXFWLRQ :0'

17. WUDLQ XDOV UHVSRQVLEOH IRU GHYHORSLQJ DXGLWRUV UHYLHZ LQWHUQDO
LQJ IDFLOLW LQ WKH QDWLRQ DQG LPSOHPHQWLQJ LQVWLWXWLRQDO FRQWUROV WKURXJK VLWH YLVLWV
7KH '3 SURYLGHV IHGHUDOO SROLFLHV
IXQGHG LQWHUGLVFLSOLQDU WUDLQLQJ $FFRUGLQJ WR :HEHU PDMRU $SSO NQRZOHGJH JDLQHG LQ
IRU HPHUJHQF UHVSRQGHUV IURP WRSLFV RI WKH FRXUVH LQFOXGHG WKH FRXUVH LQ D VLPXODWHG
DFURVV WKH 8QLWHG 6WDWHV DQG 86 QRWLFHV RI JUDQW DZDUG GHYHORS QHJRWLDWLRQ ZLWK DJHQF
7HUULWRULHV IRU UHVSRQGHU GLV LQJ D SURMHFW PDQDJHPHQW SODQ SHUVRQQHO RYHU JUDQW WHUPV
FLSOLQHV HPHUJHQF PDQDJHPHQW SURMHFW SHUIRUPDQFH DQG RWKHU DQG FRQGLWLRQV
HPHUJHQF PHGLFDO VHUYLFH ÀUH VHU
YLFH JRYHUQPHQWDO DGPLQLVWUDWLYH
KD]DUGRXV PDWHULDOV KHDOWK FDUH
ODZ HQIRUFHPHQW SXEOLF KHDOWK
SXEOLF VDIHW FRPPLQDWLRQ DQG
SXEOLF ZRUNV
5HVSRQGHUV DWWHQGLQJ '3 WUDLQ
LQJ DUH VHOHFWHG IURP WKH QDWLRQV·
PLOOLRQ HPHUJHQF UHVSRQGHUV
7UDLQLQJ DW WKH '3 HQVXUHV WKDW
UHVSRQGHUV JDLQ FULWLFDO VNLOOV DQG
FRQÀGHQFH WR EH EHWWHU SUHSDUHG WR
HIIHFWLYHO UHVSRQG WR ORFDO LQFL +HUJHQUDGHU :HEHU :LOKHOP
GHQWV RU SRWHQWLDO :0' LQFLGHQWV
.UDPHU MRLQHG 1(0$ LQ -XO
3DJH

18. %($21 ±± 1RYHPEHU
9,67$ KHOSV RXW LQ 3ODWWH RXQW
3ODWWH RXQW (PHUJHQF 0DQ 'LVDVWHU
1HZV
DJHPHQW KDV EHQHÀWHG IURP WKH DG
GLWLRQ RI D 9ROXQWHHUV LQ 6HUYLFH WR
$PHULFDQ 9ROXQWHHU 9,67$

19. GXULQJ
PXFK RI
.DWK 7KRUSH EHJDQ KHU HDU
RI VHUYLFH DV D 9,67$ LQ )HEUXDU )(0$ JUDQWV
DIWHU FRPSOHWLQJ SUHVHUYLFH WUDLQ
LQJ LQ %RVWRQ WRS PLOOLRQ IRU
´+HUH LQ ROXPEXV , DP D SDUW
RI WKH 1HEUDVND 7KULYHV $PHUL 1HEUDVND UHOLHI
RUSV9LVWD 3URJUDP ZKLFK H[LVWV 6WDWH DQG IHGHUDO RIÀFLDOV
WR H[SDQG WKH FDSDFLW RI 1HEUDV DQQRXQFHG WKDW PRUH WKDQ
NDQV DQG WR LQFUHDVH WKHLU TXDO PLOOLRQ LQ 3XEOLF $VVLVWDQFH
LW RI OLIH E PD[LPL]LQJ FLWL]HQ 3$

