Handbook of Knots and Splices - Charles E. Gibson

$Q LQFUHGLEOH DPRXQW RI H[WUHPHO\ XVHIXO LQIRUPDWLRQ RQ WKH VXEMHFW RI NQRWV KLWFKHV VSOLFHV IDQF\ ZRUN EORFN DQG WDFNOH DQG ZLUH URSH 6WDUWLQJ RXW ZLWK D GHVFULSWLRQ RI WKH FRQVWUXFWLRQ DQG FDUH RI URSH    WKHUH DUH WDEOHV RI WKH EUHDNLQJ VWUHQJWKV DQG ZHLJKWV RI YDULRXV URSHV GHILQLWLRQV RI WKH QDPHV DSSOLHG E\ VDLORUV WR GLIIHUHQW W\SHV RIOLQHVDQGDGYLFHRQFDUHDQGKDQGOLQJ

²
&+$5/(6( *,%621

+DQGERRN RI .QRWV DQG 6SOLFHV

DQGRWKHUZRUNZLWK KHPSHQDQGZLUHURSHV

%$51(6

12%/(

% 2 2 . 6 1 ( :

< 2 5 .

&RS\ULJKW‹E\&KDUOHV(*LEVRQ $OOULJKWVUHVHUYHG

7KLVHGLWLRQSXEOLVKHGE\%DUQHV 1REOH,QF E\DUUDQJHPHQWZLWK(PHUVRQ%RRNV,QF %DUQHV 1REOH%RRNV

,6%1

3ULQWHGDQGERXQGLQWKH8QLWHG6WDWHVRI$PHULFD

0

+DQGERRNRI .1276 63/,&(6 ,QKLV+DQGERRNRI.QRWV 6SOLFHV

&KDUOHV*LEVRQJLYHVXVDSUDFWLFDODQG VLPSOHJXLGHWRDOOWKHEDVLFWHFKQLTXHV

LQYROYHGLQW\LQJKHPSHQV\QWKHWLF DQGZLUHURSHV*LEVRQDOVRDGYLVHV

UHJDUGLQJWKHFRQVWUXFWLRQFDUHDQG VWUHQJWKRIURSHVEORFNVDQGWDFNOHV

IDQF\ZRUNZLWKURSHVLQFOXGLQJPDWV DQGSODLWVDQGVSOLFLQJ7KHKHDUWRI WKHERRNKRZHYHULVWKHNQRWVDQG

URSHZRUNGHVFULEHGLQGHWDLODQGFOHDUO\

LOOXVWUDWHGIRUHDV\LQVWUXFWLRQ7KLV LQFOXGHV

$UWLILFLDO(\H6SOLFH %DFN6SOLFH %DOH6OLQJ

%HJJDUPDQ V.QRW %ODFNZDOO+LWFK %RZOLQHV

&DUULFN%HQG &DWVSDZ

&KDLQ6SOLFH &ORYH+LWFK

&RPPRQ6HQQLW 'LDPRQG.QRW 'UDZ+LWFK

)LJXUHRI(LJKW.QRW )LVKHUPDQ V%HQG

)OHPLVK(\H6SOLFH )UHQFK%RZOLQH

FRQWLQXHGRQEDFNIODS

FRQWLQXHGIURPIURQWIODS

*UDQQ\.QRW /RQJ6SOLFH

0DULQHU V6SOLFH

0DUOLQH6SLNH+LWFK

0LGVKLSPDQ V+LWFK 2YHUKDQG.QRW

2YHUKDQG.QRW3ODLW 3DUEXFNOH 5HHI.QRW

5RDGPHQGHU V.QRW 5ROOLQJ+LWFK

5RXQG6HQQLW

5RXQG7XUQDQG7ZR+DOI+LWFKHV 5XQQLQJ%RZOLQH

6DLOPDNHU V(\H6SOLFH 6FDIIROG+LWFK 6KURXG.QRW

6OLSSHU\%HQG 6QDNLQJ

6SDQLVK+LWFKLQJ

6SLQGOH(\H6SOLFH 6TXDUH/DVKLQJ 6WRSSHU.QRWV

6WXQVDLO+DO\DUG%HQG 7LPEHU+LWFK 7XUN V+HDG

:DOODQG&URZQ3ODLW DQGPDQ\PRUH

-DFNHWGHVLJQE\7HUU\'LOO

%$51(6 12%/( %

2

1 ( :

2

.

6

< 2 5 .

$FNQRZOHGJHPHQW

,$0LQGHEWHGWR0HVVUV%ULWLVK5RSHV/WGRI/RQGRQ (QJODQGDQGWKH3O\PRXWK&RUGDJH&RPSDQ\RI 3O\PRXWK0DVVDFKXVHWWVIRUPXFKRIWKHLQIRUPDWLRQLQ &KDSWHUVDQG



)RUHZRUG

       

&RQWHQWV



3$5721(

+HPSHQDQG6\QWKHWLF5RSHV 7KHFRQVWUXFWLRQDQGFDUHRIURSHV +LWFKHVZLWKDVLQJOHHQG .QRWVMRLQLQJWZRURSHV .QRWVZLWKDURSH VRZQVWUDQGV 6SOLFLQJKHPSHQURSHV 6OLQJLQJODVKLQJDQGVHL]LQJ 0RUHIDQF\ZRUNPDWVDQGSODLWV %ORFNVDQGWDFNOHV 3$577ZR

6WHHO:LUH5RSH

7KHFRQVWUXFWLRQDQGFDUHRIZLUHURSHV :LUHVSOLFLQJ 7DLOSLHFH ,QGH[

       

   

)RUHZRUG

620( SHRSOH HDUQ WKHLU OLYLQJ E\ XVLQJ URSHV 7KH\ DUH WKH

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



)25(:25'

)RUDVLPLODUUHDVRQ&KDSWHUGHDOVZLWKYDULRXVW\SHV RIEORFNVDQGSXUFKDVHV 7KLV ERRN GRHV QRW FODLP WR SURYLGH D UHDG\PDGH DQVZHU IRU HYHU\ SUREOHP \RX DUH OLNHO\ WR IDFH LQ XVLQJ URSHV 7R GR VR ZRXOG EH WR LQYLWH WKH LQHYLWDEOH XQIRUH VHHDEOH VLWXDWLRQ IRU ZKLFK D VROXWLRQ FDQ RQO\ EH ZRUNHG RXW RQ WKH VSRW EXW LW GRHV WU\ WR H[SODLQ WKH SULQFLSOH XQGHUO\LQJ URSH FRQVWUXFWLRQ DQG XVDJH DQG ZLWK WKHVH DOOLHGWRFRPPRQVHQVHVRPHVROXWLRQZLOOXVXDOO\EHIRXQG

3$57 21(

+(03(1$1'6<17+(7,&523(6

&+$37(521(

7KHFRQVWUXFWLRQDQGFDUHRI URSHV

/21* DJR PHQ GLVFRYHUHG WKDW FHUWDLQ ILEUHV VKRUW LQ

WKHPVHOYHVFRXOGEHVSXQLQWRORQJWKUHDGVRIFRQVLGHUDEOH FRPELQHG VWUHQJWK DQG WKH\ DSSOLHG WKLV GLVFRYHU\ WR WKH PDQXIDFWXUH RI FORWK DQG PDQ\ RWKHU DUWLFOHV LQFOXGLQJ² E\QRPHDQVWKHOHDVWLPSRUWDQW²URSH ,523(0$.,1*0$7(5,$/6

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





.1276$ 1 ' 6 3 / , & ( 6

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²LW VWUHWFKHV XS WR ILIW\ SHU FHQW²DQG OLJKW HQRXJK WR IORDW RQ ZDWHU EXW LW KDV RQO\ D TXDUWHU WKH VWUHQJWKRIPDQLODDQGIDUOHVVGXUDELOLW\0RUHRYHULWVRRQ URWVLIQRWGULHGEHIRUHEHLQJVWRZHGDZD\ 6\QWKHWLFPDQPDGHILEUHV 1\ORQ :HLJKW IRU ZHLJKW WKLV PDNHV WKH VWURQJHVW URSH RIDOODQLPDOPLQHUDORUYHJHWDEOHSOXVZKLFKWKDQNVWR

7 + ( &216758&7,21$1'&$5(2)523(6

LWVHODVWLFLW\LWKDVDQDELOLW\WRZLWKVWDQGVXGGHQVKRFN ORDGLQJ WKDW PDNHV LW LGHDO IRU FOLPEHUV 7KLV TXDOLW\ KRZ HYHULVDGLVDGYDQWDJHZKHUHDURSHPXVWQRW JLYH DWDOO DIWHU KDYLQJ EHHQ VHW XS WDXW HJ KDO\DUGV 1\ORQ URSH KDV WKH IXUWKHU DWWUDFWLRQV RI EHLQJ VPRRWK FRPSOHWHO\ IUHH IURP URW RU PLOGHZ HDV\ WR KDQGOH ZKHWKHU ZHW RU GU\ UHVLVWDQW WR DONDOLQH FKHPLFDOV DQG YHU\ DWWUDFWLYH IRU IDQF\ ZRUN 'DFURQ $OWKRXJK QRW TXLWH VR VWURQJ DV 1\ORQ 'DFURQ URSH KDV PRVW RI LWV DWWUDFWLYH TXDOLWLHV ,W LV KRZHYHU UHVLVWDQW WR DFLGV QRW DONDOLV DQG KDV OHVV HODVWLFLW\ ZKLFK RIFRXUVHPDNHVLWPRUHVXLWDEOHIRUFHUWDLQSXUSRVHV

0HWDOOLF 6WHHO :LUHV LH ORQJ GUDZQRXW WKUHDGV  FDQ EH PDGH IURP PDQ\ PHWDOV EXW WKH RQO\ RQH RILPSRUWDQFHLQURSH PDNLQJ LV VWHHO %HFDXVH VWHHO ZLUH URSH GLIIHUV FRQVLGHUDEO\ LQVWUXFWXUHDQGKDQGOLQJIURPKHPSHQDQGV\QWKHWLFOLQHV LWLVWUHDWHGVHSDUDWHO\LQ3DUW7ZR

,,7+(6758&785(2)+(03(1523(

:KHQ UHDGLQJ WKURXJK D ERRN VXFK DVWKLVRQHLWLVEHVW WRKDYHDOHQJWKSIURSHKDQG\ZLWKZKLFKWRSUDFWLVHWKH YDULRXV EHQGV KLWFKHV NQRWV VSOLFHV VHL]LQJV DQG ODVKLQJV DVWKH\DUHGHVFULEHG²RQWKHVSRWDVLWZHUH,I\RXKDYH VXFKDOHQJWKE\\RXH[DPLQHLWQRZ,I\RXKDYHQRWORRN DWILJXUH 7KHLOOXVWUDWLRQVKRZVDKHPSHQURSHRIWKUHHVHSDUDWH VWUDQGVZKLFKKDYHEHHQWZLVWHGWRJHWKHUVRWKDWDV\RX ORRN DW WKHP WKH\ VSLUDO DZD\ IURP OHIW WR ULJKW ,W LV WKHUHIRUHD ULJKWKDQGHG KDZVHUODLG URSH 6LQFH WKH YDVW PDMRULW\RIURSHVLQRUGLQDU\HYHU\GD\XVHDUHRIWKHVDPH



.1276$1'63 / , & ( 6

FRQVWUXFWLRQLWLVSUREDEOHWKDW\RXUVWRRLVKDZVHU ODLG +RZHYHU LQ \RXU OHQJWK WKH VWUDQGV ZKLOVW VWLOO WKUHH LQ QXPEHU PD\ VSLUDO DZD\ IURP ULJKW WR OHIW ,Q WKDW HYHQW \RXUVLVOHIWEDQGHGKDZVHUODLGURSH ,WLVSRVVLEOHWKRXJK WKDW\RXUURSHKDVIRXUVWUDQGVQRWWKUHHODLGXSULJKW

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

7+(&216758&7,21$1'&$5(2)523(6

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

RU EDUNHG  RU WUHDWHG ZLWK D VSHFLDO ZDWHUSURRI GUHVVLQJ EXWWKRVHZKLFKZLOOEHZHWWHGRQO\RFFDVLRQDOO\HJE\ UDLQWKURXJKEHLQJH[SRVHGWRWKHZHDWKHUDUHPHUHO\



.1276$1'6 3 /, & ( 6

VRDNHGLQWDU7DUULQJPDNHVDURSHVWLIIHUDQGKHDYLHUDQG UHGXFHV LWV VWUHQJWK E\ RQHVHYHQWK LI ILUPODLGRQHVL[WKLI SODLQODLGDQGRQHWKLUGLIVRIWODLG

,,,7+(675(1*7+2)523(6

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

DQGVRRQ 1DWXUDOO\ FRQVXOWLQJ D WDEOH RIEUHDNLQJ VWUHQJWKVVXFK DVLVJLYHQRSSRVLWHLVSUHIHUDEOHWRDQDSSUR[LPDWHUXOHEXW VXFKDWDEOHLVQRWDOZD\VUHDGLO\DYDLODEOH,QDQ\FDVHQR

7+(&216758&7,21$1'&$5(2)523(6

URSH VKRXOG HYHU NQRZLQJO\ DQG GHOLEHUDWHO\ EH VXEMHFWHG WRDORDGDQ\ZKHUHQHDULWVEUHDNLQJVWUHQJWK,QIDFWRQO\ KDOIWKHODWWHUVKRXOGEHWDNHQDVWKHVDIHZRUNLQJORDG0RUH RYHU LW LV VLPSOH FRPPRQ VHQVH WR UHPHPEHU WKDW URSHV ZHDNHQZLWKDJHXVHDQGH[SRVXUHWRZHDWKHU

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



.1276$1'63/,&(6

1RWHVD 7KHILJXUHVIRUPDQLODDUHIRUWKUHHVWUDQGHGKDZVHUODLG URSHV)RXUVWUDQGHGVKURXGODLGURSHVDUHVOLJKWO\OLJKWHUDQGQLQH VWUDQGHGFDEOH RUZDWHUODLGURSHVVOLJKWO\KHDYLHU E 2WKHUV\QWKHWLFURSHVDUH 3RO\HWK\OHQH-XVWRYHUKDOIWKHZHLJKWWZRWKLUGVWKHVWUHQJWKRI 'DFURQ 0RQRILODPHQWSRO\SURS\OHQH6OLJKWO\OLJKWHUDQGVWURQJHUWKDQ SRO\HWK\OHQH 0XOWLILODPHQWSRO\SURS\OHQH6OLJKWO\ZHDNHUWKDQ'DFURQEXW RQO\WZRWKLUGVWKHZHLJKW

,960$//678))6

6PDOOVWXII LVWKHVDLORU VH[SUHVVLRQIRUWKHPDQ\VPDOOHU QRQVWDQGDUGOLQHV6RPHRIWKHPRVWFRPPRQDUH

%ROWURSH 6WULFWO\ VSHDNLQJ QRW DOZD\V VPDOO  DV LW UDQJHVLQVL]HIURPLQWRLQ,WLVDJRRGTXDOLW\VRIWODLG SOLDEOHURSHVHZQWRWKHHGJHVRIVDLOVWRVWUHQJWKHQWKHP

7+(&216758&7,21$1'&$5(2)523(6

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

.LQNVLQDURSHUHGXFHLWVVWUHQJWK7KHUHIRUHDOZD\V SURSHUO\FRLOORRVHHQGVRUWKHZKROHURSHZKHQQRORQJHU LQXVHDQGKDQJXSWKHFRLORUVWRZLWQHDWO\RQDVKHOI GHFN RU JURXQG $ ULJKWKDQGHG URSH VKRXOG EH FRLOHG ULJKWKDQGHG LH FORFNZLVH DQG D OHIWKDQGHG URSH DQWL FORFNZLVH :KHQEUHDNLQJRSHQDQHZFRLORIURSHUHDGWKH LQVWUXFWLRQVRQWKHODEHOLIDQ\,IWKHUHDUHQRQHOD\WKH FRLOVRWKDW\RXFDQOHDGRIIWKHHQG\RXKDYHGHFLGHGWR VWDUWZLWKLHHLWKHUWKHLQVLGHRUWKHRXWVLGHDQWLFORFNZLVH ,I\RXOHDGLWRIIWKHRWKHUZD\DQGDOOGLUHFWLRQV



.1276$1'6 3 / , & ( 6

DUH UHYHUVHG RI FRXUVH IRU D OHIWKDQGHG URSH  LW ZLOO NLQN 7R UHPRYH WKHVH NLQNV FRLO LW GRZQ DQWLFORFNZLVH SDVV WKH HQG WKURXJK WKH FHQWUH SXOO LW IURPXQGHUWKHFRLODQG FRLO GRZQ DJDLQ 5HSHDW WKLV RSHUDWLRQ²FDOOHG WKRURXJK IRRWLQJDURSH²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

7+(&216758&7,21$1'&$5(2)523(6

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

:KLSSLQJLVELQGLQJWKHHQGRIDURSHZLWKWZLQHRUWKUHDG SUHIHUDEO\ZD[HG:KDWHYHUWKHW\SHRIZKLSSLQJXVHGWKH ELQGLQJPXVWEHWLJKWDQGVWDUWDZD\IURPWKHHQGRIWKH URSHDQGZRUNWRZDUGVLW 7RPDNHD&RPPRQ:KLSSLQJ/D\WKHQRQZRUNLQJHQG



.1276$1'63/,&(6

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

7+(&216758&7,21$1'&$5(2)523(6

WRVWDUWZLWKDVLQILJXUHG(DFKLVODWHUSDVVHGRYHUWKHWRS RILWVRZQVWUDQGDQGORRS,LVKDXOHGWLJKWILUVWE\SXOOLQJ RQORRS,,

6QDNLQJ RQ D ODUJH SODLQ ZKLSSLQJ DGGV VHFXULW\ DQG GHFRUDWLRQ  3DVV WKH WZLQH WKURXJK WKH URSH ZLWK D QHHGOH3DVVWKHWZLQHURXQGWKHURSHRQFHEDFNDQG IRUWKDFURVVWKHZKLSSLQJDOWHUQDWHO\RYHUDQGXQGHULWV



.1276$1'63/,&(6

WRSDQGERWWRPWXUQV3DVVWKHWZLQHEDFNWKURXJKWKH URSH 3RLQWLQJDURSH LV WKH PRVW GXUDEOH VLJKWO\ ZD\ RI SUR WHFWLQJ LWV HQG EXW EHFDXVH LW LV FRQVLGHUDEO\ PRUH FRPSOL FDWHGWKDQZKLSSLQJLWLVGHVFULEHGLQ&KDSWHU $&RDFK:KLSSLQJ DQHODERUDWHSLHFHRIIDQF\ZRUN QRW XVXDOO\ SHUIRUPHG RQ D URSH LV DOVR GHVFULEHG LQ &KDSWHU

9,,:250,1*3$5&(//,1*$1'6(59,1*

7KHVH WKUHH RSHUDWLRQV ZKLFK RIWHQ EXW QRW LQYDULDEO\ JR WRJHWKHUDUHDOOLOOXVWUDWHGLQILJXUH :RUPLQJPDNHVWKHVXUIDFHRIDURSHVPRRWKDQGURXQG UHDG\ IRU SDUFHOOLQJ 6LPSO\ ELQG VSXQ\DUQ RU VRPH RWKHU VPDOOFRUGLQWRWKHKROORZVEHWZHHQWKHVWUDQGV

