LVODPPHVVDJHFRP

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

LVODPPHVVDJHFRP

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

LVODPPHVVDJHFRP

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

LVODPPHVVDJHFRP

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

LVODPPHVVDJHFRP

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

LVODPPHVVDJHFRP

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

LVODPPHVVDJHFRP

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

LVODPPHVVDJHFRP

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

LVODPPHVVDJHFRP

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

LVODPPHVVDJHFRP

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

LVODPPHVVDJHFRP

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

LVODPPHVVDJHFRP

KHDYLO\WKDWLWVHHPHGDVLIKHUERQHVZRXOGEUHDNXQGHULW:HDOVROHDUQIURPRWKHUWUDGLWLRQVWKDW WKH+RO\3URSKHWGLFWDWHGWKHZKROHRI WKH6XUDKWKHVDPHQLJKW WKDW LWZDVUHYHDOHG,WVVXEMHFWPDWWHUFOHDUO\VKRZVWKDWLWPXVWKDYHEHHQUHYHDOHGGXULQJWKHODVW\HDURIWKH +RO\ 3URSKHWV OLIH DW 0DNNDK 7KH WUDGLWLRQ RI $VPD GDXJKWHU RI

LVODPPHVVDJHFRP

DSDWK\DQGKDXJKWLQHVV,WPXVWKRZHYHUEHQRWHGWKDWWKHDERYHWRSLFVKDYHQRWEHHQGHDOW ZLWK RQH E\ RQH XQGHU VHSDUDWH KHDGLQJV EXW WKH GLVFRXUVH JRHV RQ DV DFRQWLQXRXVZKROHDQGWKHVHWRSLFVFRPHXQGHUGLVFXVVLRQRYHUDQGRYHUDJDLQLQQHZDQGGLIIHUHQWZD\V7KH%DFNJURXQGRI0DNNL6XUDKV$VWKLVLVWKHILUVWORQJ0DNNL6XUDKLQWKHRUGHURIWKHFRPSLODWLRQRIWKH4XUDQLWZLOOEHXVHIXO WRH[SODLQWKHKLVWRULFDOEDFNJURXQGRI0DNNL6XUDKVLQJHQHUDOVRWKDW WKHUHDGHUPD\HDVLO\XQGHUVWDQGWKH0DNNL6XUDKVDQGRXUUHIHUHQFHVWRLWVGLIIHUHQWVWDJHVLQ FRQQHFWLRQ ZLWK RXU FRPPHQWDU\ RQ WKHP )LUVW RI DOO LW VKRXOG EH QRWHG WKDWFRPSDUDWLYHO\ YHU\ OLWWOH PDWHULDO LV DYDLODEOH LQ UHJDUG WR WKH EDFNJURXQG RI WKHUHYHODWLRQ RI 0DNNL 6XUDKV ZKHUHDV WKH SHULRG RI WKH UHYHODWLRQ RI DOO WKH 0DGDQL6XUDKVLVNQRZQRUFDQEHGHWHUPLQHGZLWKDOLWWOHHIIRUW7KHUHDUHDXWKHQWLFWUDGLWLRQVHYHQ LQUHJDUG WR WKHRFFDVLRQVRI WKHUHYHODWLRQRI WKHPDMRULW\RI WKHYHUVHV2QWKHRWKHU KDQG ZH GR QRW KDYH VXFK