Lake Town

December 2019
PDF

Download

This document was uploaded by user and they confirmed that they have the permission to share it. If you are author or own the copyright of this book, please report to us by using this DMCA report form. Report DMCA

Overview

Download & View Lake Town as PDF for free.

More details

Words: 58,588
Pages: 194

Preview
Full text

/$.(72:1

70

&5(',76 $XWKRU'HVLJQHU=DFKDULDK:RROI 6SHFLDO7KDQNVWR :&ORYLV'UHVND (GLWRU'HYHORSHU-HVVLFD1H\*ULPP (GLWRUV6X]DQQH
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

6WRFN

,6%1

7$%/(2)&217(176 ,1752'8&7,21

32/,7,&6 $1'32:(5 ,17$

(VJDURWKRQWKH/RQJ/DNH 8VLQJ/DNHWRZQ 7KH7HPSRUDO6HWWLQJ 61$5,1* 7+(608**/(56 7KH%RG\LQWKH:DWHU 7KH13&V 7KH6HWWLQJ 7KH7DVN 67$57,1* 7+(3/$<(56 $,'6 2%67$&/(6 5(:$5'6 (QFRXQWHUV 7+(&+$51(/+286(&2536( 7+(0,//(5 2)/21'$527+ 48(5,(6 21 7+(:(6725) 61223,1*$7 7+((5$1181 /$.(72:1 $+LVWRU\RI/DNHWRZQ 7KH7DOHRI
,QWHUQDO3ROLWLFVDQG3HRSOH $OOLHVRI/DNHWRZQ (QHPLHVRI/DNHWRZQ :$5&5$)7 7KH7RZQJXDUG 7KH7RZQ/HY\ (6*$527+ 'LVWULFWV 6WUHHWV %XLOGLQJV %8,/',1*6 2)127( $GPDQG*RYHUQPHQW%XLOGLQJV 0$(67$+8,/ 257+5$,1+8,/ +/$(67&$02/ *$2/785 &HQWHUVRI(QWHUWDLQPHQW 7+(92'$*$5$=81 7+((5$11817$)(1 *Ó0$·6 $1' 7+(:,7(+8,/ 98/)3/$(&+ 7+(1,813,11$6 7+(*52*+8,6 +HDKKXLVDQ 2'$*$9,$·6+($++8,6 5,*817+$·6+($++8,6 9250(15,&·6+($++8,6 &UDIW$WHOLHUVDQG5HWDLO0HUFKDQWV +(00,1*·6&2%%/(5< (250(1/,&·6:($32160,7+< )5('(*21'(·6&$1'/(6+23 83+(/%·6%$5%(56+23 $1'$327+(&$5< 9$/'25·6*(1(5$/6725( )2/*$5·67$11(5< +(5(:8/)·6&/27+'<(,1*:25.6+23 /,11/2&·6&2,160,7+< 2WKHU%XLOGLQJV :$(5+8,/$1 )2/&67($//$6 6KLS3ODQV &1($55$ 0(51$& 7+8558& 5,9(5%$5*( %XLOGLQJVLQ/RQGDURWKE\/LQGDO &,7$'(/ 2) 7+(0$(67$6 :$77/($1''$8%&277$*( /$.(72:1 ,127+(57,0(6

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

*DPHPDVWHU1RWHV 7+(/(*(1'$5<6e$+0$7+$ $LGWRWKH9LVFHUDV 7KH13&V 7KH6HWWLQJ 21 7+(/21*/$.( /$,5 2) 7+(6e$+0$7+$ 7KH7DVN (QFRXQWHUV 7+(6e$+0$7+$ 21 7+(/$.( ,1 7+(/$,5 *DPHPDVWHU1RWHV

$33(1',&(6 $EEUHYLDWLRQV &LWDWLRQV *ORVVDU\ 7$%/(6 0HUS5013&WDEOH 0DVWHU0LOLWDU\WDEOH 0DVWHU%HDVWWDEOH (QFRXQWHU7DEOHV &28175<6,'((1&2817(57$%/( /$.(72:1(1&2817(57$%/( 85%$1(1&2817(57$%/( (;&/8',1*/$.(72:1 +(5%663(&,$/3/$176(1&77$%/(

)LQGLQJ+HUEVDQG3RLVRQV +(5% $1'32,6216 ,1 7+(5(*,21 +(5%6(1&+$17(')22''5,1. $1' 32,6216 ',6($6( 7$%/(

3ULFHVDQG([FKDQJH 5$7(6 2)(;&+$1*( 35,&(6 ,1 7+(/$.(72:1$5($ /25&RQYHUVLRQ1RWHV /2&.6 75$36 0$*,&,7(06 ,7(06 2)127( 0RVW3RWHQW 3RWHQW 0RGHVW $'9(1785(68**(67,216 (;3/25,1*(6*$527+ 7KH/LWKH)DLU *XDUGLDQRIWKH*LEEHW $JDLQVWWKH*UXQGKHUG )LUH 7R&DWFKD6S\ *HQQL2IPHUH (PLVVDULHVWRWKH:RRGHOYHV $'9(1785(68**(67,216 (;3/25,1* 7+(5(*,21 +LJKZD\$PEXVK '<12'25,& 7+(&$9( $7'<12'25,& ,QWRWKH'HSWKVRI(UHERU $VVLVWLQJWKH*UDPX] 5DLGLQJ6XSSO\7UDLQV 6WLOO0RUH,GHDV

,1752'8&7,21 ´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´1RWIDUIURPWKHPRXWKRIWKH)RUHVW5LYHUZDVWKHVWUDQJH WRZQKHKHDUGWKHHOYHVVSHDNRILQWKHNLQJ·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µ ³ K_\?fYY`k# &KDSWHU;

(6*$527+21 7+(/21*/$.( 3HUFKHGDVWULGHWKH/RQJ/DNHRQD SODWIRUP DWRS WKLFN SLHUV GULYHQ LQWR WKHODNHERWWRP/DNHWRZQ(VJDURWK XSRQWKH:DWHUUHVWVMXVWRIIWKHJHQ WO\VORSHG ZHVWHUQ VKRUH 7KH :LOGHUODQGWUDGLQJWRZQRIWKH/DNH IRONLVQRZEHJLQQLQJLWVULVHDVDPDMRU FRPPHUFLDODQGFXOWXUDOFHQWHU&DUYHG VWDLQHG DQG SDLQWHG WLPEHUEXLOGLQJV OLQH LWV QDUURZ ZLQG\ VWUHHWV 5LVLQJ RQH WR WKUHH VWRULHV DERYH WKH VWRXW WRZQZKDUIVWKH\DUHJUDFHGZLWKEURDG HDYHVRUQDWHEDOFRQLHVDQGSURPLQHQW XSSHUVWRULHVQRWHGIRUWKHLURYHUKDQJ LQJJDOOHULHV5DLQEDUUHOVVWDQGRQHY HU\FRUQHUDWHVWLPRQ\WRWKHDUHD·VZHW DQGFORXG\FOLPDWH

0REVRIUDQJ\EHDUGHG1RUWKURQ GRFNZRUNHUV ORDG DQG XQORDG (VJDURWK·V VHHPLQJO\ HQGOHVV IORZ RIPHU FKDQWFDUJRHV7KH\ZHDUJURRYHVLQWKHQXPHURXVZRRGHQ VWDLUZD\VDQGODGGHUVOHDGLQJGRZQWKHWHQIHHWRUVRWRWKH ODNH·V VXUIDFH ZKHUH FRXQWOHVV FOLQNHUEXLOW ERDWV DUH PRRUHG WR WKH VHWWOHPHQW·V VXSSRUWV 6WLOO PRUH RDUHG ZDWHUFUDIWSO\WKHFROG ZDWHUV LQ DQG DURXQG WKHWRZQ /DNHWRZQ·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·VVWRQHFKLPQH\V$

<j^Xifk_

light breeze—tainted faintly with the odor of mannish bodies, manure, and fresh fish—blows steadily across the town from the distant northeast shoreline. There, newlygreen oak, ash, and elm trees nestle amidst the rocky shale cliffs. They loom over their reflections in the rippling dark blue depths of the Long Lake (S. “Annen”).

1.2 USING LAKE-TOWN

6

Before reading Lake-town, take a look at the eight-page map insert accompanying the module. One side contains a two-page color map of Lake-town (with a matching key in 11.0), which may be used by players and gamemaster alike. Section 12.0 details specific buildings in the settlement. The same side of the insert also contains a two-page color “player map” of the region of Wilderland around Lake-town. A black & white version of this terrain map in Section 4.2 is tied to a keyed description for the gamemaster. The other side of the insert is comprised of layouts of other important settlements nearby Lake-town. These include the town of Dale (circa T.A. 1640), the neardeserted ruin of Londaroth-by-Lindal, the local village of Cotstow, and the Lake-folk trading town of Buhr Chep. Keyed descriptions to these places can be found in 4.3-4.6. Lake-town is designed as a useful tool for gamemasters who wish to run role-playing adventures in and around Esgaroth-upon-the-Long-Lake. Of course, everybody and every building in the town cannot be completely detailed, so we carefully describe those structures that player characters are most likely to visit (e.g., taverns, inns, gambling houses, supply stores, etc.) An attempt has been made to provide a more rounded description of many of the individuals that PCs might interact with, in sections 14.0 and 19.0, in order to encourage role playing interactions beyond simple combat. Although statistics and skills are given in terms consistent with ICE’s Middleearth Role Playing and Rolemaster fantasy role-playing games, gamemasters using other FRP systems can still derive a clear understanding of the talents and liabilities of the various non-playing characters. Section 18.0 provides guidelines for adapting the material herein to most other FRP systems. In keeping with our emphasis on flexibility, the large and detailed herb, beast, and encounter tables (19.3-19.5) also cover a broad variety of scenarios. After all, adventurers might encounter any number of situations in and around Lake-town. They might meet relatively benign creatures, stumble upon valuable herbs, or be threatened by brigands. They might embark on a hunting or trapping expedition, or simply engage in spirited commerce. The price table 19.6 lists items available in Lake-town and other nearby Northron communities, and includes boat passage costs for adventurers interested in water travel. Given the detailed descriptions of neighboring communities, we provide everything you need to get started on a “Lake-town campaign.”

Of course, Lake-town specifically focuses upon adventures. Sections 2.0, 15.0, 16.0, and 17.0 detail four primary adventures, while sections 21.0 and 22.0 contain eleven shorter, ready-to-run scenarios. We also include general suggestions pertaining to adventuring in, or designing adventures for, exploring Esgaroth and its environs.

1.3 THE TEMPORAL SETTING This module is designed to be useful to a gamemaster running a campaign anytime from the founding of Laketown at the beginning of the second millennium of the Third Age onwards. Like most of ICE’s other Middleearth modules, we use T.A. 1640 when a dated passage is required. At that time, Lake-town was just entering its heyday, yet it still held the flavor and excitement of a frontier settlement. This module frequently refers to the Great Plague. This epidemic was the greatest of many to strike the region, and contemporaries of many of the plagues perceived their own plight as “great.” A gamemaster running a campaign in another era can comfortably refer to the Plague, even if he is talking about another, lesser outbreak of disease. After all, there were many before and after the most calamitous epidemic of T.A. 1635-37. GMs running campaigns which take place during T.A. 1851-99 should note that Lake-town and Dale, like much of Wilderland, were then overrun by the Wainriders (Sagath). These Easterlings ruled most of Rhovanion as a subject kingdom. Adventures at this time could involve much subterfuge and adventurers could even become involved in the Northron Revolt of T.A. 1899. Also note that the Dwarves occupy Erebor, the Lonely Mountain, in T.A. 1999. Afterwards, Dale and Laketown truly enter their Golden Age. This era lasts until the arrival of Smaug the Terrible in T.A. 2770. Dale is abandoned between T.A. 2770 and T.A. 2941; but Laketown is rebuilt, albeit on a much smaller scale, and life continues in the trading community. After being razed a second time by Smaug in T.A. 2941, the community is rebuilt farther north on the shore of the Long Lake.

61$5,1*7+( 608**/(56 'HVLJQHGDVDQDGYHQWXUHWKLVVHFWLRQVKRXOGJLYHWKH *0DIHHOIRUOLIHLQ/DNHWRZQ,WLOOXPLQDWHVVRPHRIWKH PRUH FRPPRQ DWWLWXGHV RI(VJDURWK·V LQKDELWDQWV ,WV VHWWLQJVDQGVWRU\OLQHUHIOHFWWKHIODYRUWKHWRZQDQGLWV P\ULDGLQWULJXHV 6LQFH WKH HQFRXQWHUV GHVFULEHG EHORZ DUH QHFHVVDULO\ UDWKHUVNHWFK\ KRZHYHU WKH JDPHPDVWHUPLJKW ZLVK WR IRUHJRXVLQJWKLVHSLVRGHEHIRUHHPEDUNLQJRQRQHRIWKH DGYHQWXUHVORFDWHGODWHULQWKLVWRPH6HH6HFWLRQV DQG 7KH\ HPSOR\ PRUHOLQHDU SORWV

7+(%2'<,17+(:$7(5 +LOPDQVHWWOHGEDFNLQWRWKHJURZLQJVKDGRZVRIWKH RYHUKDQJLQJ HDYHV 6FUDWFKLQJ QRQFKDODQWO\ DW WKH IOHDV EHQHDWK KLV GLUWVWDLQHG WXQLF KH UDLVHG KLV FKLQ DQG SDQWRPLPHGD\DZQ)LOWK\OLJKWEURZQKDLUIHOOIRUZDUG RYHU KLV IDFH 7KH ER\ OHDQHG EDFN DJDLQVW WKH SDLQWHG GDXESDQHOEHKLQGKLPDQGDGMXVWHGWKHFUXGHDVKFUXWFK EHQHDWK KLV ERQ\ OHIW VKRXOGHU +H EHQW KLV OHDQ IDFH WRZDUG WKH ZRUQ ZRRGHQ VWUHHW EHQHDWK KLVJRRGIRRW SUHWHQGLQJPRPHQWDULO\WRVWXG\WKHHPSW\VSDFHXQGHU KLVWLHGRIIZRROHQWURXVHUOHJ7ZRDOHUWEOXHH\HVSHDNHG WKURXJKKLVWRXVOHGFRZO7KH\GDUWHGILUVWOHIWWKHQULJKW VFDQQLQJWKHODWHDIWHUQRRQDFWLYLW\XSRQWKH:HVW:KDUI IRUVLJQVRIDSDWURO

52//,1*%$55(/6 )DU DZD\ WR WKH VRXWK GRZQ WKH URZ RILQWULFDWHO\ FDUYHGEXWGLODSLGDWHGKDOIWLPEHUDQGSODQNEXLOGLQJVD KRUVHGUDZQZDLQWXUQHGWRHQWHUWKH\DUGRIWKHZRRG ZRUNHU2GDOLQGD6HYHUDOVHOOVZRUGVLQPDLOVKLUWVUDLVHG WKHLUGULQNLQJKRUQV LQVDOXWHWRWKHVWUDZEORQGHULGHU SDVVLQJWKHJDWH$QRWKHUPHUFHQDU\WXUQHGWRFDWFDOODWD VKRUWIRUHLJQZRPDQ ZLWKGDUNEUDLGHGKDLUZHDULQJDQ RGGVNLUWRIJUH\KLGHDQGFRORUIXOO\SDWWHUQHGZRRO6KH UDSSHGWKHPDQKDUGLQWKHFKHVWZLWKWKHEXWWRIKHUVSHDU DVKHUDLVHGKLVGULQNWRKLVOLSVWKHQVZDJJHUHGLQWRWKH 6pROIDUQ&DOFEHIRUHWKHRIIHQGHUFRXOGVWRSFKRNLQJDQG VSXWWHULQJ+LVFRPSDQLRQVODXJKHG1HDUE\IRXUOLWKH :RRGHOYHVGUHVVHGLQHDUWKEURZQDQGOHDIJUHHQWXQLFV DQGKRVHKRLVWHGEDUUHOVXSDVWHHSVWDLUDWWKHSODWIRUP·V HGJH +LOPDQFRXOGIDLQWO\PDNHRXWWKHLUKHDYLO\DFFHQWHG VLQJLQJ+LVHDUODERUHGKDUGDPLGVWDOOWKHQRLVH7KHDLU ZDVULSHZLWKDFKRUXVRIELUGFDOOVWKHEX]]LQJRILQVHFWV WKH LUUHJXODU GUXPPLQJ RI IHHW DQG KRRYHV XSRQ WKH ZKDUIDQGWKHEDQWHURIYRLFHVIURPLQVLGHWKHQHLJKERU LQJWDYHUQ )LYHUDQJ\ZHOOWDQQHG1RUWKURQZRUNPHQUROOHGWKH EDUUHOVWKH(OYHVVHWXSRQWKHGRFNLQWRWKHDOOH\OHDGLQJ WRWKH*URJKXLVPHDGKDOO$VWKHODVW1RUWKPDQHQWHUHG WKHQDUURZGHILOHWKUHHILJXUHVHPHUJHGIURPWKHWDYHUQ DOOH\2QHVWXPEOHGFOXPVLO\DVWKHWULRURXQGHGWKHEHQG

DQG EHJDQDSSURDFKLQJ +LOPDQ ´5LYHU5DWVµ WKH ER\ VLOHQWO\ VXUPLVHG MXGJLQJ TXLFNO\ IURP WKH ERZOHJJHG VWDQFHRIWKHWZRKHDYLHUVHWPHQDQGWKHVWULSHGPDURRQ DQG ZKLWH FDS RIWKH WKLUG 3UREDEO\ UHFHQW DUULYDOV WR (VJDURWKFHOHEUDWLQJWKHLUEULHIUHVSLWHE\VSHQGLQJWKHLU HDUQLQJVRQGULQNLQJZHQFKLQJDQGJDPEOLQJ)URPSDVW H[SHULHQFH+LOPDQNQHZWKDW5LYHU5DWVDLORUVDIWHURQO\ DIHZGD\VLQWRZQKDGOLWWOHOHIWWRVKRZIRUWKHLUORQJ ODERUV /DNHWRZQ TXLFNO\ VZDOORZHG WKH HDUQLQJV RI PDQ\ZKR VSHQWWKH EHWWHUSDUWRIWKHLUOLYHVXSRQ WKH 5LQQHOIOyWKSO\LQJWKHWUDGHURXWHWR'RUZLQLRQ 7KH EORQGH IX]]\FKLQQHG \RXWK LQ WKHVWULSHG FDS UHHOHGGUXQNHQO\+HJUDVSHGWKHVKRXOGHURIRQHRIKLV FRPSDQLRQV IRUVXSSRUW 7KHWKUHH1RUWKPHQ HUXSWHG LQWRORXGODXJKWHU 7KHFRUQHURI+LOPDQ·VPRXWKWZLWFKHGVOLJKWO\DVKH VKLIWHG KLV ZHLJKW XSRQ KLV FUXWFK 7KH XUFKLQ·V H\HV IOLWWHG DFURVV VHYHUDO JURXSV RIORFDO PHQ ZRPHQ DQG UDJJHGO\FORWKHGFKLOGUHQDQGVHWWOHGMXVWWRWKHQRUWK³ XSRQWKHPLVVKDSHQILJXUHRI(DUPWKH/HSHU'UDSHGLQ ORRVHEURZQFORWKLQJWKHFULSSOHGUDJJHGDODUJHEXOJLQJ EXUODSVDFNDFURVVWKHZKDUI+HPRYHGZLWKDVKXIIOLQJ JDLWWRZDUGVDEURDGVWDLUGHVFHQGLQJWRWKHODNHVXUIDFH

7+(+(1&+0$1 6XGGHQO\DQRQGHVFULSWILJXUHZLWKVFUDJJO\VKRXOGHU OHQJWKEURZQKDLUKXUULHGE\+LOPDQ+LVKHDGEHQWWR WKH WRZQ SODWIRUP LQ WKRXJKW KH FROOLGHG ZLWK WKH VWUXJJOLQJ OHSHU VHQGLQJ WKH KXQFKHG ROG PDQ WR KLV NQHHV´$UDZµFXUVHGWKHVWDUWOHGVWUDQJHULQDQDQJU\UDVS ´0LQGWK\SDWKKUpROIDµ+HVSLWZLWKYHKHPHQFHDQGGLVJXVW LQ WKH KRRGHG IDFH RIWKH GRZQHG OHSHU WKHQ EULHIO\ JODQFHG LQ +LOPDQ·V GLUHFWLRQ 7KH XUFKLQ UHPDLQHG PRWLRQOHVV ´$K6DHZLFµ+LOPDQWKRXJKWDVKHVDZWKHH\HSDWFK XSRQWKHPDQ·VIDFH´6DHZLFODFNH\RI+LOGHJULSDWKH/HDQµ7KH ER\ SULGHG KLPVHOIRQ KLV IDPLOLDULW\ ZLWK (VJDURWK·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

?`c[\^i`gXk_\C\Xe

RIKLVFRUSXOHQWFRPSDQLRQ +HUQDPH ZDV +LOGHJULSD DQG 6DHZLF DSSHDUHG FRZHG LQ KHUSUHVHQFH+HEHWFRQVHUYDWLYHO\ZKHQHYHU VKHGLGQ·W DQG GHIHUUHG WR KHU LQFRQYHUVD WLRQ ´&RZDUGO\ZKHOSµWKHGLFHPDQWKRXJKW WRKLPVHOI´,IHDUQRZRPDQQRPDWWHUKRZODUJHµ 7KHJDPEOHUWXUQHGKLVDWWHQWLRQWRWKHDOH IRDPWUDSSHGLQWKHGDUNEHDUGRIKLVVKLS PDWHWKHVHFRQGRIKLVRSSRQHQWV,WGULSSHG VORZO\ RQWR WKH JRXJHG RDNHQ WDEOH 2XW ZDUGO\SODFLGWKHJDPEOHUNQHZWKDWVDLORU ZRXOGPXUGHUDFKHDWMXVWDVUHDGLO\DVDQ\RI WKHRWKHUV )LQDOO\ KLV JD]H FDPH WR UHVW XSRQ WKH SURSULHWUHVV RIWKLV GDQNSODFH +LOGHJULSD ´7KH/HDQµWKH\FDOOHGKHUDIWHUDMRNHPDGH E\DIRROLVK 5LYHU5DWDERXW KHUHQRUPRXV REHVLW\ D 5LYHU 5DW QRZ QR ORQJHU DOLYH 6RPHZKLVSHUHGEHKLQGWKHUHSXOVLYHZRPDQ·V EDFNWKDWKHUPRWKHUKDG EHFRPHFRQIXVHG ZKLOHLQDQDOHLQGXFHGVWXSRUDQGFRQFHLYHG DGDXJKWHUZLWKD0LUNZRRG7UROO +LOGHJULSD·VQRWRULRXVO\YLFLRXVGHPHDQRU DWWLPHVHYHQH[FHHGHGWKDWRIWKHWZRPXUGHU RXVGRJVQRZGR]LQJDWKHUIHHW7KHGLFHPDQ JULQQHGFUXHOO\DWWKHWKRXJKW$VKHUHDFKHG RXWWRJDWKHUWKHDGGLWLRQDOFRLQVLQWKHFHQWHU RIWKH WDEOH KLV H\HV PHWWKHKXJH ZRPDQ·V EHDG\ VXVSLFLRXV VWDUH +H VFDUFHO\EOLQNHG EHIRUH+LOGHJULSDVODPPHGWKHEDFNRIKLVOHIW DUPGRZQXSRQWKHWDEOHZLWKDVLQJOHVZLIW PRWLRQ+LVKDQGRSHQHGZLWKWKHLPSDFWDQG $'($'/<:$*(5 WKHJRRGGLHVSLOOHGRXWLQWRWKHFDQGOHOLJKW $ORQJQRVHGJDPEOLQJPDQUXEEHGKLVH\HVZLWKWKH $OOH\HVZHUHXSRQKLPDVWKHJDPEOHUURVHDQGUHDFKHG EDFN RIRQH FDOORXVHG KDQG +H VTXLQWHG LQWR WKH GLP LQVWLQFWLYHO\ IRU WKH VFUDPDVD[³WKH ORQJNQLIH DW KLV FDQGOHOLJKWRIWKHGLQJ\EDUURRPLQDQDWWHPSWWRFOHDUKLV EHOW³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·VKHDY\VWHSVUDQJRXWRYHUWKHOLYHO\GDZQ 7KHPDQH\HGKLVRSSRQHQWVDVKHFDVXDOO\SDOPHGWKH FRQYHUVDWLRQVRIWKHVSDUURZVQHVWLQJEHQHDWKWKHVSDQ JRRGWKHLQKLVOHIWKDQGDQGFDVWKLVVSHFLDOZHLJKWHGRQH 6KLIWLQJWKHEDVNHWRIUROOVEDNHGE\(JLO IRUWKH%ULGJH LQLWVSODFH$FURVVIURPKLP DODQNKDLUHGERDWZULJKW *XDUG·VPRUQLQJPHDOWRKLVOHIWDUPWKHVROGLHUUHDFKHG QDPHG6DHZLFIURZQHGPHQDFLQJO\DWWKHUROO+LVFRP RXWWRSODFHKLVULJKWKDQGXSRQRQHRIWKHLPPHQVHSLOHV SDQLRQVFODLPHGKHKDGORVWKLVH\HWRDKRWEUDQGDIWHU VXSSRUWLQJ WKH /DQGEULGJH $V KH VWURGH E\ WKH JUHDW EHLQJ FDSWXUHG E\ (DVWHUOLQJV LQ KLV \RXWK 7KH\ VDLG VWUXFWXUH KH JODQFHG PRPHQWDULO\ GRZQ WKURXJK WKH 6DHZLFQHYHUXWWHUHGHYHQDJDVSZKHQWKHGHHGZDVGRQH 'HVSLWHVXFKWDOHVDQGDOO6DHZLF·VPHQDFLQJFXUVHVDQG WKLQQLQJ PLVW DW WKH /RQJ /DNH·V VXUIDFH +H VWRSSHG VQDUOVWKHJDPEOHUFRXOGVHHWKDWWKHROGDUWLVDQZDVDIUDLG VKRUWLQVWLQFWLYHO\KLVKDQGVHDUFKLQJIRUKLVEURDGVZRUG·V HQDPHOLQODLG SRPPHO

´%\ 2VODFµ KH VZRUH JULPO\ ´WKHUH VZLPV D IHOORZ ZKRVH ZDLUSULNLVVXUHO\\HWXQSDLGµ %HORZ D GDUNKDLUHG ILJXUH IORDWHG IDFHGRZQ LQ WKH ZDWHU7KHJHQWOHFXUUHQWKHOGKLVFRUSVHDJDLQVWWKHQRUWK VLGHRIDWLPEHUSLOH+LVORQJJUH\FORDNWDQJOHGDPRQJVW WKHUHHGVDQGOLOLHVJURZLQJDERXWWKHVXSSRUW

7+(13&6 6HFWLRQGHWDLOVDOORIWKHPDMRUQRQSOD\HUFKDUDF WHUVLQWKLVDGYHQWXUH7KH\LQFOXGHWKHVPXJJOHU.\QRGHQ KLVOLHXWHQDQWV9RJLUDQG+LOGHJULSDDQGKLVKHQFKPDQ 6DHZLF 7KHLU VWDWLVWLFV DUH DFFRPSDQLHG E\ WKRVH RI +XUP:DWROHU+LOPDQWKHXUFKLQ(DUP+UpROID9LORULF :RHGZ\Q DQGWKHLU/RQGDURWKWKXJV 8VHWKHJHQHUDO GDWDLQ6HFWLRQ IRUDQ\XQQDPHGVPXJJOHUV

%($'$52)·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·V 7+(7$6. 7KHDGYHQWXUHUVIDFHWKHSURVSHFWRIXQFRYHULQJRQHRI %ORFNPLQJOHGZLWKWKHGRFNZRUNHUVILQLVKLQJWKHLUODERU IRUWKHGD\$ODNHVWRUNSHUFKHGXSRQDSLOLQJORRNHGXS /DNHWRZQ·VPDMRUVPXJJOLQJRSHUDWLRQV IURPSUHHQLQJLWVHOIWRUHJDUGWKH7RZQ*XDUG&DSWDLQDV 67$57,1*7+(3/$<(56 KHPXVHGXQGHUKLVEUHDWK $ UHSUHVHQWDWLYH RI %HDGDURIDSSURDFKHV WKH SOD\HU 7RFRQVXOWZLWKWKHROG:\UGZRPDQRUQRW"7KHERG\WKDW FKDUDFWHUV$IWHUWDFWIXOLQTXLULHVKHDUUDQJHVDPHHWLQJ RQHRIKLVPHQKDGGLVFRYHUHGWKDWPRUQLQJDIORDWLQWKHODNH EHWZHHQWKH0DVWHURU´0DHVWDµ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yWKDIWHU 'ULKWHQRU*XDUGUHFHQWO\SXOOHGDFRUSVHIURPWKH/RQJ WKH3ODJXH%HDGDURIVXVSHFWHGWKDWWKLVERG\ZDVVRPHKRZ /DNH6QDJJHGRQDZRRGHQSLOHEHQHDWKWKH/DQGEULGJH FRQQHFWHGWRWKHLOOLFLWWUDGHDQGZRQGHUHGLIWKHFRUSVHZDV WKH EDGO\PDUUHG 1RUWKURQ ERG\UHPDLQV XQLGHQWLILHG WKDWRIDWUDYHOHURQDVPXJJOHU·VVKLS%\XQFRYHULQJWKHGHDG %HDGDURILVVXUHWKRXJKWKDWWKHGHDGPDQLVDQRXWVLGHU PDQ·VLGHQWLW\DQGWKHFLUFXPVWDQFHVRIKLVGHDWKWKH:HQGULKW +HSUREDEO\HQWHUHGWRZQMXVWWKHGD\EHIRUHKHZDVVODLQ NQHZKHPLJKWILQGWKHMDFNVWUDZWKDWZRXOGEUHDNWKHPDUVK ,IVR KH DUULYHG E\ ERDW VLQFH QHLWKHU RIWKH %ULGJH SRQ\·VEDFN:HUHWKLVWUXH%HDGDURIFRQVLGHUHGWXJJLQJDW *XDUGV³&KORGRPLU RU &KORWDUHDFK EOHVVHG ZLWK DQ KLVEHDUGWKHUHZDVOLWWOHTXHVWLRQWKDWKHZRXOGQHHGRXWVLGH H[WUDRUGLQDU\PHPRU\ ³UHFDOODGPLWWLQJKLPWKDWGD\ KHOS,WZRXOGEHQHFHVVDU\WRKLUHVWUDQJHUVKHFRXOGEHVXUH %HDGDURI KDV DOUHDG\ FRQVXOWHG %RJDWXQJ WKH ZHUHQRWWDNLQJEULEHVIURPVPXJJOHUV)LUVWWKRXJKKHZRXOG :\UGZRPDQZKRLQGLFDWHGWKDWWKHPXUGHULVFRQQHFWHG VHHNRXW%RJDWXQJ%HDGDURINQHZWKDWWKH:\UGZRPDQRI ZLWK VPXJJOLQJ DFWLYLW\ LQ WKH WRZQ 7KH 0DHVWD QRZ WKH&XOWRIWKH)LVKFRXOGDGYLVHKLPDQGFRQILUPZKHWKHURU EHOLHYHVWKHWLPHLVULSHWRH[SRVHWKHVPXJJOHUV·ULQJ+H QRWWKHFRUSVHWUXO\ZDVOLQNHGZLWKWKH:HVW:KDUIVPXJ KRSHVWRVZLIWO\EULQJWKHPWRMXVWLFHEXWKHQHHGVKHOS JOLQJULQJ IURPRXWVLGHUV+HFDQQRWUHO\RQWKHWRZQ'ULKWHQ ´7R%RJDWXQJWKHQµKHPXPEOHGDORXG7KHQKHZKHHOHG 7+('(&($6(' DFURVVWKHEULGJHRYHUWKHFDQDOORRNLQJIRUWKHKXWRIWKH 7KHGHDGPDQZDVLQIDFWDVDLORUDERDUGDPHUFKDQW DJLQJVHHU´7KDWWKHILUVWVWRUPZDYHPD\ZDVKDFURVVWKHKRZRI VKLS UXQQLQJ VPXJJOHG JRRGV EHWZHHQ /RQGDURWK DQG WKHVPXJJOHUV·FRQWUDEDQGVKLSµ+HZLQNHGDWDFDOPO\SHUFKHG /DNHWRZQ $IWHU XQORDGLQJ WKH VKLS·V FDUJR WKH FUHZ VWRUN DQG PRYHG ZLWK SXUSRVH SDVW WKH KDOIWLPEHUHG UHWLUHGWRWKH (UDQQXQ·VWDYHUQ URRP 2QFHGUXQN WKH VKRSV DORQJWKH%DUUHO:KDUI GHFHDVHG ZDV FDXJKW FKHDWLQJ LQ D VSLULWHG GLFH JDPH ´6PXJJOHUVKLSVµUHSOLHGWKHELUGFRFNLQJLWVEDOGKHDG +LOGHJULSD´LQDGYHUWHQWO\µPXUGHUHGKLPLQWKHHQVXLQJ DQGIODSSLQJRIIWR LWVFKLPQH\QHVW EUDZO

7KHLQHEULDWHGVPXJJOHUVDWWHPSWHGWRGLVSRVHRIWKH ERG\E\GURSSLQJLWGRZQRQHRIWKHXQORDGLQJFKXWHVLQ WKH NLWFKHQ RIWKH LQQ 7KH\ IHDUHG QRWLI\LQJ HLWKHU RI WKHLUWZROHDGHUV.\QRGHQDQG9RJLU.\QRGHQKDVVLQFH EHHQLQIRUPHGRIWKHHSLVRGHE\6DHZLFZKRDVDUHVXOW RIWKHVOD\LQJLVQRZDWRGGVZLWK+LOGHJULSD.\QRGHQ FRQIURQWHGDQGUHSULPDQGHGWKH(UDQQXQ·VKXJHSURSUL HWUHVV +H FRXOG GR OLWWOH HOVH RIFRXUVH IRU WKHWRZQ 'ULKWHQKDGUHFRYHUHGWKHVODLQERG\E\WKHWLPHRIWKH FRQIURQWDWLRQ

WKHLURZQ(YHQLIWKH\FDQLPSOLFDWHKLPDQ\DFFXVDWLRQ DJDLQVWWKH .U\Q RIWKH%RHGE\OJDV UHTXLUHV DEVROXWHO\ GDPQLQJHYLGHQFH%HDGDURILVXQOLNHO\WRDFWRQDQ\WKLQJ OHVV 0HDQZKLOH 9LORULF DV D UHVLGHQW RI /RQGDURWK LV EH\RQGWKHJUDVSRI/DNHWRZQ·V'ULKWHQ:KLOH%HDGDURI ZLOOFXUEWKHODZOHVVPLOOHU·VEURDGLQVSHFWLRQH[HPSWLRQV ERWKKHDQGKLVFRPSDWULRWVZLOOORRNWRZDUGPRUHLOOLFLW SURILWV³DVZHOODVDELWRIUHYHQJH

$,'6

%HDGDURIRIIHUVD´KHDGSULFHµRIWKLUW\VLOYHUSLHFHVIRU SURRIDJDLQVWDQ\JLYHQVPXJJOHU+HLVZLOOLQJWRSD\D WKRXVDQG IRU DQ DLUWLJKW FODLP DJDLQVW WKH ULQJOHDGHU $GGLWLRQDOERQXVHV VXFK DVWDULIIH[HPSWLRQVDQGUHWDLO FUHGLWV PLJKW DOVR EH DYDLODEOH )RU LQVWDQFH %HDGDURI FRXOGDVN2GDJDYLDWRZDLYHFHUWDLQGXWLHVIRUVXFFHVVIXO DGYHQWXUHUVZKRHQJDJHLQIXWXUHFRPPHUFH

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·UHSXWDWLRQV

(1&2817(56 (QFRXQWHUV QDWXUDOO\GLFWDWHWKHIORZRIPRVWDFWLRQ DQG WKH VXFFHVV RUIDLOXUH RIPRVWDQ\DGYHQWXUH +HUH WKH\PLJKWDOVRGLFWDWHWKHDFWRUV·IXQGDPHQWDOIDWH

7+(&+$51(/+286(&2536(

7KHDGYHQWXUHUVPLJKWEHJLQWKHLUWDVNZLWKDYLVLWWR 9UDFRWK·V FKDUQHO KRXVH ZKLFK LV VLWXDWHG RQ WKH ODNH 7KHZLO\.\QRGHQDQGKLVKHQFKPDQ9RJLUDUHHVSH VKRUH 7KHUH WKH\ FDQ H[DPLQH DQG VHDUFK WKH YLFWLP·V FLDOO\GDQJHURXV%RWKDUHLQWHOOLJHQWDQGUXWKOHVV6RWRR ZDWHUORJJHG ERG\ 7KH FRUSVH LV FRYHUHG ZLWK VPDOO DEUDVLRQVLQFOXGLQJRQHYHU\KHDY\EUXLVHRQWKHEDFNRI LV :RHGZ\QRI/RQGDURWK :KHQWKHDGYHQWXUHUVIHHOWKH\KDYHJDWKHUHGHQRXJK LWVQHFN7KHFDXVHRIGHDWK LVXQFOHDU%HVLGHVEUXLVHV LQIRUPDWLRQWKH\FDQUHWXUQLQJRRGVWHDGWRWKH(UDQQXQ FXWVDQGDPDVVLYHDEGRPLQDOZRXQGWKHUHDUHVHYHUDO +RZPXFKWKHVPXJJOHUV·ULQJLVGDPDJHGGHSHQGVXSRQ ODUJHFDQLQH ELWHZRXQGVRQLWVOHJDQGIRUHDUP)XUWKHU WKHGHSWKRIWKHLULQYHVWLJDWLRQ,WUHPDLQVKLJKO\XQOLNHO\ WKH LQVLGH RILWV PRXWK HDUV DQG QRVH DUH FDNHG ZLWK WKRXJKWKDWWKH\ZLOOEHDEOHWREULQJGRZQ.\QRGHQRQ JURXQGEDUOH\ $OPRVWDOOJUDLQLQWKHUHJLRQLVJURXQGLQRQHRI WKHWZRPLOOVDW/RQGDURWKRZQHGE\9LORULF+HLV WKH ULFKHVW PDQ LQ WKDW WRZQ 6KRXOG WKH SOD\HU FKDUDFWHUVEHSURPSWHGWRWUDYHOVRXWKWRWKH7RZQ E\WKH)DOOVWKH\PLJKWXQFRYHUYDOXDEOHFOXHV7KH\ PXVWEHFDUHIXOZKLOHSRNLQJDURXQG9LORULF·VKRPH WHUULWRU\ ,I3&V DUH WRR VTXHDPLVK WR VHDUFK WKH PXUGHU YLFWLPWKHPVHOYHV*ULVWOXQJ³9UDFRWK·V\RXQJDQG IRROLVK VRQDSSUHQWLFH³ZLOO GLVFRYHU WKH EDUOH\ +HZLOONHHSWKHLQIRUPDWLRQWRKLPVHOIIRUKHLVDQ DVSLULQJQRYLFH LQWKH&XOWRIWKH/RQJ1LJKWDQG SODQVWREODFNPDLO9LORULF+LVSORWZLOO IDLOKRZ HYHUZKHQDIHOORZ&XOWPHPEHUQDPHG:RHGZ\Q LQWHUFHGHV7KHFRPHO\:RHGZ\QLV9LORULF·VVLVWHU 6KHSRLVRQV*ULVWOXQJEHIRUHKHUHDOL]HVKHUFRXQWHU SORW 7R DJJUDYDWH DGYHQWXUHUV IORXQGHULQJ LQ WKHLU LQYHVWLJDWLRQWKHJDPHPDVWHUFRXOGFKRRVHWRKDYH *ULVWOXQJ UHJUHW KLV HQWUHSUHQHXULDO YHQWXUH 7KH FDJH\DSSUHQWLFHPLJKWVHQGZRUGWKDWKHZLVKHVWR VSHDN ZLWK WKHP VKRUWO\EHIRUH KLVGLVDSSHDUDQFH GHDWK

2%67$&/(6

CXYpi`ek_f] nff[\ek`dY\ij

5(:$5'6

7+(0,//(52)/21'$527+

DJUHDWGHDO+HZLOOQRWRQO\UHFRJQL]HDGHVFULSWLRQRI 6DHZLFEXWZLOODFWXDOO\WHVWLI\WRZLWQHVVLQJWKHGXPSLQJ ,IWKHDGYHQWXUHUVVNXONDURXQG/RQGDURWKE\/LQGDO ORQJ HQRXJK WKH\ ZLOO UHDOL]H WKDW 9LORULF HPSOR\V DQ RIWKHPXUGHUYLFWLP·V ERG\7KHVWRUNVWRRG E\RQ WKH DZIXOORWRIELJWKXJJLVKDSSUHQWLFHV7KLVFRXSOHGZLWK QLJKWWKHFRUSVHVOLGGRZQWKHUHIXVHUDPSDWWKHLQQ $IWHU EHLQJWKURZQ RXWRIWKH (UDQQXQ E\ WKH HQRU WKHIDFWWKDWWKHULYHULQHWRZQLVDVPDOOFRPPXQLW\PHDQV WKDWDQ\H[WHQGHGVWD\E\WKHDGYHQWXULQJSDUW\LVOLDEOHWR PRXVO\IDWVODWWHUQ+LOGHJULSD´WKH/HDQµDQGKHUWZR DOHUW 9LORULF 7KH ZHDOWK\ PLOOHU PLJKW WKHQ VHQG WKH YLFLRXV GRJV WKH DGYHQWXUHUV PLJKW EH HQFRXUDJHG WR UHWXUQ &DXWLRQ GLFWDWHV WKDW WKH\ VKRXOG UHVXPH WKHLU DGYHQWXUHUVDGHDGO\ZHOFRPLQJSDUW\ 6LPLODUO\ QRFWXUQDO LQYHVWLJDWLRQV RI9LORULF·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·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´PRUHUHOLDEOHµPHDQVWRWU\DQG (UDQQXQ IDFH D GLIILFXOW WULDO +LOGHJULSD·V KRXQGV DUH EUHDNWKHPXUGHURXVVPXJJOLQJULQJ DOHUWQRLV\DQGPHDQ6WLOOWKH3&VPLJKWPDQDJHWRQRVH DURXQGORQJHQRXJKWRQRWLFHJURXQGEDUOH\DQGEORRG 48(5,(6217+(:(6725) FRYHULQJWKHIORRURIWKHVWRUHURRP 7KHDGYHQWXUHUVPLJKWGHFLGHWREHJLQZLWK DQ LQYHVWLJDWLRQ DURXQG WKH :HVWVLGH :KDUI 7KLV ZLOO SUREDEO\ DOHUW WKH VPXJJOHUV WR WKH SDUW\·V SXUSRVH 7KH\ FDQ DYRLG WKLV SLWIDOO KRZHYHUE\TXLFNO\DQGVWHDOWKLO\DSSURDFKLQJ MXVWWKHULJKWPDQ ,IWKHDGYHQWXUHUVQRWLFHWKDW(DUPWKHJDU EDJHFROOHFWRUVSHQGVDJUHDWGHDORIWLPHURZ LQJXSDQG GRZQ WKH ZHVWVLGHRI/DNHWRZQ WKH\PD\EHSURPSWHGWRTXHVWLRQKLP,IVKRZQ WKHERG\(DUPZLOOUHFDOOKDYLQJVHHQWKHGHDG PDQVSHDNWRDIHOORZZLWKDQH\HSDWFK6DHZLF +H ZLOO UHFNRQ WKHLU PHHWLQJ DV KDYLQJ WUDQ VSLUHGRQWKHGD\EHIRUHWKH'ULKWHQSXOOHGWKH YLFWLPIURPWKHODNH

61223,1*$77+( (5$1181 4XHULHVDERXWH\HSDWFKZHDULQJWKXJVVKRXOG HYHQWXDOO\ OHDG WKH DGYHQWXULQJ SDUW\ WR WKH (UDQQXQ ,QQ $IWHU DOO +XUP :DWROHU +\JHJULP6DHZXOIDQGPRVWRIWKHXUFKLQVLQ 6FXOGLQJ·VSLFNSRFNHWJDQJDOOVDZWKHPDQZLWK WKHH\HSDWFKYLVLWWKH(UDQQXQDOWKRXJKJHWWLQJ WKHP WRVD\VR PD\EH GLIILFXOW +LOPDQ WKH XUFKLQV· ODPH ORRNRXW HYHQ NQRZV WKH PDQ·V QDPH $GYHQWXUHUVZKRWKLQNWRTXHVWLRQWKHVWRUN QHVWLQJDWRSRQHRIWKH(UDQQXQ·VFKLPQH\VZLOO EHJHQHURXVO\UHZDUGHG7KHZDWFKIXOELUGNQRZV

/$.(72:1 (VJDURWK LV WKH ODWHVW LQ D ORQJ OLQH RIVHWWOHPHQWV VLWXDWHG DW WKH FRQIOXHQFH RIWKH )RUHVW 5LYHU DQG WKH /RQJ/DNH,WFRPPDQGVWKHMXQFWLRQRIWZRZDWHUERUQH WUDGHURXWHVDQGVHUYHVDVWKHHDVWHUQJDWHZD\LQWRWKHYDVW UHDFKHVRI0LUNZRRG7KHZHOOSURWHFWHGSRUWWRZQLVLQ HYHU\VHQVHDWWKHKHDUWRI5KRYDQLRQ

$+,6725<2)/$.(72:1

6HDVRQDOFDPSVLWHVDSSHDUQHDUWKHSUHVHQWVLWHVRIERWK (VJDURWKDQG/RQGDURWKQHDUWKHEHJLQQLQJRIWKH6HFRQG $JH 2FFXSLHG E\ $UKQHULQVSHDNLQJ KXQWHUV DQG ILVKHUIRONFDOOHG1HQHGDLQ6´:DWHUPHQµ WKH\VHUYH DV ERWK UHIXJHV DQG PDUNHWSODFHV (DFK JURZV VWHDGLO\ DQGE\WKHPLGGOHRIWKHDJHWDNHVRQDVHPLSHUPDQHQW FKDUDFWHU (DUWKZRUNV DQG VWRFNDGHV UHSODFH WKH UXGH VWRUPIHQFHV DQGVWRQHKHDUWKVDQGIXUQDFHVDSSHDUE\ WKHDQFLHQWILUHSLWV

7+(2/'67,/7+286(&8/785( :KLOH D PRGHVW PRXQGYLOODJH JURZV XS EHORZ WKH ZDWHUIDOODW/LQGDODGLIIHUHQWVRUWRIVHWWOHPHQWHYROYHV WR WKH QRUWK DW/RQJ/DNH )UHTXHQWIORRGLQJ FKURQLF UDLGLQJ DQG DPSOH WLPEHU VXSSOLHV FRQWULEXWH WR WKH GHYHORSPHQWRIDORFDO´VWLOWKRXVHµ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

VHFRQG VRQ RI D 1HQDGDQ FKLHIWDLQ KH ZDV ERUQ LQ QRUWKZHVWHUQ(ULDGRU+HLVD´ODWHFRPHUµWR5KRYDQLRQ /HDGLQJWZRVFRUHRIKLVSHRSOHHDVWKHVHWWOHVDPRQJKLV HDVWHUQNLQVPHQLQWKH1DQ&HOGXLQ6´5LYHU5XQQLQJ 9DOOH\µ DURXQG7$'HQLHGODQGDQGGHSULYHGRI HTXDOULJKWV)ULWKXJDUDQGKLVIROORZHUVUHDOL]HWKDWWKH EHVWFRXUVHLVWREXLOGWKHLURZQVHWWOHPHQW7KLVWKH\GR XVLQJWKHSLOLQJVIURPDUXLQHG/DNHPDQFODQFHQWHU )ULWKXJDU·V)RONFDOOWKHLUQHZKRPH´5HHGGHOYLQJµ ´(VJDURWKµLQWKH6LQGDULQWRQJXH,WLVWKHWHQWKSHUPD QHQWYLOODJHHUHFWHGQHDUWKHPRXWKRIWKH)RUHVW5LYHU ,QLWLDOO\OLWWOH PRUHWKDQ DOHVVHU WUDGLQJ FHQWHU DQG DQ RXWSRVW RI (ULDGRUDQ FXOWXUH LW JURZV WR EHFRPH D VLJQLILFDQWILVKLQJDQGERDWEXLOGLQJVWDWLRQ:KHQPRVW RIQHDUE\/DNHWRZQEXUQVGRZQLQ7$(VJDURWK DEVRUEVPRVWRIWKHUHIXJHHV
'(9(/230(17'85,1*7+(7,0(2)7+(1257+0$1 .,1*'20 %\WKHWLPHRI9LGXJDYLD·VULVHWRSRZHUDW%XKU:LGX FD 7$ (VJDURWK IRUPV SDUW RID WUDGLQJ OHDJXH WKDW LQFOXGHV WKH 'DOHPHQ WKH:RRGHOYHV RI &HOHEDQQRQDQG1RUWKPHQRI/RQGDURWKDQGRWKHUVLWHV DORQJWKH5LYHU5XQQLQJ:KLOH9LGXJDYLDORRNVWRZDUG DQFLHQW'DOHDV WKHWUXH FHQWHURI+LOGR FLYLOL]DWLRQ LQ QRUWKHUQ5KRYDQLRQKHFRXQWV(VJDURWKDVWKHQRUWKHUQ PRVWIRFXVRIKLVRZQ1RUWKPDQNLQJGRP+HORRNVWR (VJDURWK·V0DVWHUV DV FOLHQWV DQGYDVVDOV DQGVXSSRUWV WKHLUYDULRXVHQWHUSULVHV $IWHU7$PXFKRI(VJDURWK·VJURZWKFRPHVDW WKHH[SHQVHRIQHLJKERULQJ/RQGDURWK$VWHDG\IORZRI 1RUWKPHQ PLJUDWH QRUWKZDUG IURP WKHLU KRPHV EHORZ /LQGDO VHHNLQJ MREV DQG VHFXULW\ $V WKH\VHWWOH LQ WKH 7RZQXSRQWKH:DWHU (VJDURWK VXSSODQWV /RQGDURWK DVWKHDUHD·VSULPDU\1RUWKURQSRSXODWLRQFHQWHU $OWKRXJKWKHDSSHDUDQFHDQGSK\VLFDOOD\RXWRI/DNH 7+()281',1*2)/$.(72:1 WRZQFKDQJHVYHU\OLWWOHDIWHU7$ WKHWRZQ0DV 'XULQJWKHILUVWPLOOHQQLXPRIWKH7KLUG$JHDVWHDG\ WHUVSUHVLGHRYHUDVWHDG\VHULHVRIH[SDQVLRQVDQGUHILQH WULFNOH RI (ULDGRUDQ 1RUWKPDQ LPPLJUDQWV VZHOO WKH SRSXODWLRQ RI 5KRYDQLRQ 7KH WUDGLQJ FHQWHU DW WKH PHQWV9RGDJDWKHSRSXODU0DVWHUZKRUXOHVIRUHLJKW PRXWK RIWKH 5LYHU5XQQLQJEHFRPHVNQRZQ DV ´%XKU \HDUVEHJLQQLQJLQ7$FRPPLVVLRQVWKHJUHDWHVWRI $IRQµ RU ´/DNHWRZQµ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·VSRSXODWLRQSHULVKEHWZHHQ VHOYHV ´/DNHPHQµ DOWKRXJK WKH\ VSHQGPXFK RIWKHLU 7$ WLPHURZLQJRQWKHYDVWQHWZRUNRIQHLJKERULQJPDUVKHV 5HODWLYHO\VSHDNLQJWKRXJK(VJDURWKHQGXUHVWKHSODJXH ULYHUVDQGVWUHDPV ZLWKFRQVLGHUDEOHYLJRU2QO\WKHQREOH'DOHPHQZHDWKHU 2UDODFFRXQWVFUHGLW)ULWKXJDU1R´3HDFHPDNHUµ DV WKHVWRUP LQEHWWHUFRQGLWLRQ7RZQV OLNHWKH DOUHDG\ WKHIRXQGHUDQGILUVW+HDGPDQRIPRGHUQ(VJDURWK7KH

E\*HRUJH$OOHQ 8QZLQ3XEOLVKHUV /WG

VKULQNLQJ/RQGDURWKILQGWKHPVHOYHVYLUWXDOO\ZLSHGRXW 0DQ\LQKDELWDQWVIOHHWRPRUHUXUDODQGUHPRWHDUHDVWR DYRLGWKHVFRXUJH7UDGHDORQJWKH&HOGXLQDOOEXWFHDVHV 5LRWV EUHDN RXW LQ /DNHWRZQ GXULQJ DQG DIWHU WKH VHYHUHZLQWHURI7$0HPEHUVRIWKHVWDUYLQJ DQG SDQLFVWULFNHQ SRSXODFH ILJKW IRU SUHFLRXV VXVWH QDQFH ORRWLQJ PDQ\ VKRSV DQG ZDUHKRXVHV )LUHV FRQ VXPH D QXPEHU RIVKLSV DQG WZR VL]HDEOH DUHDV RIWKH &ODGKRU1R´&ORWKLHUV·'LVWULFWµ %XUGHQVRPHVQRZV LQ HDUO\VSULQJVXEVHTXHQWO\FROODSVHWKHPDLQSODWIRUP EHQHDWKRQHRIWKHEXUQWRXWDUHDV $ SHFXOLDU UHG WLGH QHYHU EHIRUH DQG QHYHU VLQFH ZLWQHVVHG DFFRPSDQLHV KHDY\ VSULQJ IORRGLQJ LQ DQGZDVKHVWKURXJKWKH/RQJ/DNHNLOOLQJPDQ\RIWKH ILVK DQG VKHOOILVK ZKLFK IHHG WKH DOUHDG\ IDPLVKHG WRZQVIRON7RZQVSHRSOHVSHDNRIWKHGRRPRI0LGGOH HDUWK7KHDLUILOOVZLWKIRXORGRUVDVWKHVLFNO\VZHHWUHHN RI3ODJXHYLFWLPV· S\UHV PLQJOHV ZLWK WKH VWHQFK RIWKH GHDGILVKDIORDWRQWKHEORRGVWDLQHGODNH :KHQDQDQJU\KXQJU\PREKDQJVWKH9LVNQDN\QSULHVW DQGWKHWRZQ0DVWHUVXFFXPEVWRWKHSHVWLOHQFHODWHWKDW VXPPHU %HDGDURIVHHNV DLGIURPD SURPLQHQW PHUFKDQW 2GDJDYLD7RJHWKHUWKH\VWULYHWRNHHSRUGHU$IWHUDPHDJHU DXWXPQKDUYHVW2GDJDYLDPDNHVDSHUVRQDOWUHNWR$UDGKU\QG WRSOHDGZLWKWKH(OYHQNLQJIRUDLG+HVXFFHHGVLQREWDLQ LQJDVVLVWDQFH6RRQWKHUHDIWHUDQHPHUJHQF\VHVVLRQRIWKH $WDQDWKUDLQHOHFWV2GDJDYLD0DVWHURI(VJDURWK

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

7+(:$,15,'(5,19$6,21$1'2&&83$7,21 7KH QHZSHDFH DQG SURVSHULW\ ODVWV D OLWWOH RYHUWZR FHQWXULHV ,Q 7$ ERWK (VJDURWK DQG 'DOH DUH RYHUUXQDQGRFFXSLHGE\WKH´:DLQULGHUVµDFRQIHGHUD WLRQ RI (DVWHUOLQJ WULEHV 0DQ\ /DNHIRON HVSHFLDOO\

CXb\$kfne

K_\Zfd`e^f]k_\ NX`ei`[\ij

WKRVHIURP%XKU0DUGHQDQGUD]HGVPDOOHUYLOODJHVRQWKH ORZHU&HOGXLQ 'DOHIRONDQG*UDPX]IOHHVRXWK6RPH HYHQWXDOO\ WUDYHO ZHVWZDUG ZLWK WKH e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

7+(1257+5215(92/7 $IWHUIRUW\WKUHH\HDUVRIRFFXSDWLRQLQ7$D UHEHO IRUFH OHG E\ :HQGHOLQJ 1R ´6DERWDJHUµ ³WKH 'DOHPDQKHLUWRWKH.U\WKpRGFODQ³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

7+($55,9$/2)7+(':$59(6$7(5(%25$1'7+( *2/'(1$*( ,Q7$7KUiLQ,1R´2EVWLQDWHµ RI'XULQ·V OLQH OHDGV D IRUFH RI 'ZDUYHV WR 'DOH 7KH 'ZDUYHV VHFUHWO\ LQYHVWLJDWH WKH SRVVLELOLW\ RIEXLOGLQJ D KRPH EHQHDWK (UHERU 2QFH WKHLU LQLWLDO H[SORUDWLRQV SURYH SURPLVLQJWKH'ZDUI.LQJDSSURDFKHV'DOH·V7K\QZLWK JLIWV DQGSURPLVHVRIDQDOOLDQFH'DOH·V7K\Q UHVSRQGV SRVLWLYHO\WR7KUiLQ·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·V IRONOHDGVWR LQFUHDVHGFRPPHUFHDORQJWKH5LYHU5XQ QLQJDQGDFURVVWKH/RQJ/DNH 'DOHQHDUO\WULSOHVLQVL]HRYHUWKHQH[WVHYHUDOFHQWXULHV ,WVSRSXODFHEHFRPHVPRUHFRVPRSROLWDQDQGFODQJURXS LQJV EHJLQ WR EUHDN GRZQ (VJDURWK IORXULVKHV DORQJ VLPLODUOLQHV,WVSRSXODWLRQVZHOOVDQGWROOFRIIHUVRYHU IORZ 7KHUHJLRQHQMR\VSHDFHDQGSURVSHULW\HYHQDIWHU WKH.LQJRI'XULQ·V /LQHUHPRYHVKLVFRXUWWRWKH*UH\ 0RXQWDLQV7$ $OWKRXJKVHYHUDO(DVWHUOLQJ IRUD\VEULHIO\LQWHUUXSWWKHLUVWDEOHDIIDLUVWKH/DNHIRON 'DOHIRON 'ZDUYHV DQG *UDPX]RIFHQWUDO 5KRYDQLRQ KDYHOLWWOHWURXEOHGHIHQGLQJWKHLUZHDOWKDQGPDLQWDLQLQJ WKHLUFRPIRUWDEOHDFFRUGV

7+(6/$<,1*2)60$8* 7KHLUHIXO)LUHGUDNHDZDNHQVRQFHDJDLQLQ7$ ZUHDNLQJ KDYRF XSRQ (VJDURWK $OWKRXJK WKH WRZQ LV ODUJHO\GHVWUR\HG6PDXJLVVODLQ E\%DUG1R ´%HDUG 6FRSµ WKH%RZPDQ(VJDURWK·V:HQGULKWDQGDGHVFHQ GHQWRI*LULRQ RI'DOH ,Q WKHDIWHUPDWK RIWKH ZRUP·V GHPLVH%DUGOHDGVWKHIRUFHVRI/DNHWRZQQRUWKWRWKH VORSHV RIWKH /RQHO\0RXQWDLQ WR VXSSRUW WKH FUXVDGH DJDLQVWDQLQYDGLQJIRUFHRI2UFVDQGZROYHV7KH/DNH PHQMRLQWKH(OYHVDQG'ZDUYHVLQYLFWRU\DWWKH%DWWOHRI )LYH$UPLHV 8VLQJKLVVKDUHRIWKH'UDJRQKRDUG%DUGDQGRWKHU GLVSODFHG'DOHIRONUHIRXQG'DOH+LVSHRSOHFRPHWREH NQRZQDVWKH´%DUGLQJVµ'iLQ,,´,URQIRRWµEHFRPHVWKH QHZ.LQJ8QGHUWKH0RXQWDLQDQGPDQ\RI'XULQ·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iLQ,,´,URQIRRWµ DUHVODLQ7KH(DVWHUOLQJVWKHQRFFXS\'DOHDQGVHWVLHJH WR (UHERU 7KHUH WKH IRXU SHRSOHV³WKH /DNHIRON *UDPX] %DUGLQJV DQG 'ZDUYHV³WDNH UHIXJH %DUG ,, DQG 7KRULQ ,,, ILQDOO\ OHDG DQ DUP\ RXWRIWKH /RQHO\ 0RXQWDLQDQGVXFFHHGLQFUXVKLQJWKHLQYDGHUV7KH)UHH 3HRSOHV UHRFFXS\ (VJDURWK DQG 'DOH TXLFNO\ UHSDLULQJ WKHLUKDOORZHGWRZQV/LIHFRQWLQXHVPXFKDVEHIRUHIRU ZHOOLQWRWKH)RXUWK$JH

60$8*·6'(62/$7,21 $OO WKLV FKDQJHV GUDPDWLFDOO\ LQ 7$ ZKHQ 6PDXJWKH*ROGHQKHDUVRIWKHZHDOWKRI(UHERUDQGIOLHV 7+(7$/(2)<($56 VRXWKIURPWKH*UH\0RXQWDLQVWRLQYHVWLJDWH7KUyUWKH 6(&21'$*( ´%ROGµ³WKH´.LQJ8QGHUWKH0RXQWDLQµ³HVFDSHVZLWK 7KUiLQ,, DQG7KRULQ ,, 1R ´%ROG 2QHµODWHUFDOOHG FD7KH1HQHGDLQ$UKQHULQVSHDNLQJ KXQWHUVDQGILVKHUIRONRFFXS\ULYHUYDOOH\VDQGODNH ´2DNHQVKLHOGµ IURPWKHGHVWUXFWLRQRIWKH:RUPEXW VLGHVWKURXJKRXWFHQWUDODQGQRUWKHUQ5KRYDQLRQ PDQ\ RWKHU 'ZDUYHV SHULVK 7KH )LUHGUDNH UD]HV DQG 7KRVHDURXQG/RQJ/DNHOLYHLQKRXVHVHUHFWHGRQ GHVWUR\V'DOHVOD\V*LULRQLWV7K\QDQGUHGXFHV(VJDURWK SLOLQJVVHWLQWKHDUHD·VSOHQWLIXOPXGG\PDUVKDQG WRDKDQGIXORIVPROGHULQJSLOLQJV+DYLQJGHYDVWDWHGWKH ODNHEHGV DUHDWKHGUHDGIXOZRUPJDWKHUVDOOWKH'ZDUYHQWUHDVXUH LQDJUHDWSLOHEHQHDWKWKH/RQHO\0RXQWDLQ+HVHWWOHV FD7KUDQGXLOKLVVLUH2URSKHUDQGWKHLUNLQ GRZQWRDORQJQDSDWRSWKHJROGHQKHDS OHDYHZHVWHUQ(ULDGRUDQGPRYHWR(UHJLRQ6KRUWO\ DIWHUIULFWLRQZLWKWKH1ROGRUFDXVHVWKHPWRFURVV /DNHWRZQ·VVXUYLYRUVUHEXLOGWKHLUWRZQZLWKWKHKHOS WKH0LVW\0RXQWDLQVDQGVHWWOHLQ*UHHQZRRGWKH RIUHIXJHHV IURP 'DOH ZKLFK UHPDLQV DEDQGRQHG 7KH *UHDWDPRQJVWRWKHU(OYHVDOUHDG\UHVLGLQJWKHUH UHEXLOW SODWIRUPVHWWOHPHQW LV UHFWDQJXODU DQG VPDOOHU WKDQ LWVSUHGHFHVVRU ,WKDUERUV DVLQJOH FHQWUDO 0DUNHW *DODGULHOHVWDEOLVKHV/yULHQ 3RRO/LIHLQ(VJDURWKVORZO\UHWXUQVWRQRUPDODOWKRXJK FD 7KH'ZDUYHVRI0RULDEXLOGDEULGJH WKHYROXPHRIWUDGHLVQRWZKDWLWRQFHZDVDQGIRONVWLOO 1RJRWKLDQWDFURVVWKH$QGXLQOLQNLQJWKH2OG VSHDNRIWKHQHDUE\GR]LQJ)LUHGUDNHZLWKGUHDG )RUHVW5RDGZLWKWKH3DVVRI,PODGULVWKURXJKWKH 0LVW\0RXQWDLQV

FD$GDQIRONUHVLGHDW'DOH FD2URSKHUHVWDEOLVKHVKLVFRXUWDW&DUDV 1HOGRUODV6´0RDWHG)RUWUHVVRIWKH%HHFKOHDI ODWHUFDOOHG&DUDV$PDUWK6´0RDWHG)RUWUHVVRI 'RRPµ 7KH/DVW$OOLDQFHRI(OYHVDQG0HQLVIRUPHGWR EDWWOH6DXURQ 7KH:RRGHOYHVKROGWKH1RJRWKLDQWDJDLQVW WKH(QHP\XQWLOWKHIRUFHVRI(OHQGLODQG*LOJDODG FURVVWKH0LVW\0RXQWDLQVDQGWKH$QGXLQ 2URSKHU7KUDQGXLODQG*UHHQZRRG(OYHV PDUFKVRXWKZLWKWKHPDLQKRVWRIWKH/DVW$OOLDQFH WRWKH%DWWOHRI'DJRUODG7KH\DUHYLFWRULRXVEXW 2URSKHUDQGRIKLV:RRGHOYHVSHULVK 6DXURQLVGHIHDWHGE\WKH/DVW$OOLDQFH0DQ\ :RRGHOYHVRI*UHHQZRRGPRXUQLQJWKHLUORVWNLQ GHSDUW7KUDQGXLO·VUHDOP

7+,5'$*( FD )LUVWWKH'DOHIRONDQGWKHQWKH/DNHIRON PLJUDWHDFURVVWKH0LVW\0RXQWDLQVIURP(ULDGRU LQWR5KRYDQLRQ FD&HOHEDQQRQLVIRXQGHGE\VRPHRI7KUDQGXLO·V :RRGHOYHV FD7KHVHFRQGZDYHRIXUEDQ1RUWKURQ ´/DNHIRONµ ZKRVHWWOHWKH(DVW%LJKWRI0LUNZRRG DQGRWKHU1RUWKURQVZKRZLOOODWHUEHFRPHWKH *UDPX]PLJUDWHWR5KRYDQLRQYLDWKH,VHQ*DS FD(DVWHUOLQJVIURP5KQFURVVWKURXJK 'DJRUODGEXWDUHHYHQWXDOO\GHIHDWHGE\*RQGRU ZLWK WKHDLGRI1RUWKURQVIURP5KRYDQLRQ *RQGRU·VERUGHUH[WHQGVWRHQFRPSDVV'RU 5K~QHQ FD7KH1RUWKPDQPDUNHWSODFHVLWXDWHGDW WKHPRXWKRIWKH5LYHU5XQQLQJEHFRPHVDPDMRU WUDGLQJFHQWHU/RFDWHGRQWKHZHVWHUQVKRUHRI /RQJ/DNHLWEHFRPHVNQRZQDV%XKU$IRQRU ´/DNHWRZQµ FD/RQGDURWK LVVHWWOHGE\/DNHIRON 7KH IRXQGLQJRI(VJDURWKRQWKH/DNH6LWXDWHG RQSLOLQJVWKHWRZQVWDQGVQHDUWKHROGHUODUJHU VHWWOHPHQW RI/DNHWRZQ FD 7KH1HQDGDQWRZQRI%XKU0DHWKHOHQMR\V LWVVWDWXVDVWKHODUJHVWDQGZHDOWKLHVWSRUWRQWKH $QGXLQ QRUWKRIWKH3LOODUVRI$UJRQDWK)XUWKHU QRUWKWKH(VWDUDYsIRUWRI%XKU:UDHFLVHVWDE OLVKHG'ZDUYHVEHJLQWRPLQHWKH,URQ+LOOV GHOYLQJDFDSLWDODW$]DQXOLPEDUGP 8QEHNQRZQVWWRWKHLQKDELWDQWVRI*UHHQZRRG 6DXURQHQWHUV$PRQ/DQFUHQDPLQJLW'RO*XOGXU DQGPDNLQJLWKLVFHQWHURIRSHUDWLRQV$VKDGRZ JURZVRYHU*UHHQZRRGWKH*UHDWZKLFKPDQ\EHJLQ WRFDOO0LUNZRRG7UDYHODORQJWKH2OG)RUHVW 5RDGJURZVLQFUHDVLQJO\GDQJHURXVE\7$ WKHWKRURXJKIDUH LVHIIHFWLYHO\XQXVDEOH

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´/DNHWRZQµ FD9LGXJDYLD7K\QRIWKH:DLOGXQJDVFODQ ORRVHO\XQLWHVWKHQRUWKHUQ1RUWKURQ7K\QVRIWKH (DVW%LJKWWKHeRWKUDLPDQGRVWHQVLEO\WKH*UDPX] WKH/DNHIRONDQGWKH'DOHIRON +HGHFODUHV KLPVHOI.LQJRI5KRYDQLRQ+LVNLQJGRP LVVKRUW OLYHGDQGGLVLQWHJUDWHVLQWKH\HDUVDIWHUKLVGHDWK FD ,QUHVSRQVHWRLQFUHDVLQJO\EROG (DVWHUOLQJDWWDFNVLQ'RU5K~QHQ9LGXJDYLD·V 1RUWKURQVDOO\ZLWK*RQGRU7KH'~QHGDLQDQG 1RUWKPHQODXQFKDFDPSDLJQWKDWHUDGLFDWHVWKH KRVWLOH(DVWHUOLQJSUHVHQFHZHVWRIWKH6HDRI5KQ 9LGXJDYLDHVWDEOLVKHV%XKU:LGXLQWKH(DVW %LJKWDVKLVFDSLWDO FD9DODFDUKHLURI*RQGRUPDUULHV9LGXJDYLD·V GDXJKWHU9LGXPDYLWKHLUVRQ(OGDFDULVERUQ %XKU+OpRZDND%XKU:DOGPDKULVIRXQGHG LQWKH(DVW%LJKW FD 7KHUHDOPRI$QJPDULVIRXQGHG%XKU 0DHWKHOWKH1HQHGDLQFDSLWDOUHDFKHVLWVKHLJKW FD %XKU:DOGODHVDND6WUD\KROGLVHVWDEOLVKHG E\IUHHGERQGVHUYDQWVDQG´RXWFDVWµ(DVW%LJKWHUV DQG*UDPX] FD 6XSSO\WUDLQVEHJLQWUDYHOOLQJIURP5KQWR $QJPDUDORQJWKH0HQ0LWKULQGXULQJWKHVXPPHU DQGDXWXPQPRQWKV FD0DQ\6WRRU+REELWVUHFURVVWKH0LVW\0RXQ WDLQVDQGUHVHWWOHDW'XQGRNLQWKH*ODGGHQ)LHOGV FD $WWDFNVSHUSHWUDWHGE\1RUWKURQV DFWXDOO\PHUFHQDULHVLQWKHSD\RI$UWKHGDLQ XSRQ WKHVXSSO\WUDLQVRI$QJPDULQFUHDVH FD 7KHeRWKUDLPIRXQG%XKU$LOJUD 8QGHUSUHVVXUHIURPWKH:LWFKNLQJ*XQGDEDG VHQGVWKH$VKDUDJ*REOLQWULEHWRWKHHDVWHUQ*UH\ 0RXQWDLQVWRJXDUGVXSSO\WUDLQV FD 7KHVHDVRQDO6DJDWKIRUWRI/DUKX]LV IRXQGHGLQWKHQRUWKHUQ,URQ+LOOV

FD 5LDYRGRQWKHORZHU&HOGXLQLVHVWDEOLVKHG DVWKH6DJDWK´FDSLWDOµ (OGDFDUDVVXPHVWKHWKURQHRI*RQGRU&DVWDPLU DQGWKHUHEHOORUGVUHIXVLQJWRDFNQRZOHGJHD.LQJ ZKRLVKDOI1RUWKURQUHYROWEHJLQQLQJWKH.LQ VWULIH (OGDFDULVIRUFHGWRIOHH*RQGRU+HWDNHVUHIXJH DW%XKU:LGXZLWKKLVPRWKHU·VSHRSOH 7KH'ZDUYHVRI0RULDHVWDEOLVKDQRXWSRVWDW 0RXQW*RQGPDHJORPLQWKHFHQWUDO*UH\0RXQ WDLQVFDOOHG6LOYHUSOXQJH (OGDFDU·VIRUFHVEHJLQUDLGLQJWKHHDVWHUQERUGHUV RI*RQGRU (OGDFDUUHWXUQVWR*RQGRU:LWKERWK1RUWKURQ DQG'~QDGDQDOOLHVKHGHIHDWVWKHIRUFHVRIWKHUHEHO ORUGVDQGVOD\V&DVWDPLUWKH8VXUSHU FD /DNHWRZQ VSRSXODWLRQVZHOOVZLWK 1RUWKURQPLJUDWLRQVXSWKH&HOGXLQ FD 'ZDUYLVKVHWWOHUVIURP$]DQXOLPEDUGPLQ WKH,URQ+LOOVIRXQGWKHQHDUE\GHOYLQJ$[H 0RXQWDLQ 7KHILUVWRIWKH'UDJRQVEHJLQWRVWLULQ WKH*UH\0RXQWDLQV %XKU0DUOLQJDWWKHFRQIOXHQFHRIWKH&HOGXLQDQG LWVWULEXWDU\WKH$UGUXLJD1R´&RSSHU'UDJRQµ LV FRQTXHUHGDQGRFFXSLHGE\WKHe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·V LQKDELWDQWV5LRWVEUHDNRXWLQ/DNHWRZQRYHU IRRGDQGVHYHUDODUHDVLQWKH&ODGKRUDUHGHVWUR\HG

E\VHYHUHILUHV+HDY\VQRZVLQHDUO\VSULQJFROODSVH DVL]HDEOHDUHDRIWKHPDLQ /DNHWRZQSODWIRUP SUHYLRXVO\ZHDNHQHGE\ILUHGDPDJH$IWHUDPHDJHU KDUYHVW2GDJDYLDSHUVRQDOO\YLVLWVWKH(OYHQNLQJ·V FRXUWWRSOHDGIRUDVVLVWDQFH7KH:RRGHOYHVDJUHH WRFRQWULEXWHPXFKQHHGHGSURYLVLRQVWR/DNH WRZQ·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

;Xc\Xe[k_\Cfe\cp DflekX`e

18

1854-1856 Easterling victories force Gondor to withdraw its shattered armies from southern Rhovanion. 1856-99 The Éothraim are defeated during the Wainrider Wars by a great confederation of Easterling tribes. Esgaroth and Dale are overrun and occupied by these Wainriders. Many Lake-folk, Dalefolk, and Gramuz flee their homelands and are absorbed into the Éothraim, who migrate across the Anduin and settle in the west-central Anduin vales, between the Old Ford and the Gladden Fields. 1899 The Wainrider kingdom falls, and the overlords retreat to the east when the successful Northron Revolt drives them out of Rhovanion. 1899-1977 In their second homeland, the Éothraim assimilate their compatriots and become the Éothéod. 1944 Allied with the Variags of Khand, the Wainriders attack Gondor and Rhovanion. The Haradrim strike Gondor from the south. The Gondorian King is slain, but the invaders are vanquished from the north of Ithilien in the Battle of the Camp. Devastated by war and plague, the Northrons of Wilderland remain free but few. ca. 1950 More Dragons begin appearing in the Grey Mountains. 1975 The North-kingdom of the Dúnedain ends; the Witch-king’s army is defeated, and Angmar falls. 1975-1980 With the collapse of Angmar, Gundabad loses its hold over the far-flung Goblin tribes of the Grey Mountains. The Asharag and the Larzoguhoth stop sending tribute to Gundabad. 1977 The Éothéod are led north by Frumgar. This has a disastrous effect on Gundabad. 1980 Delving deep beneath Caradhras, Durin’s Folk in Moria unleash a Balrog. Durin IV is slain. The Balrog forces them from the lower levels. 1981 Náin I is slain in a vain sortie against the Balrog; the Dwarves abandon Moria. Many flee north through the Anduin vales, while others, under Thráin I (the new King), go east through Mirkwood. ca. 1990 Most of Durin’s Folk gather at the Grey Mountains. They begin to establish themselves in the region. 1994 Durin’s Folk found a silver mine in the Grey Mountains (later known as Thundercleft). 1999 Thráin I and the rest of Durin’s Folk settle at Erebor. 1995-2000 Scatha begins his raids into Éothéod lands. 2000 The Dwarves discover the Arkenstone beneath Erebor. Saidalbuirh, the homestead of the Dale-folk Dalethéod clan at the western foot of Erebor, is ceded to the Dwarves. ca. 2001 Fram of the Éothéod slays Scatha. Esgaroth reaches the apex of its prosperity.

2014 Stahnoholt, the homestead of the Dale-folk Stahnothéod clan, is abandoned. Dale’s population grows and becomes increasingly cosmopolitan, and clan structures begins to break down. 2001-2500 Following the death of Scatha, the Dragons are not seen for many years. ca. 2001-2005 Using the Dragon hoard, Fram rebuilds the old Estaravë fort, Buhr Wraec, overlooking the Langwell. He creates a new capital for the Éothéod, naming it Buhr Fram, and the settlement soon surpasses Buhr Maethel as the center of commerce in the upper Anduin vales. 2003 The two sundered branches of Durin’s Folk, at Erebor and Thundercleft, reestablish contact. Thráin I learns of the fate of Silverplunge. 2005 Learning of Fram’s wealth, Thráin I of Erebor demands he yield the treasure. No friend of Dwarves, Fram sends an insulting note of refusal accompanied by a gift of a necklace made from Scatha’s teeth. Soon after, Fram is murdered. The Éothéod blame the Dwarves for his death, and an abiding enmity between the two peoples is spawned. 2050-2150 The Dwarves in the North expand their mining activities. Silverpit, Long Peak, and Nordûm are established. Many Dwarves from Erebor remove to the Grey Mountains. 2086 Narvi V chooses to go into exile in the Grey Mountains, taking with him two hundred of his followers from Erebor. They are never seen again. 2210 Thorin I, the new King under the Mountain, leaves Erebor and goes north to the Grey Mountains. 2360 The Asharag tribe is wiped out by the Dwarves. 2510-2512 A new Easterling threat arises. The Balchoth confederacy sweeps through southern Rhovanion and across the Anduin. Eorl the Young and the Éothéod ride south and defeat an army of Goblins and Balchoth on the Field of Celebrant. Cirion, the Steward of Gondor, in return for the Oath of Eorl, grants the Éothéod the territory of Calenardhon. The Éothéod remove south to settle in Calenardhon. Deserted, Buhr Fram soon falls into ruin and is looted by the Goblins of Gundabad, who have re-inherited control of the upper Anduin vales. ca. 2550 The Dragons begin to stir again in the Withered Heath. 2570 Smaug the Golden flies south from the Barl Synac. He makes his lair at Anvilmount in the Grey Mountains, a vast delving that was an Adan holy site in the First Age. 2589 The Cold-drake Ando-anca slays the Dwarf-king Dáin I. The worm sacks Nor-dûm, the last of the northern Dwarf holds to fall to the Dragons. The Dwarves abandon the Grey Mountains. Many return to Erebor with Thrór, the new King. Others go with Grór to the Iron Hills.

FD/HJRODVWKH(OIVRQRI7KUDQGXLOWDNHV FRPPDQGRIDQHOLWHQLQHSHUVRQ7DXUDQFD6´+LOO -DZµ 8LDOFX6´7ZLOLJKW%RZµ 6PDXJOHDUQVRIWKHQHZZHDOWKDW(UHERU+H OHDYHVWKH*UH\0RXQWDLQVDQGGHVFHQGVXSRQWKH /RQHO\0RXQWDLQ7KUyU7KUiLQ,,DQG7KRULQ,, ´2DNHQVKLHOGµHVFDSHEXWIHZRWKHU'ZDUYHV VXUYLYH'DOHDQG/DNHWRZQDUHGHVWUR\HGDQG *LULRQ/RUGRI'DOHLVVODLQ FD/DNHWRZQLVUHEXLOWRQDVPDOOHUVFDOH ZLWKWKH DLG RI'DOHIRONUHIXJHHV³LWV QHZSODW IRUPLVUHFWDQJXODUDQGKDVEXWRQHFHQWUDOKDUERU $]RJWKH8UXN$VKGXUENRI0RXQW *XQGDEDGDVVHUWVKLVFRQWURORYHUWKH*UH\ 0RXQWDLQV*REOLQWULEXWHDJDLQIORZVWRKLV FRIIHUV 7KUiLQ,,.LQJRI'XULQ·V)RONGHFLGHV WRUHWXUQWR(UHERU+HLVDWWDFNHGDQGSXUVXHGLQWR 0LUNZRRGWKHQFDSWXUHGDQGLPSULVRQHGLQ'RO *XOGXU /DNHWRZQLVGHPROLVKHGE\6PDXJZKRLVVODLQ GXULQJWKHDVVDXOWE\%DUGWKH%RZPDQDGHVFHQ GDQWRI*LULRQ RI'DOH7KH%DWWOHRI)LYH$UPLHV RFFXUVRQWKHVORSHVRI(UHERU7KRULQ,, ´2DNHQVKLHOGµDQG%ROJDUHVODLQ7KH*REOLQVRI WKH1RUWKDUHVHYHUHO\GLPLQLVKHGLQVWUHQJWK%DUG DQGKLVIROORZHUVUHIRXQG'DOHKHUHDIWHUWKH'DOH IRONDUHNQRZQDV%DUGLQJV FD /DNHWRZQLVUHEXLOWIXUWKHUQRUWKRQWKH /RQJ/DNH 7KH:DURIWKH5LQJ/DNHWRZQLV RYHUUXQE\(DVWHUOLQJV/DNHIRON'DOHIRONDQG WKH'ZDUYHVRI(UHERUPDNHDVWDQGDJDLQVWWKH (DVWHUOLQJVDWWKH%DWWOHRI'DOHEXWDUHGHIHDWHG 'iLQ,, ´,URQIRRWµDQG%UDQGRI'DOHDUHVODLQDQG WKHUHPQDQWVRIWKHLUDUPLHVWDNHUHIXJHDW(UHERU DQGDUHEHVLHJHG7KRULQ,,,DQG%DUG,,OHDGDVDOO\ WKDWEUHDNVWKHVLHJHRI(UHERUDQGGHIHDWVWKH (DVWHUOLQJV7KUDQGXLO·V:RRGHOYHVDQGWKH :RRGIRONDUHYLFWRULRXVDJDLQVWWKH*REOLQIRUFHV RI'RO*XOGXULQWKH%DWWOH8QGHUWKH7UHHVRI 0LUNZRRG

)2857+$*( (DUO\
6,7(62)127( (VJDURWK LVVWUDWHJLFDOO\VLWXDWHGDWWKHFRQIOXHQFHRI WZR ULYHU YDOOH\V WKH 1DQ 7DXUGXLQ 6 ´)RUHVW 5LYHU 9DOOH\µ DQGWKH1DQ&HOGXLQ6´5LYHU5XQQLQJ9DO OH\µ 7KHLPPHGLDWHDUHDWKHYDOHDURXQG/RQJ/DNHLV NQRZQ DV WKH1DQ $QQHQ 3DUWRIWKH 1DQ&HOGXLQ LW UHIOHFWV WKH JODFLDO RULJLQ RIPRVW RIWKH ODQGVFDSH LQ QRUWKHUQ 5KRYDQLRQ*UHDW LFHVKHHWV ERUQHRXW RIWKH PRXQWDLQV LQ WKH (OGHU 'D\V VFXOSWHG WKLV FRRO KLOO\ ORFDOHLQWRDEHDXWLIXOURFN\GRPDLQ

7+(/$1'6&$3( (VJDURWKVWDQGVXSRQDUHODWLYHO\VKDOORZVKHOIQHDUWKH ZHVWHUQ VKRUH RI WKH /RQJ /DNH D GHHS PHUH RIWHQ PHDVXULQJ D KXQGUHG RU PRUH IDWKRPV LQ GHSWK 7KH ZHVWHUQVKRUHULVHVUDWKHUJHQWO\SURYLGLQJODQGVFDSHWKDW LVVWHHSLQSODFHVEXWVWLOODUDEOH,WKDUERUVWKHRQO\JRRG PRRULQJV DQG IDUPVLWHV IRXQG LQ WKH 1DQ $QQHQ 6 ´/RQJ/DNH9DOOH\µ 0RVWRIWKHYDOH·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

*(2*5$3+,&7(506 7UDYHOOHUVQRWIDPLOLDUZLWKWKH1DQ&HOGXLQIDFHD FRQIXVLQJ PL[ RIJHRJUDSKLF WHUPV IRU HYHU\ JURXS DVVLJQVWKHLURZQQDPHWRWKHVLWHVHYHQWKRVHRFFXSLHG E\ RWKHU SHRSOHV 6LQFH WKH1RUWKPHQ FRPSULVH WKH PDMRULW\RIIRONKRZHYHUZHHPSOR\WKHLUODEHOV$OLVW RI1RUWKURQ)RUDGDQLQ QDPHVSHUWDLQLQJWRWKHDUHD·V PRVWSURPLQHQWIHDWXUHVDQGWUDYHO URXWHVIROORZV

)RUDGDQLQ :HVWURQ 6LQGDULQ $HOIJDLQJ ´(OIURDGµ (GKHOPHQ $LUQ'XQQDV ´,URQ+LOOVµ (P\Q(QJULQ $QOLJEXLUF ´/RQHO\0RXQWDLQµ (UHERU $[YDHVWHU ´$[HZDWHUµ &tUQHQ 'DOHZHJ ´/RQHO\0RXQWDLQ5RDGµ 0HQLQ(UHERU 'ZHUURZHJ ´'ZDUI 5RDGµ 0HQL1DXJULP 'ZLPPHULOO ´(QFKDQWHG5LYHUµ *XOGXLQ $HVGZHJ ´(DVW5RDGµ 0HQ5K~QHQ %XLUFDV ´)HOOVµ 3LQQDWK *UDLJ +yODV ´*UH\0RXQWDLQVµ (UHG0LWKULQ *UDLJZHJ ´*UH\5RDGµ 0HQ0LWKULQ +yOYDHVWHU ´0RXQWDLQ6WUHDPµ (P\QHQ 6pDKOLQQ ´0HUH·V(QG)DOOVµ /LQGDO /DQJVpDK ´/RQJ/DNHµ $QQHQ /DQJ0DULVK ´/RQJ0DUVKHVµ $HOLQQDQ 0DUGULOO ´6ZDPS\9DOOH\6WUHDPµ 1DQDHOLQKtULO 0HGHVZLOO *ROGHQ6WUHDPµ *OyUVtULO 0HLUFZLGX ´0LUNZRRGµ 7DXUH1GDHGHORV 6FDHUYDHVWHU ´5HGZDWHUµ &DUQHQ 5LQQHOIOyWK ´5LYHU5XQQLQJµ &HOGXLQ 5LQQHOZHJ ´'RUZLQLRQ5RDGµ 0HQ'RUZLQLRQ 9LGXOLGK ´)RUHVW*DWHµ 7DXUDQQRQ 9LGX0DULVK ´)RUHVW0DUVKHVµ 7DXUDHOLQ 9LGXZDHG ´2OG)RUHVW5RDG)RUGµ ,DFK&HOGXLQ 9LGXZHJ ´2OG)RUHVW5RDGµ 0HQL1DXJULP 9LGXZHOO ´)RUHVW5LYHUµ 7DXUGXLQ 1RWH7KHYDULHG)RUDGDQLQWRQJXHVRI5KRYDQLRQ RIWHQHYROYHTXLFNO\DQGLQYDULDEO\HPSOR\ LUUHJXODUUXOHV7KLVLVSDUWLFXODUO\WUXHRI VSHOOLQJV´9LGXµIRULQVWDQFHLVRIWHQVSHOOHG ´:LGXµ

5(*,21$/6,7(6 $WZRSDJHUHJLRQDOPDSRI/DNHWRZQDQGLWVKLQWHU ODQGVFDQEHIRXQGRQWKHFRORULQVHUW$EODFN ZKLWH YHUVLRQ RI WKLV PDS DSSHDUV KHUH 1XPEHUV XVHG WR LGHQWLI\SDUWLFXODUVLWHVEHORZFRUUHVSRQGWRWKHEODFN ZKLWHJDPHPDVWHU·VPDS /DLURI.O\D[DU%6 ´,PSHWXRXV6SDZQµ .O\D[DU WKHSURJHQ\RI$QGRDQFDLVD\RXQJ&ROGGUDNHMXVW \HDUROGLQ7$, ,UHURFNDERYH:ROI)ODW+RPHWRWKHEDGWHPSHUHG )LUHGUDNH/HXFDUXWK6´:UDWKIXO:RUPµ &DYHV RIÔOXQG 6 ´8WWHUGDUNµ 7KH ODLU RIWKH UHFOXVLYH&ROGGUDNH$JEXUDQDU%64´)HOO'DUNILUHµ 6RUURZGURS$ERGHRIWKHDQFLHQW&ROGGUDNH'\QFD 1R%6´)RXO6SRRU6LOHQW-DZVµ 0RXQW8GQDQFD6´-DZVRI8GQµ 7KHODLURIWKH SRZHUIXO&ROGGUDNH$QGRDQFD4´,URQ0DZµ RIWKH OLQHRI*ODXUXQJ4 ´*ROGHQ$ERPLQDWLRQµ SULRUWR KLV VDFNLQJ RI WKH 'ZDUI FRORQ\ RI 1RUUGP .K ´1RUWK0DQVLRQµ LQ7$ $QYLOPRXQWORFDWHGILYHPLOHVZHVWRIWKHPDSHGJH $ )LUVW$JHKRO\VLWHRIWKHP\VWHULRXV´0LGGOH0HQµ WKLVSHFXOLDUO\VKDSHGSHDNLVKRPHWR6PDXJIURP7$ /DLURI1LPDQDXU1LPDQDXU6´*UHDW:KLWH)LUHµ LVDJKRVWO\ZKLWH,FHGUDNH *ROG+LOO7KHODLURI,WDQJDVW1R´*XHVW(DWHUµ D SRZHUIXO )LUHGUDNH 6XUJD[8NRJ2U´%ODFN&KDVPRI8NRJµ 7KHODLU RI RYHU IRXU KXQGUHG $VKDUDJ %6 ´)LUVW *XDUGµ *REOLQV OHG E\ 8NRJ 2U ´+HDG +XQJHUHUµ WKH /DPH 9DUJXUDW2U´6WRQ\5LGJHµ 7KHODLURIDSSUR[L PDWHO\WZRKXQGUHG/DU]RJXKRWK2U´7DWWRRHGWULEHµ *REOLQVOHGE\0RJVKL2U´0RVW&UXHOµ %XKU 7KXUDVLJ 1R ´*UH\ 3DVV 6WURQJKROGµ $ PLQLQJ DQG WUDSSLQJ FRPPXQLW\ RI DERXW D KXQGUHG /DNHIRONDQGILIW\*UDPX]RIWKHVPDOO%HDUZ\QDV1R ´%RDU )ULHQGVµ FODQ DQRWKHU ILIW\ *UDPX]OLYH LQ WKH VXUURXQGLQJFRXQWU\VLGH $QDQQXDO IDLULV KHOG LQODWH VSULQJ DQG DWWUDFWV IRON IURP 'DOH HJ %DULF DQG (VJDURWKHJ*QRUQ %\7$ LQFUHDVLQJGDQJHU IURP*REOLQVDQG'UDJRQVIRUFHVLQKDELWDQWVWRDEDQGRQ WKHWRZQDQGPRYHVRXWK &UXQGHO1R´&DYLW\ /LPHVWRQH3LWµORFDWHG PLOHV RIIWKH PDS HGJH 7KH ODLU RI6FDWKD·V VWULSOLQJ VSDZQ +\DUOHXFD 'UHGOLF 61R ´6RXWKZRUP WKH 'UHDGIXOµ WKH&ROGGUDNH %HUDIHOG1R´%HDU0HDGRZµORFDWHGPLOHVRII WKHPDSHGJH +DUID[%HRUZ\Q·VPXLGZHRUKDLPDQ1R ´0DQRUµ %\7$ %HLMDEDUOLYLQJWKLVIDUQRUWK KDYHUHPRYHGWKHPVHOYHVDQGMRLQHGWKHLUNLQLQWKHVRXWK WR DYRLG LQFUHDVLQJO\ IUHTXHQW 'UDJRQ DQG *REOLQ DV VDXOWV

$OGXUOLQJHDUG 1R ´+RPH RIWKH $OGXUOLQJDVµ 7KH I\UJD 1R ´+ROG &URIWµ RI WKH 'DOHIRON $OGXUOLQJDV1R´2OG&KLHI3HRSOHµ FODQ/LWWOHPRUH WKDQDIDPLO\IDUPE\7$ZKHQ6DPXJGHVWUR\V LW 6DLGDOEXLUK1R´0RXQWDLQ5HVLGHQFHµ 7KHI\UJD RIWKH 'DOHIRON 'DOHWKpRG 1R ´9DOOH\ )RONµ FODQ QHDUWKHHQWU\LQWRWKHFDYHVEHQHDWK(UHERU&HGHGWRWKH 'ZDUYHVRI(UHERULQ7$LWLVGHVWUR\HGE\6PDXJ LQ7$ )pRWOLQJHDUG1R´+RPHRIWKH)pRWOLQJDVµ 7KH I\UJDRIWKH'DOHIRON)pRWOLQJDV1R´:DUULRU3HRSOHµ FODQ/LWWOHPRUHWKDQDIDPLO\IDUPE\7$ZKHQ 6PDXJGHVWUR\VLW 'DOH 1R ´9DOOH\µ 7KH 'DOHIRON·V RQO\ PDMRU WRZQZLWKDSRSXODWLRQDURXQG$OVRWKHI\UJDRIWKH 'DOHIRON .U\WKpRG 1R6 ´5XQHIRONµ FODQ $IWHU 'XULQ·V)RONVHWWOH(UHERULQ7$'DOH·VSRSXOD WLRQ JURZV WKUHHIROG DV WKH LQFUHDVLQJO\ FRVPRSROLWDQ 'DOHIRONEHJLQWRDEDQGRQFODQKROGV,Q7$WKH VHWWOHPHQWLVUD]HGE\6PDXJWKH7HUULEOH6XUYLYRUVIOHH WR (VJDURWK ,W LV QRW UHRFFXSLHGXQWLO7$ 6HH 6HFWLRQIRUDPRUHGHWDLOHGGHVFULSWLRQ 6WDKQRKROW 1R ´'ZHOOLQJ RIWKH 6WDKQRWKpRGµ 7KH I\UJD RIWKH 'DOHIRON 6WDKQRWKpRG 1R ´6WRQH KRXVH)RONµ FODQ$EDQGRQHGLQ7$, 3HQVWRZ 1R ´+LOO 5HIXJHµ 7KH 0DHGZH 1R ´&URIW)DUPµ RIWKH/DNHWRZQUHIXJHH+UpRZDOGD6HH 6HFWLRQ IRUDPRUHGHWDLOHGGHVFULSWLRQ 5HIXJHH 0DHGZHQ 7KH KRPHV RI RWKHU 3ODJXH UHIXJHHV IURP (VJDURWK 6NHVVDKROF 1R ´6NHVVD·V +ROORZµ 6NHVVD WKH 7UROO·VFDYHODLU6HH6HFWLRQ IRUDPRUHGHWDLOHG GHVFULSWLRQ 1DQ0RUVHUHJ6´9DOHRI%ODFN%ORRGµ 7KHKROG RIWKHWHQ0DHJKLUULP6´3LHUFLQJ/RUGVµ DGHSWVRIWKH &XOWRIWKH/RQJ1LJKW /DUKX]/R ´3ODFH RI+X]µ 7KH FLWDGHO RIWKH 6DJDWKZDUORUG+X]RI$PRY,QWKHZLQWHUWKHWKUHH KXQGUHG UHVLGHQWV DUH DOO ZDUULRUV RU UHWDLQHUV 7KH SRSXODWLRQFDQJURZWRVHYHQKXQGUHGDQGILIW\GXULQJ WKHVXPPHUPRQWKV DV QRPDGLF IDPLOLHVMRLQ WKHVRO GLHUV $]DQXOLPEDUGP .K ´5HG 9DOOH\ 0DQVLRQµ 7KLVKROGRIDERXWILYHKXQGUHGDQGWZHQW\ILYHVWDOZDUW 'ZDUYHVLVUXOHGE\)XOOD,,,RI%DOOL·V)RON1RUWKURQV FDOOWKLVSODFH´$]DQµ %DUDNVKDWKU.K´$[H0RXQWDLQµ 2QHKXQGUHG DQGVHYHQW\ILYH'ZDUYHVUHVLGHKHUHDWWKHVRXUFHRIWKH $[HZDWHU XQGHU WKH OHDGHUVKLS RI$]DJKkO DYDVVDO RI )XOOD &DVKHUG1R ´6HGJH&RDUVH*UDVV+RPHµ 7KH FKLHI YLOODJH 1R ´0DHGZHGXNDVµ RI WKH *UDPX] :HQWODV1R´3LOODJHUVµ FODQDQGWKHVHDWRIWKH7K\Q 'XQQLDQ1R'DUNEURZQKDLUHG

':$5)+2/'6 :KLOH WKH 1DXJULP HPSOR\ 6LQGDULQ WHUPLQRORJ\ WKH\DUH RQO\ SHULRGLFDOO\ SURPLQHQW LQ WKH DIIDLUV RI QRUWKHUQ 5KRYDQLRQ 0RVW RI WKH WLPH WKHUH LV QR VL]HDEOH'ZDUYHQSUHVHQFHLQWKHUHJLRQRXWVLGHRIWKH ,URQ +LOOV 7KH 'ZDUI FRORQ\ RI 6LOYHUSOXQJH DW *RQGPDHJORP6´(FKRLQJ6WRQH3HDNµ LVHVWDEOLVKHG LQWKHZHVWHUQ*UH\0RXQWDLQVE\'ZDUYHVIURP0RULD LQ7$ EXWWKLVKROG LVDEDQGRQHGGXULQJWKH *UHDW3ODJXH5XPRUVVXJJHVWWKDW6LOYHUSOXQJHIHOOSUH\ WRWKHSHVWLOHQFHEXWWKHWUXWKLVVLPSOHUWKH'UDJRQ 6FDWKD1R´0DOHIDFWRUµ DWWDFNV6LOYHUSOXQJHLQ7$ DQGVOD\VDOOLWVLQKDELWDQWV (UHERU RIFRXUVH LV LQWHUPLWWHQWO\RFFXSLHG 6RRQ DIWHUWKHDEDQGRQPHQWRI0RULDLQ7$'ZDUI UHIXJHHVEHJLQWRZDQGHULQWRWKHUHJLRQ'XULQ·V)RON HVWDEOLVKKRPHVLQWKH*UH\0RXQWDLQVDW7KXQGHUFOHIW LQ 7$ DQG DW (UHERU LQ 7$ , 7KHLU SUHVHQFH VLJQLILFDQWO\ FKDQJHVWKHQDWXUHRIWUDGHDQG LQGXVWU\LQWKHUHJLRQ2WKHU*UH\0RXQWDLQ'ZDUYHQ FRORQLHVIROORZZLWKLQVHYHUDOGHFDGHV %\WKH·V KRZHYHU PDQ\GHOYLQJVKDYH IDOOHQ WR 'UDJRQV 'DOH DQG WKH /RQHO\ 0RXQWDLQ DUH VDFNHG E\ 6PDXJ WKH 7HUULEOHLQ7$DQGQHLWKHULVUHRFFXSLHGXQWLO WKHZRUP·VGHDWKLQ7$ :LWK\ERUG1R´:LWK\VKLHOGµ 7KHFKLHI0DHGZH GXNDV RIWKH*UDPX]%RUJLQJDV1R ´6HFXUHUVµ FODQ DQGWKHVHDWRIWKH7K\Q*UDPKDUW1R ´)LHUFH+RV WLOHµ /DLURIWKH 6pDKPDWKD1R ´/DNH6HUSHQWµ 6HH 6HFWLRQ IRUDPRUHGHWDLOHGGHVFULSWLRQ (VJDURWK6´+LGLQJ0LVWµ $/DNHPDQVHWWOHPHQW DQG WKH PRVW SURPLQHQW WRZQ LQ WKHUHJLRQ ,W LV DOVR FDOOHG ´/DNHWRZQµ %XLOWRQ DSODWIRUPRYHUWKH /RQJ /DNH(VJDURWKKDVDSRSXODWLRQRIVRPHVHYHQKXQGUHG DQGVHYHQW\LQKDELWDQWVLQWKH\HDUVDIWHUWKH3ODJXH6HH 6HFWLRQ DQG WKH FRORU LQVHUW IRU D PRUH GHWDLOHG OD\RXWGHVFULSWLRQ &RWVWRZ1R´+DPOHWµ $VPDOO/DNHPDQYLOODJH RI DSSUR[LPDWHO\ VHYHQW\ SHRSOH ,W LV NQRZQ IRU LWV EDVNHWVDQGSRWWHU\6HH6HFWLRQDQGWKHFRORULQVHUW IRUDPRUHGHWDLOHGGHVFULSWLRQ &HOHEDQQRQ 6 ´6LOYHU *DWHµ 7KH YLOODJH RIWKH 5DIWHOYHV,QFOXGLQJLWVLPPHGLDWHYLFLQLW\&HOHEDQQRQ KDV D SRSXODWLRQ RIDURXQG D KXQGUHG DQG WHQ 6LOYDQ 1DQGRDQG6LQGD(OYHV $UDGKU\QG6´+DOOVRIWKH(OYHQNLQJµ 7KHSDODFH RIWKH(OYHQNLQJWKH6LQGDORUG7KUDQGXLO +DXGKHQ$LJDQDXU6´0RXQGRIWKH)HOO)LUHµ $ GHVHUWHG:RRGHOIIHVWLYDOKLOO7KHPRXQGLVORFDWHG PLOHVRIIWKHPDSHGJH 8OJDUVWDW1R´8OJDU·V7RZQµ $VPDOO/DNHPDQ IDUPLQJYLOODJHRIDERXWWKLUW\ILYHSHRSOH

CXe[j jliifle[`e^ CXb\$kfne

/RQGDURWKE\/LQGDO6´0LVWVKDGRZHG+DYHQE\ 0HUH·V (QGµ 2QFH WKH SURPLQHQW KRPH WR RYHU WZR KXQGUHG /DNHPDQ /RQGDURWK VXIIHUHG JUHDWO\ LQ WKH 3ODJXH,WLVQRZQRPRUHWKDQDPDUJLQDOUXLQZLWKILIW\ ILYHLQKDELWDQWV6HH6HFWLRQDQGWKHFRORULQVHUWIRUD PRUHGHWDLOHGGHVFULSWLRQ '\Q 2GRULF 1R ´2GRULF·V +LOOµ $ GHVHUWHG *UDPX]0DHGZHQRZXVHGE\+RIGLQJ·VEDQGLWWURXSH RIDVWKHLUEDVHFDPS6HH6HFWLRQVDQGIRU DPRUHGHWDLOHGGHVFULSWLRQ )ROGEROG1R´+RXVH3DODFHµ 7KHFDYHUQ0DHGZH IRUDIDPLO\RIIRXU/HVVHU*LDQWV 6KLUNOXQDPDW 2U ´(QFKDQWHG 5LYHU 7KLFNHWµ 7KHKROGRI'UXUJDQJUD%6´:ROI-DZVµ DQGKLVVPDOO IRUFHRIVL[W\6KLUNDJ2U´7KLFNHWFOHDYHUVµ *REOLQV )KDKR]EORJUP 2U ´*UHDW +ROH RIWKH %ORRG\ 6NXOOµ 7KHPDLQKROGRIWKH%ORJUPKDL2U´2UFVRI WKH %ORRG\6NXOOµ ZLWK DSRSXODWLRQRIDURXQGQLQHW\ *REOLQVµ7KHVLWHLVORFDWHGPLOHVZHVWRIWKHPDS HGJH 6DUQ*RULZLQJ6´$EKRUUHQW6SUD\·V6WRQHµ 7KH FLWDGHORIWKHHYLOUHFOXVLYHVRUFHUHU/KDFKJOLQ6´*OHDP RIWKH/HDSLQJ)ODPHµ 7KHVSLUHLVORFDWHGPLOHVRII WKHPDSHGJH ,OPDU\HQ.HHS6´6WDU+RPHµ 2QFHWKHIURQWLHU NHHSRID'~QDGDQQREOHWKHFDVWOHLVQRZRFFXSLHGE\D VPDOO IRUFH RIWKLUW\ %ORJUXPKDL
0DHGZHGXNDVRIWKH*UDPX] +DWKpRG1R ´+HDWK 3ODLQVIRONµ FODQDQGWKHVHDWRIWKH7K\Q6KLOGHULF1R ´3HRSOH@µ FODQPRYHVKHUHIURP%XKU$LOJUD 1R ´6DFUHG 6WDJ6WURQJKROGµ LQ WKH VSULQJ RI7$ DIWHU WKH PXUGHU RIKLV EURWKHU 0DKUXLFV 1R ´+RUVH/RUGµ RQHWLPH7K\QRIWKH$LOJUDVFODQ7KH VLWHLVORFDWHGPLOHVRIIWKHPDSHGJH

'$/($1'(5(%25 7KHWRZQRI'DOH1R´9DOOH\µ LVDVPXFKDIURQWLHU FODQ KRPHVWHDG DV LW LV DQ XUEDQ VHWWOHPHQW 3HUFKHG EHWZHHQWZRVSXUVRIWKH/RQHO\0RXQWDLQ³+UDLIDQKyO 1R´5DYHQ+LOOµ WRWKHZHVWDQG6WDQKyO1R´4XDUU\ +LOOµ WRWKHHDVW³'DOHVWDQGVRQWKHZHVWHUQEDQNRID EHQG LQ WKH VZLIW5LYHU5XQQLQJ ,WOLHVMXVWEHORZ WKH SRLQW ZKHUH WKH ZDWHUZD\ VSLOOV IURP D FUDFN LQ WKH VRXWKHUQIDFHRI(UHERU7KHULYHUTXLFNO\ZLGHQVIRULW LVIHGE\DODUJHQXPEHURIVXEWHUUDQHDQEURRNVDQGFDUULHV DJUHDWYROXPHRIPRXQWDLQUXQRII2WKHUVWUHDPVMRLQWKH IORZDERYHWKHWRZQDQGDVDFRQVHTXHQFHWKHULYHULV UHPDUNDEO\ZLGHE\WKHWLPHLWUHDFKHV'DOH·VVPDOOVWRQH OLQHG KDUERU 7KH VHWWOHPHQW·V ULYHUVLGH ZKDUI +DLWKDVWUDHWDQ1R´+DUERU6WUHHWµ SURYLGHVODQGLQJ IRUWUDGLQJYHVVHOVIURP(VJDURWK 0RVWEXLOGLQJVDUHPDGHRIVWRQHDQGHLWKHUWKDWFKHG RUOLNHWKHDGPLQLVWUDWLYH.UDHWKLQJDVKXGHTXLSSHGZLWK VODWHVKLQJOHV2QHRUWZRVWRULHGVWUXFWXUHVZLWKURRP\ ORIWV DQG VWHHS URRIV DQG DW OHDVW RQH FKLPQH\ DUH WKH QRUP:LQGRZVDUHIHZDQGJHQHUDOO\VKXWWHUHGDQGVHW ZLWKWUDQVOXFHQWGLVFVKDSHGSDQHVRIJODVVZKLFKOHWLQ RQO\GLIIXVHOLJKW$VDUHVXOWWKH\DUHWKURZQRSHQZLWK WKH ILUVW KLQW RISOHDVDQW ZHDWKHU 'RRUV W\SLFDOO\ KDYH ERWKDGURSODWFKPHFKDQLVPDQGDQLJKWWLPHGUDZEDU 'DOH·V FUDIWVPHQ OLYH LQ WKH EDFN URRPV RU RQ WKH VHFRQG IORRURIWKHLUZRUNVKRSV /LNH RWKHUWRZQVIRON WKH\ NHHS D VPDOO YHJHWDEOHKHUE JDUGHQ LQ WKHLU \DUG 0RVWRZQVHYHUDO DQLPDOV ZKLFK WKH\KRXVHLQDVWHDOO 1R ´6WDEOHµ EHKLQG WKHLU GZHOOLQJ 7KH PDMRULW\ RI KRPHVLWHV DOVR LQFOXGH FRUUDOOHGIDPLO\ HQFORVXUHV ZLWK HLWKHUDZLWK\IHQFHRUDVWRXWHUSDOLVDGHZDOO,QIDFWD QXPEHUIDUPVPDOO ILHOGVZLWKLQ WKHWRZQUDPSDUW

The entire Dale community numbers less than two hundred. It is presided over by the Krythéod Thyn, Éoder and—some spiteful rumors say—his shrewish wife, Sulwyn. Part of the town serves as the fyrga (No. “Hold”) of the noble Krythéod clan. Their Adan ancestors inhabited a settlement on the same site for millennia before the Northmen arrived, long prior to the formal establishment of the Third Age town. After the arrival of the Dwarves of Durin (T.A. 1999), the urbanization of Dale accelerates. Fyrgas for the other four Dale-folk clans and many lesser family farms are depopulated or deserted as more people take up artisan trades and relocate to Dale. The town’s population swells steadily. The monthly market, held a week after Laketown’s, possesses significant regional importance. After Smaug the Golden arrives and takes up residence in the Lonely Mountain, Dale and Erebor are abandoned. The Dale-folk flee south to Esgaroth. Their exile lasts for 171 years (T.A. 2770-2941). Then, the leveled town is rebuilt and reinhabited by Bard and his followers after the warrior slays Smaug. His people later come to be known as “Bardings.” 1. Norlidh. A stout double gate provides access to Dale through an interruption in the town’s fortifications, a five foot high mound topped by a heavy 12' palisade wall with a narrow defensive platform 7' up on its inside perimeter. The lesser used of the two town gates, the Norlidh is usually manned by a single town-guard member during the day. It is closed shortly after dusk. 2. Glaes-wyrhtan Gard (No. “Glassmakers Yard”). Gelmir and Marach of the Aldurlingas clan live and ply their craft here, along with Marach’s Lake-woman wife, his son (an apprentice), Gelmir’s daughter, and two clansfolk assistants. The place is ringed by a high palisade fence of tree trunks 10' high. When Jirfelian or other important Aldurlingas clan members are in town, they stay here. 3. Ortgeardhud (No. “Orchard Hall”). Home to an Aldurlingas farmer and his son, who manage the apple, crabapple, and cherry orchards alongside Wicstraetan (No. “Market Street”). 4. Kraethingashud. The meeting hall and cultural center for the Dale-folk. Feasts are held in the main hall on halidegas (No. “Holidays”), and Minuial records important matters in the Daleboc (see 20.1), which is kept in a special room. Éoder hears torts here, and closed sessions of the Kraething are conducted in the main hall at the dark of the moon. A single town-guard (whose duty is rotated with the others) sleeps in the southwestern porch and keeps watch over the building at night. 5. Wic (No. “Market Green”). Booths are set up here during the warm months at the third quarter of the moon, for the monthly markets. The Faird frequently uses the place for training; their sparring matches invariably attract crowds of young spectators. By formal law, this area has been declared the center of the neutral (clan-wise) town of Dale outside of the Krythéod fyrga enclosure.

6. Slapor Éoten Tafen (No. “Sleeping Giant Inn”). The sole inn and public house in the town, run by a Féotlingas woman, her Gramuz husband, and their two children. Most business comes from outsiders, for Dale-folk typically stay with clan kinsfolk when visiting the settlement. Forwen and other important Féotlingas members stay here free of charge when in town. Cheap lodgings in a common area over the stable adjoining the main building are available for poorer folk. 7. Wain-wyrhtanhud (No. “Wainwrights’ Shop”). Because of the nature of the business, this Krythéod craftswoman, her daughter, her brother’s Estaravë son-inlaw (an assistant), his wife, and that couple’s infant son all live and work here. The proprietor’s husband is a townguard member who usually stays at the main clan hall (#29). 8. Weardhud (No. “Guardhall”; two of them). The western building houses two drihten members responsible for maintaining the watch upon the nearby gate and for collecting tolls from merchants. The northern structure houses the Norlidh (#1) guard and the guard stationed at the Fyrgalidh (#39). 9. Wainlidh (No. “Wagon Gate”; aka “Main Gate”). Monitored by two town-guard members, this is the more travelled of the two roads entering Dale. 10. Stainhud (No. “Stonemasons’ Hall”). Also known as Pepinsael, or “Pepin’s Place,” this workshop is run by the well-known personality, Pepin. He maintains close contact with the Stahnothéod quarry east of town. A large number of clan members make their home here, including Pepin’s Stahnothéod wife, his mother, two surviving sons (both assistants), a daughter-in-law, an infant granddaughter, and eight other assistants and apprentices (including one Lake-man and one Gramuz), as well as two friendly ravens. Valcrigge and other important Stahnothéod members stay here when in town. 11. Stainhud. Another mason’s yard, run by Pepin’s brother, who married into the Féotlingas clan. The couple’s only surviving daughter and two apprentices also reside here. 12. Grocer/Feed Shop. Run by two widowed Aldurlingas sisters, their aged mother, and four adolescent children. 13. Vebbahudan (No. “Weaver Halls”). Thirteen people, members of all five Dale-man clans, live in four halls here and concern themselves with all aspects of clothmaking: from harvesting flax for linen, to raising sheep, to spinning, dying and weaving cloth, and tailoring garments. A large number of sheep can invariably be found grazing in the yard, and any unrecognizable visitor will launch them into a chorus of “baahs.” Their number includes one especially belligerent ram named Dwerrowhámer (No. “Dwarfthumper”) with a peculiar dislike for Dwarves. 14. Plegûd (No. “Amphitheater”). A link to the Adan past of the Dale-folk, this wooden structure serves as theater, outdoor court, and Kraething meeting place during fair weather. Because of its semi-official status, the drihten would not take kindly to wandering scops appropriating the place for impromptu performances.

25

Dale

26

15. Airenskápargeard (No. “Farrier’s Yard”). A widower born into the Féotlingas clan, but married into the Krythéod, lives here with his sister and apprentice. After the death of his spouse from the Plague, he felt uncomfortable remaining in the Krythéod fyrga, and removed himself to Dale’s neutral area. He still maintains close ties with many Krythéod folk, including his only living son, who serves in the town-guard. 16. Beawynsael (No. “Beawyn’s Hall”). Beawyn, the aged, widowed Féotlingas seer, resides here with her two children. A couple of friendly thrushes nest beneath the eaves of her stable. She is also close friends with her neighbor (at #15). 17. Wudu-wyrhtan un Skáparasgeard (No. “Carpenter’s and Smith’s Yard”). A Féotlingas carpenter, his sister, her Dalethéod weaponsmith husband, and their two children (one apprenticed to each profession) reside here. The weaponsmith is quite skilled, having worked as a journeyman for an Estaravë master in his youth before settling down in Dale. He is also capable of working jewelry (especially gold). 18. Gristahud (No. “Bakery”). Brocking the Stahnothéod baker and Stanchela, his Féotlingas wife, live here with their coddled infant son. (Three older children died soon after the outbreak of the Plague.) Each morning, twiddel-bannocks may be purchased here (see Sections 19.5.2 and 20.3). 19. Sealterhud (No. “Salt Merchant’s Hall”). A woman of the Stahnothéod clan runs this business with her sister, her Dalethéod husband, her daughter, and her brother’s son. An extremely wealthy woman, she acts more as a clan envoy than an independent trader, and consequently funnels much of her profits back to the Stahnothéod clan hold near the salt mines. Her supplies usually arrive by ship from upriver. 20. Dalethéod Maedwe (No. “Dale-folk Farm”). Home to ten members of the Dalethéod clan, the wealthy folk of this homestead concern themselves with shipping materials to and from Esgaroth on behalf of the clan. (They own two cnearra.) The Dalethéod remain, generally, the most exclusive and xenophobic of the Dale-folk’s clans (although there are many exceptions), and the 9' timber palisade that surrounds this yard reflects this attitude. Because of the close proximity of Saidalbuirh, the Dalethéod fyrga, few clan members reside elsewhere in Dale. Rognachar, when he is not the guest of his son-inlaw the Thyn, stays here while in Dale. The clan often uses green-wing crows residing in a special aviary to relay written messages to Saidalbuirh. 21. Boederasgeard (No. “Shipwrights’ Yard”). Run jointly by a Stahnothéod man, his Krythéod wife, and her brother. One assistant and one apprentice also live here. 22. Bylt-byltageard (No. “Caskmaker’s Yard”). Operated by the Lake-man cooper Guntram with the help of two apprentices, a Lake-man and an Aldurlingas clanswoman. 23. Waerhuilan (No. “Warehouses”)/Granaries (four of them). Used by merchants from all the clans and

monitored by two drihten members who maintain an office in one of the buildings and collect tolls on incoming merchandise. The pair also sleep here—rotating duties on a regular basis with their comrades at the main Krythéod clan hall (#29). A marsh mastiff helps them patrol the area. The southernmost warehouse is primarily used to store grains (its neighbor, Guntram, is a regular cornplainer about the vermin it attracts), while the northernmost warehouse is used almost exclusively by the Stahnothéod for storing stone and salt. 24. Haithastraetan. A long, broad wooden dock with multiple mooring rings and several flights of steps leading down to the water serves as the riverfront for merchant ships. 25. Húdh-wyrhtan (No. “Cobbler/Leatherworker”). Run by a widowed Aldurlingas man and his Dalethéod son. An elderly Lake-man cousin from Buhr Thurasig also operates a tannery here. He will purchase pelts from trappers. 26. Skáparasgeard. A highly-skilled Féotlingas weaponsmith. She signs her well-known work with a runic abbreviation of “Fruiamanskápar” (No. “Woman-smith”), for weapon making is an unusual occupation for a woman. Skáparasgeard runs this shop with her husband, a Dalethéod armorer, and his skilled assistant and brother-in-law, Baric. The couple’s son is apprenticed to his mother. 27. Éowealdhud (No. “Horse Trainer’s Hall”). The home of the main Krythéod Horse trainer, his Éothraim wife, and their three children (including one Easterling foundling). 28. Steall (No. “Stable”). The main horse stable for the Krythéod fyrga. 29. Krythéodhud (No. “Krythéod Clan-hall”). Presided over by the Thyn Éomer and his Dalethéod wife Sulwyn. This tall two-story hall is also home to the five townguard members not stationed elsewhere in Dale. It also houses two clan lawgivers/scops, some twenty-one other relatives and servants, and Éomer’s two ferocious but well-trained marsh mastiffs. Glassless windows above the lintels of the doors allow free passage in and out for a noble family of thrushes, which lives in the rafters of the main chamber. Several swallows have also taken up residence. All important clan events take place here. 30. Dovecot. A large number of well-fed blue pigeons (for relaying written messages) are kept here. 31. Cuirlhud (No. “Knights’ Hall”), Éomer’s brother and sister-son—both accomplished warriors and farmers—live here with their immediate families and servants. The hall houses a total of fifteen people, although the two Húdcuirlas (No. “House-guards”) often sleep at the Krythéodhud (#29), where they would be better able to aid their Thyn in an emergency. When any of the three other Krythéod cuirlas leaves their outlying homesteads to attend to their lord in Dale for an extended period, their families sometimes accompany them and stay here. 32. Ortgeard. The private orchard of the Krythéod clan, this grove of apple, cherry, and wild persimmon trees is a popular place for clan children to play.

