3DOHVWLQH± +RPHRIKLVWRU\± KWWSZZZSDOHVWLQHKLVWRU\FRP
7+(+,6725<2)3$/(67,1( 7KH+RPHRIWKH3URSKHWVDQG+LVWRU\
3DOHVWLQH WKH ODQG RI WKH 3URSKHWV 5LFK LQ KLVWRU\ WKH KLVWRU\ RI JHQHUDWLRQV RI EHOLHYHUV ZKR OLYHG DQG ZRUVKLSSHG DQG IRXJKW DQG GLHG WKHUH SUDLVLQJ WKHLU /RUG DQGGHIHQGLQJWKHLUIDLWK
%DVHGRQ3DOHVWLQH± +RPHRIKLVWRU\ZHEVLWH KWWSZZZSDOHVWLQHKLVWRU\FRP %\(VDP6KDVKDD H0DLOLQIR#SDOHVWLQHKLVWRU\FRP H0DLOFRPPHQWV#SDOHVWLQHKLVWRU\FRP
,1'(;
7+(+,6725<2)3$/(6 7,1(««««««««««««««««««« ¶5'0,//(11,80%&«««««««««««««««««««««« ¶1'0,//(11,80%&««««««««««««««««««««««
¶670,//(11,80%&«««««««««««««««««««««« $'««««««««««««««««««««««««««««« $'««««««««««««««««««««««««««« $'««««««««««««««««««««««««««««
BBBBBBBBBBBBBBBBBBBBBBB
+LVWRU\RI3DOHVWLQH 3DJH1R RI
3DOHVWLQH± +RPHRIKLVWRU\± KWWSZZZSDOHVWLQHKLVWRU\FRP
¶5'0,//(11,80%& ¶UG PLOOHQQLXP %& 7KH &DQDDQLWHV ZHUH WKH HDUOLHVW NQRZQ LQKDELWDQWV RI 3DOHVWLQH7KH\EHFDPHXUEDQL]HGDQGOLYHGLQFLW\VWDWHVRQHRIZKLFKZDV-HULFKR 7KH\GHYHORSHGDQDOSKDEHW3DOHVWLQH VORFDWLRQDWWKHFHQWHURIURXWHVOLQNLQJWKUHH FRQWLQHQWVPDGHLWWKHPHHWLQJSODFHIRUUHOLJLRXVDQGFXOWXUDOLQIOXHQFHVIURP(J\SW 6\ULD0HVRSRWDPLDDQG$VLD0LQRU,WZDVDOVRWKHQDWXUDOEDWWOHJURXQGIRUWKHJUHDW SRZHUVRIWKHUHJLRQDQGVXEMHFWWRGRPLQDWLRQE\DGMDFHQWHPSLUHVEHJLQQLQJZLWK (J\SWLQWKHGPLOOHQQLXP%&
BBBBBBBBBBBBBBBBBBBBBBB
+LVWRU\RI3DOHVWLQH 3DJH1R RI
3DOHVWLQH± +RPHRIKLVWRU\± KWWSZZZSDOHVWLQHKLVWRU\FRP
¶1'0,//(11,80%& ¶UG PLOOHQQLXP %& (J\SWLDQ KHJHPRQ\ DQG &DQDDQLWH DXWRQRP\ ZHUH FRQVWDQWO\ FKDOOHQJHGE\VXFKHWKQLFDOO\GLYHUVHLQYDGHUVDVWKH$PRULWHV+LWWLWHVDQG+XUULDQV 7KHVH LQYDGHUV KRZHYHU ZHUH GHIHDWHG E\ WKH (J\SWLDQV DQG DEVRUEHG E\ WKH &DQDDQLWHVZKRDWWKDWWLPHPD\KDYHQXPEHUHGDERXW
