$//86,21672+(127+(,60$1'02127+(,60,1 &,&(52·6%22.,,2)7+(1$785(2)7+(*2'6 $/86,21(6$/+(127(,602<(/02127(Ì602(1(//,%52,,'( 62%5(/$1$785$/(=$'(/26',26(6'(&,&(5Ð1 ,6+$*$0/$7+ 8QLYHUVLW\RI.HODQL\D6UL/DQNDLVKD#NOQDFON 5(&,%,'2(/'((1(52'(<$352%$'2(/'(0$5=2 5(680(1 $ OD OX] GH XQD SURIXQGD H[pJHVLV GH OD WHRORJtD RQWROyJLFD HVWRLFD HO OLEUR ,, GH 6REUH OD QDWXUDOH]D GH ORV GLRVHV GH &LFHUyQFRQVWLWX\HXQDLQYHVWLJDFLyQGH OD QDWXUDOH]D GH OR GLYLQR HQ WpUPLQRV GH VX H[LVWHQFLD VXV IXQFLRQHV \ ODV EHQGLFLRQHV TXH FRQILHUH VREUH OD KXPDQLGDG 3HUPLWH XQD FRPSUHQVLyQ VXVWDQFLDOGHODWHVLVPiVDPSOLDGHXQD MXVWLÀFDFLyQ WHyULFD GH OD HVHQFLD GH OR GLYLQR FRQFHSWXDOL]DGD HQ OD IRUPD GH XQ VHU VXSUHPR GLYLQR HO SULQFLSLR TXH JRELHUQD XQ FRVPRV DUWLFXODGR GH PDQHUDGLYLQDDOLJXDOTXHXQDVHULHGH DUTXHWLSRV VXEVLGLDULRV TXH HPDQDQ VX LOXPLQDFLyQ HWHUQD \ VLPXOWiQHDPHQWH $ SHVDU GH OD GLILFXOWDG SDUD GHWHFWDU OD H[WHQVLyQ \ ORV JUDGRV GH ORV DVXQWRV FODYH UHODFLRQDGRV FRQ ORV FULWHULRV GH XQD YHUGDG WHROyJLFD HQ &LFHUyQ LH OD GHULYDFLyQ GH FRQFHSWRV SODWyQLFRV OD LQÁXHQFLDGHODVPRGLÀFDFLRQHVRUWRGR[DV GHORVHVWRLFRVWDUGtRV\ORVSUHFXUVRUHVGHO QHRHVWRLFLVPR 3RVLGRQLR \ VX GHIHQVD PHWRGROyJLFDTXHFRQÀUPDODVGRFWULQDV HVWRLFDVHQODVTXHVREUHYLYHQDOXVLRQHVD ORVFRQFHSWRVUHOLJLRVRVDFXxDGRVDSHQDV HQ HO VLJOR ;9,, $' FRPR KHQRWHLVPR \ PRQRWHtVPR HVWH DUWtFXOR H[SORUD ORV JUDGRV GH UHÁH[LyQ GH HVWRV FRQFHSWRV UHOLJLRVRVSRVWXODGRVHQHOPDUFRWHyULFR GHO OLEUR ,, GH 6REUH OD 1DWXUDOH]D GH ORV GLRVHV DO LJXDO TXH VX FRQFHSWXDOL]DFLyQWHROyJLFDGHORGLYLQR 3$/$%5$6&/$9( &LFHUyQ KHQRWHLVPR PRQRWHLVPR OR GLYLQR3RVLGRQLRYHUGDGWHROyJLFD $%675$&7 ,Q WKH OLJKW RI D SURIRXQG H[HJHVLV RI 6WRLF RQWRORJLFDO WKHRORJ\ ERRN ,, RI &LFHUR·V 7KH 1DWXUH RI WKH *RGV LV DQ LQTXLU\ LQWR WKH QDWXUH RI WKH GLYLQH LQ WHUPV RI LWV H[LVWHQFH IXQFWLRQV DQG EOHVVLQJV FRQIHUUHG XSRQ KXPDQNLQG ,W SURYLGHV VXEVWDQWLDO LQVLJKW LQWR KLV ZLGHU WKHVLV RI D WKHRUHWLFDO MXVWLÀFDWLRQ RIWKHHVVHQFHRIWKHGLYLQHFRQFHSWXDOL]HG LQ WKH IRUP RI D 6XSUHPH 'LYLQH %HLQJ WKH JRYHUQLQJ SULQFLSOH LQ D GLYLQHO\ DUWLFXODWHG FRVPRV DV ZHOO DV D KRVW RI VXEVLGLDU\DUFKHW\SHVZKRHWHUQDOO\DQG VLPXOWDQHRXVO\HPDQDWHLWVLOOXPLQDWLRQ 'HVSLWH WKH GLIILFXOW\ LQ GHWHFWLQJ WKH H[WHQW DQG GHJUHHV RI NH\ LVVXHV UHODWHG WR&LFHUR·VFULWHULDRIDWKHRORJLFDOWUXWK LH GHULYDWLRQ RI 3ODWRQLF FRQFHSWV WKH LQIOXHQFH RI RUWKRGR[ PRGLILFDWLRQV RI ODWHU6WRLFVDQGSUHFXUVRURI1HR6WRLFLVP 3RVHLGRQLXV DQG KLV PHWKRGRORJLFDO GHIHQVH FRQÀUPLQJ 6WRLF GRFWULQHV WKHUH VXUYLYHV DOOXVLRQV WR UHOLJLRXV FRQFHSWV FRLQHG QRW EHIRUH WKH WK FHQWXU\ &( VXFKDVKHQRWKHLVPDQGPRQRWKHLVP7KLV SDSHUH[SORUHVWKHGHJUHHVRIUHÁHFWLRQRI WKHVHUHOLJLRXVFRQFHSWVSRVWXODWHGZLWKLQ WKH WKHRUHWLFDO IUDPHZRUN RI ERRN ,, RI 7KH1DWXUHRIWKH*RGVDV ZHOO DV KLV WKHRORJLFDO FRQFHSWXDOL]DWLRQ RIWKHGLYLQH .(<:25'6 & L F H U R K H Q R W K H L V P P R Q R W K H L V P 3RVHLGRQLXVWKHGLYLQHWKHRORJLFDOWUXWK 'LVFXVLRQHV)LORVyÀFDV$xR1HQHUR²MXQLRSS ,VKD*DPODWK $EULHIDVVHVVPHQWRIWKHIROORZLQJFRQFHSWVLVDSUHUHTXLVLWHIRUWKH HYROXWLRQRI&LFHUR·VWKHRORJLFDOFRQFHSWXDOL]DWLRQRIWKHGLYLQH 3RO\WKHLVPPRQRWKHLVPDQGKHQRWKHLVP 7KH (XURSHDQ VFKRODUO\ GLVSXWH RQ WKH H[SUHVVLRQ RI UHOLJLRXV FRQFHSWVSRO\WKHLVPPRQRWKHLVPDQGKHQRWKHLVPLVDKRWO\SXUVXHG VXEMHFW DQG FRQVLGHUDEOH DPRXQW RI UHVHDUFK LV EHLQJ FRQGXFWHG LQ WKLV DUHD DGGUHVVLQJ WKHLU VSHFLÀ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Á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·VFRQFHSWLRQRIWKHGLYLQHZLWKLQ KLVRZQDUWLFXODWLRQRIDWKHRORJLFDOIUDPHZRUNLQERRN,,RI7KH1DWXUH RIWKH*RGV 6XSUHPHGLYLQHEHLQJ %RRN,,RI&LFHUR·V7KH1DWXUHRIWKH*RGVLVDYLUWXDOHPERGLPHQWRI6WRLF RQWRORJLFDOWKHRORJ\WKRXJKWKHH[WHQWDQGGHJUHHVRIKLVGHULYDWLRQRI WKHFDUGLQDOWHDFKLQJVRIWKH6WRLFVLVGLIÀFXOWWRDVVHVV&LFHURSURIHVVHV H[FHOOHQWNQRZOHGJHRIWKHSDUWLFXODUO\SDQWKHLVWLFREVHUYDWLRQVRIWKH 'LVFXVLRQHV)LORVyÀFDV$xR1HQHUR²MXQLRSS $//86,21672+(127+(,60$1'02127+(,60,1&,&(52·6%22.,,2)7+(1$785(2)7+(*2'6 SULQFLSOHH[SRQHQWVRIWKH(DUO\DQG0LGGOH6WRD=HQRDQG &KU\VLSSXVLQWHUPVRIWKHLUFRQWULEXWLRQWRWKHNQRZOHGJH RI WKH VWUXFWXUH RI WKH FRVPRV 7KH WUDQVIRUPDWLRQ RI WKH WUDGLWLRQDOSDQWKHRQLQ+RPHULFFDQRQLQWRSHUFHSWLEOHFRVPLFIRUFHV VXQPRRQVWDUVSODQHWVVHDVRQVDQGWKHFRQÁ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ÀHG DV *RG ZKR DFWV XSRQ WKH SDVVLYH LPEXLQJ IRUP DQG TXDOLW\ +DKP %HWHJK 7KH SDVVLYH FRPSULVHV RI WUDQVGLPHQVLRQDO K\SRWKHWLFDO VHFRQGDU\ HQWLWLHV ZKRVH H[LVWHQFH DQG IXQFWLRQV LQ WKHLU HQWLUHW\ FDXVHV WKH XQLILFDWLRQ RI WKH FRVPRV 7KH DFWLYH DQG SDVVLYH DUH LQWHUFRQQHFWHG LQ VXFK D PDQQHU WKDW WKH\ FDQ QHLWKHU EH VHSDUDWHG QRU EH LQGHSHQGHQW 7KH V\QWKHVL]DWLRQ RI WKLV 6WRLF SRVLWLRQ LV DQ HSLVWHPRORJLFDOFULWHULRQSDUDPRXQWIRU&LFHUR·VSUHVXSSRVLWLRQRID SHUHQQLDO DQG H[XOWHG VXSUHPH GLYLQH EHLQJ ZKRVH SULPDU\ GLYLQH LQWHOOLJHQFH QRW RQO\ VXSHUVHGHV EXW DOVR JHQHUDWHV D FRQFHSWLRQ RI D VHFRQGDU\ GLYLQH LQWHOOLJHQFH 7KLV FORVH DIÀQLW\ EHWZHHQ &LFHUR·VFRQFHSWXDOL]DWLRQRIDSHUHQQLDOEHLQJZKRVHSUHVLGHQF\DQG JRYHUQDQFHLVLQYLRODEOHDQGWKHFRQFHSWLRQRID*RGZKRRSHUDWHVRQ IRUPOHVVPDWWHULVREYLRXVO\DSRLQWRIDJUHHPHQWEHWZHHQWKH6WRLFVDQG &LFHUR'LRJHQHV/DHUWLXV,WLVSODXVLEOHWR PDLQWDLQWKHDVVXPSWLRQWKDWZLWKLQWKLVFRQWH[WXDOIUDPHZRUNVXUYLYHV WKHJHUPRIKHQRWKHLVPDQGPRQRWKHLVP&LFHURDWWULEXWHVDFFODPDWLRQV DOOXGLQJWRDPRQRWKHLVWLFHQGRUVHPHQWRIDVXSUHPHGLYLQHEHLQJLQ WHUPVRILWVVXSUHPDF\LQWKHIROORZLQJSRWHQWLDODUHDVJHQHUDWLRQ SURYLGHQFHJRYHUQDQFHSHUIHFWLRQ JRRGQHVVUHJXODWLRQUDWLRQDOLW\ PRWLRQZKROHQHVV SXULW\DQGVXEWOHW\ZLVGRP7KH GLYLQLW\RIWKHXQLYHUVHFDQEHXQGHUVWRRGLQWHUPVRIWKLVVXSUHPDF\ 7KHIRFDOSRLQWRIWKLVVXSUHPDF\LVWKDWLWLVGHYRLGRIDQ\ UHIHUHQFH WR LPLWDWLRQ 7KLV DOOXVLRQ WR PRQRWKHLVP ,VKD*DPODWK KRZHYHU FDQ EH TXHVWLRQHG LQ UHODWLRQ WR &LFHUR·V DWWULEXWLRQ RI D VLPLODUFXUUHQWRILGHDVUXQQLQJFRXQWHUWRWKHSURJHQ\RUVHFRQGDU\ LQWHOOLJHQFHVZKRVHSRVVHVVLRQRIWKHIROORZLQJPDUNVWKHPRIIIURPWKH VXSUHPHGLYLQJEHLQJDVVHSDUDWHHQWLWLHVGLYLQLW\KDUPRQ\EHDXW\ PRWLRQ DQG HWHUQLW\ UDWLRQDOLW\ H[FHOOHQFH JXLGDQFH LQWHOOLJHQFH À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·VFRQFHSWXDOL]DWLRQRIDVXSUHPHGLYLQHEHLQJZKRVHLOOXPLQDWLRQ DQGLQIXVLRQRIORZHUOHYHOVRIUHDOLW\LQWKHPDQQHUPRVWDSSURSULDWH IRUHDFKUHVSHFWLYHUHDOPIRUPVDKLHUDUFK\LQWKHFRVPRV([LVWHQFH RIDKLHUDUFK\QDWXUDOO\GHVLJQDWHVWKHFRQFHSWLRQRIKLJKHUDQGORZHU UHDOPV7KHLGHQWLÀFDWLRQRIWKHFRQÁDWLRQRIWKHVHUHDOPVFXOPLQDWLQJLQ V\QFUHWLFLVPOHQGVYDOXHWRWKHFRQFHSWLRQRIWKHGHVFHQWDQGDFTXLVLWLRQ RIWKHHIÀFDF\RIWKHVXSUHPHGLYLQHEHLQJ7KDWWKLVEHLQJHPERGLHVDQ XQPLWLJDWHGXQLYHUVDOODZHQVKULQLQJWKHHQWLUHFHOHVWLDOFLUFXLWFDQEH WUDFHGHOVHZKHUHLQ&LFHUR/DZV5HSXEOLF'H 2IÀFLLV%XWLWLVLQERRN,,RI7KH1DWXUHRIWKH*RGVWKDWKH SRVWXODWHVDFRQWH[WFRUUHVSRQGLQJWRKHQRWKHLVPQRWZLWKVWDQGLQJLWV VWURQJSRO\WKHLVWLFLPSOLFDWLRQV7KHXQLYHUVDOLW\RIFHOHVWLDOJRYHUQDQFH DVVXUHGO\WUDQVFHQGVWKHQDUURZOLPLWDWLRQVRIDQLGHDOL]HGYHUVLRQRI PRQRWKHLVP 6LQJOHPLQG 7KH UHÁHFWLRQ RI WKH GLYLQH DW YDULRXV OHYHOV RI WKH JUDGHG FRVPRV WKURXJKRXWERRN,,RI7KH1DWXUHRIWKH*RGVLVVXJJHVWLYHRIDQLQHYLWDEOH