3DUFHOOLQJ JLYHV D ILUP VXUIDFH IRU VHUYLQJ EXW KDV D XVH LQLWVHOILQWKDWLWSUHYHQWVZDWHUIURPHQWHULQJDQGDWWDFNLQJ WKHURSH)RUWKLVUHDVRQZKHQSDUFHOOLQJDURSHWKDWLVRU ZLOOEHYHUWLFDOUDWKHUWKDQKRUL]RQWDODOZD\VVWDUWIURPWKH

7+(&216758&7,21$1'&$5(2)523(6

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

+LWFKHVZLWKDVLQJOHHQG &+$37(57:2

,7+(-$00,1*7851

$ +,7&+ KROGV EHFDXVH RI WKH IULFWLRQ VHW XS EHWZHHQ WZR VXUIDFHVRIURSHSUHVVHGWRJHWKHUZKLFKLVZK\KLWFKHVZLWK VOLSSHU\URSHRUZLUHDUHQRWVRHIILFLHQW$VLPSOH5RXQG 7XUQURXQGDZRRGHQSRVWZLOOUHVLVWDFRQVLGHUDEOHSXOOLI WKHHQGLVKHOGE\KDQG)LJ DVPRXQWDLQHHUVNQRZIRU

WKH\XVHLWDURXQGWKHLULFHD[HVWREHOD\HDFKRWKHU+HQFH DOVR WKH GHVFULSWLRQ RI VRPHRQH VXGGHQO\ VWRSSHG IURP GRLQJVRPHWKLQJWKDW KHZDVEURXJKWXSZLWKDURXQG WXUQ  0RUH WKDQRQHWXUQRUEHWWHUVWLOOILJXUHRIHLJKWLQJ URXQGWZRSRVWVRUEROODUGVRUDURXQGDEHOD\LQJSLQRU DFOHDWLVPRUHHIILFLHQWEXWWKHUHVLVWDQFHRIWKHKROGLV HQRUPRXVO\LQFUHDVHGLIWKHODVWWXUQLVWDNHQDVDMDPPLQJ WXUQ,QILJXUHWKHURSHKDVILUVWEHHQWDNHQIRUDURXQG WXUQWKHQILJXUHRIHLJKWHGURXQGWKHFOHDWDQGILQDOO\ 

+,7&+(6:,7+$6,1*/((1'



MDPPHG VRWKDWWKHSDUWRIWKHURSHRQWRZKLFKWKHVWUDLQ LVFRPLQJFDOOHGWKHVWDQGLQJSDUW QRZULGHVRYHUWKHSDUW IXUWKHU UHPRYHG IURP VWUDLQ FDOOHGWKH ORRVH HQG 1RZ WKHJUHDWHUWKHSXOORQWKHURSHWKHPRUHWLJKWO\ZLOOWKH

VWDQGLQJ SDUW MDP GRZQ RQ WKH HQG DQG SUHYHQW LW IURP VOLSSLQJWKURXJK %XWEH ZDUQHGO6XFK D MDPPLQJ WXUQ VKRXOG QHYHU EH WDNHQZLWKDQ\URSHWKDWPD\QHHGWREHIUHHGLQDKXUU\ HJWKHVKHHWRIDVDLOIRULWPD\KDYHMDPPHGVRWLJKWO\DV WRGHI\TXLFNUHOHDVH 7DNLQJ WKH MDPPLQJ WXUQ RII WKH FOHDW LQ ILJXUH  UHYHDOV VLPSO\DORRS)LJ FRQVLVWLQJRI,WKHORRVHHQGZKLFK



.1276$1'6 3 /, & ( 6

KHUHDQGWKURXJKRXWWKHERRNLVVKRZQZKLSSHGLQRUGHU WR DLG LGHQWLILFDWLRQ  ,, D ORRS RU ELJKW ,,, WKH VWDQGLQJ SDUW7KLVORRSLVWKHEDVLVRIPRVWKLWFKHV

,,+,7&+(621$+22.

7KHTXLFNHVWZD\WRVHFXUHDURSH VHQGWRDKRRNLVWRXVH D%ODFNZDOO+LWFKZKLFKLVMXVWWKHEDVLFORRSPDGHURXQG LWV QHFN )LJ   7KH VWDQGLQJ SDUW MDPVGRZQRQWKHHQG DQGKROGVLWPRUHILUPO\WKDQWKHLOOXVWUDWLRQPLJKWVXJJHVW EXWLIWKHURSHLVJUHDV\D0LGVKLSPDQ V+LWFKLVEHWWHU 0DNHD%ODFNZDOODQGWKHQSXOOWKHXQGHUQHDWKSDUWIRUZDUG DQGSODFHLWRYHUWKHELOORIWKHKRRN)LJ 

$'RXEOH%ODFNZDOO+LWFKLVEHWWHUVWLOO)LJ 3ODFH? WKHELJKWRIWKHURSHDFURVVWKHVWURSWRZKLFKWKHKRRNLV DWWDFKHG&URVVWKHSDUWVEHKLQGWKHVWURSDQGEDFNWR FURVVDJDLQLQWKHKRRNLWVHOIZLWKWKHVWDQGLQJSDUWEHLQJ RQWRSRIWKHORRVHHQGDWERWKFURVVLQJV,QILJXUHVM

+,7&+(6:,7+$6,1*/((1'



DQGWKHHQGKDVEHHQFXUWDLOHGIRUHDVLHULOOXVWUDWLRQ )RUVDIHW\LWVKRXOGEHORQJHUWKDQLVVKRZQ

,,,67233(5.1276

6WRSSHU NQRWV DUH SXWRQWRDURSHWRVWRSWKHHQGIURP XQUDYHOOLQJWRSUHYHQWLWXQUHHYLQJWKURXJKDEORFNRUWR SURYLGH D KDQGJULS 7KH VLPSOHVW LV WKH2YHUKDQG.QRW RU 7KXPE.QRW  0DNHWKHEDVLFORRSSDVVWKHHQGXSWKURXJK WKHELJKWDQGKDXOWDXW)LJ 

7DNLQJWKHORRVHHQGURXQGWKHVWDQGLQJSDUWILUVWDQG SDVVLQJLWGRZQWKURXJKWKHELJKWPDNHVD)LJXUHRI(LJKW .QRW ZKLFKLVHDVLHUWRXQGRWKDQDQ2YHUKDQGDIWHUEHLQJ VXEMHFWHGWRVWUDLQ)LJ  7KH EXONLQHVV RI DQ 2YHUKDQG .QRW FDQ EH LQFUHDVHG E\ SDVVLQJWKHHQGWKURXJKWKHELJKWDQXPEHURIWLPHVEHIRUH WLJKWHQLQJRUE\PDNLQJLWZLWKWKHHQGGRXEOHGRYHU

,96(&85,1*$7$5,*+7$1*/(

:KHQ D URSH LV PDGH IDVW IRU VRPH SXUSRVH WKH GLUHFWLRQ IURP ZKLFK WKH VWUDLQ ZLOO FRPH LV PRVW FRPPRQO\ DW ULJKW DQJOHV WR WKH SRLQW RI DWWDFKPHQW ZKHWKHU WKDW EH DQRWKHU URSH D ZLUH SRVW KRRN EROODUG URFN LFH D[H HWF 7KHVLPSOHVW ULJKWDQJOH KLWFKLVWRWDNHWKHURSHURXQG WKHVHFXULQJSRLQWDQGPDNHD+DOI+LWFKRQLWVRZQVWDQG



.1276$1'63/,&(6

LQJSDUW)LJXUHVKRZVWKDWWKLVLVQRWKLQJPRUHWKDQ DQ2YHUKDQG.QRWPDGHURXQGVRPHWKLQJ 2QH+DOI+LWFKZLOOSUREDEO\QRWKROGEXW7ZR+DOI +LWFKHV ZLWK RQH EDFNLQJ WKH RWKHU XVXDOO\ ZLOO )LJ   +RZHYHU WKH VWDQGDUG ULJKWDQJOH  KLWFK LV WR WDNH D IXOO 5RXQG7XUQDQG7ZR+DOI+LWFKHV DVVKRZQLQILJXUH ZKLFK PLJKW KDYH WKH HQG VWRSSHG EDFN WR WKH VWDQGLQJ SDUWIRUDGGHGVHFXULW\DOWKRXJKWKLVLVQRWHVVHQWLDO

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

+,7&+(6:,7+$6,1*/((1'



$&ORYH+LWFK LV UHDOO\ WZR +DOI +LWFKHV LQ RSSRVLWH GLUHFWLRQV DORQJVLGH HDFK RWKHU ,W LV HDV\ WR PDNH DQG ORRVHQDIWHUVWUDLQDQGSDUWLFXODUO\XVHIXOZKHUHWKHORRVH

HQGKDVWREHNHSWIUHHWRSDVVRQWRVRPHRWKHUSXUSRVH 7DNHRQHURXQGWXUQRQRQHVLGHRIWKHVWDQGLQJSDUW  0DNH D VHFRQG URXQG WXUQ RQ WKH RWKHU VLGH7XFN WKHORRVHHQGWKURXJKWKLVVHFRQGWXUQDQGKDXOWDXW)LJ   :KHUH WKH VHFXULQJ SRVLWLRQ KDV DQ RSHQ HQG D &ORYH +LWFKFDQEHPDGHYHU\TXLFNO\HLWKHUDWWKHHQGRULQWKH PLGGOH RI D URSH E\ VOLSSLQJ RQ WZR ORRSV DV VKRZQ LQ ILJXUH



.1276$1'6 3 / , & ( 6

7KH6WXQVDLO+DO\DUG%HQG LVDYDULDWLRQRIWKH&ORYH +LWFKLQZKLFKWKHHQGLQVWHDGRIEHLQJSDVVHGWKURXJK WKH VHFRQG URXQG WXUQ LV WDNHQ RXWVLGH LW DQG SDVVHG XQGHU WKHILUVWURXQGWXUQ $QRWKHUYDULDWLRQLVWKH2VVHO+LWFK )LJ 7DNH RQHURXQGWXUQWRWKHOHIWRIWKHVWDQGLQJSDUW7DNHD VHFRQG WR LWV ULJKW EXW LQ WKH RSSRVLWH GLUHFWLRQ3DVV WKHHQGRXWVLGHWKHVHFRQGWXUQDQGWKURXJKWKHILUVWRQH

7KLVKLWFKWDNHVLWVQDPHIURPWKHRVVHOVZKLFKDUHWKH VKRUWOHQJWKVRIURSHZLWKZKLFKILVKHUPHQMRLQWKHEDFNLQJ RIWKHLUQHWVWRWKHKHDGURSH2QWKHEDFNLQJWKH\XVHDQ 2VVHO.QRW DYHU\UHOLDEOHKLWFK3ODFH\RXUOHIWWKXPE RQ WKH URSH DQG WDNH D URXQG WXUQ RYHU LW DQG WKH URSH FRPLQJXSWRWKHOHIWRIWKHVWDQGLQJSDUW7DNHDVHFRQG WXUQ DOVR FRPLQJXSWRWKHOHIWEXWPLVVLQJ\RXUWKXPE 7DNHWZRPRUHWXUQVERWKFRPLQJXSWRWKHULJKWRIWKH VWDQGLQJ SDUW )LQLVK E\ SDVVLQJ WKH HQG WKURXJK WKH VPDOOELJKWOHIWE\\RXUWKXPEDQGKDXOWDXW)LJ  9 3$5$//(/ +,7&+(6

6RPHWLPHVDURSHKDVWREHPDGHIDVWWRDQREMHFWWKDWOLHV URXJKO\SDUDOOHOWRWKHGLUHFWLRQRIVWUDLQHJLQVXVSHQGLQJ

+,7&+(6:,7+$6,1*/( (1'



VRPHWKLQJIURPDYHUWLFDOSROHRUWKHVKURXGVRID\DFKW 7KHEHVWJHQHUDOSXUSRVHKLWFKKHUHLVD5ROOLQJ+LWFK)LJ  0DNHWKLVOLNHD&ORYH+LWFKEXWWDNHWZRURXQGWXUQV

RQWKDWVLGHRIWKHVWDQGLQJSDUWIURPZKLFKWKHVWUDLQZLOO FRPHEHIRUHFURVVLQJWKHHQGRYHUWRPDNHWKHILQDOMDPPLQJ KDOI KLWFK $OZD\V SXW D 5ROOLQJ +LWFK RQ D URSHDJDLQVW WKHOD\ $6WRSSHU+LWFK LVDYDULDWLRQRIWKH5ROOLQJ+LWFKXVHIXO IRUVHFXULQJWKHWDLORIDKDQG\ELOO\WRDURSHDVVKRZQLQ ILJXUHRULQSXWWLQJDWHPSRUDU\VWRSSHURQDURSHLQ RUGHUWRWDNHWKHVWUDLQRIILWVORRVHHQGZKLOVWWKLVLVEHLQJ

PRYHG WR D QHZ VHFXULQJ SRVLWLRQ RU WDNHQ WR D ZLQFK 6WDUW OLNH D 5ROOLQJ +LWFK EXW LQVWHDG RI SXWWLQJ RQ WKH ILQDO KDOI KLWFK GRJ WKHORRVHHQGURXQGWKHURSHZLWKWKH OD\DQGVWRSLW



.1276$1'6 3 / , & ( 6

$7LPEHU+LWFK XVHGIRUVHFXULQJDSODQNRUVSDUWKDW KDVWREHKRLVWHGRUWRZHGLVD+DOI+LWFKWDNHQZLWKD UDWKHU ORQJ ORRVH HQG ZKLFK LV WKHQ GRJJHG EDFN URXQG LWVHOIZLWKWKHOD\)LJ +DXORQWKHVWDQGLQJSDUWWR

WLJKWHQWKHKLWFK7RNHHSWKHHQGRIWKHWLPEHUSRLQWLQJ LQRQHGLUHFWLRQVOLSRQDQRWKHU+DOI+LWFKDVVKRZQLQ ILJXUH 9,/2236,1$523(

$%RZOLQH PDNHVDORRSODUJHRUVPDOOLQWKHHQGRID URSHZKLFKKDVDWKRXVDQGDQGRQHXVHV3ODFHWKHORRVH HQG IURP ULJKW WR OHIW DFURVV WKH VWDQGLQJ SDUW OHDYLQJ D ORRS RI WKH UHTXLUHG VL]H *ULS WKH HQG DQG VWDQGLQJ SDUW WRJHWKHU ZLWK WKH ULJKW KDQG²WLSV RI WKH ILQJHUV DUH EHVW²DQGWZLVWGRZQZDUGVWRWKHOHIWLHFORFNZLVHIRU KDOIDWXUQ7KLVZLOOEULQJWKHHQGSRNLQJXSWKURXJKD VPDOOORRS)LJD 
+,7&+(6:,7+$6,1*/((1'



ZHLJKW ZRXOG WLJKWHQ WKH URSH XQEHDUDEO\ DURXQG KLP  3DVVWKHHQGULJKWURXQGWKHVWDQGLQJSDUWDQGOD\LWDFURVV LWVRZQSDUWDVVKRZQLQILJXUH&RQWLQXHDVIRUD VLPSOHERZOLQH

7R ORZHU RUKRLVWDSHUVRQWZRORRSVDUHQHHGHGRQHWR JR XQGHU KLV DUPSLWV DQG WKH RWKHU XQGHU KLVWKLJKV2QH ZD\WRSURYLGHWKHVHLVWRPDNHD)UHQFK%RZOLQH)LJ 



.1276$1'63 / , & ( 6

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

7KH0DQ+DUQHVV+LWFKLVDQRWKHUZD\RIPDNLQJDORRS LQDURSHZLWKRXWXVLQJWKHHQGV0DNHDORRSRIWKH

+,7&+(6:,7+$6,1*/((1'



UHTXLUHGVL]HDVLQILJXUH3DVVWKHELJKW $ XSEHWZHHQ

% DQG &%ULQJ ' DQG … WRJHWKHUDQGKDXOWDXWZLWK

$ 

$6KHHSVKDQN LVXVHGWRVKRUWHQDURSHWHPSRUDULO\RUWR

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



.1276$1'63 /,&(6

+LWFKHVZKLFKVKRXOGEHLQOLQHKDXOLQJHDFKWDXWDVLWLV PDGH)LQLVKZLWKD&ORYH+LWFKLQVWHDGRID+DOI+LWFK 6HHDOVR)LJ

+,7&+(6:,7+$6,1*/((1'



$0DUOLQH6SLNH+LWFK )LJ LVXVHGWRREWDLQDEHWWHU SXUFKDVHRUJULSRQDVPDOOFRUG0DNHDORRSRYHUWKH VWDQGLQJ SDUW 3DVV D VSLNH EROW RU VFUHZGULYHU HWF DFURVV WKH ORRS EXW XQGHU WKH VWDQGLQJ SDUW3XOO RQERWK HQGVRIWKHVSLNHWRWLJKWHQ 0DQ\ KLWFKHV FDQ EHIDVKLRQHGIRUTXLFNUHOHDVHE\WDNLQJ WKH ODVW WXUQ ZLWK D ELJKW RI URSH LQVWHDG RI WKH HQG $ &ORYH+LWFK5ROOLQJ+LWFKHWFFDQEHVRPDGH+RZ



.1276$1'6 3 / , & ( 6

HYHU DV PDQ\RIXVNQRZIURPH[SHULHQFHZLWKVKRHODFHV WKHUH LV VRPH GDQJHU WKDWDERZHGKLWFKPD\VOLSEXWRQH WKDW ZLOO QRW²WKHUH DUH RWKHUV² LV D'UDZ+LWFK 7DNH RQHELJKWRIURSHXSEHKLQGWKHEDUDQGDQRWKHULQIURQW RI LW )LJ D 3DVVWKHIURQWELJKWWKURXJKWKHEDFN RQH DQG SXOO WDXW ZLWK WKH ORRVH HQG ZKLFK OHDYHV WKH IURQWELJKWVWLOOVWDQGLQJ)LJ 0DNHDWKLUGELJKW ZLWK WKH ORRVH HQG DQG SDVV LW WKURXJK ELJKW ,, 3XOO WDXWZLWKWKHVWDQGLQJSDUW)LJF 

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

+,7&+(6: , 7 + $6 , 1 * / ( (1'



XQGHU VWUDLQ LVWKH5RDGPHQGHU V.QRW ZKLFKLVYHU\VXLW DEOHIRUVHFXULQJDURSHDORQJDOLQHRISRVWVEXWFDQDOVR EHXVHGWRPDNHWKHHQGIDVWWRMXVWRQHHJLQVHFXULQJD PRRULQJ OLQH WR DEROODUG7DNHDWXUQURXQGWKHSRVW ZLWK D ORQJ ELJKW RI URSHSDVVLQJEHORZERWKWKHVWDQGLQJ SDUWDQGWKHORRVHHQG)LJD 3DVVWKHELJKWRYHUWKH WRSRIWKHSRVWDQGKDXOWDXW)LJ 

0RXVLQJDKRRN LV DVHQVLEOHSUHFDXWLRQWRSUHYHQWWKH ORDG IURP MXPSLQJ RXW DQG VKRXOG EH XVHG ZKHUHYHU SRV VLEOH6LPSO\PLGGOHDOHQJWKRIWZLQHRQWKHVKDQNRIWKH KRRNDQGWDNHWKHHQGVRSSRVLWHZD\VURXQGVKDQNDQGELOO DQXPEHURIWLPHVDQGILQLVKE\UHHINQRWWLQJWKHP7KLV FORVHVWKHMDZRIWKHKRRN

&+$37(57+5((

.QRWVMRLQLQJWZRURSHV

7+( NQRW PRVW FRPPRQO\ XVHG IRU MRLQLQJ WZR URSHV RI

VLPLODUVL]HLVWKH5HHI.QRW ZKLFKHYHU\ERG\NQRZVKRZ WR PDNH²RU GR WKH\ " 7KH URSHV²RU IRU WKDW PDWWHU WKH VKRH ODFHV IRU ZH VKRXOG UHHI NQRW WKHVH HYHU\ GD\²DUH EURXJKW WRJHWKHU DQG KDOI NQRWWHG LH WZLVWHG RQH RYHU WKH RWKHU 7KHQ WKH HQGV DUH EURXJKW EDFN DQG DJDLQ KDOI NQRWWHGDQGWKHUHVXOWXQOHVV\RXKDYHEHHQFDUHIXOLVDQ LQVHFXUH*UDQQ\.QRW 7RPDNHD5HHI.QRWFRUUHFWO\LILQWKHILUVWKDOINQRW \RX WRRN WKH ULJKWKDQG HQG RYHU WKH >OHIWKDQG FRPLQJ EDFN \RX VKRXOG WDNH WKH OHIWKDQG RYHU WKH ULJKWKDQG DQG YLFHYHUVD5HPHPEHU 5LJKWRYHUOHIWOHIWRYHUULJKW RU

/HIWRYHUULJKWULJKWRYHUOHIW :KHQFRPSOHWHGWKHWZR SDUWV RI HDFK URSH VKRXOG SDVV WKURXJK WKH ELJKW RI WKH RWKHUURSHVLGHE\VLGH,IRQHSDUWLVDERYHDQGWKHRWKHU EHORZWKHELJKW\RXUNQRWLVD*UDQQ\ 7RIUHHD5HHI.QRWKROGERWKSDUWVRIRQHURSHLQRQH KDQG DQG WKRVH RI WKH RWKHU LQ WKH RWKHU KDQG DQG SXVK WRJHWKHU $ 5HHI .QRW LV YHU\ VHFXUH XQGHU VWUDLQ EXW EHFDXVHLWIUHHVVRHDVLO\WKHUHLVDGDQJHUWKDWLWPD\ORRVHQ RILWVHOILIWKHURSHVDUHUHOD[HG :KHUH WKH URSHV PD\ QRW EH VXEMHFWHG WR DFRQWLQXRXV SXOO D VDIHU KLWFK LV WKH6KHHW%HQG ZKLFKZLOODOVRMRLQ WZRURSHVRIXQHTXDOVL]HRURQHURSHWRWKHH\HLQWKHHQG RIDQRWKHURUWRWKHFULQJOHLQWKHFRUQHURIDVDLO7RPDNH LW)RUPDELJKWLQWKHODUJHUURSHRUXVHWKHH\HLIWKHUH LVRQH 3DVVWKHVPDOOHUURSHXSWKURXJKWKLVELJKW :LWKWKHVPDOOHUURSH VHQGWDNHDFRPSOHWHWXUQURXQG 

.1276-2,1,1*7:2523(6



ERWKSDUWVRIWKHODUJHUURSHDQGSDVVLWXQGHULWVRZQSDUW )LJ   )RU H[WUD VHFXULW\ HVSHFLDOO\ LI WKH URSHV DUH ZHW RU LI RQH LV FRQVLGHUDEO\ ODUJHU WKDQ WKH RWKHU UHSHDW 6WDJH WRPDNHD'RXEOH6KHHW%HQG

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



.1276$1'63 / , & ( 6

NQRWDQGVKRXOGEHVWRSSHGWRWKHVWDQGLQJSDUWVLIWKHURSHV DUHODUJH 2QH DGYDQWDJH RI WKH &DUULFN %HQG LV WKDW LW IRUPV D IODW NQRW WKDW GRHV QRW LPSHGH WKH SURJUHVV RIWKHURSHV URXQGDFDSVWDQRUZLQFK,IWKHURSHVDUHQRWWREHVROHG KRZHYHU7ZR +DOI+LWFKHVZLWKWKHHQGVVWRSSHGEDFN DV VKRZQLQILJXUHDUHTXLFNHUWRPDNHRU7ZR%RZOLQHV PD\EHXVHG

:KHUHWKHRWKHUHQGVRIWKHWZRURSHVDUHDOUHDG\VHFXUHG WKHHQGVWREHMRLQHGWRHDFKRWKHUPD\QRWRYHUODSHQRXJK WRSURYLGHVODFNIRUPDNLQJORRSVHWF,QWKLVFDVHWKH6KURXG .QRWGHVFULEHGLQWKHQH[WFKDSWHUPD\SURYHXVHIXO 7KHTXLFNHVWZD\RIMRLQLQJWZRWKLQOLQHVLVWRPDNHDQ 2YHUKDQG .QRW ZLWK ERWK HQGV WRJHWKHU VLGH E\ VLGH EXW D'RXEOH2YHUKDQG.QRW LVVRXQGHU0DNHDQ2YHUKDQG .QRWRQWKHHQGRIRQHOLQH3DVVWKHRWKHUOLQHWKURXJK WKLVNQRWDQGPDNHDQ2YHUKDQG.QRWZLWKLWURXQGWKH VWDQGLQJSDUWRIWKHILUVWOLQH)LJ 

.1276- 2 , 1 , 1 * 7:2523(6



%RWK WKHVH NQRWV PD\ SURYH GLIILFXOW WR XQGR EXW ORRVHO\ WZLVWHGOLQHVVXFKDVVSXQ\DUQRUPDUOLQHPD\EHMRLQHGE\ D6SXQ\DUQ.QRW ZKLFKZLOOIUHHPRUHHDVLO\6SOLWWKH OLQHV LQWR WZR DQG FUXWFK WKHP DV LQ ILJXUH   7DNH VWUDQG,RYHUDQGULJKWURXQGWKHVWDQGLQJSDUWV7DNH VWUDQG ,,, XQGHU DQG ULJKW URXQG WKH VWDQGLQJ SDUWV +DOINQRW,DQG,,,ZKHUHWKH\PHHWRQWRSRIWKHFUXWFK

.QRWVZLWKDURSH VRZQ VWUDQGV &+$37(5)285

PRVW NQRWV RI WKLV FKDUDFWHU PXVW EH FODVVHG DV IDQF\  DOWKRXJK ZKHQ WKH ULJJLQJ DQG HYHQ WKH PDVVLYH DQFKRUFDEOHVRIVKLSVZHUHDOORIKHPSHQURSHPDQ\KDG DSUDFWLFDOSXUSRVH6RPHVWLOOKDYHDQGWKHVHDUHGHVFULEHG EHORZ WRJHWKHU ZLWK D VHOHFWLRQ RIWKH IDQF\ YDULHW\,W FDQ RQO\ EH D VHOHFWLRQ IRU D FRPSOHWH GHVFULSWLRQ RI DOO NQRZQ H[DPSOHV RI IDQF\ NQRWV  ZRXOG RFFXS\ D ZKROH YROXPHIDUPRUHVSDFHWKDQFDQEHVSDUHGLQDERRNWKH SULPHDLPRIZKLFKLVWREHXWLOLWDULDQ+RZHYHULI\RX EHFRPH HQWKXVLDVWLF DERXW IDQF\ NQRWV ²GHFRUDWLYH ZRUN ZHOO GRQH LQ FOHDQ QHZ URSH LV H[WUHPHO\ DWWUDFWLYH²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



.1276:,7+$5 2 3( 6 2:1675$1'6



,QD:DOO.QRWKRZHYHUWKHVWUDQGVFRPHRXWDWWKHWRS RI WKH NQRW  8QOD\ WKH URSH  3DVV VWUDQG , RXWVLGH VWUDQG ,, EXW LQVLGH VWUDQG ,,, )LJ D 3DVV ,, RXWVLGH ,,,DQGWKHHQGRI,)LJ 'LS,,,RXWVLGHWKHELJKW RI,,DQGEULQJLWXSWKURXJKWKHELJKWRI,)LJF  :RUNDOOWDXWFXWRIIWKHHQGVDQGZKLS)LJOG 



.1276$1'6 3 / , & ( 6

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

$6KURXG.QRWZKLFKDVSUHYLRXVO\PHQWLRQHGMRLQVWZR URSHVLVVRFDOOHGEHFDXVHLWZDVXVHGWRUHSDLUVKURXGVWKDW

.1276:,7+$523( 62:1675$1'6



KDGEHHQVKRWDZD\LQDFWLRQ,WPDNHVDMRLQDVVHFXUHDQG QHDWDVDVSOLFHEXWUHTXLUHVOHVVURSHIRULWVPDQXIDFWXUH DQGLVPRUHTXLFNO\PDGH8QOD\ERWKURSHVDQGFUXWFK WKH VWUDQGV LH VR WKDW HDFK VWUDQG SDVVHV EHWZHHQ WZR VWUDQGVRIWKHRWKHUURSHEXWLQWKHRSSRVLWHGLUHFWLRQWR WKHP  :LWK WKH VWUDQGV RI URSH $  IRUP D :DOO .QRW URXQG URSH %  WR WKH OHIW RQ D ULJKWKDQGHG URSH DQG YLFHYHUVDRQDOHIWKDQGHG6LPLODUO\IRUPD:DOOZLWK

WKH VWUDQGV RI %  RQ $  7LJKWHQ XQWLO WKH NQRWV MDP DJDLQVW HDFK RWKHU )LJG   7R PDNH D QHDW ILQLVK PDUODQGVHUYHDVLQILJXUH 7RPDNHD6WRSSHU.QRW )RUPD:DOO.QRWEXWGRQRW ZRUN WDXW  3DVV HDFK HQG IURPOHIWWRULJKWXSWKURXJK WKH ORRS QH[W WR LW DQG XQGHU WKH HQG DOUHDG\ WKHUH :RUNWDXW/D\XSWKHVWUDQGVKDUGZKLSDQGFXWRIIWR WKHZKLSSLQJ)LJ  7KH 0DWWKHZ:DONHU.QRWVDUHDOVRYDULDWLRQVRQWKH :DOO7RPDNHD6LQJOH0DWWKHZ:DONHU 6WDUWOLNHD :DOOEXWSDVVVWUDQG,XQGHUERWK,,DQG,,,3DVV,,



.1276$1'6 3 / , & ( 6

XQGHU,,, DQG,DQGFRPHXSWKURXJKWKHELJKWRI,3DVV ,,, URXQGWKHHQGRI,WKURXJKLWVELJKWDQGWKURXJKWKH ELJKWRI,,)LJ 7KLVNQRWGLIIHUVIURPWKH:DOOLQWKDW HDFKVWUDQGSDVVHVWKURXJKWKHELJKWVRIERWKWKHRWKHUV ,QD'RXEOH0DWWKHZ:DONHU ZKLFK FRPSOHWHGORRNV OLNHILJXUHDDQGLVDNQRWWKDWZLOOQRWVOLSRUFDSVL]H HDFK VWUDQG SDVVHV WKURXJKWKUHHELJKWV LH LQFOXGLQJ LWV RZQDVVKRZQLQILJXUHE

$'LDPRQG.QRW LVRIWHQPDGHLQWKHPLGGOHRIDURSH 7RIRUPRQH8QOD\WKHURSHWRWKHSRLQWZKHUH\RXZLVK WRPDNHWKHNQRWWDNLQJFDUHWRSUHVHUYHWKHOD\DVPXFK DVSRVVLEOHDV\RXZLOOKDYHWRUHOD\WKHURSHODWHU/D\ HDFK VWUDQG DORQJVLGH WKH VWDQGLQJ SDUW VR WKDW \RX OHDYH WKUHH ELJKWV VWDQGLQJ DERYH WKH SRLQW ZKHUH WKH\ IRUN 7DNHVWUDQG,RXWVLGHVWUDQG,,DQGXSWKURXJKWKHELJKWRI VWUDQG ,,, 7DNH ,, RXWVLGH ,,, DQG XS WKURXJK WKH ELJKW RI,7DNH,,,RXWVLGHWKHELJKWRI,DQGXSWKURXJKWKH

.1276:,7+$5 2 3( 6 2:1675$1'6



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



.1276$1'6 3 / , & ( 6

$7XUN V+HDGDOVRIRUPVDGHFRUDWLYHNQRWRQWKHQRRVH RIDNQLIHRUZKLVWOHODQ\DUG 8QOD\WKHHQGRIWKHODQ\DUG DQGZLWKWKHVWUDQGVIRUPD:DOO.QRWURXQGWKHVWDQGLQJ SDUWRIWKHODQ\DUGLWVHOI7KHQIRUPD&URZQ.QRWDOVR

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

.1276:,7+$5 2 3 ( 6 2:1675$1'6

RUWZLFHDQGFXWRII0RUHWKDQWZRSLHFHVRIOLQHFDQEH XVHGLIGHVLUHG



$/RQJ)RRWURSH.QRW )LJ 6WDUWDVIRUD)RRWURSH .QRWEXWZLWKORQJHUOLQHV0DNHD)RRWURSH.QRWEXW GRQRWFXWRIIWKHHQGV7XUQWKHURSHHQGWRHQGDQG PDNH DQRWKHU)RRWURSH .QRW )ROORZ URXQG WZLFH DQG FXWRII

&+$37(5) , 9 (

6SOLFLQJKHPSHQURSHV

,*(1(5$/5(0$5.6 63/,&,1* LV D PHWKRG RI MRLQLQJ RQH URSH WR DQRWKHU RU WZRSDUWVRIWKHVDPHURSHE\WXFNLQJWKHVWUDQGVRIRQH XQGHUDQGRYHUWKRVHRIWKHRWKHU:KHQVWUDLQFRPHVRQWR WKHVSOLFHWKHVWUDQGVELWHLQZDUGVDQGKROGHDFKRWKHULQ SRVLWLRQEXWLWLVVWLOOVDIHUWRDVVXPHWKDWDVSOLFHUHGXFHV WKHVWUHQJWKRIDURSHE\DERXWRQHHLJKWK $OOVSOLFHVVWDUWE\XQOD\LQJWKHURSHV IRUDFHUWDLQ GLVWDQFHDQGWREHJLQZLWKLWPD\EHIRXQGWKDWDWHPSRUDU\ ZKLSSLQJDWWKHIRUNLHDWWKHSRLQWZKHUHWKHXQOD\LQJ HQGVPD\PDNHZRUNHDVLHUE\SUHYHQWLQJWKHVWUDQGVIURP XQWZLVWLQJIDUWKHU:LWKSUDFWLFHKRZHYHUWKLVZKLSSLQJ PD\ QR ORQJHU EHQHFHVVDU\HVSHFLDOO\RQVPDOOHUURSHV :KLSSLQJWKHHQGRIHDFKLQGLYLGXDOVWUDQGZLOODOVRKHOS LQSURGXFLQJDQHDWHUILQLVKWRWKHVSOLFH $+WXFNVVKRXOGEH PDGHZLWKWKHOD\RIWKHURSHLQWR ZKLFKWKH\DUHEHLQJPDGHXQOHVVRWKHUZLVHGLUHFWHGDQG URXJKO\DWULJKWDQJOHVWRLWVVWUDQGV7KH\VKRXOGEHSXOOHG WLJKWDORQJWKHOD\DQGFDQEHPDGHWROLHVQXJO\ZKLFKLV HVVHQWLDOIRUVWUHQJWKE\VWUHWFKLQJDQGWZLVWLQJWKHVSOLFH E\UROOLQJLWRQDWDEOHZLWKWKHSDOPRIWKHKDQGRURQWKH IORRU ZLWK WKH IRRW DQG E\ KDPPHULQJ WKH VWUDQGV KRPH OLJKWO\ZLWKDZRRGHQPDOOHW $FRPSOHWHGVSOLFHZLOOORRNQHDWHUDQGJDLQLQVWUHQJWK LILWLVZRUPHGSDUFHOOHGDQG VHUYHG ,,(<(63/,&(6 $Q(\HVRFDOOHGIURPLWVVKDSHLVDORRSXVXDOO\DWWKH 

63/,&,1*+(03(1523(6



HQGRIDURSHEXWVRPHWLPHVLQWKHPLGGOH,WPD\EHKDUG LIPDGHDURXQGDPHWDOVWLIIHQHUFDOOHGDWKLPEOHRUVRIW ZLWKRXW D WKLPEOH 7KH PRVW FRPPRQ W\SH RI WKLPEOH LV NQRZQIURPLWVVKDSHDVD+HDUW7KLPEOH )LJ $ /DQ\DUG7KLPEOH LVYHU\VLPLODUEXWKDVDIODWWHQHGWRSLQ RUGHUWRSURYLGHDODUJHURSHQLQJIRUWXUQVRIURSH)LJ  $6DLO7KLPEOH )LJ LVFLUFXODUVRWKDWLWZLOOILW VQXJO\LQWRWKHFDQYDV

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



.1276$1'63 / , & ( 6

7RILQLVKRIIWKHVSOLFHHLWKHUD GLYLGHWKH\DUQVRIHDFK VWUDQG LQWR WZR DQG ZKLS WRJHWKHU HDFK SDLU RI DGMDFHQW KDOYHV IURP QHLJKERXULQJ VWUDQGV WKUHH SDLUV DOO WROG  RU E VFUDSHRUFXWRIIOHQJWKZLVHKDOIRIHDFKVWUDQGDQGWXFN DJDLQ DQG WKHQ KDOYH DQG WXFN RQFH PRUH 7KHVH KDOI WXFNV WDSHUWKHVSOLFHWRDQHDWILQLVKZKLFKPD\EHVHUYHG LIGHVLUHG

7RPDNHDVLPSOH 6RIW(\H 3URFHHGDVDERYHEXWRPLW WKHWKLPEOH 7RPDNHDQ(\H6SOLFHZLWK)RXU6WUDQGHG5RSH 3URFHHG DV DERYH IRU WKUHHVWUDQGHG URSH EXW LQ VWDJH  WKH OHIW KDQGVWUDQGLVWXFNHGXQGHUWKHVDPHVWUDQGDVWKHPLGGOH RQHRUUDWKHUWKHOHIWKDQGRQHRIWKHPLGGOHSDLU EXWFRPHV RXWIURPXQGHUWKHVWUDQGEH\RQGLWLHLWSDVVHVXQGHUWZR VWUDQGV 7KH WXFNLQJ RI IRXU VHSDUDWH VWUDQGVLVRIFRXUVH QHFHVVDU\WRFRPSOHWHWKHILUVWVHW 7RPDNHDQ(\H6SOLFH:RUPHGDQG&ROODUHG 7KLVLVD VLPSOHH\H6SOLFHZLWKDIDQF\ILQLVK&DUU\RXWVWDJHVWR RIDVLPSOH(\H6SOLFHDQGWKHQ² 6HSDUDWHIRXU\DUQVIURP HDFKVWUDQGPDNLQJWZHOYHDOOWROGLQDWKUHHVWUDQGHGURSH DQGVL[WHHQLQDIRXUVWUDQGHG .HHSLQJWKHVHRXWRIWKH

