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

 %&  :KHQ QHDUE\ HPSLUHV UHVXPHG WKHLU H[SDQVLRQ WKH GLYLGHG ,VUDHOLWHV
FRXOGQRORQJHUPDLQWDLQWKHLULQGHSHQGHQFH,VUDHOIHOOWR$VV\ULD
%&-XGDKZDVFRQTXHUHGE\%DE\ORQLDZKLFK GHVWUR\HG-HUXVDOHPDQGH[LOHG
PRVW RI WKH -HZV OLYLQJ WKHUH 1HEXFKDGQH]]DU HQWHUHG -HUXVDOHP 7KH 7HPSOH ZDV
VDFNHG DQG VHW ILUH WR DQG UD]HG WR WKH JURXQG 7KH 5R\DO 3DODFH DQG DOO WKH JUHDW
KRXVHV ZHUH GHVWUR\HG  WKH  SRSXODWLRQ FDUULHG RII LQ FKDLQV WR %DE\ORQ $QG WKH\
ODPHQWHGRQWKHLUORQJPDUFKLQWRH[LOH

%&&\UXVWKH*UHDWRI3HUVLDFRQTXHUHG%DE\ORQLDDQGKHSHUPLWWHGWKH-HZVWR
UHWXUQ WR -XGHD D GLVWULFW RI 3DOHVWLQH 8QGHU 3HUVLDQ UXOH WKH -HZV ZHUH DOORZHG
FRQVLGHUDEOHDXWRQRP\7KH\UHEXLOWWKHZDOOVRI-HUXVDOHPDQGFRGLILHGWKH0RVDLF
ODZ WKH 7RUDK ZKLFK EHFDPH WKH FRGH RI VRFLDO OLIH DQG UHOLJLRXV REVHUYDQFH 7KH
-HZVZHUHERXQGWRDXQLYHUVDO*RG

%&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

$'
 $'  7LWXV RI 5RPH ODLG VLHJH WR -HUXVDOHP 7KH ILHUFHO\ GHIHQGHG 7HPSOH
HYHQWXDOO\IHOODQGZLWKLWWKHZKROHFLW\6HHNLQJDFRPSOHWHDQG HQGXULQJYLFWRU\
7LWXVRUGHUHGWKHWRWDOGHVWUXFWLRQRIWKH +HURGLDQ7HPSOH$QHZFLW\QDPHG$HOLD
ZDVEXLOWE\WKH5RPDQVRQWKHUXLQVRI -HUXVDOHPDQGDWHPSOHGHGLFDWHGWR-XSLWRU
UDLVHGXS

$'3DOHVWLQHUHFHLYHGVSHFLDODWWHQWLRQZKHQWKH5RPDQHPSHURU&RQVWDQWLQH,
OHJDOL]HG &KULVWLDQLW\ +LV PRWKHU +HOHQD YLVLWHG -HUXVDOHP DQG 3DOHVWLQH DV WKH
+RO\ /DQG EHFDPH D IRFXV RI &KULVWLDQ SLOJULPDJH $ JROGHQ DJH RI SURVSHULW\
VHFXULW\ DQG FXOWXUH IROORZHG 0RVW RI WKH SRSXODWLRQ EHFDPH +HOOHQL]HG DQG
&KULVWLDQL]HG

$'&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 $UDE DUPLHV LQYDGHG 3DOHVWLQH DQG
FDSWXUHG-HUXVDOHPLQ$'

 $'  7KH $UDE FRQTXHVW EHJDQ  \HDUV RI 0XVOLP SUHVHQFH LQ ZKDW WKHQ
EHFDPHNQRZQDV)LODVWLQ(DJHUWREHULGRIWKHLU%\]DQWLQHRYHUORUGVDQGDZDUHRI
WKHLU VKDUHG KHULWDJH ZLWK WKH $UDEV WKH GHVFHQGDQWV RI ,VKPDHO DV ZHOO DV WKH
0XVOLPV UHSXWDWLRQ IRU PHUF\ DQG FRPSDVVLRQ LQ YLFWRU\ WKH SHRSOH RI -HUXVDOHP
KDQGHGRYHUWKHFLW\DIWHUDEULHIVLHJH 7KH\PDGHRQO\RQHFRQGLWLRQ7KDWWKHWHUPV
RI WKHLU VXUUHQGHU EH QHJRWLDWHG GLUHFWO\ ZLWK WKH .KDOLI
8PDU LQ SHUVRQ
8PDU
HQWHUHG-HUXVDOHPRQIRRW7KHUHZDVQREORRGVKHG7KHUHZHUH QRPDVVDFUHV 7KRVH
ZKRZDQWHGWROHDYHZHUHDOORZHGWRZLWKDOOWKHLUJRRGV 7KRVHZKRZDQWHGWR VWD\
ZHUHJXDUDQWHHSURWHFWLRQIRUWKHLUOLYHV WKHLUSURSHUW\DQGSODFHVRIZRUVKLS