GHWDLOHG LQIRUPDWLRQ UHJDUGLQJ WKH 0DNNL 6XUDKV7KHUHDUHRQO\DIHZ6XUDKVDQGYHUVHVZKLFKKDYHDXWKHQWLFWUDGLWLRQVFRQFHUQLQJWKHWLPHDQGRFFDVLRQRI WKHLU UHYHODWLRQ7KLV LVEHFDXVH WKHKLVWRU\RI WKH0DNNLSHULRGKDGQRWEHHQFRPSLOHGLQVXFKGHWDLODVWKDWRIWKH0DGDQLSHULRG7KHUHIRUHZHKDYHWRGHSHQG RQ WKH LQWHUQDO HYLGHQFH RI WKHVH 6XUDKV IRU GHWHUPLQLQJ WKH SHULRG RI WKHLUUHYHODWLRQIRUH[DPSOHWKH WRSLFVWKH\GLVFXVVWKHLUVXEMHFWPDWWHUWKHLUVW\OHDQGWKHGLUHFWRULQGLUHFWUHIHUHQFHVWRWKHHYHQWVDQGWKHRFFDVLRQVRIWKHLUUHYHODWLRQ7KXVLWLVREYLRXVWKDWZLWKWKHKHOSRIVXFKHYLGHQFHDV WKLVZHFDQQRWVD\ZLWKSUHFLVLRQWKDWVXFKDQGVXFK6XUDKRUYHUVHZDVUHYHDOHGRQVXFKDQGVXFKDQRFFDVLRQ7KHPRVWZHFDQGRLVWRFRPSDUHWKHLQWHUQDOHYLGHQFHRID6XUDKZLWKWKHHYHQWVRIWKHOLIHRIWKH+RO\3URSKHWDW0DNNDKDQGWKHQFRPHWRDPRUHRUOHVVFRUUHFWFRQFOXVLRQDVWRZKDWSDUWLFXODUVWDJHDFHUWDLQ6XUDKEHORQJV,IZHNHHSWKHDERYHWKLQJVLQYLHZWKHKLVWRU\RIWKHPLVVLRQRIWKH+RO\3URSKHWDW0DNNDKFDQEHGLYLGHGLQWRIRXUVWDJHV7KH ILUVW VWDJH EHJDQ ZLWK KLV DSSRLQWPHQW DV D 0HVVHQJHU DQG HQGHG ZLWK WKHSURFODPDWLRQ RI 3URSKHWKRRG WKUHH \HDUV ODWHU 'XULQJ WKLV SHULRG WKH0HVVDJHZDVJLYHQVHFUHWO\WRVRPHVHOHFWHGSHUVRQVRQO\EXWWKHFRPPRQSHRSOHRI0DNNDKZHUHQRWDZDUHRILW7KH VHFRQG VWDJH ODVWHG IRU WZR \HDUV DIWHU WKH SURFODPDWLRQ RI KLV 3URSKHWKRRG ,WEHJDQZLWKRSSRVLWLRQE\LQGLYLGXDOVWKHQE\DQGE\LWWRRNWKHVKDSHRIDQWDJRQLVPULGLFXOHGHULVLRQDFFXVDWLRQDEXVHDQGIDOVHSURSDJDQGDWKHQJDQJVZHUHIRUPHGWRSHUVHFXWH WKRVH0XVOLPVZKRZHUHFRPSDUDWLYHO\SRRUZHDNDQGKHOSOHVV7KH WKLUGVWDJH ODVWHG IRU DERXW VL[\HDUV IURP WKHEHJLQQLQJRI WKHSHUVHFXWLRQ WR WKHGHDWKRI$EX7DOLEDQG+DGUDW.KDGLMDKLQWKHWHQWK\HDURI3URSKHWKRRG'XULQJWKLVSHULRGWKHSHUVHFXWLRQRI WKH0XVOLPVEHFDPHVRVDYDJHDQGEUXWDO WKDWPDQ\RI WKHPZHUHIRUFHGWRPLJUDWHWR+DEDVK6RFLDODQGHFRQRPLFER\FRWWZDVDSSOLHGDJDLQVWWKH+RO\3URSKHW DQG WKHPHPEHUVRI KLV IDPLO\ DQG WKRVH0XVOLPVZKR FRQWLQXHG WR VWD\ LQ0DNNDKZHUHIRUFHGWRWDNHUHIXJHLQ6KLE$EL7DOLEZKLFKZDVEHVLHJHG7KH IRXUWK VWDJH ODVWHG IRU DERXW WKUHH \HDUV IURP WKH WHQWK WR WKH WKLUWHHQWK \HDU RI3URSKHWKRRG 7KLV ZDV D SHULRG RI KDUG WULDOV DQG JULHYRXV VXIIHULQJV IRU WKH +RO\

