7HFKQLFDO6XSSRUW

7HOHIRQ
7HOHID[
0D[L
(0DLOVHUYLFH#ELRFLUFOHGH

%LR&LUFOH6XUIDFH7HFKQRORJ\*PE+
3DUWQHUXQG7RFKWHUJHVHOOVFKDIWHQLQ

$XVWUDOLHQ )UDQNUHLFK /LWDXHQ 6ORZDNHL

$UJHQWLQLHQ *ULHFKHQODQG /X[HPEXUJ 6ORZHQLHQ
%HOJLHQ *UREULWDQQLHQ 0H[LNR 6SDQLHQ
%XOJDULHQ ,QGLHQ 1LHGHUODQGH 7KDLODQG
%UDVLOLHQ ,VUDHO 1RUZHJHQ 7VFKHFKLHQ
&KLOH ,WDOLHQ 3KLOLSSLQHQ 7UNHL
&KLQD -DSDQ 3ROHQ 8NUDLQH
'lQHPDUN .DQDGD 3RUWXJDO 8QJDUQ
(VWODQG .URDWLHQ 5XPlQLHQ 86$
)LQQODQG /HWWODQG 6FKZHGHQ 9LHWQDP

$/

%LR&LUFOH6XUIDFH7HFKQRORJ\*PE+
%LR&LUFOH6XUIDFH7HFKQRORJ\*PE+ %LR&LUFOH6XUIDFH7HFKQRORJ\*PE+ %LR&LUFOH6XUIDFH7HFKQRORJ\$* %HWULHEVDQOHLWXQJ
%HUHQVZHJ
'*WHUVORK
:LQHW]KDPPHUVWUDH
$/LQ]
/HWWHQVWUDVVH
&+5RWNUHX]
2SHUDWLQJ,QVWUXFWLRQV
7HOHIRQ 7HOHIRQ 7HOHIRQ 0RGHGHPSORL
7HOHID[  7HOHID[ 7HOHID[
/LEUHWWRGLVWUX]LRQL
(0DLOVHUYLFH#ELRFLUFOHGH (0DLOVHUYLFH#ELRFLUFOHDW (0DLOVHUYLFH#ELRFLUFOHFK
ZZZELRFLUFOHGH ZZZELRFLUFOHDW ZZZELRFLUFOHFK *
2SHUDWLQJLQVWUXFWLRQV%,2&,5&/(0D[L(QJOLVK

7KDQN\RXIRUSXUFKDVLQJWKH%,2&,5&/(0D[L

7KLVRSHUDWLQJLQVWUXFWLRQKDVEHHQGHVLJQHGWRJLYH\RXDOOLQIRUPDWLRQ
RQWKH%,2&,5&/(0D[L

7RHQVXUHSHUIHFWIXQFWLRQLQJRI\RXU%,2&,5&/(0D[LFDUHIXOO\
UHDGWKLVRSHUDWLQJLQVWUXFWLRQEHIRUHXVLQJWKHPDFKLQH
)DPLOLDUL]H\RXUVHOIZLWKWKLVXQLW
VRSHUDWLRQLWVSDUWLFXODUIHDWXUHV
DSSOLFDWLRQVDQGOLPLWDWLRQV<RXZLOODOVRILQGXVHIXOWLSVRQVDIHW\
DQGPDLQWHQDQFH

%LR&LUFOH6XUIDFH7HFKQRORJ\*PE+

6KRXOG\RXQHHGPRUHLQIRUPDWLRQ
SOHDVHFDOORXU

6HUYLFH+RWOLQH



(
'

 
2SHUDWLQJLQVWUXFWLRQV%,2&,5&/(0D[L(QJOLVK

7DEOHRI&RQWHQWV *HQHUDO3RLQWV

 *HQHUDO3RLQWV  7KHVHRSHUDWLQJLQVWUXFWLRQVDUHDSSOLFDEOHWRWKH%,2&,5&/( 0D[L3DUWV:DVKHU,WVSHFLHVWKH

 )XQGDPHQWDO6DIHW\,QVWUXFWLRQV
 3URGXFW'HVFULSWLRQ
$VVHPEO\DQG0RGHRI2SHUDWLRQ
,QWHQGHG8VH
 7HFKQLFDO'DWD
 6WDUW8S
 2SHUDWLQJ,QVWUXFWLRQV
LQIRUPDWLRQQHFHVVDU\IRULWVFRUUHFWKDQGOLQJDQGXVDJHDQGFRYHUVWKHLQLWLDOVHWXSRSHUDWLRQPDLQ
 WHQDQFHVKXWGRZQDQGZDVWHGLVSRVDO7KHZDUQLQJVDQGDGYLFHVPHQWLRQHGLQWKHVHLQVWUXFWLRQDUH
WREHREVHUYHGDQGDGKHUHGWR,IWKHSURGXFWLVXVHGLQDFFRUGDQFHZLWKWKHUHJXODWLRQVFRUUHVSRQG
LQJWRWKHVHRSHUDWLQJLQVWUXFWLRQZHZLOOEHOLDEOHLQOLQHZLWKRXUJXDUDQWHHFRQGLWLRQV
 .HHSWKHVHRSHUDWLQJLQVWUXFWLRQVLQDVDIHSODFH7KH\DUHGHVLJQHGWRKHOSZLWKSUDFWLFDOXVDJHRIWKH
 3DUWV:DVKHUDQGVKRXOGEHDWWKHXVHUVGLVSRVDODWWKHORFDWLRQZKHUHWKH3DUWV:DVKHULVEHLQJXVHG
1RPRGLFDWLRQVRUDOWHUDWLRQVPXVWPDGHWRWKHSURGXFWZLWKRXWDXWKRULVDWLRQIURPWKHPDQ
 XIDFWXUHU7KHPDQXIDFWXUHUZLOOQRWEHOLDEOHIRUDQ\PRGLFDWLRQVPDGHZLWKRXWLWVDXWKRUL
VDWLRQDQGWKHJXDUDQWHHZLOOH[SLUHDQGFHDVHWREHYDOLG