33. Granary. Food stores for the clan, which hosts many feasts during a typical (and not too severe) winter. 34. Laiskáparhud. Home to the local potter, her Lakefolk husband, and young daughter. 35. Wyrtwimmanshud (No. “Healer’s Hall”). Home to an herbalist/midwife, her Gramuz husband (a carpenter), and two children. 36. Stanhud. Home and workshop to a Krythéod mason who trained with Pepin. After the loss of his first Stahnothéod wife in the Plague, he remarried a fellow clan member. They have three young children (one by the previous marriage). 37. Wyrdwimmanshud (No. “Seer’s Hall”). Home to Éomer’s aunt—an aging Storrakyn adept—and her two apprentices. The mage chose to remove herself here from the more quotidian activities at the main hall (#29). 38. Maelashud (No. “Coiner’s Hall”). Home and workplace for the famous Krythéod master jewelsmith, Hilderinc Puttablanc. He resides here with his Estaravë wife, his son (an apprentice), his brother Léovric the town Maela, Léovric’s wife, Léovric’s apprentice, and his toddler daughter. 39. Fyrgalidh (No. “Clan-hold Gate”). The first of two entryways into the Krythéod fyrga. This wooden gate, pierces the 5' mound and 12' palisade wall that surrounds the clan manor. It is normally manned by a single drihten member, but that warrior is in full view of the lone guard stationed at the Norlidh (#1) (both sleep at the northern Weardhud at #8.). In contrast to the lesser fyrga gate, this one is normally open during the day, but is closed shortly after dark.

4.4 LONDAROTH-BY-LINDAL Londaroth-by-Lindal (S. “Shadowed Mist Haven by Mere’s End”) was once the the most important regional trading town in the Nan Celduin. It was the seat of Lakeman power in Rhovanion. Lying just across the pool formed at the foot of the spectacular 80' Lindal Falls (No. “Séahlinn”)—along a portage route around the waterfall—the town eventually slipped into decline because of its poor defensibility. The population numbered some two hundred souls in the years before the Great Plague. Particularly hard hit by the pestilence, scarcely a quarter of that number still reside in the town. At one time, Londaroth’s architecture reflected a mixture of Adan-style limestone buildings and (more typical) wooden Northman structures. The fusion bore witness to the town’s important trade role. The Citadel of the Maestas remains the most impressive example of this Dúnadan-influenced building style, despite its somewhat ruinous state. But no mason has resided in Londaroth for almost half a century, and the quarry several miles downriver, where stone was once mined, lay unused for decades before that. Harsh weather and age exacted quite a toll from the stout masonry structures. Their decay accelerated during the panic and strife accompanying the outbreak of the Great Plague, when the interiors and roofs

of many homes were burned. Virtually the entire community was abandoned for a time, and brigands looted and occupied the settlement for short periods during this desertion. Much of what these bandits could not steal, they razed or pulled down. The majority of the fifty-five or so Lake-man residents of Londaroth dwell in make-shift versions of stone buildings reconstructed with “spolia”—masonry scavenged from other existing structures, or in sunken-floor, wattle-and-daub huts built atop and within the ruins of previous edifices (see Section 12.7.2 for a more detailed description and layout). Few structures rise above a single story, and glass windows are virtually unheard of. Stout, drop-latch doors with drawbars and heavy window shutters are present everywhere, for a feeling of depressive suspicion has infiltrated the place. Most folk keep small vegetable gardens within the dilapidated enclosure. Many own several animals. The settlement is perpetually bathed in the Lindal’s spray. This magnificent waterfall is especially breathtaking to behold just before dusk. Then, the sun’s rays create multiple rainbows amidst the cascade’s spray. Most evenings, a fog creeps across the river and shrouds low-lying areas by the Mylenrill (No. “Mill Brook”) until the middle of the next morning. Viloric, the self-styled head of the community (see Section 14.0 and 19.1), runs the place with his team of thugs. They employ intimidation and extortion. The miller’s younger sister, the hateful Woedwyn, is the lone remaining novice from the awful Cult of the Long Night. This secret society—which embraces evil sorcery—once operated openly in the town. They recruited initiates like Woedwyn, as well as more prominent members like Froedhir of Dol Guldur. (Froedhir—like Broehir, a Maeghirrim of the Cult of the Long Night—has moved on to work more malignant treachery against the Free Peoples of Middle-earth.) 1. Portage Trail. This well-worn wain trail is used by shippers who dock at Londaroth to portage their goods around the Lindal Falls to the shores of the Long Lake (and eventually to Esgaroth). Several miles outside of town, a branch of the track forks to the northeast through Gramuz territory. A similar portage trail circumvents the falls on the opposing western side of the River Running. 2. Dorwinion Road. Follows the eastern edge of the River Running south and east. 3. Mylenasméah (No. “Mill Pond”). A man-made body of water. The southern bank is lined with horizontally stacked timbers. Green-head ducks, crakes, coots, and geese abound. 4. Mylen (No. “Mill”). A traditional timber Northron two-story mill with a horizontal waterwheel within a shallow trough of wood. Water enters the trough through either of two chutes: one operates the mill; the other bypasses the waterwheel. A granary nearby is used to store grain which has been ground but not yet returned to its owner.

27

CXe[Xifk_$ Yp$C`e[Xc

0\OHQ1R´0LOOµ 7KHVHFRQGRIWKHP\OHQZHDUG 1R´0LOOHUµ 9LORULF·VWZRJULVWPLOOVWKLVVWUXFWXUHZDV RULJLQDOO\RIWKHVDPHGHVLJQ DV LWVFRXQWHUSDUW ,W ZDV UHEXLOW LQ7$ DIWHUWKHROGEXLOGLQJEXUQHG GRZQ7KHQHZHGLILFH LVEXLOWRIVWRQH0DVRQV IURP 'DOHZHUHKLUHGIRUWKHMRE ,WHPSOR\VDYHUWLFDORYHU VKRWZDWHUZKHHO WRWXUQ LWVPLOOVWRQHVZKLFKZHUHDOVR LPSRUWHGIURP 'DOH $OGEXKU 1R ´2OG 7RZQµ 6FDWWHUHG UXEEOH DQG ZHOOZRUQ IRXQGDWLRQ UHPQDQWV GDWH WR WKH WLPH RI /RQGDURWK·VKH\GD\SULRUWRFLUFD7$ ZKHQWKH WRZQ·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´:DLQZULJKW·V
WKHLU ZHDOOL VHUYDQWV DQG VPXJJOHU WKXJV )DOOLQJ VODWH VKLQJOHVSRVHDGDQJHUWRE\VWDQGHUVRQZLQG\GD\VWUHDW DVRQHWRWKUHH6PDOO%DVKDWWDFNV 6HH6HFWLRQ IRUDPRUHGHWDLOHGGHVFULSWLRQDQGOD\RXW +~GKZLUWDVKXLO 1R ´&REEOHU·V+DOOµ $VWRQH VWUXFWXUH LQ UHODWLYHO\JRRGFRQGLWLRQZKLFK KRXVHVWKH WRZQFREEOHUKLVZLIHFKLOGDQGDQDSSUHQWLFH 5LYHU5DWV·+RXVH$ZDWWOHDQGGDXEFRWWDJHWKDW VHUYHVDVWKHKRPHIRUWZR5LYHU5DWVZKRSO\WKHWUDGH DORQJWKH5LYHU5XQQLQJDQGDUHUDUHO\KRPH DQGWKHLU ZLYHVRQHLVDQDFFRPSOLVKHGZHDYHUDQGSUHJQDQW :HDOOLKXLO1R´%RQGVHUYDQW·V+DOOµ $QHOGHUO\ ZLGRZOLYHVKHUHZLWK KHUWZRVRQV ZKRERWK ZRUNDV ODERUHUVRQWKHGRFNV 2UWJHDUG1R ´2UFKDUGµ $SSOH FUDEDSSOH DQG FKHUU\WUHHV GHVSHUDWHO\ LQQHHGRISUXQLQJVWLOO SURYLGH VHDVRQDOWUHDWV '~LDLDQ 7DIHQ 1R ´0LVW\ 9LHZ ,QQµ 5DWKHU GLODSLGDWHGEXWVWLOOIXOO\IXQFWLRQDOWKLVLQQLVUXQE\D FRXSOHWKHLU\RXQJVRQDQGWZRZHDOOLVHUYDQWV0RVWRI WKHORZPDLQWHQDQFHVOHHSLQJFORVHWVDUHLQODUJHFRPPRQ URRPVIRUWKHLQQ·VPRVWIUHTXHQWFXVWRPHUVDUHWKH5LYHU 5DWV ZKR PDQ WKH FQHDUUD WUDGLQJ VKLSV RQ WKH 5LYHU 5XQQLQJ 6HYHUDO QLFHUFKDPEHUV GR H[LVWRQ WKHQRUWK VLGHRIWKHEXLOGLQJ KRZHYHU³WKH\SURYLGHDEHDXWLIXO YLHZRIWKH/LQGDO)DOOVDFURVVWKHULYHU7KHWDYHUQKHUH WKHRQO\RQHLQ/RQGDURWKLVUDWKHUURZG\ 5LYHU5DW +RXVH :KDW ZDV RQFHWKH VWDEOH IRU D UXLQHGKDOOQRZKRXVHVD5LYHU5DWZKRLVVHOGRPKRPH DQG KLV VSRXVH ZKR VRPHWLPHV KLUHV KHUVHOIRXW DV D SRUWDJH ZDLQ GULYHU WR HDUQ H[WUD PRQH\ 6HYHUDO IHUDO KRXQGVOLYHDPRQJVWWKHIRXQGDWLRQVRIWKHPDLQEXLOGLQJ DQGDUHOLDEOHWRDWWDFNDQ\RQHEHVLGHVWKHVFUDSSURYLG LQJ FRXSOHZKROLYHKHUH $LUQVPLWKDV*HDUG1R´)DUULHU·V
present). They own nine wains and have not yet succumbed to the threats of Viloric’s thugs (although one woman has a broken arm as a consequence). 27. Weallihuil. A dockworker lives here with two hounds and one young daughter. 28. Tun-bytlas Geard (No. “Cooper’s Yard”). A single widowed cooper resides here. His two nephews work as River Rats and are rarely home during the shipping season. 29. Waerhuilan (3). Only the easternmost remains intact. Shippers using it to store goods generally hire a trustworthy local as a guard. 30. Riverfront. Still in relatively good repair, this long wooden wharf has numerous inlets for ships to dock and several ladders and flights of stairs down to the surface of the river. Parbuckle contraptions are built into the floor to allow the easy loading and unloading of boats. 31. Boderas Geard (No. “Shipwrights’ Yard”). Two ship builders live and work here. Two other River Rat family members are generally away during the warmer months. 32. Viscerashuil. One Fisherwoman, her dockworker spouse, his River Rat brother, and another River Rat son reside here. Both of the latter two are generally away manning craft upon the River Running. 33. Ferendhuwaerfan (No. “Ferry Wharf”). The landing for the ferry which carries folk back and forth across the river for 1 copper piece per person. Because the ferend (No. “Ferryman”; who lives in the small cottage alongside the dock with an itinerant River Rat son) could not afford to repair his two boats after the Plague, the place is now owned by the Dúiaian Tafen.

Cotstow sees few visitors aside from peddlers and travellers upon the Forest River. Raft-elves en route to Esgaroth stop here only to barter lumber (to fuel the potters' kilns) and stream-tin. The Elves purchase the latter from the Estaravë and Nenedain of the Nan Anduin, who gather minerals from the beds of waterways in the upper Anduin valley. Villagers exchange pots and baskets for the tin, which they use to make ceramic glaze). The buildings of the village are typical Lake-man structures: languzan or lainghudan (No. “Longhouses”) built either of grooved vertical planks fitted together and set in long wall-trenches or cruder wattle and daub plastered over a branch frame. One- or two-storied structures with roomy lofts are the norm, and the main floor of most buildings is sunk about three feet into the ground. Roofs are steep, usually hipped at their gabled ends, and made of thatched grasses. They are pierced at the summit with a louvered hole to allow smoke from interior firepits to escape. Windows are few, generally shuttered, and often without glass. Doors typically have both a droplatch mechanism and a night-time drawbar. Many people keep several animals and maintain small vegetable gardens within the enclosure. Every family in Cotstow owns at least one small boat. Because of the limited space at the dock, most are moored to stout timber piles sunk into the marshlands nearby.

1. Riverfront. A single large wooden dock (No. “céah”) on the Forest River provides a landing for Raft-elven and Northron traders. Several flights of stairs descend the 7' or so down to the water. During particularly severe spring floods, the dock may become entirely submerged under several feet of water. 4.5 COTSTOW 2. Flógardh (No. “Dike”). A broad earthen causeway, Cotstow is a small village of some seventy Lake-folk raised about 12' over the surrounding marshes, provides built on the side of a hill overlooking the southernmost convenient access to the Forest River. A corduroy log road, reaches of the Long Marshes (No. “Lang Marish”; S. Marish Clós (No. “Marsh Lane”), has been set in the top “Aelinnan”). It stands near the Forest River (No. of the dike to prevent wains from becoming mired. “Viduwell”; S. “Taurduin”), just six leagues from Esgaroth. The journey to Lake-town is a three-hour trip down the 3. Laiskápargeard (No. “Pottery Yard”). A large area Forest River. The trip back takes six to seven hours. surrounded by a 6' plank fence serves as the workshop area Because of its proximity to Esgaroth, most people obtain for the potter edfreahar, which employs nineteen of fine wares there. Thus, the community lacks many of the Cotstow’s inhabitants. Headed by Fennric (see Sections 14.0 and 19.1), this atelier produces more ceramic than any luxuries of the platform-town. other workshop in northern Wilderland. Its products, both While most folk here are self-sufficient, part-time the cruder earthenware crockery thrown on a slow wheel, farmers, life in Cotstow revolves around two craft indusand the finer fast wheel-thrown, reduction-fired wares tries: pottery manufacturing and basketmaking. The nearby coated with iridescent green tin or lead glazes, can be found wetlands provide the clay and reeds necessary for these as far afield as the Sea of Rhûn and the Anduin vales. trades; and, unlike the wooden platform of Lake-town, 4. Fields. Several small plots are farmed here. Because of the site is a safe place for the ground kilns needed to fire their hillside location, they are laboriously ploughed by ceramics. Cotstow accounts for virtually all of the “local” hand with a step-plough (like the vegetable gardens inside pottery flowing through Esgaroth. Aside from trade, contact between the neighboring the village enclosure). Larger fields on flatter land, turned towns is strong. The men of Cotstow are permitted to by an auroch-pulled coulter-plough, can be found several vote as part of Esgaroth’s Atanathrain, but must also serve miles to the east, along Séah Straetan (#5). in the larger settlement’s Faird. Of course, many Cotstow dwellers move to Lake-town anyway, for their home town offers few opportunities for adventure or pecuniary advancement.

31

Cotstow

32

Buhr Chep

5. Road. Sometimes called Séah Straetan (No. “Lake Street”), this is nothing more than a dirt track composed of two wainwheel ruts. On the eastern side of the hill, the way forks into a northeast branch heading towards Dale and a southeast branch heading to Esgaroth. 6. Lidhas (2). Two wooden gates, closed each day shortly after sunset, are the only entrances through the 8' high log palisade surrounding the settlement. A low earthen ramp around the interior of the wall allows defenders to look out over the top of the palisade. 7. Taynel-wirtashuil (No. “Basketmaker’s Hall”). Flana, one of the village leaders and the Kryn of the Taynel-wirtas edfreahar, lives here with her husband, two daughters, mother, aunt, two orphaned adolescent boys (whose parents died in the Plague), an assistant, and two apprentices. She operates a workshop here which makes not only baskets, but waterproof floor mats and wicker seats. Six of Flana’s cohabitants perform tasks related to the business, and a number of other community inhabitants make baskets in their own homes which the Kryn then sells for them. 8. Húdh-wirtahuil (No. “Cobbler’s Hall”). The village cobbler, a Dale-man of the Féotlingas clan, operates a workshop here. His wife (a Taynel-wirtas member) also resides here, as does her brother and his wife, her sister, and that woman’s spouse (both Laiskápar members), three children, and an apprentice. 9. General Store. Run by a widow and her youngest son. Her other two children are members of the Laiskápar edfreahar. 10. Trapper’s Hall. Inhabited by a Woodman trapper (who is often away), his spouse, mother (a Taynel-wirtas member), and an infant child. 11. Well. For the use of the entire community, this 50' deep pit is lined with wood staves. Often community members gather here to gossip, particularly in the early evening, when a beer keg and several benches stored at the General Store (#9) are brought out. 12. Fennric’s Huil. Home to the Kryn of the Laiskápar edfreahar and his large extended family of fifteen people (including one Taynel-wirtas member and seven others who work at the Laiskáparhuil). 13. Airn-skáparashuil (No. “Farrier/Blacksmith’s Hall”). A man and his apprentice son operate the business when they are not farming. The master smith’s mother (a Taynel-wirtas member), wife, and two Laiskápar member brothers also reside here. 14. Folcsteall (No. “Town Stable”). An old-style Northron building and an animal paddock shared by the community. 15. Shepherds’ Halls. Thus dubbed because of the flock of sheep and goats herded by one member of this family. Also here: four hounds, the shepherd’s two older siblings (both Laiskápar members), and their spouses. All seven young children of the two couples perished in the Plague, and the door of the main cottage remains painted white (a symbol of Northron mourning).

16. Hue’s Cottage. A thatched wattle-and-daub structure housing only the orphan Huc (see Section 14.0 and 19.1), his marsh mastiff, three ducks, one piglet, two chickens, and a tame heron—which is flightless due to an injury (Huc found it in the marsh and nursed it back to health).

4.6 BUHR CHEP The small Lake-man town of Buhr Chep (No. “Market Stronghold”) serves as home to some one hundred and twenty people. It stands atop a glacial ridge overlooking the valley of the River Running (No. “Rinnelflóth”; S. “Celduin”), along a broad stretch of that waterway. The settlement is about seventy-five miles downriver of Londaroth-by-Lindal (No. “Shadowed Mist Haven by Mere’s End”), but just fourteen miles southeast of the Old Forest Road Ford (No. “Viduwaed”; S. “Iach Celduin”) and its nearby deserted post-Plague settlement ruins. Another lesser-used ford, the Garwaed (No. “Spear[height] Ford”), is situated just five miles downriver from Buhr Chep. It provides a crossing at an even wider part of the estuary. Only good swimmers attempt the crossing there, however, for the height of the ford averages five to six feet in depth. Because of its location along the well-travelled River Running, a large proportion of Buhr Chep’s inhabitants ply crafts other than farming and fishing. Nevertheless, the crops and animals of regional Frithas (No. “Protectors”) and the daily catch of the town’s Visceras (No. “Fisherfolk”) still provide the main attractions at the settlement’s monthly markets. Other items available at market time—such as cloth, candles, metalwork, salt, baskets, pottery, fruit, and Elven wine—arrive on ships from Esgaroth. Olive oil, wine, dyes, shellfish, and assorted luxury goods flow upriver from Dorwinion. The Éothraim of the Anthars (No. “Kinsfolk”) tribe, who frequent pastures southwest of the river, also swim the Garwaed. They come with their horse herds each month to trade in Buhr Chep. The buildings of the town are typical Lake-folk structures: languzan or lainghudan like those described above (Section 4.5). Craftsfolk live in the back rooms or on the second floor of their workshops. Most people keep both a small vegetable/herb garden in their yard and several animals in a steall (No. “Stable”) behind their dwelling. Some have bounded their family enclosures with either a withy fence or a hedge. Overall, the townsfolk are a tightly-knit group, for most are (at least distantly) related. Buhr Chep is located upon the southernmost ridge among a series of shale, sandstone, and limestone fells. These ridges overlie the predominantly limestone steppes south of the Running River and form the northern edge of the river valley. The landscape is consequently fairly rugged north and east of the settlement. Here, the meadowlands alive with grasses, shrubs, and small copses of trees are interspersed with more dense forests of predominant hardwoods (oak, elm, hickory, and ash).

34

1. Riverfront. Six docks (No. “Céahas”) fronting onto the River Running provide a landing for merchant cnearra (No. “River Boats”) and Visceras thirrucan (No. “Small Ships”). 2. Tun-bytlas Geard (No. “Coopers’/Wainwrights’ Yard”). Run by two sibling craftsfolk, Oswidu (No. “Forest Hero”) and Aesla (No. “Foreigner”). Oswidu slumbers here, along with an assistant, an apprentice, and a guard hound; while his sister Aesla shares a home with her husband and another brother (#12). 3. Waerhuilan (No. “Warehouses”; 3). Space here is rented by a cuirl (No. “Elite Guard”) and his drihten (No. “Standing Town Guard”) assistant in return for a small fee. During the day, the pair operate from a corner office in the largest warehouse, and are also responsible for assessing and collecting tolls from traders docking at the riverfront (usually paid “in kind”). At dusk, the two return to town, but two guard hounds patrol the warehouses, and a night watch is dispatched to check the security of the place twice during the course of the evening. 4. Boederas Geard (No. “Shipwright’s Yard”). A hub of activity during the day, this place is deserted at night except for a single guard hound. The craftsfolk here, directed by Andar (No. “Relative”), are responsible mostly for making boats that are thurruc-sized or smaller and for repairing visiting vessels. 5. Ford. The Dorwinion Road (No. “Rinnelweg”; S. “Men Dorwinion”) crosses the swift Chepstrem here at a shallow stone ford averaging no more than 1' deep. A number of stout and hale willows provide shade along the tributary and the nearby River Running. 6. Pasture. The livestock of the townsfolk are often pastured on the hillside in this area, tended by several of the local children. 7. Lidh (No. “Gate”). A dirt track approaches the sole entrance into the town here, a broad wooden gate manned by two drihten. The gate is closed and barred shortly after dusk. Elsewhere, an earthen enceinte nearly 20' high surrounds most of the settlement. A 7' wooden palisade, pierced with narrow arrow loops, surmounts that mound. 8. Weardhuil (No. “Guardhall”). A plank-built building which forms part of the palisade encircling the town, the weardhuil serves as barracks for one cuirl and three townguard members (who rotate with those stationed at the Maestahuil—#22). A shuttered window allows the occupants to monitor the approach to the settlement. 9. Laiskáparhuil (No. “Potter’s Shop”). The local potter, Becca (No. “Pickaxe”), makes wheel-thrown crockery which she coats with an iridescent green tin glaze and fires in a ground kiln fueled with peat. She lives in the back room of this one-story structure with one assistant and a wealli (No. “Bondservant”) who helps her care for her three young children. Her husband is a “River Rat” sailor who plys the trade routes up and down the Celduin. He is rarely home during the trading season. 10. Wargshafod Tafen (No. “Wolfshead Inn”). The

only inn and tavern in town is run by Awenahar (No. “Firm Husband”), Fredegild (No. “Golden[-haired] Tranquility”), their adolescent daughter, Moll (No. “Wench; Serving Girl”), and two hired helpers. An admirable cook, Fredegild also brews a potent ale with the grains of local Gramuz. Besides Moll, the couple have two sons in the town drihten who reside elsewhere. 11. Paddock. Used as a communal pen for livestock belonging to the townsfolk. On market days, this area is used as a corral for the steeds of visitors, merchants and Éothraim horse traders. 12. Arewersael (No. “Arrowmaker’s”). The residence of Anlaf (No. “Only Survivor”), his wife (who works as a weaver at the Vebba, #17), his sister Aesla (who works at the cobblery, #2 above), and his mother-in-law. Anlaf was captured and blinded in his youth by Sagath raiders and forced to give up his woodworking trade. Now he makes and sells bows and arrows to occupy his time. He is a crack shot with a composite bow despite his sight impairment. Anlaf’s only surviving son (three others perished in the Plague) and his brother-in-law also live here, but they are River Rat sailors who are seldom home except during the winter. 13. Húdh-wirtashuil (No. “Leatherworker’s, Cobbler’s Shop”). Two leatherworkers operate this shop. Siward (No. “Journey Guide”) is unmarried and does most of the tanning and saddlery. His Estaravë brother-in-law Thurcytel (No. “Tulkas’ Spawn”) is a stellar cobbler and can make quality leather armor as well. Ellenlic (No. “Daring”) and Thurcytel have a son in the town drihten, who stays elsewhere. Two young apprentices and Siward’s and Ellenlic’s aged father also live here. 14. Visknakynashuil (No. “Cult of the Fish Priest’s Hall”). Léofwin (No. “Friend for Life”) administers to the spiritual needs of the community, and lives here with two wealli. 15. Wyrdwimmansael (No. “Seers’ Dwelling”). Ricole (No. “Soothing Leader”) lives here with her only surviving daughter (who is a weaver and works at the Vebba, #17). She is a midwife skilled in divining the future and healing. She will also gather and sell herbs to those who request it and, as a devout Alanakyn (No. “Cult of the Growing”) adherent, can provide spiritual guidance to those in need. Her husband and the spouse of her daughter are both River Rats who spend most of the year travelling up and down the River Running. 16. Granary. Used to store grain for the community during the winter. Home to a number of healthy, well-fed vermin. 17. Vebba. (No. “Weaver”). The home of the most prominent merchant in Buhr Chep (aside from the Maesta), Bealdwin (No. “Bold Friend”), and his wife Aethelflaed (No. “Noble Sewer”). Bealdwin spends most of his time captaining a cnearra on the River Running. His busy wife tends to her son and two aging parents with the help of two wealli. She also weaves cloth with the help of her

ZLGRZHGVLVWHUZKROLYHVKHUHDOVR DQGWZRORFDOZRPHQ VHHDQGDERYH PRVWRIZKLFKLVWUDGHGXSULYHU E\KHUKXVEDQG$HWKHOIODHGDQG %HDOGZLQDOVRKDYHDQ ROGHUVRQZKRLVRQHRIWKHWRZQ·VWZRFXLUODV *ULVWUD1R´%DNHUµ :XOIQRWK1R´%ROG:ROIµ UXQVDIHHGVWRUHDQGWUDGHU·VVKRSZKLFKVHOOVIRRGVWXIIV SXUFKDVHGIURPERWKORFDOIDUPHUVDQGORQJGLVWDQFHVKLS SHUV +LOGD1R ´6KLHOGPDLGµ :XOIQRWK·V ZLIH LV D EDNHURIDGPLUDEOHFRPSHWHQFHZKRGRHVDQHVSHFLDOO\EULVN EXVLQHVVDURXQGPDUNHWWLPH+HUGDXJKWHUIURPDSUHYLRXV PDUULDJHVHUYHVDVKHUDVVLVWDQW7KHFRXSOHDOVRKDYHRQH \RXQJHUVRQZKRLVORRNHGDIWHUE\:XOIQRWK·VPRWKHU 6KDPEHOKXLO1R´%XWFKHU·V6KRSµ :LGLPHU1R ´:RRG+RUVHµ D)ULWKDV*UDPX]PDQDQGKLVZLIH 1DQQD 1R ´&KDVWHµ UXQ WKLV EXWFKHU·V VKRS DQG IXUULHU·VEXVLQHVV:LGLPHUEX\VOLYHVWRFNIURPUHJLRQDO *UDPX]NLQVIRONDQGNHHSVPRVWRILWDOLYHXQWLOKHQHHGV WRILOODQRUGHU7KHFRXSOHGRWKHLUEHVWEXVLQHVVDURXQG PDUNHWWLPH2QHRIWKHLUGDXJKWHUVVWLOOOLYHVZLWKWKHP $QRWKHUGDXJKWHULVPDUULHGWRD9LVFHUDVPHPEHUDQG OLYHVHOVHZKHUH$VRQZKRHDUQVDOLYLQJDVDWUDSSHULV UDUHO\LQWRZQ1DQQDKDVDEURWKHUZKRLVDFDUHHUWRZQ JXDUGPHPEHUDQGOLYHVHOVHZKHUH 6NiSDUDVKXLO1R´6PLWKV·+DOOµ 7KHVL]HRIWKLV WZRVWRU\EXLOGLQJUHIOHFWVWKHVWDWXVDFFRUGHGWRVPLWKVLQ 1RUWKURQ FXOWXUH 7KUHH EURWKHUV RSHUDWH WKH EXVLQHVV 2UGJDU1R´6SHDU3RLQWµ WKHHOGHVWLVDQLURQVPLWK ZKRPDNHVDERYHDYHUDJHZHDSRQVDQGDUPRULQDGGLWLRQ WRPRUHPXQGDQHLWHPV7KXQRU1R´7KXQGHUµ WKH \RXQJHVWLVSULPDULO\DIDUULHUDQG&ZLFKHOP1R´/LYLQJ 3URWHFWRUµ ZKRVSHQWPXFKRIKLV\RXWKDGYHQWXULQJLV DVNLOOHGDQGKLJKO\UHVSHFWHGMHZHOVPLWKZKRZRUNVPRVWO\ ZLWKEURQ]HDQGVLOYHU$IRXUWKEURWKHU7KLQJIULWK1R ´3HDFH7UHDW\µ ZKRWUDYHOOHGZLWK&ZLFKHOPDVD\RXQJ PDQDQGLVDOVRDEDFKHORULVRQHRIWKHWZRFXLUODVRI%XKU &KHS DQG OLYHV HOVHZKHUH 7KH IDPLO\ VXIIHUHG KHDYLO\ GXULQJWKH3ODJXHERWKSDUHQWVDQDXQW2UGJDU·VZLIHDQG GDXJKWHUDQG7KXQRU·VZLIHDQGVRQDOOSHULVKHG$QRWKHU RI7KXQRU·VVRQVZDVFDSWXUHGE\(DVWHUOLQJVQHDUO\WHQ \HDUVDJRDQGLVSUHVXPHGGHDG$JQHV1R´'LVWUHVVµ WKH ODVW GDXJKWHU RI2UGJDU LV EUHDWKWDNLQJO\EHDXWLIXO VLQFHVKHLVWKHRQO\ZRPDQLQWKHKRXVHKROGDOORIKHUJUXII NLQVPHQGRWHXSRQKHU7ZRDSSUHQWLFHVDOVRUHVLGHKHUH RQHLVWKHVRQRIWKH:HQGULKW1R´*XDUG/RUGµ :LF1R´0DUNHWSODFHµ $QRSHQDUHDZKHUHWKH )DLUG1R´/HY\µ RIVRPHILIWHHQWRWZHQW\ILYHDEOH ERGLHGPHQDUHGULOOHGHDFKPRQWKDQGZKHUHWKHPDUNHW LVKHOGDWWKHWKLUGTXDUWHURIHDFKPRRQ 0DHVWDKXLO 1R ´0DVWHU·V +DOOµ $ KLJKORIWHG EXLOGLQJZKLFKVHUYHVDVWKHWRZQKDOOWKHSULPDU\EDUUDFNV IRURQHFXLUODQGILYHGULKWHQ DQGWKHKRPHWRWKHIDPLOLHV RI ERWK *DHGHOLQJ 1R ´&RPSDQLRQ .LQVPDQµ WKH 0DHVWDDQG%DQDJDU1R´'HDGO\6SHDU WKH:HQGULKW *DHGHOLQJ·VZLIHORRNVDIWHUWKHLURQO\VXUYLYLQJGDXJKWHU DQG%DQDJDU·V\RXQJHUGDXJKWHUKHLVDZLGRZHU ZLWKWKH KHOSRIWZRZHDOOL:LKWJLOV1R´0DQ+RVWDJHµ WKH VFRSDQGODZJLYHUIRU%XKU&KHSDOVRUHVLGHVKHUH

:LQGP\OHQDV 1R ´:LQGPLOOVµ *RGHPDU 1R´9DOXDEOH6WHHG3UHFLRXV/HDGHUµ DQGKLVEURWKHU LQODZ+DUGUHG1R´6WXEERUQ&RXQFLOµ VHUYHDV%XKU &KHS·VWZRPLOOHUV1R´0\OHQZHDUGµ :LWKWKHKHOS RI+DUGUHG·VZLIHDQGWZR\RXQJFKLOGUHQWKH\RSHUDWH WKHWZRZLQGPLOOVRQWKHQRUWKVORSHRIWKHKLOO7KHPLOO IDQVDUHDGMXVWDEOH7KH\PD\EHWXUQHGWRFDWFKHLWKHUWKH ZLQGVZKLFKEORZVWHDGLO\VRXWKDFURVVWKHRDNVDYDQQDK RUWKHPRUHHUUDWLFJXVWVZKLFKZKLSGRZQWKHULYHUYDOOH\ 2QHPLOO LVXVHG WRJULQGJUDLQWKHVHFRQGRSHUDWHV D SXPSIRUDQXQGHUJURXQGZHOO,WFDQDOVREHULJJHGWRIXOO FORWKZKHQ$HWKHOIODHGUHTXLUHVLW

0RQWKV

&/,0$7(&+$57Y 1DQ$QQHQ *UH\0WQ 1RUWK 8SSHU1DQ 1RUWKHUQ 5KRYDQLRQ )RRWKLOOV ,URQ+LOOV &HOGXLQ 0LUNZRRG 3ODLQV

*pROD,,LQWHUFDOHQGDU\GD\1HZ
,QGLFDWHVDFKDQFHRIDWKXQGHUVWRUPLISUHFLSLWDWLRQRFFXUV ,QGLFDWHVDFKDQFHRIKDLOLISUHFLSLWDWLRQRFFXUVZLWKD WKXQGHUVWRUP

7+(1257+521&$/(1'$5 $QRWKHURQHGD\VROVWLFHFHOHEUDWLRQWKH/LWKH1R 7KH 1RUWKURQV RI:LOGHUODQG /DNHIRON LQFOXGHG XVHDGLIIHUHQWFDOHQGDUWKDQWKHLU*RQGRULDQQHLJKERUV ´&DOPµ SUHFHGHV6XPPHUDQG0HGH$VVRFLDWHGZLWK WR WKH VRXWK %H WKH\ 'DOHPDQ VRUFHUHUV FRQGXFWLQJ WKHZDUP6RXWK/LWKHLVDJORULILHGFRPPXQLW\UHSRVH UHOLJLRXVULWXDOVDWRS(UHERURUPRXQWHGeRWKUDLPZDU ,WLVOHQJWKHQHGHYHU\IRXU\HDUVWRLQFOXGHDVHFRQGGD\ ULRUV VHHNLQJQDYLJDWLRQDODLGDVWKH\ZDQGHUWKHEURDG 2IRUOLWKH1R ´2YHUFDOPµ SODLQRI'RU5K~QHQWKLVFROOHFWLRQRISHRSOHVVKDUHVD $XWXPQDQG WKHPDWKRI:LQWULQJFRPPHQFHZLWK FRPPRQ DQFHVWU\ RULHQWHG WRZDUG WKH KHDYHQV 7KH\ WKHDXWXPQDOHTXLQR[ZKLFKLVNQRZQDV5HSLQJ1R ORRNWRWKHVWDUVWKHVXQDQGWKHPRRQIRUJXLGDQFH,W ´+DUYHVWLQJµ 7KLVGDWHLVFRQQHFWHGLQOHJHQGZLWKWKH LVQRWVXUSULVLQJWKHQWKDWWKH1RUWKURQVRODU\HDUSD\V VXQ·VUHGIDGLQJLQWKH:HVW SDUWLFXODU KHHG WR WKH PRYHPHQWV RI WKHVH KHDYHQO\ $JDLQ DV LQ *RQGRU WKH IRONRI:LOGHUODQG XVH D ERGLHVDQGHVSHFLDOO\WKHVXQ VHYHQGD\ZHHNFRUUHVSRQGLQJWRWKHSKDVHVRIWKHPRRQ ,WLVWKHVXQWKDWGHILQHVWKHVHDVRQVWKDWVRVWURQJO\ )RUDGDQLQ :HVWURQ 6LQGDULQ GLFWDWH WKH IDWH RU ´Z\UGµ RI DOO 1RUWKPHQ 6RODU O6WRUUDQGHJ ´6WDUVGD\µRU6DWXUGD\ 2UJLOLRQ VROVWLFHVDQGHTXLQR[HVDUHERWKVDFUHGGD\VDQGGD\VRI 6RQQHQGHJ ´6XQVGD\µRU6XQGD\ 2UDQRU FHOHEUDWLRQ(DFKEHFNRQVWRDSDUWLFXODUVHDVRQDQGHDFK 0RQHQGHJ ´0RRQVGD\µ RU0RQGD\ 2ULWKLO LVOLQNHGLQP\WKWRDSDUWLFXODUFRPSDVVGLUHFWLRQ-XVW 7UpRZHVGHJ ´7UHHVGD\µRU7XHVGD\ 2UJDODGKDG DV WKH ILUPDPHQWWXUQV LQ D QHYHU HQGLQJ FLUFOH DERYH +pRIRQVGHJ ´+HDYHQVGD\µRU:HGQHVGD\ 2UPHQHO 0LGGOHHDUWKVRWRRGRWKHVHDVRQVIDGHDQGUHDZDNHQLQ 6pDKVGHJ ´/DNHVGD\µRU7KXUVGD\ 2UDHDURQ SHUSHWXLW\7KLVF\FOLFDOFRQFHSWLRQRIH[LVWHQFHLVIXQ +HDKHVGHJ ´+LJKGD\µRU)ULGD\ 2UEHODLQ GDPHQWDO WR DOO1RUWKURQFXOWXUHVDQGWKHLUQRWLRQRI ,WEHJLQVZLWK6WRUUDQGHJDGD\HVSHFLDOO\UHYHUHGE\ Z\UG /LNHWKH'~QHGDLQLQ6WDLQLQJWKDQG1R´*RQGRUµ WKH 'DOHIRON·V 6WRUUDN\Q DGKHUHQWV 6RQQHQGHJ 1RUWKPHQEHJLQWKHLUFDOHQGDU\HDURQWKHZLQWHUVRO 0RQHQGHJ 7UpRZHVGHJ DQG +pRIRQVGHJ IROORZ VWLFHWKHVHFRQGGD\RI*pROD1R´<XOHµ 7KHUHPDLQ 7UpRZHVGHJLV HVSHFLDOO\ LPSRUWDQWWR $ODQDN\Q·V IRO GHU RIWKH \HDU LV GLYLGHG XS LQWR WZHOYH WKLUW\GD\ ORZHUVDV ZHOODVWKH(DVW%LJKWHUV +pRIRQVGHJKROGV PRQWKVRU´PDWKVµHDFKPRUHRUOHVVFRUUHVSRQGLQJWR VSHFLDO VLJQLILFDQFH IRU 8HUGDN\Q 1R ´&XOW RI WKH (DUWKµ GHYRWHHV SDUWLFXODUO\ DPRQJ WKH SODLQVOLYLQJ D*RQGRULDQHTXLYDOHQW *UDPX]DQGeRWKUDLP )RUDGDQLQ :HVWURQ 6LQGDULQ 7KH VL[WK GD\ RIWKH ZHHN FDOOHG 0HUHVGHJ 1R )UpRULQJ ´)UHH]LQJ &ROGµ 1DUZDLQ ´:DWHUVGD\µ E\PRVW1RUWKPHQLVNQRZQDV0DKUVGHJ ´0LUH 0RQWKµ 1LQXL 6ROPDWK 1R ´+RUVHVGD\µ E\ WKH eRWKUDLP DQG 'DOHIRON 5HWKLQJ ´6DYDJLQJµ *ZDHURQ /DNHWRZQHUVNQRZLWDV6pDKVGHJ1R´/DNHVGD\µ ,W &KLWKLQJ ´6SURXWLQJµ *ZLULWK LV D GD\ RIVSHFLDO UHYHUHQFH IRU WKH 1HQHGDLQ LQ WKH ´0D\µ /RWKURQ 7KULPLOFH $QGXLQYDOOH\WKHeRWKUDLPDQGWKHLU$LOJUDN\Q1R 1yUXL )RUOLWKH -XQHµ ´&XOWRIWKH6WDJµ DVZHOODVWKH9LVNQDN\Q·VGLVFLSOHV 0HGH ´0LGGOHµ &HUYHWK DPRQJWKH/DNHIRON :HWKH ´0LOGµRU´*HQWOHµ ÓUXL 7KH ZHHN HQGV ZLWK +HDKHVGHJ 1R ´+LJKGD\µ ´6DFUHG 0RQWKµ +DOLPDWK ,YDQQHWK )ULGD\µ DGD\RQ ZKLFK PDQ\1RUWKURQV ZRUN RQO\ :LQWULQJ ´2FWREHUµRU´:LQWHUFRPLQJµ 1DUEHOHWK XQWLOQRRQ %ORRWLQJ *pRODPDWK

´6DFULILFLQJµ ´<XOH0RQWKµ

+LWKXL *LULWKURQ

7+(:22'(/)&$/(1'$5 7KH )LUVWERUQ QHLJKERUV RI WKH /DNHIRON IROORZ D 7KH 1RUWKURQ \HDU SURFHHGV WKURXJK IRXU VHDVRQV VRPHZKDWGLIIHUHQWFDOHQGDU%DVHGXSRQDVL[GD\ZHHNLW HDFKRIZKLFKLVDVVRFLDWHGZLWKDFDUGLQDOGLUHFWLRQ,Q NHHSLQJ ZLWK WKHLU FLUFXODU WKLQNLQJ 1RUWKPHQ EHJLQ LVGLYLGHGLQWRVL[VHDVRQVRIYDU\LQJOHQJWKV7KH:RRG DQGHQG WKHLU\HDU DW WKH ZLQWHUVROVWLFH DPLGVWFKLOO\ HOYHQQHZ\HDUFRPPHQFHVDURXQGWKHYHUQDOHTXLQR[ZLWK QRUWKHUQZLQGV)DFLQJQRUWKZDUGWKH\VDOXWHWKHSDVV WKHKROLGD\
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·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´5DLQERZVµ DUHUHPDUNDEO\IUHTXHQW$V EHWZHHQWKHUXJJHGHDVWHUQVFDUSRIWKH/RQJ/DNHYDOH PXFKDVWKH\GUHDGHOHFWULFDOVWRUPVDQGWKHILUHVWKH\ DQG WKH ZHVWHUQ HGJH RI WKH 1DQ &DUQHQ WROHUDWHV VRPHWLPHVFDXVHWKH/DNHIRONFRQVLGHUUHQERJDVVDFUHG ZHDWKHUSDWWHUQVTXLWHVLPLODUWRWKHUROOLQJSODLQVRIWKH DQGJRRGRPHQVZKHQXQFRPPRQO\REYLRXVRUGRXEOH e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·VWHQDFLW\DIWHUVXQULVHDQGWKHGHSWKV RIWKH ZDWHU LV UHPDUNDEO\UHJXODU IRUJHQHUDWLRQV WKH )LVKHUIRON KDYHXVHG PRUQLQJ REVHUYDWLRQVRIWKHIRJ·V OLPLWVWRORFDWHVKDOORZVZKLFKPLJKW\LHOGPXVVHOV 'XULQJWKHZLQWHURQH PLJKWH[SHFWWKHGHHS/RQJ /DNHWR PRGHUDWH WKH FKLOO RIWKH QRUWKHUQFOLPH EXW ZKLOHLWLVWUXHWKDWWKHODNHQHYHUIUHH]HVRUGURSVEHORZ DERXW) ILHUFHQRUWKHUQZLQGVZKLFKVKULHNDFURVV WKHODQGVEHWZHHQWKHZHVWHUQ*UH\0RXQWDLQVDQGWKH ,URQ+LOOVZKLSIUHH]LQJDLUWKURXJKWKHQDUURZXSSHU 1DQ&HOGXLQDQG1DQ$QQHQDWYHORFLWLHVXSWRRU PSK PDNLQJZLQWHUVXSRQWKH/RQJ/DNHELWWHUO\ FROG 7KHGURS LQWHPSHUDWXUH FRPHVVZLIWO\DIWHU WKH

)/25$$1')$81$ :,/')/25$

NXkZ_dXe

7KHURFN\SRVWJODFLDOWRSRJUDSK\RIWKH1DQ$QQHQ DQG1DQ&HOGXLQLVDOLYHZLWKSODQWOLIH$ORQJWKHHDVWHUQ VKRUHOLQHRIWKH/RQJ/DNHWKHKLJKVODWHFOLIIVDQGUDYLQHV KDUERUUKRGRGHQGURQPRXQWDLQODXUHODQGVKRUWJUDVVHV DV ZHOO DV HOP DQG DVK WUHHV %H\RQG WKH HDVWHUQ YDOOH\ VFDUS D SODWHDX RIUXJJHG WHUUDLQ VWUHWFKHV WR WKH ,URQ +LOOV DQG WKH5HGZDWHU5LYHUYDOOH\ LW LV D ZLQGVZHSW VDYDQQDKPDUNHGE\FRSVHVRIWDOORDNHOPKLFNRU\DQG DVK:KLOHVKUXEVJUDVVHVZLOGIORZHUVDQGKHUEVVSUHDG DFURVVWKHRSHQWHUUDLQWKHZRRGHGDUHDVDUHUHODWLYHO\IUHH RIXQGHUJURZWK 7KH ZHVWHUQ VKRUH RIWKH /RQJ /DNHRIIHUV ERWK WKH EHQHILWV DQGGUDZEDFNVRIDZHWWHUHQYLURQPHQW :KLOH UHHGVFDWWDLOVDQGRWKHUPDUVKODQGSODQWVJURZWKURXJK RXWWKH VKDOORZV WKH PRUHJHQWOHZHVWHUQ VORSHVRIWKH ODNHYDOOH\SURYLGHIHUWLOHODQGIRU1RUWKURQDJULFXOWXUH )LHOGV DOWHUQDWH ZLWK OLJKWO\ IRUHVWHG UHJLRQV WKDW KDYH IDLUO\ WKLFN XQGHUJURZWK DQG ZLWK PHDGRZODQGV RIWDOO JUDVVHVDQGVKUXEVZKLFKH[WHQGEH\RQGWKHZHVWHUQ1DQ $QQHQDQGXSSHU1DQ&HOGXLQWRWKHHDYHVRI0LUNZRRG ,QWKHYDOOH\DQGHVSHFLDOO\LQWKH/DQJ0DULVKZLOORZ HOPDQGRDNSUHGRPLQDWHZKHUHWKHLULQWHUWZLQHGURRWV FUHDWH VPDOO UHODWLYHO\ ILUP ´LVODQGVµ DPLGVW VWDJQDQW SRROVDQGPXGG\FOXPSVRIPDUVKJUDVVHV 1HDUHU WR 0LUNZRRG RDN PDSOH DQG EHHFK WUHHV EHFRPH PRUHFRPPRQWKHHDVWHUQ UHDFKHVRIWKHJUHDW IRUHVW IHDWXUHVXFK WUHHVRIDVWRQLVKLQJDJHKHLJKW DQG JLUWK$OWKRXJKFOHDULQJVDUHFRPPRQO\ULQJHGZLWKKHDY\ VKUXEV DQGEUDFNHQXQGHUJURZWKWKHZRRGODQGVRIWKH :RRGHOYHQUHDOPQRUWKRIWKH)RUHVW5LYHUVSRUWOLWWOH YHJHWDWLRQEHQHDWKWKHPXOWLSOHWUHHFDQRSLHVDVLGHIURP

KHUEVZLOGIORZHUVPRVVHVDQGIXQJLQHDUWKHIRUHVWIORRU 7KHWUXQNVRIWKHWUHHVJURZVRWKLFNDQGFORVHWRJHWKHU LQPDQ\SODFHVKRZHYHUWKDWPRYHPHQWWKURXJK0LUN ZRRGLVVWLOOH[WUDRUGLQDULO\GLIILFXOWIRUWKRVHQRWIDPLOLDU ZLWKVXFKWUDYHO6RXWKRIWKH)RUHVW5LYHUWKLVGLIILFXOW\ LVRIWHQFRPSRXQGHGE\FKRNLQJXQGHUJURZWKRIEUDPEOHV DQGYLQHV7KHIROORZLQJWZRSODQWVDUHXQLTXHWR0LUN ZRRGLQWKDWIRUHVW·VUHDFKHVQHDU(VJDURWK

3(/('+(/ 2QFHWKLVXQREWUXVLYHWDQWRDGVWRROJUHZWKURXJKRXW *UHHQZRRGWKH*UHDW:LWKWKHULVHRIWKHVKDGRZRI'RO *XOGXUKRZHYHU LWKDVVXFFXPEHGWRPRUHSHUQLFLRXV XQGHUJURZWKH[FHSWLQUDUHDUHDV LQWKHVRXWKHUQIRUHVW DQGLQWKHVKULQNLQJ:RRGHOYHQUHDOPLQWKHQRUWK,W JURZVLQFLUFXODUFOXVWHUVXSWRILYHRUVL[IHHWLQGLDPHWHU DQGLVVDLGWRVSULQJXSZKHUH:RRGHOYHVKDYHGDQFHG KHQFHLWV QDPH ZKLFK PHDQV ´(OIULQJVµ 7KUDQGXLO·V IRONFRQVXPHWKHPXVKURRPDWFHOHEUDWLRQVDQGIHVWLYDOV EHFDXVHRIWKHFKHHUIXOQHVVLWLQVWLOOVDQGWKHOXFNLWLVVDLG WREULQJVHH6HFWLRQ 5,*$$1$ 5LJDDQD6´3RLVRQ,Y\µ LVDQDVW\WULIROLDWHYLQHWKDW KDVIORXULVKHGZLWKWKHJURZLQJVKDGRZSHUYDGLQJ0LUN ZRRG,WWKULYHVERWKRQWKHIRUHVWIORRUDQGFOLQJLQJWR WUHHWUXQNVDQGLWVOHDYHVDUHRIWHQYDULHJDWHGZLWKDEULJKW FULPVRQWKDWVKRXOGVHUYHDVDZDUQLQJWRWUDYHOOHUV³WKH SODQWVHFUHWHVDQR[LRXVVDSWKDWFDXVHVDQLWFK\UDVKIURP HYHQWKHVOLJKWHVWFRQWDFWVHH6HFWLRQ

+(5%$/,60 $QDVVRUWPHQWRIPLQRUKHUEVDUHJURZQE\WKH/DNH IRONDQGWKHPRUHVNLOOHGKHDOHUVRIWKH'DOHIRONWKH\DUH XVHGIRUWKHIODYRULQJRIYLFWXDOVRUIRUKHDOLQJSXUSRVHV 0RVW KHUEV WHQG WR EH GLIILFXOW WR FXOWLYDWH WKRXJKVRWKH\DUHRIWHQVLPSO\JDWKHUHGLQWKH ZLOG7KHKHDOLQJTXDOLWLHVRIKHUEVIRXQGLQWKH UHJLRQDUHOLVWHG LQ6HFWLRQ WKHFKDQFHRI UDQGRPO\HQFRXQWHULQJDQ\RIWKHPDUHLQFOXGHG LQWKHHQFRXQWHUWDEOHVLQ6HFWLRQ

$*5,&8/785( 7KHDJULFXOWXUHRIWKHUHJLRQLVHTXDOO\GLYLGHG EHWZHHQIDUPLQJDQGDQLPDO KXVEDQGU\%DUOH\ RDWVDQGEXFNZKHDWDUHWKHSULPDU\JUDLQVWDSOHV DQG WXUQLSV FDUURWV SRWDWRHV DQG RQLRQV DUH LPSRUWDQW WXEHUV 7KH 1RUWKURQV DOVR KDUYHVW VHYHUDOYHJHWDEOHVHYHQPRVWUHVLGHQWVRI/DNH WRZQPDLQWDLQDVPDOOJDUGHQDPLGVWWKHFRPPX QDOSORWVRQWKHZHVWHUQVKRUH2UFKDUGVRIDSSOH FUDEDSSOHDQGSHUVLPPRQWUHHVDUHPDLQWDLQHG DQG DIHZ*UDPX]KDYH EHJXQ VPDOOYLQH\DUGV DOWKRXJKWKHLUZLQHLVSRRUFRPSDUHGWR:RRG HOYHQDQG'RUZLQLRQYLQWDJHV

'20(67,&)$81$ 0RVWFLW\GZHOOHUVSRVVHVV DWOHDVWRQHJRDWRUVKHHS IRU PLON DQG FKHHVH DQG VHYHUDO GRPHVWLF IRZO HJ FKLFNHQVDQGWXUNH\V ,Q(VJDURWKVRPHKRXVHWKHLUIRZO LQDPRUHFRQYHQLHQWVKHGRQWKHSODWIRUPLWVHOILQVWHDG RILQWKH7RZQ6WDEOHVRQVKRUH³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·VZLOG ERDUV 2QPDUNHWGD\VZDQGHULQJVKHSKHUGVDQGVZLQH KHUGV EULQJ DQLPDOV WR WRZQ WR EH VODXJKWHUHG VR WKDW EXWFKHUVPD\VHOOWKHLUPHDWIUHVK(YHU\FRXQWU\KRPH VWHDGKDVVHYHUDOKRUVHVIRU*UDPX]DQG'DOHIRONI\UJDV WKHVHDUHRIWHQ WKHIRFXVRIKXVEDQGU\HIIRUWV 'RJVDUH FRPPRQRQWKHIDUPVDQGLQPRUHXUEDQDUHDVHVSHFLDOO\ DPRQJWKH'DOHIRON

:,/')$81$ $JUHDWQXPEHUDQGYDULHW\RIELUGVQHVWLQWKHYDOOH\V RIWKH /RQJ /DNH DQG WKH 5XQQLQJ 5LYHU GXULQJ WKH ZDUPHUPRQWKV$OWKRXJKVRPHVSHFLHVVWD\\HDUURXQG PLJUDWRU\ELUGVHVSHFLDOO\ZDWHUIRZODUHPRVWQXPHURXV )ORFNVRIEOXHSLJHRQVHDFK DWKRXVDQGVWURQJWDNHXS UHVLGHQFH DORQJ WKH HDVWHUQ VFDUS RI WKH 1DQ $QQHQ *DJJOHVRIJHHVHJUHHQKHDGHGGXFNVFUDNHVFRRWVDQG VZDQVDUHDFRPPRQVLJKWZDGGOLQJWKURXJKWKHVWUHHWVRI (VJDURWK RUDIORDWLQ WKHPDUNHWSRROV DQGEHQHDWK WKH WRZQ·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·V VHWWOHPHQWV 7KHODQJXDJHRIWKHWKUXVK7KURVHOWXQJHLVVSRNHQE\ VRPHRIWKH'DOHIRONQRWDEO\WKRVHRIWKH.U\WKpRGFODQ ,QWHOOLJHQW UDYHQV DOVR OLYH QHDUE\³D ODUJH H[WHQGHG IDPLO\RIWKHPUHVLGHVLQWKHVSXURIWKH/RQHO\0RXQWDLQ ZHVW RI'DOH

7KH 'DOHIRON DUH HVSHFLDOO\ IRQG RI KXQWLQJ ZLWK ´WDPHµELUGVRISUH\7KH:RRGHOYHVDOVRWHDPXSZLWK PDQ\ELUGV³WKUXVKHVVSDUURZVEOXHSLJHRQVDVZHOODV WKH LQWHOOLJHQWGLXUQDOVKRUWHDURZOV ZKLFK OLYH LQ WKH ZRRGVDQGRIWHQVSHDNVRPH6LQGDULQLQDGGLWLRQWRWKHLU RZQODQJXDJH%HWKL)DULWKU\Q6´7RQJXHRIWKH6KRUW HDU2ZOµ 2WKHUDQLPDOVZKLFKLQKDELWWKHFRXQWU\VLGHDERXWWKH /RQJ /DNH LQFOXGH EHDYHU PXVNUDWV IURJV DQG VDOD PDQGHUVVHH6HFWLRQVDQG )LDUD6´'HHUµ ERDU ZLOG JRDWV DQG DWHQOD 6 ´5DEELWV +DUHVµ DUH KXQWHGIRUIRRGDVDUHJUHHQSKHDVDQWVSDUWULGJHVDQG TXDLO)DUWKHUQRUWKORVUDQGLU6´5HLQGHHUµ PHDWLVDOVR DVRXUFH RIVXVWHQDQFH 6LJKWLQJV RIODUJH FUHDWXUHV OLNH FDUX6´(ONµ PRRVHEODFNEHDUVYDULRXVZLOGFDWVDQG ZROYHV LQFUHDVHLQIUHTXHQF\DVRQHPRYHVIDUWKHUDZD\ IURP FHQWHUV RIKDELWDWLRQ 7RZDUGWKHERUGHUVRI0LUNZRRGVRXWKRIWKH)RUHVW 5LYHU WKH VSLGHUSRSXODWLRQ LQFUHDVHV GUDPDWLFDOO\ DQG QRWLFHDEO\6PDOODUDFKQLGVRIDOOYDULHWLHVIORXULVKWKHUH DQGDGYHQWXUHUVEOD]LQJWUDLOVWKURXJK WKHVHZRRGODQGV ZLOOILQGWKHPVHOYHVFRQVWDQWO\EUXVKLQJZHEVWUDQGVRII WKHLU IDFHV :LWKLQ WKH GDUN ZRRG LWVHOIWUDYHOOHUV PD\ HYHQHQFRXQWHUWKHSHULORXVJDOXQJRODQGWKHUXGLPHQWD ULO\LQWHOOLJHQWJLDQWVSLGHUV

Jkfib

7+(/$.(6725. 3HUKDSVWKHPRVWLQWHUHVWLQJDQGXQLTXHRIWKHLQWHOOL JHQWELUGVOLYLQJLQDQGDURXQG(VJDURWKLVWKHVWRUH1R ´6WRUNµ $OWKRXJKWKH\PLJUDWHVRXWKGXULQJWKHZLQWHU WKHVH FUHDWXUHV QHVW DOPRVW H[FOXVLYHO\ XSRQ WKH /RQJ /DNHIURPODWHVSULQJXQWLOHDUO\DXWXPQDQGPRVWPDNH WKHLUKRPHVLQWKHWKDWFKRI(VJDURWK·VVWHHSEDUUHOURRIV DQGDWRSWKHWRZQ·VFKLPQH\V(WKQLFIRONWDOHVFUHGLWWKH VWRUHVZLWKDLGLQJWKH/DNHIRONLQWLPHVRIGDQJHUKDYLQJ DFRXSOHQHVWDWRSRQH·VKRPHLVVDLGWREULQJJRRGOXFN 0RVWVWRUHVVSHDNDVPDWWHULQJRI5KRYDQLRQ :HVWURQ D
&8/785($1' /,)(67
/LIHDPRQJDOO1RUWKURQVFHQWHUVDURXQGWKHH[WHQGHG IDPLO\DQGWKH/DNHIRONDUHQRH[FHSWLRQ
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~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

7+(1257+521 ,1+$%,7$176 6DQGZLFKHGEHWZHHQWKH:RRGHOYHV·GZHOOLQJXQGHU WKHHDYHVRI0LUNZRRGWRWKHZHVWDQGWKH'ZDUYHVRIWKH ,URQ+LOOVWRWKHHDVWWKH0DQQLVKLQKDELWDQWVRI(VJDURWK DQG WKH DUHD VXUURXQGLQJ WKH /RQJ /DNH DUH DOPRVW H[FOXVLYHO\RI1RUWKURQVWRFN7KUHHGLVWLQFWJURXSVRU VXEFXOWXUHVGLVWLQJXLVKDEOHE\FODQOLIHVW\OHDQGWRVRPH H[WHQWSK\VLFDODSSHDUDQFHPDNHXSWKHPDMRULW\RIWKH UHJLRQ·V1RUWKURQUHVLGHQWV

7+(/$.()2/. 25,*,1 :KLOHWKH\DUHW\SLFDOO\1RUWKURQ LQ PDQ\ UHVSHFWV WKH/DNHIRONGLIIHUIURPWKHLUNLQLQWKHLUJUHDWHUHPSKD VLVRQFRPPHUFH7KH\HQMR\HGDFORVHDVVRFLDWLRQZLWK WKH '~QHGDLQ RI$UQRU EHIRUH PLJUDWLQJ IURP (ULDGRU DQGWKXVGHYHORSHGUHODWLYHO\VRSKLVWLFDWHGXUEDQ OLYLQJ KDELWV7KHILUVWZDYHRILPPLJUDQWVWR5KRYDQLRQFURVVHG WKH´+LJK3DVVµRIWKH0LVW\0RXQWDLQV6´+LWKDHJOLUµ LQWKH)LUVW6HFRQGDQG7KLUGFHQWXULHVRIWKH7KLUG$JH VRRQDIWHUWKH'DOHIRON7KHVHFRQGPDMRUZDYHRI/DNH IRON 1R ´6pDKWKpRGµ RU ´XUEDQ 1RUWKURQµ LPPL JUDQWVFDPHWR5KRYDQLRQODWHLQWKHILUVWPLOOHQQLXPRI WKH7KLUG$JHE\ZD\RIWKH*UHDW,VHQ*DSVRXWKRI WKH0LVW\0RXQWDLQVDQGDFURVVWKH8QGHHSV

+20(5(*,21 7KH HDUOLHU PLJUDWLRQ RI /DNHIRON IRXQGHG /RQGDURWK (VJDURWK DQG WKH VPDOOHU WRZQV RI WKH /RQJ /DNH 6 ´1DQ $QQHQµ DQG 5LYHU 5XQQLQJ YDOOH\V6´1DQ&HOGXLQµ 7KHVHF RQG ZDYH RIWRZQVIRON VHWWOHG IDU WKHUVRXWKWKDQWKHLUEUHWKUHQPDN LQJWKHLUKRPHVRQKLOOWRSVLQWKH (DVW%LJKWDPRQJVWVFDWWHUHG+RUVH /RUG FODQV %XKU :LGX 1R ´:RRG 6WURQJKROGµ RQFH WKH FDSLWDO RI WKH VHOISURFODLPHG ´.LQJRI5KRYDQLRQµ9LGXJDYLD UHPDLQV WKH PRVW LPSUHVVLYH RI WKHVH PRUH VRXWKHUO\ KLOOWRS VHWWOHPHQWV

Efik_ife_\cd

32/,7,&$/6758&785( 7RZQVRIWKH1DQ$QQHQDQGWKH1DQ&HOGXLQDUHOHG E\D0DHVWD1R´0DVWHUµ UHVSRQVLEOHIRUPDLQWDLQLQJ WROOVJRYHUQLQJWUDGHDQGVHWWOLQJGLVSXWHV7KH0DHVWD LVHOHFWHGE\WKH$WDQDWKUDLQ1R´&RXQFLORI0HQµ DQG FRPSRVHGRIDOO PDOH FLWL]HQV ´LQJRRGVWDQGLQJµ 7KH EXKUHQ 1R ´)RUWV +LOOWRS6HWWOHPHQWVµ RIWKH(DVW %LJKWUHWDLQDORRVHFODQVWUXFWXUHDQGDUHJRYHUQHGE\D KHUHGLWDU\´7K\QµRUFKLHIRIWKHPDMRUFODQ7KH7K\Q LV DGYLVHG LQ PDWWHUV ERWKPLOLWDU\DQGPHUFDQWLOHE\D FRXQFLORIWKHOHVVHUFODQOHDGHUV1R´$OGDUWKLQJµ (GIUHDKLU 1R ´$VVRFLDWLRQVµ RI PHUFKDQWV DQG FUDIWVSHRSOHSOD\DQ LPSRUWDQWUROHLQSROLWLFVLQDOOWKH /DNHPHQVHWWOHPHQWV,QWKH1DQ$QQHQDQG1DQ&HOGXLQ WKHUHLVOLWWOHXQLW\EH\RQGHDFKLQGLYLGXDOWRZQJRYHUQ PHQWDQGDJHQHUDOIHHOLQJRIIULHQGO\FRPSHWLWLRQH[LVWV DPRQJQHDUE\VHWWOHPHQWV $ ORRVH FRQIHGHUDF\GRHV H[WHQG DPRQJVRPH RIWKH EXKUVRIWKH(DVW%LJKWEXWWKH´KHDGµRIVXFKDFRQIHG HUDF\WUDGLWLRQDOO\WKHFKLHIWDLQRIWKH:DLOGXQJDV1R ´6ODXJKWHUHUVµ FODQ RI%XKU:LGX RSHUDWHV OHVV DV DQ RYHUORUG WKDQ DV D ´ILUVW DPRQJ HTXDOVµ 7KH DOOLDQFH LQFOXGHVWKH$FFDOGLQJDV1R ´3HRSOHRIWKH*XDUGLDQ 2DNµ WKH:LVVLQJDV1R´%DWWOH*XLGHV:DU6FRXWVµ WKH$WKDYDULQJDV1R´2DWK6ZHDUHUVµ WKH*DIROLQJDV 1R´5HQW7ULEXWH3HRSOHµ WKH%U\WWDV1R´'LYLG HUV3HUSHWUDWRUVµ DQGWKHIUHHGDQGHVFDSHGERQGVHUYDQWV RI%XKU:DOGODHV1R´/DZOHVV6WURQJKROG6WUD\KROGµ 62&,$/6758&785( /DNHIRON OLQHDJH LV WUDFHG WKURXJK WKH IDWKHU DQG FRXSOHV JHQHUDOO\ VHWWOH ZLWK WKH KXVEDQG·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´:RRG +RUVH 6WURQJKROGµ ³DOVR FDOOHG %XKU +OHRZ 1R ´6KHOWHULQJEDVLQ6WURQJKROGµ VHDWRIWKH $FFDOGLQJDV ³DQG%XKU6KDOFD1R ´:DUULRU6WURQJ KROGµ:LVVLQJDV &ODQVHWWOHPHQWVRIWKH(DVW%LJKWWKDWDUHPRUHOLNHWKH eRWKUDLP1R´+RUVHIRONµ RU*UDPX]LQFOXGH0HNH /DUQLV 1R ´*UHDW *DOORSµ $WKDYDULQJDV DQG :D\VHQGVWHGH1R´$XURFK&RUUDOµ%U\WWDV 7KHFODQ VHWWOHPHQWV RIWKH VRXWK³$QZXQLQJ 1R ´6ROLWDU\

/RQHO\$ERGHµ VKDUHGE\WKH*DIROLQJDVDQGDVL]HDEOH FRPPXQLW\RI*RQGRULDQSLRQHHUVDQG%XKU:DOGODHV³ UHIOHFW WKH LQIOXHQFH RIRWKHU IRUHLJQ FXOWXUHV RQ WKHVH FRVPRSROLWDQ /DNHIRON 6LQFH WUDGH SOD\V VXFK DQ LPSRUWDQW UROH LQ WKH WRZQVIRONV·OLYHVVHWWOHPHQWVDUHDVDUXOHORFDWHGXSRQ DZHOOWUDYHOOHGHVWXDU\RUURDG(VJDURWK&RWVWRZ1R ´+DPOHWµ /RQGDURWK1R´6KDGRZHG0LVW+DYHQµ %XKU0DUGHQ1R´6ZDPS\9DOOH\6WURQJKROGµ %XKU &KHS 1R ´0DUNHW6WURQJKROGµ DQG %XKU7KXUDVLJ 1R´*UH\3DVV6WURQJKROGµ DOOH[HPSOLI\WKLVHPSKDVLV RQDFFHVVLELOLW\

0,/,7$5<6758&785( $OO PDOHV DJH IRXUWHHQ DQG ROGHU UHFHLYH WUDLQLQJ LQ ZHDSRQU\DQGUXGLPHQWDU\WDFWLFVLQDGGLWLRQWREHJLQ QLQJ D VHYHQ\HDU DSSUHQWLFHVKLS LQ WKH FDOOLQJRIWKHLU FKRLFH³XVXDOO\ WKH FKRLFH RIWKHLU IDWKHU RU PRWKHU·V EURWKHU(YHU\DEOHERGLHGPDOHLVH[SHFWHGWRVHUYHLQWKH IDHUG1R´7RZQ/HY\µ GXULQJWLPHVRIHPHUJHQF\DQG PDQ\ PDNH VROGLHULQJ WKHLU SURIHVVLRQ E\ MRLQLQJ WKH GULKWHQ 1R ´6WDQGLQJ 7RZQ *XDUGµ 7KH IDHUG LV GULOOHG IRUWZRGD\VHYHU\PRQWK E\WKH:HQGULKW1R ´*XDUG /RUGµ DQG KLV &XLUODV 1R ´(OLWH*XDUGVµ )DHUGPHPEHUVDUHIDPLOLDUZLWKWKHXVHRIDVSHDU FRPSRVLWHERZDQGEURDGVZRUGRUKDQGD[H &855(1&< 7KH FXUUHQF\ LV YDULHG (VJDURWK PLQWV WKHmRXQFH PDHO1R´0DUN7RNHQµ ZRUWKKDOIRIDFRSSHUSLHFH DV ZHOO DV WKH PRUH LPSRUWDQW RXQFH PLHWDQ 1R ´0HDVXUHµ ZKLFKLVZRUWKRQHVLOYHUSLHFHDQGXVHGDV DVWDQGDUGWKURXJKRXWWKH1DQ$QQHQDQG1DQ&HOGXLQ 7RZQV LQ WKH (DVW %LJKW XVH PRVWO\ *RQGRULDQ DQG 'RUZLQDGDQFRLQDJH /$1*8$*( %HFDXVHRIWKHLUFRVPRSROLWDQOLIHVW\OH/DNHIRONVSHDN DQHDUO\1RUWKURQ)RUDGDQLQ IRUPRI:HVWURQFORVHO\ UHODWHGWRWKH5KRYDQLRQGLDOHFW*UDPXLN1R´7RQJXH RI WKH 2SHQ &RXQWU\µ PDQ\ ZRUGV DUH ERUURZHG GLUHFWO\IURP*UDPXLNDQG LQWKH(DVW%LJKW IURPWKH 5KRYDQLRQ GLDOHFW eRWKULN 1R ´7RQJXH RI WKH +RUVHIRONµ

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

+286,1* ([WHQGHG IDPLOLHV UHVLGH LQ WKH W\SLFDO 1RUWKURQ ODLQJKXGDQ RUODQJX]DQ 1R ´/RQJKRXVHVµ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

',(7 7KH /DNHIRONGLHW LVPL[HG ZLWK KHDY\OHDYHQHGRU XQOHDYHQHG EUHDGV SURYLGLQJ PRVW RIWKH EXON )UHVK ZDWHUILVKDUHFRQVXPHGLQDEXQGDQFHLQWKH1DQ$QQHQ DQG 1DQ &HOGXLQ DORQJ ZLWK ZLOG RU GRPHVWLF IRZO JDPHDQGGDLU\SURGXFWVPLONDQGFKHHVH IURPGRPHV WLFDWHG JRDWV %HHU PHDG DQG LPSRUWHG ZLQH XVXDOO\ VSLFHGRUZDWHUHGGRZQ VHUYHDVGULQN :256+,3 5HOLJLRQV RI WKH /DNHWRZQ UHJLRQ DUH W\SLFDO RI 1RUWKURQFXOWXUH³FHQWHULQJRQVHFWVEDVHGRQWKHODQG DQGVRXUFHVRIVXEVLVWHQFH9LVFQDN\Q1R´7KH&XOWRI WKH )LVKµ ³D YDULDQWRIWKH&XOWRIWKH *URZLQJ1R ´$ODQDN\Qµ ³FRQFHUQHG ZLWK WKH ZDWHUV RIWKH /RQJ /DNHDQGWKH5LYHU5XQQLQJSUHGRPLQDWHVLQWKHQRUWK ZKLOH LQ WKH (DVW %LJKW WKH &XOW RI WKH 7UHH 1R ´$ODQDN\Qµ LQDPDQLIHVWDWLRQIRFXVHGRQRDNVKDVDQ HVSHFLDOO\ VWURQJ IROORZLQJ

7+('$/()2/. 25,*,1 7KH'DOHIRONDUHFORVHO\UHODWHGWRWKH/DNHIRONRU ´XUEDQ1RUWKURQVµ /LNH WKHLUNLQ WKH 'DOHIRON1R ´'DOHWKpRGµ KDGFORVHFRQQHFWLRQVZLWKWKH'~QHGDLQ RI$UQRUEHIRUHWKH\PLJUDWHGDFURVVWKH+LJK3DVVRIWKH 0LVW\0RXQWDLQVHDUO\LQWKHILUVWFHQWXU\RIWKH7KLUG $JH DQG WKHLU VHPLXUEDQ FXOWXUH VWURQJO\UHIOHFWV WKH FXOWXUDO LQIOXHQFH RI WKH (GDLQ 8SRQ VHWWOLQJ LQ :LOGHUORQGWKHWULEHPLQJOHGZLWKDQFLHQW$GDQSHRSOHV DOUHDG\UHVLGLQJLQWKHUHJLRQ³LQIDFWWKH.U\WKpRG6 1R´5XQH)RONµ WKH IRUHPRVWRIWKHILYHVPDOOFODQV WKDWPDNH XS WKH 'DOHIRON LV SUHGRPLQDQWO\ DQ $GDQ JURXS DEOH WR WUDFH LWV DQFHVWU\ EDFN WR WKH ILUVW $GDQ KRXVHRI%HRU2YHUDOOWKHSHRSOHRI'DOHDUHDUHODWLYHO\ VPDOOWULEHDQGULYDOWKH%HLMDEDUDVWKHVPDOOHVWGLVWLQFW 1RUWKURQJURXSLQ 5KRYDQLRQ /DWHLQWKH7KLUG$JH WKH\FRPHWREHNQRZQDV´%DUGLQJVµDIWHUWKHVOD\HURI 6PDXJ

+20(5(*,21 7KH'DOHIRONLQLWLDOO\VHWWOHGLQWKHVKDGRZRI(UHERU 6´/RQHO\0RXQWDLQµ DSODFHUHYHUHGE\WKHDQFLHQW (GDLQDVDORFDOHZKHUHWKHLUSHRSOHFRXOGEHFORVHWRWKH KHDYHQVWKH\ODWHUVSUHDGVRXWKDORQJWKHXSSHU&HOGXLQ DERYHWKH /RQJ /DNH 7KHWRZQ RI'DOHUHPDLQVWKH WULEH·VRQO\WUXHXUEDQFHQWHUDQGZDVRULJLQDOO\IRXQGHG E\$GDQSHRSOHVODWHLQWKH6HFRQG$JHWKHVXEVHTXHQW 1RUWKURQLQIOX[ KDVUHSRSXODWHGWKHZDQLQJVHWWOHPHQW DQGJLYHQLWD1RUWKURQIURQWLHUWRZQFKDUDFWHU7KHIRON RI'DOHZHUHGLVSODFHGIURP(UHERUIRUDSHULRGRI \HDUV XSRQ WKH DUULYDO RIWKH ILUH GUDNH 6PDXJ LQ7$ GXULQJ WKLV WLPH PRVW RI WKH VXUYLYRUV RIWKH GUDJRQ·VZUDWKGZHOWLQ(VJDURWK 32/,7,&$/6758&785( 'DOH LV WUDGLWLRQDOO\ KHDGHG E\ WKH 7K\Q PDOH RU IHPDOH RIWKH SRZHUIXO .U\WKpRG FODQ (OLWH PHPEHUV IURPHDFKRIWKHILYHFODQV³WKH.U\WKpRGWKH$OGXUOLQJDV 1R´2OG&KLHI3HRSOHµ WKH'DOHWKpRG1R´9DOOH\ 3HRSOHµ WKH)HRWOLQJDV1R´:DUULRU3HRSOHµ DQGWKH 6WDKQRWKpRG 1R ´6WRQHKRXVH )RONµ ³FRPSRVH D VXSHUYLVRU\ERG\FDOOHGWKH.UDHWKLQJ1R´:DU&RXQ FLOµ ZKLFKVHUYHVWRFKHFNDQ\DEXVHRIWKH7K\Q·VSRZHU 0HPEHUVRIWKHFRXQFLODOVRDFWDVWHUULWRULDOUHSUHVHQWD WLYHV IRU WKH I\UJDV 1R ´&ODQ +ROGLQJVµ QRZ OLWWOH PRUHWKDQ DGPLQLVWUDWLYHGLVWULFWV7KH .UDHWKLQJDVDUH HOHFWHGHYHU\PLGZLQWHUE\WKHZDUULRUVRIWKHWULEHERWK ZRPHQ DQG PHQ ZKR WHQG WR UHVSHFW WUDGLWLRQ DQG PDLQWDLQFXVWRPDU\IDPLO\VHDWV7KLVZDUFRXQFLOPHHWV PRQWKO\ RQ WKH HYH RIWKH QHZ PRRQ ZKHQ D OLWWOH ´GRRPµLVLQWKHDLU RXWGRRUVZKHQHYHUZHDWKHUSHUPLWV ,QWKHHYHQWRIZDUHPHUJHQF\VHVVLRQVDUHKHOG $QXPEHURI(GIUHDKLUDOVRSOD\DSDUWLQWKHSROLWLFV RI WKH WRZQ IRU 'DOH LV D UHODWLYHO\ EULVN FHQWHU RI FRPPHUFHGXULQJWKHZDUPHUPRQWKVGHVSLWHLWVSUR[LP LW\WRWKHPRUHDFFHVVLEOH (VJDURWK$IWHU'XULQ·V)RON VHWWOHG (UHERU LQ 7$ WKH LQKDELWDQWV RI'DOH PDLQWDLQHGFORVHWLHVZLWKWKHLU'ZDUYHQQHLJKERUVDQG ODUJHJURXSVRI'ZDUYHVEHFDPHDFRPPRQVLJKWLQ'DOH SDUWLFXODUO\RQPDUNHWGD\V 62&,$/6758&785( 'DOHIRON OLQHDJH PD\ EH WUDFHG HLWKHU WKURXJK WKH PRWKHURUIDWKHUDQGFRXSOHVXVXDOO\VHWWOHZLWKWKHZLIH·V IDPLO\0DUULDJHFDQRFFXURXWVLGHRIWKHFODQRUWULEHEXW XQLRQVZLWKQRQ1RUWKURQVDUHTXLWHUDUH 6(77/(0(173$77(516 'DOHLVWKHRQO\WRZQFHQWHUIRUWKHUHJLRQDQGKRPHWR PDQ\RIWKHWULEH·VSHRSOH,WDOVRVHUYHVDVWKHI\UJDIRUWKH SUHHPLQHQW .U\WKpRG FODQ 0DUNHW GD\V DUH KHOG WKHUH HDFKPRQWKLQDQDUHDGHVLJQDWHGDVQHXWUDOE\WKHFODQV WLPLQJFRLQFLGHVZLWKWKHPRRQ·VSKDVHV³PDUNHWGD\LQ (VJDURWKLVKHOGDWIXOOPRRQZKLOH'DOH·VPDUNHWWDNHV SODFHZKHQWKHPRRQUHDFKHVWKHWKLUGTXDUWHU

6FDWWHUHGKRPHVWHDGVRIRQHWRWKUHHIDPLOLHVGRWWKH VXUURXQGLQJFRXQWU\VLGH6XFKKRXVHKROGVEDQGWRJHWKHU IRUSURWHFWLRQDQGJHQHUDOO\KDYHVHYHUDOGHIHQVLYHVWUXF WXUHV VXFK DV D GLWFK DQG HDUWKHQ UDPSDUW RU ZRRGHQ SDOLVDGHLQFRUSRUDWHGLQWRWKHLUFRQVWUXFWLRQ7KH\FHQ WHUDURXQGWKHFODQI\UJDV$OGXUOLQJHDUG1R´+RPHRI WKH $OGXUOLQJDVµ 6DLGDOEXLUK 1R ´0RXQWDLQ 5HVL GHQFHµVHDWRIWKH'DOHWKpRG )HRWOLQJHDUG1R´+RPH RIWKH )HRWOLQJDVµ DQG6WDKQRKROW1R ´'ZHOOLQJRI WKH6WDKQRWKpRGµ

KiX[`e^

(OLWH ZDUULRUV RU FXLUODV VHUYH DV ERG\JXDUGV DQG OLHXWHQDQWV IRUWKH OHDGHUV RIHDFK RIWKH ILYH 'DOHIRON FODQV )DHUG PHPEHUV DUH DFTXDLQWHG ZLWK WKH XVHRID WUDGLWLRQDO VSHDUDEURDGVZRUGDQGDFRPSRVLWHERZ &ODQ ZDU OHDGHUV DQG FXLUODV DUH DOVR H[SHULHQFHG DW ILJKWLQJRQKRUVHEDFN

&855(1&< %DUWHULVWKHVWDQGDUGIRUPRIH[FKDQJHDPRQJRXWO\LQJ KRPHVWHDGV7KHFRLQDJHRI(VJDURWKLVFRPPRQ'DOH PLQWVWKUHHFRLQVRILWVRZQLQOLPLWHGQXPEHUVDVZHOOWKH RXQFHDLUHQ1R´,URQµ ZRUWK RIDFRSSHUSLHFHWKH 0,/,7$5<6758&785( $OOPDOHVDQGIHPDOHVZKRZLVKWR UHFHLYHWUDLQLQJLQ RXQFHPRHO1R´0DUN7RNHQµ ZRUWKRQHFRSSHU VXUYLYDO DQGKXQWLQJVNLOOVEHJLQQLQJDWDJHVHYHQWKRVH SLHFHDQGWKHmRXQFHIHODGRHO1R´0DQ\SRUWLRQHGµ IRXUWHHQ DQG ROGHU UHFHLYH WUDLQLQJ LQ ZHDSRQU\ DQG ZRUWKRIDVLOYHUSLHFH$OORIWKHVHFRLQVDUHDFFHSWHG UXGLPHQWDU\ WDFWLFV 0DQ\ IRXUWHHQ\HDUROGV OLYLQJ LQ LQWKH1DQ$QQHQDQG1DQ&HOGXLQDPRQJVWWKH:RRG 'DOHLWVHOIEHJLQDVHYHQ\HDUDSSUHQWLFHVKLSLQWKHFDOOLQJ HOYHVDQGZLWKWKH'ZDUYHVRIWKH,URQ+LOOV EXW WKH\ RIWKHLUFKRLFH³XVXDOO\GLFWDWHGE\WKHLUIDWKHURUPRWKHU·V UHPDLQUDWKHUUDUHRXWVLGHRIWKHVHUHJLRQV EURWKHUIRUER\VDQGE\WKHLUPRWKHURUPRWKHU·VVLVWHUIRU /$1*8$*( JLUOV6RPH\RXQJJLUOVDUHVFKRROHGDVKHDOHUVDQGOHVV /LNHWKHLU/DNHIRONQHLJKERUVWKHIRONRI'DOHVSHDN RIWHQVHHUVERWK RIWKHVHFDOOLQJVUHPDLQDOPRVWH[FOX VLYHO\WKHGRPDLQRIZRPHQ(YHU\DEOHERGLHGPDQDQG DQHDUO\IRUPRI1RUWKURQ)RUDGDQLQ :HVWURQUHODWHG DOOZRPHQWUDLQHGLQWKHXVHRIZHDSRQU\DUHH[SHFWHGWR WR *UDPXLN EXW DOVR ERUURZ VRPH ZRUGV IURP WKH VHUYH LQ WKH IDHUG GXULQJ WLPHV RIHPHUJHQF\ DQG DUH ODQJXDJHRIWKHLU$GDQSUHGHFHVVRUV 0DQ\PHPEHUVRI GULOOHGIRUWZRGD\VHYHU\PRQWKE\WKHPHPEHUVRI'DOH·V WKH .U\WKpRG FODQ FDQ XQGHUVWDQG WKH VSHHFK RI WKH WKUXVKHV1R´7KURVHOWXQJHµ WKDWLQKDELW5KRYDQLRQ GULKWHQ DQ DELOLW\SUREDEO\VWHPPLQJIURPWKHLUXVH RIWKHWKUXVKDVDPHVVHQJHU $33($5$1&( 7KH'DOHIRONDUHDOPRVWH[FOXVLYHO\GDUN KDLUHG ZLWK D UDQJH RIEURZQ VKDGHV SUH GRPLQDWLQJ DQGKDYHH\HVRIJUH\EODFNRU EOXH EXWWKH\ UHWDLQ WKH IDLUVNLQ W\SLFDO RI WKHLU1RUWKURQ KHULWDJH7KH\DUH HVSHFLDOO\ WDOOWKHPHQDYHUDJLQJ WKHZRPHQ 0HPEHUVRIWKH.U\WKpRGFODQJHQHUDOO\SRV VHVV FRDOEODFN KDLU JUH\RUEODFN H\HV DQG VWDQGVRPHZKDWWDOOHUWKDQ WKHDYHUDJH7KH IRONRI'DOHDUHQRWHVSHFLDOO\KDLU\EXWPDQ\ RIWKHPHQVSRUWEHDUGVRUPRUHFRPPRQO\ ORQJ GURRSLQJ PXVWDFKHV 6RPH KRZHYHU SUHIHUWRJRFOHDQVKDYHQDVRPHZKDWXQXVXDO SUDFWLFHIRU1RUWKURQVLQKDELWLQJVXFKDFKLOO\ FOLPH 7KH\ZHDUPLGWKLJKWRNQHHOHQJWKWXQLFV FORDNV DQG IRU VRPH ZRPHQ VKRUW VKLIWV PDGH RIZRRO RU OHVV RIWHQ OLQHQ RUOLQVH\ ZRROVH\GHFRUDWHG ZLWK HPEURLGHU\ 'XULQJ WKHZDUPHUPRQWKVWKHSHRSOHRI'DOHUHWDLQ WKHLUVWLWFKHGVRIWOHDWKHUIRRWZHDUEXWOHDYH RIIWKHPHGLXPOHQJWKEULWFKHVIRUPHQ DQG OHJJLQJVRIZRRORUDQLPDOKLGHZRUQGXULQJ FROGVSHOOV

0HPEHUV RIWKH GULKWHQ SRVVHVV FKDLQ RU VFDOH PDLO VKLUWVDQGUHLQIRUFHGOHDWKHUSRWKHOPV&ODQOHDGHUVDQG FXLUODVDUHLQYDULDEO\EHWWHUHTXLSSHGZLWKFKDLQRUVFDOH KDXEHUNVDQGXVXDOO\RSHQKHOPVZLWKQRVHJXDUGVDQG DYHQWDLOV6RPHFODQOHDGHUVZHDUHODERUDWHPHWDO KHOPV ZLWKGHFRUDWHGDQGRIWHQJURWHVTXHIDFHPDVNVKHLUORRPV RIWKHLU$GDQDQFHVWRUV

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·VZDUHV

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´7KH&XOWRIWKH 6WDUµ DYDULDQWRIWKH&XOWRIWKH(DUWK1R´8HUGDN\Qµ 7KH $ODQDN\Q 1R ´7KH &XOW RIWKH *URZLQJµ DOVR KROGVVZD\DPRQJVWWKH'DOHIRON

+20(5(*,21 7KH*UDPX]OLYHLQUXUDO:LOGHUODQGIURPWKHUXJJHG KLOOVLQWKHVRXWKHUQVKDGRZRIWKH*UH\0RXQWDLQVWRWKH UROOLQJSODLQVVRXWKHDVWRI0LUNZRRG+DOIRIWKHWZHOYH FODQVOLYHQRUWKRIWKH&HOGXLQ2IWKHVHILYHLQKDELWWKH JODFLDOJXOOLHVDQGVWHHSVORSHVRIWKHRDNVDYDQQDKWKHLU UHJLRQRIVHWWOHPHQWLVERUGHUHGE\WKH/RQJ/DNHYDOOH\ LQWKHZHVWWKH,URQ+LOOVDQGWKH5HGZDWHU5LYHUYDOOH\ LQWKHHDVWDQGWKH5LYHU5XQQLQJYDOOH\LQWKHVRXWK 32/,7,&$/6758&785( *UDPX] VRFLHW\ LV FODQEDVHG DQG OHG E\ KHUHGLWDU\ FKLHIWDLQV1R´7K\QDVµ $VWKH\KDYHIRUFHQWXULHVWKH WZHOYH7K\QDVRVWHQVLEO\PHHWWKUHHWLPHVD\HDURUGXULQJ HPHUJHQFLHV LQ WKH /DNHIRONVHWWOHPHQW MXVWHDVWRIWKH ,DFK &HOGXLQ 6 ´5XQQLQJ 5LYHU )RUGµ 1R ´:LGXZDHGµ DSODFHRIUXLQVLQFHWKH*UHDW3ODJXH 7KH7K\QRIWKHODUJH)ULWKDV1R´3URWHFWRUV 3HDFH .HHSHUVµ FODQRSHUDWHVDVDVRUWRI´ILUVWDPRQJHTXDOVµIRU WKHQRUWKHUQFODQVWKHVHLQFOXGHWKH+DWKpRG1R´+HDWK 3ODLQVIRONµ WKH%RUJLQJDV1R´6HFXUHUVµ WKH:HQWODV 1R´3LOODJHUVµ WKH)URKDUJDV1R´3OXQGHUHUVµ DQGWKH VSDUVH%HDUZ\QDV1R´%RDU)ULHQGVµ RIWKH)DU1RUWK 6LPLODUO\WKH7K\QRIWKHUHYHUHG:LWKUDV1R´2SSRVHUVµ FODQDFWVDVDUHSUHVHQWDWLYHIRUWKHVRXWKHUQFODQVVSHDNLQJ IRUKLVIHOORZ7K\QDVZKHQWKH\FDQQRWDWWHQGWKH)DGDUWKLQJ 1R´&RXQFLORI(OGHUVµ WKLVLVQRWXQFRPPRQFRQVLGHU LQJWKHGLVWDQFHEHWZHHQWKHLUKRPHDODQEXKUHQ1R´7LP EHU6WURQJKROGVµ DQGWKHUXLQVRYHUORRNLQJWKH5XQQLQJ 5LYHUIRUG 62&,$/6758&785( *UDPX]OLQHDJHLVWUDFHGVROHO\WKURXJKWKHIDWKHUDQG WKHFRXSOHUHVLGHVZLWKWKHKXVEDQG·VIDPLO\ 0DUULDJHV FDQRFFXURXWVLGHRIWKHFODQRUWULEHEXWXQLRQVZLWKQRQ 1RUWKRQVDUHUDUH

6(77/(0(173$77(516 6FDWWHUHGIDUPLQJKRPHVWHDGVDUHRFFXSLHGE\RQHWR WKUHHH[WHQGHGIDPLOLHV,QWKHQRUWKWKHVHVPDOOYLOODJHV 1R´0DHGZHGXNDVµ DUHXVXDOO\SURWHFWHGE\DGLWFK DQG DQ HDUWKHQGLNHVXUPRXQWHGE\D ZLWK\IHQFH7KH FKLHI PDHGZHGXNDV RI WKH 1RUWK DUH :DQJDLO 1R 7+(*5$08=25 ´3ODLQVKDOO)LHOG&RUQHUµVHDWRIWKH)ULWKDV +DWKHUEROW 3/$,16)2/. 1R ´+HDWKHU +RPHµ +DWKpRG :LWKHERUG 1R 25,*,1 ´:LWK\VKLHOGµ%RUJLQJDV &DVKHUG1R´6HGJH&RDUVH $QDJULFXOWXUDO1RUWKURQJURXSWKH*UDPX]EHFDPH *UDVV+RPHµ:HQWODV DQG&ODQE\UVW1R ´%UDFNHQ DGLVWLQFWVXEFXOWXUHGXULQJWKH )LUVWPLOOHQQLXP RIWKH )LHOGµ )URKDUJDV 7KH %HDUZ\QDVPDNHWKH /DNHIRON 7KLUG$JH&ORVHO\UHODWHGWRWKH/DNHIRONHVSHFLDOO\WKH WRZQRI%XKU7KXUDVLJWKHLUFHQWUDOSODFH (DVW %LJKWHUV DQG WKH 'DOHIRON WKH *UDPX] 1R ,Q WKH VRXWK ODUJHU QXPEHUV RI KRPHVWHDGV EDQG ´*UDVVODQGHUV )LHUFH 5DFHµ DUH RIWHQ FRQIXVHG ZLWK WRJHWKHU LQWR DODQEXKUHQ OLNH WKH FKLHI:LWKUDV VHWWOH WKRVHWZREXWDUHDFWXDOO\DGLVWLQFWWULEH7KHLUDQFHVWRUV PHQW DW /HRYLGXNDV 1R ´3OHDVDQW 9LOODJHµ WKDW LV PLJUDWHG WR 5KRYDQLRQ YLD WKH ,VHQ *DS EHWZHHQ7$ FHQWHUHGDURXQGDGHIHQVLYHKLOO1R´PRWWHµ HQFORVHG DQG7$DORQJZLWKWKHVHFRQGZDYHRIXUEDQ E\ D PRDW DQG ZRRGHQ IHQFH 'XULQJ UHODWLYHO\ VHFXUH 1RUWKURQVZKRVHWWOHGWKH(DVW%LJKW WLPHVWKHHQFORVXUHVDUHXVHGDVDQLPDOSDGGRFNV7K\QDV VSHQGDVLJQLILFDQWSRUWLRQRIWKH ZDUPHUPRQWKV DZD\ IURP WKHLU FKLHI VHWWOHPHQW WUDYHOOLQJ IURP RQH FODQ FRPPXQLW\WRDQRWKHUDFFRPSDQLHGE\DVPDOOHQWRXUDJH VWD\LQJRQH[WHQGHGYLVLWVLQWKHKRPHVRIWKHLUNLQVIRON

0,/,7$5<6758&785(

+286,1*

%HJLQQLQJDWDJHVHYHQDOOPDOHVUHFHLYHVFKRROLQJLQ YDULRXV IDUPLQJ WHFKQLTXHV $W DJH IRXUWHHQ DQG ROGHU WKH\UHFHLYHWUDLQLQJLQZHDSRQU\DQGUXGLPHQWDU\FRP EDWWDFWLFV(YHU\DEOHERGLHGPDOHLVH[SHFWHGWRVHUYHLQ WKHIDLUG1R´&ODQ/HY\µ (OLWHZDUULRUVFRPSULVHWKH GULKWHQ1R´&ODQ*XDUGµ PRUHRIDSHWW\QRELOLW\WKDQ D VWDQGLQJ DUP\ IURP WKLV ORW HDFK 7K\Q KDQGSLFNV D KXLGULKWHQRUKXLGFDLUO1R´+RXVHJXDUGµ RIVL[ZDU ULRUV WR VHUYH DV KLV ERG\JXDUG $OO IDLUG PHPEHUV DUH DFTXDLQWHGZLWKWKHXVHRIDWUDGLWLRQDO VSHDUHLWKHUD EURDGVZRUGVFUDPDVD[1R´/RQJNQLIHµ RUKDQGD[H DQGHLWKHUDVKRUWERZIRUPRXQWHGDUFKHU\ RUORQJERZ 0DQ\ZDUULRUVHVSHFLDOO\WKRVHIURPVRXWKHUQ5KRYDQLRQ DUHH[SHULHQFHGDWILJKWLQJRQKRUVHEDFN

0RVW*UDPX]OLYHLQVKRUWHQHGUHFWDQJXODUYHUVLRQVRI WKH WUDGLWLRQDO 1RUWKURQ ODQJX]DQ RU ODLQJKXGDQ 1R ´/RQJKRXVHVµ 7KHVHELGDKXGDQ1R´&RWWDJHVµ KDYH ZRRGIUDPHVHLWKHUSODQNRUZDWWOHDQGGDXEZDOOVDQG KLJKWKDWFKHGURRIVFRQWDLQLQJVWRUDJHORIWV7KHIORRURI WKHPDLQURRPLVVXQNVRPH LQWRWKHJURXQGDORZ GRRUHTXLSSHGZLWKDUDPSRUVWDLUVDOORZVHQWU\2IWHQ D VPDOO JUDLQ VWRUDJH URRP RU D VWDEOH IRU OLYHVWRFN LV DWWDFKHG WR WKH VLGH RIWKH ELGDKXG WKH ERGLHV RIWKH DQLPDOV SURYLGH DGGLWLRQDO ZDUPWK GXULQJ WKH ZLQWHU 7KHTXDUWHUVIRUPHQDQGDQLPDOVDUHDFFHVVHGE\VHSDUDWH HQWULHV

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´7RQJXH RIWKH QHDUO\ HYHU\ PHDO WKH *UDPX] RIWKH 1RUWK DUH WKH 2SHQ&RXQWU\µ ZLWKYDULRXVUHJLRQDOYDULDWLRQVGHSHQ FUHDWRUV RIWKH SRSXODU DQG QRZ ZLGHVSUHDG ´ERFNµ D GHQWXSRQQHLJKERULQJODQJXDJHV$ORQJWUDGHURXWHVWKH GDUNKHDG\DOHRULJLQDOO\EUHZHGLQVSULQJWLPHH[FOXVLYHO\ FORVHO\UHODWHGWRQJXHRI5KRYDQLRQ:HVWURQ)RUDGDQLQ IRUFRQVXPSWLRQGXULQJWKH7KURVHOGHJ1R´'D\RIWKH LVFRPPRQO\XVHG 7KUXVKµ IHVWLYDOKHOGRQWKHILUVWGD\RI7KULPLOFH1R ´0D\µ $33($5$1&( %HFDXVHRIWKHLU1RUWKURQNLQVKLSEORQGKDLUDQGEOXH :256+,3 H\HV JHQHUDOO\ SUHGRPLQDWH DPRQJ WKH *UDPX] VRPH *UDPX]UHOLJLRXVVWUXFWXUHVDQGKROLGD\VDUHW\SLFDORI YDULDWLRQGRHVH[LVWKRZHYHUHVSHFLDOO\DPRQJWKH:LWKUDV ZKRVWLOOKDUERU$GDQEORRGLQWKHLUYHLQVDQGWKHUHIRUH 1RUWKURQFXOWXUHDOWKRXJKWKH8HUGDN\Q1R´&XOWRI WHQG WR KDYH GDUNHUKDLU 7KH 3ODLQVIRONDUHWDOOHUWKDQ WKH(DUWKµ SUHGRPLQDWHV7KH$ODQDN\QRU´&XOWRIWKH ´FRPPRQSHRSOHµEXWVKRUWHUWKDQPRVWRIWKHLU1RUWKURQ *URZLQJµLVDOVRFRPPRQDPRQJWKRVH*UDPX]PDNLQJ QHLJKERUVDVDUHVXOWRIWKHLUJUDLQEDVHGGLHW³WKHPHQ WKHLUKRPHVQHDU0LUNZRRG·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eRWKUDLPRIWKHHDVWHUQSODLQV RI5KRYDQLRQ

7KH (ULDGRUDQ 1RUWKURQV ZKR UHVLGH LQ KLOOIRUWV LQ HDVWHUQ&DUGRODQVHUYLQJLQLWLDOO\DVPHUFHQDULHVIRUWKH '~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s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eRWKpRGVXE FXOWXUHZKLOHWKDWJURXSZDVLQWKHPLGVWRIDPLJUDWLRQ WRWKHXSSHU1DQ$QGXLQFLUFD7$ $IWHU WKH IDOO RI$QJPDU LQ 7$ PDQ\ RIWKH (VWDUDYL ZHUH DOVR DVVLPLODWHG LQWR WKH eRWKpRG WKRVH ZKRUHIXVHGWRUHQRXQFHWKHLUVHUYLFHWRWKH:LWFKNLQJ ZHUHODWHUGHVWUR\HGE\)UXPJDUDQGKLVeRWKpRGLQ7$ 'XULQJWKLVWLPHWKH(ULDGRUDQ1RUWKURQVLQZKDW ZDVRQFH&DUGRODQDQG$QJPDUZHUHFRPSOHWHO\DVVLPL ODWHGLQWRWKHFXOWXUHRIWKHORFDOSRSXODFH7KXVE\DERXW 7$ RQO\WKH 5LYHUIRON WKH %HRUQLQJV GHVFHQ GDQWVRIWKH %HLMDEDU WKH/DNHIRONRIWKH1DQ$QQHQ DQG 1DQ &HOGXLQ WKH 5RKLUULP GHVFHQGDQWV RI WKH eRWKUDLP DQG eRWKpRG D KDQGIXO RI :RRGIRON D KDQGIXORI*UDPX]DQGDIWHUWKHGHDWKRI6PDXJLQ7$ WKH%DUGLQJVGHVFHQGDQWVRIWKH'DOHIRON VXUYLYH DVGLVWLQFWVXEFXOWXUHVZLWKVHSDUDWH1RUWKURQGLDOHFWV 7KH WDEOHV EHORZ VXPPDUL]H WKH YDULRXV VXEFXOWXUHV DQG GLDOHFWV RIWKH7KLUG $JH 1RUWKURQV )RUWKH ODQ JXDJHWDEOHVDQG WKHIROORZLQJDSSO\,QGLYLGX DOV ZKR VSHDN GLDOHFWV ZLWKLQ WKH VDPH SULPDU\EUDQFK HJ,RU,, FDQFRPSUHKHQGHDFKRWKHUDWWKUHHODQJXDJH

UDQNV EHORZ WKHLU UHVSHFWLYH D
1257+521/$1*8$*(6 &,5&$7$ 7DEOH

$

(ULDGRUDQ :HVWURQ 5LYHUPHQ 5KRYDQLRQ:HVWURQ /DNHPHQ'DOHPHQ *UDPXLN *UDPX]

, %

eRWKULF eRWKUDLP (VWDUDYLN (VWDUDYs

&

1HQHGXN 1HQHGDLQ 1DKDLGXN :RRGPHQ

,, '

$WOLGXN %HLMDEDU

1257+521/$1*8$*(6 $77+((1'2)7+(7+,5'$*( 7DEOH ,

$

:HVWURQ /DNHPHQ%DUGLQJV 5LYHUPHQ *UDPXLN *UDPX]

% ,, &

eRWKLUULF5RKLUULF eRWKpRG5RKLUULP 1DKDLGXN :RRGPHQ $WOLGXN %HRUQLQJV

8.0 COMMERCE AND INDUSTRY

48

Typically, shops in Esgaroth open shortly after dawn and remain open until just before dusk, but many vendors operate on a rather whimsical schedule and can be convinced by a tactful monetary incentive to open their business during odd hours. In the summer, some busi8.1 TRADE nesses close for a short break during the early afternoon. Trade is the very essence of Esgaroth’s existence. The Esgaroth market runs year round, although it attracts Although barter remains the norm in northern Rhovanion, far fewer folk during the winter. By contrast, the smaller towns in the Nan Annen and Nan Celduin do accept Dale market, held a week after Esgaroth’s, ceases with the certain widespread and high quality coins. Esgaroth occafirst snowfall after harvest and does not begin again until sionally mints its own silver piece, the mietan (No. the following spring thaw. “Measure”), considered to be the standard throughout The monthly market days held each full moon are Rhovanion. Weighing roughly ¼ of an ounce, the mietan characterized by an influx of rural folk and peddlers is equivalent to the ¼ ounce silver pieces minted in bringing cheap goods to sell or trade. Hoards of entertainArthedain, Gondor, and Dorwinion. ers (scops, musicians, puppeteers, magicians, playactors, The town Maela (No. “Coiner”), Linlocc the silverand so forth) perform on the Huwaerkyn, and a bevy of smith (see Sections 2.0 and 14.0), also occasionally mints petty thieves, con-artists, and pickpockets join in the fray. a smaller À ounce copper piece, the mael (No. “Mark, Barter remains quite common, particularly in Esgaroth. Token”). His is a coveted position to many Lake-folk, yet A lively and competitive atmosphere permeates all transhe exercises little true authority, minting coins only at the actions there, especially on market days, and haggling over specific request of the Maesta and then always in strictly prices is an accepted, even expected, part of commerce. limited quantities. In neighboring Dale, Leovric (No. Prices in the platform-town are modest for food and “Most Beloved”) the jewelsmith performs a similar funclodging, high for certain raw materials, and low for most tion, minting restricted numbers of the À ounce silver manufactured goods. On market days, a canny bargainer feladoel (No. “Many-portioned”), the ¼ ounce moel can save a great deal on most anything but prepared food (No. “Mark, Token”), and the ¼ ounce airen (No. and drink (which tend to increase in price), but a customer “Iron”). unwilling or unable to negotiate is likely to be swindled— The larger mietan of Esgaroth and the moel of Dale are merchants will initiate a potential sale with an absurdly often cut in half to provide smaller denominations, and expensive pitch. both the haelfamietan (No. “Half Mietan”) and the Esgaroth’s edfreahir, loose voluntary associations of haelfamoel are accepted wherever the full-sized coins are. merchants and craftsmen, often influence the prices of This presents some danger because it is easier for unscruvarious commodities, but their guidelines are hardly strict pulous types to “clip” these halved Northron currencies regulations. Often, there are several edfreahir that serve (usually the higher valued silver coins). Hence it is a the same segment of society; the associations exist primacommon practice for Lake-folk involved in a transaction rily to give folk plying similar crafts some bargaining to rub their fingers along the edge of a coin in order to feel leverage, access to apprenticeships, and a chance to socialfor telltale burrs that might indicate a recent trimming and then to gently bite the coin to test its solidity (and ize with like-minded people. Membership is not obligatherefore its purity). These are normal precautions exer- tory, and some Lake-folk refrain from joining any edfreahir cised almost without exception among the wily merchants in order to keep trade secrets and avoid paying dues. Other operating upon the Huwaerkyn (No. “Great Wharf”), wealthier townsfolk become members of several edfreahir, where many of the shops and stalls peddling wares are but this is less common and not generally deemed approlocated. Even on market days during the coldest months priate. Goods arrive from various origins by a number of most merchants wear fingerless gloves or mittens while at their stalls to allow them to check the currency they routes. Wines, olive oil, dyes, olives, grapes, and shellfish receive (see the tables in Section 19.6 for more informa- from Dorwinion, the Redwater valley, and the lower tion on coinage values and prices in Esgaroth and Dale). River Running valley find their way up the Celduin to the warehouses and stalls of Esgaroth. Wood-elf lumber, woodcrafts, longbows, salted foods, fruit, herbs, and luxury items like fine wines, jewelry, and cloth (especially spidersilk) arrive by raft down the Forest River. Dwarves of the Iron Hills send metals, metalwork, stonework, gems, and weaponry overland to the market.

Sundry commodities from the Woodmen (wood-crafts, hides, furs, salted meats, beeswax, and herbs) and from the Beijabar (beeswax, hides, furs, oak-craft, grapeleaf magnolia honey, and mead) travel to Lake-town from the Nan Anduin via the Old Forest Road (No. “Viduweg”) through Mirkwood. Rarer items from Gondor, Moria, and Arthedain also travel this route, although the track through Mirkwood has become particularly dangerous since the Plague; the other option for traveling to Laketown from the West —skirting the northern edge of the Dark Forest along the perilous, Orc-ravaged Men Rhúnen (No. “Aesdweg”) and Men Mithrin (No. “Graigweg”)— has its own hazards. Closer neighbors also provide goods to be sold at Laketown. Dale exports wool, cut stone, salt, metalwork, weaponry, jewelry, glass, beer, and dairy goods to Esgaroth; the nearby village of Cotstow exports pottery, baskets, and waterproof reed mats; Londaroth grinds most of the grain for the town; and the regional Gramuz farms provide grains, horses, salted meats, linen, beer, and earthenware pottery. In addition to its importance as a mercantile center, Lake-town is known for its barrels, fish, cloth, grains, candles, and a vast assortment of “finished” goods. Merchandice arriving at Esgaroth is subject to a steep ten percent toll known as a hlasting (No. “Cargo Toll”) upon each vessel or cart unloading at the town-upon-thewater. This tariff may lessen according to the nature and origin of the commodities, for Esgaroth has many trade agreements with different governments, or depending upon the particular merchant concerned, since regular traders may obtain licenses for certain cargoes. Payloads arriving at Lake-town have the value of their goods assessed by the gate drihten before they cross the timber bridge to the town proper (if they are being transported by land) or by drihten-manned ships patrolling the Long Lake near Esgaroth (if by water). If a merchant disagrees with the assessment, he or she must wait until either the Maesta or an arbitrator approved by Odagavia from a relevant edfreahar can come and settle the dispute. Any arbitrator besides the Maesta invariably charges the merchant a fee (usually too much to make disputing the drihten’s assessment worthwhile), and if no one is immediately available to arbitrate, the drihten typically confiscate and impound the goods and vessel until someone is. At one time, traders shipping merchandise up the River Running were forced to pay additional tolls in order to unload at Londaroth and portage around the eighty foot falls at Lindal (S. “Mere’s End”). Including portage tariffs, the total charge to river mangung (No. “Trade, Traffic”) was decidedly steep and made large shipments a necessity in order to insure the seller garnered a profit.

However, since the Plague and the subsequent depopulation of Londaroth, portage tolls are no longer collected there, and merchants operating up and down the Celduin are now reaping rich profits. More lucrative, however, are the successful smuggling operations that manage to avoid Lake-town’s high tariffs altogether. Much of this illicit trading is controlled by Kynoden, Kryn of the town’s shipbuilding edfreahar, the Boed-bylgas. Kynoden has contacts all along the River Running, including a connection to the wealthy miller Viloric at Londaroth that is essential to his smuggling operation. The Boed-bylgas is responsible for the construction of a number of “specially designed” boats plying the waters of the Long Lake and the River Running. They receive twenty-five to fifty percent of the take in Esgaroth, and their illegal operations work out of a small one-story inn, the Erannun (S. “Lone Sunset”), located by the small boatbuilding inlet on the west side of town. Goods like furs, gems, dyes, and rare Elven wines arrive as part of the inn’s regular food shipments and are inserted into bags of ground grain at the Londaroth mills to the south. These shipments are exempt from regular inspection by the drihten patrol boats and are unloaded with the use of a parbuckle directly into the Erannun’s kitchen. Similarly, outgoing merchandise is slid down the cleaner of the kitchen’s two movable refuse ramps directly onto boats in the protected bay. Tariffs along other parts of the waterway vary. Because of Dale’s location beyond Esgaroth at the head of the River Running, and its proximity to the platform-town, the town charges only a minimal hlasting of three to five percent on incoming goods, as do most of the smaller trade towns along the River Running. The Wood-elves exact a variable river toll on mangung travelling up the Forest River, but share the upkeep duties of that tributary (dredging and maintaining the steep banks to prevent collapse) with the folk of Lake-town; historically this has been a point of friction between the two peoples.

8.2 CRAFTS The four largest and most prominent of the craft edfreahir are the Cladh-wyrkendas (No. “Cloth workers”), the Wodu-craftas (No. “Woodworkers”), the Vebberas (No. “Weavers”), and the Visceras (No. “Fisherfolk”). The Cladh-wyrkendas is the main clothworkers’ association; the Vebberas is merely a more specific association related to it. The two enjoy a close working relationship—few major association decisions are made by either one without consulting the other first. Both edfreahir are unusual in that many of their members do not run workshops of their own. Instead, they ply their craft either out of their own homes or in one of the two large association halls. Other merchant members then sell the goods on their behalf.

49

KiX[\^ff[j

7KH9LVFHUDVLVSHUKDSVWKHODUJHVW HGIUHDKDULQWRZQDQGRSHUDWHVPRUH DV D FODQ WKDQ DQ DVVRFLDWLRQ ,WV PHPEHUVLQFOXGHDOORIWKHILVKHUIRON LQYROYHGLQFDWFKLQJILVKKDUYHVWLQJ PXVVHOV DQG VHOOLQJ ERWK DW WKH 9LVFZLF 1R ´)LVKPRQJHUV· 0DU NHWµ 7KH%RHGE\OJDVDOUHDG\GLVFXVVHG DERYHDOVRKROGVVLJQLILFDQWSROLWLFDO FORXWLQ(VJDURWK,WVPHPEHUVOLNH WKRVHRIWKH9LVFHUDVDUHVRPHZKDW FODQQLVKLQWKHLUUHODWLRQVKLSWRRWKHU FRPPXQLW\PHPEHUV $OWKRXJKFDQGOHPDNLQJLVRQHRI WKH FUDIWV IRU ZKLFK /DNHWRZQ LV HVSHFLDOO\NQRZQWKHFKDQGOHUVKDYH EHHQ XQDEOH WR RU XQLQWHUHVWHG LQ RUJDQL]LQJ LQWR DQ\ PDMRU JURXS LQJVLQVWHDGPRVWPDLQWDLQIULHQG VKLSVDQGEXVLQHVVSDFWVZLWKDQXP EHURIWKHLUFRPSDWULRWV 2WKHULPSRUWDQWEXWOHVVSRZHUIXO HGIUHDKLU LQFOXGH WKH $LUQVNiSDUDV 1R´,URQ6PLWKVµ WKH+~GKZLUWDV 1R ´/HDWKHUZRUNHUVµ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´&RSVH :RRGVPDQµ +ROWLQJ NHHSV LQ FORVH FRQWDFW RWKHUJXLOGVWKH\RUGLQDULO\PLJKWMRLQWKH+XGDQE\OGDV ZLWKKLVVXSSOLHUVDQGNLQLQ'DOHDVGRPDQ\RI/DNH 1R ´+RXVH %XLOGHUVµ IRU FDUSHWHUV DQG WKDWFKHUV RU WRZQ·VVNiSDUVSDUWLFXODUO\WKRVHZKRZRUNZLWKSUHFLRXV RQHRIWKHIRXUFRRSHUHGIUHDKLU7KHODWWHU³WKH%\GHQ PHWDOVVLQFHWKH'DOHIRONDUHUHQRZQHGIRUWKHLULQWULFDWH ERWWDQ 1R ´7XE )L[HUVµ WKH %\UODE\WODV 1R MHZHOU\ ´%DUUHOPDNHUVµ WKH 7XQQHFUDIWDV 1R ´7XQ %XLOG $IHZDUWLVDQVDUHEDVHGRXWVLGHRI/DNHWRZQ%HFDXVH HUVµ DQG WKH %\UHOE\OGDV 1R ´%DUUHOPDNHUVµ ³DUH RIILUHFRQFHUQVZLWKWKHJURXQGNLOQV DQGUDZPDWHULDO H[WUHPHO\SRZHUIXOEXWFRQVWDQWO\ELFNHULQJ$OORIWKHVH DYDLODELOLW\ WKH /DLVNiSDUDV1R ´3RWWHUVµ ZRUNVKRS JURXSV DUH RQ UHDVRQDEO\JRRG WHUPV ZLWK WKH :RGX DQG WKH7D\QHOZLUWDV1R ´%DVNHWPDNHUVµ HGIUHDKDU FUDIWDV DQG PRVW XVH WKH :RGXFUDIWDVKXLO IRU VRFLDO DUHFHQWHUHGLQ&RWVWRZVHYHUDOPLOHVRXWVLGHRI(VJDURWK IXQFWLRQV EXWWKHLUSURGXFWVDUHFRPPRQO\DYDLODEOHLQWKHSODWIRUP WRZQ7KHJODVVPDNLQJLQGXVWU\ZKLFKLVORFDWHGLQ'DOH KDVDFRXSOHRIVXSSOLHUVLQ/DNHWRZQ³WKH\GHDODOPRVW H[FOXVLYHO\LQZLQGRZSDQHV

32/,7,&6$1' 32:(5,17$ ,17(51$/32/,7,&6$1' 3(23/( 7+(0$(67$ 7KHTXRWLGLDQGXWLHVRIWKH0DHVWD 2GDJDYLDIRFXV RQ WKH PDMRU OLYHOLKRRG RI/DNHWRZQ³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eRWKZ\QWKH RVWOHURIWKH)ROFVWHDOODV2GDJDYLDDOVRILQDQFHVIHVWLYDOV DQGIHDVWVRQKDOLGHJDVDQGSUHVLGHVRYHUWKH/LWKH)DLU HDFK VXPPHU 0RVW LPSRUWDQWO\ WKH 0DHVWD KHDGV D WKUHHSHUVRQFRXQFLOZLWKWKH:HQGULKW%HDGDURI DQG WKH7RZQ&ULHU0DHWKHOJDU WKDWVHWWOHVDUJXPHQWVDQG SDVVHVMXGJHPHQWXSRQFULPLQDOV,QDVVHVVLQJWRUWVZKHUH YRWHVRIWKH WULR DUHUHTXLUHG WKH 0DHVWD·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

7+(72:1&5,(5 7KH7RZQ&ULHULVUHVSRQVLEOHIRUFRPPXQLFDWLQJWKH GHFLVLRQVRIWKH0DHVWDWRWKHWRZQVIRONRI/DNHWRZQ 7UDGLWLRQDOO\WKHUROHKDVEHHQILOOHGE\DEDUGWUDLQHGLQ 1RUWKURQ SXEOLF VSHDNLQJ DQG WKH OHJDO WUDGLWLRQV DQG RUDOKLVWRU\RIWKH/DNHIRON0DHWKHOJDUOLNHKLVSUHGH FHVVRUVZDVDSSRLQWHGWRWKHSRVLWLRQE\2GDJDYLDDIWHU WKHSUHYLRXV&ULHUKLVPHQWRUSHULVKHGLQWKH3ODJXH+H ZDVVXEVHTXHQWO\DSSURYHGE\WKH$WDQDWKUDLQLQDPDMRU LW\YRWH 7+($7$1$7+5$,1 &RPSRVHGRIDOOPDOH´FLWL]HQVLQJRRGVWDQGLQJµWKH VL]HRIWKH$WDQDWKUDLQYDULHVZLWKWKHSRSXODWLRQIOXFWXD WLRQVRIWKHUHVLGHQWVRI(VJDURWK6XSSRVHGO\FRPSRVHG RIURXJKO\WKHVDPHERG\RIWRZQVSHRSOHWKDWPDNHVXS /DNHWRZQ·VIDHUGWKH$WDQDWKUDLQ DFWXDOO\KDVDPXFK JUHDWHUWXUQRXWWKDQWKHPRQWKO\WUDLQLQJVHVVLRQVRIWKH OHY\7KHJURXSPHHWVRQDPRQWKO\EDVLVLQWKH7KUDLQKXLO DWWKHGDUNRIWKHPRRQEXWPD\DOVREHVXPPRQHGIRU VSHFLDO HPHUJHQF\ VHVVLRQV 'HFLVLRQV DUH PDGH E\ D VLPSOH PDMRULW\ YRWH DQG DUH RIWHQ UDXFRXV DIIDLUV³ PHPEHUVZLOOVWDQGRQ WDEOHVDQGEHQFKHVWRVKRXWWKHLU RSLQLRQVLQLPSDVVLRQHGVSHHFKHVZKLOHRWKHUVVWDPSDQG SRXQGWKHWDEOHVWRLQGLFDWHDSSURYDO

KfneZi`\i

0(5&+$17$1'&5$)7(')5($+,5 7KHHGIUHDKLUVWURQJO\LQIOXHQFHWKHSROLWLFDOGHFLVLRQV RIWKH0DHVWDZKRIUHTXHQWO\FRQVXOWVLQGLYLGXDO.U\QV RQ VSHFLILF SROLFLHV WKDW PLJKWDIIHFWSDUWLFXODUDVVRFLD WLRQV$WDQDWKUDLQPHPEHUVRIDSDUWLFXODUHGIUHDKDUKDYH EHHQ NQRZQ WR YRWH DV D EORFN DQG VLJQLILFDQWO\ DIIHFW WUDGLQJSROLFLHVLQWKHSDVW

$//,(62)/$.(72:1

'$/()2/. )RONWDOHV UHODWH WKH VWRU\ RIKRZ WKH 'DOHIRON ILUVW DQVZHUHGDSOHDIURPWKHEHVLHJHG/DNHIRONDW/RQGDURWK DQG KHOSHG WKDW FRPPXQLW\ WR GHIHDW WKHLU (DVWHUOLQJ DGYHUVDULHV FHQWXULHV DJR 6LQFH WKDW WLPH WKH\ KDYH PDLQWDLQHGDQXQZDYHULQJDOOLDQFHRIPXWXDOWUXVWDQGD KLJK YROXPH RI FRPPHUFH 6R PXFK VR LQ IDFW WKDW QHLWKHUJURXSKDVHYHUJRQHWRZDUZLWKRXWWKHPLOLWDU\ DVVLVWDQFHRIWKHRWKHU/DNHWRZQ·V0DHVWDWUDGLWLRQDOO\ YLVLWV'DOHIRUDZHHNGXULQJWKHDXWXPQRUZLQWHUDQGWKH 'DOHIRON·V7K\QLVKLVKRQRUHGJXHVWDW(VJDURWK·V/LWKH )DLU

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·V PHUFKDQW HGIUHDKLU .U\QV WR GLVFXVV WKH LQFUHDVLQJ SUREOHP RI EULJDQGDJHLQWKHFRXQWU\VLGHDQGDORQJWUDGHURXWHV

27+(5/$.()2/. (VJDURWK DOVR PDLQWDLQV FRUGLDO GLSORPDWLF UHODWLRQV ZLWKRWKHUIDLUVL]HG/DNHIRONFRPPXQLWLHVVXFKDV%XKU &KHS DQG %XKU 0DUGHQ GHVSLWH WKH GLVWLQFW VSLULW RI FRPSHWLWLRQ DQG IUHTXHQW GLVDJUHHPHQW RYHU WKH WROOV WKRVH FRPPXQLWLHV H[DFW RQ PHUFKDQW VKLSPHQWVVWRS SLQJHQURXWHWR/DNHWRZQ

QDQFHRIWKH)RUHVW5LYHUFKDQQHOKDYHPDGHWKHUHODWLRQ VKLSEHWZHHQWKHOHDGHUVRIWKH5DIWHOYHVDQGWKH/DNH IRONRQHRIWDFWIXO GLSORPDF\LQ WKHSDVW EXW2GDJDYLD DFNQRZOHGJHVWKHVXSSRUWRI2KWDUGXULQJWKH3ODJXHDQG KDV EHHQ YHU\ FRUGLDOVLQFH 2Q D OHVVRIILFLDO OHYHO WKH FRRSHUV DQG PHUFKDQWV RI(VJDURWK ZKR GHDO UHJXODUO\ ZLWKFHUWDLQ5DIWHOYHVKDYHIRUPHGIULHQGVKLSVZLWKWKH FKHHUIXO6LOYDQSHRSOH

'25:,1,21 /DNHWRZQKDVQRRIILFLDOWUDGHSROLF\RUIRUPDOGLSOR PDWLF FRQWDFW ZLWK WKH IDUDZD\ UHDOP RI 'RUZLQLRQ ,QVWHDG YDULRXV PHUFKDQWV SO\LQJ WKH WUDGH URXWHV EH WZHHQWKHWZRSODFHVFDQREWDLQFHUWDLQWROOLQGXOJHQFHV IRUVSHFLILFFDUJRHV

(1(0,(62)/$.(72:1 ($67(5/,1*6 (DVWHUOLQJVKDYHSHULRGLFDOO\UDLGHGRXWO\LQJ/DNHIRON FRPPXQLWLHV IRU FHQWXULHV EXW LQYDVLRQV WKDW DFWXDOO\ SHQHWUDWHIDUHQRXJKZHVWWRWKUHDWHQ/DNHWRZQDUHUDUH 7KHZDUOLNH6DJDWKZRUVKLSGDUNQHVVDQGFRQVHTXHQWO\ WKH /DNHIRONFRQVLGHUWKHPPRUDOO\ LQIHULRU )RUPRVW /DNHIRONWKHFORVHVWFRQWDFWWKH\HYHUKDYHZLWKWKHDOLHQ (DVWHUOLQJFXOWXUHLVWKURXJKEOLQGHGVXUYLYRUVRIUDLGVE\ WKHZDUORUG-\JDQRWKVR GLVWUXVWRIWKH6DJDWK LVZLGH VSUHDG

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

7+(&8/72)7+(/21*1,*+7 %HFDXVH LWLVDVHFUHWRUJDQL]DWLRQ ZKRVHH[LVWHQFHLV XQVXVSHFWHGE\WKHYDVWPDMRULW\RIWKHUHJLRQ·VLQKDELW DQWVWKH&XOWRIWKH/RQJ1LJKWZRXOGQHYHUEHDFNQRZO HGJHGDVDWKUHDWWR/DNHWRZQ·VVHFXULW\1HYHUWKHOHVV :22'(/9(6 WKH KHLQRXV GDUNQHVVZRUVKLSSLQJ JURXS LV D SULPDU\ 2IILFLDOUHODWLRQVZLWKWKH:RRGHOYHVDUHVWUDLQHGLQ LQVWLJDWRULQPDQ\RIWKH´FKDQFHµPLVIRUWXQHVWKDWEHIDOO WKH\HDUVIROORZLQJWKH3ODJXHIRUDOWKRXJK7KUDQGXLO·V PHPEHUV RIWKH)UHH 3HRSOHV LQ WKH DUHD7KH&XOWKDV IRONJDYHDVVLVWDQFHWRWKHVWDUYLQJ/DNHIRONODWHLQ7$ VSLHVLQPDQ\SODFHV+DHGWKHJURXS·VPDLQHQYR\DQG LWWRRN WZR\HDUVRIVXIIHULQJ DSHUVRQDO WULSE\ DVVDVVLQIUHTXHQWO\OHDYHVWKHLUUHWUHDWLQWKHZHVWHUQ,URQ 2GDJDYLD DQGWKHVXSSRUWRIWKH5DIWHOIYLOODJH OHDGHU +LOOVWRLQLWLDWHVRPHQHIDULRXVSORWRIWHQDWWKHELGGLQJ 2KWDU WR EULQJ LW DERXW )UHTXHQW VTXDEEOHV ZLWK WKH RIWKH1HFURPDQFHU GHVLJQHGWREULQJGHDWKDQGGHVWUXF 5DIWHOYHVRI&HOHEDQQRQRYHUWKHGUHGJLQJDQGPDLQWH WLRQWRLQQRFHQWIRONDQGIXUWKHUWKHHQGVRIHYLO

:$5&5$)7

UDWKHUWKDQRQHOHQJWK\VKLIWVSHQWHQWLUHO\RXWGRRUV2II GXW\JXDUGVSDUWLFXODUO\ZDUGHUVWKDWVHUYHDVSDUWRIWKH (VJDURWKPDLQWDLQVDIXOOWLPHWRZQJXDUGRU´GULKWHQµ %ULGJH *XDUG FDQ RIWHQ EH IRXQG UHOD[LQJ DW WKH ZKLFK VHUYHV D QXPEHURIIXQFWLRQV 7KH ZDUGHUV ZKR 9RGDJDUD]XQ VHUYH LQ WKH JXDUG DUH SURIHVVLRQDO VROGLHUV EXW WKH\ JHQHUDOO\DFWDVILUHPHQSROLFHPHQFXVWRPVDJHQWVDQG 7+(72:1/(9< ERG\JXDUGV7KH\DOVRKHOSWUDLQWKHPHQWKDWVHUYHLQWKH 6HUYLQJ WRJHWKHU DV WKH\ GR VROGLHUV GHYHORS FORVH WRZQOHY\(VJDURWK·V´EXKUIDLUGµ5DUHO\PXVWHUHGWKH ERQGVZLWKRQHDQRWKHU,QWLPHVRIZDUZKHQWKHOHY\ IDLUGFRQVWLWXWHV/DNHWRZQ·VHQWLUHDUP\ PXVWHUV WKH\ PDLQWDLQ WKLV XQLW FRKHVLRQ *XDUGV DQG OHY\PHQIXQFWLRQLQWKHVDPHZDUWLPHXQLWVSURYLGLQJ 7+(72:1*8$5' WKHOHVVH[SHULHQFHGVROGLHUVZLWKHIIHFWLYHJXLGDQFH 7KHWRZQJXDUGDVPDOOIRUFHRIVL[W\VROGLHUVSROLFHV $IWHUDPXVWHULQJRIWKHOHY\DWHQPDQPDUWLJ1R (VJDURWK&RPPDQGHGE\%HDGDURIWKH:HQGULKW1R ´:DU0DUFKµ LQFOXGHVDNQLJKWRUFXLUOWKUHHZDUGHUV ´*XDUGORUGµ WKH*XDUGLVVXEGLYLGHGLQWRILIWHHQIRXU DQGVL[IDLUGPHQ7KHXQLWRSHUDWHVXQGHUWKHFRPPDQG SHUVRQ PDUFDV 1R ´0DUFKHVµ (DFK PDUFK LV FRP RIWKH FXLUO +H UHOLHV RQ WKH ZDUGHUV WR NHHS WKHOHY\ SRVHG RIRQH VHDVRQHG FXLUO 1R ´.QLJKWµ DQG WKUHH VROGLHUV LQ OLQH D FORVH DQG SHUVRQDO VXSHUYLVLRQ WKDW EXKUGULKWDV1R´7RZQZDUGHUVµ 7KHFXLUODVVHUYHDV LQVXUHVPDUWLDOVWDELOLW\ PDUFKFRPPDQGHUV /$.(0$10,/,7$5<+,(5$5&+< $PDUFKVHUYHVDVDORFDOZDWFK,WPD\VWDQGJXDUGRU DFWDVDSDWURODQGRSHUDWHVRQDGXW\VFKHGXOHWKDWYDULHV 0LG7$ /DWH7$ DFFRUGLQJWRVHDVRQ /HDGHU :HQGUDXKW :HQGULKW .QLJKWV &XLUODV &XLUODV %ULGJH 7LPH /DNH *DWH :DUGHUV 'ULKWDV 'ULKWDV 6KLIWV :DWFK :DWFK :DWFK /HY\ )DLUG )DHUG 6SULQJ 'DZQ1RRQ $OOPDOHVDJH DQGROGHUDUHFRQVLGHUHGSDUWRIWKH WR 1RRQ'XVN WRZQIDLUG1R´/HY\µ 'HVSLWHWKLVXQLYHUVDOVHUYLFH ³ )DOO 'XVN'DZQ WKRXJK/DNHWRZQKDVQHYHUPXVWHUHGDIDLUGODUJHUWKDQ :LQWHU 'DZQ'XVN DERXWQLQHW\LQGLYLGXDOVIRUQRRQHLVFRPSHOOHGWRILJKW ³ 'XVN0LGQLWH XQOHVVSURSHUO\WUDLQHG)DLUGPHQDUHWDXJKWWRURZDQG ³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³LQFOXGLQJ FDUJR WROOV 2IIGXW\ FXLUODV FDUU\ WKH GXWLHV DQG ILQHV WKH WZR SLSHUV &KORGRPLU DQG &KORWDU³DVVLVW KLP JDWKHUHGGXULQJWKHLUVKLIWWRWKH*DROWXUZKHUHWKH\DUH 'LVFLSOLQHLVPRGHUDWHDPRQJWKHPHQEXWPRUDOHLVKLJK GHSRVLWHG LQ D VDIH LQ *XGULQF·V RIILFH VHH 6HFWLRQ $OWKRXJKWKH:HQGULKWDQGWKHFXLUODVOHDGWKHLUVROGLHUV IURPKRUVHEDFNWKHPDLQERG\RIWKHIRUFHLVLQIDQWU\ 7RZQSDWUROVDUHDGPLWWHGO\VSDUVH6RPHIRONFODLP ,QWLPHVRIZDU%HDGDURIZRUNVLQFORVHFRXQFLOZLWK WKDWWKHGULKWHQVSHQGVDQ LQRUGLQDWHO\ODUJHDPRXQWRI 'DOH·VPLOLWDU\OHDGHUV$IWHUDOOWKH/DNHIRONKDYHQHYHU WLPH SDWUROOLQJ WKH ZHDOWK\ DQG UHODWLYHO\ VDIH EHHQLQYROYHGLQDFDPSDLJQZLWKRXWWKHLUFORVHPLOLWDU\ 7KUDLQKXLOVWHGH7KLVFRQWULEXWHVWRWKHURZG\QDWXUHRI PLQGHG 'DOHPDQ DOOLHV $W WLPHV WKH /DNHPHQ DOVR OLIH LQ (VJDURWK (YHQLQJ SDWUROV HVSHFLDOO\ GXULQJ WKH PHHWZLWKWKHUHJLRQDO*UDPX]OHDGHUVEXWPRVWRIWKHVH ZLQWHUDUHPRUHDVHULHVRIVKRUWVDOOLHVIURPWKH*DROWXU FRQFODYHVLQYROYHGXW\DQGERXQGDU\DFFRUGV

Efik_dXe nXii`fi

$OWKRXJKWKH/DNHWRZQOHY\LV VNLOOHGDWZDWHUERUQHWUDYHO'DOH GHSOR\VDPRXQWHGIDLUGWKDWJHQ HUDOO\PRYHVRYHUODQG2QFHLQ EDWWOHWKHGLVWLQFWLRQVEHWZHHQ WKHWZRIRUFHVEOXUIRUWKHEXON RIWKH 'DOHPHQ GLVPRXQW WR ILJKW7\SLFDOWDFWLFVLQYROYHD OLQHRUZHGJHEDWWOHILHOGXQLW SURWHFWHGE\DQRWKHUXQLWRI DUFKHUVRQRQHIODQNDQGSHU KDSV D FDYDOU\ XQLW FRP SRVHGRI'DOH·VZDUULRUHOLWH RQ WKH RWKHU %HDGDURIDW WDFKHV KLPVHOI WR WKH PDUFWLJ OHG E\ *XWKZLQ DQG FRQWDLQLQJ WKH WZR GULOOSLSHUVDQGSHUVRQ DOO\ OHDGV DQ\ FKDUJH 7KLV1RUWKURQKDELWLV LQ VWDUN FRQWUDVW WR XVXDO*RQGRULDQEDWWOH WDFWLFVZKHUHDQDUP\ LV FRPPDQGHG IURP WKH UHODWLYH VDIHW\ RI LWVUHDU )RUWXQDWHO\ PRVW IUHTXHQW PXVWHUFDOOV SHUWDLQ WR RXWEUHDNV RI ILUH³/DNHWRZQ·V PRVW IRUPLGDEOH IRH :DULVUDUHLQDQGDURXQG (VJDURWK DQG WKH XSSHU 1DQ &HOGXLQ 0LUNZRRG EDUVDQ\LQFXUVLRQVIURPWKH ZHVWDQGWKHEOHDNODQGVWR WKHQRUWKLPSHGHDQ\VLJQLIL FDQWPXVWHULQJVRUFDPSDLJQV WKHUH$WWDFNVDORQJWKHPRUH YXOQHUDEOHDYHQXHVLQWKHHDVW DQG VRXWK DUH PRUH FRP PRQ EXW VWLOO H[FHHGLQJO\ LQIUHTXHQW 2WKHU 1RUWK PDQJURXSVDEVRUEPRVWRI WKHSUHVVXUHIURPERWKUDLG HUVDQGLQYDGHUV2QO\WKUHH RIILIW\6DJDWK WULEHV URDP DQ\ZKHUHQHDU/DNHWRZQ DQG HQFRXQWHUV ZLWK WKH (DVWHUOLQJV³WKH /DNH PHQ·VPRVWQRWDEOHDGYHU VDULHV³JHQHUDOO\IRFXVRQ WUDGH

(6*$527+ 7KLV VHFWLRQ GHVFULEHV WKH ORFDWLRQV GHSLFWHG RQ WKH FRORUWRZQPDSIRXQGRQWKHDFFRPSDQ\LQJLQVHUW0RVW RIWKHQDPHVDQGODEHOVDSSHDULQ)RUDGDQLQWKHWRQJXH RIWKHORFDO 1RUWKPHQ RI5KRYDQLRQ

',675,&76 7KHSHRSOHRI(VJDURWKUHFRJQL]HDQGUHIHUWRILIWHHQ URXJKO\GHILQHG WRZQGLVWULFWV (DFK QHLJKERUKRRG GH VFULEHGKHUHLVLGHQWLILHGE\DFDSLWDOOHWWHURQWKHWRZQ PDS'LVWLQFWEXLOGLQJVW\OHVDQGYDU\LQJFRPPXQLWLHVRI DUWLVDQVDQGPHUFKDQWVGHILQHWKHVHXQLTXHTXDUWHUV $ $OGEXKU%UXFNDJHDUG 1R ´2OG 7RZQ%ULGJH &RXUWµ -XVWRYHUWKH/DQGEULGJHWKLVDUHDLVKRPHWR PHUFKDQWV DQG DUWLVDQV RIDOO YDULHWLHV %XVLQHVVHV IRU ODQG WUDYHOOHUVDUHHVSHFLDOO\FRPPRQWKH9RGDJDUD]XQ 2GDOLQGD·VZDLQZULJKWZRUNVKRS\DUGDQGWKHFRPPHU FLDO VWDEOH UXQ E\*XGHOLQGD·VKXVEDQG DUH H[DPSOHVRI WKLV 0DQ\ ROGHU WZRVWRU\ EXLOGLQJV ZLWK HVSHFLDOO\ IODPER\DQWFDUYLQJVOLQHWKHEURDGVWUHHWV %+HULEXKU 1R ´+DUERU >7RZQ@µ 1DPHG IRUWKH KDUERU H[WHQGLQJRIIWKH VRXWKHUQ :RHWVDO WKLV DUHD LV SRSXODWHGSULPDULO\E\DUWLVDQVPDQ\RIZKRPVHUYHWKH )DLUGZDHSDQVWRUW 1R ´)DLUG %DUUDFNVµ $ IHZ )LVKHUIRONIDPLOLHVDOVROLYHKHUHDORQJVLGHWKH:RHWJHODG & :RHWVDO 1R ´0DUNHW 3RROµ 7KH VRXWKHUQPRVW SRROLVXVHGHVSHFLDOO\E\WKHGULKWHQWKH)LVKHUIRONDQG PHUFKDQWVKLSV DQG LV ULQJHG E\ ZDUHKRXVHV PDULWLPH VXSSOLHUVDQGWKH)LVKPRQJHU·V0DUNHW '9LVFHUVWHGH1R´)LVKHUIRON·V4XDUWHUµ RU9LVFZLF 1R´)LVKPRQJHU·V0DUNHWµ &RQWDLQVWKHEDUUHOURRIHG VLQJOHVWRU\FRWWDJHVRIPRVWRIWKHILVKLQJFRPPXQLW\DV ZHOODVWKHKDOORIWKHZ\UGZRPDQ%RJDWXQJWKH'\GDSSHU 1R ´:DWHUELUG*UHEHµ WDYHUQDQGWKH9LVFHUDVKXLO 1R´)LVKHUIRON·V+DOOµ 7KHVWHQFKRIWKH9LVFZLFDQG )ROJDU·VWDQQHU\LVHYHUSUHVHQW (:RHWJHODG1R´&KDQQHOµ $FDQDOWKDWFXWVWKURXJK WKH FHQWHU RI(VJDURWK 1HDU WKH QRUWKHUQ HQG RIWKH SODWIRUPWKHUHLVDVOLJKWVRXWKHUQIORZLQJFXUUHQWLQWKH :RHWJHODG2YHUDOOVHYHQDUFKHGUDLOHGEULGJHVVSDQ WKH ZDWHUZD\ ):DHU~WKRU1R´:DUHKRXVH'LVWULFWµ $FRPPHU FLDO VHFWRU RI/DNHWRZQ RFFXSLHG E\ HLJKW ODUJH ZDUH KRXVHV *0DQJWKRU1R´7UDGH4XDUWHUµ $ZHOONHSWDUHDRI UHVLGHQFHVDQGPHUFKDQWRIILFHV$VLGHIURPVHYHUDOFRR SHULQJ\DUGV HJ *XWKODI·V IHZFUDIWVIRONUHVLGHKHUH ,QOHWV IRU XQORDGLQJ RQ WKH HDVWHUQ VLGH RIWKH WRZQ SODWIRUP DUH LQ XVH WKURXJKRXW WKH GD\ 7UDGHUV DQG FDSWDLQV FDQUHWLUHWRWKH ZHOOWRGR 0DQJHUKXLOWDYHUQ 1R´7UDGHU·V+DOOµ WRGLVFXVVEXVLQHVVRYHUDGULQNRU WDNHDURRPIRURYHUQLJKWVWD\VLQWKHH[SHQVLYHGHOX[H +HDKJDVWKXLO1R ´/RIW\*XHVWKDOOµ 7KHVWHHSWZR DQG WKUHHVWRU\VWUXFWXUHV KHUH DUH EXLOWWR DOORZPD[L PXPVWUHHWVSDFHIRUWKHXQORDGLQJDQGWUDQVSRUWLQJRI VKLSSLQJPHUFKDQGLVH

+:RHWVDO7KHQRUWKHUQ0DUNHW0pDKLVERUGHUHGE\ 7KHIROORZLQJQDPHVFRUUHVSRQGWR(VJDURWK·V PRVW VHYHUDOEHDXWLIXO+HDKKXLVDQ1R´*UHDWKRXVHVµ WKH IDPLOLDUVWUHHWV PDJQLILFHQW7KUDLQKXLO 1R ´&RXQFLO +DOOµ DQG WKH %DHFVWUDHWDQ´%DFN6WUHHWµ *DOZD1R ´*DOORZVµ 'XULQJ WKHGD\ LW LV XVHG E\ %RHGJHDUG´%RDWZRUNHU·V@RU:LGRZ·V/DQHµ QLJKWOLIH RI WKLV VHFWLRQ RI WRZQ LV LQIDPRXV 0DQ\ :XUPVZHJ´'UDJRQ·V:DNHµ EXLOGLQJVDUHUDWKHUUXQGRZQDQGWKHDUFKLWHFWXUHIURP VWUXFWXUHWRVWUXFWXUHYDULHVWUHPHGRXVO\ %8,/',1*6 2 7KRUELYDJ 7KH VRXWKHUQ 7KRUELYDJ ERUGHUV WKH $JDLQWKHQXPEHUVKHUHFRUUHVSRQGWRWKHIRXUFRORU ZHVWHUQHGJHRIWKHVRXWKHUQ0DUNHW3RRODQGFRQWDLQV WRZQPDSRQWKHLQVHUW PRVWO\PDULWLPHUHODWHGEXVLQHVVHV%XLOGLQJVW\OHVHFKR %\UHOYHU 1R ´%DUUHOZHLUµ $ URSH EDUULHU DW WKH WKRVHHOVHZKHUHLQWKH$OGEXKU VKLQJOHGHOWDRIWKH)RUHVW5LYHUSODFHGWKHUHWRDVVLVWWKH ODQGLQJRIEDUUHOUDIWVWUDYHOOLQJIURPWKH5DIWHOIYLOODJH 675((76 RI&HOHEDQQRQ /DNHWRZQ·V VWUHHWV DUH QDUURZ EXW UHODWLYHO\ UHIXVH +ODHVWFDPRO 1R ´*XDUG +RXVH7ROO +RXVHµ IUHH 7KLV LV LQ SDUW GXH WR WKH HIIRUWV RIWKH JDUEDJH 0DQQHGE\D IRUFHRIWZR FXLUODVDQGVL[GULKWHQ ZKR FROOHFWRU(DUP+UHROID1R´(DUPWKH/HSHUµ DQGLQ FROOHFWWROOVIURPHQWHULQJPHUFKDQWV6HH6HFWLRQ SDUW EHFDXVH UXEELVK RIWHQ ILQGV LWV ZD\ LQWR WKH/RQJ IRUDGHWDLOHGGHVFULSWLRQ /DNH :RRGHQ ODWWLFHGUDLQV UXQ EHVLGH RU GRZQ WKH 9UDFRWK DQG *ULVWOXQJ·V &KDUQHO +RXVH +RPH FHQWHU RI VHOHFW WKRURXJKIDUHV 7KH\ FROOHFW GUDLQDJH EXVLQHVVKDOOIRUWKHGHDGFROOHFWRUVJUDYHGLJJHUV HVSHFLDOO\UDLQDQGVQRZ:LVHSHGHVWULDQVDYRLGVWHSSLQJ eRWKZ\Q·V+DOO+RPHWRWKHRVWOHULQFKDUJHRIWKH XSRQWKHPIRUWKH\RFFDVLRQDOO\JLYHZD\ WRZQVWDEOHV

DXib\kjf] CXb\$kfne

)ROFVWHDOODV 1R ´7RZQ 6WDEOHVµ 6HH 6HFWLRQ IRUDGHWDLOHGGHVFULSWLRQ 7KH 9RGDJDUD]XQ 1R ´+RXVH RI9RGDJDµ 7KH SURPLQHQWLQQ6HH6HFWLRQ IRUDGHWDLOHGGHVFULS WLRQ 6SHOOVWDOS1R´3XEOLF$QQRXQFHPHQW6WDJHµ 8VHG E\0DHWKHOJDUDQGRWKHUVIRUSXEOLFDQQRXQFHPHQWVDQG E\ EXVNHUV DQG RWKHU VWUHHW SHUIRUPHU ZRUNLQJ WUDIILF DORQJWKH/DQGEULGJH

)UHDPXQG·V+HDKKXLV1R´*UHDWKRXVHµ %HRUWQRY·V +DOO %HDGDURI·V +HDKKXLV 6WHDOO 1R6WDEOHµ &RPPHUFLDO DQG UXQ E\ *XGHOLQGD·VVSRXVH 6ZHUWOLQJ·V&RRSHU\ +HULEXKU1R ´+DUERUµ 8VHGE\WKHGULKWHQWR GRFNWKHLUPHUQDFDV )DLUGZDHSDQVWRUW1R´)DLUG%DUUDFNVµ +RXVHV WKH PDMRULW\ RIWKH WRZQ GULKWHQ LQFOXGLQJ eRGRULF *DHUYLFFDDOVRKDVDKHDOHU·VZDUGKHUHZKHUHVKHWUHDWV ERWKVROGLHUVDQGFLWL]HQV )ROJDU·V 7DQQHU\ %XLOW DW WKH OHHZDUG H[WUHPH RI (VJDURWK EHFDXVH RIWKH XQDYRLGDEOH RGRUV DVVRFLDWHG ZLWKVXFKDEXVLQHVV 9LVFZLF 1R ´)LVKPRQJHU·V 0DUNHWµ )LVKHUIRON SHGGOHWKHLUFDWFKKHUHGDLO\ 7KH'\GDSSHU1R´:DWHUELUG*UHEHµ $WDYHUQ SRSXODUZLWKGRFNZRUNHUVDQGWKH)LVKHUIRON$OVRDQLQQ ZLWKVHYHUDOFRPPRQURRPVDYDLODEOHIRURYHUQLJKWERDUG HUV 9LVFHUDVKXLO1R´)LVKHUIRON·V+DOOµ $FRPPX QLW\FHQWHUXVHGIRUJURXSDFWLYLWLHVDQGVWRUDJH %RJDWXQJ·V +DOO 7KH UHFOXVLYH Z\UGZRPDQ UDUHO\ OHDYHVKHUKRPHEXWUHJXODUO\UHFHLYHVIRUWXQHVHHNHUV +\JHJULP·V +HDKKXLV +RPH WR WKH )LVKHUIRON SDWULDUFKDQGVHYHUDORIKLVQXPHURXVSURJHQ\ :DHUKXLODQ1R´:DUHKRXVHVµ 6HH6HFWLRQ IRUDGHWDLOHGGHVFULSWLRQ 9LVFQDN\Q 1R ´&XOW RIWKH )LVKµ 7HPSOH $ FHQWHURIZRUVKLSUXQE\6KLQULQF $HVGZLF6KDPEHOV 1R ´(DVW 0DUNHW%XWFKHU·V 0DUNHWµ %XWFKHUVDQGRWKHUIRRGPHUFKDQWVNHHSVKRS KHUHRQPDUNHWGD\V 0HURYHFK·V&RRSHU\ $JLOXOI·V +HDKKXLV 7KH PHUFKDQW KDV D EXVLQHVV RIILFHRQWKHJURXQGIORRU 7KH0DQJHUKXLO$WDYHUQSRSXODUZLWKWKHWUDGHUV DQG VKLS FDSWDLQV LQ WKH DUHD LWV KLJK SULFHV IRUFH GRFNZRUNHUV WR WUHN GRZQ WR WKH '\GDSSHU RU DFURVV WRZQWRWKH:HVWRUIIRUDGULQN 7KH+HDKJDVWKXLO1R´/RIW\*XHVWKDOOµ $KLJK SULFHG DQG ZHOONHSW LQQ IDYRUHG E\ WUDGHUV DQG VRPH :RRGHOYHV RWKHUV RIWKH )LUVWERUQ SUHIHU WKH PRUH IHVWLYH9RGDJDUD]XQ *DOZD1R´*DOORZVµ 6WDLUVOHDGXSWRDSODWIRUP HTXLSSHGZLWKDJLEEHWRYHUKDQJLQJWKHQRUWKHUQ:RHWVDO 2QO\WKHPRVWVHULRXVFULPLQDOVHQGXSKHUH7KHYLFLQLW\ LVUHSXWHGWREHKDXQWHGVHH6HFWLRQ :RIIXQJ·V )ODW 7KH MHVWHU OLYHV RYHU D PHUFKDQW·V RIILFHRQWKH ILUVW IORRU

7KUDLQKXLO0DHVWDKXLO 1R ´&RXQFLO +DOO 0DVWHU·V +DOOµ +DUERULQJ WRZQ IXQFWLRQV DQG IHDVWV WKHKDOODOVRKRXVHVWKH0DHVWD·VRIILFH6RPHWLPHVLWLV UHQWHGRXWIRUHGIUHDKDUFHOHEUDWLRQV6HH6HFWLRQ IRUDGHWDLOHGGHVFULSWLRQ :RGXFUDIWDVKXLO1R´:RRGZRUNHUV·+DOOµ 2QH RIWKHPRVWHODERUDWHO\FDUYHGVWUXFWXUHVLQWRZQ8VHG IRUVRFLDOIXQFWLRQVWKHEXLOGLQJLVIUHTXHQWO\UHQWHGRXW WRHGIUHDKDUZLWK QRVRFLDOKDOORIWKHLURZQ /LQORFF 0DHOD·V +HDKKXLV&RLQVPLWK\ 6HH6HF WLRQ IRUDPRUHGHWDLOHGGHVFULSWLRQ 0DHWKHOJDU·V+HDKKXLV 7KDOeROVHQ·V+HDKKXLV 5LJXQWKD·V +HDKKXLV2IILFH 6HH 6HFWLRQ IRUDPRUHGHWDLOHGGHVFULSWLRQ *DROWXU1R´-DLO7RZHUµ &RQWDLQVWKHEDUUDFNV IRU VRPH ILIWHHQ GULKWHQ PHPEHUV DV ZHOO DV *XGULQF·V RIILFH6HH6HFWLRQIRUDPRUHGHWDLOHGGHVFULSWLRQ 9HEEDVKXLO1R´:HDYHUV·+DOOµ 8VHGIRUVRFLDO IXQFWLRQVDQGVWRUDJH &ODGKZ\UNHQGDVKXLO 1R ´&ORWKZRUNHUV· +DOOµ 8VHGIRUVRFLDOIXQFWLRQVDQGVWRUDJH +XUP :DWROHU·V 7XU 1R ´7RZHUµ :LWK D EDOFRQLHGWKLUGVWRU\DYLDU\ 8QQ·V+DOO7DLORUVKRS *RVKDIRF·V &DUSHQWU\ 6KRS 2IILFH8VXDOO\WKHSURSULHWRULVRXW RQDVVLJQPHQWEXLOGLQJRUUHSDLULQJ VWUXFWXUHV +HUHZXOI·V &ORWK'\LQJ:RUN VKRS6HH6HFWLRQ IRUDPRUH GHWDLOHGGHVFULSWLRQ %XUQWRXW$UHD'DPDJHGE\ILUH GXULQJWKH3ODJXH5LRWVRI7$ %HRWWD :HEED·V +HDKKXLV :RUNVKRS 7KH ZHVW ZLQJ RI WKH EXLOGLQJKRXVHVWKHZHDYHU·VVKRS 2GDJDYLD·V+HDKKXLV6HH6HF WLRQ IRU D PRUH GHWDLOHG GH VFULSWLRQ $QWKDULV·+DOO2IILFH7KHWUDGHU LVRIWHQDZD\IURPWKLVKLVWUDGLWLRQDO 1RUWKURQKDOOKRPH 'HYHORSLQJ$UHD 'HVWUR\HGE\ ILUHGXULQJWKH3ODJXH5LRWVRI WKLV DUHD LV EHLQJUHVWRUHG DQG QHZ EXLOGLQJDUHEHLQJHUHFWHG 9RUPHQULF·V+HDKKXLV6HH6HF WLRQ IRU D PRUH GHWDLOHG GH VFULSWLRQ .\QRGHQ·V+HDKKXLV 7KH :HJIDUDV 7DIHQ 1R ´:D\IDUHU·V ,QQµ 0HGLXP SULFHV DQGTXDOLW\

%RHGE\OJDV:RUNVKRS1R´%RDWZULJKWV·:RUN VKRSµ 2SHQWRWKHODNHVXUIDFHWRDOORZWKHFRQVWUXF WLRQRIVKLSV %RHGE\OJDV :DHUKXLO %RHGE\OJDV:RUNVKRS %RHGE\OJDV ,QOHW $ VPDOO LQOHWXVHG WR FRQVWUXFW VKLSV %RHGE\OJDV:DHUKXLO+LOGHJULSDOLYHVLQDQDSDUW PHQWLQWKHQRUWKZHVWFRUQHURIWKHEXLOGLQJVHH6HFWLRQ 7KH (UDQQXQ 7DIHQ 61R ´6XQVHW ,QQµ 6HH 6HFWLRQ IRUDPRUHGHWDLOHGGHVFULSWLRQ )UHGHJRQGH·V&DQGOHVKRS6HH6HFWLRQ IRUD PRUHGHWDLOHGGHVFULSWLRQ +ROWLQJ·V0DVRQ·V6KRS

9l`c[`e^j f]CXb\$kfne

58

63. Scopstalp (No. “Bard’s Stage”). Used by street performers, especially on market days. 64. Eormenlic’s Weaponsmithy. See Section 12.4.2 for a more detailed description. 65. Sigebeorta’s Coopery. 66. Gnorn’s Instrument Shop. 67. Guthláf’s Coopery. 68. Saewulf’s Maritime Supplies. 69. Hemming’s Cobblery. See Section 12.4.1 for a more detailed description. 70. Vulf-plaech (No. “Vulf’s Place”). A popular gambling hall. See Section 12.2.4 for a more detailed description. 71. Vaetstorc Tafen (No. “Fat Stork Inn”). A flophouse with numerous chimneys, low prices, terrible food, rampant pilfery, and very healthy vermin. 72. Gúma’s (No. “Warrior’s; Hero’s”). A tavern associated with the Witehuil. Affectionately called the Stig (No. “Sty”). See Section 12.2.3 for a more detailed description. 73. The Witehuil(No. “Amphitheatre”; “Torture Hall”). An outdoor gambling arena also owned by Gúma where bare-knuckle fights are held most evenings during fair weather. See Section 12.2.3 for a more detailed description. 74. Gowyna’s (No. “Daisy’s”). A popular brothel run by Gowyna, aka “Westmilce.” 75. Rinel’s Sailmaking Workshop. 76. Flota’s Ropemaking Workshop. 77. Westborghuis (No. “West Pawnshop or Loanhouse”). A pawnshop whose proprietor also provides bail-bonds, primarily for sailors and mercenaries who have gambled and drunk away their savings and wound up on the wrong side of the law. A sidelight and consequence of the loansharking is a brisk trade in wealli (No. “Debt-slaves”). 78. The Groghuis (No. “Grog House”). A tavern which caters especially to the “River Rats” who work the Celduin shipping route. See Section 12.2.6 for a more detailed description. 79. The Niunpinnas (No. “Ninepins”). A small but popular gambling hall. See Section 12.2.5 for a more detailed description. 80. The Séolforn Calc (No. “Silver Horse-shoe”). A rough mercenary watering hole famed for its homebrewed ale, which is called “Nog.” 81. Odalinda’s Wainwright Shop/Yard.

12.0 BUILDINGS OF NOTE Without exception, buildings in Esgaroth are constructed of wood, since even the stout tree piles of the platform-town can only support a certain amount of weight. Two types predominate: the more common halftimbered structures with wooden beam frameworks and wattle-and-daub filling; and the less decorative plankbuilt structures where vertical boards are joined at their edges with mortice and tenon joints. Because of the greater security they provide, plank-built structures are more commonly used for warehouses and buildings along the lake shore. Streets in Lake-town tend to be narrow, and it is normal for buildings to have small, often fenced, yards containing a shed, a privy, and several small animal pens behind them. Barrels are positioned at the corners of buildings to catch rainwater for drinking and cooking. Most structures are just one or two stories, but have steeply pitched thatch (or, less frequently, slate-shingle) roofs with roomy lofts. Often, roofs are hipped at their gabled ends and convexly curved. These are called byrelhrov (No. “Barrel Roofs”) and provide even more spacious lofts. Eaves are always alive with nesting birds—for example, the semi-intelligent storcs building their large twig homes atop the chimneys of the town which are unique to Esgaroth. A double floor on each building’s first story provides insulation against the chilly winter winds which whip across the water’s surface beneath the platform, but also creates a haven for vermin. Small fishing cats, mostly imported from Dorwinion, have become a common means of eradicating pests in the wake of the Plague. Virtually all the inhabitants of Lake-town are either fisherfolk, craft artisans, or merchants, and many live in buildings that incorporate first floor shops with spartan upper floor living flats. It is not unusual for successful craftspeople to rent out one- or two-room flats above their shop with access by an external staircase, but it is just as common for landlords to let individual rooms in their own living quarters (“Bedsits”), as would normally be done with an apprentice. In these instances, the lessor shares common space and meals with the tenants. Fire remains an imminent danger in Esgaroth; Atanathrain regulations require masonry chimneys, generally built with limestone shipped from Dale, for almost all buildings. A few edifices are like more traditional Northron halls in that they have a firepit of thick, stonelined clay and a louvre at the peak of the roof instead.

([WHUQDOGRRUVPD\KDYHVLPSOHGURSODWFKHV RUZRRGHQGUDZEDUVWKDWVOLGHRXWRIDQDGMD FHQW MDPE WR SUHYHQW LOOLFLW HQWU\ GXULQJ WKH QLJKWPDQ\DUHGLYLGHGKRUL]RQWDOO\D´'XWFK GRRUµ VR WKDW EXVLQHVV WUDQVDFWLRQV PD\ EH FRQGXFWHG WKURXJK WKHP ZLWK FXVWRPHUV RQ WKHVWUHHW$FWXDOVKRSVZLOOKDQJZRRGHQVLJQV RYHUWKHLU HQWULHV FDUYHG DQGSDLQWHGZLWK D V\PERORIWKHDUWLVDQ·VRUPHUFKDQW·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

$'0,1,675$7,9($1' *29(510(17 %8,/',1*6 ,QNHHSLQJZLWKWKHRSHQQDWXUHRIWUDGHDQGJRYHUQ PHQWLQ(VJDURWKWKHUHDUHUHODWLYHO\IHZEXLOGLQJVZLWK DQRIILFLDOIXQFWLRQ LQWKHWRZQ³WKHWKUHHPDLQH[FHS WLRQVDUHWKH0DHVWDKXLOWKHWROOKRXVHDQGWKHMDLOWRZHU

0$(67$+8,/257+5$,1+8,/ 7KH0DHVWDKXLO1R´0DVWHU·V+DOOµ RUPRUHFRP PRQO\ WKH 7KUDLQKXLO 1R ´&RXQFLO +DOOµ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

0DQ\RIWKHOD\VIRFXVRQSDVWKHURHVLQYROYHGLQVRPH OHJHQGDU\SK\VLFDOIHDWRUFRQWHVWRIZLW2QHIDYRULWHLV WKHWDOHRIRULJLQ³KRZWKHKDOH)ULWKXJDU1R´3HDFH PDNHUµ ILUVW OHG KLV KHDUW\ SHRSOH DFURVV WKH 0LVW\ 0RXQWDLQVFHQWXULHVDJRWRWKHVKRUHVRIWKH/RQJ/DNH DQGZRQKLVIRONWKHULJKWWRVHWWOHDORQJVLGHWKHZDWHU+H FKDOOHQJHGWKHUHVLGHQW6WDQHRWHQ1R´6WRQH*LDQWµ WRDURFNWKURZLQJPDWFKDQGWKHQSUHYDLOHGE\KXUOLQJD WKUXVKZKRIOHZWKHOHQJWKRIWKHODNH LQVWHDGRIDVWRQH $QRWKHULVWKHWDOHRIVWRXWKHDUWHG&HDZOLQ1R´3ODLW %DVNHWµ ZKR HVFDSHG IURP D VLHJH RI/RQGDURWK E\ FRPPDQGLQJDVWRUNWRFDUU\KHUDZD\LQDEDVNHWWR'DOH ZKHUHVKHHQOLVWHGDLGVXPPRQHGDIDLUG DQGUHWXUQHG OHDGLQJDFRPELQHGDUP\RI'DOHIRONDQGUXUDO/DNHIRON WRURXWHKHUDGYHUVDULHVDQGIUHHKHUKRPH6WLOODQRWKHU WHOOVRI2VODF1R´/DNH+HURµ ZKRVDYHG(VJDURWKE\ FRPPDQGLQJ WKH WHUULEOH 6pDKPDWKD 1R ´/DNH 6HU SHQWµ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

K_iX`e_l`c

?cX\jkZXdfc

WKH8VKDSHGKLJKWDEOHSURYLGHVVHDWLQJIRUWKH0DHVWD WKH :HQGULKW DQG WZHQW\WKUHH RWKHU LPSRUWDQW WRZQ IXQFWLRQDULHV'LUHFWO\EHKLQGWKHKLJKWDEOHKDQJVDEOXH WDSHVWU\ZLWKDVW\OL]HGLPDJHRI(VJDURWKRQLWWKHWRZQ·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·VSHDNRXWVLGHILQHO\FDUYHGWR 0DHVWD·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·V LWV KLVWRU\ DQG JHQHULF ODNH DQG ULYHU VKLSSLQJ VFHQHV RIILFHQH[WGRRU EXW ZLWK VHYHUDO QLFHFKDLUVFXVKLRQHG KLJKOLJKW WKH ZDOOV 7KH ORQJ WDEOHV DQG EHQFKHV DUH ZLWKWKLFNIXUV$URFNLQJFKDLURIZLOORZRRGDQGZRYHQ XQUHPDUNDEOH H[FHSW IRU WKHLU VXSHULRU DUWLVDQVKLS DQG &RWVWRZ UHHGV ZLOO FDVW D OHYHO 6OHHS VSHOO RQ DQ\ WKHLUGXUDELOLW\8SRQHVWHSDWWKHHDVWHUQHQGRIWKHKDOO RFFXSDQWZKRURFNVLQLWIRUPRUHWKDQWHQPLQXWHV

7KH0DHVWDKXLOVHUYHVPDQ\IXQFWLRQV0HHWLQJVRIWKH $WDQDWKUDLQ DUH KHOG KHUH D ZHHN DIWHU WKH PRQWKO\ PDUNHWVDQG2GDJDYLDMXGJHVFULPLQDOVDQGVHWWOHVPDU NHWGD\GLVSXWHVIURPKLVVHDWDWWKHKLJKWDEOHKLVUHJXODU RIILFHLVDOVRLQWKHEXLOGLQJ ,IDQLQYDGHUZHUHDEOHWR HQWHUWKHWRZQ DWWLPHRIZDUWKLVHGLILFH ZRXOGOLNHO\ VHUYH DV D UHIXJH IRU WRZQVSHRSOH GXULQJ WKH UHFHQW 3ODJXH LW ZDV XVHG DV D PDNHVKLIW KRVSLWDO IRU WKH FRXQWOHVVLOO)HDVWVDUHKHOGKHUHRQKROLGD\VDQGDWWKH HQGRIFHUWDLQPDMRUPDUNHWGD\V³WKH0DLQ+DOOLQVLGH ZLOO VHDW GLQHUV FRPIRUWDEO\ 8SRQ RFFDVLRQ WKH 7KUDLQKXLOPD\EHOHWWRDSDUWLFXODUO\SURPLQHQWHGIUHDKDU KROGLQJDSDUW\

+/$(67&$02/

*DWHV &DQ EH EDUUHG IURP WKH LQVLGH ZLWK D VWRXW WLPEHU,QSHDFHIXOWLPHVWKHWZR ZLGHJDWHVDUHOHIW $WWKHVKRUHHQGRIWKHVLQJOHEULGJHDFFHVVLQJ(VJDURWK RSHQGXULQJGD\OLJKWKRXUV WKH+ODHVWFDPRO1R´7ROO+RXVHµ DUHODWLYHO\VPDOO SODQNEXLOWEXLOGLQJZLWKVODWHVKLQJOHVERUGHUHGE\D

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´-DLO7RZHUµ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·V2IILFH7KHFXLUOLVSUHVHQWKHUHGXULQJWKH DJRRGYLHZRIWKHWUDFNUXQQLQJDORQJWKHZHVWHUQVKRUH GD\7KHURRPLVDOVRXVHGWRLQWHUURJDWHSULVRQHUVDQGWR VWRUHWKHSRVVHVVLRQVRIFDSWLYHV RIWKH/RQJ/DNH

?cX\jkZXdfc

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

&(17(562) (17(57$,10(17 ,1167$9(516$1' *$0%/,1*+$//6

>Xfckli# ^ifle[]cffi

>Xfckli# lgg\i]cffij

7KHUHDUHVL[LQQVLQ(VJDURWKDQGQXPHURXVWDYHUQV DQG SXEOLF KRXVHV 7KH LQQV LQFOXGH WKH SUHHPLQHQW 9RGDJDUD]XQWKHVHHG\[HQRSKRELF(UDQQXQ7DIHQWKH '\GDSSHU1R ´:DWHUELUG*UHEHµ WDYHUQIUHTXHQWHG E\ ILVKHUIRON ZLWK FRPPRQ EHGURRPV LQ DQ DGMDFHQW ZLQJWKH9DHWW6WRUF1R´)DW6WRUNµ DIORSKRXVHRQ WKH:HVWRUI1R´:HVWVLGHµ WKH:HJIDUDV1R´:D\ IDUHUVµ 7DIHQ LQ WKH QRUWKHUQ 7KRUELYDJ 1R ´%D\ 7RZQµ DQGWKHZHOOWRGR+HDKJDVWKXLO1R´/RIW\ *XHVWKDOOµ LQ WKH 0DQJWKRU1R ´7UDGHU·V 7RZQµ -RXUQH\LQJDUWLVDQVDUHRIWHQWDNHQLQDVKRXVHJXHVWVE\ IHOORZ FUDIWVIRON DQG FDQ WKHUHE\ DYRLG SD\LQJ IRU DF FRPPRGDWLRQV *DPEOLQJKDOOVDQGEURWKHOVDUHFRQFHQWUDWHGRQWKH HGJHRIWRZQIDFLQJWKHVKRUHNQRZQDVWKH:HVWRUIRUWKH :HVWXZDHUIDQ1R´:HVWVLGHµ %\IDUWKHPRVWSRSX ODU JDPEOLQJ HVWDEOLVKPHQW LV WKH :LWHKXLO 1R *DRO+ROGLQJ&HOO0DQDFOHVRQWKHZDOOFDQEHXVHG ´$PSKLWKHDWUH7RUWXUH+DOOµ D\DUGHTXLSSHGZLWKD WRFKDLQXSSULVRQHUVEXWWKLVLVW\SLFDOO\RQO\GRQHWR ZRRGHQVWDJHDQGDPSKLWKHDWUHZKHUHEDUHNQXFNOHER[ SUHYHQWFDSWLYHVIURPILJKWLQJRUZKHQWKHFHOOLVYHU\IXOO LQJ PDWFKHV DQG RWKHU YLROHQW HYHQLQJ VSRUWLQJ HYHQWV :LQGRZVDUHKLJKXSRQWKHVWRXWZDOOVKDYHQRJODVVDQG SURYLGHSDWURQVZLWKDQRSSRUWXQLW\WREHW7KH:LWHKXLO DUHEDUUHGZLWKVWURQJLURQ7KHODWULQHLQWKHFRUQHUKDV RSHUDWHVLQFRQMXQFWLRQZLWKWKHWDYHUQQH[WGRRU*~PD·V LURQ EDUV DV ZHOO WR SUHYHQW HVFDSH EXW WKH LURQ KDV WRJHWKHUWKHWZRVHUYHDVDODUJH\DUGHGWDYHUQZKHQWKH EHFRPHVRFRUURGHGE\XULQHWKDWLWFRXOGEHEURNHQE\ ZHDWKHULVWRRFROGWRKROGHYHQWVRXWGRRUV/RFDOVUHIHU D VLQJOH LQGLYLGXDO ZLWK D SRZHUIXO VWRPS ([WUHPHO\ WRWKHSRRUO\NHSWEDUDV´WKH6WLJµ1R´6W\µ LWVRZQHU +DUGXVH6WERQXV 7KHGRRUKDVDQ LURQEDUUHG *~PD 1R ´:DUULRU +HURµ ZKR DOVR RZQV WKH ZLQGRZDQGDORFNWKDWLV([WUHPHO\+DUG WRSLFN :LWHKXLOLVFRQWLQXDOO\RQWKHORRNRXWIRUEUDZQ\\RXQJ IURP WKH RXWVLGH $W OHDVW RQH IRXUSHUVRQ XQLW WKUHH WRXJKVWRWXUQDSURILWIRUKLP GULKWHQVROGLHUVDQGRQHFXLUO VHUYHKHUHDWDOOWLPHVVHH 9XOISODHFK 1R ´:ROI·V 3ODFHµ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

The Niunpinnas (No. “Ninepins”) is a much smaller hall where patrons play and bet on various bowling games. No alcohol is served, but the river rats from the Groghuis (No. “Grog House”) next door and mercenaries from the Seolforn Calc (No. “Silver Horse-shoe”) just to the south carry their drinks over from the nearby taverns. As to other entertainment, Gowyna’s (No. “Daisy’s”) is the best-known brothel on the Westorf; its proprietor, who is often referred to as Westmilce (No. “Madame of the West[orf]; West May”), is a vocal and respected member of the Westside community.

12.2.1 THE VODAGARAZUN The most prominent of Esgaroth’s six inns, the Vodagarazun (No. “House of Vodaga”) is located just to the right of the bridge entry, in the southwestern corner of the platform town. Built by Vodaga, Maesta of Laketown from T.A. 1591-98, and Kryn of the Wodu-craftas edfreahar, the Vodagarazun is one of the largest structures in Esgaroth. A half-timbered edifice, the inn has an assortment of different wood varieties, intricately carved and stained several different shades. Three stories high, with a central fourth floor tower, the Vodagarazun is also equipped with a broad southern porch overhanging the waters of the Long Lake. Windows are all provided with glass, shuttered on the inside, and can be opened during the warmer months. Interior doors have simple droplatch locks (Medium, +0, to pick). The inn accommodates a rather affluent clientele, but the famed tavern, known for its immense circular, forty-foot diameter cedar and hickory bar and for the impromptu musical sessions that occur nearly every evening, attracts folk of much more varied backgrounds. The innkeepers Odavacer and Brunehaut are popular town figures; they run the tavern and inn with the assistance of five barmaids, including their daughter, Shagelda. They charge 2cp a night for a room and 3cp including meals, which may be taken privately in the sleeping chamber if the customer desires. The Northrons harbor no social qualms about sharing a sleeping closet with another of the same sex, since it helps keep both warm, and single travellers staying at the Vodagarazun can expect to share space with a stranger around market time when the inn’s rooms fill up. At other times, Brunehaut will inquire before booking strangers in the same room. This could provide an excellent opportunity for the gamemaster to introduce NPCs to the players. Three of the barmaids, Marluh, Anni, and Gisela, live in a first floor room at the inn, while the older Gudelinda resides with her husband above the stable he manages just east of the inn. Odavacer brews a potent beer, and Brunehaut and her youngest, Aud, are responsible for providing victuals (their specialties are fish, fowl, and spiced lentil porridge).

2IIGXW\ GULKWHQ PHPEHUV IURP WKH %ULGJH *XDUG RIWHQ FRPH WR GULQN DW WKH EDU MXVW LQVLGHWKHPDLQHQWU\7ZRRIWKHWRZQ·VILQHVW ZDUULRUV:DJJHRUQDQG)UHDJDHQWHUWDLQOD GLHV DQG JDPEOHUV LQ WKHLU EDOFRQ\ ERRWK %UHDJOD :DJJHRUQ·V SXJLOLVWLFRIIVSULQJ RI WHQ EHFRPHVHPEURLOHG LQ DOWHUFDWLRQVVWHP PLQJIURPKLVLQIDWXDWLRQZLWK6KDJHOGD/LNH WKH 'RUZLQDGDQ 'XGDQQLV WKH HQLJPDWLF 1XULDJ8UGUDWKDQG5DHQGRULF%UHDJODLVD VHPLSHUPDQHQWUHVLGHQWRIWKH9RGDJDUD]XQ DQGVWD\VLQDWKLUGIORRUVXLWH

),567)/225 (QWU\ 7KH PDLQ SDVVDJH LQWR WKH 9RGDJDUD]XQ LV D RQHVWRU\ DGGLWLRQ WR WKH VLGHRIWKHPDLQEXLOGLQJ 2IIVHWGRRUVKHOS NHHSRXWWKHZHDWKHUWKRXJKHTXLSSHGZLWK GUDZEDUVWKH\DUHUDUHO\ORFNHG 3ULY\$FRPPXQDOODWULQHIRUSDWURQVWKLV FXUWDLQVKLHOGHGURRPKDVDEHQFKZLWKKROHV FXW WKURXJK WKH WRZQ·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f[X^XiXqle# ^ifle[]cffi

5DHQGRULFWKHVFDOHFODWWHUHUFRPPRQO\HQWHUWDLQVZLWK KLVOXWHRUIOXWHDFFRPSDQLHGE\DQDVVRUWPHQWRIRWKHU DPDWHXU PXVLFLDQV³E\ WKH ZHH KRXUV IRONV DUH RIWHQ GDQFLQJ RQ WDEOHWRSV 1RUWKURQV DUH NQRZQ IRU WKHLU URZG\GULQNLQJDQGILJKWVDUHQRWXQKHDUGRI2GDYDFHU DQG *LVHOD DUH ERWK DGHSW DW PDLQWDLQLQJ RUGHU DQG UHJXODUV DUH IUHTXHQWO\LQFOLQHGWR OHQGDKDQGRU ILVW

6WRUDJH6KHG$QDGGLWLRQEXLOWXQGHUWKHVHFRQGIORRU SRUFK 'LQLQJ5RRP6HSDUDWHGIURPWKHWDYHUQE\OLWWOHPRUH WKDQWKHEDUDQGWZRZRROFXUWDLQV7ZRRIWKHWDEOHVDUH EDUUHOVVDZQLQKDOI$QHDVWHUQH[LWOHDGVWRD\DUGZLWKD VWDEOHDFURVVWKHZD\IRUJXHVWV·PRXQWV 6WRUDJH &UDPPHG ZLWK NHJV IRRGVWXIIV DQG RWKHU PDWHULDOVUHOHYDQWWRWKHUXQQLQJRIDWDYHUQ %DUPDLGV·4XDUWHUV0DUOXK$QQLDQG*LVHODVKDUH WKLVFUDPSHGURRP

%RDUGLQJ5RRP6OHHSLQJTXDUWHUV IRURYHUQLJKWSD WURQV/LNHWKHRWKHUEHGURRPVLWKDVDQLURQERXQGFKHVW IRU SRVVHVVLRQV D ZRRGHQ VWDQG ZLWK D ZDVKEDVLQ DQG FKDPEHUSRWDQGDVPDOOILUHSODFH2QHRIWKHVWDIIEULQJV ZDWHUDQGHPSWLHVWKHFKDPEHUSRWHDFKPRUQLQJGXULQJ ZLQWHUDVPDOODPRXQWRIILUHZRRGLVDOVRSURYLGHG7KLV SDUWLFXODUURRPDOVRKDVWZRVOHHSLQJFORVHWVDQGDWDEOH RWKHUURRPVPD\DOVRKDYHDURFNLQJFKDLU(DFKVOHHSLQJ FORVHW KDV WZR ´EXQNVW\OHµVKHOYHVSDGGHG ZLWK VWUDZ DQG VHYHUDO EODQNHWV 7KH XSSHU VKHOIVOHHSV WZR FRPIRUWDEO\ WKH ORZHU FDQ EH XVHG DV VWRUDJHRUWRVOHHSDQRWKHUWZRGXULQJPDUNHWV DQG IHVWLYDOV %RDUGLQJ 5RRP 6HH 7KH VOHHSLQJ FORVHWLVVHWXQGHUWKHVWDLUZHOOWRWKHVHFRQG IORRUDQGFDQEHUDWKHUQRLV\ 6WDLUV %URDG VWHSV OHDG WR WKH VHFRQG IORRU %RDUGLQJ5RRPV6HH

6(&21')/225 3RUFK3HUIHFWIRUYLHZLQJVXQVHWVGXULQJ WKHVXPPHUWDEOHVDUHVHWXSKHUHGXULQJWKH ZDUPHUPRQWKV ,Q WKH ZLQWHU LW LV XVHG WR VWRUH SHULVKDEOH IRRG 7KH 9RGDJDUD]XQ·V JDEOHGVRXWKHUQHQGUHDFKHVULJKWWRWKHHGJH RI/DNHWRZQ·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

%HGGLQJ&ORVHW &RQWDLQV H[WUD EODQNHWV DQG EHG GLQJ$KLGGHQSHHSKROHDOORZVHDYHVGURSSHUVWRVS\RQ DFWLYLWLHVLQWKHEDOFRQ\ERRWKMXVWWRWKHVRXWK DQG%RDUGLQJ5RRPV6HH5RRP LVDFRPPRQURRPZKHUH%UXQHKDXWSXWVXSSRRUZD\IDU HUV DW UHGXFHG UDWHV RU LQ H[FKDQJH IRU PLQRU FKRUHV 3XUVHVGLVDSSHDUWKHUHZLWKUHPDUNDEOHUHJXODULW\ 6WDLUV6WHSVOHDGGRZQWRWKHILUVWIORRUDQGXSWRWKH WKLUG

Mf[X^XiXqle# j\Zfe[]cffi

7+,5'$1')2857+)/2256 5DIWHUV2SHQWRWKHWDYHUQEHORZ ,QQNHHSHUV·4XDUWHUV %UXQHKDXWDQG 2GDYDFHUUH VLGH KHUH $ VOLGLQJ ZRRG VKXWWHU RSHQV RQWR WKH DUHD DERYHWKHWDYHUQ $URSHDQGEHOOFRQWUDSWLRQMXVW RXWVLGHWKHVKXWWHUVWUHWFKHVGRZQWRWKHWDYHUQEDUDQG DOORZVWKHSURSULHWRUVWRVXPPRQHDFKRWKHUIURPHLWKHU ORFDWLRQ $V ZLWK WKH RWKHU WKLUG IORRU IODWV D ORZ FHLOLQJHGGRUPHUZLQGRZSURYLGHVVXQOLJKW 5DHQGRULF·V 6XLWH 7KH VFRS UHQWV WKLV VSDFH DW D UHGXFHGUDWHLQH[FKDQJHIRUSURYLGLQJIUHTXHQWHQWHUWDLQ PHQWLQWKHWDYHUQ5DHQGRULFRIWHQEULQJV\RXQJODGLHV KHUH 6WDLUV6WHSVOHDGWRWKHWRZHU$GRRUDWWKHWRSRI WKHVWDLUZHOOFDQEHORFNHG+DUGWR3LFN %UHDJOD·V6XLWH7KHLQWHULRULVGLUW\DQGVWUHZQZLWK ZDUULRU·VSDUDSKHQDOLD$VWXIIHGVWUDZGXPP\IRUVSDU ULQJKDQJVIURPDURSHQHDUWKHZLQGRZ 8UGUDWK·V 6XLWH 7KH 6RXWKHUQHU KDV FRYHUHG WKH ZDOOVDQGIORRUZLWKUXJVDQGWDSHVWULHVWRUHPLQGKLPVHOI RIKLV QDWLYH ODQG /DWHO\ 8UGUDWK KDV KDG GLIILFXOW\ SD\LQJKLVUHQWRQWLPH 'XGDQQLV·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·VURRI LVRQO\VHYHUDOIHHWEHORZ $XGDQG6KDJHOGD·V5RRP7KHIRXUWKIORRUWRZHU KRXVHV WKH LQQNHHSHU·V WZR DGROHVFHQW GDXJKWHUV 7KH SODFHLVEULJKWEHFDXVHRIDOOWKHZLQGRZVEXWGUDIW\LQWKH ZLQWHUGHVSLWHWKHILUHSODFHDQGWKLFNWDSHVWULHV

Mf[X^XiXqle# k_`i[Xe[ ]flik_]cffij

7+((5$11817$)(1 $PRGHVWRQHVWRU\WDYHUQRQWKHURZG\ZHVWHUQZKDUI WKH (UDQQXQ 6 ´/RQH 6XQVHWµ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·V SODWIRUP 'UDIW\ .LWFKHQ :KHUH +LOGHJULSD SUH SDUHVWKHSRRUTXDOLW\IDUH7KHEHHU KRZHYHU LV HVSHFLDOO\ KHDG\ DQG SR WHQW$UHDUGRRUH[LWVWRWKH\DUGDORQJ WKHVKLSEXLOGHU·VLQOHW6SLOOHGJURXQG JUDLQOLWWHUVWKHIORRUHVSHFLDOO\DWWKH QRUWKHUQ HQG RI WKH URRP QHDU WKH 5DPSVDW 5DPSV7ZRPRYHDEOHUDPSVDOORZ WKH ORDGLQJ DQG XQORDGLQJ RIJRRGV GLUHFWO\IURP WKHNLWFKHQ WR VKLSV LQ WKHLQOHWEHORZIRUWKH(UDQQXQDFWX DOO\ KDQJV RYHU WKH LQOHW 7ZR SDU EXFNOH DSSDUDWXVHV IRU WKH KRLVWLQJ DQG ORZHULQJ RIEDUUHOV DUH DIIL[HG WR WKHIORRUQHDUWKHUDPSV2QHUDPSLV XVHG SULPDULO\ WR GLVSRVH RI UHIXVH DQGWKHRWKHULVXVHGWRUDLVHEDUUHOVRI JURXQGJUDLQLQZKLFKVPXJJOHGJRRGV

DUH KLGGHQ XS LQWR WKH LQQ·VNLWFKHQ ,IFKDUDFWHUV DUH LQYHVWLJDWLQJDVSDUWRIDGYHQWXUHLQ6HFWLRQGULHG EORRGLVQRWLFHDEOHRQWKHIORRUDQGRQHRIWKHUDPSVZLWK D0HGLXP 3HUFHSWLRQUROO7KHUDPSVFDQEHSXOOHG LQVLGHDQGWKHRSHQLQJVIRUWKHPVHDOHGRIIZLWKDVOLGLQJ DQGORFNDEOHZRRGHQVKXWWHUZKHQWKH\DUHQRWLQXVH 3DQWU\%RWKIRRGVWXIIVDQGVPXJJOHGJRRGVDUHVWRUHG KHUH $ ODGGHU SURYLGHV DFFHVV WR D VPDOO ORIW ZKHUH HVSHFLDOO\YDOXDEOHVPXJJOHGLWHPVDUHVWDVKHG7KHODGGHU·V VPDOOVL]HDQGFDSDFLW\SUHYHQWV+LOGHJULSDIURPILOFKLQJ WKHPHUFKDQGLVHZKHQWKHRWKHUPRUHWUXVWZRUWK\VPXJ JOHUOHDGHUVDUHQRWSUHVHQW7KHGRRULVXVXDOO\ORFNHG +DUGWRSLFN )HQFH$SODQNIHQFHEORFNVRIIDVPDOO\DUGEHKLQG WKH(UDQQXQ +LOGHJULSD·V+RPH7KHHQRUPRXVZRPDQOLYHVLQD VPDOO ZLQGRZOHVV URRP RYHUGHFRUDWHG ZLWK YDOXDEOH WDSHVWULHVVHWLQWKHFRUQHURIDSODQNEXLOW%RHGE\OJDV ZDUHKRXVH %RHGE\OJDV,QOHW6HYHUDOVWDLUZD\VOHDGXSIURPWKH ZDWHUMXVWHDVWRIWKLVPDS·VH[WHQW

>dXËjXe[k_\ N`k\_l`c# ]`ijk]cffi

*Ó0$·6 $1'7+(:,7(+8,/ 7KH ODUJH *~PD·V FDOOHG WKH 6WLJ 1R ´6W\µ E\ UHJXODUSDWURQVZRXOGEHDQXQUHPDUNDEOHWDYHUQIURQWLQJ RQWR WKH :HVWRUI LI LW ZHUH QRW FRQQHFWHG ZLWK WKH :LWHKXLO1R´$PSKLWKHDWUH7RUWXUH+DOOµ %RWKDUH RZQHGDQGRSHUDWHGE\*~PD1R ´:DUULRU+HURµ EHFDXVH RIWKH HQRUPRXVSRSXODULW\ RIWKH EDUHNQXFNOH ER[LQJ PDWFKHVKHOGRQ WKH :LWHKXLO·VVWDJHPRVWHYH QLQJVIURPVSULQJWRDXWXPQWKH\KDYHEHFRPHWZRRIWKH PRVWOXFUDWLYHHVWDEOLVKPHQWVRQWKH:HVWVLGH7KHWDY HUQ LV D W\SLFDO WZRVWRU\ KDOIWLPEHUHG EXLOGLQJ ZLWK JODVV ZLQGRZV DQG H[WHUQDO VKXWWHUV 0HGLXP WR SLFN $VHULHVRIKXJHGRRUOLNHVKXWWHUVPD\EHRSHQHG WRDOORZWKHEDUURRPDYLHZRIDFWLYLWLHVRQWKHVWDJHLQWKH \DUG WR WKH VRXWK 7KH\ DUH QRW HVSHFLDOO\ VHFXUH 0H GLXPWRSLFN EXWWKHUHLVOLWWOHWKDWLVERWKSRUWDEOH DQGYDOXDEOHLQWKHWDYHUQDUHD

7KH:LWHKXLOLVDZRRGHQDPSKLWKHDWUHZKLFKLPLWDWHV WKHJUHDWHUVWRQHVWUXFWXUHVRIWKH'~QHGDLQ,WVIRUPPD\ ZHOO GDWH EDFNPLOOHQLDWR DWLPH ZKHQ 1RUWKURQV DQG '~QHGDLQOLYHGDORQJVLGHHDFKRWKHULQ(UHERU([FHSWIRU WKHEDFNZKLFKLVERDUGHGRYHUWRSUHYHQWLOOLFLWHQWU\LQWR WKH\DUGWKHDOWHUQDWLQJVHDWVDQGDLVOHVDUHVLPSOHSODQNV VHWXSRQDVWXUG\RSHQIUDPH/LJKWLQJIRUHYHQLQJERXWV LVSURYLGHGE\QXPHURXVODQWHUQVDWWDFKHGWRVFRQFHVRQ WKHH[WHULRUZDOOVRI*~PD·VWKHRXWGRRUSULY\*RZ\QD·V DQGKDQJLQJIURPWKHHDYHRIWKHFRYHUHGZDONZD\DWWKH DUHD·V HDVWHUQ H[WUHPH $ KLJK SODQNEXLOW IHQFH HQFORVHVWKHJDSV LQ WKH \DUG WKDW DUH QRW ERUGHUHGE\ EXLOGLQJV

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·V SDWURQV (YHU\\HDUWKHLWHPP\VWHULRXVO\DFTXLUHVDQHZDSSHQG DJHRIVRPHYDULHW\DQGWDOHVRQWKH:LWHKXLO·VVWDJHRI KRZWKHGRXJKW\*~PDVLQJOHKDQGHGO\VOHZWKHWHUULEOH EHDVWWRZKLFKWKHKHDGRQFHEHORQJHGJURZPRUHOHQJWK\ DQGPRUHPDJQLILFHQWZLWKHDFKWHOOLQJ7KHUHJXODUVFDOO WKHEHDVWWKH1RJVFXO1R´1DJVKHDGµ DUHIHUHQFHWR WKHIDPHG1RJDOHEUHZHGDQGVHUYHGDWWKH6HROIDUQ&DOF DQGDSXWGRZQRIWKHPRXQWHGFDUDYDQJXDUGPHUFHQDU LHVZKRIUHTXHQWWKHULYDOHVWDEOLVKPHQW1HZFRPHUVWKH EXWWRIWKHRQJRLQJ1RJVFXOMRNHDUHWROGDYHUVLRQRIWKH \DUQLQOXULGGHWDLOZKLOHWKH\SXUFKDVHWKHVWRU\WHOOHU·V GULQNVQRGRXEW

&RUULGRU6WDLUVOHDGXSDWWKHHQGRIWKHKDOO 5HDG\5RRP3URYLGHVVSDFHIRUWUDLQLQJVWRUDJHDQG FRQWHVWDQWSUHSDUDWLRQIRU:LWHKXLOHYHQWV 6WDLU $OORZVDFFHVVIURPWKH:XUPVZHJWR*~PD·V VHFRQG IORRU RIILFH $QLPDO 3HQ5HDG\ 5RRP 6RPHWLPHV D IHQFH LV DWWDFKHGWRWKH:LWHKXLOVWDJHDQGDQLPDOILJKWVDUHKHOG WKHUH7KHDQLPDOVDUHNHSWKHUHLPPHGLDWHO\SULRUWRWKHLU XVH 5HDG\5RRP6HHWKH5HDG\5RRP *DWH$ SODQNJDWH+DUGWRSLFN SURYLGHV DFFHVVWRWKH\DUGIURPWKH5DHWW6O\SH$QDUURZFRYHUHG ZDONZD\OHDGVIURPLWWRWKHEDFNHQWU\RI*~PD·V 3ULY\)RUWKHXVHRISDWURQV 6WDJH $ GXUDEOH KH[DJRQDO ZRRG VWUXFWXUH UDLVHG VRPH RIIWKHWRZQSODWIRUP,WPD\EHHTXLSSHGZLWK DUDLOLQJVWRUHGXQGHUQHDWK IRUDQLPDOILJKWV$FDUYHG ZRRGHQSRVWLPPHGLDWHO\HDVWRIWKHVWDJHLVKXQJZLWKD ODUJH EHOO XVHG WR GHVLJQDWH URXQGV DOWKRXJK ILJKWV JHQHUDOO\FRQWLQXHXQWLORQHFRQWHVWDQWLVXQFRQVFLRXV :LWHKXLO7KLVEOHDFKHUVW\OHVWDJHVHDWVSHRSOH %HQFKHVDUHLQFUHDVLQJO\HOHYDWHGIURPHDVWWRZHVW

6(&'21)/225 %DUURRP %DOFRQ\ 0RUH VSDFH IRU SDWURQV RIWKH 2QH LQWHUHVWLQJ FXVWRPHU LQYDULDEO\ DW WKH EDU RI WDYHUQ7ZRVKXWWHUVW\OHGRRUVSURYLGHDFFHVVWRDSLHUFHG *~PD·VZKRZLOOOLNHO\DFFRVWSOD\HUVYLVLWLQJWKHWDYHUQ UDLORXWGRRUEDOFRQ\RYHUORRNLQJWKH:LWHKXLO\DUG LV&U\P1R´%HQWµ KHLVDKXQFKHGWRRWKOHVVROGFRRW 6WDII4XDUWHUV'RRUVDUH0HGLXP WRSLFN ZKRVZHDUVWKDWKLVRQO\QRXULVKPHQWFRPHVIURPHDWLQJ &RUULGRU6WDLUVDWWKHQRUWKHQGRIWKHSDVVDJHZD\ VLOYHUDQGJROGFRLQVKLVIULHQGVZLOOEDFNKLPXSRQWKH OHDGGRZQ WUXWK RIWKLV WDOH LQGLFDWLQJ KLV ODFN RIWHHWK WR EH D *~PD·V2IILFH*~PDZRUNVKHUHPXFKRIWKHGD\$ FRQVHTXHQFH RIWKLV SHFXOLDU GLHW ,I 3&V DUH IRROLVK VWDLUZD\RXWVLGHSURYLGHVDFFHVVWRWKH:XUPVZHJ+HLV HQRXJKWRRIIHUKLPFRLQDJHKHZLOOIOLSWKHFRLQXSWKH DOZD\VZLOOLQJWRVSHDNWRSRWHQWLDO:LWHKXLOFRQWHVWDQWV DUP RI KLV WXQLF ZLWK UHPDUNDEOH VOHLJKRIKDQG DQG 'RRUVDUH+DUG WRSLFN FUXQFK DZD\IRUHIIHFWRQ RQHRIWKH IUDJPHQWVRIGULHG .LWFKHQ*~PD·VZHDOOLFRRNVOHHSVRQDSDOOHWLQWKH SRUNULQG KHNHHSV VHFUHWHG LQ KLV VOHHYHWUHDW&U\P·V FRUQHU 7ULFNHU\ERQXVDVSOD\HUVPXVWPDNHDQ([WUHPHO\ 3DQWU\ +DUG3HUFHSWLRQUROOWR QRWLFHWKHPDQHXYHU 6WRUDJH8VHGWRKROGIRRG DQG GULQN IRU WKH WDYHUQ $ VHFUHWSDVVDJH+DUGWR SHUFHLYH DW WKH EDFN RIWKH XQXVHG ILUHSODFH OHDGV ERWK WRDVHFUHWVSDFHEHQHDWKWKH VWDLUVDWDQGWRDVWRUDJH FORVHWDWWKH9DHWW6WRUFQH[W GRRU 'RRUV DUH XVXDOO\ ORFNHG 0HGLXP WR SLFN

>dXËjXe[k_\ N`k\_l`c# j\Zfe[]cffi

3DUORU3DUWRI*~PD·VSHUVRQDOVXLWH7KHSURSULHWRU WDNHVKLVPHDOVDQGRIWHQHQWHUWDLQV\RXQJZRPHQKHUH $FRQQHFWLQJEDOFRQ\RYHUORRNVWKH:LWHKXLO\DUG'RRUV WRWKHEDOFRQ\DQG%HGURRP$OFRYH DUH0HGLXP WRSLFNGRRUVWRWKH%DUURRP%DOFRQ\ DQG WKH&RUULGRU DUH+DUG WRSLFN %HGURRP$OFRYH:LWKDODUJHVOHHSLQJFORVHW

98/)3/$(&+

Mlc]$gcX\Z_# ]`ijk ]cffi

9XOISODHFK 1R ´9XOI·V 3ODFHµ LV D SRSXODUJDP EOLQJ HVWDEOLVKPHQW RQ WKH :HVWRUI 7KH KDOIWLPEHUHG EXLOGLQJKDVJODVVZLQGRZVZLWKH[WHUQDOVKXWWHUVZKLFK DUH+DUG WRSLFN7KHPDLQLURQERXQGGRRUVKDYH GURSODWFKHVZKLFKDUH+DUG WRSLFN9XOIUHJXODUO\ SXUFKDVHV$UXQ\DIURP8SKHOE·VDSRWKHFDU\7RGLIIXVH SRWHQWLDOO\YLROHQWVLWXDWLRQVKHZLOORIIHUDQJU\SDWURQVD URXQGRQWKHKRXVHDQGWKHQOLEHUDOO\WDLQWWKHGULQNRI WKHPRVWEHOOLJHUHQWORXWVZLWK WKHVOHHSLQGXFLQJKHUE 2WKHUSDWURQVDUHZRQWWRSOD\FUXHOSUDFWLFDOMRNHVRQ

WKRVHWKXVGLVSRVHGRIDQGWKHXQIRUWXQDWHEUXWHXVXDOO\ ZDNHVXSRQWKH:HVWRUIRULQWKH*DRO ILOWK\EUXLVHG SDUWO\RUZKROO\EDOGSRRUHUDQGZLVHU%UHDJODKDVEHHQ VXEMHFWHGWRWKLVWUHDWPHQWWKUHHWLPHVZLWKRXWUHDOL]LQJ WKHUH LV PRUH WKDQ FRLQFLGHQFH WR KLV EODFNRXWV DIWHU VZLJJLQJERR]HSURIIHUHGE\9XOI5HJXODUVVQLFNHUDWWKH OXJ EHKLQG KLV EDFN FDOOLQJ KLP $HJQRJ 1R ´%DOG\ (JJKHDGµ

),567)/225 *DPLQJ5RRP-XVWLQVLGHWKHPDLQGRRUZD\ERXQFHUV JHQWO\FRPSHOSDWURQVWRFKHFNWKHLUZHDSRQVZLWKHP SOR\HHVZKRVWDVKWKHPLQDVPDOOFXUWDLQHGURRPEHKLQG WKHEDU9LVLWRUVDUHQRWVHDUFKHGKRZHYHUVRFRQFHDOHG ZHDSRQVZKLFKDUHQRWYROXQWDULO\VXUUHQGHUHGZLOOQRWEH FRQILVFDWHG $ EDU VHUYHV WKH XVXDO WDYHUQ EHYHUDJHV FXVWRPHUV PD\UHQWYDULRXVGLFH FDUG DQG ERDUGJDPHV IRUDQRPLQDOIHHDQGJDPEOHDPRQJWKHPVHOYHVDWRQHRI WKHQXPHURXVWDEOHVVFDWWHUHGDERXWWKHURRP6HYHUDORI 9XOI·V VWDIIDOVR UXQKRXVHJDPHV :HDSRQV·6WRUDJH:KHUHWKHZHDS RQVRISDWURQVDUHVWRUHG7LSSLQJZHDSRQ FKHFNHUV ZLOO KHOS LQVXUH RQH·V SRVVHV VLRQVDUHWUHDWHGZLWKFDUH 9XOI·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

6(&21')/225 *DPLQJ5RRP:LWKWDEOHVDSOHQW\ &RUULGRU'RRUV9HU\+DUG WRSLFN OHDGWR9XOI·VIDPLO\VXLWHDQG WRWKHXSVWDLUV*DPLQJ5RRP .LWFKHQ 0DVWHU %HGURRP 9XOI KLV ZLIH DQGWKHLULQIDQWGDXJKWHUVOHHSKHUH %HGURRP9XOI·VWZRROGHUFKLOGUHQ VOHHSKHUH 3DQWU\

7+(1,813,11$6 7KH 1LXQSLQQDV 1R ´1LQHSLQVµ LVDVPDOOJDPEOLQJKDOOZKHUHFXVWRPHUV PD\SDUWLFLSDWHLQDQGEHWXSRQYDULRXV ERZOLQJJDPHV3OD\HUVDUHFKDUJHGSHU JDPH DQG PD\ EHW HLWKHU DJDLQVW WKH KRXVH RU LQGHSHQGHQWO\ DJDLQVW HDFK RWKHU7KHVKRSLVUXQE\$OG/LGD1R ´2OG 0DQ /LGD 2OG 6DLORUµ DQG KLV QHSKHZ *RVOLQJ 7KH ORIW\ RQHVWRU\ KDOIWLPEHUHG KDOO KDV D WKDWFKHGURRI DQGJODVVZLQGRZVZLWKZRRGHQODWWLFHV RQWKHLQVLGHORFNVDUH0HGLXPWR SLFN 7KHODWWLFHVDWWKHIDUHQGRIWKH ERZOLQJ DOOH\V DUH NHSW VKXW VR WKH VWUXFWXUH·V LQWHULRU LV UDWKHU GDUN 7KH H[WHULRU GRRUV KDYH GURSODWFK ORFNV ZKLFKDUH0HGLXP WRSLFN

>if^_l`j

0DLQ+DOO7KUHHDOOH\VDUHXVHGE\SDWURQV³WZRUXQ 7+(*52*+8,6 HDVWZHVW DQG RQH UXQV QRUWKVRXWK LQWR WKH JDEOHG $ULFNHW\RQHVWRU\SODQNEXLOWHGLILFHZLWKWZRGRRUV DGGLWLRQSHUSHQGLFXODUWRWKHPDLQEXLOGLQJ$OG/LGDLV DQGWZRZLQGRZVWKH*URJKXLV1R´*URJ+RXVHµ LV SHUPDQHQWO\SODQWHGRQDVWRROEHKLQGDFRXQWHUQH[WWR DVHULRXVGULQNHUV·WDYHUQSRSXODUZLWKWKHULYHUUDWFUHZV WKH PDLQ HQWU\ *RVOLQJ IHWFKHV KLP RFFDVLRQDO GULQNV ZKR SO\WKH PHUFKDQW WUDGH XS DQG GRZQ WKH &HOGXLQ IURPWKH*URJKXLVQH[WGRRUDQGDVVLVWVFXVWRPHUVZLWK 5LYHU5XQE\DKDOI/DNHPDQKDOI'RUZLQDGDQUHWLUHG DVVHPEOLQJNQRFNHGRYHUSLQV,QWKHHDUO\HYHQLQJWKH VDLORU/DVVPDQ1R´'RUZLQDGDQ6DLORUµ WKHVPDOOEDU FURZGLVPRVWO\ORFDOVWKLVFKDQJHVDVWKHHYHQLQJZHDUV VHUYHV RQO\ FKHDS PXOOHG ZLQH ZDWHU\ KRW PHDG DQG RQDQGERWKULYHUUDWVIURPWKH*URJKXLVDQGPHUFHQDULHV ´JURJµ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³
7DYHUQ:RRGHQODWWLFHVFUHHQVWKDWGRQRW RSHQDQGWKLFNFXUWDLQVNHHSRXWOLJKWDQGFROG IURPWKHWZRJODVVOHVV ZLQGRZV7KHZDOOVDUH ULQJHG E\ D VKHOIDW KHDGOHYHO FUDPPHG ZLWK SRWWHU\GULQNLQJYHVVHOVIODJRQVDQGGHPLMRKQV VWRROV DQG EHQFKHV DUH VFDWWHUHG KDSKD]DUGO\ DERXWWKHKDOO7KHIXUQLWXUHZDOOVDQGVXSSRUW EHDPVDUHFRYHUHGZLWKSURIXVHJUDIILWLVRPHRI WKHFDUYLQJUHIOHFWVUHPDUNDEOHVNLOO,PSURPSWX PXVLFDO VHWV³VKDQWLHV DQG WKH OLNH³DUH QRW XQFRPPRQ $OO WKUHH GRRUV PD\ EH LPSHGHG ZLWKDGUDZEDUDQGKDYHROGGURSODWFKHV0H GLXPWRSLFN 3URSULHWRU·V &RUQHU )URP KHUH /DVVPDQ GLVSHQVHV OLEHUDO TXDQWLWLHV RIGULQN $OO WKUHH W\SHV DUH FRPPRQO\ KHDWHG LQ WKH ILUHSODFH $ ODGGHUOHDGVXSWR WKH FUDPSHGORIW ZKHUHWKH RZQHUHDWVDQGVOHHSV 6WRUDJH1RRN7KLVFRUQHURIWKHDOOH\LVXVHG WRVWDVKEDUUHOVDQGILUNLQDV1R´4XDUWHU.HJVµ RIERR]H$ ZLQGRZIURP/DVVPDQ·V ORIWRYHU ORRNV WKHVSDFH EXW IHZ ZRXOG EH WHPSWHG WR VWHDO IURP KHUH DQ\ZD\ 7KHUH LV DOVR D JUHDW TXDQWLW\ RIILUHZRRG DQG D ODUJH WUXQGHO 1R ´:RRGHQ7XEµ LQZKLFK/DVVPDQLQIUHTXHQWO\ EDWKHV /DVVPDQ·V$OOH\1DPHGDIWHUWKH*URJKXLV·V SURSULHWRUWKLVDOOH\LVILOOHGZLWKSDWURQVRIWKDW WDYHUQLQZDUPZHDWKHU$ SODQNIHQFHVHSD UDWHVLWIURPWKH5DHWWVO\SH DQGWKHHQWU\WRD SULY\VKDUHGE\WKH*URJKXLVDQGWKH1LXQSLQQDV LVORFDWHGLQWKHVLGHRIWKHODWWHUEXLOGLQJMXVWWR WKHVRXWK

+($++8,6$1 $ QXPEHU RI +HDKKXLVDQ 1R ´*UHDWKRXVHVµ LQKDELWHG E\ WKH /DNHWRZQ·V ILQDQFLDOHOLWHDUHORFDWHGDURXQGERWKWKHQRUWK HUQ DQGVRXWKHUQ :RHWVDODDQG LQ WKHZHDOWK\ 7KUDLQKXLOVWHGH

2'$*$9,$·6+($++8,6 4XLWH VPDOO LQ FRPSDULVRQ WR PRVW RIWKH RWKHUJUHDWKRXVHVOLQLQJWKHFHQWUDO:RHWVDOD2GDJDYLD·V XQRVWHQWDWLRXV KRPH LV D ZHOOEXLOWWZRVWRU\VWUXFWXUH ZKHUH KH OLYHV ZLWK WZR ZHDOOL 7KH WLPEHU EHDPV DUH HODERUDWHO\FDUYHGZLWK IROLDJH IDQFLIXO ZDWHUFUHDWXUHV DQGVDLOLQJVFHQHV DQGWKHJODVVZLQGRZVKDYHH[WHUQDO VKXWWHUV ZKLFK DUH FORVHG HDFK HYHQLQJ ,QWHULRU GRRUV KDYH GURSODWFK ORFNV ZKLFK DUH +DUG WR SLFN 2WKHUUHVLGHQFHVRIZHDOWK\DUWLVDQVRUOHVVHUPHUFKDQWV PLJKWKDYHDVLPLODUOD\RXW

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

F[X^Xm`XËj ?\X_$_l`j# ]`ijk]cffi

6(&21')/225

*DOOHU\$UDLOLQJOLQHGEDOFRQ\ZKLFK RYHUORRNVWKH*UHDW+DOOWRWKHQRUWK 0DVWHU%HGURRP$KLGGHQFRPSDUW PHQWLQWKHIORRU([WUHPHO\+DUGWR SHUFHLYHDQGSLFNWKHORFN FRQWDLQVVS RIYDOXDEOHV 1RRNIRUERRNV2GDJDYLDLVRQHRIWKH IHZLQGLYLGXDOVLQ/DNHWRZQZKRKDVDQ DELGLQJLQWHUHVWLQERRNV6LQFHWKHFXOWXUHV RIWKH1RUWKURQVDUHSULPDULO\RUDOLQQD WXUHPRVWRIWKHVPDOOWURYHRIERRNVRQ YDULRXV VXEMHFWV KH NHHSV KHUH DUH IURP 'RUZLQLRQDQG*RQGRU2QHZLQGRZRYHU ORRNVWKH:RHWVDO 6LWWLQJ5RRP 6HUYDQWV4XDUWHUV7KHPDUULHGFRXSOH ZKRVHUYHDVEXWOHUKXLOZHDUG1R´+RXVH *XDUGµ DQGFRRNIRU2GDJDYLDVKDUHWKLV FKDPEHU

I`^lek_XËj?\X_$_l`j#]`ijk]cffi

5,*817+$·6 +($++8,6 5LJXQWKD OLYHV DQG UXQV KHU EXVLQHVV RXW RID KDOI WLPEHUHG EXLOGLQJ VWUDGGOLQJ WKH QRUWKHUQ :RHWJHODG 1R ´&DQDOµ QHDU WKH KRPHV DQG VKRSV RI WKH FORWKZRUNHUVRI/DNHWRZQZLWKZKRPVKHGHDOV:LQ GRZV KDYHJODVVDQG H[WHULRUVKXWWHUV DQG WKH URRIVRI ERWKWKHPDLQHDVWHUQVWUXFWXUHDQGWKHZHVWHUQWRZHUDUH WKDWFKHG,QWHULRUGRRUVXQOHVVRWKHUZLVHQRWHGDOOKDYH GURSODWFKORFNV+DUGWRSLFN

:RHWJHODG 7KH QRUWKHUQ VWUHWFK RI WKH ZDWHUZD\ UXQQLQJ WKURXJK /DNHWRZQ LV DGMDFHQW WR 5LJXQWKD·V KRPH7KHUHLVDPLOGVRXWKHUQIORZLQJFXUUHQWKHUH 7RZHU3RUFK6LPLODUWR DERYH 6WDEOH$SULYDWHVWDEOHIRUWZRILQH+RUVHVZKRDUH WHQGHG E\ RQH RIWKH ZHDOOL 7KH EURDG GRRUV PD\ EH EDUUHGDQGKDYHDORFNWKDWLV9HU\+DUG WRSLFN

6(&21')/225 *UHDW+DOO)RUGLQLQJDQGHQWHUWDLQLQJJXHVWV .LWFKHQ ),567)/225 3RUFK$FRYHUHGDUFDGHGSRUFKWKDWUXQVDORQJVLGHWKH 3DQWU\ FDQDODQGSURYLGHVDFFHVVWRWKHPDLQGRRU 3DUORU$PRUHUHOD[HGDUHDWKDQWKH*UHDW+DOO :RUNHU·V 5RRP 5LJXQWKD·V HPSOR\VWZR DVVLVWDQWV &RUULGRU6WDLUOHDGXSWRWKHORIWVHUYDQW·VTXDUWHUV ZKRZRUNKHUH DQGGRZQWRWKHHQWU\KDOO (QWU\+DOO7KHKHDY\H[WHUQDOGRRULVHTXLSSHGZLWK *XHVW4XDUWHUV$ZHOOIXUQLVKHGEHGURRPIRURYHU ERWKDGURSODWFKORFN9HU\+DUGWRSLFN DQGD QLJKWKRXVHJXHVWV GUDZEDU 6XPPHU5RRP6RODULXP%ULGJLQJWKHFDQDOEHORZ 2IILFH$OWKRXJKPRVWVKLSPHUFKDQWVKDYHRIILFHVLQ WKLVZHOOOLWURRPLVRFFXSLHGPRVWVXPPHUHYHQLQJVEXW WKH0DQJWKRU1R´7UDGHU·V'LVWULFWµ 5LJXQWKDUXQV HPSW\GXULQJWKHZLQWHUEHFDXVHLWEHFRPHVTXLWHFKLOO\ KHUEXVLQHVVIURPKHUH $GRRURSHQVRQWRDSLHUFHGUDLOEDOFRQ\ORRNLQJQRUWK 6WRUDJH 8VHG WRVWRUHYDOXDEOHG\HVDQGFORWKV WKH DORQJWKH:RHWJHODG GRRULVDOZD\VORFNHG9HU\+DUGWRSLFN :KHQ 4XDUWHUV6KDUHGE\5LJXQWKD·VDJLQJXQFOHDQGDXQW HVSHFLDOO\YDOXDEOHJRRGVDUHVWDVKHGKHUH5LJXQWKDLVQRW 6WDLUVOHDGXSDQGGRZQ$EDOFRQ\RSHQVVRXWK DERYHKLULQJDJXDUGWRNHHSZDWFKDWWKHHQWU\KDOO 5LJXQWKD·V4XDUWHUV7KHWKLUGIORRUEHGURRPFKDP EHUKDVDEDOFRQ\IDFLQJZHVW

I`^lek_XËj ?\X_$_l`j# j\Zfe[]cffi

Mfid\ei`ZËj ?\X_$_l`j# ]`ijkXe[ j\Zfe[]cffij

9250(15,&·6+($++8,6 9RUPHQULF·V JUHDWKRXVH LV RI D FHQWUDO KDOO GHVLJQ FRPPRQ LQ (VJDURWK +DOIWLPEHUHG ZLWK D VODWH URRI DQGJODVVZLQGRZVVKXWWHUHGRQWKHH[WHULRUWKHPHUFKDQW·V UHVLGHQFH LV SURPLQHQWO\ SRVLWLRQHG GLUHFWO\ DFURVV WKH QRUWKHUQ :RHWVDO IURP WKH7KUDLQKXLO 9RUPHQULF LQ KDELWV WKH VWUXFWXUH ZLWK KLV ODUJH H[WHQGHG IDPLO\ KXLOZHDUGDQ DQG ZHDOOL ,QWHULRUGRRUVKDYHGURSODWFK ORFNVZKLFKDUH0HGLXP WRSLFNZKLOHH[WHULRUGRRU ORFNVDUH9HU\+DUG

),567)/225 )R\HU$EURDGVWDLUZD\WRWKHQRUWKOHDGVXS 3ULY\ $QWHURRP([LWVDUHKXQJZLWKFXUWDLQV *XDUG5RRP$ ZDUPLQJURRP IRUWKHKXLOZHDUGDQ JXDUGPDQQLQJWKHIURQWGRRUDQGJUHDWKDOOHQWU\ 6HUYDQWV· 4XDUWHUV 7KH ZHDOOL LQ GHEWERQG WR 9RUPHQULFVOHHSKHUHLQFURZGHGFLUFXPVWDQFHV *XHVW4XDUWHUV$SSURSULDWHIRUDQDVVLVWDQWRUVHUYDQW RIDPRUHLPSRUWDQWRYHUQLJKWJXHVW *UHDW+DOO%DOFRQLHVDQGDVRXWKHUQJDOOHU\RYHUORRNWKH WDOOURRPUDLVHGSODWIRUPVRFFXS\WKHWZRRXWVLGHDLVOHV .LWFKHQ/DUJHDQGZHOOHTXLSSHG 3DQWU\%XWWHU\ 1RUWK+DOO$EURDGKDOOOHDGVXSWRWKHVHFRQGIORRU 6XLWH2FFXSLHGE\9RUPHQULF·VPRWKHUDQGIDWKHU LQODZ

6(&21')/225 *XHVW +DOO *XHVW 6XLWH /DYLVKO\ IXUQLVKHG IRU GLVWLQJXLVKHG YLVLWRUV 6XLWH ,QKDELWHG E\ 9RUPHQULF·V VRQ GDXJKWHULQ ODZDQGWKHLUWZRFKLOGUHQ 6XLWH9RUPHQULF·VWUXVWHGKXLOZHDUGDQ GXRIDWKHU DQGVRQ DQGWKHLUIDPLOLHVUHVLGHKHUH$GRRUDFFHVVHVWKH RXWGRRUEDOFRQ\ *DOOHU\2YHUORRNVWKH*UHDW+DOO2IWHQKLUHGVFRSV SOD\PXVLFIURPKHUH 2XWGRRU %DOFRQ\ &RYHUHG DQG SURYLGLQJ DFFHVV EHWZHHQWKHKXLOZHDUGTXDUWHUV DQGWKHPDVWHU·V TXDUWHUV 9RUPHQULF·V6XLWH7KHPHUFKDQWKLVZLIHDQGWZR \RXQJHUFKLOGUHQDOOVOHHSKHUH 3ULYDWH%DOFRQ\2YHUORRNVWKH*UHDW+DOO DQG DOORZVSDVVDJHIURPWKHPDVWHUVXLWH 0DVWHU·V+DOO %DOFRQ\2YHUORRNVWKH*UHDW+DOO 3DUORU 6WXG\ 9RUPHQULF FROOHFWV ZRRGFDUYLQJV ZKLFK KH GLVSOD\V KHUH $ORFNHG([WUHPHO\ +DUG FDELQHW KROGVYDOXDEOH:RRGHOYHQDQG'RUZLQLRQZLQHV

&5$)7$7(/,(56$1' 5(7$,/0(5&+$176

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·6&2%%/(5< +HPPLQJ·V4XDUWHUV)LOOHGZLWKUHOLFVRIKLVSDVWOLIH $WZRVWRU\KDOIWLPEHUHGEXLOGLQJZLWKDVWHHSWKDWFKHG DVDPHUFHQDU\ URRI+HPPLQJ·VFREEOHU\LVZHOONHSWDQGKDVJODVVLQWKH &RYHUHG3RUFK:LWKDSLHUFHGUDLOLQJ WKLVRXWGRRU H[WHUQDOO\VKXWWHUHGZLQGRZVLQGLFDWLRQVRIKLVVWDWXVDV SRUFKDFFHVVHVWKHVHFRQGVWRU\IODWV$ODGGHUOHDGVWRD DQ HGIUHDKDU.U\Q DQGKLV ILQDQFLDOVXFFHVV'URSODWFK ORFNDEOHWUDSGRRUWKHHQWUDQFHWRWKHORIWZKHUHDOORI GRRUORFNVDUH+DUG WRSLFN +HPPLQJ·VDSSUHQWLFHVOLYH 6KRS$VPDOOURRPSDUWLWLRQHGE\DFRXQWHUZKHUH /DUJH)ODW+HPPLQJUHQWVWKLVFKDPEHUWRDIDPLO\RI FXVWRPHU WUDQVDFWLRQV DUH PDGH HVSHFLDOO\ GXULQJ WKH IRXU FROGHUPRQWKV 0HGLXP)ODW5HQWHGWRD\RXQJFRXSOH 0DLQ :RUNVKRS +RUL]RQWDO ZRRGHQ VKXWWHUV IROG 6PDOO)ODW2FFXSLHGE\+HPPLQJ·VWZRMRXUQH\PDQ GRZQWRIRUPDODUJHFRXQWHULQWKHRULHOZLQGRZVIDFLQJ DVVLVWDQWV :DLQVWUDHUWDQDOORZLQJWUDQVDFWLRQVZLWKFXVWRPHUVRQ

?\dd`e^Ëj :fYYc\ip# ]`ijkXe[ j\Zfe[]cffij

(250(1/,&·6 :($32160,7+< $ QDUURZ WKUHHVWRU\ KDOIWLPEHUHG EXLOGLQJZLWKMHWWLHGXSSHUVWRULHVDQGD VODWHURRI(RUPHQOLF·VVPLWK\KDVJODVVHG DQGVKXWWHUHGZLQGRZVDQGIDQF\FDUYHG EHDPV LQGLFDWLYH RIKLV WUDGH VXFFHVV ([WHUQDOGRRUVKDYHGURSODWFKHV9HU\ +DUG WR SLFN 7KH VWUXFWXUH LV VLPLODUWRPDQ\RWKHUEXLOGLQJVWKURXJK RXW/DNHWRZQ

),567)/225 :RUNVKRS7KHVKXWWHUVLQWKHZLQ GRZRSHQWRIRUPDFRXQWHUDFFHVVLQJWKH VWUHHWZKLFKLVNHSWRSHQLQDOOEXWWKH ILHUFHVWFROGEHFDXVHWKHVPLWK\JHWVVR KRW 7KH IORRU LV FRYHUHG ZLWK FOD\ WR KHOSSUHYHQWILUHVDOWKRXJKPXFKRIWKH ZRUNLVGRQHRXWEDFNGXULQJDOOEXWWKH FROGHVW ZHDWKHU :RUNVKRS6WRUDJH $JDLQ ZLWK D FOD\FRYHUHGIORRUHVSHFLDOO\DURXQGWKH FHQWUDO IRUJH
)5('(*21'(·6 &$1'/(6+23 7KH VXFFHVVIXO FKDQGOHU )UHGHJRQGH UHVLGHV KHUH ZLWK KHU GDXJKWHU DQG DS SUHQWLFH *HOGD LQ TXDUWHUV VLPLODU WR PDQ\RWKHUUHWDLOHUV DQGFUDIWVIRON7KH XQXVXDOO\ WDOO RQHVWRU\ KDOIWLPEHUHG EXLOGLQJ LV VWHHSURRIHG WKDWFKHG DQG WKHJODVV ZLQGRZV DUH VKXWWHUHG RQ WKH LQVLGH 7KH H[WHULRU RIWKH VWUXFWXUH LV FRORUIXOO\ SDLQWHG
),567)/225 :RUNVKRS&DQGOHVRIDOOFRORUVVFHQWV VKDSHV DQG VL]HV OLQH VKHOYHV DORQJ WKH ZDOOVDQGKDQJIURPWKHFHLOLQJ %DFNURRP$ODGGHUSURYLGHVDFFHVVWR WKH ORIW 3ULY\ 6KHG 6(&21')/225 /LYLQJ6SDFH/RZFHLOLQJHGZLWKGRU PHUDQGRULHOZLQGRZV

83+(/%·6 %$5%(56+23$1' $327+(&$5<

8SKHOEULVHVEHIRUHGDZQHDFKPRUQ LQJDQGYLVLWVWKHVKRUHWRDWWHQGWRKLV KHUE JDUGHQV DQGIRUDJH IRUZLOG KHUEV 7KH +ODHVWFDPRO·V QLJKW %ULGJH *XDUG NQRZV KLP ZHOO RIWHQ KH LV WKH ILUVW WRZQVSHUVRQWROHDYH(VJDURWKHDFKPRUQ LQJ DQGKHXVXDOO\VWRSVE\(JLO·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·V *HQHUDO 6WRUHWRWKHVRXWKDQG(JLO·V%DNHU\WRWKH QRUWK WKH VWUXFWXUH KDV JODVV ZLQGRZV HTXLSSHG ZLWK H[WHULRU ZRRGHQ ODWWLFH VFUHHQV ZKLFK DUH +DUG WR SLFN ([WHULRU GRRUV KDYH GURSODWFK ORFNV ZKLFK DUH VLPLODUO\+DUG WR SLFN ,QWHULRUGRRUVKDYH0HGLXP ORFNV

=i\[\^fe[\Ëj :Xe[c\j_fg

MXc[fiËjJkfi\ Xe[Lg_\cYËj 9XiY\ij_fg

),567)/225 $SRWKHFDU\$EHOOLVDIIL[HGWRWKHIURQWHQWU\WRDOHUW WKHSURSULHWRUVWRWKHSUHVHQFHRIFXVWRPHUVLQWKHHYHQW WKDWWKH\DUHXSVWDLUVRULQWKHEDFN\DUG6KHOYHVKXQJ ZLWKGULHGKHUEVDQGFUDPPHGZLWKYDULRXVMDUVRIJURXQG KHUEV DQG VDOYHV FRYHU WKH ZDOOV RI WKH GDUN VZHHWO\ VFHQWHGVKRS7KHKHUEDOLVWDQGKLVZLIHZLOOFUXVKPL[ DQGSUHSDUHKHUEVWRFXVWRPHUVSHFLILFDWLRQVDOVRWKH\ FDQDGYLVHFOLHQWVDERXWWKHEHQHILWVRIFHUWDLQSODQWV)RU IUHVKKHUEVWKDWPXVWEHIRUDJHGLQWKHZLOG8SKHOEDVNV WKDW FXVWRPHUV JLYH KLP D GD\·V QRWLFH VR WKDW KH FDQ FROOHFWWKHPRQWKHPRUQLQJIROORZLQJWKHRUGHU,QVXFK FDVHVKHDVNVWKDWWKHFXVWRPHUPDNHDGHSRVLWRIKDOIWKH HVWLPDWHG SULFH RIWKH KHUEV QHHGHG UHIXQGDEOH LQ WKH HYHQWWKDW8SKHOELVXQDEOHWRORFDWHWKHGHVLUHGKHUEV 1HHGOHVVWRVD\PDQ\KHUEVDUHREWDLQDEOHRQO\LQVHDVRQ PRVWFDQQRWEHJRWWHQGXULQJWKHZLQWHU 3ULY\ 6WDLUV/HDGXS
( 7KXUODQG5HZN ) 6LOUDHQ * $UODQ + &DUHIUHH0XVWDUGDQGVRPH'DUVXULRQ , 6LQGROXLQ - $UXQ\DDQG
6(&21')/225 7UHDWPHQW5RRP7ZRVWDFNHGVOHHSLQJSDOOHWVSUR YLGHDSODFHIRUSDWLHQWWRUHFOLQHZKLOHEHLQJWUHDWHGRU EOHG8SKHOEDOVRFXWVKDLUDQGVKDYHVFXVWRPHUVKHUH$ JUHDWEHOLHYHULQWKHEHQHILWVRIIUHVKDLUWKHEDUEHUNHHSV WKHIURQWZLQGRZRSHQLQDOOEXWWKHELWWHUHVWFROGPDJLF ZLQGFKLPHVKDQJLQJIURPWKHMDPEMXVWRYHUWKHZLQGRZ VRRWKHWKHQHUYHVRISDWLHQWVDOHYHO&DOPVSHOODIIHFWV DOOZKRKHDULW $GRRUSURYLGHVHJUHVVWRDVPDOOEDOFRQ\ ZLWKDVROLGSODQNUDLOLQJ 7+,5')/225 /LYLQJ 4XDUWHUV 2FFXSLHG E\ WKH EDUEHU DQG KLV VSRXVH)XUQLVKHGZLWKVKHOYHVDVPDOOWDEOHDQGVWRROVD VWDQGZLWKDZDVKEDVLQDODUJHFKHVWDVOHHSLQJFORVHWILQH ZRROFXUWDLQVDQGDQHPSW\FUDGOHZKLFKWKHFRXSOHKDV UHIXVHGWREXUQ LQDFFRUGDQFHZLWK1RUWKURQWUDGLWLRQ 7KHLUQHVWHJJRIMHZHOU\DQGFRLQLVVWDVKHGLQDSLOORZ LQWKHFORVHW7KHVORSLQJURRIPHDQVWKHFHLOLQJLQWKH FRUQHUVFRPHVUDWKHUORZDGRRUDFFHVVHVDSODQNUDLOLQJ EDOFRQ\RYHUORRNLQJWKH+XZDHUN\Q

9$/'25·6*(1(5$/ 6725(

9DOGRU·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´FUHGLWµ SXUFKDVHV PDQ\GHVWLWXWHWRZQVIRONKDYHEHHQIRUFHGWR PDNHLQWKHODVWIHZ\HDUV

),567Y/225 , 6WRUH ,WHPV RI HYHU\ FRQFHLYDEOH VRUW FOXWWHU WKH ZDOOWRZDOO VKHOYHV VHH 6HFWLRQ IRU SULFHV DQG VRPHRQH LV DOZD\V SUHVHQW DW WKH FRXQWHU RSSRVLWHWKHIURQWHQWU\WRKHOSFXVWRPHUVILQGZKDWWKH\ ZDQW$ODGGHUQHDUE\DOORZVDFFHVVWRVKHOYHVKLJKHUXS 'ULKWHQPHPEHUVFDQSXUFKDVHIDLUTXDOLW\VHFRQGKDQG ZHDSRQVFDUDYDQWUDGHUVFDQEX\FORDNVDQLPDOIHHGDQG SUHVHUYHGUDWLRQVDQG%HRUWQRYRIWHQVWRSVLQWRUHILOOKLV SXUVHZLWKKRQH\VZHHWVDQGDSSOHVZKLFKKHGLVSHQVHVWR (VJDURWK·V FKLOGUHQ 0XFK RIWKH HTXLSPHQW LV VOLJKWO\ XVHG9DOGRULVDOZD\VLQWHUHVWHGLQEX\LQJRUWUDGLQJIRU QHZ LWHPV DQG KH PDNHV UHJXODU SXUFKDVHV IURP WKH :HVWERUJX]SDZQVKRS ,WHPVFXUUHQWO\DYDLODEOHLQWKHVKRSDUH ³IRXUGR]HQ 2%:RRGHOIDUURZVQRQ PDJLF ³WZR*UDPX]FRPSRVLWHERZVPDGHIURP .LQH KRUQ2%GXHWRTXDOLW\ ³D'RUZLQLRQFRQFKKRUQIURPWKH6HDRI5KQ ZKLFKPDJLFDOO\VXPPRQV ILVK[GD\ ³DPDJLF'ZDUYHQ 2%EURDGVZRUG ³DPDJLF'ZDUYHQ 2%EDWWOHD[H ³DVXLWRIZHOOPDGH (VWDUDYsVWXGGHGOHDWKHU DUPRUZHDUVDV6RIW/HDWKHU$7SURWHFWVDV 5LJLG/HDWKHU$7 ³DVLQJOH:RRGHOYHQ)LDUDKLGHERRWZKLFK PDJLFDOO\SURYLGHVWR6WDONLQJPDQHXYHUV DQG ³D9DUJXUDWVFKLVWKRQHVWRQHQRQPDJLF 2% WRWKHILUVWILYHDWWDFNVE\EODGHGZHDSRQV VKDUSHQHGIRUDWOHDVWPLQXWHVRQLW

7KHDUURZVDUHLQDEDUUHODQGUHFRJQL]DEOHWRDVNLOOHG DUFKHU RU IOHWFKHU1RUPDO 3HUFHSWLRQ UROO 7KH ERZVDUHXQVWUXQJRQDVKHOIQHDUWKHRZQHU·VFRXQWHUDV LV WKH FRQFK 9DOGRU LV XQDZDUHRIWKH ODWWHU·V PDJLF %RWK 'ZDUYHQ ZHDSRQV DUH LQ D ORFNHG FDELQHW 9HU\ +DUG WR SLFN EHKLQG WKH FRXQWHU DQG DUH RQO\ DYDLODEOHWRH[DPLQHXSRQUHTXHVW9DOGRUNQRZV'ZDU YHQTXDOLW\DQGZLOOFKDUJHH[SHQVLYHO\IRUWKHLWHPVEXW KH KDV IDLOHG WR UHFRJQL]H WKH VXSHULRU TXDOLW\ RIWKH (VWDUDYsDUPRUVWDVKHGDFURVVWKHURRP7KH:RRGHOYHQ ERRWLVORFDWHGXSVWDLUVLWVPDWHZDVVWROHQVRPHWLPH DJR DV LV WKH 9DUJXUDW KRQH ZKLFK OLHV KLGGHQ DQG IRUJRWWHQDWWKHEDFNRIDVKHOIRIVHD[HVDQGEURDGVZRUGV 9HU\+DUGWRSHUFHLYH
6(&21')/225 8SVWDLUV6WRUH/LNHWKHPDLQURRPGRZQVWDLUVEXW ZLWKDKLJKUDIWHUHGFHLOLQJ .LWFKHQ3DUORU%HKLQGDGRRUWKDWLVXVXDOO\ORFNHG 9HU\ +DUG WR SLFN DQG ILOOHG ZLWK WKH XVXDO DFFRXWHUPHQWV $ GRRU DFFHVVHV D SLHUFHGUDLO EDOFRQ\ RYHUORRNLQJ )LWKHOURG 3DQWU\ %HGURRP :LWK VOHHSLQJ FORVHWV IRU WKH IDPLO\ DQG DFFHVVWRDQRWKHUSLHUFHGUDLOEDOFRQ\ZKLFKSURYLGHVD VZHHSLQJYLHZRIWKH +XZDHUN\Q

MXc[fiËjJkfi\# j\Zfe[ ]cffi

Lg_\cYËj 9XiY\ij_fg# lgg\i]cffij

=fc^XiËj KXee\ip# ]`ijk]cffi

1RUWKURQV QRWDEO\ &XOWRIWKH 6WDJDGKHU HQWV FRQVLGHUWKH KDUW D VDFUHG DQLPDO DQG ZRXOGREMHFWWRKXQWLQJLWPHUHO\IRULWVKLGH )ROJDU KDV QR VXFK TXDOPV EXW OLNH VRPH RWKHU 1RUWKURQV KH ILQGV WKH WUDSSLQJ RI EOXHRWWHUVDV\PERORIJRRGOXFNWKURXJKRXW 5KRYDQLRQ REMHFWLRQDEOHDQG ZLOOQRWSXU FKDVHWKHPWKHJRLQJSULFHIRUWKHLUSHOWVDUH LQFOXGHG IRU WKH VDNH RI FRPSOHWHQHVV 1RUWKURQV PDNH OLWWOH GLVWLQFWLRQ EHWZHHQ WKH SHOWV RIYDULRXV W\SHV RI ZHDVHOV 1R ´9LVXODVµ H[FHSW IRUWKH EURZQ DQG EODFN VWULSHGVXPPHUFRDWRIWKHVWRDW1R´6WRWDµ DQGWKHPRUHKLJKO\YDOXHGZKLWHDQGEODFN WDLOHG HUPLQH 1R ´+DUPDµ ZLQWHU FRDW %DGJHUSHOWVDUHXVHGWRPDNHDUURZTXLYHUV VRWKH\DUHLQFRQWLQXDOGHPDQG )2/*$5·67$11(5< )ROJDU·V ZRUNVKRS DQG KRPH LV D WZRVWRU\ KDOI )ROJDU·VWDQQHU\LVLQWKHVRXWKHUQHQGRIWKH9LVFHUVWHGH WLPEHUHGKDOOZLWKJODVVZLQGRZV DQGH[WHULRUVKXWWHUV VRWKDWWKHWHUULEOHRGRUVDVVRFLDWHGZLWKVXFKDEXVLQHVV 7KHZLQGRZVOLNHPRVWRIWKHGRRUVLQWKHEXLOGLQJKDYH DUH FDUULHGDZD\IURP /DNHWRZQ E\WKHSUHGRPLQDQWO\ QRUWKHUO\ ZLQGV $OWKRXJK WKHUH DUH D FRXSOH RIFORWK ORFNVZKLFKDUH+DUG WRSLFN$ WDOOSODQNIHQFH PHUFKDQWV LQ (VJDURWK ZKRVSHFLDOL]HLQ IXUV )ROJDULV VXUURXQGVDKXJH\DUGZKHUHPXFKRIWKHWDQQLQJZRUNLV PRUHOLNHO\WRSXUFKDVHIXUVGLUHFWO\IURPWUDSSHUVDQGKH GRQHZHDWKHUSHUPLWWLQJ JHQHUDOO\RIIHUVDIDLUSULFH)RUUDQJHUSOD\HUFKDUDFWHUV ),567)/225 ZKR ZLVK WR EULQJ LQ H[WUD PRQH\ VRPH DSSUR[LPDWH &XVWRPHU6HUYLFH-XVWLQVLGHWKHPDLQHQWU\HTXLSSHG SULFHVIRUIXUVWKDWWUDSSHUVPRVWFRPPRQO\FDWFKDUH ZLWK D EHOO WR DOHUW HPSOR\HHV WR YLVLWLQJ SDWURQV LV D %ODFN0LQNVS FRXQWHUZKHUHFXVWRPHUVDUHKHOSHG 1LPILDUD VS 6WRUDJH :KLWH)R[VSZLQWHU 6WRUDJH7KHPRVWYDOXDEOHIXUVDUHVWRUHGKHUHEHKLQG %OXH2WWHUVS DGRRUZKLFKLV9HU\+DUG WRSLFN (UPLQHVSZLQWHU 6WRUDJH)RURDNEDUNXULQHOLPHDQGRWKHULQJUHGL 3LQH0DUWHQVS HQWVXVHGLQWKHWDQQLQJSURFHVV 6WRDWVSVXPPHU :HDVHO VS %HDYHUVS $WHQOD VS ZLQWHU VSRWKHU 5DFFRRQVS *OXWDQFSDYHUDJH %DGJHU FSDYHUDJH 2SRVVXPFSDYHUDJH %ODFN6TXLUUHOFSDYHUDJH 7KH ILQHU SHOWV IHWFK PXFK PRUHYDULHGSULFHVVLQFHWKHLU TXDOLW\FDQVSDQDJUHDWHUUDQJH $QLPDOV WKDW KDYH KDG WKHLU SHOWVVODVKHGIURPFRPEDWIRU H[DPSOH DUHOLDEOHWREHZRUWK OHVV7KHVLOYHU\ZKLWHKLGHRI WKH1LPILDUDLVQRWUHDOO\DIXU EXW KLJKO\ YDOXHG QRQHWKHOHVV EHFDXVHRILWVVXSSOHQHVV6RPH

:RUN$UHD:LWKDODUJHZRUNWDEOH DQG VHYHUDO ERLOLQJ DQG FXULQJ YDWV $ KXJHILUHSODFHSURYLGHVVSDFHWRKHDWWKH YDWV 6WDLU /HDGV XS WR WKH VHFRQG IORRU OLYLQJTXDUWHUV
6(&21')/225 .LWFKHQ ,3DQWU\ 0DVWHU %HGURRP 8VHG E\ )ROJDU KLVVSRXVHDQGWZRFKLOGUHQ %HGURRP8VHGE\)ROJDU·VDVVLVWDQWV DQGDSSUHQWLFHV 6XQURRP8VHGDVDQDIWHUQRRQVLW WLQJURRPE\WKHRFFXSDQWV