LVODPPHVVDJHFRP

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

LVODPPHVVDJHFRP

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

LVODPPHVVDJHFRP

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

LVODPPHVVDJHFRP

EXWWRDVVHPEOHWKHPIURPDOORYHUWKHFRXQWU\IRUWKHLULQWHJUDWLRQZLWKWKHPVHOYHVWRIRUPDQRUJDQL]HGFRPPXQLW\7KXV WKH RIIHU RI WKH SHRSOH RI

LVODPPHVVDJHFRP

FRXOGVWULNHZLWKDGYDQWDJHDWWKHFDUDYDQVWUDYHOLQJRQWKHWUDGHURXWHEHWZHHQ

LVODPPHVVDJHFRP

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

LVODPPHVVDJHFRP

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

LVODPPHVVDJHFRP

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

LVODPPHVVDJHFRP

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

LVODPPHVVDJHFRP

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

LVODPPHVVDJHFRP

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

LVODPPHVVDJHFRP

,VODP 'DUXO,VODP7KH UHVXOWZDV WKDWKDUGO\D\HDUKDG3DVVHGDIWHU WKH%DWWOHRI+XQDLQZKHQWKHPDMRUSRUWLRQRI$UDELDFDPHZLWKLQWKHIROGRI,VODPDQGRQO\DIHZXSKROGHUVRIWKHROGRUGHUUHPDLQHGVFDWWHUHG RYHUVRPHFRUQHUVRIWKHFRXQWU\7KH VHFRQGHYHQW WKDW FRQWULEXWHG WRZDUGVPDNLQJ ,VODPD IRUPLGDEOHSRZHUZDV WKH&DPSDLJQ RI 7DEXN ZKLFK ZDV QHFHVVLWDWHG E\ WKH SURYRFDWLYH DFWLYLWLHV RI WKH&KULVWLDQV OLYLQJZLWKLQ RU QHDU WKH ERXQGDULHV RI WKH5RPDQ(PSLUH WR WKH QRUWK RI$UDELD$FFRUGLQJO\WKH+RO\3URSKHWZLWKDQDUP\RIWKLUW\WKRXVDQGPDUFKHGEROGO\WRZDUGVWKH5RPDQ(PSLUHEXWWKH5RPDQVHYDGHGWKHHQFRXQWHU7KHUHVXOWZDVWKDWWKHSRZHURI WKH+RO\3URSKHWDQG,VODPLQFUHDVHGPDQLIROGDQGGHSXWDWLRQVIURPDOOFRUQHUVRI$UDELDEHJDQ WRZDLWXSRQKLPRQKLV UHWXUQ IURP7DEXN LQRUGHU WRRIIHUWKHLU DOOHJLDQFH WR ,VODP DQG REHGLHQFH WR KLP 7KH +RO\ 4XUDQ KDV GHVFULEHG WKLVWULXPSK LQ6XUDK$Q1LVD :KHQ WKHVXFFRURI$OODKFDPHDQGYLFWRU\ ZDVDWWDLQHGDQG\RXVDZSHRSOHHQWHULQJWKHIROGRI,VODPLQODUJHQXPEHUV&DPSDLJQWR7DEXN7KH&DPSDLJQ WR 7DEXNZDV WKH UHVXOW RI FRQIOLFWZLWK WKH5RPDQ(PSLUH WKDW KDGVWDUWHGHYHQEHIRUHWKHFRQTXHVWRI0DNNDK2QHRIWKHPLVVLRQVVHQWDIWHU WKH7UHDW\RI+XGDLEL\DK WR GLIIHUHQW SDUWV RI$UDELD YLVLWHG WKH FODQVZKLFK OLYHG LQ WKH QRUWKHUQDUHDVDGMDFHQWWR6\ULD7KHPDMRULW\RIWKHVHSHRSOHZHUH&KULVWLDQVZKRZHUHXQGHUWKH LQIOXHQFH RI WKH 5RPDQ (PSLUH &RQWUDU\ WR DOO WKH SULQFLSOHV RI WKH FRPPRQO\DFFHSWHG LQWHUQDWLRQDO ODZ WKH\NLOOHG ILIWHHQPHPEHUVRI WKHGHOHJDWLRQQHDUDSODFHNQRZQDV=DWX7DODK RU=DWL,WODK2QO\.DDEELQ8PDLU*KLIDUL WKHKHDGRI WKHGHOHJDWLRQ VXFFHHGHG LQ HVFDSLQJ DQG UHSRUWLQJ WKH VDG LQFLGHQW %HVLGHV WKLV6KXUDKELOELQ$PUWKH&KULVWLDQJRYHUQRURI%XVUDZKRZDVGLUHFWO\XQGHUWKH5RPDQ&DHVDU KDG DOVRSXW WRGHDWK+DULWKELQ8PDLU WKHDPEDVVDGRURI WKH+RO\3URSKHWZKRKDGEHHQVHQWWRKLPRQDVLPLODUPLQLRQ7KHVHHYHQWVFRQYLQFHGWKH+RO\ 3URSKHWWKDWDVWURQJDFWLRQVKRXOGEHWDNHQLQRUGHUWRPDNH WKH WHUULWRU\DGMDFHQW WR WKH5RPDQ(PSLUH VDIHDQGVHFXUH IRU WKH0XVOLPV$FFRUGLQJO\LQWKHPRQWKRI-DPDGLXO8OD$+KHVHQWDQDUP\RIWKUHHWKRXVDQGWRZDUGVWKH6\ULDQERUGHU:KHQ WKLVDUP\UHDFKHGQHDU0DDQWKH0XVOLPVOHDUQWWKDW6KXUDKELOZDVPDUFKLQJZLWKDQDUP\RIRQHKXQGUHGWKRXVDQGWRILJKWZLWKWKHPDQGWKDW WKH &DHVDU ZKR KLPVHOI ZDV DW +LPV KDG VHQW DQRWKHU DUP\ FRQVLVWLQJ RI RQHKXQGUHG WKRXVDQG VROGLHUV XQGHU KLV EURWKHU 7KHRGRUH %XW LQ VSLWH RI VXFK IHDUIXOQHZVWKHEUDYHVPDOOEDQGRIWKH0XVOLPVPDUFKHGRQIHDUOHVVO\DQGHQFRXQWHUHGWKHELJDUP\RI6KXUDKELODW0XWDK$QGWKHUHVXOWRIWKHHQFRXQWHULQZKLFKWKH0XVOLPVZHUH ILJKWLQJ DJDLQVW IHDUIXO RGGV WKH UDWLR RI WKH WZR DUPLHV ZDV DV YHU\IDYRUDEOHIRUWKHHQHP\XWWHUO\IDLOHGWRGHIHDWWKHP7KLVSURYHGYHU\KHOSIXOIRUWKHSURSDJDWLRQ RI ,VODP $V D UHVXOW WKRVH $UDEV ZKR ZHUH OLYLQJ LQ D VWDWH RI VHPLLQGHSHQGHQFHLQ6\ULDDQGQHDU6\ULDDQGWKHFODQVRI1DMGQHDU,UDTZKRZHUHXQGHUWKHLQIOXHQFHRIWKH,UDQLDQ(PSLUHWXUQHGWRZDUGV,VODPDQGHPEUDFHGLWLQWKRXVDQGV)RUH[DPSOHWKHSHRSOHRI%DQL6XODLPZKRVHFKLHIZDV$EEDVELQ0LUGDV6XODLPL$VKMDD*KDWDIDQ=XE\DQ)D]DUDKHWFFDPHLQWRWKHIROGRI,VODPDWWKHVDPHWLPH$ERYHDOO)DUYDKELQ $PUDO-X]DPLZKRZDV WKHFRPPDQGHURI WKH$UDEDUPLHVRI