.H\WR6DIHW\,QVWUXFWLRQV
 'DQJHUV\PERO
<RXZLOOQGWKLVV\PEROQH[WWRDOOVDIHW\LQVWUXFWLRQVUHOHYDQWWRGDPDJHSUHYHQWLRQSHUVRQDOLQMXU\
 0DLQWHQDQFH   PDWHULDOGDPDJH7DNHQRWHRIWKLVLQVWUXFWLRQDQGEHKDYHFDXWLRXVO\

 1RWHVIRU:DVWH'LVSRVDO  3URKLELWLRQV\PERO
<RXZLOOQGWKLVV\PEROQH[WWRDOOSURKLELWLRQLQVWUXFWLRQVZKHUHIDLOXUHWRFRPSO\ZLWKWKHVHFRXOGUHVXOW
 7URXEOH6KRRWLQJ*XLGH  LQGLUHFWSHUVRQDOLQMXU\DQGPDWHULDOGDPDJH,WLVPDQGDWRU\WKDWSURKLELWLRQV\PEROVDUHFRPSOLHGZLWK

 'LDJUDP6KRZLQJ(OHFWULFDO&RQQHFWLRQV  )XQGDPHQWDO6DIHW\,QVWUXFWLRQV

 5HJXODWLRQV  (YHU\SHUVRQZKRZRUNVZLWKWKHSURGXFWPXVWEHIDPLOLDUZLWKWKHFRQWHQWRIWKHRSHUDWLQJLQVWUXFWLRQV

7KHVHRSHUDWLQJLQVWUXFWLRQVDUHDSDUWRIWKHXQLWDQGPXVWEHDYDLODEOHWRWKHRSHUDWLQJVWDIIDWDOO
 7HUPVRI*XDUDQWHH  WLPHV7KHRSHUDWLQJVWDIIDUHWREHVKRZQWKHRSHUDWLQJLQVWUXFWLRQVDQGWKHGDQJHUV\PEROVDQG
SURKLELWLRQV\PEROVLQSDUWLFXODUPXVWEHSRLQWHGRXWWRWKHP
7KLVXQLWLVHTXLSSHGZLWKDFRQGXFWRUSRZHUFRUGDQGSURQJJURXQGLQJFDS,WPXVWEHFRQQHFWHGWR
DFRUUHVSRQGLQJO\JURXQGHGSRZHURXWOHWSURWHFWHGE\DFODVV$*URXQG)DXOW&LUFXLW,QWHUUXSWHU*)&,
WRSUHYHQWHOHFWULFVKRFNKD]DUG3OHDVHKDYHWKLVFKHFNHGDQGWHVWHGE\DVSHFLDOLVWLQHOHFWULFV
%HIRUHFRQQHFWLQJWKLVXQLWFKHFNWKDWWKHYROWDJHVKRZQRQWKHUDWLQJSODWHLVWKHVDPHDVRIWKH
SRZHUVRXUFH2SHUDWLQJWKLVXQLWRQDYROWDJHRWKHUWKDQVSHFLHGRQLWVUDWLQJSODWHPD\UHVXOWLQ
SHUVRQDOLQMXU\WRWKHXVHUDQGGDPDJHWRWKHXQLW
7KHXQLWPXVWRQO\EHRSHUDWHGE\WKRVHSHRSOHDXWKRULVHGWRGRVR
<RXU%,2&,5&/(PDFKLQHLVHTXLSSHGZLWKPDJQHWLQVHUWHGXQGHUQHDWKWKHFRXUVHOWHULQWKHVLQN (
DOZD\VKDQGOHLWZLWKFDUHDVLWZLOOVKDWWHULIGURSSHGDQGPD\FDXVHLQMXULHV.HHSPDJQHWDZD\
IURPHOHFWURQLFGHYLFHVDQGPDJQHWLFPHGLDVXFKDVRSS\GLVFFUHGLWFDUGVDQGFRPSXWHUPRQLWRUV '
.HHSPDJQHWDZD\IURPSDFHPDNHUV

 
2SHUDWLQJLQVWUXFWLRQV%,2&,5&/(0D[L(QJOLVK

3URGXFW'HVFULSWLRQ
   
$VVHPEO\DQG0RGHRI2SHUDWLRQ   VLQNRQO\ *
  VLQNJDVNHW *
  EUXVKKRVHFP *
  KRVHFODPSVL]H) *
  ZD\YDOYH *
  )LWWLQJ037LQ%DUE *
  )OH[IDXFHWFRPSOHWH *'
  )ORZWKURXJKEUXVK *
  6WDLQOHVVVWUDLQHUOLG *'
  6WDLQOHVVPHVKEDVNHW *'
  0DJQHW *'
  'DPSHU *'
  1\ORQORRSVWUDS *
  %DVH *
  *DVVSULQJ *
  9HQWSODWH *
  (YDSRUDWLRQEDUULHU *
  )LWWLQJ037;EDUE *'
  )LWWLQJ037;EDUEHOOERZ *'
  ,1,QQLSSOH *
  ,139&EDOOYDOYH *
  )LOWHUFDUWULGJHVHHSDJH 
  )LOWHUKRXVLQJ *'
  )LOWHUEUDFNHW *'
  +RVHFODPSVL]H+ *
  VLQNKRVHFP *
  5HSODFHPHQW5089 *
  &RYHUIRU508ZLWKJDVNHW *
  *DVNHWIRUFRYHU *
  3XPSVZLWFKFRQVLVWLQJRI 
  3XPSVZLWFKFRQWDFW *'
  3XVKEXWWRQIRUSXPSVZLWFK *'
  3RZHUFRUGSURQJ *
  2ULQJOWHUKRXVLQJ *' (
  ZD\YDOYHFDS *
  ZD\YDOYHNQRE * '
  3RZHUFRUGZDUQLQJODEHO *
  %XONKHDGWWLQJ *