+(5(:8/)·6&/27+'<(,1* :25.6+23

%HFDXVH RIWKH ODUJH DPRXQW RIZDWHU QHHGHG WR FUHDWH G\H VROXWLRQV+HUHZXOI·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

),567)/225 6KRS $VPDOO DOFRYHSDUWLWLRQHGRIIIURP WKHPDLQ ZRUNLQJ DUHDE\DFRXQWHU 0DLQ :RUNLQJ $UHD +XJH G\H YDWV ULQJ WKH URRP DQG ILUHSODFHVSURYLGHVSDFHWRKHDWVROXWLRQV7ZRKHDY\GXW\PL[LQJ WDEOHVVWDQGLQWKHFHQWHURIWKHURRP7KH'RUZLQDGDQZRPDQ (DUZXQJD 1R ´:LWKRXW &DXVHµ WKH VSRXVH RI.\QRGHQ LV XVXDOO\LQFKDUJHKHUH 6ROXWLRQ6WRUDJH %DUUHOVDQGRWKHUFRQWDLQHUVRIG\HVPRU GDQWVXULQHHWF

?\i\nlc]Ëj :cfk_;p\`e^# ]`ijk]cffi

6(&21')/225 '\HLQJ$UHD2SHQWREHORZ ²6WRUDJH$UHDV'RRUVDUH+DUGWR SLFN

/,11/2&·6&2,160,7+<

?\i\nlc]Ëj :cfk_;p\`e^# j\Zfe[]cffi

/LQQORF0DHOD·VFRLQ DQGMHZHOVPLWK\LVOR FDWHG LQ D ZHOONHSW RQHVWRU\ KDOIWLPEHUHG ZRUNVKRS DEXWWLQJ KLV WZRVWRU\ UHVLGHQFH LQ WKHZHOOWRGR7KUDLQKXLOVWHGH7KHZDOOVLQWKH GLVDUPLQJO\ TXDLQW EXLOGLQJ DUH DFWXDOO\ D IXOO IRRWWKLFNWKHLURQEDUUHGDQGVKXWWHUHGJODVVZLQGRZV &ORVHW7KHPRVWH[SHQVLYHFORWKVHJSXUSXUD>1R ´6LONVKRW7DIIHWDµ@ DQGG\HVHJGRJZKHONVKHOOILVK DQGWKHLURQERXQGH[WHULRUGRRUVKDYHORFNVZKLFKDUH ([WUHPHO\+DUG WRSLFN7KHURRIVRIERWKEXLOG DUHNHSWKHUH LQJVDUHVKLQJOHGZLWKVODWH/LQQORFZDVWKHDVVLVWDQWRI +HUHZXOI·V2IILFH$VHFUHWVWRUDJHVSDFH9HU\+DUG WKH0DHODRI(VJDURWK:KHQKLVSUHGHFHVVRUSHULVKHGLQ WRSHUFHLYH EHQHDWKWKHVWDLUZHOOKROGVDQLURQFRIIHU WKH3ODJXHKHWRRNRQWKHUROHRIFRLQHUDQGQRZRSHUDWHV ZLWK D WUDSSHG ORFN PHFKDQLVP D QHHGOH FRDWHG ZLWK KLVEXVLQHVVDORQH %ULWKDJXUWKLV+DUGWRGLVDUPWKHORFNLV9HU\+DUG
³JROGSHQGDQWZLWKJROGZLUHGHFRUDWLRQDQG JDUQHWFORLVRQQpLQWKHIRUPRIDVW\OL]HGERDU·V KHDGZRUWKVS ³PLOOHILRULJODVVURGVOHQJWKVDUH DQG VSVSVSUHVSHFWLYHO\ ³WZLVWHGVLOYHUDUPULQJVS ³JROGEHDGVVSHDFK ³FRORUHGJODVVEHDGVVSHDFK ³ZRRGHQVSRRORIVLOYHUZLUHVS ³ZRRGHQVSRRORIFRSSHUZLUHVS ³JLOGHGEURQ]HVNHOHWRQNH\VS ³OHDWKHUGUDZVWULQJSRXFKZLWKODUJHJDUQHW EHDGVVSHDFK ³PLOOHILRULJODVVEHDGVVSHDFK ³JROGSLQVVHWZLWKJDUQHWFDEXFKRQVDQGOLQNHG E\DILQHJROGFKDLQIRUIDVWHQLQJDVQRRGRQD ZRPDQ·VKHDGVS ³DVLOYHU´SLJµDERXW[[ZHLJKLQJ MXVWRYHUOEVVS ³FRSSHUSLJVHDFKDERXW[[DQG ZHLJKLQJDERXWOEVVSHDFK ³VLOYHUQLHOORTXRLWEURRFKLQFKHVLQGLDPHWHU VS

³VLOYHUQHFNWRUTXHVS ³VLOYHUVDXFHUEURRFKZLWKJROGZLUHGHFRUDWLRQ LQGLDPHWHUVS ³VLOYHUVTXDUHKHDGHGEURRFKVTXDUHZLWK HQDPHOFORLVRQQpVS DQG ³DQH[WUHPHO\VXSSOHQLPILDUDKLGHSRXFKHPEURL GHUHGZLWKWKHHPEOHPRI(VJDURWKLQEOXHDQG EURZQKDVWZRSRFNHWVHDFKFRQWDLQLQJDKDUG LURQFRLQGLHRQHZLWKWZRLQWDJOLRLPSULQWVRID PLHWDQDQGRQHZLWKWZRLPSULQWVRIDPDHO )URQW
6(&21')/225 &RUULGRU 3DQWU\ %HGURRP .LWFKHQ$QDJHGZHDOOLZKRVHUYHVDV/LQQORF·VFRRN EXWOHUDQGKXLOZHDUGVOHHSVEHKLQGWKHILUHSODFH+LVKHDG LVULJKWRYHUWKHVDIHLQWKHZRUNVKRS VRKHLVYHU\ OLNHO\WRKHDUWKLHYHVDWWHPSWLQJWRUREWKH\DUG

C`eecfZZËj :f`ejd`k_p

6+,33/$16 7KH SODQV RIWKUHH VKLS W\SHV FRPPRQO\ IRXQG GRFNHG LQ WKH :RHWVDODDQGDQRWKHUFRPPRQO\ HQFRXQWHUHG RQ WKH ORZHU 5LYHU 5XQQLQJ DUH GHVFULEHG EHORZ 6PDOORDUHGERDWVORJDQGSODQN UDIWVXVHGERWKE\5DIWHOYHVDQG /DNHIRON DQGHYHQ:RRGHOYHQ 6LULWKRUQFDQRHVDUHDOVRFRPPRQ RQWKH/RQJ/DNH =fcZjk\Xcc

NX\i_l`cXe

27+(5%8,/',1*6

&1($55$

7KHFQHDUUD1R´5LYHU%RDW0HUFKDQW6KLSµ LVRQH NLQGRIPHUFKDQWVKLSWKDWWUDGHVDORQJWKH/RQJ /DNH :$(5+8,/$1 DQGWKH5LYHU5XQQLQJ0RVWDUHFOLQNHUEXLOWDQGUDQJH 0RVW:DHUKXLODQ1R´:DUHKRXVHVµ DSSURSULDWHO\ IURP ORQJZLWKEHDPVRI 7KHFQHDUUDLVRI ORFDWHGLQWKH:DHU~WKRU1R ´:DUHKRXVH'LVWULFWµ VKDOORZ GUDXJKW WR HQDEOH LWV FUHZ WR SRUWDJH DURXQG DUH WZRVWRU\ VWUXFWXUHV SODQNEXLOW WR LQFUHDVH WKHLU UDSLGVVKDOORZVDQGWKH/LQGDO )DOOV$OWKRXJKVHWWLQJ VWUHQJWKDQGGLVFRXUDJHWKHIW7KH\WHQGWREHZLQGRZ VDLOZLWKDVPDQ\DVWHQRUHYHQWZHQW\KDQGVZRXOGEH OHVVDQGVWRXWLURQERXQGGRRUVZLWKGURSODWFKORFNVDUH SRVVLEOHEHFDXVHRILWVODUJHVL]HWKHVQLS·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´7RZQ6WDEOHVµ DUHRFFX OHYHOVIRUFDUJRVWRUDJHWKHVKLSERWWRPDQGWKHSODWIRUP SLHGSULPDULO\E\KRUVHVFDWWOHDQGVKHHSRWKHUDQLPDOV LWVHOI7KHFUHZULJVXSDFDQYDVVKHOWHURYHUKHDGGXULQJ DUHJURXSHGWRJHWKHULQWKHWKLUGEXLOGLQJ$OWKRXJKWRZQ IRXO ZHDWKHU 7KH ERZRID FQHDUUD LV HYHQ KLJKHU DQG GZHOOHUV NHHS OLYHVWRFN LQ WKHLU \DUGV RQ WKH SODWIRUP PRUHFXUYHGWKDQWKHVWHUQDQGVSRUWVDZHOOFDUYHGSURZ SURSHUPDQ\DOVRUDLVHWKHPLQ WKH VWDEOHV )HHGLQJ LV ODUJHO\ WKH UHVSRQVLELOLW\RIWKH RZQ HUVDOWKRXJKeRWKZ\QDQGWZR DVVLVWDQWVPDQDJHWKHZRUNQRW XQGHUWDNHQ E\ FRPPXQLW\ PHPEHUVeRWKZ\QLVSDLGRXW RI(VJDURWK·VWD[HVLWLVXSWR KHULQWXUQWRSD\KHUVWDEOH KDQGV 6KH UHVLGHV LQ D VPDOO SODQNEXLOWKDOOQHDUWKHVWDEOHV KHUDSSUHQWLFHVOLYHRQWKHVHF RQG VWRU\ RIRQH RIWKH KRUVH VWDEOHV DPLGVWWKH IHHGVWRUHV DQG WKH ILVKLQJ FDWV NHSW WR GLVFRXUDJHSHVWV

'HVSLWH LWV VKDOORZ IUHHERDUG ZKHQ ODGHQ WKH FQHDUUD LV TXLWH FDSDEOH RIQDYLJDWLQJ HYHQ WKH VWRUP\ ZDWHUVRIWKH6HDRI5KQ,WLVPRUHOLJKWZHLJKWDQGRSHQ WR WKH HOHPHQWV WKDQ 'RUZLQDGDQ VKLSV RIFRPSDUDEOH VL]HEXWLWLVGHVLJQHGWRULGHDWRSWKHZDYHVUDWKHUWKDQ FXWWKURXJKWKHP7KLVPDNHV IRUURXJKVDLOLQJLQKLJK ZLQGVUHSHDWHGO\OXUFKLQJXSWRWKHFUHVWRIHDFK ODUJH VZHOOEHIRUHSOXQJLQJSURZILUVWGRZQLQWRWKHIROORZLQJ WURXJK XQVXLWDEOH IRU WKH IDLQWKHDUWHG RU ZHDN VWRPDFKHG

0(51$& /DNHWRZQPDLQWDLQVILYHGULKWHQSDWUROVKLSVRUPHUQDF 1R ´/DNHVKLSVµ DOWKRXJK DOO ILYH DUH VHOGRP HP SOR\HG DWRQHWLPH &OLQNHUEXLOW HDFK KDV DQ H[WHUQDO UXGGHUDQGDVLQJOHPDVWZKLFKPD\EHORZHUHGWRDOORZ DFFHVVWRWKH:RHWJHODGWKLVDOVRPDNHVVWRUDJHLQWKH GULKWHQKHULEXKU1R ´+DUERUµ HDVLHU $IXOOFUHZRI HLJKWLVQRUPDOEXWWKHVKLSIUHTXHQWO\RSHUDWHVZLWKKDOI WKDW

:e\XiiX

D\ieXZ

7KHQDUURZYHVVHOLV ZLGHDWLWVEURDGHVWSRLQWDQG VRPH ORQJ:RRGHQEUDFHVUHLQIRUFHWKHKXOOZLWK EHQFKHV IRU WKH URZHUV DQG D SODWIRUP IRU WKH UXGGHU RSHUDWRU 7KH IUHHERDUG LVRQO\ DQG D IXOO FUHZ FDQ SRUWDJHWKHVKLSZLWKRXWWRRPXFKGLIILFXOW\7KHSURZ RIHDFKRI/DNHWRZQ·VPHUQDFDQ LVLQWULFDWHO\DQGLQGL YLGXDOO\FDUYHGZLWKDIDQWDVWLFPRQVWHURUDQLPDOYLVDJH DQGWKHOXJVDLOVRIDOORIWKHPDUHG\HGZLWKEURDGYHUWLFDO PDURRQVWULSHV(DFKDOVRIOLHVDVPDOOWULDQJXODUEDQQHURI EOXHHPEURLGHUHGZLWKDUHSUHVHQWDWLRQRIWKHSODWIRUP WRZQ

KYliilZ

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´7KUHHSODQNHGµ DIODW 7+8558& 7KH7KXUUXF1R´6PDOO6KLSµ LVVLPSO\DVPDOOHU ERWWRPHGVNLIIZLWKDVLQJOHVSULWVDLODQGWZRYHU\ODUJH YHUVLRQRIWKHEDVLFGHFNOHVVVLQJOHPDVWHGFOLQNHUEXLOW RDUV0RVW/DNHIRONDUHIDPLOLDUZLWKLWVGHVFULSWLRQDV /DNHWRZQGHVLJQFRPPRQDOVRWRWKHFQHDUUDDQGPHUQDF DUHVXOWRIFRQWDFWZLWKULYHUUDWVDLORUVHYHQLIIHZKDYH 7ZHQW\IHHWORQJZLWKD EHDPDQGD IUHHERDUGWKH DFWXDOO\VHHQVXFKDYHVVHO YHU\ OLJKW WKLUUXF LV SRSXODU DPRQJVW (VJDURWK·V YLVFHUDV 6RPH XVH D WULDQJXODU ODQWHHQ VDLOLQVWHDGRIWKHPRUHW\SLFDO OXJVDLO $ QRUPDO FUHZ LV VL[ KDQGV

5,9(5%$5*( 7KLVULYHUEDUJHLVW\SLFDORI WKH 'RUZLQLRQ FUDIW WKDW SO\ WKHPHUFKDQWWUDGHXSDQGGRZQ WKH 5LYHU 5XQQLQJ DQG WKH 5HGZDWHU DOWKRXJK VXFK YHV VHOV DUH UDUH DERYH WKH /LQGDO IDOOV 7KLUW\VHYHQ IHHW ORQJ ZLWKDEHDPRI DQGDIUHH ERDUGRI WKHEDUJHLVDIODW ERWWRPHGFUDIWZLWKDURXQGHG

I`m\i9Xi^\

%8,/',1*6,1 /21'$527+%< /,1'$/ 7KH RQFH VL]HDEOH FRPPXQLW\ RI /RQGDURWKORFDWHGDORQJDSRUWDJHWUDFN E\ WKH PDJQLILFHQW DQG SLFWXUHVTXH

/LQGDOIDOOVKDVGZLQGOHGLQWKHZDNHRI WKH3ODJXHIURPRYHULQKDELWDQWVWRD PHUH 0RVW RI WKHVH DUH HPSOR\HG HLWKHUE\9LORULFDQG:RHGZ\QWKHVHOI SURFODLPHGOHDGHUVRIWKHVKULQNLQJFRP PXQLW\RUE\WKHUXQGRZQ'~LDLDQ1R ´0LVW\ 9LHZµ 7DIHQ 7KH PDMRULW\ RI IRON UHVLGH LQ PDNHVKLIW VHPLFROODSVHG YHUVLRQV RI RQFHVWDQGLQJ VWRQH VWUXF WXUHV RU LQ ZDWWOHDQGGDXE KXWV EXLOW DWRSWKHUXLQVRISUHYLRXVHGLILFHV9LORULF :RHGZ\Q WKHLU ZHDOOL DQG KHQFKPHQ DSSUHQWLFHVDUHDQRWDEOHH[FHSWLRQWRWKLV WKH\KDYHWDNHQXSUHVLGHQFHLQWKHGHFD\ LQJ&LWDGHORIWKH0DHVWDV

&,7$'(/2)7+( 0$(67$6

7KHRQFHJUDQGOLPHVWRQHVWUXFWXUHLV PRGHOOHGXSRQ'~QDGDQDUFKLWHFWXUHZLWK DJUDQGFROXPQHGFHQWUDOKDOORIFRQVHFX WLYHDUFKHGED\V7KHZDOOVYDU\IURP WR WKLFNZLWKILUHSODFHVVHWLQWRWKHPWKH JDEOHG URRI LV FRYHUHG ZLWK VODWH QRZ IDOOLQJ RII LQ PDQ\ SODFHV 7KH PDLQ EXLOGLQJLVWZRVWRULHVZLWKDWKUHHVWRU\WRZHUULVLQJRYHU WKH ZHVW HQG·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·V 0DHVWDEXWLVQRZRFFXSLHGE\9LORULF:RHGZ\QDQG WKHLUILYHZHDOOL2QHRI9LORULF·VWKXJVNHHSVZDWFKKHUH HDFKHYHQLQJLQ IRXUKRXUVKLIWV

:`kX[\cf]k_\ DX\jkXj# cfn\i]cffi

:`kX[\cf]k_\ DX\jkXj# lgg\i]cffi

.LWFKHQ 6WDLUV6SLUDOVWDLUOHDGXS WR WKH SULYDWH FKDPEHUVRI 9LORULFDQG:RHGZ\Q 'LQLQJ +DOO :HOO IXU QLVKHGZLWKWDSHVWULHVDQGD ODUJHSROLVKHGRDNWDEOH :HDOOL·V&KDPEHU)LYH ERQGVHUYDQWV VKDUH WKHVH PHDJHUTXDUWHUV 3ULY\ 6WRUDJH 5RRP )LUH ZRRG DQG IRRGVWXIIV 'RRUV 7ZR LURQ EDQGHGGRRUVZLWKODWFKHV ZKLFK DUH +DUG WR SLFN OHDG WR WKH DUFDGHG KDOOZD\ERUGHULQJWKHFRXUW \DUG $UFDGH 2QO\ D KDOI KHLJKWZDOOVHSDUDWHVLWIURP WKHJDUGHQ2QHRI9LORULF·V WKXJV LV VXSSRVHG WR NHHS ZDWFKKHUHHDFKHYHQLQJEXW LQFROGHUZHDWKHUKHXVXDOO\ VSHQGV LW LQGRRUV ZLWK KLV FRPUDGH DW WKH %DOFRQ\ *DUGHQ &RXUW\DUG 1RZWRWDOO\RYHUJURZQEXW SURYLGLQJJRRGFRYHU)RU DJHUVFDQVWLOOILQGFRPPRQ JDUGHQKHUEVDQGYHJHWDEOHV DPLGVW WKH WDQJOHG XQGHU JURZWK DQG VHYHUDO XQSUXQHGSROODUGDSSOHWUHHV VWLOO EHDUIUXLW %DUUDFNV2QFHXVHGWRERDUGWKHWRZQGULKWHQWKLV FKDPEHULVQRZDEDQGRQHG 3ULY\ %DUUDFNV6WRUDJH 2QFH XVHG WR ERDUG WKH WRZQ GULKWHQWKLVFKDPEHULVQRZXVHGWRVWRUHVPXJJOHGJRRGV HQURXWHWRDQGIURP(VJDURWK %DUUDFNV/DERUDWRU\ 2QFHXVHG WR ERDUG WKH WRZQ GULKWHQ WKHVH FRQQHFWLQJ FKDPEHUV QRZ VHUYH DV :RHGZ\Q·V ODE 7DEOHV DQGVKHOYHV DUHOLQHG ZLWK MDUV FRQWDLQLQJ DOO VRUWV RIEL]DUUH KHUEV SRXOWLFHV DQG DO FKHPLFDO LQJUHGLHQWV HJ H\H RIQHZW WRQJXH RIIURJ

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·V&KDPEHU&OXWWHUHGZLWKILQHIXUQLVKLQJV LQFOXGLQJ D GHVN DQG D KXJH IHDWKHU EHG SLOHG ZLWK OX[XULRXV IXUV ,QFULPLQDWLQJ YHOOXP VKHHWV LQ WKH GHVN ORFNHGDQG+DUGWRSLFN LQGLFDWHWKHPLOOHU·VUROH LQVPXJJOLQJDFWLYLWLHV7KH\DUHSDUWLDOO\ZULWWHQLQFRGH $ VWRXW FKHVW ORFNHG 9HU\ +DUG WR SLFN DQG WUDSSHG ZLWK D QHHGOHFRDWHG ZLWK 2QGRNDPED+DUG WRGLVDUP KROGVVSZRUWKRIFRLQJHPVDQG MHZHOU\$UDFNDJDLQVWWKHZDOOKROGVVSRIYLQWDJH 'RUZLQLRQ ZLQHVNLPPHG IURP VPXJJOLQJDFWLYLWLHV$ VHFUHW GRRU LQ WKH QRUWKHUQ ZDOO 9HU\ +DUG WR SHUFHLYH OHDGVGRZQDQDUURZIOLJKWRIVWDLUVWRH[LWQHDU WKHGRRUEHORZDW :RHGZ\Q·V &KDPEHU ,Q FRQWUDVWWR KHUEURWKHU·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·VWKXJVVRPHWLPHVWZR³VHHWKH$UFDGH GHVFULSWLRQ DW NHHSV ZDWFK IURP WKH VRXWKHUQ EDOFRQ\KHUHHDFKHYHQLQJ :HQGULKW·V 4XDUWHUV7KXJV· 4XDUWHUV 1RZ RFFXSLHGE\9LORULF·VILYHKHQFKPHQ 6WDLUV6SLUDOVWDLUVOHDGXSWRWKHWRZHUFKDPEHU :HQGULKW·V4XDUWHUV1RZXQXVHG7KHWKXJVZKR OLYHGRZQVWDLUVEHOLHYHWKLVSODFHLVKDXQWHG

/$.(72:1,1 27+(57,0(6 /DNHWRZQ FKDQJHV YHU\OLWWOH LQ EDVLFSODQ IURPWKH WLPHZKHQLWLVILUVWFRQVWUXFWHGRQDSODWIRUPRYHUWKH /RQJ /DNH DURXQG7$ XQWLO LWV GHVWUXFWLRQ E\ 6PDXJLQ7$$WWKDWWLPHLWLVUHEXLOWDVDVPDOOHU UHFWDQJXODUSODWIRUPZLWKMXVWRQHFHQWUDO 0DUNHW 3RRO $IWHU6PDXJ·V ILQDO PRUWDO DVVDXOWRQ WKHWRZQ LQ7$ (VJDURWKLVUHEXLOWDWKLUGWLPHIXUWKHUQRUWKDORQJ WKHZHVWHUQVKRUHRIWKHODNH*DPHPDVWHUVZLVKLQJWRUXQ DFDPSDLJQVHWDIWHUWKLVWLPHFRXOGXVHWKHSODQ RIWKH VHWWOHPHQW LQFOXGHG RQ WKHFHQWUDO LQVHUW RI/DNHWRZQ DOWKRXJKLWVSODFHPHQWLQWKH/RQJ/DNHZRXOGFKDQJH $IWHU WKH 'ZDUYHV DUULYH DW (UHERU LQ 7$ (VJDURWK WKULYHV ZLWK DQ LQFUHDVLQJ YROXPH RI WUDGH HQWHULQJZKDWPDQ\ZRXOGFDOOLWV´*ROGHQ$JHµEHWZHHQ DERXW7$ DQG 7KH %DOFKRWK SUHVHQFH LQ 5KRYDQLRQWKHUHPRYDORIWKHVHDWRIWKH.LQJRI'XULQ·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´RUGHUµ GXULQJWKHZLQWHU:LWKDGHTXDWHILUHZRRGRUSHDWIXHO HQIRUFHG E\ WKH :DLQULGHUV LV YLQGLFWLYH DQG DUELWUDU\ D ZHOOVKHOWHUHGWKDWFKHGFRWWDJHFDQPDLQWDLQDWRDVW\ 7KLVLVDQH[FLWLQJWLPHIRUDJDPHPDVWHUZKRZLVKHVWR LQWHULRUWHPSHUDWXUHDERYH)LQWKHILHUFHVWZLQWHUV UXQ D FDPSDLJQ IRU FKDUDFWHUV V\PSDWKHWLF WR WKH 1RUWKURQV³DVSOD\HUFKDUDF WHUVFRXOG ILQGPXFK WRGR DV UHEHOV SUHSDULQJ IRU WKH 1RUWKURQ5HYROWRI7$ 8QGHUJURXQG VXSSRUW IRU WKH 1RUWKURQ UHVLVWDQFH LV ZLGH VSUHDG DQG JXHULOOD DFWLYLWLHV DJDLQVW WKH :DLQULGHUV LQ WKH 1RUWKDUHGLUHFWHGE\WKHGLV SODFHG .U\WKpRG KHLU :HQGHOLQJ

NXkkc\$Xe[$[XlY ZfkkX^\

NXkkc\$Xe[$[XlY ZfkkX^\

K_\Yl`[`e^ f]CXb\$kfne

)ROORZLQJ DUH VRPH SRVVLEOH DGYHQWXUHV VHYHUDO RI ZKLFKFRXOGDOVREHSOD\HGDWWKHWLPHRIWKH:DURIWKH 5LQJLQ7$ZKHQPRVW/DNHIRONDUHEHVLHJHG LQ(UHERUDQG(VJDURWKLVRFFXSLHGE\(DVWHUOLQJV ³3OD\HUFKDUDFWHUVVHUYLQJDVUHEHODJHQWVRSHUDWH DVVSLHVDVVDVVLQVRUFRRUGLQDWRUVIRUWKHUHEHO OLQNHG%RHGE\OJDVVPXJJOLQJRSHUDWLRQVZLWKLQ /DNHWRZQ ³3OD\HUFKDUDFWHUVDFWLQJDVUHEHOVFRXWVDUHWR UHFRQQRLWHUWKHFDYHVEHQHDWK(UHERUDVD SRWHQWLDOVLWHIRUDVHFUHWUHEHOEDVH ³3OD\HUFKDUDFWHUVDFWLQJDVUHEHOEDFNHGRXWODZV SUH\XSRQ(DVWHUOLQJPHUFKDQWVDQGWKHLU 1RUWKURQFROODERUDWRUVSO\LQJUHJLRQDOFDUDYDQ URXWHVDQGVKLSSLQJODQHVE\FROOHFWLQJZHDOWK DQGUHGLVWULEXWLQJLWWRWKHUHEHOVDQGVXIIHULQJ UXUDO1RUWKURQV

³3OD\HUFKDUDFWHUVDFWLQJDVHQYR\VIRUWKH 1RUWKURQUHVLVWDQFHPXVWYLVLWWKH(OYHQNLQJ DQGVROLFLWFRYHUWDLG ³3OD\HUFKDUDFWHUVDFWLQJDVHQYR\VIRUWKH 1RUWKURQUHVLVWDQFHPXVWYLVLWDQGVROLFLWFRYHUW DLG IURP*RQGRULDQFRQWDFWVYLVLWLQJ :LOGHUORQG ³3OD\HUFKDUDFWHUVVHUYLQJDVUHEHODJHQWVDUHWR HVFRUWVHFUHWDUPVVKLSPHQWVDQGRWKHUDLGIURP WKHLUVRXUFHHLWKHUWKH:RRGHOYHVRU *RQGRULDQFRQWDFWV WRKLGGHQUHEHOVWURQJKROGV ³3OD\HUFKDUDFWHUVVHUYLQJDVUHEHODJHQWVDUH LQYROYHGLQUXQQLQJDUPVXSWKH&HOGXLQLQ FRQMXQFWLRQZLWK(VJDURWK·V%RHGE\OJDV ³3OD\HUFKDUDFWHUVDFWLQJDVUHEHOVFRXWVDUHWR HVWDEOLVKDKLGGHQUHEHOEDVHDWDQ\RIDVHULHVRI ORFDWLRQVWKURXJKRXWWKHUHJLRQHJWKH/DQJ 0DULVKWKH:LGX0DULVKWKH HDVWHUQHDYHVRI0LUNZRRGWKH FDYHVDORQJWKHHDVWHUQVKRUHRI WKH/RQJ/DNHVHH6HFWLRQ HWF ³3OD\HUFKDUDFWHUVDFWLQJDV VHFUHWFRXULHUVIRUWKHUHEHOV PXVWUHOD\LPSRUWDQWPHVVDJHV EHWZHHQYDULRXVOHDGHUVZKLFK DUHYLWDOWRWKHFRRUGLQDWHG 1RUWKURQUHYROWSODQQHG WKURXJKRXW :LOGHUORQG

3(23/(2)127( 5(6,'(1762)(6*$527+ 0DQ\ RIWKH UHVLGHQWV RI(VJDURWK DUH GHWDLOHG EHORZZLWKD
%HDGDURIWUHDWVKLVZLIHDQGRQH\HDUROGVRQDQROGHU GDXJKWHUGLHG LQ WKH 3ODJXH OLNHJXDUGVPHQ XQGHU KLV FRPPDQG LQFDSDEOH RIGHPRQVWUDWLQJWHQGHUQHVV 3DU WLDOO\ DV D UHVXOW KLVWLPLG VSRXVH KDV UHWUHDWHG IXUWKHU IURPKLPDQGIURPHYHU\RQHHOVHVDYHKHUPDQLSXODWLYH PRWKHUDQGRYHUSURWHFWHGLQIDQW

0$(7+(/*$5

$OWKRXJKKHLVRQO\WKLUW\RQHWKHVHULRXV0DHWKHOJDU 2'$*$9,$ 1R´6KDUSWRQJXHGVSHDNHUµ DUDQJ\ LVDOUHDG\ 7KH0DHVWDRI/DNHWRZQKDVVHUYHGMXVWWKUHH\HDUVRI DOPRVW FRPSOHWHO\ JUH\ +H ZHDUV KLV KDLU DW VKRXOGHU KLVVHYHQ\HDUWHUPDQGKHUHPDLQVYHU\SRSXODU(OHFWHG OHQJWKKLVEHDUGZHOOWULPPHGDQGGUHVVHVOLNHDGDQG\ MXVWDIWHUWKHILUVWRQVODXJKWRIWKH3ODJXHEXWEHIRUHWKH ZLWKVXEWO\KXHGEXWHODERUDWHO\HPEURLGHUHGFORWKLQJ VFRXUJH KDG IRUVDNHQ (VJDURWK 2GDJDYLD 1R ´6XQ ILQHERRWVDQGSOHQW\RIUHGJROGMHZHOU\+HKLGHVKLV ULVHµ LVODUJHO\UHVSRQVLEOHIRUWKHFRQWLQXLQJH[LVWHQFHRI LQQDWHVXVSLFLRQEHKLQGDSRVHRIJRRGQDWXUHGDIIDELOLW\ WKHVHWWOHPHQWKDYLQJTXHOOHGWKHSDQLFDQGORRWLQJWKDW +LV RFFDVLRQDO ELWLQJO\ VDUFDVWLFFRPPHQWV VXJJHVW WKH WKUHDWHQHGWKHSODFHDQGQHJRWLDWHGZLWKWKH:RRGHOYHV SHUVRQDOLW\EHQHDWKWKLVIDFDGH WRREWDLQSUHFLRXVIRRGVWXIIVWKDWHQDEOHGLQKDELWDQWVWR 0DHWKHOJDUORYHVPXVLFDQGKLVSRVLWLRQDV7RZQ&ULHU VXUYLYHWKHZLQWHURI7$$QDWXUDOO\SHUVRQ WR ZKLFK KH ZDV DSSRLQWHG E\ 2GDJDYLD 2Q UDUH DEOHDQGFKDULVPDWLFIHOORZ2GDJDYLD·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´&URRNHG&XUY\µ WKHZ\UGZRPDQLV IDEXORXVO\ EHDXWLIXO FORDN RI'RJ :KHONG\HG YLROHW KXHG SXUSXUD 1R ´6LONVKRW 7DIIHWDµ VKRW WKURXJK WKHROGHVWUHVLGHQWRI/DNHWRZQDWQHDUO\RQHKXQGUHG ZLWK\HOORZWKUHDGDQGHPEURLGHUHGDWWKHKHPLQJROG \HDUV ROG 'HFDGHV DJR VKH ZDV WKH KHDG )LVNQDN\Q 7KHFORDNLVTXLWHYDOXDEOHDQGIDVWHQHGDERXW2GDJDYLD·V SULHVWHVVLQ(VJDURWK+XQFKEDFNHGZLWKVNLQOLNHOHDWKHU QHFNZLWKDKHIW\JROGDQGVLOYHUILEXOD+LVKDLUDQGEHDUG DQG GLVWXUELQJ PLON\ RUEV IRU H\HV VKH FXOWLYDWHV WKH DUH DJROGHQ EORQG WKDW PDWFKHV WKH XQGHUWRQHV RIKLV FUD]HG DSSHDUDQFH WKDW LQVSLUHV IHDU DPRQJ WKH WRZQV PDQWOHDQGKLVH\HVDUHWKHOLJKWEURZQRI/DNHWRZQ·V SHRSOH&KLOGUHQIOHHZKHQWKH\KHDUWKHILVKERQHVUDWWOH DJDLQVW KHUVWDII %RJDWXQJ DGRSWHG KHU QDPH IURP WKH ZRUQZRRGHQVWUHHWV VDUFDVWLFNHQQLQJZLWKZKLFKPDQ\/DNHIRONUHIHUWRKHU %($'$52) EHKLQGKHUEDFN &RQVLGHUHGWKHEHVWVZRUGVPDQLQ/DNHWRZQWKH &RPSOHWHO\ EOLQG WKH Z\UGZRPDQ UDUHO\ OHDYHV KHU DQG SRZHUIXOO\ EXLOW %HDGDURI 1R ´:DUOLNH 2QHµ VPDOOKRPHDQGHPSOR\VDQLQWHOOLJHQWVKRUWHDURZODV VHUYHVDV:HQGULKWFRPPDQGHURIWKH7RZQ*XDUG,Q KHUIDPLOLDUDQGKHUH\HV+HUDELOLW\WRIRUHVHHWKHIXWXUH KLV\RXWK KHVSHQWWLPHDV D ZDUULRUDQG VDLORURQ WKH LV OHJHQGDU\ EXW KHU EXVLQHVV DFXPHQ LV DOVR DQG IHZ $QGXLQ DOWKRXJK KLV WKLUW\HLJKW \HDUV KDYH VFDUFHO\ VWUDQJHUV ZKR VHHN KHUDGYLFH JHW WKHLU PRQH\·V ZRUWK WHPSHUHGKLVPLOLWDU\EHDULQJDQGZDUULRU·VIRQGQHVVIRU 7KH FRXQVHO VKH JLYHV LV LQYDULDEO\ FU\SWLF DQG VKH EDWWOH KHGLVSOD\V OLNHPRVW /DNHIRON DWDFWIXOGLSOR IUHTXHQWO\ UHVSRQGV WR TXHULHV XVLQJ YHQWULORTXLVP WR PDF\DQGUHFRJQL]HVWKHXVHIXOQHVVRIQRQYLROHQWLQWLPL PDNH LW DSSHDU DV LIKHU RZO (WHQOHD[ 1R ´6DOPRQ GDWLRQWDFWLFVLQPDLQWDLQLQJRUGHU+DQGVRPHZLWKOLJKW HDWHUµ SRVVHVVHVKHUYRLFH7KLVFRXSOHGZLWKKHUDELOLW\ EURZQ H\HV EUDLGHG GLUW\EORQG KDLU DQG DORQJJUH\ WR OLWHUDOO\VHHWKURXJK WKHRZO·VVKDUSH\HV KDV IXHOHG VSHFNHG EHDUG %HDGDURILV QRW HVSHFLDOO\ ZHOOURXQGHG UXPRUVWKDWVRPHWLPHDJRWKHEHDVWPLVWRRNKHUH\HVIRU EXWKHNQRZVKRZWRGRKLVMRE+LVLQWHJULW\LVEH\RQG 6SDUURZHJJVDQGKHUWRQJXHIRUDQ(HODQGVZDOORZHGDOO GRXEWWKHMXVWLFHKHPHWHVRXWLVKDUVKEXWVHOGRPXQIDLU WKUHH )RON VD\ WKDW KHUVRUFHU\ DOORZV KHU WR FRQWLQXH DQGDOWKRXJKIHZRIKLVPHQOLNHKLPWKH\DOOUHVSHFWKLV XVLQJWKHGHYRXUHGERG\SDUWV OHDGHUVKLS

6+,15,1& 7KHWKLUW\\HDUROG6KLQULQF1R´+LJK0DJHµ ZDV WKH H[WUDRUGLQDULO\ DSW SXSLO RI%RJDWXQJ·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³LWLVFRPPRQIRU)LVNQDN\Q FOHULFVWRUHPDLQVLQJOHIRUOLIH6KLQULQFGUHVVHVLQDORQJ ZDWHUEOXHWXQLFDQGWURXVHUVDQGFDUULHVDQHHOVNLQGUXP WRVLJQLI\KLVUHOLJLRXVUROH$ERXWKLVQHFNLVGUDSHGDQ H[SHQVLYHGHHSEOXHSXUSXUDVFDUIHPEURLGHUHGLQJUHHQ ZLWKILVKHHOVDQGIUHVKZDWHUPROOXVNV

*$(59,&&$ $SURPLQHQWDQGUHVSHFWHGLQGLYLGXDOZKRVHDGYLFHLV IUHTXHQWO\VRXJKW RQ DOO PDQQHUV RIKHDOLQJ *DHUYLFFD 1R ´%DWWOHILHOGµ ULYDOV 2GDJDYLD LQ SRSXODULW\ +HU VNLOOVDVDPLGZLIHDQGWKHKHDOLQJVKHHIIHFWHGGXULQJWKH 3ODJXH\HDUVLQVXUHKHUDIROORZLQJDPRQJWKH/DNHIRON DOWKRXJKKHUOHDGHUVKLSDQGGLSORPDWLFVNLOOVVWLOOQHHGWR EHKRQHG$VWKHOHHFKRUKHDOHUIRUWKHWRZQ·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´:LOG7DONµ LVDIDLUO\UHFHQWDUULYDOWR (VJDURWK EXW GXH WR KLV SKHQRPHQDO GLSORPDF\ DQG DFWLQJVNLOOV KH KDV VZLIWO\ ZRQ WKH WUXVW KLPVHOIRIWKH KLJKHVWRIILFLDOVRI/DNHWRZQ,QYLWHGWRDOOVRFLDOJDWK HULQJVRIDQ\FRQVHTXHQFHKHOGE\WKHWRZQ·VHFRQRPLF HOLWHWKH:RRGPDQMHVWHUFRPPDQGVDWWHQWLRQZLWKKLV MXJJOLQJDFUREDWLFDQWLFVVWRULHVDQGVFDWKLQJKXPRU+H VSHQGV PXFK RI KLV GD\ DFFRPSDQ\LQJ 2GDJDYLD DQG 0DHWKHOJDURQWKHLUDGPLQLVWUDWLYHURXQGV

$OHDQPDQLQKLVWKLUWLHVZLWKWRXVOHGFXUO\EURZQKDLU GRZQWRKLVDQJXODUVKRXOGHUVDQGVHYHUDOGD\VRIEHDUG JURZWK :RIIXQJGUHVVHV LQ DFOXPV\SDWFKZRUNWXQLF EULWFKHVFORDN DQGDIRROVFDSEHGHFNHG ZLWK EHOOV$Q DJHQWRIWKH1HFURPDQFHUKHVHHPVWKHFRPLFDQWLWKHVLV WRDFOHYHUDGHSWVS\EXWKLVGUROOHU\LVHQWLUHO\VWDJHG :RIIXQJLVDFWXDOO\DPHUFLOHVVNLOOHUZKRZLOOIXUWKHUKLV RZQ DGYDQFHPHQW LQ WKH UDQNV RIWKH 1HFURPDQFHU·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

*8'5,1& *XGULQF1R´:DUULRUµ LVRQHRIWKHILIWHHQFXLUODV ZKR FRPPDQG /DNHWRZQ·V JXDUG 7KH VROGLHU VSHQGV PRVW RIKLV GD\V PDQQLQJ WKH JDRO DQG SDWUROOLQJ WKH ZKDUIVKHDOVRVHUYHVDV(VJDURWK·VKDQJPDQDOWKRXJKKH ZHDUVDKRRGZKLOHDFWLQJLQWKLVODWWHUUROHVRKLVSRVLWLRQ LV QRW FRPPRQO\ NQRZQ 7KH EURDGVKRXOGHUHG WDQ VDQG\KDLUHG \HDU ROG LV HVVHQWLDOO\ D IDPLO\ PDQ VSHQGLQJ KLV HYHQLQJV DW KRPH ZLWK KLV ZLIH D &ODWK Z\UNHQGDVPHPEHUDQGGDXJKWHU

*87+:,1
&+/2'20,5$1'&+/27$5 7KHLGHQWLFDOWZLQV&KORGRPLU1R´6KLHOGMXGJHµ DQG&KORWDU1R´/LWWOH6KLHOG %XFNOHUµ VHUYHLQWKH GD\WLPH VKLIW RI WKH %ULGJH *XDUG 7KH \RXQJ WRZ KHDGHG JUHHQH\HG SDLU SOD\ DQ LPSRUWDQW UROH DV GULOO EDJSLSHUV DW WKH PRQWKO\ IDHUG WUDLQLQJ VHVVLRQV %RWK VSHQG PXFK RIIGXW\ WLPH DW WKH 9RGDJDUD]XQ ZKHUH &KORWDU KDV DQ RQDJDLQ RIIDJDLQ URPDQFH ZLWK WKH EDUWHQGHU$QQL

e2'25,& 7KHQLQHWHHQ\HDUROGVRQRI2GDYDFHUDQG%UXQHKDXW eRGRULF1R ´+RUVH/HDGHUµ LVD\RXQJZDUULRUZKR OLYHV ZLWK DQG ZRUNV LQ WKHWRZQ GULKWHQ7DQQHG DQG JROGHQKDLUHG ZLWK VWDUWOLQJ DTXDPDULQH H\HV eRGRULF OLNHKLVPRWKHUDQGVLVWHUVWXUQVKHDGVZKHUHYHUKHJRHV +HVKRZVWUHPHQGRXVSURPLVHDVDZDUULRUDQGVSHQGV PXFKRIKLVWLPHRXWRQWKHODNHSDWUROOLQJ$OUHDG\KLV VXSHULRUV KDYH PDUNHG KLP IRU DGYDQFHPHQW eRGRULF UHFHQWO\ EURNH RIID VHFUHW DIIDLU ZLWK WKH 9RGDJDUD]XQ HPSOR\HH*LVHOD 9250(15,& $SURPLQHQWPHUFKDQW.U\QRIDQHGIUHDKDUFRQFHUQHG ZLWKVKLSSLQJJRRGVRIDOOYDULHWLHVXSDQGGRZQWKH5LYHU 5XQQLQJ 9RUPHQULF 1R ´*UHDW /RUGµ RZQV WKUHH FQHDUUDV1R´5LYHU6KLSVµ DQGLVRQHRIWKHULFKHVWDQG PRVWLQIOXHQWLDOPHQLQ(VJDURWK7KHOHDGLQJPHUFKDQW DOZD\V GUHVVHV LQ ULFKO\HPEURLGHUHGFORWKLQJ ILQHMHZ HOU\DQGFDUULHVDJROGKLOWHGEURDGVZRUG,QPDWWHUVRI EXVLQHVVKHSD\VOLWWOHKHHGWRPRUDOLW\RUOHJDOLW\DQGKLV VLOYHU KDV JUHDVHG WKH SDOPV RIPRUH WKDQ RQH FRUUXSW GULKWHQRIILFLDO9RUPHQULFLVPDUULHGWRDVHOIDEVRUEHG ZRPDQWZHQW\\HDUVKLVMXQLRUWKH\KDYHWZRWKRURXJKO\ VSRLOHGFKLOGUHQERWKXQGHUWHQ\HDUVROG )5($081' $Q HVWDEOLVKHG PHUFKDQW DQG ORQJVWDQGLQJIULHQG RI WKH0DHVWD)UHDPXQG1R´2SHQKDQGHGµ LV.U\QRI RQHWKHILYHPHUFKDQWHGIUHDKLUDQGDOZD\VNHHSVDKDQG LQWKHSROLWLFDOOLIHRI(VJDURWK8SXQWLOWKH3ODJXHKH ZDV D ERLVWHURXV DQG MROO\ GULQNLQJ FRPSDQLRQ DQG D IUHTXHQW SDWURQ RI2GDYDFHU·V 9RGDJDUD]XQ )UHDPXQG ZDVXWWHUO\FUHVWIDOOHQKRZHYHUZKHQKLVZLIHKLVPRWKHU KLV EURWKHU DQG IRXU RI KLV FKLOGUHQ SHULVKHG LQ WKH HSLGHPLF %HLQJ D PDQ ZKR NHHSV KLV JULHIWR KLPVHOI )UHDPXQGUHPDLQVDWDONDWLYHDQGDFWLYHWRZQILJXUHEXW KLV ORVV KDV DIIHFWHG KLP GHHSO\³KH VHOGRP MRNHV RU VPLOHV DQ\ ORQJHU 7KH PHUFKDQW GRWHV XSRQ KLV RQO\ UHPDLQLQJGDXJKWHU%ORVRPDDQGGULQNVYHU\OLWWOHQRZ DVLGHIURP ZKDW KH WDNHV ZLWK KLV PHDOV VLQFH DOFRKRO PDNHVKLPPRRG\ )UHDPXQGRZQVWZRFQHDUUDV6FUHHYDU1R´6PRRWK 6ZLIW0RYHUµ DQG%DUGD1R´%HDNHG6KLSµ RQFHKH RZQHGWKUHHEXWWKHWKLUGZDVEXUQHGLQWKHSDQLFMXVW DIWHU WKH ILUVW RXWEUHDNV RI 3ODJXH VZHSW WKURXJK WKH UHJLRQ +H FRQFHUQV KLPVHOIPRVWO\ ZLWK WUDGH LQ WKH VRXWKHUQ/RQJ/DNHDQGRQWKH&HOGXLQ5LYHU$V/DNH WRZQEHJLQVWRVHWWOHRQFHPRUHLQWRLWVSURVSHURXVSUH 3ODJXH URXWLQH )UHDPXQG QRZ DJH IRUW\VL[ DQG YHU\ DORQHKDVIHOWWKHDEVHQFHRIKLVOLYHO\VLVWHU+UHRZDOGD PRUHVWURQJO\RIODWHDQGKDVWDNHQDJUHDWLQWHUHVWLQWKH VDIHUHWXUQRIWKHUHIXJHHVWR /DNHWRZQ

6WDQGLQJ )UHDPXQGLVWDOOHUWKDQDYHUDJHEXWLQ WKH\HDUVIROORZLQJWKHSHVWLOHQFHKHVWDQGVDELWVWRRSHG 'UHVVHGDOZD\V LQSUDFWLFDO EXWEHDXWLIXOO\HPEURLGHUHG WXQLFVDQGERRWVRIVXSSOH/RVUDQGLUKLGHWKHPHUFKDQW LV EURDG VKRXOGHUHG ODUJHERQHG DQG UHDVRQDEO\ ZHOO PXVFOHG EXWQRWRYHUZHLJKWIHZ LQ WKH \HDUV DIWHUWKH 3ODJXHDUH +LVGLUW\EORQGKDLULVVWUHDNHGJUD\OLNHKLV OHQJWK\ EXW ZHOOJURRPHG EHDUG KLV ODUJH H\HV DUH DQ LQWHOOLJHQWSDOHEOXH

%(257129 $KDOHZDUULRUDQGDGHSWVKLSFDSWDLQ%HRUWQRY1R ´%HDUFXE%ROGDW%LUWKµ6´%HDU+ROORZµ KDVVHUYHGDV FDSWDLQRI)UHDPXQG·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´)ORZHUµ LVDSDPSHUHGDQGSURWHFWHGFKLOG-XVWHLJK WHHQVKHKDVPDQDJHGWKHORVVRIPRVWRIKHUIDPLO\ZLWK UHPDUNDEOHUHVLOLHQFHPHQWDOO\VKHLVPXFKPRUHKHDOWK\ WKDQ KHU IDWKHU 6WDQGLQJ WDOO VKH ZHDUV KHU ILQH VWUDLJKW VLHQQD KDLU ORQJ EHQHDWK D SUHWW\ HPEURLGHUHG ZLPSOHDQGWLHVDEULJKWO\FRORUHGVFDUIDURXQGKHUQHFN +HUIDWKHUKDVSURYLGHGKHUZLWKYDOXDEOHMHZHOU\WULQNHWV LQFOXGLQJ)LPILQGLO³VHH6HFWLRQ DQGVHYHUDO ILQH VKLIWV EXWWKHEUHDWKWDNLQJORYHOLQHVV RIKHUURXQGIDFH RZHVPRUHWRVSDUNOLQJKD]HOH\HVDQGKLJKFKHHNERQHV WKDQLWGRHVWRWKHJROGILOLJUHHHDUULQJVWKDWIUDPHLW6K\ DURXQG QHDUO\ HYHU\RQH EXW KHU FORVH IULHQG 6KDJHOGD %ORVRPDLVQRWH[DFWO\WKHUHVHUYHG\RXQJODG\KLVIDWKHU DQGRWKHUVWDNHKHUWREH6KHHPXODWHVWKHVOLJKWO\ROGHU 6KDJHOGD ZKRVH VRSKLVWLFDWLRQ VKH DGPLUHV %ORVRPD VSHQGVWLPHKHOSLQJRXWDWWKH9RGDJDUD]XQDQG%UXQHKDXW LVYHU\IRQGRIKHU6KHKDUERUVDVHFUHWFUXVKRQ6KDJHOGD·V KDQGVRPHROGHUEURWKHUeRGRULF

9,&/$) 7KH\HDUROGVRQRI+UHRZDOGD9LFODI1R´:DU 6XUYLYRUµ LV D QDWXUDO RXWGRRUVPDQ DQG D EXGGLQJ ZDUULRU+HIDQFLHVKLPVHOIDVFRSEXWKLVGHVLUHLVJUHDWHU WKDQKLVDELOLW\+HLVTXLWHJRRGORRNLQJDQGKLVDUWLVWLF SRVWXULQJ KHOSV DWWUDFW WKH DWWHQWLRQ RI\RXQJ ZRPHQ LQFOXGLQJ$XGWKHGDXJKWHURI%UXQHKDXWDQG2GDYDFHU +LV FRXVLQ %ORVRPD DQG KHU FRQVWDQW FRPSDQLRQ 6KDJHOGDVSDUHQRWKLQJLQWKHLUDWWHPSWVWRULGLFXOHKLP 9LFODILVELJIRUKLVDJHZLWKORQJGLUW\EORQGKDLUEOXH H\HVDQGDEURDGMDZFRYHUHGZLWK\HOORZIX]]

5,*817+$ 5LJXQWKD1R´,PSRUWDQW0DWWHUµ LV.U\QRIDVKLS PHUFKDQWHGIUHDKDU7KH 5DYHQKDLUHG/DNHZRPDQ WUDGHVPRVWO\FORWKDQGG\HVZLWKKHUWZRFQHDUUDVKHU GUHVVUHIOHFWVWKLV6KHLVWKLUW\QLQHVLQJOHDQGLQWHQGVWR VWD\WKDWZD\

$17+$5,6 $QWKDULV1R´.LQVPDQ"µ LVDUHWLUHG(VWDUDYsZDU ULRUZKRVHUYHGLQWKH$QJPDUHDQDUP\DVD\RXWK$IWHU WZRHLJKW\HDUWHUPVRIVHUYLFH KHZDVPXVWHUHGRXWDW WKLUW\WKUHHDQGEHFDPHDQLQGHSHQGHQWWUDGHU0DNLQJ KLVZD\HDVWDORQJWKH(DVWZHJ$QWKDULVVHWWOHGWHPSR UDULO\LQ'DOHEXWHYHQWXDOO\PRYHGWRWKHOHVVFODQQLVK /DNHWRZQ1RZKHWUDGHVSULPDULO\ZLWKWKH1HQHGDLQ RIWKH$QGXLQYDOOH\WKHHDVWHUQPRVW(VWDUDYsYLOODJHVLQ WKH 1DQ 0LWKOLQ 6 ´*UH\PHUH 9DOOH\µ DQG 'ZDUI KROGVLQWKH,URQ+LOOV 7KHFDUDYDQPDVWHULVSRZHUIXOO\EXLOWDQGELJDW +LVIHDWXUHVDUHURXJKDQGZHDWKHUEHDWHQKLVJUH\H\HV LF\FROGDQGDORQJVZRUGVFDUUXQVDFURVVKLVIRUHKHDG DQGXSEHQHDWKKLVODQNEURZQKDLU

*87+/$) 2QHRIWKHPDQ\FRRSHUV LQ (VJDURWK*XWKODI1R ´:DU6RQJ9DOXDEOH:DUULRUµ KHDGVWKH%\GHQERWWDQ $*,/8/) 1R ´7XE )L[HUVµ FRRSHUV· DVVRFLDWLRQ $Q HOGHUO\ $VFKHPLQJWKLHYLQJZUHWFKRIWKHZRUVWVRUW$JLOXOI /DNHPDQ RIILIW\RQH KH KDV D VOLJKW KXQFKEDFN DQG 1R ´:ROIKLQGHUHUµ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·V ZLIHSHULVKHG LQWKH LUULWDWLQJKODHVWLQJDV1R´,PSRUW7ROOVµ $JLOXOIKDVDQ 3ODJXHEXWKHKDVILYHJURZQFKLOGUHQWZRRIKLVVRQVDUH H[FHOOHQW PHPRU\DQGNHHSVPRVWRIKLVUHFRUGVHVSH DOVRFRRSHUV FLDOO\WKRVHRITXHVWLRQDEOHOHJDOLW\ LQKLVKHDG6LQJOHDW 6,*(%(257$ WKLUW\IRXUKHKDVPDGHRYHUWXUHVWR5LJXQWKDZKRILQGV 6LJHEHRUWD1R´7ULXPSKDQWµ KHDGVDQRWKHURIWKH KLPWHGLRXVDQGVPDOOPLQGHG IRXU FRRSHU HGIUHDKLU WKH %\UODE\WODV 1R ´%DUUHOPDNHUVµ $PELWLRXVDQGVNLOOHGDWKHUFUDIWWKH 7+$/e2/6(1 IRUW\IRXU\HDUROGKDUERUVDQROGUHVHQWPHQWIRU6ZHUWOLQJ 7KDOeROVHQ1R´9LWXRXV6RQRIeROµ DSURPLQHQW DQGFRQWLQXDOO\IXHOVWKHILHUFHULYDOU\WKDWKDVGHYHORSHG FDUDYDQPHUFKDQWRIIRUW\HLJKWDQGDQHGIUHDKDUPHPEHU EHWZHHQWKHLUWZRDVVRFLDWLRQV LQJRRGVWDQGLQJKDVPDQDJHGWRUHDSTXLWHDIRUWXQHIRU KH LVRQH RIWKH IHZ PHUFKDQWV ZKR UHJXODUO\VSRQVRUV 0(529(&+ WULSVWKURXJK0LUNZRRGDORQJWKH2OG)RUHVW5RDG2I *HQHUDOO\ D UHVHUYHG PDQ 0HURYHFK 1R ´:DWHU H[FHSWLRQDO VL]H WKHWUDGHUXVHV KLV KHLJKWRI KLV ZD\µ VHHPVDQXQOLNHO\FDQGLGDWHIRU.U\QRIWKH7XQQH ULYHWLQJEODFNH\HVDQGKLVEXVK\EODFNKDLUDQGEHDUGWR FUDIWDV1R´7XQ%XLOGHUVµ FRRSHUV·HGIUHDKDUEXWKLV JRRGHIIHFWLQKLVEXVLQHVVGHDOLQJVDQGIHZZRXOGGDUH IHOORZFUDIWVSHRSOHUHVSHFWKLVMXGJHPHQWDQGVNLOO7KH WRVZLQGOHKLPVHH,&(·V'HQL]HQVRIWKH'DUN:RRGIRUPRUH DXEXUQKDLUHGIRUW\VHYHQ\HDUROGLVDELWRIDQRGGLW\IRU GHWDLOV KHPDLQWDLQVDFORVHIULHQGVKLSZLWKVHYHUDO5DIWHOYHVDQG LVDFTXDLQWHGZLWKERWK2KWDUDQG&DPWKDOLRQ)RONVVD\ 527+$$5 0HURYHFKFRXOGEXLOGDZLQHEDUUHOIDVWHUWKDQWKH(OYHQ 5RWKDDU 2QH/HJ KDV VXSHUYLVHG VKLSSLQJ IRU 7KDO NLQJ·VUR\DOFRXUWFRXOGHPSW\LW$VNLOOHGGLSORPDWDQG eROVHQIRUILIWHHQ\HDUV$QDGHSWZDUULRUDQGFRQVFLHQ DGPLQLVWUDWRU 0HURYHFK KDV KHDGHG WKH 7XQQHFUDIWDV WLRXVFDUDYDQPDVWHUKHORVWWKHORZHUSDUWRIKLVULJKWOHJ IRUILIWHHQ\HDUV+LVDQHFGRWDODVVRFLDWLRQVSHHFKHVZKLOH LQD*REOLQDPEXVKEHQHDWKWKHHDYHVRI0LUNZRRGVRPH VXUSULVLQJO\ RXW RI FKDUDFWHU DUH OHJHQGDU\ IRU WKHLU \HDUVEDFNDQGQRZVSRUWVDZRRGHQ OHJ$ :RRGPDQ KXPRU ZKRKDVOLYHGLQ/DNHWRZQIRUWZHQW\\HDUV5RWKDDUVDZ KLV /DNHZRPDQ ILDQFp IDOO LOO ZLWK WKH SODJXH DQG GLH ZKLOHMRXUQH\LQJWRUHODWLYHV LQWKH$QGXLQYDOOH\7KH JUHHQH\HGUHGKHDGKDVDOZD\VKDGDVHULRXVDQGUHVHUYHG GHPHDQRUVLQFHWKH3ODJXHLWLVHYHQPRUHVRVHH'HQL]HQV RIWKH'DUN :RRGIRUPRUHGHWDLOV

6:(57/,1* 6ZHUWOLQJ1R´7LWODUNµ WKHVRQRID ILVKHUPDQ LV UHODWLYHO\ \RXQJ DW WKLUW\ RQHWREH.U\QRIWKH %\UHOE\OGDV1R ´%DUUHOPDNHUVµ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

*26+$)2& $ VNLOOHG DUWLVDQ ZKR KHDGV WKH +XGDQ E\OGDV1R´+RXVH%XLOGHUVµ *RVKDIRF1R ´*RVKDZNµ WKH &DUSHQWHU KHDGV WKH ODUJHVW FRQ VWUXFWLRQ FUHZ LQ /DNHWRZQ 7KRXJK VRPHWKLQJ RID GLVFLSOLQDULDQKHGRHVUXQDVXFFHVVIXOEXVLQHVVGXHWRKLV HQHUJ\DQGHQWKXVLDVP ,W LVFRPPRQWRVHHWKHWKLUW\ HLJKW\HDUROGKDQJLQJQLPEO\RIIWKHVLGHRIDEXLOGLQJ 6$+$/, D OHDWKHU EHOW RIWRROV VOXQJ DERXW KLV ZDLVW VKRXWLQJ 6DKDOL1R´:LOORZ\µ LVDWZHQW\RQH\HDUROGWDO RUGHUVWRKLVDVVLVWDQWVDQGDSSUHQWLFHVEHORZ$IULHQGRI HQWHGDUWLVWZKRPDNHVDEULVNEXVLQHVVDVWKHRQO\VLJQ 6ZHUWOLQJWKHWZRHQMR\SOD\LQJPXVLFWRJHWKHU SDLQWHUDQGFDUYHULQ(VJDURWK6KHLQKHULWHGPDQ\RIKHU FXVWRPHUV IURP KHU PRWKHU ZKR GLHG LQ RIWKH 2'$/,1'$ SODJXH $ZDLQZULJKW ZKRVSHQGVPRVWRIKHUWLPHUHSDLULQJ WKHZDJRQVRIPHUFKDQWV2GDOLQGD1R´)LUH6KLHOGµ +<*(*5,0 WKH.U\QRIWKHODUJH :RGXFUDIWDV1R ´:RRGZRUN +\JHJULP 1R ´)LHUFH 2QHµ LV D FUXVW\ ZHDWKHU HUVµ HGIUHDKDULVQRWHGIRUKHUFOHDUYRLFH6KHDOVRKHDGV EHDWHQ DQG JUL]]OHG PDQ RI VL[W\RQH \HDUV DQG WKH DVLQJLQJJURXSRI:RGXFUDIWDVPHPEHUVWKDWSHUIRUPV SDWULDUFKRIWKHKXJHYLVFHUDV1R´)LVKHUIRONµ HGIUHDKDU DWYDULRXVSXEOLFIXQFWLRQV +LVGHHSVHWH\HVDUHEOXHKLVORQJVLOYHUJUH\KDLUDQG EHDUGDUHEUDLGHGLQWRPDQ\VPDOOVWUDQGVDQGKLVVOLJKWO\ *1251 $WDOHQWHGPXVLFLDQLQKLVRZQULJKWWKHPRRG\*QRUQ VWRRSHGEXWVWLOOVWURQJ IUDPHLVVXSSRUWHG E\D 1R´6RUURZµ KDVFRPELQHGKLVWZRSDVVLRQV³PXVLF ZRRGHQ OHIW OHJ IURP WKH WKLJK GRZQ
9fXkZfd`e^ `ekfCXb\$kfne

%(277$:(%%$ 2QH RIWKH PRVW SURPLQHQW ZRPHQ LQ /DNHWRZQ %HRWWD:HEED1R´3URPLVLQJ:HDYHUZRPDQµ KHDGV WKHULFKDQGSROLWLFDOO\SRZHUIXO9HEEHUDV1R´:HDY HUVµ DVVRFLDWLRQ $V D \RXWK VKH VHUYHG SDUW RI KHU DSSUHQWLFHVKLS ZLWK D :RRGHOYHQ PLVWUHVV DQG KHU SURILFLHQF\ZLWKWKHORRPUHIOHFWVWKLV6KHDOVRSRVVHVVHV DOHJDF\WRWKDWDSSUHQWLFHVKLSDIDEXORXVORRPWKDWREH\V KHUYHUEDOFRPPDQGV%HRWWDQRZILIW\WKUHHUHVLGHVLQ RQHRIWKHJUHDWKRXVHVRYHUORRNLQJWKHQRUWKHUQ:RHWVDOD ZLWKKHUKXVEDQGZKRDVVLVWVLQWKHERRNNHHSLQJ WZR GDXJKWHUVDVRQLQODZDQGRQH\RXQJHUVRQ 811 8QQ LV .U\Q RI WKH JHQHUDO &ODWKZ\UNHQGDV 1R ´&ORWK :RUNHUVµ HGIUHDKDU 3RVVHVVHG RI LQFUHGLEOH SHUVHYHUDQFHWKHIRUW\VL[\HDUROGVLQJOHKDQGHGO\PDQ DJHVWKHDGPLQLVWUDWLYHGXWLHVRIKHUDVVRFLDWLRQDQGVWLOO ILQGV WLPHWRRSHUDWHKHURZQZRUNVKRSZLWKWKHKHOSRI DGDXJKWHU +(5(:8/) $ SHUVRQDO VXUYLYRU RI WKH 3ODJXH +HUHZXOI1R ´:DUULRUµ VWLOOKDVSRFNPDUNVFDUVWKDWEHDUZLWQHVVWR KLVSDVWLOOQHVV+HUXQVWKHRQO\WHOHJXQJLQJ1R´&ORWK '\LQJµ ZRUNVKRSLQ(VJDURWKDKXJHKDOOZLWKWZHQW\ HPSOR\HHV+HDQGKLVDVVLVWDQWVSHQGPXFKRIWKHLUWLPH FRQGXFWLQJ EXVLQHVV ZLWK YDULRXV IRON DERXW WKH WRZQ (DUZXQJD1R´:LWKRXW&DXVHµ .\QRGHQ·VEHDXWLIXO 'RUZLQDGDQZLIHUXQVWKHVKRSZKLOH+HUHZXOILVDZD\

(250(/,& $Q HQRUPRXV PDQ WDOO DQG QHDUO\ OEV (RUPHQOLF1R ´*UHDW+XJH %RG\µ KHDGV WKH $LUQ VPLWKDV1R´,URQVPLWKVµ DQGRSHUDWHVKLVRZQVPLWK\ ,PPHQVHO\VWURQJKHVSHQWWLPHZDQGHULQJDVD\RXWKDQG VHUYHG DV D PHUFHQDU\ LQ WKH *RQGRULDQ DUP\ ZLWK KLV FORVH IULHQG +HPPLQJ (RUPHQOLF LV DJLIWHG ZHDSRQ VPLWKDQGKDVKDGDQXQFDQQ\LQWHUHVWLQP\VWLFDO1RUWKURQ UXQHV VLQFH KLV FKLOGKRRG ([WUHPHO\VXSHUVWLWLRXV WKH %HDUOLNH ZDUULRU ZDV QRWRULRXV DPRQJ KLV VHOOVZRUG FRPSDWULRWV IRUKLVIHDUOHVV EORRGIUHQ]LHV +LVEODFNH\HVDQGORQJGDUNEURZQKDLUDUHIULJKWHQ LQJO\XQNHPSWDQGKHVSRUWVVHYHUDOZLFNHGEDWWOHZHDOV RQKLVIDFHEXWWKRVHZKRNQRZKLPZHOODFNQRZOHGJHKLV JRRGKXPRU7KHIRUW\WZR\HDUROGZDVDEDQGRQHGE\ WKHeRWKUDLPEDUPDLGKHPDUULHG\HDUVDJRKHKDVUDLVHG WKHFKLOGWKH\KDGVLQJOHKDQGHGO\ZLWKUHDOFRPSHWHQFH

/,1/2&&0$(/$ /LQORFF1R´)OD[HQKDLUµ LVDVLOYHUVPLWKJROGVPLWK DQG MHZHOHU ZKR KDV EHHQ DSSRLQWHG WRZQ 0DHOD1R ´&RLQHUµ E\2GDJDYLD7KHSRVLWLRQLVRQHRIVLJQLILFDQW VWDWXVMHZHOVPLWKVDUHDOZD\VDFFRUGHGUHVSHFWLQ1RUWKURQ FXOWXUHV EXWOLWWOHUHDOSRZHUIRU/LQORFFRQO\PLQWVDW WKHUHTXHVWRIWKH 0DHVWD7KH WKLUW\\HDUROGEDFKHORU ZRUNV DORQH NHHSLQJERWK /DNHWRZQ·V VSHFLDO FRLQLQJ GLHVDQGKLVRZQYDOXDEOHZRUNPDWHULDOVLQDKLGGHQPHWDO VDIHLQKLVZRUNVKRSSURWHFWHGE\D+RXQGQDPHG'ROJ 1R ´6FDU :RXQGµ 2YHUDOO /LQORFF OHDGV D UDWKHU TXLHWOLIH

5,1(/ +(00,1* $PHPEHURIWKH&ODWKZ\UNHQGDV5LQHO1R´&RX $PHUFHQDU\LQKLV\RXWKWKH.U\QRIWKH/HGHUZLUWDV ULHUµ LV WKH PRVW SURVSHURXV VDLOPDNHU LQ /DNHWRZQ 1R´/HDWKHUZRUNHUVµ +HPPLQJ1R´+LGHVKRHµ 0DUULHG WR D VDLORU WKH EHZLWFKLQJ WRZKHDGHG /DNH LV D TXDOLW\ DUPRUHU EXW ODFNV WKH DGPLQLVWUDWLYH DQG ZRPDQ LV UDLVLQJ D VL[\HDUROG GDXJKWHU DQG VKDUHV D GLSORPDF\XVXDOO\ UHTXLUHG RIDQ HGIUHDKDUOHDGHU7KLV FORVHIULHQGVKLSZLWK )ORWD ODFNRIFRQFHUQZLWKWKHGDLO\JULQGFRQVWDQWO\ZRUULHVKLV )5('(*21'( DVVLVWDQW EXW+HPPLQJ·VULEDOGVHQVHRIKXPRULQVXUHV )UHGHJRQGH 1R ´9HU\ 3HUFHSWLYH $OONQRZLQJµ KLVSRSXODULW\ZLWKWKHFREEOHUVDQGWDQQHUVZKRPDNHXS UXQV WKH PRVW VXFFHVVIXO FKDQGOHU·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´5HWDLQHUµ UXQV DWDQQLQJ\DUG RQ WKH 7KHQLQHWHHQ\HDUROGGDXJKWHURI)UHGHJRQGH*HOGD VRXWKHDVWHGJHRI/DNHWRZQ·VSODWIRUPLQWKH9LVFHUVWHGH 1R´*ROGHQ>KDLUHG@µ KDVLQKHULWHGKHUPRWKHU·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·VGDXJKWHUV

)/27$ )ORWD 1R ´6DLORUµ LV (VJDURWK·V PRVW SURPLQHQW URSHPDNHU6KHXVHVERWKKLGHDQGLPSRUWHGKHPSIRUKHU FUDIWDQGKDVDVKRSXSRQ:DLQVWUDHUWDQE\WKHVRXWKHUQ :RHWVDO7KH UHGKHDGLVFORVHIULHQGVZLWK5LQHOWKH VDLOPDNHU )ORWDKDVDQ HLJKW\HDUROGVRQ DQG LV EHLQJ FRXUWHG E\ %HDGDURI +2/7,1* $ 'DOHPDQ RIWKH 6WDKQRWKpRG FODQ +ROWLQJ1R ´&RSVH:RRGVPDQµ UXQVDEULVNEXVLQHVVDV(VJDURWK·V RQO\ VWRQHPDVRQ )HDU RI ILUH DQG FHUWDLQ WRZQ UXOHV UHTXLUH FKLPQH\V LQ PRVW EXLOGLQJV VR +ROWLQJ KDV D JXDUDQWHHGPDUNHW7KHEODFNKDLUHGJUH\H\HGWZHQW\ ILYH \HDU ROG PDNHV UHJXODU PRQWKO\ YLVLWV EDFN WR KLV PHQWRUDQGXQFOHLQ'DOH3HSLQ2IWHQKHULGHVZLWKWKH PHUFKDQW$QWKDULVZKRWUHNVWR'DOHIRUPDUNHWGD\HDFK PRQWK DQG WKH WZR KDYHVWUXFN XSDQ RGG IULHQGVKLS +ROWLQJ LV LQQDWHO\ DEOH WR FRPSUHKHQG 7KURVHOWXQJH 1R ´7KUXVKVSHHFKµ DQG ZLWK +XUP :DWROHU KH VKDUHVDQLQWHUHVWLQDQGDIIHFWLRQIRUELUGVRIDOOYDULHWLHV HVSHFLDOO\WKH6WRUNVWKDWQHVW HDFK VXPPHUDURXQGWKH FKLPQH\V RI/DNHWRZQ +850:$72/(5 +XUP:DWROHU1R ´6RRWWKH7KDWFKHUµ DJDQJO\ DQG KRPHO\ PDQ RI WKLUW\WKUHH LV D PHPEHU RI WKH +XGDQE\OGDV DQG WKH SUHHPLQHQW URRIHU LQ (VJDURWK $VLGHIURPKLVSURIHVVLRQ:DWROHU·VFRQVXPLQJSDVVLRQ LVELUGVDQGWKHWRSIORRURIKLVWKUHHVWRU\KRPHLQWKH &ODWKRULV ILOOHG ZLWK WZLWWHULQJSRSXODWLRQ:DWROHULV HVSHFLDOO\IRQGRI6WRUNVDQLQWHUHVWWKDWKDVVSDZQHGD IULHQGVKLSZLWK+ROWLQJ8QIRUWXQDWHO\WKHURRIHUWHQGV WRSUDWWOHRQHQGOHVVO\DERXWKLVKREE\VRPRVWIRONZKR NQRZKLP DYRLG WKH LUULWDWLQJ DQGJRRI\ EXW UHODWLYHO\ KDUPOHVVPDQ

6$(:8/) 6DHZXOI1R ´/DNH:ROI 3LUDWHµ UXQV DVXFFHVVIXO PDULWLPHSURYLVLRQVVKRSRQWKH%\UHOFpDKDGMDFHQWWR WKHVRXWKHUQ:RHVDODQGVXSSOLHVPDQ\PHUFKDQWVDQG )LVKHUIRON,QKLV\RXWKWKH/DNHPDQZRUNHGDVDVDLORU RQWKH&HOGXLQWUDGHURXWH

9$/'25 9DOGRU 1R ´:RRGVPDQµ UXQV D JHQHUDO VXSSO\ VWRUHRQWKH*UHDW:KDUIZLWKWKHDVVLVWDQFHRIKLVZLIH DQG \RXQJVRQ7KH WRZKHDGHG PDQVXIIHUHG QR SHUVRQDO WUDJHG\ GXULQJ WKH 3ODJXH DQG LV JHQHURXV WR WKRVHZKRGLG$UHWLUHGGULKWHQPHPEHU9DOGRUVWLOOKDV PDQ\IULHQGVDQGFRQQHFWLRQVLQWKHWRZQJXDUGDQGKLV HOGHUVRQFXUUHQWO\VHUYHVZLWKWKHP 83+(/% 8SKHOE1R´&RRWµ DWKLQORQJQRVHGPDQDQGKLV ZLIHRSHUDWHDQDSRWKHFDU\DQGDEDUEHUVKRSVDQGZLFKHG EHWZHHQWKH(JLO·VEDNHU\DQG9DOGRU·VJHQHUDOVWRUH+H LVDOZD\VLQWHUHVWHGLQSXUFKDVLQJIUHVKKHUEVIURPWUDYHO OHUV

e27+:<1 eRWKZ\Q1R ´+RUVH 0DLGµ LV WKH RVWOHU IRU WKH 7RZQ6WDEOHVDQGOLYHVLQDVPDOOKDOODORQJVLGHWKHWKUHH )ROFVWHDOODV6KHLVSDLGRXWRIWKHWRZQKODHVWLQJDVDQG HPSOR\VWZRVWDEOHER\VWRDVVLVWKHU$QH[FHOOHQWKRUVH ZRPDQVKHKDVWZLFHZRQWKH/LWKH)DLUKRUVHUDFH &$5/20$1$1'527$5,6 &DUORPDQ1R ´0DQµ DQG5RWDULV1R ´3HQVLYH 6RUURZIXOµ DUHDGROHVFHQWVWDEOHER\VZKRDVVLVWeRWKZ\Q LQPDLQWDLQLQJWKH)ROFVWHDOODV%RWKVOHHSLQWKHORIWRI RQH RI WKH 6WDEOHV DQG ZRXOG WDNH VSHFLDO FDUH RI D SDUWLFXODUDQLPDO LIDGHTXDWHO\SDLG

Y<12'(1 7KH ZHDOWK\ DQG SRZHUIXO .U\Q RIWKH %RHGE\OJDV *5,3$$1'/$11,1* HGIUHDKDU.\QRGHQ1R´&ODQ&URIW)DPLO\

92*,5 9RJLU1R´&URRNHG'LVKRQHVW2QHµ LVDVPXJJOHU RIWKH%RHGE\OJDVZKRPRQLWRUVWKHDUULYDODQGXQORDG LQJRIVKLSPHQWVDWWKH(UDQQXQ +HOLYHV LQ DVSDUWDQ PDQQHU DQG DOWKRXJK KH KDV D IODW KH VWD\V DW WKH (UDQQXQPRVWHYHQLQJV

6$(:,& 6DHZLF1R´/DNH6DLORU3LUDWHµ LVDEURZQKDLUHG DYHUDJHVL]HGVPXJJOHUWKXJKHLVLQGLVWLQJXLVKDEOHIURP KLV IHOORZVH[FHSWIRUWKHODUJHEODFNH\HSDWFK KH ZHDUV RYHUDQHPSW\VRFNHW

2'$9$&(5$1'%581(+$87 ,QKLV\RXWK2GDYDFHU1R´:DWFKILUHµ VHUYHGZLWK WKHGULKWHQDQGURDPHGHDVWHUQ:LOGHUORQG:KLOHSDVV LQJWKURXJK%XKU0DKUOLQJKHPHWKLVEUHDWKWDNLQJZLIH %UXQHKDXW1R´'DUNFRPSOH[LRQHG1REOHµ ZKRZDV YLVLWLQJUHODWLYHVDQGVKHFRQYLQFHGKLPWRUHWXUQZLWKKHU WR(VJDURWKYLDDURXQGDERXWURXWH 1RWORQJDIWHUWKHLU UHWXUQWKH\ZHUHPDUULHGDQG2GDYDFHUWKHQHSKHZRI WKHUHNQRZQHG9RGDJDLQKHULWHGKLVXQFOH·VPDJQLILFHQW LQQWKH9RGDJDUD]XQ6LQFHWKDWWLPH2GDYDFHU·VHDV\ PDQQHUKDVZRQKLPFRXQWOHVVIULHQGVDOWKRXJKWKH\HDUV EHKLQG WKH EDU KDYH EHJXQ WR ZHLJK KHDYLO\ XSRQ KLV DSSHDUDQFH%UXQHKDXWKRZHYHUUHPDLQVTXLWHDWWUDFWLYH DQG LQ DGGLWLRQWRKHOSLQJWRUXQWKHLQQDQGFRRNLWV PHDOVLVRQHRIWKHWRZQ·VPRVWYDOXHGPLGZLYHV 6+$*(/'$$1'$8' 6KDJHOGD1R´/RQJKDLUHG@6RUFHUHVVµ DQG $XG1R´/LIHEORRG(QHUJHWLFµ DUHWKHQLQHWHHQDQG VHYHQWHHQ\HDUROGGDXJKWHUVRI2GDYDFHUDQG%UXQHKDXW 6KDJHOGD ZRUNV DVDEDUPDLG IRUKHUSDUHQWV ZKLOH KHU VLVWHUDVVLVWVWKHLUPRWKHUZLWKWKHFRRNLQJEHKLQGWKHEDU %RWK ZRPHQ DUHTXLWHEHDXWLIXO DQGVNLOOHG ZLWK PDJLF OLNHWKHLUPRWKHU EXW6KDJHOGDLVPRUHIRUWKULJKWWKDW KHUVK\VLVWHUDQGHQMR\VWKHHIIHFWVKHKDVRQPRVWPHQ 6KDJHOGD·V FORVHVW IULHQG LV %ORVRPD WKH GDXJKWHU RI )UHDPXQG$XGKDUERUVDVHFUHWFUXVKRQ9LFODI %$50$,'6$77+(92'$*$5$=81 0DUOXK1R´%LJ/DNHµ $QQL1R´*LIWµ *XGHOLQGD 1R´*RRG6KLHOGVµ DQG*LVHOD1R´+RVWDJHµ DUHD FORVHNQLW JURXS RIVHOISRVVHVVHG ZDLWUHVVHV ZKR VHUYH WKH YDULHG FOLHQWHOOH DW WKH 9RGDJDUD]XQ 0DUOXK WKH HOGHVW NHHSV D SURWHFWLYH H\H RQ WKH WZR \RXQJHU DQG ZLOGHUEHDXWLHV$QQLDQG*XGHOLQGD*XGHOLQGDUHFHQWO\ PDUULHGWKH\RXQJRZQHURIWKHSXEOLFVWDEOHVDFURVVWKH 9RGDJDKDPPEXWDSDWURQRIWKHLQQ·VEDUURRPZRXOG VFDUFHO\NQRZLW*LVHODLVDVWXQQLQJ6DJDWKZRPDQZKR ZDVWDNHQLQE\%UXQHKDXW\HDUVDJR6KHDQGeRGRULFKDYH FRQGXFWHG D VHFUHW RQDJDLQ RIIDJDLQ DIIDLU IRU VHYHUDO \HDUV *LVHOD·V SURILFLHQF\ ZLWK DQ\ RQHKDQGHG HGJHG ZHDSRQ³DQDELOLW\VKHKRQHGJURZLQJXSDORQH³PDNHV KHUGRXEO\XVHIXODWWKH9RGDJDUD]XQDVDERXQFHU

:$**(251$1')5($*/$ :DJJHRUQ1R´:DYH(QWKXVLDVWµ DIRUPHU&XLUO DQGKLVFORVHFRPSDQLRQ)UHDJD1R´(PRWLRQDOµ DUH WZR RI (VJDURWK·V ILQHVW ILJKWHUV 7KH WZR DUH FORVH IULHQGV DQG DV ORQJWHUP EDFKHORUV WKH\VSHQG QHDUO\ HYHU\ HYHQLQJ XSVWDLUV LQ D EDOFRQ\ ERRWK DW WKH 9RGDJDUD]XQJDPEOLQJZLWKFKDOOHQJHUVDQGHQWHUWDLQLQJ ZRPHQ)UHDJDLVDOVRWKHIDWKHURIWKHWKXJJLVK%UHDJOD DQGZLOOEDFNKLVRIIVSULQJXSLQD ILJKW %5($*/$ %UHDJOD1R´7KXJµOLWHUDOO\´+HDY\(\HOLGVµ LVWKH SURGXFWRIDXQLRQ EHWZHHQ)UHDJDDQG DQRZGHFHDVHG EDUPDLG$FKDPSLRQRIWKHEDUHNQXFNOHEUDZOVDWWKH :LWHKXLOWKHODUJH µOXJPDQDJHVWROLYHUDWKHUZHOORII KLVVWDJHZLQQLQJV+HDOVRPXJVDQRFFDVLRQDOWUDYHOOHU 7KHEXWWRIPDQ\MRNHVE\WKHSDWURQVRI9XOISODHFKVHH 6HFWLRQ %UHDJODKDVKDGKLVKHDGVKDYHGVHYHUDO WLPHV ZKLOHXQFRQVFLRXV DQG VRPH IRONVXUUHSWLWLRXVO\ UHIHUWRKLPDV$HJQRJ1R´(JJKHDGµ +HLVSK\VLFDOO\KDQGVRPHEXWKLVZLWOHVVQHVVDQGODFN RIVHOIFRQWUROPDNHKLPDOHVVWKDQGHVLUDEOHFDWFK+HKDV D FRQVXPLQJ LQIDWXDWLRQ ZLWK 6KDJHOGD ZKLFK SURPSWV KLPWRSLFNILJKWVZKHQHYHUKHLPDJLQHVVRPHRQHHOVHLV IOLUWLQJZLWKKHU7KRXJKEHKLQGKLVEDFNVKHSURIHVVHVWR ILQG KLP FUXGH 6KDJHOGD GRHV OLWWOH WR GLVFRXUDJH WKH WKXJ·VDGYDQFHV%UHDJODOLYHVLQDWKLUGIORRUVXLWHDWWKH 9RGDJDUD]XQ

5$(1'25,&6&$/(&/$77(5(5 $ JLIWHG PXVLFLDQ SURILFLHQW RQ WKH IOXWH DQG OXWH 5DHQGRULFLVDOVRDQDFFRPSOLVKHGVLQJHU$*UDPX]RI WKH)ULWKDVFODQKHLVIDLUO\KDQGVRPHDQGKLVSURIHVVLRQ DQG PDQQHU ZLQ KLP JUHDW IDYRU ZLWK \RXQJ IHPDOH DGPLUHUV+HLVFDOOHGWKH´6FDOHFODWWHUHUµ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³SU\LQJTXHVWLRQVPDNHKHU MXPS\7KH\RXQJZRPDQOLYHVLQDWKLUGIORRUVXLWHDWWKH 9RGDJDUD]XQWKDWKDVDJRRGYLHZRIWKHWRZQ·VURRIWRSV

85'5$7+ $QHQLJPDWLFPDJHIURPIDU1XULDJEH\RQGWKH6HDRI 5KQ8UGUDWKGUHVVHVLQWKHFRORUIXOUREHVRIKLVKRPH ODQGDQGLQWKH\HDUVDIWHUWKH3ODJXHPRVWIRONXQIRUWX QDWHO\UHJDUGKLPZLWKVXVSLFLRQ%\FKDQFHWKDWVXVSL FLRQ LV ZHOO IRXQGHG IRU 8UGUDWK LV DQ XQVFUXSXORXV PDJLFLDQRIEODFNVRUFHU\+HLVQRWKRZHYHUDZRUVKLS SHURIGDUNQHVV³KHGHHPVWKDWUHOLJLRQWREHDVLJQRI SHUVRQDOZHDNQHVV8UGUDWKGHVSLVHVWKHFROGZHDWKHURI /DNHWRZQ DQGORQJVWR UHWXUQ WR 1XULDG EXWDIDPLO\ GLVSXWH SUHYHQWV KLP IURP UHWXUQLQJ 5HFHQWO\ KH KDV EHHQODWHLQSD\LQJKLVUHQWIRUWKHVPDOOWKLUGIORRUVXLWH DWWKH9RGDJDUD]XQ DQG KDV EHHQ IRUFHG WR WDNH LOOHJDO MREVWRFRXQWHUVRPHJDPEOLQJGHEWV

+8& 2QHQRWDEOHH[FHSWLRQWRWKHYLOODJH·VIRFXVRQSRWWHU\ DQGEDVNHWZHDYLQJLVWKHWHHQDJHRUSKDQ+XF1R´3LNH ILVKµ ZKRHNHVRXWDPDUJLQDOH[LVWHQFHRQWKHHGJHRI WKHYLOODJHLQDKXWE\WKH/DQJ0DULVK7KHER\NQRZV WKHPDUVKODQGVOLNHIHZRWKHUVDQGVRPHWLPHVDFWVDVD JXLGH

/2&$/585$/)2/. 95$&27+$1'*5,67/81*

9UDFRWK1R´:LFNHG+DWHIXOµ DQGKLVVRQ*ULVWOXQJ 1R ´7HHWK *QDVKHUµ UXQ D FKDUQHO KRXVH RQ WKH ZHVWHUQVKRUHRIWKH/RQJ/DNHMXVWRSSRVLWH(VJDURWK 7KHPLVHUO\ROGPDQSHUVLVWHGLQFKDUJLQJDIHHWRFROOHFW ($50+5(2/)$ /DNHWRZQ·V GHFHDVHG WKURXJK WKH ZRUVW \HDUV RIWKH (DUP+UHROID1R´:UHWFKHG3RRUWKH/HSHUµ LVD 3ODJXH´%ULQJRXW\RXUGHDGµ HDUQLQJWKHHQGXULQJLUH VLFNO\PLGGOHDJHGPDQZKRLVSDLGE\WKHWRZQWRFROOHFW RIWKHWRZQ·VLQKDELWDQWV2QO\DSURFODPDWLRQLVVXHGE\ WKHUHIXVHWKDWSLOHVXSRQWKHVWUHHWV:LWKKLVVPDOOERDW 2GDJDYLDZKLFKWHPSRUDULO\IRUEDGH9UDFRWKIURPFKDUJ KHUHPRYHVWKHUXEELVKWKDWLVQRWGXPSHGLQWRWKH/RQJ LQJ IRU WKH VHUYLFH VDYHG WKH JUHHG\ PDQ IURP EHLQJ /DNHWRSLWVGXJQHDUKLVKRPHDQGEXULHVLW+HFDUULHVD O\QFKHG E\ WKH SRSXODFH (YHQ QRZ WKH WRZQVSHRSOH WDPERXULQH WR ZDUQ SDVVHUVE\ RIWKH GLVHDVH WKDW KDV DVVRFLDWHKLPZLWKWKHVFRXUJHDQG ILWWLQJO\ DYRLGKLP UHQGHUHGKLPSDUWLDOO\FULSSOHG%HFDXVHRIWKHDPRXQWRI OLNHWKHSODJXH WLPHKHVSHQGVLQWKHVKDOORZVZHVWRI(VJDURWK(DUPLV 9UDFRWK·VVRQ *ULVWOXQJDFULQJLQJDQGV\FRSKDQWLF YHU\IDPLOLDUZLWKDFWLYLWLHVRQWKH:HVWRUI \RXWKZLWKDFOHIWMDZDQGDQLUULWDWLQJKDELWRIJULQGLQJ KLVWHHWKDVVLVWVKLVIDWKHUZLWKWKHGLVSRVDORIWKHFRUSVHV 6&8/',1*$1'+,685&+,1*$1* RIWKHODWHO\GHSDUWHG8QNQRZQHYHQWRKLVIDWKHUKHKDV 6FXOGLQJ1R ´3XQLVKHGµ KHDGV DFRKRUWRI\RXQJ XUFKLQV DQG JDPLQHV ZKR PDNH D OLYLQJ WKURXJK SHWW\ EHJXQWRDWWHQG&XOWRIWKH1LJKWVPHHWLQJVKHOGRQWKH WKHIW DQG SLFNSRFNHWLQJ 0DQ\ RI WKH FKLOGUHQ ZHUH GDUNRIWKHPRRQLQWKHHDVWHUQ,URQ+LOOV³KHZDVILUVW RUSKDQHGGXULQJWKH3ODJXHDQGVRPHOLNHWKH\RXQJVWHU OHGWKHUHE\DGUHDP

5(6,'(1762)/2'$527+

9,/25,& 7KH RZQHURIWKHWZR PLOOV LQ /RQGDURWK WKDWJULQG PXFKRIWKHUHJLRQ·VJUDLQ9LORULF1R´/RVW:LOOµ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

5(6,'(1762)'$/(

e2'(5$1'68/:<1 7DOODW ZLWKVWUDLJKWFKDUFRDOKDLUWRKLVVKRXOGHUV DQG SDOH JUH\ H\HV eRGHU 1R ´%UDYH +RUVHµ LV WKH 7K\QRIWKH.U\WKpRGDQGDVVXFKWKHOHDGHUIRUDOOWKH 'DOHIRON-XVWWKLUW\VL[\HDUVROGeRGHUUHPDLQVZLWK RXWDQKHLU,QIDFW6XOZ\Q1R´3ORXJKZRPDQµ KL FRQQLYLQJEXWEUHDWKWDNLQJO\EHDXWLIXO'DOHWKpRGZLIHLV EDUUHQ EXW VKH KDV FRQYLQFHG KHU KXVEDQG WKDW WKHLU FKLOGOHVVQHVVLVKLVIDXOW%\QDWXUHDMXVWLIRYHUO\VHULRXV PDQeRGHU·VHDUKDVEHFRPHVZD\HGE\6XOZ\QDQGKLV GHFLVLRQVLQFUHDVLQJO\SURILWWKH'DOHWKpRGDQG.U\WKpRG DWWKHH[SHQVHRIWKHRWKHUFODQVHVSHFLDOO\WKH$OGXUOLQJDV ,QDQDWWHPSWWRKLGHKHURZQEODFNPDJLFSUDFWLFHVDQG WKHLOOLFLWJROGPLQLQJKHUFODQLVLQYROYHGLQ6XOZ\QKDV EHJXQWRFRQYLQFHeRGHUWKDWWKH$OGXUOLQJDVDUHLQYROYHG LQGHPRQZRUVKLS6KHKDVORQJKRQH\FRORUHGKDLUDQG ZDONVZLWKWKHKDXJKW\DZDUHQHVVWKDWDOOH\HVDUHXSRQ KHU6KH LVVHFUHWO\DQDGKHUHQWRIWKH&XOWRIWKH/RQJ 1LJKWDQGGLVDSSHDUVHDFKPRQWKWRDWWHQGPHHWLQJVLQ WKH,URQ+LOOV :2(':<1 +HUKXVEDQGLVQHYHUZLWKRXWKLVV\PERORI7K\QVKLS :RHGZ\Q1R ´)UHQ]LHG :RPDQµ LVWKH\RXQJHU :XUPVSHUHVHH6HFWLRQ DQGLVDOZD\VDFFRPSD VLVWHURI9LORULFDQGWKHWUXHEUDLQVEHKLQGKLVVPXJJOLQJ QLHGE\KLVWZRILHUFHGURROLQJPDUVKPDVWLIIVWUDLQHGIRU 6KH LV REVHVVHG ZLWK KHU DOFKHPLFDO H[SHULPHQWV DQG ZDU,QJZDGHEDVHG6´+RZOµ1R´,QVXIIHUDEOHµ DQG VSHQGVORQJKRXUVH[SHULPHQWLQJLQKHUODERUDWRU\7KRXJK +XRWK6´*XDUG'RJµ1R´6DOLYDµ eRGHUOLNHPDQ\ VKH LV TXLHW LQ WKH SUHVHQFH RIKHU EURWKHU DQG RWKHUV RIKLVNLQLVLQQDWHO\DEOHWRXQGHUVWDQGWKHODQJXDJHRI SHUFHSWLYHREVHUYHUVZLOOQRWLFHWKDWKHUVLOHQFHLVRQHRI 7KUXVKHV7KURVHOWXQJH SRZHU 9LORULF FKHFNV IRU KHU DSSURYDO ZLWK D VXEWOH JODQFHEHIRUHKHPDNHVDQ\PDMRUGHFLVLRQV -,5)(/,$1 $V D &XOW RIWKH /RQJ 1LJKW PHPEHU :RHGZ\Q·V 6XOZ\Q·VKDWUHGRI-LUIHOLDQ1R´0LVFKLHI0DNHUµ LV GHPHDQRU FKDQJHV GUDPDWLFDOO\ :KHQ ILOOHG ZLWK WKH DSULPDU\UHDVRQVKHKDVVRXJKWWRWXUQeRGHUDJDLQVWWKH SRZHURIKHUEODFNGHLW\DWWKHPRQWKO\ULWXDOVLQWKH,URQ $OGXUOLQJDV7KHFODQ·V.U\QDWRQO\WZHQW\QLQH\HDUVRI +LOOVVKHEHFRPHVZLOGH\HGDQGIHUYHQWDVVKHFDUULHVRXW DJH-LUIHOLDQH[FHOVDWHYHU\WKLQJ$EULOOLDQWSXEOLFVSHDNHU WKHULWXDOVRIKHUIDLWK WKHOLNHVRIZKLFK'DOHKDVQHYHUEHIRUHVHHQWKH\RXQJ .U\QSRVVHVVHVDSLHUFLQJZLWDQGH[WUDRUGLQDU\SHUVRQDO 7+(0,//(5·6$335(17,&(6 FKDULVPD 6KH VSHDNV VHYHQODQJXDJHV DQG FDQ FRPSUH 9LORULF HPSOR\V IRXU DSSUHQWLFHV ZKR VHUYH PRUH DV KHQG7KURVHOWXQJH,QGHHGLWLVUHPDUNDEOH6XOZ\QKDV ORFDOWKXJV³WKH\H[WRUWPRQH\DQGWHUURUL]HORFDOSRRU EHHQDEOHWRWXUQKHUKXVEDQGDJDLQVWWKLVILHU\OHDGHUIRU IRONLQDGGLWLRQWRSDFNLQJFRQWUDEDQGLQWRVDFNVRIJUDLQ VLQFH KLV \RXWK eRGHU KDV KDUERUHG D VHFUHW IDQF\ IRU DQGRSHUDWLQJ9LORULF·VPLOOV1RQHRIWKHPDUHHVSHFLDOO\ -LUIHOLDQ6KHLVJRUJHRXVZLWKORQJVLHQQDKDLUJOLWWHULQJ EULJKWRUVNLOOHGDVDILJKWHU/DQQ1R´%RQGVPDQµ LV KD]HOH\HVDQGDOHDQFRUGOLNHERG\8QPDUULHG-LUIHOLDQ ODUJHDQGYHU\OD]\ZKLOH0DULR1R´7KLFN7KHZVµ LV KDVPDGHKHUVWURQJVHYHQ\HDUROGVRQKHUOHJDOKHLU KXJH DQG TXLWH VWURQJ EXW GXPE DV D KLWFKLQJ SRVW $UHNQRZQVRUFHUHVV-LUIHOLDQLVUXPRUHGWRKDYHVODLQ 0DHFZLQ 1R ´.LQVPDQµ LV PRUH QRUPDOVL]HG KLV D&ROGGUDNHLQVLQJOHFRPEDWDQGVKHKDVPHW6XOZ\Q·V LQWHOOLJHQFHPDNHVKLPWKHJURXS·VULQJOHDGHUDSRVLWLRQ ZKLFK DOORZV KLP WR H[HUFLVH D GHFLGHGO\FUXHO VWUHDN YHLOHG WKUHDWV DQG LQVLQXDWLRQV E\ FKDOOHQJLQJ eRGHU·V 8PERU1R´&KLOGµ LV\RXQJVORSS\DQGVWXSLGPXFK SRRUMXGJPHQW+HUNLQVIRONEDFNKHUDQGPDQ\RIWKH )HRWOLQJDVDUHEHJLQQLQJWREHFRQYLQFHGE\KHUSRZHUIXO RIWKHWLPHKHLVGUXQN RUDWRU\

0,18,$/ 0LQXLDO6´7ZLOLJKWµ KROGVWKHUHYHUHGSRVLWLRQRI %RFHUD1R´%RRNNHHSHUµ IRUWKH'DOHIRON,QKHUODWH WZHQWLHV0LQXLDOWRRNRYHUKHUSRVLWLRQDIWHUWKHGHDWKRI KHUPHQWRULQWKH3ODJXHWZR\HDUVDJR6KHNHHSVWKHNH\ WRWKH'DOHERFVKUHLQ1R´6KULQHRIWKH%RRNRI'DOHµ RQKHUSHUVRQDWDOOWLPHVDQGLVIUHTXHQWO\EXV\UHFRUGLQJ LPSRUWDQWPDWWHUVLQ WKH 'DOHERFZKLFK LVNHSWLQWKH .UDHWKLQJDVKXG ,Q NHHSLQJ ZLWK WKH RUDO QDWXUH RI 1RUWKURQFXOWXUHWKHVFRSLVDVWHOODUVLQJHUDQGSXEOLF VSHDNHU +HUPDJQHWLFSHUVRQDOLW\ LQVSLUHVWUXVWHYHQ LQ WKRVHZKRNQRZKHURQO\FDVXDOO\DXVHIXOTXDOLW\IRUWKH LQGLYLGXDOFKDUJHGZLWKUHFRUGLQJKHUSHRSOH·VKLVWRU\$ PHPEHURIWKH.U\WKpRGFODQ0LQXLDOQHYHUWKHOHVVPDLQ WDLQVDIULHQGVKLSZLWK-LUIHOLDQ

*HOPLU1R´3URXG0DUHµ6´)ORZLQJ-HZHOµ DQG 0DUDFK1R´&URIW%RXQGHG6SDFHµ DUHPDVWHUJODVV EORZHUVZKRZRUNLQWKH(OYLVKWUDGLWLRQ7KHZRUNVRI WKHVHUHNQRZQHG$OGXUOLQJDVPHPEHUVDUHIDPRXVDQGLQ KLJKGHPDQGDVOX[XU\LWHPVDOODORQJWKH5LYHU5XQQLQJ 3HSLQ RIWKH 6WDKQRWKpRG LV D PDVWHU PDVRQ ZKR GLUHFWVDODUJHDWHOLHUWKDWZRUNVSULPDULO\ZLWKJUDQLWH+H VSHQGVPXFKRIKLVSHUVRQDOWLPHFDUYLQJKLJKUHOLHIVLQ OLPHVWRQHKRZHYHUDQGPDLQWDLQVFRQWDFWZLWKKLVQHSKHZ +ROWLQJLQ(VJDURWK *XQWUDP 1R ´6WURQJ 0DWWHUµ WKH %\OWE\OWD 1R&DVNPDNHUµ DQXSURRWHG/DNHPDQUXQVWKHRQO\ &RRSHU·VHGIUHDKDULQ'DOH+HWRRKDVFORVHFRQWDFWVLQ /DNHWRZQ %URFNLQJ1R ´%DGJHUFRDWµ WKH%DNHUDQGKLVZLIH 6WDQFKHOD 1R ´&KHVWQXWµ UXQ RQH RIWKH IRUHPRVW 9$/&5,**( EDNHULHVLQWRZQZKRVHIDPHKDVVSUHDGDOOWKHZD\WRWKH 7KH .U\Q RIWKH 6WDKQRWKpRG FODQ 9DOFULJJH 1R VKRUHVRIWKH/RQJ/DNHEHFDXVHRIWKH7ZLGGHOEDQQRFNV ´6RUFHUHVVµ LVDQHOGHUO\ZRPDQZLWKVWULNLQJVLOYHUKDLU WKH\ SURGXFH VHH 6HFWLRQ 6WDQFKHOD LV DOVR LQ VKHLVDUHNQRZQHG6WRUUDN\QSULHVWHVVZKRRIWHQPDNHV GHPDQGIRUKHUJUHDWVNLOODVDPLGZLIH SLOJULPDJHVXS(UHERU %DULF1R ´%RDU/RUGµ RIWKH )HRWOLQJDV LVD ZHOO )25:(1 NQRZQDQGVNLOOHGDUPRUHUZKRYLVLWV%XUK7KXUDVLJIRU 2QH RI WKH PRVW VNLOOHG DQG H[SHULHQFHG PRXQWHG WKH VSULQJ IDLU KHOG WKHUH³KH KDV IRUPHG D IULHQGVKLS ZDUULRUVDPRQJWKH'DOHIRON)RUZHQ1R´,QVROHQFHµ ZLWK*QRUQRI/DNHWRZQZKRDOVRDWWHQGVWKHIHVWLYDO³ 6´1RUWKPDLGµ LVDOVRWKH.U\QRIWKH)HRWOLQJDVFODQ DQGIRHVWR(VJDURWK IRUWKH/LWKH)DLUDWPLGVXPPHU $WRQHWLPHDVWDXQFKVXSSRUWHURIeRGHUVKHKDVEHJXQ WREHVZD\HGE\-LUIHOLDQ·VDUJXPHQWVKHUFKDQJHRIKHDUW 75$16,(176 LVSDUWO\GXHDVZHOOWR6XOZ\Q·VYLFLRXVDQGXQSURYRNHG 9LVLWRUV WR (VJDURWK DQG RWKHU UHJLRQDO WRZQV DUH D YHUEDO DVVDXOWV RQ %HDZ\Q DQ HOGHUO\ )HRWOLQJDV GLYHUVHORW³PHUFKDQWVWUDYHOOLQJSHUIRUPHUVDGYHQWXU Z\UGZRPDQ HUVDQGVHOOVZRUGV 52*1$&+$5 /27721,0%/(72(6 7KH'DOHWKpRG.U\QDQGIDWKHUWR6XOZ\Q5RJQDFKDU /RWWR 1LPEOHWRHV.X ´/XFD5DQDGDGµ KDLOV IURP 1R´&ORVH9LFWRU\µ6´'HPRQ+RUVHµ LVDVFKHPLQJ WKH 6WRRU+REELW YLOODJH RI'XQGRN.X ´(DUWK (P GLSORPDWZLWKDWRQJXHDVVZHHWDV:RRGHOYHQFRUGLDO EDQNPHQWµ LQ WKH *ODGGHQ )LHOGV +LV IDPLO\ WKH 6WLOOKDOHGHVSLWHKLVDJHWKHZDUULRULVWKHPDVWHUPLQG 1LPEOHWRHVDUHILVKHUIRONNQRZQIRUWKHLU)DOORZKLGLVK EHKLQGKLVFODQ·VLOOLFLWJROGPLQLQJLQ(UHERUDQGKDVHYHQ VWUHDNRIDGYHQWXUH /RWWR OHIW KLV VPDOO FRPPXQLW\ WR HQFRXUDJHG WKH SXUVXLW RI WKH EODFN DUWV DPRQJ KLV VHHNKLVIRUWXQHDIWHUDPLOGIDOOLQJRXWZLWKKLVXQFOHWKH NLQVIRON DOO XQGHUWKH DXVSLFHV RIFRQWULEXWLQJWR ´WKH IDPLO\SDWULDUFK %DQDNLQ $JRLQJDZD\JLIWRIELVFXLWV ULJKWIXO FRQVROLGDWLRQ RIWKH 'DOHWKpRG FODQ·V SRZHUµ IURP WKHDJHGKHUPLW-DFN6WUDZ.X ´3RJR6SLOLNLQµ 7KHDJHGSDWULDUFKNHHSVWZREDWWOHWUDLQHGPDUVKPDV ZDVJLYHQWRKLPZUDSSHGLQDFRORUIXOWDUWDQFORWKZKLFK WLIIVDVKLVFRQVWDQWFRPSDQLRQV'UHQJ1R´:DUULRUµ LV DFWXDOO\ WKH SRZHUIXO +LOOPDQ EDQQHU WKH %UDWWRNK DQG'XQQ1R´'DUNEURZQµ 6KDH VHH 6HFWLRQ /RWWR KDV \HW WR UHDOL]H WKH VLJQLILFDQFH RIWKH LWHP 27+(572:16)2/.2)'$/( (VVHQWLDOO\ D PRUDO SHUVRQ /RWWR VRPHWLPHV FDQQRW 0DQ\ RWKHU 'DOHIRON RIGLIIHULQJ FODQV PDNH WKHLU KRPHVLQ'DOH %HDZ\Q1R´,QMXUHG:RPDQµ RIWKH UHVLVWWKHWHPSWDWLRQWRWHVWKLVWKLHYLQJVNLOOVE\UHOLHYLQJ )HRWOLQJDV VHH6HFWLRQ DZ\UGZRPDQZKRPPDQ\ VRPHGXSHRIKLVSXUVH+HXVXDOO\IHHOVJXLOW\DIWHUZDUGV FRQVLGHUWREHUDWKHUDGGOHGOLYHVLQWKHVHWWOHPHQWDVGR 'UDZQWR/DNHWRZQE\KLVORYHIRUDQGIDPLOLDULW\ZLWK OLIH RQ WKH ZDWHU WKH 6WRRU KDV WDNHQ D URRP DW WKH PDQ\DUWLVDQV 7KH .U\WKpRG FODQ EURWKHUV +LOGHULQF 1R ´:DU 9RGDJDUD]XQDQGVSHQGVKLVWLPHHDWLQJDQGGULQNLQJ ULRUµ DQG /HRYULF 1R ´0RVW %HORYHGµ DUH PDVWHU H[SORULQJDQGUXQQLQJVPDOOVFDPVOLNHWKLPEHOULJ1R MHZHOVPLWKV HVSHFLDOO\ IRQG RI HQDPHO DQG PLOOHILRUL ´6KHOO*DPHµ LQWKH7DIHQ·VWDYHUQDQGRQVWUHHWFRUQHUV FORLVRQQH JROG ILOOLJUHH DQG QLHOOR LQOD\ +LOGHULQF LV /LNHPRVW6WRRUV/RWWRZHDUVVRIWOHDWKHUZDWHUSURRI FDOOHG 3XWWDEODFK 1R ´$VKHQ*UDYHSDOHµ IURP D ERRWVRQ KLVIXUU\IHHW7KHGDUNFXUO\KDLUHG+DOIOLQJ V\PSWRP RIKLV OHDG SRLVRQLQJ +LV EURWKHU /HRYULF LV GRHVQRW\HWKDYHDQ\ZKLVNHUVRQKLVFKLQDQGKHXVHVKLV DOVRWKHWRZQ·V&RLQPDVWHU7KHLUZRUNVKRSLVSURWHFWHG FXWHFKLOGOLNHDSSHDUDQFHWRPD[LPXPHIIHFW+LVSHUVRQ E\+LOGHULQF·VSHWPDUVKPDVWLII*XUZDIHQ1R´0DUVKµ DOLW\FDQEHVXPPHGXSLQDZRUG³LPSLVK

75$9(//,1*-8**/(56 7KH PDUULHG FRXSOH7KHXGHULF1R´7ULEDO /DG\µ DQG6LJHEHUWD1R´7ULXPSKDQWµ DUH:RRGIRONRIWKH 6DLUWKpRG 1R ´([DOWHG5DLVHG >YLOODJH@ )RONµ FODQ IURP :LGOLQJKROW1R ´:RRGPHQWRZQµ LQZHVWHUQ 0LUNZRRG7KHMXJJOHUVKDYHRQO\UHFHQWO\WUDYHOOHGWR WKHUHJLRQRI(VJDURWKDQGGUDZODUJHFURZGVRQPDUNHWV GD\VLQ'DOHDQG/DNHWRZQ

75$9(//,1*3833(7((56 *UDPEHRUW 1R ´)LHUFH $QJHUµ WKH SXSSHWHHU LV D :RRGPDQ IURP ZHVWHUQ 0LUNZRRG ZKR PHW KLV DS SUHQWLFH 5DQW1R´&RXUVHUµ LQ %XKU:DOGODHV1R ´6WUD\KROGµ 7KHVKRZVWKH\SXWRQRQPDUNHWGD\VDUH LPPHQVHO\ SRSXODU WKURXJKRXW WKH UHJLRQ RIWHQ PHU FKDQWVZLOOSD\WKHPWRVHWXSWKHLUVPDOOSRUWDEOHWKHDWUH QHDUE\EHDFDXVHRIWKHFURZGLWGUDZV '$*2%(577+(3(''/(5 'DJREHUW1R ´6HFUHWLYHµ LV DSHGGOHUZKR WUDYHOV IURP YLOODJH WR YLOODJH LQ WKH 1DQ $QQHQ EX\LQJ DQG VHOOLQJPLQRULWHPVDQGVZLQGOLQJPRQH\IURPSHRSOHRQ WKHVWUHHWZLWKYDULRXVVPDOOJDPEOLQJVFDPV

5(6,'(1762) &(/(%$1121

2+7$5$1'&$07+$/,21 2KWDU6 ´:DUULRUµ D6LQGDULQ(OI ZDVRQHRIWKH IRXQGHUVRIWKHRULJLQDOFRPPXQLW\RI&HOHEDQQRQVRPH \HDUVDJR1RZKHVHUYHVDVWKHPDVWHURIWKHVPDOO WUDGLQJDQGILVKLQJVHWWOHPHQW&DPWKDOLRQ2KWDU·VVHF RQGLQFRPPDQG ZRUNV FORVHO\ ZLWK WKH 7LUGXLQ 6 ´5LYHU*XDUGµ IRUFH RIWZHQW\VHYHQ VWDWLRQHG LQ WKH YLOODJHDQGLVFRQWLQXDOO\RQWKHORRNRXWIRUDQ\LQIRUPD WLRQ DERXWKLV PLVVLQJGDXJKWHU 1DUPLUs6HH6HFWLRQ

&(/(48$5(/(1:Ê$1')8,1$5 &HOHTXDU 1R ´4XLFNVLOYHUµ &DPWKDOLRQ·V ZRRG 675((7086,&,$16 ODQGZDUGHUVRQPDNHVIUHTXHQWYLVLWVWR&HOHEDQQRQWR 5RHQGD1R´6DLORUµ DQG%DOOLQ1R´)XQHUDO3\UHµ 6 ´6RQJ RI3RZHUµ DUH WUDYHOLQJPXVLFLDQV ZKR PRVW FKHHUXSKLVIDWKHU2IWHQ(OHQZs4´6WDU1DQGRUµ DQG RIWHQ SHUIRUP RQ WKH VWUHHW 7KH\ DUH IULHQGO\ ZLWK )XLQDU6´*ORRP/RYHUµ WZRRWKHUZRRGODQGZDUGHUV 5DHQGRULFDQGPD\WXUQXSDWWKH9RGDJDUD]XQLIWKH\DUH IURP &HOHEDQQRQ DFFRPSDQ\ &HOHTXDU EDFN WR WKHLU LQ (VJDURWK 7KHLU IDYRULWH VSRW LQ /DNHWRZQ LV WKH YLOODJH 6SHOOVWDOSDORQJVLGH%UXFNDVWUDHUWDQ &8,9(73(/0(0%(56 %UDQGLU 6 ´%RUGHU :DWFKHUµ LV D &XLYHWSHO 6 6(//6:25'6 0DQ\PHUFHQDULHVVSHQGWKHLUWLPHIUHTXHQWLQJGULQN ´(QFLUFOLQJ)HQFHµ ORUGZKRZDWFKHVWKHZRRGODQGVLQ LQJDQGJDPEOLQJKDOOVDORQJWKH:HVWRUIOLNHWKH6HROIDUQ WKHQRUWKHVWRI7KUDQGXLO·VUHDOPZLWKKLVIRUFHRIHLJKW &DOFWKH1LXQSLQQDVDQG*~PD·V7ZRVXFKW\SHVDUHWKH :RRGHOI UDQJHUV 7DWKDULHO 6 ´:LOORZ>\@ 0DLGµ FRXVLQV &KLOSHULF 1R ´>'HDWK@FKLOO 6SHDUµ DQG *DOHULQ6 ´6KLQLQJ:RRGµ *LOUDHQ6 ´:DQGHULQJ &KDULEHUW1R´2YHUZKHOPHUµ VNLOOHGeRWKUDLPKRUVH 6WDUµ %HOLRQ6´3RZHUIXOµ *ZDHGXQ64´=HSK\Uµ PHQRIWKH$LOJUDV1R´6DFUHG6WDJ>3HRSOH@µ FODQRI 7LULHO6´:DWFKPDLGµ &DOHQGLU6´*UHHQ*D]Hµ WKH$LOJDUWKDV1R´)ULHQGVRIWKH6DFUHG6WDJµ WULEHDW DQG%UHWKLOZHQ6´6LOYHUELUFK0DLGµ %XKU$LOJUD

5(*,21$/5(6,'(176

:LWKQRZKHUHHOVHWRJRWKHKDQGVRPHDXEXUQPDQHG RXWFDVW ZDQGHUHG QRUWK ZRUNLQJ DV D PHUFHQDU\ DQG 0DQ\RIWKHWKRVHZKROLYHLQUHJLRQVDGMDFHQWWR/DNH KLJKZD\PDQ(YHQWXDOO\KHDQGDVPDOOFRKRUWRIIHOORZ WRZQ DUH GHVFULEHG HOVHZKHUH +UHRZDOGD 9RODI DQG 6NHVVDDUHGHWDLOHGLQ6HFWLRQ+RIGLQJDQGKLVEDQG RXWODZVWRRNXSUHVLGHQFHDW&OHRIDFRWVKRUWO\EHIRUHWKH RXWEUHDNRIWKH3ODJXH$VSHRSOHIOHGPRUHXUEDQDUHDV RIKLJKZD\PHQDUHGHVFULEHGLQ6HFWLRQ WKHUDQNVRI'LHUDJOLU·VEDQGLWVVZHOOHG UHDFKLQJQHDUO\ 7,17$$1'0$+72 RQH KXQGUHG ZDUULRUV E\7$ ,QFOXGLQJ ZLYHV 7LQWD$V´0HDGRZµ DQGKLVVRQ0DKWR$V´%HDUµ ORYHUV DQG ERQGVHUYDQWV WKH SRSXODWLRQ RI&OHRIDFRW DUHWZRGLVSODFHG$VGULDJ(DVWHUOLQJVZKRWHQGKRUVHVRQ DIWHUWKH3ODJXHLVQHDUO\ WKH RDN VDYDQQDK HDVW RIWKH /RQJ /DNH YDOOH\ 7KHLU 7KH EDQGLW ORUG·V IRUFH UDQJHV IDUDQG ZLGH LQ WKUHH FXVWRPHUVZKRPXVWXVXDOO\WUDYHORXWLQWRWKHFRXQWU\ JURXSVRIWKLUW\WKUHHEULJDQGVHDFKDQGWKH\SUH\PDLQO\ VLGH WR PDNH D SXUFKDVH LQFOXGH PDQ\ ORFDO *UDPX] RQWUDYHOOHUVDORQJQHDUE\URDGVDQGVPDOOUXUDOFRPPX VRPH'DOHIRONeRWKUDLPIURPVRXWKRIWKH&HOGXLQDQG QLWLHV'LHUDJOLUFRPPDQGVRQHRIWKHVHJURXSVDVGRHDFK EDQGLWVLQ'LHUDJOLU·VHQWRXUDJH3OD\HUFKDUDFWHUVSDUWLFL RIKLVOLHXWHQDQWV8WODVKDQG.RXPLVV$WOHDVWRQHRIWKH SDWLQJLQWKHDGYHQWXUHGHWDLOHGLQ6HFWLRQPLJKWEH JURXSVLVDOZD\VDW&OHRIDFRWWRSURWHFWLWDJDLQVWSRWHQ DEOHWRORFDWH'LHUDJOLU·VKLGHRXW&OHRIDFRWE\VS\LQJRQ WLDO DWWDFNHUV 7KH ZDUULRU·V EDQG RI ZROIVKHDGV DUH RUEULELQJWKHKRUVHWUDGHUV SDUWLFXODUO\ GHDGO\EHFDXVH 'LHUDJOLU LQVLVWV WKDWDOO KLV EDQGLWV EH VNLOOHG ULGHUV DQG DUFKHUV +LV RZQ DUFKHU\ %52*',1 %URJGLQ1R´&XQQLQJµ LVWKH7K\QRIWKH)ULWKDV VNLOOV DUH OHJHQGDU\ WDOHV FODLP KH QHYHU IDLOV WR NLOO D FODQ DQG WKH SUHHPLQHQW *UDPX] OHDGHU QRUWK RIWKH FKRVHQPDUN 5LYHU5XQQLQJ)RUW\HLJKW\HDUVROGLQ7$ WKH 87/$6+ ZHDWKHUHGOHDGHUZHDUV KLVZKLWHEORQGHEHDUGDQGKDLU 8WODVK 1R ´2XWODZµ LV D ORQJWLPHFRPSDQLRQ RI ORQJ DQG ZLOGO\ IORZLQJ DQG FXWV DQ LPSUHVVLYH ILJXUH 'LHUDJOLU D *UDPX] PDQ IURP VRXWKHUQ :LOGHUORQG JDOORSLQJDFURVVWKHFRXQWU\VLGH$OWKRXJKKHPDNHVKLV 8WODVKODFNVWKHLPPHQVHVWDWXUHDQGVWUHQJWKRI'LHUDJOLU SULPDU\KRPH DW:DQJDLO QRWIDUIURPWKH 'RUZLQLRQ EXWLVDQDFFRPSOLVKHGZDUULRUULGHUDQGWDFWLFLDQKHDOVR 5RDG%URJGLQVSHQGVDODUJHSDUWRIHDFK\HDUWUDYHOOLQJ GLVSOD\VDGH[WHULW\WRPDWFKWKDWRIKLVIULHQGDQGOHDGHU IURPRQH)ULWKDVPDHGZHGXNDVWRDQRWKHUDVDQKRQRUHG $VWKHEDQGLWV·ILUVWOLHXWHQDQWKLVRSLQLRQLVIUHTXHQWO\ JLIWGLVSHQVLQJ JXHVW LQ D PDQQHU W\SLFDO RI *UDPX] VRXJKWE\'LHUDJOLU OHDGHUV +LV HQWRXUDJH LQFOXGHV VL[ KXLGULKWHQ 1R ´+RXVHJXDUGVµ DWDOHQWHGVFRSDQGDVNLOOHGMHZHOVPLWK ZKR DSSUHQWLFHGZLWK +LOGHULQFRI'DOH $PDQZLVHEH\RQGKLV\HDUV%URJGLQ·VFRXQFLOLVRIWHQ VRXJKWE\WKRVHLQDGLVSXWHJLYHQWKH7K\Q·VVSHFLDOWDOHQW IRU UHFRQFLOLQJ IHXGLQJ SDUWLHV +LV KRUVHPDQVKLS DQG VNLOOVDVDZDUULRUDUHH[WUDRUGLQDU\WKHVHVNLOOVKDYHZRQ KLP JUHDW UHVSHFW HYHQ DPRQJ WKH eRWKUDLP D ZDUOLNH SHRSOH ZKRDUHRIWHQ VFRUQIXORIWKHIDUPLQJ*UDPX]