WK FHQWXU\ %& (J\SWLDQ SRZHU EHJDQ WR ZHDNHQ QHZ LQYDGHUV DSSHDUHG WKH +HEUHZV D JURXS RI 6HPLWLF WULEHV IURP 0HVRSRWDPLD DQG WKH 3KLOLVWLQHV DIWHU ZKRPWKHFRXQWU\ZDVODWHUQDPHG DQ$HJHDQSHRSOHRI,QGR(XURSHDQVWRFN %& -RVKXD FRQTXHUHG SDUWV RI 3DOHVWLQH 7KH FRQTXHURUV VHWWOHG LQ WKH KLOO FRXQWU\EXWWKH\ZHUHXQDEOHWRFRQTXHUDOORI3DOHVWLQH
%& 7KH ,VUDHOLWHV D FRQIHGHUDWLRQ RI +HEUHZ WULEHV ILQDOO\ GHIHDWHG WKH &DQDDQLWHVEXWIRXQGWKHVWUXJJOHZLWKWKH3KLOLVWLQHVPRUHGLIILFXOW3KLOLVWLQHVKDG HVWDEOLVKHGDQLQGHSHQGHQWVWDWHRQWKHVRXWKHUQFRDVWRI3DOHVWLQHDQGFRQWUROOHGWKH &DQDDQLWHWRZQRI-HUXVDOHP
%& 3KLOLVWLQHV ZLWK WKHUH VXSHULRU LQ PLOLWDU\ RUJDQL]DWLRQ DQG XVLQJ LURQ ZHDSRQVWKH\VHYHUHO\GHIHDWHGWKH,VUDHOLWHVDERXW%&
BBBBBBBBBBBBBBBBBBBBBBB
+LVWRU\RI3DOHVWLQH 3DJH1R RI
3DOHVWLQH± +RPHRIKLVWRU\± KWWSZZZSDOHVWLQHKLVWRU\FRP
¶670,//(11,80%& %& 'DYLG ,VUDHO V JUHDW NLQJ ILQDOO\ GHIHDWHG WKH 3KLOLVWLQHV DQG WKH\ HYHQWXDOO\DVVLPLODWHGZLWKWKH&DQDDQLWHV7KHXQLW\RI,VUDHODQGWKHIHHEOHQHVVRI DGMDFHQWHPSLUHVHQDEOHG'DYLGWRHVWDEOLVKDODUJHLQGHSHQGHQWVWDWHZLWKLWVFDSLWDO DW-HUXVDOHP %& 8QGHU 'DYLG V VRQ DQG VXFFHVVRU 6RORPRQ ,VUDHO HQMR\HG SHDFH DQG SURVSHULW\ EXW DW KLV GHDWK LQ %& WKH NLQJGRP ZDV GLYLGHG LQWR ,VUDHO LQ WKH QRUWKDQG-XGDKLQWKHVRXWK
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
%&3HUVLDQGRPLQDWLRQRI3DOHVWLQHZDVUHSODFHGE\*UHHNUXOHZKHQ$OH[DQGHU WKH *UHDW RI 0DFHGRQLD WRRN WKH UHJLRQ $OH[DQGHU V VXFFHVVRUV WKH 3WROHPLHV RI (J\SWDQGWKH6HOHXFLGVRI6\ULDFRQWLQXHGWRUXOHWKHFRXQWU\7KH6HOHXFLGVWULHG WRLPSRVH+HOOHQLVWLF*UHHN FXOWXUHDQGUHOLJLRQRQWKHSRSXODWLRQ %&-HZVUHYROWHGXQGHUWKH0DFFDEHHVDQGVHWXSDQLQGHSHQGHQWVWDWH
%& -HZVUHYROWV HUXSWHG QXPHURXV -HZVZHUHNLOOHGPDQ\ZHUHVROG LQWR VODYHU\ DQG WKH UHVW ZHUH QRW DOORZHG WR YLVLW -HUXVDOHP -XGHD ZDV UHQDPHG 6\ULD 3DODLVWLQD