 
2SHUDWLQJLQVWUXFWLRQV%,2&,5&/(0D[L(QJOLVK

 1R '(6&5,37,21 3URG1R

  +RVHFODPSVL]H+ *
  &RYHUIRU508ZLWKJDVNHW *
  *DVNHWIRUFRYHU *
  OWHUKRVHFP *
  $LUSXPSVWUDS *
  5DLO *
  $LUGLIIXVHU *
  3XPSVZLWFKFRQVLVWLQJRI 
  3XPSVZLWFKFRQWDFW *'
  3XVKEXWWRQIRUSXPSVZLWFK *'
  0DLQVZLWFKNQRE *
  7LPHU *
  3XPSVXSSRUW *
  0VWUDLQUHOLHI *
  7HPSHUDWXUHOLPLWLQJVZLWFK *
  7KHUPRVWDWZLWKFDSLOODU\VHQVRU *
  )OXLGSXPS:9 *
  3RZHUFRUGSURQJ *
  $LUSXPS:9 *
  1LWULODLUWXEHDSSUR[FP *
  0DLQRDWVZLWFK9 *'
  3XPSVXSSRUWSOXJ *
  3XPSVXSSRUWJDVNHW *
  7HUPLQDODVVHPEO\9 *
  7HUPLQDOHQGEUDFNHW *
  +HDWHU:9 *
  0DLQSRZHUVZLWFKFRQWDFW *
  $LUGLIIXVHUEUDFNHW *
  +HDWHUJDVNHW *
  3RZHUFRUGZDUQLQJODEHO *
  5HG/(' *

(
'

 
2SHUDWLQJLQVWUXFWLRQV%,2&,5&/(0D[L(QJOLVK

7KHSXPSLVHOHFWULFDOO\RSHUDWHGDQGSXPSVWKHFOHDQLQJOLTXLGWKURXJKWKHFRQQHFWLQJWXEHWRWKH ,QWHQGHG8VH
ZD\EDOOYDOYH'HSHQGLQJRQLWVSRVLWLRQWKHFOHDQHUFDQHLWKHUEHSURSHOOHGWRWKHVLQNYLDWKH
WXEHZLWKWKHEUXVKRUYLDWKHYHUVDWLOHMRLQWHGKRVH7KHZRUNSLHFHLVORFDWHGLQWKHLQWHULRURIWKH 7KH SDUWV ZDVKHU LV DQ HQYLURQPHQWDOO\ VRXQG

WDEOHDQGFDQEHFOHDQHGWKHUH7KHXVHGFOHDQLQJOLTXLGUXQVWKURXJKWKHVLQNVFHQWHUHGOWHUEDFN SLHFH RI HTXLSPHQW GHVLJQHG WR HIFLHQWO\ FOHDQ
%,2&,5&/(/LTXLG
LQWRWKHFRQWDLQHU0LFURRUJDQLVPVWKHQEUHDNGRZQWKHRLODQGIDWLPSXULWLHV PDFKLQHSDUWVPRWRUVFDVLQJRURWKHUSDUWVFRY
HUHGLQRLODQGIDWZLWKWKHDLGRI%,2&,5&/(/LTXLG $FRQWDLQHUO
&RPSDULVRQEHWZHHQFRQYHQWLRQDO3DUWV&OHDQHUZLWK&ROG&OHDQHUDQG DELRORJLFDOFOHDQLQJOLTXLG $GUXPO
%,2&,5&/(/LTXLG

&ROG %,2&,5&/(
&OHDQHU %,2&,5&/(/

:KDWLVWKHHIIHFWRILQFUHDVHG VDWXUDWLRQRIWKHFOHDQLQJOLTXLG JRRGVWDEOH

FRQWDPLQDWLRQ" FOHDQLQJHIIHFWIDOOVRII UHVXOWVWKH
 ZKROHWLPH

:KDWFRQWDPLQDWLRQV
FDQEHUHPRYHG"
2UJDQLTXHDSRODUJUHDVHRLO 9HU\JRRGUHVXOWV 9HU\JRRGUHVXOWV
,QRUJDQLTXHSRODUVDOWV 3RRUUHVXOWV 9HU\JRRGUHVXOWV
,QRUJDQLTXHDSRODULURQILOOLQJVGXVW 3RRUUHVXOWV *RRGUHVXOWV
 

:KDWPDWHULDOVFDQEHFOHDQHG"
6WDLQOHVVVWHHO 9HU\JRRGUHVXOWV 9HU\JRRGUHVXOWV
6WHHO 9HU\JRRGUHVXOWV 9HU\JRRGUHVXOWV
$OXPLQLXP 9HU\JRRGUHVXOWV 9HU\JRRGUHVXOWV
1RQIHUURXVKHDY\PHWDOV 9HU\JRRGUHVXOWV 9HU\JRRGUHVXOWV

6DIHW\DQGKHDOWKSURYLVLRQVIRUZRUNHUV 7HFKQLFDO'DWD

+HDOWKGDPDJH &ROG %,2&,5&/( 'LPHQVLRQV +[:['PP

6RXUFH5HLQLJHQXQG(QWIHWWHQ%*0DVFKLQHQEDXXQG0HWDOO%* &OHDQHU %,2&,5&/(/
:RUNLQJKHLJKW PP
8VDEOHZRUNVSDFH PP[PP
'DPDJHWRWKHQHUYRXVV\VWHP 7ROXHQH[\OHQHVWULFKORUHWK\OHQH QRQH
EHQ]HQHVKH[DQHLVRPHUVSHQWDQH :HLJKWZKHQHPSW\ NJ
KHSWDQHRFWDQH

/RDGFDSDFLW\ NJ
'DPDJHWRWKHVNLQ <HV QRQH
0LQLPXPWDQNFDSDFLW\ O

'DPDJHWRWKHOLYHU 'LFKORUPHWKDQH7ULFKORUHWK\OHQH QRQH

0D[LPXPWDQNFDSDFLW\ O
7ROXHQH[\OHQHVPHWKDQROHWKDQRO
7DQNPDWHULDO 3(/'
'DPDJHWRWKHNLGQH\V 7ULFKORUHWK\OHQH.HURVHQH3HWURO QRQH 3RZHULQSXW DSSUR[:
JDVROLQH+H[DQHKHSWDQHWROXHQH
[\OHQHDOFRKROV (OHFWULFDOFRQQHFWLRQ 9a+]
'DPDJHWRWKHEORRGFHOOV 7ROXHQQHEHQ]HQH QRQH +HDWLQJ :VWDLQOHVVVWHHO
/HYHOVZLWFK 0LQLPXPOOOHYHODSSUR[O
0XWDJHQVDQGWHUDWRJHQHV 2UJDQLFVROYHQWV