6 3 / , & , 1 * +(03(1523(6



ZD\ZLWKWKHUHPDLQGHURIWKHVWUDQGVFDUU\RXWVWDJH SOXV RQH H[WUD KDOIWXFN  /D\ XS WKH VHSDUDWHG \DUQV LQWR WZR\DUQ QHWWOHV :LWK RQH QHWWOH IURP HDFK \DUQ ZRUPWRWKHHQGRIWKHVSOLFHDQGILQLVKE\WXFNLQJHDFK QHWWOHXQGHUDGLIIHUHQWVWUDQG)LJD :LWKWKHWZR VHWVRIQHWWOHVWKRVHOHIWDWWKHWRSDQGWKRVHSURWUXGLQJ IURP XQGHU D VWUDQG DW WKH ERWWRP IDVKLRQ )RRWURSH .QRWV )LJE 

7RPDNHD6DLOPDNHU V(\H6SOLFH 3URFHHGDVIRUD VLPSOH(\H6SOLFHEXWPDNHWKHWXFNVIURPOHIWWRULJKWLH DJDLQVW WKH OD\ 7KLV SURGXFHV D VSOLFH QHDWHU LQDSSHDUDQFH EXW ZLWK OHVV VWUHQJWK ZKLFK VKRXOG QRW WKHUHIRUH EH XVHG ZKHUHFRQVLGHUDEOHVWUDLQZLOOFRPHXSRQLW 7RPDNHD6LQJOH7XFN(\H6SOLFHDQG:DOO.QRW 3URFHHG DVIRUDVLPSOH(\H6SOLFHEXWLQVWHDGRISXWWLQJLQDVHFRQG



.1276$1'6 3 / , & ( 6

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

7RPDNHD)OHPLVK(\H 8QOD\VWUDQG,WRDGLVWDQFH HTXDO WR RQH DQG D KDOI WLPHVWKH FLUFXPIHUHQFH RI WKH GHVLUHGH\H:LWKVWUDQGV,,DQG,,,IRUPWKHH\HDVLQ ILJXUH/D\VWUDQG,EDFNLQWRWKHVSDFHIURPZKLFK

6 3 / , & , 1 * +(03(1523(6



LW FDPH EXW LQ WKH UHYHUVH GLUHFWLRQ XQWLO LW UHWXUQV WR WKH IRUN 8QOD\ VWUDQGV ,, DQG,,,DQGZLWKVWUDQG,VFUDSH WKHP WR WDSHU OD\ WKHP DORQJ WKH VWDQGLQJ SDUW DQG PDUO RUVHUYHWKHPGRZQWRLW7KLVPDNHVDQHDWHUORRNLQJEXW ZHDNHU MRE WKDQ DQ RUGLQDU\ H\H VSOLFH ,W LV KRZHYHU XVHIXO LQ WKH HQG RI D ODUJH URSH WR SURYLGH D PHDQV RI KDXOLQJLWDERXW :KHQPDNLQJWKLVH\HZLWKIRXUVWUDQGHGURSHFDUU\RXW VWDJHV  WR  7KHQ XQOD\ DQRWKHU VWUDQG EXW QRW RQH DGMDFHQWWRWKDWDOUHDG\XQODLGDQGGHDOZLWKLWDVIRUWKDW VWUDQG7KHQFRPSOHWHZLWKVWDJH 7R PDNH DQ $UWLILFLDO RU 6SLQGOH (\H 6SOLFLQJ EUDLGHG URSHV LV D GLIILFXOW WDVN EHFDXVH RI WKH WLJKWQHVV RI WKH EUDLGLQJ7RMRLQWZREUDLGHGURSHVLWLVILUVWQHFHVVDU\WR XQEUDLG WKHP IRU D VXIILFLHQW GLVWDQFH SXW RQ D ZKLSSLQJ DW WKLV SRLQW DQG WKHQ UHEUDLG WKHP DV GHVFULEHG XQGHU

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

7DNHDF\OLQGULFDOSLHFHRIZRRGRUPHWDO²WKHVSLQGOH²WKH GLDPHWHU EHLQJ VOLJKWO\ ODUJHU WKDQ WKDW RIWKHGHVLUHGH\H DQG RQ LW UDLVH WZR OXPSV ZLWK VSXQ\DUQ DERXW WKH GLD PHWHURIWKH URSHDSDUWDQGKDOIL WV GLDPHWHUKLJK)LJD 



.1276$1'6 3 / , & ( 6

/D\IRXUSLHFHVRIVHDPLQJWZLQHDORQJWKHVSLQGOHDQG VWRS WKHP LQ SODFH DV VKRZQ LQ ILJXUH  8QOD\ WKH URSHRSHQWKHVWUDQGVDQGVHSDUDWHHDFK\DUQ+LWFKWKH \DUQVLQSDLUVRQHIURPHLWKHUVLGHRYHUWKHVSLQGOHEHWZHHQ WKH OXPSV²ZKLFK SUHYHQW WKHP IURP VSUHDGLQJ RXW²XQWLO DOOKDYHEHHQXVHGYDU\LQJWKHSRVLWLRQVRIWKHKLWFKHVVR WKDW WKH\ GR QRW DOO FRPH WRJHWKHU ZKLFK ZRXOG UDLVH D EXPSRQWKHH\H)LJ /D\WKHHQGVRIWKH\DUQV

DORQJ WKH VWDQGLQJ SDUW DQG OLJKWO\ VWRS WKHP WR LW &XW WKH VWRSSHUV KROGLQJ WKH VHDPLQJWZLQHDQGEULQJLWVHQGV WRJHWKHUWRNQRWWKHPLQSDLUVWLJKWO\RYHUWKHKLWFKHG\DUQV  7DNH RII RQH VSXQ\DUQ OXPS DQG VOLGH WKH H\H RII WKH VSLQGOH 6WDUWLQJ DW WKH WRS VHUYH WKH H\H GRZQ WR WKH IRUN7DNHRIIWKHVWRSSHUVRQWKHHQGVRIWKH\DUQVDQG VFUDSHWKHODWWHUGRZQWRWDSHU6HUYHWKHPGRZQWRWKH VWDQGLQJSDUW1RWHVVHQWLDOEXWWRJLYHDEHWWHUILQLVK &RYHUWKHH\HZLWKFRFNVFRPELQJVHH&KDSWHU 

63/,&,1*+(03(1523(6

,,, -2,1,1*7ZR523(6



6KRUW6SOLFLQJ$6KRUW6SOLFHLVWKHHDVLHVWZD\RIVSOLFLQJ WZRURSHVWRJHWKHUEXWLWLVEXON\DQGQRWVXLWDEOHRQD URSHWKDWKDVWRSDVVWKURXJKDEORFNRUDQ\QDUURZRSHQLQJ 7R PDNH LW  8QOD\ ERWK URSHV WR D GLVWDQFHHTXDOWR WZLFH WKHLU FLUFXPIHUHQFH  &UXWFK WKH VWUDQGV WRJHWKHU VR WKDW HDFK OLHV EHWZHHQ WZR VWUDQGV RIWKHRSSRVLQJURSH )LJD 3XWDVWRSURXQGWKHIRUN7XFNHDFKVWUDQG RIURSH $ RYHUWKHVWUDQGRIURSH % LPPHGLDWHO\WRLWV OHIWORRNLQJWRZDUGVWKHHQGRIWKHVWUDQG DQGXQGHUWKH VWUDQGEH\RQGDVLQH\HVSOLFLQJ7XFNWKHVWUDQGVRI URSH $ DJDLQRYHUDQGXQGHU&XWRIIWKHVWRSRQWKH IRUNDQGWXFNWKHVWUDQGVRIURSH % WZLFHLQWRWKRVHRI URSH $ )LJXUHEWRPDNHWKHRSHUDWLRQHDVLHUWRIROORZ VKRZVRQO\RQHVHWRIWXFNVRQHDFKURSH 6WUHWFKWKH VSOLFHE\SXOOLQJDQGWZLVWLQJ(LWKHUD ZKLSWKHHQGV DQGFXWRIIRUE WDNHDIHZRIWKHXQGHUQHDWK\DUQVIURP HDFKVWUDQGWRILOOXSWKHOD\RIWKHURSHE\ZRUPLQJVFUDSH



.1276$1'63/,&(6

WKHUHPDLQGHURIWKHHQGVPDUOWKHPGRZQRQWRWKHURSH ZLWKWKLQWZLQHDQGVHUYHRYHUWKHVSOLFH 7ZRIRXUVWUDQGHGURSHVDUHVSOLFHGH[DFWO\DVWZRWKUHH VWUDQGHGEXWLIDWKUHHVWUDQGHGURSHKDVWREHVSOLFHGWR D IRXUVWUDQGHG  8QOD\ WKH WKUHHVWUDQGHG URSH IRU WZLFH WKH GLVWDQFH RI WKH IRXUVWUDQGHG VSOLW RQH RI LWV VWUDQGVLQWRWZRSDUWVDQGUHOD\LWDVDIRXUVWUDQGHGURSH IRUWKHGLVWDQFHQHHGHGWRWDNHWKHWXFNVRIWKHRWKHUURSH &UXWFKWKHVWUDQGVDQGSURFHHGDVDERYH

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

6 3 / , & , 1 * +(03(1523(6



IRUE EXWEHIRUHWXFNLQJWKHHQGVKDOYHHDFKRQHDQGWXFN HDFK KDOI URXQG D GLIIHUHQW VWUDQG WR WKDW HQFLUFOHG E\ LWV

WZLQ 7KLVJLYHVDYHU\VPRRWKILQLVK 7KHVH WKUHH PHWKRGV E\ QR PHDQV H[KDXVW WKH SRVVLEOH HQGLQJVWRD/RQJ6SOLFH,QGHHGLWXVHGWREHVDLGWKDW

HYHU\VKLSKDVKHURZQZD\RIPDNLQJD/RQJ6SOLFH DQG

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
IRXU  VWUDQGV )XUWKHU XQOD\ RQH RI WKH IRXU  VWUDQGV DQG OD\ LQ RQH RI WKH WKUHH  FKRRVLQJ \RXU VWUDQGV VR WKDWWKHWZRRIWKH IRXU VWUDQGVZKLFKDUHOHIWDUHWKHSDLU ZKLFKZHUHFUXWFKHGWRJHWKHU'LYLGHWKHUHPDLQLQJVWUDQG RIWKHWKUHHVWUDQGHGURSHLQWRWZRXQHTXDOSRUWLRQVDWKLUG DQG WZRWKLUGV  +DOI NQRW WKH RQHWKLUG SRUWLRQ ZLWK RQH RI WKH UHPDLQLQJ IRXU  VWUDQGV )XUWKHU XQOD\ WKH ODVW

IRXU  VWUDQG DQG OD\ XS WKH WZRWKLUGV VWUDQG LQ LWV SODFH +DOINQRWDOOHQGVDQGILQLVKDVIRUDVLPSOH/RQJ6SOLFH ,I\RXDUHLQGHVSHUDWHQHHGRIDVRXQG/RQJ6SOLFHLQ FDEOHODLGURSHLWPLJKWEHDVZHOOWRHQWUXVWWKLVWDVNWRDQ H[SHUW2QWKHRWKHUKDQGLI\RXZDQWWRDVVHVV\RXURZQ



.1276$1'63/,&(6

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

LQWR HQG $  DW SRVLWLRQ ,, WXFNLQJ DV IRU DQ (\H 6SOLFH DQG PDNLQJ VXUH WKDW \RX KDYH SXW \RXU VSOLFHV ZKHUH WKH\ZLOOOHDYHDORRSRIURSHEHWZHHQWKHPDQGQRWPHUHO\ WZRSDUWVRIURSHO\LQJVQXJO\VLGHE\VLGH)LJXUHVKRZV

WKHULJKWKDQGVSOLFHPDGHDQGVHUYHGDQGWKHOHIWKDQGMXVW FRPPHQFHG ,927+(563/,&(6

&KDLQ6SOLFH ,IDOHQJWKRIURSHKDVWREHVHFXUHGWRWKH HQGRIDFKDLQLWLVYHU\OLNHO\WKDWWKHHQGOLQNZLOOSURYH WRRVPDOOWRDOORZWKHZKROHURSHWREHSDVVHGWKURXJKDQG

6 3 / , & , 1 * +(03(1523(6



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



.1276$1'63/,&(6

RIWKHVL]HUHTXLUHG'RJWKLVZRUNLQJHQGEDFNURXQG WKH ORRS NHHSLQJ WKH WXUQV LQ WKH QDWXUDO OD\  RI WKH VWUDQG  3DVV WKH ZRUNLQJ HQG WKURXJK WKH PDLQ URSH ZKHUHWKHILUVWWXFNRIWKHVWDQGLQJHQGZDVPDGH'RJ WKH ZRUNLQJ HQGEDFNWRWKHRWKHUHQGRIWKHEHFNHWILOOLQJ XSDOOWKHVSDFHVOHIWLQWKHOD\VRWKDWLQHIIHFW\RXKDYH

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

63/,&,1*+(03(1523(6

DQGPDUOSDUFHODQGVHUYHRYHUWKHZKROHVSOLFHZKHQLWLV FRPSOHWH



,I WKH KHPSHQ URSH LV IRXUVWUDQGHG SURFHHG DV GHV FULEHG DERYH IRU VSOLFLQJ WKUHH DQG IRXUVWUDQGHG URSHV WUHDWLQJWKHZLUHURSHZKLFKKDVVL[VWUDQGVDVEHLQJWKH WKUHHVWUDQGHG URSH DQG ZRUN LWV VWUDQGV IRXU LQ SDLUV DQG WZRVLQJO\

&+$37(56,;

6OLQJLQJODVKLQJDQGVHL]LQJ ,6/,1*,1*

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

6/,1*,1*/$6+,1*$1'6 ( , =, 1 *



WLRQHJDODGHQGUXPRUFDVNZLWKRXWDOLGXVHDVLQJOH SLHFHRIVWURQJURSH/D\WKHURSHGRZQDQGVWDQGWKH FDVNKHDGXSIDLUO\FHQWUHGRQLWVPLGGOH%ULQJWKH

URSH VHQGVXSDQGKDOINQRWWKHPRQWRSRIWKHFDVN 2SHQWKLVNQRWRXWVLGHZD\VDQGSODFHWKHELJKWVWKXVIRUPHG RQHRQHLWKHUVLGHRIWKHFDVN5HHINQRWWKHHQGVWRPDNH DORRSIRUWKHKRRN)LJ 

7RVKRUWHQDVOLQJHLWKHUD WKURZEDFNDELJKWWRPDNH



.1276$1'63/,&(6

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

PDGH%LQGWKH\DUQVWRJHWKHUZLWKDPDUOLQHKLWFKXVLQJ WZRURSH\DUQRQDVPDOOHUVWURSDQGODUJHUVSXQ\DUQRQD ELJRQH)LJ  7KLV SURGXFHV D YHU\ SOLDEOH VWURS XVHIXO IRU VHFXULQJWKH KRRNV RI WDFNOHV HWF DW SRLQWV ZKHUH QR RWKHU VXLWDEOH DWWDFKPHQW SUHVHQWV LWVHOI HJ RQSROHVPDVWVVKURXGV WLJKWO\VHWXSZLUHVHWF:UDSLWURXQGDVLQILJXUH2Q D WKLFNPDVWMXVWRQHWXUQZLOOEHVXIILFLHQW  7KH *URPPHW 7KLV LV D VPDOO ILUP FRQWLQXRXV ORRS EHWWHUNQRZQWRWKHSDVVHQJHUVRQRFHDQOLQHUVDVDGHFN

6/,1*,1*/$6+,1*$1'6 ( , = , 1 *



TXRLW%HFDXVHLWVVL]HGRHVQRWRIIHUHQRXJKURRPIRUD VKRUW VSOLFH LW LV PDGH IURP D VLQJOHVWUDQGRIURSH7R PDNHLW8QOD\DVWUDQGRIURSHWKUHHDQGDKDOIWLPHVWKH FLUFXPIHUHQFHRIWKHJURPPHWUHTXLUHGHQGHDYRXULQJWR

SUHVHUYHWKHQDWXUDOWXUQVRIWKHOD\LQ WKHVWUDQG&ORVH XSWKHPLGGOHRIWKHVWUDQGLQWRDULQJRIWKHGHVLUHGVL]H )LJD 3DVVWKHHQGVURXQGLQWKHLURULJLQDOOD\XQWLO



.1276$1'63/,&(6

DOOVSDFHVKDYHEHHQILOOHG)LJE )LQLVKRIIDVIRUD /RQJ6SOLFH :KHUH D F\OLQGULFDO REMHFW KDV WR EH KRLVWHG RU ORZHUHG DQGQRFUDQHRUWDFNOHLVDYDLODEOHD3DUEXFNOH PD\SURYH XVHIXOSURYLGHGWKDWWKHKHLJKWRIWKHKRLVWLVQRWWRRJUHDW )LJ 0LGGOHDORQJURSHURXQGDSRVWRUSLQDWWKH WRSRIWKHKRLVW7DNHWKHWZRHQGVXQGHUWKHGUXPRU

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

6/,1*,1*/$6+,1*$1'6(,=,1*



WKHVOLQJDVLQILJXUHD7DNHELJKW,XQGHU,,DQGELJKW ,,, RYHU ,9 )LJ E  7KLV SURGXFHV D FHQWUH ORRS WR VOLS RYHU WKH QHFN RI WKH ERWWOH DQG WZR VLGH ORRSV DV FDUU\LQJ KDQGOHV

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





.1276$1'63/,&(6

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

6/,1*,1*/$6+,1*$1'6 ( , = , 1 *



GLVWDQFHEXWLIWKHJDQWOLQHLVVHFXUHGRQWKHFKDLUKHFDQ ORZHUKLPVHOIE\XVLQJD/RZHULQJ+LWFK 6HFXUH WKH JDQWOLQH WR WKH FKDLU E\ PHDQVRID'RXEOH 6KHHW %HQG ZLWK WKH HQG VWRSSHG VHFXUHO\ WR WKH EULGOH 7KLVLVHVVHQWLDOZKRHYHULVJRLQJWRGRWKHORZHULQJ 7KH KLWFKFDQEHVHHQLQILJXUHD:KHQKRLVWHGKLJKHQRXJK SDVVDZUDFNLQJURXQGERWKSDUWVRIWKHJDQWOLQHWRWDNHWKH ZHLJKWZKLOVWWKH/RZHULQJ+LWFKLVEHLQJPDGH)LJD   3XOO D ORQJ ELJKW RI WKH KDXOLQJ SDUW RI WKH JDQWOLQH WKURXJKWKHVWURSSDVVLWRYHU\RXUKHDGDQGGURSLWEHKLQG