%& -HUXVDOHP ZDV RYHUUXQ E\ 5RPH +HURG ZDV DSSRLQWHG .LQJ RI -XGHD +H VODXJKWHUHGWKHODVWRIWKH+DVPRQHDQVDQGRUGHUHGD ODYLVKUHVWRUDWLRQDQGH[WHQVLRQ RI WKH6HFRQG7HPSOH $ SHULRG RI JUHDWFLYLOGLVRUGHUIROORZHGZLWKVWULIHEHWZHHQ SDFLILVWVDQG =HDORWVDQGULRWVDJDLQVWWKH5RPDQDXWKRULWLHV %&'XULQJWKHUXOHRI.LQJ+HURGWKH*UHDW-HVXVRI1D]DUHWKSHDFHEHXSRQ KLP ZDV ERUQ $QG \HDUV DIWHU KH EHJDQ KLV WHDFKLQJ PLVVLRQ +LV DWWHPSWV WR FDOO SHRSOHEDFNWRWKHSXUH WHDFKLQJVRI$EUDKDPDQG0RVHVZHUHMXGJHGVXEYHUVLYHE\ BBBBBBBBBBBBBBBBBBBBBBB
+LVWRU\RI3DOHVWLQH 3DJH1R RI
3DOHVWLQH± +RPHRIKLVWRU\± KWWSZZZSDOHVWLQHKLVWRU\FRP WKH DXWKRULWLHV +H ZDV WULHG DQG VHQWHQFHG WR GHDWK \HW WKH\ GLG QRW VOD\ KLP EXW RQO\DOLNHQHVVWKDWZDVVKRZQWRWKHP
BBBBBBBBBBBBBBBBBBBBBBB
+LVWRU\RI3DOHVWLQH 3DJH1R RI
3DOHVWLQH± +RPHRIKLVWRU\± KWWSZZZSDOHVWLQHKLVWRU\FRP
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
$'&RQVWDQWLQHRI%\]DQWLXPPDUFKHGRQ$HOLD+HUHEXLOWWKH FLW\ZDOOVDQG FRPPLVVLRQHG WKH &KXUFK RI WKH +RO\ 6HSXOFKUH DQG RSHQHG WKH FLW\ IRU &KULVWLDQ SLOJULPDJH $' %\]DQWLQH 5RPDQ UXOH ZDVLQWHUUXSWHG KRZHYHUE\DEULHI3HUVLDQ RFFXSDWLRQ DQG HQGHG DOWRJHWKHU ZKHQ 0XVOLP $UDE DUPLHV LQYDGHG 3DOHVWLQH DQG FDSWXUHG-HUXVDOHPLQ$'
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
+LVWRU\RI3DOHVWLQH 3DJH1R RI
3DOHVWLQH± +RPHRIKLVWRU\±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
BBBBBBBBBBBBBBBBBBBBBBB
+LVWRU\RI3DOHVWLQH 3DJH1R RI
3DOHVWLQH± +RPHRIKLVWRU\± KWWSZZZSDOHVWLQHKLVWRU\FRP
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
WKHILUVW=LRQLVW&RQJUHVVKHOG%DVOH6ZLW]HUODQGLVVXHGWKH%DVOHSURJUDPPH RQWKHFRORQL]DWLRQRI3DOHVWLQH
BBBBBBBBBBBBBBBBBBBBBBB
+LVWRU\RI3DOHVWLQH 3DJH1R RI
3DOHVWLQH± +RPHRIKLVWRU\± KWWSZZZSDOHVWLQHKLVWRU\FRP
$'