KLHUDUFKL]DWLRQDQGDVXEVHTXHQWV\QFUHWLFLVP%DOEXVPRXWKSLHFHRI &LFHURUHSUHVHQWVWKLVLGHDZLWKFODULW\LQRQHRIKLVVSHHFKHV 7KH XQLYHUVH LWVHOI LV WKH RULJLQ VHHG DQG SDUHQW VR WR VSHDNRIHYHU\WKLQJZKLFKLVVXEMHFWWRWKHQDWXUDOODZ,W QRXULVKHVDQGHPEUDFHVDOOWKLQJVDVDERG\GRHVLWVRZQ OLPEVDQGSDUWV 'LVFXVLRQHV)LORVyÀFDV$xR1HQHUR²MXQLRSS $//86,21672+(127+(,60$1'02127+(,60,1&,&(52·6%22.,,2)7+(1$785(2)7+(*2'6 &LFHUR·VFRQWULYDQFHRIDVLQJOHPLQGFRQWUROOLQJWKHSOXUDOLW\RIWKH GLYLQH KLHUDUFKLF DQG V\QFUHWLVWLF DYRZHGO\ FRQWDLQV DOOXVLRQV WR ERWKPRQRWKHLVPDQGSRO\WKHLVP,QWHUPVRIPRQRWKHLVPWKLVVLQJOH PLQGIXQFWLRQVLQWKHIRUPRIDQ¶RULJLQ·¶VHHG·¶SDUHQW·RUVLPSO\DV WKHSULPDU\GLYLQHIRUFHWKDWFDXVHVWKHULVHRIDOOFRVPLFSKHQRPHQD,W DEVRUEVDQGHQYLVDJHVDOOVHFRQGDU\LQWHOOLJHQFHVRU¶OLPEV·DQG¶SDUWV·VR WKDWWKLVJUDGHGFRVPRVUHSUHVHQWVDQXQH[SODLQDEOHWRWDOLW\ZKROHQHVV IXOOQHVV7KLVFDQEHXQGHUVWRRGLQWHUPVRISRSXODU6WRLFDQDORJ\ &LFHURUHIHUVWR¶QDYLJDWLRQ· FXOWLYDWLRQ WKH VXQGLDO WR FRQÀUP KLV WKHRORJLFDO VWDQGSRLQWZLWKLQZKLFKVXUYLYHVVFRSHIRUWKHXQGHUVWDQGLQJRIWKLV WRWDOLW\ %XW KH DOPRVW XQFRQVFLRXVO\ VKHGV VXEVWDQWLDO OLJKW RQ DQ LGHDOL]HGPRQRWKHLVPZKHQKHUHIHUVWRWKLVVLQJOHPLQGDV*RGQDWXUH DQGSURYLGHQFH 6XFKWHUPLQRORJ\UHIHUVWRDXQLTXHDQGSUHRUGDLQHGVXSUHPDF\VRWKDW WKHUHUHPDLQVQRÁDZVVHWEDFNVGLVFUHSDQFLHV ,QWKHIRUPRIDVLQJOHPLQGWKHVXSUHPHGLYLQHEHLQJLQÁLFWVLWVIDU JUHDWHU DQG VXSHULRU SURSXOVLRQ LQ WKH IRUP RI FRVPLF V\PSDWK\ ,WLVIHDVLEOHWRDUJXH DW WKLV MXQFWXUH WKDW &LFHUR GRHV LQ QR ZD\ DGYRFDWH·V PRQRWKHLVP V\QRQ\PRXVZLWKWKHVFULSWXUDOVWULFWQHVVUHSUHVHQWDWLYHRIFKULVWLDQLW\ ,WLVPRQRWKHLVWLFLQWKHVHQVHWKDWLQWKHIRUPRIDVLQJOHPLQGLWUXOHV HDFKDQGHYHU\SKHQRPHQRQRIWKHGLYLQHKLHUDUFK\EXWZLWKDEVROXWHO\ QRRYHUZKHOPLQJDXWKRULW\RYHUWKHP$IWHUDOOWKHGLYLQHKLHUDUFKLHV DUHGHVFULEHGDVKHDYHQO\ERGLHVZKRDUH &UHDWHGRXWRIWKHSXUHVWDQGWKHPRVWDFWLYHHOHPHQWVRI WKHDHWKHUZLWKQRDGPL[WXUHRIDQ\EDVHUVXEVWDQFHEXW DUHDOOKHDWDQGÀUH6RWKDWWKH\WRRPD\YHU\SURSHUO\ EH GHVFULEHG DV OLYLQJ EHLQJV FRQVFLRXV DQG LQWHOOLJHQW ,QIHULRU ZKHQ FRPSDUHG WR WKH VXSHULRULW\ RI WKH VLQJOH PLQG WKHVH ¶FRQVFLRXV·DQG¶LQWHOOLJHQW·QRHWLFHQWLWLHVWKDWDUHPDQLIHVWHGDVFHOHVWLDO IRUFHV ZLWKLQ &LFHUR·V FRQFHSWXDO IUDPHZRUN DUH WRSRJUDSKLFDOO\ FRQÀQHGWRWKHLUUHVSHFWLYHGRPDLQV%XWWKH\GRGHSHQGRQWKHVLQJOH PLQG XQGHU ZKRVH SUHVLGHQF\ DQG JRYHUQDQFH WKH\ DUH H[SHFWHG WR H[LVWDQGHQJDJHLQYDULHGIXQFWLRQV7KLVUHTXLUHVDYLUWXDOQHJRWLDWLRQ DPRQJWUDQVGLPHQVLRQDOGRPDLQV5DWLÀHGDQGIXUWKHUMXVWLÀHGZLWK UHIHUHQFHWRJHRPHWU\LQDQGWKH6WRLFKRVWLOLW\WR(SLFXUHDQV ,VKD*DPODWK LQPDGHE\4XLQWXV/XFLOLXV%DOEXV&LFHURGHPRQVWUDWHVWKH FKDUDFWHURIVSKDHUDRUVSKHUHDQGN\NORVRUFLUFOHDVDFUHGLEOHH[SODQDWLRQ IRUWKHHTXDOLW\RIWKHGLVWDQFHIURPHYHU\SDUWRIWKHFLUFXPIHUHQFH WKH PRGHO RI SHUIHFW V\PPHWU\ 'XELRXVO\ K\SRWKHWLFDO DV LW PD\ DSSHDURQDVXSHUÀFLDOOHYHOWKLVLVDSHUIHFWLQGLFDWLRQRIWKHHTXDOLW\ DQG V\PPHWU\ RI FRVPLF V\PSDWK\ 7KLV FRXOG EH PRUH VSHFLÀFDOO\ GHPRQVWUDWHGLQWHUPVRIWKHVXQOLJKWWKDWIDOOVXSRQWKHJUDGHGFRVPRV 5HIHUHQFHWRWKHVXQDQGVXQOLJKWLVQXPHURXVLQERRN,,RI7KH1DWXUH RI WKH *RGV ,WV ÀUH PRWLRQ OLJKW HQJHQGHU DQ LQHIIDEOH VXSHULRULW\ DQDORJRXV WR WKH VXSHULRULW\ RI WKH VLQJOH PLQG 7KLV DVWUDO SKHQRPHQD RFFXS\LQJWKHKLJKHVWHWKHUHDOSODQHUHSUHVHQWVWKHYDULHGSRVLWLRQVRI OLJKWGLVWLOOHGIURPWKHKLJKHVWVRXUFHRIOLJKWWKHVXSUHPHVWVRXUFHRI UDGLDQFHWKHXQLYHUVDOÀUHSHUHQQLDOVXEVWDQFHRIFRVPLFLOOXPLQDWLRQ LVLOOXVWUDWLYHRIWKHYDU\LQJSRVLWLRQV RIWKHPRRQDQGWKHSODQHWVFRQFHLYHGDVSRVLWLRQHGLQWKHORZHVWVWUDWD RIWKHJUDGHGFRVPRVLQUHODWLRQWRWKHVXQZKLFK 5HÁHFWVXSRQWKHHDUWKWKHOLJKWVKHGRQLWE\WKHVXQD