\RXU IHHW )LJ E 3DVV \RXU IHHW EHKLQG WKH ELJKW DQG EULQJWKHODWWHUXSLQIURQWRI\RX)LJF +DXOWDXW RQWKHJDQWOLQHDQG\RXZLOOILQGWKDW\RXKDYHUHHINQRWWHG LWWRWKHFKDLUZKLFKLWZLOOKROGVHFXUHO\ 7RORZHU\RXUVHOIFDVWRIIWKHZUDFNLQJSXOOXSVRPH VODFNRQWKHKDXOLQJSDUWDQGDOORZWKHJDQWOLQHWRUHQGHU



.1276$1'63/,&(6

6/,1*,1* /$6+,1* $1'6(,=,1*



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

,,/$6+,1*6

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



.1276$1'63/,&(6

DQGXQGHUWKH KRUL]RQWDO DVLQILJXUHPDNLQJVRPH WKUHHRUIRXUWXUQVDQGKDXOLQJHDFKWDXWDVPDGH3XW RQWKUHHRUIRXUIUDSSLQJWXUQVEHWZHHQWKHVSDUVDVLQILJXUH

HSXOOLQJHDFKYHU\WDXWDQGLIQHHGEHEHDWLQJWKHP LQWRSRVLWLRQ7KHVHWXUQVHQVXUHWKDWWKRVHRIVWDJHZLOO

6/,1*,1*/$6+,1*$1'6(,= ,1*



KROGWKHVSDUVWLJKWO\WRJHWKHU)LQLVKZLWKDFORYHKLWFK RQWKH KRUL]RQWDO VSDU 7RSXWRQD'LDJRQDO/DVKLQJ 7KLVVKRXOGQRWEHSXWRQ XQWLO WKH HQGV RI WKH VSDUV FRQFHUQHG KDYH EHHQ VHFXUHO\ IL[HG 3XWDWLJKW7LPEHU+LWFKGLDJRQDOO\RYHUWKHFURVVLQJ )LJD &RQWLQXHZLWKWKUHHRUIRXUWLJKWWXUQVLQWKH VDPH GLUHFWLRQ DV WKHKLWFKDQGWKHVDPHQXPEHUDWULJKW DQJOHVWRLW)LJE 3XWRQIUDSSLQJWXUQVEHWZHHQWKH VSDUV)LQLVKZLWK D&ORYH+LWFKRYHURQHVSDU)LJF 

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



.1276$1'63/,&(6

EHQRURRPIRU7UDSSLQJWXUQVGULYHLQZHGJHVRIZRRGWR WLJKWHQWKHODVKLQJ)LJ 

6/,1*,1*/$6+,1*$1'6 ( , =, 1 *

,,,6(,=,1*6



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

GRJJHG H\HDQGOHYHUWKHPURXQGWKHEDUXQWLOWKHURSHV DUHWLJKWO\WRJHWKHU)LJ ,WZLOOEHIRXQGWKDWJUHDVLQJ



.1276$1'63/,&(6

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

6/,1*,1*/$6+,1*$1'6 ( , = , 1 *



7KHULGLQJWXUQVDUHERXQGWREHRQHOHVVLQQXPEHUWKDQ WKHORZHUV7XFNWKHHQGRIWKHFRUGXQGHUWKHODVWRIWKH ORZHUWXUQVDQGKDXOWDXW)LJD )LQLVKDVIRUD)ODW 6HL]LQJZLWKWKHIUDSSLQJWXUQDQG&ORYH+LWFK)LJ 



.1276$1'6 3 / , & ( 6

$5DFNLQJ6HL]LQJ VKRXOGEHXVHGZKHUHWKHVWUDLQXSRQ WKHWZRURSHVLVXQHTXDO6WDUWDVIRUD)ODW6HL]LQJZLWK D WXUQ URXQG ERWK URSHV DQG UHHYH WKH HQG WKURXJK WKH H\H  ,QVWHDG RI FRQWLQXLQJ ZLWK URXQG WXUQV GLS WKH HQG EH WZHHQ WKH URSHV DQG WKHQ ILJXUHRIHLJKW LW URXQG WKHP D GR]HQRUVRWLPHV'LSWKHHQGXQGHUWKHODVWWXUQWDNHQ )LJ D  DQG KDXODOOWKHWXUQVWDXW1RZSXWRQWLJKW URXQG ULGLQJ WXUQV ZRUNLQJ EDFNWRZDUGVWKHH\HDQGDIWHU WKHODVWRQHDJDLQGLSWKHHQGEHWZHHQWKHURSHV)LJ  )LQLVKRIIDVIRUD)ODW6HL]LQJ

&+$37(56(9(1

0RUHIDQF\ZRUNPDWVDQGSODLWV ,0$76

DOO URSH ZRUN²KLWFKLQJ VSOLFLQJ IDQF\ ZRUN HWF ²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

WRHDFKRWKHUDWDGLVWDQFHDSDUWHTXDOWRWKHOHQJWKRI PDWWLQJUHTXLUHGDQGDURXQGWKHPZLQGWKHURSHZKLFK 



.1276$1'6 3 / , & ( 6

ZLOO IRUP WKHZDUS /D\ WZR SLHFHV RI ZRRG DFURVV WKH ZDUS DQG FRQQHFW $  WR HYHU\ RGGQXPEHUHG VWUDQG DQG

%  WR HYHU\ HYHQQXPEHUHG /LIW XS $  7KLV DOVR OLIWV HYHU\ DOWHUQDWH VWUDQG ,Q WKH VSDFH EHWZHHQ WKHVH DQG WKH VWUDQGV QRW OLIWHGSDVV D VHFRQG URSH FDOOHG WKHZHIW DFURVV  'URS $  DQG OLIW %  7KLV DOVR OLIWV WKH RWKHU VHW RI DOWHUQDWH VWUDQGV 3DVV WKH ZHIW EDFN LQ WKH VSDFH EHWZHHQ WKH WZR VHWV RIVWUDQGV&RQWLQXHLQWKLVIDVKLRQ XQWLO\RXUHDFKWKHRWKHUHQGRIWKHZDUS(DFKWLPHWKH ZHIW LV SDVVHG LW PXVW EH SUHVVHG KRPH ILUPO\ ZLWK WKH

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

*  RYHU +  XQGHU LWVHOI DQG RYHU $  7KLV IRUPV ILJXUH6LE 1RZ IROORZ URXQG HLWKHU E\ WDNLQJ , EDFN DORQJWKHSDWKRI,,SDVVLQJRYHURUXQGHUDVLWGRHVRUE\ WDNLQJ ,, EDFN DORQJ WKH SDWK RI , 7KH IROORZLQJ URXQG PD\ EH FRPSOHWHG DV PDQ\ WLPHV DV GHVLUHG)LJXUHF VKRZVRQO\RQFH )LQLVKE\OHDYLQJWKHHQGVXQGHUVWUDQGV ZKHUHWKH\ZLOOQRWEHVHHQ $6TXDUH0DW0DNHWKHORRSVDVVKRZQLQILJXUHD LQWKHPLGGOHRIWKHURSH3DVVWKHELJKW $ RYHU %

025()$1&<:25. 0$76$1'3 / $ , 7 6



DQGXQGHU &EXWGRQRWSDVVELJKW ' RQWKHRWKHUVLGH RIWKHVDPHORRS0DNHDORRSRQHQG,DQGSDVVLWXQGHU HQG,,)LJE 3DVVWKHELJKW … EXWQRWWKHELJKW

) RYHU ' XQGHU % RYHU & DQGXQGHU $ )RUP

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



.1276$1'6 3 / , & ( 6

025() $ 1 & < :25.0$76$ 1 ' 3 / $ , 7 6



RYHU '  )LJ E  )ROORZ HDFK HQG URXQG WKH RWKHU V SDWKRQFHDVLQILJXUHF RUPRUHRIWHQ

,, 6(11,76

6HQQLWLVDJHQHUDOWHUPIRUEUDLGHGURSHVLQZKLFKWKH VWUDQGV DUHSODLWHGQRWWZLVWHGWRJHWKHU7KHFRPPRQHVW IRUPXVHGIRUORJOLQHVEHOOODQ\DUGVEHWWHUTXDOLW\FORWKHV OLQHVHWFLV5RXQG6HQQLWZKLFKPD\EHPDGHIURPDQ\ HYHQQXPEHURIVWUDQGVDOWKRXJKZLWKVL[RUPRUHLWZLOO ORRNEHWWHUIRUPHGURXQGDKHDUW7KLVKRZHYHUKDVEHHQ RPLWWHGIURPILJXUHIRUHDVLHULOOXVWUDWLRQ

:KLSWKHHQGVRIWKHVWUDQGVWRJHWKHU,WLVSRVVLEOHWR PDNH D URXQG VHQQLW HQG WR D ODLG URSH E\ GLYLGLQJ WKH ODWWHU V VWUDQGV LQWR WKH QXPEHU UHTXLUHG ,Q WKLV HYHQW SXW WKH ZKLSSLQJ RQ WKH ODLG URSH DW WKH SRLQW ZKHUH WKH VHQQLW LV WR FRPPHQFH   &URVV HDFK QHLJKERXULQJ SDLURI VWUDQGVDQGDOORZLQJWKHHYHQQXPEHUHGWRKDQJGRZQOLIW WKHRGGQXPEHUHGXSRXWRIWKHZD\,QILJXUHDWKH



.1276$1'6 3 / , & ( 6

HYHQQXPEHUHG VWUDQGV KDYH JRQH WR WKH ULJKW DQG WKH RGG QXPEHUHGWRWKHOHIW7KH\ZLOOFRQWLQXHWRJRLQWKHVDPH GLUHFWLRQV3DVVHDFKHYHQQXPEHUHGVWUDQGRYHUWKHRGG QXPEHUHGVWUDQGWRLWVULJKWDQGZKHQWKLVKDVEHHQGRQH KROGWKHIRUPHUXSDQGDOORZWKHODWWHUWRGURSGRZQ)LJ E   &URVV HDFK RGGQXPEHUHG VWUDQG RYHU WKH HYHQ QXPEHUHGWRLWVOHIWKROGLWXSDQGDOORZWKHHYHQQXPEHUHG WRGURSGRZQ5HSHDWVWDJHVDQGDOWHUQDWHO\DQGWKH UHVXOW VKRXOG EH ILJXUH F 7KH SURFHVV PD\ VRXQG FRP SOLFDWHGEXWLQSUDFWLFHLVYHU\VLPSOH 6TXDUH6HQQLWLVPDGHZLWKHLJKWWZHOYHRUVL[WHHQVWUDQGV 'LYLGHWKHVWUDQGVLQWRWZRHTXDOORWV7DNHRQHVWUDQG IURP WKH ULJKWKDQG ORW DQG OHDG LWURXQG WKH EDFN DQG WKURXJK WKH PLGGOH RI WKH OHIWKDQG VWUDQGV EDFN WR LWV RZQ ORWLHZLWKHLJKWVWUDQGVLWZLOOSDVVRXWVLGHWZRDQGLQVLGH WZRRIWKHOHIWKDQGVWUDQGV)LJ ZLWKWZHOYHRXWVLGH

WKUHH DQG LQVLGH WKUHH DQG ZLWK VL[WHHHQ RXWVLGHIRXUDQG LQVLGH IRXU7DNHDVWUDQGRIWKHOHIWKDQGORWURXQGWKH EDFN DQG WKURXJK WKH PLGGOH RI WKH ULJKWKDQG VWUDQGV WR UHWXUQWRLWVRZQORW5HSHDWVWDJHVDQGDOWHUQDWHO\

025()$1&<:25.0$76$1'3 / $ , 7 6



XVLQJ HDFKVWUDQGLQURWDWLRQ7REHJLQZLWKWKHVHQQLWPD\ EH VRPHZKDW VKDSHOHVV EXW DIWHU D IHZ SDVVHV KDYH EHHQ PDGHLWZLOOWLJKWHQXS )ODW6HQQLW)LJ 6HFXUHWKHVWUDQGVDQ\QXPEHU RYHUDURSHRUEDU%ULQJWKHULJKWKDQGVWUDQGDFURVVWR

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



.1276$1'6 3 / , & ( 6

LQLWVWXUQLWEHFRPHVWKHLQVLGHVWUDQGRIWKHRWKHUJURXS 5HSHDWVWDJHVDQGDOWHUQDWHO\

025()$1&<:25.0$76$1'3/$,76



&RPPRQ6HQQLW DOVRUHTXLUHVDQRGGQXPEHURIVWUDQGV 'LYLGHWKHPLQWRWZRJURXSVRQHZLWKRQHPRUHVWUDQG WKDQ WKH RWKHU  %ULQJ WKH RXWVLGH VWUDQG RI WKH ODUJHU JURXS DFURVV DQG DGG LW WR WKH VPDOOHU ZKLFK RI FRXUVH QRZ EHFRPHV WKH ODUJHU  5HSHDW VWDJHDG LQILQLWXP )LJXUH  VKRZV &RPPRQ 6HQQLW EHLQJ PDGH ZLWK WKUHH VWUDQGV ,,, 3/$,76

3ODLWV DUH DOOLHG WR EXW PRUH FRPSOLFDWHG WKDQ VHQQLWV 7KH\ PD\ EH PDGH ZLWK RQH VWUDQG RU ZLWK D QXPEHU 7KHVLPSOHVWVLQJOHVWUDQGSODLWLVWKH&KDLQ3ODLW$WWKH HQGRIWKHVWUDQGPDNHDQ2YHUKDQG.QRWEXWXVHDVPDOO ELJKWDWWKHQHDUE\HQGLQVWHDGRIERWKHQGV7KLVZLOOOHDYH ORRS $  DV LQ ILJXUH D  7KURXJK ORRS $  SXOO D VPDOOELJKWRIWKHORRVHHQG % 7KURXJKWKHQHZORRS WKXVIRUPHGSXOODQRWKHUELJKWRIWKHORRVHHQGDQGVRRQWR



.1276$ 1 ' 63 / , & ( 6

PDNHILJXUH7RILQLVKUXQWKHHQGWKURXJKWKHODVW ORRS $ 'RXEOH &KDLQ 3ODLW LV VOLJKWO\ PRUH FRPSOLFDWHG  )RUP D )LJXUHRI(LJKW .QRW EXW GR QRW SXOO LW WLJKW )LJ D   'LS WKH HQG , WKURXJK WKH ELJKW %  7KLV OHDYHV D QHZ ELJKW XQGHU $   'LS WKH HQG WKURXJK WKH QHZ ELJKW 7KLVOHDYHVDQRWKHUQHZRQHXQGHU % &RQWLQXHGLSSLQJ

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

025()$1&<:25.0$76$1'3 / $ , 7 6



D ELJKW RI WKH ORRVH HQG DOWHUQDWHO\ WKURXJK ORRSV WR OHIWDQGULJKWDQGGUDZLQJWKHORRSVWLJKW)LJF 7R ILQLVK SDVV WKHHQGWKURXJKWKHODVWORRSEXWRQHPDGH WKURXJK WKH ODVW ORRS DQG GRZQ EHWZHHQ WKH ODVW WZR PLGGOHVWUDQGVDQGKDXOWDXW 3ODLWVFDQEHPDGHZLWKWKUHHRUPRUHVWUDQGVE\UHSHWL WLRQRIVRPHRIWKHNQRWVGHVFULEHGHDUOLHULQWKLVERRN

&RQWLQXRXV &URZQLQJ IRU LQVWDQFH LH &URZQ .QRWV IDVKLRQHGRQHDIWHUWKHRWKHUZLWKWKHVDPHVWUDQGVZLOO SURGXFH D SODLW ,I DOO WKH &URZQV DUH PDGH LQ WKH VDPH GLUHFWLRQ D VSLUDO GHVLJQ LVDFKLHYHGLIDOWHUQDWHO\WRULJKW DQGOHIWDFKDLQSDWWHUQ&RQWLQXRXV:DOO.QRWWLQJZLOO QRW SURGXFHDVDWLVIDFWRU\SODLWXQOHVVPDGHURXQGDKHDUW EXW&RQWLQXRXV:DOOLQJDQG&URZQLQJLH:DOODQG&URZQ .QRWVDOWHUQDWLQJZLOO6RWRRZLOO&RQWLQXRXV'LDPRQG



.1276$ 1 ' 63/ , & ( 6

DQG &URZQ .QRWWLQJ DOWKRXJK WKLV UHTXLUHV JUHDWHU VNLOO HVSHFLDOO\LIXVLQJDQXPEHURIVWUDQGV $Q2YHUKDQG.QRW3ODLWFDQEHPDGHZLWKIRXUVL[RUHLJKW VWUDQGV :KLS WKH HQGV RI WKH VWUDQGV WRJHWKHU DQG QXPEHU WKHPLQDFLUFOH7KHQ2YHUKDQG.QRWSDLUVRIVWUDQGVLQ WKHIROORZLQJVHTXHQFHV :LWKIRXUVWUDQGVZLWKZLWKZLWKZLWK HWF :LWKVL[VWUDQGVZLWKZLWKZLWKHWF :LWKHLJKWVWUDQGVZLWKZLWKZLWKZLWK DQGVRRQUHWDLQLQJWKHVDPHVHTXHQFH ,9&29(5,1*$523(

7KHUH DUH WZR UHDVRQV IRU FRYHULQJ D URSH WR SURWHFW LW DQG WR GHFRUDWH LW )RU WKH IRUPHU SXUSRVH ZRUPLQJ SDU FHOOLQJ DQG VHUYLQJ SURYLGH D JHQHUDO SURWHFWLRQ DJDLQVW WKH ZHDWKHUDQGQRUPDOZHDUDQGWHDUEXWLILQXVHDURSHLV FKDILQJ DJDLQVW VRPHWKLQJ HOVH DGGLWLRQDO VDIHJXDUGV PD\ EHQHHGHGVXFKDVVZRUGRUWKUXPPDWWLQJEHWZHHQWKH URSHDQGDKDUGREMHFW+RZHYHURFFDVLRQVDULVHZKHQD URSH²RU HYHQPRUHOLNHO\DZLUH²PD\EHUXEELQJDJDLQVW VRPHWKLQJVRIWHUWKDQLWVHOILQZKLFKHYHQWLWLVWKHODWWHU WKDWUHTXLUHVSURWHFWLRQ6DLOVDUHRIFRXUVHDQREYLRXV H[DPSOH 7KH EHVW ZD\ JHQHUDOO\ WR GHDO ZLWK WKLV SUREOHP LV WR ELQG VRPHWKLQJ UHODWLYHO\ VRIW DQG \LHOGLQJ URXQG WKH URSH RU ZLUH 2QH PDWHULDO RI DQFLHQW XVH IRU WKLV LV%DJ R

:ULQNOH ZKLFK LV VLPSO\ LI VRPHZKDW WHGLRXVO\ PDGH 6HL]HWRJHWKHUWKHHQGVRIDORQJSLHFHRIVPDOOFRUGDJHDQG VWUHWFKLWRXWGRXEOHG,QVHUWDSLHFHRIZRRGWRDFWDVD VSUHDGHUNHHSLQJWKHWZRSDUWVDZD\IURPHDFKRWKHU