QRQH 7HPSHUDWXUH DSSUR[&IDFWRU\VHW (
3XPS :OKU
&DQFHURJHQ %HQ]HQH QRQH
2SHUDWLQJWHPSHUDWXUH WR& '

 
2SHUDWLQJLQVWUXFWLRQV%,2&,5&/(0D[L(QJOLVK

6WDUW8S 2SHUDWLRQ,QVWUXFWLRQ

$IWHUUHPRYLQJWKHSDFNDJLQJFKHFNWKHFDVLQJDQGFRQWUROIRUDQ\SRVVLEOHWUDQVSRUWGDPDJH6KRXOG 7XUQWKHFOHDQLQJSXPS21SUHVVLQJ3RZHUVZLWFK3XPS:HWWKHVLQNSDUWVWREHFOHDQHGDQG
WUDQVSRUWGDPDJHEHGHWHFWHGGRQRWFRQQHFWWKHPDFKLQHWRWKHPDLQV,QVWHDGUHSRUWWKHGDPDJH DQ\EUXVKHVSULRUWRFOHDQLQJWKLVZLOOSUHYHQWJUHDVHDQGGLUWIURPVWLFNLQJWRWKHVXUIDFHV
WRWKHFDUULHUDQGWR%LR&LUFOH6XUIDFH7HFKQRORJ\*PE+7KHRULJLQDOSDFNDJLQJPXVWEHUHWDLQHG
3ODFH WKH XQLW LQ D GU\ DQG VWDEOH SODFH RI \RXU FKRLFH 7KH JURXQG PXVW EH HYHQ ,I QHFHVVDU\ 7KHPD[LPXPORDGRINJPXVWQRWEHH[FHHGHG
OHYHO WKH JURXQG RXW ZLWK VXLWDEOH PDWHULDO (QVXUH WKDW WKH GUDLQ YDOYH LV FORVHG 8VH RQO\ WKH
JHQXLQH %,2&,5&/(/ &OHDQLQJ /LTXLG 7R OO WR WKH RSWLPXP YROXPH O VKRXOG EH UHTXLUHG 'HSHQGLQJRQWKHSRVLWLRQLQJRIWKHZD\FRQWUROYDOYHFOHDQLQJFDQRFFXUYLD
'RQRWRYHUOO :DVKLQJE\PHDQVRIDYHUVDWLOHMRLQWHGKRVHZLWKQR]]OH
&OHDQLQJZLWKRZWKURXJKFOHDQLQJEUXVK
2WKHUFOHDQLQJOLTXLGVVXFKDVFOHDQHUVROYHQWVGLVLQIHFWDQWVDQGDONDOLQHFOHDQHUIRUH[ ,QPLGGOHSRVLWLRQERWKRXWOHWVDUHRSHQ
DPSOHPXVWQRWEHXVHG
2Q2II 2Q2II
0DLQ3RZHUVZLWFK 3RZHUVZLWFK3XPS $IWHUWKHFOHDQLQJSURFHVVKDVHQGHG
VZLWFKRIIWKHSXPSDJDLQ
7KHXQLWLVHTXLSSHGZLWKDQHOHFWURQLFWLPHUZKLFKVWRSV
WKHSXPSDXWRPDWLFDOO\DIWHUPLQXWHV7KHWLPHUUDQJH
FDQEHVHWEHWZHHQVHFRQGVDQGKRXUV

1RWH$Q\SDUWVVXVFHSWLEOHWRFRUURVLRQ
VKRXOGQRWEHOHIWLQWKHVLQNDIWHUFOHDQLQJ 7LPHUSXPS

&RQQHFWWKHXQLWWRWKHHOHFWULFLW\VXSSO\ $VZLWKDOOSDUWVFOHDQHUVH[FHVVJUHDVHDQGRLOVKRXOGEHGLV S R V H G
3OHDVH HQVXUH WKDW WKH FXUUHQW HQWU\ SURYLGHG E\ WKH FXVWRPHU LV IXUQLVKHG ZLWK DQ (/&% (DUWK RISULRUWRZDVKLQJ'RQRWXVHWKLVXQLWDVDZDVWHGXPS'RQRWLQWURGXFHGLVLQIHFWDQWVVRO
/HDNDJH&LUFXLW%UHDNHU),VZLWFK7XUQPDLQSRZHUVZLWFKWR,
1RWH'RQRWWXUQ21WKHPDLQSRZHUVZLWFKZLWKQROLTXLGLQVLGHWKHPDFKLQH
7KHKHDWHUVWDUWVWRZDUPXSWKHFOHDQLQJOLTXLGWRRSHUDWLQJWHPSHUDWXUH
$OORZKHDWHUWRZDUP%,2&,5&/(/VROXWLRQWRZRUNLQJWHPSHUDWXUHIRURSWLPDOFOHDQLQJHIFLHQF\
:KHQWKHVROXWLRQKDVUHDFKHGLWVSURSHUZRUNLQJWHPSHUDWXUHRIDSSUR[&7KLVZLOOWDNHDSSUR[
YHQWVEUDNHXLGHQJLQHFRRODQWFKORULQDWHGDFLGLFRUDONDOLQHVROXWLRQVLQWRWKLVV\VWHP'RQRW
DGGZDWHU
7KHRSWLPDOWHPSHUDWXUHIRUWKHDFWLYLW\RIPLFURRUJDQLVPVDQGWKHUHIRUHIRUWKHEUHDNGRZQRIRLO
LVDSSUR[&7KHUHIRUHOHDYHWKHXQLWDOZD\VVZLWFKHGRQ
)RURSWLPDODFWLYLW\RIPLFURRUJDQLVPVDQGWKXVRIWKHEUHDNGRZQRIRLOLWLVHVVHQWLDOWKDWWKHPLFUR
RUJDQLVPVKDYHDVXSSO\RIR[\JHQ7KLVLVZK\DQDLUVSULQNOHUKDVWREHSHUPDQHQWO\VZLWFKHG
KRXUVZLWKDOLTXLGDW&SHULRGLFDOO\WKHKHDWHUZLOOWXUQLWVHOI21 RQZKLFKJXDUDQWHHVWKHUHTXLUHGR[\JHQVXSSO\IRUWKHPLFURRUJDQLVPV,IWKHXQLWLVVZLWFKHGRII
RUIDLOVEHFDXVHRIDGHIHFWWKHUHVXOWLVWKDWWKHPLFURRUJDQLVPVEHFRPHLQDFWLYH
1HYHUWXUQRIIWKH%,2&,5&/(XQLWXQOHVVIRUVHUYLFLQJRUORQJHUSHULRGVRIQRQXVHPRUHWKDQ
WZRZHHNVVHHFKDSWHU2SHUDWLRQLQVWUXFWLRQV2QFHWKHFRUUHFWWHPSHUDWXUHKDVEHHQUHDFKHG ,IWKHXQLWLVWREHLGOHIRUPRUHWKDQWZRZHHNVLWLVUHFRPPHQGHGWRWXUQWKHXQLWRII0DNHVXUHWKH
WKHXQLWLVUHDG\IRUXVH VXUIDFHRIWKHOLTXLGLVQRWFRYHUHGZLWKRLO,IQHFHVVDU\VNLPRIIRUDEVRUEDQ\DFFXPXODWLRQRIRLO (
'