',(5$*/,52)5(/0(7+(5 'LHUDJOLU1R ´%UDZQ\1REOHµ ZDV ERUQ LQWKH YLOODJHRI5HOPHWKHU1R/R ´&RXUVH·V (QGµ DQG JUHZ XS D PHPEHU RI WKH 3DGDUXLN 1R ´&ORDN /RUGVµ WULEHRIWKHeRWKUDLPLQHDVWHUQ'RU5KXQHQ :KLOHVWLOOD\RXWKDQGDZDUULRURIJURZLQJUHNQRZQ KHEHFDPHHPEURLOHGLQDORYHWULDQJOHDQGRQHQLJKW LQDGUXQNHQUDJHKHEURNHWKHQHFNRIDULYDOVXLWRULQ IURQWRIDKDOORIRQORRNHUV7KHHQVXLQJIHXGEHWZHHQ IDPLOLHV FRVW VHYHQ OLYHV EHIRUH D SHDFHIXO DJUHHPHQW ZDVUHDFKHGLQYROYLQJWKHSD\PHQWRIZLUSULNDV1R ´0DQSULFH +HDGSULFHµ DQG WKH EDQLVKPHQW RI 'LHUDJOLUIURPWKHWULEH

IX]k$\c]fek_\ =fi\jkI`m\i

.280,66 $ IULJKWHQLQJORRNLQJ 6DJDWK VROGLHU .RXPLVV /R ´)HUPHQWHG0DUH·V0LONµ LVDVTXDWEHUVHUNZDUULRUZKR GULQNVWKHEHYHUDJHDIWHUZKLFKKHKDVEHHQQDPHGWRKHOS ZRUNKLPVHOILQWRDPRXWKIRDPLQJEDWWOHIXU\WHUULEOHWR EHKROG'HVSLWHEHLQJWKHVHFRQGOLHXWHQDQWWR'LHUDJOLU·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

+$(' +DHG 1R ´%ULJKWµ LV RQH RIWKH 0DHJKLUULP 6 ´3LHUFLQJ /RUGVµ RI WKH &XOW RIWKH /RQJ 1LJKW D WKRURXJKO\GHSUDYHGDQGEODFNKHDUWHGSHUVRQGHGLFDWHG WRWKHZRUVKLSRIGDUNQHVVDQGWKHGHVWUXFWLRQRIDOOWKDW LVOLJKWDQGJRRG$KDQGVRPHIDLUKDLUHG*UDPX]PDQ LQKLVPLGWKLUWLHV+DHGDFWVDVWKHHQYR\DQGDVVDVVLQRI WKH0DHJKLUULPWUDYHOOLQJWKURXJKWKHUHJLRQRIQRUWKHUQ :LOGHUORQG WR LQVWLJDWHQHIDULRXVVFKHPHVRQ EHKDOIRI WKH&XOWRIWKH/RQJ1LJKW +DHGXVXDOO\WUDYHOV LQGLVJXLVH EXWDOZD\VWDNHVKLV KRUVHKHLVDQXQSDUDOOHOHGKRUVHPDQ DQGKLVLQWHOOLJHQW UDYHQIDPLOLDU.U\GD1R´&UHHGµ ZKRPKHKDVWDXJKW WRUHFLWHSHUYHUVHULWXDOVRIGDUNQHVV,QIDFWWKHQHXWUDOO\ RULHQWHG5DYHQGRHVQRWUHDOL]HWKHWUXHPDOLJQDQF\RIKLV PDVWHU RU WKH VLJQLILFDQFH RIWKH ZRUGV KH KDV OHDUQHG .U\GDNQRZVRQO\WKDWKLVPDVWHUWUHDWVKLPEHWWHUWKDQ RWKHUKXPDQVGRDQGUHJXODUO\IHHGVKLPIUHVKOLYHUV7KH WUXWK LV WKDW WKH PRQVWURXV +DHG KDELWXDOO\ PXUGHUV LQQRFHQWVVLPSO\WRREWDLQIUHVKOLYHUIRUKLVSHW 1$50,5Ê 1DUPLUs LV WKH \RXQJ GDXJKWHU RI &DPWKDOLRQ RI &HOHEDQQRQ.LGQDSSHGZKLOHJDWKHULQJIUXLWLQPHDGRZV HDVWRI0LUNZRRGRQO\D\HDUDJRE\EULJDQGVLQ'LHUDJOLU·V EDQG VKH ZDV VROG WR .\QRGHQ E\KHUDEGXFWRUV ZKR UHDOL]HGWKDWKHUEHDXW\DQG(OYLVKH[RWLFLVPZRXOGEULQJ DKLJKSULFHRQWKHEODFNPDUNHW.\QRGHQVPXJJOHGKHU GRZQWKH5XQQLQJ5LYHUZKHUHVKHZDVSXUFKDVHGE\D 6DJDWK VODYHWUDGHU +HVXEVHTXHQWO\VROG KHUWR +DHG ZKRKDGKHDUGRIKHUWKURXJKKLVGHDOLQJVZLWK'LHUDJOLU·V JURXSDQGVRXJKWKHURXW

:LWKORQJDXEXUQKDLUDVVRIWDVWKHILQHVWPLQNVNLQ OLNH ULFK FUHDP DQG KXJH LQWHOOLJHQW VDG H\HV RIGHHS YLROHW1DUPLUsLVJRUJHRXVOLNHRQO\RQHRIWKH)LUVWERUQ FDQEH7DOODW DQGJUDFHIXOO\VOLPVKHKDVVWROHQ WKH KHDUW RI+DHG ZKR ZRXOG QHYHU DGPLW LW ,Q VWDUN FRQWUDVW WR KLV XVXDO UHPRUVHOHVV GLDEROLFLVP WKH 0DHJKLUULPFDQQRWHYHQEULQJKLPVHOIWROD\DKDQGRQ KHU VR DWWUDFWLYH GRHV KH ILQG KHU VLOHQW VXIIHULQJ +H ZRXOGQHYHUZLOOLQJO\SDUWZLWK KHUKLVDIIHFWLRQIRUKHU GHSHQGV RQ SRVVHVVLRQ WKH ZD\ D JUHHQZLQJHG FURZ ZRXOGYDOXHDVKLQ\EDXEOH+DHGNHHSVKHUDWKLVKRPH LQWKH1DQ0RUVHUHJ6´9DOHRI%ODFN%ORRGµ LQWKH (DVWHUQ,URQ+LOOV2WKHUVRIWKH0DHJKLUULPKDYHQRWHG KLV LQRUGLQDWH DWWHQWLRQ WR WKH 5DIWHOIPDLG EXW QRQH SODQWRDFWXSRQVXFK LQIRUPDWLRQ³\HW 1DUPLUsNHHSVKHUFDSWRU·VKRPHFOHDQZKLOH+DHGLV DZD\IRUWXQDWHO\WKLVLVPRVWRIWKHWLPH 6KHLVXVXDOO\ ORFNHG LQGRRUV /RQJLQJ IRU KHU KRPH DQG KHU IDPLO\ 1DUPLUsKDVEHJXQWRQXUWXUHDIULHQGVKLSZLWK.U\GDWKH 5DYHQVKHKRSHVVRPHGD\WRFRQYLQFHWKHELUGWRUHOD\D PHVVDJHIURPKHUWRKHUNLQ

+8,/2)$029$1'-<*$127+ 2WKHU (DVWHUOLQJV LQ WKH UHJLRQ LQFOXGH WKH ZDUORUG +XLORI$PRYWKHOHDGHURI/DU+XLOLQWKHQRUWKHUQ,URQ +LOOV DQG -\DJDQRWK D OHVVHU ZDUORUG RIWKH 5HGZDWHU 5LYHUYDOOH\ZKRFRPPDQGVDIRUFHRIIRUW\ILYH6DJDWK ZDUULRUV WUDFNHUV DUFKHUV DQG VSHDUPHQ VHH 6HFWLRQ ,QWKHSDVW-\JDQRWKKDVOHGUDLGVDVIDUZHVW DV+DWKHUEROW 02*6+, 0RJVKL 2U ´0RVW &UXHOµ LV WKH HQRUPRXV LURQ FODGIDQJHG8UXNKDLFKLHIRIWKH/DU]RJXKRWK*REOLQV +LV VL]H VWUHQJWK ZDUULRU DELOLWLHV DQG FXQQLQJ DUH W\SLFDOIRUDQ2UFEXWWZRTXDOLWLHVVHWKLPDSDUWIURPWKH UHVW )LUVW KH LV DPELGH[WURXV DQG ILJKWV ZLWK D ODUJH VFLPLWDULQRQHKDQGDQGWKHWHUULEOHLURQQHW.XG]DRQJ VHH6HFWLRQ LQWKHRWKHU6HFRQGKLVPRWWOHGIXUU\ KLGHLVFRYHUHGZLWKGLVJXVWLQJO\JURWHVTXHEOXHWDWWRRV +LVSHUVRQDO2UFERG\JXDUGQXPEHUVVHYHQ

8.2*7+(/$0( 8NRJ2U´+HDGKXQJHUHUµ KDUERUVDSHFXOLDUWDVWH IRU EUDLQV DQG RIWHQ GLQHV XSRQ WKRVH RIKLV HQHPLHV VRPHWLPHVHYHQ FUDFNLQJRSHQ DVNXOORQWKHEDWWOHILHOG OLNH D VWDUYLQJ *REOLQ LPS 7KH OHDGHU RIWKH $VKDUDJ *REOLQWULEH8NRJZDONVZLWKDSURQRXQFHGOLPEZKLFK LV WKH UHVXOW RID ZRXQG VXIIHUHG GXULQJ WKH FRXS WKDW PDGH KLP FKLHI +LV WULEH LV H[WUHPHO\ VWURQJ DQG KH PDLQWDLQVDSHUVRQDOJXDUGRIWZHQW\HOLWHZDUULRUV 9$5&+$= 9DUFKD]LVD/RJDWK(DVWHUOLQJDQGWKH&DSWDLQRIWKH $QJPDULP ZDJRQ WUDLQ WKDWFDUULHV VXSSOLHV ZHVWZDUGV IURP5KQ,QFUHDVLQJUDLGVE\1RUWKURQVDQG'UDJRQV KDYHEURXJKWKLPLQWRGLVIDYRUZLWKWKH:LWFKNLQJ,Q UHVSRQVH 9DUFKD]QRZ HPSOR\V DQ HYHQ ODUJHUFDUDYDQ JXDUG³LQDGGLWLRQWRWKH$VKDUDJ2UFVZKRSURWHFWWKH ZDLQVDWQLJKWZKHQWKHFDUDYDQGRHVPRVWRILWVWUDYHOOLQJ

7:2+($'6$5( %(77(57+$121( 7KHDGYHQWXUHVLQ6HFWLRQV DQG DUHOLQNHG DQGPHDQWWREHUXQFRQVHFXWLYHO\DVDWZRSDUWVHULHV

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³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·V HYHQWXDOUHWXUQ 1RZ WKDW PRVW KRPHV KDYH EHHQ UHHVWDEOLVKHG RU RFFXSLHG E\ QHZ IRON DQG /DNHWRZQ KDV UHVXPHG LWV EULVN FRPPHUFH XS DQG GRZQ WKH /RQJ /DNH DQG WKH 5LYHU5XQQLQJVRPH UHVLGHQWV ZDQWWR UHWULHYHWKHUH PDLQGHURIWKHLUH[WHQGHG IDPLOLHV )UHDPXQG DSURPL QHQW FLWL]HQ DQG .U\Q RIRQH RI/DNHWRZQ·V PHUFKDQW HGIUHDKLU KDV EHHQ DSSRLQWHG WKH GXW\ RIRUJDQL]LQJ D WUXVWZRUWK\ JURXS WR UHSDWULDWH WKH (VJDURWK UHIXJHHV ZKRDUHVWLOOHNLQJRXWDOLYLQJLQVFDWWHUHGKRPHVWHDGVDQG YLOODJHV1R ´0DHGZHGXNDVµ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·VZKHUHDERXWV DYDLODEOH WR +UHRZDOGD WKH OHDGHU RIWKH UHIXJHHV DQG

)UHDPXQG·VVLVWHULVDUHSRUWRI´DEDQGRIEHDVWVWKDWZDON LQYLVLEOH LQ WKH QLJKW UXPEOLQJ LQFRKHUHQWO\ WR HDFK RWKHUµ,IDQGZKHQWKHSOD\HUVDUULYHVKHUHIXVHVWROHDYH IRU/DNHWRZQZLWKRUZLWKRXWWKHPDVHVFRUWVXQWLOWKH PLVVLQJ FKLOGUHQ DUH VHFXUHG RU DW OHDVW $UDZ IRUELG WKHLUERGLHVDUHDFFRXQWHGIRU 2WKHUVDPRQJWKHUHIX JHHVZLOOIROORZKHUH[DPSOH:KHQVKHKHDUV9LFODI·VOD\ DERXWWKHSOD\HU·VSUHYLRXVH[SORLWV +UHRZDOGDZLOO EH HYHQPRUHDGDPDQWLQKHUGHFLVLRQDQGLQVLVWWKHSOD\HUV ORRNIRUWKHPLVVLQJFKLOGUHQ

7+(13&6 6HYHUDORIWKHFKDUDFWHUV LQWKLVDGYHQWXUH%HRUWQRY )UHDPXQGDQG9LFODI DUHGHVFULEHGHOVHZKHUHLQ6HFWLRQ )ROORZLQJDUHVRPHRWKHULPSRUWDQWILJXUHV 81+,5:$')/$' 8QKLU:DGIODG1R ´&UXHO2QHRIWKH:RDG%OXH 6NLQµ DSSHDUVWREHD*UDPX]PDQRIVRPHWZHQW\RQH \HDUVZKRLVTXLWHIDPLOLDUZLWKWKHKLOO\FRXQWU\VLGHHDVW RI (UHERU ZKHUH +UHRZDOGD DQG D QXPEHU RI RWKHU UHIXJHHV DUH ORFDWHG )UHDPXQG KDV KLUHG WKH URXJK IHDWXUHGFRXUVHKDLUHGJURWHVTXHO\WDWWRRHGPDQLQVSLWH RILQLWLDOUHVHUYDWLRQVEHFDXVHRIKLVDELOLW\DVDJXLGH

Le_`iNX[]cX[

:f`ej

8QKLUFODLPVWREHDPHPEHURIWKH%RUJLQJDVFODQDQG LQIDFWKLVDVVHUWLRQLVSDUWO\WUXHDOWKRXJKQR%RUJLQJDV PHPEHUZRXOGUHFRJQL]HKLPDVNLQ8QKLU·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´6WRQ\5LGJHµ 7KHRQO\UHDVRQKHKDVDFFHSWHGHPSOR\PHQWDVDJXLGH IRUWKH3&VLVEHFDXVHKHSODQVWRPXUGHUWKHPLQWKHLU VOHHS DQG VWHDO WKH DGYDQFH SD\PHQW WKH SOD\HUV KDYH UHFHLYHGIURP)UHDPXQG+HKDVQRLQWHQWLRQRIDFWXDOO\ FDUU\LQJRXWKLVDVVLJQHGWDVN

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

+5(2:$/'$ 7DOODW DQGEURDGVKRXOGHUHGOLNHKHUEURWKHU )UHDPXQG+UHRZDOGD1R´6DG*ULHYLQJ:RPDQµ LV D QDWXUDO OHDGHU DQG WKH UHIXJHHV IURP /DNHWRZQ VFDW WHUHGWKURXJKWKHKLOOVHDVWRIWKH8SSHU&HOGXLQDQGWKH /RQJ/DNHUHO\RQKHU6KHEOD]HGDWUDLOWRWKHDUHDDIWHU WZRRIKHUFKLOGUHQKHUPRWKHUDQGRQHRIKHUEURWKHUV GLHGLQWKH 3ODJXHVKHORVWKHUKXVEDQGWRWKHVFRXUJH DORQJWKHZD\ 6LQFHWDNLQJXSUHVLGHQFHDW3HQVWRZ1R´+LOO5HI XJHµ VKH KDV WDNHQ RQ PDQ\UROHV DV FDSWDLQ VKHKDV UDOOLHGWKHVFDWWHUHGUHIXJHHVDJDLQVWGLVHDVHGLQWUXGHUVDV QXUVHVKHKDVWHQGHGKHUVRQ9RODI1R´3ODJXH6XUYL YRUµ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´/RQJKRXVHVµ +HU KDQGV DUH OLNH EUHDG SDGGOHV³ EURDG IODW DQG KDUG ZLWK FDOORXVHV IRU EHIRUHVKH OHIW /DNHWRZQVKHZDVDVNLOOHGHPEURLGHUHUDQGDUHVSHFWHG PHPEHURIWKHFORWKLHU·VHGIUHDKDUWKH&ODWKZ\UNHQGDV :LWKLQWKHODVWIHZ\HDUV+UHRZDOGDKDVEHFRPHUDWKHU JDXQWIRUKHUODUJHIUDPHVKHLVIRUW\IRXU\HDUVROG EXW VKHUHWDLQVDQXQZDYHULQJSDOHEOXHJD]HDQGLVSURILFLHQW ZLWKKHUODWHKXVEDQG·VEURDGVZRUGFRPSRVLWHERZDQG VSHDU6KHLVKHOGLQWKHKLJKHVWUHJDUGE\DOORIWKHUHIXJHHV LQ WKH YLFLQLW\ DQG WKH\ ZLOO DGKHUH WR KHU DGYLFH DQG GHFLVLRQVZLWKRXWTXHVWLRQ

92/$) 7KH\RXQJHVWVRQRI+UHRZDOGDDQGWKHMXQLRUEURWKHU RI9LFODI9RODI1R´3ODJXH6XUYLYRUµ LVDUHPDUNDEO\ DGHSWRXWGRRUVPDQIRUKLVWZHOYH\HDUVRIDJH4XLWHWKLQ KHVWLOOEHDUVVFDUVRQKLVIDFHDQGQHFNIURPDERXWZLWK WKH3ODJXHWZR\HDUVDJR+HFDQVKRZSOD\HUVZKHUHWKH ILYH FKLOGUHQ ZHUH ODVW VHHQ RQ WKH HYHQLQJ RI WKHLU GLVDSSHDUDQFHDQGDIWHUDEULHIVHDUFKRIWKHVXUURXQGLQJ DUHD ZLOO GLVFRYHU VHYHUDO KXJH IRRWSULQWV 6NHVVD·V %HFDXVH KH LV IDPLOLDU ZLWK WKH UHJLRQ DQG NQRZV WKH PLVVLQJ FKLOGUHQ KHZLOO LQVLVWXSRQ DFFRPSDQ\LQJWKH 3&V +UHRZDOGD FRQILGHQW LQ KHU RIIVSULQJ·V VHOIUHOL DQFHZLOOFRQFXU

6.(66$ 6NHVVD %6 µ6KHWUROOµ LV WKH KLGHRXV +DOIWUROO KDOI*LDQWHVV³D JURWHVTXH UHVXOW RI EUHHGLQJ H[SHUL PHQWVFRQGXFWHGE\6DXURQ·VPLQLRQVLQWKH6HFRQG$JH 6KHKDVLQKHULWHGWKHVL]HRIKHU6WDQHRWDQ1R´6WRQH *LDQWµ DQFHVWU\FRXSOHGZLWK WKHJURVVGHIRUPLW\DQG ODFN RI SURSRUWLRQ RI KHU 7UROOLVK VLGH 2EHVH DQG IDQWDVWLFDOO\VWURQJ ZLWKIDWNQREE\DUPVUHDFKLQJSDVW KHUFURRNHGNQHHV6NHVVD·VVWDQGV IURPWKHFDOORXVHG VROHVRIKHUKXJHFODZHGIHHWWRWKHKDLU\PRWWOHGJUH\ JUHHQ VXPPLW RIWKH KXPSV WKDW WRS WKH WZR UHSXOVLYH KHDGVMXWWLQJIURPEHWZHHQKHUEURDGVKRXOGHUV 7KHWZRKHDGVWKLQNDQGRSHUDWHVRPHZKDWLQGHSHQ GHQWO\ DQG WKHLU SHUVRQDOLWLHV GLIIHUVLJQLILFDQWO\ 7KH\ ELFNHU ORXGO\ DQG LQFHVVDQWO\ DQG WKHLU GLVDJUHHPHQWV VRPHWLPHVHVFDODWHLQWRSXPPHOOLQJPDWFKHVEHWZHHQWKH WZRVLGHVRI6NHVVD·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

,QFRQWUDVWWKHZLWOHVV7UROOLVKULJKWKHDGLVFDSDEOH RQO\RIEUDVKDQGDJJUHVVLYHEUXWDOLW\,WSUHVHQWVDQHYHU SUHVHQW GDQJHU WR WKH NLGQDSSHG FKLOGUHQ DQG WR WKH 3&V SDUWLFXODUO\ ZKHQ WKH OHIW KHDG LV DVOHHS )RUWX QDWHO\ WKH LGLRF\ RI KHU 7UROOLVK KHDG KDV WKXV IDU VDERWDJHGLWVKRPLFLGDOLPSXOVHVWRZDUGVWKHDEGXFWHHV ZKHQ6NHVVD·VPRUH*LDQWLVKVLGHKDVQRWEHHQDZDNHWR LQWHUYHQH7KHULJKWKHDGOROOVDODUPLQJO\RQDUDWKHUZHDN QHFN DQG WKH IDQJHG PRXWK ZKHQ QRW GURROLQJ ORQJ JOREXOHV RI VSLWWOH RQ HYHU\WKLQJ LQ VLJKW PDLQWDLQV EHUDWHVLWVFRPSDQLRQKHDG6NHVVD·VULJKWKDQGNHHSVXS DGLVJXVWLQJKDELWRILWFKLQJDQGVFUDEEOLQJIRUWKH6KH WUROO VXIIHUV IURP VHYHUHHF]HPD 6NHVVDZHDUVQRVKRHVEXWGUHVVHVLQDORQJEHGUDJJOHG VKLIWRIWKLFNSHUVSLUDWLRQVWDLQHGEOXHZRROWKDWEDUHO\ FRQWDLQVKHUEORDWHGFURRNHGWRUVR7KHIUD\HGKHPRI WKHJDUPHQWLVFUXVW\IURPWUDLOLQJWKURXJKDOOPDQQHURI ILOWK DQG WKH ORZ FXW QHFN UHYHDOV D JUHDV\ FOHDYDJH EULVWOLQJZLWKFRDUVHZLU\KDLU

7+($%'8&7('&+,/'5(1 )LYH /DNHIRON FKLOGUHQ ZHUH NLGQDSSHG E\ 6NHVVD IURP WKH UHIXJHH PDHGZH $XQHJLOG 1R ´*ROGHQ >KDLUHG@*LIWµ LVWKHHOGHVWDQGPRVWFDSDEOHDWWKLUWHHQ \HDUV *XQGHIXO 1R ´6HOI,PSRUWDQWµ LV WKH VHFRQG ROGHVWDWHOHYHQ\HDUVDQGKDVEHHQPRUHRIDKLQGUDQFH WKDQDKHOSE\UHVLVWLQJDOO$XQHJLOG·VDWWHPSWVWRFRPIRUW DQGRUJDQL]HWKH\RXQJRQHV7KHRWKHUWKUHH+LOGHJHUQ 1R´%DWWOH/XVWµ (IIR1R ´%RDUµ DQG*RGHJLVLO 1R ´3UHFLRXV+RVWDJHµ DUHDJHQLQH VHYHQDQGVL[ UHVSHFWLYHO\*RGHJLVLOKDVSRRUH\HVLJKWDQGKDVFRPHWR IHHO D FHUWDLQ DPRXQW RISLW\ IRU KHU 6KHWUROO FDSWRU 1RQHRIWKHFKLOGUHQKDV\HWEHHQLQWHQWLRQDOO\KDUPHGE\ 6NHVVD

7+(6(77,1* 3(1672: 3HQVWRZ1R´+LOO5HIXJHµ WKHKRPHVHWWOHPHQWRI +UHRZDOGDFORVHO\UHVHPEOHVRWKHUQHLJKERULQJPDHGZHQ 1R´&URIWV)DUPVµ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

M`Z`e`kpf] Jb\jjX_fcZ

7+(9,&,1,7<2) 6.(66$+2/& 7KH FDYHUQ UHVLGHQFH RI6NHVVDOLHVVRPH OHDJXHV QRUWKHDVW RIWKH /DNHIRON UHIXJHH PDHGZHQ $ FOXPV\ WUDLOZKLFK PD\EHIROORZHG ZLWK VHYHUDO 1RUPDO 7UDFNLQJ UROOV LV VFDWWHUHG ZLWK PDWFKLQJ SLHFHV RI FORWKLQJIURPWKHVKLUWRIRQHFOHYHUDEGXFWHH$XQHJLOG ,WOHDGVDFURVVWKHRDNVDYDQQDKWRDGHQVHIRUHVWRQWKH VORSHVRIDVWHHSKLOO

)RRWSDWK$ZHOOZRUQWUDFNWKHPDLQSDWK WR 6NHVVDKROF FXWV WKURXJK WKH ZRRGV DQG OHDGVXSWKHVLGHRIDVWHHSKLOOVSRWWHGZLWK URFN\RXWFURSV(DV\WRIROORZ 3OD\ HUV IROORZLQJ WKH WUDLO IURP WKH /DNHIRON PDHGZHQZLOODSSURDFK6NHVVD·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

6.(66$+2/& 'XWFK'RRU%HQHDWKDVOLJKWRYHUKDQJD E\ GRRU ZLWK KHDY\ LURQ KLQJHV DQG ULQJ KDQGOHV EORFNV WKH HQWUDQFHLQWRWKHVLGHRIWKHKLOO7KHWRSKDOIRIWKHVSOLW ´'XWFKµ GRRURIVWRXWRDNLV DOPRVWDOZD\VRSHQ ZLGH H[FHSWGXULQJWKHIRXUKRXUV RUVRDURXQG QRRQ ZKHQ 6NHVVDUHWXUQVWRKHUEHG :KHQVKXWWKHSRUWDOUHPDLQV XQORFNHGEXWLWLVEDUUHGIURPWKHLQVLGH7KHVWHQFKRI VZHDW KDQJV KHDY\ DERXW WKH HQWUDQFH DQG WKURXJKRXW 6NHVVDKROF1R´6NHVVD·V+ROORZµ

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·V ODUJH EURRP %HNVPD VHH 6HFWLRQ LV SURSSHG LQWKHQRUWKHDVWFRUQHURIWKH FKDPEHUZKHQ6NHVVDLVQRWXVLQJLW /DUGHU'RZQDORQJVWHHSO\VORSHGIORZVWRQHZKLFK LVVOLSSHU\LQSODFHVUHTXLULQJD0HGLXP PDQHXYHUWRWUDYHUVHZLWKRXWLQ FLGHQW OLHV D ODUJH FKLOO\ FDYHUQ XVHG E\ 6NHVVD WR VWRUH IRRG 3RWWHU\DQGVWRQHMDUVRIPHDW ´MHOOLHVµVDFNVRIJUDLQVDQG WXEHUVZKHHOVRIFKHHVHDQG QXPHURXVEDUUHOVDQGFDVNV RIDOHZLQHDQGDSSOHVDUH VWDFNHGLQQRRNVDERXWWKH FKDPEHU+HUEVURRWVWX EHUVDQGFDUFDVVHVRIVKHHS DWHQODVQDNHVOL]DUGVHWF KDQJ IURP WKH FHLOLQJ DURXQGWKHSLOODUWKDWVWDQGV LQWKHFHQWHURIWKHFDYH 6HUYDQWV·4XDUWHUV $ KRO ORZDUHDZKHUHWKHNLGQDSSHGFKLO GUHQ QRZVHUYDQWV VOHHS ZKHQ QRW SHUIRUPLQJFKRUHV 6HYHUDO SLOHVRIVWUDZ DQG EODQNHWV OLHVFDWWHUHG DERXWWKHDUHD7KH

FHLOLQJKHUHYDULHVEHWZHHQ DQG KLJKDQGWKHVRXWK HDVWHUQH[LWGURSVRYHUD·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·VVL]HDQGZHLJKWDWWHPSWVWRXVHWKHVWRROLWZLOO UHDUXS DQG EHJLQ JDOORSLQJ DERXW WKH URRP DW · SHU URXQGGHOLYHULQJD0%DDWWDFNWRDQ\RQHZKRIDOOV RIIE\IDLOLQJDQ([WUHPHO\+DUG5LGLQJPDQHXYHU %HGURRP$ODUJHFKDPEHUGRZQDORQJ FRUULGRU ZLWKDKLJK FHLOLQJDQGGDPSZDOOVWKLVFDYHUQVHUYHV DV6NHVVD·VEHGURRPGXULQJWKHUDUHSHULRGVZKHQERWKRI KHUKHDGVDWWHPSWDVOHHSJHQHUDOO\DURXQGQRRQHDFKGD\ IRUQRORQJHUWKDQIRXUKRXUV 6KHXVHVDYDVWSLOHRIQLW DQGIOHDLQIHVWHGKD\DVDEHGUHVWLQJKHUKHDGVDJDLQVWD VL]HDEOH LURQERXQG ZRRGHQ FKHVW 7KH VPHOO RIVZHDW DQG XULQH LV HYHUSUHVHQWKHUH SDUWLFXODUO\ LQ WKH DOFRYH ZKHUH6NHVVDNHHSVKHUHQRUPRXVKHDY\GXW\VWRQHFKDP EHUSRW

Jb\jjX_fcZ

$ EOXHJUHHQ JODVV MDU FRQWDLQLQJ UHFHQWO\ FROOHFWHG )LUHIOLHVLOOXPLQDWHVD FLUFOHZLWKDQHHULHJORZIURPLWV UHVWLQJSODFHDWRSWKHFKHVWZKLFKLVORFNHG+DUG WR3LFN DQGFRQWDLQV ³FSPDQ\IURPYHU\DQFLHQWDQGGLVWDQWPLQWV ³VSZLWKSURYHQDQFHVOLNHWKHFSDERYH ³JSZLWKSURYHQDQFHVOLNHWKHFSDERYH ³VLOYHUULQJVPDQ\DUHOLQNHGWRJHWKHUZRUWK VSHDFK ³JROGEHDGVVSHDFK ³JROGEHDGVHDFKLQVHWZLWKDJDUQHWVS HDFK ³PLOOHILRULJODVVEHDGVVSHDFK ³FDUYHGERQHFRPEVVSVS ³DJROGULQJRILQWHUODFHGVQDNHVZLWKZLUH GHFRUDWLRQVS ³DWZLVWHGUHGJROGDUPEDQGVS ³DEHOWEXFNOHRIQLHOORLQODLGVLOYHUVS ³DVPDOODQQXODUJROGEURRFKVHWZLWKFRORUHG JODVVVS ³PDWFKLQJEURQ]HVTXDUHKHDGHGEURRFKHV ODUJHVS DQGVPDOOVSHDFK ³DVPDOOEURQ]HEDODQFHZKLFKPDJLFDOO\JUDQWVD ERQXVWRDOOEDUWHULQJDQGWUDGLQJWUDQVDF WLRQVVS ³DODUJHVLOYHUHZHUVHWZLWKEHU\OVVS ³EURQ]HJREOHWVVSHDFK ³3RQ\UXVKHVVHH6HFWLRQ ³ (QFKDQWHG&DWWDLOVHH6HFWLRQ ³D µORQJ$VKUXQHVWLFNZKLFKFDVWV&XW5HSDLU ,,,RQFHDGD\RQZRXQGVLWLVSUHVVHGDJDLQVWD 9HU\+DUG3HUFHSWLRQUROOZLOOGHWHUPLQH WKDWWKHGDUNVWDLQVRQWKHLWHPDUHGULHGEORRG DQG ³DIDW·ORQJ$VKUXQHVWLFNZKRVHWUXHQDWXUHDVD VFUROOFDVHPD\EHLGHQWLILHGZLWKD+DUG 3HUFHSWLRQUROOFRQWDLQVWLJKWO\UROOHGVKHHWV RIUXQHSDSHURQHZLWKDOHYHO)RJ&DOOVSHOO DQGRQHZLWKDOHYHO6WXQ&ORXGVSHOO

7+(7$6. 7KLVDGYHQWXUHLVQRWZKDWLWZLOODWILUVWDSSHDUWREH WRSOD\HUV7KHSORWLVWZRIROGWUDYHOOLQJRYHUODQGWRDQ DUHD LQKDELWHGE\/DNHWRZQ 3ODJXHUHIXJHHVDQGPRUH LPSRUWDQWO\GHDOLQJZLWKWKH6KHWUROO6NHVVDDQGUHVFX LQJWKHFKLOGUHQVKHKDVNLGQDSSHG7KHRULJLQDODVVLJQ PHQWRIHVFRUWLQJWKHUHIXJHHVKRPHWR(VJDURWKGRHVQRW RFFXUXQWLO LISOD\HUVDUHVXFFHVVIXO LQWKHFXUUHQW DGYHQWXUH

67$57,1*7+(3/$<(56 ,IWKH\ KDYH VXFFHVVIXOO\ FRPSOHWHG 6HFWLRQ WKH 3&V KDYH GHPRQVWUDWHG WKHLUKRQHVW\DQG LQWHJULW\DQG ZLOO EH VRXJKW RXW E\ %HRUWQRY D ERDW FDSWDLQ LQ WKH

HPSOR\RI)UHDPXQGZKRZLOOH[SODLQWKHVLWXDWLRQDQG WDNH WKHP WR PHHW KLV ERVV7KH SOD\HUV ZLOO SUREDEO\ QRWLFH)UHDPXQG·VSROLWLFDOFORXWDQGUHFRJQL]HWKHLP SRUWDQFHRIWKHHQGHDYRUWKH\DUHWRXQGHUWDNHZKHQWKH\ JR WR PHHW WKH PHUFKDQW DQG ILQG 2GDJDYLD DOUHDG\ GLVFXVVLQJWKHVLWXDWLRQZLWKKLP 2IFRXUVH LWLVQRWXQWLOWKH\UHDFK3HQVWRZWKDWWKH SOD\HUV ZLOOKDYHWRGHDO ZLWKWKHPDLQSUREOHP LQWKLV DGYHQWXUH³6NHVVD(VVHQWLDOO\WKHLUUHVSRQVLELOLW\LVWR LQYHVWLJDWHWKHGLVDSSHDUDQFHRIWKHFKLOGUHQWUDFN6NHVVD WRKHUODLUGHDOZLWKWKHWZRKHDGHG6KHWUROODQGVHFXUH WKHUHOHDVHRIWKHNLGQDSSHGFKLOGUHQ

$,'6 9LFODI·V JXLGDQFH DQG LQIOXHQFH ZLWK KLV PRWKHU +UHRZDOGD ZLOO SURYH XVHIXO RQFH WKH SOD\HUV UHDFK 3HQVWRZ9RODI·VWUDFNLQJVNLOOVDUHQRWH[FHSWLRQDOEXWLI QR3&VDUHPRUHFRPSHWHQWWKH\ZLOOEHRIPXFKXVHLQ IROORZLQJ 6NHVVD·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·VREVWLQDF\PD\EHVHHQDVDKLQGUDQFHWR 3&VFDUU\LQJRXWWKHPLVVLRQIRUZKLFK)UHDPXQGKLUHG WKHPEXWLQIDFWKHUUHIXVDOWROHDYHXQWLOWKHIDWHRIWKH PLVVLQJFKLOGUHQLVNQRZQLVHQWLUHO\UHDVRQDEOH6NHVVDLV D GHFLGHGO\ PHUFXULDO SHUVRQDOLW\ +HU IUDPH RIPLQG GHSHQGVXSRQZKLFKPLQGLVGRPLQDQW³WKHULJKWKHDG WKHOHIWRUERWK7KLVUHOLHVDJUHDWGHDOXSRQFKDQFHWKH WLPHRIGD\DWZKLFKWKHSOD\HUVHQFRXQWHUKHUDQGKRZ WKH\GHDOZLWKWKHLQLWLDOPHHWLQJ

5(:$5'6 7KHUH ZLOO EH SUHFLRXV OLWWOH UHZDUG XQWLO RU LI WKH SOD\HUVUHWXUQVDIHO\WR(VJDURWKZLWKWKHUHIXJHHVDVLGH IURPWKHFRRSHUDWLRQRI+UHRZDOGDDQGWKHRWKHUJUDWHIXO UHIXJHHV )UHDPXQG SURYLGHV D WKLUG RI KLV SURIIHUHG SD\PHQW RI VS SHU SOD\HU LQ DGYDQFH WR SURYLGH LQFHQWLYH9LFODILVOLDEOHWRFRPSRVH DQRWKHUOD\DERXW KRZ WKH ´EROG DQG LQGRPLWDEOHµ 3&V GHDOW ZLWK WKH ´IHDUVRPHPDQ\KHDGHGRJUHµ6NHVVDORRVHO\EDVHG RQ WKHH[DJJHUDWHGWDOHVRIKLVEURWKHU9RODI'HSHQGLQJRQ KRZWKH3&VEHVW6NHVVDWKH\PD\DFTXLUHDPDJLFLWHP RUVRPHRIKHUVXEVWDQWLDOWUHDVXUHDVDUHZDUGIRUWKHLU FRPSDQ\ ZKLFK WKH\ PD\ VXEVHTXHQWO\ EH IRUFHG WR GLVSHQVHZLWKGXULQJWKHIUDQWLFUHWXUQMRXUQH\WR(VJDURWK LQ6HFWLRQ

(1&2817(56 :$')/$' :DGIODGLVTXLWHUHVHUYHGDQGZLOOVSHDNDVOLWWOH DV SRVVLEOH ZLWK WKH 3&V GXULQJ WKHLU MRXUQH\ WR JHWKHU%HFDXVH9LFODILVVRERLVWHURXVO\IULHQGO\WKH SDUW\PD\QRWHYHQQRWLFH:KHQKHGRHVVSHDNLWLV XQXVXDOO\WRFRQWUDGLFWRUFULWLFL]H $IWHUVHYHUDO GD\VRIWUDYHO:DGIODG ZLOOFKRRVH RQHRIWKHHYHQLQJVWKH*0·VGLVFUHWLRQ WKHJURXS FDPSVLQWKHZLOGVWRDPEXVKWKH3&V,IDZDWFKLV NHSWKHZLOOYROXQWHHUIRUWKHODWHVKLIW,ISOD\HUVDUH QRW DOUHDG\VXVSLFLRXV WKLV ZLOO SUREDEO\WLSWKHP RII $IWHU KH EHOLHYHV WKH 3&V DUH DVOHHS WKH KDOI *REOLQ ZLOO WU\ WR PXUGHUWKH FKDUDFWHUV DQG VWHDO WKHLU YDOXDEOHV $OHUW FKDUDFWHUV VKRXOG KDYH OLWWOH GLIILFXOW\IRLOLQJKLVSODQVEXWLWLVLPSRUWDQWIRUWKH DGYHQWXUHLQ6HFWLRQ WKDW:DGIODGHVFDSHDOLYH DQG IOHH $ IRROLVK JURXS FRXOG ORVH VHYHUDO 3&V EHIRUHWKH\WKZDUWWKHDVVDVVLQ·VSODQV

6.(66$ 7KH SOD\HUV·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´VWD\IRUVXSSHUµ ZKLFKZLOOSUREDEO\PDNH3&VOHHU\ ,IWKHSOD\HUV DJUHHVKHZLOOEHJLQWRSUHSDUHVRPHWKLQJLQKHUKXJH FDOGURQ +HFJDWD LIQRWGRLQJ VR DOUHDG\³VHH WKH DFWLYLW\WDEOHEHORZ DQGJHWRQHRIWKHFKLOGUHQWR VWLUWKHEUHZIRUKHU ,QWKHPHDQWLPHWKH+DOIWUROOZLOORIIHUWKH3&V GULQNLQJKRUQVILOOHGZLWK1RUWKURQEHHU7KHSRU ULGJH VKH FRQFRFWV LV VHUYHG LQ KXJH VWRQH ERZOV ZKLFKVKHZLOOODGOHRXWZLWKWKHSDGGOH%DGUDQW6KH LVEDGZLWKQXPEHUVDQGZLOOVHUYHXSRQHGLVKWRR PDQ\7KHJUXHOVPHOOVDZIXODQGWDVWHVHYHQZRUVH 7UHDWLWDVDOHYHOSRLVRQIRUWKRVHEUDYHHQRXJKWR FRQVXPH LW ZLWK IDLOXUHUHVXOWLQJLQ KRUULG VRXQGV IURP WKH XQIRUWXQDWH·V ORZHU LQWHVWLQDO WUDFN DQG PLOG LQFDSDFLWDWLRQWRDOODFWLYLW\GXHWRQDXVHDODVWLQJ KRXU SHU 5HVLVWDQFH UROO IDLOXUH 6NHVVD ZLOO EH RIIHQGHGLIWKHJURXSUHIXVHVWRHDWKHUFRRNLQJRQFHLWKDV EHHQVHUYHGDOWKRXJKVKHPLJKWQRWQRWLFHWKHPHPSW\ LQJLWRQWRWKHIORRU 6KHPD\FRXQWHUWKHLUUXGHQHVVZLWK DJJUHVVLRQ

,IWKHSOD\HUFKDUDFWHUVILUVWHQFRXQWHU6NHVVDZKHQKHU ULJKW7UROOLVKKHDGLVGRPLQDQWWKH\ZLOOEHDWWDFNHGDW WKHVOLJKWHVWSURYRFDWLRQ,IWKH\KXUWWKH6KHWUROOVLJQLIL FDQWO\EHIRUHKHUOHIWKHDGDZDNHVVKHZLOOILJKWWKHPWR WKH ELWWHUHQG EXW LIEORZVRUMRVWOLQJDZDNHQV KHUOHIW *LDQWLVK KHDG EHIRUH VKH KDV VXVWDLQHG VHULRXV LQMXU\ PRUH OLNHO\ KHU OHIW VLGH ZLOO VODS KHU ULJKWVLGH LQWR WHPSRUDU\VXEPLVVLRQDQGWKHQLQYLWHWKH3&VWR´VWD\IRU VXSSHUµDVDERYH

Jb\jjX k_\?Xc]$kifcc

,I WKH SDUW\ EURDFKHV WKH TXHVWLRQ RI WKH PLVVLQJ )RUDJLQJKXQWLQJIHWFKLQJZDWHURXWGRRUV FKLOGUHQZLWK6NHVVD·V*LDQWLVKKHDGVKHZLOODWILUVWIHLJQ 8QOLNHO\GXULQJEULJKWVXQOLWKRXUV LJQRUDQFH QRW GLIILFXOW IRU WKH 6KHWUROO DQG WKHQ 6ZHHSLQJFOHDQLQJKRXVHDQ\ZKHUHLQGRRUV VXJJHVWDFRQWHVWIRUWKHSRVVHVVLRQRIWKHFDSWLYHV7KH QDWXUHRIVXFKDFRPSHWLWLRQVKRXOGEHOHIWXSWRWKH3&V 2QDUDPSDJHDQ\ZKHUHLQGRRUVRUQHDUE\ RXWGRRUVEXWOLDEOHWREHKDUDVVLQJWKHNLGQDSSHG WRVXJJHVW EXW WKH\KDYHDIDUEHWWHUFKDQFHDWDULGGOH FKLOGUHQRUWKH3&V RQO\SRVVLEOHLI7UROOLVKKHDG JDPHRUVRPHRWKHUWHVWRIZLWWKDQWKH\GRLQDFRPSHWL LVDZDNHRWKHUZLVHUHUROO WLRQ RIVWUHQJWK 6NHVVD·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·66&+('8/( &OHDQLQJKRXVHDQ\ZKHUHLQGRRUV 6NHVVDPDLQWDLQVDQHUUDWLFVFKHGXOHZLWKHDFKRIKHU 6.(66$·65,''/(6 KHDGVJUDEELQJVKRUWQDSVDWLUUHJXODULQWHUYDOV$OWKRXJK 0\EUHDWKPDNHVEULJKWWKHIDGLQJEUDQGV,IHHG VKH LV DEOH WR ZLWKVWDQG WKH OLJKW RIGD\ 6NHVVD PXFK WKH EODFNVPLWK·V IRUJHILUH%HOORZV SUHIHUVRYHUFDVWZHDWKHUDQGWKHGDUNRIWKHHYHQLQJ)RU 6WURQJDVLURQGXOODVVWRQHEODFNEORRGHG DERXWDIRXUKRXUSHULRGFHQWHULQJDURXQGQRRQHDFKGD\ JQDZVERQH7UROO VKHUHWLUHVWRKHUEHGURRPWROLHGRZQDOWKRXJKRIWHQDW OHDVWRQHRIKHUKHDGVUHPDLQVDZDNHWKURXJKDOORUSDUW %ROWVZLWKQRGRRUERRPVZLWKQRGUXP RIWKLVWLPHVSDQ 'XULQJRWKHUWLPHVXVHWKHIROORZLQJ WXPXOWXRXVWHDUVGUHQFKHYHU\RQH7KXQGHU WDEOH WR GHWHUPLQH WKH 6KHWUROO·V VWDWH RIPLQG UROO VWRUP G 7LQWHGWUHVWOHVKRZHUVSDQFRORUEULGJHDUFK RYHUODQG5DLQERZ %RWKKHDGVDZDNHUROODQRWKHUG ,QGHHSFDYHV,PDNHP\ODLUDQGRSHQYDOOH\V ELFNHULQJ YDVWWKRVHZKRPRFNPHVKRXOGEHZDUH,DOZD\V WHPSRUDULO\JHWWLQJDORQJ ODXJKODVW(FKR SK\VLFDOGLVSXWHEHWZHHQWKHWZRVLGHVRI %XWFKHUVEDNHUVEDUUHOPDNHUVPHUFKDQWV 6NHVVD·VERG\ ZDUULRUVVHUYDQWVERZ\HUVVNiSDUVVFRSV *LDQWLVKOHIW KHDGDZDNH6NHVVDPRUH VWDEOHUVVDLORUVWLQNHUVWKDWFKHUVWDQQHUVWDLORUV UHDVRQDEOHZLOOLQJWREDUJDLQRUFRPSHWHLQDULGGOH $OODOODUHWKUDOOVWRP\UDYHQRXVKXQJHU JDPH 7UROOLVKKHDGVQRULQJDQGRUGURROLQJDQG 3ODJXH RUGULSSLQJVQRW ,·YHFDVWRIIP\JUHHQPDQWOHLQWRWKHHYHQLQJ EOD]H7HDUVZHOOXSLQVLGHRIPHUXQGRZQP\ 7UROOLVKULJKW KHDGDZDNH6NHVVDOLDEOHWR IXUURZHGIDFH
+20(:$5' %281'

7KLVDGYHQWXUHLVWKHVHFRQGSDUWRIDPLQLFDPSDLJQ FRPSULVHGRI6HFWLRQVDQG6HFWLRQVKRXOG EHUXQWRVHWXSWKHFLUFXPVWDQFHVIRUWKLVVHFWLRQ

5$&,1*$%/8(675($. 8SRQ UHWXUQLQJ WR +UpRZDOGD·V PDHGZHGXNDV 3HQVWRZIURP6NHVVDKROFVHH6HFWLRQ WKHSOD\HU FKDUDFWHUVZLOOEHPHWE\DODUJHJURXSRIUHIXJHHVZKRVH IDUP DQLPDOV DQG VHYHUDO ZDLQV IXOO RISRVVHVVLRQV DUH FDPSHG DURXQG WKH KRPHVWHDG $V SURPLVHG ZKLOH WKH DGYHQWXUHUVZHUHGHDOLQJZLWK6NHVVDDWWHPSWLQJWRUHV FXHWKHDEGXFWHGFKLOGUHQ+UpRZDOGDDQG9LFODIRUJD QL]HGWKHUHIXJHHVIRUWKHMRXUQH\KRPH7KHHQWLUHJURXS /DNHIRONDSSUR[LPDWHO\ LQ QXPEHU ZLOO EH UHDG\ IRUWUDYHOE\WKHGDZQRIWKHWKLUGGD\DIWHUWKHLUJXLGHV JXDUGVWKH3&V UHWXUQWR3HQVWRZ7KHSODQQHGURXWHLV WRUHWUDFHWKH3&V·MRXUQH\KHUHWUDYHOLQJILUVWWR'DOHDQG WKHQVRXWKWR(VJDURWKDORQJWKH/RQHO\0RXQWDLQ5RDG 6´0HQLQ(UHERUµ1R´'DOHZHJµ 8QNQRZQWRWKH3&VDQGWKHUHIXJHHV8QKLU:DGIODG VHH KDYLQJ HVFDSHG IURP D IRLOHG PXUGHU UREEHU\ DWWHPSW RQ WKH 3&V HQ URXWH WR 3HQVWRZ LQ 6HFWLRQ IOHGQRUWKWRWKH/DU]RJXKRWKVWURQJKROG ZKHUHKHZDVERUQDQGUHDUHG5HDOL]LQJWKDWKHZRXOGQRW EHDEOHWRJREDFNWR(VJDURWKDVORQJDVWKH3&VDUHDOLYH WKH+DOIRUFUHWXUQHGWRWKHSODFHRIKLVELUWKDMRXUQH\ RIVRPHWKUHHGD\V6HHNLQJWRPDNHUHSDUDWLRQVZLWKWKH WULEHKHKDGGHVHUWHG:DGIODGRIIHUHGLQIRUPDWLRQDERXW WKH UHWXUQ MRXUQH\ RI WKH UHIXJHHV H[DJJHUDWLQJ WKHLU ZHDOWKDQGZHDNQHVVWRHQKDQFHKLVJDPEOHWKDWVXFKDWDOH ZRXOG LQWHUHVW WKH /DU]RJXKRWK OHDGHU 0RJVKL DQG LQFUHDVHWKHOLNHOLKRRGWKDW:DGIODGZRXOGEHUHDFFHSWHG LQWRWKHWULEH7KH+DOIJREOLQHPSKDVL]HGWKHH[FOXVLY LW\ RIKLV LQIRUPDWLRQ SOD\LQJ XS WKH QHFHVVLW\ RIKLV VHUYLQJDVDJXLGHIRUD2UFLVKUDLGLQJSDUW\ +LV SODQ ZDV RQO\ SDUWLDOO\ VXFFHVVIXO 0RJVKL ZDV LQWHUHVWHGWRKHDURIWKHUHIXJHHVEXWQRWSOHDVHGWRVHHWKH GHVHUWHU:DGIODG$IWHUMXVWDQKRXURIHODERUDWHWRUWXUH WKH+DOIRUFUHYHDOHGWKHURXWHRIWKHUHWXUQLQJUHIXJHHV +LVFDSWRUVILQLVKHGKLPRIIDQGLPPHGLDWHO\PXVWHUHGD UDLGLQJSDUW\WRDPEXVK WKHUHIXJHHV 7KH UDLGLQJ SDUW\ FRPSRVHG RI *REOLQV DQG :ROYHVPDGHDEHHOLQHIRUWKHFURVVURDGVZKHUHWKH*UH\ 0RXQWDLQ 5RDG 6 ´0HQ 0LWKULQµ1R ´*UDLJZHJµ PHHWVWKH HDVWZHVWWUDLO FRQQHFWLQJ'DOH DQG 3HQVWRZ $IWHUFRYHULQJRYHUPLOHVLQKRXUVZLWKRXWVWRS SLQJHYHQGXULQJWKHFORXG\VXQOLWKRXUVRIWKHSDVWVHYHUDO GD\V WKH2UFVVHWXSFDPSEHQHDWKWKHHDYHVRIDVPDOO FRSVH RIKLFNRU\DQG RDN WUHHV DORQJVLGHWKHURDG IRUN 6FRXWV ZHUH GLVSDWFKHG WR KHDG HDVW DQG GHWHUPLQHWKH PRYHPHQWRIWKHDSSURDFKLQJUHIXJHHVZKLOHWKHUHVWRI WKHUDLGLQJSDUW\UHVWHGDQGSUHSDUHGIRUWKHDQWLFLSDWHG DPEXVK DQG URXW +HQFH MXVW ILYH GD\V DIWHU WKH 3&·V

HQFRXQWHU ZLWK :DGIODG LQ 6HFWLRQ WKH /DU]RJXKRWKDUHSRLVHGIRUDQDVVDXOWDORQJWKHEDQNVRI WKHKROORZZD\EHWZHHQ3HQVWRZDQG'DOH

7+(13&6 7+(5()8*((6 $VLGHIURPWKHSHUVRQDOLWLHVRI+UpRZDOGD9LFODIDQG 9RODIGHVFULEHGHOVHZKHUHLQDQG WKH*0 VKRXOG XVH WKH 5HIXJHH)DUPHU VWDWV LQ IRU WKH UHPDLQGHURIWKHUHIXJHHSRSXODWLRQWKH\PXVWHVFRUW EDFNWR(VJDURWKOHYHOFKLOGUHQDQGWHHQVLQFOXGLQJ WKHILYHUHVFXHGLQDGYHQWXUH OHYHOIRONDQG *0·VGLVFUHWLRQ OHYHOIRON$OORIWKHUHIXJHHVDUH XVHGWRKDUGVKLSDQGZLOO ZLOOLQJO\REH\DQ\UHDVRQDEOH FRPPDQGV WKDW +UpRZDOGD VXSSRUWV ZLWKRXW PXFK JUXPEOLQJ 7KH IUHHLQJ RI PRVW RIWKHLU OLYHVWRFN WR IDFLOLWDWH TXLFNHU WUDYHO ZLOO JHQHUDWH JUHDW GLVPD\ EXW WKH\ZLOO HYHQWXDOO\ FRQFHGH WKH QHFHVVLW\ VKRXOG LW EH SURSRVHG 7KH\DUHQRWKRZHYHUH[SHULHQFHGDWILJKWLQJ OHJHQGDU\PRQVWHUVOLNH*REOLQVDQGZLWKRXWJRRGOHDG HUVKLSWKH\DUHOLDEOHWRSDQLFDQGDFW IRROLVKO\LQ VXFK VLWXDWLRQV 7+(/$5=2*8+27+ 7KH/DU]RJXKRWKIRUFHVHQWWRDPEXVKWKHUHIXJHHVLV DVPHQWLRQHGFRPSRVHGRIEOXHWDWWRRHGDQGZRDG VWUHDNHG*REOLQVDQGHLJKW'LUH:ROYHV7KHFRPPDQG LQJ HLJKW2UF OXUJ LV PRXQWHGXSRQ WKHVH:ROYHV DQG LQFOXGHVDFFRUGLQJWR WKHVWDWLVWLFVJLYHQ LQ RQH 8UXN&RPPDQGHUDQGVHYHQ:ROIULGHU:DUULRUV )RXU RWKHUOXUJVPDNHXSWKHUHPDLQGHURIWKHUDLGLQJSDUW\ HDFKRIWKHVHFRQWDLQVRQH)RRW&RPPDQGHUWZRH[SH ULHQFHG :DUULRUV OHYHO DQG ILYH UHJXODU :DUULRUV OHYHO 6L[6FRXWVDFWDVWUDFNHUVDQGJDWKHUUHFRQQDLV VDQFHLQIRUPDWLRQ LQJURXSVRIWZR 7KH*REOLQKRVWFDPHTXLFNO\WRWKHFURVVURDGVZLWK WKH*UH\0RXQWDLQ5RDGZHVWRI3HQVWRZH[SHFWLQJDQ HDV\H[SHGLWLRQRIEORRGDQGSOXQGHUVRE\WKHWLPHWKH\ UHDFKWKHURSHEULGJHWKHIUDJLOHPRUDOHRIWKHIRUFHZLOO EH IODJJLQJ

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

7KUHH 5HIXJHH 0DHGZHQ 1R ´&URIWV )DUPVµ 6LPLODUWR3HQVWRZ 5XQQLQJ 5LYHU 7KH +LOO )RRWSDWK HQGV LQ D QDUURZ PHDGRZ ILOOHG ZLWK KLJK JUDVVHV DQG DOLYH ZLWK JUHHQZLQJHGFURZV DORQJVLGHWKHVZLIW ZLGH DQGGHHS 5LYHU5XQQLQJ

7+(%5,'*(

K_\I\^`fe

7+(5(*,21 3HQVWRZ +UpRZDOGD·V KRPHVWHDG 7UDLO7KHJUDVV\WUDFN³FRQQHFWLQJ3HQVWRZWKHFURVV URDGVZLWKWKH*UH\0RXQWDLQ5RDGZKHUHWKH/DU]RJXKRWK ZDLWLQDPEXVK PLOHVWRWKHZHVWDQG'DOH³DYHUDJHV ZLGH +HDY\XQGHUJURZWK LV FRPPRQ DORQJ ERWK VLGHVRIWKHWUDFNZKHUHJHQWO\VORSLQJEDQNVLQFUHDVHWKH VKDGRZVRQWKHWUDLOPLOHVZHVWRI3HQVWRZLVZKHUHWKH 3&VZLOOHQFRXQWHUWKHLUILUVW/DU]RJXKRWK*REOLQVFRXWV PDUNHG´$µRQWKHPDSVHH /DU]RJXKRWK&DPS+HUHWKH2UFLVKUDLGLQJIRUFHKDV VHWXSWHPSRUDU\FDPSDQGSUHSDUHGDQDPEXVKEHQHDWK WKHVKDGRZVRIDQRDNDQGKLFNRU\ZRRG *UH\ 0RXQWDLQ 5RDG 6LPLODU WR WKH 7UDLO DERYHWKLVJUDVV\WUDFNOHDGVQRUWKDQGHYHQWXDOO\QRUWK ZHVW WR WKH (DVW 5RDG 1R ´$HVGZHJµ 6 ´0HQ 5KXQHQµ LQWKHVRXWKHUQVKDGRZRIWKH*UH\0RXQ WDLQV +LOO)RRWSDWK7KHJUDVVFRYHUHGSDWKOLQNLQJ3HQVWRZ ZLWKWKHWKUHHRWKHUUHIXJHHPDHGZHQGXNDVWRWKHVRXWK LV QRW QHDUO\ DV EURDG DV WKH HDVWZHVW WUDLO OLQNLQJ 3HQVWRZDQG'DOH5XQQLQJPLOHVEHIRUHGHVFHQGLQJ LQWR D QDUURZ PHDGRZ DORQJ WKH HDVWHUQ EDQN RIWKH XSSHU5LYHU5XQQLQJLWDYHUDJHVRQO\ ZLGHEHWZHHQ 3HQVWRZDQGWKHPRVWVRXWKHUO\PDHGZH%H\RQGWKDWLWV ZLGWKLVMXVW ³LPSDVVDEOHWRZDLQVDQGODUJHKHUGV RIOLYHVWRFN

%HWZHHQ PLOHV VRXWK RI 3HQVWRZ DORQJ WKH SHULORXVPLOHWUDFNOLQNLQJWKHUHIXJHH KRPHVWHDG WR WKH5LYHU5XQQLQJDERYHWKH/RQJ/DNHWKHUHH[LVWVDQ LGHDOSODFHIRUWKH3&VDQGWKHUHIXJHHVWRPDNHDVWDQG DJDLQVW WKH SXUVXLQJ EOXHWDWWRRHG *REOLQV 7KH H[DFW ORFDWLRQRIWKHURSHEULGJH1R´5DSEUXFNDµ LVGHOLE HUDWHO\ OHIW YDJXH LQ RUGHU WR DOORZ WKH JDPHPDVWHU WR RUFKHVWUDWHWKHDGYHQWXUHVRWKDWWKH IOHHLQJDGYHQWXUHUV DQG UHIXJHHV UHDFK WKH VSDQ MXVW DV WKH\ DUH DERXW WR FROODSVHIURP H[KDXVWLRQ 7KH UDYLQH LV WKH UHVXOW RIWKH JODFLDO DFWLYLW\ ZKLFK FDUYHGWKHXSSHU1DQ&HOGXLQDQGWKH1DQ$QQHQDHRQV DJRDVZHOODVPRUHUHFHQWHURVLRQE\DQDPHOHVVTXLFN PRYLQJVWUHDPDWWKHEDVHRIWKHJXOO\ZKLFKHPSWLHVLQWR WKHXSSHU5LYHU5XQQLQJ 7KHFOLIIVRIWKH GHHSULIW DUH ZLFNHGO\VWHHSGRZQZDUGVORSLQJVKDOH³QRWLQWKH OHDVWVPRRWKGHVSLWHWKHVWUHDP·VSDVVDJH7KHQRUWKHUQ VLGHLVUHODWLYHO\EDUHRIIROLDJHDURXQGWKHEULGJHIRUDERXW EDFNIURPWKHFOLIIHGJHEXWLQFRQWUDVWWKHVRXWKHUQ FOLIILVEULVWOLQJZLWKWKLFNXQGHUJURZWK³UKRGRGHQGURQ PRXQWDLQODXUHOPLOLWKUDJ1R´+RQH\VXFNOHµ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³UROO HYHU\ URXQGDSSOLFDEOH $GGLWLRQDOO\ DERXW RXWIURP WKH QRUWK FOLIILV D ZHDNURWWLQJSODQNWKHWKERDUGPDUNHG´$µRQWKH PDS ZKLFK ZLOO FROODSVH ZKHQ RUPRUH SRXQGV RI ZHLJKW LV SODFHG XSRQ LW D /LJKW 3HUFHSWLRQ PDQHXYHUWRDVFHUWDLQWKLV DQGUHVXOWLQD0HGLXP 8QEDODQFLQJDWWDFNWRWKHXQOXFN\LQGLYLGXDO $VLPLODUVLWXDWLRQZLOORFFXUZKHQDFHQWUDOO\ORFDWHG ERDUG DSSUR[LPDWHO\ IURP HDFK VLGH RIWKH UDYLQH DQGWKHWKERDUGIURPWKHQRUWKFOLIIPDUNHG´%µRQ WKH PDS KDV RU PRUH SRXQGV SODFHG XSRQ LW $ 0HGLXP 3HUFHSWLRQ PDQHXYHU LVQHHGHG WR GHWHU PLQHWKLV ,QGLYLGXDOVZKRSODFHPRUHWKDQSRXQGVRQDQ\RI WKHQDUURZHVWERDUGVDOOPDUNHG´&µ RQWKHPDS ZLOO DOVRVXIIHUD0HGLXP8QEDODQFLQJDWWDFNDOOUHTXLUH 0HGLXP UROOV WR SHUFHLYH WKHLU ZHDNQHVV DV WKH ERDUGVQDSV

2EVHUYLQJWKDWWKHERDUG RXWIURP WKHVRXWKHUQ FOLIIWKHWKERDUGIURPWKDWGLUHFWLRQPDUNHG´'µRQ WKHPDS LVURWWHQDQGXQVDIHUHTXLUHVD9HU\+DUG 3HUFHSWLRQPDQHXYHUWRGHWHUPLQH7KHERDUGZLOOEXFNOH XQGHURUPRUHSRXQGVRISUHVVXUHFDXVLQJWKHXQZDU\ WUHDGHUWRVXIIHUD 0HGLXP 8QEDODQFLQJDWWDFN $Q\RQHIDOOLQJIURPWKHFHQWUDOSRUWLRQRIWKHEULGJH LQWRWKHUDYLQHZLOOVXIIHUD/&UDWWDFNDQGODQG

EHORZLQWKHVKDOORZVWUHDP7KRVHXQOXFN\HQRXJKWRIDOO IURP WKHFOLIIWRSRUWKH HQGSRUWLRQVRIWKHEULGJHPD\ DOVRFKDQFH VXIIHUPDDWWDFNVRQWKHZD\ GRZQ 8QEDODQFLQJ DWWDFNV DUH WUHDWHG DV QRUPDO 0HGLXP DWWDFNVSHUWKHUHOHYDQWD

7+(7$6. 67$57,1*7+(3/$<(56 +DYLQJ UHWXUQHG WR +UpRZDOGD·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·UHWXUQ

$,'6 7KHDGYHQWXUHUVZRXOGGREHVWWRXWLOL]HWKHOHDGHUVKLS VNLOOV RI +UpRZDOGD DQG LVVXH WKHLU GLUHFWLRQV WR WKH UHIXJHHV YLDKHU ,IWKH 3&V DUHIHDUIXO DQG GLVRUJDQL]HG ZKHQ WKH\ GLUHFW WKH UHIXJHHV WKH ODWWHU ZLOO EHFRPH KHVLWDQWDQGSRVVLEO\HYHQSDQLFN\ +UpRZDOGDRUD 3&

K_\9i`[^\

>fYc`ejZflk i\jk`e^

ZLWKJRRGOHDGHUVKLSDELOLW\ZLOOEHDEOHWRTXDVKWKLVDQG WKHLQIOXHQFHRIWKH3&VZLOOEHJUHDWO\KHLJKWHQHGLIWKH\ KDYH VXFFHVVIXOO\ UHWXUQHG IURP WKH ODVW DGYHQWXUH LQ 6HFWLRQDQG9LFODIKDVWLPHWRUHODWHWKHWDOH 9RODI DQG 9LFODIFRXOG DOVR EH XVHIXO WR WKH 3&V DV VFRXWV DOWKRXJK WKDW MRE ZRXOG SUREDEO\ EH GRQH HYHQ PRUH HIIHFWLYHO\E\DSOD\HUFKDUDFWHU 6SHHG DQG ,QWHUURJDWLRQVNLOOVZLOO SURYHXVHIXORQFH WKH3&VHQFRXQWHUWKHLUILUVWGXRRI/DU]RJXKRWK*REOLQ VFRXWV³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

QRWXVHGWRILJKWLQJ*REOLQV 7KHWULFNLVWRPRWLYDWHWKH UHIXJHHV WR PRYH VZLIWO\ WR GLVFDUG DOO EXW WKH PRVW QHFHVVDU\ LWHPV LQFOXGLQJ VORZ IDUP DQLPDOV DQG WR GHIHQGWKHPVHOYHVHIIHFWLYHO\GXULQJHQFRXQWHUVZLWK2UF VFRXWV 7KH *0 VKRXOG JLYH 3&V ZKR FRPH XS ZLWK LPDJLQDWLYHVROXWLRQVWRYDULRXVGLIILFXOWLHVWKHEHQHILWRI WKHGRXEWDIWHUDOOGHVSLWHWKHLULQH[SHULHQFHZLWK2UFV WKHUHIXJHHV DUHD KDUG\ORWXVHGWRVWUXJJOLQJIRUWKHLU VXUYLYDO

2%67$&/(6 2EVWDFOHV LQ WKLV DGYHQWXUH DUH UHODWLYHO\VWUDLJKWIRU ZDUG WKH /DU]RJXKRWK*REOLQV WKH VSHHG DQGFRPEDW VXSHULRULW\RIWKRVH*REOLQVDQGWKHVORZPRYHPHQWDQG SRWHQWLDO IRUSDQLFDPRQJVWXQPRWLYDWHG UHIXJHHV

5(:$5'6 ,IWKH3&VUHWXUQWR(VJDURWKZLWKWKHPDMRULW\RIWKH UHIXJHHVWKH\ZLOO EHIHWHG DWDWRZQFHOHEUDWLRQ LQ WKH 7KUi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pRZDOGD WKH\PD\HYHQEH UXQ RXW RIWRZQ DIWHU GDUN E\ D PRE RI KRRGHG DQG PDVNHG ILJXUHV

(1&2817(56 *2%/,16&2876 7KHILUVWHQFRXQWHUEHWZHHQ WKH 3&OHGUHIXJHHVDQG WKH/DU]RJXKRWK*REOLQVZLOORFFXUMXVWPLOHVWR KRXUV DIWHUWKH 3&VDQGWKHLUHQWRXUDJH KDYHGHSDUWHG ZHVWIURP3HQVWRZ$SDLURI2UFVFRXWVUHVSRQVLEOHIRU ZDWFKLQJWKHHDVWWUDFNIRUWKHDSSURDFKLQJUHIXJHHVKDYH JURZQFDUHOHVV$VWKH3&·VIRUZDUGORRNRXWLIWKH\KDYH RQH RUWKHOHDGLQJPHPEHUVRIWKH3&V·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² EDFN IDVWDVOHHS2QFHKH UHDOL]HVKLVSHULOWKH2UFZLOOVKRXWWRDOHUWKLVFRPSDQLRQ DQGDWWHPSWWRIOHH

7KH*0VKRXOGFRQVLGHUVHYHUDOWKLQJVLQWKLVHQFRXQ WHU IRUWKH UHPDLQGHURIWKH DGYHQWXUH KLQJHV XSRQ LW )LUVWDQGOHVVLPSRUWDQWWKHEOXHWDWWRRVRIWKH*REOLQV VKRXOG UHPLQG 3&VRIWKH WUHDFKHURXV 8QKLU :DGIODG 6HFRQGRQHRIWKH2UFVFRXWVVKRXOGHVFDSHIOHHLQJEDFN WKHPLOHVRUVRWRKLVVXSHULRUVZKRHDJHUIRUDILJKW DQG EHOLHYLQJWKHSRVVLELOLW\RIVXUSULVHWR EH ORVW ZLOO SURPSWO\ FDOO D PXVWHU DQG SUHVV HDVWZDUGV DIWHU WKH UHIXJHHV7KLUGWKHRWKHU2UFVFRXWVKRXOGEHWDNHQDOLYH ³VHULRXVO\ZRXQGHGSHUKDSVEXWDOLYHQHYHUWKHOHVV ,I WKH 3&V GR QRW WKLQN WR TXHVWLRQ WKH FDSWLYH +UpRZDOGD ZLOO VXJJHVWLW DQG DIWHUDOLWWOHFRD[LQJWKH 2UFZLOOWDONUHYHDOLQJWKHORFDWLRQRIDVL]DEOHIRUFHRIKLV FRPSDWULRWVVRPHPRXQWHGXSRQ:ROYHVDWWKHFURVV URDGVZLWKWKH*UH\0RXQWDLQ5RDGVRPHPLOHVZHVW ,IWKH 3&V GLG QRW DFWXDOO\ VHH WKH RWKHU*REOLQ VFRXW HVFDSLQJ LWVKRXOG EHFRPH FOHDUDIWHULQYHVWLJDWLQJWKH FDPS RII WKH VLGH RI WKH URDG DQG TXHVWLRQLQJ WKHLU SULVRQHUWKDWWKHUHZHUHWZR2UFVKHUHGRLQJUHFRQQDLV VDQFHDQGRQO\RQHRIWKHPKDVEHHQFDSWXUHG 7ZR PRUH SDLUV RIVFRXWV DOVR RSHUDWH DKHDG RIWKH PDLQ *REOLQ IRUFH DV WKH *REOLQV JDLQ RQ WKH SOD\HU FKDUDFWHUVDQGWKHUHIXJHHVWKHUHDUJXDUGRIWKHUHIXJHHV LVOLNHO\WRHQFRXQWHUWKHVHIRUZDUGREVHUYHUV

7+(&+$6( 8SRQ KHDULQJ RI WKH *REOLQ IRUFH EORFNLQJ WKHLU SDVVDJH WR WKH ZHVW WKH 3&V VKRXOG UHDOL]H WKH\ PXVW WUDYHODGLIIHUHQWURXWH+Up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

'D\

3&VDQG 5HIXJHHV 7UDYHOZHVW IRUPLHQFRXQWHU VFRXWVGHFLGH WREDFNWUDFN DQGKHDGVRXWK RUPL

'D\ 1LJKW 1LJKW 1LJKW

PL PL PLRUUHVW 5HVWRUPL

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·IRUFHLVOLPLWHGLQWUDYHOEHFDXVHWKHEXON RIWKH VPDOO DUP\ LV RQ IRRW MXVW VHYHQ PLOHV PD\ EH FRYHUHGLQDKRXUGD\WLPHLQFUHPHQWGXHWRWKHVXQ·V LOOHIIHFWVXSRQWKH2UFV EXW PLOHVSHUKRXUWHUP PD\ EH WUDYHOHG DIWHU GDUN %HFDXVH RI WKHLU VXSHULRU HQGXUDQFHWKH*REOLQVGRQRWUHTXLUHUHVWDQ\WLPHGXULQJ WKHKRXUFKDVH

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

*REOLQV 6FRXWV HQFRXQWHU UHIXJHHV RQHIOHHVEDFN PLWRZDUQ PDLQKRVW 6FRXWFRQWLQXHV EDFNWRZDUQKRVW PDLQKRVWPXVWHUV WRSXUVXH PL PL PL 8SWRPL

1HW 'LIIHUHQFHDW (QG RI7HUP PL

RUPL

RUPL RUPL RUPL 7KH*REOLQVFDWFKXS

>fYc`ejZifjj`e^X jdXccifg\Yi`[^\

UDYLQH3&VPD\GHYLVHDSODQWRDPEXVKWKH*REOLQIRUFH DVWKHODWWHUFURVV WKHVSDQ7KH8UXNFRPPDQGHUZLOO UHFRJQL]HWKHSRVVLELOLW\RIDWUDSDQGEHZLVHHQRXJKWR VHQG KLV IRRWVROGLHUVDFURVVILUVW 6LQFHWKHEULGJHZLOORQO\VXSSRUWVRPXFKZHLJKWWKH *REOLQVZLOOEHZHOOVSDFHGDVWKH\WURRSDFURVVSURYLGLQJ DZRQGHUIXORSSRUWXQLW\WRHOLPLQDWHWKHPRQHE\RQHDV VRRQ DVWKH\UHDFK WKHFDPRXIODJLQJEUXVKERUGHULQJWKH VRXWKHUQFOLII,IHQRXJKDUHVODLQLQWKLVPDQQHUEHIRUHWKH REYLRXVWDFWLFRIFXWWLQJWKHURSHVRIWKHEULGJHZKLOHVRPH *REOLQVDUFFURVVLQJLVFDUULHGRXWWKH3&VDQGWKHUHIXJHHV FRXOGPDNHTXLWHDGHQWLQWKHLUSXUVXHUV·SRSXODWLRQ :LWQHVVLQJODUJHQXPEHUVRIWKHLUFRPUDGHVSOXQJHWR D KRUULEOH GHDWK LV QRW HVSHFLDOO\ JRRG IRU WKH 2UFV· PRUDOHSDUWLFXODUO\ZKHQ WKH*REOLQVZHUHDQWLFLSDWLQJ DQHDV\PDVVDFUH&RXSOHGZLWKWKHFRQVSLFXRXVGHDWKVRI RWKHUVHJWKURZLQJWKHFRUSVHVRI*REOLQVZKRFURVVHG WKHUDYLQHDQGZHUHGLVSDWFKHGZLWKDFRXSGHJUDFHRYHU WKHFOLIILQIXOOYLHZRIWKHPDLQ*REOLQKRVW DQGRWKHU PRUDOHWKUHDWHQLQJDFWLRQVHJ RSHQ GLVSOD\VRIS\UR WHFKQLFPDJLFRUJDQL]HGPLVVLOHILUHYROOH\VUDLQLQJGRZQ RQWKHXQSURWHFWHGQRUWKVLGHRIWKHUDYLQHHWF VXFKD VWUDWDJHPFRXOGFRQYLQFHWKH*REOLQVVLPSO\WRIOHHWKHQ DQGWKHUHDQGQRWHYHQDWWHPSWWRVNLUWWKHUDYLQHDQG FRQWLQXHWKHLUSXUVXLW

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³UHTXLULQJ D +DUG ULGLQJ PDQHXYHU WKLV

VWULNHIRUFHPLJKWDWWHPSWWRDWWDFNDQGGHOD\WKH3&VDQG WKHUHIXJHHVXQWLOWKHEXONRIWKH/DU]RJXKRWKIRUFHFDQ FDWFKXS7KHZROIULGLQJ8UXNFRPPDQGHURIWKHIRUFH LVZHOODZDUHWKDWKHZRXOGSUREDEO\SD\ZLWKKLVOLIHZHUH KHWRUHWXUQWRKLVFKLHIWDLQIURPVXFKDUDLGZLWKRXWHYHQ DVPDOODPRXQWRIERRW\$QDWWDFNRIVXFKVL]HZRXOGEH PXFKPRUHHDVLO\UHSHOOHGE\WKH3&VDQGWKHUHIXJHHVEXW GLIILFXOW QRQHWKHOHVV

+$,/,1*6+,3683217+( 5,9(55811,1* $IWHUWKHORQJDQGKDUURZLQJWUHNDFURVVFRXQWU\WKH JDPHPDVWHUVKRXOG DOORZ WKH IOHHLQJ UHIXJHHV DQG WKHLU SOD\HUFKDUDFWHUHVFRUWVDVWURNHRIOXFNZKHQWKH\UHDFK WKHHDVWHUQEDQNRIWKHXSSHU5LYHU5XQQLQJ5DWKHUWKDQ KDYLQJWKHPGURZQWU\LQJWRFURVVWKHHVWXDU\DOORZWKHP WRKDSSHQXSRQDFQHDUUDYHVVHOZKLFKFRXOGUHVFXHWKHP LQWLPHDQGIHUU\WKHPDFURVVWKHEURDGULYHU7KHYHVVHO FRXOG HYHQ EH )UHDPXQG·V VKLS 6FUHHYDU FDSWDLQHG E\ %pRUWQRY7KHVL]HRIWKHFUDIWLVQRWUHDOO\DPSOHHQRXJK WRDFFRPPRGDWHDOORIWKHUHIXJHHVEXWWKRVHFKDUDFWHUV DQG UHIXJHHV PRVWLQ QHHGRIILUVWDLGFRXOG EHNHSWRQ ERDUG DQG IHUULHG DOO WKHZD\WR(VJDURWK PRUHTXLFNO\ WKDQ WKRVH IRUFHG WR FRQWLQXH RQ IRRW VRXWK DORQJ WKH /RQHO\0RXQWDLQ5RDG,QDQ\HYHQWWKH/DU]RJXKRWK *REOLQVZLOOQRWSXUVXHWKHUHIXJHHVDFURVVWKH&HOGXLQ

*$0(0$67(5127(6 7KH NH\ WR WKLV DGYHQWXUH LV JRRG RUJDQL]DWLRQ DQG SODQQLQJDKHDG$SOD\HUFKDUDFWHUJURXSZLOOQRWEHDEOH WREOXQGHUWKURXJKWKLVXVLQJRQO\WKHLUFRPEDWVNLOOVIRU WKH\DUHRXWQXPEHUHGDQGKDYHWKHOLYHVRIWKHUHIXJHHVWR FRQVLGHU)RUDSDUWLFXODUO\PDUWLDOJURXSWKH*0FRXOG FKRRVHWRKDYHIRUZDUGVWULNHIRUFHVRIYDU\LQJVL]HVEUHDN RIIIURPWKH IURQWRIWKHSXUVXLQJ*REOLQKRVWWRVSHHG DKHDG DQG VNLUPLVK ZLWK WKH UHDUJXDUG RIWKH UHIXJHH FDUDYDQGXULQJWKHKRXUVRUVREHIRUHWKHURSHEULGJHLV UHDFKHG

17.0 THE LEGENDARY SÉAHMATHA The ethnic folktales of the Lake-folk are peppered with references to the Séahmatha (No. “Lake Serpent”), a huge legendary monster which is said to inhabit the depths of the Long Lake. Plot outlines of two of the most popular stories run roughly as follows: In ages past, the Visknakyn priest Baeda (No. “Impeller”) is said to have overcome the Serpent after it had attacked a swimmer by brandishing a torch, commanding the beast to release the unfortunate and banishing it to the bottom of the lake. In memory of this, a carnivalesque dance, in which a colorful cloth, hide, and withy “Séahmatha” is paraded through the streets of Esgaroth before being doused with oil and set alight in the center of the northern Woesal, still highlights the lesser feast day held each year on the last Séahsdeg in the math of Wintring (see Section 4.7 for a description of the Northron calendar). Before his untimely drowning, the great fifteenth century warrior Osséah (No. “Lake Hero”) reputedly vanquished the Worm during an assault by the latter upon Esgaroth by dealing the creature a single mighty blow with the flat of his magical sword, Naegling (No. “Silver Nail”). Nowadays, the victor in the bareknuckle fighting

competition held at the Witehuil during Esgaroth’s Lithe fair each summer is traditionally granted the title of “Osling” (No. “Descendant of Osséah”) in recognition of his achievement and in remembrance of that ancient hero.

17.1 AID TO THE VISCERAS Recently, one of the thurruc vessels of the Fisherfolk of Esgaroth capsized, and all five of its occupants drowned. People on other boats in the vicinity claimed to have seen the head of a huge Worm, the Séahmatha, rise out of the surface of the lake and attack the craft. Other nonwitnesses were nervous about the fact that the boat was completely smashed, but still skeptical; after all, wasn’t it true that the fabled Osséah had defeated the beast nearly two centuries ago? Why would the monster return now? But their worst fears were realized several days later, when the enormous Serpent rose out of the water and attacked another boat in full view of nearly twenty people. One man disappeared during that assault, and, during an even more recent third attack, another fisherman was dragged screaming to his watery doom, clamped in the huge maw of the vicious monster. Besides its already devastating toll in the Visceras community, the aggressive presence of the Séahmatha poses a continuing danger to the fish trade of Lake-town. Further, as word gets out, the Séahmatha’s potential to disrupt trade to Esgaroth during the critical post-Plague period of rebuilding could be crippling to the settlement. Now Hygegrim, the patriarch and Kryn of the Visceras, aided by Beadarof, Esgaroth’s Wendriht, seeks heroes willing to combat and slay the Séahmatha before it takes any more lives. In truth, what has happened, is that after a long nap and gestation period of several hundred years, the Séahmatha Water-drake inhabiting the cliffs along the northeastern edge of the Long Lake has spawned two young, which it now feels obliged to gather food for (in a manner normally quite alien to such a malevolent beast). Having discovered that fishing boats provide more meat than a school of char for a comparable amount of effort (and that Northrons are much less skilled at swimming than fish are), the Séahmatha has taken to its new food source like a “fish to water.” The two Séahmatha spawn are unable to venture out of their lair at present, but will probably do so within a week or two. They grow quickly and require an ever-increasing amount of food. Lake-town would not be able to coexist with three active Waterdrakes without great calamity, so the need to dispense with the beasts while two of them are still relatively weak is of vital importance.

121

The Water-drake

7+(13&6

8kkXZbf]k_\ JX_dXk_X

+\JHJULP %HDGDURI DQG %RJDWXQJ WKH Z\UGZRPDQ DUHGHWDLOHGLQ6HFWLRQ 7+(9,6&(5$6 $VXSHUVWLWLRXVDQGFODQQLVKJURXSWKH)LVKHUIRONZKR IUHTXHQWO\ ILVK QHDU WKH KLJK VKDOH FOLIIV WKDW IRUP WKH HDVWHUQVKRUHOLQHRIWKH/RQJ/DNHQRUWKHDVWRI(VJDURWK JURZLQFUHDVLQJO\IHDUIXODVWKHDWWDFNVIURPWKH6pDKPDWKD FRQWLQXH 0DQ\KDYHRSWHGWRSO\WKHLUFUDIWHOVHZKHUH GHVSLWHWKHIDFWWKDWWKHDUHDZKHUHWKHPRQVWHUKDVEHHQ VLJKWHG LV RQH RI WKH EHVW ILVKLQJ DUHDV 7KRVH ILYH WKXUUXFDQWKDWFRQWLQXHWRILVKWKHZDWHUVLQWKHGDQJHU ]RQHDUHOLDEOHWREHRIDLGRQO\LIWKH6pDKPDWKDDWWDFNV RQHRIWKHLURZQ,IWKHEHDVWDWWDFNVWKHGULKWHQPHUQDF ZKLFKWKH3&VDUHDERDUG WKH9LVFHUDVZLOOVLPSO\IOHH

7+('5,+7(1 7KHGULKWHQPHPEHUVDUHDEOHZDUULRUDQGVDLORUVEXW WKHLU FRPEDW H[SHULHQFH FRQVLVWV PRVWO\ RIGULOOV DQG DSSUHKHQGLQJWKHRFFDVLRQDOGUXQNHQURZG\7KHLULQLWLDO ZLOOLQJQHVVWREDWWOHWKH6pDKPDWKDVWHPVSULPDULO\IURP WKH ROG VWRULHV RI2VVpDK WKH\ KDYH KHDUG RQFH WKH\ DFWXDOO\VHHWKHVL]HDQGIHURFLW\RIWKHEHDVWWKHLUVWUDWHJ\ ZLOOTXLFNO\FKDQJH,IWKH:RUPDWWDFNVDWKXUUXFWKH\ ZLOO DWWHPSWWRUHVFXHWKHFDSVL]HG)LVKHUIRONUHSHOOLQJ WKH :DWHUGUDNH RQO\ LI DEVROXWHO\ QHFHVVDU\ ,I WKH 6pDKPDWKDDWWDFNVWKHLURZQPHUQDFWKH\ZLOOIOHHURZ DZD\ DWWHPSWLQJVLPXOWDQHRXVO\WRUHSHODQ\DGGLWLRQDO

DWWDFNVDVEHVWWKH\FDQ7KHRULJLQDO LGHDRIWDNLQJWKH RIIHQVLYH³SXUVXLQJDQGVOD\LQJWKH6HUSHQW³ZLOO YDQ LVKOLNHODNHPLVWXQGHUDKRWVXQDIWHUWKHILUVWHQFRXQWHU ZLWKWKH'UDNH

7+(6e$+0$7+$$1',7663$:1 7KH6pDKPDWKDLVDQDQFLHQWDQGLPPHQVHO\SRZHUIXO :DWHUGUDNHWKDWKDVLQKDELWHGWKH/RQJ/DNHIRUPLOOHQ QLD(LJKW\IHHWORQJZLWKDJLUWKDYHUDJLQJMXVWIRXUIHHW LQGLDPHWHUWKH6HUSHQWKDVJOLVWHQLQJKDUGVFDOHVFRO RUHGDEORWFK\GDUNEOXHJUHHQDEOXHEODFNVSLQDOFUHVW WKDW VWDQGV XS ZKHQ WKH EHDVW·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

burst of speed (HBa) and wraps its long body around the victim (HGr). It can also employ its terrible jaws (HBi) and expel a powerful blast of water (treat as a water bolt). The Drake deals four times the normal concussion hit damage because of its great size. Due to the Worm’s fearsome appearance, it also causes all opponents to make a Resistance Roll against a level 5 Fear spell. Unlike most land Dragons, the Séahmatha possesses only animal intelligence, and although extremely belligerent and a voracious feeder, it is unable to reason or cast spells. The Séahmatha of the Long Lake awoke and gave birth to two offspring only very recently, after a hibernation/ gestation period of nearly two centuries. Some time before that, the beast had attacked and devoured its mate. Its two spawn are more lightly colored, smaller thirty-foot versions of itself; they will attack any potential food source on site (generally initiating such encounters with a Bite or Bash attack). At first, the spawn, being rather undeveloped, will remain in the cavern lair, but within a week or two of the first attack of the Séahmatha upon the Visceras of Esgaroth, they will be old enough to venture out into the open waters of the Long Lake. This bodes very badly for the Lake-folk of Esgaroth, since the spawn are incessantly hungry and much less cautious than their mother. They are liable to launch several aggressive and short attacks at a large number of Visceras ships rather than a single, prolonged, and concentrated attack upon one ship like their parent. Both the Séahmatha and her spawn share a dislike of the disorienting effect of a stunning blow, which is liable to cause them to flee. Further, all three fear fire, and the presence of open flame (possibly even a single torch in the case of a spawn who has been burned once and therefore recognizes the danger) may also cause them to retreat.

Wurm from the Séah will thee see this day.” This is designed to insure that PCs will return to fatten her purse every day until they encounter the Serpent.

17.3.2 LAIR OF THE SÉAHMATHA

A series of damp caverns, caused by millennia of seepage and Long Lake tides, meander through the limestone strata underlying portions of the shale cliffs that form the lake valley’s eastern scarp. Innumerable passageways and exits empty into the Long Lake underwater, but, aside from several inaccessible sinkholes, infrequent narrow crevices, and tiny hidden vents, the only access above the waterline to the complex of caves where the Séahmatha makes its home is some 85' up the cliff. This series of cave entrances is not readily visible from boats upon the lake’s surface (see 17.5.1 for a description of the blue pigeon flurry that will reveal the presence of the caverns). The shale bluffs are the eroded edge of a glacial syncline—the Long Lake valley, and the cliff face which now overhangs the lake’s surface is angled sharply downwards as a consequence. This makes scaling the scarp a series of Extremely Hard (-30) Climbing maneuvers because a climber must actually clamber out, around, and over several projections. A fall will result in the unfortunate suffering of 1-5 +20MBa attacks (bouncing off the cliff face on the way down) unless a successful maneuver is made by the character to push himself or herself away from the rock face (bonuses from Acrobatics, Adrenal Moves (landing), Climbing, or Diving skills would be applicable here). Fortunately the water below softens the final impact (a +1-43MCr, depending upon how far up a clumsy PC is at the time of the fall). Much easier is rappelling 45' down the bluff from the 130' summit above the cave entrance, requiring several Hard (+10) Climbing maneuvers, (using rope, of course). Once PCs arrive within about 20' above or below the 17.3 THE SETTING cavern entrances, the openings become clearly visible, detectable with a Routine (+30) Perception maneuver. 17.3.1 ON THE LONG LAKE Inside and beyond the low-ceilinged, fairly dry, shale Layouts for the large, high-prowed drihten mernac and the smaller thurrucan, the typical vessels of the Visceras, entry areas, the limestone chambers and passageways are cool and damp, but relatively roomy and lofty-roofed. are provided elsewhere, in Sections 12.6.2 and 12.6.3. If the PCs make daily trips on the Long Lake, they will Dripping stalactites and lumpy floors riddled with colnot encounter anything for 3-7 days, enough time for umns, stalagmites, small sinks, and rises make footing them to begin to doubt the authenticity of the Séahmatha’s perilous: for every 10 minutes (60 rounds) of exploration existence, to become very tired of getting up before dawn have the PCs make a Medium, +0 (or harder in certain (rare for adventurer types?), and to begin to smell like fish noted areas), maneuver roll to avoid losing their footing innards. The lake is quite deep in the area near the shale and suffering a +20 Martial Arts Sweeps & Throws rank bluffs, which are extremely steep along this stretch of the 1 attack. shore and rise 120-150' above the water’s surface. They The long, sloped, windy passages which meander for provide small shelves and crevices for hundreds of nesting 100-500' each and which connect the caverns depicted on blue pigeons. the map are particularly slick; in them the maneuver rolls If it doesn’t occur to the PCs, one of their companions for footing that must be made rise in difficulty to Very might suggest they pay a visit to old Bogatung the Hard (-20). There is an additional chance that a fall will wyrdwoman to determine how or when to encounter the send a PC careening pell-mell another 50' or so down the Séahmatha. Bogatung will be able to determine the length steep tube until he is able to stop a fall (treat as a +25SCr). of time before the adventurers will encounter the Water- These tubes were eroded ages ago by water draining from drake, but she refuses to reveal anything beyond “No the oak savanna east of the Long Lake (a fact which is

123

GLVFHUQLEOHWRDQH[SHULHQFHGVSHOXQNHUZLWKD0HGLXP 6WDWLF PDQHXYHU UROO ZLWK DSSOLFDEOH ERQXVHV WR 'ZDUYHVDQGWKRVHZLWKVNLOOLQ&DYLQJ 7KHSDVVDJHZD\V JHW VWHDGLO\GDPSHU DV WKH\GHVFHQG WR WKH OHYHO RIWKH VXUIDFHRIWKH /RQJ /DNHQHDUE\

CX`if]k_\ JX_dXk_X

+RQH\FRPE5RRVW7KUHHORZZLGHJDSVLQWKHVKDOH FOLIIIDFHSURYLGHDQHQWUDQFH LQWRWKH6pDKPDWKD·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pDKPDWKD·V*DOOHU\

7KH DFRXVWLFV RIWKH VKDIW FRQQHFWLQJ WKH WZR ORFDOHV DUH VXFK WKDW ORXG QRLVHV OLNH D :DWHUGUDNH EHOORZ LQWKHORZHUFDYHUQDUHIXQQHOHGXSLQWRWKLV FDYH DWVXFKDVXUSULVLQJO\ORXGYROXPHWKDWWKHIOLJKW\SLJHRQV ZKRUHVLGHKHUHEHFRPHIHDUIXODQGDEDQGRQWKHLUQHVWVHQ PDVVHWHPSRUDULO\RIFRXUVH 7KHUHLVDFKDQFHIRUHYHU\WHQPLQXWHVURXQGV WKH3&VVSHQGKHUHWKDWWKH\ZLOOKHDUDQRWKHU6p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

*UHDW 'HSUHVVLRQ 7KLV ODUJH FDYHUQ SRVVHVVLQJ D FHLOLQJ GULSSLQJ ZLWK VWDODFWLWHV VRPH RYHUKHDG LV GRPLQDWHGE\DQLPPHQVHVLQNKROH3DVVLQJWKURXJKWKH FKDPEHUUHTXLUHVD9HU\+DUG PRYLQJPDQHXYHUWR DYRLGVOLSSLQJWRZDUGVDQGSHUKDSVLQWR WKHVLQN7KDW LQFUHDVHV WR ([WUHPHO\ +DUG IRU FKDUDFWHUV ZKR KDYHDOUHDG\ORVWWKHLUEDODQFHLQWKH6OLSSHU\&KXWH DQGDUHSOXPPHWLQJGRZQWXQQHO(RQWKHLUEDFNVLGHV $IDOOLQWRWKHVLQNKROHUHVXOWVLQD WXPEOHWUHDWDV D 0&U LQWR D FROG XQGHUJURXQG SRRO 7KH SRRO FRQQHFWVWRDSRROEHQHDWKWKHVLQNVDWDQG

WKHSRROVDWWKH)XQJL%DVLQ DQGWKH6pDKPDWKD·V *DOOHU\ DQGWKH/RQJ/DNHLWVHOI7KH6p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·VURXWHKHUHVFUDZOHG XSRQLWLQEXUQWZRRG7KHPDSLVXQODEHOHG 6WDODFWLWH+DOO7KHURRIRIWKLVKDOO LVKXQJZLWK D QXPEHURIHQRUPRXVVWDODFWLWHV6RPHKDYHPHUJHGZLWK VWDODJPLWHV WR IRUP FROXPQV DQG RWKHUV UHDFK

GRZQIURPWKH FHLOLQJRYHUKHDG0DQHXYHULQJDPRQJVW WKHP UHTXLUHV D+DUG PDQHXYHUZLWK DSSOLFDEOH ERQXVHVGXHWRVL]H&DYLQJDQG&RQWRUWLRQVDELOLWLHV )DLOXUHPD\FKDQFH UHVXOWLQNQRFNLQJRQHRUPRUH RIWKHVPDOOHUVWDODFWLWHVORRVHUHVXOWLQJLQ0+R DWWDFNV DJDLQVW WKH RIIHQGHU $ QDUURZ VTXHH]H DW WKH VRXWKHUQ H[WHQW RIWKH KDOO LV RQO\ ZLGH DQG WDOO UHTXLULQJD/LJKW PDQHXYHUWRSDVVWKURXJKLW

+LGGHQ6LQNKROH $W WKH EDFN RID GDQN LQFOLQHG FKDPEHU D VPDOOHUVLQNKROH UHTXLULQJ D 0HGLXP PDQHXYHUWRDYRLGVOLSSLQJLQRSHQVRQWRDVKDIWZKLFK GURSV WRZDWHUDQGDVHULHVRIFRQQHFWLQJXQGHUZDWHU SDVVDJHV³DFFHVVLQJVLQNVDWDQGSRROVDW DQG DQG WKH /RQJ /DNH DERYH WKH ZDWHU·V VXUIDFH DQRWKHU KLJK WXQQHO PHDQGHUV VRXWK DQG HYHQWXDOO\ DIWHU PDQ\ PLOHV FRQQHFWV ZLWK D VHULHV RI FDYHUQVEHKLQGWKH/LQGDO)DOOV :DWHU\ *URWWR 7KLV YHU\ ZHW FKDPEHU LV EDUHO\ DERYHWKHOHYHORIWKH/RQJ/DNHDQGLVIORRGHGWRDGHSWK RIDERXW GXULQJKLJKWLGHDWZKLFKWLPHWKHH[WHQWRI WKHZDWHUFRQIRUPVWRWKHGRWWHGRXWOLQHLQGLFDWHGRQWKH PDS 7KHSODFHLVDOVRIRJJ\³OLPLWLQJYLVLRQWR DQG JLYLQJWKHJURWWRDQXQVHWWOLQJDXUD 7KH WHUULEOH DQG JURWHVTXH YLVDJH RID :DWHUGUDNH ORRPVXSRXWRIWKHKD]H LQWKHPLGGOHRIWKHSODFH ,W UHTXLUHVD+DUG 3HUFHSWLRQUROOIRUDJLWDWHG3&VWR GHWHUPLQHLPPHGLDWHO\WKDWWKLVLVQRWWKH6pDKPDWKDEXW PHUHO\WKHFDUYHGSURZRIDQDQFLHQWDQGGHFUHSLW1RUWKURQ /DNHVKLS 2QO\ WKH IURQW WZR WKLUGV RI WKH KHDYLO\ GDPDJHGFUDIWUHPDLQURWWLQJDQGOLPHGRYHU7KHYHVVHO LVDUHPQDQWRID6p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

CX`if]k_\ JX_dXk_X

CX`if]k_\ JX_dXk_X

1RLVH IURP D SDUW\ DWWDFNLQJ WKH VKLS SURZ PD\ EH KHDUGE\WKH6pDKPDWKDRULWVVSDZQLIDQ\DUHDZDNHDQG SUHVHQW DW RU 7KH\ ZLOO DOPRVW FHUWDLQO\ LQYHVWLJDWHWKHVSDZQYLDFDYHUQVDQGDQGWKH 6p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³WKH 6pDKPDWKD

$SRROLQWKHVRXWKHDVWUHJLRQFRQQHFWVZLWKWKHVLQNV DWDQGWKHSRRODWDQGWKH/RQJ/DNH 7KHHQWLUHDUHDGHOLQHDWHGE\WKHGRWWHGOLQHRQWKHPDS LVIORRGHGDWKLJKWLGHWRDGHSWKRIVRPH 6pDKPDWKD·V *DOOHU\ 7KLV YDVW FKDPEHU·V URRILV QHDUO\ RYHUKHDG DQG WKH DUHD·V VWDODFWLWHFRYHUHG FHLOLQJDQGZDOOVDUHVSRWWHGLQWHUPLWWHQWO\ZLWKSDWFKHV RIJORZLQJJUHHQIXQJLZKLFKKDVEHHQJQDZHGLQPDQ\ SODFHVVLQFHWKH6pDKPDWKDHQMR\VWKHQXPELQJVHQVDWLRQ WKHIXQJLFDXVHV :LVSVRIIRJOLPLWLQJYLVLRQWR GULIWXSRYHUWKHERQHOLWWHUHGIORRUIURPWKHSRROLQWKH ZHVWHUQFRUQHURIWKHJDOOHU\ZKLFKFRQQHFWVWRWKHVLQNV DW DQGWKHSRRO DW DQGWKH/RQJ /DNH $QDUURZVWULSRIFDYHDORQJVLGHWKHSRRO·VHGJH IORRGV GXULQJWKHKLJKWLGHVLQWKH/RQJ/DNHWRDGHSWKV RIVRPH IHHW 1HDUHUWKHDLVOHRIOLPHVWRQHFROXPQVLQWKHVRXWKZHVW HUQUHDFKRIWKHDUHDWKHSXQJHQWRGRURIWKH6pDKPDWKD LVZLWKD0HGLXP 3HUFHSWLRQPDQHXYHUQRWLFHDEO\ VWURQJHU%H\RQGWKHDLVOHDQRRNVHUYHVDVWKHQHVWRIWKH 6pDKPDWKD DQG LWV VSDZQ 7KHUH WKH PXGG\JURXQG LV FRYHUHG ZLWK URWWLQJODNH YHJHWDWLRQ DQG EURNHQ ERQHV DQGDVPDOOHUQLFKHDWWKHEDFNRIWKHQHVWFUDPPHGZLWK URWWLQJDOJDHUHHGVDQGPXGFRQWDLQVWKHUHPDLQVRIWZR KXJH OHDWKHU\HJJV9DOXDEOHV LQ YDULRXV WDUQLVKHG DQG GHFD\LQJ VWDWHV OLH VFDWWHUHG DURXQG WKH QHVW LQ VHYHUDO SLOHV $ODUJHDVVRUWPHQWRIPRVWO\UXVWHGZHDSRQV DUPRUDQGVRPHPLOGHZHGOHDWKHUHTXLSPHQW VRPHRILWVWLOOZRUQE\LWVVNHOHWDORZQHUV $IWHUFOHDQLQJWKH PRWKHURISHDUO KLOW FURVVSLHFH DQGEURNHQEODGHRI2VVpDK·VKLJKVWHHO EURDGVZRUG1DHJOLQJ1R´6LOYHU1DLOµ LWZLOO VHUYHDVDPDJLFDOEODGH,WLVPDGHZLWKD EODFNSHDUOSRPPHOWKDWDOORZVWKHFDVWLQJRI ERWK 6WXQQLQJDWWZLFHWKHZLHOGHU·VOHYHO DQG 7UXH$XUDDWWKHOHYHORIWKHZLHOGHU WZLFHSHU GD\HDFK7KHEODGHLVIDPRXVDQGPD\EH UHIRUJHGE\DTXDOLW\ZHDSRQVPLWKLQWRDPDJLF ZHDSRQ =XQJDWYHUDQVHH FRQWDLQLQJDGHOLFDWHJROG FKDLQZLWKKDQJLQJDPHWK\VWJDUQHWDQGPRWKHU RISHDUOWHDUGURSFDERFKRQVPHDQWWREHZRUQ OLNHDFLUFOHWVS EDWWHUHGYHUGHJULVFRYHUHGEURQ]HFKHVWV XQORFNHGRQHLVXSULJKWEXWWZRKDYHEHHQ RYHUWXUQHGDQGWKHLUFRQWHQWVVSLOORXWRYHUWKH PXGIORRU FRQWDLQLQJVRPHVSZRUWKRI FRLQDJHYDU\LQJSURYHQDQFHVDOOROG

*HPVDQGMHZHOU\DQGFRLQVVFDWWHUHGDERXWWKH FDYHUQIORRUDERXW JSVSFSLS JSRIJHPVJDUQHWDPHWK\VWPRWKHURISHDUO HPHUDOGUXE\HWF DQGMHZHOU\DUPULQJV EUDFHOHWVDQNOHWVQHFNWRUTXHVSHFWRUDOVEHDG QHFNODFHVEURRFKHVFORDNSLQVVKRXOGHUFODVSV EHOWEXFNOHVULQJVHDUULQJVQRVHULQJVHWFZLWKD SUHGRPLQDQFHRI1RUWKURQ QLHOORLQODLG ILOLJUHHG PHWDODQGRUFORLVRQQpLWHPVVHWZLWKHQDPHO FRORUHGJODVVDQGJHPVWRQHV 5RXJKO\VSZRUWKRIRWKHUFRVWO\LWHPV JROGULPPHGGULQNLQJKRUQVJLOGHGEURQ]H EULGOHILWWLQJVFKDVHGEURQ]HKDQJLQJERZOV PLOOHILRULJODVVURGVEURQ]HDQGVLOYHUKDQG PLUURUVOLQNHGULQJFKDLQVVLOYHUQHHGOHVHWF 6ZDQIODKXWD VHH $VVHQSUpRQZUDSSHGLQDPRVWO\URWWHGVLON NHUFKLHIVHH

$,'6 6NLOOLQ6ZLPPLQJ&OLPELQJ&DYLQJVKLSERDUGH[SH ULHQFH DQG RIFRXUVHJUHDW PDVWHU\RIDUPVVKRXOG DOO SURYHXVHIXO7KLVDGYHQWXUHLVVXLWDEOHIRUPLGWRKLJK OHYHO SOD\HUFKDUDFWHUV )DPLOLDULW\ ZLWK WKH IRONWDOHV RI %DHGDRU2VVpDKPLJKWSURYLGHKLQWVWRWKH3&VDERXWWKH 6pDKPDWKD·V IHDU RIILUH DQG XQXVXDO VXVFHSWLELOLW\ WR VWXQQLQJ EORZV )XUWKHU WKH QDWXUH RIWKH OLPHVWRQH IRUPDWLRQV PLJKWDLGDGYHQWXUHUVZKROXUH WKH 6pDKPDWKD WKHUH IRU D EDWWOH 7KH EHDVW QRUPDOO\ DYRLGVWKHFDYHUQDQGPRYHPHQWLQWKHSODFHE\WKHDGXOW :RUP ZLWKRXW XSVHWWLQJ WKH KDQJLQJ VWDODFWLWHV DQG VXIIHULQJ0+RDWWDFNV LVDQ([WUHPHO\+DUG PDQHXYHUWKHGLIILFXOW\LV9HU\+DUG IRUWKH 6pDKPDWKD·VVSDZQ

2%67$&/(6 &OXPV\FKDUDFWHUVPD\KDYHWURXEOHZLWKWKHLUIRRWLQJ LQVLGH WKH FDYHUQV ZKHUH WKH 6pDKPDWKDPDNHV LWV ODLU +HDY\PHWDODUPRUZLOOSURYHDGLVWLQFWKLQGUDQFHWR3&V 7+(7$6. ERWK RQ WKH ODNH DQG LQ UHJLRQV RIWKH FDYHUQ FRPSOH[ ILOOHG ZLWK GHHS ZDWHU $Q\RQH XQOXFN\ HQRXJK WR EH 67$57,1*7+(3/$<(56 ZHDULQJ FKDLQ PDLO RU (UX IRUELG SODWH DUPRU ZKLOH 7KH3&VZLOOSUREDEO\KHDUUXPRUVRIWKH6pDKPDWKD·V DERDUG D VKLS WKDW LV FDSVL]HG E\ WKH 6pDKPDWKD ZLOO UHWXUQ VHYHUDO GD\V EHIRUH WKH\ DUH DSSURDFKHG LQ WKH EDUULQJSKHQRPHQDO6ZLPPLQJDELOLW\VLQNOLNHDVWRQH 9RGDJDUD]XQE\D\RXQJPHPEHURIWKH9LVFHUDVRQHRI 7KH/RQJ/DNHUHDFKHVGHSWKVEH\RQG IDWKRPVLQ +\JHJULP·VJUDQGFKLOGUHQZKREX\VWKHPHDFKDGULQNDQG SODFHVDQGLVOLJKWOHVVEH\RQGDERXWIDWKRPV DVNVLIWKH\DUHLQWHUHVWHGLQFRPEDWLQJWKH:DWHUGUDNH ,IVRKHZLOODUUDQJHWRPHHWWKHSOD\HUFKDUDFWHUVLQWKH 5(:$5'6 9RGDJDUD]XQVKRUWO\DIWHUGXVNWKHIROORZLQJHYHQLQJWR 7KHVL]DEOHRSXOHQFHWKDWFRPSULVHVWKH6pDKPDWKD·V WDNHWKHPWR+\JHJULP$WWKDWWLPHKHZLOOOHDGWKHSDUW\ KRDUG LVWKHPRVWVLJQLILFDQWUHZDUG1DHJOLQJ WKHOHJ WKURXJKWRZQWRWKHKRPHRI+\JHJULPLQWKH9LVFHUVWHGH HQGDU\VZRUGRI2VVpDK ZKLFK DQ\RQH IDPLOLDUHQRXJK $ORQJWKHZD\WKH\SDVVVHYHUDOKRPHVLQWKH9LVFHUVWHGH ZLWKWKHWDOHRI2VVpDKZLOOUHFRJQL]HZLWKD+DUG ZLWKWKHLUIURQWGRRUVSDLQWHGZKLWHDVLJQRIPRXUQLQJ 3HUFHSWLRQ PDQHXYHU LV DJUHDW WUHDVXUH LQ DQG RILWVHOI $W+\JHJULP·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iLQKXLO3&VZLOOEHH[SHFWHGWRGLVSHQVHJLIWV IURP FRPEDWWKH:DWHUGUDNH+\JHJULPZLOOEHSOHDVHGDQG WKHLUQHZIRXQGZHDOWKLQWKHJUHDW1RUWKURQWUDGLWLRQRI ZLOODVNWKHPWRDFFRPSDQ\KLPWRDQHYHQLQJPHHWLQJDW JLIWJLYLQJ DQG WR ERDVWIXOO\ GHVFULEH WKHLU H[SORLWV LQ WKH 9LVFHUDVKXLO WR GLVFXVV WKH SUREOHP DQG WR GHFODUH GHWDLO EHIRUH WKH WKURQJ +\JHJULP ZLOO KXPEO\ DVN WKHLUXQGHUWDNLQJSXEOLFO\ VXFFHVVIXO3&VLIWKH\ZRXOGEHZLOOLQJWRSD\WKHZDLUSULN %HDGDURI ZLOO EH SUHVHQW DW WKH PHHWLQJ DQG ZLOO 1R´+HDGSULFHµ RIHDFKRIWKH/DNHIRONVODLQE\WKH DQQRXQFHWKDWEHJLQQLQJDWGDZQRQWKHPRUURZKHKDV 6pDKPDWKD RXW RIWKDW EHDVW·V KRDUG MXVW VS HDFK RUGHUHGDPHUQDFWRDFFRPSDQ\WKH9LVFHUDVWKXUUXFDQWR 2QO\H[WUDRUGLQDULO\PHDQFKDUDFWHUV ZRXOG QRWDQG D WKH DUHD ZKHUH WKH :RUP KDV EHHQ VLJKWHG SUHYLRXVO\ UHIXVDO ZRXOGUHIOHFWSRRUO\XSRQWKHPDQ\ZD\ 7KDWZDUVKLSLVWREHPDQQHGE\RU&XLUODVDQGIURP 6HYHUDOQHJDWLYHDVSHFWVWRVOD\LQJWKH6pDKPDWKDFRXOG GULKWHQUHJXODUVLQDGGLWLRQWRWKH3&VWKHHVFRUWVL]H DULVHWKH3&VFRXOGEHUREEHGE\'XGDQQLVDQG*ULSD VKRXOGGHSHQGXSRQWKHQXPEHURISOD\HUFKDUDFWHUV ,Q SHUKDSV³VHH6HFWLRQV DQG RWKHUSDWURQVDW NHHSLQJZLWKWKH1RUWKURQWUDGLWLRQRIERDVWIXORUDWRU\ WKH9RGDJDUD]XQZLOOH[SHFWWKDWWKH\SXUFKDVHHYHU\RQH 3&VZLOOEHH[SHFWHGWRVWDQGDWWKHPHHWLQJDQGPDNHD GULQNVDQG ZLOO GURSRYHUWDQGDQQR\LQJKLQWV WRWKDW SXEOLFVWDWHPHQWGHQRXQFLQJWKH6pDKPDWKD·VGHVWUXFWLRQ HIIHFW IRUVRPHWLPHWRFRPHDQGWKHDGYHQWXUHUVFRXOG DQGSHUKDSVDQRDWKSURPLVLQJWKHGHDWKRIWKH:DWHU HYHQEHDVVDXOWHGE\HQYLRXVDQGLQHEULDWHG WKXJVLQD GUDNH WDYHUQRURQWKH:HVWRUIDIWHUGDUN

(1&2817(56

:LWKLQLWVFDYHUQ KRPHERWKWKH6pDKPDWKDDQGLWV VSDZQ ZLOODWWDFNDQ\LQWUXGHUVRQVLJKW2QFH3&VDUH LQVLGHWKHODLUUROOWRGHWHUPLQHWKH:RUP·VDFWLYLW\ 6RPHGD\VDIWHUWKH\EHJLQ WKHLUGDLO\IRUD\VRXW XSRQWKH/RQJ/DNHWKHSOD\HUFKDUDFWHUVZLOOHQFRXQWHU ³JRQHILVKLQJLQWKHGHSWKVRIWKH/RQJ/DNH WKH 6pDKPDWKD 2QH RYHUFDVW PRUQLQJ WKH KXJH EHDVW ³QDSSLQJDW ULVHV XS RXW RIWKH ODNH DQG DWWDFNV ,IDIXOO ZHHN KDV ³DZDNHDQGDWKRPHVHHORFDWLRQFKDUWEHORZ HODSVHGVLQFHWKH3&VEHJDQWRKXQWWKH:RUPWKHUHLVD ,IWKH6pDKPDWKDLVDZDNHDQGDWKRPHUROOHYHU\ FKDQFH WKDW WKH WZR VSDZQ ZLOO DFFRPSDQ\ WKHLU PLQXWHV URXQGV WR GHWHUPLQH WKH ORFDWLRQ RIWKH SDUHQWRQDIHHGLQJH[SHGLWLRQ7KHUHDIWHUIRUDOOIXWXUH 6HUSHQW 7KH VSDZQ DUH OLNHO\ WR EH ZLWK WKHLU HQFRXQWHUVXSRQ WKHODNHWKDWFKDQFH LQFUHDVHVE\ PRWKHU LIWKH\DUHQRW UROOWR GHWHUPLQHWKHLUORFDWLRQ HYHU\GD\7KHUHLVDFKDQFHWKDWWKH6pDKPDWKDZLOO WKH\DUHOLNHO\WREHWRJHWKHU DWWDFN HDFK RIWKH ILYH 9LVFHUDV WKXUUXFDQ DQG D 7KH 6pDKPDWKD ZLOO DUULYH ZLWKLQ PLQXWHV LILWV FKDQFH LW ZLOO DVVDXOWWKHPHUQDFRQZKLFK WKH3&VDUH VSDZQDUHLQYROYHGLQFRPEDWLQDQHDUE\FDYHUQLQWKH DERDUG7KH6HUSHQWGRHVVRLQLWLDOO\E\HLWKHUEDVKLQJWKH UHYHUVHVLWXDWLRQWKHVSDZQZLOODUULYHLQPLQXWHV ERDWDOO RQ ERDUGVXIIHUDKDOIVWUHQJWK %DVK DWWDFN RU $OO WKUHH EHDVWV HVSHFLDOO\ WKH DGXOW :RUP XVH WKH DWWHPSWLQJWRFUXVKWKHYHVVHOZLWKD*UDSSOLQJDWWDFN FRQQHFWLQJXQGHUZDWHUWXQQHOV EHWZHHQ ·V LQZKLFKFDVHDOOPXVWPDNHDVXFFHVVIXO9HU\+DUG DQGWKH/RQJ/DNH IUHTXHQWO\,IIRUFHG 0RYLQJ PDQHXYHUWRDYRLG EHLQJWUDSSHGXQGHUQHDWK D WR IOHH D FRPEDWVLWXDWLRQ DOO WKUHH EHDVWV ZLOO XVHWKH FRLORIWKH:RUP³$GUHQDO 0RYHVEDODQFH ZRXOGEH QHDUHVW XQGHUZDWHU URXWH WR HVFDSH WR WKH 6pDKPDWKD·V YHU\KHOSIXOKHUH,IWKHVSDZQDUHSUHVHQWWKH\DUHOLNHO\ *DOOHU\DW ,IDOUHDG\ DW WKH *DOOHU\ WKH FKDQFH WRIROORZVXLWDQGDVVLVWLQWKHDWWDFNXSRQ EHDVWVZLOOILJKWWRWKHGHDWK WKHYHVVHOWKDWWKHLUPRWKHUKDVFKRVHQEXWWKHUHLVD SRVVLELOLW\ WKDW LQ D IHHGLQJ IHUYRU WKH\ ZLOO DVVDXOW 5ROO /RFDWLRQVHH DQRWKHUFUDIWE\EDVKLQJLWRUDWWHPSWLQJWRELWHLW 7KH6p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pDKPDWKDLQPRUWDOFRPEDWZLWKLQWKHEHDVW·VODLUZKLFK :DWHUGUDNH IOHHV (DFK VSDZQ LV OLNHO\WR IOHH D VWXQQLQJEORZDQGKDVDEDVHFKDQFHRIIOHHLQJILUH LV MXVW DV ZHOO IURP WKHLU VWDQGSRLQW IRU WKH SDUW\ KDV SOXVWKHDGGLWLRQVGXHWREXUQGDPDJHGHVFULEHGDERYH EHWWHU RGGV ZKHQ VWDQGLQJ RQ ILUP JURXQG $ FOHYHU (YHQRQHWRUFKZRXOGEHHIIHFWLYHDJDLQVWWKHVSDZQEXW JURXS PLJKW UHDOL]H WKH SRVVLELOLWLHV RI HQJDJLQJ WKH WKHFUHDWXUHVPXVWEHEXUQHGEHIRUHWKH\ZLOOOHDUQWKDW 6pDKPDWKD DQGRU LWV VSDZQ LQ WKH 6WDODFWLWH +DOO DW 0RYHPHQWWKURXJKWKDWFDYHUQE\WKHDGXOW ILUHLVVRPHWKLQJWREHIHDUHG :RUPZKRQRUPDOO\DYRLGVWKHSODFHDQGZRXOGKDYHWR 5HJDUGOHVVRIWKHLULQLWLDOHQFRXQWHUZLWKWKH6pDKPDWKD DQGDVVXPLQJWKHFUHDWXUHLVQRWVODLQDOOIRONLQWKHYLFLQLW\ EHOXUHGWKHUH ZLWKRXWXSVHWWLQJWKHKDQJLQJVWDODFWLWHV ZLOOZLWQHVVDQHYHQWZKLFKSURYLGHVWKHHVVHQWLDOFOXHWR DQG VXIIHULQJ 0+R DWWDFNV LV DQ ([WUHPHO\ ORFDWLQJWKHDERYHZDWHUHQWUDQFHWRWKH6pDKPDWKD·VODLU +DUG PDQHXYHUWKHGLIILFXOW\LV9HU\+DUGIRU 6RPHPLQXWHVDIWHUWKH:RUP·VGHSDUWXUHWKHQHDUE\ LWVVSDZQ 7KLVDGYHQWXUHKDVWKHSRWHQWLDOWREULQJWKH3&VPRUH VKDOHEOXIIVZLOOHUXSWLQDIOXUU\RIQRLV\SDQLFNLQJEOXH SLJHRQVHVFDSLQJIURP &OHYHU3&VZLOOUHFRJ IDPHZLWKDOOLWVSRVLWLYHDQGQHJDWLYHWUDSSLQJVWKDQDQ\ QL]H WKHUH LV VRPH FRQQHFWLRQ EHWZHHQ WKH 6pDKPDWKD·V RWKHU XQGHUWDNLQJ GHVFULEHG LQ /DNHWRZQ ,IWKH JURXS GHSDUWXUHDQGWKHXSVHWELUGVZLWKDVXFFHVVIXO0HGLXP VXFFHVVIXOO\VOD\VWKH6pDKPDWKDEULQJLQJEDFNSURRIRI 6WDWLFPDQHXYHUXVLQJERQXVHVIURP,*IRUD
7+(6e$+0$7+$217+( /$.(

,17+(/$,5

$33(1',&(6 6SDFHGRHVQRWSHUPLWXVWRVSHOORXWHYHU\WKRXJKWRU LQFOXGHVWDWLVWLFV IRUHYHU\PDMRUUROHSOD\LQJJDPHV\V WHP VR ZH LQFOXGH WKH IROORZLQJ DEEUHYLDWLRQV GHILQL WLRQVFLWDWLRQJXLGHOLQHVHWF 6HFWLRQFRYHUVDEEUHYLDWLRQV6HFWLRQHQDEOHV UHDGHUV WR WUDQVODWH FLWDWLRQ UHIHUHQFHV 'HILQLWLRQV RI IUHTXHQWO\HPSOR\HGWHUPVDUHVHWRXWLQ6HFWLRQ

$%%5(9,$7,216 7KHPRVWFRPPRQO\XVHGDEEUHYLDWLRQVDUHOLVWHGKHUH DOSKDEHWLFDOO\DFFRUGLQJWRVXEFDWHJRULHV /$1*8$*(6 $$YDULQ(DVWHOYLVK $G$GQDLF %6%ODFN6SHHFK ((OGDULQ2OGHOYLVK .K.KX]GXO'ZDUYLVK ..XGXN$QFLHQW+REELWLVK /R/RJDWKLJ 00HONRULQ$QFLHQW'DUNVSHHFK 1R1RUWKPDQLVK)RUDGDQLQ5KRYDQLRQ 2U2UNLVKGLDOHFW 44XHQ\D+LJKHOYLVK 66LQGDULQ*UH\HOYLVK 99DODULQ ::HVWURQ&RPPRQ6SHHFK *$0(6<67(06 CfI Cfi[f]k_\I`e^j8[m\ekli\>Xd\,&( D
6285&(6 +RE 7KH+REELW%DOODQWLQHHG /RW57KH/RUGRIWKH5LQJV%DOODQWLQHHG /RW5,7KH)HOORZVKLSRIWKH5LQJ%DOODQWLQHHG /RW5,, 7KH7ZR7RZHUV%DOODQWLQHHG /RW5,,,7KH5HWXUQRIWKH.LQJ%DOODQWLQHHG 6LO7KH6LOPDULOOLRQ+RXJKWRQ0LIIOLQHG 87 8QILQLVKHG7DOHV+RXJKWRQ0LIIOLQHG $87+25,=('38%/,6+(56 $ 8$OOHQ 8QZLQ/WG/RQGRQ %DO%DOODQWLQH%RRNV1HZ
&,7$7,216 6LQFHWKLVLVDJDPHVXSSOHPHQWWKHGHVFULSWLRQVLQWKH FKDUDFWHUJORVVDULHVKDYHEHHQFRQILQHGWRPDWHULDOSHUWL QHQWWRIDQWDV\UROHSOD\LQJ,QRUGHUWRSURYLGHWKHUHDGHU ZLWKDFFHVVWRPRUHLQIRUPDWLRQZHSURYLGHFLWDWLRQVWR VHOHFWHG VHFWLRQV RIWKH ZRUNV KRZHYHU JHQHUDOO\ RQO\ RQHVLJQLILFDQWVHFWLRQLVLQGLFDWHG $OO FLWDWLRQV DUH LWDOLFL]HG %ROG LWDOLF SULQW FLWDWLRQV GHQRWHWKHDUHIHUHQFHWRRQHRI7RONLHQ·VZRUNVRUZKHQ VSHFLILHGWRRQHRUPRUH,&(SURGXFWV,&(·VSXEOLFD WLRQV FRQWDLQ H[WUDSRODWHG PDWHULDO DQGGR QRWFRQWDLQ WH[WDWWULEXWDEOHWR-557RONLHQ ([DPSOH$FLWDWLRQVWDOHV´5HDGCfkI@@@6HH,&(·V D
*/266$5< 7KH IROORZLQJJORVVDU\SURYLGHV WUDQVODWLRQV DQG H[ SODQDWLRQVRIPRVWO\6LQGDULQ WHUPVVSULQNOHGWKURXJK WKLVVXSSOHPHQW

130

Dragons: Monstrous, scaly, serpentine beasts created by Morgoth during the First Age to combat the great Eagles. The mightiest Fire-drakes are winged, and armed with fiery breath that strikes like a flaming tempest. Their flames can set a river steaming like hot tea and reduce a thriving settlement to cinders and ashes. While hardly wise, Dragons are cunning and cruel creatures who can reason, dream, and even prophecy. Nothing pleases a Drake more than sacking a town, gathering its booty into a golden heap, and nesting upon it for a century or two. Dragons do, however, have genuine weaknesses: they tend to grow vain and complacent if unchallenged, giving themselves away in riddling talk, and each bears a soft “birth-spot,” where its armor can be pierced and mortal damage done. Giants: (No. “Stan-éoten”). Huge grotesque humanoids of Northron legend, Giants guard mountain passes and are reputed to be both simple-minded and extremely nearsighted. Tales claim their primary loves to be thunderstorms, drums, rock-throwing, and riddles. They are said to be perpetually hungry and hold an aversion to bright sunlight, which hurts their weak eyes. Goblins: (S. “Orcs”) Originally bred by Morgoth in the First Age, these creatures quickly became servants of Darkness; it is likely they were not inherently evil, but were culturally and mentally predisposed toward the “foul life.” Legend has it that their ancestors were Elves who were twisted in mind and body by the Black Enemy. Only the strongest and most vile breeds, such as the Urukhai, can withstand the light of day without cringing. The Goblins of Wilderthand grow increasingly bold, and have taken to raiding isolated Northron homesteads and communities from astride the backs of huge War-wolves on the darkest nights. Gondor: See “Stoningthand.” Great Plague: A horrible epidemic that first struck Wilderthand in T.A. 1635 and swept through Gondor in T.A. 1636-37. Northrons: Also called Northmen, they comprise a varied group of tall, strong, and hairy folk descended from the “Middle Men.” As such, they stand culturally and physically between the “High Men,” or Edain, and “Common Men.” Branches of the Northrons residing in Wilderthand (circa T.A. 1640) include: the Beijabar (No. “Warriorbears of Yore”), the Dale-folk or Dalethéod (No. “Valley-folk”), the Éothraim (No. “Horse-folk”), the Estaravi (No. “Enduring Sufferers”), the Plains-folk or Gramuz (No. “Grasslanders; Fierce Race”), the Lake-folk or Séahthéod (No. “Lake Folk”; including the East Bight inhabitants), the Nenedáin (S. “Water People”), and the Woodfolk or Widulingas (No. “Wood People”). Northrons are reknowned for their boisterous forwardness, both in warcraft and in revelry. Orcs: See “Goblins.” Raft-elves: A kenning for the Silvan and few Nando and Sinda Elves who reside in the Wood-elven village of Celebannon upon the Forest River. The Raft-elves serve as the main players of Forest River trade. Employing

sturdy rafts and nimble, birchbark canoes called Sirithorn (S.“Flowing River-wood”), they conduct trade between the reclusive Wood-elves of Mirkwood and the outside world (especially the folk of Lake-town). Rhovanion: See “Wilderland.” Sagath: A large group of short, war-like, nomadic Easterling tribes who occupy the lands between Mirkwood and the Sea of Rhûn. Extraordinarily xenophobic, the Sagath’s main form of diplomacy is a sharp spear. Like their distant kinsfolk, the Asdriags, the Sagath are reknowned for their horsemanship. They migrate in the great wagons that serve as their homes and store-houses. Thus, the Northmen call them “Wain-riders” or “Wain-easterlings.” Stoningthand: (No. “Stone-land”; S. “Gondor”) The vast Dúnadan realm that lies west of Mordor and north of the Bay of Belfalas. Osgiliath on the Anduin serves as the Gondorian capital until T.A. 1640, when the throne is moved to Minas Arnor (Minas Tirith). Pelargir on the lower Anduin is the realm’s chief port. Trolls: Morgoth bred the first Trolls (S. “Tereg”; sing. “Torog”) during the Great Darkness of the Elder Days. Fashioned in mockery of Ents, his repulsive creations (like the Naugrim) embody the character of stone, with comparable strength, hardness, and intellect. The original Stone-trolls have, over the years, diversified into several other species, including Cave-, Snow-, Hill-, and Foresttrolls. Trolls face two principal handicaps: direct sunlight, which transforms them back to lifeless stone, and phenomenal stupidity. Sauron’s Olog-hai, however, serve as a frightful exception to these norms. Wilderthand: (S. “Rhovanion”). Traditionally, a vast region encompassing all the land south of the Grey Mountains, north of Mordor, east of the Misty Mountains, and west of the River Redwater. This area includes Mirkwood, and the northern Anduin (S. “Great River”; No. “Langflood”) valley. Some scribes count the whole of the area between Mirkwood and the Sea of Rhûn, save Dorwinion, as part of Wilderthand. Winethand: (S. “Dorwinion”). An eastern realm of rolling hills, vineyards, and olive groves situated due east of Rhovanion. It is bounded by the River Running to the north and the Sea of Rhûn to the east. Gaerandil Cirya (S. “Sea-wanderlust Ship”), the Realm Master of the Dorwinadan people, resides at their chief town, ShrelKain. Wood-elves: The carefree and magical Silvan, Nando, and Sinda Elves who inhabit the northern glades of Mirkwood the Great. The immortality of the Woodelves, coupled with their extreme xenophobia, causes most of their neighbors to disdain their frequent feasting and merry-making as frivolous. Both Hildor and Naugrim regard them with extreme suspicion. The Elven-king Thranduil (S. “Halls of Star-shadow”) holds court in his limestone palace-under-the-hill, Aradhrynd (S. “Halls of the Elvenking”). Undead: Beings whose bodies have died but whose spirits have not yet departed from Arda, or Shadow-creatures who remain tied to the mortal world as a result of some heinous enchantment.