20. JUDQWV ZHUH DZDUGHG WR WKH
LQYROYHPHQW LQ GLVDVWHU SUHSDUHG VWDWH RI 1HEUDVND E WKH )HG
QHVV DQG FRPPXQLW VHUYLFH QHHGV HUDO (PHUJHQF 0DQDJHPHQW
DQG WR LQFUHDVH WKH HIIHFWLYHQHVV RI $JHQF 7KLV DVVLVWDQFH ZLOO
HQWLWLHV DGGUHVVLQJ WKHVH QHHGVµ KHOS FRXQWLHV UHFRYHU IURP D
7KRUSH VDLG VHULHV RI ZHDWKHU UHODWHG HYHQWV
.DWK 7KRUSH
+HU 9,67$ DVVLJQPHQW DV D SDUW 1HEUDVND UHTXHVWHG DQG
RI 1HEUDVND 7KULYHV LV VKDUHG EH UHFHLYHG D SUHVLGHQWLDO GLVDV
WZHHQ ROXPEXV $UHD 8QLWHG :D 9,67$ ZRUNHU +RIEDXHU VDLG ´7KH WHU GHFODUDWLRQ IROORZLQJ VHYHUH
RQQHFW ROXPEXV 9ROXQWHHU HQ FRQQHFWLRQ DQG WLHV WKDW .DWK KDV VWRUPV ÁRRGLQJ DQG WRUQDGRV
WHU DQG 3ODWWH RXQW (PHUJHQF FUHDWHG KDV EHHQ LQYDOXDEOH WR XVµ WKDW LPSDFWHG WKH VWDWH -XQH
0DQDJHPHQW $PHULRUSV 9,67$ LV D QDWLRQDO WR -XQH
ROXPEXV?3ODWWH RXQW (PHU VHUYLFH SURJUDP GHVLJQHG WR ÀJKW 3XEOLF $VVLVWDQFH JUDQWV
JHQF 0DQDJHPHQW 'LUHFWRU 7LP SRYHUW ,W ZDV IRXQGHG LQ DYDLODEOH WKURXJK )(0$ SUR
+RIEDXHU VDLG WKH VKDUHG DVVLJQ DQG LQFRUSRUDWHG LQWR WKH $PHUL YLGH UHLPEXUVHPHQW IRU GHEULV
PHQW KDV EHQHÀWHG KLV RIÀFH RUSV QHWZRUN LQ UHPRYDO HPHUJHQF SURWHFWLYH
:KHQ FRQWDFWHG E 6HUYH1HEUDV 7KRUSH ZRUNHG ZLWK WKH (DVW PHDVXUHV DQG WKH UHSDLU UH
ND WR VHH LI KLV RIÀFH ZDV LQWHUHVWHG HQWUDO 'LVWULFW +HDOWK 'HSDUW SODFHPHQW RU UHVWRUDWLRQ RI GL
LQ WKH 9,67$ SURJUDP +RIEDXHU PHQW 5HG URVV DQG 3ODWWH RXQW VDVWHUGDPDJHG SXEOLFO RZQHG
ZDVQ·W VXUH KH KDG HQRXJK ZRUN (PHUJHQF 0DQDJHPHQW WR SUHVHQW IDFLOLWLHV VXFK DV URDGV EULGJHV
IRU D 9,67$ EXW DIWHU WDONLQJ WR D 6SHFLDO 1HHGV (PHUJHQF 3UH ZDWHU FRQWURO IDFLOLWLHV SXEOLF
WKH LWL]HQ RUS RXQFLO DQG WKH SDUHGQHVV 6PSRVLXP LQ 0D WR EXLOGLQJV DQG HTXLSPHQW XWLOL
8QLWHG :D LQ ROXPEXV WKH GH DGGUHVV WKH QHHGV RI SHRSOH ZLWK WLHV DQG SDUNV DQG UHFUHDWLRQDO
FLGHG WR UHDFK RXW WR WKH DUHD·V QRQ GLVDELOLWLHV WKHLU FDUHJLYHUV DQG IDFLOLWLHV HUWDLQ SULYDWH QRQ
(QJOLVK VSHDNLQJ SRSXODWLRQ RQ SHUVRQV ZLWK D ODQJXDJH EDUULHU SURÀW 313