OLJKWWKDWYDULHVZLWKLWVRZQSKDVHV:KHQWKHPRRQLV GLUHFWO\EHORZDQGRSSRVLWHWKHVXQLWWRWDOO\REVFXUHVLWV UDGLDQFH6RPHWLPHVWRWKHPRRQZKHQLWLVRSSRVLWHWKH VXQSDVVHVLQWRWKHVKDGRZRIWKHHDUWKVRWKDWLWVRZQOLJKW LVVXGGHQO\HFOLSVHG,QWKHVDPHFRXUVHVWKHSODQHWVFLUFOH DURXQGWKHHDUWKDQGLQWKHVDPHZD\WKH\UDLVHDQGVHWQRZ TXLFNHUDQGQRZVORZHULQWKHLUPRWLRQVDQGVRPHWLPHV DOWRJHWKHUVWLOO 7KHOLQHVUHÁHFWDQDIÀQLW\WRKHQRWKHLVPGHVLJQDWLQJDKDUPRQLRXV XQLWDU\SDWWHUQLQWKHDUUDQJHPHQWRIKHDYHQO\ERGLHV7KHWHUPLQRORJ\ XVHGWRGHVFULEHWKHHIÀFDF\RIWKHVLQJOHPLQGLQWHUPVRILWVSRVLWLRQ DQG PRWLRQ TXDOLÀHV KHQRWKHLVP WR D JUHDWHU GHJUHH WKDQ LW GRHV PRQRWKHLVP7KHGHÀQDEOHDQGNQRZDEOHGHLWLHVFRQFHSWXDOL]HGDVWKH PRRQDQGSODQHWVDUHRIWHQUHIHUUHGWRLQPRGHUQWKHRORJLFDOUHVHDUFKDV ´H[HFXWRUVDQGPDQLIHVWDWLRQVRIGLYLQHZLOOUDWKHUWKDQLQGHSHQGHQWSULQFLSOHV RIUHDOLW\µ$WKDQDVLVLDGL)UHGH7KH\FROOHFWLYHO\UHSUHVHQW WKHGLYLQHZLOOZKLFKDSSDUHQWO\LGHQWLI\WKHVXSUHPHGLYLQHEHLQJRQO\ 7KHVH¶H[HFXWRUV·RQO\UHVHPEOHWKHVXSUHPHGLYLQHEHLQJLQPLQLDWXUH 7KHLUIXQFWLRQVGRQRWGLVUXSWWKHFRVPLFRUJDQL]DWLRQ $GGLWLRQDOO\&LFHURH[FOXGHVDQ\UHIHUHQFHWRFKDQFH IURPKLVFRVPLFFRQVWUXFWLRQ7KLVZRXOGEHDGHOLEHUDWH PHDVXUHWDNHQWRFRQÀUPWKHSRO\WKHLVWLFOHJDF\RIWKHGLVFXVVLRQZLWKLQ 'LVFXVLRQHV)LORVyÀFDV$xR1HQHUR²MXQLRSS $//86,21672+(127+(,60$1'02127+(,60,1&,&(52·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ÀOOV&LFHUR·VUHTXLUHPHQWRIDFRQFHSWLRQRIDVLQJOHPLQGRQZKRP GHSHQGVWKHIXQFWLRQVDQGRSHUDWLRQVRIWKHGLYLQHJRYHUQPHQWLQLWV WRWDOLW\ D ERG\ RI FRQVWLWXHQWV DSSOLFDEOH WR KLV RZQ REVHVVLRQ RI D XQLYHUVDOOHJLVODWLRQ/DZV5HSXEOLF'H2IÀFLLV $GPLQLVWUDWLRQ 7KH DUJXPHQWDWLRQ IURP WR DFNQRZOHGJH DQ H[XOWHG VXSUHPHGLYLQHEHLQJDVDSRWHQWLDOHQWLW\DFTXDLQWLQJWKHWUDGLWLRQDO FDQRQL]DWLRQ RI WKH GLYLQH LPEXLQJ GHQRPLQDWLRQV 7KH PXWXDO FRUUHVSRQGHQFHEHWZHHQWKHVLQJOHPLQGDQGVXERUGLQDWHRQWRORJLFDO VRXUFHVRIUHDOLW\UHÁ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ÀOOXSWKHODPHQWDEOH ,VKD*DPODWK YRLG LQ 5RPDQ OHJLVODWLRQ DV ZHOO DV WKH WHUULWRULDO H[SDQVLRQ RI WKH HPSLUH 7KH HQIRUFHPHQW RI D XQLYHUVDO OHJLVODWLRQ FRQFHQWUDWLQJ RQ WKH FXOWLYDWLRQ RI MXVWLFH FRPSHOOLQJ HYLO DV SRVWXODWHG ZLWKLQ WKH WKHRORJLFDOIUDPHZRUNRIERRN,,RI7KH1DWXUHRIWKH*RGVLVLQGLFDWLYH RI&LFHUR·VSURJUDPPDWLFLQWHQWLRQV +HUHIHUVWRDQDUUD\RISKHQRPHQDDQGLQFLGHQWVLQQDWXUHQRXULVKPHQW RI YHJHWDWLRQ DQG DQLPDOV UHDULQJ RI DQLPDOV ELUGV DQG DPSKLELDQV FOLPDFWLF FRQGLWLRQV GLYLVLRQRIJHQGHUFXULQJGLVHDVHVDPRQJDQLPDOV SURWHFWLRQRIYHJHWDWLRQPRGHVRISRVWXUHVRIDQLPDOV )LQDOO\ KH DUULYHV DW WKH FRQFOXVLRQ WKDW ´HYHU\WKLQJ LQ WKH ZRUOG LV PDUYHORXVO\ RUGHUHG E\ GLYLQH SURYLGHQFH DQG ZLVGRP IRU WKH VDIHW\DQGSURWHFWLRQRIXVDOOµ6LPLODUUHIHUHQFHVWRWKHFDUH RI WKH VXSUHPH GLYLQH EHLQJ DUH DOVR PDGH DW 6XFK GLYLQH JRYHUQDQFH WKHQ LV DSSOLFDEOH IRU &LFHUR·VOHJLVODWLYHUHTXLUHPHQWVSURYLGHGWKDWLWHOLPLQDWHVDOOWKDWLV PDOHÀFHQWHYLOHJRLVWLF,WDOVREULQJVWROLJKWDFRQFXUUHQFHEHWZHHQ WKHGHFLGHGO\PRQRWKHLVWLFDQGKHQRWKHLVWLFSRVLWLRQZLWKLQERRN,,RI KLVFRUSXVLQWKHVHQVHWKDWWKHIRUPHUDOLJQVWRDVWULFWVLQJOHUXOHZKLOH WKHODWWHUÀQGVDIÀQLWLHVZLWKDKDUPRQLRXVUXOHRIDOOWKHFRQVWLWXHQWV RIWKHFRVPRVWKXVIRUPLQJDXQLW\DPLGVWWKHWRWDOLW\7KHIRUPHULV HPSKDWLFDOO\ LGHDOL]HG ZKLOH WKH ODWWHU GHYLDWHV LWVHOI IURP DQ\ VXFK OLPLWDWLRQVDQGIXQFWLRQVPRUHLQDFFRUGDQFHZLWK&LFHUR·VWKHRORJLFDO VWDQGSRLQWJLYLQJULVHWRWKHFRQFHSWLRQRIDFRPPRQODZJHQHUDWLQJ DXQLYHUVDOOHJLVODWLRQIRUWKHFRVPLFSURJHQ\7KLVFRXOGEHH[SODLQHG LQWHUPVRIWKHDGPLQLVWUDWLRQRIWKHVLQJOH0LQGDQGDGPLQLVWUDWLYH GHYLFHVGHVLJQHGDVDWRWDOLW\RIWKHJRYHUQDQFHPDQLIHVWHGDVLWVRZQ H[SUHVVLRQV 7KHDUFKHW\SDOSULQFLSOHVUHVLGLQJLQKLHUDUFKLFOHYHOVRIWKHFRVPRVDV YDU\LQJH[SUHVVLRQVRIWKHVXSUHPHGLYLQHEHLQJIXOÀOOWKHLUGHPLXUJLF UROHVDVVLJQHGWRWKHPDVDPDUNRIVXEPLVVLRQWRGLYLQHODZ 7KH DVVLJQDWLRQ RI GXWLHV LV SURYLGHQWLDOO\GRQHZLWKWKHLQYROYHPHQWRIWKHVXSUHPHGLYLQHEHLQJ FRQFHSWXDOL]HG DV QDWXUH 7KH NLQVKLS EHWZHHQWKHYDULHGDUFKHW\SDOHQWLWLHVZLWKWKHFHQWUDOGLYLQHSRZHU LVSUHRUGDLQHG7KLVLQFLGHQWDOO\LVDYLWDOTXDOLÀFDWLRQRI SRO\WKHLVPWKDWOLHVDWWKHURRWRIKHQRWKHLVP8VWLQRYD DOVR,RQEG0HQRFG 'LVFXVLRQHV)LORVyÀFDV$xR1HQHUR²MXQLRSS $//86,21672+(127+(,60$1'02127+(,60,1&,&(52·6%22.,,2)7+(1$785(2)7+(*2'6 7KDWWKHFLFHURQLDQDUFKHW\SDOSULQFLSOHVZKRGHULYHPRWLRQ PLQGRUGHUSRZHUIURPWKH KLJKHVWRQWRORJLFDOVRXUFHRIZLVGRPUHDVRQDQGSRZHUFRQFHSWXDOL]HG DVDVXSUHPHGLYLQHEHLQJFROOHFWLYHO\HVWDEOLVKWKHSHUSHWXDWLRQRIWKH FRVPRVLVDGHTXDWHWHVWLPRQ\IRU&LFHUR·VKHQRWKHLVWLFFODLPVZLWKLQ ERRN ,, RI 7KH 1DWXUH RI WKH *RGV ,Q GHWHUPLQLQJ WKH GHJUHHVRIDOOXVLRQVWRKHQRWKHLVPZLWKLQLWVWKHRORJLFDOIUDPHZRUNLWLV QHFHVVDU\WRH[DPLQHWKHH[WHQWWRZKLFK&LFHURDFFHSWVWKHSRO\WKHLVWLF SDQWKHRQ-XSLWHU-XQR.URQRV1HSWXQH3HUVHSKRQHDQG9HVWD 'HVSLWH WKH WHUPLQRORJLFDO YDULDWLRQV LQ WKHLU UHVSHFWLYH QDPHV WKH\ GHPRQVWUDWHWKHLUFRPPXQLFDWLRQZLWKWKHRULJLQDOVRXUFHRIJHQHUDWLRQ DQGZLVGRP7KLVVRXUFHLVFRQFHDOHGWKRXJKLWSHUSHWXDWHV WKHFRVPLFVWUXFWXUH7KLVFDQEHFODULÀHGLQWHUPVRIWKHLU DEVRUSWLRQ RI WKH SULPRUGLDO ÀUH 7KH QDPHV RI WKH SODQHWV UHSUHVHQWWKLVDEVRUSWLRQ6DWXUQLVWKHVKLQLQJRQH-XSLWHUWKHEOD]LQJ RQH0HUFXU\WKHJOHDPLQJRQH9HQXVWKHOLJKWEHDUHU 7KLVFODULÀFDWLRQOHQGVVXSSRUWWRWKHK\SRWKHVLVWKDWHDFKSODQHWDU\ HQWLW\LVGUHQFKHGZLWKWKHFRVPLFV\PSDWK\WKDWHYROYHVWKURXJKRXW WKHFRVPLFFLUFXLWLQWKHIRUPRIÀ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ÀHV WKDW QR SODQHW LV PDOHÀFHQW DVLWVGLYLQHSRWHQF\LVLQWHQVLÀHGWKURXJKWKHFRQFHQWULFVSKHUHVLQ YDU\LQJGHJUHHV7KHVHGHJUHHVGRQRWUHSUHVHQWDGHPDUFDWLRQEHWZHHQ KLJKHUDQGORZHUVLQFH&LFHUR·VWKHRORJLFDOGHIHQVHRIWKHFRQWH[WXDO IUDPHZRUNZLWKLQERRN,,RI7KH1DWXUHRIWKH*RGVGRHVQRWSHUPLWD VWULFWSRODUL]DWLRQEHWZHHQWKHVXSUHPHGLYLQHEHLQJDQGWKHVHFRQGDU\ LQWHOOLJHQFHV 'HULYDWLRQ RI FRVPLFOXPLQRVLW\ LV D PRVW FRQVSLFXRXV IHDWXUH RI DQFLHQW SRO\WKHLVP DQG WKH GHJUHHV RI LWV HIÀFDF\ LV PRVW ,VKD*DPODWK YLYLGO\ UHSUHVHQWHG LQ PRGHUQ VFKRODUO\ UHVHDUFK 9HWHUDQ VFKRODU $QJHOD9RVVLQYHVWLJDWHV6DWXUQ·VLQPRVWSRWHQWLDOIRUWKHGLVFRYHU\ RILQWHOOHFWXDOJHQLXVDVZHOODVVXEVHTXHQWVWDJHVRIGLYLQHUHFHSWLRQ 9RVV7KHHIÀFDF\RIWKHUHFHSWLRQRIGLYLQH V\PEROVZLWKLQDSRO\WKHLVWLFFRQWH[WWUDQVFHQGVDOOOHYHOVRIUHFHSWLRQRI GLYLQHZLVGRPEHFDXVHLWLVDQH[SUHVVLRQRIWKHPDQLIROGSUHSRVLWLRQV RIWKHXOWLPDWHFHOHVWLDOZLVGRP*DPODWK,WDOVRLQGLFDWHV WKDWWKHGHULYDWLRQRIFRVPLFHIÀFDF\LVYDULHG >«@WKHSODQHWVUHSUHVHQWDV\PSKRQ\RIGLIIHUHQWPRWLRQV ZKHUHLQ6DWXUQDERYHIUHH]HVZLWKFROG0DUVÁDPHVZLWK ÀUH LQ WKH PLGGOH DQG EHWZHHQ WKHP -XSLWHU VKHGV KLV JHQLDOOLJKW%HORZ0DUVDUHWZRRWKHUVZKLFKDUHVDWHOOLWHV RIWKHVXQ7KHVXQLWVHOIVKHGVLWVUDGLDQFHRYHUWKHZKROH ZRUOGDQGWKHPRRQZLWKLWVUHÁHFWHGOLJKWSUHVLGHVRYHU SUHJQDQFLHVDQGELUWKVDQGEULQJVDOOWKLQJVWRIUXLWLRQLQ GXHVHDVRQ 7KHRUGHURISUHFHGHQFHLQHQOLJKWHQPHQWGHSHQGVRQWKHVXFFHVVLYH PDQLIHVWDWLRQVRIWKHOLJKWRIWKHVXQ (DUWKWKHORZHVWUHDOPLQWKHFRVPLFVWUXFWXUHDQGIDUWKHVWDZD\IURP &LFHUR·VVXSUHPHGLYLQHEHLQJ7KHGHJUHHRIUHFHSWLRQ RI FRVPLF V\PSDWK\ RI WKRVH UHVLGLQJ RQ HDUWK LV IDU LQIHULRU WR WKDW RIWKHHQWLWLHVRFFXS\LQJWKHÀQHUUHDOPV5HODWHGOLWHUDWXUH SURYLGHVLQYDOXDEOHWHVWLPRQ\IRUWKRVHGHJUHHVRIUHFHSWLRQRIFRVPLF LOOXPLQDWLRQ3OXWDUFKGEDO3RUSK\U\ 