7$%/(6 0(535013&7$%/( 1DPH

/YO

+LWV

$7

5(6,'(1762)(6*$527+ 5/ 2GDJDYLD

'%

6K

*U

0HOHH2%

<

<

EV

0LVVOH2% 0RY0 1RWHV FS

/DNHPDQ :DUULRU)LJKWHU

7UDGHU 0DHWDRI(VJDURWK0DHVWHQFDSSHVHH 50VWDWV&R$J6'0H5H6W4X3U(P,Q 0(53VWDWV6W$J&R,J,W3U$S6NLOOV$GPLQ$SSU'LSO /HDG1DY3HUF36S5LGH5RZ 6DLO6 +6ZLP7UDG

%HDGDURI

&K

<

<

EV

FS

/DNHPDQ :DUULRU)LJKWHU

:HQGULKWRI(VJDURWK$OVRILJKWVZLWKVS RUVV%QRQPDJLFDO EURDGVZRUG2%VSHDU'%VKLHOG50VWDWV&R$J 6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV3HUF36S5LGH 5RZ6DLO6 +6 76ZLP

0DHWKHOJDU

&K

<

$

EV

FS

/DNHPDQ%DUG

(VJDURWK·V&ULHU[33KRUQ50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J ,W3U$S6NLOOV$GPLQ%6S&OLPE'LSO/DZ3HUF3OD\+RUQ3OD\/\UH3OD\5HFRUGHU36S5LGH6LQJ 6 +6ZLP$OO%DUG%DVHOLVWV(VVHQFH·V:D\VWRWK0(53 DOO%DUG%DVHOLVWV'HWHFWLRQVWR WK50

%RJDWXQJ

1R

1

1

TV

³

/DNHZRPDQ 0DJH6HHU

5HNQRZQHGZ\UGWHOOHU9LVNQDN\QRUDFOH)LVKERQHUDWWOHVWDII[33PXOWLSOLHU %OLQG VLJKWEDVHGVNLOOVPDUNHG ZLWK DUHXVDEOHRQO\ WKURXJK%RJDWXQJ·VIDPLOLDU(WHQOHD[50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R ,J,W3U$S6NLOOV$WWXQ%6S'LYQ0LP3HUF5LGH5XQH6LQJ6/$6WDU*,6ZLP7ULFN9HQW :HD:33 (VVHQFH3HUFHSWLRQV6SLULW0DVWHU\:LQG/DZ:DWHU/DZ'HWHFWLRQ0DVWHU\&DOP6SLULWV6SHOO'HIHQVH3URWHFWLRQV 1DWXUH·V/RUH6RXQG/LJKW:D\VWR WK0(53 *DWH0DVWHU\*DV0DQLSXODWLRQ/LTXLG0DQLSXODWLRQ0LQG0DVWHU\ DOO6HHU%DVHOLVWVWR WK50

6KLQULQF

1R

1

1

VS

³

/DNHPDQ$QLPLVW

9LVNQDN\QSULHVW(HOVNLQWDPERXUVSHOODGGHU50VWDWV&R$J0H5H6W4X3U(P,Q0(53VWDWV6W$J &R,J,W3U$S6NLOOV$WWXQ%6S%RDW3&KDQ&OLPE'LYQ)$LG)LVK0HGFOHDQVH 1DY3HUF3OD\ 7DPERXU36S5LGH50DV5RZ5XQH6DLO6 +6XU*6ZLP336XUIDFH:D\V3URWHFWLRQV1DWXUH·V/RUH%ORRG :D\V3XULILFDWLRQV'LUHFW&KDQQHOLQJWR WK0(53 %ORRG/DZ&RQFXVVLRQ:D\V3XULILFDWLRQV&HUHPRQLHV:HDWKHU0DVWHU\)LVKHUPDQ·V :D\VWR WK50

*DHUYLFFD

5/

<

<

EV

VS

$QLPLVW/D\ +HDOHU

/DNHZRPDQGULKWHQOHHFKKHDOHU%ORRGVWRQHDPXOHWVSHOODGGHU50VWDWV&R$J6'0H5H6W4X3U(P,Q 0(53VWDWV6W$J&R,J,W3U$S6NLOOV$WWXQ%6S&OLPE&RRN'LSO)$LG)RU0HGKHDO 0:LIH 3HUF5LGH5XQH6 +6XEG6ZLP336XUIDFH:D\V&DOP6SLULWV1DWXUH·V0RYHPHQW3URWHFWLRQV%ORRG:D\V2UJDQ:D\V 3XULILFDWLRQV%RQH0XVFOH:D\V3ODQW0DVWHU\&UHDWLRQVWR WK0(53 $WWDFN$YRLGDQFH0RYHPHQWDOO/D\+HDOHU%DVHOLVWVWR WK50

:RIIXQJ

6/

1

1

ON

ON

:DUULRU5RJXHDVVDVVLQ

:RRGPDQWRZQMHVWHU6S\IRUWKH1HFURPDQFHU&RDWVEODGHZLWK8UDDQDRU%ODGH+HPORFN3DWFKZRUNFORDNFDVWVOYO6KDGRZ[GD\PLQ GXUDWLRQ )RROVFDSFDVWVOYO6LOHQFH[GD\50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W $J&R,J,W3U$S6NLOOV$FUR$FW$PE&OLPE&RQW'DQFH'LSO'7UDS'LVJX-XJ3HUF 3/RFN36S5LGH6.LOO6LQJ6 +6ZLP7ULFN7XPE853

*XGULQF

&K

1

<

ED

FS

/DNHPDQ :DUULRU)LJKWHU

&XLUODQGKDQJPDQ$OVRXVHVVS'%FKDLQPDLO50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV 6W$J&R,J,W3U$S6WDWV%RDW3&OLPE*DPE,QWHU-XPS1DY5LGH50DV5RZ6DL,6 + 6 76XEG6ZLP

*XWKZLQ

&K

<

<

EV

VS

/DNHPDQ :DUULRU)LJKWHU

&XLUODQG%ULGJH*XDUGFDSWDLQ$OVRXVHVFS2%EURDGVZRUG50VWDWV&R$J6'0H5H6W4X3U(P,Q 0(53VWDWV6W$J&R,J,W3U$S6NLOOV$SSU&OLPE'LSO'UXJ7DOFRKRO 3HUF36S5LGH5RZ 6DLO6 +6 76ZLP

&KORGRPLU

&K

<

$

EV

FS

/DNHPDQ :DUULRU)LJKWHU

'ULKWHQPHPEHU%ULGJH*XDUG DQGGULOOEDJSLSHU$OVRXVHVVSEDJSLSHV50VWDWV&R$J6'0H5H6W4X3U (P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV&OLPE'LSO3HUF3OD\%DJSLSHV 5LGH5RZ6DLO 6 +6 76ZLP

&KORWDU

&K

<

$

EV

FS

/DNHPDQ :DUULRU)LJKWHU

'ULKWHQPHPEHU%ULGJH*XDUG DQGGULOOEDJSLSHU&KORGRPLU·VWZLQ$OVRXVHVVSEDJSLSHV50VWDWV&R$J6'0H5H 6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV&OLPE'LSO3HUF3OD\%DJSLSHV 5LGH 5RZ6DLO6 +6 76ZLP

eRGRULF

&K

<

$

EV

FS

/DNHPDQ :DUULRU)LJKWHU

'ULKWHQPHPEHU$OVRXVHVVS50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J ,W3U$S6NLOOV&OLPE1DY3HUF36S5LGH50DV5RZ6DLO6 +6 76ZLP

0(535013&7$%/(

1DPH 9RUPHQULF

/YO

+LWV

$7

'%

6K

*U

5/

1

<

0HLEH2% 0LVVOH2% 0RY0 1RWHV EV

FS

:DUULRU)LJKWHUPHUFKDQW

/DNHPDQNU\QRIDPHUFKDQWHGIUHDKLU50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J &R,J,W3U$S6NLOOV$SSU%RDW3%ULE&OLPE'LSO)DOV*DPE1DY3HUF36S5LGH5RZ6DLO 6WDU*6ZLP7UDG:HD:

)UHDPXQG

&K

1

1

EV

FS

:DUULRU)LJKWHUPHUFKDQW

/DNHPDQNU\QRIDPHUFKDQWHGIUHDKLU$OVRXVHVVS*ODVVOHQVFDVWVOYO$VVHVVPHQW7UXH[ZN50VWDWV&R$J6'0H5H6W 4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$SSU%RDW3%ULE&OLPE'LSO)DOV *DPE1DY3HUF3OD\5HEHF36S5LGH5RZ6DLO6 +6XU*6ZLP7UDG:HD:

%HRUWQRY

5/

<

1

KD

KD

:DUULRU)LJKWHUVDLORU

/DNHPDQERDWFDSWDLQLQ)UHDPXQG·VHPSOR\$OVRXVHVFS50VWDWV&R$J6'0H5H6U4X3U(P,Q0(53 VWDWV6W$J&R,J,W3U$S6NLOOV$0RYEDO %RDW3&OLPE'LSO*DPE1DY3HUF5LGH50DV 5RZ6DLO6WDU*6ZLP

%ORVRPD

1R

1

1

GD

³

/DNHZRPDQ 0DJH6RUFHUHVV

)UHDPXQG·VGDXJKWHU6FDUIVSHOODGGHU)LPILQGLOVHH 50VWDWV&R$J6'0H5H6W4X3U(P,Q 0(53VWDWV6W$J&R,J,W3U$S6NLOOV$WWXQ%6S'DQFH0DJLF53HUF5LGH5XQH6HG6HZ 6LQJ6 +6WDU*6ZLP33)LUH/DZ/LJKW/DZ:LQG/DZWRWK0(53 )OHVK'HVWUXFWLRQ)OXLG'HVWUXFWLRQ 0LQG'HVWUXFWLRQWR WK50

9LFODI

6/

<

1

EV

FS

/DNHPDQ5DQJHU

+UpRZDOGD·VHOGHUVRQ:ROIVWRRWKQHFNODFHVSHOODGGHU50VWDWV&R$J6'0H5H6W4X3U(P,Q 0(53VWDWV6W$J&R,J,W3U$S6NLOOV$PE&OLPE'6HQVH)RU3HUF3OD\5HEHF5LGH5RZ6DLO 6LQJ6 +6ZLP7UDFN333DWK0DVWHU\WRWK0(53DQG50

5LJXQWKD

5/

1

1

EV

FS

:DUULRU)LJKWHUPHUFKDQW

/DNHZRPDQNU\QRIDPHUFKDQWHGIUHDKLU(PEURLGHUHGOHDWKHUYHVW\LHOGV$7$S50VWDWV&R$J6'0H5H6W4X 3U(P,Q0(53VWDWV6W$J&R,J,W3U$S 6NLOOV$QLP7$SSU&OLPE'LSO1DY3HUF5LGH 6HZ6 +6ZLP7UDG33,WHP/RUHWRWK0(53 'HOYLQJWRWK50

$JLOXOI

6/

1

1

EV

VS

:DUULRU)LJKWHUPHUFKDQW

*UDPX]SURPLQHQWVKLSPHUFKDQW50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R ,J,W3U$S6NLOOV$SSU%RDW3%ULE&OLPE'LSO*DPE)DOV1DY3HUF5LGH5RZ6DLO6LQJ 6 +6WDU*6ZLP7UDG:HD:

7KDOeROVHQ

1R

1

1

ON

ON

:DUULRU)LJKWHUPHUFKDQW

/DNHPDQSURPLQHQWFDUDYDQPHUFKDQW50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J &R,J,W3U$S6NLOOV$QLP7$SSU%ULE&OLPE'LSO)DOV1DY3HUF36S5LGH6 +6ZLP 7UDG:HD:

5RWKDDU

&K

<

$

ZK

OE

:DUULRU)LJKWHUEDUEDULDQ

:RRGPDQFDUDYDQPDVWHULQ7KDOeROVHQ·VHPSOR\2%ZDUKDPPHU 2%(OYLVKORQJERZ5LQJRI+HDOLQJKHDOVKLWVUQGSWRI EOHHGLQJUQGDQGPHQGVRWKHUSK\VLFDOGDPDJHDW[QRUPDOVUDWHZRUNV[GD\IRUXSWRUQGV 50VWDWV&R$J6'0H5H 6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV&OLPEQRQVKHHUVXUIDFHV 'UXJ7DOFRKRO )RU3HUF5LGH6 +6ZLP7UDFN 331DWXUH·V/RUHWRWK0(53 :HDWKHU:D\VWRWK50

$QWKDULV

&K

<

/

KD

VE

:DUULRU)LJKWHUPHUFKDQW

(VWDUDYHLQGHSHQGHQWPHUFKDQWFDUDYDQPDVWHU00DQG'%FKDLQVKLUW50VWDWV&R$J6'0H5H6W4X3U(P ,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$QLP7HTXLQH &OLPE'LSO'6HQVH)RU3HUF 3OD\5HFRUGHU5LGH50DV6 +6ZLP7UDG7ULFN

*XWKODI

1R

1

1

KD

KD

/DNHPDQ FUDIWVPDQ

&RRSHU.U\QRI%\GHQERWWDQ1R´7XE)L[HUVµ $OVRXVHVFRQFHDOHGGDFRDWHGZLWK8UDDQD50VWDWV&R$J6'0H5H6W 4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$GPLQ%ULE&RRS'UXJ7DOFRKRO *DPE 3HUF5LGH6ZLP7UDS%:RRG

6LJHEHRUWD

6/

1

1

ZK

ZK

/DNHZRPDQ FUDIWVZRPDQ

&RRSHU.U\QRI%\UODE\WODV1R´%DUUHOPDNHUVµ $OVRXVHVKD0DJLFZRRGZRUNLQJKDPPHUFDVWVOYO0ROG:RRG[GD\50VWDWV&R $J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$GPLQ&OLPE &RRS'LSO3HUF5LGH6ZLP7UDS%:RRG

0HURYHFK

6/

1

<

KD

KD

/DNHPDQ FUDIWVPDQ

&RRSHU.U\QRI7XQQHFUDIWDV1R´7XQ%XLOGHUVµ $OVRXVHVVS50VWDWV&R$J6'0H5H6W4X3U(P,Q 0(53VWDWV6W$J&R,J,W3U$S6NLOOV$GPLQ&RRS'LSO3HUF36S5LGH6ZLP7UDG:RRG

6ZHUWOLQJ

5/

1

1

KD

KD

/DNHPDQ FUDIWVPDQ

&RRSHU.U\QRI%\UHOE\OGDV1R´%DUUHOPDNHUVµ $OVRXVHVEV50VWDWV&R$J6'0H5H6W4X3U(P,Q 0(53VWDWV6W$J&R,J,W3U$S6NLOOV$GPLQ$0RYEDO &OLPE&RRS3HUF3OD\)OXWH5LGH5RZ 6DLO6ZLP7UDS%:RRG

0(535013&7$%/( 1DPH *RVKDIRF

/YO

+LWV

$7

'%

6K

*U

0HOHH2%

6/

<

1

KD

0LVVOH2% 0RY0 1RWHV FS

/DNHPDQ FUDIWVPDQ

&DUSHQWHU.U\QRI+XGDQE\OGDV1R´+RXVH%XLOGHUVµ ERGKUDQ50VWDWV&R$J6'0H5H6W4X3U(P ,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV%XLOG&OLPE'UXJ7DOFRKRO *DPE3HUF3OD\%RGKUDQ 5LGH5RZ6DLO6 +6ZLP7UDG:RRG

2GDOLQGD

5/

1

1

KD

KD

/DNHZRPDQ FUDIWVZRPDQ

:DLQZULJKW.U\QRI:RGXFUDIWDV1Rµ:RRGZRUNHUVµ 50VWDWV&R$J6'0H5H6W4X3U(P,Q 0(53VWDWV6W$J&R,J,W3U$S6NLOOV&OLPE)RU3HUF36S5LGH5RZ6LQJ6 +6ZLP 7UDG:DLQ:RRG

*QRUQ

6/

1

1

EV

FS

/DNHPDQ FUDIWVPDQ

0XVLFDOLQVWUXPHQWPDNHUZRRGZRUNHUVHWRIWXQLQJIRUNV(TXDOO\SURILFLHQWLQDOOZRRGZLQGLQVWUXPHQWV50VWDWV&R$J6' 0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV&OLPE,QVW03HUF 3OD\:RRGZLQG5LGH5RZ6LQJ6 +6ZLP:RRG 33:RRG6KDSLQJWR WK50

6DKDOL

1R

1

1

ON

FS

/DNHZRPDQ FUDIWVPDQ

6LJQSDLQWHU50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S 6NLOOV$SSU&OLPE'DQFH)RU3DLQW3HUF36S5LGH6FXOSW6 +6ZLP:RRG

+\JHJULP

6/

<

<

VS

VS

:DUULRU)LJKWHUVDLORU

/DNHPDQNU\QRI9LVFHUDV(GIUHDKLU$OVRXVHVQW ILVKLQJQHW0DJLFSHJOHJZLOOQRWVLQN(DUULQJDOORZVFDVWLQJRIOYO)RJ9LVLRQ[GD\ PLQGXUDWLRQ 50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U $S6NLOOV$0RYEDO %RDW3&OLPE'PJ7DOFRKRO )LVK1DY1603HUF5LGH50DV5RZ6DLO6 + 6XEG6ZLP:HD:

%pRWWD:HEED

1R

1

1

VS

FS

/DNHZRPDQ FUDIWVZRPDQ

.U\QRI9HEEDV1R´:HDYHUVµ 0DJLFORRPREH\VYHUEDOFRPPDQGVRIRZQHU6SLGHUVLONFORDN6 +50VWDWV&R$J6'0H 5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$WWXQ&OLPE&RRN'LSO)RU +HUG3HUF36S5LGH5RZ6HZ6SLQ6 + 6ZLP7UDG:HDYH

8QQ

6/

1

1

ON

ON

/DNHZRPDQ FUDIWVZRPDQ

.U\QRI&ODWKZ\UNHQGDV1Rµ&ORWKZRUNHUVµ 0DJLFVSLQQLQJZKHHOVSLQVVWUDZLQWRILQHFORWK[ZN'LVWDIIFDVWVOYO:RUN&ORWK[ZN (PEURLGHUHGVKLIW'%$S50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R ,J,W3U$S 6NLOOV$WWXQ'LSO/HDG0:LIH3HUF36S5RZ6HZ6SLQ6ZLP7UDG:HDYH

+HUHZXOI

6/

1

1

EV

FS

/DNHPDQ FUDIWVPDQ

&ORWKG\HU1R´WHOJXQJDVµ 50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J ,W3U$S6NLOOV&OLPE&'\H'LSO3DLQW3HUF36S5LGH5RZ6HZ6 +6ZLP7UDG

5LQHO

5/

1

1

EV

FS

/DNHZRPDQVDLORU

6DLOPDNHU50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S 6NLOOV$0RYEDO &OLPE1603HUF50DV5RZ6DLO6HZ6ZLP

)UHGHJRQGH

1R

1

1

ON

³

'DOHZRPDQ 0DJH:LWFK

&KDQGOHU,URQFDOGURQ&DQGOH$VVRUWHGPDJLFDOO\FKDUJHGFDQGOHVDQGSRWLRQV50VWDWV&R$J6'0H5H6W4X3U (P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$OFK$WWXQ%6S&DQGOH &KDQ&RRN'LYQ )RU3HUF5XQH6 +6WDU*6ZLP7UDG:HD: 33(VVHQFH+DQG6SLULW0DVWHU\6SHOO:D\V(VVHQFH·V:D\V 3K\VLFDO(QKDQFHPHQW,OOXVLRQVWR WK0(53 &DQGOH0DJLF3RWLRQ0DJLF*ODPRXUV1DWXUH·V0DVWHU\(DUWK0DVWHU\WR WK50

*HOGD

1R

1

1

ON

'DOHZRPDQ 0DJH:LWFK

)UHGHJRQGH·VDSSUHQWLFHDQGGDXJKWHU50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J &R,J,W3U$S6NLOOV$WWXQ%6S&DQGOH&OLPE&RRN'DQFH'LYQ3HUF5XQH6HG6 +6WDU* 6ZLP7UDG33,OOXVLRQV6SHOO:D\VWR WK0(53 &DQGOH0DJLF3RWLRQ0DJLFWRWK50

(RUPHQOLF

&K

1

$

WK

FS

:DUULRU)LJKWHUVPLWK

/DNHPDQNU\QRI$LUQVNiSDUDV1R´,URQ6PLWKVµ $OVRZLHOGVEVDQGVS2%QRQPDJLF WZRKDQGHGVZRUGZLWKUXQHV'%FKDLQ VKLUWZHDUVDV5/50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U $S6NLOOV%UDZO&OLPE)UHQ3HUF5HY65LGH6PLWK6 +6WXQ6ZLP7XPE33%ODGHUXQHVWRWK50

/LQORFF0DHOD

6/

<

1

ZK

FS

/DNHPDQVLOYHUVPLWK ILJKWHU

(VJDURWK·V&RLQHU$OVRXVHVVS3HW+RXQGQDPHG'ROJ50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53 VWDWV6W$J&R,J,W3U$S6NLOOV$OFK$SSU&RLQ-HZHO3HUF5LGH6PLWK6 +6ZLP7UDG

+HPPLQJ

5/

<

<

EV

FS

:DUULRU)LJKWHUFREEOHU

*UDPX]NU\QRI+~GKZLUWDV1R´/HDWKHUZRUNHUVµ $OVRXVHVVS2%FRPSRVLWHERZ'%OHDWKHUDUPRU50VWDWV&R$J6' 0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$WWXQ&OLPE'UXJ7DOFRKRO )RU-XPS/:RUN3HUF5LGH5RZ6NLQ6 +6 76ZLP7DQ

0(535013&7$%/(

1DPH

/YO

+LWV

$7

'%

6K

*U

0HOHH2%

)ROJDU

6/

<

1

VS

0LVVOH2% 0RY0 1RWHV FS

/DNHWRZQ FUDIWVPDQ

7DQQHU/HDWKHUFRDWZHDUVDV$76/SURWHFWVDV$76/'%50VWDWV&R$J6'0H5H6W4X3U(P,Q 0(53VWDWV6W$J&R,J,W3U6NLOOV$QLP+)RU/:RUN3HUF5LGH6NLQ6 +6ZLP7DQ7UDFN 7UDS%

)ORWD

5/

<

1

VS

FS

/DNHZRPDQVDLORU

5RSHPDNHU50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S 6NLOOV&OLPE1603HUF50DV5RSH05RZ6DLO6 +6WDU*6ZLP

+ROWLQJ

5/

<

1

ZK

FS

'DOHPDQ FUDIWVPDQ

6WRQHPDVRQFKLPQH\HU50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W 3U$S6NLOOV$QLP7DYLDQ &OLPE0LQH3HUF5LGH5RRI6FXOSW6WRQH6ZLP

+XUP:DWROHU

1R

1

1

ON

ON

/DNHPDQEXUJODU

5RRIWKDWFKHUELUGORYHU%LUGFDOOVXPPRQVD7KUXVK[GD\FKDQFH 50VWDWV&R$J6'0H5H6W4X3U(P ,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$FUR$0RYEDO $QLP7DULDQ &OLPE-XPS3HUF5LGH 5RRI50DV6 +6ZLP

*ULSD

1R

1

1

ON

ON

/DNHPDQEXUJODUWKDWFKHU

:DWROHU·VDSSUHQWLFHFDWEXUJODUDQG'XGDQQLV·ORYHU/RFNSLFNWRROV/3LFNQRQPDJLFVKXWWHUODWFKHVRQO\ 50VWDWV&R$J6' 0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$FUR$0RYEDO $0RYODQG $PE$SSU&OLPE'7UDS-XPS3HUF3/RFN 5LGH5RRI50DV6SUW6 +6XEG6ZLP

/DQQLQJ

6/

1

$

ON

ON

6FRXW7KLHIWKDWFKHU

/DNHPDQ:DWROHU·VDSSUHQWLFH50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J ,W3U$S6NLOOV$FUR$0RYEDO &OLPE*DPE-XPS3HUF3OD\/XWH5LGH5RRI50DV5RZ6 + 6ZLP

(JLO

1R

<

1

0$

OE

%HLMDEDU 6FRXW7KLHI

%DNHU$OVRXVHVEV50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W 3U$S6NLOOV$PE&OLPE%UHZ&RRN'DQFH'UXJ7)RU*DPE0$6 7 3HUF5RZ6 +6ZLP

6DHZXOI

6/

<

$

PD

FS

/DNHPDQVDLORU

0DULWLPHVXSSOLHU$OVRXVHVVS50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R ,J,W3U$S6NLOOV$0RYEDO $PE%RDW3&OLPE'7UDS1DY3HUF3/RFN50DV5RZ6DLO6 + 6WDU*6ZLP

9DOGRU

&K

<

1

EV

FS

/DNHPDQ :DUULRU)LJKWHU

*HQHUDOVWRUHSURSULHWRU2%VWHHOEURDGVZRUGQRQPDJLF 2%.LQHKRUQERZQRQPDJLF 50VWDWV&R$J6'0H5H 6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$SSU&OLPE*DPE-XPS3HUF 5LGH5RZ6 +6ZLP:RRG

8SKHOE

1R

1

1

ON

ON

/DNHPDQ$QLPLVW

7RZQEDUEHUKHUEDOLVW&KLPHVLQVKRSZLQGRZ DOOZKRKHDUWKHPPXVWUHVLVWDOYO &DOPVSHOO50VWDWV&R$J6'0H5H 6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$QLP+%DUE%6S&KDQ&OLPE &RRN)$LG)RU0HGVOHHS 3HUF5LGH5XQH6 +6ZLP:HD:336XUIDFH:D\V%ORRG:D\V3XULILFDWLRQV 3ODQW0DVWHU\WR WK0(53 /RFDWLQJ:D\V3ODQW0DVWHU\+HUE0DVWHU\+HUE/RUHWR WK50

eRWKZ\Q

5/

<

/

EV

VE

eRWKUDLPI IDUPHU

6WDEOHPDVWHURVWOHU6WUDZKRUVHEUXVKFDVWVOYO )UHVKHQ[GD\$OVRXVHVPO50VWDWV&R$J6'0H5H6W4X3U (P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$QXQ+$QLP7HTXLQH %HDVW0HTXLQH &OLPE*DPE +HUG/:RUN3HUF5LGH50DV6PLWK6 +6ZLP

&DUORPDQ

6/

<

/

EV

FS

'DOHPDQ IDUPHU

6WDEOHER\50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S 6NLOOV$QLP+$QLP7HTXLQH %HDVW0HTXLQH &OLPE'UXJ7DOFRKRO *DPE3HUF5LGH50DV6PLWK6 + 6ZLP

5RWDULV

6/

<

/

KD

VE

*UDPX] IDUPHU

6WDEOHER\$OVRXVHVPO50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W 3U$S6NLOOV$QLP+$QLP7HTXLQH &OLPE'UXJ7DOFRKRO *DPE-XPS/:RUN3HUF5LGH50DV6 + 6ZLP

.\QRGHQ

1R

1

1

EV

GD

6FRXW7KLHIERDWZULJKW

/LNHPDQNU\QRI%RHGE\OJDVDQGKHDGRIVPXJJOHUV·ULQJ$OVRXVHVKD,QYLVLEOHGDJJHUUHWXUQVWRWKURZHULQUQG UDQJH %RRWVFDVWOYO /DQGLQJDQGOYO6LOHQW0RYHV[GD\HDFK&ORDN6 +VSHOODGGHUULQJ´RIHYDVLRQµ'%50VWDWV&R$J6'0H5H 6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$GPLQ$PE$SSU%RDW3%ULE &OLPE'LSO)DOV1DY3HUF36S5LGH50DV5RZ6DLO6KLS:6 + 6 76ZLP 33,WHP/RUHWRWK 0(53 'HOYLQJWRWK50

0(535013&7$%/( 1DPH +LOGHJULSD

/YO

+LWV

$7

'%

6K

*U

0HOHH2%

6/

1

1

FO

0LVVOH2% 0RY0 1RWHV GD

/DNHZRPDQ :DUULRU5RJXH

´7KH/HDQµ3URSULHWUHVVRI(UDQQXQ,QQVPXJJOHU7ZRPHDQJXDUG+RXQGV*ULQJDQG+U\ILQJHDFKZLWKDVSLNHGOHDWKHUFROODU 1RQPDJLF VDQGILOOHGOHDWKHUEODFNMDFN6XEG50VWDWV&R$J6'0H5H6W4X3U(P,Q 0(53VWDWV6W$J&R,J,W3U$S6NLOOV$PE$QLP7FDQLQH $SSU%LOO%UDZO%UHZ%ULE&OLPE '7UDS'UXJ7DOFRKRO *DPE3HUF3/RFN5RZ6 +6XEG 6ZLP7UDG

9RJLU

1R

1

1

VV

FS

/DNHPDQ6FRXW7KLHI

6PXJJOHUDQGUHVLGHQWRIWKH(UDQQXQ5LQJFDVWVOYO:DWHUOXQJV[ZHHNKUPD[ 50VWDWV&R$J6'0H5H6W4X 3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$PE$SSU%ULE&OLPE'LSO'UXJ7DOFRKRO *DPE,QWJ1DY3HUF3/RFN5LGH50DV5RZ6DLO6 +6XEG6ZLP7ULFN

6DHZLF

5/

1

<

KD

KD

:DUULRU5RJXHVKLSZULJKW

/DNHPDQVPXJJOHU%RHGE\OJDVPHPEHU:HDUVDQH\HSDWFK50VWDWV&R$J6'0H5H6W4X3U(P,Q 0(53VWDWV6W$J&R,J,W3U$S6NLOOV$SSU%UDZO&OLPE*DPE3HUF5LGH50DV5RZ6DLO 6KLS:6 +6ZLP7UDG

2GDYDFHU

6/

<

$

PD

FS

/DNHPDQ :DUULRU)LJKWHU

2ZQHURIWKH9RGDJDUD]XQ2%ERZRI2UFVOD\LQJ50VWDWV&R$J6'0H5H6W4X3U(P,Q 0(53VWDWV6W$J&R,J,W3U$S6NLOOV%LOO%UDZO%UHZ&RRN'LVDUPXQDUPHG 'UXJ7DOFRKRO *DPE3HUF5LGH6DLO6LQJ6 +6XEG6ZLP

%UXQHKDXW

6/

1

1

ON

³

$QLPLVW/D\ +HDOHU

/DNHZRPDQeRWKUDLPPLGZLIHVSRXVHRI2GDYDFHU5XQHVWLFNFDVWVOYO/DFWDWLRQ&RQWURODQG)HUWLOLW\&RQWURO[ZNHDFKGD\GXUDWLRQIRU HDFK 50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S 6NLOOV%6S%LOO%UHZ&RRN'DQFH)$LG0:LIH3HUF5LGH5XQH6 +6XEG6ZLP336XUIDFH:D\V %ORRG:D\V2UJDQ:D\V3XULILFDWLRQV%RQH0XVFOH:D\V3ODQW0DVWHU\WRWK0(53 0LGZLIHU\DOO/D\+HDOHU%DVHOLVWVWR WK50

6KDJHOGD

1R

1

1

GD

GD

/DNHZRPDQ 0DJH6RUFHUHVV

%DUPDLGDWWKH9RGDJDUD]XQ%UXQHKDXW·VHOGHUGDXJKWHU(DUULQJ[33&ORDNFDVWVOYO'LVSHO(VVHQFH [GD\ 5 50VWDWV&R$J 6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$WWXQ%6S%LOO 'DQFH'6S3HUF36S5LGH5XQH6HG6WDU*6ZLP33)LUH/DZ/LJKW/DZ,FH/DZ:DWHU/DZWR WK0(53 )OHVK'HVWUXFWLRQ)OXLG'HVWUXFWLRQ0LQG'HVWUXFWLRQ6RXO'HVWUXFWLRQWRWK50

$XG

1R

1

1

ON

³

$QLPLVW/D\+HDOHU

/DNHZRPDQFRRNDWWKH9RGDJDUD]XQ%UXQHKDXW·V\RXQJHUGDXJKWHU50VWDWV&R$J6'0H5H6W4X3U(P,Q 0(53VWDWV6W$J&R,J,W3U$S6 N L O O V%6S%LOO%UHZ&RRN'DQFH'LYQ)$LG3HUF5LGH5XQH 6 +6ZLP336XUIDFH:D\V%ORRG:D\V%RQH0XVFOH:D\VWR WK0(53 &RQFXVVLRQ0DVWHU\%ORRG0DVWHU\ %RQH0DVWHU\WRWK50

0DUOXK

1R

1

1

GD

³

/DNHZRPDQGDQFHUEDUWHQGHU

%DUPDLGDWWKH9RGDJDUD]XQ50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J ,W3U$S6NLOOV$FUR$FW$0RYEDO $0RYOHDS %LOO&OLPE'DQFH'LSO*DPE0$6W 3HUF3/RFN 3OD\/\UH6HG6LQJ6 +6ZLP7ULFN7XPE

$QQL

1R

1

1

GD

GD

/DNHZRPDQGDQFHUEDUWHQGHU

%DUPDLGDWWKH9RGDJDUD]XQ50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J ,W3U$S6NLOOV$FUR$FW$0RYEDO $0RYOHDS $0RYVSG $SSU%LOO&OLPE&RQW'DQFH'LSO *DPE0$6 7 3HUF33NW3OD\%HOOV6HG6LQJ6 +6ZLP7XPE

*XGHOLQGD

1R

1

1

ON

³

*UDPX]I %DUGEDUWHQGHU

%DUPDLGDWWKH9RGDJDUD]XQ50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J ,W3U$S6NLOOV$FW$SSU%6S%LOO'DQFH'LSO'UXJ7DOFRKRO 3HUF33NWV36S5LGH6LQJ6ZLP 33&RQWUROOLQJ6RQJV,WHP/RUH6SLULW0DVWHU\WRWK0(53 .LVVHV,QIOXHQFHV$OOXULQJ:D\VWRWK50

*LVHOD

1R

1

1

ON

³

'XHOLVW:DUULRU)LJKWHU

6DJDWKI EDUPDLGERXQFHUDWWKH9RGDJDUD]XQ(TXDOO\SURILFLHQWZLWKDQ\ +HGJHGZHDSRQ50VWDWV&R$J6'0H5H6W 4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$FUR%LOO&OLPE-XPS0$6 7 3HUF 3OD\5HFRUGHU5LGH50DV6 +6XEG6ZLP7XPE

:DJJHRUQ

&K

<

$

EV

FS

/DNHPDQ :DUULRU)LJKWHU

5HWLUHGFXLUODV$OVRXVHVVS'%VKLHOG*ODLGJDPPRQVHH 50VWDWV&R$J6'0H5H6W4X3U(P,Q 0(53VWDWV6W$J&R,J,W3U$S6NLOOV&OLPE'UXJ7DOFRKRO *DPE0$6WUN 3HUF36S5LGH 5RZ6DLO6 +6XEG6ZLP

)UHDJD

&K

<

$

PD

FS

/DNHPDQ :DUULRU)LJKWHU

)UHTXHQWV9RGDJDUD]XQSDORI:DJJHRUQ$OVRXVHVGDFRDWHGZLWK2QGRNDPEDLQEDUILJKWV RUUDUHO\VS50VWDWV&R$J6' 0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV'UXJ7DOFRKRO *DPE3HUF 5LGH6 +6ZLP

0(535013&7$%/(

1DPH

/YO

+LWV

$7

'%

6K

*U

0HOHH2%

%UHDJOD

&K

<

$

ZK

0LVVOH2% 0RY0 1RWHV FS

:DUULRU)LJKWHUZDUULRU

/DNHPDQ'ULKWHQPHPEHU)UHDJD·VVRQ$OVRXVHVVS50VWDWV&R$J6'0H5H6W4X3U(P,Q 0(53VWDWV6W$J&R,J,W3U$S6NLOOV&OLPE0$6W 3HUF5LGH5RZ6ZLP

5DHQGRULF

1R

:

1

PJ

OE

*UDPX]%DUG

´6FDOHFODWWHUHUµ5HVLGHQWRIWKH9RGDJDUD]XQ6WDIIVSHOODGGHU2%PDLQJDXFKH%RRWVFDVWOYO6LOHQFH[GD\ 5 )OXWHFDVWVOYO6RQJ 6RXQGLQJ[GD\/XWHFDVWVOYO6OHHS6RQJ[GD\50VWDWV&R$J6'0H5H6W4X3U(P,Q 0(53VWDWV6W$J&R,J,W3U$S6NLOOV$WWXQ%6S&OLPE'DQFH3HUF3OD\/XWH3OD\)OXWH5LGH 6LQJ6 +6ZLP 333K\VLFDO(QKDQFHPHQW8QEDUULQJ:D\VWRWKDOO%DUG%DVHOLVWVWR WK0(53 'DPDJH5HVLVWDQFH 8QEDUULQJ:D\VWRWKDOO%DUG%DVHOLVWVWR WK50

'XGDQQLV

1R

:

1

PJ

PJ

6FRXW7KLHIEXUJODU

'RUZLQDGDQI UHVLGHQWRIWKH9RGDJDUD]XQ+LUNHQDQG&DPKXIVHH %HOWFDVWVOYO/HYLWDWLRQ[GD\ UQG 50VWDWV&R $J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$FUR$FW $0RYEDO $0RYOFDS $PE$SSU&OLPE&RQW'7UDS'LVJX3HUF 3/RFN33FNW5LGH50DV5RZ 6 +6ZLP7ULFN7XPE

8UGUDWK

1R

1

1

GD

GD

1XULDJ 0DJH0DJLFLDQ

5HVLGHQWRIWKH9RGDJDUD]XQ[33VWDII%RRNFDVWVOYO&KDUP.LQG[GD\50VWDWV&R$J6'0H5H6W4X3U (P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$WWXQ%6S'6S'UXJ7DOFRKRO 0DJLF50HGVOHHS 3HUF5LGH5XQH6 +6WDU*6ZLP 33 /LJKW/DZ/LYLQJ&KDQJH)LUH/DZ6SHOO:D\VWRWK0(53 'DUNQHVV 0DWWHU'LVUXSWLRQ3K\VLFDO(URVLRQ5XQH0DVWHU\WR WK50

(DUP

6/

1

1

TV

FS

/DNHPDQ:DUULRU5RJXH

*DUEDJHFROOHFWRU6XIIHUVIURPOHSURV\³SDUWLDOO\FULSSOHG$OVRXVHVON 3RQ\UXVKDQG (QFKDQWHG&DWWDLOVHH 50VWDWV&R$J 6'0F5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV%RDW3&OLPE 'UXJ7DOFRKRO 1DY3HUF3OD\7DPERXU5LGH50DV5RZ6 +6ZLP:HD:

8QKLU:DGIODG

5/

1

1

EV

GD

+DOIRUH 6FRXW7KLHIDVVDVVLQ

3HWW\FULPLQDOWKXJ*URWHVTXHWDWWRRV&RDWVEURDGVZRUGDQGGDJJHUZLWK%ODFN&ORYHU50VWDWV&R$J6'0H5H6W4X 3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$PE&OLPE&RQW'7UDS3HUF3/RFN5LGH 6.LOO6 +6XEG6ZLP7ULFN853

6FXOGLQJ

1R

1

1

ON

ON

*UDPX]EXUJODU

6WUHHWXUFKLQZDLIOHDGHURISLFNSRFNHWJDQJ0LVVLQJOHIWKDQG50VWDWV&R$J6'0H5H6W4X3U(P,Q 0(53VWDWV6W$J&R,J,W3U$S6NLOOV$PE$SSU'7UDS*DPE-XPS3HUF3/RFN33FNW6SUW 6 +6XEG6ZLP7ULFN

6SHDUZD

1R

1

1

ON

ON

/DNHZRPDQ EXUJODU

6WUHHWJDPLQHZDLI50VWDWV&R$J6G0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U $S6NLOOV$PE$SSU%UDZO&OLPE'7UDS*DPE-XPS3HUF3/RFN33FNW5RZ6SUW6 +6XEG 6ZLP7ULFN

1R

1

1

ON

ON

/DNHPDQEXUJODU

6WUHHWXUFKLQZDLI6NLQVHYHUHO\VFDUUHGIURP3ODJXH&DS55YVFROG50VWDWV&R$J6'0H5H6W4X3U(P ,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$PE$SSU&OLPE'7UDS*DPE-XPS3HUF3/RFN 33FNW5RZ6SUW6 +6ZLP7ULFN7XPE

+LOPDQ

5/

1

1

FO

³

/DNHPDQ:DUULRU5RJXH

6WUHHWXUFKLQZDLIORRNRXWIRUSLFNSRFNHWJDQJ/DPHXVHVFUXWFKHV3HW+RXQGQDPHG+XQVSRU50VWDWV&R$J6'0H5H6W 4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$FW$SSU%UDZO&DPR*DPE3HUF 3/RFN5RZ6LQJ6 +6ZLP7ULFN

$HLEHUWD

5/

1

1

ON

ON

*UDPX]I :DUULRU5RJXH

6WUHHWJDPLQHZDLI50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U $S6NLOOV$PE$SSU%UDZO&OLPE'7UDS3HUF3/RFN33FNW5RZ6 +6ZLP7ULFN

+ZDHWULQF

6/

1

1

ON

VO

/DNHPDQ :DUULRU5RJXH

6WUHHWXUFKLQZDLI50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U $S6NLOOV$PE%UDZO&OLPE'7UDS*DPE3HUF3/RFN33FNW50DV5RZ6 +6ZLP7ULFN

5(6,'(1762)&27672: )HQQULF

5/

<

1

EV

FS

/DNHPDQ FUDIWVPDQ

.U\QRI3RUWHUDVSURPLQHQW&RWVWRZYLOODJHU2%EURDGVZRUG0DJLF´ZHGJLQJµERDUGUHPRYHVDLUEXEEOHVIURPDOOFOD\NQHDGHGRQLW 50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S 6NLOOV&OLPE'LSO)RU3DLQW3HUF3RWWHU36S5LGH5RZ6LQJ6 +6ZLP7UDG

)ODQD

5/

1

1

ON

FS

/DNHZRPDQWUDGHU

.U\QRI7D\QHOZLUWDV1Rµ%DVNHWPDNHUVµ SURPLQHQW&RWVWRZ\LOODJHU3RQ\UXVKVHH 50VWDWV&R$J6'0H5H6W 4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$SSU%DVNW'LSO'LYQ)RU3HUF 3OD\5HHG3LSHV36S5LGH5RZ5XQH6 +6ZLP7UDG

0(535013&7$%/( 1DPH +XF

/YO

+LWV

$7

'%

6K

*U

0HOHH2%

6/

1

1

VS

0LVVOH2% 0RY0 1RWHV VS

:DUULRU)LJKWHUVDLORU

/DNHPDQ&RWVWRZYLOODJHU50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W 3U$S6NLOOV$PE%RDW3&OLPE)LVK1DY1603HUF5RZ6 +6ZLP

/2&$/585$/)2/. 9UDFRWK

1R

1

1

ON

ON

/DNHPDQ$QLPLVWFOHULF

*UDYHGLJJHUGHDGFROOHFWRU50VWDWV&R$J6'0H5H6W4X3U(0,Q0(53VWDWV6W$J&R,J ,W3U$S6NLOOV$WWXQ%6S'LYQ)DUP)$LG0HGKHDO 3HUF36S5LGH5RZ5XQH6WDU*6ZLP33 %ORRG:D\V3URWHFWLRQV&DOP6SLULWV6SHOO'HIHQVH'LUHFW&KDQQHOLQJWR WK0(53 3XULILFDWLRQV%ORRG/DZ&DOP6SLULWV3URWHFWLRQV &RPPXQDO:D\V/LIH0DVWHU\WR WK50

*ULVWOXQJ

1R

1

1

ON

³

$QLPLVWQHFURPDQFHU

/DNHPDQJUDYHGLJJHUGHDGFROOHFWRU9UDFRWK·VVRQ&XOWRIWKH/RQJ1LJKWPHPEHU3ROLVKHGLQIDQW·VVNXOOVSHOODGGHU50VWDWV&R$J 6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$WWXQ%6S'LYQ )DUP3HUF3OD\7DPERXU5LGH5RZ5XQH6NLQ6 +6WDU*6ZLP33&DOP6SLULWV 'LUHFW&KDQQHOLQJWR WK0(53 &RPPXQH6XPPRQ'HDGWR WK50

*Z\Q

6/

1

/

TV

VO

$QLPLVW'UXLG

*UDPX]+DOIHOI I VZLQHKHUG 4XDUWHUVWDII 2%DQGVSHOODGGHU50VWDWV&R$J6'0H5H6W4X3U(P ,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$QLP+%6S&OLPE'DQFH)RU+HUG0HGVOHHS 3HUF 3OD\),XWH6 +6ZLP7UDFN:HD: 33&DOP6SLULWV1DWXUH·V0RYHPHQW3XULILFDWLRQV3ODQW0DVWHU\$QLPDO0DVWHU\ &UHDWLRQVWR WK0(53 $QLPDO0DVWHU\'UXLG·V3HDFH'UXLGVWDII1DWXUH·V)RUPV%HDVW·V:D\V1DWXUH6XPPRQVWR WK50

$OGRUD

6/

1

$

TV

FS

*UDPX]I WUDGHU

6KHSKHUGHVV7ZRSHW6KHHS+RXQGV*LQJUDDQG+DHVHOHDFKZLWKDVWXGGHGOHDWKHUFROODU&RZEHOO+HUG50VWDWV&R$J6' 0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$QLP+$QLP7FDQLQH &OLPE'DQFH'6HQVH'LYQ)RU+HUG +RVW(VQRZ 3HUF3OD\5HFRUGHU5LGH6LQJ6 +6WDU*6ZLP

$OERLQ

6/

1

$

VS

FS

*UDPX]WUDGHU

6KHSKHUG50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S 6NLOOV$QLP7FDQLQH &OLPE'DQFH'6HQVH)RU*DPE+HUG+RVW(VQRZ 3HUF3OD\5HEHF5LGH50DV 6 +6XU*6ZLP7UDFN:HD:

7LHUDQ

6/

1

1

VV

FS

'RUZLQDGDQ WUDGHU

7LQNHU50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J6',J,W3U$S 6NLOOV%ULE&OLPE'LSO*DPE1DY33FNW3OD\5HEHF3HUF36S5LGH6 +6ZLP7UDG7ULFN

5(6,'(1762)/21'$527+ 1R 9LORULF

1

1

KD

KD

/DNHPDQ 6FRXW7KLHIPLOOHU

6PXJJOHU2%WKURZLQJD[HUHWXUQVLQUQG50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W $J&R,J,W3U$S6NLOOV$SSU&OLPE'LSO)DOV0LOO3HUF5LGH5RZ6 +6ZLP

:RHGZ\Q

1R

1

1

GD

GD

/DNHZRPDQ 0DJH$OFKHPLVW

6LVWHURI9LORULF&XOWRIWKH/RQJ1LJKWPHPEHU[33FUXFLEOH$VVRUWHGSRWLRQV50VWDWV&R$J6'0H5H6W4X3U (P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$SSU$WWXQ%6S&OLPE&RRN'LSO'LYQ)DOV 0HGVOHHS 0LOO3HUF5LGH5RZ5XQH6 +6XU*6ZLP7UDG:HD::RRG33 (VVHQFH+DQG 6SLULW0DVWHU\6SHOO:D\V(VVHQFH:D\V,OOXVLRQV/LYLQJ&KDQJHWR WK0(53 (QFKDQWLQJ:D\V(VVHQFH(PEHGGLQJ 0HQWDOLVP&KDQ,PEHGGLQJ2UJDQLF6NLOOV/LTXLG*DV6NLOOV'DUNQHVVWR WK50

0DUOR

5/

1

1

FO

GD

/DNHPDQ :DUULRU5RJXH

9LORULF·VDSSUHQWLFHWKXJ6DQGILOOHGFOXE2%QRQPDJLFDO 50VWDWV&R$J6'0H5H6W4X3U(P,Q 0(53VWDWV6W$J&R,J,W3U$S6NLOOV%UDZO&OLPE*DPE0LOO3HUF5LGH5RZ6DLO6 + 6XEG6ZLP

0DHFZLQ

5/

1

1

KD

KD

*UDPX] :DUULRU5RJXH

9LORULF·VDSSUHQWLFHWKXJ$OVRWKURZVVS%XFNVNLQWXQLF\LHOGV'%$750VWDWV&R$J6'0H5H6W4X3U (P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$SSU%UDZO&OLPE*DPE'7UDS0LOO3HUF 3/RFN33FNW5LGH50DV5RZ6 +6ZLP7UDG

8PERU

6/

1

$

ON

ON

/DNHPDQ :DUULRU5RJXH

9LORULF·VDSSUHQWLFHWKXJ50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W 3U$S6NLOOV$PE&OLPE'7UDS*DPE0LOO3HUF3/RFN5LGH5RZ6 +6XEG6ZLP

/DQQ

1R

1

1

TV

FS

*UDPX] :DUULRU5RJXH

9LORULF·VDSSUHQWLFHWKXJ50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J ,W 3U$S6NLOOV$SSU%UDZO&OLPE*DPE0LOO3HUF5LGH5RZ6 +6ZLP

0(535013&7$%/(

1DPH

/YO

+LWV

5(6,'(1762)'$/( eRGHU

$7

'%

6K

*U

0HOHH2%

3O

1

<

ED

0LVVOH2% 0RY0 1RWHV VS

'DOHPDQ :DUULRU)LJKWHU

7K\Q´.LQJµ RI'DOHDQG.UDHWKLQJPHPEHUIRUWKH.U\WKpRGFODQ8VXDOO\DFFRPSDQLHGE\WZRSHW0DUVK0DVWLIIVZLWKVSLNHGFROODUV ,QJZDDQG+XRWK6RPHWLPHVZHDUV$7'% 00 $OVRXVHVPO EVFS:XUPVSHUHDQG5RVWLOVHH +LJKVWHHOSODWHPDLO'%DQG00DQGKLJKVWHHOFKDLQPDLO'%DQG0050VWDWV&R$J6'0H5H6W 4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$GPLQ$0RYVWU $QLP7HTXLQH &DY &OLPE'LSO)DUP)RU+HUG3HUF36S5LGH 50DV6 +6WDU*6 76ZLP7DF*

6XOZ\Q

1R

1

1

VV

FS

$QLPLVW/D\+HDOHU

'DOHZRPDQVSRXVHRIeRGHU'DOHWKpRGFODQ&XOWRIWKH/RQJ1LJKWPHPEHU:DQG[3350VWDWV&R$J6'0H5H6W 4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$WWXQ%6S&OLPE&RRN'LSO'LYQ )$LG0HGVOHHS 3HUF5LGH5XQH6HG6.LOO6 +6WDU*6XEG6ZLP 336XUIDFH:D\V%ORRG:D\V3XULILFD WLRQV2UJDQ:D\V%RQH0XVFOH:D\V´%HWUD\DOVµ3URWHFWLRQVUHYHUVHG WRWK0(53 0XVFOH0DVWHU\&RQFXVVLRQ0DVWHU\%RQH0DVWHU\ %ORRG0DVWHU\1HUYH 2UJDQ0DVWHU\0LQG6XEYHUVLRQWR WK50

-LUIHOLDQ

1R

1

1

GD

GD

'DOHZRPDQ 0DJH0\VWLF

7K\QDQG.UDHWKLQJPHPEHUIRUWKH$OGXUOLQJDVFODQ VSHOODGGHUULQJ2UERI&RQIXVLQJ:D\VOYO&RQIXVLRQ[GD\ &ORDNRI,QYLVLELOLW\ /HDSLQJFDVWVHLWKHUVSHOODWOYO[GD\WRWDO 50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W $J&R,J,W3U$S6NLOOV$FW$GPLQ$WWXQ%6S&OLPE'LSO'6S'LYQ0HGVOHHS 3HUF36S 5LGH5XQF6HG6 +6ZLP 333K\VLFDO(QKDQFHPHQW6SLULW0DVWHU\,OOXVLRQV/LYLQJ&KDQJH(DUWK/DZ/LJKW/DZ:DWHU/DZ :LQG/DZ6RXQG/LJKW:D\V0(53 $WWDFN$YRLGDQFH%ULOOLDQFH'DPDJH5HVLVWDQFHDOO0\VWLF%DVH/LVWVWR WK50

0LQXLDO

1R

1

1

GD

GD

'DOHZRPDQ%DUGVDJH

'DOH·V%RFFUD.U\WKpRGFODQ[33JROGDHVWHO1R´ERRNPDUNHUµ FDVWVOYO 5HYLWDOL]H0DQXVFULSW,,[PRQWK.H\WR'DOHERFVKUHLQVHH 50 VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S 6NLOOV$WWXQ$GPLQ%6S&OLPE'LSO0HGWUDQFH 3HUF36S5LGH5XQH6FULE6LQJ6S06 +6WDU* 6ZLP33 (VVHQFH·V:D\V6SHOO:D\V&RQWUROOLQJ6RQJV6RXQG&RQWURO/RUHWR WK0(53 0LQG0DVWHU\WRWK/RUH·V0DVWHU $EVRUE.QRZOHGJH:HDYH7DOH,WHP/RUH$QDO\VLVWR WK50

9DOFULJJH

1R

1

1

GD

GD

'DOHZRPDQ 0DJH:DUORFN

.U\QDQG.UDHWKLQJPHPEHUIRUWKH6WDKQRWKpRGFODQ$PHWK\VWVFU\LQJFU\VWDO[33PXOWLSOLHU50VWDWV&R$J6'0H5H6W 4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$GPLQ$WWXQ%6S&KDQ&OLPE'LSO 'LYQ/HDG0HGVOHHS 3HUF36S5LGH5XQH6 +6WDU*6ZLP33 'HWHFWLRQ0DVWHU\&DOP6SLULWV6SHOO'HIHQVH 3URWHFWLRQV3XULILFDWLRQV'LUHFW&KDQQHOLQJWRWK0(53 $QWLFLSDWLRQV/RUH6FU\LQJ*XDUG9LVLRQVRI'RRP'RRP·V/DZ (YLO(\HWRWK50

)RUZHQ

3O

<

<

EV

VS

'DOHZRPDQ :DUULRU)LJKWHU

7K\QDQG.UDHWKLQJPHPEHUIRUWKH)pRWOLQJDVFODQ6RPHWLPHVZHDUV$7'%00 $OVRXVHV POFS6SLGHUVLONODVVR 50DV+LJKVWHHOSODWHPDLO'%DQG0050VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV 6W$J&R,J,W3U$S6NLOOV$0RYVSG $PE$QLP7HTXLQH &OLPE'LSO)DUP+HUG)RU3HUF 36S5LGH50DV 6 +6 76ZLP7XPE

5RJQDFKDU

3O

1

<

ED

VS

'DOHPDQ :DUULRU)LJKWHU

7K\QDQG.UDHWKLQJPHPEHUIRUWKH'DOHWKpRGFODQ7ZRSHW0DUVK0DVWLIIVZLWKVSLNHGFROODUV'UHQJDQG'XQQ6RPHWLPHVZHDUV$76/ '%00 $OVRXVHV PO2%VSHDU+LJKVWHHOSODWHPDLO'%0050VWDWV&R$J6'0H5H6W4X 3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$GPLQ%ULE&DY&OLPE'LSO)RU0LQH 3HUF36S5LGH6 +6 76ZLP853

%HDZ\Q

1R

1

1

VS

VS

'DOHZRPDQ 0DJH6HHU

)pRWOLQJDVFODQ2%VSHDURI7UROOVOD\LQJ1HFNODFH[3350VWDWV&R$J6'0H5H6W4X3U(P,Q 0(53VWDWV6W$J&2,J,W3U$S6NLOOV$WWXQ%6S&DY&OLPE&RRN'LSO'LYQ)RU0HGVOHHS 3HUF5LGH5XQH6HZ6LQJ6 +6WDU*6ZLP7UDFN33 $OO2SHQ(VVHQFHOLVWVH[FHSW8QEDUULQJ:D\V,WHP/RUH DOO2SHQ&KDQQHOLQJOLVWVH[FHSW1DWXUH·V/RUHWRWK0(53 &ORDNLQJ'DPDJH5HVLVWDQFH$WWDFN$YRLGDQFH%ULOOLDQFH6HOI+HDOLQJ 6SHOO5HVLVWDQFH6HQVH0DVWHU\*DV0DQLSXODWLRQ0RYHPHQW3DVW9LVLRQV0LQG9LVLRQV7UXH3HUFHSWLRQ)XWXUH9LVLRQV7UXH6LJKW *XDUGHG6LJKWWR WK50

+LOGHULQF

6/

1

1

EV

VS

VPLWK :DUULRU)LJKWHU

'DOHPDQPDVWHUMHZHOHU.U\WKpRGFODQ3HW0DUVK0DVWLIIFDOOHG*XUZDIHQ$OVRXVHVZK-HZHOHU·VKDPPHUDOORZVFDVWLQJRIOYO,PEHG,,, (VVHQFH RQDPHWDODFFHVVRU\[ZN50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J &R,J,W3U$S6NLOOV$SSU&RLQ-HZHO0LQH3HUF5LGH6PLWK6ZLP

/pRYULF

6/

1

1

ZK

ZK

'DOHPDQVPLWKILJKWHU

'DOH·VFRLQPDVWHU.U\WKpRGFODQ$OVRXVHVVS50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W $J&R,J,W3U$S6NLOOV$OFK$SSU&RLQ-HZHO3HUF5LGH6PLWK6ZLP

0(535013&7$%/( 1DPH

/YO

+LWV

$7

'%

6K

*U

0HOHH2%

*HOPLU

6/

<

1

VS

0LVVOH2% 0RY0 1RWHV VS

'DOHZRPDQ FUDIWHU

0DVWHUJODVVEORZHU$OGXUOLQJDVFODQ(OYLVKSRQWLOURG*ODVV50VWDWV&R$J6'0H5H6W4X3U(P,Q 0(53VWDWV6W$J&R,J,W3U$S6NLOOV$SSU&OLPE'LSO*ODVV 3HUF3OD\5HEHF36S5LGH 5XQH6FXOSW6 +6ZLP33* O D V V0DVWHU\WRWK50

0DUDFK

6/

<

1

EV

VS

'DOHPDQ FUDIWHU

*ODVVEORZHU$OGXUOLQJDVFODQ50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J ,W3U$S6NLOOV$SSU&OLPE'LSO*ODVV3HUF3OD\/XWH5LGH6 +6ZLP33*ODVV0DVWHU\WRWK50

3HSLQ

5/

<

$

ZK

FS

'DOHPDQ FUDIWHU

0DVWHUPDVRQ6WDKQRWKpRGFODQ6HWRIPDJLFVWHHOFKLVHOVQHYHUUXVWDQGQHYHUGXOO50VWDWV&R$J6'0H5H6W4X3U (P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$SSU&OLPE'7UDS0DVRQ3HUF3/RFN 3OD\5HFRUGHU5LGH6FXOSW6 +6WRQH6ZLP336WRQH/RUH0DQQLVK:D\VWRWK50

*XQWUDP

5/

1

1

KD

KD

/DNHPDQ FUDIWVPDQ

'DOH·V%\OWE\OWD1R´&DVNPDNHUµ $OVRXVHVVS50VWDWV&R$J6'0H5H6W4X3U(P,Q 0(53VWDWV6W$J&R,J,W3U$S6NLOOV&OLPE&RRS3HUF5LGH6LQJ6 +6ZLP7UDG:RRG

%URFNLQJ

1R

1

1

VS

VS

'DOHPDQ FUDIWVPDQ

'DOH·VEDNHU6WDKQRWKpRGFODQ0DNHVWZLGGHOEDQQRFNVVHH 50VWDWV&R$J6'0H5H6W4X3U(P ,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV%UHZ&OLPE&RRN'LSO'UXJ7DOFRKRO *DPE3HUF 5LGH6LQJ6ZLP7UDG

6WDQFKHOD

1R

1

1

GD

GD

$QLPLVW/D\+HDOHU

'DOHZRPDQPLGZLIH%URFNLQJ·VVSRXVH)pRWOLQJDVFODQ50VWDWV&R$J6'0H5H6W4X3U(P,Q$S 6NLOOV$WWXQ&OLPE&RRN'DQFH'LYQ)$LG0:LIH3HUF5LGH5XQH6ZLP333XULILFDWLRQV%ORRG:D\V %RQH0XVFOH:D\VWR WK0(53 0LGZLIHU\&RQFXVVLRQ0DVWHU\%ORRG0DVWHU\WR WK50

%DULF

1R

1

1

EV

VE

6PLWK :DUULRU)LJKWHU

'DOHPDQDUPRUHU)pRWOLQJDVFODQ$OVRXVHVZK50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W $J&R,J,W3U$S6NLOOV&OLPE/:RUN3HUF5LGH6LQJ6PLWK6 +6ZLP

75$16,(176 /RWWR1LPEOHWRHV

5/

1

1

VV

VE

6WRRU +REELW 6FRXW7KLHI

)RUWXQHVHHNHUDGYHQWXUHU$OVRWKURZVVWRQHVZLWKD2%%UDWWRNK6KDHVHH /RFNSLFNV'7UDSDQG3/RFN50VWDWV&R$J 6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV%RDW3&OLPE&RQW '7UDS )LVK*DPE3HUF3/RFN 33FNW5LGH5RZ6 +6ZLP

7KHXGHULF

1R

1

1

KD

KD

:RRGPDQ 6FRXW7KLHI

7UDYHOOLQJDFUREDWMXJJOHU6L[EDODQFHGZRRGHQFOXEV-XJ50VWDWV&R$J6'0H5H6W4X3U(P,Q 0(53VWDWV6W$J&R,J,W3U$S6NLOOV$FUR$0RYEDO $PE$SSU&OLPE'DQFH'LVJX'7UDS *DPE-XJ -XPS3HUF3/RFN33FNW5LGH6SUW6 +6XEG6ZLP7ULFN7XPE

6LJHEHUWD

1R

1

1

EV

OE

:RRGZRPDQ EXUJODU

7UDYHOOLQJDFUREDWMXJJOHU50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W 3U$S6NLOOV$FUR$0RYOHDS $0RYVSG $PE$SSU&OLPE'DQFH'LVJX'WUDS-XJ-XPS3HUF 3/RFN33FNW5LGH5RZ6SUW6 +6XEG6ZLP7ULFN7XPE33,OOXVLRQVWRWK0(53 &ORDNLQJWRWK50

7KpRGROLQGD

1R

1

1

EV

FS

eRWKUDLPI GDQFHU

7UDYHOOLQJGDQFHUPXVLFLDQWXPEOHU.LQHKLGHERRWVFDVWOYO /HDSLQJ[GD\50VWDWV&R$J6'0H5H6W4X3U (P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$FUR$FW$0RYEDO $0RYOHDS &OLPE&RQW 'DQFH'LVJX3HUF5LGH6HG6LQJ6 +6ZLP7XPE

5DPGDO

1R

1

1

VV

FS

'RUZLQDGDQ GDQFHU

7UDYHOOLQJGDQFHUPXVLFLDQWXPEOHU50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R ,J,W3U$S6NLOOV$FUR$FW$0RYEDO $0RYOHDS &OLPE&RQW'DQFH'LVJX*DPE-XJ3HUF 3OD\/XWH5LGH6HG6LQJ6 +6ZLP7ULFN7XPE33&DOP6SLULWVWRWK0(53 &ORDNLQJWRWK50

1HQODGLO

6/

1

1

0$

GD

'RUZLQDGDQI GDQFHU

7UDYHOOLQJGDQFHUPXVLFLDQWXPEOHU50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J &R,J,W3U$S6NLOOV$FUR$FW$0RYEDO &OLPE&RQW'DQFH-XPS0$VZ 3HUF3OD\5HHG3LSHV 5LGH6HG6LQJ6SUW6 +6ZLP7ULFN7XPE336SLULW0DVWHU\WRWK0(53 ,OOXVLRQVWR WK50

0RUUHJ

6/

1

1

EV

VO

*RQGRULDQ EXUJODU

7UDYHOOLQJGDQFHUPXVLFLDQWXPEOHU50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R ,J,W3U$S6NLOOV$FUR$FW$0RYVSG &OLPE'DQFH'LVJX-XJ-XPS3HUF3OD\5HFRUGHU5LGH 6LQJ6 +6ZLP7XPE

0(535013&7$%/(

1DPH *UDPEHRUW

/YO

+LWV

$7

'%

6K

*U

0HOHH2%

5/

<

1

KD

0LVVOH2% 0RY0 1RWHV OE

:RRGPDQ WUDGHU

7UDYHOOLQJSHUIRUPHUSXSSHWHHU(QFKDQWHG2DNSXSSHWFDQOHDUQDQGUHSHDWSKUDVHVPD[ZRUGVHDFK 50VWDWV&R$J6'0H 5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$FUR$FW&OLPE'DQFH *DPE3DLQW3HUF3OD\/\UH36S5LGH50DV6 +6ZLP7ULFN9HQW:RRG

5DQW

1R

1

1

VV

³

'RUZLQDGDQ 0DJH,OOXVLRQLVW

7UDYHOOLQJSHUIRUPHUSXSSHWHHU50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J ,W3U$S6NLOOV$FW$WWXQ%6S&OLPE'DQFH3HUF36S50DV5XQH6LQJ6 +6ZLP7ULFN :RRG33,OOXVLRQV(DUWK/DZ6RXQG&RQWUROWR WK0(53 /HVVHU,OOXVLRQV,OOXVLRQ0DVWHU\6RXQG0ROGLQJWR WK50

'DJREHUW

5/

<

/

EV

FS

(VWDUDYsWUDGHU

7UDYHOOLQJSHGGOHU0LOOHILRUL%URRFKRI6ZLQGOLQJ7ULFN50VWDWV&R$J6'0H5H6W4X3U(P,Q 0(53VWDWV6W$J&R,J,W3U$S6NLOOV%UDZO%ULE&OLPE'LSO*DPE1DY3HUF36S5LGH 6 +6ZLP7UDG7ULFN

5RHQGD

6/

1

1

ON

ON

:RRGZRPDQ %DUG

7UDYHOOLQJPXVLFLDQ50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U $S6NLOOV$FW&OLPE'DQFH'LSO*DPE-XJ3HUF3OD\)OXWH36S5LGH6HG6LQJ6 +6ZLP

%DOOLQ

6/

<

1

VV

FS

'RUZLQDGDQ %DUG

7UDYHOOLQJPXVLFLDQ50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U $S6NLOOV$FW$SSU&OLPE'DQFH*DPE-XJ3HUF3OD\5HEHF36S5LGH6LQJ6 +6ZLP

9HQQRODQGXD

6/

<

1

VS

MD

:DUULRU)LJKWHUEDUEDULDQ

+LOOZRPDQPHUFHQDU\DGYHQWXUHU$OVRILJKWVZLWKVV'%JROGQHFNWRUF'%/RVUDQGLUKLGHDUPRU50VWDWV&R$J6'0H 5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$PE&DPR&OLPE'6HQVH)RU )UHQ+RVW(PWV -XPS3HUF36S6LJ6 +6ZLP7UDFN

&KLOSHULF

&K

<

/

EV

VE

eRWKUDLP :DUULRU)LJKWHU

0HUFHQDU\DGYHQWXUHU$OVRXVHVPO2%EURDGVZRUG50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53 VWDWV6W$J&R,J,W3U$S6NLOOV$QLP7HTXLQH %UDZO&OLPE*DPE3HUF36S5LGH6 +6ZLP

&KDULEHUW

&K

<

/

EV

VE

eRWKUDLP :DUULRU)LJKWHU

0HUFHQDU\DGYHQWXUHU$OVRXVHVPO2%EURDGVZRUG'%VKLHOG50VWDWV&R$J6'0H5H6W4X3U(P ,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$QLP7HTXLQH &OLPE*DPE3HUF5LGH6 +6XEG 6ZLP

5RPXDOG

5/

<

1

KD

OE

*UDPX] :DUULRU)LJKWHU

$GYHQWXUHUWUDYHOOHU50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W 3U$S6NLOOV%UDZO&OLPE'UXJ7DOFRKRO )$LG*DPE3HUF5LGH6 +6ZLP

(EURLQ

&K

<

/

EV

FS

(VWDUDYH :DUULRU)LJKWHU

0HUFHQDU\DGYHQWXUHU$OVRILJKWVZLWKVS50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W $J&R,J,W3U$S6NLOOV&OLPE'UXJ7DOFRKRO *DPE0$VW 3HUF5LGH6 +6 76ZLP

:22'(/9(65(6,'(1762) &(/(%$1121 2KWDU 3O <

1

EV

OE

6LQGD :DUULRU)LJKWHU

0DVWHURI&HOHEDQQRQ$OVRXVHVONDQGPO'%VKLHOG6WHHOEUHDVWSODWHZHDUVDV$750VWDWV&R$J6'0H5H 6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$FW$GPLQ$PE$SSU$WWXQ %RDW3&OLPE'DQFH'LSO'LYH'LYQ)$LG)LVK)RU/DZ/HDG1DY3HUF36S5LGH50DV5RZ 6DLO6LJ6LQJ6 +6WDU*6 76XEG6ZLP7DF*7UDFN7UDG:HD:33 (VVHQFH3HUFHSWLRQVWR WK0(53DQG50

&DPWKDOLRQ

3O

<

1

EV

OE

6LOYDQ (OI:DUULRU)LJKWHU

6HFRQGLQFRPPDQGRI&HOHEDQQRQ$OVRXVHVON 2%ORQJNQLIH6WRQHRI:DWHUZDONLQJFRQWLQXDOOYOVSHOO '%VKLHOG6WHHO EUHDVWSODWHZHDUVDV$7+ROGVKDOIRI'LQG\OILQVHH 50VWDWV&R$J6'0H5H6W4X3U(P,Q 0(53VWDWV6W$J&R,J,W3U$S6NLOOV$FUR$GPLQ$PE%RDW3&OLPE'DQFH'LSO'LYH)LVK )RU/DZ1DY3HUF3OD\/XWH36S5LGH50DV5RZ6DLO6LJ6LQJ6 +6WDU*6 76XEG6ZLP 7UDFN7UDG

&HOHTXDU

5/

1

1

VS

OE

:DUULRU5RJXHERXQW\KXQWHU

6LOYDQ(OI:RRGODQG:DUGHUDQG&DPWKDOLRQ·VVRQ'%OHDWKHUEUHDVWSODWH2%ORQJERZ50VWDWV&R$J6'0H5H 6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$FUR$PE&DPR&OLPE'6HQVH )RU-XPS3HUF3OD\)OXWH5LGH50DV6LJ6 +6 76ZLP7UDFN7UDS%7XPE:HD: 33 'HWHFWLRQ0DVWHU\WRWK0(53 /RFDWLQJ:D\VWRWK50

%UDQGLU

&K

<

/

EV

OE

:DUULRU)LJKWHUEDUEDULDQ

6LOYDQ(OI&XLYHWSHOORUGVWDWLRQHGQHDU&HOHEDQQRQ$OVRXVHVON2%ORQJERZ'%FKDLQVKLUW50VWDWV&R$J6'0H 5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$FUR$PE&OLPE)RU-XPS 1DY3HUF3OD\/XWH5LGH50DV6LJ6LQJ6 +6 76ZLP7UDFN7UDS%33 1DWXUH·V0RYHPHQWWR WK0(53 $WWDFN$YRLGDQFHWR WK50

0(535013&7$%/( 1DPH 7DWKDULHO

/YO

+LWV

$7

'%

6K

*U

0HOHH2%

&K

<

/

EV

0LVVOH2% 0RY0 1RWHV OE

:DUULRU)LJKWHUEDUEDULDQ

6LOYDQ(OII &XLYHWSHOPHPEHU$OVRXVHVONUHEHF2%ORQJERZ50VWDWV&R$J6'0H5H6W4X3U (P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$FUR$PE&OLPE)RU-XPS1DY3HUF 3OD\5HEHF 5LGH6LJ6LQJ6 +6 76ZLP7UDFN331DWXUH·V/RUHWRWK0(53 &ORDNLQJWRWK50

*DOHULQ

&K

<

/

EV

OE

:DUULRU)LJKWHUEDUEDULDQ

6LOYDQ(OI&XLYHWSHOPHPEHU$OVRXVHVON2%ORQJERZ7RUFK´EXPVµXSRQFRPPDQGZLWKDOYO/LJKWVSHOO[GD\ KUPD[GXUDWLRQ HDFKWLPH 50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S 6NLOOV$PE&OLPE)RU-XPS1DY3HUF5LGH6HG6LJ6LQJ6 +6ZLP7UDFN

*LOUDHQ

&K

<

/

EV

OE

:DUULRU)LJKWHUEDUEDULDQ

6LOYDQ(OI&XLYHWSHOPHPEHU$OVRXVHVONVSHOODGGHUEURRFK2%ORQJERZ50VWDWV&R$J6'0H5H6W4X 3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$FUR$PE&OLPE)RU-XPS1DY3HUF 5LGH50DV6LJ6LQJ6 +6ZLP7UDFN336XUIDFH:D\VWRWK0(53 6HOI+HDOLQJWRWK50

%HOLRQ

&K

<

/

EV

OE

:DUULRU)LJKWHUEDUEDULDQ

6LOYDQ(OI&XLYHWSHOPHPEHU$OVRXVHVON2%ORQJERZ%RRWVRI3DWKILQGLQJOYO UDQJH[GD\ 50VWDWV&R$J6' 0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$PE&OLPE)$LG)RU -XPS1DY3HUF5LGH6LJ6LQJ6 +6ZLP7UDFN7UDS%

*ZDHGXQ

5/

<

/

EV

OE

:DUULRU)LJKWHUEDUEDULDQ

6LOYDQ(OII &XLYHWSHOPHPEHU$OVRXVHVON%ORQJERZ50VWDWV&R$J6'0H5H6W4X3U(P,Q 0(53VWDWV6W$J&R,J,W3U$S6NLOOV$PE&OLPE)RU-XPS1DY3HUF5LGH6LJ6LQJ6 + 6ZLP7UDFN

7LULHO

5/

<

/

EV

OE

:DUULRU)LJKWHUEDUEDULDQ

6LOYDQ(OII &XLYHWSHOPHPEHU$OVRXVHVON2%ORQJERZ50VWDWV&R$J6'0H5H6W4X3U(P,Q 0(53VWDWV6W$J&R,J,W3U$S6NLOOV$PE&OLPE)RU-XPS1DY3HUF5LGH6LJ6LQJ6 + 6ZLP7UDFN

&DOHQGLU

5/

<

/

EV

OE

:DUULRU)LJKWHUEDUEDULDQ

6LOYDQ(OI&XLYHWSHOPHPEHU$OVRXVHVON2%ORQJERZ50VWDWV&R$J6'0H5H6W4X3U(P,Q 0(53VWDWV6W$J&R,J,W3U$S6NLOOV$PE&OLPE)RU-XPS1DY3HUF5LGH6LJ6LQJ6 + 6ZLP7UDFN

%UHWKLOZHQ

5/

<

/

EV

OE

:DUULRU)LJKWHUEDUEDULDQ

6LOYDQ(OII &XLYHWSHOPHPEHU$OVRXVHVON%ORQJERZ50VWDWV&R$J6'0H5H6W4X3U(P,Q 0(53VWDWV6W$J&R,J,W3U$S6NLOOV$PE&OLPE)RU-XPS1DY3HUF5LGH6LJ6LQJ6 + 6ZLP7UDFN336RXQG/LJKW:D\VWRWK0(53 %ULOOLDQFHWRWK50

(OHQZH

5/

<

1

VS

OE

5DQJHU

6LOYDQ(OII :RRGODQG:DUGHU/HDIEURRFK[33PXOWLSOLHU'%VKLHOG(OYHQFORDN6 +50VWDWV&R$J6'0H5H 6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$PE&DPR&OLPE'DQFH)RU 3HUF5LGH50DV6LQJ6 + 6ZLP7UDFN330RYLQJ:D\V1DWXUH·V*XLVHVWRWK0(53DQG50

)XLQXU

5/

<

1

VS

OE

5DQJHU

6LOYDQ(OI:RRGODQG:DUGHU/HDIEURRFKVSHOODGGHU'%VKLHOG6SHDUFDVWVHHULHJUHHQ/ L J K WOYO[GD\ DQG&ROG5HVLVWDQFH OYO[GD\ 50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U $S6NLOOV$FUR$PE$QLP7DYLDQ &OLPE)RU3HUF3OD\+DUS5LGH50DV6 +6ZLP7UDFN 7UDS%330RYLQJ:D\V3DWK0DVWHU\WR WK0(53DQG50

5(*,21$/ 5(6,'(176 7LQWD

5/

<

1

WK

FS

$VGULDJWUDGHU

+RUVHWUDGHU$OVRXVHVPO 2%XVULHYDVWKRUPO 6QDNHVNLQJLUGOH5LGHDQGFRQWURO+RUVHV50VWDWV&R$J6'0H 5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$0RYEDO $QLP7HTXLQH $SSU +HUG-XPS3HUF5LGH 50DV6ZLP7UDGH

0DKWR

5/

<

1

WK

FS

:DUULRU)LJKWHUEDUEDULDQ

$VGULDJDVVLVWDQWKRUVHWUDGHUDQG7LQWD·VHOGHVWVRQ$OVRXVHVPO50VWDWV&R$J6'0H5H6W4X3U(P,Q 0(53VWDWV6W$J&R,J,W3U$S6NLOOV$0RYEDO $QLP+$QLP7HTXLQH +HUG-XPS3HUF 5LGH50DV6ZLP

+UpRZDOGD

6/

<

$

VS

FS

:DUULRU5RJXH IDUPHU

/DNHZRPDQUHIXJHHOHDGHU$OVRXVHVEV2%VSHDU'%VKLHOG50VWDWV&R$J6'0H5H6W4X3U(P ,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV&OLPE&RRN)DUP)$LG)RU+HUG-XPS0:LIH 3HUF36S5LGH5RZ6HZ6SLQ6 +6ZLP:HDYH

9RODI

6/

<

1

KD

FS

:DUULRU)LJKWHUEDUEDULDQ

/DNHPDQ+UpRZDOGD·V\RXQJVRQ$OVRXVHVVS50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W $J&R,J,W3U$S6NLOOV$PE&DPR&OLPE)DUP)RU+HUG+RVW(VQRZ -XPS3HUF36S5LGH 6 +6ZLP7UDFN

0(535013&7$%/(

1DPH

/YO

+LWV

$7

'%

6K

*U

0HOHH2%

6NHVVD

5/

1

<

EU

0LVVOH2% 0RY0 1RWHV UR

:DUULRU)LJKWHUZLWFK

*LDQWHVV7UROO7ZRKHDGVVHSDUDWHVWDWVDQGVNLOOVIRUOHIW´*LDQWLVKµKHDGULJKW´7UROOLVKµKHDGZKHQDSSOLFDEOH /DUJHFUHDWXUHFULWLFDO %ORZVGHDO[GDPDJH$OVRXVHV IU\LQJSDQDQG /&O %URRPDQGIU\LQJSDQVWULNHDV/%D5RFNVWULNHVDV/&UXVHVKRUWERZUDQJH %DGUDQW +HFJDWDDQG%HNVPDVHH 50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV 6W$J&R,J,W3U$S6NLOOV%6S&OLPE&RRN)RU3HUFLIERWKDZDNH 6NLQ 6SLQ:HDYH 33OHIWKHDG )LUH/DZWRWK6SHOO:D\V,OOXVLRQV(DUWK/DZWRWK0(53 &DQGOH0DJLF(DUWK0DVWHU\ *ODPRXUV3RWLRQ0DJLFWR WK50

%URJGLQ

3O

<

/

VS

VE

:DUULRU)LJKWHUEDUEDULDQ

*UDPX]7K\QIRUWKH)ULWKDVFODQ$UPULQJ'%2%VSHDU+RUQPDJLFDOO\FRPSHOVDOOLHVWRDLGEORZHUOYO PLOHUDQJH %URJGLQEUHJHQVHH 50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J ,W3U$S6NLOOV$0RYEDO $PE$QLP7HTXLQH &OLPE'LSO)DUP)$LG)RU+HUG+RVW(VQRZ -XPS /HDG3HUF36S5LGH50DV6 +6 76ZLP7UDFN

'LHUDJOLU

1R

<

1

ZK

FS

eRWKUDLP :DUULRU5RJXH

%ULJDQGOHDGHU'%VKLHOG%RZRI0DQ6OD\LQJ+HOP55YV(VVHQFH)HDUDQG0HQWDOLVP$OVRILJKWVZLWKEV50VWDWV&R$J 6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$QLP7HTXLQH $PE $SSU&OLPE'7UDS)RU*DPE-XPS/HDG3HUF3/RFN5LGH50DV6LJ6 +6 76XEG 6ZLP7UDFN

8WODVK

&K

<

1

EV

FS

*UDPX]:DUULRU5RJXH

'LHUDJOLU·VILUVWOLHXWHQDQW&RDWVDUURZVZLWK$VKJXUDVK0DJLF.LQHKRUQERZ2%%XFNVNLQVKLUWUHLQIRUFHGZLWK .LQHKRUQSURWHFWVDV$7 ZHDUVDV$750VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S 6NLOOV$PE$SSU&DPR&OLPE'6HQVH-XPS3HUF5LGH6LJ6 +6 76XEG6ZLP853

.RXPLVV

5/

<

/

VF

VE

:DUULRU)LJKWHUEDVKNDU

6DJDWKDND´5RV%RPµ'LHUDJOLU·VVHFRQGOLHXWHQDQW$ERXVHVGD FRDWHGZLWK$QJXVDLZHYHQRP5RV1ROXVDYVHH 2%VFLPLWDU '%VKLHOG50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U $S6NLOOV$QLP7HTXLQH &OLPE)UHQ*DPE-XPS3HUF5LGH50DV6 +6ZLP

+DHG

&K

<

$

VV

GD

*UDPX]:DUULRU5RJXH

&XOWRIWKH/RQJ1LJKWPHPEHUDQG0DHJKLULPDVVDVVLQHQYR\$OVRILJKWVZLWKFS3HW5DYHQ.U\GD&RDWVVVZLWK2QGRNDPED'%VKLHOG 2%GDJJHUUHWXUQVLQUQG+HOPFDVWVOYO)DFDGHV[GD\%RRWVRI+RUVHPDVWHU\5LGHDQGFRQWURO 5LQJVWRUHVVSHOOXSWR WKOYO50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6U$J&R,J,Q3U$S 6NLOOV$FW$PE$QLP7HTXLQH &OLPE'LSO'7UDS'LVJX)RU3HUF3/RFN5LGH 50DV6.LOO6 + 6 76XEG6ZLP7UDFN7XPE853 333K\VLFDO(QKDQFHPHQWWRWK0(53 'DPDJH5HVLVWDQFHWRWK50

1DUPLUH

1R

1

1

EV

OE

6LOYDQ(OII $QLPLVW+HDOHU

6ODYHRI+DHGGDXJKWHURI&DPWKDOLRQ8QDUPHG:HDUVKDOIRI'LQG\OILQVHH 50VWDWV&R$J6'0H5H6W4X 3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV%6S&RRN'DQFH(PEURL)$LG)RU 0HGKHDO 3HUF5LGH5XQH6LQJ6 +6WDU*6ZLP:HD:336XUIDFH:D\V%ORRG:D\V %RQH0XVFOH:D\VWRWK0(53 6XUIDFH:D\V%ORRG:D\V7UDQVIHUULQJ:D\VWR WK50

+XLO RI$PR]

&K

<

<

VS

VE

6DJDWK :DUULRU)LJKWHU

:DUORUGRI/DUKXLO$OVRXVHVMDVVDQGGD'%IXOOVKLHOG00FKDLQDUPRUVSHDURI0DQVOD\LQJ50VWDWV&R$J 6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$PE$QLP7HTXLQH %UDZO&OLPE'UXJ7DOFRKRO )RU)UHQ+RVW(KLOOV -XPS/HDG0HGKHDO 3HUF36S5LGH50DV6 + 6 76ZLP7UDFN

-\DJDQRWK

&K

<

<

KD

VE

6DJDWK :DUULRU)LJKWHU

5DLGHUZDUORUGRI1DQ&DUQHQ$OVRXVHVGDVKLHOG&RDWVDUURZVZLWK$VKJXUDVK50VWDWV&R$J6'0H5H6W4X 3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$PE$QLP7HTXLQH &OLPE'6HQVH'LVDUP )$LG)RU+RVW(KLOOV -XPS/HDG3HUF5LGH50DV6 +6 76ZLP7UDFN

0RJVKL

&K

1

<

VF

QW

8UXN :DUULRU)LJKWHU

/DU]RJXKRWKFKLHI$PELGH[WHURXV³ILJKWVWZRKDQGHGZLWKVFLPLWDUDQGQHW$OVRXVHVVEDQGVS.XG]DRQJVHH 2%VFLPLWDU '%FKDLQKDXEHUN50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W 3U$S6NLOOV$PE$QLP7OXSLQH %UDZO&DY&OLPE'5XQ'UXJ7-HJJD +RVW(VQRZ 0LQH3HUF5LGH 6 +6 76ZLP7:&

8NRJWKH/DPH

&K

<

<

EV

VE

8UXN :DUULRU)LJKWHU

$VKDUDJFKLHI$OVRILJKWVZLWK VF VS GD2%EURDGVZRUG'%ZDOOVKLHOG50VWDWV&R$J6'0H5H6U 4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$PE$QLP7OXSLQH %UDZO&DY &OLPE'5XQ*DPE+RVW(VQRZ 0LQH3HUF36S5LGH6 +6 76ZLP

9DUFKD]

QR

&K

<

1

OV

VE

/RJDWK :DUULRU)LJKWHU

&DSWDLQRI$QJPDUHDQZDJRQWUDLQJXDUG$OVRILJKWVZLWKVSDQGGD2%VWHHOORQJVZRUGDQGGDJJHUQRQPDJLF 2%VKRUWERZQRQ PDJLF '%VKLHOG50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,Q 3U$S6NLOOV$PE$QLP7HTXLQH $SSU%UDZO&OLPE'LSO'6HQVH)RU*DPE+RVW(VQRZ /HDG3HUF 5HY65LGH50DV6 +6 76ZLP7UDG

0(535013&7$%/( 1DPH +RIGLQJ

/YO

+LWV

$7

'%

6K

*U

0HOHH2%

&K

<

1

EV

0LVVOH2% 0RY0 1RWHV FS

*UDPX] :DUULRU5RJXH

$ND´2GRULFµ%DQGLWOHDGHU2%.LQHKRUQERZQRQPDJLF 2%EURDGVZRUG500DWV&R$J6'0H5H6W4X 3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$PE$SSU%UDZO&DPR&OLPE'6HQVH)DUP )RU3HUF5LGH5RZ6 +6 76ZLP7UDG

*LO\Q

5/

<

1

EV

FS

'RUZLQDGDQ I 6FRXW7KLHI

%DQGLW+RIGLQJ·VORYHU&RDWVDUURZVDQGVVZLWK$VKJXUDVK.LQHKRUQERZQRQPDJLF $UURZVRI+RUVHVOD\LQJ2%HDFK QRWLQFOXGHGDERYH 50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U $S6NLOOV$PE$SSU%RDW3&OLPE'7UDS)$LG*DPE1DY3HUF3/RFN5LGH50DV5RZ6 + 6XEG6ZLP853

'UDIHQG

5/

<

1

EV

OE

*UDPX]5DQJHU

%DQGLW6KLHOGRI:ROIWXUQLQJ:ROYHVUHVLVWOYOVSHOORUIOHH 7\QGHUER[VHH 50VWDWV&R$J6'0H5H6W4X 3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$PE&DPR&OLPE'6HQVH+HUG3HUF5LGH 5RZ6 +6ZLP7UDFN 333DWK0DVWHU\1DWXUH·V*XLVHVWR WK0(53DQG50!

5DHGZ\Q

5/

1

1

VV

FS

/DNHZRPDQ :DUULRU5RJXH

%DQGLWGHFR\'%GHHUVNLQYHVWSURWHFWVDV$76FDEEDUGRI+HDOWKFDVWVOYO&XW5HSDLU[GD\ ZKHQODLGXSRQDQRSHQZRXQG 50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$FW $PE$SSU&DPR&OLPE*DPE-XPS3HUF5LGH5RZ6 +6XEG6ZLP

'DULDQ

6/

<

1

EV

OE

*UDPX] 6FRXW7KLHI

%DQGLW/RFNSLFNV3/RFNDQG'7UDS50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J &R,J,W3U$S6NLOOV$PE&DPR&OLPE'6HQVH'7UDS 'UXJ7DOFRKRO )DUP)RU*DPE3HUF 3/RFN 5LGH5RZ6 +6XEG6ZLP

*UHWWD

6/

<

$

EV

OE

:DUULRU5RJXH

*UDPX]eRWKUDLPI EDQGLW'DULDQ·VVSRXVH50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W $J&R,J,W3U$S6NLOOV$PE&DPR&OLPE)DUP)$LG)RU+LGH3HUF5LGH50DV5RZ 6 +6XEG6ZLP

5RI

5/

<

1

VF

FS

'RUZLQDGDQ :DUULRU)LJKWHU

%DQGLW*LO\Q·V\RXQJHUEURWKHU50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J ,W3U$S6NLOOV$PE%RDW3%UDZO&DPR&OLPE3HUF5LGH5RZ6 +6ZLP

0$67(50,/,7$5<7$%/( 1DPH (6*$527+ &XLUODV

/YO

+LWV

$7

'%

6K

*U

0HOHH2%

0LVVOH2%

00

&K

<

$

EV

VS

1RWHV /DNHIRON :DUULRUV)LJKWHUV

(OLWH/DNHWRZQJXDUGPHPEHUVGHWDLOHGLQGLYLGXDOO\LQ 0RXQWHGRXWVLGHWRZQ$OVRXVHFS50VWDWVDYHUDJH &R$J6' 0H5H6W4X3U(P,Q0(53VWDWVDYHUDJH 6W$J&R,J,W3U$S7\SLFDOVNLOOV$SSU%RDW3 &OLPE1DY3HUF5LGH5RZ6DLO6 76ZLPSOXVWZRRUWKUHHRIWKHIROORZLQJ$0RYEDODQFH %UDZO&UDIW'LYH 'UXJ7DOFRKRO )$LG*DPE,QWJ36S50DV6 +6WDU*:HD:

'ULKWHQ

&K

<

$

EV

FS

/DNHIRON :DUULRUV)LJKWHUV

6WDQGLQJ/DNHWRZQJXDUGPHPEHUVGHWDLOHGLQGLYLGXDOO\LQ $OVRXVHVS50VWDWVDYHUDJH &R$J6'0H5H6W 4X3U(P,Q0(53VWDWVDYHUDJH 6W$J&R,J,W3U$S7\SLFDOVNLOOV&OLPE3HUF5LGH5RZ 6DLO6 76ZLPSOXVRQHRUWZRRIWKHIROORZLQJ$0RYEDODQFH %RDW3%UDZO&UDIW'LYH'UXJ7DOFRKRO )$LG *DPE,QWJ1DY36S50DV6 +6WDU*:HD:

)DHUG

5/

<

1

EV

VS

/DNHIRON :DUULRUV)LJKWHUV

/DNHWRZQOHY\$OVRXVHERWKFSDQGHLWKHUEVRUKD8VHFUDIWVIRONDQGILVKHUIRONVWDWLVWLFVDQGVNLOOV

&UDIWVIRON

6/

1

1

ON

FS

/DNHIRON FUDIWVSHRSOH

([SHULHQFHGDUWLVDQV0DQ\XVHEVRUKDDVWKHLUPHOHHZHDSRQ$OVRXVHVS50VWDWVDYHUDJH &R$J6'0H5H6W4X 3U(P,Q0(53VWDWVDYHUDJH 6W$J&R,J,W3U$S7\SLFDOVNLOOV$SSU&OLPE&UDIW&UDIW3HUF 5LGH5RZ6ZLP7UDGSOXVIRXURUILYHRIWKHIROORZLQJ$QLP7%UDZO&UDIW'DQFH'LYQ'UXJ7DOFRKRO )$LG )RU*DPE0:LIH3OD\,QVW36S6LQJ6 +

&UDIWVIRON

1R

1

1

ON

FS

/DNHIRON FUDIWVSHRSOH

$UWLVDQV0DQ\XVHEVRUKDDVWKHLUPHOHHZHDSRQ$OVRXVHVS50VWDWVDYHUDJH &R$J6'0H5H6W4X3U(P ,Q0(53VWDWVDYHUDJH 6W$J&R,J,W3U$S7\SLFDOVNLOOV$SSU&OLPE&UDIW&UDIW3HUF5LGH5RZ 6ZLP7UDGSOXVIRXURUILYHRIWKHIROORZLQJ$QLP7%UDZO&UDIW'DQFH'LYQ'UXJ7DOFRKRO )$LG)RU*DPE 0:LIH3OD\,QVW36S6LQJ6 +

0$67(50,/,7$5<7$%/(

1DPH &UDIWVIRON

/YO

+LWV

$7

'%

6K

*U

0HOHH2%

0LVVOH2%

00

1R

1

1

ON

FS

1RWHV /DNHIRON FUDIWVSHRSOH

$SSUHQWLFHDUWLVDQV0DQ\XVHEVRUKDDVWKHLUPHOHHZHDSRQ$OVRXVHVS50VWDWVDYHUDJH &R$J6'0H5H6W4X 3U(P,Q0(53VWDWVDYHUDJH 6W$J&R,J,W3U$S7\SLFDOVNLOOV$SSU&OLPE&UDIW&UDIW3HUF 5LGH5RZ6ZLP7UDGSOXVWZRRURIWKHIROORZLQJ$QLP7%UDZO&UDIW'DQFH'LYQ'UXJ7DOFRKRO )$LG)RU *DPE3OD\,QVW36S6LQJ6 +

)LVKHUIRON

5/

<

1

VS

VS

:DUULRUV)LJKWHUVVDLORUV

/DNHIRONH[SHULHQFHG9LVFHUDVPHPEHUV$OVRXVHEVRUON50VWDWVDYHUDJH &R$J6'0H5H6W4X3U(P,Q 0(53VWDWVDYHUDJH 6W$J&R,J,W3U$S7\SLFDOVNLOOV&OLPE)LVK3HUF5LGH50DV5RZ6DLO 6ZLPSOXVWKUHHRUIRXURIWKHIROORZLQJ$0RYEDO %RDW3%UDZO'LYH*DPE1DY1606LQJ6WDU*:HD:

)LVKHUIRON

1R

<

1

VS

VS

:DUULRUV)LJKWHUVVDLORUV

/DNHIRONYLVFHUDVPHPEHUV$OVRXVHEVRUON50VWDWVDYHUDJH &R$J6'0H5H6W4X3U(P,Q 0(53VWDWVDYHUDJH 6W$J&R,J,W3U$S7\SLFDOVNLOOV&OLPE)LVK3HUF5LGH50DV5RZ6DLO 6ZLPSOXVWKUHHRUIRXURIWKHIROORZLQJ$0RYEDO %RDW3%UDZO'LYH*DPE1DY1606LQJ6WDU*:HD:

6PXJJOHUV

5/

1

1

KD

KD

/DNHIRON :DUULRUV5RJXHV

%RHGE\OJDVDQGVPXJJOHUOHDGHUV7KUHHRIWKHVHOHDGHUV.\QRGHQ9RJLU+LOGHJULSD DUHGHWDLOHGLQ50VWDWVDYHUDJH &R$J6W 0H5H6W4X3U(P,Q0(53VWDWVDYHUDJH 6W$J&R,J,W3U$S7\SLFDOVNLOOV$SSU%RDW3 %ULE&OLPE'UXJ7DOFRKRO )DOV*DPE1DY3HUF50DV5RZ6DLO6KLS:6 +6ZLPSOXVWKUHHRUIRXURI WKHIROORZLQJ$0RYEDO $PE%UDZO'7UDS'LYH3/RFN5LGH6WDU*:HD:0$6W6 7 6XEG

6PXJJOHUV

6/

1

1

KD

KD

/DNHIRON :DUULRUV5RJXHV

([SHULHQFHG%RHGE\OJDVPHPEHUV50VWDWVDYHUDJH &R$J6'0H5H6W4X3U(P,Q0(53VWDWVDYHUDJH 6W$J&R,J,W3U$S7\SLFDOVNLOOV%RDW3%UDZO&OLPE'UXJ7DOFRKRO *DPE0$6 1DY3HUF 50DV5RZ6DLO6KLS:6 +6XEG6ZLPSOXVRQHRUWZRRIWKHIROORZLQJ$0RYEDODQFH $PE$SSU'7UDS 'LYH1603/RFN5LGH6WDU*:HD:

6PXJJOHUV

6/

1

1

KD

KD

/DNHIRON :DUULRUV5RJXHV

%RHGE\OJDVPHPEHUV50VWDWVDYHUDJH &R$J6'0H5H6W4X3U(P,Q0(53VWDWVDYHUDJH 6W$J &R,J,W3U$S7\SLFDOVNLOOV%RDW3%UDZO&OLPE'UXJ7DOFRKRO *DPE0$6W 3HUF50DV+5RZ 6DLO6KLS:6 +6XEG6ZLPSOXVWZRRUWKUHHRIWKHIROORZLQJ$0RYEDODQFH $PE$SSU'7UDS'LYH1DY 1603/RFN5LGH6WDU*:HD:

%RXQFHUV5XIILDQV

5/

1

1

ON

ON

/DNHIRON :DUULRUV5RJXHV

7DYHUQJDPEOLQJKDOOWRXJKV0DQ\XVHEVKDVSFSLQVWHDG50VWDWVDYHUDJH &R$J6'0H5H6W4X3U(P,Q 0(53VWDWVDYHUDJH 6W$J&R,J,W3U$S7\SLFDOVNLOOV&OLPE'UXJ7DOFRKRO *DPE0$6W6 7 3HUF 5LGH6 +6XEG6ZLPSOXVWKUHHRUIRXURIWKHIROORZLQJ&UDIW'7UDS'LVDUP)$LG-XPS3/RFN33FNW36S 5RZ6DLO

5LYHU5DWV

6/

<

1

EV

FO

:DUULRUV5RJXHVVDLORUV

0L[HGVDLORUVRIULYHUFUDIW'RUZLQULPDQG1RUWKURQV6RPHXVHVFONVSFORUKDDVDPHOHHZHDSRQ50VWDWVDYHUDJH &R$J6' 0H5H6W4X3U(P,Q0(53VWDWVDYHUDJH 6W$J&R,J,W3U$S7\SLFDOVNLOOV%RDW3&OLPE *DPE1DY3HUF50DV5RZ6DLO6LQJ6ZLP:HD:$0RYEDO %UDZO'LYH)LVK0$6W6 7 1603OD\,QVW5LGH6 +6WDU*6XEG:RRG

'$/( &XLUODV

&K

<

<

EV

FS

'DOHIRON :DUULRUV)LJKWHUV

'DOH·VFODQHOLWH$OVRXVHPO2%.LQHERZ50VWDWVDYHUDJH &R$J6'0H5H6W4X3U(P,Q 0(53VWDWVDYHUDJH 6W$J&R,J,W3U$S7\SLFDOVNLOOV$QLP7HTXLQH &OLPE)DUP+HUG3HUF5LGH 6 76ZLPSOXVRQHRUWZRRIWKHIROORZLQJ$PE%UDZO&UDIW'UXJ7DOFRKRO )RU*DPE36S50DV6 + 6WDU*

'ULKWHQ

&K

<

/

EV

FS

'DOHIRON :DUULRUV)LJKWHUV

'DOH·VFODQZDUULRUV$OVRXVHVS50VWDWVDYHUDJH &R$J6'0H5H6W4X3U(P,Q0(53V W D W VDYHUDJH 6W$J&R,J,W3U$S7\SLFDOVNLOOV$QLP7HTXLQH &OLPE)DUP+HUG3HUF5LGH6 76ZLP SOXVRQHRUWZRRIWKHIROORZLQJ$PE%UDZO&UDIW'UXJ7DOFRKRO )RU*DPE36S50DV6 +6WDU*

)DHUG

5/

<

/

EV

FS

'DOHIRON :DUULRUV)LJKWHUV

EV

OE

:RRGHOI :DUULRUV)LJKWHUV

'DOH·VFODQOHY\$OVRXVHVS 8VHUHIXJHHIDUPHUVWDWLVWLFVDQGVNLOOV

&(/(%$1121 7LUGXLQ /RUGV VDLORUV

&K

<

1

(OLWH5LYHU*XDUGFRPPDQGHUV6LOYDQVRPH1DQGRDQG6LQGD(OYHV50VWDWVDYHUDJH &R$J6'0H5H6W4X3U,Q (P0(53VWDWVDYHUDJH 6W$J&R,J,W3U$S7\SLFDOVNLOOV$PE$SSU%RDW3&OLPE)RU,QWJ1DY 3HUF5RZ6LJ6 +6 76ZLPSOXVWKUHHRUIRXURIWKHIROORZLQJ$0RYEDO 'DQFH'LYH)$LG)LVK 3OD\,QVW50DV6LQJ6WDU*7DF*7UDG:HD:

0$67(50,/,7$5<7$%/( 1DPH 7LUGXLQ

/YO

+LWV

$7

'%

6K

*U

0HOHH2%

0LVVOH2%

00

&K

<

1

EV

OE

1RWHV :DUULRUV)LJKWHUVVDLORUV

:RRGHOIHOLWH5LYHU*XDUGZDUULRUV6LOYDQVRPH1DQGRDQG6LQGD(OYHV50VWDWVDYHUDJH &R$J6'0H5H6W4X3U ,Q(P0(53VWDWVDYHUDJH 6W$J6',J,W3U$S7\SLFDOVNLOOV$PE$SSU%RDW3&OLPE)RU,QWJ 1DY3HUF5RZ6LJ6 +6 76ZLPSOXVWZRRUWKUHHRIWKHIROORZLQJ$0RYEDO &UDIW'DQFH'LYH)$LG )LVK3OD\,QVW50DV6LQJ6WDU*7DF*7UDG:HD:

5+29$1,21 &ODQ7K\QDV

&K

<

<

PO

VS

*UDPX]:DUULRUV)LJKWHUV

*UDPX]OHDGHUV2QHOHDGHU%URJGLQ GHWDLOHGLQ$OVRXVHEVDQGHLWKHUVERUOE50VWDWVDYHUDJH &R$J6'0H 5H6W4X3U(P,Q0(53VWDWVDYHUDJH 6W$J&R,J,W3U$S7\SLFDOVNLOOV$QLP7HTXLQH &OLPE '6HQVH)DUP)RU+HUG/HDG3HUF36S5LGH6 +6 76ZLP7UDFNSOXVWZRRUWKUHHRIWKHIROORZLQJ $PE$QLP+%UDZO&DPR&UDIW'UXJ7DOFRKRO )$LG*DPE+RVW(VQRZ 3OD\,QVW50DV5RZ 6WDU*7UDG:HD:

&ODQ(OLWH

5/

<

/

VS

VS

*UDPX]:DUULRUV)LJKWHUV

*UDPX]ZDUULRUV$OVRXVHEVRUKD50VWDWVDYHUDJH &R$J6'0H5H6W4X3U(P,Q 0(53VWDWVDYHUDJH 6W$J&R,J,W3U$S7\SLFDOVNLOOV$QLP7HTXLQH &OLPE&UDIW)DUP)RU+HUG 3HUF5LGH6 +6ZLPSOXVRQHRUWZRRIWKHIROORZLQJ$PE%UDZO'UXJ7DOFRKRO *DPE36S50DV6 7

&ODQ)DLUG

6/

<

$

VS

VS

*UDPX]:DUULRUV)LJKWHUV

VS

VS

/DNHIRON*UDPX] IDUPHUV

*UDPX]FODQOHY\$OVRXVHEVDQGOE8VHUHIXJHHIDUPHUVWDWLVWLFVDQGVNLOOV

5HIXJHHV)DUPHUV

6/

<

1

+DUGHQHGUXUDOIRON0D\XVHKDGEVRUFSLQVWHDG50VWDWVDYHUDJH &R$J6'0H5H6W4X3U(P,Q 0(53VWDWVDYHUDJH 6W$J&R,J,W3U$S6NLOOV$QLP7&OLPE&UDIW)DUP)RU+HUG3HUF5LGH 6 +6ZLP7UDS%:HD::RRGSOXVWZRRUWKUHHRIWKHIROORZLQJ$QLP+%UDZO'DQFH)$LG0:LIH3OD\,QVW 36S50DV5RZ6LQJ7UDFN

5HIXJHHV)DUPHUV

6/

<

1

KD

KD

/DNHIRON*UDPX] IDUPHUV

7\SLFDOUXUDOIRON0D\XVHVSFOEVRUFSLQVWHDG50VWDWVDYHUDJH &R$J6'0H5H6W4X3U(P,Q0(53 VWDWVDYHUDJH 6W$J&R,J,W3U$S6NLOOV$QLP7&OLPE&UDIW)DUP)RU+HUG3HUF5LGH6 + 6ZLP7UDS%:HD::RRGSOXVWZRRUWKUHHRIWKHIROORZLQJ$QLP+%UDZO'DQFH)$LG0:LIH3OD\,QVW36S 50DV5RZ6LQJ7UDFN

5HIXJHHV)DUPHUV

1R

<

1

FO

FS

/DNHIRON*UDPX] IDUPHUV

,QH[SHULHQFHGUXUDOIRON0D\XVHKDVSRUEVLQVWHDG50VWDWVDYHUDJH &R$J6'0H5H6W4X3U(P,Q 0(53VWDWVDYHUDJH 6W$J&R,J,W3U$S6NLOOV$QLP7&OLPE&UDIW)DUP)RU+HUG3HUF5LGH 6 +6ZLP7UDS%:HD::RRGSOXVWZRRUWKUHHRIWKHIROORZLQJ$QLP+%UDZO'DQFH)$LG0:LIH3OD\,QVW 36S50DV5RZ6LQJ7UDFN

0HUFHQDULHV

&K

<

/

EV

FS

1RUWKURQ :DUULRUV)LJKWHUV

7UDYHOOLQJZDUULRUV0DQ\XVHONKDPODQGRWKHUZHDSRQVLQVWHDG$OVRXVHVS50VWDWVDYHUDJH &R$J6'0H5H6W 4X3U(P,Q0(53VWDWVDYHUDJH 6W$J&R,J,W3U$S6NLOOV&OLPE'UXJ7DOFRKRO *DPE3HUF 5LGH6 +6 76ZLPSOXVRQHRUWZRRIWKHIROORZLQJ$PE$QLP7$SSU&UDIW)$LG)RU)UHQ-XPS 0$6W6 7 3OD\,QVW36S50DV5RZ6WXQ6XEG