3DOHVWLQH ZDV KRO\ WR 0XVOLPV EHFDXVH WKH 3URSKHW 0XKDPPDG KDG GHVLJQDWHG
-HUXVDOHPDVWKHILUVWTLEODWKHGLUHFWLRQ0XVOLPVIDFHZKHQSUD\LQJDQGEHFDXVHKH
ZDVEHOLHYHGWRKDYHDVFHQGHGRQDQLJKWMRXUQH\WRKHDYHQIURPWKHWKHROGFLW\RI
-HUXVDOHP DO$TVD 0RVTXH WRGD\  ZKHUH WKH 'RPH RI WKH 5RFN ZDV ODWHU EXLOW
-HUXVDOHPEHFDPHWKHWKLUGKROLHVWFLW\RI,VODP7KH0XVOLPUXOHUVGLGQRWIRUFHWKHLU
UHOLJLRQ RQ WKH 3DOHVWLQLDQV DQG PRUH WKDQ D FHQWXU\ SDVVHG EHIRUH WKH PDMRULW\
FRQYHUWHGWR,VODP7KHUHPDLQLQJ&KULVWLDQVDQG-HZVZHUHFRQVLGHUHG3HRSOHRIWKH
%RRN 7KH\ ZHUH DOORZHG DXWRQRPRXV FRQWURO LQ WKHLU FRPPXQLWLHV DQG JXDUDQWHHG
VHFXULW\DQGIUHHGRPRIZRUVKLS6XFKWROHUDQFHZDVUDUHLQWKHKLVWRU\RIUHOLJLRQ
0RVW 3DOHVWLQLDQV DOVR DGRSWHG $UDELF DQG ,VODPLF FXOWXUH 3DOHVWLQH EHQHILWHG IURP
WKHHPSLUHVWUDGHDQGIURPLWVUHOLJLRXVVLJQLILFDQFHGXULQJWKHILUVW0XVOLPG\QDVW\
WKH8PD\\DGVRI'DPDVFXV

BBBBBBBBBBBBBBBBBBBBBBB
+LVWRU\RI3DOHVWLQH
3DJH1R RI
 3DOHVWLQH± +RPHRIKLVWRU\± KWWSZZZSDOHVWLQHKLVWRU\FRP

 $'  7KH SRZHU VKLIWHG WR %DJKGDG ZLWK WKH $EEDVLGV 3DOHVWLQH EHFDPH
QHJOHFWHG ,W VXIIHUHG XQUHVW DQG VXFFHVVLYH GRPLQDWLRQ E\ 6HOMXNV )DWLPLGV DQG
(XURSHDQ&UXVDGHUV,WVKDUHGKRZHYHULQWKHJORU\RI0XVOLPFLYLOL]DWLRQZKHQWKH
0XVOLP ZRUOG HQMR\HG D JROGHQ DJH RI VFLHQFH DUW SKLORVRSK\ DQG OLWHUDWXUH
0XVOLPV SUHVHUYHG *UHHN OHDUQLQJ DQG EURNH QHZ JURXQG LQ VHYHUDO ILHOGV DOO RI
ZKLFK ODWHU FRQWULEXWHG WR WKH 5HQDLVVDQFH LQ (XURSH /LNH WKH UHVW RI WKH HPSLUH
KRZHYHU3DOHVWLQHXQGHUWKH0DPHOXNHVJUDGXDOO\VWDJQDWHGDQGGHFOLQHG