21. RUJDQL]DWLRQV WKDW
SUHSDUHGQHVV 7KLV VPSRVLXP ZDV GHVLJQHG WR SURYLGH DQ HVVHQWLDO SXEOLF VHU
´2QH RI WKH LVVXHV ZH KDYH LQ KHOS WKLV SRSXODWLRQ WR EH EHWWHU YLFH PD DOVR EH HOLJLEOH 7KH 3$
3ODWWH DQG ROID[ RXQW LV D ODUJH SUHSDUHG LQ FDVH RI GLVDVWHU VXFK SURJUDP DOVR SURYLGHV PRQH
QRQ(QJOLVK VSHDNLQJ SRSXODWLRQ DV WRUQDGRV ÁRRGLQJ DQG SDQGHP IRU FHUWDLQ KD]DUG PLWLJDWLRQ
DQG SDVVLQJ SUHSDUHGQHVV LQIRUPD LFV PHDVXUHV WR SURWHFW IDFLOLWLHV
WLRQ RQ WR WKHP KDV EHHQ RQH RI WKH ´%HLQJ D 9,67$ LV DOO DERXW LP IURP IXWXUH GLVDVWHUV
ZRUNHUV SURMHFWV +RIEDXHU VDLG PHUVLQJ RXUVHOI IRU RQH HDU LQ (OLJLEOH 3$ DSSOLFDQWV UHFHLYH
´:H IRXQG RXW WKDW D ORW RI WKH RXU DVVLJQPHQW DQG PDNLQJ WKDW SHUFHQW RI WKHLU DOORZDEOH
QRQ(QJOLVK VSHDNLQJ FRPPXQLW HDU RI VHUYLFH FRXQWµ 7KRUSH VDLG FRVWV IRU WKHLU SURMHFWV IURP WKH
GLGQ·W NQRZ WKH PHDQLQJ RI WRU ´,W·V DOO DERXW ZRUNLQJ WR SURYLGH IHGHUDO JRYHUQPHQW 7KH VWDWH
QDGR VLUHQVµ ORQJWHUP VROXWLRQV WR SRYHUW 0 SDV SHUFHQW RI WKH SURMHFW
7KRUS·V DGGLWLRQ WR KLV RIÀFH JRDO LV WR IXUWKHU HQKDQFH WKH HI FRVW DQG WKH DSSOLQJ RUJDQL]D
KDV EHHQ DQG DGYDQWDJH EHFDXVH IRUWV RI WKHVH RUJDQL]DWLRQV DQG WR WLRQ SDV WKH UHPDLQLQJ
LW LPSURYHG FRPPXQLFDWLRQ DERXW LQFUHDVH WKH TXDOLW RI OLIH LQ WKH SHUFHQW
SUHSDUHGQHVV WKDW WKH ZRXOG QRW ROXPEXV DUHD IRU ORZLQFRPH DQG
KDYH EHHQ DEOH WR GR ZLWK RXW D RWKHU PDUJLQDOL]HG SRSXODWLRQVµ
3DJH

22. %($21 ±± 1RYHPEHU
)LUVW UHVSRQGHUV
SDUWLFLSDWH LQ
PRGHO FLW H[HUFLVH
/LQFROQ )LUH 'HSDUWPHQW FDOO FHQWHU
GLVSDWFKHUV 6WDWH 3DWURO UHSUHVHQWDWLYHV
HPHUJHQF PDQDJHUV DQG 1(0$ UHSUH
VHQWDWLYHV DVVHVV DQG GHWHUPLQH DFWLRQV
WKDW ZLOO EH WDNHQ WR FRQWDLQ DQG FRQWURO
WKH VFHQH RI D SRVVLEOH WHUURULVW LQFLGHQW
RQ /LQFROQ¶V (DVW DPSXV LQ D 7(55(;
µ 0RGHO LW H[HUFLVH 7KH H[HUFLVH
ZDV KHOG DW WKH /LQFROQ /DQFDVWHU RXQW
+HDOWK 'HSDUWPHQW RQ 2FW
3DJH