025( )$1&<:25.0$76$1'3/$,76



0LGGOH D WKUXP RI VRPH VRIW ODLG VWXIIDFURVVWKHWZROLQHV DQGSXOOLWVHQGXSEHWZHHQWKHP)LOOXSWKHOHQJWKRIWKH OLQHVZLWKWKUXPVVRDWWDFKHG)LJ 

&RFNVFRPELQJ FDQ EH ERWK GHFRUDWLYH DQG IXQFWLRQDO HJRQWKH6SLQGOH(\HGHVFULEHGLQ&KDSWHU:LWKDVLQJOH OLQHLWLVVLPSO\+DOI+LWFKHVSXWRQDOWHUQDWHO\WRULJKWDQG OHIW DV LQ ILJXUH D *UHDWHU SURWHFWLRQ DQG PRUH HODERUDWH GHFRUDWLRQDUHJDLQHGE\XVLQJPRUHVWUDQGV6WRSSHU



.1276$1'63 / , & ( 6

WKHVHWRWKHURSHULQJRUZKDWHYHULWLVWKDWKDVWREHFRYHUHG  :LWKHDFKVWUDQGLQVXFFHVVLRQIRUPWZR+DOI+LWFKHV RQH WRZDUGV RQH DZD\ IURP WKH VWDUWLQJ SRLQW DQG FRQ WLQXHLQWKLVZD\DOZD\VWDNLQJWKDWVWUDQGZKLFKLVIDUWKHVW EDFN)LJE  3RLQWLQJD5RSH KDVDGRXEOHSXUSRVHIRULQDGGLWLRQWR EHLQJWKHQHDWHVWLWLVDOVRWKHVRXQGHVWZD\RISURWHFWLQJ DURSH VHQG3XWDVWRSRQWKHURSHDWDGLVWDQFHIURPLWV HQG HTXDO WR WKUHH WLPHV LWV FLUFXPIHUHQFH  8QOD\ WKH URSHWRWKHVWRSDQGWKHQXQOD\WKHVWUDQGV6SOLWDQXP

EHU RI RXWVLGH \DUQV DQG PDNH DQ HYHQ QXPEHU RI QHWWOHV 6WRSWKHVHQHWWOHVEDFNRQWKHVWDQGLQJSDUW6FUDSHWKH UHPDLQLQJ \DUQV GRZQ WR D WDSHULQJ KHDUW DQG PDUO WKHP GRZQ YHU\ WLJKWO\ ZLWK WZLQH'LYLGH WKH QHWWOHV OD\LQJ HYHU\DOWHUQDWHRQHDORQJWKHKHDUWDQGDOORZLQJWKHRWKHUV

025()$1&<:25.0$76$1'3/$,76



WRGURSGRZQDZD\IURPLW$WWKHSRLQWZKHUHWKH\GLYLGH LQWRWKRVHJRLQJXSDQGWKRVHGRZQELQGRQWKUHHWXUQVRI WZLQHDQGWDNHDKLWFKZLWKWKHODVWWXUQ5HYHUVHWKH QHWWOHVLHWKRVHWKDWZHUHXSFRPHGRZQDQGYLFHYHUVD 7DNHWKUHHPRUHWXUQVRIWZLQHDQGKLWFK)LJ   &RQWLQXH UHSHDWLQJ VWDJHV  WR  XQWLO WKH SRLQW KDV UHDFKHG WKH GHVLUHG OHQJWK  )LQLVK RII E\ ZRUNLQJ D VPDOOH\HLQWKHHQGZLWKQHWWOHVDQG\DUQVPDUOHGRYHUZLWK WZLQH 7KH URSH QHHG QRW HQG LQ DQ DFWXDO SRLQW LW FDQ EH D WUXQFDWHG FRQH LI ZLVKHG 0RUHRYHU WKH QXPEHU DQG RUGHU RIQHWWOHVWDNHQXSRUGRZQQHHGQRWEHDVGHVFULEHGDERYH ZKLFK JLYHV PHUHO\ WKH VLPSOHVW GHVLJQ 7KH\ FDQ IRU LQVWDQFHEHZRUNHGLQJURXSVRIWKUHHRUIRXURQO\RQHRI ZKLFKLVWDNHQXSDWDWLPHZKLOVWWKHRWKHUVDUHKHOGEDFN ZKLFKZLOOSURGXFHDVSLUDOHIIHFWDQGRQFH\RXKDYHJUDVSHG WKH XQGHUO\LQJ SULQFLSOHV RI SRLQWLQJ WKHUH LV QR UHDVRQ ZK\ \RXVKRXOGQRWGHYLVH\RXURZQLQGLYLGXDOSDWWHUQ $QXPEHURIYDULDWLRQVFDQEHDFKLHYHGE\ZRUNLQJLQ YDULRXVIDQF\NQRWVIRULQVWDQFHE\VWDUWLQJZLWKD7XUN V +HDGVHHEHORZ RYHUWKHVWRS\RXSXWRQWKHVWUDQGVDW WKH SRLQW XS WR ZKLFK WKH\ ZHUH XQODLG DQG E\ ILQLVKLQJ ZLWK D )RRWURSH .QRW LQVWHDG RI D VPDOO H\H 'LDPRQG &URZQDQG:DOO.QRWVFDQDOVREHXVHGHLWKHUVLQJO\RULQ FRPELQDWLRQDWHLWKHUHQGRIWKHSRLQW 2QH PHWKRG RI PDNLQJ WKH SRLQW LWVHOI ZKLFK GRHV QRW HPSOR\ WKH URSH V RZQ \DUQV LV WR FRYHU WKH KHDUW ZLWK +DOI+LWFKLQJ6WRSRQHHQGRIWKHWZLQHRQWKHKHDUW :LWKWKHRWKHUPDNHDVHULHVRI+DOI+LWFKHVURXQGWKH ODVWWXUQRIWKHVWRSSLQJDVVKRZQLQILJXUH3XWRQ VHFRQG WKLUG IRXUWK URZV HWF WR FRYHU WKH KHDUW PDNLQJ HDFKKLWFKWKURXJKWKHELJKWRIWKH+DOI+LWFKDERYHLWLQ WKHSUHFHGLQJURZ



.1276$1'63/,&(6

+HUHDJDLQWKHSRLQWPD\EHVWDUWHGZLWKDIDQF\NQRW DQGWKHILUVWURZRI+DOI+LWFKHVPDGHWKURXJKLWVORZHVW WXUQ,I+DOI+LWFKLQJLVWRORRNVPDUWKRZHYHULWPXVWEH WLJKWO\PDGHDQGLWPD\EHIRXQGWKDWDQHHGOHLVQHFHVVDU\ WR SDVV WKH HQG WKURXJK WDXWO\KLWFKHG ELJKWV 7KH PRVW VDWLVIDFWRU\ NLQG WR XVH LV D VDLOPDNHU V QHHGOH FRPSOHWH ZLWKOHDWKHUSDOP

+DOI +LWFKLQJ LV DOVR VXLWDEOH DV D GHFRUDWLYH²DQG WR VRPH H[WHQW SURWHFWLYH²FRYHULQJ IRU ERWWOHV MDUV DQG RWKHU F\OLQGULFDOREMHFWV2QWKHVHLWLVSUREDEO\EHWWHUWRVWDUW ZLWKDGHFRUDWLYHNQRWRUDOHQJWKRIWLJKWFKDLQSODLWLQJLQ RUGHUWRSURYLGHDILUPEDVHRQZKLFKWR DQFKRU WKHILUVW URZRIKLWFKHV $QRWKHU VLPLODU DQG VLPSO\ PDGH FRYHULQJ LV6SDQLVK +LWFKLQJ VXLWDEOH IRU XVH ZLWK VPDOO FRUG DOWKRXJK XQOLNH +DOI +LWFKLQJ LW HPSOR\V D QXPEHU RI VHSDUDWH VWUDQGV QRW RQH FRQWLQXRXV SLHFH :LWK WKH HQG RI RQH VWUDQG² FDOOHGWKHZDUS²PLGGOHDQXPEHURIKLWFKLQJVWUDQGVDURXQG WKH URSH RU RWKHU REMHFW7DNHWKHZDUSURXQGDJDLQD VKRUWGLVWDQFHEHORZLWVILUVWFLUFXLWDQGZLWKHDFKRIWKH

025()$1&<:25.0$76$1'3/$,76

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

VXLWDEOHIRUDQ\F\OLQGULFDOREMHFWDQGIRUWKHPLGGOHRUHQG RI D URSH ,W UHTXLUHV DQ HYHQ QXPEHU RI VWUDQGV²OLNH 5RXQG6HQQLWWRZKLFKLWLVUHODWHG²EXWWKHVHPD\FRQVLVW RIRQHWZRWKUHHRUDQ\QXPEHURILQGLYLGXDOSDUWV7KH LOOXVWUDWLRQVVKRZIRXUVWUDQGVHDFKGRXEOHGLQXVHZKLFK



.1276$1'63/,&(6

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

RYHUDQGRYHURYHUDQGRYHU1RZRYHU ZLOOFRPSOHWHWKHEHJLQQLQJRIWKHQH[WVHTXHQFH &RQWLQXRXV &URZQ :DOO DQG 'LDPRQG .QRWWLQJ FDQ HDFK LQGLYLGXDOO\ RU LQ FRPELQDWLRQ ZLWK RQH RIWKHRWKHUVEH XVHGWRFRYHUDURSH6WRSWKHHQGVRIWKHVWUDQGVWRWKHURSH ZKHUH WKH FRYHULQJ LV WR FRPPHQFH DQGWKHQZLWKWKHP PDNHDVHTXHQFHRIWKHFKRVHQNQRWV

025()$1&<:25.0$76$1'3/$,76



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²XVH D SULFNHU RI VRPHVRUWWRGRLW²DWULJKWDQJOHVWRHDFKRWKHU3XWD OLJKWZKLSSLQJRQWKHPDQGFURZQWKHPDVVKRZQLQILJXUH D7DNHWKHIRXUHQGVRIFRUGVSLUDOO\GRZQWRWKH RWKHU HQG RI WKH PRXVH  DQG ZKLS WKHP WHPSRUDULO\  &URZQ WKHHQGVXSZDUGVULJKWKDQGHG)LJE :RUN WKH FRUGV EDFNWRWKHWRSRIWKH PRXVH E\WXFNLQJHDFK DOWHUQDWHO\XQGHUDQGRYHUWKHVWUDQGVRIWKHVSLUDODOUHDG\



.1276$1'63/,&(6

SXW RQ LQ WKH RSSRVLWH GLUHFWLRQ WR WKH VSLUDO
WXFNWKHPRXWRIVLJKWDIWHUWULPPLQJWKHPFXWWKHVHL]LQJV DQGGUDZRXWWKHZHDYHHYHQO\9DULDWLRQVWRWKHSDWWHUQ

025()$1&<:25.0$76$1'3/$,76



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



.1276$1'63/,&(6

PRUHWXUQVZLOOEHQHHGHGWRFRYHULWHIIHFWLYHO\DQGWKH

LQFUHDVLQJ  SURFHVV FDQ EH UHSHDWHG DV RIWHQ DV QHFHVVDU\ EHIRUH FRPPHQFLQJ WKH IROORZLQJ URXQG $V ZLWK PDQ\ WKLQJVSUDFWLFDOH[SHULPHQWLVWKHEHVWWHDFKHU

7RPDNHDIRXUSDUW7XUN V+HDG 0DNHDQ2YHUKDQG .QRWDVLQILJXUH D&DUU\WKHHQG,URXQGWRSDVV XQGHUDW $ DQG % DVVKRZQLQILJXUHE&DUU\WKH

HQG,URXQGDJDLQWRSDVVRYHUDW & XQGHUDW ' DQG RYHUDW ( )ROORZURXQGRQFHRUWZLFH 7R PDNH PRUH FRPSOLFDWHG NQRWV HVSHFLDOO\ LI WKH\DUHWR EHORQJRQHVWKHVLPSOHUZD\LVWRXVHHLWKHUVWXGVRUD

IRUPHU $VWKHVWXGVKDYHWREHGULYHQLQWRWKHREMHFWWR EH FRYHUHG WKLV SUHFOXGHV WKHLU XVH RQ PHWDO EXWD IRUPHU

FDQEHXVHGRQDQREMHFWRIDQ\PDWHULDO

025()$1&<:25.0$76$1'3/$,76



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

HLWKHU HQG PDNH D VXFFHVVLRQ RI RYHU  FURVVLQJV  7DNH WKH URSH SDVW WKH VWDUWLQJ  VWXG DQG URXQG WKH RQH EH\RQG LW  0DNH WKH VDPH QXPEHU RI VSLUDOWXUQVDVSUHYLRXVO\WR WKH QH[W RSSRVLWH QXPEHU  VWXG DW WKH RWKHU HQG RI WKH NQRW SDVVLQJ RYHU ZKHUH WKH SUHFHGLQJ WXUQ SDVVHG XQGHU DQG XQGHU ZKHUH LW SDVVHG RYHU  7DNH WKH URSH URXQG WKH

RSSRVLWH QXPEHU  VWXG DV LQ VWDJH  DQG PDNH VSLUDO WXUQV EDFN WR WKH VWDUW DJDLQ SDVVLQJ RYHU RU XQGHU LQ FRQWUDVW WR WKH SRVLWLRQ RI WKH SUHFHGLQJ WXUQ  &RQWLQXH LQ WKLV IDVKLRQ IURP RQH HQG RI WKH NQRW WR WKH RWKHU XQWLO DOO WKH VWXGV KDYH EHHQ XVHG ZKHQ WKH ILUVW VWDJH ZLOO KDYH

$VGHYLVHGE\&DSWDLQ(:'HQLVRQ51



.1276$1'63/,&(6

EHHQFRPSOHWHG)ROORZURXQGRQFHWZLFHRUPRUHRIWHQ WRFRPSOHWHWKHFRYHULQJ 8VLQJD)RUPHUWRPDNHD7XUN V+HDG KDVWKHDGYDQWDJH WKDWWKHNQRWFDQEHPDGHURXQGDQREMHFWRIDQ\PDWHULDO LQFOXGLQJ PHWDO VLQFH WKH SLQV DUH GULYHQ LQWR D TXLWH VHSDUDWH SLHFH RI ZRRG 7KLV LV WKHIRUPHUD ERDUG ZKLFK UDUHO\QHHGVWREHPRUHWKDQLQVTXDUHDQGRQZKLFKFDQ EH IDVKLRQHG D 7XUN V +HDG RI DOPRVW DQ\ FRPSOH[LW\ ZLWK WKHYDOXDEOHDGGHGDWWUDFWLRQVWKDWDOOWKHWXFNVDUHPDGHRQ WKHVDPHVLGHRIWKHREMHFWVRWKDWWKHUHLVQRQHHGWRNHHS WXUQLQJLWRYHURUPRYLQJURXQGWRWKHEDFNWKDWLWLVHDVLHU WR UHPHPEHU ZKHUH WR PDNH WKH WXFNV DQG WKDW WKH WXFNV ZKHQPDGHKROGWKHPVHOYHVLQSODFH7RXVHD IRUPHU   2Q WKH SODQNLQJ VHW XS WZR SDUDOOHO URZV RI VL[ RU VHYHQSHJVRUSLQVHDFKDVLQILJXUHD7KH\KDYHWREH ZLWKGUDZQ ODWHU VR GR QRW GULYH WKHP LQ WRR WLJKWO\  /DVK WKH IRUPHU WR WKH REMHFW WR EH FRYHUHG YHU\ VHFXUHO\ ZLWKWKHURZVRISLQVDWULJKWDQJOHVWRLWVD[LVDVLQILJXUH D/D\ WKHVWDQGLQJHQGRIWKHFRUGLQIURQWRI/HIW +DQG1RSLQDQGWDNHWKHZRUNLQJHQGURXQG5LJKW+DQG 1R  DQG WKHQ DFURVV GLDJRQDOO\EHWZHHQWKHWZRURZVRI SLQV  %ULQJ WKH ZRUNLQJ HQG URXQG XQGHU WKH REMHFW DQG XS RQ WKH QHDU VLGH RI WKH IRUPHU  RYHU WKH VWDQGLQJ HQG DQG URXQG /HIW +DQG 1R  7DNH WKH ZRUNLQJ HQG DFURVV WR 5LJKW +DQG 1R  FURVVLQJ WKH ILUVW GLDJ RQDO VWUDQG D RYHULI \RX DUH XVLQJ DQ HYHQ QXPEHU RI SLQV RQ HLWKHU VLGH RU E XQGHULI \RXDUHXVLQJDQXQHYHQ QXPEHU )LJ E  %ULQJ WKH ZRUNLQJ HQG URXQG XQGHU WRWKHQHDUVLGHDQGWXFNLWXQGHUDQGRYHUWR/HIW+DQG 1RSLQ&RQWLQXHWRSDVVWKHZRUNLQJHQGIURPOHIWWR $V GHYLVHG E\ 0U -RKQ $OH[DQGHU DQG GHVFULEHG LQ .QRWV 6SOLFHV DQG )DQF\ :RUN E\ &KDUOHV / 6SHQFHU 'RGG 0HDGDQG &RPSDQ\   @

025()$1&<:25.0$76$1'3/$,76



ULJKWDQGWKHQURXQGXQGHUWRWKHQHDUVLGHLHIURP/HIW +DQG 1RWR5LJKW+DQG1RWR/HIW+DQG1RWR 5LJKW+DQG1RHWFSDVVLQJLWHLWKHURYHURUXQGHUHDFK VWUDQG LW FURVVHV LQ WKH RSSRVLWH ZD\ WR WKDW LQ ZKLFK WKH SUHYLRXV WXUQ FURVVHG WKDW VWUDQG *HQHUDOO\ WKLV PHDQV WKDW WKH ZRUNLQJ HQG VLPSO\ JRHV XQGHU DQG RYHU VXFFHVVLYH VWUDQGVEXWRFFDVLRQDOO\\RXZLOOILQGWKDW\RXKDYHWR

PDNH WZR VXFFHVVLYH RYHUV  WR ILW LQ ZLWK WKH OD\ RI WKH SUHYLRXV WXUQ 7KXV LQILJXUHFWKHHQGKDVSDVVHGRYHU XQGHURYHUWR/HIW+DQG1RSLQDQGZLOOQRZKDYHWRJR RYHU DJDLQ WKHQ XQGHU DQG RYHU WR 5LJKW +DQG 1R  EHFDXVH WKH SUHYLRXV WXUQ ZHQW XQGHU WXUQ , :KHQWKHZRUNLQJHQGKDVUHDFKHGWKHODVWOHIWKDQGSLQ