'H$EVWLQHQWLD3OXWDUFK&RQFHUQLQJWKHIDFHZKLFKDSSHDUVLQ WKHRUERIWKH0RRQG,DPEOLFKXV7KHVHGHJUHHV RIUHFHSWLRQHQGXUHWKHFULWLTXHRIQRQSDJDQDSRORJLVWVOLNH$XJXVWLQH RI +LSSR IURP ZKRVH SURPRWLRQ RI DQ H[WUHPH W\SH RI PRQRWKHLVP DELGLQJE\VDFUHGVFULSWXUHVLVH[DFWO\WKHSRLQWRI&LFHUR·VGHSDUWXUH &LW\ RI *RG L[L[ 2Q )UHH :LOO , ,, , $XJXVWLQH·V FRQGHPQDWLRQ RI GLYLQH KLHUDUFKLHV DQG WKH GLYLQH GLYLVLRQ RI ODERU GLVWLQJXLVKWKHFXOWRIWKHRQHRUWKHDXWKRULW\RIDVLQJOHPLQGIURP RSHUDGLHRUIDOVHJRGV&LW\RI*RG+HUHMHFWVWKHFLFHURQLDQ FRQFHSWLRQRIDVLQJOHFRPPRQZHDOWKZLWKLWVFODLPRQWKHZHOIDUHRIWKH HPSLUHLQWHUPVRIDPRQRWKHLVWLFIRXQGHU*RGZKRVHGLYLQHDXWKRULW\ HQVXUHVWKHULVHRIKXPDQNLQGIURPWKHLUGHSORUDEOHHDUWKO\VWDWHDQGWKH ZRUVKLSRIHYDQHVFHQWGHPRQV*RGLVXQLTXHLQWHUPVRILWV YLUWXHDQGLPSOLFDWLRQWKDWWKHH[WUHPHW\SHRIYLUWXHLVQRQHRWKHUWKDQ 'LVFXVLRQHV)LORVyÀFDV$xR1HQHUR²MXQLRSS $//86,21672+(127+(,60$1'02127+(,60,1&,&(52·6%22.,,2)7+(1$785(2)7+(*2'6 WKH&KULVWLDQ[LY7KHPRQRWKHLVWLFHQWLW\WKDW$XJXVWLQHDFFHSWV DVWKHPRVWVXEOLPHLVE\QRPHDQVLQFRPSDWLEOHZLWKWKDWRIWKHOHVVHU HQWLWLHV$SRLQWRIDJUHHPHQWLQFORVHSDUDOOHOWRWKHHPLVVLRQRI FRVPLFV\PSDWK\LQWKHIRUPRIKHDWDQGOLJKWWKXVFRPPLQJOLQJGLYLQH KLHUDUFKLHVRFFXS\LQJKLJKHUDQGORZHUFRVPLFUHJLRQVLQDV\QFUHWLFLVP LVUHDFKHGLQ$XJXVWLQHV·GHSROHUL]DWLRQRIPRQRWKHLVPDQGSRO\WKHLVP 7KLVLVFODULÀHGZKHQKHPHQWLRQVRIDQJHOLFHQWLWLHVWKDWKDYHDFFHVV WRDQGDUHDGHTXDWHO\LOOXPLQDWHGE\WKHÀQHVWRIGLYLQHOLJKW 2QO\ +H DQG QRERG\ HOVH GHVHUYH VDFULÀFH DQG YHQHUDWLRQ [ $XJXVWLQH·V DGPLUDWLRQ LV FRQÀQHG WR WKH DOPLJKW\ VXSUHPH FUHDWRU ZKRSUHYHQWVWKHZLFNHGWRDV[L[ +HUHMHFWVWKHFRQVWLWXHQWFRPSRQHQWVRIWKHFRVPRV6WLOOKHFODVVLÀHV WZR EURDG OLPLWDWLRQV LQ KLV PRQRWKHLVWLF IUDPHZRUN ZKLFK DUH V\QRQ\PRXVZLWKKHQRWKHLVPDQGSRO\WKHLVPWKH&UHDWHURU2QH*RG &LW\RI*RG*DQGWKH&UHDWHGRUPDQ\JRGV&LW\ RI*RG7KLVFODVVLÀFDWLRQHQJHQGHUV$XJXVWLQH·VDWWHPSW WRPLQLPL]HWKHFRQWUDSRVLWLRQEHWZHHQPRQRWKLHVWVLQODWHDQWLTXLW\ DQGQHRSODWRQLFSDJDQV$WKDQDVULDGLDQG)UHGH:KDWHYHU WKHSURJUDPPDWLFGHVLJQVRI$XJXVWLQH·VDUH&LFHURLVQRDQWDJRQLVWRI SRO\WKHLVP$GHWDLOHGVXFFHVVLRQRIGXWLHVHSLSKDQLHVHSLWKHWVDQG UHZDUGVFRQIHUUHGXSRQPDQNLQGE\SRO\WKHLVWLFGHLWLHVIURP DQGFRQÀUPVLW7KDWKHFRQVWUXFWVKLVWKHRORJLFDOSRVLWLRQLQWR DFRKHUHQWV\VWHPDVVRFLDWLQJERWKPRQRWKHLVPDQGKHQRWKHLVPXSRQ WKHHVWDEOLVKHGD[LRPVEHFRPHVFOHDUHULQKLVGHFODUDWLRQRIP\WKRORJLFDO DQGDOOHJRULFDOFRQÀJXUDWLRQVRIWKHGLYLQH 6RZHRXJKWWRZRUVKLSDQGUHYHUHWKHVHJRGVHDFKLQWKHLU RZQSHUVRQDQGWKHLURZQQDWXUHXQGHUWKHQDPHVZKLFK FXVWRP KDV EHVWRZHG XSRQ WKHP 6XFK ZRUVKLS RI WKH JRGVLVWKHEHVWRIDOOWKLQJVIXOORISXULW\DQGKROLQHVVDQG SLHW\LIRXUUHYHUHQFHLVDOZD\VWUXHDQGZKROHDQGSXUH LQZRUGDQGWKRXJKW,WZDVQRWRQO\WKHSKLORVRSKHUVEXW DOVRRXURZQDQFHVWRUVZKRWKXVGLVWLQJXLVKHGEHWZHHQ WUXHUHOLJLRQDQGWKHIROOLHVRIVXSHUVWLWLRQ 7KHGLVWLQFWLRQEHWZHHQ¶WUXHUHOLJLRQ·DQG¶VXSHUVWLWLRQ·MXVWLÀHVWKH H[LVWHQFHDQGIXQFWLRQRIWKHVXSUHPHGLYLQHEHLQJZLWKLQDWKHRORJLFDO FRQWH[W,WWUDQVFHQGVWKHH[LVWHQFHDQGIXQFWLRQRIWKHFRQJUHJDWLRQRI SRO\WKHLVWLFGHLWLHV%\UHFRJQL]LQJWKHGHÀQDEOHDQGNQRZDEOHJRGV ZKRDUHUHSUHVHQWHGDVVXQPRRQVWDUVVHDVRQVSODQHWVGD\DQGQLJKW ,VKD*DPODWK RQHLVDSWWRKRQRUWKHXOWLPDWHÀUVWFDXVHWKHKHLVWKHRVRUKHLVK\VLVWRV FRQFHSWXDOL]HGDVWKHVXSUHPHGLYLQHEHLQJ 5HZDUGV 7KH LQWHU UHODWLRQ EHWZHHQ &LFHUR·V WKHRORJLFDO DSSUHKHQVLRQ RI D VXSUHPH GLYLQH EHLQJ DQG WKH UHZDUGV FRQIHUUHG XSRQ KXPDQNLQG DSSOLHV PRUH WR KHQRWKHLVP WKDQ WR PRQRWKHLVP 7KH &OHDQWKHDQ FDWHJRUL]DWLRQRIWKHIRXULQVWDQFHVLVWHVWLPRQ\IRUGLYLQHSUHVHQFH SURJQRVWLFDWLRQVDPLDEOHQDWXUDOSKHQRPHQDWHUULI\LQJPRYHPHQWVRI