LVODPPHVVDJHFRP

WKH 5RPDQ (PSLUH HPEUDFHG ,VODP GXULQJ WKDW WLPH DQG XQGHUZHQW WKH WULDO RI KLV)DLWK LQ DZD\ WKDW ILOOHG WKHZKROH WHUULWRU\ZLWKZRQGHU:KHQ WKH&DHVDU FDPH WRNQRZ WKDW )DUYDK KDG HPEUDFHG ,VODP KH RUGHUHG WKDW KH VKRXOG EH DUUHVWHG DQGEURXJKWWRKLVFRXUW7KHQWKH&DHVDUVDLGWRKLP

LVODPPHVVDJHFRP

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

LVODPPHVVDJHFRP

:KHQ WKH\DUULYHGDW7DEXN WKH\ OHDUQW WKDW WKH&DHVDUDQGKLVDOOLHVKDGZLWKGUDZQWKHLU WURRSV IURP WKH IURQWLHUDQG WKHUHZDVQRHQHP\WRILJKWZLWK7KXV WKH\ZRQDPRUDO YLFWRU\ WKDW LQFUHDVHG WKHLU SUHVWLJHPDQLIROG DQG WKDW WRRZLWKRXW VKHGGLQJDGURSRIEORRG,QWKLVFRQQHFWLRQLW LVSHUWLQHQWWRSRLQWRXWWKDWWKHJHQHUDOLPSUHVVLRQJLYHQE\WKH^:HVWHUQ` KLVWRULDQV RI WKH FDPSDLJQV RI WKH +RO\ 3URSKHW DERXW WKH &DPSDLJQ RI7DEXN LV QRW FRUUHFW ^7KH TXDOLILFDWLRQ :HVWHUQ LQ WKH SUHYLRXV SDUHQWKHVHV ZDVDGGHGE\'DU(O+DGLWKWR$O0DZGXGLVWH[W`7KH\UHODWHWKHHYHQWLQDZD\DVLIWKHQHZVRI WKHPXVWHULQJRI WKH5RPDQDUPLHVQHDU WKH$UDELDQIURQWLHUZDVLWVHOIIDOVH7KH IDFW LV WKDW WKH &DHVDU KDG EHJXQ WR PXVWHU KLV DUPLHV EXW WKH +RO\ 3URSKHWIRUHVWDOOHGKLPDQGDUULYHGRQWKHVFHQHEHIRUHKHFRXOGPDNHIXOOSUHSDUDWLRQVIRUWKHLQYDVLRQ7KHUHIRUHEHOLHYLQJWKDWGLVFUHWLRQLVWKHEHWWHUSDUWRIYDORUKHZLWKGUHZKLVDUPLHVIURPWKHIURQWLHU)RUKHKDGQRWIRUJRWWHQWKDWWKHWKUHHWKRXVDQGILJKWHUVIRUWKH FDXVH RI ,VODP KDG UHQGHUHG KHOSOHVV KLV DUP\ RQH KXQGUHG WKRXVDQG VWURQJ DW0XWDK+HFRXOGQRW WKHUHIRUHHYHQZLWKDQDUP\RI WZRKXQGUHG WKRXVDQGGDUH WRILJKWDJDLQVWDQDUP\RIWKLUW\WKRXVDQGDQGWKDWWRRXQGHUWKHOHDGHUVKLSRIWKH+RO\3URSKHWKLPVHOI:KHQ WKH +RO\ 3URSKHW IRXQG WKDW WKH &DHVDU KDG ZLWKGUDZQ KLV IRUFHV IURP WKHIURQWLHUKHFRQVLGHUHGWKHTXHVWLRQZKHWKHU LWZRXOGEHZRUWKZKLOHWRPDUFKLQWRWKH6\ULDQWHUULWRU\RUWRKDOWDW7DEXNDQGWXUQKLVPRUDOYLFWRU\WRSROLWLFDODQGVWUDWLJLFDODGYDQWDJH+HGHFLGHGRQWKHODWWHUFRXUVHDQGPDGHDKDOWIRUWZHQW\GD\VDW7DEXN'XULQJ WKLV WLPHKHEURXJKWSUHVVXUHRQ WKHVPDOOVWDWHV WKDW OD\EHWZHHQ WKH 5RPDQ(PSLUHDQGWKH,VODPLF6WDWHDQGZHUHDWWKDWWLPHXQGHUWKHLQIOXHQFHRIWKH5RPDQVDQGVXEGXHGDQGPDGHWKHPWKHWULEXWDULHVRIWKH,VODPLF6WDWHFRQWLQXHGFRQWLQXLQJ&DPSDLJQWR7DEXN)RULQVWDQFHVRPH&KULVWLDQFKLHIV8NDLGLUELQ$EGXO0DOLN.LQGLRI'XPDWXO-DLLGDO