BBBBBBBBBBBBBBBBBBBBBBB
+LVWRU\RI3DOHVWLQH
3DJH1R RI
 3DOHVWLQH± +RPHRIKLVWRU\± KWWSZZZSDOHVWLQHKLVWRU\FRP

$'
 $'  7KH 2WWRPDQ 7XUNV RI $VLD 0LQRU GHIHDWHG WKH 0DPHOXNHV ZLWK IHZ
LQWHUUXSWLRQV UXOHG 3DOHVWLQH XQWLO WKH ZLQWHU RI  7KH FRXQWU\ ZDV GLYLGHG
LQWR VHYHUDO GLVWULFWV VDQMDNV VXFK DV WKDW RI -HUXVDOHP 7KH DGPLQLVWUDWLRQ RI WKH
GLVWULFWVZDVSODFHGODUJHO\LQWKHKDQGVRI$UDE3DOHVWLQLDQVZKRZHUHGHVFHQGDQWV
RI WKH &DQDDQLWHV 7KH &KULVWLDQ DQG -HZLVKFRPPXQLWLHV KRZHYHUZHUH DOORZHGD
ODUJH PHDVXUH RI DXWRQRP\ 3DOHVWLQH VKDUHG LQ WKH JORU\ RI WKH 2WWRPDQ (PSLUH
GXULQJ WKHWK FHQWXU\EXW GHFOLQHGDJDLQZKHQWKHHPSLUHEHJDQWRGHFOLQHLQWKH
WKFHQWXU\

 $'  0XKDPPDG $OL WKH PRGHUQL]LQJ YLFHUR\ RI (J\SW H[SDQGHG KLV
UXOH WR 3DOHVWLQH  +LV SROLFLHV PRGLILHG WKH IHXGDO RUGHU LQFUHDVHG DJULFXOWXUH DQG
LPSURYHGHGXFDWLRQ

7KH2WWRPDQ(PSLUHUHDVVHUWHGLWVDXWKRULW\LQVWLWXWLQJLWVRZQUHIRUPV
 -HZLVK LQ 3DOHVWLQH ZHUH  LQFUHDVHG WR  E\  $OO SHRSOH LQ
3DOHVWLQHZHUH$UDELF0XVOLPVDQG&KULVWLDQV

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

7KH%ULWLVKJRYHUQPHQWLVVXHGWKH%DOIRXU'HFODUDWLRQRQ1RYHPEHULQWKH
IRUPRIDOHWWHUWRD%ULWLVK=LRQLVWOHDGHUIURPWKHIRUHLJQVHFUHWDU\$UWKXU-%DOIRXU
SUPLVVLQJ KLP WKH HVWDEOLVKPHQW RI D QDWLRQDO KRPH IRU WKH -HZLVK SHRSOH LQ
3DOHVWLQH

 $LGHG E\ WKH $UDEV WKH %ULWLVK FDSWXUHG 3DOHVWLQH IURP WKH 2WWRPDQ
7XUNV7KH$UDEVUHYROWHGDJDLQVWWKH7XUNVEHFDXVHWKH%ULWLVKKDGSURPLVHGWKHP
LQ FRUUHVSRQGHQFH ZLWK 6KDUHHI +XVHLQ LEQ $OL RI 0HFFD WKHLQGHSHQGHQFH RI WKHLU
FRXQWULHVDIWHUWKHZDU%ULWDLQKRZHYHUDOVRPDGHRWKHUFRQIOLFWLQJFRPPLWPHQWVLQ
WKHVHFUHW6\NHV3LFRWDJUHHPHQWZLWK)UDQFHDQG5XVVLDLWSURPLVHGWRGLYLGH
DQG UXOH WKH UHJLRQ ZLWK LWV DOOLHV ,Q D WKLUG DJUHHPHQW WKH %DOIRXU 'HFODUDWLRQ RI
%ULWDLQSURPLVHGWKH-HZVD-HZLVKQDWLRQDOKRPHLQ3DOHVWLQH

$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\± KWWSZZZSDOHVWLQHKLVWRU\FRP

/DUJHVFDOHDWWDFNVRQ-HZVE\$UDEVURFNHG-HUXVDOHP3DOHVWLQLDQVNLOOHG
-HZVDQGVXIIHUHGGHDWKV6SDUNHGE\DGLVSXWHRYHUXVHRIWKH:HVWHUQ:DOORI
$O$TVD0RVTXHWKLVVLWHLVVDFUHGWR0XVOLPVEXW-HZVFODLPHGLWLVWKHUHPDLQLQJ
RIMHZVWHPSOHDOOVWXGLHVVKRZVFOHDUO\WKDWWKHZDOOLVIURPWKH,VODPLFDJHVDQGLWLV
SDUWRIDO$TVD0RVTXH%XWWKHURRWVRIWKHFRQIOLFWOD\GHHSHULQ$UDEIHDUVRIWKH
=LRQLVWPRYHPHQWZKLFKDLPHGWRPDNHDWOHDVWSDUWRI%ULWLVKDGPLQLVWHUHG3DOHVWLQH
D-HZLVKVWDWH