23. %($21 ±± 1RYHPEHU
%LOO RYHU RI DVV RXQW UHFHLYHV KLV HPHU 1HEUDVNDQV DW WKH ,QWHUQDWLRQDO $VVRFLDWLRQ RI (PHUJHQF 0DQDJHUV FRQIHUHQFH KHOG LQ
JHQF PDQDJHPHQW FHUWL¿FDWLRQ IURP $UWKXU 2UODQGR )OD 2FW 1RY ZHUH IURP OHIW %LOO 3RRN %LOO RYHU 606JW 7KRPDV .ULSDO
5DEMRKQ JOREDO ERDUG FKDLUPDQ RI ,$(0 76JW $PEHU $OEDQR DQG 5KRQGD :RROULGJH
RYHU HDUQV HPHUJHQF PDQDJHPHQW GHVLJQDWLRQ
1HEUDVND ZDV ZHOO UHSUHVHQWHG DW $5: /LQFROQ $LU 1DWLRQDO *XDUG HPHUJHQF PDQDJHU (0

24. WKH DQQXDO FRQIHUHQFH RI WKH ,QWHU %LOO RYHU DVV RXQW 606JW 7KH (0 GHVLJQDWLRQ LV WKH
QDWLRQDO $VVRFLDWLRQ RI (PHUJHQF 7KRPDV .ULSDO WK $5: /LQ SUHPLHU (PHUJHQF 0DQDJHPHQW
0DQDJHUV ,$(0

25. LQ 2UODQGR )OD FROQ $LU 1DWLRQDO *XDUG %LOO 3RRN FHUWLÀFDWLRQ DYDLODEOH WRGD $W
2FW WR 1RY 5HJLRQ DQG 5KRQGD :RRO WKLV WLPH KH LV WKH RQO (0 LQ WKH
)LYH 1HEUDVNDQV ZHUH SUHVHQW ULGJH 2IIXWW $)% VWDWH RI 1HEUDVND 7KHUH DUH
DW WKH FRQIHUHQFH WKLV HDU 7KH $GGLWLRQDOO RYHU UHFHLYHG KLV PHPEHUV RI ,$(0 FXUUHQWO LQ WKH
ZHUH 76JW $PEHU $OEDQRWK ,$(0 GHVLJQDWLRQ DV D FHUWLÀHG VWDWH
'DNRWD RXQW KRVWV HYHQLQJ ,6 FRXUVH
'DNRWD RXQW (PHUJHQF
0DQDJHPHQW KRVWHG ,6
FODVVHV 2FW WR 1RY 7KH
FODVVHV ZHUH KHOG IURP WR SP
DQG DOOGD 6DWXUGD 7KH HYHQLQJ
VFKHGXOLQJ ZDV UHTXHVWHG E WKH
FRXQW·V YROXQWHHU ÀUH GHSDUWPHQWV
DQG ZDV D ÀUVW LQ WKH VWDWH
7KLUWWZR SHRSOH SDUWLFLSDWHG
UHSUHVHQWLQJ WKH 'DNRWD RXQW
FRPPLVVLRQ 'DNRWD LW DGPLQLV
WUDWLRQ ODZ HQIRUFHPHQW ÀUH DQG
UHVFXH DQG HPHUJHQF PDQDJH $WWHQGHHV ZHUH WUHDWHG WR VRPH WHVW D ZHHN ODWHU ZKHQ KH DVVXPHG
PHQW KRPH FRRNHG PHDOV SURYLGHG E LQFLGHQW FRPPDQG RI D GD ORQJ
7KH WZR 'DNRWD RXQW FRPPLV '(0$ DQG SUHSDUHG E 'HSXW LYLO 6XSSRUW 7HDP')'7VRQ
VLRQHUV ZKR DWWHQGHG FRPPHQWHG (0 'HDQQD %HFNPDQ ZLWK WKH )RRGV MRLQW KD]DUGRXV PDWHULDOV
WKDW WKH FODVVHV ZHUH DQ HHRSHQHU DVVLVWDQFH RI /DXUD +LQW] .QR[ H[HUFLVH +H VDLG KH IHOW ZHOO SUH
DQG WKDW WKH ZRXOG UHFRPPHQG LW RXQW (0 SDUHG DQG WKDW WKH WUDLQLQJ FRQ
WR RWKHU FRPPLVVLRQHUV DQG VXSHU 'DNRWD LW )LUH KLHI -HUU WULEXWHG WR WKH VXFFHVV RI WKH IXOO
YLVRUV DFHYLFK SXW WKH WUDLQLQJ WR WKH VFDOH GULOO
3DJH