LVODPPHVVDJHFRP

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

LVODPPHVVDJHFRP

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

LVODPPHVVDJHFRP

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

LVODPPHVVDJHFRP

2EH\ WKH 0HVVHQJHU RI $OODK GLVFDUG VKLUN DQG ZRUVKLS $OODK DQG $OODK DORQHHVWDEOLVKWKHHQWLUHV\VWHPRI\RXUOLIHRQ WKHEHOLHIWKDW\RXVKDOOEHFDOOHGWRDFFRXQWLQWKH+HUHDIWHU7KHDGPRQLWLRQLVWKLV5HPHPEHUWKDWWKRVHSHRSOHZKRSXWWKHLUIDLWKLQWKHRXWZDUGDSSHDUDQFHRIWKLVZRUOGO\OLIHDQGUHMHFWHGWKH0HVVDJHRIWKH3URSKHWVPHWZLWKGLUHFRQVHTXHQFHV7KHUHIRUH\RXVKRXOGFRQVLGHULWVHULRXVO\ZKHWKHU\RXVKRXOGIROORZWKHVDPHZD\WKDWKLVWRU\KDVSURYHGWREHWKHSDWKWRUXLQ7KH ZDUQLQJ LV WKLV

LVODPPHVVDJHFRP

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

LVODPPHVVDJHFRP

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

LVODPPHVVDJHFRP

%XW WKHJUHDWHVW OHVVRQ WKLV VWRU\ WHDFKHV LV WKDW LI WKH%HOLHYHUSRVVHVVHV WUXH,VODPLFFKDUDFWHU DQG LV HQGRZHG ZLWK ZLVGRP KH FDQ FRQTXHU D ZKROH FRXQWU\ ZLWK WKHVWUHQJWKRI KLV FKDUDFWHU DORQH7KHPDUYHORXV H[DPSOHRI3URSKHW -RVHSK WHDFKHVXVWKDWDPDQRIKLJKDQGSXUHFKDUDFWHUFRPHVRXWVXFFHVVIXOHYHQXQGHUWKHPRVWDGYHUVHFLUFXPVWDQFHV:KHQ 3URSKHW -RVHSKZHQW WR (J\SW KHZDV RQO\ D ODG RI VHYHQWHHQ\HDUVDIRUHLJQHUDOODORQHDQGZLWKRXWDQ\SURYLVLRQVQD\KHKDGEHHQVROGWKHUHDV DVODYH$QG WKH KRUULEOH FRQGLWLRQ RI WKH VODYHV GXULQJ WKDW SHULRG LV NQRZQ WR HYHU\VWXGHQWRIKLVWRU\7KHQKHZDVFKDUJHGZLWKDKHLQRXVPRUDO&ULPHDQGVHQWWRSULVRQIRUDQ LQGHILQLWH WHUP%XW WKURXJKRXW WKLVSHULRGRIDIIOLFWLRQKHHYLQFHG WKHKLJKHVWPRUDOTXDOLWLHVZKLFKUDLVHGKLPWRWKHKLJKHVWUDQNLQWKHFRXQWU\+LVWRULFDODQG*HRJUDSKLFDO%DFNJURXQG7KH IROORZLQJ KLVWRULFDO DQG JHRJUDSKLFDO GHWDLOV ZLOO KHOS XQGHUVWDQG WKH VWRU\3URSKHW-RVHSKZDVDVRQRI3URSKHW-DFREDQGDJUDQGVRQRI3URSKHW,VDDFDQGDJUHDWJUDQGVRQRI3URSKHW$EUDKDP$OODKVSHDFHEHXSRQWKHPDOO7KH%LEOHVD\VDQGWKHDOOXVLRQVLQWKH4XUDQDOVRFRQILUPWKLVWKDW3URSKHW-DFREKDGWZHOYHVRQVIURPIRXUZLYHV3URSKHW-RVHSKDQGKLV\RXQJHUEURWKHU%HQMDPLQ ZHUHIURPRQHZLIHDQG WKHRWKHU WHQIURPWKHRWKHUZLYHV3URSKHW-DFREKDGVHWWOHGDW+HEURQ3DOHVWLQHZKHUHKLV IDWKHU3URSKHW ,VDDFDQGEHIRUHKLP3URSKHW$EUDKDPOLYHGDQGRZQHGDSLHFHRIODQGDW6KHFKHPDVZHOO$FFRUGLQJ WR WKH UHVHDUFKVFKRODUVRI WKH%LEOH3URSKHW -RVHSKZDVERUQ LQRUDERXW%&DQGWKHLQFLGHQWZLWKZKLFKWKLVVWRU\EHJLQVKDSSHQHGLQRUDERXW%&+HZDVVHYHQWHHQZKHQKHVDZWKHGUHDPDQGZDVWKURZQLQWRWKHZHOO7KLVZHOOZDVQHDU'RWKDQWRWKHQRUWKRI6KHFKHPDFFRUGLQJWR%LEOLFDODQG7DOPXGLFWUDGLWLRQVDQGWKHFDUDYDQZKLFKWRRNKLPRXWRI WKHZHOOZDVFRPLQJIURP*LOHDG7UDQV-RUGDQDQGZDVRQ LWVZD\ WR(J\SW$W WKDW WLPH)LIWHHQWK'\QDVW\UXOHGRYHU(J\SWZKRVHUXOHUVDUHNQRZQLQKLVWRU\DV WKH+\NVRVNLQJV7KH\EHORQJHG WR WKH$UDEUDFHEXWKDG PLJUDWHG IURP 3DOHVWLQH DQG 6\ULD WR (J\SW LQ RU DERXW % & DQG WDNHQSRVVHVVLRQRIWKHFRXQWU\7KH$UDEKLVWRULDQVDQGWKHFRPPHQWDWRUVRIWKH4XUDQKDYHJLYHQWKHPWKHQDPHRI$PDOLTWKH$PDOHNLWHVDQGWKLVKDVEHHQFRUURERUDWHGE\WKHUHFHQWUHVHDUFKHVPDGHE\WKH(J\SWRORJLVWV7KH\ZHUHIRUHLJQLQYDGHUVZKRKDGJRWWKH RSSRUWXQLW\ RI HVWDEOLVKLQJ WKHLU NLQJGRP EHFDXVH RI WKH LQWHUQDO IHXGV LQ WKHFRXQWU\7KDWLVZK\WKHUHZDVQRSUHMXGLFHLQWKHZD\RI3URSKHW-RVHSKVDVFHQGDQF\WRSRZHUDQGLQWKHVXEVHTXHQWVHWWOHPHQWRI WKH&KLOGUHQRI,VUDHO LQ WKHPRVWIHUWLOHUHJLRQRI(J\SW7KH\FRXOGJDLQWKDWSRZHUDQGLQIOXHQFHZKLFKWKH\GLGEHFDXVHWKH\EHORQJHGWRWKHVDPHUDFHDVWKHIRUHLJQUXOHUVRI(J\SW7KH +\NVRV UXOHG RYHU (J\SW XS WR WKH HQG RI WKH ILIWHHQWK FHQWXU\ % & DQGSUDFWLFDOO\DOOWKHSRZHUVUHPDLQHGLQWKHKDQGVRIWKH,VUDHOLWHV7KH4XUDQKDVPDGHDUHIHUHQFHWRWKLVLQYRI$O0DLGDK+HUDLVHG3URSKHWVDPRQJ\RXDQGPDGH\RX UXOHUV 7KHQ WKHUH DURVH D JUHDW QDWLRQDOLVW PRYHPHQW ZKLFK RYHUWKUHZ WKHSRZHURIWKLVG\QDVW\DQGH[LOHGRUVRRIWKH$PDOHNLWHV$VDUHVXOWRIWKLVDYHU\ELJRWHGG\QDVW\RI&RSWVFDPHLQWRSRZHUDQGXSURRWHG HYHU\WKLQJFRQQHFWHGZLWK