+HDGPHQ

&K

<

<

VS

VE

6DJDWK :DUULRUV)LJKWHUV

5HJLRQDOOHDGHUVUDLGHUV2QH-\DJDQRWK LVGHWDLOHGLQ '%IXOOVKLHOG7ZR2%MDYHOLQV$OVRXVHMDDQGVVRUGD 50VWDWVDYHUDJH &R$J6'0H5H6W4X3U,Q(P0(53VWDWVDYHUDJH 6W$J&R,J,W3U $S7\SLFDOVNLOOV$QLP7HTXLQH &OLPE3HUF5LGH50DV6 76ZLPSOXVWZRRUWKUHHRIWKHIROORZLQJ$PE %UDZO'UXJWDOFRKRO )RU)UHQ+RVW(KLOOV -XPS/HDG36S6 +7UDFN

7UDFNHUV

1R

<

/

VV

FS

6DJDWK5DQJHUV

(OLWHPRXQWHGVFRXWV50VWDWVDYHUDJH &R$J6'0H5H6W4X3U(P,Q0(53VWDWVDYHUDJH 6W$J &R,J,W3U$S7\SLFDOVNLOOV$PE$QLP7HTXLQH &OLPE'6HQVH)RU5LGH50DV6 +6 76ZLP 7UDFNSOXVRQHRIWKHIROORZLQJ&UDIW'UXJ7DOFRKRO )$LG*DPE+RVW(KLOOV 33VSHOOOLVWVHDFK

$UFKHUV

1R

1

/

VS

VE

6DJDWK :DUULRUV)LJKWHUV

0RXQWHGDUFKHUV$OVRXVHVVRUGD50VWDWVDYHUDJH &R$J6'0H5H6W4X3U(P,Q0(53VWDWVDYHUDJH 6W$J&R,J,W3U$S7\SLFDOVNLOOV$QLP7HTXLQH &OLPE3HUF5LGH50DV6ZLPSOXVIRXURUILYHRIWKH IROORZLQJ$PE%UDZO&UDIW'UXJ7DOFRKRO )$LG)RU)UHQ*DPE+RVW(KLOOV ,QWJ-XPS6 +

6SHDUPHQ

&K

<

/

MD

MD

6DJDWK :DUULRUV)LJKWHUV

0RXQWHGZDUULRUV$OVRXVHVVRUGD7DUJHWVKLHOGV50VWDWVDYHUDJH &R$J6'0H5H6W4X3U(P,Q0(53 VWDWVDYHUDJH 6W$J&R,J,W3U$S7\SLFDOVNLOOV$QLP7HTXLQH &OLPE3HUF5LGH50DV6ZLPSOXVWZR RUWKUHHRIWKHIROORZLQJ$PE%UDZO&UDIW'UXJ7DOFRKRO )$LG)RU)UHQ*DPE+RVW(KLOOV ,QWJ-XPS6 +

1DPH

0$67(50,/,7$5<7$%/( /YO

+LWV

$7

'%

6K

*U

0HOHH2%

0LVVOH2%

00

&K

<

/

VS

VE

6ZRUGPHQ

1RWHV 6DJDWK :DUULRUV)LJKWHUV

)RRWVROGLHUV/DUKXLOJXDUGV$OVRXVHVS7DUJHWVKLHOGV50VWDWVDYHUDJH &R$J6'0H5H6W4X3U(P,Q 0(53VWDWVDYHUDJH 6W$J&R,J,W3U$S7\SLFDOVNLOOV$QLP7HTLXLQH &OLPE'5XQ3HUF5LGH50DV 6ZLPSOXVWZRRUWKUHHRIWKHIROORZLQJ$PE%UDZO&UDIW'UXJ7DOFRKRO )$LG)RU)UHQ*DPE+RVW(KLOOV ,QWJ -XPS6 +

6OLQJHUV

1R

1

/

VV

VO

6DJDWK:DUULRUV)LJKWHUV

)RRWVROGLHUV/DUKXLOJXDUGV$OVRXVHVS50VWDWVDYHUDJH &R$J6'0H5H6W4X3U(P,Q0(53VWDWV DYHUDJH 6W$J&R,J,W3U$S7\SLFDOVNLOOV$QLP7HTXLQH &OLPE'5XQ3HUF5LGH50DV6ZLPSOXV IRXURUILYHRIWKHIROORZLQJ$PE%UDZO&UDIW'UXJ7DOFRKRO )$LG)RU)UHQ*DPE+RVW(KLOOV ,QWJ-XPS6 +

%DQGLWV

5/

<

/

EV

FS

:DUULRUV)LJKWHUV ERXQW\KXQWHUV

0L[HGVFRXWVWUDFNHUV'RUZLQULP(DVWHUOLQJVDQG1RUWKURQV6RPHXVHVFONRUKDDVDPHOHHZHDSRQXVHVEDVDPLVVLOHZHDSRQFRDWZHDSRQVZLWK $QJXVDLZH9HQRPRU8UDDQD50VWDWVDYHUDJH &R$J6'0H5H6W4X3U(P,Q0(53VWDWVDYHUDJH 6W $J&R,J,W3U$S7\SLFDOVNLOOV$PE$QLP7HTXLQH &DPR&OLPE'6HQVH)RU,QWJ3HUF5LGH6LJ 6 +6ZLP7UDFNSOXVRQHRUWZRRIWKHIROORZLQJ$SSU%UDZO&UDIW'7UDS'UXJ7DOFRKRO )$LG*DPE-XPS 3/RFN50DV5RZ6XEG7ULFN853

%DQGLWV

5/

<

/

EV

FS

:DUULRUV5RJXHVDVVDVVLQV

0L[HGDPEXVKWUDSVHWWHUV'RUZLQULP(DVWHUOLQJVDQG1RUWKURQV6RPHXVHVFONRUKDDVDPHOHHZHDSRQXVHVEDVDPLVVLOHZHDSRQ&RDW ZHDSRQVZLWK$QJXVDLZH9HQRPRU8UDQQD50VWDWVDYHUDJH &R$J6'0H5H6W4X3U(P,Q0(53VWDWV DYHUDJH 6W$J&R,J,W3U$S7\SLFDOVNLOOV$PE$QLP7HTXLQH &DPR&OLPE'7UDS'6HQVH3HUF 3/RFN5LGH6.LOO6 +6XEG6ZLP7UDS%853SOXVRQHRUWZRRIWKHIROORZLQJ$SSU&UDIW'UXJ7DOFRKRO )$LG)RU,QWJ-XPS50DV5RZ6LJ7UDFN7ULFN

%DQGLWV

5/

<

/

EV

FS

0L[HG:DUULRUV5RJXHV

'RUZLQULP(DVWHUOLQJVDQG1RUWKURQV6RPHXVHVFONRUKDDVDPHOHHZHDSRQXVHVEDVDPLVVLOHZHDSRQFRDWZHDSRQVZLWK$QJXVDLZH9HQRPRU 8UDDQD50VWDWVDYHUDJH &R$J6'0H5H6W4X3U(P,Q0(53VWDWVDYHUDJH 6W$J&R,J,W 3U$S7\SLFDOVNLOOV$PE$QLP7HTXLQH %UDZO&DPR&OLPE'6HQVH)RU*DPE3HUF5LGH6 +6ZLP SOXVRQHRUWZRRIWKHIROORZLQJ$SSU&UDIW'7UDS'UXJ7DOFRKRO )$LG,QWJ-XPS3/RFN3OD\,QVW50DV5RZ 6LJ6XEG7UDFN7ULFN853

*XDUG%DQG

&K

<

<

VF

VS

:DUULRUV)LJKWHUV

&RPPRQ2UF0RJVKL·VSHUVRQDOJXDUG$OVRILJKWZLWKEVDQGVE)XOOVKLHOGV50VWDWV&R$J6'0H5H6W4X3U (P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$QLP7OXSLQH %UDZO&DY&OLPE0LQH3HUF5LGH 6ZLPSOXVRQHRUWZRRIWKHIROORZLQJ$PE*DPE+RVW(VQRZ ,QWJ6 +

8UXN&RPPDQG

&K

<

<

VF

VE

8UXN:DUULRUV)LJKWHUV

/DU]RJXKRWKGUDUWXOOXUJOHDGHUV :ROIULGHUV6RPHXVHKDQGD[HVDVWKHLUSULPDU\ZHDSRQ$OVRILJKWZLWKVSDQGGD)XOOVKLHOGV 2% VFLPLWDU50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S 6NLOOV$PE$QLP7OXSLQF %UDZO&DY&OLPE'5XQ+RVW(VQRZ ,QWJ0LQH3HUF5LGH6 +6 76ZLP

:DUULRUV

6/

<

<

VF

VE

:DUULRUV)LJKWHUV

&RPPRQ2UF/DU]RJXKRWK:ROIULGHUV6RPHXVHKDQGD[HVDVWKHLUSULPDU\ZHDSRQ$OVRZLHOGVS50VWDWV&R$J6'0H5H 6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV$QLP7OXSLQH %UDZO&DY&OLPE 0LQH3HUF5LGH6ZLPSOXVRQHRUWZRRIWKHIROORZLQJ$PE*DPE+RVW(VQRZ ,QWJ6 +

)RRW&RPPDQG

&K

<

/

VF

VE

:DUULRUV)LJKWHUV

&RPPRQ2UF/DU]RJXKRWKGUDUWXOOXUJOHDGHUV $OVRILJKWZLWK VSDQGGD50VWDWV&R$J6'0H5H6W4X3U (P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV%UDZO&DY&OLPE'5XQ0LQH3HUF6ZLP SOXVRQHRUWZRRIWKHIROORZLQJ$PE*DPE+RVW(VQRZ ,QWJ6 +

:DUULRUV

6/

<

<

VF

VE

:DUULRUV)LJKWHUV

&RPPRQ2UF9HWHUDQ/DU]RJXKRWKIRRWVROGLHUV6RPHXVHKDQGD[HVDVWKHLUSULPDU\ZHDSRQ$OVRZLHOGVS50VWDWV&R$J6' 0H5H6W4X3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV%UDZO&DY&OLPE'5XQ 0LQH3HUF6ZLPSOXVRQHRUWZRRIWKHIROORZLQJ$PE*DPE+RVW(VQRZ ,QWJ6 +

:DUULRUV

6/

<

<

VS

VE

:DUULRUV)LJKWHUV

&RPPRQ2UF/DU]RJXKRWKIRRWVROGLHUV50VWDWV&R$J6'0H5H6W4X3U(P,Q0(53VWDWV6W$J &R,J,W3U$S6NLOOV%UDZO&DY&OLPE'5XQ0LQH3HUF6ZLPSOXVRQHRUWZRRIWKHIROORZLQJ$PE*DPE +RVW(VQRZ ,QWJ6 +

6FRXWV

6/

<

/

KD

VE

&RPPRQ2UFVFRXWVWKLHYHV

/DU]RJXKRWKWUDFNHUV6RPHXVHVFLPLWDUVDVWKHLUSULPDU\ZHDSRQV50VWDWVDYHUDJH &R$J6'0H5H6W4X3U(P ,Q0(53VWDWVDYHUDJH 6W$J&R,J,W3U$S7\SLFDOVNLOOV%UDZO&DY'5XQ)RU3HUF6 +6ZLP 7UDFNSOXVRQHRUWZRRIWKHIROORZLQJ$PE&DPR'7UDS*DPE+RVW(VQRZ ,QWJ3/RFN

8UXN&RPPDQG

&K

<

<

EV

VE

8UXN:DUULRUV)LJKWHUV

$VKDUDJHOLWHZROIULGHUV$OVRXVHVVSKDDQGZKVKLHOG50VWDWVDYHUDJH &R$J6'0H5H6W4X3U(P ,Q0(53VWDWVDYHUDJH 6W$J&R,J,W3U$S7\SLFDOVNLOOV$PE$QLP7OXSLQH %UDZ,&DY&OLPE '5XQ)RU)UHQ+RVW(VQRZ ,QWJ3HUF5LGH6 +6 76ZLP

0$67(50,/,7$5<7$%/( 1DPH *XDUG%DQG

/YO

+LWV

$7

'%

6K

*U

0HOHH2%

0LVVOH2%

00

1RWHV

&K

1

<

WK

VE

8UXN:DUULRUV)LJKWHUV

8NRJ·VSHUVRQDOJXDUG$OVRILJKWZLWKEVDQGDVKLHOG50VWDWV&R$J6'0H5H6W4X3U(P,Q 0(53 VWDWV 6W$J&R,J,W3U$S7\SLFDOVNLOOV$QLP7OXSLQH %UDZO&DY&OLPE)RU3HUF5LGH6ZLPSOXVRQHRU WZRRIWKHIROORZLQJ$PE*DPE+RVW(VQRZ ,QWJ6 +6 7

%DQG/HDGHUV

&K

<

/

KD

VE

:DUULRUV)LJKWHUV

&RPPRQ2UF$VKDUDJGUDUWXOZROIULGHUV$OVRILJKWZLWK VSDQGVF50VWDWV&R$J6'0H5H6W4X3U(P ,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV%UDZO&DY&OLPE'5XQ)RU3HUF6ZLPSOXVRQHRUWZR RIWKHIROORZLQJ$PE*DPE+RVW(VQRZ ,QWJ6 +6 7

:DUULRUV

6/

<

<

VF

VE

:DUULRUV)LJKWHUV

&RPPRQ2UF9HWHUDQ$VKDUDJVROGLHUVVRPHULGHZROYHV $OVRILJKWZLWKVSDQGGD50VWDWV&R$J6'0H5H6W4X 3U(P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV%UDZO&DY&OLPE'5XQ)RU3HUF6ZLP SOXVRQHRUWZRRIWKHIROORZLQJ$PE*DPE+RVW(VQRZ ,QWJ6 +6 7

:DUULRUV

6/

1

<

VS

VE

:DUULRUV)LJKWHUV

&RPPRQ2UF$VKDUDJIRRWVROGLHUV6RPHXVHVFLPLWDUVDQGVKLHOGV$OVRZLHOGGD50VWDWV&R$J6'0H5H6W4X3U (P,Q0(53VWDWV6W$J&R,J,W3U$S,6NLOOV%UDZO&DY&OLPE'5XQ)RU3HUF6ZLP SOXVRQHRUWZRRIWKHIROORZLQJ$PE*DPE+RVW(VQRZ ,QWJ6 +

:DUULRUV

1R

<

/

SD

³

:DUULRUV)LJKWHUV

&RPPRQ2UF*UHHQ$VKDUDJIRRWVROGLHUV6RPHXVHVSHDUVDVWKHLUSULPDU\ZHDSRQ50VWDWV&R$J6'0H5H6W4X3U (P,Q0(53VWDWV6W$J&R,J,W3U$S6NLOOV%UDZ&DY&OLPE'5XQ)RU3HUF6ZLP SOXVRQHRUWZRRIWKHIROORZLQJ$PE*DPE+RVW(VQRZ ,QWJ6 +

.(<&2'(6$OVRDSSOLHVWR 7KHVWDWLVWLFVJLYHQGHVFULEHHDFK13&DPRUHGHWDLOHGGHVFULSWLRQRIVRPHRIWKHPRUHLPSRUWDQW13&VFDQEHIRXQGLQWKHPDLQWH[W6RPHRIWKH FRGHVDUHVHOIH[SODQDWRU\+LWV/YOOHYHO 0RY0PRYHPHQWDQGPDQHXYHUERQXV 6KVKLHOG 7KHPRUHFRPSOH[FRGHVDUHOLVWHGEHORZ$Q DVWHULVN LQGLFDWHVDERQXVGXHWRKLJKTXDOLW\RUPDJLFDOHTXLSPHQW $7$UPRU7\SH 7KHWZROHWWHUFRGHJLYHVWKHEHLQJ·V D
0$67(5%($677$%/(

7\SH

/YO

6L]H (QF &ULW 6SHHG

+LWV $7

'%

3ULP6HF7HU $WWDFN

%DW*UHDW1

0

9)9)

1R

0%L0&OSRLV

%DW3RQG1

7

9)9)

1R

6%LGLVSRLV

%LUGODUJH'

6

9)9)

1R

63L6&O

%LUGVPDOO'

7

9)9)

1R

73L7&O

%LWWHUQ'

6

00

1R

6&O63L

%X]]DUG &OLII' &UDEDQ'1

6 6

9)9) ))

1R 1R

0&O63L 63L6&O

&UDNH&RRW' &URZ*UHHQ:LQJ'

6 6

9)) )0)

1R 1R

63L 63L6&O

6

))

1R

'XFN*UHHQ+HDGHG'

(DJOH*UHDW'

)DOFRQ3HUHJULQH' )DOFRQ*UHDW' *RORGR' *RUFURZ'1

6 9)%) /, 9)9) 0 00 )0) 6

+DZN5RXJK/HJ' +XPPLQJELUG 'ZDUI' -DWHZRRQ' 2ZO6KRUW(DU'

6 7 / 6

9)%) 1R 9)) 1R )9) 1R )) 1R

3KHDVDQW*UHHQ'1

6

0))

1R

6%D63L

3LJHRQ%OXH'

7

)0

1R

73L7&O

5DYHQ'

6

9)9)

1R

6&O0&O

6WRUN'

6

00

1R

6+R6&O

6ZDQ3LHG' 7KUXVK'

0 6

0)6 9))

1R 1R

0%D63L 73L

9XOWXUH %ODFN' :RRGSHFNHU5HG+HDG' (HO*LDQW1

0 )0) 1R )) 6 1R /, 0)0) 6/

)LVKVPDOO'1

63L6&O

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

*RRGYHU\LQWHOOLJHQW0D\DLGORQHLQGLYLGXDOVLQ SHULO$OVRKDV /%D $JJUHVVLYH )DQWDVWLFIOLHU 6&O63L 1R 6/ /&O03L0%D 1RUPDO9HU\PDQHXYHUDEOH 3DVVLYH &RORUIXO :DWHUELUG3URWHFWLYHRIQHVW 63L 1R +XQJU\/LNHVVKLQ\REMHFWVDQGH\HEDOOV 1R 63L6&O

+/ 9)9) 5/

+&O/3L

0&O63L 73L /3L/&O/%D 6&O0&O

0&O03L 6+R63L7&O 0%L/%DO&U

6

))

1R

73L63LSRLV

/DPSUH\)UHVKZDWHU'1

6

66

/HHFK'1

7

66

6/ 1R

7*UEOHHGGLV

3LNH'1

0

0))

1R

0%L

7URXW/DNH'1 6DOPRQ'1 6WXUJHRQ'1

)) 1R 6 )) 0 6/ 0 0)0) 6/

6*UEOHHG

63L 63L 0%D6%L

$JJUHVVLYH2IWHQKRYHUVLQ IOLJKW &XULRXV7LQ\FRORUIXODQGYHU\DJLOH 3URWHFWLYHRIQHVW :DWHUELUG5DUHO\ IOLHV 1RUPDOLQWHOOLJHQW6SHDNVRZQWRQJXHDQG VRPHWLPHV6LQGDULQ5DQN RU 1RUPDO&RORUIXO *RRGHDWLQJ 1RUPDO6XPPHUVLQUHJLRQ0LJUDWHVZHVWLQYDVW IORFNV &DQEHXVHGWRFDUU\ZULWWHQPHVVDJHV 1RUPDOLQWHOOLJHQW6SHDNV0DQQLVKDQG(OYLVK WRQJXHV 1RUPDOLQWHOOLJHQW1HVWVRQWKHFKLPQH\VRI (VJDURWKGXULQJZDUPHUPRQWKV6RPHVSHDN :HVWURQ5DQNRU 1RUPDOYHU\LQWHOOLJHQW6SHDNVRZQODQJXDJH &XULRXVLQWHOOLJHQW6SHDNVRZQODQJXDJH8VHGDV PHVVHQJHUVE\'DOHPHQDQG:RRGHOYHV/LNHV 6QDLOV +XQJU\8JO\FDUULRQ IHHGHU 7LPLG &RORUIXO +XQJU\)UHVKZDWHUSUHGDWRUHJ´WKH *UXQGKHUGµ /LNHVFDUULRQJDUEDJH 1RUPDO(J%DVV&KDU3LFNHUHO3DQILVK3HUFK 6PHOWKDYH%ULWKDJXUWKKDYH)DOVHUHJ SRLVRQ 1RUPDO6XFNVKLWVUQG 1RUPDO)DYRUVVWDJQDQWZDWHU6XFNV KLWUQG FDUU\4XDNLQJ)HYHU $JJUHVVLYH)UHVKZDWHUSUHGDWRU ,QFOXGHVWKH :DOOH\H 1RUPDO6WDSOH /DNHPHQGLVK 1RUPDO6WDSOH/DNHPHQGLVK 3DVVLYH3UL]HGIRULWVURHHJJV

0$67(5%($677$%/( 7\SH

/YO

6L]H (QF &ULW 6SHHG

+LWV $7

'%

3ULP6HF7HU $WWDFN

:HOV'1 $QW'1

0 7

60) &9)

6/ 5/

0%D0*U 73L66WSRLV

%HH*URXQG' %HHWOH'1 )OHD'1

7 7 7

09) &9) 696

1R 5/ 5/

76W66WVZDUP 73L 66WGLV

*DOXQJRO '

0

00)

6/

63L66WSRLV

+RUVHIO\ '

7

9))

1R

7%LGLV

0RVTXLWR'1 1HHNHUEUHHNHU1

7 7

0'6 )0

1R 1R

7%LGLV 7%LGLV

3UD\LQJ0DQWLV1

7

&%)

5/

7*U7%L73L

6SLGHUVPDOO'1

7

969)

1R

73L73LSRLV

7LFN'1

7

&96

5/

73L66WGLVHDVH

$QGRGDLR1 $QJXVDLZs'

6 6

0)0 9))

6/ 6/

6&O6%D7%L 6%L66WSRLV

&RLUHDO'

6

69)

1R

66WSRLV

)URJ7RDG 1

7

6)

1R

7%D7*USRLV

1DWKDLU$UGRU' 1DWKUDFK ' 6DODPDQGHU1HZW 1

6 6 7

6%) 0%) 60

1R 1R 6/

66WSRLV 66WSRLV 7%LSRLVRQ

6QDNHQRQSRLVRQRXV'

6

69)

1R

7%L

7XUWOH' $WHQOD'1 $XURFK' %DGJHU1 %HDYHU'

6 6 / 0 6

&96 5/ )0) 1R 00 1R 00) 1R 00 1R

%RDU'1 %RDU)HQ'1 %HDU%ODFN'1

%HDU&DYH1 %HDU1RUWK1

&DUX(ON ' &DW)LVKLQJ'1 &KDWPRLJ1 &KLSPXQN' )R[:KLWH1

0 9)) 6 9)9) / )9) 6 00) 6 0)0)

*OXWDQ:ROYHULQH 1 *RDW:LOG' (UHGFDWK0W /LRQ 1 )LDUD1 +HGJHKRJ'1

6 0 0 0 6

+RXQG'1

0

+RXQG6KHHS'1 /LRQ6SRWWHG'1 /RVUDQGtU5HLQGHHU '1 /\Q[+LJKODQG1

0 0 0 0

63L7%D 6%L6&O 0+R/7V 0&O 6%L

1RWHV 1RUPDO8JO\ERWWRP IHHGHU 1RUPDO ELWHVUHG$QW LQMHFWD/YO FLUFXODWRU\ SRLVRQ 3URWHFWLYH1HVWVDUH+DUG WRVSRW 1RUPDO/RYHVFDUULRQ 3DVVLYH6RPH FDUU\$QJXUWK $JJUHVVLYH/DUJH6SLGHU$WWDFNVLQRUJDQL]HG JURXSV+DYH6ORWDSRLVRQ $JJUHVVLYH)RXQGQHDUZDWHU,QFOXGHVWKH%ODFNIO\ FDUU\GLVHDVH $JJUHVVLYHFDUU\
0 )0) 6/ 0+R0%D67V $JJUHVVLYH0HDQWHPSHUHGDQGVROLWDU\ 0 )0) 1R 0+R0%D67V $JJUHVVLYH 1DVW\LIFRUQHUHG /, 0)0) 6/ /*U/&O0%D 1RUPDO2PQLYRURXV/RYHVKRQH\$OVRKDV 0%L // 0)) 6/ +%D/&O/*U 1RUPDO+XJHUHWLULQJFUHDWXUH$OVRKDV/%L 6/ /&O/*U/%D $JJUHVVLYH*UHDWVZLPPHU$OVRKDV/%L /,, ))

1R 1R 6/ 1R 1R

0+R07V 7LPLG%RWKVH[HVKDYHDQWOHUV 1RUPDO.LWWHQVFDQEHGRPHVWLFDWHG 0&O6%L /&O0%D/%L $JJUHVVLYH6DEUHWRRWK&DW 7LPLG(VSHFLDOO\FRPPRQLQZRRGHGDUHDV 7%L 1RUPDO6K\&KDQJHVFRORUZLWKVHDVRQV 6%L6&O

)9) 1R 0%L0&O )) 1R 0+R0%D07V 9)9) 6/ 0&O/%L 9)9) 1R 6+R77V 66 7&O7%L 1R 9))

'RPHVWLFDWHG8VHGWRKXQW%RDUDQGDVDJXDUG 'RJ 0%L 1R 'RPHVWLFDWHG/R\DO([FHOOHQWVKHSKHUG 6/ /&O0%L0%D 1RUPDO0D\DWWDFNORQHWUDYHOOHUV 1RUPDO+DUG\DQGJUHJDULRXV*RRGHDWLQJ 0+R07V 1R 0&O0%L $JJUHVVLYH+XQWVLQRUJDQL]HGJURXSV 1R

1R

9)9) )0) )0) 9)9)

$JJUHVVLYH)LJKWVWRWKHGHDWK 1RUPDO$JLOHFOLPEHUDQGVZLPPHU $JJUHVVLYH([FHOOHQWFOLPEHU 7LPLG&RPPRQZLOGKHUELYRUH*RRGHDWLQJ 1RUPDO&RYHUHGZLWKEDUEHGVSLQHV

0%L

0$67(5%($677$%/(

/YO

(QF

0 6 0

0ROH'1 0RRVH' 0RXVH'1 0XVNUDW:RRGFKXFN0DUPRW '1 1LPILDUD:KLWH+DUW '

7\SH 0DUWHQ*LDQW'1 0DUWHQ3LQH'1 0DVWLII 0DUVK '

0HULVF7\NH'1 0LQN%ODFN5LYHU '1

6L]H &ULW 6SHHG

'%

3ULP6HF7HU $WWDFN

9)9) )9) 0))

1R 1R 6/

0%L0D 6%L7&O 0%L

6 0

)) 9)9)

6/ 6/

0%L 0%L

$JJUHVVLYH)LHUFHDQGLUUDWLRQDO &XULRXV3RVVHVVHVVOHHNIXUFRDWDQGVWURQJVFHQW 'RPHVWLFDWHG8VHGDVJXDUG'RJVE\'DOHPHQ HOLWH 1RUPDO:LOGFRZDUGO\FDQLQH $JJUHVVLYH)LHUFH,JQRUHVVWXQUHVXOWV

7 / 7 /

966 1R )0) 6/ 00) 1R 6 00) )) 1R

6&O /%D/7V 7%L 1R 0+R07V

7LPLG*DUGHQSHVW 1RUPDO)ULHQGO\ZLWK 6TXLUUHOV 7LPLG,QIHVWVVWRUHGIRRGVXSSOLHV 6%L 3DVVLYH/LNHVWREHLQRUQHDUZDWHU 1RUPDO5HYHUHGE\VRPH1RUWKURQV

7%L6&O 0&O0%L 6%L6&O

1RUPDO3OD\VGHDGLIVXUSULVHG 1RUPDO(DWV)LVKDQG6KHOOILVK 1RUPDO2IWHQZDVKHVIRRGEHIRUHHDWLQJ /LNHV JDUEDJH 1RUPDO)LOWK\WKLHIFDUU\IOHDVZLWK$QJXUWK 1RUPDO6SUD\LVD/YOUHVSLUDWRU\SRLVRQ

UDGLXVDURXQGYLFWLP WKDWVWXQVWDUJHW UQG 55 IDLOXUH

+LWV $7

6 60 1R 0 0)0) 1R 0)) 1R 6

2SRVVXP1 2WWHU%OXH' 5DFFRRQ1

5DW'1 6NXQN1

6 6

00) 0)

1R 1R

6%L 6%L7&OVSUD\

6TXLUUHO'

6

00)

1R

7%L

:HDVHO6WRDW1 :ROI'LUH1 :ROI*UH\'1

6 0)9) 1R /, 9)) 6/ 6/ )) 0

6%L7D /%L0&O /%L0&O

:ROI:DU'1

/, 9)9) 6/

/%L0&O

:ROI:KLWH1

/, 9)9) 6/

%DUURZ:LJKW1

0/

&ROG'UDNH'1

+6/

)HOO%HDVW1

//

+XRUQ'1

+/

0HZOLS1

0,,

)0

1R

ZH0%LEOHHG

6SLGHU*LDQW'1

0, 0))

6/

/3L/6WSRLV

6ZDPS6WDU1

6/ 9)9)

1R

VSHFLDO

7UHH(YLO'0

5O

6*UYDULHV SRLV

7UROO&DYH1

5/

+&OZHUR

/,

1RWHV

7LPLG0LUNZRRGYDULHW\LVEODFNIXUUHGQDVW\ WDVWLQJDQGPHDQ 1RUPDO 0D\VWHDO IRRG IURPVOHHSLQJWUDYHOOHUV $JJUHVVLYH+XQWVLQSDFNV/LDEOHWRDWWDFNKXPDQV $JJUHVVLYH+XQWVLQSDFNV0D\DWWDFNKXPDQVLI KXQJU\ $JJUHVVLYH+XQWVLQSDFNV&XQQLQJ$WWDFNV KXPDQV

$JJUHVVLYH+XQWVLQSDFNV0RVWGDQJHURXVZROIRI DOO (YLOLQWHOOLJHQW8QGHDG+DXQWVWRPEV UDGLXV 69) 1R ZH/%DIHDU )HDUVSHOO7RXFKFDXVHVSDUDO\VLVRUVOHHS'UDLQV &2UQG,PPXQHWR´VWXQµDQG´KLWVUQGµUHVXOWV 3O +%L+&O++R (YLOLQWHOOLJHQW:LQJOHVV'HDOV;FRQFXVVLRQKLWV )) $OVRKDV +%D+DV5XWKLQDXUVDOLYDDQG /KXJXUWKEORRG )) 5/, +&O/*U/%D $JJUHVVLYH'UDJRQUHODWHGPRQVWHU'HDOV[ FRQFXVVLRQKLWV$OVRKDV/%L%ORRGDFWVDV5XWK LQDXU (YLOLQWHOOLJHQW7UHHOLNHPRQVWHU'HDOV[ +%D+*U 9696 3O FRQFXVVLRQKLWV$OVRKDV +&ULI+*UJUDEV SUH\,JQRUH´VWXQµUHVXOWV

0

//D 00

/%L/&O

(YLOLQWHOOLJHQWEDUHO\ 6HPLDTXDWLFXQGHDG

UDGLXV7UDQFHVSHOOUQG55IDLOXUH %LWH GUDLQVEORRGKLWVUQG ,PPXQHWR´VWXQµDQG ´KLWVUQGµUHVXOWV (YLOLQWHOOLJHQW$WWDFNVLQRUJDQL]HGJURXSV+DV 6ORWDDQG1LPQDXUSRLVRQV %HOOLJHUHQW8QGHDGZLOORWKHZLVS&DVWVOYO /XULQJWRHQWLFHYLFWLPLQWRGDQJHUERJVTXLFNVDQG HWF WKHQGUDLQVSRLQWVRI&RUQGIURP LPPRELOL]HGRUGURZQLQJYLFWLP WDUJHW +XQJU\VHQWLHQW$QLPDWHDQGYDULHGLQDSSHDUDQFH 0DQ\VHFUHWHDPLVWWKDWDFWVDVDZHDNOYO +LWK LJLULWK2WKHUVKDYHVWUDQJOLQJWHQGULOVRUVHFUHWH UHGXFWLRQSRLVRQVIURPWKHLUURRWVWRKHOSGLJHVW SUH\ (YLOLQWHOOLJHQWEDUHO\ 5RDWWDFNLVD/&U

UDQJH 'HDOV[FRQFXVVLRQKLWV7XUQWRVWRQHLQ VXQOLJKW

0$67(5%($677$%/( 7\SH

/YO

6L]H (QF &ULW 6SHHG

+LWV $7

'%

3ULP6HF7HU $WWDFN

7UROO)RUHVW1

/,, 0)0 5/

7UROO6WRQH1

/,,

:DUJ1

.U\GD'1

6

9)9)

1R

6D0&O

(WHQOHD['

6

))

1R

6&O0&O

2JJD'

6pDKPDWKD1

6pDKPDWKD6SDZQ1

*ULPLQJ*DOZD1

60

5/

/, 9)9) 6/

/&O/%LZH

/%D/&OZH /%L/&O

1RWHV (YLOLQWHOOLJHQWEDUHO\ 'HDOV[FRQFXVVLRQKLWV 7XUQVWRVWRQHLQGLUHFWVXQOLJKWDWLQGLIIXVH VXQOLJKW $OVRKDVUR UDQJH WUHDWDV0&U (YLOLQWHOOLJHQWEDUHO\ 'HDOV[FRQFXVVLRQKLWV 7XUQVWRVWRQHLQVXQOLJKW$OVRKDVUR

UDQJH WUHDWDV0&U (YLOLQWHOOLJHQW:ROIOLNHXQGHDG$WWDFNVLQSDFNV ,PPXQHWR´VWXQµDQG´KLWVUQGµUHVXOWV%RG\ GLVVLSDWHVZKHQVODLQ 1RUPDOLQWHOOLJHQW+DHG·VSHW5DYHQDFWVDVD PHVVHQJHUDQGVS\ 6SHDNV:HVWURQ5DQN DQG 6LQGDULQ5DQN 1RUPDOLQWHOOLJHQW%RJDWXQJ·V6KRUW(DU2ZO IDPLOLDUDQGH\HV6SHDNV%HWKL)DULWKU\Q5DQN :HVWURQ5DQN DQG6LQGDULQ5DQN /RYHV 6DOPRQ

$JJUHVVLYH'LHUDJOLU·V ORQJ´SHWµÊJLO·V9LSHU 6SLWV(JLO·V9LSHUSRLVRQXSWR $JJUHVVLYH ORQJ:DWHU'UDNH9HU\SURWHFWLYH +6/ )) +%D+*U 3O RIQHVWDQG VSDZQ$OVRKDV +%LDQG :%U WUHDW:%UDVDZDWHUEROW DWWDFN 'HDOV[ FRQFXVVLRQKLWV$OORSSRQHQWVPXVWVDYHYVDOYO )HDUVSHOO)HDUVILUHHJPXOWLSOHWRUFKHV DQG VWXQQLQJEORZV+DVGLOXWHGOYO /KXJXUWKEORRG // )) 5/ +%L+%D+*U +XQJU\ ORQJEDE\:DWHU'UDNH$OVRKDV :%U'HDOV[ FRQFXVVLRQKLWV$OORSSRQHQWV PXVWVDYHYVDOYO)HDU VSHOO)HDUVILUHDQG VWXQQLQJEORZV +RVWLOH*UHDWHUJKRVWGUDLQV&RUQG·5 0/ 9)9) 1R EV/%D &DQQRWOHDYHJDOORZVDUHD&DUULHVDJKRVWVKLHOG /

9)9) 6/

0%LSRLVVSLW

127()RUDIXOOGHVFULSWLRQRIDOOWKHFUHDWXUHVOLVWHGKHUHVHHVHFWLRQRU,&(·V&UHDWXUHVRI0LGGOHHDUWK

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·ODLU$WGDZQDQGDWGXVNWKHUHLVDQRYHUODSRIERWKGLXUQDODQGQRFWXUQDODFWLYLW\ &ULW:KHQDFUHDWXUHWDNHVDFULWLFDOUHVXOWUHVROYHLWRQWKH&ULWLFDO6WULNHWDEOHLQGLFDWHGE\WKLVVODWQRFRGH QRUPDOWDEOH/ /DUJH&UHDWXUH7DEOH 6/ 6XSHU/DUJH&UHDWXUH7DEOH/DUJH7DEOHZLWKDPRGIRU0(53 , QRUPDOWDEOHZLWKVHYHULW\UHGXFHGE\RQHHJ´(µEHFRPHVD´'µ ´'µEHFRPHVD´&µHWFLJQRUH´$µUHVXOWV ,, QRUPDOWDEOHZLWKVHYHULW\UHGXFHE\WZRHJ´(µEHFRPHVD´&µ´'µEHFRPHVD´%µHWFLJQRUH ´$µDQG´%µUHVXOWV 6SG$FUHDWXUH·VVSHHGJLYHQLQWHUPVRIPRYHPHQWVSHHGDWWDFNTXLFNQHVV& &UHHSLQJ96 9HU\6ORZ6 6ORZ0 0HGLXP0) 0RGHUDWHO\ )DVW) )DVW9) 9HU\)DVW%) %OLQGLQJO\)DVW $77KHWZROHWWHUFRGHJLYHVWKHFUHDWXUH·V0(53DUPRUW\SH1R 1R$UPRU6/ 6RIW/HDWKHU5/ 5LJLG/HDWKHU&K &KDLQ3O 3ODWH7KH QXPEHULVHTXLYDOHQWWRWKHFUHDWXUH·V50DUPRUW\SH $WWDFN(DFKDWWDFNFRGHEHJLQVZLWKWKHFUHDWXUH·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´SULPDU\µDWWDFN'HSHQGLQJXSRQWKHVLWXDWLRQDQGWKHVXFFHVVRIWKH SULPDU\DWWDFNLWPD\ODWHUXVHLWV´VHFRQGDU\µRU´WHUWLDU\µDWWDFNDOOLQWKHVDPHURXQGLISUHYLRXVDWWDFNDUHYHU\VXFFHVVIXO

(1&2817(57$%/(6

7KHJDPHPDVWHUVKRXOGFRQVXOWWKHDSSURSULDWHWDEOHWRGHWHUPLQHZKHWKHURUQRWDQHQFRXQWHUZLOOWUDQVSLUHWDEOHLIWKHSOD\HUVDUHLQWKHFRXQWU\VLGH WDEOH LIWKHSOD\HUVDUHLQ /DNHWRZQWDEOH LIWKHSOD\HUVDUHLQDQRWKHUUHJLRQDOWRZQRUYLOODJH7DEOH PD\EHXVHGDVDVXEWDEOHIRUWR GHWHUPLQHWKHVSHFLILFVRIDKHUESODQWHQFRXQWHULQWDEOH 3OD\HUJURXSVWKDWDUHIRUDJLQJIRUVSHFLILFKHUEVVKRXOGXVHWDEOH

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

&KDQFH 'LVWDQFHPLOHV 7LPHKRXUV

/RQJ/DNH 6KRUHV

5XQQLQJ5 )RUHVW5

/RQJ/DNH

1RUWKHUQ 2DN 6DYDQQDK

³ ³ ³ ³ ³ ³ ³ HS

³ ³ ³ ³ ³ ³ ³ HS

³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ HS

³ ³

,QDQLPDWH 7KLQJV $YDODQFKH&DYH,Q %XULDO6LWH &DYH&DYHUQ &KDVP &OHDULQJ *HQHUDO7UDS +HUE3ODQW /DLU /RRVH6FUHH 0LQH4XDUU\ 0LVW)RJ 3DWK1HZ 3DWK%ORFNHG 5XLQV 6HWWOHPHQW&DPS :DWHU6SULQJ

³ ³

$QLPDOV %LUGV%DWV %DW*UHDW1 %DW3RQG1 %LUGODUJH' %LUGVPDOO' %LWWHUQ' %X]]DUG &OLII' &UDEDQ'1 &UDNH&RRW' &URZ*UHHQ:LQJ'

³

³

³ ³

'XFN*UHHQ+HDGHG' (DJOH*UHDW' )DOFRQ3HUHJULQH' )DOFRQ*UHDW' ³ *RORGR' *RUFURZ'1 +DZN5RXJK/HJ' +XPPLQJELUG'ZDUI' -DWHZRRQ'

³

³

³ ³ ³

2ZO6KRUW(DU' 3KHDVDQW*UHHQ'1 3LJHRQ%OXH' 5DYHQ' 6WRUN' 6ZDQ3LHG' 7KUXVK' 9XOWXUH%ODFN' :RRGSHFNHU 5HG+HDG'

³ ³ ³ ³

(QFRXQWHU

/RQJ/DNH 6KRUHV

5XQQLQJ5 )RUHVW5

/RQJ/DNH

1RUWKHUQ 2DN 6DYDQQDK

)LVK:DWHU&ULWWHUV (HO*LDQW1 )LVKVPDOO'1 /DPSUH\ )UHVKZDWHU'1 /HHFK'1 3LNH'1 7URXW/DNH'1 6DOPRQ'1 6WXUJHRQ'1 :HOV'1

³

³ ³ ³ ³ ³ ³ ³

,QVHFWV$UWKURSRGV $QW'1 %HH*URXQG' %HHWOH'1 )OHD'1 *DOXQJRO' +RUVHIO\ ' 0RVTXLWR'1 1HHNHUEUHHNHU1 3UD\LQJ0DQWLV1 6SLGHUVPDOO'1 7LFN'1

³ ³ ³

³ ³ ³

³ ³ ³ ³ ³ ³ ³ ³

³ ³

5HSWLOHV$PSKLELDQV ³ $QGRGDLR1 $QJXVDLZs' &RLUHDO' )URJ7RDG1 1DWKDLU$UGRU' ³ 1DWKUDFK' 6DODPDQGHU1HZW1 6QDNHQRQSRLVRQRXV' 7XUWOH'

³

³ ³ ³ ³

³

0DPPDOV $WHQOD'1 $XURFK' %DGJHU1 %HDYHU' %RDU'1 %RDU)HQ'1 %HDU%ODFN'1 %HDU&DYH1 %HDU1RUWK1

³ ³ ³ ³

³

³ ³ ³ ³ ³ ³ ³ ³

³ ³

&DUX(ON ' &DW)LVKLQJ'1 &KDUPLJ1 &KLSPXQN' (UHGFDWK0W/LRQ 1 )LDUD1 )R[:KLWH1 *OXWDQ:ROYHULQH 1

³ ³

³ ³

³ ³ ³ ³ ³ ³ ³ ³

³ ³

&28175<6,'((1&2817(57$%/( (QFRXQWHU

/RQJ/DNH 6KRUHV

5XQQLQJ5 )RUHVW5

/RQJ/DNH 1RUWKHUQ 2DN 6DYDQQDK

*RDW:LOG' ³ +HGJHKRJ'1 +RXQG'1 +RXQG6KHHS'1 /LRQ6SRWWHG'1 /RVUDQGtU5HLQGHHU '1 ³ /\Q[+LJKODQG1 ³ 0DUWHQ*LDQW'1

³ ³ ³

³ ³ ³ ³ ³ ³ ³ ³

³ ³

³

³ ³

³ ³ ³

1LPILDUD:KLWH +DUW 2SRVVXP1 2WWHU%OXH' 5DFFRRQ1 5DW'1 6NXQN1 6TXLUUHO' :HDVHO6WRDW1

³ ³ ³ ³ ³ ³ ³

:ROI'LUH1 :ROI*UH\'1 :ROI:DU'1 :ROI:KLWH1

³ ³

³

³ ³ ³ ³

³

³ ³ ³ ³ ³ ³ ³ ³ ³

³ ³ ³ ³ ³ ³ ³ ³ ³

³ ³ ³ ³ ³ ³ ³ ³ ³

³ ³ ³ ³ ³ ³ ³ ³

+XPDQV %HLMDEDU 'DOHPHQ 'RUZLQDGDQ (RWKUDLP (DVWHUOLQJV *UDPX] /DNHPHQ :RRGPHQ %DQGLWV 1HFURPDQFHU6HUYDQWV

³ ³ ³ ³

³

³ ³ ³ ³ ³

³

'ZDUYHV 7UDGHUV7UDYHOOHUV

³

0DUWHQ3LQH'1 0DVWLII0DUVK' 0HULVF7\NH'1 0LQN %ODFN5LYHU '1 0ROH'1 0RRVH' 0RXVH'1 0XVNUDW:RRGFKXFN 0DUPRW'1

0RQVWHUV8QGHDG %DUURZ:LJKW1 &ROG'UDNH'1 )HOO%HDVW1 +XRUQ'1 0HZOLS1 6SLGHU*LDQW'1 6ZDPS6WDU1 7UHH(YLO'1 :DUJ1

3HRSOH

2UFV 3DWURO1 5DLGLQJ3DUW\1 7ULEXWH&DUDYDQ1

³ ³

³ ³ ³

:RRGHOYHV %RUGHU*XDUG 3DWURO5DIWHOYHV 2XWGRRU3DUW\1

³ ³

³ ³

³ ³

³ ³ ³

(QFRXQWHU

7UROOV 7UROO&DYH1 7UROO)RUHVW1 7UROO6WRQH1 *LDQWV *LDQWV/HVVHU1

/RQJ/DNH 6KRUHV

5XQQLQJ5 )RUHVW5

/RQJ/DNH

1RUWKHUQ 2DN 6DYDQQDK

³ ³

³

³ ³ ³

³

³

³

2WKHUV

6SHFLDO

0LUNZRRG

0WVRI 0LUNZRRG

$YDODQFKH&DYH,Q %XULDO6LWH &DYH&DYHUQ &KDVP &OHDULQJ *HQHUDO7UDS +HUE3ODQW /DLU

³ ³

³

³ ³ ³ ³

/RRVH6FUHH 0LQH4XDUU\ 0LVW)RJ 3DWK1HZ 3DWK%ORFNHG 5XLQV 6HWWOHPHQW&DPS :DWHU6SULQJ

³ ³

³ ³

³ ³ ³ ³ HS

³ ³ ³ ³

³ ³ ³

³ ³ ³

'XFN*UHHQ+HDGHG' ³ (DJOH*UHDW' ³ )DOFRQ3HUHJULQH' )DOFRQ*UHDW' *RORGR' ³ *RUFURZ'1 +DZN5RXJK/HJ' ³ +XPPLQJELUG'ZDUI' ³ -DWHZRRQ' ³

³ ³ ³ ³ ³ ³

³ ³ ³ ³

³ ³

2ZO6KRUW(DU' 3KHDVDQW*UHHQ'1 3LJHRQ%OXH' 5DYHQ' 6WRUN' 6ZDQ3LHG' 7KUXVK' 9XOWXUH%ODFN' :RRGSHFNHU 5HG+HDG'

³ ³ ³ ³

³ ³ ³ ³

³ ³

(QFRXQWHU

&KDQFH 'LVWDQFHPLOHV 7LPHKRXUV

,URQ+LOOV /DQJ0DULVK *UH\0W :LGX0DULVK )RRWKLOOV

,QDQLPDWH 7KLQJV

$QLPDOV %LUGV%DWV %DW*UHDW1 %DW3RQG1 %LUGODUJH' %LUGVPDOO' %LWWHUQ' %X]]DUG &OLII' &UDEDQ'1 &UDNH&RRW' &URZ*UHHQ:LQJ'

(QFRXQWHU

&28175<6,'((1&2817(57$%/( 0LUNZRRG

)LVK:DWHU&ULWWHUV (HO*LDQW1 )LVKVPDOO'1 /DPSUH\)UHVKZDWHU'1 /HHFK'1 3LNH'1 7URXW/DNH'1 6DOPRQ'1 6WXUJHRQ'1 :HOV'1

0WVRI 0LUNZRRG

,URQ+LOOV /DQJ0DULVK *UH\ 0W :LGX0DULVK )RRWKLOOV

³ ³ ³ ³ ³ ³ ³ ³ ³

³ ³ ³ ³ ³ ³ ³ ³ ³

³ ³ ³ ³ ³ ³ ³ ³ ³

³

³ ³

³ ³

³ ³

³ ³ ³ ³

5HSWLOHV$PSKLELDQV $QGRGDLR1 ³ $QJXVDLZs' &RLUHDO' )URJ7RDG1 1DWKDLU$UGRU' ³ 1DWKUDFK' ³ 6DODPDQGHU1HZW 1 6QDNHQRQSRLVRQRXV' ³ 7XUWOH'

³ ³ ³

³ ³ ³

³ ³

0DPPDOV $WHQOD'1 $XURFK' %DGJHU1 %HDYHU' %RDU'1 %RDU)HQ'1 %HDU%ODFN'1 %HDU&DYH1

³ ³ ³

³ ³ ³

³ ³ ³

,QVHFWV$UWKURSRGV $QW'1 %HH*URXQG' %HHWOH'1 )OHD'1 *DOXQJRO' +RUVHIO\' 0RVTXLWR'1 1HHNHUEUHHNHU1 3UD\LQJ0DQWLV1 6SLGHUVPDOO'1 7LFN'1

³ ³ ³

%HDU1RUWK1 ³ &DUX(ON ' ³ &DW)LVKLQJ'1 ³ &KDWPRLJ1 ³ &KLSPXQN' (UHGFDWK0W/LRQ 1 ³ )LDUD1 )R[:KLWH1

³ ³ ³ ³

³ ³ ³

*OXWDQ:ROYHULQH 1 ³ *RDW:LOG' ³ +HGJHKRJ'1 +RXQG'1 ³ +RXQG6KHHS'1 ³ /LRQ6SRWWHG'1 ³ /RVUDQGtU5HLQGHHU '1 ³ /\Q[+LJKODQG1 ³

³ ³ ³ ³ ³

³

³ ³ ³ ³ ³ ³ ³

0DUWHQ*LDQW'1 0DUWHQ3LQH'1 0DVWLII0DUVK' ³ 0HULVF7\NH'1 ³ 0LQN%ODFN5LYHU '1 0ROH'1 ³ 0RRVH' 0RXVH'1 ³

³ ³ ³ ³ ³

³ ³

³ ³

(QFRXQWHU

0LUNZRRG

0WVRI 0LUNZRRG

,URQ+LOOV /DQJ0DULVK *UH\0W :LGX0DULVK )RRWKLOOV

0XVNUDW:RRGFKXFN 0DUPRW'1 1LPILDUD :KLWH+DUW ' 2SRVVXP1 2WWHU%OXH' 5DFFRRQ1

³

³

³ ³

5DW'1 6NXQN1 6TXLUUHO' :HDVHO6WRDW1 :ROI'LUH1 :ROI*UH\'1 :ROI:DU'1 :ROI:KLWH1

³ ³

³ ³

³ ³ ³

³ ³ ³

³ ³ ³

³ ³ ³ ³ ³

³ ³ ³ ³ ³

³ ³ ³

³ ³ ³ ³ ³ ³

³

³ ³ ³ ³ ³

0RQVWHUV8QGHDG %DUURZ:LJKW1 &ROG'UDNH'1 )HOO%HDVW1 +XRUQ'1 0HZOLS1 6SLGHU*LDQW'1 6ZDPS6WDU1 7UHH(YLO'1 :DUJ1

3HRSOH +XPDQV %HLMDEDU 'DOHPHQ 'RUZLQDGDQ (RWKUDLP (DVWHUOLQJV *UDPX] /DNHPHQ :RRGPHQ %DQGLWV 1HFURPDQFHU6HUYDQWV 'ZDUYHV 7UDGHUV7UDYHOOHUV

³

³

³

2UFV 3DWURO1 5DLGLQJ3DUW\1 7ULEXWH&DUDYDQ1

³

:RRGHOYHV %RUGHU*XDUG 3DWURO5DIWHOYHV 2XWGRRU3DUW\1

³

³ ³ ³

³

7UROOV 7UROO&DUH1 7UROO)RUHVW1 7UROO6WRQH1

³ ³

*LDQWV *LDQWV/HVVHU1

³

2WKHUV

6SHFLDO

/$.(72:1(1&2817(57$%/(

$QLQLWLDOSHUFHQWLOHGLFH UROOVKRXOGEHPDGHIRUHDFKGLVWDQFHRUWLPHLQWHUYDOWUDYHOOHGRUVSHQWE\WKH3&VLQWKHOLVWHGDUHDZKLFKHYHULVVKRUWHU ,IDUROOLVHTXDOWRRUOHVVWKDQWKHSHUFHQWDJHFKDQFHOLVWHGDVHFRQGSHUFHQWLOHGLFHUROOVKRXOGEHPDGHWRGHWHUPLQHWKHQDWXUHRIWKHHQFRXQWHU (QFRXQWHU

$OGEXKU +HULEXKU

9LVFHUVWHGH

:DHU~WKRU 0DQJWKRU

7KUDLQ KXLOVWHGH

,QDQLPDWH+D]DUGV

$QLPDOV

,Q7UDQVLW 5RZGLHV :RUNLQJ3OD\LQJ/RXQJLQJ

&RPPHUFLDO

&KDQFH 'LVWDQFHPLOHV 7LPHKRXUV

/RFDO&RPPRQ)RON ,Q7UDQVLW 5RZGLHV :RUNLQJ3OD\LQJ /RXQJLQJ &RPPHUFLDO 'ZDUYHV (GIUHDKLU 0HPEHUV )RRG9HQGRUV 0HUFKDQW&UDIW 9HQGRUV 5DIWHOYHV 6KLS7UDGHUV6DLORUV 6PXJJOHUV

³

³

&DVXDO $FWRUV%XVNHUV %HJJDUV'HUHOLFWV 0HVVHQJHUV 3XEOLF$QQRXQFHU 5HIXJHHV6DLORUV :\UGWHOOHU6HHU

3RWHQWLDOO\ 'DQJHURXV $GYHQWXUHUV 0HUFHQDULHV 5HIXJHHV6DLORUV 5XIILDQV%UDYRHV 6WUHHW*DPEOHUV

³

'DQJHURXV &ULPLQDOV &XWSXUVHV3LFNSRFNHWV 0XJJHUV%ULJDQGV 0LOLWDU\ %ULGJH*XDUG&KDQJLQJ 'ULKWHQ3DWURO 2IIGXW\ 'ULKWHQ

³

³

³

3HUVRQDOLW\

6SHFLDO

&ODWKRU

+XZDHUN\Q

:HVWRUI

,QDQLPDWH+D]DUGV

$QLPDOV

³

6

³

&KDQFH 'LVWDQFHPLOHV 7LPHKRXUV

/RFDO&RPPRQ )RON

'ZDUYHV (GIUHDKLU 0HPEHUV )RRG9HQGRUV 0HUFKDQW&UDIW 9HQGRUV 5DIWHOYHV 6KLS7UDGHUV6DLORUV 6PXJJOHUV &DVXDO $FWRUV%XVNHUV %HJJDUV'HUHOLFWV 0HVVHQJHUV3XEOLF $QQRXQFHU 5HIXJHHV6DLORUV :\UGWHOOHU6HHU 3RWHQWLDOO\ 'DQJHURXV $GYHQWXUHUV 0HUFHQDULHV 5HIXJHHV6DLORUV 5XIILDQV%UDYRHV 6WUHHW*DPEOHUV 'DQJHURXV &ULPLQDOV &XWSXUVHV3LFNSRFNHWV 0XJJHUV%ULJDQGV 0LOLWDU\

³

%ULGJH*XDUG&KDQJLQJ 'ULKWHQ3DWURO 2IIGXW\ 'ULKWHQ

3HUVRQDOLW\

6SHFLDO

85%$1(1&2817(57$%/((;&/8',1*/$.(72:1

$QLQLWLDOSHUFHQWLOHGLFH UROOVKRXOGEHPDGHIRUHDFKGLVWDQFHRUWLPHLQWHUYDOWUDYHOOHGRUVSHQWE\WKH3&VLQWKHOLVWHGVHWWOHPHQWZKLFKHYHULVVKRUWHU ,IDUROOLVHTXDOWRRUOHVVWKDQWKHSHUFHQWDJHFKDQFHOLVWHGDVHFRQGSHUFHQWLOHGLFHUROOVKRXOGEHPDGHWRGHWHUPLQHWKHQDWXUHRIWKHHQFRXQWHU (QFRXQWHU

'DOH

/RQGDURWK

&RWVWRZ

%XKU&KHS %XKU0DUGHQ

&KDQFH 'LVWDQFHPLOHV 7LPHKRXUV

,QDQLPDWH+D]DUGV

$QLPDOV

/RFDO&RPPRQ )RON ,Q7UDQVLW 5RZGLHV :RUNLQJ3OD\LQJ /RXQJLQJ

&RPPHUFLDO 'ZDUYHV (GIUHDKLU 0HPEHUV )RRG9HQGRUV 0HUFKDQW&UDIW 9HQGRUV 6KLS7UDGHUV6DLORUV 6PXJJOHUV

³

³

³

³

&DVXDO $FWRUV%XVNHUV %HJJDUV'HUHOLFWV

(QFRXQWHU

'DOH

/RQGDURWK

&RWVWRZ

%XKU&KHS %XKU0DUGHQ

0HVVHQJHUV 3XEOLF$QQRXQFHU 5HIXJHHV6DLORUV :\UGWHOOHU6HHU

³ ³

³

:DWFK&KDQJLQJ *XDUG3DWURO 2IIGXW\ :DWFK

³ ³ ³

³ ³ ³

3HUVRQDOLW\

³

6SHFLDO

3RWHQWLDOO\ 'DQJHURXV $GYHQWXUHUV 0HUFHQDULHV 5HIXJHHV6DLORUV 5XIILDQV%UDYRHV 6WUHHW*DPEOHUV

³

³

'DQJHURXV &ULPLQDOV &XWSXUVHV3LFNSRFNHWV 0XJJHUV%ULJDQGV

0LOLWDU\

+(5%6$1'63(&,$/3/$176(1&2817(57$%/( 7KLVWDEOHPD\EHXVHGE\SOD\HUJURXSVIRUDJLQJIRUKHUEV2QO\UDUHDQGXQXVXDOIORUDLVLQFOXGHGKHUHLQWKHFKDQFHRIILQGLQJRWKHUPRUHFRPPRQSODQWV ZKLFK3&VVHHNHJDVWRXWDVKVDSOLQJWREHXVHGDVDODQFHVKDIWDVWUDLJKWDQGVXSSOH
(DVWHUQ/RQJ/DNH9DOOH\ $UIDQGDV) $UODQ·V6OLSSHU $UQXPLQDV $USVXVDU) $UXQ\D $WWDQDU) %DUDQL %OXH3LQH %ULJKW%OXH(\HV %XUVWKHODV &DUHIUHH0XVWDUG &XUO\EDUN+LFNRU\ 'DUVXULRQ 'HOUHDQ (GUDP) (OEHQ·V%DVNHW )HEIHQGX) .HOYHQWDUL /DUKD) 0LUHQQD 0XLOIDQD 0RRN 1HOWKDQGRQ 5XPDUHWK 6KHQ) 6LOUDHQ 6LQGROXLQ 6PRRWK2DN 6SOD\IRRW *RRGZRUW) 6XUDQLH) 7XOD[DU 8UDDQD :KLWHEHUULHG
5XQQLQJ5)RUHVW 5 /DQJ0DULVK:LGX0DULVK $UIDQGDV) $UODQ $UQXPLQDV $USVXVDU) $UXQ\D $WWDQDU7 %UHDWKEORVVRP %ULJKW%OXH(\HV %XUVWKHODV &XUO\EDUN+LFNRU\ (OEHQ·V%DVNHW .HOYHQWDUL /DWKD) 1HOWKDQGRQ 5XPDUHWK 6KHQ) 6LOUDHQ 6LQGROXLQ 6PRRWK2DN 6SOD\IRRW *RRGZRUW) 6XUDQLH) 7RXFK*UDVV 8UDDQD
1RUWKHUQ2DN6DYDQQDK $UODQ $UQXPLQDV $USVXVDU) $UXQ\D $WWDQDU) %UHDWKEORVVRP %ULJKW%OXH(\HV %XUVWKHODV &XUO\EDUN+LFNRU\ (OEHQ·V%DVNHW .HOYHQWDUL /DWKD) 1HOWKDQGRQ 5XPDUHWK 6KHQ) 6LOUDHQ 6LQGROXLQ 6PRRWK2DN 6SOD\IRRW*RRGZRUW) 6XUDQLH) 7RXFK*UDVV 8UDDQD
+(5%6$1'63(&,$/3/$176(1&2817(57$%/(

127(6 7KH*0PD\UROORQWDEOH WRGHWHUPLQHWKHH[DFWQDWXUHRIWKHKHUESODQW ´HSµ LQGLFDWHVWKDWZDWHULVHYHU\ZKHUHSUHVHQWIRUWKHWHUUDLQW\SHLQTXHVWLRQ /DNHWRZQKDVDYHU\YDULHGPL[RI LQKDELWDQWV LQ7$ 7KHJHQHUDOSUREDELOLW\RIPHHWLQJVRPHRQHIURPDJLYHQFXOWXUHRUVXEFXOWXUHEUHDNV GRZQ DV IROORZVUROO SHUFHQWLOHGLFH /DNHIRON *UDPX] 'D,HIRON 2WKHU1RUWKURQVLQFOe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
0WVRI0LUNZRRG $UIDQGDV $UODQ·V6OLSSHU %DUDQL %ODFN&ORYHU %OXH3LQH 'DUVXULRQ 'HOUHDQ (GUDP) )HEIHQGX) /DWKD 0LUHQQD 0LUHWDU·V&URZQ 0RRN 2QGRKLWKXL 5LJDDQD :KLWHEHUULHG
,URQ+LOOV $UIDQGDV) $UODQ·V6OLSSHU $UQXPLQDV $USVXVDU) $UXQ\D $WWDQDU) %DUDQL %OXH3LQH %ULJKW%OXH(\HV %XUVWKHODV &DUHIUHH0XVWDUG &XUO\EDUN+LFNRU\ 'DUVXULRQ 'HOUHDQ (GUDP) (OEHQ·V%DVNHW )HEIHQGX) .HOYHQWDUL /DWKD) 0LUHQQD 0XLOIDQD 0RRN 1HOWKDQGRQ 5XPDUHWK 6KHQ) 6LOUDHQ 6LQGROXLQ 6PRRWK2DN 6SOD\IRRW *RRGZRUW) 6XUDQLH) 7XOD[DU 8UDDQD :KLWHEHUULHG
*UH\0WV)RRWKLOOV $UIDQGDV $UODQ·V6OLSSHU %DUDQL %OXH3LQH 'DUVXULRQ 'HOUHDQ 'ZDUYHV(\HEULJKW (GUDP) )HEIHQGX) /DWKD 0LUHQQD 0LUHWDU·V&URZQ 0RRN 2QGRKLWKXL :KLWHEHUULHG

),1',1*+(5%6$1'32,6216

7DEOHOLVWVWKHKHUEVDQGSRLVRQVZKLFKFDQEHIRXQGLQWKHUHJLRQRIWKH/RQJ/DNH+HUEVZKLFKFRPPRQO\DSSHDULQWKHJDUGHQVRIWKH/DNHPHQ DQGWKH'DOHPHQKDYHDQ´;µLQWKH'RPHVWLFFROXPQWRLQGLFDWHWKLV7KRVHZLWKD´'µLQWKH'RPHVWLFFROXPQDUHRQO\IRXQGLQWKHJDUGHQVRIWKHIRON RI'DOHWKRVHPDUNHGZLWKDQ´6µDUHQRWQDWLYHWRWKHUHJLRQEXWDUHRIWHQDYDLODEOHLQVKRSVHWF+HUEVPDUNHG´;µLQWKH:LOGFROXPQDUHQDWLYHWRWKH UHJLRQDQGDUHFDWHJRUL]HGLQWRIRXUELRPHV2SHQWKH1DQ$QQHQ1DQ&HOGXLQDQGUHODWLYHO\RSHQDUHDVHDVWRI0LUNZRRG)RUHVW0LUNZRRGWKH*UHDW DQG WKH ZRRGHGDUHDVHDVW RIWKDW IRUHVW +LOOVWKH VWHHSHDVWHUQVFDUSRIWKH1DQ $QQHQ 1DQ &HOGXLQ DQGWKHURFN\KLOOVHDVWDQG QRUWKHDVWRI(UHERU 0RXQWDLQVWKH0RXQWDLQVRI0LUNZRRG6µ(P\QQX)XLQµ WKHZHVWHUQ,URQ+LOOVDQGWKHPRVWVRXWKHUO\VORSHVRIWKH*UH\0RXQWDLQV7KHQXPEHUFRGH LVWKHGLIILFXOW\RIILQGLQJWKHKHUELQTXHVWLRQ 5RXWLQH (DV\ /LJKW 0HGLXP +DUG 9HU\+DUG ([WUHPHO\+DUG 6KHHU)ROO\ $EVXUG $Q´0µXQGHUWKH)RUHVWFROXPQLQGLFDWHVWKDWWKHSODQWLVIRXQGH[FOXVLYHO\LQ 0LUNZRRG:KHQDQ´)µIROORZVWKHQXPEHUFRGHWKDWSODQWPD\RQO\EHIRXQGDORQJIUHVKZDWHUFRDVWVDQGEDQNVLQFOXGLQJ6ZDPSDUHDVOLNHWKH$HOLQDQQ 0DUVKHV ZLWKLQWKHSULPDU\ELRPH7KHSURSHUWLHVRIPDQ\RIWKHVHKHUEVDUHOLVWHGRQWKH0(53+HUEV3RLVRQVDQG'LVHDVHV7DEOH67 RUWKH50 WDEOHVWKHUHPDLQGHUDUHOLVWHGLQ7DEOHEHORZ6RPHDUHDOVRGHVFULEHGLQ,&(·V7UHDVXUHVRI0LGGOHHDUWK

+(5%$1'32,6216,17+(5(*,21 +HUE3RLVRQ

'RPHVWLF

:LOG

$ORH ' $UIDQGDV ; $UNDVX 6 $UODQ ; $UODQ·V6OLSSHU $UQXPLQDV ; $USVXVDU $UXQ\D ; $WKHODV ' $WWDQDU $ZQ %DUDQL %ODFN&ORYHU %ODFN9LQH %OXH3LQH %UHDWKEORVVRP ; %ULJKW %OXH(\HV %XUVWKHODV &DUHIUHH 0XVWDUG ; &KDSEHHFK &XUO\EDUN +LFNRU\ 'DUVXULRQ ; 'HDGO\ 0LONZKLWHWUXPSHW 'HOUHDQ 'LQ)XLQHQ 'ZDUYHV·(\HEULJKW (GUDP (OEHQ·V%DVNHW )HEIHQGX )RUHVW+HPORFN )XUU\2DN *UDSHOHDI0DJQROLD

2SHQ

)RUHVW

+LOOV

0WV

)

)

;

; ; ; ; ;

)

) )

; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ;

)

)

0 0

0

0 )

) )

)

0

+HUE3RLVRQ .HOYHQWDUL /DWKD /HPVDQJ /LFKHQ*ORULRVD 0LUHQQD 0LUHWDU·V&URZQ 0RRN 0XLOIDQD 1HOWKDQGRQ 2QGRKLWKXL 3HOHGKHO 5HZN 5LJDDQD 5RVH7UHH 5XPDUHWK 6DUDK 3RNHVKHUKHDG 6KHQ 6LOUDHQ 6LQGROXLQ 6PRRWK2DN 6SOD\IRRW *RRGZRUW 6XUDQLH 7HOGDOLRQ 7KXUO 7RXFK*UDVV 7XOD[DU 8UDDQD :KLWHEHUULHG
'RPHVWLF

; ; ; ;

; ;

;

:LOG

2SHQ

; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ;

&)

)RUHVW

+LOOV

0WV

)

)

0

0 0 0

) ) )

) ) )

) ) )

0

+(5%6(1&+$17(')22''5,1.$1'32,6216 +HUE

&RGH

$)

)RUP3UHS

&RVW

(IIHFW

$ORH

W+

/HDIDSSO\

VS

$UIDQGDV $UNDVX $UODQ $UODQ·V6OLSSHU

F) ³ W7 F0

6WHPDSSO\ 0L[DSSO\ /HDIDSSO\ 5RRWEUHZ

VS JS VS FS

$UQXPLQDV

P6

/HDIDSSO\

FS

[KHDOLQJUDWHIRUEXUQVDQGPLQRUFXWV+HDOVKLWVLIWKH\UHVXOWIURP EXUQV [KHDOLQJUDWHIRUIUDFWXUHV +HDOVKLWVDQG[KHDOLQJUDWHIRUPDMRUZRXQGV +HDOVKLWV:LOGKHDOV KLWV 'HFRQJHVWDQW WR55VYVFRPPRQFROG6SHHGVUHFRYHU\IURP UHVSLUDWRU\LOOQHVVE\[ [KHDOLQJUDWHIRUVSUDLQVWRUQOLJDPHQWVDQGFDUWLODJHGDPDJH

$USVXVDU $UXQ\D $WKHODV

W) P6 W&

%URZQVWDONEUHZ 5HGURRWEUHZ 6LOYHUOHDIEUHZ

JS FS JS

$WWDQDU $ZQ %UHDWKEORVVRP

W) W' P'

*UHHQPRVVDSSO\ JS *UH\EDUNEUHZ JS 3LQN IORZHUDSSO\ FS

0HQGVPXVFOHGDPDJH &DXVHVVOHHSDQGTXLFNXQFRQVFLRXVQHVVKURIWKLVVOHHS QRUPDOKUV &DSDEOHRIFXULQJDQ\WKLQJZKLOHSDWLHQWVWLOODOLYHEXWKHDOLQJRQO\DV HIIHFWLYHDVWKHKHDOHU)XOOHIIHFWRQO\LQWKHKDQGVRIDQ´RUGDLQHGµNLQJ :LOO QRWNHHSRUJLYHOLIH &XUHV IHYHU $LGVUHMRLQLQJRIVHYHUHGOLPEV 3URGXFHVIUDJUDQWVFHQW IRU KUV

+(5%6(1&+$17(')22''5,1.$1'32,6216 +HUE

&RGH

$)

)RUP3UHS

&RVW

(IIHFW

JS JS JS VS VS

(QKDQFHGYLVLRQ[UDQJH SOXVPLOGQLJKWYLVLRQDWOHDVW IRUKUV 8VHDEOH [GD\RQO\ 5HSDLUVVKDWWHUHGERQH +HDOVVXSHUILFLDOZRXQGVVRRWKHVPRUHVHULRXVZRXQGVLQPLQV +HDOV KLWV 5HSHOVLQVHFWVWKH\PXVWPDNHDOYO55 LQD UDG6PHOOVQRWLFHDEO\ IRXOXSWR DZD\ $OORZVQLJKWYLVLRQXSWR

%ULJKW%OXH(\HV

P6

%OXH IORZHUEUHZ

%XUVWKHODV &DUHIUHH 0XVWDUG 'DUVXULRQ 'HOUHDQ

W6 P& F0 W&

'XQVWDONEUHZ 2FKHUVHHGDSSO\ 6LOYHU OHDIDSSO\ 'XQEDUNDSSO\

'ZDUYHV·(\HEULJKW

W0

9LROHW IORZHUEUHZ

JS

(GUDP (OEHQ·V%DVNHW )HEIHQGX .HOYHQWDUL /DWKD /LFKHQ*ORULRVD

F) W6 F) W7 W) P'

*UHHQ PRVVLQJHVW :KLWHURRWEUHZ %URZQ URRWEUHZ 6LOYHUEHUU\DSSO\ %URZQVWHPEUHZ *UHHQ OLFKHQDSSO\

JS JS JS JS VS JS

0HQGVERQH +HDUWVWLPXODQW[VSHHGIRU UQGKU 5HVWRUHVKHDULQJ +HDOV VWDQGQGGHJUHHEXUQVKLWVUHVXOWLQJIURPEXUQV WR55VYVGLVHDVHFXUHVFRPPRQFROGVDQGKHDOV KLWV 'RVH R],OOXPLQDWHV UDGIRU KUV%ODGHVVKDUSHQHGRQLWFOHDYH VWRQH

0LUHQQD 0LUHWDU·V&URZQ

F0 W0

,

*UHHQEHUU\LQJHVW :KLWH IORZHUDSSO\

JS JS

0RRN 1HOWKDQGRQ 3HOHGKHO

W0 W6 P'

3XUSOHEHUU\LQJHVW JS *UHHQ VWDONLQJHVW JS 7DQ PXVKURRPLQJHVW JS

+HDOV KLWVLQVWDQWO\ 6WRSVEOHHGLQJLQ UQGV3DWLHQWFDQQRWPRYHDSSUHFLDEO\ ZLWKRXW ZRXQG UHRSHQLQJ /YODQWLGRWHIRUUHVSLUDWRU\SRLVRQV%ODFN&ORYHU-HJJD8UDDQDHWF ,QGXFHVYRPLWLQJLQ PLQV ,PPHGLDWHO\LQVWLOOVFDUHIUHHFKHHUIXOQHVV3UWRFRPEDW DQGEULQJV OXFNWRDOOQRQFRPEDWUROOV IRU KUV +HDOVKLWV

5HZN

W'

,

%URZQ QRGXOHEUHZ

VS

5RVH7UHH

P'

5HG QHFWDULQJHVW

JS

6KHQ

W)

*UHHQ OHDILQJHVW

JS

6LOUDHQ 6LQGROXLQ 6SOD\IRRW *RRGZRUW

P6 P6 P)

*UHHQSRZGHULQJHVW VS VS %OXH IORZHUEUHZ %ODFNVHHGVEUHZ JS

6XUDQLH

W)

%URZQEHUU\LQJHVW

JS

7HOGDOLRQ 7KXUO 7RXFK*UDVV

P' W', P7

*UH\EDUNDSSO\ %URZQFORYHEUHZ *UHHQJUDVVDSSO\

J3 VS FS

7XOD[DU
F6 W6

*UHHQ OHDIEUHZ *ROGSROOHQLQJHVW

JS VS

5HGXFHV LQIODPPDWLRQ&XUHVLQIHFWLRQ +HDOV KLWV%UHZNHHSV ZNV 6KLYHOVZKHQWRXFKHGE\2UFVIODWWHQVZKHQWRXFKHGE\0HQVWDQGVVWUDLJKW ZKHQWRXFKHGE\'ZDUYHVWDQJOHVLQWRFXUOLFXHVZKHQWRXFKHGE\D:L]DUG UHPDLQVLQQDWXUDOGURRSLQJVWDWHZKHQWRXFKHGE\(OYHVUHWDLQVVKDSHIRUXS WRKUDIWHUFRQWDFW 6WRSVDOOEOHHGLQJZLWKLQ UQGV $OORZVDFXWHVPHOODQGWDVWH IRUKU

)RRGGULQN

&RGH

$)

)RUP3UHS

&RVW

(IIHFW

%OXH3LQH1XWV &KDSEHHFKQXWV &UDP

F& P' ³

6HHGEUHZLQJHVW 1XWURDVWLQJHVW %UHDGLQJHVW

VS FS VS

W' &XUO\EDUN +LFNRU\1XWV P' )XUU\2DN$FRUQV *UDSHOHDI0DJQROLD 0HDG ³

1XWLQJHVW

FS

'RVHR]VHHGVHHGV GD\·VQXWULWLRQ$FLGLFWDVWH 'RVHR]QXWQXWV GD\·VQXWULWLRQ 'RVHR]ELVFXLW1RUWKURQ:D\EUHDGELVFXLWV GD\·VQXWULWLRQ &RPSOHWHO\WDVWHOHVV ZNZHLJKVOEV 'RVHR]QXWQXWV GD\·VQXWULWLRQ

$FRUQLQJHVW 0HDGLQJHVW

FS JS

/HPEDV

³

%UHDGLQJHVW

W' P'

0XVKURRPLQJHVW 3XUSOH5RRWLQJHVW

JS JS

P'

$FRUQEUHZLQJHVW

FS

³

%UHDGLQJHVW

JS

/HPVDQJ 6DUDK 3RNHVKKHDG 6PRRWK2DN$FRUQV 7ZLGGHOEDQQRFNV

´0LUPHOHOOHQµJLYHVWRVSHOOVRQREMHFWVFRDWHG&DSDEOHRIFOHDQVLQJD ERG\RIDQ\SRLVRQZKLOHSDWLHQWLVVWLOODOLYHEXWKHDOLQJRQO\DVHIIHFWLYHDV WKHKHDOHU)XOOHIIHFWRQO\LQWKHKDQGVRIDQ(OI:LOOQRWNHHSRUJLYHOLIH $OVRDQLPSRUWDQWLQJUHGLHQWLQ(OYLVKORYHSRWLRQV /YODQWLGRWHIRUQHUYHSRLVRQV$QJXVDLZHDQG(JLO·V9LSHU9HQRP $VKJXUDVK5XWKLQDXUHWF $QDOJHVLF&DXVHVGURZVLQHVV $QWLFRDJXODQW ,QVWLOOFRQILGHQFHDQGVLQJHPLQGHGQHVVWRDOODFWLYLW\ LQWKH´JRRGRI KHDUWµGDUNQHVVDQGFRQIXVLRQWRDOODFWLYLW\ WRHYLOEHLQJVIRU KUV 6WXQUHOLHIUQG

'RVHR]DFRUQDFRUQV GD\·VQXWULWLRQ7DVW\ 'RVHSLQW'DUNUHG%HLMDEDUIHUPHQWHGOLTXLG SLQW GD\·VQXWULWLRQ &DXVHVLQWR[LFDWLRQDQGGUHDPVWRDOODFWLYLW\ IRUKUV 'RVHR]FDNHDQGOHDIZUDSSLQJ(OYHQZD\EUHDGFDNH GD\·V QXWULWLRQWR&RIRUWKHGD\DQGKHDOVKLWV ZNZHLJKV OE 'RVHR]SRUWLRQSRUWLRQ GD\·VQXWULWLRQ 'RVHOEURRWDJHGPRQWK URRW GD\·VQXWULWLRQIRUSHRSOH DFRUQV GD\·VQXWULWLRQ0XVWEHERLOHGIRUDIXOOGD\EHIRUHFRQVXPS WLRQ 'RVHR]FDNH0DGHRQO\LQ'DOH FDNH GD\·VQXWULWLRQ7DVW\

+(5%6(1&+$17(')22''5,1.$1'32,6216 &RGH

/YO

)RUP3UHS

&RVW

(IIHFW 55 IDLOE\ 55IDLOE\

³ ³

*UH\OLTXLGLQMHFW 5XVVHW SDVWHLQMHFW

JS JS

%ODFN&ORYHU

P'

%ODFNSROOHQLQJHVW

JS

%ODFN9LQH-XLFH

W&

%ODFNOLTXLGDSSO\

JS

%ODFNOLTXLGLQMHFW

JS

.LOOVLQ UQGV3DUDO\]HVLQ UQGV $UGRU1DWKDLUYHQRP8SSHUERG\SDUDO\VLVLQUQGVORVVRI FRRUGLQDWLRQWRDOODFWLYLW\ ,PPHGLDWHVHYHUHEXUQLQJLQOXQJVIROORZHGE\DFXWHFRXJKLQJVQHH]LQJIRU XSWR KUDIWHUH[SRVXUHKLWVWRDOODFWLYLW\ PLOGDOOHUJLF V\PWRPVVQHH]LQJFRXJKLQJWRDFWLYLW\ 3RZHUIXOHXSKRULDDQGLQDFWLYLW\IRU KUVPLOGHXSKRULDWRDOO DFWLYLW\ DQGQLJKWPDULVKKDOOXFLQDWLRQVIRU KUV )LVKEORRGFDXVHVKDUGHQLQJRIWHQGRQVLQDSSHQGDJHVPDNLQJWKHP XVHOHVV ZLWKLQ UQGV OLPEVDWWRDOODFWLYLW\IRUKUV VXIIHU KLWV SHUOLPE DIIHFWHG

P'

'XQQXWKXVNVDSSO\

VS

³

0LON\OLTXLGLQMHFW

JS

'LQ)XLQHQ )DOVHUHJ

W'

0RVVDSSO\LQJHVW 5HGSDVWHLQMHFW

JS JS

)RUHVW+HPORFN

W&

$PEHUVDSLQJHVW

JS

%ODGH +HPORFN

3RLVRQ $QJXVDLZH9HQRP $VKJXUDVK

%ULWKDJXUWK

&KDSEHHFK 9HQRP &RLUHDO9HQRP

W&

*UHHQSDVWHLQMHFW

JS

(JLO·V9LSHU9HQRP

³

&OHDUOLTXLGLQMHFW

JS

YVH\HV

³

&OHDUOLTXLGDSSO\

JS

-HJJD -HJJDUXNK

³ ³

%URZQ SDVWHLQMHFW %ODFNSRZGHULQJHVW

JS JS

/KXJXUWK

³

%ODFNEORRGDSSO\

JS

0LONZWUXPSHW

P'

%ODFNVHHGLQJHVW

VS

SROOHQ

P'

:KLWHSROOHQLQJHVW

VS

0XLOIDQD

W&

2UDQJHVDSLQJHVW

JS

1DWKUDFK 9HQRP

³

0LON\OLTXLGLQMHFW

JS

1LPQDXU

³

0LON\ OLTXLGLQMHFW

JS

F0

*UH\SDVWHLQMHFW

JS

*UHHQ OLTXLGLQMHFW

JS

5HGVDSDSSO\

JS

2QGRKLWKXL 2QGRNDPED

5LJDDQD

W'

5XWKLQDXU 6HUHJRUQ9HQRP

³

%URZQ VDOLYDLQMHFW JS 5HG OLTXLGLQMHFW

JS

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

+(5%6(1&+$17(')22''5,1.$1'32,6216

&RGH

/YO

)RUP3UHS

&RVW

(IIHFW55 IDLOE\55IDLOE\

³

*UH\SDVWHLQMHFW

JS

8UDDQD

W6

&UHDP\SDVWHLQMHFW

JS

:KLWHEHUULHG
W&

:KLWHEHUU\LQJHVW

JS

:ROIVWRRWK

W'

:KLWHSDVWHLQMHFW

JS

W'

*ROG IUXLWLQJHVW

JS

+LWKLJLULWK

W'

/HDIPLVWLQJHVW

JS

=DJDQ]DU

W0

%OXHOLTXLGLQMHFW

JS

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

3RLVRQ 6ORWD

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·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·VDELOLW\WRUHVLVW)RUSRLVRQVWKHHIIHFWLVVXEGLYLGHGLQWRDPD[LPXPHIIHFWZLWK55VWKDW IDLOE\ DQGD OHVVHUHIIHFWZLWK55VWKDWIDLO E\ 1RWH7KH*0VKRXOGWDNHQRWHWKDWWKHFRGHVOLVWHGDERYHIRUWKHVHKHUEVLQ DERYHDUHQRWLGHQWLFDOWRWKRVHIRXQGLQWDEOH WKHFRGHVLQ UHIOHFWWKHPRUHJHQHUDODYDLODELOLW\DQGKDELWDWRIWKHYDULRXVKHUEVWKRVHLQUHIOHFWRQO\WKHKDELWDWVDQGDYDLODELOLW\RIWKHKHUEVLQ (VJDURWKDQGLWVYLFLQLW\

',6($6(7$%/( 6RXUFH

/HYHO

,QFXEDWLRQ 3HULRG

&RQWDJLRQ )DFWRU

)OHDVEDFWHULD 7LFNV%DWVEDFWHULD 3HRSOHYLUXV /HHFKHVEDFWHULD 7LFNVEDFWHULD 0RVTXLWRVEDFWHULD

KUV ,KUV KUV GD\V GD\V GD\V

,OOQHVV $QJXUWK3ODJXH &\FOLF)HYHU *XUWKQDIXLQ 3ODJXH 4XDNLQJ )HYHU 6SRWWHG )HYHU
0D[LPXP 55IDLOXUH

7UHDWPHQW

$QJXUWK 6ZHDWLQJVHYHUHO\VZROOHQJODQGV IHYHUQDXVHDDUDVKDURXQGWKH DUPSLWVDQGJURLQEODFNSRFNPDUNV RQWKHIDFHDQGOLPEVDQGDURW WHQVWHQFKDOOODVWLQJGD\V FKDQFHRIVFDUULQJDQGORVV RIIURP 3UIURP $S

+LJKIHYHUDQGGHOLULXPRSHQVRUHV DURXQGWKHDUPSLWVDQGJURLQVHYHUH QDXVHDEODFNSRFNPDUNVRQWKHIDFH DQGOLPEVDQRYHUZKHOPLQJURWWHQVWHQFK DQGGHDWKLQGD\V OXFN

5HVWIHEULEXJHVIOXLGVVDOWV

&\FOLF)HYHU 6ZHDWLQJORZIHYHUDQGEOXUUHG YLVLRQODVWLQJGD\VWKHQD ZHHN UHPLVVLRQ IROORZHGE\ PRUHF\FOHVRIWKHVDPHV\PWRPV

+LJKIHYHUIRUGD\VIROORZHGE\ ZHHNUHPLVVLRQIRUF\FOHV FKDQFHRIEOLQGQHVVFKDQFHRI GHDWK

)HEULIXJHV UHVW

*XUWKQDIXLQ $V$QJXUWKEXWZLWKOHVVIHYHUD UDVKVSUHDGPRUHHYHQRYHUWKHERG\ DQGVHYHUHQDXVHDX ODVWLQJ KUV LQ KUV

$V$QJXUWKEXWZLWKPHGLXPIHYHU VRUHVVSUHDGPRUHHYHQO\RYHUWKH ERG\DQGYRPLWLQJRIEORRGXQWLOGHDWK

$V$QJXUWK

+LJK IHYHUFKHVW\FRXJKDQGYLROHQW VSDVPVIRUGD\VFKDQFHRI ORVVRISRLQWVIURP&R FKDQFHRIGHDWK

)HEULIXJHVPXVFOHUHOD[DQWV UHVW

&KLOOV VHYHUHIHYHULQIODPPDWLRQ RIPXVFOHVDQGMRLQWVWRQHDULPPR ELOLW\WRWRDOODFWLYLW\

)HEULIXJHV UHVW

%ORRG\YRPLWLQJDQGLQWHUQDOKHPPRUDJH ODVWGD\VIROORZHGE\ GD\VRI ZHDNQHVVFKDQFHRIGHDWK UHVW

)HEULIXJHV IOXLGV

4XDNLQJ)HYHU 6ZROOHQJODQGV IHYHUWUHPEOLQJ OLPEVLUULWDWHGPXFRXVPHPEUDQHV QRVHWKURDWHWF DQGFRXJKIRU GD\V 6SRWWHG)HYHU &KLOOVIHYHUSDLQLQPXVFOHVDQG MRLQWVDQGDUHGRUSXUSOHUDVK ODVWLQJGD\V DQGDSXUSOHUDVKODVWLQJGD\V FKDQFHRIWR$JDQG4XGXHWR ERQHGHWHULRUDWLRQFKDQFHRIGHDWK
.(< ,QFXEDWLRQ 3HULRG3HULRGIURPILUVWFRQWDFW ZLWK LQIHFWLRQVRXUFHXQWLO LQIHFWLRQV\PWRPVDSSHDU &RQWDJLRQ )DFWRU3HUFHQWDJHFKDQFHRIFRQWDJLRQIURPH[WHQGHGFORVHFRQWDFW$QJXUWK&\FOLF)HYHUDQG6SRWWHG)HYHUDUHRQO\FRQWDJLRXV LIWKH FDUULHUSDUDVLWHLVWUDQVPLWWHGWRDQRWKHUKRVW (IIHFWV0D[LPXP HIIHFWVDUH LQDGGLWLRQWRDOOPLQLPXPHIIHFWVH[FHSWIRULOOQHVVGXUDWLRQ 7UHDWPHQW,QGLFDWHVQRQPDJLFDOWUHDWPHQW6SHOOVDQGVSHFLDOKHUEVFDQEHDQHYHQJUHDWHUKHOS

35,&(6$1'(;&+$1*(

%HORZLVDEUHDNGRZQRIFRPPRQFRQYHUVLRQUDWHVDQGSULFHVEDVHGXSRQWKHFRLQRI(VJDURWKDQG'DOH$FKDUDFWHU·VVWDQGLQJRUORFDOFLUFXPVWDQFHPD\FDXVH IOXFWXDWLRQVDQGZKHUHEDUWHULVLQYROYHGDVLPSOHYDOXHFRPSDULVRQPD\EHUHTXLUHG)RUPRUHLQIRUPDWLRQUHIHUWRVHFWLRQ

5$7(62)(;&+$1*( (VJDURWK·V &RLQ :HLJKW &RLQ 0LHWDQPL R] +DHOIDPLHWDQ KPL mR] 0DHOPD mR] 'DOHV·V &RLQ &RLQ :HLJKW )HODGRHO IH mR] 0RHOPR R] +DHOIDPRHO KPR mR] $LUHQLS R] :RRGHOYHQ &RLQ &RLQ :HLJKW &HOHEDQFH R]

'DOH·V 'RUZLQLRQ·V &RLQ &RLQ IH VS IH FS WS KPR (VJDURWK·V 'RUZLQLRQ·V &RLQ &RLQ FS KV PD FS PD WS ³ ,WS (VJDURWK·V 'RUZLQLRQ·V &RLQ &RLQ PL VS

:RRGHOYHQ &RLQ ³ ³ ³ :RRGHOYHQ &RLQ ³ ³ ³ ³ 'DOH·V &RLQ IH

'ZDUYHQ ,+LOO ES ES VWS 'ZDUYHQ ,+LOO ES VWS VWS ³ 'ZDUYHQ ,+LOO FS

&RLQ 0RULD VS ³ ³ &RLQ 0RULD ³ ³ ³ ³ &RLQ 0RULD VS

*RQGRU·V &RLQ VS ES ³ *RQGRU·V &RLQ ES ³ ³ ³ *RQGRU·V &RLQ VS

$UWKHGDLQ·V &RLQ VS FS KF $UWKHGDLQ·V &RLQ FS FS KF ³ $UWKHGDLQ·V &RLQ VS

127(6 &RLQVRI(VJDURWK(VJDURWKPLQWVDRXQFHVLOYHUSLHFHPLHWDQ DQGDmRXQFHFRSSHUSLHFHPDHO $GGLWLRQDOO\WKHODUJHUPLHWDQLVIUHTXHQWO\FXWLQ

KDOIWRPDNHWZRmRXQFHKDHOIDPLHWDQV7KHUDWHVPL VS KPL PDPD FS &RLQVRI'DOH'DOHPLQWVDmRQFHVLOYHUSLHFHIHODGRHO DRXQFHFRSSHUSLHFHPRHO DQGDRXQFHLURQSLHFHDLUHQ $GGLWLRQDOO\WKHODUJHU

PRHOLVIUHTXHQWO\FXWLQKDOIWRPDNHWZRmRXQFHKDHOIDPRHOV7KHUDWHVIH VS PRPR FS KPR LS )RUIXUWKHUFODULILFDWLRQKHUH LVDTXLFNUHIHUHQFHFKDUWUHODWLQJWKHFRLQVRI(VJDURWKDQG'DOHWRWKH DPL@ IH PR PD LS ES PR PD LS FS PR PD LS FS RUWS >PR@ PD LS &RLQVRI'RUZLQLRQ'RUZLQLRQPLQWVRQO\RXQFHVWDQGDUGFRLQVLQJROGVLOYHUFRSSHUDQGWLQ7KH'RUZLQLRQVLOYHUSLHFHLVFRQVLGHUHGHTXLYDOHQW LQYDOXHWRWKHPLHWDQ7KHUDWHV JS VS VS FS FS WS &RLQVRIWKH:RRGHOYHV7KH:RRGHOYHVPLQWEXWDVLQJOHFRLQRQYHU\UDUHFRPPHPRUDWLYHRFFDVLRQVSUHIHUULQJWREDUWHUZKHQH[FKDQJLQJJRRGV 7KHFHOHEDQ6´VLOYHUKDOI LVDYHU\ODUJHZHLJKLQJRQHDQGRXQFHV FH VS &RLQVRIWKH'ZDUYHV7KH'ZDUYHVRIWKH,URQ+LOOVSURGXFHIRXUFRLQVDQGEDVHWKHLUH[FKDQJHV\VWHPXSRQDJROGVWDQGDUGUDWKHUWKDQWKHXVXDO VLOYHUVWDQGDUG 7KHXQVXOOLHGEXWYDULDEOHPHWDOFRQWHQWDFFRXQWVIRUWKHSHFXOLDUGLVSDULW\LQZHLJKWEHWZHHQWKH RXQFHJROGPD]XOGDU.K ´JROGLVVXHµ WKH RXQFHHOHFWUXPDJROGVLOYHUDOOR\ ]LJXOGDU.K´VLOYHU\LVVXHµ WKH RXQFHEURQ]HJKDODGDU.K´FRSSHU\LVVXHµ DQGWKH q RXQFHVWHHOJKXODGDU´VWHHOLVVXHµ 7KHUDWHV JS HS HS VS ES ES VWS VWS KF &RLQVRIWKH'ZDUYHV0RULD6´%ODFN&KDVPµ PLQWVFRLQVRIZHLJKWVVLPLODUWRWKRVHIURPWKH,URQ+LOOVDQGLVDOVRRQDJROGVWDQGDUG0LWKULOLVD OLJKWPHWDOVRWKH0RULD·VPLWKULO6´JUH\EULOOLDQFHµ SLHFHLVDVODUJHDVLWVVLOYHUSLHFHDQGWKUHHWLPHVDVWKLFN%HFDXVHRILWVUDULW\IROORZLQJWKH DEDQGRQPHQWRI'ZHUURZGHOI1R´'ZDUIGHOYLQJµDND0RULD.KD]DGGP LQ7$WKHSULFHRIPLWKULOLQFUHDVHVZLWKHDFKSDVVLQJ\HDU LQWKH´FLYLOL]HGµUHDOPVE\WKHHQGRIWKHDJHWKHRIILFLDOH[FKDQJHUDWHLQ*RQGRULVJSZKLOHLQ$UWKHGDLQLWEULQJVRUPRUH ~RXQFHJROG SLHFV,QWKH:LOGHUODQGVWKHPHWDOLVQHYHUWUHDWHGDVDWUXHFXUUHQF\DQGLVHVVHQWLDOO\XVHOHVVH[FHSWLQFHUWLDQZLOOSRSXODWHGORFDWLRQHJ'DOH DQGWRDOHVVHUH[WHQ(VJDURWK 'XULQJWKLVODWHUHUDPLWKULOLVRIWHQXQDYDLODEOHRQWKHFRPPRQPDUNHWSDUWLFXODUO\DIWHUWKH IRXQGLQJRI(UHERULQ 7$,ZKHQWKH'ZDUYHVRIWKH/RQHO\0RXQWDLQEHJLQWRVWRFNSLOHWKHFRLQV &RLQVRI*RQGRU*RQGRUSURGXFHVDRXQFHJROGDRXQFHVLOYHUDRXQFHEURQ]HDQGDRXQFHFRSSHU7KHUDWHV JS VS VS ES ES FS*RQGRU·VVLOYHUSLHFHLVFRQVLGHUHGWREHHTXLYDOHQWWRWKHPLHWDQWKURXJKRXW5KRYDQLRQ $UWKHGDLQPLQWVRQO\RXQFHVWDQGDUGFRLQVDOWKRXJKLWLVFRPPRQSURFWLFHWRFXWWKHVHLQWRmRXQFHKDOYHVRUHYHQ {RXQFHTXDUWHUV JS VS VS FS FS KF KF TF

*RRG6HUYLFH

35,&(6,17+(/$.(72:1$5($ /RQGDURWK (VJDURWK &HOHEDQQRQ

'DOH

1RWH &KHHVHSRUULGJHEUHDGSWRIEHHU &KRZGHUVWHZSLHEUHDGSWRIEHHU 0XWWRQYHQLVRQIRZOILVKYHJHWDEOHVEUHDG FKRZGHU VWHZSLHIUXLWRUIUXLWSDVWU\SWRIZLQH ,QGULQNLQJKRUQRUHDUWKHQZDUHPXJ )HUPHQWHG 6HUYHGKRWRUFROG/RFDOEUHZ /RFDOYLQWDJH2IWHQZDWHUHGGRZQRUVSLFHG 'RUZLQLRQLPSRUWFKHDSHUYDULHW\ :RRGHOYHQYLQWDJH5RVHSHWDOVDQGKRQH\VXFNOH 1R´PLOLWKUDJµ DGGHG ZNQRUPDOVSRLODJHOEV ZNSUHVHUYHGOEV &RPPXQDOVOHHSLQJ 6HSDUDWHEHGRUSDOOHWDQGPHDOVGD\ OWZLWKEHHU QRUPZLWKEHHU 6HSDUDWHURRPDQGPHDOVDVDERYH 7KH9RGDJDUD]XQ FKDUJHVFSQLJKWIRUDURRPFSZLWKPHDOV ,QFOXGHVIRRGIRUEHDVW /DNHWRZQ VWDEOHVDUHPRVWO\RQ VKRUH

)22'$1'/2'*,1* /WPHDO %FS 1RUPPHDO %FS +Y\PHDO %FS

FS FS FS

%FS %FS %FS

LS FS FS

%HHUSW &LGHUSW 0HDGSW :LQHSW :LQHSW :LQHSW

%LS %LS %LS %FS VS ³

LS LS FS FS VS VS

%FS %FS %FS ³ VS VS

LS LS LS LS VS VS

5DWLRQV 7UDLO5DWLRQV 3RRUORGJLQJ $YHORGJLQJ

%FS %FS %LS %FS

FS FS FS FS

%FS %FS ³ %FS

FS FS LS FS

)LQHORGJLQJ

³

FS

%FS

FS

6WDEOH

%LS

LS

%FS

LS

75$163257 3RQ\0DUVK

%VS

VS

%VS

VS

+RUVHOW +RUVHPHG +RUVHKY\ +RUVH:DU

%VS %VS %VS ³

VS VS ³

%VS %VS ³ ³

VS VS VS JS

$XURFK 5DIW

%VS %VS

VS VS

%VS %VS

VS VS

6LULWKRUQ %RDWVPDOO %RDWPHG

³ %VS ³

³ VS VS

%VS ³

³· VS JS

%RDWODUJH

³

VS

³

³

6KLSVPDOO

³

JS

³

³

%VS

VS

³

VS

:DJRQ :$7(53$66$*(

PSK UQG FDQFDUU\OEVWR5LGLQJ PDQHXYHUV PSK UQG FDQFDUU\OEV PSK UQG FDQFDUU\OEV PSK UQG FDQFDUU\OEV PSK UQG FDQFDUU\OEVWRDOO5LGLQJ DQGPRXQWHGFRPEDWPDQHXYHUV PSK UQG FDQFDUU\OEV ·[ EDUUHOWUDQVSRUWPSK UQG FDQFDUU\ OEV0DQXHYHUHGZLWKSROHV :RRGHOYHQFDQRHPSK UQG FDQFDUU\OEV ·[ URZERDWPSK UQG FDQFDUU\OEV ·[ RQHPDVWHG´WKLUUXFµ IUHHERDUG PSK UQG FDQFDUU\OEV ·[ RQHPDVWHG´FQHDUUDµ IUHHERDUG PSK UQG FDQFDUU\OEV ·[·RQHPDVWHGEDUJH IUHHERDUG PSK UQG FDQFDUU\ OEV ·[ PSK UQG FDQFDUU\OEV

%DVHUDWH FSFSPLOH)URP(VJDURWKWRHDVWHUQVKRUHRI/RQJ/DNHPLOHV FS&RWVWRZPLOHV VS/LQGDOPLOHV FS &HOHEDQQRQPLOHV VS'DOHPLOHV VS7UDYHOOHUVDUHJHQHUDOO\H[SHFWHGWRDVVLVWLQSROLQJSRUWDJLQJHWF

(VJDURWK

'DOH

0DUNHW

1RWH

:($3216 $5025 $UURZV OEV

FS

FS

FS

%DWWOHD[H %URDGVZRUG &OXE &RPSRVLWHERZ

VS VS LS VS

VS VS LS VS

VS VS LS VS

%GXHWRTXDOLW\ :RRGHOYHQORQJERZDUURZVDUH LQIUHTXHQWO\DYDLODEOH LQ /DNHWRZQ 6LQJOHEODGHGZRRGFXWWHU·VD[H ORQJ :RRG .LQHKRUQ2%GXHWRTXDOLW\ :RRGHQUHFXUYHERZVDUH KDOIOLVWHG SULFHV

*RRG6HUYLFH

:W

35,&(6,17+(/$.(72:1$5($ *RRG6HUYLFH

:W

(VJDURWK

'DOH

0DUNHW

'DJJHU )ODLO +DQGD[H /DQFH /RQJERZ

VS VS VS ³ VS

VS VS VS VS VS

VS VS VS VS VS

/RQJNQLIH

VS

VS

/RQJVZRUG

VS

VS

0DFH 1HW ILVKLQJ 4XDUWHUVWDII 6KRUWERZ 6KRUWVZRUG 6OLQJ 6SHDU *DXQWOHWV *UHDYHV *UHDYHV +HOPOHDWKHU +HOPPHWDO /HDWKHUMHUNLQ /HDWKHUFRDW /HDWKHUDUPRU

VS VS FS VS VS FS ,VS FS VS VS VS VS VS VS VS

VS VS FS VS VS FS VS FS VS VS VS VS VS VS VS

&KDLQVKLUW &KDLQKDXEHUN 3ODWHFXLUDVV 6KLHOG

VS VS VS VS

VS VS VS VS

OE

FS VS VS FS FS FS FS FS

FS VS VS FS FS FS FS FS

FS VS VS FS FS FS FS FS

+ROGVVFDEEDUGVEHOWSRXFKHV 6WLWFKHGVRIWOHDWKHURUKLGHZLWKSXWWHHVLQZLQWHU :RROOLQHQRUOLQVH\ZRROVH\VRPHKDYHKRRGV /HDWKHURUZRROIHOW :RROOLQHQRUOLQVH\ZRROVH\FRYHUVKHDGDQGVKRXOGHUV :RROOLQHQOLQVH\ZRROVH\RUHVSHFLDOO\LQ'DOH KLGH :RRORUKLGH :RROOLQHQRUOLQVH\ZRROVH\WRPLGWKLJKRUORQJHU

OEV

FS VS VS FS FS FS FS FS FS VS

FS VS VS FS FS FS FS FS FS VS

FS VS VS FS FS

/HDWKHUKROGVOEVFX· :RRGKROGVJDOORQV :RRGKROGVJDOORQV :RROIXU EODQNHW /HDWKHUKROGV OEVFX· :RRGKROGVJDOORQV /LJKWV GLDPEXUQVKUV ,URQGDJJHU 6WDUWVILUHLQPLQXWHV ,URQJULSIDLOVRQ

&/27+,1* %HOW %RRWV &ORDN +DW +RRG /HJJLQJV 0LWWHQVJORYHV 7XQLFVKLIW (48,30(17 %DFNSDFN %DUUHOVPDOO %DUUHOODUJH %HGUROO %HOWSRXFK %XFNHW &DQGOH &KLVHO )OLQW VWHHO *UDSSOLQJKRRN

1RWH

+XQWLQJ NQLIH 5DUH 8VHIXO IRUFKRSSLQJZRRG \HZRUDVKVSHDUZLWKEURDGOHDISRLQW 0DQ\DUH:RRGHOILPSRUWV2IWKHVHDUH2%GXHWR TXDOLW\ VS /RQJEODGHG RQHHGJHGNQLIHVHD[ $VDVKRUWVZRUGLQ PHOHHDQGFDQEHWKURZQDVDGDJJHU VS ·ORQJ$VDEURDGVZRUGEXWYV$71R6/5/ DQG2%YV$7&K3O XQFRPPRQ :RRGHQKDQGOH VS FSVS ·[ 5HLQIRUFHGFRPEDWVXLWDEOHQHWVFRVW[OLVWHGSULFHV FS ,QFOXGHVVKHSKHUG·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

FS FS FS FS VS

35,&(6,17+(/$.(72:1$5($

*RRG6HUYLFH

:W

(VJDURWK

'DOH

0DUNHW

1RWH

+DPPHUZRRG +DPPHUPHWDO +DUQHVV /DQWHUQ 1DLOVLURQ 2DUSDGGOH 2LO IODVN 3HJVZRRG 3LFNLURQ 3LWRQVLURQ 4XLYHU 5RSH 5RSHVXSHULRU 6DFN 6DGGOH 6DZ 6FDEEDUG

FS VS VS VS FS FS FS LS VS FS FS FS FS FS VS VS FS

FS VS VS VS FS FS FS LS VS FS FS FS FS FS VS VS FS

FS VS FSVS VS FS FS FS LS VS FS FS FS FS FS VS VS FS

6KRYHO 7DUS 7HQW 7LQGHUER[ 7RUFK 9HOOXP :DWHUVNLQ :HGJHZRRG 086,&$/ ,167580(176 %DJSLSHV OEV %HOO %RGKUDQ

FS FS VS FS LS VS FS LS

FS FS VS FS LS VS FS LS

FS FS VS FS LS VS LSFS LS

FOXE PDFH /HDWKHULURQLQFOXGHVELWUHLQV /LJKWV GLDPXVHVRLO OEZRUWKORQJ :RRG ORQJTXDUWHUVWDII 3RWWHU\LQFOXGHV SWRLOKUUHILOO WRWDO )RUFOLPELQJZDUKDPPHU WRWDO 7UDGLWLRQDOO\PDGHRIEDGJHUKLGHKROGVDUURZV OHQJWKEUHDNVRQ OHQJWKEUHDNVRQ KROGVOEVFX· ,QFOXGHVVWLUUXSVEODQNHW :RRGDQGLURQUHTXLUHVSHRSOH :RRGIUDPHZUDSSHGZLWKOHDWKHUKROGV KHGJHG ZHDSRQ :RRG,URQEODGHGVSDGHDYDLODEOHLQ'DOHIRU VS :DWHUSURRIHGKHDY\OLQHQ·[ :DWHUSURRIHGKHDY\OLQHQ·[ SHUVRQFDS :RRGKROGVWLQGHUWRVWDUW ILUHV /LJKWV GLDPEXUQVKUV [FDOIVNLQ´SDSHUµVKHHWV +ROGVTWZHLJKVOEIXOO 'RRUVWD\

VS VS VS

³ ³ ³

VS VS VS

)OXWH +RUQ /XWH /\UH 5HEHF

VS VS VS VS VS

³ ³ VS ³

VS VS VS VSVS VS

5HFRUGHU 5HHG SLSHV 7DPERXU 7DPERXULQH :KLVWOH

VS VS VS VS VS

³ VS VS ³ VS

VS VS VS VS VS

+LGHOHDWKHUDLUEDJZRRGSLSHDQGGURQHVPLOHUDQJH ,URQYDULRXVVL]HVDQGSLWFKHVPLOHUDQJH GLDPWKLFNZRRGDQGKLGHGUXPSOD\HGZLWKD GRXEOHHQGHGVWLFNPLOHUDQJH :RRGORQJPLOHUDQJH 8VXDOO\DXURFKKRUQPLOHUDQJH :RRGDQGDQLPDOJXWVWULQJVPLOHUDQJH :RRGDQGDQLPDOJXWVWULQJVPLOHUDQJH :RRGYLROLQOLNHLQVWUXPHQWZLWKDQLPDOJXWVWULQJVDQG ERZPLOHUDQJH :RRGORQJPLOHUDQJH UHHGVRIGLIIHULQJOHQJWKODVKHGWRJHWKHUPLOHUDQJH GLDPWKLFNKLGHDQGZRRGGUXPPLOHUDQJH GLDPWKLFNPLOHUDQJH :RRGORQJPLOHUDQJH

127(6 %%DUWHU $IWHU7$ DQGWKHDUULYDORIWKH'ZDUYHVDW(UHERUPDQ\QHZDQGILQHUPHWDODUPVDQGDUPRUEHFRPHDYDLODEOHLQ'DOH

/25&219(56,21127(6

,I\RXSOD\WKHCfi[f]k_\I`e^j8[m\ekli\>Xd\\RXZLOOQHHGVWDWLVWLFDOLQIRRQWKHQRQSOD\HUFKDUDFWHUVPLOLWDU\IRUFHVDQGEHDVWV IUHTXHQWLQJ/DNHWRZQDQGLWVHQYLURQV7KLVPDWHULDOLVQRWSURYLGHGLQWKLVVXSSOHPHQW0DLODUHTXHVWWR,&(DORQJZLWKDVHOI DGGUHVVHGVWDPSHGHQYHORSHDQGZHZLOOVHQG\RXWDEOHVSUHVHQWLQJWKHCfIVWDWVIRU/DNHWRZQ13&VPLOLWDU\DQGEHDVWV ,&(·VDGGUHVV/DNHWRZQ/R532%R[&KDUORWWHVYLOOH9$ 86$ 1RWHWKDWWKHDGYHQWXUHVSUHVHQWHGLQ/DNHWRZQDOVRFRQWDLQVWDWVIRUORFNVWUDSVDQGPDJLFDOLWHPV7KHFRQYHUVLRQLQVWUXFWLRQV EHORZZLOOHQDEOH\RXWRWUDQVODWHD
/2&.6 D
75$36 7UDSVKDYHWZRFRPSRQHQWVEHVWVXPPDUL]HGE\WZRTXHVWLRQV KRZGLIILFXOWLVLWWRGHWHFWDQGGLVDUPWKHWUDS"DQG ZKDW DUHWKHUHVXOWVRIWULJJHULQJWKHWUDS" D

75$36 0$*(63(//6 D
%$5'63(//6 D
23(1&+$11(/,1*63(//6 D
$1,0,6763(//6 D
5$1*(563(//6 D
0$*,&,7(06 0RVWRIWKHWUHDVXUHIRXQGLQ0LGGOHHDUWKIDOOVLQWRWKUHHEURDGFDWDJRULHVZHDSRQVDUPRURUVSHOOFDVWLQJHQKDQFHPHQWD
$GGLWLRQDO&ULWLFDOV,Q D
0$*,&,7(06

*UDSSOLQJFULWLFDOV8SRQD8RU.UHVXOWZKHQKLWE\DZHDSRQWKDWGRHVJUDSSOLQJFULWLFDOVWKHWDUJHWPXVWUROOWKH GLFH' DQGDGGKLV$JLOLW\ERQXVLIWKHUHVXOWLVHTXDOWRRUKLJKHUWKDQWKHWRWDODWWDFNUROOWKHWDUJHWLVQRW HQWDQJOHGDQGPD\DFWQRUPDOO\LIWKHUHVXOWLVORZHUWKDQWKHWRWDODWWDFNUROOWKHWDUJHWLVHQWDQJOHGDQGPD\WDNH QRDFWLRQIRUWKHQXPEHURIURXQGVHTXDOWRWKHGLIIHUHQFHEHWZHHQWKHDWWDFNHU·VWRWDODWWDFNUROODQGWKHWDUJHW·V $JLOLW\PDQHXYHU )RUH[DPSOH-RV+DXUOWKH(DVWHUOLQJWKURZVKLVHQFKDQWHGERODDW8OILODVWKH1RUWKPDQZKRLVIOHHLQJ+DXUO·V0LVVLOH2%LV+LV ERODKDVDQ2%RIDQGGHOLYHUVJUDSSOLQJFULWLFDOV+DXUO·VSOD\HUUROOVD+LVWRWDODWWDFNUROOLV 8OILODV·GHIHQVHERQXVLV$GGLWLRQDOO\KHZHDUVDKHOPHWVHHEHORZ ZKLFKPHDQVWKDW LUHVXOWVRQWKH&RPEDW7DEOHGRQRW NQRFNKLPRXW &KHFNLQJWKH7DEOHZHVHHWKDW+DXUOKDVDFKLHYHGDLUHVXOW7KLVPHDQVZHPXVWDOVRFKHFNWKHUHVXOWRIWKHJUDSSOLQJDELOLW\RIWKHEROD 8OILODV·SOD\HUUROOVWKHGLFHDQGJHWVD7KH1RUWKPDQKDVDQ$JLOLW\ERQXVRIVRKLVWRWDOLVZKLFKLVOHVVWKDQ+DXUO·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´WDUJHWLQJDQRSSRQHQW·VZHDSRQµRU ´LIRSSRQHQWSDUULHVµRUVRPHRWKHUSDUDPHWHUVZKLFKDUHH[SOLFLWO\SUHVHQWHG:KHQHYHUVXFKDZHDSRQLVXVHGWRDWWDFN WKHLWHPGHVLJQDWHGE\LWVGHVFULSWLRQWKHDWWDFNHUVKRXOGUROORQWKHFROXPQRIWKH&RPEDW7DEOH7KH*0VKRXOG PRYHWKHFROXPQXVHGWRWKHULJKWIRUHYHU\2%'%SRVVHVVHGE\WKHWDUJHWLWHP,IWKHUHVXOWRIWKHUROOLVD8RUD .WKHWDUJHWLWHPLVGHVWUR\HGLPPHGLDWHO\$Q\QXPEHUUHVXOWVDUHLJQRUHG +RO\8QKRO\ZHDSRQV7KHVHDUHZHDSRQVSRVVHVVLQJWKHVSHFLDOIDYRURID9DODRUD0DLDSXUHRUIDOOHQ 0RVWKDYHD UHSXWDWLRQDQGDUHNQRZQRQVLJKWE\WKHLUZLHOGHUV·HQHPLHV+RO\ZHDSRQVDFWDVZHDSRQV2I6OD\LQJYHUVXVDOOEHLQJV DOLJQHGZLWK6DXURQRU0RUJRWK8QKRO\ZHDSRQVDFWDVZHDSRQV2I6OD\LQJYHUVXVDOOEHLQJVLQHPQLW\WR6DXURQRUKLV HYLOPDVWHU7KLVERQXVLVFXPXODWLYHZLWKDQ\PRUHVSHFLILFVOD\LQJDELOLWLHVVXFKDV2I6OD\LQJXQGHDG $5025

D
0DQ\LWHPVWKDWHQKDQFHVSHOOFDVWLQJGRVRE\JUDQWLQJWKHLUXVHUVSHFLILFVSHOOV7RFRQYHUWWKHVSHOOVRIVXFKLWHPVIURPD
,7(062)127(

9Xikkfb_J_X\

RFFXUDWVRPHFUXFLDODQGKLJKO\LQFRQYHQLHQWPRPHQW HDFK ZLOO UHODWH WR WKH FXUUHQW VLWXDWLRQ LPPHGLDWHO\ DW KDQG DQG HDFK ZLOO DSSHDU LQ VRPH QHDUE\ PLUURUOLNH 0267327(17 VXUIDFH 6KRXOG WKH H[SHULHQFH OHDG LQ DQ\ ZD\ WR WKH ER[ %$'5$17 RSHQHU·VGHDWKDQ\EORRGNLQZKRVXEVHTXHQWO\YLHZKLV 7KH EHDXWLIXOUHGGLVKRUDQJHORQJOHDISLQHZRRGVWHHU LQJRDULVLQWULFDWHO\FDUYHGZLWKKLJKO\VW\OL]HGDEVWUDFW FRUSVHZLOODOVRKHDUDKHDUWVWRSSLQJVFUHDPDQGZLWQHVV IDFHVXSDQGGRZQ LWVWZHOYHIRRWOHQJWK 0DQ\RIWKHVH WKH %DQ 6KDH HPHUJH IURP WKH GHFHDVHG·V JULPDFLQJ DQWKURSRPRUSKLFYLVDJHVVSRUWZLFNHGO\FXUYHGEHDNVRU PRXWK7KHVHIDPLO\PHPEHUVPXVWUHVLVWDVSHUWKH%DQ PX]]OHVZLWKDIHDUVRPHDUUD\RIIRUPLGDEOHORRNLQJWHHWK 6KDH·V LQLWLDO VFUHDP 2QO\ DIWHU WKH GLVSRVDO RI WKH PHDQWWRVHUYHDQDSRWURSDLFSXUSRVH%LWVRISRO\FKURPH RULJLQDOER[RSHQHU·VERG\ZLOOWKH%DQ6KDHUHWXUQWRLWV FRQWDLQHUODLU SDLQWVWLOOFOLQJWRVRPHRIWKHGHHSHVWFDUYHGUHFHVVHV 7KH %DQ 6KDH LV DWWULEXWHG ZLWK WKH GHVWUXFWLRQ RI 2ULJLQDOO\IDVKLRQHGIRUXVHRQWKHXQSUHGLFWDEOH6HD HQWLUH OLQHDJHV RI+LOOIRON ZKR KHHGOHVVO\ LJQRUHG WKH RI 5KQ %DGUDQW 6 ´)LUP &RXUVHµ D 'RUZLQDGDQ ZDUQLQJVRIWKHIRONOHJHQGV DQGKHOGWUDGLWLRQDOSXEOLF LWHPLVPDJLFNHGVRWKDWLW\LHOGVDPRGLILFDWLRQWR IXQHUDOVIRU%R[R·WKH%DQ6KDHRSHQHUV7KH%DQ6KDH DOO1DYLJDWLRQVNLOOPDQHXYHUV$GGLWLRQDOO\LWVXVHUPD\ ZLWKDVXFFHVVIXO8VH,WHPV$WWXQHPHQWUROO FDVWDOYO LWVHOILVVRPHDQFLHQWHYLOIUHHRI6DXURQ·V\RNHSHUKDSVLW &DOP :DWHUWZLFHSHUZHHNFDOPV DODNHRUVHD LQD LV DVVRFLDWHG ZLWK WKH EODVSKHPRXV PDOHYROHQFH RIWKH IRRWUDGLXVDVORQJDVWKHQDYLJDWRUFRQFHQWUDWHV ,W
7KHEDQQHULVHQFKDQWHGWRSURYLGHGWR2%DQG 0RUDOHIRUDOOIULHQGO\WURRSVZLWKLQDRQHKXQGUHGIRRW UDGLXVRYHUZKLFKLWLVKHOGDORIWIRUWKLVLWQHHGQRWHYHQ EH XQIXUOHG EXW WKLV LV WKH OHVVHU RILWV SRZHUV 7KH %UDWWRNK6KDHLVDOVRPDJLFNHGWR´SUHYHQWPLVKDSVµLQ DPXFKEURDGHUVHQVHIRUWKHHPEDWWOHGDUP\RUIRUWRYHU ZKLFKWKHIODJLVIXOO\XQIXUOHGEXWWKLVVHFRQGGZHDPRU PD\EHLQYRNHGRQMXVWWKUHHVHSDUDWHRFFDVLRQV$OUHDG\ WKHEDQQHUKDVEHHQXQUROOHGDQGGLVSOD\HGWZLFHLQWKH KHDWRIEDWWOHVRLWZLOOZRUNWKHIROORZLQJPLJKW\VSHOO RQO\RQFHPRUHDOHYHO0DVV&DOPIURPWKHID&DOP 6SLULWVOLVWZKLFKZLOOEHGLUHFWHGDJDLQVWWKHOHDGHUVDQG IURQWOLQHVRIDIRUFHDWWDFNLQJWKHIODJ·VEDWWOHKRVW)RU D
'$/(%2&$1''$/(%2&6+5(,1 $FDVNHWSDQHOHG ZLWK FKDURWKURQG 6 ´+DOOPDZµ ZKDOHLYRU\IURPWKHFRDVWRI8PEDUWKLVFRQWDLQHUZDV PDGHVKRUWO\DIWHUWKH'DOHPHQPLJUDWLRQHDVWRYHUWKH +LWKDHJOLU ,WV SDQHOV DUH FDUYHG ZLWKVFHQHV GHSLFWLQJ WKDW OHJHQGDU\ MRXUQH\ 6RPH ILIWHHQ LQFKHV E\ ILIWHHQ LQFKHVE\WHQLQFKHVWKH'DOHERFVKUHLQ1R´6KULQHRI WKH'DOHERFµ KDVJROGHGJLQJDQGDFODVSHQJUDYHGZLWK LQWHUODFHGSDWWHUQVDVZHOODVDJLOGHGEURQ]HORFNWKDWLV HQFKDQWHGVRWKDWLWLV([WUHPHO\+DUG WRSLFNRU RSHQZLWKRXWWKHPDWFKLQJNH\ 7KHUHFHSWDFOHLVIXUWKHUPDJLFNHGZLWKDWZHQW\ILIWK OHYHOGZHDPRUWKDWDOORZVQRRQHVDYHWKHSRVVHVVRURI WKHNH\WROLIWRUPRYHLW,WSURWHFWVLWVFRQWHQWVIURPDOO ZHDWKHU FRQGLWLRQV ILUH OLJKWQLQJ DQG VR IRUWKDGGL WLRQDOO\ WKH FRQWDLQHU LV YLUWXDOO\ LPSRVVLEOH WR EUHDN UHVLVWVDOOPDJLFDWOHYHO