26. %($21 ±± 1RYHPEHU
7UDQVSRUWDWLRQ VHFUHWDU 5D /D+RRG
1HZ %ULHI
DQQRXQFHV JUDQWV IRU ¿UVW UHVSRQGHUV
7KH 1HEUDVND :LUH
OHVV ,QWHURSHUDEOH
7KH 86 'HSDUWPHQW RI 7UDQV SULQW ORFDO SODQV DQG WKHQ DGPLQ 1HWZRUN 1:,1

27. PHW
SRUWDWLRQ DQQRXQFHG LW LV DZDUGLQJ LVWUDWLYHO VXSSRUW WKH 6(5 FRP 1RY LQ 1RUWK 3ODWWH
PLOOLRQ WR VWDWHV WHUULWR PLVVLRQµ 7KH JURXS GLVFXVVHG WKH VWUXFWXUH
ULHV DQG 1DWLYH $PHULFDQ WULEHV WR 7KH JUDQWV IURP WKH 86 'HSDUW RI 1:,1 DQG LWV UHODWLRQVKLS WR
LPSURYH WKH QDWLRQ·V UHVSRQVH WR PHQW RI 7UDQVSRUWDWLRQ·V 3LSHOLQH WKH 1HEUDVND RXQFLO RI 5HJLRQV
125

28. DQG VWDWH UDGLR XVHUV
WUDQVSRUWDWLRQ LQFLGHQWV LQYROYLQJ DQG +D]DUGRXV 0DWHULDOV 6DIHW
JURXS 125¶V QH[W 1H[W PHHWLQJ
KD]DUGRXV PDWHULDOV $GPLQLVWUDWLRQ 3+06$

29. DUH IXQGHG LV 'HF LQ /LQFROQ
7KH JUDQWV ZLOO KHOS WUDLQ ÀUVW E XVHU IHHV SDLG E VKLSSHUV DQG 125 DOVR PHW DQG GLVFXVVHG
UHVSRQGHUV WR UHDFW WR LQFLGHQWV FDUULHUV RI FHUWDLQ KD]DUGRXV PDWH WKH 0XWXDO $LG %DVH 6WDWLRQV 3ODQ
LQYROYLQJ KD]DUGRXV PDWHULDOV DQG ULDOV 5HJLRQDO 'DWD 1HWZRUNV VHWWLQJ
WR PHHW WKH VDIHW FKDOOHQJHV SRVHG 6LQFH RYHU PLOOLRQ WKH GDWH IRU WKH QH[W 6,3 ZRUN
VKRS RPPXQLFDWLRQV $VVHWV
E QHZ FKHPLFDOV DQG DOWHUQDWLYH HPHUJHQF UHVSRQGHUV DQG RWKHUV
6XUYH DQG 0DSSLQJ $60

30. HQHUJ SURGXFWV VXFK DV HWKDQRO KDYH UHFHLYHG WUDLQLQJ DVVLVWDQFH WRRO XVDJH DQG WUDLQLQJ 7KH QH[W
´7KLV SURJUDP VWUHQJWKHQV ORFDO QDWLRQZLGH XVLQJ +D]DUGRXV 0D 125 PHHWLQJ LV 'HF LQ /LQ
HPHUJHQF UHVSRQVH FDSDELOLWLHV WHULDOV (PHUJHQF 3UHSDUHGQHVV FROQ
DQG VHUYHV D YLWDO UROH LQ D FRPSUH +0(3