 
2SHUDWLQJLQVWUXFWLRQV%,2&,5&/(0D[L(QJOLVK
0DLQWHQDQFH
:DUQLQJ%HIRUHEHJLQQLQJWRZRUNRQ[WXUHVPDNHVXUHWKDWWKHUHLVQRHOHFWULFDOFXUUHQW
3XOOWKHSOXJIURPWKHPDLQV&KHFNWKDWWKHXQLWKDVQRFXUUHQW
)RUPDLQWHQDQFHSXUSRVHVWKHWDEOHFDQEHRSHQHGVLGHZD\V7KHVLQNZLOOEHNHSWLQWRRSHQSRVL
WLRQYLDJDVVSULQJPDNHVXUHWKHVLQGLVOLIWHGXSWRHQGSRVWLRQ
)LOWHUV
7KHSDUWVZDVKHULVHTXLSSHGZLWKWKUHHSDUWOWUDWLRQV\VWHPDFRDUVHOWHURQWKHVXUIDFHRIWKH
VLQNXQGHUQHDWKDVWDLQOHVVVWHHOOWHUIRUQHUPDWHULDORURWKHULPSXULWLHVDQGWKHQDPDJQHW,W
LV UHFRPPHQGHG WR FOHDQ WKHVH OWHUV )RURUGHUUHRUGHU
DQGWKHPDJQHWRXWVLGHWKHSDUWVZDVK *EUDFNHWIRUOWHUEDJLQFOXGLQJVFUHZV
HUGDLO\7DNHWKHOWHUVDQGWKHPDJQHW *OWHUEDJSRO\SUR\OHQHIHOWP
RXWRIWKHVLQNZDVKRXWDQGFOHDQZLWK *OWHUEDJSRO\SUR\OHQHIHOWP
ZDWHU 8QGHUQHDWK WKH VLQN D OWHU EDJ *OWHUEDJ1\ORQPUHXVHDEOH
FDQEHLQVWDOOHGFKHFNWKLVUHJXODU\DQG *OWHUEDJ1\ORQPUHXVHDEOH
HPSW\RUFKDQJHLIQHFHVVDU\
/LTXLG)LOWHU
7KHOWHUKRXVLQJLVLQVWDOOHGRQWKHULJKWEDFNRIWKHXQLW,WLVWREHFKHFNHGZHHNO\DQGLIQHFHVVDU\
FKDQJHG5HOHDVHWKHOWHUFDUWULGJHE\
0DLQWHQDQFHSRVLWLRQWDEOH WXUQLQJDQWLFORFNZLVH5HPRYHWKHOWHU )RURUGHUUHRUGHU
DQG SXW LQ D QHZ RQH :KHQ VFUHZLQJ *%,2&,5&/(UHSODFHPHQWOWHUPSDFN
$HUDWLRQ
7KHEXLOGLQDHUDWLRQIHDWXUHLVYLWDOWRWKHSHUIRPDQFHRIWKHELRUHPLGLDWLRQSURFHVV7KHUHIRUH
FKHFNZHHNO\WKHDLULQSXWDLUEXEEOHVVKRXOGEHYLVLEOHDWWKHVXUIDFHRIWKHOLTXLG,IQHFHVVDU\
FOHDQRUFKDQJHWKHDLUVSULQNOHU
)LOO/HYHO
0RQLWRUWKHOOOHYHOUHJXODUO\E\PHDQVRIWKHPDUNLQJVRQWKHZDOORIWKHFRQWDLQHUEHFDXVHRI
OLTXLGORVVHVGXHWRHYDSRUDWLRQDQGPDQXDOWDNHRXW,IWKHOOXSKHLJKWIDOOVEHORZWKHPLQLPXP
OHYHOKHDWLQJDQGSXPSZLOOEHVZLWFKHGRIIDXWRPDWLFDOO\IRUVDIHW\UHDVRQVWKLVZLOOEHLQGLFDWHGE\
OLJKWQLQJWKHUHG/('(QVXUHWKDWRDWVZLWFKRDWVIUHHO\LQWKHOLTXLG
RQWKHOWHUFDUWULGJHWDNHFDUHWKDWLWWV *%,2&,5&/(UHSODFHPHQWOWHUPSDFN
FRUUHFWO\$OWHUQDWLYHO\DUHXVDEOH1\ORQ *%,2&,5&/(1\ORQ)LOWHU6XSSRUW
OWHUFDQEHLQVWDOOHG *%,2&,5&/(1\ORQ)LOWHUP
'UDLQDS
7KLV XQLW LV HTXLSSHG ZLWK D DS ORFDWHG XQGHUQHDWK WKH FRDUVH OWHU DQG PDJQHW WR VORZ GRZQ
HYDSRUDWLRQLIWRRPXFKHYDSRUDWLRQRFFXUVYHULI\WKDWDSPRYHVIUHHO\
$QQXDOPDLQWHQDQFH
,WLVUHFRPPHQGHGWKDW\RXU%,2&,5&/(0D[LLVLQVSHFWHGDQGFOHDQHGDQQXDOO\WRSHUIRUPDWRS
WLPDOHIFLHQF\'HSHQGLQJRQWKHDSSOLFDWLRQQRQGLJHVWLEOHPDWWHUFDQDFFXPXODWHDVVOXGJHDWWKH
ERWWRPRIWKHWDQNRYHUWLPHZKLFKFDQQHJDWLYHO\DIIHFWWKHELRUHPHGLDWLRQDFWLYLW\