WKH )RXUWK =LRQLVW &RQJUHVV GHFLGHG WR HVWDEOLVK D QDWLRQDO KRPH IRU -HZV LQ $UJHQWLQD WKH=LRQLVWFRQJUHVVGHFLGHGWKH-HZLVKKRPHODQGVKRXOGEH3DOHVWLQH
:LWKWKHRXWEUHDNRI:RUOG:DU,%ULWDLQSURPLVHGWKHLQGHSHQGHQFHRI$UDE ODQGV XQGHU 2WWRPDQ UXOH LQFOXGLQJ 3DOHVWLQH LQ UHWXUQ IRU $UDE VXSSRUW DJDLQVW 7XUNH\ZKLFKKDGHQWHUHGWKHZDURQWKHVLGHRI*HUPDQ\ %ULWDLQ DQG )UDQFH VLJQHGWKH6\NHV3LFRW$JUHHPHQWZKLFKGLYLGHGWKH$UDE UHJLRQ LQWR ]RQHV RI LQIOXHQFH /HEDQRQ DQG 6\ULD ZHUH DVVLJQHG WR )UDQFH -RUGDQ DQG,UDTWR%ULWDLQDQG3DOHVWLQHZDVWREHLQWHUQDWLRQDOL]HG
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
$IWHU::,HQGHG-HZVEHJDQWRPLJUDWHWR3DOHVWLQHZKLFKZDVVHWDVLGH DV D %ULWLVK PDQGDWH ZLWK WKH DSSURYDO RI WKH /HDJXH RI 1DWLRQV LQ /DUJH VFDOH-HZLVKVHWWOHPHQWDQGH[WHQVLYH=LRQLVWDJULFXOWXUDODQGLQGXVWULDOHQWHUSULVHVLQ 3DOHVWLQHEHJDQGXULQJWKH%ULWLVKPDQGDWRU\SHULRGZKLFKODVWHGXQWLO 7KH 3DOHVWLQLDQV FRQYHQHGWKHLUILUVW1DWLRQDO&RQIHUHQFHDQGH[SUHVVHGWKHLU RSSRVLWLRQWRWKH%DOIRXU'HFODUDWLRQ
7KH 6DQ 5HPR &RQIHUHQFH JUDQWHG %ULWDLQ D PDQGDWH RYHU 3DOHVWLQH DQG WZR \HDUVODWHU3DOHVWLQHZDVHIIHFWLYHO\XQGHU%ULWLVKDGPLQLVWUDWLRQ6LU+HUEHUW6DPXHO DGHFODUHG=LRQLVWZDVVHQWDV%ULWDLQ VILUVW+LJK&RPPLVVLRQHUWR3DOHVWLQH 7KH&RXQFLORIWKH/HDJXHRI1DWLRQVLVVXHGD0DQGDWHIRU3DOHVWLQH BBBBBBBBBBBBBBBBBBBBBBB
+LVWRU\RI3DOHVWLQH 3DJH1R RI
3DOHVWLQH± +RPHRIKLVWRU\±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
3HHO &RPPLVVLRQ KHDGHG E\ /RUG 5REHUW 3HHO LVVXHG D UHSRUW %DVLFDOO\WKH FRPPLVVLRQFRQFOXGHGWKHPDQGDWHLQ3DOHVWLQHZDVXQZRUNDEOH7KHUHZDVQRKRSH RI DQ\ FRRSHUDWLYH QDWLRQDO HQWLW\ WKHUH WKDW LQFOXGHG ERWK $UDEV DQG -HZV 7KH FRPPLVVLRQ ZHQW RQ WR UHFRPPHQG WKHSDUWLWLRQ RI 3DOHVWLQH LQWR D -HZLVKVWDWHDQ $UDEVWDWHDQGDQHXWUDOVDFUHGVLWHVWDWHWREHDGPLQLVWHUHGE\%ULWDLQ