31. JUDQWV $VVLVWDQFH ZDV
KHQVLYH KD]PDW VDIHW SURJUDPµ DOVR JLYHQ WR DSSUR[LPDWHO
VDLG 6HFUHWDU 5D /D+RRG ´$O ORFDO HPHUJHQF SODQQLQJ FRPPLW
WKRXJK SUHYHQWLRQ LV RXU ÀUVW WHHV HDFK HDU LQ SUHSDULQJ DQG
SULRULW SUHSDULQJ FRPPXQLWLHV WR H[HUFLVLQJ KD]DUGRXV PDWHULDOV
UHVSRQG HIIHFWLYHO WR LQFLGHQWV WKDW HPHUJHQF UHVSRQVH SODQV DQG LQ
GR RFFXU LV HVVHQWLDO WR SURWHFWLQJ FRQGXFWLQJ FRPPRGLW ÁRZ VWXGLHV
WKH VDIHW RI DOO $PHULFDQVµ WKDW LGHQWLI WUDQVSRUWDWLRQ KD]
1HEUDVND ZLOO UHFHLYH DUGV (IIHFWLYH LQ WUDQVSRUWD
´7KLV LV DQ DQQXDO JUDQW 1(0$ WLRQ OHJLVODWLRQ PRUH WKDQ GRXEOHG
UHFHLYHV DQG WKHQ DGPLQLVWHUV XQ WKH IXQGLQJ RI WKH +0(3 JUDQWV
GHU WKH 6WDWH (PHUJHQF 5HVSRQVH SURJUDP
RPPLVVLRQ DXWKRULWLHV LQ VWDWXWHµ $OO VWDWHV RQH WHUULWRU DQG
DFFRUGLQJ WR $O %HUQGW 1(0$ DV VHYHQ 1RUWK $PHULFDQ WULEHV UH
VLVWDQW GLUHFWRU ´7KH IXQGV VXS FHLYHG +0(3 JUDQW IXQGLQJ WKLV
SRUW WKH ORFDO +D]PDW WHDPV HDU
SURYLGH DQQXDO WUDLQLQJ LQ KD]DUG 0RUH LQIRUPDWLRQ RQ WKH +0(3
RXV PDWHULDOV IRU WKH ORFDO DQG VWDWH JUDQWV SURJUDP FDQ EH IRXQG DW
UHVSRQVH WHDPV VXSSRUW WKH ORFDO KWWSKD]PDWGRWJRYWUDLQLQJ +DO %DVVHWW RI ,QWHURS 6ROXWLRQV SURYLGHG
HPHUJHQF SODQQLQJ FRPPLVVLRQV VWDWHKPHSKPHSKWP 3DUDFOHWH WUDLQLQJ IRU 1HEUDVND (PHUJHQ
F 0DQDJHPHQW VWDII
7KH 1HEUDVND (PHUJHQF 0DQDJHPHQW $JHQF 1(0$

32. LV FKDUJHG E 1HEUDVND
VWDWXWH WR UHGXFH WKH YXOQHUDELOLWLHV RI WKH SHRSOH DQG FRPPXQLWLHV RI 1HEUDVND
LQ WHUPV RI LQMXU ORVV RI OLIH DQG SURSHUW GDPDJH UHVXOWLQJ IURP QDWXUDO WHFKQR
ORJLFDO RU PDQPDGH GLVDVWHUV DQG HPHUJHQFLHV
1(0$ LV UHVSRQVLEOH IRU FRRUGLQDWLQJ WKH VWDWH UHVSRQVH LQ DQ PDMRU HPHUJHQF
RU GLVDVWHU LQFOXGLQJ WKH VXSSRUW RI ORFDO JRYHUQPHQWV DV QHHGHG RU UHTXHVWHG
DQG FRRUGLQDWLQJ DVVLVWDQFH ZLWK WKH )HGHUDO (PHUJHQF 0DQDJHPHQW $JHQF
)(0$

33. DQG RWKHU IHGHUDO SDUWQHUV
7KH %HDFRQ LV SXEOLVKHG PRQWKO E 1(0$ WR VKDUH QHZV DERXW WKH DJHQF DQG HPHU
JHQF PDQDJHPHQW DFWLYLWLHV WKURXJKRXW WKH VWDWH 6WRU LGHDV FDQ EH IRUZDUGHG WR
-RGLH )DZO 3XEOLF ,QIRUPDWLRQ 2I¿FHU 1(0$ 0LOLWDU 5RDG /LQFROQ 1(

34. RU MRGLHIDZO#QHEUDVNDJRY
3DJH