0D[LPXP 7RIDFLOLWDWHWKHUHPRYDORIWKHVOXGJHWXUQWKHPDLQSRZHUVZLWFKWR2DQGXQSOXJXQLW&RQQHFWD
O KRVHWRGUDLQYDOYHDQGIXOO\RSHQWKHYDOYHZDLWDIHZVHFRQGVDQGWKHQFORVHWKHYDOYH5HSHDW
WKHVHVWHSVWLPHVWRUHPRYHPRVWRIWKHVOXGJH

0LQLPXPO $OWHUQDWLYHO\RSHQWKHVLQNDQGHPSW\WKHXQLWIURPDOOWKHFOHDQLQJVROXWLRQXVLQJDKDQGSXPSXQWLO
WKHVOXGJHEHFRPHVYLVLEOH,IFOHDQLQJVROXWLRQLVVWLOOFOHDQLQJZHOOVDYHLWIRUUHXVH5HPRYHWKH
VOXGJHDQGFOHDQWKHWDQNZDOOVDQGSXPSV$IWHUWKDWUHOOWKHXQLWWXUQLWRQDQGDOORZVROXWLRQWR (
ZDUPXSWRLWVSURSHUZRUNLQJWHPSHUDWXUHRIDSSUR[&EHIRUHFOHDQLQJSDUWV
'
9LVXDOO\LQVSHFWSXPSVWXELQJDQGFRQQHFWLRQV5HSODFHSDUWVWKDWVKRZH[FHVVLYHZHDU

 
2SHUDWLQJLQVWUXFWLRQV%,2&,5&/(0D[L(QJOLVK

1RWHVIRU:DVWH'LVSRVDO 7KHIDLOXUHRIWKHKHDWHUFRXOGKDYHGLIIHUHQWFDXVHV
7KHOHYHOLVEHORZPLQLPXPLQGLFDWHGE\UHG/('WKHKHDWHUZLOOEHVWRSSHGDXWRPDWLFDOO\
&OHDQLQJRIWKHSDUWVWDNHVSODFHZLWKDQDONDOHVFHQWELRGHJUDGDEOHQRQWR[LFFOHDQLQJDJHQWLQDZDUP +HDWHUGHIHFWFKHFNIRUHOHFWULFDOX[DQGFRQQHFWLRQV7KHUHVLVWDQFHRIWKHKHDWHUVKRXOGEH
DTXHRXVVROXWLRQ8VHG%,2&,5&/(/FDQXVXDOO\EHDGGHGWR\RXURWKHURLOZDWHUZDVWHVXFKDVZDWHU DSSUR[2KPLIWKHYDOXHYDULHVVLJQLFDQWWKHKHDWHUQHHGVWREHFKDQJHG
VROXEOHFXWWLQJXLGVIRUGLVSRVDO7DNLQJLQWRDFFRXQWORFDOUHJXODWLRQVUHVLGXDOOLTXLGFDQEHVXSSOLHGWR 7KHKLJKWHPSHUDWXUHVZLWFKLVDFWLYDWHGSXVKXSWKHZKLWHSLQDWWKHKLJKOLPLWVZLWFK,IWKHUHLV
DSXULFDWLRQSODQW7KHZDVWHFRGHQXPEHUVWKDWDUHYDOLGIRUWKHDSSOLFDWLRQFDQEHH[WUDFWHGIURPWKH DORZFOLFNVRXQGWRKHDUWKHKLJKOLPLWVZLWFKKDGUHOHDVHG
(XURSHDQ:DVWH'LUHFWLYHDQGVKRXOGEHDGKHUHGWRDWDOOWLPHV $WWHQWLRQWKHKLJKOLPLWVZLWFKFDQRQO\EHUHVHWLIWKHWHPSHUDWXUHKDVIDOOHQEHORZDSSUR[&