7KH%ULWLVKJRYHUQPHQWSXEOLVKHGD:KLWH3DSHUUHVWULFWLQJ-HZLVKLPPLJUDWLRQ DQGRIIHULQJLQGHSHQGHQFHIRU3DOHVWLQHZLWKLQWHQ\HDUV7KLVZDVUHMHFWHGE\WKH =LRQLVWVZKRWKHQRUJDQL]HGWHUURULVWJURXSVDQGODXQFKHGDEORRG\FDPSDLJQDJDLQVW WKH%ULWLVKDQGWKH3DOHVWLQLDQV
BBBBBBBBBBBBBBBBBBBBBBB
+LVWRU\RI3DOHVWLQH 3DJH1R RI
3DOHVWLQH± +RPHRIKLVWRU\± KWWSZZZSDOHVWLQHKLVWRU\FRP
*UHDW%ULWDLQGHFLGHGWROHDYH3DOHVWLQHDQGFDOOHGRQWKH8QLWHG1DWLRQV81 WRPDNHUHFRPPHQGDWLRQV,QUHVSRQVHWKH81FRQYHQHGLWVILUVWVSHFLDOVHVVLRQDQG RQ1RYHPEHULWDGRSWHGDSODQFDOOLQJIRUSDUWLWLRQRI3DOHVWLQHLQWR-HZLVK DQG$UDEVWDWHVZLWK-HUXVDOHPDVDQLQWHUQDWLRQDO]RQHXQGHU81MXULVGLFWLRQ
$UDE SURWHVWV DJDLQVW SDUWLWLRQ HUXSWHG LQ YLROHQFH ZLWK DWWDFNV RQ -HZLVK VHWWOHPHQWV LQ UHWDODWLRQ WR WKH DWWDFNV RI -HZV WHUURULVW JURXSV WR $UDE 7RZQV DQG YLOODJHVDQGPDVVDFUHVLQKXQGUHGDJDLQVWXQDUPHG3DOHVWLQLDQLQWKHUHKRPHV 0D\%ULWLVKGHFLGHGWROHDYHRQWKLVGD\OHDGHUVRIWKH
7KH VPDOO *D]D 6WULS ZDV OHIW XQGHU (J\SWLDQ FRQWURO DQG WKH :HVW %DQN ZDV FRQWUROHGE\-RUGDQ 2IWKHPRUHWKDQ$UDEVZKROLYHGLQ,VUDHOLKHOGWHUULWRU\EHIRUHRQO\ DERXWUHPDLQHG7KHUHVWEHFDPHUHIXJHHVLQWKHVXUURXQGLQJ$UDEFRXQWULHV HQGLQJWKH$UDEPDMRULW\LQWKH-HZLVKVWDWH
$WWFNHVLQFXUVLRQVE\UHIXJHHJXHUULOODEDQGVDQGDWWDFNVE\$UDEPLOLWDU\XQLWV ZHUHPDGH(J\SWUHIXVHGWRSHUPLW,VUDHOLVKLSVWRXVHWKH6XH]&DQDODQGEORFNDGHG WKH6WUDLWVRI7LUDQHUXSWHGLQWKHVHFRQG$UDE,VUDHOL:DU
*UHDW %ULWDLQ DQG )UDQFH MRLQHG WKH DWWDFN EHFDXVH RI WKHLU GLVSXWH ZLWK (J\SW V SUHVLGHQW *DPDO $EGHO 1DVVHU ZKR KDG QDWLRQDOL]HG WKH 6XH] &DQDO 6HL]LQJ WKH *D]D 6WULS DQG WKH 6LQDL 3HQLQVXOD ZLWKLQ IHZ GD\V 7KH ILJKWLQJ ZDV KDOWHG E\ WKH 81DIWHUDIHZGD\VDQGD81(PHUJHQF\)RUFH81() ZDVVHQWWRVXSHUYLVHWKH FHDVHILUHLQWKH&DQDO]RQH%\WKHHQGRIWKH\HDUWKHLUIRUFHVZLWKGUHZIURP(J\SW EXW,VUDHOUHIXVHGWROHDYH*D]DXQWLOHDUO\ 7KH3DOHVWLQH/LEHUDWLRQ2UJDQL]DWLRQZDVHVWDEOLVKHG
