)5(48(1&<:($3216$5(5($/. 7+(86(2)0,/,7$5< 121/(7+$/ :($3216832162&,(7<72:$5'. 62&,$/&21752/. 5HPRWHO\2SHUDWHG(OHFWURPDJQHWLF)UHTXHQF\:HDSRQV. 8VLQJ0LFURZDYH(/)DQG$FRXVWLF)UHTXHQF\DUHEHLQJXVHGWR. FRYHUWO\DWWDFNLQQRFHQWLQGLYLGXDOVDQGVRFLHW\HQPDVVHWRZDUG.

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

PRYLHV6HHWKHP.

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

. $SSDUDWXVIRUWKH7UHDWPHQW. RI1HXURSV\FKLFDQG6RPDWLF. 'LVHDVHVZLWK+HDW/LJKW. 6RXQGDQG9+). (OHFWURPDJQHWLF5DGLDWLRQ. 863DWHQW/<. 5DELFKHY9)9DVLOLHY$. 63XWLOLQ7*,OLQD39. 5DNXDQG/3.HPLWVN\. 1RYHPEHU'RQ WOHW. WKHQLFHWLWOHIRRO\RX7KLVLV. WKHSDWHQWIRU/,'$WKH. LQIDPRXV6RYLHWEUDLQZDVKLQJ. PDFKLQH . 1RQ,QYDVLYH0HWKRGDQG. $SSDUDWXVIRU0RGXODWLQJ. %UDLQ6LJQDOVWKURXJKDQ. ([WHUQDO0DJQHWLFRU(OHFWULF. )LHOGWR5HGXFH3DLQ86. 3DWHQW(OL]DEHWK. 5DXVFKHUDQG:LOOLDP9DQ. %LVH'HFHPEHU . . . . . . .

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

5REHUW0RQURH2FWREHU. ,PSURYHGPHWKRGVDQGDSSDUDWXVIRU. HQWUDLQLQJKXPDQEUDLQSDWWHUQV. HPSOR\LQJIUHTXHQF\IROORZLQJ. UHVSRQVH))5

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

3527(&7,21)5201(852. (/(&7520$*1(7,&)5(48(1&<. 0,1'&21752/:($321. E\*HRUJH)DUTXKDU. 3URWHFWLRQIURP)UHTXHQF\3V\FKRWURQLFZHDSRQVLVQRWDQHDV\WDVN7KLVLVSDUWLFXODUO\VR. EHFDXVHWKHYDVWDUUD\RIV\PSWRPVWKDWDUHFDXVHGE\DWWDFNVIURPWKHVHZHDSRQVGXSOLFDWH. V\PSWRPVWKDWFDQEHFUHDWHGIURPRWKHUQDWXUDO

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

WKHVRRQHUWKDW. WKHUHDOLW\RIWKLV+XPDQ5LJKWV$EXVHZLOOEHFRPHFOHDUO\HYLGHQWDQGSV\FKRWURQLFDOO\. DWWDFNHGYLFWLPVZLOOWKHQEHWDNHQVHULRXVO\. ,WPXVWEHUHFRJQLVHGWKDWRQO\WKRVHLQDXWKRULW\ZKRKDYHDQDEVROXWHDQGJHQXLQHUHJDUG. IRU+XPDQ5LJKWVZLOOWDNHGLUHFWDFWLRQLQGHIHQFHRIVRFLHW\ZKDWHYHUWKHFRQVHTXHQFHVWR. WKHLUVRFLDOVWDWXVSURIHVVLRQDOHWKLFVILQDQFLDOSRVLWLRQRUHYHQWKUHDWWRWKHLURZQOLIH. 3UHVHQWO\WKLVKXPDQLVWLFTXDOLW\LVH[WUHPHO\UDUHZLWKLQWKHVRFLDOSURIHVVLRQV.