&DXVHVIRUWKHKLJKOLPLWVZLWFKUHOHDVH
7URXEOH6KRRWLQJ*XLGH 7KHDHUDWLRQKDVVWRSSHGEHFDXVHRIORZFRQYHFWLRQWKHWHPSHUDWXUHDWWKHKHDWHUUDLVHGWRPXFK
7KHOHYHOLVWRORZDQGGXHWRDOHYHOVHQVRUIDLOXUHWKHKHDWHUZDVQRWVZLWFKHGRI
:DUQLQJ%HIRUHEHJLQQLQJWRZRUNRQ[WXUHVPDNHVXUHWKDWWKHUHLVQRHOHFWULFDOFXUUHQW3XOOWKH 7KHWHPSHUDWXUHUHJXODWRUKDVDIDLOXUHSOHDVHFKHFNWKHOLTXLGWHPSHUDWXUH
SOXJIURPWKHPDLQV&KHFNWKDWWKHXQLWKDVQRFXUUHQW
'HEXJDQGSXVKXSWKHZKLWHSLQDWWKHKLJKOLPLWVZLWFK$JHQWOHFOLFNQRLVHVKRZVWKDWWKHKLJK
6LQNOOVXS OLPLWVZLWFKKDVRSHQHG&KHFNIRUFDXVH
6LQNZLOOOOXSLIWKHOWHUVRUPDJQHWDUHGLUW\RUFORJJHG5HPRYHOWHUVDQGFOHDQDOOSDUWV(QVXUHWKHGUDLQ
DSPRYHVIUHHO\
$WWHQWLRQ$UHVHWLVRQO\SRVVLEOH
1RRUZHDNOLTXLGRZIURPQR]]OHRURZWKURXJKEUXVK DIWHUFRROLQJGRZQ IDLOVDIH
7KHUXEEHUKRVHPD\EHSLQFKHGDORQJLWVOHQJWK(QVXUHWKHKRVHLVQRWNLQNHGRUVTXHH]HG$OVROWHU KLJKWHPSHUDWXUHVZLWFK
FRXOGEHGLUW\RUFORJJHGUHPRYHOWHUFDUWULGJHDQGUHSODFHZLWKQHZRQH
6HQVRUKLJK
&OHDQLQJSXPSGRHVQRWZRUN WHPSHUDWXUH
3OHDVHFKHFNIRUEORFNHGSXPSOWHURUOWHUFDUWULGJH&KHFNHOHFWULFDOFRQQHFWLRQV&KHFNOLTXLGOHYHO IDLOVDIH WHPSHUDWXUHUHJXODWRU
SXPSVVWRSVLIOHYHOLVORZ7KHXQLWLVHTXLSSHGZLWKDQHOHFWURQLFWLPHUWRVWRSWKHOLTXLGSXPS7KH
UDQJHLVEHWZHHQVHFRQGDQGKRXUFKHFNVHWWLQJ
6ROXWLRQGRHVQRWFOHDQZHOODQ\PRUH
1RPRUHDHUDWLRQ 7KHELRUHPHGLDWLRQSURFHVVPD\KDYHEHHQUHGXFHGRUSUHYHQWHGE\WKHLQWURGXFWLRQRILQDGHTXDWH
$HUDWLRQKDVVWRSSHGEXWDLUSXPSLVVWLOOUXQQLQJ VXEVWDQFHVRUDQXQIDYRXUDEOHHQYLURQPHQW'HSHQGLQJRQWKHVLWXDWLRQUHSODFLQJDOORUSDUWRIWKH
&KHFNLIWKHDLUKRVHLVSLQFKHGVRPHZKHUHDORQJLWVOHQJWK FOHDQLQJVROXWLRQWRUHVWDUWWKHV\VWHPPD\EHUHTXLUHG)RUDUHVWDUWWDNHDSSUR[ORXWRIWKH
&KHFNLIWKHDLUGLIIXVHULVDWWDFKHGWRWKHHQGRIWKHDLUKRVHQH[WWRWKHSXPSVDQGFOHDQRUUHSODFHLW WDQNDQGUHSODFHE\QHZ%,2&,5&/(/LTXLG$IWHUDSSUR[GD\VWKHOLTXLGJDLQVLWVRULJLQDODELOLW\
LIQHFHVVDU\ WREUHDNGRZQRLODQGIDWLPSXULWLHV$UHVWDUWZLWKSDUWRIWKHXVHGOLTXLGZLOORQO\EHSRVVLEOHLIWKH
7XUQPDLQSRZHUVZLWFKWRXQSOXJWKHXQLWUHPRYHWKHFRYHURIFRQWUROPRGXOHDQGFKHFNZKHWKHUWKH PLFURRUJDQLVPV DUH QRW SRLVRQHG IRU H[DPSOH E\ VROYHQWV GLVLQIHFWDQWV RU DONDOLQH FOHDQHU ,Q
DLUKRVHLVQRWGLVFRQQHFWHGIURPWKHDLUSXPSRUSLQFKHGVRPHZKHUHDORQJLWVOHQJWK FDVHRIGRXEWEHWWHUFKDQJHWKHFRPSOHWHOLTXLG
1RSXPSQRLVHFKHFNHOHFWULFDOFRQQHFWLRQFKDQJHSXPSLIQHVVHFDU\
6ROXWLRQ2GRXU (
,WLVQRUPDOWKDWWKHVROXWLRQPD\HPLWDDSSOHRGRXUDWVWDUWXS$VRLODQGJUHDVHDUHLQWURGXFHGLQWR
WKHFOHDQLQJVROXWLRQWKLVRGRXUZLOOGLPLQLVKOHDYLQJRQO\DIDLQWSOHDVDQWVFHQW '

 
2SHUDWLQJLQVWUXFWLRQV%,2&,5&/(0D[L(QJOLVK

'LDJUDPVKRZLQJHOHFWULFDO&RQQHFWLRQV

% /
SRZHU
SXPS & 1
OHYHO SXVK DLU OLTXLG VXSSO\ $
SRZHUVXSSO\ VZLWFK EXWWRQ SXPS SXPS
KHDWHU 3(
EURZQ
5(6(7 ' (
OLIWXSWKHZKLWHVOLGHU
/ / JUH\ EODFN
WKHUHVHWLVRQO\SRVVLEOHDIWHU
WKHOLTXLGLVFRROHGGRZQ ' (
PDLQVZLWFK
WLPHU 3(
7XQLW %
$  <
3(
SXPS
$ $
% SXVK
% /
%
OHYHOVZLWFK EXWWRQ
&'
7HPSHUDWXU
UHJOHU
& % 
& 1
&

VLJQDOOLJKW
       <

' $
'
WLPHU
'
$


  KLJKWHPSHUDWXUH (
 

( (
VZLWFK '
  $  WR  % & % &
$
$ <   3(

WR WR WR
1 WLPHU WLPHU WLPHU WHPSHUDWXUH 

FRQWUROOHU ' OLTXLG DLU

'
SXPS SXPS
$
WR
PDLQVZLWFK VLJQDOOLJKW (
WLPHU
& %

%&SXPSSXVKEXWWRQ

'WRWLPHU<
&ODPS (WRWLPHU
KHDWHU
$%&SRZHUVXSSO\ %&DLUSXPS
'(WRPDLQVZLWFK '(IURPPDLQVZLWFK

$%&IURPOHYHOVZLWFK $%&OLTXLGSXPS

'WR7LPHU$ 'WRKLJKWHPSHUDWXUHVZLWFK
(WRVLJQDOOLJKW/ (IURPWLPHU

%WROHYHOVZLWFK $%&KHDWHU

'WRWHPSHUDWXUH 'IURPKLJKWHPSHUDWXUHVZLWFK
FRQWUROOHU (IURPWHPSHUDWXUHFRQWUROOHU

(
'

 
0RGHGHPSORLGX%,2&,5&/(0D[L)UDQoDLV

5HJXODWLRQV

7KHXQLWVDUHVXEMHFWWRVWULFWVDIHW\UHJXODWLRQV7KHUHIRUHIDXOW\SDUWVPXVWEHUHSODFHGE\
(*.RQIRUPLWlWVHUNOlUXQJ
RULJLQDOVSDUHSDUWVRQO\$VSDUHSDUWOLVWLVDYDLODEOHRQUHTXHVW LP6LQQHGHU(*5LFKWOLQLH0DVFKLQHQ(*$QKDQJ,,$