.1276$1'63/,&(6

DV LQ ILJXUH,G WKH NQRW LV FRPSOHWH UHDG\ IRU GRXEOLQJ 7KH SLQV DUHQRZUHPRYHGWKHODVKLQJVZKLFKKROGWKH

IRUPHU  WR WKH REMHFW DUH FXW DQG WKH IRUPHU  LV VOLG RXW OHDYLQJ WKH NQRW ORRVHO\ EXW FRUUHFWO\ ZRYHQ URXQG WKH REMHFW$OOWKDWUHPDLQVLVWRGRXEOHRUWUHEOHLWLIGHVLUHG DQG WR ZRUN LW WLJKW ,Q GHVFULSWLRQ WKH SURFHVV PD\ VHHP FRPSOLFDWHG EXW LW LV IDLUO\ VWUDLJKWIRUZDUG LQ SUDFWLFH 8VLQJDQHYHQQXPEHURISLQVLQHDFKURZZLOOSURGXFHD 7XUN V+HDGZLWKDQXQHYHQQXPEHURIWXUQVDQGYLFHYHUVD

&+$37(5( , * + 7

%ORFNVDQGWDFNOHV ,%/2&.6

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



.1276$ 1 ' 6 3 / , & ( 6

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

%/2&.6$ 1 ' 7$&./(6



 :RUP SDUFHO DQG VHUYH WKH JURPPHW DQG WR PDNH D UHDOO\ILUVWFODVVMRERILWVHZRQWLJKWO\DOHDWKHUMDFNHW RYHUWKHVHUYLQJ3ODFHWKHEORFNDQGWKLPEOHLQVLGHWKH VWURSDQGVHFXUHWKHZKROHE\ERWKHQGVHLWKHUYHUWLFDOO\ RUKRUL]RQWDOO\VRWKDWHYHU\WKLQJLVKHOGLQSRVLWLRQ3XW DWLJKW5RXQG6HL]LQJRQWKHWZRSDUWVRIWKHVWURSEHWZHHQ WKHWKLPEOHRUVSDU DQGWKHEORFN)LJ 

7RILWDGRXEOHVWURSWRDEORFN 0DNHDJURPPHWDV LQVWDJHDERYHEXWRIGRXEOHWKHOHQJWK'RXEOHLWLQWR WZRHTXDOELJKWVDQGVHL]HWKHPDWWKHFURZQ&DUU\RXW VWDJHVDQGDVDERYHH[FHSWWKDWWKHUHZLOOEHIRXUSDUWV RIWKHVWURSWRVHL]HQRWWZR

,,7$&./(6

%ORFNV KDYH WZR GLIIHUHQW IXQFWLRQV 2QH LV WR DOWHU WKH GLUHFWLRQRIDURSHVRWKDWLWFDQEHOHGWRDZLQFKRUWRD SODFHZKHUHDPDQFDQKDXORQLWPRUHHDVLO\$OPRVWDQ\ W\SHRIEORFNFDQEHXVHGWKXVDVD/HDGLQJ%ORFN EXW UHPHPEHUWKDWLWZLOOKDYHWREHIL[HGE\DVKDFNOHKRRN



.1276$1'63/,&(6

KLWFKRUVSOLFHILUPO\HQRXJKWRWDNHWKHVWUDLQWKDWZLOO FRPHRQLW)LJ  7KH PRVW XQXVXDO WXJRIZDU FRQWHVW , HYHU WRRN SDUW LQ ²XQVXFFHVVIXOO\ , UHJUHW WR DGG²PDGH LQJHQLRXV XVH RI OHDGLQJEORFNV7KHYHQXHZDVWKHIRUHSDUWRIDUHODWLYHO\

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

%/2&.6$1'7$&./(6



WKH OLIWLQJ RU KDXOLQJ SRZHU RI \RXU DUP FDSVWDQ ZLQFK ZLQGODVV HWF ,Q DOO WDFNOHV H[FHSW WKH 6LQJOH :KLS²ZKLFK RIIHUV PHUHO\ D PRUH FRQYHQLHQW KDXOLQJ SRVLWLRQ EXW QR JDLQLQSRZHU²DWOHDVWRQHEORFNPRYHVZLWKWKHORDGDQG WKHSRZHUUDWLRRIDQ\WDFNOHLVWKHQXPEHURISDUWVRIURSH DWWKLVEORFN:KHUHDURSHHQWHUVDEORFNLVFRXQWHGDVRQH SDUW ZKHUH LW OHDYHV DVDQRWKHUDQGLIWKHVWDQGLQJHQGRI WKH URSH LV VHFXUHG WR WKH PRYLQJEORFNWKDWDOVRFRXQWVDV RQHSDUW 7\SHVRI3XUFKDVH 6LQJOHZKLS$URSHURYHWKURXJKDVLQJOHIL[HGEORFN ZLWKRQHHQGDVWKHKDXOLQJSDUWDQGWKHRWKHUDVWKH

)LJ

VWDQGLQJHQGVHFXUHGWRWKHORDGWREHOLIWHG3RZHUJDLQHG QLO 'RXEOHZKLS)LJ 3RZHUJDLQHGGRXEOH *XQWDFNOH7ZRVLQJOHEORFNVZLWKWKHVWDQGLQJHQGRI



.1276$1'63/,&(6

WKHURSHPDGHIDVWWRRQH3RZHUJDLQHGGRXEOHRUWKUHH WLPHVLIWKHVWDQGLQJHQGEORFNLVWKHPRYLQJRQH :DWFKRU/XII7DFNOH $GRXEOHEORFNDQGDVLQJOHWR ZKLFK WKH VWDQGLQJ HQG LV VHFXUHG 3RZHU JDLQHG WKUHH WLPHVRUIRXULIWKHGRXEOHEORFNPRYHV -LJJHURU+DQG\%LOO\)LJ 7KLVLVD/XII7DFNOH

EXWWKHGRXEOHEORFNKDVDWDLOLQVWHDGRIDKRRNIRUVHFXULQJ RQDQRWKHUURSHDVVKRZQLQWKHLOOXVWUDWLRQ,WLVRIWHQXVHG WRREWDLQJUHDWHUKDXOLQJSRZHURQDQRWKHUSXUFKDVH $5XQQHU7KLVDOZD\VXVHGLQFRQMXQFWLRQZLWKDQRWKHU SXUFKDVHLVOLNHDVLQJOHZKLSEXWJLYHVGRXEOHGSRZHU

%/2&.6$1'7$&./(6



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² WKH UHJXODWLRQV LQ GRFNV UHJDUGLQJ WKH KDQGOLQJ RI FDUJR GHPDQG TXDGUXSOLQJ LW²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



.1276$1'63/,&(6

WDFNOH ZLOO EHDU 7KXV WKH OLIWLQJ FDSDFLW\ RI D /XII 7DFNOH ULJJHG ZLWK O_LQ 1\ORQ LV QRW,EPXOWLSOLHGE\WKUHH HTXDOV,EEXW,EOHVVWKUHHWLPHVWHQSHUFHQW ZKLFK JLYHV  ,E 7KH VDIH ZRUNLQJ ORDG LV WKHUHIRUH ,EDWZKLFKWKHORDGRQWKHVWDQGLQJHQGRIWKHWDFNOH ZRXOG EH      ,E HTXDOV  ,E 7KH ODWWHULVWKHORDGZKLFKWKHVKDFNOHKRRNRUURSHWKDWVHFXUHV WKHVWDQGLQJEORFNPXVWEHFDSDEOHRIVDIHO\VXVWDLQLQJLI \RXXVH\RXUWDFNOHWRLWVVDIHOLPLW

3$57 7:2

67((/:,5(523(

&+$37(5 1,1(

7KHFRQVWUXFWLRQDQGFDUHRI ZLUHURSHV ,7<3(62):,5(523(

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





.1276$1'63/,&(6

URXQG D ILEUH KHDUW DQG RWKHUV ZKHUH VL[ HQFLUFOH D FRUH ZKLFKLVLQHIIHFWDVPDOOHUZLUHURSHRQLWVRZQDFFRXQW )LJVDDQGE  8QOLNHWKH\DUQVLQDKHPSHQURSHZKLFKDUHRIDVWDQGDUG WKLFNQHVV WKH WKUHDGV ZKLFK PDNH XS WKH VWUDQGV RI ZLUH URSH YDU\ FRQVLGHUDEO\ LQ GLDPHWHU 7KH VL]H RI D URSH² ZKLFK DV ZLWK KHPSHQ URSHV LV WKH PHDVXUHPHQW RI LWV FLUFXPIHUHQFH²LV LQFUHDVHG ZLWKRXW DOWHULQJ WKH DUUDQJH PHQWRILWVVWUDQGVE\WKLFNHQLQJWKHZLUHVRIZKLFKWKH\ DUH FRPSRVHG 7KLV QDWXUDOO\ LQFUHDVHV LWV ZHLJKW DV ZHOO DVLWVEUHDNLQJVWUHQJWK2QWKHRWKHUKDQGDURSHZLWKD JUHDWHU QXPEHU RI WKUHDGV SHU VWUDQG ZLOO LQ JHQHUDOEH VWURQJHU WKDQ DQRWKHU RI WKH VDPH VL]H EXW ZLWK D OHVVHU QXPEHU RI WKUHDGV ZLWKRXW EHLQJ FRUUHVSRQGLQJO\ KHDYLHU ,W ZLOO DOVR EH PRUH IOH[LEOH D TXDOLW\ ZKLFK LV IXUWKHU LQFUHDVHGLIHYHU\VWUDQGDVZHOODVWKHURSHLWVHOILVWZLVWHG URXQGDILEUHKHDUW)LJE 

8VXDOO\WKHWKUHDGVKDYHDOHIWKDQGHGWZLVWLQFRQWUDVW WR WKH ULJKWKDQG UXQ RI WKH VWUDQGV DQG D URSH VR FRQVWUXF WHGLVVDLGWRKDYHDQ2UGLQDU\RU5HJXODU /D\ EXWVRPH WLPHVWKHWKUHDGVKDYHWKHVDPHWZLVWDVWKHVWUDQGV7KLV

&216758&7,21$1'&$5(2):,5(523(6

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‡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



.1276$1'6 3 / , & ( 6

,, 81&2,/,1*$1'&2,/,1*

,WLVHYHQPRUHLPSRUWDQWZKHQXVLQJZLUHURSHWKDQLWLV ZLWKKHPSHQWRSUHYHQWNLQNVGHYHORSLQJLIRQO\EHFDXVHLW LV WKH GHYLO V RZQ MRE WR WDNH WKHP RXW RQFH WKH\ KDYH IRUPHG DOWKRXJK RI FRXUVH WKHLU HIIHFW XSRQ WKH OLIH DQG VWUHQJWKRIWKHURSHLV HTXDOO\LPSRUWDQW2SHQLQJDQHZFRLO WKHUHIRUH GHPDQGV WKH JUHDWHVW FDUH DQG D ZLUH URSH VKRXOG DOZD\V EH XQZRXQG LQ WKH RSSRVLWH GLUHFWLRQ WR ZKLFK LW ZDVPDGHXS ,IWKHURSHLVOLJKWDQGIOH[LEOHWKHFRLOFDQEHUROOHGRSHQ DORQJWKHJURXQGRUGHFNLQWKHVDPHZD\WKDWDILUHPDQ OD\VRXWDKRVH)LJ 

,I LW LV WRR KHDY\ RULQIOH[LEOHIRUWKLVWUHDWPHQWLWPXVW EHKHOGVWLOODQGURWDWHGDVWKHZLUHLVWDNHQRIIDOZD\VIURP WKH RXWVLGH 1HYHU VWDUW ZLWK WKH LQVLGH HQG  -XVW KRZ WKLV LV WR EH GRQH GHSHQGV XSRQ ZKHWKHU WKH URSH DUULYHV SDFNHG LQ D FRLO RU RQ D UHHO ,I WKH ODWWHU SDVV D VKDIW WKURXJKWKHUHHODQGSODFHLWRQVWDQGDUGVDVLQILJXUH 7KHQ FXW WKH RXWVLGH ODVKLQJV RQO\ DQG KDXO RII WKH URSH DSSO\LQJ VRPH IRUP RI EUDNH WR WKHUHHOWRHQVXUHWKDWWKH URSHQHYHUVODFNHQV

&216758&7,21$1'&$5(2):,5(523(6

$FRLORQWKHRWKHUKDQGQHHGVWREHODVKHGGRZQRQ WR VRPH IRUP RI WXUQWDEOH ZLWK WZR VWURQJEDWWHQV VHFXUHG FURVVZLVH RQ WRS RI LW WR SUHYHQW DQ\ WXUQV IURP VSULQJLQJ RII DQG NLQNLQJ 7KH WXUQWDEOH OLNH WKH UHHO PHQWLRQHG DERYHVKRXOGEHEUDNHGWRNHHSWKHURSHWLJKW

,I QR WXUQWDEOH LV DYDLODEOH ODVK WZR VXEVWDQWLDO SLHFHV RIZRRGWRJHWKHUWRIRUPDFURVVDQGVHFXUHWZREULGOHVRI VWURQJURSHWRWKHPZLWKWKHIRXUURSHV HQGVHDFKIDVWHQHG VHFXUHO\WRDVHSDUDWHOHJDERXWKDOIZD\EHWZHHQLWVHQG



.1276$1'63/,&(6

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

,,,&877,1*$:,5(523(

+DYLQJGHFLGHGZKHUH\RXZDQWWRFXWWKHURSHSXWDVWRXW \DUQZKLSSLQJRQHLWKHUVLGHRIWKDWSRLQW7KLVLVHVVHQWLDO

&216758&7,21$1'&$5(2):,5(523(6



IRU DOO ZLUH URSHV H[FHSW WKRVH ZLWKDSUHIRUPHGOD\IRULI \RXGRQRWGRLWDVVRRQDV\RXFXWWKURXJKWKHVWUDQGVWKH\ ZLOOIO\DSDUWDQG\RXZLOOQRWEHDEOHWROD\WKHPXSSURSHUO\ DJDLQ 6FLVVRUVDQGNQLYHVDUHXVHOHVVIRUFXWWLQJZLUHURSHVIRU WKDWWDVN\RXQHHGDKDPPHUDQGDFROGFKLVHO7RREWDLQD ILUPHYHQFXWOD\WKHURSHRQVRPHVROLGIRXQGDWLRQRI PHWDORUVWRQHZRRGLVWRRVRIW WKHQIODWWHQWKHVXUIDFH EHWZHHQ WKH ZKLSSLQJV ZLWK D IHZ VKDUS EORZV IURP WKH HGJHRIWKHKDPPHUDQGILQDOO\KDPPHUWKHFKLVHOWKURXJK WKHIODWWHQHGSDUW /DVWO\ WR REWDLQ WKH ORQJHVW SRVVLEOH VHUYLFH IURP \RXU ZLUH URSHV RLO WKHP RFFDVLRQDOO\ DQG GR QRW UXQ WKHP WKURXJKEORFNVWKDWDUHWRRVPDOO 2LOLQJ OXEULFDWHV DQG SURWHFWV WKH VWUDQGV 7KH SDUWLFXODU GUHVVLQJWREHDSSOLHGZLOOGHSHQGXSRQKRZWKHURSHZDV WUHDWHG GXULQJ PDQXIDFWXUH DQG DGYLFH VKRXOG EH VRXJKW RI WKH PDQXIDFWXUHU RU VXSSOLHU *DOYDQL]HG URSHV GR QRW QHHG RLOLQJ WR WKH VDPH H[WHQW DV QRQJDOYDQL]HG DOWKRXJK WKH\ ZLOO ODVW ORQJHU LI VR WUHDWHG EXW VLQFH LQ D \DFKW V ULJJLQJ RLOHG URSHV DUH OLNHO\ WR OHDYH VRPH PRVW XQVLJKWO\ VWDLQV RQ WKH VDLOV \DFKWVPHQ SUHIHU WR UHO\ VROHO\ XSRQ WKH JDOYDQL]LQJ WR SURWHFW WKH VWHHO ZLUHV IURP WKH DWWDFNV RI UDLQ DQG VHD ZDWHU 7KH VDPH FRQVLGHUDWLRQ DSSOLHV ZKHU HYHUHOVHDZLUHURSHFRPHVLQWRFRQWDFWZLWKFORWKHJLQ WKHFRUGWKURXJKWKHWRSRIDWHQQLVQHW +RZHYHU LI WKH \DFKWVPDQ OD\V KLV ERDW XS IRU WKH ZLQWHUDWKLQFRDWLQJRI9DVHOLQHRQDOOKLVZLUHURSHVZLOO KHOSWROHQJWKHQWKHLUOLYHV,WFDQEHZLSHGRIIHDVLO\LQWKH VSULQJ$PRUHSHUPDQHQWDOWHUQDWLYHLVWRFOHDQWKHURSHV WKRURXJKO\DQGDSSO\DFRDWLQJRIPDULQHYDUQLVK $ YHU\ VDWLVIDFWRU\ DOWHUQDWLYH WR RLOLQJ RU JDOYDQL]LQJ LVWKHPRGHUQSODVWLFFRYHULQJRIZLUHURSHV5RSHVVR



.1276$1'6 3 / , & ( 6

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

&216758&7,21$1'&$5(2):,5(523(6



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

7KHUHODWLYHVWUHQJWKVRIYDULRXVURSHV 7R HQDEOH DTXLFNDSSUR[LPDWHFRPSDULVRQWREHPDGH EHWZHHQWKHEUHDNLQJVWUHQJWKVDQGZHLJKWVRIYDULRXVW\SHV



.1276$1'6 3 / , & ( 6

RIURSHWKHWDEOHEHORZVKRZVWKHVPDOOHVWVL]HUHTXLUHGIRU D SDUWLFXODU ORDG EDVHG RQ WKH SULQFLSOH WKDW QR URSH VKRXOG EH XVHG XQGHU D VWUDLQ HTXDO WR PRUHWKDQKDOILWV EUHDNLQJ VWUHQJWK 7KHZHLJKWVJLYHQDUHLQHYHU\FDVHIRU IHHWRIURSH

&+$37(57(1

:LUHVSOLFLQJ ,*(1(5$/5(0$5.6

7KHWRROVQHHGHGIRUZLUHVSOLFLQJDUH +DPPHU 7XFNHUIRUVSOLFLQJVPDOOVWUDQGV 5RXQGPDUOLQHVSLNH &ROGFKLVHO 3DLURIVWHHOZLUHFXWWHUV 9LFH )ODWPDUOLQHVSLNH 6HUYLQJPDOOHWSUHIHUDEO\RQHZLWKDVPDOOUHHODWWDFKHG WRWKHKDQGOHWRKROGVHL]LQJZLUH