LVODPPHVVDJHFRP

WKH $PDOHNLWHV 7KHQ VWDUWHG WKDW SHUVHFXWLRQ RI WKH ,VUDHOLWHV ZKLFK KDV EHHQPHQWLRQHGLQFRQQHFWLRQZLWKWKHVWRU\RI3URSKHW0RVHV:HDOVROHDUQIURPWKHKLVWRU\RI(J\SWWKDWWKH+\NVRVNLQJVGLGQRWDFNQRZOHGJHWKHJRGV RI(J\SWDQGWKHUHIRUHKDGLPSRUWHGWKHLURZQJRGVIURP6\ULDZLWKDYLHZWR VSUHDGLQJ WKHLU RZQ UHOLJLRQ LQ (J\SW 7KLV LV WKH UHDVRQZK\ WKH4XUDQ KDV QRWFDOOHGWKHNLQJZKRZDVWKHFRQWHPSRUDU\RI3URSKHW-RVHSKE\WKHWLWOHRI3KDUDRKEHFDXVH WKLV WLWOHZDVDVVRFLDWHGZLWK WKHUHOLJLRQRI WKHRULJLQDOSHRSOHRI(J\SWDQGWKH +\NVRV GLG QRW EHOLHYH LQ LW EXW WKH %LEOH HUURQHRXVO\ FDOOV KLP 3KDUDRK ,WDSSHDUVWKDWWKHHGLWRUVRIWKH%LEOHKDGWKHPLVXQGHUVWDQGLQJWKDWDOOWKHNLQJVRI(J\SWZHUH3KDUDRKV7KHPRGHUQUHVHDUFKVFKRODUVZKRKDYHPDGHDFRPSDUDWLYHVWXG\RIWKH%LEOH DQG WKH(J\SWLDQKLVWRU\ DUH JHQHUDOO\RI WKHRSLQLRQ WKDW$SRSKLVZDV WKH+\NVRVNLQJZKRZDVWKHFRQWHPSRUDU\RI3URSKHW-RVHSK$WWKDWWLPH0HPSKLVZDVWKHFDSLWDORI(J\SWZKRVHUXLQVDUHVWLOOIRXQGRQWKH1LOHDWDGLVWDQFHRIPLOHVVRXWKRI&DLUR:KHQ3URSKHW-RVHSKZDVWDNHQWKHUHKHZDVRU\HDUVROG+HUHPDLQHGLQWKHKRXVHRI$]L]IRUWKUHH\HDUVDQGVSHQWQLQH\HDUVLQSULVRQDQGWKHQEHFDPHWKHUXOHURIWKHODQGDWWKHDJHRIWKLUW\DQGUXOHGRYHU(J\SWLQGHSHQGHQWO\ IRU HLJKW\ \HDUV ,Q WKH QLQWK RU WHQWK \HDU RI KLV UXOH KH VHQW IRU KLVIDWKHU 3URSKHW -DFRE WR FRPH IURP 3DOHVWLQH WR (J\SW ZLWK DOO WKH PHPEHUV RI KLVIDPLO\DQGDFFRUGLQJWRWKH%LEOHVHWWOHGWKHPLQWKHODQGRI*RVKHQZKHUHWKH\OLYHGXSWRWKHWLPHRI3URSKHW0RVHV7KH%LEOHVD\VWKDWEHIRUHKLVGHDWK3URSKHW-RVHSKERXQGKLVNLQGUHGE\DQRDWKZKHQ\RXUHWXUQIURPWKLVFRXQWU\WRWKHKRXVHRI\RXUIRUHIDWKHUV\RXPXVWWDNHP\ERQHVRXWRIWKLVFRXQWU\ZLWK\RX6RKHGLHGDKXQGUHGDQGWHQ\HDUVROGDQGWKH\HPEDOPHGKLP7KRXJK WKH VWRU\ RI 3URSKHW -RVHSK DV JLYHQ LQ WKH 4XUDQ GLIIHUV YHU\PXFK LQ LWVGHWDLOVIURPWKDWJLYHQLQWKH%LEOHDQGWKH7DOPXGWKH7KUHHJHQHUDOO\DJUHHLQUHJDUGWRLWVFRPSRQHQWSDUWV:HVKDOOH[SODLQWKHGLIIHUHQFHVZKHQDQGZKHUHQHFHVVDU\LQRXU([SODQDWRU\1RWHV5DG1DPH7KLV6XUDKWDNHVLWVQDPHIURPWKHZRUGDU5DGWKXQGHU WKDWRFFXUV LQY,WLVPHUHO\ WKH V\PEROLFQDPHRI WKH6XUDKDQGGRHVQRW LQDQ\ZD\PHDQ WKDW WKH6XUDKGHDOVZLWKWKHVFLHQWLILFSUREOHPVFRQQHFWHGZLWKWKXQGHU3HULRGRI5HYHODWLRQ7KHLQWHUQDOHYLGHQFHYYDQGYYVKRZVWKDWWKLV6XUDKZDVUHYHDOHGLQWKHODVWVWDJHRIWKH0LVVLRQRIWKH+RO\3URSKHWDW0DNNDKDQGGXULQJWKHVDPHSHULRGLQZKLFK6XUDKV