KHDYHQDQGHDUWKDQGWKHUHJXODUO\RIWKHPRYHPHQWVRIKHDYHQO\ERGLHV 7KHODVWLVHPLQHQWLQWHUPVRILWVRQWRORJLFDOJHQHVLV LQWHJUDWHGLQWRGLYLQDWLRQ,QYDOXDEOHVLJQLÀFDQFHLV DZDUGHGWRGLYLQDWLRQLQDQFLHQWVRXUFHV,DPEOLFKXV2QWKH0\VWHULHV [ +HUPHLDV ,Q 3KDHGUXP IU 3URFOXV (OHPHQWV RI 7KHRORJ\ ,W KDV EHHQ WKH WRSLF RI GLVFXVVLRQ DPRQJ VFKRODUV ZKR QRWLFH LWV LQVSLUDWLRQDOGLPHQVLRQVVHH0D]XU6KDZ %DUWRQ)ROORZLQJDVLPLODUFXUUHQWRIWKRXJKW &LFHURHQJDJHVLQDGHWDLOHGGLVFXVVLRQRIWKHEHQHÀWVFRQIHUUHGXSRQ KXPDQNLQGIURPWR+HQH[WGUDZVDWWHQWLRQWRWKH SRVLWLRQDQGVWUXFWXUHRIWKHKXPDQH\HVWKDWJUDQWWKHSRVVLELOLW\RI REVHUYDWLRQRIWKHEHDXW\RUGHUDQGSURSULHW\RIWKHUHYROXWLRQRIWKH FRVPRVWKHPHGLXPRIGLVSHQVLQJGLYLQDWLRQ :LWKSRVLWLYHDOOXVLRQVWR7LPDHXVFEDQGEG&LFHURDSSHDUV WREHYLUWXDOO\SDUDSKUDVLQJ3ODWRDVIDUDVWKHVLJQLÀFDQFHDZDUGHGWR KXPDQ YLVLRQ $ FRUROODU\ DSSHUWDLQLQJ WR KXPDQ YLVLRQ LVWKHFRQWHPSODWLRQRIGLYLQHSUHVHQFHLQWKHIRUPRISURSKHF\DQG UHYHODWLRQVWKURXJKWKHPHGLXPRIGLYLQDWLRQ7KHVWXG\RI DVWURQRP\DVDIRUPRIGLYLQDWLRQLVLQYHVWLJDWHGZLWKLQWKHFRQWH[WRI DQG7KHIROORZLQJLVLQGLFDWLYHRIKLVUHIXWDWLRQRI GLYLQHSURSKHF\LQWHUPVRILWVVXEOLPLW\HIÀFDF\VXSHULRULW\ 0DQ\ WKLQJV KDYH EHHQ UHYHDOHG WR VHHUV DQG UHWROG E\ SURSKHWV0DQ\HYHQWVKDYHEHHQIRUHVKDGRZHGE\RUDFOHV VRRWKVD\LQJVGUHDPVDQGRPHQV0HQKDYHRIWHQGHULYHG EHQHÀWIURPNQRZOHGJHRIWKHVHDUWVDQGDYRLGHGPDQ\ GDQJHUV7KHSRZHURUDUWRUQDWXUDOJLIWRISURSKHF\KDV EHHQ FRQIHUUHG XSRQ 0DQ DORQH E\ WKH LPPRUWDO JRGV 'LVFXVLRQHV)LORVyÀFDV$xR1HQHUR²MXQLRSS $//86,21672+(127+(,60$1'02127+(,60,1&,&(52·6%22.,,2)7+(1$785(2)7+(*2'6 ,QUHODWLRQWRWKLVSRLQW&LFHURFRQWHQGVWKDWGLYLQDWLRQLVDPRQJPHDQV RIDFTXLULQJHWKLFDOJRRGQHVVGLVWLOOHGIURPWKHVXSUHPHGLYLQHEHLQJ $V D SURYLGHQWLDO DQG VLQJXODU SULQFLSOH HQFDSVXODWLQJ HYHQ WKH ORZHVW KLHUDUFKLF HQWLW\ KXPDQNLQG WKLV VXSUHPH GLYLQH EHLQJSHUPLWVV\QFURQL]DWLRQRIWKHVRXOVRWKDWDQDJRJLFXQLRQWXUQV RXWWREHDUHDOLW\7KHDVFHQWRIWKHKXPDQVRXOE\PHDQVRIGLYLQDWLRQ LVDEHQHÀWEHVWRZHGXSRQKXPDQNLQG0DQWLNH WHFKQH GLYLQDWLRQ DQG KHWKHLD PDQWLNH RU GLYLQH SURSKHF\ ILJXUH V\PEROLFDOO\LQDQDJRLFVWDJHV5HIHUHQFH WRYLVLRQDVDGLYLQHJLIWLVPDGHLQ7LPDHXVFGEG'/ 3KDHGUXVFF7KHGLYLQHJLIWRIYLVLRQWKDWSURYLGHQWLDOO\ VXSSOHPHQWFRPPXQLRQZLWKWKHSHUIHFWDQGÀQHVWVRXUFHVRIZLVGRP EHQHÀ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·VDFNQRZOHGJHPHQW RIWKHLJQRUDQFHRIVHFRQGDU\GLYLQHKLHUDUFKLHV$XJXVWLQH·VGHULVLRQ RI&LFHUR·VUHSUHVHQWDWLRQRIWKHGLYLQHLVEURXJKWRXWLQKLVDSSDUHQW GHPRQL]DWLRQRISDJDQGHLWLHV,WLVWKLVPLVFRQFHSWLRQWKDW VHYHUHO\ FRQWUDGLFWV &LFHUR·V WKHRORJLFDO DVVHVVPHQW RI WKH GLYLQH ZKLFKKDVDOOXVLRQVPRUHWRKHQRWKHLVPWKDQWRWKHW\SHRIVFULSWXUDO PRQRWKHLVPDGYRFDWHGE\$XJXVWLQH 7KHFOLPD[RIWKHFLFHURQLDQFRQFHSWLRQRIWKHGLYLQHZKLFKDOOXGHVWR KHQRWKHLVPUHÁHFWVDIHDWXUHXQLTXHWRLWVUHOLJLRXVIHUPHQWDWLRQDQGWKLV LVQRQHRWKHUWKDQDVWUDOLPPRUWDOLW\RUWKHDVFHQWRIWKHSXULÀHGVRXO WRLWVSULVWLQHRULJLQ &IU'UHDPRI6FLSLR7KHDWWXQHPHQW RU V\QFKURQL]DWLRQ RI WKH KXPDQ VRXO ZLWK WKH VXEWOH UHDOP RI WKH SV\FKRSK\VLFDOGRPDLQWKXVOLWHUDOO\HQIRUPLQJWKHWRWDOLW\RIFRVPLF V\PSDWK\UHÁHFWV&LFHUR·VUHSUHVHQWDWLRQRIWKHFKDUDFWHURIWKHGLYLQH LQWHUPVRIWKHEHQHÀWVDQGUHZDUGFRQIHUUHGXSRQKXPDQNLQG 7KLVFDUHWKLVDWWHQWLRQEHVWRZHGXSRQKXPDQNLQGLVSURRIRI WKHSODXVLELOLW\RIWKHVRXO·VV\QFUHWLFLVPZLWKWKHKLJKHVWGLYLQHVRXUFH RIZLVGRPVXSUHPHGLYLQHEHLQJLWVVLQJOHPLQGDQGLWVDGPLQLVWUDWLRQ DQGLWVJLIWV$OOWKHVHFRQWULEXWHWRWKHUHIXWDWLRQRIWKHGLYLQHPRUHLQ UHODWLRQWRKHQRWKHLVPZLWKLQERRN,,RI7KH1DWXUHRIWKH*RGV 7KH DXWKRU WKDQNV 3DXO 6FDGH DQG &U\VWDO $GGH\ 8. IRU WKHLU LQYDOXDEOHVXSSRUWLQSURGXFLQJWKLVSDSHU 5()(5(1&(6 $660$1-0DSLVQRWWHUULWRU\/HLGHQ%ULOO BBBBBBBB´0RQRWKHLVPDQG3RO\WKHLVPµ,Q-2+167216/ (G 5HOLJLRQV RI WKH DQFLHQW ZRUOG &DPEULGJH 7KH %HONQDS 3UHVV RI +DUYDUG8QLYHUVLW\3UHVV $7+$1$66,$',3´'UHDPVWKHXUJ\DQGIUHHODQFHGLYLQDWLRQ WKHWHVWLPRQ\RI,DPEOLFKXVµ,Q-RXUQDORI5RPDQ6WXGLHV1R/RQGRQ 6RFLHW\IRUWKH3URPRWLRQRI5RPDQ6WXGLHV $7+$1$66,$', 3 )5('( 0 3DJDQ PRQRWKHLP LQ ODWH $QWLTXLW\2[IRUG8QLYHUVLW\3UHVV $8*867,1(&LW\RI*RG%HWWHQVRQ+7U8QLWHG.LQJGRP %XQJD\DQG6XIIRON %$51(6 7 ´0RQRWKHVWLV DOO"µ ,Q 3KRHQL[ 7RURQWR 'LVFXVLRQHV)LORVyÀFDV$xR1HQHUR²MXQLRSS $//86,21672+(127+(,60$1'02127+(,60,1&,&(52·6%22.,,2)7+(1$785(2)7+(*2'6 &DVVLFDO$VVRFLDWLRQRI&DQDGD %$57217$QFLHQW$VWURORJ\/RQGRQDQG1HZ<RUN5RXWOHGJH %(7(*+ * ´&RVPRORJLFDO HWKLFV LQ WKH 7LPDHXV DQG HDUO\ VWRLFLVPµ ,Q 2[IRUG VWXGLHV LQ DQFLHQW SKLORVRSK\ 9RO ;;,9 2[IRUG 8QLYHUVLW\3UHVV &,&(52 'H 'LYLQDWLRQH )DOFRQ 1 $ 7U &DPEULGJH 8QLYHUVLW\3UHVV BBBBBBBB 5HSXEOLF .H\HV & $ 7U 1HZ <RUN +DUYDUG 8QLYHUVLW\3UHVV BBBBBBBB/DZV.H\HV&$7U1HZ<RUN+DUYDUG8QLYHUVLW\ 3UHVV BBBBBBBB´'UHDPRI6FLSLRµ,Q2QWKHJRRGOLIH5LHX97U /RQGRQ3HQJXLQ%RRNV/WG BBBBBBBB´'HRIÀFLLVµ,Q2QWKHJRRGOLIH*UDQW07U%XFNV· /WG BBBBBBBB7KH1DWXUHRIWKH*RGV+RUDFH&0F*UHJRU37UV 8QLWHG.LQJGRP+D]HOO:DWVRQDQG9LQH\ &251(/,(86 * 0RPHQW RI DVWURORJ\ RULJLQ LQ GLYLQDWLRQ /RQGRQ3HQJXLQ%RRNV/WG )2:'(1 * ´&RQVWDQWLQH·V SRUSK\U\ FROXPQ WKH HDUOLHVW OLWHUDU\DOOXVLRQµ,Q-RXUQDORI5RPDQVWXGLHV/RQGRQ6RFLHW\IRUWKH 3URPRWLRQRI5RPDQ6WXGLHV *$0/$7+ , 5HFHSWLRQ DQG WKH UHFHSWLYH LQ ,DPEOLFKXV 2Q WKH P\VWHULHV,QGLD'LY\DGDQ *$0/$7+ , $''(< & IRUWKFRPLQJ ´'DLPRQHV GLYLQDWLRQDQGSRO\WKHLVPLQ3OXWDUFK·VPRUDOLDµ3DSHUSUHVHQWHGDW WKH7KHRORJ\DQG5HOLJLRXV6WXGLHV3RVWJUDGXDWH'D\&RQIHUHQFH(QJODQG 8QLYHUVLW\RI%ULVWRO */$',*2:%3RO\WKHLVP6WXWWJDUW%HUOLQ.ROQ +$+1 ' 7KH RULJLQV RI 6WRLF FRVPRORJ\ 2KLR 2KLR 6WDWH 8QLYHUVLW\3UHVV ,$0%/,&+862QWKHP\VWHULHV&ODUNH(&'LOORQ-07UV $WODQWD+HUVKEHOO 0$$6 0 5HDGLQJV LQ ODWH DQWLTXLW\ D VRXUFHERRN 1HZ <RUN +DUYDUG8QLYHUVLW\3UHVV 0$&'21$/'1´7KHRULJLQRIPRQRWKHLVPLQHDUO\-HZLVK DQG &KULVWLDQ PRQRWKHLVPµ ,Q 678&.(1 %58&. / 1257+ : (GV (DUO\ -HZLVK DQG &KULWLDQ PRQRWKHLVP /RQGRQ 77 &ODUN ,QWHUQDWLRQDO 0$<-´&LFHURµ,Q&ODVVLFDO5HYLHZ/RQGRQ7KH&ODVVLFDO $VVRFLDWLRQ ,VKD*DPODWK 0$=81=´8QLRPDJLFD,,3ORWLQXVWKHXUJ\DQGWKHTXHVWLRQ RIULWXDOµ,Q'LRQ\VRV&DQDGD 3253+<5< 2Q WKH DEVWLQHQFH RI DQLPDO IRRG 7D\ORU 7 7U /RQGRQ&HQWDXU3UHVV 32:(/ - 3$77(5621 - &LFHUR WKH DGYRFDWH 2[IRUG 8QLYHUVLW\3UHVV 3/$72'LDORJXHVRI3ODWR-RZHWW-7U1HZ<RUN&ODUHQGRQ 8QLYHUVLW\3UHVV 3/27,186(QQHDGV7D\ORU77U/RQGRQ 3/87$5&+2QWKHGHFOLQHRIRUDFOHV%DEELW)&7U/RQGRQ +DUYDUG8QLYHUVLW\3UHVV 6+$:*´(URVDQGDULWKPRV3\WKDJRUHDQWKHXUJ\µ,Q2[IRUG 6WXGLHVLQ$QFLHQW3KLORVRSK\1R2[IRUG8QLYHUVLW\3UHVV 6+(33$5'$´,DPEOLFKXVRQ,QVSLUDWLRQ'H0\VWHULHVµ ,Q%/8(0(17+$/+-&/$5.(*(GV7KH'LYLQH,DPEOLFKXV 3LORVRSKHUVDQGPDQRIJRGV/RQGRQ%ULVWRO&ODVVLFDO3UHVV 67$5.52QH7UXH*RG+LVWRULFDOFRQVHTXHQFHVRIPRQRWKHLVP 1HZ-HUVH\3ULQFHWRQ8QLYHUVLW\3UHVV 6752806$*´6KDSLQJWKHSHUVRQLQHDUO\&KULVWLDQWKRXJKWµ ,Q %DUEDULDQ SKLORVRSK\ 7KH UHOLJLRXV UHYROXWLRQ RI HDUO\ FKULVWLDQLW\ 7ELQJHQ0RKU6LHEHFN 9(561(/+,QFRQVLVWHQFLHVLQ*UHHNDQG5RPDQUHOLJLRQ9RO, /HLGHQ%ULOO 9266$´$VWURORJ\RI0DUVLOLR)LFLQRGLYLQDWLRQRUVFLHQFH"µ,Q &XOWXUHDQG&RVPRV%ULVWRO6RSKLD&HQWUHIRUWKH6WXG\RI&XOWXUDO $VWURQRP\DQG$VWURORJ\ BBBBBBBB´3RZHURIPHODQFKRO\KXPRXUµ,Q(VVD\RQDVWURORJ\ DQGGLYLQDWLRQ&DPEULGJH6FKRODUV3UHVV :$/5$)) 0 3DJDQ PRQRWKLVP LQ ODWH DQWLTXLW\ UHPDUNV RQ D UHFHQWSXEOLFDWLRQ,WDO\0HGLWHUUDQH$QWLFR 'LVFXVLRQHV)LORVyÀFDV$xR1HQHUR²MXQLRSS