%,2&,5&/(0D[LFRPSO\ZLWKWKH&(FULWHULDVHHSDJHRIWKLVPDQXDO &('HFODUDWLRQRI&RQIRUPLW\
/HWWHU$'LUHFWLYH(*DSSHQGL[,,$

'pFODUDWLRQGHFRQIRUPLHWp&(
ODQRUPHSURGXLWV(*DSSHQGL[,,$

'LFKLDUD]LRQHGLHFRQIRUPLWj&(
DLVHQVLGHOODGLUHWWLYDPDFFKLQH&(&(DOOHJDWR,,$

7HUPVRI*XDUDQWHH 

:LU:H1RXV1RL %LR&LUFOH6XUIDFH7HFKQRORJ\*PE+
%HUHQVZHJ
$OO%LR&LUFOH6XUIDFH7HFKQRORJ\*PE+DUWLFOHVDUHLQVSHFWHGDQGWHVWHGEHIRUHVKLSPHQW '*WHUVORK
'HXWVFKODQG*HUPDQ\$OOHPDJQH*HUPDQLD
DQGDUHZDUUDQWHGWREHIUHHIURPDQ\GHIHFWLQPDWHULDODQGIDXOW\ZRUNPDQVKLS%LR&LUFOH 
6XUIDFH 7HFKQRORJ\ *PE+ JLYHV JXDUDQWHH RI  PRQWKV RQ WKH PDFKLQHV H[FHSW ZHDU HUNOlUHQKLHUPLWGDVVGLH3URGXNWHGHFODUHWKDWWKHSURGXFWVGpFODURQVTXHOHVSRGXLWVGLFKLDULDPRFKH

SDUWV7KLVZDUUDQW\GRHVQRWDSSO\ZKHQQRUPDOPDLQWHQDQFHLVUHTXLUHGUHSDLUVRUUHSODFH 3LQVHOUHLQLJXQJVWLVFKH3DUWVZDVKHUODYDSH]]LIRQWDLQHV
 
PHQWVKDYHEHHQPDGHE\DQ\RQHRWKHUWKDQ%LR&LUFOH6XUIDFH7HFKQRORJ\*PE+DXWKRU  %LR&LUFOHPLQL
L]HGSHUVRQQHODQGGRHVQRWFRYHUDQ\GDPDJHFDXVHGE\DFFLGHQWVPRGLFDWLRQVXVHRI  %LR&LUFOHFRPSDFW
 %LR&LUFOHPD[L
LPSURSHUDFFHVVRULHVDQGDEXVHRUPLVXVH,IDQH[DPLQDWLRQVKRZVWKDWWKHPDOIXQFWLRQZDV 
IROJHQGHQHLQVFKOlJLJHQ%HVWLPPXQJHQHQWVSUHFKHQ&RQILUPWKHIROORZLQJGLUHFWLYHV6RQWFRQIRUPHVDX[
FDXVHGE\GHIHFWLYHPDWHULDORUIDXOW\ZRUNPDQVKLS%LR&LUFOH6XUIDFH7HFKQRORJ\*PE+ZLOO GLVSRVLWLRQVGHVGLUHFWLYHVGHVSURGXLWVVRQRFRQIRUPLFRQOHUHODWLYHGLVSRVL]LRQLGHOODGLUHWWLYD&(

UHSDLURUDWRXURSWLRQUHSODFH 5LFKWOLQLHGLUHFWLYH (*((&
'LUHWWLYD (*0DVFKLQHQULFKWOLQLH((&0DFKLQHU\'LUHFWLYH
'LUHFWLYHUHODWLYHDX[PDFKLQHV'LUHWWLYDUHODWLYDDOOHPDFFKLQH

(*((&
1LHGHUVSDQQXQJVULFKWOLQLH'LUHFWLYH/RZ9ROWDJHGLUHFWLYH
EDVVHWHQVLRQGLUHWWLYDEDVVDWHQVLRQH

 ((&
 (OHNWURPDJQHWLVFKH9HUWUlJOLFKNHLWVULFKWOLQLH'LUHFWLYHRQWKH
(OHFWURPDJQHWLF&RPSDWLELOLW\&RPSDWLELOLWj(OHFWURPDJQpWLFD

XQGKDUPRQLVLHUWH1RUPHQDQGKDUPRQLVHGUHIHUHQFHVWDQGDUGVHWOHVQRUPHVKDUPRQLVpHVHQRUPH
DUPRQL]]DWH
(1 
(1
(1

$QJHZHQGHWHQDWLRQDOH1RUPHQ5LFKWOLQLHQXQG6SH]LILNDWLRQHQLQVEHVRQGHUH
(PSOR\HGQDWLRQDOVWDQGDUGVGLUHFWLYHVDQGVSHFLILFDWLRQVLQSDUWLFXODU
$SSOLTXDLHQWGHVQRUPHVQDWLRQDOHVOHVGLUHFWLYHVHWOHVVSpFLILFDWLRQVHQSDUWLFXOLHU
1RUPHQD]LRQDOLGLUHWWLYHHVSHFLILFKHLQSDUWLFRODUH

',1

'LH(UNOlUXQJYHUOLHUWLKUH*OWLJNHLWEHLQLFKWEHVWLPPXQJVJHPlHU9HUZHQGXQJXQGEHLbQGHUXQJHQDQGHP
3URGXNWGLHQLFKWPLWGHP+HUVWHOOHUDEJHVSURFKHQZHUGHQ
7KHGHFODUDWLRQORVHVLWVYDOLGLW\LIWKHGHYLFHLVQRWXVHGDVLQWHQGHGRULIFKDQJHVLQWKHSURGXFWDUHPDGHZKLFK
DUHQRWGLVFXVVHGZLWKWKHPDQXIDFWXUHU
/DGpFODUDWLRQSHUGVDYDOLGLWpORUVTX
HOOHQHVWSDVXWLOLVpHFRPPHSUpYXHWHQFDVGHPRGLILFDWLRQTXLQHVRQW
SDVFRQYHQXHVDYHFOHIDEULFDQW
/DGLFKLDUD]LRQHSHUGHODVXDYDOLGLWjTXDQGRQRQqXWLOL]]DWDFRPHSUHYLVWRHVHOHPRGLILFKHQRQVRQRG
DFFRUGR
FRQLOFRVWUXWWRUH



*WHUVORK