7KHVKULQHWRJHWKHUZLWKLWVFRQWHQWVWKH'DOHERF1R ´%RRNRI'DOHµ DYROXPHZKLFKFRQWDLQVWKHDQQDOVRIWKH 'DOHIRONLVWKHVLQJOHPRVWUHYHUHGKHLUORRPIRUDOO ILYH RI WKH 1RUWKURQ FODQV RI 'DOH 7KH ERRN KDV EHHQ PHWLFXORXVO\NHSWVLQFHWKH.U\WKpRGFODQILUVWDUULYHGLQ 5KRYDQLRQ DQG WKH SRVLWLRQ RI %RFHUD 1R ´%RRN NHHSHUµ KDV WUDGLWLRQDOO\ EHHQ D KHUHGLWDU\ RQH XQGHU WDNHQE\DVFLRQRIWKH.U\WKpRGFODQ 7KHFXUUHQW%RFHUD0LQXLDO6´7ZLOLJKWµ WRRNRYHU WKHMREMXVWWZR\HDUVDJRDIWHUKHUSUHGHFHVVRUSHULVKHGLQ WKH3ODJXH6KHNHHSVWKHNH\WRWKH'DOHERFVKUHLQRQKHU SHUVRQDWDOOWLPHVDQGVHHVWRLWWKDWDOOLPSRUWDQWHYHQWV LQ 'DOH DUHGXO\UHFRUGHG7KH 'DOHERF LVVRPH WZHOYH LQFKHVE\WZHOYHLQFKHVDQGQHDUO\HLJKWLQFKHVWKLFN7KH YHOOXPSDJHVDUHRIWKHPRVWGHOLFDWHZHOOVFUDSHGDXURFK FDOIVNLQ DQG WKH WH[WLV LQWHUVSHUVHG ZLWK FDUHIXOO\SRVL WLRQHG LOOXPLQDWHG ´FDUSHWµSDJHVRIDEVWUDFWFXUYLOLQHDU GHVLJQ,PSRUWDQWVHFWLRQVDUHVLPLODUO\EHJXQZLWKLQWUL FDWHO\GHWDLOHGLOOXPLQDWHGFDSLWDOVZLWK]RRPRUSKLFLQ WHUODFHGGHFRUDWLRQV 7KHWRPHLVERXQGLQVWDPSHGDXURFKOHDWKHUFRYHUHG ZLWKDVKHHWRIUHSRXVVpJROGGHSLFWLQJWKHHPEOHPVRIWKH ILYHFODQVDQGDQLPDJHRIDSDVW7K\QRQKRUVHEDFNDQG LW LV IXUWKHUHODERUDWHG ZLWK JROG ILOLJUHH DQG LQVHW ZLWK JDUQHWVDQGFRORUHGJODVV7KHWRPHLVHQFKDQWHGVRWKDWLW FRQWDLQVDIDUODUJHUQXPEHURISDJHVWKDQLVDWILUVWHYLGHQW E\DQ\ZKREHKROGLW7KHERRNDQGLWVFRQWDLQHUDUHVWRUHG LQWKH.UDHWKLQJDVKXG1R´+RXVHRIWKH.UDHWKLQJDVµ LQ'DOHDQGIHZRXWVLGHUVDUHSHUPLWWHGWRVHHWKHP

)$1$+(1 )DQDKHQ 6 ´6OHHS %ULQJHUµ ´(\H 9HLOµ LV D ODUJH KRXUJODVV RU IDOPLU 6 ´6DQG -HZHOµ FRQVWUXFWHG IURP VOLJKWO\RSDTXHEORZQJODVVDQGZLOORZZRRGFDUYHGZLWK IROLDJHSRSSLHVZHHSLQJZLOORZEUDQFKHVDQG'LQ)XLQHQ PRVV ,QVLGH WKH UDWKHU IUDJLOH LWHP D ILQH ZKLWH VDQG UHFRUGVWKHSDVVDJHRIHLJKWKRXUV 2QFHDGD\LIDVXFFHVVIXO8VH,WHPV$WWXQHPHQWUROO LVPDGH WKHSRVVHVVRURIWKLV:RRGHOYHQGHYLFHPD\FDVW DVSHOOFRPELQLQJWKHHIIHFWVRIWKH)RUJHW,DQG6OHHS;VSHOOV RQZKRPHYHUKHFKRRVHVSURYLGHGWKHWDUJHWV DUHZLWKLQ DILIW\IRRWUDGLXV7KLVLVGRQHE\WXUQLQJWKHKRXUJODVV XSVLGHGRZQDQGXWWHULQJWKHZRUGFDUYHGRQRQHEDVHRI WKHREMHFW´HVWHµ4´6OHHSµ (OYHVDUHLPPXQHWRWKH GZHDPRUEXWPRVWRWKHUWDUJHWVIDLOLQJD5HVLVWDQFHUROO DJDLQVWDOHYHOKH[ZLOOIDOODVOHHSIRUWKHIXOOHLJKWKRXUV RUXQWLOWKH\DUHDZDNHQHGWRDOOVXFKDWWHPSWV ,Q HLWKHUFDVHWKHYLFWLPVZLOOKDYHQRUHFROOHFWLRQRIWKHWHQ PLQXWHVSULRUWRWKHLUORQJQDS

+(&*$7$ +HFJDWDDUFKDLF1R ´(QFKDQWUHVV·&DXOGURQµ LVDQ HQRUPRXVVSKHULFDOFDXOGURQIXOO\WKUHHIHHWLQGLDPHWHUDW LWVPRXWKDQGVWDQGLQJVRPHILYHIHHWKLJK&RQVWUXFWHG RIFDVWEURQ]HVKHHWVULYHWHGWRJHWKHUWKHPDPPRWKYHVVHO LVHQFKDQWHGWREHMXVWSRXQGVDPHUHTXDUWHURIZKDW LWPLJKWQRUPDOO\ZHLJKDQGLWFDQKROGRYHURQHKXQGUHG

FXELF IHHW RI OLTXLG 7ZR YHU\ ODUJH EURQ]H FLUFXODU KDQGOHVHDFKDIRRWLQGLDPHWHUDUHDWWDFKHGRQRSSRVLWH VLGHVDWWKHFDULQDWHGVKRXOGHURIWKHUHFHSWDFOHIRXUIHHW RIIWKH JURXQG 7KHFDXOGURQLVEHZLWFKHGVRWKDWLWZLOOERLODOOOLTXLGV DWWZLFHQRUPDOVSHHGIDVWHULIWKHSRWLVZDWFKHG DQG D VXFFHVVIXO 8VH ,WHPV$WWXQHPHQW UROO ZLOO DOORZ LWV SRVVHVVRUWRFDVWD9LVLRQ%HKLQGVSHOORQFHDGD\E\JD]LQJ LQWRLWVVZLUOLQJFRQWHQWV)RUD
085$/,Ê 0XUDOLs GHEDVHG4 ´*UHHQ-HZHOµ LVDVROLGJUHHQ JODVV EDXEOH WKUHH LQFKHV LQ GLDPHWHU $URXQG LW DUH ZUDSSHGWZRKDOILQFKZLGHJROGEDQGVZLWKUHSRXVVpULE GHVLJQVVHWDWULJKWDQJOHVWRHDFKRWKHUDQGDWWDFKHGWR DWKLFNJROGZLUHORRSGHVLJQHGWRDOORZVXVSHQVLRQRIWKH LWHP IURPDQRZQHU·VEHOW 7KHLWHPLVPDJLFDODQGZLWKDVXFFHVVIXO8VH,WHPV $WWXQHPHQW UROO DOORZV WKH FDVWLQJRIDQ (PRWLRQVVSHOO IURPWKHID0LQG0HUJHOLVWRQFHDGD\DWWKHQLQWKOHYHO RIHIIHFWLYHQHVV )RU DFRQIXVLRQ IHDUHWF@LQRQHLQGLYLGXDOZLWKLQIHHWIRUDGXUDWLRQ RI PLQXWHV ,Q DGGLWLRQ WKH EDXEOH DOORZV LWV RZQHU WR VHH WKH LQYLVLEOH EXW RQO\ ZKHQ DQG LIWKH LQGLYLGXDO DFWXDOO\ JUDVSVWKHLWHPLQKLVRUKHUKDQGVRLWLVTXLWHSRVVLEOH WKDWWKLVSRZHUPD\JRXQGLVFRYHUHG2QFHWKHSRVVHVVLRQ RIDQ$GDQVHHUOLYLQJLQWKHVKDGRZRI(UHERUPLOOHQQLD DJR0XUDOLsZDVSODFHGLQWKHFDYHUQVDWWKHKHDUWRIWKH /RQHO\0RXQWDLQZLWKLWVRZQHU·VERG\,WKDVVLQFHEHHQ PRYHGWRMRLQ DFROOHFWLRQRIRWKHUJUDYHUREELQJV LQ D GDUNVOLP\FDYHUQHYHQIXUWKHUEHQHDWKWKHORQHSHDN :85063(5( 7KH WUDGLWLRQDO ZHDSRQ RI'DOH·V7K\Q :XUPVSHUH 1R ´'UDJRQ 6SHDUµ LV DQ KHLUORRP RIWKH .U\WKpRG FODQDQGLVFXUUHQWO\LQWKHSRVVHVVLRQRIeRGHU,WLVDQ HLJKWDQGDKDOIIRRW ORQJ 'tUZRRGVKDIW LQODLG ZLWK D

JROG DQG VLOYHUDEVWUDFWFXUYLOLQHDUVHUSHQW GHVLJQ7KH ZHDSRQ FDSSHG ZLWK D VLOYHU\ZKLWH DGDUFHU EURDGOHDI EODGHDOVRLQODLGZLWKJROG JLYHVLWVZLHOGHUD2% LQFRPEDWDQGLV´RIVOD\LQJµ'UDJRQV

327(17 %(.60$ $GLVWLQFWO\QRQGHVFULSWVWUDZEURRP %HNVPD%6 GHEDVHG 1R ´%URRPµ ´%HDWLQJURGµ LV QRWHZRUWK\ RQO\ZLWKUHJDUGWRLWVLPPHQVHVL]H7KHZRRGHQKDQGOH LV IXOO\QLQH IHHWORQJ DQG VRPHWKUHHWR IRXU LQFKHV LQ GLDPHWHU7KHVWUDZVDYHUDJHDQRWKHUWKUHHWRIRXUIHHW ERXQGWRWKHKDQGOHZLWKKHPSWZLQHWKH\DGGDQRWKHU WZRIHHWWRWKHWRWDOOHQJWKRIWKHREMHFW $ILWWLQJWRRODQGZHDSRQ IRUWKHWZRKHDGHGVKH 7UROO6NHVVDWKLVLWHPZLOOVZHHSRXWDQ\URRPWKDWLW ILWVLQWR RILWVRZQDFFRUGZKHQHYHU´%HNVPDµLVVSRNHQ DORXG 7KH QDPH LV FUXGHO\ VFUDWFKHG LQWR WKH XSSHU SRUWLRQRIWKHEURRPVWLFNDQGLWPXVWEHVDLGEDFNZDUGV LQRUGHUWRVWRSWKHVZHHSLQJ)RU6NHVVDDQGRWKHUVZLWK 6WUHQJWKVFRUHVRIRUDERYH WKHREMHFWDOVRVHUYHVDV D2%FOXESULPDULO\EHFDXVHRILWVVL]H

%8=$.7+$ 7KLVNQHHOHQJWKR[KLGHFRDWLVG\HGDEXUQWUHGFRORU DQGLVHPEHOOLVKHGZLWKDWKLFNDWHQODUDEELW IXUFROODU DQGVKDUSVTXDUHLURQEXWWRQV2I(DVWHUOLQJPDNHLWLV VOLWXSWKHIURQWDQGEDFNQHDUO\WRWKHZDLVWWRDOORZLWV RZQHU WR PDQHXYHU RQ KRUVHEDFN PRUH UHDGLO\ 7KH %X]DNWKD/R ´'DUNUHG"µ LV HQFKDQWHGWRSURWHFWLWV ZHDUHUDVVRIWOHDWKHUDUPRU$76/ ZLWKD'% 7KHLWHPLVOLDEOHWREHDELWVPDOOIRUPDQ\1RUWKURQV

&8,7+$1* $FRPSRVLWHERZRIGHHSUHGGLVK ZRRGZKLWHERQH DQGEODFNVLQHZWKLV(DVWHUOLQJFUHDWLRQ LVGHVLJQHGIRU PRXQWHG FRPEDW DQG LQODLG DQG WULPPHG ZLWK JROGHQ VWHHO&XL7KDQJ6´%RZRI2SSUHVVLRQµ LVHQFKDQWHG WRSURYLGHD2%EXWLWIRUFHVLWVXVHUWRDOZD\VILUH DWWKHQHDUHVWSHUFHLYHGWDUJHWIULHQGRUIRH7KHLWHPLV IRXUDQGDKDOIIHHWORQJDQGZHLJKVWZRDQGDKDOISRXQGV &XUUHQWO\ WKH ERZ UHVLGHV LQ WKH EDQGLW ODLU DW '\Q 2GRULF+RIGLQJLVDZDUHRILWVQHJDWLYHTXDOLWLHVDQGZLOO SUHYHQWDQ\RIKLVRXWODZVIURPZLHOGLQJLW +LVKHQFK PDQ 'UDIHQG KRZHYHUFRYHWVERWK +RIGLQJ·VSRVLWLRQ DQGWKHEHDXWLIXO ZHDSRQ (1&+$17('&$77$,/ 7KLV UHHG\SODQWUHVHPEOHV WR WKH XQWUDLQHGH\H LWV GLVWDQW FRXVLQ WKH PDUVKUXVK DQG LWJURZV LQ VLPLODU HQYLURQPHQWV ,WV VWHP LV FDSSHG ZLWK D EURZQ IXUU\ IUXLWLQJVSLNHDQGWKHEURDGOHDYHVRIWKHSODQWDUHXVHG E\WKHIRONRI(VJDURWK DQG &RWVWRZWR ZHDYHEDVNHWV PDWVDQGFKDLUVHDWV 7KH HQFKDQWHG YDULHW\ PXVW EH SOXFNHG GULHG DQG PDJLFNHGVRWKDWLWZLOOQRWGHFD\DQGVRWKDWDQ\RQHZKR VWUDGGOHVLWDQGUHSHDWVWKHSKUDVH´%RUUDPERUUDP$ZD\

P\ZLQGHOVWUDZµZLOORYHUWKHFRXUVHRIWKHQH[WHYHQLQJ JURZ D ORQJ DQG OX[XULRXVO\ IXUU\ HUHGFDWK PRXQWDLQ OLRQ WDLOWKHVDPHFRORUDVWKHKDLURQWKHSRRUYLFWLP·V KHDG 7KHWDLOLVQRWKDUPIXODQGDQLPDJLQDWLYHLQGLYLGXDO PLJKWHYHQILQGWKHH[WUDDSSHQGDJHDERRQ EXWVKRXOG LWEHVSRWWHGE\DQ\RIWKHUHJLRQDOLQKDELWDQWVWKHYLFWLP LVOLDEOHWREHVKXQQHGULGLFXOHGRUHYHQO\QFKHGE\WKH IHDUIXO DQGVXSHUVWLWLRXV1RUWKURQV &KDQJHRI.LQGVSHOOVZLOOKDYHQRHIIHFWRQWKHSUHVHQFH RIWKH WDLO EXW 1HXWUDOL]H &XUVH DQG 5HPRYH &XUVH VSHOOV YHUVXVOHYHO ZLOOFDXVHWKHWDLOWRVKULQNDQGGLVDSSHDU DQG 1HXWUDOL]H 'LVHDVH8QGLVHDVHVSHOOV ZLOO FDXVH WKH DS SHQGDJHWRVKULYHOXSDQGGURSRII

)RGGLUEXFWKDVEHJXQWRGHFRPSRVH LWLVQRZFRYHUHG ZLWKYHUGHJULVDQGOHDNVWKURXJKVHYHUDOVPDOOKROHVLQLWV EDVH 1HYHUWKHOHVVWKHSDLOUHWDLQVLWVHQFKDQWPHQW$Q\KRUVH RUSRQ\HWF IHGLWVGDLO\PHDOIURPWKHEXFNHWZLOOEHDEOH WRDFKLHYHDWRSYHORFLW\RQHVSHHGIDFWRUFDWHJRU\KLJKHU WKDQQRUPDO7KHHQFKDQWPHQWZRUNVMXVWRQHGD\LQVHYHQ

*$50$+7 $YHU\VWRXWWKUHHLQFKHVLQGLDPHWHU DVKVSHDUZLWK DVRFNHWHGVWHHOEURDGOHDISRLQW*DUPDKW1R´3RZHUIXO 6SHDUµ LVQRWHZRUWK\DOVRIRULWVXQXVXDOVWUHWFKRIQLQH IHHWDIXOOIRRWOHQJWKLHUWKDQWKHW\SLFDO1RUWKURQVSHDU 7KHZHDSRQKDVVWHHOUHLQIRUFHPHQWVDWLQWHUYDOVDORQJLWV VKDIWDQGUHTXLUHVD6WUHQJWKRIRUDERYHCfIRU (5(*5,0 KLJKHU WRXVHEHFDXVHLWLVVREXON\+RZHYHU*DUPDKW·V (UHJULP 6 ´7KRUQ 1HW +RVW RI7KRUQVµ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

FULWLFDOIURP .XKG]DRQJVWDQGVD FKDQFHRIFRQ WUDFWLQJWHWDQXVWUHDWDVDOHYHOSRLVRQZLWKIDLOXUHWR UHVLVWUHVXOWLQJLQHYHQWXDOVSDVPVDQGWKHSDUDO\VLVRIDOO YROXQWDU\PXVFOHV IRU0RJVKLDOVRUXEVZDUJGXQJRQ WKHZHDSRQ :KHQ.XKG]DRQJLVODXQFKHGDWDQRSSRQHQWDVLWV QDPHVXJJHVWVQXPHURXVKROORZPHWDODWWDFKPHQWVUDWWOH DQG ZKLQH ZLWK HDUVSOLWWLQJLQWHQVLW\7KHPDJLFRIWKH LWHPSURYLGHVLWVZLHOGHUZLWKD2%LQPHOHHFRPEDW DQGDOORZVWKHLQIOLFWLRQRIDVHFRQGDU\3XQFWXUHFULWLFDO RIHTXDOVHYHULW\LQDGGLWLRQWRWKHSULPDU\FULWLFDO)RU D
GHSLFWLQJPRXQWHGZDUULRUVLQEDWWOHZKLFKJLYHWKHKHOP D VLOYHU WLQW 7KH H\HEURZV QRVH ORQJ PXVWDFKH DQG PRXWKRQWKHUDWKHUJURWHVTXHIDFHPDVNDUHJLOGHGDQG WKHUHLVDVPDOOFUHVWUHVHPEOLQJDKRUVH·VKHDGLQWKHIURQW FHQWHURIWKHREMHFW&XUUHQWO\WKHKHOPLVLQWKHSRVVHV VLRQRI'DOH·V7K\QeRGHU

=81*$79(5$1 7KH=XQJDWYHUDQ1R´7RQJXHWZLVWHUµ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´0DVWHU·V&DSµ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e21 (VJDURWK LW LV FXUUHQWO\ LQ WKH SRVVHVVLRQ RI2GDJDYLD 7KH $VVHQSUpRQ LV D WZRDQGDKDOILQFK GLDPHWHU ZKRZHDUVLWDWIHVWLYDOVFHUHPRQLHVDQGZKLOHFRQGXFW ULQJVKDSHG ´TXRLWµ EURRFK RI VLOYHU FORLVRQQp ZLWK LQJKLVGDLO\EXVLQHVVLIWKHZHDWKHULVIDLU JDUQHWJUHHQJODVV ZKLWHVKHOO DQG JROG ILOLJUHHSDQHOV ZRUWKFORVHWRVLOYHUSLHFHV7KHLWHPLVLQWHQGHGWR 321<586+ (DFKSRQ\UXVK1R´'REELQOD\IHUµ LVDWXIWHGWKUHH EHXVHGDVDFORDNSLQDQGDIIOLFWVLWVXQIRUWXQDWHZHDUHU IRRWORQJKROORZJUDVVOLNHVWDONRIWKHPDUVKUXVKSODQW UHVLVWYHUVXVDOHYHOFXUVH VRWKDWWKHSRRUIRROFDQQRW URXJKO\VLPLODUWRDFDWWDLO ZKLFKKDVEHHQHQFKDQWHGVR VSHDN DW DOO RQO\ EUD\ ORXGO\ DQG REQR[LRXVO\ OLNH D WKDWWKHSODQWZLOOQRWGHFD\:KHQLWLVVWUDGGOHGDQGWKH GRQNH\7KHQDPHRIWKHLWHP$VVHQSUpRQ1R´'RQ SKUDVH´%RUUDPERUUDP$ZD\P\ZLQGHOVWUDZµLVVSR NH\%URRFKµ LVHQJUDYHGLQVPDOOUXQHVRQWKHEDFNRIWKH NHQ DORXG WKHUXVK ZLOO WUDQVIRUP LQWR DWDPH ULGHDEOH SLHFHDKLQWWRWKHEURRFK·VQDWXUH PDUVKSRQ\/HYHO6L]H06SHHG)0)+LWV 7KHKH[PD\RQO\EHOLIWHGLQRQHRIWZRZD\VWKURXJK $71R'%$WWDFN0%D/7V FDSDEOHRI WKHXVHRIPDJLFHLWKHUD1HXWUDOL]H&XUVHRU5HPRYH&XUVH FDUU\LQJXSWRSRXQGV7KHUXVKZLOOUHPDLQLQSRQ\ VSHOOZRXOGEH HIIHFWLYH³WKH EURRFKUHVLVWVDWOHYHO IRUP IRUXS WR IRXUKRXUV RUXQWLO LWV ULGHU UHSHDWV WKH RULIWKHLWHPLVVWROHQIURPWKHSRVVHVVLRQRIWKHFXUUHQW PDJLFSKUDVHDORXG ZKLFKHYHUFRPHVILUVW$SRQ\UXVK RZQHUDQRWDOWRJHWKHUXQOLNHO\RFFXUUHQFHFRQVLGHULQJ PD\RQO\EHXVHGRQFHDGD\ WKHEURRFK·VREYLRXVYDOXH 7KHXQOXFN\RZQHURIWKHSLQ ZLOO EHXQDEOHWRSDUWZLWK WKHSLHFHDQGZLOOIHHOFRP 5267,/ SHOOHGWRZHDUWKHEURRFKSURPLQHQWO\GLVSOD\HGHYHQWR $Q KHLUORRP RIWKH .U\WKpRG FODQ RI'DOH WKLV ZDU WKH H[WHQW RISXUFKDVLQJ DQG ZHDULQJ D FORDN VROHO\WR KHOPHWRIVWHHO LVDQDQFLHQW$GDQLWHPZKLFKJUDQWV LWV IODXQWWKHEUHDVWSLQ ZHDUHUWKHSURWHFWLRQRIDIXOOKHOPZLWKRXWDQ\VXEWUDF WLRQ WR 3HUFHSWLRQ VNLOO PDQHXYHUV ,W DOVR EHVWRZV WKH %(77%$**, SRZHURI´KRUVHPDVWHU\µXSRQLWVZHDUHUDOORZLQJD %HWWEDJJL 1R ´6OHHSLQJEDJµ LV D ZRROHQ EHGUROO ERQXVWRDOO%HDVWPDVWHU\5LGLQJDQG$QLPDO7UDLQLQJ IXOO\VHYHQIHHWORQJDQGOLQHGZLWKWKHJUH\IXURIDWLPEHU VNLOOPDQHXYHUVLQYROYLQJDKRUVH5RVWLO61R´+RUVH ZROI *RRVH GRZQ IURP ZDWHUIRZO UHVLGLQJ DORQJ WKH FDOPµ LV FRYHUHG ZLWK WLQQHG EURQ]H UHSRXVVp SODWHV

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·VDFWLYLW\

%52*',1%5(*(1 (DFK%URJGLQEUHJHQ1R´$UPULQJRI%URJGLQµ LV DKHDY\DUPULQJRIWZLVWHGUHGGLVKJROGHQJUDYHGZLWKD VLQJOHUXQHDQGPD\RQO\EHREWDLQHGDVDVSHFLDOJLIWRI WKH *UDPX] 7K\Q %URJGLQ ,W LV JLYHQ LQ UHWXUQ IRU D SDUWLFXODUO\YDOXDEOHVHUYLFHUHQGHUHG(DFKZURXJKWWRUTXH SRVVHVVHVDVXEWOHPDJLFUHVLVWYHUVXVOHYHO WKDWSUH YHQWVLWVZHDUHUIURPKDUPLQJ%URJGLQRUKLVLPPHGLDWH IDPLO\ EXW RQO\ LIWKH ZHDUHU LV DZDUH WKDW D SRWHQWLDO RSSRQHQWLVRQHRI%URJGLQ·VNLQ:HDUHUVRIWKHVHLWHPV DUHJUDQWHGJUHDWUHVSHFWE\WKH*UDPX]SHRSOH

*/$,'*$0021 $JDPHERDUGPDGHRI\HZZRRGSLHUFHGZLWKVHYHQ URZVRIVHYHQKROHVDQGDFFRPSDQLHGE\IRUW\VHYHQ\HZ SHJVFDUYHGWRUHVHPEOHVKHHSKHDGVDQGRQHSHJFDUYHG WRUHVHPEOHDZROI·VKHDG7KHIUDPHRIWKHERDUGLVFDUYHG ZLWKLQWHUODFHDQGIUHWSDWWHUQVDQGDWHDFKHQGWKHUHLVD KDQGOHRQHVKDSHGOLNHWKHKHDGRIDEHDUGHGPDQDQG RQHOLNHWKHKHDGRIDGUDJRQ7KH*ODLGJDPPRQ1R ´*DPHRI&KHHUµ LVXVHGWRSOD\DJDPHFDOOHG9XOIHQVNDI 1R´ZROIDQGVKHHSµ VLPLODUWR´IR[DQGJHHVHµ 7KHERDUGLVFXUUHQWO\RZQHGE\:DJJpRUQZKRNHHSV LWDWWKH9RGDJDUD]XQDQGIUHTXHQWO\XVHVLWWRZDJHUZLWK RWKHU WDYHUQJRHUV 7KH ERDUG LV PDJLFNHG WR JLYH DQ RZQHUZKRFDQILJXUHRXWKRZWRXVHLWZLWKDVXFFHVVIXO 8VH,WHPV$WWXQHPHQWVNLOOUROO DERQXVRIWRVXFK JDPEOLQJ

/2%%$1$ $Q LQWULFDWHO\ FDUYHG KLFNRU\ WRNHQ RID IHURFLRXVO\ PDZHGIOHDVRPHWZRLQFKHVRQDVLGHWKLV:RRGPDQ NQLFNNQDFN EHVSHDNV WKH FDSULFH ZLWK ZKLFK HYHQ WKH PRVWVNLOOHG1RUWKURQZRRGZRUNHUVRIWHQSO\WKHLUFUDIW 6KRXOG WKH OLJKWKXHG SLHFH EH SODFHG EHQHDWK RQH·V VOHHSLQJPDWEHGHWFWKHWUXHQDWXUHRI/REEDQD1R ´)OHD%DQHµ LVUHYHDOHGLWPDJLFDOO\UHSHOVDOOFRPPRQ LQVHFWVEHGEXJVPRVTXLWRHVIOHDVDQGWKHOLNH8QEH &$0+8) NQRZQVWWRLWVFXUUHQWRZQHUWKLVHQFKDQWPHQWLVODUJHO\ $GUDEHDUWKEURZQKXHZKHQQRWLQXVHWKLVXQDVVXP UHVSRQVLEOHIRUKHUVXUYLYDOWKURXJKWKH*UHDW3ODJXH6KH LQJ KRRG RI FRDUVHO\ ZRYHQ OLQVH\ZRROVH\ FRYHUV D NHHSV WKH SLHFH VWDVKHG LQVLGH D VPDOO EURZQ FKDPRLV ZHDUHU·VKHDGVKRXOGHUVDQGXSSHUWRUVRWLHVLQIURQWDW ZRROGUDZVWULQJEDJ/REEDQDQHHGQRWEHUHPRYHGIURP WKHQHFN DQG LVGHVLJQHGWRPDVNLWVZHDUHU·V YLVDJH LQ WKLVFRQWDLQHUWRHIIHFWLWVPDJLF GHHSVKDGRZ 7KHFRZO LV HQFKDQWHGWR DOORZLWVSRVVHVVRU ZLWKD 52612/86$9 VXFFHVVIXO 8VH ,WHPV$WWXQHPHQW UROO WR FDVW )DFDGHV 5RV1ROXVDY6D´%ORRGNQLIHRIWKH5RV&ODQµ1R RQFHDGD\RYHUKLVRUKHUKHDGIDFHDQGVKRXOGHUV)RU ´'RPHFJ5RVµ LVDFXUYHGVWHHOGDJJHUZLWKDKDQGOHRI D

Y:$1)/$+87$ $ZHOOFUDIWHGSLSHIRUWKHVPRNLQJRI:HVWPDQVZHHG 6´*DOHQDVµ WKHSXUSRVHRIWKLVREMHFWZLOOEHXQIDPLO LDUWRPRVWLQKDELWDQWVRI5KRYDQLRQ6ZDQIODKXWD1R ´6ZDQ )OXWHµ DPLVQRPHU LVVFXOSWHG IURP WKHJORVV\ UHGGLVKZRRGRIWKHRLRODLUs4´(YHUJUHHQµ DFRQLI HURXVWUHHQDWLYHWR$UWKHGiLQWKDWEHFDPHH[WLQFWZKHQ WKHIRUFHVRI$QJPDUWRUFKHG$QQ~PLQDVDQGLWVKLQWHU ODQG LQ7$ 7KHSLSHLVVKDSHGWRUHVHPEOHWKH JUDFHIXOFXUYLQJQHFNRIDVZDQUHFDOOLQJWKH(OYHQVKLSV RIWKH *UH\ +DYHQV 6 ´0LWKORQGµ &DUYHG ZLWK WKH IHDWXUHV RIWKLV HOHJDQW ZDWHUIRZO LW LV DOVR LQODLG ZLWK ZLQJOLNHVFULPVKDZSODTXHVPDGHIURPWKHLYRU\WXVNRI DQ HUGHOLQJH6 ´1DUZKDOHµ RIWKH,FHED\RI)RURFKHO $Q\RQH ZKR VPRNHV 6ZDQIODKXWD ZLOO EH DEOH WR EORZ VSOHQGLGIODZOHVVVPRNHULQJVDWZLOO7KHSLSHZDVRQFH WKHSRVVHVVLRQRID'~QDGDQQREOHRI)RUQRVW(UDLQZKR ORVWLWWR$QJPDUHDQLQYDGHUV7KHSLHFHSUREDEO\FDPH WR5KRYDQLRQDFFRPSDQ\LQJDQ$QJPDUHDQZDJRQWUDLQ

7:,''(/%$112&. $WZD\GHOLFEDQQRFN1R´7ZRGD\%DQQRFNµ PRUH RIWHQFDOOHGD´WZLGGHOEDQQRFNµ LVDVPDOOXQOHDYHQHG FDNHPDGHIURPRDWVDQGEDUOH\,WKDVEHHQHQFKDQWHGWR SURYLGH VXVWHQDQFH IRU RQH SHUVRQ IRU WZR GD\V WKH FRQVXPHUZLOO KRZHYHUVWLOO QHHGWRTXHQFK KLVRUKHU WKLUVWHDFKGD\ (DFKFDNHZHLJKVRQO\KDOIDSRXQGDQG WKH\DUFYHU\PXFKLQGHPDQGE\WUDYHOHUVZKRNQRZRI WKHPEHLQJLQILQLWHO\PRUHWDVW\WKDQWKHW\SLFDOMRXUQH\HU·V IDUHRI1RUWKURQ FUDP ,QGHHG WZLGGHOEDQQRFNVDUH D IDYRULWH RIWKH ZHDOWKLHU FKLOGUHQ RI'DOH SDUWLFXODUO\ ZKHQ WKH\ DUH VSUHDG ZLWK JRDW·V EXWWHU DQG %HLMDEDU KRQH\ 7KHFDNHVDUHPDGHE\%URFNLQJWKHEDNHURI'DOHRU PRUHDFFXUDWHO\E\KLVPDJLFDORYHQ%URFNLQJKDVRQO\WR PDNHVXUHWKHUHDUHKRWFRDOV LQVLGHWKHEHHKLYHVKDSHG VWRQHRYHQHDFKHYHQLQJEHIRUHKHUHWLUHVWRKLVVOHHSLQJ FORVHWDQGWKHIROORZLQJPRUQLQJWZHOYHWZLGGHOEDQQRFNV PD\EHIRXQGDPRQJVWWKHFRDOVVWLOOZDUPDQGGXVW\ZLWK DVKHV+HDQGKLVZLIH6WDQFKHODDWWULEXWHWKHFDNHVWRWKH ZRUNRIWKH%URRQpRG1R´*URXQGIRONµ DOHJHQGDU\ GLPLQXWLYHSHRSOHZKRDUHVDLGWRSHUIRUPRGGMREVDERXW WKHKRXVHKROGDQGIDUPDQG6WDQFKHODLVFDUHIXOWRSODFH DVPDOOERZORIJRDW·VPLONRUFUHDPIRUWKHOLWWOHZRUNHUV MXVWLQVLGHWKHODUJHRYHQHDFKQLJKW,QWKHPRUQLQJWKH ERZOLVDOZD\VHPSW\LWKDVHYDSRUDWHG

7<1'(5%2; $ZHOOFRQVWUXFWHGJUHHQLVKWKRUQZRRGFRQWDLQHUWKUHH LQFKHV ORQJ WZR LQFKHV ZLGH DQG RQH LQFK WDOO WKH 7\QGHUER[KDVEHHQFOHYHUO\GRYHWDLOHGDORQJHDFKFRUQHU DQGWUHDWHGZLWKDFOHDUVXEVWDQFHWRLQFUHDVHLWVORQJHYLW\ DQGUHVLVWDQFHWRWKHHOHPHQWVLWZLOOQRWLJQLWHRUEXUQ 7KHOLGLVVHWLQJURRYHVDQGVOLGHVRSHQDQGDVWULSRIIOLQW KDVEHHQVHWIOXVKDORQJWKHOHQJWKRIRQHVLGH ,ILURQRUVWHHO LVVWUXFNDJDLQVWWKHIOLQWRQFHDQGWKH ZRUG´JUHQEODHVµ1R´*UHHQILUHµ LVVSRNHQWKHOYO VSHOO:RRGILUHVZLOOEHFDVW,ILURQRUVWHHOLVVWUXFNDJDLQVW

WKHIOLQWWKUHHWLPHVDQG´JUHQEODHVµLVVDLGDORXGDOHYHO 3URMHFWHG/LJKWVSHOOZLOOEHFDVW KRXUGXUDWLRQ 7KH OLJKWLVDQHHULHJUHHQLVKKXHDQGHPDQDWHVIURPWKHLQVLGH RIWKHER[7KH7\QGHUER[1R´7LQGHUER[µ LVSUHV HQWO\LQWKHSRVVHVVLRQRIWKHKLJKZD\PDQ'UDIHQG+H LVXQDZDUHRIWKHLWHP·VSRZHUKDYLQJQHYHUFRPSOHWHO\ UHPRYHGWKHVOLGLQJOLGWRVHHWKHUXQLFLQVFULSWLRQRQWKH OLG·VXQGHUVLGH´JUHQEODHVµ

:22'(/9(1&20%6 /LNHWKHLU1RUWKURQQHLJKERUVWKH:RRGHOYHVYDOXH WKHVPDOO LWHPV RISHUVRQDODGRUQPHQWWKDWDFFHQWW\SL FDOO\ XWLOLWDULDQ FORWKLQJ +HQFH 7KUDQGXLO·V IRON KDYH DFTXLUHGJUHDWVNLOOLQFUDIWVOLNHHPEURLGHU\DQGMHZHOU\ PDNLQJ(YHQWKHVPDOOHVWFORDNSLQEHOWFODVSRUWXQLF KHP GRHVQRWJRXQQRWLFHG %HFDXVHRIWKLV ORYHRIWKH VXEWOHLQSHUVRQDOGHFRUWKH:RRGHOYHVKDYHGHYHORSHG WKHFDUYLQJRIDQWOHUDQGERQHFRPEVWRDILQHDUW&RPEV IRUSODFHPHQWLQWKHKDLUDVPDQ\RIWKH)LUVWERUQZHDU WKHLUKDLUORQJ DQGDOVRIRUJURRPLQJDUHSOHQWLIXODQG LQIUHTXHQWO\ WKHVH KDLUSLHFHV DUH HQFKDQWHG ZLWK PLQRU GZHDPRUV 7KHVHWRIWKUHHFRPEV FDOOHG )LPILQGLO6 ´6OHQGHU +DLUDQWOHUµ DFTXLUHGE\WKHPHUFKDQW)UHDPXQG DQG JLYHQWRKLVGDXJKWHU%ORVRPDLVDQH[DPSOHRIWKHPRVW VLPSOHRIWKHVH(OYHQFRPEV6FXOSWHGIURPDVLQJOHODUJH ILDUD DQWOHU WKHVH WKUHH FRPEV RIGHVFHQGLQJ VL]H DUH FDUYHG LQ D 1RUWKURQ LQIOXHQFHG SDWWHUQ RILQWHUZRYHQ YLQHV DOLYH ZLWK ZRRGODQG VRQJELUGV :KHQ XVHG IRU JURRPLQJLQVHTXHQFHWKH\PDJLFDOO\UHPRYHDQ\WDQJOHV IURPWKHXVHU·VKDLUDQGZLOODOVRFDVWDOHYHO )UHVKHQRQ WKHILUVWKHDGRIKDLUWKH\DUHXVHGXSRQHDFKPRUQLQJ)RU D
21.0 ADVENTURE SUGGESTIONS: EXPLORING ESGAROTH 21.1 THE LITHE FAIR Each year, at the summer solstice, Esgaroth holds an enormous fair that attracts folk from hundreds of miles away. The fair normally lasts five days and spans the last few days of Forlithe, the holiday of Lithe itself, and the first few days of Mede. It is the equivalent of a superextravagant market day: the town is absolutely packed with vendors, street performers, and other travelers; many residents rent out rooms in their homes for the duration of the festival. Temporary camps spring up all along the lakeshore for those who cannot find accommodations in town. Business transactions are forbidden after dusk, but much feasting, drinking, dancing, and singing is conducted into the wee hours. Judges, presided over by the Maesta, evaluate baked goods and award prizes for the largest vegetables. On shore, contests for the fattest auroch, sheep, pig, fowl, and the biggest fish (caught on the first day) are conducted along with a pig race, an oxen pull, and ram fights. Brogdin, the Gramuz Thyn oversees a contest for the finest-looking horse, a lasso competition, and a cross country, barrel-jumping horse race in which Éothwyn has triumphed two times out of the past four. A swimming competition is held in the northern Woetsal in town, as well as a quarterstaff fight (with oars in a small boat), and a barrel-balancing event in which two contestants on a single, large barrel spin the cask and try to cast off their opponent into the chilly lake waters. A bare-knuckle boxing competition is set up on the Westside Wharf at the Witehuil (Breagla is the defending champion), and a “sailor’s race,” which involves rowing and shimmying up a cnearra’s mast, is coordinated by the Boed-bylgas. Many folk leave the town proper to watch the perennial favorites: the archery contest (spanning several days) and the long distance footrace (held on Lithe). Numerous other lesser events and opportunities for gambling can be found: various types of bowling, chess-like boardgames, and thimbelrig (No. “Shell Game”), to name just a few. Dagobert the peddler will likely be operating such a diversion. Lotto Nimbletoes the Stoor will be about picking pockets, as will Sculding’s gang, and the musicians Roenda and Ballin will be busking outside the Vodagarazun, near the bridge. Grambéort the puppeteer and his assistant Rant will set up shop on the Huwaerkyn near the main Woetsala, much to the delight of many of Lake-town’s youngsters, and the tumbling troupe of Théodolinda, Ramdal, Nenladil and Morreg will also be about pleasing the crowds. The married couple of Theuderic and Sigeberta are two of the better jugglers who will be performing in the streets.

Maethelgar will kick off the Fair, by announcing the guidelines: “Hear ye, hear ye. Gather ’round and listen. Here follows the rules of the Lake-town Lithe Fair: All keep the peace. No manner of folk may make any congregates or affrays among themselves whereby the peace of the Fair may be disturbed. All unsealed ale, beer and wine must be sold by the gallon, the bottle, the gierdhorn (No. “drinking yard”), the haelfagierd (No. “half-drinking yard”) or the pint. Baker’s bread must be suited to a person’s body. No manner of cook, pie maker, or huckster may sell or put for sale any manner of victual but that which is good and wholesome. No manner of person may buy or sell but with good coin, and that which has not been clipped in any manner. And any person whosoever finds themselves grieved, injured or wronged by any manner of persons in this Fair, they are to come with complaint before the Maesta, Odagavia, and no one else. Therefore now, at this Noon, let the Lake-town Lithe Fair begin. And the Maesta and Judges send every manner of folk good luck and this Fair fine weather and good continuance.” Setting: Midsummer’s day in Lake-town (T.A. 1640 is a leap year, and the fair is extra-special, both because it lasts an extra day and because it has not been held for several years, due to the Plague). Requirements: None, save a festive spirit and willingness to partake in the revelry. Aids: A vast assortment of skills, should the PCs choose to enter any of the athletic competitions. Aside from that, gambling talent and an ability to haggle over prices are helpful. Wise adventurers will keep an hand on their purses, for pickpockets abound. Rewards: Various prizes are awarded to the victors of each competition: 30sp and a blue cloth ribbon to the winner; a red ribbon to the runner-up. Booby prizes and special awards to crowd pleasers are also dispensed at the discretion of the Judges. The winner of the horse race, as it is sponsored by local Gramuz and not officially part of the town’s fair, receives a valuable steed in lieu of cash. Contest victors, especially attractive ones, will also have drinks bought for them, toasts made in their honor, and gain a bevy of starry-eyed followers.

21.2 GUARDIAN OF THE GIBBET One of the most widely repeated tavern tales of Laketown concerns a certain despicable criminal, Griming Galwa (No. “Spectre of the Gallows”). Murderer of the young daughter of the renowned late sixteenth century (of the Third Age) Maesta, Vodaga, Griming stole, slew, and burned the homes of townspeople of Lake-town indiscriminately. Unable to pay the wergild of any of his victims, he was condemned to death and perished on the gallows in 1597. Just before he was hanged, Griming swore vengeance upon the town’s populace. Nowadays, few of the superstitious Lake-folk would care to linger around the northern Woetsal (No. “Market Pool”) after dark, even if few place much credence in the tales of Griming. A small selection of townspeople do swear to have seen the criminal’s ghost lurking near the gallows. It’s

177

:i`d`e^>XcnX

^_fjk

DOVRWUXHWKDWRYHUWKH\HDUVVHYHUDOSHRSOHKDYHGLVDS SHDUHG LQ WKH YLFLQLW\ RIWKH JLEEHW 7KRVH SURIHVVLQJ NQRZOHGJHRIVXFKP\VWHULHVFODLP*ULPLQJZDONVVZRUG LQKDQGRQWKHPLVWLHVWHYHVZKHQWKHPRRQLVGDUN 6HWWLQJ&HUWDLQQLJKWVRQWKHGRFNVRI/DNHWRZQ QHDUE\WKHJDOORZVSRVWRYHUKDQJLQJWKHODUJHU :RHWVDO1R´0DUNHW3RROµ HVSHFLDOO\GXULQJWKH QHZPRRQ 5HTXLUHPHQWV$ORZOHYHOSDUW\ZLWKFRPEDWVNLOOV DSOHQW\7KHWKRURXJKO\HYLO*ULPLQJGRHVLQIDFW VWLOOKDXQWKLVSODFHRIGHDWKHDJHUWRPXUGHUDQG GUDLQWKHOLIHRIDQ\ZKRHQFRXQWHUKLP $LGV$KRO\PDQRUZRPDQVNLOOHGLQSXWWLQJWKH WRUPHQWHGGHDGWRUHVW6KLQULQFSULHVWRIWKH 9LVNQDN\QPLJKWEHVZD\HGE\DJHQHURXVFRQWUL EXWLRQWRKLVFDXVHWREOHVVWKHSDUW\DJDLQVWVSLULWV ZLWKD3URWHFWLRQVVSHOOIRUH[DPSOH 7KHVXSHUVWL WLRXV(RUPHQOLFPLJKWEHFRQYLQFHGWRHQUXQHD 3&·VZHDSRQZLWKDQ8QGHDGVOD\LQJVLJLO 5HZDUGV6OLPVLQFHIHZQRWDEOHSHUVRQDOLWLHVRI/DNH WRZQSODFHDQ\PHULWLQWKHWDOHVRI*ULPLQJ*DOZD

$*$,1677+( *581'+(5'

*DUEDJHGLVSRVDOKDVDOZD\VEHHQDGLIILFXOW\DW/DNH WRZQ'HVSLWHUHJXODWLRQVDQGHYHQILQHVIRUWUDQVJUHVVRUV WKH WHQGHQF\IRUPDQ\IRON LVVLPSO\WRJHW ULG RIWKHLU UHIXVHE\WLSSLQJ LWRIIWKHHGJHRIWKHWRZQ·VSODWIRUP

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p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

),5( :DQGHULQJRQWKHHDVWVLGHRIWRZQDIWHUQLJKWIDOOWKH 3&V DUH HQJXOIHG E\ WKLFN VPRNH 7UHDW DV D OHYHO UHVSLUDWRU\SRLVRQ ZLWK 5HVLVWDQFHUROO IDLOXUHE\ FKDUDFWHUVDUHVWXQQHG DQG DWIRU UQGVGXHWR FRXJKLQJDQGFKRNLQJZLWKDIDLOXUHRIWKH\VXIIHU WKHVDPHHIIHFWV IRUUQGV EXWUHPDLQ DWWRDOO DFWLYLW\IRU KUVDIWHUZDUGVDQGVXIIHUUHFXUULQJERXWV RIFRXJKLQJ ZLWK D IDLOXUH RI WKH\VXIIHUVPRNH LQKDODWLRQDVDERYHEXWDOVRWDNHKLWVDQGDQ ´$µ +HDWFULWLFDOZLWKDIDLOXUHRIWKH\VXIIHUDVDERYH EXWDUHDOVRUHQGHUHGXQFRQVFLRXVDQGZLOOGLHLQ UQGV XQOHVV UHVFXHG 7KURXJK WKH VPRNH WKH\ FDQ VHH IODPHVDZDUHKRXVHLVEXUQLQJ 6RPHRQHQHDUE\eRGRULFWKHGULKWHQ PHPEHU ZKR VPHOOHG VPRNH DQG FDPH WR LQYHVWLJDWH EHOORZV ´)LUH )LUHµUHSHDWHGO\DQGIDLQWO\WKURXJKWKHLQFUHDVLQJURDU RIWKHFRQIODJUDWLRQDQRWKHUVPDOOHUYRLFHFULHVIRUKHOS 7KHODWWHUYRLFH0HGLXPWRSHUFHLYH LVWKHJDPLQH 6SHDUZD ZKR IROORZHG DFORDNHG ILJXUH LQWR WKHZDUH KRXVHRXWRIFXULRVLW\DQGZDVXQZLWWLQJO\ORFNHGLQVLGH 7KHUHDUHQRZLQGRZVDQGWKHVWRXWGRRUZLWKD+DUG ORFN ZLOOWDNHKLWVEHIRUHLWJLYHV ,QVLGHWKHEXLOGLQJWKHVPRNHLVOHYHODQGWKHIODPHV DWWDFNDVD)LUH%DOO$OPRVWDVVRRQDVWKH3&VDUH EHVHWE\WKHELOORZLQJVPRNH LWSDUWV IRUDQ LQVWDQWWR UHYHDO D VKRUW FORDNHG DQG KRRGHG ILJXUH 8UGUDWK

dashing off into the night, away from the blaze. All manner of townsfolk will arrive to help battle the conflagration within several minutes, in response to Éodoric’s cries for assistance. Fire is the anathema of Esgaroth; all join together to combat the rare outbreaks. The blaze will be put out by morning with relatively little damage to anything but the warehouse, which is mostly destroyed. Urdrath, in payment for gambling debts to an employee of the unscrupulous independent merchant Agilulf, has been forced to set fire to the main warehouse of Agilulf s primary competitor, the merchant Kryn Riguntha. Agilulf, a man with a phenomenal memory, never forgets a grudge: in addition to being his business competitor, Riguntha spurned his romantic overtures over a year ago. The disturbed man has been plotting revenge ever since. Setting: Lake-town (after dark). Requirements: Quick thinking. Sprinting or Adrenal Moves (speed) would be useful in pursuing the arsonist; various unarmed combat skills would be helpful in subduing him. Lockpicking skill would help in rescuing Spearwa. Aids: Éodoric, being nearby, could assist the adventurers. If they lose Urdrath, the PCs could round a bend and bump into the urchin Ymb, who saw the cloaked figure fleeing. Rewards: The grateful thanks of all the townsfolk who witness or hear of the PCs’ actions (i.e., drinks bought for them at the Vodagarazun, etc.). The personal gratitude of Riguntha the shipper: 100sp per player character involved and an offer of employment as ship-escorts and/or warehouse guards.

being an agent of the Necromancer. The man appears to have been en route to Dol Guldur (S. “Hill of Sorcery”) when he was captured, for he carried encoded messages written on birchbark and hidden in the lining of his cloak. Of the messages, little can be deciphered aside from the names of the three main settlements the information seems to detail: Buhr Waldmahr (No. “Powerful horse/ Forest Steed Stronghold”) or Buhr Hléow (No. “Sheltering-Basin Stronghold”), the hillfort of the Accaldingas (No. “People of the Guardian Oak”), just twenty-two miles east of Buhr Widu; Buhr Ailgra (No. “Sacred Stag Stronghold”), the Ailgras (No. “Sacred Stag [People]”) clan corral of the Ailgarthas (No. “Friends of the Sacred Stag”) horse-folk tribe, located on the River Running Road (S. “Men Celduin”); and Esgaroth. Council with Galarthéow (No. “Lance Teacher”), Thyn of the Accaldingas, has revealed that the spy served in the drihten of Buhr Hléow, but disappeared after a series of murders there. The prisoner confessed to those slayings and to acting as a spy in Buhr Hléow, but died before the names of his contacts in Buhr Ailgra and Laketown could be extracted. Because the birchbark documents cannot be fully comprehended, the nature and the degree of the threat is not known, but it appears that someone in Lake-town with access to important military and trade information is passing it on. Odagavia desires someone from outside the town’s elite populace to quietly investigate. The details and scope of the investigation are up to the gamemaster. Setting: Lake-town. Requirements: An intelligent mid-level group skilled in subterfuge and diplomacy. Rigutha ships mainly cloth and dyes, so urging Aids: The gamemaster could choose to have the PCs PCs to accept her offer of employment would be to present when the messenger from Buhr Widu acquaint them with the value of dog whelk shellfish. arrives. They, along with Beadarof, Maethelgar, Also, if the PCs get into a minor scrape with the Gaervicca, Woffung, several high ranking merlaw at some point in the future, Éodoric could chants, some cnihten and town drihten members, arrange to have the charges dropped (“Now we’re witness the story. Right away, this should give PCs a even... ). good idea of who would have access to information Finally, if the PCs rescue Spearwa, the filthy and the Necromancer might find valuable. disheveled (but nevertheless, nimble and curiously The problem is that Woffung, the trusted jester/ endearing) child will follow them around incesbard for the town’s elite and the Necromancer’s santly. If treated well, she could be a useful source contact in Lake-town, is also witness to the courier’s of local gossip (and will keep the characters from dispatch, and will therefore be on his guard. A becoming victims of Sculding’s pickpocket gang); if magnificent agent who will go to any length to treated meanly, her infatuation could swiftly change protect his identity, Woffung may even destroy the to bitter malice. supply of birchbark paper he keeps at his residence if he feels threatened. 21.5 TO CATCH A SPY Rewards: The eternal thanks of Odagavia and the A messenger arrives from Buhr Widu (No. “Wood eternal hatred of the Necromancer. Future assassinaStronghold”), a town of the East Bight: Atagavia (No. tion attempts might even be considered if the player “Sunrise”), Huithyn (No. “Prince”) of the Waidungas characters have already earned a reputation as do(No. “Slaughterers”) clan, and Duinhir (S. “River Lord”), gooders. If Woffung is revealed, but survives, his the Gondorian Mund (No. “Regent”) stationed there, send new mission in life will be to wreck the PCs’ lives. greetings and unhappy news. No more than a fortnight ago, Odagavia will not offer a monetary reward initially, they apprehended a man who, under torture, admitted to

179

EXWFRXOGEHFRQYLQFHG,QDQ\HYHQWVXFFHVVIXO DSSUHKHQVLRQRIWKHVS\ZLOO DOORZWKHDGYHQWXUHUV WRJDLQWKH0DHVWD·HDUVRPHWKLQJGLIILFXOWWRDVVLJQ DSULFHWREXWKLJKO\XVHIXO

*(11,2)0(5(

D\nc`gj

´,I\RRJRDERRWGH0DUVKEH\RRZDU\RRO·*HQQL2IPHUH+HU ORQJDKDDULVOLNHUROOLQJDULYHUZHHGKHUFODZVDUHVKDUSHQHGPXVVHO VKHOOVVKHVPLOHVDJKDVWO\JULQRISLNHILVKWRRWKDV$Q·DIWHUGD\VHWVKH SURZOVVXFNLQJDWKHTXLFNEORRGRIFDUHOHVVIRONOLNHPDUVKPXGDIWHU &LWKLQJUDLQVµ $VDFRQVHTXHQFHWRUHVLGLQJQHDUWKH/DQJ0DULVKWKH 1RUWKURQ YLOODJHUV RI &RWVWRZ KDYH DOZD\V UHPDLQHG DFXWHO\ DZDUH RIWKH SRWHQWLDO GDQJHUV WR ORQH WUDYHOHUV DIWHUGXVNTXDJPLUHVHYLOGHQL]HQVHWF &KLOGUHQJURZ LQJXS LQ &RWVWRZDUHGLVFRXUDJHG IURP ZDQGHULQJRXW DIWHU GDUN ZLWK WDOHV RID KRUULEOH IDQJHG PRQVWURVLW\ QDPHG*HQQL2IPHUH1R´0RXWK0DZRIWKH6ZDPSµ ´1LJKWPDUH 0DZµ DQ DTXDWLF KRUURU WKDW VXFNV WKH EORRGRIFKLOGUHQDQGKRDUGVDVHFUHWWUHDVXUHFDFKH

6LQFHWKHUHRFFXSDWLRQRIWKHYLOODJHLQWKHZDNHRIWKH *UHDW 3ODJXH IRXUWUDYHOHUVSDVVLQJ WKURXJK WKH YLOODJH ZKR ZHUH FDXJKW LQ WKH 0DULVK DIWHU QLJKWIDOO KDYH GLVDSSHDUHG7DONDERXWLQYHVWLJDWLQJKDVQHYHUSURPSWHG DQ\GHILQLWHDFWLRQXQWLOWKHGHDWKRIDQDGROHVFHQWER\ WZR GD\V DJR 2USKDQHG GXULQJ WKH 3ODJXH +XF 6HH 6HFWLRQVDQG KDGPDQDJHGWRVXSSRUWKLPVHOI LQDVPDOOKXWDWWKHHGJHRIWKHYLOODJHDQGKLVGHDWKVWUXFN DFKRUG DPRQJWKH YLOODJHUVVLQFH KH ZDV FRQVLGHUHG D V\PERORI&RWVWRZSHUVHYHUDQFH:RUVHKLVPDQJOHGDQG UHQWFRUSVHZDVIRXQGVWUHZQWKURXJKRXWWKHFHQWHURIWKH YLOODJHLQYDULRXVSLHFHVDORQJZLWKELWVRIDZIXOVPHOOLQJ VZDPSYHJHWDWLRQDQGVHYHUDO LQGLVWLQFWEXWUDWKHUODUJH YDJXHO\PDQQLVK IRRWSULQWV 'LVWUHVVHGYLOODJHHOGHUV)HQQULFDQG)ODQDKHDULQJRI WKHDGYHQWXUHUV·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´*HQQL2IPHUHµ LVDFWXDOO\DODUJHJURXSRI LQFUHDVLQJO\DJJUHVVLYHPHZOLSVZKREDQGHG WRJHWKHUGXHWRWKHVFDUFLW\RIYLFWLPVGXULQJWKH 3ODJXH\HDUV7KHDGYHQWXUHUVPD\EHDEOHWRWUDFN RQHRIWKHFUHDWXUHVWRWKHYLFLQLW\RIWKHLUODLUVEXW LWLVQRWQHFHVVDU\IRUDQ\RQHLQWKHPDUVKHVDIWHU GDUNZLOOEHVXUURXQGHGDQGDWWDFNHG7KHFUHDWXUHV RSHUDWHLQDVXUSULVLQJO\FRRSHUDWLYHDQGZKROO\ VLOHQW DVVDXOWDQGZLOOXVHWKHSHULOVRIWKHWHUUDLQ WRWU\WRDPEXVKWUDSDQGRUVHSDUDWHDSDUW\ 5HZDUGV5HZDUGVIURPWKHYLOODJHUVZLOODPRXQWWR MXVWVSEXWRWKHULWHPVOLNHSRWWHU\MDUVRI SUHVHUYHVQHZO\ZRYHQFORWKZRYHQUHHGIORRU PDWVHWFZLOODOVREHRIIHUHG7KHPHZOLSV·WUHDVXUH ZLOORQO\EHORFDWHGLIWKHSDUW\ZDVDEOHWRWUDFNWKH FUHDWXUHVWRWKHSUR[LPLW\RIWKHLUODLUVDQGWKHQ RQO\LIDQ ([WUHPHO\+DUG 3HUFHSWLRQ PDQHXYHULVPDGHIRUHDFKFDFKH7KHILUVWFDFKHLV EXULHGLQWKHPXGQHDUDVPDOOVWRQHFDLUQDQGWKH VHFRQGZKLFKVKRXOGRQO\EHLQFOXGHGLIWKH PHZOLSVJURXSLVYHU\ODUJHLVKLGGHQLQWKHKROORZ WUXQNRIDZLOORZWUHH%RWKDUHDFFRPSDQLHGE\WKH SOHQWLIXO ERQHVRISDVWYLFWLPV

Cache 1 (2,425sp [mietan] total value): • large greyware cremation urn (containing the remainder of the booty) with impressed stamp decoration and a lid topped by a figure of a man seated and resting his elbows on his knees, 15 inches tall and 12 inches in diameter at its widest point (1sp) • 12 amethyst cabochon beads, once a necklace (8sp each) • gilded silver buckle, 2 inches by 2 ½ inches, inset with garnets and green and white glass (300sp) • silver quoit brooch, 3 inches in diameter, with zoomorphic interlace and niello inlay (35sp) • spool of silver wire (55sp) • 3 silver wire armrings (6sp each) • 2 silver pendants, 1 inch in diameter, with zoomorphic interlace and niello inlay (10sp each) • 2 twisted silver wire armrings (8sp each) • heavy twisted silver neck torque (45sp) millefiori glass rod, 4 inch length remaining (200sp) • heavy silver chain, 14 inches long (525sp) • fine silver chain, 22 inches long (330sp) • 13 assorted silver sheet offcuts of varying sizes (35sp, 35sp, 25sp, 25sp, 22sp, 20sp, 19sp, 18sp, 12sp, 8sp, 6sp, 4sp, 2sp) • 23 half-ounce Gondorian gold coins from Minas Ithil (25sp each) • lead sheet with a runic message scratched on it in Rhovanion Westron which reads: “Nitegesa” (No. “Night Terror”). The first character who reads this and fails a Resistance roll against a level 8 curse will begin to experience terrible nightmares and have great difficulty sleeping. After two days, she will be at -25 to all activity until cured. Cache 2 (4,375sp total value): • Foddirbuct (see 20.2), containing the remainder of the booty (625sp) • 2,500 silver mietan coins (1sp each) • 2,500 silver feladoel coins (½sp each)

21.7 EMISSARIES TO THE WOOD-ELVES Odagavia, Maesta of Esgaroth, seeks appropriate representatives to increase the volume of trade between the Wood-elves and the Lake-men to pre-Plague proportions once again. Setting: Travel from Esgaroth up the Forest River to Celebannon and finally to Aradhrynd. Requirements: Prior distinguished service rendered to prominent members of Esgaroth is a virtual necessity, in order to demonstrate the honesty and integrity of adventurers. Successful completion of the main adventures herein would certainly satisfy these requirements.

Odagavia will choose one character from the PCs’ party whom he sees as a natural leader and deems the most diplomatic of the group. This individual will act as the primary emissary and is to carry the formal document with Odagavia’s greetings and proposals to Thranduil concerning the Wood-elves’ Forest River tolls and a possible trade agreement. The adventurers are to travel first to Celebannon, where they will spend two days waiting for an audience with the Elven-king while being hosted by Ohtar (see Sections 14.0 and 19.1) the Master of the Raft-elf village. Camthalion, the second in command at Celebannon, will be considerably less cordial in greeting characters, for he believes some residents of Esgaroth may have been involved in the abduction of his daughter Narmirë (S. “Fire Flower”) by a Mannish raiding party while she was gathering fruit less than a year ago. Because of his position, Camthalion will be obliged to attend all the formal functions held for the adventurers, so PCs will have ample opportunity to rub shoulders with him. He will act distinctly chilly towards them, and it will be an extra effort for PCs simply to avoid an argument with him. However, if any PCs do make a particularly concerted attempt to be congenial, he may warm to them and ask their help in seeking information leading to Narmirë’s whereabouts or to revenge. Such an agreement could eventually lead to PC involvement in her attempted rescue (see ICE’s Mirkwood for details). Camthalion’s son, Celequar, would almost certainly insist on accompanying such a rescue party. From Celebannon the PCs’ party will proceed further up the Forest River to Thranduil’s magnificent cavern home, where they will be provided with sumptuous lodgings and wined and dined by Thranduil’s folk both in the cave complex and in grassy glades under a starry evening sky. Few ever experience such luxury. The adventurers will, however, be subject to persistent ridicule in the form of sarcastic songs parodying their alleged heroic exploits—a number of the Raft-elves are familiar with Volaf’s ridiculously exaggerated lays about any previous adventures (in Sections 15.0-17.0). Such jokes are meant to be playful, but they also serve a purpose. Should the PCs bristle, or, Araw forbid, actually allow any anger to come to blows, Thranduil will summarily dismiss the Esgaroth delegation. Time is something the Wood-elves are little concerned with, and the Elven-king will not rush back into potentially dangerous contact with chaotic post-Plague Lake-town, if he deems it is still too early to resume full-scale trade.

181

182

After all, he reasons, it was the Wood-elves who came to the aid of the starving and disease-ridden Lake-folk just two winters past, by generously donating much needed foodstuffs and other provisions. Thranduil feels strongly that Esgaroth remains in his debt. Aids: Great skill in diplomacy is a must, and savvy with trading practices is also helpful. Any friendly prior contact with the Wood-elves will also be a tremendous benefit. Dwarves will not generally be well received, but Odagavia knows this and will not be likely to send any. The Maesta of Esgaroth will provide a sealed scroll detailing potential terms of renewed trade and a diplomatic gift for the Elven-king, although an additional, carefully chosen gift from the PCs might go over well too. Public speaking, musical skills, magical ability, or any proficiencies which could serve as entertainment would be useful, and adventurers with skill in tactical games may be challenged by the Elven-king to a game resembling chess (it is natural for some sort of personal wager to be involved here as well). Wise characters will let Thranduil win, but this is almost certain to occur anyway (consider the Elvenking’s skill bonus is +104). Many of the Wood-elves will seek to make the emissaries look foolish; not out of malice, but merely because that is the whimsical nature of the Elven-folk. The adventurers may be tricked into downing large cups of very potent liquor; they may be offered roast mushrooms that induce belching; or they may be seduced by especially attractive Woodelves only to be spurned in front of a delighted group of their comrades. Some characters might be asked to participate in complicated or embarrassing or extremely long and tiring dances, or they might be challenged to contests of wit (riddles, tongue-twisters, etc.) or finesse. A fine example of the latter type is a drinking contest called Narving (S. “Firejack”), in which PCs attempt to down the contents of a huge chalice in as few giant sips as they can without getting singed by the burning “jack” afloat in the intoxicant (usually wine). Bets are typically made (loudly) before and during the competition; losers are frequently pressed into subsequent competitions “to redeem themselves”. The contest requires more talent than PCs might at first believe (some of the Wood-elves are quite adept at it), and contestants are liable to become drunk rather quickly. Clumsy folk may well end up with one or more painful and telltale burns upon their face, a mark that invites copious Elven jokes and ridicule (remember, the Firstborn do not scar

and take such wounds lightly). Thranduil will not be impressed by extremely drunk emissaries, but he will be pleased by a group that receives such jests in the lighthearted manner in which they are given. Rewards: A nice set of specially tailored, well-to-do clothing from Odagavia prior to the trip. The chance to sample prize vintages and delicious Wood-elven food of the highest quality. Also, a valuable diplomatic gift from the Elven-king (e.g., a Caromb—see Section 20.3), the grateful respect of Lake-town’s Maesta, and the friendship of the Wood-elves are all in order if the mission is successful. Odagavia will offer no monetary incentive (such an offer being an insult to the PCs’ generous nature, he will insist).

22.0 ADVENTURE SUGGESTIONS: EXPLORING THE REGION 22.1 HIGHWAY AMBUSH While traveling along the rough dirt Dorwinion Road bordering the eastern River Running Valley where the track skirts the eastern edge of a dense wood (predominantly third stage willow and elm trees and once part of Greenwood the Great), the adventurers spot a lone figure lying prone and unmoving ahead on the road. At closer range, the individual proves to be a beautiful, tall Northron woman with loosely-curled red-brown hair. As the adventurers approach to within 10-20 feet, the woman fumbles to prop herself up on one arm, glances up confusedly, murmurs a piteous, “Help...” and falls back onto her elbow. Something is clearly amiss. The PCs need not even make a Perception maneuver to determine that the woman, Raedwyn, is hurt; but those who make a successful Extremely Hard (-30) Perception maneuver may suspect that there is more to her than is at first apparent: she seems to be dramatizing her situation. A PC who makes a successful Sheer Folly (-50) maneuver will have the distinct feeling that the group is being observed from the woods along both sides of the way. Hofding and his entourage are well hidden in the surrounding underbrush (having used their camouflage skills to good effect): the bandit leader and Gilyn are on foot amongst the trees and undergrowth on the western side of the road; Gretta and Darian are on foot amongst the sparser bushes on the eastern side of the road. Raedwyn is actually a decoy to lure passersby off their horses. She will ask the apparent leader of the group for a drink of water, and then request assistance in getting to her feet. If pressed, she will say she was riding to Londaroth when her horse was startled by a snake. He reared, threw her to the ground, and bolted (observant PCs heading south may recollect that no riderless horse passed them).

$VWKHDGYHQWXUHUVDLG5DHGZ\Q 5RIULGHVRXWVRPH EHKLQGWKH SDUW\OHDGLQJ5DHGZ\Q·V KRUVH MXVWDV +RIGLQJJLYHVDVKULOO ZKLVWOHDQGVWHSVWRWKHURDGVLGH ZKHUHKHLVYLVLEOH,PPHGLDWHO\DIWHUZDUGV*LO\Q'DULDQ DQG*UHWWDVWDQGXSRUVWHSIURPEHKLQGWUHHVVRWKDWWKH\ DUHYLVLEOHDQGDPRXQWHG'UDIHQGOHDSVIURPWKHZRRG RUVRLQIURQWRIWKH3&V$OORIWKHEDQGLWVDUHDUPHG ZLWK ERZV ZKLFK WKH\KDYH WUDLQHGXSRQ WKH 3&V DQG +RIGLQJ XQFHUHPRQLRXVO\ GHPDQGV ´'URS\RXUZHDSRQV @WRFODPEHUXS OHQGLQJRQO\DWRWKH PLVVLOH2%VRI'DULDQDQG*UHWWD5DHGZ\QZLOOGUDZD VKRUW VZRUG IURP EHQHDWK KHU FORDN DIWHU +RIGLQJ·V DSSHDUDQFHDQGHLWKHUKROGLWDJDLQVWWKHWKURDWRIRQHRI WKHSDUW\WRLQVXUHWKDWWKHRWKHUVFRPSO\ZLWK+RIGLQJ·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·V UXPS7KHEDQGLWVZLOORQO\NLOOLIWKH\DUHIRUFHGWR(DFK EDQGLWKDVDKRUVHDQGDOOZLOOWDNHGLIIHUHQWURXWHVKRPH UHJDUGOHVVRIZKHWKHUWKH\DUHVXFFHVVIXOO\GULIWLQJEDFNRU IOHHLQJSXUVXHUV 6HWWLQJ7KH'RUZLQLRQ5RDGVRPHILIWHHQOHDJXHV VRXWKRI/RQGDURWK E\/LQGDOWKH ´DEDQGRQHGµ KRPHVWHDGDQGFDYHFRPSOH[DWRS'\Q2GRULF1R ´2GRULF·V+LOOµ LQWKHKHDYLO\ZRRGHGVSXURI 0LUNZRRGHDVWRIWKH 5LYHU5XQQLQJ 5HTXLUHPHQWV$ORZOHYHOJURXSWUDYHOLQJDORQJWKH 0HQ'RUZLQLRQZLWKUHDVRQDEOHWUDFNLQJDQG FRPEDWVNLOOV$ODUJHSDUW\RIWUDYHOHUVZLOOQRWEH DPEXVKHGE\WKHKLJKZD\PHQ $LGV*RRGSHUFHSWLRQVNLOOVDQGTXLFNWKLQNLQJ6NLOO LQFRQWRUWLRQPLJKWEHDQDGYDQWDJHIRU3&VZKR DUHWLHGXS'UDIHQG·VDUURJDQFHFRXOGSURYLGHWKH RSSRUWXQLW\IRUDQDPEXVKHGSDUW\WRUDOO\DQG UHVLVW

5HZDUGV7KHUHFRYHU\RIWKHLURZQSRVVHVVLRQVDQG UHYHQJH7KHUHODWLYHO\PHDJHUZHDOWKVWDVKHGDW '\Q2GRULFDQGWKHVSSHU:ROIVKHDGUHZDUG RIIHUHGE\/DNHWRZQ·V 0DHVWDIRUWKHFDSWXUH DOLYH RISURYHQKRUVHUDLGHUVRUEDQGLWVPLJKWDOVR SURYLGHLQFHQWLYHVIRU3&VWRSXUVXHWKHEDQGLWV

'<12'25,& '\Q 2GRULF ZDV RQFH WKH ZRRGODQG PDHGZH 1R ´0DQRU+RPHVWHDGµ RI2GRULFDQGKLVH[WHQGHGIDP LO\+HUHVLGHGKHUHDWRSDIDLUVL]HGDQGKHDYLO\ZRRGHG NQROOULVLQJVRPH DERYHWKHQHDUE\'RUZLQLRQ5RDG ZLWKKLVZLIHWZR\RXQJGDXJKWHUVPRWKHUDQGEURWKHU DQGZUXQJDSHULORXVOLYLQJIURPWKHODQGDVDZRRGFXWWHU DQG IDUPHU JDUQHULQJ ZKDW KHFRXOG QRW JURZ RUKXQW KLPVHOIIURPWKH QHDUE\ 5LYHU 5XQQLQJ %HFDXVH RILWV SUR[LPLW\WRWKHQHDUE\URDGMXVWDVWHHSEXWVKRUW PLOHFOLPE '\Q2GRULFZDVDVWRSRYHUSRLQWIRUIULHQGO\ ORFDOVRQWKHLUZD\WRPDUNHWDW/RQGDURWKRU(VJDURWK DQG 2GRULF·V IDPLO\ ZHOFRPHG WKH FRPSDQ\ XQWLO WKH RQVHWRIWKH3ODJXH /DWHLQWKHDXWXPQRI2GRULF·VEHORYHGZLIHZDV EHVHWE\WKH %ODFN3HVWLOHQFH 6KHSHULVKHGWKDW ZLQWHU DORQJZLWKERWKRIWKHFRXSOH·VFKLOGUHQ%\7KULPLOFHRI WKHIROORZLQJVSULQJWKHZLOGIORZHUVZHUHWKLFNXSRQWKH JUDYHV RI DOO ILYH RI 2GRULF·V IDPLO\ 7KH GLVWUDXJKW ZRRGVPDQ SDFNHG XS ZKDW OLWWOH KH VWLOO YDOXHG DQG MRXUQH\HG VRXWKHDVW +H WROG QR RQH DQG QHLJKERUV SUHVXPHG KHSHULVKHGZLWK WKH UHPDLQGHURIKLV IDPLO\

F[fi`Zk_\Yi`^Xe[

;peF[fi`Z

7KUHH\HDUVODWHUKHUHWXUQHGWRKLVDEDQGRQHGIDUPVWHDG ZLWK VHYHUDO FRPSDQLRQV DQG XQGHU WKH QHZ NHQQLQJ ´+RIGLQJµ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

%LGDKXG 1RZ GHVHUWHG WKLV ZDV RQFH WKH PDLQ UHVLGHQFHRI2GRULF·VIDPLO\%XLOWRIZRRGSODQNVWKHWDOO EXLOGLQJ·VWKDWFKHG URRIQRZEULVWOHVZLWK DQXPEHURI VDSOLQJVEXVKHVJUDVVHVDQGZLOGIORZHUV([LWVWRHDFKRI WKHZLWK\FRUULGRUEUDQFKHVDQGDVLQJOHHQWU\IURPWKH \DUGRQWKHVRXWKZHVWJDEOHGHQGRIWKHVWUXFWXUHDUHWKH RQO\ SRUWDOV 7KH ZRRGHQ 'XWFKGRRU WR WKH ODWWHU LV VZROOHQDQGQRORQJHUFORVHV ,QVLGHWKHELGDKXG1R´&RWWDJHµ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·VLQWHULRU DUHZRRGIUDPHGZDWWOHDQGGDXE7KHGRRUWRWKHZLWK\ FRUULGRU LV QDLOHG VKXW DOWKRXJK WKHRWKHUGRRUWR WKH \DUG RQ WKH VRXWK HQG RI WKH EXLOGLQJ LV RSHUDEOH +RIGLQJKDVUHPRYHGDOOWKHXVHIXOWRROVWR WKHFDYH7KHSODFHLVQRLV\EHFDXVHDWOHDVW IRXUVSDUURZV·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·KRUVHVDUHVWDEOHG KD\LVNHSWLQWKHORIW $ZRRGHQSLWFKIRUN UHVWVDJDLQVWWKHZDOORIWKHE\UHXVDEOHDVD 2%VSHDURUD2%SROHDUP/LNHWKH VKHGWKHVWUXFWXUHDEXWVWKHVODWHFOLIIEHKLQG LW$ODUJHRSHQLQJ DFURVVDQG KLJKLQ WKHURFNQH[WWRRQHRIWKHKRUVHVWDOOVOHDGV WRWKHFDYHKLGHRXWRIWKHKLJKZD\PHQ

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·V HQG WKH ZHVWHUQ +RUVH&DYH7KHIORRURIWKLVFDYHLVVWUHZQZLWKVWUDZ HQGRIWKHQRRNDOVRKDVDVWURQJER[RILURQERXQGRDN DQGIUHVKKD\LVSLOHGXSRQDURXJKZRRGIUDPHGHVLJQHG +DUGWRSLFN'UDIHQGKDVWKHVROHNH\ FRQWDLQLQJ WRNHHSLWRIIWKHJURXQG)LYHKRUVHVDUHVWDEOHGLQWKLV VSDQGFSFRSSHUULQJVVWUXQJWRJHWKHUFS FDYHUQ ZDUP IURP WKH KHDW RIWKHLU ERGLHV DQG WKHLU YDOXH 7\QGHUER[VHH 'UDIHQG LVXQDZDUHRILWV PDQXUH 7KH IORRU LV RIHDUWK DQG WKH

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

3UHWW\*ODGH$VPDOOEURRNH[LWVWKHURFNFOLIIQHDUE\ DQGEXUEOHVRYHUVKDUSURFNVKHUH2QWKHJUDVV\QRUWKHDVW EDQNRIWKHULOO EHQHDWK DJUHDW JQDUOHG PRVVFRYHUHG PDSOHWUHHILYHVPDOOVWRQHFDLUQVUHVWDWRSDVKRUWPRXQG )UHVKZLOGIORZHUVD0HGLXP3HUFHSWLRQPDQHXYHU GHWHUPLQHVWKH\ZHUHSLFNHGOHVVWKDQWKUHHGD\VDJR KDYH EHHQODLQEHIRUHWKHJUDYHVE\+RIGLQJZKRFRPHVKHUH VHYHUDO WLPHV D ZHHN +LV QHZ ORYH *LO\Q GRHV QRW EHJUXGJHKLPKLVPRXUQLQJ

:Xm\Xk;peF[fi`Z

186

enchantment) containing some costume jewelry (7 cp total value), a silver earring (½sp), 5 tiny purple amethysts (3 sp each), a silver millefiori brooch (50 sp), and one steel spur with inset jet cabochon (9 sp). 7. Corridor. This low ceilinged (6') passage is considerably dryer than the Living Cave (#5), and its limestone floor is partially covered with fine white dust. Raedwyn typically sleeps here, and those few belongings she doesn’t carry with her (a bedroll, three blankets, and so forth) are piled against the northwestern wall. An 18" natural step leading down to the Larder (#8) (Easy, +10, Perception maneuver to notice) might cause a misstep (+20 MBa attack) for the unwary or unfamiliar. 8. Larder. A chilly, dry cave usually kept dark, this alcove is crammed with foodstuffs of all varieties: kegs and bottles of ale, cider, wine, and olive oil; sacks of grains; dried and salted meats (including two green pheasants) hanging from the 14' ceiling; barrels of butter, apples, and olives; wheels of cheese; shelves full of pottery jars with spices, jams, honey, and sauces of every kind; bins of cram, legumes, chap-beechnuts, curly-bark hickory nuts, smooth oak acorns, tubers (including two sarah-pokes-her-head roots), and vegetables; and a large block of salt wrapped in burlap. A stepladder provides access to the shelves higher up. 9. Cool Sprawl. A 20-22' high stretch of cavern connecting the largest Glittering Cave (#10) with the cool dry Larder (#8), this area is used as sleeping quarters for the couple Darian and Gretta. They do little more than bed here, however, for the place gets very dank, especially in the winter and early spring, and especially near the depression below the 12" step down from the Glittering Cave (#10) (Easy, +10, to notice, anyone falling over it suffers a +15 MBa). Because of this, the couple sleep on a crudely made wooden platform covered with straw and six blankets tucked into a niche in the northern wall. 10. Glittering Cave. A large cave with a dripping ceiling of stalactites 26' overhead, this space is chilly in winter. Nevertheless, the slimy walls are truly wonderful to behold when the place is lit, for they sparkle even more brilliantly than the walls of the Living Cave (#5). A gently sloping floor deposits any runoff over the step to the Cool Sprawl (#9). Hofding and Gilyn sleep in the long, narrow (and dryer) crevasse running north from the west end of the cave. Like Darian and Gretta they bed upon a wooden platform, but use a real straw mattress and several pillows and blankets. Gilyn has rigged a curtain across the crevasse with a length of heavy maroon brocade. She has also secreted a blue velvet pouch (sewn shut) filled with gems (115sp total) in one of the pillows, in case she and Hofding (and her brother, Rof) are forced to flee and begin a new life. Additionally, two low 3' crawls off the east end of the cave (Very Hard, -20, to perceive) lead over a 3' drop to a 8' high alcove containing the bandits’ collective wealth. A shipping crate and an iron-bound chest (trapped with a blade hemlock-coated needle; Hard, -10, to disarm; with a lock that is Very Hard, -20, to pick; only Gilyn and Hofding have keys) contain:

Crate: • 2 bolts of silk (green, silver-grey; 50sp each) • 1 bolt of heavy brocade (purple; 120sp) • 12 bolts of linsey-woolsey (assorted hues; 1sp each) • 4 unsharpened low steel broadsword blades (+5OB potential; 25sp each) • 2 ermine pelts (winter; 10sp each) • 3 beaver pelts (5sp each) • 7 atenla pelts (winter; 2sp each) • 1 white fox pelt (winter; 50sp) • 3 Badger pelts (50cp each) Chest: • 42ip copper coins, totaling 844cp • silver coins in a leather sack, totaling 66½sp (including 3 celeban) • two elaborately painted Dorwinadan silk fans (10sp each) • 8 matching silver bracelets (3sp each) • an empty longknife scabbard of hammered bronze inset with amethyst and garnet (22sp) • 4 carved, multi-colored wax candles, each magically adds +25 to all Divination skill rolls, or alternately each can store a single lvl 1-2 spell to be recast when the candle is burned (great for storing and recasting concentration spells which last the duration of the candle’s life, about 1 hr.; 55sp each) • gold brooch with enamel cloisonné (40sp) • gold and silver cloak pin with inlaid millefiori glass panels (35sp) • a perfumed purple silk scarf (dog whelk dyed) with blue embroidery (30sp to a discerning buyer) • a dragon-shaped copper arm torc, green with verdegris and set with tiny ruby eyes, which, 3x/ day, magically enhances the strength of the arm upon which it is worn as if the Adrenal Moves (strength) skill was being used (390sp) • Cu-i-Thang (see Section 20.2)

22.2 INTO THE DEPTHS OF EREBOR Beawyn, a wyrdwoman of Dale, has long asserted that the natural caverns which run deep under the slopes of the Lonely Mountain are inhabited by evil. In her youth, she and her brother, Thealaf (No. “Song of Kind Praise”), entered the caverns to see if any truth lay in the tales of malignant spirits residing there. Only Beawyn returned, hysterically recounting Thealaf s demise in combat with “cave drakes.” The account led to a ban on entry into the caves without the permission of Dale’s Thyn, but most folk put little faith in the girl’s story, and the incident has scarred her reputation ever since.

7KHQRZDJHGVHHUDPHPEHURIWKH)pRWOLQJDVFODQ EHOLHYHVWKH'DOHWKpRGFODQKDVDFRQWLQXLQJLQWHUHVWLQ VHHLQJWKDWKHUFUHGLELOLW\UHPDLQVORZEXWVKHLVXQVXUH ZK\,QIDFWLWLVEHFDXVHVHOHFWPHPEHUVRIWKHODWWHUFODQ DUHVHFUHWO\ZRUNLQJDYHLQRIJROGLQWKHPRXQWDLQWKDW SURYLGHVPXFKRIWKH'DOHWKpRG·VZHDOWK 6HWWLQJ'DOHDQGWKHQDWXUDOFDYHUQFRPSOH[HVEHQHDWK (UHERUSULRUWRWKHFRPLQJRIWKH'ZDUYHVRI 'XULQLQ7$ 5HTXLUHPHQWV$GYHQWXUHUVPD\EHSURPSWHGWR LQYHVWLJDWHWKHFDYHUQVE\WDOHVRIPRQHWDU\ULFKHVLQ WKHKHDUWRI(UHERUDGHVLUHWRUHHVWDEOLVKWKH FUHGLELOLW\RI%HDZ\QRUVLPSO\FXULRVLW\$ORZWR PLGOHYHOSDUW\ZRXOGILQGWKLVDGYHQWXUHWKHPRVW FKDOOHQJLQJ .HHSLQPLQGWKDW'DOH·V7K\QeRGHULVOLDEOHWR EHXSVHWLIKHKHDUVWKH3&VKDYHEHHQVSHOXQNLQJ ZLWKRXWKLVSHUPLVVLRQ,IKHLVSUHVHQWHGZLWK HYLGHQFHWKDWWKHSDUW\KDVVODLQHYLOFUHDWXUHVZLWKLQ HJVHYHUHGPRQVWHUERG\SDUWV KRZHYHUKLV ZUDWKPLJKWEHDVVXDJHG $VPDOOJLIWIURPDQ\ERRW\UHFRYHUHGZRXOGDOVR KHOSFRQVROHKLP6LPLODUJULVO\WURSKLHVRIDQ\ EDWWOHXQGHU(UHERUIURPZKLFKWKH3&VHPHUJH YLFWRULRXVZLOODOVREHUHTXLUHGWRUHVWRUH%HDZ\Q·V UHSXWDWLRQ,IWKHSDUW\VHHNVeRGHU·VSHUPLVVLRQWR H[SORUHWKHFDYHVSULRUWRHPEDUNLQJKHZLOODWWKH VWULGHQWSURPSWLQJRIKLV'DOHWKpRGZLIH6XOZ\Q IRUELGWKHP HQWU\ $LGV&DYLQJVNLOODJRRGVHQVHRIGLUHFWLRQDQGWKH DELOLW\WRPDQHXYHUXQGHUJURXQGZLOO EHRIEHQHILW DSRZHUIXOVRXUFHRIOLJKWLVDPXVW3&VFDQJHWD YDJXHGHVFULSWLRQRIWKHKRUULILFVOLP\SDOH WDOO GHPRQVZKLFKLQKDELWWKHGHSWKVEHQHDWKWKH /RQHO\0RXQWDLQ LIWKH\FRQVXOW%HDZ\Q EHIRUH WKH\VHWRXW 5HZDUGV'HSHQGLQJXSRQKRZWKH\KDQGOHWKH VLWXDWLRQWKHSOD\HUFKDUDFWHUVPD\HDUQWKH IULHQGVKLSRI%HDZ\Q DQGKHUFODQ WKHHQPLW\RIWKH 'DOHWKpRGDQGSHUKDSVLIWKHJURXSDWWHPSWVWR REWDLQKLVSHUPLVVLRQILUVWDQGWKHQLJQRUHVKLV GHFLVLRQWKHHQPLW\RIeRGHUZKRGLVOLNHVEHLQJ PDGHWRORRNDIRRO 7KHWZRGHPRQVZKRLQKDELWWKHSDVVDJHV EHQHDWK(UHERUKDYHFROOHFWHGYDOXDEOHVIURPWKH UHPDLQVRIDQFLHQW0DQQLVKERGLHVDQGFUHPDWLRQV SODFHGZLWKLQWKHFDYHVEHFDXVHRIWKH/RQHO\ 0RXQWDLQ·VUHYHUHGKRO\VWDWXV 0RVWRIWKHVHLWHPVKDYHGHFRPSRVHGRYHUWKH FHQWXULHVEXWDQXPEHURIYDOXDEOHVVWLOOUHPDLQ VHFUHWHGDZD\LQRQHRIWKHGDUNHVWFDYHV9HU\ +DUGWRORFDWH DJUHDWQXPEHURIERQHVVRPHDUHFKDUUHGDQG PDQ\KDYHEHHQFUDFNHGRSHQWRJHWDWWKH PDUURZ

DVVRUWHG IUDJPHQWVRIUXVW\ROGFKDLQPDLODUPRU VRPHXQUHFRJQL]DEOHYHUGHJULVFRYHUHGPHWDO REMHFWVDQGVFUDSVRIOHDWKHUFORWKLQJ ODUJHJUH\ZDUHFUHPDWLRQXUQVZLWKVWDPSHG GHFRUDWLRQRQHLVPLVVLQJLWVOLG EURQ]HKDQJLQJERZOZLWKUHSRXVVpSHOWDGHVLJQV LQFKHVLQGLDPHWHUFRYHUHGZLWKYHUGHJULVDQG SDUWLDOO\GHFRPSRVHGVS LIUHSDLUHG EURQ]HFKDLQZRUNV\VWHPIRUWKHVXVSHQVLRQRID KDQJLQJERZOVS JLOGHGEURQ]HVTXDUHKHDGHGEURRFKZLWK LQWHUODFH GHFRUDWLRQLQFKHVORQJVS VPDOOJROGVTXDUHKHDGHGEURRFKZLWKDEVWUDFW GHFRUDWLRQDQGQLHOORLQOD\LQFKHVORQJ VS VLOYHUVSRRQVRQHLQVFULEHGZLWKWKHQDPH ´*DHUYLFµ1R´%DWWOHILHOGµ DQGWKHRWKHUZLWK ´0DHWKHOJDUµ1R´6KDUSWRQJXHG6SHDNHUµ HDFKLQFKHVORQJVSHDFK EURQ]HVDXFHUEURRFKZLWKDEVWUDFWVXQGHVLJQ LQFKHVLQGLDPHWHUVS JROGVDXFHUEURRFKHVZLWKDEVWUDFWVWDUGHVLJQV HDFK LQFKHVLQGLDPHWHUVSHDFK HODERUDWHJUHHQJODVV´FODZµEHDNHUVRQHPRVWO\ EURNHQDQGYDOXHOHVVWKHRWKHULQFKHVWDOO VS YHU\WKLQJROGEUDFWHDWHVHDFK LQFKLQGLDPHWHU ZLWKDQDWWDFKHGFODVSVSHDFK VLOYHUZLUHILQJHUULQJVVSHDFK 0XUHOLQVHH6HFWLRQ VS

$66,67,1*7+(*5$08=

5HZDUGV%URJGLQRIIHUV ,VSWRHDFK3&XSRQ FRPSOHWLRQRIWKHXQGHUWDNLQJVXEMHFWWRXQVSHFL ILHGERQXVHVEDVHGXSRQKRZFRPSUHKHQVLYHWKH LQIRUPDWLRQ \LHOGHGE\WKHUHFRQQDLVVDQFHHIIRUWV WUXO\LV 7KH*UDPX]7K\QZLOOLQVLVWWKH3&VKDQJDURXQG WRDFWDVVWUDWHJ\DGYLVRUVXQWLOWKHDWWDFNXSRQWKH EDQGLWKROGLVODXQFKHGDOWKRXJKWKH\ZLOOQRWEH UHTXLUHGWRSDUWLFLSDWHLQWKHDVVDXOW7KRVHZKRGR SDUWLFLSDWHPD\EHLQWHUHVWHGWRNQRZWKDWWKHSULFH RQ'LHUDJOLU·VKHDGKDVUHDFKHGVS7KRVHWKDW DUHLQYROYHGLQDVXFFHVVIXODWWDFNDUHHQWLWOHGWRD JHQHURXVSRUWLRQRIDQ\UHFRYHUHGERRW\DQGHDFK ZLOODOVRUHFHLYHDYDOXDEOH%URJGLQEUHJHQVHH 6HFWLRQ DQLWHPUHFRJQL]HGE\*UDPX]IRON WKURXJKRXW5KRYDQLRQ:HDUHUVFRPPDQGVLJQLIL FDQWUHVSHFWIURPWKDW1RUWKURQSHRSOH

$W WKH IXOO PRRQ PDUNHW LQ (VJDURWK WKH 3&V KHDU DERXW WKH *UDPX] WULEDO )DGDUWKLQJ·V FDOO IRU GRXJKW\ DGYHQWXUHUV7KHFRXQFLOLVKROGLQJDPHHWLQJWRGLVFXVV WKH LQFUHDVLQJO\ WURXEOHVRPH DFWLYLWLHV RI WKH EDQGLW 'LHUDJOLU RI5HOPHWKHU DQG KLV IROORZHUV 7KH *UDPX] 7K\Q%URJGLQVHH6HFWLRQV DQG UHTXHVWVWKH DGYHQWXUHUV· DVVLVWDQFH LQ ORFDWLQJ DQG LQILOWUDWLQJ WKH EDQGLWV·KLGHRXW&OpRIDFRW3&VDUHWRSRVHDVZRXOGEH UHFUXLWVRIWKHEULJDQGJDQJ7KH7K\QLVEDFNHGLQWKLV HQGHDYRU E\ (VJDURWK PHUFKDQWV ZKR KDYH EHHQ SUHYL RXVO\YLFWLPL]HG E\'LHUDJOLU 7KH3&VDUHWRUHFRQWKHKLGHRXWHVFDSHDQGUHSRUW EDFN WR %URJGLQ ZKR ZLOO WKHQ FDOO D IDHUG WR DWWDFN &OpRIDFRWEDVHGXSRQWKHDGYHQWXUHUV·LQIRUPDWLRQ7KH\ PD\SDUWLFLSDWHLQWKHODWWHUUDLGLIWKH\GHVLUHEXWLWLVQRW D UHTXLUHPHQWRIWKHLUHPSOR\PHQW 6HWWLQJ(VJDURWKWKHUXLQVHDVWRIWKH9LGXZDHG1R &/e2)$&27 ´)RUHVW>5RDG@)RUGµ RU,DFK&HOGXLQ1R´5LYHU &OHRIDFRWLVORFDWHGLQDYHU\QDUURZDQGVWHHSJRUJHFXW 5XQQLQJ)RUGµ ZKHUHWKH)DGDUWKLQJPHHWVWKHQ WKURXJK VKDUSO\ DQJOHG VODWH E\ D VPDOO VWUHDP 7KH WUDYHODORQJWKH'ZHUURZHJ1R´'ZDUI5RDGµ6 VXPPLWV RIWKH KLJK FKDVP ZDOOV DUH WKLFNO\ ´0HQL1DXJULPµ DQGILQDOO\WKHKROGRI ZRRGHGZLWKDQXQGHUFRYHURIEUDPEOHVDQGUKRGRGHQ &OpRIDFRW GURQDQGWKHURFNIORRULVFRYHUHGZLWKVOLFNDOJDHIURP 5HTXLUHPHQWV$PLGOHYHOJURXSRIWRXJKLQGLYLGXDOV WKHUDSLGFDVFDGLQJZDWHU:LWKVFRXWVSRVWHGRQWKHULP 7KHSDUW\ZRXOGGRZHOOWRNHHSWKHJRDORIWKHLU DERYHWKHFDYHFRPSOH[LQWKHZDOORIWKHUDYLQHLVYHU\ PLVVLRQWRWKHPVHOYHVDIWHUGHSDUWLQJWKH9LGXZDHG GHIHQVLEOHDQGWKHULOOQRWRQO\VHUYHVWRKLQGHUDWWDFNHUV· IRUVHYHUDORIWKHLVRODWHG*UDPX]KRPHVWHDGVLQWKH PRYHPHQWXSWKHFXWEXWGHWHUVWUDFNHUVDVZHOO YLFLQLW\RI&OpRIDFRW ZKR DSSHDUUHODWLYHO\IULHQGO\ 7KHFDYHUQFRPSOH[ LVPHUHO\ILYHLPPHQVH\HWUHOD RIIHULQJVKHOWHUDPRQJVWWKHIDUPDQLPDOVWR WLYHO\ORZFHLOLQJHGURRPV7KHEDQGLWVKDYHEXLOWZDWWOH WUDYHOHUVIRUDVPDOOIHHDUHIDPLOLDURUHYHQLQ DQGGDXE´KXWVµDJDLQVWWKHZDOOVRIWKHWZRODUJHUFDYHV OHDJXHZLWKWKHRXWODZVDQGPD\DWWHPSWWRPXUGHU IRUSULYDF\$GHHSSLWDWWKHEDFNRIWKHFDYH LQZKLFK 3&VGXULQJWKHQLJKW 'LUDHJOLUUHVLGHVSURWHFWVWKHWUHDVXUHFDYHEH\RQG6HY ,QDQ\HYHQWWKH3&VVKRXOGDSSHDUWREH HUDO SHRSOH ZLWK D IDLU DPRXQW RIWURXEOH FDQ ULJ D VFUXII\EDQGLWW\SHV IRU'LHUDJOLUZLOO EHSDUWLFX ZRRGHQSODWIRUPWRVSDQWKHSLW ODUO\VXVSLFLRXV RILQGLYLGXDOVVHHPLQJWRR ZHDOWK\ ,QWKHKROHLV'LUDHJOLU·VVSLWWLQJVQDNHDKXJHHJLO·VYLSHU 7KH EULJDQGOHDGHUZLOOGHYLVHDQXPEHURIWULDOVWR QDPHG 2JJD 1R ´7KLQJ RI7HUURUµ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·VVHDUFKIRUKLVKLGHDZD\*0·VFKRLFH )UHH3HRSOHVFDQGLVUXSW5KQQLVKVXSSO\WUDLQVERXQG EXWLIKHKDVKHZLOOEHH[WUHPHO\VXVSLFLRXV IRU$QJPDU 6KRXOG 'LHUDJOLUGLVFRYHUWKHWUXHQDWXUHRIWKH 6HWWLQJ/DWHVSULQJVXPPHUDQGHDUO\IDOODORQJWKH SDUW\·VLQWHQWLRQVRIFRXUVHKHZLOOQRWKHVLWDWHWR URXJKWUDFNVRXWKRIWKH(UHG0LWKULQWKH$HVGZHJ KDYHWKHPSXWWRWKHVZRUG 1R´(DVW5RDGµ6´0HQ5KXQHQµ $LGV6RPHGHPRQVWUDEOHVNLOOLQGHFHSWLRQVXEWHUIXJH 5HTXLUHPHQWV1RQHVDYHDGHVLUHDPRQJVWWKHPHP DQGFRPEDWDUHQHFHVVDU\IRU3&VXQGHUWDNLQJWKLV EHUVRIDJURXSRIDWOHDVWPLGOHYHOVWUHQJWKWRVWULNH PLVVLRQ%URJGLQNQRZVWKHJHQHUDOZKHUHDERXWVRI DEORZIRUWKH)UHH3HRSOHVDQGRUWRDFTXLUHVRPH WKHEDQGLWV·KLGHRXWDORQJWKH0HQL1DXJULPEXW ORRW7KHUHJLRQLVSDWUROOHGE\$VKDUDJ2U´)LUVW KHLVXQDZDUHRIWKHVSHFLILFORFDWLRQRIWKHSODFH *XDUGVµ 2UFVZKRSURYLGHSURWHFWLRQIRUVXSSO\ WUDLQVERXQGIRU0RXQW*XQGDEDGRU$QJPDU

7KH$VKDUDJWULEHLVFRPSULVHGRIVRPH OHVVHU2UFVDQGURXJKO\ ZROYHV7HQ$VKDUDJ EDQGVHDFKQXPEHULQJVRPHWZHQW\*REOLQVVHH 6HFWLRQ DQGILYHWRVL[ZROYHVSDWUROWKH IRRWKLOOVVRXWKRIWKH(UHG0LWKULQEHWZHHQWKH &LULWK0LWKOLQ6´3DVVRIWKH*UH\VRQJµ WRWKH ZHVWDQGWKH&LULWK)HDGLQ6´3DVVRIWKH6LOHQW 6SLULWµ DWWKHHDVWHUQHQGRIWKHPRXQWDLQUDQJH 7KHUHPDLQLQJ$VKDUDJVWD\KROHGXSDWWKHLUODLU 6XUJD[8NRJ2U ´%ODFN&KDVPRI8NRJ"µ XQGHU WKH8UXNOHDGHU8NRJWKH/DPHVHH6HFWLRQV DQG HPHUJLQJRQO\UDUHO\WRPDNHZDUXSRQ WKHLUZHDNHUQHLJKERUVWKH/DU]RJXKRWK2UFV$W OHDVWRQH*REOLQEDQGZLOODFFRPSDQ\DQ\VL]DEOH VXSSO\WUDLQDORQJWKH0HQ5K~QHQDQGODUJHU WUDLQVPD\KDYHWZR2UFLVKEDQGVHVFRUWLQJWKHP DQGSHUKDSVDIRUFHRI5KQQLVK(VWDUDYs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

67,//025(,'($6 7KHUHDUHDKRVWRIRWKHUSRVVLEOHDFWLYLWLHVWRNHHSSOD\HU FKDUDFWHUVRFFXSLHG6RPHVXJJHVWLRQVLQFOXGHDFWLQJDVDQ HQYR\IURPWKH3&V·RZQSHRSOHWRHVWDEOLVKWUDGHUHODWLRQV ZLWKWKH/DNHIRONJXLGLQJPRUH3ODJXHUHIXJHHVKRPHWR (VJDURWKWKURXJK0LUNZRRGDORQJWKH2OG)RUHVW5RDG H[SORULQJDSDUWLDOO\VXEPHUJHGVKLSZUHFNWRUHFRYHUYDOX DEOHVIRUDQ(VJDURWKPHUFKDQWSXOOLQJRIIDGDULQJKHLVWRI DZHDOWK\PHUFKDQW·VDERGHRUSRVW7$ UHFRYHU LQJ WKH 'DOHERF DQG 'DOHERFVKUHLQ IURP WKH 6PDXJ GHYDVWDWHGJKRVWLQIHVWHGUXLQVRI'DOH 7KHJDPHPDVWHUFDQDOZD\VIDOOEDFNRQWRWKHWULHGDQG WUXH EDUURRP EUDZOV JDPEOLQJ FRPSHWLWLRQV DQG HP SOR\PHQWDVFDUDYDQEDUJHJXDUGVWKDWRIWHQFRPSRVHD VLJQLILFDQWSDUWRIDFDPSDLJQUHPHPEHU/DNHWRZQLVD IURQWLHU WRZQ³D QRQH WRR VXEWOH HQYLURQPHQW ZKHUH QHDUO\HYHU\RQHFDUULHVDQGNQRZVKRZWRXVHDZHDSRQ 3&V PLJKW DOVR WU\ WKHLU KDQGV DW WUDSSLQJ DQG KHUE FROOHFWLQJVHH6HFWLRQIRUDSULFHOLVWRIFRPPRQO\ VRXJKW DQLPDO SHOWV 2U WKH *0 PD\ FRQVXOW ,&(·V 0LUNZRRGRU*UH\0RXQWDLQVIRUIXUWKHULGHDV

Mf[X^XiXqle

70 -557RONLHQ VFODVVLFZRUNV7KH/RUGRIWKH5LQJVDQG7KH+REELWKDYHVWLPXODWHGDQGLQVSLUHGIDQWDV\UROHSOD\HUVDQGIDQWDV\UHDGHUVIRUWKH SDVW\HDUV1RZH[SHULHQFHWKLVHSLFVHWWLQJLQIXOOGHWDLOZLWK0LGGOHHDUWK5ROH3OD\LQJ0(53 DQH[FLWLQJLQWHUPHGLDWHOHYHOIDQWDV\UROHSOD\LQJ V\VWHPWKDWLVSHUIHFWIRU7RONLHQHQWKXVLDVWVDVZHOODVH[SHULHQFHGJDPHUV

0RULD&LWDGHOVRI0LGGOHHDUWK

&RPH([SORUH0RULDWKHVWRULHG³%ODFN&KDVP´RI-557RONLHQ¶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²DQG ELJJHUDQG EHWWHUWKDQHYH 7KLV UHYLVHG SULQWLQJIHDWXUHVQHZDGYHQWXUHV OD\RXWVDQGVRXUFH PDWHULDO ,WLVWKH XOWLPDWHGXQJHRQWKHRULJLQDO'ZDUIFLWDGHO,WLVWKHXOWLPDWHGXQJHRQ WKHRULJLQDO'ZDUIFLWDGHODQGWKHKRPHRIVRPHRIWKHULFKHVWWUHDVXUHV DQGQDVWLHVWWUDSV\RX¶OOHYHUHQFRXQWHU

3DODQWtU4XHVWDGYHQWXUHV

6WUDQJH SRUWHQWV LQ WKH JUHDW 6HHLQJVWRQH RIWKH 0LQDV 7LULWK JLYH SURPLVHWKDWRQHRIWKHORVW3DODQWtULRIWKH1RUWKKDVUHWXUQHGWRWKHODQGV RI0HQ&DQ\RXUDGYHQWXUHUVILQGWKLVOHJHQGDU\WUHDVXUHDQGEULQJLWWR .LQJ(ODVVDU"5RJXHVRIWKHZLOGVEOL]]DUGVRXWRIWKH)RURGZDLWKDQG WKH JUHHG LQ 0HQ¶V KHDUWV DOO FRQVSLUH DJDLQVW \RX LQ WKLV SDJH VXSSOHPHQW IRU XVH ZLWK 0(53 0HHW WKH FKDOOHQJHV SRVHG LQ WKLV H[WHQGHGVHULHVRIDGYHQWXUHV²DFDPSDLJQWKDWFXOPLQDWHVLQWKHVXFFHVV IXOUHFRYHU\RID3DODQWtU3DODQWtU4XHVWLVVXLWDEOHIRUSOD\HUVPRYLQJXS IURP WKH /RUG RIWKH 5LQJV $GYHQWXUH *DPH WR 0(53 RU IRU WKRVH GLVFRYHULQJIDQWDV\UROHSOD\LQJIRUWKHILUVWWLPHZLWK0(53QG(GLWLRQ UXOHV 7KH TXHVW LV DOVR VXLWDEOH IRU WKH H[SHULHQFHG *0 ZKR ZDQWV H[FLWLQJ GHWDLOHG OLQNHG VFHQDULRV WKDW UHTXLUH QR H[WUD VHWXS ZRUN 3DODQWtU4XHVWLVDOVRXVDEOHZLWK5ROHPDVWHU70,&(¶VDGYDQFHG)53* $OOWKH13&VDQGVLWHVLQYRYOHGDUHIXOO\GHVFULEHGDQGWKHFRXUVHRIWKH DGYHQWXUHLVFRPSOHWHO\FKDUWHG

/5 /RUGRIWKH 5LQJV$GYHQWXUH*DPH

7KLV SDJH VRXUFHERRN GHWDLOV WKH PRVW SRZHUIXO DUWLIDFWV RI 7RONLHQ¶VZRUOGLQFOXGLQJ$UDJRUQ¶VVZRUG$QG~ULOWKHSDODQWtULVDYHG IURPGURZQHG1~PHQRUDQG6DXURQ¶V2QH5LQJ 7KLVFRPSHQGLXPLVD UHYLVHGYHUVLRQRIWKHVRXUFHERRNSUHYLRXVO\UHOHDVHGLQQRZRXWRI SULQW 7KLVQHZSULQWLQJZLOOIHDWXUHWKHVDPH$QJXV0F%ULGHFRYHUDUW EXWZLWKWKH0(53QG(GWUDGHGUHVV7KHQHZ7UHDVXUHVRI0H IHDWXUHV WZLFH DV PDQ\ LOOXVWUDWLRQV DQG LQFOXGHV FRPSOHWH VWDWV IRUWKH /RUGRIWKH5LQJV$GYHQWXUH*DPHLQDGGLWLRQWR0(53 5ROHPDVWHU VWDWV,IOLNH%LOER\RX¶YHHYHUIHOW³WKHORYHRIEHDXWLIXOWKLQJVPDGHE\ KDQGVDQGE\FXQQLQJDQGE\PDJLF´WKHQ7UHDVXUHVRI0LGGOHHDUWK EHORQJVLQ\RXUIDQWDV\UROHSOD\LQJFDPSDLJQ

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

.LQVWULIH6RXUFHERRN

7KLVSURGXFWSUHVHQWVWKHSHRSOHSROLWLFVDQGDUPLHVRI*RQGRUXQGHU WKH UHSUHVVLYH UXOHRI&DVWLPLUWKH 8VXUSHU7KHVL[ ODUJHVWFLWLHVRIWKH 6RXWKNLQJGRP²3HODUJLU 8PEDU/RQG (UQLO2VJLOLDWK0LQDV$UQRU DQG0LQDV,WKLO²DUHGHVFULEHGDORQJZLWKWKHLUDGPLQLVWUDWLYHVWUXFWXUHV PLOLWDU\ RUJDQL]DWLRQ DQG OHJDO V\VWHPV $GYHQWXUHV WLHG WR HDFK PH WURSROLVEULQJWKHFLYLOZDUWROLIH6WUDQJHFRQVSLUDFLHVDQGZHEVRIGHFHLW DZDLWWKHEROGDQG OR\DO

/5 'DUNHUWKDQWKH'DUNQHVV

/5 2YHUWKH0LVW\0QWDLQV&ROG

*UH\:RUOGV

7UHDVXUHVRI0LGGOHHDUWKVRXUFHERRN

SHULVVXH

7KLV QHZ TXDUWHUO\ PDJD]LQH LV WKH XOWLPDWH UHVRXUFH IRU JDPHUV ORRNLQJIRUQHZ LGHDVRSWLRQDOUXOHVDQGPRUHRQ,&( V0LGGOHHDUWK 5ROH 3OD\LQJ 5ROHPDVWHU 6KDGRZ :RUOG 6SDFH 0DVWHU 6LOHQW'HDWKDQG&\EHUVSDFHSURGXFWV$OVRORRNIRUXSGDWHVDQG SUHYLHZVRQXSFRPLQJ,&(SURGXFWV

&UHDWXUHV RI0LGGOHHDUWK6RXUFHERRN 7KLV SURGXFWGHWDLOV WKH VLJQLILFDQW EHDVWV DQG PRQVWHUV RI7RONLHQ V ZRUOG²WKHNHOYDUOLYLQJWKLQJVWKDWPRYHERUQRIWKH*UHDW6RQJVXFK DV UDYHQV XOPRGLOL GROSKLQV PHDUDVGHVFHQGDQWVRI2URPs VVWHHG ROLSKDQWVJUHDWHDJOHVFUHEDLQDQGEODFNVZDQVDVZHOODVWZLVWHGWKLQJV ³RIKRUQDQGLYRU\´WKDW³G\HWKHHDUWK ZLWKEORRG´DW0RUJRWK VEHKHVW

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

70 -557RONLHQ VFODVVLFZRUNV7KH/RUGRIWKH5LQJVDQG7KH+REELWKDYHVWLPXODWHGDQGLQVSLUHGIDQWDV\UROHSOD\HUVDQGIDQWDV\UHDGHUVIRUWKH SDVW\HDUV1RZH[SHULHQFHWKLVHSLFVHWWLQJLQIXOOGHWDLOZLWK0LGGOHHDUWK5ROH3OD\LQJ0(53 DQH[FLWLQJLQWHUPHGLDWHOHYHOIDQWDV\UROHSOD\LQJ V\VWHPWKDWLVSHUIHFW IRU7RONLHQHQWKXVLDVWVDVZHOODVH[SHULHQFHGJDPHUV

0(53QG (GLWLRQ+DUGERXQG 0(53 QG (GLWLRQ6RIWERXQG

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²DQ DFFHVVLEOH XVHUIULHQGO\ UXOHV V\VWHP*DPHPDVWHU*XLGHOLQHVDQGDFRPSOHWHVDPSOHDGYHQWXUHVHWLQ WKH7UROOVKDV DUH YDOXDEOHDLGV IRUWKRVH QHZWR0(53 0(53,,ZLOO EULQJWKHPRVWSRSXODUIDQWDV\WULORJ\7KH/RUGRIWKH5LQJVWROLIHDV QHYHUEHIRUH

9DODUDQG0DLDU3HRSOHVRI0(

9DODUDQG0DLDULVWKHILUVWERRNLQ,&(¶VQHZ³3HRSOHVRI0LGGOH HDUWK´ VHULHV IRU XVH ZLWK0LGGOHHDUWK 5ROH3OD\LQJ QG(GLWLRQ 7KLVODYLVKO\LOOXVWUDWHG SDJHFKDUDFWHUFRPSHQGLXPGRFXPHQWVWKH +RO\ 2QHV WKH JXDUGLDQV RI 0LGGOHHDUWK +HUH \RX¶OO ILQG GHWDLOHG GHVFULSWLRQV RI DOO WKH H[DOWHG 9DODU LQFOXGLQJ 0DQZs /RUG RI WKH 3RZHUV (OEHUHWK4XHHQRIWKH6WDUV $XOs)DWKHURIWKH'ZDUYHV DQG WKH %ODFN (QHP\ 0RUJRWK )DWKHURI(YLO
0LGGOHHDUWK5ROH3OD\LQJ3RVWHU0DSV

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²0(53UXOHV UHTXLUHG

)LQDOO\,&( VRULJLQDOPDSRI0LGGOHHDUWKLVDYDLODEOHDJDLQLQSRVWHU IRUPDW7KLV [ SRVWHUPDSLQFOXGHVWKHZLOGODQGV²QRUWKVRXWKDQG HDVW²DQGGRHVQRWKDYHDJULGRYHUOD\7KLVPDSZLOODOVREHRQKHDYLHU SDSHUWKDQ WKH JULGGHG PDS LQFOXGHG LQ ,&( V0LGGOHHDUWK &DPSDLJQ *XLGH67 $OVRLQFOXGHGLQWKLVILQHO\SDFNDJHGWXEHGVHWLV,&( V VHFRQGPDMRUPDS1RUWKZHVWHUQ0LGGOHHDUWKWKDWILUVWDSSHDUHGLQWKH VHFRQG JXLGHERRN DQG LV FXUUHQWO\ DYDLODEOH LQ ,&( V 1RUWKZHVWHUQ 0LGGOHHDUWK*D]HWWHHU67 7KLV PDS IRFXVHVRQWKH PRVWZHOO NQRZQDUHDVRI0LGGOHHDUWK ZKHUHWKHDFWLRQ UHDOO\ LV²IURP $UQRUWR 0RUGRUDQGIURP$QJPDUWR*RQGRU²WKLVPDSSUHVHQWVDPRUHFORVHXS YLHZ RIWKH VHWWLQJV IRU PDQ\ RI,&( V FDPSDLJQ VXSSOHPHQWV WKDQ WKH RULJLQDO0LGGOHHDUWKPDS7KH1RUWKZHVWHUQ0LGGOHHDUWKPDSLV[ DQGZLOODOVREHRQKHDYLHUSDSHUZLWKRXWDJULGRYHUOD\7KHVHWZR DFFODLPHGPDSVLQSRVWHUIRUPDW²12&5($6(6²DUHVXUHWREHDPXVW IRUDQ\0LGGOHHDUWKJDPHURUHQWKXVLDVW

0LGGOHHDUWK &DPSDLJQ*XLGH

$UQRU0LGGOHHDUWK 5HDOP

0(53QG (G$FFHVVRU\ 3DFN%R[HG

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¶VDGYDQFHG OHYHO5ROHPDVWHU $OVRLQFOXGHGLVDFRPSUHKHQVLYH JORVVDU\ RIWHUPV IRUWKH XQLTXH QDPHV7RONLHQ FUHDWHG IRUWKHSHRSOH FXOWXUHVDQGSODFHVRI0LGGOHHDUWK7KH(OYLVKGLFWLRQDU\SURYLGHVQRWHV RQSURQXQFLDWLRQDQGJUDPPDU $OOLQDOOWKLVLV DVWHOODUSXEOLFDWLRQIRU 0LGGOHHDUWKJDPHUVDQGFROOHFWRUV

0(53QG(GLWLRQ&RPEDW6FUHHQ

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~PLQDV DQG WKH HDUWKHQGLNHVVWRQHZDOOVDQGKLJKJXDUGWRZHUVRIIRUWLILHGIRUQRVWDUH DOVRLQFOXGHG $UQRULVDJUDQGEHJLQQLQJWRDVXSHUVHULHV

7KHVHILQHSURGXFWVDUHVROGDWEHWWHUUHWDLORXWOHWVZRUOG ZLGH$YDLODEOHDWEHWWHUJDPHVWRUHV²RURUGHUIURP,&( ,QF 32%R[ &KDUORWWHVYLOOH9D86$3ULFHV DUH VXEMHFW WR DOWHUDWLRQ ZLWKRXW SULRU QRWLFH 9,6$ 0$67(5&$5'RUGHUVDQGFDWDORJUHTXHVWV FDOO 9DUHVLGHQWV&DQDGLDQVDQGRYHUVHDVFXVWRPHUVFDOO 3OHDVHPDNHSKRQHRUGHUVGXULQJEXVLQHVV KRXUVDPSP (DVWHUQ6WDQGDUG7LPH 0RQ)UL &DOORU :ULWHIRUDIUHHFDWDORJ

Lake Town

Overview

More details

Related Documents

Lake Town

Coopers Town & Otsego Lake

Lake

Town

Town By Town

Marcebakher's Lake