BBBBBBBBBBBBBBBBBBBBBBB
+LVWRU\RI3DOHVWLQH 3DJH1R RI
3DOHVWLQH± +RPHRIKLVWRU\± KWWSZZZSDOHVWLQHKLVWRU\FRP
1DVVHU V LQVLVWHQFH LQ WKDW WKH 81() OHDYH (J\SW OHG ,VUDHO WR DWWDFN (J\SW-RUGDQDQG6\ULDVLPXOWDQHRXVO\RQ-XQH
7KHZDUHQGHGVL[GD\VODWHUZLWKDQ,VUDHOLYLFWRU\,VUDHORFFXLSHG*D]D6WULS6LQDL 3HQLQVXOD$UDE(DVW-HUXVDOHP:HVW%DQN*RODQ+HLJKWV $IWHU ZDU VHYHUDO JXHUULOOD RUJDQL]DWLRQV ZLWKLQ WKH 3DOHVWLQH /LEHUDWLRQ 2UJDQL]DWLRQ3/2 FDUULHGRXWJXHUULOODVDWWDFNVRQ,VUDHOLPLOHWDU\WDUJHWVZLWKWKH VWDWHGREMHFWLYHRI³UHGHHPLQJ3DOHVWLQH´
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
,VUDHOODXQFKHGDQLQYDVLRQRI/HEDQRQ DLPHGDWZLSLQJRXWWKH3/2SUHVHQFH WKHUH%\PLG$XJXVWDIWHULQWHQVLYH ILJKWLQJLQDQGDURXQG%D\UXWWKH3/2DJUHHG WRZLWKGUDZLWVJXHUULOODVIURPWKHFLW\,VUDHOLWURRSVUHPDLQHGLQVRXWKHUQ/HEDQRQ
5HODWLRQV EHWZHHQ ,VUDHO DQG WKH 3DOHVWLQLDQV HQWHUHG D QHZ SKDVH ZLWK WKH LQWLIDGDDVHULHVRIXSULVLQJVLQWKHRFFXSLHGWHUULWRULHVWKDWLQFOXGHGGHPRQVWUDWLRQV VWULNHVDQGURFNWKURZLQJDWWDFNVRQ,VUDHOLVROGLHUV 7KH 31& PHHWLQJ LQ $OJLHUV GHFODUHG WKH 6WDWH RI 3DOHVWLQH DV RXWOLQHG LQ WKH 813DUWLWLRQ3ODQ
BBBBBBBBBBBBBBBBBBBBBBB
+LVWRU\RI3DOHVWLQH 3DJH1R RI
3DOHVWLQH± +RPHRIKLVWRU\± KWWSZZZSDOHVWLQHKLVWRU\FRP
7KHILUVWFRPSUHKHQVLYHSHDFHWDONVEHWZHHQ,VUDHODQGGHOHJDWLRQVUHSUHVHQWLQJ WKH3DOHVWLQLDQVDQGQHLJKERULQJ$UDEVWDWHV ,VUDHOGHSRUWHG3DOHVWLQLDQPHQWRDEXIIHU]RQHLQVRXWKHUQ/HEDQRQ7KH GHSRUWHG 3DOHVWLQLDQV ZHUH VDLG E\ ,VUDHOL DXWKRULWLHV WR EH DFWLYH PHPEHUV RI WKH PLOLWDQW,VODPLFUHVLVWDQFHPRYHPHQW+DPDV
$IWHUVHFUHWQHJRWLDWLRQV305DELQDQG3/2&KDLUPDQ
2FW7KH1REHO&RPPLWWHHLQ2VOR1RUZD\DQQRXQFHGWKDWWKHSHDFHSUL]HZDV EHLQJDZDUGHGWR,VUDHO V)RUHLJQ0LQLVWHU6KLPRQ3HUHVDQG3ULPH0LQLVWHU
$SULO6L[NLOOHGLQ*D]D6XLFLGHERPELQJ -XO\6XLFLGHERPELQ7HO$YLYL