 7KH 3DOHVWLQLDQV KHOG D VL[PRQWK *HQHUDO 6WULNH WR SURWHVW DJDLQVW WKH
FRQILVFDWLRQRIODQGDQG-HZLVKLPPLJUDWLRQ

 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<LVKXYGHFLGHGDV
WKH\FODLPWRLPSOHPHQWWKDWSDUWRIWKHSDUWLWLRQSODQFDOOLQJIRUHVWDEOLVKPHQWRID
-HZLVK VWDWH 7KH VDPH GD\ WKH DUPLHV RI (J\SW 7UDQVMRUGDQ QRZ -RUGDQ 6\ULD
/HEDQRQDQG,UDTMRLQHG3DOHVWLQLDQDQGRWKHU$UDEJXHUULOODVLQDIXOOVFDOHZDUILUVW
$UDE,VUDHOL :DU 7KH $UDEV IDLOHG WR SUHYHQW HVWDEOLVKPHQW RI D -HZLVK VWDWH DQG
WKHZDUHQGHGZLWKIRXU81DUUDQJHGDUPLVWLFHDJUHHPHQWVEHWZHHQ,VUDHODQG(J\SW
/HEDQRQ-RUGDQDQG6\ULD

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´

(J\SWMRLQHG6\ULDLQDZDURQ,VUDHOWR UHJDLQWKHWHUULWRULHVORVWLQ7KH
WZR$UDEVWDWHVVWUXFNXQH[SHFWHGO\RQ2FWREHU$IWHUFURVVLQJWKHVXH]FKDQQHOWKH
$UDE IRUFHV JDLQ D ORW RI DGYDQFHG SRVLWLRQV LQ 6LQDL 3HQLQVXOD DQG *RODQ +HLJKWV
DQGPDQDJHWRGHIHDWWKH,VUDHOLIRUFHVIRUPRUHWKHQWKUHHZHHNV,VUDHOLIRUFHVZLWK
DPDVVLYH86HFRQRPLFDQGPLOLWDU\DVVLVWDQFHPDQDJHGWRVWRSWKHDUDEIRUFHVDIWHU
DWKUHHZHHNVWUXJJOH7KH$UDERLOSURGXFLQJVWDWHVFXWRIISHWUROHXPH[SRUWVWRWKH
8QLWHG6WDWHVDQGRWKHU:HVWHUQQDWLRQVLQUHWDOLDWLRQIRUWKHLUDLGWR,VUDHO

,QDQHIIRUWWRHQFRXUDJHDSHDFHVHWWOHPHQW86VHFUHWDU\RIVWDWH+HQU\.LVVLQJHU
PDQDJHGWRZRUNRXWPLOLWDU\GLVHQJDJHPHQWVEHWZHHQ,VUDHODQG(J\SWLQWKH6LQDL
DQGEHWZHHQ,VUDHODQG6\ULDLQWKH*RODQ+HLJKWVGXULQJ

 7KH $UDE 6XPPLW LQ 5DEDW UHFRJQL]HG WKH 3/2 DV WKH VROH OHJLWLPDWH
UHSUHVHQWDWLYHRIWKH3DOHVWLQLDQSHRSOH

,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


 <DVVHU $UDIDW DGGUHVVHG WKH 81 6HFXULW\ &RXQFLO ,Q *HQHYD GHPDQGLQJ 81
HPHUJHQF\ IRUFH WR SURYLGH LQWHUQDWLRQDO SURWHFWLRQ IRU WKH 3DOHVWLQLDQ SHRSOH WR
VDIHJXDUGWKHLUOLYHVSURSHUWLHVDQGKRO\SODFHV