LVODPPHVVDJHFRP

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

LVODPPHVVDJHFRP

HYLOGRHUVDQGWKH%HOLHYHUVKDYHEHHQFRPIRUWHGDVZHUHWKHEHOLHYHUVEHIRUHWKHPDQG DIWHU WKHP VHWWOH \RX LQ WKH ODQG /LNHZLVH WKH VWHUQ ZDUQLQJ FRQWDLQHG LQ WKHFRQFOXGLQJSRUWLRQYYDOVRFRQILUPVWKDWWKH6XUDKUHODWHVWRWKHODVWVWDJHRIWKH0DNNDQ3HULRG&HQWUDO7KHPHDQG3XUSRVH7KLV6XUDKLVDQDGPRQLWLRQDQGDZDUQLQJWRWKHGLVEHOLHYHUVZKRZHUHUHMHFWLQJWKH0HVVDJHRIWKH+RO\3URSKHWDQGGHYLVLQJFXQQLQJVFKHPHVWRGHIHDWKLV0LVVLRQ%XWZDUQLQJ UHSURRI FHQVXUH DQG UHSURDFKGRPLQDWH DGPRQLWLRQ7KLV LVEHFDXVHDJRRGGHDORIDGPRQLWLRQKDGDOUHDG\EHHQPDGHLQWKHSUHFHGLQJ6XUDKVEXWLQVSLWHRIWKLVWKHLUREGXUDF\HQPLW\DQWDJRQLVPPLVFKLHISHUVHFXWLRQHWFKDGUDWKHULQFUHDVHG+LMU1DPH7KLV6XUDKWDNHVLWVQDPHIURPY3HULRGRI5HYHODWLRQ,WLVFOHDUIURPLWVWRSLFVDQGVW\OHWKDWWKHSHULRGRILWVUHYHODWLRQLVDERXWWKHVDPHDVWKDW RI 6XUDK ,EUDKLP IRU WZR WKLQJV DUH TXLWH SURPLQHQW LQ LWV EDFNJURXQG )LUVW LWDSSHDUVIURPWKHUHSHDWHGZDUQLQJVLQWKLV6XUDKWKDWLQVSLWHRIWKHIDFWWKDWWKH+RO\3URSKHWKDGEHHQSURSDJDWLQJ WKH0HVVDJH IRUPDQ\\HDUVKLVSHRSOH LQJHQHUDOKDGQRWVKRZQDQ\LQFOLQDWLRQWRZDUGVLWVDFFHSWDQFHQD\WKH\KDGEHFRPHPRUHDQGPRUHREGXUDWH DQG VWXEERUQ LQ WKHLU DQWDJRQLVP HQPLW\ DQG ULGLFXOH ZLWK WKH SDVVDJH RIWLPH6HFRQGO\E\WKDWWLPHWKH+RO\3URSKHWKDGEHJXQWRIHHODOLWWOHWLUHGRIPDNLQJVWUHQXRXVHIIRUWVWRHUDGLFDWHGLVEHOLHIDQGRSSRVLWLRQRIKLVSHRSOH7KDWLVZK\$OODKKDVFRQVROHGDQGFRPIRUWHGKLPRYHUDQGRYHUDJDLQE\ZD\RIHQFRXUDJHPHQW7RSLFVDQGWKH&HQWUDO7KHPH7KRXJK WKH PDLQ WRSLFV RI WKH VXUDK DUH D ZDUQLQJ WR WKRVH ZKR UHMHFWHG KLV0HVVDJH RSSRVHG LW WRRWK DQG QDLO DQG ULGLFXOHG KLP DQG E FRPIRUW DQGHQFRXUDJHPHQW WR WKH+RO\3URSKHW LWGRHVQRWPHDQWKDWWKLV6XUDKGRHVQRWFRQWDLQDGPRQLWLRQDQGLQVWUXFWLRQV$VDPDWWHURIIDFWWKH4XUDQQHYHUFRQILQHVLWVHOIWRPHUHZDUQLQJ UHEXNH DQG FHQVXUH EXW UHVRUWV WR SUHFHSW LQ HYHU\ VXLWDEOH SODFH$FFRUGLQJO\ WKLV 6XUDK FRQWDLQV EULHI DUJXPHQWV IRU 7DXKLG RQ WKH RQH KDQG DQGDGPRQLWLRQLQWKHVWRU\RI$GDPDQG6DWDQRQWKHRWKHU1DKO1DPH7KH QDPH $Q1DKO RI WKLV 6XUDK KDV EHHQ WDNHQ IURP Y 7KLV LV PHUHO\ WRGLVWLQJXLVKLWIURPRWKHU6XUDKV3HULRGRI5HYHODWLRQ7KH IROORZLQJ LQWHUQDO HYLGHQFH VKRZV WKDW WKLV 6XUDK ZDV UHYHDOHG GXULQJ WKH ODVW0DNNDQVWDJHRI3URSKHWKRRG9FOHDUO\VKRZVWKDWSHUVHFXWLRQKDGIRUFHGVRPH0XVOLPVWRHPLJUDWHWR+DEDVKEHIRUHWKHUHYHODWLRQRIWKLV6XUDK

LVODPPHVVDJHFRP

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

LVODPPHVVDJHFRP

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

LVODPPHVVDJHFRP

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

LVODPPHVVDJHFRP

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