,I\RXEHOLHYH\RXDUHXQGHUSV\FKRWURQLFDWWDFNLWLVLPSHUDWLYHWRVWD\DVFDOPDQGDV. FHQWUHGDVSRVVLEOH7KLVZLOODOOHYLDWHWKHDWWDFNWRVRPHGHJUHHJUHDWHURUOHVVHUGHSHQGLQJ. RQWKHLQWHQVLW\RIWKHDWWDFNDQGKRZZHOOWKHLQGLYLGXDOFDQUHPDLQFDOPDQGFHQWUHG. $YHU\VLPSOHPHWKRGWRUHPDLQFDOPDQGFHQWUHGZLWKLQRQHVHOILVWRFRQQHFW\RXUDZDUHQHVV. WR\RXUEUHDWKDQGERG\)LQGDSODFHWRVLWRUOD\TXLHWO\DQGSODFH\RXUDWWHQWLRQRQWDNLQJ. LQVORZGHHSEUHDWKVIURPWKHEDVHRIWKHVWRPDFK%UHDWKHLQWKURXJKWKHQRVHDQGRXW. WKURXJKWKHPRXWK$OVREHDZDUHRI\RXUERG\KRZLVLWIHHOLQJDQGUHDFWLQJWRWKH. H[SHULHQFH"&RQWLQXHWKLVXQWLOWKHV\PSWRPVRIWKHDWWDFNKDYHDOOHYLDWHGRUFHDVHG. DOWRJHWKHUWKHQGRFXPHQW\RXUH[SHULHQFHVLQ\RXUMRXUQDO. ,WKDVEHHQUHFRJQLVHGWKDWUHPRWHSV\FKRWURQLFDWWDFNVFDQDSSHDUOHVVHIIHFWLYHZKHQRXWVLGH. UDWKHUWKDQLQVLGHDEXLOGLQJ7KHUHFRXOGEHDQXPEHURIUHDVRQVIRUWKLV7KHEXLOGLQJLWVHOI. PD\KHOSWRFRQWDLQDQGDPSOLI\WKHQHJDWLYHIUHTXHQFLHVWKDWDUHEHLQJIRUFHGXSRQ\RX7KH. HOHFWURPDJQHWLFSROOXWLRQZKLFKVXUURXQGVHYHU\EXLOGLQJEHFDXVHRIWKHOLYHHOHFWULFDOZLULQJ. DQGDSSOLDQFHVPD\KDYHDEHDULQJRQDPSOLI\LQJQHJDWLYHIUHTXHQFLHVIURPWKHZHDSRQV. <RXFDQH[SHULPHQWZLWKWKLVE\OHDYLQJWKHEXLOGLQJDQGJRLQJWRDSODFHZKHUHWKHUHLVOLWWOH. RUQRHOHFWURPDJQHWLFSROOXWLRQZKLFKHPDQDWHVIURPSRZHUOLQHVDQGPLFURZDYHDQWHQQDHWF. ,I\RXDUHLQ\RXUKRXVHDQG\RXFDQQRWOHDYHIRUDQ\UHDVRQH[SHULPHQWE\VZLWFKLQJWKH. SRZHURIIDWWKHPDLQV7KHFORVHSUR[LPLW\RIHOHFWURPDJQHWLFSROOXWLRQIURPDQ\QHLJKERXUV. KRPHVPD\KDYHDQDIIHFWRQDQ\FKDQJH$VDOOSRSXODWHGDUHDVDUHVXUURXQGHGE\QHJDWLYH. IUHTXHQFLHVIURPHOHFWURPDJQHWLFHQHUJLHVLWFRXOGEHUHFRPPHQGHGWRH[SHULPHQWE\. ORFDWLQJ\RXUVHOILQSODFHVRIQDWXUH3ODFHVRIQDWXUHVXFKDVLQWKHIRUHVWE\WKHVHDRUD. ULYHUHWFQRUPDOO\KDYHKLJKSRVLWLYHHOHFWURPDJQHWLFILHOGVDURXQGWKHP7RVRPHGHJUHH. WKLVPD\ZHOOUHGXFHWKHHIIHFWRIWKHQHJDWLYHIUHTXHQFLHVIURP3V\FKRWURQLF:HDSRQV. &RQWLQXHWRH[SHULPHQWZLWKGLIIHUHQWPHWKRGVZKHQ\RXEHOLHYH\RXPD\EHXQGHUDWWDFN. DQGDOZD\VGRFXPHQW\RXUH[SHULHQFHV%\NHHSLQJLQWRXFKZLWKDVPDQ\):VXUYLYRUVDV. SRVVLEOHZKRFDQIXOO\XQGHUVWDQG\RXUVLWXDWLRQPD\EHDEOHWRKHOSVXSSRUW\RXWKURXJK. PRUHGLIILFXOWWLPHV:KDWHYHUKDSSHQVVWD\VWURQJFRXUDJHRXVDQGEHDVVXUHGWKDWRQHGD\. WKHSHRSOHRIWKHZRUOGZLOOEHIUHHIURPWKHVHUHPRWHSV\FKRWURQLFDWWDFNVRQVRFLHW\DQG. WKRVHUHVSRQVLEOHZLOOEHEURXJKWWRMXVWLFH.

6,/(17:($3216)25$48,(7:$. $6(&5(70,/,7$5<'2&80(17(;326('

. $1(;75$&7)520'$9,',&.(6%5,//,$17%22.. $1'7+(7587+6+$//6(7<28)5((. 7+,6'2&80(17&/($5/<'(6&5,%(6. 7+('2*0$7,& $87+25,7$5,$10(17$/,7<.