$XJ6XLFLGHERPEHUNLOOVILYHLQ-HUXVDOHP
6HSW,VUDHOLDQG3/2RIILFLDOVPHHWLQJLQ7DED(J\SWILQDOL]HGDJUHHPHQWRQ WKH VHFRQG VWDJH RI HYHQWXDO ,VUDHOL ZLWKGUDZDO IURP 3DOHVWLQLDQ ODQGV 6SHFLDO DUUDQJHPHQWV ZHUH DJUHHG XSRQ IRU +HEURQ ZKHUH ,VUDHOL VROGLHUV ZLOO UHPDLQ WR SURWHFWWKH-HZLVKVHWWOHUVOLYLQJWKHUH BBBBBBBBBBBBBBBBBBBBBBB
+LVWRU\RI3DOHVWLQH 3DJH1R RI
3DOHVWLQH± +RPHRIKLVWRU\± KWWSZZZSDOHVWLQHKLVWRU\FRP 1RY,VUDHOL3ULPH0LQLVWHU
-DQ3/2&KDLUPDQ
-XQH 5LJKWZLQJ /LNXG 3DUW\ OHDGHU %HQMDPLQ 1HWDQ\DKX EHFRPH WKH QHZ 3ULPH0LQLVWHURI,VUDHO
-XQH$UDEVXPPLWGLVFXVVWKHQHZ,VUDHOL3ULPH0LQLVWHU%HQMDPLQ1HWDQ\DKX V SHDFH SODQV 'HF ,VUDHOL DXWKRULWLHV UHOHDVH SODQV WR H[SDQG WKH -HZLVK VHWWOHPHQWV LQ $UDE HDVW-HUXVDOHPZKLFKFDXVHVRXWUDJHDPRQJ3DOHVWLQLDQV -DQ ,VUDHO DQG WKH 3DOHVWLQLDQ $XWKRULW\ UHDFKHG DQ DJUHHPHQW IRU DQ ,VUDHOL UHGHSOR\PHQWIURPWKH :HVW%DQNFLW\RI+HEURQ
2FW 6KHLN $KPHG
2FW ,VUDHOL 3ULPH0LQLVWHU%HQMDPLQ 1HWDQ\DKX DQG 3DOHVWLQLDQOHDGHU
'HF 3UHVLGHQW &OLQWRQ VWRRG ZLWQHVV DV KXQGUHGV RI 3DOHVWLQLDQ OHDGHUV UHQRXQFHG D FDOO IRU WKH GHVWUXFWLRQ RI ,VUDHO &OLQWRQ XUJHG OHJLWLPDWH ULJKWV IRU 3DOHVWLQLDQVUHDOVHFXULW\IRU,VUDHO
0D\ :LQQLQJ D FUXVKLQJ YLFWRU\ RYHU KDUGOLQH 3ULPH 0LQLVWHU %HQMDPLQ 1HWDQ\DKX(KXG%DUDNSURPLVHGWRIRUJHDVHFXUHSHDFHZLWKWKH3DOHVWLQLDQVSXOO WURRSVRXWRI/HEDQRQLQD\HDUDQGKHDOWKHGHHSGLYLVLRQVDPRQJ,VUDHOLV 6HS $Q DJUHHPHQW KDV EHHQ UHDFKHG ZLWK ,VUDHO FRQFHUQLQJ WKH UHOHDVH RI 3DOHVWLQLDQ SULVRQHUV 6XFK UHOHDVH ZDV D PDMRU SRLQW RI FRQWHQWLRQ LQ QHJRWLDWLRQV FRQFHUQLQJWKHLPSOHPHQWDWLRQRIWKH:\H5LYHUSHDFHDFFRUG
2FW ,VUDHO DQG WKH 3DOHVWLQLDQV DJUHHG WR HVWDEOLVK WKH ILUVW RSHQ ODQG OLQN EHWZHHQWKH:HVW%DQNDQGWKH*D]D6WULSVRFDOOHGVDIHSDVVDJH 0DU .LVVLQJ 3DOHVWLQLDQ HDUWK DQG ZDUPO\ ZHOFRPHG E\
+LVWRU\RI3DOHVWLQH 3DJH1R RI