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

 XVHLQIRUPLQJDQH\H 7KHLUJUHDWDWWUDFWLRQLVWKDWLWWDNHV



.1276$1'6 3 / , & ( 6

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

:,5(63/,&,1*



WKH SRLQW ZKHUH LW HPHUJHV IURP XQGHU WKH SUHYLRXV VWUDQG ,WLVEHWWHUWRSDVVWKHVSLNHXQGHUWKHVWUDQGZKHUHWKHWXFN LVWREHPDGHDQGWKHQZRUNLWGRZQWKHZLUHIRUDIHZ LQFKHVZLWKDVSLUDOPRYHPHQW1RZSDVVWKHHQGWKURXJK DQGZRUNWKHVSLNHEDFN WRLWVRULJLQDOSRVLWLRQDWWKHVDPH WLPHSXOOLQJWKHVWUDQGWKURXJKUHPRYHWKHVSLNHDQGFRP SOHWHWKHMRERISXOOLQJWKHVWUDQGWLJKW,QDQ\FDVHLQZLUH VSOLFLQJQHYHUUHPRYHWKHVSLNHIURPXQGHUDVWUDQGEHIRUH \RX KDYH SDVVHG WKH HQG WKURXJK HYHQ WKRXJK LQ VSOLFLQJ KHPSHQ URSH \RX FDQ IRUFH D VWUDQG WKURXJK ZLWKRXW SHU KDSVXVLQJDVSLNHDWDOO $IWHUPDNLQJWKHILUVWURXQGRIWXFNVVRPHSHRSOHKROG DOO WKHHQGVWRJHWKHUDORQJWKHVWDQGLQJSDUWDQGEHDWWKH VSOLFHZLWKDVSLNHWRPDNHHYHU\WKLQJWLJKW7KLVVKRXOG QRW EH GRQH ZLWK DQ\ VXFFHHGLQJ WXFNV QRU VKRXOG WKH VWUDQGVEHKDPPHUHGEDFNDVIDUDVWKH\ZLOOJR5DWKHUWKH VHFRQG DQG IROORZLQJ WXFNV VKRXOG EH DOORZHG WR OLH LQ DORQJQDWXUDOOD\ZLWKRXWEHLQJLQDQ\ZD\ORRVH ,Q DQ\ VSOLFH WKH HQG RI WKH URSH PXVW EH XQODLG WR D FHUWDLQ SRLQW LQ RUGHU WR SURYLGHHQGVORQJHQRXJKWRPDNH WKHQHFHVVDU\WXFNV:LWKDKHPSHQURSHDZKLSSLQJDWWKLV SRLQWLVQRWDOZD\VQHFHVVDU\ZLWKDZLUHURSHLWLVHVVHQWLDO ,W VKRXOG EH DERXW  LQ ORQJ PDGH ZLWK URSH \DUQ RU EHWWHU VWLOO PDUOLQH DQG VKRXOG EH SXW RQDZD\IURP WKH HQG RI WKH URSH $ :HVW &RXQWU\ :KLSSLQJ ZLOO SUREDEO\ EHIRXQGWREHWKHHDVLHVWWRPDNH %HIRUH FXWWLQJ WKHZKLSSLQJDWWKHHQGRIWKHURSHDQG DOORZLQJWKH VWUDQGVWRXQOD\WRWKHQHZRQH\RXKDYHSXW RQKRZHYHUSXWDQRWKHUOLJKWVHL]LQJDERXWLQIURPWKH HQGXQOD\RQO\WRWKLVDQGWKHQZKLSWKHHQGRIHDFKLQGLYL GXDO VWUDQG ,IWKLVLVQRWGRQHHDFKVWUDQGZLOORSHQRXW DQGXQOD\ZKHQWKHHQGZKLSSLQJLVFXW2QFHWKHVWUDQG ZKLSSLQJVDUHRQWKHWHPSRUDU\VHL]LQJFDQEHUHPRYHG



.1276$1'63/,&(6

:LWK WKH VWUDQGV DSDUW DQG ZKLSSHG LQGLYLGXDOO\ FXW RXW WKH URSH V ILEUH KHDUW DV IDU EDFN DV SRVVLEOH ,I WKH VWUDQGVKDYHLQGLYLGXDOKHDUWVWKHVHWRRFDQEHFXWRXW RQH DW D WLPH UHPRYLQJ HDFK ZKLSSLQJ DV QHHGHG DQG UHSODFLQJ LW EHIRUH \RX PRYH RQ WR WKH QH[W VWUDQG &XWWLQJ RXWWKHVWUDQGKHDUWVLVQRWHVVHQWLDOEXWLWOHDGVWRDVOLP PHUQHDWHUDQGSHUKDSVVDIHUVSOLFH /DVWO\GRQRWEHQLJJDUGO\LQWKHOHQJWK\RXDOORZLQ HQGVIRUWXFNLQJ6KRUWHQGVDUHKDUGHUWRJULSDQGEHQG 7ZRIHHWVKRXOGEHVXIILFLHQWIRUDQ\WKLQJXSWRDLQURSH ,,(<(63/,&(6

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

:,5(6 3 / , & , 1 *



5RPDQ ,Q HYHU\ FDVH WKH QXPEHULQJ LV DV IROORZV :KHQ WKH XQODLG HQGV DUH VSUHDG RXW HYHQO\ LQ QDWXUDO RUGHU WKH HQGRQWKHH[WUHPHULJKWLV1R7KHQUHDGLQJWRWKHOHIW FRPH1RVDQGWKHH[WUHPHOHIWKDQGHQG:KHQ

WKHVHHQGVDUHODLGRQWKHVWDQGLQJSDUWRIWKHURSHZLWK WKHLUIRUNDWWKHSRLQWZKHUHWKHVSOLFHLVWRFRPPHQFHWKH VWUDQG QHDUHVW WRHQG1RLVVWUDQG,7KHQUHDGLQJWR WKH OHIW URXQG WKH URSH FRPH VWUDQGV ,, ,,, ,9 9 DQG 9, ZKLFKLV, VULJKWKDQGQHLJKERXU 7XFNHQG1RXQGHUVWUDQG,XQGHU,,XQGHU,,, DQGXQGHU,9DOOWXFNVWREHPDGHIURPULJKWWROHIW 7XFNHQG1RXQGHUVWUDQGV9DQG9,3XOORXWWKH VSLNHRQO\IDUHQRXJKWRDOORZVWUDQG9,WRGURSGRZQDQG WXFNHQG1RXQGHUVWUDQG9(YHU\HQGQRZSDVVHVXQGHU



.1276$1'63/,&(6

LWV RZQ VWUDQG H[FHSW HQG 1R ZKLFK SDVVHV XQGHUWZR VWUDQGV IURP ULJKW WR OHIW OLNH WKH RWKHUV+DXODQGEHDW WKHWXFNVWLJKW)LJD 7KLVFRPSOHWHVWKHILUVWVHWRI WXFNV

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

:,5(6 3 / , & , 1 *



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



.1276$1'6 3 / , & ( 6

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

7RPDNHD6KRUW6SOLFH 3XWDILUPEXWQDUURZZKLS SLQJRQERWKURSHVDERXWLQIURPWKHHQG8QOD\WR WKLVSRLQWDQGFXWRXWDOOKHDUWV&UXWFKWKHVWUDQGVDVIRU D6KRUW6SOLFHLQKHPSHQURSHH[FHSWWKDWWKHUHZLOOEH VL[ WR D VLGH QRW WKUHH 3XW D ILUP VHL]LQJ URXQG WKH FUXWFKWRNHHSDOOSDUWVLQSRVLWLRQZKLOVWPDNLQJWKHWXFNV

:,5(6 3 / , & , 1 *



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

DQG OD\ XS WKH FRUUHVSRQGLQJ ORQJ HQG RI URSH %  LQ LWV SODFHXQWLORQO\DERXWIWRIWKHORQJHQGUHPDLQV/RFN



.1276$1'6 3 / , & ( 6

WKH WZR HQGV E\ FURVVLQJ WKHP DQG FXW RII WKH URSH $

HQGXQWLOLWWRRLVRQO\DERXWIWORQJ6LPLODUO\XQOD\WKH RWKHU WZR URSH $  VKRUW HQGV DQG OD\ XS WKH URSH %

HQGV LQ WKHLU SODFHV DQG ORFN WKHP&XWWKHZKLSSLQJRQ URSH % DQGOD\WKHURSH $ ORQJHQGVXSLQSODFHRIWKH URSH % VKRUWHQGVDQGORFNWKHP 7KH SRLQWV RI ORFNLQJ RI RSSRVLQJ VWUDQGV LH WKH SRLQWV XSWRZKLFKRQHVWUDQGLVODLGXSLQSODFHRIDQRWKHUVKRXOG EHVRDUUDQJHGWKDWWKH\DUHHTXLGLVWDQW )LJ 
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

:,5(6 3 / , & , 1 *



VSLNH DORQJ EHWZHHQ WKH VWUDQGV ZKHUH WKHKHDUWLVHPHUJLQJ ZLOO PDNH LW HDVLHU WR SXOO WKH ODWWHU RXW   8QFURVV WKH ORFN ,QVHUW WKH VSLNH XQGHU WKH VWUDQG QH[W WR WKLV ILUVW ORRVH HQG RI URSH $  DQG SDVV WKH SRLQW RI WKH VSLNH RYHU WKDW HQG  1RZ E\ PRYLQJ WKH VSLNH DORQJ WKH URSH WRZDUGV WKH LQLWLDO FUXWFKLQJ SRLQW DQG DW WKH VDPH WLPH EHDULQJGRZQZLWKLWVSRLQWRQWKHORRVHHQGWKHODWWHUZLOO EHIRXQGWRGLVDSSHDULQWRWKHVSDFHOHIWE\WKHKHDUW)LJ E 3XOOPRUHRIWKHKHDUWRXWXQWLOLWLVRYHUKDOIZD\ WRZDUGVWKHQH[WSDLURIORFNHGHQGV8VLQJWKHVSLNHDV LQVWDJHVDQGEXWWKLVWLPHPRYLQJDZD\IURPWKHFUXWFK EXU\ WKH ORRVH HQG RI URSH %  SUHYLRXVO\ ORFNHG ZLWK WKH URSH $  ORRVH HQG DOUHDG\ EXULHG  3XOO RXW PRUH KHDUW DQG EXU\ WKH QH[W ORRVH HQG RI URSH $  WKHQ WKDW RI URSH

%  WKHQ WKH WKLUG RI URSH $  DQG WKH WKLUG RI URSH %   &XW RII WKH KHDUW RI URSH $  DQG SXVK WKH HQG LQWR WKH URSH  5HSHDW VWDJHV  WR  RQ URSH %  $ OLWWOH KDPPHULQJ DQG WZLVWLQJ ZLOO SXW WKH URSH EDFNL QWR VKDSH DJDLQDQGWKHVSOLFHVKRXOGEHDOPRVWLPSRVVLEOHWRGHWHFW $Q DOWHUQDWLYH PHWKRG LV QRW WR XQFURVV WKH ORFN DV LQ VWDJHEXWWREXU\WKHHQGVX VLQJ WZRVSLNHVDVVKRZQLQ WKHLOOXVWUDWLRQ)LJ 



.1276$1'63/,&(6

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
:,5(6 3 / , & , 1 *



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

7DLOSLHFH

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²XQOLNH WKH LQFRPSHWHQW KXPDQV ZKR ZHUH WDNHQ RII LQ D PRWRUERDW EXW LWV XQGHVHUYHG HQG WDXJKW PH D OHVVRQWKDW,QRZSDVVRQ,I\RXDUHHYHUZKHUH\RXUOLIH PD\ GHSHQG XSRQ URSHV²DIORDW RQ D PRXQWDLQ XS D WUHH RU ZRUNLQJ RQ D URRI²QHYHU EH ZLWKRXW D VKDUS NQLIH SUHIHUDEO\ RQH ZLWK D VPDOO PDUOLQHVSLNH DWWDFKHG 5HPHP EHU KRZ $OH[DQGHU WKH *UHDW VROYHG WKH PRVW IDPRXV RI DOO NQRWW\ SUREOHPV KH VODVKHG WKH *RUGLDQ .QRW DSDUW ZLWKKLVVZRUG



$/(;$1'(5-RKQQ

$PHULFDQ:KLSSLQJ $UWLILFLDO(\H6SOLFH

,QGH[



%$&.63/,&(

%DJ.QRW %DJR :ULQNOH %DOH6OLQJ %HJJDUPDQ V.QRW %ODFNZDOO+LWFK %ORFNV  IRUZLUHURSH %ROWURSH %RVXQ V&KDLU %RWWOH.QRW %RZOLQHV  %UDLGHGURSH %UHDNLQJVWUHQJWKVKHPS   ZLUH   %XWW6OLQJ &$%/(/$<

&DUULFN%HQG 0DW &DVNVWRVOLQJ &DWVSDZ &KDLQSODLW GRXEOH &KDLQ6SOLFH &KHTXHU.QRW &OHDWMDPPLQJWXUQRQ &ORYH+LWFK &OXPS%ORFN &RDFK:KLSSLQJA &RFNVFRPELQJ

&RLOLQJKHPS  ZLUH  &RLU &RPPRQ6HQQLW &RPPRQ:KLSSLQJ &RWWRQ &RYHULQJ &ULQJOHWRZRUN &URZQ.QRW IRUFRYHULQJ SODLW &XW6SOLFH '$&521 'HQLVRQ&DSW(:Q 'LDJRQDO/DVKLQJ 'LDPRQG.QRW SODLW IRUFRYHULQJ 'RXEOH/XII7DFNOH 'RXEOH:KLS3XUFKDVH 'UDZ+LWFK (<(63/,&(6 KHPS  $UWLILFLDORU6SLQGOH )OHPLVK IRXUVWUDQGHG LQPLGGOHRIURSH RQDWKLPEOH VDLOPDNHU V VLQJOHWXFNDQGZDOONQRW VRIW ZRUPHGDQGFROODUHG (\H6SOLFHVZLUH  OHIWKDQGHGQDYDO  ORFNLQJ





(\H6SOLFHVZLUH FRQW RQDWKLPEOH UHGXFHG ULJKWKDQGHG DQGA ) , ' ' / ( %/2&.

)LJXUHRI(LJKW.QRW )LVKHUPDQ V%HQG )ODW6HL]LQJ )ODW6HQQLW )OD[ )OHPLVK(\H6SOLFH )RRWURSH.QRW ORQJ )RUPHUIRU7XUN V+HDG )R[ )UD\LQJ )UHQFK%RZOLQH )UHQFK6HQQLW *$17/,1(

*ROGOLQH *UDQQ\.QRW *UDVV/LQH *URPPHWV IRUEORFNV ZLUH² *XQ7DFNOH +$/)+,7&+ 

+DOIKLWFKLQJ +DPEUR /LQH +DQG\%LOO\ +DZVHUOD\ +HDUW7KLPEOH +HPS +HUULQJERQH:HDYH +RXVHOLQH

, 5 2 1 %281'%/2&.6

,1'(;

-$00,1*7851 

-LJJHU -XWH .,1.6  DYRLGLQJ .QLIHYDOXHRI LWH

LL /$1 * 6 /$< /DQ\DUG7KLPEOH /DVKLQJV /D\VRIURSHKHPS  ZLUH  /HDGLQJ%ORFN /RQJ/D\ /RQJ6SOLFH ZLUH  /RZHULQJ+LWFK /XII7DFNOH 0$&+,1(7:,1(

0DQ+DUQHVV+LWFK 0DQLOD 0DQURSH.QRW 0DULQHU V6SOLFH 0DUOLQH 0DUOLQH+LWFK 0DUOLQH6SLNH+LWFK 0DWV 0DWWKHZ:DONHU.QRWV 0LGVKLSPDQ V+LWFK 0RQNH\ V)LVW 0RQRILODPHQWSRO\SURS\OHQH URSH 0RXVLQJ 0XOWLILODPHQWSRO\SURS\OHQH URSH 1(77/(

1RQ7RSSOLQJ%ORFN 1\ORQ

25',1$5</$<ZLUH 

2VVHO+LWFKDQG.QRW 2YDO0DW 2YHUKDQG.QRW GRXEOH SODLW 3$5%8&./(

3DUFHOOLQJKHPS  ZLUH  3LQHDSSOH.QRW 3ODLQOD\ 3ODLWV 3RLQWLQJ 3RO\HWK\OHQHURSH 3UHIRUPHGOD\ 5$&.,1*6(,=,1*

5HHI.QRW 5HJXODUOD\ZLUH  5RDGPHQGHU V.QRW 5ROOLQJ+LWFK 5RSHKHPS  EUHDNLQJVWUDLQ FDUHRI FRQVWUXFWLRQ FRYHULQJ VL]HV VSOLFHV ZHLJKWRI ZKLSSLQJ ZRUPLQJSDUFHOOLQJDQGVHUY LQJ 5RSHZLUH  EORFNVIRU EUHDNLQJVWUDLQ FDUHRI FRLOLQJDQGXQFRLOLQJ FRQVWUXFWLRQ FXWWLQJ SODVWLFFRYHULQJIRU VSOLFLQJ

,1'(;

5RSHZLUH FRQW ZHLJKWRI ZRUPLQJSDUFHOOLQJDQGVHUY LQJ 5RSLQJWZLQH 5RXQG6HL]LQJ 5RXQG6HQQLW 5RXQG6WUDQGZLUH URSH 5RXQG7XUQ DQGWZRKDOIKLWFKHV 5XQQHUV 5XQQLQJ%RZOLQH 6$,/0$.(5 6(<(63/,&( :KLSSLQJ 6DLO7KLPEOH 6DPVRQOLQHV 6FDIIROG+LWFK 6HDPLQJ7ZLQH 6HL]LQJV 6HOYDJHH6WURS 6HQQLWV 6HUYLQJKHPS  ZLUH  6KHHSVKDQN 6KHHU/DVKLQJ 6KHHW%HQGV 6KRUWOD\ 6KRUWVSOLFHKHPS  ZLUH  6KULQNDJH 6KURXG.QRW 6KURXGOD\ 6LQJOH:KLSSXUFKDVH  6LVDO 6LVWHU%ORFN 6OLQJV 6OLSSHU\%HQG 6PDOOVWXIIV 6QDNLQJ 6QDWFK%ORFN 6RIWOD\





6SDQLVK+LWFKLQJ  6SDQLVK:LQGODVV  6SHQFHU&KDUOHV/Q 6SLQGOH(\H6SOLFH  6SOLFHVKHPS  H\H  JHQHUDOSULQFLSOHV MRLQLQJ  YDULRXV  6SOLFHVZLUH  H\H  JHQHUDOSULQFLSOHV  MRLQLQJ  WRROVIRU  6SXQ\DUQ .QRW 6TXDUH/DVKLQJ 6TXDUH0DW 6TXDUH3ODLW 6TXDUH6HQQLW 6WDQGDUGOD\ 6WRSSHU+LWFK .QRWV 6WUDQGVKHPS  ZLUH  6WURSV RQEORFNV 6WXQVDLO+DO\DUG%HQG 6ZRUG0DW 7$&./(6 

,1'(;

7DLO%ORFN 7DUULQJ 7KLPEOHV 7KRURXJKIRRWLQJ 7KUHHDQG7ZR7DFNOH 7KUHHIROGSXUFKDVH 7KUXP0DW 7KXPE.QRW 7LPEHU+LWFK 7UXHOD\ 7XUN V+HDG IRXUSDUW WKUHHSDUW ZLWKDIRUPHU ZLWKVWXGV 7ZLQHV 81&2,/,1*KHPS  ZLUH  :$// $1'&52:13/$,7

:DOO.QRW IRUFRYHULQJ :DWFK7DFNOH :HVW&RXQWU\:KLSSLQJ :KLSSLQJV :RUNLQJORDG :RUPLQJKHPS  ZLUH  <$516