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

XQUHOHQWLQJHPRWLRQDODIIURQWDWLRQVDQGDWWDFNVPHQWDODQGHPRWLRQDOUDSH

E\WKHZD\RI. DFRQVWDQWEDUUDJHRIVH[YLROHQFHDQGZDUVLQWKHPHGLDHVSHFLDOO\WKH79DQGWKH. QHZVSDSHUV. E

JLYLQJWKHPZKDWWKH\GHVLUHLQH[FHVVMXQNIRRGIRUWKRXJKWDQGGHSULYLQJWKHPRI. ZKDWWKH\UHDOO\QHHG.

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

EHFRPHVWRRJUHDWDQGWKH\FUDFNXS7KHUHIRUHWKHVLOHQWZHDSRQLVDW\SHRI. ELRORJLFDOZDUIDUH,WDWWDFNVWKHYLWDOLW\RSWLRQVDQGPRELOLW\RIWKHLQGLYLGXDOVRIDVRFLHW\. E\NQRZLQJXQGHUVWDQGLQJPDQLSXODWLQJDQGDWWDFNLQJWKHLUVRXUFHVRIQDWXUDODQGVRFLDO. HQHUJ\DQGWKHLUSK\VLFDOPHQWDODQGHPRWLRQDOVWUHQJWKVDQGZHDNQHVVHV. ,QRWKHUZRUGVGLYLGHDQGUXOHDQGLQWURGXFH\RXJOREDOGLFWDWRUVKLSYLDWKHVWHSSLQJVWRQHV. DSSURDFKDQGIHZUHDOLVHZKDWLVUHDOO\JRLQJRQXQWLOLWLVWRRODWH,QIDFWPDQ\ZLOOHYHQ.

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

ZKRKDVVXFKORZVHOI. HVWHHPWKDWVKHKDVDQLQQHUEHOLHIWKDWVKHGHVHUYHVWREHSXQLVKHG

DWWUDFWVWKHPDQZKR. ZLVKHVWRSXQLVKRWKHUWRDYRLGORRNLQJZLWKLQ

7KLVLVGRQHWKURXJKWKHDWWUDFWLRQRIWZR. PDJQHWLF FDSHV :KHQRQHYLROHQWUHODWLRQVKLSEUHDNVGRZQWKHZRPDQVLPSO\DWWUDFWV. DQRWKHUXQWLOWKHFDXVHWKHODFNRIVHOIORYH

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

VODYH FUHDWHHDFKRWKHU.

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o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

FRPELQDWLRQVDQGRXWOLQHVWKHLUOLNHO\HIIHFW7KLQJVGRQ WKDYHWRKDSSHQLQUHVSRQVHWRWKHVH. DVWURORJLFDOFKDQJHVEHFDXVHZHKDYHIUHHZLOOEXWWKH\DUHPRUHOLNHO\WRKDSSHQ.

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

DQGWKHZKROHVRFLDOVHFXULW\V\VWHPLVSODQQLQJWRGRWKHVDPH7KHSODQWRSKDVHRXW. FDVKPRYHVDSDFH$8QLWHG.LQJGRPFRPSDQ\$,08.ZKLFKVSHFLDOLVHVLQDXWRPDWLF. LGHQWLILFDWLRQSURGXFHGDIDFHZLWKDEDUFRGLQJRQWKHIRUHKHDGDVSDUWRILWVSXEOLFLW\. PDWHULDO2QHRIWKLVFRPSDQ\ VSURGXFWVLV5DGLR)UHTXHQF\,GHQWLILFDWLRQZKLFKUHDGV. HOHFWURQLFODEHOVLQPDQXIDFWXULQJZDUHKRXVLQJVKRSVDQGRQSHRSOH7KHWHFKQRORJ\QRZ.

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

ZRXOGEHWKHHQGRISDVVSRUWV7KHFKLSUHFKDUJHVLWVHOIE\WXUQLQJWKHFKDQJHVLQERG\. WHPSHUDWXUHLQWRDG\QDPRV\VWHPWKHPRVWHIIHFWLYHSODFHVWKH\KDYHIRXQGIRUWKLVDUHWKH. IRUHKHDGDQGWKHEDFNRIWKHZULVW7KH%%& VFLHQFH SURJUDPPH7RPRUURZ V:RUOG. UHYHDOHGLQ6HSWHPEHUKRZLQWKH8.SHRSOHDUHDOUHDG\EHLQJPLFURFKLSSHGZLWKWKHLU. PHGLFDOUHFRUGV7KLVVWXIILVKDSSHQLQJ12:.

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