7KHILUVWFRPSUHKHQVLYHSHDFHWDONVEHWZHHQ,VUDHODQGGHOHJDWLRQVUHSUHVHQWLQJ
WKH3DOHVWLQLDQVDQGQHLJKERULQJ$UDEVWDWHV

,VUDHOGHSRUWHG3DOHVWLQLDQPHQWRDEXIIHU]RQHLQVRXWKHUQ/HEDQRQ7KH
GHSRUWHG 3DOHVWLQLDQV ZHUH VDLG E\ ,VUDHOL DXWKRULWLHV WR EH DFWLYH PHPEHUV RI WKH
PLOLWDQW,VODPLFUHVLVWDQFHPRYHPHQW+DPDV

$IWHUVHFUHWQHJRWLDWLRQV305DELQDQG3/2&KDLUPDQ<DVVHU$UDIDWVLJQHGDQ
KLVWRULF SHDFH DJUHHPHQW ,VUDHO DJUHHG WR DOORZ IRU 3DOHVWLQLDQ VHOIUXOH ILUVW LQ WKH
*D]D 6WULS DQG WKH:HVW%DQN WRZQ RI -HULFKR DQG ODWHULQ RWKHUDUHDV RI WKH:HVW
%DQN

)HE$Q$PHULFDQERUQ-HZLVKVHWWOHULQ+HEURQ%DUXFK*ROGVWHLQRSHQHGILUH
LQ DO+DUDQ DOHEUDKLPH FURZGHG PRVTXH NLOOLQJ  0XVOLPV DQG ZRXQGLQJ 
PRUH

0D\  ,Q &DLUR  (J\SW <DVVHU $UDIDW DQG <LW]KDN 5DELQ VLJQHG WKH ILQDO
YHUVLRQ RI WKH 'HFODUDWLRQ RI 3ULQFLSOHV :LWKLQ  KRXUV RI WKH VLJQLQJ ,VUDHOL
PLOLWDU\IRUFHVZHUHVFKHGXOHGWROHDYHWKH*D]D6WULSDQG-HULFKR

-XO\<DVVHU$UDIDWUHWXUQHGWR3DOHVWLQH

2FW7KH1REHO&RPPLWWHHLQ2VOR1RUZD\DQQRXQFHGWKDWWKHSHDFHSUL]HZDV
EHLQJDZDUGHGWR,VUDHO
V)RUHLJQ0LQLVWHU6KLPRQ3HUHVDQG3ULPH0LQLVWHU<LW]KDN
5DELQDQGWR<DVVHU$UDIDW

-DQ6XLFLGHERPEVNLOOVLQ,VUDHO

$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<LW]KDN5DELQZDVDVVDVVLQDWHGLQ7HO$YLYE\D
ULJKWZLQJH[WUHPLVW

-DQ3/2&KDLUPDQ<DVVHU$UDIDWHOHFWHG3UHVHQGDQWRIWKH3DOHVWLQLDQ1DWLRQDO
$XWKRULW\

-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 $KPHG <DVVLQ \HDUROG IRXQGHU RI WKH PLOLWDQW ,VODPLF JURXS
+DPDVZDVUHOHDVHG IURP ,VUDHOL SULVRQ DV SDUWRIDSULVRQHUVZDSWRXFKHGRIIE\D
IDLOHG,VUDHOLDVVDVVLQDWLRQDWWHPSWLQ$PPDQWKHFDSLWDORI-RUGDQ

2FW  ,VUDHOL 3ULPH0LQLVWHU%HQMDPLQ 1HWDQ\DKX DQG 3DOHVWLQLDQOHDGHU <DVVHU

$UDIDW  VLJQHG DW SHDFHIRUODQG DJUHHPHQW DW WKH FRQFOXVLRQ RI QHJRWLDWLRQV LQ WKH
86WKHDJUHHPHQWFDOOVIRU,VUDHOWRUHOLQTXLVKFRQWURORISRUWLRQVRIWKH:HVW%DQN
LQUHWXUQIRUDFWLYHPHDVXUHVWREHWDNHQE\3DOHVWLQLDQVDJDLQVWWHUURULVP

1RY3DOHVWLQLDQ3UHVLGHQW<DVVHU$UDIDWLQDXJXUDWHG*D]D,QWHUQDWLRQDO$LUSRUW

'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\<DVVHU $UDIDW 3RSH
-RKQ3DXO,,PDGHDSUD\HUIXOSLOJULPDJHWRWKHWRZQRI-HVXV
ELUWK

BBBBBBBBBBBBBBBBBBBBBBB
+LVWRU\RI3DOHVWLQH
3DJH1R RI